HomeMy WebLinkAbout2000-06-14MINUTES OF FINANCE. ADMINISTRATION AND
HUMAN RESOURCES COMMITTEE MEETING
Orange County Sanitation District
Wednesday, June 14, 2000, 5:00 p.m.
A meeting of the Finance, Administration and Human Resources Committee of the Orange
County Sanitation District was held on June 14, 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
Mark Leyes, Vice Chair
James W. Silva
Jan Debay, Board Chair
Peer Swan, Board Vice Chair
Shirley McCracken
OTHERS PRESENT:
Tom Woodruff, General Counsel
Don Hughes
Toby Weissert
Jeff Bower
Juan Pittman
Ryal Wheeler
(2) APPOINTMENT OF CHAIR PRO TEM
No appointment was necessary
(3) PUBLIC COMMENTS
There were no public comments.
Directors Absent:
Shawn Boyd
John M. Gullixson
Mark A. Murphy
STAFF PRESENT:
Blake Anderson, General Manager
Bob Ooten, Director of Operations &
Maintenance
Gary Streed, Director of Finance
Patrick Miles, Director of Information
Technology
Steve Kozak, Financial Manager
Greg Mathews, Asst. to the General Manager
Jean Tappan, Asst. Committee Secretary
Brad Cagle, Accounting Manager
(4) RECEIVE, FILE AND APPROVE MINUTES OF PREVIOUS MEETING
It was moved, seconded and duly carried to approve the minutes of the May 10, 2000 Finance,
Administration and Human Resources Committee meeting. Directors McCracken and Swan
abstained. Director Swan clarified his comments to staff, made in advance of the May 1 O
meeting, as reported in the minutes. FILEC
IN THE OFFIC[ or T;.+( 8ECRETARY
ORANGE COUN!v ~~..,l!TATION DISTRICi
J~N 28 2000
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Minutes of the Finance, Administration and Human Resources Committee Meeting
Page2
June 14, 2000
(5) REPORT OF THE COMMITTEE CHAIR
The Committee Chair indicated that there would be a short closed session.
The next FAHR Committee meeting will be July 12, 2000.
(6) REPORT OF THE GENERAL MANAGER
General Manager Blake Anderson did not make a report.
(7) REPORT OF DIRECTOR OF FINANCE
Director of Finance Gary Streed reported briefly on some preliminary staff work that was done to
answer the question, "What is different from 1985-86?" The Committee asked for additional
information regarding changes at a future meeting.
(8) REPORT OF DIRECTOR OF HUMAN RESOURCES
The Director of Human Resources was not present.
(9) REPORT OF GENERAL COUNSEL
General Counsel Tom Woodruff had no report.
(10) CONSENT CALENDAR ITEMS (Items a-e)
a. FAHR00-48: Receive and file Treasurer's Report for the month of May 2000. The
Treasurer's Report will be distributed at the FAHR Committee meeting in
accordance with the Board-approved Investment Policy, and in
conformance to the Government Code requirement to have monthly
reports reviewed within 30 days of month end.
b. FAHR00-49: Receive and file Certificate of Participation (COP) Monthly Report.
c. FAHR00-50: Receive and file Employment Status Report as of June 1, 2000.
d. FAHR00-51 : Recommend to Board of Directors to renew the District's All-Risk Property
and Earthquake Insurance Program tor the period July 1, 2000 to July 1,
2001, in an amount not to exceed $955,000.
e. FAHR00-52: Recommend to Board of Directors to renew the District's Boiler &
Machinery Insurance Program tor the period July 1, 2000 to July 1, 2001 ,
in an amount not to exceed $70,792.
END OF CONSENT CALENDAR
Motion: It was moved, seconded and duly carried to approve the recommended actions for
items specified as 11 (a) through (e) under Consent Calendar.
Minutes of the Finance, Administration and Human Resources Committee Meeting
Page3
June 14, 2000
(11) ACTION ITEMS
a. FAHR00-53: Recommend to Board of Directors to approve proposed Operating,
Capital, Debt/COP Service and Self-Insurance Budgets for 2000-01, as
follows:
Joint Works Operating/Working Capital
Worker's Compensation Self-Insurance
General Liability and Property Self-Insurance
Collection System Operating
Capital Improvement Program
Debt/COP Service
$46,000 ,000
412,500
1,919,000
9,545,000
83,526,000
40,737,000
Motion: It was moved, seconded and duly carried to recommend approval to the Board
of Directors.
b. FAHR00-54: Recommend to Board of Directors to authorize the Director of Finance to
issue a Request for Proposals for Investment Banking Services, and
report back with recommendations for selection of investment banker(s)
for issuance of Reimbursement Certificates of Participation.
After discussion, staff was directed to present additional information at the July 12 FAHR
Committee meeting comparing the costs and benefits of, and alternatives to, including a
portion of the proposed Reimbursement COPs with the Series 2000 Refunding COP
issue.
c. FAHR00-55: Recommend to Board of Directors to:
1 . Approve selection of Dexia Credit local de France (DCLF) as the Standby
Liquidity Facility Bank for the Series 2000 Refunding COPs; and,
2. Approve selection of Texas Chase Bank or State Street Bank as Trustee Bank for
the Series 2000 Refunding COPs based on lowest annual cost to the District, and
direct staff to report to the Board on the successful bidder at the June Board
meeting.
Motion: It was moved, seconded and duly carried to recomme,nd approval to the Board
of Directors.
(12) INFORMATIONAL PRESENTATIONS
There were none.
(13) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF
ANY
There were none.
Minutes of the Finance, Administration and Human Resources Committee Meeting
Page4
June 14, 2000
(14) MA1TERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR
ACTION AND STAFF REPORT
There were none
(15) CONSIDERATION OF UPCOMING MEETINGS
The next FAHR Committee meeting is scheduled for July 12, 2000 at 5 p.m.
(16) CLOSED SESSION
The Chair reported that the Committee would meet in Closed Session, as authorized by
Government Code Section 54957 .6, to discuss and consider labor negotiations with Local 501
and SPMT Units.
The Committee convened in closed session at 6:07 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 No. 16(a)(1 ).
At 6:14 p.m., the Committee reconvened in regular session.
(17) ADJOURNMENT
The Chair declared the meeting adjourned at approximately 6:15 p.m.
Submitted by:
appan
Committee Assistant Secretary
H:\wp.dta\agendalFAHRIFAHR2000\2000 Minutesl061400 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 kvJ..£ J l/ , 2oof2, was duly posted
' '
for public inspection in the main lobby of the District's offices on !bv/L( £·
200.D..
IN WITNESS WHEREOF, I have hereunto set my hand this rP' _;a, day of
/fz,ti'i.,~ I 200..[!.
t L'
Penny M. Kyl~Secreta
Board of Directors
Orange County Sanitation District
\\RAOON\DATA 1 \WP.DTA\ADMIN\BS\FORMS\AGENDA CERTIFICATION-FAHR COMMITIEE.DOC
June 8, 2000.
Full Agenda Package
Committee
& Mailing List
Blake P. Anderson•
Dan Dillon
Marc Dubois
Steve Kozak
Penny Kyle
David Ludwin
Greg Mathews
Patrick Miles•
Bob Ooten
Lisa Tomko*
Gary Streed
Communications•
Robert Ghlrem
Mike White*
Brad Cagle
Bob Geggie
Jeff Esber
Patricia Jonk
Lenora Crane
Extras
Notices and Agenda Only
DISTRIBUTION
FAHR COMMITTEE MEETING PACKAGE
40
13
1
1
1
1
2
1
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
Gail Cain 1
Rose Marsella 1
Frankie Woodside 1
Patricia Magnante 1
Janet Gray 1
Security 1
Ron Zenk, Dist. 14 Treasurer's Report Only
c
\\RAOON\OATA 1 \WP .OTA \ADMIN\BS\FAHR\OISTRIBUTIONLISTFAHR.OOC
phDne:
C714l 962-2411
malling address:
P.O. Box 8127
Fountain Valley. CA
92728-6127
street address:
10844 Ellis Avenue
Fountain Valley, CA
92708-7018
Member Agencies
Cit ies
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
Sea/ Beach
Stanton
Tustin
Villa Park
Yorba Linda
CDunty Df Orange
Sanitary District s
Costa Mesa
Midway City
Wat er Dis tricts
Irvine Ranch
ORANGE COUNTY SANITATION DISTRICT
June 8, 2000
NOTICE OF MEETING
FINANCE, ADMINISTRATION AND HUMAN RESOURCES
COMMITTEE
ORANGE COUNTY SANITATION DISTRICT
WEDNESDAY, JUNE 14, 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 Pub/le Health and the Environment through Excellence in Wastewater Systems"
FINANCE, ADMINISTRATION AND HUMAN RESOURCES
COMMITTEE MEETING DATES
,FAHR Committee Meeting Oates
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
April 11 , 2001
May 9, 2001
June 13, 2001
Board Meeting Dates
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
April 25, 2001
May 23, 2001
June 27, 2001
ROLL CALL
FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE
Meeting Date: June 14, 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
BLAKE ANDERSON, General Manager .......................................... .
DAVID LUDWIN, Director of Engineering ..•••..•........•••.••••..••••••..•.•..
BOB OOTEN, Director of Operations & Maintenance ................... ..
LISA TOMKO, Acting Director of Human Resources .................... .
GARY STREED, Director of Finance .............................................. .
PATRICK MILES, Director of Information Technology ..••.••...•.••.••.•
ROBERT GHIRELLI, Director of Technical Services ............. -.• ·~···
STEVE KOZAK, Financial Manager ............................................... .
MIKE WHITE, Controller .•..•.•..•••..•..•.•.•••.•••••••••••••...•••••••••.•..••.••••.••••
GREG MATHEWS, Assistant to the General Manager ..•...•...•..•...•..
PENNY KYLE, Committee Secretary .............................................. .
c: Lenora Crane
June 8, 2000
July Update Human Resources Policies & Procedures Action
July Annual Investment Policy Approval Action
July Consider Full-Scale Procurement Card Action
July Consider Annexation Fee Policy Action
August Dark
September Select Series 2000 Reimbursement COPs Underwriter Action
September Quarterly Investment Management Report Information
September Quarterly General Manager Approved Purchases Action
September 1999-2000 Year-End Operational Report Information
October Update Human Resources Policies & Procedures Action
October Approve Series 2000 Reimbursement COPs Action
November Consider Equity Adjustments Action
November 1999-2000 Comprehensive Annual Financial Report Action
November 2000-01 151 Quarter Financial & Operational Report Action
AGENDA
REGULAR MEETING OF THE
FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE
ORANGE COUNTY SANITATION DISTRICT
WEDNESDAY, JUNE 14, 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 Jess 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 Jess 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).
June 14, 2000
(4) APPROVE MINUTES OF PREVIOUS MEETING
Approve minutes of the May 10, 2000, Finance, Administration and Human Resources
Committee meeting.
(5) REPORT OF COMMITTEE CHAIR
(6) REPORT OF GENERAL MANAGER
(7) REPORT OF DIRECTOR OF FINANCE
(8) REPORT OF DIRECTOR OF HUMAN RESOURCES
(9) REPORT OF GENERAL COUNSEL
(10) CONSENT CALENDAR ITEMS
Consideration of motion to approve all agenda items appearing on the Consent Calendar not
specifically removed from same, as follows:
I
.All matters placed on the consent calendar are considered as not-requiring discussTciii'Or further explanation ana--1
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
1calendar 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 ,
!order of business. I
mbers of the public who wish to remove an item from the consent calendar shall, upon recognition by the chair, :
a.
e their name, address and designate by number the item to be removed from the consent calendar. I
I
Chair will detennine if any items ar~. to be deleted from ~he _consent calendar. J
FAHR00-48: Receive and file Treasurer's Report for the month of May 2000. The
Treasurer's Report will be distributed at the FAHR Committee meeting in
accordance with the Board-approved Investment Policy, and in
conformance to the Government Code requirement to have monthly
reports reviewed within 30 days of month end.
2
b. FAHR00-49:
c. FAHR00-50:
d. FAHR00-51:
e. FAHR00-52:
June 14, 2000
Receive and file Certificate of Participation (COP) Monthly Report.
Receive and file Employment Status Report as of June 1, 2000.
Recommend to Board of Directors to renew the District's All-Risk
Property and Earthquake Insurance Program for the period July 1, 2000
to July 1, 2001, in an amount not to exceed $955,000.
Recommend to Board of Directors to renew the District's Boiler &
Machinery Insurance Program for the period July 1, 2000 to July 1,
2001, in an amount not to exceed $70,792.
END OF CONSENT CALENDAR
Consideration of items deleted from Consent Calendar, if any.
(11) ACTION ITEMS
a. FAHR00-53:
b. FAHR00-54:
c. FAHR00-55:
Recommend to Board of Directors to approve proposed Operating,
Capital, Debt/COP Service and Self-Insurance Budgets for 2000-01, as
follows:
Joint Works Operating/Working Capital
Worker's Compensation Self Insurance
General Liability and Property Self-Insurance
Collection System Operating
Capital Improvement Program
Debt/COP Service
(Gary Streed & Mike White -30 minutes)
$46,000,000
412,500
1,919,000
9,545,000
83,526,000
40,737,000
Recommend to Board of Directors to authorize the Director of Finance to
issue a Request for Proposals for Investment Banking Services, and
report back with recommendations for selection of investment banker(s)
for issuance of Reimbursement Certificates of Participation.
(Steve Kozak -5 minutes)
Recommend to Board of Directors to:
1. Approve selection of Dexia Credit Local de France (DCLF) as the
Standby Liquidity Facility Bank for the Series 2000 Refunding
COPs; and,
2. Approve selection of Texas Chase Bank or State Street Bank as
Trustee Bank for the Series 2000 Refunding COPs based on
lowest annual cost to the District, and direct staff to report to the
Board on the successful bidder at the June Board meeting.
(Steve Kozak -5 minutes)
3
June 14, 2000
(12) INFORMATIONAL PRESENTATIONS
(13) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY
(14) MA TIERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR
ACTION AND STAFF REPORT
(15) FUTURE MEETING DATES
The next Finance, Administration and Human Resources Committee Meeting is scheduled for
July 12, 2000, at 5 p.m.
(16) CLOSED SESSION
"ouring the course of conducting-thebu.sfness set forth on ttiTs-·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
1
1
· the California Public Records Act, may be reviewed by the Committee during a permitted closed session and are
not available for public inspection. Af such time as final actions are taken by the Committee on any of these I subjects, the minutes will reflect all re9uired disclosure_s_o_f ·_m_fo_rm_a_t_io_n. ______________ __,
A. Convene in closed session.
1. Confer with District's Labor Negotiators (Human Resources Representative and
General Manager) re salaries, benefits, terms and conditions of employment for
employees represented by IUOE -Local 501 and SPMT Unit (Government Code
Section 54957.6).
8. Reconvene in regular session.
C. Consideration of action, if any, on matters considered in closed session.
(17) ADJOURNMENT
Notice To Committee Members:
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) 833-9200
(714) 593-7130 !
·----·-·---·-·--·-----J
4
•
MINUTES OF FINANCE. ADMINISTRATION AND
HUMAN RESOURCES COMMITTEE MEETING
Orange County Sanitation District
Wednesday, May 10, 2000, 5:00 p.m.
A meeting of the Finance, Administration and Human Resources Committee of the Orange
County Sanitation District was held on May 10, 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
Mark Leyes, Vice Chair
Shawn Boyd
John M. Gullixson
James W. Silva
Mark A. Murphy
Jan Debay, Board Chair
OTHERS PRESENT:
Tom Woodruff, General Counsel
Don Hughes
Toby Weissert
Jeff Bower
David Webb
John Weingarden
Bob Geggie
(2) APPOINTMENT OF CHAIR PRO TEM
No appointment was necessary
(3) PUBLIC COMMENTS
There were no public comments.
Directors Absent:
Peer Swan, Board Vice Chair
Shirley McCracken
STAFF PRESENT:
Blake Anderson, General Manager
Lisa Tomko, Director of Human Resources
Bob Ooten, Director of Operations &
Maintenance
Gary Streed, Director of Finance
Michelle Tuchman, Director of Communications
Patrick Miles, Director of Information
Technology
Dawn McKinley, Sr. Human Resources Analyst
Steve Kozak, Financial Manager
Mike White, Controller
Jean Tappan, Asst. Committee Secretary
(4) RECEIVE, FILE AND APPROVE MINUTES OF PREVIOUS MEETING
It was moved, seconded and duly carried to approve the minutes of the April 12, 2000 Finance,
Administration and Human Resources Committee meeting.
Minutes of the Finance, Administration and Human Resources Committee Meeting
Page2
May 10, 2000
(5) REPORT OF THE COMMITTEE CHAIR
The Committee Chair indicated a need to add one item as Agenda Item No. 17(a){1) needing
immediate action that arose subsequent to the publication of the agenda to meet with the
District's negotiators to discuss labor negotiations with Local 501 and the SPMT Units. He
reported that an additional item could be added pursuant to California Government Code Section
54954.2(b)(2) upon a two-thirds vote of the Committee. It was moved, seconded and carried to
find that the matter arose subsequent to the posting of the agenda pursuant to authority of
California Government Code Section 54954.2(b)(2) and based on that to add the item to the
agenda as Item No. 17(a)(1).
The next FAHR Committee meeting will be June 14, 2000.
(6) REPORT OF THE GENERAL MANAGER
General Manager Blake Anderson reported on a request from the City of Huntington Beach,
through the Cooperative Projects Program, to use federal funds for its 50% portion. The Steering
Committee discussed this item at its April meeting. At that time the recommendation was to
require an agency seeking District funds to provide local funds equal to the District's match, and
if grant monies are used, any auditing costs would be borne by the agency. The Huntington
Beach representative discussed the reasons for the request with the Cooperative Projects
Committee members, and after considerable discussion, the Committee agreed to recommend
changes in the agreements to allow the use of federal funds.
There was a motion made, seconded and carried to support the recommendation of the
Cooperative Projects Committee. The recommendations will be forwarded to the Steering
Committee in May and the OTMS Committee and Board at their June meetings.
Mr. Anderson reported on a spill that occurred in Costa Mesa at the College Avenue Pump Station, an
aging facility that has been scheduled for rehabilitation in the next few years. The spill ended up in the
Santa Ana River. The Orange County Health Care Agency then closed the beach. As a result of this
spill, the status of the station will be evaluated immediately to see if the rehabilitation should be
moved forward.
Mr. Anderson also reported that escrow will close on Monday, May 15 for the purchase of
property in Kings County for biosolids application. He met with two of the Kings County
supervisors to introduce himself. Based on that discussion, staff will be making a concentrated
effort to ensure that all regulations and standards for operating a composting facility are met.
Additional site improvements will be made to improve the aesthetics of the property.
Mr. Anderson also reported on the Little Hoover Commission report on Special Districts, which
was released last week. The report contains five findings that special districts are not
accountable to their communities, reserves are excessive, not well planned or justified, and
property tax allocations need to be adjusted. Staff is preparing a white paper that will discuss the
findings and the impacts on the District.
Minutes of the Finance, Administration and Human Resources Committee Meeting
Page 3
May 10, 2000
(7) REPORT OF DIRECTOR OF FINANCE
Director of Finance Gary Streed reported that the District has again received an award for its
Comprehensive Annual Financial Report and that Julie Matsamoto also received an award for
leading this effort.
As reported at last month's FAHR Committee meeting, the District's short-term portfolio holds
two FINOVA Capital notes ($475,000) which were downgraded to BBB+ on the last day of the
month. Both securities met the District's credit quality requirements when PIMCO purchased
them in October 1999, and January 2000. However, the current downgraded securities are
technically non-compliant with respect to credit quality. Staff has monitored and evaluated
PIMCO's position in these securities with both PIMCO and Callan Associates, the District's
investment advisor. Both firms recommend that the FINOVA securities continue to be held and
monitored, as the notes are due to mature in October (less than six months), and the District
would receive full payment of principal at maturity. The Committee members agreed with staffs
recommendation.
(8) REPORT OF DIRECTOR OF HUMAN RESOURCES
Lisa Tomko, Acting Director of Human Resources, reported that the first negotiating meeting with
the SPMT group is scheduled for Thursday, May 11, 2000. Additional details will be discussed in
closed session.
(10) REPORT OF DIRECTOR OF COMMUNICATIONS
Michelle Tuchman, Director of Communications, reported that both Orange County and the City
of Huntington Beach have scheduled meetings to discuss the development of a media action
plan that will address beach closures for the summer.
Blake Anderson announced that Ms. Tuchman has submitted, and he has accepted with regret,
her resignation as Director of Communications. She will be leaving the District at the end of the
month to join Nelson Communications.
(10) REPORT OF GENERAL COUNSEL
General Counsel Tom Woodruff had no report.
(11) CONSENT CALENDAR ITEMS (Items a-g)
a. FAHR00-32: Receive and file Treasurer's Report for the month of April 2000.
b. FAHR00-33: Receive and file Certificate of Participation (COP) Monthly Report.
c. FAHR00-34: Receive and file Employment Status Report as of May 1, 2000.
Minutes of the Finance, Administration and Human Resources Committee Meeting
Page 4
May 10, 2000
d. FAHR00-35: Receive and file report of General Manager approved purchases in
amounts exceeding $50,000 in accordance with Board purchasing
policies.
e. FAHR00-36: Recommend that the Board of Directors receive and file Quarterly
Investment Management Program Report for the period January 1,
2000 through March 31, 2000,
f. FAHR00-37: Recommend that the Board of Directors receive and file the Third
Quarter Financial and Operational Report for the period ending
March 31, 2000.
g. FAHR00-38: Recommend that the Board of Directors adopt Resolution
No. OCSD 00-_, Amending Resolution No. OCSD 98-33,
Amending Human Resources and Policies Procedures Manual.
END OF CONSENT CALENDAR
Motion: Moved, seconded and duly carried to approve the recommended actions
for items specified as 11 (a) through (g) under Consent Calendar.
(12) ACTION ITEMS (Items a-g)
a. FAHR00-39: Adopt Resolution No. OCSD 00-_, Amending Resolution
No. OCSD 98-33, Amending Human Resources and Policies
Procedures Manual, providing for: (1) Create Accounting
Supervisor classification at pay range E11 ($60,828-$86,064); (2)
Create Human Resources Supervisor classificaUon at pay range
E11 ($60,828-$86-064); (3) Create Lead Pump Power Operator at
pay range 2015 ($47,285-$58,883); and , (4) Change the title of
Senior Plant Operator to Lead Plant Operator.
Motion: It was moved, seconded and duly carried to recommend approval to the Board
of Directors. Director Gullixson opposed.
b. FAHR00-40: Direct staff to work with member agencies to evaluate the potential
to collect Capital Facilities Capacity Charges (CFCC) for high·
demand users in two phases: when building permits are issued,
and when tenant improvement permits are issued.
Motion: It was moved, seconded and duly carried to approve.
c. FAHR00-41: Adopt a policy of maintaining the adopted Capital Facilities
Capacity Charge rate and structure until the _Strategic Plan Capital
Improvement Program is modified.
Motion: It was moved, seconded and duly carried to recommend approval to the Board
of Directors.
•
Minutes of the Finance, Administration and Human Resources Committee Meeting
Page 5
May 10, 2000
d. FAHR00-42: (1) Implement Sewer Service Charge rates for 2000-01 equal to
those previously adopted for Revenue Area 3. These rates will be
based upon the single-family residential rate of $78 per year and
the percentages adopted in Ordinance No. OCSD-05. Previously
adopted higher rates in other Revenue Areas may be implemented
as needed in the future; and,
(2) Implement previously adopted Sewer Service Charge rates in
Revenue Area 7. The base single-family residential rate will be
$73 per year.
Motion: It was moved, seconded and duly carried to recommend approval to the Board
of Directors. Directors Gullixson and Leyes opposed.
e. FAHR00-43: Adopt Ordinance No. OCSD-_, Amending Table C of Ordinance
No . OCSD-06, Relating to Source Control Permit User Fees,
setting the rates for 2000-01 ..
Motion: It was moved, seconded and duly carried to recommend approval to the Board
of Directors. Director Gullixson voted no.
f. FAHR00-44: Adopt Ordinance No. OCSD-_, Amending Table B of Ordinance
No. OCS0-05, Continuing and Establishing Sanitary Sewer Service
Charges.
Motion: It was moved, seconded and duly carried to recommend approval to the Board
of Directors.
g, FAHR00-45: Approve an increase to the Temporary Employment Services total
contracts by $200,000, from $1,000,000 to $1 ,200,000 for
remainder of Fiscal Year 99-00, and approve funding in the amount
of $2,402,000 for Fiscal Year 00-01.
Motion: It was moved, seconded and duly carried to recommend approval to the Board
of Directors.
(13) INFORMATION PRESENTATIONS
a. FAHR00-46: 2000-01 Budget Status
Controller Mike White presented the proposed 2000-01 Joint Operating Budget
and explained the changes. David Ludwin presented the proposed Capital
Improvement Program budget for the coming year. The final documents will be
presented to the FAHR Committee at its June meeting and submitted to the Board
for approval at its June 28 regular meeting.
b. FAHR00-47: Update on COP Restructuring
Financial Manager Steve Kozak updated the members on the status and
Minutes of the Finance, Administration and Human Resources Committee Meeting
Page 6
May 10, 2000
development of the approved two-phase financing plan to restructure and
modernize the District's existing COP long-term debt. He also reported that all
three municipal bond rating agencies, Moody's, S&P and Fitch, awarded "'Aa"
category credit ratings to the District. This allows the District to move forward with
final structuring and issuance of the Series 2000 COPs, and with substitution of
modernized bond documents for the 1992 and 1993 COPs.
Mr. Kozak also reported that Director Swan had contacted staff and requested
that his support for issuing the Series 2000 Refunding COPs as variable rate debt,
and including the issuance of an additional $150 million reimbursement financing
piece with the Series 2000 Refunding COPs. Director Boyd expressed concern
about the competitive bidding process for underwriters. Staff will review its
practices and consider bidding all issues.
Motion: It was moved, seconded and duly carried to receive and file the report; to
recommend a financing of the $150 million reimbursement but as an issue
separate from the current refunding issue.
(14) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY
There were none.
(15) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR
ACTION AND STAFF REPORT
There were none
(16) CONSIDERATION OF UPCOMING MEETINGS
The next FAHR Committee meeting is scheduled for June 14, 2000 at 5 p.m.
(17) CLOSED SESSION
The Chair reported that the Committee would meet in Closed Session, as authorized by
Government Code Section 54957.6, to discuss and consider labor negotiations with Local 501
and SPMT Units.
The Committee convened in closed session at 7:40 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 No. 17(a)(1).
At 8:30 p.m., the Committee reconvened in regular session.
Minutes of the Finance, Administration and Human Resources Committee Meeting
Page 7
May 10, 2000
(19) ADJOURNMENT
The Chair declared the meeting adjourned at approximately 8:30 p .m .
Submitted by:
1Vadooldele 11wp.dlelllg•nde\FAHRIFAHR20<Xll2000 Wnute.sVJ51000 FAHR MIN.doc
FAHR COMMITTEE Meeting Date To Bel. of Dir.
06/14/00 N/A
AGENDA REPORT Item Number Item Number
FAHR00-49
prange County Sanitation District
FROM: Gary Streed, Director of Finance
Originator: Steve Kozak, Financial Manager
SUBJECT: CERTIFICATES OF PARTICIPATION (COP) MONTHLY REPORT -
MAY2000
GENERAL MANAGER'S RECOMMENDATION
Receive and file Certificates of Participation (COP) Monthly Report for the month of
May2000.
SUMMARY
Since June 1995, the daily rate COP program remarketing agents have been
PaineWebber for the Series "A" and the 1993 Refunding COPs, and J.P. Morgan for the
Series "C" COPs. Most fixed rate Series "B" COPs have been refunded and the 1992
Refunding COPs have always been remarketed by PaineWebber in a weekly mode.
During the month of May, the District's variable interest rate COPs performed at a
slightly higher average interest cost than the benchmark composite index. Over the last
year, the District's variable rate COPs performed at a slightly lower average interest
cost than the benchmark. The benchmark composite index consists of several variable
rate COPs issued by other utility agencies similar in par amount and credit quality to the
District's COPs.
PROJECT/CONTRACT COST SUMMARY
None.
BUDGET IMPACT
0 This item has been budgeted.
0 This item has been budgeted, but there are insufficient funds. 0 This item has not been budgeted.
[81 Not applicable (information item)
ADDITIONAL INFORMATION
For the month of May 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 Aswap.=:
H:\wp.dta\agendalFAHR\FAHR2000\2000 Agenda Reports\FAHR00·49.doc
Reo.ised: 8/20/98 Page 1
The second bar chart entitled, ucomparative 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.dtalagenda\FAHRIFAHR2~000 Agenda Repo.WIFAHRC0-49,dcx:
Revised: 8/20/98 Page2
Prepered by Finance, 06/05/2000, 9:37 AM
COMPARATIVE DAILY COP RATE HISTORY REPORT
MAY, 2000
6.00...--~~~____:~================================================================!!!!!...~--.
4.00
-~ 0 -UJ 3.00 I-~
2.00
1.00
'
0.00 I
DATE m m m m m m m 0 0 0 0 0 m m m m en en m 0 0 0 0 0 r:: '3 ci) a. ..... > u-c.-.J:I ...: ...: > ::J ::I (1) u 0 (1) C'O (1) C'O a.. C'O .., -, <( en 0 z 0 -, u. ~ <( ~
DOCSD a COMPOSITE INDEX
G :\excel .dte\fin\2220\geggi\Finance\dailycopintrate .xis
G) ,, ~ 0 ; ~ ~ "2 !!. RATE(%) !. ~ m ~ m :s 0 ..a. N ~ ~ ?' 0) 'Tl ::J :; I\) 0 b b 0 b 0 0 I» "' .~ "' 0 0 0 0 0 0 0 0 16 09-Jun-99 ~ ~ l.Q
i; 23-Jun-99 p;; :r Ill ~ ::J ~ 07-Jul-99 ID ::0 ~ )> -i )> m 21-Jul-99 s:: I en ;-i
~ 04-Aug-99 0 18-Aug-99 0 en 01-Sep-99 c
15-Sep-99 0
29-Sep-99 0
""O
13-0ct-99 c
+f > 27-0ct-99 -r-)>""O 3: -< -Q> 10-Nov-99 G>-· => ~ ~ cnco ~~ 24-Nov-99 Q) co "O O' .. O' CD 08-Dec-99 N ..., m 0
22-Dec-99 0 :::c 0 -05-Jan-OO en
++ -4
19-Jan-OO 0 en<-~ o ~ o. 02-Feb-OO G>~ coo ~ 16-Feb-OO ;o ~Q) m (I)=>
"O 01-Mar-OO "tJ
0 15-Mar-OO ;o
29-Mar-OO -4
12-Apr-OO
26-Apr-OO
10-May-OO
24-May-OO
COP RATE HISTORY
COMPARISON OF HIGHEST & LOWEST RATES
4.90 ·--······································································-·-··-·-·······················-··-··················································-························································--·····
4.65 ·················································································································-···················································································
4.40 ............................................................................. -..................................................................................................................... _
4.15 ..................................................................................................................................................................................................... .
3.90 ·························································································································································-··················-···--··················
~ 3.65 .................................................................................................................................................................................................... ..
0 -w t-~ 3.40 .............................................................................................................................................................. .
2.90 ....
2.65 ....
2.40 ....
2.15 ....
HIGH
LOW
l!I Highest rate
G:\excel.dta\fin\2220\geggl\Flnance\RATEH IST _HILO _bargraph
D OCSD/J.P. Morgan • OCSD/PaineWebber ~ Lowest rate
Prepared by Finance, 06/05/2000, 9:42 AM
Prepared by Finance, 06/05/2000, 9:38 AM
Jun-99
Jul-99
Aug-99
Sep-99
Oct-99
Nov-99
Dec-99
Jan-00
Feb-00
Mar-OO
Apr-00
May-00
' AVERAGE
DAILY COP RA TE HISTORY
COMPARISON OF MONTHLY AVERAGES
JUNE, 1999 -MAY, 2000
OCSD
$100M $98.5M $46M
Series"A" Series"C" Series 93 Ref
PaineWebber J.P. Morgan PaineWebber
3.30 3.25 3.30
2.35 2.36 2.35
2.82 2.82 2.82
2.98 2.97 2.98
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
3.20 3.18 3.20
3.46 3.44 3.46
4.76 4.80 4.76
3.05% I 3.05% I 3.05%
ESTIMATED ANNUAL INTEREST
PAYMENTS PER $100M PAR AMOUNT $ 3,050,833 $ 3,053,333 $ 3,050,833
•FOOTNOTE
Composite index consists of the following COP transactions:
• IRWD, Series 86, $60M, Smith Barney
• IRWD, Series 93 "A" Refunding, $87.6M, Bankers Trust
. IRWD, Series 93 "B" Refunding, $41.SM, J.P. Morgan
• IRWD, Series 95 Refunding, $117.SM, PaineWebber
Composite
Index •
3.28
1: 2.36
2.83
2.98
3.03
3.38
2.97
2.50
1.99
3.22
3.49
4.73
3.06%
$ 3,063,333
• Western Riverside Co. Reg. Wastewater Auth., Series 96, $25.4M, PaineWebber
• Orange Co., Irvine Coast Asst. Dist. 88-1, $94.SM, J.P. Morgan
• SCE, $192M, Lehman
G:\excel.dta\fin\2220\geggi\Finance\COPdally$rate comparison
FAHR COMMITTEE Meeting Date To Bd. of Dir.
06/14/00
AGENDA REPORT Item Number Item Number
FAHROO·SO
Orange County Sanitation District
FROM: Lisa Tomko, Director of Human Resources & Employee Development
Originator: John Weingarden, Human Resources Analyst
SUBJECT: EMPLOYMENT STATUS REPORT AS OF JUNE 1, 2000.
GENERAL MANAGER'S RECOMMENDATION
Receive and file the Employment Status Report.
SUMMARY
Total FTE headcount at the District as of June 1, 2000 is 496.75.
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.
C8] Not applicable (information item)
ADDITIONAL INFORMATION
The District had a full-time equivalent (FTE) headcount of 496.75 as of June 1, 2000.
The actual number of employees was 507.
There were no promotions during the month of May:
There were four new employees hired during the month of May.
• Part Time Secretary (Purchasing)
• EDMS Lead (Planning & Design)
• Sr. Accounting Clerk (2) (Accounts Receivable)
\\tadoo\data1'tNp.dta\agenda\FAHR\FAHR2000\2000 Agenda Repoits\FAHRQ0.50.dot
Revised: 8/20/98 Page 1
ALTERNATIVES
Not applicable.
CEQA FINDINGS
Not applicable.
ATTACHMENTS
June 01, 2000 Employment Status -Report.
Performance compared to 3-Year Staffing Plan.
lltadonldeta1WJ>.clta\agendalFAHR\FAHR2000\2000 Agenda ReportslFAHR00.50.dot
Rflll!Md: 8120198 Page2
00/0112000-10:04 AM
Employment Status Report
Regular Regular Actual Va<:ant Budget Plan Plan Positions
Regular Part-time Part•lime FTE. Positions FTE FTE FTE wfin Final plan
Full-time 20hours 30 hours Conrro<:t Intern LOA Count FY99-00 99-00 ()(>.()1 01-{)2 (FY01·02)
11 o -General Management Admin 300 0.00 0 00 0.00 0 00 000 3.00 1.00 4 00 4.00 4.00 1 00
Total General Management 3.00 0.00 0.00 o.oo o.oo o.oo 3.00 1.00 4.00 4.00 4.00 1.00
210. Finance Administration 4,00 0 00 0.00 0.00 o oo 0 00 ·4.00 0.00 4.00 4 00 4.00 o.oo
220 -Accounting 14.00 0.00 o.oo 0 00 0.00 0,00 14.00 2.00 16.00 16.00 1600 2.00
230 -Purchasing & Warehousing 14 00 1.50 0.00 0.00 0.00 0.00 15.SO 2.00 17.50 17 50 17.50 2.00
Total Finance 32.00 1.50 0.00 0.00 0.00 0.00 33.llO 4.00 37.50 37.50 37.50 4.00
310 ·Communications 7,00 o oo o.oo 0,00 0 00 1.00 8.00 1.00 900 9 00 900 1.00
Total Communications 7.00 0.00 0.00 0.00 0.00 1.00 8.00 1.00 9.00 9.00 9.00 1.00
510 -HR & Employee Del/elopment 9.00 0.00 0.75 000 o oo 0.00 9.75 0:50 10.25 10 25 10,.25 0.50
Total Human Resources 9.00 0.00 0.75 0.00 0.00 0.00 9.75 0.60 10.25 10.25 10.25 0.50
610 -Technical Services Admin 2 00 0 00 0.00 0.00 0.00 o.oo 2.00 0.00 2.00 2.00 2.00 0 00
620 -Environmental Compliance & Monitoring 18 00 o oo 0,00 o oo 1.00 000 19.00 1.50 20,50 20.50 20,50 1,50
630 -Environmental Laboratory 29.00 2.00 0.00 o.oo 0 50 o 5o 32,00 0.00 32.00 32.00 32.00 0 00
640 -Source Control 33,00 0.00 0.75 0.00 000 000 33.75 0.00 33.75 33.75 33,75 o.oo
650 -Safety & Emergency Response 8,00 0.00 0.00 0.00 0.50 0.00 8.50 •t .00 7.50 7 50 7.50 ·1 00
0 00
Total Technical Services 90.00 2.00 0.75 0.00 2.00 0.50 K.211 uo 95.75 95.75 95.75 0.50
710 -Engineerlng Administration 3.00 0,00 0.00 0,00 0.00 0,00 3.00 o,oo 3.00 3 00 3,00 0.00
720 -Planning & Design Engineering 29.0() 0.(10 0.75 0.00 a.so 0.00 30.25 5.00 35.2S 35.25 35.25 5 00
730 -Const11Jation Management 36.00 0.00 000 0.00 0 00 1.00 37.00 -0.25 36 75 36.75 36.75 -025
Total Engineering 68.00 o.oo 0.75 o.oo o.so 1.00 70.26 •.76 75.00 75.00 75.00 4.75
420 -Collection Facilities Mice 18.50 0.00 0.00 0.00 0.00 0.00 18.60 ·1.00 17.50 1950 19.50 1.00
430 -Plant Maintenance 29.50 0.00 o.oo 0 00 o.oo 0.00 29.50 0.00 29.50 29.50 28.SO -1.00
810 -0 & M Administration 2.00 0.00 0.00 0.00 0.00 0.00 2.00 1.00 3.00 2.00 2.00 0.00
820 • 0 & M Process Support 8.00 0.00 0 00 a.so 0.50 0.00 9.00 1.00 10.00 9.25 9.25 0.25
830 -Plant 1 Operations 32.00 050 o oo 0 00 0.00 0.00 3.2.SO 0.83 33.33 34.33 34.33 1.83
840 • Plant 2 Operations 39 00 0.00 0.00 000 000 000 39.00 0:33 39.33 37.33 37 33 -1.67
850 -Meohanrcal Mtce 44.00 0,00 0 00 0.00 0.00 0.00 44,0Q 1.50 45.50 45.50 45.50 1.50
860 • Electrical & I nstnimentation Mice 55.00 0.00 0.00 0 00 000 0.00 55.00 0.50 SS.SO 55.50 55 50 0.50
870 -Cogeneration 9.00 0.00 0.00 o oo 000 0.00 9.00 1.34 10 34 10.34 10 34 1,34
880 • Air Quality & Special Projects 9 00 0,00 0.00 o.oo 0.50 0.00 9.50 0.50 10,00 9.50 9.50 0.00
Total Operations & Maintenance 246.00 0.50 0.00 0.50 1.00 0.00 2".00 -6.00 254.00 252.75 251.75 '.l.75
910 -IT Admln 2 00 o.oo 0.00 0.00 o.oo 0.00 2.00 0.00 2.00 2.00 2 00 0.00
930 -Customer & Network Support 12.00 0.00 0.00 0.00 o oo 0 00 12.00 3.00 15.00 15.00 15.00 3.00
940 · Programming & Database Sys 7 00 000 0.00 0,00 0,00 0.00 7.00 0.00 700 7 00 7 00 0 00
950 -Process Controls Integration 8.00 0.00 0.00 000 0.00 0 00 8.00 1.00 9.00 9.00 9 00 1,00
Total Information Technology 29.00 0.00 o.oo 0.00 0.00 0.00 2.9.00 4;00 33.00 33.00 33.00 uo -
Total Stafllna 414.001 4..001 2.261 o.601 3.601 2.150 496.76 tt.16 618.'60 517.26 616.26 19.50
Offers Outstanding: 4..00
Recruitments pending, but not offered: 9.00
Ac11.1al FTE'll with curntnt nic:rultments tllled: -609.T.6
g:lexe<!I dlo\lu\510\weinganlen\3-Year Slaffin9 Plim
Performance to 3-Year Staffing Plan
. .
550
540 •• ....
....
530
.......
520 -. ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-~
510
500
490
480 • FTE Headcount
-· • · -3 Year Staffing Plan
470
J AS 0 ND J F MAM J J AS 0 ND J F MAM J
l FY 98-99 I FY 99-00 I
.\ FAHR COMMIITEE Meeting Date To Bd. of Dir.
06/14/00 06/28/00
AGENDA REPORT Item Number Item Number
FAHR00-51
Orange County Sanitation District
FROM: Gary Streed, Director of Finance
Originator: Steve Kozak, Financial Manager
SUBJECT: ANNUAL RENEWAL OF THE DISTRICTS ALL-RISK PROPERTY ANO
EARTHQUAKE INSURANCE PROGRAM, FY 2000-01
GENERAL MANAGER'S RECOMMENDATION
Renew the District's All-Risk Property and Earthquake Insurance Program for the period
July 1, 2000 to July 1, 2001, in an amount not to exceed $955,000.
SUMMARY
This agenda report recommends the annual renewal of All-Risk Property and
Earthquake insurance coverage for the District for FY 2000-01. The All-Risk insurance
program provides comprehensive coverage for the District's real and personal property
from all perils including fire, flood, earthquake, and business interruption.
The FY 2000-01 All-Risk program is recommended for renewal with continuation of an.
enhanced $300 million blanket loss limit for fire damage. Because capacity and pricing
in the property and casualty insurance market has tightened in recent months, the
premium for FY 2000-01 will be greater than last year ($955,000 vs. $890,250), and the
loss sublimit for earthquake damage will be reduced ($50 million vs. $65 million).
However, the FY 2000-01 premium remains lower than the FY 1998-99 premium
($1,020,000); provides greater earthquake coverage than FY 1998-99 ($50 million vs.
$40 million); and includes a new coverage enhancement of a $15 million deductible cap
on any earthquake loss. Sufficient funds have been budgeted to cover premium costs.
PROJECT/CONTRACT COST SUMMARY
N/A
BUDGET IMPACT
~ 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.
0 Not applicable (information item}
H:\wp.dtalagenda\FAHRIFAHR2000\2000 Agenda Reports\FAHR00·51.doc
Revised: 8/20/98 Page 1
ADDITIONAL INFORMATION
Background
The District's FY 1999-00 All-Risk program has covered the District's property with a
$300 million blanket loss limit for all perils, including flood damage, and a $65 million
sublimit for earthquake damage. The deductible for earthquake related claims is
calculated at 5% of loss, subject to a $100,000 minimum per occurrence. The
deductible for all other perils is $25,000 per occurrence. Multiple insurance carriers
underwrite the All-Risk program to distribute risk exposure and to ensure competitively
bid premiums. Thus, the District's premium costs are controlled, while obtaining
maximum coverage levels for the District.
2000-01 Renewal Cycle
For a second year, Robert F. Driver Associates, the District's Broker of Record,
marketed renewal of the District's All-Risk Program through a nationwide joint purchase
property insurance program called Public Entity Property Insurance Program (PEPIP). It
is important to note that the joint purchase property insurance program involves no
pooling or sharing of coverages with any other public entities.
As a result of the significant purchasing power ($20 million combined annual premium)
of the PEPIP joint purchase program, the FY 2000-01 renewal option will maintain the
existing $300 million blanket coverage, and will mitigate premium cost increases
prevalent in today's restrictive property and casualty insurance market. However, as
reported by the attached Robert F. Driver letter, the earthquake sublimit will be reduced
from $65 million to $50 million due to pricing considerations. The cost of an additional
$15 million in earthquake coverage would cost another $225,000. To mitigate the
reduction in the earthquake sublimit, Driver successfully negotiated a $15 million cap on
the deductible for the $50 million sublimit, thereby protecting the District's exposure to a
large deductible payment in the event of loss.
Recommendation
The 2000-01 All-Risk program is recommended for renewal through the PEPIP joint
purchase program with a $300 million blanket loss limit for all perils, and a $50 million
loss limit for earthquake coverage.
The premium cost for FY 2000-01 will not exceed $955,000, including taxes and fees.
Sufficient funds have been budgeted to cover premium costs.
ALTERNATIVES
1. Self-insure for all property-related exposures.
2. Self-insure for earthquake-related perils.
3. Purchase additional $15 million earthquake coverage at an annual premium cost
increase of $225,000.
CEQA FINDINGS
NIA
H:Wwp.dlalilgenda\FAHR\FAHR~ Agenda R1!1Jofts\FAHROO.G1 .doc
RIMsecl: 8l20/98 Page2
ATTACHMENTS
1. Broker of Record Letter Dated June 2, 2000
H:\wp.dla\agenda\FAHRIFAkR2000.2000 Agenda ReportsiFAHRCO.S1.doc
Revised; 8(20/98 Page3
Ril£ _R_O_B_E_R_T_F_._D_R_I_V_E_R_A_S_S_O_C_IA_T_E_S __ a_D_iv_is_io_n _or_R_ob_e_rt_F_. n_r_iv_er_c_o_.,_1n_c. __
.......,:. Founded on knowledge. integrity and service.
ASSOCIATES'
June 2, 2000
Mr. Steve Kozak, Financial Manager
Orange County Sanitation District
PO Box 8 127
Fountain Valley, CA 92728
RE: All Risk Property Insurance Renewal, FY 00-01
Dear Steve:
We are finalizing our marketing efforts for the current renewal through July l, 2001 at a
$300 million coverage level including flood with a $50,000,000 earthquake sub-limit of
coverage. The annual premium cost should not exceed $955,000.
Annual premium costs have risen slightly, and earthquake coverage at reasonable cost
factors, is becoming less available due to an increasingly restrictive market.· To
underscore this fact, Lloyd's London has quoted an approximate pre mium of $225,000 to
provide an additional $15,000,000 of earthquake coverage which would provide the same
overall earthquake coverage as last year, but at a 30 per cent (30%) higher overall cost
As further evidence of deteriorating market conditions, we attach a schedule of excess
earthquake insurers who have either reduced their coverage under the renewal program or
who have declined to offer coverage.
We believe however, that the PEPIP primary layer joint purchase program, which the
District joined last year, has mitigated many of these negative marketplace conditions.
PE PJP's large premium volume of more than $20 million should continue to stabilize the
further impact of continuing marketplace restrictions for PEPIP participants, such as the
rnstrict. We are confident that the program with its provision of broad terms and
conditions, as evidence by the provision of a maximum earthquake deductible of $15
mi!Hon remains very competitive in terms of both price and coverage. For further
perspective, please note that the proposed insurance renewal affords more earthquake and
fl ood coverage at a lower cost than tbe District~s 1998 program, which in turn was
considerably less expensive th an in previous years.
Note that there is no pooling or sharing of coverage with other entities under the program
in which we are still able to take advantage of scale economies in the marketplace to·
realize superior pricing and coverage with all insures rated "A" by AM. Best Company's
Rating Guide.
Newport Beach
-1041 M<1cAn/111r Blvd., #300, P.O. Box 6450. Newport Beach. California 92658-6450 • (949) 756-027 I • Fax (9:./9) 756-2713
lie# OC36861 • www.rfdriver.com
San Diego Escondido Sacramento Fresno Sa11 Francisco
June 2, 2000
Orange County Sanitation District
Page 2
We recommend the group purchase program (PEPIP) option at $300 million with a $50
million earthquake sub-limit and a $15 million maximum earthquake deductible cap for
its obvious cost and coverage benefits as well as for what we envision to be a much more
stable placement should marketplace conditions deteriorate.
We shall forward a schedule of participating insurers ·and summary detailing important
policy terms and conditions under separate cover.
Sincerely,
ROBERT F. DRIVER ASSOCIATES, INC.
~~/(¥~
Donald H . McLean
First Vice President
•' . , Orange County Sanitation District
The following markets have declined to participate:
ACE USA -DECLINED EXCESS CAPACITY USED UP IN PRIMARY
PARTICIPATION OF OCSD
Affiliated FM -NO DIC COVERAGE AND NO ZONE B NEWPORT FAULT EQ
Agricultural (Great American) -REDUCED EXCESS CAPACITY, PART USED UP
IN PRIMARY PARTICIPATION OF OCSD *REDUCED EXCESS LIMITS BY
$3,000,000
Arrowhead (Clarendon)-THE IRAS READINGS ARE VERY HIGH IN THIS AREA
NO PML CAPACITY IN THIS ZONE
Associated -TO LARGE FOR PRIMARY /FIRST EXCESS
Commonwealth -FAULT EXPOSURE/SOIL
Coregis -DECLINED EXCESS CAPACITY USED UP IN PRIMARY
PARTICIPATION OF OCSD
Essex -NEWPORT FAULT EXPOSURE, CONCENTRATION OF TIV and IRAS
READINGS ARE VERY HIGH IN THIS AREA
First State -NEWPORT FAULT EXPOSURE THE IRAS READINGS ARE VERY
HIGH IN THIS AREA, PREMIUM TOO LOW
Fulcrum -TIV TO LARGE
General Star -NEWPORT FAULT EXPOSURE, CONCENTRATION OF TIV and
IRAS READINGS ARE VERY HIGH IN THIS AREA
Great American -VERY HIGH PML READING FROM IRAS and PREMIUM TOO
LOW
*ICW -DECLINED THIS YEAR LAST YEAR ACCOMMODATION LOST
$3,000,000
..
Northshore Management -NEWPORT FAULT EXPOSURE AND FORM
Pause (Reliance IL) -CAPACITY USED IN PEPIP CANNOT ADD MORE
NEWPORT FAULT EXPOSURE
Pacific Select -NEWPORT FAULT EXPOSURE AND FORM
RLI -*REDUCED BY $2,000,000 DUE TO HIGH PML IN ZONE B
Royal (E & S)-NEWPORT FAULT ACCUMULATIONS AND PREMIUM TOO LOW
St. Paul -LIMITS WITHIN PML DUE TO HIGH IRAS READING AND LOW
PREMIUM
Safeco (F. B. Beattie)-NO LONGER OFFERING CA EARTHQUAKE
*Travelers-HIGH IRAS READING AND LAST YEAR WAS ACCOMMODATION
LOST $2,500,000
USF&G I St. Paul -CAN NOT ATIACH UNDER $100 MILLION
Wausau -PRICING TOO LOW AND NEWPORT FAULT EXPOSURE
Zurich -WILL NOT WRITE DIC AND ONLY A PRIMARY MARKET
Munich Re -NO MORE ZONE B NEWPORT FAULT CAPACITY
Swiss Re -NO MORE ZONE B CAPACITY
XL EUROPE -NO MORE CAPACITY FOR ZONE B AND LOW PRICING
Lloyds -PRICING TOO LOW
FAHR COMMITTEE Meeting Date
06/14/00
AGENDA REPORT Item Number
FAHR00-52
Orange County Sanitation District
FROM: Gary Streed, Director of Finance
Originator: Steve Kozak, Financial Manager
SUBJECT: ANNUAL RENEWAL OF BOILER & MACHINERY INSURANCE
PROGRAM, FY 2000-01
GENERAL MANAGER'S RECOMMENDATION
To Bd. of Dir.
06/28/00
Item Number
Renew the District's Boiler & Machinery Insurance Program for the period July 1, 2000
to July 1, 2001, with CNA Insurance Company, in an amount not to exceed $70,792.
SUMMARY
This agenda report recommends the annual renewal of Boiler & Machinery insurance
coverage for the District for FY 2000-01. T.he Boiler & Machinery insurance program
provides comprehensive coverage for loss caused by machinery breakdown and
explosion of steam boilers or other covered process equipment, including damage to
the equipment itself and damage to other property caused by a covered accident.
Sufficient funds have been budgeted to cover premium costs.
PROJECT/CONTRACT COST SUMMARY
NIA
BUDGET IMPACT
~ This item has been budgeted. (line item: )
0 This item has been budgeted, but there are insufficient funds. 0 This item has not been budgeted. D Not applicable (information item)
ADDITIONAL INFORMATION
Background
The District's FY 1999-00 Boiler & Machinery insurance program provides coverage
($100 million per occurrence/$100,000 deductible) for losses caused by covered
machinery breakdown (e.g., motors, steam turbines, digesters, co-gen engines).
Damages to the equipment, as well as damages to other property and improvements
caused by the machinery breakdown, are covered by the boiler & machinery insurance.
This program augments the District's all-risk property insurance which covers perils
such as fire, flood, and earthquake.
H:\wp.dtalagenda\FAHRIFAHR200<Jl2000 Agenda Reports\FAHROJ.52.doc
Revised; 8/20/98 Page 1
2000-01 Renewal Cycle
Robert F. Driver Associates, the District's Broker of Record, has completed their survey
of the current Boiler & Machinery insurance market, and recommends that the District
renew Boiler & Machinery insurance coverage with CNA Insurance Company for
FY 2000-01.
To analyze available coverage levels and premium costs, Driver marketed the District's
Boiler & Machinery insurance requirements to three insurance carriers. Hartford
Insurance Company, the District's current boiler & machinery insurance underwriter,
quoted the District a premium cost of $81,979, an increase of $10,693 above the
1999-00 premium ($71,286). Hartford offered no explanation for their proposed 15%
premium increase. Their proposal included no coverage enhancements.
The two other proposals from CNA Insurance Company and Travelers Indemnity
Company were much more competitive. Both firms proposed basic coverage limits
comparable to the District's existing program ($100 million per occurrence, with a
$100,000 deductible). Further, both proposals contained certain provisions that
improved upon coverages of the expiring policy underwritten by Hartford.
However, while the CNA premium proposal ($70,792) is approximately the same as the
Travelers premium proposal ($70,910), the CNA proposal contains several additional
coverage enhancements over and above the Travelers proposal. In particular, the CNA
policy includes a $2 million aggregate sublimit for earthquake resultant damage to
covered equipment. This is a significant added coverage to protect the District's
investment in motors, steam turbines, digesters, and co-gen engines.
The table below describes the improved coverages provided by the CNA proposal:
BOILER & MACHINERY INSURANCE COVERAGE ENHANCEMENTS
CNA
EXTRA EXPENSE $100,000,000
HAZARDOUS SUBSTANCE 1,000,000
WATER DAMAGE 10,000,000
RELATED DAMAGE 10,000,000
DEMOLITION 100,000,000
ERRORS & OMISSIONS 10,000,000
AMMONIA CONTAMINATION 10,000,000
COMPUTER EQUIPMENT 2,000,000
SERVICE INTERRUPTION 10,000,000
EARTHQUAKE DAMAGE 2,000,000
PREMIUM COST $70.792
H:\wp.dbilagenda\FAHRIFAHR2000\2o00 A91t11da Reports\FAHR00-52.doc
Re'<ised: 8/20l98
TRAVELERS
$100,000
250,000
500,000
500,000
100,000
1,000,000
500,000
25,000
Not Covered
Not Covered
$70.910
Page2
Conclusion
CNA Insurance Company, with more than $2 billion in reserves, is rated "A"IFSC XV
(Excellent) by AM. Best Company (the insurance industry rating agency), for its overall
ability to meet its obligations to policyholders.
CNA is a strong insurance company and can offer Boiler & Machinery insurance with
high coverage levels for operations as large and complex as the District. Additionally,
they offer the most competitive pricing for the 2000-01 renewal period. Staff concurs
with Driver's findings and recommendation. Sufficient funds are contained in the current
budget to cover premium costs ($70, 792).
ALTERNATIVES
NIA
CEQA FINDINGS
NIA
ATTACHMENTS
1. Broker of Record Letter dated June 2, 2000
SK:lc
H;\wp,dta\agendalFAHRIF AHR2000\2000 Agenda Reports IF AHR00-5.2.doc
Revised; 6120198 Page 3
~,~~~-~~~~~~~ \..:7' ~U/~ ROBERT F. DRIVER ASSOCIATES a Division of Robert F. Driver Co., Inc.
"9:1::,
ASSOCIATES'
Founded on knowledge, integrity and service.
June2, 2000
Mr. Sleve Kozak
Orange County Sanitation District
P.O. Box 8127
Fountain Valley, CA 92728
RE: Boiler and Machinery Insurance
Dear Steve:
Confirming our recent discussion, we enclose a revised proposal including Travelers
Indemnity Company's quotation, as well as those of Hartford and CNA.
We believe that the CNA proposal offers the superior quotation at an annual premium of
$70,792.00. Not only does CNA have a slightly lower premium, there are significantly
higher coverage sub-limits of liability as well as several significant coverages, such as
earthquake-resultant damage, not offered by Travele.rs or Hartford.
We recommend CNA based upon its obvious coverage benefits at a competitively lower
cost.
Sincerely,
ROBERT P. Dk!VER ASSOCIATES DoCd ;.tc~
Senior Vice President
Newport Beach
4041 MacAnhur lJlvd., #300, P.O. Box 6450, Newport Beach, California 92658-6450 • (949) 756-0271 • Fax (949) 756°2713
lie# OC36861 • www.ifdriver.com
San Diego Escondido Sacramento Fresno San Francisco
INSURANCE COMPANY:
BEST'S GUIDE RATING:
CALIFORNIA ST A TIJS:
POLICY TERM:
COVE RACE:
LIMITS:
SUBUMITS:
HnardoUJ Sabtrance:
'Ote K"'\fo.td Steam Boiler and Inspection
Company
A+, Superior; Class 10, PollcyholdeB' Surplu.s of
SS00,000,000 !O 1750,000,000
Adlrti~
March I, 1999 to July I, 2000
CornPl"hemive Coverage Including PmdllClion
Machillt'I}' and Publ.lc Ulill!S' Equipment
sic.,, EJtpl0<lon
Mechanical Breakdown
El~cal lnfury
Spe<:ffic covenge C1<1eMions for:
i;.pedl!lng Expmsc
Joint Loss Agreement
Kazardous Substance
Wakr01111agc
Ammonia Contaminallo11
Business Interruption rcl•ted to profit from
sale of electric~ ofSCE
Ocmolleion, Increased CoJt of ConsfJ'Uclion
Consequential Oamqes
OigestcB, Seitlinr Bulns defined as i
covered object.
SI00,000,000 Combined Limit Property Dtmage
and Time Element
Included ln Polley Umil
s 100,000
s 250.()00
s 2so.ooo
ORANGE COUNTY SANITATION DISTRICT
BOJLERANt> J\IACHJNERV
Jt/LV I, 2000 TO JULY I, lO(ll
PROPOSAL I
PEPIP Boiler cl: Macltinery Prognm
-CNA
A. Excellent; Class Is, PollO)'holdcn' SlltJJlus or
ll.000,000,000 or more
Admitted
July I, 2000 Lo July I, 2001
Comprehensive coverage lncludlng Production
M.chilieey and Public Utility Equipment
Stc1111 Exploslon
Meclwlicll Brulcdown
ElcC1ric.ll lnJury
Bond Revenue Payments
Co••R&• includes:
EJ(pediting Expenses
Joint Loss Agteement
Huanlous Subscanee
Wat.er Damage
• Amll!ClC1ia Cont.amln11iot1
Ordm111<:eorl..aw
Service lntcnuplion
Corisequct1tlal Damqc
• £.n:hquakc Res11lll.Qt Damage
SI00,000,000 Combined Limit-Property Dam111•
.t Business lnlmllption/Exin Expense
(including Bond Revenue Interest Payments for
locllions wttere income is reported)
Included in Policy Limit
1,000,000
s 10,000,000
$ 10,000,000
PAOE I o(4
PROPOSALl
Tnveleis Jnden)nlty Company
A+,Superior; Class 15,
Policyholders' S1111>lus ofSl,000,000,000 or more
Admined
July I. 2000 to July I, 2001
Comptclicnsivc coveroge including Production
Maehlnery
St<llll ~plosion
Me<:!1111iad 8re>kdown
Electrical lnjuiy
CovcMlge includes:
Expeditl11g Expense
Joint Lou Agreement
Hazardous Substances
W.Ur Olnlagc
Ammonil Cont.1Jmina1lon
Ordin111ce or law
Media
Em>r in Description
Bl'llllds and Labels
Exic·ndecf Business lncome-30 d-rs
Testing Covenge AIMndcd
No reslrictiont or sub-limits for CFC'S and
coroputm,
Libetalludon
New Gcncntlons
Sl00,000,000 Combined Limit.Propel1)' Da.mage
and 8UJloos "*nuptionlExtn Expense
s 100,000
s 150,000
s soo.ooo
s S00,000 Spoil•ge
PROPOSALJ
The Hartford Steam Boiler and Inspecllon Orm pony
A..-, Superior; Class 10. Policyholdcis' Sorplus of
SS00,000,000 to $750,000,000
Admitted
July I, 2000 to.July i, 2001
Comprehensive coverage including Produetion
Machinery and Public Utility Equipment
Ste11m SJCploslon
Mechanical Breakdown
£1eotrical lnju.ry
Covcraae includes:
Same as Present
$100,000,000 Combined Limit-Property Damage
and lime Element
· Same u Pn:Knt
Same as Present
Same as Present
Same u Pluenl
Dcmolitiol\/lnercued Cost of
Con~trvdloa
EI1Jtdlling Ex~n.st:
EIT<ln 8t OmlHloa1:
Ammonia Conlamlaltlo•:
Media/Computer Equlpm<J1I:
Service lakrrupt1001:
Brand• 8t. L1bcb:
Ei!rth1111akt Rrt11l11nt
D11111gH
l'llOP,£1lTY DAMAGE DEDUCTIBLE:
TIME ELEMENT Ol:DUCTIBL£:
NEWLY ACQUlllED LOCATIONS:
VALUATION:
NOTICE OF CANCELLATION:
Present 1
Hartford
s 250,000
s 250,000
Coveted
s 250,000
SZS,OOO-O>mputtr Equlpme11t
l11cl11dcd In 1'nllcy Limit
Not ncl11ded
NotCovtred
$ 100,000 Mollm, El\alnes, and
Turbines over SOOhp.
S 100,000 Digcttm and It~
S 2S,OOO All Oilier lnslll'Cd
Qlljccts
30 day w1hlng period lbr all Molon, Engines, and
T111ti11«
24 hour wailing period for all other objects
s 1,000,000 90 days rq>Oft)11g
Repair or RcpllCCmenl except ocltW loss
!Ullaincd tor all time Elemellt Covengcs
JO O.ys Notice ofCancctlatlon e:cccpt 10 days for
Non-payment of pmnium
Proposal l
CNA(PEPIP)
Jnaluded in Policy Limit
s to,000,000
s 10,000,000
s 10,000,000
s 2,000,000.Computcr Equipmont
S I 0.000,000
Notcovtrtd
S 2,0001000 A1gq1lc
S 100,000 MotON, Engin«, and
Turlltnu over SOOhp.
S 100,000 Dlgesren and Rcaclors
S 2S,000 All Other lnsun:d
Objccis
S S,000 Conscquontlal o.mage
30 day waiting period for all Motors, Enalne.s, and
Twblncs
24 hourweJtl111 pcrlod for all olhcrobjcds
30 day Bond Revenue lnte~t Payments
J6S days seponing
Repair or Replacement except actual losr
sust:ein•d for all Time Eleml!llt Covcriges
60 Days Notice otC1111"ll1tion tltccpt 10 days ror
Non-payment of premium
PAGE2of4
Proposal 2
Travelers
$ 100,0()()
s 500;000
s 1,000,000
s S00,000
s lS,000 Medi&
Not covered
s 1,000,000
Not Con~
$ )00,000 MolDrs, Engines,
Clenen!On llld Turlllne! OVef
SOOhp.
S 100,0QO O!ges~ and Rcac1ors
S 25,000 All Other lruurcd
ObJem
30 day waiting period for all Motois, Engines, and
Twbilll'S'
24 hour waiting period for all other objecu
s 1,000,000 365 d11ys reporting
Repair or ~pt111:e1ncnt except actual lou
SllSUinod for all Ti!M Element Coverages
60 Days Notice ofCanceltaiion C>Ccepl 10 days for
Non-payment of premium
ProposaJ3
Hartford
Same as Pl1's¢111
Same as Pn:icnr
Same as Plcs•nt
Same as Present
Somo as l'Rsenl
Samcul'r=t
Not Excl)ldcd
Not-Covered
Same as Present
Same as Pmeftt
s 1,000.000 90 d&ys repol\lng
Repair or RcplKefl!Cnt exc~l acrual los~
sustained for all Time Elemen.1 Covuages
30 Days Notice ofCancctlatlon except 10 dey$ (or
No11·payrnent otprcmlum
PERILS EXCLUDED (l1dudln1 b.ut not
ilmit«I to):
OBJECTS EXCLUDED (lnch1dlng bur not
lll!Jit<.d lo):
Present J
Hartford
O!din111cc or Law
Nuclear Haurd
W1111nd MiUwy Ac:tion
E-111qualce Resultant Damage
Flrc or any means 10 exUngubh 1 flrc
Twiline 11nil cradtina
• C.:!Wrt C<>mputer-rclll.ed losses
Flood
Combustion Explosion
Ll&litnln1. Windstorm or ff•ll if more
sptclfle&l!y coven:d under anolher policy
Fn:czlng
Buried pipin1 or vessels dlrcctly in the
pound
Prapcny covered under any other pol Icy
Mo!OI' Vehklcs, W11crcraft, Aircraft
Non-metalllc vwel, unless meets ASME
Proposal 1
CNA (PEPD")
Similar to Pral!nt e~ccpt where noted
Coverage provided
Nucltlr Haan!
W11111d Milltaiy Action
Covcragr: Provided
Pirc or explos10fl oul.\lde the objecr 11111
occ:ws It the same lime as the accident
'Electric Dall Recognition clause (Y.2K)
Flood
Ei<ptosion except fur sti:lll\ or ccnq;fugal
explosion
Wiw:t and Lightening (flre ex!lnguishing)
Wind
FRCZllll
L~k of power, Ulht. beet,. steam or
rcliigmllon
Ex11losion of gas or unconsumed fuel fi'om
furnace
Tcstins
Bonus llld penalties or a power sales
agreement
Same as l'mcnl
Same IS Present
Sllll!C as Present
Non·.meJallic vcHcl, unless meets ASME
PAGE3of4
Proposal 2
Travelers
Similar ro Ptescnt except Whete noted
Coverage provided
Nuclear Hazard
Wu and MllltalY Action
Elflhquelco Resultant Dam1111c
Fire or 011ploslon ovtsi.clc the object lhll
occurs 11 the same dmc u the .accident
Turt>inc unit C1'1Cklng
Eleclric Dall Recognition clalllC (Y2Kt
flood
Explosion except for steam or ccnlrifiJtal
eicplosion
LisJltening (flrc extinguishing)
• Wind
Freezin1
Uck: or poMr, ligh~ hn1. -or
rc&lgcmlon
Explosion of gu or unconsumed f\lel &om
furnace
Testing
SameasPment
Same as Pment
Sune as Pl'c9ent
• Non"mctalllc vessc~ unless meets ASMB
Proposal 3
Hartford
Similar lo Present except wMrc no~d
SamcuPmcn1
Sime as Present
Same: as Present
Same as Present
Samc as Pn:Knt
Samcas~enc
Same u Present
Same as Present
S11111e as Present
Same as Present
Sameu Present
Suno u Pteunt
Same as Present
Same as Pl"Scnl
Same as Present
Same as Present
Same as Present
OBJECTS EXCLUDED (lacladlat but 001
ll•ilcdto):
TOT AL INSURED VALUES!
AM'.1JAL PREMIUM:
PresentJ
aartford
standatCls
Catalyst
Sewer piping or piping forming a pllt of a
lite pro1ection system
SIJ'uc~ foundation, cabinet or
compartment containing the object
Oragline, excavation Ot consbuotloa
cqulpmen1
Objocu m111ufactu1d by you for Nie
S 1,508,962,112
s 7l+l8'
S .2.1,810 Ei<t•iuion to 7-HlO
Proposal 1
CNA(PEPIP)
lt&11cfards
Catalyst
Sewer piping or piping forming a part or•
fire protection system
Strudure, foundation, cabinet or
compllrtment containing the objcet
Elcvaior, esCAlator, crane, hoist, ladle or
bud:c1, power shovel, dnigHne, excavator,
scale or conveyor
Object menufectun:d by you fo1 sale
Ovet!. ttove, fumace, incinerator. pot or klln
Machine or app1t11.tus used fur medical,
dllg!l<lstlc. SUJglclll, dental or pediologlcal
purposes
Felt. wire, !Q'CC!I, die, c~1111.tion pha, swing
hammer
S~iure. osblnet or compllf!ment cont~ining •
llle object
EDP Media
s 1,508,962,112
Proposal 2
Travelers
stand11ds
C&lalyst
Sewer piping or pipine forming a PAft of A
fire prolc,rion system
Stiucturc, foundition, cabinet or
companment containing the object
Power shovel, drqlinc, eKcavetor, vehicle,
aircraft, tloulng vase! or strucrun:,
~Ntock, draft tube or well~inc
Object manufactutcd by you for sele
Oven, stove, fun111cc, lnch1en1or. pot 01 kRn
Machine or ipparalUs used for medical,
dl~l)l'tlc, swsical, dental or pathological
purpo~
Felt. wire, scrttn, die, ~!on plat.c, swing
hammer
P.an ofa boiler, Rred VCl!el or elccllksteam
gel!entor dtat does not conlAill water
P.an oh VCl!el that ls not under p...uure or
Int.em&! vacuum
!,508,962,112
s 70,791 l 10,910 s 6 r ,660 (pronltd fOr lcrm 7-1 •00
to S-15--01)
PAOE 4 of•
Proposal3
Hartford
Same as Present
Same as Present
Same u Present
Same as l'rucnl
Same as Present
$ l.S08,962,l 12
S Sl,979
FAHR COMMITTEE Meeting Date
06/14/00
AGENDA REPORT Item Number
FAHR00-53
County Sanitation Districts of Orange County, California
FROM: Gary Streed, Director of Finance
SUBJECT: PROPOSED FY 2000-01 OPERATING, CAPITAL, DEBT/COP
SERVICE AND SELF-INSURANCE BUDGETS
GENERAL MANAGER'S RECOMMENDATION
1. That the FAHR Committee recommend approval of the proposed Operating,
Capital, DebUCOP Service and Self-Insurance Budgets for 2000-01 to the
Board of Directors on June 28, 2000, as follows:
Joint Works Operating/Working Capital
Worker's Compensation Self Insurance
General Liability and Property Self-Insurance
Collection System Operating
Capital Improvement Program
DebUCOP Service
SUMMARY
$46,000,000
$412,500
$1 ,919,000
$9,545,000
$83,526,000
$40,737,000
The 2000-01 Budget is enclosed for the Committee's consideration. The Budget
has been presented to the OMTS and PDC Committees at their regular May and
June meetings in order to allow each Standing Committee an opportunity to
review the proposal prior to the June Board meeting.
The entire Budget will be presented for Board consideration on June 28, 2000.
Although each Committee has had an opportunity to review the proposal, it
remains the responsibility of the Finance, Administration and Human Resources
Committee to recommend approval of the Joint Works Operating and Capital
Budgets. The remaining budgets are also being presented to the FAHR
Committee as a result of consolidation.
The FAHR Committee is requested to recommend that the Board of Directors
approve this budget.
To.lt. Bds.
06/28/00
Item Number
\lradon\dala1\wp.dla\agenda\FAHR\FAHR2000\2000 Agenda Report5\FAHR00-53,doc
Revised: 1/S/98 Page 1
PROJECT/CONTRACT COST SUMMARY
NIA
BUDGET IMPACT
0 This item has been budgeted.
D This item has been budgeted, but there are insufficient funds. 0 This item has not been budgeted.
[8J Not applicable (information item)
ADDITIONAL INFORMATION
None.
ALTERNATIVES
N/A
CEQA FINDINGS
N/A
ATIACHMENTS
1. Proposed 2000-01 Budget
GGS:lc
llladon'\dlta1....,,.dtalagendalFAHRIFAHR2000\2000 Agenda Reports\FAHR00·53.doc
R...is.d: 1/5198 Page2
FAHR COMMITEEE Meeting Date To Bd. of Dir.
6/14/00 6/28/00
AGENDA REPORT Item Number Item Number
FAHR00-54
Orange County Sanitation District
FROM: Gary Streed, Director of Finance
Originator: Steve Kozak, Financial Manager
SUBJECT: PROPOSAL FOR ISSUANCE OF CERTIFICATES OF PARTICIPATION
FOR REIMBURSEMENT OF PREVIOUS CAPITAL EXPENDITURES
FUNDED FROM THE DISTRICT RESERVE FUNDS
GENERAL MANAGER'S RECOMMENDATION
Authorize the Director of Finance to issue an RFP for Investment Banking Services,
and report back with recommendations for selection of investment banker(s) for
issuance of Reimbursement Certificates of Participation.
SUMMARY
Staff has been implementing a Board-approved plan to restructure and modernize the
District's existing Certificates of Participation (COP) long-term borrowings, including
issuance of the $190 million Series 2000 Refunding COPs. Issuance of another $150
million Serles Reimbursemeht COPs has also been reviewed. These COPs would
reimburse the District's reserve funds for previous capital expenditures. This agenda
item recommends a competitive selection process for the investment banker( s) to
underwrite the Reimbursement COPs.
PROJECT/CONTRACT COST SUMMARY
BUDGET IMPACT
r2J 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. D Not applicable (information item)
ADDITIONAL INFORMATION
Background
In March, the Committee discussed the possibility of adding a "new money" portion to
the proposed Series 2000 Refunding COPs, for the purpose of reimbursing the District
for previous capital expenditures funded from the District's reserve funds.
The financing team has reviewed applicable U.S. Treasury Regulations, the
Reimbursement Resolutions adopted by the Board of Directors, and CIP expenditure
records to determine what capital costs are eligible for reimbursement.
H:lwp.clla\agenda\FAHR\FAHR2000\2000 A119nda Reports1FAHROO·S4 doc
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Under the IRS Code, the absolute outside parameter for determining the period for
reimbursement eligibility is that the capital expenditures were paid no more than three
years before the issuance of the new COPs. Therefore, if the "new money" COPs are
issued in the next several months, the maximum recapture period would begin 36
months prior to issuance of the Reimbursement COPs. Approximately $150 million in
reserves have been expended for capital projects during the last three years, and are
eligible for reimbursement.
Financing Plan and Bond Documents
The Series 2000 Reimbursement COPs would be structured and issued as Variable
Rate COPs backed by the District's "AA" category credit rating. The proposal for the
District to issue a $150 million "new money" Reimbursement COP has been reviewed
with all three of the municipal rating agencies. The rating agency analysts have
indicated their support for such a financing as a "AA" credit.
The legal documents and agreements developed for issuance of the Series 2000
Refunding COPs would be used for the Reimbursement COPs, with appropriate
modifications. These documents include the Installment Purchase Agreement, or
master indenture, the Official Statement, and Trust Agreement.
Unlike the Series 2000 Refunding COPs, which will refinance approximately $190
million of the District's existing long:...term debt, the proposed $150 million
Reimbursement COP issue would be new long-term debt. Given the sizable par
amount of the Reimbursement COP, and to introduce an element of professional
competition for the District's business, staff recommends that the District solicit
proposals from all interested investment banking firms to serve as underwriter(s} for
the District's $150 million Reimbursement COP.
Schedule
Issuance of the Series 2000 Refunding COPs, and completion of document
substitution for the 1992 and 1993 Refunding COPs, will be completed during June
and July. Work on the RFP process for the proposed Reimbursement COPs could
start immediately thereafter. Staff already has RFP samples that can be used. The
following schedule is proposed for your Committee's review:
July & August
• Revise and distribute RFP
• Receive RFP responses
• Conduct interviews with banks
• Evaluate responses
• Prepare staff report to FAHR
H:lwp.dlalagenda\FAHRIFAHR2000\2000 Agenda ReportslFAHR00-54.doc
Revised: 8/20/98 Page2
t
September
• Present results of RFP screening process to FAHR
• FAHR selects underwriter(s) for recommendation to Board of Directors
October & November
• Revise legal documents
• Revise Official Statement
• Structure and issue COPs
ALTERNATIVES
1. Select PaineWebber and/or J.P. Morgan, the District's current COP remarketing
agents, without a competitive selection process. Several FAHR Committee
members have voiced their opposition to this alternative.
2. Structure the Reimbursement COPs as a fixed-rate competitive bid issue. This
alternative may save some time up front, but would certainly increase debt service
costs over the life of the issue.
CEQA FINDINGS
NIA
ATTACHMENTS
H:\wp.dtalagenda\FAHRIFAHR2000\2000 Agenda ReportSIFAHRCXJ.S.4.doc
ReYised: 8/20/98 Page3
FAHR COMMITTEE
AGENDA REPORT
Orange County Sanitation District
FROM: Gary Streed, Director of Finance
Originator: Steve Kozak, Financial Manager
Meeting Date To Bd. of Dlr.
06/14/00 "' ~ oo
Item Number
SUBJECT: RESTRUCTURING OF THE DISTRICT'S EXISTING CERTIFICATES OF
PARTICIPATION -STANDBY LIQUIDITY FACILITY AND TRUSTEE
BANK SELECTION
GENERAL MANAGER'S RECOMMENDATION
1. Approve selection of Dexia Credit Local de France (DCLF) as the Standby Liquidity
Facility Bank for the Series 2000 Refunding COPs.
2. Approve selection of Texas Chase Bank or State Street Bank as Trustee Bank for
the Series 2000 Refunding COPs based on lowest annual cost to the District, and
direct staff to report to Board on the successful bidder at the June Board meeting.
SUMMARY
Staff has been implementing a Board-approved plan to restructure and modernize the
District's existing Certificates of Participation (COP) long-term borrowings, which
includes issuance of the $190 million Series 2000 Refunding COPs, and substitution of
modernized and simplified bond documents for the 1992 and 1993 Refunding COPs.
This agenda item reports on the progress and status of the COP restructuring and
refinancing plan, and address the need for a Standby Liquidity Facility Bank and a
Trustee Bank for the Series 2000 Refunding COPs.
PROJECT/CONTRACT COST SUMMARY
NIA
BUDGET IMPACT
0 This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds.
0 This item has not been budgeted.
[gj Not applicable (information item)
ADDITIONAL INFORMATION
Background
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.
llradon\dala1\wp.dtalfinl210\cranelFAHR\Fahr2000\JunlCOP STATUS REPORT·June.doc
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The strategy includes a two-phase process: 1) Refund the Series "A," "B," and "C"
COPs through a single Series 2000 Refunding COP offering, backed by the District's
"AA" category credit rating; and 2) Substitute modernized bond documents for the
synthetic fixed rate 1992 and 1993 Refunding COPs that will conform to the Series 2000
Refunding COP bond documents and will put the 1992 and 1993 Refunding COPs on
parity with (rather than senior to) the Series 2000 Refunding COPs.
With this strategy, the District is viewed as a single credit structure by the rating
agencies; the legal structure for all of the District's existing COPs is streamlined;
issuance of future debt is facilitated.
The balance of this report is a status update on the progress made by the finance team
on both phases of the COP restructuring and refinancing plan since the May FAHR
Committee meeting.
Combined Action Plan
In May, the FAHR Committee concurred with the finance team to modify the original
financing schedule to merge Phases I and II (discussed below) and pursue
simultaneous completion of both components. As was discussed, while the successful
implementation of Phase I does not necessarily require completion of Phase II , most
recent discussions of the finance team with the rating agencies and the bond insurer for
the 1992 and 1993 Refunding COPs (Ambac) indicated that the greatest likelihood of
achieving the goals of modernizing and simplifying all of the District's existing COP
debt, will come from pursuing Phase I and Phase II in tandem.
Phase I -Series 2000 Refunding COPs
The core documents and covenants required for issuance of the Series 2000 COPs are
in substantially completed form. A copy of the draft Preliminary Official Statement, the
municipal equivalent of a prospectus, is attached for your information and review.
While the Installment Purchase Agreement, which contains the master covenants
governing all District debt, is considered complete for purposes of Phase I, the
Agreement is currently being reviewed by the analysts and legal counsel for the parties
to the 1992 and 1993 Refunding COPs, for substitution with these transactions.
Revisions will be incorporated so that the Agreement supports all financings.
Liquidity Facility Bank: In late April, an RFP was distributed to sixteen liquidity provider
banks for solicitation of competitive quotes for the Standby Liquidity Facility necessary
for the variable rate Series 2000 Refunding COPs. Responses were received from
seven banks on May 17.
The most responsive bid , in terms of cost, commitment period, bank credit ratings, and
expected trading value, was submitted by Dexia Credit Local de France (DCLF). The
bank is rated in the highest "AA" category by all three rating agencies. The annual cost
quoted by DCLF for a 5-year commitment on up to $200 million of COPs, is 13.5 basis
points per year. The next most responsive price quote was 16.5 basis points for a
comparable 5-year facility. By comparison, the bank facilities associated with the
llradonldata1\wp.dta\finl210\aanelFAHRIFahr2000\Jun\COP STATUS REPORT·June.doc
Re'lised: 8/20198 Page 2
District's existing Series "A'' and Series "C" COPs cost 30 and 20 basis points per year,
respectively. Staff recommends that the FAHR Committee approve selection of DCLF
as the Standby Liquidity Facility Bank for the Series 2000 Refunding COPs.
Upon selection of DCLF as the liquidity provider, the bank will complete its internal
credit evaluation of the District, and prepare the Standby Certificate Purchase
Agreement to support the issuance of the Series 2000 Refunding COPs.
Trustee Bank: A bid sheet for Trustee Bank services has been prepared for response
by Texas Chase Bank and State Street Bank, the District's current Trustee Banks for
the Series "A," "B, u and "C" COPs. These existing COPs will be refinanced by the
Series 2000 COPs, and the existing service agreements with Texas Chase and State
Street Banks will be terminated. A single Trust Agreement for the Series 2000 COPs is
needed.
Since the Series 2000 COPs is a Refunding, and not a "new money" issue, and
because both banks have provided the District with comparable levels of trust services,
and are familiar with the District's payment and accounting system requirements, staff
suggests that either Chase Texas Bank or State Street Bank be selected to serve as
Trustee for the Series 2000 COPs. The proposed bid process will ensure that the
District receives competitive pricing quotes for bank selection, and will minimize annual
costs for Trustee services. The bid sheet will be released following FAHR Committee
approval, and a recommendation for Trustee Bank selection would be ready for
confirmation at the June Board meeting.
Phase II -Series 1992 and 1993 Refunding COPs
The finance team has diligently continued to work with the bond insurer (Ambac), and
the long-term swap providers for the Series 1992 (AIG) and 1993 (SocGen) Refunding
COPs, and each party's respective legal counsel for substitution of modernized bond
documents. All parties continue to be committed to the modernization process. As
described earlier, the substitution documents will replicate those associated with the
Series 2000 COP issue.
Due to the number of parties involved, the number of representatives from each of the
parties, and the number and complexity of documents being reviewed, completion of the
substitution process is likely to extend for several more weeks.
Financing Schedule
A detailed financing schedule for issuance of the Series 2000 Refunding COPs, and
substitution of bond documents for the 1992 and 1993 Refunding COPs, is attached for
your Committee's review. The following is a summary of upcoming project milestones:
• June
• Select Liquidity Provider Bank
• Select Trustee Bank
• Finalize Phase 11 legal documents
\\radonldatai lwp, dl31fin\2H>\cranelFAHRIFaht2000\Jun\COP STATUS 'REPORT .June .dba
Revised: 8/20/98 Page3
• July
• FAHR and Board approve all Phase I and II documents
• August
• Price and market Series 2000 COPs
• Close all refunding components
ALTERNATIVES
N/A
CEQA FINDINGS
N/A
ATTACHMENTS
1. Draft Preliminary Official Statement, Series 2000 Refunding COPs
2. Financing Schedule
:SK
\lradon'dala1\wp.dtelftnl210\crane\FAHR\FaM!OOOUun\COP STATUS REPORT·June.doo
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HD&W Draft of June 8, 2000
NEW ISSUE BOOK-ENTRY ONLY RATINGS: Moody's:
Stnndard & Poor's:
Fitch:
(See "Ratings" herein)
Jn the opinion of Orrick, Herrington & Sutcliffe LLP, Special Counsel. based upon an analysis of existing laws, regulations, rulings
and col/rt decisions, and assuming, among other matters, compliance with certain covenants. interest evidenced by the Series 2000 Certificates
is excluded from gross income for federal income tax pi4rposes under Sectiot1 I 03 of the J111ernal Revenue Code of J 986 and is exempt from Sta/e
of California personal incaf1/e taxes. Jn the fiirther opin;o11 of Special Co11nsel. interest evidenced by the Series 2000 Certtflcates is 1101 a
specific preference llem for purposes of the federal individllal or corporate a/1ernaiive mininlllm la;tes. although Special Ca1111sel observes that
such i'nteresl is included in adjusted c11rrent earnings in calculating corporate alternative mi11im1Jm taxable. i/1come Special Counsel expresses
no opi11ion regardi11g a11y other tax consequences related to lhe ow11ership or disposition of or the accrual or receipt of interest evidenced by.
the Series 2000 Certifica1es. See "Tax Matters "herein
Dated: Date of Delivery
$ ___ _
Orange County Sanitation District
Refunding Certificates of Participation
(2000 Refunding Project)
Price: 100% Due: August J, __
TJ1e Orange County Sanitation District Refunding Certificates of Participation (2000 Refunding Project) (the
"Series 2000 Certificates") are being executed and del1vere<.1 pursuant to a Trust Agreement, dated as of I, 2000,
(the .. Trust Agreement") b)! and among [TRUSTEE], as trustee (the "Trustee''), the Orange County-sftnilation
Districl Financing Corporation (the "Corporation") and !he Orange County Sanitation District (the ''District"). The
Series 2000 Cenificates are being executed and delivered ro currently refund the outstaod.in& principal amount of
the Certificates of Participation (Capital Improvement Program, 1990-92 Seri.es A) (t!:te "1990 Series A
Ce1tificates") and the Certificates of Participation (Capital lmprovemeol Program, 1990-92 Series C) (the "1992
Series C Cenificates") and to advance refund a portion of the Certificates of Participacioo (Capital Improvement
Program. 1990-92 Series B) (the "1991 Series B Certificates" and, together with the Series 1990 A Certificates and
1he Series 1992 C Certificates, lhe "Refonded Certificates"), each of which were executed and delivered to Gnance
the acquisition, construction and installation of certain improvements to the District's sanitation system (lhe
"Project"), to finance a reserve fund for the Series 2000 Certificates and to pay costs of issuance of tl1e Series 2000
Certificates, as more :fuJly described herein. See "Plan of Refunding" J1erein.
The District will acquire the Project from the Corporation pursuant to an Installment Purchase Agreement,
dated as of I, 2000 (the "lnsraUment Purchase Ae:reement"), by and between tl1e District and the Corporation_
The Series 1UUO Certificates are payable rrom fttstaffrnent Payments and the interest thereon paid by the District
pursuani LO tl1e Installment Purchase Agreement.. The District's obligation to make Installment Payments, and the
interest thereon, an<.I other JJayments required under the Installment Pw·chase Agreement is a special obligation of
the District, payable solely from Ner Revenues and other funds as provided in the Installment Purchase Agreement,
consisting primarily of all income and revenue received by the District from the O(?eTation or ownership of rbe
Wastewater System remainin° after paxmenl of Maintenance and Operation Costs, as further described in "Seeurity
and Sources of Payment for t~e Series 2000 Certificates" herein. All of Ute Corporation's right, title and interest in
and to the Installment Purchase Agreement, including the right to receive Installment Payments and interest thereon
under the lnstallment Purchase Agreement, are assigned to tile Trustee under lbe Trust Agreement for the benefit of
the Owners of the Series '.:l.000 Ce11ificates.
The District has previous I¥ executed and delivered its Refunding Certificates of Participation, 1992 Series (the
"199:! Refunding Certificates") and its Refunding Ceniticates of Participation, 1993 Series (the "1993 Refunding
Certificates," ano together with the 1992 Refunding Certificates, the ''OutstJoding Senior Obli~anons"). The
District's obligation to make Installment Payments from Net Revenues is on a pari!Y with I.he District s obligation to
make payments with respect 10 its Outstanding Senior Obligations. See "Finan cial Obligations -Existing
Tndebtedliess" herein.
The Series 2000 Ce1tificares wil l initially bear iotereSl at the Daily Rate Mode and be execu1ed and delivered in
the denominations of $100,000 and wt}ole multiples \hereof. except tt:iat on~ S~ries 1009 Certificate may be in U1e
amount of $100,000 and a wbo1e muluple of $5,000 m excess thereof. While m the Daily Rate Mode and Weekly
Rate Mede, tbe interest evidenced by the Series 2000 Certificates will be com~uted on I.he basis of the actual days
elapsed and a 365 or 366-day year, as applicable_ Interest evidenced by the Series 2000 Ce11ificates will be payable
on the first Bttsiness Day of eacb calendar month, commencing on 2000.
While the Daily Rate Mode and Weekly Rate Mode are in effect, Owners of the Series 2000 Certificates (other
than Bank Certificates (described herei.11)) may elect to have their Series 2000 Certificates (or portions thereof in
3253v18
Authorized Denominations) purchased at a purchase price equal to the princi~al amount thereof, without premium,
plus any accrued but unpaid interest to the Purchase Date (the "Purchase Price ').
Subject to certain renninaoon evenls described herein, paymen~ of U1c Purchase Price will be funded by a
[Standby Certificate Purchase Agreementl, dated as of I, 2000 (the "Standby Certificate Purchase
Agreement"), by and amoog (the "Bank"), lhe Trustee and the DistricL The Standby Certificate Purchase
Agreement 1s scheduled to expire on . unless extended or terminated earlier as described herein.
The Series 2000 Certificates are being delivered in fully registeretl fom1 and, when issued, will be rcgjsrered in
the name of Cede & Co., as nominee ~of The Depository Trust Company, New York, New York ("OTC").
Individual purchases of the Series 2000 Certificates may be made in book-entry form only. Purchasers will not
receive Series 2000 Ce1tificates representing their interest io the Series 2000 Certificates purchased. Pai'ments of
principal, premium, if any, and interest on the Series 2000 Certificates will by payable by [TRUSTEEj, to DTC
which is obligated i11 tum to remit such principal, premium, if any, and interest to the DTC Participants for
subsequent disbursement to the Beneficial Owners of the Series 2000 Certificates, as more fully described herein.
See 1'The Serles 2000 Certificates" and Appendix D -''Book-Entry System" herein.
The Series 2000 Certificates are subject to optional and mandatory sinking fund prepayment prior to
maturity as mo re fully described herein. See "The Serjes 2000 Certificates -Prepayment Provisions' herein.
T he Series lOOO Certificates are also subject to mandatory tender for purchase in certain circumstances,
including conversion to a different Mode, all as more particularly described herein .
THE OBLIGATION OF THE DISTRICT TO PAY THE INSTALLMENT PAYMENTS, AND THE
INTEREST THEREON AND OTHER PAYMENTS REQUIRED TO BE MADE BY IT UNDER THE
INSTALLMENT PURCHASE AGREEMENT IS A SPEClAL OBLIGATION Of THE DISTRJCT PAYABLE, fN
THE MANNER PROVIDED IN THE INSTALLMENT PURCHASE AGREEMENT, SOLELY FROM NET
REVENUES AND OTHER FUNDS PROVIDED FOR IN THE INSTALLMENT PURCHASE AGREEMENT.
AND DOES NOT CONSTJTUTE A DEBT OF THE DlSTRICT OR OF THE STATE Of CALIFORNlA, OR OF
ANY POLITICAL SUBDIVISION THEREOF. IN CONTRAVENTION OF ANY CONSTlTUTIONAL OR
STATUTORY DEBT LIMITATJON OR RES1RJCTION. NEITHER THE FAJTH AND CREDIT NOR THE
TAXING POWER OF THE DISTRICT OR THE STATE OF CALIFORNIA, OR ANY POLITICAL
SLJBDIVISlON THEREOF, IS PLEDGED TO THE PAYMENT OF THE INSTALLMENT PAYMENTS. OR
THE INTEREST THEREON, OR OTHER PAYMENTS REQUIRED TO BE MADE PURSUANT TO Tl-IE INSTALLMENT PURCHASEAGREEl\1E'NT.
The cover page co ntains information for quick referenre only. It is not a summary of this issue. Potential eurchasers
must read the entire Official Statement to obtain information essential to making Rn informed investment decision.
The St:!ries 2000 Certificates are offered when, as and if delivered and received by the Underwriter, subJeCt to the approval of Orrick, Memngton & Sutcliffe, LLP. Los An14t:!les, Califomin. Special Counsel, and certain other condiuons. Certain legal matters will be passed upon for the Underwriter by its counsel, Hawkins. Delafield & Wood, Los Angeles, California. nnd fcyr
the DistricL by Woodruff, Spradlin nnd Sm.:i.rt. a Professional Corporation, Ornnge, California. 1l is anticipated that the Series
2000 Certificates in book-enu) form will be available for delivery to DTC in New Yor~ New York on or about , :woo.
Paine Webber Incorporated
Dared: ____ , 2000
3253v18
3253vl8
MAP OF THE DISTRICT
[TO COME]
ORANGE COUNTY
SANITATION DISTRICT, CALIFORNIA
Board of Directors
Jan Debay, [Chair] -Newport Beach
Peer A. Swan, [Vice Chair], Irvine Ranch
Charles E. Sylvia -Los Alamitos
Mark A. Murphy -Orange
Norman Z. Eckenrode -Placentia
Pat McGuigan -Santa Ana
Water District
Shirley McCracken -Anaheim
Lynn Daucher -Brea
Jack Mauller -Buena Park
Anna L. Piercy -Cypress
Guy Carrozzo -Fountain Valley
Don Bankhead -Fullerton
Mark Leyes -Garden Grove
Peter Green -Huntington Beach
Christina Shea -Irvine
Steve Anderson -La Habra
Paul Walker -La Palma
Shawn Boyd -Seal Beach
Brian Donahue -Stanton
Thomas R. Saltarelli -Tustin
Russell Patterson -Villa Park
[John M. Gullixson] -Yorba Linda
James M. Ferryman -Costa Mesa Sanitary District
Joy L. Neugebauer -Midway City Sanitary District
Jim Silva-Member of the Orange County Board of
Supervisors
Executive Management of the District
3253vl8
Blake P. Anderson, General Manager
Gary G. Streed, Director of Finance
David A. Ludwin, Director of Engineering
Robert P. Ghirelli, PhD., Director of Technical Services
Robert Ooten, Director of Operations & Maintenance
Patrick B. Miles, Director of Information Technology
Lisa M. Tomko, Director of Human Resources
Special Services
Special Counsel
Orrick, Herrington & Su tel iffe LLP
Los Angeles, California
District General Counsel
Thomas L. Woodruff, Esq.
Woodruff, Spradlin and Smart, a Professional Corporation
Orange, California
Trustee
[TO COME]
This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the Series 2000 Certificates by any person in any jurisdiction in which it is
unlawful for such person to make such an offer, solicitation or sale. The information set forth berein has
been provided by the District and other sources that are believed by the District to be reliable. The
UnderWriter has provided the following sentence for inclusion in this Official Statement. The Underwriter
has reviewed the information in this Official Statement in accordance with, and as part of, its
responsibilities to investors under the federal securities laws as applied to the facts and circumstances of
this transaction, but the Underwriter does not guarantee the accuracy or completeness of such
information.
No dealer, broker, salesperson or other person has been authorized to give any information or to
make any representations other than those contained in this Official Statement. If given or made, such
other information or representations must not be relied upon as having been authorized by the District,
the Corporation or the Underwriter.
This Official Statement is not to be construed as a contract with the purchasers of the Certificates.
Statements contained in this Official Statement which involve estimates, projections, forecasts or matters
of opinion, whether or not expressly so described herein, are intended solely as such and are not to be
construed as representations of facts.
The information and expressions of opinion herein are subject to change without notice and
neither delivery of th is Official Statement nor any sale made hereunder shall, under any circumstances,
create any implication that there has been no change in the affairs of the District or the Corporation since
the date hereof. This Official Statement is submitted with respect to the sale of the Series 2000
Certificates referred to herein and may not be reproduced or used, in whole or in part, for any other
purpose, unless authorized in writing by tbe District. All summaries of the documents and laws are made
subject to the provisions thereof and do not purport to be complete statements of any or all such
provisions. Preparation of this Official Statement and its distribution have been duly authorized and
approved by the District and the Corporation.
fn connection with the offering of the Series 2000 Certificates, the Underwriter may over-allot or
effect transactions which stabilize or maintain the market price of the Series 2000 Certificates at a level
above that which might otherwise prevail in the open market, Such stabilizing, if commen.ced, may be
discontinued at any time. The Underwriter may offer and sell the Series 2000 Certificates to certain
dealers, institutional investors and others at prices lower than the public offering prices stated on the
cover page hereof and such public offering prices may be changed from time to time by the Underwriter.
3253v18
TABLE OF CONTENTS
INTRODUCTION ................................ , ....................................................................................................................... 1
GENERAL .................................................................................................................................................................. l
THE DISTRICT ...................................•....•..•......... , ..................................................................................................... l
SECURITY AND SOURCES OF PAYMENT FOR THE SERJES 2000 CERTIFICAT~S ........................................................... 2
THE SERJES 2000 CERTIFICATES .............................................................................................................................. 3
BOOK-ENTRY SYSTEM .............................................................................................................................................. 3
ADDITIONAL OBLIGATIONS ...................................................................................................................................... 4
RESERVE FUND ......................................................................................................................................................... 4
lNTEREST RATE MODES ............................................................................................................................................ 4
OPTIONAL TENDER RIGHT ........................................................................................................................................ 4
REDEMPTION AND MANDATORY TENDER PROVISIONS ............................................................................................. 5
STANDBY CERTIFICATE PURCHASE AGREEMENT ...................................................................................................... 5
TAX MATTERS .......................................................................................................................................................... 5
MISCELLANEOUS ...................................................................................................................................................... S
PLAN OF REFUNDING .............................................................................................................................................. 6
THE SERIES 2000 CERTIFICATES ........................................................................................................................... 7
GENERAL ............................................................................... -................................................................................. 7
OPTIONAL TENDER PROVISIONS ............................................................................................................................... 8
MANDATORY TENDER PROVISIONS .......................................................................................................................... 9
TENDER AND PURCHASE OF SERJES2000 CERTIFICATES ........................................................................................ 11
CONVERSION TO OTHER MODES ................................................................................ -.......................... , ................ l l
PREPAYMENT PROVISIONS ...................................................................................................................................... 12
SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2000 CERTIFICATES ..................................... 14
INSTALLMENT PAYMENTS ...................................................................................................................................... 14
NET REVENUES ....................................................................................................................................................... 14
RATE STABILIZATION ACCOUNT ............................................................................................................................. 16
ALLOCATION OF REVENUES .................................................................................................................................... 16
RATE COVENANT .................................................................................................................................................... 17
RESERVE FUND .................................................. ., ................................................................................................... 17
LIMITATIONS ON ISSUANCE OF ADDITIONAL OBLIGATIONS .................................................................................... 17
INSURANCE ............................................................................................................................................................. 19
ALLOCATION OF INSTALLMENT PAYMENTS ................................................................................. , .......................... 20
STANDBY CERTIFICATE PURCHASE AGREEMENT ........................................................................................ 21
GENERAL PROVISIONS ............................................................................................................................................ 21
SUBSTITUTE LIQUIDITY FACILITY ........................................................................................................................... 22
LIMITATIONS OF STANDBY CERTIFICATE PURCHASE AGREEMENT ......................................................................... 22
THE BANK ................................................................................................................................................................ 23
THE DISTRICT ......................................................................................................................................................... 23
BACKGROUND ........................................................................................................................................................ 23
ORGANIZATION AND ADMINISTRATION .................................................................................................................. 24
SERVICES .............................................................. , ................................................................................................. 25
SERVICE AREA ........................................................................................................................................................ 25
EMPLOYEES ............................. , ............................................................................................................................. 26
3253v18
INSURANCE ......................................................................................... _ .................................................................. 27
EXISTING FACILITIES .............................................................................................................................................. 27
PERMITS, LICENSES AND OTHER REGULATIONS ..................................................................................................... 29
CAPITAL IMPROVEMENT PROGRAM ........................................................................................................................ 30
DISTRJCT REVENUES ............................................................................................................................................ 35
USER FEES ............................................................................................................................................................. 35
ADDITIONAL REVENUES ......................................................................................................................................... 37
WASTEWATER TREATMENT HISTORY ..................................................................................................................... 39
CUSTOMERS ............................................................................................................................................................ 39
ASSESSED V ALU A Tl ON ........................................................................................................................................... 40
TAX LEVIES AND DELINQUENCIES ..... , .................................................................................................................... 41
BUDGETARY PROCESS ............................................................................................................................................ 42
RESERVES ............................................................................................................................................................... 43
SUMMARY OF OPERATING DATA ............................................................................................................................ 43
PROJECTED OPERATINGDATA ................................................................................................................................ 44
MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATING DATA ..................................................................... 45
INVESTMENT OF DISTRICT FUNDS ........................................................................................................................... 46
FINANCIAL OBL!GA T!ONS ................................................................................................................................... 48
EXISTING INDEBTEDNESS ........................................................................................................................................ 48
ANTICIPATED FINANCfNGS ..................................................................................................................................... 49
DIRECT AND OVERLAPPING BONDED DEBT ............................................................................................................ 49
THE CORPORATION .............................................. , ................................................................................................ 50
LIMITATIONS ON TAXES AND REVENUES ....................................................................................................... 50
VERIFICATION OF ARITHMETICAL AND MATHEMATICAL COMPUTATIONS ......................................... 53
LEGAL MATTERS .................................................................................................................................................... 53
ABSENCE OF LITIGATION .................................................................................................................................... 53
FINANCIAL STATEMENTS .................................................................................................................................... 54
TAX MATTERS ........................................................................................................................................................ 54
RATINGS ................................................................................................................................................................... 55
UNDER WRITING ..................................................................................................................................................... 55
MISCELLANEOUS ................................................................................................................................................... 56
APPENDIX A-AUDITED COMBINED FINANCIAL STATEMENTS OF THE ORANGE COUNTY SANITATION
DISTRICT FOR FISCAL YEARS ENDING JUNE 30, 1999 AND 1998 ............................................ A-1
APPENDIX B-THE COUNTY OF ORANGE--ECONOMIC AND DEMOGRAPHIC INFORMATION .................... B-1
APPENDIX C-SUMMARY OF PRINCIPAL LEGAL OOCUMENTS ......................................................................... C-1
APPENDIX D· BOOK-ENTRY SYSTEM ......................................................................... -............................................ D-1
APPENDIX E-FORM OF APPROVING OPTNION OF SPECIAL COUNSEL ........................................................... E-l
ii
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OFFICIAL STATEMENT
$ _____ _
ORANGE COUNTY SANITATION DISTRICT
Refunding Certificates of Participation
(2000 Refunding Project)
INTRODUCTION
This introduction contains only a brief summary of certain of the terms of the Series 2000
Certificates being offered and a brief description of !he Official Statement. All statements contained in
this introduction are qualified in their entirety by reference to the entire Official Statement. References to,
and summaries oj; provisions of the Constitution and laws of the State of California (the "State'') and any
documents referred to herein do not purport lo be complete and such references are qualified in their
entirety by reference to the complete provisions. All capitalized terms used in this Official Statement and
not otherwise de.fined herein have the meanings set forth in the Trust Agreement. See Appendix C-
"Summary of Principal Legal Documents-Trust Agreement" herein.
Genera)
This Official Statement, including the cover page and all appendices hereto, provides certain
information concerning the sale and delivery of$ aggregate principal amount of the Orange
County Sanitation District Refunding Certificates of Participation (2000 Refunding Project) (the "Series
2000 Certificates") evidencing direct and proportionate interests in the right to receive Installment
Payments (the "Installment Payments") and the interest thereon, to be made by the Orange County
Sanitation District (the "District") pursuant to the Installment Purchase Agreement, dated as of
1, 2000 (the "Installment Purchase Agreement"), to be entered into by and between the
District and the Orange County Sanitation District Financing Corporation (the "Corporation"). The Series
2000 Certificates are to be executed and delivered pursuant to a Trust Agreement, dated as of
____ 1, 2000 (the "Trust Agreement"), among the District, the Corporation and [TRUSTEE], as
trustee (the "Trustee"). Proceeds from the sale of the Series 2000 Certificates will be used for the purpose
of current refunding the outstanding principal amount of the District's Certificates of Participation
(Capital Improvement Program, 1990-92 Series A) (the '' 1990 Series A Certificates") and the Certificates
of Participation (Capital Improvement Program, 1990-92 Series C) (the "1992 Series C Certificates") and
advance refunding a portion of the Certificates of Participation (Capital lmprovement Program, 1990-92
Series B) (the "199 I Series B Certificates"), all of which were executed and delivered to finance the
acquisition, construction and installation of certain improvements to the District's Wastewater System
(the "Wastewater System"), to finance a reserve fund for the Series 2000 Certificates and to pay costs of
issuance of tbe Series 2000 Certificates. See "Plan of Refunding" herein.
The District
The District is a public agency responsible for regional wastewater collection, treatment and
disposal. The Djstrict is the third largest wastewater discbarger west of the Mississippi River. The District
provides service to approximately 2.4 million people in the northern and central portion of the County of
Orange (the "County") treating 240 million gallons per day ("mgd") of wastewater.
The District's service area was originally formed in 1954 pursuant to the County Sanitation
District Act, as amended, being Section 4700 et seq. of the Health and Safety Code of the State. The
service area of the District originally consisted of seven independent special districts in the County which
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were responsible for matters relating to their individual districts. These special districts were jointly
responsible for the treatment and disposal facilities which they each used. Two additional districts were
formed and additional service areas were added in 1985 and 1986. fn April 1998, at the request of the
District's Board of Directors, the Board of Supervisors of Orange County (the 11Board") passed
Resolution No. 98-140 effective July I, ] 998 (the "Resolution'') approving the consolidation of the then
existing nine special districts into a new, siJ1gle sanitation district to be known as the Orange County
Sanitation District. This action was designed to simplify governance structures, reduce the size of the
District's Board of Directors, ease administrative processes, streamline decision-making and consolidate
accounting and auditing processes. Pursuant to the Resolution and Government Code Section 57500, the
predecessor special districts transferred and assigned all of their powers, rights, duties, obligations,
functions and properties to the District, including their obligations to repay the outstanding certificates of
participation. The boundaries of the nine predecessor special districts were initially used by the District to
delineate separate revenue areas (the "Revenue Areas'') for budgeting and accounting purposes and in
order to facilitate the imposition of fees and charges imposed by the District. See "The District," "District
Revenues" and "Financial Obligations'' herein.
Security and Sources of Payment for the Series 2000 Certificates
The Series 2000 Certificates are payable from Installment Payments paid by the District pursuant
to the Installment Purchase Agreement. The obligation of the District to pay tl1e Installment Payments
and the interest thereon and other payments required to be made by it under the Installment Purchase
Agreement is a special obligation of the District payable, in the manner provided under the Installment
Purchase Agreement, solely from Net Revenues, and other funds as provided in the Installment Purchase
Agreement consisting primarily of all income and revenue received by the District from the operation or
ownership of the Wastewater System remaining after payment of Maintenance and Operation Costs, as
further described in "Security and Sources of Payment for the Series 2000 Certificates" herein.
In December 1992, the predecessor special districts issued $160,600,000 aggregate principal
amoun t of variable rate certificates of participation (the "1992 Refunding Certificates") to advance refund
the remaining outstanding principal balance of the 1986 Certificates of Participation (the "1986
Certificates") and $38,350,000 of the outstand ing principal balance of the 1991 Series B Certificates of
Participation. In September 1993, the predecessor special districts issued $46,000,000 aggregate principal
amount of variable rate certificates of participation (the "1993 Refunding Certificates" and together with
the 1992 Refunding Certificates the "Outstanding Senior Obligations") which, together with other funds,
were used to advance refund $39,740,000 of the outstanding principal balance of the 1991 Series B
Certificates.
In connection with the issuance of the Outstanding Senior Obligations, the predecessor special
districts entered into two separate interest rate swap agreements whereby the special districts agreed to
pay the swap providers a fixed amount and the swap providers agreed to pay the special districts a
floating amount equal to the interest rates evidenced by the respective Outstanding Senior Obligations.
The District's obligation to make Installment Payments from Net Revenues is on a parity with the
District's obligation to make payments with respect to the Outstanding Senior Obligations and payments
with respect to the swap providers. The term "Senior Obligations" as used in this Official Statement
refers to the Series 2000 Certificates, the Outstanding Senior Obligations and any Additional Obligations
payable on a parity basis to the Installment Payments. Senior Obligations, together with any Additional
Obligations payable on a subordinate basis to the Installment Payments are referred to collectively as the
"Obligations." See "Financial Obligations -Existing lndebtedness'' herein.
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Pursuant to the Jnstallment Purchase Agreement, the District will, to the extent permitted by law,
fix, prescribe and collect fees and charges for the services and facilities of the Wastewater System which
will be at least sufficient to yield during each Fiscal Year (a) Net Revenues equal to 125% of Debt
Service on Senior Obligations for suth Fiscal Year and (b) Net Operating Revenues equal to 100% of
Debt Service on ~II Obligations for such Fiscal Year. The District may make adjustments from time to
time in such fees and charges and may make such c1assification thereof as it deems necessary, but sha11
not reduce the fees and charges then in effect unless the Revenues and Net Revenues from such reduced
fees and charges will at all times be sufficient to meet the requirements of the fnstallment Purchase
Agreement. See "Security and Source of Payment for tbe Series 2000 Certificates -Rate Covenant"
herein.
The obligation of the District to pay the Installment Payments and the interest thereon, and
other payments required to be made by it under the Installment Purchase Agreement is a special
obligation of the District payable, in the manner provided in the Installment Purchase Agreement,
solely from Net Revenues and other funds provided for in the Installment Purchase Agreement,
and does not constitute a debt of the District or of tbe State, or of any political subdivision tbereof,
in contravention of any constitutional or statutory debt limitation or i-estriction. Neither the faith
and credit nor the taxing power of the District or the State or any political subdivision thereof, is
pledged to the payment of the Installment Payments, or the interest thereon, or other payments
required to be made under the Installment Purchase Agreement. See "Security and Sources of
Payment for the Series 2000 Certificates" herein.
The Series 2000 Certificates
The Series 2000 Certificates will be prepared in the form of fully registered Series 2000
Certificates in Authorized Denominations. The Series 2000 Certificates will initially bear interest at the
Daily Rate Mode and while in a Daily Rate Mode or Weekly Rate Mode, will be delivered in the
denomination of $100,000 and whole multiples thereof, except that one Series 2000 Certificate may be in
the amount of $100,000 and a whole multiple of $5,000 in excess thereof. So long as the Series 2000
Certificates are in the OTC book-entry system, the interest, principal and prepayment prernjums, if any,
due with respect to the Series 2000 Certificates will be payable by the Trustee, or its agent, to OTC or its
nominee. OTC, in turn, will make payments pursuant to its procedures as described under Appendix D -
11Book-Entry System" herein.
Book-Entry System
The Series 2000 Certificates will be executed and delivered in book-entry fonn only and, when
delivered, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company,
New York, New York ("DTC"), which wm act as securities depository for the Series 2000 Certificates.
Indivjdual purchases of the Series 2000 Certificates will be made in book-entry form only. Purchasers of
the Series 2000 Certificates will not receive certificates representing their ownership interests in the
Series 2000 Certificates purchased. Principal and intetest payments on the Series 2000 Certificates are
payable directly to DTC by the Trustee. Upon receipt of payments of principal and interest, OTC wi II in
tum distribute such payments to the beneficial Owners of the Series 2000 Certificates. See "The Series
2000 Certificates-General'' and Appendix D-"Book-Entry System."
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Additional Obligations
In addition to the Series 2000 Certificates and the Outstanding Senior Obligations, the District
may at any time incur Additional Obligations payable on a parity or on a subordinate basis to the payment
by the. District of tl1e Installment Payments upon satisfaction of conditions provided in the lnstallment
Purchase Agreement. See "Security and Sources of Payment for the Series 2000 Certificates -
Limitations on Issuance of Additional Obligations" herein.
Reserve Fund
The Trust Agreement provides for the funding of the Reserve Fund in an amount equal to the
Reserve Requirement, which is defined as an amount equal to the least of (i) the maximum amount of
remaining Installment Payments, and the interest thereon, coming due in any one year; (ii)l 0% of the
proceeds of the Series 2000 Certificates; or (iii) 125% of the average amount of remaining Installment
Payments, and the interest theJeon, coming due in each year. Amounts in the Reserve Fund may be used
to pay prin cipal of and interest with respect to the Series 2000 Certificates to the extent that amounts in
the Principal Account and Jnterest Account are insufficient therefor. A portion of the proceeds of the
Series 2000 Certificates will be deposited into the Reserve Fund sufficient to satisfy the Reserve
Requirement as defined in the Trust Agreement. See Appendix C -"Summary of Principal Legal
Documents -Trust Agreement."
Interest Rate Modes
The Series 2000 Certificates will initially bear interest at the Daily Rate Mode. Upon satisfaction
of certain conditions provided in the Trust Agreement, the Series 2000 Certificates may be converted to
the Weekly Rate Mode, the Extended Rate Mode or the Fixed Rate Mode (each, a "Mode.") While in the
Daily Rate Mode or the Weekly Rate Mode, the Series 2000 Certificates will be executed and delivered
as fully registered certificates in denominations of $100,000 and integral multiples thereof, except that
one Series 2000 Certificate may be in the amount of $100,000 and a whole multiple of $5,000 in excess
thereof (each an "Authorized Denomination1'). Interest on the Series 2000 Certificates du:ring the Daily
Rate Mode and Weekly Rate Mode will be payable on the first Business Day of each calendar month
(each, an "Interest Payment Date"). See "The Series 2000 Certificates'' herein.
Optional Tender-Right
While the Daily Rate Mode is in effect, Owners of Series 2000 Certificates (other than Bank
Certificates) may elect to have their Series 2000 Certificates (or portions thereof in Authorized
Denominations) purchased at a purchase price equal to the principal amount thereof, without premium ,
plus any accrued but unpaid interest to the Purchase Date ("Purchase Price") on any Business Day upon
delivery of a written notice of tender meeting the requirements set forth in the Trust Agreement to the
Remarketing Agent and the Trustee not later than 9:45 a.m. (New York City time) on such Business Day.
While the Weekly Rate Mode is in effect, Owners of Series 2000 Certificates (other than Bank
Certificates) may elect to have their Series 2000 Certificates (or portions thereof in Authorized
Denominations) purchased at the Purchase Price on any Business Day upon delivery of a written notice
of tender meeting the requirements set forth in the Trust Agreement to the Remarketing Agent and the
Trustee not later than 5:00 p.m. (New York City time) on a Business Day not less than seven days prior to
the Purchase Date.
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Redemption and Mandatory Tender Provisions
The Seri es 2000 Certificates will be subject to mandatory sinkjng fond and optional prepayment
prior to maturity as more fully described herein. See "The Series 2000 Certificates -Prepayment
Provisions" herein. The Seri es 2000 Certificates are also subject to mandatory tender for purchase in
certain circumstances, including conversion to a different Mode, all as more pa11icularly described under
the caption ;'The Series 2000 Certificates -Mandatory Tender Provisions'' herein.
Standby Certificate Purchase Agreement
Subject to certain termination events, payment of d1e Purchase Price of the Series 2000
Certificates will be funded by the Standby Certificate Purchase Agreement, dated as of l,
2000 (the "Standby Certificate Purchase Agreement") to be entered into among the District, the Trustee
and (the "Bank"). The Standby Certificate Purchase Agreement is subject to termination
without notice to the Owners under certain circumstances defined to be a Termination Event.
"Termination Events" consist of [To Come]. [Upon termination of the Standby Cettificate Purchase
Agreement as a result of a Termination Event, (i) the obligation of the Bank under the Standby Certificate
Pw·chase Agreement to purchase Series 2000 Certificates shall terminate immediately without notice or
demand, (ii) the Bank shall be under no obligation to purchase the Series 2000 Certificates and (iii) the
Owners will not have the right to optionally tender the Series 2000 Certificates for purchase by the Bank.]
The risk of loss upon the occurrence of such events lies entirely with the Owner. See ''The Series 2000
Certificates -Optional Tender Provisions" herein. See also "Standby Certificate Purchase Agreemenf'
herein. The Standby Certificate Purchase Agreement relates only to the Series 2000 Certificates and will
not, under any circumstances, provide for the payment of principal and interest evidenced by, or the
Purchase Price of, Additional Obligations or Outstanding Senior Obligations.
Tax Matters
ln the opinion of Orrick, Herrington & Sutcliffe LLP, Special Counsel, based upon an analysis of
existing Jaws, regulations, rulings and court decisions, and assuming, among other matters, compliance
with certain covenants, interest evidenced by the Series 2000 Certificates is excluded from gross income
for federal income ta.x purposes under Section L 03 of the Internal Revenue Code of 1986 and is exempt
from State personal income taxes. In the further opinion of Special Counsel, interest evidenced by the
Series 2000 Certificates is not a specific preference item for purposes of the federal individual or
corporate alternative minim11m taxes, although Special Counsel observes that such interest is included in
adjusted current earnings in calculating corporate alternative minimum taxable income. Special Counsel
e-xpresses no opin ion regarding any other tax consequ ences related to the ownership or disposition of, or
the accrual or receipt of interest evidenced by, ilie Series 2000 Certificates. See "Tax Matters" and see
t he proposed form of opinion of Special Counsel set forth in Appendix E herein.
Miscellaneous
The Series 2000 Certificates will be offered when, as and if executed and delivered, and received
by the Underwriter, subject to the approval as to their legality by Special Counsel and cettain other
conditions. It is anticipated that the Series 2000 Certificates in definitive form will be available for
delivery to OTC on or about . 2000.
The Series 2000 Certificates are initially exempt from the rules of the Securities and Exchange
Commission relating to continuing disclosure of annual financial information and certain material events.
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The District's Comprehensive Annual Financial Reports are available upon request from Gary Streed,
Director of Finance, Orange County Sanitation District, 10844 Ellis Avenue, Fountain Valley, California
92708-7018.
The descriptions herein of the Trust Agreement, the Installment Purchase Agreement and any
other agreements relating to the Series 2000 Certificates are qualified in their entirety by reference to
such documents. Copies of the documents are on file and available for inspection at the corporate trust
office of the Trustee at . All capitalized terms used in this Official Statement and not otherwise
defined herein have the same meanings as in the Trust Agreement and the Installment Purchase
Agreement. See Appendix C -"Summary of Principal Legal Doc\Jments -Trust Agreement" for
definitions of certain words and terms used but not otherwise defined herein.
PLAN OF REFUNDING
To finance the acquisition, construction and 1nstaJlation costs of certain improvements to the
District's Wastewater System, the District caused the execution and delivery of its (i) Certificates of
Pa1ticipation (Capital Improvement Program, 1990-92 Series A) in the original principal amount of
$100,000,000 (the 0 1990 Series A Certificates"), of which $83,300,000 currently remains outstanding
(the "Refunded 1990 Series A Certificates"); (ii) Certificates of Participation (Capital Improvement
Program, 1990-92 Series C) in the original principal amount of $98,500,000 (the "1992 Series C
Certificates"), of which $86,200,000 currently remains outstanding (the "Refunded 1992 Series C
Certificates"); and (iii) Certificates of Participation (Capital Improvement Program, 1990-92 Series B) in
the original principal amount of $117 ,550,000 (the "1991 Series B Certificates"). 1991 Series B
Certificates in the principal amount of $86,255,000 were refunded in two series of certificates of
participation referred to as Outstanding Senior Obligations in this Official Statement. The District plans to
current refund the 1990 Series A Certificates and the 1992 Series C Certificates and to advance refund the
remaining $18,695,000 principal amount of 1991 Series B Certificates with a portion of the proceeds of
the Series 2000 Certificates. Such refunded portion of the 1991 Series B Certificates is referred to herein
as the "Refunded 1991 Series B Certificates" and, together with the Refunded l 992 Series A Certificates
and the Refunded 1992 Series C Certificates, are referred to as the "Refunded Certificates." See
"Financial Obligations -Existing Jndebtedness" herein for additional information regarding the
Outstanding Senior Obligations.
Upon delivery of the Series 2000 Certificates, a portion of the proceeds, together with certain
other amounts will be deposited in an escrow fund (the ''Escrow Fund") established under the Escrow
Agreement, dated as of l, 2000 (the "Escrow Agreement11), by and among the District, the
Corporation and [State Street Bank and Trust Company of California, N.A.,] [as escrow agent for the
Refunded Certificates] thereunder. Moneys in the Escrow Fund will be invested in direct general
obligations of, or obligations on which the payment of the principal of and interest are unconditionally
guaranteed by the United States of America, the interest on and principal of which will be sufficient to
pay the principal and interest evidenced by the Refunded 1991 Series B Certificates due to and including
August 1, 2001, to pay the prepayment price of the Refunded 1991 Series B Certificates on August I,
2001, to pay the principal and interest evidenced by the Refunded 1992 Series A Certificates and the
Refunded 1992 Series C Certificates due to and including and to pay the prepayment price of
the Refunded 1992 Series A Certificates and the Refunded 1992 Series C Certificates on . See
"Vetification of Atithmetical and Mathematical Computations" herein.
The table below sets fotth the estimated sources and uses of the proceeds of the Series 2000
Certificates.
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Estimated Sources and Uses of Proceeds of the Series 2000 Certificates
Sources
Certificate Proceeds
Existing Funds
Total Sources
Uses
Escrow Fund for Refunded Certificates
Reserve Fund
Costs ofissuance<1>
Total Uses
$
$ ======-
$
$ ======
<1) Costs of issuance include, among other things, fees of rating agencies, underwriter's discount, initial fees of the
Trustee and the Escrow Agent, initial foes for the Standby Certificate Purchase Agreement and Bond Counsel fees.
THE SERIES 2000 CERTIFICATES
General
The Series 2000 Certificates will be prepared in the form of fully registered Series 2000
Certificates in Authorized Denominations. The Series 2000 Certificates will initially bear interest at the
Daily Rate Mode and while in a Daily Rate Mode or Weekly Rate Mode, will be delivered in the
denomination of $100,000 and whole multiples thereof, except that one Series 2000 Certificate may be in
the amount of $100,000 and a whole multiple of $5,000 in excess thereof So long as the Series 2000
Certificates are in the DTC book-entry system, the interest, principal and prepayment premiums, if any,
due with respect to the Series 2000 Certificates will be payable by the Trustee, or its agent, to DTC or its
nominee. DTC, in turn, will make payments pursuant to its procedures as described under Appendix. D -
"Book-Entry System'' herein.
The Series 2000 Certificates wi ll be dated the date of initial delivery and will mature on
August 1, 20 l 9. During the Dai I y Rate Mode and Weekly Rate Mode, payment of interest with respect to
the Series 2000 Certificates will be payable on the first Business Day of each calendar month
commencing on August 1, 2000. While the Series 2000 Certificates are in the Daily Rate Mode or the
Weekly Rate Mode, interest evidenced by the Series 2000 Certificates will be computed on the basis of
the actual days elapsed and a 365 or 366-day year, as applicable. Upon satisfaction of the requirements
provided in the Trust Agreement, the Series 2000 Certificates may be converted to the Weekly Rate
Mode, Extended Rate Mode or the Fixed Rate Mode as provided in the Trust Agreement.
Notwithstanding the foregoing, the interest on Installment Payments evidenced by Bank Certificates shall
accrue at the Bank Certificate Rate, calculated as provided in the Trust Agreement. See Appendix C -
11Summary of Principal Legal Documents -Trust Agreement."
The Series 2000 Certificates will initially bear interest in the Daily Rate Mode until converted to
another Mode as provided in the Trust Agreement or until becoming Bank Certificates (at which time
they will evidence interest at the Bank Certificate Rate until such time as they are no longer Bank
Certificates),
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Daily Rate Periods will be for one day. Weekly Rate Periods will be from Wednesday of each
week to but excluding Wednesday of the following week, except that (i) in the case of a conversion of
the Series 2000 Certificates to a Weekly Rate Mode from an Extended Rate Mode, the initial Weekly
Rate Period upon such conversion shall be from the Conversion Date to but excluding Wednesday of the
foll0\¥ing week, (ii) in the case of a conversion of the Series 2000 Certificates from a Weekly Rate Mode
to an Extended Rate Mode, the last Weekly Rate Period will end on the Conversion Date, and (jii) in the
case the Weekly Rate Mode is in effect as of the stated Principal Payment Date for the Seri es 2000
Certificates, the last Weekly Rate Period will end on such stated Principal Payment Date.
The Remarketing Agent will detennine the Daily Rate for each Daily Rate Period that is a
Business Day not later than 9:45 a.m. (New York City time) on such Business Day. The Daily Rate for
any D ai ly Rate Period that is not a Business Day shall be the Daily Rate established for the immediately
preceding Business Day. The Remarketing Agent wi ll determine tl1e Weekly Rate for each Weekly Rate
Period not later than 4:00 p.m. (New York City time) on the last Business Day which is immediately prior
to the commencement date of the Weekly Rate Period to which such Weekly Rate relates. The Daily
Rate or Weekly Rate so determined will be the lowest rate of interest which, in the judgment of the
Remarketing Agent, would cause the Series 2000 Certificates to produce as nearly as practicable a bid
equal to the principal evidenced thereby, plus accrued interest evidenced thereby, under prevailing market
condit ions as of the date of determination of such Daily Rate or Weekly Rate. Notwithstanding the
foregoing, in no event will any Daily Rate or Weekly Rate exceed the Maximum Rate.
Notice of [Dai ly Rates] and Weekly Rates shall be given by the Remarketing Agent to the
Trustee by telephone (followed by notice in writing by an authorized officer of the Remarketing Agent)
not later than 5:00 p.m. on the date of determination. The Trustee shall inform the Owners of the Series
2000 Certificates and the Bank of each Daily Rate and Weekly Rate upon request.
All determinations of Daily Rates and Weekly Rates as provided in the Trnst Agreement will be
conclusive and binding upon the District, the Trustee, the Bank and the Owners of the Series 2000
Certificates. The District, the Trustee, the Bank and the Remarketing Agent will not be liable to the
Owner of any Series 2000 Certificate for failure to give any notice required above or for failure of the
Owner of any Series 2000 Certificate to receive any such notice.
Optional Tender Provisions
Optional Tenders While Daily Rate Mode in Effect. While the Daily Rate Mode is in effect,
Owners of Series 2000 Certificates (other than Bank Certificates) may elect to have their Series 2000
Certificates (or portions thereof in Authorized Denominations) purchased at the Purchase Price on any
Business Day upon delivery of a written notice of tender meeting the requirements set forth in the Trust
Agreement to the Remarketing Agent and the Trustee not later than 9:45 a.m. (New York City time) on
such Business Day. The determination of the Trustee as to whether a notice of tender has been properly
delivered in accordance with the Trust Agreement will be conclusive and binding upon the Owner.
Not later than 10:00 a.m. on the date of receipt of any such notice of tender, the Trustee
{Remarketi ng Agent] will notify the Bank of the principal evidenced by Series 2000 Certificates or
portions thereof to be tendered and remarketed and that such Series 2000 Certificates or portions thereof
are to be tendered and remarketed on such date. Such notice will be given by telephone, telegram,
telecopy, telex or other similar communication and will be promptly confirmed in writing.
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The Remarketing Agent will offer for sale and use its best efforts to find purchasers for all Series
2000 Certificates or portions thereof properly tendered. The terms of any sale by the Remarketing Agent
of tendered Series 2000 Certificates will provide for the purchase of the remarketed Series 2000
Certificates at the Purchase Price and the payment of such Purchase Price to the Trustee. by the
Remarketing Agent in immediately available funds against delivery of the remarketed Series 2000
Certificates to the Trustee at or before 11 ;30 a.m. on the Purchase Date. Notwithstanding the foregoing,
the Remarketing Agent will not offer for sale any Series 2000 Certificate if (i) notice of any optional or
mandatory prepayment or any conversion from the Daily Rate Mode to another Mode has been given to
the Owner of such Series 2000 Certificate pursuant to the provisions of the Trust Agreement, or (ii) any
defeasance of such Series 2000 Certificate in accordance with the provisions of the Trust Agreement has
occurred, unless the Remarketing Agent has advised the person in writing to whom the offer is made of
such occurrence and the effect of the same on the rights of the Owner of such Series 2000 Certificate,
including, but not limited to, the rights of such Owner to tender such Series 2000 Certificate, as described
in the conversion notice from the Trustee to the Owner of such Series 2000 Certificate.
Optional Tenders While Weekly Rate Mode in Effect. While the Weekly Rate Mode is in
effect, Owners of Series 2000 Certificates (other than Bank Certificates) may elect to have their Series
2000 Certificates (or portions thereof in Authorized Denominations) purchased at the Purchase Price on
any Business Day upon delivery of a written notice of tender meeting the requirements set forth in the
Trust Agreement to the Remarketing Agent and the Trustee not later than 5:00 p.m. (New York City
time) on a Business Day not less than seven days prior to the Purchase Date.
Not later than 4:30 p.m. on the Business Day immediately fo llowing the date of receipt of any
notice of tender, the Trustee [Remarketing Agent] will notify the Bank of the principal evidenced by
Series 2000 Certificates or portions thereof to be tendered and remarketed and the date on which such
Series 2000 Certificates or portions thereof are to be tendered and remarketed. Such notice will be given
by telephone, telegram, telecopy, telex or other similar communication and will be promptly confirmed in
writing.
The Remarketing Agent will offer for sale and use its best efforts to find purchasers for all Series
2000 Certificates or portions thereof properly tendered. The terms of any sale by the Remarketing Agent
of tendered Series 2000 Certificates will provide for the purchase of the remarketed Series 2000
Certificates at the Purchase Price and the payment of such Purchase Price to the Trustee by the
Remarketing Agent in immediately available funds against delivery of the remarketed Series 2000
Certificates to the Trustee at or before l l :30 a.m. 011 the Purchase Date. Notwithstanding the foregoing,
the Remarketing Agent will not offer for sale any Series 2000 Certificate if (i) notice of any optional or
mandatory prepayment or any conversion from the Weekly Rate Mode to another Mode has been given
to the Owner of such Series 2000 Certificate pursuant to the provisions of the Trust Agreement, or
(ii) any defeasance of such Series 2000 Certificate in accordance with the provisions of the Trust
Agreement has occurred, unless the Remarketing Agent has advised the person in writing to whom the
offer is made of such occurrence and the effect of the same on the rights of the Owner of such Series
2000 Certificate, including, but not limited to, the rights of such Owner to tender such Series 2000
Certificate, as described in the conversion notice from the Trustee to the Owner of such Series 2000
Certificate,
Mandatory Tender Provisions
On Conversion Dates. The Series 2000 Certificates will be subject to mandatory tender for
purchase on each Conversion Date, and the Owners shall not be entitled to retain such Series 2000
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Certificates. Notice of conversion to another Mode will be given to the Owners in the manner provided
with respect to optional conversion between Variable Rate Modes in the Trust Agreement. Notice of
conversion to the Ftxed Rate Mode will be given to the Owners in the manner provided with respect to
conversion to the Fixed Rate Mode therein. The provisions with respect to purchase of tendered Series
2000 Certificates therein will be applicable to the purchase, payment for and registration and delivery of
tendered Series 2000 Certificates. Any Series 2000 Certificate not tendered for purchase on a Conversion
Date, as required in the Trust Agreement will be deemed tendered and purchased on such Conversion
Date, and thereafter the Owner thereof wil I have no further rights under the Trust Agreement except to
receive such Purchase Price.
After Each Extended Rate Period, The Series 2000 Certificates will be subject to mandatory
tender for purchase on the day following the last day of each Extended Rate Period, and the Owners will
not be entitled to retain such Series 2000 Certificates. The Trustee will, not less than l 0 days prior to
each such mandatory tender date, mail by first class mail, postage prepaid, a notice to all of the Owners of
the Series 2000 Certificates, which notice will set forth rnandatory tender date and state (i) that the Series
2000 Certificates are subject to mandatory tender for purchase (without the right to retain) on such
mandatory tender date at a Purchase Price equal to the principal evidenced thereby plus accrued interest
evidenced thereby, (ii) that the Series 2000 Certificates will be deemed pl1rchased on such mandatory
tender date, and thereafter the Owner will have no further rights under the Trust Agreement except to
receive such Purchase Price, and (iii) that on and after the last Business Day that is at least four days prior
to such mandatory tender date, the Trustee, upon request of an Owner, will inform such Owner of the
duration of the Extended Period commencing on such mandatory tender date and the Extended Rate
relating thereto. The provisions of the Trust Agreement wi ll be applicable to the purchase, payment for
and registration a11d delivery of the Certificates. Any Series 2000 Certificate not tendered for purchase
on such a mandatory tender date, as required by the Trust Agreement, will be deemed tendered and
purchased on such mandatory tender date, and thereafter the Owner thereof will have no further rights
under the Trust Agreement except to receive such Purchase Price.
Upon Expiration or Substitution of Liquidity Facility or Event of Default with Respect Thereto.
Prior to conversion of the Series 2000 Certificates to the Fixed Rate Mode, the Series 2000 Certificates
shall be subject to mandatory tender for purchase at the Purchase Price:
(i)
Liquidity Facility;
on the last Business Day which is at least five days prior to expiration of the
(ii) on the fifth Business Day following the Trustee's receipt of a Notice of
Mandatory Tender from the Bank; and
(iii) if the Series 2000 Certificates are in the Daily Rate Mode or the Weekly Rate
Mode, on tJ1e last Business Day which is at least five days prior to the substitution o f a Substitute
Liquidity Facility for the Standby Certificate Purchase Agreement pursuant to the provisions of the Trust
Agreement.
The Owners may not elect to retain their Series 2000 Certificates in the event of mandatory
tender upon expiration or substitution of liquidity facility or event of default, as described above.
Notice of Mandatory Purchase. Notice of mandatory tender of the Series 2000 Certificates,
stating the date on whfoh and time at whi ch the Series 2000 Certificates are required to be tendered for
purchase, will be given by first class mail, postage prepaid by the Trustee to the Owners of the Series
10
3253v l8
2000 Certificates not less than five Business Days prior to the date on which the Series 2000 Certificates
are to be purchased pursuant to the Trust Agreement or as soon as practicable after the Trustee's receipt
of a Notice of Mandatory Tender from the Bank, with respect to a purchase pursuant to paragraph (ii)
above. A copy of such notice will be sent to the District, the Remarketing Agent and the Bank. Notice
having been so given, such mandatory tender will occur on the date provided in such notice whether or
not a Substitute Liquidity Facility is provided after such initial notice has been given.
Tende1· and Purchase of Series 2000 Certificates
Before 4:00 p.m. on the Purchase Date and upon receipt by the Trustee of 100% of the aggregate
Purchase Price of the tendered Series 2000 Certificates, the Trustee will pay the Purchase Price of such
Series 2000 Certificates to the Owners thereof at its Principal Office or by bank wire transfer. Such
payments will be made in immediately avail able funds. Payments of such Purchase Price are to be made
from the following sources In tbe order of priority iodicated:
(i) the proceeds of the sale of the Series 2000 Certificates which have been
remarketed by the Remarketing Agent; and
(ii) moneys paid pursuant to draws on the Standby Ce11ificate Purchase Agreement
to pay the Purchase Price of Series 2000 Certificates.
The Remarketing Agent will offer for sale and use its best efforts to find purchasers for all Series
2000 Certificates or portions thereof properly tendered. The tenns of any sale by the Remarketing Agent
of tendered Series 2000 Certificates will provide for the purchase of the remarketed Series 2000
Certificates at the Purchase Price and the payment of such Purchase Price to the Trustee by the
Remarketing Agent in immediately available funds against de livery of the remarketed Series 2000
Certificates to the Trustee at or before 11:30 a.m. on the Purchase Date. Notwithstanding the foregoin g,
the Rernarketing Agent will not offer for sale any Series 2000 Certificate if (i) notice ofany optional or
mandatory prepayment or any conversion from the Weekly Rate Mode to another Mode has been given
to the Owner of such Series 2000 Certificate pursuant to the provisions of the Trust Agreement, or
(ii) any defeasance of such Series 2000 Certificate in accordance with the provisions of the Trust
Agreement has occurre~ unless the Retnarketing Agent has advised the person in writing to whom the
offer is made of such occurrence and the effect of the same on the rights of the Owner of such Series
2000 Certificate, -including, but not limited to, the rights of such Owner to tender such Series 2000
Certificate, as described in the conversion notice from the Trustee to the Owner of such Series 2000
Certificate.
Conversion to Other Modes
Optional Conversion Between Variable Rate Modes. At the option of the District and upon
del ivery of an Opin ion of Counsel to the effect that such conversion will not, in and of itself, adversely
affect the exclusion from gross income of interest evidenced by the Series 2000 Certificates for federal
income tax purposes, all of the Series 2000 Certificates may be converted from the then current Variable
Rate Mode to another Variable Rate Mode as provided in the Trust Agreement. In the case of conversion
from the Daily Rate Mode to another Variable Rate Mode, the Conversion Date shall be an Interest
Payment Date for the Daily Rate Mode. In the case of conversion from the Weekly Rate Mode to another
Variable Rate Mode, the Conversion Date shall be an interest Payment Date for the Weekly Rate Mode.
In the case of a conversion from the Extended Rate Mode to another Variable Rate Mode, the Conversion
Date will be the day fo!Jowing the last day of the Extended Rate Period. Notwithstanding the delivery of
11
3253vl8
notice of the conversion pursuant to the Trust Agreement, conversion to a new Variable Rate Mode will
not take effect unless all of the conditions provided in the Trust Agreement are satisfied.
Conversion to the Fixed Rate Mode. All of the Series 2000 Certificates may be converted from
the then current Variable Rate Mode to the Fixed Rate Mode at the option of the District as provided in
the Trust Agreement. The Conversion Date for any conversion of Series 2000 Certificates to the Fixed
Rate Mode will be, if the conversion is from the Daily Rate Mode or the Weekly Rate Mode, the first
Business Day of a calendar month, and, if the conversion is from the Ex.tended Rate Mode, the day
fol lowing the last day of an Extended Rate Period. Notwithstanding the delivery of notice of the
conversion pursuant to the Trust Agreement, conversion to the Fixed Rate Mode will not take effect
unless all of the conditions provided in the Trust Agreement are satisfied.
Prepayment Provisions
Optional Prepayment. While the Daily Rate Mode or the Weekly Rate Mode is in effect, the
Series 2000 Certificates will be subject to prepayment prior to their stated Principal Payment Date, on
any Interest Payment Date, at the option of the District, as a whole or in part in Authorized
Denominations, from and to the extent of prepaid Installment Payments paid pursuant to the Installment
Purchase Agreement, at a prepayment price equal to the principal evidenced thereby, plus accrued
interest evidenced thereby to the date fixed for prepayment, without premium.
Mandatory Sinking Fund Account Prepayment. The Series 2000 Certificates are subject to
repayment prior to their stated Principal Payment Date, in part, from Mandatory Sinking Account
Payments, on each August l specified below, at a prepayment price equal to the principal evjdenced
thereby, pills accrued interest evidenced thereby to the date fixed for prepayment, without premium. The
principal evidenced by such Series 2000 Certificates to be so prepaid and the dates therefor will be as
follows:
Mandatory Mandatory
Date Sinking Fund Date Sinking Fund
(Augus1 1) Amount (August l) Amount
2000 $ 2009 $
2001 201 0
2002 2011
2003 2012
2004 2013
2005 2014
2006 2015
2007 2016
2008 2017
2018
2019*
*Stated Maturity Date.
The amount of each such prepayment will be reduced as directed by the District, to the extent
possible, in Authorized Denominations, in the event and to the extent of any and all prepayments of
Series 2000 Certificates, other than prepayments made as described in the preceding paragraph.
12
3253v l8
Selection of Series 2000 Certificates for Prepayment. Whenever Jess than all the Outstanding
Series 2000 Certificates are to be prepaid on any one date, the Trustee shall select the Series 2000
Certificates to be prepaid by lot jn any manner that the Trustee deems frur and appropriate, which
decision shall be final and binding upon the District, the Corporation and the Owners. Notwithstanding
the foregoing, all Bank Certificates shall be prepaid prior to the prepayment of any other Series 2000
Certificates. The Trustee will promptly notify the District in writing of the numbers of the Series 2000
Certjficates so selected for prepayment on such date. For purposes of such selection, any Series 2000
Certificate may be prepaid in part in Authorized Denominations.
Notice of Prepayment. When prepayment of Series 2000 Ce1tificates is authorized pursuant to
the Trust Agreement, the Trustee will give notice, at the expense of the District, of the prepayment of the
Series 2000 Certificates. The notice of prepayment will specify the Series 2000 Certificates or designated
portions thereof (in the case of prepayment of the Series 2000 Certificates in part but not in whole) which
are to be prepaid, the date of prepayment, the place or places where the prepayment wi ll be made,
including the name and address of any paying agent, the prepayment price, the CUSlP numbers assigned
to the Series 2000 Certificates to be prepaid, and the numbers of the Series 2000 Certificates to be
prepaid in whole or in part and, in the case of any Series 2000 Certificate to be prepaid in part only, the
principal evidenced by such Series 2000 Certificates to be prepaid. Such notice of prepayment will
further state that on the specified date there shall become due and payable upon each Series 2000
Certificate or portion thereof being prepaid the prepayment price and that from and after such date
interest evidenced thereby will cease to accrue and be payable.
The actual receipt by an Owner or by any of the securities depositories or information services
specified in the Trust Agreement of any notice of such prepayment shall not be a condition precedent to
prepayment, and neither failure to receive such notice nor any defect therein shall affect the validity of
the proceedings for the prepayment of such Series 2000 Certificates or the cessation of interest evidenced
thereby on the date fixed for prepayment.
A certificate by the Trustee that notice of prepayment has been given to Owners or to any of the
securities depositories or information services specified in tJ1e Trust Agreement as provided therein shall
be conclusive as against all parties, and no Owner whose Series 2000 Certificate is called for prepayment
may object thereto or object to the cessation of interest evidenced thereby on the fixed prepayment date
by any claim or showing that said Owner failed to actually receive such notice of prepayment.
If notice of prepayment has been duly given as aforesaid and funds for the payment of the
prepayment price of the Series 2000 Cerfrficates to be prepaid are held by the Trustee, then on the
Prepayment Date designated in such notice, the Series 2000 Certificates so called for prepayment will
become payable at the prepayment price specified in such notice; and from and after the date so
designated interest evidenced by the Series 2000 Certificates so called for prepayment will cease to
accrue, such Series 2000 Certificates will cease to be entitled to any benefit or security under the Trust
Agreement and the Owners of such Series 2000 Certificates wiJJ have no rights in respect thereof except
to receive payment of the prepayment price; and such moneys will be pledged to such prepayment, The
Trustee wil I, upon suttendet fot payment of any of the Seti es 2000 Certificates to be prepaid, pay such
Series 2000 Certificates at the prepayment price thereof.
13
3253v18
SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2000 CERTIFICATES
IostaJlmeot Payments
Pursuant to the Installment Purchase Agreement, the acquisition, construction and installation of
certain improvements to the District's Wastewater System (the "Project") will be acqufred by the District
from the Corporation. The District has covenanted to, subject to any rights of prepayment under the
[nstallment Purchase Agreement, pay to the Corporation, solely from Net Revenues and from no other
sources, the Purchase Price in Tnstallment Payments, with interest thereon as provided in the Installment
Purchase Agreement. The obligation of the District to make the ltlstallment Payments, and payments of
interest thereon, and other payments required to be made by it under the Installment Purchase Agreement,
solely from Net Revenues, is absolute and unconditional, and until such time as the Installment Payments,
payments of interest thereon, and such other payments shall have been paid in full (or provision for the
payment thereof shall have been made pursuant to the Installment Purchase Agreement), the District has
covenanted that it will not discontinue or suspend any Installment Payments when due, whether or not the
Project or any part thereof is operating or operable or has been completed, or its use is suspended,
interfered with, reduced or curtailed or terminated in whole or in part, and such Installment Payments,
payments of interest thereon, and other payments shalJ not be subject to reduction whether offset or
otherwise and shall not be conditional upon the performance or nonperformance by any party of any
agreement or any cause whatsoever. The District's obligation to make lnstallment Payments from Net
Revenues is on a parity with the District's obligation to make payments with respect to its Outstanding
Senior Obligations. See"-Net Revenues1' below. Pursuant to the Trust Agreement, the Corporation has
assigned to the Trustee for the benefit of the Owners of tbe Series 2000 Certificates substantially all of its
rights, title and interest in the Installment Purchase Agreement, including its right to receive Installment
Payments and the interest thereon.
The obligation of the District to pay the Insta llment Payments, and the interest thereon, and other
payments required to be made by it under the Installment Purchase Agreement, is a special obligation of
the District payable, in the manner provided in the Installment Purchase Agreement, solely from Net
Revenues and other funds provided for in the Installment Purchase Agreement, and does not constitute a
debt of the District, the State or of any political subdivision thereof, in contravention of any co nstitutional
or statutory debt limitation or restriction. Neither the faith and credit nor the taxing power of the District,
the State or any po litical subdivision thereof, is pledged to the payment of the Installment Payments, or
the interest thereon, or other payments required to be made under the InstalhneJlt Purchase Agreement.
See "Security and Sources of Payment for the Series 2000 Certificates" herein.
Net Revenues
The District is obligated to make Installment Payments solely from Net Revenues, which consist
of Revenues remaining after payment of costs paid by the District for maintaining and operating the
Wastewater System ("Maintenance and Operation Costs11). Reveuues are defined in the Installment
Purchase Agreement to mean, for any period, all income and revenue received by the District during such
period from the operation or ownership of the Wastewater System, determined 'in accordance with
generally accepted accounting principles, including all fees and charges received by the District during
such period for the services of the Wastewater System , investment incorne received during such period
(but only to the extent that such investment income is generall y available to pay costs with respect to the
Wastewater System, including Maintenance and Operation Costs), Net Proceeds of business interruption
insurance received during such period, Ad Valorem Taxes received during such period, payments under
the Agreement Acquiring Ownership Interests, Assigning Rights and Establishing Obligations, entered
14
3253v18
into on February 13, 1986, and amendment No. l thereto dated December 10, 1986, by and between
predecessor County Sanitation District No. 14 of Orange County and the Irvine Ranch Water District (the
"IR WD Agreement") received during such period and all other money received during such period
howsoever derived by the District from the operation or ownership of the Wastewater System (including
any standby or availability charges), but excluding (a) capital facilities capacity charges, (b) payments
received under Financial Contracts, and (c) refU11dable deposits made to establish credit and advances or
contributions in aid of construction (which, for purposes hereof, shall not include payments under the
TRWD Agreement); provided, however, that (i) Revenues shall be increased by the amounts, if any,
transferred during such period from the. Rate Stabilization Account to the Revenue Account and shall be
decreased by the amounts, if any, transferred during such period from the Revenue Account to the Rate
Stabilization Account, and [(ii) Revenues shall include capital facilities capacity charges collected during
such period to the extent that such capital facilities capacity charges could be properly expended on a
Connection Fee Eligible Project for which the proceeds of Subject Obligations were used or are available
to be used.] See "District Revenues -Additional Revenues0 herein.
The District's obligation to make the Installment Payments from its Net Revenues is on a parity
with the District's obligation to make payments with respect to its other outstanding obligations described
as Senior Obligations and all Reimbursement Obligations with respect to Senior Obligations. Pursuant to
the Installment Purchase Agreement, the District pledges all Net Revenues to the payment of the Senior
Obligations and Reimbursement Obligations with respect to Senior Obligations, and the Net Revenues
will not be used for any other purpose while any of the Senior Obligations or Reimbursement Obligations
with respect to Senior Obligations remain unpaid; provided, however, that out of the Net Revenues there
may be apportioned such sums for sueh purposes as are expressly permitted by the Installment Purchase
Agreement. This pledge shall constitute a first lien on the Net Revenues for the payment of the Senior
Obligations and Reimbursement Obligations with respect to Senior Obligations. The term Senior
Obligations, generally means all revenue bonds or notes (including bond anticipation notes and
commercial paper) of the District authorized, executed, issued and delivered under and pursuant to
applicable law, the Installment Purchase Agreement and all other contracts (including financial contracts)
or leases of the District authorized and executed by the District under and pursuant to applicable law, the
installment, lease or other payments under which are, in accordance with the provisions of the Installment
Purchase Agreement, payable from Net Revenues on a parity with the payments under the Installment
Purchase Agreement.
The District may at any time incur Subordinate Obligations; provided, however, that prior to
incurring such Subordinate Obligations, the District will have determined that the incurrence thereof will
not materially adversely affect the District's ability to comply with the requirements of the Installment
Purchase Agreement. The District may at any time incur Reimbursement Obligations with respect to
Subordinate Obligations. For a description of the District's Outstanding Senior Obligations and
Subordinate Obligations, see "Financial Obligations -Existing Indebtedness" herein.
The District 1uay, in connection with the incurrence of Subordinate Obligations, pledge Net
Revenues to the payment of Subordinate Obligations and Reimbursement Obligations with respect to
Subordinate Obligations; provided, however, that such pledge, and any lien created thereby, shall be
junior and subordinate to the pledge of, and lien on, Net Revenues for the payment of Senior Obligations
and Reimbursement Obligations with respect to Senior Obligations.
15
3253v18
Rate Stabilization Account
In order to avoid fluctuations in its fees and charges of the Wastewater System, from time to time
the D istrict may deposit in the Rate Stabilization Account from Net Revenues such amounts as the
District deems necessary or appropriate. From time to time, the District may also transfer moneys from
the Rate Stabilization Account to the Revenue Account to be used by the District, first to pay all
Maintenance and Operations Costs as and when the same shall be due and payable. In addition, any Sl.lch
amount transferred from the Rate Stabilization Account to the Revenue Account by the District is
included as Revenues for any period, but such transfetTed amount is excluded from determining
Operating Revenues for any period. Revenues will be decreased by the amounts, if any, transferred from
the Revenue Account to the Rate Stabilization Account. There are presently no funds in the Rate
Stabilization Account.
Allocation of Revenues
In order to carry out and effectuate the pledge of Net Revenues as described above, the District
agrees and covenants that all Operating Revenues received by the District will be deposited when and as
received in the Revenue Account. Additionally, amounts may, from time to time as the District deems
necessary or appropriate, be transferred from the Rate Stabilization Account and deposited in the
Revenue Account, as described above under"-Rate Stabilization Account." The District will pay from
the Revenue Account all Maintenance and Operations Costs (including amounts reasonably required to
be set aside in contingency reserves for Maintenance and Operations Costs, the payment of which is not
immediately required) as and when the same shall be due and payable.
After having paid, or having made provisions for the payment of, Maintenance and Operations
Costs, the District shall set aside and deposit or transfer, as the case may be, from the Revenue Account
such amounts at such times as provided in the installment Purchase Agreement in the following order of
priority:
(I) Senior Obligation Payment Account;
(2) Senior Obligation Reserve funds.;
(3) Subordinate Obligation Payment Account;
(4) Subordinate Obligation Reserve Funds; and
(5) Rate Stabilization Account.
Amounts required or permitted to be deposited or transferred as described in items 2, 3, 4 and 5
above, shall not be so deposited or transferred unless the District shall have determined that there will be
sufficient Net Revenues available to make the required deposits or transfers on the dates on which such
deposits or transfers are required to be made as described above. So long as the District has determined
that Net Revenues will be sufficient to make all of the deposits or transfers required to be made pursuant
to paragraphs l , 2, 3, 4 and S above, on the dates on which such deposits or transfers are required to be
made, Net Revenues on deposit in the Revenue Account may from time to time be used for any purpose
for which the District funds may be legally applied. For additional information, see Appendix C -
"Summary of Principal Legal Documents -Installment Purchase Agreement.11
16
3253vl8
Rate Covenant
Pursuant to the Installment Purchase Agreement, the Distrjct will, to the extent permitted by law,
fix, prescribe and collect fees and charges fot the services of the Wastewater System which will be at
least sufficient to yield during each Fiscal Year (a) Net Revenues equal to 125% of Debt Service on
Senior Obligations for such Fiscal Year and (b) Net Operating Revenues equal to 100% of Debt Service
on all Obligations for such Fiscal Year. The District may make adjustments from time to time in such fees
and charges and may make such classification thereof as it deems necessary, but will not reduce the fees
and charges then in effect unless the Revenues and Net Revenues from such reduced fees and charges
will at all t imes be sufficient to meet the requirements of the Installment Purchase Agreement.
In addition, the District has covenanted in the Justa! lment Purchase Agreement to prepare and
adopt an annual budget for the Wastewater System for each Fiscal Year. Such budget will set forth in
reasonable detail the Revenues anticipated to be derived in such Fiscal Year and the expenditures
anticipated to be paid or provided for therefrom in such Fiscal Year, including, without limitation, the
amounts required to pay or provide for the payment of the Maintenance and Operations Costs during such
Fiscal Year, the amounts required to pay or provide for the payment of Obligations during such Fiscal
Year and tbe amounts required to pay or provide for the payment of all other claims or obligations
required to be paid from Revenues in such Fiscal Year, and will show that Revenues and Net Revenues
will be at least sufficient to satisfy the requirements of the Installment Purchase Agreement. On or before
September 1 of each Fiscal Year, commencing September 1, 2000, the District will file with the Trustee,
as assignee of the Corporation, a copy of the adopted budget for such FiscaJ Year. See Appendix C -
"Summary of Principal Legal Documents -Installment Purchase Agreement" for additional information.
Reserve Fund
The Trust Agreement provides for the funding of the Reserve Fund in an amount equal to the
Reserve Requirement, which js defined as an amount equal to the least of (i) the maximum amount of
remaining Installment Payments, and the interest thereon, coming due in any one year; (ii) l 0% of the
proceeds of the (2000 Certificates]; or (iii) 125% of the average amount of remaining Installment
Payments, and the interest thereon, corning due in each year. Amounts in the Reserve Fund may be used
to pay principal of and interest with respect to the Series 2000 Certificates to the extent that amounts in
the Principal Account and Interest Accouni are insufficient therefor. A portion of the proceeds of the
Series 2000 Certificates will be deposited into the Reserve Fund sufficient to satisfy the Reserve
Requirement as defined in the Trust Agreement. See Appendix C -"Summary of Principal Legal
Documents -Trust Agreement."
Limitations on Issuance of Additional Obligations
Senior Obligations. The District may at any time incur Senior Obligations payable from Net
Revenues as provided in the rnstallment Purchase Agreement on a parity with all other Senior Obligations
theretofore incuned but only subject to the following conditions under the Installment Purchase
Agreement:
3253v18
(I) Upon the incurrence of such Senior Obligations, no Event of Default shall be continuing
under the terms of the Installment Purchase Agreement or the Trust Agreement; and
(2) Such Senior Obligations shall be incurred only for the purpose of (i) providing funds to
pay costs of additions, improvements or repairs to, or replacements of portions of, the
17
Wastewater System, or (ii) provjding funds to refund or refinance any Obligations;
provided, however, tbat a portion of the proceeds of such Senior Obligations. may be used
to pay costs of issuance incurred in connection with the incurrence of such Senior
Obligations and a portion of the proceeds of such Senior Obligations may be used to fund
an Obligatio11 Reserve Fund in the amount required to be funded for such Senior
Obligations and to pay capitalized interest on such Senior Obligations.
(3) The District shall have received either one of the following:
(i) A written Certificate of the District certifying that, for a 12 consecutive calendar
month period during the 24 consecutive calendar month period ending in the
calendar month prior to the incurrence of such Senior Obligations (which 12
consecutive calendar month period shall be specified in such certificate or
certificates);
(A) Net Revenues, as shown by the books of the District, shall have
amounted to at least 125% of Maximum Annual Debt Service on
all Senior Obligations to be outstanding immediately after the
incurrence of such Senior Obligations, and
(B) Net Operating Revenues, as shown by the books of the District,
shall have amounted to at least 100% of Maximum Annual Debt
Service on all Obligations to be outstanding immediately after
the incurrence of such Senior Obligations.
For purposes of demonstrating compliance with the foregoing, Net Revenues and Net
Operating Revenues may be adjusted for (x) any changes in fees and charges for the services of
the Wastewater System which have been adopted and are in effect on the date such Senior
Obligations are incurred, but which, during all or any part of such 12 consecutive calendar month
period, were not in effect, (y) customers added to the Wastewater System subsequent to such 12
consecutive calendar month period but prior to the date such Sen ior Obli gations are incurred, and
(z) the estimated change in available Net Revenues and Net Operating Revenues which will result
from the connection of existing residences or businesses to the Wastewater System within one
year following completion of any project to be funded or any system to be acquired from the
proceeds of such Senior Obligations; or
3253vl8
(ii) A certificate or certificates from one or more Consultants whicb1 when taken
together, project that, for each of the two Fiscal Years next succeeding the
incurrence of such Senior Obligations;
(A) Net Revenues will amount to at least 125% of Maximum Annual
Debt Service on all Senior Obligations to be outstanding
immediately after the incurrence of such Senior Obligations, and
(B) Net Operating Revenues will amount to at least 100% of Maximum
Annual Debt Service on all Obligations to be outstanding
in1mediately after the incurrence of such Senior Obi igations.
18
Por purposes of demonstrating compliance with the foregoing, Net Revenues and Net
Operating Revenues may be adjusted for (x) any changes in fees and charges for the services of
the Wastewater System wbich have been adopted and are in effect on the date such Senior
Obligations are incurred or will go into effect prior to the end of such two Fiscal Year period, (y)
customers expected to be added to the Wastewater System prior to the end of such two Fiscal
Year period, and (z) the estimated change in available Net Revenues and Net Operating
Revenues which will result from the connection of existing residences or businesses to the
Wastewater System within one year following completion of any project to be funded or any
system to be acquired from the proceeds of such Senior Obligations. For purposes of preparing
the certificate or certificates described above, the Consultant may rely upon financial statements
prepared by the District that have not been subject to audit by an independent certified public
accountant if audited financial statements for the period are not available.
The provisions described above i11 paragraph (3) need not be complied with if the Senior
Obligations being incmTed are Short-Term Obligations excluded from the calculation of Assumed Debt
Service pursuant to clause (H) of the definition thereof. See Appendix C -"Summary of Legal
Documents -Definitions" herein.
The determination of Net Revenues for use in the calculation described above is more fully
described in Appendix C-"Summary of Principal Legal Documents -Installment Purchase Agreement -
[Additional Obligations]" attached hereto. The provisions described in paragraph (3)(i)(B) above need
not be complied with for such portion of such Seniol' Obligations incurred for the purpose of providing
funds to refund or refinance such Obligations if (i) a portion (which may be all) of the Senior Obligations
are incurred for the purpose of providing fun ds to refund or refinance any Obligations, (ii) upon such
refunding or refinancing, debt service on such refunded or refinanced Obligations, or debt service on
bonds, notes or other obligations of an entity other than the District, the debt service on which is payable
from Obligation Payments for such Obligations (the "Related Bonds"), will no longer be included in the
calculation of Assumed Debt Service eitber because such Obligations, or the Related Bonds of such
Obligations, will have been paid in full or because such debt service is disregarded pursuant to clause (L)
of the definition of Assumed Debt Service, and (iii) Assumed Debt Service in each fiscal Year for the
portion of such Senior Obligations incurred for the purpose of providing funds to refund or refinance
such Obligations is less than or equal to I 05% of Assumed Debt Service in such Fiscal Year for such
Obligati ons being refunded or refinanced (assum ing for such purposes that debt service on such refunded
or refinanced Obrigations, or debt service on the Related Bonds of such Obligations, is not disregarded
pursuant to clause (L) of the definition of Assumed Debt Service). See Appendix C -"Summary of
Principal Legal Documents -Installment Purchase Agreement" attached hereto for additional
information,
The District may at any ti me incur Reimbursement Obligations with respect to Senior
Obligations.
Subordinate Obligations. The District may at any time incur Subordinate Obligations upon
satisfaction of the conditions provided in the Installment Purchase Agreement. See Appendix C -
"Summary of Legal Documents'' herein for a description of such conditions.
Insurance
The District will procure and maintain or cause to be procured and maintained casualty insurance
on the Wastewater System with responsible insurers, or provide self insurance (which may be provided in
19
3253v18
the form of risk~sharing pools), in such amounts and against such risks (including accident to or
destruction of the Wastewater System) as are usually covered in connection with facilities similar to the
Wastewater System. The District will procure and maintain such other insurance which it shall deem
advisable or necessary to protect its interests and the interests of the Corporation. See Appendix C -
"Summary of Principal Legal Documents -Installment Purchase Agreement" herein.
Allocation of Installment Payments
The table below sets forth the estimated Installment Payments, together with the estimated
interest thereon, assuming the only prepayments made are the mandatory prepayments described under
"The Series 2000 Certificates -Prepayment Provisions" herein. Also set forth are the payments due on
Outstanding Senior Obligations.
20
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lnstallment
Payment
Date
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
$
Estimated InstalJment Payments of the District
lnstallmenl Paymentsl'l
Principal Interest
$
Outstanding Senior
Obligation Pavments<2>
Princieal Interest
5,290,000.00 4,584,862.50
5,570.000.00 8,879,595.00
6, 125,000.00 8,573,925.00
6,610,000.00 8,237,452.50
7,140,000.00 7,874,557.50
I I ,955,000.00 7,482,742.50
12,665,000.00 6,8GG,7GO.OO
13,465,000.00 6,213,847.50
L 4,260,000.00 5,519,010.00
15,2] 0,000.00 4,729,065.00
16, 165 ,000.00 3,886,395.00
5,295,000.00 2,990,722.50
7, 170,000.00 2,698,335.00
20,240,000.00 2,302,380.00
8,200,000.00 l,181,040.00
8,600,000.00 807,120.00
9, 100,000.00 414,960.00
Total
$ 9,874,862.50
l4,449,595.00
l 4,698,925 .00
14,847,452.50
15,014,557.50
19,437,742.50
19,531,760.00
19,678,847.50
I 9,779,010.00
J 9,939,065.00
20,051,395 .00
8,285,722.50
9,868,335.00
22,542,3 80.00
9,38 t,040.00
9,407,120.00
9,514,960.00
<1> Based on an assumed interest rate of 4% per annum, except that the interest rate with respect to $ of the
Series 2000 Certificates through August 1, 2000, is calculated at the interest rate swap rate of __ %. The figures
set forth are rounded and, therefore, the totals may not add precisely.
<2J Reflects combined debt service on Outstanding Senior Obligations based on long-dated interest rate swap rate of
5.55% for the 1992 Refunding Certificates and long-dated interest rate swap rate of 4.56% for the 1993 Refunding
Certificates. See "Financial Obligations -Existing Indebtedness" herein.
STANDBY CERTIFICATE PURCHASE AGREEMENT
The following is a summary of certain provisions of the Standby Certificate Purchase Agreement.
This summary does not purport to be comprehensive. The Standby Certificate Purchase Agreement
relates only to the Series 2000 Certificates and will not, under any circumstances, provide for the
payment of the Purchase Price of Additional Obligations or any Outstanding Senior Obligations.
Reference should be made to the Standby Certificate Purchase Agreement for its complete terms.
Capitalized terms used under this heading nut defined elsewhere in this Official Statement will have the
meanings set forth in the Standby Certificate Purchase Agreement.
General Provisions
[TO COME}
21
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Substitute Liquidity Facility
[TO COME)
Limitations of Standby Certificate Purchase Agreement
The ability to obtain fW1ds under the Standby Certificate Purchase Agreement in accordance w ith
its terms may be limited by federal or state law. Bankruptcy, conservatorship, receivership and sitnilar
laws governing financial institutions or any provider of the Standby Certificate Purchase Agreement may
prevent or restrict payment under the Standby Certificate Purchase Agreement. To the extent the
short-term rating on the Series 2000 Certificates depends in any manner on the rating of the provider of
the Standby Certificate Purchase Agreement, the short-term ratings on the Series 2000 Certificates could
be downgraded or withdrawn if the provider of the Standby Certificate Purchase Agreement were to be
downgraded, placed on credit watch or have its ratings suspended or withdrawn or were to refuse to
perform under the Standby Certificate Purchase Agreement.
The obligation of the provider of the Standby Certificate Purchase Agreement under the Standby
Certificate Purchase Agreement to purchase un-remarketed Series 2000 Certificates is subject to the
conditions and limitations set forth therein, and is also subject to all rights and defenses available to
contracting parties generally. The Standby Certificate Purchase Agreement is not a guaranty to pay the
purchase price of Series 2000 Certificates tendered for purchase. The Standby Certificate Purchase
Agreement is a general contract, subject to certain conditions and li mitations, and is not a letter of credit.
Purchasers of the Series 2000 Certificates should consult their legal counse l for an explanation of the
differences between a general contract and a Jetter of credit or guaranty. The following is included as a
summary of selected differences and does not purport to be complete or definitive.
In general, a letter of credit is an independent, special contract by a bank to pay a third party such
as a bond trustee holding the letter of credit for the benefit of owners of bonds. Banks are required by
law to honor their letters of credit except In a few specified circum stances. If a dispute were to develop
between a bank and its borrower, except in limited circumstances, the dispute should not jeopardize
payment under the letter of credit because (a) the Jetter of credi1 would be independent of the disputed
contract between the borrower and the bank and (b) the beneficiary of the letter of credit (typically, the
bond trustee) would have direct rights under the Jetter of credit. Further, and although there are defenses
to payment of letters of credit, such defenses are I imited by law to specified circumstances.
In contrast, the Standby Certificate Purchase Agreement is a general contract only. No law
expressly requires perfonnance of the contract, although the non-breaching party would be entitled to
allowable damages if there were a breach of contract. Although the Trustee is authorized to draw funds
in accordance with the Standby Certificate Purchase Agreement, the provider of the Standby Certificate
Purchase Agreement has no 1ndependent obligation to the Trustee. If a dispute were to develop, the
provider of the Standby Certificate Purchase Agreement will have all defenses allowed by law or in
equity to its payment under or other performance of the Standby Certificate Purchase Agreement,
including but not limited to disputes (whether valid or not) regarding the authority of either party to enter
into or perform the Standby Certificate Purchase Agreement. More of such defenses are allowed by laws
regarding contracts than by laws regarding letters of credit.
The provider of the Standby Certificate Purchase Agreement or the District may seek to have any
future dispute resolved in court and appealed to final judgment before it performs under the Standby
Certificate Purchase Agreement. Further, even if the District were to prevail against the provider of the
22
3253v1&
Standby Certificate Purchase Agreement, a court would not necessarily order the provider of the Standby
Certificate Purchase Agreement to perform under the Standby Certificate Purchase Agreement; it could
instead award damages for breach of contract to the District. Any such award would not necessarily be in
an amount sufficient to pay the purchase price of the Series 2000 Certificates.
THE BANK
The followmg information has been furnished by the Bank. Such information has not been
reviewed by the District, the Corporation or the Underwriter, and no representation as to the accuracy or
completeness of such information is made by the District, the Corporation or the Underwriter.
Background
(TO COME]
THE DISTRICT
The Orange County Sanitation District is a public agency responsible for regional wastewater
collection, treatment and disposal. The District is the third largest wastewater discharger west of the
Mississippi River. The District provides services to approximately 2.4 million people in the northern and
central portion of the County by treating 240 mgd per day of wastewater. The District serves
approximately 92% of the County population in 470 square miles, or 59% of the County.
The service area which comprises the District was originally formed in 1954 pursuant to the
CoWlty Sanitation District Act, as amended, Section 4700 et seq. of the Health and Safety Code of the
State. The service area of the District originally consisted of seven independent special dfatricts in the
County which were responsible for matters relating to their individual districts. These special districts
were jointly responsible for the treatment and disposal facilities which they each used. The seven
independent districts were successors to the Joint Outfall Sewer Organization, which was formed in 1923
among the Cities of Anaheim, Santa Ana, Fullertoni and Orange, and the sanitary districts of Placentia,
Buena Park, La Habra, and Garden Grove. The Joint Outfall Sewer Organization constructed a treatment
plant and outfall in the early 1920's to serve its members. It was reorganized in 194 7 and J 948 i1Uo
seven county sanitation districts -Districts Nos. I; 2> 3, 5, 6, 7 and l 1. These prior districts were formed
based on engineers' analyses of the gravity flows in the service area. District No. 13 was formed in 1985
and District No. 14 was added in 1986. These districts were co-paiticipants in a Joint Agreement which
provided for the joint construction, ownership, and operation of the prior districts' joint facilities.
In April 1998, at the request of the District's Board of Directors, the Board of Supervisors of
Orange County (the "Board") passed Resolution No. 98-140 approving the consolidation of the then
existing nine special districts into a new. single sanitation district, to be known as the Orange County
Sanitation District. This action was designed to simplify governance structures, reduce the size of the
District's Board of Directors, ease administrative processes, streamline decision-making and consolidate
accounting and auditing processes. The consolidation was effective on July I, 1998.
Pursuant to the Resolution and Government Code Section 57500, the prior districts transferred
and assigned a ll of their powers, rights, duties, obligations, functions and properties to the District. f n
addition, the District assumed all obligations of the prior districts which were several and not joint. See
;,Financial Obligations -Existing Indebtedness" herein. The boundaries of the nine previous districts
were initially used by the District to delineate separate Revenue Areas for budgeting and accounting
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32SJv18
purposes and in order to facilitate the imposition of fees and charges imposed by the District See
"District Revenues -Service Charges1' herein.
The District is managed by an administrative organization composed of a Board of Directors
appointed by twenty-five member cities and agendes which are serviced by the District. The District is
responsible for construction and maintenance of a major portion of the wastewater collection, treatment
and disposal facilities within its boundaries, [although the District may allocate costs of construction and
maintenance to individual Revenue Areas based on gallons of sewage flow.] Revenue Area No. 7 is
responsible fot approximately 200 miles of local sewers in its service area, whereas local sanitary
districts, water districts and cities are responsible for local sewers in the remainder of the District's
service area.
Organization and Administration
The District is independent of and overlaps other formal political jurisdictions. There are many
governmental entities, including the Cou11ty, that operate within the District's jurisdiction. These entities
are exclusively responsible for the administration of their own fiscal affairs, and the District is not entitled
to operating surpluses of, or responsible for operating deficits of, any of the other entities.
The twenty-five member Board of Directors is comprised of representatives from twenty-one
cities, unincorporated areas of the County and three special districts, including mayors of cities, members
of city councils, directors of independent special districts and one member from the Orange County
Board of Supervisors. Several board committees, made up of members of the Board of Directors,
consider topics for action by the Board and make recommendations to the Board. The Chair and the Vice
Chair of the Board are elected every year by a majority of the Board, and serve at the pleasure of the
majority of the Board.
The District has a general manager, general counsel, administrative and operating staff, with
offices located at Reclamation Plant No. 1 in Fountain Valley. The District currently employs an
administrative and operating staff of 519 under the direction of the General Manager, Blake P. Anderson,
P.E., who has served in that capacity since May 2000. Prior to that time, Mr. Anderson served as the
Assistant General Manager for five years and also served as Director of Operations, Director of Technical
Services and Director of Engineering during his tenure with the District since I 980.
Gary G. Streed is the District's Director of Finance/Treasurer. Over the past several years, he has
held various senior positions within the accounting department and served as Chief Administrative
Assistant in the General Manager's office. In October 1989, Mr. Streed was appointed Director of
Finance. He has been with the District since 1967.
David A. Ludwin, P.E., is the District's Director of Engineering, and has been employed by the
District since 1995. Robert P. Ghirelli. PhD., has served as Director of Technical Services for the District
since 1998. Robert J. Ooten, P.E., serves as the Director of Operations and Maintenance and has served
in that capacity for seventeen years. Patrick B. Miles is the District's Director of Information Technology
and joined the District in 1998. Lisa M. Tomko is the District's Director of Human Resources and has
been employed by tl1e District since 1996.
Thomas L. Woodrnff, Esq., of Woodruff, Spradlin & Smart, is the District's General Counsel and
has served in that capacity since 1975. Woodruff, Spradlin & Smart is located in Orange, California and
provides legal services on a contractual basis.
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Services
The District owns and operates regional wastewater collection, treatment, and disposal facilities
foi: the metropolltan area in the northern and central portion of the County. The District receives
wastewater from the collection systems of the cities, sanitary districts and unincorporated areas of the
County located within the District. See "The District-Service Areas11 herein.
Generally, local agency systems collect wastewater from residential and industrial customers and
convey the wastewater to District trunk sewer pipelines for conveyance to the District's treatment plants.
The District has never experienced an interruption in its services.
The District's staff are responsible for operating and maintaining the District's infrastructure,
although some operations are provided by external contractors. Plant No. 2's cryogenic system is
operated under a contract with Air Products and Chemicals, Tnc. which expires in 2004.
All supplies, including chemicals which are essential to the operation and maintenance of the
facilities of the District, are in plentiful supply at reasonable prices. In addition, the District has sufficient
standby systems in the event of equipment failures or system outages.
Service Area
The map on the inside cover page of this Official Statement shows the District's boundaries,
Revenue Areas and the selected cities located within the District. District boundaries were cniginally
established in 1947 and 1948 based on drainage basins. As the existing cities have grown and new areas
have incorporated, city limits have come to overlap District boundaries. The District currently serves an
approximately 471 square-mile area including 23 of the County's 33 cities and unincorporated areas of
the County. The District serves a population of approximately 2.4 million residents and owns sanitary
sewerage facilities with a replacement value of approximately $1.3 bill ion. The following table sets forth
the estimated populations of cities and unincorporated areas served by the District as of January l, 1999
[UPDATE?].
25
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Employees
Estimated Populations of Cities and Unincorporated Areas
Served by the Orange County Sanitation District
as of January 1, 1999
City Poeulation
Anaheim 306,300
Brea 36,400
Bu ena Park 75,900
Costa Mesa 105,600
Cypress 48,500
Fountain Valley 56,400
Fullerton 126,800
Garden Grove 156,500
Huntington Beach 196,700
lrvine 136,600
La Habra 55,800
La Palma 16,400
Los Alam itos 12,050
Newport Beach 74,000
Orange 127,600
Placentia 49,150
Santa Ana 315,000
Seal Beach 27,200
Stanton 33,850
Tustin 66,800
Villa Park 6,625
Westminister 86,200
Yorba Linda 61,800
Cities Subtotal 2, 178, 175
Unincorporated Area 208.:!00
Total 2,386,375
A 1996 study requested by the District by outside consultants determined that District staffing
levels were highet than those found in other private-sector wastewater treatment facilities of comparable
size and concluded that efforts were needed to improve workforce flexibility through training and the use
of technology. During Fiscal Year 1996-97, a District Assessment and Reinvention Team ("DART") was
formed with the goals of reducing costs, improving quality of employee work life and utilizing the best
available technology to increase operating efficiency and productivity. As a result of an enhanced
training program and the implementation of workforce flexibility, the District has reduced ~t.affing levels,
primarily through attrition, from 616 fu ll-time equivalent ("FTE") positions in Fiscal Year 1996-97 to a
projected 508 FTE positions in Fiscal Year 2001-02, a 17.5% reduction. As of January 31, 2000, the
District had a FTE staff of 497, and 507 actual number of employees.
Certain employees in the District are represented by recognized employee organizations, which
include the following: the Orange County Employee Association ("OCEA"), the International Union of
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3253vl8
Operating Engineers -Local 501 ("Local 501 1') and the Supervisory Professional Management Team
("SPMT"). As of March 27, 2000, 102 employees of the District were members of OCEA, 180 were
members of Local 501 and 164 were members of SPMT. The OCEA has represented various bargaining
units since 1979 and a three-year contract is currently in force which was effective in December 1999 and
exp.ires in November 2002. Local 501 has represented the operations and maintenance bargaining unit
since October 1985 and is currently negotiating with the District to renew its contract for a five-year term.
The District has a one-year agreement with the SPMT which expires in June 2000.
For a description of the Orange County Employee's Retirement System, in which the District
participates, and the District's deferred compensation plan, see Note 7 to the Audited Combined Financial
Statements of the Orange County Sanitation District for Fiscal Years Ending June 30, 1999 and 1998, set
forth in Appendix A. The District has no significant or unusual liabilities and costs associated with other
employee benefits, such as vacation, sick leave and other post-employment benefit liabilities.
Insurance
The District has in force basic all risk property and casualty insurance, including theft, flood,
boiler, machinery and earthquake losses to the Wastewater System and in addition maintains business
interruption insurance for $100,000,000. The District is self-insured for portions of workers'
compensation, property damage and general liability. The self-insured portion for property damage
covering fire, :flood and other disasters is $25,000 per occurrence with outside excess insurance coverage
to $300 million for fire, flood and other disasters. The self-insured portion for property damage covering
earthquakes is $100,000 or 5% per unit of insurance, whichever is greater, with outside insurance
coverage to $65 million. The District also maintains outside comprehensive boiler and machinery
insurance with a $100 million per occurrence combined limit with deductibles ranging from $25,000 to
$100,000. The self~insured portion of workers' compensation is $250,000 per person per occurrence
with outside excess insurance coverage to the statutory limit. The District is substantially self-insured for
general liability coverage. Dw·ing the past three years there have been no settlements in excess of
covered amounts. District management believes that there are no unrecorded claims that would
materially affect the financial position of the District.
For more information regarding the District's insurance coverage, see Note 1 to the Audited
Combined Financial Statements of the Orange County Sanitation District for Fiscal Years ending June 30,
1999 and 1998 set forth in Append'ix A.
Existing FacHities
The District's Wastewater System presently consists of two wastewater treatment plants, an
influent metering and diversion structure, twenty-two pump stations, various interplant pipelines and
connections, and the ocean outfall facilities. The District's Wastewater System includes approximately
450 miles of sewers within 12 trunk sewer systems, 200 miles of local sewers in Revenue Area No. 7,
two treatment plants, two discharge outfalls and two emergency weir outlets. The existing treatment
plants have a rated primary treatment capacity of 276 million gallons per day, including standby capacity.
Treatment Plant No. I ("Plant No. I") is located in the City of Fountain Valley, about four miles
from the coast, adjacent to the Santa Ana River. Secondary treatment capabilities are provided by a
trickling filter plant and a conventional air activated sludge plant. Up to 15 million gallons per day
("mgd") of secondary treated effluent is conveyed to an Orange County Water District (the "OCWD'')
plant for tertiary treatment prior to ground water recharge.
27
3253v18
Treatment Plant No. 2 ("Plant No. 2") is located in the City of Huntington Beach, 1 ,500 feet from
the ocean, at the mouth of the Santa Ana River. Secondary treatment capabilities are provided by a pure
oxygen activated sludge plant.
The District employs several phases in the treatment of wastewater. The first phase, preliminary
treatment, removes debris such as eggshells, sand and bio-degradable items. Following extraction, these
materials are sent to a solid-waste landfill. In the next phase, primary treatment, wastewater is pumped to
large settling basins. The liquids are separated from the remaining solids which settle or float as the
wastewater passes through large settling basins called clarifiers. The settled solids are sent to solids
treatment facilities. Approximately half of the primary treated wastewater flows into the ocean outfall
pumping station where it is blended with secondary treated wastewater before being discharged into the
ocean. The other half is sent to secondary treatment for further processing. During secondary treatment,
the wastewater is placed in aeration basins to which naturally occurring bacteria are added to remove
most of the remaining dissolved and suspended microscopic organic solids. The treated wastewater from
both plants is mixed together at Plant No_ 2, where it is then pumped through the ocean outfall pipe that
extends five miles offshore.
The following table sets forth the treatment plants' current and future treatment capacities.
PlantNo. I
Plant No. 2
Aggregate Treatment
Plant Facilities
Wastewater System Treatment Capacities
(MGD)
l 999 Existing Primary Existing Secondary Planned
Actual Flows Treatment Capacity Treatment Capacity Total Capacity <11
89 108 80 208
152 168 90 144
241 276 170 352
(1) The District's "Planned Total Capacity" is based on the Strategic Plan, which estimated the District's
requirements to meet future expected primary and secondary capacity demands.
The District has the capability to divert a portion of the influent flow from Plant No. l to Plant No. 2
through interplant connections. A portion of the flow destined for Plant No. 2 can also be diverted to
Plant No. 1. The treated wastewater from Plant No. 1 flows by gravity to the outfall system through
interconnecting lines. The combined Plant No. l and Plant No. 2 effluent is then pumped through a 120-
inch diameter ocean outfall which is approximately five miles long. The last mile of the outfall pipe is a
diffuser that dilutes the wastewater with seawater in a ratio of 148 parts seawater to one part treated
wastewater at an average depth of l 85 feet. The 120-incb outfall has a capacity of 480 million gallons
per day at high tide. A smaller 78-inch diameter outfall that terminates at a shallower depth is still
maintained, although it is reserved for use in emergencies. This smaller outfall is estimated to have a
capacity of approximately 230 million gallons a day. There is an interplant gas pipeline between Plant
No. 1 and Plant No. 2 which allows digester gas (which is used as fuel for many of the facilities' engines)
from one plant to be used at the other to baJance the supply and demand, which results in efficient gas
uti1ization.
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Permits, Licenses and Other Regulations
The Wastewater System is subject to regulations imposed by the 1972 Clean Water Act, Publjc
Law 92-500 (the "Clean Water Act"), the California Environmental Quality Act of 1970, as amended
(''CEQA") and the Federal Clean Air Act. The regulatory requirements are administered by the United
States Environmental Protection Agency (the "EPA") and the California Regional Water Quality Control
Board ("RWQCB"). Regulations of these agencies deal primarily with the quality of effluent which may
be discharged from the treatment plants and the nature of waste material discharged into the collection
system. The District currently has all applicable permits and licenses necessary to operate its facilities.
The Clean Water Act directed the EPA to monitor and to regulate the discharge .of pollution into
navigable water ways and to enforce the requirements that all wastewater treatment plants in the nation
provide fu ll secondary treatment for sewage. In J 977, CongJess amended the Clean Water Act to allow
waivers of secondary treatment standards for certain ocean dischargers if they can demonstrate, to the
satisfaction of the EPA, that significant adverse environmental impacts would not occur. The District
currently operates under the tem1s and conditions of a modified National Pollution Discharge Elimination
System ("NPDES") permit, pursuant to Section 30 l(h) of the Clean Water Act and issued jointly by the
RWQCB and the EPA. The permit was initially issued in 1985 and was the first modified Section 30l(h)
permit issued to a major wastewater treatment facility. The permit allows deep ocean discharge of a
treated effluent blend resulting from advanced primary and secondary treatment and is awarded only
when a district or agency is able to show there has been no degradation of the ocean environment from its
discharge. Jn addition, a final EJR must be approved by the EPA and the RWQCB before a Section
301(h) permit will be issued_ The District's current permit, which includes the Section 301(h) waiver of
secondary treatment requirements, was issued on May 6, 1998, expires on June 6, 2003 and is renewable
every five years. All conditions imposed by the permit are being successfully met. There is no guarantee
that the modified Section 30l(h) permit will be renewed in the future or that Congress will not revoke the
amendment which allows waivers of full secondary treatment of wastewater. The additional costs
resulting from an unmodified Sec6on 30 l(h) permit would have a substantial impact on future capital
plans of the District because such an unmodified permit would require J 00% secondary treatment of
wastewater. If renewal of the secondary treatment waiver is disallowed in the future, the District projects
that through 2020, $400 million in capital facilities costs would be required to add additional secondary
treatment capacity to the Wastewater System, and operating costs would be increased by $11 million
annually.
1n October l 999, in compliance with CEQA, the Board approved the Strategic Plan (described
below) which incorporates the District's Final Program Environmental Impact Report (the "EIR''). The
Board approved a treatment plan for the collection system which allows a di scharge of a blend of primary
and secondary effluent to meet the requirements as established in the District's current NPDES permit
(the "Ocean Plan").
Tbe South Coast Air Quality Management District ("AQMD'') is the regional governmental
agency charged with implementing the Federal Clean Air Act. AQMD permits are required before a
sewage treatment improvement project can be constructed. Such permits are project specific and contain
construction process requirements, required equipment and standards for predicted air quality. After
construction is completed, the AQMD issues an operation permit These permits are also project specific
and contain air quality standards and other appropriate operational guidelines. Most of the District's
facilities are enclosed in order to trap emissions, which are cleaned by air scrubbers that remove odors. In
addition, the District has implemented an air quality risk reduction program which includes a twenty-year
29
32.S3v l8
plan to improve treatment plant operations and reduce industrial toxic pollutants. The District currently
has all necessary AQMD permits to operate the Wastewater System.
For a two-month period during the summer of 1999, eight miles of beaches in Huntington Beach
were closed by the Orange County Health Care Agency (''OCHCA") due to excessive levels of bacteria in
the water. A three-month interagency source investigation did not identify a definitive source of the
contamination, but determined that the District was not at fault. Although the initial "signature" of the
pollution strongly suggested sewage contamination, the District's review concluded that none of its
facilities caused the excessive bacteria levels and that there was no adverse impact on the capacity of the
Wastewater System. Other agencies are continuing to investigate the soutce of the contamination through
ongoing studies on the local watershed.
Capital Improvement Program
The Strategic Plan. The District's 1989 master plan consisted of a 30-year plan of action for
managing wastewater activities to the year 2020, entitled "2020 Vision, Action Plan for Wastewater
Management and Environmental Protection 1990-2020" (the "Master Plan"). The Master Plan integrated
research facilities planning, environmental analysis, toxic control, water conservation and reclamation,
sludge reuse, other wastewater programs and financial planning into a single unified approach. ln
connection with the preparation of the Master Plan, an in-depth land use study was performed, resulting
in the creation of a uniform land use classification system and a map of the service area of the District.
This land use study included the collection and compilation of the latest available land use plans, reports,
maps and studies from the cities within the District and the County, and interviews with the planning
directors or key staff within the District. Land use planning within the District's service area is the
responsibility of the County for unincorporated areas and cities for areas within their boundaries.
The District has recently updated the Master Plan with a strategic plan (the "Strategic Plan")
which extends the planning process to the year 2020. The Strategic Plan revises many of the assumptions
used to develop the Master Plan including population and land-use projections, the level of building
activity in the service area and the volume of wastewater treated. Land use designations and unit flow
factors were used to project wastewater flows in the District's trunk sewers for present conditions,
through the year 2020 and at ulti.mate build-out of the service area. These flows were included in a
computer model of the District's Wastewater System wh ich identified future sewer capacity
improvements. A twenty-year collection system Capital Improvement Program ("CIP") was developed to
implement the required sewer capacity improvements.
The District evaluated four wastewater treatment scenarios for inclusion in the Strategic Plan
before deciding on a preferred alternative. All of the alternatives considered would, at a minimum, meet
standards set by the Ocean Plan and the District's 1998 ocean discharge permit. Ful I secondary and
partial secondary treatment scenarios were considered, with and without operation of the Groundwater
Replenishment System (the "GWRS''). See ''The Groundwater Replenishment System" below. Diversion
of the District's secondary effluent to the GWRS was a prominent consideration in the treatment
scenarios. ln addition, the Strategic Plan considered potential changes in the reg1,1latory climate for tbe
beneficial reuse of biosolids. The District determined that a comprehensive review of other options to
reduce or manage flows should be considered because the construction of a second ocean outfall would
involve significant environmental, technical and financial considerations_ The District adopted the
Preferred Alternative scenario (the "Preferred Alternative") which continues partial secondary treatment
to meet the requirements of the District's 1998 ocean discharge permit and provides for implementation
of the GWRS.
30
3253vl8
The Strategic Plan includes the followi ng elements:
Pbase l
Phase n
Phase fil
Phase I focuses on the collection and disposal facilities, including: investigation
and repair of the District's 120-inch primary outfall ("Outfall No. 2°),
management of peak hydraulic discharge through the year 2020 and through
"ultimate," planning for the design and construction of the District's collection
and disposal facilities and determination of equitable financial charges and fee
schedules for the District.
Phase II focuses on the treatment facilities, including planning for the design,
construction and operation of the District's wastewater treatment facilities and
the reuse of wastewater and biosolids, i11cluding addressing of regulatory
concerns and requirements.
Phase Ill involves the completion of the environmental studies required by
CEQA with specific emphasis on the near-term planning horizon of five to ten
years from the Strategic Plan date of adoption.
Studies on a preferred level of wastewater treatment and in-sourcing of the ocean monitoring
program have been prepared and incorporated in the Strategic Plan. Water and air regulatory agencies
require that all wastewater facilities be designed to meet the needs of anticipated growth and provide a
reasonable reserve capacity. The District's strategic planning process has met these requirements by
shifting its approach for the development of master plans from a "size and build" approach to a broad-
based, multi-agency cooperative evaluation process.
The District's planning process incorporated an analysis of population growth, dry weather and
peak wet weather flows and the maximum use of existing facilities. The population of the Distric,1's
service area is projected to grow to 2.6 million by the year 2020. Average flow rates at both treatment
plants are projected to increase to 352 million gallons a day by 2020 (208 million gallons a day of
treatment at Plant No. I and 144 million gallons a day at Plant No. 2), up 48% from the J 990 flow.
Tl1e District expects to meet future demands on the Wastewater System through the CIP. This
program has been developed to satisfy anticipated regulatory requirements. increased population,
additional treatment requirements, conservation, energy and other resource savings considerations, odor
control improvements, and air quality protection needs. There are currently 34 projects in the planning
phase, 77 projects in the design phase and 45 projects in the construction phase.
The following table sets forth the major CIP project expenditures through 2020 with and without
the District's participation in the GWRS:
3253v18
Estimated Capital Costs Through 2020
($Millions) <n
31
Projecl
New Collection System
Rehabilitation-Existing Facilities
Water Conservation and Long-Term Reduction ProjectsC2>
Miscellaneous Support Facilities
New Treatment
Phase I Only GWRS
Total Capital Cost
Outfall Cost<3>
Total Capital Cost with Outfall
( 1) All costs are estimated as of 1998 and are derived from the Strategic Plan.
Cost
With GWRS
$ 180
670
150
14
380
120
1500
$1500
Cost
Without GWRS
$ 180
670
150
14
360
1400
150
$1600
(2) Cooperative programs budget includin~ manhole plugging, toilet retrofit contribution and local sewer repairs.
(3) Cost of new 120-ioch outfall. Not included with GWRS, which provides 100 mgd,
For further information concerning the District's CIP, see the Strategic Plan which is available for
review and inspection at the offices of the District.
The following table lists th e various recommendations of the Strategic Plan regarding CIP
projects for the District's Fiscal Year 1999-00 budget, for the following ten Fiscal Years and five-year
summaries of Fiscal Years 2011-2016 and Fiscal Years 2016-2020.
32
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INSERT CHART HERE
33
3253vl8
The Groundwater Replenishment System. The District has taken a multi-jurisdictional approach to
planning for capital facilit ies because many of the methods for reducing or managing flows involve other
jurisdictions. One such project is the GWRS. The District and the OCWD are currently evaluating this
joint project that may become the largest reclamation project in the nation. If completed as planned, the
GWRS would initially reclaim approximately 96 mgd per day during Phase I (2001-02) of the project,
155 mgd per day during Phase CI (2009-10) and 155 mgd per day dllring Phase III (2018-20) of
secondary treated effluent received from the District. The District bas proposed matching OCWD
funding for this project and has budgeted $122 million over a six-year period. The GWRS would delay
the need to modify the existing ocean outfall or to build a second outfall at a potential cost of $150
million.
Integrated Emergency Response Program. Growing awareness of the threat to public utilities
from natural disasters such as earthquakes, floods and other perils has made preparedness for these and
other events a high priority fo r the planners, engineers, and managers of the District. ln recognition of
the potential damage which could occur in the wake of a major earthquake, flood, or other disaster, the
District has implemented an Integrated Emergency Response Program (the "IERP"). The CERP is a two-
volume plan which contains policies, plans and procedures preparing for, and responding to,
emergencies. The District also has analyzed disastet preparedness issues and policies within the Strategic
Plan.
Earthquakes are considered to be the most potentially devastating natural disaster events which
confront the District. The disaster preparedness plan included in the Strategic Plan reviews two possible
major earthquake scenarios: an 8.3 Richter magnitude ("M'') earthquake on the southern San Andreas
fault system and an M 7.0 earthquake on the Newport-Inglewood fault zone, which includes Plant No. 2.
An M 8.3 earthquake on the southern San Andreas fault, while on the whole more destructive than the
M 7.0 Newport-Inglewood fault event, would probably result in less damage in the District's service area
due to the distance of the fault from most of the service area. However, damage from such a major
earthquake on the San Andreas fault would be extensive. Also, the plan indicates that an M 7.0
earthquake on the Newport-Inglewood fault within five miles of the District's sewerage facilities couJd
cause major destruction to those facilities. The disaster preparedness plan in the Strategic Plan indicates
that it would not be economically feasible to upgrade all of the existing sanitary sewerage facilities to
survive an earthquake of this magnitude along the Newport-Inglewood fault. The IERP outlines the
policies and employee actions to be taken before, during and after an earthquake. earthquake response
guidelines and damage assessment procedures.
The Strategfo Plan analyzes the vulnerability of the sanitary sewerage facilities and operations of
the District and plans a risk reduction program wherein the vulnerabili ty of many of the District's sanitary
sewerage facilities to an earthquake can be reduced by recommended retrofit construction measures. The
Strategic Plan also recommends that designs of existing major structllres which were constructed prior to
development of current seismic design standards be reviewed and the structures strengthened, if
necessary. Pursuant to the Strategic Plan, all recent and future projects have been, and will be, designed
to the same high earthquake construction code standards as set for other essential services, such as
hospitals and fire stations.
The Army Corps of Engineers' "All-River Plan" has mitigated any future flooding of the Santa
Ana River system and potential threats to the District's Wastewater System. Also, both Plant No. I and
Plant No. 2 are surrounded by 3-foot to 6-foot high walls, built to federal standards.
34
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The disaster preparedness plan in the Strategic Plan investigates the damage potential posed by
coastal flooding, tsunamis (large ocean waves generated by seismic activity) and windstorms. However,
based on availab le informat1on, the District does not consider any of such events to be a significant threat
to the District's Wastewater System.
The Strategic Plan also makes recommendations regarding fire protection of the Wastewater
System and most of the structures at Plant No. 1 and Plant No. 2 are constructed of fire-resistaht
materials. The TERP describes the procedures needed to respond to a possible disaster. For more
information regarding emergency response policies, the disaster preparedness plan described in the
Strategic Plan and the 1ERP can be reviewed at the District's office.
DISTRICT REVENUES
User Fees
General. The District has the power to establish user fees and charges for services of the
Wastewater System. Such fees and charges are established by the District's board of directors and are not
subject to review or approval by any other agencies.
In Fiscal Year 1997-98, a Rate Advisory Committee (the nRAC11) was established comprised of
representatives from industrial, commercial and residential users. The goal of the RAC was to examine
the then current rate structure and, if needed, develop recommendations for change. The RAC analyzed
the District's rate structure to determine whether its then current sewer service user fees (the "User Fees")
were equitable aJnong residences and industry. This review resulted in a proposal to expand the number
of non-resjdential user categories from one to twenty-three and to provide for gradual rate increases in
seven of the nine Revenue Areas. The increase in the number of categories provided a more equitable fee
structure and also provided for future reductions in single-family residential User Fees. The User Fees
for those categories were based on the average flow and strength of wastewater discharged for each
property type. This rate structure was "revenue neutral,'' so that the total User Fees for each Revenue
Area remained approximately the same. The Board approved the RAC rate structure recommendations
which provided gradual increases, beginning in Fiscal Year 1997-98, over the succeeding five years for
seven of the District's nine Revenue Areas.
On May 24, 2000, the District adopted Ordinance No. OCS0-13 (the "2000 Ordina11ce") which
revises the rate structure adopted by the Board in 1997 for residential users and certain industrial users
effective July I, 2000. The 2000 Ordinance reaffirmed the basis for the establishment of the prior rates
for the 1999-00 fiscal year and that these rates do not exceed the actual cost to the District to provide its
services. The 2000 Ordinance does not replace the rate structure adopted by the Board in l997, but sets
aside the higher rates until the District determines that they are necessary and appropriate.
The District collects User Fees from property owners through the semi-annual property tax bill
distributed by the County in all Revenue Areas, except Revenue Area No. 14. Pursuant to the IRWD
Agreement, the District receives payments from the Irvin e Ranch Water District (the "IRWD") which
directly collects fees from customers through a monthly billing procedure in Revenue Area No. 14.
The District has covehanted in the Installment Purchase Agreement to fix, prescribe and collect
fees and charges to satisfy certain coverage requirements as further described under "Security and
Sources of Payment for the Series 2000 Certificates -Rate Covenant" herein.
35
3253vl8
Residential User Fees. Pursuant to the 2000 Ordinance, residential User Fees for all Revenue
Areas, except Revenue Area No. 14, for Fiscal Years 2000-01 and 2001-02, will be lower than the rate
structure adopted by the Board in 1997. Revenue Area No. 14 is funded through fees paid directly to the
District by the IRWD pursuant to the IRWD Agreement and its fees were not affected by the 2000
Ordinance. The lower User Fees for Fiscal Year 2000-01 were based on the single-family residential rate
of $78 per year which was the rate previously adopted by the Board in 1997 for Revenue Area No. 3.
User Fees in Revenue Area No. 7 will remain at $73 per year for Fiscal Year 2000-01. Beginning in
Fiscal Year 2001-02, User Fees for all Revenue Areas except Revenue Area No. 14 will be $80 per year.
In furtherance of the District's future plans to consolidate all Revenue Areas and all User Fees to a
uniform amount, the District determined that it would use reserve funds to meet necessary operational
expenses to allow for the setting oflower rates for Fiscal Years 2000-0 l and 2001-02.
The table below sets forth the five-year User Fee rate schedule for single-family residences by
Revenue Area.
Annual User Fees
Single Family Residence Rate
Five Year Rate Schedule
Fiscal Years 1997-98 through 2001-02
Revenue
Areas<1> 1997-98 1998-99 1999-00 2000-01 2001-02
l $ 91.36 $96.41 $110.04 $78.00 $80.00
2 73.00 74.00 76.00 78.00 80.00
3 75.00 75.50 76.00 78.00 80.00
s 96.15 84.50 87.50 78.00 80.00
6 78.00 79.00 80.00 78.00 80.00
7 55.00 60.00 66.00 73.00 80.00
11 70.00 80.00 90.00 78.00 80.00
13 100.00 100.00 100.00 78.00 80.00
(I) The average total of fees and charges for Revenue Area No. 14 are $70.80 µer year per single-family residential
unit and are levied and collected directly by the lRWD on a monthly basis. The lRWD subsequently pays fees
to the District on a quarterly basis pursuant to the IR WD Agreement.
Source: Orange County Sanitation District.
The table below sets forth Fiscal Year 1998-1999 total average yearly User Fees for single-family
residences within the District, together with local agency fees and pwperty tax charges and comparable
User Fees, local agency fees and property taxes charged to single-family residences within the
jurisdictions of certain other cities and districts within the State.
36
3253vl8
Comparison of Total Sewer Service Charges
for Single-Family Residences
Annual Level
Sizell! Sewer Service of Treatment(o/ot' Collection
Entity (mgd) Charge I 2 3 Reseonsibilit~
East Bay MUD 80 m $313 100 No
San Francisco 80 275 100 Yes
San Diego 180 268 40 50 10 Yes
San Jose 120 228 100 Yes
Walnut Creek 35 227 100 Yes
Sacramento 143 208 100 No
Los Angeles (City) 350 166 90 10 Yes
Orange County
Sanitation District<•1 240 136 50 50 No
Los Angeles (County) 475 110 40 50 10 No
( 1) Total includes user fees (treatment/disposal), local agency charges and property taxes.
(2) Average amount of wastewater treated daily.
(3) Primary, secondary and tertiary levels of treatment are represented.
(4) Orange County Sanitation District User Fee adjusted to current average.
Source: Orange County Sanitation District Rate Advisory Committee for 1997-98.
Property
Tax
Income
Yes
No
No
No
Yes
Yes
No
Yes
Yes
Industrial User Fees. The District charges industrial User Fees to customers discharging high-
strength or high-volume wastes into the sewer systems. Customers subject to industrial User Fees are
billed directly by the District. The fee charged to each customer is based on the customer's sewage
volume, the concentration of suspended solids, biochemical oxygen demand. Pursuant to the 2000
Ordinance, rates for each component factor were revised for certain industrial users in order to be
consistent with the rates charged to residential users. Total industrial User Fees in Fiscal Year 1998-99
were approximately $5.8 million. Industrial User Fees are applied to both the operating aod capital funds.
Additional Revenues
The District has several sources of additional revenue, including property taxes, capital facilities
capacity charges, capacity rights, permit and inspection fees and interest earnings.
Property T@es. The District receives approximately three percent of the one-percent County ad
valorem property tax levy, based on the allocation procedure under State law. County property tax
revenue allocated to the District varied during Fiscal Year 1996-97 through Fiscal Year 1998-99.
Property tax revenues in Fiscal Year 1996-97 were $28.2 million, $31.3 in Fiscal Year 1997-98 and $32.8
in Fiscal Year 1998-99. Current projections indicate that property tax revenues received by the District
wi ll increase by approximately 2% per year. The apportionment of the ad valorem tax is pursuant to a
revenue program adopted by the District in April 1979 to comply with the EPA, the RWQCB, legal and
contractual requirements and Board policy. All Revenue Areas except Revenue AY'ea Nos. 13 and 14
receive a share of the District's portion of the property tax levy.
37
3253vl8
Capital Facilities Capacity Charges. Capital facilities connection charges are one-time fees with
two components, paid at the time property is developed and connected to the Wastewater System. The
fees are imposed by the District pursuant to Section 5471 of the California Health and Safety Code and
are levied to pay a portion of the District's capital costs and for access to capacity in the Wastewater
System. Currently, the District has capital facilities capacity charges of $1 ,820 per residential unit (three-
bedroom); [however, under the curtent industrial use ordinance, additional capital facilities capacity
charges can be imposed on industrial users who place larger than average demand on the Wastewater
System.] Member cities and sanitary districts charge capital facilities capacity charges for the District
when building permits are issued. Capital facilities capacity charges are reviewed annually to reflect the
changes in the value of the Wastewater System to which a new customer is connecting.
On December 15, 1999, the Board approved District Ordinance No. OCSD 99-11 (the "1999
Ordinance") which established a comprehensive capital faci lities capacity charge. The 1999 Ordinance,
effective as of January 1 , 2000, renamed connection fees as capital facilities capacity charges and
provided a more equitable schedule of fees among industrial, commercial and residential users. Pursuant
to the 2000 Ordinance, capital facilities capacity charges were revised for high demand industrial users in
five incremental increases from 1999-2001.
Pursuant to an agreement with the (RWD, the IRWD is not required to pay capital facilities
capacity charges related to development in the Downcoast Area (as defined in the agreement dated March
9, 1988, by and between the District and the lRWD, the "Downcoast Agreement") and in exchange, the
IRWD provides funding to Revenue Area No. 5 for the construction costs of certain wastewater
collection, transmission, treatment and disposal facilities to the used by the IRWD.
Sale of Capacity. The District has entered into agreements with the Santa Ana Watershed Project
Authority ("SA WPA") whereby wastewater from Opper Santa Ana Ri ver Basin dischargers can be
transported through the District's Santa Ana River Interceptor to the District's treatment facilities. This
program was developed in the early l 970's. The agreements establish control mechanisms regarding the
quality of wastes deposited into the Wastewater System. At the present time, SA WPA has purchased and
paid for 30 million gallons a day of capacity rights in the District's Santa Ana River Interceptor and 8
million gallons a day of capacity in the District's treatment plants. Additional treatment plant capacity can
be purchased in increments at the District's current replacement cost. SA WPA also makes an annual
capital rep lacement payment equal to 3% of the accumulated total value of its capacity rights.
The Santa Ana River Interceptor Line ("SARI") was built in the Chino Basin Preserve Area in
order to remove dairy farm wastes and accommodate future urban development Salts in the washwater
generated from the cleaning of cows and milking equipment were leaching into the groundwater in the
Chino Basin and the SARI was built to divert the washwater from this area. However, due to the nature
of the Chino Basin Preserve, the development of any infrastructure in the area to accommodate the SARI
was limited. The current SARI multi-phase project is designed to connect several dairies to the SARI.
Future expansions of this project could include connecting other dairies and other wastestreams with the
SARJ line. In addition, removing the washwater from the Chino Basin is critical to the success of the
GWRS because allowing water from GWRS to percolate in the groundwater with washwater would
undermine the credibility and effectiveness of the GWRS project. See "The District -Capital
Improvement Program" herein.
Orange Cow1ty Bankruptcy Settlement. As of February 24, 2000, the District has received
approximately $65 million in settlement revenues from the Orange County bankruptcy litigation fund due
to the settlement of claims arising from the 1994 Orange County bankruptcy. Settlement recoveries and
38
3253v18
repayments by the County have resulted in the District recovering 94% of the amount it had on deposit
with the Orange County Investment Pool at the time of the Orange County bankruptcy. No additional
revenues are expected from this settlement.
Wastewater Treatment History
The average yearly influent flow to the District has remained relatively stable for the preceding
five years. The wastewater flow for Fiscal Year 1994-95 was 243 mgd and for Fiscal Year 1998-99 was
241 mgd. The peak for the last five years was 254 mgd in FiscaJ Year 1997-98.
Customers
The historical number of customers served by the District for the Fiscal Years 1994-95 through
1998-99 and the projected number of customers served by the District for the Fiscal Years 1999-00
through 2003-04, identified in Equivalent Dwelling Units ("EDUs"), are'Set forth in the table below.
Fiscal Year
1994-95
1995-96
J 996-97(')
1997-9811>
1998-99
Historical and Projected Equivalent Dwelling Units
Fiscal Years 1994-95 through 2003-04
Number
ofEDUs Fiscal Year
861,761 1999-00
858,076 2000-01
849,576 2001-02
814,001 2002-03
851, 770 2003-04
Projected
ED Us
854,620
857,470
860,320
863,170
866,020
Source: Orange County Sanitation District.
(I) [EDUs for Fiscal Years 1996-97 and 1997-98 were reduced because certain commercial users were entitled
to refunds of portions of their User Fees based on their documentation that their actual usage was less than
what was calculated using the District's square footage formulas. The establishment of more equitable rates
pursuant to the RAC since Fiscal Year 1997-98 have limited the number and dollar amount of future
rebates to commercial users.)
The following table shows the number of residential and commercial customers and industrial
customers and the approximate percentages of User Fee revenues derived from the combihed residential
and commercial use and industrial use for the last five fiscal years.
Fiscal
Year
1994-95
1995-96
1996-97
3253vl8
Number of Accounts and Revenues
by Customer Class
for the Fiscal Years Ending June 30
Residential/Commercial
Number of Equivalent Percentage of Number of
Single-Family User Fee Customer
Dwellings Revenues Accounts
861,761 91.8% 945
858,076 88.3 935
849,576 89.8 892
39
Industrial
Percentage of
User Fee Total
Revenues Revenue
8.2 $6,009,756
1 l.7 6,974,638
10.2 6,605,147
1997-98
1998-99
814,001
851 ,770
91.6
92.2
869
678<1>
8.4
7.8
<1> (Certain industrial users were placed on the tax bill beginning in Fiscal Year 1998-99.]
Source: Orange County Sanitation District.
6,015,150
5,658,135
The ten largest industrial customers of the District for the Fiscal Year ended June 30, 1999 are
shown in the table below. These industrial customers paid a total of $2, I 70,517 for services of the
District, or approximately 41 % of the District's $5,303,855 total revenues received from industrial
customers, and approximately 3 .14% of the District's total User Fee revenues of $66,923 ,35 8.
Largest Customers of the District
for the Fiscal Year Ended June 30, 1999
User
Kimberly Clark
Adohrfarms
MCPFoods
Favorite Foods
Disneyland
AERA Energy
Rockwell
Sundor Brands
Knotts Berry Farm Foods
Dean Foods
TOTAL
Source: Orange County Sanitation District
Assessed Valuation
Service
Charges
$ 518,458
358,870
291,377
208,902
193,851
144,871
134,148
110,1 08
109,216
100,716
$2,170,517
Percentage of Total
User Fee Revenues
0.75%
0.52
0.42
0.30
0.28
0.21
0.1 9
0. 16
0.16
0.15
3.14%
The assessed valuation of property in the County is established by the County Assessor, except
for public utility property which is assessed by the State Board of Equalization. Due to changes in
assessment required under State Constitution Article XIIIA, the County assessment roll no longer
purports to be proportional to market value. See "Limitations on Taxes and Revenues" herein. Generally,
property can be reappraised to market value only upon a change in ownership or completion of new
construction. The assessed value of property that has not incurred a change of ownership or new
construction must be adjusted annually to reflect inflation at a rate not to exceed 2% per year based on the
State consumer price index. ln the event of declining property value caused by substantial damage,
destruction, economic or other factors, the assessed value must be reduced temporarily to reflect market
value. For the definition of full cash value and more information on property tax limitations and
adjustments, see "Limitations on Taxes and Revenues" herein.
The County Assessor detennines and enrolls a value for each parcel of taxable real property in
the County every year. The value review may result in a reduction in value. Taxpayers in the County
also may appeal the determination of the County Assessor with respect to the assessed value of their
property. In 1999, approximately 6,326 assessment appeals were filed in the County.
40
1253vl8
As of February 2000, the balance of pending applications was 7,438. This included current and
prior years' filings. Determinations of value are made by a three-member Assessment Appeals Board or
a Hearing Officer. Waivers extending the statutory two-year processing deadline are obtained from the
County for applications approaching this time limit.
The table below shows a five-year history of assessed valuations in the District since Fiscal Year
J 994-95. Over the years shown, assessed valuations in the District have increased at an average rate of
2.17% pediscal year.
Assessed Valuations of Property in the District
Fiscal Years 1994-95through1998-99
(Secured Roll)
Fiscal Year
1994-95
1995~96
1996-97
1997-98
1998-99
($Billions)
Value
$131.3
129.9
129.6
128.4
134.7
Source: County of Orange Auditor-Controller.
Tax Levies and Delinqu~ncies
Property taxes are based on assessed valuation which is determined as described under "District
Revenues -Assessed Valuation" herein. Jn accordance with the California Revenue and Taxation Code,
the County tax collector collects secured tax levies for each Fiscal Year. P roperty taxes bl) the secured
roll are due in two installments, on November 1 and February 1. If unpaid, such taxes become delinquent
after December 10 and April J 0, respectively, and a ten percent penalty attaches to any delinquent
payment. In addition, property on the secured roll with respect to which taxes are delinquent is declared
tax-defaulted on or about June 30. Such property may thereafter be redeemed by payment of the
delinquent taxes and the delinquency penalty, plus costs and redemption penalty of one and one-half
percent per month to the time of redemption. If taxes are unpaid for a period of five years or more, the
tax-defaulted property is subject to sale by the County Treasurer-Tax Collector.
Property taxes on the unsecured roll are due as of the January 1 lien date and become delinquent,
if unpaid, on August 3 1. A ten percent penalty attaches to delinquent taxes on prope1ty on the unsecured
roll and an additional penalty of one and one-half percent per month begins to accrue on November 1.
The taxing authority has four ways of collecting unsecured personal prope1ty taxes: (1) a civil action
against the taxpayer; (2) filing a certificate in the office of the County Clerk specifying certain facts in
order to obtain a judgment lien on certain property of the taxpayer; (3) filing a certificate of delinquency
for recordation in the County Recorder's office in order to obtain a lien on certain 'property of the
taxpayer; and (4) seizure and sale of personal property, improvements or possessory interests belonging
or assessed to the taxpayer.
The table below shows a five-year history of the District's total ad valorem property tax levies,
and the percent of delinquencies.
41
3253vl8
Fiscal Year
1994-95
1995-96
1996-97
1997-98
1998-99
Total Property Tax Levies and Delinquencies
in the District for
Fiscal Years 1994-95 through 1998-99
Total Tax alid
User Fee Levy
$91,562,000
91,844,000
89,794,000
90,953,000
98,557,000
Total Tax and
User Fee Collection
$88,533,000
91,065,000
82,369,000
78,873,000
93,686,000
Source: Orange County Auditor-Controller's Office.
% of Delinquencies
to Tax Levy
3.21%
1.86
2.44
3.34
2.10
The District currently participates in the County's Teeter Plan whereby each participating local
agency receives annually 100% of the secured property tax levies to which it otherwise entitled,
regardless of whether the County has actually collected the levies.
Budgetary Process
The District's operating fund budget relies on revenues from property taxes and User Fees, both
of wh ich are collected on the property tax bill. See "Financial In formation -Revenues." The District
receives tax revenues from the County in eight allocations, with the largest receipts in December and
April. The District operates on a Fiscal Year beginning each July I . The operating fund budgets include
funds to cover the dry period of each tax year, i.e., the period from the beginning of the Fiscal Year until
the first taxes are received. The dry-period requirement is budgeted at one-half of the annual operating
fund budgeted expenditures. The District uses the accrual method of accounting in its budgets. The
District has confor:med to its budgets for the last five fiscal years and is conforming to its budget for the
current fiscal year.
The District's annual budget preparation process begins in January of each year and concludes in
June upon its adoption. The General Manager reviews the final operating budgets and then distributes
them to the Directors and District Committees for consideration. The Board of Directors then adopts the
proposed annual budgets, with any revisions, in June of each year.
Budgetary control is exercised at the individual Department level and administrative policies
provide guidelines on budget transfers and the authorization necessary to implement transfers. A budget
adj ustment is a transfer which does not change the total appropri ated amount within a Revenue Area and
does not require Board action. Approval may be granted by the General Manager or the Department Head
in certain circumstances. Department Heads have the discretion to reapp0ttion funds between certain tine
i1ems within a division but may not exceed total appropriated amounts for each department. They may
also transfer staff across divisional lines. The General Manager and Board of Directors must approve
additional capital outlay items.
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3253v18
A budget amendment is an adjustment to the total appropriated amount within a Revenue Area
which was not included in the original budget. These supplemental appropriations require formal action
by the Board of Directors. Prior year reserves or fund balances may be appropriated to fund items not
previously included in the adopted budget. Reserves or fund balances exceeding minimum amounts
required by fiscal policies may be appropriated if it is determined to be in the best in terest of the District.
Directors may also appropriate reserves in case of emergencies or unusual circumstances.
Reserves
In 1998, the District revised its reserve policy and established eight separate reserve funds for its
retained earnings. The Cash Flow Reserve was established to fund operation, maintenance and
certificates of participation debt service expenses for the first half of the fiscal year. The Opera6ng
Cont ingency Rese1·ve was established to provide for non-recurring expenditures that were not anticipated
when the annual budget and User Fees were adopted. This fund is equal to ten percent of the District's
annual budget. The Capital Improvement Reserve was established to fund annual increments of the
capital improvement program w ith a target level at one half of the average anm.1a.l capital improvement
program through the year 2020. The Catastrophic Loss, or Self-Insurance Reserve is established for
property damage including fire, flood and earthquake, general liability and workers' compensation. The
level ofreserve in this fund is maintained at a level to fund the District's non-reimbursed costs which a.re
estimated to be $57 million. The Short-Term CapitaJ Fund Reserve was created for specific short-term
capital improvements such as the GWRS. The Capital Replacement/Renewal Reserve was established to
provide thirty percent of the funding to replace or refurbish the current collection, treatment and disposal
facilities. The initial reserve level for this fund was established at $50 rnillion and is augmented by
interest earnings and a portion of the annual User Fees. Debt Service Reserves are controlled by a trustee
pursuant to the provisions of certificates of participation issues and is not available for the general needs
of the District. The Rate Stabilization Reserve accumulates all available funds which exceed the targets
for all other reserves. These funds are applied to future years' needs and must be maintained at specified
levels. There is currently no established target for this reserve. As of .June 30, 1999, the District's
designated retained earnings totaled $376 million. See Appendix A -"Audited Combined Financial
Statements of the Orange County Sanitation District for Fiscal Years Ending June 30, 1999 and 1998"
herein.
Summary of Operating Data
Set forth in the table below is a summary of historic operating results for the District for fiscal
years 1994-95 through 1998-99. The information presented in the summary should be read in conjunction
with the financial statements and notes. See Appendix A -"Audited Combined Financial Statements of
the Orange County Sanitation District for Fiscal Years Ending June 30, 1999 and 1998" herein. The
operating data include Capital Facility Capacity Charges as revenue rather than as contributed equity as
presented in the financial statements and do not include depreciation and amortization expenses.
Accordingly, i:he selected operating data do not present the results of operations as determined under
generally accepted accounting principles.
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Summary of Historical District Revenues
and Financial Information
for Fiscal Years 1994-95 through 1998-99
($Millions)
1994-95 1995-96 1996-97 1997-98 1998-99
Revenues:
Residential User Feesm $ 62.6 $ 62.0 $ 55.9 $ 50.2 $ 61.6
Industrial User Fees 7.6 6.3 6.3 6.4 5.8
Revenue Area No. 14 fees 7.9 3.2 4.6 4.7 3.2
Ad Valorem Taxes 27.3 29.3 28.2 31.3 32.8
Interest Eamio_gsv> 18.5 20.2 21.0 26.4 23.7
Capital Facilities Capacity
Charges<3> 6.6 9.5 9.7 11.3 8.8
Total Revenues $130.6 $130.5 $125.7 $130.2 $135.8
Operations and Maintenance
Expenses 55.3 57.6 54.4 49.9 49.4
Net Revenues $ 75.3 $ 72.9 $ 71.3 $ 80.4 $ 86.5
Debt Service $ 35. I $ 31.5 $ 31.1 $ 31.3 $ 30.6
Cash Funded CIP $ 33.5 $ 54.2 $ 48.8 $ 49.3 $ 49.0
Ending ReservesC4) $348.0 $340.0 $316.0 $340.0 $343.0
Coverage Ratios 2.15x 2.32x 2.29x 2.57x 2.83x
(1) Net of rebates to commercial users.
(2) Cash basis. Excludes any unrealized gains or losses reported in the District's Comprehensive Annual Financial
Reports.
(3) Prior to January I, 2000, these charges were referred to as connection fees.
(3) Excludes any Debt Service Reserve Funds.
Source: Orange County Sanitation District.
Projected Operating Data
The table below sets forth projected operating results of the District for fiscal years 1999-00
through 2003-04. The preparation of such projections was based upon certain assumptions and certain
forecasts with respect to conditions that may occur in the future. While the District believes that these
assumptions and forecasts are reasonable for the purposes of the projected selected operating data, it
makes no representations that they will in fact occur. To the extent that actual future conditions differ
from those assumed herein, the data will vary. Some of the more significant assumptions and
considerations inc lude the following:
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(i) Total wastewater flows for Fiscal Year 1999-00 are budgeted to decrease to 250
mgd from the prior year budget of 255 mgd. The cost to treat and dispose of l million gallons is
estimated at $482 per mill ion gal Ions of wastewater treated, a decrease from $486 in Fiscal Year
1998-99.
(ii) Capital facil ities capacity charges and annexation fees, were reevaluated [and
revised] as part of the Strategic Plan.
(iii) The District will issue [$150] million in Certificates of Partjcipation for the CIP
in Fiscal Year 2000-01 . This is [$80] million greater than the Fiscal Year 2000-01 portion of the
five~year debt issuance schedule of [$4 70] million approved as part of the Fiscal Year 1997-98
User Fee adoption process in order to provide a 50/50 mix with pay-as-you-go funding and to
recover prior reserve reductions.
(iv) Pursuant to the 2000 Ordinance, residential User fees for all Revenue Areas
except Revenue Area No. 14, for Fiscal Years 2000-01 and 2001-02 will be lower than the User
Fees adopted by the Board in 1997. See "District Revenues -User Fees" herein.
(v) Property tax revenues in Fiscal Year 1999-00 are being projected at a 5.0%
increase and wi II continue to rise a result of resales and new development.
Summary of Projected District Revenues
and Financial Information
for Fiscal Years 1999-00 through 2003-04
($ Millions)
1999-00 2000-01 2001-02 2002-03 2003-04
Revenues:
Residential User Fees<•> $ 68.1 $ 71.8 $ 75.5 $ 79.1 $ 83.0
Industrial User Fees 5.4 5.5 5.7 5.8 6.0
Revenue Area No. I 4 fees 5.8 6.6 3.9
Ad Valorem Taxes 32.9 33.6 34.3 35.0 35.7
Interest Earnings 25.0 28.7 23.5 26.3 21.2
Capital Facilities Capacity
Charges 5.2 5.2 5.2 5.2 5.2 --Total Revenues $136.6 $144.8 $150.0 $158.0 $155.0
Operations and Maintenance
Expenses 53.4 54.5 55.6 56.7 57.8 --Net Revenues $ 83.2 $ 90.3 $ 94.4 $) 01.3 $ 97.2
Debt Service $ 29.3 $ 34.2 $ 39.3 $ 46.2 $ 49.8
Coverage Ratios 2.84x 2.64x 2.40x 2.19x 1.95x
Management's Discussion and Analysis of Operating Data
The District's projected outlay for the Fiscal Year 1999-00 capital improvement program is $78.7
mi llion, an increase of 8.7% over the prior year, pursuant to the Strategic Plan.
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111 fiscal Year 1999-00, the District will have a $1.2 million, or 2.75% decrease in Joint
Operating costs, which is comprised of Treatment Plant Operations, Maintenance and Administration.
The decrease is primarily attributable to the projected reduction in the number of full-time staff from 543
in Fiscal Year 1998-99 to approximately 518 in FiscaJ Year 1999-00. The Joint Operating budget for
FiscaJ Year 1999-00 is $44.0 million compared to $45.2 million in Fiscal Year 1998-99.
The District and the OCWD are currently evaluating a joint project that may become the largest
reclamation project in the nation. [f completed as planned, the GWRS would reclaim approximately 100
million gallons of water per day. The District has proposed matching OCWD funding for this project and
has budgeted $122 million over a six-year period. The GWRS would delay the need to modify the
existing ocean outfall or to build a second outfall at a potential cost of $150 million. The GWRS will
impact the District's other CIP projects whether or not the District participates in this project. See "The
District-Capital fmprovement Program,, herein.
In Fiscal Year 1997-98, DART completed its Reinvention Report which provided cost-saving
recommendations which were implemented the following year. See "The District-Employees'' herein.
Estimated savings are a five-year return of $3,290,000 with annual savings of$1,440,000 thereafter. See
"The District -Employees" herein.
The District has received a renewal of the five-year modified National Pollution Discharge
Elimination System perm it. See "The District -Permits, Licenses and Other Regulations" herein. The
permit continues to allow 50% secondary treatment of the influent flow, thereby eliminating costs of
attaining full secondary treatment. The District's staff estimates the additional capital costs to attain full
secondary treatment of $250 million (in 1989 dollars) and annual additional operation and maiotenance
costs of up to $50 million a year by 2020 (in 1989 dollars). See "The District -Permits, Licenses and
Other Regulations" herein.
Investment of District Funds
State statutes authorize the District to invest in obligations of the United States Government, state
and local governmental agencies, negotiable certificates of deposits, bankers acceptances, commercial
paper, reverse repurchase agreements and a variecy of other investment instruments which are allowable
under California Government Code Section 53600 et seq.
As a result of the Orange County bankruptcy and the District's prior investment in the County
pool, the District has revised its investment policies and its funds are now managed by an external money
manager; Pacific Investment Management Company ("PIMCO"). Mellon Trust c<'Melloh Trust,,) serves
as the District1 s independent custodian bank for its investment program. Callan Associates ("Callan")
serves as the District's independent investment advisor.
At [January 31, 2000][UPDATE], the externally managed portfolio consisted of a short-term
investment pool of $19,450,083 with maturities to 180 days, and a long-term investment pool of
$279 ,211,886 with maturities to five years. Investments consist of United States Government securities,
corporate bonds and commercial paper. The District also invests a portion of its funds in the California
Local Agency [nvestment Fund (''LAIP'). The District's portfolio contains no reverse repurchase
agreements.
Deposits in banks are maintained in financial institutions which provide deposit protection on the
bank balance from the Federal Depository Insurance Corporation. The California Government Code
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requires State banks and savings and loans to secure local government deposits by pledging government
securities equal to 110% of the deposits or by p ledging first trust deed mortgage notes equal to 150% of
the deposits.
The District's Investment Policy requires that the District invest public funds in a manner which
ensures the safety and preservation of capital while meeting reasonable anticipated operating expenditure
needs, achieving a reasonable rate of return and conforming to all state and local statutes governing the
investment of public funds. The primary objectives, in order, of the District's investment activities are
safety, liquidity and return on investments.
The table below provides a summary of the District's p01tfolio distribution as of (January 3 1,)
2000:
%OF
PORTFOLIO DISTRIBUTION COST MARKET VALUE TOTAL
Cash & Cash Equivalents
United States
Commercial Paper -Discount $ 2,678,474.50 $ 2,678,474.50 13.63%
Treasury Brns -Less Than l Year 3,411,181.67 3,4l l,18L67 17.36
Federal Home Loan Mortgage-Less Than 1 Year l,199,291.67 l,199,291.67 6.10
FNMA Issues -Less Than I Year 2,485,301.39 2,496,450.00 12.70
Fed Home Loan Bank-Less Than l Year 3,697, 194.17 3,697,194.17 18.81
Mutual Funds 134,632.92 134,632.92 0.69
Total United States 13,606,076.32 13,617,224.93 69.29
Total Cash and Cash Equivalents 13,606,076.32 13,617,224.93 69.29%
Pixed Income Securities
United States
United States Agencies $ 999,200.00 $ 999,840.00 5.09%
Asset Backed Securities (Car Loan) 905,913.00 903,069.00 4.60
Banking & Finance l,497,145.50 1,494,611.00 7.61
Industrial 1,935,205.00 l ,925,803 .00 9.80
Utility-Telephone 512,080.00 509,535.00 2.59
Total United States 5,849,543.50 S,832,858.00 29.68
Total Fixed Income Securities $ 5,849,543.50 $ S,832,858.00 29.68%
Other Portfolio Assets
Payables/Receivables $ 202,020.35 $ 202,020.35 1.03%
Total Other Portfolio Assets $ 202,020.35 $ 202,020.35 1.03%
Net Portfolio Assets $19,657,640.17 $19,652,103.28 100.00%
Source: Mellon Trust.
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FINANCIAL OBLIGATIONS
Existing lndehtedpess
The D istrict has the power and authority to incur debt pursuant to Section 4764 of the Act. In
September 1992, the State Legislature enacted Senate Bill 844 which reduced the special district ad
valorem property tax revenues not pledged to debt service by 35 percent. As a result, the District
dedicated all future property tax revenues to the payme11t of debt service on their current and future
outstanding debt issues. As of January 1999, the District has no outstanding general obligation bonds.
The table below describes the District's outstanding certificates of participation as of June 1,
2000.
Outstanding Certificates of Participation Debt at June 1, 2000
Amount Outstanding
Issued Issue Date Balance Final Maturit::t
1990 Series A Certificates<1> $100,000,000 2/5/90 $ 83,300,000 8/1/15
1991 Series B Certificates<•> 117,555,000 5/1/91 18,695,000 8/1/04
1992 Series C Certificates<•> 98,500,000 9/1/92 86,200,000 8/ l/17
1992 Refunding Certificates 160,600,000 12/3/92 129, 110,000 8/1/13
1993 Refunding Certificates 46,000,000 9/2/93 43,950,000 8/1/16
Total Long-Term Debt $5221655,000 $361,255,000
(1) The 1990 Series A, 1992 Series C and a portion of the 1991 Series l3 Certificates will be refunded by the Series
2000 Certificates.
ln December 1992, the District issued the 1992 Refunding Certificates to advance refund the
remaining outstanding principal balance of the 1986 Certificates and a portion of the outstanding
principal balance of the 1991 Series B Certificates. In connection with the execution and delivery of the
1992 Refunding Certificates, the District entered into an interest rate swap agreement (the "1992 Swap
Agreement") with AIG Financial Products Corp. ("AlG-FP") whereby AIG-FP agreed, subject to the
terms of the 1992 Swap Agreement. to pay to the District a floating amount equal to the interest rate
evidenced by the 1992 Refunding Certificates and the District agreed to pay to AIG-FP a fixed amount.
The 1992 Refunding Certificates require annual payments of principal and interest (calculated at a rate of
5.55% per annum) ranging from $6,929,602 to $21, 152,220. Payments with respect to the 1992
Refunding Certificates are on a parity with the payment obligations with respect to the Series 2000
Certificates and the 1993 Refunding Certificates (described below). The amounts payable by t11e District
Lmder the 1992 Reimbursement Agreement and the 1992 Swap Agreement are on a parity with the
District's payment obligations with respect to the 1992 Refunding Certificates and th~ Series 2000
Certificates.
ln September 1993, the District issued the 1993 Refunding Certificates to advance refund a
portion of the outstanding principal balance of the 1991 Series B Certificates. ln connection with the
execution and delivery of the 1993 Refunding Certificates. the District entered into an interest rate swap
agreement (the "1993 Swap Agreement") with Societe Generale {"SocGen ') whereby SocGen agreed,
subject to the terms of the 1993 Swap Agteement, to pay the District a floating amount equal to the
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interest rate evidenced by the 1993 Refunding Certificates and the District agreed to pay to SocGen a
fixed amount. The 1993 Refunding Certificates require annual payments of principal and interest
(calculated at a rate of 4.56% per annum) ranging from $1,256, 120 to $9,514,960. Payments with respect
to the 1993 Refunding Certificates are on a parity with the payment obligations with respect to the l 992
Refunding Certificates and the Series 2000 Certificates. The amounts payable by the District under the
1993 Reimbursement Agreement and the 1993 Swap Agreement are on a parity with the District's
payment obligations with respect to the 1993 Refunding Certificates and the Series 2000 Certificates.
The prior districts' obligations to make Installment Payments with respect to the Outstanding
Senior Obligations were several and not joint; however, pursuant to the 1998 consolidation of the prior
districts, the District assumed complete responsibility for all obligations and duties of the prior districts
pursuant to the consolidation. See 'The District -Background," "Plan of Refunding" and "Security and
Sources of Payment for the Series 2000 Ce1tificates" herein.
Anticipated Financings
Over the next ten years, the District projects $1,027 .0 million in future joint capital improvements
and in future collection system capital improvements. Fifty percent of these improvements are expected
to be funded through current revenues and the balance will be funded through the issuance of new debt.
In calendar year 2000, the District expects to issue approximately $150 million of certificate of
participation debt, and a total of $664 million in certificates of participation over the next ten years.
Payments with respect to any such indebtedness are expected to be issued as Additional Obligations
under the Installment Purchase Agreement on a parity with the Installment Payments.
Direct and Overlapping Bonded Debt
The table below presents the aggregate direct and overlapping bonded debt of the District.
[TO COME]
Direct and Overlapping Bonded Debt of the District
(as of· __ , 2000)
Source: California Municipal Statistics, Inc.
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THE CORPORATION
The Corporation was organized on April 26, 2000 as a nonprofit public benefit corporation
pursuant to the Nonprofit Public Corporation law of the State. The Corporation's purpose is to render
assistance to the District in its acquisition {)f equipment, real property and improvements on behalf of the
District. Under its articles of incorporation, the Corporation has al l powers conferred upon nonprofit
public benefit corporations by the laws of the State, provided that it will not engage in any activity other
than that which is necessary or convenient for, or incidental to the purposes for which it was formed.
The Corporation is a separate legal entity from the District. It is governed by a twenty-five
member Board of Directors (the "Board of Directors"). The Corporation has no employees. All staff
work js performed by employees of the District. The members of the Corporation's Board of Directors
are the Board of Directors of the Orange County Sanitation District.
The District's Director of Finance and other District employees are available to provide staff
support to the Corporation.
The Corporation has not entered into any material financing arrangements other than those
referred to in this Official Statement. Further information concerning the Corporation may be obtained
from the Orange County Sanitation District office at 10844 Ellis Avenue, Fountain Valley, California,
92708-7018.
LIMITATIONS ON TAXES AND REVENUES
Property Tax Rate Limitations -Article XIIIA. Article XIIIA of the State Constitution limits the
taxing powers of State public agencies. Article XJJIA provides that the maximum ad valorem tax on real
property cannot exceed 1 % of the "full cash value" which is defined as "the county assessor's valuation
of real property as shown on the 1975-76 tax bill under ''full cash value" or, thereafter, the appraised
value of real property when purchased, newly constructed, or a change in ownership has occurred after
the 1975 assessment", subject to exceptions for certain circumstances of transfer or reconstruction and
except with respect to certain voter approved debt. The "full cash value" is subject to annual adjustment
to reflect in creases, not to exceed 2% per year, or decreases in the consumer price index or comparable
locaJ data, or to refl ect reduction in property value caused by damage~ destniction or other factors.
Article XIIIA requires a vote of two-thirds of the qualified electorate to impose special taxes,
while generally precluding the imposition of any additional ad valorem, sales or transaction tax on real
property. As amended, Article XIIIA exempts from the l % tax limitation any taxes above that level
requjred to pay debt service on certain voter-approved general obligation bonds for the acquisition or
improvement of real property. In addition, Article XIllA requires the approval of two-thirds of all
members of the State Legislature to change any State laws resulting in increased tax revenues.
Appropriations Limitations. The State and most entities of local government are subject to an
annual "appropriations limit" imposed by Article XITIB of the State Constitution. Article XIIIB prohibits
an entity of government from spending "appropriations subject to limitation" i.n excess of the
appropriations limit imposed. ArticleXITIB, originally adopted in 1979, was modified substantially by
Propositions 98 and 111 in 1988 and 1990, respectively. "Appropriations subject to limitation" are
authorizations to spend "proceeds of taxes", which consist of tax revenues, state subventions and certain
other funds, including proceeds from regulatory licenses, user charges or other fees to the extent that such
proceeds exceed "the cost reasonably borne by such entity in providing the regulation, product or
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service," but "proceeds of taxes" excludes tax refunds and some benefit payments such as unemployment
insurance. No limit is imposed on appropriations of funds whicJ1 are not "proceeds of taxes", such as
reasonable user charges or fees, and certain other non-tax funds.
Not included in the Article XIIIB limit are appropriations for the debt service costs of bonds
existing or authorized by January 1, 1979, or subsequently authorized by the voters, appropriations
required to comply with mandates of courts or the federal government and appropriations for qualified
capital outlay projects. The appropriations limit may also be exceeded in certain cases of emergency.
The appropriations limit for the District in each year is based on the District's limit for the prior
year, adjusted annually for changes in the cost of living and changes in population, and adjusted, where
applicable, for transfer of financial responsibility of providing services to or from another un it of
government. The change in the cost of living is, at the District's option, either (1) the percentage change
in State per capita personal income, or (2) the percentage change in the local assessment roll on
nonresidential property. Either test is likely to be greater than the change in the cost of living index,
which was used prior to Proposition 111. Change in population is to be measured either within the
jurisdiction of the District or the County as a whole.
As amended by Proposition 111 , the appropriations limit is tested over consecutive two-year
periods. Any excess of the aggregate "proceeds of taxes'' received by a Djstrict over such two-year
period above the combined appropriations limits for those two years is to be returned to taxpayers by
reductions jn tax rates or fee schedules over the subsequent two years. As originally enacted in 1979, the
District's appropriations limit was based on 1978-79 authorizations to expend proceeds of taxes and was
adjusted annually to reflect changes in cost of living and popuJation (using different definitious, which
were modified by Proposition 111). Starting with Fiscal Year 1990-91, the District's appropriations limit
was recalculated by taking the actual Fiscal Year 1986-87 limit, and applying the annual adjustments as if
Proposition 111 bad been in effect. The District does not anticipate that any such appropriations
limitations will impair its abillty to make its Installment Payments as required by the Installment Purchase
Agreement.
ProposWon 62. On November 4, 1986, State voters approved Proposition 62, which added
Sections 53720 et seq. to the California Government Code which: (i) requires that any tax for general
governmental purposes imposed by local govemmental entities, such as the District, be approved by
resolution or ordinance adopted by a two-thirds vote of the governmental entity's legislative body and by
a majority vote of the electorate of the governmental entity; (ii) requires that any special tax (defined as
taxes levied for other than general governmental purposes) imposed by a local governmental entity be
approved by a two-thirds vote of the voters within that jurisdiction; (iii) restricts the use of revenues from
a special tax to the purposes or for the services for which the special tax was imposed; (iv) prohibits the
imposition of ad valorem taxes on real property by local governmental entities except as permitted by
Article XIIIA; (v) prohibits the imposition of transaction taxes and sales taxes on the sale ofreal property
by local governmental entities; and (vi) requires that any tax imposed by a local governmental entity on
or after August 1, 1985 be ratified by a majority vote of the electorate within two years of the adoption of
the initiative or be terminated by November 15, 1988.
On September 28, 1995, the State Supreme Court, in Santa Clara County Local Transportation
Authority v. Guardino upheld the consritutionality of the portion of Proposition 62 requiring a two-thirds
vote in order for a local government or district to impose a special tax, and by implication upheld a
parallel provision requiring a majority vote in order for a local government or district to impose any
general tax. The District has not imposed any taxes subject to the provisions of Proposition 62 and
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believes that it will not impair its ability to make its Installment Payments as required by the Installment
Purchase Agreement.
Proposition 218. On November 5, 1996, the voters of the State approved Proposition 218, a
constitut ional initiative, entitled the "Right to Vote on Taxes Act" ("Proposition 218"). Proposition 218
adds Articles XIIIC and XlllD to the State Constitutio n and contains a number of interrelated provisions
affecting the ability of local agencies, including the District, to levy and collect both existing and future
taxes, assessments, fees and charges. Proposition 218 became effective on November 6, 1996. Senate
Bill 919 was enacted to provide certain implementing provisions for Proposition 218 and became
effective July l, 1997. The District is unable to predict whether and to what extent Proposition 218 may
be held to be constitutional or how its terms will be interpreted and applied by the comts. Proposition 218
could substantially restrict the District's ability to raise future revenues and could increase the District's
costs to hold elections, calculate fees and assessments, notify the public and defend its fees and
assessments in court. Further, as described below, Proposition 218 provides for broad initiative powers to
reduce or repeal assessments, fees ru1d charges. This initiative power is not limited by the terms of
Proposition 218 to fees imposed after November 6, 1996 and absent other legal authority could result in
retroactive reduction in any existing taxes, assessments or fees and charges, However, other than any
impact resulting from the exercise of this initiative power, presently the District does not believe that the
potential financial impact on the financial condition of the District as a result of the provisions of
Proposition 218 will adversely affect the District's ability to pay the principal of and interest with respect
to the Series 2000 Certificates as and when due.
Article XIIID of Proposition 218 also adds several prov1S1ons affecting "fees" and
"charges" which are defined as "any levy other than an ad valorem tax, a special tax, or an assessment,
imposed by a local government upon a parcel or upon a person as an incident of property ownership,
including a user fee or charge for a property related service." All new and, after June 30, 1998, existing
property related fees and charges must conform to requirements prohibiting, among other things, fees and
charges which (i) generate revenues exceeding the funds required to provide the property related service,
(ii) are used for any purpose other than those for which the fees and charges are imposed, (iii) are for a
service not actually used by, or immediately available to, the owner of the property in question, or (iv) are
used for general governmental services, including police, fire or library services, where the service is
available to the public at large in substantia lly the same manner as it is to property owners. Further,
before any property related fee or charge may be initially imposed or increased, written notice must be
given to the record owner of each parcel of land affected by such fee or charge. The District must then
hold a hearing upon the proposed imposition or increase of such property based fee, and if written
protests against the proposal are presented by a majority of the owners of the identified parcels, the
District may not impose or increase the fee or charge. Moreover, except for fees or charges for sewer,
water and refuse collection services, no property related fee or charge may be imposed or increased
without majority approval by the property owners subject to the fee or charge or, at the option of the local
agency, two-thirds voter approval by the electorate residing in the affected area. The District
implemented a five-year plan beginning in Fiscal Year 1997-98 which provided for gradual increases in
seven of the nine Revenue Areas. Although the District believed that tl1is rate structure was not governed
by Proposition 218, the District noticed the changes pursuant to Proposition 218, held hearings regarding
the proposed user foe increases and did not receive written protests by a majority of the owners of the
affected parnels. Effective July 1, 2000, the District revised its rate structure to allow for the setting of
lower rates in furtherance of its plans to consolidate all Revenue Areas and all fees to a uniform amount.
See "District Revenues -User Fees" herein. The revised rate structure does not replace the rate structure
adopted by the Board in 1997, but sets aside the higher rates until the District determines that they are
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necessary and appropriate. Accordingly, the Proposition 2 l 8 hearing and notice procedures are not
appli cable with regard to the revised rate structure.
Pursuant to the Installment Purchase Agreement, the District will, to the extent permitted by Jaw,
fix, prescribe and collect fees and charges for the services of the Wastewater System which will be at
least sufficient to yield during each Fiscal Year (a) Net Revenues equal to 125% of Debt Service on
Senior Obligations fot such Fiscal Year, and (b) Net Operating Revenues equal to 100% of Debt Servjce
on all Obligations for such Fiscal Year. The District may make adjustments from time to time in such fees
and charges and may make such classification thereof as it deems necessary, but shall not reduce the fees
and charges then in effect unless the Revenues and Net Revenues from such reduced fees and charges
will at all times be sufficient to meet the requirements of the Installment Purchase Agreement. In the
event that service charges are determined to be subject to Article XHID, and proposed increased service
charges cannot be imposed as a result of a majority protest, such circumstances may adversely effect the
ability of the District to generate revenues in the amounts required by the Installment Purchase
Agreement, and to make Installment Payments representing principal and interest with respect to the
Series 2000 Certificates.
VERIFICATION OF ARITHMETICAL AND MATHEMATICAL COMPUTATIONS
Upon delivery of the Series 2000 Certificates, . independent accountants, will deliver
a report on the arithmetical accuracy of certain computations contained in schedules provided to them by
the Underwriter relating to (a) the adequacy of the maturing principal of and interest on certain
obligations and certain other moneys to pay all of the pdncipal and prepayment premium represented by
and the interest due with respect to the Refunded Certificates to be refunded (see "PJan of Refunding,"
herein) as such principal, prepayment premium and interest become due and payable, and (b) the
computations of actuarial yield used by Special Counsel to support its opinion that the Series 2000
Certificates are not arbitrage bonds within the meaning of Section 148 of the Code. has
restricted its procedures to examining the arithmetical accuracy of certain computations and has not made
any study or evaluation of the assumptions and information on which the computations are based and,
accordingly, has not expressed an opinion on the data used, the reasonableness of the assumptions, or the
achievability of the forecasted outcome.
LEGAL MATTERS
The validity of the Series 2000 Certificates and certain other legal matters are subject to the
approving opinion of Orrick, Herrington & Sutcliffe LLP, Los Angeles, California, Special Counsel. A
complete copy of the proposed form of Special Counsel opinion is contained in Appendix E hereto.
Special Counsel undertakes no responsibility for the accuracy, completeness or fairness of this Official
Statement. Certain legal matters will be passed upon for the District by its counsel, Woodruff, Spradlin
and Smart, a Professional Corporation, Orange, California and for the Underwriter by its counsel,
Hawkins, Delafield & Wood, Los Angeles, California.
ABSENCE OF LITIGATION
There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any
court, regulatory agency, public board or body, pending or, to the best knowledge of the District,
threatened against the District affecting the existence of the District or the titles of its directors or officers
to their offices or seeking to restrain or to enjoin the sale or delivery of the Series 2000 Certificates, the
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application of the proceeds thereof in accordance with the Trust Agreement, or in any way contesting or
affecting the validity or enforceability of the Series 2000 Certificates, the Trust Agreement, the
In stallment Purchase Agreement or any action of the District contemplated by any of said documents, or
in any way contesting the completeness or accuracy of this Official Statement, or contesting the powers
of the District or its authority with respect to the Series 2000 Certificates or any action of the District
contemplated by any of said documents, nor, to the knowledge of the District is there any basis therefor.
There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any
court, regulatory agency, public board or body pending or, to the best knowledge of the District,
threatened against the District contesting or affecting the ability of the District to collect amounts from
which Installment Payments are payable, or which would have a material adverse effect on the District,
in cluding the District's ability to make Installment Payments.
FINANCIAL STATEMENTS
The general purpose financial statements of the District included in Appendix A to this OfficiaJ
Statement have been audited by Moreland & Associates, lnc., independent ce1iified public accountants.
See Appendix A-"Audited Combined Financial Statements of the Orange County Sanitation District for
Fiscal Years Ending June 30, 1999 and 1998" herein. The audited financial statements. including the
footnotes thereto, should be reviewed in their entirety. Moreland & Associates, Inc. has not consented to
the inclusion of its report as Appendix A and has not undertaken to update its report or to take any action
intended or likely to elicit information concerning the accuracy, completeness or fairness of the
statements made in this Official Statement, and no opinion is expressed by Moreland & Associates, Inc.
with respect to any event subsequent to its report dated September 10, I 999.
As a result of creating a consolidated entity, inter-district receivables and payables which were
originally reported in the June 30, 1998 and prior audited financial statements, have been eliminated
commencing with the June 30, 1999 audited financial statements. The District utilizes joint operating and
capital outlay accounts to pay joint operating and construction costs of each revenue area. These joint
costs are allocated to each Revenue Area based on the gallons of sewage flow. See Appendix A -
"Audited Combined Financial Statements of the Orange County Sanitation District for Fiscal Years
Ending June 30, 1999 and 1998" herein.
TAX MATTERS
In the opinion of Orrick, Herrington & Sutcliffe LLP, Los Angeles, California, Special CounseJ,
based upon an analysis of existing Jaws, regul ations, rulings and court decisions, and assuming, among
.other matters, compliance with certain covenants, interest evidenced by the Series 2000 Certificates is
excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue
Code of 1986 (the "Code") and is exempt from State personal income taxes. Special Counsel is of the
further opinion that interest evidenced by the Series 2000 Certificates is not a specific preference item for
purposes of the federal individual or corporate alternative minimum taxes, although Special Counsel
observes that such interest is included in adjusted current earnings in calculating corporate alternative
minimum taxable income. A complete copy of the proposed form of opinion of Special Counsel is set
forth in Appendix E hereto.
The Code imposes various restrictions, conditions and requirements relating to the exclusion
from gross income for federal income tax purposes of interest on obligations such as the Series 2000
Certificates. The District has covenanted to comply with certain restrictions designed to insure that
54
3253vl8
interest evidenced by the Series 2000 Certificates will not be included in federal gross income. Failure to
comply with these covenants may result in interest evidenced by the Series 2000 Certificates being
included in gross income for federal income tax purposes, possibly from the date of execution and
delivery of the Series 2000 Certificates. The opinion of Special Counsel assumes compliance with these
covenants. Special Counsel has not undertaken to detellnine (or to inform any person) whether any
actions taken (or not taken) or events occurring (or not occurring) after the date of execution and delivery
of the Series 2000 Certificates may adversely affect the value of, or the tax status of interest evidenced
by, the Series 2000 Cer1ificates. Fu1ther, no assurance can be given that pending or future legislation or
amendments to the Code, if enacted into law, or any proposed legislation or amendments to the Code, will
not adversely affect the value of, or the tax status of interest evidenced by, the Series 2000 Ce1tificates.
Prospective Series 2000 Certificate Owners are urged to consult their OWll tax advisors with respect to
proposals to restructure the federal income tax.
Certain requirements and procedures contained or referred to in the Trust Agreement, the
Installment Purchase Agreement, the Tax Certificate, and other relevant documents may be changed and
certain actions (including, without limitation, defeasance of the Series 2000 Certificates) may be taken or
omitted under the circumstances and subject to the terms and conditions set forth in such documents.
Specia1 Counsel expresses no opinion as to any Series 2000 Certificate or the interest evidenced thereby
if any such change occurs or action is taken or omitted upon the advice or approval of special counsel
other than Orrick, Herrington & Sutcliffe LLP.
Although Special Counsel is of the opinion that interest evidenced by the Series 2000 Certificates
is excluded from gross income for federal income tax purposes and is exempt from State of California
personal income taxes, the ownership or disposition of, or the accrual or receipt of interest ev.idenced by,
the Series 2000 Certificates, may otherwise affect a Series 2000 Certificate Owner's federal or state tax
liability. The nature and extent of these other tax consequences will depend upon the particular tax status
of the Series 2000 Certificate Owner or the Series 2000 Certificate Owner's other i1ems of income or
deduction. Special Counsel expresses no opinion regarding any such other tax consequences.
RATINGS
Moody's Investors Service, Standard & Poor's Ratings Group and Fitch Investors Service, L.P.
have rated the Bonds "_," "_" and ''_," respectively. Such ratings reflect only the views of the rating
agencies, and do not constitute a recommendation to buy, sell or hold the Series 2000 Certificates.
Explanatjon of the significance of such ratings may be obtained only from the respective organizations at:
Moody's Investors Service, 99 Church Street, New York, New York I 0017; Standard & Poor's Ratings
Group, 5 5 Water Street, New York, New York l 0041; and Fitch Investors Service, L. P ., One State Street
Plaza, New York, New York 10004. There is no assurance that any such ratings will continue for any
given period of time or that they wi ll not be revised downward or withdrawn entirely by the respective
rating agencies, if in the judgment of any such rating agency circumstances so warrant. Any such
downward revision or withdrawal of such ratings may have an adverse effect on the market price of the
Series 2000 Certificates.
UNDERWRITING
The Series 2000 Certificates are being purchased by PaineWebber Incorporated (the
''Underwriter"). The Underwriter has agreed, subject to certain conditions, to purchase the Series 2000
Certificates at a price of (which amount represents the principal amount of the Series 2000
55
3253vl8
Certificates Jess an underwriter's discount of ). The Purchase Contracts relating to the
Series 2000 Certificates provide that the Underwriter will purchase all of the Series 2000 Certificates if
any are purchased, the obligation to make such purchase being subject to certain terms and conditions set
forth in the Purchase Contracts, the approval of certain legal matters by counsel and certain other
conditions. The Underwriter may offer and sell the Series 2000 Certificates to certain dealers and others
at prices lower than the offering price stated on the cover page. The offering price may be changed from
time to time by the Underwriter.
MISCELLANEOUS
Included herein are brief summaries of certain documents and reports, which summaries do not
purport to be complete or definitive, and reference is made to such documents and repo11s for full and
complete statements of the contents thereof. Any statements in this Official Statement involving matters
of opinion, whether or not express!),' so stated, are intended as such and not as representations of fact.
This Official Statement is not to be construed as a contract or agreement between the District and the
purchasers or Owners of any of the Series 2000 Certificates.
The execution and delivery of this Official Statement has been duly authorized by the District and
the Corporation.
3253v18
ORANGE COUNTY SANTT A TI ON DISTRICT
FINANCING CORPORATION
President
ORANGE COUNTY SAN1TATION DISTRICT
Chair of the Board of Directors
56
3253vl8
APPENDIX A
AUDITED COMBINED FINANCIAL STATEMENTS
OF THE ORANGE COUNTY SANITATION DISTRICT
FOR FISCAL YEARS ENDING JUNE 30. 1999 AND 1998
A -1
APPENDIXB
THE COUNTY OF ORANGE-ECONOMIC AND DEMOGRAPIDC INFORMATION
B-1
3253vl8
APPENDIXC
SUMMARY OF PRINCIPAL LEGAL DOCUMENTS
C-1
3253v18
APPENDIXD
BOOK-ENTRY SYSTEM
OTC will act as securities depository for the Series 2000 Certificates. The ownership of one or
more fully registered Series 2000 Certificates will be registered in the name of Cede & Co., as nominee
for DTC. DTC is a limited-pllrpose trust company organized under the laws of the State of New York, a
member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York
Uniform Commercial Code and a "clearing agency'' registered pursuant to the provisions of Section 17 A
of the Securities Exchange Act of 1934, as amended. DTC was created to hold securities of its
participants (the "OTC Participants") and to facilitate the clearance and settlement of securities
transactions among DTC Participants through electronic book-entry changes in accounts of the DTC
Participants, thereby eliminating the need for physical movement of securities Series 2000 Certificates.
DTC Participants include securities brokers and dealers, banks, trust companies, clearing corporations
and other organizations, certain of which own DTC either directly or through their representatives.
Access to the DTC system is also available to others such as banks, brokers, dealers and trust companies
that clear through or maintain a custodial relationship with a DTC Participant, either directly or indirectly
(the "Indirect Participants").
Purchases of Series 2000 Certificates under the DTC system may be made through brokers and
dealers who are or act through DTC Participants. Upon such purchase. the DTC Participant will receive a
credit balance on the records of DTC. The Beneficial Owner wiJl be recorded through the records of the
DTC Participant or Indirect Participant. DTC Participants and Indirect Participants are required by OTC
to provide Beneficial Owners with a written confirmation of their purchase containing details of the
Series 2000 Certificates acquired. Transfers of ownership interests in the Series 2000 Certificates will be
accomplished by book entries made by OTC and, in turn, by the DTC Participants who act on behalf of
the Beneficial Owners and Indirect Participants. BENEFICIAL OWNERS WILL NOT RECEIVE
PHYSICAL DELfVERY OF SERIES 2000 CERTIFICATES REPRESENTING THEIR OWNTERSHIP
INTEREST IN THE SERIES 2000 CERTIFICATES AND WILL NOT BE OR CONSIDERED TO BE
OWNERS THEREOF UNDER THE TRUST AGREEMENT FOR PURPOSES OF REGISTRATION
OR PAYMENT OR FOR ANY OTHER PURPOSE.
The Trustee will make payments of principal and premium, if any, and interest with respect to the
Series 2000 Certificates to DTC or its nominee, Cede & Co., as Owner of the Series 2000 Certificates.
The current practice ofDTC is to credit the accounts of the OTC Participants immediately upon receipt of
moneys in accordance with their respective holdings shown on the records of DTC. If appropriate, OTC
Participants w ill forward such payments to 1ndirect Participants. Payments by DTC Participants or
Indirect Participants to Beneficial Owners will be in accordance with standing instructions and customary
practices such as those which are now the case for municipal securities held in bearer form or registered
in ''street name'' for the accounts of customers and will be the responsibility of OTC Participants and
fndirect Participants and not the responsibility of OTC, the Trustee or the Districts, subject to any
statutory and regulatory requirements as may be in effect from time to time.
The Trustee and the District~ so long as a book-entry system is used for the Series 2000
Certificates, will send any notice of prepayment or other notices only to DTC or its nominee. Any failure
of DTC to advise any DTC Participant, or of any DTC Participant or Indirect Participant to notify the
Beneficial Owner, of any such notice and its content or effect will not affect the validity of the
prepayment of such Certificate called for prepayment or of any other action premised on such notice.
prepayment of portions of the Series 2000 Certificates by the District will reduce the outstanding
0-1
3253vl8
principal amount of Series 2000 Certificates held by DTC. In such event, DTC will implement, through
its book-entry system, a prepayment by lot of Series 2000 Certificates held for the account of DTC
Participants in accordance with its own rules or other agreements with DTC Participants and then DTC
Participants and Indirect Participants will implement a prepayment of the Series 2000 Certificates for the
Beneficial Owners. Any such selection of Series 2000 Certificates to be prepaid will not be governed by
the Trust Agreement and will not be conducted by the Distri ct or the Trustee.
NEITHER THE DI STRJCT NOR THE TRUSTEE WILL HA VE ANY RESPONSlBlLfTY OR
OBLIGATION TO DTC PARTICIPANTS OR THE PERSONS FOR WHOM OTC PARTICIPANTS
ACT AS NOMINEES WITH RESPECT TO THE PAYMENTS OR THE PROVIDING OF NOTICE TO
OTC PARTICIPANTS, lNDIRECT PARTICIPANTS OR BENEFlCIAL OWNERS OR THE
SELECTION OF PORTIONS OF THE SERJES 2000 CERTIFICATES FOR PREPAYMENT.
The District and the Trustee cannot give any assurances that OTC, DTC Participants, Indirect
Participants or others w ill distribute payments of principal of, prepayment premium, if any, and interest
with respect to the Series 2000 Certificates paid to DTC or its nominee, as the registered Owner, or any
prepayment or other notice, to the Beneficial Owners or that they will do so on a timely basis or that DTC
will serve and act in a inanner described in this OfficiaJ Statement.
For every transfer and exchange of the Series 2000 Certificates, the Beneficial Owner may be
charged a sum sufficient to cover any tax, fee or other governmental charge that may be imposed in
relation thereto.
DTC (or a successor securities depository) may determine to discontinue providing its service
with respect to the Series 2000 Certifi cates at any time by giving notice to the District and discharging its
responsibilities with respect thereto under applicable law. The District, in their sole discretion and
without the consent of any other person, may terminate the services of DTC (or a successor securities
depository) with respect to the Series 2000 Certifi cates if the District determine that a continuation of the
book-entry system is not in the best intere sts of the Beneficial Owners of the Series 2000 Certificates.
The District undertake no obligation to investigate matters that would enable the District to make such a
determination.
In the event that the book-entry system is discontinued as described above. the requirements of
the Trust Agreement will apply.
D-2
3253v18
APPENDTXE
FORM OF APPROVING OPINION OF SPECIAL COUNSEL
3253vl8
MARCH
s M T w T F
I 2 3
5 6 7 8 9 10
12 13 14 15 16 17
19 20 21 22 23 24
26 27 28 29 30 31
ORANGE COUNTY SANITATION DISTRICT
Series 2000 Refunding COPs
Financing Schedule
APRIL
s s M T w T F s s
4 l
11 2 3 4 5 6 7 8 7
18 9 10 11 12 13 14 15 14
25 16 17 18 19 20 21 22 21
23 24 25 26 27 28 29 28
30
. .JUNE . -JULY
--
s M TW T F s s M T w T F s s
1 2 3 I
4 5 6 7 8 9 10 2 3 4 5 6 7 8 6 II 12 13 14 15 16 17 9 10 11 12 13 14 15 13 18 19 20 21 22 23 24 16 17 18 19 20 21 22 20 25 26 27 28 29 30 23 24 25 26 27 28 29 27 30 31
Date Activity
• l st draft oflnstallment Purchase Agreement distributed Jan 14 x
Jan20 x Kick-off meeting to discuss legal structure
Feb 3 x Review l st draft of ratings presentation and revised cashflows
(9:00 a.m. at District)
Feb. 9 x FAHR Committee meeting (5:00 p.m.)
x Financing progress report
Feb JO x 151 draft of P.O.S. distributed
Feb 14 x 151 draft of Trust Agreement distributed
Feb 17 x Meeting to review legal documents and P.O.S.
(10:00 a.m. at OH&S)
Feb 21 x Market Holiday (President's Day)
Mar8 x FAHR Committee meeting (5:00 p.m.)
x Financing progress report
Paine Webber
June 7, 2000
MAY
M T w T F s
I 2 3 4 5 6
8 9 10 11 12 13
15 16 17 18 19 20 I
22 23 24 25 26 27
29 30 31
AUGUST
M T w T F s
1 2 3 4 5
7 8 9 10 JI 12
14 15 16 17 18 19
21 22 23 24 25 26
28 29 30 31
Responsibility
BC
All-Hands
OCSD, PW
OCSD
OCSD,PW
UC
BC
All-Hands
OCSD
OCSD,PW
June 7, 2000
Mar9 x 2nd draft of legal documents distributed BC
x 2nd draft of P.O.S distributed UC
Mar 14 x Meeting to review legal documents and P.O.S. All-Hands
(10:00 a.m. at OH&S)
Mar20 x Begin preparing package for liquidity banks PW
Mar22 x District Board meeting OCSD, PW
Mar24 x 3•·d draft of P.0.S distributed UC
Week of x Review proposed legal structure with rating analysts PW
Mar27 x Distribute draft legal documents to rating agencies BC, UC
x Commence discussions with Ambac and swap providers PW,BC
x Continue revising rating agency presentation OCSD, PW
Mar28 x Meeting to review legaJ documents and P.0.S. AU-Hands
(10:30 a.m. at OH&S)
Mar JO >: Meeting to review cashflows and ratings presentation OCSD, PW
Apr5 )( Agendize non-profit corporation formation materials OCSD, BC
Apr 6 x Conference call on rating agency presentation (9:00 a.m .) OCSD, PW
Apr 1 I x Meeting to review rating agency presentation (9:00 a.m.) OCSD, PW
Apr/2 x F AHR Committee meeting (5 :00 p.m.) OCSD
x Approval of non-profit Financing Corporation OCSD,BC
x Financing progress report OCSD,PW
x Call with Ambac to discuss amendment process PW
Apr/3 x Rehearsal for rating agency presentations (1 I :00 a,m. P.D.T.) OCSD, PW
Apr 18119 x Ratfug agency presentations (at District) OCSD, PW
Apr21 x Market Holiday (Good Friday)
Apr25 x Call with Ambac to review District credit PW
Apr26 x District Board meeting OCSD
x Approval of non-profit Financing Corporation OCSD
May IO x Receipt oflong-term "indicator" credit ratings OCSD, PW
x FAHR Committee meeting (5:00 p.m.) OCSD
Y. Financing progress report OCSD, PW
May 15 x Conference call on documents (10:00 a.m.) All-Hands
Paine Webber
June 7, 2000
May 17 x Receive liquidity facility provider bids PW
May 19 x Draft amendments to '92 and '93 legal documents circulated BC
May24 x District Board meeting OCSD
May 25 x Select liquidity facility bank for Series 2000 COPs OCSD,PW
May JI x Conference call with Ambac, AIG, and SocGen to review OCSD, PW, BC, AP, APC
proposed amendments
Week of • Begin development of amended swap documents for APC
June5 outstanding 1992 and l 993 CO Ps
Jun 13 • J '1 draft of amendment documents circulated BC,APC
• Liquidity bank receives "home office" credit approval LP
Jun 14 • FAHR Committee meeting (5:00 p.m.) OCSD
Approve Series 2000 liquidity facility provider OCSD
• Approve Series 2000 Trustee selection process OCSD
Jun 15 • Conference call on amendment documents OCSD, PW, BC, AP, APC
• Trustee bank RPP circulated OCSD, PW
Jun 19 • Trustee bids due (noon) OCSD, PW
Select Trustee OCSD,PW
1 si draft of swap documents circulated PW
Jun 20 • 1 '1 draft of Standby Purchase Agreement circulated LPC
Jun 22 • Conference call on bank documents All Hands
• Conference call on swap documents OCSD,PW,BC
Jun27 2"d draft of Standby Purchase Agreement circulated LPC
• 2"d draft of amendment documents circulated BC,APC
Jun28 • District Board meeting OCSD
• Report on Trustee selection OCSD
Jun29 • Conference call on bank and amendment documents All Hands
(review of other documents, as needed)
Jun30 • Draft documents distributed to rating agencies BC, LPC, APC, UC
Jul 4 • Market Holiday (Independence Day)
Jul 5 Draft Phase I & fT COP legals, bank liquidity, swap and OCSD,BC
disclosure documents agendized for F AHR Committee
Jul JO Conference call on bank and amendment documents All Hands
(as needed)
Paine Webber
June 7, 2000
Jul 12 • FAHR Committee meeting (5:00 p.m) OCSD
Approval of all Phase I & II documents OCSD
J1J 14 • Distribute RFP for financial printer OCSD, PW
Jul 16 • Select financial printer OCSD,PW
Jul 17 • Conference call to finalize COP legal, bank liquidity, All Hands
amendment, swap, and disclosure documents
Jul 19 "Substantially final" Phase I & !I legal, bank liquidity, swap, OCSD, BC
and disclosure documents agendized for Board approval
Jul 24 • Receipt of formal long-term and short-term ratings OCSD, PW
Jul 26 • District Board I Financing Corporation meetings OCSD
Approval of all Phase I & II documents OCSD
Jul 27 • Print Official Statement(s) UC,PW,P
Begin pre-marketing 2000 COPs PW
Jul 28 Mai.I Official Statement(s) OC, P
Aug 1 • Price advance refunding component of2000 COPs OCSD, PW
(Execute Series B swap to fix yield through 81l10 I)
• Convert 1992 COPs to daily mode (if necessary) OCSD, BC,T
Aug 15 Price current refunding component of2000 COPs OCSD,PW
(Sold at least 15 days after "Series B" pricing)
Aug 16 • Close all refunding components All-Hands
Convert 1992 COPs to weekly mode (if necessary) OCSD,BC, T
8/1101 Series B COPs called and prepaid from refunding escrow EA
X -Denotes completed activity.
Key Role Participants
OCSD Issuer Orange County Sanitation District
BC Bond Counsel Orrick, Herrington & Sutcliffe
PW Underwriter/Remarketing Agent PaineWebber Incorporated
UC Underwriter's Counsel Hawkins, Delafield & Wood
LP Liquidity Provider Dexia Credit Local de France
LPC Liquidy Provider's Counsel King & Spalding
T Serles 2000 Trustee To be determined
EA Escrow Agent(s) To be determined
AP Amendment Parties Ambac, AIG, SocGen
APC Amendment Parties' Counsel Various
p Financial Printer To be determined
Paine Webber
ROLL CALL
FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE
Meeting Oat~: June 14, 2000 Time: 5:00 p.m.
Adjourn: -----
COMMITTEE MEMBERS
THOMAS R. SALTARELLI (Chair) •••••.••••••.•..•...•..•..••.•••••••••..••••••••.
MARK LEY ES (Vice Chair) ........................................................... .
SHAWN BOYD .............................................................................. .
JOHN M. GULLIXSON .................................................................. .
SHIRLEY MC CRACKEN .............................................................. .
MARK A. MURPHY ........................................................................ .
JAMES W. SILVA .......................................................................... .
JAN DE BAY (Board Chair) ........................................................... .
PEER SWAN (Board Vice Chair) .................................................. .
OTHERS ~
TOM WOODRUFF, General Co~nsel............................................... {; .;Ju_~
TOBY WEISSERT, Carollo Engineers ............................................. __ ~ _ 0
STAFF
BLAKE ANDERSON, General Manager ........................................... ~
DAVID LUDWIN, Director of Engineering .... ~................................. ..,.......
BOB OOTEN, Director of Operations & Maintenance..................... V
LISA TOMKO, Acting Director of Human Resources .................... .
GARY STREED, Director of Finance............................................... ,__---
PATRICK MILES, Director of Information Technology................... ~
ROBERT GHIRELLI, Director of Technical Services...................... 7 ........-
STEVE KOZAK, Financial Manager ................................................ __
MIKE WHITE, Controller .................................................................. __/
GREG MATHEWS, Assistant to the General Manager .................... _;,;;;-_,_
PENNY KYLE, Committee Secretary .............................................. .
c: Lenora Crane
fyv.-cf<_,~
\p(Vt/iA. p v ~ ~~0~ ~w~
06/1 4/2000
Joint Operating History
93-94: Cen Gen started
Advanced Primary 24 hrs/day
0 -t---..~-.---.~-,----,.----.-~r--.-~-r--.-~..,.--.-~-.----.~-.---.~---.-----,.----.-~r--.-~-r---r-~..,.--.-~-.----.~-.---.~-,----,~~
~~~~~~~~#~~~~$~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
I -e-cost I mg -Flow (mgd) -..-Auth Personnel -cost/mg in 67-68 $ -+-value of $100
Jt Oper exp flow pers
,
0610912000
General Manager
Communications
Human Resources
Finance Admin
Accounting
Purchasing & Whse
Total Administration
Oper & Mtce Admin
O&M Process Support
Plant Operations
Air Quality & Research
Plant Mtce
Collection Fae
Mechanical Mtce
Elect & Instr Mtce
Cogeneration
Total Oper & Mtce
Tech Services Admin
Environmental Comp
Laboratories
Source Control
Safety & Emergency
Total Tech Services
Dir of Engineering
Plan & Design Engr
Engineering & lnsp
Total Engineering
Info Tech Admin
IT Customer & Network
IT Programming &DB
Process Control lnteg
Total Information Tech
Budget Comparisons
Two years with similar total flows
1985-86 vs. 2000-01
Authorized Staffing
1985-86 2000-01
Authorized Percent to Authorized Percent to
Personnel Total Auth FT Es Total Auth
4.00 1.0% 3.00 0.6%
8.00 2.0% 9.00 1.8%
5.00 1.2% 10.25 2.0%
4.00 1.0% 4.00 0.8%
12.00 3.0% 15.00 2.9%
11.00 2.7% 17.50 3.4%
44.00 11.0% 58.75 11.5%
2.00 0.5% 2.00 0.4%
5.00 1.2% 9.50 1.9%
95.00 23.7% 71.50 14.0%
1.00 0.2% 10.50 2.1%
45.00 11 .2% 29.50 5.8%
21.00 5.2% 18.50 3.6%
58.00 14.5% 44.50 8.7%
37.00 9.2% 55.50 10.9%
0.0% 9.00 1.8%
264.00 65.8% 250.50 49.1%
0.0% 2.00 0.4%
0.0% 19.00 3.7%
35.00 8.7% 32.00 6.3%
24.00 6.0% 34.00 6.7%
0.0% 7.50 1.5%
59.00 14.7% 94.50 18.5%
6.00 1.5% 3.00 0.6%
15.00 3.7% 33.25 6.5%
13.00 3.2% 37.00 7.3%
34.00 8.5% 73.25 14.4%
0.0% 2.00 0.4%
0.0% 12.00 2.4%
0.0% 10.00 2.0%
0.0% 9.00 1.8%
0.0% 33.00 6.5%
401 .00 100.0% 510.00 100.0%
G:\excel.dta\fin\210\streed\comp with 1986
8:07 AM
2000-01 Increase
FTE Percent to
Iner (Deer) TotalChange
(1 .00) (0.92%)
1.00 0.92%
5.25 4.82%
0.00%
3.00 2.75%
6.50 5.96%
14.75 13.53%
0.00%
4.50 4.13%
(23.50) (21 .56%)
9.50 8.72%
(15.50) (14.22%)
(2.50) (2.29%)
(13.50) (12.39%)
18.50 16.97%
9.00 8.26%
(13.50) (12.39%)
2.00 1.83%
19.00 17.43%
(3.00) (2.75%)
10.00 9.17%
7.50 6.88%
35.50 32.57%
(3.00) (2.75%)
18.25 16.74%
24.00 22.02%
39.25 36.01%
2.00 1.83%
12.00 11.01%
10.00 9.17%
9.00 8.26%
33.00 30.28%
109.00 100.00%
0610912000 10:52 AM
Budget Comparisons
Two years with similar total flows
1985-86 vs. 2000-01
Gross Requirements by Division
1985-86 2000-01 2000-01 Increase Over
Adopted CPI Adj'd Proposed Budget CPI Budget CPI Budget
JO Budget JO Budget JO Budget 1985-86 1985-86 % Iner
General Manager 318,000 484,815 1,767,450 1,449,450 1,282,635 264.56%
Communications 432,000 658,617 902,700 470,700 244,083 37.06%
Human Resources 270,300 412,093 1,495,580 1,225,280 1,083,487 262.92%
Finance Admin 454,700 693,224 1,694,850 1,240,150 1,001 ,626 144.49%
Accounting 489,000 745,517 1,327,350 838,350 581,833 78.04%
Purchasing & Whse 449,000 684,534 1,238,800 789 ,800 554,266 80.97%
Total Administration 2,413,000 3,678,801 8,426,730 6,013,730 4,747,929 129.06%
Oper & Mtce Admin 110,000 167,703 424,500 314,500 256,797 153.13%
O&M Process Support 225,000 343,029 1,080, 100 855, 100 737,071 214.87%
Plant Operations 12,818,800 19,543,229 15,917,500 3,098,700 (3,625, 729) (18.55%)
Air Quality & Research 47,800 72,875 1, 174,600 1, 126,800 1, 101,725 1511 .81%
Plant Mtce 3,640,500 5,550,217 4,034,000 393,500 (1 ,516,217) (27.32%)
Collection Fae 689,600 1,051,347 1,470,950 781 ,350 419,603 39.91%
Mechanical Mtce 3,554,900 5,419,713 5,224,000 1,669, 100 (195,713) (3 61%)
Elect & Instr Mtce 1,884,400 2,872,910 6,469,350 4,584,950 3,596,440 125.18%
Central Generation 2,526,900 2,526,900 2,526,900 no base
Total Oper & Mtce 22,971 ,000 35,021 ,024 38,321 ,900 15,350,900 3,300,876 9.43%
Dir of Tech Services 665,600 665,600 665,600 no base
Environmental Comp 3,589,500 3,589,500 3,589,500 no base
Laboratories 2,762 ,300 4,211 ,335 3,609, 150 846,850 (602, 185) (14.30%)
Source Control 752 ,500 1, 147,243 2,849,250 2,096,750 1,702,007 148.36%
Safety & Emergency 985, 150 985,150 985, 150 no base
Total Tech Services 3,514,800 5,358,578 11,698,650 8,183,850 6,340,072 118.32%
Dir of Engineering 189,400 288,755 463,600 274,200 174,845 60.55%
Plan & Design Engr 635,400 968,715 2,888,300 2,252,900 1,919,585 198.16%
Engineering & lnsp 635,400 968,715 3,485, 100 2,849,700 2,516,385 259.77%
Total Engineering 1,460,200 2,226, 185 6,837,000 5,376,800 4,610,815 207.12%
Info Tech Admin 1,022,300 1,022,300 1,022,300 no base
IT Customer & Network 1,934,600 1,934,600 1,934,600 no base
IT Programming &DB 1,133,000 1, 133,000 1,1 33,000 no base
Process Control lnteg 1,023,070 1,023,070 1,023,070 no base
Total Information Tech 0 0 5, 112,970 5,112,970 5, 112,970 no base
30,359,000 46,284,588 70,397,250 40,038,250 24, 112,662 52.10%
Revenue & Charge Outs (3,584,000) (5,464,079) (24,397,250) (20,813,250) (18,933,171 ) 346.50%
Net Joint Operating Exp 26,775,000 40,820,509 46,000,000 19,225,000 5, 179,491 12.69%
G:\excel.dta\fin\21 O\streed\comp with 1986
Uo/U~/lUUU l"'age ·1 or L.
Budget Comparisons
Two years with similar total flows
1985-86 vs. 2000-01
Line Item Account Comparisons
1985-86 1985-86 Adj'd 2000-01 2000-01 Increase Over % Iner
Adopted for CPI chng Proposed 1985-86 1985-86 1985-86
Budget 170.6/ 111 .9 Budget Budget CPI Budg CPI Budg
1 Salaries & Wages 10,682,000 16,285,516 34,839,700 24,157,700 18,554, 184 113.93%
2 Employee Benefits
3 Retirement 2,071,000 3,157,396 2,400,300 329,300 (757,096) (23.98%)
4 Workers Comp 120,000 182,949 310,200 190,200 127,251 69.56%
5 Unemployment 53,800 53,800 53,800 no base
6 Group Medical Ins 663,000 1,010,794 3,614,500 2,951,500 2,603,706 257.59%
7 Uniform Rental 45,000 68,606 69,200 24,200 594 0.87%
8 Total Benefits 2,899,000 4,419,744 6,448,000 3,549,000 2,028,256 45.89%
9 Total Salaries, Wages & Benefits 13,581,000 20,705,260 41 ,287,700 27,706,700 20,582,440 99.41%
10 Gasoline, Oil & Diesel 265,000 404,013 187,300 (77,700) (216,713) (53.64%)
11 Insurance 291 ,000 443,651 1,200,000 909,000 756,349 170.48%
12 Memberships 18,000 27,442 185,500 167,500 158,058 575.96%
13 Office Expense
14 Supplies 75,000 114,343 141,100 66, 100 26,757 23.40%
15 Other 40,000 60,983 89,300 49,300 28,317 46.43%
16 Computer related 250,000 250,000 250,000 n o base
17 Minor Furniture, Fixtures, etc 87,100 87,100 87,100 n o base
18 Operating Supplies
19 Chlorine & Odor Cntrl 1,650,000 2,515,550 997,800 (652,200) (1,517,750) (60.33%)
20 Sulfide Control 1,425,000 2,172,520 1,435,000 10,000 (737,520) (33.95%)
21 Chemical Coagulants 780,000 1,189,169 1,361,100 581, 100 171,931 14.46%
22 Cen Gen & Other Chemicals 34,000 34,000 34,000 no base
23 Lab Chem & Supplies 100,000 152,458 386,400 286,400 233,942 153.45%
24 Tools 50,000 76,229 120,700 70,700 44,471 58.34%
25 Solvents, Paints, Janitor Sup 125,000 190,572 43,950 (81,050) (146,622) (76.94%)
26 Other Operating Supplies 130,000 198, 195 146,710 16,710 (51,485) (25.98%)
27 Contractual Services
28 Groundskeeping ( & Janitor '00) 30,000 45,737 410,000 380,000 364,263 796.42%
29 Outside Lab Services 50,000 76,229 248,200 198,200 171,971 225.60%
30 Waste Hauling & Gate Fees 980,000 1,494,084 5,000,000 4 ,020,000 3,505,916 234.65%
31 Grit & Sludge Removal 900,000 1,372,118 467, 100 (432,900) (905,018) (65.96%)
32 Oxygen Plant Operations 295,000 295,000 295,000 no base
33 Other Contractual Services 204,000 311,013 801 ,400 597,400 490,387 157.67%
34 Professional Services
35 Legal 105,000 160,080 420,000 315,000 259,920 162.37%
36 Audit & Accounting 25,000 38,114 45,500 20,500 7,386 19.38%
37 Engineering 30,000 45,737 277,500 247,500 231,763 506.73%
38 Plant Security 195,000 195,000 195,000 no base
39 Other Professional Services 55,000 83,852 1,047,500 992,500 963,648 1149.23%
40 Printing & Publications
41 In-House Reproduction 60,000 91,475 254,300 194,300 162,825 178.00%
42 Outside Printing 33,000 50,311 59,450 26,450 9,139 18.17%
43 Photo Processing 10,000 15,246 30,600 20,600 15,354 100.71%
44 Notices & Ads 25,000 38, 114 7,950 (17,050) (30, 164) (79.14%)
G:\excel.dta\fin\21 O\streed\comp with 1986 8:53AM
06/09/2000 Page 2 of 2
Budget Comparisons
Two years with similar total flows
1985-86 vs. 2000-01
Line Item Account Comparisons
1985-86 1985-86 Adj'd 2000-01 2000-01 Increase Over % Iner
Adopted for CPI chng Proposed 1985-86 1985-86 1985-86
Budget 170.6 / 111.9 Budget Budget CPI Budg CPI Budg
45 Rents & Leases
46 Outside Equipment Rent 65,000 99,097 146,180 81, 180 47,083 47.51%
47 District Equipment 75,000 114,343 322,000 247,000 207,657 181.61%
48 Repairs & Maintenance
49 Materials, Services, Supplies 1,750,000 2,668,007 3,904,050 2, 154,050 1,236,043 46.33%
50 Service Contracts 40,000 60,983 1,383,450 1,343,450 1,322,467 2168.58%
51 Research & Monitoring
52 Ocean Sample 1,500,000 2,286,863 10,000 (1,490,000) (2,276,863) (99.56%)
53 Ocean Research 165,000 251,555 550,500 385,500 298,945 118.84%
54 Industrial Waste Research 10,000 15,246 (10,000) (15,246) (100.00%)
55 Operational Research 15,000 22,869 (15,000) (22,869) (100.00%)
56 Environmental Research 1,500,000 1,500,000 1,500,000 no base
57 Air Quality Monitoring 75,000 75,000 75,000 n o base
58 Travel, Meetings & Training 55,000 83,852 901,850 846,850 817,998 975.53%
59 Utilities
60 Diesel for Generators 225,000 343,029 11 ,000 (214,000) (332,029) (96.79%)
61 Power 4,500,000 6,860,590 921,500 (3,578,500) (5,939,090) (86.57%)
62 Natural Gas 620,000 945,237 1,130,000 510,000 184,763 19.55%
63 Telephone 70,000 106,720 251,850 181,850 145,130 135.99%
64 Water 65,000 99,097 830,900 765,900 731,803 738.47%
65 Other Expenses
66 Freight 30,000 45,737 52,560 22,560 6,823 14.92%
67 General 80,000 121,966 169,000 89,000 47,034 38.56%
68 AQMD Fees 120,000 120,000 120,000 no base
69 Prior Years Exp/ Reappropriations 50,000 76,229 220,000 170,000 143,771 188.60%
70 General Manager's Contingency 340,000 340,000 340,000 no base
71 Uncollectable Accounts 2,000 3,049 (2,000) {3,049) (100.00%)
72 Non-Operating Expenses 5,000 7,623 44,250 39,250 36,627 480.49%
73 Total Materials, Supplies & Serv 16,778,000 25,579,328 29,109,550 12,331,550 3,530,222 13.80%
74 Total Gross Jt Oper Expenses 30,359,000 46,284,588 70,397,250 40,038,250 24,112,662 52.10%
75 Charge Outs and Cost Allee (2,686,000) (4,095,010) (19,906,600) (17,220,600) (15,811 ,590) 386.12%
76 Revenues (898,000) (1 ,369,069) (4,490,650) (3,592,650) (3,121,581) 228.01%
77 Net Joint Operating Expenses 26,775,000 40,820,509 46,000,000 19,225,000 5,179,491 12.69%
Cost per Million Gallons 304 464 514 50 10.85%
Cost per Employee:
Salaries & Wages 26,638 40,612 68,313 27,701 68.21%
Employee Benefits 7,229 11,022 12,643 1,621 14.71%
Other Expenses 41 ,840 63,789 57,078 (6,711) (10.52%)
Total 75;708 115,423 138,034 22,611 19.59%
G:\excel.dta\fin\21 O\streed\comp with 1986 8:53 AM
FAHR COMMITTEE Meeting Date To Bd. of Dir.
06/14/00 06/28/00
AGENDA REPORT Item Number 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 MAY 2000
GENERAL MANAGER'S RECOMMENDATION
Receive and file Treasurer's Report for the month of May 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.
~ Not applicable (information item)
llradon1Da1a11wp.dlalfinl2101cranelFAHRIFahr2000\Jun\Treasurer's RepOrt ·June.doc
Revised: 6/20198 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 May 19, the sum of $13 million was received from the Orange County Tax
Collector's property tax allocation cycle, and was deposited in the District's Liquid
Operating Monies 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-term 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
llradoo\data1\wp.dta\fin\210\crane\FAHR\Fahr2000\Jun\Treasure(s Report -June, doc
Revised: 8120198
Book Balances Estimated
May 31, 2000 Yield(%)
$ 23,321,844 6.2
883,538 --
2,422,000 5.6
32,875,042 6.0
349,532,557 5.3
2,044 5.9
32,157,723 6.7
8,000 --
$441,202,748
Page 2
Prepared by Finance, 06/12/2000, 9:58 AM
Monthly Treasurer's Report
District Fund Balances
$450,000,000 -r-----------------------------------.
$400,000,000 r------------~~y---~~~---~~~--~
$350,000,000 --
$150,000,000 +--tl00<."X)(]l----b(X'X)()<1-----IX..X)000------f'X'L':~----000<X*----O<X>C>04----I
$100' 000' 000 +--tl00<."X)(]l-----tx'XX)()<1-----IX..X)OCXJ-----f'X'L':~----0000<*----0<X)C>Of---I
$50, 000, 000 ~--t>60~]----1>666<'.'.X1------PQQ'.~l----~'>66.~----(><X>004-----0000<:>4-~
Dec, 99 Jan, 00 Feb,00
eJ PIMCO -Long-term
~Debt Service Reserves ra Bank Accts
1i!1 Dist 11 GO Bond Fund
G:\excel.dta\fin\2220\geggi\Finance\monthly treasurers report
Mar, oo
Ill PIMCO -Short-term
Cll LAIF
DPetty Cash
Apr, 00 May, 00
MONTHLY REPORT
ORANGE COUNTY SANITATION DISTRICT
INVESTMENT MANAGEMENT PROGRAM
PIMCO'S PERFORMANCE MONITORING & REPORTING
(for the month ending 31 May2000)
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.l.2 MODIFIED DURATION Of Portfolio:
Oflndex:
15.1.3 1 % INTEREST RA TE CHANGE Dollar Impact (gain/loss) of l % Change:
15.1.4 REVERSE REPOS % of Portfolio in Reverse Repos:
(see attached schedule)
15.1.5 PORTFOLIO MATURITY % of Portfolio Maturing within 90 days:
15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality:
15.1.7 SECURITIES BELOW "A" RATING % of Portfolio Below "A":
15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance"
15.1.9 PORTFOLIO PERFORMANCE Total Rate of Return(%) by
Period:
1 Month:
3 Months:
12 Months:
Year-to-Date:
Commentary
$32,871,033
$32,875,042
$32,904,880
$32,904,670
0.27
0.20
$89,413
0%
62%
"AA+"
See Note
See Note
Portfolio
0.52
1.53
5.75
2.58
Interest rates at the short-end of the yield curve fell io May (three-month T-Bills down 20 basis points to 5.61 %), while the long-end posted increases (30-year Treasuries up 4 b:isls points to 6.00%)
• The Liquid portfolio outperfom1ed its benchmark by 3 basis points in May.
PIMC<>"s emphasis on con1111ercinl paper slightly enhanced returns.
• NOTE. On March 31 u, S&P down&radcd Finvoa Capital Corp from A· to BBB+ with n Stable Outlook. dut to the pnnint company's (Finovn Group, Inc) iU1111>un,ement of n spccinl nccounting chorg,c to
eomi11gs. A Fl nova Cupital Coqmrate Nute, $4 75,000 par amount, 6.375% coupon. maturing on October IS, 2000, IS held in the Liquid 01Nrntlng Monies portfolio The note comprises about 2 4% of the
nearly $20 million portfolio. PIMCO's credit team has anntyzcd the Finovn credit und reported on April 27'h: "Our credit 1erun is so1isfic:d to ti lnrgc degree that there is uot a systemic problem with the
Company's loan hook. Our recommcndalion is that we continue to hold this se~urity." The FAHR Commiltce concurred with this recommendation at their May l 0, 1000 meeting.
H:I.. V"lNANCEI !REVISED UQOSOO.RPT
Index
0.49
1.44
5.21
2.32
MONTHLY REPORT
ORANGE COUNTY SANITATION DISTRICT
INVESTMENT MANAGEMENT PROGRAM
PIMCO'S PERFORMANCE MONITORING & REPORTING
(for the month ending 3 I May 2000)
Lo11g-Term Operati11g Monies (203)
15.J.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 I% Change:
15.1.4 REVERSE REPOS % of Portfolio in Reverse Repos:
(see attached schedule)
15.1.5 PORTFOLIO MATURITY % of Portfolio Maturing within 90 days:
15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality:
15.1.7 SECURITIES BELOW "A'' RATING % of Portfolio Below "A":
15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance"
15.1.9 PORTFOLIO PERFORMANCE Total Rate of Return(%) by
Period:
I Month:
3 Months:
12 Months:
Year-to-Date:
Commentary
$349,366,952
$349,532,557
$351,644,731
$352,937,072
2.07
2.22
$7,318,667
0%
40%
"AA+"
0%
Yes
Portfolio Index
0.31 0.30
1.57 1.14
4.21 3.50
2.21 1.64
• WhiJe short-end yields (I-year and less) fell during May (90-day T-Bills down 20 bosrs points 10 5,61°~). yields on longer maturities also declined slightly (5-yearTreasury Notes down 2 bosis points to 6.52%}.
The Long-Term portfolio outperformed its benchmark by I basis points in May.
PfMCO's decision LO underweight corporate notes added slightly to portfolio returns, as corporates underperformed other sectors.
PIMCO's emphasis on mortgage securities added to relative returns.
H:I IF/NANCE:ll/Oi Vl£VISFD L-TOJOO./li'T
@ ORANGE COUNTY SANITATION DISTRICT PAGE: I
BASE: USD
NET ASSET SECTOR SUMMARY
OCSF075/J 102 31-MAY-2000 FINAL
I IQlllD OPER-f'JMCO
%OF UNREALIZED
PORTFOLIO DISTRIBUTION COST MARKET VALUE TOTAL GAlN/LOSS
CASH & CASH EQUIVALENTS
UNITED STATES
COMMERCIAL PAPER-DISCOUNT 4,848,821 .50 4,848,821.50 14.64% 0.00
FEDERAL HOME LOAN MORTGAGE -LESS 4,949,916.94 4.949,916.94 14.95% 0.00
FNMA ISSUES -LESS THAN !YR 2,289,048.74 2,290,235.77 6.92% 1,187.03
FED HM LOAN BNK -LESS THAN I YR 6,556,504.30 6,556,504.30 19.80% 0.00
MUTUAL FUNDS 146,353.81 146,353.81 0.44% 0.00
TOT AL UNJTED STATES 18, 790.645.29 18,791.832.32 56,74% l,187.03
TOTAL CASB & CASH EQUIVALENTS 18, 790,645.29 LS, 791,832.32 56.74 % J,187.03
FIXED INCOME SECURlTlES
UNITED STATES
U.S. GOVERNMENTS 6,526, 78 1.25 6,538,092.00 19.74% ] 1,310.75
ABS: CAR LOAN 905,9JJ.OO 899,667.00 2.72% -6,246.00
BANK.ING & FINANCE 3.644,885.30 3,634,845.85 10.98% -10,039.45
INDUSTRIAL 2,028,520.00 2,009,820.00 6.07% -18, 700.00
UTILITY -GAS 495,845.00 495,445.00 1.50% -400.00
UTfLITY -TELEPHONE 512,080.00 505,340.00 l.53% -6,740.00
TOT AL UNITED ST ATES 14,11 4,024.SS 14,083,209.85 42.53% -30,814.70
TOTAL FIXED INCOME SECURITIES 14,114,024.55 14,083,209.85 42.53% -30,814.70
OTHER PORTFOLIO ASSETS
PAY ABLES/RECEIVABLES 241,991.53 241,991.53 Oc73% 0.00
TOTAL 241,991.53 241 ,991.53 0.73% 0.00
TOT AL OTHER PORTFOLIO ASSETS 241,991.53 241.991.53 0.73% 0.00
NET PORTFOLIO ASSETS 33,146,661.37 33,117,033.70 100.00% -29,627.67
/ 2-J1111·lOOO 10:22:20 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE'.
BASE: USD
NET ASSET SECTOR SUMMARY
OCSF07522202 31-MAY-2000 FINAL
LONG TERM OPER-PIMCO
%OF UNREALIZED
PORTFOLIO DISTRIBUllON COST MARKET VALUE TOTAL GAlN/LOSS
CASH & CASlI EQUIVALENTS
RECEIVABLES 51,036,25 51,036.25 0.01% 0.00
PAYABLES -27,420, 156.25 -27,420,156.25 -7,75% 0 00
TOTAL -27,369,120.00 -27,369, 120.00 -7.74% 0.00
UNITED STA TES
COMMERCIAL PAPER -D1SCOUNT 48,083,347.10 48,083,347.10 13.59% 0.00
FEDERAL HOME LOAN MORTGAGE -LESS 2,673,409.50 2,673,409.50 0.76% 0.00
FNMA ISSUES -LESS THAN lYR 6,818,176.22 6,818, t 76.22 1.93% 0.00
BSDT RESERVE DEPOSIT ACCOUNTS 31,740.00 31,740.00 0.01% 0.00
MUTUAL FUNDS 433,316.11 433,316.11 0.12% 0,00
TOTAL UNITED STATES 58,039,9,88.93 58,039,988.93 16.41% 0.00
TOT A;L CASH & CASH EQUIVALENTS 30,670,868.93 30,670,868.93 8.67% 0.00
FIXED lNCOME SECURITIES
UNITED STATES
U.S. GOVERNMENTS 98,918,752.17 98,220,880.38 27.77% -697,871.79
U.S. AGENCIES 56,366,226.47 55,285, 182.11 15.63% -1,081,044.36
GNMA SINGLE FAMILY POOLS 25,422,656.25 25,782,040.00 7.29% 359,383.75
GNMA MULTIFAMILY POOLS 14,498,611.93 14,362,535.13 4.06% -136,076.80
FHLMCPOOLS 8,875,097.70 8,653,838.72 2.45% -221,258.98
FHLMC MULTlCLASS 7' 725,563 .83 7,500,040.62 2.12% -225,523.21
ASSET BACKED SECURITIES 31,443.56 31,364.96 0.01% -78.60
ABS: HOME EQUITY 327,443.78 325,701.78 0.09% -1,742.00
OTHER GOVERNMENT OB LT GA HONS 2,667,485.38 2,658,365.50 0.75% -9.119.88
MUTUAL FUNDS 1,000,000.00 987,850.00 0.28% -12,150.00
BANKING & FINANCE 76,413,398.3 J 75,858,083.88 21.45% -555,314.43
INDUSTRIAL 7,126,189.00 6,760,657.15 L91% -365.531.85
UTILITY -ELECTRIC 8,096,080.00 7,842,440.00 2.22% -253,640.00
UTILITY -GAS 7,300,000.00 7,294,233.00 2.06% -5,767.00
UTILITY -TELEPHONE 7,497,255.00 7,298,475.00 2.06% -198,780.00
TOT AL UNITED ST A TES 322,266,203.38 318,861,688.23 90.15% -3,404,515.15
12-Jun-2000 10:23:./8 Executive Workbench
II
OCSF07522202
LONG TERM OPER-PIMCO
PORTFOLIO DISTRIBUTION
TOTAL FlXED INCOME SECURITIES
OTHER PORTFOLIO ASSETS
PAYABLES/RECEIVABLES
TOTAL
TOTAL OTHER PORTFOLIO ASSETS
NET PORTFOLIO ASSETS
12-Jun-2000 10:23:48
ORANGE COUNTY SANITATION DISTRICT
NET ASSET SECTOR SUMMARY
31 -MAY-2000
COST MARKET VALUE
322,266,203.38 318,861,688.23
4,160,737.45 4,160,737.45
4,160,737.45 4,160,737.45
4,160,737.45 4,160,737.45
357,097,809.76 353,693,294.61
%OF
TOTAL
90.15%
Ll8%
1.18%
1.18%
100.00%
PAGE: 2
BASE: USD
FINAL
UNREALIZED
GAIN/LOSS
-3,404,515.15
0.00
0.00
0.00
-3,404,515.] 5
Executive Workbench
YLOANAL YIELD ANALYSIS PAGE l
OCSF07511102 2000/05/31 RUN DATE I 06/06/00
DISTRICT: LIQUID OPERATING RUN TIME 10.38.36
PAR VALUE YTM AT CUR.RENT MOODY MARKET TOTAL COST/ % TYPE
SECURITY ID SECURITY DESCRIPTION BOO!'\ YIELD S-1' PRICE MARKET VALUE % TOTAL ------------------------------------------~--------------------------------------
CASH & CASH EQUIVALENTS
146,353.81 DREYFUS TREASURY CASH MGMT .ooo 5.991 AAA 100.000 146,353.81 ,77
996085247 AAA 146,353.81 .45
2,soo,000.00 FEDERAL HOME LN MTG CORP DISC 6.082 .ooo P-1 99.063 2,476,569.44 13.17
313396YJ6 MAT 06/20/2000 A-1+ 2,476,569.44 7.53
900,000.00 GENERAL ELEC CAP DISC 6.109 .000 P-1 98.710 888,392.7.5 4. 72
36959HFU6 06/28/2000 888,392.25 2. 70
600,000.00 FEDERAL NATL MTG ASSN DISC NTS 6 .110 .000 P-1 99.025 594, 151.67 3.16
313588YD1 MAT 06/15/99 A-1+ 594,151.67 1. 81
900,000.00 NATIONAL RURALDISC 6.293 .ooo P-1 98.519 886,670.00 4. 71
63743CG56 07/05/2000 886,670.00 2.70
1,600,000.00 FEDERAL HOME LN BK CONS DISC N 6.346 .000 P-1 99. 596 1,593,539.56 8.47
313384YE3 MAT 06/16/2000 A-1+ 1,593,539.56 4.85
2,200,000.00 FEDERAL HOME LN BK CONS DISC 6. 356 .000 P-1 99.596 2,191,102.84 11.65
313384YD5 MAT 06/15/2000 A-1+ 2,191,102.84 6.66
1,000,000.00 FEDERAL HOME LN MTG COIU' DISC 6.418 .ooo P-l 99.257 992,568.33 5.28
313396YT4 MAT 06/29/2000 A-1+ 992,568.33 3.02
sos,000.00 FEDERAL NATL MTG ASSN DISC NT 6.565 .ooo AAA 99.242 499,985.07 2.66
3135118ZH1 MAT 07/13/2000 AAA 501,172.10 1. 52
600,000.00 UBS FIN DEL INC DISC 6.584 .ooo P-1 99.491 596,943.33 3.17
90262CFK8 06/19/2000 596,943.33 1.82
500,000.00 HEINZ H J CO DISC 6.599 .ooo P-1 99 .110 495,549.17 2.63
4i307JGA2 07/10/2000 495,549.17 1. 51
2,809,000,00 FEDERAL NATL MTG ASSN I DISC NTS 6.607 .ooo P-1 98.678 2, 771,861.90 14 .75
3l3588A62 MAT 08/03/2000 A-1+ 2,771,861.90 8.43
1,100,000.00 BECTON DI CKINSON DISC 6.629 .000 P-1 99.106 1,090,163 .25 5.80
07588RGA7 07/10/2000 I 1 ,090,163.25 3. 32
900,000.00 GOLDMAN SACHS LP orsc 6.656 .000 P-1 99.012 891, 103.50 4. 74
38142TGH2 0717/2000 891,103,50 2.71
YLDANAL YIELD ANALYSIS PAGE 2
OCSF07511102 2000/05/31 RUN DATE 06/06/00
DISTRICT: LIQUID OPER,A1'ING RUN TIME 10.38.36
=====~========= ==-=-==-==~
PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE
SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MJ\.IU\ET VALUE % TOTAL
--~---------------------------------------------------------------------________ ,..._
1,200,000.00 FEDERAL NATL MTG ASSN DISC 6. 665 .. ooo .P-1 99.576 1,194,912.00 6.35
313588YA7 MAT 06/12/2000 A-1+ 1,194,912.00 3.63
1,soo,000.00 FEDERAL HOME LN MTG CRP DISC N 6.676 .ooo P-1 98.119 1,480,779.17 7 .87
313396A45 MAT 08/01/2000 A-1+ l, 480, 779 .17 4.50
----------------------~----------
TOTAL CASH & CASH EQUIVALENTS 6.219 .091 18,790,645.29 100.00
18,791,832.32 57.16
FIXED lNCOME SECUR1T1ES
6,600,000.00 U S TREASURY NOTES 5.205 4.038 AAA 99.062 6,526,781.25 46.42
91282HT6 04.000\ 10/31/2000 DO 10/31/98 AAA 6,538,092.00 19.89
475,000.00 ASSOCIArES CORP NORTH AMER 6. 296 6.001 AA3 99.988 474,273.25 3.37
046003EL9 6 .000% 06/15/2000 A+ 474, 943. 00 1.44
900,000.00 FORD MTR CR MTN t TR 00538 6.312 7 .023 A2 99.963 905,913.00 6.38
J45402YK1 7.020\ 10/10/2000 DD 10/10/95 A 899,667.00 2. 74
400,000.00 LERMAN BROS HLDGS MTN TR 00252 6.353 6.415 Al 99 ,773 400,216.00 2.83
52517PLkl 6.400% 08/30/2000 DD 09/26/97 A 399,092.00 1. 21
900,000 .00 GENERAL MTRS CORP NTS 6.425 9.52) A2 101. 067 n1,060.oo 6.45
370442AH8 9 .625% 12/01/2000 DD 12/01/90 A 909,603.00 2.77
150,000.00 MORGAN J P & CO MTN SR 00043 6 .430 6 .140 Al 99.750 149,625.00 1. 06
61687YBUO 6.125% 10/02/2000 DD 10/02/97 AA 149,625 .00 .46
600,000.00 SEARS ROEBUCK ACCEP CORP NT 6 .574 6.501 A3 99.987 599,760.00 4.25
812404AE1 6.500\ 06/15/2000 DD 06/13/95 A-599,922.00 1. 82
500,000.00 BURLINGTON RES INC NT 6.578 9 .619 A3 100.059 505,900.00 3.55
122014AB9 9.625% 06/15/2000 DD 06/28/90 A-500,295.00 1.52
soo,000.00 GTE CORP DEB 6.669 9.276 BAAl 101. 068 512,080.00 3.58
362320AQ6 9.375% 12/01/2000 A 505,340.00 1.54
475,000.00 FINOVA CAP CORP 6.820 6.505 BAA2 97.999 473,031.25 3.30
3180741\?8 6.375% 10/15/2000 DD 10/11/95 BBB+ 465,495.25 1.42
175,000.00 CIT GROUP HLDGS MTN t SR 00010 6.862 5.703 Al 98.635 173,383.00 l. 22
12560QAK5 5.625% 02/02/2001 DO 02/02/96 A+ .172,611.25 .53
YLDANAL
OCSF07511102
DISTRICT: LIQUID OPERATING
PAR VALUE
SECURITY ID SECURITY DESCRIPTION ---------------------------·
500,000.00 UGI UTILS INC MTN fTR 00006
90269QAF6 6.170% 03/06/2001 DD 03/06/98
575,000.00 FCC NATL BK DE MTN t TR 00284
30241NMV4 6.375% 03/15/2001 DD 03/14/96
4201000.00 BANI<AMERICA CORP SR NT
066050CJ2 6.650% 05/01/2001 DD 05/01/96
1,0001000.00 DONALDSON LUFKIN & JEN TROOOll
25766CAL8 6.110\ 05/15/2001 OD 05/27/98
TOTAL FIXED INCOME SECURITIES
TOTAL
YIELD ANALYSIS
2000/05/31
YTM AT CURRENT MOODY MARKET
BOOK YIELD S-P PRICE
6.899 6.227 A3 99.089
A-
7.426 6.427 AA2 99.185
AA-
7 .441 6.702 AA2 99.218
A+
7.530 6.196 A3 98.605
A-
-------------
5.690 5.282
5.954 2.688
PAGE
RUN DATE
RUN TIME
TOTAL COST/
MARKET VALUE
495,845.00
495,445.00
570,262.00
570,313.75
417,034.80
416,715.60
987,060.00
986,050.00
14,114,024.55
14,083,209.85
32,904,669.84
32,875,042.17
=
3
06/06/00
10.38.36
% TYPE
% TOTAL
3.51
l.51
4.04
1. 73
2.95
1.2.7
7.00
3.00
100.00
42.85
100.00
100.00
YLDANAL YIELD ANALYSIS PAGE 4
OCSF07522202 2000/05/31 RUN DATE I 06/06/00
DlSTRICT: LONG-TERM OPERATING RUN TIME 10.38.36
PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ ' TYPE
SECURITY IO SECURITY DESCRIPTION DOOK YIELD s -P PRICE MAR.KET VA.LOE ' TOTAL --------------------------------------------------------------------------------------
CASO & CASH EQUIVALENTS
433, 316. ll DREYFUS TREASURY CASH MGMT .ooo 5.991 AAA 100.000 433 ,316.11 .74
996085247 AKA 433,316.11 .ll
31, 740.00 BSDT-LATE MONEY DEPOSIT ACCT .ooo .500 100.000 31,740.00 .05
996087094 31,740.00 .01
4, 400., 000. 00 FEDERAL NATL MTG ASSN DISC NTS 6.029 .000 P-1 98.858 4,349,737.33 7.49
313588YD1 JotA.T 06/15/99 A-1+ 4,349,737.33 1..15
600,000.00 USAA CAP CORP DISC 6.054 .ooo P-1 98.607 591,642.oo l.OJ.
90328AF65 06/06/2000 591,642.00 .16
2,500,000.00 FEDERAL NATL MTG ASSN DISCOUNT 6.056 .ooo P-.l 98.738 2,468,438.89 4.25
313588YL3 MAT 06/22/2000 A-1+ 2,468,438.89 .65
3,300,000.00 PROCTER & GAMBLE DISC 6.086 .000 P-1 98.913 3,264,130.83 5.62
74271RFE2 06/14/2000 3,264,130.83 .87
5,200,000.00 GMAC DISC 6 .087 .ooo P-1 98.797 5,137,451.83 8.85
37042DFU2 06/28/2000 5,137,451.83 1. 36
10,400,000.00 HEINZ H J CO DISC 6.101 .ooo P-1 99.160 10,312,611.11 17.76
42307JF62 06/06/2000 10,312,611.11 2.74
400,000.00 MONSANTO CO DISC 6.157 .000 P-1 98.584 394,334.67 .67
6116611FE4 06/14/2000 394,334.67 .l,O
2,100,000 .00 FEDERAL HOME LN MTG CORP DISC 6.282 .ooo P-1 99.015 2,673,409.50 4 .60
313396YR8 MAT 06/27/2000 A-1+ 2,673,409.50 .71
i,000,000.00 MOTOROLA CR CO DISC 6.297 .000 P-1 99 .253 992,534.72 l. 71
62oonF07 06/13/2000 992,534.72 .26
5 1 600,000.00 ABBOTT LABS DISC 6.5ll .000 P-1 99. 371 5,564,774.44 9.58
00282AFWl 06/30/2000 5,564,774.44 1. 48
6,200,000.00 HEINZ H J co DISC 6.606 .ooo P-1 99.001 6,138,051.67 10.57
42307JGKO 07 /19/2000 6,138,051.67 l.63
1,aoo,000.00 GENERAL ELEC CAP DISC 6 .606 .ooo P-1 99.145 7,733,299.17 13.32
36959HG50 07/05/2000 7,733,299.17 2.05
YLDANAL YIELD ANALYSIS PAGE 5
OCSF07522202 2000/05/31 RUN DATE 06/06/00
DISTRICT: LONG-TERM OPERATING RUN TIME 10.38.36
~~===·==-====.::.---=~~ --------------------===
PAR VALUE YTM AT CURRENT MOODY MARJ<ET TOTAL COST/ \ TYPE
SECURITY IO SECURITY DESCRIPTION BOOK YIELD S-P PRICE MAR.KET VALUE \ TOTAL --------------------------------------------------------------------------
e,000,000.00 UBS FIN DEL INC DISC 7.352 .000 P-1 99.431 7,954,516.66 13.70
90262CFF9 06/15/2000 7,954,516.66 2 .11
-----------------------------~ -----TOTAL CASH & CASH EQUIVALENTS 6.075 .113 58,039,988.93 100.00
58,039,988.93 15.39
FIXED INCOME SECURITIES
328,434 .20 FHLMC GROUP J78-6064 .ooo 6.447 AAA 99.016 320,428.62 .10
31348SWZ3 6.384\ 01/01/2028 DD 12/01/97 AAA 325,202.41 .09
1,250,123.41 Gm.IA II POOL #0080395 .ooo 6.609 AAA 98.344 1,238,794.16 .38
3622SCNMA 6.500% 04/20/2030 DD 04/01/00 AAA 1,229,418.24 .33
10,001,000.00 GNMA II POOL J080408X .ooo 6.609 AAA 98.344 9,899,427.34 3.08
36225CN28 6 .500% 05/20/2030 DD 05/01/00 AAA 9,835,358.44 2 .61
8,758,092.00 US TREASURY INFLATION INDEX NT 3. 716 3 .655 AAA 99 .172 8,728,672.19 2.72
9128273A8 3.625% 07/15/2002 DD 07/15/97 AAA 8,685,575.00 2.30
24,831,950.00 US TREASURY INFLATION INDEX NT 3.825 3,543 A.AA 95.250 23,985,126.16 7.41
9128272M3 3 .375% 01/15/2007 DD Ol/l.5/97 AAA 23,652,432.38 6.28
1,016,700.00 US TREASURY I NFLATION INDEX NT 4 .337 4.225 AAA 100.594 1,009,620.00 .32
9128275WB 4.250i00\/15/2010 DD 01/15/00 AAA 1,022,739.20 .27
1,865,856.90 SALOMON SMITH BARNEY BLDGS INF 4 .613 3.727 AA3 97,944 1,831,956.11 .57
79549BBG1 3.650% 02/14/2002 DD 02/14/97 A 1,827,494.88 .48
2,100,000.00 U S TREASURY NOTES 5 .117 6.410 "AAA 99.453 2,167,321.15 .65
912827ZS4 06.375% 09/30/2001 DD 09/30/96 AAA 2,088,513.00 .SS
4,000,000.00 MORGAN STANLEY MTN iTR 00299 I 5.480 5.463 AA3 99.937 3,997,788.00 1.25
61745ENL1 FLTG RT 04/15/2002 DD 04/15/99 A+ 3,997,480.00 1. 06
l,SOo,000.00 ASSOCIATES CORP N A SR NTS 5.650 6 .658 AAJ 97.621 l,543,215.00 .45
046003HY8 6.500% 07/15/2002 DD 07 /11/97 A+ 1,464,315.00 .39
I
3,950,000 .00 GMAC NTS 5.752 6 .835 A2 l.00.38tr 3,918,768.50 1..24
370425QVS FLTG RT 08/18/2003 DD 08/17/98 A 3,965,326.00 1.05
l ,000,000.00 BELLER FINANCIAL INC NTS 5.760 5,929 A3 96.980 999,730.00 .30
42333HKJO 5.750% 09/25/2001 DD 09/25/98 A-969,800.00 .26
YLDANAL YIELD ANALYSIS PAGE 6
OCSF07522202 2000/05/31. RON DATE 06/06/00
DISTRICT: LONG-TERM OPERATING RUN TIM.E 10.38.36
-=:==-=-===========-===--=
PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE
SECURITY ID SECURITY DESCRll'TION BOOK YIELD S-P PRICE MARKET VALUE % TOTAT. -----------------------------------------------------------------------------------
1,000,000.00 HOUSEHOLD FIN MTN SR #00570 5. 775 5.697 A2 100.823 999,188.90 .31
44181KZT4 FLTG RT 08/01/2001 DD 09/04/98 A 1,008,230.00 .27
2,0051000.00 SEARS ROEBUCl< ACCEP CORP MTN 5.804 6.788 AJ 96.343 2,060,739.00 .60
81240QGW6 6,540% 02/20/2003 DD 02/20/97 A-1,931,677.15 .51
23,430,000.00 U S TREASURY NOTES 5.807 5.710 AAA 98.516 23, 351,289 .85 7. 23
9128275Ql 05.625% 09/30/2001 DD 09/30/99 AAA 23,082,298.80 6.12
5,000,000.00 U S TREASURY NOTES 5 .811 6.304 AAA 99.141 51 086 1402.25 1. 55
9128272L5 06.250% 02/28/2002 DD 02/28/97 AAA 4 1957 1oso.oo 1.32
3,000,000.00 SEARS ROEBUCK ACCEP CORP MTN 5.049 6,807 A3 97.406 3,073,170.vO .91
01240QJA1 6 .630% 07/09/2002 DD 07/09/97 A-2,922,180.00 .78
2,000,000.00 BANKERS TR NY CORl' GLOBAL NT 5.881 5.763 Al 100. 558 1,992,800.00 .63
066365DW4 FLTG RT 05/11/2003 DD 05/11/98 A-2,011,160.00 .53
373,540.95 FHLMC MULTICL MTG P/C 1574 E 5.912 5 ~933 99. 4 37 373,015.65 .11
3l33T02D5 5.900% 06/15/2017 371,437 .91 .10
151 000,000.00 FEDERAL NATL MTG ASSN MTN 5.981 5 .,918 AAA 98.344 14,955,300.00 4.62
31364G2VO 5 .820% 07/19/2001 OD 07/19/99 AAA 14,751,600.00 3.91
2,500,000 .00 MERRILL LYNCH NOTES 5.995 6.401 AA3 98.359 2,526,725.00 .77
59018SXP4 6.375~ 10/01/2001 DD 10/03/97 AA-2,458,975.00 .65
11 500,000.00 SELI.SOUTH TELECOMMUNICATIONS 6.010 6.166 AA2 97 .313 7,497,255.00 2.28
079867AX5 6.000% 06/15/2002 DD 06/15/98 AAA 7, 298, 475.00 1. 94
2,673,228.65 STUDENT LN MKTG ASSN 98-2 Al 6.026 6 .520 AAA 99.444 2 ,667,485.38 .83
78442GBA3 FLTG RT 04/25/2007 DD 06/18/98 AAA 2,658,365.50 .n
12,500,000.00 FEDERAL HOME LN MTG CORP DEBS 6.062 6.076 AAA 98. 750 12,485,625.00 J.87
3134A3ZM1 6.000% 07/20/2001 DD 07/20/99 AAA 12,343,750.00 3 .29
2,000,000.00 BANKBOSTON CORP SR NTS 6.133 6.312 1\2 97.040 1,999,600.00 .60
06605TAL6 6.125% 03/15/2002 DO 03/12/99 A 1,940,800.00 .51
3,500,000.00 CHRYSLER FINL I.LC MTN fTR00615 6.154 6 .144 Al 100.000 3,498,635.00 1.09
17120QZ00 FLTG RT 08/08/2002 DD 04/08/98 A+ 3;500,000.00 .93
1,700,000.00 MORGAN STANLEY MTN #TR 00311 6.180 6.312 AA3 99.921 1,699,517.20 .53
61745ENY3 FLTG RT 01/28/2002 OD Ol/27 /00 A+ 1,698,657.00 . 45
i'LDANAL YIELD ANALYSIS PAGE 7
OCSF07522202 2000/05/31 RUN DATE 06/06/00
DISTRICT: LONG-TERM OPERATING RUN TIME 10.38.36 ===--== == ~~=--·--
PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE
SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE i TOTAL ------------------------------------------------------------------------~------------
31,443.57 FIFTH TBIRD BK AUTO TR 96A CI.A 6.200 6.216 AAA 99 .750 31,443.56 .00
31677EAA4 6.200% 09/01/2001 DD 03/15/96 31 ,364.96 .01
l.,000 ,000.00 POPULAR tNC MTN #TR 00004 6.201 6.276 A3 98.795 1,000,000.00 .30
73317PAD1 6.200% 04/30/2001 DD 04/21/99 BBB+ 987,850.00 .26
2,408, 351..00 FHLMC MULTICr.ASS CTF 2146 QT 6.207 6 .210 AAA 96.625 2,365,828.56 . 72
3133TKKU3 6.000% 11/15/2011 A.l\A 2,327,069.15 .62
2,000,000.00 FORD MTR CR CO TERM ENHANCED 6. 221 6 .215 A2 99.921 1,998,613.60 .62
3453.97SC8 FLTG RT 08/27/2006 DD 08/27/98 A 1,998,420.00 .53
3,000,000.00 CONSOLIDATED EDISON N Y DEBS 6 .271 6.181 Al 100.005 2,994,300.00 .94
209111CU5 FLTG RT 06/15/2002 DD 06/20/97 A+ 3,000,150.00 .so
21,500,000.00 COMMIT TO PUR GNMA SF MTG 6.286 6.950 AAA 93.531 19,817,197.50 6.30
01N062664 6 .500% 06/15/2030 AAA 20,109,165.00 5 .34
327,443.79 GREEN TREE CORP 99-D CL A-1 6.290 6.324 AAA 99.468 327,443.78 .10
3935052Y7 6.290\ 10/15/2013 DD 08/26/99 AAA 325, 701. 78 .09
41500 1000.00 FEDERAL NATL MTG ASSN MTN 6.291 6.347 AAA 98.156 4,488,705 .00 l. 38
31364CXVS 6.230% 03/01/2002 DO 03/03/97 AAA 4,417,020.00 1.17
3,000,000.00 HELLER FINL MTN jTR 00246 6.300 6.345 A3 99.296 3,000,000.00 .93
42333HLF7 FLTG RT 04/28/2003 DD 04/27/99 A-2,978,880.00 • 79
3 ,000,000.00 GENERAL MTRS ACCEP *TR 00562 6.303 6.270 A2 .99.828 2,996,430.00 .93
37042WZKO FLTG RT 02/14/2003 DD 02/14/00 A 2,994,840.00 .79
2,982,569.68 FBLMC MULTICLASS CTF E3 A 6.316 6.352 AM 97.855 2,985,931.62 .91
3133TCE95 VAR RT 08/15/2032 AAA 2,918,593.56 .77
2,660,233.66 GNMA GTD REMIC TR 2000-9 FH 6 .320 6.313 AAA 100.114 2,660,233.66 .83
3837H4NX9 VAR RT 02/16/2030 AAA 2,663,266.33 .71
2,000,000.00 BEAR STEARNS COS INC 6.330 7.007 A2 96.329 2,031,960.00 .60
073902AH1 6.750% 04/15/2003 A 1,926,580.00 .51
3,000,000.00 FORD MTR CR CO GLOBAL LANDMARK 6.350 6.361 A2 99.828 3,ooo,ooo.co .93
345397SRS FLTG RT 03/17/2003 OD 03/16/00 A 2,994,840 .00 .79
2,000,000.00 FORD MTR CR CO GLOBAL NTS 6.351 6 .869 A2 99.656 1,992,580.00 .62
345397RV7 FLTG RT 02/13/2003 DD 02/13/98 NR 1,993,120.00 .53
YLDANAL YJ:ELO ANALYSIS PAGE 8
OCSF07522202 2000/05/31 RUN DATE 06/06/00
UISTRICT: LONG-TERM OPERATING RUN TIME 10.38.36
-======:=-== -----===
PAR VALUE YTM AT CURRENT MOODY MAR.l<ET TOTAL COST/ % TYPE
SECURITY ID SECURITY DESCRIPTION .BOOK YIELD S-P PRICE MARKET VALUE % TOTAL
~-------------------------------------------------------------------------------
3,000,000.00 GMAC MTN FLTG RT 6.389 6.524 A2 100,359 3,010,830.00 .94
37042WVR9 12/17 /2001 DD 12/15/98 A 3,010,770.00 .80
4,000,000.00 HOUSEHOLD FIN CO M.TN 6.440 6.384 A2 100.882 4,000,000.00 1. 26
44181KZA5 FLTG RT 06/24/2003 DD 06/24/98 A 4,035,280.00 1. 07
2,000,000.00 FHLMC MULTlCLASS CTF Tll A6 6 .496 6 .904 AAA 94 .14/ 2,000,000.00 .59
3133TDPV2 6.500% 09/25/2018 AAA 1,882,940.00 .so
2,000,000.00 HELLER FINANCIAL INC NTS 6.507 6.458 Al 100.759 2,000,000.00 .63
423328BK8 FLTG RT 06/25/2001 DD 06/25/99 A-2,015,180.00 .53
2,434,651.24 FBLMC MULTICLASS CTF SER 1620Z 6.520 7. 511 AAA 79. 878 2,278,511.30 .60
3133Tl7A4 6.000% 11/15/2023 DO 11/01/93 AAA 1 ,944,739.27 .52
6,250,000.00 COMMIT TO PUR GNMA SF MTG 6.549 6.610 AAA 90.766 5,605,468.75 l. 77
01N060668 6.000% 06/15/2029 AAA 5,672,875.00 1.51
21,400,000.00 U S TREASURY NOTES 6.607 6.521 AAA 99.672 21,276,109.37 6.68
912827Z62 06.500% 10/15/2006 DD 10/15/96 AAA 21,329,808.00 5.66
5,0001 000.00 S.!\LOMON SB BLOGS MTN 6.625 6,640 AA3 99.781 s,000,000.00 1.56
79548EEE8 FLT<; RT 04/28/2003 DD 04/28/00 4,989,050.00 1.32
8,423,058.80 FHLMC GROUP #G5-0476 6.628 7.079 AAA 98.879 8,554,669.08 2.61
31280DQ55 7.000% 02/01/2003 OD 02/01_/98 AAA 8,328,636.31 2.21
2,J00,000.00 LEHMAN BROS HLDGS MTN TR 00333 6.672 7.107 A3 101.169 2,322,379.00 .72
52517PPW5 FLTG RT 04/01/2002 DD 03/29/99 A 2,326,887.00 .62
s,000,000.00 LEHMAN BROS HLDGS MTN 6.674 6 .668 A3 100.093 s,000,000.00 1.56
52517PQQ7 FLTG RT 12/1 2/2002 OD 12 /07 /99 A 510041 650.00 l. 33
1,891,527.58 GNMA I I POOL t080088M 6.705 6.369 AAA 100.094 1,932,904.75 .59
36225CC20 VAR RT 06/20/2027 DD 06/01/97 AAA 1,893,305.62 .so
10,500,000.00 FEDERAL HOME LN MTG CORP DEBS 6. 711 6. 571 AAA 95.875 10,323,075.00 3.15
3134A3TCO 6.300% 06/01/2004 DD 06/01/99 AAA 10,066,875.00 2.67
2,000,000.00 MARSH & MCLENNAN COS INC SR NT 6.717 6.949 A2 95.3~0 l,992 I 280. 00 .59
571748AB8 6.625% 06/15/2004 OD 06 /14/9!1 AA-l,9061aoo.oo .51
3,000,000.00 FORD MTR CR CO GLOBAL LANDMARI< 6 .739 7 .003 A2 95.668 2,995,080.00 .90
345397SJ3 6.700% 07/16/2004 DO 07/16/99 A+ 2,870,040.00 • 76
YLDANAL YIELD ANALYSI S PAGE 9
0CSF0752i202 2000/05/31 R\JN DATE 06/06/00
DISTRICT: LONG-l'.E.R.M OPE.RATING RUN TI.ME 10.38.36
PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ \ TYPE
SECURITY ID SECURlTY DESCRIPTION BOOR YIELD S-P PRICE MARKET V'ALUE \ TOTAL ---------~---------------------__ _,,_ ___ --------------------------
900,000.00 FEDERAL HOME LN BK CONS BOS 6 . 777 6.812 AAA 99.094 899,550.00 .27
3133MAQJ1 6.750\ 02/01/2002 DD 02/0l/OO AAA 8l!l,846.00 .24
2,soo,000.00 COUNTRYWIDE HOME LNS INC NT 6.866 7.199 A3 95.153 2,498,400.00 • 74
22237UAB8 6 .850% 06/15/2004 DD 06/24/99 A 2,378,825.00 .63
7,300,000.00 ONEOK INC NEW NT 6.960 6 .966 A2 99.921 7,300,000.00 2.28
68268011J2 FLTG RT 04/24/2002 DD 04/24/00 A 7,294,233.00 l. 94
1,404,228.15 GNMA II POOL #0080023 6.992 7.124 AAA 100 .016 1 ,427,485.68 .44
36225CAZ9 7.125% 12/20/2026 DD 12/01/96 AAA 1,404,452.83 .37
2,000,000.00 GNMA GTD REMIC TR 2000-2 PA 7 .014 7.082 AAA 98.847 1,996,875.00 . 61
3837H3C70 7.000% 12/20/2022 AAA 11976,940.00 .52
1,000,000.00 OLD KENT BK MTN SB 00001 7.084 7, 113 A2 99.593 1,000,000.00 2.18
67982XAA6 VAR RT 11/01/2005 DD 04/28/00 6,971,510.00 1.85
2,100,000.00 FEDBRAt. NATL MTG ASSN DEBS 7. ll3 7 .044 AAA 94.047 2,030,133.00 .61
31359MEY5 6.625% 09/15/2009 DD 09/01/99 AAA 1,974,987.00 .52
2,000,000.00 LONG ISLAND LTG CO DEB 7 ,512 8.807 BAA3 93.103 2,151,250.00 .58
542671CT7 8.200\ 03/15/2023 DD 03/28/93 A-1,862,060.00 .49
1,315,934.42 GREYSTONE SVCNG CORP FHA #95-7 7.564 7 .540 AAA 98.539 1,296,709.44 .40
39810fAE4 7.430\ 06/01/2003 DD 02/29/00 AAA 1,296,709.44 .34
1,000,000.00 FORD MOTOR CR CO NT 7 .582 7,115 A2 94.867 965,170.00 .29
345397GV9 6.750% 05/15/2005 A 948,670.00 .25
975,188.95 WMP/HUNTOON ~AlGE #000-11150 7 .684 7 .667 AAA 97.828 954,009.07 .29
302998GE3 7.500\ 12/0l/2030 DD 10/2 1/99 AAA 954,009.07 .·25
J,000,000.00 PACIFICORP SBCD MTN •TR 00115 7 .709 7.348 A2 99. 341 2,950,530 .00 .93
69512EEU5 7.300% 10/22/2004 DD 10/22/921 A 2,980,230.00 .79
9,600,000.00 U S TREAS1JR.Y BONDS 7 .966 9 .954 AAA 139.609 13, 314, 211. 20 4.20
91281 0DL9 12.500% 08/15/2014 DD 08/15/84 AAA 13,402,464.00 3.56
1,600,000,00 ALLSTATE CORP SR NT 7.967 7 .983 Al 98.6:44 1,59'1,032.00 .49
020002AL5 7.875\ 05/01/2005 DD 05/01/00 A+ 1,578,304.00 .42
2,000,000.00 COMMIT TO PUR GNMA SF MTG 7 .977 7.986 AAA 100 .172 1,997 ,500.00 .62
01N080666 0.000• 06/15/2030 AAA 2,003,440,00 .SJ
YLDANAL
OCSF07522202
DISTRICT: LONG-TERM OPERATING
PAR VALOE
SECURITY ID SECURITY DESCRIPTION
TOTAL FIXED INCOME SECURITIES
TOTAL
YIELD ANALYSIS
2000/05/31
==========---=====
YTM AT CURRENT MOODY
BOOK YIELD S-P
5.316 5,832
5.337 5.678
MARKET
PRICE
PAGE
RON DATE
RUN TIME
TOTAL COST/
MAR.KET VALUE
322,266,203.38
318,861,688.23
380,306,192.31
376,901,677 .16
10
06/06/00
10.38.36
\ TYPE
% TOTAL
100.00
84.60
100.00
100.00
ORANGE COUNTY SANITATION DISTRICT
OCSGOOOJOOOO
OCSD-CONSOLJDATED
SHARES/PAR
SECURITY ID
TRANSCODE
PORTFOLIO DETAIL
01-MAY-2000-31-MAY-2000
TRANSACTlON DESCRIPTION/
BROKER
RECEIPTS AND DISBURSEMENT TRANSACTIONS
CASH/SECURlTIES RECEIVED FROM PLAN ADMINISTRATOR
LIQUID OPER-PIMCO
0.00 RECD FROM PLAN ADMINISTRATOR
NA9123459 ORANGE COUNTY SANITATION
CD
OTHER ADMINISTRATIVE EXPENSES
.UQUlD OPER-PIMCO
0.00 FED WlRE FEES FOR APRIL
NA9t23459 cw
LONG TERM OPER-PIMCO
0.00 FED WIRE FEES FOR APRIL
NA9123459
cw
PURCHASES
CASH & CASH EQUIVALENTS
LONG TERM OPER-PlMCO
1,000,000.00 MOTOROLA CR CO DISC
62007AFD7 06()3/2000
B GOLDMAN SACHS & CO, NY
LONG TERM OPER-?IMCO
1,000,000.00 MOTOROLA CR CO DISC
62007AFD7 06/13/2000
FC GOLDMAN SACHS & CO, NY
J 2-Jun-2000 10: 13:,/ I
TRADE DATE/
SETTLDATEf
COMPLDATE
l 9-May-2000
I 9-May-2000
04-May-2000
04-May-2000
04-May-2000
04-May-2001)
01-May-2000
0 l-May-2000
Ol-May-2000
01 -May-2000
OJ-May-2000
PAGE·
AMOUNT I
COST/
GAIN/LOSS
13,000,000.00
0.00
0.00
-4.25
0.00
0.00
-11.05
0.00
0.00
-992,534. 72
992,534.72
0.00
-992,534.72
0.00
0.00
Executive Workbench
OCSGOOO 10000
OCSD-CONSOLJDATED
SHARES/PAR
SECURJTYID
TRANSCODE
2, 700,000.00
313396YR8
8
2, 700,000.00
313396YR8
FC
428.52
996087094
8
149,482.88
996085247
B
149,482.88
996085247
FC
1,825.41
996087094
B
1,825.41
996085247
B
12-Jim-2000 10~13:41
II ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
Ol-MAY-2000 -31-MAY-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
FEDERAL HOME LN MTG CORP DJS
MAT 06/2712000
MORGAN STANLEY & CO INC, NY
J.,ONG TERM OPER-PIMCO
FEDERAL HOME LN MTG CORP DIS
MAT 06/27/2000
MORGAN STANLEY & CO INC. NY
LIQUID OPER-PIMCO
BSDT-LATE MONEY DEPOSIT ACCT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
DREYPUS TREASURY CASH MGMT
LONG TERM OPER-PTMCO
BSDT-LATE MONEY DEPOSIT ACCT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
TRADE DATE/
SETTLDATE/
COMPLDATE
0 l -May-2000
01-May-2000
01-May-2000
01 -May-2000
Ol-Mny-2000
02-May-2000
02-May-2000
02-May-2000
02-May-2000
02-May-2000
02-May-2000
02-May-2000
02-May-2000
02-May-2000
03-May-2000
03-May-2000
PAGE: 2
AMOUNT/
COST/
GAIN/LOSS
-2,673,409.50
2.673,409.50
0.00
-2,673,409.50
0.00
0.00
-428.52
428.52
0.00
-149,482..88
149,482.88
0.00
-149,482.88
0.00
0.00
-1,825.41
1,825.41
0.00
-1,825.41
l,825.41
0.00
Execwive Workbench
OCSGOOO I 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
428.52
996085247
B
428.52
996085247
FC
l,825A1
996085247
FC
21,303.95
996085247
B
21,303.95
996085247
FC
4,500,000.00
313588XP5
B
4,500,000.00
313588XP5
FC
I ?-J1111-2000 I 0: I 3:41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MA Y-2000 -31-MA Y-2000
TRANSACTIO!'i OESCRU'TION/
BROKER I
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
FEDERAL NA TL MTG ASSN DISC
MAT 06/0 I /2000
CREDIT SUISSE FIRST BOSTON C
LONG TERM OPER-PIMCO
FEDERAL NATL MTG ASSN DISC
MAT 06/01/2000
CREDIT SUISSE FIRST BOSTON C
TRADE DATE/
SETTLDATE/
COMPLDATE
03-May-2000
03-May-2000
03-May-2000
03-May-2000
03-May-2000
03-May-2000
03-May-2000
03-May-2000
04-May-2000
04-May-2000
04-May-2000
04-May-2000
04-May-2000
04-May-2000
04-May-2000
04-May-2000
04-May-2000
04-May-2000
PAGE. 3
AMOUNT/
COST/
GAIN/LOSS
-428.52
428.52
0 00
-428.52
0.00
0.00
-1,825.41
0.00
0.00
-21,303.95
21,303.95
0.00
-21,303.95
0.00
0.00
-4,4 78,685.00
4,478,685.00
0.00
-4,478,685.00
0,00
0.00
Executive W1Jrkbw1ch
@ [ ORANGE COUNTY SANITATION DISTRICT PAGE: 4
PORTFOLIO DETAIL
OCSGOOO 10000 01 -MAY-2000 -31-MAY-2000
OCSD·CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPL DATE GAIN/LOSS
LONG TERM OPER-PlMCO
1,722,699.74 DREYFUS TREASURY CAS H MGMT l O-May-2000 -1, 722,699. 74
996085247 1 O-May-2000 1,722,699.74
B 0.00
LONG TERM OPER-PIMCO
1,722,699.74 DREYFUS TREASURY CASH MGMT I O-May-2000 -1,722,699.74
996085247 I O-May-2000 0.00
PC I O-May-2000 0.00
LONG TERM OPER-PIMCO
31,000.00 DREYFUS TREASURY CASH MGMT l 1-May-2000 -31,000.00
996085247 l 1-May-2000 31 ,000.00
B 0.00
LIQUID OPER-PJMCO
3, I 81.22 DREYFUS TREASURY CASH MGMT l 1-May-2000 -3, 181.22
996085247 1 l-May-2000 3,181.22
B 0.00
LJQUID OPER-PIMCO
3, 181.22 DREYFUS TREASURY CASH MGMT 1 l -May-2000 -3,181.22
996085247 11-May-2000 0.00
FC 11-May-2000 0.00
LONG TERM OPER-PIMCO
31,000.00 DREYFUS TREASURY CASH MGMT I l-May-2000 -31,000.00
996085247 l l-May-2000 0.00
FC l l-May-2000 0.00
LIQUID OPER-PIMCO
1,700,000.00 FEDERAL NATL MTG ASSN DISC l l-May-2000 -J,697,695.56
313588XA8 MAT 05/19/2000 I l-May-2000 1,697,695.56
B MORGAN ST AN LEY & CO INC, NY 0.00
l 2-Jun-2000 10: I 3:41 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 5
PORTFOLIO DETAIL
OCSGOOOJ 0000 01-MA Y-2000 -31-MAY-2000
OCSD-CONSOLJDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTlON DESCRIPTION/ SETTL DATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LIQUID OPER-PIMCO
1,700,000.00 FEDERAL NA TL MTG ASSN DTSC l 1-May-2000 -1,697,695. 56
313588XA8 MAT 05/19/2000 I l-May-2000 0.00
FC MORGAN STANLEY & CO INC, NY 1 l-May-2000 0.00
LTQUlD OPER·PIMCO
400.000.00 FEDERAL HOME LN MTG CORP DIS l l-May-2000 -399, 123 .22
313396XF5 MAT 05/24/2000 I 1-May-2000 399,123.22
B GOLDMAN SACHS & CO, NY 0.00
LIQUID OPER-PIMCO
400,000.00 FEDERAL HOME LN MTG CORP DJS l 1-May-2000 -399, 123.22
313396XF5 MAT 05/24/2000 l 1-May-2000 0.00
FC GOLDMAN SACHS & CO, NY l 1-May-2000 0.00
LONG TERM OPER-PlMCO
5,000,000.00 UBS FIN DEL INC DISC 12-May-2000 -4,969,683.33
90262CFF9 06/15/2000 I 2-May-2000 4.969,683.33
B MERRILL LYNCH PIERCE FENNER 0.00
LONG TERM OPER-PIMCO
5,000,000.00 UBS FIN DEL INC DISC 12-May-2000 -4,969,683.33
90262CFF9 06/)5/2000 l 2-May-2000 0.00
FC MERRILL LYNCH PIERCE FENNER l 2-May-2000 0.00
LONG TERM OPER-PTMCO
1,900,000.00 FEDERAL HOME LN MTG CORP DIS 12-May-2000 -1,893,792.81
313396XN8 MAT 05/31/2000 12-May-2000 1,893, 792.81
B CREDIT SUISSE FIRST BOSTON C 0.00
LONG TERM OPER-PIMCO
1,900,000.00 FEDERAL HOME LN MTG CORP DIS 12-May-2000 -1,893,792.81
313396XN8 MAT 05/31 /2000 J 2-May-2000 0.00
fC CREDTT SUISSE FIRST BOSTON C 12-May-2000 0.00
I 2.Jun-2000 JO: 13:41 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 6
PORTFOLIO DETAIL
OCSGOOO I 0000 01-MAY-2000 -31-MAY-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LIQUID OPER-PfMCO
15,425.00 DREYFUS TREASURY CASH MGMT 15-May-2000 -15,425.00
996085247 15-May-2000 15,425.00
8 0.00
LlQUID OPER-PIMCO
15,425.00 DREYFUS TREASURY CASH MGMT l 5-May-2000 -15,425.00
996085247 15-May-2000 0.00
FC I S-May-2000 0.00
LONG TERM OPER-PIMCO
341,160.30 DREYFUS TREASURY CASH MGMT l 5-May-2000 -341,160.30
996085247 l 5-May-2000 341,160.30
B 0.00
LONG TERM OPER-PIMCO
341,16030 DREYFUS TREASURY CASH MGMT l 5-May-2000 -341,160.30
996085247 l 5-May-2000 0.00
FC 15-May-2000 0.00
LONG TERM OPER·PIMCO
S,986.07 BSDT-LATE MONEY DEPOSIT ACCT 15-Mny-2000 -5,986.07
996087094 I 5-May-2000 5,986.07
B 0.00
LONG TERM OPER-PIMCO
4,300,000.00 FEDERAL HOME 1,.N MTG CORP DJS l 5-May-2000 -4,293,388. 75
313396XF5 MAT 05/24/2000 15-May•2000 4,293,388.75
B GOLDMAN SACHS & CO, NY 0.00
LONG TERM OPER-PIMCO
4,300,000.00 FEDERAL HOME LN MTG CORP ors I 5-May-2000 -4,293,388. 75
313396XP5 MAT 05/24/2000 l 5-May-2000 0.00
FC GOLDMAN SACHS & CO, NY I 5-May-2000 0.00
/2-Jun-2000 JO: 13:41 Executive Workbench
OCSGOOO 10000
OCSD-CONSOL!DATED
SHARES/PAR
SECURITY JD
TRANS CODE
700,000.00
2338EOEK8
B
700.000.00
2338EOEK8
FC
24,270.55
996085247
B
24,270.55
996085247
FC
5,986.07
996085247
B
5,986.07
996085247
PC
56,714.71
996087094
B
12-Jun-2000 10:13:41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETA IL
Ol-MAY-2000 -31-MAY-2000
TRANSACTIOJ'f DESCRIPTION/
BRO I< ER
LONG TERM OPER-PIMCO
DAIMLERCHRYSLER DISC
0511912000
MORGAN J P SECS -FIXED lNCO
LONG TERM OPER-PlMCO
DAIMLERCHR YSLER DISC
05/19/2000
MORGAN J P SECS -PIXED INCO
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PfMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-P!MCO
DREYFUS TREASURY CASH MGMT
LONG TBRM OPER-PIMCO
BSDT-LATEMON£Y DEPOSIT ACCT
TRADE DATE/
SETTL DATE/
COMPLDATE
15-May-2000
lS-May-2000
I 5-May-2000
15-May-2000
15-May-2000
16-May-2000
16-May-2000
16-May-2000
16-May-2000
I 6-May-2000
16-May-2000
16-May-2000
16-May-2000
16-May-2000
16-May-2000
16-May-2000
16-May-2000
PAGE· 7
AMOUNT/
COST/
GAIN/LOSS
-699,498,33
699,498.33
0.00
-699,498.33
0.00
0.00
-24,270.55
24,270.55
0.00
-24,270.55
0.00
0.00
-5,986.07
5,986.07
0.00
-5,986.07
0.00
0.00
·56,714.71
56,714.71 o.oo
E.xecutive Workbench
OCSG000/0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
3,500,000.00
993691683
B
3,500,000.00
993691683
FC
56,714.71
996085247
B
56,714.71
996085247
FC
12,377.50
996085247
B
12,377.50
996085247
PC
3 '000, 000. 00
90262CFF9
B
12-11111-2000 10:13:41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000-31-MAY-2000
TRANSACTION DESCRIPTION/
BROKER
LIQUID OPER-PIMCO
LEHMAN BROTHERS REPO
05.880% 05/17/2000 DD 051161
LEHMAN BROS INC, NEW YORK
LIQUID OPE'.R.-PIMCO
LEHMAN BROTHERS REPO
05.880% 05/17/2000 DD 05/16/
LEHMAN BROS INC, NEW YORK
LONG TERM OPER-PlMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-P!MCO
DREYFUS TREASURY CASH MGMT
LIQUlD OPER-PlMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
UBS FTN DEL INC DISC
06/15/2000
GOLDMAN SACHS & CO, NY
TRADE DATE/
SETTLDATE/
COMPLDATE
l 6-May-2000
16-May-2000
I 6-May-2000
16-May-2000
l 6-May-2000
l 7-May-2000
17 -May-2000
l 7-May-2000
l 7-May-2000
l 7-May-2000
l 8-May-2000
18-May-2000
18-May-2000
18-May-2000
18-May-2000
I 8-May-2000
18-May-2000
PAGE B
AMOUNT/
COST/
GAIN/LOSS
-3,500,000.00
3,500,000.00
0.00
-3,500,000.00
0.00
0.00
-56,714.71
56,714.71
0.00
-56,714.71
0.00
0.00
-12,377.50
12,377.50
0.00
-12,377.50
0.00
0.00
-2,984,833.33
2,984,833.33
0.00
Exec11ti11e Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE. 9
PORTFOLIO DETAIL
OCSGOOOJOOOO 01-MAY-2000 -31-MA Y-2000
OCSD-CONSOLJDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LIQUID OPER-PlMCO
1,000,000.00 FEDERAL HOME LN MTG CORP DIS 18-May-2000 -992,568.33
313396YT4 MAT 06/29/2000 I 8-May-2000 992,568.33
B HSBC SECS INC, NEW YORK 0.00
LIQUID OPER-PIMCO
.1,000,000.00 FEDERAL HOME LN MTG CORP DIS 18-May-2000 -992,568.33
313396YT4 MAT 06/29/2000 18-May-2000 0.00
FC HSBC SECS INC, NEW YORK 18-May-2000 0.00
LONG TERM OPER-PlMCO
3,000,000.00 UBS FIN DEL INC DJSC 18-May-2000 -2,984,833.33
90262CFF9 06/15/2000 18-May-2000 0.00
FC GOLDMAN SACHS & CO, NY 18-May-2000 o.oo
LIQUID OPER-PlMCO
5,102.93 DREYFUS TREASURY CASH MGMT 19-May-2000 -5, 102.93
996085247 19-May-2000 5,102.93
H 0.00
LIQUID OPER-PIMCO
5, I 02,9.3 DREYFUS TREASURY CASH MGMT I 9-May-2000 -5,102.93
996085247 19-May-2000 0.00
FC 19-May-2000 0.00
LIQU10 OPER-PIMCO
1,200,000.00 FEDERAL NATL MTG ASSN DISC l 9-May-2000 -1, 194,9 12.00
313588YA7 MAT 06/12/2000 19-May-2000 1,194,912.00
B CHASE SECURITIES, NEW YORK 0.00
LIQUID OPER-PIMCO
1,200,000.00 FEDERAL NATL MTG ASSN DISC l 9-May-2000 -1,194,912.00
313588YA7 MAT 06/12/2000 J 9-May-2000 0.00
FC CHASE SECURITIES, NEW YORK 19-May-2000 0.00
11-.lun-2000 10.-13:41 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 10
PORTFOLIO DETAIL
OCSGOOO I 0000 01-MAY-2000 -31-MA Y-2000
OCSD-CONSOLIDATED
SHARES/PAR T RADE DATE/ AMOUNT/
SECURITY ID TRANSACTIOl'f DESCRIPTION/ SETTLDATE/ COST!
TRANSCODE B.ROKER COMPLDATE GAIN/LOSS
LIQUID OPER-PIMCO
505,000.00 FEDERAL NATL MTG ASSN DISC N I 9-May-2000 -499,985.07
Jl3588ZHl MAT 07 I l 312000 19-May-2000 499,985.07
B LEHMAN GOVT SECS INC. NY 0.00
LIQUID OPER-PIMCO
505,000.00 FEDERAL NATL MTG ASSN DlSC N I 9-May-2000 -499,985.07
313588ZH1 MAT 07/13/2000 I 9-May-2000 0.00
Fe LEHMAN GOVT SECS lNC, NY 19-May-2000 0.00
LIQUID OPER-PIMCO
13,000,000.00 CREDIT SUISSE FST REPO 19-May-2000 -13,000,000.00
99369M884 06.050% 0512212000 DD 05/19/ 19-May-2000 13,000,000.00
B CREDIT SUISSE FlRST BOSTON C 0.00
LIQUID OPER-PIMCO
l 3,000,000.00 CREDIT SUISSE FST REPO 19-May-2000 -13.000,000.00
99369M884 06.050% 05/22/2000 DD 051191 19-May-2000 0.00
FC CREDIT SUISSE FIRST BOSTON C 19-May-2000 0.00
LONG TERM OPER-PJMCO
7,800,000.00 GENERAL ELEC CAP DISC I 9-May-2000 -7,733,299.J 7
36959HG50 07/05/2000 l 9~May-2000 7,733,299.17
B GENERAL ELECTRJC CAPTlAL COR 0.00
LONG TERM OPER-PlMCO
7,800,000.00 GENERAL ELEC CAP DISC 19-May-2000 -7,733,299.17
36959HG50 07/05/2000 19-May-2000 0.00
FC GENERAL ELECTRIC CAPTIAL COR 19-May-2000 0.00
LIQUID OPER-PIMCO
1,100,000.00 BECTON DICKINSON DISC 19-May-2000 -1,090,163.25
07588RGA7 07/10/2000 22-May-2000 1,090, 163.25
B GOLDMAN SACHS & CO, NY 0.00
/2-Jrm-2000 10:/3:41 &ecutive Workbench
OCSGOOOJ 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANS CODE
1,100,000.00
07588RGA7 re
76,737.61
996085247
B
76,737.6l
996085247
PC
600,000.00
90262CFK8
B
600,000.00
90262CFK8
FC
2,809,000.00
313588A62
B
2,809,000.00
313588A62
FC
12-Jun-2000 10:1 J_ ./I
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000 -31-MAY-2000
TRANSACTIOJ'! DESCRIPTION/
BROKER
UQUID OPER-PIMCO
BECTON DICKINSON DISC
07/1012000
GOLDMAN SACHS & CO, NY
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PlMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PJMCO
UBS FIN DEL INCDJSC
06/\9/2000
GOLDMAN SACHS & CO, NY
LIQUJD OPER-PIMCO
UBS FlN DEL INC DISC
06/1912000
GOLDMAN SACHS & CO, NY
LIQUID OPER-PlMCO
FEDERAL NATL MTG ASSN DISC N
MAT 08/03/2000
MORGAN J P SECS -FIXED INCO
UQUID OPER-PJMCO
FEDERAL NATL MTG ASSN DISC N
MAT 08/03/2000
MORGAN J P SECS -FIXED !NCO
TRADE DATE/
SETTLDATE/
COMPLDATE
I 9-May-2000
22-May-2000
22-May-2000
22-May-2000
22·May-2000
22-May-2000
22-May-2000
22-May-2000
22-May-2000
22·May-2000
22-May-2000
22-May-2000
22-May-2000
22-May-2000
22-May-2000
22-May-2000
22-May-2000
22-May-2000
PAGE.: JI
AMOUNT/
COST!
GAIN/LOSS
-1,090,163.25
0.00 o.oo
-76,737.61
76,737,61
0.00
-76,737.61
0.00
0.00
-596,943.33
596,943.33
0.00
-596,943.33
0.00
0.00
-2, 771,861.90
2,77 1,861.90
0.00
-2.771,86 1.90
0.00
0.00
Executive lfi.wkbe11c/1
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 12
PORTFOLIO DETAIL
OCSGOOO l 0000 01-MAY-2000 -31-MAY-2000
OCSD-CONSOL/DATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECUR1TYJD TRANSACT ION DES CRlPTlON/ SE'TTL DATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LIQUID OPER-PIMCO
5,000,000.00 LEHMAN BROTHERS REPO 22-May-2000 -5,000,000.00
99369Pl92 06.150% 0512312000 DD 051221 22-May-2000 5,000,000.00
B LEHMAN BROS INC, NEW YORK 0.00
LIQUID OPER-PTMCO
5,000,000.00 LEHMAN BROTHERS REPO 22-May-2000 -5,000,000.00
99369P l92 06. I 50% 05/23/2000 DD 05/22/ 22-May-2000 0.00
FC LEHMAN BROS !NC, NEW YORK 22-May-2000 0.00
LONG TERM OPER-PIMCO
4,700,000.00 UBS FlN DEL INC DISC 22-May-2000 -4,699.156.61
90262CEl'8 05/23/2000 22-May-2000 4,699,156.61
B GOLDMAN SACHS & CO, NY 0.00
LONG TERM OPER-PTMCO
4, 700,000.00 UBS FIN DEL INC DISC 22-May-2000 -4,699, 156.61
90262CEP8 05/23/2000 22-May-2000 0.00
FC GOLDMAN SACHS & CO, NY 22-May-2000 0.00
LIQUID OPER-PIMCO
500,000.00 HEINZ H J CO DISC 22-May-2000 -495,549. J 7
42307JGA2 07/10/2000 22-May-2000 495,549.17
B GOLDMAN SACHS & CO, NY 0.00
LIQUID OPER-PlMCO
500,000.00 HETNZ H J CO DISC n-May-2000 -495,549.17
42307JGA2 07/1012000 22-May-2000 0.00
FC GOLDMAN SACHS & CO, NY 22-May-2000 0.00
LIQUID OPER-PJMCO
1,500,000.00 FEDERAL HOME LN MTG CRP DlSC 22-May-2000 ·1,480,779.17
313396A45 MAT 08/0112000 23-May-2000 1,480,779.17
B LEHMAN GOVT SECS INC, NY 0.00
12-.lim-2000 TO: 13:41 Executive Workbench
@ ,, ORANGE COUNTY SANITATION DISTRICT PAGE. 13
PORTFOLIO DETAIL
OCSGOOO I 0000 01-MAY-2000-31-MAY-2000
OCSD-CONSOL!DATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRA NSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
L.IQUID OPl3R-PfMCO
1,500,000.00 FEDERAL HOME LN MTG CRP DISC 22-May-2000 -1,480,779.17
313396A45 MAT 08/01/2000 23-May-2000 0.00
FC LEHMAN GOVT SECS INC, NY 23-May-2000 0.00
LONG TERM OPER-PIMCO
838.17 DREYFUS TREASURY CASH MGMT 23-May-2000 -838.17
996085247 23-May-2000 838.17
B 0.00
LONG TERM OPER-PlMCO
838.17 DREYFUS TREASURY CASH MGMT 23-May-2000 -838.17
996085247 23-May-2000 0 00
FC 23-May-2000 0.00
LIQUID OPER-PIMCO
3,200,000.00 FEDERAL HOME LN BK CONS DlSC 23-May-2000 -3, 187,058.67
313384YD5 MAT 06/15/2000 23-May-2000 3, J 87,058.67
B GOLDMAN SACHS & CO, NY 0.00
LONG TERM OPER-PIMCO
11,700,000.00 OBS FIN DEL INC DISC 23-May-2000 -4,699,161.83
90262CBQ6 05/24/2000 23-May-2000 4,699, 16 l .83
B GOLDMAN SACHS & CO, NY 0.00
LONG TERM OPER-PIMCO
4, 700,000.00 UBS FIN DEL INC DISC 23-May-2000 -4,699, I 61.83
90262CEQ6 0512412000 23-May-2000 0.00
FC GOLDMAN SACHS & CO, NY 23-May-2000 0.00
LrQUID OPER-PIMCO
J,200,000.00 FEDERAL HOME LN BK CONS DlSC 23-May-2000 -3, 187,058.67
313384YD5 MAT 06115/2000 23-May-2000 0.00
FC GOLDMAN SACHS & CO. NY 23-May-2000 0.00
12-Jun-2000 10: 13:41 Executive Workbench
OCSGOOO 10000
OCSD-CONSOLJDATED
SHARES/PAR
SECURITY ID
TRANSCODE
400,000,00
313384XH7
B
400,000.00
313384XH7
FC
38,069.16
996085247
B
38,069.16
996085247
FC
1,600,000.00
3I3384YE3
B
1,600,000.00
313384YE3
FC
900,000.00
38142TGH2
B
/2-Jun-2000 10:13:41
II ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000-31-MAY-2000
TRANSACTIOl'j DESCRIPTION/
BROKER
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MAT 05/26/2000
MORGAN STANLEY &CO INC, NY
LIQUID OPER·PfMCO
FEDERAL HOME LN BK CONS DISC
MAT 05/26/2000
MORGAN STANLEY & CO TNC, ~NY
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PJMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MAT 06/16/2000
MORGAN JP SECS -FIXED INCO
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MAT 06/J 6/2000
MORGAN JP SECS -FIXED INCO
LIQUID OPER-PIMCO
GREAT LAKES FDG DISC
0717/2000
GOLDMAN SACHS & CO, NY
TRADE DATE/
SETTL DATE/
COMPLDATE
23-May-2000
23-May-2000
23-May-2000
23-May-2000
23-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
PAGE:
AMOUNT/
COST/
GAIN/LOSS
-399, 793.33
399,793.33
0.00
-399, 793.33
0.00
0.00
-38,069.16
38,069.16
0.00
-38,069.16
0.00
0.00
-1 ,593,539 .56
1,593,539.56
0.00
-1,593,539.56
0.00
0.00
-891,103.50
891,103.50
0.00
Executive Workbench
@ ,, ORANGE COUNTY SANITATION DISTRICT PAGE IS
PORTFOLIO DETAIL
OCSGOOO I 0000 01-MAY-2000 -31-MAY-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRJPTJON/ SETTLDATE/ COST/
TRANS CODE BROKER CQMPLDATE GAIN/LOSS
LIQUID OPER-PIMCO
900,000.00 GREAT LAKES FOG DISC 24-May-2000 -891,103.50
38142TGH2 0717/2000 24-May-2000 0.00
FC GOLDMAN SACJ{S & CO, NY 24-May-2000 0.00
LONG TERM OPER-PIMCO
75,090.89 DREYFUS TREASURY CASH MGMT 25-May-2000 -75,090.89
996085247 25-May-2000 75,090.89
B 0.00
LONG TERM OPER-PlMCO
75,090.89 DREYFUS TREASlJR Y CASH MGMT 25-May-2000 -75,090.89
996085247 25-May-2000 0.00
FC 25-May-2000 0.00
LONG TERM OPER-PIMCO
6,200,000.00 HEINZ HJ CO DISC 25-May-2000 -6, 138,051.67
42307JGKO 07/19/2000 25-May-.2000 6, 138,051.67
B LEHMAN GOVT SECS INC, NY 0.00
LONG TERM OPER-PIMCO
6,200,000.00 HElNZ HJ CO DISC 25-May-2000 -6, 138,051.67
42307JGKO 0711912000 25-May-2000 0.00
FC LEHMAN GOVT SECS INC, NY 25-May-2000 o.oo
LONG TERM OPER-PIMCO
28,093.34 DREYFUS TREASURY CASH MGMT 26-May-2000 -28,093.34
996085247 26-May-2000 28,093.34
B 0.00
LONG TERM OPER-PIMCO
28,093,34 DREYFUS TREASURY CASH MGMT 26-May-2000 -28,093.34
996085247 26-May-2000 0.00
PC 26-May-2000 0.00
12-Jun-2000 10:13:41 Execufive Workbench
utlANt;E COUNTY SANITATION DISTRICT 11 PAGE:
'({!) PORTFOLIO DETAIL
OCSGOOOJOOOO Ol-MAY-2000 ~ 31-MA Y-2000
OCSD-CONSOL!DATED
SHARES/PAR TRADE DATE/ AMOUNT
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST.
TRANS CODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PlMCO
5,600,000.00 ABBOTT LABS DISC 26-May-2000 -5,564, 774.44
00282AFW1 06/30/2000 26-May-2000 5,564,774.44
B GOLDMAN SACHS & CO, NY 0.00
LONG TERM OPER-PIMCO
5.600.000.00 A.BBOTf LABS OIS\ 26-May-2000 -5,564, 774.44
00282AFW1 06/30/2000 26-May-2000 0.00
FC GOLDMAN SACHS & CO, NY 26-May-2000 0.00
LIQUID OPER-PlMCO
7,585.28 DREYFUS TREASURY CASH MGMT 30-May-2000 -7,585.28
996085247 30-May-2000 7,585.28
B 0.00
LIQUID OPER-PIMCO
7,585.28 DREYFUS TREASURY CASH MGMT 30-May-2000 -7,585.28
996085247 30-May-2000 0.00
FC 30-May-2000 0.00
LONG TERM OPER-PlMCO
Jl,740.00 BSDT-1.ATF. MONEY DEPOSIT ACCT 31-May-2000 -31,740.00
996087094 3 l -May-2000 31,740,00
B 0.00
FIXED INCOME SECURITIES
LONG TERM OPER-PIMCO
2,500,000.00 US TREASURY NOTES OJ-Feb-2000 -2.413,480.4 J
9128275N8 06,000% 08115/2009 DD 08/15/ 15-May-2000 0.00
FC LEHMAN GOVT SECS INC, NY 15-May-2000 0.00
LONG TERM OPER-PlMCO
-10,000,000.00 COMMIT TO PUR GNMA 11 ARMS J 5-Mar-2000 9,898,437.50
16}1062651 6.500% 05/20/2030 24-May-2000 -9,898.437.50
BC BEAR STEARNS & CO INC, NY 0.00
11-J1111-2000 10:13:41 £n!c111iva lrorkbencft
@ ORANGE COUNTY SANITATION DISTRICT PAGE. 17
PORTFOLIO DETAIL
OCSGOOO 10000 01-MAY-2000-31-MAY-2000
OCSD-CONSOlIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY TD TRANSACTION DESCRIPTION/ SETTLOAT'E/ COST/
TRANSCODE BROKER COMPLDATE GACN/LOSS
LONG TERM OPER-PlMCO
-1,250,000.00 COMMIT TO PUR GNMA II ARMS 15-Mar-2000 1,238,671.88
16H06265 I 6.500% 05/20/2030 24-May-2000 -1.238,671-88
BC CREDIT SUISSE FIRST BOSTON C o.oo
LONG TERM OPER-PJMCO
J ,000,099.13 GNMA II POOL #0080395 15-Mar-2000 -991,035.73
36225CNM4 6.500% 04/20/2030 DD 041011 24-May-2000 99 1,035.73
B CREDIT SUISSE FIRST BOSTON C 0.00
LONG TERM OPER-PJMCO
l,000;099.13 GNMA II POOL #0080395 I 5-Mar-2000 -4,153.19
J6225CNM4 6.500% 04/20/2030 DD 04/0J/ 24-May-2000 0.00 m 0.00
LONG TERM OPER-PIMCO
1,000,099.13 GNMA ll POOL #0080395 l 5-Mar-2000 -995, 188.92
36225CNM4 6.500% 04/20/2030 DD 04/0J/ 24-May-2000 0.00
FC CREDIT SUISSE FIRST BOSTON C 24-May-2000 0.00
LONG TERM OPER-PIMCO
250,024.28 GNMA ll POOL #0080395 15-Mar-2000 -247,758.43
36225CNM4 6.500% 04/20/2030 DO 04/0 II 24-May-2000 247,758.43
B CREDIT SUISSE flRST BOSTON C 0.00
LONG TERM OPER-PrMCO
250,024.28 GNMA II POOL #0080395 15-Mar-2000 -l,038.30
36225CNM4 6.500% 04/20/2030 DD 0410 1/ 24-May-2000 0.00
IB 0.00
LONG TERM OPER-PfMCO
250,024.28 GNMA II POOL #0080395 15-Mar-2000 -248,796.73
36225CNM4 6.500% 04/20/2030 DD 04/0 I I 24-May-2000 0.00
FC CREDIT SUISSE PlRST BOSTON C 24-May-2000 0.00
J].J1111-2000 10·13:41 Executive Workbench
@ .~E COUNTY SANITATION 4· ~J. PAGE: 18
PORTFOLIO DETAIL
OCSG000/0000 01-MAY-2000 -31-MAY-2000
OCSD-CONSOL!DATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURlTY ID TRANSACTION DESCRlPTION/ SETTLDATE/ COST/
TRANSCODE BROKER J COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
561,077.00 GNMA fl POOL #080408X 15-Mar-2000 -555,378.56
36225CN28 6.500% 05/2012030 DD 05/01/ 24-May-2000 555,378.56
B BEAR STEARNS & CO INC, NY 0.00
LONG TERM OPER-PLMCO
561,077.00 ONMA II POOL #080408X l 5-Mar-2000 -2,330.03
3622SCN28 6.500% 05/20/2030 DD 051011 24-May-2000 0.00
IB 0.00
LONG TERM OPER-PJMCO
561,077.00 GNMA ll POOL #080408X 15-Mar-2000 -557,708.59
36225CN28 6.500% 05/20/2030 OD 05/0l/ 24-May-2000 0.00
FC BEAR STEARNS & CO INC, NY 24-May-2000 0.00
LONG TERM OPER-PJMCO
439,023.00 GNMA U POOL #080408X 15-Mar-2000 -434,564.17
36225CN28 6.500% 05/20/2030 DD 05/01/ 24-May-2000 434,564.17
B BEAR STEARNS & CO INC, NY 0.00
LONG TERM OPER·PIMCO
439,023.00 GNMA II POOL #080408X I 5-Mar-2000 -l ,823.16
36225CN28 6.500% 05/20/2030 DD 05/0l/ 24-May-2000 0.00
IB 0.00
LONG TERM OPER-PIMCO
439,023.00 GNMA II POOL #080408X 15-Mar-2000 -436,387.33
36225CN28 6.500% 0512012030 DD 05/01/ 24-May-2000 0.00
fC BEAR STEARNS & CO INC, NY 24-May-2000 0.00
LONG TERM OPER-PIMCO
438,523.00 GNMA II POOL #080408X I 5-Mar-2000 -434.069.25
36225CN28 6.500% 05/20/2030 DD 05/01/ 24-May-2000 434,069.25
B BEAR STEARNS & CO rNC, NY 0.00
I 2-Jun-2000 JO: 13 ./I EY:ecutive Wm·kbench
OCSGOOO 10000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANS CODE
438,523.00
36225CN28
18
438,523.00
36225CN28
FC
2,000,200.00
36225CN28
B
2,000,200.00
36225CN28
IB
2,000.200.00
36225CN28
FC
2,000,200.00
36225CN28
B
2,000,200.00
36225CN28
18
12..Jun-2000 JU 13:41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
Ol-MAY-2000 -31-MAY-2000
TRANSACTION DESCRIPTfON/
BROKER
LONG TERM OPER-PIMCO
GNMA ll POOL #080408X
6.500% 05/20/2030 DD 051011
LONG TERM OPER-PIMCO
ONMA TT POOL #080408X
6.500% 05/20/2030 DD 05/01/
BEAR STEARNS & CO INC, NY
LONG TERM OPER-PIMCO
GNMA II POOL #080408X
6.500% 05/20/2030 DD 05/01/
BEAR STEARNS & CO fNC, NY
LONG TERM OPER-PIMCO
GNMA II POOL #080408X
6.500% OS/20/2030 DD 05/01/
LONG TERM OPER-PIMCO
GNM/\ ll POOL #080408X
6.500% 05/20/2030 DD 05/01/
BEAR STEARNS & CO INC, NY
LONG TERM OPER-PIMCO
GNMA ll POOL #080408X
6.500% 05/20/2030 DD 05/01/
BEAR STEARNS & CO INC, NY
LONG TERM OPER-PIMCO
GNMA II POOL #080408X
6.500% 05/20/2030 DD 05/01/
TRADE DATE/
SETTLDATE/
COMPLDATE
15-Mar-2000
24-May-2000
15-Mar-2000
24-May-2000
24-May-2000
15-Mar-2000
24-May-2000
15-Mar·2000
24-May-2000
15-Mar-2000
24-May-2000
24-May-2000
I 5-Mar-2000
24-May-2000
15-Mar-2000
24-May-2000
PAGE 19
AMOUNT/
COST/
GAIN/LOSS
-1,821.09
0.00
0.00
-435,890.34
0.00
0.00
-1,979,885.4 7
I ,979,885.47
0.00
-8,306.39
0.00
0.00
-1 ,988, 191.86
0.00
0.00
-1,979,885.4 7
1,979,885.47 o.oo
-8,306.39
0.00
0.00
E~eculive Wnrkhc11ch
@ ORANGE COUNTY SANITATION Dlt, t "~.H1 PAGE: 20
PORTFOLIO DETAIL
OCSGOOO I 0000 01-MAY-2000-31-MA Y-2000
OCSD-CONSOL/DATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECUJUTY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
2,000,200.00 GNMA II POOL #080408X 15-Mar-2000 -1 ,988,191.86
36225CN28 6.500% 05/20/2030 DD 05/01/ 24-May-2000 0.00
re BEAR STEARNS & CO INC, NY 24-May-2000 0.00
LONG TERM OPER-PfMCO
4,000,400.00 GNMA II POOL #080408X l 5-Mar-2000 -3,959, 770.94
36225CN28 6 . .500% 05/20/2030 DD 05/01/ 24-May-2000 J,959, 770.94
B SEAR STEARNS & CO INC, NY 0.00
LONG TERM OPER-PIMCO
4,000,400.00 GNMA 11 POOL #080408X 15-Mar-2000 -16,612.77
36225CN28 6.500% 05/20/2030 DD 05/01/ 24-May-2000 0.00
lB 0.00
LONG TERM OPER-PIMCO
4.000,400.00 GNMA II POOL #080408X I 5-Mar-2000 -3,976,383.71
36225CN28 6.500% 0512012030 DD 05/01 / 24-May-2000 0.00
re BEAR STEARNS & CO INC, NY 24-May-2000 0.00
LONG TERM OPER-PIMCO
561,577.00 GNM/\ fl POOL #080408X 15-Mar-2000 -555,873.48
36225CN28 6.500% 05/20/2030 DD 05/01/ 24-May-2000 555,873.48
l3 BEAR STEARNS & CO INC, NY 0.00
LONG TERM OPER-PIMCO
561,577.00 GNMA U POOL #080408X l 5-Mar-2000 -2,332.10
36225CN28 6.500% 05/20/2030 DD 0510 1/ 24-May-2000 0.00
IB 0,00
LONG TERM OPER-PlMCO
561,577.00 GNMA U POOL #080408X 15-Mar-2000 -558,205.58
36225CN28 6.500% 05/20/2030 DD 051011 24-May-2000 0.00
FC BEAR STEARNS & CO TNC, NY 24-May-2000 0.00
!2-Jun-2000 JO: 13:41 Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOL!DATED
SHARES/PAR
SECURITY ID
TR.\NSCODE
3,000,000,00
OIN0726SS
FC
I 0,500,000.00
OJN062656
FC
11 ,000,000.00
01N062656
FC
2,000,000.00
01N080658
FC
6,250,000.00
01N060650
FC
1,600,00MO
020002AL5
FC
2,000,000.00
OIN080666
B
12-Jun-2000 I 0: 13:41
II ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000 -31-MAY-2000
TRANSACTION DESCRIPTION/
BROKER I
LONG TERM OPER-PIMCO
COMMIT TO PUR GNMA SF MTG
7.500% 05/I 5/2029
CR£D1T SUISSE FIRST BOSTON C
LONG TERM OPER-PlMCO
COMMIT TO PUR GNMA SF MTG
6.500% 05/15/2030
MERRILL LYNCH PlERCE FENNER
LONG TERM OPER-PIMCO
COMMIT TO PUR GNMA SF MTG
6.500% 05/1512030
BEAR STEARNS & CO INC, NY
LONG TERM OPER-PIMCO
COMMIT TO PUR GNMA SF MTG
8.000% 05/15/2030
BEAR STEARNS & CO INC, NY
LONG TERM OPER-PIMCO
COMMIT TO PUR GNMA r SF
6.000% 05/15/2029
GOLDMAN SACHS & CO, NY
LONG TERM OPER-PJMCO
ALLSTATE CORP SR NT
7.875% 05/01/2005 DD 0510110
MORGAN STANLEY & CO INC, NY
LONG TERM OPER-PTMCO
COMMIT TO PUR GHMA SF MTG
8.000% 06/15/2030
BEAR STEARNS & CO INC, NY
TRADE DATE/
SETTLDATE/
COMPLDATE
2 I -Mar-2000
22-May-2000
22-May-2000
12-Apr-2000
22-May-2000
22-May-2000
12-Apr-2000
22-May-2000
22-May-2000
l 3-Apr-2000
22-May-2000
22-May-2000
l 3-Apr-2000
22-May-2000
22-May-2000
26-Apr-2000
Ol-May-2000
0 l -May-2000
03-May-2000
22-Jun-2000
PAGE: 21
AMOUNT/
COST/
GAIN/LOSS
-2,952, 187.50
0.00
0.00
-9,945.468. 75
o.oo
0.00
-I 0,422,500.00
0.00
0.00
-2,023,125.00
0.00
0.00
-5, 755.859.38
0.00
0.00
-1 ,594,032.00
0.00
0.00
-1 ,997,500,00
1,997,500.00
0.00
Executive Workbench
OCSGOOO I 0000
OCSD-CONSOU DATED
SHARES/PAR
SECURITY JD
TRANS CODE
11,000,000.00
OJN062664
B
I 0,500.000.00
OIN062664
B
3,600,000.00
9128274T6
B
3,600,000.00
9128274T6
IB
3,600,000.00
9128274T6
FC
6,250,000.00
OIN060668
B
575,000.00
30241NMV4
B
I~ r. .. , 1flll/1 /fl• I~../ I
I! ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000 -31-MAY-2000
TRANSACTION DESCRJPTJON/
BROKER
LONG TERM OPER-PlMCO
COMMIT TO PUR GNJ\llA SF MTG
6.500% 06/ 15/2029
BEAR STEl\RNS & CO lNC, NY
LONG TERM OPER-PIMCO
COMM! r TO PUR GNMA SF MTG
6.500% 06/l -/2029
MERRfLL V1'NCH PIERCE FENNER
LIQUID OPER-PIMCO
US TREASURY NOTES
04.000'~o I 0/31/2000 OD I 0131 /
CREDIT SUISSE FfRST BOSTON C
LIQUID OPER-PIMCO
U S TREASURY NOTES
04.000% I 0/3 I /2000 DD I O/J II
LlQUfD OPER-PIMCO
US TREASURY NOTES
04.000% l 0/3 1/2000 DD I 0/311
CREDfT SUISSE FIRST BOSTON C:
LONG TERM OPER-PIMCO
COMM rt TO PUR GNMA SF MTG
6.000% 06/15/2029
GOLDMAN SACHS & CO, NY
LIQUID OPER-PJMCO
FCC NA TI. BK DE MTN #TR 0028
6.375% 03/J 5/2001 DD 03/14/9
ADVEST CO, HARTFORD
TRADE DATE/
SETTLDATE/
COMPLDATE
08-May-2000
22-Jun-2000
15-May-2000
22-Jun-2000
16-May-2000
l 7-May-2000
16-May-2000
17-May-2000
16-May-2000
I 7-May-2000
l 7-May-2000
16-May-2000
22-Jun-2000
l 9-May-2000
24-May-2000
PAGE: 22
AMOUNT/
COST!
GAIN/LOSS
-I 0, 144,062.50
10, 144,062.50
0.00
-9,673, 125.00
9,673,125.00
0.00
-3,558,656.25
3,558,656.25
0.00
-6,652. l 7
0.00
0.00
-3,565,308.42
0.00
0.00
-5,605,468. 75
5,605,468.75
0.00
-570,262.00
570,262.00
0.00
£xec11tive WQ1'kbenr;h
@ ORANGE COUNTY SANITATION DISTRICT ll PAGE: 23
PORTFOLIO DETAIL
OCSGOOO I 0000 01-MAY-2000 -31-MAY-2000
OCSD-CONSOLTDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPL l>ATE GAIN/LOSS
LIQUID OPER-PIMCO
575,000.00 FCC NATL BK DE MTN ii TR 0028 l 9-May-2000 -7,025.78
30241NMV4 6.3 75% 03/15/200 I DD 03/l 419 24-May-2000 0.00
U3 0.00
LIQUID OPER-PIMCO
575,000.00 FCC NATL BK DE MTN# TR 0028 I 9-May-2000 -577,287.78
30241NMV4 6.375% 03/15/200 1 DD0311419 24-May-2000 0.00
FC ADVEST CO, HARTFORD 24-May-2000 0.00
LlQUID OPER-PIMCO
3,000,000.00 U S TREASU RY NOTES 22-May-2000 ·2,968, J 25.00
9128274T6 04.000% 10/3 1/2000DD10/31/ 22-May-2000 2,968,125.00
B BANK OF NY BARCLAYS DE ZOETE 0.00
LIQUID OPER-PlMCO
3,000,000.00 US TREASURY NOTES 22-May"2000 -7, 173 .91
9128274T6 04.000% 10/3 1/2000 DD 10/3 1/ 22-May-2000 0.00
IB 0.00
LIQUID OPER-PIMCO
3,000,000.00 U S TREASURY NOTES 22-May-2000 -2,975,298.91
9128274T6 04.000% 10/31/2000 DD 10/31/ 22-May-2000 0.00
FC BANK OF NY BARCLAYS DE ZOETE 22-May-2000 0.00
LIQUID OPER-PlMCO
420,000.00 BANKAMERICA CORP SR NT 23-May-2000 -417,034.80
066050CJ2 6.650% 05101/200 I DD 05/01 /9 26-May-2000 417,034.80
B ADVESTCO,HARTFORD 0.00
LIQUID OPER-PIMCO
420,000.00 BANK.AMERLCA CORP SR NT 23-Mny-2000 ·1,93958
066050CJ2 6.650% 05/01/2001 DD 0510119 26-May-2000 0.00
LB 0.00
/2-Jrm-2000 10:/3:41 Executive Workbench
OCSGOOOJOOOO
OCSD-CONSOLIDATED
PAY UPS
SHARES/PAR
SECURITYlD
TRANSCODE
420,000.00
066050CJ2
FC
1,000,000.00
25766CAL8
B
1,000,000.00
25766CAL8
lB
1,000,000.00
25766CAL8
FC
FLXED INCOME SECURITIES
8,250.00
9128275W8
PU
8,250.00
9128275W8
FC
/2-J1m-2000 10:13:41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000 -31-MAY-2000
TRANSA,.CTlON DESCRIPTION/
BROKER
LIQUID OPER-PltvfCO
BANKAMERJCA CORP SR NT
6.650% 05/0l/2001DD0510119
ADVESTCO,HARTFORO
LlQUrD OPER-PIMCO
DONALDSON LUFKIN & JEN TROOO
6.110% 05/1512001 DD 0512119
PRUDENTlAL SEC INC, NEW YORK
LIQUID OPER-PIMCO
DONALDSON LUFKIN & JEN TROOO
6.110% 05/15/2001 PD 05/27/9
LIQUID OPER-PIMCO
DONALDSON LUFKJN & JEN TROOO
6.110% 0511512001 DD 05/27 /9
PRUDENTIAL SEC INC, NEW YORK
LONG TERM OPER-PIMCO
US TREASURY fNFLA TION INDEX
4.250%001115/2010 DD 01/15/
LONG TERM OPER-PIMCO
US TREASURY INFLATION INDEX
4.250%001/15/2010 DD OJ/15/
TRADE DATE/
SETTLDATE/
COMPLDATE
23-May-2000
26-May-2000
26-May-2000
24-May-2000
30-May-2000
24-May-2000
30-May-2000
24-May-2000
30-May-2000
30-May-2000
15-Jan-2000
15-Jan-2000
l 5-Jan-2000
l 5-Jan-2000
3 l-May-2000
PAGE: 24
AMOUNT/
COST/
GAJN/LOSS
-418,974.38
0.00
0.00
-987,060.00
987,060.00
0.00
·2,545.83
0.00
0.00
-989,605.83
o.oo
0.00
-8,250.00
8,250.00
0.00
-8,250.00
0.00
0.00
Executive Workbench
OCSGOOOJ 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURlTY ID
TRANS CODE
201,480.00
9128272M3
PU
201,480.00
9128272M3
FC
71,094.00
9128273A8
PU
71,094.00
9128273A8
FC
15, 137.50
79549BBG1
PU
15,137.50
79549BBGI
FC
2.50
3 l33TCE95
PU
/2-Jun-2000 10:13:41
ll ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
Ol-MAY-2000-31-MAY-2000
TRANSACTION DESCRIPTION/
BROKER I
LONG TERM OPER-PIMCO
US TREASURY INFLATION INDEX
3.375% 01/15/2007 DD 01/15/
LONG TERM OPER-PlMCO
US TREASURY INFLATION INDEX
3.375% 01/15/2007 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/J 5/2002 DD 07/15/
LONGTERM OPER-PIMCO
SALOMON SMJTH BARNEY HLDGS T
3.650% 02/1412002 DD 02/14/
LONG TERM OPER-PIMCO
SALOMON SMITH BARNEY HLDGS l
3.650% 02/14/2002 DD 02/14/
LONG TERM OPER-PTMCO
FHLMC MULTICLASS CTF E3 A
V ARRT 08115/2032
TRADE DATE/
SETTLDATE/
COMPLDATE
I 5-Jan-2000
l 5-Jan-2000
t 5-Jan-2000
l 5-Jan-2000
31-May-2000
15-Jan-2000
I 5-Jan-2000
I 5-Jan-2000
J 5-Jan-2000
3 l-May-2000
14-Feb-2000
l 4-Feb-2000
14-Feb-2000
14-Feb-2000
31-May-2000
0 l-May-2000
Ol-May-2000
ii .
PAGE: 25
AMOUNT/
COST/
GAIN/LOSS
-201,480.00
201.480.00
0.00
-20 1,480.00
0.00
0.00
-71,094.00
71 ,094.00
0.00
-71 ,094.00
0.00
0.00
-15,137.50
15, 137.50
0.00
-15,137.50
0.00
0.00
-2.50
2.50
0.00
Executive Workbench
OCSGOOO I 0000
OCSD-CONSOLJDATED
SALES
SHARES/PAR
SECURITY ID
TRANS CODE
2.50
313JTCE95
FC
12,1 12.81
3133Tl7A4
PU
12,112.81
3l33Tl7A4 re
CASH & CASH EQUIVALENTS
-1 ,400,000.00
313588WK7 s
-1.400,000.00
313588WK7
IS
-1,400,000.00
3l3588WK7
FC
12-Jim-2000 10:13:41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000 -31-MAY-2000
TRANSACTION OESCRJPTION/
BROKER
LONG TERM OPER-PIMCO
FHLMC MlJL Tl CLASS CTF 83 A
VAR RT 08115/2032
LONG TERM OPER-PlMCO
FHLMC MUL TICLASS CTF SER 162
6.000% 11/15/2023 DD ll/O 1/9
LONG TERM OPER-PIMCO
FHLMC MULTI CLASS CTF SER 162
6.000% I 1/15/2023 DD 11/01/9
LONG TERM OPER-PIMCO
FEDERAL NATL MTG ASSN DISCOU
MATURES 05/04/2000
HSBC SECS INC, NEW YORK
LONG TERM OPER-PIMCO
FEDERAL NATL MTG ASSN DI SCOIJ
MA TURES 05/04/2000
LONG TERM OPER·PIMCO
FEDERAL NATL MTG ASSN DfSCOU
MATURES 05/04/2000
HSBC SECS INC, NEW YORK
TRADE DATE/
S'ETTL DATE/
COMPLDATE
Ol-May-2000
0 l-May-2000
I 5-May-2000
0 l-May-2000
01-May-2000
01-May-2000
0 l-May-2000
23-May-2000
02-May-2000
02-May-2000
02-May-2000
02-May-2000
02-May-2000
02-May-2000
02-May-2000
PAGE: 26
AMOUNT/
COST/
GAJN/LOSS
-2.50
0.00 o.oo
-12,1 12.81
12,112.81
0.00
-12,112.RI
0.00
0,00
1.386,016.80
-1,386,015.55
l.25
13,525.87
0,00
0.00
1,399,:542.67
0.00
0.00
Executive Workbe11c/1
OCSGOOO J 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
-1,825.4 l
996087094
s
-428.52
996087094 s
-4.25
996085247
s
·4.25
996085247
FC
-l,563,476.14
996085247
s
-1 ,563,476. 14
996085247
FC
-5,986.07
996087094 s
IJ-J1m-1000 10:13:41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000 -31-MAY-2000
TRANSACTION DESCRIPTlON/
BROKER
LONG TERM OPER-PIMCO
BSDT-LATE MONEY DEPOSIT ACCT
LIQUID OPER-PlMCO
BSDT-LA 1'E MONEY DEPOSIT ACCT
LIQUJD OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PJMCO
BSDT-LATE MONEY DEPOSlT ACCT
TRADE DATE/
SETTLDATE/
COMPLDATE
03-May-2000
03-May-2000
03-May-2000
03-May-2000
04-May-2000
04-May-2000
04-May-2000
04-May-2000
04-May-2000
12-May-2000
12-May-2000
12-May-2000
12-May-2000
12-May-2000
16-May-2000
l 6-May-2000
PAGE: 27
AMOUNT/
COST/
GAfN/LOSS
1,825.41
-1,825.41
0.00
428.52
-428.52
0.00
4.25
-4.25
0.00
4.25
0.00
0.00
1,563,476.14
-1,563,476.14
0.00
1,563,476.14
0.00
0.00
5,986.07
-5,986.07
0.00
Executive Work.bench
OCSGOOO 10000
OCSD-CONSOLIDATED
SHARES/PAR
SECURJTY ID
TRANSCODE
-56,714.71
996087094
s
-64,736.75
996085247 s
-64,736.75
996085247
PC
-3,500,000.00
99369J683 s
-3,500,000.00
993691683
IS
-3,500,000.00
99369J683
FC
-206,654.53
996085247 s
Jl-.flm-2000 10:13:41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000 -31-MAY-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
BSDT-LATE MONEY DEPOSIT ACCT
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LlQUID OPER-PIMCO
LEHMAN SROTHERS REPO
05.880% 05/J 7/2000 DD 051161
LEHMAN BROS INC, NEW YORK
LIQUID OPER-PIMCO
LEHMAN BROTHERS REPO
05.880% 05/17/2000 DD 051161
LIQUID OPER-PrMCO
LEHMAN BROTHERS REPO
05.880% 05/17/2000 DD 05/16/
LEHMAN BROS INC, NEW YORK
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
TRADE DATE/
SETTLDATE/
COMPLDATE
l 7-May-2000
17-May-2000
17-May-2000
I 7-May-2000
I 7-May-2000
l 7-May-2000
l 7-May-2000
17-May-2000
I 7-May-2000
17-May-2000
l 7-May-2000
l 7-May-2000
17-May-2000
I 7-May-2000
18-May-2000
l 8-May-2000
II PAGE: 28
AMOUNT/
COST/
GAIN/LOSS
56,714.71
-56,714.71
0.00
64,736.75
-64,736.75
0.00
64,736.75
0.00
0.00
3,500,000,00
-3,500,000.00
0.00
571.67
0.00
0.00
3,500.571.67
0.00
0.00
206;654.53
-206,654.53
0.00
Executive Workbench
OCSGOOO I 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
·206,654.53
996085247
FC
-33,299.17
996085247
s
-33,299.17
996085247
FC
-106,898.4 7
996085247
s
-l 06,898.47
996085247
FC
-13,000,000.00
99369M884
s
-13,000,000.00
99369M884
IS
12-Jun-2000 10:13:41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000-31-MAY-2000
TRANSACTlOJlf DESCRlPTCON/
BROKER
LONG TERM OPER-PlMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PlMCO
DREYFUS TREASURY CASH MGMT
LONG TERM OPER-PrMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PIMCO
CREDIT SUlSSE FST REPO
06.050% 05/22/2000 DD 05/19/
CREDIT SUISSE FIRST BOSTON C
LIQUID OPER-PlMCO
CREDIT SUISSE FST REPO
06.050% 0512212000 DD 051191
TRADE DATE/
SETTLDATE/
COMPLDATE
18-May-2000
l 8-May-2000
18-May-2000
J 9-May-2000
19-May-2000
19-May-2000
19-May-2000
19-May-2000
22-May-2000
22-May-2000
22-May-2000
22-May-2000
22-May-2000
22-May-2000
22-May-2000
22-May-2000
22-May-2000
PAGE: 29
AMOUNT/
COST/
GAIN/LOSS
206,654 53
0.00
0.00
33,299.17
-33,299.17
0.00
33,299.17
0.00
0.00
t06,898.47
-106,898.47
0.00
106,898.47
0.00
0.00
13,000,000.00
-1 3.000,000.00
0.00
6,554.17
0.00
0.00
Executive Workbench
OCSG000/0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANS CODE
-13,000,000.00
99369M884
FC
-66,777.00
996085247
s
-66,777.00
996085247
FC
-5,000,000.00
99369Pl92 s
-5,000,000.00
99369Pl92
IS
-5,000,000.00
99369PI92
PC
-87,898.92
996085247
s
12-Jun-2000 10:13:41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000-31-MAY-2000
TRANSACTION DESCRIPTION/
BROKER
UQUID OPER-PIMCO
CREDIT SUISSE FST REPO
06.050% 05/22/2000 DD 05/19/
CREDIT SUISSE FIRST BOSTON C
LIQUID OPER-PlMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
LIQUID OPER-PIMCO
LEHMAN BROTHERS REPO
06. I 50% 05/23/2000 DD 05/22/
LEHMAN BROS INC, NEW YORK
LIQUID OPER-PIMCO
LEHMAN BROTHERS REPO
06.150% 05/23/2000 DD 05/22/
LIQUID OPER-PIMCO
LEHMAN BROTHERS REPO
06. 1 50% osm12000 DD osm1
LEHMAN BROS INC, NEW YORK
LONG TERM OPER-PIMCO
DREYFUS TREASURY CASH MGMT
TRADE DATE/
SETTL DATE/
COMPLDATE
22-May-2000
22-May-2000
22-May-2000
23-May-2000
23-May-2000
23-May-2000
23-May-2000
23-May-2000
23-May-2000
23-May-2000
23-May-2000
23-May-2000
23-May-2000
23-May-2000
23-May-2000
24-May-2000
24-May-2000
PAGE: 30
AMOUNT/
COST/
GAIN/LOSS
I 3,006,554.17
0.00
0.00
66.777.00
-66,777.00
0.00
66,777.00
0.00
0.00
5,000,000.00
-5,000,000.00
0.00
854.17
0.00
0.00
5,000,854.17
0.00
0.00
87,898.92
-87,898.92
0.00
Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 31
PORTFOLIO DETAIL
OCSGOOO I 0000 01-MAY-2000 -31-MAY-2000
OCSD-CONSOLJDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SEC URITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
-87,898.92 DREYFUS TREASURY CASH MGMT 24-May-2000 87,898.92
996085247 24-May-2000 0.00
FC 24-May-2000 0.00
LONG TERN! OPER-PIMCO
-2, 100,000.00 FEDERAL NATL MTG ASSN DISC 24 -May-2000 2,090,053 .00
3 13588XP5 MAT 06/0 1/2000 24-May-2000 -2,090,053.00
s CREDIT SUISSE F1RST BOSTON C 0.00
LONG TERM OPER-PIMCO
~2, I 00,000.00 FEDERAL NATL MTG ASSN DISC 24-May-2000 6,993.00
313588XP5 MAT06/0J/2000 24-May-2000 0.00
IS 0.00
LONG TERM OPER-PIMCO
-2, I 00,000.00 FEDERAL NATL MTG ASSN DlSC 24-May-2000 2,097,046.00
313588XP5 MAT 06/0112000 24-May-2000 0.00
FC CREDIT SUTSSE FrRST BOSTON C 24-May-2000 0.00
LONG TERM OPER-PIMCO
-1 ,900,000.00 FEDERAL HOME LN MTG CORP DIS 25-May-2000 1,893,792.81
3JJ396XN8 MAT 05/31/2000 25-May-2000 -1,893, 792.81
s MERRILL LYNCH PIERCE FENNER 0.00
LONG TERM OPER-PIMCO
-1,900,000.00 FEDERAL HOME LN MTG CORP DIS 25-May-2000 4,215.36
3!3396XN8 MAT 05/31/2000 25-May-2000 0.00
IS 0.00
LONG TERM OPER-PIMCO
-l ,900,000.00 FEDERAL HOME LN MTG CORP ors 25-May-2000 1,898,008. I 7
313396XN8 MAT 05/3 l /2000 25-May-2000 0.00
FC MERRILL LYNCH PIERCE FENNER 25-May-2000 0.00
12..Jrm-WOO 10:13:41 Executive Wt>rkh1111ch
@ ORAN(;I:., COUNTY SANITATION DISTRICT PAGE: 32
PORTFOLIO DETAIL
OCSGOOO I 0000 01 -MAY-2000 -31-MAY-2000
OCSD-CONSOL!DATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPL DATE GAIN/LOSS
LONG TERM OPER-PlMCO
-2,400,000.00 FEDERAL NATL MTG ASSN DISC 25-May-2000 2,388,632.00
313588XP5 MAT 06/01/2000 25-May-2000 -2,388,632.00 s MERRILL LYNCH PIERCE FENNER 0.00
LONG TERM OPER~PIMCO
-2,400,000.00 FEDERAL NATL MTG ASSN DISC 25-May-2000 8,4l8.67
313588XP5 MAT 0610112000 25-May-2000 0.00
JS 0.00
LONG TERM OPER-PIMCO
-2,400,000.00 FEDERAL NATL MTG ASSN DISC 25-May-2000 2,397,050,67
313588XP5 MAT 06/0112000 25-May-2000 0.00
FC MER.RILL LYNCH PIERCE FENNER 25-May-2000 0.00
LONG TERM OPER-PIMCO
-l,900,000.00 BECTON DICKINSON DISC 25-May-2000 l,882, 178.00
07588RF26 06/02/2000 25-May-2000 -1,882,178.00
s GOLDMAN SACHS & CO, NY 0.00
LONG TERM OPER-PIMCO
-1,900,000.00 BECTON DICKINSON DISC 25-May-2000 T5,056.44
07588RF26 06/02/2000 25-May-2000 0.00
JS 0.00
LONG TERM OPER-PJMCO
-l,900,000.00 BECTON DICKINSON DISC 25-May-2000 1,897 ,234.44
07588RF26 06/02/2000 25-May-2000 0.00
FC GOLDMAN SACHS & CO, NY 25-May-2000 0.00
LIQUID OPER-PlMCO
-1 8,974.38 DREYFUS TREASURY CASH MGMT 26-May-2000 18,974.38
996085247 26-May-2000 -18,974.38
s o.oo
12-.fun-2000 10.13:41 ExecuJive Workbench
@ ORANGE COUNTY SANITATION DISTRICT II . PAGE: 33
PORTFOLIO DETAIL
OCSGOOO I 0000 01-MAY-2000 -31-MAY-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURlTYTD TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMl'LDATE GAIN/LOSS
LIQUID OPER-PIMCO
-18,974.38 DREYFUS TREASURY CASH MGMT 26-May-2000 18,974.38
996085247 26-May-2000 0.00
FC 26-May-2000 0.00
LONG TERM OPER-PIMCO
-5,600,000.00 BECTON DICKINSON DISC 26-May-2000 5,547,472.00
07588RF26 06/02/2000 26 -May-2000 -5,547,472.00
s GOLDMAN SACHS & CO, NY 0.00
LONG TERM OPER-PlMCO
·5,600,000.00 BECTON DICKINSON DISC 26-May-2000 45,395 .78
07588RF26 06/02/2000 26-May-2000 0.00
JS 0.00
LONG TERM OPER-PIMCO
-5.600,000.00 BECTON DICKINSON DISC 26-May-2000 5,592,86 7. 78
07588RF26 06/02/2000 26-May-2000 0.00
fC GOLDMAN SACHS & CO, NY 26-May-2000 0.00
LIQUID OPER-PIMCO
-1,000,000.00 FEDERAL HOME LN BK CONS DISC 26-May-2000 995,956.00
313384YD5 MAT 06/15/2000 30-May-2000 -995,955.83
s CREDIT SUISSE FIRST BOSTON C 0.17
LIQUID OPER-PlMCO
-1,000,000.00 FEDERAL HOME LN .BK CONS DISC 26-May-2000 1,235,11
313384YD5 MAT 06/ 15/2000 30-May-2000 0.00
IS 0.00
LJQUID OPER-PIMCO
-1,000,000.00 FEDERAL HOME LN BK CONS DISC 26-May-2000 997,191.11
313384YD5 MAT 0611512000 30-May-2000 0.00
FC CREDIT SUISSE F1RST BOSTON C 30-May-2000 0.00
12-Jun-2000 10:/3:41 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE.-34
PORTFOLIO DETAIL
OCSGOOO I 0000 01-MAY-2000 -31-MAY-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATEI COST/
TRANS CODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
-2,652.12 DREYFUS TREASURY CASH MGMT 31-May-2000 2,652.12
996085247 3 l-May-2000 -2,652.12 s 0.00
LONG TERM OPER-PIMCO
-2,652.12 DREYFUS TREASURY CASH MGMT 3 l-May-2000 2,652.12
996085247 3!-May-2000 0.00
PC 31-May-2000 0.00
FIXED TNCOM.li: SECURITIES
LONG TERM OPER-PIMCO
-2,500,000.00 US TREASURY NOTES 08-Feb-2000 2,417,197.91
912S275N8 06.000% 08/15/2009 DO 08/15/ I 5-May-2000 0.00
FC LEHMAN GOVT SECS INC, NY 1 S-May-2000 0.00
LONG TERM OPER-PJMCO
-3,000,000,00 COMMIT TO PUR GNMA SF MTG 22-Mar-2000 2,953,593.75
OIN0726SS 7 .500% 05115/2029 22-May~2000 0.00
FC CREDIT SUISSE FfRST BOSTON C 22-May-2000 0.00
LONG TERM OPER-PlMCO
-325,600.00 GNMA POOL #0528728 13-Apr-2000 329,975.25
36212BLH4 8.000% 04/15/2030 DD 04/01/ !9-Apr-2000 -326,770.13
s BEAR STEARNS & CO INC, NY 3,205.12
LONG TERM OPER-PJMCO
-325,600.00 GNMA POOL #0528728 13-Apr-2000 1,302.40
36212BLH4 8.000% 04/15/2030 DD 041011 19-Apr-2000 0.00
IS 0.00
LONG TERM OPER-PIMCO
-325,600.00 GNMA POOL #0528728 I 3-Apr-2000 33 1,277.65
36212BLH4 8.000% 04115/2030 DD 04/0 II 19-Apr-2000 0.00
FC BEAR STEARNS & CO INC, NY I O-May-2000 0.00
/ 2-Jun-2000 I 0: 13: 41 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 35
PORTFOLIO DETAIL
OCSGOOO I 0000 01-MA Y-2000 -31-MAY-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PJMCO
-335,990.00 GNMA POOL #0522128 13-Apr-2000 340,504.87
362l ITA54 8.000% 04115/2030 DD 04/0l/ ! 9-Apr-2000 -337,197.46 s BEAR STEARNS & CO INC, NY 3,307.41
LONG TERM OPER-PJMCO
-335,990.00 GNMA POOL #0522128 I 3-Apr-2000 1,343.96
36211TA54 8.000% 04/15/2030 DD 04/0 I/ l 9-Apr-2000 0.00
JS 0.00
LONG TERM O:PER-PJMCO
-335,990.00 GNMA POOL #0522128 l 3-Apr-2000 341,848.83
3621 ITA54 8.000% 04/15/2030 DD 04/01/ l 9-Apr-2000 0.00
FC BEAR STEARNS & CO fNC, NY 1 O-May-2000 0.00
LONG TERM OPER-PIMCO
-288,590.00 GNMA POOL 110479288 13-Apr-2000 292,467.93
36209RND1 8.000% 04115/2030 DD 041011 t 9-Apr-2000 -289,627.12
s BEAR STEARNS & CO INC, NY 2,840.81
LONG TERM OPER-PIMCO
-288,590.00 GNMA POOL #0479288 13-Apr-2000 l,1:54.36
36209RND I 8.000% 04/15/2030 DD 04/01/ l 9-Apr-2000 0.00
IS 0.00
LONG TERM OPER-PlMCO
-288,590.00 GNMA POOL #0479288 13-Apr-2000 293,622.29
36209RNDI 8.000% 04/1512030 DD 04/01/ I 9-Apr-2000 0.00
FC BEAR STEARNS & CO fNC, NY I 0-May-2000 0.00
LONG TERM OPER-PIMCO
-338,310.00 GNMA POOL #0479289 l3-i\.prT2000 342,856.04
36209RNE9 8.000% 04/15/2030 DD 04/01 / I 9·Apr-2000 -339,525.80
s BEAR STEARNS & CO INC, NY 3,330.24
12-Jun-2000 10:13:.JI Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 36
PORTFOLIO DETAIL
OCSGOOO I 0000 01 -MAY-2000 -31-MAY-2000
OCSD-CONSOl!DATED
SHARES/PAR TRADE DATE/ AMOU NT/
SECURITY ID TRA NSA.CTlON DESCRIPTION/ SETTL DATE/ COST/
TRANS CODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
-338,3 10.00 GNMA POOL #0479289 l 3-Apr-2000 l,353.24
36209RNE9 8.000% 04115/2030 DD 04/0 t/ 19-Apr-2000 0.00
rs 0.00
LONG TERM OPER-PJMCO
-338,3 J 0.00 GNMA POOL #0479289 13-Apr-2000 344,209.28
36209RNE9 8.000% 04/15/2030 DD 04/01/ 19-Apr-2000 0.00
FC BEAR STEARNS & CO JNC, NY 10-May-2000 0.00
LONG TERM OPER-PIMCO
-404,685.00 GNMA POOL #0524743 l 3-Apr-2000 410,122.95
36211 V5CO 8.000% 04/l5/2030 DD 041011 l 9-Apr-2000 -406, 139.34
s BEAR STEARNS & CO INC, NY 3,983.61
LONG TERM OPER-PIMCO
-404,685.00 GNMA POOL #0524743 13-Apr-2000 1,618.74
362 11 V5CO 8.000% 0411512030 DD 04/01/ l 9-Apr-2000 0.00
IS 0.00
LONG TERM OPER-PIMCO
-404,685.00 GNMA POOL #0524 743 13-Apr-2000 41 J'741.69
3621 IV5CO 8.000% 04/J 5/2030 DD 04/0 1/ 19-Apr-2000 0.00
FC BEAR STEARNS & CO INC, NY !0-May-2000 0.00
LONG TERM OPER·P!MCO
-5,000,000.00 US TREASURY NOTES 27-Apr-2000 5,012,645.15
912827262 06.500% 10/15/2006 DD 101151 o 1-May-2000 0.00
FC MORGAN STANLEY & CO INC, NY 0 I -May-2000 0.00
LONG TERM OPER-PTMCO
-2,000,000.00 COMMIT TO PUR GNMA SF MTG 03-May-2000 1,000,000.00
O!N080658 8.000% 05/15/2030 22-May-2000 -2,023,125.00
s BEAR STEARNS & CO INC, NY -23,125.00
fl-11111-2000 10:/3;41 Executive Workbench
OCSGOOO 10000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY TD
TRANSCODE
-2,000,000.00
01N080658
FC
-11,000.000.00
OIN062656
s
-11,000,000.00
01N062656
FC
-3,500,000.00
9128274Q2 s
-3 ,500,000.00
9128274Q2
IS
-3,500,000.00
9128274Q2
FC
-10,500,000.00
OIN062656 s
12-Jun-2000 10:13:41
ORANGE COUNTY SANITATIONDISTRJCT
PORTFOLIO DETAIL
Ol-MAY-2000 -31-MA Y-2000
TRANSACTION DESCRJPTTON/
BROKER
LONG TERM OPER-PTMCO
COMMIT TO PUR ONMA SF MTG
8.000% 0511512030
BEAR STEARNS & CO JNC, NY
LONG TERM OPER-PJMCO
COMMIT TO PUR GNMA SF MTG
6.500% 0511512030
BEAR STEARNS & CO lNC, NY
LONG TERM OPER-PIMCO
COMMIT TO PUR GNMA SF MTG
6.500% 05/15/2030
BEAR STEARNS & CO INC, NY
LIQUID OPER-PlMCO
US TREASURY NOTES
05. I 25% 08/31/2000 DD 081311
WARBURG DILLON READ LLC, NEW
LIQUID OPER-PIMCO
U S TREASURY NOTES
05.125% 08/31/2000 DD 08/3 1/
LIQUID OPER-PIMCO
US TREASURY NOTES
05.125% 08/31/2000 DD 08/3 l/
WARBURG DILLON READ LLC, NEW
LONG TERM OPER-PIMCO
COMMIT TO PUR GNMA SF MTG
6.500% 05/15/2030
MERRILL LYNCH PIERCE FENNER
TRADE DATE/
SETTLDATE/
COMPLDATE
03-May-2000
22-May-2000
22-May-2000
08-May-2000
22-May-2000
08-May-2000
22-May-2000
22-May-2000
15-May-2000
l 6-May-2000
l 5-May-2000
16-May-2000
15-May-2000
l 6-May-2000
I 6-May-2000
15-May-2000
22-May-2000
II PAGE: 37
AMOUNT/
COST/
GAIN/LOSS
2,000,000.00
0.00
0.00
I 0, 149.648.44
-I 0,420,821.22
-271,172.78
10, 149,648.44
0.00
0.00
3,486, 738.28
-3 .4 83 '4 s 7. 03
3,281.25
37,532.27
0.00
0.00
3,524,270.55
0.00
0.00
9,679,277.34
-9,947, l4 7.53
-267,870. I 9
Executive Workbench
OCSGOOO 10000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
-l 0,500,000.00
OIN062656
FC
-6,250,000.00
01N060650
s
-6,250,000.00
OIN060650
FC
PRINCIPAL PAYMENTS
FIXED INCOME SECURITIES
-4,489.10
31348SWZ3
FC
34,076.00
3133TCE95
PDC
-34,078.50
3133TCE95
PD
,., '··~ ?nnn l()·/3:41
ORANGE COUNTY SANJTA TJON DISTRICT
PORTFOLIO DETAIL
Ol-MAY-2000 -31-MAY-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PJMCO
COMMIT TO PUR GNMA SF MTG
6.500% 05/15/2030
MERRlLL LYNCH PIERCE FENNER
LONG TERM OPER-PIMCO
COMMJT TO PUR GNMA I SF
6.000% 05/15/2029
GOLDMAN SACHS & CO, NY
LONG TERM OPER-PTMCO
COMMIT TO PUR GNMA I SF
6.000% 05/15/2029
GOLDMAN SACHS & CO, NY
LONG TERM OPER-PlMCO
FHLMC GROUP #78-6064
6.384%01/01/2028 DD 12/01/
LONG TERM OPBR-PIMCO
FHLMC MUL TIC LASS CTF E3 A
VAR RT 08/15/2032
LONG TERM OPER-PIMCO
FHLMC MUL Tl CLASS CTF E3 A
VAR RT 08/1512032
TRADE DATE/
SETTL DATE/
COMPLDATE
15-May-2000
22-May-2000
22-May-2000
16-May-2000
22-May-2000
16-May-2000
22-May-2000
22-May-2000
0 l-Apr-2000
01-Apr-2000
IS-May-2000
0 l-Apr-2000
01-Apr-2000
Ol-Apr-2000
0 l-Apr-2000
PAGE: 38
AMOUNT/
COST/
GAfN/LOSS
9,679,277.34
0.00
0.00
5,607,910.16
-5.755,859.38
-147,949.22
5,607,910. 16
0.00
0.00
4,489.10
0.00
0.00
-34,076.00
34,l 13.Z7
37.27
34,078.50
-34,115.77
-37.27
Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 39
PORTFOLIO DETAIL
OCSGOOO I 0000 01-MAY-2000 -31-MAY-2000
OCSD-CONSOL/DATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANS CODE BROKER COMPLDATE GAlN/LOSS
LONG TERM OPER-PlMCO
-34,078.50 FHLMC MUI., TI CLASS CTF E3 A O 1-Apr-2000 34,078.50
3133TCE95 VAR RT 08/15/2032 0 l-Apr-2000 0.00
FC I 5-May-2000 0.00
LONG TERJ\.1 OPER-PIMCO
-47,990.85 FHLMC MULTTCL MTG P/C 1574 E 01-May-2000 47,990.85
3133T02D5 5.900% 06/15/2017 0 l-May-2000 -47,923.36
PD 67.49
LONG 1'ERM OPER-PJMCO
-47,990.85 FHLMC MULTICL MTG PfC 1574 E 01-May-2000 47,990.85
3133T0205 S.900% 06!1512017 01-May-2000 0.00
FC l 5-May-2000 0.00
LONG TERM OPER-PIMCO
-220, ! 65.82 FHLMC GROUP #G5-0476 01 -May-2000 220,165.82
3128DDQ55 7.000% 02/01/2003 DD 02/0J/ 01-May-2000 -223,605.91
PD -3,440.09
LONG TERM OPER-PIMCO
-220, 165.82 FHLMC GROUP #G5-0476 0 l -May-2000 220,165.82
3128DDQ55 7.000% Q2/0l/2003 DD 02/0l/ Ol-May-2000 0.00
FC 15-May-2000 0.00
LONG TERM OPER-PIMCO
-30,995.90 ONMA 11 POOL #0080023 01 -May-2000 30,995.90
36225CAZ9 7.125% 12/20/2026 DD 12/01/ 01-May-2000 -31,509.27
PD -513.37
LONG TERM OPER-PIMCO
-30,995.90 GNMI\ JI POOL 110080023 01-May-2000 30,995.90
36225CAZ9 7.125% 12/20/2026 DD 12/0 I/ Ol-May-2000 0.00
FC 22-May-2000 0.00
12-Jun-2000 10:13:41 Executive Workbench
OCSGOOO 10000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY lD
TRANSCODE
-39,526.15
36225CC20
PD
-39,526.15
36225CC20
FC
-35,207.75
3133TKKU3
PD
-35,207.75
3133Tl<K.U3
FC
-2,139.75
31348SWZ3
PD
-48,896.50
3133TCE95
PD
-1,856.63
39810#AE4
PD
12-Jun-2000 10:13:41
·.JRA~GE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000 -31-MAY-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TER1v1 OPER-PTMCO
GNMA ll POOL #080088M
VAR RT 06/20/2027 DD 06/01 /9
LONG TERM OPER-PJMCO
GNMA II POOL #080088M
VAR RT 06/20/2027 DD 06/01/9
LONG TERM OPER-PlMCO
FHLMC MULTI CLASS CTF 2146 QT
6.000% 11115/201 l
LONG TERM OPER-PIMCO
FHLMC MULTI CLASS CTF 2146 QT
6.000% 11115/2011
LONG TERM OPER-PIMCO
PHLMC GROUP #78-6064
6.384%01/01/2028 DD 12/01/
LONG TERM OPER-PIMCO
FHLMC MULTI CLASS CTF E3 A
VAR RT 08/15/2032 '
LONG TERM OPER-PIMCO
GREY STONE SVCNG CORP FHA #95
7.430% 06/01/2003 DD 02/29/0
TRADE DATE/
SETTL DATE/
COMPLDATE
01 -May-2000
0 l-May-2000
01-May-2000
Ol-May-2000
22-May-2000
Ot-May-2000
01-May-2000
0 l-May-2000
01-May-2000
J 5-May-2000
01-May-2000
Ol-May-2000
01-May-2000
0 l-May-2000
01-May-2000
0 l-May-2000
PAGE: 40
AMOUNT/
COST/
GAIN/LOSS
39,526.15
-40,390.78
-864.63
39,526.15
0.00
0.00
35,207.75
-34,586.11
621.64
35,207. 75
0.00
0.00
2,139.75
-2,087.59
52.16
48,896.50
-48,949.98
-53 .48
1,856.63
-1,829.51
27.12
Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 41
PORTFOLIO DETAIL
OCSGOOO 10000 Ol-MAY-2000 -31-MA Y-2000
OCSD-CONSOLJDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURlTY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PJMCO
-1,856.63 GREYSTONE SVCNG CORP FHA #95 O 1-May-2000 1,856.63
39810#AE4 7.430% 06/01/2003 DD 02/29/0 0 I -May-2000 0.00
FC 25-May•2000 0.00
LONG TERM OPER-PIMCO
-26,068.27 GREEN TREE CORP 99-D CL A-1 15-May-2000 26,068.27
3935052Y7 6.290% 10/15/2013 DD 08/26/9 l5-May-2000 -26,068.27
PD 0.00
LONG TERM OPER-PIMCO
-26,068 .. 27 GREEN TREE CORP 99-D CL A-J 15-May-2000 26,068.27
3935052Y7 6.290% 10/15/2013 DD 08/26/9 15-May-2000 0.00
FC l 5-May-2000 0.00
LONG TERM OPER-PlMCO
-5,791.19 FIFTH THllill BK AUTO TR 96A C 15-May-2000 5,791.19
31677EAA4 6.200% 09/011200 I DD 03/1519 l 5-May-2000 -5,79l.19
PD 0.00
LONG TERM OPER-PIMCO
-S,79J.19 FIFTH THIRD BK AUTO TR 96A C l5-May-2000 5,791.19
31677EAA4 6.200% 09/01/2001DD03/15/9 l 5-May-2000 0.00
FC l 5-May-2000 0.00
LONG TERM OPER-PIMCO
-41,786.05 GNMA GTD REMIC TR 2000-9 FH 16-May-2000 41,786.05
3837H4NX9 VAR RT 02/16/2030 l 6-May-2000 -41,786.05
PD 0.00
LONG TERM OPER-PIMCO
-41,786.05 GNMA GTD REMTC TR 2000-9 fH 16-May-2000 41 ,786.05
3837H4NX9 VAR RT 02/16/2030 16-May-2000 0.00
FC I 6-May-2000 0.00
MATURITIES
12-Jim-2000 10:13:41 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 42
PORTFOLIO DETAIL
OCSGOOO 10000 01-MAY-2000-31-MAY-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANS:<\.CTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
CASH & CASH EQUIVALENTS
LONG TERM OPER-PIMCO
-4,500,000.00 FEDERAL NATL MTG ASSN DISCOU 04-May-2000 4,455,050.00
3!3588WK7 MATURES 05/04/2000 04-May-2000 -4,455,050.00
MT 04-May-2000 0.00
LIQUID OPER-PIMCO
-2, I 00,000.00 FEDERAL NATL MTG ASSN DISCOU 1 l-May-2000' 2,077,894.58
313588WSO MAT 05/ll/2000 I 1-May-2000 -2,077,894.58
MT l l-Ma.y-2000 0.00
LONG TERM OPER-PJMCO
-5,.300,000.00 ALUMINUM CO AMER DISC t2-May-2000 5,249,482. I 7
02225AEC2 05/12/2000 12-May-2000 -5,249,482.17
MT 12-May-2000 0.00
LONG TERM OPER-PIMCO
-4,700,000.00 USAA CAP CORP DISC l 5-May-2000 4,656,701.25
90328AEF6 0511512000 J 5-May-2000 -4,656,70 1.25
MT 15-May-2000 0.00
LONG TERM OPER-PIMCO
-2,700,000.00 EASTMAN KODAK CO DISC l 8-May-2000 2,668,209.75
27746AEJ4 05/18/2000 18-May-2000 -2,668,209. 75
MT l &-May-2000 0.00
LIQUID OPER-PIMCO
-1,700,000.00 FEDERAL NATL MTG ASSN DJSC 19-May-2000 1,697,695.56
313588XA8 MAT 05119/2000 ! 9-May-2000 -1,697,695.56
MT 19-May-2000 0.00
LONG TERM OPER-PIMCO
-700,000.00 DA1MLERCHR YSLER DISC i 9-May-2000 699,498.33
2338EOEK8 05/19/2000 I 9-May-2000 -699,498.33
MT l 9-May-2000 0.00
I 2-Jun-2000 10: 13 ./ l Executive Wcrkbem:li
OCSGOOO 10000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
-7,000.000.00
36959HEK9
MT
-5,200,000.00
07588REN1
MT
-4, 700,000.00
90262CEP8
MT
-4,300,000.00
313396XF5
MT
-4,700,000.00
90262CEQ6
MT
-1 ,800,000.00
313384XFI
MT
-400,000.00
313396Xf5
MT
ll..Jun-1000 /0:13:41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2 000 -31-MAY-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
GENERAL ELEC CAP DlSC
05/1912000
LONG TERM OPER-PIMCO
BECTON DICKlNSON DISC
05/22/2000
LONG TERM OPER-PlMCO
UBS FIN DEL INC DISC
05/23/2000
LONG TERM OPER-PIMCO
FEDERAL HOME LN MTG CORP DJS
MAT 05/24/2000
LONG TERM OPER-PIMCO
UBS FIN DEL lNC DISC
05/24/2000
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MAT 05/24/2000
LIQUID OPER-PIMCO
FEDERAL HOME LN MTG CORP DIS
MAT 05/24/2000
TRADE DATE/
SETTLDATE/
COMPL DATE
l 9-May-2000
I 9-May-2000
I 9-May-2000
22-May-2000
22-May-2000
22-May-2000
23-May-2000
23-May-2000
23-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
PAGE: ./3
AMOUNT/
COST/
GAINfLOSS
6,907,755.56
-6,907,755.56
0.00
5,157,179.44
-5,157,179.44
0.00
4,699,156.61
-4,699, I 56.6 l
0.00
4,293,388. 75
-4,293,388.75
0.00
4,699, 16 l.83
-4,699,161.83
0.00
1, 791,768.00
-1,79\,768.00
0.00
399,123.22
-399, 123.22
0.00
Executive Workbench
OCSGOOOJOOOO
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
-900,000.00
38 142TEQ4
MT
-400,000.00
313384XH7
MT
FIXED INCOME SECURITIES
INTEREST
-I ,000,000.00
3134A3RT5
MT
0.00
996087094
lT
1,000,000.00
733 17PAD1
IT
0.00
996085247
IT
/2-Jun-2000 10:13:41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000 -31-MAY-2000
TRANSACTION DESCRIPTION/
BROKER
LlQUID OPER-PIMCO
GOLDMAN SACHS GROUP L P DISC
05/24/2000
LIQUID OPER-PJMCO
FEDERAL HOME LN BK CONS DISC
MAT 05/2612000
LIQUID OPER-PIMCO
FEDERAL HOME LN MTG CORP DEB
FLTG RT 0511812000 DD 05118/
LONG TERM OPER-PlMCO
BSDT-LATE MONEY DEPOSIT ACCT
LONG TERM OPER-PIMCO
POPULAR fNC MTN #TR 00004
6.200% 04/30/2001 DD 04/2119
LrQUID OPER-PIMCO
DREYFUS TREASURY CASH MGMT
TRADE DATE/
SETTLDATE/
COMPL DATE
24-May-2000
24-May-2000
24-May-2000
26-May-2000
26-May-2000
26-May-2000
18-May-2000
I 8-May-2000
I 8-May-2000
OI -May-2000
Ol-May-2000
OJ-May-2000
0 l-May-2000
JO-Apr-2000
01-May-2000
02-May-2000
Ol-May-2000
02-May-2000
PAGE· 44
AMOUNT/
COST/
GACN/LOSS
888,288.25
-888,288.25
0.00
399,793.33
-399,793.33
0.00
',000,000.00
-999,200.00
800.00
0.36
0.00
0.00
31,000.00
0.00
0.00
428.52
0.00
0.00
Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT II
.
PAGE: 45
PORTFOLIO DETAIL
OCSGOOO I 0000 01-MAY-2000 ~ 31-MAY-2000
OCSD-CONSOLIDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/
TRANSCODE BROKER COMPL DATE GAIN/LOSS
LONG TERM OPER-PIMCO
I.000,000.00 HOUSEHOLD FJN MTN SR#00570 02-May-2000 15,496.86
44181KZT4 FLTG RT 08/01/2001 DD 09/04/ 02-May-2000 0.00
lT 02-May-2000 0.00
LONG TERM OPER-PIMCO
0.00 DREYFUS TREASURY CASH MGMT 02-May-2000 1,825.41
996085247 01-May-2000 0.00
IT 02-May-2000 0.00
LONG TERM OPER-PIMCO
4,500,000.00 FEDERAL NA TL MTG ASSN DISCOU 04-May-2000 44,950.00
313588WK7 MATURES 05/04/2000 04-May-2000 0.00
IT 04-May-2000 o.oo
LONG TERM OPER-PIMCO
2,000,000.00 BANKERS TR NY CORP GLOBAL NT l 1-May-2000 31,000.00
066365DW4 FLTG RT 05/1112003 DD 05/J I/ I 1-May-2000 0.00
IT l l-May-2000 0.00
LIQUID OPER-PIMCO
2, I 00,000.00 FEDERAL NATL MTG ASSN DISCOU 1 l-May-2000 22.105.42
313588WSO MAT 051t1 /2000 I 1-May-2000 0.00
lT I J -May-2000 0,00
LONG TERM OPER-PIMCO
5,300,000.00 ALUMINUM CO AMER DISC 12-May-2000 50,517.83
02225AEC2 0511212000 12-May-2000 0.00
IT 12-May-2000 0.00
LIQUID OPER-PIMCO
500,000.00 UGI UTILS !NC MTN #TR 00006 I 5-May-2000 15,425.00
90269QAF6 6.170% 03/06/2001 DD 0310619 I 5-May-2000 0.00
IT 15-May-2000 0.00
J 2-Jun-2000 JO: I 3:41 Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PA.GE: 46
PORTFOLIO DETAIL
OCSGOOO 10000 Ol-MAY-2000-31-MAY-2000
OCSD-CONSOLJDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY lD TRANSACTION DESCRJPTlON/ SETTL DATE/ COST/
TRANSCODE BROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
2,005,000.00 SEARS ROEBUCK ACCEP CORP MTN 15-May-2000 65,563.50
81240QGW6 6.540% 02/20/2003 DD 02/20/9 15-May-2000 0.00
IT 15-May-2000 0.00
LONG TERM OPER-PlMCO
2,000,000.00 FORD MTR CR CO GLOBAL NTS l 5-May-2000 31,464.51
345397RV7 FL TG RT 02113/2 003 DD 02/ l 3/ 13-May-2000 0.00
IT 15-May-2000 0.00
LONG TERM OPER-PlMCO
1,000,000.00 PORD MOTOR CR CO NT 15-May-2000 33,750.00
345397GV9 6.750% 0511512005 15-May-2000 0.00
IT 15-May-2000 0.00
LONG TERM OPER-PIMCO
3,000,000.00 GENERAL MTRS ACCEP #TR 00562 l 5-May-2000 47,474.70
37042WZKO FL TO RT 02/14/2003 DD 02/14/ 15-May-2000 0.00
IT l .5-May-2000 0.00
LONG TERM OPER-PIMCO
220,165.82 FHLMC GROUP #05-0476 15-May-2000 50,418.81
3128DDQ55 7.000% 02/01/2003 DD 02/01/ 0 l-May-2000 0.00
IT 15-May-2000 0.00
LONG TERM OPER-PIMCO
4, 700,000.00 USAA CAP CORP DISC 15-May~2000 43,298.75
90328AEF6 0511512000 15-May-2000 0.00
JT I 5-May-2000 0.00
LONG TERM OPER-PIMCO
35,207.75 fHLMC MULTI CLASS CTF 2146 QT I 5-May-2000 12,217.80
3133TKKU3 6.000% ll/15/2011 0 I -May-2000 0.00
IT l 5-May-2000 0.00
12-Jim-2000 10: 13:41 Executive Workbench
OCSGOOO I 0000
OCSD-CONSOLIDATED
SHARES/PAR
SECURJTY ID
TRANSCODE
47,990.85
3133T02D5
IT
4,489.10
3J348SWZ3
1T
26,068.27
3935052¥7
JT
34,078.50
3133TCE95
IT
5,791.19
31677EAA4
1T
2.50
3l33TCE95
IT
41 ,786.05
3837H4NX9
1T
12-Jun-2000 10:13:41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000 -31-MAY-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
FHLMC MULTICL MTG P/C 1574 E
5.900% 06/15/2017
LONG TERM OPER-PIMCO
FHLMC GROUP #78-6064
6.384% 01/01/2028 DD 12/01/
LONG TERM OPER-PIMCO
GREEN TREE CORP 99-D CL A· I
6.290% 10/15/2013 DD 08/26/9
LONG TERM OPER-PIMCO
FHLMC MULTICLASS CTF E3 A
VAR RT 08115/2032
LONG TERM OPER-PJMCO
FIFTH THIRD BK AUTO TR 96A C
6.200% 091011200 l DD 03/15/9
LONG TERM OPER-PTMCO
FHLMC MULTICLASS CTF E3 A
VAR RT 08/15/2032
LONG TERM OPER-PIMCO
GNMA GTD REMIC TR 2000-9 PH
VAR RT 02/16/2030
TRADE DATE/
SETIL DATE/
COMPLDATE
I 5-May-2000
01-May-2000
I 5-May-2000
LS-May-2000
01-Apr-2000
1 S-May-2000
1.S-May-2000
15-May-2000
15-May-2000
15-May-2000
Ol-Apr-2000
I 5-May-2000
1 5-May-2000
15-May-2000
15-May-2000
15-May-2000
Ol-Apr-2000
15-May-2000
16-May-2000
16-May-2000
I 6-May-2000
PAGE· 47
AMOUNT/
COST/
GAIN/LOSS
2,072.53
o.oo
0.00
1,770.53
0.00
0.00
1,852.99
0.00
0.00
15,746.72
0.00
0.00
192.38
0.00
0.00
2.SO
0.00
0.00
14,928.66 o.oo
0.00
£.xecutive Workbench
OCSGOOO 10000
OCSD-CONSOLIDA TED
SHARES/PAR
SECURITY lD
TRANSCODE
3,500,000.00
17120QE80
TT
1,000,000.00
3134A3RT5
IT
3,950,000.00
370425QV5
IT
2,700,000.00
27746AEJ4
TT
700,000.00
2338EOEK8
IT
I, 700,000.00
313588XA8
IT
7,000,000.00
36959HEK9
IT
12-Jun-2000 10:13.·4]
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY~2000 -31-MAY-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
CHRYSLER FINL LLC MTN #TR006
FLTG RT 08/0872002 DD 04/08/
LIQUfD OPER-P1MCO
FEDERAL HOME LN MTG CORP DEB
FLTG RT 05/18/2000 OD 051181
LONG TERM OPER-PIMCO
GMACNTS
FLTG RT 08/J 8/2003 DD 08/17/
LONG TERM OPER-PIMCO
EASTMAN KODAK CO DISC
05/18/2000
LONG TERM OPER-PIMCO
DAJMLERCHR YSLER D!SC
05/19/2000
LJQUfD OPER-PIMCO
FEDERAL NATL MTG ASSN D!SC
MAT 05/19/2000
LONG TERN! OPER-PIMCO
GENERAL ELEC CAP DISC
05/19/2000
TRADE DATE/
SETTL DATE/
COMPLDATE
17-May-2000
20-Apr-2000
l 7-May-2000
l 8-May-2000
18-May-2000
18-May-2000
18-May-2000
18-May-2000
18-May-2000
18-May-2000
l 8-May-2000
18-May-2000
19-May-2000
l 9-May-2000
l 9-May-2000
l 9-May-2000
19-May-2000
19-May-2000
l 9-May-2000
19-May-2000
I 9-May-2000
II PAGE: 48
AMOUNT/
COST/
GAIN/LOSS
l 7,068.35
0.00
0.00
4,945.83
0.00
0.00
61,110.45
0.00
0.00
31,790.25
0.00
0.00
501.67
0.00
0.00
2,304.44
0.00
0.00
92,244.44
0.00
0.00
Executive Workbench
OCSGOOO 1 onoo
OCSD-CONSOUDATED
SHARES/PAR
SECURJTY ID
TRANSCODE
2,000,000.00
3837H3C70
IT
5,200,000.00
07588REN1
IT
30,995.90
36225CAZ9
IT
39,526.15
36225CC20
ff
4, 700,000.00
90262CEP8
IT
12,112.81
3133Tl7A4
fT
4,300,000.00
313396XF5
IT
12-.11111-2f10!) 10: 13:41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
01-MAY-2000 -31-MAY-2000
TRANSACTION DESCRIPTION/
BROKER
LONG TERM OPER-PIMCO
GNMA GTD REMJC TR 2000-2 PA
7.000% 12/20/2022
LONG TERM OPER-PIMCO
BECTON DICKINSON DISC
05/22/2000
LONG l'ERM OPER-PlMCO
GNMA Tl POOL #0080023
7.125% 12/20/2026 DD 12/01/
LONG TERM OPER-PIMCO
GNMA JI POOL #080088M
VAR RT 06/20/2027 DD 0610119
LONG TERM OPER-PlMCO
UBS FIN DEL INC DISC
05/23/2000
LONG TERM OPER-PIMCO
FHLMC MULTlCLASS CTF SER 162
6.000% I Ill 5/2023 DD 11101/9
LONG TERM OPER-PIMCO
FEDERAL HOME LN MTG CORP DIS
MAT 05/24/2000
TRADE DATE/
SETTLDATE/
COMPLDATE
22-May-2000
01-May-2000
22-May-2000
22-May-2000
22-May-2000
22-May-2000
22-May-2000
0 l-May-2000
22-May-2000
22-May-2000
01-May-2000
22-May-2000
23-May-2000
23-May-2000
23-May-2000
23-May-2000
01-May-2000
23-May-2000
24-May-2000
24-May-2000
24-May-2000
ll PAGE:
AMOUNT/
COST/
GAIN/LOSS
11,666.67
o.oo o.oo
42,820.56
0.00
MO
8,521.64
0.00
0.00
I0,258.72
0.00
0.00
843.39
0.00
0.00
12,112.81
0.00
0.00
6,6 11.25
0.00 o.oo
Executive Workbenc/1
OCSGOOO 10000
OCSD-CONSOLIDATED
SHARES/PAR
SECURITY ID
TRANSCODE
J,800,000.00
3 l3384XFI
IT
400,000.00
313396XP5
IT
900,000.00
38142TEQ4
IT
4, 700,000.00
90262CEQ6
IT
2,000,000.00
3133TDPV2
IT
1,856.63
398lO#A.E4
fT
400,000.00
313384XH7
IT
12-Jun-2000 J 0: 1 3~41
ORANGE COUNTY SANITATION DISTRICT
PORTFOLIO DETAIL
Ol-MAY-2000 -31-MAY-2000
TRANSACTION DESCRIPTION/
BROKER
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MAT 05/24/2000
LIQUID OPER-PlMCO
FEDERAL HOME LN MTG CORP DIS
MAT 05/24/2000
LlQtJJD OPER-PIMCO
GOLDMAN SACHS GROUP L P DISC
05/24/2000
LONG TERM OPER-PIMCO
UBS FIN DEL INC DISC
05/24/2000
LONG TER.lvf OPER-PIMCO
FHLMCMULTICLASS CTFTI I A6
6.500% 09/25/2018
LONG TERM OPER-PlMCO
GREYSTONE SVCNG CORP FHA #95
7.430% 06/01/2003 DD 02/29/0
LIQUID OPER-PIMCO
FEDERAL HOME LN BK CONS DISC
MAT 0512612000
TRADE DATE/
SETTL DATE/
COMPLDATE
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-200().
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
24-May-2000
25-May-2000
25-Apr-2000
25-May-2000
25-May-2000
Ol-May-2000
25-May-2000
26-May-2000
26-May-2000
26-May-2000
PAGE: 50
Al\ilOUNT/
COST/
GAIN/LOSS
8,232.00
0.00
0.00
876.78
0.00
0.00
I 1,711.75
0.00
0.00
838.17
0.00
0.00
10,833.33
0.00
0.00
8,159.32
0.00
0.00
206.67
0.00
0.00
Executive Workbench
@ ORANGE COUNTY SANITATION DISTRICT PAGE: 51
PORTFOLIO DETAIL
OCSGOOOJOOOO Ol-MAY-2000 -31-MAY-2000
OCSD-CONSOLJDATED
SHARES/PAR TRADE DATE/ AMOUNT/
SECURITY ID TRANSACTlON DESCRlPTlON/ SETTLDATE/ COST/
TRA'NS CODE 'B ROKER COMPLDATE GAIN/LOSS
LONG TERM OPER-PIMCO
2,000,000.00 FORD MTR CR CO TERM ENHANCED JO-May-2000 J J,740.00
345397SC8 FLTG RT 08/27/2006 DD 08127/ 27-May-2000 0.00
IT 30-May-2000 0.00
LONG TERM OPER-PIMCO
0.00 US TREASURY INFLATION INDEX 3 l-May-2000 8,250.00
9128275W8 4.250%001/15/2010 DD 01/15/ 0.00
CD 3 l-May-2000 0.00
LONG TERM OPER-PIMCO
0.00 SALOMON SMITH BARNEY HLDGS 1 31-May-2000 15,137.50
795498801 3.650% 02/1412002 DD 02/141 0.00
CD 31-May-2000 0.00
LONG TERM OPER-PIMCO
0.00 SHORT TERM FDS INT ADJ 3 l-May-2000 -2,652.12
990000PJ4 NET OF OVERNIGHT INTEREST 3 l -May-2000 0.00
cw 3 t-May-2000 0.00
LONG TERM OPER-PIMCO
0.00 US TREASURY INFLATION INDEX J l-May-2000 201,480.00
9128272M3 3.375% 01/15/2007 DD 0 l /15/ 0.00
CD 3 J-May-2000 0.00
LONG TERM OPER-PIMCO
0.00 US TREASURY INFLATION INDEX 3 l-May-2000 71,094.00
9128273A8 3.625% 07/15/2002 OD 07/15/ 0.00
co 31-May-2000 0.00
12-Jim-2000 10:13:41 Executive Workbench