HomeMy WebLinkAbout11-10-2021 Administration Committee Meeting Complete Agenda Packet
ORANGE COUNTY SANITATION DISTRICT
SPECIAL NOTICE REGARDING CORONAVIRUS (COVID-19) AND ATTENDANCE AT PUBLIC MEETINGS
Governor Newsom signed Assembly Bill (AB) 361 on September 16, 2021, which, in part, addresses the conduct of public meetings in light of the continued State of Emergency order.
Effective October 1, 2021, AB 361 suspends the requirements located in California Government Code, Section 54953, Subdivision (b), Paragraph (3) specifically pertaining to the conduct of public meetings. As such, the Orange County Sanitation District (OC San) Board of Directors has determined that due to the size of OC San’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. OC San offers several ways in which to interact during meetings. You will find information as to these opportunities below. ONLINE MEETING PARTICIPATION
You may join the meeting live via Teams on your computer or similar device or web browser by using the link below: Click here to join the meeting
We suggest testing joining a Teams meeting on your device prior to the commencement of the meeting. For recommendations, general guidance on using Teams, and instructions on joining a Teams meeting, please click here.
Please mute yourself upon entry to the meeting. Please raise your hand if you wish to speak during the public comment section of the meeting. The Clerk of the Board will call upon you by using the name you joined with. Meeting attendees are not provided the ability to make a presentation during the meeting.
Please contact the Clerk of the Board at least 48 hours prior to the meeting if you wish to present any items. Additionally, camera feeds may be controlled by the meeting moderator to avoid inappropriate content.
OC ~SAN
ORANGE COUNTY SANITATION DISTRICT
HOW TO PARTICIPATE IN THE MEETING BY TELEPHONE To join the meeting from your phone: Dial (213) 279-1455 When prompted, enter the Phone Conference ID: 506 649 988#
All meeting participants may be muted during the meeting to alleviate background noise. If you are muted, please use *6 to unmute. You may also mute yourself on your device. Please raise your hand to speak by using *5 during the public comment section of the meeting. The Clerk of the Board will call upon you by using the last 4 digits of your phone
number as identification. NOTE: All attendees will be disconnected from the meeting at the beginning of Closed Session. If you would like to return to the Open Session portion of the meeting, please login or dial-in to the Teams meeting again and wait in the Lobby for admittance. VIEW THE MEETING ONLINE ONLY The meeting will be available for online viewing only at:
https://ocsd.legistar.com/Calendar.aspx HOW TO SUBMIT A COMMENT
You may provide verbal comment in real time during the meeting. In order to provide a verbal comment, please raise your hand as described above or alert the Clerk of the Board before or during the public comment period. You may also submit your comments and questions in writing for consideration in advance
of the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx or sending them to OCSanClerk@ocsan.gov with the subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”.
You may also submit comments and questions for consideration during the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx. The eComment feature will be available for the duration of the meeting. All written public comments will be provided to the legislative body and may be read into
the record or compiled as part of the record. TECHNICAL SUPPORT PRIOR TO AND DURING MEETINGS
For technical assistance before and during the meeting, please call 714-593-7431. For
any other questions and/or concerns, please contact the Clerk of the Board’s office at 714-593-7433. Thank you, in advance, for your patience in working with these technologies. We appreciate your interest in OC San!
November 3, 2021
NOTICE OF MEETING
ADMINISTRATION COMMITTEE
ORANGE COUNTY SANITATION DISTRICT
Wednesday, November 10, 2021 – 5:00 P.M.
ACCESSIBILITY FOR THE GENERAL PUBLIC
Your participation is always welcome. Specific information as to how to
participate in this meeting is detailed in the Special Notice attached to
this agenda. In general, OC San offers several ways in which to interact
during meetings: you may join the meeting live via Teams on your
computer or similar device or web browser, join the meeting live via
telephone, view the meeting online, and/or submit comments for
consideration before or during the meeting.
A regular meeting of the Administration Committee of the Orange County
Sanitation District will be held in the manner indicated herein on
Wednesday, November 10, 2021 at 5:00 p.m.
0 ~SAN 10844 Ellis Avenue
Fountain Valley, CA 92708
714.962.2411
ORANGE COUNTY SANITATION DISTRICT www.ocsan.gov
Our Mission: To protect public health and the environment by
providing effective wastewater collection, treatment, and recycling.
Serving:
Anaheim
Brea
Buena Park
Cypress
Fountain Valley
Fullerton
Garden Grove
Huntington Beach
Irvine
La Habra
La Palma
Los Alamitos
Newport Beach
Orange
Placentia
Santa Ana
Seal Beach
Stanton
Tustin
Villa Park
County of Orange
Costa Mesa
Sanitary District
Midway City
Sanitary District
Irvine Ranch
Water District
Yorba Linda
Water District
ADMINISTRATION COMMITTEE MEETING DATE
BOARD MEETING DATE
11/10/21 11/17/21 *
12/08/21 12/15/21 *
JANUARY DARK 01/26/22
02/09/22 02/23/22
03/09/22 03/23/22
04/13/22 04/27/22
05/11/22 05/25/22
06/08/22 06/22/22
07/13/22 07/27/22
AUGUST DARK 08/24/22
09/14/22 09/21/22
10/12/22 10/26/22
* 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: November 10, 2021 Time: 5:00 p.m. Adjourn:
COMMITTEE MEMBERS (13)
Glenn Parker, Chair
Anthony Kuo, Vice-Chair Brad Avery
Art Brown
Kim Carr
Mark Chirco
Rose Espinoza
Marshall Goodman
Patrick Harper
Andrew Nguyen
David Shawver
John Withers (Board Chair) Chad Wanke (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 7/13/2021 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 Paulo Morales 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 Kim Nichols Chip Monaco 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, November 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.ocsan.gov
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@ocsan.gov at least
14 days before the meeting.
FOR ANY QUESTIONS ON THE AGENDA, BOARD MEMBERS MAY CONTACT STAFF AT:
General Manager: Jim Herberg, jherberg@ocsan.gov / (714) 593-7300
Asst. General Manager: Lorenzo Tyner, ltyner@ocsan.gov / (714) 593-7550
Asst. General Manager: Rob Thompson, rthompson@ocsan.gov / (714) 593-7310
Director of Human Resources: Celia Chandler, cchandler@ocsan.gov / (714) 593-7202
Director of Engineering: Kathy Millea, kmillea@ocsan.gov / (714) 593-7365
Director of Environmental Services: Lan Wiborg, lwiborg@ocsan.gov / (714) 593-7450
OC ~SAN
ORANGE COUNTY SANITATION DISTRICT
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 10, 2021
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL AND DECLARATION OF QUORUM:
PUBLIC COMMENTS:
Your participation is always welcome. Specific information as to how to participate in a meeting is detailed in the
Special Notice attached to this agenda. In general, OC San offers several ways in which to interact during
meetings: you may join the meeting live via Teams on your computer or similar device or web browser, join the
meeting live via telephone, view the meeting online, and/or submit comments for consideration before or during
the meeting.
You may provide verbal comment in real time during the meeting. In order to provide a verbal comment, please
raise your hand (directions provided in the Special Notice attached to this agenda) or alert the Clerk of the Board
before or during the public comment period.
You may submit your comments and questions in writing for consideration in advance of the meeting by using the
eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx or sending them to
OCSanClerk@ocsan.gov with the subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to
your comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”.
You may also submit comments and questions for consideration during the meeting by using the eComment
feature available online at: https://ocsd.legistar.com/Calendar.aspx. The eComment feature will be available for
the duration of the meeting.
All written public comments will be provided to the legislative body 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.
1.2021-1939APPROVAL OF MINUTES
RECOMMENDATION:
Approve Minutes of the Regular Meeting of the Administration Committee held October
13, 2021.
Originator:Kelly Lore
Page 1 of 7
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 10, 2021
Agenda Report
10-13-2021 Administration Committee Minutes
Attachments:
2.2021-1925PROFESSIONAL RISK MANAGEMENT CONSULTANT AGREEMENT
RECOMMENDATION:
Approve a sole source Professional Consultant Services Agreement with John J.
Preston, Specification No. SSJ 2468, to perform professional risk management
consulting services for the Orange County Sanitation District, which includes
overseeing property and general liability loss control and setting loss control
requirements on public bids and contracts, risk transfer, loss prevention, and risk
reduction in an amount not to exceed $150,000 per year, for a term of one year
beginning December 1, 2021 through November 30, 2022; with up to two (2) one-year
renewal options.
Originator:Lorenzo Tyner
Agenda Report
Professional Consultant Services Agreement
Attachments:
3.2021-1883OCEAN MODELING SUPPORT PROJECT
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve Amendment extending the Agreement between the Orange County
Sanitation District and Southern California Coastal Water Research Project
regarding Ocean Outfall Plume Modeling, to provide physical and
biogeochemical modeling of the Orange County Sanitation District’s ocean
discharge, at a cost not to exceed $135,000, for a total amount not to exceed
$383,000;
B. Approve a contingency of 13,500 (10%); and
C. Approve an agreement performance period extension to December 31, 2024.
Originator:Lan Wiborg
Agenda Report
Amendment No. 1 Modeling Agreement
Original SCCWRP Research Project Agreement
Attachments:
4.2021-1942REPROGRAPHICS AND DOCUMENT SERVICES FOR PREVIOUSLY
CONSTRUCTED PROJECTS
RECOMMENDATION:
A. Authorize a Purchase Order Contract with ARC Document Solutions, LLC for
document scanning, indexing, and hyperlinking services per County of Orange
Page 2 of 7
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 10, 2021
Master Contracts #RCA MA-017-16010366, for an amount not to exceed
$125,000; and
B. Approve a contingency of $15,000.
Originator:Lorenzo Tyner
Agenda ReportAttachments:
5.2021-1704CONSOLIDATED FINANCIAL REPORT FOR THE FIRST QUARTER
ENDED SEPTEMBER 30, 2021
RECOMMENDATION: Recommend to the Board of Directors to:
Receive and file the Orange County Sanitation District First Quarter Financial Report
for the period ended September 30, 2021.
Originator:Lorenzo Tyner
Agenda Report
Consolidated Financial Report for the First Quarter Ended
September 30 2021
Attachments:
6.2021-1906MICROSOFT ENTERPRISE LICENSE AGREEMENT (ELA) FOR
MICROSOFT ENTERPRISE SOFTWARE LICENSES
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Purchase Order for a three-year contract to purchase Microsoft
Enterprise licenses under the Microsoft ELA in accordance with Microsoft
Volume Enterprise Enrollment - for State and Local government, Riverside
County Master Licensing Agreement 01E73970, payable annually and with a
contract expiration date of December 31, 2024, for a total amount not to exceed
$1,470,495; and
B. Approve a contingency of 220,574 (15%).
Originator:Lorenzo Tyner
Agenda Report
Insight MS EA Quote Request
Attachments:
7.2021-1926PROPERTY MANAGEMENT SERVICES FOR 18350 MT. LANGLEY
STREET AND 18368-18375-18381-18384 BANDILIER CIRCLE,
FOUNTAIN VALLEY
RECOMMENDATION: Recommend to the Board of Directors to:
Approve Amendment No. 5 to the sole source agreement with The Muller Company for
Property Management Services for 18350 Mt. Langley Street and 18368-18375-18381-
Page 3 of 7
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 10, 2021
18384 Bandilier Circle in Fountain Valley, for the period of January 1, 2022 through
January 31, 2023 for a management fee of $3,200 per month plus other incurred
expenses, including an additional renewal period of twelve (12) months.
Originator:Lorenzo Tyner
Agenda Report
Amendment No. 5
Attachments:
8.2021-1952GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO
THE PRE-APPROVED OEM SOLE SOURCE LIST
RECOMMENDATION: Recommend to the Board of Directors to:
A. Receive and file Orange County Sanitation District purchases made under the
General Manager’s authority for the period of July 1, 2021 to September 30,
2021; and
B. Approve the following additions to the pre-approved OEM Sole Source List for
the period of July 1, 2021 to September 30, 2021:
·ACCUSONIC (A BRAND OF ADS LLC) - Maintenance and Repair of
Accusonic Equipment
·DR. KRISTY FORSGREN - Fish Liver Histopathology Analysis and Reporting
·EATON - Uninterruptible Power Supply (UPS) Parts and Service
·MOBIUS INSTITUTE - Mobius iLearnReliabity Enterprise Training Product
·NIXON-EGLI EQUIPMENT CO. - Modifications & Custom Equipment
Installation on Welder Service Truck
·OVIVO - Trickling Filter Materials and Repairs
·TRIMBLE WATER - Trimble Unity Software and Support
Originator:Lorenzo Tyner
Agenda ReportAttachments:
NON-CONSENT:
9.2021-1907IMPLEMENTATION OF SERVICENOW IT SERVICE MANAGEMENT
SOFTWARE
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Professional Services Agreement to Computer Aid, Inc. (CAI) to
provide ServiceNow IT Service Management software and implementation
services, Specification No. CS-2021-1244BD, for a total amount not to exceed
$474,505; and
B. Approve a contingency of 47,451 (10%).
Page 4 of 7
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 10, 2021
Originator:Lorenzo Tyner
Agenda Report
CS-2021-1244BD Agreement - Draft
Attachments:
10.2021-1908ORANGE COUNTY SANITATION DISTRICT ANNUAL
COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR END JUNE
30, 2021
RECOMMENDATION: Recommend to the Board of Directors to:
Receive and file the Orange County Sanitation District’s Annual Comprehensive
Financial Report (ACFR) for the year ended June 30, 2021, prepared by staff and
audited by Macias Gini & O’Connell LLP (MGO), Certified Public Accountants, along
with the following reports prepared by MGO:
1. Report to the Board of Directors; and
2. Independent Accountants’ Report on Agreed-Upon Procedures Applied to
Appropriations Limit Worksheets.
Originator:Lorenzo Tyner
Agenda Report
Report to the Board of Directors
Independent Accountant's Report on Applying Agreed-Upon
Procedures Related to Appropriations Limit Calculation
ACFR for the Year Ended 06-30-2021
Presentation - ACFR Staff
Presentation - MGO
Attachments:
11.2021-1731SECTION 115 TRUST PENSION ACCOUNT CONTRACT AWARD
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve Professional Services Agreements to three firms: Chandler Asset
Management, Inc.; PFM Asset Management, Inc.; and Public Agency
Retirement Services to establish and oversee Orange County Sanitation
District’s Internal Revenue Service (IRS) Code Section 115 pension trust
administration and investment management services;
B. Adopt Resolution No. OC SAN 21-XX entitled: “A Resolution of the Board of
Directors of Orange County Sanitation District Adopting a Post-Employment
Benefit Trust Agreement with Chandler Asset Management, Inc.; and
Authorizing Officers to Execute Documents and Agreements”;
C. Adopt Resolution No. OC SAN 21-XX entitled: “A Resolution of the Board of
Directors of Orange County Sanitation District Adopting a Post-Employment
Page 5 of 7
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 10, 2021
Benefit Trust Agreement with PFM Asset Management, Inc.; and Authorizing
Officers to Execute Documents and Agreements”;
D. Adopt Resolution No. OC SAN 21-XX entitled: “A Resolution of the Board of
Directors of Orange County Sanitation District Adopting a Post-Employment
Benefit Trust Agreement with Public Agency Retirement Services; and
Authorizing Officers to Execute Documents and Agreements”; and
E. Authorize staff to make an initial investment of up to $15 million into the Section
115 pension trusts.
Originator:Lorenzo Tyner
Agenda Report
Chandler Agreement
PARS Agreement
PFM Agreement
OC SAN 21-XX (Chandler)
OC SAN 21-XX (PARS)
OC SAN 21-XX (PFM)
Attachments:
INFORMATION ITEMS:
12.2021-1955HUMAN RESOURCES DEPARTMENT OVERVIEW
RECOMMENDATION:
Information Item.
Originator:Celia Chandler
Agenda Report
Presentation - HR Dept Update
Attachments:
DEPARTMENT HEAD REPORTS:
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY:
BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING:
At this time Directors may request staff to place an item on a future agenda.
Page 6 of 7
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 10, 2021
ADJOURNMENT:
Adjourn the meeting until the Regular Meeting of the Administration Committee on December
8, 2021 at 5:00 p.m.
Page 7 of 7
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1939 Agenda Date:11/10/2021 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 October 13, 2021.
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 21-04
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 October 13, 2021
Orange County Sanitation District Printed on 11/1/2021Page 1 of 1
powered by Legistar™
OC6SAN
ORANGE COUNTY SANITATION DISTRICT
Orange County Sanitation District
Minutes for the
ADMINISTRATION COMMITTEE
Wednesday, October 13, 2021
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 of the Orange County Sanitation District
was called to order by Committee Chairman Glenn Parker on Wednesday, October 13, 2021
at 5:01 p.m. in the Administration Building of the Orange County Sanitation District. Chair
Parker led the flag salute and stated that the meeting was being held telephonically and via
audio/video teleconferencing in accordance with Government Code Section 54953, due to the
Coronavirus Pandemic (COVID-19), and announced the meeting guidelines.
ROLL CALL AND DECLARATION OF QUORUM:
A quorum was declared present, as follows:
PRESENT:Glenn Parker, Anthony Kuo, Brad Avery, Art Brown, Kim Carr, Mark
Chirco, Marshall Goodman, Patrick Harper, Andrew Nguyen, David
Shawver, Chad Wanke and John Withers
ABSENT:Rose Espinoza
STAFF MEMBERS PRESENT: Clerk of the Board Kelly Lore and Mortimer Caparas were
present in the Board Room. General Manager Jim Herberg, Assistant General Manager
Lorenzo Tyner, Assistant General Manager Rob Thompson, Director of Engineering Kathy
Millea, Director of Environmental Services Lan Wiborg, Director of Human Resources Celia
Chandler, John Frattali, Tina Knapp, Laura Maravilla, Joshua Martinez, Robert Michaels,
Wally Ritchie, and Thomas Vu participated telephonically.
OTHERS PRESENT: Brad Hogin, General Counsel, and Ed Soong, Public Resources
Advisory Group, participated telephonically.
PUBLIC COMMENTS:
None.
REPORTS:
Chair Parker did not provide a report.
General Manager Jim Herberg provided a report on the recent oil spill off Huntington Beach
and its affects on the Ocean Monitoring program.
Page 1 of 4
OC ~SAN
ORANGE COUNTY SANITATION DISTRICT
ADMINISTRATION
COMMITTEE
Minutes October 13, 2021
CONSENT CALENDAR:
1.APPROVAL OF MINUTES 2021-1875
Originator: Kelly Lore
MOVED, SECONDED AND DULY CARRIED TO:
Approve Minutes of the Regular Meeting of the Administration Committee held
September 8, 2021.
AYES:Glenn Parker, Anthony Kuo, Brad Avery, Art Brown, Kim Carr, Mark
Chirco, Marshall Goodman, Patrick Harper, Andrew Nguyen, David
Shawver, Chad Wanke and John Withers
NOES:None
ABSENT:Rose Espinoza
ABSTENTIONS:None
2.MAXIMO MOBILE SOLUTION FOR WAREHOUSE 2021-1859
Originator: Lorenzo Tyner
MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Approve a Professional Services Agreement to Total Resource Management,
Inc. to provide a Maximo Mobile Solution, Specification No. CS-2021-1257BD,
for a total amount not to exceed $174,722; and
B. Approve a contingency of $26,208 (15%).
AYES:Glenn Parker, Anthony Kuo, Brad Avery, Art Brown, Kim Carr, Mark
Chirco, Marshall Goodman, Patrick Harper, Andrew Nguyen, David
Shawver, Chad Wanke and John Withers
NOES:None
ABSENT:Rose Espinoza
ABSTENTIONS:None
3.RENEWAL OF ESRI GIS ENTERPRISE LICENSE AGREEMENT
SUBSCRIPTION AND SUPPORT
2021-1862
Originator: Lorenzo Tyner
MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Page 2 of 4
ADMINISTRATION
COMMITTEE
Minutes October 13, 2021
A. Approve Amendment No. 2 of Agreement 334620 with Environmental Systems
Research Institute, Inc. for the renewal of the Sole Source GIS Enterprise
License Agreement, for a three-year period commencing December 31, 2021
through December 30, 2024, for a total amount not to exceed $382,000; and
B. Approve a not to exceed contingency of $19,100 (5%).
AYES:Glenn Parker, Anthony Kuo, Brad Avery, Art Brown, Kim Carr, Mark
Chirco, Marshall Goodman, Patrick Harper, Andrew Nguyen, David
Shawver, Chad Wanke and John Withers
NOES:None
ABSENT:Rose Espinoza
ABSTENTIONS:None
NON-CONSENT:
Vice-Chair Anthony Kuo appeared to be away during the vote for Item No . 4.
4.WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES
2022A
2021-1837
Originator: Lorenzo Tyner
MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Authorize the General Manager to issue new fixed rate Certificates of Participation, to
be referred to as Wastewater Refunding Revenue Obligations, in an amount sufficient
to refund (1) up to $100,645,000 of Wastewater Refunding Revenue Obligations,
Series 2012A and (2) up to $6,670,000 of Wastewater Refunding Revenue Obligations,
Series 2012B.
AYES:Glenn Parker, Brad Avery, Art Brown, Kim Carr, Mark Chirco,
Marshall Goodman, Patrick Harper, Andrew Nguyen, David Shawver,
Chad Wanke and John Withers
NOES:None
ABSENT:Anthony Kuo and Rose Espinoza
ABSTENTIONS:None
INFORMATION ITEMS:
5.HUMAN RESOURCES: RISK MANAGEMENT 2021-1887
Originator: Celia Chandler
Safety and Health Supervisor John Frattali provided a PowerPoint presentation
reviewing the core business functions of the Risk Management Division.
Page 3 of 4
ADMINISTRATION
COMMITTEE
Minutes October 13, 2021
ITEM RECEIVED AS AN:
Information Item.
DEPARTMENT HEAD REPORTS:
None.
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY:
None.
BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING:
None.
ADJOURNMENT:
Chair Parker declared the meeting adjourned at 5:51 p.m. to the next Administration
Committee meeting to be held on November 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 #:2021-1925 Agenda Date:11/10/2021 Agenda Item No:2.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
PROFESSIONAL RISK MANAGEMENT CONSULTANT AGREEMENT
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION:
Approve a sole source Professional Consultant Services Agreement with John J. Preston,
Specification No. SSJ 2468, to perform professional risk management consulting services for the
Orange County Sanitation District,which includes overseeing property and general liability loss
control and setting loss control requirements on public bids and contracts,risk transfer, loss
prevention, and risk reduction in an amount not to exceed $150,000 per year, for a term of one year
beginning December 1, 2021 through November 30, 2022; with up to two (2) one-year renewal
options.
BACKGROUND
The Orange County Sanitation District (OC San) entered into an agreement with John J. Preston in
December 2019 to provide risk management consulting services. Previously, OC San had
contracted with Keenan and Associates (Keenan) to provide these services. OC San had an existing
relationship with John J. Preston through Keenan providing risk management consulting services.
RELEVANT STANDARDS
·Commitment to safety & reducing risk in all operations
PROBLEM
The current agreement with John J. Preston ends on November 30, 2021. OC San will be without
professional risk management personnel during the evaluation of the program and its management
as of this date. This scenario will expose OC San to greater risk and potential liability.
PROPOSED SOLUTION
Approve a sole source Professional Consultant Services Agreement with John J. Preston in
accordance with Purchasing Ordinance No. OC SAN-56.
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OC6SAN
ORANGE COUNTY SANITATION DISTRICT
File #:2021-1925 Agenda Date:11/10/2021 Agenda Item No:2.
TIMING CONCERNS
The existing agreement ends November 30, 2021.
RAMIFICATIONS OF NOT TAKING ACTION
Potentially exposing OC San to risk and liability.
PRIOR COMMITTEE/BOARD ACTIONS
November 2019 -Approved a sole source Professional Consultant Services Agreement with John J.
Preston.
ADDITIONAL INFORMATION
Entering into a separate agreement with John J.Preston has provided a cost savings compared to
the contract with Keenan and allowed OC San to have greater direction and control of the services
provided.Mr.Preston is familiar with OC San,has exhibited a clear understanding of OC San
processes,and is well-versed in OC San operations.It would be in the best interest of OC San to
retain John J.Preston's services for risk management consulting needs to ensure business
continuity.Staff previously contacted risk management firms including Bickmore Risk Management
Consulting (Bickmore)and Marsh Risk Consulting (Marsh)to inquire about their risk management
services; however, Bickmore was unresponsive and Marsh does not provide the requested services.
CEQA
N/A
FINANCIAL CONSIDERATIONS
It is estimated that the cost for professional risk management consulting services will not exceed
$150,000.This request complies with authority levels of the OC San's Purchasing Ordinance.This
item has been budgeted in Division 220 Financial Management Professional 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
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Orange County Sanitation District 1 of 11 SSJ #2468
PROFESSIONAL CONSULTANT SERVICES AGREEMENT RISK MANAGEMENT LOSS CONTROL SERVICES AGREEMENT Specification No. SSJ #2468
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 "OC San") and John J. Preston with a principal place of business at 166 Fox Lane, Calimesa, CA 92320 (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, OC San desires to temporarily engage Consultant to provide risk management loss control services "Services” as described in Exhibit “B”; and WHEREAS, Consultant submitted its Proposal, and WHEREAS, on November 10, 2021, the Administration Committee of OC San, by minute order, authorized execution of this Agreement between OC San and Consultant; and WHEREAS, OC San has chosen Consultant to conduct Services in accordance with Ordinance No. OC SAN-56; and NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agree as follows: 1. Introduction 1.1 This Agreement and all exhibits hereto (called the "Agreement") is made by OC San and the Consultant. The terms and conditions herein exclusively govern the purchase of Services
as described in Exhibit “B”. 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” Not Used
Exhibit “B” Proposal Exhibit “C” Acknowledgement of Insurance Requirements Exhibit “D” Contractor Safety Standards
Exhibit “E” Human Resources Policies 1.3 In the event of any conflict or inconsistency between the provisions of this Agreement and any of the provisions of the exhibits hereto, the provisions of this Agreement shall in all respects govern and control. 1.4 This Agreement may not be modified, changed, or supplemented, nor may any obligations hereunder be waived or extensions of time for performance granted, except by written instrument signed by both Parties.
1.5 The various headings in this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any section or provision hereof.
Orange County Sanitation District 2 of 11 SSJ #2468
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 OC San observed holidays. Meetings with OC San staff shall be scheduled from Monday
through Thursday between the hours of 8 a.m. and 4 p.m. (exception is Operations staff who maintain plant operations 24/7 and work a rotated 12-hour shift) and shall conform to OC San work schedules. OC San review periods shall not include OC San observed holidays. 1.8 OC San 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 shall be scheduled Monday through Friday, between the hours of 7:30 a.m. and 5:30 p.m. OC San will not pay for travel time.
1.10 Consultant shall provide OC San 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, OC San 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 OC San. 2. Scope of Work Subject to the terms of this Agreement, Consultant shall perform the
Services identified in Exhibit “B”. 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 OC San 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 OC San and Consultant and the Agreement period adjusted accordingly.
4. Compensation Compensation to be paid by OC San to Consultant for the Services provided under this Agreement shall be a total amount not to exceed One Hundred Fifty Thousand Dollars ($150,000.00). 5. California Department of Industrial Relations (DIR)Registration and Record of Wages 5.1 To the extent Consultant’s employees and/or subconsultants who will perform work for
which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 et seq, Consultant and subconsultants shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to
Labor Code Section 1771.4, the work is subject to compliance monitoring and enforcement by the DIR. 5.2 The Consultant and subconsultants shall maintain accurate payroll records and shall comply
with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per
Section 1776.
Orange County Sanitation District 3 of 11 SSJ #2468
5.3 Pursuant to Labor Code Section 1776, the Consultant and subconsultants shall furnish a copy of all certified payroll records to OC San and/or general public upon request, provided
the public request is made through OC San, the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement of the Department of Industrial Relations.
5.4 The Consultant and subconsultants shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e).
6. Payment and Invoicing
6.1 OC San shall pay, net thirty (30) days, upon receipt and approval, by OC San’s Project Manager or designee, of itemized invoices submitted monthly for Services rendered in accordance with Exhibit “B”. OC San, at its sole discretion, shall be the determining party as to whether the Services have been satisfactorily completed. 6.2 Invoices shall be emailed by Consultant to OC San Accounts Payable at APStaff@OCSan.gov and “INVOICE” with the Purchase Order Number 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, OC San shall have access to and the right to examine any directly pertinent books, documents, and records of Consultant relating to the invoices
submitted by Consultant pursuant to this Agreement. 8. Commencement and Term The Services provided under this Agreement shall be for
the period of one (1) year commencing on December 1, 2021 and continuing through November 30, 2022.
9. Renewals 9.1 OC San may exercise the option to renew this Agreement for up to two (2) one-year periods, under the terms and conditions contained herein. OC San shall make no obligation to renew nor give reason if it elects not to renew. 9.2 This Agreement may be renewed by OC San Purchase Order. 10. Extensions The term of this Agreement may be extended only by written instrument signed
by both Parties. 11. Performance Time is of the essence in the performance of the provisions hereof.
12. Termination 12.1 OC San 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 OC San. Upon receipt of a termination notice, Consultant shall immediately discontinue all work under this Agreement (unless the notice directs otherwise). OC San 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 OC San from any further fee, cost or claim hereunder by Consultant other than for work performed to the date of termination.
Orange County Sanitation District 4 of 11 SSJ #2468
12.2 OC San reserves the right to terminate this Agreement immediately upon OC San’s determination that Consultant is not complying with the Scope of Work requirements, if the
level of service is inadequate, or any other default of this Agreement.
12.3 OC San may also immediately terminate for default of this Agreement in whole or in part by written notice to Consultant:
• if Consultant becomes insolvent or files a petition under the Bankruptcy Act; or
• if Consultant sells its business; or
• if Consultant breaches any of the terms of this Agreement; or
• if total amount of compensation exceeds the amount authorized under this Agreement.
12.4 All OC San property in the possession or control of Consultant shall be returned by Consultant to OC San on demand, or at the termination of this Agreement, whichever occurs first.
13. Indemnification and Hold Harmless Provision Consultant shall assume all responsibility for damages to property and/or injuries to persons, including accidental death, which may arise out of or be caused by Consultant's services under this Agreement, or by its subconsultant(s) or by anyone directly or indirectly employed by Consultant, and whether such damage or injury shall accrue or be discovered before or after the termination of the Agreement. Except as to the sole active negligence of or willful misconduct of OC San, Consultant shall indemnify, protect, defend and hold harmless OC San, 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 OC San, and with well qualified, adequately insured, and experienced legal counsel acceptable to OC San. This section shall survive the expiration or early termination of the Agreement. 14. Insurance Consultant and all subconsultants shall purchase and maintain, throughout the life of this Agreement and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Determined Insurance Requirement Form, Exhibit “C“. Consultant shall not commence work under this Agreement until all required
insurance is obtained in a form acceptable to OC San, 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.
Orange County Sanitation District 5 of 11 SSJ #2468
15. Key Personnel Personnel, as provided in Exhibit “B”, are considered “key” to the work under this Agreement and will be available for the term of the Agreement. No person
designated as key under this Agreement shall be removed or replaced without prior written consent of OC San. If OC San 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 OC San's request. Consultant shall assign only competent personnel to perform services pursuant to this Agreement.
16. Confidentiality and Non-Disclosure 16.1 Consultant acknowledges that in performing the Services hereunder, OC San may have to disclose to Consultant orally and in writing certain confidential information that OC San
considers proprietary and has developed at great expense and effort. 16.2 Consultant agrees to maintain in confidence and not disclose to any person, firm, or
corporation, without OC San's prior written consent, any trade secret or confidential information, knowledge or data relating to the products, process, or operation of OC San. 16.3 Consultant further agrees to maintain in confidence and not to disclose to any person, firm, or corporation any data, information, technology, or material developed or obtained by Consultant during the term of this Agreement.
16.4 Consultant agrees as follows:
• To use the confidential information only for the purposes described herein; to not reproduce the confidential information; to hold in confidence and protect the confidential information from dissemination to and use by anyone not a party to this Agreement; and to not use the confidential information to benefit itself or others.
• To restrict access to the confidential information to its subconsultant 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 OC San's request, whichever occurs first.
• To hold in confidence information and materials, if any, developed pursuant to the Services hereunder.
16.5 The provisions of this section shall survive termination or expiration of this Agreement and shall continue for so long as the material remains confidential.
17. Ownership of Documents All drawings, specifications, reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Consultant, its employees, subconsultants, and agents in the performance of this Agreement shall be the property of OC San and shall be promptly delivered to OC San upon request of OC San’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 OC San 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 OC San's sole risk and without liability to Consultant. Consultant shall ensure that all its
subconsultants shall provide for assignment to OC San of any documents or materials prepared by them.
Orange County Sanitation District 6 of 11 SSJ #2468
18. Ownership of Intellectual Property 18.1 Consultant agrees that all designs, plans, reports, specifications, drawings, schematics,
prototypes, models, inventions, and all other information and items made during the course of this Agreement and arising from the Services (hereinafter referred to as "New Developments") shall be and are assigned to OC San as its sole and exclusive property.
Consultant agrees to promptly disclose to OC San all such New Developments. Upon OC San's request, Consultant agrees to assist OC San, at OC San'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 OC San shall deem necessary to apply for and to assign or convey to OC San, 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. 18.2 Consultant warrants that Consultant has good title to any New Developments, and the right to assign New Developments to OC San free of any proprietary rights of any other party or
any other encumbrance whatever. 18.3 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 OC San. OC San may utilize these
documents for OC San applications on other projects or extensions of this project, at its own risk. 19. No Solicitation of Employees 19.1 Consultant agrees that it shall not, during the term of this Agreement and for a period of one (1) year immediately following termination of this Agreement, or any extension hereof, call on, solicit, or take away any of the employees whom Consultant became aware of as a result of Consultant's Services to OC San.
19.2 Consultant acknowledges that OC San’s employees are critical to its business and OC San expends significant resources to hire, employ, and train employees. Should
Consultant employ or otherwise engage OC San’s employees during the term of this Agreement and for a period of one (1) year following termination of this Agreement, Consultant will pay OC San fifty percent (50%) of the former employee’s most recent annual
salary earned at OC San to accurately reflect the reasonable value of OC San’s time and costs. This payment is in addition to any other rights and remedies OC San may have at law. 20. Independent Contractor Capacity 20.1 The relationship of Consultant to OC San is that of an independent contractor and nothing herein shall be construed as creating an employment or agency relationship. 20.2 Consultant shall act independently and not as an officer or employee of OC San. OC San 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.
Orange County Sanitation District 7 of 11 SSJ #2468
20.3 Consultant shall not be considered an agent of OC San for any purpose whatsoever, nor shall Consultant have the right to, and shall not, commit OC San to any agreement, contract or
undertaking. Consultant shall not use OC San’s name in its promotional material or for any advertising or publicity purposes without expressed written consent.
20.4 Consultant shall not be entitled to any benefits accorded to those individuals listed on OC San’s payroll as regular employees including, without limitation, worker's compensation, disability insurance, vacation, holiday or sick pay. Consultant shall be responsible for providing, at Consultant’s expense, disability, worker's compensation or other insurance as well as licenses and permits usual or necessary for conducting the Services hereunder.
20.5 Consultant shall be obligated to pay any and all applicable Federal, State and local payroll and other taxes incurred as a result of fees hereunder. Consultant hereby indemnifies OC San for any claims, losses, costs, fees, liabilities, damages or penalties suffered by OC San arising out of Consultant's breach of this provision.
20.6 Consultant shall not be eligible to join or participate in any benefit plans offered to those individuals listed on OC San'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 OC San misclassified Consultant for tax purposes.
21. Licenses, Permits Consultant represents and warrants to OC San that it has obtained all licenses, permits, qualification and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by Federal, State, County, City and/or
municipal laws, codes and/or tariffs that pertain to work performed under the terms of this Agreement will be paid by Consultant.
22. Consultant's Representations In the performance of duties under this Agreement, Consultant shall adhere to the highest fiduciary standards, ethical practices and standards of care and competence for their trade/profession. Consultant agrees to comply with all applicable Federal, State and local laws and regulations. 23. Familiarity with Work By executing this Agreement, Consultant warrants that: 1) it has investigated the work to be performed; 2) it has investigated the site of the work and is aware of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the
work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OC San, it shall immediately inform OC San of this and shall not proceed, except at Consultant’s risk, until
written instructions are received from OC San. 24. Right to Review Services, Facilities, and Records
24.1 OC San reserves the right to review any portion of the Services performed by Consultant under this Agreement, and Consultant agrees to cooperate to the fullest extent possible.
24.2 Consultant shall furnish to OC San such reports, statistical data, and other information pertaining to Consultant's Services as shall be reasonably required by OC San 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.
Orange County Sanitation District 8 of 11 SSJ #2468
24.3 The right of OC San to review or approve drawings, specifications, procedures, instructions, reports, test results, calculations, schedules, or other data that are developed by Consultant
shall not relieve Consultant of any obligation set forth herein.
25. Force Majeure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Agreement.
26. Severability If any section, subsection, or provision of this Agreement, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or
provision is held invalid, the remainder of this Agreement or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to
substantially frustrate the expectations of the Parties. 27. Waiver The waiver of either party of any breach or violation of, or default under, any provision of this Agreement, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Agreement or default thereunder. Any breach by Consultant to which OC San does not object shall not operate as a waiver of OC San’s rights to seek remedies available to it for any subsequent breach.
28. Remedies In addition to other remedies available in law or equity, if the Consultant fails to make delivery of the goods or Services or repudiates its obligations under this Agreement, or if OC San rejects the goods or Services or revokes acceptance of the goods or Services, OC San may (1) terminate the Agreement; (2) recover whatever amount of the purchase price OC San has paid, and/or (3) “cover” by purchasing, or contracting to purchase, substitute goods or Services for those due from Consultant. In the event OC San elects to “cover” as described in (3), OC San shall be entitled to recover from Consultant as damages the difference between the cost of the substitute goods or Services and the Agreement price, together with any incidental or consequential damages. 29. Governing Law This Agreement shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this Agreement or the performance thereof.
30. Environmental Compliance Consultant shall, at its own cost and expense, comply with all Federal, State, and local environmental laws, regulations, and policies which apply to the
Consultant, its sub-consultants, and the Services, including, but not limited to, all applicable Federal, State, and local air pollution control laws and regulations.
31. Attorney’s Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and
necessary disbursements in addition to any other relief to which it may be entitled. 32. Dispute Resolution
32.1 In the event of a dispute as to the construction or interpretation of this Agreement, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution
of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration
Orange County Sanitation District 9 of 11 SSJ #2468
Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity
conducting an alternate dispute resolution process.
32.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two (2) arbitrators shall select a third. Discovery may be conducted in connection with
the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter
in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal
from any judgment issued therein. 33. Damage to OC San's Property Any OC San property damaged by Consultant will be
subject to repair or replacement by Consultant at no cost to OC San. 34. Contractor Safety Standards and Human Resources Policies OC San requires Consultant and its subconsultants to follow and ensure their employees follow all Federal, State and local regulations as well as Contractor Safety Standards while working at OC San locations. If during the course of the Agreement it is discovered that Contractor Safety Standards do not comply with Federal, State or local regulations, then the Consultant is required to follow the most stringent regulatory requirement at no additional cost to OC
San. Consultant and all of its employees and subconsultants, shall adhere to all applicable Contractor Safety Standards attached hereto in Exhibit “D” and the Human Resources Policies in Exhibit “E”.
35. Freight (F.O.B. Destination) Consultant assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with
delivery of all products deemed necessary under this Agreement. 36. Assignments Consultant shall not delegate any duties nor assign any rights under this Agreement without the prior written consent of OC San. Any such attempted delegation or assignment shall be void.
37. Conflict of Interest and Reporting 37.1 Consultant shall at all times avoid conflicts of interest or appearance of conflicts of interest in performance of this Agreement.
37.2 Consultant affirms that to the best of its knowledge there exists no actual or potential conflict between Consultant’s families, business or financial interest or its Services under this Agreement, and in the event of change in either its private interests or Services under this Agreement, it will raise with OC San any question regarding possible conflict of interest which may arise as a result of such change. 38. Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OC San and Consultant.
Orange County Sanitation District 10 of 11 SSJ #2468
39. Non-Liability of OC San Officers and Employees No officer or employee of OC San
shall be personally liable to Consultant, or any successor-in-interest, in the event of any default or breach by OC San or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.
40. Authority to Execute The persons executing this Agreement on behalf of the Parties warrant that they are duly authorized to execute this Agreement and that by executing this
Agreement, the Parties are formally bound. 41. Read and Understood By signing this Agreement, Consultant represents that it has read
and understood the terms and conditions of the Agreement.
42. Entire Agreement This Agreement constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements,
understandings, and negotiations between the Parties with respect to the subject matter hereof.
Orange County Sanitation District 11 of 11 SSJ #2468
43. Notices All notices under this Agreement must be in writing. Written notice shall be delivered by personal service or sent by registered or certified mail, postage prepaid, return
receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Any facsimile notice must be followed within three (3) days by written notice. Rejection or other refusal to accept or the
inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses:
OCSD: Cori Voss, Senior Buyer Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Consultant: John J. Preston
166 Fox Ln Calimesa, CA 92320
Each party shall provide the other party written notice of any change in address as soon as practicable.
IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Agreement to be signed by the duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT
Dated: By: Glenn Parker Chair, Administration Committee
Dated: By:
Kelly A. Lore Clerk of the Board
Dated: By: Ruth Zintzun
Purchasing and Contracts Manager
JOHN J. PRESTON
Dated: By:
Print Name and Title of Officer CMM
EXHIBIT “A” SSJ #2468
Exhibit “A”
NOT USED
EXHIBIT “B” SSJ #2468
Exhibit “B”
CONSULTANT’S PROPOSAL
John Preston Risk
Loss Control &
Risk Management Consulting
A Risk Management / Loss Control
Proposal
For
Orange County Sanitation District
Presented by:
John J. Preston, DC, ALCM, ARM-P
Loss Control/Risk Management Consultant
166 Fox Ln
Calimesa, CA 92320
951.375.1636
PrestonRisk .com @gmail
John Preston would like to provide the Orange County Sanitation District with the services of a
part-time Consultant to work with the District to assist in fulfilling their Loss Control/Risk
Management needs. Dr. Preston proposes providing experienced Risk Management services to
fulfill OCSD needs in this regard by providing the Consulting Services outlined below.
Insurance Risk Transfer: Identifying reasonable and appropriate insurance types and
levels that can be used for public bids and contracts related to goods, services, and
construction. Working with insurance brokers to identify, procure, and administer
on insurance programs
Loss Prevention: Identifying risks that could adversely impact OCSD employees,
self-insurance programs
Risk Reduction: Administering, or coordinating with third parties to adjust
property/liability claims, ensuring that the appropriate forms are completed and
procedures followed, and recommending appropriate action to resolve claims
Serve as the property/casualty insurance liaison between OCSD and third party
administrators, brokers, insurance carriers, employees and the general public
Serve as a resource to employees and management on insurance and loss control issues,
attending mandatory settlement conferences, depositions, arbitrations and other legal
proceedings as appropriate. Facilitate claim review meetings and insurance audits.
Analyze data, prepare reports, and make appropriate recommendations to management
Fee Summary
John Preston proposes to provide the Orange County Sanitation District with the above
consulting services for the following fees: $1 per hour
The number of hours provided per week shall not exceed an average of 24, over a period of up to 12
months.
Fees include:
n and Scheduling
Commute Travel Time
-up Analytical Reports as requested
All Expenses Associated with these services are intended to help clients reduce their exposure to liability
and property losses. While I am confident that my services will help improve the control of losses, I do
not represent or guarantee that I will be able to offer a fail-safe mechanism for dealing with all loss
exposures. Consequently, I make no promise or representation that clients will recognize improved loss
experience or premium savings as a result of these services.
's
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property, liability, and excess workers' compensati
•
equipment, physical facilities, general public, and participants of OCSD's insurance and
•
•
•
•
36
• Professional Time
• Preparatio
•
• Follow
• Clerical Support/Word Processing
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1883 Agenda Date:11/10/2021 Agenda Item No:3.
FROM:James D. Herberg, General Manager
Originator: Lan C. Wiborg, Director of Environmental Services
SUBJECT:
OCEAN MODELING SUPPORT PROJECT
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve Amendment extending the Agreement between the Orange County Sanitation District
and Southern California Coastal Water Research Project regarding Ocean Outfall Plume
Modeling, to provide physical and biogeochemical modeling of the Orange County Sanitation
District’s ocean discharge, at a cost not to exceed $135,000, for a total amount not to exceed
$383,000;
B. Approve a contingency of 13,500 (10%); and
C. Approve an agreement performance period extension to December 31, 2024.
BACKGROUND
Under its ocean discharge permit and the California Ocean Plan, Orange County Sanitation District
(OC San) is required to conduct Strategic Process Studies (SPS) that address critical areas of
interest to OC San and its regulators and the public. One example is the change in discharge
effluent quality and quantity as a result of the final expansion of the Ground Water Replenishment
System (GWRS). In November 2018, a professional services agreement was awarded to the
Southern California Coastal Water Research Project (SCCWRP) to conduct high-resolution modeling
of our discharge before and after GWRS. This work supports required monitoring under our existing
permit and will provide insights to future monitoring needs under future permits.
The OC San agreement leveraged existing SCCWRP Ocean Acidification and Hypoxia (OAH)
modeling work being conducted for the entire California coast. One of the initial conclusions of the
OAH modeling effort was the need to better understand the time-based variability seen in modeling
runs. After thorough internal discussions and consultation with SCCWRP staff, OC San staff
concluded that it is essential to better understand the potential distribution of our effluent in the ocean
by looking at an expanded range of typical seasonal ocean conditions (Summer vs. Winter) as well
as larger-scale, regional conditions (El Niño vs La Niña). The increase in funding is attributed to the
additional model runs requested by OC San.
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OC6SAN
ORANGE COUNTY SANITATION DISTRICT
File #:2021-1883 Agenda Date:11/10/2021 Agenda Item No:3.
RELEVANT STANDARDS
·Ensure the public’s money is wisely spent
·Sustain 1, 5, 20-year planning horizons
·Comply with environmental permit requirements
·Maintain collaborative and cooperative relationships with regulators,stakeholders,and
neighboring communities
PROBLEM
OC San’s ocean discharge permit mandates that we meet state and federal environmental criteria.
Since OC San last modeled and characterized its discharge plume in the early 2000s,there have
been significant changes that have not been included in the modeling.
PROPOSED SOLUTION
Conduct high-resolution modeling of OC San’s ocean discharge to evaluate (1)changes in plume
dispersion based on effluent quality/quantity alone and (2)changes in plume dispersion under
varying ocean states.
The revised modeling runs will look at the following:
1. Model ability to determine changes due to expansion of GWRS and the resulting decrease in
ocean discharge.
2. Model ability to determine changes due to varying ocean conditions (e.g., El Niño vs La Niña).
TIMING CONCERNS
The existing Board approved agreement with SCCWRP expired on September 30, 2021.
RAMIFICATIONS OF NOT TAKING ACTION
The modeling of OC San’s ocean discharge as required by its ocean discharge permit may not
accurately reflect changes caused by increased flows to GWRS and varying ocean conditions.
Regulators would be relying on modeling of OC San’s ocean discharge that does not include up-to-
date effluent discharge characteristics and varying ocean conditions.
PRIOR COMMITTEE/BOARD ACTIONS
October 2018 -Approved a Service Agreement to the Southern California Coastal Water Research
Project (SCCWRP)to provide physical and biogeochemical modeling of the Orange County
Sanitation District’s ocean discharge for the period of October 1,2018 to September 30,2021,for a
total amount not to exceed $248,000, in a form approved by General Counsel.
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File #:2021-1883 Agenda Date:11/10/2021 Agenda Item No:3.
ADDITIONAL INFORMATION
N/A
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San’s Purchasing Ordinance.This item has been
budgeted.(Line item:Section 6,Page 48).Project contingency funds will not be used for this
amendment.
Date of Approval Contract Amount Contingency
10/24/2018 $248,000 N/A
11/17/2021 $135,000 $13,500
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
·Amendment to Agreement
·Original Agreement
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1629485.1
Amendment Extending the Agreement Between the Orange County Sanitation District and Southern California Coastal Water Research Project
Regarding Ocean Outfall Plume Modeling This Amendment (“Amendment”) Extending the Agreement Between the Orange County Sanitation District and Southern California Coastal Water Research Project Regarding Ocean Outfall Plume Modeling dated October 24, 2018 (the “Agreement”) is entered into by the Orange
County Sanitation District (“OC San”) and Southern California Coastal Water Research Project
(“SCCWRP”) as of November 17, 2021 on the terms described below. OC San and SCCWRP are referred to individually as a “Party” and collectively as “Parties.” Recitals
A. OC San requires the services of SCCWRP to model OC San’s ocean outfall plume, to provide environmental assessments of OC San’s existing and post-GWRS Final Expansion discharges, which assists to ensure compliance with Ocean Plan standards.
B. Per the Regional Water Quality Control Board, OC San is required to participate in
Bight’13, a large co-operative regional monitoring component, as a condition to OC San's NPDES ocean discharge permit. C. A coupled physical-biogeochemical model (ROMS-BEC) is used by SCCWRP in this
process. No other system exists for Bight’ 13 that can perform the level of resolution
needed for OC San staff and managers and local, state, and federal environmental managers to evaluate OC Sans existing and future ocean discharges to optimize OC San’s monitoring program in future permit renewal cycles.
D. SCCWRP is the lead agency, funded by the state and federal governments, which has
developed and applied ROMS-BEC to model present conditions and predict future conditions including investigations on the effect of anthropogenic nutrient inputs on ocean water quality.
E. Contracting with SCCWRP provides OC San with the opportunity to leverage outside
funds exceeding $4 million and create focused modeling to provide additional context and support for environmental impact assessment that will be readily accepted at both the state and federal level.
F. In light of the foregoing recitals, OC San and SCCWRP entered into the above-described
Agreement for an initial three-year term expiring November 18, 2021. G. OC San and SCCWRP, by this Amendment, wish to continue the Agreement for an additional term of approximately three years, through and including December 31, 2024.
Amendment Therefore, OC San and SCCWRP agree as follows:
2
1629485.1
1. Extension of Agreement. The Agreement is hereby extended through and including
December 31, 2024, unless sooner terminated.
2. Compensation. Additional compensation to SCCWRP under this Amendment shall not exceed One Hundred Thirty-Five Thousand Dollars ($135,000).
3. Scope of Work. During the term of this Amendment, and notwithstanding Paragraph
1 of the Agreement, SCCWRP will complete the following scope of work: (a) Validate ROMS simulations of the OC San modified outfall against available observations and conduct a model ensemble comparison with the RSB model.
(b) Utilize the validated ROMS model to investigate how different stages of GWRS operation alters the resulting wastewater plume visitation frequency and dispersal. (c) Investigate the effect of GWRS Final Expansion on seasonality of the plume
distribution with varying ocean conditions using realistic ROMS forcing between
1997 and 2017. (d) Synthesize the findings in a draft and final report, including recommendations for a suite of monitoring elements to assess dispersal of the effluent plume.
4. Prior Agreement Remains in Effect. All other terms of the Agreement shall remain in full force and effect. 5. Entire Agreement. The Agreement, as modified by this Amendment, constitutes the
entire understanding between the parties and supersedes all prior negotiations or
agreements between them pertaining to the subject matter hereof. IN WITNESS WHEREOF, these Parties have executed this Amendment on the day and year shown below.
[SIGNATURE PAGE FOLLOWS]
3
1629485.1
ORANGE COUNTY SANITATION DISTRICT
Date: __________________ By: _______________________________________
John B. Withers Chair, Board of Directors
ATTEST:
Date: __________________ By: ____________________________ Kelly A. Lore, MMC Clerk of the Board
APPROVED AS TO FORM:
Date:____________________ By: _____________________________ Bradley R. Hogin General Counsel
Date: _______________ SOUTHERN CALIFORNIA COASTAL WATER
RESEARCH PROJECT
By________________________________________
Name:_____________________________________
Title: _____________________________________
George Robertson
Environmental Compliance Services
Ocean Monitoring Program Division
Orange County Sanitation District
10844 Ellis Avenue, Fountain Valley, CA 92708
August 12, 2021
RE: “Outfall Plume Modeling in Support of Orange County Sanitation District Water Reclamation Study”
Dear Mr. Robertson:
This letter is to submit to you the revised project titled “Outfall Plume Modeling in Support of
Orange County Sanitation District Water Reclamation Study."
The proposed study would provide technical support to evaluate the impact of implementation of Groundwater Replenishment System (GWRS) Final Expansion on the dispersion of the effluent plume of Orange County Sanitation District Ocean outfall under differing ocean circulation regimes.
If you have any questions, please contact me at (714) 755-3222 or marthas@sccwrp.org.
Sincerely,
Martha Sutula, Ph.D.
Principal Scientist, Biogeochemistry Department
SoUTHERN CALIFORNIA CoASTAL W ATER RfsEARCH P ROJECT
A Public AgeHtiJ for E;mi;•o,;me11t11I Rese111·ch
Scope of Work
Outfall Plume Modeling in Support of Orange County Sanitation District Water
Reclamation Study
1. Introduction
Orange County Sanitation District (OC San) discharges approximately 100 million gallons
per day (MGD) of combined secondary and advanced primary treated wastewater from its outfall
located at 55 m depth and approximately 8.2 km (5.1 miles) offshore of the Huntington Beach
area, just north of the Santa Ana River. For the past 18 years, OC San and the Orange County
Water District (OCWD) have partnered to enable the Groundwater Replenishment System
(GWRS) to provide a drought-proof water supply for Orange County. OC San and OCWD have
started planning for the GWRS Final Expansion, which supports OC San’s strategic goal of
maximizing water recycling and OCWD’s goal to produce 130 MGD of purified recycled water.
By supporting the GWRS Final Expansion, OC San will be able to recycle the majority of the
wastewater generated in its service area and treated at its two wastewater treatment plants, thus
reducing the volume discharged to the ocean outfall. While volume discharges are reduced, the
mass loads of nutrient and other contaminants will stay constant, resulting in an effluent that is
higher in concentrations of these contaminants of concern.
This scope of work details technical support that the Southern California Coastal Water
Research Project Authority (SCCWRP) will provide to OC San to evaluate the impacts of
implementation of GWRS Final Expansion and ocean state on effluent plume transport and
dispersal.
Previous Work and Status of Ocean Modeling System
Two numerical modeling studies previously evaluated the nearfield mixing of the
wastewater plume and the transport and deposition of its particulate material (SAIC, 2002). The
Roberts-Snyder-Baumgartner (RSB) plume model was used to estimate time series of the
following characteristics of the nearfield wastewater plume: depth to the top and bottom of plume
and to the maximum concentration, the range of dilution of the plume, and the initial mixing length.
The RSB model was calibrated from empirical relationships and its velocities fields approximated
using observations from fixed level current meters, acoustic doppler current profilers (ADCPs),
and a dispersion map of the material released by the OC San outfall. The particle model used the
results of the nearfield model to estimate the vertical extent of the plume and combined this with
one year of current profiles measured near the diffuser and the actual local bathymetry to simulate,
and hence, estimate particle transport, settling and bottom accumulation of material having the
effective size classes that occurred in the wastewater plume. These modeling studies were based
on data collected in 1999-2000.
Previous studies have also used ocean model ROMS (Regional Ocean Model System)
simulations to assess the 3-dimensional dispersal and dilution of urban wastewater effluents from
subsurface outfalls for San Pedro and Santa Monica bays (Uchiyama et al., 2014) as well as Orange
County (Ho et al. 2017). UCLA has been leading the systematic development of the ROMS over
the past decade (Shchepetkin and McWilliams, 2003, 2005, 2008, 2011) with a specific focus on
the North American and South American West Coast regions (Marchesiello et al., 2003; Colas et
al., 2012). ROMS solves the hydrostatic, free-surface primitive equations in three-dimensional
(3D) curvilinear coordinates that exactly follow the bottom topography and coastline. It contains
state-of-art, numerical algorithms that provide an accurate and stable representation of physical
processes and allow for “nesting” of high-resolution sub-domains within larger domains. The
UCLA group has successfully tested ROMS in various applications to regional circulations with
strong upwelling and mesoscale eddies (Marchesiello et al., 2003; Capet et al., 2004, 2008; Dong
et al., 2009; Colas et al., 2013, Renault et al., 2016). The current ROMS configuration consists of
multiple nested model domains (Fig. 1) with an offline one-way nesting that downscales from 4
km horizontal resolution (USW4, green box in Fig. 1) of the U.S. West Coast with 60 vertical
levels (Deutsch et al., 2021; Renault et al., 2021) to 1 km resolution (USSW1, blue box in Fig. 1)
with 60 vertical levels for California state-wide (Kessouri et al., 2020), to 300m resolution
(USSW03, red box in Fig. 1) for the southern California Bight with 50 vertical levels (Kessouri et
al., 2021a, b) with a parameterization of point sources (Kessouri et al., 2021b; Sutula et al., 2021).
Each solution has a topography that follows levels vertically stretched such that grid cell
refinement occurs most strongly near the surface and the bottom.
Figure 1. ROMS new generation of nests in the U.S. West coast. Green box is the 4km
horizontal resolution grid (dx=4km), blue is dx=1km and red is dx=300m. (Kessouri et al 2021a,
b).
Study Goals
The updated ROMS becomes a key tool to investigate the dispersion of the OC San
wastewater plume as GWRS Final Expansion is implemented and to investigate the impact of
varying ocean climate condition on plume transport. The goals of the proposed work are two-fold:
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1) to provide an evaluation of the transport and fate of the plume and plume contaminants, based
on available data, using the ROMS model, and 2) recommend a suite of monitoring elements to
assess the impact of the modified effluent plume on ocean receiving waters in the context of
climate change and to serve as a basis for modifying future NPDES-permit required sampling.
Scope of Work
The proposed scope of work consists of three distinct work elements:
Task 1. Validate ROMS simulations of the OC San modified outfall against available observations
and conduct a model ensemble comparison with the RSB model.
Task 2. Utilize the validated ROMS model to investigate how different stages of GWRS
operation alters the resulting wastewater plume visitation frequency and dispersal.
Task 3. Investigate the effect of GWRS Final Expansion on seasonality of the plume
distribution with varying ocean conditions using realistic ROMS forcing between 1997
and 2017.
Task 4. Synthesize the findings in a draft and final report, including recommendations for a suite
of monitoring elements to assess dispersal of the effluent plume.
A detailed task description, including deliverables, is given below.
Task 1. Validate ROMS simulations of the OC San modified outfall against observational
data and conduct a model ensemble comparison with the RSB Model.
This task builds on the detailed validation of the ROMS model that is being conducted within the
nearshore zone of the Southern California Bight (SCB), including the region of the OC San outfall.
The purpose of this task is to utilize the observational data collected by SAIC in 1999-2000 and in
2007 to validate the model predictions of nearfield plume characteristics (nearfield wastewater
plume: depth to the top and bottom of plume and to the maximum concentration, the range of
dilution of the plume, and the initial mixing length) and the dispersion of wastewater contaminants,
utilizing the ROMS in particle tracking mode to estimate Lagrangian dispersal. A model ensemble
comparison will be made of the outputs of the ROMS model and SAIC models.
Deliverables:
Oral presentation of findings, with key graphs illustrating results of ROMS model validation
1. Electronic database of model output
2. Draft chapter summarizing findings
Task 2. Utilize the validated ROMS model to investigate how different stages of GWRS
operation alters the resulting wastewater plume visitation frequency and dispersal.
ROMS will provide outputs of velocities (horizontal, u and v, and vertical, w), temperature,
salinity, and density. An offline Lagrangian model will use these velocity fields to advect particles.
Details of the Lagrangian model can be found in Dauhajre et al., 2019.
Realistic hourly effluent discharge from the OC San outfall will be input to the model for each
scenario. We will also consider realistic discharge from other local outfalls and rivers in the SCB
(Sutula et al., 2021) for every scenario because they can interact with and influence the effluent
coming from OC San. Particles will be seeded in OC San effluent water masses to solely track its
movement.
The goals of this task are to: 1) simulate the transport and fate of the modified OC San effluent
plume with progressive stages of GWRS Final Expansion and to 2) explore the sensitivity of design
and operation of GWRS on the plume dispersion. We will use the Lagrangian plume particle
tracking tool to quantify plume visitation frequency over a period of 1 day and 3-days after release.
Plume visitation frequencies (Csanady 1983, SAIC 2002) will be mapped for 1-day plumes and 3-day plumes for all model simulations in Task 2 and 3.
· 1-day plumes are considered “fresh plume” with immediate close-to-outfall impacts and readily observable with CTD casts. The core monitoring program can reflect plume
extent within this period.
· 3-day plumes are more diluted and have been observed during weak currents. The primary reason for selecting 3-day duration is to identify potential public health concerns based on stormwater health guidelines during wet weather (e.g., Arnold et al, 2017). · Bacterial concentrations can be approximated based on particle density per grid cell.
The hourly GWRS discharge of the following phases will be simulated during the ocean base year
2000:
i. Pre-GWRS (2000)
ii. GWRS Phase 1 (2008)
iii. GWRS Initial Expansion (2016)
iv. GWRS Final Expansion (estimated discharge for 2023)
The ocean base year 2000 is chosen because this year represents average conditions and no climate events. El Nino Southern Oscillation (ENSO) and Pacific Decadal Oscillation (PDO) are neutral. Sea surface temperature and the mixed layer depth (MLD) are average. This scenario will be completed in Task 2.
The plume statistical heatmaps will be applied on three seasons during the year 2000: winter
(January/February) to characterize well mixed conditions, upwelling season (typically May/June, but may vary) to capture the maximum contribution of the vertical motion from upwelling, and summer (July/August) to characterize the most stratified season. These periods have been derived from in situ OC San monitoring (Fig. 2) and ROMS-BEC modeling results (BEC was only used to identify the impact on productivity; as an example of nitrogen utilization, like a
passive indicator that is impacted by different climate phases, Fig 4 (supporting information).).
Figure 2. Monthly climatology of observed temperature and density profiles. Provided by OC San.
The suite of scenarios of interest, the final list of parameters assessed with environmental impact,
and sensitivity analyses prioritized will be identified in a work plan, revised from the 2018 version
based on discussions with the OC San project manager. Work will proceed once the revised work
plan has been approved by the OC San project manager.
Deliverables:
2.1. Revised workplan outline agreed upon scenarios, plume visitation duration, and key graphics.
2.2. Oral presentation of findings, with key graphs illustrating results of ROMS model plume
visitation frequency.
2.3 Electronic database of model output
2.4 Draft chapter summarizing findings
Task 3. Investigate the effect of GWRS Final Expansion on seasonality of the plume
distribution with varying ocean conditions using realistic ROMS forcing between 1997 and
2017.
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Fate of the OC San effluent plume will depend on ocean circulation that has inherent seasonal and interannual variability. The goal of this task is to simulate climate variability in the ocean and
atmosphere and the effect that it has on plume dispersion. To understand this variability and serve as the basis for selecting scenarios, we analyzed a 21-year simulation of California coastwide ROMS to capture the wide range of variability in water masses and ocean circulation as well as multiple warming and cooling phases (Trenberth K. E., et al. 2007) that will have potentially important impacts on mass transport of the plume. We selected multiple ocean base years (Table
1) to run the experiments from this simulation.
The modeling experiment will follow the methodology utilized in Task 2 (each ocean base year will simulate 3 seasons) in order to characterize the full range of variability for every climate period. Plume visitation frequencies will also be calculated in this task. Therefore, our analyses will cover a range of climate phases to understand the effect on ocean circulation and plume
dispersion (Table 1, with additional detail in Appendix 1 and Fig. 3-4).
Table 1. List of climate variability simulations. Abbreviations are as follows: El Nino Southern
Oscillation (ENSO); Pacific Decadal Oscillation (PDO); mixed layer depth (MLD), North Pacific
Gyre Oscillation (NPGO), California Current System (CCS).
Scenario Base Year Period (M-M / YYYY) Ocean climate conditions Season
Task 2
1 1-2 / 2000 Neutral climate signals Average temperature and MLD Winter
5-6 / 2000 Upwelling
7-8 / 2000 Summer
Task 3
2 11-12 / 1997 Negative to neutral NPGO Positive PDO Positive ENSO (El Niño, very strong) Deep MLD
Max (ENSO) Fall 97
1-2 / 1998 Winter [most mixed]
5-6 / 1998 Upwelling
7-8 / 1998 Summer [most stratified]
3 1-2 / 1999 Positive NPGO
Negative PDO Negative ENSO (La Niña, very strong) Deep MLD
Winter
5-6 / 1999 Upwelling
7-8 / 1999 Summer
4 1-2 / 2004 Neutral climate signals Warm Weak ocean transport
Winter
5-6 / 2004 Upwelling
7-8 / 2004 Summer
5 1-2 / 2008 Positive NPGO Negative PDO
Neutral ENSO Cold and shallow MLD
Winter
5-6 / 2008 Upwelling
7-8 / 2008 Summer
6 1-2 / 2009 Positive NPGO
Neutral PDO
Winter
5-6 / 2009 Upwelling
7-8 / 2009 Summer
Transition to a quick positive ENSO event (El Niño)
Cold and shallow MLD
7 7-8 / 2014 Strong marine heatwave Neutral climate signal Summer
8 1-2 / 2015 Strong marine heatwave Negative NPGO
Positive ENSO (El Niño) starting
in summer Positive PDO Deep MLD
Winter
5-6 / 2015 Upwelling
7-8 / 2015 Summer
9 1-2 / 2016 Marine heatwave
Neutral NPGO
Positive (winter) to negative (summer) ENSO and PDO
Winter
5-6 / 2016 Upwelling
7-8 / 2016 Summer
Task 4. Synthesize findings in a technical report, including recommendations for a suite of
monitoring elements to assess the environmental impact of the effluent plume
The results of Task 1 and 2 will be synthesized into a draft report, which may include an executive
synthesis, an appendix with a draft manuscript for publication in a peer-reviewed journal, plus
supplemental or supporting information. The report will include a suite of recommended
monitoring elements needed to characterize environmental impact of the modified plume in the
future. The draft report will be submitted to the OC San project manager. OC San feedback on the
report will be addressed and a final report submitted.
Deliverables:
3.1. Draft technical report.
3.2. Final technical report
Schedule of Milestones and Deliverables
Item DESCRIPTION ESTIMATED DUE DATE
Project Administration
A1. quarterly reports of progress and obstacles quarterly
Task 1 Model validation
1.1 Oral presentation of findings, with key graphs illustrating results
of ROMS model validation
Completed
1.2 Electronic database of model output Completed
1.3 Draft chapter in technical report documenting model validation Completed
Task 2 Apply ROMS to quantify GWRS Final Expansion dispersal
2.1 Oral presentation of findings, with key graphs illustrating visitation frequency on 1 and 3 days and results of sensitivity analyses
12 months
2.2 Electronic database of model output 18 months
2.3 Draft chapter in technical report documenting model application to assess environmental impact 18 months
Task 3 Investigate the effect of GWRS Final Expansion on seasonality of the plume distribution
with constant discharge varying ocean conditions
3.1 Key findings and illustrations 24 months
3.2 Electronic database of model output 24 months
3.3 Draft chapter on range of variability of plume dispersal over two decades 24 months
Task 4 Draft and final technical report
4.1 Draft technical report, including recommendations for
monitoring
30 months
4.2 Final technical report 34 months
3.0 Budget
Task budget. Task 1 is complete. Remaining project funds will cover Task 2 with existing funds. An augmentation of $135,000 is requested to complete Tasks 3 and 4.
Task 1 Model validation1 $0
Task 2 Apply ROMS to quantify GWRS Final Expansion dispersal $75,000
Task 3 Investigate the effect of GWRS Final expansion on seasonality of the
plume distribution with constant discharge varying ocean conditions
$105,000
Task 4 Draft and final technical report $30,000
Total $210,000
1Work is 100% complete
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Line-Item Budget. The line-item budget provides the costs of Tasks 2-4.
A. Personnel 2021-22 2022-23 2023-2024
Position Title Rate Hours Amount Hours Amount Hours Amount Total
Principal Scientist $ 77.89 40 $ 3,116 40 $ 3,209 20 $ 1,605
Senior Scientist $ 55.60 120 $ 6,672 120 $ 6,872 40 $ 2,291
Scientist $ 44.84 320 $ 14,349 320 $ 14,779 160 $ 7,390
Total Personnel: 480 $ 24,136 480 $ 24,860 220 $ 11,285 $ 60,282
B. Fringe Benefits $ 12,505 $ 12,880 $ 5,847 $ 31,232
(51.81% of personnel services)
C. Operating Expenses $ 3,500 $ 3,500
publication costs $ 3,500
D. Equipment $32,028 $ - $ - $32,028
Computer server computing nodes $30,000 $ - $ -
Storage $2,028
D. Travel $ - $ 4,000 $ - $ 4,000
Conference travel- Ocean Sciences Meeting
2 person attending 1 conference $ 4,000
E. Subcontracts $ -
F. Indirect Costs $ 31,614 $ 32,563 $ 14,781 $ 78,958
(86.28% of personnel & fringe benefits)
Total Contract $ 100,284 $ 74,303 $ 35,413 $ 210,000
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4.0 References Cited
Arnold BF, Schiff KC, Ercumen A, Benjamin-Chung J, Steele JA, Griffith JF, Steinberg SJ,
Smith P, McGee CD, Wilson R, Nelsen C. Acute illness among surfers after exposure to
seawater in dry-and wet-weather conditions. American journal of epidemiology. 2017 Oct
1;186(7):866-75.
Colas, F., J.C McWilliams, X. Capet, and J. Kurian, 2012: Heat balance and eddies in the Peru
Chile Current System. Climate Dynamics 39, 509-529.
Colas, F., X. Capet, J.C McWilliams, and Z. Li, 2013: Mesoscale eddy buoyancy flux and eddy
induced circulation in eastern-boundary currents. J. Phys. Ocean. 43, 1073-1095.
Csanady, G.T., 1983. Dispersal by randomly varying currents. Journal of Fluid Mechanics 132,
375-394.
Dauhajre, D. P., McWilliams, J. C., & Renault, L. (2019). Nearshore Lagrangian connectivity:
Submesoscale influence and resolution sensitivity. Journal of Geophysical Research: Oceans, 124,
5180–5204. https://doi.org/10.1029/2019JC014943
Deutsch, C, W. Berelson, R. Thunell, T. Weber, C Tems, J. McManus, J. Crusius, T. Ito, T.
Baumgartner, V. Ferreira, J. Mey, A. van Geen, 2014. Centennial changes in North Pacific anoxia
linked to tropical trade winds, Science, 345(6197), 665-668.
Dong, C, E.Y. Idica, and J.C. McWilliams, 2009: Circulation and multiple-scale variability in the
Southern California Bight. Prog. Oceanography 82,168-190.
Ho M., Dauhajre D., Kessouri F., Bianchi D., McWilliams. J.C. 2017. Net primary production
from nitrate and ammonium from wastewater effluent using Lagrangian metrics. Undergraduate
Report, UCLA.
Kessouri F, Bianchi D, Renault L, McWilliams JC, Frenzel H, Deutsch CA. Submesoscale
currents modulate the seasonal cycle of nutrients and productivity in the California Current
system. Global Biogeochemical Cycles. 2020 Oct;34(10):e2020GB006578.
Kessouri F, McWilliams JC, Bianchi D, Sutula M, Renault L, Deutsch C, Feely RA, McLaughlin
K, Ho M, Howard EM, Bednaršek N. Coastal eutrophication drives acidification, oxygen loss,
and ecosystem change in a major oceanic upwelling system. Proceedings of the National
Academy of Sciences. 2021 May 25;118(21).
Kessouri F, McLaughlin K, Sutula MA, Bianchi D, Ho M, McWilliams JC, Renault L,
Molemaker J, Deutsch CA, Leinweber A. Configuration, and validation of an oceanic physical
and biogeochemical model to investigate coastal eutrophication: case study in the Southern
California Bight.
Marchesiello, P., J.e. McWilliams, and A. Shchepetkin, 2003: Equilibrium structure and dynamics
of the California Current System, J. Phys. Ocean. 33), 753-783.
Oliver, E. C. J. Mean warming not variability drives marine heatwave trends. Climate Dynamics, 53, 1653-1659, doi: 10.1007/s00382-019-04707-2, 2019.
SAIC, 2002. Nearfield and Particle Tracking Model Report. Prepared for Orange County
Sanitation District.
Shchepetkin, A.F., and J.c. McWilliams, 2003: A method for computing horizontal
pressuregradient force in an ocean model with a non-aligned vertical coordinate. J. Geophys. Res.
108,35.1-35.34.
Shchepetkin, A.F., and J.c. McWilliams, 2005: The Regional Oceanic Modeling System (ROMS):
split-explicit, free-surface, topography-following-coordinate oceanic model. Ocean Modelling
9,347-404.
Shchepetkin, A.F., and J.c. McWilliams, 2008: Computational kernel algorithms for fine scale,
multiprocess, longtime oceanic simulations. In: Handbook of Numerical Analysis: Computational
Methods for the Ocean and the Atmosphere, R Temam & J. Tribbia, eds., Elsevier Science, 119-
181.
Shchepetkin, A.F., and J.C McWilliams, 2011: An accurate Boussinesq modeling with a practical,
"stiffened" equation of state. Ocean Modelling 38, 41-70.
Sutula M, Ho M, Sengupta A, Kessouri F, McLaughlin K, McCune K, Bianchi D. A baseline of
terrestrial freshwater and nitrogen fluxes to the southern california bight, usa. Marine Pollution
Bulletin. 2021 Sep 1;170:112669.
Trenberth KE, Jones PD, Ambenje P, Bojariu R, Easterling D, Klein Tank A, Parker D,
Rahimzadeh F, Renwick JA, Rusticucci M, Soden B. Observations. Surface and atmospheric
climate change. Chapter 3.
Uchiyama, Y., J.C McWilliams, and A.F. Shchepetkin, 2010: Wave-current interaction in an
oceanic circulation model with a vortex-force formalism: Application to the surf zone. Ocean
Modelling 34, 16-35.
Supporting figures
Figure 3: Upper panel: climate index in the North Pacific Ocean (NOAA). Lower panel: multi-annual
anomalous average temperature in the SCB. Seasonal variability is excluded.
EJ Nino 1-/ POO-POO, ENSO+ I.a Nino-3 , ---~ V
-=,1
~
0 C ~
~ • • ;:J
•
....
·:L ' ~
~ ~ .,__,_ • ~ ~ "-., .. .. .. 01 ., 83 "'tS .. ., .. .. !I ll u ll ,. 15 16 11 ..
• • •10 15
·20
l ,JO
g .... 0.5 V
.c ..
J 50 !!
0 il' 0 'O ~ ., . -0.5
..., ·l ·-2COO 2002 -2006 1008 2010 2012 20l4 2016
Yoars
Figure 4: Upper panel: ocean surface temperature. Middle panel: phytoplankton biomass integrated
vertically. Lower panel: depth of the mixed layer. All panels express averages over Orange County coast
(coast to 80km offshore, between Newport and Seal Beach). Black line is a 7-day Gaussian filter and red
curve is a seasonal Gaussian filter.
Warm/cold
18
u
Warm Warm
V 'J I \I
V 111
1' \I v '' 11 u V V u~~~~~~~~~~~~~~~-~~~~-
!17 98 99 88 81 82 83 94 85 86 87 fi8 89 lt 11 12 13 ]A 15 16 17 18
Low/high . ,.
I-~ •'I { ~ r.
low High
I
, } IJ ' '
!,i I I
I
Lew .
n
n ,
1-'i
\~ ~ I ii ) ~I I/ J V I~ ~
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" -' '. let
NHMet~~~~HMNetff18JJUUl■Ul60l8
V.Deep
~ .3tl .. ! _.., I
9 ' ~ .s,e~ ...
--
I '
Appendix 1. Additional detail on ocean base years that support selection of scenarios (also see the supporting Fig. 4 to illustrates surface temperature, mixed layer, nutrients utilization with respect
to various climate phases).
Ocean Base Year Rationale
1997-1999: The water column changes from intense warming and stratification to rapid cooling and mixing. Between the fall 1997 and summer 1998, the ocean was nutrient-poor, during which the thermocline was quite deep (> 60 m on average), but 1999 was one of the most productive years in the last 20 years, so conditions
were antagonistic among these years.
2000 This year represents average conditions and no climate events. El Nino Southern
Oscillation (ENSO) and Pacific Decadal Oscillation (PDO) are neutral. Sea surface temperature and the mixed layer depth (MLD) are average. This scenario will be completed in Task 2. 2004 The ensemble ENSO-PDO-NPGO (North Pacific Gyre Oscillation) signal was insignificant for the entire year, and yet it was a warm year, poor in nutrients and planktonic production. This year is characterized by weak winds and weak oceanic transport potentially caused by the slowing down of the activity of the
California Current System (CCS). The reverse cycle happens four years later (see
below). 2008: This is a cold, nutrient-rich, and very productive year. PDO is negative and
NPGO is positive which causes intense dynamic CCS activity and shallow MLD. During positive NPGO, activity of the tropical and the subpolar gyre is intensified and affects the CCS (Joh and Di Lorenzo 2017, Di Lorenzo et al 2008). Vertical velocities (and fluxes) are also more intense. 2009 The SCB experienced a high positive NPGO, an El Nino, and an insignificant PDO. This year was cool, moderately productive (nitrate flux was mild), and had a shallow MLD
2014 This year marked the beginning of the 2014-2016 heatwave. Climate indices PDO, NPGO, and ENSO were all insignificant for a brief winter/spring. We will run the summer period only because winter and spring have similar conditions as
2004 (see #3). However, summer is under the effects of a marine heatwave, causing some of the highest temperature anomalies outside of El Niño periods. 2015 Winter of 2015 is the warmest winter between 1997-2017 because of the
heatwave. As marine heatwaves are expected to increase in frequency with climate change (Oliver 2019), understanding the plume transport under these events is necessary for future monitoring. The summer of 2015 is under the effects of both the heatwave and El Niño. The interest to study this period is to
compare with the El Niño of 1998/1999, in which a heatwave was absent (Figure
3, lower panel).
2016 This period represents the end of the most recent El Nino season, which also coincided with a prolonged heatwave. The reasons to analyze this year is to
compare to the aftermath of the 1999/1999 El Niño and quantify the consequences of the heatwave combined with El Nino on the water masses.
Agreement Between the Orange County Sanitation District and
So uthern California Coastal Water Research Project
Regarding Ocean Outfall Plume Modeling
This agreement for the services to Orange County Sanitation District ("OCSD") by
Southern California Coastal Water Research Project (" CCWRP") for Ocean Outfall Plume
Modeling, dated October 17\4 , 2018 ("Agreement") is entered into by OCSD and SCCWRP
on the terms described below. OCSD and CCWRP are referred to individually as a '·Party" and
collectively as "Parties''.
Recitals
A. OCSD requires the services of SCCWRP to model OCSD's ocean outfall plume, to
provide environmental assessments of OCSD's existing and post-GWRS Final Expansion
discharges, which assists to ensure compliance with Ocean Plan standards.
B. Per the Regional Water Quality Control Board OCSD is required to participate in
Bight' 13 , a large co-operative regional monitoring component, as a condition to OCSD's
PDES ocean discharge permit.
C. A coupled phys ical-biogeochemical model (ROMS-BEC) will be used by SCCWRP in
this process. No other system exists for Bight' 13 that can perform the level of resolution
needed for OCSD staff and managers and local, state, and federal environmental
managers to evaluate OCSD's existing and future ocean discharges to optimize OCSD's
monitoring program in future permit renewal cycles.
D. SCCWRP is the lead agency, funded by the state and federal governments, which has
developed and applied ROMS-BEC to model present conditions and predict future
conditions including investigations on the effect of anthopogenic nutrient inputs on ocean
water quality.
E. Contracting with SCCWRP provides OCSD with the opportunity to leverage outside
funds exceeding $4 million and create focused modeling to provide additional context
and support for environmental impact assessment that will be readily accepted at both the
state and federal level.
Agreement
Therefore. OCSD and SCCWRP agree as follows:
1. Over the course of the next three years, SCCWRP will complete the fo llowing scope
of work:
135084 1.1
(a) Validate RO Ms-BED simulations of the OCSD modified outfall against
available observations and conduct a model ensemble comparison with the
R B model.
(b) Utilize the validated ROMs-BEC model to quantify the environmental
impacts of the G WRS Final Expansion and investigate how the design and
operation mitigates the degree of impact of the resulting wastewater plume.
(c) Synthesize the findings in a draft and final report, including recommendations
for a suite of monitoring elements to assess environmental impact of the
effluent plume.
2. Compensation under this agreement shall not exceed Two Hundred and Forty-Eight
Thousand and 00/00 Dollars ($248,000).
3. The term of this agreement shall be from the date OCSD issues a notice to proceed to
SCCWRP and continue for a period of up to three (3) years unless sooner terminated.
4. Insurance.
1350841.1
a. General Provisions. SCCWRP shall purchase and maintain, for the duration of
the Agreement, insurance against claims for injuries to persons, or damages to
property which may arise from or in connection with the services which will be
performed under this Agreement by SCCWRP, its agents, representatives,
employees, and/or subcontractors, in amounts equal to the requirements set forth
below. SCCWRP shall not commence or continue its services under this
Agreement until all insurance required under this Section is obtained in a form
acceptable to OCSD. SCCWRP shall maintain all of the foregoing insurance
coverages in force until this Agreement is terminated. The requirement for
carrying the foregoing insurance shall not derogate from the SCCWRP's
indemnification obligations. otwithstanding nor diminishing the obligations of
SCCWRP with respect to the foregoing, SCCWRP shall subscribe for and
maintain in full force and effect during the life of this Agreement, the following
insurance in amounts not less than the amounts specified. OCSD reserves the
right to amend the required limits of insurance commensurate with SCCWRP's
risk at any time.
b. Worker's Compensation. SCCWRP shall provide such Worker's Compensation
Insurance as required by the Labor Code of the tate of California, including
employer's liability with a statutory minimum limit of One Million ($1,000,000)
Dollars per accident for bodily injury or disease. Such Worker's Compensation
Insurance shall be endorsed to provide for a waiver of subrogation against OCSD.
c. General Liability. SCCWRP shall maintain in full force and effect, throughout
the term of this Agreement, standard industry form insurance coverage in an
amount of not less than one million ($2,000,000) dollars per occurrence for bodily
injury, personal injury and property damage. If Commercial General Liability
Insurance, or other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project/location, or the general
aggregate limit shall be twice the required occurrence limit.
2
I 350841 I
d. Errors and Omissions. SCCWRP shall maintain in full force and effect,
throughout the term of this Agreement, standard industry form professional
negligence errors and omissions insurance coverage in an amount of not less than
one million ($1,000,000) dollars per claim or occurrence. If the policy of
insurance is written on a "claims made" basis, said policy shall be continued in
full force and effect at all times during the term of this Agreement, and for a
period of five ( 5) years from the date of the completion of the services hereunder.
In the event of termination of said policy during this period, SCCWRP shall
obtain continuing insurance coverage for the prior acts or omissions of SCCWRP
during the course of performing services under the terms of this Agreement. Said
coverage shall be evidenced by either a new policy evidencing no gap in coverage
or by obtaining separate extended "tail" coverage with the present or new carrier.
In the event the present policy of insurance is written on an "occurrence" basis,
said policy shall be continued in full force and effect during the term of this
Agreement, or until completion of the services provided for in this Agreement,
whichever is later. In the event of termination of said policy during this period,
new coverage shall be obtained for the required period to insure for the prior acts
of SCCWRP during the course of performing services under the terms of this
Agreement.
e. Additional Insurance Requirements.
(i) Certificates of Insurance. SCCWRP shall provide to OCSD a certificate of
insurance in a form acceptable to OCSD indicating the deductible or self-
retention amounts and the expiration date of said policy, and shall provide
renewal certificates not less than ten ( 10) days prior to the expiration of each
policy term.
(ii) Notice of Cancellation/Termination of Insurance. The above policy/policies
of insurance shall not terminate, nor shall they be canceled, nor the coverage
reduced, until after thirty (30) days' written notice is given to OCSD, except
that ten (10) days' notice shall be given if there is a cancellation due to failure
to pay a premium.
(iii)Proof of Insurance Requirements. SCCWRP shall submit the certificate of
insurance, including the deductible or self-retention amount, to OCSD's
Insurance Administrator for certification that the insurance requirements of
this Agreement have been satisfied prior to commencement of any work under
this Agreement.
3
5. Indemnification.
SCCWRP 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
SCCWRP's services under this Agreement, or by its subcontractor or by anyone
directly or indirectly employed by SCCWRP, and whether such damage or injury
shall accrue or be discovered before or after the termination of the Agreement.
Except as to the sole active negligence of or willful misconduct of OCSD,
SCCWRP 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 SCCWRP'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 ofSCCWRP of or anyone employed by or working under SCCWRP. To the
maximum extent permitted by law, SCCWRP'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. SCCWRP 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.
6. This Agreement may be terminated by either party at any time for any reason or no
reason without penalty with a minimum of 3 months' notice. If SCCWRP terminates
the Agreement it is anticipated that it would take OCSD at least this time period to
make alternative arrangements.
7. Nothing in this Agreement shall be construed to give any rights or benefits to anyone
other than OCSD and SCCWRP.
8. The relationship of SCCWRP to OCSD is that of an independent contractor and
nothing herein shall be construed as creating an employment or agency relationship.
[SIGNATURE PAGE FOLLOWS]
4
1350841.1
IN WITNESS WHEREOF, these Parties have executed this Agreement on the day and
year shown below.
Date:
APPROVED AS TO FORM:
Brad /t4/fi-"11
General Counsel
Date: ID/ 30 / l Z: , 2018
1350841.1
ORANGE COUNTY SANITATION DISTRICT
By c:;~-77 Gregory~LS
Board Chairman
Southern California Coastal Water Research Project
By __ ~~------
Name: _5.=:.....;·-1t.'---'~f'F-'/4....L::.e.....,_4----'(3"'-"-'''--V<=-=.ce;-=-'s-=kGL.\v➔7-r-'-~---'-½,....,_.,£)=;._, __
Title: ~/-><~e~C~V~l;~(~[)-l-~!J~1~~~t",~Ll~/4-~p,,,------
--
5
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1942 Agenda Date:11/10/2021 Agenda Item No:4.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
REPROGRAPHICS AND DOCUMENT SERVICES FOR PREVIOUSLY CONSTRUCTED
PROJECTS
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION:
A. Authorize a Purchase Order Contract with ARC Document Solutions, LLC for document
scanning, indexing, and hyperlinking services per County of Orange Master Contracts #RCA
MA-017-16010366, for an amount not to exceed $125,000; and
B. Approve a contingency of $15,000.
BACKGROUND
As part of the General Manager’s FY 2021-22 Work Plan for a paperless office and in preparation for
staff to move to the new Orange County Sanitation District (OC San) Headquarters building, there is
a need to make the electronic engineering drawings more efficient to navigate. Currently, access to
paper engineering drawings is available. Once the Headquarters building is completed, these paper
documents will be moved to offsite storage, making them difficult to access.
To efficiently navigate the electronic engineering drawings, technology known as hyperlinking is used
to make navigation more efficient. Hyperlinking makes it quick and easy to move from one location in
a file or page to another by clicking on a link. This technology is currently being used for new and
recently completed projects, but there is a need to implement this on a portion of important past
projects. All of the digital files will also be incorporated into Laserfiche, OC San’s new trusted
system.
RELEVANT STANDARDS
·Participate in local, state, and national cooperative purchasing programs
·Ensure the public’s money is wisely spent
·Protect OC San assets
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OC6SAN
ORANGE COUNTY SANITATION DISTRICT
File #:2021-1942 Agenda Date:11/10/2021 Agenda Item No:4.
PROBLEM
Efficient and easy access to the drawings is necessary to plan construction and conduct
maintenance.Due to the limited storage space at the new Headquarters building,the physical/hard
copy paper engineering drawings cannot be moved there.
PROPOSED SOLUTION
Staff recommends authorizing a purchase order to ARC Document Solutions,LLC for the document
services to hyperlink a strategic selection of previously constructed projects for quick and easy
access.
TIMING CONCERNS
All the identified engineering drawings need to be indexed and hyperlinked before completion of the
new OC San Headquarters building.The scopes of work for current and future projects have been
updated for this new procedure.
RAMIFICATIONS OF NOT TAKING ACTION
Documents that are not indexed and hyperlinked before moving to the new Headquarters building will
remain in the current file format and will not be readily accessible to staff in assisting the planning of
future construction or maintenance.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
Pricing is based on a competitively bid/negotiated Regional Cooperative Agreement (RCA)for
Reprographic Services.This contract is available for use in accordance with the terms and
conditions and scope set forth.
OC San possesses the ability to purchase materials,services,and equipment through cooperative
agreements.These cooperative agreements tend to lower unit prices and streamline the purchasing
process and are in accordance with OC San’s Purchasing Ordinance.
CEQA
N/A
FINANCIAL CONSIDERATIONS
The requested funding complies with authority levels of OC San’s Purchasing Ordinance and is
within the approved budget.
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File #:2021-1942 Agenda Date:11/10/2021 Agenda Item No:4.
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
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ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1704 Agenda Date:11/10/2021 Agenda Item No:5.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
CONSOLIDATED FINANCIAL REPORT FOR THE FIRST QUARTER ENDED SEPTEMBER 30,
2021
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
Receive and file the Orange County Sanitation District First Quarter Financial Report for the period
ended September 30, 2021.
BACKGROUND
Included in this consolidated report are the following quarterly financial reports for the period ended
September 30, 2021:
·First Quarter Budget Review
The Budget Review Summary provides the Directors, staff and general public with a
comprehensive overview of the financial results of the Orange County Sanitation District (OC
San) through the first quarter ended September 30, 2021.
·Quarterly Treasurer’s Report
This section reports on financial portfolio performance with respect to OC San’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 OC San’s investment manager, Chandler Asset
Management.
·Certificates of Participation Quarterly Report
The report includes a summary of each outstanding debt issuance and a comparative chart
illustrating the COP rate history.
RELEVANT STANDARDS
·Quarterly financial reporting
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OC6SAN
ORANGE COUNTY SANITATION DISTRICT
File #:2021-1704 Agenda Date:11/10/2021 Agenda Item No:5.
ADDITIONAL INFORMATION
The quarterly treasurer’s report contained within the Consolidated Financial Reports for the First
Quarter Ended September 30,2021 is being submitted in accordance with OC San’s investment
policy that requires the report be submitted to the governing body following the end of each quarter
and includes the following information:
·Performance results in comparison with the ICE BAML 3-month treasury bill index for the liquid
operating portfolio;and the ICE BAML Corp./Govt.1-5 Year Bond index for the long-term
portfolio as identified in the investment policy;and the time-weighted total rate of return for the
portfolio for the prior three months,six months,nine months,twelve months,and since
inception compared to the Benchmark returns for the same periods:
Portfolio Performance Summary
As of September 30, 2021
Liquid Operating Monies (%)Long-Term Operating Monies (%)
Total Rate
of Return
Benchmark Total Rate
of Return
Benchmark
3 Months 0.03 0.02 0.02 0.01
6 Months 0.04 0.02 0.21 0.21
9 Months 0.08 0.04 -0.29 -0.31
12 Months 0.11 0.07 -0.08 -0.16
Annualized Since Inception 30 Nov 2014 1.00 0.89 1.96 1.93
·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 $130.0 M $673.2 M
Market Value $129.9 M $686.4 M
·Modified duration of the portfolio compared to the Benchmark:
Liquid Operating Long-Term
OC San Policy < 0.50 < 5.00
Benchmark 0.15 2.61
Portfolio 0.45 2.54
·Dollar change in value of the portfolio for a one percent (1%) change in interest rates:
Liquid Operating - $578,486
Long- Term - $17,405,427
·None of the portfolios are currently invested in reverse repurchase agreements.
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File #:2021-1704 Agenda Date:11/10/2021 Agenda Item No:5.
·The percent of the Liquid Operating Monies portfolio maturing within 90 days: 1.6%
·Average portfolio credit quality:
Liquid Operating - AA+/Aaa
Long- Term - AA/Aa1
·Percent of portfolio with credit ratings below “A”by any rating agency and a description of
such securities:
Liquid Operating - Percent of portfolio - 1.6%
Long- Term - Percent of portfolio - 1.3%
Cost Maturity
Date
Moody S&P Fitch
Morgan Stanley Note $2,047,260.00 5/19/2022 A1 BBB+A
SLMA Student Loan Trust 2008-9 A $9,767.12 4/25/2023 Baa3 B B
AMRESCO Residential Securities 1999-1 A $89,377.81 6/25/2029 NR BBB BBB
Morgan Stanley Callable Note $8,889,710.25 5/30/2025 A1 BBB+A
·All investments are in compliance with this policy and the California Government Code,except
for the following Lehman Brother holdings that OC San 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 OC San to meet its operating expenditure requirements
for the next six months.
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
·Consolidated Financial Report for the First Quarter Ended September 30, 2021
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Orange County, California
Orange County, California
Orange County Sanitation DistrictFirst Quarter Financial Report
for the period ended September 30, 2021
OC ~SAN
ORANGE COUNTY SANITATION DISTRICT
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 2021-22 First Quarter Financial Report
This Page Intentionally Left Blank
Executive Summary
Page 1
Consolidated Financial Reports
For the First Quarter Ended
September 30, 2021
Included in this consolidated report are the following quarterly financial reports for the
period ended September 30, 2021:
First Quarter Budget Review:
The Consolidated Financial Reports Section provides the Directors, staff, and the
general public with a comprehensive overview of the financial results of the
Orange County Sanitation District (OC San) through the first quarter ended
September 30, 2021.
Contained within the Budget Review Sections 2 to 5 is the budget-to-actual status
of the Collection, Treatment and Disposal Operations, Capital Improvement
Program, Debt Service, and Self-Insurance Program. Also included is a Capital
Assets Schedule as of September 30, 2021. The chart below provides for a
summary of these activities.
Various detail information can be found in this report. Below is a descriptive
summary of these activities through September 30, 2021:
a) Most major expense categories are anticipated to be at or below budget.
b) Total revenues are at 27.3 percent of the $650.9 million budget mainly due to
the receipt of $164.4 million from the issuance of Revenue Refunding
Certificates of Participation, Series 2021A, during the first quarter of the fiscal
year. The obligations were issued to refund $61.6 million of the Series 2011A
100%
75%
50%
25%
0%
-
$177.4M
Operating
Revenue
First Quarter Results
as a Percentage of Budget
$42.9M
Operating
Expense
I $21 .0M I
Capital
Outlays
$175.2M
Debt
Service
$807K
Self
Insurance
FY 2021-22 First Quarter Financial Report
Page 2
wastewater refunding revenue obligations and $102.2 million of the Series
2018A revenue certificate anticipation notes. Except for Service Fees, Sludge
Disposal-IRWD, Capital Assessments-IRWD, Property Taxes, Interest
Earnings, CIP Reimbursements, CNG Sales, Grant Revenue, and Other
Revenues, most revenue sources are currently tracking close to or exceeding
revenue estimates. Overall, total revenues are projected to approximate or be
slightly above budget at year-end. More detailed information on revenues is
provided within Section 1 – Pages 4 through 6.
c) Collection, Treatment and Disposal Costs:
As indicated within the Consolidated Financial Reports Section of this report,
the net operating requirements through the first quarter of $42.9 million is
currently tracking at 23.3 percent of the $184.0 million budget. In addition, net
operating expenses have increased $245,000 or 0.6 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 3.
The total cost per million gallons is $2,542 based on flows of 183 million
gallons per day. This is $139 per million gallons, or 5.2 percent less 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 2021-22 has been revised to $219.1 million, or 97.6
percent of the board approved cash outlay of $224.6 million. The actual cash
outlay spending through the first quarter is $21.0 million, or 9.3 percent of the
total budgeted outlay. More detailed information on the CIP budget review
can be found in Section 1 – Page 10 and Section 3.
First Quarter Treasurer’s Report
This section reports on financial portfolio performance with respect to OC San’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 OC San’s money
manager, Chandler Asset Management (Chandler).
Chandler notes the Long-Term Portfolio quarterly return of 2 basis points
outperformed the ICE BAML 1-5 Year US Corp/Govt Rated AAA-A Index return of
1 basis point, while the Liquid Operating Monies Portfolio quarterly return of 3
basis points outperformed the ICE BAML 3-Month US Treasury Bill Index return of
2 basis points.
Chandler further notes that the ongoing health crisis and related supply chain
bottlenecks continue to have a meaningful impact on economic data, but they
Executive Summary
Page 3
believe the underlying momentum of the economy remains strong. Economic
growth is expected to continue at an above-trend pace, fueled in part by ongoing
tailwinds from fiscal support, accommodative monetary policy, and continued
progress on vaccinations. Covid infection rates in the US and on a global basis are
now declining, but supply chains remain dislocated and inflation readings continue
to run hot. Chandler expects supply chain bottlenecks will continue to put upward
pressure on prices over the near- to intermediate-term but should improve next
year.
Monetary policy remains highly accommodative, but the Fed is inching toward a
path of policy normalization. The Federal Open Market Committee (FOMC) kept
monetary policy unchanged at its September meeting but indicated that they are
preparing to reduce the magnitude of their asset purchases. The fed funds target
rate remains in the range of 0.0% to 0.25%. For now, the Fed continues to
purchase $80 billion of Treasuries per month, and $40 billion of agency mortgage-
backed securities per month. However, the Fed is widely expected to make the
official announcement about tapering asset purchases at the next FOMC meeting
in early November. Nevertheless, the Fed remains patient with their outlook for
rate hikes, and Fed Chair Powell has indicated that policymakers would not
consider a rate hike until sometime after the tapering process is complete in mid-
2022. The median estimate among Fed policymakers calls for one 25 basis point
rate hike in 2022. Chandler believes the Fed’s slow and steady withdrawal of
monetary policy accommodation will remain supportive of an improving labor
market and growing economy.
The Treasury yield curve continued to steepen in September. The 10-year
Treasury yield rose nearly 18 basis points in September to 1.49%, while the 2-year
Treasury yield rose about seven basis points to 0.28%. Chandler believes some of
the factors that put downward pressure on longer-term rates over the summer
including concerns about the Delta COVID-19 variant, market technicals, and
uneven global vaccination rates, have started to ease.
The treasury yield curve is steeper on a year-over-year basis. At the end of
September, the 2-year Treasury yield was about 15 basis points higher, and the
10-Year Treasury yield was about 80 basis points higher, year-over-year.
Chandler believes the curve remains poised for further steepening, amid a growing
economy and improving labor market, while the Fed is expected to slowly
normalize monetary policy.
The Consumer Price Index (CPI) was up 5.4% year-over-year in September,
versus up 5.3% year-over-year in August. Core CPI (CPI less food and energy)
was up 4.0% year-over-year in September (in line with expectations), unchanged
from August. The Personal Consumption Expenditures (PCE) index was up 4.3%
year-over-year in August, versus up 4.2% in July. Core PCE was up 3.6% year-
over-year in August, unchanged from July. Current inflation readings are running
well above the Fed’s longer-run target of around 2.0%. While the Fed believes
FY 2021-22 First Quarter Financial Report
Page 4
many of the factors fueling higher inflation will be temporary, the upward pressure
on inflation from supply chain bottlenecks and pandemic-related disruptions is
likely to remain elevated over the near-term.
Economic Outlook
The benign quarter-over-quarter changes in equity and fixed income market
benchmarks masks the intra-quarter volatility experienced by market participants.
Economic distortions linked to the coronavirus are becoming more acute, leading
to more short-term price moves in market benchmarks inconsistent with the overall
reopening economic thesis. A case in point is the 10-year US Treasury note, which
only moved higher by 2 basis points on a quarter-over-quarter basis but reached a
low yield of 1.17% on August 3rd only to move higher later in the quarter, topping
out at 1.54% on September 28th and closing the quarter at 1.49%. On the equity
side of the market, despite strong year-to-date performance, the Russell 2000 and
Nasdaq composite both experienced negative total returns in the quarter, while the
S&P 500 managed a small positive total return, incongruent with equity market
correlations from earlier in the recovery.
The supply side constraints hindering the economic recovery are placing additional
pressures on inflation metrics and impeding the velocity of the recovery. PCE Core
inflation, a key metric for Federal Reserve policymakers, has been at 3.6% on a
year-over-year basis for the past four months in a row through August, comfortably
above the 2% objective. Inflation metrics should start to move lower with the
passage of time, but there are still several unknowns impeding the ability to
forecast how quickly and to what magnitude inflation will moderate. Although
nonfarm payrolls currently have a robust three-month moving average of 550k, the
month over month readings have been volatile, and wage pressure is evident with
average hourly earnings on a year-over-year basis at 4.6%. The labor force
participation rate is low at 61.6%; as extended unemployment benefits expire and
the risk from the coronavirus Delta variant dissipates, the supply of workers should
increase helping to restrain wage inflation. Policymakers are comfortable, for now,
the elevated inflation readings are being exacerbated by a narrow set of
categories linked to the economic reopening. However, the longer the supply side
issues linger in the economy, the greater the risk long-term inflation expectations
could become unanchored, calling into question the Fed’s “transitory inflation”
narrative.
The Chandler team holds the view both monetary and fiscal policy will remain
stimulative in the coming quarters. The core of the Federal Reserve remains
dovish, despite the more hawkish rhetoric for several regional Fed Presidents.
Although the Federal Reserve has telegraphed the process of tapering the $120
billion of monthly asset purchases is set to commence late this year, Chandler
believes an increase in the Fed Funds rate is unlikely in 2022; Fed Chair Powell
has delinked the taper process from rate hikes. Trends in employment and
inflation will be important barometers to monitor in coming quarters and the Fed is
a long way from their full employment goals, a precursor to tightening policy.
Executive Summary
Page 5
Chandler believes the Federal Reserve will be conservative in the pace of the
taper, consistent with the new Flexible Average Inflation Targeting (FAIT) regime.
In their view the Fed Funds rate will stay lower for longer, allowing the economy to
run ‘hot’, to enable the ultimate adjustment in the Fed Funds rate to be higher,
consistent with a 2% long-term inflation goal. The Federal Reserve is arguably the
most dovish of all the developed market central banks. Due to the challenges in
emerging markets correlated with lack of vaccine distribution, Chandler thinks a
dovish Federal Reserve – acting as the de-facto global central bank - will assist
the global economic recovery by allowing emerging market central banks to not
have to tighten prematurely because of currency risk. Regarding fiscal policy,
Chandler expects the bipartisan infrastructure bill to ultimately become law, and
the 2nd infrastructure bill to be watered down from the proposed $3.5 trillion
number to pass both chambers of Congress.
First Quarter Certificates of Participation (COP) Report
The report includes a summary of each outstanding debt issuance and a
comparative chart illustrating the COP rate history.
FY 2021-22 First Quarter Financial Report
Page 6
This Page Intentionally Left Blank
Consolidated Financial Reports
Section 1 - Page 1
First Quarter Financial Report
September 30, 2021
The Financial Management Division is pleased to present the FY 2021-22 first quarter
financial report. This report provides a comprehensive overview of the financial activities
of the Orange County Sanitation District (OC San) and reports on the status of all
capital projects in progress. A summary of the sections contained within this report is
provided below.
Operating Budget Review: This section reports on collection, treatment, and disposal
net operating requirements.
At September 30, 2021, 23.3 percent, or $42.9 million of the FY 2021-22 net operating
budget of $184.0 million has been expended. Net operating expenses increased from
the same period last year by $245,000, or 0.6 percent, mainly due to an increase of
$619,000 in Utilities, $249,000 in Professional Services, $164,000 in Salaries and
Benefits, $158,000 in Administrative Expenses, and a decrease of $133,000 in indirect
costs allocated out to capital projects, partially offset by a decrease of $571,000 in
Repairs and Maintenance, $406,000 in Operating Materials and Supplies, and $95,000
in Research and Monitoring. These and other variances that factor into this net increase
in expenses are discussed in more detail below. Overall, staff expects the total
operating costs to remain at or slightly below budget through the remainder of
the year.
At September 30, 2021, 27.3 percent, or $177.4 million of the FY 2021-22 budgeted
total revenues of $650.9 million has been recognized. Revenues increased from the
same period last year by $164.5 million, mainly due to receipt of $164.4 million from
issuance of Revenue Refunding Certificates of Participation, Series 2021A, during the
first quarter of the fiscal year. Other increases include $2.1 million in Capital Facilities
Capacity Charges, $1.3 million in Permit Fees, and $347,000 in Property Taxes, which
are offset by a decrease of $2.7 million in Sludge Disposal-IRWD and $1.2 million in
Interest Earnings. 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 above budget at the end of the fiscal year.
Significant operating results as of September 30, 2021 include the following:
Salaries, Wages and Benefits – Personnel costs of $24.9 million are on target at
23.1 percent of the budget through the first quarter of FY 2021-22. The budget
is based on a 5 percent vacancy factor, and staffing is 27 full-time equivalents
(FTEs), or 4.2 percent below the total 639 FTEs approved in the FY 2021-22 budget.
Salary and benefit costs are $164,000, or 0.7 percent higher than the $24.8 million
incurred in the same period last year, mainly due to an increase of $445,000 in
Group Insurances and $65,000 in Workers’ Compensation, offset by a decrease of
FY 2021-22 First Quarter Financial Report
Section 1 - Page 2
$371,000 in Salaries and Wages. Net operating personnel costs are expected to
approximate budget throughout the remainder of the year.
Administrative Expenses – Administrative Expenses totaled $691,000, or 33.5
percent of the $2.1 million budget through September 30. These costs are
$158,000, or 29.6 percent higher at September 30 in comparison with the prior year,
mainly due to an increase of $77,000 in Small Computer Items, $62,000 in Minor
Furniture & Fixtures for installation of Plant No. 2 Maintenance workstations, and
$20,000 in Memberships. It is anticipated that administrative costs will
approximate or be above budget at year-end.
Printing and Publication Expenses – Printing and Publication Expenses totaled
$60,000, or 14.2 percent of the $420,000 budget through September 30. These
costs are $10,000, or 20.6 percent higher at September 30 in comparison with the
prior year, due to an increase in costs incurred for legal notices and employment
recruitment. Printing and publication costs are expected to be below budget at
year-end.
Training and Meetings – Training and meetings of $106,000 is below target at
11.7 percent of the $907,000 budget through September 30. 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 increased over the same
period last year by $9,000, or 9.1 percent. Total training and meeting costs are
anticipated to be below budget at year-end.
Operating Materials and Supplies – Operating materials and supplies of $4.7
million is below target at 21.5 percent of the $22.0 million budget through
September 30. Operating Materials and Supplies is lower than the prior year by
$406,000, or 7.9 percent, mostly due to decreases of $290,000 in Chemical
Coagulants resulting from decreased usage of cationic polymer and ferric chloride
and $158,000 in Disinfection for purchase of sodium hypochlorite. Based on
current processes, operating materials and supplies are anticipated to
approximate or be below budget at year-end.
Contractual Services – Contractual services is below target at $4.1 million, or
21.5 percent of the $19.1 million budget through September 30. Solids Removal
costs, budgeted at $13.1 million, comprise the majority of this expense category at
$2.9 million, or 22.4 percent of its budget at September 30. Contractual Services is
lower by $29,000, or 0.7 percent over the same period last year, due to the decrease
of $27,000 in Other Waste Disposal, $11,000 in Oxygen for liquid oxygen and
associated vaporization system maintenance, $9,000 in Solids Removal costs, and
$9,000 in Other Contractual Services. These decreases are partially offset by an
increase of $27,000 in Outside Lab Services. County Service Fees totaled only
$7,000, or 1.4 percent of the $504,000 budget through the first quarter as the
preponderance of these fees are billed by the County in the fourth quarter. Total
Consolidated Financial Reports
Section 1 - Page 3
contractual services costs are anticipated to approximate or be below budget
at year-end.
Professional Services – Professional services costs totaled $907,000, or 13.1
percent of the $6.9 million budget through September 30. Professional service
costs, such as Engineering, Environmental Scientific Consulting, and Other
Professional Services, are proportionately low through September 30 due to a
variety of factors such as timing of services and re-evaluation of need for services.
These costs are $249,000, or 37.9 percent higher at September 30 in comparison
with the prior year, mainly due to an increase of $238,000 in Legal 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 $577,000, or
37.3 percent of the $1.5 million budget through September 30. These costs are
$95,000, or 14.2 percent lower at September 30 in comparison with the prior year,
due to a decrease of $106,000 in Environmental Monitoring costs for ocean water
quality analysis and $10,000 in Air Quality Monitoring costs for emissions testing,
offset by an increase of $20,000 in Research costs reflecting the higher annual
contribution to Southern California Coastal Water Research Project. Total research
and monitoring costs are anticipated to approximate budget at year-end.
Repairs and Maintenance – Repair and maintenance costs totaled $7.6 million,
or 25.5 percent of the $29.7 million budget through September 30. These costs
are $571,000, or 7.0 percent lower at September 30 in comparison with the prior
year, due to an overall decrease in repair and maintenance services and
agreements such as digester cleaning and mechanical rehabilitation of primary
clarifier tanks. It is anticipated that the costs for this category will approximate
budget at year-end.
Utilities – Utilities costs totaled $3.2 million, or 33.9 percent of the $9.3 million
budget through September 30. These costs are $619,000, or 24.3 percent higher
at September 30 in comparison with the prior year, primarily due to an increase of
$424,000 for Power due to greater electricity consumption and higher unit costs,
$144,000 for Natural Gas as the result of a volatile market price index, and $43,000
for Water from both an increase in usage and unit cost. It is anticipated that the
costs will approximate or be slightly above budget at year-end.
Other Operating Supplies – Other operating supplies costs totaled $892,000, or
21.2 percent of the $4.2 million budget through September 30. Property and
General Liability Insurance, budgeted at $2.2 million, comprise the majority of this
expense category at $535,000. Overall, Other Operating Supplies is $5,000 or 0.5
percent lower at September 30 in comparison with the prior year, though some
variances include an increase in Miscellaneous Operating Expense of $44,000, or
60.4 percent, due to sampling and analysis of polyfluoroalkyl substances (PFAS),
and a decrease in Regulatory Operating Fees of $20,000 for payment of emission,
equipment permit, and facility fees. It is anticipated that other operating supplies
costs will approximate budget at year-end.
FY 2021-22 First Quarter Financial Report
Section 1 - Page 4
Revenues – Service Fees and Property Taxes – Through September 30, revenues
from Service Fees are at $88,000, or 0.0 percent of the $301.8 million budget
and Property Taxes are at $2.6 million, or 2.5 percent of the $103.2 million
budget. These items comprise the majority of OC San’s revenues and are mostly
collected by the County through the property tax roll and distributed to OC San
throughout the year based on a set distribution schedule that begins in November of
each year. The low sewer service fee revenue is attributable to no sewer service fee
apportionments scheduled or received from the County through the first quarter. The
increase of $48,000 in Service Fee revenue over the prior year is primarily due to
the timing of receipts. The Property Tax revenue increase of $347,000, or 15.5
percent over the prior year, is a result of the timing of unsecured and miscellaneous
property tax receipts, 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 $3.5 million, or 28.0 percent of the
$12.6 million budget. The revenues through the first quarter are higher than the
same period last year by $1.3 million, or 61.5 percent, due to rate increases and the
impact of COVID-19 on user flow in the prior year. Additionally, the number of
permittees fluctuates from year to year as businesses establish or cease their
operations. Permit Fees revenues are expected to approximate budget at year-
end.
Revenues – Inter District Sewer Use – SAWPA and SBSD – Inter District Sewer
revenues-SAWPA and SBSD are at $690,000, or 26.0 percent of the $2.7 million
budget. This revenue is derived from charges to the Santa Ana Watershed
Protection Agency (SAWPA) and Sunset Beach Sanitary District (SBSD) for
treatment of flows. The revenues through the first quarter are higher than the same
period last year by $22,000, or 3.3 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 $979,000, or 21.1 percent of the $4.6 million budget. This revenue is
derived from charges to the Irvine Ranch Water District (IRWD) for treatment of
flows. The revenues through the first quarter are higher than the same period last
year by $14,000, or 1.5 percent, mainly due to a decrease of $45,000 in interest
income allocated to IRWD, offset by a decrease of $21,000 in operating and
maintenance charges to IRWD and an increase of $10,000 in property tax income
allocated to IRWD. These revenues are expected to approximate or be below
budget at year-end.
Revenues – Sludge Disposal – IRWD – Sludge Disposal-IRWD, budgeted at $6.1
million, has not recognized any revenues through September 30. This revenue
is for the handling, treatment, and disposal of solids derived from flows discharged
by IRWD to OC San. Billings are based on estimates, with a reconciled adjustment
recorded in subsequent years. The revenues through the first quarter are lower than
the same period last year by $2.7 million, or 100.0 percent, due to IRWD
Consolidated Financial Reports
Section 1 - Page 5
commissioning their new solids processing facilities and reducing their diversion of
solids to OC San’s line to near zero. Consequently, no billings have been produced
through September 30. It is anticipated that IRWD sludge disposal revenues will
be below budget at year-end.
Revenues – Capital Assessments – IRWD – Capital Assessments-IRWD are at
$519,000, or 6.6 percent of the $7.9 million budget. The revenues through the
first quarter are lower than the same period last year by $1,000, or 0.2 percent. It is
estimated that IRWD capital assessments revenues will be below budget at
year-end.
Revenues – Capital Facilities Capacity Charges (CFCC) – CFCC are at $3.4
million, or 20.6 percent of the $16.7 million budget. The revenues through the
first quarter are higher than the same period last year by $2.1 million, or 147.7
percent, due to increases in capacity charges collected from local agencies and
supplemental charges assessed to industrial dischargers. This is likely a result of
prior year impacts from COVID-19 and the current year increase in total building
permit valuation, as forecasted by Chapman University to be 27.7 percent in 2021.
These revenues are expected to approximate or be below budget at year-end.
Revenues – Interest Earnings – Interest Earnings are at $584,000, or 4.0 percent
of the $14.5 million budget. The revenues through the first quarter are lower than
the same period last year by $1.2 million, or 66.8 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, budgeted at $11.8
million, has not recognized any revenues through September 30. This mirrors
the same period last year and is due to timing of reimbursements for construction
projects, such as the budgeted $8.6 million from Orange County Water District
(OCWD) for P2-122 Headworks Modifications at Plant No. 2 for GWRS Final
Expansion and $3.1 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 $173,000, or 23.1
percent of the $750,000 budget. This revenue is derived from fees charged to
wastehaulers, allowing them to dump waste into OC San’s system. The revenues
through the first quarter are higher than the same period last year by $25,000, or
16.5 percent, due to an increase in waste dumping. These revenues are expected
to approximate budget at year-end.
Revenues – CNG Sales – CNG Sales revenues are at $62,000, or 15.5 percent of
the $400,000 budget. This revenue is derived from public sales at OC San’s
Compressed Natural Gas (CNG) fueling station. The revenues through the first
quarter are higher than the same period last year by $14,000, or 29.9 percent,
presumably attributed to the decrease in commuting in the prior year brought about
by COVID-19. These revenues are expected to be below budget at year-end.
FY 2021-22 First Quarter Financial Report
Section 1 - Page 6
Revenues – Rents & Leases – Rents & Leases revenues are at $126,000, or 21.0
percent of the $600,000 budget. The revenues through the first quarter are lower
than the same period last year by $72,000, or 36.3 percent, due to less rent received
as tenants moved out of the properties acquired for construction of the new
headquarters building. These revenues are expected to approximate or be below
budget at year-end.
Revenues – Other – Other revenues are at $192,000, or 6.6 percent of the $2.9
million budget. These revenues are $94,000, or 96.3 percent higher than the same
period last year, primarily due to an increase of $155,000 in miscellaneous other
revenue from federal credit for COVID-19 supplemental paid sick leave, and $12,000
in deferred compensation administrative activities, partially offset by a decrease of
$75,000 in civil penalties.. These revenues are expected to approximate or be
below budget at year-end.
Consolidated Financial Reports
Section 1 - Page 7
Comparison of First Quarter Cost per
Million Gallon Results with Budget
Last Five Years
As demonstrated in the preceding graph for the current and each of the last four fiscal
years, the cost per million gallons at the end of the first quarter has been between 2.2
and 13.7 percent lower than the annual budget. The FY 2021-22 first quarter cost per
million gallons of $2,542 is 5.2 percent lower when compared with this year’s budget.
The increase in cost per million gallons of $63 from the previous year is primarily due to
an increase in operating expenses, which are 0.6 percent higher than the same period
last year, and a decrease in flows, which are 1.9 percent lower than the same period
last year. Staff believes that overall operating costs will be at or slightly below budget at
year-end.
The total cost per million gallons at September 30 is $2,542 based on flows of 183
million gallons per day. This is $139 per million gallons, or 5.2 percent lower than the
budgeted cost per million gallons of $2,681. There is an inverse relationship between
the amount of flows and the cost per unit of collection, treatment, and disposal.
Consequently, the lower cost per million gallons is due to net expenses being 6.7
percent lower than the proportionate budget through September 30, partially offset by
flows of 183 million gallons per day being 2.4 percent less than the budgeted flow of
188 million gallons per day.
More detailed information on operating revenues, costs, and related information is
provided within Section 2.
$1,500
$1,600
$1,700
$1,800
$1,900
$2,000
$2,100
$2,200
$2,300
$2,400
$2,500
$2,600
$2,700
17-18 18-19 19-20 20-21 21-22
$2
,
0
5
0
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,
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,
3
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,
4
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4
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,
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8
1
First Quarter Fiscal Year Budget□ □
FY 2021-22 First Quarter Financial Report
Section 1 - Page 8
Following are data tables showing the last five years of Single Family Residential User
Fees (SFR) and the cost per million gallons (MG) to collect, treat, and dispose of
wastewater for the Orange County Sanitation District and similar agencies. The
agencies used in the tables were determined to be those that most closely resembled
OC San in terms of services provided and treatment levels. The summaries
demonstrate that OC San’s SFR and cost per MG are each one of the lowest in their
respective groups.
2017 2018 2019 2020 2021
Agency SFR SFR SFR SFR SFR Notes
San Francisco 937$ 988 1,076 1,169 1,270
Vallejo Sanitation/Flood Control District 520$ 585 656 715 747
Central Contra Costa Sanitary District 530$ 567 598 598 660
City of Los Angeles 527$ 561 597 636 636 Note 1
City of San Diego 573$ 573 573 573 573 Note 2
Union Sanitary District 393$ 407 421 421 524 Note 3
Dublin San Ramon Services District 397$ 423 447 469 486
East Bay MUD 391$ 410 423 439 457
City of Hayward 375$ 394 412 430 446
Sacramento County 432$ 444 444 444 444
Orange County Sanitation District 331$ 335 339 339 343
Oro Loma Sanitary District 238$ 256 275 296 318
Irvine Ranch Water District 309$ 309 313 313 313 Note 4
City of Fresno 309$ 309 309 309 309 Note 5
Los Angeles County 186$ 191 196 213 226 Note 6
Notes:
(1) - Data is for the typical SFR customer rate.
(2) - Data represents the base sewer fee plus the average usage of 9 hundred cubic feet per month.
(3) - Deferred rate increase for July 2020 incorporated into July 2021 rate.
(4) - Data represents the usage of 10 hundred cubic feet per unit.
(5) - Data represents the minimum SFR rate not including flow.
(6) - 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 1
San Francisco B 3 5,268$ 4,916 5,295 5,995 7,573 Note 2
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 3
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 4
City of Los Angeles B 4 2,452$ 2,487 2,329 3,046 3,021 Note 5
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 6
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 FY18-19 Annual Comprehensive Financial Report treatment cost.
(4) - FY18-19 operating expense decreased $1.1 million.
(6) - In FY19-20, Agency updated data for FY16-17 and after to include administrative costs.
Benchmark Study
Five-Year Cost per MG
(2) - FY19-20 operating expense increased $2.9 million and average daily flow decreased 19.3MG per day.
Combined stormwater/sewer system.
(5) - FY17-18 influent flow has not been reduced by the amount of sludge discharged to the sewers from DCTWRP
and LAGWRP.
(3) - 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.
FY 2021-22 First Quarter Financial Report
Section 1 - Page 10
Capital Outlay Review:
As depicted by the preceding chart, Capital Outlays totaled $21.0 million, or 9.3
percent of the capital outlay cash flow budget for FY 2021-22 as of September 30,
2021. Costs are lower than the proportionate budget through the first quarter as some
projects are still in the design phase or have experienced various delays or deferrals.
Examples as of September 30 are Rehabilitation of Western Regional Sewers, which
has a budget of $13.1 million but actual costs of $150,000, Primary Treatment
Rehabilitation at Plant No. 2, which has a budget of $19.8 million but actual costs of
$283,000, and Headquarters Complex, which has a budget of $45.1 million but actual
costs of $214,000. Overall, the capital outlay costs of the capital improvement
program are expected to approximate $219.1 million, or 97.6 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 OC
San’s capital facilities at September 30, 2021, 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. Excluding payments on refunding debt from the Revenue
Refunding Certificates of Participation, Series 2021A, as of September 30, 2021, no
principal payments have been made. 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
$250,000,000
09/30/21 Actual
Capital Outlay
$20,960,203
Projected 2021-22
Capital Outlay
$219,094,600
2021-22 Capital Outlay
Cashflow Budget
$224,561,000
Consolidated Financial Reports
Section 1 - Page 11
Self-Insurance Budget Review: Section 5 is the Self-Insurance Section. Through
September 30, the Self-Insurance Fund revenues totaled $754,000, or 25.8 percent of
the budget, while expenses are $807,000, or 23.4 percent of the budget.
Separate fund accounting is used for recording the revenue and expenses incurred in
managing these liability claims. The revenues to these funds represent charges to
operating divisions. Expenses to these funds include actual claims paid, claims
administration, and excess loss policies.
FY 2021-22 First Quarter Financial Report
Section 1 - Page 12
This Page Intentionally Left Blank
Operating Budget Review
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Collection, Treatment, & Disposal Expenses by Major Category
Budget and Actual (in thousands)
September 30, 2021
Budget Actual
Section 2 - Page 1
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Divisional Contributions to Cost Per Million Gallons
For the Three Months Ended September 30, 2021
2021-22
09/30/19 09/30/20 Annual 09/30/21
Actual Actual Budget Actual
Flow in Million Gallons 17,268.33 17,208.88 68,620.00 16,881.01
Flow in Million Gallons per Day 187.70 187.05 188.00 183.49
Executive Management Department
General Management Administration 33.90$ 27.48$ 27.45$ 23.95$
Board Services 8.62 12.13 14.15 13.24
Public Affairs 16.84 15.66 20.43 15.45
Subtotal 59.36 55.27 62.03 52.64
Human Resources Department
Human Resources 58.62 44.53 64.84 56.78
Risk Management / Safety / Security 77.04 50.30 62.43 61.39
Subtotal 135.66 94.83 127.27 118.17
Administrative Services Department
Administrative Services 7.58 7.45 3.99 8.46
Consolidated Services - 90.21 114.43 99.65
Financial Management 38.81 58.14 62.16 57.79
Contracts, Purchasing, & Materials Mgmt.60.76 68.44 71.40 66.20
Information Technology 243.60 239.80 199.79 258.93
Subtotal 350.75 464.04 451.77 491.03
Environmental Services Department
Environmental Services Administration 33.21 35.19 59.41 77.06
Resource Protection 77.56 81.70 98.54 81.17
Laboratory, Monitoring and Compliance 176.72 167.64 151.11 134.18
Subtotal 287.49 284.53 309.06 292.41
Engineering Department
Engineering Administration 13.22 16.89 20.15 19.03
Planning 51.38 46.52 64.11 52.29
Project Management Office 65.18 61.22 62.67 61.42
Design 105.39 86.01 102.34 95.39
Construction Management 93.14 93.03 106.33 100.80
Subtotal 328.31 303.67 355.60 328.93
Operations & Maintenance Department
Operations & Maintenance Administration 3.86 1.87 9.05 2.11
Collections Facilities O & M 160.12 182.77 290.32 207.21
Fleet Services 25.83 25.00 33.15 33.22
Plant No. 1 Operations 445.91 479.38 489.92 472.08
Plant No. 2 Operations 261.64 252.10 278.03 258.82
Plant No. 1 Maintenance 357.46 334.45 350.26 365.77
Plant No. 2 Maintenance 279.25 292.54 240.65 208.51
Subtotal 1,534.07 1,568.11 1,691.38 1,547.72
Total Operating Expenses 2,695.64 2,770.45 2,997.11 2,830.90
Cost Allocation (299.74) (291.38) (316.42) (289.16)
Net Operating Requirements 2,395.90$ 2,479.07$ 2,681.00$ 2,541.74$
FY 2021-22 First Quarter Financial Report
Section 2 - Page 2
Comparison of Expenses by Department
For the Three Months Ended September 30, 2021
2021-22
09/30/19 09/30/20 Year to Date Budget %
Department and Division Actual Actual Budget 09/30/21 Realized
Executive Management Department
General Management Administration 585,471$ 472,840$ 1,883,461$ 404,349$ 21.47%
Board Services 148,781 208,682 971,245 223,424 23.00%
Public Affairs 290,832 269,532 1,402,096 260,880 18.61%
Subtotal 1,025,084 951,054 4,256,802 888,653 20.88%
Human Resources Department
Human Resources 1,012,301 766,293 4,449,222 958,474 21.54%
Risk Management / Safety / Security 1,330,391 865,640 4,283,781 1,036,367 24.19%
Subtotal 2,342,692 1,631,933 8,733,003 1,994,841 22.84%
Administrative Services Department
Administrative Services 130,873 128,223 273,820 142,803 52.15%
Consolidated Services - 1,552,414 7,852,225 1,682,124 21.42%
Financial Management 670,249 1,000,514 4,265,348 975,550 22.87%
Contracts, Purchasing, & Materials Mgmt. 1,049,256 1,177,730 4,899,742 1,117,496 22.81%
Information Technology 4,206,492 4,126,727 13,709,504 4,371,010 31.88%
Subtotal 6,056,870 7,985,608 31,000,639 8,288,983 26.74%
Environmental Services Department
Environmental Services Administration 573,469 605,630 4,076,942 1,300,804 31.91%
Resource Protection 1,339,345 1,406,037 6,761,792 1,370,315 20.27%
Laboratory, Monitoring and Compliance 3,051,597 2,884,969 10,369,367 2,265,054 21.84%
Subtotal 4,964,411 4,896,636 21,208,101 4,936,173 23.27%
Engineering Department
Engineering Administration 228,357 290,687 1,382,852 321,307 23.24%
Planning 887,257 800,525 4,399,094 882,657 20.06%
Project Management Office 1,125,582 1,053,555 4,300,735 1,036,763 24.11%
Design 1,819,922 1,480,157 7,022,705 1,610,199 22.93%
Construction Management 1,608,438 1,600,982 7,296,647 1,701,689 23.32%
Subtotal 5,669,556 5,225,906 24,402,033 5,552,615 22.75%
Operations & Maintenance Department
Operations & Maintenance Administration 66,693 32,176 621,180 35,582 5.73%
Collections Facilities O & M 2,764,942 3,145,299 19,922,006 3,497,911 17.56%
Fleet Services 446,011 430,164 2,274,876 560,789 24.65%
Plant No. 1 Operations 7,700,099 8,249,611 33,618,420 7,969,217 23.70%
Plant No. 2 Operations 4,518,161 4,338,364 19,078,603 4,369,141 22.90%
Plant No. 1 Maintenance 6,172,705 5,755,499 24,035,166 6,174,589 25.69%
Plant No. 2 Maintenance 4,822,142 5,034,229 16,513,125 3,519,798 21.32%
Subtotal 26,490,753 26,985,342 116,063,376 26,127,027 22.51%
Total Operating Expenses 46,549,366 47,676,479 205,663,954 47,788,292 23.24%
Cost Allocation (5,176,213) (5,014,470) (21,713,080) (4,881,091) 22.48%
Net Operating Requirements 41,373,153$ 42,662,009$ 183,950,874$ 42,907,201$ 23.33%
Operating Budget Review
Section 2 - Page 3
Summary of Collection, Treatment, & Disposal Expenses by Major Category
For the Three Months Ended September 30, 2021
Expense Expense Increase Increase Percent
Budget Through Through (Decrease)(Decrease)Budget Remaining
2021-22 09/30/21 09/30/20 $%Realized Budget
Salary & Wages 82,939,020$ 18,215,401 18,586,099 (370,698)$ -1.99%21.96%64,723,619$
Employee Benefits 25,162,820 6,722,842 6,187,934 534,908 8.64%26.72%18,439,978
Administrative Expenses 2,064,546 690,850 532,979 157,871 29.62%33.46%1,373,696
Printing & Publication 420,350 59,812 49,612 10,200 20.56%14.23%360,538
Training & Meetings 906,798 105,855 97,059 8,796 9.06%11.67%800,943
Operating Materials & Supplies 21,964,434 4,723,103 5,129,250 (406,147) -7.92%21.50%17,241,331
Contractual Services 19,144,782 4,122,065 4,150,945 (28,880) -0.70%21.53%15,022,717
Professional Services 6,920,852 906,554 657,391 249,163 37.90%13.10%6,014,298
Research & Monitoring 1,547,700 576,520 671,879 (95,359) -14.19%37.25%971,180
Repairs & Maintenance 29,717,346 7,589,125 8,159,770 (570,645) -6.99%25.54%22,128,221
Utilities 9,329,726 3,166,046 2,547,235 618,811 24.29%33.94%6,163,680
Other Materials, Supplies,
and Services 5,545,580 910,119 906,326 3,793 0.42%16.41%4,635,461
Net Cost Allocation (21,713,080) (4,881,091) (5,014,470) 133,379 -2.66%22.48%(16,831,989)
Net Operating Requirements 183,950,874 42,907,201 42,662,009 245,192 0.57%23.33%141,043,673
Gallonage Flow (MG)68,620.00 16,881.01 17,208.88 (327.87) -1.91%
Gallonage Flow (MGD)188.00 183.49 187.05 (3.56) -1.90%
Gallonage Flow ($'s /MG)$2,681.00 $2,541.74 $2,479.07 $62.67 2.53%
Description
FY 2021-22 First Quarter Financial Report
Section 2 - Page 4
Revenue Percent Revenue Increase Increase
Budget Through Budget Remaining Through (Decrease)(Decrease)
Description 2021-22 09/30/21 Realized Budget 09/30/20 $%
Service Fees 301,839,390$ 88,169$ 0.03% 301,751,221$ 40,083$ 48,086$ 119.97%
Permit Fees 12,621,177 3,538,798 28.04% 9,082,379 2,190,682 1,348,116 61.54%
Inter District Sewer Use-SAWPA & SBSD 2,653,000 689,950 26.01% 1,963,050 667,650 22,300 3.34%
Intra District Sewer Use-IRWD 4,648,984 978,535 21.05% 3,670,449 964,502 14,033 1.45%
Sludge Disposal-IRWD 6,100,000 - 0.00% 6,100,000 2,705,266 (2,705,266) -100.00%
Capital Assessments-IRWD 7,905,000 519,265 6.57% 7,385,735 520,230 (965) -0.19%
Capital Facilities Capacity Charges 16,739,034 3,444,252 20.58% 13,294,782 1,390,677 2,053,575 147.67%
Debt Proceeds 163,775,355 164,350,308 100.35% (574,953) - 164,350,308 100.00%
Property Taxes 103,214,240 2,588,124 2.51% 100,626,116 2,241,318 346,806 15.47%
Interest Earnings 14,516,000 584,166 4.02% 13,931,834 1,757,304 (1,173,138) -66.76%
CIP Reimbursements 11,782,925 - 0.00% 11,782,925 - - 0.00%
Wastehauler 750,000 173,229 23.10% 576,771 148,666 24,563 16.52%
Grant Revenue 464,000 - 0.00% 464,000 - - 0.00%
CNG Sales 400,000 62,139 15.53% 337,861 47,821 14,318 29.94%
Rents & Leases 600,000 126,002 21.00% 473,998 197,660 (71,658) -36.25%
Other Revenues 2,779,105 192,388 6.92% 2,586,717 98,007 94,381 96.30%
Power Sales 25,000 95,659 382.64% (70,659) 10,477 85,182 813.04%
Other Sales 50,000 16,790 33.58% 33,210 983 15,807 1608.04%
Total Revenues 650,863,210$ 177,447,774$ 27.26% 473,415,436$ 12,981,326$ 164,466,448$ 1266.95%
Summary of Revenues
For the Three Months Ended September 30, 2021
Operating Budget Review
Section 2 - Page 5
FY 2021-22 First Quarter Financial Report
Summary of Collection, Treatment, & Disposal Expenses by Line Item
For the Three Months Ended September 30, 2021
Expense Percent Expense Increase
Budget Through Budget Remaining Through (Decrease)
Description 2021-22 09/30/21 Expensed Budget 09/30/20 $
Salaries, Wages & Benefits
Salaries & Wages 82,939,020$ 18,215,401$ 21.96% 64,723,619$ 18,586,099$ (370,698)$ -1.99%
Employee Benefits
Retirement 11,594,420 3,093,021 26.68%8,501,399 3,046,351 46,670 1.53%
Group Insurances 11,962,600 3,166,984 26.47%8,795,616 2,721,516 445,468 16.37%
Tuition & Certification Reimb 80,600 36,258 44.99%44,342 19,216 17,042 88.69%
Edu. degrees, Cert. & Lic.622,400 171,241 27.51%451,159 164,950 6,291 3.81%
Uniform Rental 113,400 21,468 18.93%91,932 26,667 (5,199) -19.50%
Workers' Compensation 518,600 195,000 37.60%323,600 129,703 65,297 50.34%
Unemployment Insurance 151,500 5,329 3.52%146,171 51,381 (46,052) -89.63%
EMT Supplemental Benefits 119,300 33,541 28.11%85,759 28,150 5,391 19.15%
Total Benefits 25,162,820 6,722,842 26.72% 18,439,978 6,187,934 534,908 8.64%
Salaries, Wages & Benefits 108,101,840 24,938,243 23.07% 83,163,597 24,774,033 164,210 0.66%
Matl, Supplies, & Services
Administrative Expenses
Memberships 708,350 297,157 41.95%411,193 277,300 19,857 7.16%
Office Exp - Supplies 65,971 10,209 15.47%55,762 5,845 4,364 74.66%
Postage 50,750 6,079 11.98%44,671 11,397 (5,318) -46.66%
Books & Publications 38,685 7,116 18.39%31,569 7,035 81 1.15%
Forms 590 - 0.00%590 - - N/A
Small Computer Items 950,500 266,865 28.08%683,635 190,140 76,725 40.35%
Minor Furniture & Fixtures 249,700 103,424 41.42%146,276 41,262 62,162 150.65%
Subtotal 2,064,546 690,850 33.46%1,373,696 532,979 157,871 29.62%
Printing & Publication
Repro-In-House 235,350 33,067 14.05%202,283 37,622 (4,555) -12.11%
Printing-Outside 42,750 1,253 2.93%41,497 8,154 (6,901) -84.63%
Notices & Ads 142,200 25,492 17.93%116,708 3,836 21,656 564.55%
Photo Processing 50 - 0.00%50 - - N/A
Subtotal 420,350 59,812 14.23%360,538 49,612 10,200 20.56%
Training & Meetings
Meetings 113,590 2,521 2.22%111,069 2,230 291 13.05%
Training 793,208 103,334 13.03%689,874 94,829 8,505 8.97%
Subtotal 906,798 105,855 11.67%800,943 97,059 8,796 9.06%
Operating Mat'ls & Supplies
Chemical Coagulants 10,670,543 2,180,689 20.44%8,489,854 2,470,859 (290,170) -11.74%
Odor & Corrosion Control 7,643,709 1,664,150 21.77%5,979,559 1,630,570 33,580 2.06%
Disinfection 133,000 15,505 11.66%117,495 173,091 (157,586) -91.04%
Chemicals - Misc & Cogen 437,000 113,537 25.98%323,463 75,097 38,440 51.19%
Gasoline, Diesel & Oil 623,372 174,189 27.94%449,183 135,462 38,727 28.59%
Tools 676,155 172,561 25.52%503,594 213,333 (40,772) -19.11%
Safety equipment/tools 747,620 143,035 19.13%604,585 156,032 (12,997) -8.33%
Solv, Paints & Jan. Supplies 113,606 41,001 36.09%72,605 27,602 13,399 48.54%
Lab Chemicals & Supplies 660,249 148,769 22.53%511,480 155,402 (6,633) -4.27%
Misc. Operating Supplies 182,680 54,543 29.86%128,137 87,197 (32,654) -37.45%
Property Tax Fees 76,500 15,124 19.77%61,376 4,605 10,519 228.43%
Subtotal 21,964,434 4,723,103 21.50%17,241,331 5,129,250 (406,147) -7.92%
Contractual Services
Solids Removal 13,100,000 2,930,718 22.37%10,169,282 2,940,211 (9,493) -0.32%
Other Waste Disposal 988,500 195,545 19.78%792,955 222,783 (27,238) -12.23%
Groundskeeping 200,000 42,842 21.42%157,158 42,906 (64) -0.15%
Janitorial 640,280 205,762 32.14%434,518 211,295 (5,533) -2.62%
Outside Lab Services 356,590 62,775 17.60%293,815 36,047 26,728 74.15%
Oxygen 370,000 116,806 31.57%253,194 128,006 (11,200) -8.75%
County Service Fee 503,672 6,820 1.35%496,852 5,137 1,683 32.76%
Temporary Services 607,000 88,528 14.58%518,472 82,546 5,982 7.25%
Security Services 1,600,000 413,613 25.85%1,186,387 414,128 (515) -0.12%
Other 778,740 58,656 7.53%720,084 67,886 (9,230) -13.60%
Subtotal 19,144,782 4,122,065 21.53%15,022,717 4,150,945 (28,880) -0.70%
Increase
(Decrease)
%
Section 2 - Page 6
(Continued)
Operating Budget Review
Summary of Collection, Treatment, & Disposal Expenses by Line Item
For the Three Months Ended September 30, 2021
Expense Expense Increase Increase
Budget Through Remaining Through (Decrease)(Decrease)
Description 2021-22 09/30/21 Expensed Budget 09/30/20 $%
Continued:
Professional Services
Legal 1,542,600 282,360 18.30% 1,260,240 44,222 238,138 538.51%
Audit & Accounting 287,800 67,925 23.60% 219,875 28,465 39,460 138.63%
Engineering 1,318,000 173,922 13.20% 1,144,078 167,398 6,524 3.90%
Enviro Scientific Consulting 679,000 5,029 0.74% 673,971 4,130 899 21.77%
Software Prgm Consulting 707,000 126,466 17.89% 580,534 193,395 (66,929) -34.61%
Advocacy Efforts 187,975 36,034 19.17% 151,941 35,100 934 2.66%
Industrial Hygiene Services 100,000 12,539 12.54% 87,461 - 12,539 N/A
Labor Negotiation Services - 609 N/A (609) - 609 N/A
Other 2,098,477 201,670 9.61% 1,896,807 184,681 16,989 9.20%
Subtotal 6,920,852 906,554 13.10% 6,014,298 657,391 249,163 37.90%
Research & Monitoring
Environmental Monitoring 797,700 44,425 5.57% 753,275 150,018 (105,593) -70.39%
Air Quality Monitoring 150,000 11,960 7.97% 138,040 21,861 (9,901) -45.29%
Research 600,000 520,135 86.69% 79,865 500,000 20,135 4.03%
Subtotal 1,547,700 576,520 37.25% 971,180 671,879 (95,359) -14.19%
Repairs & Maintenance
Materials & Services 23,380,374 4,156,180 17.78% 19,224,194 5,856,209 (1,700,029) -29.03%
Svc. Mtc. Agreements 6,336,972 3,432,945 54.17% 2,904,027 2,303,561 1,129,384 49.03%
Subtotal 29,717,346 7,589,125 25.54% 22,128,221 8,159,770 (570,645) -6.99%
Utilities
Telephone 506,084 127,570 25.21% 378,514 127,617 (47) -0.04%
Diesel For Generators 43,000 10,971 25.51% 32,029 3,165 7,806 246.64%
Natural Gas 1,005,000 391,613 38.97% 613,387 247,341 144,272 58.33%
Power 6,728,435 2,324,218 34.54% 4,404,217 1,899,956 424,262 22.33%
Water 1,047,207 311,674 29.76% 735,533 269,156 42,518 15.80%
Subtotal 9,329,726 3,166,046 33.94% 6,163,680 2,547,235 618,811 24.29%
Other Operating Supplies
Outside Equip Rental 100,000 6,807 6.81% 93,193 8,520 (1,713) -20.11%
Insurance Premiums 32,900 36,633 111.35% (3,733) 31,451 5,182 16.48%
Prop & Gen Liab Insurance 2,205,000 534,994 24.26% 1,670,006 551,241 (16,247) -2.95%
Freight 150,000 29,346 19.56% 120,654 45,804 (16,458) -35.93%
Misc. Operating Expense 623,927 117,447 18.82% 506,480 73,236 44,211 60.37%
Regulatory Operating Fees 1,090,024 166,333 15.26% 923,691 186,060 (19,727) -10.60%
Subtotal 4,201,851 891,560 21.22% 3,310,291 896,312 (4,752) -0.53%
General Mgr Contingency
& Reappropriations 1,204,549 - 0.00% 1,204,549 - - N/A
Other Non-Oper Expense 139,180 18,559 13.33% 120,621 10,014 8,545 85.33%
Total Materials,
Supplies & Services 97,562,114 22,850,049 23.42% 74,712,065 22,902,446 (52,397) -0.23%
Total Expenditures 205,663,954 47,788,292 23.24% 157,875,662 47,676,479 111,813 0.23%
Cost Allocation (21,713,080) (4,881,091) 22.48% (16,831,989) (5,014,470) 133,379 2.66%
Net Operating Requirements 183,950,874$ 42,907,201$ 23.33%141,043,673$ 42,662,009$ 245,192$ 0.57%
Percent
Budget
Section 2 - Page 7
FY 2021-22 First Quarter Financial Report
Summary of Collection, Treatment, & Disposal Expenses by Process
For the Three Months Ended September 30, 2021
Increase Increase
Actual Actual (Decrease)(Decrease)
09/30/21 09/30/20 $%
Process:
Preliminary Treatment 2,493,867$ 3,036,592$ (542,725)$ -17.87%
Primary Treatment 4,552,762 4,691,716 (138,954) -2.96%
Secondary Treatment 2,794,068 2,810,940 (16,872) -0.60%
Cryogenic Plant (Plant 2)223,764 260,474 (36,710) -14.09%
Effluent Disposal 301,692 293,220 8,472 2.89%
Solids Handling 12,289,770 11,240,485 1,049,285 9.33%
Cogeneration 5,783,139 5,013,827 769,312 15.34%
Utilities 1,046,548 1,292,600 (246,052) -19.04%
Electrical Distribution 841,308 540,508 300,800 55.65%
Miscellaneous Buildings 2,912,045 2,926,468 (14,423) -0.49%
External Location 115,355 163,253 (47,898) -29.34%
Nerissa Vessel 60,426 68,865 (8,439) -12.25%
Laboratory 3,594,592 4,586,642 (992,050) -21.63%
Collections 5,897,865 5,736,419 161,446 2.81%
Net Operating Requirements 42,907,201$ 42,662,009$ 245,192$ 0.57%
Section 2 - Page 8
Staffing Trends
Full Time Equivalents
September 30, 2021
At September 30, 2021, the total head count was 618 employees, or a full time equivalency of 612.
Operating Budget Review
450
500
550
600
650
700
6/30/18 6/30/19 6/30/20 6/30/21 9/30/21
603 614 606 619 612
32 22 34 20 27
Actual Vacant
635 636 640 639 639
Section 2 - Page 9
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FY 2021-22 First Quarter Financial Report
This Page Intentionally Left Blank
Section 2 - Page 10
Capital Improvement Program
By Process Area and Project Driver
For the Three Months Ended September 30, 2021
Capital Improvement Program Budget Review
Total Capital Improvement Outlays by Project Driver - $20,960,203
Rehabilitation and Replacement: 61.9%
Strategic Initiatives: 27.4%
Additional Capacity: 4.9%
Regulatory: 5.8%
Total Capital Improvement Outlays by Process Area - $20,960,203
Collections Facilities: 18.2%
Liquid Treatment: 64.1%
Solids Handling & Digestion: 3.7%
Utility Systems: 4.5%
Support Facilities: 4.0%
Other: 5.5%
Section 3 - Page 1
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□
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□
□
□
□
□
□
FY 2021-22 First Quarter Financial Report
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2021
2021-22 2021-22 2021-22
Cashflow Actual at Projected
Budget 9/30/2021 Outlay
Collection System Improvement Projects
Collections Facilities
Santa Ana Trunk Sewer Rehabilitation 914,334 39,382 145,700
Greenville-Sullivan Trunk Improvements 286,363 - 286,400
Taft Branch Capacity Improvements 1,422,835 41,148 1,322,200
Newhope-Placentia Trunk Replacement 5,662,265 1,517,293 9,788,600
Westminster Blvd Force Main Replacement 8,458,681 487,307 5,974,500
Rehabilitation of Western Regional Sewers 13,051,457 149,503 14,342,500
Interstate 405 Widening Project Impacts on OC San Sewers 21,696 877,447 930,500
Seal Beach Pump Station Replacement 2,133,205 - 2,531,900
Bay Bridge Pump Station Replacement 3,676,612 191,742 3,863,500
Newport Beach Pump Station Pressurization Improvements 326,219 27,132 265,900
Fairview Trunk Sewer Rehabilitation 187,716 31,985 60,600
Gisler Red-Hill Interceptor & Baker Force Main Rehabilitation 772,900 166,397 1,234,900
MacArthur Force Main Improvement 417,411 16,594 472,400
Edinger Pump Station Replacement 74,449 13,481 72,000
Slater Pump Station Rehabilitation 235,537 - 235,600
Small Construction Projects Program - Collections 2,614,225 151,193 2,016,300
Operations & Maintenance Capital Program - Collections - 20,973 21,000
Planning Studies Program - Collections - 49,923 503,000
Sunflower and Red Hill Interceptor Repairs 2,704,438 22,813 2,894,400
Subtotal - Collections Facilities 42,960,343 3,804,313 46,961,900
Revenue Area 14
Bay Bridge Pumping Station Rehabilitation (3.62%) 138,092 7,202 145,200
Newport Beach Pump Station Pressurization Improve (0.27%) 883 73 800
Subtotal - Revenue Area 14 138,975 7,275 146,000
Total Collection System Improvement Projects 43,099,318 3,811,588 47,107,900
Section 3 - Page 2
(Continued)
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2021
2021-22 2021-22 2021-22
Cashflow Actual at Projected
Budget 9/30/2021 Outlay
Treatment & Disposal Projects
Headworks
Headworks Rehabilitation at Plant 1 33,064,764 7,461,190 36,958,500
Headworks Modifications at P2 for GWRS Final Expansion 8,481,733 1,438,892 5,830,000
Subtotal - Headworks 41,546,497 8,900,082 42,788,500
Primary Treatment
Primary Sedimentation Basins 3-5 Replacement at Plant 1 459,659 41,283 470,500
Primary Sedimentation Basins 6-31 Reliability Improv at P1 606,804 74,111 261,200
Primary Treatment Rehabilitation at Plant 2 19,836,957 283,440 15,770,600
Subtotal - Primary Treatment 20,903,420 398,834 16,502,300
Secondary Treatment
Return Activated Sludge Piping Replacement at Plant 1 144,269 753 19,800
Activated Sludge-1 Aeration Basin & Blower Rehab at P1 485,387 - 485,400
Return Activated Sludge Piping Replacement at Plant 2 3,285,100 305,272 2,222,900
Activated Sludge Aeration Basin Rehabilitation at Plant 2 163,451 - 163,500
Subtotal - Secondary Treatment 4,078,207 306,025 2,891,600
Solids Handling & Digestion
Digester Ferric Chloride Piping Replacement at Plant 1 723,747 28,552 868,300
Sludge Dewatering and Odor Control at Plant 2 694,948 (12,177) 15,100
Interim Food Waste Receiving Facility 3,201,672 - 6,600
TPAD Digester Facility at Plant 2 10,066,820 727,401 8,228,700
Digesters Rehabilitation at Plant No. 2 537,702 24,537 97,800
Subtotal - Solids Handling & Digestion 15,224,889 768,313 9,216,500
Ocean Outfall Systems
Ocean Outfall System Rehabilitation 23,933,041 3,829,757 19,574,400
Sodium Bisulfite Station Rehabilitation at Plant 2 60,381 - 60,400
Subtotal - Ocean Outfall Systems 23,993,422 3,829,757 19,634,800
Utility Systems
Electrical Power Distribution System Improvements 2,107,681 255,298 1,426,800
Digester Gas Facilities Rehabilitation 1,398,801 423,972 1,739,900
Natural Gas Pipelines Replacement at Plants 1 and 2 221,883 18,590 615,800
Central Generation Engine Overhauls at Plants 1 and 2 3,788,815 236,619 3,347,400
Power Building Structural Seismic Improv at Plants 1 & 2 161,114 - 39,000
Uninterruptable Power Supply Improvements at Plant 1 625,925 12,241 313,200
Network and Server Relocation at Plant 1 179,978 - 180,000
Warehouse, Electrical, & 12kV Serv Center Replace at P2 - 805 900
Subtotal - Utility Systems 8,484,197 947,525 7,663,000
Capital Improvement Program Budget Review
Section 3 - Page 3
(Continued)
FY 2021-22 First Quarter Financial Report
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2021
2021-22 2021-22 2021-22
Cashflow Actual at Projected
Budget 9/30/2021 Outlay
Process Related Special Projects
Safety Improvements Program 248,320 (8,393) (8,400)
Subtotal - Process Related Special Projects 248,320 (8,393) (8,400)
Information Management Systems
Process Control Systems Upgrades 3,406,549 34,678 3,162,000
Project Management Information System 294,481 73,520 330,000
Information Technology Capital Program 1,778,736 53,225 2,624,400
Geographic Information System 16,283 117,290 165,400
EAM Software and Process Implementation 448,311 26,479 339,100
Process Control Systems Upgrades Study 504,920 20,053 31,100
Subtotal - Information Management Systems 6,449,280 325,245 6,652,000
Strategic & Master Planning
Planning Studies Program 4,105,202 261,846 2,929,700
Subtotal - Strategic & Master Planning 4,105,202 261,846 2,929,700
Water Management Projects
GWRS Final Expansion Coordination 309,211 106,040 302,800
Subtotal - Water Management Projects 309,211 106,040 302,800
Research
Research Program 806,894 123,502 804,500
Subtotal - Research 806,894 123,502 804,500
Support Facilities
Small Construction Projects Program 9,387,732 541,733 4,024,400
Operations & Maintenance Capital Program 2,022,639 27,432 705,600
Headquarters Complex 45,106,221 214,398 51,030,200
South Perimeter Security & Utility Improvements at Plant 1 3,852,526 36,567 2,936,300
Support Buildings Seismic Improvements at Plant 1 776,979 9,580 40,000
Collections Yard Relocation 39,814 - 39,900
Operations and Maintenance Complex at Plant 2 355,419 9,380 267,500
Subtotal - Support Facilities 61,541,330 839,090 59,043,900
Section 3 - Page 4
(Continued)
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2021
2021-22 2021-22 2021-22
Cashflow Actual at Projected
Budget 9/30/2021 Outlay
Others
Capital Improvement Program Management Services 13,167 753 15,500
Subtotal - Others 13,167 753 15,500
Additional Charges to CIP Completed at 6/30/21 - (8,859) 142,900
Total Treatment and Disposal Projects 187,704,036 16,789,760 168,579,600
Capital Equipment Purchases 3,785,600 358,855 3,407,100
Total Collection, Treatment and Disposal Projects
and Capital Equipment Purchases 234,588,954 20,960,203 219,094,600
Add: Future Rehab and Replacement 5,000,000 - -
Less: Savings and Deferrals (15,028,451) - -
Net Collection, Treatment and Disposal Projects
and Capital Equipment Purchases 224,560,503$ 20,960,203$ 219,094,600$
Capital Improvement Program Budget Review
Section 3 - Page 5
FY 2021-22 First Quarter Financial Report
Summary of Capital Improvement Construction Requirements - Project Life
For the Three Months Ended September 30, 2021
Current Total
Approved June 30, 2021 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30, 2022 Budget
Collection System Improvement Projects
Collections Facilities
Santa Ana Trunk Sewer Rehabilitation 54,620,000 - 145,700 145,700 54,474,300
Greenville-Sullivan Trunk Improvements 48,600,000 - 286,400 286,400 48,313,600
Taft Branch Capacity Improvements 16,800,000 273,632 1,322,200 1,595,832 15,204,168
Newhope-Placentia Trunk Replacement 112,000,000 103,242,051 9,788,600 113,030,651 (1,030,651)
Yorba Linda Dosing Station Installation 11,000,000 - - - 11,000,000
Beach Relief / Knott / Miller Holder Trunk Rehabilitation 35,132,000 - - - 35,132,000
Westminster Blvd Force Main Replacement 44,000,000 27,735,893 5,974,500 33,710,393 10,289,607
Rehabilitation of Western Regional Sewers 82,000,000 18,727,849 14,342,500 33,070,349 48,929,651
Interstate 405 Widening Project Impacts on OC San Sewers 250,000 239,821 930,500 1,170,321 (920,321)
Seal Beach Pump Station Replacement 87,000,000 3,872,431 2,531,900 6,404,331 80,595,669
Los Alamitos Sub-Trunk Extension 117,000,000 - - - 117,000,000
Crystal Cove Pump Station Rehabilitation 13,200,000 - - - 13,200,000
Bay Bridge Pump Station Replacement 71,321,200 3,224,995 3,863,500 7,088,495 64,232,705
Newport Beach Pump Station Pressurization Improvements 4,288,390 435,361 265,900 701,261 3,587,129
Fairview Trunk Sewer Rehabilitation 17,000,000 - 60,600 60,600 16,939,400
MacArthur Pump Station Rehabilitation 9,800,000 - - - 9,800,000
Main Street Pump Station Rehabilitation 37,000,000 - - - 37,000,000
Gisler Red-Hill Interceptor & Baker Force Main Rehabilitation 39,000,000 870,846 1,234,900 2,105,746 36,894,254
MacArthur Force Main Improvement 3,500,000 57,943 472,400 530,343 2,969,657
North Trunk Improvements 10,000,000 - - - 10,000,000
Edinger Pump Station Replacement 13,500,000 - 72,000 72,000 13,428,000
Slater Pump Station Rehabilitation 31,000,000 - 235,600 235,600 30,764,400
Small Construction Projects Program - Collections 12,552,000 2,513,928 2,016,300 4,530,228 8,021,772
Operations & Maintenance Capital Program - Collections 821,719 535,606 21,000 556,606 265,113
Planning Studies Program - Collections 5,533,600 3,665,360 503,000 4,168,360 1,365,240
Research Program - Collections 154,000 46,250 - 46,250 107,750
Sunflower and Red Hill Interceptor Repairs 6,999,998 513,231 2,894,400 3,407,631 3,592,367
Subtotal - Collections Facilities 884,072,907 165,955,197 46,961,900 212,917,097 671,155,810
Revenue Area 14:
Bay Bridge Pumping Station Rehabilitation (3.62%) 2,678,800 121,130 145,200 266,330 2,412,470
Newport Beach Pump Station Pressurization Improve (0.27%) 11,610 1,179 800 1,979 9,631
Subtotal - Revenue Area 14 2,690,410 122,309 146,000 268,309 2,422,101
Total Collection System Improvement Projects 886,763,317 166,077,506 47,107,900 213,185,406 673,577,911
Section 3 - Page 6
(Continued)
Summary of Capital Improvement Construction Requirements - Project Life
For the Three Months Ended September 30, 2021
Current Total
Approved June 30, 2021 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30, 2022 Budget
Treatment & Disposal Projects
Headworks
Headworks Rehabilitation at Plant 1 340,000,000 36,669,521 36,958,500 73,628,021 266,371,979
Headworks Modifications at P2 for GWRS Final Expansion 32,000,000 18,549,280 5,830,000 24,379,280 7,620,720
Subtotal - Headworks 372,000,000 55,218,801 42,788,500 98,007,301 273,992,699
Primary Treatment
Primary Sedimentation Basins 3-5 Replacement at Plant 1 127,000,000 603,492 470,500 1,073,992 125,926,008
Primary Sedimentation Basins 6-31 Reliability Improv at P1 14,000,000 2,019,464 261,200 2,280,664 11,719,336
Primary Treatment Rehabilitation at Plant 2 195,000,000 35,711,624 15,770,600 51,482,224 143,517,776
B/C-Side Primary Clarifiers Rehabilitation at Plant 2 279,842,000 - - - 279,842,000
Subtotal - Primary Treatment 615,842,000 38,334,580 16,502,300 54,836,880 561,005,120
Secondary Treatment
Return Activated Sludge Piping Replacement at Plant 1 9,300,000 9,172,692 19,800 9,192,492 107,508
Activated Sludge-1 Aeration Basin & Blower Rehab at P1 270,000,000 - 485,400 485,400 269,514,600
Return Activated Sludge Piping Replacement at Plant 2 10,000,000 6,368,931 2,222,900 8,591,831 1,408,169
Activated Sludge Aeration Basin Rehabilitation at Plant 2 65,600,000 - 163,500 163,500 65,436,500
Subtotal - Secondary Treatment 354,900,000 15,541,623 2,891,600 18,433,223 336,466,777
Solids Handling & Digestion
Digester Ferric Chloride Piping Replacement at Plant 1 1,360,000 261,018 868,300 1,129,318 230,682
Sludge Dewatering and Odor Control at Plant 2 90,477,000 86,433,925 15,100 86,449,025 4,027,975
Interim Food Waste Receiving Facility 6,300,000 1,347,003 6,600 1,353,603 4,946,397
TPAD Digester Facility at Plant 2 455,000,000 6,220,071 8,228,700 14,448,771 440,551,229
Digester P, Q, R, and S Replacement 165,900,000 - - - 165,900,000
Digesters Rehabilitation at Plant No. 2 40,632,000 82,197 97,800 179,997 40,452,003
Subtotal - Solids Handling & Digestion 759,669,000 94,344,214 9,216,500 103,560,714 656,108,286
Ocean Outfall Systems
Ocean Outfall System Rehabilitation 166,000,000 94,720,368 19,574,400 114,294,768 51,705,232
Sodium Bisulfite Station Rehabilitation at Plant 2 3,834,000 - 60,400 60,400 3,773,600
Emergency Overflow Pipes & Windwall Rehabilitation at P2 4,200,000 - - - 4,200,000
Subtotal - Ocean Outfall Systems 174,034,000 94,720,368 19,634,800 114,355,168 59,678,832
Utility Systems
Electrical Power Distribution System Improvements 26,500,000 1,515,397 1,426,800 2,942,197 23,557,803
Digester Gas Facilities Rehabilitation 173,000,000 14,783,708 1,739,900 16,523,608 156,476,392
Natural Gas Pipelines Replacement at Plants 1 and 2 2,000,000 1,373,777 615,800 1,989,577 10,423
Central Generation Engine Overhauls at Plants 1 and 2 44,000,000 1,361,621 3,347,400 4,709,021 39,290,979
Power Building Structural Seismic Improv at Plants 1 & 2 5,400,000 - 39,000 39,000 5,361,000
Capital Improvement Program Budget Review
Section 3 - Page 7
(Continued)
FY 2021-22 First Quarter Financial Report
Summary of Capital Improvement Construction Requirements - Project Life
For the Three Months Ended September 30, 2021
Current Total
Approved June 30, 2021 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30, 2022 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 1,150,638 313,200 1,463,838 5,536,162
12.47 kV Switchgear Replacement at CenGen at Plant 1 17,000,000 - - - 17,000,000
Network and Server Relocation at Plant 1 13,000,000 - 180,000 180,000 12,820,000
Standby Generator Feeders for P1 Secondary Systems 2,800,000 - - - 2,800,000
Central Generation Rehabilitation at Plant 2 108,000,000 - - - 108,000,000
Warehouse, Electrical, & 12kV Serv Center Replace at P2 65,000,000 625,371 900 626,271 64,373,729
Subtotal - Utility Systems 532,152,000 20,810,512 7,663,000 28,473,512 503,678,488
Process Related Special Projects
Safety Improvements Program 16,000,000 11,949,615 (8,400) 11,941,215 4,058,785
Subtotal - Process Related Special Projects 16,000,000 11,949,615 (8,400) 11,941,215 4,058,785
Information Management Systems
Process Control Systems Upgrades 37,000,000 - 3,162,000 3,162,000 33,838,000
Project Management Information System 2,280,000 1,369,758 330,000 1,699,758 580,242
Information Technology Capital Program 10,000,000 949,587 2,624,400 3,573,987 6,426,013
Geographic Information System 4,568,000 3,802,488 165,400 3,967,888 600,112
EAM Software and Process Implementation 9,200,000 6,316,356 339,100 6,655,456 2,544,544
Process Control Systems Upgrades Study 3,400,000 2,499,708 31,100 2,530,808 869,192
Subtotal - Information Management Systems 66,448,000 14,937,897 6,652,000 21,589,897 44,858,103
Strategic & Master Planning
Planning Studies Program 23,118,400 5,590,699 2,929,700 8,520,399 14,598,001
Subtotal - Strategic & Master Planning 23,118,400 5,590,699 2,929,700 8,520,399 14,598,001
Water Management Projects
GWRS Final Expansion Coordination 1,332,000 747,432 302,800 1,050,232 281,768
Subtotal - Water Management Projects 1,332,000 747,432 302,800 1,050,232 281,768
Research
Research Program 8,346,000 817,484 804,500 1,621,984 6,724,016
Subtotal - Research 8,346,000 817,484 804,500 1,621,984 6,724,016
Section 3 - Page 8
(Continued)
Summary of Capital Improvement Construction Requirements - Project Life
For the Three Months Ended September 30, 2021
Current Total
Approved June 30, 2021 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30, 2022 Budget
Support Facilities
Small Construction Projects Program 77,448,000 15,450,267 4,024,400 19,474,667 57,973,333
Operations & Maintenance Capital Program 14,800,281 4,436,822 705,600 5,142,422 9,657,859
Laboratory Rehabilitation at Plant 1 44,200,000 - - - 44,200,000
Headquarters Complex 167,500,000 38,433,116 51,030,200 89,463,316 78,036,684
South Perimeter Security & Utility Improvements at Plant 1 10,000,000 1,571,099 2,936,300 4,507,399 5,492,601
Support Buildings Seismic Improvements at Plant 1 23,730,000 22,239 40,000 62,239 23,667,761
Collections Yard Relocation 1,900,000 - 39,900 39,900 1,860,100
Operations and Maintenance Complex at Plant 2 95,000,000 - 267,500 267,500 94,732,500
Subtotal - Support Facilities 434,578,281 59,913,543 59,043,900 118,957,443 315,620,838
Others
Capital Improvement Program Management Services 700,000 355,310 15,500 370,810 329,190
Subtotal - Others 700,000 355,310 15,500 370,810 329,190
Additional Charges to CIP Completed at 6/30/21 - - 142,900 142,900 (142,900)
Total Treatment and Disposal Projects 3,359,119,681 413,282,078 168,579,600 581,861,678 2,777,258,003
Capital Equipment Purchases 9,062,800 - 3,407,100 3,407,100 5,655,700
Total Collection, Treatment and Disposal Projects
and Capital Equipment Purchases 4,254,945,798$ $579,359,584 $219,094,600 $798,454,184 $3,456,491,614
Capital Improvement Program Budget Review
Section 3 - Page 9
FY 2021-22 First Quarter Financial Report
This Page Intentionally Left Blank
Section 3 - Page 10
Capital Assets Schedule & Debt Service Budget Review
For the Three Months Ended September 30, 2021
Balance Year-to-Date Balance
07/01/21 Activity 09/30/21
CONSTRUCTION IN PROGRESS (CIP):
Treatment Plant 136,187,441$ 17,148,615$ 153,336,056$
Collection System 265,012,603 3,811,588 268,824,191
Subtotal 401,200,044 20,960,203 422,160,247
PROPERTY, PLANT & EQUIPMENT (at cost):
Land and Property Rights 57,680,623 - 57,680,623
Collection Lines and Pump Stations 897,488,748 - 897,488,748
Treatment Facilities 2,842,786,854 - 2,842,786,854
Effluent disposal facilities 96,972,016 - 96,972,016
Solids disposal facilities 3,463,236 - 3,463,236
General and administrative facilities 248,712,229 - 248,712,229
Excess purchase price over book value on acquired assets 19,979,000 - 19,979,000
Subtotal 4,167,082,706 - 4,167,082,706
Total Property, Plant & Equipment & CIP 4,568,282,750$ 20,960,203$ 4,589,242,953$
2021-22 Year-to-Date Remaining
Budget Payments % of Budget Budget
Principal Payments by Debt Issue:
2010A BABs - - --
2010C BABs - - --
2011A COP 75,370,000 61,575,000 81.70%13,795,000
2012A COP - - --
2012B COP 1,500,000 - 0.00%1,500,000
2014A COP 8,245,000 - 0.00%8,245,000
2015A COP - - --
2016A COP 4,865,000 - 0.00%4,865,000
2017A COP - - --
2018A CANs 102,200,000 102,200,000 100.00%-
2021A COP 5,525,000 - 0.00%5,525,000
Subtotal Principal Payments 197,705,000 163,775,000 82.84% 33,930,000
Interest Expense by Debt Issue:
2010A BABs 2,986,574 991,837 33.21%1,994,737
2010C BABs 6,724,010 2,233,155 33.21%4,490,855
2011A COP 689,750 394,075 57.13%295,675
2012A COP 3,735,900 934,050 25.00%2,801,850
2012B COP 276,150 68,975 24.98%207,175
2014A COP 2,804,000 701,000 25.00%2,103,000
2015A COP 6,375,500 1,593,850 25.00%4,781,650
2016A COP 6,524,800 1,631,200 25.00%4,893,600
2017A COP 3,290,750 822,775 25.00%2,467,975
2018A CANs - 439,978 N/A (439,978)
2021A COP 3,393,921 1,614,614 47.57%1,779,307
Subtotal Interest Expense 36,801,355 11,425,509 31.05% 25,375,846
Total Debt Service 234,506,355$ 175,200,509$ 74.71% 59,305,846$
Section 4 - Page 1
Capital Assets Schedule
Capital Assets Schedule & Debt Service Budget Review
Debt Service Budget Review
FY 2021-22 First Quarter Financial Report
This Page Intentionally Left Blank
Section 4 - Page 2
General Liability and Property Fund Budget Review
For the Three Months Ended September 30, 2021
Actual Actual
2021-22 Through Through
Budget 09/30/21 09/30/20
Revenues:
In-Lieu Premiums 2,140,000$ 534,994$ 25.00%1,605,006$ 551,241$ (16,247)$
Service Department Allocations - 1,776 N/A (1,776) 1,776 -
Total Revenues 2,140,000 536,770 25.08%1,603,230 553,017 (16,247)
Expenses:
Benefits/Claims 40,000 115 0.29%39,885 - 115
Legal Services 40,000 - 0.00%40,000 - -
Professional Services 20,000 5,913 29.57%14,087 - 5,913
Subtotal 100,000 6,028 6.03%93,972 - 6,028
Policy Premium Expense 2,509,393 613,157 24.43%1,896,236 485,048 128,109
Total Expenses 2,609,393 619,185 23.73%1,990,208 485,048 134,137
Excess Revenue (Expense)(469,393) (82,415) (386,978)$ 67,969 (150,384)
Beginning Reserves 98,000,000 98,861,957 98,648,623 213,334
Ending Reserves 97,530,607$ 98,779,542$ 98,716,592$ 62,950$
09/30/21 Budget (Decrease)
Self Insurance Budget Review
Percent
of Budget Remaining
Through 2021-22 Increase
Section 5 - Page 1
FY 2021-22 First Quarter Financial Report
Workers' Compensation Fund Budget Review
For the Three Months Ended September 30, 2021
Actual Actual
2021-22 Through Through
Budget 09/30/21 09/30/21 09/30/20
Revenues:
In-Lieu Premiums 780,000$ 195,000$ 25.00% 585,000$ 129,700$ 65,300$
Service Department Allocations - 22,425 N/A (22,425) 22,425 -
Total Revenues 780,000 217,425 27.88%562,575 152,125 65,300
Expenses:
Benefits/Claims 430,000 105,782 24.60% 324,218 123,769 (17,987)
Legal Services 80,000 - 0.00% 80,000 13,759 (13,759)
Professional Services 60,000 15,553 25.92% 44,447 - 15,553
Subtotal 570,000 121,335 21.29%448,665 137,528 (16,193)
Policy Premium Expense 271,860 66,589 24.49%205,271 51,192 15,397
Total Expenses 841,860 187,924 22.32%653,936 188,720 (796)
Excess Revenue (Expense)(61,860) 29,501 (91,361)$ (36,595) 66,096
Beginning Reserves 2,000,000 2,149,679 2,235,687 (86,008)
Ending Reserves 1,938,140$ 2,179,180$ 2,199,092$ (19,912)$
Budget (Decrease)
Percent
of Budget Remaining
Through 2021-22 Increase
Section 5 - Page 2
October 31, 2021
STAFF REPORT
Quarterly Treasurer’s Report
For the Period Ended September 30, 2021
SUMMARY
Section 17.0 of the Orange County Sanitation District's (OC San) Investment Policy
includes quarterly reporting requirements for OC San's two investment portfolios. These
two funds, the "Liquid Operating Monies," and the "Long-Term Operating Monies" are
managed by Chandler Asset Management, OC San’s external money manager.
The ongoing monitoring of OC San's investment program by staff and Callan Associates,
OC San's independent investment advisor, indicates that OC San’s investments are in
compliance with OC San'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 OC San to meet budgeted
expenditures for the next six months. OC San’s portfolios do not include any reverse
repurchase agreements or derivative securities.
ADDITIONAL INFORMATION
Performance Reports
The Quarterly Strategy Review, prepared by Chandler Asset Management, and the
Investment Measurement Service Quarterly Review, prepared by Callan Associates, is
attached for reference. Also attached are Long-Term and Liquid Operating Monies
Summary of Performance Data and Portfolio Statistics charts that depict the performance
results, estimated yield and duration, credit quality, and sector diversification of OC San’s
portfolios, as of September 30, 2021. The Liquid Operating Monies portfolio, with an
average maturity of 164 days, consists entirely of high quality fixed income investments
consistent with OC San’s investment policy.
Portfolio Performance Summary
The following table presents a performance summary of OC San’s portfolios as compared
to their benchmarks as of September 30, 2021.
Quarterly Treasurer’s Report
For the Period Ended September 30, 2021
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 Dec 20 225.7 657.6
31 Mar 21 165.8 654.4
31 Jun 21 207.8 686.0
31 Sep 21 129.9 686.4
Portfolio Performance Summary As of September 30, 2021
Liquid Operating Monies (%)Long-Term Operating Monies (%)
Total Rate of Return Benchmark(1) Total Rate of Return Benchmark(1)
3 Months 0.03 0.02 0.02 0.01
6 Months 0.04 0.02 0.21 0.21
9 Months 0.08 0.04 -0.29 -0.31
12 Months 0.11 0.07 -0.08 -0.16
Annualized Since inception 30 Nov 2014 1.00 0.89 1.96 1.93
Market Value $129.9 M $686.4 M
Average Quality “AA+”/”Aaa” “AA”/”Aa1”
Current Yield (%) 1.1 1.5
Estimated Yield to Maturity (%) 0.1 0.5
Quarterly Deposits (Withdrawals) ($78.0 M) $0.0 M
Estimated Annual Income $0.1 M $10.0 M
Quarterly Treasurer’s Report
For the Period Ended September 30, 2021
Page 3 of 4
Orange County Sanitation District Investment Account Balances as of September 30, 2021
Investment Accounts
Book Balances
September 30, 2021
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
$66,534,264
3,000,000
1,031,842
67,014
50,000
192,626
564,882
129,859,149
686,521,678
3,000
500,831
$888,325,286
$85,630
0.21
0.30
0.05
0.30
0.30
0.40
0.40
0.09
0.50
0.00
0.00
0.42
0.02
Orange County Sanitation District Cost of Funds on Debt Issues as of September 30, 2021
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
2021A Fixed
TOTAL
Weighted Avg. Cost of Funds
80,000,000
157,000,000
13,795,000
100,645,000
8,170,000
56,080,000
127,510,000
136,830,000
65,815,000
133,510,000
$879,355,000
3.68
4.11
2.61
3.54
1.50
2.34
3.30
3.02
2.55
1.06
2.98
Quarterly Treasurer’s Report
For the Period Ended September 30, 2021
Page 4 of 4
ATTACHMENTS
1. Chandler Quarterly Report
2. Summary of Performance Data and Portfolio Statistics – Liquid Operating Monies
3. Summary of Performance Data and Portfolio Statistics – Long Term Operating
Monies
4. Investment Transactions and Balances in LAIF
5. Asset Summary by Asset Type – Liquid Operating Portfolio
6. Asset Summary by Asset Type – Long Term Portfolio
7. Asset Summary by Asset Type – Owner Controlled Insurance Program Escrow
Account
8. Investment Listing (Yield Analysis Report)
9. Asset Detail – Consolidated
10. Custody Transaction History – Consolidated
11. Callan Quarterly Review
12. Chandler Quarterly Review
13. Rating Agency Comparisons
1
September 30, 2021
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
The ongoing health crisis and related supply chain bottlenecks continue to have a meaningful impact on economic data,
but we believe the underlying momentum of the economy remains strong. Economic growth is expected to continue at
an above-trend pace, fueled in part by ongoing tailwinds from fiscal support, accommodative monetary policy, and
continued progress on vaccinations. Covid infection rates in the US and on a global basis are now declining, but supply
chains remain dislocated and inflation readings continue to run hot. We expect supply chain bottlenecks will continue to
put upward pressure on prices over the near- to intermediate-term but should improve next year.
Monetary policy remains highly accommodative, but the Fed is inching toward a path of policy normalization. The Federal
Open Market Committee (FOMC) kept monetary policy unchanged at its September meeting but indicated that they are
preparing to reduce the magnitude of their asset purchases. The fed funds target rate remains in the range of 0.0% to
0.25%. For now, the Fed continues to purchase $80 billion of Treasuries per month, and $40 billion of agency mortgage-
backed securities per month. However, the Fed is widely expected to make the official announcement about tapering
asset purchases at the next FOMC meeting in early November. Nevertheless, the Fed remains patient with their outlook
for rate hikes, and Fed Chair Powell has indicated that policymakers would not consider a rate hike until sometime after
the tapering process is complete in mid-2022. The median estimate among Fed policymakers calls for one 25 basis point
rate hike in 2022. We believe the Fed’s slow and steady withdrawal of monetary policy accommodation will remain
supportive of an improving labor market and growing economy.
The Treasury yield curve continued to steepen in September. The 10-year Treasury yield rose nearly 18 basis points in
September to 1.49%, while the 2-year Treasury yield rose about seven basis points to 0.28%. We believe some of the
factors that put downward pressure on longer-term rates over the summer including concerns about the Delta COVID-19
variant, market technicals, and uneven global vaccination rates, have started to ease.
The treasury yield curve is steeper on a year-over-year basis. At the end of September, the 2-year Treasury yield was about
15 basis points higher, and the 10-Year Treasury yield was about 80 basis points higher, year-over-year. We believe the
curve remains poised for further steepening, amid a growing economy and improving labor market, while the Fed is
expected to slowly normalize monetary policy.
11 1 CHANDLER
j ~~~~GEMENT
2
Consumer Prices
The Consumer Price Index (CPI) was up 5.4% year-over-year in September, versus up 5.3% year-over-year in August. Core
CPI (CPI less food and energy) was up 4.0% year-over-year in September (in line with expectations), unchanged from
August. The Personal Consumption Expenditures (PCE) index was up 4.3% year-over-year in August, versus up 4.2% in July.
Core PCE was up 3.6% year-over-year in August, unchanged from July. Current inflation readings are running well above
the Fed’s longer-run target of around 2.0%. While the Fed believes many of the factors fueling higher inflation will be
temporary, the upward pressure on inflation from supply chain bottlenecks and pandemic-related disruptions is likely to
remain elevated over the near-term.
Retail Sales
On a year-over-year basis, retail sales were up 15.1% in August. On a month-over-month basis, retail sales were stronger
than expected in August, up 0.7% versus expectations of a 0.7% decline. The month-over-month gain was driven largely
by increases in online shopping, furniture and home furnishings, and general merchandise stores. These gains were
partially offset by declines in vehicles, electronics and appliances, sporting goods, hobby, musical instrument, and
bookstores, on a seasonally adjusted basis. Excluding vehicles and gas, retail sales were up 2.0% month-over-month,
following a 1.4% decline in July.
Labor Market
U.S. nonfarm payrolls increased by 194,000 in September, versus the consensus forecast of 500,000. However, July and
August payrolls were revised up a total of 169,000. On a trailing 3-month and 6-month basis, payrolls increased at a solid
pace, up an average of 550,000 and 582,000 per month, respectively. The U-3 unemployment rate declined to 4.8% in
September from 5.2% in August, a bigger decline than expected. The labor participation rate declined slightly to 61.6% in
September, but the employment-population ratio increased modestly to 58.7%. The U-6 underemployment rate, which
includes those who are marginally attached to the labor force and employed part time for economic reasons, declined to
8.5% in September from 8.8% in August. Annualized average hourly earnings were up by 4.6% in September versus 4.0%
in August, reflecting strong wage growth driven in part by the ongoing imbalance in the supply and demand for labor.
Housing Starts
Total housing starts increased 3.9% in August to an annual pace of 1,615,000, led by multi-family starts. Single-family starts
declined 2.8% in August while multi-family starts rose 20.6%. On a year-over-year basis, housing starts were up 17.4% in
August.
11 1 CHANDLER
j ~~~~GEM ENT
3
TREASURY YIELDS 9/30/2021 6/30/2021 CHANGE
3 Month 0.04 0.04 0.02
2 Year 0.28 0.25 0.03
3 Year 0.51 0.46 0.05
5 Year 0.97 0.89 0.08
7 Year 1.29 1.24 0.05
10 Year 1.49 1.47 0.02
30 Year 2.05 2.09 (0.04)
11 1 CHANDLER
j ~~~~GEMENT
Supply and Demand Imbalances Continue to Impact Economic Data
ECONOMIC INDICATOR Current Release Prior Release
Trade Balance (73.25) $Bin AUG 21 (70.30) $Bin JUL 21
Gross Domestic Product 6.70%JUN 21 6.30% MAR 21
Unemployment Rate 4.80%SEP 21 5.20% AUG21
Prime Rate 3.25%SEP 21 3.25% AUG21
Commodity Research Bureau Index 228.92 SEP 21 218.1 7 AUG 21
Oil (West Texas Int.) $75.03 SEP 21 $68.50 AUG 21
Consumer Price Index (y/o/y) 5.40% SEP 21 5.30% AUG21
Producer Price Index (y/o/y) 10.50% AUG 21 9.60% JUL 21
Euro/Dollar l.16SEP 21 1.18 AUG 21
Source: Bloomberg
One Year Ago
(63.73) $Bin AUG 20
(31.20%)JUN20
7.80%SEP 20
3.25% SEP 20
148.51 SEP 20
$40.22 SEP 20
l.40%SEP 20
(1.60%) AUG 20
1.17 SEP 20
4
Performance Attribution
Long-Term Portfolio
The OC Sanitation Long-Term Portfolio generated a positive quarterly total return of 0.02% compared to the 0.01% total
return of the ICE Bank of America Merrill Lynch 1-5 Year US Corporate and Government AAA-A Index. Treasury interest
rates were volatile during the quarter as the impact of the Delta variant helped to keep interest rates lower earlier in the
quarter. However, as the economy continued to perform and the Federal Reserve indicated a tapering of quantitative
easing was likely later in 2021 interest rates increased, leading to a lackluster total return for the portfolio and the
benchmark. Although performance is suffering in the short-term, the Chandler team views the increase in Treasury
interest rates as a long-term positive, allowing fixed income portfolios to generate a higher total return over a longer time
horizon in coming years.
Multiple securities were purchased in the Treasury, Supranational, Asset Backed, Mortgage Backed (CMO), and Corporate
sectors of the allocation to keep the portfolio invested consistent with Chandler objectives. The purchased securities
ranged in maturity from July 2024 to September 2026. Several Treasury securities were sold to facilitate the additional
holding in the portfolio. The sector allocation of the portfolio changed moderately over the quarter. The Corporate and
Asset Backed allocation each increased by 2.1% and 1.6%, respectively, partially offset by the 3.5% decline in the US
Treasury allocation. The Commercial Paper allocation dropped to zero. The duration of the portfolio was stable, currently
2.54 compared to 2.55 at the end of the prior quarter. The Chandler team is focused on the term structure of the portfolio,
relative to the benchmark, and will continue to keep the overall duration of the strategy close to the benchmark in the
coming quarter.
Liquid Portfolio
The Liquidity Portfolio generated a total return of 0.03% compared to the 0.02% return of the ICE Bank of America Merrill
Lynch 3-month US Treasury Bill Index. Several purchases were made in the Treasury, Negotiable Certificates of Deposit,
and Corporate sectors to keep the portfolio invested consistent with the strategy and to account for forecasted liquidity
needs of OC Sanitation District. The purchased securities ranged in maturity from September 2021 to June 2022. Two
securities were sold and multiple matured to facilitate the new holdings in the portfolio and to account for the net $78
million cash distributions during the quarter. The sector allocation changed moderately during the quarter. The lack of
attractive investment opportunities in the Agency sector has taken the allocation down to zero compared to 3.6% of the
portfolio as of June 30, 2021. The allocation to the Negotiable Certificate of Deposit, Corporate, and Commercial Paper
portions of the allocation all increased moderately during the quarter. The duration of the portfolio increased to 0.45
compared to 0.35 in the prior quarter. The Chandler team will continue to look for opportunities to lengthen the duration
of the portfolio consistent with the upcoming cash flows needs of OC Sanitation.
11 1 CHANDLER
j ~~~~GEMENT
5
Economic Outlook
The benign quarter-over-quarter changes in equity and fixed income market benchmarks masks the intra-quarter volatility
experienced by market participants. Economic distortions linked to the coronavirus are becoming more acute, leading to
more short-term price moves in market benchmarks inconsistent with the overall reopening economic thesis. A case in
point is the 10-year US Treasury note, which only moved higher by 2 basis points on a quarter-over-quarter basis but
reached a low yield of 1.17% on August 3rd only to move higher later in the quarter, topping out at 1.54% on September
28th and closing the quarter at 1.49%. On the equity side of the market, despite strong year-to-date performance, the
Russell 2000 and Nasdaq composite both experienced negative total returns in the quarter, while the S&P 500 managed
a small positive total return, incongruent with equity market correlations from earlier in the recovery.
The supply side constraints hindering the economic recovery are placing additional pressures on inflation metrics and
impeding the velocity of the recovery. PCE Core inflation, a key metric for Federal Reserve policymakers, has been at 3.6%
on a year-over-year basis for the past four months in a row through August, comfortably above the 2% objective. Inflation
metrics should start to move lower with the passage of time, but there are still several unknowns impeding the ability to
forecast how quickly and to what magnitude inflation will moderate. Although nonfarm payrolls currently have a robust
three-month moving average of 550k, the month over month readings have been volatile, and wage pressure is evident
with average hourly earnings on a year-over-year basis at 4.6%. The labor force participation rate is low at 61.6%; as
extended unemployment benefits expire and the risk from the coronavirus Delta variant dissipates, the supply of workers
should increase helping to restrain wage inflation. Policymakers are comfortable, for now, the elevated inflation readings
are being exacerbated by a narrow set of categories linked to the economic reopening. However, the longer the supply
side issues linger in the economy, the greater the risk long-term inflation expectations could become unanchored, calling
into question the Fed’s “transitory inflation” narrative.
The Chandler team holds the view both monetary and fiscal policy will remain stimulative in the coming quarters. The
core of the Federal Reserve remains dovish, despite the more hawkish rhetoric for several regional Fed Presidents.
Although the Federal Reserve has telegraphed the process of tapering the $120 billion of monthly asset purchases is set
to commence late this year, we believe an increase in the Fed Funds rate is unlikely in 2022; Fed Chair Powell has delinked
the taper process from rate hikes. Trends in employment and inflation will be important barometers to monitor in coming
quarters and the Fed is a long way from their full employment goals, a precursor to tightening policy. We believe the
Federal Reserve will be conservative in the pace of the taper, consistent with the new Flexible Average Inflation Targeting
(FAIT) regime. In our view the Fed Funds rate will stay lower for longer, allowing the economy to run ‘hot’, to enable the
ultimate adjustment in the Fed Funds rate to be higher, consistent with a 2% long-term inflation goal. The Federal Reserve
is arguably the most dovish of all the developed market central banks. Due to the challenges in emerging markets
correlated with lack of vaccine distribution, we think a dovish Federal Reserve – acting as the de-facto global central bank
- will assist the global economic recovery by allowing emerging market central banks to not have to tighten prematurely
because of currency risk. Regarding fiscal policy, we expect the bipartisan infrastructure bill to ultimately become law,
and the 2nd infrastructure bill to be watered down from the proposed $3.5 trillion number to pass both chambers of
Congress.
11 1 CHANDLER
j ~~~~GEMENT
6
Strategy
Strategy highlights for the Long-Term Portfolio in coming months:
• Continue to focus on the term structure of the portfolio relative to the benchmark. The Chandler team’s
investment outlook calls for a patient Federal Reserve, with the Fed Funds rate poised to stay at the zero lower
bound throughout 2022, as policymakers allow the economy to run “hot”. The Treasury yield curve should
continue to moderately steepen later this year.
o Continue to focus on Corporate notes with attractive relative value.
o Avoid new purchases in the Agency sector until relative value improves.
o Add Supranational exposure when the relative value is more attractive, predominately in the new issue
market.
• Chandler’s models for the strategy point towards a barbell portfolio structure, the team will be focused on
adding attractively priced securities at both the front and longer portions of the maturity distribution at the
margin.
Strategy highlights for the Liquidity Portfolio in coming months:
• Continue to position the portfolio to have maturing securities corresponding to the forecasted cash flow needs
of OC Sanitation.
• Opportunistically add longer duration Corporate, Negotiable CD, and Commercial Paper beyond the six-month
maturity point to enhance to total return opportunity of the strategy.
• Maintain a dedicated exposure to the Treasury sector on an ongoing basis to ensure ample transactional
liquidity in the event of an unexpected cash flow need.
7
Compliance Issues
Category Standard Comment
U.S. Treasuries 10% minimum; 5 years max maturity Complies*
Federal 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; Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by the US Government , a federal agency, or a US Government-sponsored enterprise Complies
Supranational Obligations "AA" rated or better by a NRSRO; 30% max; 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
Municipal Securities "A" rated or higher by a NRSRO; or as otherwise approved by the Board of Directors; Taxable or tax-exempt municipal bonds issued by any of the 50 states; 10% max; 5% max
issuer; 5 years max maturity Complies
Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% max; 5% max per 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. with AUM >$500 million Complies
Non- Agency Asset-Backed Securities, Mortgage-Backed Securities, CMOs
"AA" rating category or better by a NRSRO; 20% max(combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its agencies) ; 5 years max maturity; Mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond Complies*
Negotiable Certificates of Deposit (NCD)"A" rating or better long term debt by a NRSRO; or highest short term rating for deposits by a NRSRO; or as otherwise approved by the Board of Directors; 30% max; 5% max issuer; 5 years max maturity; Negotiable certificates of deposit issued by a nationally or state-chartered bank or state of federal savings and loan association, as defined by Section 5102 of the California Financial Code Complies
Certificates of Deposit 5% max issuer; 5 years max maturity; Secured (collateralized) time deposits issued by a nationally or state-chartered bank or state or federal savings and loan association, as defined by Section 5102 of the California Financial Code and having a net operating profit in the two most recently completed fiscal years; Collateral must comply with California Government Code Complies
Banker’s Acceptances A-1 rated or highest short term rating by a NRSRO; 40% max; 5% max issuer; 180 days max maturity; Acceptance is eligible for purchase by the Federal Reserve System Complies
Commercial Paper A-1 rated or better by a NRSRO; "A" long term debt rating or better by a NRSRO; Issued by a domestic corporation organized and operating in the U.S. with assets > $500 million;
25% max; 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; or SEC registered adviser with AUM >$500 million and experience > than 5 years; 20% max in Mutual Funds; 10% max per one Mutual Fund; 20% max per issuer on Money Market Mutual Funds and are not subject to the 10% stipulation Complies
Local Agency Investment Fund (LAIF)No more than the statutory maximum may be 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, and on a continual basis to a level of review pursuant to the policy Complies
Orange County Treasurer's Money
Market Commingled Investment Pool (OCCIP)
15% max; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool; Investment of OCSD funds in OCCIP would be subject to investigation and due diligence prior to investing and on continual basis to a level of review pursuant to the policy Complies
Repurchase Agreements 20% max; 102% collateralization Complies
Reverse Repurchase Agreements 5% max, 90 days max maturity 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
Securities Downgrade
If securities owned by the OCSD are downgraded below the quality required by the Investment Policy, it shall be OCSD’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence in the portfolio
will be monitored and reported quarterly to the OCSD General Manager, theAdministration Committee and Board of Directors
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 Funds); 20% max per issuer on Money Market Mutual Funds Complies
Maximum Maturity 5 years max 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 U.S. Treasuries 10% minimum; 1 year max maturity Complies
Federal 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; Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by the US Government , a federal agency, or a US Government-sponsored enterprise Complies
Supranational Obligations
"AA" rated or better by a NRSRO; 30% max; 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
Municipal Securities "A" rated or higher by a NRSRO; or as otherwise approved by the Board of Directors; Taxable or tax-exempt municipal bonds issued by any of the 50 states; 10% max;
5% max issuer; 1 year max maturity Complies
Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% max; 5% max per 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. with AUM >$500 million Complies
Non- Agency Asset-Backed Securities, Mortgage-Backed Securities, CMOs
"AA" rating category or better by a NRSRO; 20% max (combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its agencies) ; 1 year max maturity; Mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond Complies
Negotiable Certificates of Deposit (NCD)"A" rating or better long term debt by a NRSRO; or highest short term rating for deposits by a NRSRO; or as otherwise approved by the Board of Directors; 30% max; 5% max issuer; 1 year max maturity; Negotiable certificates of deposit issued by a nationally or state-chartered bank or state of federal savings and loan association, as defined by Section 5102 of the California Financial Code Complies
Certificates of Deposit 5% max issuer; 1 year max maturity; Secured (collateralized) time deposits issued by a nationally or state-chartered bank or state or federal savings and loan association, as defined by Section 5102 of the California Financial Code and having a net operating profit in the two most recently completed fiscal years; Collateral must comply with California Government Code Complies
Banker’s Acceptances A-1 rated or highest short term rating by a NRSRO; 40% max; 5% max issuer; 180 days max maturity; Acceptance is eligible for purchase by the Federal Reserve System Complies
Commercial Paper A-1 rated or better by a NRSRO; "A" long term debt rating or better by a NRSRO; Issued by a domestic corporation organized and operating in the U.S. with assets > $500 million; 25% max; 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; or SEC registered adviser with AUM >$500 million and experience > than 5 years; 20% max in Mutual Funds; 10% max per one Mutual Fund; 20% max per issuer on Money Market Mutual Funds and are not subject to the 10% stipulation Complies
Local Agency Investment Fund (LAIF)No more than the statutory maximum may be 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, and on a continual basis to a level of review pursuant to the policy Complies
Orange County Treasurer's Money Market Commingled Investment Pool
(OCCIP)
15% max; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool; Investment of OCSD funds in OCCIP would be subject to investigation and due diligence prior to investing and on continual basis to a level of review pursuant to the policy Complies
Repurchase Agreements 20% max; 102% collateralization CompliesReverse Repurchase Agreements 5% max, 90 days max maturity 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
Securities Downgrade
If securities owned by the OCSD are downgraded below the quality required by the Investment Policy, it shall be OCSD’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence
in the portfolio will be monitored and reported quarterly to the OCSD General Manager, theAdministration Committee and Board of Directors
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 CompliesMax Per Issuer 5% max per issuer (except Supranationals, U.S. Government, Agencies, Mutual Funds); 20% max per issuer on Money Market Mutual Funds Complies
Maximum Maturity 1 year max maturity Complies
Orange County Sanitation District LiquidAssets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
11 1 CHANDLER
j ~~~~GEMENT
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
OCSD Lehman Exposure
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
* Account holds $2 million face value (cusip 525ESC0Y6) and $600,000 face value (cusip 525ESC1B7) of defaulted Lehman Bros Holdings that were purchased by the previous manager. Complied at time of purchase.
OCSD Lehman Exposure -Account #10284
CHANDLER
ASSET
MANAGEMENT
CUSIP Securot Descro tion Par Value/Units Purchase Date Cost Value Mkt Proce Market Value % of Port. Moody/S&P Matu~1ty
Y P Book Yield Book Value Mkt YTM Accrued Int. Gam/Loss Fitch Duration
Common Stock
SLHOPNTA4 Lehman Brothers, Inc Open Position Long Exposure 60,641.49 11/21/2014 57,842.64 0.42 25,621.03 59.17% NR/ NR 0.00
0.000% Due 09/30/2021 0.00% 57,842.64 0.00% 0.00 !32,221.611 NR 0.00
57,842.64 25,621.03 59.17% NR/NR 0.00
TOTAL Common Stock 60,641.49 0.00% 57,842.64 0.00% 0.00 (32,221.61) NR 0.00
Corporate
525ESCl87 Lehman Brothers Note-Defaulted 600,000.00 09/19/2008 316,428.27 0.68 4,080.00 9.42% NR/ NR 0.32
0.000% Due 01/24/2022 0.00% 316,428.27 0.00% 0.00 (312,348.27) NR 0.00
525ESCOY6 Lehman Brothers Note-Defaulted 2,000,000.00 09/18/2008 1,019,380.10 0.68 13,600.00 31.41% NR/ NR 28.08
0.000% Due 10/22/2049 0.00% 1,019,380.10 0.00% 0.00 (1,005,780.10) NR 0.00
1,335,80837 17,680.00 40.83% NR/NR 21.67
TOTAL Corporate 2,600,000.00 0.00% 1,335,80837 0.00% o.oo (1,318,128.37) NR o.oo
1,393,651.01 43,301.03 100.00% NR/NR 8.85
TOTAL PORTFOLIO 2,660,641.49 0.00% 1,393,651.01 0.00% 0.00 (1,350,349.98) NR 0.00
TOTAL MARKET VALUE PLUS ACCRUALS 43,301.03
9
Ratings
CHANDLER
ASSET
MANAGEMENT
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
09/30/21
Ub/3U/Ll
Source: S&P Ratings
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
09/J0/21
0n/.10/71
Source: 5&P Ratings
AAA
AAA
Orange County Sanitation District Long Term
September 30, 2021 vs. June 30, 2021
AA A <A
■ 9/?IJ/2021 ■ 6/30/2021
NR
AAA AA A <A NR
12.1%
65.2%
bY.b%
15.2%
B.b%
orange county sanitation District Liquid
September 30, 2021 vs. June 30, 2021
AA A <A
■ 9/?IJ/2021 ■ 6/30/2021
1.3%
1.1%
NR
3.9%
LY%
AAA AA A <A NR
17.0%
nth%
76.7%
fi8.S%
4.7% 1.6% 0.0%
1.0%
10
HISTORICAL YIELD CURVE
CHANDLER
ASSET
MANAGEMENT
$800,000,000
OC SAN Investment Program
Quarter End Portfolio Value
H ■ Liquid Operating Monies I $700,000,000
$600,000,000
$500,000,000
$400,000,000
$300,000,000
$200,000,000
$100,000,000
$-
4.00%
3.00%
2.00%
1.00%
0.00%
,y 6
'?o '?o
■ Long-Term Operat ing Monies
~SEPTEMBER 2021
--AUGUST 2021
tJ. SEPTEMBER 2020
tJ.
~J.-.,. ,YJ.-.,. s..1--.,.
tJ.
> J.-,-.
I
--tJ.
<o h--
tJ.
>Yo
h--
ACCOUNT SUMMARY
Beg. Values
as of 8/31/21
End Values
as of 9/30/21
Market Value 164,580,566 129,577,399
Accrued Interest 258,351 281,010
Total Market Value 164,838,917 129,858,408
Income Earned 9,372 9,989
Cont/WD -35,000,000
Par 163,952,557 129,041,613
Book Value 164,587,073 129,574,511
Cost Value 164,895,148 129,986,420
TOP ISSUERS
Government of United States 79.0%
Toyota Motor Corp 3.1%
Bank of Nova Scotia Houston 2.3%
Svenska Handelsbanken NY 2.3%
Nordea Bank ABP New York 2.3%
Truist Financial Corporation 1.6%
Morgan Stanley 1.6%
Honda Motor Corporation 1.6%
Total 93.8%
PORTFOLIO CHARACTERISTICS
Average Modified Duration 0.45
Average Coupon 1.07%
Average Purchase YTM 0.08%
Average Market YTM 0.09%
Average S&P/Moody Rating AA+/Aaa
Average Final Maturity 0.45 yrs
Average Life 0.39 yrs
CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION
Portfolio Summary
As of September 30, 2021
Orange County Sanitation District Liquid
Account #10282
PERFORMANCE REVIEW
Annualized
TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS 11/30/2014
Orange County Sanitation District Liquid 0.01% 0.03% 0.08% 0.11% 0.72% 1.31% 1.26% N/A 1.00%
ICE BofA 3-Month US Treasury Bill Index 0.01% 0.02% 0.04% 0.07% 0.58% 1.18% 1.16% N/A 0.89%
Execution Time: 10/3/2021 7:16:44 PMChandler Asset Management - CONFIDENTIAL Page 1
US Trea1ury
NogCD 8.5%
Co,porato 16.3%
Comm Paper 1 6.2%
Monov Mkt Fd 0.0%
80%
79.0%
60%
40%
20%
1.6%
%
O· .25
60.0%
.25 • .5 .5 • l l • 1.5 1.5 • 2
Maturity (Yrs)
2 • 2.5 2.5 • 3 3+
AA (76.7%)
BBB (1.6%)
A(4.7%)
ACCOUNT SUMMARY
Beg. Values
as of 8/31/21
End Values
as of 9/30/21
Market Value 850,231,731 813,758,925
Accrued Interest 2,786,384 2,525,724
Total Market Value 853,018,115 816,284,650
Income Earned 850,096 835,854
Cont/WD
Par 836,684,827 803,335,203
Book Value 837,624,403 804,093,509
Cost Value 837,836,848 804,547,296
TOP ISSUERS
Government of United States 39.3%
Federal National Mortgage Assoc 9.0%
Federal Home Loan Bank 5.7%
Federal Home Loan Mortgage Corp 5.1%
Inter-American Dev Bank 4.7%
Intl Bank Recon and Development 3.8%
Federal Farm Credit Bank 1.7%
Bank of Nova Scotia Houston 1.6%
Total 71.0%
PORTFOLIO CHARACTERISTICS
Average Modified Duration 2.20
Average Coupon 1.44%
Average Purchase YTM 1.23%
Average Market YTM 0.43%
Average S&P/Moody Rating AA+/Aa1
Average Final Maturity 2.41 yrs
Average Life 2.24 yrs
CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION
Portfolio Summary
As of September 30, 2021
Orange County Sanitation District Consolidated
Account #10283
PERFORMANCE REVIEW
Annualized
TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS
Execution Time: 10/3/2021 7:17:00 PMChandler Asset Management - CONFIDENTIAL Page 1
US Treasury 39.3% 25% 23.6%
Corporate
20% AA (67.0%)
Agency
Supr-a•-8.6%
ABS-5.1%
15%
Neg CD 3 .4% 10% B(0.0%)
Comm Paper I 1.0% BBB (1.4%)
CMOI 0.8%
NR (3.3%} 5%
Monoy Mkt Fd I 0.2% 0.2%
0.1% % MBS O· .25 .25 • .5 .5 • 1 1·2 2 • 3 3 .4 4 · 5 5+
Common Stock 0.0% Maturity (Yrs) AAA(14.8%}
Par Value Book Value Market Value Rate Yield
Balance
September 1, 2021 $50,334,264 $50,334,264 $50,334,264 0.21 0.21
Deposits:
9/30/2021 30,800,000 30,800,000 30,800,000 0.21 0.21
Total Deposits 30,800,000 30,800,000 30,800,000 0.21 0.21
Quarterly
Interest
Distribution --- 0.21 0.21
Withdrawals:
9/7/2021 (1,100,000) (1,100,000) (1,100,000) 0.21 0.21
9/9/2021 (1,900,000) (1,900,000) (1,900,000) 0.21 0.21
9/15/2021 (3,300,000) (3,300,000) (3,300,000) 0.21 0.21
9/21/2021 (2,800,000) (2,800,000) (2,800,000) 0.21 0.21
9/22/2021 (5,500,000) (5,500,000) (5,500,000) 0.21 0.21
Total Withdrawals (14,600,000) (14,600,000) (14,600,000) 0.21 0.21
Balance
September 30, 2021 $66,534,264 $66,534,264 $66,534,264 0.21 0.21
Orange County Sanitation District
Investment Transactions and Balances in the
State of California Local Agency Investment Fund
September 30, 2021
U.S. Bank
Asset Summary - Liquid
As of 09/30/2021
Industry Name Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
Cash Equivalents
COMMERCIAL PAPER 8,000,000.0000 7,991,753.34 7,997,340.00 6.17 5,586.66
FIRST AMERICAN SHORT TERM FDS 41,613.2300 41,613.23 41,613.23 0.03 -
U. S. GOVERNMENT 12,000,000.0000 11,997,256.50 11,997,600.00 9.26 343.50
Cash Equivalents Total 20,041,613.2300 20,030,623.07 20,036,553.23 15.46 5,930.16
Fixed Income
CONSUMER DISCRETIONARY 2,000,000.0000 2,032,780.00 2,022,100.00 1.56 (10,680.00)
FINANCE 4,000,000.0000 4,096,680.00 4,068,200.00 3.14 (28,480.00)
FIXED INCOME FUNDS OTHER 3,000,000.0000 3,000,300.89 3,001,020.00 2.32 719.11
INDUSTRIAL 2,000,000.0000 2,043,700.00 2,021,620.00 1.56 (22,080.00)
SHORT TERM FUNDS 8,000,000.0000 8,001,280.87 8,003,570.00 6.18 2,289.13
U. S. GOVERNMENT 90,000,000.0000 90,781,054.70 90,424,925.00 69.78 (356,129.70)
Fixed Income Total 109,000,000.0000 109,955,796.46 109,541,435.00 84.54 (414,361.46)
Grand Total 129,041,613.2300 129,986,419.53 129,577,988.23 100.00 (408,431.30)
1 of 1
U.S. Bank
Asset Summary - Long-Term
As of 09/30/2021
Industry Name Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
Cash Equivalents
FIRST AMERICAN SHORT TERM FDS 1,846,484.8100 1,846,484.81 1,846,484.81 0.27 -
Cash Equivalents Total 1,846,484.8100 1,846,484.81 1,846,484.81 0.27 -
Fixed Income
CONSUMER DISCRETIONARY 14,554,000.0000 14,656,686.38 14,847,586.78 2.17 190,900.40
CONSUMER STAPLES 6,955,000.0000 6,950,042.65 7,156,311.40 1.05 206,268.75
ENERGY 3,500,000.0000 3,441,095.00 3,648,330.00 0.53 207,235.00
FINANCE 99,169,000.0000 98,625,682.49 98,853,684.93 14.45 228,002.44
FIXED INCOME FUNDS OTHER 7,000,000.0000 7,000,702.07 7,002,380.00 1.02 1,677.93
FOREIGN FIXED INCOME 14,500,000.0000 14,676,215.00 15,258,425.00 2.23 582,210.00
HEALTH CARE 3,755,000.0000 3,709,323.15 3,834,983.60 0.56 125,660.45
INDUSTRIAL 1,250,000.0000 1,250,237.50 1,332,862.50 0.19 82,625.00
INFORMATION TECHNOLOGY 11,922,000.0000 12,198,156.16 12,575,898.46 1.84 377,742.30
MTG RELATED SECURITY 47,547,249.3000 47,981,885.99 48,055,870.48 7.02 73,984.49
PRIVATE PLACEMENTS 3,745,000.0000 3,741,554.60 3,726,125.20 0.54 (15,429.40)
SHORT TERM FUNDS 10,000,000.0000 9,999,999.61 10,002,750.00 1.46 2,750.39
SUPRANATIONAL 69,940,000.0000 69,585,857.85 69,777,882.80 10.20 192,024.95
U. S. GOVERNMENT 202,003,790.4200 200,950,014.47 205,029,596.08 29.96 4,079,581.61
U.S. GOVERNMENT TIPS 11,955,424.0000 11,810,704.09 12,763,371.55 1.87 952,667.46
US AGY - LONG TERM ISSUES 164,590,000.0000 166,108,853.75 168,563,302.05 24.63 2,454,448.30
Fixed Income Total 672,386,463.7200 672,687,010.76 682,429,360.83 99.73 9,742,350.07
Grand Total 674,232,948.5300 674,533,495.57 684,275,845.64 100.00 9,742,350.07
1 of 1
,___.._ __
t t
The Bank of New York Mellon may utilize subsidiaries and affiliates to provide services and certain products to the Account. Subsidiaries and affiliates may be compensated for their services and products.
The value of securities set forth on this Account Statement are determined by The Bank of New York Mellon for Corporate Trust on the basis of market prices and information obtained by The Bank of New York Mellon from
unaffiliated third parties (including independent pricing vendors) ("third party pricing services"). The Bank of New York Mellon has not verified such market values or information and makes no assurances as to the accuracy or
correctness of such market values or information or that the market values set forth on this Account Statement reflect the value of the securities that can be realized upon the sale of such securities. In addition, the market values
for securities set forth in this Account Statement may differ from the market prices and information for the same securities used by other business units of The Bank of New York Mellon or its subsidiaries or affiliates based upon
market prices and information received from other third party pricing services utilized by such other business units. Corporate Trust does not compare its market values with those used by, or reconcile different market values
used by, other business units of The Bank of New York Mellon or its subsidiaries or its affiliates. The Bank of New York Mellon shall not be liable for any loss, damage or expense incurred as a result of or arising from or
related to the market values or information provided by third party pricing services or the differences in market prices or information provided by other third party pricing services.
No Transactions This Period
Accrued Estimated Market
Shares/Par Value Asset Description Market Price Market Value Cost Average Cost Income Income Yield
Realized
Transaction Date Transaction Description Income Principal Cost Gains/Losses
Statement Period 09/01/2021 Through 09/30/2021
Statement of Assets Held by Asset Classification
Statement of Transactions by Transaction Date
Account 300282 Base Currency = USD
OCSD LIBERTY MUTUAL
500,000.000 UNITED STATES TREASURY BILL 99.97800 499,890.00 499,762.39 99.95248 0.00 0.00 0.00%
CUSIP: 912796F38
MATURITY DATE: 03/24/2022
RATE: 0.000%
CASH BALANCE 941.20 941.20 0.00000 0.00 0.00 0.00%
Total Market Value Plus Total Accrued Income 500,831.20
Cumulative realized capital gain and loss position from 12/31/2020 for securities held in principal of account:
Short Term: 630.68 * 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 500,831.20 500,703.59 0.00 0.00 0.00%
ACCOUNT TOTALS 500,831.20 500,703.59 0.00 0.00 0.00%
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BNY MELLON
U.S. Bank
Investment Listing - Yield
As of 09/30/2021
Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value
Cash Equivalents 21687AYV9 COOPERATIEVE CENTRALE C P 11/29/21 0.0000% 2,000,000.0000 99.98 1,997,978.89 1,999,680.00
Cash Equivalents 31846V567 FIRST AM GOVT OB FD CL Z 0.0200% 41,613.2300 1.00 41,613.23 41,613.23
Cash Equivalents 31846V567 FIRST AM GOVT OB FD CL Z 0.0200% 1,846,484.8100 1.00 1,846,484.81 1,846,484.81
Cash Equivalents 62479MAM5 MUFG BK LTD N Y BRH C P 1/21/22 0.0000% 2,000,000.0000 99.96 1,997,907.78 1,999,260.00
Cash Equivalents 89233HAU8 TOYOTA MTR CR CORP DISC C P 1/28/22 0.0000% 4,000,000.0000 99.96 3,995,866.67 3,998,400.00
Cash Equivalents 912796D30 U S TREASURY BILL 2/24/22 0.0450% 12,000,000.0000 N/A N/A 99.98 11,997,256.50 11,997,600.00
Fixed Income 00440EAS6 ACE INA HOLDING 3.150% 3/15/25 2.9329% 2,000,000.0000 A3 A 107.40 2,203,740.00 2,148,020.00
Fixed Income 00440EAU1 ACE INA HOLDINGS 2.875% 11/03/22 2.8103% 4,169,000.0000 A3 A 102.30 4,232,453.17 4,264,970.38
Fixed Income 023135BW5 AMAZON COM INC 0.450% 5/12/24 0.4509% 5,490,000.0000 A1 AA 99.80 5,481,984.60 5,478,910.20
Fixed Income 02665WDF5 AMERICAN HONDA MTN 1.950% 5/20/22 1.9287% 2,000,000.0000 A3 A- 101.11 2,032,780.00 2,022,100.00
Fixed Income 02665WCZ2 AMERICAN HONDA MTN 2.400% 6/27/24 2.2994% 1,219,000.0000 A3 A- 104.38 1,213,843.63 1,272,355.63
Fixed Income 02665WCJ8 AMERICAN HONDA MTN 3.450% 7/14/23 3.2779% 845,000.0000 A3 A- 105.25 843,538.15 889,370.95
Fixed Income 02665WCQ2 AMERICAN HONDA MTN 3.625% 10/10/23 3.4116% 2,000,000.0000 A3 A- 106.26 1,998,320.00 2,125,100.00
Fixed Income 03215PFN4 AMRESCO 0.95764% 6/25/29 0.9705% 119,021.6400 N/A BBB 98.67 89,377.81 117,439.84
Fixed Income 037833AZ3 APPLE INC 2.500% 2/09/25 2.3777% 3,922,000.0000 AA1 AA+ 105.14 4,154,496.16 4,123,708.46
Fixed Income 037833CU2 APPLE INC 2.850% 5/11/24 2.7008% 3,000,000.0000 AA1 AA+ 105.52 3,017,760.00 3,165,690.00
Fixed Income 06051GJD2 BANK AMER CORP MTN 1.319% 6/19/26 1.3193% 2,250,000.0000 A2 A- 99.98 2,254,432.50 2,249,460.00
Fixed Income 06417MQL2 BANK NOVA C D 0.200% 6/23/22 0.2000% 5,000,000.0000 100.02 4,999,999.61 5,001,200.00
Fixed Income 06417MNK7 BANK NOVA C D 0.220% 4/08/22 0.2199% 3,000,000.0000 100.05 3,000,000.00 3,001,350.00
Fixed Income 06051GHF9 BANK OF AMERICA 3.550% 3/05/24 3.4055% 6,675,000.0000 A2 A- 104.24 6,770,625.75 6,958,287.00
Fixed Income 06051GHY8 BANK OF AMERICAN MTN 2.015% 2/13/26 1.9640% 2,500,000.0000 A2 A- 102.60 2,583,450.00 2,564,925.00
Fixed Income 06368FAC3 BANK OF MONTREAL MTN 1.250% 9/15/26 1.2594% 3,000,000.0000 A2 A- 99.25 2,994,647.40 2,977,530.00
Fixed Income 06367WB85 BANK OF MONTREAL MTN 1.850% 5/01/25 1.7979% 7,000,000.0000 A2 A- 102.90 7,226,940.00 7,203,000.00
Fixed Income 06417MMB8 BANK OF NOVA C D 0.280% 11/24/21 0.2799% 5,000,000.0000 100.03 5,000,000.00 5,001,550.00
Fixed Income 06406RAA5 BANK OF NY MTN 2.600% 2/07/22 2.5836% 2,500,000.0000 A1 A 100.64 2,504,475.00 2,515,875.00
Fixed Income 06406RAE7 BANK OF NY MTN 2.950% 1/29/23 2.8559% 2,500,000.0000 A1 A 103.30 2,489,555.00 2,582,400.00
Fixed Income 05531FBG7 BB T CORPORATION MTN 3.050% 6/20/22 2.9962% 2,000,000.0000 A3 A- 101.80 2,049,420.00 2,035,920.00
Fixed Income 084670BR8 BERKSHIRE HATHAWAY 2.750% 3/15/23 2.6669% 2,500,000.0000 AA2 AA 103.12 2,440,950.00 2,577,925.00
Fixed Income 084664BT7 BERKSHIRE HATHAWAY 3.000% 5/15/22 2.9494% 4,000,000.0000 AA2 AA 101.72 4,131,120.00 4,068,600.00
Fixed Income 09247XAL5 BLACKROCK INC 3.500% 3/18/24 3.2654% 1,000,000.0000 AA3 AA- 107.19 1,036,330.00 1,071,850.00
Fixed Income 09690AAC7 BMW VEHICLE LEASE 0.330% 12/26/24 0.3303% 2,070,000.0000 AAA N/A 99.91 2,069,786.38 2,068,074.90
Fixed Income 14913Q2T5 CATERPILLAR FINL MTN 2.950% 2/26/22 2.9185% 2,000,000.0000 A2 A 101.08 2,043,700.00 2,021,620.00
Fixed Income 808513AT2 CHARLES SCHWAB CORP 2.650% 1/25/23 2.5751% 6,750,000.0000 A2 A 102.91 6,729,480.00 6,946,357.50
Fixed Income 166764AH3 CHEVRON CORP 3.191% 6/24/23 3.0613% 3,500,000.0000 AA2 AA- 104.24 3,441,095.00 3,648,330.00
Fixed Income 00440EAP2 CHUBB INA HLDGS INC 2.700% 3/13/23 2.6116% 2,000,000.0000 A3 A 103.39 1,937,000.00 2,067,700.00
Fixed Income 3133ELYR9 F F C B DEB 0.250% 5/06/22 0.2497% 8,850,000.0000 AAA AA+ 100.11 8,838,760.50 8,859,646.50
Fixed Income 3133EKWV4 F F C B DEB 1.850% 7/26/24 1.7838% 5,000,000.0000 AAA AA+ 103.71 5,048,280.00 5,185,600.00
Fixed Income 3130A1XJ2 F H L B 2.875% 6/14/24 2.7004% 11,110,000.0000 AAA AA+ 106.47 11,589,031.30 11,828,261.50
Fixed Income 3130A4CH3 F H L B DEB 2.375% 3/14/25 2.2427% 5,225,000.0000 AAA AA+ 105.90 5,526,848.25 5,533,118.25
Fixed Income 3130A2UW4 F H L B DEB 2.875% 9/13/24 2.6896% 2,500,000.0000 AAA AA+ 106.89 2,635,950.00 2,672,300.00
1 of 5
U.S. Bank
Investment Listing - Yield
As of 09/30/2021
Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 313383QR5 F H L B DEB 3.250% 6/09/23 3.0929% 5,000,000.0000 AAA AA+ 105.08 5,083,350.00 5,254,050.00
Fixed Income 313383YJ4 F H L B DEB 3.375% 9/08/23 3.1832% 10,000,000.0000 AAA AA+ 106.03 10,211,831.00 10,602,500.00
Fixed Income 3130A0F70 F H L B DEB 3.375% 12/08/23 3.1643% 10,000,000.0000 AAA AA+ 106.66 10,269,043.75 10,665,800.00
Fixed Income 3137BFE98 F H L B GTD REMIC 3.171% 10/25/24 2.9653% 5,000,000.0000 N/A N/A 106.94 5,378,515.62 5,346,900.00
Fixed Income 3137EAEP0 F H L M C 1.500% 2/12/25 1.4580% 12,335,000.0000 AAA AA+ 102.88 12,510,182.05 12,690,371.35
Fixed Income 3137EAEN5 F H L M C 2.750% 6/19/23 2.6368% 10,000,000.0000 AAA AA+ 104.29 9,956,500.00 10,429,400.00
Fixed Income 3137EAEU9 F H L M C M T N 0.375% 7/21/25 0.3800% 5,030,000.0000 AAA AA+ 98.69 5,004,950.60 4,963,905.80
Fixed Income 3137EAEX3 F H L M C M T N 0.375% 9/23/25 0.3812% 7,660,000.0000 AAA AA+ 98.37 7,636,943.40 7,535,371.80
Fixed Income 31348SWZ3 F H L M C #786064 2.262% 1/01/28 2.2484% 1,389.2400 N/A N/A 100.61 1,355.41 1,397.66
Fixed Income 31394JY35 F H L M C MLTCL MT 9.50001% 9/25/43 8.2660% 500,242.4900 N/A N/A 114.93 566,524.61 574,923.69
Fixed Income 3133TCE95 F H L M C MLTCL MTG 3.807% 8/15/32 3.7850% 3,755.7500 N/A N/A 100.58 3,759.69 3,777.54
Fixed Income 3135G05G4 F N M A 0.250% 7/10/23 0.2501% 6,775,000.0000 AAA AA+ 99.98 6,760,433.75 6,773,441.75
Fixed Income 3135G05X7 F N M A 0.375% 8/25/25 0.3808% 7,945,000.0000 AAA AA+ 98.47 7,907,817.40 7,823,282.60
Fixed Income 3135G04Z3 F N M A 0.500% 6/17/25 0.5030% 9,905,000.0000 AAA AA+ 99.40 9,884,496.65 9,845,074.75
Fixed Income 3135G06G3 F N M A 0.500% 11/07/25 0.5066% 8,255,000.0000 AAA AA+ 98.71 8,225,447.10 8,148,097.75
Fixed Income 3135G0X24 F N M A 1.625% 1/07/25 1.5713% 10,000,000.0000 AAA AA+ 103.42 10,157,936.40 10,342,000.00
Fixed Income 3135G0T45 F N M A 1.875% 4/05/22 1.8579% 5,000,000.0000 AAA AA+ 100.92 4,972,500.00 5,045,950.00
Fixed Income 3135G0V34 F N M A 2.500% 2/05/24 2.3803% 5,000,000.0000 AAA AA+ 105.03 4,980,850.00 5,251,400.00
Fixed Income 31371NUC7 F N M A #257179 4.500% 4/01/28 4.1638% 7,403.0600 N/A N/A 108.08 7,829.47 8,000.86
Fixed Income 31376KT22 F N M A #357969 5.000% 9/01/35 4.3973% 60,287.1000 N/A N/A 113.71 64,808.62 68,550.05
Fixed Income 31403DJZ3 F N M A #745580 5.000% 6/01/36 4.3870% 57,500.9500 N/A N/A 113.97 61,813.51 65,535.56
Fixed Income 31403GXF4 F N M A #748678 5.000% 10/01/33 4.5188% 799.9900 N/A N/A 110.65 859.98 885.19
Fixed Income 31406PQY8 F N M A #815971 5.000% 3/01/35 4.3855% 85,735.1700 N/A N/A 114.01 92,165.32 97,748.38
Fixed Income 31406XWT5 F N M A #823358 2.035% 2/01/35 1.9329% 68,468.6800 N/A N/A 105.28 67,933.76 72,085.88
Fixed Income 31407BXH7 F N M A #826080 5.000% 7/01/35 4.3851% 11,785.6900 N/A N/A 114.02 12,669.59 13,438.40
Fixed Income 31410F4V4 F N M A #888336 5.000% 7/01/36 4.4098% 99,528.8500 N/A N/A 113.38 106,993.52 112,849.79
Fixed Income 3138EG6F6 F N M A #AL0869 4.500% 6/01/29 4.1631% 5,354.5900 N/A N/A 108.09 5,663.02 5,787.94
Fixed Income 31417YAY3 F N M A #MA0022 4.500% 4/01/29 4.1618% 9,073.4500 N/A N/A 108.13 9,596.06 9,810.67
Fixed Income 3135G03U5 F N M A DEB 0.625% 4/22/25 0.6262% 14,000,000.0000 AAA AA+ 99.80 13,996,711.60 13,972,280.00
Fixed Income 3135G0T94 F N M A DEB 2.375% 1/19/23 2.3097% 5,000,000.0000 AAA AA+ 102.83 4,910,990.00 5,141,450.00
Fixed Income 31397QRE0 F N M A GTD REMIC 2.472% 2/25/41 0.7543% 101,078.1500 N/A N/A 101.55 101,046.58 102,647.89
Fixed Income 36225CAZ9 G N M A I I #080023 2.125% 12/20/26 2.0536% 9,538.2000 N/A N/A 103.48 9,695.77 9,869.94
Fixed Income 36225CC20 G N M A I I #080088 2.000% 6/20/27 1.9636% 6,739.0100 N/A N/A 101.86 6,886.43 6,864.09
Fixed Income 36225CNM4 G N M A I I #080395 1.875% 4/20/30 1.8102% 3,790.4200 N/A N/A 103.58 3,756.05 3,926.08
Fixed Income 36225CN28 G N M A I I #080408 1.875% 5/20/30 1.8099% 31,069.2100 N/A N/A 103.60 30,753.66 32,187.39
Fixed Income 36225DCB8 G N M A I I #080965 2.250% 7/20/34 2.1638% 26,123.7300 N/A N/A 103.99 26,107.41 27,165.02
Fixed Income 43813GAC5 HONDA AUTO 0.270% 4/21/25 0.2701% 1,605,000.0000 AAA N/A 99.95 1,604,970.63 1,604,165.40
Fixed Income 43813KAC6 HONDA AUTO 0.370% 10/18/24 0.3696% 3,235,000.0000 N/A AAA 100.11 3,234,524.78 3,238,526.15
Fixed Income 43815HAC1 HONDA AUTO 2.94999% 8/22/22 2.9434% 198,609.4400 AAA N/A 100.23 198,582.19 199,056.31
Fixed Income 438516CB0 HONEYWELL 1.350% 6/01/25 1.3283% 5,000,000.0000 A2 A 101.64 5,119,000.00 5,081,850.00
2 of 5
U.S. Bank
Investment Listing - Yield
As of 09/30/2021
Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 44934KAC8 HTUNDAI AUTO REC TR 0.380% 1/15/26 0.3807% 6,040,000.0000 N/A AAA 99.81 6,038,666.97 6,028,403.20
Fixed Income 44891VAC5 HYUNDAI AUTO LEASE 0.330% 6/17/24 0.3303% 4,155,000.0000 AAA AAA 99.90 4,154,376.75 4,150,678.80
Fixed Income 44933LAC7 HYUNDAI AUTO REC 0.380% 9/15/25 0.3802% 2,100,000.0000 N/A AAA 99.96 2,099,779.08 2,099,160.00
Fixed Income 458140BD1 INTEL CORP 2.875% 5/11/24 2.7192% 5,000,000.0000 A1 A+ 105.73 5,025,900.00 5,286,500.00
Fixed Income 4581X0DZ8 INTER AMER BK M T N 0.500% 9/23/24 0.5014% 10,775,000.0000 AAA AAA 99.72 10,767,026.50 10,744,830.00
Fixed Income 4581X0DN5 INTER AMER BK M T N 0.625% 7/15/25 0.6287% 5,050,000.0000 AAA AAA 99.42 5,071,967.50 5,020,609.00
Fixed Income 4581X0DV7 INTER AMER BK M T N 0.875% 4/20/26 0.8784% 13,370,000.0000 AAA AAA 99.61 13,308,765.40 13,317,857.00
Fixed Income 4581X0CZ9 INTER AMER DEV BK 1.750% 9/14/22 1.7245% 6,500,000.0000 AAA AAA 101.48 6,249,655.00 6,596,200.00
Fixed Income 4581X0CW6 INTER AMER DEV BK 2.125% 1/18/22 2.1129% 3,000,000.0000 AAA N/A 100.57 2,996,310.00 3,017,220.00
Fixed Income 459058FY4 INTL BK 2.000% 1/26/22 1.9886% 10,000,000.0000 AAA N/A 100.57 10,006,350.00 10,057,400.00
Fixed Income 459058JL8 INTL BK M T N 0.500% 10/28/25 0.5068% 15,000,000.0000 AAA AAA 98.67 14,964,951.60 14,799,750.00
Fixed Income 459058JB0 INTL BK M T N 0.626% 4/22/25 0.6281% 6,245,000.0000 AAA AAA 99.66 6,220,831.85 6,224,016.80
Fixed Income 24422EUM9 JOHN DEERE MTN 3.650% 10/12/23 3.4231% 1,250,000.0000 A2 A 106.63 1,250,237.50 1,332,862.50
Fixed Income 47789QAC4 JOHN DEERE OWN 0.520% 3/16/26 0.5203% 2,820,000.0000 AAA N/A 99.94 2,819,748.46 2,818,336.20
Fixed Income 47788UAC6 JOHN DEERE OWNER 0.360% 9/15/25 0.3603% 2,300,000.0000 AAA N/A 99.92 2,299,557.94 2,298,091.00
Fixed Income 47787NAC3 JOHN DEERE OWNER 0.510% 11/15/24 0.5088% 1,480,000.0000 AAA N/A 100.23 1,479,774.45 1,483,404.00
Fixed Income 47788EAC2 JOHN DEERE OWNER 3.080% 11/15/22 3.0741% 181,085.4100 AAA N/A 100.19 181,071.68 181,431.28
Fixed Income 46625HRL6 JP MORGAN CHASE CO 2.700% 5/18/23 2.6103% 5,000,000.0000 A2 A- 103.44 4,821,910.00 5,171,750.00
Fixed Income 46647PBH8 JPMORGAN CHASE CO 2.005% 3/13/26 1.9575% 3,500,000.0000 A2 A- 102.43 3,602,345.00 3,585,015.00
Fixed Income 46647PAU0 JPMORGAN CHASE CO 3.797% 7/23/24 3.5917% 2,500,000.0000 A2 A- 105.72 2,632,175.00 2,642,875.00
Fixed Income 525ESC0Y6 LEHMAN BRTH HLD ESC 0.0000% 2,000,000.0000 - 1,019,380.10 -
Fixed Income 525ESCIB7 LEHMAN BRTH MTN ES 0.00001% 1/24/13 0.0015% 600,000.0000 N/A N/A 0.68 316,428.27 4,080.00
Fixed Income 58769KAD6 MERCEDES BENZ AUTO 0.400% 11/15/24 0.4001% 3,315,000.0000 N/A AAA 99.98 3,314,749.72 3,314,237.55
Fixed Income 58770FAC6 MERCEDES BENZ AUTO 1.840% 12/15/22 1.8307% 1,534,136.3400 AAA AAA 100.51 1,533,934.14 1,541,914.41
Fixed Income 58933YAF2 MERCK CO INC 2.800% 5/18/23 2.6940% 2,000,000.0000 A1 A+ 103.94 1,948,640.00 2,078,720.00
Fixed Income 58989V2D5 MET TOWER MTN 1.250% 9/14/26 1.2563% 3,745,000.0000 AA3 AA- 99.50 3,741,554.60 3,726,125.20
Fixed Income 61747YEA9 MORGAN STANLEY 0.790% 5/30/25 0.7924% 8,885,000.0000 A1 BBB+ 99.69 8,889,710.25 8,857,723.05
Fixed Income 61744YAH1 MORGAN STANLEY 2.750% 5/19/22 2.7063% 2,000,000.0000 A1 BBB+ 101.61 2,047,260.00 2,032,280.00
Fixed Income 65479JAD5 NISSAN AUTO 1.930% 7/15/24 1.9109% 3,474,940.8100 AAA AAA 101.00 3,474,757.33 3,509,585.97
Fixed Income 65479GAD1 NISSAN AUTO 3.060% 3/15/23 3.0451% 678,775.4300 AAA AAA 100.49 678,753.45 682,101.43
Fixed Income 65558UBJ0 NORDEA BK ABP C D 0.210% 5/16/22 0.2099% 3,000,000.0000 100.03 3,000,300.89 3,001,020.00
Fixed Income 65558UBJ0 NORDEA BK ABP C D 0.210% 5/16/22 0.2099% 7,000,000.0000 100.03 7,000,702.07 7,002,380.00
Fixed Income 69353RFB9 PNC BANK NA MTN 2.625% 2/17/22 2.6068% 1,000,000.0000 A2 A 100.70 974,940.00 1,006,970.00
Fixed Income 69353RFL7 PNC BANK NA MTN 3.500% 6/08/23 3.3323% 5,000,000.0000 A2 A 105.03 4,993,318.05 5,251,700.00
Fixed Income 78015K7H1 ROYAL BANK OF MTN 1.150% 6/10/25 1.1478% 2,500,000.0000 A2 A 100.19 2,527,720.00 2,504,750.00
Fixed Income 78013XZU5 ROYAL BANK OF MTN 2.550% 7/16/24 2.4305% 6,500,000.0000 A2 A 104.92 6,581,445.00 6,819,475.00
Fixed Income 78445JAA5 S L M A 1.64331% 4/25/23 1.6309% 9,806.9200 BAA3 B 100.76 9,767.12 9,881.75
Fixed Income 79466LAG9 SALESFORCE COM INC 0.625% 7/15/24 0.6238% 1,350,000.0000 A2 A+ 100.19 1,349,311.50 1,352,565.00
Fixed Income 808513BN4 SCHWAB CHARLES 0.750% 3/18/24 0.7465% 2,785,000.0000 A2 A 100.48 2,783,607.50 2,798,228.75
Fixed Income 86959RQE3 SVENSKA C D 0.230% 5/10/22 0.2299% 3,000,000.0000 100.04 3,001,280.93 3,001,320.00
3 of 5
U.S. Bank
Investment Listing - Yield
As of 09/30/2021
Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 89114W7M1 TORONTO C D 0.240% 4/28/22 0.2399% 2,000,000.0000 100.05 1,999,999.94 2,000,900.00
Fixed Income 89114QCA4 TORONTO DOMINION MTN 2.650% 6/12/24 2.5183% 3,000,000.0000 A1 A 105.23 3,000,570.00 3,156,900.00
Fixed Income 89114QC48 TORONTO MTN 3.500% 7/19/23 3.3131% 5,000,000.0000 AA2 AA- 105.64 5,094,200.00 5,282,050.00
Fixed Income 89237VAB5 TOYOTA AUTO RECV 0.440% 10/15/24 0.4391% 2,960,000.0000 AAA AAA 100.20 2,959,772.08 2,965,860.80
Fixed Income 89239CAC3 TOYOTA LEASE OWNER 0.420% 10/21/24 0.4200% 3,185,000.0000 AAA N/A 100.00 3,184,957.00 3,185,095.55
Fixed Income 89236TJK2 TOYOTA MTR CR MTN 1.125% 6/18/26 1.1322% 7,285,000.0000 A1 A+ 99.36 7,281,794.60 7,238,594.55
Fixed Income 912828WU0 U S TREASURY I P S 0.125% 7/15/24 0.1171% 11,955,424.0000 AAA N/A 106.76 11,810,704.09 12,763,371.55
Fixed Income 91282CBG5 U S TREASURY NT 0.125% 1/31/23 0.1251% 10,000,000.0000 AAA N/A 99.95 9,998,046.88 9,994,900.00
Fixed Income 912828ZM5 U S TREASURY NT 0.125% 4/30/22 0.1250% 25,000,000.0000 AAA N/A 100.03 25,014,746.10 25,007,750.00
Fixed Income 91282CBA8 U S TREASURY NT 0.125% 12/15/23 0.1256% 6,500,000.0000 AAA N/A 99.53 6,491,367.19 6,469,515.00
Fixed Income 91282CAM3 U S TREASURY NT 0.250% 9/30/25 0.2555% 6,500,000.0000 AAA N/A 97.86 6,477,656.25 6,360,640.00
Fixed Income 91282CBH3 U S TREASURY NT 0.375% 1/31/26 0.3832% 18,000,000.0000 AAA N/A 97.85 17,781,875.00 17,613,360.00
Fixed Income 912828ZL7 U S TREASURY NT 0.375% 4/30/25 0.3792% 12,000,000.0000 AAA N/A 98.89 11,998,515.63 11,866,920.00
Fixed Income 91282CCX7 U S TREASURY NT 0.375% 9/15/24 0.3766% 3,000,000.0000 AAA N/A 99.57 2,985,468.75 2,987,100.00
Fixed Income 91282CBC4 U S TREASURY NT 0.375% 12/31/25 0.3827% 10,000,000.0000 AAA N/A 97.98 9,943,320.32 9,798,400.00
Fixed Income 91282CBT7 U S TREASURY NT 0.750% 3/31/26 0.7553% 10,000,000.0000 AAA N/A 99.29 9,943,359.37 9,929,300.00
Fixed Income 91282CCF6 U S TREASURY NT 0.750% 5/31/26 0.7564% 7,500,000.0000 AAA N/A 99.16 7,443,750.00 7,437,000.00
Fixed Income 91282CCW9 U S TREASURY NT 0.750% 8/31/26 0.7581% 3,000,000.0000 AAA N/A 98.93 2,964,609.38 2,967,900.00
Fixed Income 912828Z60 U S TREASURY NT 1.375% 1/31/22 1.3690% 20,000,000.0000 AAA N/A 100.44 20,174,609.38 20,088,000.00
Fixed Income 912828H86 U S TREASURY NT 1.500% 1/31/22 1.4928% 22,500,000.0000 AAA N/A 100.48 22,676,562.50 22,608,225.00
Fixed Income 912828YH7 U S TREASURY NT 1.500% 9/30/24 1.4574% 14,000,000.0000 AAA N/A 102.93 13,859,296.88 14,409,640.00
Fixed Income 912828R69 U S TREASURY NT 1.625% 5/31/23 1.5880% 5,000,000.0000 AAA N/A 102.33 4,757,226.56 5,116,600.00
Fixed Income 912828J43 U S TREASURY NT 1.750% 2/28/22 1.7378% 7,500,000.0000 AAA N/A 100.70 7,606,054.69 7,552,725.00
Fixed Income 912828L57 U S TREASURY NT 1.750% 9/30/22 1.7214% 10,000,000.0000 AAA N/A 101.66 9,953,007.82 10,166,400.00
Fixed Income 912828L24 U S TREASURY NT 1.875% 8/31/22 1.8447% 2,500,000.0000 AAA N/A 101.64 2,494,930.25 2,541,025.00
Fixed Income 912828XX3 U S TREASURY NT 2.000% 6/30/24 1.9197% 5,000,000.0000 AAA N/A 104.18 5,028,710.94 5,209,200.00
Fixed Income 912828M80 U S TREASURY NT 2.000% 11/30/22 1.9575% 8,000,000.0000 AAA N/A 102.17 7,907,500.00 8,173,760.00
Fixed Income 912828W48 U S TREASURY NT 2.125% 2/29/24 2.0395% 10,000,000.0000 AAA N/A 104.19 9,911,718.75 10,419,100.00
Fixed Income 912828U57 U S TREASURY NT 2.125% 11/30/23 2.0456% 15,000,000.0000 AAA N/A 103.88 14,723,632.81 15,582,450.00
Fixed Income 9128283J7 U S TREASURY NT 2.125% 11/30/24 2.0259% 16,500,000.0000 AAA N/A 104.89 16,783,886.72 17,307,015.00
Fixed Income 912828N30 U S TREASURY NT 2.125% 12/31/22 2.0740% 5,000,000.0000 AAA N/A 102.46 4,926,562.50 5,123,050.00
Fixed Income 912828V80 U S TREASURY NT 2.250% 1/31/24 2.1554% 7,500,000.0000 AAA 104.39 7,491,503.91 7,829,325.00
Fixed Income 9128286M7 U S TREASURY NT 2.250% 4/15/22 2.2238% 7,500,000.0000 AAA N/A 101.18 7,657,324.22 7,588,500.00
Fixed Income 9128286H8 U S TREASURY NT 2.375% 3/15/22 2.3500% 7,500,000.0000 AAA N/A 101.06 7,651,757.81 7,579,725.00
Fixed Income 9128284D9 U S TREASURY NT 2.500% 3/31/23 2.4165% 10,000,000.0000 AAA N/A 103.46 9,887,265.63 10,345,700.00
Fixed Income 912828WJ5 U S TREASURY NT 2.500% 5/15/24 2.3721% 7,000,000.0000 AAA N/A 105.39 7,193,046.88 7,377,370.00
Fixed Income 91324PEC2 UNITEDHEALTH 1.150% 5/15/26 1.1492% 1,755,000.0000 A3 A+ 100.07 1,760,683.15 1,756,263.60
Fixed Income 90331HPL1 US BANK NA MTN 2.050% 1/21/25 1.9791% 7,270,000.0000 A1 AA- 103.58 7,254,514.90 7,530,338.70
Fixed Income 90331HNL3 US BANK NA MTN 2.850% 1/23/23 2.7606% 2,000,000.0000 A1 AA- 103.24 1,992,640.00 2,064,760.00
Fixed Income 931142ER0 WALMART INC 1.050% 9/17/26 1.0503% 1,725,000.0000 AA2 AA 99.98 1,721,739.75 1,724,586.00
4 of 5
U.S. Bank
Investment Listing - Yield
As of 09/30/2021
Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 931142EK5 WALMART INC 3.400% 6/26/23 3.2340% 3,880,000.0000 AA2 AA 105.13 3,878,991.40 4,079,160.40
Total Consolidated 813,853,833.87
5 of 5
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U.S. Bank
Asset Detail - Consolidated
As of 09/30/2021
CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
Cash Equivalents
21687AYV9 COOPERATIEVE CENTRALE C P 11/29/21 99.98 2,000,000.0000 1,997,978.89 1,999,680.00 0.25 1,701.11
31846V567 FIRST AM GOVT OB FD CL Z 1.00 41,613.2300 41,613.23 41,613.23 0.01 -
31846V567 FIRST AM GOVT OB FD CL Z 1.00 1,846,484.8100 1,846,484.81 1,846,484.81 0.23 -
62479MAM5 MUFG BK LTD N Y BRH C P 1/21/22 99.96 2,000,000.0000 1,997,907.78 1,999,260.00 0.25 1,352.22
89233HAU8 TOYOTA MTR CR CORP DISC C P 1/28/22 99.96 4,000,000.0000 3,995,866.67 3,998,400.00 0.49 2,533.33
912796D30 U S TREASURY BILL 2/24/22 99.98 12,000,000.0000 11,997,256.50 11,997,600.00 1.47 343.50
Cash Equivalents Total 21,888,098.0400 21,877,107.88 21,883,038.04 2.69 5,930.16
Fixed Income
00440EAS6 ACE INA HOLDING 3.150% 3/15/25 107.40 2,000,000.0000 2,203,740.00 2,148,020.00 0.26 (55,720.00)
00440EAU1 ACE INA HOLDINGS 2.875% 11/03/22 102.30 4,169,000.0000 4,232,453.17 4,264,970.38 0.52 32,517.21
023135BW5 AMAZON COM INC 0.450% 5/12/24 99.80 5,490,000.0000 5,481,984.60 5,478,910.20 0.67 (3,074.40)
02665WDF5 AMERICAN HONDA MTN 1.950% 5/20/22 101.11 2,000,000.0000 2,032,780.00 2,022,100.00 0.25 (10,680.00)
02665WCZ2 AMERICAN HONDA MTN 2.400% 6/27/24 104.38 1,219,000.0000 1,213,843.63 1,272,355.63 0.16 58,512.00
02665WCJ8 AMERICAN HONDA MTN 3.450% 7/14/23 105.25 845,000.0000 843,538.15 889,370.95 0.11 45,832.80
02665WCQ2 AMERICAN HONDA MTN 3.625% 10/10/23 106.26 2,000,000.0000 1,998,320.00 2,125,100.00 0.26 126,780.00
03215PFN4 AMRESCO 0.95764% 6/25/29 98.67 119,021.6400 89,377.81 117,439.84 0.01 28,062.03
037833AZ3 APPLE INC 2.500% 2/09/25 105.14 3,922,000.0000 4,154,496.16 4,123,708.46 0.51 (30,787.70)
037833CU2 APPLE INC 2.850% 5/11/24 105.52 3,000,000.0000 3,017,760.00 3,165,690.00 0.39 147,930.00
06051GJD2 BANK AMER CORP MTN 1.319% 6/19/26 99.98 2,250,000.0000 2,254,432.50 2,249,460.00 0.28 (4,972.50)
06417MQL2 BANK NOVA C D 0.200% 6/23/22 100.02 5,000,000.0000 4,999,999.61 5,001,200.00 0.61 1,200.39
06417MNK7 BANK NOVA C D 0.220% 4/08/22 100.05 3,000,000.0000 3,000,000.00 3,001,350.00 0.37 1,350.00
06051GHF9 BANK OF AMERICA 3.550% 3/05/24 104.24 6,675,000.0000 6,770,625.75 6,958,287.00 0.85 187,661.25
06051GHY8 BANK OF AMERICAN MTN 2.015% 2/13/26 102.60 2,500,000.0000 2,583,450.00 2,564,925.00 0.32 (18,525.00)
06368FAC3 BANK OF MONTREAL MTN 1.250% 9/15/26 99.25 3,000,000.0000 2,994,647.40 2,977,530.00 0.37 (17,117.40)
06367WB85 BANK OF MONTREAL MTN 1.850% 5/01/25 102.90 7,000,000.0000 7,226,940.00 7,203,000.00 0.89 (23,940.00)
06417MMB8 BANK OF NOVA C D 0.280% 11/24/21 100.03 5,000,000.0000 5,000,000.00 5,001,550.00 0.61 1,550.00
06406RAA5 BANK OF NY MTN 2.600% 2/07/22 100.64 2,500,000.0000 2,504,475.00 2,515,875.00 0.31 11,400.00
06406RAE7 BANK OF NY MTN 2.950% 1/29/23 103.30 2,500,000.0000 2,489,555.00 2,582,400.00 0.32 92,845.00
05531FBG7 BB T CORPORATION MTN 3.050% 6/20/22 101.80 2,000,000.0000 2,049,420.00 2,035,920.00 0.25 (13,500.00)
084670BR8 BERKSHIRE HATHAWAY 2.750% 3/15/23 103.12 2,500,000.0000 2,440,950.00 2,577,925.00 0.32 136,975.00
084664BT7 BERKSHIRE HATHAWAY 3.000% 5/15/22 101.72 4,000,000.0000 4,131,120.00 4,068,600.00 0.50 (62,520.00)
09247XAL5 BLACKROCK INC 3.500% 3/18/24 107.19 1,000,000.0000 1,036,330.00 1,071,850.00 0.13 35,520.00
09690AAC7 BMW VEHICLE LEASE 0.330% 12/26/24 99.91 2,070,000.0000 2,069,786.38 2,068,074.90 0.25 (1,711.48)
14913Q2T5 CATERPILLAR FINL MTN 2.950% 2/26/22 101.08 2,000,000.0000 2,043,700.00 2,021,620.00 0.25 (22,080.00)
808513AT2 CHARLES SCHWAB CORP 2.650% 1/25/23 102.91 6,750,000.0000 6,729,480.00 6,946,357.50 0.85 216,877.50
166764AH3 CHEVRON CORP 3.191% 6/24/23 104.24 3,500,000.0000 3,441,095.00 3,648,330.00 0.45 207,235.00
00440EAP2 CHUBB INA HLDGS INC 2.700% 3/13/23 103.39 2,000,000.0000 1,937,000.00 2,067,700.00 0.25 130,700.00
3133ELYR9 F F C B DEB 0.250% 5/06/22 100.11 8,850,000.0000 8,838,760.50 8,859,646.50 1.09 20,886.00
3133EKWV4 F F C B DEB 1.850% 7/26/24 103.71 5,000,000.0000 5,048,280.00 5,185,600.00 0.64 137,320.00
3130A1XJ2 F H L B 2.875% 6/14/24 106.47 11,110,000.0000 11,589,031.30 11,828,261.50 1.45 239,230.20
1 of 4
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+-
+-
U.S. Bank
Asset Detail - Consolidated
As of 09/30/2021
CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
3130A4CH3 F H L B DEB 2.375% 3/14/25 105.90 5,225,000.0000 5,526,848.25 5,533,118.25 0.68 6,270.00
3130A2UW4 F H L B DEB 2.875% 9/13/24 106.89 2,500,000.0000 2,635,950.00 2,672,300.00 0.33 36,350.00
313383QR5 F H L B DEB 3.250% 6/09/23 105.08 5,000,000.0000 5,083,350.00 5,254,050.00 0.65 170,700.00
313383YJ4 F H L B DEB 3.375% 9/08/23 106.03 10,000,000.0000 10,211,831.00 10,602,500.00 1.30 390,669.00
3130A0F70 F H L B DEB 3.375% 12/08/23 106.66 10,000,000.0000 10,269,043.75 10,665,800.00 1.31 396,756.25
3137BFE98 F H L B GTD REMIC 3.171% 10/25/24 106.94 5,000,000.0000 5,378,515.62 5,346,900.00 0.66 (31,615.62)
3137EAEP0 F H L M C 1.500% 2/12/25 102.88 12,335,000.0000 12,510,182.05 12,690,371.35 1.56 180,189.30
3137EAEN5 F H L M C 2.750% 6/19/23 104.29 10,000,000.0000 9,956,500.00 10,429,400.00 1.28 472,900.00
3137EAEU9 F H L M C M T N 0.375% 7/21/25 98.69 5,030,000.0000 5,004,950.60 4,963,905.80 0.61 (41,044.80)
3137EAEX3 F H L M C M T N 0.375% 9/23/25 98.37 7,660,000.0000 7,636,943.40 7,535,371.80 0.93 (101,571.60)
31348SWZ3 F H L M C #786064 2.262% 1/01/28 100.61 1,389.2400 1,355.41 1,397.66 0.00 42.25
31394JY35 F H L M C MLTCL MT 9.50001% 9/25/43 114.93 500,242.4900 566,524.61 574,923.69 0.07 8,399.08
3133TCE95 F H L M C MLTCL MTG 3.807% 8/15/32 100.58 3,755.7500 3,759.69 3,777.54 0.00 17.85
3135G05G4 F N M A 0.250% 7/10/23 99.98 6,775,000.0000 6,760,433.75 6,773,441.75 0.83 13,008.00
3135G05X7 F N M A 0.375% 8/25/25 98.47 7,945,000.0000 7,907,817.40 7,823,282.60 0.96 (84,534.80)
3135G04Z3 F N M A 0.500% 6/17/25 99.40 9,905,000.0000 9,884,496.65 9,845,074.75 1.21 (39,421.90)
3135G06G3 F N M A 0.500% 11/07/25 98.71 8,255,000.0000 8,225,447.10 8,148,097.75 1.00 (77,349.35)
3135G0X24 F N M A 1.625% 1/07/25 103.42 10,000,000.0000 10,157,936.40 10,342,000.00 1.27 184,063.60
3135G0T45 F N M A 1.875% 4/05/22 100.92 5,000,000.0000 4,972,500.00 5,045,950.00 0.62 73,450.00
3135G0V34 F N M A 2.500% 2/05/24 105.03 5,000,000.0000 4,980,850.00 5,251,400.00 0.65 270,550.00
31371NUC7 F N M A #257179 4.500% 4/01/28 108.08 7,403.0600 7,829.47 8,000.86 0.00 171.39
31376KT22 F N M A #357969 5.000% 9/01/35 113.71 60,287.1000 64,808.62 68,550.05 0.01 3,741.43
31403DJZ3 F N M A #745580 5.000% 6/01/36 113.97 57,500.9500 61,813.51 65,535.56 0.01 3,722.05
31403GXF4 F N M A #748678 5.000% 10/01/33 110.65 799.9900 859.98 885.19 0.00 25.21
31406PQY8 F N M A #815971 5.000% 3/01/35 114.01 85,735.1700 92,165.32 97,748.38 0.01 5,583.06
31406XWT5 F N M A #823358 2.035% 2/01/35 105.28 68,468.6800 67,933.76 72,085.88 0.01 4,152.12
31407BXH7 F N M A #826080 5.000% 7/01/35 114.02 11,785.6900 12,669.59 13,438.40 0.00 768.81
31410F4V4 F N M A #888336 5.000% 7/01/36 113.38 99,528.8500 106,993.52 112,849.79 0.01 5,856.27
3138EG6F6 F N M A #AL0869 4.500% 6/01/29 108.09 5,354.5900 5,663.02 5,787.94 0.00 124.92
31417YAY3 F N M A #MA0022 4.500% 4/01/29 108.13 9,073.4500 9,596.06 9,810.67 0.00 214.61
3135G03U5 F N M A DEB 0.625% 4/22/25 99.80 14,000,000.0000 13,996,711.60 13,972,280.00 1.72 (24,431.60)
3135G0T94 F N M A DEB 2.375% 1/19/23 102.83 5,000,000.0000 4,910,990.00 5,141,450.00 0.63 230,460.00
31397QRE0 F N M A GTD REMIC 2.472% 2/25/41 101.55 101,078.1500 101,046.58 102,647.89 0.01 1,601.31
36225CAZ9 G N M A I I #080023 2.125% 12/20/26 103.48 9,538.2000 9,695.77 9,869.94 0.00 174.17
36225CC20 G N M A I I #080088 2.000% 6/20/27 101.86 6,739.0100 6,886.43 6,864.09 0.00 (22.34)
36225CNM4 G N M A I I #080395 1.875% 4/20/30 103.58 3,790.4200 3,756.05 3,926.08 0.00 170.03
36225CN28 G N M A I I #080408 1.875% 5/20/30 103.60 31,069.2100 30,753.66 32,187.39 0.00 1,433.73
36225DCB8 G N M A I I #080965 2.250% 7/20/34 103.99 26,123.7300 26,107.41 27,165.02 0.00 1,057.61
43813GAC5 HONDA AUTO 0.270% 4/21/25 99.95 1,605,000.0000 1,604,970.63 1,604,165.40 0.20 (805.23)
43813KAC6 HONDA AUTO 0.370% 10/18/24 100.11 3,235,000.0000 3,234,524.78 3,238,526.15 0.40 4,001.37
43815HAC1 HONDA AUTO 2.94999% 8/22/22 100.23 198,609.4400 198,582.19 199,056.31 0.02 474.12
438516CB0 HONEYWELL 1.350% 6/01/25 101.64 5,000,000.0000 5,119,000.00 5,081,850.00 0.62 (37,150.00)
2 of 4
U.S. Bank
Asset Detail - Consolidated
As of 09/30/2021
CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
44934KAC8 HTUNDAI AUTO REC TR 0.380% 1/15/26 99.81 6,040,000.0000 6,038,666.97 6,028,403.20 0.74 (10,263.77)
44891VAC5 HYUNDAI AUTO LEASE 0.330% 6/17/24 99.90 4,155,000.0000 4,154,376.75 4,150,678.80 0.51 (3,697.95)
44933LAC7 HYUNDAI AUTO REC 0.380% 9/15/25 99.96 2,100,000.0000 2,099,779.08 2,099,160.00 0.26 (619.08)
458140BD1 INTEL CORP 2.875% 5/11/24 105.73 5,000,000.0000 5,025,900.00 5,286,500.00 0.65 260,600.00
4581X0DZ8 INTER AMER BK M T N 0.500% 9/23/24 99.72 10,775,000.0000 10,767,026.50 10,744,830.00 1.32 (22,196.50)
4581X0DN5 INTER AMER BK M T N 0.625% 7/15/25 99.42 5,050,000.0000 5,071,967.50 5,020,609.00 0.62 (51,358.50)
4581X0DV7 INTER AMER BK M T N 0.875% 4/20/26 99.61 13,370,000.0000 13,308,765.40 13,317,857.00 1.64 9,091.60
4581X0CZ9 INTER AMER DEV BK 1.750% 9/14/22 101.48 6,500,000.0000 6,249,655.00 6,596,200.00 0.81 346,545.00
4581X0CW6 INTER AMER DEV BK 2.125% 1/18/22 100.57 3,000,000.0000 2,996,310.00 3,017,220.00 0.37 20,910.00
459058FY4 INTL BK 2.000% 1/26/22 100.57 10,000,000.0000 10,006,350.00 10,057,400.00 1.24 51,050.00
459058JL8 INTL BK M T N 0.500% 10/28/25 98.67 15,000,000.0000 14,964,951.60 14,799,750.00 1.82 (165,201.60)
459058JB0 INTL BK M T N 0.626% 4/22/25 99.66 6,245,000.0000 6,220,831.85 6,224,016.80 0.76 3,184.95
24422EUM9 JOHN DEERE MTN 3.650% 10/12/23 106.63 1,250,000.0000 1,250,237.50 1,332,862.50 0.16 82,625.00
47789QAC4 JOHN DEERE OWN 0.520% 3/16/26 99.94 2,820,000.0000 2,819,748.46 2,818,336.20 0.35 (1,412.26)
47788UAC6 JOHN DEERE OWNER 0.360% 9/15/25 99.92 2,300,000.0000 2,299,557.94 2,298,091.00 0.28 (1,466.94)
47787NAC3 JOHN DEERE OWNER 0.510% 11/15/24 100.23 1,480,000.0000 1,479,774.45 1,483,404.00 0.18 3,629.55
47788EAC2 JOHN DEERE OWNER 3.080% 11/15/22 100.19 181,085.4100 181,071.68 181,431.28 0.02 359.60
46625HRL6 JP MORGAN CHASE CO 2.700% 5/18/23 103.44 5,000,000.0000 4,821,910.00 5,171,750.00 0.64 349,840.00
46647PBH8 JPMORGAN CHASE CO 2.005% 3/13/26 102.43 3,500,000.0000 3,602,345.00 3,585,015.00 0.44 (17,330.00)
46647PAU0 JPMORGAN CHASE CO 3.797% 7/23/24 105.72 2,500,000.0000 2,632,175.00 2,642,875.00 0.32 10,700.00
525ESC0Y6 LEHMAN BRTH HLD ESC - 2,000,000.0000 1,019,380.10 - - (1,019,380.10)
525ESCIB7 LEHMAN BRTH MTN ES 0.00001% 1/24/13 0.68 600,000.0000 316,428.27 4,080.00 0.00 (312,348.27)
58769KAD6 MERCEDES BENZ AUTO 0.400% 11/15/24 99.98 3,315,000.0000 3,314,749.72 3,314,237.55 0.41 (512.17)
58770FAC6 MERCEDES BENZ AUTO 1.840% 12/15/22 100.51 1,534,136.3400 1,533,934.14 1,541,914.41 0.19 7,980.27
58933YAF2 MERCK CO INC 2.800% 5/18/23 103.94 2,000,000.0000 1,948,640.00 2,078,720.00 0.26 130,080.00
58989V2D5 MET TOWER MTN 1.250% 9/14/26 99.50 3,745,000.0000 3,741,554.60 3,726,125.20 0.46 (15,429.40)
61747YEA9 MORGAN STANLEY 0.790% 5/30/25 99.69 8,885,000.0000 8,889,710.25 8,857,723.05 1.09 (31,987.20)
61744YAH1 MORGAN STANLEY 2.750% 5/19/22 101.61 2,000,000.0000 2,047,260.00 2,032,280.00 0.25 (14,980.00)
65479JAD5 NISSAN AUTO 1.930% 7/15/24 101.00 3,474,940.8100 3,474,757.33 3,509,585.97 0.43 34,828.64
65479GAD1 NISSAN AUTO 3.060% 3/15/23 100.49 678,775.4300 678,753.45 682,101.43 0.08 3,347.98
65558UBJ0 NORDEA BK ABP C D 0.210% 5/16/22 100.03 3,000,000.0000 3,000,300.89 3,001,020.00 0.37 719.11
65558UBJ0 NORDEA BK ABP C D 0.210% 5/16/22 100.03 7,000,000.0000 7,000,702.07 7,002,380.00 0.86 1,677.93
69353RFB9 PNC BANK NA MTN 2.625% 2/17/22 100.70 1,000,000.0000 974,940.00 1,006,970.00 0.12 32,030.00
69353RFL7 PNC BANK NA MTN 3.500% 6/08/23 105.03 5,000,000.0000 4,993,318.05 5,251,700.00 0.65 258,381.95
78015K7H1 ROYAL BANK OF MTN 1.150% 6/10/25 100.19 2,500,000.0000 2,527,720.00 2,504,750.00 0.31 (22,970.00)
78013XZU5 ROYAL BANK OF MTN 2.550% 7/16/24 104.92 6,500,000.0000 6,581,445.00 6,819,475.00 0.84 238,030.00
78445JAA5 S L M A 1.64331% 4/25/23 100.76 9,806.9200 9,767.12 9,881.75 0.00 114.63
79466LAG9 SALESFORCE COM INC 0.625% 7/15/24 100.19 1,350,000.0000 1,349,311.50 1,352,565.00 0.17 3,253.50
808513BN4 SCHWAB CHARLES 0.750% 3/18/24 100.48 2,785,000.0000 2,783,607.50 2,798,228.75 0.34 14,621.25
86959RQE3 SVENSKA C D 0.230% 5/10/22 100.04 3,000,000.0000 3,001,280.93 3,001,320.00 0.37 39.07
89114W7M1 TORONTO C D 0.240% 4/28/22 100.05 2,000,000.0000 1,999,999.94 2,000,900.00 0.25 900.06
89114QCA4 TORONTO DOMINION MTN 2.650% 6/12/24 105.23 3,000,000.0000 3,000,570.00 3,156,900.00 0.39 156,330.00
3 of 4
U.S. Bank
Asset Detail - Consolidated
As of 09/30/2021
CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
89114QC48 TORONTO MTN 3.500% 7/19/23 105.64 5,000,000.0000 5,094,200.00 5,282,050.00 0.65 187,850.00
89237VAB5 TOYOTA AUTO RECV 0.440% 10/15/24 100.20 2,960,000.0000 2,959,772.08 2,965,860.80 0.36 6,088.72
89239CAC3 TOYOTA LEASE OWNER 0.420% 10/21/24 100.00 3,185,000.0000 3,184,957.00 3,185,095.55 0.39 138.55
89236TJK2 TOYOTA MTR CR MTN 1.125% 6/18/26 99.36 7,285,000.0000 7,281,794.60 7,238,594.55 0.89 (43,200.05)
912828WU0 U S TREASURY I P S 0.125% 7/15/24 106.76 11,955,424.0000 11,810,704.09 12,763,371.55 1.57 952,667.46
91282CBG5 U S TREASURY NT 0.125% 1/31/23 99.95 10,000,000.0000 9,998,046.88 9,994,900.00 1.23 (3,146.88)
912828ZM5 U S TREASURY NT 0.125% 4/30/22 100.03 25,000,000.0000 25,014,746.10 25,007,750.00 3.07 (6,996.10)
91282CBA8 U S TREASURY NT 0.125% 12/15/23 99.53 6,500,000.0000 6,491,367.19 6,469,515.00 0.79 (21,852.19)
91282CAM3 U S TREASURY NT 0.250% 9/30/25 97.86 6,500,000.0000 6,477,656.25 6,360,640.00 0.78 (117,016.25)
91282CBH3 U S TREASURY NT 0.375% 1/31/26 97.85 18,000,000.0000 17,781,875.00 17,613,360.00 2.16 (168,515.00)
912828ZL7 U S TREASURY NT 0.375% 4/30/25 98.89 12,000,000.0000 11,998,515.63 11,866,920.00 1.46 (131,595.63)
91282CCX7 U S TREASURY NT 0.375% 9/15/24 99.57 3,000,000.0000 2,985,468.75 2,987,100.00 0.37 1,631.25
91282CBC4 U S TREASURY NT 0.375% 12/31/25 97.98 10,000,000.0000 9,943,320.32 9,798,400.00 1.20 (144,920.32)
91282CBT7 U S TREASURY NT 0.750% 3/31/26 99.29 10,000,000.0000 9,943,359.37 9,929,300.00 1.22 (14,059.37)
91282CCF6 U S TREASURY NT 0.750% 5/31/26 99.16 7,500,000.0000 7,443,750.00 7,437,000.00 0.91 (6,750.00)
91282CCW9 U S TREASURY NT 0.750% 8/31/26 98.93 3,000,000.0000 2,964,609.38 2,967,900.00 0.36 3,290.62
912828Z60 U S TREASURY NT 1.375% 1/31/22 100.44 20,000,000.0000 20,174,609.38 20,088,000.00 2.47 (86,609.38)
912828H86 U S TREASURY NT 1.500% 1/31/22 100.48 22,500,000.0000 22,676,562.50 22,608,225.00 2.78 (68,337.50)
912828YH7 U S TREASURY NT 1.500% 9/30/24 102.93 14,000,000.0000 13,859,296.88 14,409,640.00 1.77 550,343.12
912828R69 U S TREASURY NT 1.625% 5/31/23 102.33 5,000,000.0000 4,757,226.56 5,116,600.00 0.63 359,373.44
912828J43 U S TREASURY NT 1.750% 2/28/22 100.70 7,500,000.0000 7,606,054.69 7,552,725.00 0.93 (53,329.69)
912828L57 U S TREASURY NT 1.750% 9/30/22 101.66 10,000,000.0000 9,953,007.82 10,166,400.00 1.25 213,392.18
912828L24 U S TREASURY NT 1.875% 8/31/22 101.64 2,500,000.0000 2,494,930.25 2,541,025.00 0.31 46,094.75
912828XX3 U S TREASURY NT 2.000% 6/30/24 104.18 5,000,000.0000 5,028,710.94 5,209,200.00 0.64 180,489.06
912828M80 U S TREASURY NT 2.000% 11/30/22 102.17 8,000,000.0000 7,907,500.00 8,173,760.00 1.00 266,260.00
912828W48 U S TREASURY NT 2.125% 2/29/24 104.19 10,000,000.0000 9,911,718.75 10,419,100.00 1.28 507,381.25
912828U57 U S TREASURY NT 2.125% 11/30/23 103.88 15,000,000.0000 14,723,632.81 15,582,450.00 1.91 858,817.19
9128283J7 U S TREASURY NT 2.125% 11/30/24 104.89 16,500,000.0000 16,783,886.72 17,307,015.00 2.13 523,128.28
912828N30 U S TREASURY NT 2.125% 12/31/22 102.46 5,000,000.0000 4,926,562.50 5,123,050.00 0.63 196,487.50
912828V80 U S TREASURY NT 2.250% 1/31/24 104.39 7,500,000.0000 7,491,503.91 7,829,325.00 0.96 337,821.09
9128286M7 U S TREASURY NT 2.250% 4/15/22 101.18 7,500,000.0000 7,657,324.22 7,588,500.00 0.93 (68,824.22)
9128286H8 U S TREASURY NT 2.375% 3/15/22 101.06 7,500,000.0000 7,651,757.81 7,579,725.00 0.93 (72,032.81)
9128284D9 U S TREASURY NT 2.500% 3/31/23 103.46 10,000,000.0000 9,887,265.63 10,345,700.00 1.27 458,434.37
912828WJ5 U S TREASURY NT 2.500% 5/15/24 105.39 7,000,000.0000 7,193,046.88 7,377,370.00 0.91 184,323.12
91324PEC2 UNITEDHEALTH 1.150% 5/15/26 100.07 1,755,000.0000 1,760,683.15 1,756,263.60 0.22 (4,419.55)
90331HPL1 US BANK NA MTN 2.050% 1/21/25 103.58 7,270,000.0000 7,254,514.90 7,530,338.70 0.93 275,823.80
90331HNL3 US BANK NA MTN 2.850% 1/23/23 103.24 2,000,000.0000 1,992,640.00 2,064,760.00 0.25 72,120.00
931142ER0 WALMART INC 1.050% 9/17/26 99.98 1,725,000.0000 1,721,739.75 1,724,586.00 0.21 2,846.25
931142EK5 WALMART INC 3.400% 6/26/23 105.13 3,880,000.0000 3,878,991.40 4,079,160.40 0.50 200,169.00
Fixed Income Total 781,386,463.7200 782,642,807.22 791,970,795.83 97.31 9,327,988.61
Grand Total 803,274,561.7600 804,519,915.10 813,853,833.87 100.00 9,333,918.77
4 of 4
+-
+-
t t t t l
I
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
ACQUISITIONS
07/01/2021 912828ZM5 PURCHASED PAR VALUE OF U S TREASURY NT 0.125% 4/30/22 /J.P. MORGAN
SECURITIES LLC/10,000,000 PAR VALUE AT 100.0390625 %
10,000,000.0000 1.000391 -10,003,906.25 10,003,906.25 0.00
07/02/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 126.2800 1.000000 -126.28 126.28 0.00
07/02/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 6,555,760.2700 1.000000 -6,555,760.27 6,555,760.27 0.00
07/06/2021 05531FBG7 PURCHASED PAR VALUE OF BB T CORPORATION MTN 3.050% 6/20/22 /GOLDMAN
SACHS & CO. LLC/2,000,000 PAR VALUE AT 102.471 %
2,000,000.0000 1.024710 -2,049,420.00 2,049,420.00 0.00
07/06/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 30,000.0000 1.000000 -30,000.00 30,000.00 0.00
07/07/2021 3137BFE98 PURCHASED PAR VALUE OF F H L B GTD REMIC 3.171% 10/25/24 /MORGAN
STANLEY & CO. LLC/5,000,000 PAR VALUE AT 107.570312 %
5,000,000.0000 1.075703 -5,378,515.62 5,378,515.62 0.00
07/08/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 19,665.6200 1.000000 -19,665.62 19,665.62 0.00
07/08/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,045,000.0000 1.000000 -3,045,000.00 3,045,000.00 0.00
07/12/2021 79466LAG9 PURCHASED PAR VALUE OF SALESFORCE COM INC 0.625% 7/15/24 /CITIGROUP
GLOBAL MARKETS INC./1,350,000 PAR VALUE AT 99.949 %
1,350,000.0000 0.999490 -1,349,311.50 1,349,311.50 0.00
07/14/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 14,576.2500 1.000000 -14,576.25 14,576.25 0.00
07/15/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,586,232.3600 1.000000 -3,586,232.36 3,586,232.36 0.00
07/15/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 23,118.2600 1.000000 -23,118.26 23,118.26 0.00
07/16/2021 037833AZ3 PURCHASED PAR VALUE OF APPLE INC 2.500% 2/09/25 /JEFFERIES
LLC/3,922,000 PAR VALUE AT 105.928 %
3,922,000.0000 1.059280 -4,154,496.16 4,154,496.16 0.00
07/16/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 82,875.0000 1.000000 -82,875.00 82,875.00 0.00
07/19/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 254,417.4700 1.000000 -254,417.47 254,417.47 0.00
07/20/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 15,479.2200 1.000000 -15,479.22 15,479.22 0.00
07/20/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,500,012.5000 1.000000 -2,500,012.50 2,500,012.50 0.00
07/21/2021 47789QAC4 PURCHASED PAR VALUE OF JOHN DEERE OWN 0.00001% 3/16/26 /MITSUBISHI
UFJ SECURITIES USA/2,820,000 PAR VALUE AT 99.99108014 %
2,820,000.0000 0.999911 -2,819,748.46 2,819,748.46 0.00
07/21/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 162,976.9300 1.000000 -162,976.93 162,976.93 0.00
07/22/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,000,000.0000 1.000000 -5,000,000.00 5,000,000.00 0.00
07/23/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 75,962.5000 1.000000 -75,962.50 75,962.50 0.00
07/26/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 12,267,997.5700 1.000000 -12,267,997.57 12,267,997.57 0.00
07/28/2021 44934KAC8 PURCHASED PAR VALUE OF HTUNDAI AUTO REC TR 0.590% 1/15/26 /CITIGROUP
GLOBAL MARKETS INC./6,040,000 PAR VALUE AT 99.97792997 %
6,040,000.0000 0.999779 -6,038,666.97 6,038,666.97 0.00
07/29/2021 912796F61 PURCHASED PAR VALUE OF U S TREASURY BILL 9/30/21 /MORGAN STANLEY
& CO. LLC/14,000,000 PAR VALUE AT 99.993 %
14,000,000.0000 0.999930 -13,999,020.00 13,999,020.00 0.00
07/29/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 7,000,000.0000 1.000000 -7,000,000.00 7,000,000.00 0.00
07/29/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 36,875.0000 1.000000 -36,875.00 36,875.00 0.00
08/02/2021 89239CAC3 PURCHASED PAR VALUE OF TOYOTA LEASE OWNER 0.420% 10/21/24 /MITSUBISHI
UFJ SECURITIES USA/3,185,000 PAR VALUE AT 99.99864992 %
3,185,000.0000 0.999987 -3,184,957.00 3,184,957.00 0.00
08/02/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 53,543,125.0000 1.000000 -53,543,125.00 53,543,125.00 0.00
08/03/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 60.1900 1.000000 -60.19 60.19 0.001 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
08/03/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 115.2100 1.000000 -115.21 115.21 0.00
08/05/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 62,500.0000 1.000000 -62,500.00 62,500.00 0.00
08/09/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 81,525.0000 1.000000 -81,525.00 81,525.00 0.00
08/12/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 92,512.5000 1.000000 -92,512.50 92,512.50 0.00
08/13/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 25,187.5000 1.000000 -25,187.50 25,187.50 0.00
08/16/2021 06367WB85 PURCHASED PAR VALUE OF BANK OF MONTREAL MTN 1.850% 5/01/25 /J.P.
MORGAN SECURITIES LLC/7,000,000 PAR VALUE AT 103.242 %
7,000,000.0000 1.032420 -7,226,940.00 7,226,940.00 0.00
08/16/2021 912796F61 PURCHASED PAR VALUE OF U S TREASURY BILL 9/30/21 /WELLS FARGO
SECURITIES, LLC/5,000,000 PAR VALUE AT 99.9949126 %
5,000,000.0000 0.999949 -4,999,745.63 4,999,745.63 0.00
08/16/2021 912828H86 PURCHASED PAR VALUE OF U S TREASURY NT 1.500% 1/31/22 /CITIGROUP
GLOBAL MARKETS INC./5,000,000 PAR VALUE AT 100.65625 %
5,000,000.0000 1.006563 -5,032,812.50 5,032,812.50 0.00
08/16/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,232.7600 1.000000 -1,232.76 1,232.76 0.00
08/17/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 13,125.0000 1.000000 -13,125.00 13,125.00 0.00
08/18/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 23,931.0800 1.000000 -23,931.08 23,931.08 0.00
08/20/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,407.9000 1.000000 -2,407.90 2,407.90 0.00
08/23/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 155,473.9800 1.000000 -155,473.98 155,473.98 0.00
08/25/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 7,525,000.0000 1.000000 -7,525,000.00 7,525,000.00 0.00
08/25/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 6,505.1100 1.000000 -6,505.11 6,505.11 0.00
08/25/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 32,585.3600 1.000000 -32,585.36 32,585.36 0.00
08/26/2021 86959RQE3 PURCHASED PAR VALUE OF SVENSKA C D 0.230% 5/10/22 /WELLS FARGO
SECURITIES, LLC/3,000,000 PAR VALUE AT 100.04269767 %
3,000,000.0000 1.000427 -3,001,280.93 3,001,280.93 0.00
08/26/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 13,029,500.0000 1.000000 -13,029,500.00 13,029,500.00 0.00
08/26/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 13,212.5000 1.000000 -13,212.50 13,212.50 0.00
08/27/2021 912828H86 PURCHASED PAR VALUE OF U S TREASURY NT 1.500% 1/31/22 /J.P. MORGAN
SECURITIES LLC/10,000,000 PAR VALUE AT 100.6171875 %
10,000,000.0000 1.006172 -10,061,718.75 10,061,718.75 0.00
08/31/2021 912796D30 PURCHASED PAR VALUE OF U S TREASURY BILL 2/24/22 /BOFA SECURITIES,
INC./FXD INC/13,250,000 PAR VALUE AT 99.97713751 %
13,250,000.0000 0.999771 -13,246,970.72 13,246,970.72 0.00
08/31/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 162,500.0000 1.000000 -162,500.00 162,500.00 0.00
09/02/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 166.4100 1.000000 -166.41 166.41 0.00
09/02/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 120.0500 1.000000 -120.05 120.05 0.00
09/07/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 118,481.2500 1.000000 -118,481.25 118,481.25 0.00
09/08/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 168,750.0000 1.000000 -168,750.00 168,750.00 0.00
09/10/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,086,038.8900 1.000000 -5,086,038.89 5,086,038.89 0.00
09/13/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 98,025.0000 1.000000 -98,025.00 98,025.00 0.00
09/14/2021 58989V2D5 PURCHASED PAR VALUE OF MET TOWER MTN 1.250% 9/14/26 /BOFA
SECURITIES, INC./FXD INC/3,745,000 PAR VALUE AT 99.908 %
3,745,000.0000 0.999080 -3,741,554.60 3,741,554.60 0.00
09/14/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 56,875.0000 1.000000 -56,875.00 56,875.00 0.00
2 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/15/2021 06368FAC3 PURCHASED PAR VALUE OF BANK OF MONTREAL MTN 1.250% 9/15/26 /BMO
CAPITAL MARKETS CORP/BONDS/1,020,000 PAR VALUE AT 99.879 %
1,020,000.0000 0.998790 -1,018,765.80 1,018,765.80 0.00
09/15/2021 06368FAC3 PURCHASED PAR VALUE OF BANK OF MONTREAL MTN 1.250% 9/15/26 /J.P.
MORGAN SECURITIES LLC/1,980,000 PAR VALUE AT 99.792 %
1,980,000.0000 0.997920 -1,975,881.60 1,975,881.60 0.00
09/15/2021 09690AAC7 PURCHASED PAR VALUE OF BMW VEHICLE LEASE 0.330% 12/26/24 /WELLS FARGO
SECURITIES, LLC/2,070,000 PAR VALUE AT 99.98968019 %
2,070,000.0000 0.999897 -2,069,786.38 2,069,786.38 0.00
09/15/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 89,062.5000 1.000000 -89,062.50 89,062.50 0.00
09/15/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,227.9600 1.000000 -2,227.96 2,227.96 0.00
09/16/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 8,648,282.6900 1.000000 -8,648,282.69 8,648,282.69 0.00
09/17/2021 931142ER0 PURCHASED PAR VALUE OF WALMART INC 1.050% 9/17/26 /MIZUHO
SECURITIES USA FXD INC/1,725,000 PAR VALUE AT 99.811 %
1,725,000.0000 0.998110 -1,721,739.75 1,721,739.75 0.00
09/20/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,783.6000 1.000000 -1,783.60 1,783.60 0.00
09/20/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 31,188.6700 1.000000 -31,188.67 31,188.67 0.00
09/21/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 146,871.9700 1.000000 -146,871.97 146,871.97 0.00
09/23/2021 4581X0DZ8 PURCHASED PAR VALUE OF INTER AMER BK M T N 0.500% 9/23/24 /J.P. MORGAN
SECURITIES LLC/10,775,000 PAR VALUE AT 99.926 %
10,775,000.0000 0.999260 -10,767,026.50 10,767,026.50 0.00
09/24/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,247,128.6500 1.000000 -1,247,128.65 1,247,128.65 0.00
09/27/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 36,296.3400 1.000000 -36,296.34 36,296.34 0.00
09/29/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 6,749,826.8800 1.000000 -6,749,826.88 6,749,826.88 0.00
09/30/2021 91282CCX7 PURCHASED PAR VALUE OF U S TREASURY NT 0.375% 9/15/24 /GOLDMAN
SACHS & CO. LLC/3,000,000 PAR VALUE AT 99.515625 %
3,000,000.0000 0.995156 -2,985,468.75 2,985,468.75 0.00
09/30/2021 91282CCW9 PURCHASED PAR VALUE OF U S TREASURY NT 0.00001% 8/31/26 /GOLDMAN
SACHS & CO. LLC/3,000,000 PAR VALUE AT 98.82031267 %
3,000,000.0000 0.988203 -2,964,609.38 2,964,609.38 0.00
09/30/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 19,000,000.0000 1.000000 -19,000,000.00 19,000,000.00 0.00
09/30/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 52,703.8000 1.000000 -52,703.80 52,703.80 0.00
09/30/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 510,356.0200 1.000000 -510,356.02 510,356.02 0.00
TOTAL ACQUISITIONS 276,367,760.0000 -277,278,103.25 277,278,103.25 0.00
DISPOSITIONS
07/01/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,006,012.2300 1.000000 10,006,012.23 -10,006,012.23 0.00
07/02/2021 912828U65 SOLD PAR VALUE OF U S TREASURY NT 1.750% 11/30/21 /CITIGROUP GLOBAL
MARKETS INC./6,500,000 PAR VALUE AT 100.70312508 %
-6,500,000.0000 1.007031 6,545,703.13 -6,407,599.90 138,103.23
07/06/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,052,131.1100 1.000000 2,052,131.11 -2,052,131.11 0.00
07/07/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -5,299,908.1200 1.000000 5,299,908.12 -5,299,908.12 0.00
07/08/2021 594918BP8 FULL CALL PAR VALUE OF MICROSOFT CORP 1.550% 8/08/21 /CALLS/ -3,045,000.0000 1.000000 3,045,000.00 -3,041,385.15 3,614.85
07/12/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,340,842.7500 1.000000 1,340,842.75 -1,340,842.75 0.00
07/15/2021 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C #786064 2.262% 1/01/28 JUNE FHLMC
DUE 7/15/21
-14.2300 0.000000 14.23 -13.88 0.35
07/15/2021 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.855% 8/15/32 -75.2500 0.000000 75.25 -75.33 -0.08
07/15/2021 47788EAC2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 3.080% 11/15/22 -100,924.9300 0.000000 100,924.93 -100,917.28 7.65
3 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/15/2021 58770FAC6 PAID DOWN PAR VALUE OF MERCEDES BENZ AUTO 1.840% 12/15/22 -130,414.3000 0.000000 130,414.30 -130,397.11 17.19
07/15/2021 65479JAD5 PAID DOWN PAR VALUE OF NISSAN AUTO 1.930% 7/15/24 -118,178.5800 0.000000 118,178.58 -118,172.34 6.24
07/15/2021 65479GAD1 PAID DOWN PAR VALUE OF NISSAN AUTO 3.060% 3/15/23 -162,270.8900 0.000000 162,270.89 -162,265.63 5.26
07/15/2021 912828V72 SOLD PAR VALUE OF U S TREASURY NT 1.875% 1/31/22 /CITIGROUP GLOBAL
MARKETS INC./3,000,000 PAR VALUE AT 100.99218767 %
-3,000,000.0000 1.009922 3,029,765.63 -3,004,814.74 24,950.89
07/16/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,197,256.8500 1.000000 4,197,256.85 -4,197,256.85 0.00
07/19/2021 43814UAG4 PAID DOWN PAR VALUE OF HONDA AUTO 3.010% 5/18/22 -74,425.9400 0.000000 74,425.94 -74,424.32 1.62
07/20/2021 45950KCJ7 MATURED PAR VALUE OF INTL FINANCE CORP 1.125% 7/20/21 2,500,000 PAR
VALUE AT 100 %
-2,500,000.0000 1.000000 2,500,000.00 -2,441,600.00 58,400.00
07/20/2021 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I #080023 2.125% 12/20/26 JUNE GNMA
DUE 7/20/21
-251.5500 0.000000 251.55 -255.71 -4.16
07/20/2021 36225CC20 PAID DOWN PAR VALUE OF G N M A I I #080088 2.875% 6/20/27 JUNE GNMA DUE
7/20/21
-107.7300 0.000000 107.73 -110.09 -2.36
07/20/2021 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I #080395 2.875% 4/20/30 JUNE GNMA DUE
7/20/21
-137.4800 0.000000 137.48 -136.23 1.25
07/20/2021 36225CN28 PAID DOWN PAR VALUE OF G N M A I I #080408 2.875% 5/20/30 JUNE GNMA DUE
7/20/21
-565.5600 0.000000 565.56 -559.82 5.74
07/20/2021 36225DCB8 PAID DOWN PAR VALUE OF G N M A I I #080965 2.250% 7/20/34 JUNE GNMA DUE
7/20/21
-176.4800 0.000000 176.48 -176.37 0.11
07/21/2021 43815HAC1 PAID DOWN PAR VALUE OF HONDA AUTO 2.950% 8/22/22 -160,995.3700 3.150809 160,995.37 -160,973.28 22.09
07/21/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,735,799.7100 1.000000 2,735,799.71 -2,735,799.71 0.00
07/22/2021 912796C49 MATURED PAR VALUE OF U S TREASURY BILL 7/22/21 5,000,000 PAR VALUE
AT 100 %
-5,000,000.0000 1.000000 4,997,661.81 -4,997,661.81 0.00
07/26/2021 62479LUS2 MATURED PAR VALUE OF MUFG BK LTD N Y BRH C P 7/26/21 12,000,000 PAR
VALUE AT 100 %
-12,000,000.0000 1.000000 11,997,000.00 -11,997,000.00 0.00
07/26/2021 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -13,184.9900 0.000000 13,184.99 -14,932.00 -1,747.01
07/26/2021 31371NUC7 PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 JUNE FNMA DUE
7/25/21
-114.0000 0.000000 114.00 -120.57 -6.57
07/26/2021 31376KT22 PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 JUNE FNMA DUE
7/25/21
-2,353.5900 0.000000 2,353.59 -2,530.11 -176.52
07/26/2021 31403DJZ3 PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 JUNE FNMA DUE
7/25/21
-1,549.4000 0.000000 1,549.40 -1,665.60 -116.20
07/26/2021 31403GXF4 PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 JUNE FNMA DUE
7/25/21
-3.9800 0.000000 3.98 -4.28 -0.30
07/26/2021 31406PQY8 PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 JUNE FNMA DUE
7/25/21
-2,202.4600 0.000000 2,202.46 -2,367.64 -165.18
07/26/2021 31406XWT5 PAID DOWN PAR VALUE OF F N M A #823358 2.035% 2/01/35 JUNE FNMA DUE
7/25/21
-561.9600 0.000000 561.96 -557.57 4.39
07/26/2021 31407BXH7 PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 JUNE FNMA DUE
7/25/21
-402.8900 0.000000 402.89 -433.11 -30.22
4 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/26/2021 31410F4V4 PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 JUNE FNMA DUE
7/25/21
-3,710.1300 0.000000 3,710.13 -3,988.39 -278.26
07/26/2021 3138EG6F6 PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 JUNE FNMA DUE
7/25/21
-151.2100 0.000000 151.21 -159.92 -8.71
07/26/2021 31417YAY3 PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 JUNE FNMA DUE
7/25/21
-250.3900 0.000000 250.39 -264.81 -14.42
07/26/2021 31397QRE0 PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -2,789.9900 0.000000 2,789.99 -2,789.12 0.87
07/26/2021 78445JAA5 PAID DOWN PAR VALUE OF S L M A 1.69437% 4/25/23 -311.7300 0.000000 311.73 -310.47 1.26
07/28/2021 61747WAL3 MATURED PAR VALUE OF MORGAN STANLEY 5.500% 7/28/21 2,800,000 PAR
VALUE AT 100 %
-2,800,000.0000 1.000000 2,800,000.00 -3,200,848.00 -400,848.00
07/28/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -3,161,666.9700 1.000000 3,161,666.97 -3,161,666.97 0.00
07/29/2021 912796C56 MATURED PAR VALUE OF U S TREASURY BILL 7/29/21 7,000,000 PAR VALUE
AT 100 %
-7,000,000.0000 1.000000 6,997,275.06 -6,997,275.06 0.00
07/29/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -13,999,020.0000 1.000000 13,999,020.00 -13,999,020.00 0.00
08/02/2021 912828S76 MATURED PAR VALUE OF U S TREASURY NT 1.125% 7/31/21 43,000,000 PAR
VALUE AT 100 %
-43,000,000.0000 1.000000 43,000,000.00 -43,267,968.77 -267,968.77
08/02/2021 9128287F1 MATURED PAR VALUE OF U S TREASURY NT 1.750% 7/31/21 2,000,000 PAR
VALUE AT 100 %
-2,000,000.0000 1.000000 2,000,000.00 -2,014,531.25 -14,531.25
08/02/2021 912828WY2 MATURED PAR VALUE OF U S TREASURY NT 2.250% 7/31/21 8,000,000 PAR
VALUE AT 100 %
-8,000,000.0000 1.000000 8,000,000.00 -8,144,296.88 -144,296.88
08/02/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -43,000,000.0000 1.000000 43,000,000.00 -43,000,000.00 0.00
08/02/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -3,060,582.0000 1.000000 3,060,582.00 -3,060,582.00 0.00
08/16/2021 912828RC6 MATURED PAR VALUE OF U S TREASURY NT 2.125% 8/15/21 5,000,000 PAR
VALUE AT 100 %
-5,000,000.0000 1.000000 5,000,000.00 -5,039,453.13 -39,453.13
08/16/2021 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C #786064 2.262% 1/01/28 JULY FHLMC
DUE 8/15/21
-22.8400 0.000000 22.84 -22.28 0.56
08/16/2021 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.855% 8/15/32 -77.6000 14,794.736082 77.60 -77.68 -0.08
08/16/2021 47788EAC2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 3.080% 11/15/22 -143,699.6000 0.000000 143,699.60 -143,688.71 10.89
08/16/2021 58770FAC6 PAID DOWN PAR VALUE OF MERCEDES BENZ AUTO 1.840% 12/15/22 -186,115.1300 0.000000 186,115.13 -186,090.60 24.53
08/16/2021 65479JAD5 PAID DOWN PAR VALUE OF NISSAN AUTO 1.930% 7/15/24 -302,923.0600 0.000000 302,923.06 -302,907.07 15.99
08/16/2021 65479GAD1 PAID DOWN PAR VALUE OF NISSAN AUTO 3.060% 3/15/23 -153,289.3600 0.000000 153,289.36 -153,284.39 4.97
08/16/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,982,694.0000 1.000000 4,982,694.00 -4,982,694.00 0.00
08/16/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -6,460,291.8000 1.000000 6,460,291.80 -6,460,291.80 0.00
08/18/2021 43814UAG4 PAID DOWN PAR VALUE OF HONDA AUTO 3.010% 5/18/22 CMO FINAL
PAYDOWN
-22,876.2400 0.000000 22,876.24 -22,875.74 0.50
08/20/2021 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I #080023 2.125% 12/20/26 JULY GNMA DUE
8/20/21
-151.5500 0.000000 151.55 -154.05 -2.50
08/20/2021 36225CC20 PAID DOWN PAR VALUE OF G N M A I I #080088 2.000% 6/20/27 JULY GNMA DUE
8/20/21
-109.4500 0.000000 109.45 -111.84 -2.39
5 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
08/20/2021 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I #080395 1.875% 4/20/30 JULY GNMA DUE
8/20/21
-113.4500 0.000000 113.45 -112.42 1.03
08/20/2021 36225CN28 PAID DOWN PAR VALUE OF G N M A I I #080408 1.875% 5/20/30 JULY GNMA DUE
8/20/21
-1,285.4300 0.000000 1,285.43 -1,272.37 13.06
08/20/2021 36225DCB8 PAID DOWN PAR VALUE OF G N M A I I #080965 2.250% 7/20/34 JULY GNMA DUE
8/20/21
-609.0500 0.000000 609.05 -608.67 0.38
08/23/2021 43815HAC1 PAID DOWN PAR VALUE OF HONDA AUTO 2.950% 8/22/22 -153,888.2000 0.000000 153,888.20 -153,867.09 21.11
08/25/2021 313385KW5 MATURED PAR VALUE OF F H L B DISC NTS 8/25/21 7,525,000 PAR VALUE AT
100 %
-7,525,000.0000 1.000000 7,523,032.66 -7,523,032.66 0.00
08/25/2021 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -3,754.3200 0.000000 3,754.32 -4,251.77 -497.45
08/25/2021 31371NUC7 PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 JULY FNMA DUE
8/25/21
-921.6900 0.000000 921.69 -974.78 -53.09
08/25/2021 31376KT22 PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 JULY FNMA DUE
8/25/21
-2,526.6700 0.000000 2,526.67 -2,716.17 -189.50
08/25/2021 31403DJZ3 PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 JULY FNMA DUE
8/25/21
-1,439.8500 0.000000 1,439.85 -1,547.84 -107.99
08/25/2021 31403GXF4 PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 JULY FNMA DUE
8/25/21
-3.9900 0.000000 3.99 -4.29 -0.30
08/25/2021 31406PQY8 PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 JULY FNMA DUE
8/25/21
-2,091.7200 0.000000 2,091.72 -2,248.60 -156.88
08/25/2021 31406XWT5 PAID DOWN PAR VALUE OF F N M A #823358 2.035% 2/01/35 JULY FNMA DUE
8/25/21
-410.0000 0.000000 410.00 -406.80 3.20
08/25/2021 31407BXH7 PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 JULY FNMA DUE
8/25/21
-70.9500 0.000000 70.95 -76.27 -5.32
08/25/2021 31410F4V4 PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 JULY FNMA DUE
8/25/21
-4,224.5600 0.000000 4,224.56 -4,541.40 -316.84
08/25/2021 3138EG6F6 PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 JULY FNMA DUE
8/25/21
-187.4100 0.000000 187.41 -198.20 -10.79
08/25/2021 31417YAY3 PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 JULY FNMA DUE
8/25/21
-287.9500 0.000000 287.95 -304.54 -16.59
08/25/2021 31397QRE0 PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -3,461.4300 0.000000 3,461.43 -3,460.35 1.08
08/26/2021 912796D55 MATURED PAR VALUE OF U S TREASURY BILL 8/26/21 13,000,000 PAR VALUE
AT 100 %
-13,000,000.0000 1.000000 12,996,273.41 -12,996,273.41 0.00
08/26/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -3,003,350.9300 1.000000 3,003,350.93 -3,003,350.93 0.00
08/27/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,072,724.1800 1.000000 10,072,724.18 -10,072,724.18 0.00
08/31/2021 912828YC8 MATURED PAR VALUE OF U S TREASURY NT 1.500% 8/31/21 9,000,000 PAR
VALUE AT 100 %
-9,000,000.0000 1.000000 9,000,000.00 -9,084,726.56 -84,726.56
08/31/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,113,845.7200 1.000000 4,113,845.72 -4,113,845.72 0.00
09/10/2021 912828J76 SOLD PAR VALUE OF U S TREASURY NT 1.750% 3/31/22 /BOFA SECURITIES,
INC./FXD INC/5,000,000 PAR VALUE AT 100.9414062 %
-5,000,000.0000 1.009414 5,047,070.31 -4,976,383.94 70,686.37
6 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/14/2021 3135G0S38 SOLD PAR VALUE OF F N M A 2.000% 1/05/22 /MORGAN STANLEY & CO.
LLC/3,000,000 PAR VALUE AT 100.601 %
-3,000,000.0000 1.006010 3,018,030.00 -2,994,570.00 23,460.00
09/14/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -649,977.7200 1.000000 649,977.72 -649,977.72 0.00
09/15/2021 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C #786064 2.262% 1/01/28 AUGUST FHLMC
DUE 9/15/21
-22.9000 0.000000 22.90 -22.34 0.56
09/15/2021 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.823% 8/15/32 -74.3000 0.000000 74.30 -74.38 -0.08
09/15/2021 47788EAC2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 3.080% 11/15/22 -110,835.0700 0.000000 110,835.07 -110,826.67 8.40
09/15/2021 58770FAC6 PAID DOWN PAR VALUE OF MERCEDES BENZ AUTO 1.840% 12/15/22 -199,334.2300 0.000000 199,334.23 -199,307.96 26.27
09/15/2021 65479JAD5 PAID DOWN PAR VALUE OF NISSAN AUTO 1.930% 7/15/24 -288,957.5500 0.000000 288,957.55 -288,942.29 15.26
09/15/2021 65479GAD1 PAID DOWN PAR VALUE OF NISSAN AUTO 3.060% 3/15/23 -150,640.7900 0.000000 150,640.79 -150,635.91 4.88
09/15/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,229,901.9500 1.000000 4,229,901.95 -4,229,901.95 0.00
09/16/2021 912828XW5 SOLD PAR VALUE OF U S TREASURY NT 1.750% 6/30/22 /J.P. MORGAN
SECURITIES LLC/5,000,000 PAR VALUE AT 101.328125 %
-5,000,000.0000 1.013281 5,066,406.25 -4,973,454.25 92,952.00
09/16/2021 912828L24 SOLD PAR VALUE OF U S TREASURY NT 1.875% 8/31/22 /J.P. MORGAN
SECURITIES LLC/3,500,000 PAR VALUE AT 101.72656257 %
-3,500,000.0000 1.017266 3,560,429.69 -3,492,902.35 67,527.34
09/17/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,721,739.7500 1.000000 1,721,739.75 -1,721,739.75 0.00
09/20/2021 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I #080023 2.125% 12/20/26 AUGUST GNMA
DUE 9/20/21
-153.6500 0.000000 153.65 -156.19 -2.54
09/20/2021 36225CC20 PAID DOWN PAR VALUE OF G N M A I I #080088 2.000% 6/20/27 AUGUST GNMA
DUE 9/20/21
-879.7000 0.000000 879.70 -898.94 -19.24
09/20/2021 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I #080395 1.875% 4/20/30 AUGUST GNMA
DUE 9/20/21
-147.6400 0.000000 147.64 -146.30 1.34
09/20/2021 36225CN28 PAID DOWN PAR VALUE OF G N M A I I #080408 1.875% 5/20/30 AUGUST GNMA
DUE 9/20/21
-304.0300 0.000000 304.03 -300.94 3.09
09/20/2021 36225DCB8 PAID DOWN PAR VALUE OF G N M A I I #080965 2.250% 7/20/34 AUGUST GNMA
DUE 9/20/21
-627.2500 0.000000 627.25 -626.86 0.39
09/21/2021 43815HAC1 PAID DOWN PAR VALUE OF HONDA AUTO 2.950% 8/22/22 -145,664.5000 0.000000 145,664.50 -145,644.51 19.99
09/23/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,752,664.0000 1.000000 10,752,664.00 -10,752,664.00 0.00
09/23/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,247,128.6500 1.000000 1,247,128.65 -1,247,128.65 0.00
09/27/2021 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -3,841.5000 0.000000 3,841.50 -4,350.50 -509.00
09/27/2021 31371NUC7 PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 AUGUST FNMA
DUE 9/25/21
-418.1400 0.000000 418.14 -442.22 -24.08
09/27/2021 31376KT22 PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 AUGUST FNMA
DUE 9/25/21
-3,631.2600 0.000000 3,631.26 -3,903.60 -272.34
09/27/2021 31403DJZ3 PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 AUGUST FNMA
DUE 9/25/21
-1,077.3000 0.000000 1,077.30 -1,158.10 -80.80
09/27/2021 31403GXF4 PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 AUGUST FNMA
DUE 9/25/21
-4.0100 0.000000 4.01 -4.31 -0.30
09/27/2021 31406PQY8 PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 AUGUST FNMA
DUE 9/25/21
-1,888.6500 0.000000 1,888.65 -2,030.30 -141.65
7 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/27/2021 31406XWT5 PAID DOWN PAR VALUE OF F N M A #823358 2.035% 2/01/35 AUGUST FNMA
DUE 9/25/21
-564.2400 0.000000 564.24 -559.83 4.41
09/27/2021 31407BXH7 PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 AUGUST FNMA
DUE 9/25/21
-63.0700 0.000000 63.07 -67.80 -4.73
09/27/2021 31410F4V4 PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 AUGUST FNMA
DUE 9/25/21
-2,363.7400 0.000000 2,363.74 -2,541.02 -177.28
09/27/2021 3138EG6F6 PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 AUGUST FNMA
DUE 9/25/21
-116.4600 0.000000 116.46 -123.17 -6.71
09/27/2021 31417YAY3 PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 AUGUST FNMA
DUE 9/25/21
-303.1400 0.000000 303.14 -320.60 -17.46
09/27/2021 31397QRE0 PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -4,348.0800 0.000000 4,348.08 -4,346.72 1.36
09/29/2021 912796D30 SOLD PAR VALUE OF U S TREASURY BILL 2/24/22 /WELLS FARGO
SECURITIES, LLC/1,250,000 PAR VALUE AT 99.986392 %
-1,250,000.0000 0.999864 1,249,714.22 -1,249,714.22 0.00
09/29/2021 912796M22 SOLD PAR VALUE OF U S TREASURY BILL 10/05/21 /WELLS FARGO
SECURITIES, LLC/5,500,000 PAR VALUE AT 99.99994509 %
-5,500,000.0000 0.999999 5,499,304.25 -5,499,304.25 0.00
09/30/2021 912796F61 MATURED PAR VALUE OF U S TREASURY BILL 9/30/21 19,000,000 PAR VALUE
AT 100 %
-19,000,000.0000 1.000000 18,998,765.63 -18,998,765.63 0.00
09/30/2021 912828L57 SOLD PAR VALUE OF U S TREASURY NT 1.750% 9/30/22 /J.P. MORGAN
SECURITIES LLC/6,000,000 PAR VALUE AT 101.6640625 %
-6,000,000.0000 1.016641 6,099,843.75 -5,876,484.38 223,359.37
09/30/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -35,000,000.0000 1.000000 35,000,000.00 -35,000,000.00 0.00
TOTAL DISPOSITIONS -351,384,466.1500 351,735,741.95 -351,989,421.14 -253,679.19
OTHER TRANSACTIONS
07/01/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE
6/30/2021 INTEREST FROM 6/1/21 TO 6/30/21
0.0000 0.000000 126.28 0.00 0.00
07/01/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE
6/30/2021 INTEREST FROM 6/1/21 TO 6/30/21
0.0000 0.000000 111.78 0.00 0.00
07/01/2021 912828ZM5 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.125% 4/30/22 0.0000 0.000000 -2,105.98 0.00 0.00
07/02/2021 912828U65 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.750% 11/30/21 0.0000 0.000000 9,945.36 0.00 0.00
07/06/2021 3135G0S38 INTEREST EARNED ON F N M A 2.000% 1/05/22 $1 PV ON 3000000.0000
SHARES DUE 7/5/2021
0.0000 0.000000 30,000.00 0.00 0.00
07/06/2021 05531FBG7 PAID ACCRUED INTEREST ON PURCHASE OF BB T CORPORATION MTN 3.050%
6/20/22
0.0000 0.000000 -2,711.11 0.00 0.00
07/07/2021 3135G0X24 INTEREST EARNED ON F N M A 1.625% 1/07/25 $1 PV ON 10000000.0000
SHARES DUE 7/7/2021
0.0000 0.000000 81,250.00 0.00 0.00
07/07/2021 3137BFE98 PAID ACCRUED INTEREST ON PURCHASE OF F H L B GTD REMIC 3.171% 10/25/24 0.0000 0.000000 -2,642.50 0.00 0.00
07/08/2021 594918BP8 INTEREST EARNED ON MICROSOFT CORP 1.550% 8/08/21 $1 PV ON 3045000.0000
SHARES DUE 7/8/2021 ACCRUED INTEREST ON 7/8/2021 FULL CALL
0.0000 0.000000 19,665.62 0.00 0.00
07/12/2021 3135G05G4 INTEREST EARNED ON F N M A 0.250% 7/10/23 $1 PV ON 6775000.0000
SHARES DUE 7/10/2021
0.0000 0.000000 8,468.75 0.00 0.00
8 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/13/2021 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 45552.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
07/13/2021 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 45552.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 45,552.00 0.00
07/13/2021 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 45552.0000
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
45,552.0000 0.000000 0.00 0.00 0.00
07/13/2021 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 45552.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
07/14/2021 02665WCJ8 INTEREST EARNED ON AMERICAN HONDA MTN 3.450% 7/14/23 $1 PV ON
845000.0000 SHARES DUE 7/14/2021
0.0000 0.000000 14,576.25 0.00 0.00
07/15/2021 31348SWZ3 INTEREST EARNED ON F H L M C #786064 2.262% 1/01/28 $1 PV ON 2.7300 SHARES
DUE 7/15/2021 MAY FHLMC DUE 7/15/21
0.0000 0.000000 2.73 0.00 0.00
07/15/2021 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.855% 8/15/32 $1 PV ON 12.7900
SHARES DUE 7/15/2021 $0.00321/PV ON 3,982.90 PV DUE 7/15/21
0.0000 0.000000 12.79 0.00 0.00
07/15/2021 44891VAC5 INTEREST EARNED ON HYUNDAI AUTO LEASE 0.330% 6/17/24 $1 PV ON 1104.5400
SHARES DUE 7/15/2021 $0.00027/PV ON 4,155,000.00 PV DUE 7/15/21
0.0000 0.000000 1,104.54 0.00 0.00
07/15/2021 44933LAC7 INTEREST EARNED ON HYUNDAI AUTO REC 0.380% 9/15/25 $1 PV ON 665.0000
SHARES DUE 7/15/2021 $0.00032/PV ON 2,100,000.00 PV DUE 7/15/21
0.0000 0.000000 665.00 0.00 0.00
07/15/2021 4581X0DN5 INTEREST EARNED ON INTER AMER BK M T N 0.625% 7/15/25 $1 PV ON
5050000.0000 SHARES DUE 7/15/2021
0.0000 0.000000 15,781.25 0.00 0.00
07/15/2021 47788UAC6 INTEREST EARNED ON JOHN DEERE OWNER 0.360% 9/15/25 $1 PV ON 690.0000
SHARES DUE 7/15/2021 $0.00030/PV ON 2,300,000.00 PV DUE 7/15/21
0.0000 0.000000 690.00 0.00 0.00
07/15/2021 47787NAC3 INTEREST EARNED ON JOHN DEERE OWNER 0.510% 11/15/24 $1 PV ON 629.0000
SHARES DUE 7/15/2021 $0.00042/PV ON 1,480,000.00 PV DUE 7/15/21
0.0000 0.000000 629.00 0.00 0.00
07/15/2021 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22 $1 PV ON 1377.1300
SHARES DUE 7/15/2021 $0.00257/PV ON 536,545.01 PV DUE 7/15/21
0.0000 0.000000 1,377.13 0.00 0.00
07/15/2021 58769KAD6 INTEREST EARNED ON MERCEDES BENZ AUTO 0.400% 11/15/24 $1 PV ON 589.3300
SHARES DUE 7/15/2021 $0.00018/PV ON 3,315,000.00 PV DUE 7/15/21
0.0000 0.000000 589.33 0.00 0.00
07/15/2021 58770FAC6 INTEREST EARNED ON MERCEDES BENZ AUTO 1.840% 12/15/22 $1 PV ON 3143.3300
SHARES DUE 7/15/2021 $0.00153/PV ON 2,050,000.00 PV DUE 7/15/21
0.0000 0.000000 3,143.33 0.00 0.00
07/15/2021 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON 6730.8700
SHARES DUE 7/15/2021 $0.00161/PV ON 4,185,000.00 PV DUE 7/15/21
0.0000 0.000000 6,730.87 0.00 0.00
07/15/2021 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23 $1 PV ON 2919.6900
SHARES DUE 7/15/2021 $0.00255/PV ON 1,144,976.47 PV DUE 7/15/21
0.0000 0.000000 2,919.69 0.00 0.00
07/15/2021 89237VAB5 INTEREST EARNED ON TOYOTA AUTO RECV 0.440% 10/15/24 $1 PV ON 1085.3300
SHARES DUE 7/15/2021 $0.00037/PV ON 2,960,000.00 PV DUE 7/15/21
0.0000 0.000000 1,085.33 0.00 0.00
07/15/2021 912828WU0 INTEREST EARNED ON U S TREASURY I P S 0.125% 7/15/24 $1 PV ON
11739208.0000 SHARES DUE 7/15/2021
0.0000 0.000000 7,337.01 0.00 0.00
07/15/2021 912828V72 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.875% 1/31/22 0.0000 0.000000 25,638.81 0.00 0.00
07/16/2021 78013XZU5 INTEREST EARNED ON ROYAL BANK OF MTN 2.550% 7/16/24 $1 PV ON
6500000.0000 SHARES DUE 7/16/2021
0.0000 0.000000 82,875.00 0.00 0.00
9 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/16/2021 037833AZ3 PAID ACCRUED INTEREST ON PURCHASE OF APPLE INC 2.500% 2/09/25 0.0000 0.000000 -42,760.69 0.00 0.00
07/19/2021 3135G0T94 INTEREST EARNED ON F N M A DEB 2.375% 1/19/23 $1 PV ON 5000000.0000
SHARES DUE 7/19/2021
0.0000 0.000000 59,375.00 0.00 0.00
07/19/2021 43813KAC6 INTEREST EARNED ON HONDA AUTO 0.370% 10/18/24 $1 PV ON 997.4600
SHARES DUE 7/18/2021 $0.00031/PV ON 3,235,000.00 PV DUE 7/18/21
0.0000 0.000000 997.46 0.00 0.00
07/19/2021 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22 $1 PV ON 244.0700
SHARES DUE 7/18/2021 $0.00251/PV ON 97,302.18 PV DUE 7/18/21
0.0000 0.000000 244.07 0.00 0.00
07/19/2021 4581X0CW6 INTEREST EARNED ON INTER AMER DEV BK 2.125% 1/18/22 $1 PV ON
3000000.0000 SHARES DUE 7/18/2021
0.0000 0.000000 31,875.00 0.00 0.00
07/19/2021 89114QC48 INTEREST EARNED ON TORONTO MTN 3.500% 7/19/23 $1 PV ON 5000000.0000
SHARES DUE 7/19/2021
0.0000 0.000000 87,500.00 0.00 0.00
07/20/2021 36225CAZ9 INTEREST EARNED ON G N M A I I #080023 2.125% 12/20/26 $1 PV ON 17.8800
SHARES DUE 7/20/2021 JUNE GNMA DUE 7/20/21
0.0000 0.000000 17.88 0.00 0.00
07/20/2021 36225CC20 INTEREST EARNED ON G N M A I I #080088 2.875% 6/20/27 $1 PV ON 18.7700
SHARES DUE 7/20/2021 JUNE GNMA DUE 7/20/21
0.0000 0.000000 18.77 0.00 0.00
07/20/2021 36225CNM4 INTEREST EARNED ON G N M A I I #080395 2.875% 4/20/30 $1 PV ON 10.0400
SHARES DUE 7/20/2021 JUNE GNMA DUE 7/20/21
0.0000 0.000000 10.04 0.00 0.00
07/20/2021 36225CN28 INTEREST EARNED ON G N M A I I #080408 2.875% 5/20/30 $1 PV ON 79.6000
SHARES DUE 7/20/2021 JUNE GNMA DUE 7/20/21
0.0000 0.000000 79.60 0.00 0.00
07/20/2021 36225DCB8 INTEREST EARNED ON G N M A I I #080965 2.250% 7/20/34 $1 PV ON 51.6300
SHARES DUE 7/20/2021 JUNE GNMA DUE 7/20/21
0.0000 0.000000 51.63 0.00 0.00
07/20/2021 45950KCJ7 INTEREST EARNED ON INTL FINANCE CORP 1.125% 7/20/21 $1 PV ON 2500000.0000
SHARES DUE 7/20/2021
0.0000 0.000000 14,075.00 0.00 0.00
07/21/2021 3137EAEU9 INTEREST EARNED ON F H L M C M T N 0.375% 7/21/25 $1 PV ON 5030000.0000
SHARES DUE 7/21/2021
0.0000 0.000000 9,431.25 0.00 0.00
07/21/2021 43813GAC5 INTEREST EARNED ON HONDA AUTO 0.270% 4/21/25 $1 PV ON 361.1300
SHARES DUE 7/21/2021 $0.00023/PV ON 1,605,000.00 PV DUE 7/21/21
0.0000 0.000000 361.13 0.00 0.00
07/21/2021 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22 $1 PV ON 1620.4300
SHARES DUE 7/21/2021 $0.00246/PV ON 659,157.51 PV DUE 7/21/21
0.0000 0.000000 1,620.43 0.00 0.00
07/21/2021 90331HPL1 INTEREST EARNED ON US BANK NA MTN 2.050% 1/21/25 $1 PV ON 7270000.0000
SHARES DUE 7/21/2021
0.0000 0.000000 74,517.50 0.00 0.00
07/22/2021 912796C49 INTEREST EARNED ON U S TREASURY BILL 7/22/21 $1 PV ON 5000000.0000
SHARES DUE 7/22/2021 5,000,000 PAR VALUE AT 100 %
0.0000 0.000000 2,338.19 0.00 0.00
07/23/2021 46647PAU0 INTEREST EARNED ON JPMORGAN CHASE CO 3.797% 7/23/24 $1 PV ON
2500000.0000 SHARES DUE 7/23/2021
0.0000 0.000000 47,462.50 0.00 0.00
07/23/2021 90331HNL3 INTEREST EARNED ON US BANK NA MTN 2.850% 1/23/23 $1 PV ON 2000000.0000
SHARES DUE 7/23/2021
0.0000 0.000000 28,500.00 0.00 0.00
07/26/2021 03215PFN4 INTEREST EARNED ON AMRESCO 1.38193% 6/25/29 $1 PV ON 137.0700
SHARES DUE 7/25/2021 $0.00115/PV ON 119,021.64 PV DUE 7/25/21
0.0000 0.000000 137.07 0.00 0.00
07/26/2021 808513AT2 INTEREST EARNED ON CHARLES SCHWAB CORP 2.650% 1/25/23 $1 PV ON
6750000.0000 SHARES DUE 7/25/2021
0.0000 0.000000 89,437.50 0.00 0.00
10 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/26/2021 3133EKWV4 INTEREST EARNED ON F F C B DEB 1.850% 7/26/24 $1 PV ON 5000000.0000
SHARES DUE 7/26/2021
0.0000 0.000000 46,250.00 0.00 0.00
07/26/2021 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43 $1 PV ON 2822.2100
SHARES DUE 7/25/2021 $0.00542/PV ON 521,023.30 PV DUE 7/25/21
0.0000 0.000000 2,822.21 0.00 0.00
07/26/2021 31371NUC7 INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON 33.2100 SHARES
DUE 7/25/2021 JUNE FNMA DUE 7/25/21
0.0000 0.000000 33.21 0.00 0.00
07/26/2021 31376KT22 INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON 286.6600
SHARES DUE 7/25/2021 JUNE FNMA DUE 7/25/21
0.0000 0.000000 286.66 0.00 0.00
07/26/2021 31403DJZ3 INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON 256.5300
SHARES DUE 7/25/2021 JUNE FNMA DUE 7/25/21
0.0000 0.000000 256.53 0.00 0.00
07/26/2021 31403GXF4 INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON 3.3800 SHARES
DUE 7/25/2021 JUNE FNMA DUE 7/25/21
0.0000 0.000000 3.38 0.00 0.00
07/26/2021 31406PQY8 INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON 382.9900
SHARES DUE 7/25/2021 JUNE FNMA DUE 7/25/21
0.0000 0.000000 382.99 0.00 0.00
07/26/2021 31406XWT5 INTEREST EARNED ON F N M A #823358 2.035% 2/01/35 $1 PV ON 118.7200
SHARES DUE 7/25/2021 JUNE FNMA DUE 7/25/21
0.0000 0.000000 118.72 0.00 0.00
07/26/2021 31407BXH7 INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON 51.3400 SHARES
DUE 7/25/2021 JUNE FNMA DUE 7/25/21
0.0000 0.000000 51.34 0.00 0.00
07/26/2021 31410F4V4 INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON 457.6100
SHARES DUE 7/25/2021 JUNE FNMA DUE 7/25/21
0.0000 0.000000 457.61 0.00 0.00
07/26/2021 3138EG6F6 INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON 21.7900
SHARES DUE 7/25/2021 JUNE FNMA DUE 7/25/21
0.0000 0.000000 21.79 0.00 0.00
07/26/2021 31417YAY3 INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON 37.1800
SHARES DUE 7/25/2021 JUNE FNMA DUE 7/25/21
0.0000 0.000000 37.18 0.00 0.00
07/26/2021 31397QRE0 INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 71.8000
SHARES DUE 7/25/2021 $0.00064/PV ON 111,677.65 PV DUE 7/25/21
0.0000 0.000000 71.80 0.00 0.00
07/26/2021 459058FY4 INTEREST EARNED ON INTL BK 2.000% 1/26/22 $1 PV ON 10000000.0000
SHARES DUE 7/26/2021
0.0000 0.000000 100,000.00 0.00 0.00
07/26/2021 62479LUS2 INTEREST EARNED ON MUFG BK LTD N Y BRH C P 7/26/21 $1 PV ON
12000000.0000 SHARES DUE 7/26/2021 12,000,000 PAR VALUE AT 100 %
0.0000 0.000000 3,000.00 0.00 0.00
07/26/2021 78445JAA5 INTEREST EARNED ON S L M A 1.69437% 4/25/23 $1 PV ON 42.8600 SHARES
DUE 7/25/2021 $0.00424/PV ON 10,118.65 PV DUE 7/25/21
0.0000 0.000000 42.86 0.00 0.00
07/28/2021 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 48360.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
07/28/2021 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 48360.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 48,360.00 0.00
07/28/2021 61747WAL3 INTEREST EARNED ON MORGAN STANLEY 5.500% 7/28/21 $1 PV ON
2800000.0000 SHARES DUE 7/28/2021
0.0000 0.000000 77,000.00 0.00 0.00
07/28/2021 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 48360.0000
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
48,360.0000 0.000000 0.00 0.00 0.00
11 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/28/2021 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 48360.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
07/29/2021 06406RAE7 INTEREST EARNED ON BANK OF NY MTN 2.950% 1/29/23 $1 PV ON 2500000.0000
SHARES DUE 7/29/2021
0.0000 0.000000 36,875.00 0.00 0.00
07/29/2021 912796C56 INTEREST EARNED ON U S TREASURY BILL 7/29/21 $1 PV ON 7000000.0000
SHARES DUE 7/29/2021 7,000,000 PAR VALUE AT 100 %
0.0000 0.000000 2,724.94 0.00 0.00
08/02/2021 CASH DISBURSEMENT PAID TO BANC OF CALIFORNIA OUTGOING DOMESTIC WIRE
PER DIR DTD 7/29/2021
0.0000 0.000000 -43,000,000.00 0.00 0.00
08/02/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE
7/31/2021 INTEREST FROM 7/1/21 TO 7/31/21
0.0000 0.000000 60.19 0.00 0.00
08/02/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE
7/31/2021 INTEREST FROM 7/1/21 TO 7/31/21
0.0000 0.000000 115.21 0.00 0.00
08/02/2021 91282CBG5 INTEREST EARNED ON U S TREASURY NT 0.125% 1/31/23 $1 PV ON
10000000.0000 SHARES DUE 7/31/2021
0.0000 0.000000 6,250.00 0.00 0.00
08/02/2021 91282CBH3 INTEREST EARNED ON U S TREASURY NT 0.375% 1/31/26 $1 PV ON
18000000.0000 SHARES DUE 7/31/2021
0.0000 0.000000 33,750.00 0.00 0.00
08/02/2021 912828S76 INTEREST EARNED ON U S TREASURY NT 1.125% 7/31/21 $1 PV ON
43000000.0000 SHARES DUE 7/31/2021
0.0000 0.000000 241,875.00 0.00 0.00
08/02/2021 912828Z60 INTEREST EARNED ON U S TREASURY NT 1.375% 1/31/22 $1 PV ON
20000000.0000 SHARES DUE 7/31/2021
0.0000 0.000000 137,500.00 0.00 0.00
08/02/2021 912828H86 INTEREST EARNED ON U S TREASURY NT 1.500% 1/31/22 $1 PV ON 7500000.0000
SHARES DUE 7/31/2021
0.0000 0.000000 56,250.00 0.00 0.00
08/02/2021 9128287F1 INTEREST EARNED ON U S TREASURY NT 1.750% 7/31/21 $1 PV ON 2000000.0000
SHARES DUE 7/31/2021
0.0000 0.000000 17,500.00 0.00 0.00
08/02/2021 912828V80 INTEREST EARNED ON U S TREASURY NT 2.250% 1/31/24 $1 PV ON 7500000.0000
SHARES DUE 7/31/2021
0.0000 0.000000 84,375.00 0.00 0.00
08/02/2021 912828WY2 INTEREST EARNED ON U S TREASURY NT 2.250% 7/31/21 $1 PV ON 8000000.0000
SHARES DUE 7/31/2021
0.0000 0.000000 90,000.00 0.00 0.00
08/05/2021 3135G0V34 INTEREST EARNED ON F N M A 2.500% 2/05/24 $1 PV ON 5000000.0000
SHARES DUE 8/5/2021
0.0000 0.000000 62,500.00 0.00 0.00
08/09/2021 037833AZ3 INTEREST EARNED ON APPLE INC 2.500% 2/09/25 $1 PV ON 3922000.0000
SHARES DUE 8/9/2021
0.0000 0.000000 49,025.00 0.00 0.00
08/09/2021 06406RAA5 INTEREST EARNED ON BANK OF NY MTN 2.600% 2/07/22 $1 PV ON 2500000.0000
SHARES DUE 8/7/2021
0.0000 0.000000 32,500.00 0.00 0.00
08/12/2021 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 52520.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
08/12/2021 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 52520.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 52,520.00 0.00
08/12/2021 3137EAEP0 INTEREST EARNED ON F H L M C 1.500% 2/12/25 $1 PV ON 12335000.0000
SHARES DUE 8/12/2021
0.0000 0.000000 92,512.50 0.00 0.00
12 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
08/12/2021 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 52520.0000
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
52,520.0000 0.000000 0.00 0.00 0.00
08/12/2021 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 52520.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
08/13/2021 06051GHY8 INTEREST EARNED ON BANK OF AMERICAN MTN 2.015% 2/13/26 $1 PV ON
2500000.0000 SHARES DUE 8/13/2021
0.0000 0.000000 25,187.50 0.00 0.00
08/16/2021 31348SWZ3 INTEREST EARNED ON F H L M C #786064 2.262% 1/01/28 $1 PV ON 2.7100 SHARES
DUE 8/15/2021 JUNE FHLMC DUE 8/15/21
0.0000 0.000000 2.71 0.00 0.00
08/16/2021 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.855% 8/15/32 $1 PV ON 12.5300
SHARES DUE 8/15/2021 $0.00321/PV ON 3,907.65 PV DUE 8/15/21
0.0000 0.000000 12.53 0.00 0.00
08/16/2021 44934KAC8 INTEREST EARNED ON HTUNDAI AUTO REC TR 0.380% 1/15/26 $1 PV ON 1083.8400
SHARES DUE 8/15/2021 $0.00018/PV ON 6,040,000.00 PV DUE 8/15/21
0.0000 0.000000 1,083.84 0.00 0.00
08/16/2021 44891VAC5 INTEREST EARNED ON HYUNDAI AUTO LEASE 0.330% 6/17/24 $1 PV ON 1142.6300
SHARES DUE 8/15/2021 $0.00027/PV ON 4,155,000.00 PV DUE 8/15/21
0.0000 0.000000 1,142.63 0.00 0.00
08/16/2021 44933LAC7 INTEREST EARNED ON HYUNDAI AUTO REC 0.380% 9/15/25 $1 PV ON 665.0000
SHARES DUE 8/15/2021 $0.00032/PV ON 2,100,000.00 PV DUE 8/15/21
0.0000 0.000000 665.00 0.00 0.00
08/16/2021 47788UAC6 INTEREST EARNED ON JOHN DEERE OWNER 0.360% 9/15/25 $1 PV ON 690.0000
SHARES DUE 8/15/2021 $0.00030/PV ON 2,300,000.00 PV DUE 8/15/21
0.0000 0.000000 690.00 0.00 0.00
08/16/2021 47787NAC3 INTEREST EARNED ON JOHN DEERE OWNER 0.510% 11/15/24 $1 PV ON 629.0000
SHARES DUE 8/15/2021 $0.00042/PV ON 1,480,000.00 PV DUE 8/15/21
0.0000 0.000000 629.00 0.00 0.00
08/16/2021 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22 $1 PV ON 1118.0900
SHARES DUE 8/15/2021 $0.00257/PV ON 435,620.08 PV DUE 8/15/21
0.0000 0.000000 1,118.09 0.00 0.00
08/16/2021 58769KAD6 INTEREST EARNED ON MERCEDES BENZ AUTO 0.400% 11/15/24 $1 PV ON 1105.0000
SHARES DUE 8/15/2021 $0.00033/PV ON 3,315,000.00 PV DUE 8/15/21
0.0000 0.000000 1,105.00 0.00 0.00
08/16/2021 58770FAC6 INTEREST EARNED ON MERCEDES BENZ AUTO 1.840% 12/15/22 $1 PV ON 2943.3700
SHARES DUE 8/15/2021 $0.00153/PV ON 1,919,585.70 PV DUE 8/15/21
0.0000 0.000000 2,943.37 0.00 0.00
08/16/2021 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON 6540.8000
SHARES DUE 8/15/2021 $0.00161/PV ON 4,066,821.42 PV DUE 8/15/21
0.0000 0.000000 6,540.80 0.00 0.00
08/16/2021 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23 $1 PV ON 2505.9000
SHARES DUE 8/15/2021 $0.00255/PV ON 982,705.58 PV DUE 8/15/21
0.0000 0.000000 2,505.90 0.00 0.00
08/16/2021 89237VAB5 INTEREST EARNED ON TOYOTA AUTO RECV 0.440% 10/15/24 $1 PV ON 1085.3300
SHARES DUE 8/15/2021 $0.00037/PV ON 2,960,000.00 PV DUE 8/15/21
0.0000 0.000000 1,085.33 0.00 0.00
08/16/2021 912828RC6 INTEREST EARNED ON U S TREASURY NT 2.125% 8/15/21 $1 PV ON 5000000.0000
SHARES DUE 8/15/2021
0.0000 0.000000 53,125.00 0.00 0.00
08/16/2021 06367WB85 PAID ACCRUED INTEREST ON PURCHASE OF BANK OF MONTREAL MTN 1.850%
5/01/25
0.0000 0.000000 -37,770.83 0.00 0.00
08/16/2021 912828H86 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.500% 1/31/22 0.0000 0.000000 -3,260.87 0.00 0.00
08/17/2021 69353RFB9 INTEREST EARNED ON PNC BANK NA MTN 2.625% 2/17/22 $1 PV ON 1000000.0000
SHARES DUE 8/17/2021
0.0000 0.000000 13,125.00 0.00 0.00
08/18/2021 43813KAC6 INTEREST EARNED ON HONDA AUTO 0.370% 10/18/24 $1 PV ON 997.4600
SHARES DUE 8/18/2021 $0.00031/PV ON 3,235,000.00 PV DUE 8/18/21
0.0000 0.000000 997.46 0.00 0.00
13 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
08/18/2021 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22 $1 PV ON 57.3800
SHARES DUE 8/18/2021 $0.00251/PV ON 22,876.24 PV DUE 8/18/21
0.0000 0.000000 57.38 0.00 0.00
08/20/2021 36225CAZ9 INTEREST EARNED ON G N M A I I #080023 2.125% 12/20/26 $1 PV ON 17.4300
SHARES DUE 8/20/2021 JULY GNMA DUE 8/20/21
0.0000 0.000000 17.43 0.00 0.00
08/20/2021 36225CC20 INTEREST EARNED ON G N M A I I #080088 2.000% 6/20/27 $1 PV ON 12.8800
SHARES DUE 8/20/2021 JULY GNMA DUE 8/20/21
0.0000 0.000000 12.88 0.00 0.00
08/20/2021 36225CNM4 INTEREST EARNED ON G N M A I I #080395 1.875% 4/20/30 $1 PV ON 6.3300 SHARES
DUE 8/20/2021 JULY GNMA DUE 8/20/21
0.0000 0.000000 6.33 0.00 0.00
08/20/2021 36225CN28 INTEREST EARNED ON G N M A I I #080408 1.875% 5/20/30 $1 PV ON 51.0300
SHARES DUE 8/20/2021 JULY GNMA DUE 8/20/21
0.0000 0.000000 51.03 0.00 0.00
08/20/2021 36225DCB8 INTEREST EARNED ON G N M A I I #080965 2.250% 7/20/34 $1 PV ON 51.3000
SHARES DUE 8/20/2021 JULY GNMA DUE 8/20/21
0.0000 0.000000 51.30 0.00 0.00
08/23/2021 43813GAC5 INTEREST EARNED ON HONDA AUTO 0.270% 4/21/25 $1 PV ON 361.1300
SHARES DUE 8/21/2021 $0.00023/PV ON 1,605,000.00 PV DUE 8/21/21
0.0000 0.000000 361.13 0.00 0.00
08/23/2021 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22 $1 PV ON 1224.6500
SHARES DUE 8/21/2021 $0.00246/PV ON 498,162.14 PV DUE 8/21/21
0.0000 0.000000 1,224.65 0.00 0.00
08/25/2021 03215PFN4 INTEREST EARNED ON AMRESCO 3.91711% 6/25/29 $1 PV ON 388.5200
SHARES DUE 8/25/2021 $0.00326/PV ON 119,021.64 PV DUE 8/25/21
0.0000 0.000000 388.52 0.00 0.00
08/25/2021 313385KW5 INTEREST EARNED ON F H L B DISC NTS 8/25/21 $1 PV ON 7525000.0000
SHARES DUE 8/25/2021 7,525,000 PAR VALUE AT 100 %
0.0000 0.000000 1,967.34 0.00 0.00
08/25/2021 3137BFE98 INTEREST EARNED ON F H L B GTD REMIC 3.171% 10/25/24 $1 PV ON 13212.5000
SHARES DUE 8/25/2021 $0.00264/PV ON 5,000,000.00 PV DUE 8/25/21
0.0000 0.000000 13,212.50 0.00 0.00
08/25/2021 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43 $1 PV ON 2750.7900
SHARES DUE 8/25/2021 $0.00542/PV ON 507,838.31 PV DUE 8/25/21
0.0000 0.000000 2,750.79 0.00 0.00
08/25/2021 3135G05X7 INTEREST EARNED ON F N M A 0.375% 8/25/25 $1 PV ON 7945000.0000
SHARES DUE 8/25/2021
0.0000 0.000000 14,896.88 0.00 0.00
08/25/2021 31371NUC7 INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON 32.7900 SHARES
DUE 8/25/2021 JULY FNMA DUE 8/25/21
0.0000 0.000000 32.79 0.00 0.00
08/25/2021 31376KT22 INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON 276.8500
SHARES DUE 8/25/2021 JULY FNMA DUE 8/25/21
0.0000 0.000000 276.85 0.00 0.00
08/25/2021 31403DJZ3 INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON 250.0800
SHARES DUE 8/25/2021 JULY FNMA DUE 8/25/21
0.0000 0.000000 250.08 0.00 0.00
08/25/2021 31403GXF4 INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON 3.3700 SHARES
DUE 8/25/2021 JULY FNMA DUE 8/25/21
0.0000 0.000000 3.37 0.00 0.00
08/25/2021 31406PQY8 INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON 373.8100
SHARES DUE 8/25/2021 JULY FNMA DUE 8/25/21
0.0000 0.000000 373.81 0.00 0.00
08/25/2021 31406XWT5 INTEREST EARNED ON F N M A #823358 2.035% 2/01/35 $1 PV ON 117.7600
SHARES DUE 8/25/2021 JULY FNMA DUE 8/25/21
0.0000 0.000000 117.76 0.00 0.00
08/25/2021 31407BXH7 INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON 49.6700 SHARES
DUE 8/25/2021 JULY FNMA DUE 8/25/21
0.0000 0.000000 49.67 0.00 0.00
14 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
08/25/2021 31410F4V4 INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON 442.1500
SHARES DUE 8/25/2021 JULY FNMA DUE 8/25/21
0.0000 0.000000 442.15 0.00 0.00
08/25/2021 3138EG6F6 INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON 21.2200
SHARES DUE 8/25/2021 JULY FNMA DUE 8/25/21
0.0000 0.000000 21.22 0.00 0.00
08/25/2021 31417YAY3 INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON 36.2400
SHARES DUE 8/25/2021 JULY FNMA DUE 8/25/21
0.0000 0.000000 36.24 0.00 0.00
08/25/2021 31397QRE0 INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 69.8000
SHARES DUE 8/25/2021 $0.00064/PV ON 108,887.66 PV DUE 8/25/21
0.0000 0.000000 69.80 0.00 0.00
08/26/2021 14913Q2T5 INTEREST EARNED ON CATERPILLAR FINL MTN 2.950% 2/26/22 $1 PV ON
2000000.0000 SHARES DUE 8/26/2021
0.0000 0.000000 29,500.00 0.00 0.00
08/26/2021 912796D55 INTEREST EARNED ON U S TREASURY BILL 8/26/21 $1 PV ON 13000000.0000
SHARES DUE 8/26/2021 13,000,000 PAR VALUE AT 100 %
0.0000 0.000000 3,726.59 0.00 0.00
08/26/2021 86959RQE3 PAID ACCRUED INTEREST ON PURCHASE OF SVENSKA C D 0.230% 5/10/22 0.0000 0.000000 -2,070.00 0.00 0.00
08/27/2021 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 56472.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
08/27/2021 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 56472.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 56,472.00 0.00
08/27/2021 912828H86 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.500% 1/31/22 0.0000 0.000000 -11,005.43 0.00 0.00
08/27/2021 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 56472.0000
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
56,472.0000 0.000000 0.00 0.00 0.00
08/27/2021 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 56472.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
08/31/2021 912828YC8 INTEREST EARNED ON U S TREASURY NT 1.500% 8/31/21 $1 PV ON 9000000.0000
SHARES DUE 8/31/2021
0.0000 0.000000 67,500.00 0.00 0.00
08/31/2021 912828J43 INTEREST EARNED ON U S TREASURY NT 1.750% 2/28/22 $1 PV ON 7500000.0000
SHARES DUE 8/31/2021
0.0000 0.000000 65,625.00 0.00 0.00
08/31/2021 912828L24 INTEREST EARNED ON U S TREASURY NT 1.875% 8/31/22 $1 PV ON 6000000.0000
SHARES DUE 8/31/2021
0.0000 0.000000 56,250.00 0.00 0.00
08/31/2021 912828W48 INTEREST EARNED ON U S TREASURY NT 2.125% 2/29/24 $1 PV ON
10000000.0000 SHARES DUE 8/31/2021
0.0000 0.000000 106,250.00 0.00 0.00
09/01/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE
8/31/2021 INTEREST FROM 8/1/21 TO 8/31/21
0.0000 0.000000 166.41 0.00 0.00
09/01/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE
8/31/2021 INTEREST FROM 8/1/21 TO 8/31/21
0.0000 0.000000 120.05 0.00 0.00
09/07/2021 06051GHF9 INTEREST EARNED ON BANK OF AMERICA 3.550% 3/05/24 $1 PV ON 6675000.0000
SHARES DUE 9/5/2021
0.0000 0.000000 118,481.25 0.00 0.00
09/08/2021 313383YJ4 INTEREST EARNED ON F H L B DEB 3.375% 9/08/23 $1 PV ON 10000000.0000
SHARES DUE 9/8/2021
0.0000 0.000000 168,750.00 0.00 0.00
09/10/2021 912828J76 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.750% 3/31/22 0.0000 0.000000 38,968.58 0.00 0.00
09/13/2021 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 30264.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
15 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/13/2021 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 30264.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 30,264.00 0.00
09/13/2021 00440EAP2 INTEREST EARNED ON CHUBB INA HLDGS INC 2.700% 3/13/23 $1 PV ON
2000000.0000 SHARES DUE 9/13/2021
0.0000 0.000000 27,000.00 0.00 0.00
09/13/2021 3130A2UW4 INTEREST EARNED ON F H L B DEB 2.875% 9/13/24 $1 PV ON 2500000.0000
SHARES DUE 9/13/2021
0.0000 0.000000 35,937.50 0.00 0.00
09/13/2021 46647PBH8 INTEREST EARNED ON JPMORGAN CHASE CO 2.005% 3/13/26 $1 PV ON
3500000.0000 SHARES DUE 9/13/2021
0.0000 0.000000 35,087.50 0.00 0.00
09/13/2021 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 30264.0000
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
30,264.0000 0.000000 0.00 0.00 0.00
09/13/2021 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 30264.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
09/14/2021 3130A4CH3 INTEREST EARNED ON F H L B DEB 2.375% 3/14/25 $1 PV ON 5225000.0000
SHARES DUE 9/14/2021
0.0000 0.000000 62,046.88 0.00 0.00
09/14/2021 4581X0CZ9 INTEREST EARNED ON INTER AMER DEV BK 1.750% 9/14/22 $1 PV ON
6500000.0000 SHARES DUE 9/14/2021
0.0000 0.000000 56,875.00 0.00 0.00
09/14/2021 3135G0S38 RECEIVED ACCRUED INTEREST ON SALE OF F N M A 2.000% 1/05/22 0.0000 0.000000 11,500.00 0.00 0.00
09/15/2021 00440EAS6 INTEREST EARNED ON ACE INA HOLDING 3.150% 3/15/25 $1 PV ON 2000000.0000
SHARES DUE 9/15/2021
0.0000 0.000000 31,500.00 0.00 0.00
09/15/2021 084670BR8 INTEREST EARNED ON BERKSHIRE HATHAWAY 2.750% 3/15/23 $1 PV ON
2500000.0000 SHARES DUE 9/15/2021
0.0000 0.000000 34,375.00 0.00 0.00
09/15/2021 31348SWZ3 INTEREST EARNED ON F H L M C #786064 2.262% 1/01/28 $1 PV ON 2.6600 SHARES
DUE 9/15/2021 JULY FHLMC DUE 9/15/21
0.0000 0.000000 2.66 0.00 0.00
09/15/2021 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.823% 8/15/32 $1 PV ON 12.2000
SHARES DUE 9/15/2021 $0.00319/PV ON 3,830.05 PV DUE 9/15/21
0.0000 0.000000 12.20 0.00 0.00
09/15/2021 44934KAC8 INTEREST EARNED ON HTUNDAI AUTO REC TR 0.380% 1/15/26 $1 PV ON 1912.6700
SHARES DUE 9/15/2021 $0.00032/PV ON 6,040,000.00 PV DUE 9/15/21
0.0000 0.000000 1,912.67 0.00 0.00
09/15/2021 44891VAC5 INTEREST EARNED ON HYUNDAI AUTO LEASE 0.330% 6/17/24 $1 PV ON 1142.6300
SHARES DUE 9/15/2021 $0.00027/PV ON 4,155,000.00 PV DUE 9/15/21
0.0000 0.000000 1,142.63 0.00 0.00
09/15/2021 44933LAC7 INTEREST EARNED ON HYUNDAI AUTO REC 0.380% 9/15/25 $1 PV ON 665.0000
SHARES DUE 9/15/2021 $0.00032/PV ON 2,100,000.00 PV DUE 9/15/21
0.0000 0.000000 665.00 0.00 0.00
09/15/2021 47789QAC4 INTEREST EARNED ON JOHN DEERE OWN 0.936% 3/16/26 $1 PV ON 2199.6000
SHARES DUE 9/15/2021 $0.00078/PV ON 2,820,000.00 PV DUE 9/15/21
0.0000 0.000000 2,199.60 0.00 0.00
09/15/2021 47788UAC6 INTEREST EARNED ON JOHN DEERE OWNER 0.360% 9/15/25 $1 PV ON 690.0000
SHARES DUE 9/15/2021 $0.00030/PV ON 2,300,000.00 PV DUE 9/15/21
0.0000 0.000000 690.00 0.00 0.00
09/15/2021 47787NAC3 INTEREST EARNED ON JOHN DEERE OWNER 0.510% 11/15/24 $1 PV ON 629.0000
SHARES DUE 9/15/2021 $0.00042/PV ON 1,480,000.00 PV DUE 9/15/21
0.0000 0.000000 629.00 0.00 0.00
09/15/2021 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22 $1 PV ON 749.2600
SHARES DUE 9/15/2021 $0.00257/PV ON 291,920.48 PV DUE 9/15/21
0.0000 0.000000 749.26 0.00 0.00
09/15/2021 58769KAD6 INTEREST EARNED ON MERCEDES BENZ AUTO 0.400% 11/15/24 $1 PV ON 1105.0000
SHARES DUE 9/15/2021 $0.00033/PV ON 3,315,000.00 PV DUE 9/15/21
0.0000 0.000000 1,105.00 0.00 0.00
16 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/15/2021 58770FAC6 INTEREST EARNED ON MERCEDES BENZ AUTO 1.840% 12/15/22 $1 PV ON 2657.9900
SHARES DUE 9/15/2021 $0.00153/PV ON 1,733,470.57 PV DUE 9/15/21
0.0000 0.000000 2,657.99 0.00 0.00
09/15/2021 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON 6053.6000
SHARES DUE 9/15/2021 $0.00161/PV ON 3,763,898.36 PV DUE 9/15/21
0.0000 0.000000 6,053.60 0.00 0.00
09/15/2021 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23 $1 PV ON 2115.0100
SHARES DUE 9/15/2021 $0.00255/PV ON 829,416.22 PV DUE 9/15/21
0.0000 0.000000 2,115.01 0.00 0.00
09/15/2021 89237VAB5 INTEREST EARNED ON TOYOTA AUTO RECV 0.440% 10/15/24 $1 PV ON 1085.3300
SHARES DUE 9/15/2021 $0.00037/PV ON 2,960,000.00 PV DUE 9/15/21
0.0000 0.000000 1,085.33 0.00 0.00
09/15/2021 9128286H8 INTEREST EARNED ON U S TREASURY NT 2.375% 3/15/22 $1 PV ON 7500000.0000
SHARES DUE 9/15/2021
0.0000 0.000000 89,062.50 0.00 0.00
09/16/2021 912828XW5 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.750% 6/30/22 0.0000 0.000000 18,546.20 0.00 0.00
09/16/2021 912828L24 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.875% 8/31/22 0.0000 0.000000 2,900.55 0.00 0.00
09/20/2021 09247XAL5 INTEREST EARNED ON BLACKROCK INC 3.500% 3/18/24 $1 PV ON 1000000.0000
SHARES DUE 9/18/2021
0.0000 0.000000 17,500.00 0.00 0.00
09/20/2021 36225CAZ9 INTEREST EARNED ON G N M A I I #080023 2.125% 12/20/26 $1 PV ON 17.1600
SHARES DUE 9/20/2021 AUGUST GNMA DUE 9/20/21
0.0000 0.000000 17.16 0.00 0.00
09/20/2021 36225CC20 INTEREST EARNED ON G N M A I I #080088 2.000% 6/20/27 $1 PV ON 12.7000
SHARES DUE 9/20/2021 AUGUST GNMA DUE 9/20/21
0.0000 0.000000 12.70 0.00 0.00
09/20/2021 36225CNM4 INTEREST EARNED ON G N M A I I #080395 1.875% 4/20/30 $1 PV ON 6.1500 SHARES
DUE 9/20/2021 AUGUST GNMA DUE 9/20/21
0.0000 0.000000 6.15 0.00 0.00
09/20/2021 36225CN28 INTEREST EARNED ON G N M A I I #080408 1.875% 5/20/30 $1 PV ON 49.0200
SHARES DUE 9/20/2021 AUGUST GNMA DUE 9/20/21
0.0000 0.000000 49.02 0.00 0.00
09/20/2021 36225DCB8 INTEREST EARNED ON G N M A I I #080965 2.250% 7/20/34 $1 PV ON 50.1600
SHARES DUE 9/20/2021 AUGUST GNMA DUE 9/20/21
0.0000 0.000000 50.16 0.00 0.00
09/20/2021 43813KAC6 INTEREST EARNED ON HONDA AUTO 0.370% 10/18/24 $1 PV ON 997.4600
SHARES DUE 9/18/2021 $0.00031/PV ON 3,235,000.00 PV DUE 9/18/21
0.0000 0.000000 997.46 0.00 0.00
09/20/2021 808513BN4 INTEREST EARNED ON SCHWAB CHARLES 0.750% 3/18/24 $1 PV ON
2785000.0000 SHARES DUE 9/18/2021
0.0000 0.000000 10,443.75 0.00 0.00
09/20/2021 89239CAC3 INTEREST EARNED ON TOYOTA LEASE OWNER 0.420% 10/21/24 $1 PV ON
1783.6000 SHARES DUE 9/20/2021 $0.00056/PV ON 3,185,000.00 PV DUE 9/20/21
0.0000 0.000000 1,783.60 0.00 0.00
09/21/2021 43813GAC5 INTEREST EARNED ON HONDA AUTO 0.270% 4/21/25 $1 PV ON 361.1300
SHARES DUE 9/21/2021 $0.00023/PV ON 1,605,000.00 PV DUE 9/21/21
0.0000 0.000000 361.13 0.00 0.00
09/21/2021 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22 $1 PV ON 846.3400
SHARES DUE 9/21/2021 $0.00246/PV ON 344,273.94 PV DUE 9/21/21
0.0000 0.000000 846.34 0.00 0.00
09/23/2021 3137EAEX3 INTEREST EARNED ON F H L M C M T N 0.375% 9/23/25 $1 PV ON 7660000.0000
SHARES DUE 9/23/2021
0.0000 0.000000 14,362.50 0.00 0.00
09/27/2021 03215PFN4 INTEREST EARNED ON AMRESCO 1.12684% 6/25/29 $1 PV ON 111.7700
SHARES DUE 9/25/2021 $0.00094/PV ON 119,021.64 PV DUE 9/25/21
0.0000 0.000000 111.77 0.00 0.00
09/27/2021 3137BFE98 INTEREST EARNED ON F H L B GTD REMIC 3.171% 10/25/24 $1 PV ON 13212.5000
SHARES DUE 9/25/2021 $0.00264/PV ON 5,000,000.00 PV DUE 9/25/21
0.0000 0.000000 13,212.50 0.00 0.00
17 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/27/2021 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43 $1 PV ON 2730.4700
SHARES DUE 9/25/2021 $0.00542/PV ON 504,083.99 PV DUE 9/25/21
0.0000 0.000000 2,730.47 0.00 0.00
09/27/2021 31371NUC7 INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON 29.3300 SHARES
DUE 9/25/2021 AUGUST FNMA DUE 9/25/21
0.0000 0.000000 29.33 0.00 0.00
09/27/2021 31376KT22 INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON 266.3300
SHARES DUE 9/25/2021 AUGUST FNMA DUE 9/25/21
0.0000 0.000000 266.33 0.00 0.00
09/27/2021 31403DJZ3 INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON 244.0800
SHARES DUE 9/25/2021 AUGUST FNMA DUE 9/25/21
0.0000 0.000000 244.08 0.00 0.00
09/27/2021 31403GXF4 INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON 3.3500 SHARES
DUE 9/25/2021 AUGUST FNMA DUE 9/25/21
0.0000 0.000000 3.35 0.00 0.00
09/27/2021 31406PQY8 INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON 365.1000
SHARES DUE 9/25/2021 AUGUST FNMA DUE 9/25/21
0.0000 0.000000 365.10 0.00 0.00
09/27/2021 31406XWT5 INTEREST EARNED ON F N M A #823358 2.035% 2/01/35 $1 PV ON 117.0700
SHARES DUE 9/25/2021 AUGUST FNMA DUE 9/25/21
0.0000 0.000000 117.07 0.00 0.00
09/27/2021 31407BXH7 INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON 49.3700 SHARES
DUE 9/25/2021 AUGUST FNMA DUE 9/25/21
0.0000 0.000000 49.37 0.00 0.00
09/27/2021 31410F4V4 INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON 424.5500
SHARES DUE 9/25/2021 AUGUST FNMA DUE 9/25/21
0.0000 0.000000 424.55 0.00 0.00
09/27/2021 3138EG6F6 INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON 20.5200
SHARES DUE 9/25/2021 AUGUST FNMA DUE 9/25/21
0.0000 0.000000 20.52 0.00 0.00
09/27/2021 31417YAY3 INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON 35.1600
SHARES DUE 9/25/2021 AUGUST FNMA DUE 9/25/21
0.0000 0.000000 35.16 0.00 0.00
09/27/2021 31397QRE0 INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 67.1500
SHARES DUE 9/25/2021 $0.00064/PV ON 105,426.23 PV DUE 9/25/21
0.0000 0.000000 67.15 0.00 0.00
09/28/2021 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 28600.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
09/28/2021 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 28600.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 28,600.00 0.00
09/28/2021 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 28600.0000
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
28,600.0000 0.000000 0.00 0.00 0.00
09/28/2021 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 28600.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
09/29/2021 912796D30 INTEREST EARNED ON U S TREASURY BILL 2/24/22 $1 PV ON 1250000.0000
SHARES DUE 9/28/2021 1,250,000 PAR VALUE AT 99.986392 %
0.0000 0.000000 115.68 0.00 0.00
09/29/2021 912796M22 INTEREST EARNED ON U S TREASURY BILL 10/05/21 $1 PV ON 5500000.0000
SHARES DUE 9/28/2021 5,500,000 PAR VALUE AT 99.99994509 %
0.0000 0.000000 692.73 0.00 0.00
09/30/2021 CASH DISBURSEMENT PAID TO BANC OF CALIFORNIA OUTGOING DOMESTIC WIRE
PER DIR DTD 9/29/2021
0.0000 0.000000 -35,000,000.00 0.00 0.00
09/30/2021 912796F61 INTEREST EARNED ON U S TREASURY BILL 9/30/21 $1 PV ON 19000000.0000
SHARES DUE 9/30/2021 19,000,000 PAR VALUE AT 100 %
0.0000 0.000000 1,234.37 0.00 0.00
18 of 19
U.S. Bank
Transaction History
07/01/2021 - 09/30/2021
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/30/2021 91282CAM3 INTEREST EARNED ON U S TREASURY NT 0.250% 9/30/25 $1 PV ON 6500000.0000
SHARES DUE 9/30/2021
0.0000 0.000000 8,125.00 0.00 0.00
09/30/2021 91282CBT7 INTEREST EARNED ON U S TREASURY NT 0.750% 3/31/26 $1 PV ON
10000000.0000 SHARES DUE 9/30/2021
0.0000 0.000000 37,500.00 0.00 0.00
09/30/2021 912828YH7 INTEREST EARNED ON U S TREASURY NT 1.500% 9/30/24 $1 PV ON
14000000.0000 SHARES DUE 9/30/2021
0.0000 0.000000 105,000.00 0.00 0.00
09/30/2021 912828L57 INTEREST EARNED ON U S TREASURY NT 1.750% 9/30/22 $1 PV ON
16000000.0000 SHARES DUE 9/30/2021
0.0000 0.000000 140,000.00 0.00 0.00
09/30/2021 9128284D9 INTEREST EARNED ON U S TREASURY NT 2.500% 3/31/23 $1 PV ON
10000000.0000 SHARES DUE 9/30/2021
0.0000 0.000000 125,000.00 0.00 0.00
09/30/2021 91282CCX7 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.375% 9/15/24 0.0000 0.000000 -466.16 0.00 0.00
09/30/2021 91282CCW9 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.00001% 8/31/26 0.0000 0.000000 -1,864.64 0.00 0.00
TOTAL OTHER TRANSACTIONS 261,768.0000 -74,457,638.70 261,768.00 0.00
19 of 19
September 30, 2021
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 the Appendix section in your investment
measurement service quarterly review report for Important Information and Disclosures.
Callan
Table of Contents
September 30, 2021
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
Callan
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
-0.1%
0.2%
1.2%
-0.8%
0.6%
-0.9%
-2.7%
-4.4%
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
31.9%
31.0%
27.3%
35.0%
30.0%
38.1%
45.0%
47.7%
Source: S&P Dow Jones Indices
S&P Sector Returns, Quarter Ended September 30, 2021
Last Quarter
1.6%
0.0%
-0.3%
-1.7%
2.7%
1.4%
-4.2%
1.3%
-3.5%
0.9%
1.8%
Services
Communication
Discretionary
Consumer
Staples
Consumer Energy Financials Health Care Industrials
Technology
Information Materials Real Estate Utilities
U.S. EQUITY
Returns compress over mounting concerns
–S&P 500 rose 0.6% in 3Q21, and smaller cap growth indices
posted their first negative quarter since the March 2020 low.
–Slowing economic growth, supply chain disruptions, and
inflationary pressure, as well as uncertainty around
monetary policy, decreased investors’ risk appetite.
–In general, high quality topped lower quality in large cap.
–Economically sensitive sectors such as Industrials (-4.2%)
lagged; Financials (+2.7%) benefited.
–Growth outperformed value in large cap, and value
outperformed growth in small cap.
–YTD, small value outperformed small growth by a whopping
2,000 bps (Russell 2000 Value: 22.9% vs. Russell 2000
Growth: 2.8%), a stark reversal from the prior year.
Diversification and rebalancing are best defense
–Few if any pockets of opportunity remain in the equity
markets as valuations have hit or exceeded long-term
averages given the recent market run.
–Investors are grappling with exposures to risk assets: What
to do? Where to go?
–The whipsaw effect over the last two years illustrates the
need to remain committed to a long-term plan that
emphasizes diversification and disciplined rebalancing.
Inflation and equity: not so bad, up to a point
–Investors typically fare OK with expected inflation levels but
are impaired when inflation is unexpectedly higher.
–Pre-GFC, stocks and interest rate movements (proxy for
inflation) were highly correlated until 10-year U.S. Treasury
yields reached 4.5%.
–Post-GFC, stocks and interest rate movements were highly
correlated until 10-year yields reached 3.5%.
–The current 10-Year Treasury yield is 1.5%.
Capital Markets Overview 3Q21
Sources: FTSE Russell, S&P Dow Jones Indices
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Callan
Capital Markets Overview (continued) 3Q21
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
-0.4%
-1.1%
0.0%
-3.0%
-0.7%
0.0%
0.7%
-1.9%
-0.3%
-4.4%
4.6%
-8.1%
-18.2%
3.4%
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
25.7%
27.4%
28.8%
23.9%
26.5%
33.1%
30.1%
26.1%
31.2%
25.8%
22.1%
18.2%
-7.3%
32.2%
Source: MSCI
GLOBAL EQUITY
Fears of stagflation stoke market volatility
–Delta variant flare-ups and slowdown in China weighed on
global recovery.
–COVID-driven supply chain disruption continues to push
inflation higher.
–Small cap outpaced large as global recovery concerns
disproportionately punished large cap companies.
–Emerging markets struggled relative to developed markets
as growth prospects were under pressure for China and
Brazil.
Market pivots to cyclicals
–Energy crunch fueled the sector to the highest return in the
quarter as demand outstripped supply.
–Financials outperformed; Real Estate and Utilities generally
underperformed with higher interest rate expectations.
–Sentiment and momentum signals added value in developed
markets but not in emerging markets.
U.S. dollar vs. other currencies
–The U.S. dollar rose against other major currencies as the
Fed signaled tapering is imminent, which notably detracted
from global ex-U.S. results.
Growth vs. value
–Value outpaced growth in emerging markets due to the
Energy rally, while both were relatively flat in developed
markets.
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Bloomberg Gov/Cr 1-3 Yr
Bloomberg Interm Gov/Cr
Bloomberg Aggregate
Bloomberg Long Gov/Cr
Bloomberg Universal
CS Leveraged Loans
Bloomberg High Yield
Bloomberg TIPS
U.S. Fixed Income: Quarterly Returns
0.1%
0.0%
0.1%
0.1%
0.1%
1.1%
0.9%
1.8%
Bloomberg Gov/Cr 1-3 Yr
Bloomberg Interm Gov/Cr
Bloomberg Aggregate
Bloomberg Long Gov/Cr
Bloomberg Universal
CS Leveraged Loans
Bloomberg High Yield
Bloomberg TIPS
U.S. Fixed Income: One-Year Returns
0.3%
-0.4%
-0.9%
-3.0%
0.2%
8.5%
11.3%
5.2%
U.S. Treasury Yield Curves
U.S. FIXED INCOME
Treasury yields largely unchanged from 2Q21
–Yields ended a volatile quarter only slightly higher after the
Fed signaled it may soon begin tapering its bond buying
program.
–2-year and 10-year Treasury yields rose 3 and 7 bps,
respectively.
–TIPS outperformed nominal Treasuries, and 10-year
breakeven spreads widened 5 bps to 2.37%.
Bloomberg Aggregate flat as spreads widened
–Minor gains in Treasuries and agency MBS were offset by
declines in government-related, CMBS, and corporates.
–IG corporate trailed Treasuries by 15 bps (duration-adjusted)
as spreads widened within long bonds.
High yield and leveraged loans continue rally
–Leverage loans (+1.1%) outperformed high yield, driven by
favorable supply/demand dynamics.
–High yield issuers' default rate declined to 0.9% in
September, the lowest since March 2014.
Munis underperform Treasuries
–Supply was modest and demand was fueled by expectations
for higher tax rates and strong credit fundamentals.
–Lower-quality bonds continued their trend of outperformance
as investors sought yield.
Fed reiterates that current price pressures are transitory
–Inflation is being temporarily influenced by pandemic-related
supply bottlenecks (e.g., used cars and housing).
–Used autos spiked (+32% YOY), but rents (with a greater
weight in the index) have started to apply price pressure.
–Fed’s flexible average inflation targeting (FAIT) allows
inflation to overshoot the 2% neutral rate; PCE (Fed’s
preferred inflation measure) rose 4.3% in August.
Policy adjustments may be on the horizon
–Fed signaled it would move up its taper announcement.
–Sep ‘21 Fed Funds rate forecast illustrated a potential rate
hike in 2022, with a 25 bps increase; the previous dot plot
had no hikes until 2023.
Capital Markets Overview (continued) 3Q21
Sources: Bloomberg, Credit Suisse
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
0 5 10 15 20 25 30
Maturity (Years)
9/30/2021 6/30/2021 9/30/2020........
Callan
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Bloomberg Global Aggregate
Bloomberg Global Agg (hdg)
Bloomberg Global High Yield
Bloomberg Global 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
-0.9%
0.1%
-0.4%
-1.6%
-0.7%
-3.1%
-1.9%
-0.3%
Bloomberg Global Aggregate
Bloomberg Global Agg (hdg)
Bloomberg Global High Yield
Bloomberg Global 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
-0.9%
-0.6%
9.5%
-1.2%
4.4%
2.6%
3.5%
4.3%
Change in 10-Year Global Government Bond Yields
GLOBAL FIXED INCOME
Global fixed income flat on a hedged basis
–Returns were muted and U.S. dollar strength eroded returns
for unhedged U.S. investors.
–The dollar gained roughly 2% vs. a basket of developed
market currencies.
Emerging market debt falls
–The U.S. dollar-denominated index (EMBI Global Diversified)
declined as the Delta variant in some countries raised
concerns, and the local Index (JPM GBI-EM Global
Diversified) lost further ground due to currency depreciation.
–Most emerging currencies depreciated versus the dollar.
Notables include Brazil real (-7.9%) and South Africa rand (-
5.1%).
–EM corporates fared better amid improving corporate
fundamentals and the global economic recovery.
Inflation overseas
–Yields have increased as non-U.S. developed market
countries also deal with supply bottlenecks and pressure
from energy prices.
–Euro zone inflation has been elevated, but not at same level
as the U.S.
–Central bank policy is mixed.
–The U.K.’s Bank of England has signaled a potential
tightening of its monetary policy by the end of 2021.
–The European Central Bank remains on hold.
Capital Markets Overview (continued) 3Q21
Sources: Bloomberg, JP Morgan
2 bps
1 bps
31 bps
12 bps
1 bps
01234567891011121314151617181920212223242526272829303132
U.S. Treasury
Germany
U.K.
Canada
Japan
2Q21 to 3Q21
Callan
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Active Management Overview
Market Overview
Active Management vs Index Returns
Market Overview
The charts below illustrate the range of returns across managers in Callan’s Separate Account database over the most
recent one quarter and one year time periods. The database is broken down by asset class to illustrate the difference in
returns across those asset classes. An appropriate index is also shown for each asset class for comparison purposes. As an
example, the first bar in the upper chart illustrates the range of returns for domestic equity managers over the last quarter.
The triangle represents the S&P 500 return. The number next to the triangle represents the ranking of the S&P 500 in the
Large Cap Equity manager database.
Range of Separate Account Manager Returns by Asset Class
One Quarter Ended September 30, 2021
Re
t
u
r
n
s
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
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
(34)
(92)
(33)(79)
(59)
(15)
10th Percentile 1.72 1.07 0.91 0.25 (1.35)5.91
25th Percentile 0.91 (0.31)0.01 0.20 (1.48)3.88
Median 0.15 (1.75)(1.19)0.13 (1.73)3.27
75th Percentile (0.75)(2.77)(2.41)0.06 (2.48)2.8190th Percentile (1.63)(3.82)(3.21)0.00 (3.63)1.93
Index 0.58 (4.36)(0.45)0.05 (1.97)5.23
Range of Separate Account Manager Returns by Asset Class
One Year Ended September 30, 2021
Re
t
u
r
n
s
(20%)
(10%)
0%
10%
20%
30%
40%
50%
60%
70%
80%
Large Cap Small Cap Non-US Domestic Non-US Real
Equity Equity Equity Fixed Income Fixed Income EstatevsvsvsvsvsvsS&P 500 Russell 2000 MSCI EAFE Blmbg Aggr Bd Citi Non-US Govt NCREIF Index
(55)
(62)
(53)
(94)(94)
(40)
10th Percentile 44.69 68.98 38.45 1.22 3.86 16.34
25th Percentile 38.53 58.99 29.61 0.72 2.41 14.01Median 30.35 50.16 26.46 0.11 0.36 11.20
75th Percentile 27.10 41.10 22.48 (0.43)(1.24)9.45
90th Percentile 23.37 33.39 17.87 (0.77)(2.97)8.32
Index 30.00 47.68 25.73 (0.90)(3.41)12.15
7Orange County Sanitation District
-~ -
-
~ ...
-~ ~ ... -
B
-...
-□ -
-
-~ § -
-
~
-...
-
Callan
Domestic Fixed Income
Active Management Overview
U.S. Treasury yields were relatively unchanged from 6/30/21, masking intra-quarter volatility. The 10-year U.S. Treasury
closed the quarter at 1.52%, up sharply from early August when it traded at 1.19%. The Bloomberg US Aggregate Bond
Index returned 0.1% for the quarter. Investment grade corporates underperformed U.S. Treasuries by 15 bps on a
duration-adjusted basis as spreads widened modestly. TIPS outperformed nominal Treasuries (Bloomberg US TIPS Index:
+1.8%; Bloomberg US Treasury Index: 0.1%) and 10-year breakeven spreads widened 5 bps to 2.37%. The Bloomberg High
Yield Index rose 0.9% and leveraged loans (S&P LSTA Lev Loan: +1.1%) also performed well. The high yield default rate
declined to 0.9% in September, the lowest since March 2014, according to data from J.P. Morgan.
Separate Account Style Group Median Returns
for Quarter Ended September 30, 2021
0.0%
0.5%
1.0%
1.5%
0.13
Defensive
0.07
Intermed
0.13
Core
Bond
0.25
Core Plus
0.11
Extended
Maturity
1.14
Bank
Loans
0.94
High Yield
Re
t
u
r
n
s
Blmbg Aggregate:0.05%
Blmbg High Yield:0.89%
Blmbg Long Gov/Cred: 0.07%
Separate Account Style Group Median Returns
for One Year Ended September 30, 2021
(5%)
0%
5%
10%
15%
20%
0.69
Defensive
(0.03 )
Intermed
0.11
Core
Bond
1.69
Core Plus
(1.61 )
Extended
Maturity
8.07
Bank
Loans
11.28
High Yield
Re
t
u
r
n
s
Blmbg Aggregate:(0.90%)
Blmbg High Yield:11.28%
Blmbg Long Gov/Cred:(2.97%)
8Orange County Sanitation DistrictCallan
Asset Allocation
Investment Manager Asset Allocation
The table below contrasts the distribution of assets across the Fund’s investment managers as of September 30, 2021, with
the distribution as of June 30, 2021. The change in asset distribution is broken down into the dollar change due to Net New
Investment and the dollar change due to Investment Return.
Asset Distribution Across Investment Managers
September 30, 2021 June 30, 2021
Market Value Weight Net New Inv. Inv. Return Market Value Weight
Domestic Fixed Income
Long Term Operating Fund*686,521,678 84.09%0 599,311 685,922,367 76.75%
Liquid Operating Monies*129,859,149 15.91%(78,000,000)42,106 207,817,043 23.25%
Total Fund $816,380,826 100.0%$(78,000,000)$641,417 $893,739,409 100.0%
*Chandler replaced PIMCO during the 4th quarter of 2014. Assets were transferred in-kind as of 12/01/2014.
10Orange County Sanitation DistrictCallan
Investment Manager Returns
The table below details the rates of return for the Fund’s investment managers over various time periods ended September
30, 2021. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The
first set of returns for each asset class represents the composite returns for all the fund’s accounts for that asset class.
Returns for Periods Ended September 30, 2021
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating Fund^0.09% 0.06% 3.42% 2.17% 2.09%
Chandler 0.09% 0.06% 3.42% 2.17%-
Blmbg Govt/Cred 1-5 Year Idx 0.05% 0.08% 3.62% 2.19% 2.14%
ML 1-5 Govt/Corp 0.03% 0.18% 3.64% 2.21% 2.17%
Liquid Operating Monies^0.09% 0.17% 1.32% 1.26% 0.98%
Chandler 0.09% 0.17% 1.32% 1.26%-
Citigroup 3-Month Treasury Bill 0.01% 0.06% 1.14% 1.13% 0.84%
Total Fund 0.07% 0.07% 3.02% 1.97% 1.86%
Target*0.03% 0.16% 3.14% 2.00% 1.90%
* Current Quarter Target = 80.0% ICE 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 DistrictCallan
Investment Manager Returns
The table below details the rates of return for the Fund’s investment managers over various time periods ended September
30, 2021. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The
first set of returns for each asset class represents the composite returns for all the fund’s accounts for that asset class.
Returns for Periods Ended September 30, 2021
Last Last Last
10 15 26
Years Years Years
Domestic Fixed Income
Long Term Operating Fund^1.80%3.01%4.10%
Blmbg Govt/Cred 1-5 Year Idx 1.89%2.90%3.96%
ML 1-5 Govt/Corp 1.95%2.93%3.99%
Liquid Operating Monies^0.73%1.15%2.44%
Citigroup 3-Month Treasury Bill 0.60%0.94%2.15%
Total Fund 1.60%2.65%3.83%
Target*1.68%2.53%3.62%
* Current Quarter Target = 80.0% ICE 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 DistrictCallan
Investment Manager Returns
The table below details the rates of return for the Fund’s investment managers over various time periods. Negative returns
are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each
asset class represents the composite returns for all the fund’s accounts for that asset class.
12/2020-
9/2021 2020 2019 2018 2017
Domestic Fixed Income
Long Term Operating Fund^(0.16%)4.42% 4.70% 1.60% 1.18%
Chandler (0.16%)4.42% 4.70% 1.60% 1.18%
Blmbg Govt/Cred 1-5 Year Idx (0.25%)4.71% 5.01% 1.38% 1.27%
ML 1-5 Govt/Corp (0.18%)4.65% 5.08% 1.40% 1.28%
Liquid Operating Monies^0.15% 0.84% 2.39% 1.90% 0.91%
Chandler 0.15% 0.84% 2.39% 1.90% 0.91%
Citigroup 3-Month Treasury Bill 0.03% 0.58% 2.25% 1.86% 0.84%
Total Fund (0.09%)3.73% 4.26% 1.72% 1.02%
Target*(0.14%)3.82% 4.51% 1.49% 1.19%
* Current Quarter Target = 80.0% ICE 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 DistrictCallan
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.
2016 2015 2014 2013 2012
Domestic Fixed Income
Long Term Operating Fund^1.58% 0.85% 1.98%(1.77%)3.06%
Blmbg Govt/Cred 1-5 Year Idx 1.56% 0.97% 1.42% 0.28% 2.24%
ML 1-5 Govt/Corp 1.62% 1.05% 1.51% 0.32% 2.47%
Liquid Operating Monies^0.47% 0.22% 0.09% 0.13% 0.17%
Citigroup 3-Month Treasury Bill 0.27% 0.03% 0.03% 0.05% 0.07%
Total Fund 1.15% 0.80% 1.73%(1.49%)2.70%
Target*1.35% 0.85% 1.21% 0.26% 1.99%
* Current Quarter Target = 80.0% ICE 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 DistrictCallan
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%
Total Fund
Blmbg Gov/Cred 1-5 Yr
FTSE 3 Mo T-Bill
Total Fund Target
ICE Corp/Gov 1-5 Yr
Standard Deviation
Re
t
u
r
n
s
Seven Year Annualized Risk vs Return
Asset Classes vs Asset Class Median
0.30%0.40%0.50%0.60%0.70%0.80%0.90%1.00%1.10%1.20%1.30%1.40%1.50%
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 DistrictCallan
Manager Analysis
Long Term Operating Fund
Period Ended September 30, 2021
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 0.09% return
for the quarter placing it in the 84 percentile of the Callan
Short Term Fixed Income group for the quarter and in the 94
percentile for the last year.
Long Term Operating Fund’s portfolio outperformed the ICE
Corp/Gov 1-5 Yr by 0.05% for the quarter and
underperformed the ICE Corp/Gov 1-5 Yr for the year by
0.12%.
Quarterly Asset Growth
Beginning Market Value $685,922,367
Net New Investment $0
Investment Gains/(Losses) $599,311
Ending Market Value $686,521,678
Performance vs Callan Short Term Fixed Income (Gross)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
Last Quarter Last Last 3 Years Last 5 Years Last 6-3/4 Last 7 Years Last 10 Years Last 26 Years
Year Years
A(84)
B(96)(98)B(93)
A(94)(88)
B(25)
A(38)(23)
B(63)A(65)(62)B(52)A(59)(49)B(49)
A(54)(43)B(59)A(69)(54)
A(16)B(32)(30)
10th Percentile 0.28 2.11 3.95 2.81 2.69 2.66 2.72 4.30
25th Percentile 0.21 1.30 3.61 2.61 2.51 2.45 2.35 4.02
Median 0.13 0.69 3.23 2.31 2.16 2.12 2.00 3.79
75th Percentile 0.10 0.35 3.02 2.10 1.95 1.91 1.73 3.61
90th Percentile 0.07 0.15 2.70 1.90 1.73 1.70 1.42 3.28
Long Term
Operating Fund A 0.09 0.06 3.42 2.17 2.09 2.09 1.80 4.10
Blmbg Govt/Cred
1-5 Year Idx B 0.05 0.08 3.62 2.19 2.15 2.14 1.89 3.96
ICE Corp/Gov 1-5 Yr 0.03 0.18 3.64 2.21 2.19 2.17 1.95 3.99
Relative Return vs ICE 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%
14 2015 2016 2017 2018 2019 2020 2021
Long Term Operating Fund
Callan Short Term Fixed Income (Gross)
Annualized Seven Year Risk vs Return
0 1 2 3 4 5
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
Long Term Operating Fund
ICE Corp/Gov 1-5 Yr
Blmbg Govt/Cred 1-5 Year Idx
Standard Deviation
Re
t
u
r
n
s
17Orange County Sanitation District
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Long Term Operating Fund
Return Analysis Summary
Return Analysis
The graphs below analyze the manager’s return on both a risk-adjusted and unadjusted basis. The first chart illustrates the
manager’s ranking over different periods versus the appropriate style group. The second chart shows the historical quarterly
and cumulative manager returns versus the appropriate market benchmark. The last chart illustrates the manager’s ranking
relative to their style using various risk-adjusted return measures.
Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Performance vs Callan Short Term Fixed Income (Gross)
(3%)(2%)(1%)0%1%2%3%4%5%6%7%
12/20- 9/21 2020 2019 2018 2017 2016 2015 2014 2013 2012
A(94)B(95)94
B(23)
A(35)24 B(21)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
10th Percentile 1.00 5.10 5.47 2.00 2.29 2.79 1.17 1.50 1.20 4.4625th Percentile 0.53 4.59 4.94 1.82 1.74 2.17 1.01 1.27 0.80 2.60
Median 0.25 3.93 4.52 1.69 1.31 1.56 0.91 1.11 0.65 1.81
75th Percentile 0.07 3.51 4.10 1.54 0.95 1.18 0.76 0.87 0.40 1.45
90th Percentile (0.09)2.44 3.59 1.33 0.66 1.04 0.62 0.73 0.29 0.92
Long Term
Operating Fund A (0.16)4.42 4.70 1.60 1.18 1.58 0.85 1.98 (1.77)3.06
Blmbg Govt/Cred
1-5 Year Idx B (0.25)4.71 5.01 1.38 1.27 1.56 0.97 1.42 0.28 2.24
ICE Corp/Gov
1-5 Yr (0.18)4.65 5.08 1.40 1.28 1.62 1.05 1.51 0.32 2.47
Cumulative and Quarterly Relative Return vs ICE Corp/Gov 1-5 Yr
Re
l
a
t
i
v
e
R
e
t
u
r
n
s
(3.0%)
(2.5%)
(2.0%)
(1.5%)
(1.0%)
(0.5%)
0.0%
0.5%
1.0%
1.5%
11 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Long Term Operating Fund Blmbg Govt/Cred 1-5 Year Idx Callan Short Fixed Inc
Risk Adjusted Return Measures vs ICE Corp/Gov 1-5 Yr
Rankings Against Callan Short Term Fixed Income (Gross)
Seven Years Ended September 30, 2021
(1.0)
(0.5)
0.0
0.5
1.0
1.5
Alpha Sharpe Excess Return
Ratio Ratio
A(90)B(96)
A(67)B(75)
A(65)
B(71)
10th Percentile 0.91 1.10 0.42
25th Percentile 0.69 1.01 0.22
Median 0.41 0.94 (0.04)
75th Percentile 0.20 0.78 (0.41)90th Percentile 0.07 0.64 (0.67)
Long Term Operating Fund A 0.08 0.82 (0.21)
Blmbg Govt/Cred 1-5 Year Idx B (0.06)0.78 (0.33)
18Orange County Sanitation DistrictCallan
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Long Term Operating Fund
Bond Characteristics Analysis Summary
Portfolio Characteristics
This graph compares the manager’s portfolio characteristics with the range of characteristics for the portfolios which make up
the manager’s style group. This analysis illustrates whether the manager’s current holdings are consistent with other
managers employing the same style.
Fixed Income Portfolio Characteristics
Rankings Against Callan Short Term Fixed Income
as of September 30, 2021
(1.0)
(0.5)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Average Effective Coupon OA
Duration Life Yield Rate Convexity
(6)(5)(22)(19)
(70)
(67)
(35)
(21)
10th Percentile 2.37 3.00 1.38 2.48 0.10
25th Percentile 1.92 2.53 0.97 2.06 0.05
Median 1.84 2.10 0.79 1.78 (0.01)
75th Percentile 1.61 1.85 0.59 1.38 (0.13)
90th Percentile 1.08 1.42 0.41 1.01 (0.22)
Long Term
Operating Fund 2.54 2.60 -1.52 -
ICE Corp/Gov 1-5 Yr 2.62 2.74 0.62 1.91 0.06
Sector Allocation and Quality Ratings
The first graph compares the manager’s sector allocation with the average allocation across all the members of the
manager’s style. The second graph compares the manager’s weighted average quality rating with the range of quality ratings
for the style.
Sector Allocation
September 30, 2021
0%10%20%30%40%50%60%70%80%
US Trsy
31.824.9 64.6
Gov Related
24.6
50
%
Mg
r
M
V
50
%
Mg
r
M
V
2.7 9.4
Corp (incl 144A)
23.6 48.526.0
Other 12.7
ABS
6.0 14.7
CMOs
0.90.7
Cash
0.30.9
CMBS 0.1 6.0
RMBS 1.5
Long Term Operating Fund Callan Short Term Fixed Income
ICE 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
(52)(9)
10th Percentile AA
25th Percentile AA
Median AA
75th Percentile A
90th Percentile A
Long TermOperating Fund AA
ICE Corp/Gov 1-5 Yr AA
19Orange County Sanitation DistrictCallan
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Long Term Operating Fund
Portfolio Characteristics Summary
As of September 30, 2021
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
32%
CMBS
0%
Gov Related
25%
Cash
0%Corp (incl 144A)
24%
CMOs
1%
Other
13%
ABS6%
ML:Corp/Gov 1-5 Yr
US Trsy
65%
Gov Related
9%
Corp (incl 144A)
26%
Duration Distribution
0%
10%
20%
30%
40%
50%
60%
70%
<1
13.1
2.0
1-3
49.2
59.0
3-5
37.7 39.0
5-7 7-10 >10
Years Duration
Pe
r
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n
t
o
f
P
o
r
t
f
o
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i
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Weighted Average:Duration
Long Term Operating Fund:
ML:Corp/Gov 1-5 Yr:
2.54
2.62
Quality Distribution
0%
20%
40%
60%
80%
100%
AAA
14.4
70.5
AA
65.2
4.4
A
15.2 12.3
BBB
1.3
12.8
BB B CCC CC C N/R
3.9
Quality Rating
Pe
r
c
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n
t
o
f
P
o
r
t
f
o
l
i
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Weighted Average:Quality
Long Term Operating Fund:
ML:Corp/Gov 1-5 Yr:
AA
AA
20Orange County Sanitation District
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~-~-~-~-~-~-~-------,-------1 ■
Callan
Chandler-Liquid Operating Money
Period Ended September 30, 2021
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 0.06%
return for the quarter placing it in the 14 percentile of the
Callan Money Market Funds group for the quarter and in the
49 percentile for the last year.
Liquid Operating Money Net’s portfolio outperformed the
Citigroup 3-Month Treasury Bill by 0.05% for the quarter and
underperformed the Citigroup 3-Month Treasury Bill for the
year by 0.04%.
Quarterly Asset Growth
Beginning Market Value $207,817,043
Net New Investment $-78,000,000
Investment Gains/(Losses)$42,106
Ending Market Value $129,859,149
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 6-3/4 Last 7 Years Last 10 Years Last 26 Years
Year Years
(14)(26)(49)(29)
(29)(30)(31)(30)
(28)(28)(28)(28)
(26)(24)
(13)(23)
10th Percentile 0.09 0.73 1.90 1.81 1.54 1.47 1.33 2.54
25th Percentile 0.01 0.11 1.30 1.21 0.92 0.89 0.59 2.14
Median 0.00 0.02 0.94 0.90 0.68 0.65 0.45 1.99
75th Percentile 0.00 0.01 0.83 0.78 0.58 0.56 0.39 1.89
90th Percentile (0.00)0.00 0.75 0.66 0.50 0.48 0.33 1.77
Liquid Operating
Money Net 0.06 0.02 1.17 1.11 0.86 0.83 0.58 2.28
Citigroup 3-Month
Treasury Bill 0.01 0.06 1.14 1.13 0.87 0.84 0.60 2.15
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%
14 2015 2016 2017 2018 2019 2020 2021
Liquid Operating Money Net
Callan Money Market Funds (Net)
Annualized Seven Year Risk vs Return
0 1 2 3 4 5 6 7
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
Citigroup 3-Month Treasury Bill
Liquid Operating Money Net
Standard Deviation
Re
t
u
r
n
s
21Orange County Sanitation District
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Callan
Liquid Operating Money Net
Return Analysis Summary
Return Analysis
The graphs below analyze the manager’s return on both a risk-adjusted and unadjusted basis. The first chart illustrates the
manager’s ranking over different periods versus the appropriate style group. The second chart shows the historical quarterly
and cumulative manager returns versus the appropriate market benchmark. The last chart illustrates the manager’s ranking
relative to their style using various risk-adjusted return measures.
Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Performance vs Callan Money Market Funds (Net)
(0.5%)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
12/20- 9/21 2020 2019 2018 2017 2016 2015 2014 2013 2012
3130
2426
2827
2212
3530
3033 2236 9822 9820 4424
10th Percentile 0.33 1.70 3.20 1.89 1.42 1.32 0.28 0.35 0.30 0.85
25th Percentile 0.07 0.62 2.32 1.72 0.91 0.40 0.06 0.03 0.04 0.06
Median 0.01 0.34 1.96 1.53 0.61 0.14 0.01 0.01 0.01 0.01
75th Percentile 0.01 0.27 1.76 1.30 0.42 0.04 0.01 0.01 0.01 0.0190th Percentile 0.00 0.19 1.50 1.04 0.23 0.01 0.00 0.00 0.00 0.00
Liquid Operating
Money Net 0.03 0.69 2.24 1.75 0.76 0.32 0.07 (0.06) (0.02)0.02
Citigroup 3-Month
Treasury Bill 0.03 0.58 2.25 1.86 0.84 0.27 0.03 0.03 0.05 0.07
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%
11 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Liquid Operating Money Net Callan Money Market Funds
Risk Adjusted Return Measures vs Citigroup 3-Month Treasury Bill
Rankings Against Callan Money Market Funds (Net)
Seven Years Ended September 30, 2021
(4)
(3)
(2)
(1)
0
1
2
Alpha Sharpe Excess Return
Ratio Ratio
(33)(28)(28)
10th Percentile 1.15 0.47 0.54
25th Percentile 0.16 0.04 0.16
Median (0.18)(0.52)(2.24)
75th Percentile (0.27)(0.85)(2.72)
90th Percentile (0.35)(1.21)(2.83)
Liquid Operating Money Net (0.05)(0.08)(0.05)
22Orange County Sanitation District
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Callan
Callan Research/Education
Quarterly Highlights
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
Comparing Actuarial vs. Consultant Rates of Return | In this
paper, Callan’s Brady O’Connell and John Pirone review the dif-
ferences between actuarial discount rates and consultant return
forecasts. They remind iduciaries of the importance of these two
assumptions, why the numbers vary in practice and use, and why
setting asset-allocation strategy is not simply an act of making the
consultant return expectation match the actuarial discount rate.
The Role of Real Estate and Infrastructure Debt in a Portfolio |
As capital markets assumptions have declined, institutional inves-
tors are increasingly interested in real estate and infrastructure debt
as they pursue return-seeking assets. In this article, Jan Mende
and Munir Iman discuss key aspects of these options.
Now What? The Role of Target Date Funds in Retirement | Much
of the attention on the rise of TDFs focused on their role during the
“accumulation” phase, as participants build up assets during their
career. Now that sponsors have successfully incorporated TDFs
into their DC plans to help participants build up assets, the time
is right to focus on the potential role of TDFs during retirement by
examining the makeup and income-generating possibilities of the
post-retirement glidepath.
Blog Highlights
GPs Take ‘Credit’ for Higher IRRs | Subscription credit facilities
are used to inance activities that would otherwise be funded by
capital calls from the limited partners in a private markets fund.
These “sub lines” give the general partner the lexibility to call
capital less frequently by combining multiple cash lows into a
single capital call, and they also can delay initial capital calls until
a large capital outlay is required. But investors should note that
this increases the internal rate of return (IRR) as it shortens the
effective investment period.
Seeking Yield in All the Right Places | One potential solution to
help insurance investors meet their return goals without dispro-
portionately adding risk is investment-grade private placements.
This strategy presents opportunities to increase portfolio yields
with higher spreads compared to other types of ixed income for
similar levels of required capital.
PCE and CPI: What’s the Difference? | The CPI is released
by the Bureau of Labor Statistics and the PCE by the Bureau of
Economic Analysis. While both measure inlation based on a bas-
ket of goods, they have subtle differences, including the sources
of data, what they cover, and the formulas they use.
Quarterly Periodicals
Private Equity Trends, 2Q21 | A high-level summary of private
equity activity in the quarter through all the investment stages
Active vs. Passive Charts, 2Q21 | A comparison of active man-
agers alongside relevant benchmarks over the long term
Market Pulse Flipbook, 2Q21 | A quarterly market reference
guide covering trends in the U.S. economy, developments for in-
stitutional investors, and the latest data on the capital markets
Capital Markets Review, 2Q21 | Analysis and a broad overview
of the economy and public and private market activity each quarter
across a wide range of asset classes
Hedge Fund Quarterly, 2Q21 | Commentary on developments for
hedge funds and multi-asset class (MAC) strategies
Real Assets Reporter, 2Q21 | A summary of market activity for
real assets and private real estate during the quarter
Education
3rd Quarter 2021
I~ ~Callan Institute
Research I Education I Dialogue
Events
A complete list of all upcoming events can be found on our web-
site: callan.com/events-education.
Please mark your calendar and look forward to upcoming invitations:
Research Café: DOL Cybersecurity Tips
November 10, 2021 – 9:30 am (PST)
National Conference
April 25-27, 2022, in San Francisco
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
December 1-2, 2021 - Chicago
This program familiarizes institutional investor trustees and staff
and asset management advisers with basic investment theory,
terminology, and practices. Our virtual session is held over three
days with virtual modules of 2.5-3 hours, while the in-person ses-
sion lasts one-and-a-half days. This course is designed for indi-
viduals with less than two years of experience with asset-man-
agement oversight and/or support responsibilities. Virtual tuition
is $950 per person and includes instruction and digital materials.
In-person tuition is $2,350 per person and includes instruction, all
materials, breakfast and lunch on each day, and dinner on the irst
evening with the instructors.
Additional information including registration can be found at:
callan.com/events-education
Introductory Workshop for DC Plan Fiduciaries
March 23, 2022 - San Francisco
This one-day workshop centers on the fundamentals of administer-
ing a deined contribution (DC) plan. Designed primarily for ERISA
iduciaries and supporting staff members, attendees will gain a bet-
ter understanding of the key responsibilities of an ERISA iduciary
and best practices for executing those responsibilities. Additionally,
we will cover the basics of capital markets theory and DC invest-
ment menu design principles; investment manager evaluation,
selection, and monitoring; best practices for evaluating fees; the
regulatory and legal landscape; and industry trends. This workshop
is complimentary and open to institutional investor clients.
Additional information including dates and registration can be
found at: callan.com/events/mar-dc-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 Oficer
Callan Institute
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.
27Callan
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.
28Callan
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.
29Callan
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.
30Callan
Disclosures
List of Callan’s Investment Manager Clients
Confidential – For Callan Client Use Only
Callan takes its fiduciary and disclosure responsibilities to clients very seriously. We recognize that there are numerous potential
conflicts of interest encountered in the investment consulting industry, and that it is our responsibility to manage those conflicts
effectively and in the best interest of our clients. At Callan, we employ a robust process to identify, manage, monitor, and disclose
potential conflicts on an ongoing basis.
The list below is an important component of our conflicts management and disclosure process. It identifies those investment managers
that pay Callan fees for educational, consulting, software, database, or reporting products and services. We update the list quarterly
because we believe that our fund sponsor clients should know the investment managers that do business with Callan, particularly those
investment manager clients that the fund sponsor clients may be using or considering using. Please note that if an investment manager
receives a product or service on a complimentary basis (e.g., attending an educational event), they are not included in the list below.
Callan is committed to ensuring that we do not consider an investment manager’s business relationship with Callan, or lack thereof, in
performing evaluations for or making suggestions or recommendations to its other clients. Please refer to Callan’s ADV Part 2A for a
more detailed description of the services and products that Callan makes available to investment manager clients through our
Institutional Consulting Group, Independent Adviser Group, and Fund Sponsor Consulting Group. Due to the complex corporate and
organizational ownership structures of many investment management firms, parent and affiliate firm relationships are not indicated on
our list.
Fund sponsor clients may request a copy of the most currently available list at any time. Fund sponsor clients may also request specific
information regarding the fees paid to Callan by particular fund manager clients. Per company policy, information requests regarding
fees are handled exclusively by Callan’s Compliance department.
Quarterly List as of
September 30, 2021
September 30, 2021
Manager Name
abrdn (Aberdeen Standard Investments)
Acadian Asset Management LLC
Adams Street Partners, LLC
AEGON USA Investment Management Inc.
AllianceBernstein
Allianz
American Century Investments
AQR Capital Management
Ares Management LLC
Ariel Investments, LLC
Aristotle Capital Management, LLC
Atlanta Capital Management Co., LLC
Aviva Investors
AXA Investment Managers
Baillie Gifford International, LLC
Baird Advisors
Barings LLC
Baron Capital Management, Inc.
Manager Name
Barrow, Hanley, Mewhinney & Strauss, LLC
BlackRock
BMO Global Asset Management
BNP Paribas Asset Management
BNY Mellon Asset Management
Boston Partners
Brandes Investment Partners, L.P.
Brandywine Global Investment Management, LLC
Brown Brothers Harriman & Company
Cambiar Investors, LLC
Capital Group
Carillon Tower Advisers
CastleArk Management, LLC
Causeway Capital Management LLC
Chartwell Investment Partners
ClearBridge Investments, LLC
Cohen & Steers Capital Management, Inc.
Columbia Threadneedle Investments North America
Callan
Callan I
September 30, 2021 2
Manager Name
Credit Suisse Asset Management
Crescent Capital Group LP
Crosscreek Capital Group
D.E. Shaw Investment Management, LLC
DePrince, Race & Zollo, Inc.
Dimensional Fund Advisors LP
Doubleline
Duff & Phelps Investment Management Co.
DWS
EARNEST Partners, LLC
Eaton Vance Management
Epoch Investment Partners, Inc.
Fayez Sarofim & Company
Federated Hermes, Inc.
Fidelity Institutional Asset Management
Fiera Capital Corporation
First Hawaiian Bank Wealth Management Division
First Sentier Investors (formerly First State Investments)
Fisher Investments
Franklin Templeton
GAM (USA) Inc.
GCM Grosvenor
GlobeFlex Capital, L.P.
GoldenTree Asset Management, LP
Goldman Sachs
Guggenheim Investments
GW&K Investment Management
Harbor Capital Group Trust
Heitman LLC
Hotchkis & Wiley Capital Management, LLC
Income Research + Management, Inc.
Insight Investment
Intech Investment Management, LLC
Intercontinental Real Estate Corporation
Invesco
J.P. Morgan
Janus
Jennison Associates LLC
Jobs Peak Advisors
J O Hambro Capital Management Limited
Manager Name
KeyCorp
Lazard Asset Management
LGIM America (formerly Legal & General Inv Mgmt America)
Lincoln National Corporation
Longview Partners
Loomis, Sayles & Company, L.P.
Lord Abbett & Company
LSV Asset Management
MacKay Shields LLC
Macquarie Investment Management (MIM)
Manning & Napier Advisors, LLC
Manulife Investment Management
McKinley Capital Management, LLC
Mellon
MetLife Investment Management
MFS Investment Management
MidFirst Bank
Mondrian Investment Partners Limited
Montag & Caldwell, LLC
Morgan Stanley Investment Management
MUFG Union Bank, N.A.
Natixis Investment Managers
Neuberger Berman
Newton Investment Management
Ninety One North America, Inc. (formerly Investec Asset Mgmt.)
Northern Trust Asset Management
Nuveen
Pacific Investment Management Company
Parametric Portfolio Associates LLC
Partners Group (USA) Inc.
Pathway Capital Management
P/E Investments
Peregrine Capital Management, LLC
PFM Asset Management LLC
PGIM Fixed Income
PineBridge Investments
Polen Capital Management, LLC
Principal Global Investors
Putnam Investments, LLC
QMA LLC
Callan I
September 30, 2021 3
Manager Name
RBC Global Asset Management
Regions Financial Corporation
Richard Bernstein Advisors LLC
Robeco Institutional Asset Management, US Inc.
Rothschild & Co. Asset Management US
S&P Dow Jones Indices
Schroder Investment Management North America Inc.
SLC Management
Smith Graham & Co. Investment Advisors, L.P.
State Street Global Advisors
Stone Harbor Investment Partners L.P.
Strategic Global Advisors, LLC
T. Rowe Price Associates, Inc.
The TCW Group, Inc.
Thompson, Siegel & Walmsley LLC
Manager Name
Thornburg Investment Management, Inc.
Tri-Star Trust Bank
VanEck
Versus Capital Group
Victory Capital Management Inc.
Virtus Investment Partners, Inc.
Vontobel Asset Management
Voya
WCM Investment Management
WEDGE Capital Management
Wellington Management Company LLP
Wells Fargo Asset Management
Western Asset Management Company LLC
Westfield Capital Management Company, LP
William Blair & Company LLC
Callan I
CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com
INVESTMENT REPORT
Period Ending September 30, 2021
Orange County Sanitation District
I ,.,,.a CHANDLER
"'--ASSET MANAGEMENT
SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Consolidated Information
SECTION 4 Portfolio Holdings
SECTION 5 Transactions
Table of Contents As of September 30, 2021
1
I
SECTION ||||||||||||||Section 1 |Economic Update
2
Economic Update
While some pockets of the economy remain dislocated, US real gross domestic product (GDP) has recovered to pre-
pandemic levels. The recovery has been fueled by robust fiscal spending, accommodative monetary policy, and
vaccinations. These factors are beginning to moderate but should continue to provide tailwinds for the economy in the
coming quarters. Covid infection rates have started to decline, but the health crisis continues to disrupt economicactivity
and has weighed on consumer sentiment. Supply chain and labor market disruptions are also likely to continue over the
near- to intermediate-term, putting ongoing upward pressure on transportation, input, and labor costs. Some pandemic-
related fiscal relief has started to phase out, but an infrastructure spending plan is onthe horizon. Meanwhile, the Federal
Reserve remains accommodative and continues to facilitate further improvementin the labor market.Overall, we believe
the US economy continues to grow at a strong, above-trend, pace but we believe economic data will remain somewhat
choppy over the near-term.
The Federal OpenMarketCommittee (FOMC)kept monetarypolicy unchangedat its September meetingbut indicated that
they are preparingtoreduce the magnitude of theirasset purchases. The fed funds targetrate remains in the range of 0.0%
to 0.25%. For now, the Fed continues to purchase $80billion of Treasuries per month, and$40billionof agencymortgage-
backedsecurities permonth. However,the Fedis nowwidely expectedto make the official announcement abouttapering
assetpurchasesatthe nextFOMC meetingin earlyNovember. The tapering processwould likelycommence December1st,
and Fed ChairPowell signaled that assetpurchases would likely end by mid-2022. The projected timeline for liftoff on rate
hikes was also pulled forward in the Fed’s updated summary of economic projections. The median estimate among Fed
policymakers now calls for one 25 basis point rate hike in 2022, versus the previous outlook for no rate hikes next year.
Monetary policy remains highly accommodative for now but the Fed is moving toward a path of policy normalization. We
believe the Fedwill be cautiousasitmovestowardaslowandsteady withdrawal of monetary policy accommodation, amid
a backdrop of an improving labor market and growing economy.
The Treasury yield curve steepened in September. The 10-year Treasury yield rose nearly 18 basis points in September to
1.49%, while the 2-year Treasury yield rose about seven basis points to 0.28%. We believe some of the factors that put
downward pressure on longer-term rates over the summer including concerns about the Delta COVID-19 variant, market
technicals, and uneven global vaccination rates, have started to ease. We expect the front-end of the curve to remain
anchored near zero over the near-term and believe the yield curve may be poised for further steepening. At the end of
September, the 10-year Treasury yield was down about 25 basis points from its high this year in March.
3
I
Source: US Department of Labor Source: US Department of Labor
Employment
Job growth was weaker than expected in September, but the unemployment rate fell below 5% for the first time since March 2020. U.S.
nonfarm payrolls increased by 194,000 in September, versus the consensus forecast of 500,000. However, July and August payrolls were revised
up a total of 169,000. On a trailing 3-month and 6-month basis, payrolls increased at a solid pace, up an average of 550,000 and 582,000 per
month, respectively. The U-3 unemployment rate declined to 4.8% in September from 5.2% in August, a bigger decline than expected. The
labor participation rate declined slightly to 61.6% in September but the employment-population ratio increased modestly to 58.7%. The U-6
underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons,
declined to 8.5% in Septemberfrom8.8% in August. Annualized average hourlyearnings were up by4.6% inSeptember versus4.0% inAugust,
reflecting strong wage growth driven in partby the ongoing imbalance in the supply and demand forlabor. Although labor force participation
has beenslow torecover andmore than7.6millionpeople remainunemployed, the labor markethas made significant progress over the past
year.
-22,000
-18,000
-14,000
-10,000
-6,000
-2,000
2,000
6,000
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%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Ra
t
e
(
%
)
4
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----
Initial Claims for Unemployment
326 364 351 335 312 345 354 349 377 387 399 424 368 386
2,714 2,811 2,820 2,715 2,852 2,805 2,908 2,865 2,899 2,980
3,296 3,262 3,265
-
1,000
2,000
3,000
4,000
5,000
6,000
In
t
h
o
u
s
a
n
d
s
Initial Jobless Claims
Continuing Claims
Initial Claims For Unemployment July 02, 2021 -October 01, 2021
In the most recent week, the number of initial jobless claims was 326,000 versus 364,000 in the prior week. The level of continuing
unemployment claims (where the data is lagged by one week) declined to 2.714 million from 2.811 million in the prior week. Continuing
jobless claims have declined significantly from the peak of nearly 25million in May 2020, but they remained above the 2019 (pre-pandemic)
average of 1.7 million.
Source: US Department of Labor
5
I
--
Source: US Department of Labor Source: US Department of Commerce
Inflation
The Consumer Price Index (CPI) was up 5.3% year-over-year in August, versus up 5.4% year-over-year in July. Core CPI (CPI less food and
energy) was up 4.0% year-over-year in August (below expectations), versus up 4.3% in July, suggesting that pricing pressures may be easing
slightly. The Personal Consumption Expenditures (PCE) index was up 4.3% year-over-year in August, versus up 4.2% in July. Core PCE was up
3.6% year-over-year in August, unchanged from July. Current inflation readings are running well above the Fed’s longer-run target of around
2.0%. While the Fed believes many of the factors fueling higher inflation will be temporary, the upward pressure on inflation from supply
chain bottlenecks and pandemic-related disruptions is likely to remain elevated over the near-term.
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
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%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YO
Y
(
%
)
C
h
a
n
g
e
6
I
E
On a year-over-year basis, retail sales were up 15.1% in August. On a month-over-month basis, retail sales were stronger than expected in
August, up 0.7% versus expectations of a 0.7% decline. The month-over-month gain was driven largely by increases in online shopping,
furniture and home furnishings, and general merchandise stores. These gains were partially offset by declines in vehicles, electronics and
appliances, sportinggoods, hobby, musical instrument, and bookstores,on aseasonally adjusted basis. Excludingvehicles and gas, retail sales
were up 2.0% month-over-month, following a 1.4% decline in July. In our view, the August retail sales report indicates that consumers have the
propensity to spend buttheirspending patterns continue tobe influenced by the pandemic, with the deltavirus outbreak driving more people
back to online shopping in the month. Furthermore, we believe high prices fueled by supply chain constraints on bigger ticket items like
vehicles and appliances may now be pressuring sales of those items. The Consumer Confidence index declined to 109.3 in September from
115.2 in August. Consumers remain concerned about the Delta variant and the economic impact of the virus.
Source: US Department of Commerce Source: The Conference Board
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Retail Sales YOY % Change
YO
Y
(
%
)
C
h
a
n
g
e
80
90
100
110
120
130
140
In
d
e
x
L
e
v
e
l
Consumer Confidence
Consumer
7
I
Source: The Conference Board Source: Federal Reserve Bank of Chicago
Economic Activity
The Conference Board’s Leading Economic Index (LEI) increased 0.9% month-over-month in August (slightly above expectations), following a
0.8% increase in July. On a year-over-year basis, the LEI was up 10.0% in August. Accordingto the Conference Board, the LEI’s sharp increase in
August suggests the economy is on a rapidly rising trajectory. The Conference Board is forecasting 6.0% GDP growth for 2021 and 4.0% GDP
growth in 2022. Meanwhile, the Chicago Fed National Activity Index (CFNAI) declined to 0.29 in August from 0.75 in July, pulled down by
production and employment. However, on a 3-month moving average basis, the CFNAI improved to 0.43 in August from 0.36 in July. A reading
above zero signals above-trend economic 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%
Leading Economic Indicators (LEI)
MO
M
(
%
)
C
h
a
n
g
e
8
I
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%
3.0%
6.0%
9.0%
12.0%
15.0%
18.0%
21.0%
24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
YO
Y
(
%
)
C
h
a
n
g
e
Total housing starts increased 3.9% in August to an annual pace of 1,615,000, led by multi-family starts. Single-family starts declined 2.8%in
Augustwhile multi-family starts rose 20.6%. On ayear-over-yearbasis, housingstartswere up17.4%inAugust.Accordingtothe Case-Shiller20-
City home price index, home prices were up 20.0% year-over-yearin July versus up 19.1% year-over-yearin June. Low mortgage rates and tight
supply continue to support prices.
9
I
111111
Source: Institute for Supply Management Source: Federal Reserve
Manufacturing
The Institute for Supply Management (ISM) manufacturing index increased to 61.1 in September from 59.9 in August. The index points to
continued strength in manufacturing, as readings above 50.0 are indicative of expansion in the manufacturing sector. New orders were
particularly strong, increasingto 66.7in Augustfrom 64.9in July, which The Industrial Production index was up 6.0% year-over-year in August,
versus up 6.6% in July. On a month-over-month basis, the Industrial Production index increased 0.4% in August, following a 0.8% increase in
July.CapacityUtilizationincreasedto76.4%inAugustfrom76.2%inJuly but remains well below the long-run average of 79.8%. Chip shortages
and other supply chain bottlenecks continue to weigh on activity in the manufacturing sector.
40
42
44
46
48
50
52
54
56
58
60
62
64
66
Institute of Supply Management Purchasing Manager
Index
EXPANDING
CONTRACTING
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Industrial Production
YO
Y
(
%
)
C
h
a
n
g
e
10
I
Source: US Department of Commerce Source: US Department of Commerce
9/20 12/20 3/21 6/21
25.5% 2.3% 7.4% 7.9%
11.7% 4.0% -0.4% -0.7%
-3.3% -1.7% -1.6% -0.2%
-0.3% -0.2% 0.8% -0.4%
0.1% 0.1% 0.0% 0.0%
33.8% 4.5% 6.3% 6.7%
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
-35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Gross Domestic Product (GDP)
Real US gross domesticproduct (GDP) grew atan annualized rate of 6.7% in the second quarter, following 6.3% growth in the firstquarter. As of
the second quarter, real US GDP had exceeded its pre-pandemic level. The consensus forecast for full year 2021 US gross domestic product
growth has moderated but remains well above the long-run trend growth rate of about1.8%. The current Bloombergconsensus estimates for
2021 and 2022 US GDP growth are 5.9% and 4.1%, respectively, following a 3.4% decline in 2020.
11
I
Federal Reserve
Source: Federal Reserve Source: Bloomberg
Lastyear,the Fedtook awide range of aggressive actions tohelp stabilize and provide liquidity tothe financial markets. The Fed lowered the
fed funds target rate to a range of 0.0%-0.25% and started purchasing Treasury and agency mortgage-backed securities (MBS) 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 Lendingprograms.In June 2021, the Fed announced plans to unwind its corporate credit
facility.The FedisnowwidelyexpectedtostarttaperingtheirTreasuryand agency MBS purchases before this year-end, and stop makingasset
purchases around the middle of next year.
0.00%
0.50%
1.00%
1.50%
2.00%
Effective Federal Funds Rate
Yi
e
l
d
(
%
)
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
Federal Reserve Balance Sheet Assets
In
$
m
i
l
l
i
o
n
s
12
I
Source: Bloomberg Source: Bloomberg
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
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%
US Treasury Yield Curve
Sep-21
Jun-21
Sep-20
Yi
e
l
d
(
%
)
Bond Yields
The treasury yield curve is steeper on a year-over-year basis. At the end of September, the 2-year Treasury yield was about 15 basis points
higher and the 10-Year Treasury yield was about 80 basis points higher, year-over-year. However, the yield curve was less steep than the
historical average. The spread between the 2-year Treasury yield and 10-year Treasury yield was 121 basis points at September month-end
compared to the average historical spread (since 2002) of about 135basis points. We believe the curve remains poised for furthersteepening,
amid a growing economy and improving labor market, while the Fed is expected to slowly normalize monetary policy.
13
I
= L ._____________.I
,... , ...... ,", , , .,,
I ~--·.--.... "' _____ ..
····· --------··········· ····································
7
······ ....
.. .. .. . . .. ..
....
······ ..
······ ······ ······ ······ -------
Section 2|SECTION ||||||||||||||Section 2 |Account Profile
14
Objectives
Chandler Asset Management Performance Objective
Liquid Operating Monies – will be compared to the 3-month T-Bill rate and operate with a maximum
maturity of one year. Long-Term Operating Monies – will be compared to the ICE BAML 1-5 Year Corporate
Government Rated AAA – A Index.
Investment Objectives
The investment objectives of the Orange County Sanitation District are first, to provide safety of principal
to ensure the preservation of capital in the overall portfolio; second, to provide sufficient liquidity to meet
all operating requirements; and third, to earn a commensurate rate of return consistent with the
constraints imposed by the safety and liquidity objectives.
Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent
with the investment policy and California Government Code.
As of September 30, 2021
15
I
Compliance As of September 30, 2021
Category Standard Comment
U.S. Treasuries 10% minimum; 5 years max maturity Complies*
Federal 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; Securities, obligations, participations, or
other instruments of, or issued by, or fully guaranteed as to principal and interest by the US Government , a federal agency, or a US Government-sponsored enterprise Complies
Supranational Obligations "AA" rated or better by a NRSRO; 30% max; 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
Municipal Securities "A" rated or higher by a NRSRO; or as otherwise approved by the Board of Directors; Taxable or tax-exempt municipal bonds issued by any of the 50 states; 10% max; 5% max
issuer; 5 years max maturity Complies
Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% max; 5% max per 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. with AUM >$500 million Complies
Non- Agency Asset-Backed Securities,
Mortgage-Backed Securities, CMOs
"AA" rating category or better by a NRSRO; 20% max(combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its agencies) ; 5 years max maturity; Mortgage pass-
through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate,
or consumer receivable-backed bond
Complies*
Negotiable Certificates of Deposit (NCD)
"A" rating or better long term debt by a NRSRO; or highest short term rating for deposits by a NRSRO; or as otherwise approved by the Board of Directors; 30% max; 5% max issuer;
5 years max maturity; Negotiable certificates of deposit issued by a nationally or state-chartered bank or state of federal savings and loan association, as defined by Section 5102 of
the California Financial Code
Complies
Certificates of Deposit
5% max issuer; 5 years max maturity; Secured (collateralized) time deposits issued by a nationally or state-chartered bank or state or federal savings and loan association, as
defined by Section 5102 of the California Financial Code and having a net operating profit in the two most recently completed fiscal years; Collateral must comply with California
Government Code
Complies
Banker’s Acceptances A-1 rated or highest short term rating by a NRSRO; 40% max; 5% max issuer; 180 days max maturity; Acceptance is eligible for purchase by the Federal Reserve System Complies
Commercial Paper A-1 rated or better by a NRSRO; "A" long term debt rating or better by a NRSRO; Issued by a domestic corporation organized and operating in the U.S. with assets > $500 million;
25% max; 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; or SEC registered adviser with AUM >$500 million and experience > than 5 years; 20% max in Mutual Funds; 10% max per one Mutual
Fund; 20% max per issuer on Money Market Mutual Funds and are not subject to the 10% stipulation Complies
Local Agency Investment Fund (LAIF)No more than the statutory maximum may be 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, and on a continual basis to a level of review pursuant to the policy Complies
Orange County Treasurer's Money
Market Commingled Investment Pool
(OCCIP)
15% max; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool; Investment of OCSD funds in OCCIP would be subject to
investigation and due diligence prior to investing and on continual basis to a level of review pursuant to the policy Complies
Repurchase Agreements 20% max; 102% collateralization Complies
Reverse Repurchase Agreements 5% max, 90 days max maturity 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
Securities Downgrade
If securities owned by the OCSD are downgraded below the quality required by the Investment Policy, it shall be OCSD’s policy to review the credit situation and make a
determination as to whether to sell or retain such securities in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence in the portfolio
will be monitored and reported quarterly to the OCSD General Manager, the
Administration Committee and Board of Directors
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 Funds); 20% max per issuer on Money Market Mutual Funds Complies
Maximum Maturity 5 years max maturity Complies*
Orange County Sanitation District Long Term
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
*The portfolio has twenty (20) securities with maturities greater than 5 years including four (4) CMOs and sixteen (16) MBS. All securities were inherited from the previous manager and complied at time of purchase.
16
I
Portfolio Characteristics
Orange County Sanitation District Long Term
9/30/2021 6/30/2021
Benchmark*Portfolio Portfolio
Average Maturity (yrs)2.70 2.78 2.76
Average Modified Duration 2.61 2.54 2.55
Average Purchase Yield n/a 1.45%1.53%
Average Market Yield 0.54%0.50%0.43%
Average Quality**NR AA/Aa1 AA/Aa1
Total Market Value 686,382,940 685,981,831
*ICE BofA 1-5 Yr AAA-A US Corp & Govt Index
**Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’srespectively.
Multiple securities were purchased in the Treasury, Supranational, Asset Backed, Mortgage Backed (CMO), and Corporate
sectors of the allocation to keep the portfolio invested consistent with Chandler objectives. The purchased securities ranged in
maturity from July 2024 to September 2026. Several Treasury securities were sold to facilitate the additional holding in the
portfolio.
As of September 30, 2021
17
I
Orange County Sanitation District Long Term
Sector Distribution
ABS
6.0%
Agency
24.6%
CMO
0.9%
Corporate
23.6%
Money Market
Fund
0.3%
Mortgage Pass
Thru
0.1%
Negotiable CD
2.5%
Supranational
10.2%
US Treasury
31.8%
September 30, 2021 June 30, 2021
ABS
4.4%
Agency
25.2%
CMO
0.1%
Corporate
21.5%
Money Market
Fund
0.2%
Mortgage Pass
Thru
0.1%
Negotiable CD
2.5%
Supranational
9.0%
US Treasury
35.3%
Commercial
Paper
1.8%
As of September 30, 2021
The sector allocation of the portfolio changed moderately over the quarter. The Corporate and Asset Backed allocation each
increased by 2.1% and 1.6%, respectively, partially offset by the 3.5% decline in the US Treasury allocation. The Commercial
Paper allocation dropped to zero.
18
I
f
Issue Name Investment Type % Portfolio
Government of United States US Treasury 31.80%
Federal National Mortgage Association Agency 10.56%
Federal Home Loan Bank Agency 6.82%
Inter-American Dev Bank Supranational 5.65%
Federal Home Loan Mortgage Corp Agency 5.20%
Intl Bank Recon and Development Supranational 4.54%
Federal Farm Credit Bank Agency 2.05%
Bank of America Corp Corporate 1.72%
JP Morgan Chase & Co Corporate 1.67%
Bank of Montreal Chicago Corporate 1.49%
Bank of Nova Scotia Houston Negotiable CD 1.46%
Charles Schwab Corp/The Corporate 1.42%
US Bancorp Corporate 1.40%
Royal Bank of Canada Corporate 1.36%
Morgan Stanley Corporate 1.29%
Chubb Corporation Corporate 1.24%
Toronto Dominion Holdings Corporate 1.24%
Hyundai Auot Receivables ABS 1.18%
Apple Inc Corporate 1.07%
Toyota Motor Corp Corporate 1.06%
Nordea Bank ABP New York Negotiable CD 1.02%
John Deere ABS ABS 0.99%
Berkshire Hathaway Corporate 0.98%
PNC Financial Services Group Corporate 0.92%
Federal Home Loan Mortgage Corp CMO 0.86%
Wal-Mart Stores Corporate 0.85%
Amazon.com Inc Corporate 0.80%
Intel Corp Corporate 0.78%
Bank of New York Corporate 0.75%
Honeywell Corp Corporate 0.74%
Honda ABS ABS 0.73%
Mercedes-Benz Auto Lease Trust ABS 0.71%
Honda Motor Corporation Corporate 0.63%
Nissan ABS ABS 0.61%
Hyundai Auto Lease Securitization ABS 0.60%
Metlife Inc Corporate 0.54%
ChevronTexaco Corp Corporate 0.54%
Toyota Lease Owner Trust ABS 0.46%
Issuers
Orange County Sanitation District Long Term – Account #10268
As of September 30, 2021
19
I
Issue Name Investment Type % Portfolio
Toyota ABS ABS 0.43%
Merck & Company Corporate 0.31%
BMW Vehicle Lease Trust ABS 0.30%
First American Govt Obligation Fund Class-Z Money Market Fund 0.27%
United Health Group Inc Corporate 0.26%
Salesforce.com Inc Corporate 0.20%
Deere & Company Corporate 0.20%
BlackRock Inc/New York Corporate 0.16%
Federal National Mortgage Association Mortgage Pass Thru 0.07%
AMRESCO Residental Securities Corp CMO 0.02%
Federal National Mortgage Association CMO 0.02%
GNMA Mortgage Pass Thru 0.01%
SLM Corp ABS 0.00%
Federal Home Loan Mortgage Corp Mortgage Pass Thru 0.00%
TOTAL 100.00%
Issuers
Orange County Sanitation District Long Term – Account #10268
As of September 30, 2021
20
I
AAA AA A <A NR
09/30/21 14.4%65.2%15.2%1.3%3.9%
06/30/21 12.1%69.6%13.6%1.7%2.9%
Source: S&P Ratings
September 30, 2021 vs. June 30, 2021
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
AAA AA A <A NR
9/30/2021 6/30/2021
Quality Distribution
Orange County Sanitation District Long Term
As of September 30, 2021
21
I
-
■ ■
AAA AA A <A NR
09/30/21 74.2%4.9%18.7%0.0%2.2%
06/30/21 77.6%4.0%17.1%0.0%1.3%
Source: Moody’s Ratings
September 30, 2021 vs. June 30, 2021
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
AAA AA A <A NR
9/30/2021 6/30/2021
Quality Distribution
Orange County Sanitation District Long Term
As of September 30, 2021
The duration of the portfolio was stable, currently 2.54 compared to 2.55 at the end of the prior quarter. The Chandler team is
focused on the term structure of the portfolio, relative to the benchmark, and will continue to keep the overall duration of the
strategy close to the benchmark in the coming quarter.
22
I
--
■ ■
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 BofA 1-5 Yr AAA-A US Corp & Govt Index
Portfolio Compared to the Benchmark as of September 30, 2021
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+
Portfolio 1.2% 2.7% 9.2% 22.6% 26.6% 22.9% 14.8% 0.0%
Benchmark* 0.1% 0.1% 1.6% 33.0% 27.7% 20.1% 17.4% 0.0%
*ICE BofA 1-5 Yr AAA-A US Corp & Govt Index
Duration Distribution
Orange County Sanitation District Long Term
As of September 30, 2021
23
I
--II_
■ ■
-0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
12 months 2 years 3 years 5 years 10 years Since Inception
KƌĂŶŐĞŽƵŶƚLJ^ĂŶŝƚĂƚŝŽŶŝƐƚƌŝĐƚ>ŽŶŐdĞƌŵ / ŽĨϭͲϱzƌͲh^ŽƌƉΘ'Žǀƚ/ŶĚĞdž
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 0.02% -0.08% 2.27% 3.34% 2.09% N/A 1.96%
ICE BofA 1-5 Yr AAA-A US Corp & Govt Index 0.01% -0.16% 2.26% 3.42% 2.01% N/A 1.93%
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 September 30, 2021
24
I
■ ■
Compliance As of September 30, 2021
Category Standard Comment
U.S. Treasuries 10% minimum; 1 year max maturity Complies
Federal 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; Securities, obligations,
participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by the US Government , a federal agency, or a US Government-
sponsored enterprise
Complies
Supranational Obligations
"AA" rated or better by a NRSRO; 30% max; 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
Municipal Securities "A" rated or higher by a NRSRO; or as otherwise approved by the Board of Directors; Taxable or tax-exempt municipal bonds issued by any of the 50 states; 10% max;
5% max issuer; 1 year max maturity Complies
Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% max; 5% max per 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. with AUM >$500 million Complies
Non- Agency Asset-Backed Securities,
Mortgage-Backed Securities, CMOs
"AA" rating category or better by a NRSRO; 20% max (combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its agencies) ; 1 year max maturity;
Mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer
receivable pass-through certificate, or consumer receivable-backed bond
Complies
Negotiable Certificates of Deposit (NCD)
"A" rating or better long term debt by a NRSRO; or highest short term rating for deposits by a NRSRO; or as otherwise approved by the Board of Directors; 30% max;
5% max issuer; 1 year max maturity; Negotiable certificates of deposit issued by a nationally or state-chartered bank or state of federal savings and loan association,
as defined by Section 5102 of the California Financial Code
Complies
Certificates of Deposit
5% max issuer; 1 year max maturity; Secured (collateralized) time deposits issued by a nationally or state-chartered bank or state or federal savings and loan
association, as defined by Section 5102 of the California Financial Code and having a net operating profit in the two most recently completed fiscal years; Collateral
must comply with California Government Code
Complies
Banker’s Acceptances A-1 rated or highest short term rating by a NRSRO; 40% max; 5% max issuer; 180 days max maturity; Acceptance is eligible for purchase by the Federal Reserve System Complies
Commercial Paper A-1 rated or better by a NRSRO; "A" long term debt rating or better by a NRSRO; Issued by a domestic corporation organized and operating in the U.S. with assets >
$500 million; 25% max; 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; or SEC registered adviser with AUM >$500 million and experience > than 5 years; 20% max in Mutual Funds; 10% max
per one Mutual Fund; 20% max per issuer on Money Market Mutual Funds and are not subject to the 10% stipulation Complies
Local Agency Investment Fund (LAIF)No more than the statutory maximum may be 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, and on a continual basis to a level of review pursuant to the policy Complies
Orange County Treasurer's Money
Market Commingled Investment Pool
(OCCIP)
15% max; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool; Investment of OCSD funds in OCCIP would be
subject to investigation and due diligence prior to investing and on continual basis to a level of review pursuant to the policy Complies
Repurchase Agreements 20% max; 102% collateralization Complies
Reverse Repurchase Agreements 5% max, 90 days max maturity 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
Securities Downgrade
If securities owned by the OCSD are downgraded below the quality required by the Investment Policy, it shall be OCSD’s policy to review the credit situation and make
a determination as to whether to sell or retain such securities in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence
in the portfolio will be monitored and reported quarterly to the OCSD General Manager, the
Administration Committee and Board of Directors
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 Funds); 20% max per issuer on Money Market Mutual Funds Complies
Maximum Maturity 1 year max maturity Complies
Orange County Sanitation District Liquid
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
25
I
Portfolio Characteristics
Orange County Sanitation District Liquid
9/30/2021 6/30/2021
Benchmark*Portfolio Portfolio
Average Maturity (yrs)0.16 0.45 0.35
Average Modified Duration 0.15 0.45 0.35
Average Purchase Yield n/a 0.08%0.08%
Average Market Yield 0.04%0.09%0.09%
Average Quality**NR AA+/Aaa AA+/Aaa
Total Market Value 129,858,408 207,810,854
*ICE BofA 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.
Several purchases were made in the Treasury, Negotiable Certificates of Deposit, and Corporate sectors to keep the portfolio
invested consistent with the strategy and to account for forecasted liquidity needs of OC Sanitation. The purchased securities
ranged in maturity from September 2021 to June 2022. Two securities were sold and multiple matured to facilitate the new
holdings in the portfolio and to account for the net $78 million cash distributions during the quarter.
As of September 30, 2021
26
I
Orange County Sanitation District Liquid
Sector Distribution
Commercial
Paper
6.2%Corporate
6.3%
Negotiable CD
8.5%
US Treasury
79.0%
September 30, 2021 June 30, 2021
Commercial
Paper
3.9%Corporate
3.0%
Money Market
Fund
6.9%
Negotiable CD
3.9%
US Treasury
78.8%
Agency
3.6%
As of September 30, 2021
The sector allocation changed moderately during the quarter. The lack of attractive investment opportunities in the Agency
sector has taken the allocation down to zero compared to 3.6% of the portfolio as of June 30, 2021. The allocation to the
Negotiable Certificate of Deposit, Corporate, and Commercial Paper portions of the allocation all increased moderately during
the quarter.
27
I
Issue Name Investment Type % Portfolio
Government of United States US Treasury 79.04%
Toyota Motor Corp Commercial Paper 3.08%
Bank of Nova Scotia Houston Negotiable CD 2.31%
Svenska Handelsbanken NY Negotiable CD 2.31%
Nordea Bank ABP New York Negotiable CD 2.31%
Truist Financial Corporation Corporate 1.58%
Morgan Stanley Corporate 1.58%
Honda Motor Corporation Corporate 1.57%
Caterpillar Inc Corporate 1.56%
Toronto Dominion Holdings Negotiable CD 1.54%
Rabobank Nederland NV NY Commercial Paper 1.54%
MUFG Bank Ltd/NY Commercial Paper 1.54%
First American Govt Obligation Fund Class-Z Money Market Fund 0.03%
TOTAL 100.00%
Issuers
Orange County Sanitation District Liquid – Account #10282
As of September 30, 2021
28
I
AAA AA A <A NR
09/30/21 17.0%76.7%4.7%1.6%0.0%
06/30/21 28.6%68.5%2.0%1.0%0.0%
Source: S&P Ratings
September 30, 2021 vs. June 30, 2021
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
AAA AA A <A NR
9/30/2021 6/30/2021
Quality Distribution
Orange County Sanitation District Liquid
As of September 30, 2021
29
I
I -
■ ■
AAA AA A <A NR
09/30/21 93.7%0.0%6.3%0.0%0.0%
06/30/21 97.0%0.0%3.0%0.0%0.0%
Source: Moody’s Ratings
September 30, 2021 vs. June 30, 2021
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
AAA AA A <A NR
9/30/2021 6/30/2021
Quality Distribution
Orange County Sanitation District Liquid
As of September 30, 2021
30
I
■ ■
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 BofA 3-Month US Treasury Bill Index
Portfolio Compared to the Benchmark as of September 30, 2021
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 1.5 1.5 - 2 2 - 2.5 2.5 - 3 3+
Portfolio 1.6% 60.0% 38.4% 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 BofA 3-Month US Treasury Bill Index
Duration Distribution
Orange County Sanitation District Liquid
As of September 30, 2021
The duration of the portfolio increased to 0.45 compared to 0.35 in the prior quarter. The Chandler team will continue to look
for opportunities to lengthen the duration of the portfolio consistent with the upcoming cash flows needs of OC Sanitation.
31
I
■ ■
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
12 months 2 years 3 years 5 years 10 years Since Inception
KƌĂŶŐĞŽƵŶƚLJ^ĂŶŝƚĂƚŝŽŶŝƐƚƌŝĐƚ>ŝƋƵŝĚ / ŽĨϯͲDŽŶƚŚh^dƌĞĂƐƵƌLJŝůů/ŶĚĞdž
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% 0.11% 0.72% 1.31% 1.26% N/A 1.00%
ICE BofA 3-Month US Treasury Bill Index 0.02% 0.07% 0.58% 1.18% 1.16% N/A 0.89%
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 September 30, 2021
32
I
■ ■
Compliance As of September 30, 2021
Category Standard Comment
Treasury Issues 5 years maximum maturity Complies
Supranational "AA" or better by 1 of 3 NRSROs; 30% maximum; 5% max; 5 years maturity; Includes only: IADB, IBRD, and IFC per CGC Complies
U.S. Agencies 20% max issuer; 5 years maximum maturity Complies
U.S. Corporate (MTNs)"A" or better long term rating by 1 of 3 NRSROs; 30% maximum; 5% max issuer; 5 years max maturity Complies*
Municipal Securities "A" or higher by 1 of 3 NRSROS; 10% maximum; 5% max issuer; 5 years maximum maturity Complies
Asset Backed/ CMOs/ Mortgage-backed "AA" or better by 1 of 3 NRSROs; "A" or higher issuer rating by 1 of 3 NRSROs; 20% maximum; 5% max issuer (excluding MBS/govt agency); 5 years max
maturity Complies
Negotiable CDs "A" or better on its long term debt by 1 of 3 NRSROs ; "A1/P1" or highest short term ratings by 1 of 3 NRSROs; 30% maximum; 5% max issuer; 5 years max
maturity Complies
CDs/ TDS 5% max issuer; 5 years max maturity Complies
Banker’s Acceptances A-1, or equivalent highest short term rating by 1 of 3 NRSROS; 40% maximum; 5% max issuer; 180 days max maturity Complies
Commercial Paper A-1, or equivalent by 1 of 3 NRSROS; "A" or better by 1 of 3 NRSROs, if long term debt issued; 25% maximum; 5% max issuer; 270 days max maturity Complies
Money Market Fund Highest rating by 2 of 3 NRSROs; 20% maximum; 10% max issuer Complies
Repurchase Agreements 102% collateralization Complies
Reverse Repurchase Agreements 5% maximum, 90 days max maturity Complies
LAIF Not used by investment adviser Complies
Avg Duration Not to exceed 60 months - (80% to 120% of the benchmark)Complies
Maximum Maturity 5 years maximum maturity Complies
OCSD Lehman Exposure
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
* Account holds $2 million face value (cusip 525ESC0Y6) and $600,000 face value (cusip 525ESC1B7) of defaulted Lehman Bros Holdings that were purchased by the previous manager. Complied at time of purchase.
33
I
Portfolio Characteristics
OC SAN Lehman Exposure
9/30/2021
Portfolio
6/30/2021
Portfolio
Average Maturity (yrs)8.85 9.11
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 43,301 43,821
*Portfolio is S&P and Moody’s, respectively.
As of September 30, 2021
34
I
SECTION ||||||||||||||Section 3 |Consolidated Information
35
Portfolio Characteristics
Orange County Sanitation District Consolidated
9/30/2021 6/30/2021
Portfolio Portfolio
Average Maturity (yrs)2.41 2.20
Modified Duration 2.20 2.04
Average Purchase Yield 1.23%1.19%
Average Market Yield 0.43%0.35%
Average Quality*AA+/Aa1 AA+/Aa1
Total Market Value 816,284,650 893,836,506
* Portfolio is S&P and Moody’s respectively.
As of September 30, 2021
36
I
Orange County Sanitation District Consolidated
Sector Distribution
ABS
5.1%
Agency
20.7%
CMO
0.8%
Commercial
Paper
1.0%
Corporate
20.9%Money Market
Fund
0.2%
Mortgage Pass
Thru
0.1%
Negotiable CD
3.4%
Supranational
8.6%
US Treasury
39.3%
September 30, 2021 June 30, 2021
ABS
3.4%
Agency
20.2%
CMO
0.1%
Commercial
Paper
2.2%
Corporate
17.2%Money Market
Fund
1.7%
Mortgage Pass
Thru
0.1%
Negotiable CD
2.8%
Supranational
6.9%
US Treasury
45.4%
As of September 30, 2021
37
I
SECTION ||||||||||||||Section 4 |Portfolio Holdings
38
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
43815HAC1 Honda Auto Receivables Trust 2018-3 A3
2.950% Due 08/22/2022
198,609.44 08/21/2018
2.98%
198,582.19
198,603.35
100.22
0.22%
199,055.50
162.75
0.03%
452.15
Aaa / NR
AAA
0.89
0.08
47788EAC2 John Deere Owner Trust 2018-B A3
3.080% Due 11/15/2022
181,085.41 07/18/2018
3.10%
181,071.68
181,081.83
100.19
0.18%
181,431.82
247.89
0.03%
349.99
Aaa / NR
AAA
1.13
0.07
58770FAC6 Mercedes Benz Auto Lease Trust 2020-A A3
1.840% Due 12/15/2022
1,534,136.34 01/21/2020
1.85%
1,533,934.14
1,534,051.69
100.51
0.20%
1,541,915.94
1,254.58
0.22%
7,864.25
Aaa / AAA
NR
1.21
0.31
65479GAD1 Nissan Auto Receivables Trust 2018-B A3
3.060% Due 03/15/2023
678,775.43 07/17/2018
3.08%
678,753.45
678,773.12
100.49
0.41%
682,099.40
923.13
0.10%
3,326.28
Aaa / AAA
NR
1.45
0.18
78445JAA5 SLM Student Loan Trust 2008-9 A
1.629% Due 04/25/2023
9,806.92 08/22/2008
1.69%
9,767.12
9,802.67
100.76
1.38%
9,881.72
30.17
0.00%
79.05
Baa3 / B
B
1.57
0.05
44891VAC5 Hyundai Auto Lease Trust 2021-B A3
0.330% Due 06/17/2024
4,155,000.00 06/08/2021
0.34%
4,154,376.75
4,154,457.98
99.90
0.39%
4,150,815.92
609.40
0.60%
(3,642.06)
Aaa / AAA
NR
2.72
1.63
65479JAD5 Nissan Auto Receivables Owner 2019-C A3
1.930% Due 07/15/2024
3,474,940.81 10/16/2019
1.94%
3,474,757.33
3,474,832.66
101.00
0.22%
3,509,655.47
2,980.73
0.51%
34,822.81
Aaa / AAA
NR
2.79
0.58
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
2,959,835.83
100.18
0.25%
2,965,363.52
578.84
0.43%
5,527.69
Aaa / AAA
NR
3.04
0.93
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
3,234,677.10
100.11
0.28%
3,238,613.50
432.23
0.47%
3,936.40
NR / AAA
AAA
3.05
1.20
89239CAC3 Toyota Lease Owner Trust 2021-B A3
0.420% Due 10/21/2024
3,185,000.00 07/27/2021
0.42%
3,184,957.00
3,184,959.86
100.00
0.42%
3,184,974.52
408.74
0.46%
14.66
Aaa / NR
AAA
3.06
1.96
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
1,479,851.76
100.21
0.30%
1,483,105.04
335.47
0.22%
3,253.28
Aaa / NR
AAA
3.13
0.97
58769KAD6 Mercedes-Benz Auto Lease Trust 2021-B A3
0.400% Due 11/15/2024
3,315,000.00 06/22/2021
0.40%
3,314,749.72
3,314,775.02
99.98
0.41%
3,314,220.98
589.33
0.48%
(554.04)
NR / AAA
AAA
3.13
1.80
09690AAC7 BMW Vehicle Lease Trust 2021-2 A3
0.330% Due 12/26/2024
2,070,000.00 09/08/2021
0.34%
2,069,786.38
2,069,790.49
99.91
0.38%
2,068,085.25
303.60
0.30%
(1,705.24)
Aaa / NR
AAA
3.24
1.77
43813GAC5 Honda Auto Receivables Trust 2021-1 A3
0.270% Due 04/21/2025
1,605,000.00 02/17/2021
0.27%
1,604,970.63
1,604,976.37
99.95
0.31%
1,604,232.81
120.38
0.23%
(743.56)
Aaa / NR
AAA
3.56
1.32
47788UAC6 John Deere Owner Trust 2021-A A3
0.360% Due 09/15/2025
2,300,000.00 03/02/2021
0.37%
2,299,557.94
2,299,626.85
99.91
0.41%
2,298,035.80
368.00
0.33%
(1,591.05)
Aaa / NR
AAA
3.96
1.78
44933LAC7 Hyundai Auto Receivables Trust 2021-A A3
0.380% Due 09/15/2025
2,100,000.00 04/20/2021
0.38%
2,099,779.08
2,099,810.04
99.96
0.40%
2,099,145.32
354.67
0.31%
(664.72)
NR / AAA
AAA
3.96
1.75
44934KAC8 Hyundai Auto Receivables Trust 2021-B A3
0.380% Due 01/15/2026
6,040,000.00 07/20/2021
0.39%
6,038,666.97
6,038,742.64
99.80
0.48%
6,028,113.28
1,020.09
0.88%
(10,629.36)
NR / AAA
AAA
4.30
2.08
As of September 30, 2021
39
I
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
47789QAC4 John Deere Owner Trust 2021-B A3
0.520% Due 03/16/2026
2,820,000.00 07/13/2021
0.52%
2,819,748.46
2,819,762.05
99.93
0.55%
2,818,107.78
651.73
0.41%
(1,654.27)
Aaa / NR
AAA
4.46
2.41
TOTAL ABS 41,342,354.35 0.65%
41,337,530.15
41,338,411.31 0.37%
41,376,853.57
11,371.73
6.03%
38,442.26
Aaa / AAA
Aaa
3.29
1.51
Agency
3135G0T45 FNMA Note
1.875% Due 04/05/2022
5,000,000.00 05/05/2017
1.99%
4,972,500.00
4,997,147.24
100.92
0.08%
5,046,025.00
45,833.33
0.74%
48,877.76
Aaa / AA+
AAA
0.51
0.51
3133ELYR9 FFCB Note
0.250% Due 05/06/2022
8,850,000.00 04/30/2020
0.31%
8,838,760.50
8,846,658.94
100.11
0.07%
8,859,496.05
8,911.46
1.29%
12,837.11
Aaa / AA+
AAA
0.60
0.60
3135G0T94 FNMA Note
2.375% Due 01/19/2023
5,000,000.00 Various
2.78%
4,910,990.00
4,975,737.55
102.83
0.20%
5,141,330.00
23,750.00
0.75%
165,592.45
Aaa / AA+
AAA
1.30
1.28
313383QR5 FHLB Note
3.250% Due 06/09/2023
5,000,000.00 08/28/2018
2.87%
5,083,350.00
5,029,423.27
105.08
0.24%
5,254,050.00
50,555.56
0.77%
224,626.73
Aaa / AA+
NR
1.69
1.64
3137EAEN5 FHLMC Note
2.750% Due 06/19/2023
10,000,000.00 Various
2.84%
9,956,500.00
9,984,904.53
104.29
0.25%
10,429,080.00
77,916.66
1.53%
444,175.47
Aaa / AA+
AAA
1.72
1.68
3135G05G4 FNMA Note
0.250% Due 07/10/2023
6,775,000.00 07/08/2020
0.32%
6,760,433.75
6,766,393.28
99.97
0.26%
6,773,285.93
3,810.94
0.99%
6,892.65
Aaa / AA+
AAA
1.78
1.77
313383YJ4 FHLB Note
3.375% Due 09/08/2023
10,000,000.00 Various
2.89%
10,211,831.00
10,088,133.75
106.03
0.26%
10,602,780.00
21,562.50
1.55%
514,646.25
Aaa / AA+
NR
1.94
1.89
3130A0F70 FHLB Note
3.375% Due 12/08/2023
10,000,000.00 Various
2.79%
10,269,043.75
10,119,145.44
106.66
0.32%
10,665,830.01
105,937.50
1.57%
546,684.57
Aaa / AA+
AAA
2.19
2.11
3135G0V34 FNMA Note
2.500% Due 02/05/2024
5,000,000.00 02/27/2019
2.58%
4,980,850.00
4,990,897.64
105.02
0.35%
5,250,775.00
19,444.44
0.77%
259,877.36
Aaa / AA+
AAA
2.35
2.28
3130A1XJ2 FHLB Note
2.875% Due 06/14/2024
11,110,000.00 Various
1.96%
11,589,031.30
11,369,351.58
106.45
0.47%
11,826,861.64
94,936.49
1.74%
457,510.06
Aaa / AA+
NR
2.71
2.60
3133EKWV4 FFCB Note
1.850% Due 07/26/2024
5,000,000.00 08/13/2019
1.65%
5,048,280.00
5,027,477.94
103.70
0.53%
5,184,790.00
16,701.39
0.76%
157,312.06
Aaa / AA+
AAA
2.82
2.75
3130A2UW4 FHLB Note
2.875% Due 09/13/2024
2,500,000.00 09/12/2019
1.73%
2,635,950.00
2,580,215.71
106.89
0.52%
2,672,157.50
3,593.75
0.39%
91,941.79
Aaa / AA+
AAA
2.96
2.85
3135G0X24 FNMA Note
1.625% Due 01/07/2025
10,000,000.00 Various
1.28%
10,157,936.40
10,108,207.98
103.39
0.58%
10,338,850.00
37,916.66
1.51%
230,642.02
Aaa / AA+
AAA
3.27
3.18
3137EAEP0 FHLMC Note
1.500% Due 02/12/2025
12,335,000.00 Various
1.20%
12,510,182.05
12,454,412.57
102.85
0.64%
12,686,350.14
25,183.96
1.85%
231,937.57
Aaa / AA+
AAA
3.37
3.28
3130A4CH3 FHLB Note
2.375% Due 03/14/2025
5,225,000.00 03/19/2020
1.18%
5,526,848.25
5,433,971.87
105.86
0.66%
5,531,179.78
5,859.98
0.81%
97,207.91
Aaa / AA+
AAA
3.45
3.33
As of September 30, 2021
40
I
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
3135G03U5 FNMA Note
0.625% Due 04/22/2025
14,000,000.00 Various
0.63%
13,996,711.60
13,997,687.07
99.77
0.69%
13,967,478.00
38,645.84
2.04%
(30,209.07)
Aaa / AA+
AAA
3.56
3.51
3135G04Z3 FNMA Note
0.500% Due 06/17/2025
9,905,000.00 06/17/2020
0.54%
9,884,496.65
9,889,768.62
99.22
0.71%
9,828,206.54
14,307.22
1.43%
(61,562.08)
Aaa / AA+
AAA
3.72
3.67
3137EAEU9 FHLMC Note
0.375% Due 07/21/2025
5,030,000.00 07/21/2020
0.48%
5,004,950.60
5,010,924.55
98.65
0.74%
4,962,110.09
3,667.71
0.72%
(48,814.46)
Aaa / AA+
AAA
3.81
3.77
3135G05X7 FNMA Note
0.375% Due 08/25/2025
7,945,000.00 08/25/2020
0.47%
7,907,817.40
7,915,971.48
98.43
0.78%
7,820,350.90
2,979.38
1.14%
(95,620.58)
Aaa / AA+
AAA
3.90
3.86
3137EAEX3 FHLMC Note
0.375% Due 09/23/2025
7,660,000.00 09/23/2020
0.44%
7,636,943.40
7,641,633.09
98.34
0.80%
7,532,483.98
638.33
1.10%
(109,149.11)
Aaa / AA+
AAA
3.98
3.94
3135G06G3 FNMA Note
0.500% Due 11/07/2025
8,255,000.00 11/09/2020
0.57%
8,225,447.10
8,230,689.05
98.67
0.83%
8,144,894.81
16,510.00
1.19%
(85,794.24)
Aaa / AA+
AAA
4.11
4.04
TOTAL Agency 164,590,000.00 1.45%
166,108,853.75
165,458,753.15 0.49%
168,518,365.37
618,663.10
24.64%
3,059,612.22
Aaa / AA+
Aaa
2.72
2.66
CMO
3137BFE98 FHLMC K041 A2
3.171% Due 10/25/2024
5,000,000.00 07/01/2021
0.72%
5,378,515.62
5,350,975.57
106.92
0.76%
5,346,160.00
13,212.50
0.78%
(4,815.57)
Aaa / AAA
AAA
3.07
2.86
03215PFN4 AMRESCO Residential Securities 1999-1 A
1.025% Due 06/25/2029
119,021.64 05/20/2011
4.48%
89,377.81
106,351.11
99.21
1.37%
118,082.56
20.34
0.02%
11,731.45
NR / BBB
BBB
7.74
0.03
3133TCE95 FHLMC FSPC E3 A
3.801% Due 08/15/2032
3,755.75 03/11/1998
3.76%
3,759.69
3,757.00
100.58
2.06%
3,777.54
11.90
0.00%
20.54
Aaa / AA+
AAA
10.88
0.86
31397QRE0 FNMA FNR 2011-3 FA
0.765% Due 02/25/2041
101,078.15 12/20/2010
0.76%
101,046.58
101,057.78
101.91
0.31%
103,008.74
12.89
0.02%
1,950.96
Aaa / AA+
AAA
19.42
0.14
31394JY35 FHLMC FSPC T-58 2A
6.500% Due 09/25/2043
500,242.49 06/09/2011
5.40%
566,524.61
545,376.84
114.10
0.83%
570,786.69
541.93
0.08%
25,409.85
Aaa / AA+
AAA
22.00
2.53
TOTAL CMO 5,724,098.03 1.21%
6,139,224.31
6,107,518.30 0.77%
6,141,815.53
13,799.56
0.90%
34,297.23
Aaa / AAA
Aaa
5.20
2.73
Corporate
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
2,500,245.14
100.64
0.22%
2,516,047.50
9,750.00
0.37%
15,802.36
A1 / A
AA-
0.36
0.27
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
997,550.39
100.70
0.27%
1,006,979.00
3,208.33
0.15%
9,428.61
A2 / A
A+
0.38
0.30
As of September 30, 2021
41
I
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
084664BT7 Berkshire Hathaway Note
3.000% Due 05/15/2022
4,000,000.00 05/23/2017
2.30%
4,131,120.00
4,016,326.79
101.72
0.25%
4,068,664.00
45,333.33
0.60%
52,337.21
Aa2 / AA
A+
0.62
0.62
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
4,181,173.53
102.30
0.38%
4,264,807.79
49,275.26
0.63%
83,634.26
A3 / A
A
1.09
0.91
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
1,998,060.81
103.23
0.22%
2,064,694.00
10,766.67
0.30%
66,633.19
A1 / AA-
AA-
1.32
1.21
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
6,742,650.69
102.90
0.29%
6,945,993.00
32,793.75
1.02%
203,342.31
A2 / A
A
1.32
1.22
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
2,497,426.46
103.28
0.31%
2,582,047.50
12,701.39
0.38%
84,621.04
A1 / A
AA-
1.33
1.23
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
1,980,981.13
103.38
0.37%
2,067,510.00
2,700.00
0.30%
86,528.87
A3 / A
A
1.45
1.43
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
2,482,476.76
103.13
0.32%
2,578,177.50
3,055.56
0.38%
95,700.74
Aa2 / AA
A+
1.45
1.27
58933YAF2 Merck & Co Note
2.800% Due 05/18/2023
2,000,000.00 10/26/2018
3.41%
1,948,640.00
1,981,632.85
103.93
0.38%
2,078,592.00
20,688.89
0.31%
96,959.15
A1 / A+
A+
1.63
1.59
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
4,933,776.55
103.43
0.35%
5,171,435.00
49,875.00
0.76%
237,658.45
A2 / A-
AA-
1.63
1.43
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
4,997,746.07
105.03
0.36%
5,251,360.00
54,930.56
0.77%
253,613.93
A2 / A
A+
1.69
1.56
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
3,477,928.11
104.23
0.33%
3,648,120.00
30,092.90
0.54%
170,191.89
Aa2 / AA-
NR
1.73
1.45
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
3,879,650.17
105.13
0.29%
4,079,047.88
34,812.22
0.60%
199,397.71
Aa2 / AA
AA
1.74
1.61
02665WCJ8 American Honda Finance Note
3.450% Due 07/14/2023
845,000.00 07/11/2018
3.49%
843,538.15
844,478.25
105.24
0.50%
889,298.28
6,235.40
0.13%
44,820.03
A3 / A-
NR
1.79
1.74
89114QC48 Toronto Dominion Bank Note
3.500% Due 07/19/2023
5,000,000.00 02/26/2019
3.04%
5,094,200.00
5,038,573.78
105.55
0.41%
5,277,510.00
35,000.00
0.77%
238,936.22
Aa2 / AA-
AA
1.80
1.75
02665WCQ2 American Honda Finance Note
3.625% Due 10/10/2023
2,000,000.00 Various
3.64%
1,998,320.00
1,999,310.29
106.24
0.53%
2,124,884.00
34,437.50
0.31%
125,573.71
A3 / A-
NR
2.03
1.94
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
1,250,099.04
106.62
0.38%
1,332,758.75
21,418.40
0.20%
82,659.71
A2 / A
A
2.03
1.95
As of September 30, 2021
42
I
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
06051GHF9 Bank of America Corp Callable Note 1X 3/5/2023
3.550% Due 03/05/2024
6,675,000.00 Various
2.75%
6,770,625.75
6,722,215.57
104.21
0.59%
6,956,157.68
17,113.96
1.02%
233,942.11
A2 / A-
AA-
2.43
1.40
09247XAL5 Blackrock Inc Note
3.500% Due 03/18/2024
1,000,000.00 05/09/2019
2.69%
1,036,330.00
1,018,441.94
107.17
0.57%
1,071,742.00
1,263.89
0.16%
53,300.06
Aa3 / AA-
NR
2.47
2.38
808513BN4 Charles Schwab Corp Callable Note Cont 2/18/2024
0.750% Due 03/18/2024
2,785,000.00 03/16/2021
0.77%
2,783,607.50
2,783,857.79
100.47
0.55%
2,798,156.34
754.27
0.41%
14,298.55
A2 / A
A
2.47
2.36
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
5,013,096.83
105.77
0.50%
5,288,625.00
55,902.78
0.78%
275,528.17
A1 / A+
A+
2.61
2.35
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
3,009,021.59
105.56
0.56%
3,166,740.00
33,250.00
0.47%
157,718.41
Aa1 / AA+
NR
2.61
2.35
023135BW5 Amazon.com Inc Note
0.450% Due 05/12/2024
5,490,000.00 05/10/2021
0.50%
5,481,984.60
5,483,023.09
99.77
0.54%
5,477,405.94
9,538.88
0.80%
(5,617.15)
A1 / AA
AA-
2.62
2.59
89114QCA4 Toronto Dominion Bank Note
2.650% Due 06/12/2024
3,000,000.00 06/12/2019
2.65%
3,000,570.00
3,000,307.64
105.21
0.70%
3,156,447.00
24,070.83
0.46%
156,139.36
A1 / A
AA-
2.70
2.60
02665WCZ2 American Honda Finance Note
2.400% Due 06/27/2024
1,219,000.00 07/10/2019
2.49%
1,213,843.63
1,216,154.32
104.36
0.79%
1,272,152.06
7,639.07
0.19%
55,997.74
A3 / A-
NR
2.74
2.65
79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/2022
0.625% Due 07/15/2024
1,350,000.00 06/29/2021
0.64%
1,349,311.50
1,349,362.24
100.19
0.39%
1,352,506.95
1,851.56
0.20%
3,144.71
A2 / A+
NR
2.79
0.79
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
6,546,914.90
104.90
0.77%
6,818,474.00
34,531.25
1.00%
271,559.10
A2 / A
AA-
2.79
2.69
46647PAU0 JP Morgan Chase & Co Callable Note 1X 7/23/2023
3.797% Due 07/23/2024
2,500,000.00 09/12/2019
2.10%
2,632,175.00
2,576,530.22
105.68
0.64%
2,642,082.50
17,930.28
0.39%
65,552.28
A2 / A-
AA-
2.81
1.75
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
7,259,761.36
103.55
0.93%
7,528,026.84
28,979.03
1.10%
268,265.48
A1 / AA-
AA-
3.31
3.11
037833AZ3 Apple Inc Note
2.500% Due 02/09/2025
3,922,000.00 07/14/2021
0.81%
4,154,496.16
4,140,767.48
105.11
0.95%
4,122,386.75
14,162.78
0.60%
(18,380.73)
Aa1 / AA+
NR
3.36
3.22
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
2,160,874.23
107.37
0.98%
2,147,324.00
2,800.00
0.31%
(13,550.23)
A3 / A
A
3.46
3.29
06367WB85 Bank of Montreal Note
1.850% Due 05/01/2025
7,000,000.00 08/12/2021
0.96%
7,226,940.00
7,219,230.07
102.86
1.03%
7,200,529.00
53,958.33
1.06%
(18,701.07)
A2 / A-
AA-
3.59
3.44
61747YEA9 Morgan Stanley Callable Note Cont 5/30/2024
0.790% Due 05/30/2025
8,885,000.00 05/26/2021
0.73%
8,889,710.25
8,889,316.38
99.68
0.91%
8,856,479.15
23,397.17
1.29%
(32,837.23)
A1 / BBB+
A
3.67
2.63
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
5,087,889.33
101.60
0.89%
5,080,130.00
22,500.00
0.74%
(7,759.33)
A2 / A
A
3.67
3.48
As of September 30, 2021
43
I
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
78015K7H1 Royal Bank of Canada Note
1.150% Due 06/10/2025
2,500,000.00 Various
0.90%
2,527,720.00
2,522,186.93
100.15
1.11%
2,503,867.50
8,864.58
0.37%
(18,319.43)
A2 / A
AA-
3.70
3.60
06051GHY8 Bank of America Corp Callable Note Cont 2/13/2025
2.015% Due 02/13/2026
2,500,000.00 03/04/2021
1.07%
2,583,450.00
2,573,869.22
102.51
1.25%
2,562,837.50
6,716.67
0.37%
(11,031.72)
A2 / A-
AA-
4.38
3.25
46647PBH8 JP Morgan Chase & Co Callable Note Mthly 3/13/2025
2.005% Due 03/13/2026
3,500,000.00 Various
1.24%
3,602,345.00
3,589,208.53
102.40
1.29%
3,583,825.00
3,508.75
0.52%
(5,383.53)
A2 / A-
AA-
4.45
3.33
91324PEC2 United Health Group Inc Callable Note Cont 4/15/2026
1.150% Due 05/15/2026
1,755,000.00 Various
1.08%
1,760,683.15
1,760,339.36
100.03
1.14%
1,755,498.42
7,400.25
0.26%
(4,840.94)
A3 / A+
A
4.62
4.39
89236TJK2 Toyota Motor Credit Corp Note
1.125% Due 06/18/2026
7,285,000.00 06/15/2021
1.13%
7,281,794.60
7,281,978.92
99.40
1.26%
7,241,078.74
23,448.59
1.06%
(40,900.18)
A1 / A+
A+
4.72
4.56
06051GJD2 Bank of America Corp Callable Note Cont 6/19/2025
1.319% Due 06/19/2026
2,250,000.00 06/24/2021
1.26%
2,254,432.50
2,254,200.75
99.98
1.32%
2,249,619.75
8,408.63
0.33%
(4,581.00)
A2 / A-
AA-
4.72
3.61
58989V2D5 Met Tower Global Funding Note
1.250% Due 09/14/2026
3,745,000.00 09/07/2021
1.27%
3,741,554.60
3,741,586.68
99.45
1.37%
3,724,357.56
2,210.59
0.54%
(17,229.12)
Aa3 / AA-
AA-
4.96
4.78
06368FAC3 Bank of Montreal Note
1.250% Due 09/15/2026
3,000,000.00 Various
1.29%
2,994,647.40
2,994,694.30
99.17
1.42%
2,975,139.00
1,666.67
0.43%
(19,555.30)
A2 / A-
AA-
4.96
4.79
931142ER0 Wal-Mart Stores Callable Note Cont 08/17/2026
1.050% Due 09/17/2026
1,725,000.00 09/08/2021
1.09%
1,721,739.75
1,721,764.75
99.82
1.09%
1,721,882.93
704.38
0.25%
118.18
Aa2 / AA
AA
4.97
4.74
TOTAL Corporate 156,750,000.00 2.06%
157,913,184.56
157,716,681.23 0.70%
161,201,397.81
869,648.35
23.61%
3,484,716.58
A1 / A+
A+
2.74
2.43
Money Market Fund
31846V567 First American Govt Obligation MMKT Class-Z 1,846,484.81 Various
0.03%
1,846,484.81
1,846,484.81
1.00
0.03%
1,846,484.81
0.00
0.27%
0.00
Aaa / AAA
AAA
0.00
0.00
TOTAL Money Market Fund 1,846,484.81 0.03%
1,846,484.81
1,846,484.81 0.03%
1,846,484.81
0.00
0.27%
0.00
Aaa / AAA
Aaa
0.00
0.00
Mortgage Pass Thru
36225CAZ9 GNMA Pool# G2 80023
1.610% Due 12/20/2026
9,538.20 08/08/1997
1.51%
9,696.16
9,566.31
103.48
0.11%
9,869.99
12.80
0.00%
303.68
Aaa / AA+
AAA
5.22
2.25
36225CC20 GNMA Pool# G2 80088
1.590% Due 06/20/2027
6,739.00 08/11/1997
1.46%
6,886.42
6,767.26
101.86
0.81%
6,864.41
8.93
0.00%
97.15
Aaa / AA+
AAA
5.72
1.65
As of September 30, 2021
44
I
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
31348SWZ3 FHLMC FH 786064
2.257% Due 01/01/2028
1,389.23 02/18/2000
2.44%
1,355.40
1,381.64
100.61
1.94%
1,397.66
2.61
0.00%
16.02
Aaa / AA+
AAA
6.26
0.32
31371NUC7 FNMA FN 257179
4.500% Due 04/01/2028
7,403.05 12/05/2011
3.72%
7,829.46
7,573.04
108.07
0.77%
8,000.25
27.76
0.00%
427.21
Aaa / AA+
AAA
6.51
2.19
31417YAY3 FNMA Pool# FN MA0022
4.500% Due 04/01/2029
9,073.44 12/05/2011
3.76%
9,596.05
9,299.93
108.12
1.06%
9,809.99
34.03
0.00%
510.06
Aaa / AA+
AAA
7.51
2.39
3138EG6F6 FNMA FN AL0869
4.500% Due 06/01/2029
5,354.59 12/05/2011
3.77%
5,663.02
5,489.93
108.09
1.12%
5,787.54
4.69
0.00%
297.61
Aaa / AA+
AAA
7.67
2.43
36225CNM4 GNMA Pool# G2 80395
1.590% Due 04/20/2030
3,790.42 03/15/2000
1.65%
3,756.05
3,780.59
103.58
0.42%
3,926.17
5.02
0.00%
145.58
Aaa / AA+
AAA
8.56
2.87
36225CN28 GNMA Pool# G2 80408
1.590% Due 05/20/2030
31,069.25 03/15/2000
1.65%
30,753.69
30,978.41
103.60
0.60%
32,188.21
41.17
0.00%
1,209.80
Aaa / AA+
AAA
8.64
3.40
31403GXF4 FNMA Pool# FN 748678
5.000% Due 10/01/2033
799.99 06/10/2013
4.16%
859.98
835.60
110.69
1.83%
885.52
3.33
0.00%
49.92
Aaa / AA+
AAA
12.01
3.38
36225DCB8 GNMA Pool# G2 80965
1.620% Due 07/20/2034
26,123.72 07/19/2004
1.62%
26,107.40
26,116.73
103.99
0.58%
27,165.17
35.27
0.00%
1,048.44
Aaa / AA+
AAA
12.81
3.87
31406XWT5 FNMA Pool# FN 823358
1.988% Due 02/01/2035
68,468.68 01/11/2006
2.04%
67,933.76
68,222.87
105.28
1.01%
72,085.88
113.41
0.01%
3,863.01
Aaa / AA+
AAA
13.35
0.50
31406PQY8 FNMA Pool# FN 815971
5.000% Due 03/01/2035
85,735.18 06/10/2013
4.21%
92,165.33
89,723.19
114.05
1.10%
97,784.23
357.23
0.01%
8,061.04
Aaa / AA+
AAA
13.42
3.59
31407BXH7 FNMA Pool# FN 826080
5.000% Due 07/01/2035
11,785.70 06/10/2013
4.22%
12,669.61
12,339.01
114.06
1.10%
13,443.35
49.11
0.00%
1,104.34
Aaa / AA+
AAA
13.76
3.59
31376KT22 FNMA FN 357969
5.000% Due 09/01/2035
60,287.09 06/10/2013
4.22%
64,808.61
63,130.45
113.75
1.24%
68,575.60
58.61
0.01%
5,445.15
Aaa / AA+
AAA
13.93
3.65
31403DJZ3 FNMA Pool #745580
5.000% Due 06/01/2036
57,500.94 06/10/2013
4.26%
61,813.50
60,265.38
114.02
1.18%
65,559.70
239.59
0.01%
5,294.32
Aaa / AA+
AAA
14.68
3.66
31410F4V4 FNMA Pool# FN 888336
5.000% Due 07/01/2036
99,528.87 06/10/2013
4.25%
106,993.55
104,323.46
113.43
1.28%
112,891.12
414.70
0.02%
8,567.66
Aaa / AA+
AAA
14.76
3.61
TOTAL Mortgage Pass Thru 484,587.35 3.50%
508,887.99
499,793.80 1.07%
536,234.79
1,408.26
0.08%
36,440.99
Aaa / AA+
Aaa
13.03
3.08
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
12,055.56
0.73%
0.00
P-1 / A-1
F-1+
0.15
0.15
65558UBJ0 Nordea Bank APB New York Yankee CD
0.210% Due 05/16/2022
7,000,000.00 05/19/2021
0.20%
7,000,702.07
7,000,440.25
100.03
0.16%
7,002,338.00
5,716.67
1.02%
1,897.75
P-1 / A-1+
F-1+
0.62
0.62
As of September 30, 2021
45
I
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
06417MQL2 Bank of Nova Scotia Houston Yankee CD
0.200% Due 06/23/2022
5,000,000.00 06/29/2021
0.20%
4,999,999.61
4,999,999.71
100.02
0.17%
5,001,175.00
2,777.78
0.73%
1,175.29
P-1 / A-1
F-1+
0.73
0.73
TOTAL Negotiable CD 17,000,000.00 0.22%
17,000,701.68
17,000,439.96 0.20%
17,003,513.00
20,550.01
2.48%
3,073.04
Aaa / AA+
Aaa
0.52
0.52
Supranational
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
2,999,779.73
100.58
0.21%
3,017,250.00
12,927.08
0.44%
17,470.27
Aaa / NR
AAA
0.30
0.30
459058FY4 Intl. Bank Recon & Development Note
2.000% Due 01/26/2022
10,000,000.00 Various
1.99%
10,006,350.00
10,000,307.33
100.58
0.21%
10,057,500.00
36,111.12
1.47%
57,192.67
Aaa / NR
AAA
0.32
0.32
4581X0CZ9 Inter-American Dev Bank Note
1.750% Due 09/14/2022
6,500,000.00 Various
2.65%
6,249,655.00
6,447,799.38
101.48
0.20%
6,596,323.50
5,371.52
0.96%
148,524.12
Aaa / AAA
AAA
0.96
0.95
4581X0DZ8 Inter-American Dev Bank Note
0.500% Due 09/23/2024
10,775,000.00 09/15/2021
0.52%
10,767,026.50
10,767,084.70
99.70
0.60%
10,743,095.23
1,197.22
1.57%
(23,989.47)
Aaa / AAA
NR
2.98
2.95
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
6,227,807.00
99.63
0.73%
6,221,893.50
17,238.80
0.91%
(5,913.50)
Aaa / AAA
NR
3.56
3.50
4581X0DN5 Inter-American Dev Bank Note
0.625% Due 07/15/2025
5,050,000.00 01/13/2021
0.53%
5,071,967.50
5,068,502.47
99.38
0.79%
5,018,801.10
6,663.19
0.73%
(49,701.37)
Aaa / AAA
NR
3.79
3.73
459058JL8 Intl. Bank Recon & Development Note
0.500% Due 10/28/2025
15,000,000.00 Various
0.55%
14,964,951.60
14,969,939.95
98.63
0.84%
14,794,035.00
31,875.00
2.16%
(175,904.95)
Aaa / AAA
AAA
4.08
4.02
4581X0DV7 Inter-American Dev Bank Note
0.875% Due 04/20/2026
13,370,000.00 04/13/2021
0.97%
13,308,765.40
13,314,265.11
99.57
0.97%
13,312,094.53
52,319.41
1.95%
(2,170.58)
Aaa / AAA
AAA
4.56
4.44
TOTAL Supranational 69,940,000.00 1.11%
69,585,857.85
69,795,485.67 0.64%
69,760,992.86
163,703.34
10.19%
(34,492.81)
Aaa / AAA
Aaa
2.93
2.88
US Treasury
912828L24 US Treasury Note
1.875% Due 08/31/2022
2,500,000.00 09/27/2017
1.92%
2,494,930.25
2,499,058.23
101.63
0.09%
2,540,820.00
4,014.16
0.37%
41,761.77
Aaa / AA+
AAA
0.92
0.91
912828L57 US Treasury Note
1.750% Due 09/30/2022
10,000,000.00 Various
1.98%
9,889,160.15
9,978,017.48
101.65
0.10%
10,165,230.00
480.77
1.48%
187,212.52
Aaa / AA+
AAA
1.00
1.00
912828M80 US Treasury Note
2.000% Due 11/30/2022
8,000,000.00 12/22/2017
2.25%
7,907,500.00
7,978,159.72
102.18
0.13%
8,174,376.00
53,770.49
1.20%
196,216.28
Aaa / AA+
AAA
1.17
1.15
912828N30 US Treasury Note
2.125% Due 12/31/2022
5,000,000.00 01/24/2018
2.44%
4,926,562.50
4,981,406.16
102.46
0.15%
5,123,240.00
26,851.22
0.75%
141,833.84
Aaa / AA+
AAA
1.25
1.23
91282CBG5 US Treasury Note
0.125% Due 01/31/2023
10,000,000.00 03/29/2021
0.14%
9,998,046.88
9,998,584.57
99.95
0.16%
9,995,310.00
2,105.98
1.46%
(3,274.57)
Aaa / AA+
AAA
1.34
1.33
As of September 30, 2021
46
I
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
9128284D9 US Treasury Note
2.500% Due 03/31/2023
10,000,000.00 Various
2.75%
9,887,265.63
9,965,874.06
103.45
0.19%
10,345,310.00
686.82
1.51%
379,435.94
Aaa / AA+
AAA
1.50
1.48
912828R69 US Treasury Note
1.625% Due 05/31/2023
5,000,000.00 05/30/2018
2.67%
4,757,226.56
4,919,297.11
102.32
0.23%
5,116,210.00
27,305.33
0.75%
196,912.89
Aaa / AA+
AAA
1.67
1.64
912828U57 US Treasury Note
2.125% Due 11/30/2023
15,000,000.00 Various
2.53%
14,723,632.81
14,876,230.11
103.88
0.33%
15,582,420.00
107,120.90
2.29%
706,189.89
Aaa / AA+
AAA
2.17
2.11
91282CBA8 US Treasury Note
0.125% Due 12/15/2023
6,500,000.00 12/29/2020
0.17%
6,491,367.19
6,493,565.36
99.52
0.34%
6,469,021.00
2,397.54
0.94%
(24,544.36)
Aaa / AA+
AAA
2.21
2.20
912828V80 US Treasury Note
2.250% Due 01/31/2024
7,500,000.00 Various
2.27%
7,491,503.91
7,495,851.99
104.38
0.36%
7,828,710.00
28,430.70
1.14%
332,858.01
Aaa / AA+
AAA
2.34
2.28
912828W48 US Treasury Note
2.125% Due 02/29/2024
10,000,000.00 04/24/2019
2.32%
9,911,718.75
9,956,083.69
104.18
0.38%
10,418,360.00
18,197.51
1.52%
462,276.31
Aaa / AA+
AAA
2.42
2.36
912828WJ5 US Treasury Note
2.500% Due 05/15/2024
7,000,000.00 06/10/2019
1.91%
7,193,046.88
7,102,636.59
105.38
0.44%
7,376,250.00
66,100.54
1.08%
273,613.41
Aaa / AA+
AAA
2.62
2.53
912828XX3 US Treasury Note
2.000% Due 06/30/2024
5,000,000.00 07/12/2019
1.88%
5,028,710.94
5,015,892.42
104.17
0.47%
5,208,400.00
25,271.74
0.76%
192,507.58
Aaa / AA+
AAA
2.75
2.67
912828WU0 US Treasury Inflation Index Note
0.125% Due 07/15/2024
11,955,424.00 Various
0.22%
11,844,089.93
11,924,261.48
106.75
(2.21%)
12,762,725.96
3,167.59
1.86%
838,464.48
Aaa / AA+
AAA
2.79
2.82
91282CCX7 US Treasury Note
0.375% Due 09/15/2024
3,000,000.00 09/29/2021
0.54%
2,985,468.75
2,985,482.19
99.55
0.53%
2,986,641.00
497.24
0.44%
1,158.81
Aaa / AA+
AAA
2.96
2.94
912828YH7 US Treasury Note
1.500% Due 09/30/2024
14,000,000.00 Various
1.72%
13,859,296.88
13,911,826.15
102.90
0.52%
14,406,322.00
576.92
2.10%
494,495.85
Aaa / AA+
AAA
3.00
2.94
9128283J7 US Treasury Note
2.125% Due 11/30/2024
16,500,000.00 Various
1.76%
16,783,886.72
16,681,512.68
104.87
0.57%
17,303,088.00
117,832.99
2.54%
621,575.32
Aaa / AA+
AAA
3.17
3.05
912828ZL7 US Treasury Note
0.375% Due 04/30/2025
12,000,000.00 Various
0.38%
11,998,515.63
11,998,895.94
98.86
0.70%
11,863,596.00
18,831.52
1.73%
(135,299.94)
Aaa / AA+
AAA
3.58
3.55
91282CAM3 US Treasury Note
0.250% Due 09/30/2025
6,500,000.00 10/16/2020
0.32%
6,477,656.25
6,481,946.94
97.82
0.80%
6,358,319.50
44.64
0.93%
(123,627.44)
Aaa / AA+
AAA
4.00
3.97
91282CBC4 US Treasury Note
0.375% Due 12/31/2025
10,000,000.00 Various
0.49%
9,943,320.32
9,949,496.06
97.95
0.87%
9,794,920.00
9,476.90
1.43%
(154,576.06)
Aaa / AA+
AAA
4.25
4.20
91282CBH3 US Treasury Note
0.375% Due 01/31/2026
18,000,000.00 Various
0.63%
17,781,875.00
17,807,189.64
97.82
0.89%
17,606,952.00
11,372.28
2.57%
(200,237.64)
Aaa / AA+
AAA
4.34
4.28
91282CBT7 US Treasury Note
0.750% Due 03/31/2026
10,000,000.00 Various
0.87%
9,943,359.37
9,948,952.78
99.26
0.92%
9,925,780.00
206.04
1.45%
(23,172.78)
Aaa / AA+
AAA
4.50
4.41
91282CCF6 US Treasury Note
0.750% Due 05/31/2026
7,500,000.00 06/18/2021
0.91%
7,443,750.00
7,446,928.67
99.12
0.94%
7,434,082.50
18,903.69
1.09%
(12,846.17)
Aaa / AA+
AAA
4.67
4.56
As of September 30, 2021
47
I
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
91282CCW9 US Treasury Note
0.750% Due 08/31/2026
3,000,000.00 09/29/2021
1.00%
2,964,609.38
2,964,629.09
98.88
0.98%
2,966,484.00
1,926.80
0.43%
1,854.91
Aaa / AA+
AAA
4.92
4.81
TOTAL US Treasury 213,955,424.00 1.39%
212,726,500.68
213,361,779.11 0.34%
217,752,567.96
545,570.31
31.80%
4,390,788.85
Aaa / AA+
Aaa
2.82
2.77
TOTAL PORTFOLIO 671,632,948.54 1.45%
673,167,225.78
673,125,347.34 0.50%
684,138,225.70
2,244,714.66
100.00%
11,012,878.36
Aa1 / AA
Aaa
2.78
2.54
TOTAL MARKET VALUEPLUS ACCRUALS 686,382,940.36
As of September 30, 2021
48
I
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
Commercial Paper
21687AYV9 Rabobank Nederland NV NY Discount CP
0.170% Due 11/29/2021
2,000,000.00 04/27/2021
0.17%
1,997,978.89
1,999,442.78
99.97
0.17%
1,999,442.78
0.00
1.54%
0.00
P-1 / A-1
NR
0.16
0.16
62479MAM5 MUFG Bank Ltd/NY Discount CP
0.140% Due 01/21/2022
2,000,000.00 04/27/2021
0.14%
1,997,907.78
1,999,128.89
99.96
0.14%
1,999,128.89
0.00
1.54%
0.00
P-1 / A-1
NR
0.31
0.31
89233HAU8 Toyota Motor Credit Discount CP
0.150% Due 01/28/2022
4,000,000.00 05/24/2021
0.15%
3,995,866.67
3,998,016.67
99.95
0.15%
3,998,016.67
0.00
3.08%
0.00
P-1 / A-1+
F-1
0.33
0.33
TOTAL Commercial Paper 8,000,000.00 0.15%
7,991,753.34
7,996,588.34 0.15%
7,996,588.34
0.00
6.16%
0.00
P-1 / A-1
F-1
0.28
0.28
Corporate
14913Q2T5 Caterpillar Finl Service Note
2.950% Due 02/26/2022
2,000,000.00 05/06/2021
0.20%
2,043,700.00
2,022,149.32
101.08
0.28%
2,021,664.00
5,736.11
1.56%
(485.32)
A2 / A
A
0.41
0.41
61744YAH1 Morgan Stanley Note
2.750% Due 05/19/2022
2,000,000.00 06/15/2021
0.19%
2,047,260.00
2,032,254.60
101.62
0.21%
2,032,316.00
20,166.67
1.58%
61.40
A1 / BBB+
A
0.63
0.63
02665WDF5 American Honda Finance Note
1.950% Due 05/20/2022
2,000,000.00 06/16/2021
0.17%
2,032,780.00
2,022,536.25
101.11
0.22%
2,022,126.00
14,191.67
1.57%
(410.25)
A3 / A-
NR
0.64
0.63
05531FBG7 Truist Financial Corporation Callable Note Cont
5/20/2022
3.050% Due 06/20/2022
2,000,000.00 07/01/2021
0.21%
2,049,420.00
2,035,899.43
101.79
0.24%
2,035,826.00
17,113.89
1.58%
(73.43)
A3 / A-
A
0.72
0.63
TOTAL Corporate 8,000,000.00 0.19%
8,173,160.00
8,112,839.60 0.23%
8,111,932.00
57,208.34
6.29%
(907.60)
A2 / A-
A
0.60
0.58
Money Market Fund
31846V567 First American Govt Obligation MMKT Class-Z 41,613.23 Various
0.03%
41,613.23
41,613.23
1.00
0.03%
41,613.23
0.00
0.03%
0.00
Aaa / AAA
AAA
0.00
0.00
TOTAL Money Market Fund 41,613.23 0.03%
41,613.23
41,613.23 0.03%
41,613.23
0.00
0.03%
0.00
Aaa / AAA
Aaa
0.00
0.00
Negotiable CD
06417MNK7 Bank of Nova Scotia Houston Yankee CD
0.220% Due 04/08/2022
3,000,000.00 04/09/2021
0.22%
3,000,000.00
3,000,000.00
100.05
0.13%
3,001,356.00
3,208.33
2.31%
1,356.00
P-1 / A-1
F-1+
0.52
0.52
89114W7M1 Toronto Dominion Yankee CD
0.240% Due 04/28/2022
2,000,000.00 04/29/2021
0.24%
1,999,999.94
1,999,999.97
100.04
0.16%
2,000,894.00
2,080.00
1.54%
894.03
P-1 / A-1
F-1+
0.58
0.57
86959RQE3 Svenska Handelsbanken NY Yankee CD
0.230% Due 05/10/2022
3,000,000.00 08/26/2021
0.17%
3,001,280.93
3,001,101.50
100.04
0.16%
3,001,326.00
2,760.00
2.31%
224.50
P-1 / A-1+
F-1+
0.61
0.61
As of September 30, 2021
49
I
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
65558UBJ0 Nordea Bank APB New York Yankee CD
0.210% Due 05/16/2022
3,000,000.00 05/19/2021
0.20%
3,000,300.89
3,000,188.68
100.03
0.16%
3,001,002.00
2,450.00
2.31%
813.32
P-1 / A-1+
F-1+
0.62
0.62
TOTAL Negotiable CD 11,000,000.00 0.20%
11,001,581.76
11,001,290.15 0.15%
11,004,578.00
10,498.33
8.48%
3,287.85
Aaa / AAA
Aaa
0.58
0.58
US Treasury
912828Z60 US Treasury Note
1.375% Due 01/31/2022
20,000,000.00 Various
0.05%
20,174,609.38
20,088,001.12
100.44
0.06%
20,087,960.00
46,331.52
15.50%
(41.12)
Aaa / AA+
AAA
0.34
0.33
912828H86 US Treasury Note
1.500% Due 01/31/2022
22,500,000.00 Various
0.05%
22,676,562.50
22,608,048.11
100.48
0.06%
22,608,292.50
56,861.41
17.45%
244.39
Aaa / AA+
AAA
0.34
0.33
912796D30 US Treasury Bill
0.047% Due 02/24/2022
12,000,000.00 08/30/2021
0.05%
11,997,256.50
11,997,737.00
99.98
0.05%
11,997,737.00
0.00
9.24%
0.00
P-1 / A-1+
F-1+
0.40
0.40
912828J43 US Treasury Note
1.750% Due 02/28/2022
7,500,000.00 04/29/2021
0.05%
7,606,054.69
7,552,329.62
100.70
0.06%
7,552,732.50
11,239.64
5.82%
402.88
Aaa / AA+
AAA
0.41
0.42
9128286H8 US Treasury Note
2.375% Due 03/15/2022
7,500,000.00 04/29/2021
0.06%
7,651,757.81
7,578,495.42
101.06
0.06%
7,579,687.50
7,872.93
5.84%
1,192.08
Aaa / AA+
AAA
0.45
0.46
9128286M7 US Treasury Note
2.250% Due 04/15/2022
7,500,000.00 04/29/2021
0.06%
7,657,324.22
7,588,101.56
101.18
0.07%
7,588,477.50
77,920.08
5.90%
375.94
Aaa / AA+
AAA
0.54
0.54
912828ZM5 US Treasury Note
0.125% Due 04/30/2022
25,000,000.00 Various
0.06%
25,014,746.10
25,009,466.64
100.03
0.07%
25,007,800.00
13,077.44
19.27%
(1,666.64)
Aaa / AA+
AAA
0.58
0.58
TOTAL US Treasury 102,000,000.00 0.06%
102,778,311.20
102,422,179.47 0.06%
102,422,687.00
213,303.02
79.04%
507.53
Aaa / AA+
Aaa
0.43
0.43
TOTAL PORTFOLIO 129,041,613.23 0.08%
129,986,419.53
129,574,510.79 0.09%
129,577,398.57
281,009.69
100.00%
2,887.78
Aaa / AA+
Aaa
0.45
0.45
TOTAL MARKET VALUEPLUS ACCRUALS 129,858,408.26
As of September 30, 2021
50
I
Holdings Report
OC SAN 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 09/30/2021
60,641.49 11/21/2014
0.00%
57,842.64
57,842.64
0.42
0.00%
25,621.03
0.00
59.17%
(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
59.17%
(32,221.61)
NR / NR
NR
0.00
0.00
Corporate
525ESCIB7 Lehman Brothers Note-Defaulted
0.000% Due 01/24/2022
600,000.00 09/19/2008
0.00%
316,428.27
316,428.27
0.68
0.00%
4,080.00
0.00
9.42%
(312,348.27)
NR / NR
NR
0.32
0.00
525ESC0Y6 Lehman Brothers Note-Defaulted
0.000% Due 10/22/2049
2,000,000.00 09/18/2008
0.00%
1,019,380.10
1,019,380.10
0.68
0.00%
13,600.00
0.00
31.41%
(1,005,780.10)
NR / NR
NR
28.08
0.00
TOTAL Corporate 2,600,000.00 0.00%
1,335,808.37
1,335,808.37 0.00%
17,680.00
0.00
40.83%
(1,318,128.37)
NR / NR
NR
21.67
0.00
TOTAL PORTFOLIO 2,660,641.49 0.00%
1,393,651.01
1,393,651.01 0.00%
43,301.03
0.00
100.00%
(1,350,349.98)
NR / NR
NR
8.85
0.00
TOTAL MARKET VALUEPLUS ACCRUALS 43,301.03
As of September 30, 2021
51
I
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 07/07/2021 3137BFE98 5,000,000.00 FHLMC K041 A2
3.171% Due: 10/25/2024
107.570 0.72% 5,378,515.62 2,642.50 5,381,158.12 0.00
Purchase 07/12/2021 79466LAG9 1,350,000.00 Salesforce.com Inc Callable Note Cont 7/15/2022
0.625% Due: 07/15/2024
99.949 0.64% 1,349,311.50 0.00 1,349,311.50 0.00
Purchase 07/16/2021 037833AZ3 3,922,000.00 Apple Inc Note
2.5% Due: 02/09/2025
105.928 0.81% 4,154,496.16 42,760.69 4,197,256.85 0.00
Purchase 07/21/2021 47789QAC4 2,820,000.00 John Deere Owner Trust 2021-B A3
0.52% Due: 03/16/2026
99.991 0.52% 2,819,748.46 0.00 2,819,748.46 0.00
Purchase 07/28/2021 44934KAC8 6,040,000.00 Hyundai Auto Receivables Trust 2021-B A3
0.38% Due: 01/15/2026
99.978 0.39% 6,038,666.97 0.00 6,038,666.97 0.00
Purchase 08/02/2021 89239CAC3 3,185,000.00 Toyota Lease Owner Trust 2021-B A3
0.42% Due: 10/21/2024
99.999 0.42% 3,184,957.00 0.00 3,184,957.00 0.00
Purchase 08/16/2021 06367WB85 7,000,000.00 Bank of Montreal Note
1.85% Due: 05/01/2025
103.242 0.96% 7,226,940.00 37,770.83 7,264,710.83 0.00
Purchase 09/14/2021 58989V2D5 3,745,000.00 Met Tower Global Funding Note
1.25% Due: 09/14/2026
99.908 1.27% 3,741,554.60 0.00 3,741,554.60 0.00
Purchase 09/15/2021 06368FAC3 1,980,000.00 Bank of Montreal Note
1.25% Due: 09/15/2026
99.792 1.29% 1,975,881.60 0.00 1,975,881.60 0.00
Purchase 09/15/2021 06368FAC3 1,020,000.00 Bank of Montreal Note
1.25% Due: 09/15/2026
99.879 1.28% 1,018,765.80 0.00 1,018,765.80 0.00
Purchase 09/15/2021 09690AAC7 2,070,000.00 BMW Vehicle Lease Trust 2021-2 A3
0.33% Due: 12/26/2024
99.990 0.34% 2,069,786.38 0.00 2,069,786.38 0.00
Purchase 09/17/2021 931142ER0 1,725,000.00 Wal-Mart Stores Callable Note Cont 08/17/2026
1.05% Due: 09/17/2026
99.811 1.09% 1,721,739.75 0.00 1,721,739.75 0.00
Purchase 09/23/2021 4581X0DZ8 10,775,000.00 Inter-American Dev Bank Note
0.5% Due: 09/23/2024
99.926 0.52% 10,767,026.50 0.00 10,767,026.50 0.00
Purchase 09/30/2021 91282CCW9 3,000,000.00 US Treasury Note
0.75% Due: 08/31/2026
98.820 1.00% 2,964,609.38 1,864.64 2,966,474.02 0.00
June 30, 2021 through September 30, 2021
As of September 30, 2021
53
I
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
Purchase 09/30/2021 91282CCX7 3,000,000.00 US Treasury Note
0.375% Due: 09/15/2024
99.516 0.54% 2,985,468.75 466.16 2,985,934.91 0.00
Subtotal 56,632,000.00 57,397,468.47 85,504.82 57,482,973.29 0.00
Security
Contribution
07/31/2021 912828WU0 101,249.01 US Treasury Inflation Index Note
0.125% Due: 07/15/2024
100.000 101,249.01 5.50 101,254.51 0.00
Security
Contribution
08/31/2021 912828WU0 108,992.00 US Treasury Inflation Index Note
0.125% Due: 07/15/2024
100.000 108,992.00 17.40 109,009.40 0.00
Security
Contribution
09/13/2021 912828WU0 30,264.00 US Treasury Inflation Index Note
0.125% Due: 07/15/2024
100.000 30,264.00 6.17 30,270.17 0.00
Security
Contribution
09/30/2021 912828WU0 28,600.00 US Treasury Inflation Index Note
0.125% Due: 07/15/2024
100.000 28,600.00 7.48 28,607.48 0.00
Subtotal 269,105.01 269,105.01 36.55 269,141.56 0.00
TOTAL ACQUISITIONS 56,901,105.01 57,666,573.48 85,541.37 57,752,114.85 0.00
DISPOSITIONS
Sale 07/02/2021 912828U65 6,500,000.00 US Treasury Note
1.75% Due: 11/30/2021
100.703 2.06% 6,545,703.13 9,945.36 6,555,648.49 53,467.41
Sale 07/15/2021 912828V72 3,000,000.00 US Treasury Note
1.875% Due: 01/31/2022
100.992 1.84% 3,029,765.63 25,638.81 3,055,404.44 29,230.06
Sale 09/10/2021 912828J76 5,000,000.00 US Treasury Note
1.75% Due: 03/31/2022
100.941 1.85% 5,047,070.31 38,968.58 5,086,038.89 49,720.56
Sale 09/14/2021 3135G0S38 3,000,000.00 FNMA Note
2% Due: 01/05/2022
100.601 2.04% 3,018,030.00 11,500.00 3,029,530.00 18,370.88
Sale 09/16/2021 912828L24 3,500,000.00 US Treasury Note
1.875% Due: 08/31/2022
101.727 1.92% 3,560,429.69 2,900.55 3,563,330.24 61,807.38
June 30, 2021 through September 30, 2021
As of September 30, 2021
54
I
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
Sale 09/16/2021 912828XW5 5,000,000.00 US Treasury Note
1.75% Due: 06/30/2022
101.328 1.86% 5,066,406.25 18,546.20 5,084,952.45 70,638.82
Sale 09/30/2021 912828L57 6,000,000.00 US Treasury Note
1.75% Due: 09/30/2022
101.664 1.95% 6,099,843.75 0.00 6,099,843.75 113,069.49
Subtotal 32,000,000.00 32,367,248.76 107,499.50 32,474,748.26 396,304.60
Call 07/08/2021 594918BP8 3,045,000.00 Microsoft Callable Note Cont 7/8/2021
1.55% Due: 08/08/2021
100.000 1.58% 3,045,000.00 19,665.62 3,064,665.62 61.37
Subtotal 3,045,000.00 3,045,000.00 19,665.62 3,064,665.62 61.37
Maturity 07/20/2021 45950KCJ7 2,500,000.00 International Finance Corp Note
1.125% Due: 07/20/2021
100.000 2,500,000.00 0.00 2,500,000.00 0.00
Maturity 07/26/2021 62479LUS2 12,000,000.00 MUFG Bank Ltd Discount CP
0.1% Due: 07/26/2021
99.975 12,000,000.00 0.00 12,000,000.00 0.00
Maturity 07/28/2021 61747WAL3 2,800,000.00 Morgan Stanley Note
5.5% Due: 07/28/2021
100.000 2,800,000.00 0.00 2,800,000.00 0.00
Subtotal 17,300,000.00 17,300,000.00 0.00 17,300,000.00 0.00
Security
Withdrawal
07/15/2021 912828WU0 7,337.01 US Treasury Inflation Index Note
0.125% Due: 07/15/2024
99.884 0.14% 7,337.01 4.59 7,341.60 21.06
Subtotal 7,337.01 7,337.01 4.59 7,341.60 21.06
TOTAL DISPOSITIONS 52,352,337.01 52,719,585.77 127,169.71 52,846,755.48 396,387.03
June 30, 2021 through September 30, 2021
As of September 30, 2021
55
I
Transaction Ledger
Orange County Sanitation District Liquid - Account #10282
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price
Acq/Disp
Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 07/01/2021 912828ZM5 10,000,000.00 US Treasury Note
0.125% Due: 04/30/2022
100.039 0.08% 10,003,906.25 2,105.98 10,006,012.23 0.00
Purchase 07/06/2021 05531FBG7 2,000,000.00 Truist Financial Corporation Callable Note Cont
5/20/2022
3.05% Due: 06/20/2022
102.471 0.21% 2,049,420.00 2,711.11 2,052,131.11 0.00
Purchase 07/29/2021 912796F61 14,000,000.00 US Treasury Bill
0.04% Due: 09/30/2021
99.993 0.04% 13,999,020.00 0.00 13,999,020.00 0.00
Purchase 08/16/2021 912796F61 5,000,000.00 US Treasury Bill
0.041% Due: 09/30/2021
99.995 0.04% 4,999,745.63 0.00 4,999,745.63 0.00
Purchase 08/16/2021 912828H86 5,000,000.00 US Treasury Note
1.5% Due: 01/31/2022
100.656 0.06% 5,032,812.50 3,260.87 5,036,073.37 0.00
Purchase 08/26/2021 86959RQE3 3,000,000.00 Svenska Handelsbanken NY Yankee CD
0.23% Due: 05/10/2022
100.043 0.17% 3,001,280.93 2,070.00 3,003,350.93 0.00
Purchase 08/27/2021 912828H86 10,000,000.00 US Treasury Note
1.5% Due: 01/31/2022
100.617 0.05% 10,061,718.75 11,005.43 10,072,724.18 0.00
Purchase 08/31/2021 912796D30 13,250,000.00 US Treasury Bill
0.047% Due: 02/24/2022
99.977 0.05% 13,246,970.72 0.00 13,246,970.72 0.00
Subtotal 62,250,000.00 62,394,874.78 21,153.39 62,416,028.17 0.00
TOTAL ACQUISITIONS 62,250,000.00 62,394,874.78 21,153.39 62,416,028.17 0.00
DISPOSITIONS
Sale 09/29/2021 912796D30 1,250,000.00 US Treasury Bill
0.047% Due: 02/24/2022
99.986 0.05% 1,249,829.90 0.00 1,249,829.90 68.86
Sale 09/29/2021 912796M22 5,500,000.00 US Treasury Bill
0.046% Due: 10/05/2021
100.000 0.05% 5,499,996.98 0.00 5,499,996.98 39.15
Subtotal 6,750,000.00 6,749,826.88 0.00 6,749,826.88 108.01
June 30, 2021 through September 30, 2021
As of September 30, 2021
56
I
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 07/22/2021 912796C49 5,000,000.00 US Treasury Bill
0.093% Due: 07/22/2021
100.000 5,000,000.00 0.00 5,000,000.00 0.00
Maturity 07/29/2021 912796C56 7,000,000.00 US Treasury Bill
0.077% Due: 07/29/2021
100.000 7,000,000.00 0.00 7,000,000.00 0.00
Maturity 07/31/2021 9128287F1 2,000,000.00 US Treasury Note
1.75% Due: 07/31/2021
100.000 2,000,000.00 0.00 2,000,000.00 0.00
Maturity 07/31/2021 912828S76 43,000,000.00 US Treasury Note
1.125% Due: 07/31/2021
100.000 43,000,000.00 0.00 43,000,000.00 0.00
Maturity 07/31/2021 912828WY2 8,000,000.00 US Treasury Note
2.25% Due: 07/31/2021
100.000 8,000,000.00 0.00 8,000,000.00 0.00
Maturity 08/15/2021 912828RC6 5,000,000.00 US Treasury Note
2.125% Due: 08/15/2021
100.000 5,000,000.00 0.00 5,000,000.00 0.00
Maturity 08/25/2021 313385KW5 7,525,000.00 FHLB Discount Note
0.052% Due: 08/25/2021
100.000 7,525,000.00 0.00 7,525,000.00 0.00
Maturity 08/26/2021 912796D55 13,000,000.00 US Treasury BIll
0.057% Due: 08/26/2021
100.000 13,000,000.00 0.00 13,000,000.00 0.00
Maturity 08/31/2021 912828YC8 9,000,000.00 US Treasury Note
1.5% Due: 08/31/2021
100.000 9,000,000.00 0.00 9,000,000.00 0.00
Maturity 09/30/2021 912796F61 19,000,000.00 US Treasury Bill
0.04% Due: 09/30/2021
100.000 19,000,000.00 0.00 19,000,000.00 0.00
Subtotal 118,525,000.00 118,525,000.00 0.00 118,525,000.00 0.00
TOTAL DISPOSITIONS 125,275,000.00 125,274,826.8
8 0.00 125,274,826.88 108.01
June 30, 2021 through September 30, 2021
As of September 30, 2021
57
I
Important Disclosures
2021ChandlerAssetManagement,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. Economic factors, market conditions or changes in investment strategies,
contributionsor withdrawalsmay materiallyaltertheperformanceandresultsofyour 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
deductionof aninvestmentmanagementfee,theincurrenceofwhichwouldhave theeffectof decreasinghistoricalperformanceresults.Itis notpossibleto investdirectlyin an index.
Source ice Data Indices,LLC ("ICE"),used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third partysuppliers 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 included
in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the
index data or any component thereof, and the indices and index data and all 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,howeverwecannotguaranteeitsaccuracy.
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 September 30, 2021
58
I
Benchmark Disclosures
ICE BofA 3-Month US Treasury Bill Index
The ICE BofA US 3-Month Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a
newlyselectedissue.Theissueselectedateachmonth-endrebalancingis theoutstandingTreasuryBill thatmaturesclosestto,butnotbeyond,threemonthsfromtherebalancingdate.
ICE BofA 1-5 Yr AAA-A US Corp & Govt Index
The ICE BofA 1-5 Year AAA-A US Corporate & Government Index tracks the performanceof US dollardenominated investment gradedebt publicly issued in the US domestic market, including USTreasury,
US agency, foreign government, supranational, and corporate securities. Qualifying securities must 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,anda minimumamountoutstandingof$1billionforUS Treasuriesand$250 millionforallothersecurities.
ICE BofA 1-5 Yr US Corp & Govt Index
The ICE BofA 1-5 Year US Corporate & Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US
agency, foreign government, supranational, and corporate securities. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). In addition, qualifying
securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to final maturity at point of issuance, a fixed coupon
schedule,anda minimumamountoutstandingof$1billionforUS Treasuriesand$250 millionforallothersecurities.
As of September 30, 2021
59
I
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.
FY 2021-22 First Quarter Financial Report
This Page Intentionally Left Blank
October 31, 2021
STAFF REPORT
Certificates of Participation (COP) Quarterly Report
for the Period Ended September 30, 2021
Summary
The Orange County Sanitation District (OC San) 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 OC San:
In May 2010, OC San issued $80 million of fixed rate Build America Bonds (BABs), Series
2010A at a true interest cost of 3.68 percent for the issue.
In December 2010, OC San issued $157 million of fixed rate BABs, Series 2010C at a
true interest cost of 4.11 percent for the issue.
In October 2011, OC San 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, OC San 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, OC San 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 OC
San.
In August 2014, OC San 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, OC San 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.
Quarterly COP Report
For the Period Ended September 30, 2021
Page 2 of 2
In March 2016, OC San issued $145.88 million of fixed rate COPs, 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, OC San 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 July 2021, OC San issued $133.51 million of fixed rate COPs, Series 2021A, refunding
$61.575 million of the Series 2011A fixed rate debt and $102.2 million of the Series 2018A
fixed rate debt. The true interest cost for the issue is 1.06 percent
Additional Information
The graph entitled, "COP Rate History Report,” shows the various fixed interest rates of
the OC San’s ten debt issues.
Attachment
1. Graph - COP Rate History Report
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DATE
OC SAN COP RATE HISTORY REPORT
SEPTEMBER 2021
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 2021A Fixed
I
----+--------
FY 2021-22 First Quarter 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
09/30/21
\. ORANGE COUNTY SANITATION DISTRICT
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1906 Agenda Date:11/10/2021 Agenda Item No:6.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
MICROSOFT ENTERPRISE LICENSE AGREEMENT (ELA) FOR MICROSOFT ENTERPRISE
SOFTWARE LICENSES
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Purchase Order for a three-year contract to purchase Microsoft Enterprise licenses
under the Microsoft ELA in accordance with Microsoft Volume Enterprise Enrollment - for State
and Local government, Riverside County Master Licensing Agreement 01E73970, payable
annually and with a contract expiration date of December 31, 2024, for a total amount not to
exceed $1,470,495; and
B. Approve a contingency of 220,574 (15%).
BACKGROUND
The Orange County Sanitation District (OC San) relies on various Microsoft products for key
components of its software architecture, for example: Windows desktop and server operating
systems, email and calendaring, Office suite, web servers, databases, and cyber defense software.
Renewal of the Microsoft ELA ensures that OC San receives the best pricing on software purchases
and subscriptions while staying compliant with software license agreements and copyright law. Other
benefits include access to the latest security patches and feature updates as well as centralized
license management, records management, and tools to fulfill public records act requests.
Staff is requesting a contingency of 15% to cover any additional Microsoft licensing required during
this three-year contract. Additional licenses may be required to comply with contractor staffing
changes and new system implementations. This contingency level is consistent with past requests
for Microsoft agreements.
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OC6SAN
ORANGE COUNTY SANITATION DISTRICT
File #:2021-1906 Agenda Date:11/10/2021 Agenda Item No:6.
RELEVANT STANDARDS
·Protect OC San assets
·Sound engineering and accounting practices, complying with local, state, and federal laws
·Participate in local, state, and national cooperative purchasing programs
·Commitment to safety & reducing risk in all operations
PROBLEM
The existing Microsoft ELA expires on December 31,2021.OC San needs the licensing to stay
current on the latest supported and secure versions of the software.
PROPOSED SOLUTION
Renew OC San’s Microsoft ELA for three years.
TIMING CONCERNS
Renewal of the Microsoft ELA should occur prior to December 31,2021 to maintain compliance of the
software license agreement with Microsoft.
RAMIFICATIONS OF NOT TAKING ACTION
Access to the Microsoft 365 Platform,including Office 365 and e-mail,would become unavailable for
OC San staff. Certain Microsoft software would fall out of compliance with licensing requirements.
PRIOR COMMITTEE/BOARD ACTIONS
November 2018 -Board of Directors authorized a Purchase Order with a three-year contract to
purchase Microsoft Enterprise licenses under the Microsoft ELA in accordance with Microsoft Volume
Enterprise Enrollment -for State and local government,Riverside County Master Licensing
Agreement 01E73134,payable annually and with contract expiration date of December 31,2021,for
a total amount not to exceed $1,335,952; and approved a contingency of 15% ($200,393).
ADDITIONAL INFORMATION
The County of Riverside negotiated a contract for an ELA with Microsoft to be used by any
government agency in the State of California.There are over 100 public agencies in California
currently using this contract.
The cost to purchase the licenses needed by OC San without the ELA would be an additional
$745,398, for a total of $2,215,893.
CEQA
N/A
Orange County Sanitation District Printed on 11/2/2021Page 2 of 3
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File #:2021-1906 Agenda Date:11/10/2021 Agenda Item No:6.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San’s Purchasing Ordinance.This item has been budgeted.(FY2020-
21 and FY2021-22 Budget, Section 6, Page 36).
Date of Approval Contract Amount Contingency
11/17/2021 $1,470,495 $220,574 (15%)
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
·Insight MS EA Quote Request
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1 of 2 11/3/2021
Orange County Sanitation District
Quotation:0921-OC Sanitation1-MSEA-BWP Insight Team
Date:September 28, 2021 Letsinger, Christopher
Enrollment:52567885 (480) 111-5820
Contract:PSA-0001526/RIVCO-2020-RFQ-0000048
http://www.insight.com/azureterms
#
Customer understands and acknowledges that it is obtaining the software Products directly from Microsoft Corporation and that Insight provides no warranty to
Customer covering the Products purchased hereunder. All warranties relating to such Products are granted solely by Microsoft Corporation.
Confidential.Cover Thank you for the opportunity to quote.
11/3/2021 Page 2 of 2
Orange County Sanitation District PRELIMINARY
Quotation:0921-OC Sanitation1-MSEA-BWP
Date:September 28, 2021
Enrollment:52567885Contract:PSA-0001526/RIVCO-2020-RFQ-0000048
Part Number Item Name Program Offering Level Purchase Unit Purchase Period Pool Product Type Product Family Quantity Unit Price Extended Price
Enterprise Products
269-05704 OfficeProPlus ALNG SA MVL Enterprise 6Enterprise D 1 Year(s)Added at Signing Applications Software Assurance Office Profes 110 99.50$ 10,945.00$ Additional Products
126-00196 AzureDevOpsServerCAL ALNG SA MVL UsrCAL Enterprise 6Additional P D 1 Year(s)Added at Signing Servers Software Assurance Azure DevOp 8 72.54$ 580.32$ 9GS-00135 CISSteDCCore ALNG SA MVL 2Lic CoreLic Enterprise 6Additional P D 1 Year(s)Added at Signing Servers Software Assurance Core Infrastr 158 165.39$ 26,131.62$
9GA-00310 CISSteStdCore ALNG SA MVL 16Lic CoreLic Enterprise 6Additional P D 1 Year(s)Added at Signing Servers Software Assurance Core Infra S 42 281.09$ 11,805.78$ 076-01912 Prjct Std ALNG SA MVL Enterprise 6Additional P D 1 Year(s)Added at Signing Applications Software Assurance Project Stan 72 116.31$ 8,374.32$
H30-00238 PrjctPro ALNG SA MVL w1PrjctSvrCAL Enterprise 6Additional P D 1 Year(s)Added at Signing Applications Software Assurance Project Profe 10 191.75$ 1,917.50$
H04-00268 SharePointSvr ALNG SA MVL Enterprise 6Additional P D 1 Year(s)Added at Signing Servers Software Assurance SharePoint S 3 1,209.36$ 3,628.08$ 7JQ-00343 SQLSvrEntCore ALNG SA MVL 2Lic CoreLic Enterprise 6Additional P D 1 Year(s)Added at Signing Servers Software Assurance SQL Svr Ent 12 2,236.89$ 26,842.68$
7NQ-00292 SQLSvrStdCore ALNG SA MVL 2Lic CoreLic Enterprise 6Additional P D 1 Year(s)Added at Signing Servers Software Assurance SQL Svr Sta 36 583.34$ 21,000.24$ D87-01159 VisioPro ALNG SA MVL Enterprise 6Additional P D 1 Year(s)Added at Signing Applications Software Assurance Visio Profess 46 99.62$ 4,582.52$
D86-01253 VisioStd ALNG SA MVL Enterprise 6Additional P D 1 Year(s)Added at Signing Applications Software Assurance Visio Standa 121 51.38$ 6,216.98$
MX3-00117 VSEntSubMSDN ALNG SA MVL Enterprise 6Additional P D 1 Year(s)Added at Signing Applications Software Assurance Visual Studio 6 1,066.82$ 6,400.92$ 77D-00111 VSProSubMSDN ALNG SA MVL Enterprise 6Additional P D 1 Year(s)Added at Signing Applications Software Assurance Visual Studio 2 305.51$ 611.02$
6VC-01254 WinRmtDsktpSrvcsCAL ALNG SA MVL UsrCAL Enterprise 6Additional P D 1 Year(s)Added at Signing Servers Software Assurance Win Rmt Dsk 150 23.58$ 3,537.00$
Part Number Item Name Program Offering Level Purchase Unit Purchase Period Pool Product Type Product Family Quantity Term Price Extended Price
Enterprise Products
AAD-32907 EntMobandSecE3Full GCC ShrdSvr ALNG SubsVL MVL PerUsr Enterprise 6Enterprise D 1 Month(s)Non-Specific Servers Monthly Subscriptions-VolumeLicense Ent Mob and 80 $102.28 8,182.40$ AAD-34700 M365 E3 FromSA GCC Unified ShrdSvr ALNG SubsVL MVL PerUsr Enterprise 6Enterprise D 1 Month(s)Non-Specific Servers Monthly Subscriptions-VolumeLicense M365 E3 Fro 640 $290.40 185,856.00$
AAD-34704 M365 E3 GCC Unified ShrdSvr ALNG SubsVL MVL PerUsr Enterprise 6Enterprise D 1 Month(s)Non-Specific Servers Monthly Subscriptions-VolumeLicense M365 E3 Ful 60 $347.35 20,841.00$
T2N-00005 O365GCCE5 ShrdSvr ALNG SU MVL O365GCCE3 PerUsr Enterprise 6Enterprise D 1 Month(s)Non-Specific Applications Step Up Office 365 G 700 $159.59 111,713.00$ T2N-00001 O365GCCE5 ShrdSvr ALNG SubsVL MVL PerUsr Enterprise 6Enterprise D 1 Month(s)Non-Specific Applications Monthly Subscriptions-VolumeLicense Office 365 G 80 $372.37 29,789.60$
Additional Products
J5U-00001 Azure prepayment - US Gov Enterprise 6Additional P D 1 Month(s)Non-Specific Servers Monthly Subscriptions-VolumeLicense Azure Monet 1 $1,209.00 1,209.00$
1 Year Tota:490,164.98$
3 Year Total:1,470,494.94$
Confidential.AS IS Thank you for the opportunity to quote.
+:.
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1 1 1 1 1
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1926 Agenda Date:11/10/2021 Agenda Item No:7.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
PROPERTY MANAGEMENT SERVICES FOR 18350 MT. LANGLEY STREET AND 18368-18375-
18381-18384 BANDILIER CIRCLE, FOUNTAIN VALLEY
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
Approve Amendment No. 5 to the sole source agreement with The Muller Company for Property
Management Services for 18350 Mt. Langley Street and 18368-18375-18381- 18384 Bandilier Circle
in Fountain Valley, for the period of January 1, 2022 through January 31, 2023 for a management fee
of $3,200 per month plus other incurred expenses, including an additional renewal period of twelve
(12) months.
BACKGROUND
The Orange County Sanitation District (OC San) Board of Directors previously approved a sole
source agreement with The Muller Company for property management services for District-owned
buildings at 18350 Mt Langley Street and 18368-18375-18381-18384 Bandilier Circle in Fountain
Valley. The properties are occupied by staff and commercial tenants with leases that expire in 2021
and 2023.
OC San purchased these properties as part of its overall strategy to build its Headquarters facilities
and maximize the land available for treatment plant process area. This strategy is not fully
implemented as OC San has just begun construction on the new Headquarters and is completing a
study of long-term options for its laboratory facilities. Once the study is complete, OC San will have a
better vision of its long-term property needs. Pending these decisions, OC San requires property
management services.
RELEVANT STANDARDS
·Protect OC San assets
PROBLEM
OC San-owned properties have commercial tenants and there is a need to professionally manage
them utilizing services such as maintenance, tenant relations, and repairs.
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OC6SAN
ORANGE COUNTY SANITATION DISTRICT
File #:2021-1926 Agenda Date:11/10/2021 Agenda Item No:7.
PROPOSED SOLUTION
Extend the current sole source property management agreement until the properties are repurposed.
TIMING CONCERNS
The current property management agreement expires on December 31, 2021.
RAMIFICATIONS OF NOT TAKING ACTION
OC San will lose continuity of care of the property and of services to tenants.
PRIOR COMMITTEE/BOARD ACTIONS
July 2020 -Approved Amendment No.4 with the The Muller Company,LLC for Property
Management Services to extend the services for ten months,from September 1,2020 through June
30,2021 with an option to extend through December 31,2021 along with all terms and provisions of
the Agreement remaining unmodified and in full force and effect.
May 2019 -Approved Amendment No.3 with The Muller Company,LLC for Property Management
Services to extend the services for twelve months,from September 1,2019 through August 31,2020
with all terms and provisions of the Agreement remaining unmodified and in full force and effect.
September 2018 -Approved Amendment No.1 with The Muller Company for Property Management
Services for an additional management fee plus other incurred expenses,for the addition of
Sanitation District acquired properties on Bandilier Circle and Pacific Street including two additional
renewal periods of six months each.
February 2018 -Approved a sole source agreement with The Muller Company for Property
Management Services,for the period of March 1,2018 through August 31,2018 for a management
fee plus other incurred expenses, including two additional renewal periods of six months each.
ADDITIONAL INFORMATION
Monthly expenses for services such as utility bills and repair work vary month to month.All expenses
will be reviewed and approved by OC San staff.
CEQA
N/A
FINANCIAL CONSIDERATIONS
The property management costs will be offset by rents collected on the commercial leases.
Orange County Sanitation District Printed on 11/2/2021Page 2 of 3
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File #:2021-1926 Agenda Date:11/10/2021 Agenda Item No:7.
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
·Amendment No. 5
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-1-
AMENDMENT NO. 5 TO MANAGEMENT AGREEMENT
This AMENDMENT NO. 5 TO MANAGEMENT AGREEMENT ("Amendment") is made and entered into effective as of September 8, 2021 by and between ORANGE COUNTY SANITATION DISTRICT, a county sanitation district duly organized and existing pursuant to Section 4700 et. seq. of the Health & Safety Code of
the State of California ("Owner"), and THE MULLER COMPANY, LLC ("Manager").
R E C I T A L S :
A. Owner and Manager entered into that certain Management Agreement dated as of February 28,
2018, Amendment No 1 dated August 28, 2018, Amendment No 2 dated February 28, 2019, Amendment No 3 dated May 22, 2019 and Amendment No 4 dated July 22, 2020 (collectively the "Agreement") pursuant to which Owner contracted with Manager to provide management services for 18350 Mount Langley, Fountain Valley, California, the "Property" and to provide management services for 18368, 18375, 18381, 18384 Bandilier Circle, Fountain Valley, California, the “Additional Properties” .
B. Except as otherwise set forth herein, all capitalized terms used in this Amendment shall have the same meaning given such terms in the Agreement.
C. Owner and Manager desire to amend the Agreement to change the Expiration Date and change the Management Fee and Properties, as hereinafter provided.
NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Parties agree to renew the Agreement for a thirteen (13) month term from
January 1, 2022 through January 31, 2023 (“Expiration Date”). 2. Parties agree to provide the Option to renew the Agreement for an additional twelve (12) month
term from February 1, 2023 through January 31, 2024 upon written notice.
3. The parties hereby agree that the Owner shall pay to Manager, as compensation for Manager’s management services, on a monthly basis, a management fee (the “Additional Properties Management Fee”) in the amount equal to $0.05/psf/month for the actual Additional Properties in addition to the existing Management Fee in the Agreement for the Property. The square footage of the Additional Properties and Additional Properties Management Fee per each individual Additional Property is as follows:
a. 18368 Bandilier Circle 6,000 sq.ft. $ 300.00/month b. 18375 Bandilier Circle 6,000 sq.ft. $ 300.00/month c. 18381 Bandilier Circle 6,000 sq.ft. $ 300.00/month d. 18384 Bandilier Circle 6,000 sq.ft. $ 300.00/month Total square footage: 24,000 @ $0.05/psf/month = $ 1,200.00/month
4. No Further Modification. Except as set forth in this Amendment No. 5, all of the terms and provisions of the Agreement shall remain unmodified and in full force and effect.
IN WITNESS WHEREOF, this Amendment has been executed as of the day and year first above written.
-2-
ORANGE COUNTY SANITATION DISTRICT
Dated: ____________________________ By:______________________________
John B. Withers, Chair, Board of Directors
Dated: ____________________________ By:______________________________
Kelly A. Lore, Clerk of the Board
Dated:____________________________ By:______________________________
Ruth Zintzun
Purchasing & Contracts Manager
THE MULLER COMPANY, LLC
Dated:____________________________ By:_____________________________ _Jon M Muller President___ Print Name and Title of Officer
80-036-0072
IRS Employer’s I.D. Number
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1952 Agenda Date:11/10/2021 Agenda Item No:8.
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 July 1, 2021 to September 30, 2021; and
B. Approve the following additions to the pre-approved OEM Sole Source List for the period of July 1, 2021 to
September 30, 2021:
·ACCUSONIC (A BRAND OF ADS LLC) - Maintenance and Repair of Accusonic Equipment
·DR. KRISTY FORSGREN - Fish Liver Histopathology Analysis and Reporting
·EATON - Uninterruptible Power Supply (UPS) Parts and Service
·MOBIUS INSTITUTE - Mobius iLearnReliabity Enterprise Training Product
·NIXON-EGLI EQUIPMENT CO. - Modifications & Custom Equipment Installation on Welder Service
Truck
·OVIVO - Trickling Filter Materials and Repairs
·TRIMBLE WATER - Trimble Unity Software and Support
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 (OC San) facilities because the parts and/or service can only be provided by the
OEM or their designated representative.
RELEVANT STANDARDS
·Quarterly financial reporting
·Ensure the public’s money is wisely spent
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OC6SAN
ORANGE COUNTY SANITATION DISTRICT
File #:2021-1952 Agenda Date:11/10/2021 Agenda Item No:8.
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.OC SAN-56,the General Manager has authority to approve
and execute purchases between $50,000 and $100,000.Below is a summary of General Manager approved purchases,
in amounts exceeding $50,000, for the first quarter of fiscal year 2021-22:
Vendor Name Amount Department Description/Discussion
ARAAD BUILDERS
INC
$76,650.00 Operations &
Maintenance
Maintenance Building Men’s Shower Stall
Replacement at Plant 2 Specification No. S-
2021-1248
BEAMEX, INC $56,838.00 Operations &
Maintenance
Blanket PO for BEAMEX 3 Year Care Plan
for Five (5) MC6, and Fourteen (14) External
(EXT) Modules 8//1/21 - 7/31/24 Board
Approved OEM Sole Source List M.O.
8/22/18, Item 7(B)
BEC BUILDING
ELECTRONIC
CONTROLS INC
$90,000.00 Operations &
Maintenance
Convenience Blanket PO for Emergency
Response to Fire Alarm Systems at Plants 1
& 2 8/16/21 - 8/15/22 GM Article 2, Section
2.2 (b) (1)
CITY OF ANAHEIM $87,192.53 Engineering Reimbursement for Repair Costs to High
Voltage Underground Cable Damage Sole
Source Justification 2461 Reason: Unique
Product/Service
E&M ELECTRIC AND
MACHINERY INC.
$80,335.00 Administrative
Services
Annual PO for Wonderware Premium First
Level Support Service 4/7/21 - 4/6/22 Board
Approved OEM Sole Source List M.O.
8/28/19, Item 3(B)
FRANKLIN COVEY
CLIENT SALES, INC.
$58,350.00 Operations &
Maintenance
Blanket PO for All Access Pass Training &
License Agreement Sole Source
Justification 2479 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 Board Approved
OEM Sole Source List M.O. 9/23/20, Item
12(B)
INNOVATIVE
ENGINEERING AND
MAINTENANCE
$90,000.00 Operations &
Maintenance
Convenience Blanket PO for Urgent
Operational Support at Plants 1 & 2 9/1/21 -
8/31/23 GM Article 2, Section 2.2 (b) (1)
JAMISON
ENGINEERING
CONTRACTORS INC
$90,000.00 Operations &
Maintenance
Convenience Blanket PO for Urgent
Operational Support at Plants 1 & 2 9/1/21 -
8/31/23 GM Article 2, Section 2.2 (b) (1)
MICROSOFT
CORPORATION
$97,319.00 Administrative
Services
Annual PO for Microsoft Premier Support
Services 9/17/21 - 9/16/22 Board Approved
OEM Sole Source List M.O. 12/14/16, Item
12(B)
MONTEREY BAY
AQUARIUM
RESEARCH
INSTITUTE
$60,000.00 Environmental
Services
Blanket PO for Ocean Acid Monitoring 8/1/21
- 7/31/22 with 4 Optional Renewal Periods
Sole Source Justification 2431 Reason:
Unique Product/Service
ONESOURCE
DISTRIBUTORS INC
$80,000.00 Operations &
Maintenance
Trickling Filter Pump Station VFD
Replacement for C1 Pump at Plant 2 Board
Approved OEM Sole Source List M.O.
11/20/19, Item 15(B)
OVIVO USA, LLC $73,562.40 Administrative
Services
Stock Item Purchase of Stabilizer Bearing
Assembly (Trickling Filter) Parts Board
Approved OEM Sole Source List M.O.
2/28/18, Item 13(B)
POWERFLO
PRODUCTS INC
$67,549.00 Operations &
Maintenance
Purchase of Bay Bridge Pump (Goulds
Model ECD12x14-19) Station Repair Parts
Sole Source Justification 2483 Reason:
Manufacturer Limits Quotes to One Vendor
ROCKWELL
ENGINEERING &
EQUIPMENT CO
$70,759.49 Operations &
Maintenance
Purchase of Two (2) Vaughan Recirculator
Pumps Board Approved OEM Sole Source
List M.O. 12/14/16, Item 12(B)
SCHWING BIOSET $95,000.00 Operations &
Maintenance
Blanket PO to Provide Services for Hydraulic
Units at Plant 1 Truckloading and
Dewatering 10/1/21 - 9/30/23 Board
Approved OEM Sole Source List M.O.
12/14/16, Item 12(B)
SUEZ WTS
SERVICES USA, INC.
$96,770.44 Operations &
Maintenance
Purchase of Spare Drive Shaft Assembly for
Barscreen Reliability at Plant 2 Board
Approved OEM Sole Source List M.O.
8/23/17, Item 9(B)
SUPERIOR
ELECTRIC MOTOR
SERVICE
$56,257.46 Administrative
Services
Stock Item Purchase of One (1) Toshiba 500
HP Electric Motor REF. 39085-OQ (Line Item
#3)
VAPEX PRODUCTS,
INC.
$75,000.00 Operations &
Maintenance
Purchase and Installation of One (1) New
VAPEX S5 Unit for Primary Scrubbers 5 & 6
and Upgrade H2S Unit to Vapex S5 for
Primary Scrubbers 7 & 8 Sole Source
Justification 2454 Reason: OEM
Equipment/Part/Service
WEST COAST
ARBORISTS, INC.
$80,000.00 Operations &
Maintenance
Annual PO for Tree Pruning, Removal and
Stump Grinding 9/1/21 - 8/31/22 County of
Orange Contract# MA-012-22010006, in
Accordance with Ordinance OC SAN-56
Section 2.03 (B) Cooperative Purchases
WESTAIR GASES &
EQUIPMENT INC
$95,000.00 Operations &
Maintenance
Blanket PO for the Purchase of Bulk Liquid
Oxygen (LOX) Per Technical Specifications
8/20/2021 - 8/19/2022 Sole Source
Justification 2435 Reason: Emergency
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File #:2021-1952 Agenda Date:11/10/2021 Agenda Item No:8.
Vendor Name Amount Department Description/DiscussionARAAD BUILDERSINC $76,650.00 Operations &Maintenance Maintenance Building Men’s Shower StallReplacement at Plant 2 Specification No. S-2021-1248BEAMEX, INC $56,838.00 Operations &Maintenance Blanket PO for BEAMEX 3 Year Care Planfor Five (5) MC6, and Fourteen (14) External(EXT) Modules 8//1/21 - 7/31/24 BoardApproved OEM Sole Source List M.O.8/22/18, Item 7(B)BEC BUILDINGELECTRONICCONTROLS INC $90,000.00 Operations &Maintenance Convenience Blanket PO for EmergencyResponse to Fire Alarm Systems at Plants 1& 2 8/16/21 - 8/15/22 GM Article 2, Section2.2 (b) (1)CITY OF ANAHEIM $87,192.53 Engineering Reimbursement for Repair Costs to HighVoltage Underground Cable Damage SoleSource Justification 2461 Reason: UniqueProduct/ServiceE&M ELECTRIC ANDMACHINERY INC.$80,335.00 AdministrativeServices Annual PO for Wonderware Premium FirstLevel Support Service 4/7/21 - 4/6/22 BoardApproved OEM Sole Source List M.O.8/28/19, Item 3(B)FRANKLIN COVEYCLIENT SALES, INC.$58,350.00 Operations &Maintenance Blanket PO for All Access Pass Training &License Agreement Sole SourceJustification 2479 Reason: UniqueProduct/ServiceGEA MECHANICALEQUIPMENT US,INC.$95,000.00 Operations &Maintenance On-call Maintenance Service Contract for P1-101 GEA Westfalia Thickening andDewatering Centrifuges Board ApprovedOEM Sole Source List M.O. 9/23/20, Item12(B)INNOVATIVEENGINEERING ANDMAINTENANCE $90,000.00 Operations &Maintenance Convenience Blanket PO for UrgentOperational Support at Plants 1 & 2 9/1/21 -8/31/23 GM Article 2, Section 2.2 (b) (1)JAMISONENGINEERINGCONTRACTORS INC $90,000.00 Operations &Maintenance Convenience Blanket PO for UrgentOperational Support at Plants 1 & 2 9/1/21 -8/31/23 GM Article 2, Section 2.2 (b) (1)
MICROSOFT
CORPORATION
$97,319.00 Administrative
Services
Annual PO for Microsoft Premier Support
Services 9/17/21 - 9/16/22 Board Approved
OEM Sole Source List M.O. 12/14/16, Item
12(B)
MONTEREY BAY
AQUARIUM
RESEARCH
INSTITUTE
$60,000.00 Environmental
Services
Blanket PO for Ocean Acid Monitoring 8/1/21
- 7/31/22 with 4 Optional Renewal Periods
Sole Source Justification 2431 Reason:
Unique Product/Service
ONESOURCE
DISTRIBUTORS INC
$80,000.00 Operations &
Maintenance
Trickling Filter Pump Station VFD
Replacement for C1 Pump at Plant 2 Board
Approved OEM Sole Source List M.O.
11/20/19, Item 15(B)
OVIVO USA, LLC $73,562.40 Administrative
Services
Stock Item Purchase of Stabilizer Bearing
Assembly (Trickling Filter) Parts Board
Approved OEM Sole Source List M.O.
2/28/18, Item 13(B)
POWERFLO
PRODUCTS INC
$67,549.00 Operations &
Maintenance
Purchase of Bay Bridge Pump (Goulds
Model ECD12x14-19) Station Repair Parts
Sole Source Justification 2483 Reason:
Manufacturer Limits Quotes to One Vendor
ROCKWELL
ENGINEERING &
EQUIPMENT CO
$70,759.49 Operations &
Maintenance
Purchase of Two (2) Vaughan Recirculator
Pumps Board Approved OEM Sole Source
List M.O. 12/14/16, Item 12(B)
SCHWING BIOSET $95,000.00 Operations &
Maintenance
Blanket PO to Provide Services for Hydraulic
Units at Plant 1 Truckloading and
Dewatering 10/1/21 - 9/30/23 Board
Approved OEM Sole Source List M.O.
12/14/16, Item 12(B)
SUEZ WTS
SERVICES USA, INC.
$96,770.44 Operations &
Maintenance
Purchase of Spare Drive Shaft Assembly for
Barscreen Reliability at Plant 2 Board
Approved OEM Sole Source List M.O.
8/23/17, Item 9(B)
SUPERIOR
ELECTRIC MOTOR
SERVICE
$56,257.46 Administrative
Services
Stock Item Purchase of One (1) Toshiba 500
HP Electric Motor REF. 39085-OQ (Line Item
#3)
VAPEX PRODUCTS,
INC.
$75,000.00 Operations &
Maintenance
Purchase and Installation of One (1) New
VAPEX S5 Unit for Primary Scrubbers 5 & 6
and Upgrade H2S Unit to Vapex S5 for
Primary Scrubbers 7 & 8 Sole Source
Justification 2454 Reason: OEM
Equipment/Part/Service
WEST COAST
ARBORISTS, INC.
$80,000.00 Operations &
Maintenance
Annual PO for Tree Pruning, Removal and
Stump Grinding 9/1/21 - 8/31/22 County of
Orange Contract# MA-012-22010006, in
Accordance with Ordinance OC SAN-56
Section 2.03 (B) Cooperative Purchases
WESTAIR GASES &
EQUIPMENT INC
$95,000.00 Operations &
Maintenance
Blanket PO for the Purchase of Bulk Liquid
Oxygen (LOX) Per Technical Specifications
8/20/2021 - 8/19/2022 Sole Source
Justification 2435 Reason: Emergency
Additionally,in accordance with Board purchasing policies,Ordinance No.OC SAN-56,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 first quarter of fiscal year
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File #:2021-1952 Agenda Date:11/10/2021 Agenda Item No:8.
and repair Services Task Orders,in amounts exceeding $50,000,for the first quarter of fiscal year
2021-22:
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:
N/A
Orange County Sanitation District Printed on 11/2/2021Page 4 of 4
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ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1907 Agenda Date:11/10/2021 Agenda Item No:9.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
IMPLEMENTATION OF SERVICENOW IT SERVICE MANAGEMENT SOFTWARE
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Professional Services Agreement to Computer Aid, Inc. (CAI) to provide
ServiceNow IT Service Management software and implementation services, Specification No.
CS-2021-1244BD, for a total amount not to exceed $474,505; and
B. Approve a contingency of 47,451 (10%).
BACKGROUND
The current Information Technology Service Management system (ITSM), BMC Footprints, utilized by
the Orange County Sanitation District (OC San) was implemented in 2013 and provides basic
functionality including service requests, incident, change, release, and inventory management
capabilities. The system was implemented by OC San’s Information Technology (IT) division to track,
manage, and deliver its portfolio of IT services.
The IT division processes on average over 800 requests a month utilizing this antiquated and often
slow system. The ITSM system is the primary system used to track the division’s day-to-day
operations and ensure that all activities are conducted effectively and efficiently with available
resources. Without an ITSM system the division would not be able to consistently provide the level of
IT service required by OC San.
RELEVANT STANDARDS
·Maintain a culture of improving efficiency to reduce the cost to provide the current service level
or standard
·Protect OC San assets
·Ensure the public’s money is wisely spent
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OC6SAN
ORANGE COUNTY SANITATION DISTRICT
File #:2021-1907 Agenda Date:11/10/2021 Agenda Item No:9.
PROBLEM
OC San’s current ITSM solution is antiquated and requires substantial resources to support and
maintain.The system is hosted on premises,which requires constant attention by IT staff to ensure it
is operational and compliant with security standards.Additionally,the system lacks advanced
capabilities that a mature IT organization requires such as intelligent automation,native mobile
application,performance analytics,live dashboards,and user self-service.Further,the current
system does not have the ability to natively interface with other critical applications and services in
use by the OC San IT Service Desk.The lack of modern functions and inability to integrate with 3rd
party services creates significant inefficiencies for staff and related business processes.
PROPOSED SOLUTION
To ensure that IT services are delivered effectively and efficiently,the IT division requests to purchase
ServiceNow and related professional services to install and configure the system.ServiceNow,the
leader in the ITSM industry,offers a cloud-hosted solution that provides a full suite of modern ITSM
capabilities.ServiceNow’s intuitive and easy-to-use interface creates strong synergies between
information technology organizations and the customers they serve,enabling efficient and cost-
effective service.Additionally,ServiceNow has an integration hub that allows for seamless
integration with many of the systems that OC San already utilizes.This will enable OC San to realize
the full value and potential of current IT investments.The result for OC San will be improved service
delivery, increased efficiency, and an improvement to the end user experience for all staff.
TIMING CONCERNS
Proper tracking and management of IT services is imperative for the continued support of OC San
business and plant operations.
RAMIFICATIONS OF NOT TAKING ACTION
The decision not to purchase the ServiceNow ITSM system and related professional services will
result in continued administrative inefficiencies.This will negatively impact the IT’s division ability to
provide high quality service and prolong operational inefficiencies for staff members.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
A Request for Proposal was advertised on June 10,2021.OC San received six responsive
proposals valid for 180 calendar days from the opening.Proposals were received on July 16,2021
from Computer Aid,Inc.(CAI);CDW Government,LLC;ClarusTec,Inc.;Enterprise Networking
Solutions,Inc.;Red River Technology,LLC;and RSM US,LLP.A Staff Evaluation Committee
consisting of four representatives from the IT division reviewed and ranked each of the proposals in
accordance with the evaluation process set in the OC San Purchasing Ordinance.A representative
from the Purchasing and Contracts Administration division participated in the evaluation process as a
non-voting member.The proposals were evaluated according to work plan;understanding andOrange County Sanitation District Printed on 11/3/2021Page 2 of 4
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File #:2021-1907 Agenda Date:11/10/2021 Agenda Item No:9.
non-voting member.The proposals were evaluated according to work plan;understanding and
approach; related experience; and team and staff qualifications.
Individual scoring was the chosen method of evaluation for this procurement.Members of the team
performed an independent review of the proposals and later met as a group with the Buyer to discuss
their preliminary scores and discuss any questions/concerns they had.Proposals were evaluated
based on the following criteria:
Criterion Weight
Work Plan 25%
Qualifications & Experience of Firm 25%
Proposed Staffing & Project Organization 20%
Interview 10%
Cost 20%
The evaluation team first reviewed and scored the proposals based upon the criteria listed above,
other than cost.
Rank Proposer Criterion 1
(Max 25%)
Criterion 2
(Max 25%)
Criterion 3
(Max 20%)
Subtotal
Score (Max
70%)
1 Computer Aid, Inc.
(CAI)
22%23%17%62%
2 Red River Technology,
LLC
18%18%14%50%
3 Enterprise Networking
Solutions, Inc.
18%15%12%45%
4 RSM US, LLP 17%15%11%43%
5 CDW Government, LLC 13%17%10%40%
6 ClarusTec, Inc.14%11%10%35%
The two highest ranking firms,Computer Aid,Inc.(CAI)and Red River,Inc.were selected for
interviews.The interviews were conducted on September 1,2021.Following the interviews,the
evaluation team ranked the firms based on both the proposals and interviews using the evaluation
criteria and weighting listed above.
Rank Proposer Subtotal Score
(Max 70%)
Presentation
(Max 10%)
Total Score
without cost
(Max 80%)
1 Computer Aid, Inc. (CAI)62%9%71%
2 Red River Technology,
LLC
50%8%58%
All proposals were accompanied by a sealed cost proposal.Only the cost proposals for the two
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File #:2021-1907 Agenda Date:11/10/2021 Agenda Item No:9.
All proposals were accompanied by a sealed cost proposal.Only the cost proposals for the two
highest ranked firms were opened and negotiated.
Rank Proposer Subtotal Score
without cost
(Max 80%)
Cost (Max 20%)Total Weighted
Score (Max
100%)
1 Computer Aid, Inc. (CAI)71%20%91%
2 Red River Technology,
LLC
58%16%74%
Rank Proposer Original Cost BAFO (if
applicable)
1 Computer Aid, Inc. (CAI)$598,938 $474,505.00
2 Red River Technology,
LLC
$618,430.15 $596,495.23
References were contacted and verified for the two top-ranked firms.Based on their review of the
proposals,references,interviews and cost proposals,the Evaluation Committee unanimously scored
Computer Aid, Inc. (CAI) as the most qualified firm.
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San’s Purchasing Ordinance.This item has been budgeted.(FY2020-
21 & 2021-22 Budget, Section 8, Page 49, Information Technology Capital Program (M-MC-IT)).
Date of Approval Contract Amount Contingency
11/17/2021 $474,505 $47,451
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
·Draft Professional Consultant Services Agreement
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Orange County Sanitation District 1 of 16 Specification No. CS-2021-1244BD Revision 031021
PROFESSIONAL CONSULTANT SERVICES AGREEMENT ServiceNow IT Service Management (“ITSM”) Implementation Specification No. CS-2021-1244
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 "OC San") and [______________________] with a principal place of business at [___________________________] (hereinafter referred to as "Consultant") collectively referred to as the “Parties”.
W I T N E S S E T H
WHEREAS, based on Consultant’s expertise and experience, OC San desires to temporarily engage Consultant to provide ServiceNow IT Service Management (“ITSM”) Implementation "Services” as described in Exhibit “A”; and
WHEREAS, Consultant submitted its Proposal, dated [_______]; and
WHEREAS, on [____________________], the Board of Directors, by minute order, authorized execution of this Agreement between OC San and Consultant; and
WHEREAS, OC San has chosen Consultant to conduct Services in accordance with Ordinance No. OCSD-52; and
NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agree as follows:
1. Definitions 1.1. As-Built Documentation. The term “As-Built Documentation” means the Baseline Documentation plus the Documentation for any Configuration Changes and Customization Modifications. All “As-Built Documentation” shall supplement and not conflict with the terms of this Agreement. In the event of a conflict, the terms of this Agreement shall prevail. 1.2. Configuration Changes. The term “Configuration Changes” is defined as any modification or changes other than a Custom Modification.
1.3. Consultant Application Software. The term “Consultant Application Software” is defined as any Software owned or sublicensed, installed and/or configured by Consultant as a
component of the Services provided, whether in machine readable or printed form, including, but not limited to any applications, modules, subsystems, Interfaces, Configuration Changes, Custom Modifications, Updates and Documentation.
1.4. Custom Modification. The term “Custom Modification” is defined as a modification of the Consultant Application Software Source Code or data base structure, which provides new or improved functions or features to address specific requirements of this Agreement. 1.5. Defect. The term “Defect” is defined as any error, failure, deficiency, or any other unacceptable variance or failure of the System or any component thereof to fully conform to the warranties and requirements described in this Agreement. With respect to the Consultant Application Software, the term “Defect” is defined as any error, failure, or deficiency or any other unacceptable variance from any required, specified, or expected
Orange County Sanitation District 2 of 16 Specification No. CS-2021-1244BD Revision 031021
program behaviors as may be required by OC San or necessary for the Consultant Application Software to operate correctly and in full compliance with the terms of this
Agreement. This includes expected program behaviors as described in any Consultant Application Software Documentation. In the event of a conflict between this Agreement and Documentation provided by Consultant to OC San, the terms and conditions of this
Agreement shall prevail. 1.6. Documentation. The term “Documentation” is defined as all written, electronic, or recorded works including all “As-Built Documentation” that describe the uses, features, functional capabilities, performance standards, and reliability standards of the System, or any subsystem, component, or Interface, and that are published or provided to OC San by Consultant or its subcontractors, including, without limitation, all end user and System administrator manuals, help files, training aids and manuals, training and support guides, program listings, data models, flow charts, logic diagrams, and other materials related to or for use with the System.
1.7. Final System Acceptance. The term “Final System Acceptance” shall be defined as that date on which all Services under Section Titled “Project Scope and Deliverable” of Exhibit “A” Scope of Work have been successfully completed by Consultant and accepted by OC
San. 1.8. Fix Pack. The term “Fix Pack” is defined as a formal release of programming code and
Documentation that provides corrections to any Consultant Application Software programs including, but not limited to, bug fixes, error corrections and patches. 1.9. Functional, Performance and Reliability Specifications and Requirements. The term “Functional, Performance and Reliability Specifications and Requirements” is defined as all definitions, descriptions, requirements, criteria, warranties, and performance standards relating to the System set forth in: (a) this Agreement; (b) any mutually agreed upon Change Orders pursuant to Section 4, Modification to Exhibit “A” Scope of Work; and (c) any functional and/or technical specifications which are published or provided by Consultant or its licensors or suppliers from time to time with respect to the System or any Products.
1.10. Interfaces. The term “Interfaces” is defined as one or more of the specialized software applications developed or sublicensed by Consultant and installed as a part of the Project for the purpose of sharing information (data) between Consultant and/or Consultant
Application Software and any other software program or device. Functional requirements for each Interface to be included as a part of the System are provided Exhibit “A”, Scope of Work.
1.11. Products. The term “Products” is defined as all Software listed in the “Exhibit “A” Scope of Work. 1.12. Project. The term “Project” is defined as the totality of Consultant’s obligation under this Agreement to develop, supply, install, configure, test, implement and maintain the System. 1.13. Services. The term “Services” is defined as the implementation, development, training, configuration, loading, testing, project management and other services to be provided by Consultant under this Agreement, including, without limitation, the tasks detailed in Exhibit “A”, Scope of Work.
Orange County Sanitation District 3 of 16 Specification No. CS-2021-1244BD Revision 031021
1.14. Software. The term “Software” includes the following components provided and licensed by Consultant under this Agreement: (a) Consultant Application Software; (b) Third-Party
Software; (c) Custom Modifications and (d) Interfaces. 1.15. System. The term “System” is defined as the collective whole of all Products and Services
to be purchased, developed, licensed, supplied, installed, configured, tested and implemented by Consultant under this Agreement. 1.16. System Administrator Documentation. Is defined as that portion of the Documentation addressing the operation and maintenance functions of the System. 1.17. Third-Party Software. The term “Third-Party Software” is defined as any Software to be supplied under this Agreement that is purchased or licensed directly from any source external to Consultant for use with or integration into the System. 1.18. Updates. The term “Updates” is defined as modifications, improvements, additions, and
corrections to the Products and/or related Documentation, including functional and/or product enhancements, bug fixes, patches, new releases, new versions, and replacement modules or products that Consultant makes generally available to its customers with or
without an additional fee. 1.19. Go-Live Support. The term “Go-live Support” is as described in “Exhibit “A” Scope of
Work. 1.20. Work Product. The term “Work Product” is defined as the Products and Services and all other programs, algorithms, reports, information, designs, plans and other items developed by Consultant under this Agreement, including all partial, intermediate or preliminary versions thereof. 2. Miscellaneous 2.1. Amendments. No amendment or modification to this Agreement is valid unless it is contained in a writing signed by both parties. 2.2. Approvals in Writing. All approvals or consents required or contemplated by this Agreement must be in writing to be effective.
2.3. Successors and Assigns. This Agreement is binding on and inures to the benefit of the parties and their respective successors and assigns.
2.4. Advertising. Consultant shall not refer to the existence of this Agreement in any press release, advertising or materials distributed to prospective customers without the prior written consent of OC San.
2.5. This Agreement and all Exhibits hereto (called the "Agreement") is made by OC San and Consultant. The terms and conditions herein exclusively govern the purchase of Services as described in the Scope of Work Exhibit “A”. 2.6. Exhibits to this Agreement are incorporated by reference and made a part of this Agreement as though fully set forth at length herein. Exhibit “A”Scope of Work Exhibit “B”Proposal Exhibit “C”Determined Insurance Requirement Form
Orange County Sanitation District 4 of 16 Specification No. CS-2021-1244BD Revision 031021
Exhibit “D”Contractor Safety Standards Exhibit “E”Human Resources Policies
2.7. 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. 2.8. 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. 2.9. 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. 2.10. Work Hours: The work required under this Agreement may include normal business hours, evenings, and weekends. OC San will not pay for travel time.
2.11. The term “days”, when used in the Agreement, shall mean calendar days, unless otherwise noted as workdays.
2.12. The term “workday”. Workdays are defined as all days that are not Saturday and Sunday, or OC San observed holidays. Meetings with OC San staff shall be scheduled from Monday
through Thursday between the hours of 8 a.m. and 4 p.m. (exception is Operations staff who maintain plant operations 24/7 and work a rotated 12-hour shift) and shall conform to OC San work schedules. OC San review periods shall not include OC San observed holidays. 2.13. OC San holidays (non-working days) are as follows: New Year’s Day, Lincoln’s Birthday, Presidents’ Day Monday, Memorial Day Monday, Independence Day, Labor Day Monday, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 2.14. Consultant shall provide OC San with all required premiums and/or overtime work at no charge beyond the total amount of the Agreement.
2.15. Except as expressly provided otherwise, OC San 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 OC San. 3. Scope of Work Subject to the terms of this Agreement, Consultant shall perform the Services
identified in Exhibit “A” Scope of Work. Consultant warrants that all of its Services shall be performed in a competent, professional, and satisfactory manner.
4. Transition Consultant shall work with OC San to ensure a smooth and efficient transition from OC San’s current system to the new System and to minimize disruption to current operations, even if it necessitates working late evening, early morning, or weekend hours. Any required disruptions to OC San’s operations shall be scheduled in advance and approved by OC San. 5. Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder
can be made by OC San 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 OC San and Consultant and the Agreement period adjusted accordingly.
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6. Final System Acceptance The approval of Consultant to use Consultant Application Software and Third Party Software and OC San’s use of it shall not constitute a waiver of OC
San’s right to reject the System, in whole or in part, if the requirements for Final System Acceptance are not met.
7. Compensation Compensation to be paid by OC San to Consultant for the Services provided under this Agreement shall be a total amount not to exceed [________________] Dollars ($[________].00).
8. California Department of Industrial Relations (DIR)Registration and Record of Wages 8.1. 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. 8.2. 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.
8.3. Pursuant to Labor Code Section 1776, the Consultant and subconsultants shall furnish a copy of all certified payroll records to OC San and/or general public upon request, provided the public request is made through OC San, the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement of the Department of Industrial Relations. 8.4. 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).
9. Payment and Invoicing 9.1. OC San shall pay, net thirty (30) days, upon receipt and approval, by OC San’s Project Manager or designee, of itemized invoices submitted for Milestones completed in accordance with Exhibit “A”. OC San, at its sole discretion, shall be the determining party as to whether the Milestones have been satisfactorily completed.
9.2. Invoices shall be emailed by Consultant to OC San Accounts Payable at APStaff@OCSD.com and “INVOICE” with the Purchase Order Number and CS-2021-
1244BD shall be referenced in the subject line.
10. Audit Rights Consultant agrees that, during the term of this Agreement and for a period of three (3) years after its termination, OC San 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.
11. Commencement and Term The Services provided under this Agreement shall be completed within 270 calendar days from the effective date of the Notice to Proceed.
12. Extensions The term of this Agreement may be extended only by written instrument signed by both Parties.
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13. Performance Time is of the essence in the performance of the provisions hereof.
14. Termination 14.1. OC San 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 OC San. Upon receipt of a
termination notice, Consultant shall immediately discontinue all work under this Agreement (unless the notice directs otherwise). OC San 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 OC San from any further fee, cost or claim hereunder by Consultant other than for work performed to the date of termination. 14.2. OC San reserves the right to terminate this Agreement immediately upon OC San’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. 14.3. OC San 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. 14.4. All OC San property in the possession or control of Consultant shall be returned by Consultant to OC San on demand, or at the termination of this Agreement, whichever occurs first. 15. Indemnification and Hold Harmless Provision Consultant shall assume all responsibility for damages to property and/or injuries to persons, including accidental death, which may arise out of or be caused by Consultant's services under this Agreement, or by its subconsultant(s) or by anyone directly or indirectly employed by Consultant, and whether such damage or injury shall accrue or be discovered before or after the termination of the Agreement. Except as to the sole active negligence of or willful misconduct of OC San, Consultant shall indemnify, protect, defend and hold harmless OC San, 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 OC San, and with well qualified, adequately insured, and experienced legal counsel acceptable to OC San.
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This section shall survive the expiration or early termination of the Agreement.
16. Insurance Consultant and all subconsultants shall purchase and maintain, throughout the life of this Agreement and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Determined Insurance Requirement Form, Exhibit
“C“. Consultant shall not commence work under this Agreement until all required insurance is obtained in a form acceptable to OC San, 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.
17. Warranty 17.1. System Warranty. Consultant warrants that the System will meet the Functional, Performance and Reliability Specifications and Requirements as defined in this Agreement. The System and/or each of its subsystems, components and Interfaces will be capable of operating fully and correctly in conjunction with the System Hardware. Consultant warrants that for the term of this Agreement, the System will perform as described in Exhibit “A” Scope of Work, [Exhibit “B” and Exhibit “B-1” Cost Proposal Form], respectively and in material and workmanship and will remain in good working order. In the event the System
does not meet these warranties, Consultant shall provide, at no charge, the necessary software, hardware, and/or services required to attain the levels or standards contained in these warranties.
17.2. Application Software
17.2.1. All Consultant Application Software licensed under this Agreement is free of known Defects, viruses, worms and Trojan horses, or otherwise (except for documented security measures such as password expiration functions); 17.2.2. During the term of the Agreement; the Consultant Application Software will meet or exceed the Functional, Performance and Reliability Specifications and Requirements herein; 17.2.3. Consultant Application Software is and will be general release versions that have been fully tested at Consultant's site in accordance with best industry practices, and are not beta or pre-release versions (unless agreed to in writing by OC San); and,
17.2.4. Custom Modifications and Interfaces have been fully tested in accordance with best industry practices and are free of known Defects. Consultant further agrees that
during the term of this Agreement, Consultant will provide OC San, if OC San so desires, with any Updates at no additional cost (including any and all costs associated with the installation of those Updates) immediately upon their commercial
availability to any other entity. 17.3. Work Quality Warranty. Consultant warrants that all work performed by Consultant and/or its subcontractors under this Agreement will conform to best industry practices and will be performed in a professional and workmanlike manner by staff with the necessary skills, experience and knowledge to do so. 17.4. Regulatory Warranty. Consultant warrants that, for the Term of this Agreement, the System will comply with all processing and reporting requirements for State and Federal laws, and regulations. If the Software requires updating due to a change in a State or Federal law, or regulation, affecting OC San, Consultant will provide these changes per a
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mutually agreed to schedule at no additional charge to OC San. Notwithstanding this provision, in no event shall Consultant provide said update later than the date required by
the State or Federal law or regulation affecting OC San. In the event OC San is notified of a change in State or Federal law or regulations that requires updating the Software, OC San will notify Consultant of that change as soon as reasonably possible.
17.5. Documentation Warranty. Consultant warrants that, for the Term of this Agreement, the Documentation for all licensed Consultant Application Software will be complete and accurate in all material respects. The Documentation will be revised to reflect all Updates and Interfaces provided by Consultant under this Agreement. This includes Documentation on any Custom Modification or Configuration Changes made to the System by Consultant during the installation process. 17.6. Service Warranty. During the term of this Agreement, Consultant warrants that it will remedy any failure, malfunction, Defect or nonconformity in the System, as follows:
17.6.1. Priority One (P1) Defects. For purposes of this Warranty, a P1 Defect includes, but is not limited to, loss of data, data corruption, a System or subsystem abort, any condition where productive use of the System or any component thereof is prohibited
and no acceptable workaround is available. Examples of P1 Defects include, but are not limited to:
17.6.1.1. System is down 17.6.1.2. Application, module or Interface is down or non-operational 17.6.1.3. An Interface or application critical to System operation is substantially impaired or problematic 17.6.1.4. Loss of data or data corruption after data has been entered 17.6.1.5. A subsystem or component thereof is non-functional 17.6.1.6. Productive use is prohibited 17.6.1.7. two or more workstations or mobile devices lock up or malfunction intermittently 17.6.1.8. a user cannot log on to the System
17.6.2. Priority Two (P2) Defects. For purposes of this Warranty a P2 Defect includes, but is not limited to, compromise of the primary purpose of the System, subsystem or Interface to an external system. Productive use by the end user is substantially
impacted and an acceptable workaround is not available. Examples of P2 Defects include, but are not limited to:
17.6.2.1. a Software function does not work correctly (enter an example, if possible) 17.6.2.2. The user cannot produce a report with correct calculations 17.6.2.3. System, subsystem or an Interface performance is deemed unacceptable per the Functional, Performance, and Reliability Specifications and Requirements. 17.6.2.4. Incorrect cross streets are displayed on a verified address or location 17.6.2.5. Cannot create a scheduled event 17.6.2.6. A single workstation or mobile device locks up or malfunctions intermittently 17.6.3. Priority Three (P3) Defects. For purposes of this Warranty, a P3 Defect includes, but is not limited to, incomplete operation of a System component which impacts
productivity of staff but an acceptable workaround is generally available. Examples of P3 Defects include but are not limited to:
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17.6.3.1. Single workstation or mobile device locks up intermittently but infrequently 17.6.3.2. Minor deficiencies occur intermittently in any component of the System
17.6.3.3. A mapping function doesn’t work but the failure does not interfere with the user’s ability to perform required tasks 17.6.3.4. A report does not function or report provides incorrect results
17.6.3.5. An incorrect message is presented in a dialog box 17.6.4. Priority Four (P4) Defects. For purposes of this Warranty, a P4 Defect consists of those problems deemed by OC San to be mainly cosmetic. Examples of P4 Defects include, but are not limited to: 17.6.4.1. A misspelled word in the header of a report or in a help file 17.6.4.2. A minor error in output that does not interfere with the correct outputting of statistics from the system 17.6.4.3. Minor printing errors in a report that does not impede OC San’s ability to utilize the report for the required purpose.
17.6.4.4. Minor variances in text where the help file does not match the Documentation 17.6.4.5. Minor variances in text where the Documentation doesn’t match the
functionality but the System works properly 17.6.4.6. A print button doesn’t work but the user can still print without opening or closing multiple windows or loosing data or rebooting the System.
17.6.5. Multiple Failures. Any situation involving multiple, contemporaneous failures, regardless of their individual priorities, will be regarded as a Priority One Defect if, in OC San’s determination, the situation results in OC San having essentially no productive use of the System or a major subsystem. 17.6.6. Permanent Cure. If OC San accepts a workaround or other temporary cure as the remedy for any reported Defect, Consultant shall provide and install at no cost to OC San a permanent correction or cure and installation support within ten (10) days after the permanent cure becomes available.
17.6.7. Third-party Warranty Coverage. Third-party products are provided with a pass-thru-warranty from the original manufacturer.
18. 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 OC
San. If OC San 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 OC San's request. Consultant shall assign only competent personnel to perform Services
pursuant to this Agreement.
19. Confidentiality and Non Disclosure 19.1. Consultant acknowledges that in performing the Services hereunder, OC San may have to disclose to Consultant orally and in writing certain confidential information that OC San considers proprietary and has developed at great expense and effort.
19.2. Consultant agrees to maintain in confidence and not disclose to any person, firm, or corporation, without OC San's prior written consent, any trade secret or confidential information, knowledge or data relating to the products, process, or operation of OC San.
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19.3. 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. 19.4. 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 subconsultant 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 OC San's request, whichever occurs first.
• To hold in confidence information and materials, if any, developed pursuant to the Services hereunder.
19.5. The provisions of this section shall survive termination or expiration of this Agreement and shall continue for so long as the material remains confidential.
20. 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 OC San and shall be promptly delivered to OC San upon request of OC San’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 OC San 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 OC San's sole risk and without liability to Consultant. Consultant shall ensure that all its subconsultants shall provide for assignment to OC San of any documents or materials prepared by them.
21. Ownership of Intellectual Property 21.1. 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 OC San as its sole and exclusive property. 21.2. Consultant agrees to promptly disclose to OC San all such New Developments. Upon OC San's request, Consultant agrees to assist OC San, at OC San'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 OC San shall deem necessary to apply for and to assign or convey to OC San, 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.
21.3. Consultant warrants that Consultant has good title to any New Developments, and the
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right to assign New Developments to OC San free of any proprietary rights of any other party or any other encumbrance whatever.
21.4. 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 OC San. OC San may utilize these documents for OC San applications on other projects or extensions of this project, at its own risk. 22. Infringement Claims If an infringement claim occurs, Consultant has thirty (30) days after the receipt of OC San’s written notice of the claim or the date on which Consultant first becomes aware of the claim, whichever is sooner, to either: (a) procure for OC San the right to continue using the affected Product, Service, subsystem, component or Interface and deliver or provide the Product, Service, subsystem, component, or Interface to OC San; or (b) repair or replace the infringing Product, Service, subsystem, component, or Interface so that it becomes non-infringing, provided the performance of the System or any subsystems, components, or Interfaces is not adversely affected by the replacement or modification. In the event Consultant is unable to comply with either subsection (a) or (b) of this paragraph
within thirty (30) days, OC San may terminate this Agreement without any further obligation to Consultant. In the event of termination, in addition to any other legal remedies available to OC San, Consultant will refund OC San within ten (10) days of OC San’s notice of termination,
the license fees OC San paid to Consultant for the Product, Service, subsystem, component or Interface. If the inability to comply with either subsection (a) or (b) of this paragraph causes the System to fail to meet the Functional, Performance and Reliability Specifications and
Requirements or to otherwise become ineffective, Consultant will refund OC San all fees paid to Consultant under this Agreement.
23. No Solicitation of Employees 23.1. 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 OC San. 23.2. Consultant acknowledges that OC San’s employees are critical to its business and OC San expends significant resources to hire, employ, and train employees. Should Consultant
employ or otherwise engage OC San’s employees during the term of this Agreement and for a period of one (1) year following termination of this Agreement, Consultant will pay OC San fifty percent (50%) of the former employee’s most recent annual salary earned at OC
San to accurately reflect the reasonable value of OC San’s time and costs. This payment is in addition to any other rights and remedies OC San may have at law.
24. Independent Contractor Capacity 24.1. The relationship of Consultant to OC San is that of an independent contractor and nothing herein shall be construed as creating an employment or agency relationship. 24.2. Consultant shall act independently and not as an officer or employee of OC San. OC San 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. 24.3. Consultant shall not be considered an agent of OC San for any purpose whatsoever, nor shall Consultant have the right to, and shall not, commit OC San to any agreement, contract or undertaking. Consultant shall not use OC San’s name in its promotional material or for
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any advertising or publicity purposes without expressed written consent.
24.4. Consultant shall not be entitled to any benefits accorded to those individuals listed on OC San’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. 24.5. 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 OC San for any claims, losses, costs, fees, liabilities, damages or penalties suffered by OC San arising out of Consultant's breach of this provision. 24.6. Consultant shall not be eligible to join or participate in any benefit plans offered to those individuals listed on OC San'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 OC San misclassified Consultant for tax purposes.
25. Licenses, Permits Consultant represents and warrants to OC San 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.
26. 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.
27. 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 OC San, it shall immediately inform OC San of this and shall not proceed, except at Consultant’s risk, until written instructions are received from OC San.
28. Right to Review Services, Facilities, and Records 28.1. OC San 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.
28.2. Consultant shall furnish to OC San such reports, statistical data, and other information pertaining to Consultant's Services as shall be reasonably required by OC San 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. 28.3. The right of OC San 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.
29. 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
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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. 30. 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.
31. 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 OC San does not object shall not operate as a waiver of OC San’s rights to seek remedies available to it for any subsequent breach.
32. Survival: All provisions of this Agreement that by their nature would reasonably be expected to continue after the termination of this Agreement will survive the termination of this
Agreement, including, without limitation, the following Sections and Paragraphs:
• Payment
• License
• Audit
• Independent Contractor
• Warranties
• Indemnification
• Obligations Upon Expiration or Termination
• Transition of Services
• Confidentiality and Nondisclosure
• Forum for Enforcement 33. 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 OC San rejects the goods or Services or revokes acceptance of the goods or Services, OC San may (1) terminate the Agreement; (2) recover whatever amount of the purchase price OC San has paid, and/or (3) “cover” by purchasing, or contracting to purchase, substitute goods or Services for those due from Consultant. In the event OC San elects to “cover” as described in (3), OC San 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.
34. 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.
35. 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.
36. 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
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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.
37. Dispute Resolution 37.1. 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. 37.2. 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. 38. Damage to OC San's Property Any OC San property damaged by Consultant will be subject to repair or replacement by Consultant at no cost to OC San. 39. Contractor Safety Standards and Human Resources Policies OC San requires Consultant and its subconsultants to follow and ensure their employees follow all Federal, State and local regulations as well as Contractor Safety Standards while working at OC San locations. If during the course of the Agreement it is discovered that Contractor Safety Standards do not comply with Federal, State or local regulations, then the Consultant is required to follow the most stringent regulatory requirement at no additional cost to OC San. Consultant and all of its employees and subconsultants, shall adhere to all applicable
Contractor Safety Standards attached hereto in Exhibit “D” and the Human Resources Policies in Exhibit “E”.
40. 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.
41. Assignments Consultant shall not delegate any duties nor assign any rights under this Agreement without the prior written consent of OC San. Any such attempted delegation or assignment shall be void. 42. Changes In Control of Consultant
42.1. In the event of a change in Control of Consultant, OC San shall have the option of terminating this Agreement by written notice to Consultant. Consultant shall notify OC San within ten (10) days of the occurrence of a change in Control. As used in this Section, “Control” is defined as the possession, direct or indirect, of either:
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42.1.1. the ownership or ability to direct the voting of fifty-one percent (51%) or more of the equity interests, value, or voting power in Consultant; or
42.1.2. the power to direct or cause the direction of the management and policies of Consultant, whether through ownership of voting securities, by contract, or
otherwise. 43. Conflict of Interest and Reporting 43.1. Consultant shall at all times avoid conflicts of interest or appearance of conflicts of interest in performance of this Agreement. 43.2. 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 OC San any question regarding possible conflict of interest which may arise as a result of such change.
44. Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OC San and Consultant.
45. Non-Liability of OC San Officers and Employees No officer or employee of OC San shall be personally liable to Consultant, or any successor-in-interest, in the event of any default or
breach by OC San 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.
46. 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.
47. Read and Understood By signing this Agreement, Consultant represents that it has read and understood the terms and conditions of the Agreement. 48. 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.
Orange County Sanitation District 16 of 16 Specification No. CS-2021-1244BD Revision 031021
49.Notices All notices under this Agreement must be in writing. Written notice shall be deliveredby 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 destinationand 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 bedeemed to be receipt of the notice, demand or request sent. All notices shall be effective whenfirst received at the following addresses:
OC San:Heather Park, Buyer Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018
Consultant:[Contact Name] [Contact Title] [Company Name] [Street Address] [City, State, Zip Code]
Each party shall provide the other party written notice of any change in address as soon as practicable.
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: ___________________________________
John B. Withers Board Chairman
Dated: _________________By: ___________________________________ Kelly A. Lore
Clerk of the Board
Dated: _________________By: ___________________________________ Ruth Zintzun Purchasing and Contracts Manager
[COMPANY]
Dated: _________________By: ___________________________________
______________________________________ Print Name and Title of Officer
EXHIBIT A Specification No. CS-2021-1244BD
Exhibit A SCOPE OF WORK
For Implementation of ServiceNow ITSM Software
EXHIBIT A Page 1 of 11 Specification No. CS-2021-1244BD
EXHIBIT A SCOPE OF WORK IMPLEMENTATION OF SERVICENOW ITSM SOFTWARE SPECIFICATION NO. CS-2021-1244 EXECUTIVE SUMMARY / OVERVIEW
The Orange County Sanitation District (OC San) operates the third largest wastewater agency
west of the Mississippi River. Since 1954, we have safely collected, treated, and disposed of
and/or reclaimed the wastewater generated by 2.6 million people living and working in central and
northwestern Orange County, California.
A professional staff of more than 600 employees manages the day-to-day activities of OC San.
Our facilities include 388 miles of sewer pipes, located throughout the country, and two treatment
plants – one in Fountain Valley, CA and the other in Huntington Beach, CA – where wastewater
is treated in accordance with strict state and federal standards.
1.0 PURPOSE
OC San is seeking a Consultant to implement services of the ServiceNow ITSM solution. The
products and any associated services that may be provided by Consultant are referred to
herein singularity as “Products” and/or “Services” or combined as “Products/Services”.
2.0 PROJECT BACKGROUND
OC San is currently using an outdated on-premises ITSM (BMC Footprints) to support its
information technology (IT) services. This application is used for:
• Incident Management
• Service Management
• Change Management
• Knowledgebase
• Asset Discovery and Management
• Configuration Management Database (CMDB)
OC San is now seeking to implement ServiceNow as the new cloud-based ITSM solution. OC
San will also require an assessment of how its current Information Technology (“IT”)
processes can be supported by ServiceNow’s ITSM solution. The Consultant shall provide
analysis, process migration, consultation, implementation, training, and licensing
requirements recommendations to support the implementation of ServiceNow’s ITSM solution
with state-of-the-art functionality.
3.0 OBJECTIVE
OC San’s IT Division is seeking a qualified Consultant to provide consultation and
implementation services for ServiceNow’s ITSM solution to replace its existing BMC
Footprints software, and to expand the features and functions necessary to support the ITSM
processes listed below in accordance with the Information Technology Infrastructure Library
4 (“ITIL 4”) framework.
EXHIBIT A Page 2 of 11 Specification No. CS-2021-1244BD
Consultant shall provide analysis, migration, consultation, implementation, training, and
licensing requirements recommendations to support the implementation of the ServiceNow
service components listed below. Single Sign On with Microsoft Azure Active Directory (Azure
AD)
• Customizable Landing Pages for Agents
• Customizable Reports
• Customizable Performance Analytics Dashboards
• User Self Service Portal with Landing Page
• Automated Incident and Service Request Assignments
• Incident Management
• Service Management
• Change Management
• Release Management
• Problem Management
• Knowledge Management and Knowledgebase
• Service Catalog
• Customizable workflows with approvals
• Configuration Management Database (CMDB)
• Asset Discovery and Management
• Customer Satisfaction Surveys
• 3rd Party Integration with BeyondTrust and Microsoft Teams
• Native Mobile Application for iOS and Android
4.0 PROJECT MANAGEMENT
4.1 Consultant shall provide project management services for the duration of the project and
is responsible to attend all scheduled project meetings, develop and submit bi-weekly
progress reports, and serve as the single point of contact for project communications.
4.2 Consultant shall maintain a bi-weekly updated project schedule (including: project
milestones, estimated level of effort, and proposed resource requirements) within a format
approved by the OC San Project Manager and include this item in status reports to OC
San Project Manager, or as otherwise directed by OC San.
4.3 Consultant shall provide the following project management services, including but not
limited to the following:
• Identify and provide a senior level associate(s) familiar with the project who will be
available to OC San during the entire duration of the Project to resolve issues such as
project team or implementation issues.
• Prepare and submit the following for approval, in a format acceptable to OC San:
o Project communications plan
o Change management plan
o Project schedule and work breakdown structure for the Project and each Project
element
o Quality assurance / testing plan
EXHIBIT A Page 3 of 11 Specification No. CS-2021-1244BD
4.4 Project Kick off Meeting – Consultant shall conduct a Project kick-off meeting with OC San
staff to introduce principal members of the Consultant’s team within (2) weeks of issuance
of the Notice to Proceed. The discussion topics will be established by OC San’s Project
Manager and may include, but not limited to: OC San’s responsibilities, Consultant’s
responsibilities, project schedule, communication plan, and project methodology for a
successful implementation.
4.5 Progress meetings – Consultant shall meet with OC San as required throughout the life
of the project. Bi-weekly project management meetings with the Consultant will be
required. These meetings will be primarily conducted via conference call or online
meeting.
4.6 Access to OC San’s resources must be planned to ensure OC San’s staff can accomplish
their primary task assignments within the organization. Consultant shall coordinate
resource request with the OC San Project Manager at a minimum two (2) weeks in
advance of the actual need. Resources identified as, including but not limited to: OC San
staff, and OC San computer or network systems.
5.0 PROJECT ELEMENTS The implementation of the new ServiceNow ITSM solution will follow a phased approach with
specific milestones and deliverables. Each milestone must be approved and accepted by OC
San Project Manager prior to the start of subsequent milestones.
5.1 MILESTONE 1- Current System Evaluation & Recommendations
OC San is seeking to implement industry’s best practices in Project Management.
Consultant shall conduct a detailed requirements analysis to clarify and document OC
San’s current ITSM processes and workflows. This includes the following:
• Interviews and meetings to review, discuss and document business requirements,
existing business rules, existing business practices and the business process currently
in effect at OC San.
• Development of business process to interface with other OC San systems including
all error handling scenarios.
• Conduct meetings with applicable OC San staff and management and discuss and
review the results of the interview process.
• Update OC San’s business rules, business practices and workflow as may be
necessary to adequately prepare for the implementation process. Consultant shall
include in this process a detailed workflow analysis and prepare flowcharts and
diagrams, lists, policies, and procedures as applicable and necessary for the Project.
• Work with OC San staff to determine appropriate ServiceNow software licensing
requirements, application roles and permissions. All final business rules, business
processes and workflows documented for planned use in the Project shall be prepared
in written form including applicable flow charts and subject to OC San approval prior
to completed of the project.
At the end of this process, OC San expects the Consultant to fully understand OC
San’s current business process from project initiation through close-out, and the
EXHIBIT A Page 4 of 11 Specification No. CS-2021-1244BD
current integrations between various systems. Consultant shall then provide a
recommendation that will align OC San’s business process with industry’s best
practices in IT Service Management.
Approximate Number of Workflows, Forms, Reports, Dashboards per Business
Process
Business Process Workflows Forms Reports Dashboards
Incident Management 2 2 10 2 Service Request Management 5 5 10 2 Change Management 3 1 2 1
Release Management 2 1 2 1
Problem Management 2 1 2 1
Knowledge Management 2 1 2 1
Asset Discovery and Management 3 2 2 1 Customer Satisfaction Surveys 2 2 3 2 TOTAL: 21 17 33 11
Interfaces / 3rd Party Integrations
Name of Interface / Integration Approximate Number of Interfaces / Integrations per item
On-Premises SQL Database(s) 1
Microsoft Teams 1
Microsoft Azure Active Directory 2 Beyond Trust Remote Support 1
Milestone 1 Deliverables
• As-is workflow diagrams and flowcharts
• As-is business practices and process
• To-be workflow diagrams and flowcharts
• To-be business practices and process
• Role and permission assignments
• ServiceNow licensing requirements recommendation
5.2 MILESTONE 2 - Single Sign On / 3rd Party Integrations
The software shall provide the ability to integrate with OC San’s Single Sign On solution
(Azure Active Directory (“AD”) Single Sign On) and integrate with OC San’s user directory
(Azure AD) as well as other 3rd party products utilized by OC San. Single Sign On /
Integration capabilities include, but are not limited to:
• Automatic account provisioning
• Integration with Azure AD
• Integration with on-premises SQL servers
• Microsoft Teams integration for virtual agent
• BeyondTrust Remote integration within ServiceNow ITSM
EXHIBIT A Page 5 of 11 Specification No. CS-2021-1244BD
Milestone 2 Deliverables
• Automatic account provisioning for all OC San users
• Automatic account provisioning for all OC San agents
• Integration with Microsoft Teams via virtual agent
• Integration with BeyondTrust Remote Support to initiate support sessions
• Chain of command for workflows that require supervisor approvals
5.3 MILESTONE 3 - Incident Management
The software shall provide incident management capabilities that enable multi-channel
incident capture via email, self-service portal, virtual bot, and Service Desk agent. Incident management capabilities include, but are not limited to:
• Multi-channel incident capture
• Agent landing (home) page / workspace
• Automated incident assignments
• Bidirectional notifications
• Automated incident priority
• Customizable incident form
• Incident self-service via portal and Microsoft Teams virtual agent with suggested
knowledge articles
• Major incident management
o Major incident dashboard
• Service level agreements
• Graphical workflow designer
• Quick messages (canned responses)
Milestone 3 Deliverables
• Customized incident management form
• Incident management landing page for agents
• Fully configured incident management workflows
o Global Incident escalation
• Customized canned responses
• Incident self-service via portal and Microsoft Teams virtual agent for users with
knowledge articles
5.4 MILESTONE 4 - Problem Management
The software shall provide problem management capabilities that enable a systematic
approach to managing the life cycle of all problems. Problem management capabilities
include, but are not limited to:
• Workflow integration with incident and change management process
• Customizable problem management forms
• Bidirectional notifications
• Problem management landing (home) page / workspace for agents
• Graphical workflow designer
• Change advisory board approvals
EXHIBIT A Page 6 of 11 Specification No. CS-2021-1244BD
Milestone 4 Deliverables
• Customized problem management forms
• Fully configured problem management workflows
o Integration with incident management workflows
o Integration with change management workflows
• Problem management landing page for agents
5.5 MILESTONE 5 - Service Request Management
The software shall provide service management capabilities that enable multi-channel
capture via email, self-service portal, virtual bot, and Service Desk agent. Service
management capabilities include, but are not limited to:
• Multi-channel service request capture
• Agent landing (home) page / workspace
• Automated service request assignments
• Bidirectional notifications
• Customizable service request forms
• Automated service request priority
• Service level agreements
• Quick messages (canned responses)
• Service request self-service portal and Microsoft Teams virtual agent
• Service catalog
• Graphical workflow designer
• Supervisor approvals for service requests
Milestone 5 Deliverables
• Customized service request forms
• Service request landing page for agents
• Fully configured service request workflows
• Customized canned responses
• Service request self-service portal for users via service catalog and Microsoft Teams
virtual agent
• Supervisor approvals for service requests
5.6 MILESTONE 6 - Customer Satisfaction Surveys
The software shall provide the ability to collect customer satisfaction responses via
surveys from within the platform. Surveys and assessment capabilities include, but are not
limited to:
• Graphical workflow designer
• Bidirectional notifications
• Customizable customer satisfaction surveys
• Multi-channel capture via email and Microsoft Teams virtual agent
EXHIBIT A Page 7 of 11 Specification No. CS-2021-1244BD
Milestone 6 Deliverables
• Customized Customer satisfaction survey forms
• Fully configured Customer Satisfaction Survey workflows
5.7 MILESTONE 7 - Change Management
The software shall provide change management capabilities that enable a systematic
approach to control the life cycle of all changes. Change management capabilities
include, but are not limited to:
• Change Advisory Board (CAB) landing (home) page / workspace
• Customizable change request forms
• Bidirectional notifications
• Graphical workflow designer
• Change advisory board approvals
• Change request templates
Milestone 7 Deliverables
• Change management landing page for CAB members
• Customized change request forms
• Fully configured change management workflows
• Change advisory board member approvals / votes
• Customized change request templates for normal, standard, and emergency changes
5.8 MILESTONE 8 - Release Management
The software shall provide release management capabilities that enable a systematic
approach to control the life cycle of all releases. Release management capabilities include,
but are not limited to:
• Change Advisory Board (CAB) landing (home) page / workspace
• Customizable release forms
• Bidirectional notifications
• Graphical workflow designer
• Change advisory board approvals
Milestone 8 Deliverables
• Release request landing page for CAB members
• Customized release request forms
• Fully configured release request workflows
o Change advisory board member approvals / votes
5.9 MILESTONE 9 - Knowledge Management and Knowledgebase
The software shall provide knowledge management capabilities with a public and private
knowledgebase that fully integrates with all other service components. Knowledge
management and knowledgebase capabilities include, but are not limited to:
• Public and private knowledgebase
• Customizable knowledge forms
EXHIBIT A Page 8 of 11 Specification No. CS-2021-1244BD
• Integration with all other ITSM service components
• Knowledge management (home) page / workspace for agents
• Graphical workflow designer
• Knowledge article approval workflow for knowledge managers
Milestone 9 Deliverables
• Customized knowledge forms
• Fully configured knowledge management workflows
• Knowledge manager approval
• Ability to mark knowledge articles public or private
• Integration with Microsoft Teams virtual agent
5.10 MILESTONE 10 - User Self-Service Portal and Service Catalog
The software shall provide a user self-service portal and service catalog accessible to all
OC San staff that fully integrates with all other service components. User self-service
portal and service catalog capabilities include, but are not limited to:
• Customizable user self-service portal
• Customizable service catalog
• Self-service incident creation via portal
• Self-service service requests via portal
• Self-service assistance via knowledgebase and virtual agent
Milestone 10 Deliverables:
• Customized user self-service portal with landing (home) page
• Customized service catalog
• Self-service incident creation via portal
• Self-service service requests via portal
• Self-service assistance via knowledgebase and virtual agent
5.11 MILESTONE 11 - Asset Discovery and Management
The software shall provide asset management capabilities that enable the tracking of all
hardware, software, and contracts. As well as the ability to scan and discover assets on
the local network. Asset discovery and management capabilities include, but are not
limited to:
• Asset inventory management
• Asset landing (home) page / workspace for agents
• Customizable asset forms
• Graphical workflow designer
• Asset scanning and discovery
Milestone 11 Deliverables
• Customized asset forms
• Asset landing page for agents
• Fully configured asset workflows
• Integration with service catalog
EXHIBIT A Page 9 of 11 Specification No. CS-2021-1244BD
• Asset scanner / discovery tool
5.12 MILESTONE 12 - Configuration Management Database (CMDB)
The software shall provide a Configuration Management Database that enables the
tracking of all IT assets as well as their relationships. Configuration Management
Database capabilities include, but are not limited to:
• Integration with asset management and asset discovery
• Graphical configuration item relationship viewer
• Graphical workflow designer
Milestone 12 Deliverables
• Integration with asset management and asset discovery
• Fully configured Configuration Management Database workflows
5.13 MILESTONE 13 - Reports, Metrics, and Performance Analytics Dashboards The software shall provide advanced reporting capabilities, tracking of key performance indicators (KPIs), and performance analytics dashboards. Reports, Metrics, and
Performance Analytics Dashboards capabilities include, but are not limited to:
• Customizable reports for all reportable service components
• Customizable KPIs for Incident and Service Request Management service components
• Customizable Performance Analytics Dashboards for all reportable service components
Milestone 13 Deliverables
• Fully configured reports for the following business processes: Incident Management, Service Request Management, Change Management, Release Management, Problem Management, Knowledge Management, Asset Discovery and Management, Customer Satisfaction Surveys
• Performance Analytics Dashboards that track the KPIs for Incidents, Service Requests, and Customer Satisfaction
• Analytics Dashboards for Change Management, Release Management, Knowledge Management, Asset Management, CMDB
5.14 MILESTONE 14 - Mobile Application for iOS and Android The software shall provide a native mobile application for iOS and Android mobile devices. Mobile application capabilities include, but are not limited to:
• Native mobile application for iOS and Android
• Workflow approvals via mobile application
• Ability to view incidents, service requests, service catalog, and knowledgebase
• Ability to chat with virtual agent to create incidents and service requests
Milestone 14 Deliverables
• Fully functioning native mobile application for iOS and Android
• Workflow approvals via mobile application
• Ability to view incidents, service requests, service catalog, and knowledgebase
EXHIBIT A Page 10 of 11 Specification No. CS-2021-1244BD
• Ability to chat with virtual agent to create incidents and service requests
5.15 MILESTONE 15 - Training
Comprehensive training on configuration of service components provided to OC San staff
personnel based on role or responsibility.
Milestone 15 Deliverables
• Training on configuration of all service components implemented
• Provide training manuals for each student
5.16 MILESTONE 16 - Testing, Go-Live, and Support
Consultant shall develop a comprehensive formal testing process approved by OC San.
Consultant Shall develop a test plan for each service component/module or system function establishing roles/responsibilities of team members for each test plan.
• Consultant shall develop and load test data into a test System and facilitate the
completion of each test plan.
• Testing shall be coordinated with efforts between OC San Project Manager, OC San
Technical Lead, and OC San Core Team members.
• All testing procedure shall be developed and documented by Consultant and
submitted to OC San for review and approval no less than two weeks before testing
begins. Testing scenarios shall reflect real-world processes and situations
encountered by OC San staff.
• Prior to moving the System into a production environment, Consultant shall remedy all
known Defects and install and test the most current, commercially available modules
and remedy all problems and deficiencies that may surface during that process.
• Tests will not be considered complete until the OC San Project Manager and assigned
IT personnel are satisfied and have determined that the software performed properly
and is compliant with OC San standards in accordance with Professional Services
Agreement.
• System Acceptance. All training will be completed prior to go live, unless otherwise
approved by OC San.
• Upon successful completion of testing and written certification by Consultant that the
System is complete in all respects, and all known defects have been remedied by
Consultant, the System will be prepared for live operations.
• Consultant shall provide dedicated remote support after completion of go-live for not
less than twelve (12) workdays. If module/solution is deemed not functioning, then the
response time will be 4 hours or else the next business day. If defects surface during
that period, OC San reserves the right to require Consultant to remain on the Project
until the System is stable and material Defects have been remedied at no cost to OC
San.
Milestone 16 Deliverables
• Test plan for each module/solution/software
• User acceptance test for each module/solution/software
• System test for each module/solution/software
• Go-live
EXHIBIT A Page 11 of 11 Specification No. CS-2021-1244BD
• Go-live support for not less than twelve (12) workdays
5.17 MILESTONE 17 - Project Documentation
All Project-related Documentation shall be updated and provided to OC San. Project
Documentation shall include, but not limited to: software configuration, security setup and
administration, training manuals, collected data, installation procedures, and testing
procedures.
• All Documentation shall be delivered in the form of electronic files. All project
Documentation deliverables shall be in their original format. The final Documentation
deliverable shall consist of a complete set of electronic user manuals and electronic
System Administration Documentation exclusive of user/System manuals procured by
OC San.
Milestone 17 Deliverables
• System/Application configuration and ER diagram
• System/Application security setup
• System/Application workflow documentation
• System/Application test plan and test plan results
• Finalized version of workflow diagrams and flowcharts
• Finalized version of standard operation procedures
• Finalized version of training manuals
• All other Documentation generated by other project tasks (e.g., status reports, logs,
and training materials)
6.0 ASSUMPTIONS
OC San currently has the following number of users with the following roles:
Role Count Service Desk Agents (total) 57 Tier 1 Service Desk Agents (always logged on during workday) 2 Tier 2 Service Desk Agents (logged on sporadically throughout workday) 4
IT Supervisors and Managers 4
Change Advisory Board Members (all CAB members are either a Service Desk Agent or an IT Supervisor/Manager) 20
Staff (service requestors) 700
Approvers (staff service request approvers) 90
7.0 SCHEDULE The expected time to completion from Notice to Proceed (NTP) is 270 calendar days. Consultant shall work with OC San to develop a detailed schedule with corresponding payment milestones and acceptance criteria. 8.0 STAFF ASSISTANCE
Upon award, an OC San Project Manager will be assigned to work with the Consultant on this project. The Consultant will be encouraged to contact the Project Manager as frequently as necessary to complete the work. The Consultant may contact other OC San staff directly or through the assigned Project Manager, as necessary, to receive information or assistance from staff.
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1908 Agenda Date:11/10/2021 Agenda Item No:10.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
ORANGE COUNTY SANITATION DISTRICT ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR END JUNE 30, 2021
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
Receive and file the Orange County Sanitation District’s Annual Comprehensive Financial Report
(ACFR) for the year ended June 30, 2021, prepared by staff and audited by Macias Gini & O’Connell
LLP (MGO), Certified Public Accountants, along with the following reports prepared by MGO:
1. Report to the Board of Directors; and
2. Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit
Worksheets.
BACKGROUND
The ACFR for the year ended June 30, 2021 is attached for the Administration Committee’s
consideration. Included within the report are the Orange County Sanitation District’s financial
statements for the year ended June 30, 2021, along with the Independent Auditor’s Report that
includes the unmodified opinion.
RELEVANT STANDARDS
·Produce appropriate financial reporting - annual financial report & audit letter
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
·Report to the Board of Directors
·Independent Accountant's Report on Applying Agreed-Upon Procedures Related to
Appropriations Limit Calculation
·Annual Comprehensive Financial Report for the Year Ended June 30, 2021
·Presentations
Orange County Sanitation District Printed on 11/3/2021Page 1 of 1
powered by Legistar™
OC6SAN
ORANGE COUNTY SANITATION DISTRICT
www.mgocpa.com
Macias Gini & O’Connell LLP 111 Pacifica, Suite 300 Irvine, CA 92618
1
October 25, 2021
To the Board of Directors Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California
We have audited the financial statements of the Orange County Sanitation District (OC San) as of and for the year ended June 30, 2021, and have issued our report thereon dated October 25, 2021. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our auditor and management responsibility letter dated May 20, 2021, our
responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of
America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial
reporting. Accordingly, as part of our audit, we considered the internal control of OC San solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you in our auditor and management responsibility letter dated May 20, 2021, and our planning communication letter also dated June 29, 2021.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm, have complied with all relevant ethical requirements regarding independence.
Certified
Public
Accountants
2
Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of
significant accounting policies adopted by OC San is included in Note 1 to the financial statements. OC San early implemented Governmental Accounting Standard Board (GASB) Statement No. 98, The Annual
Comprehensive Financial Report for the year ended June 30, 2021, as described in Note 1. There is no significant impact to OC San’s financial statements due to the implementation of this Statement other than to change the name and acronym of the document. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are
particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are:
Valuations of actuarially determined contributions, deferred outflows of resources, deferred inflows of resources, and net pension liability/asset for OC San’s employee pension plan and additional retiree benefit account plan are based on actuarial calculations, which incorporate actuarial methods
and assumptions adopted by the Board of Directors.
Valuations of actuarially determined contributions, deferred outflows of resources, deferred inflows of resources, and net OPEB liability for OC San’s employee OPEB plan are based on actuarial calculations, which incorporate actuarial methods and assumptions adopted by the Board
of Directors.
Management’s estimates of workers’ compensation and general liability are based on reports prepared by third party actuarial valuations. We evaluated the key factors and assumptions used to develop the estimate liability in determining that they are reasonable in relation to the financial
statements taken as a whole.
Management’s estimate of the allowance for uncollectible accounts is based on evaluating individual customer accounts receivable at least one year past due and considering the customer’s financial condition, credit history and current economic conditions. We evaluated the key factors and assumptions used to assess the collectability of the receivables in determining that they are reasonable in relation to the financial statements taken as a whole.
Management’s estimate of depreciation is based on the useful-lives of the related capital assets. We evaluated the key factors and assumptions used to develop the useful-lives of the related capital assets in determining that they are reasonable in relation to the financial statements taken as a whole.
3
Fair values of investments are based on quoted market prices or significant other observable inputsfrom independent published sources. We evaluated the key factors and assumptions used to developthe fair value of investments in determining that it is reasonable in relation to the financialstatements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting OC San’s financial statements relate to:
The disclosure of net pension liability and OPEB benefits in Notes 5 and 6 to the basic financial
statements, respectively, are based on actuarial valuations.
Transactions with Irvine Ranch Water District – Revenue Area No. 14 as disclosed in Note 7 to thebasic financial statements.
Commitments and contingencies that will impact future resources of OC San as disclosed in Note8 to the basic financial statements.
Impact of COVID-19 pandemic to OC San as disclosed in Note 9 to the basic financial statements.
Difficulties Encountered during the Audit
We encountered no difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. There were no
misstatements detected as a result of audit procedures and corrected by management which were material, either individually or in the aggregate, to the financial statements taken as a whole. In addition, there were no uncorrected misstatements noted as a result of the audit procedures.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to OC San’s basic financial statements or the auditor’s report. No such
disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are dated October 25, 2021.
4
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues In the normal course of our professional association with OC San, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as OC San’s auditors.
Other Information in Documents Containing Audited Financial Statements
Pursuant to professional standards, our responsibility as auditors for other information in documents (i.e.,
bond official statements) containing OC San’s audited basic financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, if engaged by OC San, in accordance with such
professional standards we would read the information and consider whether such information, or the manner of its presentation, was materially inconsistent with its presentation of the basic financial statements.
Other Matters We applied certain limited procedures to the management’s discussion and analysis, and the pension and
OPEB schedules which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries,
the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the “Combining Area” financial statements, which accompany the basic financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is
appropriate and complete in relation to our audit of the basic financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the basic financial statements or to the basic financial statements themselves.
Our responsibility also includes communicating to you any information, which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its
manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
This report is intended solely for the information and use of the Board of Directors and management of OC San and is not intended to be, and should not be, used by anyone other than these specified parties.
Irvine, California
ORANGE COUNTY SANITATION DISTRICT
Independent Accountant’s Report on Applying Agreed-Upon Procedures Related to Appropriations Limit Calculation
Year Ended June 30, 2021
Certified
Public
Accountants
www.mgocpa.com
Macias Gini & O’Connell LLP 111 Pacifica, Suite 300 Irvine, CA 92618
1
Independent Accountant’s Report on
Applying Agreed-Upon Procedures
To the Board of Directors Orange County Sanitation District Fountain Valley, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet of the Orange County Sanitation District (OC San) for the year ended June 30, 2021. OC San’s
management is responsible for the Appropriations Limit Worksheet. OC San has agreed to and acknowledged that the procedures performed are appropriate to meet the intended
purpose of assisting OC San in evaluating the appropriations limit calculation in accordance with the requirements of Section 1.5 of Article XIIIB of the California Constitution. The procedures are recommended by the California Committee on Municipal Accounting (as presented in the CCMA White Paper titled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-
B of the California Constitution). This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures performed and our findings are as follows:
1. We obtained the completed worksheets setting forth the calculations necessary to establish OC San’s appropriations limit and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of OC San’s
Board of Directors. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of OC San’s Board of Directors.
Finding: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Calculation, we added Line A, last year’s limit, to Line E, total adjustments, and compared the resulting amount to Line F, current year’s limit.
Finding: No exceptions were noted as a result of our procedures.
3. We compared the current year information presented in the accompanying Appropriations Limit Calculation to the appropriate supporting calculations described in item 1 above.
Finding: No exceptions were noted as a result of our procedures. 4. We compared the prior year Appropriations Limit presented in the accompanying Appropriations
Limit Calculation to the prior year Appropriations Limit adopted by the Board of Directors for the prior year.
Finding: No exceptions were noted as a result of our procedures.
Certified
Public
Accountants
2
We were engaged by OC San to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified
Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the appropriations limit calculation for the year ended June 30, 2021. Accordingly, we do not express such an opinion or conclusion.
Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by Article XIIIB of the California Constitution.
We are required to be independent of OC San and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the Board of Directors and management of OC San, and is not intended to be, and should not be, used by anyone other than these specified parties.
Irvine, California
October 25, 2021
ORANGE COUNTY SANITATION DISTRICT Appropriations Limit Calculation
Year Ended June 30, 2021
3
Amount Source
A. Last year’s limit 114,427,648 $
B. Adjustment factors:
1. Population change 1.00000000 State Finance
2. Per capita change 1.03730000 State Finance
Total adjustments [(B.1 x B.2)-1.0]0.03730000
C. Annual adjustment 4,268,151 (BxA)
D. Other adjustments:
1. Lost responsibility (-) -
2. Transfer to private (-) -
3. Transfer to fees (-) -
4. Assumed responsibility (+) -
Subtotal -
E. Total adjustments 4,268,151 (C+D)
F. This year’s limit 118,695,799 $ (A+E)
Orange County Sanitation DistrictAnnual Comprehensive Financial Report
for the year ended June 30, 2021
Orange County, California ~SAN
ORANGE COUNTY SANITATION DISTRICT
ORANGE COUNTY, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
Prepared By:
Administrative Services Department
Financial Management Division
Wally Ritchie
Controller
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ORANGE COUNTY SANITATION DISTRICT
Annual Comprehensive Financial Report
Table of Contents
For the Year Ended June 30, 2021
Page
INTRODUCTORY SECTION (Unaudited):
Letter of Transmittal ..................................................................................................................... i-viii
GFOA Certificate of Achievement ............................................................................................... ix
Board of Directors ........................................................................................................................ x
Organizational Chart .................................................................................................................... xi
Map of Service Area .................................................................................................................... xii
FINANCIAL SECTION:
Independent Auditor’s Report ...................................................................................................... 1-2
Management Discussion and Analysis – Required Supplementary Information (Unaudited) .... 3-9
Basic Financial Statements:
Statement of Net Position ................................................................................................... 12
Statement of Revenues, Expenses, and Change in Net Position ...................................... 13
Statement of Cash Flows .................................................................................................... 14
Notes to Basic Financial Statements .................................................................................. 15-48
Required Supplementary Information (Unaudited):
Proportionate Share of the Net Pension Liability (Asset) – OCERS Pension Plan ............ 50
Schedule of District Contributions – OCERS Pension Plan ............................................... 51
Total Pension Liability – Additional Retiree Benefit Account .............................................. 52
Changes in Total Pension Liability – Additional Retiree Benefit Account ........................... 53
Total OPEB Liability –Post-Employment Medical Benefits Plan ......................................... 54
Changes in Total OPEB Liability –Post-Employment Medical Benefits Plan ..................... 55
Supplementary Information:
Combining Area Schedule of Net Position .......................................................................... 58
Combining Area Schedule of Revenues, Expenses, and Change in Net Position ............ 59
Combining Area Schedule of Cash Flows .......................................................................... 60 STATISTICAL SECTION (Unaudited):
Net Position by Component – Last Ten Fiscal Years .................................................................. 62
Revenues and Gross Capital Contributions by Source – Last Ten Fiscal Years ........................ 63
Expenses by Type – Last Ten Fiscal Years ................................................................................ 64
Change in Net Position – Last Ten Fiscal Years ......................................................................... 65
Cash and Investment Reserve Balances – Last Ten Fiscal Years ............................................. 66
Sewer Service Fees – Last Nine Fiscal Years and Next Fiscal Year .......................................... 67
Number of Accounts and Revenues by Customer Class – Last Ten Fiscal Years ..................... 68
Principal Sewer Service Customers – Current Fiscal Year and Nine Years Ago ....................... 69
Ratio of Annual Debt Service to Total Expenses – Last Ten Fiscal Years ................................. 70
Debt Coverage Ratios – Last Ten Fiscal Years .......................................................................... 71
Ratios of Outstanding Debt – Last Ten Fiscal Years .................................................................. 72
Comparison of the Volume of Wastewater Treated – Last Ten Fiscal Years ............................. 73
Authorized Full-time Equivalents by Function – Last Ten Fiscal Years ...................................... 74
Biosolids Produced – Last Ten Fiscal Years ............................................................................... 75
Capital Asset Statistics – Last Ten Fiscal Years ......................................................................... 76
Demographic Statistics – Last Ten Fiscal Years ......................................................................... 77
Estimated Population Served by Orange County Sanitation District .......................................... 78
Principal Orange County Employers – Current Fiscal Year and Nine Years Ago ....................... 79
Operating Indicators .................................................................................................................... 80 OTHER DATA & TRENDS (Unaudited):
Cash and Investment Portfolio ................................................................................................... 82
Property Tax Rates – Direct and Overlapping Governments – Last Ten Fiscal Years ............... 83
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ................ 84
Property Tax and User Fee Levies and Collections – Last Ten Fiscal Years ............................. 85
Property Value and Construction – Last Ten Fiscal Years ......................................................... 86
Insurance in Force ....................................................................................................................... 87
---
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i
October 25, 2021
The Board of Directors of the
Orange County Sanitation District,
Orange County, California
Subject: Letter of Transmittal
Submitted herewith is the Annual Comprehensive Financial Report of the Orange County
Sanitation District (OC San), Orange County, California for the fiscal year ended June 30, 2021.
This report includes the financial position and activity of individual revenue areas, as described
within the Governmental Structure below, as of June 30, 2021 and was prepared by the
Financial Management Division of OC San’s Administrative Services Department.
Responsibility for both the accuracy of the data, and the completeness and fairness of the
presentation, including all disclosures, rests with OC San. To the best of our knowledge and
belief, the enclosed data is accurate in all material respects and is reported in a manner
designed to present fairly the financial position and changes in the financial position of OC San.
All disclosures necessary to enable the reader to gain an understanding of the agency’s
financial activities have been included.
Included within the accompanying financial statements are all of the organizations, activities,
and functions controlled by OC San’s Board of Directors in accordance with the Governmental
Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial
Reporting. For the purpose of this evaluation, control was determined by the Board’s
responsibility for: (1) adoption of the budget and user charges, (2) taxing authority, and (3)
establishment of policies. The reporting entity and its services are described in further detail in
Note 1 of the financial statements.
An audit of the books, financial records, and transactions of OC San is conducted annually by
independent certified public accountants. OC San selected the accounting firm of Macias Gini
& O’Connell LLP to perform the audit for the year ended June 30, 2021. The auditor’s report
on OC San’s basic financial statements and supplementary information is located on page 1
within the financial section of this report. This report renders an unmodified opinion on OC
San’s basic financial statements for the year ended June 30, 2021.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s
report and provides a narrative introduction, overview, and analysis of the basic financial
statements. The MD&A complements this letter of transmittal and should be read in conjunction
with it.
GOVERNMENTAL STRUCTURE
The Orange County Sanitation District encompasses the Northern section of Orange County.
OC San provides wastewater treatment for an area of the County covering 479 square miles
and serving a population of approximately 2.6 million, or 81 percent of the County’s population.
OC San was originally incorporated in 1954 as seven separate public corporations, or districts,
with two additional districts added in 1985 and 1986. In April of 1998, at OC San’s request, the
Board of Supervisors of the County of Orange passed Resolution No. 98-140 ordering the
consolidation of these nine County Sanitation Districts into a new, single sanitation district, to
be known as the Orange County Sanitation District, effective July 1, 1998. This action was
recommended to the Board by the Local Agency Formation Commission in order to simplify
~SAN
ORANGE COUNTY SANITATION DISTRICT
10844 El lis Avenue
Fountain Valley, CA 92708
714.962.2411
www.ocsan.gov
Our Mission: To protect public health and the environment by
providing effective wastewater collection, treatment, and recycling.
Serving:
Anaheim
Brea
Buena Park
Cypress
Fountain Valley
Fullerton
Garden Grove
Huntington Beach
Irvine
La Habra
La Palma
Los Alamitos
Newport Beach
Orange
Placentia
Santa Ana
Seal Beach
Stanton
Tustin
Villa Park
County of Orange
Costa Mesa
Sanitary District
Midway City
Sanitary District
Irvine Ranch
Water District
Yorba Linda
Water District
ii
governance structures, reduce the size of the Board, ease administrative processes, streamline decision-
making and consolidate accounting and auditing processes. The boundaries of the nine previous districts
had remained intact for the purpose of collecting sewer user fees at the previously established rate
schedules and were referred to as nine individual revenue areas through June 30, 2000. Effective July 1,
2003, all revenue areas, except Revenue Area 14, consolidated user fee rates and all enterprise fund
accounting and budgeting activities and are now known as the Consolidated Revenue Area.
OC San is managed by an administrative organization composed of directors appointed by the agencies or
cities which are serviced by OC San. Each of the two remaining revenue areas, the Consolidated Revenue
Area and Revenue Area 14, has its own budget and is responsible for the construction and maintenance
of its own collection system. All revenue areas, except Revenue Area 14 and the portion of the Consolidated
Revenue Area previously known as Revenue Area 13, receive their own share of the one-percent ad
valorem property tax levy. In addition, all revenue areas, except Revenue Area 14, receive user fees from
property owners. Revenue Area 14 receives all of its revenues from service charges to the Irvine Ranch
Water District.
The purpose of OC San’s wastewater management program is to protect the public’s health, preserve the
beneficial uses of the coastal waters, and maintain air quality. The objectives of operating the treatment
plants are to process and pass on for purification or dispose of the treated wastewater and the separated
solids in accordance with federal, state, and local laws including the Environmental Protection Agency.
OC San sewerage system includes approximately 388 miles of sewers that convey wastewater generated
within OC San’s boundaries to OC San’s two wastewater treatment plants; Reclamation Plant No. 1 located
in the City of Fountain Valley, and Treatment Plant No. 2 located in the City of Huntington Beach.
Plants No. 1 and No. 2 have secondary treatment capacities of 182 million gallons per day (mgd) and 150
mgd, respectively. In fiscal year 2021-22, both plants are projected to receive a combined average daily
wastewater flow of 188 million gallons per day from residential, commercial, and industrial sources.
After wastewater receives secondary treatment at Plant No. 1, it flows to the Groundwater Water
Replenishment System (GWRS) at the Orange County Water District, located adjacent to OC San, where
it undergoes a state-of-the-art purification process consisting of microfiltration, reverse osmosis, and
ultraviolet light with hydrogen peroxide. The product water is near-distilled quality. Approximately 35 million
gallons (132,500 cubic meters) per day of the GWRS water are pumped into injection wells to create a
seawater intrusion barrier. Another 65 million gallons (246,000 cubic meters) are pumped daily to Orange
County Water District's percolation basins in Anaheim where the GWRS water naturally filters through sand
and gravel to the deep aquifers of the groundwater basin.
Remaining outflows of treated wastewater from Plants No. 1 and No. 2 are combined and discharged to
the ocean off the Huntington Beach coast through an outfall pipe that is 120 inches in diameter and
approximately five miles long. The last mile of the outfall pipe is a diffuser that dilutes the wastewater with
seawater in a ratio of 148 parts seawater to one part treated wastewater at an average depth of 185 feet.
ECONOMIC CONDITIONS AND OUTLOOK
Before the COVID-19 pandemic and shutdown beginning in March 2020, California’s economy was growing
at a relatively low, but steady rate. The stay-at-home orders effectively shut down large portions of the state
and Orange County economies. California suffered higher job losses than the nation because of its
relatively greater stringency than other states in the attempt to reduce COVID-19 infections and deaths.
In June 2021, Chapman University forecasted Orange County’s 2021 total payroll employment to increase
2.8 percent over the prior year, or the addition of 42,000 payroll jobs in 2021, following a decrease of 8.9
percent in 2020. Payroll employment in Orange County experienced a steep decline and rapid recovery
from the COVID-19 Recession as compared to previous recessions. According to the California
~SAN
ORANGE COUNTY SANITATION DJS'iRICT
iii
Employment Development Department (EDD), Orange County saw an increase of approximately 8.1
percent in payroll jobs from August 2020 to August 2021. During this same time period, unemployment in
Orange County decreased to 6.0 percent from 10.7 percent while the unemployment in California as a
whole decreased to 7.5 percent from 12.3 percent.
According to Chapman University, a major engine of economic growth in Orange County is the rapid
recovery that took place in construction. This recovery has been fueled by historically low mortgage rates
and a tight supply of unsold housing. That tight supply is reflected in the average number of days to sell a
home, which has dropped to a historic low of 22 days. The rapid growth in construction is being fueled by
a forecasted increase of 73.1 percent in residential permits this year. Residential permit valuation in the
County is forecasted to increase from a 34.2 percent decline in 2020 to 27.7 percent growth in 2021.
Residential housing appreciation of 15.5 percent is projected for 2021.
MAJOR INITIATIVES
Following are the Orange County Sanitation District’s current major initiatives as outlined in the General
Manager’s work plan for FY 2021-22:
1. Business Principles
Paperless Office - Incorporate the trusted system and implement a fully digital process to reduce
the use of paper by June 30, 2022.
Cyber Security Policy - Complete the Cyber Security Incident Response Program playbooks and
incorporate the playbooks into the OC San Integrated Emergency Response Plan by June 30,
2022.
Warehouse Modernization - Implement remote warehousing at Plant No. 2 to allow for the
demolition of the current warehouse facility for construction of new digesters. Present an
implementation plan and budget for review and approval in June 2022.
Property Management (Continued from FY 2020/21) - Complete action plans for OC San’s real
property, easement, and rights-of-way for encroachments and encumbrances which limit access
or impede proper use of OC San’s rights by December 31, 2021, that will restore long-term use
for identified encroachments or encumbrances.
Permit and Reporting Management System (Continued from FY 2020/21) - Implement the
business process mapping for source control permit management, compliance data management,
and Environmental Protection Agency compliance reporting system by June 30, 2022.
Organizational Advocacy and Outreach - Develop a new Organizational Advocacy & Outreach
policy consistent with the Strategic Plan as adopted by the Board of Directors by November 30,
2021.
2. Environmental Stewardship
Energy Independence (Continued from FY 2020/21) - Overhaul one Central Generation Engine
and complete a study to verify the feasibility of a 20-year asset extension for the Central
Generation Facilities by June 30, 2022.
Climate and Catastrophic Event Resilience Policy - Complete the preliminary design for
perimeter wall along the southwest portion of Plant No. 2 as part of the TPAD Digester Facility at
Plant No. 2, Project No. P2-128 by June 30, 2022.
Food Waste Treatment Policy - Establish a feedstock agreement and initiate the bid process
within three months of agreement finalization to accept up to 150 tons per day of food waste slurry
for co-digestion. Provide an information update to the Board of Directors by December 31, 2021.
Interagency Regional Wastewater Capacity and Water Quality Solutions - Develop the scope
~SAN
ORANGE COUNTY SANITATION DJS'iRICT
iv
and objectives for interagency study among OC San, Orange County Water District and Orange
County Watersheds on feasibility of accepting additional dry weather urban runoff and potential
stormwater harvesting and present to the Board of Directors by December 31, 2021.
Wastewater Surveillance - Collaborate with CDC/CDPH to continue developing a Wastewater
Surveillance program for COVID-19 and beyond. Provide an information update to the Board of
Directors by June 30, 2022.
3. Wastewater Management
Chemical Sustainability Policy - Create a plan to optimize chemical usage in the treatment
plants and create a plan to guide operations in the event of a sudden loss of chemical supply.
Complete plans by June 30, 2022.
Biosolids Management Policy - Super critical oxygenation - Work with 374 Water to initiate a
research project to scale up a super critical water oxidation system to six tons per day production
levels. Investigate the treatment of raw sludge, biosolids, food waste, and other organic waste
stream. If practical, seek Board approval for a research project by October 31, 2021. If approved,
start processing waste streams by June 30, 2022.
Constituents of Emerging Concern (CEC) Policy - Formalize a CEC Management Framework
that emphasizes controlling polyfluoroalkyl substances (PFAS) and other CECs at the source.
Continue to work with industry partners to explore technologies that measure, reduce, sequester,
or destroy PFAS. Provide a report with recommendations to the Board of Directors by June 30,
2022.
Interagency Emergency Preparedness and Contingency Coordination - Review contracting
agencies’ (e.g., SAWPA, IRWD) emergency preparedness and contingency plans to ensure
compatibility with OC San’s operational and regulatory constraints. Provide an information update
to the Board of Directors by June 30, 2022.
Supplemental Engineering Services Contracts - Procure new agreements for Supplemental
Engineering Services to replace the existing Supplemental Engineering Services and Staff
Support Services. Advertise the Request for Proposals by October 31, 2021.
4. Workplace Environment
Safety and Physical Security - Conduct security assessment for Plant No. 2 to determine layout
and design of entry/exit points via siting study (e.g., cameras, traffic flow, reject lane, security
zones) and install access cards readers in all occupied buildings by June 30, 2022.
Voluntary Protection Program (VPP) - Continue to assess and maintain all programs and
training relative to VPP. Implement a Wildfire Smoke Exposure Management Program by
December 31, 2021 and conduct an annual third-party review of the safety program by June 30,
2022.
Emergency Response - Conduct an annual exercise on tsunami response by June 30, 2022.
OC San University (OC San U) - Expand OC San U learning offerings to outside agencies by
June 30, 2022 and continue to offer one employee training session per month that pertain to
organizational awareness, leadership, communications, technology, or partnerships for the future.
Centralized Training Program - Evaluate and determine agency needs for a centralized training
program with defined budget and goals with management housed under one division by
December 31, 2021, in time for budget consideration for Fiscal Year 2021/2022.
Labor Negotiations - Facilitate Board and Board Chairman in hiring Chief Negotiator prior to
December 31, 2021 and engage in contract negotiations with all unions prior to the expiration of
current contracts on June 30, 2022.
Classification & Compensation Study - Conduct an agencywide Classification and
Compensation study complete analysis and Board presentations by March 31, 2022.
~SAN
ORANGE COUNTY SANITATION DJS'iRICT
v
Strategic Planning
In November 2019, the Board of Directors adopted a new comprehensive strategic plan to steer OC San’s
efforts. The Strategic Plan developed by the Board of Directors and staff defines the strategic initiatives to
be pursued by OC San and provides a basis for long-term financial, capital, and operational planning. In
addition, it provides for long-term continuity of vision as Board and staff members change over the many
years it takes to deliver public works infrastructure. The Strategic Plan is updated every two years to align
policy and execution expectations with OC San’s two-year budget cycle.
Driven by our Mission, Vision and Core Values, this Strategic Plan continues OC San’s aggressive efforts
to protect the public health of the more than 2.6 million people we serve while protecting the environment
where we live.
The Strategic Plan is broken down into four broad categories with fourteen topic areas that define our
responsibilities and the services we provide. These areas are:
Business Principles
Budget Control and Fiscal Discipline
Asset Management
Cybersecurity
Property Management
Environmental Stewardship
Energy Independence
Climate and Catastrophic Event Resiliency
Food Waste Treatment
Water Reuse
Environmental Water Quality, Stormwater Management and Urban Runoff
Wastewater Management
Chemical Sustainability
Biosolids Management
Constituents of Emerging Concern
Workplace Environment
Resilient Staffing
Safety and Physical Security
The Strategic Plan is not a radical departure from the current direction, but rather the well-defined iterative
update to the direction of OC San. With the adoption of the Strategic Plan, staff will be updating the Asset
Management Plan, Capital Improvement Plan, and Financial Plan that are the basis of a two-year budget
that will be adopted by the Board of Directors. The Budget goals and the General Manager’s work plan are
the accountability steps that measure achievable progress toward the strategic initiatives listed in the
Strategic Plan.
~SAN
ORANGE COUNTY SANITATION DJS'iRICT
vi
SERVICE EFFORTS AND ACCOMPLISHMENTS
The following service efforts and accomplishments were achieved by OC San during the year ended June
30, 2021:
Gold Recognition, Excellence in Management - 2020 National Association of Clean Water
Agencies
Excellence Award - 2020 Municipal Information Systems Association of California
Certificate of Achievement for Excellence in Financial Reporting - 2020 Government Finance
Officers Association (GFOA)
Excellence in Procurement - 2020 California Association of Public Procurement Officers
Distinguished Budget Presentation Award - 2021 Government Finance Officers Association
Collections System of the Year, 2nd Place - 2021 California Water Environmental Association
Platinum Peak Performance Award - 2021 National Association of Clean Water Agencies
Gold Recognition, Excellence in Management - 2021 National Association of Clean Water
Agencies
Award of Excellence, Asset Management - 2021 California Association of Sanitation Agencies
National Safety Council - 2021
Occupational Excellence (Plant No. 1)
Milestone Award (Plant No. 2)
Santa Ana River Basin - 2021
Operator of the Year - Gold - Michael Huls
Collection System Person of the Year - Steve Grande
Collection System of the Year - 200 - 500 miles
Gimmicks and Gadgets - Alkaline Enhanced Iron Odor Control
ACCOUNTING AND BUDGETARY CONTROLS
OC San’s accounting records are maintained on the accrual basis. In developing and evaluating OC San’s
accounting system, consideration is given to the adequacy of internal accounting controls. Internal
accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the
safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial
records for preparing financial statements and maintaining accountability for assets. The concept of
reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be
derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management.
We believe that OC San’s internal accounting controls adequately safeguard assets and provide reasonable
assurance of proper recording of financial transactions.
Each year OC San’s Board of Directors adopts an annual operating plan. A joint works budget is first
prepared that identifies the specific capital projects and operating activities to be undertaken by OC San
during the year. The budgetary level of control, the level at which expenses cannot exceed budget, is
exercised at the individual district, or fund level. OC San has adopted a Uniform Purchasing Policy that
identifies the agreed upon purchasing standards.
~SAN
ORANGE COUNTY SANITATION DJS'iRICT
vii
ACCUMULATED FUNDS AND RESERVES POLICY
The Board of Directors of the Orange County Sanitation District has established the following Accumulated
Funds and Reserves Policy:
Cash Flow Reserve: A cash flow criterion has been established at a level to fund operations, maintenance,
and certificates of participation expenses for the first half of the fiscal year, prior to the receipt of the first
installment of the property tax allocation and the sewer service user fees which are collected as a separate
line item on the property tax bill. The level of this criterion will be established as the sum of an amount equal
to six months operations and maintenance expenses and the total of the annual debt certificate of
participation (COP) service payments due in August each year.
Operating Contingency Reserve: An operating contingency criterion has been established to provide for
non-recurring operating expenditures that were not anticipated when the annual budget was considered
and adopted. The level of this criterion will be established at an amount equal to ten percent of the current
fiscal year’s annual operating budget.
Capital Improvement Reserve: A capital improvement criterion has been maintained to fund annual
increments of the capital improvement program (CIP). The target level of this criterion has been
established at one half of the average annual cash outlay of the capital improvement program through the
year 2030. Levels higher and lower than the target can be expected while the long-term financing and
capital improvement programs are being finalized.
Catastrophic Loss or Self-Insurance Reserves: A catastrophic loss or self-insurance criterion has been
maintained for property damage including fire, flood, and earthquake, for general liability and for workers'
compensation. This reserve criterion is intended to work with purchased insurance policies, FEMA, and
state disaster reimbursements. Based on the plant infrastructure replacement value, the level of this
criterion has been set to fund OC San’s non-reimbursed costs, estimated to be $100 million.
Capital Replacement/Renewal Reserve Policy: A capital replacement/renewal criterion policy has been
established to provide funding to replace or refurbish the current collection, treatment, and recycling
facilities at the end of their useful economic lives. The current replacement value of these facilities is
estimated to be $10.8 billion. The reserve criterion level had been established at $75 million.
Debt Service Reserves: A debt service criterion policy has been established at ten percent of the
outstanding COP issues. Other debt service reserves are required to be under the control of a trustee by
the provisions of the certificate of participation issues. These funds are not available for the general needs
of OC San and must be maintained at specified levels.
Accumulated Funds exceeding the targets specified by OC San policy will be maintained for Capital
Improvements and Rate Stabilization. These funds will be applied to future years' CIP needs due to the
timing of the actual CIP outlays, in order to maintain rates or to moderate annual fluctuations.
As of June 30, 2021, OC San was in compliance with the Accumulated Funds and Reserves Policy with
designated cash and investments totaling $961 million, and have been earmarked for the following specific
purposes in accordance with OC San’s reserve policy:
Designated Cash and Investments
Cash Flow Contingency $128 million
Self-Insurance 100 million
Capital Improvements 639 million
Debt Service Requirements 94 million
Total Designated Cash and Investments $ 961 million
~SAN
ORANGE COUNTY SANITATION DJS'iRICT
viii
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Orange County Sanitation District
for OC San’s Annual Comprehensive Financial Report for the year ended June 30, 2020. This was the
twenty-sixth consecutive year that OC San has received this award. In order to be awarded a Certificate of
Achievement, a governmental unit must publish an easily readable and efficiently organized Annual
Comprehensive Financial Report, whose contents conform to program standards. Such reports must satisfy
both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual
Comprehensive Financial Report continues to meet the Certificate of Achievement Program requirements
and we are submitting it to GFOA to determine its eligibility for another certificate.
ACKNOWLEDGMENTS
This report could not have been accomplished without the dedicated services of the Financial Management
Division staff, and I would like to especially express my appreciation to Kim Cardenas, Accounting
Supervisor, who assisted in its preparation. I would also like to thank OC San’s Board of Directors and the
General Manager for their interest and support in conducting the financial operations of OC San in a
responsible and progressive manner.
Respectfully submitted,
Wally Ritchie
Controller
SAN
ORANGE COUNTY SANITATION DJS'TRICT
ix
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Orange County Sanitation District
California
For its Comprehensive Annual
Financial Rep011
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
x
ORANGE COUNTY SANITATION DISTRICT
Board of Directors
As of June 30, 2021
Agency _ Active Director _ Alternate Director _
Cities:
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 Silva Nick Dunlap
Garden Grove Steve Jones John O'Neill
Huntington Beach Kim Carr Dan Kalmick
Irvine Anthony Kuo Farrah Khan
La Habra Rose Espinoza Jose Medrano
La Palma Marshall Goodman Nitesh Patel
Los Alamitos Mark Chirco Ron Bates
Newport Beach Brad Avery Joy Brenner
Orange Kim Nichols Chip Monaco
Placentia Chad Wanke Ward Smith
Santa Ana Johnathan 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 Robert 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:
Member of the Board
of Supervisors
Doug Chaffee Donald Wagner
xi
ORANGE COUNTY SANITATION DISTRICT
Organizational Chart
As of June 30, 2021
General Manager
Administraton
Board Services
Public Affairs
Human Resources
Department
Human Resources
I
Risk
ManagemenU
Safety/Security
Administrative
Service Department
Administrative
Services
Consolidated
Services
Financial
Management
Contracts, Purchasing
& Materials
Management
Information
Technology
Environmental
Services
Department
Environmental
Services
Administration
I
Resource Protection
Laboratory,
Monitoring and
Compliance
General Counsel
Office
Engineering
Department
Engineering
Administration
Planning
Project
Management
Design
Construction
Management
Operations and
Maintenance
Department
O&M Administration
Collection Facilities
Ops & Maintenance
Fleet Services
Plant No. 1
Operations
Plant No. 2
Operations
Plant No. 1
Maintenance
Plant No. 2
Maintenance
xii
ORANGE COUNTY SANITATION DISTRICT
Map of Service Area
As of June 30, 2021
LA HABRA
BYENA---....u
RARK
Ocean
-Service area boundary
Sewer pipelines
~ Reclamation Plant No. 1 (P1 )
Treatment Plant No. 2 (P2)
Ill Pump stations
D Unincorporated Orange County (white areas)
BREA
N
A
4 •.:==----Miles
Approximately -Map Not to Scale
DISCLAIMER: Map prepared by the Orange
County Sanitation District. his map is intended
for graphical represetitatlon only, No level of
accuracy is daimed. Portions of this derived
product contain geographical information
COp:,'l'ighted by Rand McNalty
All Rights Reserved.
Revised December 2019
www.mgocpa.com
Macias Gini & O’Connell LLP 111 Pacifica, Suite 300 Irvine, CA 92618
1
Independent Auditor’s Report
To the Board of Directors
Orange County Sanitation District Fountain Valley, California
We have audited the accompanying financial statements of the Orange County Sanitation District (OC San) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise OC San’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to OC San’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of OC San’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Orange County Sanitation District, as of June 30, 2021, and the changes in its financial position and its cash flows for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Certified
Public
Accountants
2
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Proportionate Share of the Net Pension Liability (Asset) – OCERS Pension Plan, Schedule of District Contributions – OCERS Pension Plan, Total Pension Liability – Additional Retiree Benefit Account, Changes in Total Pension Liability – Additional Retiree Benefit Account, Total OPEB Liability – Post-Employment Medical Benefits Plan, and Changes in Total OPEB Liability – Post-Employment Medical Benefits Plan, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise OC San’s basic financial statements. The separate “Combining Area” financial statements,
introductory section, statistical section, and other data and trends are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The “Combining Area” financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the “Combining Area” financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections and other data and trends have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an
opinion or provide any assurance on them.
Irvine, California
October 25, 2021
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2021
3
This section of the financial statements of the Orange County Sanitation District (OC San) is management’s
narrative overview and analysis of the financial activities of OC San for the fiscal year ended June 30, 2021.
The information presented here is to be considered in conjunction with additional information provided
within the letter of transmittal located in the Introductory Section of this report.
Financial Highlights
As of June 30, 2021, OC San’s assets and deferred outflows of resources exceeded its liabilities and
deferred inflows of resources by $2,710.4 million (net position). Of this amount, $970.3 million
represents unrestricted net position, which may be used to meet OC San’s ongoing obligations to
citizens and creditors.
Total net position increased $171.4 million, or 6.7 percent over the prior year.
Net capital assets, consisting of non-depreciable capital assets and depreciable capital assets net of
accumulated depreciation, increased $33.5 million, or 1.3 percent over the prior year.
Net investment in capital assets increased $62.1 million, or 3.7 percent over the prior year.
Unrestricted net position increased $109.3 million, or 12.7 percent over the prior year.
Total outstanding bonded debt decreased by $30.4 million, or 3.2 percent from the prior year, to $909.6
million.
Overview of the Basic Financial Statements
OC San operates as a utility enterprise and presents its financial statements using the economic resources
measurement focus and the full accrual basis of accounting. As an enterprise fund, OC San’s basic financial
statements are comprised of two components: financial statements and notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial statements
themselves.
In accordance with the Governmental Accounting Standards Board (GASB) Codification of Governmental
Accounting and Financial Reporting Standards, OC San’s financial statements include a Statement of Net
Position; Statement of Revenues, Expenses, and Change in Net Position; and a Statement of Cash Flows.
The Statement of Net Position includes OC San’s assets, deferred outflows of resources, liabilities, and
deferred inflows of resources; and provides information about the nature and amounts of investments in
resources (assets) and the obligations to OC San’s creditors (liabilities). It also provides the basis for
computing the rate of return, evaluating the capital structure of OC San, and assessing the liquidity and
financial flexibility of OC San.
The Statement of Revenues, Expenses, and Change in Net Position accounts for the current year’s
revenues and expenses. This Statement measures the success of OC San’s operations over the past year
and can be used to determine OC San’s creditworthiness. It also highlights OC San’s dependency on
property tax revenues in supplementing user fees and other charges for recovering total cost.
The final required financial statement, the Statement of Cash Flows, reports cash receipts, cash payments,
and net changes in cash resulting from operations, investments, and financial activities of the reporting
period.
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2021
4
Net Position
As previously noted, net position increased $171.4 million, or 6.7 percent over the net position for
FY 2019-20, to $2,710.4 million in FY 2020-21.
(Dollars in thousands)
Assets
Current and other assets 1,068,658$ 964,535$ 104,123$ 10.8%
Net capital assets 2,707,737 2,674,201 33,536 1.3%
Total assets 3,776,395 3,638,736 137,659 3.8%
Deferred outflows
of resources 75,770 63,213 12,557 19.9%
Total assets and
deferred outflows
of resources 3,852,165 3,701,949 150,216 4.1%
Liabilities
Current liabilities 128,286 138,390 (10,104) -7.3%
Noncurrent liabilities 957,016 991,389 (34,373) -3.5%
Total liabilities 1,085,302 1,129,779 (44,477) -3.9%
Deferred inflows
of resources 56,481 33,160 23,321 70.3%
Total liabilities
and deferred inflows
of resources 1,141,783 1,162,939 (21,156) -1.8%
Net position
Net investment in
capital assets 1,740,102 1,678,041 62,061 3.7%
Unrestricted 970,280 860,969 109,311 12.7%
Total net position 2,710,382$ 2,539,010$ 171,372$ 6.7%
Increase
(Decrease)
Percentage
Increase
(Decrease)
June 30,
2020
June 30,
2021
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2021
5
Current and other assets increased $104.1 million, or 10.8 percent, due primarily to net cash provided by
operations of $136.1 million, proceeds from property taxes of $110.3 million, increase in OCERS net
pension asset of $19.2 million, receipt of capital facilities capacity charges of $21.2 million, contributions
from other governments of $16.4 million, and interest received of $14.2 million, offset by capital outlays of
$139.7 million, interest paid of $42.7 million, and bonded debt retirements of $30.4 million.
Net capital assets increased $33.5 million, or 1.3 percent, due mostly to the ongoing capital improvement
program construction in progress additions of $148.3 million and capital equipment of $3.5 million, offset
by depreciation of $116.5 million and $1.3 million of prior capital project expenses that were written off as
expense. Included in total capital outlay additions is the Ocean Outfall System Rehabilitation with incurred
project costs of $36.5 million in FY 2020-21 and a total project budget of $166.0 million. This project will
rehabilitate the Ocean Outfall Booster Station at Plant No. 2, construct a new Low Flow Pump Station and
a Plant Water Pump Station, and replace existing electrical switchgear at CenGen.
Collection system projects include the Newhope-Placentia Trunk Replacement. The Newhope-Placentia
Trunk Replacement incurred outlays of $18.6 million in FY 2020-21 with a total project budget of $112.0
million through the projected completion in FY 2021-22. This project will increase the size of approximately
35,000 feet of the trunk line from Yorba Linda Boulevard to Orangewood Avenue. The upsized sewer will
accommodate flows from the newly abandoned Yorba Linda Pump Station and the newly interconnected
Atwood Sub-trunk.
See page 8 for the Schedule of Capital Assets and listing of other major capital additions for FY 2020-21.
Deferred outflows of resources increased $12.6 million, or 19.9 percent from the prior year, primarily due
to a $16.0 million increase in pension deferred outflows attributable to the change in projected and actual
earnings on pension plan investments and changes of actuarial assumptions and other inputs, offset by a
decrease of $3.4 million for the difference between carrying amount of the retired debt and the acquisition
price of COP Series.
Deferred inflows of resources increased $23.3 million, or 70.3 percent over the prior year, primarily as a
result of the change in projected and actual earnings on pension plan investments and differences between
expected and actual experiences.
Net investment in capital assets increased $62.1 million, or 3.7 percent over the prior year, primarily as a
result of the net increase in capital assets of $33.5 million coupled with a $28.6 million decrease in related
debt.
Unrestricted net position increased $109.3 million, or 12.7 percent, due to the overall increase in net position
of $171.4 million, offset by the increase in net investment in capital assets of $62.1 million.
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2021
6
Change in Net Position
The change in net position decreased $7.1 million in FY 2020-21, or 4.0 percent under the prior year’s
increase in net position.
(Dollars in thousands)
Revenues:
Operating revenues
Service charges 335,569$ 339,895$ (4,326)$ -1.3%
Permit and inspection fees 1,131 1,169 (38) -3.3%
Total operating revenues 336,700 341,064 (4,364) -1.3%
Non-operating revenues
Property taxes 110,245 104,492 5,753 5.5%
Investment and interest income 1,694 33,669 (31,975) -95.0%
Contrib. from other governments 20,698 10,535 10,163 96.5%
Other 6,867 2,637 4,230 160.4%
Total non-operating revenues 139,504 151,333 (11,829) -7.8%
Total revenues 476,204 492,397 (16,193) -3.3%
Expenses:
Operating expense other than
depreciation and amortization 168,018 168,333 (315) -0.2%
Depreciation and amortization 116,452 113,888 2,564 2.3%
Non-operating expense 37,909 54,261 (16,352) -30.1%
Total expenses 322,379 336,482 (14,103) -4.2%
Income before capital
contributions 153,825 155,915 (2,090) -1.3%
Capital facilities capacity charges 17,547 22,593 (5,046) -22.3%
Increase in net position 171,372 178,508 (7,136) -4.0%
Beginning net position 2,539,010 2,360,502 178,508 7.6%
Ending net position 2,710,382$ 2,539,010$ 171,372$ 6.7%
June 30,
2021
June 30,
2020
Increase
(Decrease)
Percentage
Increase
(Decrease)
As previously stated, an enterprise fund is used to account for the operations of OC San, which is financed
and operated in a manner similar to private business enterprises. This allows OC San to determine that the
costs (expenses, including depreciation and amortization) of providing wastewater management services
on a continuing basis are financed or recovered primarily through user charges.
Sewer service user fees are evaluated annually based primarily on budget requirements for total operation
and maintenance expenses and capital outlays for providing wastewater management services. Property
tax revenues are dedicated for the payment of debt service.
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2021
7
Operating revenues decreased $4.4 million, or 1.3 percent in FY 2020-21 from the prior year, primarily due
to a decrease in service charges to IRWD of $5.2 million, offset by an increase in sewer user fee revenues
of $0.8 million.
Non-operating revenues decrease of $11.8 million, or 7.8 percent, primarily consists of a $32.0 million or
95.0 percent decrease in investment and interest income as a result of lower yields on balances held in the
investment portfolios, offset by a $10.2 million or 96.5 percent increase in contributions from other
governments reflective of reimbursements from OCWD for Groundwater Replenishment System costs, a
$5.8 million or 5.5 percent increase in property taxes revenue due to the increase in total assessed valuation
of 5.5 percent over the prior year, and a $4.2 million or 160.4 percent increase in other revenues attributable
to a reduction in estimated pollution remediation liability.
Operating expense before depreciation and amortization decreased $0.3 million, or 0.2 percent from the
prior year. The majority of this decrease is from a reduction in salaries and benefits of $8.1 million or 9.8
percent over the prior year. When including the salaries and benefits capitalized within the capital
improvement program, total operating salaries and benefits costs were $90.6 million, a $9.3 million or 9.4
percent decrease from the prior year total of $99.9 million, reflective of the $12.6 million or 102.1 percent
decrease in retirement expenses as a result of the change in projected and actual earnings on pension plan
investments and changes of assumptions, somewhat offset by a $3.7 million or 4.9 percent increase in
salaries and wages. This decrease is offset by a $4.5 million or 152.4 percent increase in other expenses
primarily from an increase in reserves for claims and judgments and a $3.5 million or 7.9 percent rise in
supplies, repairs and maintenance, attributable to delayed rehabilitation projects for primary and secondary
clarifiers, digester cleaning, and increases in basic repairs and maintenance.
Non-operating expense decreased $16.4 million, or 30.1 percent, primarily resulting from a decrease of
$15.1 million in contributions to other governments for the integration adjustment of Revenue Area 14’s
equity share in OC San’s Joint Works Treatment Facilities based on the flows discharged to OC San and a
decrease of $2.7 million in other non-operating expenses due to prior year project 2-41-8 SARI rock
removal. This decrease is offset by an increase in interest expense of $1.0 million or 3.0 percent from the
prior year and a $0.4 million or 32.7 percent increase in loss on disposal of capital assets.
Capital facility capacity charges decreased $5.0 million, or 22.3 percent from the prior year, due to a
decrease in connection fees collected from cities and supplemental capital facilities capacity charges
assessed to industrial dischargers.
71%
23%
0%6%
Sources of Revenue
June 30, 2021
User Fees
Taxes Levied
Interest Income
Other
9%
43%
36%
11%1%
Functional Expenses
June 30, 2021
Collection
System
Treatment &
Disposal
Depreciation &
Amortization
Interest
Expense
Other
■
■ ■
■
■
■
■ ■
■
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2021
8
Capital Assets
At June 30, 2021, OC San had a net investment of $2.7 billion in capital assets. This represents a net
increase (including additions and deletions) of $33.5 million, or 1.3 percent over the prior year.
(Dollars in thousands)
Land 57,681$ 41,967$ 15,714$ 37.4%
Construction in progress 401,200 363,931 37,269 10.2%
Sewage collection facilities 470,729 494,680 (23,951) -4.8%
Sewage treatment facilities 1,689,476 1,668,008 21,468 1.3%
Effluent disposal facilities 28,784 30,240 (1,456) -4.8%
Solids disposal facilities 258 268 (10) -3.7%
General and administrative facilities 59,609 75,107 (15,498) -20.6%
Capital assets, net 2,707,737$ 2,674,201$ 33,536$ 1.3%
Schedule of Capital Assets
(Net of Depreciation and Amortization)
June 30,
2021
June 30,
2020
Increase
(Decrease)
Percentage
Increase
(Decrease)
Major capital asset additions for the current fiscal year included the following:
$36.5 million Ocean Outfall System Rehabilitation (J-117)
$18.6 million Newhope-Placentia Trunk Replacement (2-72)
$15.9 million Westminster Blvd Force Main Replacement (3-62)
$10.5 million Headworks Modifications at P2 for GWRS Final Expansion (P2-122)
$ 8.0 million Headquarters Complex (P1-128)
$ 7.3 million Headworks Rehabilitation at Plant No. 1 (P1-105)
$ 6.9 million Primary Treatment Rehabilitation at Plant No. 2 (P2-98)
$ 6.5 million Digester Gas Facilities Rehabilitation (J-124)
$ 5.7 million TPAD Digester Facility at Plant 2 (P2-128)
$ 5.1 million Return Activated Sludge Piping Replacement at Plant 1 (P1-129)
$ 4.3 million Return Activated Sludge Piping Replacement at Plant 2 (P2-123)
More detailed information about OC San’s capital assets is provided in Notes 1 and 3 of the Notes to Basic
Financial Statements.
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2021
9
Debt Administration
At June 30, 2021, OC San had $909.6 million outstanding in bonded debt, a net decrease of $30.4 million,
or 3.2 percent from the prior year. This reduction consisted of the accumulation of principal payments made
in accordance with the schedule of debt service payments.
During OC San’s most recent debt refundings, Moody’s, Standard and Poor’s, and Fitch Ratings all
reaffirmed their AAA rating of the Orange County Sanitation District. OC San’s long-range financing plan is
designed to maintain this high rating. Over the next five years, OC San is projecting over $1.2 billion in
future treatment plant and collection system capital improvements. In accordance with OC San’s long-term
debt fiscal policy, OC San will restrict long-term borrowing to capital improvements that cannot be financed
from current revenue. No new debt issuances are being proposed over the next five years to assist with the
funding of the system improvements scheduled over this time period. For more information on long-term
debt activities, see Note 4 of the Notes to Basic Financial Statements.
Economic Factors and Next Year’s Budgets and Rates
The coronavirus pandemic decimated the United States, California, and Orange County economies in
2020 and 2021. There is uncertainty in how quickly California will ease restrictions to reopen the
economy and if there will be renewed shutdowns. Orange County tourism and sales tax revenues have
been hard hit and are affecting many government entity revenue streams. OC San does not rely on
sales or tourism related taxes for revenue.
The unemployment rate within the County of Orange is at 6.5 percent in June 2021, a decrease from
the rate of 13.6 percent in June 2020.
Inflation for the Los Angeles-Long Beach-Anaheim area increased 4.0 percent in June 2021 over the
prior year June 2020 based on the actual percentage change in the consumer price index according to
the U.S. Department of Labor, Bureau of Labor Statistics.
The yield on investments decreased from the 0.4 percent earnings rate in FY 2019-20 to 0.3 percent
for FY 2020-21.
All of these factors are considered in preparing OC San’s biennium budget.
As members of the community, we understand the financial impacts of COVID-19 on Orange County and
that many of our ratepayers have incurred great losses.
The Board of Directors voted to adopt the two-year budget and not raise the sewer fee for FY 2020-21 as
originally approved in OC San’s five-year rate schedule. The Single Family Residential (SFR) fee, which is
the underlying rate for all other user rates, is applicable to OC San’s largest customer base: the SFR fee
remained at $339.00 instead of increasing by 1.2 percent or $4.00 to $343.00. The rate increase has been
eliminated for FY 2020-21 in response to COVID-19 and will resume in FY 2021-22. The revenue from
sewer fees is necessary to support OC San’s cash flow needs for operating costs, debt service, and capital
improvement outlays. Capital Improvement costs are projected to total $2.7 billion over the next 10 years
in order to rehabilitate and upgrade existing facilities and maintain full secondary treatment standards.
Requests for Information
The financial report is designed to provide a general overview of OC San’s finances. Questions concerning
any of the information provided in this report or requests for additional financial information should be
addressed to the Financial Management Division, Orange County Sanitation District, 10844 Ellis Avenue,
Fountain Valley, CA 92708-7018.
10
(THIS PAGE LEFT INTENTIONALLY BLANK)
ORANGE COUNTY SANITATION DISTRICT
BASIC FINANCIAL STATEMENTS
11
ORANGE COUNTY SANITATION DISTRICT
Statement of Net Position
June 30, 2021
Current assets:
Cash and cash equivalents 96,935,365$
Investments 863,703,323
Accounts receivable, net of allowance for uncollectibles $424,460 22,860,292
Accrued interest receivable 3,097,236
Connection fees receivable 657,904
Property tax receivable 1,762,822
Inventories 8,452,587
Prepaid expenses 2,534,433
Total current assets 1,000,003,962
Noncurrent assets:
Restricted:
Cash and cash equivalents held by fiscal agents 120
Unrestricted:
Non-depreciable capital assets 458,880,667
Depreciable capital assets, net of accumulated depreciation 2,248,856,574
Other noncurrent assets, net 10,344
Net pension asset - OCERS 68,643,378
Total noncurrent assets 2,776,391,083
Total assets 3,776,395,045
Deferred outflows of resources:
Deferred charges on defeasances 21,716,099
Deferred outflows related to pensions 54,054,179
Total deferred outflows of resources 75,770,278
Total assets and deferred outflows of resources 3,852,165,323
Current liabilities:
Accounts payable 18,955,037
Accrued expenses 10,098,325
Retentions payable 8,028,332
Interest payable 16,943,800
Due to other governmental agency 28,662,360
Current portion of long-term obligations 45,597,991
Total current liabilities 128,285,845
Noncurrent liabilities:
Noncurrent portion of long-term obligations 932,362,755
Total OPEB liability 1,332,528
Total pension liability - ARBA 23,320,422
Total noncurrent liabilities 957,015,705
Total liabilities 1,085,301,550
Deferred inflows of resources:
Deferred inflows related to pensions 56,481,462
Total liabilities and deferred inflows of resources 1,141,783,012
Net position:
Net investment in capital assets 1,740,101,886
Unrestricted 970,280,425
Total net position 2,710,382,311$
See Accompanying Notes to Basic Financial Statements.
12
ORANGE COUNTY SANITATION DISTRICT
Statement of Revenues, Expenses, and Change in Net Position
For the Year Ended June 30, 2021
Operating revenues:
Service charges 335,569,248$
Permit and inspection fees 1,131,137
Total operating revenues 336,700,385
Operating expenses other than depreciation
and amortization:
Salaries and benefits 74,772,427
Utilities 9,789,487
Supplies, repairs and maintenance 47,544,584
Contractual services 22,653,171
Feasibility studies 5,703,613
Other 7,554,880
Total operating expenses other than
depreciation and amortization 168,018,162
Operating income before depreciation
and amortization 168,682,223
Depreciation and amortization 116,452,184
Operating income 52,230,039
Non-operating revenues:
Property taxes 110,245,430
Investment and interest income 1,694,255
Contributions from other governments 20,697,444
Other 6,867,044
Total non-operating revenues 139,504,173
Non-operating expenses:
Interest 34,836,870
Contributions to other governments 1,289,514
Other 62,729
Loss on disposal of assets 1,719,449
Total non-operating expenses 37,908,562
Income before capital contributions 153,825,650
Capital contributions:
Capital facilities capacity charges 17,546,570
Change in net position 171,372,220
Total net position - beginning 2,539,010,091
Total net position - ending 2,710,382,311$
See Accompanying Notes to Basic Financial Statements.
13
ORANGE COUNTY SANITATION DISTRICT
Statement of Cash Flows
For the Year Ended June 30, 2021
Cash flows from operating activities:
Receipts from customers and users 323,354,025$
Payments to employees (87,524,797)
Payments to suppliers (99,741,142)
Net cash provided by operating activities 136,088,086
Cash flows from noncapital financing activities:
Proceeds from property taxes 110,323,815
Payments for other activities 6,807,852
Net cash provided by noncapital financing activities 117,131,667
Cash flows from capital and related financing activities:
Capital facilities capacity charges 21,164,963
Additions to capital assets (139,709,388)
Interest paid (42,698,973)
Principal payments on debt obligations (30,430,000)
Contributions from other governments 16,445,622
Net cash used in capital and related financing activities (175,227,776)
Cash flows from investing activities:
Proceeds from the sale of investments 398,318,417
Purchases of investments (500,156,474)
Interest received 14,212,064
Net cash used in investing activities (87,625,993)
Net decrease in cash and cash equivalents (9,634,016)
Cash and cash equivalents, beginning of year 106,569,501
Cash and cash equivalents, end of year 96,935,485$
Reconciliation of operating income to net cash provided by operating activities:
Operating income 52,230,039$
Adjustments to reconcile operating income to net cash provided by operating activities:
Depreciation and amortization 116,452,184
Bad debt expense (net recoveries)119,841
(Increase)/decrease in operating assets:
Accounts receivable (7,394,900)
Inventories (1,510,474)
Prepaid expenses (61,015)
Increase/(decrease) in operating liabilities:
Accounts payable (2,363,774)
Accrued expenses (6,427,424)
Due to other governmental agency (5,951,460)
Net pension/OPEB liabilities (11,145,108)
Compensated absences 1,548,001
Claims and judgments 592,176
Net cash provided by operating activities 136,088,086$
Noncash activities:
Unrealized loss on the fair value of investments (12,353,608)$
Capital assets acquired through accounts payable 9,129,315
Capital facilities capacity charges acquired (3,618,393)
See Accompanying Notes to Basic Financial Statements.
14
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements For the Year Ended June 30, 2021
15
(1) Summary of Significant Accounting Policies
Reporting Entity The Orange County Sanitation District (OC San) is a public agency which owns and operates certain wastewater facilities in order to provide regional wastewater collection, treatment, and disposal services to approximately 2.6 million people in the northern and central portion of the County of Orange, California. OC San is overseen by a Board comprised of directors appointed by the agencies
and cities which are serviced by OC San.
OC San’s service area was originally formed in 1954 pursuant to the County Sanitation District Act
and consisted of seven independent special districts. Two additional districts were formed and additional service areas were added in 1985 and 1986. These special districts were jointly
responsible for the treatment and disposal facilities which they each used. In April of 1998, the Board of Supervisors of Orange County passed Resolution 98-140 approving the consolidation of the
existing nine special districts into a new, single sanitation district. This action was taken in order to simplify the governance structures, reduce the size of OC San’s Board of Directors, ease
administrative processes, streamline decision-making and consolidate accounting and auditing processes. Pursuant to the Resolution and Government Code Section 57500, the predecessor
special districts transferred and assigned all of their powers, rights, duties, obligations, functions and properties to OC San, including all assets, liabilities, and equity.
Effective July 1, 1998, the organization became known as the Orange County Sanitation District. The boundaries of one of the previous districts, now known as Revenue Area No. 14, have been
maintained separately because their use of OC San’s collection, treatment, and disposal system is funded by the Irvine Ranch Water District (IRWD). The boundaries of the other eight districts have
been consolidated and are collectively referred to as the Consolidated Revenue Area. OC San utilizes joint operating and capital outlay accounts to pay joint treatment, disposal, and construction
costs. These joint costs are allocated to each revenue area based on gallons of sewage flow. The supplemental schedules and statements show internal segregations and are not intended to
represent separate funds for presentation as major or non-major funds in the basic financial statements.
The accompanying financial statements present OC San and its blended component unit, the Orange County Sanitation District Financing Corporation (Corporation). The Corporation is a legally
separate entity although in substance it is considered to be part of OC San’s operations. OC San is considered to be financially accountable for the Corporation which is governed by a board comprised
entirely of OC San’s board members. There is no requirement for separate financial statements of the Corporation; consequently, separate financial statements for the Corporation are not prepared.
The Corporation had no financial activity during the fiscal year ended June 30, 2021, other than principal and interest payments on outstanding certificates of participation, revenue obligations, and
notes (see Note 4).
OC San is independent of and overlaps other formal political jurisdictions. There are many governmental entities, including the County of Orange, that operate within OC San’s jurisdiction; however, financial information for these entities is not included in the accompanying financial statements in accordance with the Governmental Accounting Standards Board (GASB).
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
16
Measurement Focus and Basis of Accounting OC San operates as an enterprise activity. Enterprise funds account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the Board of Directors is that the costs (expenses, including depreciation and amortization) of providing services to the general public on a continuing basis be financed or recovered primarily through user charges.
Basis of accounting refers to when revenues and expenses are recognized in the accounts and
reported in the financial statements. Enterprise funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting, whereby revenues are
recognized when earned and expenses are recognized when incurred, regardless of the timing of related cash flows.
The accounting policies of OC San conform to accounting principles generally accepted in the United States of America (GAAP) as applicable to governments. The GASB is the accepted standard-
setting body for establishing governmental accounting and financial reporting principles in the United States.
Operating Plans Each year, OC San staff prepares an annual operating plan which is adopted by the Board of Directors. The annual operating plan is used to serve as a basis for monitoring financial progress, estimating the levy and collection of taxes, and determining future service charge rates. During the
year, these plans may be amended as circumstances or levels of operation dictate.
Cash and Cash Equivalents Investments with original maturities of three months or less when purchased and money market mutual funds and external investment pools that can be withdrawn on demand are considered to be cash equivalents.
Investments Except for certain investments in monies held by fiscal agents as disclosed in Note 2, section “Fair Value of Investments”, all other investments are stated at fair value (the price that would be received
to sell an asset in an orderly transaction between market participants acting in their economic best interest at the measurement date). Changes in fair value that occur during the fiscal year are
reported as part of investment and interest income. Investment and interest income includes interest earnings and realized and unrealized gains or losses in fair value. Investment and interest income
are recorded as revenues and receivables when declared and realized gains or losses are recorded when the investment is sold.
Accounts Receivable Accounts receivable is reported net of the allowance for uncollectible receivables. Uncollectible
receivables were $424,460 at June 30, 2021. Unbilled sewer services through June 30, 2021 are recorded as revenue and receivables. Management determines the allowance for uncollectible
receivables by evaluating individual accounts receivable at least one year past due and considering a customer’s financial condition, credit history and current economic conditions. Accounts
receivables are written off when deemed uncollectible. Recoveries of accounts receivables previously written off are recorded when received.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
17
Inventories Inventories, which are held for consumption and not resale, are stated at cost on a weighted-average basis and are expensed when used.
Capital Assets Outlays for property, plant, equipment, and construction in progress are recorded in the revenue area which will use the asset. Such outlays may be for individual revenue area assets or for a
revenue area’s share of joint assets.
Capital assets of property, plant, and equipment are defined as assets with an initial, individual cost
of more than $10,000 and an estimated useful life of at least three years. Such assets are recorded at cost, except for donated capital assets, donated works of art and similar items, and capital assets
received in a service concession arrangement, which are recorded at acquisition value at the time received. Cost includes labor; materials; outside services; vehicle and equipment usage; other
ancillary costs consisting of direct charges such as engineering, purchasing, supervision, or fringe benefits. Interest costs, net of interest earnings, have been capitalized on projects prior to fiscal year
2017-2018. Commencing with fiscal year 2017-2018, OC San early implemented GASB Statement No. 89, where interest costs incurred before the end of the construction period are no longer
capitalized.
Depreciation of plant and equipment is provided for over the estimated useful lives of the assets
using the straight-line method in accordance with generally accepted accounting principles. OC San also considers the guidelines of estimated useful lives as recommended in the State of California
Controller’s Uniform System of Accounts for Waste Disposal Districts, which range from 3 to 75 years. The following are estimated useful lives for major classes of depreciable assets: Sewage
collection facilities – 50 years, Sewage treatment facilities – 40 years, Sewage disposal facilities – 40 years, General plant and administrative structures – 40 years, and other General plant and
administrative facilities and equipment – 4 to 25 years.
Restricted Assets Certain assets are classified as restricted because their use is limited by applicable debt covenants. Specifically, the assets are restricted for installment payments due on certificates of participation
and revenue obligations or are maintained by a trustee as a reserve requirement for the certificates of participation and revenue obligations. When both restricted and unrestricted resources are
available for use, it is OC San’s policy to use restricted resources first, then unrestricted resources as they are needed.
Amortization Amortization of the excess purchase price over the book value of assets acquired is provided using
the straight-line method over an estimated useful life of 30 years.
Premiums and discounts on certificate anticipation notes and wastewater refunding revenue
obligations are amortized to interest expense over the respective terms of the installment obligations based on the effective interest method (Note 4).
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
18
Deferred Charges on Defeasances For advance refundings resulting in defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt (i.e. deferred charges) is reported as a deferred outflow of resources and amortized to interest expense based on the effective interest method over the remaining life of the old debt or the life of the new debt, whichever is shorter. OC San’s deferred charges on the refunding debt at June 30, 2021 are $21,716,099.
Net Position Net position represents the total of assets and deferred outflows of resources less liabilities and
deferred inflows of resources, and is classified into two categories:
Net Investment in Capital Assets – This amount consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets and excludes unspent debt proceeds. Deferred
outflows of resources that are attributable to the acquisition, construction or improvement of those assets or related debt also are included in this component of net position.
Unrestricted – This amount represents the residual of amounts not classified in the other category and represents the net position available for OC San.
Compensated Absences OC San’s employees, other than operations and maintenance personnel, are granted vacation and
sick leave in varying amounts with maximum accumulations of 200 hours and 560 hours for vacation and sick days earned but unused, respectively. Operations and maintenance personnel accrue
between 80 and 250 personal leave hours per year depending on years of service, which can be accumulated up to a maximum of 440 hours. All accrued and unused vacation or personal leave is paid to the employee upon termination or retirement of the employee. Accrued and unused sick leave is paid to the employee at a percentage rate based on years of service, as stated in the
Memorandum of Understanding for each bargaining group.
Vacation and sick leave benefits and personal days are recorded as an expense and liability when
earned by eligible employees. The distribution between current and long-term portions of the liability is based on historical trends.
Claims and Judgments OC San records estimated losses when it is probable that a claim liability has been incurred and
when the amount of the loss can be reasonably estimated. Claims payable includes an estimate for incurred but unreported claims. The distribution between current and long-term portions of the
liability is based on historical trends.
Pensions OC San has two defined benefit pension plans for retirees: the plan maintained through and by the Orange County Employees Retirement System (OCERS) and the Additional Retiree Benefit Account
(ARBA) administered directly by OC San. For purposes of measuring the net pension liability, deferred outflows of resources related to pensions, deferred inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of OC San’s cost sharing multiple-employer plan with the OCERS plan (Plan) and additions to/deductions from the
Plan’s fiduciary net position have been determined on the same basis as they are reported by OCERS. Benefit payments (including refunds of employee contributions) are recognized when due
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
19
and payable in accordance with the benefit terms. Investments are reported at fair value. A deferred outflow of resources and deferred inflow of resources related to pensions result from changes in the components of the net pension liability and are applicable to a future reporting period (Note 5).
Property Taxes The County is permitted by State law (Proposition 13) to levy taxes at one percent of full market value (at time of purchase) and can increase the assessed value no more than two percent per year. OC San receives a share of this basic levy, proportionate to what was received in the 1976 to 1978 period.
Property taxes are determined annually and attached as enforceable liens on real property as of January 1 and are payable in two installments which become delinquent after December 10 and
April 10. The County bills and collects the property taxes and remits them to OC San in installments during the year. Property tax revenues are recognized when levied. The Board of Directors has
designated property tax revenue to be used for the annual debt service requirements prior to being used as funding for current operations.
Capital Facilities Capacity Charges Capital facilities capacity charges represent fees imposed at the time a structure is newly connected
to OC San’s system, directly or indirectly, or an existing structure or category of use is increased. This charge is to pay for OC San facilities in existence at the time the charge is imposed or to pay for new facilities to be constructed that are of benefit to the property being charged.
Operating and Non-operating Revenues and Expenses Operating revenues and expenses result from collecting, treating, and disposing of wastewater and inspection and permitting services. OC San’s operating revenues consist of charges to customers
for the services provided. Operating expenses include the cost of providing these services, administrative expenses, and depreciation and amortization expenses. All revenues and expenses not meeting these definitions and which are not capital in nature are reported as non-operating revenues and expenses.
Self-Insurance Plans For the year ended June 30, 2021, OC San was self-insured for portions of workers’ compensation,
property damage, and general liability. The self-insurance portion of the workers’ compensation exposure is the $1 million deductible per occurrence under the outside excess insurance coverage
to statutory levels. The self-insurance portion of the property damage exposure covering fire and other perils is the $500,000 per occurrence deductible (for most perils) under the outside excess
property insurance coverage to $800 million. The self-insurance portion of the property damage exposure covering flood is the $500,000 per occurrence deductible with outside excess property
insurance coverage to $100 million. The self-insurance portion of the property damage exposure covering earthquake is the 5% per structure, minimum $5 million deductible with outside excess
insurance coverage to $25 million on covered structures. OC San has insured a number of key structures against the peril of earthquake, all other structures are completely self-insured. The self-
insurance portion of the boiler & machinery exposure is the deductible ranging from $25,000 to $350,000 under the outside excess boiler & machinery insurance coverage to $100 million per
occurrence combined limit. The self-insurance portion of the general liability exposure is the $750,000 per occurrence deductible under the outside excess liability coverage to $40 million per
occurrence and aggregate. The self-insurance portion of the pollution liability exposure is the $75,000 per loss deductible under the outside pollution liability insurance coverage to $10 million.
There were no significant changes in insurance coverage during fiscal year ended June 30, 2021.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
20
During the past three fiscal years there have been no settlements in excess of covered amounts. Claims against OC San are processed by General Counsel or an outside claim administrator. These claims are charged to claims expense based on estimated or known amounts which will ultimately be paid. Claims incurred but not yet reported have been considered in determining the accrual for
loss contingencies. Workers’ compensation reserves are actuarially determined and general liability estimated loss accruals are estimated using past experience adjusted for current trends and any
other factors that would modify past experience. The estimate of the claims liability also includes any amounts for incremental and nonincremental claim adjustment expenses. OC San management
believes that there are no unrecorded claims as of June 30, 2021 that would materially affect the financial position of OC San.
Deferred Compensation Plan OC San offers its employees a deferred compensation plan established in accordance with Internal
Revenue Code Section 457. The plan permits all employees of OC San to defer a portion of their salary until future years. The amount deferred is not available to employees until termination,
retirement, death or for unforeseeable emergency. The assets of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries. Since the plan assets are administered by an outside party and are not subject to the claims of OC San’s general creditors, in accordance with GASB Statement No. 32, the plan’s assets and liabilities are not included within OC San’s
financial statements.
New Accounting Pronouncements OC San early implemented GASB Statement No. 98, The Annual Comprehensive Financial Report, for the fiscal year ended June 30, 2021, which establishes the term Annual Comprehensive Financial Report and its acronym ACFR to replace Comprehensive Annual Financial Report and its acronym under generally accepted accounting principles. Implementation of this Standard resulted in OC San
renaming this document but did not have an impact on OC San’s financial statements.
The following GASB Statements have been issued but are not yet effective for the year ended June
30, 2021. OC San is assessing what financial statement impact, if any, these Statements will have:
GASB Statement No. 87, Leases, effective for the fiscal year ending June 30, 2022.
GASB Statement No. 92, Omnibus 2020, effective upon issuance for the requirements related to the effective date of GASB Statement No. 87 and Implementation Guide 2019-3, reinsurance recoveries, and terminology used to refer to derivative instruments. The other requirements will be effective for the fiscal year ending June 30, 2022.
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment
Arrangements, effective for the fiscal year ending June 30, 2023.
GASB Statement No. 96, Subscription-Based Information Technology Arrangements, effective for the fiscal year ending June 30, 2023.
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial
Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an
amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement
No. 32, effective for the fiscal year ending June 30, 2022.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
21
(2) Cash and Investments
Cash and investments as of June 30, 2021 are classified within the accompanying Statement of Net
Position as follows:
Statement of Net Position:
Current assets, unrestricted:
Cash and cash equivalents 96,935,365$
Investments 863,703,323
Subtotal - current, unrestricted 960,638,688
Noncurrent assets, restricted:
Cash and cash equivalents 120
Total cash and investments 960,638,808$
Cash and investments consist of the following as of June 30, 2021:
Cash on hand 6,634$
Deposits with financial institutions 1,649,226
Managed portfolio - cash and investments 958,982,828
Subtotal - unrestricted cash and investments 960,638,688
Monies held by trustees:
Cash and cash equivalents 120
Total cash and investments 960,638,808$
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
22
Investments Authorized by the California Government Code and OC San’s Investment Policy The following table identifies the investment types that are authorized by the California Government Code and OC San’s investment policy. This table and the subsequent tables identify certain provisions of either the California Government Code or OC San’s investment policy (whichever is more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
Maximum
Maximum Investment
Investment Type - Authorized by Maximum Percentage in a Single
the California Government Code Maturity (1 ) (3)of Portfolio (1)Issuer (1 )
Local Agency Bonds 5 years 10% (2) 5% (2)
U.S. Treasury Obligations 5 years No limit No limit
California State Treasury Obligations 5 years No limit No limit
U.S. Agency Securities 5 years No limit 20% (2)
Banker's Acceptances 180 days 40% 5% (2)
Commercial Paper 270 days 40% 5% (2)
Negotiable Certificates of Deposit 5 years 30% 5% (2)
Certificates of Deposit 5 years No limit 5% (2)
Repurchase Agreements 1 year 20% (2) 5% (2)
Reverse Repurchase Agreements 90 days (2) 5% (2) 5% (2)
Corporate Medium-Term Notes 5 years 30% 5% (2)
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 20% 20%
Mortgage Pass-Through Securities/
CMO/Asset-Backed Securities 5 years 20% 5% (2)
County Investment Pools N/A 15% (2) 15% (2)
Local Agency Investment Fund (LAIF) N/A No limit No limit
Supranational Obligations 5 years 30% 30%
Public Bank Obligations 5 years No limit 5% (2)
Notes
(1) Restrictions are in accordance with the California Government Code unless indicated otherwise.
(2) The restriction is in accordance with OC San's Investment Policy which is more restrictive than the California Government Code.
(3) As allowed by California Government Code Section 53601, the Board of Directors has adopted a policy of a maximum
maturity of 5 years for investments purchased by OC San's external money manager for the long-term investment portfolio.
The duration of the long-term investment portfolio can never exceed 60 months. Investments purchased for the short-term
portfolio are subject to the maturity restrictions noted in this table.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
23
Investments Authorized by Debt Agreements The investment of debt proceeds held by trustees is governed by provisions of the debt covenant agreements, rather than the general provisions of the California Government Code or OC San’s
investment policy. The following table identifies the investment types that are authorized for investments held by OC San’s debt trustees. This table and the subsequent tables identify certain
provisions of the debt covenant agreements that address interest rate risk, credit risk, and concentration of credit risk.
Maximum Maximum
Investment Type - Authorized by Maximum Percentage Investment in a
the Debt Covenant Agreement Maturity of Portfolio Single Issuer
U.S. Treasury Obligations No Limit No limit No limit
U.S. Agency Securities No Limit No limit No limit
State and Local Agency Bonds No Limit No limit No limit
Certificates of Deposit No Limit No limit No limit
Banker's Acceptances 180 days No limit No limit
Repurchase Agreements 1 year No limit No limit
Investment Agreements No Limit No limit No limit
Forward Purchase Agreements No Limit No limit No limit
Reserve Fund Put Agreements No Limit No limit No limit
Guaranteed Investment Contracts No Limit No limit No limit
Commercial Paper 270 days No limit No limit
Money Market Mutual Funds N/A No limit No limit
Local Agency Investment Fund (LAIF) N/A No limit No limit
Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer an investment has before maturity, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that OC San manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time, as necessary to provide the cash flow and liquidity needed for operations.
OC San monitors the interest rate risk inherent in its managed portfolio by measuring the modified duration of its portfolio. The duration of monies held for shorter term purposes is recommended by OC San’s Treasurer and is based on OC San’s cash flow requirements in meeting current operating and capital needs. The average duration of monies invested for shorter term purposes may never exceed 180 days. The duration of monies held for longer term purposes is recommended annually by OC San’s Treasurer and is based on OC San’s five-year cash flow forecast. The average duration may not exceed 120 percent nor be less than 80 percent of the recommended duration. The average duration of monies invested for longer term purposes may never exceed 60 months. There is no stated maximum maturity for the Money Market Mutual Funds. The money market mutual funds for BlackRock Institutional Fund and First American Government Obligations Fund are daily liquid funds available on demand.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
24
Following is a table which summarizes OC San’s managed portfolio investments by purpose with the modified duration as of June 30, 2021:
Modified ModifiedDuration DurationInvestment Type Fair Value (in years)(in months)
Short-Term Portfolio:
U.S. Treasury Notes 132,645,925$ 0.390 4.68
Local Agency Investment Fund 67,790,589 0.797 9.57
U.S. Treasury Bills 30,998,766 0.152 1.82
Money Market Mutual Funds 14,334,524 - -
Negotiable Certificates of Deposit 8,002,330 0.825 9.89
Commercial Paper 7,993,120 0.535 6.41
U.S. Agency Securities 7,524,549 0.153 1.84
Corporate Medium-Term Notes 6,110,960 0.803 9.64
Short-term portfolio subtotal 275,400,763 0.463 5.56
Long-Term Portfolio:
U.S. Treasury Notes 229,042,275 2.703 32.44
U.S. Agency Securities* 172,573,819 2.862 34.34
Corporate Medium-Term Notes 146,697,464 2.375 28.50
Supranationals 61,692,730 2.992 35.91
Asset Backed Securities/CMO* 30,756,748 1.362 16.34
Negotiable Certificates of Deposit 17,004,560 0.767 9.20
U.S. Treasury Inflation-Protected Securities (TIPS) 12,574,071 3.070 36.84
Commercial Paper 11,999,040 0.071 0.85
Money Market Mutual Funds 1,155,352 - -
U.S. Govt. Backed Mortgage Pools (GNMA)* 86,006 3.149 37.79
Long-term portfolio subtotal 683,582,065 2.546 30.55
Total Portfolio 958,982,828$
* Includes highly sensitive securities.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
25
OC San monitors the interest rate risk inherent in its other investments using specific identification of the investments. Following is a table of these investments all held by trustees, as of June 30, 2021:
Fair Value Maturities
Cash equivalents held by fiscal agents:
Money Market Mutual Funds:
First American Government Obligations Fund 91$ 27 days
BlackRock Institutional Funds 29 34 days
Total fair value of investments held by fiscal agents 120$
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations OC San’s investments (including investments held by trustees) include the following investments that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above):
Mortgage-backed securities: These securities are subject to early payment in a period of declining interest rates. The resulting reduction in expected total cash flows affects the fair value of these securities, making them highly sensitive to change in interest rates. At fiscal year end, the fair value of investments in mortgage-backed securities totaled $1,418,306 including $835,562 of mortgage pass-through securities, $496,738 of U.S. agency securities, and $86,006 of U.S. government backed mortgage pools.
Fair Value of Investments OC San measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows:
Level 1: Quoted prices for identical investments in active markets;
Level 2: Observable inputs other than quoted market prices; and
Level 3: Unobservable inputs.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
26
At June 30, 2021, OC San had the following fair value measurements for its managed investment portfolio:
Quoted Prices Significant
in Active OtherMarkets for Observable UnobservableIdentical Assets Inputs InputsInvestment Type Fair Value Level 1 Level 2 Level 3
Investments in Short-Term Portfolio:
U.S. Treasury Notes 132,645,925$ -$ 132,645,925$ -$
U.S. Treasury Bills 30,998,766 - 30,998,766 -
Negotiable Certificates of Deposit 8,002,330 - 8,002,330 -
U.S. Agency Securities 7,524,549 - 7,524,549 -
Commercial Paper 7,993,120 - 7,993,120 -
Corporate Medium-term Notes 6,110,960 6,110,960 -
Investments in Long-Term Portfolio:
U.S. Treasury Notes 229,042,275 - 229,042,275 -
U.S. Agency Securities 172,573,819 - 172,573,819 -
Corporate Medium-term Notes 146,697,464 - 146,697,464 -
Supranationals 61,692,730 - 61,692,730 -
Asset Backed Securities/CMO 30,756,748 - 30,756,748 -
Negotiable Certificates of Deposit 17,004,560 - 17,004,560 -
U.S. Treasury Inflation Protected Securities (TIPS) 12,574,071 - 12,574,071 -
Commercial Paper 11,999,040 - 11,999,040 -
U.S. Government Backed Mortgage Pools 86,006 - 86,006 -
Fair Value Hierarchy Totals -$ 875,702,363$ -$
Investments Not Subject To Fair Value Hierarchy:
Local Agency Investment Fund (LAIF)* 67,790,589
Money Market Mutual Funds* 14,334,524
Money Market Mutual Funds** 1,155,352
Total Portfolio 958,982,828$
* Invested in Short-Term Portfolio
** Invested in Long-Term Portfolio
US Bank is the custodial bank for all of OC San’s investments shown above in the managed portfolio,
except for LAIF. Investments classified as Level 2 are valued using US Bank’s fair value hierarchy
matrix based on the asset type classification. The fair value hierarchy level matrix is based on
discussions with (1) pricing vendors, (2) broker/dealers, (3) investment managers, (4) industry
groups, and (5) independent accounting firms.
Monies held by trustees (fiscal agents) that are invested in money market mutual funds are reported at carrying cost.
Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. The following table presents the minimum rating as required by the
California Government Code, OC San’s investment policy, or debt agreements, and the actual rating
as of year-end for each investment type:
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
27
Investment Type and the Lowest Rating Reported at Year End
Investments with no legal minimum rating & no required disclosure:U.S. Treasury Obligations 405,261,037$ U.S. Agency Securities - GNMA 86,006 Subtotal 405,347,043$ Investments with no legal minimum rating:U.S. Agency Securities (other than GNMA):Rating of AA+ (Standard & Poor's) 172,573,819 Rating of P-1 (Moody's) 7,524,549 Negotiable Certificates of Deposit:Rating of A-1 ((Standard & Poor's) 15,005,090 Rating of P-1 (Moody's) 10,001,800 Local Agency Investment Fund (LAIF):Not rated 67,790,589 Subtotal 272,895,847 Investments with a legal minimum rating (or its equivalent) of A:Corporate Medium-Term Notes:Rating of Aaa (Moody's) 3,045,731 Rating of Aa1 (Moody's) 3,183,840 Rating of Aa2 (Moody's) 7,785,192
Rating of AA- (Standard & Poor's) 5,314,800 Rating of Aa3 (Moody's) 1,080,280
Rating of A1 (Moody's) 29,807,170 Rating of A+ (Fitch) 6,689,170
Rating of A2 (Moody's) 33,923,293 Rating of A (Standard & Poor's) 8,305,410
Rating of A- (Standard & Poor's)* 23,321,716 Rating of A3 (Moody's)* 16,638,662 Rating of BBB+ (Standard & Poor's)* 13,708,960 Not rated 4,200 Subtotal 152,808,424 Investments with a legal minimum rating (or its equivalent) of AA:Asset Backed Securities/CMO:Rating of Aaa (Moody's) 21,161,252 Rating of AAA (Standard & Poor's) 8,749,730 Rating of AA+ (Standard and Poor's) 719,218 Rating of BBB (Standard and Poor's)* 116,344 Rating of B (Standard & Poor's)* 10,204 Supranational Obligations:
Rating of Aaa (Moody's) 61,692,730
Subtotal 92,449,478 Investments with a legal minimum rating (or its equivalent) of AAA:Money Market Mutual Funds:
Rating of Aaa (Moody's) 15,489,876 Invested with fiscal agents:Rating of Aaa-mf (Moody's) 120
Subtotal 15,489,996 Investments with a legal minimum rating (or its equivalent) of "Prime":Commercial Paper:Rating of F-1 (Fitch) 3,996,000
Rating of A-1 (Standard & Poor's) 15,996,160
Subtotal 19,992,160
Total 958,982,948$
* Investment was in compliance with legal requirements at the time it was purchased.
Fair Value
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
28
Concentration of Credit Risk Limitations on the amount that OC San is allowed to invest in any one issuer have been identified previously in the section “Investments Authorized by the California Government Code and OC San’s Investment Policy” and in the section “Investments Authorized by Debt Agreements”. OC San follows whichever guideline is the most restrictive.
As of June 30, 2021, OC San had the following investments representing five percent or more of
total investments:
Name of Issuer Fair Value % of Total
Federal Home Loan Bank System (FHLB) 54,334,775$ 5.67%
Federal National Mortgage Association (FNMA) 76,087,632$ 7.93%
Custodial Credit Risk Custodial credit risk for deposits is the risk that in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and OC San’s investment policy contain legal requirements that limit the exposure to custodial credit risk for deposits as follows: a financial institution must secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
Custodial credit risk for investments is the risk that in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and OC San’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. As of June 30, 2021, in accordance with OC San’s investment policy, none of OC San’s investments were held with a counterparty. All of OC San’s investments were held with an independent third party custodian bank registered in the name of OC San. OC San uses US Bank as a third party custody and safekeeping service for its investment securities.
Investment in State Investment Pool OC San is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of OC San’s investment in this pool is reported in the accompanying financial statements at amounts based upon OC San’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF’s investment portfolio are mortgage-backed securities, other asset-backed securities, loans to certain state funds, securities with interest rates that vary according to changes in rates greater than a one-for-one basis, and structured notes. The amounts invested in LAIF are recorded as cash and cash equivalents at June 30, 2021.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
29
(3) Capital Assets
Capital asset activity for the year ended June 30, 2021 is as follows:
Beginning Ending
Balance at Additions / Deletions / Balance at
July 1, 2020 Transfers Transfers June 30, 2021
Capital assets not depreciated:
Cost:
Land 41,967,355$ 15,713,268$ -$ 57,680,623$
Construction in progress 363,930,835 148,303,527 (111,034,318) 401,200,044
Total nondepreciable assets 405,898,190 164,016,795 (111,034,318) 458,880,667
Depreciable capital assets:
Cost:
Sewage collection facilities 892,975,053 4,513,695 - 897,488,748
Sewage treatment facilities 2,746,327,817 99,427,755 (2,968,718) 2,842,786,854
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 (6,429,173) (4,006,925) 248,712,229
Excess purchase price over book
value on acquired assets 19,979,000 - - 19,979,000
Subtotal 4,018,865,449 97,512,277 (6,975,643) 4,109,402,083
Accumulated depreciation:
Sewage collection facilities (398,294,838) (28,464,974) - (426,759,812)
Sewage treatment facilities (1,078,319,944) (77,453,297) 2,462,480 (1,153,310,761)
Effluent disposal facilities (66,732,610) (1,455,840) - (68,188,450)
Solids disposal facilities (3,195,126) (9,719) - (3,204,845)
General and administrative facilities (184,041,212) (9,068,354) 4,006,925 (189,102,641)
Excess purchase price over book
value on acquired assets (19,979,000) - - (19,979,000)
Subtotal (1,750,562,730) (116,452,184) 6,469,405 (1,860,545,509)
Net depreciable assets 2,268,302,719 (18,939,907) (506,238) 2,248,856,574
Net capital assets 2,674,200,909$ 145,076,888$ (111,540,556)$ 2,707,737,241$
For the fiscal year ended June 30, 2021, capital asset additions of $97.5 million in depreciable capital assets are $13.5
million less than the $111.0 million transferred from Construction in Progress due to $15.7 million of land additions and
$1.3 million of prior capital project expenses that were written off as expense, partially offset by $3.5 million of capital
equipment purchases. Depreciable capital assets additions accrued in previous years of $15.1 million were transferred
from general and administrative facilities to sewage treatment facilities.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
30
(4) Long-Term Liabilities
The following is a summary of the changes in long-term liabilities for the year ended June 30, 2021:
Beginning Ending Balance, Due within Long-term
Balance, July 1 Additions Deletions June 30 one year amount
Compensated absences 8,964,314$ 8,649,859$ (7,101,858)$ 10 ,5 12 ,315$ 8,413,886$ 2,098,429$
Claims and judgments 3,740,721 1,145,818 (553,642) 4,332,897 448,800 3,884,097
Certificates of participation,
revenue obligations & notes 940,050,000 - (30,430,000) 909,620,000 28,405,000 881,215,000
Unamortized premium 64,165,901 - (10,670,367) 53,495,534 8,330,305 45,165,229
Totals 1,016,920,936$ 9,795,677$ (48,755,867)$ 977,960,746$ 45,597,991$ 932,362,755$
Compensated Absences OC San’s policies related to compensated absences are described in Note 1. OC San’s liability at
June 30, 2021 is $10,512,315 with an estimated $8,413,886 to be paid or used within the next fiscal year.
Claims and Judgments Payable OC San is self-insured in a number of areas as described in Note 1. The following is a summary of
the change in claims and judgments payable for the years ended June 30, 2021 and 2020:
2020-21 2019-20
Claims and judgments payable at July 1 3,740,721$ 6,860,326$
Claims incurred during the fiscal year 895,011 405,346
Changes in estimates for claims of prior years 250,807 (3,122,401)
Payments on claims during the fiscal year (553,642) (402,550)
Claims and judgments payable at June 30 4,332,897 3,740,721
Less: current portion (448,800) (600,560)
Total long-term claims and judgments payable 3,884,097$ 3,140,161$
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
31
Certificates of Participation, Revenue Obligations, and Notes OC San issues certificates of participation, revenue obligations, and notes in order to finance construction of the treatment facilities. Each issuance represents a direct and proportionate interest in the semi-annual interest payments. Installment payments for the issues are payable from any source of lawfully available funds of OC San. Certificates of participation, revenue obligations, and notes at June 30, 2021 are summarized as follows:
Amount
2010A wastewater revenue obligations 80,000,000$
2010C wastewater revenue obligations 157,000,000
2011A wastewater refunding revenue obligations 75,370,000
2012A wastewater refunding revenue obligations 100,645,000
2012B wastewater refunding revenue obligations 8,170,000
2014A wastewater refunding revenue obligations 56,080,000
2015A wastewater refunding revenue obligations 127,510,000
2016A wastewater refunding revenue obligations 136,830,000
2017A wastewater refunding revenue obligations 65,815,000
2018A revenue refunding certificate anticipation notes 102,200,000
Total certificates of participation, revenue obligations, and notes 909,620,000$
Outstanding Certificates of Participation, Revenue Obligations, and Notes All of the outstanding debt of OC San is senior lien debt with rate covenants that require a minimum coverage ratio of 1.25. The minimum coverage ratio is the ratio of net annual revenues available for debt service requirements to total annual debt service requirements. As of June 30, 2021, the coverage ratio for senior lien debt was 4.25.
May 2010 Wastewater Revenue Obligations, Series 2010A On May 18, 2010, OC San completed the sale of $80,000,000 of wastewater revenue obligations under the federally taxable Build America Bonds program. The obligations were issued to finance and reimburse OC San for the acquisition, construction, and installation of additional improvements made to the wastewater system. The stated interest rate on the obligations is fixed and will range from 5.56 percent to 5.58 percent, however, in accordance with their designation as Build America Bonds, OC San expects to receive a cash subsidy from the United States Treasury equal to 35 percent of the interest payable with respect to these revenue obligations. The expected net interest rate on the obligations is fixed and will range from 3.614 percent to 3.627 percent. Annual principal payments are due on February 1, beginning February 1, 2034 through February 1, 2040.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
32
December 2010 Wastewater Revenue Obligations, Series 2010C On December 8, 2010, OC San completed the sale of $157,000,000 of wastewater revenue obligations under the federally taxable Build America Bonds program. The obligations were issued to finance and reimburse OC San for the acquisition, construction, and installation of additional improvements made to the wastewater system. The stated interest rate on the obligations is fixed and will range from 6.35 percent to 6.40 percent, however, in accordance
with their designation as Build America Bonds, OC San expects to receive a cash subsidy from the United States Treasury equal to 35 percent of the interest payable with respect to these
revenue obligations. The expected net interest rate on the obligations is fixed and will range from 4.1275 percent to 4.16 percent. Annual principal payments are due on February 1,
beginning February 1, 2031 through February 1, 2044.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
October 2011 Wastewater Refunding Revenue Obligations, Series 2011A On October 3, 2011, OC San completed the sale of $147,595,000 of wastewater refunding revenue obligations. The obligations were issued to partially refund $89,800,000 of the outstanding principal balance of the 2000 Series A and B refunding certificates of participation
and $83,320,000 of the outstanding principal balance of the 2003 certificates of participation. The stated interest rate on the obligations is fixed and will range from 3 percent to 5 percent.
Annual principal payments are due on August 1 and February 1, beginning August 1, 2012 through February 1, 2026.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
March 2012 Wastewater Refunding Revenue Obligations, Series 2012A On March 22, 2012, OC San completed the sale of $100,645,000 of wastewater refunding revenue obligations. The obligations were issued to refund the $108,180,000 outstanding principal balance of the 2003 certificates of participation. The stated interest rate on the obligations is fixed and will range from 3 percent to 4 percent. Annual principal payments are
due on February 1, beginning February 1, 2031 through February 1, 2033.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
August 2012 Wastewater Refunding Revenue Obligations, Series 2012B On August 16, 2012, OC San completed the sale of $66,395,000 of wastewater refunding
revenue obligations. The obligations were issued to refund the $91,900,000 outstanding principal balance of the Series 2000A and 2000B refunding certificates of participation. The
stated interest rate on the obligations is fixed and will range from 3 to 5 percent. Annual principal payments are due on February 1, beginning February 1, 2019 through February 1, 2026.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
33
August 2014 Wastewater Refunding Revenue Obligations, Series 2014A On August 7, 2014, OC San completed the sale of $85,090,000 of wastewater refunding revenue obligations. The obligations were issued to partially refund $93,930,000 of the outstanding principal balance of the 2007 Series B certificates of participation. The stated interest rate on the obligations is fixed at 5 percent. Annual principal payments are due on February 1, beginning February 1, 2018 through February 1, 2027.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
February 2015 Wastewater Refunding Revenue Obligations, Series 2015A On February 12, 2015, OC San completed the sale of $127,510,000 of wastewater refunding revenue obligations. The obligations were issued to partially refund $152,990,000 of the
outstanding principal balance of the 2007 Series B certificates of participation. The stated interest rate on the obligations is fixed at 5 percent. Annual principal payments are due on February 1, beginning February 1, 2028 through February 1, 2037.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
March 2016 Wastewater Refunding Revenue Obligations, Series 2016A On March 30, 2016, OC San completed the sale of $145,880,000 of wastewater refunding
revenue obligations. The obligations were issued to partially refund $162,780,000 of the outstanding principal balance of the 2009 Series A certificates of participation. The stated interest rate on the obligations is fixed and will range from 4 to 5 percent. Annual principal payments are due on February 1, beginning February 1, 2020 through February 1, 2039.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
February 2017 Wastewater Refunding Revenue Obligations, Series 2017A On February 1, 2017, OC San completed the sale of $66,370,000 of wastewater refunding revenue obligations. The obligations were issued to refund the $91,620,000 outstanding
principal balance of the 2007 Series A certificates of participation. The stated interest rate on the obligations is fixed at 5 percent. Annual principal payments are due on February 1, beginning February 1, 2021 through February 1, 2030.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
November 2018 Revenue Refunding Certificate Anticipation Notes, Series 2018A On November 1, 2018, OC San completed the sale of $102,200,000 of revenue refunding
certificate anticipation notes. The notes were issued to refund the $109,875,000 outstanding principal balance of the 2016 Series B revenue refunding certificate anticipation notes. The
interest rate on the notes is fixed at 5 percent. The notes matured on August 15, 2021. The principal and interest on the notes were paid from proceeds of the sale, prior to the maturity
date, of a future series of certificates of participation, notes or other obligations. See Note 10 for additional information.
The trust agreement for the certificates does not require the establishment of a reserve.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
34
Annual Amortization Requirements The annual requirements to amortize all debt related to certificates of participation, revenue obligations, and anticipation notes as of June 30, 2021, including the Revenue Refunding Certificate Anticipation Notes, Series 2018A that currently matures in August 2021, are as follows:
Year Ending June 30,Principal Estimated Interest Total
2022 130,605,000$ 38,331,869$ 168,936,869$
2023 29,805,000 34,371,619 64,176,619
2024 31,140,000 33,041,769 64,181,769
2025 32,655,000 31,517,369 64,172,369
2026 33,985,000 30,194,719 64,179,719
2027-2031 198,870,000 124,620,846 323,490,846
2032-2036 263,540,000 72,253,679 335,793,679
2037-2041 164,315,000 22,128,077 186,443,077
2042-2044 24,705,000 1,641,536 26,346,536
Total 909,620,000$ 388,101,483$ 1,297,721,483$
(5) Pension Benefits
OC San has two defined benefit pension plans for retirees: the plan maintained through and by the
Orange County Employees Retirement System (OCERS) and the Additional Retiree Benefit Account (ARBA) administered directly by OC San.
A summary of pension amounts for OC San’s plans at June 30, 2021 is presented below:
OCERS ARBA Total
Net pension asset - OCERS 68,643,378$ -$ 68,643,378$
Deferred outflows - pensions 49,968,867 4,085,312 54,054,179
Total pension liability - ARBA - 23,320,422 23,320,422
Deferred inflows - pensions 54,864,465 1,616,997 56,481,462
Pension expenses (1,557,338) 1,878,047 320,709
A. Orange County Employees Retirement System (OCERS)
Plan Description: All qualified permanent and probationary employees are eligible to participate in
OC San’s Employee Pension Plan (Plan), which is a cost-sharing multiple employer defined benefit pension plan administered by the Orange County Employees Retirement System (OCERS). OCERS
was established in 1945 under the provisions of the County Employees Retirement Law of 1937 (CERL). The Plan operates under the provisions of the CERL, the California Public Employees’
Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by OCERS’ Board of Retirement. The Plan’s authority to establish and amend the benefit terms are set
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
35
by the CERL and PEPRA and may be amended by the California State Legislature. The Plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code.
Benefits Provided: OCERS provides service retirement, disability, death and survivor benefits to plan members who may be public employees or beneficiaries. The CERL and PEPRA establish
benefit terms. Benefits are based on years of credited service equal to one year of full-time employment. Members of plans B and H with ten years of service credit are entitled to receive a
retirement allowance beginning at age 50; members of plan U with 5 years of service are eligible to receive a retirement allowance at age 52. Members attaining age 70 are eligible to retire regardless
of credited service.
Benefits are determined by plan formula, age, years of service and final average salary (FAS) as
follows:
Plan H Plan B Plan U
Hire Date
After 9/21/79
Prof/Sup*: Before 10/1/10
OCEA*: Before 8/1/11
501*: Before 7/1/11
Prof/Sup: After 10/1/10
OCEA: After 8/1/11
501: After 7/1/11
All: Before 1/1/2013
On or after 1/1/2013
Final Average
Compensation (FAS)Highest 36 months Highest 36 months Highest 36 months
Normal Retirement Age Age 55 Age 57.5 Age 67
Age 70, any years Age 70, any years Age 70, any years
Age 50, 10 years Age 50, 10 years Age 52, 5 years
Benefit percent per year
of service for normal
retirement age
2.5% per year of FAS for
every year of service credit
1.667% per year of FAS for
every year of service credit
2.5% per year of FAS for
every year of service credit
Benefit Adjustments Reduced before age 55 Reduced before age 57.5 Reduced before age 67
FAS Limitation Internal Revenue Code
Section 401(a)(17)
Internal Revenue Code
Section 401(a)(17)
Public Employees Pension
Reform Act (PEPRA): 120%
of Social Security wage base
per year
* Prof/Sup: Professional and Supervisor employee groups, bargaining unit SPMG.
* OCEA: Administrative, Clerical, Engineering, and Technical Services employee groups, bargaining unit OCEA.
* 501: Operations and Maintenance employee groups, bargaining unit International Union of Operating Engineers Local 501.
Service Requirement
Eligibility
A cost of living adjustment is provided to benefit recipients based on changes in the Consumer Price
Index (CPI) up to a maximum of 3% per year. Any increase greater than 3% is banked and may be used in years when the CPI is less than 3%. The increase is established and approved annually by
the Board of Retirement.
The Plan also provides disability and death benefits to eligible members and their beneficiaries,
respectively. For retirees, the death benefit is determined by the retirement benefit option chosen. For all other members, the beneficiary is entitled to benefits based on the member’s years of service
and whether or not the cause of death is service related.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
36
At the December 31, 2020 measurement date, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 548
Inactive employees entitled to but not yet receiving benefits 136
Active employees 618
Total 1,302
Contributions: Participating employers and active members are required by statute to contribute a percentage of covered salary to the Plan. CERL requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and be effective on the July 1 following notice of a change in rate. Funding contributions are determined annually on an actuarial basis as of December 31 by OCERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
Contributions to the Plan from OC San were $8,479,429 for the year ended June 30, 2021.
Contribution rates in effect for the fiscal year ended June 30, 2021 are as follows:
Plan H Plan B Plan U
Employer Contribution Rate, 7/1/20 - 6/30/21 13.24% 11.11% 10.02%
Employee Contribution Rate, 7/1/20 - 6/30/21 (2)6.69-12.79% (1)7.52-13.02% 7.22-14.36%
Paid by Employer for Employee 3.50% 0.00% 0.00%
(1) Net of employer paid portion of 3.5%.
(2) Employee rates are determined by the age of entry into the retirement system.
For the year ended June 30, 2021, the contributions and average employer’s contribution rate as a percentage of covered payroll were as follows:
Plans
Employer
Contributions
Employee (Paid
by Employer)
Contributions
Average
Employer
Contribution
Rate (%)
Plan H 4,874,926 1,274,147 8.52%
Plan B 754,681 - 1.05%
Plan U 2,849,822 - 3.95%
Total 8,479,429$ 1,274,147$
Pension Assets/Liabilities: As of June 30, 2021, OC San reported a net pension asset of $68,643,378 for its proportionate share of OCERS’ net pension liability. The net pension asset was
measured as of December 31, 2020 and the total pension asset used to calculate the net pension asset was determined by an actuarial valuation as of that date. OC San’s proportion of the net
pension asset was based on a projection of OC San’s long-term share of contributions to the pension plan relative to the projected contribution of all participating employers, actuarially determined.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
37
At December 31, 2020, OC San’s proportion of the net pension liability was negative (1.629%), which was a decrease of 0.655% from its proportion measured as of December 31, 2019. The change in OC San’s proportion of the net pension liability during the fiscal year ended June 30, 2021 was caused by contributions and projections noted above.
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions: For the year ended June 30, 2021, OC San recognized pension expense of negative ($1,557,338) for its
proportionate share of the pension expense. At June 30, 2021 OC San reported its share of deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Difference between expected and actual experience 19,679,712$ 2,630,086$
Net difference between projected and actual investment
earnings on pension plan investments - 52,234,379
Changes of assumptions (1) 18,009,943 -
Changes in proportion and differences between employer
contributions and proportionate share of contributions 25,423 -
Employer contributions paid to OCERS subsequent to
the measurement date 12,253,789 -
Total 49,968,867$ 54,864,465$
• adjustments to the mortality tables,
• % in the rate of marriage for male and female members at retirement or pre-retirement death,
• an increase in the Consumer Price Index of 2.75% per year, maximum increase is 3%,
• and a slight increase of .50% in salaries per year.
• retirement assumptions for deferred vested members (age at retirement 59, increase of 4.00%
in reciprocity, and an increase in compensation increases),
Detail for these changes is available in the Segal Actuarial Valuation for December 31, 2020, Section 3.
This report is available on the OCERS website at www.ocers.org.
(1) The monetary effects of changes in actuarial assumptions and method totals $18,009,943 for
deferred outflows and $0 for deferred inflows of resources. These changes include:
The $12,253,789 reported as deferred outflows of resources related to pensions resulting from OC San’s contributions to OCERS subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OCERS pensions will be recognized in pension expense as follows:
Year Ending June 30, Amount
2022 (7,334,143)$
2023 2,995,140
2024 (13,341,404)
2025 (3,164,982)
2026 3,696,002
Total (17,149,387)$
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
38
Actuarial Assumptions and Methods: The total pension liability in the December 31, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Investment rate of return 7.00% of net pension plan investment expenses, including inflation
Discount rate 7.00%
Inflation rate 2.50%
Projected salary increases 4.00% to 11.00%
Cost of living adjustment 2.75% of retirement income
OCERS Economic and Demographic Assumptions: On August 17, 2020, the OCERS Board adopted the following significant changes to the economic and demographic actuarial assumptions, used to establish retirement contribution rates effective July 1, 2021:
Reduced the assumed rate of price inflation from 2.75% to 2.50%.
Adopted the use of Public Retirement Plans Mortality tables (PUB-2010) published by the Society of Actuaries.
Additionally, the OCERS Board adopted a three-year phase-in of the impact to the contribution rates associated with the Unfunded Actuarially Accrued Liability. The cumulative effect of these changes will have the impact of increasing contribution rates for members and plan sponsors.
The mortality assumptions used in the total pension liability at December 31, 2020 were based on the Amount-Weighted Above-Median Mortality Tables (adjusted for OCERS experience), projected generationally with the two-dimensional mortality improvement scale MP-2019, and adjusted separately for healthy and disabled members. The basis for determining the mortality assumptions used were based on the results of the actuarial experience study for the period January 1, 2017 through December 31, 2019.
Further details of the experience study can be found in the OCERS Annual Comprehensive Financial Report, available on their website at www.ocers.org.
Long-Term Expected Real Rate of Return: The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of inflation) are developed for each major asset class. These returns are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation and deducting expected investment expenses.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
39
The target allocation and projected arithmetic real rates of return for each major asset class, after deducting inflation, but before investment expenses, used in the derivation of the long-term expected investment rate of return assumption are summarized in the following table for the calendar year ended December 31, 2020:
Asset Class
Target
Allocation
Long-Term Expected Real
Rate of Return (Arithmetic)
Large Cap Equity 23.10% 5.43%
Small Cap Equity 1.90% 6.21%
International Developed Equity 13.00% 6.67%
Emerging Markets Equity 9.00% 8.58%
Core Bonds 9.00% 1.10%
High Yield Bonds 1.50% 2.91%
TIPS 2.00% 0.65%
Emerging Market Debt 2.00% 3.25%
Corporate Credit 1.00% 0.53%
Long Duration Fixed Income 2.50% 1.44%
Real Estate 3.01% 4.42%
Private Equity 13.00% 9.41%
Value Added Real Estate 3.01% 7.42%
Opportunistic Real Estate 0.98% 10.18%
Energy 2.00% 9.68%
Infrastructure (Core Private) 1.50% 5.08%
Infrastructure (Non-Core Private) 1.50% 8.92%
CTA - Trend Following 2.50% 2.38%
Global Macro 2.50% 2.13%
Private Credit 2.50% 5.47%
Alternative Risk Premia 2.50% 2.50%
Total 100.00%
Discount Rate: The discount rate used to measure the total pension liability was 7.00% for the year ended December 31, 2020. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the actuarially determined contribution rates. For this purpose, only employer contributions that are intended to fund benefits for current plan members and their beneficiaries are included. Projected employer contributions that are intended to fund the service costs for future plan members and their beneficiaries, as well as projected contributions from future plan members, are not included. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments for current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability as of December 31, 2020.
Sensitivity of the Proportionate Share of Net Pension Liability to Changes in the Discount Rate: The following table represents OC San’s proportionate share of the net pension liability calculated using the discount rate of 7.00%, as well as what OC San’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.00%) or 1 percentage point higher (8.00%) than the current rate:
Net Pension Asset (Liability)
December 31, 2020 $ (45,329,114) $ 68,643,378 $ 161,548,454
(6.00%) (7.00%) (8.00%)
1% Decrease Current Discount Rate 1% Increase
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
40
Pension Plan Fiduciary Net Position: Detailed information about OCERS’ fiduciary net position is available in a separately issued OCERS Annual Comprehensive Financial Report. That report may be obtained from OCERS at 2223 Wellington Avenue, Santa Ana, California 92708 or at their web site (www.ocers.org).
B. Additional Retiree Benefit Account (ARBA)
Plan Description: The OC San ARBA plan is a single-employer defined benefit plan which was
administered by OCERS until February 29, 2008, when OC San began direct administration. This benefit was established by the OC San Board of Directors on October 25, 1992. It provides a monthly
payment to retirees towards the premium costs of health insurance for the retiree and eligible dependents. The retiree is not required to use this amount for health insurance premium or to remain
on the OC San medical plan. The plan is currently paying benefits to 412 retirees. The ARBA plan is not subject to the reporting requirements of GASB 68 and 71 because a trust has not been set up
for the plan. However, GASB 73 has been implemented for the ARBA plan in the fiscal year ended June 30, 2016. The plan is a funded on a pay-as-you-go plan from general funds and is administered
by OC San. Stand-alone financial statements are not issued for the plan.
Benefits Provided: Employees who retire receive $10 per month for every year of service up to a
maximum of 25 years, or $250 per month. This amount is independent of salary and is fixed at retirement. Because OC San cannot ensure the use of the benefit for payment of eligible health insurance expenses, the benefit is taxable to the retiree. Survivor benefits are provided in the event that a retiree pre-deceases his/her spouse. For retirees hired prior to July 1, 1988, OC San provides
health insurance coverage for 2½ months per year of service (see Note 6 – Other Post-Employment Benefits). ARBA benefits begin immediately after this benefit ends. For those hired on or after July
1, 1988, ARBA benefits begin immediately upon retirement and continue for life. Employees hired into the OCEA bargaining group after August 1, 2011 are ineligible for this benefit.
Benefits are determined by hire date, bargaining unit and years of service as follows:
Hire date All: Prior to 7/1/88
All: After 7/1/88
OCEA*: Before 8/1/11
Benefit amount per
year of service for
normal retirement age
$10 per month x years of service
up to a maximum of 25 years
$10 per month x years of service
up to a maximum of 25 years
Service requirement
eligibility
Age 50 or over with 10 or more years
Any age with 30 or more years
Age 70 or over, any years
Age 50 or over with 10 or more years
Any age with 30 or more years
Age 70 or over, any years
Benefit payments Monthly for life Monthly for life
Benefit schedule Immediately after retiree health
insurance coverage ends Immediately upon retirement
* OCEA: Administrative, Clerical, Engineering, and Technical Services employee groups, bargaining unit OCEA. No cost of living adjustment is provided to benefit recipients.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
41
At June 30, 2021, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 412
Inactive employees entitled to but not yet receiving benefits 30
Active employees 560
Total 1,002
Contributions: There are no employee contributions for this plan; OC San covers 100% of the cost.
OC San utilizes a pay-as-you-go method for funding the plan. Contributions to the plan from OC San were $967,970 for the year ended June 30, 2021.
Pension Liabilities: As of June 30, 2021, OC San reported a total pension liability of $23,320,422 for its ARBA plan. The total pension liability was determined by an actuarial valuation as of July 1,
2019. OC San funds benefits on a pay-as-you-go basis and elected not to pre-fund its pension obligation. As a result, there are no plan assets and the total pension liability is equal to the net
pension liability. Standard actuarial update procedures were used to project/discount from July 1, 2019 to the measurement date of June 30, 2021.
The actuarial valuation performed as of July 1, 2019, used the entry age, level percent of pay cost method. This method represents the present value of all benefits accrued through the valuation date
assuming that each employee’s liability is expensed from hire date until retirement date as a level percentage of pay.
The following table shows the changes in the total pension liability:
Total Pension Liability
Increase (Decrease)
Beginning balance at July 1, 2020 21,434,655$
Changes in the year:
Service cost 703,496
Interest on total pension liability 530,599
Changes of assumptions 1,619,642
Benefit payments (967,970)
Net changes 1,885,767
Ending balance at June 30, 2021 23,320,422$
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
42
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension: For the year ended June 30, 2021, OC San recognized pension expense of $1,878,047 for its ARBA plan. At June 30, 2021, OC San reported its share of deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Difference between expected and actual experience 744,258$ 1,616,997$
Changes of assumptions (1) 3,341,054 -
Total 4,085,312$ 1,616,997$
(1) The monetary effects of changes in actuarial assumptions and method totals $3,341,054. These changes
include passage of time, a change in the discount rate from 2.45% to 1.92%, change in actuarial system,
census and other losses.
Amounts reported as deferred outflows of resources related to ARBA pensions will be recognized in pension expense as follows:
Year Ending June 30, Amount
2022 643,952$
2023 643,952
2024 529,448
2025 321,196
2026 182,525
2027 147,242
Total 2,468,315$
Actuarial Assumptions and Methods: The total pension liability in the July 1, 2019 actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Investment rate of return 3.75% per annum
Discount rate 3.13% per annum as of July 1, 2019 (valuation date)
1.92% per annum as of June 30, 2021 (measurement date)
Inflation rate 3.00% per annum
Projected salary increases 3.00% per annum (for service cost only; benefits not pay-related)
The mortality assumptions used in the total pension liability at July 1, 2019 were based on the RP-
2014 Employee Mortality and Health Annuitant Mortality Tables for Males or Females, as appropriate, without projection.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
43
Discount Rate: The discount rate used to measure the total pension liability was 3.13% as of the valuation date, July 1, 2019, and 1.92% as of the measurement date, June 30, 2021. Because there are no assets held in a trust that meets GASB 68 or 71, the discount rate is based on the 20-year, tax exempt general obligation municipal bonds with an average rating of AA or higher.
Sensitivity of the Total Pension Liability to Changes in the Discount Rate: The following table represents the total pension liability calculated using the discount rate of 1.92% as of the
measurement date, as well as what total pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (0.92%) or 1 percentage point higher (2.92%) than the
current rate:
Total Pension Liability
June 30, 2021 $ 26,891,050 $ 23,320,422 $ 20,398,927
(0.92%) (1.92%) (2.92%)
1% Decrease Current Discount Rate 1% Increase
(6) Other Post-Employment Benefits (OPEB)
Plan Description: The post-employment medical benefits plan is a single-employer defined benefit plan administered by OC San. This plan was established and may be modified only by action of the
OC San Board of Directors. Stand-alone financial statements are not issued.
Benefits Provided: OC San offers medical insurance to active and retired employees, as well as their qualified dependents. All retirees may choose coverage in an OC San medical plan, with retirees paying the full premium. However, for employees hired prior to July 1, 1988, medical benefits begin immediately at retirement with OC San paying 2.5 months of premium for each year of continuous service toward the cost of coverage under OC San medical plans. At the termination of
this period the retiree may elect to continue coverage at his/her own expense. For the fiscal year ended June 30, 2021, premiums ranged between $227 and $4,078 per month, depending on the plan and number of dependents covered.
At June 30, 2021, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits (includes
118 paying premiums and 30 with premiums paid by OC San) 148
Inactive employees entitled to but not yet receiving benefits 0
Active employees (includes 3 eligible for premiums paid by OC San) 613
Total 761
Contributions: There are no employee contributions to this plan; OC San covers 100% of the cost for qualifying employees as stated above. Retirees opting to remain with the plan after employment pay 100% of the premium cost, except for those for whom OC San pays for a period (see above). OC San utilizes a pay-as-you-go method for funding the plan. Contributions to the plan from OC San were $572,692 and the estimated implicit subsidy was $670,565, resulting in total payments of $1,243,257, and retirees contributed $1,202,221 for the year ended June 30, 2021.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
44
OPEB Liabilities: As of June 30, 2021, OC San reported total OPEB liability of $1,332,528 for its post-employment retiree medical benefits plan. The total OPEB liability was determined by an actuarial valuation as of July 1, 2019. OC San funds benefits on a pay-as-you-go basis and elected not to pre-fund its OPEB obligation. As a result, there are no plan assets and the total OPEB liability
is equal to the net OPEB liability. Standard actuarial update procedures were used to project/discount from July 1, 2019 to the measurement date of June 30, 2021.
The actuarial valuation performed as of July 1, 2019 used the entry age, level percent of pay cost method. This method represents the present value of benefits accrued through the valuation date,
assuming that each employee’s liability is expensed from hire date until retirement date as a level percentage of pay.
The following table shows the changes in the total OPEB liability:
Total OPEB Liability
Increase (Decrease)
2,483,644$
Changes in the year:
Service cost 5,238
Interest on total OPEB liability 45,840
Difference between expected and actual experience -
Changes of assumptions 41,063
Benefit payments (1)(1,243,257)
Net changes (1,151,116)
1,332,528$
(1) As part of the July 1, 2019 actuarial valuation report, Demsey, Filliger & Associates
prepared a projection of the expected annual cost to the District to pay OPEB benefits.
Ending balance at June 30, 2021
Beginning balance at July 1, 2020
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB: For the year ended June 30, 2021, OC San recognized OPEB expense of $92,141 for its post-employment retiree medical benefits plan. At June 30, 2021 OC San reported $0 for its share of deferred outflows/inflows of resources related to OPEB.
Actuarial Assumptions and Methods: The total OPEB liability in the July 1, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Investment rate of return 4.00% per annum
Discount rate 1.92% per annum
Inflation rate 3.00% per annum
Healthcare cost trend rate 5.80% for 2021, 5.70% for 2022, 5.60% for 2023; and decreasing
0.10% per year to an ultimate rate of 5.00% for 2029 and later years
Projected salary increases 3.00% per annum
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
45
The mortality assumptions used in the total OPEB liability at July 1, 2019 were based on the RP-2014 Employee Mortality Table for Males or Females, as appropriate, without projection for pre-retirement mortality rates and RP-2014 Health Annuitant Mortality Table for Males or Females, as
appropriate, without projection for post-retirement mortality rates.
Actuarial assumptions used in the July 1, 2019 valuation were based on a review of plan experience
during the period July 1, 2017 through June 30, 2019.
Discount Rate: The discount rate used to measure the total OPEB liability was 3.13% as of the
valuation date, July 1, 2019, and 1.92% as of the measurement date, June 30, 2021. Because there are no assets held in a trust, for GASB 75 reporting purposes, the discount rate is based on a yield
or index rate for 20-year, tax exempt general obligation municipal bonds with an average rating of AA/Aa or higher.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate: The following table represents the total OPEB liability calculated using the discount rate of 1.92% as of the measurement
date, as well as what total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (0.92%) or 1 percentage point higher (2.92%) than the current rate:
Total OPEB Liability
June 30, 2021 $ 1,412,340 $ 1,332,528 $ 1,255,758
(0.92%) (1.92%) (2.92%)
1% Decrease Current Discount Rate 1% Increase
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates: The following table represents the total OPEB liability calculated using the healthcare cost trend rate of 5.80%
decreasing to 5.00% as of the measurement date, as well as what total OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1 percentage point lower (4.80%
decreasing to 4.00%) or 1 percentage point higher (6.80% decreasing to 6.00%) than the current rate:
Total OPEB Liability
June 30, 2021 $ 1,223,328 $ 1,332,528 $ 1,447,119
(4.80% decreasing
to 4.00%, 3.00% at
Medicare ages)
(5.80% decreasing
to 5.00%, 4.00% at
Medicare ages)
(6.80% decreasing
to 6.00%, 5.00% at
Medicare ages)
1% Decrease Current Trend Rate 1% Increase
(7) Transactions with Irvine Ranch Water District – Revenue Area No. 14
Formation of Revenue Area No. 14 & Excess Purchase Price Over Book Value of Acquired Assets On July 1, 1985, Revenue Area No. 14 was formed as an independent special district as a result of a negotiated agreement between OC San and IRWD. At the time of Revenue Area 14’s creation, OC San consisted of eight independent special districts (see Note 1 – Reporting Entity). The eight existing districts sold a portion of the joint treatment facilities and land to the newly created district and recorded capacity rights revenue at the time of the sale.
In accordance with the negotiated agreement between OC San and IRWD, IRWD paid OC San $34,532,000 for an initial 15 million gallons per day capacity in OC San’s joint treatment facilities (with an ultimate collection capacity of 32 million gallons per day) and for a pro-rata interest in real
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
46
property (based on flow of 32 million gallons per day). The book value of the assets acquired was determined to be $14,553,000 as of June 30, 1986; these assets were recorded at book value in Revenue Area 14. The excess of the purchase price over the assets' book value was $19,979,000 and was recorded as an intangible asset in Revenue Area 14. The excess of the purchase price over
the assets’ book value was amortized over useful lives of the original assets acquired. The excess of purchase price over the assets' book value was fully amortized as of June 30, 2017.
Annual Transactions IRWD entered into a separate agreement with Revenue Area 14 on January 1, 1986 whereby IRWD
agreed to fund quarterly payments of Revenue Area 14's proportionate share of OC San's joint capital outlay revolving fund budget requirements and certain capital improvements during the term of the agreement, for which contributions of $4,251,823 were recorded as contribution from other government during the fiscal year ended June 30, 2021. IRWD also agreed to fund the annual
integration adjustment of Revenue Area 14’s equity share in OC San’s Joint Works Treatment Facilities based on the flows discharged to OC San. Integration contributions credited to IRWD of
$1,289,514 from Revenue Area 14 were recognized and reported as contributions to other governments during the fiscal year ended June 30, 2021. These contributions received from or
credited to IRWD for their agreed-upon share of capital assets and equity share in OC San’s Joint Works Treatment Facilities are calculated as prescribed in the agreements.
In addition, a separate agreement for transfer of IRWD’s wastewater solids residuals to OC San was entered on April 28, 2010. IRWD agreed to pay OC San for an interim solids handling charge which
includes annual capital and quarterly operating expense components designed to compensate OC San for IRWD’s share of the cost of operating and maintaining the existing facilities for the treatment
of solids. As a result, $2,875,343 in annual solids capital handling charges were reported as operating revenue in Consolidated Revenue Area, and $6,521,763 in quarterly solids operating and
maintenance charges were reported as operating revenue in Revenue Area No. 14 during the fiscal year ended June 30, 2021.
Any amounts credited to IRWD are not refunded in cash but are held as a credit to satisfy future contributions required of IRWD. Amounts owed from IRWD are invoiced on a quarterly or annual
basis. As a result, a balance of $28,662,360 was reported in due to other governmental agency as of June 30, 2021.
Annual Cash Reserve Requirement The cash reserve contribution requirement from IRWD at June 30, 2021; in accordance with
Amendment No. 2 to the Agreement between IRWD and OC San Acquiring Ownership Interests, Assigning Rights, and Establishing Obligations; is $14.2 million. This cash reserve requirement is
recognized as a liability to IRWD.
(8) Commitments and Contingencies
Pollution Remediation: An Underground Storage Tank (UST) at Plant No. 1 failed the pressure test to ensure its tank integrity. As a result of the test failure, OC San voluntarily took this UST out of
service and tested the immediate surrounding area and determined that both gasoline and diesel were present. During the fiscal year ended June 30, 2017, OC San completed an analysis of
remediation alternatives resulting in a less costly remediation plan for the contaminated soil than the plan developed during the previous fiscal year. The new remediation plan received approval from
the Orange County Health Care Agency, and based upon their feedback a final design was completed. The new remediation plan called for removal and disposal of approximately 2,200 tons
of contaminated soil, and some limited groundwater treatment. This work was issued a construction
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
47
contract in March 2019 and has been substantially completed as of June 30, 2021. As of June 30, 2021, actual costs of $1,202,568 were incurred. Project closeout occurred in July 2021 and no remaining costs are estimated. This does not include operating costs for post-remediation monitoring over a five-year period.
Construction Commitments: OC San has active construction projects to add additional capacity, improve treatment, or replace/rehabilitate existing assets. At June 30, 2021, the outstanding
commitments with contractors totaled $307,721,820.
Litigation: Certain claims involving disputed construction costs have arisen in the ordinary course of
business. Additionally, OC San is a defendant in lawsuits. Although the outcome of these matters is not presently determinable, management does not expect that the resolution of these matters will
have a material adverse impact on the financial condition of OC San.
(9) COVID-19 Pandemic
The spread of the novel strain of coronavirus and the disease it causes (now known as “COVID-19”) is having significant negative impacts throughout the world, including in Southern California. The
World Health Organization declared the COVID-19 outbreak to be a pandemic, and states of emergency were declared by the United States, the State of California, and numerous counties
throughout the State, including Orange County of which, comprises the service area of OC San. On March 17, 2020, OC San’s General Manager declared a state of emergency at OC San. The
purposes behind these declarations were to initiate emergency response protocols, coordinate and formalize emergency actions across federal, state and local governmental agencies, and to
proactively prepare for a wider spread of the virus.
OC San is assessing the effects the ongoing COVID-19 outbreak will have on OC San and its business and operations, as well as in the region, including the adverse financial impacts likely to
be experienced by its member agencies. The degree of impact to OC San’s finances and operations is difficult to predict due to the evolving nature of the COVID-19 pandemic, including uncertainties
relating to (i) the ultimate extent of the geographic spread of the virus; (ii) the duration and severity of the outbreak; (iii) the extent of the disruption to or decline in the local and global economies and
financial markets; (iv) the degree to which business closures, increased unemployment, housing foreclosures and/or other economic consequences may reduce water and sewer demands in the
region and OC San's wastewater transactions, or negatively affect future property values in OC San's service area and/or OC San's property tax levy receipts, and reduce OC San's revenues; (v)
the extent to which a protracted disruption in the manufacturing or construction industry may affect supply chains or further delay construction schedules for, or the implementation of, OC San’s capital
improvement programs and projects, or the costs of such programs or projects or OC San’s sewer system operations; and (vi) what additional actions may be taken or required by governmental
authorities to contain and respond to the outbreak and what costs or impacts of such actions may be. The restrictions and limitations instituted related to COVID-19 will likely remain in place for some
period and may increase, that the ongoing economic downturn may continue for many months and an economic recession has been projected as likely to occur, and that the recovery may be
prolonged. As a result, OC San’s finances and operations may be adversely impacted by COVID-19.
ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2021
48
(10) Subsequent Events
On July 29, 2021, OC San issued Series 2021A wastewater refunding revenue obligations (Series
2021A), in the amount of $133,510,000. The obligations were issued to refund a portion of the Series 2011A wastewater refunding revenue obligations (Series 2011A) and Series 2018A revenue refunding certificate anticipation notes (Series 2018A). The debt was issued at a premium of $30,840,308. The total proceeds of $164,236,332 were used to refund $61,575,000 of the
$75,370,000 outstanding Series 2011A obligations and $102,200,000 of the Series 2018A obligations. The interest rate on the Series 2021A obligations is 5.00% with a final maturity date of
February 1, 2036.
ORANGE COUNTY SANITATION DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
49
ORANGE COUNTY SANITATION DISTRICT
Proportionate Share of the Net Pension Liability (Asset)
Orange County Employees Retirement System (OCERS) Pension Plan
Last 10 Fiscal Years (1)
2015 2016 2017 2018 2019 2020 2021
1.13% 0.74% (0.20%) (0.80%) 0.47% (0.97%) (1.63%)
57,418,760$ 42,439,759$ (10,384,508)$ (39,571,100)$ 29,029,147$ (49,446,615)$ (68,643,378)$
58,641,163$ 59,789,927$ 60,000,017$ 62,341,796$ 66,475,479$ 71,395,906$ 73,290,519$
97.92% 70.98% (17.31%) (63.47%) 43.67% (69.26%) (93.66%)
89.61% 92.74% 101.70% 105.96% 95.86% 106.64% 108.50%
(1)
(2)
Proportionate
share of the net
pension liability
(asset)
Proportion of the
net pension liability
(asset)
Fiscal Year Ended June 30,
Covered payroll (2)
Proportionate
share of the net
pension liability
(asset) as a
percentage of
covered payroll
OCERS' fiduciary
net position as a
percentage of the
total pension
liability
The amounts presented were determined as of the measurement date December 31. Data for fiscal years ended June 30, 2012
through 2014 is not available in a comparable format.
Covered payroll represents compensation earnable and pensionable compensation for the measurement period ended
December 31. Only compensation earnable and pensionable compensation that would possibly go into the determination of
retirement benefits are included.
50
ORANGE COUNTY SANITATION DISTRICT
Schedule of District Contributions
Orange County Employees Retirement System (OCERS) Pension Plan
Last 10 Fiscal Years (1)
2015 2016 2017 2018 2019 2020 2021
17,201,569$ 12,222,849$ 7,709,734$ 7,525,655$ 7,769,431$ 8,739,661$ 8,479,429$
(17,201,569) (12,222,849) (7,709,734) (7,525,655) (7,769,431) (8,739,661) (8,479,429)
-$ -$ -$ -$ -$ -$ -$
60,025,942$ 60,595,474$ 62,266,907$ 65,390,144$ 69,101,109$ 69,688,759$ 72,191,190$
28.66% 20.17% 12.38% 11.51% 11.24% 12.54% 11.75%
(1)
(2)
Contributions in
relation to the
contractually
required
contribution
Contractually
required
contribution
Fiscal Year Ended June 30,
Contribution
deficiency (excess)
Covered payroll (2)
Contributions as a
percentage of
covered payroll
The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30, 2012 through
2014 is not available in a comparable format.
Covered payroll represents compensation earnable and pensionable compensation for the fiscal year ended June 30. Only
compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are
included.
51
ORANGE COUNTY SANITATION DISTRICT
Total Pension Liability (3)
Additional Retiree Benefit Account (ARBA)
Last 10 Fiscal Years (1)
2015 2016 2017 2018 2019 2020 2021
16,680,614$ 18,313,122$ 18,467,361$ 20,831,172$ 21,577,464$ 21,434,655$ 23,320,422$
62,139,375$ 62,977,577$ 65,120,945$ 68,126,103$ 71,948,599$ 74,602,862$ 78,413,423$
26.84% 29.08% 28.36% 30.58% 29.99% 28.73% 29.74%
(1)
(2)
(3)
Covered-employee
payroll (2)
Total pension liability
as a percentage of
covered-employee
payroll
The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30, 2012 through
2014 is not available in a comparable format.
This plan is not administered through a trust or equivalent arrangement, thus covered-employee payroll is used. Covered-
employee payroll represents total payroll of employees that are provided benefits through the pension plan for the fiscal year
ended June 30.
There are no assets in a trust compliant with GASB codification P22.101. OCSD funds benefits on a pay-as-you-go basis and
elected not to pre-fund its pension obligation. As a result, there are no plan assets and the total pension liability is equal to the net
pension liability.
Total pension liability
Fiscal Year Ended June 30,
52
ORANGE COUNTY SANITATION DISTRICT
Changes in Total Pension Liability (2)
Additional Retiree Benefit Account (ARBA)
Last 10 Fiscal Years (1)
2016 2017 2018 2019 2020 2021
16,680,614$ 18,313,122$ 18,467,361$ 20,831,172$ 21,577,464$ 21,434,655$
Changes in the year:
Service cost 270,223 278,330 553,795 570,409 576,661 703,496
Interest on total pension
liability 626,386 593,711 649,192 663,852 608,775 530,599
Difference between
expected and actual
experience - - - - (2,263,797) -
Changes of assumptions 1,230,327 (70,952) 1,889,274 328,481 1,823,672 1,619,642
Benefit payments (494,428) (646,850) (728,450) (816,450) (888,120) (967,970)
Net changes 1,632,508 154,239 2,363,811 746,292 (142,809) 1,885,767
Ending balance at June 30 18,313,122$ 18,467,361$ 20,831,172$ 21,577,464$ 21,434,655$ 23,320,422$
(1)
(2)
Beginning balance at July 1
Fiscal Year Ended June 30,
The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30, 2012
through 2015 is not available in a comparable format.
OC San funds benefits on a pay-as-you-go basis and elected not to pre-fund its pension obligation. As a result, there are no
plan assets and the total pension liability is equal to the net pension liability.
53
ORANGE COUNTY SANITATION DISTRICT
Total OPEB Liability (3)
Post-Employment Medical Benefits Plan
Last 10 Fiscal Years (1)
2017 2018 2019 2020 2021
6,398,694$ 5,025,395$ 4,013,291$ 2,483,644$ 1,332,528$
65,120,945$ 68,126,103$ 71,948,599$ 74,602,862$ 78,413,423$
9.83% 7.38% 5.58% 3.33% 1.70%
(1)
(2)
(3)
Covered-employee payroll (2)
Total OPEB liability as a
percentage of covered-employee
payroll
The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30, 2012
through 2016 is not available in a comparable format.
This plan is not administered through a trust or equivalent arrangement, thus covered-employee payroll is used. Covered-
employee payroll represents total payroll of employees that are provided benefits through the OPEB plan for the fiscal
year ended June 30.
There are no assets in a trust compliant with GASB codification P52.101. OC San funds benefits on a pay-as-you-go
basis and elected not to pre-fund its OPEB obligation. As a result, there are no plan assets and the total OPEB liability is
equal to the net OPEB liability.
Total OPEB liability
Fiscal Year Ended June 30,
54
ORANGE COUNTY SANITATION DISTRICT
Changes in Total OPEB Liability (3)
Post-Employment Medical Benefits Plan
Last 10 Fiscal Years (1)
2018 2019 2020 2021
Beginning balance at July 1 6,398,694$ 5,025,395$ 4,013,291$ 2,483,644$
Changes in the year:
Service cost 18,182 16,489 4,334 5,238
Interest on total OPEB liability 177,395 159,195 98,047 45,840
Difference between expected and
actual experience - - (115,924) -
Changes of assumptions (95,279) 78,935 88,289 41,063
Benefit payments (2) (1,473,597) (1,266,723) (1,604,393) (1,243,257)
Net changes (1,373,299) (1,012,104) (1,529,647) (1,151,116)
Ending balance at June 30 5,025,395$ 4,013,291$ 2,483,644$ 1,332,528$
(1)
(2) Benefit payments include implicit subsidy associated with benefits paid.
(3)
Fiscal Year Ended June 30,
The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30, 2012
through 2017 is not available in a comparable format.
OC San funds benefits on a pay-as-you-go basis and elected not to pre-fund its OPEB obligation. As a result, there are
no plan assets and the total OPEB liability is equal to the net OPEB liability.
55
(THIS PAGE INTENTIONALLY LEFT BLANK)
56
ORANGE COUNTY SANITATION DISTRICT
SUPPLEMENTARY INFORMATION
57
ORANGE COUNTY SANITATION DISTRICT
Combining Area Schedule of Net Position
June 30, 2021
Revenue Consolidated
Area No. 14 Revenue Area Totals
Current assets:
Cash and cash equivalents 2,892,239$ 94,043,126$ 96,935,365$
Investments 25,770,121 837,933,202 863,703,323
Accounts receivable, net of allowance
for uncollectibles $424,460 - 22,860,292 22,860,292
Accrued interest receivable - 3,097,236 3,097,236
Connection fees receivable - 657,904 657,904
Property tax receivable - 1,762,822 1,762,822
Inventories - 8,452,587 8,452,587
Prepaid expenses - 2,534,433 2,534,433
Total current assets 28,662,360 971,341,602 1,000,003,962
Noncurrent assets:
Restricted:
Cash and cash equivalents held by fiscal agents - 120 120
Unrestricted:
Non-depreciable capital assets 12,188,813 446,691,854 458,880,667
Depreciable capital assets, net of accumulated depreciation 81,424,260 2,167,432,314 2,248,856,574
Other noncurrent assets, net - 10,344 10,344
Net pension asset - OCERS - 68,643,378 68,643,378
Total noncurrent assets 93,613,073 2,682,778,010 2,776,391,083
Total assets 122,275,433 3,654,119,612 3,776,395,045
Deferred outflows of resources:
Deferred charges on defeasances - 21,716,099 21,716,099
Deferred outflows related to pensions - 54,054,179 54,054,179
Total deferred outflows of resources - 75,770,278 75,770,278
Total assets and deferred outflows of resources 122,275,433 3,729,889,890 3,852,165,323
Current liabilities:
Accounts payable - 18,955,037 18,955,037
Accrued expenses - 10,098,325 10,098,325
Retentions payable - 8,028,332 8,028,332
Interest payable - 16,943,800 16,943,800
Due to other governmental agency 28,662,360 - 28,662,360
Current portion of long-term obligations - 45,597,991 45,597,991
Total current liabilities 28,662,360 99,623,485 128,285,845
Noncurrent liabilities:
Noncurrent portion of long-term obligations - 932,362,755 932,362,755
Total OPEB liability - 1,332,528 1,332,528
Total pension liability - ARBA - 23,320,422 23,320,422
Total noncurrent liabilities - 957,015,705 957,015,705
Total liabilities 28,662,360 1,056,639,190 1,085,301,550
Deferred inflows of resources:
Deferred inflows related to pensions - 56,481,462 56,481,462
Total liabilities and deferred inflows of resources 28,662,360 1,113,120,652 1,141,783,012
Net position:
Net investment in capital assets:
Collection system 13,471,250 540,599,481 554,070,731
Treatment and disposal land 2,234,537 51,505,130 53,739,667
Treatment and disposal system 77,907,286 2,022,019,558 2,099,926,844
Capital-related liabilities - (967,635,356) (967,635,356)
Subtotal 93,613,073 1,646,488,813 1,740,101,886
Unrestricted - 970,280,425 970,280,425
Total net position 93,613,073$ 2,616,769,238$ 2,710,382,311$
58
ORANGE COUNTY SANITATION DISTRICT
Combining Area Schedule of Revenues, Expenses, and Change in Net Position
For the Year Ended June 30, 2021
Revenue Consolidated
Area No. 14 Revenue Area Totals
Operating revenues:
Service charges 8,478,416$ 327,090,832$ 335,569,248$
Permit and inspection fees 8,881 1,122,256 1,131,137
Total operating revenues 8,487,297 328,213,088 336,700,385
Operating expenses other than depreciation
and amortization:
Salaries and benefits 3,314,923 71,457,504 74,772,427
Utilities 256,966 9,532,521 9,789,487
Supplies, repairs and maintenance 1,394,879 46,149,705 47,544,584
Contractual services 6,979,347 15,673,824 22,653,171
Feasibility studies 116,987 5,586,626 5,703,613
Other 295,054 7,259,826 7,554,880
Total operating expenses other than
depreciation and amortization 12,358,156 155,660,006 168,018,162
Operating income (loss) before
depreciation and amortization (3,870,859) 172,553,082 168,682,223
Depreciation and amortization 4,234,177 112,218,007 116,452,184
Operating income (loss) (8,105,036) 60,335,075 52,230,039
Non-operating revenues:
Property taxes 3,401,325 106,844,105 110,245,430
Investment and interest income 54,962 1,639,293 1,694,255
Contributions from other governments 4,544,544 16,152,900 20,697,444
Other 119,002 6,748,042 6,867,044
Total non-operating revenues 8,119,833 131,384,340 139,504,173
Non-operating expenses:
Interest - 34,836,870 34,836,870
Contributions to other governments 1,289,514 - 1,289,514
Other 689 62,040 62,729
Loss on disposal of assets 52,426 1,667,023 1,719,449
Total non-operating expenses 1,342,629 36,565,933 37,908,562
Income (loss) before capital contributions (1,327,832) 155,153,482 153,825,650
Capital contributions:
Capital facilities capacity charges - 17,546,570 17,546,570
Change in net position (1,327,832) 172,700,052 171,372,220
Total net position - beginning 94,940,905 2,444,069,186 2,539,010,091
Total net position - ending 93,613,073$ 2,616,769,238$ 2,710,382,311$
59
ORANGE COUNTY SANITATION DISTRICT
Combining Area Schedule of Cash Flows
For the Year Ended June 30, 2021
Revenue Consolidated
Area No. 14 Revenue Area Eliminations Totals
Cash flows from operating activities:
Receipts from customers and users 2,535,837$ 320,818,188$ -$ 323,354,025$
Payments to employees (3,314,923) (84,209,874) - (87,524,797)
Payments to suppliers (9,043,233) (90,697,909) - (99,741,142)
Net cash provided by (used in) operating activities (9,822,319) 145,910,405 - 136,088,086
Cash flows from noncapital financing activities:
Proceeds from property taxes 3,401,325 106,922,490 - 110,323,815
Receipts (payments) for other activities 121,850 6,686,002 - 6,807,852
Net cash provided by noncapital financing activities 3,523,175 113,608,492 - 117,131,667
Cash flows from capital and related financing activities:
Capital facilities capacity charges - 21,164,963 - 21,164,963
Additions to capital assets (4,251,822) (139,709,388) 4,251,822 (139,709,388)
Disposal of capital assets 1,289,514 - (1,289,514) -
Interest paid - (42,698,973) - (42,698,973)
Principal payments on debt obligations - (30,430,000) - (30,430,000)
Contributions from (to) other governments 3,255,030 16,152,900 (2,962,308) 16,445,622
Net cash provided by (used in) capital and related financing activities 292,722 (175,520,498) - (175,227,776)
Cash flows from investing activities:
Proceeds from the sale of investments 21,415,219 376,903,198 - 398,318,417
Purchases of investments (17,160,073) (482,996,401) - (500,156,474)
Interest received 455,716 13,756,348 - 14,212,064
Net cash provided by (used in) investing activities 4,710,862 (92,336,855) - (87,625,993)
Net decrease in cash and cash equivalents (1,295,560) (8,338,456) - (9,634,016)
Cash and cash equivalents, beginning of year 4,187,799 102,381,702 - 106,569,501
Cash and cash equivalents, end of year 2,892,239$ 94,043,246$ -$ 96,935,485$
Reconciliation of operating income (loss) to net cash provided
by (used in) operating activities:
Operating income (loss)(8,105,036)$ 60,335,075$ -$ 52,230,039$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization 4,234,177 112,218,007 - 116,452,184
Bad debt expense (net recoveries)- 119,841 - 119,841
(Increase)/decrease in operating assets:
Accounts receivable - (7,394,900) - (7,394,900)
Inventories - (1,510,474) - (1,510,474)
Prepaid expenses - (61,015) - (61,015)
Increase/(decrease) in operating liabilities:
Accounts payable - (2,363,774) - (2,363,774)
Accrued expenses - (6,427,424) - (6,427,424)
Due to other governmental agency (5,951,460) - - (5,951,460)
Net pension/OPEB liabilities - (11,145,108) - (11,145,108)
Compensated absences - 1,548,001 - 1,548,001
Claims and judgments - 592,176 - 592,176
Net cash provided by (used in) operating activities (9,822,319)$ 145,910,405$ -$ 136,088,086$
Noncash activities:
Unrealized gain (loss) on the fair value of investments (400,754)$ (11,952,854)$ (12,353,608)$
Capital assets acquired through accounts payable - 9,129,315 9,129,315
Capital facilities capacity charges acquired - (3,618,393)(3,618,393)
60
ORANGE COUNTY SANITATION DISTRICT
STATISTICAL SECTION
Contents Pages
Financial Position and Trends
62 - 66
Revenue Capacity
67 - 69
Debt Capacity
70 - 72
Operating Information
73 - 76
Demographic and Economic Factors
77 - 80
This part of the Annual Comprehensive Financial Report of the Orange County Sanitation District (OC
San) presents detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about OC San's overall
financial health.
These schedules contain information to help the reader assess OC San's most
significant revenue source of sewer service fees.
These schedules offer demographic information to help the reader understand the
environment within which OC San's financial activities take place.
These schedules contain current and trend information to help the reader understand
OC San's financial position and how OC San's financial performance and well-being
have changed over time.
These schedules contain data to help the reader understand how the information in OC
San's financial report relates to the services it provides and the activities it performs.
These schedules present information to help the reader assess the affordability of OC
San's current levels of outstanding debt and OC San's ability to issue additional debt in
the future. All of OC San's debt is recorded in a proprietary fund; consequently, many of
the schedules which are applicable to governmental funds are not presented.
61
ORANGE COUNTY SANITATION DISTRICT
Net Position by Component
(Dollars in Thousands)
Last Ten Fiscal Years
Fiscal Year
2011-12 1,125,966$ 471,652$ 1,597,618$ (1)
2012-13 1,180,298 520,427 1,700,725
2013-14 1,204,706 617,589 1,822,295
2014-15 1,327,384 434,460 1,761,844 (2)
2015-16 1,429,269 489,303 1,918,572 (3)
2016-17 1,504,898 536,327 2,041,225
2017-18 1,568,118 626,671 2,194,789 (4)
2018-19 1,647,723 712,779 2,360,502
2019-20 1,678,041 860,969 2,539,010
2020-21 1,740,102 970,280 2,710,382
Notes
(2) Beginning net position restated due to implementation of GASB 68.
(3) Beginning net position restated due to implementation of GASB 73.
(4) Beginning net position restated due to implementation of GASB 75.
Source: Orange County Sanitation District's Financial Management Division.
Total Net Position
Net Investment in
Capital Assets Unrestricted
(1) Beginning net position restated due to implementation of GASB 65.
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Net Investment in Capital Assets Unrestricted
62
□ □
ORANGE COUNTY SANITATION DISTRICT
Revenues and Gross Capital Contributions by Source
(Dollars in Thousands)
Last Ten Fiscal Years
Permit &Total
Fiscal Service Total Property Non- Capital
Year Charges Fees Operating Taxes Interest Other Operating Contributions
2011-12 259,491$ 1,030$ 260,521$ 67,882$ 15,747$ 8,486$ 92,115$ 8,936$
2012-13 303,400 1,176 304,576 79,240 (3,913) 3,781 79,108 12,797
2013-14 300,611 848 301,459 74,944 6,498 12,595 94,037 14,093
2014-15 301,548 902 302,450 79,835 4,806 9,996 94,637 17,656
2015-16 314,477 951 315,428 84,407 9,183 14,658 108,248 17,974
2016-17 312,237 1,045 313,282 88,284 3,081 27,146 118,511 16,351
2017-18 316,329 1,170 317,499 94,188 3,230 7,611 105,029 18,077
2018-19 317,291 1,199 318,490 99,534 29,102 29,962 158,598 21,032
2019-20 339,895 1,169 341,064 104,492 33,669 13,172 151,333 22,593
2020-21 335,569 1,131 336,700 110,245 1,694 27,565 139,504 17,547
Source: Orange County Sanitation District's Financial Management Division.
Non-Operating RevenueOperating Revenue
Inspection
$0
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
$225,000
$250,000
$275,000
$300,000
$325,000
$350,000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Operating Revenue Non-Operating Revenue Capital Contributions
63
□ □ □
ORANGE COUNTY SANITATION DISTRICT
Expenses by Type
(Dollars in Thousands)
Last Ten Fiscal Years
Operating Expense Non-Operating Expense
Fiscal
Year
Salaries &
Benefits Utilities
Maint &
Other
Depr &
Amort
Total
Operating
Interest
Expense Other
Total Non-
Operating
2011-12 75,642$ 7,405$ 89,272$ 56,051$ 228,370$ 28,700$ 8,433$ 37,133$
2012-13 76,878 6,403 66,536 63,907 213,724 42,315 37,335 79,650
2013-14 79,179 6,381 60,887 99,805 246,252 40,450 1,317 41,767
2014-15 79,657 7,246 62,323 94,186 243,412 34,112 3,168 37,280
2015-16 75,576 7,246 70,679 90,502 244,003 27,597 6,482 34,079
2016-17 74,291 6,119 69,843 96,320 246,573 25,648 53,270 78,918
2017-18 67,418 7,298 70,840 97,399 242,955 35,011 1,483 36,494
2018-19 85,506 7,733 73,347 102,239 268,825 34,466 29,116 63,582
2019-20 82,917 8,622 76,794 113,888 282,221 33,833 20,428 54,261
2020-21 74,772 9,789 83,457 116,452 284,470 34,837 3,072 37,909
Source: Orange County Sanitation District's Financial Management Division.
$0
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
$225,000
$250,000
$275,000
$300,000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Operating Expense Non-Operating Expense
64
□ □
ORANGE COUNTY SANITATION DISTRICT
Change in Net Position
(Dollars in Thousands)
Last Ten Fiscal Years
Fiscal Total Total
Year
2011-12 361,572$ 265,503$ 96,069$ 1,501,549$ (1)1,597,618$
2012-13 396,481 293,374 103,107 1,597,618 1,700,725
2013-14 409,589 288,019 121,570 1,700,725 1,822,295
2014-15 414,743 280,692 134,051 1,627,793 (2)1,761,844
2015-16 441,650 278,082 163,568 1,755,004 (3)1,918,572
2016-17 448,144 325,491 122,653 1,918,572 2,041,225
2017-18 440,605 279,449 161,156 2,033,633 (4)2,194,789
2018-19 498,120 332,407 165,713 2,194,789 2,360,502
2019-20 514,990 336,482 178,508 2,360,502 2,539,010
2020-21 493,751 322,379 171,372 2,539,010 2,710,382
Notes
(2) Beginning net position restated due to implementation of GASB 68.
(3) Beginning net position restated due to implementation of GASB 73.
(4) Beginning net position restated due to implementation of GASB 75.
Source: Orange County Sanitation District's Financial Management Division.
Change in Beginning Ending
(1) Beginning net position restated due to implementation of GASB 65.
Net PositionRevenues Expenses Net Position Net Position
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Ending Net Position by Fiscal Year
65
ORANGE COUNTY SANITATION DISTRICT
Cash and Investment Reserve Balances
(Dollars in Millions)
Last Ten Fiscal Years
Fiscal Year Total
2011-12 196$ 57$ 186$ 138$ 577$
2012-13 174 57 234 135 600
2013-14 189 57 296 131 673
2014-15 177 57 194 129 557
2015-16 181 57 190 117 545
2016-17 174 57 173 107 511
2017-18 173 57 350 100 680
2018-19 177 57 429 97 760
2019-20 178 57 552 94 881
2020-21 128 100 639 94 961
Notes
Source: Orange County Sanitation District's Financial Management Division.
The Debt Service Requirements Reserve is held pursuant to the provisions of certificates of participation issues, and the
monies are not available for the general needs of the Orange County Sanitation District.
Debt
Service
Requirements
Self-
Insurance
Capital
Improvement
Program
Cash Flow
Contingency
The Cash Flow Contingency Reserve is to fund operations, maintenance, and certificates of participation debt service
expenses for the first half of the fiscal year, prior to the receipt of the first installment of the property tax allocation and
sewer service user fees.
The Self-Insurance Reserve is to provide requirements for property damage including fire, flood and earthquake, general
liability and workers' compensation.
The Capital Improvement Program Reserve is to fund annual increments of the capital improvement program with a
target level at one half of the average annual capital improvement program over the next 10 years.
The Board of Directors of the Orange County Sanitation District has established the criteria below to determine the total
funds required as listed in the Accumulated Funds and Reserves Policy:
66
ORANGE COUNTY SANITATION DISTRICT
Sewer Service Fees
Single Family Residence Rate
Last Nine Fiscal Years and Next Fiscal Year
2012-13 294.00$
2013-14 308.00
2014-15 316.00
2015-16 322.00
2016-17 327.00
2017-18 331.00
2018-19 335.00
2019-20 339.00
2020-21 339.00
2021-22 343.00
Source: Orange County Sanitation District's Financial Management Division.
Sewer service fees are comprised of three categories: residential customers, commercial customers, and
industrial customers. Although the majority of sewer service fee revenues are from residential and
commercial customers (see the schedule of Number of Accounts and Revenues by Customer Class), the
fee paid by each residential and commercial customer is less than the individual fees paid by industrial
customers. The rates for commercial and industrial customers are derived from the base sewer service fee
charged for a single-family residence and are based on the type of business and the strength and volume
of waste that is discharged into the sewer system. Due to the complexity of the rate structure for
commercial and industrial customers and since the rates are derivatives of the single-family residence rate,
only the single-family residence rate is presented within the statistical section.
Fiscal Year
Sewer Service
Charge
150
200
250
300
350
400
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
SF
R
A
n
n
u
a
l
F
e
e
Fiscal Year
Annual Sewer Service Fees
Single Family Residence
67
-
ORANGE COUNTY SANITATION DISTRICT
Number of Accounts and Revenues by Customer Class
(Dollars in Millions)
Last Ten Fiscal Years
Number of Total Percentage Total Percentage
Equivalent Sewer Svc.of Sewer Number of Sewer Svc.of Sewer
Fiscal Single-Family Charge Service Charge Customer Charge Service Charge
Year Dwellings Revenue Revenues Accounts Revenue Revenues
2011-12 874,008 233.4$ 96%516 9.5$ 4%
2012-13 883,477 259.8 96%527 10.8 4%
2013-14 873,308 269.0 95%489 14.4 5%
2014-15 824,465 260.5 95%467 14.2 5%
2015-16 863,317 278.0 96%450 12.6 4%
2016-17 859,869 281.2 95%466 13.8 5%
2017-18 871,338 288.4 94%473 17.9 6%
2018-19 871,312 291.9 97%476 9.4 3%
2019-20 904,886 306.8 96%473 12.8 4%
2020-21 908,219 307.9 96%467 12.6 4%
Source: Orange County Sanitation District's Financial Management Division.
Residential/Commercial Industrial
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Residential/Commercial Users Industrial Users
68
□ ■
ORANGE COUNTY SANITATION DISTRICT
Principal Sewer Service Customers
For the Current Fiscal Year and Nine Years Ago
Fiscal Year Ended 6/30/21 Fiscal Year Ended 6/30/12
Industrial % to Total Industrial % to Total
Permittee Service Permittee Service
Service Charge Service Charge
Customer Charges Rank Revenue Charges Rank Revenue
House Foods America Corp. (West) 1,532,692$ 1 0.46% 719,741$ 4 0.28%
Stremicks Heritage Foods, LLC 1,150,290 2 0.34% 958,066 1 0.37%
Pulmuone Wildwood, Inc. 651,887 3 0.19% 550,742 5 0.21%
Newport Fab, LLC (TowerJazz Semiconductor)635,752 4 0.19% 382,420 8 0.15%
Ameripec, Inc. 516,918 5 0.15%
House Foods America Corp. (East) 511,698 6 0.15%
MCP Foods, Inc. 487,078 7 0.15% 764,660 3 0.29%
Nor-Cal Beverage Co. Inc. (NCB) 417,014 8 0.12%
Brea Power II, LLC 405,600 9 0.12%
Nor-Cal Beverage Co. Inc. (Main) 390,401 10 0.12%
Kimberly-Clark Worldwide, Inc. 872,777 2 0.34%
Pepsi-Cola Bottling Group 368,506 9 0.14%
Dean Foods Co. of CA Inc. 498,750 6 0.19%
Schreiber Foods Inc. 428,853 7 0.17%
Cargill, Inc. 316,631 10 0.12%
6,699,330$ 1.99%5,861,146$ 2.26%
Source: Orange County Sanitation District's Financial Management Division.
Although the majority of sewer service fee revenues are from residential and commercial customers (see the schedule of
Number of Accounts and Revenues by Customer Class), the fee paid by each residential and commercial customer is less
than the individual fees paid by industrial customers. Consequently, this schedule shows the largest sewer service fee
customers.
69
ORANGE COUNTY SANITATION DISTRICT
Ratio of Annual Debt Service to Total Expenses
(Dollars in Thousands)
Last Ten Fiscal Years
Total
Fiscal Total Debt Operating
Year Principal (1)Interest (4)Service (3)Expenses (2)
2011-12 14,370$ 50,975$ 65,345$ 172,319$ 37.92%
2012-13 23,965 53,640 77,605 149,817 51.80
2013-14 39,590 53,163 92,753 146,447 63.34
2014-15 27,875 53,586 81,461 149,226 54.59
2015-16 29,405 50,301 79,706 153,501 51.93
2016-17 35,575 47,143 82,718 150,253 55.05
2017-18 32,140 43,466 75,606 145,556 51.94
2018-19 31,655 44,481 76,136 166,585 45.70
2019-20 32,730 43,664 76,394 168,333 45.38
2020-21 30,430 42,061 72,491 168,018 43.14
Notes
Source: Orange County Sanitation District's Financial Management Division.
(2) - Excludes depreciation and amortization expense.
(3) - Debt consists of certificates of participation, revenue obligations, and anticipation notes.
(4) - Excludes amortization of premium/discount and deferred amount.
Ratio of Debt
Service to Total
Operating
Expenses
(1) - Excludes principal reductions due to debt refundings.
0%
10%
20%
30%
40%
50%
60%
70%
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
70
ORANGE COUNTY SANITATION DISTRICT
Debt Coverage Ratios
(Dollars in Millions)
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Operating & Non-Operating Revenues:
Service Charges, Net of Refunds-Regional 233.4$ 259.8$ 269.0$ 260.5$ 278.0$ 281.2$ 288.4$ 291.9$ 306.8$ 307.9$
Service Charges, Net of Refunds-Local (3) 5.7 5.8 5.7 5.5 5.7 1.3 (0.1) - - -
Industrial Sewer Service Charges 9.5 10.8 14.4 14.2 12.6 13.8 17.9 9.4 12.8 12.6
SAWPA Assessment 3.6 2.7 2.4 2.7 3.2 3.3 2.7 2.9 2.6 2.8
IRWD Assessment 14.2 25.6 19.6 26.4 26.6 36.0 9.9 36.3 20.8 16.0
Ad Valorem Taxes 67.9 79.2 74.9 79.8 84.4 88.3 94.2 99.5 104.5 110.2
Interest Earnings 15.7 (3.9) 6.5 4.8 9.2 3.1 3.2 29.1 33.7 1.7
Other Revenues (4) 2.5 3.7 3.0 3.2 4.0 5.0 6.4 8.0 11.2 25.0
Total Revenues 352.5 383.7 395.5 397.1 423.7 432.0 422.6 477.1 492.4 476.2
Operating Expenses (1) 172.3 149.8 146.4 149.2 153.5 150.3 145.6 166.6 168.3 168.0
Net Revenues 180.2$ 233.9$ 249.1$ 247.9$ 270.2$ 281.7$ 277.0$ 310.5$ 324.1$ 308.2$
Debt Service Requirements
Principal Payments 14.4$ 24.0$ 39.6$ 27.9$ 29.4$ 35.6$ 32.1$ 31.7$ 32.7$ 30.4$
Interest Payments 51.0 53.6 53.2 53.6 50.3 47.1 43.5 44.4 43.7 42.1
Total Debt Service Requirements 65.4$ 77.6$ 92.8$ 81.5$ 79.7$ 82.7$ 75.6$ 76.1$ 76.4$ 72.5$
Coverage Ratios 2.76 3.01 2.68 3.04 3.39 3.41 3.66 4.08 4.24 4.25
Ending Reserves (2) 465.0$ 542.0$ 428.0$ 428.0$ 404.0$ 580.0$ 663.0$ 787.0$ 790.0$ 867.0$
Notes
(1) - Operating expenses exclude depreciation and amortization expenses.
(2) - Excludes debt service reserves in accordance with the Orange County Sanitation District's reserve policy.
(3) - Local Sewer transferred to East Orange County Water District in FY2016-17.
(4) - Other revenues includes $16.1 million in CIP cost reimbursements in FY2020-21.
Source: Orange County Sanitation District's Financial Management Division.
Fiscal Year Ending June 30,
The Orange County Sanitation District has no legal debt limits as imposed by state legislation. OC San does have contractual covenants within
the existing certificates of participation indenture agreements which require minimum coverage ratios of 1.25. The coverage ratio is calculated
as the ratio of net annual revenues available for debt service payments to total annual debt service requirements.
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
71
ORANGE COUNTY SANITATION DISTRICT
Ratios of Outstanding Debt
Last Ten Fiscal Years
Debt as a
(5)(3)Percentage
Total Median of Median (4)Debt
Fiscal Outstanding Family Family Population per
Year Debt Income (1)Income Estimate (2)Capita
2011-12 1,376,404,782$ 85,300$ 0.006% 2,457,571 560.07
2012-13 1,325,928,512 84,100 0.006% 2,472,122 536.35
2013-14 1,278,998,124 84,900 0.007% 2,491,268 513.39
2014-15 1,241,140,357 85,900 0.007% 2,521,803 492.16
2015-16 1,206,722,347 85,000 0.007% 2,548,745 473.46
2016-17 1,140,679,773 88,000 0.008% 2,578,681 442.35
2017-18 1,095,737,610 92,700 0.008% 2,609,419 419.92
2018-19 1,050,502,373 97,900 0.009% 2,607,092 402.94
2019-20 1,004,215,901 103,000 0.010% 2,589,011 387.88
2020-21 963,115,533 106,700 0.011% 2,550,763 377.58
Notes & Data Sources
(1) - Data is for the entire county of Orange.
(2) - Data is for the estimated population served by the Orange County Sanitation District.
(3) - Data Source: U.S. Department of Housing and Urban Development.
(4) - Data Source: Demographic Research Unit, California Department of Finance.
(5) - Data Source: Orange County Sanitation District. Debt includes certificates of participation,
revenue obligations, and anticipation notes and is presented net of original issuance premiums.
72
ORANGE COUNTY SANITATION DISTRICT
Comparison of the Volume of Wastewater Treated
With Revenues and Expenses
Last Ten Fiscal Years
Millions of
Gallons of
Wastewater
Fiscal Treated
Year Per Day
2011-12 201 1,871.47$ 228,370$ 37,133$ 260,521$ 92,115$
2012-13 200 1,906.01 213,724 79,650 304,576 79,108
2013-14 198 1,936.64 246,252 41,767 301,459 94,037
2014-15 187 2,070.97 243,412 37,280 302,450 94,637
2015-16 183 2,110.43 244,003 34,079 315,428 108,248
2016-17 188 2,054.56 246,573 78,918 313,282 118,511
2017-18 185 2,069.30 242,955 36,494 317,499 105,029
2018-19 191 2,274.73 268,825 63,582 318,490 158,598
2019-20 188 2,421.83 282,221 54,261 341,064 151,333
2020-21 182 2,428.28 284,470 37,909 336,700 139,504
Source: Orange County Sanitation District's Financial Management Division.
Non-Operating
Revenues
(In Thousands)
Total
Operating
(In Thousands)
Revenues
Total expenses in FY 2020-21 increased $57 million, or 21.4 percent since FY 2011-12, primarily as a result of expansion of
the Capital Improvement Program (CIP) and increase in operational services levels with OC San's decision beginning in FY
2002-03 to maximize existing secondary treatment facilities as OC San moved from a 50/50 mix of primary and secondary
effluent treatment to meeting secondary treatment standards as of December 31, 2012. The majority of the increase in
expenses is due to depreciation expense as a result of the expansion in capital facilities. Increases were also realized in
repairs, maintenance, utilities, and other operating costs in order to deliver required levels of service. These increases are
offset by a decrease in feasibility studies.
In FY 2020-21, personnel expenses decreased 9.8 percent over the prior year. This decrease is mainly due to the difference
between projected and actual investment earnings on OCERS plan investments that have been recognized as pension
expense. The full-time equivalent positions authorized decreased by 1 in FY 2020-21.
As depicted from the chart above, actual wastewater treatment flows were 201 mgd in FY 2011-12. The last several years of
California's record-breaking drought and water conservation efforts have resulted in FY 2020-21 flows of only 182 mgd, a
decrease of 19 mgd or 9.45 percent since FY 2011-12.
Gallons
Collection,
Treatment
& Disposal
Cost per
Million
Non-Operating
(In Thousands)
Operating
(In Thousands)
TotalTotal
CostsCosts
Total
73
ORANGE COUNTY SANITATION DISTRICT
Authorized Full-time Equivalents (FTE) by Function
Last Ten Fiscal Years
Fiscal Year Ending June 30,
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Management (1)13 12 12 14 15 15 15 14 15 18
Human Resources (2)17 16 18 16 27 27 27 27 27 26
Administrative Services (2)111 111 110 111 98 99 99 100 101 101
Environmental Services (3)- - - - - 91 91 91 92 93
Facilities Support Services (3)84 81 78 76 63 - - - - -
Engineering 128 125 123 123 127 116 116 116 121 117
Operations and Maintenance 281 281 283 284 294 279 287 288 284 284
Total FTEs 634 626 624 624 624 627 635 636 640 639
Notes
(1) - Management Discretion positions used on a temporary basis have been excluded from FTE count.
(2) - In 2016, Risk Management moved from Administrative Services to Human Resources Department.
(3) - In 2017, Divisional reorganization created Environmental Services and eliminated Facilities Support Services.
Source: Orange County Sanitation District's Financial Management Division.
0
100
200
300
400
500
600
700
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Management (1)Human Resources (2)Administrative Services (2)
Environmental Services (3)Facilities Support Services (3)Engineering
Operations and Maintenance
74
■
□
□
□
□
□
□
ORANGE COUNTY SANITATION DISTRICT
Biosolids Produced
Last Ten Fiscal Years
Fiscal Year Wet Tonnage
2011-12 280,572
2012-13 274,957
2013-14 279,362
2014-15 275,943
2015-16 283,052
2016-17 288,771
2017-18 284,039
2018-19 254,616 (1)
2019-20 209,000
2020-21 198,306
Notes
Source: Orange County Sanitation District's Environmental Compliance Division.
(1) Beginning in Fiscal Year 2018-19, biosolids produced were reduced due to the commissioning of
dewatering centrifuges at both treatment plants.
180,000
200,000
220,000
240,000
260,000
280,000
300,000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Wet Tonnage by Fiscal Year
75
,
..::::::::::;.
.......---: -_..:::::::::.ii ., -~ ...:::::::::::. ..::::::::::;.
/ --- - -
-
..::::::::::;.
/ ------ -
/ -- - - -
--
..::::::::::;.
/ ------ --..::::::::::;.
-,_ --·-- ---'7
ORANGE COUNTY SANITATION DISTRICT
Capital Asset Statistics
Last Ten Fiscal Years
Number Primary Secondary
Fiscal of Pump Treatment Treatment
Year Stations Capacity (1) Capacity (1)
2011-12 572 17 376 332
2012-13 572 17 376 332
2013-14 580 17 376 332
2014-15 580 17 376 332
2015-16 570 17 376 332
2016-17 396 (2)17 376 332
2017-18 396 17 376 332
2018-19 389 17 376 332
2019-20 388 17 376 332
2020-21 388 17 376 332
Notes
(1) - Capacity is presented as million gallons treated per day.
(2) - In FY 2016-17, local sewers were transferred to East Orange County Water District.
Source: Orange County Sanitation District
Miles of
Trunk &
Subtrunk
Sewers
76
ORANGE COUNTY SANITATION DISTRICT
Demographic Statistics
Covering The Entire County of Orange (1)
Last Ten Fiscal Years
Total (6)
(2)Personal Per Capita Public (7)
Fiscal Population Income Personal School Unemployment
Year Estimates (In Thousands)Income Enrollment Rate
2011-12 3,056,000 169,584,000$ (4)55,492$ 85,300$ 502,195 7.9%
2012-13 3,082,000 166,370,000 (4)53,981 84,100 501,801 6.1%
2013-14 3,114,000 179,141,000 (4)57,528 84,900 500,487 5.2%
2014-15 3,148,000 193,081,000 (4)61,334 85,900 497,116 4.3%
2015-16 3,183,000 200,783,000 (4)63,080 85,000 493,030 4.4%
2016-17 3,194,000 209,642,000 (4)65,636 88,000 490,430 3.8%
2017-18 3,221,000 218,878,000 (4)67,953 92,700 485,835 3.3%
2018-19 3,222,000 227,732,000 (4)70,680 97,900 478,823 3.0%
2019-20 3,194,000 242,361,000 (4)75,880 103,000 473,612 13.6%
2020-21 3,153,764 258,933,000 (4),(8)82,103 106,700 456,572 6.5%
Notes and Data Sources
(2) - Data Source: Demographic Research Unit, California Department of Finance.
(3) - Data Source: Bureau of Economic Analysis, U.S. Department of Commerce.
(4) - Data Source: A. Gary Anderson Center for Economic Research, Chapman University.
(5) - Data Source: U.S. Department of Housing and Urban Development.
(6) - Data Source: California Department of Education, Educational Demographics Unit.
(7) - Data Source: State of California, Employment Development Department as of June 30 of each fiscal year.
(8) - Forecasted number.
Median
(5)
(1) -The Orange County Sanitation District services 479 square miles or 60% of the total 799 square miles that make
up the boundaries of Orange County.
Income
Family
77
ORANGE COUNTY SANITATION DISTRICT
Estimated Population Served by the
Orange County Sanitation District
June 30, 2021
Anaheim 353,468
Brea 45,137
Buena Park 81,626
Costa Mesa 112,780
Cypress 48,531
Fountain Valley 54,953
Fullerton 139,431
Garden Grove 172,476
Huntington Beach 196,874
Irvine 271,564
La Habra 62,808
La Palma 15,442
Los Alamitos 11,538
Newport Beach 85,865
Orange 137,366
Placentia 51,173
Santa Ana 331,369
Seal Beach 24,443
Stanton 39,573
Tustin 80,009
Villa Park 5,759
Westminster 91,466
Yorba Linda 67,846
Subtotal Cities (1)2,481,497
Estimated Population Served in
Unincorporated Areas (2)69,266
2,550,763
Data Sources
(1) Demographic Research Unit, State of California Department of Finance
(2) Center for Demographic Research, California State University, Fullerton.
Population
as of
January 1, 2021
78
ORANGE COUNTY SANITATION DISTRICT
Principal Orange County Employers (1)
For the Current Fiscal Year and Nine Years Ago
Fiscal Year Ended 6/30/21 Fiscal Year Ended 6/30/12
Percentage of Percentage of
Number of Total County Number of Total County
Employers Employees (2)Rank Employment (3)Employees (4)Rank Employment (5)
Walt Disney Co. 28,000 1 1.91% 22,000 1 1.48%
University of California, Irvine 25,512 2 1.74% 21,291 2 1.43%
County of Orange 18,543 3 1.27% 17,321 3 1.16%
Providence (St. Joseph Health) 12,866 4 0.88% 12,048 4 0.81%
Albertsons Southern California 8,159 5 0.56%
Kaiser Permanente 8,050 6 0.55% 5,968 8 0.40%
Hoag Memorial Hospital 6,710 7 0.46%
Wal-Mart Stores Inc. 6,400 8 0.44%
Target Corp. 6,000 9 0.41% 5,527 9 0.37%
Yum! Brands Inc 5,600 10 0.38% 6,300 7 0.42%
Boeing Co. 7,700 5 0.52%
BankAmerica Corp. 6,300 6 0.42%
Cedar Fair LP 5,200 10 0.35%
Total 125,840 8.60%109,655 7.36%
Notes & Data Sources
(1) - Data is for the entire county of Orange.
(2) - Data Source: Orange County Business Journal Book of Lists published November 2020
(3) - Data Source: State of California, Employment Development Department.
- Percentage is calculated by dividing employees by total employment of 1,465,700 as of June 2021.
(4) - Data Sources: Orange County Business Journal Book of Lists published November 2011; County of Orange
(5) - Data Source: State of California, Employment Development Department.
- Percentage is calculated by dividing employees by total employment of 1,491,000 as of June 2012.
79
ORANGE COUNTY SANITATION DISTRICT
Operating Indicators
June 30, 2021
Consolidated Revenue Area
Orange County (unincorporated areas)
Cities:
Anaheim Huntington Beach Santa Ana
Brea Irvine Seal Beach
Buena Park La Habra Stanton
Costa Mesa La Palma Tustin
Cypress Los Alamitos Villa Park
Fountain Valley Newport Beach Westminster
Fullerton Orange Yorba Linda
Garden Grove Placentia
Special Districts:
Costa Mesa Sanitary District
Midway City Sanitary District
Yorba Linda Water District
Revenue Area No. 14
Orange County (unincorporated areas)
Cities:
Irvine
Orange
Tustin
Special District:
Irvine Ranch Water District
Governing Body:25-member Board of Directors
Authorized Full-Time Equivalent Employees:639
Operational Date:July 1, 1954
Authority:California Health & Safety Code Section 4700 et. seq.
Services:Wastewater collection, treatment, and disposal
Service Area:479 square miles
Population Served:2.6 million
Total Miles of Sewers (including force mains):388 miles
On-Plant Pumping Stations:2
Off-Plant Pumping Stations:15
Wastewater System Treatment Capacities (Million Gallons per Day)
Actual Flows Existing Secondary
FY20-21 Treatment Capacity
Plant 1 118 182
Plant 2 64 150
Total 182 332
Source: Orange County Sanitation District's Financial Management Division.
District Organization:The Orange County Sanitation District is one consolidated district made up of two
revenue areas which service unincorporated county areas and twenty-three cities and related special districts, as
follows:
Existing Primary
376
168
208
Treatment Capacity
80
ORANGE COUNTY SANITATION DISTRICT
OTHER DATA TRENDS
Information within this section consists of other data and trends including additional
annual disclosures as required by the Orange County Sanitation District's debt
covenants beyond what is allowed to be reported in the Statistical Section.
81
ORANGE COUNTY SANITATION DISTRICT
Cash and Investment Portfolio
As of June 30, 2021
Net Unrealized
Cost Market Value Gain/(Loss)
Shares Par Base Base % of Total Base
INVESTMENT PORTFOLIO:
CASH & CASH EQUIVALENTS (U.S. DOLLAR):
COMMERCIAL PAPER 12,000,000$ 11,997,000$ 11,999,040$ 1.35% 2,040$
FIRST AMERICAN SHORT TERM FDS 15,489,876 15,489,876 15,489,876 1.74% -
SUBTOTAL - CASH & CASH EQUIVALENTS 27,489,876 27,486,876 27,488,916 3.08% 2,040
FIXED INCOME SECURITIES (U.S. DOLLAR):
COMMERCIAL PAPER 8,000,000 7,991,754 7,993,120 0.90% 1,366
CONSUMER DISCRETIONARY 16,554,000 16,689,466 16,919,555 1.90% 230,089
CONSUMER STAPLES 3,880,000 3,878,991 4,110,472 0.46% 231,481
ENERGY 3,500,000 3,441,095 3,674,720 0.41% 233,625
FINANCE 106,469,000 107,309,038 109,328,694 12.27% 2,019,656
FIXED INCOME FUNDS OTHER 10,000,000 10,001,003 10,001,800 1.12% 797
HEALTH CARE 3,755,000 3,709,323 3,848,667 0.43% 139,344
INDUSTRIAL 3,250,000 3,293,938 3,379,495 0.38% 85,557
INFORMATION TECHNOLOGY 11,045,000 11,085,045 11,546,821 1.30% 461,776
MTG RELATED SECURITY 31,108,779 31,171,653 31,335,141 3.52% 163,488
SHORT TERM FUNDS 15,000,000 15,000,000 15,005,090 1.68% 5,090
SUPRANATIONAL 61,665,000 61,260,431 61,692,730 6.92% 432,299
U.S. AGENCY 175,115,000 176,626,457 179,601,630 20.15% 2,975,173
U.S. GOVERNMENT 388,004,189 387,949,947 392,691,317 44.06% 4,741,370
U.S. GOVERNMENT TIPS 11,693,656 11,548,936 12,574,071 1.41% 1,025,135
SUBTOTAL - FIXED INCOME SECURITIES 849,039,624 850,957,077 863,703,323 96.92% 12,746,246
TOTAL INVESTMENT PORTFOLIO 876,529,500$ 878,443,953 891,192,239 100.00% 12,748,286$
DEMAND DEPOSITS AND CASH ON HAND 1,655,860 1,655,860
MONIES HELD WITH FISCAL AGENTS 120 120
MONIES WITH THE LOCAL AGENCY INVESTMENT FUND 67,784,965 67,790,589
TOTAL CASH AND INVESTMENTS 947,884,898$ 960,638,808$
Source: US Bank and Orange County Sanitation District's Financial Management Division.
82
ORANGE COUNTY SANITATION DISTRICT
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
Tax Rate
OC San
1958 OC San's
General Average
Fiscal Basic Obligation Total Share of
Year Levy Bonds Tax Rate Basic Levy
2011-12 1.00% 0.00% 1.00% 1.64%
2012-13 1.00% 0.00% 1.00% 1.64%
2013-14 1.00% 0.00% 1.00% 1.65%
2014-15 1.00% 0.00% 1.00% 1.63%
2015-16 1.00% 0.00% 1.00% 1.62%
2016-17 1.00% 0.00% 1.00% 1.61%
2017-18 1.00% 0.00% 1.00% 1.59%
2018-19 1.00% 0.00% 1.00% 1.59%
2019-20 1.00% 0.00% 1.00% 1.58%
2020-21 1.00% 0.00% 1.00% 1.59%
Notes
Source: Orange County Auditor-Controller's Office.
In 1978, California voters passed Proposition 13 which set the property tax rate at a
1.00% fixed amount of assessed value. This 1.00% is shared by all taxing agencies
within which the subject property resides. In addition to the 1.00% fixed amount,
property owners were charged taxes as a percentage of assessed property values for
the payment of OC San general obligation bonds (which were paid in full in fiscal year
1998-99).
83
ORANGE COUNTY SANITATION DISTRICT
Assessed and Estimated Actual Value of Taxable Property
(Dollars In Thousands)
Last Ten Fiscal Years
Percent
Change in
Fiscal Assessed
Year Secured Unsecured Total Value
2011-12 302,526,970$ 6,163,979$ 308,690,949$ -0.27%
2012-13 310,451,986 5,901,040 316,353,026 2.48%
2013-14 323,064,994 6,220,505 329,285,499 4.09%
2014-15 343,102,030 7,378,643 350,480,673 6.44%
2015-16 365,267,850 6,936,768 372,204,618 6.20%
2016-17 385,137,024 6,642,312 391,779,336 5.26%
2017-18 409,310,248 6,990,609 416,300,857 6.26%
2018-19 435,911,818 7,213,037 443,124,855 6.44%
2019-20 461,217,033 7,489,937 468,706,970 5.77%
2020-21 486,958,908 7,289,732 494,248,640 5.45%
Source: Orange County Auditor-Controller's Office.
In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total
maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the
assessed value of property may be increased by an inflation factor which is limited to a maximum
increase of 2%. With a few exceptions, property is only reassessed at the time that it is sold to a new
owner. At that point, the new assessed value is reassessed at the purchase price of the property sold.
The assessed valuation data shown above represents the only data currently available with respect to the
actual market value of taxable property and is subject to the limitations described above. Consequently,
the assessed and estimated values are the same.
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
$500,000,000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Secured Unsecured
84
□ □
ORANGE COUNTY SANITATION DISTRICT
Property Tax and User Fee Levies and Collections
(Dollars in Thousands)
Last Ten Fiscal Years
(1)
Total Tax Current Tax Percent Total Tax % of Total % of Pass-
Fiscal and User and User Fee of Levy Delinquent and User Fee Collection Outstanding Delinquencies Through
Year Fee Levy Collection Collected Collection Collection to Levy Delinquencies to Levy Payments
2011-12 314,077$ 314,133$ 100.02 121$ 314,254$ 100.06 (56)$ (0.02) 3,116$
2012-13 340,298 340,156 99.96 64 340,220 99.98 142 0.04 14,687
2013-14 356,607 356,108 99.86 76 356,184 99.88 499 0.14 7,274
2014-15 362,978 362,927 99.99 108 363,035 100.02 51 0.01 8,447 (2)
2015-16 371,502 370,170 99.64 637 370,807 99.81 1,332 0.36 9,199 (2)
2016-17 381,226 380,078 99.70 608 380,686 99.86 1,148 0.30 9,751
2017-18 386,538 385,673 99.78 741 386,414 99.97 865 0.22 11,353
2018-19 394,641 393,809 99.79 786 394,595 99.99 832 0.21 12,524
2019-20 401,604 400,865 99.82 931 401,796 100.05 739 0.18 13,469
2020-21 405,878 405,053 99.80 1,035 406,088 100.05 825 0.20 15,034
Notes
Source: Orange County Auditor-Controller's Office.
(1)Upon dissolution of California redevelopment agencies during fiscal year 2011-12, property tax increment formerly remitted
to OC San by its member city redevelopment agencies was instead deposited into the newly formed Redevelopment Property
Tax Trust Fund (RPTTF) from which the Auditor-Controller makes disbursements on behalf of the successor agencies. There
is no tax levy associated with these collections; thus, they have been excluded from the "% of Total Collection to Levy"
calculation.
(2)In fiscal year 2014-15 and 2015-16, the County did not bill user fees for wholly exempt agencies not subject to property
taxes. In fiscal year 2014-15 and 2015-16, OC San internally billed user fees of $5 million and $4.5 million, respectively, to
wholly exempt agencies. These amounts have been excluded from the levy and collection amounts above, as only tax and user
fees included on County property tax billings are shown in this schedule.
$300,000
$320,000
$340,000
$360,000
$380,000
$400,000
$420,000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Total Tax and User Fee Levy Total Tax and User Fee Collection
85
,, .. ~ ---""'~
,.,irillE::;;;i ....._ ------
... ilP!:.ii
,L1......-:;;o -,...._ -,...._ -----...::~
----....._ -....._ -------
.,.. - ----- ---
/ITO_ --.I'-I.,;-----IJ -,........,
□ □
ORANGE COUNTY SANITATION DISTRICT
Property Value and Construction
Covering The Entire County of Orange (1)
(Dollars In Thousands)
Last Ten Fiscal Years
Non-
Residential
Construction (3)Total
Fiscal Calendar No. of Construction
Year Value Year Value Units Value Value (3)
2011-12 424,769,642$ 2012 1,265,430$ 6,163 1,560,509$ 2,825,939$
2012-13 432,902,274 2013 1,521,280 10,453 2,653,728 4,175,008
2013-14 447,749,156 2014 1,993,154 10,636 2,640,484 4,633,638
2014-15 476,303,290 2015 2,196,000 10,897 2,834,000 5,030,000
2015-16 504,650,360 2016 2,487,000 12,134 3,160,000 5,647,000
2016-17 531,052,158 2017 2,062,000 10,294 3,217,000 5,279,000
2017-18 563,662,044 2018 3,507,000 8,105 2,776,000 6,283,000
2018-19 598,901,016 2019 3,144,000 10,294 2,650,000 5,794,000
2019-20 632,758,256 2020 1,929,000 5,907 1,884,000 3,813,000
2020-21 663,241,179 2021 1,963,000 10,227 2,907,000 4,870,000 (4)
Notes and Data Sources
(2) - Data Source: Orange County Auditor-Controller's Office.
(3) - Data Source: A. Gary Anderson Center for Economic Research, Chapman University.
(4) - Forecasted numbers.
(1)-The Orange County Sanitation District services 479 square miles or 60% of the total 799 square miles
that make up the boundaries of Orange County.
Residential
Construction (3)
Assessed
Property Value (2)
86
ORANGE COUNTY SANITATION DISTRICT
Insurance in Force
As of June 30, 2021
Type Insurer Deductible
All-Risk Property
Fire and Other Perils Public Entity Property $500,000 per $800 million / occurrence
Insurance Program occurrence
(multiple insurers)
Flood Public Entity Property $500,000 per $100 million / occurrence
Insurance Program occurrence
Boiler & Machinery Public Entity Property $25,000 to $100 million / occurrence
Insurance Program $350,000
(multiple insurers)
Earthquake Multiple insurers 5% per structure,$25 million
(certain structures only)min. $5 million
Crime Insurance Alliant Crime Insurance Program $25,000 $5 million
Cyber Insurance Lloyd's of London (Beazley)$100,000 $2 million
$500,000 for Breach Response
Excess Great American Insurance Co.$750,000 $40 million / occurrence
General Liability (first $10 million layer); and annual aggregate
Berkley National Insurance Co.
($15 million layer, excess $10 million)
Arch Insurance Company
($5 million layer, excess $25 million)
Great American Insurance Co.
($10 million layer, excess $30 million)
Travel & Accident Chubb Group of Insurance None Accidental Death & Dismemberment:
Companies Class 1: Elected Officials
$500,000 per occurrence
Class 2: Employees 10X annual
10X annual salary, up to
$500,000 per occurrence
Excess Workers'Public Risk Innovation, Solutions,$1 million Unlimited statutory coverage
Compensation and Management (PRISM)each accident each accident, each employee
$4 million employer's liability
Pollution Liability Public Risk Innovation, Solutions,$75,000 $10 million per loss
and Management (PRISM)
Watercraft
Liability Atlantic Specialty Insurance Co.$2,500 bodily injury $10 million
$10,000 all other
Hull & Machinery Atlantic Specialty Insurance Co.$10,000
Pollution Liability Great American Insurance Co.$25,000 $5 million
Source: Orange County Sanitation District's Risk Management/Safety/Security Division.
Limit
$600,000
87
(THIS PAGE INTENTIONALLY LEFT BLANK)
88
ORANGE COUNTY
SANITATION DISTRICT
FINANCIAL MANAGEMENT DIVISION
10844 Ellis Avenue
Fountain Valley, California 92708-7018
714.962.2411
www.ocsan.gov
06/30/21
nrr~SAN
ORANGE COUNTY SANITATION DISTRICT
11/2/2021
1
Annual Comprehensive
Financial Report (ACFR)
For the Year Ended June 30, 2021
Presented by:
Kim Cardenas,
CPA, MBA
Financial Management
Accounting Supervisor
Administration Committee
November 10, 2021
Renaming the Report
2
1
2
11/2/2021
2
•Provides financial condition and performance
for fiscal year ended June 30, 2021.
•GFOA Excellence in Financial Reporting Award –
26 consecutive years.
•Independent auditor – Macias Gini & O’Connell,
LLP (MGO).
Overview of the ACFR
3
Total Net Position: $2.7 billion
ACFR page 4
Financial Net Position
4
(Dollars in thousands)
Total assets & deferred outflows 3,852,165 3,701,949 150,216 4.1%
Total liabilities & deferred inflows 1,141,783 1,162,939 (21,156) -1.8%
Net position
Net investment in capital assets 1,740,102 1,678,041 62,061 3.7%
Unrestricted 970,280 860,969 109,311 12.7%
Total net position 2,710,382$ 2,539,010$ 171,372$ 6.7%
Increase
(Decrease)
% Increase
(Decrease)
June 30,
2020
June 30,
2021
3
4
11/2/2021
3
Increase in Net Position: $171.4 million
ACFR page 6
Increase in Net Position
5
(Dollars in thousands)
Total revenues 476,204 492,397 (16,193) -3.3%
Total expenses 322,379 336,482 (14,103) -4.2%
Income before capital contributions 153,825 155,915 (2,090) -1.3%
Capital facilities capacity charges 17,547 22,593 (5,046) -22.3%
Increase in net position 171,372 178,508 (7,136) -4.0%
Beginning net position 2,539,010 2,360,502 178,508 7.6%
Ending net position 2,710,382$ 2,539,010$ 171,372$ 6.7%
June 30,
2021
June 30,
2020
Increase
(Decrease)
% Increase
(Decrease)
(Dollars in Thousands)
ACFR page 62
Net Position –Last 10 Fiscal Years
6
5
6
$3.000,000 ,,,,.-
...,. -$2.500,000 .,.-...,. .. ----$2.000,000 ...,.
$1.500,000
,,;:. ...,. .., -~ --/ --------... -
$1.000,000
~ ... .....
/ ---------
$500,000 .,,. ----------
$0 / ---------7
2011.12 2012.13 2013-14 2014.15 2015-1e 201e.11 2011.1a 201a.1g 2019.20 2020-21
D et Investment in Capital Assets □Unrestricted
11/2/2021
4
ACFR page 13
Financial Performance ‐Operations
7
(Dollars in thousands)
Operating expenses:
Salaries and benefits 74,772 82,916 (8,144) -9.8%
Utilities 9,789 8,622 1,167 13.5%
Supplies, repairs and maintenance 47,545 44,063 3,482 7.9%
Contractual services 22,653 24,625 (1,972) -8.0%
Feasibility studies 5,704 5,113 591 11.6%
Other 7,555 2,994 4,561 152.3%
Total operating expenses 168,018$ 168,333$ (315)$ -0.2%
June 30,
2021
June 30,
2020
Increase
(Decrease)
% Increase
(Decrease)
Major capital asset additions:
$36.5 million Ocean Outfall System Rehabilitation (J‐117)
$18.6 million Newhope‐Placentia Trunk Replacement (2‐72)
$15.9 million Westminster Blvd Force Main Replacement (3‐62)
$10.5 million Headworks Modifications at P2 for GWRS (P2‐122)
$ 8.0 million Headquarters Complex (P1‐128)
ACFR page 8
Capital Improvement Outlays
8
7
8
11/2/2021
5
Cash and investments: $960.6 million —Increase: $79.9 million
ACFR page 21
Available Resources
9
(Dollars in thousands)
Cash on hand 7 6 1 16.7%
Deposits with financial institutions 1,649 9,056 (7,407) -81.8%
Managed portfolio - cash and investments 958,983 871,719 87,264 10.0%
Held by trustees - cash and cash equivalents 0 7 (7) -100.0%
Total cash and investments 960,639$ 880,788$ 79,851$ 9.1%
June 30,
2021
June 30,
2020
Increase
(Decrease)
% Increase
(Decrease)
Questions
?
10
9
10
ADMINISTRATION COMMITTEE
Orange CountySanitation District
949-296-4303pgeorge@mgocpa.com111 Pacifica, Suite 300Irvine, CA 92618
Peter S. George, CPA
PRESENTED BY
PARTNER
NOVEMBER 10, 2021
2
MEETING
INTRODUCTIONS
2
OUR AUDIT RESPONSIBILITIES AUDIT FOCUS AREAS DELIVERABLES
REQUIRED COMMUNICATIONS
TO THE ADMINISTRATION
COMMITTEE
QUESTIONS
Our Responsibilities
3
AUDIT OF ORANGE COUNTY SANITATION DISTRICT FINANCIAL STATEMENTS
9 Audit performed in
accordance with U.S. *$$6
9 Fairly presented in
DFFRUGDQFH86*$$39As of and for the year ended June 30, 2021
Audit Focus Areas
4
Focus Areas
I
I
Investments
Cash/cash
equivalents
Adequacy
and
completeness
of footnote
disclosures
Net
position
classifications
Capital
assets
Pension and
OPEB liabilities
and related
accounts
Accounts
and other
receivables
Revenue
recognition
and expense
cutoff testing
Accounts
payable and
accrued
liabilities
Debt and
related
accounts
Net
pension
asset -
OCERS
l11GO
-r'{F'6" A-r-i0CAL
Deliverables
5
OC San’s basic financial statements included in the Comprehensive Annual Financial Report –GFOA submission
U.S. Bank debt covenant compliance
Union Bank debt covenant compliance
Southern California Edison tangible net worth calculation
GANN Limit Calculation
Communications to the Administration Committee including summary of audit results for OC San
Auditor’s Communication with the
Administration Committee
6
9 Auditor’s responsibility under professional
standards
9 Compliance with all ethical requirements
9 Adoption of or changes in accounting policies, alternative treatments
9 No auditor or management proposed adjustments or reclassifications made
9 No uncorrected misstatements related to current year
9 No difficulties encountered
9 No disagreements with management
9 Management representations provided
9 No consultations with other accountants
9 No major issues encountered during the fiscal year
9 No material weaknesses or significant deficiencies
noted for FY 20/21
I
I l11GO
-r'{F'6" A-r-i0CAL
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1731 Agenda Date:11/10/2021 Agenda Item No:11.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
SECTION 115 TRUST PENSION ACCOUNT CONTRACT AWARD
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve Professional Services Agreements to three firms: Chandler Asset Management, Inc.;
PFM Asset Management, Inc.; and Public Agency Retirement Services to establish and
oversee Orange County Sanitation District’s Internal Revenue Service (IRS) Code Section 115
pension trust administration and investment management services;
B. Adopt Resolution No. OC SAN 21-XX entitled: “A Resolution of the Board of Directors of
Orange County Sanitation District Adopting a Post-Employment Benefit Trust Agreement with
Chandler Asset Management, Inc.; and Authorizing Officers to Execute Documents and
Agreements”;
C. Adopt Resolution No. OC SAN 21-XX entitled: “A Resolution of the Board of Directors of
Orange County Sanitation District Adopting a Post-Employment Benefit Trust Agreement with
PFM Asset Management, Inc.; and Authorizing Officers to Execute Documents and
Agreements”;
D. Adopt Resolution No. OC SAN 21-XX entitled: “A Resolution of the Board of Directors of
Orange County Sanitation District Adopting a Post-Employment Benefit Trust Agreement with
Public Agency Retirement Services; and Authorizing Officers to Execute Documents and
Agreements”; and
E. Authorize staff to make an initial investment of up to $15 million into the Section 115 pension
trusts.
BACKGROUND
The Orange County Sanitation District (OC San) provides pension benefits to its employees through
the Orange County Employee Retirement System (OCERS) at an annual cost of approximately $15
million. Staff continually examines strategies to support and minimize these costs. After an initial
presentation, the Administration Committee directed staff to provide additional information and
analysis of options to address funding these benefits ranging from advance payments to
Orange County Sanitation District Printed on 11/3/2021Page 1 of 4
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OC6SAN
ORANGE COUNTY SANITATION DISTRICT
File #:2021-1731 Agenda Date:11/10/2021 Agenda Item No:11.
analysis of options to address funding these benefits ranging from advance payments to
implementing an Internal Revenue Service Code Section 115 Trust Pension Account (115 Trust).
Staff researched and presented different options for Board consideration.All options involve moving
funds from OC San’s investment portfolio to a different investment vehicle with an opportunity to
obtain higher yields.Once contributed into one of these strategies,fund use is limited to pension
costs. The Board directed OC San staff to move forward with implementing a Section 115 Trust.
RELEVANT STANDARDS
·Ensure the public’s money is wisely spent
·Ensure that investment proposals and decisions are based on clearly defined standards
PROBLEM
OC San has normal annual pension costs of approximately $15 million per year.Unfunded pension
liabilities can also accrue resulting from lower than expected OCERS investment returns or other
actuarial assumptions, significantly increasing OC San’s pension costs.
PROPOSED SOLUTION
Award three contracts to establish a Section 115 Trust for OC San and make an initial investment of
up to $15 million.Using three firms provides OC San additional investment diversity.This approach
also allows for a more thorough evaluation of each firm’s performance.At the end of the evaluation
period,OC San can,at its discretion,continue with all three firms or choose to terminate the contract
of one or more of the firms.
TIMING CONCERNS
A delay in the establishment and funding of the Section 115 Trust can result in missed investment
earnings opportunities.
RAMIFICATIONS OF NOT TAKING ACTION
OC San will not have the opportunity to diversify investments and potentially gain higher returns than
the current investment portfolio.
PRIOR COMMITTEE/BOARD ACTIONS
September 2020 -The Board directed staff to advertise a Request for Proposals to select a multiple-
employer Internal Revenue Service Code Section 115 Trust Pension Account.
June 2020 - Information Item provided to the Administration Committee.
Orange County Sanitation District Printed on 11/3/2021Page 2 of 4
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File #:2021-1731 Agenda Date:11/10/2021 Agenda Item No:11.
ADDITIONAL INFORMATION
A Request for Proposal was advertised on February 4,2021.OC San received four responsive
proposals valid for 180 calendar days from the opening.Proposals were received on March 9,2021
from California Public Employees’Retirement System;Chandler Asset Management,Inc.;PFM Asset
Management,Inc.;and Public Agency Retirement Services.A Staff Evaluation Committee consisting
of four representatives from the Financial Management Division reviewed and ranked each of the
proposals in accordance with the evaluation process set in OC San’s Purchasing Ordinance.A
representative from the Purchasing and Contracts Administration Division participated in the
evaluation process as a non-voting member.The proposals were evaluated according to work plan;
understanding and approach; related experience; and team and staff qualifications.
Individual scoring was the chosen method of evaluation for this procurement.Members of the team
performed an independent review of the proposals and later met as a group with the Buyer to discuss
their preliminary scores and discuss any questions/concerns they had.Proposals were evaluated
based on the following criteria:
Criterion Weight
Qualifications & Experience of Firm 25%
Proposed Staffing & Project Organization 20%
Work Plan 10%
Portfolio Performance 15%
Presentation/Interview 10%
Cost 20%
The evaluation team first reviewed and scored the proposals based upon the first four criteria listed
above.
Rank Proposer Criterion 1
(Max 25%)
Criterion 2
(Max 20%)
Criterion 3
(Max 10%)
Criterion 4
(Max 15%)
Subtotal
Score
(Max 70%)
1 Public Agency Retirement
Services
23%18%9%13%63%
2 PFM Asset Management,
Inc.
22%18%8%13%61%
3 Chandler Asset
Management, Inc.
21%17%8%12%58%
4 California Public
Employees’ Retirement
System
18%15%7%10%50%
Based on the evaluation results,there was a natural break between the top three proposers and the
remaining proposer.Therefore,the evaluation team deemed it not necessary to move forward with
California Public Employee’s Retirement System.The evaluation team also determined that,based
on the proposals received,interviews were not necessary.All proposals were accompanied by a
sealed cost proposal and the cost proposals were opened and scored for the remaining threeOrange County Sanitation District Printed on 11/3/2021Page 3 of 4
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File #:2021-1731 Agenda Date:11/10/2021 Agenda Item No:11.
sealed cost proposal and the cost proposals were opened and scored for the remaining three
proposers.
Rank Proposer Subtotal
Score
(Max 70%)
Cost
(Max 20%)
Total Weighted
Score
(Max 90%)
1 Chandler Asset Management, Inc.58%20%78%
2 Public Agency Retirement Services 63%11%74%
3 PFM Asset Management, Inc.61%11%72%
OC San negotiated contracts with these three proposers.Based on the above,staff recommends
approval of Professional Service Agreements to Chandler Asset Management,Inc.;PFM Asset
Management, Inc.; and Public Agency Retirement Services.
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San’s Purchasing Ordinance.
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
·Draft Service Agreements
·Resolutions
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1
1552824.1
SERVICE AGREEMENT SECTION 115 PENSION TRUST FUND ADMINISTRATION AND INVESTMENT MANAGEMENT SERVICES This Service Agreement ("Agreement") is entered into as of the date fully executed below, by and between the ORANGE COUNTY SANITATION DISTRICT, a California special district organized and existing under the County Sanitation District Act of 1939, Health & Safety Code
§ § 4700 et seq. (OC SAN), and CHANDLER ASSET MANAGEMENT, INC., a California corporation (CONSULTANT). OC SAN and CONSULTANT are sometimes individually referred to in this Agreement as each "Party" and collectively referred to as the "Parties." WHEREAS, OC SAN desires to establish a Section 115 pension trust; and, WHEREAS, OC SAN solicited Proposals through the Request for Proposal process in accordance with Ordinance No. OCSD-52; and,
WHEREAS, CONSULTANT submitted a Proposal to OC SAN for Section 115 pension trust fund administration and investment management services (Services); and
WHEREAS, CONSULTANT demonstrated that it is qualified to render the required Services; and
WHEREAS, OC SAN and CONSULTANT desire to enter into an agreement to provide for the required Services. NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agree as follows: 1. Retention of CONSULTANT as Manager. (a) Appointment of CONSULTANT. OC SAN hereby appoints CONSULTANT as an agent and attorney-in-fact of OC SAN and authorizes CONSULTANT to assume all investment duties with respect to the Assets in the custody of the Custodian (as defined below). (b) Authority of CONSULTANT.
(1) CONSULTANT is hereby granted full discretion to invest and reinvest all Assets under its management in any type of security it deems
appropriate, subject to the instructions given or guidelines set by OC SAN's Representative (defined below). CONSULTANT may direct the investments of the Assets and take such actions as it may deem appropriate in respect of the
Assets, with or without other the prior consent from OC SAN.
(2) The investment authority granted to CONSULTANT shall include the authority to exercise whatever powers OC SAN may possess with respect to the Assets, including, but not limited to, the right to vote, the power to exercise rights, options, warrants, conversion privileges and redemption privileges, and to
tender securities pursuant to a tender offer. CONSULTANT shall be solely responsible for voting all proxies related to the Assets. CONSULTANT shall maintain a record of how it voted and such record shall be made available to OC
2
1552824.1
SAN upon request. It is further understood that CONSULTANT need not and is not required to accept any direction concerning the voting of proxies from OC
SAN. The right of CONSULTANT to vote proxies shall continue until the earlier of the termination of this Agreement or such time as OC SAN specifically revoke CONSULTANT's authority to vote proxies and specifically reserve the right to OC SAN or to another. (c) Investment Criteria and Objectives. OC SAN will supply CONSULTANT with such information as CONSULTANT shall reasonably require concerning the Assets' tax position, liquidity requirements and other information useful in developing investment objectives. OC SAN's investment performance benchmarks in effect as of the date of this Agreement are set forth on Exhibit "I." OC SAN may change its Performance Benchmarks from time to time, and, on 30 days written notice to CONSULTANT and CONSULTANT's written acknowledgment of receipt of such notice, any such revised Performance Benchmarks. CONSULTANT shall make only those investments which are permitted as "authorized and suitable" investments as authorized by the OC SAN
Treasurer or designee. In addition, CONSULTANT shall ensure that the diversification requirements are met with regard to the Assets and that the Assets conform to the investment categories established by OC SAN's Treasurer. CONSULTANT shall use its
best efforts in managing the Assets to attain the performance benchmarks and objectives set forth in the Performance Benchmarks. OC SAN understands and agrees that CONSULTANT does not guarantee or represent that any of the performance
benchmarks and objectives will be achieved. (d) Transactions and Reporting. All investments shall be made on a "delivery vs. payment” basis. CONSULTANT shall confirm to OC SAN, in writing, all purchases, sales, exchanges and movements of Assets, within 2 business days of the effectuation of the same. CONSULTANT shall provide to OC SAN monthly, quarterly and/or annual written reports concerning its investment management activities as may be requested by OC SAN. (e) Attendance at Meetings. A representative of CONSULTANT will meet with OC SAN's Representative to explain the investment management activities, and any reports related thereto, as may reasonably be requested by OC SAN. In addition, on a quarterly basis, a representative of CONSULTANT shall meet with OC SAN's Representatives and on an annual basis with OC SAN's Administration Committee to review investment
performance and proposed strategies. (f) Access to Records and Documents. All records and documents relating to the
Assets' investments directed by CONSULTANT shall be made available for inspection or audit by OC SAN, or by a certified public accountant acting on OC SAN's behalf, at CONSULTANT's business offices at any time during normal business hours.
2. Custody of Assets. (a) CONSULTANT shall present a custodian or custodial institution for the approval of the OC SAN Treasurer or designee.
(b) Neither CONSULTANT nor any parent, subsidiary or related firm shall take possession of or handle any cash, securities, mortgages or deeds of trust, or other indicia of ownership of the Asset's investments, or otherwise act as custodian of such
3
1552824.1
investments. The Custodian will collect the interest and dividends of the investments of the Assets in its custody and CONSULTANT shall have no responsibility in this regard.
(c) OC SAN will instruct the Custodian to (i) periodically advise CONSULTANT as to the amount of cash or cash equivalents available for investment; (ii) carry out all investment transactions as may be directed, in writing, by CONSULTANT; and (iii) confirm all completed transactions, in writing, by way of a monthly statement, to CONSULTANT. 3. 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 OC SAN. If OC SAN 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 OC SAN's request. CONSULTANT shall assign only competent personnel as described in Exhibit “A” to perform Services
pursuant to this Agreement.
4. Term. The term of this Agreement shall commence as of the date first above written and
shall continue until this Agreement is terminated as provided for in section 12 hereof. 5. Fees.
[Fees are to be negotiated between OC SAN and CONSULTANT] 6. OC SAN Representative. In its capacity as investment manager, CONSULTANT shall receive all instructions, directions and other communications on OC SAN's behalf respecting OC SAN's Assets from OC SAN's Director of Finance or OC SAN's Controller ("OC SAN's Representative"). CONSULTANT is hereby authorized to rely and act upon all such instructions, directions and communications from such OC SAN's Representative or any agent of such OC SAN’s Representative. 7. Notices. (a) Written Notice. 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 3 days by written notice. Rejection or
other refusal to accept or the inability to deliver because of changed address of 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: To OC SAN: Orange County Sanitation District Attn.: Director of Finance 10844 Ellis Avenue Fountain Valley, CA 92708-7018
To CONSULTANT: Chandler Asset Management, Inc. Attn.: Martin Cassel
4
1552824.1
6225 Lusk Blvd. San Diego, CA 92121
Each Party shall provide the other Party written notice of any change in address as soon as practicable. (b) Electronic Delivery. From time to time, CONSULTANT may be required to deliver certain documents to OC SAN such as account information, notices and required disclosures. OC SAN hereby consents to CONSULTANT's use of secured electronic means, such as encrypted email, to make such delivery. This delivery may include notification of the availability of such document(s) on a secured website or web portal, and OC SAN agrees that such notification will constitute "delivery." OC SAN further agrees to provide CONSULTANT with OC SAN email address(s) and to keep this information current at all times by promptly notifying CONSULTANT of any change in email address(s).
OC SAN email address(s): Assistant General Manager and Director of Finance (Treasurer): LTYNER@OCSD.COM Controller: WRITCHIE@OCSD.COM 8. Liability. OC SAN recognizes that the opinions, recommendations and actions of CONSULTANT will be based on information deemed by it to be reliable, but not guaranteed to or by it. Provided that CONSULTANT acts in good faith, OC SAN agrees that CONSULTANT will not be liable for any error in judgment or for any act or omission, except as may otherwise be provided for under the Federal Securities laws or
other applicable law. 9. Payment of Commissions. It is the policy and practice of CONSULTANT to strive for the
best price and execution and for commission and discounts that are competitive in relation to the value of the transaction and which comply with Section 28(e) of the Securities and Exchange Act of 1934. Nevertheless, it is understood that
CONSULTANT may pay a commission on transactions in excess of the amount another broker or dealer may charge, and that CONSULTANT makes no warranty or representation regarding commissions paid on transactions hereunder. 10. Other Clients. It is further understood that CONSULTANT may be acting in a similar capacity for other institutional and individual clients, and that investments and reinvestments for OC SAN's portfolio may differ from those made or recommended with respect to other accounts and clients even though the investment objectives may be the same or similar. Accordingly, it is agreed that CONSULTANT will have no obligation to purchase or sell for OC SAN's Assets any securities which it may purchase or sell for other clients. 11. No Assignment. This Agreement may not be assigned by CONSULTANT without OC SAN's consent. 12. Termination. OC SAN understands that it has the right to terminate this Agreement without penalty within 5 days after entering into this Agreement. If not so terminated,
this Agreement may nevertheless be terminated by either Party without penalty upon 60 days prior written notice to the other. In the event of such termination by OC San,
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CONSULTANT shall return all OC San funds within sixty (60) days of receipt of said written notice. Termination will not affect the liabilities or obligations of the Parties
arising from transactions initiated prior to termination. 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 Determined
Insurance Requirement Form, Exhibit “C“. CONSULTANT shall not commence work under this Agreement until all required insurance is obtained in a form acceptable to OC SAN, 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. In addition to the requirements set forth in Exhibit “C”, during the term of this Agreement, CONSULTANT, at its sole cost and expense, shall carry and maintain the following insurance coverage with a company or companies acceptable to OC SAN:
(a) Employee Dishonesty/Fidelity Bond. $15,000,000.00 policy limits.
(b) Increased Insurance. In the event claims by others than OC SAN reduce the available coverage and policy limits, OC SAN may request CONSULTANT to obtain additional insurance in amounts that are standard in the industry for a firm
of CONSULTANT’s size and volume. In the event of CONSULTANT’s failure to do so, OC SAN may exercise its right to terminate this Agreement upon 15 days’ notice. (c) Conditions of Insurance. The provisions of this section apply to all policies of insurance required by this Agreement, including those set forth in Exhibit “C”, as follows:
(1) The insurance shall be issued and underwritten by insurance companies acceptable to OC SAN, which shall have an “A” policyholder’s rating (or better) and a financial rating not less than Class VII in
accordance with the most current Best’s Guide Rating and which shall be authorized in the State of California to issue the lines of insurance specified.
(2) CONSULTANT may satisfy the limit requirements in a single policy or multiple policies, provided, however, that any such additional policies
written as excess insurance shall have the same coverage (i.e., “following
form”) as CONSULTANT’s first or primary policy.
(3) Any costs accruing to CONSULTANT, which are attributable to a self-insured retention, deductibles or premium rating programs, which determine premium based on loss experience, shall be for the account of CONSULTANT, and OC SAN shall not be required to participate in any such loss. If any such programs exist, CONSULTANT agrees to protect and defend OC SAN in the same manner as if such cost provisions were
not applicable.
(4) CONSULTANT shall present at or prior to the time of execution of
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this Agreement, original certificates of insurance evidencing that the coverage required hereunder is in force and in compliance with the terms
and conditions of this Agreement. A separately executed certificate shall be presented for each insurance carrier providing coverage. (d) Naming OC SAN as Co-Loss Payee. All employee dishonesty insurance coverage obtained by CONSULTANT, as required hereunder, shall name OC SAN as co-loss payee, and the issuing underwriter shall execute a co-loss payee endorsement. (e) Claims Reporting. CONSULTANT has provided OC SAN with a declaration regarding the total amount of all claims, against its errors and omissions and
employee dishonesty insurance policies, for which any of CONSULTANT’s insurance carriers has established reserves. A copy of that declaration is attached as Exhibit “D” hereto. CONSULTANT represents and warrants that the declaration remains true and correct as of the date of execution of this
Agreement. On a semi-annual basis, CONSULTANT or its insurance carrier(s) shall provide OC SAN with an updated declaration of such claims and reserves.
14. Compliance with Political Reform Act of 1974. CONSULTANT understands and acknowledges that CONSULTANT is subject to the conflict of interest provisions of the Political Reform Act of 1974 (Government Code section 87100 et seq.) and the
regulations implementing the same (California Code of Regulations Title 2, Division 6, Chapter 7). As a material provision of this Agreement, CONSULTANT shall comply with such conflict of interest provisions. Specifically, the "high-level" officers and employees of CONSULTANT who exercise primary responsibility for the Assets, such as principal investment or financial officers or managers (but excluding persons who work under the supervision of such principal investment or financial officers or managers) shall, in compliance with Government Code section 87100 et seq. refrain from making, participating in, or influencing decisions affecting the Assets in which he/she knows or should know he/she has a financial interest, and shall file disclosure statements as required by Government Code section 87200 et seq.
15. Governing Law and Venue. It is understood that this Agreement shall be governed by and construed under and in accordance with the laws of the State of California. Venue for resolution of disputes shall be in Orange County.
16. Severability. Any provision of this Agreement which is prohibited or unenforceable shall be ineffective only to the extent of such prohibition or unenforceability without invalidating
the remaining provisions hereof. 17. Receipt of Brochure and Privacy Policy. OC SAN has received the disclosure statement
or “brochure” required to be delivered pursuant to Rule 204-3 of the Investment Advisers
Act of 1940, and a copy of CONSULTANT’S privacy policy. 18. Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OC SAN and CONSULTANT.
19. 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.
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20. Entire Agreement; Amendment. 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. This Agreement may be amended at any time in writing by mutual agreement of the Parties. [SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by the duly authorized representatives.
ORANGE COUNTY SANITATION DISTRICT Dated: _________________ By______________________________ John B. Withers Board Chairman Dated: _________________ By______________________________
Kelly A. Lore Clerk of the Board
Dated: _________________ By______________________________ Ruth Zintzun Purchasing & Contracts Manager CHANDLER ASSET MANAGEMENT, INC. Dated: _________________ By: ___________________________________
______________________________________ Print Name and Title of Officer
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SERVICE AGREEMENT SECTION 115 PENSION TRUST FUND ADMINISTRATION AND INVESTMENT MANAGEMENT SERVICES This Service Agreement ("Agreement") is entered into as of the date fully executed below, by and between the ORANGE COUNTY SANITATION DISTRICT, a California special district organized and existing under the County Sanitation District Act of 1939, Health & Safety Code § § 4700 et seq. (“OC SAN”), and PHASE II SYSTEMS, a California corporation doing business as PUBLIC AGENCY RETIREMENT SERVICES (“CONSULTANT” or “PARS”). OC SAN and CONSULTANT are sometimes individually referred to in this Agreement as each "Party" and collectively referred to as the "Parties." WHEREAS, OC SAN desires to establish a Section 115 pension trust; and, WHEREAS, OC SAN solicited Proposals through the Request for Proposal process in accordance with Ordinance No. OCSD-52; and,
WHEREAS, CONSULTANT submitted a Proposal to OC SAN for Section 115 pension trust fund administration and investment management services (Services); and
WHEREAS, CONSULTANT demonstrated that it is qualified to render the required Services; and
WHEREAS, OC SAN and CONSULTANT desire to enter into an agreement to provide for the required Services. NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agree as follows: 1. Services. CONSULTANT will provide the following Services for the Orange County Sanitation District Public Agencies Post-Employment Benefits Trust (the “Plan”): (a) Plan Installation Services: (1) Meeting with appropriate OC SAN personnel to discuss Plan provisions, implementation timelines, actuarial valuation process, funding strategies,
benefit communication strategies, data reporting, and submission requirements for contributions/reimbursements/distributions;
(2) Providing the necessary analysis and advisory services to finalize these elements of the Plan; and
(3) Providing the documentation needed to establish the Plan to be reviewed and approved by OC SAN legal counsel. The resulting final Plan documentation must be approved by OC SAN prior to the commencement of PARS Plan Administration Services outlined in paragraph (b) below. (b) Plan Administration Services:
(1) Monitoring the receipt of Plan contributions made by OC SAN to the trustee of the PARS Public Agencies Post-Employment Benefits Trust
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(“Trustee”), based upon information received from OC SAN and the Trustee;
(2) Performing periodic accounting of Plan assets, reimbursements, distributions, and investment activity, based upon information received from OC SAN and/or Trustee; (3) Coordinating the processing of distribution payments pursuant to authorized direction by OC SAN, and the provisions of the Plan, and, to the extent possible, based upon OC SAN-provided Data (as defined in Paragraph 2, below); (4) Coordinating actions with the Trustee as directed by the Plan Administrator within the scope of this Agreement; (5) Preparing and submitting a monthly report of Plan activity to OC SAN, unless directed by OC SAN otherwise;
(6) Preparing and submitting an annual report of Plan activity to OC SAN;
(7) Facilitating actuarial valuation updates and funding modifications for compliance with the applicable Governmental Accounting Standards Board pronouncements and/or statements, if prefunding Other Post-Employment
Benefit obligations; (8) Coordinating periodic audits of the Trust; and (9) Monitoring Plan and Trust compliance with federal and state laws. PARS is not licensed to provide and does not offer tax, accounting, legal, investment, or actuarial advice. 2. Information Furnished to Consultant. CONSULTANT will provide the Services contingent upon OC SAN providing CONSULTANT the following information (the “Data”): (a) Executed Legal Documents:
(1) Certified Resolution (2) Adoption Agreement to the Public Agencies Post-Employment Benefits Trust
(3) Trustee Investment Forms (b) Contribution – completed Contribution Transmittal Form signed by the Plan
Administrator (or authorized Designee) which contains the following information: (1) Agency name (2) Contribution amount (3) Contribution date (4) Contribution method (Check, ACH, Wire)
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(c) Distribution – completed Payment Reimbursement/Distribution Form signed by the Plan Administrator (or authorized Designee) which contains the following
information: (1) Agency name (2) Payment reimbursement/distribution amount (3) Applicable statement date (4) Copy of applicable premium, claim, statement, warrant, and/or administrative expense evidencing payment (5) Signed certification of reimbursement/distribution from the Plan Administrator (or authorized Designee) (d) Other information pertinent to the Services as reasonably requested by CONSULTANT. It shall be the responsibility of OC SAN to certify the accuracy, content and completeness
of the Data so that CONSULTANT may rely on such information without further audit. It shall further be the responsibility of OC SAN to deliver the Data to CONSULTANT in such a manner that allows for a reasonable amount of time for the Services to be performed.
CONSULTANT shall be under no duty to question Data received from OC SAN, to compute contributions made to the Plan, to determine or inquire whether contributions are adequate to meet and discharge liabilities under the Plan, or to determine or inquire whether
contributions made to the Plan are in compliance with the Plan or applicable law. In addition, CONSULTANT shall not be liable for nonperformance of Services to the extent such nonperformance is caused by or results from erroneous and/or late delivery of Data from OC SAN.
3. 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 OC SAN. If OC SAN 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 OC SAN's request. CONSULTANT shall assign only competent personnel as described in Exhibit “A” to perform Services pursuant to this Agreement.
4. Term. The term of this Agreement shall commence as of the date fully executed below and shall continue until this Agreement is terminated as provided for in section 8 hereof.
5. Fees. CONSULTANT will be compensated for performance of Services, as described in Section
1 of this Agreement based upon the schedule under Exhibit “D”. 6. Notices. (a) Written Notice. 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 3 days by written notice. Rejection or other
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refusal to accept or the inability to deliver because of changed address of 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:
To OC SAN: Orange County Sanitation District Attn.: Director of Finance 10844 Ellis Avenue Fountain Valley, CA 92708-7018
To CONSULTANT: Public Agency Retirement Services Attn.: President
4350 Von Karman Avenue, Suite 100 Newport Beach, CA 92660 Each Party shall provide the other Party written notice of any change in address as soon as practicable.
(b) Electronic Delivery. From time to time, CONSULTANT may be required to deliver certain documents to OC SAN such as account information, notices and required disclosures. OC SAN hereby consents to CONSULTANT's use of secured electronic means, such as encrypted email, to make such delivery. This delivery may include notification of the availability of such document(s) on a secured website or web portal, and OC SAN agrees that such notification will constitute "delivery." OC SAN further agrees to provide CONSULTANT with OC SAN email address(s) and to keep this information current at all times by promptly notifying CONSULTANT of any change in email
address(s). OC SAN email address(s):
Assistant General Manager and Director of Finance (Treasurer): LTYNER@OCSD.COM Controller: WRITCHIE@OCSD.COM
7. No Assignment. This Agreement may not be assigned by CONSULTANT without OC SAN's consent. 8. Termination. OC SAN understands that it has the right to terminate this Agreement without penalty within 5 days after entering into this Agreement. If not so terminated, this Agreement may nevertheless be terminated by either Party without penalty upon 60 days
prior written notice to the other. Termination will not affect the liabilities or obligations of the Parties arising from transactions initiated prior to termination.
9. Indemnification. CONSULTANT and OC SAN hereby indemnify each other and hold the other harmless, including their respective officers, directors, and employees, from any
claim, loss, demand, liability, or expense, including reasonable attorneys’ fees and costs,
incurred by the other as a consequence of, to the extent, CONSULTANT’s or OC SAN’s, as the case may be, negligent acts, errors or omissions with respect to the performance of their respective duties hereunder. 10. 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
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equal to the requirements set forth in the signed Determined Insurance Requirement Form, Exhibit “C“. CONSULTANT shall not commence work under this Agreement until all
required insurance is obtained in a form acceptable to OC SAN, 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. In addition to the requirements set forth in Exhibit “C”, during the term of this Agreement, CONSULTANT, at its sole cost and expense, shall carry and maintain the following insurance coverage with a company or companies acceptable to OC SAN: (a) Conditions of Insurance. The provisions of this section apply to all policies of insurance required by this Agreement, including those set forth in Exhibit “C”, as follows: (1) The insurance shall be issued and underwritten by insurance companies
acceptable to OC SAN, which shall have an “A-” policyholder’s rating (or better) and a financial rating not less than Class VII in accordance with the
most current Best’s Guide Rating and which shall be authorized in the State
of California to issue the lines of insurance specified. (2) CONSULTANT may satisfy the limit requirements in a single policy or
multiple policies, provided, however, that any such additional policies written
as excess insurance shall have the same coverage (i.e., “following form”) as
CONSULTANT’s first or primary policy. (3) Any costs accruing to CONSULTANT, which are attributable to a self-insured retention, deductibles or premium rating programs, which determine premium based on loss experience, shall be for the account of CONSULTANT, and OC SAN shall not be required to participate in any such loss. If any such programs exist, CONSULTANT agrees to protect and defend OC SAN in the same manner as if such cost provisions were not applicable. (4) CONSULTANT shall present at or prior to the time of execution of this Agreement, original certificates of insurance evidencing that the coverage
required hereunder is in force and in compliance with the terms and conditions of this Agreement. A separately executed certificate shall be presented for each insurance carrier providing coverage.
11. Governing Law and Venue. It is understood that this Agreement shall be governed by and
construed under and in accordance with the laws of the State of California. Venue for resolution of disputes shall be in Orange County. 12. Severability. Any provision of this Agreement which is prohibited or unenforceable shall be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof.
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13. Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OC SAN and CONSULTANT.
14. 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. 15. Entire Agreement; Amendment. 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. This Agreement may be amended at any time in writing by mutual agreement of the Parties. [SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by the duly authorized representatives.
ORANGE COUNTY SANITATION DISTRICT Dated: _________________ By______________________________ John B. Withers Board Chairman Dated: _________________ By______________________________
Kelly A. Lore Clerk of the Board
Dated: _________________ By______________________________ Ruth Zintzun Purchasing & Contracts Manager PUBLIC AGENCY RETIREMENT SERVICES Dated: _________________ By: ___________________________________ Tod Hammeras Chief Financial Officer
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EXHIBIT A
COMPETENT PERSONNEL
Name & Position Education & Professional Credentials Experience
Mitch Barker, Lead
Consultant & PARS Executive Vice President
B.A. in in Biomedical Sciences from
Texas A&M University
17 years’ experience working with CA
municipalities on their Section 115
trust programs.
Assisted over 100 CA local
governments with implementation of
pension prefunding trust account
Keith Stribling, HighMark
Director & Senior Portfolio
Manager
Chartered Financial Analyst (CFA)
designation
B.A. in Finance from Stetson
University
25 years of investment management
experience with HighMark
Serves as investment manager to 50
PARS 115 trust clients
Will Rogers, PARS Client
Services Coordinator
B.A. in Economics & Business
Administration from Colorado State
University
6 years of client services experience,
including 3 years with PARS
Faith Hermann, PARS Senior Manager, Plan
Implementation
Attended California State University,
Fullerton majoring in English
Over 20+ years of experience in client
services including 7 years working in PARS Plan Implementation
department
Phillip Muschetto, PARS
Vice President, Plan
Accounting
M.B.A. in Accounting from National
University
B.A. in Finance from California State
University, Long Beach
17 years of experience in PARS
Accounting department
EXHIBIT B
KEY PERSONNEL
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Mitch Barker, Executive Vice President, PARS
Keith Stribling, Senior Portfolio Manager, HighMark Capital Management
Faith Hermann, Senior Manager, Plan Implementation, PARS
Phillip Muschetto, Vice President, Plan Accounting, PARS
The services team assigned to the District has vast experience working with local government entities in California to implement and manage Section 115 pension prefunding trust accounts. PARS Executive Vice President, Mitch Barker, is the leading pension prefunding trust consultant in the nation, having helped over 100 California agencies set up their accounts since the program was pioneered by PARS
in 2015. In all, he has over 17 years’ experience assisting PARS clients with their Section 115 trusts. In addition to Mitch, Senior Portfolio Manager, Keith Stribling as well as PARS Senior Manager, Plan Implementation and PARS Vice President of
Plan Accounting who are all assigned to the District’s services team, have worked with PARS pension prefunding trust clients since the program was established in
2015. Together, they have served hundreds of agencies throughout California.
EXHIBIT D
FEES FOR SERVICES
PARS will be compensated for performance of Services, as described in Section 1 of this Agreement based upon the following schedule:
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An annual asset fee shall be paid from Plan assets based on the following schedule:
For Plan Assets from: Annual Rate:
$1 to $10,000,000 0.25%
$10,000,001 to $15,000,000 0.20%
$15,000,001 to $50,000,000 0.15%
$50,000,001 and above 0.10%
Annual rates are prorated and paid monthly. The annual asset fee shall be calculated by the following formula [Annual rate divided by 12 (months of the year) multiplied by the Plan asset balance at the end of the month]. Trustee and Investment Management Fees are not included.
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SERVICE AGREEMENT SECTION 115 PENSION TRUST FUND ADMINISTRATION AND INVESTMENT MANAGEMENT SERVICES This Service Agreement ("Agreement") is entered into as of the date fully executed below, by and between the ORANGE COUNTY SANITATION DISTRICT, a California special district organized and existing under the County Sanitation District Act of 1939, Health & Safety Code
§ § 4700 et seq. (OC SAN), and PFM ASSET MANAGEMENT, LLC, a Delaware limited liability corporation (CONSULTANT). OC SAN and CONSULTANT are sometimes individually referred to in this Agreement as each "Party" and collectively referred to as the "Parties." WHEREAS, OC SAN desires to establish a Section 115 pension trust; and, WHEREAS, OC SAN solicited Proposals through the Request for Proposal process in accordance with Ordinance No. OCSD-52; and,
WHEREAS, CONSULTANT submitted a Proposal to OC SAN for Section 115 pension trust fund administration and investment management services (Services); and
WHEREAS, CONSULTANT demonstrated that it is qualified to render the required Services; and
WHEREAS, OC SAN and CONSULTANT desire to enter into an agreement to provide for the required Services. NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agree as follows: 1. Retention of CONSULTANT as Manager. (a) Appointment of CONSULTANT. OC SAN hereby appoints CONSULTANT as an agent and attorney-in-fact of OC SAN and authorizes CONSULTANT to assume all investment duties with respect to the Assets in the custody of the Custodian (as defined below). (b) Authority of CONSULTANT.
(1) CONSULTANT is hereby granted full discretion to invest and reinvest all Assets under its management in any type of security it deems
appropriate, subject to the instructions given or guidelines set by OC SAN's Representative (defined below). CONSULTANT may direct the investments of the Assets and take such actions as it may deem appropriate in respect of the
Assets, with or without the prior consent from OC SAN.
(2) The investment authority granted to CONSULTANT shall include the authority to exercise whatever powers OC SAN may possess with respect to the Assets, including, but not limited to, the right to vote, the power to exercise rights, options, warrants, conversion privileges and redemption privileges, and to
tender securities pursuant to a tender offer. CONSULTANT shall be solely responsible for voting all proxies related to the Assets. CONSULTANT shall maintain a record of how it voted and such record shall be made available to OC
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SAN upon request. It is further understood that CONSULTANT need not and is not required to accept any direction concerning the voting of proxies from OC
SAN. The right of CONSULTANT to vote proxies shall continue until the earlier of the termination of this Agreement or such time as OC SAN specifically revokes CONSULTANT's authority to vote proxies and specifically reserves the right to OC SAN or to another. (c) Investment Criteria and Objectives. OC SAN will supply CONSULTANT with such information as CONSULTANT shall reasonably require concerning the Assets' tax position, liquidity requirements and other information useful in developing investment objectives. CONSULTANT will determine the asset allocation of investments for the Assets (the “Investment Strategy”) on the basis of information provided by OC SAN or other service providers, including the appropriate risk tolerance for the Assets based upon the cash needs of the Assets, the asset-liability characteristics and OC SAN’s resources. CONSULTANT shall prepare a recommended policy statement of the Assets’ Investment Strategy acceptable to OC
SAN to the extent necessary to accomplish the Assets’ Investment Strategy ("Investment Policy Statement"). CONSULTANT shall execute the Investment Strategy by instructing the Custodian (as hereinafter defined) to buy and sell shares of
investments permitted hereunder in accordance with the Investment Policy Statement, approved by the OC SAN Treasurer or designee. In addition, CONSULTANT shall ensure that the diversification requirements are met with regard to the Assets and that
the Assets conform to the investment categories defined in the Investment Policy Statement approved by OC SAN's Treasurer or designee. The CONSULTANT, in consultation with OC SAN, shall reassess and alter the Investment Strategy and Investment Policy Statement at least annually to the extent necessary to “rebalance the
Assets’ investments. (d) Transactions and Reporting. All investments shall be made on a "delivery vs. payment” basis. CONSULTANT shall confirm to OC SAN, in writing, all purchases, sales, exchanges and movements of Assets, within 2 business days of the effectuation of the same. CONSULTANT shall provide to OC SAN monthly, quarterly and/or annual written reports concerning its investment management activities as may be requested by OC SAN. CONSULTANT shall add or reduce allocations to each investment or add or delete investments in its judgment (to the extent permitted under the Investment Policy Statement), and promptly advise OCSAN of any additions or deletions of the Assets’
investments. (e) Attendance at Meetings. A representative of CONSULTANT will meet with OC
SAN's Representative to explain the investment management activities, and any reports related thereto, as may reasonably be requested by OC SAN. In addition, on a quarterly basis, a representative of CONSULTANT shall meet with OC SAN's Representatives and
on an annual basis with OC SAN's Administration Committee to review investment performance and proposed strategies. (f) Access to Records and Documents. All records and documents relating to the Assets' investments directed by CONSULTANT shall, upon reasonable advance notice, be made available for inspection or audit by OC SAN, or by a certified public accountant
acting on OC SAN's behalf, at CONSULTANT's business offices at any time during normal business hours.
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2. Custody of Assets.
(a) CONSULTANT shall present a custodian or custodial institution (Custodian) for the approval of the OC SAN Treasurer or designee. (b) Neither CONSULTANT nor any parent, subsidiary or related firm shall take possession of or handle any cash, securities, mortgages or deeds of trust, or other indicia of ownership of the Assets’ investments, or otherwise act as Custodian of such investments. The Custodian will collect the interest and dividends of the investments of the Assets in its custody and CONSULTANT shall have no responsibility in this regard. (c) OC SAN will instruct the Custodian to (i) periodically advise CONSULTANT as to the amount of cash or cash equivalents available for investment; (ii) carry out all investment transactions as may be directed, in writing, by CONSULTANT; and (iii) confirm all completed transactions, in writing, by way of a monthly statement, to CONSULTANT.
3. 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 notice to OC SAN. If OC SAN 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 OC SAN's request. CONSULTANT shall assign only competent personnel as described in Exhibit “A” to perform Services pursuant to this Agreement.
4. Term. The term of this Agreement shall commence as of the date first above written and shall continue until this Agreement is terminated as provided for in section 12 hereof. 5. Fees. [Fees are to be negotiated between OC SAN and CONSULTANT] 6. OC SAN Representative. In its capacity as investment manager, CONSULTANT shall receive all instructions, directions and other communications on OC SAN's behalf respecting OC SAN's Assets from OC SAN's Director of Finance or OC SAN's
Controller ("OC SAN's Representative"). CONSULTANT is hereby authorized to rely and act upon all such instructions, directions and communications from such OC SAN's Representative or any agent of such OC SAN’s Representative.
7. Notices.
(a) Written Notice. 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 3 days by written notice. Rejection or other refusal to accept or the inability to deliver because of changed address of 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:
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To OC SAN: Orange County Sanitation District Attn.: Director of Finance 10844 Ellis Avenue Fountain Valley, CA 92708-7018
To CONSULTANT: PFM Asset Management, LLC Attn.: Ellen Clark 44 Montgomery Street, 3rd Floor
San Francisco, CA 94104 Each Party shall provide the other Party written notice of any change in address as soon
as practicable. (b) Electronic Delivery. From time to time, CONSULTANT may be required to deliver certain documents to OC SAN such as account information, notices and required disclosures. OC SAN hereby consents to CONSULTANT's use of secured electronic means, such as encrypted email, to make such delivery. This delivery may include
notification of the availability of such document(s) on a secured website or web portal, and OC SAN agrees that such notification will constitute "delivery." OC SAN further agrees to provide CONSULTANT with OC SAN email address(s) and to keep this information current at all times by promptly notifying CONSULTANT of any change in email address(s). OC SAN email address(s):
Assistant General Manager and Director of Finance (Treasurer): LTYNER@OCSD.COM Controller: WRITCHIE@OCSD.COM 8. Liability. OC SAN recognizes that the opinions, recommendations and actions of CONSULTANT will be based on information deemed by it to be reliable, but not guaranteed to or by it. Provided that CONSULTANT acts in good faith, OC SAN agrees that CONSULTANT will not be liable for any error in judgment or for any act or
omission, except as may otherwise be provided for under the Federal Securities laws or other applicable law. 9. Payment of Commissions. It is the policy and practice of CONSULTANT to strive for the best price and execution and for commission and discounts that are competitive in relation to the value of the transaction and which comply with Section 28(e) of the
Securities and Exchange Act of 1934. Nevertheless, it is understood that CONSULTANT may pay a commission on transactions in excess of the amount another broker or dealer may charge, and that CONSULTANT makes no warranty or
representation regarding commissions paid on transactions hereunder. 10. Other Clients. It is further understood that CONSULTANT may be acting in a similar
capacity for other institutional and individual clients, and that investments and reinvestments for OC SAN's portfolio may differ from those made or recommended with respect to other accounts and clients even though the investment objectives may be the same or similar. Accordingly, it is agreed that CONSULTANT will have no obligation to purchase or sell for OC SAN's Assets any securities which it may purchase or sell for other clients.
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1552824.1
11. No Assignment. This Agreement may not be assigned by CONSULTANT without OC
SAN's consent. 12. Termination. OC SAN understands that it has the right to terminate this Agreement without penalty within 5 days after entering into this Agreement. If not so terminated, this Agreement may nevertheless be terminated by either Party without penalty upon 60 days prior written notice to the other. In the event of such termination by OC San, CONSULTANT shall return all OC San funds within sixty (60) days of receipt of said written notice. Termination will not affect the liabilities or obligations of the Parties arising from transactions initiated prior to termination. 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 Determined Insurance
Requirement Form, Exhibit “C“. CONSULTANT shall not commence work under this Agreement until all required insurance is obtained in a form acceptable to OC SAN, 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.
In addition to the requirements set forth in Exhibit “C”, during the term of this Agreement, CONSULTANT, at its sole cost and expense, shall carry and maintain the following insurance coverage with a company or companies acceptable to OC SAN: (a) Employee Dishonesty/Fidelity Bond. $10,000,000.00 policy limits. (b) Increased Insurance. At the time of renewal or amendment, OC SAN may request CONSULTANT to obtain additional insurance in amounts that are
standard in the industry for a firm of CONSULTANT’s size and volume. In the
event of CONSULTANT’s failure to do so, OC SAN may exercise its right to terminate this Agreement upon 15 days’ notice. (c) Conditions of Insurance. The provisions of this section apply to all policies of insurance required by this Agreement, including those set forth in Exhibit “C”, as
follows:
(1) The insurance shall be issued and underwritten by insurance
companies acceptable to OC SAN, which shall have an “A” policyholder’s rating (or better) and a financial rating not less than Class VII in
accordance with the most current Best’s Guide Rating and which shall be
authorized in the State of California to issue the lines of insurance specified.
(2) CONSULTANT may satisfy the limit requirements in a single policy or multiple policies, provided, however, that any such additional policies written as excess insurance shall have the same coverage (i.e., “following
form”) as CONSULTANT’s first or primary policy.
(3) Any costs accruing to CONSULTANT, which are attributable to a
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1552824.1
self-insured retention, deductibles or premium rating programs, which determine premium based on loss experience, shall be for the account of
CONSULTANT, and OC SAN shall not be required to participate in any such loss. If any such programs exist, CONSULTANT agrees to protect and defend OC SAN in the same manner as if such cost provisions were not applicable.
(4) CONSULTANT shall present at or prior to the time of execution of this Agreement, original certificates of insurance evidencing that the coverage required hereunder is in force and in compliance with the terms and conditions of this Agreement. A separately executed certificate shall be presented for each insurance carrier providing coverage. (d) Naming OC SAN as Co-Loss Payee. All employee dishonesty insurance coverage obtained by CONSULTANT, as required hereunder, shall name OC SAN as co-loss payee, and the issuing underwriter shall execute a co-loss payee
endorsement. (e) Claims Reporting. CONSULTANT has provided OC SAN with a declaration
regarding the total amount of all claims, against its errors and omissions and employee dishonesty insurance policies, for which any of CONSULTANT’s insurance carriers has established reserves. A copy of that declaration is
attached as Exhibit “D” hereto. CONSULTANT represents and warrants that the declaration remains true and correct as of the date of execution of this Agreement. On a semi-annual basis, CONSULTANT or its insurance carrier(s) shall provide OC SAN with an updated declaration of such claims and reserves. 14. Compliance with Political Reform Act of 1974. CONSULTANT understands and acknowledges that CONSULTANT is subject to the conflict of interest provisions of the Political Reform Act of 1974 (Government Code section 87100 et seq.) and the regulations implementing the same (California Code of Regulations Title 2, Division 6, Chapter 7). As a material provision of this Agreement, CONSULTANT shall comply with such conflict of interest provisions. Specifically, the "high-level" officers and employees of CONSULTANT who exercise primary responsibility for the Assets, such as principal investment or financial officers or managers (but excluding persons who work under the supervision of such principal investment or financial officers or managers) shall, in
compliance with Government Code section 87100 et seq. refrain from making, participating in, or influencing decisions affecting the Assets in which he/she knows or should know he/she has a financial interest, and shall file disclosure statements as
required by Government Code section 87200 et seq.
15. Governing Law and Venue. It is understood that this Agreement shall be governed by and
construed under and in accordance with the laws of the State of California. Venue for resolution of disputes shall be in Orange County. 16. Severability. Any provision of this Agreement which is prohibited or unenforceable shall be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof.
17. Receipt of Brochure and Privacy Policy. OC SAN has received the disclosure statement
or “brochure” required to be delivered pursuant to Rule 204-3 of the Investment Advisers
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1552824.1
Act of 1940, and a copy of CONSULTANT’S privacy policy.
18. Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OC SAN and CONSULTANT. 19. 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. 20. Entire Agreement; Amendment. 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. This Agreement may be amended at any time in writing by mutual agreement of the Parties.
21. Registered Advisor; Duty of Care. CONSULTANT hereby represents it is a registered investment advisor under the Investment Advisers Act of 1940. CONSULTANT will immediately notify OC SAN if at any time during the term of this Agreement it is not so registered or if its registration is suspended. CONSULTANT agrees to perform its duties and responsibilities under this Agreement with reasonable care. The federal securities
laws impose liabilities under certain circumstances on persons who act in good faith. Nothing herein in any way constitutes a waiver or limitation of any rights which OC SAN may have under any federal securities laws. OC SAN hereby authorizes CONSULTANT to sign an Internal Revenue Service Form W-9 on behalf of OC SAN and to deliver such form to broker-dealers or others from time to time as required in connection with securities transactions pursuant to this Agreement.
22. Force Majeure. CONSULTANT has no liability for any losses arising out of the delays in performing or inability to perform the services which it renders under this Agreement which result from events beyond its control, including interruption of the business
activities of CONSULTANT or other financial institutions due to acts of God, acts of governmental authority, acts of war, terrorism, civil insurrection, riots, labor difficulties, or any action or inaction of any carrier or utility, or mechanical or other malfunction.
23. Disciplinary Actions. CONSULTANT will promptly notify OC SAN if CONSULTANT is found to have violated any state or federal securities law or regulation in any final and
unappealable judgment in any criminal action or civil suit in any state or federal court or in any disciplinary proceeding before the Securities and Exchange Commission or any other regulatory agency or department of the United States, any registered securities
exchange, the Financial Industry Regulatory Authority, or any regulatory authority of any State based upon the performance of services as an investment advisor. 24. Independent Contractor. CONSULTANT, its employees, officers and representatives,
will not be deemed to be employees, agents (except as to the purchase or sale of securities described in Section 1), partners, servants, and/or joint ventures of OC SAN or the Account by virtue of this Agreement or any actions or services rendered under
this Agreement.
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25. Records. CONSULTANT will maintain appropriate records of all its activities hereunder.
CONSULTANT will use its best efforts to provide OC SAN with a statement within 60 days following the end of each calendar quarter showing deposits, withdrawals, purchases and sales (or maturities) of investments, earnings received during the quarter, and the value of assets held on the last business day of the calendar quarter, based on the information requested from and furnished to it by the Custodian. [SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by the duly authorized representatives.
ORANGE COUNTY SANITATION DISTRICT Dated: _________________ By______________________________ John B. Withers Board Chairman Dated: _________________ By______________________________
Kelly A. Lore Clerk of the Board
Dated: _________________ By______________________________ Ruth Zintzun Purchasing & Contracts Manager PFM ASSET MANAGEMENT, LLC Dated: _________________ By: ___________________________________
______________________________________ Print Name and Title of Officer
Exhibits: Exhibit “A” – Scope of Work Exhibit “B” – Proposal Exhibit “C” – Determined Insurance Requirement Form
Exhibit “D” – Declaration
0
-r -
OCSAN 21-XX-1
RESOLUTION NO. OC SAN 21-XX
A RESOLUTION OF THE BOARD OF DIRECTORS OF
ORANGE COUNTY SANITATION DISTRICT ADOPTING A POST-EMPLOYMENT BENEFIT TRUST AGREEMENT WITH CHANDLER ASSET MANAGEMENT, INC.; AND AUTHORIZING OFFICERS TO EXECUTE DOCUMENTS
AND AGREEMENTS
WHEREAS, it is the desire of the Orange County Sanitation District Board of Directors to adopt a Post-Employment Benefits Trust Agreement.
WHEREAS, Chandler Asset Management, Inc. (“Chandler”) has offered a Post-
Employment Benefits Trust Agreement acceptable to the Orange County Sanitation District. WHEREAS, Chandler is qualified and capable of performing the services of both Trust Administrator and Trustee.
NOW THEREFORE, the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1:
A. Adopt the Post-Employment Benefits Trust Agreement with Chandler as Trust Administrator and directed Trustee; and B. Authorize the General Manager or his delegate to execute the necessary
documents and agreements to signify its adoption including, but not limited to, an Adoption Agreement and Trust Administrative Services Agreement; and C. Approve, ratify, and confirm the appointment of Chandler as Trustee and Trust Administrator as of the effective date of the Adoption Agreement.
Section 2: This Resolution shall become effective immediately. PASSED AND ADOPTED at a regular meeting of the Board of Directors held
November 17, 2021. _______________________________ John B. Withers
Board Chairman
OCSAN 21-XX-2
ATTEST:
__________________________ Kelly A. Lore, MMC Clerk of the Board
APPROVED AS TO FORM:
___________________________
Bradley R. Hogin General Counsel
OCSAN 21-XX-3
STATE OF CALIFORNIA )
) ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District,
do hereby certify that the foregoing Resolution No. OC SAN 21-XX was passed and adopted at a regular meeting of said Board on the 17th day of November 2021, by the following vote, to wit:
AYES:
NOES:
ABSTENTIONS: ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
Orange County Sanitation District this 17th day of November 2021.
Kelly A. Lore, MMC
Clerk of the Board of Directors Orange County Sanitation District
OCSAN 21-XX-1
RESOLUTION NO. OC SAN 21-XX
A RESOLUTION OF THE BOARD OF DIRECTORS OF
ORANGE COUNTY SANITATION DISTRICT ADOPTING A POST-EMPLOYMENT BENEFIT TRUST AGREEMENT WITH PUBLIC AGENCY RETIREMENT SERVICES; AND AUTHORIZING OFFICERS TO EXECUTE DOCUMENTS
AND AGREEMENTS
WHEREAS, it is the desire of the Orange County Sanitation District Board of Directors to adopt a Post-Employment Benefits Trust Agreement.
WHEREAS, Phase II Systems, doing business as Public Agency Retirement
Services (“PARS”) has offered a Post-Employment Benefits Trust Agreement acceptable to the Orange County Sanitation District. WHEREAS, PARS is qualified and capable of performing Trust Administration services.
WHEREAS, PARS will present a Trustee acceptable to the District. NOW THEREFORE, the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1: A. Adopt the Post-Employment Benefits Trust Agreement with PARS as Trust Administrator; and
B. Authorize the General Manager or his delegate to execute the necessary documents and agreements necessary to select a Trustee as presented by PARS; and
C. Authorize the General Manager or his delegate to execute the necessary documents and agreements to signify its adoption including, but not limited to, an Adoption Agreement and Trust Administrative Services Agreement; and D. Approve, ratify, and confirm the appointment of PARS as Trust Administrator
as of the effective date of the Adoption Agreement. Section 2: This Resolution shall become effective immediately.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held November 17, 2021.
OCSAN 21-XX-2
_______________________________
John B. Withers
Board Chairman ATTEST:
__________________________ Kelly A. Lore, MMC Clerk of the Board
APPROVED AS TO FORM: ___________________________
Bradley R. Hogin General Counsel
OCSAN 21-XX-3
STATE OF CALIFORNIA )
) ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OC SAN 21-XX was passed and adopted at a regular meeting of said Board on the 17th day of November 2021, by the
following vote, to wit:
AYES:
NOES: ABSTENTIONS: ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 17th day of November 2021.
Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District
OCSAN 21-XX-1
RESOLUTION NO. OC SAN 21-XX
A RESOLUTION OF THE BOARD OF DIRECTORS OF
ORANGE COUNTY SANITATION DISTRICT ADOPTING A POST-EMPLOYMENT BENEFIT TRUST AGREEMENT; AND AUTHORIZING OFFICERS TO EXECUTE DOCUMENTS AND AGREEMENTS
WHEREAS, it is the desire of the Orange County Sanitation District Board of Directors to adopt a Post-Employment Benefits Trust Agreement. WHEREAS, PFM Asset Management, LLC (“PFM”) has offered a Post-
Employment Benefits Trust Agreement acceptable to the Orange County Sanitation
District. WHEREAS, PFM is qualified and capable of performing Trust Administration services.
WHEREAS, PFM has selected Wells Fargo Bank, N.A. (“Wells Fargo”) as Trustee. NOW THEREFORE, the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1: A. Adopt the Post-Employment Benefits Trust Agreement between PFM as Trust Administrator and Wells Fargo as directed Trustee; and
B. Authorize the General Manager or his delegate to execute the necessary documents and agreements to signify its adoption including, but not limited to, an Adoption Agreement and Trust Administrative Services Agreement; and C. Approve, ratify, and confirm the appointment of Wells Fargo as Trustee and
PFM as Trust Administrator as of the effective date of the Adoption Agreement. Section 2: This Resolution shall become effective immediately.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held November 17, 2021. _______________________________
John B. Withers Board Chairman
OCSAN 21-XX-2
ATTEST:
__________________________ Kelly A. Lore, MMC Clerk of the Board
APPROVED AS TO FORM:
___________________________ Bradley R. Hogin General Counsel
OCSAN 21-XX-3
STATE OF CALIFORNIA )
) ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OC SAN 21-XX was passed and adopted at a regular meeting of said Board on the 17th day of November 2021, by the following vote, to wit:
AYES:
NOES: ABSTENTIONS: ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 17th day of November 2021.
Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1955 Agenda Date:11/10/2021 Agenda Item No:12.
FROM:James D. Herberg, General Manager
Originator: Celia Chandler, Director of Human Resources
SUBJECT:
HUMAN RESOURCES DEPARTMENT OVERVIEW
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION:
Information Item.
BACKGROUND
Each month, staff provides an informational presentation on topics of interest to the Board of
Directors. This month’s topic: Orange County Sanitation District Human Resources Department
Overview.
RELEVANT STANDARDS
·Cultivate a highly qualified, well-trained, and diverse workforce
·Plan for and execute succession, minimizing vacant position times
·Provide professional growth and development
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
·Presentation
Orange County Sanitation District Printed on 11/3/2021Page 1 of 1
powered by Legistar™
OC6SAN
ORANGE COUNTY SANITATION DISTRICT
11/1/2021
1
Human Resources:
Department Overview
Presented By:
Laura Maravilla,
Human Resources
& Risk Manager
Administration
Committee
November 10, 2021
The Human Resources Department is comprised
of three main areas:
Overview
HR Operations
Risk Management
Employee &
Labor
Relations
2
1
2
11/1/2021
2
Highlight: OC San University
Technology
Leadership
OC San
Business
Systems
Communication
Partnerships
for the Future
3
4
Highlight: C&C Study
Finalize Compensation Structure
Compensation Survey
Finalize Classifications
Class Description Review
Employee / Management Interviews
Position Description Questionnaires
3
4
I_I □0 ■1 _1 IL.,_________ I
11/1/2021
3
5
Highlight: Negotiations
Orange County
Employees Association
International Union of
Operating Engineers ‐
501
Supervisory &
Professional
Management Group
Unrepresented
SPMG
(275)
Local
501
(200)
OCEA
(96)
Unrepresented
(36)
Succession Management
100%
43%46%
25%
40%
28%
100%
71%
60%
37%
53%
42%
0%
20%
40%
60%
80%
100%
EXECUTIVE MANAGER SUPERVISOR PROFESSIONAL PARA‐
PROFESSIONAL
TRADES
2021 2024
6
5
6
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■
■
■
■ ■
11/1/2021
4
Questions
?
7
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ORANGE COUNTY SANITATION DISTRICT
COMMON ACRONYMS
ACWA Association of California
Water Agencies LOS Level Of Service RFP Request For Proposal
APWA American Public Works
Association MGD Million Gallons Per Day RWQCB Regional Water Quality
Control Board
AQMD Air Quality Management
District MOU Memorandum of
Understanding SARFPA Santa Ana River Flood
Protection Agency
ASCE American Society of Civil Engineers NACWA National Association of Clean Water Agencies SARI Santa Ana River Interceptor
BOD Biochemical Oxygen Demand NEPA National Environmental Policy
Act SARWQCB Santa Ana Regional Water
Quality Control Board
CARB California Air Resources
Board NGOs Non-Governmental
Organizations SAWPA Santa Ana Watershed
Project Authority
CASA California Association of
Sanitation Agencies NPDES National Pollutant Discharge
Elimination System SCADA Supervisory Control And
Data Acquisition
CCTV Closed Circuit Television NWRI National Water Research
Institute SCAP
Southern California
Alliance of Publicly Owned Treatment Works
CEQA California Environmental
Quality Act O & M Operations & Maintenance SCAQMD South Coast Air Quality
Management District
CIP Capital Improvement
Program OCCOG Orange County Council of
Governments SOCWA South Orange County
Wastewater Authority
CRWQCB California Regional Water
Quality Control Board OCHCA Orange County Health Care
Agency SRF Clean Water State
Revolving Fund
CWA Clean Water Act OCSD Orange County Sanitation District SSMP Sewer System Management Plan
CWEA California Water Environment Association OCWD Orange County Water District SSO Sanitary Sewer Overflow
EIR Environmental Impact Report OOBS Ocean Outfall Booster Station SWRCB State Water Resources
Control Board
EMT Executive Management Team OSHA Occupational Safety and
Health Administration TDS Total Dissolved Solids
EPA US Environmental Protection Agency PCSA
Professional
Consultant/Construction
Services Agreement
TMDL Total Maximum Daily Load
FOG Fats, Oils, and Grease PDSA Professional Design Services
Agreement TSS Total Suspended Solids
gpd gallons per day PFAS
Per- and Polyfluoroalkyl
Substances WDR Waste Discharge
Requirements
GWRS Groundwater Replenishment
System PFOA Perfluorooctanoic Acid WEF Water Environment
Federation
ICS Incident Command System PFOS Perfluorooctanesulfonic Acid WERF Water Environment & Reuse Foundation
IERP Integrated Emergency
Response Plan POTW Publicly Owned Treatment
Works WIFIA Water Infrastructure
Finance and Innovation Act
JPA Joint Powers Authority ppm parts per million WIIN Water Infrastructure Improvements for the
Nation Act
LAFCO Local Agency Formation
Commission PSA Professional Services
Agreement WRDA Water Resources
Development Act
ORANGE COUNTY SANITATION DISTRICT
GLOSSARY OF TERMS
ACTIVATED SLUDGE PROCESS – A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater.
BENTHOS – The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone.
BIOCHEMICAL OXYGEN DEMAND (BOD) – The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water.
BIOGAS – A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used
as a fuel.
BIOSOLIDS – Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for
commercial and home gardens to improve and maintain fertile soil and stimulate plant growth.
CAPITAL IMPROVEMENT PROGRAM (CIP) – Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities.
COLIFORM BACTERIA – A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater.
COLLECTIONS SYSTEM – In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water.
CERTIFICATE OF PARTICIPATION (COP) – A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues.
CONTAMINANTS OF POTENTIAL CONCERN (CPC) – Pharmaceuticals, hormones, and other organic wastewater contaminants.
DILUTION TO THRESHOLD (D/T) – The dilution at which the majority of people detect the odor becomes the D/T for that air sample.
GREENHOUSE GASES (GHG) – In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming (“greenhouse effect”).
GROUNDWATER REPLENISHMENT SYSTEM (GWRS) – A joint water reclamation project that proactively responds to Southern California’s current and future water needs. This joint project between the Orange County Water District and OCSD provides 70
million gallons per day of drinking quality water to replenish the local groundwater supply.
LEVEL OF SERVICE (LOS) – Goals to support environmental and public expectations for performance.
N-NITROSODIMETHYLAMINE (NDMA) – A N-nitrosamine suspected cancer-causing agent. It has been found in the GWRS
process and is eliminated using hydrogen peroxide with extra ultra-violet treatment.
NATIONAL BIOSOLIDS PARTNERSHIP (NBP) – An alliance of the NACWA and WEF, with advisory support from the EPA. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance.
PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) – A large group (over 6,000) of human-made compounds that are resistant to heat, water, and oil and used for a variety of applications including firefighting foam, stain and water-resistant clothing, cosmetics, and food packaging. Two PFAS compounds, perfluorooctanesulfonic acid (PFOS) and perfluorooctanoic acid (PFOA) have been the focus of increasing regulatory scrutiny in drinking water and may result in adverse health effects including developmental effects to fetuses during pregnancy, cancer, liver damage, immunosuppression, thyroid effects, and other effects.
PERFLUOROOCTANOIC ACID (PFOA) – An ingredient for several industrial applications including carpeting, upholstery, apparel, floor wax, textiles, sealants, food packaging, and cookware (Teflon).
PERFLUOROOCTANESULFONIC ACID (PFOS) – A key ingredient in Scotchgard, a fabric protector made by 3M, and used in numerous stain repellents.
PLUME – A visible or measurable concentration of discharge from a stationary source or fixed facility.
PUBLICLY OWNED TREATMENT WORKS (POTW) – A municipal wastewater treatment plant.
SANTA ANA RIVER INTERCEPTOR (SARI) LINE – A regional brine line designed to convey 30 million gallons per day of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment.
SANITARY SEWER – Separate sewer systems specifically for the carrying of domestic and industrial wastewater.
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD) – Regional regulatory agency that develops plans and
regulations designed to achieve public health standards by reducing emissions from business and industry.
SECONDARY TREATMENT – Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater.
SLUDGE – Untreated solid material created by the treatment of wastewater.
TOTAL SUSPENDED SOLIDS (TSS) – The amount of solids floating and in suspension in wastewater.
ORANGE COUNTY SANITATION DISTRICT
GLOSSARY OF TERMS
TRICKLING FILTER – A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them.
URBAN RUNOFF – Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans.
WASTEWATER – Any water that enters the sanitary sewer.
WATERSHED – A land area from which water drains to a particular water body. OCSD’s service area is in the Santa Ana River Watershed.