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Home My WebLink About1998-01-21. __ _:D In the Office of the Secreta. Counz Sanitation District;s ~ .I(.( No(s) ,.,Z,3S~w,Zt, tT"/1 DRAFT County Sanitation Districts of Orange County, California P.O. Box 8127 • 10844 Ellis Avenue Fountain Valley, CA 92728-8127 Telephone: (714) 962-2411 :::.r fl 2 81998 By _..e)f_....!.A~ '-----;-;::;-; MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Wednesday, January 21, 1998, 5:30 P.M. A meeting of the Finance, Administration and Human Resources Committee of the County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California was held on Wednesday, January 21, 1998, at 5:30 p.m., at the Districts' Administrative Offices. ROLL CALL The roll was called and a quorum declared present, as follows: Committee Directors Present: George Brown, Chair John J. Collins, Joint Chair Barry Denes Norman Z. Eckenrode Mark Leyes Thomas R. Saltarelli Mark Schwing Peer Swan, Vice Joint Chair Committee Directors Absent : Jan Debay Mark A Murphy William G. Steiner Other Directors Present: None APPOINTMENT OF A CHAIR PRO TEM No appointment was necessary. PUBLIC COMMENTS No comments were made. APPROVAL OF MINUTES Staff Present: Blake Anderson, Assistant General Manager Gary Streed, Director of Finance Mike Peterman, Director of Human Resources David Ludwin, Director of Engineering Nancy Wheatley, Director of Technical Services Michelle Tuchman, Director of Communications Greg Mathews, Principal Administrative Analyst Mike White, Controller Steve Kozak, Financial Manager Jim Herberg, Engineering Supervisor Lisa Lorey, Human Resources Manager Lenora Crane, Committee Secretary Others Present: Toby Weissert, Corolla Engineers The minutes of December 10, 1997, meeting of the Finance, Administration and Human Resources Committee were approved as drafted. Minutes of Finance, Admin. and Human Resources Committee Page2 ) January 21, 1998 REPORT OF THE COMMITTEE CHAIR The Committee Chair had no report. REPORT OF THE GENERAL MANAGER • Assistant General Manager Blake Anderson advised the Committee that staff is looking ahead toward the 1998-99 budget. Staff discussions have already begun on prioritizing the capital budget. Workshops and Committee meetings to review both the capital program and the entire operating budget are expected to be held in the next few months. REPORT OF THE DIRECTOR OF FINANCE • Director of Finance Gary Streed informed the Committee that the Districts' User Fee Ordinance became effective on January 16, 1998. The Ordinance more clearly defines rebates and refunds. We mailed a copy of the Ordinance, along with a letter explaining the differences, to those firms which are aggressively pursuing adjustments. We received our first phone call from one of the firms today; more calls are expected to follow. • In the last month, we have received notice from the GFOA that last year's budget was approved, and will be awarded the Certificate for Excellence in budgetary reporting, along with several very favorable comments. REPORT OF THE DIRECTOR OF HUMAN RESOURCES The Director of Human Resources had no report. REPORT OF THE DIRECTOR OF COMMUNICATIONS • Director of Communications Michelle Tuchman updated the Committee on the Districts' consolidation efforts. LAFCO will hear our application for consolidation on February 11th. We are on schedule for the July 1 consolidation target date. • Since the last meeting, David Parrish, a Register reporter, has requested a "laundry list" of information requests. One of the requests was for all of the information on the Districts' computer loan program, and the names of all of the employees participating in the program and their titles. All of the employees who are participating in the program have been notified that this information was given to the Register. We are still working on providing him with information that he has requested on travel expenses and any other extraordinary reimbursements. • A Strategic Plan Review meeting is scheduled for next Wednesday at 5:30 p.m., immediately preceding the regular Board meeting. • There will be a New Board Member Orientation meeting on January 31, which is for new Board members as well as the Alternate Directors. Minutes of Finance, Admin. and Human Resources Committee Page 3 January 21, 1998 In response to Chair Brown's inquiry, Director John Collins (JC) advised that the Steering Committee will meet as regularly scheduled, since most of the Steering Committee members are familiar with the information that will be discussed at the Strategic Plan Review meeting. REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff advised that Monday was the last date any of the employees involved in the drug investigation could file a lawsuit against the Districts, due to the statue of limitations in this matter. No additional suits have been filed, and there is only one case still pending. CONSENT CALENDAR ITEMS (1 -2} 1. FAHR98-01: RECEIVE AND FILE TREASURER'S REPORT FOR THE MONTH OF DECEMBER 1998, AND FORWARD TO THE JOINT BOARDS 2. FAHR98-02: Receive and file Certificates Of Participation (COP) Report END OF CONSENT CALENDAR MOTION: It was moved, seconded and duly carried to approve the recommended actions for items specified as 1 through 2 under "Consent Calendar." ACTION ITEMS (Nos. 3 -7) 3. FAHR98-03: Approve Resolution No. XX, Approving Revisions to the Deferred Compensation Program for the Executive Management Group Employees (General Manager, Assistant General Managers and Department Heads) and Management, Professional and Supervisory Employees of the Districts, and Repealing Resolution No. 95-81 Director John Collins (JC) requested that his abstention from discussion and voting on this matter be made a matter of record, as well as his absence from the conference room during the Committee's consideration of this item. COMMITTEE DISCUSSION: Tom Woodruff, General Counsel, reviewed the proposed two revisions to the Districts' existing Deferred Compensation Program, which are to 1) remove the 3-year vesting period which he has determined to be in conflict with the California Supreme Court decision in Ventura; and 2) a non-substantive language change which redefines employer "contributions" to "supplementary salary'' in order to satisfy the requirements of law as set forth by the Supreme Court. This will allow employer contributions to continue to be counted towards "final compensation" for Districts' employees in the Orange County Employees Retirement System. Discussion took place regarding the pros and cons of the three options presented to the Committee, the differences between 401 K and 457 plans, the difference in the way the private and public sectors allocate their matching benefit portions of these plans to retirement funds, and the legality of making the recommended changes. MOTION: It was moved, seconded and duly carried to approve Option No. 1, to do nothing, with the stipulation that we do not include the employer matching funds benefit in employee salary calculations to OCERS for final compensation purposes. Minutes of Finance, Admin. and Human Resources Committee Page4 1) January 21, 1998 Director Swan requested that staff solicit a third opinion on the Plan and vesting requirements. 4. FAHR98-04: Approve Ordinance No. 135, Providing For an Early Retirement Incentive Program by Granting Additional Service Credit to Eligible District Employees as Authorized by the County Employees Retirement Law of 1937, Government Code Section 31641.04 COMMITTEE DISCUSSION: Human Resources Director Mike Peterman reported that the proposed Ordinance would provide an early retirement incentive program to eligible Districts' employees as authorized by the County Employees' Retirement Law of 1937, and Government Code Section 31641.04. The Districts' Five-Year Staffing Plan calls for the reduction of an additional 25 employees. The Boards approved all Early Retirement Incentive Programs brought before them for each of the last three fiscal years. During those three years, 26 employees have retired early with only three positions refilled. The Districts' estimated savings are expected to be $4.4 million through fiscal year 1999. Discussion took place regarding early retirement incentives used in the private sector. MOTION: It was moved, seconded and duly carried, with one no vote, to recommend that the Joint Boards approve Ordinance No. 135, Providing For an Early Retirement Incentive Program by Granting Additional Service Credit to Eligible District Employees as Authorized by the County Employees Retirement Law of 1937, Government Code Section 31641.04 5. FAHR98-05: Approve the assignment of the implementation portion of the J. D. Edwards Financial Information System (FIS} Contract to Enterprise Technologies COMMITTEE DISCUSSION: Controller Mike White gave an overview of the Districts' Financial Information System (FIS) implementation program and the costs previously authorized by the Joint Boards for this project for hardware, software licenses, system installation, training and data conversion Since the Financial Information System agreement was entered into with J.D. Edwards in October of 1996, various changes in the company's strategies has led to a decline in the overall project management services provided to the Districts. J.D. Edwards has encouraged us to replace them with one of their business partners. Therefore, the Finance Department conducted interviews with three of J.D. Edwards' business partners. Of the three, Enterprise Technologies was determined to be the best firm to complete the project. During discussion, the Committee had numerous questions regarding the J.D. Edwards contract, whether legal action should be taken against them, whether all or part of their contract will be assigned. The Committee questioned the reasons for the change in the project completion date, and the specifics of the original contract. The Committee was interested in obtaining background information on Enterprise Technologies, how many people will be working on the project, if it is assigned to them, the number of hours they plan to work on the project and estimated costs. MOTION: It was moved, seconded and duly carried, with one no vote, to table this item to the February meeting. Minutes of Finance, Admin. and Human Resources Committee Page 5 ~ January 21, 1998 The Committee requested that staff provide them with an abstract of the contract, a cost analysis of what has been spent, what has been obligated, how much is left. They requested schedules showing how much of the work has been completed and a background report on Enterprise Technologies. It was also requested that staff invite the owner of Enterprise Technologies to attend the next meeting to answer questions of the Committee. 6. FAHR98-06: 1. Approve Addendum No. 2 to the Professional Services Agreement with Camp Dresser & McKee, Inc., for preparation of Phase 2 of the Strategic Plan Treatment, Disposal and Reuse Plan, Job No. J-40-3, to provide additional planning and design services in the amount of $397,239, for a total amount not to exceed $1,085,749; and 2. Extend the contract duration for an additional six months to April 1999. COMMITTEE DISCUSSION: Jim Herberg, Engineering Supervisor, gave an overview of the project and the additional work proposed in Addendum No. 2. He advised that the issues have been discussed with the Ad Hoc Committee and they have concurred with staffs analysis and proposed revisions to the project. Total additional fees for the work is $397,239, approximately 15% of CDM's existing budget for Phases 1 and 2 of the Strategic Plan. Additional Work Items consist of Planning/Permit Assumptions $299,233; Additional Public Participation (PAC 2) $46,969 and Rate Structure Issues $51,037. Technical Services Director Nancy Wheatley advised that the EPA requirements regarding the discharge requirements is a very important part of the change. Staff clarified that the changes to the project concern Phase 2 of the Strategic Plan. MOTION: It was moved, seconded and duly carried to recommend that the Joint Boards approve Addendum No. 2 to the Professional Services Agreement with Camp Dresser & McKee, Inc., for preparation of Phase 2 of the Strategic Plan (Treatment, Disposal and Reuse Plan), Job No. J-40-3, to provide additional planning and design services in the amount of $397,239, for a total amount not to exceed $1,085,749; and 2. Extend the contract duration for an additional six months to April 1999 7. FAHR98-07: Award contract for Job No. P2-70, Replacement of Construction Management Trailers at Plant No. 2, to Space Leasing Company, Inc., in an amount not to exceed $183,989 MOTION: It was moved, seconded and duly carried to recommend that the Joint Boards award the contract for Job No. P2-70, Replacement of Construction Management Trailers at Plant No. 2, to Space Leasing Company, Inc., in an amount not to exceed $183,989 INFORMATIONAL PRESENTATIONS None. CLOSED SESSION There was no closed session. Minutes of Finance, Admin:,AQd Human Resources Committee Page 6 , ) January 21, 1998 OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY None. MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING None. MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT None. FUTURE MEETING DATES The next Finance, Administration and Human Resources Committee Meeting is scheduled for Wednesday, March 11, 1998, at 5:30 p.m. ADJOURNMENT The meeting was adjourned at 6:58 p.m. Submitted by: ~btMLL/ Finance, Administration and Human Resources Committee Secretary \\RADON\DATA 1 \WP .DTA\FIN\21 0\CRANE\FAHR\FAHR98UAN\1-98MIN.DOC STA TE OF CALIFORNIA ) ) ss. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, I hereby certify that the Notice and the Agenda for the Finance, Administration and Human Resources meeting held on January 21, 1998, was duly posted for public inspection in the main lobby of the Districts' offices on January 15, 1998. IN WITNESS WHEREOF, I have hereunto set my hand this 21st day of January 1998. Penny Kyle, Secretary of ea County Sanitation Districts of Orange County, California Boards of Directors of I 3, 5, 6, 7 I 11, 13 & 14 Posted: fl• / ~ , 1998, 1:3D §P.M. By: ~~~ H :\wp.dta\fin\21 O\crane\FAHR\FAHR9B\JAN\C ERTPO 1 ·98.doc phone: (71 4) 962-2411 mailrng address: PD. Bol! 8127 Ftil.!ntain Valley, CA 92728-8127 $1:i'eet addr®~ 10844 Ellis Aveni.la Fountain Valley, DA· 92708-70~8 Member Agencies • Cltll\lB Ansheim Brea Buana Par/c Oypress Fountsin VslleJ Ful(artpn Huntingwn Beach /17'Vine La Habra La Pslma Los Alemit:os Newpora Besch Orange Placem:,e Santis Ana Seal Besoh Stsnton Tuscfn VIiia Pt!r'k Yorba-I.Jnda County of Orange Sanitary Districts Costa Mess Gs1'den Grove Midway Clt:y, Water Districts Irvine Rench COUNTY 5.JJITATION DISTRICTS OF •RA;)E COUNTY, CALIFORNIA January 14, 1998 NOTICE OF MEETING FINANCE. ADMINISTRATION AND HUMAN RESOURCES COMMITTEE COUNTY SANITATION DISTRICTS NOS. 1, 2, 3, 5, 6, 7, 11, 13 AND 14 OF ORANGE COUNTY, CALIFORNIA WEDNESDAY, JANUARY 21, 1998 -5:30 P.M . DISTRICTS' ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708 A regular meeting of the Finance, Administration and Human Resources Committee of the Joint Boards of Directors of County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California, will be held at the above location, time and date. A Public Wastewater and Environmental Management Agency Committed to Protecting the Environment Since 1954 FINANCE. ADMINISTRATION AND HUMAN RESOURCES COMMITTEE TENTATIVELY SCHEDULED MEETING DATES FAHR Committee Joint Board Month Meetings Meetings January January 21, 1998 January 28, 1998 February February 11, 1998 February 25, 1998 March March 11, 1998 March 25, 1998 April April 8, 1998 April 22, 1998 May May 13, 1998 May 27, 1998 June June 10, 1998 June 24, 1998 July July 8, 1998 July 29, 1998 August August 12, 1998 August 26, 1998 September September 9, 1998 September 30, 1998 October October 14, 1998 October 28, 1998 November None Scheduled November 18, 1998 December December 9, 1998 December 16, 1998 January None Scheduled January 27, 1999 r ) AGENDA REGULAR MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE COUNTY SANITATION DISTRICTS NOS.1, 2, 3, 5, 6, 7, 11, 13AND 14 OF ORANGE COUNTY, CALIFORNIA WEDNESDAY, JANUARY 21, 1998, AT, 5:30 P.M. ROLL CALL ADMINISTRATIVE OFFICES 10844 Ellis Avenue Fountain Valley, California 92708 APPOINTMENT OF CHAIR PRO TEM, IF NECESSARY AGENDA In accordance with the requirements of California Government Code Section 54954.2, this age!lda has been posted in the main lobby of the Districts' Administrative Offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the Office of the Board Secretary. In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or that there is a need to take immediate action which need came to the attention of the Committee subsequent to the posting of the agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. PUBLIC COMMENTS All persons wishing to address the Finance, Administration and Human Resources Committee on specific agenda items or matters of general interest should do so at this time. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to five minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). January 21, 1998 RECEIVE. Fil£ AND APPROVE MINUTES OF PREVIOUS MEETING ~e<::ommended Action: Consideration of motion to receive, file and approve draft minutes of the December 10, 1997, Finance, Administration and Human Resources Committee meeting. REPORT OF COMMITTEE CHAIR REPORT OF GENERAL MANAGER REPORT OF DIRECTOR OF FINANCE REPORT OF DIRECTOR OF HUMAN RESOURCES REPORT OF DIRECTOR OF COMMUNICATIONS REPORT OF GENERAL COUNSEL CONSENT CALENDAR ITEMS All matters placed on the consent calendar are considered as not requiring discussion or further explanation and unless any particular item is requested to be removed from the consent calendar by a Director, staff member or member of the public in attendance, there will be no separate discussion of these items. All items on the consent cal~ndar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included Ion the consent calendar. All items removed from the consent calendar shall be considered in the regular order of I business. l Members of the public who wish to remove an item from the consent calendar shall, upon recognition by the chair, state their name, address and designate by number the item to be removed from the consent calendar. The Chair will determine if any items are to be deleted from the consent calendar. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: 1. FAHR98-01: Receive and file Treasurer's Report for the month of DecelT!ber 1997: (All Districts). 2. FAHR98-02: Receive and file Certificates of Participation (COP) Monthly Report (All Districts). END OF CONSENT CALENDAR Consideration of items deleted from Consent Calendar, if any. -2- ,)'t January 21, 1998 ACTION ITEMS 3. FAHR98-03: Approve Resolution No. XX, Approving Revisions to the Deferred Compensation Program for the Executive Management Group Employees (General Manager, Assistant General Managers and Department Heads) and Management, Professional and Supervisory Employees of the Districts, and Repealing Resolution No. 95-81 (All Districts). (Tom Woodruff -20 minutes) 4. FAHR98-04: Approve Ordinance No. 135, Providing For an Early Retirement Incentive Program by Granting Additional Service Credit to Eligible District Employees as Authorized by the County Employees Retirement Law of 1937, Government Code Section 31641.04 (All Districts) (Mike Peterman -10 minutes) 5. FAHR98-05: Approve the assignment of the implementation portion of the J. D. Edwards Financial Information System (FIS) Contract to Enterprise Technologies (All Districts) (Mike White -10 minutes) 6. FAHR98-06: 1. Approve Addendum No. 2 to the Professional Services Agreement with Camp Dresser & McKee, Inc., for preparation of Phase 2 of the Strategic Plan, Job No. J-40-3, to provide additional planning and design services at an estimated $300,000 to $400,000 increase in total consulting fees for the Strategic Plan. Although the additional fee has not been finalized at this writing, it will be provided to the Committee prior to January 21. 2. Extend the contract duration for an additional six months to April 999. (All Districts) (Jim Herberg/David Ludwin -20 minutes) 7. FAHR98-07: Award contract for Job No. P2-70, Replacement of Construction Management Trailers at Plant No. 2, to Space Leasing Company, Inc., in an amount not to exceed $183,989. (All Districts) (David Ludwin -5 minutes) -3- January 21, 1998 INFORMATIONAL PRESENTATIONS None. CLOSED SESSION During the course of conducting the business set forth on this agenda as a regular meeting of the Committee, the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employee actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Committee during a permitted closed session and are not available for public inspection. M such time as final actions are taken by the Committee on any of these subjects, the minutes will reflect all requjred disclosures of informatior;i. 8. Closed Session a. Convene in closed session, if necessary. b. Reconvene in regular session. c. Consideration of action, if any, on matters considered in closed session. d. Report on discussion taken in closed session, as required. OTHER BUSINESS, COMMUNICATION'S OR SUPPLEMENTAL AGENDA ITEMS, IF ANY MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING MATTERS WHICH A DIRECTOR MAY WISH TO PLACE 0N A FUTURE AGENDA FOR ACTION AND STAFF REPORT FUTURE MEETING DATES The next Finance, Administration and Human Resources Committee Meeting is scheduled for February 11, 1998. NOTICE TO COMMITTEE MEMBERS If you have any questions on the agenda or wish to place any items on the agenda, Committee members should contact the Committee Chair or Secretary ten days in advance of the Committee meeting. Committee Chair: Comm. Secretary: le George Brown Lenora Crane -4- (562) 431-2185 (714) 962-2411, Ext. 2501 (714) 962-3954 (FAX) ROLL CALL FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING DATE: January 21, 1998 TIME: 5:30 P .M. ADJOURN: P.M. COMMITTEE MEMBERS GEORGE BROWN (CHAIR) .......................................................... . JOHN J. COLLINS (JC) ................................................................. . JAN DEBAY .................................................................................. . BARRY DENES ............................................................................. . NORMAN ECKENRODE ............................................................... . MARKLEYES ............................................................................... . MARK MURPHY ........................................................................... . THOMAS SALTARELLI ................................................................ . MARK SCHWING .......................................................................... . WILLIAM STEINER ....................................................................... . PEER SWAN ...•••.••••••••••••..••••.•••••••.•••••••.••••..•••••.••••.••.•••.••.•..••.•...... STAFF DON MCINTYRE, General Manager ............................................... . BLAKE ANDERSON, Assistant General Manager ......................... . CHRIS DAHL, Director of Information Technology ........................ . ED HODGES, Director of General Services Administration .......... . DAVID LUDWIN, Director of Engineering ...................................... . BOB OOTEN, Director of Operations & Maintenance .................... . MIKE PETERMAN, Director of Human Resources ........................ .. GARY STREED, Director of Finance ............................................. .. MICHELLE TUCHMAN, Director of Communications .................... . NANCY WHEATLEY, Director of Technical Services .................... . STEVE KOZAK, Financial Manager ............................................... . MIKE WHITE, Controller ................................................................. . GREG MATHEWS, Principal Administrative Analyst.. ................... . JIM HERBERG, Engineering Supervisor ........................................ __ TERRI JOSWAY, Safety & Emergency Response Mgr ................. .. LISA LOREY, Human Resources Manager .................................... . LENORA CRANE, Committee Secretary ........................................ . OTHERS TOM WOODRUFF, General Counsel .............................................. . c: Debra Lecuna Penny Kyle DRAFT MINUTES OF FINANCE, County Sanitation Districts of Orange County, California P.O. Box 8127 • 10844 Ellis Avenue Fountain Valley, CA 92728-8127 Telephone: (714) 962-2411 ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Wednesday, December 10, 1997, 5:30 P.M~ A meeting of the Finance, Administration and Human Resources Committee of the County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California was held on Wednesday, December 10, 1997, at 5:30 p.m., at the Districts' Administrative Offices. ROLL CALL The roll was called and a quorum declared present, as follows: Committee Directors Present: George Brown, Chair John J. Collins, Joint Chair Jan Debay Barry Denes Norman Z. Eckenrode Mark Leyes Mark A. Murphy Thomas R. Saltarelli Mark Schwing William G. Steiner Committee Directors Absent : Peer Swan, Vice Joint Chair Other Directors Present: None APPOINTMENT OF A CHAIR PRO TEM No appointment was necessary. PUBLIC COMMENTS No comments were made. APPROVAL OF MINUTES Staff Present: Don McIntyre, General Manager Gary Streed, Director of Finance Mike Peterman, Director of Human Resources David Ludwin, Director of Engineering Michelle Tuchman, Director of Communications Greg Mathews, Principal Administrative Analyst Mike White, Controller Steve Kozak, Financial Manager Jim Herberg, Engineering Supervisor Terri Josway, Safety & Emergency Response Mgr. Lisa Lorey, Human Resources Manager Lenora Crane, Committee Secretary Others Present: Patti Gorczyca, Public Financial Management, Inc. Toby Weissert, Carollo Engineers The minutes of November 12, 1997 meeting of the Finance, Administration and Human Resources Committee were approved as drafted. Minutes of Finance, Admin. ~11d Human Resources Committee Page 2 December 10, 1997 REPORT OF THE COMMITTEE CHAIR The Committee Chair had no report. REPORT OF THE GENERAL MANAGER • General Manager Don McIntyre updated the Committee on the LAFCO process regarding consolidation of the Districts. • There will be a meeting of the Ad Hoc Committee Re Strategic Plan on Thursday, December 18, 1997, at 5:30 p.m. Important policy issues will be discussed and the Directors were encouraged to attend. REPORT OF THE DIRECTOR OF FINANCE • As requested by Director Peer Swan, included in the COP Monthly Report is a new schedule which shows performance of the remarketing agents comparing each of our issues to the other, and to a staff-developed composite index. • The monthly Treasurer's Report was distributed prior to the meeting in accordance with policy. • The Districts will be receiving the bulk of our portion of the property taxes and user fees this month which will be approximately $30 million. REPORT OF THE DIRECTOR OF HUMAN RESOURCES • A quarterly report regarding broad banding was supposed to be given at this meeting, however, Mr. Peterman advised that this item is being deferred until the February meeting, depending on the outcome of an upcoming meeting with the union. At present, there is nothing new to report. • Linda Eisman, the Districts' Training Manager, has resigned and is going back to Savannah, Georgia. Internal recruitment for this position is underway. REPORT OF THE DIRECTOR OF COMMUNICATIONS • Director of Communications Michelle Tuchman updated the Committee regarding the water conservation measures taken by the Districts, Los Angeles County and the City of Los Angeles last Friday which included news releases resulting in articles in local newspapers and television news broadcasts. She also reviewed the Districts' fine performance during Saturday's El Nino storm. CBS reported erroneously that there was a sewage spill from our Huntington Beach Plant. Michelle immediately called into the news room and they stopped broadcasting that message, however, they did not correct it. Don McIntyre advised the Committee that we did have a high flow of 503 mgd for about an hour in the afternoon. We handled it very nicely, with just a few minor problems, due to the efforts of a lot of people who came in the help voluntarily. • Information packets on the Groundwater Replenishment System will be distributed to newspapers and the Directors within the next week. Minutes of Finance, Admin.~d Human Resources Committee Page 3 ; December 10, 1997 REPORT OF GENERAL COUNSEL General Counsel was not present. CONSENT CALENDAR ITEMS (1 -4) 1. FAHR97-79: RECEIVE AND FILE TREASURER'S REPORT FOR THE MONTH OF NOVEMBER 1997 AND FORWARD TO THE JOINT BOARDS: The Treasurer's Report was handed out at the FAHR Committee meeting in accordance with the Board-approved Investment Policy, and in conformance to the Government Code requirement to have monthly reports reviewed within 30 days of month end. 2. FAHR97-80: Receive and file Certificates Of Participation (COP) Report 3. FAHR97-81: Receive and file Employment Status Report 4. FAHR97-82: Receive and file Final Report Regarding Cost Of Workplace Investigation END OF CONSENT CALENDAR MOTION: Moved, seconded and duly carried to approve the recommended actions for items specified as 1 through 4 under "Consent Calendar.• ACTION ITEMS (Nos. 5 -7) 5. FAHR97-83: Accept SAWPA's explanation of a sincere difference of interpretation, and waive the interest amounts assessed by staff on the late payments for treatment plant capacity (Financial issues between SAWPA and CSDOC). COMMITTEE DISCUSSION: Mr. Streed gave an overview of the financial issues between the Santa Ana Watershed Project Authority (SAWPA) and CSDOC. Partial payments on the 9th and 10th mgd by SAWPA, based on their interpretation of the ten-year payment option in the agreements, led to the Districts administratively imposing interest on the outstanding invoices. Staff and SAWPA have met on these issues and have agreed upon an interpretation of the payment terms. SAWPA has since paid the full amount of the 9th mgd, and 1/10 of the total due for the 10th mgd, including interest on an amortized basis. Mr. Streed advised the Committee that SAWPA is requesting that the Districts reverse the interest charges which amount to approximately $108,000. There would be no out-of-pocket capital cost losses. General Manager Don McIntyre stated that during meetings with SAWPA, he was impressed by SAWPA's sincerity. Discussion took place regarding the legality of the Districts' imposing interest or penalties in this matter. The Committee aJso indicated they did not want to damage. the good will and positive relationship the Districts and SAWPA are currently experiencing. It was also noted that waiving the interest costs would not constitute a gift of public funds. MOTION: It was moved, seconded and duly carried to approve staffs recommendation to waive the SAWPA interest amounts assessed by staff on the late payments for treatment plant capacity. Minutes of Finance, Admin ~nd Human Resources Committee Page4 December 10, 1997 6. FAHR97-84: Adoption of a formal borrowing and lending program by the Boards of Directors of the individual Districts in order to provide for inter-District loans, with interest, while the Strategic Plan is being completed and a long-term financial plan is being prepared. COMMITTEE DISCUSSION: Mr. Streed advised the Committee that borrowing for capital improvements was a part of the rate setting process last year. Most of the Districts agreed to continue with the 50:50 mix of borrowing and pay-as-we-go financing. District 1 wanted to increase the borrowing portion in order to smooth their substantial user fee increases. Due to the number of significant financial issues (e.g., reserves study, capital replacement needs, Strategic Plan capital requirements, participation in and funding for the Orange County Water District Reclamation Project, Groundwater Replenishment Project and Districts' Consolidation) which will be brought before the Committee in the next six months, staff is recommending that a delay in a new COP issue should be considered and that Districts 1 and 11 formally borrow from Districts 2 and 3 until a new COP issue is completed. During discussion, the Committee determined that the Districts must maintain separate rate and interest funds for each District due to differing fee structures, and that they may change after consolidation, which will be effective July 1. MOTION: It was moved, seconded and duly carried to recommend that the Boards of Directors of the individual Districts adopt a formal borrowing and lending program in order to provide for inter-District loans, with interest, while the Strategic Plan is being completed and a long-term financial plan is being prepared. 7. FAHR97-85: Approve Rate Advisory Committee Recommendations as follows: 1. Adopt commercial user categories; 2. Approve the concept of a joint study of flows and strengths; 3. Contact the Orange County Business Council and the Cities for assistance in identifying various commercial users; 4. Conduct a study of flow and wastewater strength from SROs and congregate care facilities; 5. Plan to implement a revised rate structure for 1998-99; and 6. Return to future Committee meetings with recommendations for connection fees and the appeal process for user fees (All Districts). COMMITTEE DISCUSSION Gary Streed introduced Toby Weissert of Corallo Engineers and Jim Herberg, the Districts' Engineering Supervisor. He advised the Committee that this was the first of several reports that would come before the Committee over the next several months. Mr. Streed advised that he was prepared to discuss user fee issues and would return in the next few months to discuss the other issues. He reviewed the recommendations from the Rate Advisory Committee and advised the Committee that it is not our intent to raise SFR rates, just to restructure the commercial and industrial rates. Concerns regarding raising commercial and industrial rates, without doing an economic impact study, were brought up, since this may drive industries out of Orange County. Director Leyes was against any action until all of the other pending Districts' financial issues are resolved. The Committee agreed that the old system of using square footage is grossly inadequate and a move must be made to correct it, however, they wanted a clearer picture of costs in dollars and cents, not ratios. Staff advised that the rate structure is not in place and will be brought back to the Committee for a rate discussion in March or April. Tonight's recommendation is not to approve numbers, but only the concepts. The Committee felt the verbiage for recommendation No. 5 should be changed to read, "Develop a revised rate structure for 1998-99 ... " Minutes of Finance, Admin. md Human Resources Committee Page 5 / '\ December 10, 1997 MOTION: It was moved, seconded, and duly carried to approve, in concept only, the following Rate Advisory Committee Recommendations with modification to item 5. There were 9 Ayes and 1 Nay. 1. Adopt interim commercial user categories; 2. Approve the concept of a joint study of flows and strengths; 3. Contact the Orange County Business Council and the Cities for assistance in identifying various commercial users; 4. Conduct a study of flow and wastewater strength from SROs and congregate care facilities; 5. Develop a revised rate structure for 1998-99; and 6. Return to future Committee meetings with recommendations for connection fees and the appeal process for user fees (All Districts). INFORMATIONAL PRESENTATIONS 8. FAHR97-86: Revised method of benchmarking Districts' cost of wastewater treatment per million gallons COMMITTEE DISCUSSION: Greg Mathews gave a slide presentation explaining the Districts' revised method of benchmarking the cost of wastewater treatment per million gallons. Mr. Mathews explained that the new proposed Districts' benchmark for treatment costs is $490 per million gallons and is the result of changes in indirect cost allocation. The Districts' method of assigning costs to overhead is now similar to many other Publicly Owned Treatment Plants (POTWs). Mr. Mathew's slide presentation included FY 1997/98 Actual Expenses, Changes in Costs, Changes in Flow, Changes in Cost Allocation, and Changes in Dollars Per Million Gallon Benchmark. The Committee requested that Mr. Mathews provide information on the progression of the historic numbers, using prior actuals, to the new ones. 9. FAHR97-87: Accumulated Funds and Reserves Policy Update. COMMITTEE DISCUSSION: ·Gary Streed updated the Committee on the status of Districts' accumulated funds and reserves policies. He advised that the existing policy was adopted in 1990 and has been only slightly modified in the interim period. Staff and Public Financial Management (PFM) have been evaluating the Districts' existing policy, options, and policies of other agencies. Public Financial Management prepared a Reserve Study Summary Analysis that was distributed to the Committee at the beginning of the meeting. A telephone survey was conducted of 24 public wastewater, water and utility agencies. Each agency was queried concerning budget levels, annual debt services, value of capital plant, ratings, and use of insurance and levels of discretionary reserves, exclusive of debt, workers' comp and pension requirements, and any cash accumulations for specific pay-as-you-go for near-term capital projects. With regard to identified reserves, the survey included all discretionary cash reserves, excluding bond related reserves and unspent proceeds, pension and worker's comp reserves, and any cash set aside for near term specific capital outlay. · The Committee requested that staff expand the information relating to the Capital Budget and total amount of debt. It was also requested that all reserve categories be included in the report not just totaled. Minutes of Finance, Admin. <:ind Human Resources Committee Page6 December 10, 1997 Mr. Streed advised the Committee that this was an information item with no recommendation tonight. A final report will be brought to the Committee in February. CLOSED SESSION There was no closed session. OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY Director William Steiner provided information to the Committee regarding the status of the Orange County bankruptcy pool settlement. He advised that the County has been meeting to iron out a settlement with LeBoeuf, Lamb, Green & MacRae. The firm's malpractice insurance would cover any payment up to $50 million, which is one of the largest damage settlements ever by a law firm. The proposed settlement with LeBoeuf, Lamb, Greene & MacRae, is being held up by the North Orange County Community School District, which is a party to the Orange County lawsuit, and which is suing LeBoeuf, Lamb, Greene & MacRae for $16.5 million. MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING None. MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT None. FUTURE MEETING DATES There is no meeting scheduled for January. The next Finance, Administration and Human Resources Committee Meeting is scheduled for Wednesday, February 11, 1998, at 5:30 p.m. ADJOURNMENT The meeting was adjourned a 7:14 p.m. Submitted by: ~e~ Finance, Administration and Human Resources Committee Secretary H:\WP.DTA\FIN\210\CRANE\FAHR\FAHR.97\DEC\12-97MIN.DOC FAHR COMMITTEE Meeting Date ToJt. Bds. 01/21/98 01/28/98 AGENDA REPORT Item Number Item Number /. County Sanitation Districts of Orange County, califomia FROM: Gary Streed, Director of Finance . Q AV Originator: Steve Kozak, Financial Manager~,-- SUBJECT: Treasurer's Report for the month of December 1997 GENERAL MANAGER'S RECOMMENDATION Receive and file Treasurer's Report for the month of December 1997. SUMMARY Pacific Investment Management Co. (PIMCO), has served as the Districts' professional external money manager, and Mellon Trust as the Districts' third- party custodian, since September 1995. The Districts' Investment Policy, adopted by the Joint Boards, includes reporting requirements as listed down the left-most column of the attached PIMCO Monthly Report for the "Liquid Operating Monies" and for the "Long-Term Operating Monies." The Districts' external money manager is operating in compliance with the requirements of the Districts' Investment Policy. The Districts' portfolio contains no reverse repurchase agreements. Historical cost and the current market ("mark-to-market") values are shown as estimated by both PIMCO and Mellon Trust. The slight differences are caused by differing assumptions regarding marketability at the estimate date. PROJECT/CONTRACT COST SUMMARY None. BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. [8J Not applicable (information item) \lradon\dala1wwp.dlallin\210'c:rane\FAHRIFAHRll8\IANIFAHRll8.Q1.doc RNNd: 1W17197 Page 1 ADDITIONAL INFORMATION Schedules are attached summarizing the detail for both the short-term and long- term investment portfolios. In addition, a consolidated report of posted investment portfolio transactions for the month of December 1997 is attached. The attached yield analysis report is presented as a monitoring and reporting enhancement. In this report, yield calculations based on book values and market values are shown for individual holdings, as well as for each portfolio. Mellon Trust, the Distri'Cts' custodian bank, is the source for these reports. Transactions that were pending settlement at month end may not be reflected. The Districts' investments are in compliance with the Districts' adopted Investment Policy, and the California Government Code. In addition, sufficient funds are available for the Districts to meet its operating expenditure requirements for the next six months. During the month of December, the Districts received $17 million through the Orange County Tax Collector's property tax allocation cycle. The funds were deposited to the Districts' Long-Term portfolio for investment. The table below details the book balances of the Districts' funds at mcmth-end. A graphical representation of month-end balances is shown by the attached bar chart. State of Calif. LAIF Union Bank Checking Account Union Bank Overnight Repurchase Agreement Bank of America Checking Account Bank of America Money Market Account PIMCO -Short-term Portfolio PIMCO -Long-term Portfolio District 11 GO Bond Fund 921 Debt Service Reserves @ Trustees Petty Cash Deferred Compensation TOTAL ALTERNATIVES None. CEQA FINDINGS None. llnldonldm1w,p.dtallin\210'o-'FAHRIFAHRIIB\IANIFAHRll8-01.dcc R.....t: 1W171117 $16,367,571 390,120 198,000 74,594 127,833 17,386,022 295,309,523 15,127 33,082,055 4,400 11,446,289 $374 401 534 5.7 4.9 5.1 4.1 4.0 5.5 5.6 5.6 6.2 (0.13}-36.06 Page2 • ATTACHMENTS 1. Monthly Investment Reports 2. Monthly Transaction Reports GGS:SK:lc \lradonldata1""".dta\lin\210\cnlne\FAHR\FAHR8NANIFAHR88-01.doc RNud: 10'17117 Page3 Prepared by Finance, 1/13/98, 7:29 AM Monthly Treasurers Report Districts' Fund Balances $400,000,000 .....------------------------------- $300,000,000 I tr//~ $200 1 000 I 000 $100,000,000 1 ------t~-O<-XX1---K>¢,>0-0c:J-----fS(</,n>0&"~ /,---t>< ""· ,...~., ... .,.,.'>O,,,J-------{;~>0~9'-~Q<2f----l~WSI--I $0 I L xxxx a vs,,x.,,1vs.?1 P< xx xx, rYYYY'>I r)O(YY),I l'Y\I\IV\A I Jul, 97 Aug, 97 Sep, 97 Oct, 97 Nov, 97 Dec, 97 ~ PIMCO -Long-term 1Z1 PIMCO -Short-term g!) Debt Service Reserves rn LAIF c::i Deferred Compensation C:J Bank Accts II Petty Cash EJ Dist 11 GO Bond Fund G:\excel.dta\fin\2220\geggi\Flnance\monthly treasurers report MONTHLY REPORT COUNTY SANITATION DISTRICTS OF ORANGE COUNTY INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ending 31 December 1997) Liquid Operating Monies 15.1.1 PORTFOLIO COST AND MARKET V ALOE Current Market Value Estimate: • Kl~~~ • Historical Cost: • PIMCO • Mellon 15.1.2 MODIFIED DURATION Of Portfolio: Of Index: 15.1.3 1% INTEREST RATE CHANGE Dollar Impact (gain/loss) of 1 % Change: 15.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: (see attached schedule) 15.1.5 PORTFOLIO MATURITY % of Portfolio Maturing within 90 days: 15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: 15.1.7 SECURITIES BELOW "A" RATING % of Portfolio Below "A": 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" 15.1.9 PORTFOLIO PERFORMANCE Portfolio Total Rate of Return(%): 1 Month: 3 Months: 12 Months: Year-to-Date: Index Total Rate of Return(%): 1 Month: .. •••~•----... _, I _..,_ • -~ --~- $17,387,076 $17,386,022 $17,387,076 $17,389,997 J 0.07 0.20 $12,327 (0.07%) 0% 100% "AAA" 0% - 0.49 1.40 5.63 5.63 0.43 MONTHLY REPORT COUNTY SANITATION DISTRICTS OF ORANGE COUNTY INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING ( for the month ending 3 I December I 997) Long Term Operating Monies 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • KI~~r • Historical Cost: • PIMCO • Mellon 15.1.2 MODIFIED DURATION Of Portfolio: Of Index: 15.1.3 1 % INTEREST RA TE CHANGE Dollar Impact (gain/loss) of 1 % Change: 15.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: (see attached schedule) 15.1.5 PORTFOLIO MATURITY % of Portfolio Maturing within 90 days: 15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: 15.1.7 SECURITIES BELOW "A" RATING % of Portfolio Below "A": 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" 15.1.9 PORTFOLIO PERFORMANCE Portfolio Total Rate of Return:(%) 1 Month: 3 Months: 12 Months: Year-to-Date: Index Total Rate of Return:(%) 1 Month: H:l..V-INANC c"\22/0lKOZA.K\L•T/297.RPJ p95,500,581 295,309,523 $294,676,421 $294,710,368 2.19 2.30 $6,594,723 0% NA "AAA" 0% - 0.80 1.95 7.87 7.87 0.74 OCSF075111 LIQUID OPER-PIMCO PORTFOLIO DISTRIBUTION CASH & CASH EQUIVALENTS CASH COMMERCIAL PAPER -DISCOUNT FEDERAL HOME LOAN MORTGAGE -LE FNMA ISSUES -LESS THN lYR FED HM LOAN BNK -LESS THN lYR FEDERAL FARM CREDIT BANK -LES BSDT RESERVE DEPOSIT ACCOUNTS TOTAL CASH & CASH EQUIVALENTS FIXED INCOME SECURITIES U.S. GOVERNMENTS TOTAL FIXED INCOME SECURITIES OTHER PORTFOLIO ASSETS PAYABLES/RECEIVABLES TOTAL OTHER PORTFOLIO ASSETS NET PORTFOLIO ASSETS MELLON TRUST PORTFOLIO SUMMARY BY SECTOR 31-DEC-1997 COST 0.70 2,361,079.10 3 I 15 7 I 099 • 33 2,662,858.55 2,371,818.00 3,243,357.92 190,862.00 --------~--13,987,075.60 3 I 402 I 921. 88 ------------3,402,921.88 219,554.18 ----------219,554.18 ================== 17,609,551.66 MARKET VALUE 0.70 2,361,079.10 3,157,099.33 2,662,858.55 2,371,818.00 3,243,357.92 190,862.00 % OF TOTAL 0.00% 13.41% 17.93% 15 .13% 13 .47% 18.42% 1.08% 13,987,075.60 79.45% 3,398,946.00 19.31% --------------------3,398,946.00 19.31% 219,554.18 1.25% 219,554.18 1.25% 17,605,575.78 100.00% Page 1 UNREALIZED GAIN/LOSS 0.00 0.00 0 .00 0.00 0 .00 0 .00 0 .00 0.00 -3,975.88 ----------3,975.88 0.00 0.00 -3,975.88 ESTIMATED ANNUAL INCOME 0 .00 0 .00 0.00 0.00 0.00 0.00 7,157.33 -------- 7,157.33 191,250.00 ----------191,250.00 0.00 0.00 BASE: USD HBllOO CURR YIELD 0 .00 0 .00 0.00 0 .00 0.00 0.00 3.75 0.05 5.63 5.63 0.00 0.00 -----------------------198,407.33 1.13 OCSF075222 MELLON TRUST LONG TERM OPER-PIMCO PORTFOLIO SUMMARY BY SECTOR BASE: USD 31-DEC-1997 HBllOO % OF UNREALIZED ESTIMATED CURR PORTFOLIO DISTRIBUTI.ON COST MARKET VALUE TOTAL GAIN/LOSS ANNUAL INCOME YIELD ------------------------------------------------------------------------------------------------------------------ CASH & CASH EQUIVALENTS CASH 0. 59 0. 59 0.00% 0.00 0.00 0.00 PAYABLES -74,889,331.91 -74,889,331.91 -24.89% 0.00 0.00 0.00 CERTIFICATES OF DEPOSIT -DOME 13,494,275.00 13,503,687.53 4.49% 9,412.53 803,250.00 5.95 COMMERCIAL PAPER -DISCOUNT 9,895,299.50 9,895,299.50 3.29% 0.00 0 .00 0.00 BSDT RESERVE DEPOSIT ACCOUNTS 432,707.00 432,707.00 0.14% 0.00 16,226.51 3.75 ------------------------------------------------------------------------------------TOTAL CASH & CASH EQUIVALENTS -51,067,049.82 -51,057,637.29 -16.97% 9,412.53 819,476.51 -1.61 FIXED INCOME SECURITIES U.S. GOVERNMENTS 170,867,630.62 171,628,357.66 57.03% 760,727.04 11,232,510.09 6.54 U.S. AGENCIES 112,095,609.13 112,370,814.00 37.34% 275,204.87 7,254,890.00 6.46 GNMA MULTI FAMILY POOLS 10,526,781.46 10,585,730.78 3.52% 58,949.32 700,310.19 6.62 COLLATERALIZED MORTGAGE OBLIGA 3,492,480.47 3,500,274.05 1.16% 7,793.58 216,650.00 6.19 ASSET BACKED SECURITIES 568,097.74 568,799.92 0.19% 702.18 35,222.06 6.19 BANKING & FINANCE 37,291,179.40 37,202,174.05 12. 36% -89,005.35 2,400,112.47 6.45 INDUSTRIAL 10,935,640.00 10,511,010.00 3.49% -424,630.00 909,400.00 8.65 ------------------------------------------------------------------------------------TOTAL FIXED INCOME SECURITIES 345,777,418.82 346,367,160.46 115.10% 589,741.64 22,749,094.81 6.57 OTHER PORTFOLIO ASSETS PAYABLES/RECEIVABLES 5,630,467.82 5,630,467.82 1.87% 0.00 0.00 0.00 ---------------~--------------------------------------------------------------------TOTAL OTHER PORTFOLIO ASSETS 5,630,467.82 5,630,467.82 1.87% 0.00 0.00 0.00 -·. ----------<------'------====------=======-----============== ================ ======= NET PORTFOLIO ASSETS 300,340,836.82 300,939,990.99 100.00% 599,154.17 23,568,571.32 7.83 Page 1 YLDAHAL YIELD ANALYSIS PAGE : 1 OCSF07511102 1997/12/31 RUN DATE : 01/07/98 ORANGE CTY LICIUID OPERATING RUN TIHE : 15,40,49 ===========================s===s=============================c========================================================••===== PAR VALUE YTH AT CURRENT QUALITY HARKEY TOTAL COST/ 7. TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD RATING PRICE HARKEY VALUE 7. TOTAL ------------------------------------------------------------------------------------------------- CASH I CASH ECIUIVALENTS 190,862,00 BSDT RESERVE DEPOSIT ACCOUNT-,ODD 3.750 UD,DDD 190,162.00 1,36 999495906 PUBLIC II 190,162,ID 1.10 3,DDD,DDO,OI FED FARH CR BK CONS SYS DISC 5.488 .GOD P-1 98,218 2,946,549.17 21.06 313313SA7 01/20/1998 2,946,549.17 16.95 21400,DDO.DD FEDERAL HOHE LN BK CONS DISC 5,555 ,ODO P-1 98,826 2,371,818.00 16.95 313385SP2 HAT 02/02/1998 2,371,818.00 13.64 2,400,000.00 FEDERAL HOHE LN HTG CORP DISC 5.605 .000 P-1 98.664 2,367,926.00 16.92 313397TH4 HAT 02/20/1998 2,367,926,DD 13.62 2,600,000,00 FEDERAL NATL HTG ASSN DISC 5,605 ,000 P-1 98,679 2,565,644.16 18.34 313S89RV7 HAT 11/15/1998 2,565,644.16 14.76 300,DOO.OO FEDERAL FARH CR BK DISC NTS 5.610 .ooo P-1 98.936 296,809.75 2.12 313313RV2 H/15/1998 296,809.75 1.71 800,DDO.OO NATIONAL RURAL DISC 5.625 .ODO P-1 98.674 789,393.33 5,64 63743DA84 01/08/1998 789,393,33 4.54 900,ooo.oo GENERAL ELEC CAP DISC 5,635 .ooo 97.961 793,685.33 S.60 36959JAU7 01/28/1998 783,685.33 4.51 100,000.00 FEDERAL NATL HTG ASSN DISC S.668 .000 P-1 97,214 97,214.39 .69 313599YG2 HAT 06/19/1998 97,214.39 .56 aoo,000.00 FEDERAL HOHE LN NTG CORP DISC S.677 ,ODD P-1 99,647 789,173.33 5.64 513397UT6 HAT 13/26/1991 789,173.33 4.54 800,IO0.OI FORD NTR CR CO DISC 6,024 .000 NR ,a.soo 788,000.44 5.63 34539UAEZ 01/14/1991 711,000.44 4.53 -----------------------------------------TOTAL CASH I CASH ECIUIVALENTS S.451 .079 13,987,074,90 100.00 13,997,074.90 80.46 FIXED INCOHE SECURITIES 3,400,000.00 US TREASURY NOTES 5,314 5,627 AAA 99.969 3,402,921.88 100.00 912827Jlt5 05,6257. 01/31/1999 DD 02/01/93 3,398,946.00 19.55 YLDANAL OCSFD75111D2 ORANGE CTY LIIIUID OPERATING YIELD ANALYSIS 1997/12/31 PAGE RUN DATE RUN TINE 2 01/07/98 15.40.49 =====s========================s~============================================================================================= PAR VALUE SECURITY ID SECURITY DESCRIPTION TOTAL FIXED INCOHE SECURITIES TOTAL YTH AT CURRENT QUALITY HARKET BOOK YIELD RATING PRICE 5.314 5.627 5.446 .258 TOTAL COST/ HARKEY VALUE 3,402,921.88 3,398,946.00 17,389,996.78 17,386,020.90 ================= 7. TYPE Y. TOTAL 100.00 19.SS Ill.DO 100.0I ========= YLDANAL YIELD ANALYSIS PAGE : 3 OCSF07522202 1997/12/31 RUN DATE : 01/07/98 ORANGE CTY-LONG TERH OPERATING RUN TIHE : 15.40.49 =============================================================c=============================================================== PAR VALUE YTN AT CURRENT QUALITY HARKEY TOTAL COST/ " TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD RATING PRICE HARKEY VALUE "TOTAL ------------------------------------------------------------------------------------------------- CASH & CASH EQUIVALENTS 432,707.00 BSDT RESERVE DEPOSIT ACCOUNT-.ooo 3.750 100.000 432,707.00 1.81 99949.5906 PUBLIC II 432,707.00 .12 900,000.00 NATIONAL RURAL DISC 5.6.53 .ooo P-1 98.714 888,421.50 3.72 63743DACS 01/12/1998 888,421.50 .24 3,300,000.00 GENERAL ELEC CAP DISC 5.696 .ooo P-1 98.843 3,261,809.84 13.68 36959JAP8 Dl/23/1998 3,261,809.84 .aa 1,000,000.00 BELLSOUTH TELECOH DISC 5.762 .ODO P-1 98.923 989,233.33 4.15 0781SKBH 02/11/1998 989,233.33 .27 2,100,000.00 GENERAL ELEC CAP DISC 5.774 .ODO P-1 98.890 2,076,684.17 8.71 36959JAN3 11/22/1998 2,076,684.17 .56 1,500,000.00 IBH DISC S.78.5 .DOD P-1 99.04.5 1,48S,67S.OD 6.23 449228864 02/06/1998 1148.5,67.5.0D .40 600,00D.OO GENERAL ELEC CAP DISC S.828 .ODO 99.341 .596,043.SO 2.50 369S9JAC7 Dl/12/1998 .596,043.50 .16 soo,000.00 DU PONT DE NEHOUR DISC 5.858 .DOD P-1 99.SH 497,.570.83 2.08 26354BAU6 Dl/28/1998 497,.570.83 .13 13,soo,000.00 BANKERS TRUST CO INSTL C/D 5.994 S.948 100.027 13,494,27.5.00 S6.66 0663JOKU7 05.9.50" 06/19/1998 DD 06/19/97 13,.503,687 .53 3.6S 100,000.00 IBH DISC 6.249 .ODO P-1 99.861 99,861.33 .41 44922BA81 01/08/1998 99,861.33 .03 -----------------------------------------TOTAL CASH & CASH EQUIVALENTS S.548 1.838 231822,281.SO 100.00 23,831,694.03 6.44 FIXED INCOHE SECURITIES 4,000,000.00 FORD HTR CR HTN TRANCHE ITR 96 .ODO 5.625 Al 100.453 3,970,480.00 1.16 345412DZ1 FLTS/RT 11/09/1998 DD 11/08/93 4,018,120.00 1.09 7,100,000.00 FORD ttOTOR CR ttTN TR I 00177 .DOI 5.517 Al 99.687 6,999,748.00 2.04 345402HJ3 VAR/RT 03/30/1999 DD 03/30/94 7,077,777.00 I 1.91 YLDANAL YIELD ANALYSIS PAGE I 4 OCSFD75222D2 1997/12/31 RUN DATE : D1/D7198 ORANGE CTY-LONG TERH OPERATING RUN TIHE I 15.40.49 ==============================sc============================================================================================= PAR VALUE YTH AT CURRENT QUALITY, HARKEY TOTAL COST/ "TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD RATING PRICE HARKEY VALUE " TOTAL ------------------------------------------------------------------------------------------------- 7,062,SH.DO US TREASURY INFLATION INDEX NT 3.654 3.643 AAA i 99.50I 7,053,542.97 2.02 9128273H 3.6251. D7/15/2D12 DD 07/14/97 7,027,267.10 1.9D 5,D99,75D.DD US TREASURY INFLATION INDEX NT 3.717 3.466 AAA 97.375 4,966,678.40 1.43 9128272"3 3.3751. D1/15/20D7 DD 01/15/97 4,965,881.56 1.34 15,00D,IDD.DD US TREASURY NOTES 5.562 5.865 AAA 10D.172 15, D45,117 .19 4.33 912827Z7D D5.8751. 10/31/1998 DD 1D/31/96 15,D25,80I.OD 4.06 52,8D0,DDD.DD US TREASURY NOTES 5.771 6.748 AAA 101.875 53,755,691.4D 15.52 912827R2D D6.8751. D8/31/1999 DD D8/31/94 53,79D,DDD.OO 14.53 3,5D0,00D.DO US TREASURY NOTES 5.798 6.415 AAA 103.281 3,613,203.13 1.04 9128272SI 06.6251. 04/30/20D2 DD 04/30/97 3,614,835.00 .98 27,4D0,DOD.OI US TREASURY NOTES 5.828 7,074 AAA 106.016 29,002,130.55 8.38 912827D25 D7.5007. 11/15/20D1 DD 11/15/91 29,048,384.00 7.85 5,ooo,ooo.oo FEDERAL NATL HTG ASSN NTN 5.871 5.878 AAA lDD,031 5,000,781.25 1.44 31364FFH8 5.880Y. 1111311999 DD 11103/97 5 1 001,550.DD 1.35 4,421,524.98 CHASE HANHATTAN GRAN 95-B CL A 5.957 5,904 AAA 99.939 4,412,371.05 1.27 161614AE2 5.9D07. 11/15/2D01 DD 11/15/95 4,418,827.85 1.19 281 00D,DOD.OD US TREASURY NOTES 6.D94 6.315 AAA 102.922 28,468,923.23 I 8.32 9128272Wl 06.5D07. 05/31/20D2 DD 06/D2/97 28,818,160.00 7.78 10,000,000.00 CotfttIT TO PUR FNNA 6.101 6.170 AAA 101,DDO 9,978,125.00 2.88 999AA6619 6,1707. D1/25/2028 10,000,000.00 2.70 s,000,000.00 US TREASURY BONDS 6.162 8.869 AAA 125.437 6,233,593.75 1.81 9128lDDE5 11,1257. 08/15/20D3 DD 07/05/83 6,271,850.00 1.69 568,097.75 FIFTH THIRD BK AUTO TR 96A CLA 6.200 6.192 AAA 100,124 568,097.74 .16 31677EAA4 6.2DDY. 09/11/2001 DD 03/15/96 568,799.92 .15 3,500, ODO. DO CONTINORTBAGE HOtlE EQ 96-4 A3 6.213 6.190 AAA 100.008 3,492,480.47 1.01 21075WDK8 6.1901. 10/15/2D11 DD 11/23/96 3,SDD,274,05 .95 5,ooo,ooo.oo US TREASu,IY NOTES 6.277 6.138 AAA 101.828 4,994,531.25 1.46 9128272L5 06.2501. 02/28/2002 DD 02/28/97 5,091,400.00 1.38 4,500,0DD.H FEDERAL NATL HTG ASSN NTN 6.291 6.147 AAA 101.344 4,488,705.00 1.31 31364CXV5 6,2307. 03/11/20D2 DD 03/03/97 4,560,480.00 1.23 YLDANAL YIELD ANALYSIS PAGE : 5 OCSF07522202 1997/12/31 RUN DATE I 01/07/98 ORANGE CTY-LONG TERN OPERATING RUN TINE : 15.40.49 ===============================~============================================================================================= PAR VALUE YTH AT CURRENT QUALITY NARKET TOTAL COST/ 7. TYPE SECURITY ID SECURITY DESCRIPTION IIOOK YIELD RATING PRICE NARKET VALUE Y. TOTAL ------------------------------------------------------------------------------------------------- 39,600,000.00 FEDERAL HONE LN IIK CONS IIDS 6.305 6.492 AAA ; 99.969 39,890,500.00 11.42 3133915116 6.4901. 09/13/2000 DD 09/13/95 39,587,724.00 10.69 1,000,000.00 SEARS ROEBUCK HTN I TR 00491 6.305 7.672 A2 100.233 1,031,860.00 .28 81238XUJ8 7.690?. 02/27/1998 DD 02/28/95 1,002,330.0I .27 4,500,000.00 CATERPILLAR FINL NTNS TR00389 6.322 5.789 A2 99.841 4,466,745.00 1.29 14912LSE2 8.780?. 07/15/1998 DD 12/15/95 4,492,845.00 1.21 5,ooo,ooo.oo LEHHAN IIROS HLDGS HTN 100196 6.364 6.609 IIAAl 100.625 5,039,450.00 1.45 52517PJD4 6.6507. 11/08/2000 DD 11/08/96 5,031,250.00 1.36 4,484,481.95 6Nl1A II POOL 10080023 6.375 6.334 AAA 102.625 4,558,756.19 1.32 36225CAZ9 6,500?. 12/20/2026 DD 12/01/96 4,602,199.60 1.24 1,305,000.00 IIEAR STEARNS COS INC SR NTS 6.425 6.664 A2 101.284 1,317,619.35 .38 073902AW8 6.750?. 05/01/2001 DD 04/26/96 1,321,756.20 .36 11,000,000.00 US TREASURY NOTES 6.449 7.330 AAA 105.734 17,734,218.75 5.18 912827ZX3 07.7507. 02/15/2001 DD 02/15/91 17,974,780.00 4.86 1,000,000.00 CHRYSLER FINL HTN TR I 00335 6.514 6,249 A3 100.172 993,160.00 .28 17120CIPY1 6.2601. 07/20/1998 DD 07/18/95 1,001,720.0I .27 10,000,000.00 COHHIT TO PUR FHLNC 6.528 6.939 AAA 100.875 9,998,359.38 2,91 999AIIT444 7.0001. 01/15/2028 10,087,500.00 2.72 3,700,000.00 GENERAL HTRS ACCEP NTN TR00324 6.532 8.174 A3 102.460 3,911,640.0I 1,09 37042RPN8 8.3751. 02/03/1999 DD 0/03/95 3,791,020.00 1.02 8,000,000.00 FEDERAL NATL HTG ASSN NTN 6,577 6.483 AAA 102.187 8,012,576.00 2.36 31364C8D9 6.6251. 04/18/2001 DD 04/18/96 8,174,960.00 2.21 2,900,000.00 CHRYSLER FINL NTN TR I 00306 6.591 7.244 A3 100.362 2,952,896.00 .84 17120CINT4 7.2701. 04/13/1998 DD 04/13/95 2,910,498.00 .79 9,000,000.00 PHILIP HORRIS COS NT 6,593 8.755 A2 105.652 9,903,780.00 2.74 718154882 9,2501. 02/15/2000 9,508,680.00 2.57 10,000,000.00 FEDERAL NATL HTG ASSN HTN 6,636 5.726 AAA 98.500 9,593,750.00 2.84 313648WF3 5.6401. 02/20/2001 DD 02/21/96 9,850,ooo.oo 2 ,66 3,000,000.00 6 HA C HED TERH NTS 6.660 8.245 A3 104.612 3,227,070.00 .90 37042RKCl4 8.6251. 1/10/2000 DD 1/10/95 3,138,360.00 .85 YLDANAL OCSFD7522202 ORANGE CTY-LON8 TERN OPERATING YIELD ANALYSIS 1997/12/31 PAGE RUN DATE RUN TINE 6 I 01/07/98 15.40.49 -----=-----=-----=---=· :c ::rr:-::E::::::: ·· :: •=-:::::::::::::::::::::::=-------------·----·--·-------·------=------=--==-===-=--=-====- PAR VALUE SECURITY ID SECURITY DESCRIPTION 5,000,000.00 FEDERAL HotlE LN HTS CORP DEBS 3134AOW8 5.9901. 03/16/2001 DD 03/06/96 20,000,000.00 COHHIT TO PUR FHLHC SOLD 999ABV993 7.0001. 01/15/2027 5,840,269.37 GNMA II POOL 1080088M 36225CC20 7.0001. 06/20/2027 DD 06/01/97 TOTAL FIXED INCOME SECURITIES TOTAL YTM AT CURRENT QUALITY HARKET BOOK YIELD RATING PRICE 6.713 6.071 AAA ; 98.672 6.745 6.939 AAA 100.875 6.828 6.832 AAA 102.453 --------------- 5.554 6.403 5.554 6.341 TOTAL COST/ MARKET VALUE 4,851,562.50 4,933,600.00 20,281,250.00 20,175,000.00 5,968,025.27 5,983,531.18 345,777,418.82 346,367,160.46 369,599,700.32 370,198,854.49 ================= 7. TYPE 7. TOTAL 1.42 1.33 5.82 S.45 1.72 1.62 100.00 93.56 100.00 100.00 ========= OCSG000100 CSDOC-CONSOLIDATED SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER MELLON TRUST POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE LOCAL AMOUNT/ COST/ GAIN LOSS BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS . BASE: USD TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ --------------------------------------------------------------------RECEIPTS AND DISBURSEMENT TRANSACTIONS U.S. DOLLAR CASH/SECURITIES RECEIVED FROM PLAN ADMINISTRATOR LONG TERM OPER-PIMCO 0.00 RECD FROM PLAN ADMINISTRATOR 18-DEC-1997 NA9123459 -----------CD ----------- U.S . DOLLAR OTHER ADMINISTRATIVE EXPENSES LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 18-NOV-1997 3128FRN97 FHLMC GROUP #DB-2216 -----------cw 7.000% 09/01/2027 DD 09/01/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 18-NOV-1997 3128FRN97 FHLMC GROUP #DB-2216 -----------cw 7.000% 09/01/2027 DD 09/01/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 18-NOV-1997 3128FRN97 FHLMC GROUP #DB-2216 -----------cw 7.000% 09/01/2027 DD 09/01/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 18-NOV-1997 3128FRN97 FHLMC GROUP #DB-2216 -----------cw 7.000% 09/01/2027 DD 09/01/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 18-NOV-1997 3128FSEE4 FHLMC GROUP #DB-2833 -----------cw 7.000% 10/01/2027 DD 10/01/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 18-NOV-1997 3128FSEE4 FHLMC GROUP #DB-2833 ----~-----cw 7.000% 10/01/2027 DD 10/01/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 18-NOV-1997 3128FSN61 FHLMC GROUP #DB-3113 -----------cw 7.000% 10/01/2027 DD 10/01/97 ----------- 17 ,000 ,000 .00 17 ,000 ,000 .00 0 .00 -3 .00 -3 .00 0 .00 -3.00 -3 .00 0 .00 -3.00 -3 .00 0.00 -3 .00 -3.00 0 .00 -3 .00 -3.00 0.00 -3.00 -3 .00 0.00 -3 .00 -3.00 0.00 Page 1 17,000,000 .00 0 .00 0.00 0 .00 -3.00 0.00 0.00 0.00 -3.00 0.00 0.00 0.00 -3 .00 0.00 0.00 0.00 -3.00 0.00 0.00 0.00 -3.00 0 .00 0 .00 0 .00 -3.00 0.00 0.00 0.00 -3.00 0 .00 0.00 0 .00 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 ') .__.,.,,,,/ MELLON TRUST OCSG000100 CSDOC-CONSOLIDATED POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 3128FTLD6 FHLMC GROUP #DB-3924 EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE 18-NOV-1997 -----------cw 7.000% 11/01/2027 DD 11/01/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 18-NOV-1997 3128FTPY6 FHLMC GROUP #DB-4039 -----------cw 7.000% 11/01/2027 DD 11/01/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 18-NOV-1997 3128FTQR0 FHLMC GROUP #08-4064 -----------cw 7.000% 11/01/2027 DD 11/01/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 18-NOV-1997 3128FTQR0 FHLMC GROUP #DB-4064 -----------cw 7.000% 11/01/2027 DD 11/01/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 18-NOV-1997 3128FTQR0 FHLMC GROUP #DB-4064 -----------cw 7.000% 11/01/2027 DD 11/01/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 09-DEC-1997 912827D25 US TREASURY NOTES -----------cw 07.500% 11/15/2001 DD 11/15/91 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 18-DEC-1997 9128272Wl US TREASURY NOTES -----------cw 06.500% 05/31/2002 DD 06/02/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 02-DEC-1997 9128273D2 US TREASURY NOTES -----------cw 06.000% 08/15/2000 DD 08/15/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 19-DEC-1997 99345G530 GOLDMAN SACHS LP REPO -----·------ Page 2 LOCAL AMOUNT/ COST/ GAIN LOSS -3 .00 -3.00 0 .00 -3.00 -3.00 0 .00 -3.00 -3.00 0 .00 -3.00 -3.00 0 .00 -3 .00 -3 .00 0 .00 -3 .00 -3.00 0.00 -3 .00 -3 .00 0 .00 -3.00 -3 .00 0 .00 -3.00 -3 .00 BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS -3.00 0.00 0.00 0.00 -3.00 0.00 0.00 0.00 -3.00 0.00 0.00 0.00 -3.00 0.00 0.00 0.00 -3.00 0.00 0.00 0.00 -3.00 0.00 0.00 0.00 -3.00 0.00 0.00 0.00 -3.00 0.00 0.00 0.00 -3.00 0.00 BASE: USO TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 OCSG000100 CSDOC-CONSOLIDATED SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER MELLON TRUST POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE LOCAL AMOUNT/ COST/ GAIN LOSS BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS BASE: USO TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ --------------------------------------------------------CW 05.700% 12/19/1997 DD 12/18/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEES 23-DEC-1997 99345H082 WIRE FEES FROM 12-22 ----------- CW LEHMAN BROTHERS REPO -----------05.560% 12/22/1997 DD 12/19/97 LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 23-DEC-1997 99345H959 LEHMAN BROTHERS REPO ----------- CW 05.610% 12/23/1997 DD 12/22/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEES 26-DEC-1997 99345K044 GOLDMAN SACHS LP REPO -----------CW 05.550% 12/26/1997 DD 12/23/97 ----------- LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 29-DEC-1997 99345L604 LEHMAN BROTHERS REPO ----------- CW 05.460% 12/29/1997 DD 12/26/97 ----------- LONG TERM OPER-PIMCO 0.00 TO REVERSE 18-NOV-1997 999ABK443 COMMIT TO PUR FHLMC GOLD ----------- CWC 7.000% 11/15/2027 ----------- PURCHASES U.S. DOLLAR CASH & CASH EQUIVALENTS LONG TERM OPER-PIMCO 600,000.00 ABBOTT LABS DISC 00282AZQ2 12/24/1997 03-DEC-1997 03-DEC-1997 SAN F -----------B BANK OF AMERICA NT & SA, LONG TERM OPER-PIMCO 600,000.00 ABBOTT LABS DISC 03-DEC-1997 00282AZQ2 12/24/1997 03-DEC-1997 FC BANK OF AMERICA NT & SA, SAN F 03-DEC-1997 LONG TERM OPER-PIMCO 3,500,000.00 BANKERS TRUST CO INSTL C/D 16-DEC-1997 0663J0KU7 05.950% 06/19/1998 DD 06/19/97 17-DEC-1997 B GOLDMAN SACHS & CO, NY ----------- Page 3 0.00 0 .00 1.000000000 0.00 -3.00 -3.00 0.000000 -3.00 0.00 0.000000 0.00 0 .00 1.000000000 0.00 -3.00 -3.00 0.000000 -3.00 0 .00 0.000000 0 .00 0 .00 1.000000000 0.00 -3 .00 -3 .00 0.000000 -3 .00 0.00 0.000000 0.00 0.00 1.000000000 0.00 -3 .00 -3 .00 0.000000 -3 .00 0 .00 0.000000 0.00 0 .00 1.000000000 0.00 36.00 36.00 0.000000 36.00 0.00 0.000000 0.00 0 .00 1.000000000 0.00 -598, 061. 00 -598,061.00 99.676833 598,061.00 598,061.00 99.676833 0.00 0.00 1.000000000 0.00 -598, 061. 00 -598, 061. 00 99.676833 -598 , 061. 00 0.00 99.676833 0 .00 0.00 1.000000000 0.00 -3,499,055.00 -3,499,055.00 99.973000 3,499,055.00 3,499,055.00 99.973000 0.00 0 .00 1.000000000 MELLON TRUST OCSG000100 CSDOC-CONSOLIDATED POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER LONG TERM OPER-PIMCO EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE 3,500,000.00 BANKERS TRUST CO INSTL C/D 16-DEC-1997 0663JOKU7 05.950% 06/19/1998 DD 06/19/97 17-DEC-1997 IB ----------- LONG TERM OPER-PIMCO 3,500,000.00 BANKERS TRUST CO INSTL C/D 16-DEC-1997 0663JOKU7 05.950% 06/19/1998 DD 06/19/97 17-DEC-1997 FC GOLDMAN SACHS & CO, NY 17-DEC-1997 LONG TERM OPER-PIMCO 1,000,000.00 BELLSOUTH TELECOM DISC 05-DEC-1997 07815KBB0 02/11/1998 05-DEC-1997 B LEHMAN BROS INC ----------- LONG TERM OPER-PIMCO 1,000,000.00 BELLSOUTH TELECOM DISC 05-DEC-1997 07815KBB0 02/11/1998 05-DEC-1997 FC LEHMAN COML PAPER INC (LGSI), 05-DEC-1997 LONG TERM OPER-PIMCO 500,000.00 DU PONT DE NEMOUR DISC 29-DEC-1997 26354BAU6 01/28/1998 29-DEC-1997 B FIRST BOSTON CORP, NY ----------- LONG TERM OPER-PIMCO 500,000.00 DU PONT DE NEMOUR DISC 29-DEC-1997 26354BAU6 01/28/1998 29-DEC-1997 FC FIRST BOSTON CORP, NY 29-DEC-1997 LIQUID OPER-PIMCO 800,000.00 FEDERAL HOME LN MTG CORP DISC 29-DEC-1997 313397UT6 MAT 03/26/1998 29-DEC-1997 B GOLDMAN SACHS & CO, NY ----------- LIQUID OPER-PIMCO 800,000.00 FEDERAL HOME LN MTG CORP DISC 29-DEC-1997 313397UT6 MAT 03/26/1998 29-DEC-1997 FC GOLDMAN SACHS & CO, NY 29-DEC-1997 LIQUID OPER-PIMCO Page 4 LOCAL AMOUNT/ COST/ GAIN LOSS -104,703.47 0.00 0.00 -3,603,758.47 -3,603 ,758.47 0.00 -989,233.33 989,233.33 0.00 -989, 233. 33 -989 I 233 • 33 0.00 -497,570.83 497,570.83 0.00 -497,570.83 -497,570.83 0.00 -789,173.33 789,173.33 0.00 -789,173.33 -789,173.33 0.00 BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS 0.00 -104,703.47 0.00 0.00 0.00 -3,603,758.47 0.00 0.00 0.00 -989,233.33 989,233.33 0.00 0.00 -989,233.33 0.00 0.00 0.00 -497 ,570.83 497,570.83 0.00 0.00 -497,570.83 0.00 0.00 0.00 -789,173.33 789,173.33 0.00 0.00 -789,173.33 0.00 0.00 0.00 BASE: USD TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ 99.973000 99.973000 1.000000000 99.973000 99.973000 1.000000000 98. 923333 98. 923333 1.000000000 98. 923333 98.923333 1.000000000 99. 514166 99.514166 1.000000000 99. 514166 99. 514166 1.000000000 98.646666 98.646666 1.000000000 98.646666 98.646666 1.000000000 ·---·- MELLON TRUST OCSG000100 CSDOC-CONSOLIDATED POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE 100,000.00 FEDERAL NATL MTG ASSN DISC 19-DEC-1997 313589YG2 MAT 06/19/1998 19-DEC-1997 B MERRILL LYNCH PIERCE FENNER SM----------- LIQUID OPER-PIMCO 100,000.00 FEDERAL NATL MTG ASSN DISC 19-DEC-1997 313589YG2 MAT 06/19/1998 19-DEC-1997 FC MERRILL LYNCH PIERCE FENNER SM 19-DEC-1997 LONG TERM OPER-PIMCO 600,000.00 GENERAL ELEC CAP DISC 36959JAC7 01/12/1998 B CITIBANK/CP/IPA, NEW YORK LONG TERM OPER-PIMCO 600,000.00 GENERAL ELEC CAP DISC 36959JAC7 01/12/1998 FC CITIBANK/CP/IPA, NEW YORK LONG TERM OPER-PIMCO 100,000.00 IBM DISC 44922BA81 01/08/1998 B MERRILL LYNCH GOVT SECS/MONEY LONG TERM OPER-PIMCO 100,000.00 IBM DISC 44922BA81 01/08/1998 FC MERRILL LYNCH GOVT SECS/MONEY LONG TERM OPER-PIMCO 02-DEC-1997 02-DEC-1997 02-DEC-1997 02-DEC-1997 02-DEC-1997 31-DEC-1997 31-DEC-1997 31-DEC-1997 31-DEC-1997 31-DEC-1997 1,500,000.00 IBM DISC 08-DEC-1997 449228864 02/06/1998 08-DEC-1997 B BANKERS TRUST CO/COMMERCIAL PA----------- LONG TERM OPER-PIMCO 1,500,000.00 IBM DISC 08-DEC-1997 449228864 02/06/1998 08-DEC-1997 FC BANKERS TRUST CO/COMMERCIAL PA 08-DEC-1997 LONG TERM OPER-PIMCO 17,000,000.00 GOLDMAN SACHS LP REPO 18-DEC-1997 99345G530 05.700% 12/19/1997 DD 12/18/97 18-DEC-1997 B GOLDMAN SACHS & CO, NY ----------- Page 5 LOCAL AMOUNT/ COST/ GAIN LOSS -----------97,214.39 97,214.39 0.00 -97,214.39 -97,214.39 0.00 -596 ,043.50 596 ,043.50 0.00 -596,043.50 -596,043.50 0.00 -99, 861. 33 99,861.33 0.00 -99, 861. 33 -99, 861. 33 0.00 -1,485 ,675.00 1,485 ,675 .00 0 .00 -1,485,675.00 -1,485,675.00 0.00 -17,000,000.00 17,000,000.00 0.00 BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS ------------97,214.39 97,214.39 0.00 0.00 -97, 214. 39 0.00 0.00 0.00 -596,043.50 596,043.50 0.00 0.00 -596,043.50 0.00 0.00 0.00 -99, 861. 33 99,861.33 0.00 0.00 -99, 861. 33 0 .00 0 .00 0.00 -1,485,675 .00 1,485,675.00 0.00 0.00 -1,485,675.00 0 .00 0.00 0.00 -17,000,000.00 17,000,000.00 0.00 BASE: USD TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ -----------97.214388 97. 214388 1.000000000 97. 214388 97.214388 1.000000000 99.340583 99.340583 l.000000000 99.340583 99.340583 1.000000000 99. 861333 99.861333 1.000000000 99. 861333 99. 861333 1.000000000 99.045000 99.045000 1.000000000 99.045000 99.045000 1.000000000 100.000000 100.000000 1.000000000 OCSG000100 CSDOC-CONSOLIDATED MELLON TRUST POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER LONG TERM OPER-PIMCO EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE 18-DEC-1997 17,000,000.00 GOLDMAN SACHS LP REPO 99345G530 05.700% 12/19/1997 DD 12/18/97 18-DEC-1997 FC GOLDMAN SACHS & CO, NY 18-DEC-1997 LONG TERM OPER-PIMCO 17,100,000.00 LEHMAN BROTHERS REPO 19-DEC-1997 99345H082 05.560% 12/22/1997 DD 12/19/97 19-DEC-1997 B LEHMAN GOVT SECS INC, NY ----------- LONG TERM OPER-PIMCO 17,100,000.00 LEHMAN BROTHERS REPO 19-DEC-1997 99345H082 05.560% 12/22/1997 DD 12/19/97 19-DEC-1997 FC LEHMAN GOVT SECS INC, NY 19-DEC-1997 LONG TERM OPER-PIMCO 17,300,000.00 LEHMAN BROTHERS REPO 22-DEC-1997 99345H959 05.610% 12/23/1997 DD 12/22/97 22-DEC-1997 B LEHMAN GOVT SECS INC, NY ----------- LONG TERM OPER-PIMCO 17,300,000.00 LEHMAN BROTHERS REPO 22-DEC-1997 99345H959 05.610% 12/23/1997 DD 12/22/97 22-DEC-1997 FC LEHMAN GOVT SECS INC, NY 22-DEC-1997 LONG TERM OPER-PIMCO 16,800,000.00 GOLDMAN SACHS LP REPO 23-DEC-1997 99345K044 05.550% 12/26/1997 DD 12/23/97 23-DEC-1997 B GOLDMAN SACHS & CO, NY ----------- LONG TERM OPER-PIMCO 16,800,000.00 GOLDMAN SACHS LP REPO 23-DEC-1997 99345K044 05.550% 12/26/1997 DD 12/23/97 23-DEC-1997 FC GOLDMAN SACHS & CO, NY 23-DEC-1997 LONG TERM OPER-PIMCO 9,100,000.00 LEHMAN BROTHERS REPO 26-DEC-1997 99345L604 05.460% 12/29/1997 DD 12/26/97 26-DEC-1997 B LEHMAN GOVT SECS INC, NY ----------- LONG TERM OPER-PIMCO Page 6 LOCAL AMOUNT/ COST/ GAIN LOSS -17,000 ,000.00 -17,000,000.00 0.00 -17,100 ,000.00 17,100,000.00 0.00 -17,100,000.00 -17,100,000.00 0.00 -17,300,000.00 17,300,000.00 0.00 -17,300,000.00 -17,300,000.00 0.00 -16,800,000.00 16,800,000.00 0.00 -16,800,000.00 -16,800,000.00 0.00 -9,100,000.00 9,100,000.00 0.00 BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS 0.00 -17,000,000.00 0.00 0 .00 0.00 -17,100,000.00 17,100,000 .00 0.00 0.00 -17,100,000.00 0.00 0.00 0.00 -17,300,000.00 17,300,000.00 0.00 0.00 -17,300,000.00 0.00 0.00 0 .00 -16,800,000.00 16,800,000.00 0.00 0 .00 -16,800,000.00 0.00 0.00 0.00 -9,100,000.00 9,100,000 .00 0.00 0.00 BASE: USD TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 ----- OCSG000100 CSDOC-CONSOLIDATED SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER MELLON TRUST POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE LOCAL AMOUNT/ COST/ GAIN LOSS BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS BASE: USO TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ --------------------------------------------------------9,100,000.00 LEHMAN BROTHERS REPO 26-DEC-1997 99345L604 05.460% 12/29/1997 DD 12/26/97 26-DEC-1997 FC LEHMAN GOVT SECS INC, NY 26-DEC-1997 -9,100,000.00 -9,100,000.00 100.000000 -9,100,000.00 0.00 100.000000 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 418.00 BSDT RESERVE DEPOSIT ACCOUNT-01-DEC-1997 999495906 PUBLIC II 01-DEC-1997 B Ol-DEC-1997 -418.00 -418.00 1 .000000 418.00 418.00 1.000000 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 914,724.00 BSDT RESERVE DEPOSIT ACCOUNT-01-DEC-1997 999495906 PUBLIC II 01-0EC-1997 B 01-0EC-1997 -914,724.00 -914, 724. 00 1.000000 914,724.00 914,724.00 1.000000 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 86,887.00 BSDT RESERVE DEPOSIT ACCOUNT-08-DEC-1997 999495906 PUBLIC II 08-DEC-1997 B 08-DEC-1997 -86,887.00 -86,887.00 1.000000 86,887.00 86,887.00 1.000000 0 .00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 5,277.00 BSDT RESERVE DEPOSIT ACCOUNT-11-DEC-1997 999495906 PUBLIC II 11-DEC-1997 B ll-DEC-1997 -5 ,277 .00 -5,277.00 1.000000 5 ,277.00 5,277.00 1.000000 0.00 0.00 1 .000000000 0.00 LONG TERM OPER-PIMCO 281,619.00 BSDT RESERVE DEPOSIT ACCOUNT-15-DEC-1997 999495906 PUBLIC II 15-DEC-1997 B 15-DEC-1997 -281,619.00 -281,619.00 1.000000 281,619.00 281,619.00 1.000000 0.00 0.00 1.000000000 LONG TERM OPER-PIMCO 0.00 _) 107,295.00 BSDT RESERVE DEPOSIT ACCOUNT-17-DEC-1997 999495906 PUBLIC II 17-DEC-1997 B 17-DEC-1997 -107,295 .00 -107, 295. 00 1.000000 107,295.00 107,295 .00 1.000000 0.00 0 .00 1.000000000 0.00 LIQUID OPER-PIMCO 2,786.00 BSDT RESERVE DEPOSIT ACCOUNT-19-DEC-1997 999495906 PUBLIC II 19-DEC-1997 B 19-DEC-1997 -2,786.00 -2,786.00 1.000000 2,786.00 2,786.00 1.000000 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 57,985.00 BSDT RESERVE DEPOSIT ACCOUNT-22-DEC-1997 999495906 PUBLIC II 22-DEC-1997 B 22-DEC-1997 -57,985.00 -57,985 .00 1.000000 57,985 .00 57,985.00 1.000000 0 .00 0 .00 1.000000000 ·---------- Page 7 OCSG000100 MELLON TRUST CS DOC-CONSOLIDATED POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE LONG TERM OPER-PIMCO 506,302.00 BSDT RESERVE DEPOSIT ACCOUNT-26-DEC-1997 999495906 PUBLIC II 26-DEC-1997 B 26-DEC-1997 LIQUID OPER-PIMCO 10,826.00 BSDT RESERVE DEPOSIT ACCOUNT-29-DEC-1997 999495906 PUBLIC II 29-DEC-1997 B 29-DEC-1997 LONG TERM OPER-PIMCO 100,189.00 BSDT RESERVE DEPOSIT ACCOUNT-30-DEC-1997 999495906 PUBLIC II 30-DEC-1997 B 30-DEC-1997 U.S . DOLLAR FIXED INCOME SECURITIES LONG TERM OPER-PIMCO 1,305,000.00 BEAR STEARNS COS INC SR NTS 05-DEC-1997 073902AW8 6.750% 05/01/2001 DD 04/26/96 10-DEC-1997 B BEAR STEARNS & CO INC, NY ----------- LONG TERM OPER-PIMCO 1,305,000.00 BEAR STEARNS COS INC SR NTS 05-DEC-1997 073902AW8 6.750% 05/01/2001 DD 04/26/96 10-DEC-1997 IB ------------ LONG TERM OPER-PIMCO 1,305,000.00 BEAR STEARNS COS INC SR NTS 05-DEC-1997 073902AW8 6.750% 05/01/2001 DD 04/26/96 10-DEC-1997 FC BEAR STEARNS & CO INC, NY 10-DEC-1997 LONG TERM OPER-PIMCO 3,500,000.00 CONTIMORTGAGE HOME EQ 96-4 A3 23-DEC-1997 21075WDK8 6.190% 10/15/2011 DD 11/23/96 29-DEC-1997 B MORGAN STANLEY & CO INC, NY ----------- LONG TERM OPER-PIMCO 3,500,000.00 CONTIMORTGAGE HOME EQ 96-4 A3 23-DEC-1997 21075WDK8 6.190% 10/15/2011 DD 11/23/96 29-DEC-1997 IB ----------- Page 8 LOCAL AMOUNT/ COST/ GAIN LOSS -506,302.00 506,302.00 0.00 -10,826.00 10,826.00 0.00 -100,189 .00 100,189.00 0.00 -1,317,619.35 1,317,619.35 0.00 -9,542.81 0.00 0.00 -1 ,327,162.16 -1 , 327 ,162.16 0.00 -3,492,480.47 3,492,480.47 0.00 -16,850.56 0.00 0.00 BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS 0.00 -506,302 .00 506,302 .00 0 .00 0.00 -10,826.00 10,826.00 0.00 0.00 -100,189.00 100,189.00 0.00 0 .00 -1,317,619.35 1,317,619.35 0.00 0.00 -9,542.81 0 .00 0 .00 0 .00 -1,327,162.16 0.00 0 .00 0 .00 -3,492,480.47 3,492,480.47 0.00 0.00 -16 ,850.56 0.00 0 .00 0.00 BASE: USD TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ 1.000000 1.000000 1.000000000 1.000000 1.000000 1.000000000 1.000000 1.000000 1.000000000 100.967000 100.967000 1.000000000 100.967000 100.967000 1.000000000 100.967000 100.967000 1.000000000 99.785156 99.785156 1.000000000 99.785156 99.785156 l.000000000 OCSG000100 CSDOC-CONSOLIDATED SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER MELLON TRUST POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE LOCAL AMOUNT/ COST/ GAIN LOSS BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS BASE: USO TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ --------------------------------------------------------LONG TERM OPER-PIMCO 3,500,000.00 CONTIMORTGAGE HOME EQ 96-4 A3 23-DEC-1997 -3,509,331.03 -3,509,331.03 99.785156 21075WDK8 6.190% 10/15/2011 DD 11/23/96 29-DEC-1997 -3,509,331.03 0.00 99.785156 FC MORGAN STANLEY & CO INC, NY 29-DEC-1997 0.00 0 .00 1.000000000 0.00 LONG TERM OPER-PIMCO 568,097.75 FIFTH THIRD BK AUTO TR 96A CLA 18-DEC-1997 -568,097.74 -568 ,097.74 99.999998 31677EAA4 6.200% 09/01/2001 DD 03/15/96 23-DEC-1997 568,097.74 568,097.74 99.999998 B BEAR STEARNS & CO INC, NY -----------0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO J 568,097.75 FIFTH THIRD BK AUTO TR 96A CLA 18-DEC-1997 -782 .71 -782 . 71 99.999998 31677EAA4 6.200% 09/01/2001 DD 03/15/96 23-DEC-1997 0.00 0 .00 99.999998 IB -----------0.00 0 .00 1.000000000 0.00 LONG TERM OPER-PIMCO 568,097.75 FIFTH THIRD BK AUTO TR 96A CLA 18-DEC-1997 -568,880.45 -568,880.45 99.999998 31677EAA4 6 .200% 09/01/2001 DD 03/15/96 23-DEC-1997 -568,880.45 0.00 99.999998 FC BEAR STEARNS & CO INC, NY 23-DEC-1997 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 5,000,000.00 LEHMAN BROS HLDGS MTN #00196 23-DEC-1997 -5,039,450 .00 -5,039,450.00 100.789000 52517PJD4 6.650% 11/08/2000 DD 11/08/96 29-DEC-1997 5,039,450 .00 5,039,450.00 100.789000 B LEHMAN BROS INC -----------0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 5,000,000.00 LEHMAN BROS HLDGS MTN #00196 23-0EC-1997 -123,763 .89 -123,763.89 100.789000 52517PJD4 6.650% 11/08/2000 DD 11/08/96 29-DEC-1997 0.00 0 .00 100.789000 IB -----------0 .00 0 .00 1.000000000 0.00 LONG TERM OPER-PIMCO 5,000,000.00 LEHMAN BROS HLDGS MTN #00196 23-0EC-1997 -5,163,213.89 -5,163,213.89 100.789000 52517PJD4 6.650% 11/08/2000 DD 11/08/96 29-DEC-1997 -5,163,213.89 0 .00 100.789000 FC LEHMAN BROS INC 29-DEC-1997 0.00 0 .00 1.000000000 0.00 LONG TERM OPER-PIMCO 7,000,000.00 US TREASURY NOTES 23-DEC-1997 -7,406,875.00 -7,406,875.00 105.812500 912827ZX3 07.750% 02/15/2001 DD 02/15/91 24-DEC-1997 7,406,875.00 7,406,875.00 105.812500 B MORGAN STANLEY & CO INC, NY -----------0.00 0 .00 1.000000000 0 .00 LONG TERM OPER-PIMCO 7,000,000.00 US TREASURY NOTES 23-DEC-1997 -193,118.21 -193,118.21 105.812500 912827ZX3 07.750% 02/15/2001 DD 02/15/91 24-DEC-1997 0.00 0.00 105. 812500 ~-- Page 9 MELLON TRUST OCSG000100 CSDOC-CONSOLIDATED POSTED TRANSACTIONS -LOCAL/BASE Ol-DEC-1997 -31-DEC-1997 SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE IB LONG TERM OPER-PIMCO 7,000,000.00 US TREASURY NOTES 23-DEC-1997 912827ZX3 07.750% 02/15/2001 DD 02/15/91 24-DEC-1997 FC MORGAN STANLEY & CO INC, NY 24-DEC-1997 LONG TERM OPER-PIMCO -7,000,000.00 US TREASURY NOTES 23-DEC-1997 912827ZX3 07.750% 02/15/2001 DD 02/15/91 24-DEC-1997 BC MORGAN STANLEY & CO INC, NY ----------- LONG TERM OPER-PIMCO -7,000,000.00 US TREASURY NOTES 23-DEC-1997 912827ZX3 07.750% 02/15/2001 DD 02/15/91 24-DEC-1997 IBC ----------- LONG TERM OPER-PIMCO -7,000,000.00 US TREASURY NOTES 23-DEC-1997 912827ZX3 07.750% 02/15/2001 DD 02/15/91 24-DEC-1997 FCC MORGAN STANLEY & CO INC, NY 24-DEC-1997 LONG TERM OPER-PIMCO 7,000,000.00 US TREASURY NOTES 23-DEC-1997 912827ZX3 07.750% 02/15/2001 DD 02/15/91 26-DEC-1997 B MORGAN STANLEY & CO INC, NY ----------- LONG TERM OPER-PIMCO 7,000,000.00 US TREASURY NOTES 23-DEC-1997 912827ZX3 07.750% 02/15/2001 DD 02/15/91 26-DEC-1997 IB ----------- LONG TERM OPER-PIMCO 7,000,000.00 US TREASURY NOTES 23-DEC-1997 912827ZX3 07.750% 02/15/2001 DD 02/15/91 26-DEC-1997 FC MORGAN STANLEY & CO INC, NY 26-DEC-1997 LONG TERM OPER-PIMCO 3,600,000.00 US TREASURY NOTES 17-DEC-1997 9128272Wl 06.500% 05/31/2002 DD 06/02/97 23-JAN-1998 B MORGAN STANLEY & CO INC, NY ---------- Page 10 LOCAL AMOUNT/ COST/ GAIN LOSS 0.00 -7,599,993.21 -7,599,993.21 0.00 7,406,875.00 -7,406,875.00 0.00 193,118.21 0.00 0.00 7,599,993.21 7,599,993.21 0.00 -7,406,875.00 7,406,875.00 0.00 -196,066.58 0.00 0.00 -7, 602,941.58 -7, 602,941.58 0.00 -3,698,157.60 3,698,157.60 0.00 BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS 0 .00 0.00 -7,599,993 .21 0.00 0.00 0.00 7,406,875.00 -7,406,875.00 0 .00 0.00 193,118.21 0.00 0 .00 0.00 7,599,993.21 0.00 0.00 0.00 -7,406,875.00 7,406,875.00 0.00 0 .00 -196,066.58 0.00 0.00 0.00 -7, 602,941.58 0 .00 0 .00 0 .00 -3,698,157.60 3,698,157.60 0.00 0.00 BASE: USD TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ -----------1.000000000 105.812500 105.812500 1.000000000 105.812500 105.812500 1.000000000 105.812500 105.812500 1.000000000 105.812500 105.812500 1.000000000 105.812500 105. 812500 1.000000000 105.812500 105.812500 1.000000000 105.812500 105.812500 1.000000000 102. 726600 102. 726600 1.000000000 OCSG000100 CSDOC-CONSOLIDATED SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER MELLON TRUST POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE LOCAL AMOUNT/ COST/ GAIN LOSS BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS BASE: USD TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ --------------------------------------------------------LONG TERM OPER-PIMCO 3,600,000.00 US TREASURY NOTES 17-DEC-1997 9128272Wl 06.500% 05/31/2002 DD 06/02/97 23-JAN-1998 IB ----------- LONG TERM OPER-PIMCO 35,000,000.00 US TREASURY NOTES 07-NOV-1997 9128273D2 06.000% 08/15/2000 DD 08/15/97 01-DEC-1997 FC BANK OF NEW YORK, NEW YORK 01-DEC-1997 LONG TERM OPER-PIMCO 20,000,000.00 COMMIT TO PUR FHLMC GOLD 17-NOV-1997 999ABT030 7.000% 12/15/2027 22-DEC-1997 B FREDDIE MAC SECURITIES SALES & ----------- LONG TERM OPER-PIMCO 20,000,000.00 COMMIT TO PUR FHLMC GOLD 17-NOV-1997 999ABT030 7.000% 12/15/2027 22-DEC-1997 FC FREDDIE MAC SECURITIES SALES & 22-DEC-1997 LONG TERM OPER-PIMCO 10,000,000.00 COMMIT TO PUR FNMA 999ABT113 6.080% 12/25/2027 18-NOV-1997 23-DEC-1997 23-DEC-1997 FC BEAR STEARNS & CO INC, NY LONG TERM OPER-PIMCO 2,750,000.00 COMMIT TO PUR FHLMC 01-DEC-1997 999ABT444 7.000% 01/15/2028 14-JAN-1998 B GREENWICH CAPITAL MARKETS, INC----------- LONG TERM OPER-PJMCO 20,000,000.00 COMMIT TO PUR FH~MC GOLD 17-DEC-1997 999ABV993 7.000% 01/15/2021 26-JAN-1998 ~B FREDDIE MAC SECURITIES SALES & ----------- PAY UPS LONG TERM OPER-PIMCO 2,750,000.00 COMMIT TO PUR FHLMC 999434418 7.000% 12/15/2027 FC GREENWICH U.S. DOLLAR FIXED INCOME SECURITIES LONG TERM OPER-PIMCO 05-NOV-1997 ll-DEC-1997 ll-DEC-1997 -34, 714.29 -34,714.29 102.726600 0.00 0.00 102.726600 0.00 0.00 1.000000000 0 .00 -35,813,415 .95 -35,813,415.95 100. 563176 -35,813,415 .95 0.00 100. 563176 0 .00 0.00 1.000000000 0.00 -20,250,000.00 -20,250,000.00 101.250000 20,250,000.00 20,250,000.00 101.250000 0.00 0.00 1.000000000 0.00 -20,250,000.00 -20,250,000.00 101.250000 -20,250,000.00 0 .00 101. 250000 0.00 0 .00 l.000000000 0.00 -9,971,875.00 -9,971,875.00 99.718750 -9,971,875.00 0 .00 99.718750 0 .00 0.00 1.000000000 0 .00 -2,755,156.25 -2,755,156 .25 100.187500 2,755,156.25 2,755,156.25 100.187500 0.00 0 .00 1.000000000 0.00 -20,281,250.00 -20,281,250.00 101.406250 20,281,250.00 20,281,250.00 101.406250 0.00 0.00 1.000000000 0.00 -2,753,437.50 -2,753,437.50 100.125000 -2,753,437.50 0.00 100.125000 0.00 0 .00 1.000000000 0.00 Page 11 ) MELLON TRUST OCSG000100 CSDOC-CONSOLIDATED POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 SHARES/PAR VALUE SECURITY ID/ DE.SCRIPTION/ TRANS CODE BROKER EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE SALES 17,500.00 US TREASURY INFLATION INDEX NT 15-JUL-1997 9128273A8 3.625% 07/15/2002 DD 07/14/97 15-JUL-1997 PU ----------- LONG TERM OPER-PIMCO 17,500.00 US TREASURY INFLATION INDEX NT 15-JUL-1997 9128273A8 3.625% 07/15/2002 DD 07/14/97 15-JUL-1997 FC 31-DEC-1997 U.S. DOLLAR CASH & CASH EQUIVALENTS LONG TERM OPER-PIMCO -600,000.00 ABBOTT LABS DISC 00282AZQ2 12/24/1997 10-DEC-1997 10-DEC-1997 S LEHMAN BROS INC LONG TERM OPER-PIMCO -600,000.00 ABBOTT LABS DISC 00282AZQ2 12/24/1997 IS LONG TERM OPER-PIMCO -600,000.00 ABBOTT LABS DISC 00282AZQ2 12/24/1997 FC LEHMAN COML PAPER INC (LGSI), LONG TERM OPER-PIMCO -600,000.00 GENERAL ELEC CAP DISC 36959JAP8 01/23/1998 S MORGAN JP SECS INC, NEW YORK LONG TERM OPER-PIMCO -600,000.00 GENERAL ELEC CAP DISC 36959JAP8 01/23/1998 IS LONG TERM OPER-PIMCO 10-DEC-1997 10-DEC-1997 10-DEC-1997 10-DEC-1997 10-DEC-1997 10-DEC-1997 10-DEC-1997 10-DEC-1997 10-DEC-1997 -600,000.00 GENERAL ELEC CAP DISC 10-DEC-1997 36959JAP8 01/23/1998 10-DEC-1997 FC MORGAN JP SECS -FIXED INCOME 10-DEC-1997 LONG TERM OPER-PIMCO 6,700,000.00 WAL MART STORES DISC 26-NOV-1997 Page 12 LOCAL AMOUNT/ COST/ GAIN LOSS -----------17,500.00 17,500.00 0.00 -17,500.00 -17,500.00 0.00 598,061.00 -598 I 061. 00 0 .00 644.00 0.00 0.00 598,705.00 598,705.00 0.00 593,056.33 -593,056.33 0.00 2,653.67 0.00 0.00 595,710.00 595,710.00 0.00 -6 I 688 9 781. 21 BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS -----------17,500.00 17,500.00 0.00 0.00 -17,500.00 0.00 0.00 0.00 598,061.00 -598,061.00 0.00 0 .00 644.00 0.00 0.00 0.00 598,705.00 0.00 0 .00 0 .00 593,056.33 -593,056.33 0.00 0.00 2,653.67 0.00 0.00 0.00 595,710.00 0.00 0.00 0.00 -6, 688 I 781. 21 BASE: USD TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ -----------100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 99.676833 99.676833 1.000000000 99.676833 99.676833 1.000000000 99.676833 99.676833 1.000000000 98. 842721 98.842721 1.000000000 98.842721 98.842721 1.000000000 98. 842721 98 .842721 1.000000000 99.832555 OCSG000100 CSDOC-CONSOLIDATED SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER MELLON TRUST POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE LOCAL AMOUNT/ COST/ GAIN LOSS BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS BASE: USO TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ ----------------------------------------------------------------------------93114AZ16 12/01/1997 26-NOV-1997 6,688,781.22 6,688,781.22 99.832555 SC MORGAN JP SECS -FIXED INCOME -----------0.01 0.01 1.000000000 0.00 LONG TERM OPER-PIMCO 6,700,000.00 WAL MART STORES DISC 93114AZ16 12/01/1997 ISC LONG TERM OPER-PIMCO 26-NOV-1997 26-NOV-1997 6,700,000.00 WAL MART STORES DISC 26-NOV-1997 93114AZ16 12/01/1997 26-NOV-1997 FCC MORGAN JP SECS -FIXED INCOME 26-NOV-1997 LONG TERM OPER-PIMCO -6,700,000.00 WAL MART STORES DISC 93114AZ16 12/01/1997 S MORGAN JP SECS -FIXED INCOME LONG TERM OPER-PIMCO -6,700,000.00 WAL MART STORES DISC 93114AZ16 12/01/1997 IS LONG TERM OPER-PIMCO 26-NOV-1997 26-NOV-1997 26-NOV-1997 26-NOV-1997 -6,700,000.00 WAL MART STORES DISC 26-NOV-1997 93114AZ16 12/01/1997 26-NOV-1997 FC MORGAN JP SECS -FIXED INCOME 26-NOV-1997 LONG TERM OPER-PIMCO -17,000,000.00 GOLDMAN SACHS LP REPO 19-DEC-1997 99345G530 05.700% 12/19/1997 DD 12/18/97 19-DEC-1997 S GOLDMAN SACHS & CO, NY ----------- LONG TERM OPER-PIMCO -17,000,000.00 GOLDMAN SACHS LP REPO 19-DEC-1997 99345G530 05.700% 12/19/1997 DD 12/18/97 19-DEC-1997 IS ----------- LONG TERM OPER-PIMCO -17,000,000.00 GOLDMAN SACHS LP REPO 19-DEC-1997 99345G530 05.700% 12/19/1997 DD 12/18/97 19-DEC-1997 FC GOLDMAN SACHS & CO, NY 19-DEC-1997 -5,942.54 0.00 0.00 -6,694,723.75 -6,694, 723. 75 0.00 6,688,781.22 -6, 688,781.22 0.00 5,942.53 0.00 0.00 6,694,723.75 6,694,723.75 0.00 17,000,000.00 -17,000,000.00 0.00 Page 13 2,691.67 0.00 0 .00 17,002,691.67 17,002,691.67 0.00 -5,942.54 0 .00 0 .00 0.00 -6,694,723.75 0.00 0.00 0.00 6,688 ,781.22 -6, 688 ,781.22 0 .00 0.00 5,942 .53 0.00 0.00 0.00 6,694,723.75 0.00 0.00 0 .00 17,000,000.00 -17,000,000.00 0.00 0.00 2,691.67 0 .00 0 .00 0 .00 17,002,691.67 0 .00 0 .00 0.00 99.832555 99.832555 1.000000000 99.832555 99.832555 1.000000000 99.832555 99.832555 1.000000000 99.832555 99.832555 1.000000000 99.832555 99.832555 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 l.000000000 ------------- MELLON TRUST OCSG000100 CSDOC-CONSOLIDATED POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER LONG TERM OPER-PIMCO EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE -17,100,000.00 LEHMAN BROTHERS REPO 22-DEC-1997 99345H082 05.560% 12/22/1997 DD 12/19/97 22-DEC-1997 S LEHMAN GOVT SECS INC, NY ----------- LONG TERM OPER-PIMCO -17,100,000.00 LEHMAN BROTHERS REPO 22-DEC-1997 99345H082 05.560% 12/22/1997 DD 12/19/97 22-DEC-1997 IS ----------- LONG TERM OPER-PIMCO -17,100,000.00 LEHMAN BROTHERS REPO 22-DEC -1997 99345H082 05.560% 12/22/1997 DD 12/19/97 22-DEC-1997 FC LEHMAN GOVT SECS INC, NY 22-DEC-1997 LONG TERM OPER-PIMCO -17,300,000.00 LEHMAN BROTHERS REPO 23-DEC-1997 99345H959 05.610% 12/23/1997 DD 12/22/97 23-DEC-1997 S LEHMAN GOVT SECS INC, NY ----------- LONG TERM OPER-PIMCO -17,300,000.00 LEHMAN BROTHERS REPO 23-DEC-1997 99345H959 05.610% 12/23/1997 DD 12/22/97 23-DEC-1997 IS ----------- LONG TERM OPER-PIMCO -17,300,000.00 LEHMAN BROTHERS REPO 23-DEC-1997 99345H959 05.610% 12/23/1997 DD 12/22/97 23-DEC-1997 FC LEHMAN GOVT SECS INC, NY 23-DEC-1997 LONG TERM OPER-PIMCO -16,800,000.00 GOLDMAN SACHS LP REPO 26-DEC-1997 99345K044 05.550% 12/26/1997 DD 12/23/97 26-DEC-1997 S GOLDMAN SACHS & CO, NY ----------- LONG TERM OPER-PIMCO -16,800,000.00 GOLDMAN SACHS LP REPO 26-DEC-1997 99345K044 05.550% 12/26/1997 DD 12/23/97 26-DEC-1997 IS ----------- LONG TERM OPER-PIMCO -16,800,000.00 GOLDMAN SACHS LP REPO 26-DEC-1997 LOCAL AMOUNT/ COST/ GAIN LOSS 17,100,000.00 -17,100,000.00 0.00 7,923.00 0.00 0.00 17,107,923.00 17,107,923 .00 0.00 17,300,000.00 -17,300,000.00 0.00 2,695.92 0.00 0.00 17,302,695 .92 17,302,695.92 0.00 16,800,000 .00 -16,800,000.00 0.00 7,770.00 0.00 0 .00 16,807,770.00 Page 14 BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS 17,100,000.00 -17,100,000.00 0.00 0.00 7,923.00 0.00 0.00 0.00 17,107,923.00 0 .00 0.00 0 .00 17,300,000.00 -17,300,000.00 0.00 0.00 2,695 .92 0.00 0 .00 0 .00 17,302,695.92 0.00 0.00 0.00 16,800,000.00 -16,800,000.00 0.00 0.00 7,770.00 0.00 0.00 0.00 16,807,770.00 BASE: USO TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 OCSG000100 CSDOC-CONSOLIDATED SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER MELLON TRUST POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE LOCAL AMOUNT/ COST/ GAIN LOSS BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS BASE: USO TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ ----------------------------------------------------------------------------------------------------------------------99345K044 05.550% 12/26/1997 DD 12/23/97 26-DEC-1997 FC GOLDMAN SACHS & CO, NY 26-DEC-1997 LONG TERM OPER-PIMCO -9,100,000.00 LEHMAN BROTHERS REPO 29-DEC-1997 99345L604 05.460% 12/29/1997 DD 12/26/97 29-DEC-1997 S LEHMAN GOVT SECS INC, NY ----------- LONG TERM OPER-PIMCO -9,100,000.00 LEHMAN BROTHERS REPO 29-DEC-1997 99345L604 05.460% 12/29/1997 DD 12/26/97 29-DEC-1997 IS ----------- LONG TERM OPER-PIMCO -9,100,000.00 LEHMAN BROTHERS REPO 29-DEC-1997 99345L604 05.460% 12/29/1997 DD 12/26/97 29-DEC-1997 FC LEHMAN GOVT SECS INC, NY 29-DEC-1997 LONG TERM OPER-PIMCO -596,047.00 BSDT RESERVE DEPOSIT ACCOUNT- 999495906 PUBLIC II s LONG TERM OPER-PIMCO -598,061.00 BSDT RESERVE DEPOSIT ACCOUNT- 999495906 PUBLIC II s LONG TERM OPER-PIMCO -289,233.00 BSDT RESERVE DEPOSIT ACCOUNT- 999495906 PUBLIC II s LONG TERM OPER-PIMCO -3.00 BSDT RESERVE DEPOSIT ACCOUNT- 999495906 PUBLIC II s LONG TERM OPER-PIMCO -132,747.00 BSDT RESERVE DEPOSIT ACCOUNT- 999495906 PUBLIC II s 02-DEC-1997 02-DEC-1997 02-DEC-1997 03-DEC-1997 03-DEC-1997 03-DEC-1997 05-DEC-1997 05-DEC-1997 05-DEC-1997 09-DEC-1997 09-DEC-1997 09-DEC-1997 10-DEC-1997 10-DEC-1997 10-DEC-1997 Page 15 16,807,770.00 0.00 9 ,100,000.00 -9,100,000.00 0.00 4,140. so 0.00 0.00 9 ,104,140.50 9 ,104,140.50 0.00 596,047.00 -596,047.00 0.00 598,061.00 -598, 061. 00 0.00 289,233.00 -289,233 .00 0.00 3.00 -3.00 0.00 132,747.00 -132, 747 .00 0.00 0.00 100.000000 0.00 1.000000000 0.00 9 ,100,000.00 100.000000 -9,100,000.00 100.000000 0.00 1.000000000 0.00 4,140.50 100.000000 0.00 100.000000 0.00 1 .000000000 0.00 9, 104, 140. so 100.000000 0.00 100.000000 0 .00 1.000000000 0.00 596,047.00 1.000000 -596,047.00 1.000000 0.00 1.000000000 0.00 598,061.00 1.000000 -598, 061. 00 1.000000 0.00 1.000000000 0.00 289,233.00 1.000000 _j -289,233.00 1.000000 0.00 1.000000000 0.00 3.00 1.000000 -3.00 1.000000 0.00 1.000000000 0.00 132,747.00 1.000000 -132, 747. 00 1.000000 0.00 1.000000000 0.00 --- MELLON TRUST OCSG000100 CSDOC-CONSOLIDATED POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE LONG TERM OPER-PIMCO -3.00 BSDT RESERVE DEPOSIT ACCOUNT- 999495906 PUBLIC II s LONG TERM OPER-PIMCO -97,311.00 BSDT RESERVE DEPOSIT ACCOUNT- 999495906 PUBLIC II s LONG TERM OPER-PIMCO -57,597.00 BSDT RESERVE DEPOSIT ACCOUNT- 999495906 PUBLIC II s LONG TERM OPER-PIMCO -401,476.00 BSDT RESERVE DEPOSIT ACCOUNT- 999495906 PUBLIC II s LONG TERM OPER-PIMCO -65,978.00 BSDT RESERVE DEPOSIT ACCOUNT- 999495906 PUBLIC II s LONG TERM OPER-PIMCO -107,806.00 BSDT RESERVE DEPOSIT ACCOUNT- 999495906 PUBLIC II s INCOME SECURITIES LONG TERM OPER-PIMCO 18-DEC-1997 18-DEC-1997 18-DEC-1997 19-DEC-1997 19-DEC-1997 19-DEC-1997 23-DEC-1997 23-DEC-1997 23-DEC-1997 24-DEC-1997 24-DEC-1997 24-DEC-1997 29-DEC-1997 29-DEC-1997 29-DEC-1997 31-DEC-1997 31-DEC-1997 31-DEC-1997 U.S. DOLLAR FIXED -1,200,000.00 912827D25 s US TREASURY NOTES 05-DEC-1997 07.500% 11/15/2001 DD 11/15/91 08-DEC-1997 MORGAN STANLEY & CO INC, NY ----------- LONG TERM OPER-PIMCO -1,200,000.00 US TREASURY NOTES 05-DEC-1997 912827D25 07.500% 11/15/2001 DD 11/15/91 08-DEC-1997 IS ----------- LONG TERM OPER-PIMCO Page 16 LOCAL AMOUNT/ COST/ GAIN LOSS 3.00 -3 .00 0.00 97,311.00 -97,311.00 0.00 57,597.00 -57,597.00 0.00 401,476.00 -401,476.00 0.00 65,978.00 -65,978.00 0.00 107,806.00 -107,806.00 0.00 1 ,266,843.75 -1,270,166.30 -3,322.55 5,718.23 0.00 0.00 BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS 3.00 -3 .00 0.00 0.00 97,311.00 -97,311.00 0 .00 0 .00 57,597.00 -57,597.00 0.00 0.00 401,476.00 -401 ,476.00 0.00 0.00 65,978.00 -65,978.00 0.00 0.00 107,806.00 -107,806.00 0 .00 0.00 1,266,843.75 -1,270,166.30 -3,322.55 0.00 5,718.23 0.00 0.00 0.00 BASE: USD TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ 1.000000 1.000000 1.000000000 1.000000 1.000000 1.000000000 1.000000 1.000000 1.000000000 1.000000 1.000000 1.000000000 1.000000 1.000000 1.000000000 1.000000 1.000000 1.000000000 105. 570312 105. 570312 1.000000000 105. 570312 105. 570312 1.000000000 MELLON TRUST OCSG000100 CSDOC-CONSOLIDATED POSTED TRANSACTIONS -LOCAL/BASE Ol-DEC-1997 -31-DEC-1997 SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE -1,200,000.00 US TREASURY NOTES 05-DEC-1997 912827D25 07.500% 11/15/2001 DD 11/15/91 08-DEC-1997 FC MORGAN STANLEY & CO INC, NY 08-DEC-1997 LONG TERM OPER-PIMCO -3,600,000.00 US TREASURY NOTES 17-DEC-1997 9128272Wl 06.500% 05/31/2002 DD 06/02/97 17-DEC-1997 S MORGAN STANLEY & CO INC, NY ---------- LONG TERM OPER-PIMCO -3,600,000.00 US TREASURY NOTES 17-DEC-1997 9128272Wl 06.500% 05/31/2002 DD 06/02/97 17-DEC-1997 IS ----------- LONG TERM OPER-PIMCO -3,600,000.00 US TREASURY NOTES 17-DEC-1997 9128272Wl 06.500% 05/31/2002 DD 06/02/97 17-DEC-1997 FC MORGAN STANLEY & CO INC, NY 17-DEC-1997 LONG TERM OPER-PIMCO -35,000,000.00 US TREASURY NOTES 25-NOV-1997 9128273D2 06.000% 08/15/2000 DD 08/15/97 01-DEC-1997 FC HONG KONG & SHANGHAI BKG CORP, 01-DEC-1997 LONG TERM OPER-PIMCO -20,000,000.00 COMMIT TO PUR FHLMC GOLD 17-DEC-1997 999ABT030 7.000% 12/15/2027 22-DEC-1997 S FREDDIE MAC SECURITIES SALES & ---------- LONG TERM OPER-PIMCO -20,000,000.00 COMMIT TO PUR FHLMC GOLD 17-DEC-1997 999ABT030 7.000% 12/15/2027 22-DEC-1997 FC FREDDIE MAC SECURITIES SALES & 22-DEC-1997 LONG TERM OPER-PIMCO -10,000,000.00 COMMIT TO PUR FNMA 999ABT113 6.080% 12/25/2027 FC BEAR STEARNS & CO INC, NY LONG TERM OPER-PIMCO -2,750,000.00 COMMIT TO PUR FHLMC 999434418 7.000% 12/15/2027 S GREENWICH CAPITAL MARKETS, INC 20-NOV-1997 23-DEC-1997 23-DEC-1997 01-DEC-1997 ll-DEC-1997 LOCAL AMOUNT/ COST/ GAIN LOSS ------------1,272,561.98 1,272,561.98 0.00 3,700,125 .00 -3,654,703.12 45,421.88 10,928.57 0 .00 0.00 3,711,053.57 3,711,053.57 0.00 35,821,334.35 35,821,334.35 0.00 20,293,750.00 -20,250,000.00 43,750.00 20,293,750.00 20,293,750.00 0.00 9,980,468.75 9,980,468.75 0.00 2,758,714.92 -2,753,437.50 5,277.42 Page 17 BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS ------------1,272,561.98 0.00 0.00 0.00 3,700,125.00 -3,654,703.12 45,421.88 0.00 10,928.57 0 .00 0 .00 0.00 3,711,053.57 0.00 0.00 0.00 35,821,334.35 0.00 0 .00 0 .00 20,293,750.00 -20,250,000.00 43,750.00 0.00 20,293,750.00 0.00 0.00 0.00 9,980,468.75 0 .00 0.00 0.00 2,758,714.92 -2,753,437.50 5,277.42 BASE: USO TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ -----------105.570312 105. 570312 1.000000000 102.781250 102.781250 1.000000000 102.781250 102.781250 1.000000000 102.781250 102.781250 1.000000000 100.585800 100.585800 1.000000000 101.468750 101.468750 1.000000000 101. 468750 101. 468750 1.000000000 99.804688 99.804688 1.000000000 100. 316906 100. 316906 1.000000000 MELLON TRUST OCSG000100 CSDOC-CONSOLIDATED POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE LONG TERM OPER-PIMCO -2,750,000.00 COMMIT TO PUR FHLMC 01-DEC-1997 999434418 7.000% 12/15/2027 ll-DEC-1997 FC GREENWICH CAPITAL MARKETS, INC ll-DEC-1997 LONG TERM OPER-PIMCO 2,750,000.00 COMMIT TO PUR FHLMC 01-DEC-1997 999434418 7.000% 12/15/2027 11-DEC-1997 SC GREENWICH CAPITAL MARKETS, INC----------- LONG TERM OPER-PIMCO 2,750,000.00 COMMIT TO PUR FHLMC 01-DEC-1997 999434418 7.000% 12/15/2027 11-DEC-1997 FCC GREENWICH CAPITAL MARKETS, INC 11-DEC-1997 LONG TERM OPER-PIMCO -2,750,000.00 COMMIT TO PUR FHLMC 01-DEC-1997 999434418 7.000% 12/15/2027 ll-DEC-1997 s GREENWICH CAPITAL MARKETS, INC ----------- LONG TERM OPER-PIMCO -2,750,000.00 COMMIT TO PUR FHLMC 01-DEC-1997 999434418 7.000% 12/15/2027 ll-DEC-1997 FC GREENWICH CAPITAL MARKETS, INC 19-DEC-1997 PRINCIPAL PAYMENTS U.S. DOLLAR FIXED INCOME SECURITIES LONG TERM OPER-PIMCO -258,608.11 CHASE MANHATTAN GRAN 95-B CL A 15-DEC-1997 161614AE2 5.900% 11/15/2001 DD 11/15/95 15-DEC-1997 PD ----------- LONG TERM OPER-PIMCO -258,608.11 CHASE MANHATTAN GRAN 95-B CL A 15-DEC-1997 161614AE2 5.900% 11/15/2001 DD 11/15/95 15-DEC-1997 FC 15-DEC-1997 LONG TERM OPER-PIMCO -82,691.60 GNMA II POOL #0080023 01-DEC-1997 36225CAZ9 6.500% 12/20/2026 DD 12/01/96 01-DEC-1997 PD ----------- Page 18 LOCAL AMOUNT/ COST/ GAIN LOSS 2,758,714.92 2,758,714.92 0.00 -2 ,758,714.92 2,753,437.50 -5, 277. 42 -2,758,714.92 -2,758,714 .92 0.00 2,758,701.17 -2,753,437.50 5,263.67 2,758,701.17 2,758,701.17 0.00 258,608.11 -258,072 .71 535 .40 258,608.11 258,608 .11 0.00 82,691.60 -84, 061.18 -1,369.58 BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS 0.00 2,758,714.92 0.00 0 .00 0 .00 -2,758,714.92 2,753,437.50 -5,277.42 0 .00 -2,758,714.92 0 .00 0 .00 0 .00 2,758, 701.17 -2,753,437.50 5,263.67 0.00 2,758,701.17 0 .00 0 .00 0 .00 258 ,608.11 -258,072.71 535 .40 0.00 258,608 .11 0 .00 0 .00 0 .00 82,691.60 -84,061.18 -1,369.58 0.00 BASE: USO TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ 100.316906 100.316906 1.000000000 100. 316906 100.316906 l.000000000 100 .316906 100.316906 1.000000000 100.316406 100. 316406 1.000000000 100.316406 100.316406 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 OCSG000100 CSDOC-CONSOLIDATED SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER MELLON TRUST POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE LOCAL AMOUNT/ COST/ GAIN LOSS BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS BASE: USO TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ --------------------------------------------------------------------- LONG TERM OPER-PIMCO -82,691.60 GNMA II POOL #0080023 01-DEC-1997 36225CA29 6.500% 12/20/2026 DD 12/01/96 Ol-DEC-1997 FC 22-DEC-1997 LONG TERM OPER-PIMCO -64,451.67 GNMA II POOL #080088M 01-DEC-1997 36225CC20 7.000% 06/20/2027 DD 06/01/97 01-DEC-1997 PD ----------- LONG TERM OPER-PIMCO -64,451.67 GNMA II POOL #080088M 01-DEC-1997 36225CC20 7.000% 06/20/2027 DD 06/01/97 01-DEC-1997 FC 22-DEC-1997 MATURITIES U.S. DOLLAR CASH & CASH EQUIVALENTS INTEREST LONG TERM OPER-PIMCO -700,000.00 BELLSOUTH TELECOM DISC 07815]250 12/05/1997 MT BOND MATURITY LIQUID OPER-PIMCO -800,000.00 FED HOME LN MTG CORP DISC NTS 313397RC7 MAT 12/29/1997 MT BOND MATURITY LIQUID OPER-PIMCO 05-DEC-1997 05-DEC-1997 05-DEC-1997 29-DEC-1997 29-DEC-1997 29-DEC-1997 -100,000.00 FEDERAL NATL MTG ASSN DISCOUNT 19-DEC-1997 313589QS5 MAT 12/19/1997 19-DEC-1997 MT BOND MATURITY 19-DEC-1997 LONG TERM OPER-PIMCO -300,000.00 PROCTER & GAMBLE DISC 74271R283 12/08/1997 MT BOND MATURITY 08-DEC-1997 08-DEC-1997 08-DEC-1997 U.S. DOLLAR LONG TERM OPER-PIMCO 700,000.00 BELLSOUTH TELECOM DISC 07815]250 12/05/1997 IT 05-DEC-1997 05-DEC-1997 05-DEC-1997 82 I 691. 60 82 I 691. 60 0 .00 64 I 451. 67 -65, 861. 55 -1,409.88 64 I 451. 67 64 I 451. 67 0.00 697,746.00 -697,746.00 0.00 788,755.78 -788,755.78 0.00 98,464.33 -98,464.33 0.00 297,884.00 -297,884.00 0.00 2,254.00 2,254.00 0.00 82 ,691.60 0 .00 0.00 0.00 64,451.67 -65,861.55 -1,409.88 0.00 64 I 451. 67 0 .00 0.00 0 .00 697,746.00 -697,746.00 0.00 0.00 788,755.78 -788,755.78 0.00 0.00 98,464.33 -98,464.33 0.00 0.00 297,884.00 -297,884.00 0.00 0.00 2,254.00 0.00 0.00 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 100.000000 100.000000 1.000000000 0.000000 0.000000 1.000000000 ------------------------------------------------------------------------------- Page 19 OCSG000100 MELLON TRUST CS DOC-CONSOLIDATED POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE LONG TERM OPER-PIMCO 258,608.11 CHASE MANHATTAN GRAN 95-B CL A 15-DEC-1997 161614AE2 5.900% 11/15/2001 DD 11/15/95 15-DEC-1997 IT 15-DEC-1997 LIQUID OPER-PIMCO 800,000.00 FED HOME LN MTG CORP DISC NTS 313397RC7 MAT 12/29/1997 IT LIQUID OPER-PIMCO 29-DEC-1997 29-DEC-1997 29-DEC-1997 100,000.00 FEDERAL NATL MTG ASSN DISCOUNT 19-DEC-1997 313589QS5 MAT 12/19/1997 19-DEC-1997 IT 19-DEC-1997 LONG TERM OPER-PIMCO 7,100,000.00 FORD MOTOR CR MTN TR# 00177 30-DEC-1997 345402HJ3 VAR/RT 03/30/1999 DD 03/30/94 30-DEC-1997 IT 30-DEC-1997 LONG TERM OPER-PIMCO 82,691.60 GNMA II POOL #0080023 22-DEC-1997 36225CAZ9 6.500% 12/20/2026 DD 12/01/96 01-DEC-1997 IT 22-DEC-1997 LONG TERM OPER-PIMCO 64,451.67 GNMA II POOL #080088M 22-DEC-1997 36225CC20 7.000% 06/20/2027 DD 06/01/97 01-DEC-1997 IT 22-DEC-1997 LONG TERM OPER-PIMCO 300,000.00 PROCTER & GAMBLE DISC 74271RZ83 12/08/1997 IT LONG TERM OPER-PIMCO 08-DEC-1997 08-DEC-1997 08-DEC-1997 28,000,000.00 US TREASURY NOTES 01-DEC-1997 9128272Wl 06.500% 05/31/2002 DD 06/02/97 30-NOV-1997 IT 01-DEC-1997 LONG TERM OPER-PIMCO Page 20 LOCAL AMOUNT/ COST/ GAIN LOSS 23,010.65 23,010.65 0.00 11,244.22 11,244.22 0.00 1,535.67 1,535.67 0.00 100,189.75 100,189.75 0.00 24,738.86 24,738.86 0.00 34,444.21 34,444.21 0.00 2 ,116.00 2 ,116.00 0 .00 900,054.62 900,054.62 0.00 BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS 0.00 23,010.65 0 .00 0 .00 0 .00 11,244.22 0.00 0.00 0 .00 1,535.67 0 .00 0.00 0.00 100,189.75 0.00 0 .00 0 .00 24,738 .86 0.00 0.00 0.00 34,444.21 0.00 0.00 0.00 2,116.00 0 .00 0 .00 0 .00 900,054.62 0 .00 0.00 0.00 BASE: USD TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 0.000000 0.000000 1.000000000 ---- OCSG000100 CSDOC-CONSOLIDATED SHARES/PAR VALUE SECURITY ID/ DESCRIPTION/ TRANS CODE BROKER MELLON TRUST POSTED TRANSACTIONS -LOCAL/BASE 01-DEC-1997 -31-DEC-1997 EFFECTIVE DATE/ SETTLE DATE/ COMPL DATE LOCAL AMOUNT/ COST/ GAIN LOSS BASE AMOUNT/ COST/ INV GAIN LOSS/ CURR GAIN LOSS BASE; USO TMlOO LOCAL PRICE/ BASE PRICE/ BASE XRATE/ ---------------------------------------------------------17,290.00 US TREASURY INFLATION INDEX NT 28-NOV-1997 9128273A8 3.625% 07/15/2002 DD 07/14/97 15-JUL-1997 ITC 28-NOV-1997 LONG TERM OPER-PIMCO 0.00 US TREASURY INFLATION INDEX NT 28-NOV-1997 9128273A8 3.625% 07/15/2002 DD 07/14/97 28-NOV-1997 CD RECEIVED INTEREST 28-NOV-1997 NOVEMBER 1997 LONG TERM OPER-PIMCO 17,500.00 US TREASURY INFLATION INDEX NT 31-DEC-1997 9128273A8 3.625% 07/15/2002 DD 07/14/97 15-JUL-1997 IT 31-DEC-1997 LONG TERM OPER-PIMCO 0.00 SHORT TERM FDS INT ADJ 990000PJ4 NET OF OVERNIGHT INTEREST CW AND OVERDRAFT EXPENSES LONG TERM OPER-PIMCO 0.00 BSDT-LATE MONEY DEP ACCT 996087094 VAR RT DD 06/26/1997 IT LIQUID OPER-PIMCO 0.00 BSDT RESERVE DEPOSIT ACCOUNT- 999495906 PUBLIC II IT LONG TERM OPER-PIMCO 0.00 BSDT RESERVE DEPOSIT ACCOUNT- 999495906 PUBLIC II IT 31-0EC-1997 31-DEC-1997 31-DEC-1997 01-DEC-1997 01-DEC-1997 01-DEC-1997 01-DEC-1997 01-DEC-1997 Ol-DEC-1997 01-DEC-1997 01-DEC-1997 01-0EC-1997 Page 21 -17,290.00 -17 ,290.00 0.000000 -17,290.00 0.00 0.000000 0.00 0.00 1.000000000 0.00 17,290.00 17,290.00 0.000000 17,290.00 0.00 0.000000 0.00 0.00 1.000000000 0.00 17,500.00 17,500.00 0.000000 17,500.00 0.00 0.000000 0.00 0.00 1.000000000 0.00 -7,944.91 -7,944.91 0.000000 -7,944.91 0.00 0.000000 0.00 0.00 1.000000000 0.00 205.77 205. 77 0.000000 205. 77 0.00 0.000000 0.00 0.00 1.000000000 0.00 417.50 417.50 0.000000 417.50 0.00 0.000000 0.00 0.00 1.000000000 0.00 6 ,544.96 6,544.96 0.000000 6,544.96 0.00 0.000000 0.00 0.00 1.000000000 0.00 ' ) \ __ .) ' . FAHR COMMITTEE Meeting Date 01/21/98 AGENDA REPORT Item Number cl.. -County Sanitation Districts of Orange County, California FROM: Gary Streed, Director of Finance . Q ,II __ Originator: Steve Kozak, Financial Manage~ ToJt. Bds. 01/28/98 Item Number SUBJECT: Certificates of-Participation (COP) Monthly Report (All Districts) GENERAL MANAGER'S RECOMMENDATION Receive and file Certificates of Participation (COP) Monthly Report SUMMARY Since June 1995, the daily rate COP program remarketing agents have been PaineWebberforthe Series "A" and the 1993 Refunding COPs, and J.P. Morgan for the Series "C" COPs. Most fixed rate Series "8" COPs have been refunded and the 1992 Refunding COPs have always been remarketed by PaineWebber in a weekly mode. PROJECT/CONTRACT COST SUMMARY None. BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. [8] Not applicable (information item) ADDITIONAL INFORMATION Two graphical, and one tabular, reports are attached. The first graph entitled, "CSDOC COP Rate History Report," shows the variable interest rates on each of the daily rate COPs since the last report, and the effective fixed rate for the two refunding issues which are covered by an interest rate exchange agreement commonly called a "swap." \lnldonldata1'wp.dtallin\210'crane\FAHRIFAHR98\JANIFAHR98-02.dac RIIYised: 10/17197 Page 1 The second bar chart entitled, "Comparative Daily COP Rate History Report," shows the performance of the Districts' Daily Rate COPs as compared to a composite index rate, which represents the average rate of six similar variable rate daily reset borrowings. The table entitled, "Daily COP Rate Comparisons," shows the monthly variable interest rate performance of the Districts' Daily Rate COPs as compared to the composite index. Estimated annual interest payments calculated for a standard $100 million par amount, are also shown. Variable rates historically rise at the end of each calendar quarter, and especially at year-end, because of business taxes and statements. The rates decline to prior levels immediately in the following month. Staff will maintain our continuous rate monitoring and ongoing dialog with the remarketing agents and rating agencies to keep the Committee fully informed about developments in the program as they occur and at each meeting. ALTERNATIVES None. CEQA FINDINGS None. ATTACHMENTS 1. Graph -Comparative Daily COP Rate History Report 2. Graph -CSDOC COP Daily Rate History Report 3. Tabular -Daily COP Rate Comparison GGS:SK:lc \lradonldalll1\Np.dta\fin\210lcnlne\FAHRIFAHR98UANIFAHR98-02.doc RIMMCI: 101171D7 Page2 Prepared by Finance, 1 /8/98, 1 :24 PM COMPARATIVE DAILY COP RATE HISTORY REPORT DECEMBER 1997 6.00 .-------------------------------------------, 5.00 4.00 I I -~ -~ 3.00 ~ 2.00 1.00 0.00 DATE r--r--r--r--r--r--r--r--r--r--r--r--a, a, a, a, a, a, a, a, a, en a, a, r:-.rI ..: ..: >, r:-=i ci a. tf >-ti l'CI it l'CI a. l'CI ::J ::J Q) 0 Q) ..., :E <{ :E ..., ..., <{ en 0 z Cl CICSDOC • COMPOSITE INDEX I G :\excel .dta\fin\22 20\geggi\Finance\dailycopi ntrate .xis I J _) G) -0 ~ C CD -0 X l> I» 0 ~ -I RATE(%) CD ~ a. m C" =i '< 0 ..a. N !--' ~ OI !1' "Tl ::, '5" 1G 0 0 0 0 0 0 0 I» I\J ::, I\.) 0 0 0 0 0 0 0 0 0 _CD (C 01-Jan-~7 1 I lit I I I I I ~ CD (0 ~ (0 ~ _Ol :r co I» 0 ::, 0 15-Jan-97 co CD 29-Jan-97 )> $ ~ )> --l m 12-Feb-97 :I: en --l I (0 26-Feb-97 t I I __J..;b I * I • I I 0 --J 12-Mar-97 + I ~ I I * • I I en C 26-Mar-97 + I I ~ I * I • I I 0 09-Apr-97 f I I ~ I * • I I 0 0 23-Apr-97 t I I I l:::»* I • I I 0 +t 07-May-97 1J cC )>"'O 21-May-97 m~ -w G)-· ::, or-(/)Cl> 04-Jun-97 ~~ m -< Ill Cl> -0 O" 18-Jun-97 65 ~ O" (1) .... 02-Jul-97 m -t 16-Jul-97 :::c m ++ ~ :c 30-Jul-97 co -co en CJ)C.... 13-Aug-97 ~ -t 0~ c,. 0 G)~ (1)0 27-Aug-97 ~ ::, .... o;g ~::, 10-Sep-97 0) 24-Sep-97 t I I I ~ * I • I I :::0 m 08-Oct-97 + «l:R'". -* I • I I "'tJ 0 22-Oct-97 + I I I ~ I * I •• I I :::0 -t I I I I ' I ,-I I 05-Nov-97 19-Nov-97 03-Dec-97 17-Dec-97 31-Dec-97 Prepared by Finance, 1/15/98, 7:42 AM Jan-97 Feb-97 Mar-97 Apr-97 May-97 Jun-97 Jul-97 Aug-97 Sep-97 Oct-97 Nov-97 Dec-97 AVERAGE DAILY COP RATE COMPARISONS(%) JAN -DEC, 1997 CSDOC $100M $98.5M $46M Series"A" Series"C" Series 93 Ref PaineWebber J.P. Morgan PaineWebber 3.37 3.36 3.37 2.85 2.90 2.85 2.79 2.84 2.79 3.55 3.62 3.55 3.79 3.86 3.79 3.80 3.82 3.80 3.17 3.12 3.17 3.17 3.20 3.17 3.53 3.63 3.53 3.46 3.51 3.46 3.68 3.69 3.68 3.29 3.35 3.29 3.37% 3.41% 3.37% ESTIMATED ANNUAL INTEREST PAYMENTS PER $100M PAR AMOUNT $ 3,370,833 $ 3,408,333 $ 3,370,833 * FOOTNOTE Composite index consists of the following COP transactions: . IRWD, Series 86, $60M, Smith Barney . IRWD, Series 93 "A" Refunding, $87.6M, Bankers Trust . IRWD, Series 93 "B" Refunding, $41.8M, J.P. Morgan . IRWD, Series 95 Refunding, $117.8M, PaineWebber Composite Index• 3.27 3.08 2.70 3.59 3.71 3.79 3.10 3.05 3.60 3.38 3.68 3.33 3.36% $ 3,356,667 . Western Riverside Co. Reg. Wastewater Auth., Series 96, $25.4M, PaineWebber . Orange Co., Irvine Coast Asst. Dist. 88-1, $94.SM, J.P. Morgan G:\excel.dta\fin\2220\geggi\Finance\COPdaily$rate comparison l •• FAHR COMMITTEE~ Meeting D_ate To Jt. Bds. 1/28/98 1/28/98 AGENDA REPORT Ite~~mber Item Number County Sanitation Districts of Orange County, California FROM: Mike Peterman, Director of Human Resources SUBJECT: DEFERRED COMPENSATION PROGRAM GENERAL MANAGER'S RECOMMENDATION Approve amended deferred compensation program for Executive Management, Management, Supervisory, Professional, and Confidential employees as outlined in Option #3 of the attached memorandum from General Counsel. SUMMARY The Districts have had a Deferred Compensation Plan for the benefit of employees and Directors since 1978. This is a Plan similar to that in place with most cities and counties, in that it provided a significant tax deferral program to employees without significant cost to the employer agency. Additionally, the Districts have adopted a Deferred Compensation Program, which has been in place since 1986 and 1987. The program provides for additional "matching" and "non-matching" compensation to certain groups of employees according to the table below: Employee Group Matching Non-matching GM andAGM * $8,000 Executive Management 3% 3% Management/Supervisory 2% 2% Professional/Confidential 1% 2% By approving the proposed resolution, the Boards are effectively making two changes to the existing deferred compensation program. 1. It removes the 3-year vesting period which has been determined by General Counsel to be in conflict with the California Supreme Court decision in Ventura (see attached memorandum from General Counsel). 2. As a non-substantive language change, it redefines employer "contributions" to "supplemental salary" in order to satisfy the requirements of law as set forth by the Supreme Court. This will allow employer contributions to continue to be counted towards "final compensation" for our employees in the Orange County Employees Retirement System. G:lnlglobal\Agenda Draft Reports\FAHR\Deletred Compensation.doc Revised: 10/17/97 Page 1 BUDGET IMPACT "' I D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. · 12] Not applicable (information item) ATTACHMENTS Memorandum from General Counsel Deferred Compensation Resolution G:lntglobal\Agenda Draft Repons\FAHR\Oeferred CcmpensaUon.doc Revised: 10/17197 Page2 ... . I.AW OFFICES OF WOODRUFF, SPRADLIN & SMAl) A PROFESSIONAL CoRPORAllON TO: FROM: DATE: RE: MEMORANDUM Chair and Members of Finance, Administration and Human Resources Committee General Counsel January 13, 1998 Districts' Deferred Compensation Plan and Program For Employees; Effect of Supreme Court Decision Ventura County Deouty Sheriffs Association v, Board of Retirement of Ventura County Emolovees' Retirement Association The Districts have had a Deferred Compensation Plan for the benefit of their employees and Directors since 1978. This is a Plan similar to that in place with most cities and counties, in that it provides a tremendous tax deferral program to employees without any cost to the employer agency. Additionally, the Districts have adopted a Deferred Compensation Program which has been in place since 1986 and 1987. The Program provides for the Districts, as the employer, to make additional compensation contributions to the Executive Management, Management, and Supervisory and Professional employee groups, which amounts are deposited to the individual employee's deferred compensation account. The Program consists of two parts, providing for both "matching funds" and "non-matching funds". Under the former, the Districts contribute either 3% or 1 % respectively to the employee's account, contingent upon the employee likewise contributing the same amount into his or her deferred compensation account. For the non-matching program, the Districts likewise contribute a sum equal to 3% or 2% respectively of the employee's salary without any requirement for participation in the Plan by the employee. For the General Manager and Assistant General Manager(s), the Districts provide a lump sum of $7,500 as a non- matching funds contribution. At the time of the adoption of the Program, one of the reasons was thought to be an incentive to retain employees, and included a provision requiring 3 years of employment and 3 years of contributions to the Plan in order for the employee to obtain vested ownership rights in the amounts contributed by the Districts. As the General Manager's Report would indicate, there are several changes in circumstances that exist between the Districts and their employees at the present time, which effectively negate the 2092-100 57332_1 Chair and Members of FAHR Committee January 13, 1998 Page 2 underlying reasons for vesting that were adopted in 1988. There are 2 very significant events that have occurred recently relating to both the Deferred Compensation Plan and Program of the Districts. The first is the enactment by the United States Congress of amendments to Internal Revenue Code Section 457, generated largely because of the Orange County bankruptcy. Among the changes are that the employer agency must now transfer the monies being held for its employees under the deferred compensation plan to a trustee or custodial account. The purpose of this is to prevent these monies, which are really intended for the individual employees, from being reached by creditors of the public agency in the event of a bankruptcy. The Districts' Plan has now been amended by my office in conformity with the Internal Revenue Code changes and is scheduled for presentation to the Joint Boards at their regular February meeting. Nothing in those changes imposes additional cost or expense upon the Districts, and particularly does not provide additional benefits to the employees. Because the legal ownership of deferred compensation funds will now be transferred from the Districts to a trust account, it is my opinion that the legal ability to enforce the vesting provisions is greatly impaired, with the distinct possibility that it would be held to be unenforceable. The second major change is a recent decision by the California Supreme Court in the case of Ventura County Deputy Sheriffs Association v. Board of Retirement of Ventura County Employees' Retirement Association. This is an action challenging the amount of reported "includable compensation" upon which an individual employee's retirement benefits are calculated. Ventura County operates under the same Retirement System Act as Orange County, of which the Districts are a contract member. The court held that employer contributions to an individual employee's retirement plan are not specifically addressed and provided for in the Retirement System Act, and as such, do not qualify as includable compensation. It has been the past practice of the Orange County Employees Retirement System ("OCERS") to in fact accept the sums paid by the Districts to the employees as the employer's share, under both matching and non- matching contribution programs, as part of the total compensation paid to the employee. By example, rf an employee had a base satary of $50,000 and the Districts contributed 3% matching and 3% non-matching to the employee's account, the additional 6% or $3,000 was reported to OCERS on the basis that the employee's total salary compensation was $53,000. Ultimately, at time of retirement, that number would be the salary upon which the retirement benefits would be calculated. 2092-100 57332_1 Chair and Members of FAHR Committee January 13, 1998 Page 3 It is my opinion that the existing Deferred Compensation Program provisions requiring a 3-year vesting period, fail to comply with the mandate of the Supreme Court decision in Ventura. If the Districts were to maintain the vesting provisions in their Program, the amount of money contributed by the Districts as employer's share to the deferred compensation account of the individual employee, could not be reported to OCERS as a part of the salary. In effect, this would result in a reduction of total compensation benefits from what is presently provided to the individual employees. Specifically, because the lesser amount would be reported as includable compensation to OCERS, the final retirement benefits payable to the employees would be reduced. TLW:mrs cc: Mr. D.F. McIntyre Mr. B.P. Anderson Mr. G.G. Streed Mr. M. L. Peterman 2092-100 57332_1 ~.d:i:~· GENERAL COUNSEL OPTIONS 1. DO NOTHING. MAKE NO CHANGES TO PROGRAM. • RETAIN THE 3-YEAR VESTING PERIOD. • CONTINUE PAYING THE MATCHING AND NON-MATCHING PERCENTAGES TO THE EMPLOYEES. • THE AMOUNTS PAID BY THE DISTRICTS AS A PERCENTAGE OF BASE SALARY FOR BOTH MATCHING AND NON-MATCHING FUNDS CANNOT BE GIVEN TO OCERS. .. THE AMOUNTS DO NOT MEET THE "VENTURA" TEST. • PRESENT EMPLOYEES WILL HAVE THE VALUE OF THEIR PRESENT COMPENSATION REDUCED. .. OCERS BENEFIT PAYMENTS UPON RETIREMENT WILL BE REDUCED. .. As TO PROFESSIONAL AND SUPERVISORY EMPLOYEES, IT MAY BE A BREACH OF CONTRACT. ... ExlSTING MOU SPECIFICALLY PROVIDES FOR MATCHING AND NON- MATCHING FUNDS TO BE PAID BY DISTRICTS AND PAST PRACTICE ADDED IT TO OCERS. • POSSIBLE VIOLATION OF IRC § 457. 2. CHANGE PROGRAM RESOLUTION -RETAIN VESTING PROVISIONS. 2092-100 57332_1 • REDEFINE EMPLOYER "CONTRIBUTIONS" TO "SUPPLEMENTAL SALARY". .. No $ CHANGE OR COST TO DISTRICTS. .. NEW LANGUAGE SATISFIES THE "VENTURA" TEST. ... $ IS PAID TO EMPLOYEE, THEN DEDUCTED, THEN PAID INTO DEFERRED COMPENSATION ACCOUNT. • VESTING PROBABLY CAUSES THE FAILURE OF THE "VENTURA" TEST. .. DELAYED VESTING PERIOD MEANS EMPLOYEE DOES NOT HAVE CONTROL OVER THE MONEY (E.G., TO AUTHORIZE DEDUCTION OF DEFERRED COMPENSATION ACCOUNT. .. RISK OF LEGAL CHALLENGE THAT LANGUAGE CHANGE IS ONLY FORM OVER SUBSTANCE AND THEREFORE INVALID. .. IF THE $ IS PAID OVER TO THE EMPLOYEE -- ... How WOULD DISTRICTS GET $ BACK? ... VESTING PROBABLY UNENFORCEABLE. • POSSIBLE VIOLATION OF IRC § 457. •• IF NO VESTING FOR 3 YEARS, ALL DEFERRED AMOUNTS WOULD VEST TO THE EMPLOYEE IN YEAR NUMBER 4 AND EXCEED THE MAXIMUM ALLOWED CONTRIBUTION PER YEAR. 3. CHANGE PROGRAM RESOLUTION -DELETE VESTING PROVISION. 2092-100 57332_1 • REDEFINE EMPLOYER "CONTRIBUTIONS" TO "SUPPLEMENTAL SALARY". .. No$ CHANGE OR COST TO DISTRICTS. .. NEW LANGUAGE SATISFIES THE "VENTURA" CASE. .. OCERS CONSIDERS IT VALID. ... WILL ACCEPT THE ADDED SUMS AS PART OF "COMPENSATION". .. No LOSS OR REDUCTION OF BENEFITS TO EMPLOYEES FROM PRESENT LEVELS. .. No BREACH OF CONTRACT ISSUES OR CLAIM. .. No VIOLATION OF IRC § 457. .. No ENFORCEABILITY ISSUES. THE CHANGE OF THE RESOLUTION LANGUAGE IS VALID AND LEGITIMATE. SINCE THE INCEPTION OF THE PROGRAM ADOPTED BY THE BOARDS, ALL INTERESTED PERSONS (0ISTRICTS- EMPLOYER, THE EMPLOYEES, OCERS AND IRS) CONSIDERED THIS AS PAYMENT OF AN ADDITIONAL AMOUNT OF SALARY ABOVE THE EMPLOYEES' BASE SALARY. IN FACT THE DISTRICTS' ACCOUNTING/PAYROLL DEPARTMENT PROCESSED IT AS SUCH. THE RESOLUTION SIMPLY USED PRACTICAL, AS OPPOSED TO TECHNICAL, LEGAL LANGUAGE BY REFERRING TO THE MATCHING AND NON-MATCHING FUNDS AS EMPLOYER "CONTRIBUTIONS". THIS RECOMMENDED CHANGE SIMPLY COMPORTS THE LANGUAGE TO THE SUPREME COURT INTERPRETATION OF THE STATUTE. 2092-100 57332_1 RESOLUTION NO. __ _ APPROVING AMENDED DEFERRED COMPENSATION PROGRAM FOR EXECUTIVE MANAGEMENT GROUP EMPLOYEES AND MANAGEMENT, SUPERVISORY, PROFESSIONAL AND CONFIDENTIAL EMPLOYEES A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF COUNTY SANITATION DISTRICTS NOS. 1, 2, 3, 5, 6, 7, 11, 13 AND 14 OF ORANGE COUNTY, CALIFORNIA, APPROVING REVISIONS TO THE DEFERRED COMPENSATION PROGRAM FOR THE EXECUTIVE MANAGEMENT GROUP EMPLOYEES (GENERAL MANAGER, ASSISTANT GENERAL MANAGERS AND DEPARTMENT HEADS) AND MANAGEMENT, SUPERVISORY, PROFESSIONAL AND CONFIDENTIAL EMPLOYEES OF THE DISTRICTS, AND REPEALING RESOLUTION NO. 95-81 ********************** WHEREAS, in conjunction with the Districts' Deferred Compensation Plan, the Districts, by Resolution No. 95-81, adopted by the Boards of Directors on July 26, 1995, have previously approved specified Districts' payments of salary compensation to classes of employees in addition to the base salary for the employees, which payments consisted of contributions to the individual deferred compensation accounts of the General Manager, Assistant General Managers and Department Heads (collectively described as the "Executive Management Group"), and certain Management, Professional and Supervisory employees of the Districts. NOW THEREFORE, the Boards of Directors of County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California, 2093-100 57538_1 WS&S Draft No.2 January IS, 1998 DO HEREBY DETERMINE, RESOLVE AND ORDER: Section 1: Supplemental Salary. A. General Manager and Assistant General Managers. That the Districts hereby approve the payment, to the General Manager and to each Assistant General Manager, of supplemental salary in an annual sum equal to the maximum permissible dollar amount of deferred compensation under an IRC Section 457 deferred compensation plan, as prescribed by the Internal Revenue Code or U.S. Treasury Department Regulations (the "Supplemental Salary for General/Assistant General Managers"), which shall be in addition to the base salary. The Supplemental Salary for General/Assistant General Managers shall be first added to the base salary, and then deducted therefrom and deposited into the respective individual deferred compensation accounts of the General Manager and each of the Assistant General Managers. B. Department Heads. That the Districts hereby approve the payment of supplemental salary, in an annual sum equal to a maximum of three (3%) percent of the gross annual base salary of each Department Head (the "Matching Supplemental Salary for Department Heads"), provided that each such employee voluntarily withholds from his/her salary and contributes an equal sum to his/her individual deferred compensation account. The Matching Supplemental Salary for Department Heads shall be first added to the-base-salary, and then deducted therefrom and deposited into-the respective individual deferred compensation accounts of the Department Heads. That the Districts hereby approve the additional payment of supplemental salary, 2093-100 S7538_1 WS&S Draft No.2 January 15, I 998 2 in an annual sum equal to three (3%) percent of the gross annual base salary of each Department Head (the "Non-Matching Supplemental Salary for Department Heads"), exclusive of the Matching Supplemental Salary for Department Heads, as hereinabove described, without the requirement of any matching contribution by the individual employees. The Non-Matching Supplemental Salary for Department Heads shall be first added to the base salary, and then deducted therefrom and deposited into the respective individual deferred compensation accounts of the Department Heads. That in the event the total annual sum contributed to the individual deferred compensation account of a Department Head, comprised of the three (3%) percent Non-Matching Supplemental Salary for Department Heads, the three (3%) percent Matching Supplemental Salary for Department Heads, and the three (3%) percent matching funds contributions from the respective employee, exceeds the maximum permissible dollar amount of deferred compensation under an IRC Section 457 deferred compensation plan, as prescribed by the Internal Revenue Code or U.S. Treasury Department Regulations, the Districts shall continue to provide the three (3%) percent Non-Matching Supplemental Salary for Department Heads, and the three (3%) percent Matching Supplemental Salary for Department Heads, to the extent that such total Matching/Non-Matching Supplemental Salary for Department Heads does not exceed the maximum allowed by iaw, and the individual employee shall only be required to contribute such matching funds contributions as will provide a total of all contributions that will equal the maximum allowed by law. 2093-100 57538_1 WS&S Draft No.2 January 15, 1998 3 C. Management and Supervisory Employees. That the Districts hereby approve the payment of supplemental salary, in an annual sum equal to a maximum of two (2%) percent of the gross annual base salary of the respective Management and Supervisory employees (collectively the "Matching Supplemental Salary for Management and Supervisory Employees"), provided each such employee voluntarily withholds from his/her salary and contributes an equal sum to his/her individual deferred compensation account. The Matching Supplemental Salary for Management and Supervisory Employees shall be first added to the base salary, and then deducted therefrom and deposited into the respective individual deferred compensation accounts of the Management and Supervisory Employees. That the Districts hereby approve the additional payment of supplemental salary, in an annual sum equal to two (2%) percent of the gross annual base salary of each of the respective Management and Supervisory employees described herein (the "Non- Matching Supplemental Salary for Management and Supervisory Employees"), exclusive of the Matching Supplemental Salary for Management and Supervisory Employees amount, as hereinabove described, without the requirement of any matching contribution by the individual employees. The Non-Matching Supplemental Salary for Management and Supervisory employees shall be first added to the base salary, and then deducted therefrom and deposited into the respecti-ve individual deferred compensation accounts of the Management and Supervisory employees. 2093-100 57538_1 Ws&S Draft No.2 January 15. 1998 D. Professional and Confidential Employees. That the Districts 4 hereby approve the payment of supplemental salary, in an annual sum equal to a maximum of one (1%) percent of the gross annual base salary of the respective Professional and Confidential employees (collectively the "Matching Supplemental Salary for Professional and Confidential Employees"), provided each such employee voluntarily withholds from his/her salary and contributes an equal sum to his/her individual deferred compensation account. The Matching Supplemental Salary for Professional and Confidential Employees shall be first added to the base salary, and then deducted therefrom and deposited into the respective individual deferred compensation accounts of the Professional and Confidential Employees. That the Districts hereby approve the additional payment of supplemental salary, in an annual sum equal to two (2%) percent of the gross annual base salary of each of the respective Professional and Confidential employees described herein (the "Non- Matching Supplemental Salary for Professional and Confidential Employees"), exclusive of the Matching Supplemental Salary for Professional and Confidential Employees amount, as hereinabove described, without the requirement of any matching contribution by the individual employees. The Non-Matching Supplemental Salary for Professional and Confidential employees shall be first added to the base salary, and then deducted therefrom and deposited into the respective individual deferred compensation accounts of the Professional and ConfKiential employees. E. Vesting. All Supplemental Salary, as described in Paragraphs A, B, C and/or D above, shall vest upon deduction from the total compensation (the sum of 2093-100 57538 1 WS&S Draft No.2 January 15. 1998 5 base salary plus supplemental salary) payment and deposit into the respective individual deferred compensation accounts. In addition, all amounts described in Resolution No. 95-81 as "Districts Matching Funds Contributions" or "Districts Non- Matching Funds Contributions" that have been previously deposited into the respective individual deferred compensation accounts of the employees described in that Resolution, shall be deemed vested as of the date of this Resolution. Once Supplemental Salary, as described in Paragraphs A, B, C and/or D above, and Districts Matching Funds Contributions and Districts Non-Matching Funds Contributions, as described in Resolution No. 95-81, have vested as described in this Paragraph E, they may thereafter be withdrawn only to the extent otherwise permitted under the Deferred Compensation Plan. Section 2: This program shall be for the benefit of the employees comprising the Executive Management Group (General Manager, Assistant General Managers and Department Heads) and Management, Supervisory, Professional and Confidential employees. The employment classifications of those employees are set forth on Attachment "1", which is incorporated herein by reference, and shall be terminated only by action of the Boards of Directors. In the event other classifications are added to the category of Executive Management Group and Management, Supervisory, Professional and Confidential employees by action of the General Manager or Boards of Directors of Districts, said classifications shaH be deemed to be governed by this Resolution concurrently therewith. 2093-100 S7S38_1 WS&S Draft No.2 January 15, 1998 6 Section 3: The General Manager and Director of Human Resources are hereby authorized to execute individual Deferred Compensation Participation Agreements with each eligible employee, and are further authorized to execute any and all documents relating to investment and payment transactions relating to the Deferred Compensation Plan, provided that such documents are approved as to form by the Districts' General Counsel. Section 4: Resolution No. 95-81 is hereby repealed, and the provisions herein shall become effective upon adoption of this Resolution. The provisions herein shall remain in effect until amended or terminated by Resolution of the Boards of Directors. PASSED AND ADOPTED at a regular meeting held ____ , 1998. 2093-100 57538_1 WS&S Draft No.2 January 15, 1998 7 ATTACHMENT "1" EXECUTIVE MANAGEMENT GROUP General Manager Assistant General Manager Department Heads: A. Director of Communications 8. Director of Engineering C. Director of Finance D. Director of General Services Administration E. Director of Human Resources F. Director of Information Technology G. Director of Maintenance & Operations H. Director of Technical Services MANAGEMENT Controller Financial Manager Construction Manager Engineering Manager Environmental Compliance & Monitoring Manager Laboratory Manager Source Control Manager Chief Scientist Accounting Manager Chief Operator Safety & Emergency Response Manager Maintenance Manager Operations Manager Contracts & Purchasing Manager Secretary to the Boards of Directors Training Manager Human Resources Manager 2093-100 57538_1 WS&S Draft No.2 January 15, 1998 8 SUPERVISORY Engineering Supervisor Environmental Management Supervisor Senior Engineer Compliance Supervisor Laboratory Supervisor Senior Scientist Senior Operations Supervisor Maintenance Supervisor Operations Supervisor Principal Accountant Principal Financial Analyst Source Control Supervisor Supervising Construction inspector Training Supervisor Foreman Maintenance Planner Supervising Buyer Supervising Source Control Inspector 2093-100 57538_1 WS&S Draft No.2 January 15, 1998 9 PROFESSIONAL Engineer Principal administrative Assistant Principal Engineering Associate Project Specialist Regulatory Specialist Scientist Associate Engineer Ill Principal Environmental Specialist Programmer Analyst Computer Hardware Specialist Telecommunications Specialist Senior Human Resources Analyst Principal Laboratory & Research Analyst Senior Administrative Assistant Associate Engineer II Senior Accountant Senior Financial Analyst Safety Representative Programmer Associate Engineer I Human Resources Analyst Accountant Buyer Financial Analyst CONFIDENTIAL Executive Assistant II Executive Assistant I Human Resources Assistant 2093-100 57538_1 WS&S Draft No.2 Janwuy 15, 1998 10 FAHR COMMITTEE -~ Meeting Date To Jt. Bds. 1/28/98 1/28/98 AGENDA REPORT Item4~mber Item Number County Sanitation Districts of Orange County, California FROM: Mike Peterman, Director of Human Resources SUBJECT: EARLY RETIREMENT INCENTIVE PROGRAM GENERAL MANAGER'S RECOMMENDATION Consideration of the following actions relative to the proposed adoption of Emergency Ordinance No. 135, An Ordinance of the Board of Directors of County Sanitation District No. 1 of Orange County, California, providing for an early retirement Incentive Program by granting additional service credit to eligible Districts' employees as authorized by the County Employees' Retirement Law of 1937, Government Code Section 31641.04 (FAHR95-24): a) Verbal report of General Counsel. b) Consideration of roll call vote motion approving the program and authorizing Districts to enact an Emergency Ordinance implementing the program. c) Consideration of motion to read said Ordinance No. 135 by title only, and waive reading of entire ordinance (must be adopted by unanimous vote of Directors present). d) Consideration of motion to introduce Ordinance No. 135. e) Consideration of motion to adopt Ordinance No. 135. SUMMARY The Boards have approved all Early Retirement Incentive Programs for each of the last three fiscal years. During those three years, 26 employees have retired early. Three of th_ose positions were refilled. From the positions that were deleted the Districts saved or will save $4.4 million through fiscal year 1999. Savings were projected through 1999 because it is the first year we realize the full savings of the 1997 early retirements. Staff believes that it would again be prudent to offer this program because of the significant savings and accelerated attrition that has been demonstrated. Staff has inventoried the positions where the incumbent employee is eligible to participate in this program. We have concluded that, due to changes of organization and the method of providing services, no impairment to Districts' operations would result from the approval and implementation of this program. At least six employees have expressed strong interest in early retirement. If this program is adopted, eligible employees with a minimum of ten years of service and 50 years of age would be granted two additional years of service credit for retirement purposes, provided they retire from employment between February 1, 1998 and March 30, 1998. \\leadldala1lntglobal\Agenda Draft Reports\FAHR\Ear1yReUre~t1998.doc Revised: 10/17/97 Page 1 Another reason for offering early retirement to employees at th1::; time is a recent ruling in the case of Ventura County Deputy Sheriffs Association vs. Board of Retirement of the Ventura County Employees' Retirement Association. The attached memorandum from Mike Peterman to all affected employees, and agenda item nu.mber three regarding deferred compensation explains how employees can avoid a potential loss of 1 -6 pei:cent in their retirement benefit if they retire prior to February 10, 1998. BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. [gl Not applicable (information item) ATTACHMENTS Ordinance 135 Spreadsheet "Early Retirement Analysis" Early Retirement Memorandum \\lead'dala1\ntgtobal\Agenda Draft ReportslFAHR\EartyReUrement1998.doc Revised: 10/17/97 Page2 ORDINANCE NO. 135 PROVIDING ADDITIONAL SERVICE CREDIT TO ELIGIBLE DISTRICT EMPLOYEES WHO RETIRE EARLY AN ORDINANCE OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICTS NO. 1 OF ORANGE COUNTY, CALIFORNIA, PROVIDING FOR AN EARLY RETIREMENT INCENTIVE PROGRAM BY GRANTING ADDITIONAL SERVICE CREDIT TO ELIGIBLE DISTRICT EMPLOYEES AS AUTHORIZED BY THE COUNTY EMPLOYEES RETIREMENT LAW OF 1937, GOVERNMENT CODE SECTION 31641.04 WHEREAS, the Board of Directors of County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California have previously adopted Resolutions and Ordinances approving early retirement incentive programs for all eligible District employees as authorized by Government Code Section 31641.04; and WHEREAS, previously adopted incentive programs were, as provided by law, for a fixed period of time, each of which has now expired; and WHEREAS, Districts' management has reported to the Boards the desirability of implementing a further early retirement incentive program due to the implementation of changes in the manner of performing Districts services and the savings of money and other economic benefits that will flow to the Districts by the retirement of eligible employees; and WHEREAS, pursuant to the provisions of the Joint Ownership Operation and Construction Agreement by and among County Sanitation Districts Nos . 1, 2, 3, 5, 6, 7, 11, 2092-800 57424_1 -1- 13 and 14, District No. 1 is the appointed authorized agent to act for every other District; and WHEREAS, the Board of Directors of County Sanitation District No. 1, acting as agent for County Sanitation Districts Nos. 2, 3, 5, 6, 7, 11, 13 and 14 have determined that changes in the manner of performing District services and the total cost savings of having higher compensated employees retire early will exceed the total actuarial costs of the additional service credit granted to those who retire under this program. NOW, THEREFORE, the Board of Directors of County Sanitation District No. 1 of Orange County, California, does hereby ORDAIN: Section 1: Government Code Section 31641.04 as a component provision of the County Employees Retirement Law of 1937 is hereby adopted and deemed applicable to all regular full time employees by the Board of Directors upon the adoption of this Ordinance. Section 2: All regular full time employees of the County Sanitation Districts of Orange County, California who are eligible to participate as members and retire under the Orange County Employees Retirement System, shall be granted two (2) additional years of service credit for retirement benefit purposes, provided they retire from regular employment of the Districts during the period of February 1, 1998 through and including March 30, 1998: Section 3: The General Manager of the Districts, or his designee, is authorized to execute any and all contracts or other documents and to transfer all required funds to 2092-800 S7.i24_1 -2- the Orange County Employees Retirement System, in order to implement the authorized actions provided for herein. Section 4: The total cost savings resulting from the retirement of employees in positions which are subsequently filled at a lower level or when the position is held vacant for a period of time, shall exceed the total actuarial cost of the additional service credit granted to those employees who retire together with the related paid leave payoff costs. Section 5: Districts shall pay to the Orange County Employees Retirement System the actuarially determined cost of this early retirement incentive program over a period not to exceed five (5) years and on such other terms and conditions as shall be set forth in a mutually agreed upon written contract between the Districts and the Board of Retirement of the Orange County Employees Retirement System. Section 6: This Ordinance is enacted as an urgency measure to take effect immediately in order to preserve and enhance the public welfare in that the Districts have not fully recovered from all losses suffered in the bankruptcy of the County of Orange in 1995 and the savings of money through reduced employee compensation will partially offset losses suffered and incurred directly by the Districts and whose full recovery is otherwise unknown at this time. Section 7: This Ordinance shall take effect immediately upon adoption. Section 8: The Secretary of the Board shall certify to the adoption of thts Ordinance and shall cause a summary to be published in a newspaper of general circulation as required by law. 2092-800 57424_1 -3- PASSED AND ADOPTED by the Board of Directors of County Sanitation District No. 1 at a regular meeting held January 28, 1998. ATTEST: Penny Kyle Secretary of the Board of Directors County Sanitation District No. 1 of Orange County, California 2092-800 57424_1 Patricia McGuigan Chair, Board of Directors, County Sanitation District No. 1 of Orange County, California -4- PROFESSIONAL Senior Accountant Accountant Programmer Analyst Programmer Sr. Buyer Buyer Principal Administrative Assistant Sr. Administrative Analyst Engineer Associate Engineer Ill Associate Engineer 11 Associate Engineer I Principal Engineer Associate Principal Env. Specialist Project Specialist Principal Lab & Res. Analyst Scientist Human Resources Analyst Safety & Erner. Resp. Specialist Regulatory Specialist Contract Administrator Safety Representative Senior Financial Analyst Financial Analyst Senior Maintenance Planner Planner Computer Hardware Specialist Telecommunications Specialist SUPERVISORY Principal Accountant Technology Supervisor Supervising Buyer Warehouse Supervisor Engineering Supervisor Senior Engineer Supv. Const. Inspector 2092-800 57424_1 ATTACHMENT u1" EXECUTIVE MANAGEMENT GROUP General Manager Assistant General Manager -Administration Assistant General Manager -Operations Department Heads: A. Director of Communications 8. Director of Engineering C. Director of Finance D. Director of General Services Administration E. Director of Human Resources F. Director of Information Technology G. Director of Operations and Maintenance H. Director of Technical Services MANAGEMENT Financial Manager Controller Accounting Manager Purchasing Manager Engineering Manager Construction Manager Lab Manager Source Control Manager Chief Operator Maintenance Manager Human Resources Manager Safety & Erner. Resp. Manager Senior Regulatory Specialist Environmental Complrance and Monitorrng Manager Training Manager Operations Manager Information Technology Manager Plant Automation Manager 2092-800 57424_1 Compliance Supervisor Lab Supervisor Chief Scientist Senior Scientist Source Control Superv. Supv. Source Ctrl. lnsp. Sr. Operations Supv. Operations Supervisor Maintenance Supervisor Foreman Environmental Management Supvr. Principal Financial Analyst CONFIDENTIAL Human Resources Assistant Executive Assistant I Executive Assistant 11 Secretary To The Board of Directors 2092-800 S7424_1 1/15/98 Early Retirement Analysis Onetime Date Working Monthly Annual Position OCERS Net Annual Savings Total Betired Yrs to 65 Salary Salary Changes Expense 94-95 95-96 96-97 97-98 98-99 Savings Pamson, G Scientist 5/1/95 3 5,281 63,372 Deleted 13,872 10,562 49,500 63,372 63,372 63,372 250,178 Gutierrez,T Fae Mgr 3/31/95 1 5,735 68,820 Deleted 51,402 17,205 17,418 68,820 68,820 68,820 241,083 Gutierrez, A Builder 6/30/95 2 3,400 40,800 Deleted 35,497 5,303 40,800 40,800 40,800 127,703 Marsella, D Mech Field Super 3/31/95 13 5,002 60,024 Deleted 31,227 15,006 28,797 60,024 60,024 60,024 223,875 McDaniel, B Foreman 3/31/95 7 4,132 49,584 Deleted 31,768 12,396 17,816 49,584 49,584 49,584 178,964 Talsne, J Mech Field Super 4/28/95 7 5,017 60,204 Deleted 41,030 10,034 19,174 60,204 60,204 60,204 209,820 Subtotal 94-95 Program 28,567 342,804 204,796 65,203 138,008 342,804 342,804 342,804 1,231,623 Shephard, B Senior Storeskeeper 3/28/96 10 3,648 43,776 Refilled 22,656 ; Wynn, M HR Asst 3/28/96 7 3,697 44,364 Deleted 22,412 11,091 21,952 44,364 44,364 121,771 Randall, R Oper Super 1/15/96 4 5,105 61,260 Deleted 45,807 28,078 15,453 61,260 61,260 166,051 Canavan, D Oper Super 1/15/96 10 5,105 61,260 Deleted 38,787 28,078 22,473 61,260 61,260 173,071 Ramey, K Mtce Mgr 3/28/96 13 6,132 73,584 Deleted 39,575 18,396 34,009 73,584 73,584 199,573 Subtotal 95-96 Program 23,687 284,244 169,237 85,642 93,887 240,468 240,468 660,465 Serrantino,S Sr. Constr lnsp. 8/18/96 12 5,399 64,788 Deleted 37,685 56,690 64,788 64,788 186,266 Anderson, L Sr. Plant Operator 3/27/97 6 4,231 50,777 Deleted 30,288 12,693 50,777 50,777 114,247 Marsalek, G Foreman 2/2/97 11 4,654 55,850 Refilled internally 33,314 23,270 55,850 55,850 134,970 McRaney, C Sr. Constr lnsp. 3/31/97 3 4,735 56,822 Deleted 33,894 14,205 56,822 56,822 127,849 Piechocki, H. Oper Super 2/2/97 6 5,337 64,047 Refilled internally 38,204 26,685 64,047 64,047 154,779 Pigman, R. Maintenance Mgr 2/27/97 15 6,317 75,799 Deleted 45,214 25,268 75,799 75,799 176,866 Rood, T. Sr. Plant Operator 3/27/97 6 4,489 53,865 Deleted 32,130 13,467 53,865 53,865 121,197 Rood, L. Sr. Mtce Planner 3/27/97 5 5,550 66,595 Deleted 39,724 16,650 66,595 66,595 149,840 Starrett, B. Constr Inspector 2/6/97 @ 70 4,461 53,527 Deleted 31,929 13,383 53,527 53,527 120,437 Thomas, G. Lead Mechanic 1/16/97 2 4,108 49,297 Deleted 29,406 22,594 49,297 49,297 12• \ Thorall, W. Sr. Clerk 3/31/97 Disability 2,788 33,453 Refilled 19,955 I Yarosh, K Sr. Buyer 3/13/97 9 4,154 49,853 Refilled 29,737 Dawes, T Engineering Mgr 3/28/97 11 7,581 90,969 Refilled internally 54,263 22,743 90,969 90,969 204,681 Hamblin, W Sr. Mtce Planner 3/27/97 11 5,456 65,466 Deleted 39,050 16,368 65,466 65,466 147,300 Niemeyer, D. Instr Tech II 3/28/97 10 4.252 51 ,018 Deleted 30,432 12,756 51,018 51,018 114,792 Subtotal 96-97 Program 66,263 795,146 473,342 263,389 745,293 745,293 1,753,975 Total 1,422,194 847,375 65,203 223,650 700,080 1,328,565 1,328,565 3,646,063 Salary Benefit Savings 16,953 58,149 140,016 265,713 265,713 746,544 Total Salary & Benefit Savings 82,156 281,?99 840,096 1,594,278_1,594,278 4,392,607 EarlyRetirement98 9:51 AM l January 7, 1998 MEMORANDUM TO: All Employees FROM: Michael L. Peterman -,1'1f Director of Human Resources SUBJECT: EARLY RETIREMENT We recently received a memorandum from OCERS stating that in the recent case of Ventura County Deputy Sheriffs Association vs. Board of Retirement of the Ventura County Employees' Retirement Association, the California Supreme Court ruled that employer contributions to a deferred compensation plan are not included within the definition of "compensable earnings." Currently, the Districts treats employer contributions as "compensable earnings." What does that mean to you? It could mean plenty. If you are participating in matching contributions to deferred compensation, the Districts' portion has been added to your base salary to calculate your OCERS retirement benefit. With the new Ventura ruling, your earnings that will be used to calculate your retirement benefit would be reduced 1 to 6 percent. Because the ruling is controversial, the OCERS Board has decided to allow employer contributions to continue as part of compensable earnings, but only up until February 10, 1998 when their Board meets, presumably to adopt this policy. Since this could have a significant impact on employees that are preparing for retirement, management plans to take the early retirement incentive to our Joint Boards this month on January 28. That would give interested employees approximately a two week window between January 28 and February 10 to take advantage of the higher compensable earnings calculation by retiring from the Districts. If you are considering retirement in the near future, please contact me at x7140 to determine how this affects your retirement benefit. It may be to your benefit to take advantage of the early retirement program. If the Districts does not contribute to deferred compensation on your behalf, the Ventura ruling regarding deferred compensation does not affect you. Pending the Boards approval of the additional two years of service credit for early retirement, all eligible employees with at least 50 years of age and 10 years of service, will be offered the incentive. H:\wp.dta\hr\2520\petennan\Benefits\EarlyRetirement.doc - fAHR COMMITil ) I Meeting Date To Jt. Bds. 01/21/98 01/28/98 AGENDA. REPORT Ite?.mber Item Number County Sanitation Districts of Orange County, california FROM: Gary G. Streed, Director of Finance / Prepared by: Michael D. White, Controller~ SUBJECT: Assignment of the implementation portion of the J. D. Edwards Financial Information System (FIS) Contract to Enterprise Technologies GENERAL MANAGER'S RECOMMENDATION Approve the assignment of the implementation portion of the J. D. Edwards (FIS) Contract to Enterprise Technologies, a J. D. Edwards business partner. SUMMARY Staff recommends that the Committee approve the assignment of the implementation portion of the financial information system contract for the remaining software applications, consisting of Fixed Assets, Contract Management, and Inventory Management-Phase 11-O&M, and for the conversion to the J. D. Edwards OneWorld operating platform to Enterprise Technologies. J. D. Edwards can no longer provide a local client implementation project manager and implementation team. PROJECT/CONTRACT COST SUMMARY Total Board approval for the purchase of the hardware, software and implementation of the financial information system through IBM and J. D. Edwards was $1,485,000. No additional funds are being requested with this action. BUDGET IMPACT ~ · This item has been budgeted (CORF, E, 3, m) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. D Not applicable (information item) \lradon\data1wp.dtallin\210\crane\FAHRIFAHR98\JANIFAHR98-06 .. doc Revised: 1013197 Page 1 ADDITIONAL INFORI\. .''ION At the July 24, 1996 meeting, the Joint Board of Directors authorized the General Manager to execute a contract for a new financial information system with J.D. Edwards and Company and approved the purchase of the hardware from the California Multiple Awards Schedule (CMAS) for a combined amount not to exceed $1,485,000. Contract negotiations were completed with J.D. Edwards resulting in a signed contract totaling $1,239,901 for software licenses, system installation, training, and data conversion. The IBM AS/400 hardware was purchased from CMAS for a total of $169,652. The total system cost of $1,409,553 is $75,447 below the Board authorized amount. Implementation of the various applications were completed or will be completed as follows: Phasfri. Applications Phase I Payroll/H.R. Benefits Budgeting Phase II General Ledger Accounts Payable Cash Receipts/Accounts Receivable Fixed Assets Phase Ill Purchasing Inventory Management-Phase I-Admi Inventory Management-Phase II- O&M Job Cost Contract Management Phase IV One Wor1d Conversion/Migration \lradon\data1v,p.dtalfin\2117cn1MIFAHRIFAHR98\IANIFAHR96-06 .. doc Revised: 1013197 Projected Completion Date Actual Completion As of October 1996 Cate/Revised Estimate January 1, 1997 January 3, 1997 February 1, 1997 February 1, 1997 July 1, 1997 July 1, 1997 " " " " .. February 1, 1998 September 30, 1997 November 1, 1997 " M Not Original Identified March 1, 1998 " July 1, 1997 " April 1, 1998 June 30, 1998 June 30, 1999 Page2 As shown by the table bve, the remaining financial inform~n system projects include Fixed Assets, Contract Management, and Inventory Management-Phase II implementation, and migration to the J. D. Edwards OneWorld operating platform. To date, the project is within budget with approximately 50 percent of the total $1,239,901 budget allocated to J. D. Edwards spent. Since the financial information system agreement was entered into with J. D. Edwards in October of 1996, J. D. Edwards company has gone public. As a result, the company's strategic plan has refocused on software development and sales and has moved away from system implementation. The change in the company's strategy first impacted the Districts in September of 1997 when J. D. Edwards reassigned the Costa Mesa based implementation manager to sales and replaced him with an implementation manager based in Denver. In January of this year, J. D. Edwards decided again to replace the implementation manager with one from their Atlanta office. The impact of these changes has been a decline in the overall project management services, and J. D. Edwards has encouraged us to replace them with one of their business partners. The Director of Finance, Controller and Purchasing Contracts Manager interviewed three of J. D. Edwards business partners as a replacement for consulting services on the implementation of the remaining projects of the financial information system. These three business partners were Global Business Solutions, Decision Technologies, and Enterprise Technologies. Global Business Solutions does not have an available implementation manager to assign to the Districts' project at this time. Decision Technologies is based in Fremont, California, and all consultants assigned to this project would have to be reimbursed for travel, meals and lodging, costs that were not originally included in our contract with J. D. Edwards and would probably cause the project to go over budget. After interviewing Enterprise Technologies, the Finance Department management concluded that they would be the best firm to complete the financial information system implementation project, and recommend that the committee approve the assignment of the J. D. Edwards contract to them for the following reasons: • The Implementation Manager had already been working on this project since last September as a subcontractor through J. D. Edwards, and was responsible for the implementation of Purchasing and Inventory modules. • Enterprise Technologies is an Orange County firm that can provide all of their consultants out of the local area thereby eliminating any per diem costs. • Enterprise Technologies has agreed to provide their consultants at lower hourly rates then were charged by J. D. Edwards which will either provide more consulting hours under the current agreement or reduce the total project cost. • Enterprise Technologies has been approved by J. D. Edwards to complete the implementation of this project. \lladon\data1 ~.dtallin\210'cnne\FAHRIFAHR98UANIFAHR98-06 .. doc R9'1ised: 1013197 Page3 ALTERNATIVES Continue using J. D. Edwards consultants from out of state to implement the remainder of the Financial Information System Project which would probably lead to implementation delays and cost overruns. llradonldata1w,,p.dtalfin\2101crane\FAHRIFAHR98\JANIFAHR98-08 .. doc RtMMCI: 10131117 Page4 "· FAHR COMMITTEE ) J Meeting Date 1/21/98 AGENDA REPORT Itemt~r County sanitation Oisbicts of Orange County, California FROM: David A. Ludwin, Director of Engineering /\u. Originator: Jim Herberg, Engineering Supervisor ff\-\ To lt. Bds. 1/28/98 Item Number SUBJECT: STRATEGIC PLAN TREATMENT, DISPOSAL AND REUSE PLAN (PHASE 2), JOB NO. J-40-3: ADDENDUM NO. 2 TO PROFESSIONAL SERVICES AGREEMENT WITH CAMP DRESSER AND MCKEE, INC. GENERAL MANAGER'S RECOMMENDATION 1. Approve Addendum No. 2 to the Professional Services Agreement with Camp Dresser & McKee, Inc. for preparation of Phase 2 of the Strategic Plan, Job No. J-40-3 to provide additional planning and design services at an estimated $300,000 to $400,000 increase in the total consulting fees for the Strategic Plan. Although the additional fee has not been finalized at thiswriting, it will be provided to the Committee prior to January 21. 2. Extend the contract duration for an additional six months to April 1999. SUMMARY Recent developments, including revisions to the draft ocean discharge permit, have required that the Districts reconsider many of the baseline assumptions of the Strategic Plan. To date, 90 percent of the peak flow management and rate structure work (Phase 1 ), and about 50 percent of the treatment, disposal and reuse analysis (Phase 2) have been completed. Using new baseline assumptions will require that some of the work already completed by the Districts' Strategic Plan consultant, Camp Dresser & McKee (COM) be revised, and that the overall Strategic Plan schedule be extended by six months. An addendum to the existing Professional Services Agreement (PSA) with COM will be required for this additional work. In addition to revising work already completed, the proposed addendum also includes (1) additional effort required to continue public participation beyond the Planning Advisory Committee (PAC) and Rate Advisory Committee (RAC) processes which are nearing completion, and (2) additional support in finalizing outstanding issues related to rate structure changes planned for July 1, 1998. PROJECT/CONTRACT COST SUMMARY Although a detailed breakdown of costs for the additional effort is not available at this writing, it will be provided to the Committee prior to January 21. The total additional fee proposed for this work is estimated to be $300,000 to $400,000, approximately 15% of CDM's existing budget for Phases 1 and 2 of the Strategic Plan. Staff believes that the above changes to the Strategic Plan budget and schedule are necessary for the project to move forward with l 3line assumptions that reflect the l t information available to date. BUDGET IMPACT D This item has been budgeted 181 This item has been budgeted, but there are insufficient funds. . (Line item: CORF Budget item D1 d) D This item has not been budgeted. D Not applicable (information item) The original total project budget for Phase 2 of the Strategic Plan was $750,000 in 1996. The current project budget is $933,000 with $500,000 budgeted for this fiscal year. Estimated expenditures to date are $410,000. The estimated remaining budget amount is $523,000. ADDITIONAL INFORMATION The proposed Addendum No. 2 consists of additional work listed below. These issues have been discussed with the Ad Hoc Committee, and they have concurred with staff's analysis and the need to make the revisions to the work effort. Planning horizon of 2010 versus 2020. The original planning assumptions for treatment and disposal alternatives were to be based upon projected conditions in 2020 with a detailed annual capital improvement program through 2020. This approach has been revised to provide a detailed annual capital improvement plan through 201 0 with five year block increments of improvements from 201 0 through 2020. This change is being made because it will be difficult to make detailed decisions based entirely on projections for 2020. Effluent limitations, concentration and mass emissior:i limits. On December 17, 1997 the EPA and Regional Water Quality Control Board issued draft discharge requirements for the Districts' ocean discharge permit. The draft permit was anticipated much sooner, and as a result, work that has been done will need to be revisited. The new draft permit contains several important revisions to the treatment and discharge requirements under which the Districts currently operate. These include: • Originally it was assumed that concentration limits would govern our operations in all circumstances, allowing discharge emissions to rise with future flows, consequently requiring additional secondary treatment. Under the draft permit conditions, however, our operations will be governed by an annual mass emissions limit. ,• The EPA is interested in promoting the Groundwater Replenishment System (GWR System) and has written "reopener" provisions into the permit to consider revising permit limits once the GWR System begins operation. • The emergency discharge conditions have been revised, allowing the Districts more flexibility. The impact of these changes is that the Districts will have more flexibility in meeting permit requirements. In order to consider this flexibility in making Strategic Plan recommendations, CDt~II need to revisit and revise the tr~hent scenario analyses, cost estimates, disposal options, and biosolids management sections of the Strategic Plan. Continued public participation through completion of Strategic Plan beyond RAC and PAC process. A number of issues will require continued public involvement following the RAC and PAC process, through completion of the Strategic Plan, including (1) the level of treatment, (2) the program EIR, (3) the GWR System, and (4) the rate impacts from the capital improvement plan. Staff recommends continuing the public participation process during completion of the Strategic Plan through a scaled back version of the PAC and RAC process. The newly formed public group would be referred to as PAC II, and would consist of members from the RAC and PAC. Three additional public participation workshops are proposed for PAC 11. ALTERNATIVES None. If the additional work associated with revisiting the underlying assumptions as described above is not performed, the Districts' strategic planning will not be optimized because the underlying assumptions will not reflect actual conditions. CEQA FINDINGS The Strategic Plan includes a programmatic Environmental Impact Report which is being prepared under a separate contract, J-40-4. ATTACHMENTS jdh FAHR COMMITTEE Meeting Date 01/21/98 AGENDA REPORT Item Number 7. County Sanitation Districts of Orange County, california FROM: David Ludwin, Director of Engineering . 0 ii/ Originator: Steve Kozak, Financial Manager.;v-- ToJt. Bds. 01/28/98 Item Number SUBJECT: Award of Contract, Job No. P2-70, Replacement of Construction Management Trailers at Plant No. 2 (All Districts) GENERAL MANAGER'S RECOMMENDATION Authorize award of a contract for Job No. P2-70, Replacement of Construction Management Trailers at Plant No. 2, to Space Leasing Company, Inc., in an amount not to exceed $183,989. SUMMARY On January 13, 1997, the Plant No. 2 Construction Management Trailer complex was destroyed by a structural fire. This item requests authorization for award of contract to Space Leasing Company, Inc., the lowest responsible bidder, for replacement of the trailers destroyed by the fire. PROJECT/CONTRACT COST SUMMARY The proposed contract with Space Leasing Company, Inc., is in an amount not to exceed $183,989. Total project costs exceeding the self-insurance retention are eligible for reimbursement under the Districts' All-Risk Property Insurance Program. BUDGET IMPACT t8J This item has been budgeted: CORF, Misc. Improvement Projects at Plant 2. D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. D Not applicable (information item) H:lwp.dtaVin\2101cnane\FAHRIFAHR98\JANIFAHR98-07.doc Rellised: 10/17197 Page 1 ADDITIONAL INFORMATION On January 13, 1997, the Construction Management trailer complex, located in the east parking lot at Plant No. 2, was destroyed by a structural fire. After reviewing alternatives for replacing the lost Construction Management office space, it was decided to procure and install replacement trailers at the same site. Engineering /Small Projects staff completed design work, prepared plans and specifications, bid and contract documents. In November 1997, six (6) interested bidders received bid documents. On December 2, 1997, three (3) responsible bids were received. The bids ranged from a low of $183,989, submitted by Space Leasing Company, Inc., of Fontana, to a high of $212,477. The engineer's estimate for the project was $230,000. Contract documents have been completed with Space Leasing Company, and approved by the Districts' Purchasing Contracts Manager. The Districts' All-Risk Property Insurance broker and claims manager have been kept informed of progress on this project. Staff hereby requests authorization for award of contract to Space Leasing Company, Inc. The estimated project completion date is March 5, 1998. ALTERNATIVES None. CEQA FINDINGS None. ATTACHMENTS 1. Bid Summary SK:lc H:lwp.dtaVin\210lcrane\FAHRIFAHR98\lANIFAHR98-07.doc: R...-d: 1Bl17197 Page2 Proiect Status Job No. P2-70 PROJECT TITLE: Replacement of Construction Management Trailers at Plant No. 2 PROJECT DESCRIPTION: Replacement of Districts Construction Trailers Destroyed by Fire in Jan. 1997 ENGINEER'S ESTIMATE: $230,000. BUDGET AMOUNT: Reimbursement by Insurance Co. Bid Date: December 3, 1997 ================== ======================== CONTRACTOR TOTAL BID =======================================-=== 1. SPACE LEASING 2. RESUN LEASING 3. BRANDALL MODULAR Estimated Notice to Proceed Date : 1 /5/98 Estimated Completion Date : 3/5/98 * $183,989.00 $212,477.00 $205,000.00 * Date is dependent on expediting Permit approval by City of Huntington Beach. H:\wp.dt11\eng\ENG\P2-7O\PROJST AT.DOC January 14, 1998 Consideration of Performance-Based Budget 1998-99 Budget Assumptions & Fiscal Policies Action CORF Budget Recommendation Action Rate Advisory Committee Recommendations Status Information Annual Renewal of Boiler & Machinery Insurance Action Travel Policy Action Second-Quarter Financial & Performance Report Information ··· j)~ii~]I]iiJil..-F-in_a_n_c_ia_1_s_t_r_a_te_g_y_f_o_r_o_c_RJ_G_R_s_P_ro_je_c_t ________________ A_c_t_io_n_ i~ijl!lPii~:::;mj:j]l1mm Strategic Plan/Financial Plan and Revised Rate Structure Part 1 Action f:~i li~t:Jl!Ji[/Jll! Reserves Study and Recommendations Action ·• \t,nlir!: DART-Update on Cross-Training Program for Three Pilot I:,, ... Mal~" . . . .. Projects l~!~;~?:i,;iiii1--w_o_rk_e_r'_s_c_o_m_p_R_e_p_ort_-_2_n_d_a_u_a_rt_e_r _______________ 1n_fo_r_m_a_t_io_n_ Information !',,,,,,,;,:> .' ......... . ·:if::. :;:7::.:·~ Status Report on Implementation of Broadbanding Information lf::ii: ~~f::,:ii::~i::::~ Report on Audit Findings for 23 Cities Sewer Connection Fees Information 1nr -·· .:::: ::}LltJ~ ·~E:;~~•'''~ .. -:::::··.~:~:rcl-· -:-:-':-:-:-gc_i:-io_:_1a_F"-~-:.-in_:-:-:-i:-ln-:-1:-:-a-:-i:-:-;-e-· .-v:_s_e_d_R_a_t_e_s_t_ru_c_t_u_re_-_P_a_rt_2 ___ ln_f_o_rm_A_:-:::-:- jf ,,i~Jiilt--:-:-~.-8 ~-:-:-i:-n-"o_d:-:-~-~-:-o d-ri:-:-••_n_d_P_u-rc_h_a_s-in_g_R-es_o_l_ut-io-n-------+---l-n_fo_r_:-:-t:-:-:---t -~l:::mIT!i:u-: . -~ ~:;;;;;_ CSDOC e P.O. Box 8127 e Fountain Valley, CA 92728-8127 • (714) 962-2411