HomeMy WebLinkAbout2000-03-08Draft
MINUTES OF FINANCE. ADMINISTRATION AND
HUMAN RESOURCES COMMITTEE MEETING
Orange County Sanitation District
Wednesday, March 8, 2000, 5:00 p.m.
A meeting of the Finance, Administration and Human Resources Committee of the Orange
County Sanitation District was held on March 8, 2000 at 5:00 p.m., in the District's Administrative
Office.
(1) FILED The roll was called and a quorum declared present, as follows: 114 Ti-\E or.nr,F. o;. n~r.: SECRETARY
FAHR COMMITTEE MEMBERS:
Directors Present:
Thomas R. Saltarelli, Chair
Mark Leyes, Vice Chair
Shawn Boyd
Shirley McCracken
James W . Silva
Jan Debay, Board Chair
Peer Swan, Board Vice Chair
OTHERS PRESENT:
Tom Nixon, General Counsel
Don Hughes
Jeff Bower
Rita Seymor
Joe Fournier
(2) APPOINTMENT OF CHAIR PRO TEM
No appointment was necessary
(3) PUBLIC COMMENTS
There were no public comments.
Directors Absent:
John M. Gullixson
Mark A. Murphy
STAFF PRESENT:
ORANGE ~.;1l1.·,1 y l.<.,>ii-f1\'tiON DISTRICT
MAR 2 2 2000
()(.
Don Mcintyre, General Manager
Blake Anderson, Assistant General Manager
Lisa Tomko, Acting Director of Human
Resources
Gary Streed, Director of Finance
Steve Kozak, Financial Manager
Mike White, Controller
Greg Mathews, Assistant to the General
Manager
Penny Kyle, Committee Secretary
Bob Geggie
Ryal Wheeler
(4) RECEIVE, FILE AND APPROVE MINUTES OF PREVIOUS MEETING
It was moved, seconded and duly carried to approve the minutes of the February 9, 2000
Finance, Administration and Human Resources Committee meeting.
(5) REPORT OF THE COMMITTEE CHAIR
The Committee Chair had no report.
Minutes of the Finance, Administration and Human Resources Committee Meeting
Page2
March 8, 2000
(6) REPORT OF THE GENERAL MANAGER
The General Manager reported that the budget_ process was underway. There are some
outstanding issues with budget assumptions regarding staffing. Blake Anderson will be talking to
the Steering Committee about these at its next meeting. Mr. Anderson's proposal will be to
develop comprehensive staffing plans in conjunction with an operations plan that will go to the
Board later this year.
(7) REPORT OF ASSISTANT GENERAL MANAGER
Blake Anderson discussed an article that appeared in The Register last week regarding the
groundwater replenishment system. He reported that reporter Gary Robbins has spent much
time with staff trying to understand the complex issues connected with the GWR system. He
further reported no telephone calls were received as a result of the article. Mr. Robbins will be
doing a series of articles on the various water issues in the near future.
The Assistant General Manager also discussed the upcoming GWR Board Workshop to be held
on March 251h from 8:00 a.m. to 11:00 a.m. Alternate Directors from our Board, Directors of the
Orange County Water District , and the Rate Advisory Committee and Planning Advisory
Committee members were being invited to attend this workshop.
(8) REPORT OF DIRECTOR OF FINANCE
Gary Streed introduced Jeff Bower of PaineWebber, and Rita Seymor and Joe Fournier of
PIMCO, to the Directors.
Mr. Streed also reported that the bankruptcy proceeds were distributed a several weeks ago.
Four checks were received from three different financial institutions, only one of which is the
same bank the District utilizes. However, the most significant amount of the money received was
drawn on a bank that could only be deposited in Boston. A special account was opened on
Thursday and the money was sent overnight and had it invested by Friday. Because of that
strategy, the District was able to earn an extra $30,900 of interest by moving quickly.
(9) REPORT OF DIRECTOR OF HUMAN RESOURCES
The Acting Director of Human Resources had no report.
(10) REPORT OF DIRECTOR OF COMMUNICATIONS
The Director of Communications was not present.
(11) REPORT OF GENERAL COUNSEL
Tom Nixon reported on the South Coast Metro matter and advised that counsel was waiting to receive
a legal description of the easement which is being prepared by Bush and Associates. It is anticipated
that the matter will be resolved shortly after it is received.
Mr. Nixon then advised that a hearing date has been scheduled for June 8 pertaining to the CEQA
aspect of the litigation regarding the Kem County ordinance on biosolids. A cross-complaint had just
been received which challenges several of the District's CEQA determinations with regard to biosolids
Minutes of the Finance, Administration and Human Resources Committee Meeting
Page 3
March 8, 2000
matters such as The Tule Ranch and Yakima Company. Counsel is presently evaluating the cross-
complaint, and will apprise the Board in closed session of that evaluation when it is complete.
(12) CONSENT CALENDAR ITEMS (Items a-d)
a, FAHR00-18: Receive and file Treasurer's Report for the month of
February 2000. The Treasurer's Report was handed out at the FAHR Committee
meeting in accordance with the Board-approved Investment Policy, and in
conformance with the Government Code requirement to have monthly reports
reviewed within 30 days of month end.
b. FAHR00-19: Receive and file Certificate of Participation (COP) Monthly Report.
c. FAHR00-20: Receive and file Employment Status Report as of February 10, 2000,
d. FAHR00-21 : Item deleted by staff
Motion:
END OF CONSENT CALENDAR
Moved, seconded and duly carried to approve the recommended actions
for items specified as 12(a) through (c) under Consent Calendar.
(13) ACTION ITEMS (Items a-c)
a. FAHR00-22: Receive and file the Quarterly Investment Management Program
Report for the period October 1, 1999 through December 31 , 1999.
A verbal report was given by Rita Seymor and Joe Fournier of PIMCO regarding
the District's current investment policy, strategy and economic outlook.
Motion: Moved, seconded and duly carried to approve staffs recommendation.
b, FAHR00-23: Authorize staff to issue a purchase order contract to appoint
Moreland & Associates as the District's independent auditors for fiscal year 1999-
00 for an amount not to exceed $42,600, with an option of auditing fiscal years
2000-01 and 2001-02 upon staff approval, and an option of auditing fiscal years
2002-03 and 2003-04 upon Board approval.
Mike White gave a brief overview of the evaluation of proposals and selection of
recommended independent auditors, Moreland & Associates.
Motion: Moved, seconded and duly carried to approve staffs recommendation.
c. FAHR00-24: Consolidation of Revenue Area Financial Plans and Rates, except
Revenue Areas 7 and 14.
Gary Streed gave a brief history of the District's rate structure prior to
consolidation and explained why staff was now proposing consolidation of the
Minutes of the Finance, Administration and Human Resources Committee Meeting
Page4
March 8, 2000
different revenue areas. Directors commended Gary on an excellent presentation.
and requested the same presentation be given to the entire Board as infonnation
only.
Motion: Moved, seconded and duly carried to provide the Board of Directors with
the same presentation as infonnation only in order to detennine if additional
Information is needed in order to approve a recommendation.
(14) INFORMATION PRESENTATIONS
a. FAHR00-25: Update on COP Restructuring and existing COP Structure
Steve Kozak, Financial Manager, gave a brief report on the District's existing
certificates of participation and the plan to update the structure to reflect consolidation.
(15) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY
There were none.
(18) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR
ACTION AND STAFF REPORT
There were none
(17) CONSIDERATION OF UPCOMING MEETINGS
The next FAHR Committee meeting is scheduled for April 12, 2000 at 5 p.m.
(18) CLOSED SESSION
There was no closed session.
(19) ADJOURNMENT
The Chair declared the meeting adjourned at approximately 7:20 p.m.
H:\wp.dla\agenda\FAHRIFAHR2000\2000 Mlnutes'lJ30800 FAHR MIN.doc
STATE 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
Committee meeting to be held on
1~ £ , 200;2_, was duly posted
for public inspection in the main lobby of the District's offices on ~ :'.$
20012.
IN WITNESS WHEREOF, I have hereunto set my hand this ~ day of
_'-1'-"-/;:....._U<.eA _____ , ~· 200 ~.
Penny M. Kyl Secreta
Board of Directors
Orange County Sanitation District
\\RADON\DAT A 1 \WP .OT A \ADMIN\BS\FORMS\AGENDA CERTIFICA TION·FAHR COMMITIEE.DOC
March 1, 2000
DISTRIBUTION
FAHR COMMITTEE MEETING PACKAGE
Full Aaenda Package
Committee
& Mailing List
Donald F. Mcintyre
Blake P. Anderson•
Dan Dillon
Marc Dubois
Jeff Esber
Steve Kozak
Penny Kyle
David Ludwin
Greg Mathews
Patrick Miles•
Bob Ooten
Lisa Tomko•
Gary Streed
Michelle Tuchman•
Robert Ghirelli
Mike White•
Cagle, Brad
Bob Geggie
Patricia Jonk
Lenora Crane
Extras
Notices and Agenda Onlv
40
13
1
1
1
1
1
1
2
1
1
1
1
1
1
1
1
1
1
1
1
1
5 (for meeting hand-out, if necessary)
7
Posting 1
Jean Tappan 1
Gall Caln 1
Rose Marsella 1
Frankie Woodside 1
Patricia Magnante 1
Janet Gray 1
Security 1
Ron Zenk, Dist. 14 Treasurer=S Report Only
c
\\RADON\DATA1\WP.DTA\ADMINIBS\FAHR\DISTRIBUTIONLISTFAHR.DOC
phone:
(714) 962-2411
mailing address:
P.O. Box 8127
Fountain Valley, CA
92728-8127
street address:
10844 Ellis Avenue
Fountain Valley, CA
92708-7018
Member
Agencies
Cities
Anaheim
Brea
Buena Park
Cypress
Fountain Valley
Fullerton
Garden Grove
Huntington Beach
Irvine
La Habra
La Palma
Los Alamitos
Newport Beach
Orange
Placentia
Santa Ana
Seal Besch
Stanton
Tustin
Villa Park
Yorba Unds
County of Orange
S anitary Districts
Costa Mesa
Midway City
Water Dist ricts
Irvine Ranch
ORANGE COUNTY S ANITATION DISTRICT
March 1, 2000
NOTICE OF MEETING
FINANCE, ADMINISTRATION AND HUMAN RESOURCES
COMMITIEE
ORANGE COUNTY SANITATION DISTRICT
WEDNESDAY, MARCH 8, 2000 -5:00 P .M.
DISTRICT'S ADMINISTRATIVE OFFICES
10844 ELLIS AVENUE
FOUNTAIN VALLEY, CALIFORNIA 92708
A regular meeting of the Finance, Administration and Human
Resources Committee of the Board of Directors of the Orange
County Sanitation District, will be held at the above location, date
and time.
"To Protect the Public Health and the Environment through Excellence 1n Wastewater Systems"
FINANCE, ADMINISTRATION AND HUMAN RESOURCES
COMMITTEE MEETING DATES
FAHR Committee Meeting Dates
March 8, 2000
April 12, 2000
May 10, 2000
June 14, 2000
July 12, 2000
No Meeting Scheduled
September 13, 2000
October 11 , 2000
November 8, 2000
December 13, 2000
No Meeting Scheduled
February 14, 2001
March 14, 2001
Board Meeting Oates
March 22, 2000
April 26, 2000
May 24, 2000
June 28, 2000
July 19, 2000
August23,2000
September 27, 2000
October 25, 2000
November 15, 2000
December 20, 2000
January 24, 2001
February 28, 2001
March 28, 2001
ROLL CALL
FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE
Meeting Date: March 8, 2000 Time: 5:00 p.m.
Adjourn: -----
COMMITTEE MEMBERS
THOMAS R. SALTARELLI (Chair) ................................................ .
MARK LEYES (Vice Chair) ........................................................... .
SHAWN BOYD .............................................................................. .
JOHN M. GULLIXSON .................................................................. .
SHIRLEY MC CRACKEN ............................................................. ..
MARK A. MURPHY ....................................................................... .
JAMES W. SILVA .......................................................................... .
JAN DEBAY (Board Chair) .......................................................... ..
PEER SWAN (Board Vice Chair) ................................................. ..
OTHERS
TOM WOODRUFF, General Counsel .............................................. .
TOBY WEISSERT, Carollo Engineers ............................................. __
STAFF
DON MCINTYRE, General Manager ............................................... .
BLAKE ANDERSON, Assistant General Manager ........................ ..
DAVID LUDW1N, Director of Engineering ..................................... ..
BOB OOTEN, Director of Operation• & Maintenance ................... ..
LISA TOMKO, Acting Director of Human Reaources .................... .
GARY STREED, Director of Finance .............................................. .
MICHELLE TUCHMAN, Director of Communications ................... ..
PATRICK MILES, Director of Information Technology .................. .
ROBERT GHIRELLI, Director of Technical Services ..................... .
STEVE KOZAK, Financial Manager ............................................... .
MIKE WHITE, Controller ................................................................ ..
GREG MATHEWS, Aaaiatant to the General Manager ................... .
DAWN MCKINLEY, Sr. Human Resources Analyst ....................... .
PENNY KYLE, Committee Secretary .............................................. .
c: Lenora Crane
March 1 f 2000
1§7~~,: --· ·l?f~~i!!~~~m,~--:~~.:~~7:;g~~z~ ~-----'"·• ··"-'>t1'-1•:-~Jt., :3, ~~~ .-:,.,.., -~ ..... ,...,. . --~ . .,, . __ ;_,· ;T~-rn-itk"<:._R; ,n~ ... : ~ ::: :-. ~ i.-.'" ~.. *'" ·, li ,.. :,,. ' -}: -~~ i:Q;--P£:;.-1,k «~',<~~ ~vs;~,:} ?~-· ; ........ ""'-·~ ····-_., __ ,.,,..,..,,._,,,_,., ____ ,._._, __ -------~-~.:m~~r·""-~~
1)1$·~ •t 1'-.,: "' ~ >P"" , ' ~1 ~· ' , ,,.,.~ •W;.1•v.,.' '"> ,,,,, }?: J'i..~ ,~ ... ~;,.,. . _, ;:_;;:~"" :_.~,':-~·:>;.~-~":', • "'"' '.·!. "· ·-~~-"'·,.:L~i-®lji>~~%;:( . • . .J.r•~-'.
April 2000-01 CIP Budget Status Report Information
April 200()..01 Operating Budget Status Report Information
April Select Liquidity Provider and Trustee for COPs Action
April Preliminary Official Statement and Documents for COP Action Restructuring
April Update of Human Resources Policies & Procedures Action
April Meeting, Training and Travel Policy Revisions Action
May 2000-01 User Fees, Connection Fees, Annexation Fees Action
May 200()..01 Source Control Permit User Fees Action
May Approve Final COP Restructuring Documents Action
May 2000-01 Proposed Budget Review Information
May General Manager Approved Purchase Report Action
June Approve COP Restructuring Sale Action
June 2000-01 Proposed Budget Approval Action
July Update Human Resources Policies & Procedures Action
July Annual Investment Policy Approval Action
AGENDA
REGULAR MEETING OF THE
FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE
ORANGE COUNTY SANITATION DISTRICT
WEDNESDAY, MARCH 8, 2000, AT 5:00 P.M.
ADMINISTRATIVE OFFICE
10844 Ellis Avenue
Fountain Valley, California 92708
In accordance with the requirements of California Government COde Section 54954.2, this agenda has been
posted in the main lobby of the District's 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.
(1) ROLL CALL
(2) APPOINTMENT OF CHAIR PRO TEM. IF NECESSARY
(3) 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).
March 8, 2000
(4) APPROVE MINUTES OF PREVIOUS MEETING
Approve minutes of the February 9, 2000, Finance, Administration and Human Resources
Committee meeting.
(5) REPORT OF COMMITIEE CHAIR
(6) REPORT OF GENERAL MANAGER
(7) REPORT OF ASSISTANT GENERAL MANAGER
(8) REPORT OF DIRECTOR OF FINANCE
(9) REPORT OF DIRECTOR OF HUMAN RESOURCES
(10) REPORT OF DIRECTOR OF COMMUNICATIONS
(11) REPORT OF GENERAL COUNSEL
(12) CONSENT CALENDAR ITEMS {a-d)
Consideration of motion to approve all agenda items appearing on the Consent Calendar not
specifically removed from same, as follows:
'IAll 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
!calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions
!included on the consent calendar. All items removed from the consent calendar shall be considered in the regular
iorder of business.
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 detennine if any items are to be deleted from the consent calendar.
a. FAHR00-18: Receive and file Treasurer's Report for the month of February 2000. The
Treasurer's Report will be distributed at the FAHR Committee meeting in
accordance with the Board-approved lnv~stment Policy, and in
conformance to the Government Code requirement to have monthly
reports reviewed within 30 days of month end.
2
March 8, 2000
b. FAHR00-19: Receive and file Certificate of Participation (COP) Monthly Report.
c. FAHR00-20: Receive and file Employment Status Report as of February 10, 2000.
d. FAHR00-21: Item deleted by staff.
END OF CONSENT CALENDAR
Consideration of items deleted from Consent Calendar, if any.
(13) ACTION ITEMS (a-c)
a. FAHR00-22:
b. FAHR00-23:
c. FAHR00-24:
1) Receive and file Quarterfy Investment Management Program Report
for the period October 1, 1999 through December 31, 1999; and
2) Verbal report by PIMCO regarding investment policy, strategy and
economic outlook.
(Steve Kozak and Rita Seymor -15 minutes)
Authorize staff to issue a purchase order contract to appoint Moreland &
Associates as the District's independent auditors for fiscal year 1999-00
for an amount not to exceed $42,600, with an option of auditing fiscal
years 2000-01and2001-02 upon staff approval, and an option of
auditing fiscal years 2002-03 and 2003-04 upon Board approval.
(Mike White-10 minutes)
Consolidation of Revenue Area Financial Plans and Rates, except
Revenue Areas 7 and 14
(Gary Streed -30 minutes)
(14) INFORMATIONAL PRESENTATIONS
a. FAHR00-25: Update on COP Restructuring and existing COP Structure
(Steve Kozak-15 minutes)
(15) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY
(16) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR
ACTION AND STAFF REPORT
(17) FUTURE MEETING OATES
3
March 8, 2000
The next Finance, Administration and Human Resources Committee Meeting is scheduled for
April12, 2000, at 5 p.m.
(18) 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. At. such time as final actions are taken by the Committee on any of these
sub"ects, the minutes will reftect all re uired disclosures of information.
A. Convene in closed session.
B. Reconvene in regular session.
C. Consideration of action, if any, on matters considered in closed session.
(19) ADJOURNMENT
I Notice To Committee Members:
I For any questions on the agenda or 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:
Committee Secretary:
Thomas Saltarelli
Penny Kyle
(949) 83~9200
{714) 59~7130
4
MINUTES OF FINANCE. ADMINISTRATION AND
HUMAN RESOURCES COMMITTEE MEETING
Orange County Sanitation District
Wednesday, February 9, 2000, 5:00 p.m.
A meeting of the Finance, Administration and Human Resources Committee of the Orange
County Sanitation District was held on February 9, 2000 at 5:00 p.m., in the District's
Administrative Office.
(1) The roll was called and a quorum declared present, as follows:
FAHR COMMITTEE MEMBERS:
Directors Present:
Thomas R. Saltarelli, Chair
Marte Leyes, Vice Chair
Shawn Boyd
John M. Gullixson
Shirtey McCracken
James W. Silva
Jan Debay, Board Chair
Peer Swan, Board Vice Chair
OTHERS PRESENT:
Tom Woodruff, General Counsel
Don Hughes
Dan Cassidy
(2) APPOINTMENT OF CHAIR PRO TEM
Directors Absent:
Mark A. Murphy
STAFF PRESENT:
Don Mcintyre, General Manager
Blake Anderson, Assistant General Manager
Lisa Tomko, Acting Director of Human
Resources
Gary Streed, Director of Finance
Michelle Tuchman, Director of Communications
Steve Kozak, Financial Manager
Mike White, Controller
Greg Mathews, Assistant to the General
Manager
Penny Kyle, Committee Secretary
Because of a delay in the arrival of Director Saltarelli, Chair of the FAHR Committee, and Director
Leyes, Vice Chair of the FAHR Committee, Board Chair Jan Debay was appointed Chair Pro Tem.
(3) PUBLIC COMMENTS
MOVED, SECONDED AND DULY CARRIED: Defer public comments to follow Closed Session
Item No. 18(a}(3).
(4) RECEIVE, FILE AND APPROVE MINUTES OF PREVIOUS MEETING
It was moved, seconded and duly carried to approve the minutes of the January 12, 2000
Finance, Administration and Human Resources Committee meeting.
(5) REPORT OF THE COMMITTEE CHAIR
The Committee Chair had no report.
Minutes of the Finance, Administration and Human Resources Committee Meeting
Page2
February 9, 2000
(6) REPORT OF THE GENERAL MANAGER
The General Manager advised the Directors that a tentative date had been scheduled for March
18th for a workshop to discuss urban runoff issues. Director Swan advised that a dedication of
the Eastside Reservoir would take place on the same date, so staff was directed to reschedule
the workshop.
Mr. Mcintyre also reported that a committee of national experts representing .a variety of
disciplines would be meeting on February 28, 29 and March 1 to discuss the Huntington Beach
closure last summer.
(7) REPORT OF ASSISTANT GENERAL MANAGER
The Assistant General Manager had no report.
(8) REPORT OF DIRECTOR OF FINANCE
The Director of Finance reported that the District will receive $88,000 for its portion of ERAF
dollars.
It was also reported that Steve Kozak, Financial Manager has received certification as one of
California's Certified Municipal Treasurer (CCMn. Currently, there are only 76 CCMTs active in
the state of California.
(9) REPORT OF DIRECTOR OF HUMAN RESOURCES
The Acting Director of Human Resources had no report.
(10) REPORT OF DIRECTOR OF COMMUNICATIONS
Michelle Tuchman advised the Directors they would be receiving an invitation to the three-day
wori<shop of national experts from various disciplines to discuss issues regarding last summer's
closure of Huntington Beach because of high bacteria counts. The wori<shop would be held
February 28 to March 1, 2000.
It was also reported that an advisory committee was being established regarding odor control
issues.
(11) REPORT OF GENERAL COUNSEL
General Counsel had no report.
(12) CONSENT CALENDAR ITEMS (Items a-e)
a. FAHR00-08: Receive and file Treasurer's Report for the month of
January 2000. The Treasurer's Report was handed out at the FAHR Committee
meeting in accordance with the Board-approved Investment Policy, and in
conformance with the Government Code requirement to have monthly reports
reviewed within 30 days of month end.
Minutes of the Finance, Administration and Human Resources Committee Meeting
Page 3
February 9, 2000
b. FAHR00-09: Receive and file Certificate of Participation (COP) Monthly Report.
c. FAHR00-10: Receive and file Employment Status Report as of January 31, 2000.
d. FAHR00-11: Receive and file report of General Manager approved purchases in
amounts exceeding $50,000 in accordance with Board purchasing policies.
e. FAHR00-12: Update regarding review of the Sewer Service Fee Program.
Motion:
END OF CONSENT CALENDAR
Moved, seconded and duly carried to approve the recommended actions
for items specified as 12(a) through (e) under Consent Calendar.
Chair Saltarelli arrived and thanked Director Debay for guiding the meeting in his absence.
Motion: Moved, seconded and duly carried to go out of order and into Closed Session, as
authorized by Government Code Section 54957.6, to discuss and consider the
item that is specified as Item 18{a)(3) on the published Agenda.
(18) CLOSED SESSION (Item a(3))
The Committee convened in closed session at 5:20 p.m.
Confidential Minutes of the Closed Session held by the Finance, Administration and Human
Resources Committee have been prepared in accordance with California Government Code Section
54957 .2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of
Board and Committee Closed Meetings. No reportable action was taken re Agenda Item No. 18(a)(3).
At 5:40 p.m., the Committee reconvened in regular session.
PUBLIC COMMENTS
Ellen Ray, a District employee, spoke to the Directors of her concern with the respective proposals
and issues the District and the IUOE Local 501 are currently negotiating.
Mark Mutz, a District employee, also spoke to the Directors of his concern regarding the respective
proposals and issues being negotiated by the District and the IUOE Local 501 .
(13) ACTION ITEMS (Items a-c)
a. FAHR00-13: Receive and file the Mid-Year Financial and Operational Report for
the period ending December 31, 1999.
Motion: Moved, seconded and duly carried to approve staffs recommendation.
Minutes of the Finance, Administration and Human Resources Committee Meeting
Page4
February 9, 2000
b. FAHR00-14: Adopt a financial plan to consolidate bookkeeping and rate-setting
practices as follows:
1. Combine the assets and liabilities for the separate Revenue Area Nos. 1,
2, 3, 5, 6, 11 and 13 into one consolidated Revenue Area; and,
2. Adopt one financial plan for the consolidated Revenue Areas; and,
3. Adopt one user fee rate for the consolidated Revenue Area Nos. 1, 2, 3, 5,
6, 11 and 13; and,
4. Continue to fund Revenue Area 7 through adopted sewer service user
fees; and,
5. Continue to fund Revenue Area 14 by contract with the Irvine Ranch
Water District.
Mr. Streed gave a brief overview of the proposed consolidation of the rate
structure. A lengthy discussion took place regarding the pros and cons of
consolidating rates.
Motion: Moved, seconded and duly carried to defer this item and request staff to
set up a date to conduct a workshop to discuss consolidating rates.
(14) INFORMATION PRESENTATIONS
a. FAHR00-16: Status Report, Restructuring of the District's Existing Certificates of
Participation
Steve Kozak, Financial Manager, gave a brief report on the District's existing
certificates of participation.
b. FAHR00-17: Long Term Benefits of Y2K Planning and Preparation
Blake Anderson, Assistant General Manager, gave a brief report on the District's Y2K
program.
(15) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY
There were none.
(16) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR
ACTION AND STAFF REPORT
Director Gullixson requested an information update about Pimco's investment strategies for the
District's portfolios.
" Minutes of the Finance, Administration and Human Resources Committee Meeting
Pages
February 9, 2000
(17) CONSIDERATION OF UPCOMING MEETINGS
The next FAHR Committee meeting is scheduled for March 8, 2000 at 5 p.m.
(18) CLOSED SESSION
The Chair reported to the Committee the need for a Closed Session, as authorized by
Government Code Sections 54956.8 and 54956.9, to discuss and consider the items that are
specified as Item Nos. 18(a}(1), (2) and (3) on the published Agenda.
The Committee convened in closed session at 7:02 p.m.
Confidential Minutes of the Closed Session held by the Finance, Administration and Human
Resources Committee have been prepared in accordance with California Government Code
Section 54957 .2, and are maintained by the Board Secretary in the Official Book of Confidential
Minutes of Board and Committee Closed Meetings. No reportable actions were taken re Agenda
Item Nos. 18(a}(1), (2) and (3).
At 7:30 p.m., the Committee reconvened in regular session.
(19) ADJOURNMENT
The Chair declared the meeting adjourned at approximately 7:30 p.m.
Submitted by:
r2&i:F
PennyM. K
FAHRCom
\lredon'data1'Wp.dt11\agend11'FAHR'FAHR2000\2000 Mfnutes\020900 FAHR MIN.doc
-\
I =-r
FAHR COMMITTEE Meeting Date To Bd. of Dir.
03/08/00 N/A
AGENDA REPORT Item Number Item Number
Fll~D·/'I
Orange County Sanitation District
FROM: Gary Streed, Director of Finance
Originator: Steve Kozak, Financial Manager
SUBJECT: CERTIFICATES OF PARTICIPATION (COP) MONTHLY REPORT -
FEBRUARY 2000
GENERAL MANAGER'S RECOMMENDATION
Receive and file Certificates of Participation (COP) Monthly Report for the month of
February 2000.
SUMMARY
Since June 1995, the daily rate COP program remarketing agents have been
PaineWebber for the Series "A" and the 1993 Refunding eOPs, and J.P. Morgan for the
Series "C" COPs. Most fixed rate Series 11 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.
D This item has been budgeted, but there are insufficient funds.
D This item has not been budgeted. IZI Not applicable (information item)
ADDITIONAL INFORMATION
For the month of February 2000, graphical and tabular reports are attached. The first
graph entitled, "OCSD 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."
H:\wp.dta\lin\210\crane\FAHR\Fahr2000\Mar\COPR2-00.doc
Revised: 8120198 Page 1
The second bar chart entitled, "Comparative Daily COP Rate History Report," shows the
performance of the District's Daily Rate COPs as compared to a composite index rate,
which represents the average rate of six similar variable rate daily reset borrowings.
The third bar chart entitled, "COP Rate History, Comparison of Highest & Lowest
Rates," compares the performance (monthly average interest rate) of the District's Daily
Rate COPs with the highest and lowest monthly average rates from among six similar
variable rate daily reset COPs.
The table entitled, "COP Rate History, Comparison of Monthly Averages," shows the
monthly variable interest rate performance of the District's Daily Rate COPs as
compared to the composite index. Estimated annual interest payments calculated for a
standard $100 million par amount, are also shown.
Variable rates historically rise at the end of each calendar quarter, and especially at
year-end, because of business taxes and liquidity requirements. The rates tend to
decline to prior levels immediately in the following month.
Staff maintains continuous rate monitoring and ongoing dialog with the remarketing
agents to keep the Committee fully informed about developments in the program as
they may occur.
ALTERNATIVES
None.
CEQA FINDINGS
None.
ATTACHMENTS
1. Graph -OCSD COP Daily Rate History Report
2. Graph -Comparative Daily COP Rate History Report
3. Graph -COP Rate History, Comparison of Highest & Lowest Rates
4. Tabular -COP Rate History, Comparison of Monthly Averages
GGS:SK:lc
H:\wp.dla\finl210\crane\FAHR\Fahr2000\Mar\COPR2-00.doc
Revised: 8120198 Page2
Prepared by Finance, 02/29/2000, 1 :48 PM
COMPARATIVE DAILY COP RATE HISTORY REPORT
FEBRUARY, 2000
ii' -~ 3.00 -+--------
~
2.00
1.00
0.00
DATE O> O> O> O> en O> O> O> O> O> 0 en O> O> O> O> O> O> O> O> O> 0
..: ..: ~ c '3 ci ci 1:f > u c «I ~ ::::J ~ Q) 0 Q) "' :E :E ..., ..., en 0 z 0 ..,
•ocso C COMPOSITE INDEX
G:\excel.dte\fin\2220\geggl\Finance\dailycopintrate.xls
0 0
.si Q) u..
3.50
3.40
3.30
3.20
3.10
3.00
2.90
-2.80 ~ -w t-~ 2.70
2.60
2.50
2.40
2.30
2.20
2.10
2.00
1.90
~
LOW
COP RATE HISTORY
COMPARISON OF HIGHEST & LOWEST RATES
LEH/SCE
PWIOCSOnRWO/WESTRI
l!I Highest rate a OCSD/J.P. Morgan
LEWSCE
LEHllRWO
• OCSD/PaineWebber C3 Lowest rate
G:\excel.dta\fln\2220'Geggl\Flnance\RATEHIST _HILO _bargraph Prepared by Finance, 02/29/2000, 1 :48 P~
(j) "ti
l c i
)> "i
-t RATE(%) a. ~ m CT
:ii '<
I 0 -N w ... °' a. ::!!
0 0 0 0 0 0 0 :J I» :J 0 0 0 0 0 0 0 0 J9 03-Mar-99 ~ ID ~ 17-Mar-99 i3
:J _§ ~ 31-Mar-99 -$ 8i ~ "ti m 14-Apr-99 :c: ::r c;;
;--i
!S 28-Apr-99 0
12-May-99 0 en
26-May-99 c
09-Jun-99 0
23-Jun-99 0
"'C
07-Jul-99 c
++
,, )>
21-Jul-99 m-
)>~ m• -m 04-Aug-99 :::0 -< Ci>-· :::I CJ)CD c: ~ ~~ 18-Aug-99 D>(D er )> -t i 01-Sep-99 ~m ...
15-Sep-99 .. ::c N -
29-Sep-99 0 en
++ 0 -I
13-0ct-99 0 0 CJ)C... ~ o· (')~ 27-0ct-99 <i>s:: <Do ~ 10-Nov-99 ::0 ~Al m D> ::I
24-Nov-99 -a
08-0ec-99
0
::0
22-0ec-99 -I
05-Jan-OO
19-Jan-OO
02-Feb-OO
16-Feb-OO
\
Prepared by Finance, 02129/2000, 1 :48 PM
Mar-99
Apr-99
May-99
Jun-99
Jul-99
Aug-99
Sep-99
Oct-99
Nov-99
Dec-99
Jan-00
Feb-00
AVERAGE
DAILY COP RA TE HISTORY
COMPARISON OF MONTHLY AVERAGES
MARCH, 1999 -FEBRUARY, 2000
ocso
$100M $98.5M $46M
Series''A" Series"C" Series 93 Ref
Paine Webber J.P. Morgan Paine Webber
2.72 2.66 2.72
2.88 2.83 2.88
3.34 3.33 3.34
3.30 3.25 3.30
2.35 2.36 2.35
2.82 2.82 2.82
2.98 2.97 2.98
I 2.99 3.01 2.99
3.36 3.30 3.36
2.93 3.01 2.93
2.51 2.53 2.51
1.95 1.97 1.95
2.68% 2.67% 2.68%
ESTIMATED ANNUAL INTEREST
PAYMENTS PER $100M PAR AMOUNT $ 2,681,667 $ 2,672,500 $ 2,681,667
•FOOTNOTE
Composite Index consists of the following COP transactions:
• IRWD, Series 86, $60M, Smith Barney
• IRWO, Series 93 "A" Refunding, $87.6M, Bankers Trust
• IRWD, Series 93 "B" Refunding, $41.8M, J.P. Morgan
• IRWD, Series 95 Refunding, $117.SM, PaineWebber
Composite
Index•
2.70
2.86
3.34
3.28
2.36
2.83
2.98
3.03
3.38
2.97
2.50
1.99
2.69%
$ 2,685,833
• Western Riverside Co. Reg. Wastewater Auth., Series 96, $25.4M, PaineWebber
• Orange Co., Irvine Coast Asst. Dist. 88-1, $94.5M, J.P. Morgan
• SCE, $192M, Lehman
G:\excel.dta\fin\2220\geggi\Finance\COPdaily$rate comparison
' ' I
'
FAHR COMMITTEE
' AGENDA REPORT
Orange County Sanitation District
FROM: Lisa Tomko, Acting Director of Human Resources
Originator: Janet Gray, Human Resources Assistant
Meeting Date
3/08/00
Item Number
FAHR00-20
SUBJECT: EMPLOYMENT STATUS REPORT AS OF FEBRUARY 10, 2000.
GENERAL MANAGER'S RECOMMENDATION
Receive and file the Employment Status Report.
SUMMARY
Total FTE headcount at the District as of February 10, 2000 is 498.00.
PROJECT/CONTRACT COST SUMMARY
Not applicable.
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.
rg} Not applicable (information item)
ADDITIONAL INFORMATION
To Bd. of Dir.
03/22/00
Item Number
The District had a full-time equivalent (FTE) headcount of 498.00 as of February 10,
2000. The actual number of employees was 508.
There has been 1 promotion during the month of February:
• From:
To:
Collection Facilities Worker I (Collection Facilities Maintenance)
Senior Mechanic (Collection Facilities Maintenance)
There have been no new employees hired during the month of February.
ALTERNATIVES
Not applicable.
llladon\dala1'twp.dtalagenda\FAHRIFAHR2000\2000 Agenda Reports\FAHRQ0.20.dat
Revised: 8/20/98 Page 1
CEQA FINDINGS
Not applicable.
ATTACHMENTS
February 10, 2000 Employment Status Report.
Performance compared to 3-Year Staffing Plan.
\v.don\data1~.cltll\llgenda\FAHR\FAHR20000000 AQenda Repol1a1FAHR00-20.dot
R..i.ed: 8'20t'98 Page2
02/IM!000-2:49 PM
Employment Status Report
.r
R11gul•r Regul•r ActUll/ V•c•nt Budget Pl•n P/•n Po.t/110119
Rogu/ar P•rl·llm• P•rl·l/m11 FTE Poa/l/ona FTE FTE FTE wlln Fin•/ plan
Full-I/me 20hours 30hours Contr11ct lnl11rn LOA Count FY99-00 99-00 00-0.1 01·02 tFY01·l>al
11 o · General Management Admln 4.00 o.oo 0.00 0.00 o.oo 0.00 4.00 0.00 4.00 4.00 4.00 0.00
Total General Manaaement 4.00 0.00 -0.0-0 0.00 0.00 0.00 4.00 0.00 4.00 4.00 4.00 0.00
210 ·Finance Administration 4.00 0.00 0.00 o.oo o.oo o.oo 4.00 o.oo 4.00 4.00 4.00 0.00
220 • Accounting 14.00 0.00 0.00 0.00 0.00 0.00 14.00 2.00 16.00 16.00 16.00 2.00 ;?so· Purchasing & Warehousing 14.00 1.50 0.00 0.00 0.00 0.00 15.50 :too 17.50 17.50 17.50 2.00
Toter Finance 32.00 1.50 0.00 0.00 0.00 0.00 33.50 4.00 37.50 37.50 37.50 4.00
31 O -Communications 8.00 0.00 0.00 0.00 0.00 1.00 9.00 0.00 9.00 9.00 9.00 0.00
Total Communications 8.00 0.00 0.00 0.00 0.00 1.00 9.00 0.00 9.00 9.00 9.00 0.00
510 ·HR & Employee Development 10.00 0.50 0.00 0.00 0.00 0.00 10.50 -0.25 10.25 10.25 10.25 ·0.25
Total Human Resources 10.00 0.50 0.00 0.00 0.00 0.00 l0.50 -0.25 10.25 10.25 10.25 -0.25
610 -Technical Services Admin 2.00 0.00 0.00 0.00 0.00 0.00 2.00 0.00 2.00 2.00 2.00, 0.00
620 • Environmental Compllance & Monitoring 17.00 0.00 0.00 0.00 1.00 0.00 18:00 250 20.50 20.50 20.50 2.50
630 • Erwlronmental Laboratory 29,00 2.00 0.00 0.00 0.50 0.00 31.5.0 0;50 32.00 32.00 32.00 0.50
640 • Source Control 33.00 0.00 0.75 0.00 0.00 0.00 33.75 o:oo .33.75 33.75 33.75 0.00
650 • Safely & Emergency Response 7.00 o.oo 0.00 0.00 o.oo 0.00 1:00 0.50 7.50 7.50 7.50 0.50
0.00
Total Technical Services 88.00 2.00 0.75 0.00 t.50 0.00 92.25 3.50 95.75 95.75 95.75 3 .. 50
710 • Engineering Administration 3.00 0.00 0.00 0.00 0.00 o.oo 3.00 0.00 3.00 3.00 3.00 0.00
720 • Planning & Design Engineering 30.00 0.00 0.75 0.00 0.50 0.00 31.25 4,00 35.25 35.25 35.25 4.00
730 • Construction Management 35.00 0.00 0.00 0.00 0.00 1.00 36.00 0.75 36.75 36.75 36.75 0.75
Total Engineerinq 68.00 0.00 0.75 0.00 0.50 1.00 .70.25 4.75 75.00 75.00 75.00 4.75
420 ·Collection Facillties Mice 16.50 0.00 0.00 0.00 0.00 0.00 16.50 1.op 17.50 19.50 19.50 3.00
430 • Plant Maintenance 29.50 0.00 0.00 0.00 0.00 0.00 29.50 0.00 29.50 29.501 28.50 ·1.00
810 • 0 & M Administration 2.00 0.00 0.00 0.00 o.oo o.oo 2.00 1;00 3.00 2.00 2.00 0.00
820 · 0 & M Process Support 9.00 0.00 0.00 0.50 0.50 0.00 10,00 O'.QO 10.00 9.25 9.25 ·0.75
830 · Plant 1 Operations 33.00 0.50 0.00 0.00 o.oo 0.00 33.!iO -0 .. 11 33.33 34.33 34.33 0.83
840 • Plant 2 Operations 39.00 0.00 0.00 0.00 0.00 0.00 39,,00 0.33 39.33 37.33 37.39 ·1.67
850 • Mechanical Mica 45.00 0.00 0.00 MO 0.00 0.00 :45',00 0.50 45.50 45.50 45.50 0.50
860 · Electrical & Instrumentation Mice 55.00 0.00 0.00 0.00 0.00 0.00 ·ss:oo ·a.so 55.50 55.50 .55.50 0.50
870 • Cogeneration 9.00 0.00 0.00 0.00 0.00 0.00 9.00 1.34 10.34 10.34 10.34 1.34
BaO • Air Qualify & Special Projects 9.00 0.00 0.00 o.oo 1.00 0.00 10.00 0.00 10.00 9.50 9.50 -0.50
Total Ooeratlons & Maintenance 247.00 0.50 o.oo o.so 1.50 0.00 24"50 4.50 254.00 252.75 251.75 2.25
910 • IT Admin 2.00 0.00. 0.00 0.00 a.oo 0.00 2.00 o.oo 2.00 2.00 2.00 0.00
930 • Customer & Ne1Work Support 11.00 0.00 0.00 0.00 o.oo 0.00 11.00 4.00 15.00 15.00 15.00 4.00
940 • Programming & Database Sys 7.00 0.00 0.00 0.00 0.00 1.00 8.00 ·1.00 7.00 7.00 7.00 ·1.00
950 • Process Controls Integration 8.00 o.oo 0.00 0.00 0.00 o.oo 8.00 1.00 9.00 9.00 9.00 1.00
Total Information Technoloav 28.00 0.00 0.00 o.oo 0.00 1.00 3.00 4.00 33.00 33.00 33.00 4.00
Total Stafflnci 485.0DI 4.501 1.501 a.sol 3.501 3;00 '198.00 20.50 518.SO 517.25 511>.25 18.25
Offers Outstanding: 2.00
Recruitments pending, but not offered: 7,00
Actual FTE's wiifcujr96ff!cruiimants fiiied: 507:00
g:\O~cel dta\hl\510l>taovu\3·Yur Sllllfjng Pion
Performance to 3-Year Staffing Plan
550
540 •• '·
530 ., ·-.,_ -·
520
-. -._ .,
·-----·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·
510
500
490
480 • FTE Headcount
-· • • -3 Year Staffing Plan
J A S 0 N D J F M A M J J A S 0 N D J F M A M J
I FY 98-99 I FY 99-00
1 ' I
FAHR COMMITTEE Meeting Date
03/08/00
AGENDA REPORT Item Number lr##.ea'-ei.i.
Orange County Sanitation District
FROM: Gary Streed, Director of Finance
Originator: Steve Kozak, Financial Manager
SUBJECT: QUARTERLY INVESTMENT MANAGEMENT PROGRAM
REPORT FOR THE PERIOD OCTOBER 1, 1999 THROUGH
DECEMBER 31 , 1999
GENERAL MANAGER'S RECOMMENDATION
Receive and file the Quarterly Investment Management Program Report for the
period October 1, 1999 through December 31, 1999.
SUMMARY
Section 15.0 of the District's Investment Policy includes monthly and quarterly
reporting requirements for the District's two investment portfolios. These two
funds, the "Liquid Operating Monies," and the "Long-Term Operating Monies,"
are managed by PIMCO, the District's external money manager.
The ongoing monitoring of the District's investment program by staff and Callan
Associates, the District's independent investment advisor, indicates that the
District's investments are in compliance with the District's adopted Investment
Policy and the California Government Code, and that overall performance has
tracked with benchmark indices. In addition, sufficient liquidity and anticipated
revenues are available for the District to meet budgeted expenditures for the next
six months. The District's portfolios do not include any reverse repurchase
agreements or derivative securities.
PROJECT/CONTRACT COST SUMMARY
N/A
BUDGET IMPACT
0 This item has been budgeted. D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted.
t8] Not applicable (information item)
\ltadonldata1\wp.dtalfinl210\ctane\FAHR\Fahr2000\Mar\QuarterlylnvMgmtReport03·00.doc
Revised: 1/5198 Page 1
To Bd.
03/22/00
Item Number
ADDITIONAL INFORMATION
Performance Reports
The Quarterly Strategy Review, prepared by PIMCO, and the Investment
Measurement Quarterly Review, prepared by Callan Associates, are attached for
reference. Also attached are four comparative bar charts which depict the sector
diversification and credit quality of the District's portfolios, as of
September 30, 1999, and December 31, 1999. The Liquid Operating Monies
portfolio, with an average maturity of 90 days, consists entirely of cash equivalent
investments such as U.S. Treasuries and corporate discount notes.
Portfolio Performance Summary
The following table presents a performance summary of the District's portfolios
as compared to their benchmarks for the period October 1 through
December 31, 1999.
Portfolio Perfonnance Summary
Quarter Ended December 31, 1999
Liquid Operating Monies Long-Term Operating Monies(%) (%)
Total Rate
of Return Benchman«11 Total Rate of
Re tum Bendlmark111
3 Months 1.4 1.3 0.6 0.4
6 Months 2.7 2.4 1.8 1.5
9Months 3.9 3.6 1.9 1.8
12 Months 5.1 4.7 2.3 2.2
Since inception 30 Sept. 95 5.5 5.1 6.1 5.8
Market Value per PIMCO 30 Sept. 99 :ti19.6M $282.9M
Average Quality "AA+" "AAA"
Current Yield(%) 5.53 6.20
Estimated Y1eld to Maturity(%) 6.02 6.63
Quarterly Deposits (Withdrawals) $10.0M
Estimated Annual Income $1.1M $17.6M
(1) Benchmarks:
• Liquid Operating Portfolio: 3-Month Treasury Bill Index
• Long-Term Operating Portfolio: Merrill Lynch Corp/Govt 1-5 Year Bond Index
Market Recap
Interest rates moved higher in the fourth quarter of 1999, capping the worst year
in the bond market since 1994, as investors remained concerned that the Federal
Reserve wou ld, again, boost interest rates to prevent the economy from
overheating.
\\radonldala11wp.dlallinl210\cranelFAHR\Fahr2000\M3r\QuartertylnvMgmtReport03-00.doc
Revised: 1/5/98 Page 2
The full year of 1999 was a difficult one for fixed income investors, with U.S.
interest rates rising as much as 180 basis points for some maturities. At their
November 16 meeting, the Federal Reserve raised the Fed funds rate by 25
basis points, from 5.25% to 5.50%, the third such increase during 1999. The Fed
left rates unchanged in December due to market uncertainties surrounding Y2K.
Rates rose across the entire Treasury yield curve, driven largely by the belief of
investors that the Fed would raise interest rates. As depicted in the attached
comparative graph of the Historical Yield Curve, the yield on the 30-year
Treasury benchmark jumped 43 basis points, closing the fourth quarter at 6.48%
when compared to the end of the third quarter 1999 at 6.05%. Yields on 10-year
Treasury bonds ended the quarter at 6.40%, a climb of 52 basis points from the
end of the third quarter (5.88%).
Shorter rates showed similar significant increases. The 3-month Treasury rate
increased by 47 basis points (from 4.85% to 5.32%); the 6-month rate jumped a
full 78 basis points (from 4.95 % to 5.73%); and the 1-year rate rose 79 basis
points (from 5.18% to 5.97%).
For the Long-Term Operating Monies portfolio, PIMCO maintained a weighted
maturity or duration slightly below the duration index (2.13 vs. 2.32 years),
emphasizing holdings in mortgage-backed securities, investment grade corporate
notes, and real return bonds. The performance of the portfolio outperformed its
benchmark by 23 basis points for the fourth quarter (0.64% vs. 0.41%).
For the Liquid Operating Monies portfolio, PIMCO continued to use an "at index"
duration (approximately 58 days vs. 90 days), emphasizing high-quality corporate
securities and commercial paper. This added returns to the portfolio, which
outperformed its benchmark by 12 basis points for the fourth quarter (1 .37% vs.
1.25%).
Market Outlook
Forecasts from PIMCO report that economic growth will remain solid, but will
show modest slowing over the next nine months. Growth is likely to be stronger
in the first half of 2000 as widespread Y2K disruptions have not materialized , and
strong stock and housing markets will support higher levels of consumer
spending. PIMCO expects the Fed will tighten the federal funds rate at least
once during the first half of 2000 to cool the economy. Thus, inflation is expected
to remain benign over the longer term.
The PIMCO investment strategy targets portfolio duration slightly above index to
take advantage of higher yields provided by longer maturity securities. PIMCO
indicates that they will continue to hold short and intermediate maturity real return
bonds; concentrate on higher quality investment-grade corporate holdings; and
emphasize adjustable-rate mortgages to capture higher relative yields.
\Vadon\data1 \wp.dta\Hnl210\cranelFAHR\Fahr2000\Mal'\QuarteriylnvM9m1Repert03-00.doe
Revised: 1/5198 Page3
The attached letter from PIMCO provides a more detailed description of fourth-
quarter market conditions, portfolio returns, future market outlook, and their
recommended investment strategy for the District's Liquid and Long-Term
Operating Monies portfolios.
Portfolio Market Values
On December 17, 1999, the sum of $10 million was received from the Orange
County Tax Collector's property tax allocation cycle, and was deposited in the
District's Long-Term portfolio for investment.
Comparative marked-to-market quarter-end portfolio values are shown in the
table below, and in the attached bar chart.
ALTERNATIVES
N/A
CEQA FINDINGS
NIA
ATTACHMENTS
1 . PIMCO Report
2. Callan Report
Quarter
Ending
31 Dec. 98
31 March99
30 June 99
30 Seot 99
31Dec.99
Liquid
Operating
Monies ($M)
18.6
18.8
19.0
19.3
19.6
3. Quarter End Portfolio Market Value Bar Chart
4. Four Comparative Bar Charts
5. Historical Yield Curve Graph
6. PIMCO Letter dated February 3, 2000
SVK:lc
l\radon\dala1\wp.dla\llnl210\aane'i'AHR\Fahr2000\Mar\Quarter1yl11vMgm1Repo<103--00.doc
Revtsed: 1f5/98
Long-Term
Operating
Monies ($M)
304.5
305.8
305.9
271.1
282.9
Page 4
Prepared by Finance, 02/16/2000, 10:54 AM
$300,000,000
$2501 000 I 000
$200,000,000
$150,000,000
$100,000,000
$50 I 000 I 000
OCSD Investment Management Program
Quarter End Portfolio Values
(Marked-to-Market)
31Dec98 31 Mar 99 30 Jun 99 30 Sep 99 31Dec99
I CJ Liquid Operating Monies lfJ Long-Term Operating Monies I
G:\excel.dta\fin\2220\geggi\Finance\lnvestmgmtprogram
Prepared by Finance, 02116/2000, 10:43 AM
100
90
80
.....-.. 70
~ 60 0 ........... ..,
c: 50 Q)
0 L-40 Q) a.. 30
20
10
0 0 0
Govt
OCSD Liquid
Operating Monies Portfolio
Investment Diversification 100100
0 0 0 0 0 0 0 0
Mtg Corp Non US$ Other Net Cash
Equivalent
G:\excet.dta\fin\2220\geggi\Finance\Portfolio short term
D 9/30/99
~ 12/31/99
Prepared by Finance, 02/16/2000, 10:44 AM
OCSD Long-Term
Operating Monies Portfolio
Investment Diversification
100 ~~~~~~~~~~~~~~~~
90 ---~~~~~~~~~~~~~~~
BQ -1--~~~~~~~~~~~~~~
.-. 10~~~~~~~~~~~~~~~~
~ 60 -4--~~~~~~~~~~~~~~~~~~~~-l
~ c:
Q)
~
Q)
0...
so ~~~~~~~~~~~~~~~~
40 40
30
20
10 0 0 0 0 0 -l-.L-.E.&&L____,-_L---..£o1L«L--r--'--...£&.11:...._r--~~--.-~~~~--"~~
Govt Mtg Corp Non US$ Other Net Cash
Equivalent
G:\excel.dta\fin\2220\geggi\Finance\Portfolio long term graph
D 9/30/99
~ 12/31/99
Prepared by Finance, 02/16/2000, 10:45 AM
G:\excel.dta\fin\2220\geggl\Finance\Portfolio short term
Prepared by Finance, 02/16/2000, 10:47 AM
OCSD Long-Term
Operating Monies Portfolio
Investment Credit Quality
100
90
80
70 ...-... ~ 60 D 9/30/99 0
'-"" ..., ~ 12/31/99 c: 50 Q)
~ 40 Q) a_
30 21 18 19 20
20
10
0
A1/P1 AAA AA A
G:\excel.dta\fin\2220\geggl\Finance\Portfolio long term graph
..
Prepared by Finance, 02/16/2000, 10:51 AM
I HISTORICAL YIELD CURVE I
7.00
6.75
6.50
6.25
6.00 -5.75 .,. -c .J 5.50 w >
5.25
5.00
4.75
4.50
4.25
4.00
0 0 E E
"' co
-+-30-Jun-99 --t:t-30-Sep-99 -a-31-0ec-99
G:\excel.dta\fin\2220\geggi\Finance\HistoricalTREASURYyieldcurve
--
February 3, 2000
Mr. Steve Kozak
Finance Manager
Orange County Sanitation District
P .O. Box 8127
Fountain Valley, CA 92728-8127
Re: Fourth Quarter Report
Dear Steve:
l:>ACJFIC INVESTMENT M ANAGEMENT COMPANY
840 Newport Center Drive
Suite 300
Newport Beach, CA 92660
Tel: 949.720.6000
Fax: 949.720.1376
What follows is a description of events in the bond markets during the 4th Quarter 1999 and
an analysis of the strategies undertaken in the Orange County Sanitation District's Long-Term
and Liquid portfolios over the period. I have also included a section on strategies to be
pursued in your portfolio during the coming months.
Bond Market Recap:
Rates Move Higher in Final Quarter, Capping Difficult Year
Interest rates moved higher in the fourth quarter, capping the worst year in the bond market
since 1994, as investors anticipated that more Federal Reserve tightening would be needed to
prevent the economy from overheating. The yield on the 30-year Treasury closed at 6.48
percent, up 43 basis points, while shorter-term rates rose 40 to 80 basis points.
The full year 1999 was a difficult one for bond investors1 with U.S. interest rates rising as
much as 180 basis points for some maturitjes. This increase came as robust economic .
expansion in the U.S. and accelerating growth in Europe and Asia boosted demand for capit<ll
worldwide and caused inflation to rise from lows reached in the previous year.
The Federal Reserve raised the federal funds rate by 25 basis points to 5 . 5 percent on
November 16, the third such increase this year. The Central Bank has now taken back all
three of its rate cuts from last year, when market participants were preoccupied with the threat
of global deflation and reduced liquidity in financial markets. The Fed left rates unchanged in
December because of market uncertainties surrounding Y2K. Still, investors remained
concerned that the combination of rapid growth and a dwindling pool of workers would
increase wage pressures and force the Fed to tighten further in 2000.
An upward revision of third quarter growth to 5. 7 percent -the fastest pace in almost a year
-as well as surging consumer confidence heading into the holiday season did nothing to ease
those concerns. Even so, there were signs that higher interest rates had begun to moderate the
Mr. Steve Kozak
Orange County Sanitation District
Bo11d ~1.arket Recap: (Continued)
February 3, 2000
Page Two
expansion. Investment in new housing fell and mortgage refinancings continued to decline as
mortgage rates hovered near 8 percent. Moreover, actual IDflation remained relatively ·
subdued, held in check by productivity gains and intense price competition in industries such
as autos and apparel.
Higher Yielding Sectors Outperform for Quarter and Year
Managers who focused on higher yielding bonds amid general market weakness were
rewarded, as these securities outpaced Treasuries for the fourth quarter and all of 1999.
Bonds that offered the most attractive yields -emerging markets and non-investment grade
corporates -performed best. The following summarizes relative sector performance during
the fourth quarter:
• Mortgages outperfonned as yield premiums narrowed in the face of declining market
volatility. Higher mortgage rates meant that more than 80 percent of the mortgage market
was priced at a discount~ substantially reducing prepayment risk.
• Corporate bonds -both investment and non-investment grade -benefited from the strong
economy, which helped companies post better-than-expected profits and mitigated concern
about rising default rates. Slower new issuance also supported the corporate market.
• Emerging market credits performed well, as more balanced worldwide economic growth
and higher commodity prices improved prospects for exports in many countries.
• Currency-hedged European and Japanese bonds outperformed Treasuries because the pace
of economic growth, and hence inflation expectations, in these countries lagged the U.S.
The Merrill Lynch 1-5 year Government/Corporate experienced a return of 0.41 percent.
Returns by sector were as follows:
Sector
Treasury
Agency
Corporates
Total Monthly return
0.273
0.56 3
0.24%
Pedormance Attributi1Jn:
Long Term Portfolio
The Long-Term portfolio that PIMCO manages on behalf of Orange County Sanitation District
turned in a 0.64 percent return over the quarter, outperforming the Merrill Lynch 1-5 year
PACIFIC INVESTMENT MANAGEMENT COMPANY
Mr. Steve Kozak
Orange County Sanitation District
Perfomunzce Attribution: (Continued)
February 3, 2000
Page Three
Government Corporate Index by 23 basis points. This portfolio's performance was due in part
to the following factors:
• Maintaining a below-index duration positively impacted returns as interest rates rose.
• Our broader-than-index maturity structure was modestly positive as the yield curve
flattened .
• Mortgages enhanced returns due to reduced price volatility and attractive yield premiums.
• Investment-grade corporates aided performance as yield premiums narrowed due to strong
growth and reduced issuance.
• Real return bonds outperformed as real yields increased less than comparable nominal
Treasury yields.
Liquid Portfolio
The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District
turned in a 1.37 percent return over the quarter, outperforming the 3 month Treasury Bill
Index by 12 basis point. This portfolio's performance was due in part to the following factors:
• Our index like portfolio duration was neutral for the quarter.
• Investment-grade corporates, especially higher yielding issues, enhanced performance as
credit spreads narrowed amid strong growth and a reduction in new issuance.
1110ttarter 2000 Outlook:
Economic Growth To Slow Modestly But Remain Solid
U.S. economic growth will slow modestly over the next nine months but remain solid.
Growth is likely to be stronger in the first half of 2000 as widespread Y2K disruptions have
not materialized and strong stock and housing markets will support high levels of consumer
spending. Resurgent economies in Europe and Asia will help sustain growth by absorbing
more U.S. exports. However, several factors threaten to slow growth in the second half of the
year, including the following:
• Non-U.S. investors, who enjoy increasingly attractive investment opportunities elsewhere
in the world, could require higher U.S. interest rates to continue financing the widening
U.S. trade deficit.
PACIFIC INVESTMENT MANAGEMENT COMPANY
.-
Mr . Steve Kozak
Orange County Sanitation District
p rquarter 2000 Ouilook: (Continued)
February 3, 2000
Page Four
• Consumers could begin to moderate their spending if the surging equity market cools off,
thereby reversing the recent trend of a declining savings rate.
Inflation Will Trend Upward But Remain Relatively Benign
Inflation increased modestly in recent months as deflationary forces such as falling commodity
prices and a strong dollar began to reverse themselves. Inflation will continue to trend upward
for the following reasons:
• Economic growth will reduce the supply of available workers and heighten the rjsk of
accelerating wage increases.
• Import prices will rise because capital outflows to faster growing economies will weaken
the U.S. dollar.
• Stronger economies in Europe and Asia have led to rising commodity prices, the effects of
which will continue to work their way through the economy.
While there will be upward pressure on interest rates in response to higher inflation, rates are
unlikely to move far above the top of our secular range because inflation will remain relatively
benign. Several factors will help contain increases in inflation. First, we expect that the Fed
will tighten at least once during the first half of 2000 to cool the economy. In addition, strong
productivity gains will hold down increases in unit labor costs, while relatively low capacity
utilization will limit producers' ability to pass on wage increases.
Yield Enhancement Will Remain Key to~Outperformance
Yield enhancement will continue to offer better opportunities for outperfonnance than interest
rate strategies in a low-volatility rate environment. Collecting premium income from writing
options is one way to take advantage of range-bound rates; mortgages, which offer yield
premiums well above Treasuries at a time when refinancing risk is low, are another.
Corporate and emerging market bonds also offer attractive yield premiums but, unlike
mortgages, present credit risk. In these sectors, investors will need to focus on issues with the
highest risk-adjusted yields given lingering concerns about high levels of corporate debt, rising
default rates and fiscal imbalances in some emerging market countries. U.S. real yields
remain higher than in most other developed economies, giving portfolio managers little reason
to venture outside the U.S.
PACIFIC INVESTMENT MANAGEMENT COMPANY
Mr. Steve Kozak
Orange County Sanitation District
Strategy:
February 3, 2000
Page Five
The following list highlights the strategies that will be used in the Long Tenn portfolio in the
coming months:
• Target duration slightly above the benchmark to talce advantage of higher yields on longer-
maturity securities.
• Maintain a broader-than-index maturity structure in order to capture value across the yield
curve.
•
•
•
•
Concentrate investment-grade corporate holdings on higher quality credits .
Emphasize mortgages to capture higher relative yields and shift toward higher coupon
issues now that refinancing risk bas diminished.
Continue to favor adjustable-rate mortgages as high yielding, short-term holdings .
Continue to hold short and intermediate maturity real return bonds to take advantage of
historically high real yields.
The following list highlights the strategies that will be used in the Liquid portfolio in the
coming months:
• Target duration near the half-year neutral point to capture additional yield while limiting
the overall interest rate sensitivity of the portfolio.
• Continue to emphasis high quality commercial paper.
• Maintain exposure to select short-duration corporate issues to capture relatively high
yields.
Steve, we hope this information proves useful, and look forward to discussing these and other
issues with you in the near future.
Sincerely,
?.~ 1 l_
Rita J. Seymour
Vice President
RJS/JAF:ci
Joseph A. Fournier
Account Manager
PACIFIC INVESTMENT MANAGEMENT COMPANY
FAHR COMMITTEE Meeting Date
03/08/00
AGENDA REPORT Item Number
FAHR00-23
Orange County Sanitation District
FROM: Gary G. Streed, Director of Finance
Originator: Michael D. White, Controller
SUBJECT: Selection of the District's Independent Financial Auditors
GENERAL MANAGER'S RECOMMENDATION
Authorize staff to.issue a purchase order contract to appoint Moreland &
Associates as the District's independent auditors for fiscal year 1999-00 for an
amount not to exceed $42,600, with an option of auditing fiscal years 2000-01
and 2001-02 upon staff approval, and an option of auditing fiscal years 2002-03
and 2003-04 upon Board approval.
SUMMARY
Moreland & Associates has served as the District's auditors for the past 5 years.
At the direction of the Committee, staff solicited a Request For Proposal For
Professional Auditing Services (RFP) for fiscal year 1999-00, with the option of
auditing the following two years at staff's discretion. In addition, a two-year
extension beyond this three.,year contract period may be granted upon
recommendation by staff and approval by the Board of Directors. The RFP was
submitted to the following firms:
Arthur Andersen
Deloitte & Touche
Ernst & Young
PriceWaterhouseCoopers
McGladrey & Pullen
Conrad & Associates
Diehl, Evans & Co.
Moreland & Associates
Thomas, Bigbie & Smith
Vavrinek, Trine, Day & Co.
Arthur Andersen and Deloitte & Touche sent letters declining to propose at this
time. Ernst & Young made telephone inquiries regarding the proposal but also
declined to propose.
All together, six responses were received. An Evaluation Team comprised of
the Director of Finance, Controller, and Accounting Manager was established,
and performed a preliminary evaluation ranking on these six proposals. Listed
below are the results of the preliminary evaluation in the order of the ranking
done by staff, followed by the first year maximum fee quoted in their proposals,
and then by estimated audit hours:
Initial Evaluation Maximum Estimated
Ranking By Staff Fee -1st Yr. Audit Hours
To Bd. of Dir.
03/22/00
Item Number
H:lwp.dtalagenda\FAHR\FAHR20000000 All8flda Reports\FAHR00.23.doc
RtMsed: 115196 Page 1
Moreland & Associates 94 $42,600 818
Conrad & Associates 89 36,865 700
Diehl, Evans & Co. 82 49,000 570
Vavrinek, Trine, Day & Co. 79 43,800 570
McGladrey & Pullen 78 48,600 575
Thomas, Bigbie & Smith 77 46,300 500
The initial evaluation performed by staff was done in accordance with the criteria
set forth in the RFP, without consideration of fees, as follows:
1. Past experience on comparable government engagements.
2. Quality of firm's professional personnel assigned to the
engagement.
3. Quality of firm's management support.
4. Adequacy of proposed staffing plan.
5. Adequacy of sampling techniques.
6. The degree of anticipated support requirements of District's staff.
Based on the initial screening, the Evaluation Team interviewed the top three
firms:
Moreland & Associates
Conrad & Associates
Diehl, Evans, & Co.
Each of these three finalists is qualified to serve as the District's auditors.
However, Moreland & Associates distinguished themselves from the rest, as
follows:
• Assignment of Michael Moreland as the audit engagement partner.
Mr. Moreland has over 20 years experience in governmental
financial audits and is currently Chairman of the State
Governmental Accounting and Auditing Committee of the California
Society of Certified Public Accountants and of the California
Committee on Municipal Accounting. In addition, Mr. Moreland was
the only California CPA who was ·a member of the Governmental
Accounting Standards Board's Task Force on the development of
the Financial Reporting Model, GASB Statement No 34.
• Proposed the highest number of estimated hours that would be
necessary to complete the audit. This coupled with the fact that
Moreland & Associates was the only firm to recognize that GASB
Statement 34 would have to be implemented by the District in
2001-02 indicated to the Evaluation Committee that Moreland &
Associates had the best understanding of the District's audit needs.
H:\wp.dla'-genda\FAHRIFAHR2000.2000 Agenda Repoi1a\FAHR00.23.doc:
RoMsed: 1151118 Page2
• Although Conrad & Associates' maximum annual fees were lower
than Moreland & Associates ($36,865 to $42,600), Moreland &
Associate has the lower average hourly rate based each firms total
estimated hours ($52.07 per hour to $52.66 per hour).
• In anticipation of the GASS Statement No. 34 implementation in
2001-02, Moreland & Associates included an increase of $3, 000 in
audit fees in addition to their annual 4 percent increase. In
addition, Mr. Moreland is also offering to donate up to thirty hours of
his own time to assist the District in the implementation of the new
reporting model. Although Conrad & Associates fees will increase
each year at a nominal 3 percent, they do qualify their proposed
annual fee by stating in their proposal that their fixed fee does not
include changes in the scope of the audit that might result from the
implementation of GASB Statement No. 34.
Therefore, the Selection Committee recommends appointment of Moreland &
Associates to provide audit services for the 1999-00 period. As requested in the
RFP, Moreland & Associates also submitted their proposed maximum fees for
the succeeding two years, as follows:
1999-00
2000-01
2001-02
PROJECT/CONTRACT COST SUMMARY
NIA
BUDGET IMPACT
D This item has been budgeted.
$42,600
44,300
49,000
D This item has been budgeted, but there are insufficient funds.
[8J This item has not been budgeted.
D Not applicable (information item)
The fees for the 1999-00 audit will be included in the Joint Works budget for
2000-01.
H:\wp.dl31apendalFAHRIFAHR20000000 A99nda Repoo151FAHR00-23,doc
R8'<1iaed: , 151118 Page3
F~HR COMMITTEE Meeting Date To Bd. of Dir.
02/08/00 N/A
AGENDA REPORT Item Numbefv Item Number
Yf/JH!. oo--7
Orange County Sanitation District
FROM: Gary Streed, Director of Finance
SUBJECT: FINANCIAL CONSOLIDATION OF, AND DEVELOPMENT OF A SINGLE
USER FEE RATE FOR, REVENUE AREAS 1, 2, 3, 5, 6, 11 AND 13
(REVENUE AREAS 7 AND 14 TO CONTINUE CURRENT REVENUE
PROGRAM)
GENERAL MANAGER'S RECOMMENDATION
The General Manager recommends rate and financial consolidation when the Directors have
sufficient information to decide.
SUMMARY
At the last FAHR Committee meeting the Directors requested additional information and
suggested a workshop. The Steering Committee directed staff to present the requested
information to the FAHR Committee in lieu of a weekend workshop.
PROJECT/CONTRACT COST SUMMARY
Minimal costs, other than staff time. Financial and rate consolidation results in overall
lower user fees.
BUDGET IMPACT
D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds.
C8J This item has not been budgeted. D Not applicable (information item)
ADDITIONAL INFORMATION
Several worksheets and graphs are enclosed with this report. They are intended to
provide background information requested by the Committee and to stimulate
discussion at the meeting. Each is briefly described with bullet points in the following
sections.
Exhibit A: Revenue Area Representation
• When current fees were established the vote was by District. Each Director voted
on ly on the fees in the District which included the Director's city.
H:\wp.dta\linl210\cranelFAHRIFahr20001MarlFAHRFinConsolidalion.doc
Revised: 6120198 Page 1
• Since the 1998 consolidation, all of the Directors vote for all of the Revenue Areas,
whether or not that Director's city is included in the Revenue Area.
• A vote to change fees now requires a two-thirds vote of all of the Directors, or 17
votes.
• This schedule provides an idea of how many people and cities are affected by rate
decisions.
Exhibit B: Analysis of Net Assets
• Net assets is a better measure of current economic health than simply "reserves" or
cash balances. Net assets is the sum of current cash balances and fixed assets,
less the sum of depreciation, outstanding debt and other liabilities.
• The ranking of Revenue Areas by net assets can be based on several variables.
Just using the total is too simplistic and misleading because of the varying sizes of
the Revenue Areas.
• The chart shows net assets for each Revenue Area on the basis of per capita, per
flow in million gallons a day, per acre of land and per $100 of assessed value.
• The blue highlights show that ranking by each of the variables produces a different
Revenue Area with the highest value. This indicates that the relationship between
net assets and user fees may not be a good decision criteria as selecting the
variable alters the result.
Exhibit C: Previously Adopted Supplemental User Fees
• The first user fee was adopted in 1982 in District 5. Other Districts adopted fees as
their financial situations required, until all had user fees in 1991 .
. · · • Regular, routine and required fee incfeases were a part of the Financial Plan
adopted in 1990.
• Rate increases were deferred from 1991 to 1997 because of the poor economy.
• In 1992-93 fees were increased as an urgency measure to replace property taxes
anticipated to be confiscated by the State. District 11 did not increase fees at this
time.
• In 1997 Districts 1 and 11 adopted 10-year rate increases and Districts 2 through 7
adopted 5-year rate increases after considerable study and evaluation of
alternatives.
• When the Districts consolidated on July 1, 1998, the new District adopted the
previously approved rate increases through 2001-02 for each of the Revenue Areas.
The remaining 5 years of adjustments for Revenue Areas 1 and 11 were not
adopted.
H:lwp.dla\lln\21DlcranelFAHRIFahr2000\Mar\FAHRFinConsotidation.doc
Revised: 8120/98 Page 2
• The adoption of a revised rate structure for 1998-1999 after the Rate Advisory
Committee and Strategic Plan process allowed for some minor rate decreases in
order for the program to be "revenue neutral."
• No Board actions are required to implement the previously adopted rates or slightly
reduced rates for 2000-01 and/or 2001-02.
Exhibit D: Average Daily Flow
• Most costs at the District are based upon or caused by wastewater flow. The O&M
projected for each year depend upon flow projections. Lower flows will result in
lower user fee projections. A portion of the Capital Improvement Program is for
additional capacity, based upon flow projections.
• Strategic Plan flow projections were based upon population projections, city general
plans, and history.
• Current flows are somewhat below the Strategic Plan estimates. Projected fl ows in
the year 2020 remain unchanged.
• Average daily flow is variable and difficult to project.
• Higher average flow years may correspond to higher rainfall years.
• Higher than average rainfall was experienced in 1994-95 and 1997-98.
• Higher than average flows were also experienced in 1994-95 and 1997-98.
• The increased flows seem to be proportional to the rainfall.
• Higher than average flows in 1996-97 are not explained by rainfall.
Exhibit E: SFR Sewer User Fee Breakdown
• Many factors affect user fee calculations, including costs and revenues.
• All current revenue streams are projected to continue.
• User fees are for three main categories of costs: Operations & Maintenance, Capital
Improvements and Rehabilitation, and Debt Service.
• New debt financing requires increased fees, but less than pay-as-you-go.
• Summary schedule for 1999-2000, 2003-04 and 2008-09 shows that the majority of
increased user fees will be used for the capital improvement program and debt
service.
H:\wp.dlalfin\210\ttane\FAHR\Faht2000\Mar\FAHRRnConsollcfaUon,doc
Rellised: 8/20198 Page 3
Exhibit F: Projected SFR User Fees Charts
• There are individual graphics for four alternatives.
• Alternative 1 is the status quo. Each Revenue Area adopts its own fees based upon
its own needs. This alternative raises the most fees.
• Alternative 2 implements the previously adopted fees for the next two years. Fees
above the average are then maintained until the average reaches their level. By
2013-14, all Revenue Areas will have the same fee. This alternative avoids fee
increases for several years after 2002-03 in Revenue Areas 1, 5, 11 and 13.
• Alternative 3 implements the previously adopted fees for the next two years also. In
2002-03 all Revenue Areas adopt the same fee. This alternative results in reduced
fees for users in Revenue Areas 1, 3, 5, 11 and 13; approximately 1.2 million people.
• Alternative 4 implements the unified consolidated rate immediately in 2000-01,
unless the previously adopted rate is lower. In that case, the previously adopted
rates are implemented until they reach the average. All Revenue Areas are paying
the same rate in 2001-02. This alternative results in rate decreases in 2000-01 for
Revenue Areas 1, 2, 5, 6, 11 and 13, approximately 1.3 million people.
Exhibit G: Annual SFR Sewer User Fees
• This schedule summarizes the four alternatives.
• No fees are currently adopted for 2002-03. Potentially fees will increase for some or
all of our 2.2 million users.
• The proposed annual sewer fees are shown by year for each alternative and each
Revenue Area.
• The Jowest fee is highlighted for each year, for each alternative, and each Revenue
Area.
• All of the consolidation alternatives result in lower average fees than those from
retaining separate revenue areas.
• Population estimates are also provided to help gauge the impact of the changes.
• A lternative 4 provides immediate rate reduction to approximately 1.3 million users.
Exhibit H: One District Excluding 7 & 14 One Rate Cash Flow Projections
• Provides "detail" to support earlier summary of User Fee Breakdown.
• O&M Expense, line 9, is based on current cost per mg and projected flows.
• Capital Outlay, line 10, is from Strategic Plan.
11:\wp.dla\fin\210\oranelFA11RIFat'tr20001ManFAHRFlnConso!ldaUan.doc
Revised: 6120198 Page4
• COP Services, line 11 , assumes 25·year debt shown on line 4 at 6.5%. Repaying
$100,000,000 adds approximately $11.00 to the annual user fee.
• Annual SFR User Fees are shown on line 17 and calculate the amounts on line 1.
• Schedule assumes property taxes, line 3, will continue to be allocated to District.
• Schedule reflects Alternative 4, the lowest rates. Other alternatives would raise
more fees.
ALTERNATIVES
Four alternatives will be discussed at the meeting.
CEQA FINDINGS
N/A
ATTACHMENTS
H:lwp.dlalfio~10\cranelFAHR\Fahr2000\Mar\FAHRFinConsolldatro11.doc:
Revised: 8/20/98 Page5
03/01/2000 11:59 AM
Revenue Area Representation
Population
Description 1 2 3 5 6 7 11 13 Jan 1, 1999
Est Population, 2000 228,965 656,434 749,953 61,119 111,470 169,146 128,774 46,072
Anaheim x x x 306,298
Brea x x x 36,388
Buena Park x 75,869
Costa Mesa x x x 105,608
Cypress x 48,517
Fountain Valley x x 56,445
Fullerton x x 126,757
Garden Grove x x 156,534
Huntington Beach x x 196,660
Irvine x 136,577
La Habra x x 55,805
La Palma x 16,395
Los Alamitos x 12,031
Newport Beach x x x 73,965
Orange x x x x 127,603
Placentia x 49, 127
Santa Ana x x x x 314,990
Seal Beach x 27,192
Stanton x 33,853
Tustin x x 66,834
Villa Park x 6,630
Westminster x 86,248
Yorba Linda x x 61,839 ~ ::c:
tD
-i
)>
G:\excel.dta\fin\210\streed\City Fees except 7
02/29/2000
RA
1
2
3
5
6
7
11
13
WtdAvg
G:\e>ccel.dta\fln\21 O\streed\99--00 budget\True consolidation
Analysis of Net Assets
Assets Minus Liabilities Including COPs
Shading Indicates Highest Value
Net Assets Per
Total Capita MGD Acre
35,927,871 159 10 2,983
263;057,403 426 26 3,874
265,754,909 371 27 4,068
65,881,509 1, 153 53 5,600
43,303,875 403 33 4,414
97,507,794 614 30 4,362
62,853,871 533 31 6,205
21 ;614,474 758 55 947
422 27 3,865
$100 AV
55
75
79
61
73
61
70
2
72
6:35 PM
Net Assets
m x :c -aJ
=i
aJ
02/29/2000
84-85* 85-86 86-87 87-88 88-89 89-90
ANNUAL SFR FEES
26.40 26.40 26.40 26.40 34.32 45.00
2
3 30.36
5 26.40 26.40 26.40 26.40 26.40 45.00
6 26.40 26.40 29.04 31.68 38.02 49.00
7
11 26.40 40.00
13 70.00 70.00 70.00 78.40 78.40
* Rates Unchanged from year of implementation:
Dist 1:1984, Dist 5: 1982, Dist 6: 1983, Dist 13: 1985
G:\excel.dta\fin\210\streed\old d copy\EXCELDTA\Use Hist
Previously Adopted Supplemental User Fees
90-91 91-92 92-93 * 93-94 94-95 95-96 96-97 97-98
55.00 75.00 83.24 83.24 83.24 83.24 83.24 91.36
55.00 60.00 71.52 71.52 71.52 71.52 71.52 73.00
50.00 60.00 73.89 73.89 73.89 73.89 73.89 75.00
55.00 75.00 96.75 96.75 96.75 96.75 96.75 96.75
55.00 65.00 76.47 76.47 76.47 76.47 76.47 78.00
40.00 50.09 50.09 50.09 50.09 S0.09 SS.DO
.SO.DO 60.00 60.00 60.00 60.00 60.00 60.00 70.00
95,00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
*Rates were originally adopted equal to 1991-92
but increased in response to State tax confiscation
98-99
100.27
75.00
76.00
96.75
80.00
60.00
80.00
100.00
2:45 PM
FieviseCI
Strueture
98-99. 99-00 00-01 01-02
96.41 110.04 120.77 132.55
74,00 16.00 80.00 82.00
75.50 7~.00 78.00 80.00
84.50 87 50 87 50 8150
79.00 8@,QO 84.00 86.00
6000 66.00 73.00 80.00
80.00 90.00 101.25 113.91
~00.00 100.00 100.00 100.00
•RAc rate stucture
allowed decrease for SFR
m x ::i::
tc ~
(")
02/29/2000
>-300 cu c
~ GI a. 250 Ill c ..2 n;
(!) 200 c .2
:!: 150
Average Daily Flow
Actual Thru 1998-99
Growth Projection Thru 2019-20
Fiscal Year Ened June 30
l-1955 Actual -1955 Linear -1992 Linear -COM Projections ---Modified COM Projections J
stratplan\Flow hist & proj_Chart1 4:05PM
m >< :::c
tn =i
c
02/29/2000
Ref
1 012erations & Maintenance
2 Collection System O&M
3 Treatment Plant O&M
4 Total O&M Expense
5 Permitted User Fees
6 Interest Income
7 Net O&M Expense
8 CaQital lm12rovements
9 CollectTon System CIP
10 Treatment Plant GIP
11 Total Capital lmprovemt
12 Connection Fees
13 Capacity Sales, SAWPA
14 From Savings or New COPS
15 Net Capital Outlay
16 Debt Service
17 COP Service
18 Property Taxes
19 Net COP Service
20 Raised by General User Fees
21 No. of Equiv Dwelling Units
22 Average Daily Flow (mgd)
23 New Borrowing
Revenue Area 99-00 Budget X7&14_Use Fee Analysis
SFR Sewer User Fee Breakdown
All Revenue Areas Except 7 and 14
A E
1999-2000 Estimates 2003-04 Estimates
Total Per EDU Total Per EDU
7,720,500 10.26 8,359,000 10.96
38,328,000 50.95 40,641,000 53,27
46,048,500 61.21 49,000,000 64.23
(5,591,000) (7.43) (6,176,000) (8.10)
(20.164,000) (26,80) (17,301,000) {22.68)
20,293,500 26.97 25,523,000 33.45
21.467,100 28.53 26,793,100 35.12
59.803,000 79,49 65,641 .100 86.04
81,270,100 108.03 92,434,200 121.16
(4,823,000) (6.41) (4,847,000) (6.35)
0 0.00 {6,045,000) (7.92)
(42,238,000) (56.14) {63, 190,000) {82.83)
34,209,100 45.47 18.352,200 24.06
32,238,000 42.85 52,976,000 69.44
(29,568,000) (39.30) (32.004,000) {41.95)
2,670,000 3.55 20,972,000 27.49
57,172,600 76.00 64,847,200 85.00
752,320 762,920
240 0.000319 263 0.000345
j
2008-09 Estimates
Total Per EDU
9,231,000 11.89
45,276,000 58,33
54,507,000 70.23
(6,987,000) (9.00)
(16,368,000) (21.09)
31,152,000 40.14
12,812,000 16.51
59,101,000 76.14
71,913,000 92.65
(4,877,000) (6.28)
0.00
{52.690,000) {67.88)
14;346,000 18.48
70,660,000 90.91
(35,337,000) {45.53)
35,223,000 45.38
80,721,000 104.00
776,170
293 0.000377
72,000,000 92.76
K
10 Year
Total
84,560,500
412,430,000
496,990,500
(62.,675,000)
{184,609,000)
249,706,500
171.440,000
704,045,100
875,485, 100
(48,500,000)
(17,591,000)
(597,542,000)
211,852,100
533,865,000
(323, 757,000)
210,108,000
671,666,600
495,000,000
Page 1 of 1
11:27 AM
m >< :::J:
OJ
=i
m
Projected SFR User Fees
$180 -.---------------------,1$191-2 __ $_,.21 1-1 --1$231-2 __ $_,.251-0 --
$160 ~----------1 1----i 1--1 l--l 1-~ 1-1-
$140 -~-----I 1--11--l I-~ ----i--m-t ,_ • ._. t-----
$12 0 -f----rl---------1 1--l 1-------------.t 1----•1--1 1---I 1----•11--1 1----.!
())
())
LL $100
m
:::l c: $80 c
<(
$60
$40
$20
$0 ~
1999-00 2000-01 2001-02 02-03 03-04 04-05
ICJ1 CJ2 •3 c:Js o e CJ? •11
02/2912000 Rate Chart Chart 1
05-06 06-07 07 -08
13 -+-One Rate --wtd Avg I
08-09
10:43AM
m x :I:
OJ
=i
"T1 II ...ii.
$180
$160
$140
$120
Q)
Q)
LL $100 -
rn
:::J $80 c: c: -
<(
$60 -
$40 -
$20 -
$0
02/29/2000
Projected SFR User Fees
""' ._ ---------._ -----~ ""' -.. ... ~ J> ..
--1 1 l l I'\ -r-~ ..
~ ... ~ -= :: I---I----
I;
------I---
11 Ii 11
I• ----,_ -,_ --
11
-,_ -... ... ----
' I
~ ~ ............. -.,.~--_.
---
II
.... --
I•
11
.... --
I---
II ---
' I I
~~
J> -:: ...
-...
-I-
-I-
-,_
--Ii
' '
...
~
I-
I-
m >< :I:
OJ
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 0?.;08 08-09 09-10 10-11 11-12 12-13 f&:t•" =i
101 02 •3 0 5 0 6 07 •11 •13 -+-One Rate l
Rate Chart (3) Chart 1 9:58AM
$180
$160
$140
$120
Q)
Q)
LL $100 -
ro
:::J $80 c c -
<(
$60 -
$40 -
$20 -
$0
0212912000
Projected SFR User Fees
~--. ----:::: I-
#~--~ ~ --
.,,., -~l l } ·-· --~
~ .# -.
I-:::: I::: -------... -
I --_,
I -------r
I I
:
I --_, --_, ----
I
'
I ' ----------
I II
I ' ' I '
--:::~ . ~----· ~ -
---
---
I•
---
---
---
' '
-~ -i
I-
-
...
(
I -
I
-
; ....
I
~
'"
m x :::c
OJ
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 t 08-09 09-10 10-1 1 11-12 12-13 13-14 -I
101 02 •3 05 06 07 •11 1!1i1 13 -+-One Rate l
Revenue Area 99·00 Budget X7&14.xls Chart 1 10:09AM
$180
$160
$140
$120
Q)
Q)
LL $100 -
ca
:J $80 c c -
<(
$60 -
$40 -
$20 -
$0
0212912000
Projected SFR User Fees
... __..
,.#·----~ .. --""· --1 --~ -~ .,., ~
-~ "* ~ ----... --... -~ ..
"" I!
I• II I•
I• I--I---,_ ,_ -I-
,_ -,_ ,_ -,_ ..... 1; --
II
..... -,_ .... -,_ ... -,_
II
·~--~ .....-· -----
---
II ..... --
..... --I•
I'
11
I'
,_ ,_ -
""~ _.....~ --
-...
,_ ...
,_ ,_
,_ ,_
--
..
-
...
m >< :I:
I I I I I co
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 ::::j
101 02 •3 0 5 06 07 •11 •13 -+-One Rate l
Revenue Area 99-00 Budget X7&14.xls Chart 1-1 10:27 AM
03/01/2000 12:33 PM
Annual SFR Sewer User Fees
Already Adopted Fees vs. "One-Rate" Alternatives
Shading Represents Lowest Rate Altemative
Description 1 2 3 5 6 7 11 13
Est Population, 2000 228,965 656,434 749,953 61, 119 111 ,470 169,146 128,774 46,072
Adopted Fees
1999-2000 110.04 76.00 77.00 87.50 80.00 66.00 90 .00 100.00
2000-01 120.77 80.00 78.00 87.50 82.00 73.00 101.25 100.00
2001-02 132.55 82.00 80.00 87.50 84.00 80.00 113.91 100.00
Alt 1 00-01 Fees 120.77 80.00 78.00 87.50 82.00 73.00 101.25 100.00
Alt 2 00-01 Fees 120.77 80.00 78.00 87.50 82.00 73.00 101 .25 100.00
Alt 3 00-01 Fees 120.77 80.00 78.00 87.50 82.00 73.00 101.25 100.00
Alt 4 00-01 Fees 78.00 78.00 78.00 78.00 78.00 73.00 78.00 78.00
Alt 1 01-02 Fees 132.55 82.00 80.00 87.50 84.00 80.00 113.91 100.00
Alt 2 01-02 Fees 132.55 82.00 80.00 87.50 84.00 80.00 113.91 100.00
Alt 3 01-02 Fees 132.55 82.00 80.00 87.50 84.00 80.00 113.91 100.00
Alt 4 01-02 Fees 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00
No Fees Adopted
Alt 1 02-03 Fees 145.47 84.00 82.00 87.50 86.00 87.00 123.00 100.00
Alt 2 02-03 Fees 132.55 82.50 82.50 87.50 84 .00 82.50 113.91 100.00
Alt 3 02-03 Fees 82.50 82.50 82.50 82.50 82.50 82.50 82.50 82.50 m
Alt 4 02-03 Fees 82.50 82.50 82.50 82.50 82.50 82.50 82.50 82.50 >< :::c
OJ
-i
G')
G:\excel.dta\fin\21 O\streed\Black Veatch Survey 2000
03/01/2000 12:45 PM
Orange County Sanitation District
One District Excluding 7 & 14, One Rate Cash Flow Projections
No Adopted
Rates Adopted In 1997 Rate
Proposed Prelimin11ry Preliminary Preliminary Prelimln<1ry Prelimin11ry Preliminary Preliminary Preliminary Preliminary 10Year
&lf Description 1999..00 2000-01 2001-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 Total
Revenues:
General User Fees 57,176,320 58,887,660 60,609,600 62,722,275 64,848,200 66,987,375 69,908,020 73,232,650 76,578,480 80,721,680 671,672,260
2 Permitted User Fees 5,591,000 5,732,000 5,877,000 6,025,000 6,176,000 6,330,000 6,489,000 6,651,000 6,817,000 6,987,000 62,675,000
3 Property Taxes 29,568,000 30,159,000 30,761,000 31,377,000 32,004,000 32,644,000 33,298,000 33,965,000 34,644,000 35,337,000 323,757,000
4 New COP Issues -126,000,000 . 127,000,000 . 100,000,000 . 70,000,000 . 72,000,000 495,000,000
5 Interest Revenues 20,164,000 21,666,000 20,250,000 18,350,000 17,301,000 17,282,000 16,073,000 17,886,000 17,267,000 16,368,000 184,609,000
6 Connection Fees 4,823,000 4,829,000 4,835,000 4,841,000 4,847,000 4,853,000 4,859,000 4,865,000 4,871,000 4,877,000 48,500,000
7 Other Revenues (Incl IRWD) 57,181,000 8640000 3142,000 1,147000 7,196,000 1.155,000 1,159,000 7,208000 1,167,000 1,167,000 89162,000
8 Revenues 174,503,320 255.913660 125,474,600 251 ,462,275 132,372,200 229,251,375 133,786.020 213,809,650 141,344.480 217,467,680 1,875,375 260
Requirements:
9 Oper & Mice Exp 46,048,500 45,735,000 46,818,000 47,905,000 49,000,000 50,094,000 51,192,000 52,293,000 53,398,000 54,507,000 496,990,500
10 Capital Outlays, Incl GWRS 81,270,000 126,088,000 125,618,000 127,774,000 92,433,000 58,474,000 55,231,000 67,062,000 69,623,000 71,913,000 875,466,000
11 cop Service (6.5%, 25 yr) 32,238,000 37,375,000 42,263,000 47,684,000 52,976,000 57,179,000 61,594,000 64,467,000 67,529,000 70,560,000 533,865,000
12 Other Requirements 6,975,000 2,975,000 2,975,000 975,000 975000 975,000 975,000 975,000 975,000 975,000 19,750,000
13 Requirements 166,531.500 212, 173,000 217,674,000 224338000 195,384,000 166,722.000 168,992,000 184,797,000 191,525,000 197,955,000 1,926,091,500
14 Revenues-Requirements 7,971,620 43,740,660 {92,199,400) 27,124,275 (63,011,600) 62,529,375 (35,205,960) 29,012,650 (50, 180,520) 19,502,660 (50,716,240)
Accumulated Funds:
15 Beginning of Year 344,953,000 352,924,820 396,665,480 304,466,060 331,590,355 268,578,555 331,107.930 2.95,901.950 324,914,600 274,734,060 344,953,000
16 End of Year 352i924,820 396,665,480 304,466,060 331 ,590,355 268,578,555 331,107,930 295,901,950 324,914,600 274,734,080 294,236,760 294,236,760
Sewer Service User Fees:
17 Avg SFR Annual User Fee $76.00 $78.00 $80.00 $82.50 $85.00 $87.50 $91.00 $95.00 $99.00 $104.00
18 Percentage Change {3.28%) 2.63% 2.56% 3.13% 3.03% 2.94% 4.00% 4,40% 4.21% 5.05%
19 Equivalent Dwelling Units 752,320 754,970 757,620 760,270 762,920 765,570 768,220 770,870 773,520 776,170
20 SFR Connection Fee $1,820 $1,820 $1,820 $1 ,820 $1,820 $1,820 $1,820 $1,820 $1,820 $1,820
Proj Avg Daily Flow (mgd) 250 245 251 257 263 269 275 281 287 293
COP Coverage Ratios
21 Senior Lien, Min 1.25 6.59 3.61 2.97 2.56 2.56 2.23 2.18 2.34 2.13 2.13
22 Junior Lien, Min 1.00
23 Sr Additional Bonds, 1.25
24 Jr Additional Bonds, 1.00
3.19 1.72 1.38 1.17 1.16 1.00 0.97 1.02 0.93 0.92 m 6.59 3.61 2.97 2.56 2.56 2.23 2.18 2.34 2.13 2.13 >< 5.26 2.38 1.72 1.32 1.29 0,99 0.94 1.04 0.87 0.86 :I:
OJ
=i
:I:
G:\excel.dtaVin\210\99·00 Budget\Revenue Area 99-00 Budget X7&14 One DlstX 7 & 14, one rate
FAHR COMMilTEE
AGENDA REPORT
Orange County Sanitation District
FROM: Gary Streed, Director of Finance
Originator: Steve Kozak,
Meeting Date To Bd. of Dir.
03/08/00
);~Number Item Number ~()I)~~
SUBJECT: STATUS REPORT, RESTRUCTURING OF THE DISTRICT'S EXISTING
CERTIFICATES OF PARTICIPATION
GENERAL MANAGER'S RECOMMENDATION
Receive and file status report.
SUMMARY
In November 1999, the Board of Directors approved a plan to re$tructure and
modernize the District's existing Certificates of Participation (COP) long-term
borrowings. In February, staff presented a status report on the progress being made by
the financing team to develop and implement the COP restructuring and refinancing
plan. This agenda item provides additional details about the refinancing structure and
the legal documents associated with the COP refinancing project.
PROJECT/CONTRACT COST SUMMARY
NIA
BUDGET IMPACT
0 This item has been budgeted. (Line item: ) O This item has been budgeted, but there are insufficient funds. · · D This item has not been budgeted.··
[8J Not applicable (information item)
ADDITIONAL INFORMATION
Introduction
The modernization of the District's existing COP program is based on a comprehensive
refunding and restructuring strategy to realign the COP legal documents to reflect the
District's consolidated organization structure as a single Sanitation District.
Under this approach, the rating agencies would view the District as a single credit
structure, and the District's ability to obtain formal "Aa" category ratings is strengthened.
In addition, streamlining the legal structure for the District's existing COPs will also
facilitate issuance of any future debt.
C:\TI:MPIFAHR COP Update0308001.doc
Revised: 8/20/96 Page 1
Overall, we estimate that present value cost savings of more than $1.4 million would be
generated over the life of the Refunding COPs from a combination of a lower cost
liquidity facility and elimination of annual Letter of Credit fees. Additional savings may
also be realized on future District debt financings.
The following general discussion about COP financing methods is a prelude to the more
specific discussion of the financial plan details and legal documents required for the
restructuring and refinancing of the District's existing COPs.
An Overview of COP Financing Methods
Since the enactment of Proposition 13 in 1978, local agencies in California have relied
on the use of Certificates of Participation (COP) financings to fund basic infrastructure
as well as equipment needs. Because COP obligations are not considered debt for
many statutory or constitutional purposes, they enjoy several legal exemptions upon
issuance and generally do not require voter approval.
Certificates of Participation, or COP, is an umbrella term which includes a variety of
financing structures. The two most important structures include lease COPs and
installment purchase COPs.
Lease COPs: These were developed by cities, counties, and school districts to avoid a
constitutional debt limitation applicable to these entities (but not applicable to the
District). A lease COP financing involves the local agency entering into a lease of a
facilitY or equipment with a not-for-profit corporation which assigns the lease payments
to a bank or trust company which then executes the COPs and delivers them to
investors. The bank or trust company then delivers the purchase price paid by the
investors for the COPs to the local agency to construct the facilities. There is no direct
contract between the local agency and the investors in a lease COP financing.
Lease COPs generally do not achieve as high a rating (or result in a comparable low
interest rate) as revenue bonds or installment purchase COPs because a lease is
required under California law to include the following provisions: (i) the local agency
can elect to terminate the lease at the end of each year ("appropriation risk"), and (ii)
the local agency is not required to make lease payments if the facility financed is never
completed or is destroyed or is rendered unus!=!ble ("abatement risk"). Generally, both
of these provisions add incremental risk for the rating agencies and investors, resulting
in a lower rating and a relatively higher borrowing rate.
Installment Purchase COPs: The second form of COP financing, installment purchase
COPs, is generally used by enterprise districts such as OCSD. Installment purchase
COPs involve the local entity entering into an installment purchase contract with a not-
for-profit corporation, which assigns the right to receive the installment payments to a
bank or a trust company which executes and delivers the COPs to investors. As with
lease COPs, the not-for-profit corporation involved in installment purchase COP
financing is usually created and controlled by the local agency. The bank or trust
company then delivers the purchase price paid by the investors for the COPs to the
local agency to fund or refund its projects.
C:ITEMP\F<!IHR COP UJ>da\80308001.doc
Revised: 8120198 Page 2
The obligation of a local agency to make payments under the installment purchase
contract is irrevocable. Like a revenue bond, the local agency is legally obligated to
make payments under all circumstances. Similar to covenants contained in revenue
bond financings, the installment purchase agreement would typically pledge revenues of
the local agency to repayment, would contain a rate covenant, and would pledge to
issue additional debt only if certain conditions were met.
The strong security provisions in an installment purchase COP will generally result in a
credit rating equal to a revenue bond and interest rates which ar~ the same or only
slightly higher than a revenue bond. Many large water and wastewater agencies
throughout California have used installment purchase COPs to finance their capital
programs. The District's existing COP long-term borrowings were structured as
installment purchase COPs between 1990 and 1993.
Financing Plan and Bond Documents
The District has five series of COPs comprising a total outstanding par amount of
approximately $361 million. The Series "A," "B/' and "C'' COPs were issued between
1990 and 1992 to fund a portion of the "2020 Vision" Master Plan capital improvement
program. The Series 1992 Refunding COPs refunded the 1986 COPs ($107 million)
issued on behalf of District Nos. 1, 2, and 3. The 1992 Refunding COPs also refunded
approximately $38.4 million of the Series "B" COPs, issued in 1991 . Another $39.7
million of the Series "B" COPs was refunded by the 1993 Refunding COPs.
The restructuring plan includes refunding the outstanding Series "A," and "C" daily
variable rate COPs, and the Series "8" fixed rate COP through a single Series 2000
Daily Variable Rate Refunding COP backed by a "Aa" category stand-alone credit rating
of the District (approximately $190 million par amount).
While the Series "A" and "C" COPs were originally issued as daily variable rate
certificates, the Series "B" was issued as a fixed r:ate obligation. In addition, the Series
"8" COPs included a ten-year call protection. Therefore, the proposed Series 2000
Refunding COPs, which will be issued as a daily variable rate borrowing, will be
structured to include an Interest Rate Exchange Agreement ("Swap Agreement") for an
$18.7 million portion associated with the Series "B" COPs.
The Interest Rate Exchange Agreement will synthetically convert (or swap) a daily
variable interest rate on the Series "B" fixed rate portion until their first call date in
August 2001, as required by U.S. Treasury regulations. At that time, the Swap
Agreement will expire, and the Series 0 8" fixed rate portion will convert to daily variable
rate certificates identical to the balance of the Series 2000 Refunding COPs.
This approach simplifies the structuring, documentation, and issuance of the Series
2000 COPs, as the need for two separate pieces in different modes (a variable rate
portion, and a short maturity fixed rate portion) of the Refunding C,OPs is eliminated.
The Series 2000 COPs will be issued as a senior lien obligation, and are expected to
receive a stand-alone "Aa" category credit rating. Therefore, bond insurance or a Letter
of Credit will not be required. As with all variable rate debt obligations, a liquidity facility
C:\TEMPIFAHR COP Update0300001.d0c
Revise<!: 8/20/98 Page 3
would be required. A Standby Bond Purchase Agreement with a liquidity bank will be
used for the Series 2000 COPs.
The Series 2000 COPs will be secured by an Installment Purchase Agreement between
the District and the proposed OCSD Financing Corporation, which will be the not-for-
profit corporation required for the District to issue the Series 2000 COPs. While the
OCSD Financing Corporation, which will be created and controlled by the District, will
have no powers unto itself, it is a basic component of the COP financing method (as
discussed above).
By contrast, the District's existing COPs were issued by agreements among one or
more of the then nine separate County Sanitation Districts of Orange County, with
Sanitation District No. 1 serving as agent. Therefore, there was no need for a not-for-
profit financing corporation for the existing COPs.
Series 1992 and 1993 Refunding COPs
The financing team has initiated work on the proposed plan to substitute modernized
legal documents with the swap providers for the Series 1992 and 1993 Refunding COPs
(AIG for the '92 COPs, and SocGen for the '93 COPs).
Wrth bond counsel as lead, the financing team is researching and analyzing several tax,
insurance, and economic issues which are key to full implementation of the plan to
substitute legal documents. Bond counsel expects to reach some preliminary
conclusions before the end of the month.
Financing Schedule
A detailed financing schedule for issuance of the Series 2000 Refunding COPs is
attached for your Committee's review. The following is a summary of upcoming project
milestones:
• March
• Complete legal documents and POS for Series 2000 COPs
• Solicit liquidity facility providers
• Finalize plans for Series 92 and 93 Refunding COPs
• Finalize rating agency presentation materials
• April
• Select liquidity facility provider
• Rating agency presentations
• FAHR and Board approve formation of OCSD Financing Corporation
• May
• Receive District ••Aa" stand-alone credit rating
• FAHR and Board approve legal documents
• Mail Official Statements
• June
• Price and market securities
• Close Series 2000 Refunding COPs
C:\TEMPIFAHR COP Updele0006001.doo
Revised: 8/20/9B Page4
ALTERNATIVES
NIA
CEQA FINDINGS
NIA
ATTACHMENTS
1. Financing Schedule
C:llEMPIFAHR COP Updale0308001.doc
Revised~ B/20/98 Pages
ORANGE COUNTY SANITATION DISTRICT
Series 2000 Refunding COPs
Financing Schedule
JANUARY FEBRlJAR\·
s M T w T F s s M T WT F s s
l 1 2 3 4 5
2 3 4 5 6 7 8 6 7 8 9 10 11 12 5
9 10 11 12 13 14 15 13 14 15 16 17 18 19 12
16 17 18 19 20 21 22 20 21 22 23 24 25 26 19
23 24 25 26 27 28 29 27 28 29 26
30 31
APRIL !\IA y
s M T w T F s s M T w T
1 1 2 3 4
2 3 4 5 6 7 8 7 8 9 10 11
9 IO 11 12 13 14 15 14 15 16 17 18
16 17 18 19 20 21 22 21 22 23 24 25
23 24 25 26 27 28 29 28 29 30 31
30
Date Activity
• 1st draft of Installment Ptirchase Agreement distributed Jan14 x
Jqn20 x Kick-off meeting to discuss legal strutture
Feb3 x Review 1st draft of ratings presentation and revised casltflows
(9:00 a.m. at District)
Feb. 9 x F AHR Committee meeting (5 :00 p.m.)
x Financing progress report
Feb JO x 1st draft of P.O.S. distributed
Feb 14 x I 51 draft of Trust Agreement distributed
Feb 17 x Meeting to review legal documents and P.0.S.
(10:00 a.m. at OH&S)
Feb21 x Market Holiday (President's Day)
Week o/316 . Conference call to review ratings presentation & cashflows
Mar8 • FAHR Committee meeting (5:00 p.m.)
• Financing progress report
Mar9 • 2nd draft of legal documents distributed
• 2nd draft of P.O.S distributed
Paine Webber
March 1, 2000
M T w T F s
1 2 3 4
6 7 8 9 10 11
13 14 15 16 17 18
20 21 22 23 24 25
27 28 29 30 31
F s
5 6
12 13
19 20
26 27
Responsibility
BC
All-Hands
OCSD,PW
OCSD
OCSD,PW
UC
BC
AU-Hands
OCSD,PW
OCSD
OCSD,PW
BC
UC
March 1, 2000
Mar14 • Meeting to review legal documents and P.O.S. All-Hands
(10:00 a.m. at OH&S)
Mar16 • Meeting to review draft rating agency presentation OCSD,PW
(as needed)
Week of 3120 • Review proposed legal structure with rating analysts PW
• Commence discussiens with Ambac and swap providers PW,BC
• Begin preparing paclrnge for liquidity banks PW
• Continue revising rating agency presentation OCSD,PW
• Rating agency facilities tour (ifrequested) OCSD, PW
Mar 22 • District Board meeting OCSD, PW
Mar23 • 3rd draft of legal documents distributed BC
• 3•d draft of P.O.S distributed UC
• Distribute documents to rating agencies BC,UC
• Distribute liquidity facility bid package PW
Mar28 • Meeting to review legal documents andP.O.S. All-Hands
Weekof4/3 • Finalize rating agency presentation OCSD,PW
Apr 11 • Rehearsal for rating agency presentations (tentative) OCSD,PW
Apr12 • FAHR Committee meeting (5:00 p.m.) OCSD
• Approval of non-profit Financing Corporation OCSD, BC
• Financing progress report OCSD,PW
Apr 13114 • Rating agency presentations (tentative dates) OCSD,PW
Apr21 • Market Holiday (Good Friday)
Apr26 • District Board meeting OCSD
• Approval of non-profit Financing Corporation OCSD,BC
May3 • Receipt of ratings OCSD, PW
May 10 • FAHR Committee meeting (5:00 p.m.) OCSD
• Approval of bond documents OCSD,BC,PW
May24 • District Board I Financing Corporation meetings OCSD
• Approval of bond documents OCSD,BC,PW
May25 • Print Official Statement UC,PW
• Begin pre-marketing COPs PW
May26 • Mail Official Statement OCSD,PW
May29 • Market Holiday (Memorial Day)
Paine Webber
• March I, 2000
May30 • Price advance refunding of Series B OCSD,PW
(Establish fixed rate through August 2001)
June 13 • Price current refunding of Series A & C OCSD,PW
(Daily VRDOs, Sold no less than 15 days after Series B)
June 14 • Close all refunding components All-Hands
811101 • Series B COPs called with escr-0w funds
X -Denotes completed activity.
Key Role Participants
ocso Issuer Orange County Sanitation District
BC Bond Counsel Orrick, Herrington & Sutclitfe
PW Underwriter Paine Webber Incorporated
UC Underwriter's Counsel Hawkins, Delafield & Wood
Paine Webber
\
r
J
' )
J
J
Callan Associates Inc.
Investment Measurement Service
Quarterly Review
Orange County Sanitation District
December 31, 1999
The fo llowing statistical analysis was prepared by Callan Associates fuc. utili zing secondary data from
statements provided by the plan trustee and/or custodian, CAI computer software and selected
infonnation in CAC's database. This report may also contai n returns and valuations from outside
so urces as directed by che client. CAI ass umes no res ponsibility for the accuracy of these valuations or
return methodologies. Reasonable care has been taken to ass ure the accuracy of the CAI compuler
software and dacabase. CAI di sclaims responsibility, financial or otherwise for the accuracy or
completeness of this report. Copyright 2000 by Callan Associates Inc.
1
t
l
\
l
J
Capital Markets Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . 1
Active Management Overview
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Domestic Fixed-Income ..................................................... 10
Asset Class Risk and Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 I
Investment Manager Asset Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Investment Manager Returns ................................................. 13
Manager Analysis
PIM CO-Liquid Operating Monies ............................................. 14
PIMCO-Liquid Operating Fund ........................................... , .. 15
Bond Portfolio Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Portfolio Characteristics Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
A Brave New Economy?
As the new year unfolds, the economy will likely move
into its I Qlh year of expansion. Is this record expansion re-
ally the result of a "new" economy? Despite yearnings for
a brave new world, there are few indicators that the U.S. l economy has changed in any dramatic or fundamental way.
( SIW JHl[Jt: J ., )
Technology Keeps Going ... and Going ...
WhHe a stronger-than-expected economy sapped the com-
peting bond market's strength, broad U.S. equities gained
16.83% in the quarter. Technology-related stocks, which
bulldozed ahead 39.41 %, supplied much of this market's
juice. Without Technology, equities gained about 8.5%.
(see f)(tfJ<' .:! )
U.S. Treasuries Under Pressure Again
U.S. Treasuries fell for the fourth consecutive quarter, as a
strong economy and low unemployment prompted the Fed
to raise rates again. The long end suffered the most. Spread
products generally fared better, particularly in the high yield
sector. Overall, the broad fixed-income market was flat.
(.~ee payi.; 4)
The Real Estate Corner
NAREIT watchers continued to wonder where the bottom
of the public REIT market was, as the REIT index fell an-
other 1.76% last quarter. For the year, NAREIT lost about
6.5%. However, the private real estate market gained al-
most 11 % in 1999, based on Callan's preliminary data.
( :;ee (W!JC f) J
Foreign Stocks Show the Money
Both Europe and Pacific equities handsomely rewarded
faithful investors. MSCI EAFE gained 16.98%. Driven by
renewed economic growth and increasing M&A activity,
Europe advanced 17.39% during the quarter.A rising yen
and additional government stimulus helped to push Japan
equities ahead 15.51 %. r.•we ]Ulf)t; (j)
BondsAbroadWobble as Euro Sinks
Euroland bonds sank 6% in dollar terms during the quar-
ter, as a despondent euro lost ground. Meanwhile, the ris-
ing yen rescued unhedged investors from anemic local
gains in Japan. Overall, bonds in developed markets slipped
1.58%. Bolstered by waning Y2K concerns, emerging
market bonds finished the year strong lsr.o:r p11!JH 8 )
Alternative Thoughts
The fourth quarter yielded an unprecedented $45 billion
in new private equity commitments, driving 1999 to a new
funding record of over $95 billion. Venture capital cap-
tured the lion's share of new commitments, as fund par-
ticipants reinvest proceeds generated from sizzling IPO
markets. ('iC't! fltl!JI~ I 0)
All Things Considered
Except for Taft-Harley plans, the median institutional in-
vestor harvested double-digit gains last quarter, based on
Callan estimates. Supported by typically he~vy domestic
and international equity exposures, corporate plan spon-
sors led the group with a median 10.49% gain.
(S<'I! /Hl.<JC: J 2)
Broad Market Returns -Fourth Quarter 1999
20%
15%
10%
"' ~ "' ~If',-
Or.t
U.S. Equity Non-U.S.Equil)I
(C~ll'1ll Broad Markell (MSCr EAFE)
-O.f2%
U.S. FiJ<ed
(L.B Aggregate)
Non-ll.S. Fix~tl
(SSB Non-U.S.)
2.97%
Rcnl Esrnu:
(CallM Real Estate)
Cash
l90-0~y T-!lil.ls)
u \II I ltt'l. \
I " 1 1
.. [1 1 t.1 .. 1
., . I\ I' ,,
\ ii (I I; \I I 1 111,
Technology Keeps Going ••. and
Going ••• and Going
Like the Energizer bunny, technology drove the stock market crazy
with its relentless pace of evolution last quarter. Its celebrated ben-
efits of increasing productivity and lowering costs in the economy
empowered U.S. stocks, particularly small ones, to march ahead
boldly through the quarter's sinister scene of rising interest rates.
Despite solid productivity gains rolling over inflation concerns, a
stronger-than-expected economy sapped the competing bond mar-
ket, pushing long-tenn Treasury yields up 0.44% and forcing the Fed
to increase its funds rate again. Nevertheless, with consumer confi-
dence reaching 31-year highs during the quarter, equity investors fear-
lessl y plowed through the hurdles of higher implied discount rates.
For the faithful, earnings would keep growing ... and growing. The
Callan Broad Ma rket Index of the 2,000 largest U .S.-traded stocks,
excluding AD Rs and other foreign shares, advanced 16.83%, includ-
ing dividends, in the quarter.
Technology-related stocks supplied much of this market's juice last
quarter. Mesmerizing investors with the allure of faster earnings
growth, the Broad Market's Technology sector bulldozed ahead
39.41 %1 Its index weight grew from 25% to 30% over the quarter.
Leading the charge was Qualcomm Inc. (+272.38%). For the full
year, Technology gained 81.17%.
Even without Technology, the Broad Market's remaining ten eco-
nomic sectors gained roughly 8.5% in the last quarter. Drumming up
support from seemingly unstoppable consumer spending, Consumer
Cyclicals gained 17.74%. Home Depot (+50.39%) and Wal-Mart
( +45.45%) made signHicant contributions to this sector's move.
The quarter's rising interest rates, however, drained strength from
the slow-growth sector. Public Utilities (-4.90% ). Its electric power
industry (-7 .28%) particularly faded, as it continued to struggle with
deregulation and higher fuel costs. Even though crude oil futures
neatly hit nine-year highs in the quarter, the Energy sector only man-
aged to draw a meager 0.60% gain.
Although industry exposure was the quarter's critical factor affect-
ing performance, capitalization was still important. The best show-
ing came from the Broad Market's bottom 1,500 stocks in the Callan
Small Cap Index ( +24.48% ). While the market's largest 150 stocks
in the Callan Large Cap Index (+16.93%) closely matched the to-
tal market return, the next 350 stocks in the Callan Medium Cap
Index (+9.87%) lagged.
Given Technology's strong performance, Callan's growth style in-
dexes dominated perfonnance in the quarter. To isolate value and
growth styles, Callan divides its capitalization indices evenly by price-
to-book, creating sub-sectors of growth-and value-oriented stocks.
In the last quarter, the Callan Large/Medium Cap Growth Index
(+19.91%) easily scampered past fue Large/Medium Cap Value
I ndex(+ 10.63%). In the race of smaller contestants, the Callan Small
Cap Growth Index ( +43.45%) clobbered its Value Index counter-
part (+3.54%).
CAPITAL JIARKETr,,,...,.
Callan Style Group Ret urns
Fourth Quarter 1999
7,,.. -----------------~
~
lCn •
~
·~ (J'l l-------1-----+------+-·:::~-;:;:::.~
.1ur.; ,,__ ___ ---1. ____ _.__ ___ ___,_ ___ ___,
Large Cap-Gr.,..1h S1yk Urr< s<i;F.'v.iuee Sn1.1ll C>p-Cr°""tl> S1yl< Sm>ll C>p·V>lU< S1yl<
1<1111 Pett'<n\ilc ~J.18 I0.96 S6.11 10.?9
°?SUI Pe<tenlilt 21.80 7,80 4990 891
Mtdllf1 ~Z.70 ,1.47 39.20 4.)l
75th rcrccn1Uc ·~-~9 l.9S 25.06 1.20
90Ch Ptr«n1ilc: l•.15 1.07 17.66 -0.71
S&PG!0>\1h So!:PValue Russdl 1000 Omw1h llu1sell 2000 VJlu<
De11<hm:11kJ • 19.74 i .97 .l:l.39
Capit alization Sector Performance
Fourth Q uarter 1999
l.S3
'"'-==~==:::::?:;::=::i===i::~~ 14~~
:2~ l------1
~~t---L........:........:........:......,..J----t----+l~l l----1----+----+----l-e w1 ~ 11·, j 1:~
;? l«l· ..,
"" n
!~ ,,..
°" 2000 40!' ~
l"ctT«!t of 'Yolal ;\tiil'krt Orph,g,llmdon
Economic Se cto r Performance -Ca llan Broad Market
Fourth Quarter 1999
T'r<.h•)l."'•'r.-'
c~..-utlnll'r C.)'irikil
C.·f"ii .. 1C.-.llh
t'1'1MlllW'fiwpl...,
fin.ei+cbl'
MtiW1Cire
"'na11Af'\>n.Atll)t1
'F..nt~
11.,,-;:
IO,IYJ.
Vlili!iu ,.:4.:;;.~:....·.;=~-+---+--+--+--.---+--+-----<
-It"< ·'ll VI" Y> l!'.l ll'I 11>1> ll'~ >~ )Y,t 'Ir. ·~
Ri:ti.m
Rolling One-Year Relative Returns vs. S&P 500
i .... t )'!. i ~ 1.L-4--.'-:..L--....;:..1.-.u,..__,l'---~-..,.__......__--I
3 ~ .;l',l. j .,,,
"'
Ill!
at• tll tl u If tf ..... , •t ... 'It 'J1 '"J \ti .... S'J • '11 ...._ ~·
l
U.S. EQUITY
Style Median and Index Returns* for Periods ended December 31, 1999
Last Last Last8 Last5 Last 10 Last 15
Quarter Year Year Years Years Years
I ;'
Large Cap-Broad Style 14.41 20.16 26.02 26.78 17.66 18.31
Large Cap-Growth Style 22.70 30.19 33.52 31.00 19.78 20.15
Large Cap-Value Style 4.47 5.78 15.83 20.71 15.21 16.68
Aggressive Growth Style 40.55 60.01 33.42 30.56 21.70 22.88
Ccmtrarian Style 1.93 7.51 15.08 19.42 14.82 15.78
Core Style 14.76 21.14 26.65 27.96 18.25 18.46
Yield Style 1.95 0.91 14.87 19.58 14.28 16.33
CAI Broad Market Index 16.83 22.74 26.20 27.23 17.64 18.17
CAI Large Cap Index 16.93 24.39 31.73 31.82 19.32 19.55
S&P 500 14.88 21.04 27.56 28.56 18.21 18.92
NYSE 10.16 10.92 20.42 23.45 15.72 16.87
Dow Jones Industrials 11.59 27.17 23.34 27.04 18.38 19.67
I•
Mid Cap-Broad Style 23.52 19.38 19.46 23.70 18.63 17.96
Mid Cap-Growth Style 42.71 61.09 29.75 28.98 21.42 20.09
Mid Cap-Value Style 4.20 2.52 13.56 17.37 14.60 16.J 1
CAI Medium Cap Index 9.87 8.84 17.09 20.56 14.83 16.35
S&P MidCap 400 17.19 14.73 21.81 23.05 17.32 18.34
I II I 11
Small Cap-Broad Style 17.10 16.51 13.60 19.58 16.73 17.07
Small Cap-Growth Style 39.20 51.36 21.03 22.89 20.44 19.89
Small Cap-Value Style 4.31 4.05 10.39 15.05 14.02 15.37
CAI Small Cap Index 24.48 33.87 19.48 21.34 15.81 16.12
CAI Micro Cap Index 15.10 24.36 13.19 19.06 14.44 13.36
S&P 600 Small Cap Index 12.46 12.40 11.69 17.04 13.04 12.00
Russell 2000 18.44 21.26 13.08 16.70 13.40 13.23
NASDAQ 48.26 86.10 47.14 40.84 25.67 21.92
Basic Materials 9.92 19.89 6.33 10.31 9.28 13.01
Capital Goods 11.59 26.17 20.64 24.75 15.28 16.95
Communications 14.32 24.51 37.86
Consumer Cyclical 17.74 18.91 25.68 21.87 15.60 17.15
Consumer Staples 10.15 -1.75 15.84 21.51 16.22 20.39
Energy 0.60 19.31 11.90 18.38 11.32 14.10
Financials 8.09 1.56 18.66 28.03 18.53 17.62
Health Sector 5.26 -5.01 22.27
Utilities -4.90 -8.70 8.65 13.51 9.24 13.37
Technology 39.41 81.17 53.59 46.47 28.88 20.68
Transportation 2.48 -4.15 6.02 13.64 10.64 12.46
U.S. Equity Index Characteristics as of December 31, 1999
Callan Callan Callan Callan Callan S&P
Broad Large Medium Small Micro ,500
Cap Range•• ($MM) 431-604,078 17 ,608-604,078 4,494-17,513 431-4,465 94-430 361-604,078
#Issues 2,000 150 350 1,500 1,000 500
% of Callan Broad 100% 67% 18% 15% NIA NIA
Wtd Avg Mkt Cap $J20.9B $174.7B $11.5B $6.5B $0.6B $142.5B
Price/Book Ratio 10.6 11.9 7.5 8.5 6.2 10.6
PIE Ratio (forecasted) 33.9 37.0 25.3 26.2 21.2 34.5
Dividend Yield l.1% 1.0% 1.4% 0.8% 0.7% 1.1%
5-Yr Earnings (forecasted) 18.5% 17.9% 17.5% 22.5% 20.8% 17.7%
• Returns less than one year are nor annualized. .. As reconstituted for 2000.
CAPITAL MARKET.m.v /(mrth (/llOrL~·r T1>9fJ
U.S. Treasuries Under Pressure Again
The fourth quarter continued the disappointing trend for the U.S.
bond market in 1999. Prices on most bonds fell, sending their yields
-which move in the opposite direction -higher. Despite the notable
absence of inflation during the quarter, the Fed raised the Federal
Funds rate 25 basis points to 5.5%. The move was seen as a "pre-
emptive strike" against the risk of future inflation. Continued eco-
nomic growth and low unemployment acted as the Fed's ammunition
for their action. This most recent hike by the Fed brought its tighten-
ing moves to an annual total of75 basis points.
This environment proved particularly difficult for Treasuries, as the
U.S. Treasuries fell for the fourth consecutive quarter. The 30-year
bond yield closed at 6.48%, up from last year's close of 5.12%.
In addition to inflation fears hurting fixed-coupon Treasuries, rising
real rates to fund the fast-paced economy also added to the credit
market's pain. This additional strain showed up in the markets for
the inflation-protected Treasurys, or TIPS. Though insulated from
the ills of rising inflation, the Lehman Brothers TIPS Index yielded
a 0.0% return in the quarter, as the real yields rose from 4.04% to
4.25%.
On a positive note, spread products fared better than their Treasury
counterparts, with all spread sectors outpacing Treasuries. The mod-
est gains in both the Lehman Brothers Mortgage Index ( +0.38%)
and the Lehman Brothers Corporate Index (+0.03%) were not
enough to keep the Lehman Brothers Aggregate Index (-0.12%)
from finishing the quarter in the red.
The high yield sector was the top dog for domestic fixed income in
the fourth quarter with the Merrill Lynch High Yield Master Index
up 1.08%. Historically, high yield bonds have outperformed invest-
ment grade bonds during periods of rising interest rates. Strong mu-
tual fund and CBO-driven buying, dwindling street inventories and a
limited new issue calendar provided further support to the high yield
markets,
The long end of the curve suffered most of the pain, as evidenced by
the decline in the Lehman Brothers Long Government/Corporate
Index (-1.50%) versus a gain in the Lehman Brothers Intermedi·
ate Govern ment/Corporate Index (+0.05%).
Although the equity markets continued a feverish pace, the broad
credit markets experienced anemic results, suffering its toughest year
since 1994, and the second worst on record. Investor concerns of an
overheating economy and re-surging inflation will likely continue to
plague the fixed-income markets in the new year.
Callan Style Group Returns
Fourth Quarter r 999 ... ..------.------.,.----.-----.,
--~1 1-----....-"'---4--i:~.;;;;;;;;.-+-----l-----I
... ~
ID~Ttnedl'tt Corr D1>ua E..<otndcd M"""'>' HlJh YlcrJ Si)·I< S11k Sty~ Sly!<
t~Pc-tttt1lUc o.H O.?l ·-0.:!7 .., 41
!Sib rt1c:ca.dJe O:J' 0.1!. .0.88 J.11 ~kdilD 0.16 .o.~ 1.40 l.lS
?Slh Ptu!'!t1tilr 0.0$ ...().ll ·'.l.30 '67 '90lh rtrmuHc -4.0S ·O.Jl J.)l O.ISJ
~ "' ~
~
8tn<hmolt•
J.IJ"
O.Sw
O.OI}
•11~
LB OoviCOf{> fntet L8CW'(QpB4 LS Bc»•Corp Looc • OJIS -4.<t .1,,0
Secto r Performance
Fourth Quarter 1999
LB Univorsal lnd~x -0.38%
LB Aggrr~•ue lnilo• --0.1'2'.C.
LB Gov Bd OJ!l._
LB Col\) HlJ~ Yield 1.6l
LBCorpBd LB Corp High LB Mr~ Backe<!
Yield Sec
-0.6311
U.S.TreasuryYield Curves
1.0 Fourth Q uarter 1999
6.5
6.0 L---------------· ... -----
~ 5.5
>
r .--End 4th Qu~ner 199!1
f -• -llegiwin~ 4111 Qll.llTcr 1999 f -... .,. ·· End ol!h Q11~ner 1998
::: -~··-··•··········&-········"··----···········-·······-········-·
4.0 ______ ,__ _ __,,__ _______ _
0 10 JS 20 Maturity (Years) 2S 30
Effective Yield Spread over LB Treasury Index
LB CollJOt<lC Hl,&n Yi<ld
-LB Corp Bao Bonds
-LB Corp A Bonds
-LBC01pA&>llonds
--~--
"' ..
t:APffAL llAilKETrmnr fi>111 I ft <11wrtn I !J.f)f)
l
U.S. FIXED INCOME
Style Median and Index Returns* for Periods ended December 31, 1999
Last Last Last8 Last5 LastlO
Quarter Year Year Years Years
I• r. ' [I 'I I
Active Duration Style -0.34 -2.11 5.59 7.52 7.82
Core Bond Sryle -0.03 -0.86 5.84 7.84 7.98
LB Aggregate -0.12 -0.82 5.73 7.73 7.70
LB Govt/Corp -0.41 -2.15 5.54 7.60 7.65
LB Govt -0.63 -2.24 5.58 7.44 7.48
LB Corp O.Q3 -1.96 5.48 8.18 8.21
SSB Broad Investment Grade -0.16 -0.83 5.73 7.74 7.75
E:ctended Maturity Style -1.40 -6.96 6.10 9.43 9.04
LB Gov/Corp Long -1.50 -7.66 5.73 8.99 8.65
LB Gov Long -2.07 -8.73 5.88 9.03 8.58
LB Corp Long -0.47 -5.78 5.24 8.79 8.68
SSB High Grade -0.79 -7.45 5.00 8.35 8.36
" '
Intermediate Style 0.16 0.69 5.65 7.21 7.51
LB Gov/Corp Intermediate 0.05 0.38 5.50 7.10 7.26
LB Gov lntennediate -0.05 0.49 5.50 6.93 7.10
LB Corp Intermediate 0.27 0.16 5.53 7.77 7.88 .
Defensive Style 0.84 3.51 5.75 6.67 6.98
Actfre Cash Style 1.33 4.94 5.68 6.01 6.01
Money Market Funds (net nf fees) 1.24 4.64 4.92 5.06 4.85
ML Treasury I-3Year 0.60 3.06 5.55 6.51 6.59
90-day Treasury Bills J.25 4.85 5.14 5.27 5.11
High Yield Style 2.35 4.53 7.49 10.95 12.31
LB Corp High Yield 1.63 2.39 5.56 9.31 10.71
CSFB High Yield 2.08 3.29 5.37 9.07 11.06
ML High Yield Master J.08 1.57 5.91 9.60 10.79
' . I I
Mortgages Style 0.29 1.74 6.19 8.16 8.18
LB Mortgage-Backed Securities 0.38 1.86 6.06 7.99 7.77
LB Asset-Backed Securities 0.27 1.81 5.62 7.02
U.S. Fixed-Income Index Characteristics as of December 31, 1999
Lehman Brothers Indices
LB Aggregate
LB Govt/Corp
Intermediate
Long Term
LB Govt
LB Corp
LB Mortgage
LB Asset-Backed Securities
LBCMBS
LB Corp High Yield
Yield Modified Adj. Average % of
To Worst Duration Maturity LB G/C
7.16 % 4.92 8.86 Yrs. 100.00 %
6.96 5.30 9.69 100.00
6.83 3.43 4.33 70.97
7.28 9.87 22.79 29.03
6.58 5.12 8.72 65.98
7.70 5.66 11.56 34.02
7.51 4.27 7.60
7.21 3.07 3.82
7.52 5.33 7.11
11.54 4.69 7.95
* Rerums less lhan one year nrc nor annualized.
/f>un Ii q1111r1 . .-1 J!){)l)
%of
L'B Aggregate
100.00%
63.07
44.76
18.31
41.61
21.45
34.16
1.34
1.43
Last 15
Years
9.44
9.48
9.22
9.09
8.85
9.80
9.27
10.91
10.74
10.87
10.57
10.49
8.79
8.41
8.26
8.99
8.03
6.86
7.51
5.81
I 1.91
11.12
11.35
11.33
9.81
9.54
l
Fore ign Stocks Show t he Money
The stellar returns in global equity markets in the fourth quarter topped
off what turned out to be an outstanding year for international equity
investments. The MSCI EAFE Index pulled ahead of the S&P 500
by 210 basis points with a gain of 16.98%. All markets in EAFE had
positive returns in both dollar and local currency terms. For the quar-
ter, the best performing market was Finland ( +89.20%) and the worst
was Ireland (+0.37%). For the year Finland, led by a surging Nokia,
rose an astounding 152.60%.
Europe
Driven by renewed economic growth and increasing merger and ac-
quisition activity, Europe took the lead during the quarter with the
MSCI Europe Index rising 17 .39% ( +23.20% in local currency). The
euro reached a low for the year of 1,001 on December 2 and Jost
5.88% over the quarter. Overall, the euro lost 14.64% for the year,
detracting from returns for U.S.-based investors. The Information
Technology and Telecommunication Services sectors led their more
cyclical counterparts in the fourth quarter, with gains of 29 .08% and
21.60%, respectively. These growth-oriented sectors also led the year
with returns of 113.86% and 62.88%. In contrast to the third quarter,
growth stocks outperformed value. The MSCI Europe Growth index
posted gains of 25.89% compared to 9.57% for value.
Showing signs of renewed economic strength, France and Germany
returned 21.44% and 26.89% respectively. The MSC! United King-
dom Index gained 10.14%, even with the sterling losing 2% against
the dollar.
Pacific Basin
While returns in Europe led the Pacific in the fourth quarter, the Pa-
cific carried the year. The MSCI Pacific Index for the quarter and
year was up l 6.14% and 57.64%, respectively. The Japanese govern-
ment announced yet another economic stimulus package that would,
among other things, provide loans to small and mid-size firms. Japan
rose 15.51 % during the quarter on the back of a strong Japanese yen.
The yen gained 4% during the quarter and 10.2% for the year. Growth
stocks in Japan continue to outperform value, returning 25.19% ver-
sus 5.49%; NITDoCoMo was a particular standout.
Talk of China's entry into the World Trade Organization fueled opti-
mism in the region. Hong Kong, aided by news of a rise in third
quarter GDP, jumped 29.42%. Singapore also posted strong perfor-
mance (+25.09%).
Emerging Markets
The MSCI Emerging Markets Free Index gain of 25.44% for the
quarter brought the 1999 return to an amazing 66.42%. Strong per-
formances in Brazil (+58.87%) and Mexico (+37.03%) drove the
MSCI Latin Index to a rise of 33.28%. ln the Asian markets, returns
varied from a 16.61 % loss fo the China Free index to a 41.28% gain
in the Indonesia Free. The EMF Asia and Europe & Middle East
components returned 18.08% and 31.17%, respectively.
Callan Style Group Returns
Fourth Quarter 1999 ·~·~~~~~~~~~~~~~~~~~
JD« --
Glob>IE<)ulty
St)'!< N""·U.S. ~ulty f.m<tti_n1 M•~« S1ylt f.t!O~
lolh P<r<c~olt ~ 1.~J J?.U 4511 ?5th Ptrcem1I~ 2~.73 25.JO )!llS
Medi.t1t I 6.~.4 i1l7 32.5i
?Sth PtJt..~otlJe. 9.67 111) 1~50 901h Pttcc nUI~ $..$? 9.11 21.91
MSOWodd
tknthm.J:rks a J6.a7 MSCI EAFE MSO l!m<>; M•.U" r.,.. 16.91 ZS.-1<
30.D!>
25.0'Y
15.0';.
10.()',\
O.<Y'i
Regional Performance {based on US$)
Fo urth Quarter 1999
MSCIACWI Fre~(<• US)-18.16-:1-
MSCI EAFE -16.98%
MSCI l!uropc MSCI Jap.111 MSCI !'Jc Ex·Jp11 MSCJ E~rg
Marl«t.s Fro<>
Ro lling One-Year Relative Returns vs. MSCI EAFE US$
; J(I•;
~ 4!1Y~
~'or. ~ (I'<.
~ ~ ;w ...
b ~ ::w1r
" :i .)l.\'l :.
:I: ·~Wt
MSC! Pacific
-MSCI Europe
-MSCI E1\FE
-l<l'l 1.......---==========---------'
"' "
Major Currencies vs. US$
C umulative Returns Over Last 25 Years
l«>< ,.--~~~~~~~~~~~~~~~~~-.
-lapAncscYrn
Gtrmnrl M'1rkll'uro
.11~1. -UK Sc-:rllng
100'1
,,..
tf\f; '--------------------'
/n11/'/ It <11111rl<'r f.C).<).') t 111/w1 b.~od111c·~ 111«. (;
1
}
j
INTERNATIONAL EQUITY
Style Median and Index Returns* for Periods ended December 31, 1999
Last Last Last 8 Last5 Last 10
Quarter Year Year Years ]'ears
Global S1y/e 16.84 30.67 19.11 19.0/ IJ.08
No11-U.S. Style 23.37 35.40 18.99 16.77 11.lM
Core Style 20.34 32.86 18.48 15.80 10.90
Top Down Sry/e 18.06 32.02 19.52 15.82 11.09
Bottom Up Style 20.86 33.15 18.25 16.66 12.08
Small Cap Srylc 19.07 49.66 12.69 10.89 9.69
MSCI EAFE-Unhedged 16.98 26.96 15.75 12.83 7.02
MSC! EAFE-Local 19.34 33.46 19.37 15.70 6.50
MSCl Wodd-Unhedged 16.87 24.94 21.60 19.76 11 .42
MSC! World-Local 17.95 27.68 23.56 21.3 l 11.01
MSC! AC World Free ex U.S.-Unhedged 18.16 30.91 15.20 12.39 7.30
MSCI AC World Free-Unhedged 17.35 26.80 21.16 19.19 11.71 ...
Pacific Basin Styli! 22.93 76.04 9.89 6.59 6.76
Japan St_vle 16.20 84.77 16.85 6.24 4.96
Pacific Rim Style 30.90 66.90 -1.46 4.71 IJ.73
MSCI Pacific-Unhedged 16.14 57.64 6.37 2.49 0.30
MSCI Pacific-Local 12.30 44.56 3.90 3.37 -2.34
MSCI Japan-Unhedged 15-51 61.53 9.00 1.96 -0.85
MSCI Japan-Local 11.04 46.57 4.53 2.48 -4.17
'I :1, 'I
Europe Style 20.62 21.40 23.38 23.70 15.50
MSCI Europe-Unhedged 17.39 15.90 22.62 22.12 14.04
MSCI Europe-Local 23.20 29.92 29.90 25.38 15.41
, 1· ' I
E111agi11g Marker.~ Database 32.53 72.0/ 6.69 6.17 15.12
MSCI Emerging Market Free 25.44 66.42 3.18 2.00 11.04
• Rctums less lhnn one y~:ir :1re not :umualiz.cd.
Return Attribution for EAFE Countries Country Weights -EAFE
As of Dece mber 3 I, 1999 Fourth Quarter 1999
Country (by wti.l(ltt) Total Local
Japan 15.51~ I 1.04<,I:
United Ki.ngdom 10.14 12.54
Gean:111y 26.89 34.82
Fr:mce 21.44 29.02
Switzerland 3.18 10.06
Nethulands 12.50 19.52
h~ly 13.61 20.71
Spain 16.18 23.43
Australia 8.65 8.36
Honk Kong 29.42 29.51
Sweden 46.24 52.40
Finl:ind 89.20 101.02
Belgium 3.29 9.74
Singapore 25.()<) 22.55
Denmark 10.92 17.97
Portugal 13.56 20.65
Ireland 0.37 6.64
Norway 7.65 11.61
Austria 1.04 7.35
New Zeal:ind 13.55 12.44
Currency
4.03>'c
·2.13
-5.88
-5.88
-6.25
-5.87
-5.88
-5.87
0.27
-0.07
-4.04
-5.88
-5.88
2.07
-5.98
-5.88
-5.88
-3.55
·5.88
0.99
Jl;cw Zc•land 0.1
AustriaO.'?"'.i
NorwayOA'if
lrcland0.4~ Ponu~.110.5'1''-"~
Dcnm;ul< 0.S'k' ~ Belgium 0,91<
Singapore 1.14 -
Hong Kong 2..31f-
Austr.ili> 2.5'k
Sweden 2.7'i<
Spain 2.?'i<
Finlond 3.0'<
J 111n/I 11111111"' ffl'J•J
Jopm
27.411i
France 10.31<
Last 15
Years
17.I 1
18.18
18.15
18.18
18.56
15.95
11.97
16.46
14.30
15.62
17.99
17.68
11.84
7.04
11.56
5.08
22.61
19.66
16.85
UK
19.2<:<
Bonds Abroad Wobble as Euro Sinks
In dollar terms, the Salomon Non-U.S. Government Bond Index
suffered a tough quarter (-1.58%) in a tough year (-5.07% ). In fact,
for unhedged investors, 1999 provided the worst calendar year per-
formance since the index inception in 1985. ln local terms, the index
was nearly flat for both the quarter and the year.
Europe
Europe lost ground over the quarter, as the European Government
Bond Index fell 0.15% and finished 1999 off 2.57% in local terms.
Dollar investors suffered from the continued tumble of the euro, which
lost 5.88% in the fourth quarter and a whopping 14.64% on the year.
japan
Thankfully some good news here. Although the government an-
nounced plans to issue an unexpectedly large number of bonds next
year, its intervention through other means produced a 0.40% local
gain for the fourth quarter and a healthy 4.83% return on the year.
Dollar investors were rewarded with a strengthening yen, as Japa-
nese bonds rose 4.44% and 15.53% for the quarter and year, respec-
tively, in dollar terms.
Callan Style Group Returns
Fourth Q uarter 1999
lh'r----------r-----------,
~.,>-c
fl.tY~ '---
.(!.~~~
• --•
40~'---------L----------l
IOl)J t'trtLn11lt
Htb Pcr.:t"utHc
Med.ho 7!'1h Pt:rc(nlilt: •;Ont Pct.,•c'1illr:
Bc::nc~m.vta •
Gh>luJl:i;c,cd
Sl)le
o.61 -!~i~
·!."l ·! Q~ ·1,l)
SSB-Wm \.n\' -1!nhtd,-:~d
-i.!-1
Emerging Markets
StJn·US r:,~,d
Sl)lc
.o 19
-tJ:
I ;~
·'l.I~ ·H6
SSS ~on..tJS Ckw. Untrt1lf'c•t
·1.$8
Bolstered by lessened Y2K concerns. the JPM EMBI finished a strong
year (+25.98%) with a good fourth quarter (+12.58%), helping to
narrow spreads over U.S. Treasuries. The Fed's decision to leave rates
unchanged at year end also helped the EMBI.
INTERNATIONAL FIXED INCOME
Style Median and Index Returns* for Periods ended December 31, 1999
Cilobll I Sryfr
SSB World Govt-Unbedged
SSB World Govt-Local
Non-U.S. Style
SSB Non-U.S. Govt-Uohedged
SSB Non-U.S. Govt-Local
JPM Emerg Mkts Bond Index
Last
Quarter
.J.52
-1.34
0.00
-1.32
-l.58
0.27
12.58
Last
Year
-5.52
-4.27
-0.81
-7.03
-5.07
-0.1 3
25.98
Last3
Year
3.46
3.43
5.75
2.JJ
2.30
5.79
6.27'
Last5
Years
7.31
6.41
8.23
6.69
5.90
8.60
16.21
Last 10
Years
8.58
8.03
8.34
9.13
8.60
8.77
Last 15
Years
12.21
10.33
13.18
11.91
8.47
Return Attribution for Non-U.S. Gov't Indices Country Weights -SSS Non-U.S. Govt
As of December 3 1, 1999 Fourth Quarter 1999
Country (bv wei~hll Total Local
Japan 4.44'k 0.40'k
Gcnnany ·6.05 ·0.19
Italy ·6.05 -0.18
France ·6.08 ·0.22
Unite.d Kingdom 0.29 2.48
Spnin -5.94 ·0.o7
Canada 0.18 -1.06
Netherlands ·5.92 ..().04
Belgium -5.88 0.00
Denmark -S.66 0.34
Sweden ·3.08 1.00
Austria -6.04 -0.17
Ausualia ·1.31 -1.59
Finland -5.89 -0.01
Switzedand ·6.13 0.13
Ponug:il -5.82 0.06
Ireland ·6.32 ·0.47
" Returns less than on.:i year :ire nol annualized-
"" D~rivcJ from MSC! EAfE tlnto
Curttn<'V ..
4.03'k
-5.88
·5.88
-5.88
-2.13
-5.&7
1.25
-5.87
-5.88
-5.98
·4.04
-5.88
0.27
·5.88
-6.25
·5.88
·5.88
li•111'il1 1(1111/'/t•/' f.1>!1!1
\
J
Real Estate Corner
Based on Callao's preliminary estimates, the private equity real es-
tate market outpeifonned the public real estate securities market by
more than 17% for 1999. Callan's real estate database indicates that
direct real estate investments gained an estimated 10.72% while the
NAREIT Composite Index fell 6.47% in the last year. The gap nar-
rows extensively when looking at the income component of the re-
turns with NAREIT at 7.59% and NCREIF estimated to be 8.25%.
Given the REITs' poor stock performance, it's no surprise that pen-
sion funds Jed real estate acquisitions for the year.
Demand for property markets remains solid; however, no looming
events exist that could boost demand significantly. With most prop-
erty markets at equilibrium and no foreseeable upswing, it is timely
for investors to concentrate on acquisitions with higher income re-
turns than appreciation potential.
Within the property sectors, office and hotels are the most suscep-
tible to downward shifts in the economy, but Central Business Dis-
trict office and luxury hotels still exhibit signs for increased income
potential, as new supply has been slow compared to other sectors. E-
commerce continues to be a threat to the retail sector, while indus-
trial investors are trying to capitalize on the shift by acquiring assets
ideally situated for shipping and distribution. Apartment demand re-
mains high and, according to 'forto Wheaton Research, rent increases
are expected to outpace inflation.
Both Teno Wheaton and Prudential forecast property markets to soften
slightly in 2000. With the softening of property markets coupled with
the Federal Reserve raising interest rates in November, we should
see upward pressure on property capitalization rates (i.e., net operat-
ing income/purchase price) in 2000. The KorpaczReal Estate Inves-
tors Survey estimated the overall capitalization rate to be 9.13% in
the fourth quarter, one basis point lower than the previous quarter.
;: S:1'~ i f .V\~
~ ~1.1': " . ~ H\t~
~ II'.: ~ ,,.
~·!tr'~
~ . ..,-,,
·YJ'.l.
Callan Database Group Returns
Fourth Quarter 1999
'""~ .-----------,.--------~
•
.to".: ~-------~---------'
IO(Jl~J"C(tUik
1.S1i. Ptii:~nute
M1tdim 1'1h rt.rcotilt
O()ih P((IXl\Glc
Rul E1Utt D.!qt\H('
81(,0 :5 67
:!.97 I 1fi
·0,35
t;CRElfTotal Iii.it.•
1.G?
1-."<> I~ o.g ..
0 LO
·l.16
'-'ARF.li C(ltl)pc»ilc
•!.76
NARSIT Composite Sector Performance
Fourth Quarte r 1999
-1:w•c======:m•••li
Ii\'.. 141, l.!'.1 •I f>t "'• rt--. .,._. -z-; O·• 'J t
M••1•f'!'
Rolling One-Year Returns
-REIT Oatab:>s~
Real E~tatc 03ca1~1~e
REAL ESTATE
Database Median and Index Returns* for Periods ended December 31, 1999
I •
Real Estate Database (11a1 <~flees)
NCREIF Total Index**
I I
REIT Datahase
NA.REIT Composite
"Rctums less than one year arc not nnnunlizcd.
Last
Quarter
2.97
2.69
0.9-1
-1.76
Last
Year
J0.72
I0.92
·0.65
-6.47
Last a
.Thar
14.18
13.68
J.58
·3.36
30 Larcst qu.:uterly returns not nvaih1hl~: n\tums shown are for p<\rind~ 1~n1t~1l Si<pt.,mnPr }(), 1999
Last5
Years
/0.49
11.75
10.94
7.70
Last 10
lea rs
6.46
5.68
I 1.31
8.09
Last 15
Years
J
6.57
6.77
6.81
J
Alternat ive Thoughts
The Year in Review
An unprecedented fourth quarter yielded $45.2 billion in new private
equity commitments, driving 1999 to a new record of $95.5 billion
(a 12% increase over 1998's previous record of $85.3 billion). The
previous quarterly fund-raising high was last year's fourth quarter of
$29.7 billion. The 361 new partnerships represent a 25% increase
over last year's 289 funds. The fourth quarter produced 140 new part-
nerships, far surpassing the previous record of 98 in 1997's fourth
quarter. Venture capital partnerships represented essentially all the
increase in the number of funds. Since the fund-raising figures are
preliminary and will likely be revised upward over the next few
months, the final 1999 number will probably be over $100 billion.
Venture Capit al
The liquidity-driven bull market in "new economy" companies and
strategies rocketed venture capital to being the most active category
this year. Its 37% market share of commionents to institutional pri-
vate equity funds is astounding for a category that historically has
represented only about 20%. Early-stage funds were the primary ben-
eficiary of new capital with l 07 partnerships receiving $16.7 billion
in commitments, followed by multi-stage funds with 54 funds gath-
ering $11.8 billion.
A number of factors are influencing the increase. Venture funds have
accelerated the return of capital to investors, requiring investors to
reiuvest in new funds Lo ruaintain allocation targets. The venture capi-
talists are investing their capital in companies at record rates with
many general partners coming back almost annually to raise more
pools. The large fund count is not entirely due to new venture capi-
talist firms being formed. Existing general partner groups are also
creating partnerships more frequently.
Funds Closed January I through December 3 I, 1999
Strategy # of Funds $Am t (mil) %
Venture Capital 186 35,586 37.3
Acquisition/Buyout 104 34,800 36.4
Subordinated Debt 13 4,262 4.5
Restructuring 8 4,238 4.4
Other 7 1,767 1.8
Fund-Of-Funds 43 14,862 15.6
Totals 361 95,515 100.0
Source: The Pri"are Equity Ana/yJ/ and Buyour.-
Buy.outs
The $34.8 billion in capital commitments to buyout funds reprt:semetl
a decline of about a third in 1999 from last year. WhjJe about the
same number of funds were formed, only four "mega-funds" of over
a billion dollars were raised compared with eight last year.
Investors concerned with the large capital flows into buyout funds in
recent years will be pleased to see not only the decline in commit-
ments but also the large increase in capital being invested by existing
funds. The number of announced transactions climbed to 386, com-
pared to last years 306. The last time 386 buyout transactions were
completed la one year was 1988. The dollar volume of announced
transactions was $62 billion, up over 51% from last year's $41 bil-
lion.
ALTERNATIVE INVEST MENTS
Style Median and Index Returns* for Periods ended December 3 I , 1999
Asset Allocmor Stylt'
60% S&P 500 + 40% LB Agg ..
Convertibles D(llabasc
CSFB Convenible Securities
Marker N!!11tral Equity Style
90-Day T-Bills
YECO 100 Index
GS Commodity lndex
MLM Managed Futures lndex
"' Rerums less thun one y.:~r :Ire noc :1nnuttlizcd.
La.st Last Last/3
Quarter Year l"ea r
7.90 10.94 18.14
8.88 12.22 18.91
15.07 21.28 17.62
28.34 42.27 21.02
-J.89 -1.95 5.83
l.25 4.85 5.14
47.64 100.74 36.19
2.85 40.91 -3.06
-0.89 0.43 8.02
t •1111/r </111111 • / ,<l!//I
Last5 Last 10 Last 15
Years Years Years
19.24 14.57 15.33
20.18 14.14 15.28
19.68 14.98 14.59
20.07 14.83 14.45
8.06 10.84 14.35
5.27 5.11 5.81
29.54 23.37 15.85
7.98 5.54 10.07
9.22 8.24 9.91
< 11//1111. l:.,,.11·i1clv~ lw· fl/
A Brave N ew Economy?
As the new year begins, the U.S. economy is about to set a record for
the longest expansion in its history. In February, the expansion be-
comes 107 months old, breaking the record set in the 1960s, and in
April the economy will move into its lQlh year of expansion. ls this
record expansion really the result of a "new" economy? Unfortu-
nately, there is no definition of the new economy. Despite yearnings
for a brave new world, there are few indicators that the U.S. economy
has changed in any dramatic or fundamental way.
Clearly, there have been changes in the economy over time, but the
changes didn't suddenly happen in the 1990s. Cyclical sectors are
smaller relative to the total economy. Deregulation has encouraged
faster adaptation to market conditions. Indeed, the rise of computer
and information technology has allowed the entire economy to react
more quickly to economic signals, thus reducing imbalances of the
past. However, the overall growth in the economy remains similar to
that seen during the last two long expansions in the 1970s and 1980s,
and remains well below the spectacular growth of the 1960s. Pro-
ductivity growth has increased during the past five years, but is still
comparable to the growth seen in the previous expansions. We have
simply tuned up the "old" economy and are running on all cylinders.
Fed policy (i.e., high real interest rates to keep inflation in check)
and luck (e.g., weak overseas markets allowing us to import defla-
tionary pressure) have helped to extend this expansion, allowing in-
creasing growth and slowing inflation at a stage when the opposite is
osually true.
Expansions never die of old age, and nothing suggests that an end to
the current one is imminent. Real GDP growth clocked an impres-
sive 5.7% gain in the third quarter of 1999 and the preliminary esti-
mate for the fourth quarter is 5.8%. fnflation is past its trough, as the
CPI-Urose 2.74% during 1999, up from 1.6% in 1998. Oil prices
doubled during the year, but there is little sign that they are igniting a
Inflation -Year overYear
ZSt!> ...-------------------~
I<*
Pl'r (All Commodities)
-CPI (All U!blo Consumers)
?5 76 n 78"79 80 8\ 8l 83 84 85 81> 87 88 89 90 91 9Z 93 gq 95 96 97 98 99
wage/price spiral-oil is a much smaller share of the economy than it
was 25 years ago, and energy users are much better prepared to handle
oil price volatility. Wage gains remain modest, with average hourly
earnings up 3 .6% during the 1999. The Fed and the bond market may
be obsessed with inflationary pressures, but this obsession is largely
based on faith rather than fact at the moment.
The trade deficit continues to hit new records, fueled in part by the
strong dollar. Exports are growing as overseas growth improves, but
imports continue to climb faster, and the trade gap has been one of
the few drags on the economy over the past two years. The stock
market continues to power on, fueling wealth and subsequent con-
sumer spending. Measured in any rational way-price/earnings, price/
book, market cap/GDP -the market is ridiculously overvalued. How-
ever, as even the Fed hasn't been able to provoke a correction, we
may have to accept a fundamental shift in the risk premium and per-
manently higher p/e ratios (at least until the market falls, the bubble
bursts, and all the models are ultimately proven right). The housing
market may be our "canary in the coal mine," as starts and sales be-
gan to drop in the fall of 1999, the first indication that rising interest
rates are affecting the economy.
U.S. ECONOMY
CPI -All llrDan Consumera (year over year)
PPI -Finished Goods (year over year)
Employment Cost -Total Compensation Growth
Manufacturing Output -Productivity Growth
GDP Growth
Manufacturing Capacity Utilization (level%)
Consumer Confidence Index ( 1966= 1.000)
•Estimated
t'API'fAL ~IARIIBl' .. n""
Recent Quarterly Indicators
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
1998 1998 1998 1998
1.4% 1.7% 1.5% 1.6%
-2.0% -1.9% -2.9% -3.2%
2.7% 3.6% 4.1% 2.9%
3.6% 0.3% 2.5% 4.3%
5.5% l.8% 3.7% 6.0%
81.8 81.2 80.2 80,l
1.078 J.069 1.035 1.002
j(mrrh <11rr1r11•r /$)!>'•
1st Qtr 211.d Qtr 8rd Qtr tlth Qtr
1999 1999 1999 1999
1.7% 2.0% 2.6% 2.7%
-1.7% 0.2% 3.4% 4.2%
1.4% 4.6% 3.4% 3.6%
3.5% 0.6% 4.9% 3.3%
4.3% 1.9% S.7% 5.8%*
79.5 79.5 79.7 80.J
1.059 1.062 1.059 1.053
J
J
J
J
All Things Considered
Using the median manager returns from the latest quarter and ending
asset allocations from the prior quarter, Callan estimates the recent
total returns of the institutional investor community. Based on these
estimates, the mood of institutional fund sponsors should be far more
content than last quarter.
The adjacent graph illustrating the range of returns for public, corpo-
rate, and Taft-Hartley pension plans as well as endowments/founda-
tions shows positive returns across the board last quarter. The table
below compares the returns of the four institutional fund sponsors to
several benchmarks over longer periods. Choices in asset allocation
explain much of the differing performance.
Corporate plan sponsors, with their heavy domestic and international
equity exposures (49% and 14%, respectively, on average), and rela-
tively light fixed-income exposure (30%) led the group with a l 0.44%
gain in the fourth quarter. Endowments and foundations were also
winners ( + 10.14% ), benefiting from their high domestic equity allo-
cations (5 I%) and their relatively low domestic fixed-income expo-
sure (32% ). Also performing relatively well (+I 0.04%), public plans
were generally rewarded by their greater international equity posi-
tion (12%) but hurt by their relatively large domestic fixed-income
allocation (36%). Taft-Hanley plans rerumed 8.23% for the quarter,
lagging the other groups because of lower equity allocations (42%
domestic and 6% international) and greater domestic fixed-income
allocation (40%).
Callan's balanced manager groups generally maintain well-diversi-
fied portfolios and attempt to add value by underweighting or
overweighting asset classes as well as by stock selection. In the re-
cent quarter, both global and domestic balanced managers lagged
their static 60% equity and 40% fixed-income benchmarks.
.II)
.J()
::0
II)
lOlh J"ctC"('Oill:e '!51.h f\'tCC<l\W\'
M~th:in 15lh Pl's~vutitc 9CJth f'('tC(T1tilit
Callan Style Group Returns
Fourth Quart er 1999
h»; .-----~---~---~---~
.....
···~
,,..__ ___ _._ ___ _._ ___ __. ___ ___,
V.1bl11:J'bn Cor~~r:itt: Pl:m Enoow. t~ou11d
DlllbJSC D.uJtuJC. D~1i~!ie
1 l.72 12.61 JJJ !
tl f)! u ;~ ll(•J
JO(µ to.~ JU.I• ~6J ~.50 ti 4M ~'~ ~.;,, 4,77
Average A sset Allocation
as of September 30, 1999
• Ern.!uwmcnL1Found.11ion
T.ir1-IL·u·dc"}
Ol1:iklSI'
10)5
tu.I~ = 611$
}..1'l'
U.S. Equ<ty !'Ion· U.S. lJ.S. fi«~ Non.IJ,S. llt>I li.<1.11< Ah. Inv. C•>h
Equi1y rh«I
DIVERSIFIED ACCOUNT DATABASE
Database Median and Index Returns* for Per iods ende d December 31 , 1999
Public Plan Da1abase
Corporate Plan Database
E11dmvment!Ft>11nd11tio11 Darabase
Taft-Hartley Database .. 1 . • I
Domestic Balanced Database
Glolwl Balanced Database
60% S&P 500 + 40% LR AggrP.gate
60% MSCJ World + 40% SSB World Govt * Returns less thnn one ye:ir are no! annualized.
Last
Quarter
J(J.04
10.44
10.14
8.23
7.70
8.72
8.88
9.59
Last
Year
13.78
1435
13.69
10.93
9.47
12.21
12.??.
12.91
Last3
Year
15.52
16.33
16.87
15.20
15.87
14.39
18.91
14.63
Last 5
Years
16.66
1837
18.10
16.92
17.51
15.67
20.18
14.66
Last 10
Years
12.30
13.47
12.72
12.07
13.30
Il.93
14.14
10.39
Last15
Years
12.93
14.33
14.02
12.44
14.23
14.96
15.28
14.35
( 0/11111, bso,·i11/1•~ 1111. I:.!
J
J
J
MARKET OVERVIEW
ACTIVE MANAGEMENT VS INDEX RETURNS
Market Overview
The charts below illustrate the range of returns across managers in Callao's Separate Account database over tbe
most recent one quarter and one year time periods. The database is broken down by asset class to illustrate the difference in
returns across those asset classes. An appropriate index is also shown for each asset class for comparison purposes. As an
example, the first bar in the upper chart illustrates the range of returns for domestic equity managers over the last quarter.
Tbe triangle represents the S&P 500 return. The number next to the triangle represents the ranking of the S&P 500 in the
domestic equity manager database.
50%
40% -
30%
Cl) e E Q)
20%-
~
10%-
0%
oo•;;.,
10th Percentile 251.h Percentile
Median 7 51.h Percentile
901.h Percentile
lndeit •
80%
70%-
60%-
50%-
"' 40%-E =' 30%-q)
~ 20%
10%
0%
ti )"r \
Range of S~arate Account Manager Returns by Asset Class
Une Quarter Ended December 31, 1999
(J9)
Domestic Equity vs S&PSOO
40.80 22.81 14.84
7.29 l.73
14.88
(75 )1-<,_r----11 I
Nun-US Equity
VS
MSCI EAFE
39.82
28 30 23.37
17.25 9.81
16.98
·-I .
Domestic Fixed-lncome
vs
LBAggrBd
1.30
0.54 0.12
(0 18)
10.J•))
tO 12)
I (:>J)
Non-US Fixed-Income
vs
SB Non-US Gov
(0. ,.,,
(1 .Zll
•I 3.ll
12 1-l)
12.S61
I 5lll
~ •
Real Estate vs
NCREIF Index
8.60
S.67 2.97 l.36
(0.)51
170\
Cash Equivalents vs 3 Mon T-Bills
1.50
1.41 1.34
1.19 1.01
1.25
Range of SeI?_arate Account ~Manager Returns by Asset Class
Une Year Ended December 31, 1999
(45) .&
(83)~
(66)
\U<'/ (23)F3
Non-US Domestic Nun·US Real Cush
i'.!ll' "1-'---0-on_1_es_ti_c _...._ _____ ...._ _____ ....._ _____ ...._ _____ ..__ ____ __,
10th Percentile
25th Percentile
Median
15th Percentile
90th Percentile
Equity
VS S&PSOO
58.42 30.69 19.58
7.53
(0.65)
E11uity
VS
MSCIEAFE
62.62 46.96 35.40
28.77
22.15
Fixed-Income vs LB Aggi-Bd
3.78
L93 0.15
I 09)
l~.30!
Fixed-Income Estate Equivalents vs VS \IS
SB Non-US Gov NCREIF Index 3 Mon T-Bills
(1 60) 26.73 5.44
CS.521 16.10 5.33 •7.o:l) 10.72 5.06
f8.36l 7.23 4.71
(l0541 0.62 4.21
Indeit • 21.04 26.96 l(J.~!J ! 07) 4.85
Orange County Sanitation District 9
J
J
_J
J
J
DOMESTIC FIXED-INCOME
Active Management Overview
Active Management vs the Index
High Yield surpassed Active Cash as the best performer among separate account fixed-income styles during the fourth
quarter of 1999, but Active Cash won out for the year with a 4.94% return. The Core Bond style group was in negative
territory for the quarter, but outperformed both the Lehman Aggregate and the Lehman Government/Corporate Index,
with a return of (0.03%). The Core style group's one-year return underperformed the Lehman Aggregate's (0.82%)
return, but surpassed the Lehman Govt/Corp Index return of (2. 15%). Extended Maturity funds continued to lag behind
in the domestic fhed-income universe, underperforming all other styles as well as both indices for the fourth quarter
and the year.
Short Duration vs Long
During che fourth quarter and the year ended December 31, 1999, duration was a significant factor in domestic
fixed-income returns. For the quarter, Defensive funds outperformed both indices and surpassed Extended Maturity
funds by 2.24%. Similar standings characterized the returns for the year, as the Defensive style's return of 3.51 %
outperfonned the indices and exceeded Extended Maturity's return by 10.47%.
Mortgages and Corporates
After posting the lowest return among fixed-income styles in the third quarter, the High Yield style group regained
some ground during the fourth quarter of 1999 with a return of 2.35%, outperforming all other domestic fixed-income
style groups. Mortgage Backed funds did not fare as well, posting a 0.29% return for the quarter and a 1.74% return for
the year. The Lehman Brothers Mortgage Index and the Lehman Brothers Corporate Index both made modest gains for
the quarter with returns of 0.38% and 0.03% respectively.
en E ::i Q3 0:::
Separate Account Style Group Median Returns
Leh.man Aggrcg::1tc: 1O.l2'i \ for Quarter Ended December 31, 1999
4%~~~~~~~~~~~~~~~~~~~~~~~~~~-t__L_e_h.m~an_G_o_v_u_c_ofl>~: ~i(_lA_J_',_•__.
3'7. ---------------------------------------·-·------------------2551j,·----
'.!% --------f.33% _________ ----------------------------------------
_O_,fi4_o/it _________ -------------·-------0.29%-0.16% 0.19%
0%
(().()_':\Cc\
11'.1 --------------------------------
_\1LY....____ __________________ _
------------------· ------------------U--tQC..~---·---------------------
10%
Acti ve Cash Defensive lntcrmed Cocc
Bond
Core
Plus
Extended
Maturi Ly
Separate Account Style Group Median Returns
for One Year Ended December 31, 1999
Active Mocti:•ige
Duration Oacxed
High
Yield
Lehman Aggregate: (().l<~'· l
Lehman GovUCorp: ('.:!.I.Sr, '
5% r-4,94% ----------------______ !-~i'J! __
0%
"'" r
( IO'v \
Active Cash
0.69%
Defensive lntermed Core Bond
Core
Plus
(6.\16'7,)
fa tended Maturity Active
Duration
Mortgage
Backed
Hi h Yi~ld
Orange County Sanitation District
1
...,
l
1
l
I
J
J
J
J
J
/I Asset Class Risk and Return
The charts below show the four and one-quarter year annualized risk and return
for each asset class component of the Total Fund. The first graph contrasts these values
with those of the appropriate index for each asset class. The second cha1t contrasts them
with the risk and return of the median portfolio in each of the CAI Total Asset Class
Databases. In each case, the crosshairs on the chart represent the return and risk of the
Total Fund.
"' E ::I Q3
0::
"' e ::I
Q3 er::
62'4·
6.0%
5.8'7c
5.6%
5.4%
5.2%
Four And One-Quarter Year Annualized Risk vs Return
Asset "Classes vs Benchmark Indices
Total Domestic Fixed-Income
i ~
Merrill L nch 1-3yr Govt/Co
Lehman Brothers 1-5 r Govt/Co
---tIEJ
5.0% +-----.....------------.------....-------1
0.0% 0.5% 1.0% 1.5%
Standard Deviation
2.0% 2.5%
6.2%
6.0'7c
5.8%
5.6'hi
5.4%
5.2'7c
5.0'k
48%
Four And One-Quarter Year Annualized Risk vs Return
Asset Classes vs Asset Class Median
)
I Total Domestic Fixed-Income
l Defensive Fixed-Income Style H
...., Mone~ Market Median I
0.0% 0.2% 0 4% 0.6% 0.8% l.0% 1.2% 1.4% 1.6% 1.8% 2.0% 2.2% 2.4%
Standard Deviation
Orange County Sanitation District
Investment Manager Asset Allocation /I The table below contrasts the distribution of assets across the Fund's investment
managers as of December 31, 1999, with the distribution as of September 30, 1999.
Asset Distribution Across Investment Managers
Domestic Fixed Income
Long Term Operaling Fund
Liquid Operating Monies
Total Fund
01'11llge County Sanitation District
December 31, 1999
Market Value Percent
$302,145,919 100.0%
282,593,851 93.5%
19.552.069 6.5%
$302,145,919 100.0%
September 30, 1999
Market Value Percent
$290,213,128 100.0%
270,912,502 93.3%
19.300.626 6.7%
$290,213,128 100.0%
l
Investment Manager Returns /I The table below details the rates of return for the plan's investment managers
over various time periods ended December 31, 1999. Negative returns are shown in red,
positive returns in black. Returns for one year or greater are annualized. The first set of
returns for each asset class represents the composite returns for all the fund 's accounts
for that asset class.
(1) Net of Fees .
..J Orange County Sanitation District
1
J
J
Vl e 3 0) ~
0) > ·a Cd ~ ~
PIMCO-LIQUID OPERATING MONEY
PERIOD ENDED DECEMBER 31, 1999
/J Investment Philosophy
I
The Money Market Funds Database consists of actively managed short term funds.
highly liquid, short-term financial instruments.
These funds invest in low-risk,
Quarterly Summary and Highlights
• PfMCO-Liquid Operating Money's portfolio posted a
1.30% return for the quarter placing it in the 23 percentile
of the Money Market Database group for the quarter and
in the 7 percentile for the last year.
• PIMCO-Liquid Operating Money's portfolio
outperformed the T-Bls by 0.06% for the quarter and
outperformed the T-Bls for the year by 0.23%.
Quarterly Asset Growth
Beginning Market Value $19,300,626
Net New Investment $-11
Investment Gains/(Losses) $251.454
Ending Market Value $19,552,069
Performance vs Money Market Database
7%
6%
-(26)~~m> 5%
4%
3%
2%
I% (48)!! ·~~~J~~
0%
I Olh Percentile
25th Percentile
Median
75lh Percentile 90th Percentile
PIMCO-Liquid
Opcmung Money • A Net of Fee.-; 8 B
T-Bls •
Lw.1 Qtuirter
1.35
I 30
1.24
1.17 l.09
1.30
l.27
1.25
Last Yt:ar
5.04
4.87 4.64
4.40
4.15
5 08 4.93
4.85
Relative Return vs T-Bls
025%
0.20%.
0.10'7o
0.05%
0.00%
(0.051/,).
10.t0m-
95 1996 1997 1998 1999
I • PrMCO-Liquid Operating Money I
I
E~~(l'' I 'F6 I 'l ll (25) B ro) (24)1:~r 1 ) (23)~B 9)
Last 2 Years Lai.13 Years Last 4-1/4 Years
5.22 5.29 5.32
5 05 5.14 5.17
4.1!5 4.92 4.97
4.61 4.70 4.76
439 4.50 4.56
5.38 5.46 5.50
5.23 5 30 5.34
5.05 5.14 5.18
Money Market Database
Annualized Four And One-Quarter Year Risk vs Return
6.0% ......---......---------------.
5.5% D
ratino Munu
5.0'i'c D
Vl D
E ::::i 4.5% Qi ~
D
D
4.0%
[]
0 0
35%
3.Q"h; +--.-......... ----.--......... --.---.--..----...---1
0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50
Standard Deviation
Orange County Sanitation District
j
J
PIMCO-LONG TERM OPERATING FUND
PERIOD ENDED DECEMBER 31, 1999
/J Investment Philosophy
•
I
Defensive Style managers aim to minimize interest rate risk by investing predominantly in short to intermediate
tenn securities. The average portfolio maturity is typically two to five years.
Quarterly Summary and Highlights
• PIMCO-Long Term Operating Fund's portfolio posted a
0.62% return for the quarter placing it in the 88 percentile
of the Defensive Fixed-Income Style group for the quarter
and in the 94 percentile for the last year.
• PIMCO-Long Term Operating Fund's portfolio
outperformed the ML15 G/C by 0.21 % for the quarter and
outperformed the ML15 G/C for the year by 0.13%.
Quarterly Asset Growth
Beginning Market Value $270,912,502
Net New fnvestmeot $9,999,978
Investment Gains/(Losses) $1,681.371
Ending Market Value $282,593,851
Performance vs Defensive Fixed-Income Style
7%~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ <67)E1,;===!;!i)~l)jj (64>L :I M~l
(94)~,.~~:Bl ~t~~
6%-
5%
4%
3%
2%
IOlh Percentile
25th Pcrccniile
Median
75tb Percentile
90th Percentile
PIMCO-L11ng 'l'crm
Opcrm.in.g Fund • I\ ML G/C 1-5 cxcL 13Blls 8 B
ML15G/C *
1.12
0.96
0.84
0.72
0.58
0.62
0.38
041
(94) *
4.22
3 79
3 51
3.22
2 87
2.32
2.11
2.19
I AC94l
OC95X
Relative Return vs MLlS G/C
0.3% L 0.2% -
____ ,__ __ _
Vl E 0.1%-::s ts .c::i::
Q) 0.0% > '.::! "' G3 ~ (0 , .,,, ·-
(0.2'/, )-
(0.ViJ-
95 1996 1997 1998 1999
I • PlMCO-Long Term Operating Fund I
Orange County Sanitation District
IMSI 2 Years Last 3 Yeru·s Lust 4-J/4 Years
5.49 5.99 6.21
5.36 5.87 6.09
5.18 5.75 5.83
5.08 5.57 5.74
4.93 5.50 5.66
5.15 5.94 6.05
4.86 5.61 5.75
4.90 5.64 5.79
Defensive Fixed-Income Style
Annualized Four And One-Quarte r Year Risk vs Return
6.4% -------....... -----------..
0 0
6.2%
6.0% 0
"' e El-Ct-::s 5.8% -0
Q) 0 D qp ~ CJ a MLG/C 1-5 excl. BBBs 5.6%
0
5.4% 0
5.2%
0.5 LO 1.5 2.0 2.5 3.0
Standard Deviation
J
J
LONG TERM OPERA TING FUND
PORTFOLIO CHARACTERISTICS SUMMARY
DECEMBER 31, 1999
/J Portfolio Structure Comparison
The charts below compare the structure of the portfolio to that of the index from the three perspecti ves that have
the greatest influence on return. The first chart compares the two portfolios across the different sectors. The second chart
compares the duration distribution (or term structure). The last chart compares the distribution across quality cells.
Treasuries
21 % Sector Allocation Treasuries
56%
Global Bonds I%
Asscl Backed
0%
Agencies
l 8'7o
CM Os 3%
Long Term Operating Fund
Duration Distribution
Lehman Government/Corporate 1-5
Weighted Average Duration
40'ki .,..., -----,.----...------....---------.--1 • Long Term Operating Fund: 2.30
D Lehman Government/Corporate 1-5: 2.37 .9 35% '-32:4%----
~ ~ ._
0
.9 ;g .... 0 0.. ._
0
30'7o
25'7c
0'7o
100'7c
----____ i4.t~ ------
<1.0 l.0-1.5 1.5-2.0
Quality Distribution
2.0-2.5 2.5-3.0 3.0-3.5 3.5-4.0 4.0+
Years Duration
Weighted Average Quality
• Long Tenn Operating Fund: Aal ______ J _____ ..........,o __ L_e_hm_an_G_o_v_er_n.,...m_e_n_tl_C_o_rp_o_r_a_te_l-_5,....: _A_a_a~
_______ l~----_______ l_~---_______ J ____ ~_
I I I c 40% -----
v 0 .... v -------0..
2.0%Q,3% l.7% E:i.L,;;;,;,;;.~~L__;,~~;.i~.ii~.c-=:':=~ll-.1;•;•~r::=:':=~c..l 1~::~~ :r ;.;~:~-:: ::~;~ ~~::~;;;
Aaa+ Aaa Aal Aa2 Aa3 Al A2 A3 Baal <Baal
Moody's Rating
*All Statistics shown on the page are dependent on the securities in the portfolio being recognized (by their Cusip)
and priced. In this case 99% of the secunties in the portfolio (by market val ue) were recognized and priced.
Orange County Sanitation District
LONG TERM OPERA TING FUND
PORTFOLIO CHARACTERISTICS DETAIL
DECEMBER 31, 1999
Weighted Average Portfolio Characteristics
Total Fund, By Asset Class and By Sector
Ending Percent
Market of Effective Effective
Sector Value* Portfolio Coul!nn Maturi Iv
Total Fund $304,169,774 100.0% 6.34 5.79
AsseL Baoked $514,228
A~ndes $55. 135,523
C Os $I 0,434.484 Co~rates $76,353,949
Glo al Boa<ls $1,996.740
Mortgages $42,623.653
Trcasunes $64.254.159 Total Fixed-Income $25 l,3 l2, 736
<:ash R11uiv11lenl~ $52,857 ,037
Issuer Name Issue Name
Us Trcu.~ury NOlCli . 5.625 913010 I Com mil ·n, 1>ur \inmn Sf Mtg 6.500% 01/1512029 rcdcral Natl Mtg M~11 M edi Preassign 00788 Fedcml Nail Mtg Assn Medi 5.710% 1211snoo8 Dd 1 F1.:dernl Home lJl Mt~ Curp 6.000% 07120/2001 Dd 0
0.2% 6.28 l.05
18.1 % 5.96 3.91 3.4% 6.92 15.04
25.1% 6.74 2.84
0.7% 6.16 3.36
14.0% 6.48 2L78
21.l% 6.65 3.48 82.6% 6.50 6.96
17.4% 5.55 0.25
5 Largest Holdings
Ending Percent
of
Pu1·tfulio SCl.'tor
Treasuries
Mortg~cs /\uencrcs A,;en1:ies
Agc11clcs
Market
Value
$2.3.530.5116 $20.176.245 $15.231 ,150 $1~.157.120
$1'.!,725.416
77%
6.6% 5.0% 4.4%
4.2%
5 Lowest Rated Holdings (Moody's Rating)
liSucr Nnme lss111.• Name
Long Island 1.tg Co Deb 8.20% 3115/20!3
CounLrywidc HQmc Loan-Glob6.850 6/15/04
Hullur Finl lm: Medium T~ Tranche# Tr 00225 D
l'npulur Inc Medium l'crm Nl Tranche# Tr 00004 Dl
Huller Finl tnc Atg Rt 06/25/2001 Dd
Sl'cll1r
Corporntl!.~ Corporates Corporates
Corporates
Corporates
Ending
Markel
Value
'i>J,998,589 S2,JSH86
$992.893 ,$9'16,175 $2.()Jl,070
Percent
of
Portfuliu
0.7% 0.8% 0.3%
0.3%
0.7%
5 Longest Duration Holdings
rs.o.uer Nan1e Issue Nami,
f ederal Home Ln Mtg Curp M Ser 1610 Cl 1620-Zfs G
Long rsland Ltg Co D<lh S.20li; 3/15n023
Commit To Pur GnmaSf Mtg 6.000% 01/15/2029
United States Trea~ Bds Dob 13.25% 05115/14 United Stales Treas Nts Nt 3.375% 1/15/2007
S1.-ctor
CMOS
Co1pf1fa1cs
MtlrtgngL'.4t
rn::~~um;s Trca~uries
Ending
Market
Valot!: .s2,o;u .12i;
Sl.998.589
SS.683.563 SJ.~.721 $10,167,516
Percent
of
Portfoli11
().7'iJ
0.7'ifi l.9%
1.2% 3.3%
5 Holdings with ffighest Effect Yield
Ending Percent
Yield
5.87
6.23
6.83 7.13 4.73
0.16
7.18
5.75 5.93
5.55
Effective
Yield
6.2-1 7.50 6.73 7.07
6.71
Effel'tive
Yjdtl
8..10 7.39 7.07
7.27
0.34
Effective
Yield
7.9l
8.10 7.40
6.94 4.17
OA OA
Duration Convexit:i:: Qualitv
2.30 0.01
0.59 (),I)(})
2.82 () 1-ll
4.17 0.06 1.40 O.Q3
0.12 0.00
4.43 0.07
2.96 0.07 2.73 0.01
0.25 0.00
OA OA
Dunttfon Cnnvcxil)I
1.62 0.03
5,89 10.00)
1.42 0.03 5.77 cl)t)())
1.28 (() I'll
OA OA
Dun1tion ConVe..'\'.il\
7.36 n ll t 3.78 0.17
l.60 0.03 1.25 0.02
0.24 0.00
OA OA
Aal
Aaa
Aaa+
Aal Al
Al
Aaa+
Aaa+ Aal
Aaa
011alitv
Aaa+
Aaa+ Aaa+
Aaa Aaa+
Quality
Baa3 A3
A3
A3
A3
Dur11ti11n C11nv~xltv Onulih•
10.08 O 02 Aaa+ 7 .36 (().11 1 Baa3 7.12 0.40 Aaa+
6.23 0.55 Aaa+ 6.16 0.00 Aaa+
Market of Effective OA OA
lssncr Nnmc Issue Name
Long ldnnd Ug C(1 Deh R.20% 3/l 512023
l'ctlcral Mumc: Lu Mtg t:'orp M Ser 1620 Cl 1620-Zfs G Commit 'l'ti Pur Gnmu Sf Mtg 6.500% 0 l/1512029
Rear Steams Cus Inc Sltolf 6.750% 4115/03 Scars Roebuck Acccp Tr#OO Mtn 6.54% 2/2012003
s~ctur
CO!JKlfU(l."'S
CM Os
Mnn.g:igc~ CUrporutc.s Corporutcs
Value
Sl.998.589
$2.021.22& .S'.!O, I 76,2.t5 Sl.087.7~0 $1,964,412
*Market Value shown does not include payables and receivables.
Purtfoliu
0.7%
07% 6.6%
07%
0.6%
Yicltl
8.10
7.91 7.50
7.49 7.49
Duruliun Convexity
7.36 Lu 11
10.08 0.02 5.89 0.0()) 2.87 0.10
2 83 0.(XJ
Ouulitv
Bna3
Aaa+
Aaa+
A2
A2
All St.atistics shown uu the page are dependenl on the securities in tbe portfolio being recognized (by their Cusip)
and priced. In this case 99% of the securities in the portfolio (by market value) were recognized and priced.
Orn.ngc County Sanita.tion District
INVESTMENT ·MANAGEMENT PROGRAM
Orange County
'San itation District
1 STRATEGY REVilEW FOR THE PERIOD
OCTO~ER 1·, 1999 ·~ DECEMBER 31, 1999
• FINANC~, ADMINISTRATION & HUMAN RESOURCES COMMITTH . .
MARCH 8, 2000
, 840 NewP,ort Center Drive
fbst Office Box 6430
Newport Beach
'.
California. 92658-b43J)
949 · 640-JO:il
AGENDA
BOND MARKET REVIEW
II PERFORMANCE I PORTFOLIO REVIEW
Ill CURRENT OUTLOOK I STRATEGY
PACIFIC INVESTMENT MANAGEMENT COMPANY
U.S . GROWTH CONTINUED AT A
STRONG PACE, PUSHING INTEREST RATES HIGHER
RATES ROSE THROUGHOUT
THE YEAR
• U.S. economy contin ues
to grow
• Market expected further
Fed tightening
INTERMEDIATES ROSE MOST
IN 1999
• One-year rates rose the most
in the Fourth Quarter
TREASURY YIELD MOVEM8NT5
7.5 1-------.---------.-----~-------1
7.0
6.5
:!2 5.5 .~
>-5.0
30-Yr. T-Bond ~
................. -~~ _____ ,.-·--_ ........... __ , .... ,.,.'
.... ~ .. -· .. ·· .......... · _ ... , ..... _. ............ ,,,
4 .. S ····-~_ ... ,, ...
.. 4 •• .,,··· ...... _ ....................... --·-
1-Yr. T-Bi/I
4.0
3.5 .__ _____ .__ ____ _ic_ ____ _J _____ __J
200
175
150
125
100
75
so
25
0
lQ '99 2Q '99 3Q '99
CHANCE IN TREASURY YIELDS
3 Mos. 1 Yr. 2 Yrs. 5 Yrs. 1 o Yrs.
I D4Q '99 8 1999 1
SOURCE: Bloomberg
4Q'99
30 Yrs.
6.48%
5.95%
3
PACIFIC INVESTMENT MANAGEMENT COMPANY
STRATEGY RECAP -FOURTH QUARTER
LONG-TERM OPERATING FUND
Period Ended December 31, 1999
PORTFOLIO STRUClt!KE
DURATION I)> BELOW INDEX
MATURITY MIX ... BROADER-THAN-INDEX
GREATER-THAN-INDEX EXPOSURE TO:
• Corporate sector
SECTOR/ ISSUE ...
• Agency securities
• Mortgage sector
4
REl.ATIVE IMPACT
FO~RTH QUARTER
1.999
.~·· l" c
SLIGHT POSITIVE
SLIGHT POSITIVE
POSITIVE
PACIFIC INVESTMENT MANAGEMENT COMPANY
STRATEGY RECAP -FOURTH QUARTER
LIQUID OPERATING FUND
Period Ended December 31, 1999
PORTFOL~O STRUCTURE
..
DURATION .. AT INDEX
MATURITY MIX .. SLIGHTLY BROADER-THAN-INDEX
GREATER-THAN-INDEX EXPOSURE TO
SECTOR I ISSUE .. AGENCY DISCOUNT NOTES AND
COMMERCIAL PAPER
5
Ri:tATIVE IMPACT.
FOURTH QUARTER
1999
NEUTRAL
NEUTRAL
POSITIVE
PACIFIC INVESTMENT MANAGEMENT COMPANY
REVIEW OF PERFORMANCE
Through December 31, 1999
• Long-Term Operating Fund
Since*
In ception
9/30/95 3 Yrs .* 2 Yrs.* 1 Yr. 9 Mos. 3 Mo.
12/31/99
Market Value Orange County
Sanitation District (l-T) (%) 6.1 6.0 5.1 2.3 1.9 0.6
$282,850, 161
Merrill 1 -5 Year
Gov't. I Corp. Index (%) 5.8 5.6 4.9 2.2 1.8 0.4
• Liquid Operating Fund Since*
Inception
9/30/95 3 Yrs.* 2 Yrs.* l Yr. 9 Mos. 3 Mo. 12/31 /99
Market Value Orange County
$19,551,618 Sanitation District (Liq-op) (%) 5.5 5.5 5.4 5.1 3.9 1.4
3 Month T-Bill (%) 5.1 5.0 4.9 4.7 3.6 l .3
• Anoualiz;ed.
6
PACIFIC INVESTMENT MANAGEMENT COMPANY
CURRENT OUTLOOK
ECONOMfC OUTLOOK
• STRONG EQUITY & HOUSING MARKETS
FUEL U.S. GROWTH
• GLOBAL GROWTH PRODUCES CONTINUED
RESURGENCE IN COMMODITY PRICES
• TIGHT LABOR MARKETS SQUEEZE CORPORATE
PROFITABILITY
• FED CONTINUES TO RAISE SHORT-TERM RATES
STRATEGY
INTEREST RATE SLIGHTLY BELOW INDEX DURATION
MATURITY MIX
SECTOR
BROADER THAN INDEX
OVERWEIGHT MORTGAGES
OVERWEIGHT AGENCIES
HIGH QUALITY CORPORATE HOLDINGS
7
PACIFIC !NvESTMENT MANAGEMENT COMPANY
\ .
Investment Management Program
Orange County Sanitation District
F AHR Committee
March 8, 2000
Biographies
Joseph A. Fournier
Mr. Fournier is an account manager, with a focus on servici ng institutional clients. He j oined the firm in 1999, having been
previously associated with Sharp HealthCare as a senior financial analyst. Mr. Fournier holds a bachelor's degree in
Economics from the University of California at Los Angeles and an MBA from the Grad uate School of Management at the
University of California at Irvine.
Rita J. Seymour
Ms. Seymour is a Vice President and member of PIMCO's account management group. Ms. Seymou r joined the firm six
years ago, having been previously associated with Salomon Brothers. She has 13 years of investment experi ence, including
her experience at the Congressional Budget Office and the U.S. Treasury Department, and holds a bachelor's degree in
Economics from Washington University, an MPA from the University of Texas, and an MBA from the Sloan School of
Management, MIT.
Guiding Principles for
Investment Management
• Orange County Sanitation District's Investment Policy Statement
determines investment objectives, policies and guidelines
• "The primary objectives, in priority order, of OCSD's investment
activities shall be":
-Safety
Liquidity
-Return on Investment
Many Roles of Fixed Income
• Providing stable cash flows
• Asset-liability matching
• A hedge against deflation
• Risk reduction through greater diversification
PIM CO' s Management Style
• Manage for the Long-Term
• Innovate and specialize
• Top-Down and Bottom-Up
• Yield Orientation
• Balanced Value Added
Top Down and Bottom Up
Investment Process
"Hands on"
day-to-day management
Current conditions and
strategy implementation
Critical strategies
defined quarterly
Firmwide focus on
economic environment
Secular themes first
1999 Bond Market Returns
Worst since 1994
• U.S. economy overheating
• Fed raised short term rates by 0.75%
20
15
(1)10 c .. ::I -QJ
~
5
0
US Bond Market Returns
•LBAG
U .S. Growth Continued At a Strong
, Pace, Pushing the Interest Rates Higher
• Rates rose throughout the year
-Market expected further Fed
tightening
Excess liquidity due to
Y2K concerns
• Intermediates rose most
Yields rose uniformly
in fourth quarter
Treasury Yield Movements
7.5 .---------.-----.-----..-------..,
7.0
6.5
;?6.0 e_
::2 5.5 Q) >= 5.0
30-Yr. T-Bond
... -...... ,, .. °'I ... .. . ,,.,. . ,,, ..,,. 4.5 i.--•• .,. ... ,, ,.--........ .,.
4.0 1-Yr. T-Bill
.............. NNN •.,,. ...
,,.. ........ .. --,. ..
.. w
3.5 ......__ ____ ......__ ____ ......__ ____ ..__ ____ ~
lQ '99 2Q'99 3Q '99 4Q '99
Change in Treasury Yields
200 4Q'99. 1993 180 179
150
"" 2!' 100 ~
so 47
0
3 Mos. l Yr. 2 Yrs. S Yrs. 10Yrs. 30 Yrs.
Source: Bloomberg
Investment Universe Limited by
OCSD' s Investment Guidelines
Long Term Operating Monies
• All investments must be in accordance with California
Government Code
• Permitted security types include:
-U.S. Treasuries and Agencies
-U.S. Mortgage-Backed Securities
U.S. Corporates Bonds
Commercial Paper/Money Markets
• Portfolio Duration/Maturity
-Maximum Final Maturity = 5 years
-Minimum/Maximum Duration = 80% -120% of the Index
• Benchmark = Merrill Lynch 1-5 Year Government Corporate
PIMCO' s Portfolio Construction
Long Term Operating Monies
• Below index duration
• Underweight Treasuries and Agencies
• Overweight corporates for yield
enhancement
• Mortgage exposure adds yield
without sacrificing quality
Index Construction
Corporates
22%
Agencies
16%
Portfolio Construction
Mortgages
18%
Corporates
28%
Commercial
Agencies
13%
Paper
14%
Treasuries
27%
Investment Universe Limited by
OCSD's Investment Guidelines (cont.)
Liquid Operating Monies
• All investments must be in accordance with California
Government Code
• Permitted security types include:
-U.S. Treasuries and Agencies
-U.S. Corporates Notes
-Commercial Paper/Money Markets
• Portfolio Duration/Maturity
-Maximum Final Maturity = 1 year
-Maximum Duration = 0.5 years
• Benchmark= Salomon 3-month Treasury Bill Index
PIM CO' s Portfolio Construction
Liquid Operating Monies
• Below index duration
• Underweight Treasuries
• Overweight Agencies
• Corporates and commercial
paper enhance yield
Index Construction
Treasuries
100%
Portfolio Construction
STIF
Corporates
23%
Commercial
Paper
14%
Agencies
24%
Treasuries
18%
Review of Performance
~ Through December 31, 1999
• Long-Term Operating Fund
12/31/99 Market Value: $282,850,161
Since*
Inception
9/30/95 3 Yrs.* 2 Yrs. *
Orange County Sanitation
District (L-T) (%)
Merrill 1-5 Year
Gov't. I Corp. Index (o/o)
• Liquid Operating Fund
6.1
5.8
12/31/99 Market Value: $19,551,618
Since*
Inception
6.0 5.1
5.6 4.9
9/30/95 3 Yrs.* 2 Yrs. *
*Annualized.
Orange County Sanitation
District (Liq-op) (%)
3 Month T Bill (o/o)
5.5
5.1
5.5 5.4
5.0 4.9
1 Yr. 9 Mos. 3 Mo.
2.3 1.9 0.6
2.2 1.8 0.4
1 Yr. 9 Mos. 3 Mo.
5.1 3.9 1.4
4.7 3.6 1.3
PIMCO' s Outlook and Strategy
Economic Outlook
• Strong equity & housing markets fuel U.S. growth
• Global growth produces continued resurgence in commodity
• prices
• Tight labor markets squeeze corporate profitability
• Fed continues to raise short-term rates
Strategy
Interest rate
Maturity mix
Sector
Slightly below index
Broader than index
Overweight mortgages
Overweight agencies
High quality corporates holdings
250
200
* 150 .._
t/l
"O -QJ
>= 100
50
0
Pockets of Relative Value
Yield Spreads Over Treaswies
--Mortgages
--AAA Corporates
... ···· ···· ··· A Corporates
1/98 3/98 5/98 7/98 9/98 11/98 1/99 3/99 5/99 7/99 9/99 11/99
FAHR COMMITTEE Meeting Date To Bd. of Dir.
03/08/00 03/'ll./OO
AGENDA REPORT ~m Number ~o-Lf Item Number
Orange County Sanitation District
FROM: Gary Streed, Director of Finance
Originator: Steve Kozak, Financial Manager
SUBJECT: TREASURER'S REPORT FOR THE MONTH OF FEBRUARY 2000
GENERAL MANAGER'S RECOMMENDATION
Receive and file Treasurer's Report for the month of February 2000 . ..
SUMMARY
Pacific Investment Management Co. (PIMCO), serves as the District's professional
external money manager, and Mellon Trust serves as the District's third-party custodian
bank for the investment program.
The District's Investment Policy, adopted by the Board, 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" portfolios. The
District's external money manager is operating in compliance with the requirements of
the District's Investment Policy. The District's portfolio contains no reverse repurchase
agreements.
Historical cost and current market values are shown as estimated by both PIMCO and
Mellon Trust. The District's portfolios are priced to market ("mark-to-market") as of the
last day of each reporting period. The slight differences in value are related to minor
variations in pricing assumptions by the valuation sources at the estimate date.
PROJECT/CONTRACT COST SUMMARY
None.
BUDGET IMPACT
D This item has been budgeted.
D This item has been budgeted, but there are insufficient funds.
D This item has not been budgeted.
[8] Not applicable (information item)
H:\wp.dtalfin\210\crane\FAHR\Fahr2000\Mar\Treasurer's Report· Feb.doc
Revised: 8/20198 Page 1
ADDITIONAL INFORMATION
Schedules are attached summarizing the detail for both the short-term and long-term
investment portfolios for the reporting period. In addition, a consolidated report of
posted investment portfolio transactions for the month 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 District's custodian bank, is the
source for these reports. Transactions that were pending settlement at month end may
not be reflected.
These reports accurately reflect all District investments and are in compliance with
California Government Code Section 53646 and the District's Investment Policy.
Sufficient liquidity and anticipated revenues are available to meet budgeted
expenditures for the next six months.
On February 24, 2000, the District received $63.5 million from the Orange County
Investment Pool settlement distributions. The funds were deposited in the District's
Long-Term portfolio for investment. The table below details the book balances of the
District's funds at month-end. A graphical representation of month-end balances is
shown by the attached bar chart.
Funds/Accounts -
State of Calif. LAIF
Union Bank Checking Account
Union Bank Overnight Repurchase Agreement
PIMCO -Short-term Portfolio
PIMCO -Long-tenn Portfolio
District 11 GO Bond Fund 921
Debt Service Reserves @ Trustees
Petty Cash
TOTAL
ALTERNATIVES
None.
CEQA FINDINGS
None.
ATTACHMENTS
1. Monthly Investment Reports
2. Monthly Transaction Report
H:lwp.dtalfin\210\crane\FAHR\fahr2000\Mar\Treasure(s Report -Feb.doc
Revised: 8120198
Book Balances Estimated
February 29, 2000 Yield(%)
$ 24,175,271 5.8
337,214 --
3,328,000 5.1
19,565,992 5.2
344,497,416 4.4
2,010 5.7
32,156,124 6.0
8,900 --
$424,070,927
Page 2
Prepared by Finance, 03/07/2000, 10:17 AM
Sep,99
Monthly Treasurer's Report
District Fund Balances
Oct, 99 Nov,99
el PIMCO -Long-term
m Debt service Reserves
13 Bank Accts m Dist 11 GO Bond Fund
Dec,99
Ill PIMCO -Short-term
CDLAIF
•Petty Cash
G:\excel.dta\fin\2220\geggi\Flnance\monthly treasurers report
•
Jan,OO Feb,00
MONTBL Y REPORT
ORANGE COUNTY SANITATION DISTRICT
INVESTMENT MANAGEMENT PROGRAM
PIMCO'S PERFORMANCE MONITORING & REPORTING
(for the month ending 29 February 2000)
Liquid Operating Monies (603)
15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate:
• PIM CO • Mellon
Historical Cost:
• PIM CO
• 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 PORTFOLIOPERFO~CE Total Rate of Return(%) by
Period:
I Month:
3 Months:
12 Months:
Year-to-Date:
-·
Commentary
$19,652,945
$19,565,992
$19,587,145
$19,516,525
0.15
0.20
$29,682
0%
78%
"AAA"
0%
Yes
Portfolio
0.58
1.52
5.46
1.04
• Interest rates at the short-end of the yield curve continued to rise during February m expecfotion ofeddiliomil interest rate tightening by·thc Fed (e.g. 3-month Treasury Bill rates rose 9 basis points).
• The Liquid portfolio outperfonned its benchmark by 13 basis points in February.
• PIMCO's decision to maintain a below-index duration added slightly to portfolio returns.
• PIMCO's emphasis on corporates and commercial paper slightly enhanced returns.
H:l.. \FINA.NCEl ... IREYISED UQ0200.RPT
.. •
Index
0.43
1.31
4.90
0.87
MONTHLY REPORT
ORANGE COUNTY SANITATION DISTRICT
INVESTMENT MANAGEMENT PROGRAM
PIMCO'S PERFORMANCE MONITORING & REPORTING
(for the month ending 29 February 2000)
Long-Term Operating Monies (203)
15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate:
• PIM CO • Mellon
Historical Cost:
• PIM CO
• Mellon
15.1.2 MODIFIED DURATION Of Portfolio:
Of Index:
15.1.3 1%INTERESTRATECHANGE Dollar Impact (gain/loss) of 1 % Change:
15.1.4 REVERSE REPOS % of Portfolio in Reverse Repos:
(see attached schedule)
15.l.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 Total Rate of Return(%) by
Period:
I Month:
3 Months:
12 Months:
Year-to-Date:
Commentary
• While short-end interest rates moved higher in February, yields on longer mnturities declined (e.g. 2 and 5-year Treasury Note rates fell 7 and 8 basis points, respectively).
• The Long-Term portfolio underperformed its benchmark by 11 basis points in February.
• PIMCO's decision to maintain a below-index duration detracted slightly ftom portfolio returns given the decline in longer-term interest rates.
• PIMCO's decision to hold mortgage securities added to relative returns, while their emphasis on corporates detracted from returns given their weak performance.
H:I,,, IFINANCE\1101, •• IREVJSED L-1'0200.RPT
$344,527,241
$344,497,416
$347,326,352
$348,040,409
2.23
2.37
$7,762,645
0%
48%
"AAA"
0%
Yes
PortfoJio Index
0.62 0.71
0.59 0.50
3.24 3.10
0.63 0.49
@) ORANGE COUNTY SANITATION DISTRICT II PAGE: ~ I
BASE: USD
NET ASSET SECTOR SUMMARY
OCSF07511 /02 29-FEB-2000 PRELIMINARY
LIQUID OPER-PIMCO
%OF UNREALIZED
PORTFOLIO DISTRIBUTION COST MARK.ET VALUE TOTAL GAIN/LOSS
CASH & CASH EQUIV A LENTS
CASH 70,927.42 70,927.42 0.36% 0.00
TOTAL 70,927.42 70,927.42 0.36% 0.00
UNITED STATES
COMMERCIAL PAPER -DISCOlrnT 2,679,225.50 2,679,225.50 13.54% 0.00
TREASURY BILLS -LESS THN 1 YR 3,411,181.67 3,411,181.67 17.24% 0.00
FEDERAL HOME LOAN MORTGAGE -LESS 1,288,261.00 1,288,261.00 6.51% 0.00
FNMA ISSUES -LESS THN 1 YR 2,488,916.67 2,488,916.67 12.58% 0.00
FED HM LOAN BNK-LESS THN 1 YR 3,799,396.22 3,799,396.22 19.20% 0.00
TOTAL UNITED STATES 13,666,98 l.06 13,666,981 .06 69.06% 0.00
TOTAL CASH & CASH EQUW A LENTS 13, 737 ,908.48 13,737,908.48 69.42% 0.00
FIXED INCOME SECURITIES
UNITED STATES
U.S. AGENCIES 999.200.00 999,840.00 5.05% 640.00
ABS: CAR LOAN 905,913.00 902,664.00 4.56% ·3,249.00
BANKING & FINANCE 1,497,145.50 1,495,318.50 7.56% -1,827.00
INDUSTRIAL 1,935,205.00 1,921,446.00 9.71% -13,759.00
UTILITY -TELEPHONE 512,080.00 508,815.00 2.57% -3,265.00
TOTAL UNITED STATE'S 5,849,543.50 5,828,083.SO 29.45% -21,460.00
TOTAL FIXED INCOME SECURITIES S,849,543.50 5,828,083.50 19.45% -21,460.00
OTHER PORTFOLIO ASSETS
PAYABLES/RECEIVABLES 223,959.80 223,959.80 1.13% 0.00
TOTAL 22~,959.80 223,959.80 1.13% 0.00
TOTAL OTHER PORTFOLIO ASSETS 223,959.80 223,959.80 1.13°.l.1 0.00
07-Mar-2000 9:09:48 Exec"tive Workbench
n================~~==========================='='-==================~
OCSF0751J102
L!QUJD OPER-PJMCO
PORTFOLIO DISTRIBUTION
NET PORTFOLIO ASSETS
07-Mar-2000 9:09:48
ORANGE COUNTY SANITATION DISTRICT
NET ASSET SECTOR SUMMARY
29-FEB-2000
COST MARKET VALUE
19,811,411.78 19, 789,951. 78
%OF
TOTAL
100.00%
PAGE: 2
BASE: USD
PRELIMINARY
UNREALIZED
GAIN/LOSS
-21,460.00
Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: ·1
BASE: USD
NET ASSET SECTOR SUMMARY
OCSF07522202 29-FEB-2000 PRELIMINARY
LONG TEIW OPER-PIMCO
%OF UNREALIZED
PORTFOLIO DISTRIBUTION COST MARKET VALUE TOTAL GAIN/LOSS
CASH & CASH EQUIVALENTS
RECEIVABLES 2,464,610.21 2,464,610.21 0.71% 0.00
PAYABLES ·56,352,929.09 -56,352,929.09 -16.19% 0.00
TOTAL -53,888,318.88 -53,888,318.88 -15.48% 0.00
UNITED STATES
COMMERCIAL PAPER · DISCOUNT 48,256, 122. 73 48,256, 122. 73 13.86% 0.00
FEDERAL HOME LOAN MORTGAGE-LESS 5,757,755.89 5, 757, 755.89 l.65% 0.00
FNMA ISSUES -LESS THN fYR l 0,492,307.22 10,492,307.22 3.01% 0.00
REPURCHASE AGREEMENTS 56,500,000.00 56,500,000.00 16.23% 0.00
MUTUAL FUNDS 517,367.17 517,367.17 0.15% 0.00
TOTAL UNITED STATES 121,523,553.01 121,523,553.01 34.91% 0.00
TOTAL CASH & CASH EQUIVALENTS 67,635,234.13 67 ,635,234.13 19.43% 0.00
FIXED INCOME SECURITIES
UNITED STATES
U.S. GOVERNMENTS 100,886,298.55 99,455,819.22 28.57% -1,430,479.33
U.S. AGENCIES 53,155,037.57 52,378,963.66 15.05% -776,073.91
GNMA SINGLE FAMJL Y POOLS 25,454,375.00 25,674,040.00 7.38% 219,665.00
GNMAMULTI FAMILY POOLS 3,593,829.01 3,556,426.59 1.02% -37,402.42
FHLMCPOOLS 9,370,079.48 9,170,667.20 2.63% -199,412.28
FHLMC MULTICLASS 8,063,554.83 7,832,457.54 2.25% -231,097.29
FNMA POOLS 955,371.92 942,719.00 0.27% -12,652.92
ASSET BACKED SECURITIES 52,625.81 52,510.57 0.02% -115.24
ABS: HOME EQUITY 405,177.61 404,164.67 0.12% -1,012.94
MUTUAL FUNDS 1,000,000.00 986,860.00 0.28% -13,140.00
BANKING & FINANCE 57,699,831.20 57,331,822.50 16.47% -368,008.70
INDUSTRIAL 7,126,189.00 6,806,456.05 1.96% ·319,732.95
umITY -ELECTRIC 5, 145,550.00 4,959,550.00 1.42% -186,000.00
UTILITY -TELEPHONE 7,497,255.00 7,309,725.00 2.10% -187,530.00
TOTAL UNITED STATES 280,405, 174.98 276,862, 182.00 79.54% ·3,542,992.98
07-Mar-2000 9: I 5: 13 Executive Workbench
OCSF07522202
LONG TERM OPER-PIMCO
PORTFOLIO DISTRIBUTION
TOTAL FIXED INCOME SECURITIES
OTHER PORTFOLIO ASSETS
PAYABLES/RECEIVABLES
TOTAL
TOTAL OTHER PORTFOLIO ASSETS
NET PORTFOLIO ASSETS
07-Mar-2000 9:15:13
ORANGE COUNTY SANITATION DISTRICT
NET ASSET SECTOR SUMMARY
29-FEB-2000
COST MARKET VALUE
.280,405,174.98 276,862,18.2.00
3,569, I 62.38 3,569, 162.38
3,569, 162.38 3,569,162.38
3,569,162.38 3,569,162.38
351,609,571 .49 348,066,578.51
%OF
TOTAL
79.54%
1.03%
l.03%
l.03%
100.00%
PAGE: 2
BASE: USD
PRELIMINARY
UNREALIZED
GAIN/LOSS
-3,542,992.98
0.00
0.00
0.00
-3,542,992.98
ExecuJive Workbench
YLDANAL
OCSF07511102
DISTRICT; LIQUID OPERATING
YIELD ANALYSIS
2000/02/29
=-~-:=::----=====-============•===================================»======~============~========
PAR VALUE YTM AT CURRENT MOODY MARKET
SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE
CASH & CASH EQUIVALENTS
.oo DREYFUS TREASURY CASH MGMT ' .ooo .000 AAA .ooo
996085247 AAA
3,5001000.00 U S TREASURY BILLS 5.094 .000 P-1 97.462
912795DK4 03/02/2000 DD 03/04/99 A-1+
3,800,000.00 FEDERAL HOME LN Bl< CONS DISC 5. 721 .000 P-1 99.984
313384TT6 MAT 03/01/2000 A-1+
2,500,000.00 FEDERAL NATL MTG ASSN DISCOUNT 5.725 .000 P-1 99.557
313588TU9 MAT 03/02/2000 A-1+
1,300,000.00 FEDERAL HOME LN MTG CORP DISC 5,858 .000 P-1 99.097
313396WA7 MAT 04/~S/2000 INCOME AT MAT A-1+
900,000.00 FLORIDA PWR CORP DISC 5.860 .000 P-1 99.482
34llOAC68 03/06/2000
900,000.00 XEROX CORP DISC s.ees .ooo P-1 99,061
98412CDCO 04/12/2000
900,000.00 DAIMLERCBRYLSER DISC 5.9'41 .ooo 99.149
2338EODAl 04/10/2000
----------------
TO'rAL CASH & CAS8 EQUIVALENTS 5.529 .000
PAGE
RUN DATE
RUN TIME
1
03/03/00
13.13.50 =·=====-----------------
TOTAL COST/
MARKET VALUE
.oo .oo
3,411,181.67
3,411,181.67
3,799,396.22
3,799,396 .• 22
2,488,916.67
2,488,916.67
1,288,261.00
1, 288, 261. 00
895,336.00
895,336,00
89+,546.50
891,546.SO
892,343.00
892,343 .00
--------...---------13,666,981.06
13,666,981.06
\ TYPE
\ TOTAL
.oo .oo
24.95
17 .50
27.79
19.49
18.21
12.77
9.42
6.61
6 .55
ol.59
6 .52
4 .57
6.52
4.58
______ _,... __
100.00
70.11
YLDANAL YIELD ANALYSIS PAGE 2
OCSF0751Jl02 2000/02/29 RUN DATE 03/03/00
DISTRICT: LIQUID OPERATING RUN TIME 13.13.50 ----:::=== =--=======~=-
PAR VALUE YTM AT CURRENT MOODY MAR.KET TOTAL COST/ ' TYPE
SECURITY I D SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE ' TOTAL -----------------------------------------------------------------------------------
FIXED INCOME SECURITIES
l,000,000.00 FEDERAL HOME LN MTG CORP DEBS .ooo 4.706 AAA 99.984 999,200.00 17.15
3134A3RT5 FLTG RT 05/18/2000 DD 05/18/99 AAA 999,840.00 5.13
475,ooo.oo ASSOCIATES CORP NORTH AMER 6.296 6.009 AA3 99.843 474,273.25 8 .13
046003EL9 6.000% 06/15/2000 A+ 474,254.25 2 .43
900,000.00 FORD MTR CR MTN t TR 00538 6.312 6.999 Al 100.296 905,913.00 15.48
345402YKl 7 .020% 10/10/2000 DD 10/10/95 A 902,664.00 4.63
400,000.00 LEHMAN BROS HLDGS MTN TR 00252 6.353 6.415 Al 99.767 400,21.6.00 6.84
52517PLM1 6.400% 08/30/2000 DD 09/26/97 A 399,068.00 2.05
900,000.00 GENERAL MTRS CORP NTS 6 .425 9.448 A2 101.869 922,860.00 15.73
370442AR8 9.625% 12/01/2000 DD 12/01/90 A 916,821.00 4.70
150,000.00 MORGAN J P & CO MTN SR 00043 6.430 6.153 Al 99.546 l.49, 625. 00 2.56
61687YBUO 6 .125% 10/02/2000 DD 10/02/97 AA 149 I 319 • 00 .11
500,000.00 INTERNATIONAL PAPER CO NT 6.535 9.690 Al 100.102 506,445.00 8.58
460146AJ2 9 .700% 03/15/2000 DD 03/21/90 BBB+ 500,s10.oo 2.57
500,000.00 BURL;INGTON RES INC NT 6.578 9.546 Al 100.823 505,900.00 8.64
1220l4AB9 9.625% 06/15/2000 DO 06/28/90 A-504,115.00 2.59
soo,000.00 GTE CORP DEB 6.669 9.213 BAAl 101. 763 s12,080.oo 8. 7.3
362320AQ6 9 .375\ 12/01/2000 A 508,815.00 2.61
475,ooo.oo FINOVA CAP CORP 6.820 6.406 BAAl 99.511 473,031.25 8.11
318074AP8 6.375% 10/15/2000 DD 10/11/95 A-472,677.25 2. 42
----------------------------------
TOTAL FIXED INCOME SECURJTIES 4 .598 6.866 S,84lJ,543.50 100.00
S,828,083.50 29.90
-------------------------------------
TOTAL 5.215 2.320 19,516,524.56 100.00
19,495,064.56 100.00
YLDANAL
OCSF07522202
DISTRICT: LONG-TERM OPERATING
PAR VALUE
SECURITY ID ___ ""!'!"' __________ _ SECURITY DESCRIPTION
CASH & CASH EQUIVALENTS
517,367.17 DREYFUS TREASURY CASH
996085247
56,500,000.00 GOLDMAN SACHS LP REPO
99366Y204 05.600\ 03/01/2000 DO
200,000.00 FEDERAL NATL MTG ASSN
313588TU9 KAT 03/02/2000
MGMT
02/29/00
DISCOUNT
100,000.00 FEDERAL HOME LN MTG CORP DISC
313396TZ6 HAT 03/07/2000
1,400,000.00 CAMPBELL SOUP CO DISC
l3443ACP8 03/23/2000
10,400,000.00 FEDERAL NATL MTG ASSN DISCOUNT
313588VV4 MAT 04/20/2000
3,600,000.00 ALUMINUM CO AMER DISC
02225ACBO 03/14/2000
2,600,000.00 FORD MTR CR CO DISC
34539TC86 03/08/2000
8,300,000.00 GENERAL BLEC CAP DISC
36959HD79 04/07/2000
4,300,000.00 IBM CR CORP DISC
44922AOA5 04/10/2000
100,000.00 OAIMLERCBRYLSBR DISC
2338EOOA1 04/10/2000
YTM AT
SOOK
.ooo
5.600
5.673
5.675
5 .767
5.769
s. 777
5.802
5,865
S.86.9
5.884
YIELD ANALYSIS
2000/02/29
CURRENT
YIELD
5 .444
S.600
.ooo
.ooo
.000
,000
.ooo
.ooo
.ooo
.ooo
.ooo
HOO DY
s-p
AAA
AAA
P-1
A-1+
P-1
A-1+
P-1
P-1
A-1+
P-1
P-1
P-1
P-1
~T
PRICE
100.000
100.000
99.764
99 .561
99.538
98.969
99. 712
99.455
99.064
98.999
99.254
PAGE
RUN DATE
RUN TIME
TOTAL COST/
MARKET VALUE
517,367.17
517,367.17
56,soo,ooo.oo
56,500,000.00
199,528.33
199,528.33
696,923.89
696,923.89
1,393,526.56
1,393,526.56
101 2921778.89
10,292,778.89
3,589,632.00
3,589,632.00
2,58!i1 831.44
2,585,831.44
0, 222,307. 39
8,222,307.39
4,256,973.72
4,256,973.72
694,716.44
694,776.44
3
03/03/00
13.13.50 :=-------
\ TYPE
\ TOTAL
.42
.13
46.49
14.18
.16
.os
.57
.11
1.14
,35
8.46
2.58
2 .95
.90
2.12
.65
6.76
2.06
3,50
1.07
.57
.17
YLDANAL
OCSF07522202
DISTRICT: LONG-TERM OPERATING
===·=----=----=-=========:o===~·--
PAR VALUE
SECURITY ID SECURITY DESCRIPTION
141000 1 000.00 XEROX CORP DISC
98412COH9 04/17/2000
2,800,000.00 CBA (OELAWAR) DISC
124783037 04/03/2000
11 0001 000.00 GENERAL BLEC CAP DISC
36959BEK9 05/19/2000
51 1001 000.00 FEDERAL HOME MTG MTG CORP DISC
31339'6UP6 MAT 03/21/2000
410001 000.00 IBM DI SC
44922ACHO 03/21/2000
TOTAL CASH ' CASH EQUIVALENTS
FIXED INCOME SECURITIES
2,000,000.00 BANXERS TR NY CORP GLOBJU, NT
06636SDW4 FLTG RT OS/ll/2003 OD 05/11/98
l,soo,000.00 CHRYSLER FINL LLC HTN tTR00615
17120QE80 FLTG RT 08/08/2002 OD 04/08/98
3,000,000.00 CONSOLI.DATED EDISON N Y DEBS
209111CU5 FLTG RT 06/15/2002 OD 06/20/97
340,811.80 FHLHC GROUP f78-6064
31348SWZl 6.384\ 01/01/2028 DO 12/01/97
2,000,000.00 FORD MTR CR CO GLOBAL NTS
345397RV7 FLTG RT 02 /13/2003 DD 02/13/98
2,000,000.00 FORD MTR CR CO TERM ENHANCED
345397SC8 FLTG RT 08/27/2006 DD 08/27/98
l,000,000.00 GENERAL HTRS ACCEP MTN
37042WVR9 FLTG RT 12/17/2001 DO 12/15/98
3 1950,000.00 GENERAL MTRS ACCEP CORP NTS
37042SQVS FLTG RT 08/18/2003 OD 08/17/98
YIELD ANALYSIS
2000/02/29
YTH AT CURRENT MOODY MARl<ET
BOOK YIELD S-P PRICE
5.888 .000 P-1 99.012
5.913 .000
6.009 .ooo
6 .057 .000
7.234 .000
5.645 3.767
.000 5.796
.000 6.021
.000 6.182
.ooo 6.506
.ooo 6.245
.ooo 6.219
.ooo 6.49,J,
.ooo 5.586
P-1
P-1
A-H
P-1
Al
A-
Al
A+
A1
A+
AAA
AAA
Al
A
Al
A+
A2
A
A2
A
98,927
98.682
99 .232
99.341
99.987
99.984
99.991
98.125
99.656
99.859
100.375
99.677
PAGE
RUN DATE
RUN TIME
TOTAL COST/
MARI<ET VALUE
13,861,699.45
13,861,699.45
2,769,970.00
2,769,970.00
6,907,755.56
6,907,755.56
5,060,832.00
5,060,832 .00
3,973,650.17
3,973,650.17
121,523,553.01
121,523,553.01
1,992,800.00
1,999,740.00
3,498,635.00
3,499,440.00
2,994,300.00
2,999,730.00
332,504 .51
334,421.58
1,992,580.00
1,993,120.00
1,998,613.60
1,997,190.00
l,010,830.00
3,0ll,250.00
3,919,768.50
3,937,241.50
4
03/03/00
13.13.50
% Tlc'.PE
% TOTAL
11.40
3.48
2.27
.10
5.68
l,. 73
4.16
1. 27
3.26
1.00
100.00
30,49
.72 .so
1. 26
.88
1.08
.75
.12
.08
.71 .so
• 72 .so
l.08
.76
1.42
,99
YLDANAL YIELD ANALYSIS PAGE 5
OCSF07522202 2000/02/29 RUN DATE 03/03/00
DISTRICTi LONG-TERM OPERATING RUN TIME 13.13.50
-r-=:=:c:=--...:.:::1":~ ~=:::::===~=---=:=::==c:::::=-:::::=---==---------~==--===-=~-
PAR VALUE YTM AT CURR.ENT MOODY MARKET TOTAL COST/ ' TYPE
SECURITY ID SECURITY DESCRIPTION BOOK HELD S-P PRICE MARKET VALUE ' TOTAL _____ ._~-----------------------~------.....-------------------------------------------
2,aoo,000.00 GNHA GTD REMIC TR 2000-9 FH .ooo 6.320 AAA 100.000 2,aoo,000.00 1.01
383784NX9 VAR RT 02/16/2030 AAA 2,000,000.00 • 70
2,000,000.00 HELLER FINANCIAL INC NTS .000 6.374 A3 100.548 2,000,000.00 • 72
423328BK8 FLTG RT 06/2S/2001 DD 06/25/99 A-2,010,960.00 .so
1,000,000.00 HELLER FINL MTN tTR 00246 .ooo 6.257 A3 100.681 1,000,000.00 l.09
42333HLF7 FLTG RT 04/28/2003 DD 04/27/99 A-3,020,430.00 .76
4,000,000,00 HOUSEHOLD FIN CO MTN .000 6 .423 A2 100.272 4,000,000.00 1.44
44181KZAS FLTG RT 06/24/2003 DD 06/24/98 A 4,010,880.00 1.01
i ,000,000.00 HOUSEHOLD FIN MTN SR f00570 .ooo S.726 A2 100.318 999,188.90 .36
44181KZT4 FLTG RT 08/01/2001 DD 09/04/98 A 1,003,180.00 .2s
s,000,000.00 LEBMAN BROS HLDGS MTN , .ooo 6 .655 Al 100.281 51 000,000.00 l.81
52517PQQ7 FLTG RT 12/12/2002 DD 12/07/99 A 5,014,050.00 1.26
1,100,000.00 MORGAN STANLEY MTN ITR 00311 .ooo 6.168 AA3 99 .953 1,699,Sl?.20 .61
6174SENY3 FLTG RT 01/28/2002 DD 01/27/00 A+ 1,699,201,00 .43
7,356,020.00 US TREASURY INFLATION INDEX NT 3.697 J.6S8 AAA 99.094 7,332,863.77 2.63
9128273A8 3.625% 07/15/2002 DD 07/lS/97 AAA 7,289,374.46 1.83
10,622,600.00 US TREASURY INFLATION INDEX NT 3. 720 3.573 AAA 94 .469 10,343,575.00 3 .62
9128272M3 3.37S% 01/15/2007 DD 01/15/97 AAA 10,035,063.99 2. 52
l,000,330.00 US TREASURY INFLATION INDEX NT 4.338 4.263 AAA 99.687 993,250.00 .36
9128275W8 4.250t001/15/2010 DD 01/15/00 AAA 997,198.97 .25
4,000,000.00 MORGAN STANLEY MTN ITR 00299 5.170 5.468 AA3 99 .859 3,997,788.00 1.44
61745ENL1 FLTG RT 04/15/2002 DD 04/15/99 A+ 3,994,360.00 l.00
2,100,000.00 U S TREASURY NOTES 5.294 6 .391 AAA 99 .750 2, 167.,321.15 • 75
912827Z54 06.375\ 09/30/2001 DD 09/30/96 AAA 2,094,750 .00 .5 3
s,200,000.00 U S TREASURY BONDS 5.617 10.189 AAA 116.547 6,698,250.00 2 .18
912810000 11.875% 11/15/2003 DD 10/05/83 AAA 6,060,444.00 1.52
1,500,000.00 ASSOCIATES CORP N A SR NTS 5.650 6.610 AA3 98.336 1,543,215.00 .SJ
046003HY8 6 .5oot 01115/2002 oo 07/11/97 A+ 1,475,040.00 .37
11000,000.00 HELLER FINANCIAL INC NTS 5.760 5.894 A3 97.S57 999, 7 30.00 .35
42333HKJO 5.750t 09/2S/2001 DD 09/25/98 A-975,570 .00 .24
YLDANAL YIELD ANALYSIS PAGE 6
OCSF07522202 2000/02/29 RUN DATE 03/03/00
DISTRICT: LONG-TERM OPERATING RUN TIME 13.13.50
=~========================~=====--------=,=====:::=:.=~=====~=====-======-==~===-===--==-=======--========--=====
PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE
SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL
----------------------------------------------------------------------------------------
2,005 1000.00 SEARS ROEBUCK ACCEP CORP MTN 5,804 6. 748 A3 96.921 2,060,739.00 .70
81240QGW6 6 ,540\ 02/20/2003 DD 02/20/97 A-1,943,266.05 .49
23,430,000.00 U S TREASURY NOTES 5.807 5.702 AAA 98 .656 23,351,289.8-5 8.34
9128275Ql 05.625\ 09/30/2001 DD 09/30/99 AAA 23,115,100.80 5.80
5,000,000.00 U S TREASURY NOTES 5.811 6.281 AAA 99.500 5 1086,402.25 l. 79
9128272L5 06.250\ 02/28/2002 DD 02/28/97 AAA 4,975,000,00 1.25
3,000,000.00 SEARS ROEBUC~ ACCEP CORP MTN 5.849 6. 776 Al 97.843 l,073, 170.00 1.06
81.240QJA1 6.630\ 07/09/201>2 DO 07/09/97 A-2,935,290.00 .74
6,000,000.00 NATIONSBANK CHARLOTTE N C MTN 5.882 5.853 AAl 99.953 5,9.96,400.00 2 .16
63858JOE6 5.850\ 04/07/2000 DD 04/07/98 AA-5,997,180.00 l.51
494,583.45 FHLMC MULTICL MTG p/c 1,574 E 5.912 5.933 99 .437 493,887.93 .17
3133T02D5 5.900\ 06/15/2017 491,798.95 .12
15,000,000.00 FEDERAL NATL MTG ASSN MTN 5.981 5.899 AAA 98.656 14,955,300.00 5 .34
3136'G2VO 5 .820\ 07/19/2001 DD 07/19/99 AAA 14,198,400.00 3.11
2,500,000.00 MERRILL LYNCH NOTES 5.995 6.454 AAJ 98 .769 2,526,725.00 .89
59018SX1'4 6 .375\ 10/01/2001 DD 10/03/97 AA-2,469,225.00 .62
1,516,650.70 GNMA II POOL f0080023 6.005 7.057 AAA 100.969 1,541,770.23 .55
l6225CAZ9 7.125\ 12/20/2026 DD 12/01/96 AAA 1,531,347.05 .38
11500,000.00 BELLSOUTH 'l'ELECOHHUNICATIONS 6.010 6.156 M2 97.463 7,497,255.QO 2 .64
079867AX5 6.000\ 06/15/2002 DO 06/15/98 AAA 7,309,725.00 1.83
12,500,000.00 FEDERAL HOME LN MTG CORP DEBS 6 .062 6 .055 AAA 99.090 12,485,625.00 4 .47
3134AlZMl 6 .000\ 07/20/2001 DD 07/20/99 AAA 12,386,250.00 3 .11
2,000,000.00 BANKBOSTON CORP SR NTS 6.133 6 .274 A2 97.619 1,999,,600,00 .10
0660STAL6 6.125\ 03/15/2002 DD 03/12/99 A 1,952,380.00 • 4.9
52,625.82 FIFTH THIRD BK AUTO TR 96A CLA 6.200 6.2U AAA 99.781 52,625.81 .01
31677EAA4 6.200% 09/01/2001 DO 03/15/96 52,510.57 .01
i ,000,000.00 POPULAR INC MTN fTR 00004 6.201 6.283 Al 98.686 i,000,000.00 .35
73317PA01 6 .200\ 04/30/2001 DD 04/21/99 BBB+ 986,860 .00 .25
2,5001000.00 FHLMC HULTICLASS CTF 2146 QT 6.207 6 .178 AAA 97 .125 2,455,859.38 .87
3133TKKU3 6.000\ 11/15/2011 AAA 2,428,125.00 .61
YLDANAL YIELD ANALYSIS PAGE 7
OCSFQ7522202 2000/02/29 RUN DATE 03/03/00
DISTRICT: LONG-TBR.M OPERATING RUN TI ME 13.13.50 ======-==-===-:=::z::=--~ ---==-==-==
PAR VALUE YTM AT CURRENT .MOODY MARXET TOTAL COST/ \ TYPE
SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------------------------------------------------------------------------------------
405,177.61 GREEN TREE CORP 99-D CL A-1 6 .290 6.306 AAA 99.750 405,177.61 .14
3935052Y7 6.290\ 10/15/2013 DD 08/26/99 AAA 404,164 .67 .10
4,soo,000.00 FEDERAL NATL MTG ASSN MTN 6.291 6.307 AAA 98.781 4,488,705.00 l.60
31364CXV5 6.230\ 03/01/2002 DD 03/03/97 AAA 4 I 44 5 I 14 5 • 00 1.12
3,lo9,518.68 Ff:ILHC l'fULTICLASS CTF El A 6.316 6.279 AAA 97 .110 3, 112,919.52 l.09
3133TCE95 VAR RT 08/15/2032 AAA 3,019,653.59 • 7·6
2,000,000.00 BEAR STEARNS COS INC 6.330 6.930 A2 97.400 2,031,960.00 • 70
073902AH1 6.750\ 04/15/2003 A 1,948,000.00 .49
21,soo,000.00 COMMIT TO PUR GNMA I SF MTG 6 .394 6.978 AAA 93.156 19,860,625.00 7.23
01N0626ll 6.500\ 03/15/2030 AAA 20,028,540.00 5 .03
2,000,000.00 FHLMC MULTICLASS CTF Tll A6 6.496 6.868 AAA 94.644 2,000,808.00 .68
3133TDPV2 6.5QO\ 09/25/2018 AAA 1,892,880.00 .48
2,398,493.64 FHLMC MULTICLASS CTF SER 1620Z 6.528 7.167 AAA 83. 715 2,242,353.70 .72
3133Tl7A4 6.000\ 11/15/2023 DD 11/01/93 AAA 2,007,896.79 .so
1,100,000.00 U S TREASURY NOTES 6.601 5.405 AAA 87.875 6,761,244.70 2 .44
9128274Vl 04.750\ 11/15/2008 DD 11/15/98 AAA 6,766,375.00 1. 70
25,000,000.00 U S TREASURY NOTES 6.621 6.566 AAA 99.000 24,837,890.63 8 .93
912827262 06.500\ 10/15/2006 DD 10/15/96 AAA 24,750,000.00 6 .21
8,8!18,535.37 FHLMC GROUP tGS-0476 6.628 7,049 AAA 99.300 9,037,574.97 3.19
3128DDQ55 7.000~ 02/01/2003 DD 02/01/98 AAA 8,836,245.62 2.22
6,250,000.00 COMMIT TO PUR GNMA SF MTG 6.637 6.642 AAA 90.328 5 1 593,750.00 2.03
0 1N060.635 6 .000\ Ol/15/2029 AAA 5,645,500.00 l. 42
2,008,130.92 GNMA II POOL t080088M 6.705 6.322 AAA 100.844 2,052,058.78 • 73
362.25CC20 VAR RT 06/20/2027 DD 06/01/97 AAA 2,025,079.54 .51
101500,000.00 FEDERAL BOMB LN MTG CORP DEBS 6. 711 6.556 AAA 96.094 10,323,075.00 3.64
3134A3'l'CO 6.300\ 06/01/2004 DD 06/01/99 AAA 10,089,870.00 2 .53
2,000,000.00 MARSH & MCLENNAN COS INC SR NT 6.717 6.873 A2 96.395 1,992,280.00 .69
571748AB8 6.625\ 06/15/2004 DD 06/14 /99 AA-1,927,900.00 .48
3,000,000.00 FORD MTR CR CO GLOBAL LANDHAJUC 6.739 6.929 Al 96 .699 2,995,080.00 l. 04
345397SJ3 6 .700\ 07/16/2004 DD 07/16/99 A+ 2,900,970.00 .73
YLOANAL YtELD ANALYSIS PAGE 8
OCSF07522202 2000/02/29 RUN DATE 03/03/00
DISTRICT: LONG-TERM OPERATING RUN TIME 13.13.50 -__ w_--;:-.. --== ====-=-=zr=---====-==-=
PAR VALUE YTM AT CURRENT MOODY MARI<ET TOTAL COST/ % TYPE
SECURITY ID SECURITY DESC.RIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL --------------------------------------~~------------------------------------------------
900,000.00 FEDERAL HOME LN BK CONS BOS 6. 777 6 .764 AAA .99.797 899,550.00 .32
3133MAQJ1 6,750% 02/01/2002 DD 02/01/00 AAA 898,173.00 .23
2,500,000.00 COUNTRYWIDE HOME LNS INC NT 6.866 7.069 A3 96.8'7 2,498,400.00 .87
22237UA88 6.850\ 06/15/2004 00 06/24/99 A 2,422,425,QO .61
975,647.09 FNMA POOL 10252703 6 .877 6.727 AAA 96.625 955,371.92 .34
31371HU48 6.500\ 09/01/2006 DD 08/01/99 AAA 942,719.00 .24
2,000,000.00 GNMA GTO REMIC TR 2000-2 PA 7.014 7 .051 AAA 99.279 1,996,875.00 • 71
3837B3C70 7.000\ 12/20/2022 AAA 1,985,580.00 .50
2,100,000.00 FEDERAL NATL MTG ASSN DEBS 7.265 6 .9J,3 AAA 95.835 2,000,440.00 .72
31359MEY5 6 .625\ 09/15/2009 OD 09/01/99 AAA 2,012,535.00 .51
2,000,000.00 LONG ISLAND LTG CO DEB 7.512 8.368 BAA3 97.991 2,151,250.00 .70
542671CT7 8,200\ 03/15/2023 DO 03/28/93 A-1,959,820.00 .49
976,318.28 WMP/BUNTOON PAIGE f000-11150 7.684 7.667 AAA 97.828 955,113.87 .34
302998GE3 7.500\ 12/01/2030 OD 10/21/99 AAA 955, 113.87 .24
9,600,000.00 U S TREASURY BONDS 7.966 8 .974 AAA 139.297 13,314,211.20 4 .83
912810DL9 12.500\ 08/15/2014 00 08/15/84 AAA 13,372,512.00 3 .36
----------------------------------------TOTAL FIXED INCOHE SECURITIES 4.193 6.074 280,405,174.98 100.00
276,862,182.00 69.51
---------------------------------
TOTAL 4.395 5.752 401,928,727.99 100.00
398, 385,735.01 100.00
-=====-=-======= ===-======-
ORANGE COUNTY SANITATION DISTRICT
OCSGOOOJ 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
PORTFOLIO DETAIL
01-FEB-2000-29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
RECEIPTS AND DISBURSEMENT TRANSACTIONS
CASH TRANSFERRED IN
0.00
NA9123459
CD
CASH TRANSFERRED OUT
0.00
NA9123459
cw
LONG TERM OPER-PIMCO
RECD FROM OCSF07511112
PER CLIENT INSTRUCTIONS
LIQUID OPER-PIMCO
TRANSFER TO OCSF0752222
PER CLIENT INSTRUCTIONS
CASH/SECURITIES RECEIVED FROM PLAN ADMINISTRATOR
0.00
NA9123459
CD
OTHER ADMINISTRATIVE EXPENSES
0.00
NA9123459 cw
0.00
NA9123459
cw
07-Mur-2000 8:57: 19
LIQtnD OPER-PIMCO
RECD FROM PLAN ADMINISTRATOR
ORANGE COUNTY SANITATION
LIQUID OPER-PIMCO
JAN WIRE FEES
LONG TERM OPER-PIMCO
JAN WIRE FEES
TRADE DATE/
SETTLDATE/
COMPLDATE
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
25-Feb-2000
25-Feb-2000
02-Peb-2000
02-Feb-2000
02-Feb-2000
02-Feb-2000
PAGE: • I
AMOUNT/
COST/
GAIN/LOSS
63,500,000.00
0.00
0.00
-63,500,000.00
0.00
0.00
63,524,580.44
0.00
0.00
-7.65
0.00
0.00
-17.00
0.00
0.00
fa:e<;Utive Wo1·kbench
OCSGOOO I 0000
OCSD-CONSOLJDATED
SHARES/PAR
SECURITY ID
TRANSCODE
PURCHASES
0.00
99366F650 cw
0.00
99366W133 cw
0.00
99366W687 cw
CASH & CASH EQUIVALENTS
450.40
996085247
B
450.40
996085247
FC
8,146.96
996085247
B
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
FED WIRE FEES
LEHMAN BROTHERS REPO
LIQUID OPER-PIMCO
FED WIRE FEES
LEHMAN BROTHERS REPO
LONG TERM OPER-PIMCO
FED WJRE FEES
CREDIT SUISSE FST REPO
LONG iBRM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
TRADE DATE/
SETTLDATE/
COMPLDATE
08-Feb-2000
08-Feb-2000
28-Feb-2000
28-Feb-2000
29-Feb-2000
29-Feb-2000
Ot-Feb-2000
Ol-Feb-2000
01-Feb-2000
Ol-Feb-2000
0 t-Feb-2000
02-Feb-2000
02-Feb-2000
PAGE: 2
AMOUNT/
COST/
GAIN/LOSS
-1.70
0.00
0.00
-3.40
0.00
0.00
-3.40
0.00
0.00
-450.40
450.40
0.00
-450.40
0.00
0.00
-8,146.96
8,146.96
0.00
Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: '3
PORTFOLIO DETAIL
OCSGOOOJOOOO Ol-FEB-2000-29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITYID TRANSACTION DESCRIPTION/ SETTLDATE/ COST!
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LIQUID OPER-PIMCO
8,146.96 DREYFUS TREASURY CASH MGMT 02-Feb-2000 -8,146.96
996085247 02-Feb-2000 0.00
FC 02-Feb-2000 0.00
LONG TERM OPER-PIMCO
2,561,708.42 DREYFUS TREASURY CASH MGMT 02-Feb-2000 -2,561,708.42
996085247 02-Feb-2000 2,561,708.42
B 0.00
LONG TERM OPER-PIMCO
2,561,708.42 DREYFUS TREASURY CASH MGMT 02-Feb-2000 -2,561,708.42
996085247 02-Feb-2000 0.00
FC 02-Feb-2000 0.00
LIQUID OPER-PIMCO
1,600,000.00 FEDERAL HOME LN BK CONS DISC 02-Feb-2000 -1,596,459.56
313384ID1 MAT 02/16/2000 02-Feb-2000 1,596,459.56
8 HSBC SECS INC, NEW YORK 0.00
LIQUID OPER-PIMCO
1,600,000.00 FEDERAL HOME LN BK CONS DISC 02-Feb-2000 -1,596,459.56
313384TD1 MAT02/16/2000 02-Feb-2000 0.00
FC HSBC SECS INC, NEW YORK 02-feb-2000 0.00
LIQUID OPER-PIMCO
2, I 00,000.00 FEDERAL HOME LN BK CONS DISC 02-Feb-2000 -2,095,385.83
313384IDI MAT 02/16/2000 02~Feb-2000 2,095,385.83
B GOLDMAN SACHS & CO, NY 0.00
LIQUID OPER-PIMCO
2, I 00,000.00 FEDERAL HOME LN BK CONS DISC 02-Feb-2000 -2,095,385.83
313384TD1 MAT 02/16/2000 02-Feb-2000 0.00
FC GOLDMAN SACHS & CO, NY 02-Feb-2000 0.00
07-Mar-2000 8:57:19 Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOLJDATED
SHARES/PAR
SECURITY ID
TRANSCODE
9,500,000.00
3l3396UP6
B
9,500,000.00
313396UP6
FC
1,300,000.00
313396TS2
B
l,300,000.00
313396TS2
FC
7,323.77
996087094
B
l,239.38
996087094
B
2,500,000.00
313588TU9
B
07-Mar-2000 8:57: 19
II ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTlON DESCRIPTION/
BROKER
LONG TERM OPER·PIMCO
FEDERAL HOME MTG MTG CORP DI
MAT03/21/2000
GOLDMAN SACHS & CO, NY
LONG TERM OPER·PIMCO
FEDERAL HOME MTG MTG CORP DI
MAT 0312112000
GOLDMAN SACHS & CO, NY
LIQUID OPER·PIMCO
FEDERAL HOME LN MTG CORP DIS
MAT 02/29/2000
HSBC SECS INC, NEW YORK
LIQUID OPER-PIMCO
FEDERAL HOME LN MTG CORP DIS
MAT 02/29/2000
HSBC SECS INC, NEW YORK
LONG TERM OPER·PIMCO
BSDT-LATE MONEY DEPOSIT ACCT
LIQUID OPER-PJMCO
BSDT-LATE MONEY DEPOSIT ACCT
LIQUID OPER-PIMCO
FEDERAL NATL MTG ASSN DISCOU
MAT 03/02/2000
WARBURG DILLON READ LLC, NEW
TRADE DATE/
SETTLDATE/
COMPLDATE
02-Feb-2000
02-Feb-2000
02-Feb-2000
02-Feb-2000
02-Feb-2000
02-Feb-2000
03-Feb-2000
02-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
01-Feb-2000
03-Feb-2000
II PAGE: 4
AMOUNT/
COST/
GAIN/LOSS
-9,427,040.00
9,427,040.00
0.00
-9,427,040.00
0.00
0.00
-1,294,667.l l
1,294,667. l 1
0.00
-l,294,667.11
0.00
0.00
-7,323.77
7,323.77
0.00
•l,239.38
1,239.38
0.00
-2,488,916.67
2,488,916.67
0.00
Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOLJDATED
SHARES/PAR
SECURITY ID
TRANSCODE
2,500,000.00
313588TU9
FC
900,000.00
34110AC68
B
900,000.00
34ll0AC68
FC
2,600,000.00
34539TC86
B
2,600,000.00
34539TC86
FC
1,239.38
996085247
R
l,239.38
996085247
FC
~ -·.,. '"n" o. 1'1· 10
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LlQUID OPER-PlMCO
FEDERAL NATL MTG ASSN mscou
MAT 03/02/2000
WARBURG DfLLON READ LLC, NEW
LIQUID OPER-PIMCO
FLORIDA PWR CORP DISC
03/06/2000
MERRILL LYNCH PIERCE FENNER
LIQUID OPER-PIMCO
FLORIDA PWR CORP msc
03/0612000
MERRILL LYNCH PIERCE FENNER
LONG TERM OPER-PIMCO
FORD MTR CR CO DISC
03/08/2000
BANK OF IRELAND, LONDON
LONG TERM OPER-PIMCO
FORD MTR CR CO DISC
03/08/2000
BANK OF IRELAND, LONDON
LIQUID QPER-PlMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
TRADE DATE/
SETTLDATE/
COMPLDATE
03-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
04-Feb-2000
04-Feb-2000
04-Feb-2000
04-Feb-2000
04-Feb-2000
PAGE: • 5
AMOUNT/
COST/
GAIN/LOSS
-2,488,9 l 6.67
0.00
0.00
-895,336.00
895,336.00
0.00
-895,336.00
0.00
0.00
-2,585,831.44
2,585,831.44
0.00
-2,585,831.44
0.00
0.00
-1,239.38
1,239.38
o.oo
-1,239.38
0.00
0.00
Executive Workbe11c:h
OCSGOOO 10000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
2,280,668. 75
996085247
B
2,280,668. 75
996085247
FC
1,200,000.00
3l3396TC7
B
1,200,000.00
313396TC7
FC
2,300,000.00
99366F650
B
2,300,000.00
99366F650
FC
81,928.89
996085247
B
07-Mar-2000 8:57: 19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROK.ER
WNG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER·PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
FEDERAL HOME LN MTG CORP DIS
MAT 02/1512000
HSBC SECS INC, NEW YORK
LONG TEJlM OPER-PIMCO
FEDERAL HOME LN MTG CORP DIS
MAT 02/15/2000
HSBC SECS INC, NEW YORK
LONG TERM OPER-PIMCO
LEHMAN BROTHERS REPO
05.610% 02/08/2000 DD 02/07/
LEHMAN BROS INC, NEW YORK
LONG TERM OPER-PIMCO
LEHMANBROTHERSREPO
05.610% 02/08/2000 DD 02/07/
LEHMAN BROS INC, NEW YORK
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
TRADE DATE/
SETTLDATE/
COMJ>LDATE
04-Feb-2000
04-Feb-2000
04-Feb-2000
04-Feb-2000
04-Feb-2000
07-Feb-2000
07-Feb-2000
07-Feb-2000
07-Feb-2000
07-Feb-2000
07-Feb-2000
07-Feb-2000
07-Feb-2000
07-Feb-2000
07-Feb-2000
08-Feb-2000
08-Feb-2000
PAGE: 6
AMOUNT/
COST/
GAIN/LOSS
-2,280,668.75
2,280,668.75
0.00
-2,280,668. 75
0.00
0.00
-1, 198,498.67
1,198,498.67
0.00
-1,198,498.67
0.00
0.00
-2,300,000.00
2,300,000.00
0.00
-2,300,000.00
0.00
0.00
-81,928.89
81,928.89
0.00
Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 7
PORTFOLIO DETAIL
OCSGOOO I 0000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOLIDATED
SJIARESIP AR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PlMCO
81,928.89 DREYFUS TREASURY CASH MGMT 08-Feb-2000 -81,928.89
996085247 08-Feb-2000 0.00
FC 08-Feb-2000 0.00
LONG TERM OPER-PIMCO
3,400,000.00 IBM DISC 08-Feb-2000 -3,376,834.67
44922ACMO 03/21/2000 08-Feb-2000 3,376,834.67
B GOLDMAN SACHS & CO, NY 0.00
LONG TERM OPER-PIMCO
3,400,000.00 IBM DISC 08-Feb-2000 -3,376,834.67
44922ACMO 03/21/2000 08-Feb-2000 0.00
FC GOLDMAN SACHS & CO, NY 08-Feb-2000 0.00
LONG TERM OPER-PIMCO
3,500,000.00 FEDERAL HOME LN MTG CORP DIS 08-Feb-2000 -3,484,619.44
313396TZ6 MAT 03/07/2000 08-Feb-2000 3,484,619.44
B HSBC SECS INC, NEW YORK 0.00
LONG TERM OPER-PIMCO
3,500,000.00 FEDERAL HOME LN MTG CORP DIS 08-Feb-2000 -3,484,619.44
313396TZ6 MAT 03/07/2000 08-Feb-2000 0.00
FC HSBC SECS INC, NEW YORK 08-Feb-2000 0.00
LONG TERM OPER-PIMCO
4,300,000.00 IBM CR CORP DISC 08-Feb-2000 -4,256,973.72
44922ADA5 04/J0/2000 08-Feb-2000 4,256,973. 72
B BANKERS TRUST CP/IPA, NEW YO 0.00
LONG TERM OPER-PIMCO
4,300,000.00 IBM CR CORP DISC 08-Feb-2000 -4,256,973. 72
44922ADA5 04/10/2000 -08-Feb-2000 0.00
FC BANKERS TRUST CP/lP A, NEW YO 08-Feb-2000 0.00
07-Mar-2000 8:57:19 Executive Workbe11cfl
OCSGOOOJ 0000
OCSD-CONSOLIDA'FED
SHARES/PAR
SECURITY ID
TRANSCODE
300.78
996085247
B
300.78
996085247
FC
8,300,000.00
36959HD79
B
8,300,000.00
36959HD79
FC
31,161.18
996085247
B
31,161.lS
996085247
FC
31,319.17
996085241
B
07-Mar-2000 8: 57: 19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
GENERAL ELEC CAP DISC
04/07/2000
GENERAL ELECTRIC CAPTIAL COR
LONG TERM OPER-PIMCO
GENERAL ELEC CAP DISC
04/07/2000
GENERAL ELECTRIC CAPTIAL COR
LONG TERM OPER-PlMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PlMCO
DREYFUS TREASURY CASH MGMT
TRADE DATE/
SETTLDATE/
COMPLDATE
09-Feb-2000
09-Feb-2000
09-Feb-2000
09-Feb-2000
09-Feb-2000
09-Feb-2000
09-Feb-2000
09-Feb-2000
09-Feb-2000
09-Feb-2000
l l-Feb-2000
l 1-Feb-2000
11-Feb-2000
l 1-Feb-2000
J 1-Feb-2000
14-Feb-2000
14-Feb-2000
PAGE: 8
AMOUNT/
COST/
GAIN/LOSS
-300.78
300.78
0.00
-300.78
0.00
0.00
-8,222,307.39
8,222,307.39
0.00
-8,222,307.39
0.00
0.00
-31,161.18
31, 161.18
0.00
-31,161.18
0.00
0.00
-31,319.17
31,319. t 7
0.00
Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
31,319.17
996085247
FC
8,453.50
996085247
B
8,453.50
996085247
FC
900,000.00
98412CDCO
B
900,000.00
98412CDCO
PC
12,800.00
996085247
B
12,800.00
996085247
FC
07-Mar-200() 8:S7: 19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PlMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER·PIMCO
XEROX CORP DISC
04/12/2000
GOLDMAN SACHS & CO, NY
LIQUID OPER-PIMCO
XEROX CORP DISC
04/12/2000
GOLDMAN SACHS & CO, NY
LIQUID OPER-PlMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PlMCO
DREYFUS TREASURY CASH MGMT
TRADE DATE/
SETTLDATE/
COMPLDATE
14"-Feb-2000
14-Feb-2000
14-Feb-2000
14-Feb-2000
14-Feb-2000
14-Feb-2000
14-Feb-2000
14-Feb-2000
14-Feb-2000
14-Feb-2000
l 4-Feb-2000
l 4-Feb-2000
14"-Feb-2000
15-Feb-2000
15-Feb-2000
15-Feb-2000
l.5-Feb-2000
15-Feb-2000
PAGE: 9
AMOUNT/
COST/
GAIN/LOSS
-31,319.17
0.00
0.00
-8,453.50
8,453.50
0.00
-8,453.SO
0.00
0.00
-891,546.SO
891,546.50
0.00
-891,546.50
0.00
0.00
-12,800.00
12,800.00
0.00
-12,800.00
0.00
0.00
&ecutive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 10
PORTFOLIO DETAIL
OCSGOOO I 0000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PlMCO
1,255, 164.34 DREYFUS TREASURY CASH MGMT l 5-Feb-2000 -] ,255, 164.34
996085247 I 5-Feb-2000 1,255,164.34
B 0.00
LONG TERM OPER-PIMCO
1,255,164.34 DREYFUS TREASURY CASH MGMT 15-Feb-2000 -t,255,164.34
996085247 15-Feb-2000 0.00
FC 15-Feb-2000 0.00
LONG TERM OPER·PlMCO
I 0,400,000.00 FEDBRAL NATL MTG ASSN DISCOU l 5-Feb-2000 -10,292,778.89
313588VV4 MAT 04/20/2000 15-Feb-2000 10,292, 778.89
B GOLDMAN SACHS & CO, NY 0.00
LONG TERM OPER-PIMCO
10,400,000.00 FEDERAL NATL MTG ASSN DISCOU 15-Feb-2000 -10,292, 778.89
313588VV4 MAT 04/20/2000 15-Feb-2000 0.00
FC GOLDMAN SACHS & CO, NY 15-Feb-2000 0.00
LIQUID C>PER-PIMCO
562.19 DREYFUS TREASURY CASH MGMT 16-Feb-2000 -562.19
996085247 l 6-Feb-2000 562.19
B 0.00
LIQUID OPER-PlMCO
562.19 DREYFUS TREASURY CASH MGMT 16-Feb-2000 -562.19
996085247 16-Feb-2000 0.00
FC 16-Feb-2000 0.00
LIQUID OPER·PIMCO
3,700,000.00 F'EDERAL HOME LN BK CONS DISC 16-Feb-2000 -3,699,437.81
3l3384TE9 MAT 02/ 17 /2000 16-Feb-2000 3,699,437.81
B LEHMAN GOVT SECS INC, NY 0.00
07-Mar-2000 8:57:19 Executive Workbench
OCSGOOOl 0000
OCSD-CONSOLlDATED
SHARES/PAR
SECURITY ID
TRANSCODE
200,000.00
313588TU9
B
3,700,000.00
313384TE9
FC
200,000.00
313588TU9
PC
14,000,000.00
98412CDH9
B
14,000,000.00
98412CDH9
FC
19,361.29
996085247
B
19,361.29
996085247
FC
07-Mar-2000 8:57:19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000-29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
FEDERAL NATL MTG ASSN DISCOU
MAT 03/0212000
MORGAN JP SECS -FIXED INCO
LIQUID OPER·PIMCO
FEDERAL HOME LN BK CONS DISC
MAT 02/17/2000
LEHMAN GOVT SECS INC, NY
LONG TERM OPER-PIMCO
FEDERAL NATL MTG ASSN DISCOU
MAT 03/021'1000
MORGAN J P SECS -FIXED INCO
LONG TERM OPER-PIMCO
XEROX CORP DISC
0411712000
GOLDMAN SACHS & CO, NY
LONG TERM OPER-PIMCO
XEROX CORP DISC
04/17/2000
GOLDMAN SACHS & CO, NY
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPERrPIMCO
DREYFUS TREASURY CASH MGMT
TRADE DATE/
SETTLDATE/
COJ.\'IPLDATE
16-Feb-2000
16-Feb-2000
16-Feb-2000
16-Feb-2000
16-Feb-2000
16-Feb-2000
I 6-Feb-2000
16-Feb-2000
l 6-Feb-2000
16-Feb-2000
16-Feb-2000
16-Feb-2000
l 6-Feb-2000
17-Feb-2000
l 7-Feb-2000
I 7-Feb-2000
17-feb-2000
17-Feb-2000
PAGE: 11
AMOUNT/
COST/
GAIN/LOSS
-199,528.33
199,528.33
0.00
-3,699,437.81
0.00
0.00
-199,528.33
0.00
0.00
-13,861,699.45
13,861,699.45
0.00
-13,861,699.45
0.00
0.00
-19,361.29
19,361.29
0.00
-19,361.29
0.00
0.00
Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 12
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOL/DATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LIQUID OPER-PIMCO
2,768.28 DREYFUS TREASURY CASH MGMT 17-Feb-2000 ·2,768.28
996085247 17-Feb-2000 2,768.28
13 0.00
LIQUID OPER-PIMCO
2,768.28 DREYFUS TREASURY CASH MGMT J 7-Feb-2000 ·2,768.28
996085247 17 -Feb-2000 0.00
FC 17-Feb-2000 0.00
LIQUID OPER-PlMCO
2,000,000.00 FEDERAL HOME LN BK CONS DISC l 7-Feb-2000 -1,997,493.33
313384TN9 MAT 02125/2000 l 7-Feb-2000 1,997,493.33
B LEHMAN GOVT SECS INC, NY 0.00
LONG TERM OPER-PIMCO
600,000.00 IBM DISC l 7-Feb-2000 -596,815.50
44922ACMO 03/2112000 l 7-Feb-2000 596,815.50
B MERRILL LYNCH PIERCE FENNER 0.00
LIQUID OPER-PIMCO
2,000,000.00 FEDERAL HOME LN BK CONS DISC 17-Feb-2000 -1,997,493.33
313384TN9 MAT 02125/2000 l 7-Feb-2000 0.00
PC LEHMAN GOVT SECS INC, NY 17-Feb-2000 0.00
LONG TERM OPER-PIMCO
600,000.00 IBM DISC 17-Feb-2000 -596,815.50
44922ACM0 03/21/2000 l 7-Peb-2000 0.00
FC MERRILL LYNCH PIERCE FENNER l 7-Feb-2000 0.00
LIQUID OPER-PIMCO
1,700,000.00 FEDERAL HOME LN BK CONS DISC l 7-Feb-2000 -1,699,738.39
313384TF6 MAT 02/1812000 INCOME AT MAT l 7-Feb-2000 1,699, 738.39
B LEHMAN GOVT SECS INC, NY 0.00
07-Mar-2000 8:57:19 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 13
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOLJDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LIQUID OPER-PIMCO
1,700,000.00 FEDERAL HOME LN BK CONS DISC l 7-Feb-2000 -l,699, 738.39
313384TF6 MAT 02/18/2000 INCOME AT MAT l 7-Feb-2000 0.00
PC LEHMAN GOVT SECS INC, NY 17-Feb-2000 0.00
WNG TERM OPER-P1MCO
62,286.76 DREYFUS TREASURY CASH MGMT 18-Feb-2000 ·62,286.76
996085247 18-Feb-2000 62,286.76
B 0.00
LONG TERM OPER-PIMCO
62,286.76 DREYFUS TREASURY CASH MGMT 18-Feb-2000 -62,286.76
996085247 18-Feb-2000 0.00
FC l 8-Feb-2000 0.00
LIQUID OPER·PIMCO
15,121.51 DREYFUS TREASURY CASH MGMT I 8-Feb-2000 -15,121.51
996085247 18-Feb-2000 15,121.51
B 0.00
LIQUID OPER-PTMCO
15, 121.51 DREYFUS TREASURY CASH MGMT 18-Feb-2000 -15,121.51
996085247 18-Feb-2000 0.00
PC 18-Feb-2000 0.00
LIQUID OPER-PIMCO
900,000.00 DAIMLERCHRYLSER DISC I 8-Feb-2000 -892,343.00
2338EODA1 04/1012000 18-Feb-2000 892,343.00
B MERJULLLYNCHPIERCEFBNNER 0.00
LIQUID OPER.-PIMCO
900,000.00 DAIMLERCHRYLSER DISC 18-Feb-2000 -892,343.00
2338EODAI 04/10/2000 18-Feb-2000 0.00
FC MERRILL LYNCH PIERCE FENNER l 8-Feb-2000 0.00
07-Mor-2000 8:57: 19 Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOUDATED
SHARES/PAR
SECURITY ID
TRANSCODE
I, 700,000.00
3l3384TRO
B
1,700,000.00
3l3384TRO
FC
42,725.50
996085247
B
42,725.50
996085247
FC
1,400,000.00
13443ACP8
B
1,400,000.00
13443ACP8
PC
71,337.27
996085247
B
07-Mar-2000 8:57:19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MA T02/28/2000
HSBC SECS INC, NEW YORK
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MA T02/28/2000
HSBC SECS INC, NEW YORK
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER·PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
CAMPBELL SOUP CO DISC
03/23/2000
CHASE SECURITIES, NEW YORK
LONG TERM OPER-PIMCO
CAMPBELL SOUP CO DISC
03/23/2000
CHASE SECURITIES, NEW YORK
LONG TERM OPER·PIMCO
DREYFUS TREASURY CASH MGMT
TRADE DATE/
SETILDATE/
COMPLDATE
18-Feb-2000
18-Feb-2000
18-Feb-2000
18-Feb-2000
18-Feb-2000
22-Feb-2000
22-Feb-2000
22-Feb-2000
22-Feb-2000
22-Feb-2000
23-Feb-2000
23-Feb-2000
23-Feb-2000
23-Feb-2000
23-Feb-2000
24-Feb-2000
24-Feb-2000
PAGE: 14
AMOUNT/
COST/
GAIN/LOSS
-l,697,355.56
1,697,355.56
0.00
-1,697,355.56
0.00
0.00
-42,725.50
42,725.50
0.00
-42,725.50
0.00
0.00
-1,393,526.56
1,393,526.56
0.00
-1,393,526.56
0.00
0.00
-71,337.27
71,337.27
0.00
Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: ']5
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
71,337.27 DREYFUS TREASURY CASH MGMT 24-Feb-2000 -71,337.27
996085247 24-Feb-2000 0.00
FC 24-Feb-2000 0.00
LONG TERM OPER-PIMCO
700,000.00 DAIMLERCHRYLSER DISC 24-Feb-2000 -694,776.44
2338EODA1 04/10/2000 24-Feb-2000 694,776.44
B MORGAN JP SECS -FIXED INCO 0.00
LONG TERM OPER-PIMCO
700,000.00 DAIMLERCHRYLSER DISC 24-Feb-2000 -694, 776.44
2338EODA1 04/10/2000 24-Feb-2000 0.00
FC MORGAN JP SECS -FIXED INCO 24-Feb-2000 0.00
LONG TERM OPER-PIMCO
3,600,000.00 ALUMINUM CO AMER DISC 24-Feb-2000 -3,589,632.00
02225ACEO 03/l4/2000 25-Feb-2000 J,589,632.00
B CHASE SECURITIES, NEW YORK 0.00
LONG TERM OPER-PlMCO
3,600,000.00 ALUMINUM CO AMER DISC 24-Feb-2000 -3,589,632.00
02225ACEO 03/14/2000 25-Feb-2000 0.00
FC CHASE SECURITIES, NEW YORK 25-Feb-2000 0.00
LIQUID OPER-PIMCO
25,507.11 DREYFUS TREASURY CASH MGMT 25-Feb-2000 -25,507.11
996085247 25-Feb-2000 25,507.l l
B 0.00
LIQUID OPER-PIMCO
25,507.11 DREYFUS TREASURY CASH MGMT 25-Feb-2000 -25,507.11
996085247 25-Feb-2000 0.00
FC 25-Feb-2000 0.00
07-Mar-2000 8:57:19 Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOLIDAIED
SHARESIPAR
SECURITY ID
TRANSCODE
2,000,000.00
313384TRO
B
2,000,000.00
313384TRO
FC
63,500,000.00
99366Wl33
B
63,500,000.00
99366Wl33
FC
3,729,418.27
996085247
B
3,729,418.27
996085247
FC
21,961.81
996085247
B
07-Mar-2000 8:57:19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
Ol-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MAT02/28/2000
LEHMAN GOVT SECS INC, NY
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MA T02/28/2000
LEHMAN GOVT SECS INC, NY
LIQUID OPER-PIMCO
LEHMAN BROTHERS REPO
05.560% 02/28/2000 DD 021251
LEHMAN BROS INC, NEW YORK
LrQUID OPER-PIMCO
LEHMAN BROTHERS REPO
05.560% 02/28/2000 DD 02/25/
LEHMAN BROS INC, NEW YORK
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
TRADE DATE/
SETTLDATE/
COMPLDATE
25-Feb-2000
25-Feb-2000
25-Feb-2000
25-Feb-2000
25-Feb-2000
25-Feb-2000
25-Feb-2000
25-Feb-2000
25-Feb-2000
25-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
PAGE: 16
AMOUNT/
COST/
GAIN/LOSS
-1,999,073.33
l,999,073.33
0.00
• 1,999,073.33
0.00
0.00
-63,500,000.00
63,500,000.00
0.00
-63,500,000.00
0.00
0.00
-3, 729,418.27
3,729,418.27
0.00
-3,729,418.27
0.00
0.00
-21,961.81
21,961.81
0.00
Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANS CODE
21,961.81
996085247
PC
63,500,000.00
99366W687
B
63,500,000.00
99366W687
PC
3,800,000.00
313384TS8
B
3,800,000.00
313384TS8
FC
258,457.01
996085247
B
258,457.01
996085247
FC
07-Mar-2000 8:57: 19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER·PIMCO
CREDIT SUISSE FST REPO
05.650% 02/29/2000 DD 02/28/
CREDIT SUISSE FIRST BOSTON C
LONG TERM OPER-PIMCO
CREDIT SUISSE PST REPO
05.650% 02/29/2000 DD 02/28/
CREDIT SUISSE FIRST BOSTON C
LIQUID OPER-P1MCO
FEDERAL HOME LN BK CONS DISC
MAT 02/29/2000
CREDIT SUISSE FIRST BOSTON C
LCQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MAT 02/29/2000
CREDIT SUISSE FIRST BOSTON C
LONG TERM OPER-PlMCO
DREYFUS TREASURY CASH MGMT
LONG JERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
TRADE DATE/
SEITLDATEt
COMPL DATE
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
29-Feb-2000
29-Feb-2000
29-Feb-2000
29-Feb-2000
29-Peb·2000
29-Feb-2000
PAGE; 17
AMOUNT/
COST/
GAIN/LOSS
-21,961.81
0.00
o.oo
-63,500,000.00
63,500,000.00
0.00
-63,500,000.00
0.00
0.00
-3,799,403.61
3,799,403.61
0.00
-3, 799,403.61
0.00
0.00
-258,457.01
258,457.0l
0.00
-258,457.01
0.00
0.00
Exectaive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 18
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-FEB-2000-29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LIQUID OPER-PIMCO
3,800,000.00 FEDERAL HOME LN BK CONS DISC 29-Feb-2000 -3, 799,396.22
313384IT6 MAT 03/01 /2000 29-Feb-2000 3,799,396.22
B MORGAN J P SECS • FIXED INCO 0.00
LCQUID OPER-PIMCO
3,800,000.00 FEDERAL HOME LN BK CONS orsc 29-Feb-2000 -3, 799,396.22
313384'11'6 MAT03/0l/2000 29-Feb-2000 0.00
PC MORGAN J P SECS -FIXED INCO 29-Feb-2000 o.oo
LIQUID OPER-PIMCO
1,300,000.00 FEDERAL HOME LN MTG CORP DIS 29-Feb-2000 -1,288,261.00
3l3396WA7 MAT 04/2512000 INCOME AT MAT 29-Feb-2000 1,288,261.00
B CREDIT SUISSE FIRST BOSTON C 0.00
LIQUID OPER-PIMCO
1,300,000.00 FEDERAL HOME LN MTG CORP DIS 29-Feb-2000 -1,288,261.00
3l3396WA7 MAT 04/2512000 lNCOME AT MAT 29-Feb-2000 0.00
FC CREDIT SUISSE FIRST BOSTON C 29-Feb-2000 0.00
LONG TERM OPER-PIMCO
7,000,000.00 GENERAL ELEC CAP DISC 29-Feb-2000 -6,907, 755.56
36959HEK9 05/19/2000 29-Feb-2000 6,907,755.56
B GENERAL ELECTRJC CAPTIAL COR 0.00
LONG TERM OPER-PlMCO
7,000,000.00 GENERAL ELEC CAP DISC 29-Feb-2000 -6,907,755.56
36959HEK9 05/19/2000 29-Feb-2000 0.00
FC GENERAL ELECTRIC CAPTIAL COR 29-Feb-2000 0.00
LONG TERM OPER-PIMCO
56,500,000.00 GOLDMAN SACHS LP REPO 29-Feb-2000 -56,500,000.00
99366Y204 05.600% 03/01/2000 DD 02/29/ 29-Feb-2000 56,500,000.00
B GOLDMAN SACHS & CO, NY 0.00
07-Mar-2000 8:57:19 F.xecutive Workbench
8 ORANGE COUNTY SANITATION DISTRICT PAG'E: 19
PORTFOLIO DETAIL
OCSGOOOJOOOO 01-FEB-2000 -29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETILDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
56,500,000.00 GOLDMAN SACHS LP REPO 29-Feb-2000 -56,500,000.00
99366Y204 05.600% 03/01/2000 DD 02/29/ 29-Feb-2000 0.00
FC GOLDMAN SACHS & CO, NY 29-Feb-2000 0.00
FIXED INCOME SECURITIES
LONG TERM OPER-PIMCO
6,250,000.00 COMMIT TO PUR GNMA SF MTG 11-Jan-2000 -5,609,375.00
01N060627 6.000% 02115no29 22-Feb-2000 0.00
FC GOLDMAN SACHS & CO, NY 22-Feb-2000 0.00
LONG TERM OPER-PIMCO
l 0,500,000.00 COMMIT TO PUR GNMA I SF MTG l l-Jan-2000 -9, 732, 187.50
01N062623 6.500% 02/22/2030 22-Feb-2000 0.00
FC MERRJLLLYNCHPIERCEFENNER 22-Feb-2000 0.00
LONG TERM OPER-PIMCO
J 1,000,000.00 COMMIT TO PUR GNMA I SF MTG l l-Jan-2000 -10,202,500.00
01N062623 6.500% 02/22/2030 22-Feb-2000 0.00
FC BEAR STEARNS & CO INC, NY 22-Feb-2000 0.00
LONG TERM OPER-PIMCO
730,000.00 COMMIT TO PUR FNMA SF MTG 20-Jan-2000 -713,346.88
11F011628 VAR RT 02/25/2029 23-Feb-2000 0.00
FC GOLDMAN SACHS & CO, NY 23-Feb-2000 0.00
LONG TERM OPER-PIMCO
900,000.00 FEDERAL HOME LN BK CONS BDS 21 -Jan-2000 -899,550.00
3133MAQJI 6. 750% 02/01/2002 DD 02/0VO Ol-Feb-2000 0.00
FC WARBURG DILLON READ LLC, NEW 0 l-Feb-2000 0.00
LONG TERM OPER-PIMCO
2,800,000.00 GNMA GTD REMIC TR 2000-9 f'H 24-Ja(l-2000 -2,800,000.00
3837H4NX9 VAR RT 02/16/2030 28-Feb-2000 2,800,000.00
B LEHMAN GOVT SECS INC, NY 0.00
07-Mar-2000 8:57:19 Executive Workbench
@ ORANGE COUNTY SANITATION DI.STRICT PAGE: 20
PORTFOLIO DETAIL
OCSGOOO I 0000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PlMCO
2,800,000.00 GNMA GTD REMIC TR 2000-9 PH 24-Jan-2000 -5,898.67
3837H4NX9 VAR RT 02/16/2030 28-Feb-2000 0.00
IB 0.00
LONG TERM OPER-PIMCO
2,800,000.00 GNMA GTD REMIC TR 2000-9 FH 24-Jan-2000 -2,805,898.67
3837H4NX9 VAR RT 02/16/2030 28-Feb-2000 0.00
FC LEHMAN GOVT SECS INC, NY 29-Feb-2000 0.00
LONG TERM OPER-PIMCO
2,500,000.00 lJ s TREASURY NOTES I Ol-Feb-2000 -2,376,392.50
9128275N8 06.000% 08/15/2009 DD 08/15/ l 5-May-2000 2,376,392.50
B Ll?.HMAN GOVT SECS INC, NY 0.00
LONG TERM OPER-PIMCO
2,500,000.00 U S TREASURY NOTES 01-Feb-2000 -37,087.91
9128275N8 06.000% 08/15/2009 DD 08/15/ 15-May-2000 0.00
IB 0.00
LONG TERM OPBR-PlMCO
2,500,000.00 US TREASURY NOTES 0 l-Feb-2000 -2,387,890.62
9128275N8 06.000% 08/15/2009 DD 08/ J 5/ 02-Feb-2000 2,387,890.62
B LEHMAN GOVT SECS INC, NY 0.00
LONG TERM OPER-PIMCO
2,500,000.00 U S TR.EASUR Y NOTES Ol-Feb-2000 -69,701.09
9128275N8 06.000% 08/15/2009 PD 08/15/ 02-Feb-2000 0.00
IB 0.00
LONG TERM OPER-PlMCO
2,500,000.00 US TREASURY NOTE~ Ol-Feb-2000 -2,457,591.71
9128275N8 06.000% 08/15/2009 DD 08/15/ 02-Feb-2000 0.00
FC LEHMAN GOVT SECS lNC, NY 02-Feb-2000 0.00
F.xec11tive Workbench
OCSGOOOJ 0000
OCSD-CONSOUDATED
SHARES/PAR
SECURITY ID
TRANSCODE
10,500,000.00
01N062631
B
11,000,000.00
01N062631
B
4,900,000.00
9128274Vl
B
4,900,000.00
9128274Vl
IB
4,900,000.00
9128274V1
FC
2,000,000.00
31359MFG3
B
2,000,000.00
31359MFG3 m
07-Mar-2000 8:57: 19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
COMMIT TO PUR GNMA I SF MTG
6.500% 03/15/2029
MERRILL LYNCH PIERCE FENNER
LONG TERM OPER-PIMCO
COMMIT TO PUR GNMA I SF MTG
6.500% 03/15/2029
BEAR STEARNS & CO INC, NY
LONG TERM OPER-PIMCO
U S TREASURY NOTES
04.750% 1111512008 DD 11/15/
GOLDMAN SACHS & CO, NY
LONG TERM OPER-PIMCO
US TREASURY NOTES
04.750% 1111512008 DD 11115/
LONG TERM OPER-PIMCO
US TREASURY NOTES
04.750% ll/15/2008 DD 11115/
GOLDMAN SACHS & CO, NY
LONG TERM OPER-PIMCO
FEDERAL NA TL MTG ASSN DEas
7.250% 01/15/2010 DD 1/14/20
MERRILLLYNCHPIERCEFENNER
LONG TERM OPER-PIMCO
FEDERAL NATL MTG ASSN DEBS
7.250% 01/15/2010 DD 1114120
TRADE DATE/
SETTLDATE/
COMPLDATE
02-Feb-2000
22-Mar-2000
02-Feb-2000
22-Mar-2000
03-Feb-2000
04-Feb-2000
03-Feb-2000
04-Feb-2000
03-Feb-2000
04-Feb-2000
04-Feb-2000
03-Feb-2000
04-Feb-2000
03-Peb-2000.
04-feb-2000
PAGE: 21
AMOUNT/
COST/
GAIN/LOSS
-9,699,375.00
9,699,375.00
0.00
-10,161,250.00
10,161,250.00
0.00
-4,316,057.20
4,316,057.20
0.00
-51,793.27
0.00
0.00
-4,367,850.47
0.00
0.00
-2,013,100.00
2,013,100.00
0.00
-8,055.56
0.00
0.00
Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 22
PORTFOLIO DETAIL
OCSGOOOJOOOO Ol-FEB-2000 -29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ S,EITLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
2,000,000.00 FEDERAL NATL MTG ASSN DEBS 03-Feb-2000 -2,021,155.56
31359MFG3 7.250% Ol/15/2010 DD l/14/20 04-Feb~2000 0.00
FC MERRlLLLYNCHPJERCEFENNER 04-Feb-2000 0.00
LONG TERM OPER-PJMCO
2,500,000.00 US TREASURY NOTES 08-Feb-2000 -2,392, 187.50
9128275N8 06.000% 08/15/2009 DD 08/15/ 09-Feb-2000 2,392,187.50
B LEHMAN GOVT SECS INC, NY 0.00
LONG TERM OPER-PIMCO
2,500,000.00 US TREASURY NOTES 08-Feb-2000 -12,554.35
9128275N8 06.000% 08/15/2009 DD 08/15/ 09-Feb-2000 0.00
1B 0.00
LONG TERM OPER-PIMCO
2,500,000.00 U S TREASURY NOTES 08-Feb-2000 -2,464, 741.85
9128275N8 06.000% 08/15/2009 DD 08/15/ 09-Feb-2000 0.00
FC LEHMAN GOVT SECS INC, NY 09-Feb-2000 0.00
LONG TERM OPER-PIMCO
2,800,000.00 U S TREASURY NOTES 08-Feb-2000 -2,445, I 87.50
9128274Vl 04.750% 11/15/2008 DD 11115/ 09-Feb-2000 2,445,187.50
B GOLDMAN SACHS & CO, NY 0.00
LONG TERM OPER-PJMCO
2,800,000.00 US TREASURY NOTES 08-Feb-2000 -31,423.08
9128274Vl 04.750% 11115/2008 DD 11/15/ 09-Feb-2000 0.00
lB 0.00
LONG TERM OPER-PIMCO
2,800,000.00 US TREASURY NOTES 08-Feb-2000 -2,476,610.58
9128274VI 04.750% 11/15/2008 DD 11/15/ 09-Feb-2000 0.00
FC GOLDMAN SACHS & CO, NY 09-Feb-2000 0.00
07-Mar-2000 8:57:19 Executive Workbench
8 ORANGE COUNTY SANITATION DISTRICT PAG'E: ~3
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOUDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
6,250,000.00 COMMIT TO PUR GNMA SF MTG 14-Feb-2000 -S,593,750.00
01N060635 6.000% 03/15/2029 22-Mar-2000 5,593,750.00
B GOLDMAN SACHS & CO, NY 0.00
LONG TERM OPER-PIMCO
340,811.80 FHLMC GROUP #78-6064 18-Feb-2000 -332,504.51
31348SWZ3 6.384% 01/01/2028 DD 12/01/ 24-Feb-2000 332,504.51
B AMHERST, HOUSTON 0.00
LONG TERM OPER-PIMCO
340,811.80 FHLMC GROUP #78-6064 18-Feb-2000 -1,381.78
31348SWZ3 6.384% 01/01/2028 DD 12/01/ 24-Feb-2000 0.00
1B 0.00
LONG TERM OPER-PIMCO
340,811.80 FHLMC GROUP #78-6064 18-Feb-2000 -333,886.29
31348SWZ3 6.384% Ol/Ol/2028 DD 12/01/ 24-Feb-2000 0.00
FC AMHERST, HOUSTON 24-Feb-2000 0.00
LONG TERM OPER-PIMCO
2, 100,000.00 FEDERAL NATL MTG ASSN DEBS 22-Feb-2000 -2,008,440.00
31359MEY5 6.625o/o 09/15/2009 DD 09/01/9 23-Feb-2000 2,008,440.00
B MERRlLLLYNCHPIERCEFENNER 0.00
LONG TERM OPER-PIMCO
2, I 00,000.00 FEDERAL NATL MTG ASSN DEBS 22-Feb-2000 -66,470.83
31359MEY5 6.625% 09/15/2009 DD 09/01/9 23-Feb-2000 0.00
IB 0.00
LONG TERM OPER-PIMCO
2,100;000.00 FEDERAL NATL MTG ASSN DEBS 22-Feb-2000 -2,074,910.83
31359MEY5 6.625% 09/15/2009 DD 09/01/9 23-Feb-2000 0.00
FC MERRILL LYNCH PIERCE FENNER 23-Feb-2000 0.00
Ol-Mar-2000 8:57:19 Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOLIDATED
PA YUPS
SHARES/PAR
SECURITY ID
TRANSCODE
25,000,000.00
912827Z62
B
25,000,000.00
912827Z62
IB
3,000,000.00
209IllCU5
B
3,000,000.00
209111CU5
IB
FIXED INCOME SECURITIES
20.00
9128275W8
PU
20.00
9128275W8
FC
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PlMCO
U S TREASURY NOTES
06.500% 10/15/2006 DD 101151
MORGAN STANLEY & CO INC, NY
LONG TERM OPER-PIMCO
US TREASURY NOTES
06.500% I0/1512006 DD 10/l 5/
LONG TERM OPER-PfMCO
CONSOLIDATED EDISON N Y OcBS
FLTG RT 06/1512002 DD 06/20/
MEIUULL. LYNCH PlERCE FENNER
LONG TERM OPER-PTMCO
CONSOLIDATED EDISON N Y DEBS
FLTG RT06/l.5/2002 DD 061101
LONG TERM OPER-PIMCO
US TREASURY INFLATlON lNDEX
4.250%001/1512010 DD 01115/
LONG TERM OPER-PIMCO
US TREASURY INFLATION lNDE~
4.250%001/15/2010 DD 01/15/
TRADE DATE/
SETILDATE/
COMPLDATE
28-Feb-2000
Ol-Mar-2000
28-Feb-2000
01-Mar-2000
29-Feb-2000
02-Mar-2000
29-Feb-2000
02-Mar-2000
15-Jan-2000
15-Jan-2000
I 5-Jan-2000
l 5-Jan-2000
29-Feb-2000
PAGE:
AMOUNT/
COST/
GAIN/LOSS
-24,837,890.63
24,837,890.63
0.00
-612,704.92
0.00
0.00
-2,994,300.00
2,994,300.00
0.00
-40,178.13
0.00
0.00
-20.00
20.00
0.00
-20.00
0.00
0.00
Exem1live Workbench
OCSGOOO I 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
200.00
9128272M3
PU
200.00
9128272M3
FC
140.00
9128273A8
PU
140.00
9128273A8
FC
22.50
3133TCE95
PU
22.50
3133TCE95
FC
11,932.80
3133Tl7A4
PU
07-Mar-2000 8:57: 19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
Ol-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
US TREASURY INFLATJON INDEX
3.375% 01/15/2007 DD 01/15/
LONG TERM OPER-PIMCO
US TREASURY INFLATION INDEX
3.375% OJ/1512007 DD 01115/
LONG TERM OPER-PIMCO
US TREASURY INFLATION INDEX
3.625% 07/15/2002 DD 07/15/
LONG TERM OPER-PIMCO
US TREASURY INFLATION INDEX
3.625% 07/15/2002 DD 07/15/
LONG TERM OPER-PIMCO
FHLMC MULTI CLASS CTF E3 A
6.324% 08/15/2032
LONG TERM OPER·PIMCO
FHLMC MULTICLASS CTP E3 A
6.324% 08115/2032
LONG JERM OPER-PIMCO
FHLMC MULTICLASS CTF SER 162
6.000% 11/15/2023 DD 11/01/9
TRADE DATE/
SETTLDATE/
COMPLDATE
l 5-Jan-2000
l 5-Jan-2000
15-Jan-2000
l 5-Jan-2000
29-feb-2000
15-Jan-2000
l 5-Jan-2000
15-Jan-2000
l 5-Jan-2000
29-Feb-2000
Ol-Feb-2000
Ol-Feb-2000
01-Feb-2000
OJ-Feb-2000
15-Feb-2000
Ol-Feb-2000
0 l-Feb-2000
PAGE: 25
AMOUNT/
COST/
GAIN/LOSS
-200.00
200.00
0.00
-200.00
0.00
0.00
-140.00
140.00
0.00
-140.00
0.00
0.00
-22.50
22.50
0.00
-22.50
0.00
0.00
-l l,932.80
11,932.80
0.00
Exeet1tive Workbench
@ II ORANGE COUNTY SANITATION DISTRICT PAGE: 26
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
11 ,932.80 FHLMC MULTICLASS CTF SER 162 Ol-Feb-2000 -ll,932.80
3133Tl7A4 6.000% 11 /15/2023 DD ll/01/9 Ol-Feb-2000 0.00
PC 15-Feb-2000 0.00
SALES
CASH & CASH EQUIVALENTS
LONG TERM OPER-PIMCO
-2,585,831.44 DREYFUS TREASURY CASH MGMT 03-Feb-2000 2,585,831.44
996085247 03-Feb-2000 -2,585,831.44
s 0.00
LONG TERM OPER·PIMCO
-2,585,83 1.44 DREYFUS TREASURY CASH MGMT 03-Feb-2000 2,585,83 1.44
996085247 03-Feb-2000 0.00
FC 03-Feb-2000 0.00
LIQUID OPER-PIMCO
-80,065.48 DREYFUS TREASURY CASH MGMT 03-Feb-2000 80,065.48
996085247 03-Feb-2000 -80,065.48
s 0.00
LIQUID OPER·PIMCO
-80,065.48 DREYFUS TREASURY CASH MGMT 03-Feb-2000 80,065.48
996085247 03-Feb-2000 0.00
FC 03-Feb-2000 0.00
LIQUID OPER-PIMCO
-900,000.00 FLORIDA PWR CORP DISC 03-Feb-2000 890,448.00
34ltOAB93 02/09/2000 03-Feb-2000 -890,448.00
s MERRJLL LYNCH PIERCE FENNER 0.00
07-Mar-2000 8:57:19 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT 11 PAGE: 27
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-FEB-2000-29-FEB-2000
OCSD-CONSOLIDATED
SllARES/P AR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LIQUID OPER-PIMCO
-900,000.00 FLORJDA PWR CORP DISC 03-Feb-2000 8,689.50
341 10AB93 02/09/2000 03-Feb-2000 0.00
IS 0.00
LIQUID OPER-PIMCO
-900,000.00 FLORIDA PWR CORP DISC 03-Feb-2000 899,137.50
34110AB93 02/09/2000 03-Feb-2000 0.00
FC MERRJLL LYNCH PIERCE FENNER 03-Feb-2000 0.00
LIQUID OPER-PIMCO
-2,500,000.00 FEDERAL NATL MTG ASSN DISC 03-Feb-2000 2,485,301.39
313588SX4 02/10/2000 03-Feb-2000 -2,485,301.39
s HSBC SECS INC, NEW YORK 0.00
LIQUID OPER-PIMCO
-2,500,000.00 FEDERAL NATL MTG ASSN DISC 03-Feb-2000 11,961.80
313588SX4 02/10/2000 03 -Feb-2000 0.00
IS 0.00
LIQUID OPER-PIMCO
-2,500,000.00 FEDERAL NATL MTG ASSN DISC 03 -Feb-2000 2,497,263.19
313588SX4 02/10/2000 03 -Feb-2000 0.00
FC HSBC SECS INC, NEW YORK 03-Feb-2000 0.00
LIQUID OPER-PIMCO
-700,000.00 FEDERAL HOME LN MTG CORP DJS 03 -Feb-2000 697,861. 11
313396SV6 MAT 02/08/2000 03-Feb-2000 -697,861.1 1
s HSBC SECS INC, NEW YORK 0.00
LIQUID OPER-PIMCO
-700,000.00 FEDERAL HOME LN MTG CORP DIS 03-Feb-2000 1,592.50
313396SV6 MAT 02/08/2000 03-Peb-2000 0.00
IS 0.00
07-Mar-2000 8:57:19 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 28
PORTFOLIO DETAIL
OCSGOOO 10000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOL!DATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LIQUID OPER-PTMCO
-700,000.00 FEDERAL HOME LN MTG CORP DIS 03-Feb-2000 699,453.61
3l3396SV6 MAT 02/08/2000 03-Feb-2000 0.00
FC HSBC SECS INC, NEW YORK 03-Feb-2000 0.00
LIQUID OPER-PlMCO
-1,239.38 BSDT-LATE MONEY DEPOSIT ACCT 04-Feb-2000 l,239.38
996087094 04-Feb-2000 -1,239.38
s 0.00
LONG TERM OPER-PIMCO
-7,323.77 BSDT-LATE MONEY DEPOSIT ACCT 04-Feb-2000 7,323.77
996087094 04-Feb-2000 -7,323.77
s 0.00
LONG TERM OPER-PIMCO
-J,100,000.00 FEDERAL NATL MTG ASSN DISC N 04-Feb-2000 1,097,488.33
313588SW6 MAT 02/09/2000 04-Feb-2000 -1 ,097,488.33
s MORGAN JP SECS -FIXED INCO 0.00
LONG TERM OPER-PIMCO
-1,100,000.00 FEDERAL NATL MTG ASSN DISC N 04-Feb-2000 1,648.48
313588SW6 MAT 02/09/2000 04-Feb-2000 0.00
IS 0.00
LONG TERM OPER-PIMCO
-l,100,000.00 FEDERAL NATL MTG ASSN DISC N 04-Feb-2000 1,099,136.81
313588SW6 MAT 02/09/2000 04-Feb-2000 0.00
FC MORGAN J P SECS -FIXED INCO 04-Feb-2000 0.00
LONG TERM OPER-PIMCO
-4,400,000.00 FEDERAL HOME MTG MTG CORP DI 04-Feb-2000 4,366,208.00
313396UP6 MAT 03/21/2000 04-Feb-2000 -4,366,208.00
s MORGAN JP SECS -FIXED INCO 0.00
07-Mar-2000 8:57: 19 Executive Workbench
8 ORANGE COUNTY SANITATION DISTRICT II PAGE: '29
PORTFOLIO DETAIL
OCSGOOO 10000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
-4,400,000.00 FEDERAL HOME MTG MTG CORP DI 04-Feb-2000 1,745.33
313396UP6 MAT 0312112000 04-Feb-2000 0.00
IS 0.00
LONG TERM OPER-PIMCO
-4,400,000.00 FEDERAL HOME MTG MTG CORP DI 04-Feb-2000 4,367,953.33
313396UP6 MAT 03/2112000 04-Feb-2000 0.00
FC MORGAN J P SECS -FIXED INCO 04-Feb-2000 o.oo
LONG TERM OPER-PIMCO
-2,298,498.67 DREYFUS TREASURY CASH MdMT 07-Feb-2000 2l298,498.67
996085247 07-Feb-2000 -2,298,498.67
s 0.00
LONG TERM OPER-PIMCO
-2,298,498.67 DREYFUS TREASURY CASH MGMT 07-Feb-2000 2,298,498.67
996085247 07-Feb-2000 o.oo
FC 07-Feb-2000 0.00
LONG TERM OPER-PIMCO
-2,300,000.00 LEHMAN BROTHERS REPO 08-Feb-2000 2,300,000.00
99366F650 05.610% 02/08/2000 DD 02/07/ 08-Feb-2000 -2,300,000.00
s LEHMAN BROS INC, NEW YORK 0.00
LONG TERM OPER-PIMCO
-2,300,000.00 LEHMAN BROTHERS REPO 08-Feb-2000 358.42
99366F650 05.610% 02/08/2000 DD 02/07/ 08-Feb-2000 0.00
IS 0.00
LONG TERM OPER-PIMCO
-2,300,000.00 LEHMAN BROTHERS REPO 08-Feb-2000 2,300,358.42
99366F650 05.610% 02/08/2000 DD 02/07/ 08-Feb-2000 0.00
FC LEHMAN BROS INC, NEW YORK 08-Peb-2000 0.00
07-Mar-2000 8:57: 19 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 30
PORTFOLIO DETAIL
OCSGOOO 10000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION .DESCRIPTION/ SETIL .DA TE/ COST/
TRANSCO.DE BROKER COMPL.DATE GAIN/LOSS
LONG TERM OPER-PIMCO
-53,093.38 DREYFUS TREASURY CASH MGMT t 6-Feb-2000 53,093.38
996085247 16-feb-2000 -53,093.38
s 0.00
LONG TERM OPER-PJMCO
-53,093.38 DREYFUS TREASURY CASH MGMT 16-Feb-2000 53,093.38
996085247 l 6-Feb-2000 0.00
PC 16-Feb-2000 0.00
LONG TERM OPER-PIMCO
-1,454,538.44 DREYFUS TREASURY CASH MGMT 23-Feb-2000 1,454,538.44
996085247 23-Feb-2000 -1,454,538.44
s 0.00
LONG TERM OPER-PIMCO
-1,454,538.44 DREYFUS TREASURY CASH MGMT 23-Feb-2000 1,454,538.44
996085247 23-Feb-2000 0.00
FC 23-Feb-2000 0.00
LONG TERM OPER-PIMCO
-65,536.33 DREYFUS TREASURY CASH MGMT 25-Feb-2000 65,536.33
996085247 25-Feb-2000 -65,536.33
s 0.00
LONG TERM OPER-PIMCO
-65,536.33 DREYFUS TREASURY CASH MGMT 25-Feb-2000 65,536.33
996085247 25-Feb-2000 0.00
FC 25-Feb-2000 0.00
LIQUID OPER-PIMCO
-63,500,000.00 LEHMAN BROTHERS REPO 28-Feb-2000 63,500,000.00
99366W133 05.560% 02/28/2000 DD 02/25/ 28-Feb-2000 -63,500,000.00
s LEHMAN BROS INC, NEW YORK 0.00
07-Mar-2000 8:57: 19 Executive Workbench
OCSGOOO 10000
OCSD-CONSOLLDATED
SHARES/PAR
SECURITY ID
TRANSCODE
-63,500,000.00
99366W133
IS
-63,500,000.00
99366Wl33
FC
-2,800,000.00
313396TZ6
s
-2,800,000.00
313396TZ6
JS
-2,800,000.00
313396TZ6
FC
-3,858,584.64
996085247 s
-3,858,581.M
996085247
FC
07-Mar-2000 8:57:19
"•~HU.l!I \...VU!~ 1 l'. :SANlTA UUN UUSJ.KICJ
PORTFOLIO DETAIL
01-FEB-2000-29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LIQUID OPER-PIMCO
LEHMAN BROTHERS REPO
05.560% 02128/2000 DD 02/25/
LIQUID OPER-PIMCO
LEHMAN BROTHERS REPO
05.560% 02/28/2000 DD 02125/
LEHMAN BROS INC, NEW YORK
LONG TERM OPER-PIMCO
FEDERAL HOME LN MTG CORP DIS
MAT 03/07/2000
HSBC SECS INC, NEW YORK
LONG TERM OPER-PlMCO
FEDERAL HOME LN MTG CORP ms
MAT 03/07 /2000
LONG TERM OPER•PIMCO
FEDERAL HOME LN MTG CORP DIS
MAT 03107/2000
HSBC SECS INC, NEW YORK
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
TRADE DATE/
SETTLDATE/
COMPLDATE
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
28-Feb-2000
29-Feb-2000
29-Feb-2000
29-Feb-2000
29-Feb-2000
29-Feb-2000
• PAGE:· 3
AMOUNT1
COST/
GAIN/LOSS
29,421.67
0.00 o.oo
63,529,421.67
0.00
0.00
2,787,695.55
-2, 787,695.55
0.00
8,788.89
0.00
0.00
2, 796,484.44
0.00
0.00
3,858,584.64
-3,858,584.64
0.00
3,858,584.64
0.00
0.00
E"Cecutf\Je Workbench
@ ORANGE COUNTY SANITATION DISl'RICT PAGE: 32
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
-63,500,000.00 CREDIT SUISSE FST REPO 29-Feb-2000 63,500,000.00
99366W687 05.650% 02/29/2000 DD 02/28/ 29-Feb-2000 -63,500,000.00 s CREDIT SUISSE FlRST BOSTON C 0.00
LONG TERM OPER-PIMCO
-63,500,000.00 CREDIT SUISSE PST REPO 29-Feb-2000 9,965.97
99366W687 05.650% 02/29/2000 DD 02/28/ 29-Feb-2000 0.00
IS 0.00
LONG TERM OPER-PIMCO
-63,500,000.00 CREDIT SUISSE FST REPO 29-Feb-2000 63,509,965.97
99366W687 05.650% 0212912000 DD 02/28/ 29-Feb-2000 0.00
PC CREDIT SUISSE FIRST BOSTON C 29-Feb-2000 0.00
FIXED JNCOME SECURITIES
LONG TERM OPER-PIMCO
-730,000.00 COMMIT TO PUR FNMA SF MTG 28-Jan-2000 708,100.00
llFOI 1628 VAR RT 02/25/2029 23-Feb-2000 0.00
FC GOLDMAN SACHS & CO, NY 23-Feb-2000 0.00
LONG TERM OPER-PIMCO
-2,500,000.00 U S TREASURY NOTES 01-Feb-2000 2,389,062.50
9!28275N8 06.000% 08/15/2009 DD 08/l 5/ 02-Feb-2000 -2,379,202.17
s LEHMAN GOVT SECS INC, NY 9,860.33
LONG TERM OPER-PIMCO
-2,500,000.00 US TREASURY NOTES 01-Feb-2000 69,701.09
9128275N8 06.000% 08/15/2009 DD 08/15/ 02-Feb-2000 0.00
IS 0.00
LONG TERM OPER-PIMCO
-2,500,000.00 US TREASURY NOTES 01-Feb-2000 2,458;763.59
9128275N8 06.000o/o 08/15/2009 DD 081151 02-Feb-2000 0.00
FC LEHMAN GOVT SECS INC, NY 02-Feb-2000 0.00
07-Mar-2000 8:57: 19 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 33
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-FEB-2000-29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECUlUTY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
-2,800,000.00 US TREASURY NOTES 01-Feb-2000 2,442,487.60
9128274Vl 04.750% 11/15/2008 DD 11/15/ 02-Feb-2000 -2,4i9,218.75
s LEHMAN GOVT SECS INC, NY 13,268.85
LONG TERM OPER-PIMCO
-2,800,000.00 U $TREASURY NOTES 01-Feb-2000 28,865.38
9128274Vl 04.750% 11/15/2008 DD 11/15/ 02-Peb-2000 0.00
IS 0.00
LONG TERM OPER-PIMCO
-2,800,000.00 US T.REASUR Y NOTES 0 l ·Feb-2000 2;471,352.98
9128274Vl 04.750% 11/15/2008 DD J l/15/ 02-Feb-2000 0.00
FC LEHMAN GOVT SECS INC, NY 02-Feb-2000 0.00
LONG TERM OPER-PIMCO
-10,500,000.00 COMMIT TO PUR GNMA 1 SF MTG 02-Feb-2000 9,712,500.00
01N062623 6.500% 02/22/2030 22-Feb-2000 -9,735,545.06
s MERRILL LYNCH PIERCE FENNER -23,045.06
LONG TERM OPER-PIMCO
-10,500,000.00 COMMIT TO PUR GNMA I SF MTG 02-Feb-2000 9,712,500.00
OJN062623 6.500% 02/22/2030 22-Feb-2000 0.00
FC MERRILLLYNCHPIBRCEFENNER 22-Feb-2000 0.00
LONG TERM OPER-PIMCO
-11,000,000.00 COMMIT TO PUR GNMA I SF MTG 02-Feb-2000 10, 175,000.00
OJN062623 6.500% 02/22/2030 22-Feb-2000 -10, 199, 142.44
s BEAR STEARNS & CO INC, NY -24,142.44
LONG TERM OPER-PIMCO
-11,000,000.00 corvtMIT TO PUR GNMA 1 SF MTG 02-Feb-2000 10,175,000.00
OIN062623 6.500% 02122/2030 22-Feb-2000 0.00
FC BEAR STEARNS & CO INC, NY 22-Feb-2000 0.00
07-Mar-2000 8:57: 19 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 34
PORTFOLIO DETAIL
OCSGOOO 10000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
-1 ,200,000.00 U S TREASURY NOTES 03-Feb-2000 1,160,625.00
9128275N8 06. 000% 08/ 15/2009 DD 08/ l 5/ 04-Feb-2000 -I , 142,017.04 s GOLDMAN SACHS & CO, NY 18,607.96
LONG TERM OPER-PlMCO
-1,200,000.00 US TREASURY NOTES 03-Feb-2000 33,847.83
9128275N8 06.000% 08/ 15/2009 DD 08/15/ 04-Feb-2000 0.00
IS 0.00
LONG TERM OPER-PIMCO
-1,200,000.00 U S TREASURY NOTES 03-Feb-2000 l,194,472.83
9128275N8 06.000% 08(15/2009 DD 08/15/ 04-Feb-2000 0.00
PC GOLDMAN SACHS & CO, NY 04-Feb-2000 0.00
LONG TERM OPER-PIMCO
-2,000,000.00 US TREASURY NOTES 03-Feb-2000 1,944,375.00
9J28275N8 06.000% 08/15/2009 DD 08/15/ 04-Feb-2000 -1,903,361.74
s GOLDMAN SACHS & CO, NY 41,013.26
LONG TERM OPER-PIMCO
-2,000,000.00 US TREASURY NOTES 03-Feb-2000 56,413.04
9128275N8 06.000% 08/15/2009 DD 08/15/ 04-Feb-2000 0.00
IS 0.00
LONG TERM OPER-PIMCO
-2,000,000.00 US TREASURY NOTES 03-Feb-2000 2,000,788.04
9128275N8 06.000% 08/15/2009 DD 08/15/ 04-Feb-2000 0.00
FC GOLDMAN SACHS & CO, NY 04-Feb-2000 0.00
LONG TERM OPBR·PIMCO
-2,500,000.00 US TREASURY NOTES 08-Feb•2000 2,391,406.25
9128275N8 06.000% 08/15/2009 DD 08/15/ 09-Feb-2000 -2,379,202.17
s GOLDMAN SACHS & CO, NY 12,204.08
07-Mar-2000 8:57:19 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 35
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-FEB-2000-29-FEB-2000
OCSD·CONSOLLDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECUR.ITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
-2,500,000.00 US TREASURY NOTES 08-Feb-2000 72,554.35
9128275N8 06.000% 08/15/2009 DD 08/15/ 09-Feb-2000 0.00
IS 0.00
LONG TERM OPElt-PLMCO
-2,500,000.00 U S TREASURY NOTES 08-Feb-2000 2,463,960.60
9128275N8 06.000% 08/1512009 DD 08/15/ 09-Feb-2000 0.00
FC GOLDMAN SACHS & CO, NY 09-Feb-2000 0.00
LONG TERM OPER-PlMCO
-2,500,000.00 u s TREAS UR y NOTES I 08-Feb-2000 2,380,110.00
9128275N8 06.000% 0811512009 DD 08/15/ 15-May-2000 -2,392, 187.50 s LEHMAN GOVT SECS INC, NY -12,077.50
LONG TERM OPER-PIMCO
-2,500,000.00 US TREASURY NOTES 08-Feb-2000 37,087.91
9128275N8 06.000% 08115/2009 DD 08/ l 5/ l5·May·2000 0.00
IS 0.00
LONG TERM OPER-PIMCO
-6,250,000.00 COMMIT TO PUR GNMA SF MTG t 4-Feb-2000 5,600,341.80
01N060627 6.000% 02/15/2029 22-Feb-2000 -5,609,375.00 s GOLDMAN SACHS & CO, NY -9,033.20
LONG TERM OPER-PIMCO
-6,250,000.00 COMMIT TO PUR GNMA SF MTG 14-Feb-2000 5,600,341.80
01N060627 6.000% 02/15/2029 22-Feb-2000 0.00
FC GOLDMAN SACHS & CO, NY 22-Feh-2000 0.00
LONG TERM OPER-PIMCO
-2,000,000.00 FEDERAL NA1L MTG ASSN DEBS 22-Feb-2000 2,003,437.50
31359MFG3 7.250%01/15/2010 DD i/l4/20 23-Feb-2000 -2,013,100.00
s MERRILL LYNCH PIERCE FENNER -9,662.50
--.. , "'""n o .. c7 .10 Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOLIDATED
SllMU:S/PAR
SECURITY ID
TRANSCODE
-2,000,000.00
31359MFG3
IS
-2,000,000.00
31359MFG3
FC
PRINCIPAL PAYMENTS
FIXED INCOME SECURITIES
52,499,50
3133TCE95
PDC
-52,522.00
3133TCE95
PD
-52,522.00
3133TCE95
FC
-39,873.05
3128DDQ55
PD
07-Mar-2000 8:57; 19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
FEDERAL NATL MTG ASSN DEBS
7.250% 01/1512010 DD 1114/20
LONG TERM OPER-PIMCO
FEDERAL NA TL MTG ASSN DEBS
7.250% 01/15/2010 DD 1/14/20
MERRILL LYNCH PIERCE FENNER
LONG TERM OPER-PIMCO
FHLMC MULTICLASS CTF E3 A
6.324% 08/15/2032
LONG TERM OPER-PIMCO
FHLMC MULTICLASS CTF E3 A
6.324% 08/15/2032
LONG TERM OPER~PIMCO
FHLMC MULTICLASS CTF E3 A
6.324% 08/15/2032
LONG TERM OPER-PIMCO
FHLMC GROUP #GS-0476
7.000% 02/01/2003 DD 02/0I/
TRADE DATE/
SETTLDATE/
COMPLDATE
22-Feb-2000
23-Feb-2000
22-Feb-2000
23-Feb-2000
23-Feb-2000
Ol-Jan-2000
01-Jan-2000
Ol-Jan-2000
01-Jan-2000
01-Jan-2000
Ol-Jan-2000
15-Feb-2000
0 l-Peb-2000
01-Feb-2000
II PAGE: 36
AMOUNT/
COST/
GAIN/LOSS
15,708.33
0.00
0.00
2,019,145.83
0.00
0.00
-52,499.50
52,556.92
57.42
52,522.00
-52,579.44
-57.44
52,522.00
0.00
0.00
39,873.05
-40,496.07
-623.02
Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 37
PORTFOLIO DETAIL
OCSGOOO J 0000 Ol-FEB-2000 -29-FEB-2000
OCSD-CONSOUDATED
SHARES/PAR TRADEDATEf AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
-39,873.05 FH.LMC GROUP#G5-0476 Ol-Feb-2000 39,873.05
3128DDQ55 7.000% 02/0 I /2003 DD 02/0 l/ 01 ~Feb-2000 0.00
FC l 5-Feb-2000 0.00
LONG TERM OPER-PIMCO
-38,194.95 FHLMC MULTICL MTG P/C 1574 E Ol-Feb-2000 38,194.95
3133T02D5 5.900% 06/15/2017 Ol-Feb-2000 -38,141.24
PD 53.71
LONG TERM OPER-PIMCO
-38,194.95 FHLMC MULTICL MTG P/C 1574 E 01-Feb-2000 38,194.95
3133T02D5 5.900% 06/15/2017 01-Feb-2000 0.00
FC l 5-Feb-2000 0.00
LONG TERM OPER-PIMCO
-32,928.60 GNMA II POOL #0080023 Ol-Feb-2000 32,928.60
36225CAZ9 6.125% 12/20/2026 DD 12/01/ Ol-Feb-2000 -33,473.98
PD -545.38
LONG TERM OPER-PIMCO
-32,928.60 GNMA II POOL #0080023 0 I-Feb-2000 32,928.60
36225CAZ9 6.125% 1212012026 DD 12/01/ Ot-Feb-2000 0.00
FC 22-Feb-2000 0.00
LONG TERM OPER-PIMCO
-34,299.89 GNMA II POOL #080088M 01-Feb-2000 34,299.89
36225CC20 VAR RT 06/20/2027 DD 06/01/9 01-Feb-2000 -35,050.20
PD -750.31
LONG TERM OPER-PIMCO
-34,299.89 GNMA II POOL #080088M Ol-Feb-2000 34,299.89
36225CC20 VAR RT 06/20/2027 DD 06/01/9 01-Feb-2000 0.00
FC 22-Feb-2000 0.00
07-Mar-2000 8:57: 19 Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
-7,934.60
3137IHU48
PD
-7,934.60
3l371HU48
FC
-46,853.50
3133TCE95
PD
-558.80
302998GE3
PD
-16,231.80
3935052Y7
PD
-16,231.80
3935052Y7
FC
-7,822.09
31677EAA4
PD
07-Mar-2000 8:57:19
r:: ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
FNMA POOL #0252703
6.500% 09/01/2006 DD 08/01/
LONG TERM OPER-PlMCO
FNMA POOL #0252703
6.500% 09/01/2006 DD 08/01/
LONG TERM OPER-PIMCO
FHLMC MULTICLASS CTF E3 A
6.324% 08/15/2032
LONG TERM OPBR-PIMCO
WMP/HUNTOON PAIGE #000-11150
7.500% 12/01/2030 DD 10/21/9
LONG TERM OPER-PIMCO
GREEN TREE CORP 99-D CL A-1
6.290% 10/1512013 DD 0812619
LONG TERM OPER-PIMCO
GREEN TREE CORP 99-D CL A-1
6.290% 10/15/2013 DD 08/26/9
LONG TERM OPER-PIMCO
FIFTH THIRD BK AUTO TR 96A C
6.200% 09/01/2001DD03/15/9
TRADE DATE/
SETTLDATE/
COMPLDATE
Ol-Feb-2000
Ol-Feb-2000
01-Feb-2000
Ol-Feb-2000
25-Feb-2000
01-Peb-2000
Ol-Feb-2000
Ol-Feb-2000
Ol-Feb-2000
15-Feb-2000
15-Peb-2000
15-Feb-2000
I 5-Feb-2000
15-Feb-2000
15-Feb-2000
15-feb-2000
PAGE: 38
AMOUNT/
COST/
GAIN/LOSS
7,934.60
-7,769.71
164.89
7,934.60
0.00
0.00
46,853.50
-46,904.74
-5L24
558.80
-546.66
12.14
16,231.80
-16,231.80
0.00
16,231.80
0.00
0.00
7,822.09
-7,822.09
0.00
Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
MATURITIES
-7,822.09
31677EAA4
FC
CASH & CASH EQUIVALENTS
-900,000.00
59018JB11
MT
-9,500,000.00
3 l3396SP9
MT
-3, 700,000.00
313384SP5
MT
-503,000.00
313396SQ7
MT
-1,200,000.00
l2478JB70
MT
07-Mar-2000 8:57:19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
FIFTH THIRD BK AUTO TR 96A C
6.200% 0910112001DD03/15/9
LONG TERM OPER-PIMCO
MERRILL LYNCH CO DISC
02/0 1/2000
LONG TERM OPER-PIMCO
FEDERAL HOME LN MTG CORP DIS
MAT 02/02/2000
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MAT 02/02/2000
LIQUID OPER-PIMCO
FEDERAL HOME LN MTG CORP ms
02/03/2000
LONG TERM OPER-PIMCO
CBA (DELAWARE) DISC
02/07/2000
TRADE DATE/
SETTLDATE/
COMPLDATE
15-Feb-2000
15-Feb-2000
15-Feb-2000
0 l-Feb~2000
01-Feb-2000
0 l-Feb-2000
02-Feb-2000
02-Feb-2000
02-Peb-2000
02-Feb-2000
02-Feb-2000
02-Feb-2000
03-Feb-2000
03-Feb-2000
03-Feb-2000
07-Feb-2000
07-Feb-2000
07-Feb-2000
PAGE: 39
AMOUNT/
COST/
GAIN/LOSS
7,822.09
0.00
0.00
899,447.00
-899,447.00
0.00
9,459,139.44
-9,459, 139.44
0.00
3,697,194,17
-3,697,194.17
0.00
501,430.56
-501,430.56
0.00
I, 195,025.33
-1,195,025.33
0.00
Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 40
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY TD TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
-1,200,000.00 FEDERAL FARM CR BK CONS SYST 08-Feb-2000 1,196,529.33
313312SV3 MAT 02/08/2000 08-Feb-2000 -1, 196,529.33
MT 08-Feb-2000 0.00
LONG TERM OPER-PIMCO
-7,700,000.00 IBM DISC 08-Feb-2000 7,624,155.00
45920DB85 02/08/2000 08-Feb-2000 -7,624,155.00
MT 08-Feb-2000 0.00
LONG TERM OPER-PIMCO
-10, 700,000.00 GENERAL ELEC CAP DISC 09-Feb-2000 10,579, 743 .89
36959HB97 02/09/2000 09-Feb-2000 -10,579, 743.89
MT 09-Feb-2000 0.00
LIQUID OPER-PIMCO
-900,000.00 GENERAL ELEC CAP DISC 14-Feb-2000 890,636.50
36959HBE6 02/14/2000 14-Feb-2000 -890,636.50
MT 14-Feb-2000 0.00
LONG TERM OPER-PJMCO
-1,200,000.00 FEDERAL HOME LN MTG CORP DIS 15-Feb-2000 I, 198,498.67
313396TC7 MAT 02/15/2000 15-Feb-2000 -1,198,498.67
MT 15-Feb-2000 0.00
LONG TERM OPER-PIMCO
-14,000,000.00 XEROX CORP DISC 16-Fcb-2000 13,953,858.33
98412CBG3 02/16/2000 16-Feb-2000 -13,953,858.33
MT l 6-Feb-2000 0.00
LIQUID OPER-PIMCO
-3, 700,-000.00 FEDERAL HOME LN BK CONS DISC 16-Feb-2000 3,691,845.39
313384TD1 MAT 02/16/2000 16-Feb-2000 -3,691,845.39
MT 16-Feb-2000 0.00
07-Mar-2000 8:57:19 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 41
PORTFOLIO DETAIL
OCSGOOO I 0000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOL!DATED
SHARES/PAR TRADE DATE/ AMOUNT{
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LIQUID OPER-PlMCO
-3, 700,000.00 FEDERAL HOME LN BK CONS DISC 17-Feb-2000 3,699,437.81
313384TE9 MAT 02/17/2000 17-Feb-2000 ~3,699,437.81
MT l 7-Feb-2000 0.00
LONG TERM OPER-PlMCO
-600,000.00 ANZ DELAWARE lNC DISC 17-Feb-2000 597,728.00
00181RBH3 02/17/2000 l 7-Feb-2000 -597,728.00
MT 17-Feb-2000 0.00
LIQUID OPER-PIMCO
-900,000.00 ALUMINUM CO AMER DISC 18-Feb-2000 897,390.00
02225ABJO 02/18/2000 18-Feb-2000 -897,390.00
MT l 8-Feb-2000 0.00
LIQUID OPER-PIMCO
-1,700,000.00 FEDERAL HOME LN BK CONS DISC 18-Feb-2000 1,699,738.39
313384TF6 MAT 02/18/2000 INCOME AT MAT 18-Feb-2000 -1,699,738.39
MT 18-Feb-2000 0.00
LONG TERM OPER-PIMCO
-1,100,000.00 NATIONAL RURAL DISC 24-Feb-2000 1,086,844.00
63743CBQ5 02/24/2000 24-f eb-2000 -1,086,844.00
Mr 24-Feb-2000 0.00
LONG TERM OPER-PIMCO
-3,500,000.00 NATIONAL RURAL DISC 25-Feb-2000 3,486,048.61
63743CBR3 02/25/2000 25-Feb-2000 -3,486,048.6 l
MT 25-Feb-2000 0.00
LIQUID OPER-PIMCO
-2,000,000.00 FEDERAL HOME LN BK CONS DISC 25-Feb-2000 l,997;493.33
3133841N9 MAT 02/25/2000 25-Feb-2000 -1,997,493.33
MT 25-Feb-2000 0.00
07-Mar-2000 8:57: 19 Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOLJDATED
SHARES/PAR
SECURITY ID
TRANSCODE
-3,700,000.00
313384TRO
MT
-1,300,000.00
313396TS2
MT
-3,800,000.00
313384TS8
MT
FIXED INCOME SECURITIES
INTEREST
-9,000,000.00
718154BB2
MT
0.00
996087094
IT
900,000.00
590181Bl 1
IT
07-Mar-2000 8:57:19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MAT02/28/2000
LIQUID OPER-PIMCO
FEDERAL HOME LN MTG CORP DIS
MAT 02129/2000
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MAT 02/29/2000
LONG TERM OPER-PIMCO
PHILIP MORRIS COS NT
9.250% 02/15/2000
LONG TERM OPER-PIMCO
BSDT-LATE MONEY DEPOSIT ACCT
LONG TERM OPER-PIMCO
MERRILL LYNCH CO DISC
02/01/2000
TRADE DATE/
SETTLDATE/
COMPLDATE
28-Feb-2000
28-Feb-2000
28-Feb-2000
29-Feb-2000
29-Feb-2000
29-Feb-2000
29-Feb-2000
29-Feb-2000
29-Feb-2000
15-Feb-2000
15-Feb-2000
l 5-Feb-2000
0 l-Feb-2000
Ol-Feb-2000
Ol-Feb-2000
01-Feb-2000
Ol-Feb-2000
0 l-Feb-2000
II PAGE: 42
AMOUNT/
COST/
GAIN/LOSS
3,696,428.89
-3,696,428.89
0.00
I ,294,667 .11
-1,294,667.1 1
0.00
3,799,403.61
-3,799,403.61
0.00
9,000,000.00
-9,903,780.00
-903,780.00
0.40
0.00
0.00
553.00
0.00
0.00
ExecuJive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 43
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-FEB-2000-29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/
TRANS CODE BROKER COMPLDATE GAIN/LOSS
LIQUID OPER-PIMCO
3,700,000.00 FEDERAL HOME LN BK CONS DISC 02-Feb-2000 2,805.83
313384SP5 MAT 02/02/2000 02-Feb-2000 0.00
IT 02-Feb-2000 0.00
LONG TERM OPER-PIMCO
9,500,000.00 PEDERAL HOME LN MTG CORP DIS 02-Feb-2000 40,860.56
313396SP9 MAT 02/02/2000 02-Feb-2000 0.00
IT 02-Feb-2000 0.00
LONG TERM OPER-PIMCO
1,000,000.00 HOUSEHOLD FfN MTN SR #00570 02-Feb-2000 16,240.56
4418IKZT4 FLTG RT 08/0 I /200 I DD 09/04/ 02-Feb-2000 0.00
IT 02-Feb-2000 0.00
LONG TERM OPER-PIMCO
0.00 DREYFUS TREASURY CASH MGMT 03-Feb-2000 7,323.77
996085247 0 l-Feb-2000 0.00
IT 03-Feb-2000 0.00
LIQUID OPER-PIMCO
0.00 DREYFUS TREASURY CASH MGMT 03-Feb-2000 1,239.38
996085247 0 l-Peb-2000 o.oo
IT 03-Feb-2000 o.oo
LIQUID OPER-PIMCO
503,000.00 FEDERAL HOME LN MTG CORP DIS 03-Feb-2000 1,569.44
313396SQ7 02/03/2000 03-Feb-2000 0.00
IT 03-Feb-2000 0.00
LONG TERM OPER-PIMCO
1,200,000.00 CBA (DELAWARE) DISC 07-Feb-2000 4,974.67
l2478JB70 02/07/2000 07-Feb-2000 0.00
IT 07-Feb-2000 0.00
07-Mar-2000 8:57:19 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 44
PORTFOLIO DETAIL
OCSGQOO 10000 Ol-FEB-2000-29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURJTYID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
1,200,000.00 FEDERAL FARM CR BK CONS SYST 08-Feb-2000 3,470.67
313312SV3 MAT 02/08/2000 08-Feb-2000 0.00
IT 08-Feb-2000 0.00
LONG TERM OPER·PIMCO
7,700,000.00 IBM DISC 08-Feb-2000 75,845.00
45920DB85 02/08/2000 08-Feb-2000 0.00
IT 08-Feb-2000 0.00
LONG TERM OPER·PIMCO
10,700,000.00 GENERAL ELEC CAP DISC 09-Feb-2000 120,256.11
36959HB97 02/09/2000 09-Feb-2000 0.00
lT 09-Feb-2000 0.00
LONG TERM OPER-PIMCO
2,000.000.00 BANKERS TR NY CORP GLOBAL NT 1 J-Feb-2000 31,161.18
066365DW4 FLTO RT 05/1112003 DD 05/11/ 11-Feb-2000 0.00
IT 1 l-Feb-2000 0.00
LONG TERM OPER-PIMCO
2,000,000.00 FORD MTR CR CO GLOBAL NTS 14-Feb-2000 31,319.17
345397RV7 FLTG RT02/13/2003 DD 02/13/ 13-Feb-2000 0.00
IT 14-Feb-2000 0.00
LIQUID OPER-PIMCO
900,000.00 GENERAL ELEC CAP DISC I 4-Feb-2000 9,363.50
36959HBE6 02/14/2000 14-Feb-2000 0.00
IT 14-Feb-2000 0.00
LIQUID OPER-PIMCO
400,000.00 LEHMAN BROS HLDGS MTN TR 002 lS•Feb-2000 12,800.00
52517PLMI 6.400% 08/30/2000 DD 0912619 l 5-Feb-2000 0.00
IT l 5-Feb-2000 0.00
07-Mar-2000 8: 57; I 9 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAG~: >15
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATEf COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
2,500,000.00 FHLMC MUL TICLASS CTF 2146 QT I 5-Feb-2000 12,500.00
3133TKKU3 6.000% 11/15/2011 Ol-Feb-2000 0.00
IT 15-Feb-2000 0.00
LONGTERM OPER-PIMCO
9,600,000.00 US TREASURY BONDS 15-Feb-2000 600,000.00
912810DL9 12.500% 08/1512014 DD 08/15/ 15-Feb-2000 0.00
lT 15-Feb-2000 0.00
LONG TERM OPER-PIMCO
3,000,000.00 SEARS ROEBUCK ACCEP CORP MTN 15-Feb-2000 99,450.00
81240QJAI 6.630% 07/09/2002 DD 07/09/9 15-Feb-2000 0.00
IT 15-Feb-2000 0.00
LONG TERM OPER-PIMCO
9,000,000.00 PHILIP MORRIS COS NT I 5-Feb-2000 416,250.00
718154BB2 9.250% 02/15/2000 l 5-Feb-2000 0.00
1T l S-Feb-2000 0.00
LONG TERM OPER-PIMCO
1,200,000.00 FEDERAL HOME LN MTG CORP DIS 15-Feb-2000 1,501.33
313396TC7 MAT 02/1512000 l 5-Feb-2000 0.00
IT 15-Feb-2000 0.00
LONG TERM OPER-PIMCO
39,873.05 FHLMC GROUP #G5-0476 15-Feb-2000 52,140.72
3128DDQ55 7.000% 02101/2003 DD 02/01/ Ol-Feb-2000 0.00
IT 15-Feb-2000 0.00
LONG TERM OPER-PIMCO
38,194.95 FHLMC MULTICLMTG P/C 1574 E l 5-Feb-2000 2,619.49
3133T02D5 5.900%06/1512017 01 -Feb-2000 0.00
IT l 5-Feb-2000 0.00
07-Mar-2000 8:57:19 Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
52,522.00
3133TCE95
It
22.50
3133TCE95
IT
16,231.80
3935052Y7
IT
11,932.80
3133Tl7A4
IT
7,822.09
31677EAA4
IT
14,000,000.00
98412CBG3
IT
3,700,000.00
313384TDl
IT
07-Mar-2000 8:57: 19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000-29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
FHLMC MULTICLASS CTF E3 A
6.324% 08/15/2032
LONG TERM OPER-PIMCO
FHLMC MULTlCLASS CTF E3 A
6.324% 08/15/2032
LONG TERM OPER-PIMCO
GREEN TREE CORP 99·D CL A-l
6.290% 10/15/2013 DD 08/2~/9
LONG TERM OPER-PlMCO
FHLMC MUL TICLASS CTF SER 162
6.000% 11115/2023 DD 11/01/9
LONGTERM OPER-PIMCO
FIFTII THIRD BK AUTO TR 96A C
6.200% 09/01/2001DD03/15/9
LONG TERM OPER-PIMCO
XEROX CORP DJSC
02/16/2000
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MAT 02/16/2000
TRADE DATE/
SETTLDATE/
COMPLDATE
l 5-Feb-2000
01-Jan-2000
15-Feb-2000
15-Feb-2000
0 l-Jan-2000
15-Feb-2000
15-Feb-2000
15-Feb-2000
l 5-Feb-2000
15-Feb-2000
01-Feb-2000
15-Feb-2000
15-Feb-2000
15-Feb-2000
15-Feb-2000
l 6-Feb-2000
16-Feb-2000
16-Feb-2000
16-Feb-2000
16-Feb-2000
t 6-Feb-2000
II PAGE: 46
AMOUNT/
COST/
GAIN/LOSS
15,952.33
0.00
0.00
22.50
0.00
0.00
2,208.89
0.00
0.00
11,932.80
0.00
0.00
312.31
0.00
0.00
46,141.67
0.00
0.00
8,154.61
0.00
0.00
Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
3,500,000.00
17120QE80
IT
600,000.00
OOJ81RBH3
lT
3,700,000.00
3l3384TE9
IT
3,950,000.00
370425QV5
IT
1,000,000.00
3134A3RT5
IT
900,000.00
02225ABJO
IT
1, 700,000.00
313384TF6
IT
07-Mar-2000 8:57:19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000-29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
CHRYSLER FINL LLC MTN #TR006
FLTG RT 08/08/2002 DD 04/08/
LONG TERM OPER-PIMCO
ANZ DELA WARE INC DISC
02117/2000
LIQUID OPER-PlMCO
FEDERAL HOME LN BK CONS DISC
MAT 02/17/2000
LONG TERM OPER-PIMCO
GENERAL MTRS ACCEP CORP NTS
FLTG RT 08/18/2003 DD 08/17/
LIQUID OPER-PIMCO
FEDERAL HOME LN MTG CORP DEB
FLTG RT 05/18/2000 DD 051181
LIQUID OPER-PlMCO
ALUMINUM CO AMER DISC
02/18/2000
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MAT02/18/2000 INCOME AT MAT
TRADE DATE/
SETTLDATE/
COMPLDATE
l 6-Feb-2000
15-Feb-2000
16-Feb-2000
17-Feb-2000
l 7-Feb-2000
l 7-Feb-2000
17-Feb-2000
17-Feb-2000
l 7-Feb-2000
l 8-Feb-2000
18-Feb-2000
18-Feb-2000
18-Feb-2000
I 8-Feb-2000
18-Feb-2000
l 8-Feb-2000
t 8-Feb-2000
l 8-Feb-2000
18-Feb-2000
18-Feb-2000
18-Feb-2000
,
PAGE: 47
AMOUNT/
COST/
GAIN/LOSS
16,176.79
0.00
0.00
2,272.00
0.00
0.00
562.19
0.00
0.00
62,286.76
0.00
0.00
4,820.07
0.00
0.00
2,610.00
0.00
0.00
261.61
0.00
0.00
&eculive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 48
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOL/DATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATEf COSTf
TRANSCODE BROKER COMPLDATE GAJN/LOSS
LONG TERM OPER-PIMCO
2,000,000.00 GNMA GTD REMIC TR 2000·2 PA 22-Feb-2000 ll,666.67
3837H3C70 7.000% 12120/2022 Ol-Feb-2000 0.00
IT 22-Feb-2000 0.00
LONG TERM OPER-PIMCO
32,928.60 GNMA II POOL #0080023 22-Feb-2000 9,200.63
36225CAZ9 6.125% 1212012026 DD 12/01/ OJ-Feb-2000 0.00
IT 22-Feb-2000 0.00
LONG TERM OPER-PIMCO
34,299.89 GNMA lI POOL #080088M 22-Feb-2000 10,850.41
36225CC20 VAR RT 06/20/2027 DD 06/01/9 Ol-Feb-2000 0.00
IT 22-Feb-2000 0.00
LONG TERM OPER-PIMCO
I, 100,000.00 NATIONAL RURAL DISC 24-Feb-2000 13,156.00
63743CBQ5 02/24/2000 24-Feb-2000 0.00
IT 24-Feb-2000 0.00
LONG TERM OPER-PIMCO
2,000,000.00 FHLMC MULTICLASS CTF Tl I A6 25-Feb-2000 10,833.33
3133TDPV2 6.500% 09/25/2018 25-Jan-2000 0.00
IT 25-Feb-2000 0.00
LONG TERM OPER·PIMCO
3,500,000.00 NATIONAL RURAL DISC 25-Feb-2000 13,951.39
63743CBR3 02125/2000 25-Feb-2000 0.00
IT 25-Feb-2000 0.00
LIQUID OPER-PIMCO
2,000,000.00 FEDERAL HOME LN BK CONS DISC 25-Feb-2000 2,506.67
313384TN9 MAT 02/25/2000 25-Feb-2000 0.00
IT 25-Feb-2000 0.00
07-Mar-2000 8:57:19 Executive Workbench
@) ORANGE COUNTY SANITATION DISTRICT ,,.
PAGE: 49
PORTFOLIO DETAIL
OCSGOOO 10000 01-FEB-2000 -29-FEB-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMJ>LDATE GAJN/LOSS
LONG TERM OPER-PTMCO
7,934.60 FNMA POOL #0252703 25-Feb-2000 5,327.74
31371HU48 6.500% 09/01/2006 DD 08/01/ Ol-Feb-2000 0.00
IT 25-Feb-2000 0.00
LONG TERM OPER-PIMCO
2,000,000.00 FORD MTR CR CO TERM ENHANCED 28-Feb-2000 31,376.04
345397SC8 FLTG RT08/27/2006 DD 08127/ 27-Feb-2000 0.00
IT 28-Feb-2000 0.00
LIQUID OPER-PIMCO
3,700,000.00 FEDERAL HOME LN BK CONS DISC 28-Feb-2000 3,571.11
313384TRO MA T02/28/2000 28-Feb-2000 0.00
IT 28-Feb-2000 0.00
LONG TERM OPER-PIMCO
5,000,000.00 US TREASURY NOTES 29-Feb-2000 156,250.00
9128272L5 06.250% 02/28/2002 DD 02/28/ 28-Feb-2000 0.00
IT 29-Feb-2000 0.00
LIQUID OPER-PIMCO
1,300,000.00 FEDERAL HOME LN MTG CORP DIS 29-Feb-2000 5,332.89
313396TS2 MAT 02/29/2000 29-Feb-2000 0.00
IT 29-Feb-2000 0.00
LONG TERM OPER-PIMCO
0.00 US TREASURY rNFLATJON INDEX 29-Feb-2000 20.00
9128275W8 4.250%001/15/2010 DD 01115/ 0.00
CD 29-Feb-2000 0.00
LONG TERM OPER-PIMCO
0,00 US TREASURY INFLATION INDEX 29-Feb-2000 200.00
9128272M3 3.375% 01/15/2007 DD 01/15/ 0.00
CD 29-Feb-2000 0.00
07-Mar-2000 8:57: 19 E.xecutive Workbench
OCSGOOOJ 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
0.00
9128273A8
CD
07-Mar-2000 8:57:19
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-FEB-2000 -29-FEB-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
US TREASURY INFLATION INDEX
3.625% 07/15/2002 DD 07/15/
TRADE DATE/
SETTLDATE/
COMPLDATE
29-Feb-2000
29-Feb-2000
PAGE: 50
AMOUNT/
COST/
GAIN/LOSS
140.00
0.00
0.00
Executive Workbench ---