The URL can be used to link to this page

Home My WebLink About2000-09-13Draft MINUTES OE FINANCE. ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Orange County Sanitation District Wednesday, September 13, 2000, 5:00 p.m. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on September 13, 2000 at 5:00 p.m., in the District's Administrative Office. FILED (1) IN THE OFFICE OF n ~CRS1\ifY The roll was called and a quorum declared present, as follows: ORANGE cou·Jrv qf.N',.. n:r f'1rm:un FAHR COMMITTEE MEMBERS: Directors Present: Thomas R. Saltarelli, Chair Mark Leyes, Vice Chair Shawn Boyd John M. Gullixson Shirley McCracken Joy L. Neugebauer Peer Swan Peter Green, Board Vice Chair Jan Debay, Past Board Chair OTHERS PRESENT: Tom Woodruff, General Counsel Jeff Bower (2) APPOINTMENT OF CHAIR PRO TEM SEP 2 7 2000 Directors Absent: Norm Eckenrode, Boardfthair Mark A. Murphy James W. Silva STAFF PRESENT: I< Bla.ke Anderson, General Manager Gary Streed, Director of Finance Lisa Tomko1 Director of Human Resources Bob Ooten, Director of Operations & Maintenance Steve Kozak, Financial Manager Mike White, Controller Greg Mathews, Asst. to the General Manager Marc Dubois, Purchasing/Contracts Manager Penny Kyle, Committee Secretary Director Peter Green was appointed Chair Pro Tern until Director Saltarelli arrived. (3) PUBLIC COMMENTS There were no public comments. (4) RECEIVE, FILE AND APPROVE MINUTES OF PREVIOUS MEETING It was moved, seconded and duly carried to approve the minutes of the July 12, 2000 Finance, Administration and Human Resources Committee meeting. Director Neugebauer abstained. Minutes of the Finance, Administration and Human Resources Committee Meeting Page2 September 13, 2000 (5) REPORT OF THE COMMITTEE CHAIR Chair pro tern Peter Green indicated a need to add an additional item to the Closed Session, needing immediate action that arose subsequent to the publication of the Agenda. He reported that an additional item could be added pursuant to California Government Code Section 54954.2(b) upon a two-thirds' vote of the Committee. No other item would be discussed or acted upon. MOVED, SECONDED ANO DULY CARRIED: To add Agenda Item No. 16(a)(2), pursuant to authority of Government Code Section 54954.2, to authorize discussion and consideration of the following item which arose subsequent to the posting of the Agenda and which requires action at this time, to with: Crow Winthrop Development Limited Partnership v. Orange County Sanitation District1 et al., Orange County Superior Court Case No. 000002012 (Government Code Section 54956.9). Director Swan abstained. (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson reported that the District is conducting a meeting on September 20th at the Garden Grove Community Center regarding new federal regulations for city sewer systems that establish construction, maintenance, operations and management (CMOM) requirements. It was also announced that the District would be holding a Spill Prevention and Response Workshop on September 26, at the Fountain Valley Community Center. (7) REPORT OF DIRECTOR OF FINANCE Director of Finance Gary Streed referred the Directors to several handouts they were provided that evening, which included an Executive Summary of the current budget, Report on Excess Workers Compensation Insurance, the Treasurer's Report and a report on the Certificates of Participation package. Mr. Streed then announced that Steve Kozak, Financial Manager, had submitted his resignation to the District to become a Deputy Treasurer of the Los Angeles International Airport Commission. (8) REPORT OF DIRECTOR OF HUMAN RESOURCES The Director of Human Resources referred the Directors to a handout provided that evening that was not included with the agenda report regarding F AHR00-72. (9) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff had no report. (10) CONSENT CALENDAR ITEMS a. FAHR00-64: Receive and file Treasurer's Report for the month of August 2000. b. FAHR00-65: Receive and file Certificate of Participation (COP) Monthly Report. Minutes of the Finance, Administration and Human Resources Committee Meeting Page3 September 13, 2000 c. FAHR00-66: Receive and file Employment Status Report as of August 21, 2000. d. FAHR00-67: Recommend to Board of Directors to receive and file Quarterly Investment Management Program Report for the period April 1, 2000 through June 30, 2000. e. FAHR00-68: Receive and file FY 1999-00 End of Year Operational Report. f. FAHR00-69: Receive and file report of General Manager approved purchases in amounts exceeding $50,000 in accordance with Board purchasing policies. END OF CONSENT CALENDAR Motion: It was moved, seconded and duly canied to approve the recommended actions for items specified as 10(a) through (f) under Consent Calendar. (11) ACTION ITEMS a. FAHR00-70: Recommend to Board of Directors to authorize the Contracts/Purchasing Motion: Manager to transition from the pilot phase to a permanent, full~scale procurement card program. It was moved, seconded and duly carried to recommend approval to the Board of Directors, and to provide the FAHR Committee with a report of usage after the first year. b. FAHR00 .. 71 : Recommend to Board of Directors to authorize the General Manager to Motion: solicit proposals and award a Consultant Services Agreement for a District-wide compensation and classification study {Specification No. P-192) in an amount not to exceed $120,000. It was moved, seconded and duly canied to recommend approval to the Board of Directors, and to further provide that the selected consultant will review with the FAHR Committee his approach to the study, and to provide periodic reports to said Committee. c. FAHR00-72: Recommend to Board of Directors to Adopt Resolution No. OCSD 00-_, Motion: Amending Resolution No. OCSD 98-33, Amending Human Resources and Policies Procedures Manual, providing for: (1) Create Communications Services Manager classifieation at pay range E13($67,128-$94,932); and (2) Create HRIS Analyst classification at pay range ES ($45,396 - $64,212). 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 Page4 September 13, 2000 d. FAHR00-73: Recommend to Board of Directors to Adopt Resolution No. OCSD 00-_, Motion: Directing the County Tax Collector to Include Sanitary Sewer Service Charges on the 2000-01 Property Tax Bills, and Repealing Resolution No. OCSD 99-11. It was moved, seconded and duly carried to recommend approval to the Board of Directors. (12) INFORMATIONAL PRESENTATIONS a. FAHR00-74: Changes at the District Since 1985-86 Gary Streed, Director of Finance, gave a brief report on the changes at the District since 1985/86 to present. This report was given because the F AHR Committee, during the budget process, noted that the budgeted cost to treat and dispose of one million gallons had increased from $305/mg in 1985-86 to $514/mg in 2000-01 . These years were compared because the average daily flow was approximately the same. (13) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY Director Gullixson requested staff to consider providing laptop computers for all Directors, and to provide agenda material electronically. (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT Director Swan requested that he be allowed to bring an alternative to the Groundwater Replenishment System before the Committee for their consideration. (15) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled for October 11, 2000 at 5 p.m. (16) CLOSED SESSION The Committee convened in Closed Session at 6:55 p.m. pursuant to Government Code Sections 54957.6 and 54956.9 to discuss and consider Agenda Item Nos. 16{a){1) and (2). Confidential Minutes of the Closed Session held by the Finance, Administration and Human Resources Committee have been prepared in accordance with California Government Code Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. No reportable actions were taken re Agenda Item Nos. 16{a)(1) and (2). At 9:00 p.m., the Committee reconvened in regular session. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 5 September 13, 2000 (17) ADJOURNMENT The Chair dedared the meeting adjourned at approximately 9:00 p.m. Submitted by: Penny M. le FAHR Committee Secretary H;lwp.dle~IFA>IRIFAHR2DOOl2000 Minulee'IJIH300 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 J.~'4. 1 t .3 , 200~, was duly posted for public inspection in the main lobby of the District's offices on ~ IP 200 D. IN WITNESS WHEREOF, I have hereunto set my hand this It~ day of ~ ,2ooc2_. Penny M. Ky , Secretary Board of Directors Orange County Sanitation District \\RADON\DATA 1 \WP.DTA\ADMIN\BS\FORMS\AGENDA CERTIFICATION-FAHR COMMITTEE.DOC phone: (714) 962-2411 mailing address: P.O. Box 8127 Fountain Valley. CA 92728-8127 street address: 10844 Ellis Avenue Fountain Valley, CA 92706-7018 Member Agencies Cities Anaheim Brea Buena Park Cypress Fountain Valley Fullerton Garden Grove Huntingwn Beach Irvine La Habra Ls Palma Los Alamitos Newport Beach Orange Placentia Santa Ana Seal Beach Stanton Tustin Vil/a Park Yorba Linda County of Orange Sanit ary Dist ricts Coste Mesa Midway City Water Districts Irvine Ranch ORANGE CO UNTY S ANITATION DI STRICT September 6, 2000 NOTICE OF MEETING FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, SEPTEMBER 13, 2000 -5:00 P.M. DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708 A regular meeting of the Finance, Administration and Human Resources Committee of the Board of Directors of the Orange County Sanitation District, will be held at the above location, date and time. "To Protect the Public Health and the Environment through Excellence in Wastewater Systems" FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING DATES FAHR Committee Meeting Date 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 July 11 , 2001 No Meeting Scheduled September 12, 2001 Board Meeting Dates 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 July 18, 2001 August 22, 2001 September 26, 2001 ROLL CALL FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Meeting Date: September 13. 2000 Time: 5:00 p.m. Adjourn: ----- COMMITTEE MEMBERS THOMAS R. SALTARELLI (Chair) ................................................ . MARK LEYES (Vice Chair) ........................................................... . SHAWN BOYD .............................................................................. . JOHN M. GULLIXSON .................................................................. . SHIRLEY MCCRACKEN .............................................................. . JOY L. NEUGEBAUER ................................................................. . JAMES W. SILVA .......................................................................... . PEER SWAN ................................................................................. . NORMAN Z. ECKENRODE (Board Chair) ..................................... . PETER GREEN {Board Vice Chair) ............................................ .. JAN DEBAY (Past Board 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, Director of Human Resources ................................ . GARY STREED, Director of Finance ............................................. .. PATRICK MILES, Director of Information Technology .................. . ROBERT GHIRELLI, Di~or of Technical Services ..................... . STEVE KOZAK, Financial Manager .............................................. .. MIKE WHITE, Controller ............. ; ................................................... . GREG MATHEWS, Assistant to the General Manager ................... . MARC DUBOIS, Contracts/Purchasing Manager PENNY KYLE, Committee Secretary ............................................. .. c: Lenora Crane In accordance with the existing staffing plan, a reduction of 8.5 full-time equivalent (FrE) positions is being proposed in 2000-01, 5.5 FrE positions below the original four-year target of 515.S FfE. Over the last three fiscal years, 97 FrE positions have been eliminated as staffing has been reduced from 616 FrEs to 519 FrEs. The 2000-01 authorized staffing is 510 FTEs. Although the district has been well below the reduction level at the end of each year through fiscal year 1999-00, staffwilJ be preparing a new five-year staffing plan in December 2000 to justify current and future staffing levels. After eliminating 168.0 positions since the 1995-96 approved staffing level, staff believes the agency is now in a better position to re-evaluate the appropriate staffing level without impacting the current service levels. Sewer Service Fee Increases In April 2000, the board of directors adopted a consolidated rate structure for all revenue areas except Revenue Areas 7 and 14. The sewer services incurred by Revenue Area 14 are funded by the Irvine Ranch Water District since the district receives no property tax or user fees directly from the property owners within Revenue Area 14. Revenue Area 7 is uniquely responsible for approximately 200 miles of local sewers that are maintained by the district and has other organizational issues to be resolved. In moving towards a single rate structure, the board of directors implemented the lowest rate structure of any of the seven revenue areas scheduled to be consolidated in accordance with the previously adopted rate schedule for 2000-01. This resulted in fee reductions for approximately two-thirds of the district's sewer service users. Under this new fee schedule, the average annual residential rate is $77.37, well below the average California rate of $184.80, according to a study by the consulting firm Black & Veatch. Strategic Goa l s The district identified five strategic goals that represent our long-term commitment to excellence and to establish a framework to achieve best-in-class status. These goals were first implemented in fiscal year 1998-99 and are re-evaluated annually. These goals are as follows: • Consistently Employ Strategic and Tactical Resource Planning • Develop and Maintain an Effective Workforce • Consistently Apply Appropriate Technology • Consistently Deliver Excellent Health and Environmental Protection • Consistently Deliver an Excellent Level of Service Orange County Sanitation District 10844 Ellis Avenue, Fountain Valley, CA 92708-7018 contact us at 714-962-2411 or www.ocsd.com OCSD 9/00 EXECUTIVE SUMMARY Orange Count y Sanitation District, Ca lifornia The Orange County Sanitation District budget for jisca I year 2000-0 I reflects our ongoing efforts to streamline the organization, and to increase our overall efficiency and effectiveness. We continue to place greater emphasis on workforce flexibility through cross-training. Multi-disciplinary teams, staffed by employees from all levels of the organization, are taking an active role in identifying ways to improve efficiency and productivity. Uie decreased authorized staffing levels and implemented a jive-year staffing plan that has allowed us to use and allocate resources as efficiently as possible. This five-year staffing plan will be updated in December 2000 for the next jive years as we continue to search fo r ways to reduce operating costs and i11crease efficiencies. Reductions have been made in contractual services and supplies to hold costs to prior year levels, and we are establishing a new compensatio11 program that encourages and rewards team and i11divid11al efforts. The impact of some of these measures has been immediate while the effect of others will take longer to realize. All of these activities reflect a period of change for the district as we strive to become more competitive in an increasingly competitive environment. Budget Overv iew Our two treatment plants, located in Fountain Valley and Huntington Beach, process approximately 245 million gallons of wastewater each day generated by approximately 2.2 million people in central and northwest Orange County. The 2000-01 proposed budget to operate, maintain and manage our sewage treatment and disposal system is $46 million, an increase of $2.0 million over the prior year. The cost per million gallons of wastewater treated, an industry-wide performance measurement, is expected to increase in 2000-01 to $514.40, a $22.15 or 4.5 percent increase over the prior year projection of $492.25. Wastewater flows through the treatment system are expected to increase slightly from 240 million gallons per day (mgd) in 1999-00 to 245 mgd in 2000-01, a 2 percent increase. As depicted in the following graph. the cost per mgd was noticeably lower in 1997-98 than in the two years preceding it or the three years after. This dip is attributable to the EI Niffo Storms that occurred in 1997-98 (the storms increased wastewater flows to 254 million gallons and the flXed costs could be spread over more water resulting in a lower cost per mgd in that year). <OST PER MILLION GALLONS' TREATED ~~.j.-~~~~-.-~~---~~~---l 1995-96 1996-97 1997-98 1998-99 199S-00 2000-01 Bud901 The district's Capital Improvement Program (CIP) cash flow budget for fiscal year 2000-01 is $83.5 million, a decrease of $8.9 million from the prior year. The ClP budget finances joint works treatment and disposal system improvement projects, and collection system improvement projects. Strategic Plan A major strategic planning effort was completed in the fall of 1999 that defines the district's goals, operational commitments and associated financial requirements for the next 10 years. The Strategic Plan revises many of tbe assumptions used to develop our existing planning document, including population and land use projections, the level of building activity in our service area and the volume of wastewater treated. The plan provides an operations and financial strategy, including a review of our colJection, treatment and disposal facilities, and a study of our ocean outfall system. Fiv e-Year Staf fing Plan ln the past, we have compared the cost to operate our facility with other publicly owned and operated wastewater treatment facilities of similar size, and the results have always been favorable. However, the results of a study conducted in early 1996 were not as reassuring. We learned that our staffing levels when compared to privatized systems were higher, and as a result, we developed the Five-Year Staffing Plan. SOURCES Of FUNDING The plan relies primarily on normal attrition to bring us to staffing levels that more closely match the levels of private sector wastewater facilities while ensuring operational efficiency within all areas of the organization. The Five;:vear Staffing Plan is a blueprint for a new and streamlined organization that is more efficient in the completion of daily tasks. The plan relies on the implementation of plant and office automation, training an increasingly adaptive workforce, and streamlining our administrative and operational procedures. USES OF FUNDING Interest & Misc -$4, ,3110,000 P·roporty Tax -$34,504,000 How funding is Used Resources are used to fund the cost of providing wastewater collection, treatment and disposal service, including employees' salaries and benefits, debt service, our capital improvements and the cost of self insurance. Summary of Joint Operating Expenses 1999-00 vs. 2000-01 1999-00 1999-00 2000·01 Revised Budget Projected Approved Budget Salary, Wages & Benefits $37 ,655,800 $37,828,300 $41,287,700 Administrative Expenses 804,100 647,200 753,000 Printing & Publication 387,500 361,800 352,300 Training & Meetings 991,000 813,500 901,850 Operating Expenses 4,882,700 4,912,800 4,712,960 Contractual Services 6,762,700 6,909,400 7,221,700 Professional Services 2,480,900 1,935,700 1,985,500 Research & Monitoring 2,428,600 2,298,600 2,1 35,500 Repairs & Maintenance 5,630,400 5,271,000 5,287,500 Utilities 3,580,000 3,239,200 3,145,250 Other Materials, Supplies, and Services 2,523,900 2,048,800 2,613,990 Cost Alloc-CORF end Other {19,732,600) {18,159,000} (19,906,600) Total Joint Operating Expense 48,395,000 48,107,300 50,490,650 Revenues & Offsets (4,395,000) (4,868,000) (4,490,650) Net Joint Operating Expense $44,000,000 $43,239,300 $46,000,000 I ~ I ' AGENDA REGULAR MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, SEPTEMBER 13, 2000, AT 5:00 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California 92708 In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the District's Administrative Offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the Office of the Board Secretary. In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion arid/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or that there is a need to take immediate action which need came to the attention of the Committee subsequent to the posting of the agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. (1) ROLL CALL (2) APPOINTMENT OF CHAIR PRO TEM. IF NECESSARY (3) PUBLIC COMMENTS All persons wishing to address the Finance, Administration and Human Resources Committee on specific agenda items or matters of general interest should do so at this time. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to five minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). September 13, 2000 (4) APPROVE MINUTES OF PREVIOUS MEETING Approve minutes of the July 12, 2000, Finance, Administration and Human Resources Committee meeting. (5) REPORT OF COMMITIEE 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: !An matters placed on the consent calendar are considered as not requiring discussion or further explanation and I 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 !calendarwill be enacted by one action approving all motions, and casting a unanimous ballot for resolutions I included on the consent calendar. All items removed from the consent calendar shall be considered in the regular !order of business. I Members of the public who wish to remove an item from the consent calendar shall, upon recognition by the chair, state their name, address and designate by number the item to be removed from the consent calendar. jThe Chair will determine if any items are to be deleted from the consent calendar. I a. FAHR00-84: Receive and file Treasurer's Report for the month of August 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 Govemment Code requirement to have monthly reports reviewed within 30 days of month end. 2 I b. FAHR00-65: c. FAHR00-66: d. FAHR00-67: e. FAHR00-68: f. FAHR00-69: September 13, 2000 Receive and file Certificate of Participation (COP) Monthly Report. Receive and file Employment Status Report as of August 21, 2000. Receive and file Quarterly Investment Management Program Report for the period April 1, 2000 through June 30, 2000. Receive and file FY 1999-00 End of Year Operational Report. Receive and file report of General Manager approved purchases in amounts exceeding $50,000 in accordance with Board purchasing policies. END OF CONSENT CALENDAR Consideration of items deleted from Consent Calendar, if any. (11) ACTION ITEMS a. FAHR00-70: b. FAHR00-71: c. FAHR00-72: d. FAHR00-73: Recommend to Board of Directors to authorize the Contracts/Purchasing Manager to transition from the pilot phase to a permanent, full-scale procurement card program. (Marc Dubois-10 minutes) Recommend to Board of Directors to authorize the General Manager to solicit proposals and award a Consultant Services Agreement for a District-wide compensation and classification study (Specification No. P-192) in an amount not to exceed $120,000. (Lisa Tomko -5 minutes) Recommend to Board of Directors to Adopt Resolution No. OCSD 00-_, Amending Resolution No. OCSD 98-33, Amending Human Resources and Policies Procedures Manual, providing for: (1) Create Communications Services Manager classification at pay range E13 ($67, 128 -$94,932); and (2) Create HRIS Analyst classification at pay range E5 ($45,396 -$64,212). (Lisa Tomko -5 minutes) Recommend to Board of Directors to Adopt Resolution No. OCSD 00- -' Directing the County Tax Collector to Include Sanitary Sewer Service Charges on the 2000-01 Property Tax Bills, and Repealing Resolution No. OCSD 99-11. (Gary Streed -5 minutes) 3 September 13, 2000 (12) INFORMATIONAL PRESENTATIONS a. FAHR00-74: Changes at the District Since 1985-86 (Gary Streed-15 minutes) (13) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY (14) MATTERS 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 October 11, 2000, at 5 p.m. (16) CLOSED SESSION I During the course of conducting the business set forth on this agenda as a regular meeting of the Committee, ti;e-l ' 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. I 1 1Reports 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 j the California Public Records Act, may be reviewed by the Committee during a permitted closed session and are I jnot available for public inspection. M such time as final actions are taken by the Committee on any of these .1 isubjects, the minutes will reftect all required disclosures of information. ___; A. Convene in closed session. 1. Confer with District's Labor Negotiators (Human Resources Representative and General Manager) re salaries, benefits, tenns and conditions of employment for employees represented by SPMT Unit (Government Code Section 54957.6). B. Reconvene in regular session. C. Consideration of action, if any, on matters considered in closed session. (17) ADJOURNMENT I 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: ~mmittee Secretary: Thomas Saltarelli Penny Kyle (949) 833-9200 (714) 593-7130 4 ' September 6, 2000 October Consider Annexation Fee Policy Action October Update Human Resources Policies & Procedures Action November Consider Equity Salary Adjustments Action November 1999-2000 Comprehensive Annual Financial Report Action November 2000-01 151 Quarter Financial & Operational Report Action December Consideration of 2001-02 Budget Assumptions Action MINUTES OF FINANCE. ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Orange County Sanitation District Wednesday, July 12, 2000, 5:00 p.m. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on July 12, 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 Shir1ey McCracken Peer Swan Nonn Eckenrode, Board Chair Peter Green, Vice Board Chair Jan Debay, Past Board Chair OTHERS PRESENT: Tom Nixon, General Counsel Toby Weissert Jeff Bower Juan Pittman Greg Harrington (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary (3) PUBLIC COMMENTS There were no public comments. Directors Absent: John M. Gullixson Marie A. Murphy James W. Silva STAFF PRESENT: Blake Anderson, General Manager Gary Streed, Director of Finance Lisa Tomko, Director of Human Resources Steve Kozak, Financial Manager Mike White, Controller Greg Mathews, Asst. to the General Manager Barbara Collins, Senior Analyst Penny Kyle, 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 June 14, 2000 Finance, Administration and Human Resources Committee meeting. Directors Eckenrode and Boyd abstained. Minutes of the Finance, Administration and Human Resources Committee Meeting Page2 July 12, 2000 (5) REPORT OF THE COMMITTEE CHAIR Chair Saltarelli encouraged the Directors to attend the Groundwater Replenishment System Workshop on July 15 being held at the Orange County Water District. (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson reported that Chris Reed of the Orange County Register has been working with staff on an article regarding biosolids that should be in Sunday's newspaper. (7) REPORT OF DIRECTOR OF FINANCE Director of Finance Gary Streed reported during the last 14 months there have been two downgrades in the investment portfolio but there have also been eight upgrades. (8) REPORT OF DIRECTOR OF HUMAN RESOURCES The Director of Human Resources had no report. (9) REPORT OF GENERAL COUNSEL General Counsel Tom Nixon had no report. (10) CONSENT CALENDAR ITEMS a. FAHR00-56: Receive and file Treasurer's Report for the month of June 2000. b. FAHR00-57: Receive and file Certificate of Participation (COP) Monthly Report. c. FAHR00-58: Receive and file ·employment Status Report as of June 19, 2000. d. FAHR00-59: Recommend to Board of Directors to receive and file 2000/01 Strategic Goals Workplans. e. FAHR00-60: Recommend to Board of Directors to adopt Resolution No. OCSD 00-XX, Declaration of Official Intent to Reimburse Certain of the District's Capital Reserve Funds for Expenditures Made in Advance for FY 2000-01 Capital Improvement Projects from Proceeds of a Future Long-Term Financing. END OF CONSENT CALENDAR Motion: It was moved, seconded and duly carried to approve the recommended actions for items specified as 10(a) through (e) under Consent Calendar. (11) ACTION ITEMS a~ FAHR00-61 : Recommend to Board of Directors to approve Amendment No. 3 to the Lease Agreement with Seaside Financial Corporation (Specification No. L-009-1) for lease of 18.09 acres of land at the northeast Minutes of the Finance, Administration and Human Resources Committee Meeting Page 3 July 12, 2000 Motion: comer of Ward Streed and Garfield Avenue in the city of Fountain Valley for a one year period beginning September 1, 2000. It was moved, seconded and duly canied to recommend approval to the Board of Directors. b. F AHR00-62: Recommend to Board of Directors to adopt Resolution No. OCSD Motion: 00-.XX, Authorizing the District's Treasurer to Invest and/or Reinvest District's Funds; Adopting District's Investment Policy Statement and Performance Benchmarks for FY 2000-01 ; and Repealing Resolution No. OCSD 99-14. Director McCracken requested several minor clarifications be made to the Investment Policy, as written. It was moved, seconded and duly carried to recommend approval to the Board of Directors, as clarified. c. FAHR00-63: Recommend to Board of Directors to : Motion: 1. Approve issuance of either the Series 2000 Refunding COPs (not- to-exceed $200 million), or the Series 2000 Refunding and Reimbursement COPs (not-to-exceed $230 million); and, 2. Adopt Resolution Authorizing the Issuance of the Series 2000 COPs along with certain amendments to the District's outstanding Series 1992 and Series 1993 COPs. The Resolution requests that certain Authorized Officers be authorized to execute the proposed amendments and refunding documents substantially in the form attached, with such revisions as may be required or approved by such Authorized Officer. Execution of the Series 2000 Refunding and Reimbursement COPs will be subject to a not-to-exceed par amount of $230,000,000, a not-to-exceed underwriter's discount of 0.35% {or 35 basis points), and a maximum maturity not to exceed 35 years; and, 3. Direct staff to develop a plan for competitive selection of Remarketing Agents for the District's variable rate COPs following issuance and settlement of the Series 2000 COPs, and report back to the FAHR Committee. It was moved, seconded and duly carried to recommend approval to the Board of Directors for the issuance of Series 2000 Refunding and Reimbursement COPs, not to exceed $230 million; adopt a resolution authorizing the issuance of Series 2000 COPs along with certain amendments to the District's outstanding Series 1992 and 1993 COPs, and direct staff to develop a plan for competitive selection of Remarketing Agents for the District's variable rate COPs, and report back to the FAHR Committee. Minutes of the Finance, Administration and Human Resources Committee Meeting Page4 July 12, 2000 (12) INFORMATIONAL PRESENTATIONS There were none. (13) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT Directors discussed several possible items to agendize at a future meeting, to be under the direction of Director Eckenrode and the General Manager. (15) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled for September 13, 2000 at 5 p.m. (16) CLOSED SESSION It was announced that the Committee would meet in Closed Session with the District's Labor Negotiator, Director of Human Resources, 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 6:10 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 6:25 p.m., the Committee reconvened in regular session. (17) ADJOURNMENT The Chair declared the meeting adjourned at approximately 6:25 p.m. Submitted by: flu H:\Wp.dlalagenda\FAHfflFAHR200<1t2000 Minufes'071200 FAHR MIN.doc > ' FAHR COMMITTEE Meeting Date To Bd. of Dir. 09/13/2000 AGENDA REPORT Item Number Item Number I r/fl-'U>oo-i6\ Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Stephen Kozak, Financial Manager SUBJECT: CERTIFICATES OF PARTICIPATION (COP) MONTHLY REPORTS -JULY AND AUGUST 2000 GENERAL MANAGER'S RECOMMENDATION Receive and file Certificates of Participation (COP) Monthly Reports for the months of July and August 2000. 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 months of July and August, 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 N/A BUDGET IMPACT 0 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. ~ Not applicable (information item) C:IWINNT\Profileslcrane\Personal\FAHRCOPJULYAUG091300.doc Revised: 8/20198 Page 1 ADDITIONAL INFORMATION For the months of July and August 2000, graphical and tabular reports are attached. The first graph entitled, "OCSD COP Rate History Report," shows the variable interest rates on each of the daily rate COPs since the last report, and the effective fixed rate for the two refunding issues which are covered by an interest rate exchange agreement commonly called a "swap." The second bar chart entitled, "Comparative Daily COP Rate History Report," shows the performance of the District's Daily Rate COPs as compared to a composite index rate, which represents the average rate of six similar variable rate daily reset borrowings. The third bar chart entitled, "COP Rate History, Comparison of Highest & Lowest Rates," compares the performance (monthly average interest rate) of the District's Daily Rate COPs with the highest and lowest monthly average rates from among six similar variable rate daily reset COPs. The table entitled, "COP Rate History, Comparison of Monthly Averages," shows the monthly variable interest rate performance of the District's Daily Rate COPs as compared to the composite index. Estimated annual interest payments calculated for a standard $100 million par amount, are also shown. Variable rates historically rise at the end of each calendar quarter, and especially at year-end, because of business taxes and liquidity requirements. The rates tend to decline to prior levels immediately in the following month. Staff maintains continuous rate monitoring and ongoing dialog with the remarketing agents to keep the Committee fully informed about developments in the program as they may occur. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. Graph -OCSD COP Daily Rate History Report -July and August 2000 2. Graph -Comparative Daily COP Rate History Report -July and August 2000 3. Graph -COP Rate History, Comparison of Highest & Lowest Rates -July and August 2000 4. Tabular -COP Rate History, Comparison of Monthly Averages -July and August 2000 SK:lc C:IWINNT\Profiles\crane\Personal\FAHRCOP JUL YAUG091300 .doc Revised: 8120198 Page 2 .,, G> ;; ~ c i )> RATE(%) ·!_ lP--I ~ ~ m I» 0 N w ~ C1'I 1! :1i :::J :::J Ill f:S 08-Sep-99 :::J n ~ _19 0 ~ 22-Sep-99 le i. ! 'Ti 06-0ct-99 i :::J ... n R .. :;ii 20-0ct-99 8; > )> -I m ~ ~ 03-Nov-99 c;; -I U> ...., 17-Nov-99 0 0 01-Dec-99 en 15-Dec-99 c 0 29-Dec-99 0 12..Jan-OO "'D c Tt 26..Jan-OO )> )> -r )>,, 09-Feb-OO c: -< -m Ci>-· G) ::i (/)CD $? ~~ 23-Feb-OO c: Q) (I) "O O' en C" 08-Mar-OO -I en ~ .., m .. 22-Mar-OO N :c 0 -05-Apr-OO 0 en ++ 0 -I 19-Apr-OO 0 (J)C... o=-tJ ~ o. 03-May-OO G'>s:: enc ~ 17-May-OO ;a ~ll) Q) :::> m 31-May-OO "'D 0 14-Jun-OO ~ 28..Jun-OO 12..Jul-OO 26..Jul-OO 09-Aug-OO 23-Aug-OO Prepared by Finance, 09/05/2000, 2:36 PM COMPARATIVE DAILY COP RATE HISTORY REPORT AUGUST, 2000 4.00 -~ 0 -w 3.00 .... ~ 2.00 0.00 DATE 0) O> O> O> 0 0 0 0 0 0 0 O> O> O> O> 0 0 0 0 0 0 0 ci 'tf > cS c si ..: ..: ~ c "3 I'll ~ GI 0 0 GI I'll GI ~ IV ::::J .., Cl) z 0 .., u. ~ .., •ocso CCOMPOSITE INDEX G :\excel.dta\fin\2220\geggi\Finance\deilycopintrate .xis 0 0 di ~ COP RATE HISTORY COMPARISON OF HIGHEST & LOWEST RATES 4.90 ----------------------······---------------·-····--·--··-···· .. ·--....... ._. .... -. _ _,,_.,. ____ ........................................... -. -.......................................... --... -......................................................................................................... .. 4.65 ........................................................................................................................ .. 4.40 ·····---------·--····················································-----o-•-··· 4.15 ............... ----------------···················-········-······· ·····--.. --........... .. 3.90 .. ..-........................................................................................................................... . ~ 3.65 -~ ~ 3.40 3.15 2.90 2.65 2.40 2.15 1.90 ..J.-..=-:L.1..- HJQH LOW m Highest rate G:\eXcel.dta\tln\2220'Geggl\Flnance\RATEHIST _HILO _bargraph OOCSD/J.P. Morgan • OCSD/PaineWebber C3 Lowest rate Prepared by Finance, 09/05/2000, 2:53 PM Prepared by Finance, 09/05/2000, 2:45 PM Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 AVERAGE DAILY COP RA TE HISTORY COMPARISON OF MONTHLY AVERAGES SEPTEMBER, 1999 -AUGUST, 2000 OCSD $100M $98.5M $46M Series"A" Series"C" Series 93 Ref Paine Webber J.P. Morgan Paine Webber 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 4.10 4.10 4.10 3.73 3.71 3.73 3.34 3.33 3.34 3.28% I 3.28% I 3.28% ESTIMATED ANNUAL INTEREST PAYMENTS PER $100M PAR AMOUNT $ 3.275,833 $ 3,279,167 $ 3,275,833 $ •FOOTNOTE Composite index consists of the following COP transactions: • IRWD, Series 86-COP, 88, 95, $106.1M, Solomon Smith Barney . IRWO, Series C-Ref 93-B, 85-B, $62.1 M, Lehman Brothers • IRWD, Series 91, 93, 85, $93.0M, PalneWebber • IRWD, Series 89, C-Ref 93-A, C-Ref 95, $70.9M, Merrill Lynch Composite Index* 2.98 3.03 3.38 2.97 2.50 1.99 3.22 3.49 4.73 4.11 3.74 3.33 3.29% 3,289,167 • 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, $192M, Lehman G:\excel.dta\fin\2220\geggi\Finance\COPdaily$rate comparison FAHR COMMI1TEE Meeting Date To Bd. of Dir. 09/13/00 AGENDA REPORT Item Number Item Number FAHR00-66 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 AUGUST 21 , 2000. GENERAL MANAGER'S RECOMMENDATION Receive and file the Employment Status Report. SUMMARY Total FTE headcount at the District as of August 21 , 2000 is 498.50. PROJECT/CONTRACT COST SUMMARY Not applicable. BUDGET IMPACT 0 This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. [8] Not applicable (information item) ADDITIONAL INFORMATION The District had a full-time equivalent (FTE) headcount of 498.50 as of August 21 , 2000. The actual number of employees was 511 . There were no promotions during the months of July & August: There were four new employees hired during the months of July & August: • Principal Accountant (Revenue) • Intern (2) (Air Quality & Special Projects) • Senior Engineer (Process Engineering) \lladon\clala1Wp.dta\agencla\FAHR\FAHR2000\2000 A;enda Reports\FAHR<XMl6.dot Rel/ised: 8l20l98 Page 1 ALTERNATIVES Not applicable. CEQA FINDINGS Not applicable. ATTACHMENTS August 21, 2000 Employment Status Report. Performance compared to 00-01 Budget FTE's. \"8donld8ta1\wp.dta\agenda\FAHRIFAHR2000\2000 Aiienda Repolts\FAHR~.dot R4Msed: 8f20l98 Page2 08/21/2000--10:24 AM Employment Status Report Regular Regular Actual Budget Vacant Regular Part-time Part-time FTE FTE Positions Full-time 20 hours 30hours Contract Intern LOA Count 00-01 FY00-01 11 O -General Management Adm in 3.00 0.00 0.00 0.00 0.00 0.00 3.00 3.00 0.00 Total General Management 3.00 0.00 0.00 0.00 0.00 0.00 3.00 3.00 0.00 210 -Finance Administration 4.00 0.00 0.00 000 0.00 0.00 4.00 4.00 0.00 220 -Accounting 14.00 0.00 0.00 0.00 0.00 0.00 14.00 15.00 1.00 230 -Purchasing & Warehousing 14.00 1.50 000 0.00 0.00 0.00 15.50 17.50 2.00 Total Finance 32.00 1.50 0.00 0.00 0.00 0.00 33.50 36.50 3.00 310-Communications 8.00 0.00 0.00 0.00 0.00 1.00 9.00 9.00 0.00 Total Communications 8.00 0.00 0.00 0.00 0.00 1.00 9.00 9.00 o.oo 510 -HR & Employee Development 8.00 0.00 0.75 0.00 0.00 0.00 8.75 10.25 1.50 Total Human Resources 8.00 0.00 0.75 0.00 0.00 0.00 8.75 10.25 1.50 610-Technical Services Adrnin 2.00 0.00 0.00 0.25 0.00 0.00 2.25 2.00 -0.25 620 -Environmental Compliance & Monitoring 18.00 0.00 0.00 0.00 1.00 0.00 19.00 19.00 0.00 630 -Environmental Laboratory 27.00 2.00 0.00 0.00 0.50 0.50 30.00 32.00 2.00 640 -Source Control 33.00 0.00 0.75 0.00 0.00 0.00 33.75 34.00 0.25 650 -Safety & Emergency Response 8.00 0.00 0.00 0.00 0.50 0.00 8.50 7.50 -1.00 Total Technical Services 88.00 2.00 0.75 0.25 2.00 0.50 93.50 94.50 1.00 710 -Engineering Administration 3.00 0.00 0.00 0.00 0.00 0.00 3.00 3.00 0.00 720 -Planning & Design Engineering 30.00 0.00 0.75 0.00 0.50 0.00 31.25 34.25 3.00 730 -Construction Management 35.00 0.00 0.00 0.00 0.00 1.00 36.00 36.00 0.00 Total Engineering 68.00 0.00 0.75 0.00 0.50 1.00 70.25 73.25 3.00 420 -Collection Facilities Mtce 17.50 0.00 0.00 0.00 0.00 0.00 17.50 18.50 1.00 430 -Plant Maintenance 30.50 0.00 0.00 0.00 0.00 0.00 30.50 29.50 -1.00 810 -0 & M Administration 2.00 0.00 0.00 0.00 0.00 0.00 2.00 2.00 0.00 820 -0 & M Process Support 9.00 0.00 0.00 0.50 0.50 0.00 10.00 9.50 -0.50 830 -Plant 1 Operations 32.00 0.50 0.00 0.00 0.00 0.00 32.50 33.00 0.50 840 -Plant 2 Operations 39.00 0.00 0.00 0.00 0.00 0.00 39.00 38.50 -0.50 850 -Mechanical Mice 44.00 0.00 0.00 0.00 0.00 0.00 44.00 44.50 0.50 860 -Electrical & Instrumentation Mtce 55.00 0.00 0.00 0.00 0.00 0.00 55.00 55.50 0.50 870 -Cogeneration 8.00 0.00 0.00 0.00 0.00 0.00 8.00 9.00 1.00 880 -Air Quality & Special Projects 9.00 0.00 0.00 0.00 1.00 0.00 10.00 10.50 0.50 Total Operations & Maintenance 246.00 0.50 0.00 0.50 1.50 0.00 248 .. 50 250.50 2.00 910 -IT Admin 2.00 0.00 0.00 0.00 0.00 0.00 2.00 2.00 0.00 930 -Customer & Network Support 12.00 0.00 0.00 0.00 0.00 0.00 12.00 12.00 0.00 940 -Programming & Database Sys 9.00 0.00 0.00 0.00 0.00 0.00 9.00 10.00 1.00 950 -Process Controls Integration 9.00 0.00 0.00 0.00 0.00 0.00 9.00 9.00 0.00 Total Information Technology 32.00 0.00 0.00 0.00 0.00 0.00 32.0D 33.00 1.00 Total Staffing 485.001 4.001 2.251 0.751 4.001 2.50 498.50 510.00 11.50 Offers Outstanding: 2.00 Recruitments pending, but not offered: 9.50 Actual FTE's wl1h current recn.altments filled: 610.00 g:,exoel,dta\hr\510\we1ngarden\Employment Status Report Performance to Staffing Plan 520 515 ··-. -.. _._ --·---·-. -. -. -. --510 -. -. -. ---. -- 505 500 495 • ~ ... ..... '~ "Y - ..... -.. • 490 485 • FTE Headcount -·• · -Staffing Plan 480 I I I I I I I I I I I ' I I T T T 1 T I I I I J A s 0 N D J F M A M J J A s 0 N D J F M A M J J I FY 99-00 I I FY 00-01 I ---------- l FAHR COMMITTEE Meeting Date To Bd. of Dir. 09/13/2000 AGENDA REPORT It.em Number Item Number FAHR()().67 Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Stephen Kozak, Financial Manager SUBJECT: QUARTERLY INVESTMENT MANAGEMENT PROGRAM REPORT FOR THE PERIOD APRIL 1, 2000 THROUGH JUNE 30, 2000 GENERAL MANAGER'S RECOMMENDATION Receive and file the Quarterly Investment Management Program Report for the period April 1, 2000 through June 30, 2000. SUMMARY Section 15.0 of the District's Investment Policy includes monthly and quarterly reporting requirements for the District's two investment portfolios. These two funds, the "Liquid Operating Monies," and the "Long-Term Operating Monies," are managed by PIMCO, the Districfs external money manager. The ongoing monitoring of the Districf s investment program by staff and Callan Associates, the District's independent investment advisor, indicates that the District's investments are in compliance with the District's adopted Investment Policy and the California Government Code, and that overall performance has tracked with benchmark indices. In addition, sufficient liquidity and anticipated revenues are available for the District to meet budgeted expenditures for the next six months. The District1s portfolios do not include any reverse repurchase agreements or derivative securities. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT 0 This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. ~ Not applicable (information item) H:\wp.dta\agenda\Fl'IHR\FAHR2000.2000 Agenda Rll!'Of!SIFl'IHR00-67.doc R"'1ised: 8/20/98 Page 1 ADDITIONAL INFORMATION Performance Reports The Quarterfy Strategy Review, prepared by PIMCO, and the Investment Measurement Quarterty Review, prepared by Callan Associates, are attached for reference. Also attached are four comparative bar charts which depict the sector diversification and credit quality of the District's portfolios, as of March 31 , 2000 and June 30, 2000. The Liquid Operating Monies portfolio, with an average maturity of 90 days, consists entirely of cash equivalent investments such as U.S. Treasuries and corporate discount notes. Portfolio Performance Summary The following table presents a performance summary of the District's portfolios as compared to their benchmarks for the period April 1 through June 30, 2000. Portfolio Performance Summary Quarter Ended June 30, 2000 Liquid Operating Monies (%) Lonir Term Operating Monies (%) ·~ lo ,,1' : ~ .. ~ ·'Total Rate,~ J.~ ~-:r.o -;F~ -illf:Otal Ratetot ~ 1 1u .1.~! :,-n ... It "' •ii! -·---j§' *lr Pm " of'Retutn"~ '"B h rt(llb. f'tE '"''Retiirri . · _ ~erir;:hmar.ili:,~if .tl: ~ ~! '" . -· !:enc ma -~~ = .,,jl;, ...... ,r .. *'".it 3Months 1.6 1.4 1.9 1.7 6Months 3.2 2.8 3.6 3.0 9Months 4.6 4.1 4.2 3.4 12 Months 6.0 5.3 5.4 4.6 Since inception 30 Sept. 95 5.6 5.2 6.2 5.8 ·-._.tt'i'H~; "" !hr~ !llt ,c t-l' c.fll!L .. -~~~ ::;maj~~ .• :rr.L ~fllill!fi~:1l~Hr .. ~: .. '"' I "'""""" i'i ... "'' -'; Market Value per PIMCO 30 Jun 00 $33.3M $358.2M Average Quality "AA+" "AA+" Current Yield (%) 6.4 6.3 Estimated Yleldto Maturity ('lit) 6.6 6.9 Quarterty Oepo&itS (Withdrawals) $13.0M Estimated Annual Income $2.1M $22.SM (1) Benchmarks: • Liquid Operating Portfolio: 3-Month Treasury Bill Index • Long-Term Operating Portfolio: Merrill Lynch Corp/Govt. 1-5 Year Bond Index Market Recap Interest rates at the short and intermediate segments of the Treasury yield curve showed mixed changes during the second quarter amid cautious optimism that Federal Reserve tightening was beginning to cool the economy and contain inflation. Yields on longer-term Treasuries were little changed. At their May 16 meeting, the Federal Reserve raised the fed funds rate by 50 basis points to 6.50%, the highest level in nine years. This marked the central bank's sixth rate increase since June 1999. The size of the increase confirmed that the Fed's recent policy of gradual rate hikes (25 basis points) was insufficient to slow an economy that H:lwp.cltalllgenda\FAHRIFAHR20002000 Agenda Repons\FAHR00-87.doe ReYised: 8/20/98 Page2 grew by more than 5% in each of the last three quarters. The fed believes that this fast rate of growth could trigger inflationary increases. While the Fed left rates unchanged at their June meeting, amid signs that the higher rates from their May meeting were starting to slow the economy, the Fed said " ... signs that growth in demand is moving to a sustainable pace are still tentative and preliminary." Further, the central bank warned of " ... heightened inflation pressures in the foreseeable future, n suggesting that more interest rate tightening may be needed. Rising energy prices, especially for retail gasoline, were one reason for concern. Also, risks posed by economic imbalances such as a tight labor market, an expanding U.S. trade deficit, and high levels of consumer and corporate debt, remained firmly in place. Short-term interest rates fell by two points for the 3-month Treasury rate (from 5.87% to 5.85%), while the one-year Treasury rate rose by 20 basis points (from 6 .25% to 6.45% ). At the same time, long-term rates also showed modest increases. As depicted in the attadled comparative graph of the Historical Yield Curve, the yield on the 30-year Treasury benchmark increased 6 basis points, closing the second quarter at 5.89% when compared to the end of the first quarter 2000 at 5.83%. Yields on 10-year Treasury bonds ended the quarter at 6.04%, an increase of 4 basis points from the end of the first quarter (6.00%). For the Long-Term Operating Monies portfolio, PIMCO maintained a slightly below index weighted maturity or duration (2.2 vs. 2.3 years}. emphasizing holdings in mortgage-backed securities, asset-backed securities, and real return bonds. The performance of the portfolio outperformed its benchmark by 21 basis points for the second quarter 2000 (1.90% vs. 1.69%). For the Liquid Operating Monies portfolio, PIMCO maintained a slightly above index duration (approximately 108 days vs. 90 days), emphasizing agency discount notes and high-quality commercial paper. This added returns to the portfolio, which outperformed its benchmark by 16 basis points for the second quarter (1 .60% vs. 1.44%). Market Outlook Forecasts from PIMCO report that U.S. economic expansion will slow to approximately 3% over the next several years as higher interest rates curb growth. PIMCO expects that this deceleration will gradually lower interest rates on high-quality bonds by capping U.S. inflation near the 3% level. The PIMCO investment strategy targets portfolio duration near or slightly above the benchmarks to take advantage of higher yields provided by longer maturity securities, while limiting overall interest risk. PIMCO indicates that they will continue to hold upper tier short and intermediate maturity corporate issues to take advantage of relatively higher yields; emphasize real return bonds, which will gain from higher inflation adjustments; hold U.S. government agency discount notes, which have a yield premium over Treasury bills; concentrate on high quality commercial paper for liquidity; and H:\wp.dta1agendalFAHRIFAHR20000.000 Agend1 RepottalFAHROIMl7.doe R9'Med: 8l2tW8 Page3 emphasize asset-backed securities and mortgages, especially GNMA's which are backed by the "full faith and credit" of the U.S. government, to capture higher relative yields. The attached letter from PIMCO provides a more detailed description of second-quarter market conditions, portfolio returns, future market outlook, and their recommended investment strategy for the District's Liquid and Long-Term Operating Monies portfolios. Portfolio Market Values On May 19, 2000, the District received the sum of $13.0 million from the Orange County Tax Collector's property tax allocation cycle. The funds were deposited in the District's Liquid Operating Monies portfolio for investment. Comparative marked-to-market quarter-end portfolio values are shown in the table below, and in the attached bar chart. Liquid Quarter Operating Ending Mooies ($M, ALTERNATIVES NIA CEQA FINDINGS NIA ATTACHMENTS 1. PIMCO Report 2. Callan Report 30June 99 19.0 30 SePI. 99 19.3 31Dec.99 19.6 31March00 19.9 30June00 33.3 3. Quarter End Portfolio Market Value Bar Chart 4. Four Comparative Bar Charts 5. Historical Yield Curve Graph 6. PIMCO Letter dated August 29, 2000 SK: le H:\wp.dllllagenda\FAHRIFAHR~ Agenda Repofts\FAH~7.doc RIMllCld: 8l20l98 Long-Tenn Operating Monies($M, 305.9 271 .1 282.9 351.6 358.2 Page4 Prepared by Finance, 09/01 /2000, 3:18 PM $350 I 000 I 000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 OCSD Investment Management Program Quarter End Portfolio Values (Marked-to-Market) 30 Jun 99 30 Sep 99 31 Dec 99 31Mar00 30 Jun 00 lo Liquid Operating Monies lfJ Long-Term Operating Monies I G:\excel.dta\fin\2220\geggi\Finance\investmgmtprogram Prepared by Finance, 09/01/2000, 3:21 PM G:\excel.dta\fin\2220\geggi\Finance\Portfolio short term Prepared by Finance, 09/01/2000, 3:24 PM OCSD Long-Term Operating Monies Portfolio Investment Credit Quality 100 90 80 70 .-. ~ 60 D 3/31/00 0 ._.. +" 49 ~ 6/30/00 c 50 Q) 0 ..... 40 Q) a_ 30 22 20 10 0 A1/P1 AAA AA A G:\excel.dta\frn\2220\geggi\Finance\Portfolio long term graph Prepared by Finance, 09/01/2000, 3:26 PM OCSD Liquid Operating Monies Portfolio Investment Diversification 100100 0 0 0 0 0 0 0 0 Mtg Corp Non US$ Other Net Cash Equivalent G:\excel.dta\fin\2220~eggi\Finance\Portfolio short term D 3/31/00 ~ 6130100 Prepared by Finance, 09/01 /2000, 3:26 PM ..-.. ~ 0 .._.. 100 90 80 70 60 OCSD Long-Term Operating Monies Portfolio Investment Diversification D 3/31/00 ..foJ c 50 Q) _________________ 4_8----1 ~ 6130100 0 40 39 L.. Q) 37 a. 30 20 10 0 0 0 1 0 Govt Mtg Corp Non US$ Other Net Cash Equivalent G:\excel.dta\fin\2220'{:ieggi\Finance\Portfolio long term graph Prepared by Finance, 09/05/2000, 9:16 AM I HISTORICAL YIELD CURVEI 7.00 6.75 6.50 6.25 6.00 -5.75 ~ 0 _J 5.50 UJ > 5.25 5.00 4.75 4.50 4.25 4 .00 0 0 E E .., tO -+-31-0ec-99 -t.-31-Mar-OO ---30-Jun-OO G:\excel.dta\fin\2220\geggi\Finance\HistoricalTREASURYyieldcurve .. ~ 0 N .. August 29, 2000 Mr. Steve Kozak Finance Manager Orange County Sanitation District P.O. Box 8127 Fountain Valley, CA 92728-8127 Re: 2nd Quarter 2000 Report Dear Steve: PIM C 0 840 Newport Center Drive Sulte 300 Newport Beach. CA 92660 Tel: 949.720.6000 Fax: 949.720.1376 What follows is a description of events in the bond markets during the 2nd Quarter 2000 and an analysis of the strategies undertaken in the Orange County Sanitation District's Long-Term and Liquid portfolios over the period. I have also included a section on strategies to be pursued in your portfolio during the coming months . Bond Market Recap: Fed Tightens By 50 Basis Points To Cool Rapid Expansion Short/intermediate interest rates fell modestly amid cautious optimism that Federal Reserve tightening was beginning to cool the economy and contain inflation. Yields on longer-term Treasuries were little changed. The yield on the 10-year Treasury note ended the quarter at 6. 02 percent, up one basis point from the previous quarter. On May 16 the Fed raised the federal funds rate by 50 basis points to 6.5 percent, the highest level in nine years. It was the central bank's sixth rate increase since last June. The size of the increase confirmed that the Fed's recent policy of gradual, 25 basis point rate hikes was insufficient to cool an economy that grew by more than five percent in each of the last three quarters. That pace is faster than the Fed believes is possible without triggering an increase in inflation. The Fed left rates unchanged in late June amid signs that higher rates were starting to have the desired effect. Economic reports in April and May showed the first back-to-back declines in retail sales in two years, falling employment, reduced new home construction and little change in consumer prices. Nevertheless, the Fed said "signs that growth in demand is moving to a sustainable pace are. still tentative and preliminary." The central bank also warned of "heightened inflation pressures in the foreseeable future,'' suggesting that more tightening may be needed. Rising energy prices, especially for retail gasoline, were one reason for concern. Risks posed by Mr. Steve Kozak August 29, 2000 Page Two Orange County Sanitation District economic imbalances such as the tight labor market, an expanding U.S. trade deficit and high levels of consumer and corporate debt also remained firmly in place. ECB Tightens as Inflation Rises; Japan Sees Growth The European Central Bank continued to tighten during the second quarter. Faster growth and higher oil prices sparked a pickup in eurozone inflation, especially in Germany, where June consumer prices rose at the fastest pace in three years. The Japanese economy showed signs of life, expanding in the first quarter after contracting for the two previous quarters. Still, doubts remained about the durability of the expansion. While business confidence and investment rose, Japanese consumer spending remained weak. Treasuries and Mortgages Are Best Performing Sectors Treasuries and mortgages outperfonned as investors continued to favor securities with superior credit quality. The following summarizes relative sector performance: • Mortgages outpaced Treasuries, benefiting from light new issuance and attractive yield premiums. Conventionals slightly outperformed GNMAs after a late-quarter rally, but GNMAs remained the best performers for the year-to-date. • Corporates bounced back after poor recent performance but still lagged Treasuries. Investment-grade and high yield bonds benefited in June from optimism that the economy would slow without the need for more Fed tightening. • Emerging markets performed worst despite improving economic fundamentals. Volatile stock markets and Fed tightening induced greater risk aversion among investors. • Dollar-bloc bonds, especially Australia and New Zealand, outperformed Treasuries and other developed countries as interest rates fell amid signs of slower growth. Per[onnanceAttributi.on: Long Term Portfolio The Long-Term portfolio that PIMCO manages on behalf of Orange County Sanitation District turned in a 1.90 percent return over the quarter, outperforming the Merrill Lynch 1-5 year Government Corporate Index by 21 basis points. This portfoliots performance was due in part to the following factors: • • Below-benchmark duration had a slightly negative impact on returns as intermediate rates fell A broader-than-index maturity structure was modestly positive as intermediate-maturity interest rates declined PACIFIC INVESTMENT MANAGEMENT COMPANY Mr. Steve Kozak Orange County Sanitation District August 29, 2000 Page Three • Emphasizing mortgages was positive as the sector benefited from light new issuance and relatively high yields • Underweighting corporate holdings detracted from returns as corporates lagged Treasuries due to widening yield premiums • Asset-backed securities enhanced performance due to attractive yields compared to other short-term instruments • Real return bonds helped returns as their increasing inflation adjustment more than offset a rise in real yields Liquid Portfolio The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District turned in a 1. 60 percent return over the quarter, outperforming the 3 month Treasury Bill Index by 16 basis point. This portfolio's perfonnance was due in part to the following factors ~ • fuvestment-grade corporate holdjngs detracted from performance as credit premiums widened .. Use of high quality commercial paper and agency discount notes boosted returns for the quarter. Economic Outlook: Secular Outlook: Bullish Amid Slowing of U.S. Economy PIMCO's secular outlook is bullish based on expectations of a slowing U.S. economy, leading to maximum U.S. and global growth of three percent over the next several years. This deceleration will gradually lower interest rates on high quality bonds by capping inflation near three percent in the U.S. and closer to two percent in Europe. U.S. expansion will slow amid correction of unsustainable imbalances such as the shrinking pool of available labor and a swelling trade deficit financed with a large share of the world's savings. Restrictive policy by central bankers worldwide -in contrast to liquidity infusions of the last few years -will also inhibit growth, There is a greater than 50 percent chance that the global economy will dip into a recession over our secular horizon. Five forces could produce this outcome: 1) Central Bank Overreach -The Federal Reserve and other central banks could tighten too much or for too long. Monetary authorities may be forced to sustain restrictive policies to PACIFIC INVESTMENT MANAGEMENT COMPANY Mr. Steve Kozak Orange County Sanitation District August 29, 2000 Page Four deflate bubbles in housing and stock markets that stimulate consumption and ultimately inflation. 2) Emerging Market Contagion -Emerging economies are stronger than two years ago, with higher currency reserves, less short-term debt and financial reforms under way . Even so, countries with fixed currency regimes remain vulnerable to rising interest rates brought on by central bank tightening. 3) Japanese Economic Drag -Large fiscal deficits and tentative economic and political reforms could undermine confidence in Japan, pushing interest rates higher and depressing the already sluggish Japanese economy. Further weakness in Japan, the economic center of Asia, would reverberate elsewhere. 4) The U.S. Equity Bubble -Rising stock markets have recently generated wealth gains that fueled consumer and investment spending. With equity markets now off their peaks, consumption and investment could follow. S) Flight From The Dollar -A falling dollar due to the rising U.S. trade deficit or lower stock prices would unsettle bond markets worldwide. Investors would flee to safe havens in local markets, driving up yields on riskier assets and curbing growth. In contrast with recent financial crises, investors will not be able to count on rescue by the Fed or the International Monetary Fund in the event of a slowdown and/or recession. Fed Chairman Greenspan has said he ."would anticipate appropriate discounts or 'haircuts' for other than federally guaranteed liabilities" if borrowers get into trouble. In other words, investors will be "bailed inf' instead of "bailed out." This absence of support will increase risk and raise the cost of capital for all but AAA-rated sovereign borrowers. Cyclical Outlook: The Fed Will Engineer Slower Growth While the Fed's tightening cycle is almost over, monetary policy will remain restrictive until a slowdown is confirmed. Fed tightening will continue until growth slows to a pace that is sustainable without fueling inflation. Given the direction of Fed policy and higher levels of risk for non-sovereign debt, protecting principal will be the key to earning superior relative returns. Treasuries, "full faith and credit" mortgages such as GNMA's and higher quality corporates are prudent alternatives for pursuing this strategy. Strategy: The following lists highlights the strategies that will be used in the Long Term portfolio in the coming months: PACIFIC INVESTMENT MANAGEMENT COMPANY Mr. Steve Kozak Orange County Sanitation District August 29, 2000 Page Five • Target duration slightly above the bench.mark to take advantage of higher yields on longer- maturity securities • Maintain a broader-than-index maturity structure in order to capture value across the yield curve • Emphasize mortgages, where credit risk is minimal and attractive yield premiums provide a cushion against adverse price performance • Hold upper tier, short/intermediate corporate issues to take advantage of relatively high yields • Continue to emphasize real return bonds, which will gain from higher inflation adjustments in the months ahead • Employ asset-backed securities as relatively high yielding alternatives to other short-term holdings The following lists highlights the strategies that will be used in the Liquid portfolio in the coming months: • • • Target duration near the benchmark to limit interest rate risk Take advantage of relatively high yields on select upper-tier, short corporate issues Hold agency discount notes, which have a yield premium over Treasury bills . Invest in high quality commercial paper as a means to add value and liquidity in the portfolio. Steve, I hope this information proves useful. I look forward to discussing these and other issues with you in the near future. ~AF~ Joseph A. F ownier Account Manager ~{t n·J,~~ (:pC Christine Telish Account Manager PACI.FIC INVESTMENT MANAGEMENT COMPANY 1 FAHR COMMITTEE Meeting Date 09/13/00 AGENDA REPORT Item Number FAHR.00-68 Orange County Sanitation District FROM: Blake Anderson, General Manager Originator: Greg Mathews, Assistant to the General Manager SUBJECT: FY 1999/00 END-OF-YEAR OPERATIONAL REPORT GENERAL MANAGER'S RECOMMENDATION Receive and file FY 1999-00 End of Year Operational Report SUMMARY The Strategic Goals Workplan and budgetary Performance Objectives are annual planning tools designed to assist staff in reaching best-in-class status. Staff and District-wide performance is compared to pre-set benchmark standards or milestone targets as reflected in these tools. This comparison is designed to show how well we have completed duties and responsibilities compared to our expectations. The FY 1999/00 Workplan, developed as a separate product and distributed to the Committee at the beginning of last several fiscal years, details projects, programs, objectives and tasks designed to achieve District-wide Strategic Goals. Milestones were identified that represented successful completion of a major task. Completion of these task milestones was identified as important to the success of the agency. The budgetary performance objectives identify division-wide specific and measurable functions that staff are expected to perform. These objectives, detailed in the 1999/00 Budget, are indicative of major day-to-day or special project functions. Actual performance is measured against established benchmarks, and staff are held accountable for the results achieved. The FAHR Committee and Board have been kept apprised of quarterly progress regarding the workplan and performance objectives in the Financial and Operational Reports. At the end of the fiscal year, the Finance Department prepares a Comprehensive Annual Financial Report (CAFR) that is presented to the FAHR Committee in November. As the CAFR replaces the financial component of the Finan'cial and Operational Report, a stand-alone, end-of-year operational report is provided for the Committee's review. H:lwp.dta'lllgencla\FAHR\FAHR20000000 Agenda Repons\FAHRoo.88.doc RIMsed: 115198 Page 1 To.Jt. Bds. Item Number PROJECT/CONTRACT COST SUMMARY Not applicable. BUDGET IMPACT D This item has been budgeted. 0 This item has been budgeted, but there are insufficient funds. 0 This item has not been budgeted. [XI Not applicable (information item) ADDITIONAL INFORMATION Divisions and departments overall achieved 74% of their year-end budgetary performance objectives. Although this is slightly below the 80% benchmark expected, it represents significant accomplishments. During a Board Budget Workshop in FY 97 /98, several Directors urged staff to elevate many departmenUdivision performance objectives to best-in-class status. Staff complied with this request. As a result, however, some objectives have been missed as little room for error was provided. Regardless of our collective inability to achieve the 80% overall benchmark, staff believe we have generally performed very well, given the best-in-class performance expectations. Through FY 1999/00 we have completed 201 of 276 Strategic Goal Workplan tasks-73%. Although we were behind schedule on many tasks throughout the year as reflected in our Quarterly Financial and Operational Reports, we were able to complete many delayed projects before the close of the 4th quarter. We did not properly anticipate or plan for the huge amount of resources that would be dedicated to the Y2K compliance efforts. This project delayed many other lower priority projects to subsequent quarters and fiscal year 00/01 . Last summer we had the unexpected Huntington Beach Closure Project that required unexpected staff resources. Finally, one of the unfortunate outcomes of continued downsizing is the need for remaining staff to focus on core business as opposed to Strategic Goal initiatives. In many instances staff resources were not available to dedicate to workplan tasks as they were committed to core business functions. The attached report provides details related to performance objectives and workplan tasks. Staff will be available to answer questions regarding the content of this report. ALTERNATIVES Not applicable. H:\wp.cltalllgendall"AHRIFAHR20000000 Agenda Reporta\FAHRQ0.66.doc RMed: 115198 Page2 CEQA FINDINGS Not applicable. ATTACHMENTS 1. End-of-Year Operational Report GM H:'twp.dta"'9ofld9IFAHRIFAHR2000\2000 A9lflda R~IFAHRoo.e8.doc R~ 115198 Page3 FAHR COMMITTEE Meeting Date To Bd. of Dir. 9/13/00 N/A AGENDA REPORT It2m Number It2m Number FAHR00-69 Orange County Sanitation District FROM: Marc Dubois, Contract I Purchasing Manager SUBJECT: GENERAL MANAGER APPROVED PURCHASES GENERAL MANAGER'S RECOMMENDATION Receive and file report of General Manager approved purchases in amounts exceeding $50,000 in accordance with Board purchasing policies. SUMMARY In May 1998, the FAHR Committee and the Board approved changes to the staff purchasing authority. One of the changes was to increase the dollar threshold before Board authority was required for purchases of goods or services, excluding public works purchases, to $100,000. When approving this change, the Committee asked for periodic reports showing purchases approved by the General Manager for amounts between $50,000 and $100,000. Subsequent to receiving the initial report, the Committee requested that future reports be placed on the Consent Calendar. Vendor Name Amount Description/Discussion The Lewis Group $96,917.50 Consultant for Project Manaoement Schwing America, Inc. $81 , 116.51 Modifications to nine Sludge Pumps AT&T Wireless Services $60,000.00 Blanket order for Cellular Air Time Dell Computers $90,000.00 Blanket order for Miscellaneous Equipment (non-capital} Parker Supply Company $64,633.56 1 O" Mechanical Split Seal FileNET Corporation $89,728.17 Software & License Maintenance for IDMDS Server Section 2.03A1 of Resolution 99-23, the District's Delegation of Authority Resolution, authorizes the General Manager to purchase items that have been previously authorized by the Board as identified in the annual District budget. During the budget adoption process, the lists of these items were highlighted for the Directors. For these reasons, purchases that fell into these categories are not included in this report. PROJECT/CONTRACT COST SUMMARY N/A H:\wp.dta\agendalFAHRIFAHR:zooruoCJO A"9flda ReportslFAHRoo.69.cloc Revised: 8/20/96 Page 1 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. 1:8] Not applicable (information item) ADDITIONAL INFORMATION NIA Al TERNATIVES NIA CEQA FINDINGS NIA ATTACHMENTS None. H:\wp.dta\agendll\FAHRIFAH~ Agenda R9"0!1llFAHRCXMl9.doc RMed: 8/20/98 Page2 ' FAHR COMMITIEE Meeting Date To Bel. of Dir. 09/13/2000 AGENDA REPORT Item Number Item Number Fll~{)()-?l Orange County Sanitation District FROM: Marc Dubois, Contracts/Purchasing Manager SUBJECT: ESTABLISH A PERMANENT PROCUREMENT CARD PROGRAM GENERAL MANAGER'S RECOMMENDATION Authorize the Contracts/Purchasing Manager to transition from the pilot phase, to a permanent, full-scale procurement card program. SUMMARY In July of 1999, the Contracts/Purchasing Manager received approval to implement a Pilot Procurement Card Program in an effort to assess opportunities for streamlining procurement processes and reducing costs associated with purchase orders. Other benefits such as reducing invoice volume in Accounts Payable, leveraging new technology, improving vendor relations, and providing metrics on purchasing were also expected to be recognized. · Several notable independent consultant companies, DMG Maximus, Hilton, Farnhoph & Hobson, and Ernst & Young, had strongly recommended the implementation of a procurement card system to increase staff efficiencies and save money on transactional costs for small dollar procurements. In addition, over three hundred and fifty (350) state, city and special districts have a permanent procurement card system in place, including the majority of our District's member cities. The Purchasing and Warehouse Division has administered the pilot program for over one (1) year and has been pleased with it's strong controls and reporting capabilities. The District will maximize savings _with the permanent program in the areas of travel and leverage buying. American Express has Fortune 100 Company pricing of Maintenance Repair and Operations (MRO) goods and services available to the District, despite our historically low volume of expenditures in some of these commodities and services . PROJECT/CONTRACT COST SUMMARY 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. ~ Not applicable (information item) C:IWINNi\Profileslryan\Personal\FAHR 091300AmEx ProCard.doc Revised: 8120/98 Page 1 ADDITIONAL INFORMATION Various financial experts such as Ernst & Young suggest that public agencies can spend up to $96 to process a purchase order and cut a company check for each purchase they make -large or small. In fact, for most agencies, the number of repetitive, low dollar, non-strategic purchases is substantial, with as much as 80% of an agency's purchasing transactions accounting for only 20% of its total purchasing dollars. It has been estimated that a procurement card program can shave an average of $52.00 (see attachment) off each transaction for a participating agency. In addition, the elimination of small, repetitive procurements provides staff more opportunities for value- added functions such as enhanced contract analysis, aggressive negotiations on commodity contracts, e-commerce, and other progressive cost saving strategies. Our well managed procurement card program offers a convenient and cost effective purchasing mechanism with spending, commodity and supplier restrictions built directly into the card. The restrictions include the maximum amount to be spent per transaction, per day, and per month. The controls established with each card provide checks and balances as transaction are made, not after the purchase has been made. If a purchase outside the controls is attempted, the charge will be declined at the point of sale. Additionally, the District has designed and implemented policies and procedures, including management review, for use of a card. The total net billings from August 1999 through August 2000 have resulted in more than 400 purchase transactions with total expenditures in excess of $150,000 using the District's procurement cards. District reports have demonstrated our procurement cards have already saved the District $21 ,000 or 14% of the $150,000 spent. Based upon District's other expenditures for the same reporting period, also for purchases of less than $1 ,000, a total cost savings of $32,000 annually could have been realized . The conservative expansion of the procurement card program will significantly increase cost savings and provide further opportunities to concentrate on progressive cost savings strategies. Since the inception of the Pilot ProCard Program, the District has not experienced any problems such as misuse of the cards. ALTERNATIVES Maintain the Pilot ProCard Program until such time the FAHR Committee approves a permanent program; continue to use the purchase order procedure augmented by petty cash reimbursement and hand check preparation. CEQA FINDINGS NIA ATTACHMENTS Process MAP for cost savings. C:\WINN1\Profiles\ryan\Pe<&onanFAHR 091300AmEx ProCard.doc Revised: 8/20/98 ~~ge 2 OCSD's Purchasing Card Program Data Input (Assumption: Employee $35,000 salary+ 28% Benefits) Traditional TargetCPC Process Time Process Time Requisitioner !minut£fil Costs (minutes} .com Establish Need 6 2.24 3 1.12 Seek Info on Supplier, Price, Delivery 9 3.36 5 l.87 Write Requisitton and Specifications 7 2.61 4 1.49 Assign Ac.count Codes 0.37 J 0.37 Forward to Manager for Approval 2 0.75 Check and Approve Requisition 5 1.87 Additional Approvals 5 1.87 Forward Completed Requisition to Purchasing l 1.12 Order from Preferred Supplier 5 1.87 Record Purchase in Transaction Log 3. 1.12 Subtotal 38 $14.19 21 $7.84 Purchasing Filing and Distribution 10 3.73 Discussion with Requisitioner 5 1.87 Seek Info. on Supplier, Price, Delivery 15 5.60 Establish Purchase Order 9 3.36 Transmit PO to Supplier 1 2.61 Q a.oo Subtotal 46 $17.17 0 $0.00 Receiving Receive and Inspect Goods 12 4.48 5 1.87 Match Receipt with PO 10 3.73 Record Receipt 4 1.49 Deliver Goods lo Requisitioner 2Q 7.47 2Q ~ Subtotal 46 $17.17 25 $8.27 .RtQUisitinn.ct Receive & Check Goods .8 Receive & Check Goods 5 1.87 Record in Transaction Log 1 0.37 Subtotal 8 $2.99 6 $2.24 A,wwnts Payable Receive Invoice and match to PO & Receipt 32 1 l.95 Cut company check and mail to Supplier ll 5.60 D...i Q.12. Subtotal !t1 SU.SS !l..5 $0.19 Total 185 $~ 52.5 $18.53 - SAVINGS PER TRANSACTION $50.53 L I 1 FAHR COMMIITEE Meeting Date 09/13/00 AGENDA REPORT Item Number FAHR00-71 Orange County Sanitation District FROM: Blake Anderson, General Manager Originator: Lisa Tomko, Director, Human Resources & Employee Development SUBJECT: Compensation and Classification Study GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to solicit proposals and award a Consultant Services Agreement for a District-wide compensation and classification study (Specification No. P-192) in an amount not to exceed $120,000. SUMMARY For the past eight years, it has been the practice of the Human Resources Department to conduct a compensation and classification study every other year. This study consisted of selecting approximately 30 benchmark classifications, developing a survey including broad job descriptors of those classifications and distributing that survey to the District's ten benchmark agencies to compare matching or related classifications. In the course of the District's labor negotiations with OCEA, Local 501 and SPMT, we learned there is a common belief among employees that District job classifications have not been adequately compared to positions in other benchmark agencies. All three unions have requested that a comprehensive study including all classifications be completed their unit. Management agrees that it is time to do a classification study of this scope. As we complete the task of developing a new five-year business and staffing plan we need to ensure that the positions are classified correctly and that those classifications are allocated appropriately. Our approach will be to include District staff whenever possible to help with the task of matching positions as closely as possible. The goal of the proposed study is to review and update the District's Compensation and Classification Plans. This study is intended to accomplish the following objectives: To.Jt. Bds. 9/27/00 Item Number 1. Update duties, responsibilities, and minimum qualifications to accurately reflect all current positions. 2. Remove obsolete classifications from the District's current listing. H:lwp.dtalagencla\FAHRIFAHR200Q2000 Agenda Reports\FAHRC0.71.doe Page 1 3. Conduct a cost analysis and recommend an implementation schedule to adjust those classes that are out of alignment. 4. Ensure compliance with the Americans with Disabilities Act by incorporating physical demands and essential functions into each class specification. 5. Provide legally defensible, understandable, and rational classification and salary plans. 6. Define an appropriate labor market for salary review purposes. 7. Establish a framework for evaluating employee job performance during probationary and continuing periods of employment and designing human resource development programs. 8. Establish appropriate job classifications, classification series, and benchmark classifications for setting internal alignment. 9. Create career ladders to facilitate employee upward and lateral mobility. 10. Establish appropriate and consistent titling for classifications. 11. Reduce, where possible, the number of classifications and classification levels. 12. Provide resource information for future reference consisting of all working papers such as job analysis questionnaires, class specs and salary data collected from organizations surveyed, and related material. 13. Train Human Resources Department staff in the methodology used to develop and implement the classification and salary plans to facilitate maintenance and updating of the plans in the future. Based on the elements above, a Request for Proposal will be distributed to professional compensation and classification firms to conduct this study. Based on the content of the proposals, proposed cost and subsequent interviews with candidates, the most qualified consulting firm will be selected. It is expected the study will begin near the end of October with results provided by late spring, 2001. The Human Re.sources Department will closely monitor the study and provide the FAHR Committee regular updates as the project progresses. PROJECT/CONTRACT COST SUMMARY Based on the 115 distinct classifications within the District, the breadth of the scope of work, and estimated consultant time required, it is projected the cost of the contract will be $115,000 to $120,000. If the proposals exceed this amount we will return to the Committee and Board for additional direction prior to contract award. H:\wp.dlalagenda\F/\HRIF AHR2000.2000 Agenda ReportslFAHR00-71.doc Page2 BUDGET IMPACT D This item has been budgeted. D This item has been budgeted, but there are insufficient funds. ~ This item has not been budgeted. D Not applicable (information item) This item has not been budgeted as a distinct project in FY 00/01 , but there are sufficient funds in the General Manager's contingency fund to accommodate this study. ADDITIONAL INFORMATION NIA ALTERNATIVES 1 . Conduct the traditional in-house compensation and classification study using certain classifications as benchmarks. CEQA FINDINGS NIA ATTACHMENTS NIA H:\wp.dtalagenda\FAHR\FAHR~ f.genda Reports\FAHR00.71.doc; Page3 I· j FAHR COMMITI'EE Meeting Date To Sd. of Dir. 9/13/00 9/27/00 AGENDA REPORT Item Number Item Number FAHR00·72 Orange County Sanitation District FROM: Lisa Tomko, Director of Human Resources & Employee Development SUBJECT: CREATE TWO NEW CLASSIFICATIONS GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 00-_, Amending Resolution No. OCSD 98-33, Amending Human Resources and Policies Procedures Manual, providing for: 1. Create Communications Services Manager classification at pay range E 13 ($67, 128 -$94,932); and, 2. Create HRIS Analyst classification at pay range ES ($45,396-$64,212). SUMMARY From time to time, adjustments need to be made to a classification structure. As new duties and responsibilities are identified as critical to the mission of the organization, new classifications must be added or titles must be changed. Staff has identified two job classification needs due to organizational changes that have taken place in the past few months. The funds for these changes have been accounted for in the FY00/01 budget. The recommended additional classifications are as follows: 1. A new classification of Col'T!munications Services Manager is being proposed at pay range E13($67,128 -$94,932). The new classification is necessary due to the recent reorganization of the Communications Department that will allow the District to focus on internal and external communications more thoroughly. This reorganization eliminated the Director of Communications position. Please see the attached classification description, Attachment 1. 2. A new classification of Human Resources Information Systems (HRIS) Analyst is being proposed at pay range ES ($45,396 -$64,212). This classification is needed due to the increasing technological needs of the Human Resources and Employee Development Department. Please see the attached classification description, Attachment 2. The Salary Schedule has been updated to reflect the proposed additional classifications and is attached for review and acceptance as Attachment 3. H:lwp.dtalagenda\FAHRIFAHR2lm2000 Agenda Reports\FAHR00.72.doc R.,.;s.,cj: 8/20/98 Page 1 PROJECT/CONTRACT COST SUMMARY NIA BUDGET IMPACT ~ This item has been budgeted. D This item has been budgeted, but there are insufficient funds. 0 This item has not been budgeted. 0 Not applicable (information item) ADDITIONAL INFORMATION NIA ALTERNATIVES NIA CEQA FINDINGS N/A AITACHMENTS 1. Communications Services Manager classification description. 2. Human Resources Information Systems (HRIS) Analyst classification description. 3. Human Resources Policy and Procedure C10.00, Exhibit A, Salary Schedule. H:\wp.dlalagenda\FAHRIFAHR20000000 Agenda Reporla\FAHR00.72.doc Revised: 8/20/98 Page2 " ATTACHMENT l ORANGE COUNTY SANITATION DISTRICT CLASSIFICATION DESCRIPTION Title: COMMUNICATIONS SERVICES MANAGER DISTINGUISHING CHARACTERISTICS No. 0501 Date: 9127100 Revised: Approved: Page: 1of1 Under administrative direction, the incumbent is responsible for planning, developing and coordinating District-wide communications policies and programs to maintain and improve the District's relationship with the Board of Directors, the general public and the media. EXAMPLE OF DUTIES Manages professional and support staff involved in the communication activities, including public relations and graphic services. Plans, schedules and reviews work of staff; establishes performance criteria and production requirements; and hires, trains, evaluates and disciplines staff. Develops. implements and manages the development of short and long range Communication plans and manages the division budget. Manages the internal communication efforts between management and staff including the publishing of newsletters and special publications, and the development of special events and activities. Oversees the development and production of graphic-related materials including written, video and computer- supported graphics. Manages the external communications programs including community outreach regarding the District's capital improvement program, water recl.amation, water conservation and environmental stewardship MINIMUM QUALIFICATIONS Bachelors Degree in Communications or a related field. Eight years of related experience, including two years in supervision. Advanced knowledge of public relations and communications principles and techniques; including materials production. Creative thinking, proactive problem solving and strong communication skills. LICENSE OR CERTIFICATE REQUIRED None. H:\wp.dta\hr\510\Tomkol\Recrulting\CommServMgr.doc ORANGE COUNTY SANITATION DISTRICT CLASSIFICATION DESCRIPTION Title: HUMAN RESOURCES INFORMATION SYSTEMS ANALYST DISTINGUISH ING CHARACTERISTICS No. 8112 Date: 9127100 Revised: Approved: Page: 1 of 2 Under general supervision, serves as the primary information systems (HRIS) support person for the Human Resources & Employee Development Department (HR/ED). Administers and coordinates all aspects of the department's HRIS, including liaison duties with the Information Technology (IT) Department. In addition to HRIS administration and database support, performs duties related to the development and administration of human resources programs, including training and development, employment, benefits administration and compensation. EXAMPLE OF DUTIES Recommends specifications'and develops and implements HRIS, system reporting features, and policies and procedures for internal use. In partnership with IT, manages relationships with software and hardware vendors and ensures the development of proper training and documentation for system use and maintenance. Consults with all levels of management in the development of organization-wide use of human resources related systems (e.g., Performance-Now). Establishes data tables, structures, files, interface requirements and data integrity protocols for ongoing administration. Analyzes, develops, tests and implements business applications involving HR data by establishing system design, file requirements and processing specifications for reports, screens and data manipulation routines that are modified or added to HRIS. Responsible for the data integrity and efficient operation of the HRIS and Training software databases. Implements and coordinates appropriate data control, review and audit procedures in training software. Exports and reformats HR/training data for use on other computer systems as needed. Performs analysis, design, and testing of programs. Works with HRIS vendor and IT as a liaison on technical projects, problems and issues. Coordinates and prioritizes ongoing development and implementation of database/software features and appropriate software conversions, when necessary. Generates and reviews ad hoc reports for all areas of the organization upon request. Responsible for development, maintenance and support of the HR/ED intranetlinternet Web sites. "MOO Attachment 3 111:11/2000 Orange County Sanitation District Classlfications By Employee Group Executive Management Pay Range Minimum Maximum Classifications FLSA Status E27 $158,000 $158,000 General Manager Exempt E20 $95,676 $148,836 Assistant General Manager Exempt E19 $87,180 $139,980 Director of Engineering Exempt E19 $87,180 $139,980 Director of Operations & Maintenance Exempt E19 $87,180 $139,980 Director of General Services Administration Exempt E19 $87,180 $139,980 Director of Technical Services Exempt E18 $85,992 $139,464 Director of Finance Exempt E18 $85,992 $139,464 Director of Information Technology Exempt E17 $75,876 $119,784 Director of Human Resources Exempt ~ ~ ~ Cl~ec:lg~ gi Cgs;1~1.1RIGaliQRi ~ E13 S67,f28 $94,932 Communications Se~ces Manager Exempt AMOO Attachment 3 0&!3112000 Orange County Sanitation District Classifications By Employee Group Professional Pay Range Minimum Maximum Classifications FLSA Status E14 $70,380 $99,600 Chief Scientist Exempt E13 $67,128 $94,932 Assistant to the General Manager Exempt E13 $67,128 $94,932 Senior Engineer Exempt E12 $63,948 $90,468 Senior Scientist Exempt E12 $63,948 $90,468 Senior Regulatory Specialist Exempt E11 $60,828 $86,064 Engineer Exempt E11 $60,828 $86,064 IT Strategic Implementation leader Exempt E10 $57,852 $81,948 Secretary to the Board of Directors E,xempt E9 $55,212 $78,156 Principal Administrative Analyst Exempt E9 $55,212 $78,156 Principal Engineering Associate Exempt E9 $55,21.2 $78,156 Project Specialist Exempt E9 $55,212 $78,156 Regulatory Specialist Exempt E9 $55,212 $78,156 Scientist Exempt E9 $55,212 $78,156 Principal Accountant Exempt E9 $55,212 $78,156 Principal Financial Analyst Exempt E9 $55,212 $78,156 Senior Human Resources Analyst Exempt ES $52,500 $74,292 Associate Engineer Ill Exempt E8 $52,500 $74,292 Principal Environmental Specialist Exempt ES $52,.500 $74,292 Safety & Emergency Response Specialist Exempt E7 $50,064 $70,848 Programmer Analyst Exempt E7 S.50,064 $70,848 Computer Hardware Specialist Exempt E7 $50,064 $70,848 Telecommunications Specialist Exempt E7 $50,064 $70,848 Maintenance Planner Exempt E7 $50,064 $70,848 Contracts Administrator Exempt ES $47,640 $67,392 Principal Laboratory & Research Analyst Exempt E6 $47,640 $67,392 Senior Administrative Analyst Exempt ES $45,396 $64,212 Associate Engineer II Exempt ES $45,396 $64,212 Senior Accountant Eicempt ES $45,396 $64,212 Senior Financial Analyst Exempt E5 $45,396 $64,212 Human Resources Analyst Exempt ES $45.396 $64,212 Senior Environmental Specialisl Exempt . -· -..... ·ES. .'$45.396 $64,212 HRIS AAafY$!_ Exempt E4 $43,248 $61,236 Safety Representative Exempt E4 $43,248 $61,236 Programmer Exempt E4 $43,248 $61,236 Senior Buyer Exempt E3 $41,136 $58,260 Associate Engineer I Exempt E2 $39,252 $55,488 Contracts Specialfst Exempt E1 $37,284 $52.,908 Accountant Exempt E1 $37.284 $52,908 Buyer Exempt E1 $37,284 $52,908 Financial Analyst Exempt E1 $37,284 $52,908 Management Analyst Exempt FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Gary G. Streed, Director of Finance SUBJECT: 2000-01 SEWER SERVICE USER FEES GENERAL MANAGER'S RECOMMENDATION Meeting Date To Bd. Of Dir. 09/13/00 09/27/00 It.em Number It.em Number FAHR00-73 Adopt Resolution No. OCSDOO-XX, Establishing Sewer Service User Fees for 2000-01 . SUMMARY In 1996 the Board adopted a five-year schedule of annual sewer service user fees, effective from 1997 -98 through 2001-02. In 1998, after the Rate Advisory Committee process, the Board adopted a revised user fee rate structure. As a result of this structure change, which better correlated non- residential fees with use, the base rates implemented for 1998-99 in five of the service areas were lower than those originally adopted. Reducing the base single-family residential rate reduces all other rates because they are adopted as a percentage of the base rate. Last year, the Board again adopted fees in those five areas that were somewhat below those originally authorized. This was possible because of the structure change, increased property tax allocations, reduced operating budgets, and a revised borrowing plan. In April of 2000, the Board of Directors adopted a consolidated rate structure for all Revenue Areas except Revenue Area 7 and 14. Revenue Area 14 costs are funded solely from the Irvine Ranch Water District since the Orange County Sanitation District receives no property tax or user fees directly from the property owners within Revenue Area 14. Revenue Area 7 is uniquely responsible for approximately 200 miles of local sewers that are maintained by the District. In moving towards a one rate structure for the 2000-01 budget, the Board of Directors approved the lowest rate structure of any of the seven revenue areas scheduled to be consolidated in accordance with the previously adopted rate schedule for 2000-01 . H:\wp.dtalagenda\FAHRIFAHR20002000 Agenda RepcxtslFAHR00.73.doc R9¥ised: 8l20l98 Page 1 The proposed rates and the already adopted rates are shown in the following table: Single Family Residential Rates Revenue 1999-2000 2000-01 2000-01 Area Current Rate Adopted Rate Proposed Rate 1 110.04 $120.77 $78.00 2 77.00 80.00 78.00 3 77.00 78.00 78.00 5 96.75 96.75 78.00 6 82.00 84.00 78.00 7 66.00 73.00 73.00 11 90.00 101 .25 78.00 13 100.00 100.00 78.00 14 All Revenue Area 14 Costs are Paid Directly by IRWD Multi-Family Residential Rates Revenue 1999-2000 2000-01 2000-01 Area Current Rate Adopted Rate Proposed Rate 1 $77.03 $84.54 54.60 2 53.90 56.00 54.60 3 53.90 54.60 54.60 5 67.73 67.73 54.60 6 57.40 58.80 54.60 7 46.20 51.10 51.10 11 63.00 70.88 54.60 13 70.00 70.00 54.60 PROJECT/CONTRACT COST SUMMARY NIA BUDGET IMPACT [81 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) CEQA FINDINGS N/A ATTACHMENTS None H:\wp.dta'-!!enda\FAHRIFAH~ Agenda RoponslFAHR00.73.doc Revised: 8/20/98 Page 2 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Gary Streed, Director of Finance SUBJECT: CHANGES AT THE DISTRICT SINCE 1985-86 GENERAL MANAGER'S RECOMMENDATION Meeting Date To Bd. of Dir. 09/13/2000 Item Number This is an information-only item. The General Manager recommends the report be received and filed. SUMMARY During the budget development process the FAHR Committee noted that the budgeted cost to treat and dispose of one million gallons had increased from $305/mg in 1985-86 to $514/mg in 2000-01. These years were compared because the average daily flow was approximately the same. The increase in cost per million gallons prompted the Committee to ask, "What is different?" The District has grown from an industry-leading sewage collection, treatment and disposal agency to a world class regional environmental agency concerned with air quality, urban runoff, watershed management, water reclamation, and legislative advocacy as well as sewage collection, treatment and disposal. The agency is recognized as a leader in every endeavor; staff is regularly requested to make presentations at local, state, national and even international gatherings of experts. This is truly an agency that has changed with the times, and for the times. It is very much different from our predecessor in 1985-86. PROJECT/CONTRACT COST SUMMARY NIA 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. ~ Not applicable (information item) ADDITIONAL INFORMATION Please see the attached staff report. C:\WINN'\'\Prof11es\crane\Personal\FAHRAR091300CHGSATDIST1965--.doc Revised: 8/20198 Page 1 ALTERNATIVES NIA CEQA FINDINGS N/A ATTACHMENTS 1. Staff Report: What is different" A comparison of wastewater treatment costs in 1985-85 and 2000-01-two years with similar flows C:\WINNT\Proftles\crane\Personsl\FAHRAR091300CHGSATDIST1985--.doc Revised: 6/20/98 Page 2 WHAT IS DIFFERENT? A COMPARISON OF WASTEWATER TREATMENT COSTS IN 1985-86 AND 2000-01 TWO YEARS WITH SIMILAR DAILY FLOWS PRESENTED TO THE FAHR COMMITTEE 5EPTEMBER13,2000 BY STAFF OF THE ORANGE COUNTY SANITATION DISTRICT September 13, 2000 Background What is Different A Comparison of Wastewater Treatment Costs In 1985-86 and 2000-01 Two Years with Similar Daily Flows In 1985-86, the budgeted Joint Operating cost was $305 per million gallons (mg). That cost for 2000-01 is budgeted to be $514 per million gallons, although the daily influent flow is approximately the same. This apparent cost increase has prompted the question, "What is different?" The answer is: "A lot." Let us start by broadening the question and taking a look at the total budgets. When all the uses of funds are considered, these show that although there is a 69% increase in the O&M cost per mg, there is only a 36% increase in overall costs. 1985-86 2000-01 Budget Per MG Budget Per MG Treatment Plant O&M (JO) $26.8 $305 $46.0 $514 Collection System O&M 3.6 41 9.5 106 Treatment Plant CIP 31 .1 354 65.9 737 Collection System CIP 66.0 751 17.6 197 Debt Service il 20 40.7 455 Total $129.3 $1 471 $179.7 $2.009 For the most part, these changes can be described as changes in the facilities, the physical environment; changes in the rules, the regulatory environment; changes in the value of money, inflation; and new programs or initiatives, the mission . Physical Environment Between 1985-86 and 2000-01 , the District tripled the value of our collection and treatment facilities by constructing $650 million of treatment plant facilities, including two complete power plants, and $150 million of collection system assets, including pump stations. All of these facilities, many of them highly sophisticated, require people and materiat to keep them functioning properly. Comparison of Wastewater Treatment Costs Page2 September 13, 2000 Major treatment plant facilities include: • Physical/chemical treatment facilities at both plants • Additionar dewatering belt filter presses • Domes covering all facilities where influent is exposed to air • Odor control scrubbers at both plants to meet AQMD regulations • Ocean Outfall Booster Station (OOBS) • Headworks No. 2 at Plant 1 (240 mgd) • Additional 49 million gallons per day secondary treatment at both plants • Waste Hauler Disposal Station • Additional 60 mg primary treatment at Plant 1 • New digester gas compressors at both plants • Primary digesters 11-16 at Plant 1 • Operations Building & Maintenance Office at Plant 2 • Control Center at Plant 1 • Central Generation facilities at both plants • Two new boilers at Plant 2 • One new boiler at Plant 1 • Replacement of internal combustion engines with electronic motors • Automated controls for OOBS and Headworks • Supervisory Control and Data Acquisition (SCADA) systems at Plants 1 and 2 and pump stations • Significant seismic protection retrofits at both plants • Installed computer networks at both treatment plants Two major pump stations were added and a number of smaller ones were phased out. Overall, there has been a net reduction of 13 pump stations. The two large stations that were added are: • Slater Avenue Station in Huntington Beach • Main Street Station in Irvine Regulatory Environment Everything done at the District can be traced to a regulation. Although staff are dedicated environmental and fiscal stewards, the legislature and regulators actually control many of our choices. Many recent staff initiatives and efforts have been useful to prevent burdensome, unneeded regulations. When we can show we already meet the intent, the new regulations are not needed. A few examples may help to show how increasingly stringent and numerous regulations have combined to increase staffing levels and costs. Comparison of Wastewater Treatment Costs Page3 September 13, 2000 In 1984, under Federal Water Pollution Control Act, EPA required the District to implement the National Pretreatment Program in an effort to control and regulate the introduction of pollutants from non-domestic sources into the District's sewerage facilities. In 1989 and 1991, the District's Wastewater Discharge Regulations were revised to incorporate the newly added federal requirements with more stringent standards. The laboratory has been impacted by increased regulations from the California Department of Health Services and the California Occupational Safety and Health Administration (Cal-OSHA). In the early 1990s, DHS began regulating laboratories under the Environmental Laboratory Accreditation Program. Increased documentation, twice a year performance samples, and DHS audits were added as new operating requirements. Cal-OSHA added safety requirements under the Chemical Hygiene Program requirements. Combined, these two programs added about 2 FTEs As of June 30, 2000, under the District's pretreatment program, over 670 industrial users are being regulated, of which 450 are significant industrial users. Air Quality Management District (AQMD) issues permits to construct and permits to operate our facilities. We have 74 state and local permits to operate, to monitor, to report and to renew. There were no permits in 1985-86. The District operates under a wastewater discharge permit jointly issued by the U.S. Environmental Protection Agency and state Regional Water Quality Control Board. The permit contains site specific terms and conditions that allow the District to discharge less than full secondary-treated wastewater into the Pacific Ocean. Only a handful of POTWs in the United States have been able to obtain what are known as "301 (h) waivers" (named for the section of the Clean Water Act in which this provision is found) from the regulatory agencies. The District's success is attributed to its commitment to maintaining the integrity of its collection, treatment, and disposal infrastructure through sound strategic and financial planning, outstanding compliance with its permit requirements, an award-winning industrial waste pretreatment (source control) program, and maintenance of a healthy marine environment around its outfall. Our discharge permit requires the District to undertake an extensive ocean and surfzone monitoring program to ensure our treated wastewater discharge complies with state and federal water quality standards. Over the years, the monitoring program has evolved from a routine compliance driven suite of tests to the current program which integrates compliance monitoring, regional water quality studies, and special studies designed to better understand the effects of our discharge on the environment. The program is significantly more complex Comparison of Wastewater Treatment Costs Page4 September 13, 2000 and requires thousands of hours of staff time and tens of thousands of laboratory analyses of water and sediment samples, bottom dwelling animals1 and fish. The District's biosolids management program has evolved from a "waste disposal" program to one that is now focused on beneficial reuse of the material on agricultural lands. The emergence of stringent local, state, and federal rules and regulations requires the District to meet high standards of quality and management of the material from "cradle to grave." With the District's recent purchase of property in the Central Valley and likelihood of additional land purchases in the future, District staff now finds itself in the role of a property manager with responsibility for overseeing the application of biosolids to 1800 acres of farmland and the production of crops on this land. In the past 18 months the District has moved aggressively to assist its member agencies in managing dry weather urban runoff flows that are suspected of causing beach closures along Orange County's coastline. Following last summer's 2-month long closure of portions of Huntington State and city beaches, where the District was the lead agency investigating the sources of the contamination, the District approved the acceptance of dry weather flows into its sewer system. A multidisciplinary team of District staff from the source control division, laboratory, operations, and finance department have worked closely with the board of directors over the past 6 months to establish what is one of the first POTW urban runoff policy and financing programs in the state. Inflation It has been 15 years since the average daily flow was approximately the same as that projected for 2000-01. The costs of many things have changed over this period. One of the most significant impacts on costs is inflation. There are several ways to measure inflation and none seem to be universally accepted. In order to put inflation into perspective, consider the following. In 1986, Ford Motor Company introduced the then "radical" Taurus. This car was the 1986 Motor Trend car of the year and was an "every man" type of car. Base MSRP on the top of the line model was $13,777. Today the base price on the top of the line Taurus is $21,535. All things being equal, this is a 56% price increase over the 15-year period, and the car is even smaller! We generally accept the changes in the Consumer Price Index as a reliable and accurate method of explaining the effects of inflation. The Bureau of Labor Statistics says this about the CPI: "The "best" measure of inflation for a given application depends on the intended use of the data. The CPI is generally the best measure for Comparison of Wastewater Treatment Costs Page 5 September 13, 2000 adjusting payments to consumers when the intent is to allow them to purchase, at today's prices, the same market basket of consumer goods and services that they could purchase in an earlier reference period. It is also the best measure to use to translate retail sales and hourly or weekly earnings into real or inflation-free dollars." During this 15-year period, the CPI for All Urban Consumers: LA-Riverside-QC increased from 111.9 to 170.6, with the period 1982-1 984 as the base of 100. This is an increase of 52.4%, slightly less than the increase in the price of a Taurus. If inflation, as measured by the CPI, were the only factor in changing costs at the District, this would be a much simpler report to write and to understand. The gross Joint Operating costs in 1985-86, before revenues and charge-outs, were budgeted to be $30.4 million. Applying the 52.4% CPI increase results in a "current dollar budget" of $46.3 million. The adopted budget for 2000-01 is · actually $70.4 million. There are other than inflation issues to be discussed, but inflation could be said to account for 40% of the budgetary increase. Salaries, Wages· and Benefits In this agency, as in many businesses, it is said that people are our most important resource. When this is true, then it is logical that people-related costs would be a significant share of the total. In fact, this is the case. The following table shows that salaries, wages and benefits have increased in amount and increased as a share of total expenses over this period. Salaries & Wages Benefits 1985-86 Inflated $16.3 4.4 $20.7 25.6 % 35% 10% 45% 55% 2000-01 Budget % $34.8 50% 6.4 9% $41 .2 59% 29.1 41% Subtotal Materials & Supplies Total $46.3 100% $70.3 100% Salaries and wages have increased from 35% to 50% of gross JO expenses while benefits have remained relatively constant as a percentage, but have increased in absolute amount as salaries and wages have increased. One reason for an increase in salaries and wages is a change in the mixture of employee categories, titles and types of work, to a more specialized and certified work force. As reviewed earlier, there have been significant increases in the plant facilities, additional automation, and changes in the regulatory environment. To respond to these changes and to stay in the forefront of our "industry," the District has reorganized for the information age, for environmental advocacy and Comparison of Wastewater Treatment Costs Page 6 September 13, 2000 stewardship, and to reflect current management best practices. One result of all of this can be seen in the following table: Authorized Staffing b~ TyQe of EmQlo~ee Categor~ 1985-86 2000-01 Increase or Decrease Positions %to Total FTEs %to Total Number % Chan9e Department Head and Managers 19 4.7% 30 5.9% 11 Supervisors and Professionals 61 15.2% 149 29.2% 88 Administrative & Clerical 39 9.7% 62 12.2% 23 Operations & Maintenance 227 56.6% 197 38.6% (30) Technical Services 33 8.2% 40 7.8% 7 Engineering 22 5.5% 32 6.3% 10 401 100.0% 510 100.0% 109 This table shows that although the absolute number of Operations and Maintenance staff, as well as their percent to the total staffing level has decreased from 56.6% to 38.6%, this reduction has been more than made up for by increases in other categories. The management changes required to "flatten the organization," the concentration on computerization, the new regulations, the legislature, and industry leadership, have combined to increase the management and professional ranks. New departments and divisions have been formed to concentrate our own resources in new, more appropriate areas to meet regulations and the needs of our member agencies. For example, the Technical Services Department was formed in part from existing Laboratory and Source Control Divisions, which were in the Operations Department in 1985-86. Today the Environmental Compliance Division and the Safety and Emergency Response Divisions have been added to the Technical Services Department over the intervening years to emphasize these highly regulated functions as well. Similarly, the Information Technology Division has been formed. In 1985-86 there were a few computers in the Laboratory and Source Control Divisions. In fact, during the meet-and-confer process, the Personnel Administrator brought his personal Apple computer from home to crunch proposals in "Apple-Works." Today there are over 700 personal computers at the District, and IT is responsible for much more than just this, as we will describe later. Changes and reorganizations have been made in other departments as well. Most significantly the former Operations Department and former Maintenance Department have been combined. Today this department is responsible for the collection systems as well as treatment plant. A new division, Central Generation O&M, was created to be responsible for the new digester gas-fueled power plants that generate most of the electricity used in the treatment processes. 10.1% 80.7% 21 .1% (27.5)% 6.4% 9.2% 100.0% Comparison of Wastewater Treatment Costs Page 7 September 13, 2000 While this small division has added staff and salary-related costs, purchased power costs have decreased nearly $6 million on an inflated basis. The following table summarizes the staffing changes by department. (This information is shown by division and department as Attachment 2.) Administration Oper & Mtce Tech Services Engineering Information Tech Staffing by Department 1985-86* 2000-01 Auth Pers o/o to Total Auth FTE % to Total 44.00 11 .0% 58. 75 11 .5% 263.00 65.6% 250.50 49.1 % 60.00 15.0% 94.50 18.5% 34.00 8.5% 73.25 14.4% 33.00 6.5% 401 .00 100.0% 510.00 100.00% .. Staffing reallocated within Departments to reflect 2000-01 organization. Information Technology Increase or Decrease Number % Chan e 14.75 33.5% (13 .50) (4.8}% 34.50 57 .50% 39.25 115.40% 33.00 no base 109.00 27.24% In the previous section of this report, the Information Technology Department was identified as an example of an organizational change. Understanding this example is crucial to gaining a clear understanding of, and appreciation for, the types of changes that have been made that resulted in cost increases over the past 15 years. This department represents 33 of the additional 109 employees, and $5 million of the additional $24 million of gross JO expenses. Much, if not all, of the work that IT supports was not and could not have been performed in 1985-86. We believe that the costs to perform these additional functions using 1985-86 technology would far exceed the budgeted costs. Following is a brief overview of the more significant process, operational and administrative improvements made possibfe by the Information Technology Department. • There was no IT Department in 1986 and few, if any, personal computers were in use. Two staff in Operations were responsible for an early process monitoring computer system at Plant 2. Today IT supports over 700 PC's (desktops and laptops) and over 40 network servers. • Telecommunication devices were limited to a few single-channel radios and a few radio pagers in 1986. Today IT supports a multi-million dollar telecommunications infrastructure providing District staff at both plants and in the field with instantaneous and redundant forms of communications. • IT now maintains a completely integrated fire and security system, whioh includes remotely controlled card key access and closed-circuit TV. • Today IT provides Internet/Intranet site development and support. Comparison of Wastewater Treatment Costs Page 8 September 13, 2000 • Today IT supports the Financial Information System and District-wide e-mail and calendaring. In addition, IT supports over 150 other software applications. • Several years ago there was a single Source Control Oracle database running on a dual 486 PC. Today all of the following run in Oracle: • Labware LIMS, RJN Casswork CMMS, Training Server, Magic Help Desk, LI MS to Source Control custom interface, Permit User Reconciliation, Supplemental Capital Facility Connection Charges (SCFCC), Asset Management and Wastewater Treatment data warehouse, Automated MSO, System Emissions Modeling Analysis (SEMA), Parametric Emissions Modeling System (PEMS), EPA's Storet, J-42 lntegraph repository, O&M Electronic Document Management System (EDMS) Library, J-25-1 Facility Atlas and Engineering Electronic Document Management System (EDMS), Computerized Board Agenda System (CBAS). • Today Laboratory analysis results are electronically reported to Plant Operations. • There was a rudimentary SCADA (Supervisory Control and Data Acquisition) system for monitoring at Plant 2 in 1986. We now have three SCADA systems (Plant 1, Plant 2, and Pump Stations) communicating with 70 networked programmable logic controllers that monitor and control some unit processes. • Now there are 5,200 process control outputs, while there were none in 1986. • All systems and pump stations were controlled at the unit process in 1986, and there was some non-central monitoring through relay data. We now have centralized monitoring controls, alarm handling, and data collection. • We now have process standards to create and maintain uniform control philosophy, and uniform software and hardware "look and feel" for all plant monitoring and control applications. • All process and regulatory data was collected manually via staff rounds and chart recorders. All reports were done manually. Now most required inputs are remotely monitored and the data is sent directly to reporting databases automatically. IT now manages 22,000 process data input points. • Today IT supports Engineering and Construction Management Divisions with the planning, design and construction, testing and O&M turnover of integrated standardized process control systems. Technical Services The Technical Services Department today includes five divisions: Administrative, Environmental Compliance Monitoring, Environmental Sciences Labs, Source Control and Safety & Emergency Response. Only two of these divisions existed Comparison of Wastewater Treatment Costs Page 9 September 13, 2000 in 1986. Administration was a part of Operations, while safety needs were covered by one person in the Personnel Office. The increased demands of, and emphasis on, technical and regulatory compliance, and the changing environmental requirements have combined to require significant growth in this area. The Technical Services Department represents 34.5 of the additional 109 employees and $3 million of the additional $24 million of gross JO expenses. Some of the changes that led to the formation of and have significantly affected the Environmental Compliance Division are: • Additional requirements to the mandated National Pretreatment Program initiated in 1984. • Additional requirements for air-related issues including scrubbing, quality measurements, regulatory/legislative review, modeling, etc. • Environmental monitoring in general, including additional permit requirements (Ocean Monitoring Program, insourcing, reporting), more sophisticated - analyses, increased scrutiny by regulators and response, outreach efforts to the SurfRiders, CoastKeepers, Trails4All, SPON, and other environmental organizations. • Urban Runoff initiatives, research city/county involvement and outreach • Increased Legislative/Regulatory review and reporting to the Board • Increased administrative duties including budgets, staffing plans, goals and objectives, Directors' Committee involvement, etc. • Strategic Planning, GWRS, SARWG, SARI line relocation, and community outreach. • Biosolids Regulatory initiatives, increased inspections, contractor oversight, efforts to change the operational process, etc. In 1985, the District was granted our first National Pollutant Discharge Elimination System (NPDES) permit. This permit imposed certain effluent discharge quality requirements and a sophisticated and extensive ocean monitoring program. This program was eompletely staffed by outside independent contractors for most of the past 15 years. During the last three years, staff has been able to demonstrate overall cost reductions in this program by phasing portions of it in-house. This is a case of staffing increases while costs are decreasing and the usefulness of the product is increasing. In 1986, all of the Districfs biosolids were disposed of in local landfills by District staff using District trucks and trailers. When the Coyote Canyon landfill was closed, and in accordance with the 1989 Master Plan recommendation, the District implemented a 100% beneficial reuse policy for biosolids. No facility or site for beneficial reuse processing exists in Orange County. Out-of-County options have become very staff intensive to monitor and to maintain. Comparison of Wastewater Treatment Costs Page 10 September 13, 2000 In 1985, many of the analyses for organic chemistry (PCBs) were performed by outside labs. All of that work has been insourced. Also, the detection limits in our NPDES permit have been consistently more stringent over the years. That has been driven by improved instrumentation and methods of analysis. The areas primarily affected are metals and organics analysis. The FTE increase over the years to accommodate this change is between three to five. In the early 1990s, the Department of Health Services (OHS) began the Environmental Laboratory Accreditation Program. This required an expanded quality assurance group of approximately three FTEs, and a greater attention to QA within the lab. Because of efficiencies gained by better instrumentation and the Laboratory Information Management System (LIMS), the lab has been able to manage all of this increased workload while reducing staffing from 35 to 32 FTE. Because of efficiencies gained by better instrumentation and the LIMS, the lab has been able to manage all of this increased workload while reducing staffing from 35 to 32 FTEs. The Source Control program has been substantially augmented since 1985. Currently, about 20% of the total testing load in the Laboratory is from Source Control samples. Most of these analyses are with complex, dirty matrices, and are for constituents that are difficult to analyze, requiring additional staff and instruments. The Safety Division has also had dramatic changes in the recent past. In 1986, the Safety Division staff was 1 FTE in the "Personnel" group. In 2001, there are 7.5 FTEs authorized as a division in the Technical Services Department. In 1993, changes in CalOSHA's confined space requirements necessitated more involvement by District staff with confined space issues. This included all aspects of confined space entries by both District and contractor staff. The Safety Division has been actively involved with the Engineering Department with the design and construction of capital improvement projects to ensure compliance with the 1993 CalOSHA requirements. This involvement also carries over to Operations and Maintenance. In addition, in 1994 the District Management decided to change its safety philosophy to a more proactive stance regarding safety issues at the District. The results were an increase in staff, a safer work environment, improved compliance with the CalOSHA regulations, and a reduction in accidents and claims. Comparison of Wastewater Treatment Costs Page 11 September 13, 2000 Engineering The Engineering Department has experienced the largest increases in staffing and gross costs over the past 15 years, and represents 39.25 of the 109 additional staff and $4.6 million of the additional $24 million of gross JO expenditures. Two things about this are important: 1) nearly all of the efforts of this department are now devoted to the Capital Improvement Program (CIP), and do not impact the JO cost per million gallons and; 2) the Board of Directors implemented a new staffing policy for the CIP. Ther.e are many factors that contributed to the increase in Engineering Department staff requirements from 1986 to 2001. We will concentrate on staffing increases as the Department's net dollar charges to O&M have actually decreased over this period. In 1985, the Engineering Department had just started a transition from reliance on Carollo Engineers for all major CIP design work to being fully open to other consultants competing for the work. Carollo Engineers had worked with the O&M Department and Engineering Department Heads much like an extended staff to provide all necessary studies and design. Consultants now are much more competitive on their proposals for work. This change increased the staff effort required for CIP management. • Carollo gave us consistent quality and uniform designs with very simple scopes of work, using basically the same design team for all projects. The Engineering and O&M staff also worked with Carollo as a team throughout the design and construction processes. • s·copes of work have become more detailed and definitive in order to get consistent proposals and comparable quality from different consultants. As our facilities get older, more rehabilitation projects are required. Rehabilitation projects account for 40% of our 20-year CIP. Rehabilitation projects require more in-depth knowledge and understanding of our facilities, and more coordination with our consultants and contractors and input from staff during design and construction. Projects are being planned, designed, and constructed with a greater involvement of the internal customers, the Operations & Maintenance Department, to enhance quality of the finished product and to assure that the customer's needs are being met. Comparison of Wastewater Treatment Costs Page 12 September 13, 2000 In the past, small projects were either delayed or put into larger projects, taking longer to implement. Small projects are currently being handled in a more effective manner. A dedicated Facilities Engineering Group is overseeing design and construction of small projects. The Engineering Department is involved in many new initiatives that the District has taken on, such as the Groundwater Replenishment System, Cooperative Projects Program, Water Conservation, and Urban Runoff Control. All projects are being designed and constructed with a higher level of automation, requiring specialized engineering and construction inspection expertise and knowledge. There has been a significant increase in projects related to the treatment facilities' electrical distribution system, due to aging facilities and less than optimum coordination between past projects. Comprehensive electrical studies are underway that will ultimately lead to fixing problems and code violations and to improve operational reliability. An electrical Master Plan will also assure future projects are well coordinated and efficiently designed and constructed. The annual CIP Budget includes very detailed project descriptions, justifications, and budget information to provide for better understanding of the projects, as well as better tracking of budget authorization and compliance. In 1985 and for several years thereafter, the Engineering Department performed all permitting efforts for new projects. Operational permitting is now done in the Environmental Compliance Division with data and support provided by the Engineering Department. The number of major projects has increased to serve the 1984 and 1989 Master Plan and 1999 Strategic Plan requirements. Since 1995, new standing Board committees such as the PDC require more support and more detailed agenda reports than the previous Board structure. Public outreach has increased in order to communicate District responsibilities and construction plans to the affected community. About 1987, a business decision was made to increase oversight of Engineering Department projects and personnel by adding two Division Managers and several Supervisors, which increased staffing levels. Comparison of Wastewater Treatment Costs Page 13 September 13, 2000 There were seven outside "contract" project managers in the Construction Division, which are not shown in the FTE count in 1985-86. In 1996, these part- time inspectors and contract project managers were converted to full-time regular District employees. By contrast, today there are nine outside "contract" design engineers in Planning & Design that are not counted in this year's authorization. In 1996, DIG Alert, the underground facilities notification service, required less than 0.5 FTE. That effort now requires about 1.5 FTEs due to increased DIG Alert traffic. Additional staffing has been added to handle the increasing use of instrumentation and control technology required by the changing needs of the District in response to a Board decision to automate the plants for efficiency to the greatest extent possible. Administration For this report the functions of the General Manager's Office, Communications, Human Resources, and Finance Department have been combined and termed "Administration." (Of course there is an administrative function in each of the other Departments previously reviewed.) This consolidated "Administration Department" represents 14. 75 of the 109 additional employees and $4. 7 million of the additional $24 million of gross JO expenses. Because the individual bases for change in these areas are relatively small, the absolute increases result in fairly high percentage changes. The changes in staffing and in gross JO costs are presented together in the following table: 2000-01 Increase From 1985-86 2000-01 FTE CPI Budget Auth Pers CPI Adj Budget Auth FTE JO Budget Iner (Deer) 1985-86 General Manager 4.00 $ 484,815 3.00 $1,767,450 (1.00) $1 ,282,635 Communications 8.00 658,617 9.00 902,700 1.00 244,083 Human Resources 5.00 412,093 10.25 1,495,580 5.25 1,083,487 Finance 27.00 2,123,276 36.50 4,261,000 9.50 2,137,724 Total Administration 44.00 $3,678,801 58.75 $8,426,730 14.75 $4.747,929 The General Manager's budget has been significantly affected by four policy changes. All of the JO legal expenses and agency memberships are now budgeted in this Department; a combined increase of $457,000. An amount has been budgeted for contingency items that were historically included in the individual division budgets. While this practice increases the General Manager's budget, it decreases the overall budget. This amount for 2000-01 is $340,000 or 1 % of the materials and supplies budget as a contingency item. Finally, $220,000 has been budgeted for reappropriations to account for materials and Comparison of Wastewater Treatment Costs Page 14 September 13, 2000 services ordered in 1999-00, but not received in time to accrue the expense. In the past, these expenses were charged against the current budget. During the year, the last two budget amounts are transferred to the individual divisions by the General Manager as needed. These four items account for nearly 80% of the budget change from 1985-86 in this office. The Human Resources Department has matured from a small division in 1985-86. As a part of this process it has absorbed and increased the effort and responsibility for the District's employee development or training efforts. Four of the 5.25 additional FTEs in this department are dedicated full-time to employee development. fn 1985-86, there were two employees dedicated to training and they were assigned to the Operations Department. Today the staffing and the budget for management and technical training are consolidated in Human Resources. The outside training budget of $542,000 accounts for half of the increase from the 1985-86 budget after adjusting for inflation. More training is needed because of changes in regulations and legally mandated operational changes. The property, liability, earthquake, and boiler and machinery insurance program budget for 2000-01 is $1.2 million. In 1985-86, the District was self-insured for most insurance with a total budget of $291,000. This program is budgeted in the Finance Department. Other cost increases in this department are a result of program changes. Today the sewer service user fee program applies to approximately 919,000 equivalent dwelling units (EDUs) in the service area. In 1985-86, this number would have been approximately 157,000. This program generates approximately $68 million per year. Budgets, general ledgers and reports were prepared for 19 divisions in 1985-86; today there are 27 divisions, an increase of 42%. The 1985-86 budget contained less than 125 pages, while the current budget contains over 400. There are 190 pages in the CIP section alone of the current budget. In 1985-86, there was no District or Revenue Area 14, and IRWD was not a member agency. In 1985-86, the Board Secretary conducted all bid openings; today Purchasing does this. Many more service contracts are bid and awarded today because of reduced O&M staff. The maintenance crews have implemented a 10-hour day requiring additional Warehouse staff to meet the demands of a 50-hour week. Comparison of Wastewater Treatment Costs Page 15 September 13, 2000 Community involvement issues have become critical to agencies when planning, funding and constructing projects. Without community support, projects can be stalled and, as seen in San Diego with the reclamation project, halted entirely. Delays of projects cause not only lost time, but also the expiration of permits and contracts. Halting of projects can end up costing an organization millions of dollars on investments in research, planning and development. OCSD could be faced with this very issue regarding GWRS or biosolids management without strategic minded staff who can handle these issues. Not only Communications staff, but also Engineers, Source Control, and Laboratory Specialists now spend time explaining issues to the public in open forums, over the phone, and at special interest group meetings. Operations and Maintenance Organizationally speaking, this Department has probably seen the greatest change in the past 15 years. Most significantly, this was two departments in 1985-86. This is the department that is responsible for collecting, treating and disposing of wastewater and solids. They are responsible for keeping the system in compliance with water, solids and air quality regulations and working 24-hours a day, 7 days a week, 52 weeks a year. This is the group and the function that naturally comes to mind when questions related to the increased cost per million gallons are asked. This is the only department to show a net decrease in staffing and shows the lowest percentage increase in gross JO costs. The following table describes the staffing changes by division within this department. It shows a move of staffing away from the more routine "wrench" work and daily plant rounds to more sophisticated process analysis, computer- related controls and regulatory issues. For example, this Department now contracts for small sewer line cleaning. for janitorial services, and for most painting services. All of these functions were performed in-house in 1985-86. Contracting for these services has reduced staffing by 25.5 FTEs since 1995-96 when the process began. Comparison of Wastewater Treatment Costs Page 16 September 13, 2000 1985-86 2000-01 Increase or Decrease Auth Pers % to Total Auth FTE % to Total Number "/o Change Oper & Mtce Admin 1.00 0.2% 2.00 0.4% 1.00 O&M Process Support 5.00 1.2% 9.50 1.9% 4.50 Plant Operations 95.00 23.7% 71.50 14.0% (23.50) Air Quality, Research & Proj. 1.00 0.2% 10.50 2.1% 9.50 Plant Mtce 45.00 11.2% 29.50 5.8% (15.50) Collection Fae 21.00 5.2% 18.50 3.6% (2.50) Mechanical Mtce 58.00 14.5% 44.50 8.7% (13.50) Elec & Instr Mtce 37.00 9.2% 55.50 10.9% 18.50 Central Generation 9.0 1.8% 9.00 Total Oper & Mtce 263.00 65.6% 250.50 49.1% (12.50) Several programmatic changes have also affected this department and are seen in the line item expense budget. • In 1985-86, we budgeted $5.5 million for utilities. This has decreased to $3.1 million as a result of the Central Generation facilities despite an increase in natural gas costs. Utilities have decreased from 15.9% of the budget to only 4.5%. The 9 FTE Central Generation Division is responsible for operating these power plants along with 3 FTEs from the Mechanical and Operations Divisions. • Biosolids and screenings are no longer transported by truck to nearby Orange County landfills at an annual cost of $2.9 million adjusted for inflation. Today's beneficial reuse in distant counties accounts for nearly $5.5 million of gross JO expenses. • Chlorine was once stored and used on both treatment plants for odor control. Today no Chlorine is found at either plant, significantly reducing environmental and health risks. The change in combined chemical costs over the past 15 years, even with no benefit assigned to the reduced risk, but after adjusting for inflation, is a net cost reduction of $2.1 million per year. • Programs that have resulted in increased line item expense costs include outsourcing grounds-keeping, janitorial services, security services, and some specialized repair and maintenance. Before these services are obtained from the outside, a cost analysis is performed against the cost to provide the service by additional staff. 100.0% 90.0% (24.7%) 950.0% (34.4%) (11.9%) (23.3%) 50.0% no base (4.8%) Comparison of Wastewater Treatment Costs Page 17 September 13, 2000 • Treatment plant air quality permits, regulatory legislation review and compliance are now consolidated in Operations & Maintenance. An 0 Air Issues Special Projects Group" has been formed to address treatment plant odors and corrosion in the collection system and in the plants. This division accounts for an additional 9.5 FTEs and about 15% of the current O&M budget for staff, chemicals and energy. • There has been a significant increase in the number of facilities at the treatment plants since 1985-86. This increase, along with the electrical gear, emergency generation, central generation power plants, variable speed equipment, the new more complex SCADA automated monitoring and control, and the importance of electrical reliability has resulted in increases of instrumentation and electrical staff from 37 to 55.5 FTEs. This staffing increase matches the added facilities and the increased complexity of automated technology. • The O&M reinvention implementation plan (District Assessment and Reinvention Team, DART) that will create the future foundation for O&M by modernizing our business and work practices and developing the reinvention tool is requiring substantial O&M staffing resources. • There are 5 FTEs in O&M implementing the Computerized Maintenance Management System (CMMS) who are assisted by 7 FTEs implementing the Planning and Scheduling Program. These groups are responsible for managing over 20 service contracts for the O&M Department. The expanded Strategic Plan's Capital Improvement Program requires 13 FTEs from O&M to review plans and to manage facility shutdowns for various construction contracts • Automation of the Ocean Outfall Booster Station (OOBS), and the resultant unattended operations has reduced Plant Operations staffing by 15 FTEs. The net result of all of these programmatic and other changes in our O&M Conclusion Describing what has changed has been a big job, and it is an ongoing job. More has changed than has remained the same. We have added staff and deleted staff. We have added departments and divisions and we have deleted departments and divisions. We have added programs and initiatives and we have deleted programs and initiatives. In fact in some cases, we have added Comparison of Wastewater Treatment Costs Page 18 September 13, 2000 and deleted complete divisions' fine items expenses or programs between the end points in this report. We have grown from an industry-leading sewage collection, treatment and disposal agency, to a world class regional environmental agency concerned with air quality, urban runoff, watershed management, water reclamation, and legislative advocacy as well as sewage collection, treatment and disposal. The agency is recognized as a leader in every endeavor; staff is regularly requested to make presentations at local, state, national and even international gatherings of experts. This is truly an agency that has changed with the times, and for the times. It is very much different from our predecessor in 1985-86. Attachments Several schedules are attached to assist the reader who wishes to have more detail: 1. Joint Operating History -An annotated tine graph showing costs and flows since 1985-86 2. Authorized Staffing Levels -A table showing staffing changes for all Divisions and Departments 3. Gross Expenses by Division & Department -A table showing total costs before revenues and charge-outs to other funds 4. Line Item Expense Account Comparisons -A table showing changes by Expense Category 5. Line Item Expense Account Percent to Total Expenses -A table showing the change in the mix of expense types 6. 1985-86 Organization Chart 7. 2000-01 Organization Chart 8. Comparison of Fixed Assets -A table showing construction over the past 15 years was more than twice the cost of all of the assets at June 30, 1985 GGS:lc \ \radon\data 1 \wp.dta\fin\21 O\crane\FAHR\Fahr2000\Sept\WastwtrT reatmniCostsComp.doc Joint Operating History 800 700 600 500 400 '85-86 Cost per MG Adj for Inflation 300 200 100 AlTACHMENT 2 08/14/2000 11:43 AM Budget Comparisons Two Years With Similar Daily Flows 1985-86 vs. 2000-01 Authorized Staffing Levels 1985-86 2000-01 Increase or Decrease Auth Pers %to Total Auth FTE o/otoTotal Number %Change General Manager 4.00 1.0% 3.00 0.6% (1.00) (25.0%) Communications 8.00 2.0% 9.00 1.8% 1.00 12.5% Human Resources 5.00 1.2% 10.25 2.0% 5.25 105.0% Finance Admin 4.00 1.0% 4.00 0.8% 0.0% Accounting 12.00 3.0% 15.00 2.9% 3.00 25.0% Purcha§!r:\9 & Whse 11.00 2.7% ·1.7 .• ~o " 3 .4% :6.50 59.1°/o Total Administration 44.00 11 .0% 58.75 ·11 .5% 14.75 33.5% . Oper & Mtce Ad min 1.00 0.2% .2,09· 0.4% 1.00 100'.0% O&M Process Support 5.00 1.2% =·9:50 ., ... 1 ~9% 4.50 90.0% ·Plant; Operations,.'·· ; ' 1~.0% 95.00 23.7% 7-1.:SQ '(23.50) (24.7%) Piir d~a!lty 1.00 0.2%' 10,50 2.1% 9.50 950.0% Plant Mtce 45.00 11.2% 29.50 5.8% (15.50) (34.4%) Collection Fae 21 .00 5.2% 18.5-0 . 3.6% (2.50) (11 .9%) Mechanical Mtce 58.00 14.5% 44.50 8.7% (13.50) (23.3%) Elect & Instr Mtce 37.00 9.2% 55.50 10.9% 18.50 50.0% Cogeneration 9.00 1.8% 9.00 no base Total Op er & Mtce 263.00 65.6% 250.50 49.1% (12.50) (4.8%) Dir of Tech Services 1.00 0.2% 2.00 0.4% 1.00 100.0% Environmental Comp 19.00 3.7% 19.00 no base Laboratories 35.00 8 7% 32.00 6.3% (3.00) (8.6%) Source Control 24.00 6.0% 34.00 6.7% 10.00 41 .7% Safety & Emergency 7.50 1.5% 7.50 no base Total Tech Services 60.00 15.0% 94.50 18.5% 34.50 57.5% Dir of Engineering 6 .00 1.5% 3.00 0.6% (3.00) (50.0%) Plan & Design Engr 15.00 3.7% 33.25 6.5% 18.25 121.7% Engineering & lnsp 13.00 3.2% 37.00 7.3% 24 .00 184.6% Total Engineering 34.00 8.5% 73.25 14.4% 39.25 115.4% Info Tech Admin 2.00 0.4% 2.00 no base IT Customer & Network 12.00 2.4% 12.00 no base IT Programming &DB 10.00 2.0% 10.00 no base Process Cntrl lnteg 9.00 1.8% 9.00 no base Total Information Tech 33.00 6.5% 33.00 no base 401.00 100.0% 510.00 100.0% 109.00 27.2% G:\excel.dta\fin\21 O\streed\comp with 1986 Staffing ATTACHMENT 3 08/14/2000 12:07 PM Budget Comparisons Two Years With Similar Daily Flows 1985-86 vs. 2000-01 Gross Expenses By Division 1985-86 2000-01 2000-01 VS. 1985-86 % Iner To JO Budget Adj for CPI % to Total JO Budget %to Total CPI Budget Budget CPI Budget General Manager 318,000 484,815 1.0% 1,767,450 2.5% 1,282,635 1,449,450 264.56% Communications 432,000 658,617 1.4% 902,700 1.3% 244,083 470,700 37.06% Human Resources 270,300 412,093 0.9% 1.495,580 2.1% 1,083.487 1,225,280 262.92% Finance Admin 454,700 693,224 1.5% 1,694,850 2.4% 1,001,626 1,240, 150 144.49% Accounting 489,000 745,517 1.6% 1,327,350 1.9% 581,83·3 838,350 78.04% Purchasing & Wh.s~ .. .. 449,000 §84,534 ~.5% 1 ,2~8.800 1.8% .SM.266 789,800 80.97% TotpJ Administration 2,41~.ooo 3,678,801 .Y-.9% 8,42~,730 12.0% 4,74?,929 6,013,7.~0 129.06% Oper & Mtce Admin 55,000 : '83,852 . 0.2% 424,500 0.6% 340,648 369,500 406.25% O&M .Process Support 225,000 343,029 '.Ot1% 1,080;100 1.5% 73J,071 8!i5-, 1 OQ no b.ase Plant Operations 12,818,800 19,543,229 42'.2% .. 15,917,500 22.6% (3,62'5,729) 3,098,7'00 (1 8:55%) Air Quality 47,800 72,875 0:2% 1,174,600 1.7% 1,101,725 1,12.6,'800 no base Plant Mtce 3,640,500 5,550,217 1.2'.0% 4,034,000 5.7% (1,516,217) 393,500 (27.32%) Collection FC\c 689,600 1,051,347 '2.3% . 1,470,950 2.1% 419,603 781 ,350 39.91% Mechanical Mtce 3,554,900 5,419,713 11.7% 5,224,000 7.4% (195,713) 1,669,100 (3.61%) Elect & Instr Mtce 1,884,400 2,872,910 6.2% 6,469,350 9.2% 3,596,440 4,584,950 125.18% Cogeneration 2,526,900 3.6% 2,526,900 2,526,900 no base Total Oper & Mtce 22,916,000 34,937,172 75.5% 38,321 ,900 54.4% 3,384,728 15,405,900 9.69%, Dir of Tech Services 55,000 83,852 665,600 0.9% 581,748 610,600 no base Environmental Comp 3,589,500 5.1% 3,589,500 3,589,500 no base Laboratories 2,762,300 4,211,335 9.1% 3,609,150 5.1% (602, 185) 846,850 (14.30%) Source Control 752,500 1,147,243 2.5% 2,849,250 4.0% 1,702,007 2,096,750 148.36% Safety & Emergency 985,150 1.4% 985,150 985,150 no base Total Tech Services 3,569,800 5,442,430 11.6% 11 ,698,650 16.6% 6,256,220 8,128,850 114.95% Dir of Engineering 189,400 288,755 0.6% 463,600 0.7% 174,845 274,200 60.55% Plan & Design Engr 635,400 968,715 2.1% 2,888,300 4.1% 1,919,585 2,252,900 198.16% Engineering & lnsp 635,400 968,715 2.1% 3,485,100 5.0% 2,516,385 2,849,700 259.77% Total Engineering 1,460,200 2,226,185 4.8% 6,837,000 9.7% 4,610,815 5,376,800 207.12% Info Tech Admin 1,022,300 1.5% 1,022,300 1,022,300 no base IT Customer & Network 1,934,600 2.7% 1,934,600 1,934,600 no base IT Programming &DB 1,133,000 1.6% 1, 133,000 1,133,000 no base Process Cntrf lnteg 1,023,070 1.5% 1,023,070 1,023,070 no base Total Information Tech 0 0 5,112,970 7.3% 5,112,970 5,112,970 no base 30,359,000 46,284,588 100.0% 70,397,250 100.0% 24.112,662 40,038,250 52.10% (3,584 ,000) (5,464,079) (24,397,250) (18,933,171) (20,813,250) 346.50% 26,775,000 40,820,509 46,000,000 5,179,491 5,179,491 12.69% G;\excel.dta\fin\21 O\streed\comp with 1986 Divisions-gross ATIACHMENT4 08/14/2000 Page 1of2 Budget Comparisons Two Years With Similar Daily Flows 1985-86 vs. 2000-01 Line ltem Account Comparisons 1985-86 Adj 2000-01 Increase % Iner 1985-86 for CPI chg 2000-01 1985-86 1985-86 1985-86 Budget 170.61111.9 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 663,00Q 1,010,794 3,614,500 2,951,500 2,603,706 257.59% 7 4Jnifomi Rental :. 45,000 68,606 69,200 24,200 594 0.87% 8 Total Benefits .. -~('899 ,000 4,419;744 6..:448,QOO 3,549,000 2,028,256 4589% g Total Salaries, Wages & Benefits 13;581,000 ·20,705,260 41 ,287,700 27,706,:700 . 20,582,440 99.41% 10 Gasoline, ~011 & Diesel 265,000 404;013 : 1.8.7,300 (77,700) (216,713) (53.64%) 11 Insurance 291,000 4~3.&.51 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 no base 17 Minor Furniture, Fixtures. etc 87,100 87,100 87,100 no 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 Toots 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% G:\excel dta\fin\21 O\streed\comp with 1986 11:55 AM ATTACHMENT 4 08/14/2000 Page 2 of2 Budget Comparisons Two Years With Similar Daily Flows 1985-86 vs. 2000-01 Line Item Account Comparisons 1985-86 Adj 2000-01 Increase % Iner 1985-86 for CPI chg 2000-01 1985-86 1985-86 1985-86 Budget 170.6/111.9 Budget Budget CPI Budg CPI Budg 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%) 45 Rents & Leases 46 Outside Equipmen!-Rent 65,000 99,097 14G,1·80 81 , 180 : 47,083 47 51% 47 District Equjpment 75,ooo· 114.,343 322,000 247,000 207,657 181.61% -48 Repairs & Maintenance .~9 l'Y.l~terials. ~~rvices, s_0pplies 1, 7,50,·qoo;. : 2,668,007 3,904,050 2,154,050 :, 1,236,04.3'' . . 46.33·% 50 Service Contracts ·~ 40,QQO,: 6Q,S83 1·,383,450 1,343,450 ... ) 1~.&22,467 ' ·2168.58% ' 51 ~esearch & Monitoring 1,69Q,OOD ' ,2,576-,533 2, 135,500 445,500 ' ('A41,033);' (17.12%) 52 Travel, Meetings & Training 55,000 83,852 901 ,850 846,850" ·S-17,998 . 975.53% 53 Utilities 54 Diesel for Generators 225,000 343.,029 11 ,000 (214,000) (332,029). (96.79%) 55 Power 4,500,000 6,860,590 921,500 (3,578,500) (5,939,090) (86.57%) 56 Natural Gas 620,000 945,237 1,130,000 510,000 184,763 19.55% 57 Telephone 70,000 106,720 251,850 181,850 145,130 135.99% 58 Water 65,000 99,097 830,900 765,900 731 ,803 738.47% 59 Other Expenses 60 Freight 30,000 45,737 52,560 22,560 6,823 14.92% 61 General 80,000 121 ,966 169,000 89,000 47,034 38.56% 62 AQMD Fees 120,000 120,000 120,000 no base 63 Prior Years Exp/ Reappropriations 50,000 76,229 220,000 170,000 143,771 188.60% 64 General Manager's Contingency 340,000 340,000 340,000 no base 65 Uncollectable Accounts 2,000 3,049 (2,000) (3,049) (100.00%) 66 Non-Operating Expenses 5,000 7,623 44,250 39,250 36.627 480.49% 67 Total Materials, Supplies & Serv 16,778,000 25,579,328 29,109,550 12,331,550 3,530,222 13.80% 68 Total Gross Jt Oper Expenses 30,359,000 46,284,588 70,397,250 40,038,250 24,112,662 52.10% 69 Charge Outs and Cost Alloc (2,686,000) (4,095,010) (19,906,600) (17,220,600) (15,811,590) 386.12% 70 Revenues (898,000) (1,369,069) (4,490,650) (3,592,650) (3, 121,581) 228.01% 71 Net Joint Operating Exp 26,775,000 40,820-,509 46,000,000 19,225,000 5, 179,491 12.69% G:\e;c:cel dta\fin\21 O\streed\comp with 1986 11:55AM ATTACHMENT 5 08/14/2000 Page 1 of2 Budget Comparisons Two Years With Similar Daily Flows 1985-86 vs. 2000-01 Line Item Account Percent to Total Comparisons 1985-86 Adj Percent to Percent to 1985-86 for CPI chg Gross 2000-01 Gross Budget 170.6/111.9 JO Expense Budget JO Expense 1 Salaries & Wages 10,682,000 16,285,516 35.2% 34,839,700 49.5% 2 Employee Benefits 3 Retirement 2,071,000 3, 157,396 6.8% 2,400,300 3.4% 4 Workers Comp 120,000 182,949 0.4% 310,200 0.4% 5 Unemployment 0.0% 53,800 0.1% 6 Group Medical Ins 663,00Q 1,010,794 2.2°/o 3,614,500 5.1% 7 Uniform ,Rental 45,000 .68,606 0.1% 69,200 0.1% 8 Tota! Benefits 2,899,000 4,41:9,.7,4'4 9.5% 6,448,000 9.2% ~~ 9 Total Sa,laries, Wag~s _& Bene.fits 13,581,000 20,705,260 . ·44.7% 41,287..,700 586% 10 Gasoline, Oif. & Diesel :265,000 . 404;013 0.9% 187,300 0.3%.! 11 Insurance 291,000 . 443~651 1.0% 1.200,000 1.7% 12. Membefships 18,000 27,442 . 0.1% 185,500 0.3%· 13 Office Expense 14 Supplies 75,000 114,343 0.2% 141,100 0.2% 15 Other 40,000 60,983 0.1% 89,300 0.1% 16 Computer related 250,000 0.4% 17 Minor Furniture, Fixtures, etc 87, 100 0.1% 18 Operating Supplies 19 Chlorine & Odor Cntrl 1,650,000 2,515,550 5.4% 997,800 1.4% 20 Sulfide Control 1,425,000 2.172,520 4.7% 1,435,000 2.0% 21 Chemical Coagulants 780,000 1, 189, 169 2.6% 1,361,100 1.9% 22 Cen Gen & Other Chemicals 34,000 23 Lab Chem & Supplies 100,000 152,458 0.3% 386,400 0.5% 24 Tools 50,000 76,229 0.2% 120,700 0.2% 25 Solvents, Paints, Janitor Sup 125,000 190,572 0.4% 43,950 0.1% 26 Oth er Operating Supplies 130,000 198,195 0.4% 146,7 10 0.2% 27 Contractual Services 28 Groundskeeping (&Janitor 00) 30,000 45,737 0.1% 410,000 0.6% 29 Outside Lab Services 50,000 76,229 0.2% 248,200 0.4% 30 Waste Hauling & Gate Fees 980,000 1,494,084 3.2% 5,000,000 7.1% 31 Grit & Sludge Removal 900,000 1,372,118 3.0% 467,100 0.7% 32 Oxygen Plant Operations 295,000 0.4% 33 Other Contractual Services 204,000 311,013 0.7% 801 ,400 1.1% 34 Professional Services 35 Legal 105,000 160,080 0.3% 420,000 0.6% 36 Audit & Accounting 25,000 38,114 0.1%· 45,500 0.1% 37 Engineering 30,000 45,737 0.1% 277,500 0.4% 38 Plant Security 195,000 0.3% 39 Other Professional Services 55,000 83,852 0,2% 1,047,500 1.5% G·\excel dla\frn\210\streed\comp w1lh 1986 11·54 AM line item %to total ATIACHMENT 5 08/14/2000 Page 2 of2 Budget Comparisons Two Years With Similar Daily Flows 1985-86 vs. 2000~01 line Item Account Percent to Total Comparisons 1985-86 Adj Percent to Percent to 1985-86 for CPI chg Gross 2000-01 Gross Budget 170.6 1111.9 JO Expense Budget JO Expense 40 Printing & Publications 41 In-House Reproduction 60,000 91,475 0.2% 254,300 0.4% 42 Outside Printing 33,000 50,311 0.1% 59.450 0.1% 43 Photo Processing 10,000 15,246 30,600 0.0% 44 Notices & Ads 25,000 38,114 0.1% 7,950 0.0% 45 Rents & Lepses 46 Outside Equipment Rent 65,000 99,097. 0.2% 146, 180 0.2% 47 District Equipment 75,000 114,343 0.2% 322,000 0.5% 48 Repairs & Mairi.tenance .4:9 '.. Materials, §ervices, _S.upplies 1,750,000 2,668,007 5.8% .~.904,050 5.5% 50 Service Con.tracts 4 0,000 6.0;983 0.1% 1,383,450 2.0% 51 Research & Monitoring 1,690,0QO ·2,576,533 5.6% 2,135,500 3.0% 52 Trav.el, Meetings & Training 55,000 83;852 0.2% 901,850 1.3% 53 Utilities 54 Diesel for Generators 225,000 • 343,029 0.7% 11,000 0.0% 55 Power 4,500,000 6,860,590 14.8% 921,500 1.3% 56 Natural Gas 620,000 945,237 2.0% 1,130,000 1.6% 57 Telephone 70,000 106,720 0.2% 251,850 0.4% 58 Water 65,000 99,097 0.2% 830,900 1.2% 59 Other Expenses 60 Freight 30,000 45,737 0.1% 52,560 0.1% 61 General 80,000 121,966 0.3% 169,000 0.2% 62 AQMD Fees 120,000 0.2% 63 Prior Years Exp/ Reappropriations 50,000 76,229 0.2% 220,000 0.3% 64 General Manager's Contingency 340,000 0.5% 65 Uncollectable Accounts 2,000 3,049 0.0% 66 Non-Operating Expenses 5,000 7.623 0.0% 44,250 0.1% 67 Total Materials, Supplies & Serv 16,778,000 25,579,328 60.8% 29,109,550 44.3% 68 Total Gross Jt Oper Expenses 30,359,000 46,284,588 105.5% 70,397,250 103.0% 69 Charge Outs and Cost Allee (2,686,000) {4,095,010) (8.85%) (19,906,600) (28.28%) 70 Revenues (898,000) (1,369,069) (2.96%) (4,490,650) (6.38%) 71 Net Joint Operating Exp 26,775,000 40,820,509 93.7% 46,000,000 68.3% G~ \excel .dta \fin \21 O\streed\comp With 1986 1·1·54 AM line item %to total COUNTY SANITATION DISTRICTS OF ORANGE COUNTY SUMMARYORGANIZA TJONAL CHART 1985-86 Exeou\iVe Cornmil\ee Board$ of Direciors 401 Aul/lorlzcd General Manager A£sisLanl General Mangger Special ComrniUe&s -------------------r--------------L-------------~-·---··-· -··--·---·--~·----·--·- MANAGEMENT-15 MANAGEMENT OFFICE-9 PERSONNEL OFFICE~ Public Information ADMINISTRATION & FINANCE· 27 Cler.cal 2 General& Admln 5 Director or Finance As5lsran1 Direcloror Finance A<:ooun1m9 6 Purchasing & Warehouse 12 Ch1ef Admln Assistant Managomenl s port ClarJcaJ 2 Plant Maintenance 45 Board Sol:fnlory Collot!JOO Fecifiries 21 Personnel Pe1sonnel Administrator Payroll MAINTENANCE-165 Superlnienclent /\SSfslant Superintendent Mochanllmf Maintel)ance S8- EJ11ttrlc;<ll M1~ten1nce 22 S~ro1y ln~lfUmentalion Mafnlenanoe lS MAINTENANCE, OPERATIONS & ENGINEERING-357 Clorical 2 Clenc:il 2 Plonl OperntJoM 95 Chief Engineer OPERATIONS-158 Dlrec1or or Operations Asslslllnl Oirecior Of Open:mons lnduatrial Wasle24 Laboratorle& 35 Clencal 3 Plant Constr 10 General Counsel ENGINEERING.J1 Deputy Chief Enginee1 Asslslanl Deputy Chief E lneer Dlolric1 Constr. 10 Project Mngmn16 ~ )> () I s: m z -I 0) COUNTY SANITATION DISTRICTS OF ORANGE COUNTY SUMMARY ORGANIZATIONAL CHART 2000-01 Steenng Committee Operatklm, Mice and Tech Serv Committee GMAdnun 2 Board of Directors 510 Aulhorlzed General Manager Plarin1119. Design and C011Slr Comm Ff!lnnc.e. Mmln and HR Commillee r------------~--------------------1--------------------~··--·-··-··-··-·---· -·-··- COMMUNICATIONS -9 Comm Manager Publ!C M9Nlgemel'I! BO.lrd seuelnry 1 lnformalion 3 Sup on 4 INFORMATION TECHNOLOGY-33 ITAdm1n 1 Director or Info Tech Cu•l()(nar & Programming & Process ConlfO! NNI Su 12 OIB Suw 10 tniogralloo 9 TECHNICAL SERVICES-94 5 Tech Se<V Admin1 Oirec1or or Tech Services ErMronment.al Laborntouns Source Conltol 34 Com & Mon 19 32 Human Resources f luman Res 5 Employee Develop ~.25 FlllilllCe Admin3 FINANCE· 36 5 Director or Finance Accounting 15 OPERATIONS & MAINTENANCE· 250 5 s..rety t. Em•rg Rup75 Direct°' or Oper& Mice O&MAdmin 1 Coflectlon Facllille1 18 5 Plant Opcrolion1 71.6 Mocharncat Mice 44 S C:antral Generalkin 9 Eler.1 & lnsir Mlce55.5 Air Ouaf ~ Spec Prof 10.5 Purchasing & Whse 17 5 Ger>eral Counsel ENGINEERING-73 25 Oirec1or Of Engineenng Englt1ellring Admin2 Pfannlng& Ocslgn33 25 Coos1rucllcn MMmn137 ... 08/14/2000 Comparison of Fixed Assets 06/30/1985 06/30/2000 Increase Land 3,289,034 7,733,672 4,444,638 Collection 163,342,779 315,363,531 152,020,752 Treatment 158,750,061 600,025,363 441,275,302 Disposal 22,409,773 90,007,323 67,597,550 Gen'l&Adm 22,509,032 107,283,094 84,774,062 In Progress 23,098.532 68,666,747 45,568,215 393,399,211 1, 189,079,730 795,680,519 G:\excel.dta\fin\21 O\streed\Fixed Asset Additions 1985-2000 Percent Change 135% 93% 278% 302% 377% 197% 202% ATTACHMENT 8 11:37 AM I \ I September 13, 2000 STAFF REPORT Excess Worker's Compensation Insurance July 1, 2000 to July 1, 2001 Introduction This memo reports on the results of efforts to develop alternative pf ans to replace existing Excess Worker's Compensation coverage, underwritten by Reliance National Indemnity Company, in light of recent financial strength rating downgrades of Reliance by A.M. Best, the insurance rating agency. The attached September 12 letter from Robert F. Driver Associates, the District's Insurance Broker of Record, summarizes the current position of Reliance, and presents information on coverage alternatives in today's tightening insurance market. Discussion The District's use of Excess Worker's Compensation insurance dates back to 1989-90. At that time, the Fiscal Policy Committee approved a Self-Insured Retention (S IR), or deductible of $250,000, for such coverage. Staff has reviewed the District's most recent five-year worker's compensation loss history with Cambridge Integrated Services Group, the District's third-party worker's compensation administrator, and has verified that the District has not incurred a loss which exceeded the $250,000 SIR. The District's current Reliance Excess Worker's Compensation policy provides coverage to statutory limits with an SIR of $250,000. The premium cost for the period July 1, 2000 to July 1, 20001, was $24,618. The policy was purchased through the CAM EX joint purchase program, which is managed by Driver. As reported by Driver, the current worker's compensation insurance market has hardened, with premiums being quoted at higher levels than in recent years. Through their marketing efforts, Driver has identified one insurance company, Employers Reinsurance Corporation (ERC), a California-admitted carrier, that has agreed to provide coverage using the same terms as the existing policy (i.e., statutory coverage with a $250,000 SIR). The annual premium cost would be $39,540; an increase of $14,922. Excess Worker's Compensation Insurance Page 2of2 September 13, 2000 Recommendation The District's Insurance Broker of Record recommends that the District bind coverage with ERC for the nine-month balance of the current renewal period (October 1, 2000 to July 1, 2001 ). Staff concurs with this recommendation in view of the continued deterioration of the financial condition of Reliance, and the tightening worker's compensation marketplace. The deductible for the ERC policy would remain at $250,000. Staff has confirmed with Driver that the District would receive a premium refund of approximately $18,460 from Reliance with termination on October 1. Further, the prorated premium cost for the ERC policy, from October 1, 2000 to July 1, 20001, would be approximately $29,655. Thus, the net cost increase would be approximately $11, 195. Staff recommends that we implement termination of the Reliance policy effective October 1, 2000, and concurrently, that we bind coverage with ERC. Alternatives 1. Bind coverage with ERC as recommended above, but increase the District's deductible from $250,000 to $300,000 for the balance of the current coverage period, at a premium cost savings of $4,530. Thus the net cost increase would be reduced to $6,665, from $11, 195. 2. Do not terminate the Reliance Excess Worker's Compensation policy for the balance of the current coverage period, since Reliance is a California- admitted carrier, and participates in the State's insurer guarantee fund, which covers losses for insurance companies who become insorvent. SVK:lc \\radon\data1\wp.dta\fin\210\crane\FAHR\Fahr2000\Sept\ExoessWorker's Comp.doc Attachment ROBERT F. DRIVER ASSOCIATES a Division of Robert F. Driver Co., Inc. ASSOCIATES Founded on knowledge, integrity and service. September 12, 2000 Steve Kozak, Financial Manager Orange County Sanitation District P.O. Box 8127 Fountain Valley, CA 92728-8127 Re: Excess Workers' Compensation Insurance Dear Steve: During the past two months we have provided periodic updates outlining the current status and potential changes anticipated for Reliance National Indemnity Company. We have watched as the company's A.M. Best Rating dropped from an A-XIV (Excellent; Financial Size Category 14; $1,S00_,000,000 to $2,000,000,000) to a very disappointing C (Weak). Although the process of selling the Workers' Compensation insurance division of Reliance continues, we find that the overall stability of the company continues to deteriorate. The decision to move the coverage now or continue insurance with Reliance remains a very difficult decision. It is important to note that Reliance affords coverage as a California admitted insurer and is protected by the State's insurer guarantee fund without limitation (except $500,000 for employers liability and Jones Act). This guarantee fund covers losses for companies who become insolvent. By way of background, Reliance had insured CAMEX members as of May 1, 1999 on a three year rate basis, guaranteed subject to their being able to arrange facultative reinsurance on the program. As of the May 1, 2000 anniversary date, Reliance was unable to secure reinsurance in a deteriorating insurance marketplace and could, therefore, no longer offer those rates and premiums -hence, the significant price increase at that time. Please note that CAMEX is an infonnaljoint purchase program with no formal organizational structure and no membership requirements with participants able to join or to leave the program at will. Only Continental Casualty Company (CNA) among those carriers contacted offered a CAMEX program quotation, but at a premium almost seventy per cent (70%) higher than expiring without a cash flow protection endorsement. CNA did not provide us an individual entity premium Newport Beach 4041 MacArthur Blvd, #300, P.O. Box 6450, Newport Beach, California 92658-6450 • (949) 756-0271 •Fax, (949) 756-2713 Lie # OC36861 •www.rfdriver.com Sa11 Diego Esco11dido Sacramemo Fres1to San Francisco Steve Kozak, Financial Manager Orange County Sanitation District Page2 September 12, 2000 allocation, but such premiums would generally be about 70% higher than those under the current program. Furthermore, CNA stipulated that their premium was predicated upon all existing members participating in their program, an unlikely event given our poll of the membership; consequently, we cannot recommend nor authorize CNA as a viable alternative program insurer. Employers Reinsurance Corporation (ERC) does offer individual entity quotations as detailed in our proposal. As ERC does afford a limited cash flow protection, we believe the insurer does offer a viable coverage alternative to member entities who cancel program coverage based upon Reliance's financial difficulties. We had previously djscussed the possibility of securing alternative carrier proposals from other insurers; however, ERC has advised us that they would need to "re-underwrite" their proposal with the current marketing information we would provide to other insurers. We believe their position implies a potentially higher revised premium quotation in a continwng deteriorating marketplace environment. We further believe that in the somewhat small underwriting community that ERC may become aware of any such marketing activities on your behalf which may have long-term negative implications. Please note that we did not originally offer multiple carrier individual quotations due to the fact that our sampling of random alternatives has underscored that ERC has been, by far~ the most competitively priced underwriter in the current marketplace. Given these circumstances, we believe that it is prudent to bind coverage through ERC, perhaps at a slightly higher SIR to mitigate additional cost. Sincerely, ~P Donald H. McLean, Jr. Senior Vice President DHM:pc Newport Beach 4041 MacArthur Blvd., #300, P. 0. Box 6450, Newport Beach, California 92658.6450 • (949) 756·027 J •Fax. (949) 756·27 l 3 Lie# OC3686/ • www.rfdriver.com Sa11 Diego Esco11dido Sacramento Fresno San Francisco INSURANCE COMPANY: BEST'S GUIDE RATING: CALIFORNIA STATUS: PROGRANI TERM: INSTALLMENT PERIODS: COVERAGE: CALIFORNIA MUNICIPAL EXCESS W ORKERS' COMPENSATION PROGRAM (CAMEX) REVISED PlWPOSAL JULY l, 2000 TO JULY 2002 ORANGE COUNTY SANITATION DISTRICT PRESENT Reliance National Indemnity Company C, Weak Admitted May I, 1999 to July 1, 2002 May 1, 2000 to July 1, 2000 July I, 2000 to July 1, 2001 Excess Workers' Compensation and Employer's Liability including: • Volunteers and Board Members • Jones Act and Incidental USL&H • Aircraft (Requires reporting of any aircraft with 8 or more seats within 120 days of acquisition) • Other States -California Benefits • No penalty for late claims reporting • Communicable Disease Endorsement • Cash Flow Protection Endorsement PROPOSAL 1 Continental Casualty Company (CNA) A, Excellent; Financial Size Category 15; Greater than $2,000,000,000 Admitted Annual -Effective date to be determined Not Applicable Excess Workers' Compensation and Employer's Liability jncluding: • Volunteers and Board Members • Jones Act and Incidental USL&H • Aircraft (Requires reporting of any aircraft with 8 or more seats within 120 days of acquisition) • Other States -California Benefits • No penalty for late claims reponing ~ Not Covered • Not Covered PROPOSAL2 Employer's Reinsurance Corporation (ERC) A..+, Superior; Financial Size Category 15; Greater than $2,000,000,000 Admitted Annual -Effective date to be determined Not Applicable Excess Workers' Compensation and Employqr's Liability including: • Volunteers and Board Members • Jones Act and Incidental USL&H • Aircraft (Requires reporting of any aircraft with 8 or more seats within 120 days of acquisition) • Other States -California Benefits • No penalty for late claims reporting • Communicable Disease Endorsement • Cash Flow Protection Endorsement (see attached sample endorsement) COVERAGE: (continued) Ll!VIJTS: SELF INSURED RETENTION: CALIFORNIA MUNICIPAL EXCESS WORKERS' COMPENSATION PROGRAM (CAMEX) JULY 1, 2000 TO JULY 2002 ORANGE COUNTY SANITATION DISTRICT PRESENT PROPOSAL 1 PROPOSAL 2 RELIANCE NATIONAL INDEMNITY COMPANY CONTINENTAL CASUALTY COMPANY (CNAl F.MPLOYat'S R£1NSURAl'ICE CORPORATION(ERQ • Foreign Voluntary Compensation Endorsement • Coverage for 4850 exposures Statutory -Workers' Compensation $5,000,000 Employer's Liability Limits apply to each accident for bodily injury and each employee for disease. fncludes allocated claims expenses $250,000 Retention applies each accident for bodily injury and each employee for disease. Includes allocated claims expense. Single SIR applies to a combined Workers' Compensation and Employer's Liability claim. 2 • Foreign Voluntary Compensation Endorsement • Not Covered Statutory -Workers' Compensation $5,000,000 Employer's Liability $1,000,000 Jones Act Limits apply to each accident for bodily injury and each employee for disease. Includes allocated claims expenses $250,000 Retention applies each accident for bodily injury and each employee for disease. Includes allocated claims expense. Single SIR applies to a combined Workers' Compensation and Employer's Liability claim. • Foreign Voluntary Compensation Endorsement • Coverage for 4850 exposures Statutory-Workers' Compensation $5,000,000 Employer's Liability Limits apply to each accident for bodily injury and each employee for disease. Includes aJJocated claims expenses $250,000 Retention applies each accident for bodily injury and each employee for disease. Includes allocated claims expense. Single SIR applies to a combined Workers' Compensation and Employer's Liability claim. ASSOCIATES PREMIUM BASED ON: PREMIUM: OPTIONS: CALIFORNIA MUNICIPAL EXCESS WORKERS' COMPENSATION PROGRAM (CAMEX) JULY l, 2000 TO JULY 2002 ORANGE COUNTY SANITATION DISTRICT PRESENT PROPOSAL I PROPOSAL2 .. RE:LIANCE NATJONAL INDEMNITY COMPANY CONTINENTAL CASUALTY COMPANY (CNA) EMPLOYER1SREINSURANCECORPORATION{ERQ $30,722,400 Estimated Annual Payroll $1,354,646 Annual Program Premium- Flat, non-auditable $24,618 Annual !ndividual Premium J $30,722,400 Estimated Annual Payroll $2,300,000 Minimwn Program Premium auditable based on actual annual payroll at a rate to be detennined $30,722,400 Estimated Annual Payroll Program premiwn not offered, individual quotations only. $39,540 Annual Individual Premium $300,000 SIR $ 33,500 Premium $400,000 SIR $ 28,500 Premium $500,000 SlR $ 24,800 Premium -ASSOCIATES FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Gary Streed, Director of Finance To Bd. of Dir. 09/27/2000 Item Number· Item Number FAHR00-73 SUBJECT: INCLUDING ANNUAL SANITARY SEWER SERVICE CHARGES ON THE 2000-01 PROPERTY TAX BILL GENERAL MANAGER'S RECOMMENDATION Recommend to the Board of Directors to adopt Resolution No. OCSD 00-XX, directing the County Tax Collector-Treasurer to include sanitary sewer service charges on the 2000-01 property tax bill. SUMMARY Section 54 73 of the California Health & Safety Code provides that sanitary sewer service charges may be collected as a separate line item on the annual property tax bill. The District has utilized this method of fee collection since the inception of these fees. The two principal benefits of this collection method are that the District does not need to develop or fund a utility billing division, and that failure to pay these fees results in a lien against the property, so all fees are ultimately received. The Code requires a new Resolution from the District directing the County Tax Collector to collect these fees every time the rates change. The rates for 2000-01 were adopted on June 28, 2000. Although these rates were lower than or equal to those adopted in 1997 as a part of a five-year rate schedule, they are a change from the prior year and this Resolution is required. PROJECT/CONTRACT COST SUMMARY The County Tax Collector-Treasurer charges us for a copy of the database, updates, and for minor programming. The County Auditor charges us, via deduction from fees collected, for the actual collection expenses. Annual collections costs are approximately $220,000 or .3% of the sewer service fees. 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. D Not applicable (information item) \\radonldala1\wp.dta\linl210\CfanelFAHR\Fahr2000\Sepl\PropTaxBillSSFCollec.doc Revised: 8120198 Page 1 ADDITIONAL INFORMATION None. ALTERNATIVES Collect these fees with OCSD staff and a direct billing program. This is a more costly alternative and one without a method to force payment. CEQA FINDINGS N/A ATTACHMENTS 1. Resolution No. OCSD-00-XX. l\radonldala11wp.dlalflnl210\crane\FAHR\Fahr2000\Sepl\PropTaxBillSSFCollec.doc Revised: 8120198 Page 2 RESOLUTION NO. OCSD 00-XX DIRECTING COUNTY TAX COLLECTOR TO COLLECT SANITARY SEWER SERVICE CHARGES ON 2000-01 PROPERTY TAX BILLS A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT DIRECTING THE COUNTY TAX COLLECTOR TO INCLUDE SANITARY SEWER SERVICE CHARGES ON THE 2000-01 PROPERTY TAX BILLS AND REPEALING RESOLUTION NO. 99-11 WHEREAS, by adoption of Ordinance No. OCSD·OS, Continuing and Establishing Sanitary Sewer Service Charges, and as amended by Ordinance No. OCSD-13, the Board of Directors of the Orange County Sanitation District elected to adopt, impose, and collect rates and charges for sanitary sewer services and facilities provided by said District, and established procedures related thereto. The sanitary sewer service charges were set by Ordinance No . OCSD-05, and amended by Ordinance No. OCSD-13, as set forth therein; and WHEREAS, California Health & Safety Code Section 5473 provides that such charges, as adopted by District Ordinance, may be collected on the County tax roll in the same manner, by the same persons, and at the same time as, together with, and not separate from, its general taxes; and WHEREAS, as part of the budget preparation process, the District's Management has prepared financial and engineering reports, setting forth financial projections for providing the wastewater collection, treatment, and disposal services and facilities to the District's service areas for Fiscal Year 2000-01 . Said reports have been made available to the public for Fiscal Year 2000-01. The charges established by Ordinance No. OCSD-05, and as amended by Ordinance No. OCSD-13, reflect an allocation of the costs of operation and maintenance, such that the charges do not exceed the estimated reasonable costs to provide the wastewater collection, treatment, and disposal services and facilities. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE. AND ORDER: Section 1: Pursuant to California Constitution Article XlllD (Proposition 218), as of July 1, 1997, sanitary sewer service charges are deemed assessments. The sanitary sewer service charges set by Ordinance No. OCSD- 051 as amended by Ordinance No. OCSD-13, comply with the provisions of 1 Article XlllD, in that they are existing charges first set by the Board of Directors of the District prior to November 6, 1996. The charges are not increased, and the methodology for the rate is the same as in previous years. The charges are imposed exclusively to finance the capital costs, maintenance, and operating expenses of the District" sewer facilities. Section 2: That the rates and charges set forth in Ordinance No. OCSD-05, as amended in Ordinance No. OCSD-13, are affirmed or modified by the Board of Directors, as consistent with the findings hereinabove stated, for Fiscal Year 2000-01 , in the following amounts: Single Family Residential Rates I Revenue Area 2000-01' Rate 1 $78.00 2 $78.00 3 $78.00 5 $78.00 6 $78.00 7 $73.00 11 $78.00 13 $78.00 14 All Revenue Area 14 Costs Are Paid Directly By IRWD Section 3: That pursuant to California Health & Safety Code Section 5473, the County Tax Collector is hereby ordered and directed to include sanitary sewer service charges, as adopted by Ordinance No. OCSD-05, and amended by Ordinance No. OCSD-13, by the same persons, and at the same time as, together with and not separate from, the general taxes; and that such sewer service charges be included in the annual property tax bills for each year thereafter, for so long as the rates do not change and this Resolution remains in effect. Section 4: That pursuant to California Health & Safety Code Section 54 73, this Resolution shall remain in full force and effect until amended or repealed, or until such time as the rate of sewer service charges, as established by Ordinance No. OCSD-05, and amended by Ordinance No. OCSD-13, is changed. Section 5: That the General Manager be, and is hereby authorized and directed to execute any necessary documents or agreements to effect the order set forth in Section 1 herein. Section 6: That Resolution No. OCSD 99-11 is hereby repealed . 2 PASSED AND ADOPTED at a regular meeting held September 27, 2000. CHAIR ATTEST: BOARD SECRETARY 3 v. v. p ~ Ml~,/). "' FAHR COMMITTEE ~ I a ~ Meeting Date To Bd. of Dir. 09/13/00 09/27/00 AGENDA REPORT Item Number Item Number FAHR00-64 Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Steve Kozak, Financial Manager SUBJECT: TREASURER'S REPORT FOR THE MONTH OF AUGUST 2000 GENERAL MANAGER'S RECOMMENDATION Receive and file Treasurer's Report for the month of August 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) H:lwp.dtlllllgenda\FAHRIFAHR200CA2000 Agenda Report.IFAHRCJ0.$4.doc Rflllised: 8/20/98 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 August 31, the District received $32.67 million as the capital reserves reimbursement portion from the issuance of the Series 2000 COPs. The funds were deposited in the Long-Term 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. 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. H:lwp.c!talagonda\FAHRIFAHR200<1.2000 Agenda RoportslFAHR00-64.doc Revised: 8l20l98 Book Ba ancps ;;~ . t J,\ugust 0~. 2opo '; .1 $ 2,180,873 369,024 2,519,000 33,255,555 369,973,951 1,692 32,137,461 8,000 $440,445,556 6.5 5.8 6.2 5.4 5.8 6.4 Page2 ATTACHMENTS 1. Monthly Investment Reports 2. Monthly Transaction Report t1:\wp.cn.lagenda\FAHRIFAHR2000.2000 Ageno1 ReporlslFAHR00-64.doc R!Msed: 8l20l98 Page3 Prepared by Finance, 09/12/2000, 10:24 AM Monthly Treasurer's Report District Fund Balances $450,000,000 ------------------------------ $400,000,000 -1---1.~~f----~~:ld---- $350,000,000 +---tU....,~f----~~~----16~~---t~~f-----{I ~~ $300 I 000, 000 -f----t'.X)(}~---O<XXX>t----OOQ<X)i---~OO<XJ----t:'.)OO<>Ot-----P~Ml---1 $250 I 000 ,000 -J-------t'}()('}~---OO(XX)i----{)QQ<X)t----i>()OO(_XJ-----r')00(_'}(')4-----Pv<..J<....x.xJ--------f $200' 000, 000 -t--t:)()C~r-----0000<.>t----VV<XM----tOO<:xx:Jr----no00<.~---P\i~~----i $150 I 000 I 000 -f----t'.X)O~---O<XXX>t----OOQ<X)i---~OO<XJ----t:'.>OO<>Ot-----P~Ml---1 I $100 I 000, 000 -1--t'.X){)~---OO<XXl>t-----f,X;>QQ<)t---~<XXXJ----t'.)<X)(~------f~N<)t--t $50, 000 I 000 -f----t'.X)O~---O<XXX>t----OOQ<X)i---~OO(XJ----t:'.)OO<>Ot-----P~MJ---1 $0 -+-~~~U-~...---tc~~.&-..__,,.~~~c.o.i.~-.-~-lo.A.A.0...o...4-~--.--~.M!t....A...6..A...ii...L-~....------i:~'-X..XJ.-~ Mar, 00 Apr, 00 May, oo 2! PIMCO -Long-term ~Debt Seivice Reseives c:JBankAccts El Dist 11 GO Bond Fund G:\excel.dta\fin\2220\geggi\Finance\monthly treasurers report Jun,00 Ill PIMCO -Short-term CDLAIF •Petty Cash Jul, 00 Aug,00 MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ending 31 August 2000) Liq11id Operati11g Monies (603) 15.1.l 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/Joss) of 1% Change: 15.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: (see attached schedule) 15.1.5 PORTFOLIO MATURITY % of Portfolio Maturing within 90 days: 15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: ] 5.1.7 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: Comme111ury $33,245,298 $33,255,555 $33,233,132 $33,233,027 0.23 0.20 $77,479 0% 79% "AA+" See Note See Note Portfolio 0.57 1.72 6.26 4.35 • Interest rates at the short-end of the yiulll curve rose in August (three-month T-Bills up 1.2 basis points to 6.30%), while the long-cod posted decreas..:s (30~year Treasuries down 12 basis points to 5.67%). The Liquid portfolio outperfonned its benchmark by 7 basis points in August, and outperformed by 54 basis points year-to-date. PIMCO's emphasis on commercial paper and short-term notes enhanced returns. Index 0.50 1.45 5.51 3.81 NOTE: A Finova Capital corporate note, $475,000 par amount, 6.375% coup·on, maturing on October 15, 2000 (currently rated Bal by Moody's), and an !CT Wilmington debenture, $1,000,000 par amount, 9.5% coupon, maturing on November 15, 2000 (currently rated Baa2 by Moody's). are held in the Liquid Operating Monies portfolio. JI:\" \F/N.4NCE:\ \R£l'ISE:D UQOHOO.Rl'T MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ending 31 August 2000) Long-Term Operating Monies (203) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIM CO • Mellon I I Historical Cost: • PIM CO • Mellon 15.1.2 MODIFIED DU'RA TION Of Portfolio: Of Index: 15.l.3 1 % INTEREST RA TE CHANGE Dollar Impact (gain/loss) of 1 % Change: 15.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: (see attached schedule) 15.1.5 PORTFOLIO MATURITY % of Portfolio Maturing within 90 days: 15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: 15.1 .7 SECURITIES BELOW"~" 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: Comme11tary $370,460,222 $369,973,951 $369,106,400 $370,610,816 2.02 2.37 $7,564,960 0% 45% "AA+" 0% Yes Portfolio Index 1.02 0.93 2.95 2.99 6.84 5.96 5.24 4.68 • While three-month yields rose during August (90-day T-Bills up 12 basis points to 6.30%), yields on longer maturities declined (5-yearTreasury Notes down 18 basis points to 5.96%). • The Long-Tenn portfolio outperfonned its benchmark by 9 basis points in Au.gusL and has outperfonned by 56 basis points year-to-date. • PIMCO's decision to underweight corporate notes improved portfolio returns~ as corporates underperfonned other sectors. • PlMCO's decision to hold inflation-protection bonds slightly detracted from returns as this segment underperfonned Treasuries. • Holdings of mortgage backed securities enhanced relative returns as this sector outperformed Treasuries. ll:1 IFINANC£11JOI !REVISED l-TIJBOO Rl'T ~ ORANGE COUNTY SANITATION DISTRICT PAGE.' BASE; USD NET ASSET SE.CTOR SUMMARY OCSF0751 JJ02 31-AUG-2000 FINAL LIQUID OPER-PIMCO %OF UNREALIZED PORTFOLIO DJSTRIBUTION COST MARKET VALUE TOTAL GAlN/LOSS CASH & CASH EQUIV ALEN TS UNITED ST A TES COMMERCIAL PAPER -DISCOUNT 4,929,4?0.50 4,929,470.50 14.63% 0.00 FEDERAL HOME LOAN MORTGAGE -LESS 4,737,667.75 4, 744,881 .67 14.08% 7,213.92 FNMA ISSUES-LESS THAN lYR 6,001,440.50 6,001,440.50 17.81% 0.00 FED HM LOAN BNK -LESS THAN I YR 1,280,435.00 I ,280,435.00 3.80% 0.00 MUTUAL FUNDS 91,794.08 91,794.08 0.27% 0.00 TOTAL UNITED STATES 17,040,807.83 17,048,021.75 50.60% 7,213.92 TOTAL CASH & CASH EQUIV A LENTS 17,040,807 .83 17,048,021.75 50.60% 7,213.92 FIXED INCOME SECURITIES UNITED STATES U.S. GOVERNMENTS 6,526,78 1.25 6,573,204.00 19.51% 46,422.75 U.S. AGENCIES 270,789.06 272,379.25 0.81% 1,590.19 ABS: CAR LOAN 905,913.00 900,288.00 2.67% -5,625.00 BANKING & FINANCE 6,557,951.05 6,556,071 .65 19.46% -1,879.40 INDUSTRJAL 922,860.00 904,950.00 2.69% -17,910.00 UTILITY -GAS 495,845.00 498,070.00 1.48% 2,225.00 UTILITY -T8LEPHONE 512,080.00 502,570.00 1.49% -9,510.00 TOTAL UNITED STATES 16,192,219.36 16,207,532.90 48.10% 15,313.54 TOTAL FIXED INCOME SECURJTlES 16,192,219.36 16,207 ,532.90 48.10% 15,313.54 OTHER PORTFOLIO ASSETS PAY ABLES/RECElV ABLES 438,342.82 438,342.82 1.30% 0.00 TOTAL 438,342.8.2 438,342.82 1.30% 0.00 TOTAL OTHER PORTFOLIO ASSETS 438,342.82 438,342.82 1.30% 0.00 NET PORTFOLIO ASSETS 33,671,370.01 33,693,897.47 100.00% 22,527.46 I J-Sep-2000 12:05:34 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 7 BASE: USD NET ASSET SECTOR SUMMARY OCSF07522202 31-AUG-2000 FINAL LONG TERM OPER-PlMCO %OF UNREALIZED PORTFOLIO DISTRIBUTION COST MARKET VALUE TOTAL GAIN/LOSS CASH & CASH EQUIVALENTS RECEJV ABLES 51,269.55 51,269.55 0.01% 0.00 PAYABLES -46,096.562.50 -46.096,562.50 -12.33% 0.00 TOTAL -46,045,292.95 -46,045,292.95 -12.31% 0.00 UNITED ST A TES COMMERClAL P APBR-DlSCOUNT 49,064,618.50 49,064,618.50 13.12% 0.00 FEDERAL HOME LOAN MORTGAGE -LESS 15,393,223.54 15,393,223.54 4.12% 0.00 FNMA ISSUES -LESS THAN !YR 1,869,512.39 1,869,512.39 0.50% 0.00 FED HM LOAN BNK -LESS THAN l YR 2,662,092.00 2,662,092.00 0.71% 0.00 REPURCHASE AGREEMENTS 32,600,000.00 32,600,000.00 8.72% 0.00 MUTUAL FUNDS 263,120.69 263,120.69 0.07% 0.00 TOTAL UNITED STATES lOI ,852,567.12 IO 1,852,567.12 27.23% 0.00 • TOTAL CASH & CASH EQUIV A LENTS 55,807,274.17 55,807,274.17 14.92% 0.00 FIXED INCOME SECURITrES UNITED STATES U.S. GOVERNMENTS 46,808,923.45 46, 769,983.42 12.51% -38,940.03 U.S. AGENCJES 100,668,301.01 I 00,967,538.15 27.00% 299,237.14 ONMA SINGLE F AMJL Y POOLS 32,194,687.50 32, 199,250.00 8.61% 4,562.50 GNMA MULTIFAMILY POOLS 14,252,314. 76 I 4,294,4 I 5.22 3.82% 42,100.46 FHLMCPOOLS 8,461,865.25 8,301,230.24 2.22% -160,635.01 FHLMC MULTI CLASS 5,085,247.48 4,98 1,351.96 1.33% -I 03,895.52 1ASSET BACK.ED SECURJTJES 16,455.42 16,434.86 0.00% -20.56 IABS: HOME EQUITY 241,885.92 240,826.46 0.06% -1,059.46 OTHER GOVERNMENT OBLIGATIONS 2,485,040.44 2,476,594. 12 0.66% -8,446.32 MUTUAL FUNDS 1,000,000.00 991,400.00 0.27% -8,600.00 BANKJNG & FINANCE 70,215,542.81 69,942,549 43 18 70% -272,993.38 fNDUSTRIAL 7,126,189.00 6,883, 738.40 J.84% -242,450.60 UTILITY -ELECTRIC 8,096,080.00 7,953,180.00 2.13% -142,900.00 UTILITY -GAS 7,300,000.00 7,302,263.00 1.95% 2,263.00 UTILITY -TELEPHONE 7,497,255.00 7,360,200.00 1.97% -137,055.00 G. 0. CITY/MUN1 l, 723,280.00 1, 786,200.00 0.48% 62,920.00 HOSPITAL 1,630,474.05 1,699,521.55 0.45% 69,047.50 1 J-Sep-2000 12:06:54 Executive Workhench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 2 BASE: USD NET ASSET SECTOR SUMMARY OCSF07522202 31-AUG-2000 FINAL LONG TERM OPER-P!MCO %OF UNREALIZED PORTFOLIO DISTRIBUTION COST MARKET VALUE TOTAL GA JN/LOSS TOTAL UNITED STATES 314,803,542.09 314,166,676.81 84.00% -636,865.28 TOTAL FIXED INCOME SECURITIES 314,803,542.09 314,166,676.81 84.00% -636,865.28 OTHER PORTFOLIO ASSETS PAYABLES/RECEIVABLES 4,017,411.13 4,017,411.13 1.07% 0.00 TOTAL 4,017,41 l.13 4,017,411.13 1.07% 0.00 TOTAL OTHER PORTFOLIO ASSETS 4,017,411.13 4,017,4IJ.l3 1.07% 0.00 NET PORTFOLIO ASSETS 374,628,227.39 373,991,362.11 100.00% -636,865.28 ll-Sep-2000 12:06:54 Executive Workbench YLD~AL YIELD ANALYSIS PAGE 1 OCSF07511102 2000/08/31 RUN DATE 09/07/00 DISTRICT: LIQUID OPERATING RUN TIME 14.02.38 -=----...~--=::::;:: PAR VALUE YTM AT CURRENT MOODY MARl<ET TOTAL COST/ % TYPE SECURITY IO SECUR.ITY PESCRIPTION BOOK YIELD S-P PR.ICE MARKET VALUE % TOTAL -----~---------------------------------------------------~-------------------------~------- CASH ' CASH EQUIVALENTS 91,794.08 DREYFUS TREASURY CASH MGMT .ooo 6.297 AAA 100.000 91,794.08 .53 996085247 AAA 91, 794. 08 .28 400,000.00 FEDERAL HOME LN MTG CORP DISC 6.505 .000 P-1 99.158 396,631.67 2.32 3133961<93 MAT 10/17/2000 A-1+ 396,631.67 1.19 1,300,000.00 FEDERAL HOME LN MTG CORP DISC 6.507 .ooo P-1 99.677 1,288,587.08 7.60 313396G56 MAT 09/19/2000 A-1+ 1,295,801.00 3.90 5,600,000.00 FEDERAL NATL MTG ASSN DISC NTS 6.541 .ooo P-1 98.373 5,508,909.00 32,31 313588M93 MAT 11/02/2000 A-1+ S,508,909.00 16.57 1,300,000.00 FEDERAL HOME LN BK CONS DISC 6.549 .000 P-1 98.495 1,280,435.00 7.51 313384F20 MAT 09/08/2000 A-1+ 1,280,435.00 3.85 2,100,000.00 FEDERAL HOME LN MTG CORP DISC 6. 561 .ooo P-1 98.457 2,067,592.33 12.12 313396F81 MAT 09/14/2000 A-l+ 2,067,592.33 6.22 900,000.00 NIKE INC 01SC 6.579 .ooo P-1 \ 98.951 890,560.50 s.22 654102J66 09/06/2000 890,560.50 2.68 000,000.00 BECTON DICKINSON DISC 6.581 .000 P-1 98.915 791,320.00 4 .64 07588RJ89 09/08/2000 791,320.00 2.38 200,000.00 FEDERAL NATL MTG ASSN DISC NT 6.586 .000 P-1 98.700 197,400.00 1.15 313588F91 MAT 09/15/2000 A-1+ 197,400.00 ,59 1,000,000.00 FEDERAL HOME LN MTG CORP DISC 6.590 .000 P-1 98.486 984,856.67 5.77 313396G72 MAT 09/21/2000 A-lt 984,856.67 2.96 600,000.00 HONEYWELL INTL DISC 6 .638 .ooo 98.367 590,205.00 3.46 43851RLMO 11/21/2000 590,205.00 1. 77 900,000.00 DAIMLERCBRYSLER DISC 6 .640 .ooo 98.492 886,429.50 5.19 2338EOJS6 09/26/2000 886,429 .50 2.67 900,000.00 GOLDMAN SACHS LP DISC 6 .652 .000 P-1 98.310 884,794.50 5.19 38142Tl<J3 10/18/2000 884,794.50 2.66 300,000.00 FEDERAL NATL MTG ASSN DISCOUNT 6 .67 3 .ooo P-1 98. 377 295,131.50 1. 73 3135881<46 MAT 10/12/2000 A-1+ 295,131.50 .89 YLDANAL YIELD ANALYSIS PAGE 2 OCSF07511102 2000/08/31 RUN DATE 09101 /00 DISTRICT: LIQUID OPERATING RUN TIME 14. 02. 38 -:::..;::::=-=c::#: -::..c::=:---e -C':'"::::-=::::c.---:==:c-rm===- PAR VALUE YTM AT CURRENT MOODY MAR.KET TOTAL COS[;/ % TYPE SECURITY IO SECURITY DESCRlPTION BOOK YIELD S -P PRICE MAR.KET VALUE \ TOTAL ----------------------~--~----.---------------------------~----------------------- 900,000.00 MOTOROLA !NC DISC 6 .693 .000 P-1 98.462 886,161.00 5.1 9 62008AJL4 09/20/2000 886, 161. 00 2.66 ------------------------------------- TOTAL CASH & CASH EQUIVALENTS 6.495 .055 17,040 ,807.83 100.00 17,0 48,021 .. 75 51.27 FIXED INCOME SECURITIES 6,600,000.00 U S TREASURY NOTES 5,205 4.016 AAA 99.594 6, 526, 781.25 40.55 9128274T6 04.000% 10/31/2000 OD 10/31/98 AAA 6,573,204 .00 19. 77 900,000.00 FORD MTR CR MTN • TR 00538 6.312 7 .018 A2 100.032 905,913.00 5.55 345402YI<l 7.020% 10/10/2000 DD 10 /10/95 A 900,288.00 2. 71 900,000.00 GENERAL MTRS CORP NTS 6. 42 5 9.572 A2 100.550 922,860.00 5.58 370442AH8 9.625% 12/01/2000 DO 12/01/90 A 904,950.00 2.72 150,000.00 MORGAN J P & CO MTN SR 00043 6 .430 6.128 Al 99.953 149,625.00 .92 616B7YBUO 6.125\ 10/02/2000 DD 10/02/97 AA 149,929.50 .45 500,000.00 GTE CORP DEB 6. 669 9,327 A2 100. 514 512,080.00 3.10 362320AQ6 9 .375% 12/01/2000 A+ 502,570.00 1. 51 475,000.0Q FINOVA CAP CORP 6.820 6 .426 BA! 99.204 473,031.25 2.90 318074AF8 6.375% 10/15/2000 DD 10/11/95 BBB-471,219.00 .l. 42 175,000.00 CI T GROUP HLDGS MTN # Sk 00010 6 .862 5 .668 Al 99.248 173,383.00 1.07 12560QAI<5 5.625% 02/02/2001 OD 02/02/96 A+ 173,684.00 .52 500,000.00 UGl UTILS INC MTN #TR 00006 6. 899 6 .,1 94 A3 99.614 495,845.00 3.07 90 269QAF6 6.170% 03/06/2001 OD 03/06/98 A-498,070.00 1.50 2so,ooo.oo CliASE MANHATTAN CORP NEW SUB 6.984 9 .214 Al 10 l. 750 254,730.00 1.56 16161ABL1 9.375% 07/01/2001 OD 07/01/89 A 254,375.00 .76 275,000.00 FEDERAL HOME LN BK CONS BDS 7 .058 S .189 AAA 99.047 270,789.06 1.68 3133M6EA2 5.140% 05/02/2001 DD 11/02/98 AAA 272,379.25 .82 500,000.00 BANPONCE FINL CORP MTN #00081 7.316 6 ,784 A.3 99.497 4961495.00 3.06 06670QDJ4 6.750% 08/09/2001 00 08/09/96 BBB+ 497,485.00 1.50 l,000,000.00 ICI WILMINGTON INC GTD NT 7 . 34 4 9 .474 BAA2 100.270 1,008,480.00 6.18 449909AA8 9 .500% 11/15/2000 BBB+ 1,002,700.00 3.02 YLDANAL YIELD ANALYSIS PAGE 3 OCSF075ll102 2000/08/31 RUN DATE 09/07/00 DISTRICT: LIQUID OPERATING RUN TIME 14.02.38 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MAJU<ET VALUE % TOTAL -------------------~-----~------------------------------------------------------- 1,000,000.00 ARISTAR INC SR NT 7.346 7.740 A3 100.127 1,003,830.00 6.17 040420AT8 7.750% 06/15/2001 DD 07/07/94 A-1,001,270.00 3.01 1,000,000.00 FLEET/NORSTAR FI.NL GROUP INC 7 .365 9. 712 A3 101.933 1,024,020.00 6.28 339018AD5 9.900% 06/15/2001 DD 06/24/91 A-1,019,330.00 3.07 575,000.00 FCC NATL BK DE MTN f TR 00284 7 .426 6.390 AA2 99.765 570,262.00 3.53 30241NMV4 6.375% 03/15/2001 DD 03/14/96 AA-573,648.75 l. 72 420,000.00 BANKAMERICA CORP SR NT 7 .441 6.663 AA2 99. 812 417,034.80 2.58 066050CJ2 6.650% 05/01/2001 DD 05/01/96 A+ 419,210.40 1.26 l,000,000.00 DONALDSON LUFKIN & JEN TROOOll 7.530 6.152 A3 9.9. 322 987,060.00 6.12 25766CAL8 6. ll0% 05/15/2001 DD 05/27/98 A-993,220.00 2.99 ----------------------------·--- TOTAL FIXED INCOME SECURITIES 5.852 S.577 16,192,219.36 100.00 1"6,207,532.90 48.75 -----------------------------------------TOT.AL 6 .145 3.061 33,233,027.19 100.00 33,255,554.65 100.00 YLDANAL YIELD ANALYSIS PAGE 4 OCSF07522202 2000/08/31 RUN DATE 09/07/00 DISTRICT: LONG-TERM OPERATING RUN TIME 14.02.38 ===================~==~====::===:==~s::= PAR VALUE Y'l'M AT CURRENT MOODY MARI<ET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKEi! VALUE t TOTAL ------"~------------------------------------------------------------------------------------ CASH & CASH EQUIVALENTS 263,120.69 DREYFUS TREASURY CASH MGMT .ooo 6.297 AAA 100.000 263,120.69 .25 996085247 AAA 263,120.69 .06 32,600,000.00 GOLOM.AN SAC HS LP REPO 6 .400 6.400 100.000 32,600,000.00 32. 00 99372W648 06.400\ 09/01/2000 DD 08/31/00 32,600,000.00 7.84 3,300,000.00 FEDERAL HOME LN MTG CORP DISC 6. 462 .000 P-1 99.040 3,268,320.00 3.20 313396K93 MAT 10/17/2000 A-1.+ 3,268,320.00 .79 1,200,000.00 FEDERAL HOME LN MTG CORP DISC 6 .515 .ooo P-1 98.696 l,184,353.67 1.16 313396J53 MAT 10-5-2000 A-1+ 1,184,353.67 .28 600,000.00 FEDERAL HOME LN MTG CORP DISC 6.531 .ooo P-1 98.446 590,676.50 .57 313396K44 MAT 10/12/2000 A-1+ 590,676.50 , 14 700,000.00 FEDERAL NATL MTG ASSN DISCOUNT 6 .560 .ooo P-l 99,475 689,323.06 .67 313588865 MAT 09/28/2000 A-1+ 689,323.06 .17 1,200,000.00 FEDERAL NATL MTG ASSN orsc 6 .568 .000 P-1 98.349 1 ,180,189.33 1.15 313588L37 MAT 10/19/2000 A-1+ 1,180,189.33 .28 11,400,000.00 MOTOROLA CR co DISC 6 .581 .ooo P-1. 98 .915 11,276,310.00 11.07 62007AJ84 09/08/2000 11,276,310.00 2. 71 200,000.00 AMERICAN TEL & TL DISC 6 .594 .000 P-1 98.877 197,754 .22 .19 03018AJ69 09/06/2000 197,754.22 .05 10,500,000.00 FEDERAL HOME LN MTG CORP DISC 6 .610 .ooo P-1 98.570 10,3<19,873.37 10.16 313396F81 MAT 09 /14/2000 A-1+ 10,349,873.37 2.49 6,200,000.00 GENERAL ELEC CAP DISC 6 .632 .000 P-1 98.458 6,104,408.06 5.9.9 36959HKCO 10/12/2000 6,104,408.06 1. 47 2,300,000.00 BELL ATLNTIC FINL DISC 6.637 .000 P-1 98.386 2,262,869.69 2.22 07785AL19 11/01 /2000 2,262,869.69 .54 1,000,000.00 HONEYWELL INTL DISC 6 .638 .000 98.367 983,675.00 .96 43851RLl\IO 11/21/2000 983,675.00 .24 7,400,000.00 OAIMLERCHRYSLER DISC 6 .640 .000 98.492 7,288,420.33 7.15 2338EOJS6-09/26/2000 7 ,288, 420 .33 1. 75 YLDANAL YIELD ANALYSIS .PAGE 5 OCSF07522202 2000/08/31 RUN DATE 09/07/00 DISTRICT: LONG-TERM OPERATING RUN TIME 14-02.38 === ==.==.a:= ======= PAR VALUE YT.M AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY lo SECURITY DESCRIPTION BOOK YIELD S-P PRICE MAB.XET VALUE: % TOTAL ---------------.--------------------------------------------------- 1,900,000.00 OU PONT DE NEMOlJR DISC 6.646 .ooo P-1 97,957 1,861,175.09 1. 82 26354AM68 12/06/2000 1,861,175.09 ,45 5,600,000.00 ALUMINUM CO AMER DISC 6.665 .ooo P-1 98.721 5 1 528,351.11 5.42 02225AJ60 09/06/2000 5 1 528,351.11 1.33 i,000,000.00 ALUMINUM CO AMER DISC 6.6·80 .ooo P-1 98.358 983,575.00 .96 02225AJL7 09/20/2000 983,575.00 .24 12,800,000.00 USAA CAP CORP DISC 6.686 .ooo P-1 98.266 12,578,080.00 12.34 90328AJJ3 09/18/2000 12,578,080.00 3.02 2,100,000.00 FEDERAL HOME LN SK CONS DISC 7.430 .ooo P-1 98.596 2,662,092.00 2.61 J13384F79 MAT 09/13/2000 A-1~ 2,662,092.00 .64 -------------------------·-------TOTAL CASS & CASH EQUIVALENTS 6 ,465 3.360 101,852,567.12 100.00 101,852,567.12 24.49 FIXED INCOME SECURITIES 301,165.25 FHLMC GROUP 178-6064 .000 6.476 AAA .98 .047 293,824.36 .09 31348SWZ3 6.384% 01/01/2028 DD 12/01/97 AAA 295,283.49 .07 1,241,192.29 GNMA II POOL #-0080395 .000 6.516 AAA 99.750 1,229,943.98 .39 36225CNM4 6.500% 04/20/2030 DD 04/01/00 AAA 1,238,089.31 .30 9,958,312.03 GNMA TI POOL #080408){ .000 G.517 AAA 99.734 9,857,172.92 3.16 36225CN28 6.500% 05/20/2030 DD 05/01/00 AAA 9,931,822.92 2.39 9,820,166.00 US TREASURY INFLATION INDEX NT 3. 716 3.640 AAA 99.594 9,790,746.19 2.79 9128273A8 3.625% 07/15/2002 DD 07/15/97 AAA 8,784,356 .13 2.11 25,008,130.00 US TREASURY lNFLATION INDEX NT 3.822 3.502 AAA 96.375 24,161,306.16 7.67 9128272M3 3.375% 01/15/2007 OD 01/15/97 AAA 24,101,585.29 5.79 1,879,091.40 SALOMON SMITH BARNEY BLDGS INP 4. 714 3.705 AA3 98.522 l,845,190.61 .58 79549BBG1 3.650% 02/14/2002 DD 02/14/97 A 1,851,318.43 .45 1 ,500,000 .00 ASSOCIATES CORP N A SR NTS 5.650 6 .588 Al 98.661 1,543,215.00 .47 046003HY8 6.500% 07/15/2002 DD 07/11/97 A+ 1,479,915.00 .36 3,950,000.00 GMAC NTS 5. 752 6.846 A2 100.220 3,918,768.50 L.26 370425QV5 PLTG RT 08/18/2003 OD 08/17/98 A 3,958,690.00 .95 YLOANAL HELD ANAL"lSIS PAGE 6 OCSF07522202 2000/08/31 RUN DATE 09/07/00 DISTRICT: LONG-TERM OPERATING RUN TIME 14.02.38 ------========~----=========·==========;========-=-===~;=~===:== PAR VALUE YTM AT CURRENT MOODY MARI<ET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRIC"E MAR.KET VALOE % TOTAL -~~~-~~-~--------------------------------------------------------- 1,000,000.00 HELLER FINANCIAL INC NTS 5.760 5.859 A3 98 .138 999,730.00 .31 42333HI<JO 5.750% 09/25/2001 DO 09/25/99 A-981,380.00 .24 1,000,000.00 HOUSEHOLD rIN MTN SR 100570 5. 775 5 .732 A2 100.'}.07 999,198.90 .31 44181KZT4 FLTG RT 08/01/2001 DD 09/04/98 A 1,002,010.00 .24 2,005,000.00 SEARS ROEBUCK ACCEP CORP MTN 5.804 6.676 A3 97 .968 2,060,739.00 .62 81240QGW6 6.540% 02/20/2003 DD 02/20/97 A-1,964,258.40 .47 3,000,000.00 SEARS RO.EBUCJ( ACCEP CORP MTN 5.849 6.704 A3 98.890 3,073,170.00 .94 81240QJAJ. 6 .630% 07/09/2002 DD 07/09/97 A-2,966,700.00 • 71 2,000,000.00 BANKERS TR NY CORP GLOBAL NT 5.881 6.794 Al 100.363 1,992,800,00 .63 066365DW4 FLTG RT 05/11/2003 DD 05/11/99 A-2,007,260.00 .48 230 ,431.20 FHLMC MULTICL MTG P/C 1574 E 5. 9.12 5.932 9~L 468 230,107.15 .07 3133T02D5 5.900% 06/15/2017 229,205 .31 .06 13,000,000.00 U S TREASURY NOTES 5 .940 5.964 AAA 100.609 13, 856, 871.10 4.41 91 28275N8 06.000% 08/15/2009 DD 08/15/99 AAA 13,884,042.00 3.34 1,945,000·.00 NEW JERSEY RLTB CARE SER B 5 .942 5. 436 AAA 87.379 1,630,474.05 .54 6457.9ERMO 4.750% 07/01/2028 DD 12/01/98 AAA 1 ,699,521.55 .41 15,000,000.00 FEDERAL NATL MTG ASSN MTN 5.981 5.869 AAA 9.9.172 14,955,300.00 4 .73 31364G2VO 5 .920% 07/19/2001 DD 07/19/9.9 AAA 14,875,800.00 3.58 2,500,000.00 MERRIL.L LYNCH NOTES 5.995 6.432 AA3 99.107 2,526,725.00 .78 59018SXP4 6.375% 10/01/2001 OD 10/03/97 AA-2,477,675.00 .60 2,000,000.00 MONTGOMERY ALA BMC SER B 6.001 5.598 AAA 89. 310 l, 723,280.00 .56 613041GH9 5.000% 11/15/202.9 DD 12/01/98 AAA 1,786,200.00 .43 7,500,000.00 BELLSOUTH TELECOMMUNICATIONS 6.010 6 .114 AA2 98.136 1,497,255.00 2.34 079867AX5 6.000% 06/15/2002 00 06/15/98 AAA 7,360,200.00 1. 77 2,490,390.89 STUDENT LN MKTG ASSN 98-2 Al 6 .026 6.520 AAA 99.446 2,485,040.44 . 78 78442GBA3 PLTG RT 04/25/2007 DD 06/18/98 AAA 2,476,594.12 .60 14,500,000.00 COMMIT TO PUR GNMA SF MTG 6.049 6. 771 AAA 96.000 13, 901, 875.00 4 .43 01N062698 6.500% 09/15/2030 AAA 13,920,000.00 3.35 12,500,000.00 FEDERAL HOMF LN MTG CORP DEBS 6.062 6.039 AAA .99.355 12,485,625.00 3.95 3134A3ZM1 6 .000~ 07/20/2001 DD 07/20/99 AAA 12,419,375.00 2 .99 YLDANAL YIELD ANALYSIS PAGE 7 OCSF07S22202 2000/08/31 RUN DATE 09/07/00 DISTRICT: LONG-TERM OPERATING RUN TIME 14.02.38 ---------------;-.. = = PAR VALUE YTM AT CURRENT MOODY MARI<ET TOTAL COST/ t TYPE SECURITY IO SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 'f. TOTAL -----------------------------------------------------------_,_ ______ ---------- 2,000,000.00 Bl\NKBOSTON CORP SR NTS 6.133 6 .222 A2 98.438 1,999,600,00 .62 06605TAL6 6.125% 03/15/2002 DO 03/12/99 A 1,968,760.00 .47 3,500,000.00 CHRYSLER FINL LLC MTN ~TR00615 6.154 6 .141 Al 100.046 3,498,635.00 1.11 17120QE80 FLTG RT 08/08/2002 DD 04/08/98 A+ 3,501,610.00 .84 1,700,000.00 MORGAN STANLEY MTN fTR 00311 6.180 6.492 AA3 100.125 1,699,511.20 .54 6174SENY3 FLTG RT 01/28/2002 OD 01/27/00 AA-1,702,125.00 .41 16,455.43 FIFTH THIRD BK AUTO TR 96A CLA 6.200 6.208 AAA 99.875 16,455.42 .oo 31677EAA4 6.200\ 09/01/2001 00 03/15/96 16,434.86 .oo 1,000,000.00 POPULAR INC MTN tTR 00004 6.201 6.254 A3 99 .140 i.,000,000.00 .31 73317PAD1 6.200% 04/30/2001 DD 04/21/99 BBB+ 991,400,00 .24 2,000,000.00 FORD MTR CR CO TERM ENHANCED 6.221 6.213 A2 99.953 1,998,613.60 .63 345397SC8 FLTG RT 08/27/2006 DO 08/27/98 A 1,999,060.00 .48 6,250,000.00 COMM.IT TO PUR GNMA SF MTG 6.247 6.419 AAA 93.468 5,835,937.50 1.85 OlN060692 6.00% 9/15/2030 AAA 5,841,750,00 1. 40 3,000,000.00 CONSOLIDATED EDISON N Y DEBS 6.271 6.181 Al 100.004 2,994,300.00 .95 209111CU5 FLTG RT 06/15/2002 OD 06/20/97 A+ 3,000,120.00 .72 241,885.92 GREEN TREE CORP 99~0 CL A-1 6 .290 6.318 AAA 99.562 241,885.92 .01 3935052Y7 6.290% 10/15/2013 OD 08/26/99 AAA 240,826.46 .06 4,500,000.00 FEDERAL NATL MTG ASSN MTN 6. 291 6.275 AAA 99.281 4,488,705.00 1.42 31364CXV5 6.230% 03/01/2002 DD 03/03/97 AAA 4,467,645.00 1.07 J,000,000.00 BELLER FINL MTN #TR 00246 6 .300 6.337 A3 99.421 3,000,000.00 .94 42333HLF7 FLTG RT 04/28/2003 OD 04/27/99 A-2,982,630.00 .72 3 1 0001 000.00 GENERAL MTRS ACCEP #'l'R 00562 6 .303 6.275 A2 99,734 3,793,958.00 1. 20 37042WZl<O FLTG RT 02/14/2003 DD 02/14/00 A 3,789,892.00 .91 2,8511134.18 FHLMC MOLTICLASS CTF E3 A 6 .316 6.612 AAA 98.366 2,854,252.33 .89 3133TCE95 VAR RT 08/15/2032 AAA 2,804,546,65 .67 2,530,644.27 GNMA GTD REMIC TR 2000-9 FH 6.320 6.295 AAA 100.404 2,530,644.27 .80 3837H4NX9 VAR RT 02/16/2030 AAA 2,540,868.07 .61 2,000,000.00 BEAR STEARNS COS INC 6 .330 6.863 A2 98.359 2,031,960.00 .62 073902AH1 6 .750% 04/15/2003 A 1,967,180.00 .47 YLDANAL Y!ELD ANALYSIS PAGE 8 OCSF07522202 2000/08/31 .RON DATE 09/07/00 DISTRICT: LONG-TERM OPERATING RUN TIME 14.02.38 = ==-=-==::;z;mr=---=-=r-=-=:s::.: PAR VALUE Y'l'M AT CURREN.T MOODY MARl<ET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MAJU(ET VALUE % TOTAL ~----------------------------------------------~----------------------------- 3,000,000.00 FORD MTR CR CO GLOBAL LANDMARJ< 6.350 6,982 A2 99.796 3,000,000.00 .95 345397SR5 FLTG RT 03/17/2003 DD 03/16/00 A 21993,880.00 .72 2,000 ,000.00 FORD MTR CR CO GLOBAL NTS 6 .351 6.861 A2 99.765 1,992,580.00 .63 345397RV7 FLTG RT 02/13/2003 DD 02/13/98 A 1,995,300.00 .48 4,000,000.00 HOUSEHOLD FIN CO MTN 6.440 6.436 A2 100.064 ~.000,000.00 l. 27 4418l'KZA5 FLTG RT 06/24/2003 DD 06/24/98 A 4,002,560,00 .96 2,000,000.00 FHLMC MULTICLASS CTF Tll A6 6 .496 6.675 AAA 97.380 2,0001000.00 .61 3133TDPV2 6.500% 09/25/2018 AAA 1,947,600.00 .47 2,000,000.00 HELLER FINANCIAL INC NTS ~.507 7.026 A3 100.089 2,000,000.00 .63 423328BK8 FLTG RT 06/25/2001 DD 06/25/99 A-2,001,780.00 .48 2,471,353.85 FHLMC MULTICLASS CTF SER 1620Z 6.512 7.194 AAA 83.403 2,315,213.91 .65 3133Tl7A4 6.000% 11/15/2023 DD 11/01/93 AAA 2,061,183.25 .so s,000,000.00 SALOMON SB HLDGS MTN 6 ,625 6 ,968 AAJ 99 .921 5,000,000.00 1. 59 79548EEE8 FLTG RT 04/28/2003 DD 04/28/00 A 4,996,050.00 1.20 81042 1 378.73 FHLMC GROUP JGS-0476 6 .628 7 ,032 AAA 99.547 8,168,040.89 2.54 31280DQ55 7 .000% 02/01/2003 DD 02/01/98 AAA 8,005,946.75 1.92 2,300,000.00 LEHMAN BROS HLDGS MTN TR 00333 6. 67 2 7 .611 Al 100.887 2,322,379.00 .73 52517PPWS PLTG RT 04/01/2002 DD 03/29/99 A 2,320,401.00 .56 5,000,000.00 LEHMAN .BROS HLDGS MTN 6 .674 7.325 A3 100.343 5,000,000.00 1. 59 S2Sl7P007 FLTG RT 12/12/2002 DD 12/07/99 A s,011,150.00 1. 21 1,801,673.28 GNM.A JI POOL #080088M 6. 705 6.342 AAA 100.516 1,841,084.89 .57 J6225CC20 VAR RT 06/20/2027 DD 06/01/97 AAA 1,810,969.91 .44 io,soo,000.00 FEDERAL HOME LN MTG CORP DE.BS 6. 711 6.478 AAA 97.250 10,323,075.00 3.25 3134A3TCO 6.300t 06/01/2004 DO 06/01/99 AAA 10,211,250.00 2.45 2,000,000.00 MARSH & MCLENNAN COS INC SR NT 6. 717 6 .785 A2 97.639 1,992,280.00 .62 571748AB8 6.625% 06/15/2004 DO 06/14/99 AA-1,952,780.00 .47 3,000,000.00 FORD .MTR CR CO GLOBAL LANDMARK 1>. 739 6,862 A2 97.635 2,995,000.00 .93 345397SJ3 6.700% 07/16/2004 DD 07/16/99 A 2,929,050.00 .70 900,000.00 FEDERAL HOME LN BK CONS BOS 6. 777 6.749 AAA 100.016 899,550.00 .28 3133MAQJ1 6 ,750, 02/01/2002 00 02/01/00 AAA 900,144.00 .22 YLDANAL YIELD ANALYSIS PAGE 9 OCSF07522202 2000/09/31 RUN D]\TB 09/07/00 DISTRICT: LONG-TERM OPERATTNG RUN TIME 14.02.38 ---------------~ PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK Yll:LD s-P PRICE MARKET VALUE % TOTAL -------------------.-.----------------------------------------------------------------- 2,500,000.00 COUNTRYWIDE BOMB LNS INC NT 6. 86 6 7 .017 A3 97. 617 2,499,400.00 • 77 2,2237UAB8 6.850% 06/15/2004 DD 06/24/99 A 2,440,425.00 .59 7,300,000.00 ONEOK INC NEW NT 6 .960 7.388 A2 100.031 7,300,000.00 2.32 682680AJ2 FLTG RT 04/24/2002 DD 04/24/00 A 7,302,263.00 1. 76 1,302,539.65 GNMA II POOL 10080023 6 .99 2 7.065 AAA loo. au 1,324,112.97 .41 36225CAZ9 7.125% 12/20/2026 DO 12/01/96 AAA 1,3131 533,08 .32 2,000,000.00 GNMA GTD REMIC TR 2000-2 ~A 7 .014 7.027 AAA 99.609 J.,996,875.00 .63 3837H3C70 7.000% 12/20/2022 AAA 1,992,180.00 .48 7,000,000.00 OLD KENT BK MTN SB 00001 7.084 7.485 A2 99.697 1,000,000.00 2.22 67982XAA6 VAR RT 11/01/2005 OD 04/28/00 A-6 ,978,090.00 1.68 2,100,000.00 FEDE~ NATL MTG ASSN DEBS 7 .113 6. 749 AAA 98.156 2,030,133.00 .65 31359MEY5 6.625% 09/15/2009 DD 09/01/99 AAA 2,061,276 .00 .so 2,000,000.00 LONG ISLAND LTG CO DEB 7.512 8.485 BAA3 96.639 2,151,250 .00 .61 542671CT7 8.200% 03/15/2023 DD 03/28/93 A-1,932,780.00 .46 1,310,294 .62 GREYSTONE SVCNG CORP FHA #95-7 7 .56 4 7.540 AAA 98.539 1,291,152.03 .41 39810fAE4 7.430% 06/0\/2003 DD 02/29/00 AAA 1,291,152.03 .31 l,000,000.00 FORD MOTOR CR CO NT 7.582 6.956 A2 97.033 965,170.00 .30 345397GV9 6.750% 05/15/2005 A 970,330.00 .23 972,882.59 WMP/HONTOON PAIGE #000-11150 7.684 7.667 AAA 97. 82f;l 951,752 .80 .30 302998GE3 7.500% 12/01/2030 DD 10/21/99 AAA 951 ,752.80 .23 3,000,000.00 PAClFICORP SECD MTN f T.R 00115 7. 709 7.251 A2 100.676 2,950,530.00 .96 69Sl2EEU5 7.300% 10/22/2004 DO 10/22/92 A 3,020,280.00 .73 35,200,000.00 FEDERAL NATL MTG ASSN MTN 7 .12.4 6,876 AAA 94.531 32,498,400.00 10.59 31364GYJ2 6 .500\ 03/12/2009 OD 03/12/99 AAA 33,274,912,00 8.00 16,000,000.00 COMMIT TO PUR GNMA SF MTG 7 .812 7 .891 AAA 101.375 26,358,750.00 8.38 01N090690 8.000% 09/15/2030 AAA 26,357,500.00 6.34 1,600,000.00 ALLSTATE CORP SR NT 7 .967 7.740 Al 101.748 1,594,032.00 .51 020002AL5 7,875\ 05/01/2005 DD 05/01/00 A+ 1,627,968.00 .39 YLDANAL OCSF07522202 DISTRICT: LONG-TERM OPERATING PAR VALUE SECURITY ID SECURITY DESCRIPTION TOTAL FIXED INCOME SECURITIES TOTAL YTM AT BOOK ------ ------5,242 5 .363 YI ELD ANALYSIS 2000/08/31 CURRENT MOODY YIELD S-P -------------- ----- 5.808 5.565 MARKET PRICE -------- PAGE RUN DATE RUN TIME TOTAL COST/ MARKET VALUE 314,803,542.09 314,166,676.81 416,656,109.21 416,019,243.93 10 09/07/00 14.02.38 \ TYPE % TOTAL 100.00 75.56 100.00 100.00 II ORANGE COUNTY SANITATION DISTRICT OCSGOOO 10000 OCSD-CONSOLJDATED SHARES/PAR SECURITYLD TRANSCODE PORTFOLIO DETAIL 01-AUG-2000-31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER RECEIPTS AND DISBURSEMENT TRANSACTIONS CASWSECURITIES RECEJVED FROM PLAN ADMINISTRATOR LONG TERM OPER-PIMCO 0.00 RECD FROM PLAN ADMINISTRATOR NA9123459 ORANGE COUNTY SANITATION CD OTHER ADMJNlSTRA TJVE EXPENSES LIQUID OPER-PJMCO 0.00 FED WIRE FEES FOR JULY NA9123459 cw LONG TERM OPER-PIMCO 0.00 FED WlRE FEES FOR JULY NA9123459 cw PURCHASES CASH & CASH EQUIVALENTS LONG TERM OPER-PIMCO 178,706,39 DREYFUS TREASURY CASH MGMT 996085247 B LIQUID OPER-P!MCO 11,412,95 DREYFUS TREASURY CASH MGMT 99608524? B /l-Sep-2000 JJ:56:01 TRADE DATE/ SETTLDATE/ COMPLDATE 3 l-Aug-2000 31-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 Ol-Aug-2000 01-Aug-2000 Ol-Aug-2000 0 l-Aug-2000 PAGE: AMOUNT/ COST/ GAIN/WSS 32,670,000.00 0.00 0.00 -2.55 0.00 0.00 -9.35 0.00 0.00 -178,706.39 178,706.39 0.00 ·11,412.95 11,412.95 0.00 £xec11rive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 2 PORTFOLIO DETAIL OCSGOOOJ 0000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOL/DATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURtTYJD TRANSACTfON DESCRIPTION/ SETTLDATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN(LOSS 178,706.39 ~ONG TERM OPER-PIMCO REYFUS m.E.ASURY CASH MGMT 0 I -Aug-2000 -178,706.39 996085247 01-Aug-2000 0.00 FC Ol-Aug-2000 0.00 LIQUID OPER-PIMCO 11 ,412.95 DREYFUS TREASURY CASH MGMT 0 l-Aug-2000 -11,412.95 996085247 0 l-Aug-2000 0.00 re Ol-Aug-2000 0.00 LIQUID OPER-PTMCO 1,300,000.00 FEDERAL HOME LN MTG CORP DIS 0 l-Aug-2000 -1,288,587.08 313396056 MAT 09/19/2000 Ol-Aug-2000 1,288,587.08 B CHASE SECURITIES, NEW YORK 0.00 LIQUID OPER-PIMCO I ,300,000.00 FEDERAL HOME LN MTG CORP DIS 0 l-Aug-2000 -1 ,288,587 .08 313396056 MAT 09/19/2000 01-Aug-2000 0.00 FC CHASE SECURITIES, NEW YORK 01-Aug-2000 0.00 LIQUID OPER-PJMCO 4,921.88 DREYFUS TREASURY CASH MGMT 02-Aug-2000 -4,921.88 996085247 02-Aug-2000 4,921.88 B 0.00 LlQUID OPER-PIMCO 4,921.88 DREYFUS TREASURY CASH MGMT 02-Aug-2000 -4,921.88 996085247 02-Aug-2000 0.00 FC 02-Aug-2000 0.00 LONG TERM OPER-PIMCO 7,010.41 DREYFUS TREASURY CASH MGMT 03-Aug-2000 -7,010.41 996085247 03-Aug-2000 7,010.41 B 0.00 Jl-Sep-2000 11:56:01 Executive Workbench OCSGOOO I 0000 OCSD-CONSOLIDATED SHARES/PAR SECURITY 1D TRANSCODE 7,010.41 996085247 FC 5,600,000.00 313588M93 B 5,600,000.00 313588M93 FC 2,300,000.00 07785ALl9 B 2,300,000.00 07785AL19 FC 34,85 l.39 996085247 B 34,851.39 996085247 FC JJ-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT LIQUfD OPER-P!MCO FEDERAL NATL MTG ASSN rnsc N MAT I J/02/2000 CREDIT SUISSE FIRST BOSTON C LIQUID OPER-PJMCO FEDERAL NATL MTG ASSN DISC N MAT 11/02/2000 CREDIT SUISSE FIRST BOSTON C LONG TERM OPER-PTMCO BELL ATLNTIC FINL DISC 1110112000 BANC ONE CAP MKTS INC, COLOM LONG TERM OPER·PIMCO BELL ATLNTlC FJNL orsc 11/0112000 BANC ONE CAP MKTS INC, COLUM LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT TRADE DATE/ SETTLDATEI COMPLDATE 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 04-Aug-2000 03-A11g-2000 04-Aug-2000 04-Aug-2000 I l-Aug-2000 l t-Aug-2000 l l-Aug-2000 1 l-Aug-2000 1 l-Aug-2000 PAGE: AMOUNT/ COST/ GAlN/LOSS ·7,010.41 0.00 0.00 -5,508,909.00 5,508,909.00 0.00 -5,508,909.00 0.00 0.00 -2,262,869.69 2,262,869.69 0.00 -2,262,869.69 0.00 0.00 -34,851 .39 34,851.39 0.00 -34,851.39 0.00 0.00 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT II PAGE: 4 PORTFOLIO DETAIL OCSGOOOJOOOO 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ll> TRANSACTION DESCRIPTION/ SETTLDATE/ COST! TRANS CODE BROKER COMPLDATE GAIN/LOSS 100,687.66 LONG TERM OPER-P IMCO bREvrus TREASURY CASH MGMT 14-Aug-2000 -100,687.66 996085247 14-Aug-2000 100,687.66 B 0.00 LONG TERM OPER-PIMCO 100,687.66 DREYFUS TREASURY CASH MGMT 14-Aug-2000 -I00,687.66 996085247 14-Aug-2000 0.00 FC 14-Aug-2000 0.00 LONG TERM OPER-PIMCO 34,184.17 BSDT-LATE MONEY DEPOSIT ACCT 14-Aug-2000 -34, 184.17 996087094 14-Aug-2000 34,184.17 ~ 0.00 LIQUID OPER-PIMCO 12,800.00 DREYFUS TREASURY CASH MGMT I S-Aug-2000 -12,800.00 996085247 l 5-Aug-2000 12,800.00 B 0.00 LIQUID OPER-PIMCO 12,800.00 DREYFUS TREASURY CASH MGMT I 5-Aug-2000 -12,800.00 996085247 I 5-Aug-2000 0.00 FC I 5-Aug-2000 0.00 LONG TERM OPER-PIMCO 291,394.96 DREYFUS TREASURY CASH MGMT l 5-Aug-2000 -291,394.96 996085247 l 5-Aug-2000 291,394.96 B 0.00 LONG TERM OPER-PIMCO 291,394.96 DREYFUS TREASURY CASH MGMT 15-Aug-2000 -291,394.96 996085247 15-Aug-2000 0.00 FC l 5-Aug-2000 0.00 JJ-Sep-2000 JJ :56;01 fuecutive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: ) PORTFOLIO DETAIL OCSGOOO I 0000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLJDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/ TRANS CODE BROKER COMPLDATE GAlNfLOSS LONG TERM" OPER-PIMCO 1,900,000.00 DU PONT DE NEMOUR DISC 15-Aug-2000 -1,861,175.09 26354AM68 12/06/2000 I 5-Aug-2000 1,861,175.09 B CREDIT SUISSE FrRSTBOSTON C 0.00 LONG TERM OPER-PIMCO 1,900,000.00 DU PONT DE NEMOUR DISC l 5-Aug-2000 -1,861,175.09 26354AM68 12/06/2000 I 5-Aug-2000 0.00 FC CREDIT SUlSSE FlRST BOSTON C I 5-Aug-2000 0.00 LONG TERM OPER-PIMCO' 59,017.38 BSDT-LATE MONEY DEPOSIT ACCT 16-Aug-2000 -59,017.38 996087094 16-Aug-2000 59,017.38 B 0.00 LONG TERM OPER-PIMCO 77,446.84 DREYFUS TREASURY CASH MGMT 17-Aug-2000 -77,446.84 996085247 I 7-Aug-2000 77,446.84 B 0.00 LONG TERM OPER-PIMCO 77,446.84 DREYFUS TREASURY CASH MGMT l 7-Aug-2000 -77,446.84 996085247 l 7-Aug-2000 0.00 FC 17-Aug-2000 0.00 LONG TERM OPER-PIMCO 238,908.60 DREYFUS TREASURY CASH MGMT 21-Aug-2000 -238,908.60 996085247 2 l-Aug-2000 238,908.60 B 0.00 LONG TERM OPER-PIMCO 238,908.60 DREYFUS TREASURY CASH MGMT 2 l -Aug-2000 -238,908.60 996085247 21-Au_g-2000 0.00 FC 21-Aug-2000 0.00 11-Sep-2000 11 J6:01 Executive Workbench OCSGOOO 10000 OCSD-CONSOLJDATED SHARES/PAR SECURITY ID TRANSCODE 9,795.00 996085247 B 9,795.00 996085247 FC 600,000.00 43851RLMO B 600,000.00 438SIRLMO FC 1,000,000.00 43851RLMO B 1,000,000.00 43851RLMO FC 85,168.28 996085247 B ll-Sep-2000 ll:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PlMCO HONEYWELL INTL DlSC 11121/2000 MERRlLLLYNCHPIBRCEFENNER LIQUID OPER-PIMCO HONEYWELL INTL DISC 11/21/2000 MERRILL LYNCH PIERCE FENNER LONG TERM OPER-PIMCO HONEYWELL JNTL DISC 1112112000 MERRILL LYNCH PIERCE FENNER LONG TERM OPER-PIMCO HONEYWELL INTL DISC 11/21/2000 MERRILL LYNCH PJERCE FENNER LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT TRADE DATE/ SETTLDATE/ COMPLDATE 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 24-Aug-2000 24-Aug-2000 PAGE: 6 AMOUNT/ COST/ GAIN/LOSS -9,795.00 9,795.00 0.00 -9,795.00 0.00 0.00 -590,205.00 590,205.00 0.00 -590,205.00 0.00 0.00 -983,675.00 983,675.00 0.00 -983,675.00 0.00 0.00 -85,168.28 85,168.28 0.00 E.Tec11Jive Wol'kbe11cfi OCSGOOO I 0000 OCSD-CONSOLJDATED SHARES/PAR SECURITY ID TRANSCODE 85,168.28 996085247 FC 3,300,000.00 313396K93 B 3,300,000.00 J13396K93 FC 24,101.07 996085247 B 24,101.07 996085247 FC 35,022.36 996085247 B 35,022.36 996085247 FC JJ-Sep-2000 11.56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL Ol-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PlMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PIMCO FEDERAL HOME LN MTG CORP DIS MAT I 0/1712000 CHASE SECURITIES, NEW YORK LONG TERM OPER-PlMCO' FEDERAL HOME LN MTG CORP DIS MAT I 011712000 CHASE SECURJTIES, NEW YORK LONG TERM OPER-PlMCO DREYFUS TREASURY CASH MGMT LONG TER1vt OPER-PIMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PlMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT TRADE DATE/ SETTLDATE/ COMPLDATE 24-Aug-2000 24-Aug-2000 24-Aug-2000 24-Aug-2000 24-Aug,-2000 24-Aug-2000 24-Aug-2000 24-Aug-2000 25-Aug-2000 25-Aug-2000 25-Aug-2000 25-Aug-2000 25-Aug-2000 28-Aug-2000 28-Aug-2000 28-Aug-2000 28-Aug-2000 28-Aug-2000 PAG~ ,, AMOUNT/ COST/ GAIN/LOSS -85,168.28 0.00 0.00 -3,268,320.00 3,268,320.00 0.00 -3,268,320.00 0.00 0.00 -24,101.07 24,101.07 0.00 -24,101.07 0.00 0.00 -35,022.36 35,022.36 0.00 -35,022.36 0.00 0.00 Executive Worlcbencfl @ ORANGE COUNTY SANITATION DISTRICT PAGE: 8 PORTFOLIO DETAIL OCSGOOOJOOOO 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARESJPAR TRADE DATE/ AMOUNT/ SECURITY JD TRANSACTION DESCRIPTION/ SETTLDATE/ COST! TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO 1,411.33 BSDT-LATE MONEY DEPOSIT ACCT 29-Aug-2000 -1,411.33 996087094 29-Aug-2000 1,411.33 B 0.00 LIQUID OPER-P!MCO 337,408.10 DREYFUS TREASURY CASH MGMT 30-Aug-2000 -337,408.1 0 996085247 30-Aug-2000 337,408.10 B 0.00 LIQUID OPER-PIMCO 337,408.10 DREYFUS TREASU RY CASH MGMT 30-Aug-2000 -337,408. I 0 996085247 30-Aug-2000 0.00 FC 30-Aug-2000 0.00 LONG TERM OPER-P!MCO 1,41 1.33 DREYFUS TREASURY CASH MGMT 30-Aug-2000 -1,411.33 996085247 30-Aug-2000 1,41 1.33 B 0.00 LONG TERM OPER-PIMCO 1,411.33 DREYFUS TREASURY CASH MGMT 30-Aug-2000 -1,411.33 996085247 30-Aug-2000 0.00 FC 30-Aug-2000 0.00 LONG TERM OPER-PIMCO 6,666.78 BSDT-LA TE MONEY DEPOSIT ACCT 30-Aug-2000 -6,666.78 996087094 30-Aug-2000 6,666.78 B 0.00 LONG TERM OPER-PlMCO 76,676, 14 DREYFUS TREASURY CASH MGMT 3'1-Aug-2000 -76,676.14 996085247 31-Aug-2000 76,676.14 B 0.00 11-Sep-2000 11:56:01 Exec111iva Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: PORTFOLIO DETAIL OCSGOOO 10000 Ol-AUG-2000 -31-AUG-2000 OCSD-CONSOL/DATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY rD TRANSACTlON DESCRTPTION/ SETTLDATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS 76,676. 14 tONG TERM OPbR.-PIMCO REYFUS TREASURY CASH MGMT 3 I -Aug-2000 -76,676.14 996085247 3 l-Aug-2000 0.00 FC 3 I -Aug-2000 0.00 LIQUID OPER-PlMCO 400,000.00 FEDERAL HOME LN MTG CORP DIS 3 I -Aug-2000 -396,631.67 313396K93 MAT I 0/17/2000 31-Aug-2000 396,63 1.67 B MORGAN J P SECS -FIXED !NCO 0.00 LIQUID OPER-PlMCO 400,000.00 FEDERAL HOME LN MTG CORP DlS 3 l-Aug-2000 -396,631.67 313396K93 MAT 10117/2000 3 J-A ug-2000 0.00 FC MORGAN 1 P SECS -FIXED !NCO 3 I -Aug-2000 0.00 LONG TERM OPER-PlMCO 32,600,000.00 GOLDMAN SACHS LP REPO 3 I -Aug-2000 -32,600,000.00 99372W648 06.400% 09/01/2000 DD 08/31/ 31-Aug-2000 32,600,000.00 B GOLDMAN SACHS & CO, NY 0.00 LONG TERM OPER-PTMCO 32,600,000.00 GOLDMAN SACHS LP REPO 31-Aug-2000 -32,600,000.00 99372W648 06.400% 09/01/2000 DD 08/31/ 3 l-Aug-2000 0.00 FC GOLDMAN SACHS & CO, NY 3 l-Aug-2000 0.00 FIXED INCOME SECURJTIES LONG TERM OPER-PIMCO -I 0,500,000.00 COMMIT TO PUR GNMA SF MTG I 3-Jul-2000 l 0,Ql 4,375.00 OIN062680 6.500% 08/15/2030 23-Aug-2000 -10,014,375.00 BC MERRJLL L YNC)-{ PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 11,000,000.00 COMMIT TO PUR GNMA SF MTG 13-Jul-2000 -10,487,812.50 OIN062680 6.500% 08/J 5/2030 23-Aug-2000 0.00 FC BEAR STEARNS & CO INC, NY 23-Aug-2000 0.00 l I-Sep-2000 J I -56:01 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: JO PORTFOLIO DETAIL OCSGOOO 10000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PJMCO 3,500,000.00 COMMIT TO PUR GNMA SF MTG 13-Jul-2000 -3,338, 125.00 OIN062680 6.500% 08/15/2030 23-Aug-2000 3,338,125.00 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 3,500,000.00 COMMIT TO PUR GNMA SF MTG 13-Jul-2000 -3,338, 125.00 OIN062680 6.500% 08/15/2030 23-Aug-2000 0.00 FC MERRJLL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PIMCO 49,269.15 GNMA POOL #0494299 13-Jul-2000 -46,990.45 J6210K.DC6 6.500% 01/15/2029 DD 01/01/ 23-Aug-2000 46,990.45 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 49,269. lS GNMA POOL #0494299 13-Jul-2000 -1 95.71 36210KDC6 6.500% 01/15/2029 DD OJ/OJ/ 23-Aug-2000 0.00 lB 0.00 LONG TERM UPER-PIMCO 49,269. I 5 GNMA POOL #0494299 I 3-Jul-2000 -47,186.16 36210KDC6 6.500%01/15/2029 DD 01/0J/ 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PJMCO 47,401.51 GNMA POOL #0496357 13-Jul-2000 -45,209.19 36210MME8 6.500% 06/15/2029 DD 061011 23-Aug-2000 45,209.19 B MERRJLLLYNCHPIERCEFENNER 0.00 LONG TERM OPER-PIMCO 47,401.51 GNMA POOL #0496357 13-Jul-2000 ' -188.29 36210MME8 6_500% 06/15/2029 DD 06/0J/ 23-Aug-2000 0.00 IB 0.00 11-Sep-2000 1/:56:01 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAG£: rr PORTFOLIO DETAIL OCSGOOO I 0000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOL!DATE.D SHARES/PAR TRADE DATE/ AMOUNT/ SECURlTY ID TRANSACTlON DESCRIPTIO N/ SETTLDATE/ COST! TRANSCODE BROKER COMPLDATE GAIN/LOSS 47,401.5 I tONG TERM OPER-PIMCO NMA POOL #0496357 13-Jul-2000 -45,397.48 362JOMME8 6.500% 06/15/2029 DD 061011 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PlMCO 49,493.99 GNMA POOL Ji.0504271 13-fol-2000 -47_204.89 36210WFL8 6.500% 04/15/2029 DD 0410 II 23-Aug-2000 47,204.89 B MERRILL LYNCH PIERCE PENNER 0.00 LONG TERM OPER-PIMCO 49,493.99 GNMA POOL #0504271 13-Jul-2000 ·1 96.60 36210WFL8 6.500%04/1512029 DD 04/01/ 23-Aug-2000 0.00 I.B 0.00 LONG TERM OPER-PIMCO 49,493 .99 GNMA POOL #0504271 l 3-Jul-2000 -47,401.49 36210WFL8 6.500% 04115/2029 DD 04/01/ 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-P!MCO 894,800.18 GNMA POOL #0509962 l 3-Jul-2000 -853,415.67 362 1 IDQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 853,415.67 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 894,800.18 GNMA POOL #0509962 13-Jul-2000 -3,5543 5 3621 JDQP8 6.500% 06/15/2029 DD 0610 I/ 23-Aug-2000 0.00 18 0,00 LONG TERM OPER-PIMCO 894,800.18 GNMA POOL #0509962 13-Jul-2000 -856,970.02 36211DQP8 6.500% 06115/2029 DD 061011 23-Aug-2000 0.00 PC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 11-SeyJ-2000 11:56:01 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT II PAGE: 12 PORTFOLIO DETAIL OCSGOOO I 0000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLTDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY JD TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BRO I< ER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO 52,039.95 GNMA POOL #0494779 13-Jul-2000 -49,633.10 36210KUC7 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 49,633.IO B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 52,039.95 GNMA POOL #0494 779 13-Jul-2000 -206.71 36210KUC7 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 IB 0.00 LONG TERM OPER-PIMCO 52,039.95 GNMA POOL #0494779 13-Jul-2000 -49,839.81 36210KUC7 6.500% 06/15/2029 DD 061011 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PlMCO 48,662.82 GNMA POOL #0497543 13-Jul-2000 -46,412.16 36210NWC9 6.500%01/15/2029 DD 01/01/ 23-Aug-2000 46,412.16 B MERRILL LYNCH PIERCE FENNER 0.00 LONU TERM OPER-f'IMCU 48,662.82 GNMA POOL #0497543 I 3-Jul-2000 -193.30 362JONWC9 6.500% 01/15/2029 DD 01/01/ 23-Aug-2000 0.00 TB 0.00 LONG TERM OPER-PIMCO 48,662.82 GNMA POOL #0497543 13-Jul-2000 -46,605.46 36210NWC9 6.500% 0 Ill 5/2029DD 01/01/ 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PIMCO 55,687.91 GNMA POOL #0509362 I 3-Jul-2000 -53,112.34 3621 ICZ39 6.500% 07/15/2029 DD 07/01/ 23-Aug-2000 53,1 12.34 B MERRILL LYNCH PIERCE FENNER 0.00 JJ-Sep-2000 11:56:01 Execulfve Workbench OCSGOOOJ 0000 OCSD-CONSOLIDATED SHARES/PAR SECURJTV ID TRANSCODE 55,687.91 3621 ICZ39 18 55,687.91 3621 !CZ39 FC 895,881.48 3621 IDQP8 B 895,881.48 3621 IDQP8 rs 895,881.48 3621 IDQP8 PC 48,530.05 36209LKT2 B 48,530.05 36209LKT2 IB JJ,Sep-2000 11 :56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTJON DESCRIPTION/ BROKER LONG TERM OPER-PJMCO GNMA POOL #0509362 6.500% 07/J 5/2029 DD 07/01/ LONG TERM OPER-PIMCO GNMA POOL #05093<52 6.500% 07/15/2029 DD 07/01 / MERRILL LYNCH PIERCE FENNER LONG TERM OPER-PIMCO GNMA POOL #0509962 6.500% 06/15/2029 DD 0610 If MERRILL LYNCH PIERCE FENNER LONG TERM OPER-PlMCO GNMA POOL #0509962 6.500% 0611512029 DD 06/0l/ LONG TERM OPER-PIMCO GNMA POOL #0509962 6.500% 06/15/2029 DD 06/0l/ MERRILL LYNCH PIERCE FENNER LONG TERM OPER-P!MCO GNMA POOL #0474706 6.500% 03 /1512029 DD 0310 II MERRILL LYNCH PIERCE FENNER LONG TERM OPER-PIMCO C1NMA POOL #0474706 6.500% 03/15/2029 DD 03/01/ TRADE DATE/ SETTLDATE/ COMPLDATE l 3-Jul-2000 23-Aug-2000 13-Jul-2000 23-Aug-2000 23-Aug-2000 I 3-Jul-2000 23-Aug-2000 13-Jul-2000 23-Aug-2000 I 3-Jul-2000 23-Aug-2000 23-Aug-2000 13-Jul-2000 23-Aug-2000 I 3-Jul-2000 23-Aug-2000 PAGE: 1'3 AMOUNT/ COST/ GAIN/LOSS -221.20 0.00 0.00 -53,333.54 0.00 0.00 -854,446.96 854,446.96 0.00 ·3,558.64 0.00 0.00 -858,005.60 0.00 0.00 -46,285.54 46,285.54 0.00 -192.77 0.00 0.00 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT ll PAGE: 14 PORTFOLIO DETAIL OCSGOOOJ 0000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLJDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRA NSACTION DESCRIPTION/ SETTLDATE/ COST/ TRANS CODE BROKER COMPLDATE GAlN/LOSS LONG TERM OPER-PIMCO 48,530.05 GNMA POOL #0474706 13-JuJ-2000 -46,478.31 36209LKT2 6.500% 03/15/2029 DD 03/01/ 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PtMCO 1,000,099.24 GNMA POOL #0509962 J 3-Jol-2000 -953,844.65 3621 IDQP8 6.500% 06/J 5/2029 DD 0610 I/ 23-Aug-2000 953,844.65 B MERRJLL LYNCH PTERCE FENNER 0.00 LONG TERM OPER-PIMCO 1,000,099.24 GNMA POOL #0509962 13-Jlll-2000 -3,972.62 362! IDQP8 6.500% 0611512029 DD 06/01/ 23-Aug-2000 0.00 m 0.00 LONG TERM OPER-PIMCO 1,000,099.24 GNMA POOL #0509962 13-Jul-2000 -957,817.27 362llDQPS 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PJMCO 1,000,099.24 GNMA POOL #0509962 L3-Juf-2000 -953,844.65 3621 JDQP8 6.500% 06/15/2029 DD 061011 23-Aug-2000 953,844.65 B MERRJLL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PJMCO 1,000,099.24 GNMA POOL #0509962 13-Jul-2000 -3,972.62 3621 lDQPS 6.500% 06/15/2029 DD 061011 23-Aug-2000 0.00 1B 0.00 LONG TERM OPER-PIMCO 1,000,099.24 GNMA POOL #0509962 13-Jul-2000 -957,817.27 36211DQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 PC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 11-Sep-2000 11 :56:01 E-<ecurive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 15 PORTFOLIO DETAIL OCSGOOO I 0000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOL!DATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/ TRANSCODE BROKER COMPLDATE GAlN/LOSS LONG TERM OPER-PTMCO l,000,099.24 GNMA POOL #0509962 13-Jul-2000 -953,844.65 36211DQP8 6.500% 06115/2029 DD 061011 23-Aug-2000 953,844.65 B MERRILL LYNCH PJERCE FENNER 0.00 LONG TERM OPER-PJMCO 1,000,099.24 GNMA POOL #0509962 13-Jul-2000 -3,972.62 362l IDQP8 6.500% 06115/2029 DD 0610 II 23-Aug-2-000 0.00 IB 0.00 LONG TERM OPER-PlMCO 1,000,099.24 GNMA POOL #0509962 I 3-Jul-2000 -957,817.27 3621 IDQPS 6..500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 FC MERRJLL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PrMCO 57,897.80 GNMA POOL #0510702 J 3-Jul-2000 -55,220.03 3621 IEKP2 6.500% 11/15/2029 DD 11/01/ 23-Aug-2000 55,220.03 B MERRILL LYNCH PIERCE PENNER 0.00 LONG TERM OPER-PIMCO 57,897.80 GNMA POOL #0510702 13-Jul-2000 -229.98 36211EKP2 6.500% 11/1512029 DD 11/01/ 23-Aug-2000 0.00 IB 0.00 LONG TERM OPER-PIMCO 57,897.80 GNMA POOL #0510702 13-Jul-2000 -55,450.0J 36211EKP2 6.500% 11115/2029 DD ll/01/ 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PlMCO 899,396.88 GNMA POOL #0509962 13-Jul-2000 -857, 799. 77 3621 IDQP8 6.500% 06/15/2029 DD 061011 23-Aug-2000 857,799.77 B MERRILL LYNCH PJERCE FENNER 0.00 Jl-Sep-2000 11:56.01 Exec11tive Workbench @ ORANGE COUNTY SANITATION DISTRICT 11 PAGE: 16 PORTFOLIO DETAIL OCSGOOO 10000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRI PTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO 899,396.88 GNMA POOL #0509962 13-Jul-2000 -3,572.60 362 1 IDQP8 6.500% 06/15/2029 DD 061011 23-Aug-2000 0.00 IB 0.00 LONG TERM OPER-PIMCO 899,396.88 GNMA POOL #0509962 I 3-Jul-2000 -861,372.37 3621 IDQP8 6.500% 06/15/2029 DD 0610 II 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PIMCO 901,336.06 GNMA POOL #0509962 13-Jul-2000 -859,649.27 3621 IDQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 859,649.27 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 901,336.06 GNMA POOL #0509962 13-Jul-2000 -3,580.31 3621 lDQP8 6.500% 06/ 15/2029 DD 0610 I I 23-Aug-2000 0.00 lB 0.00 LONG TERM OPER-PlMCO 901,336.06 GNMA POOL #0509962 13-Jul-2000 -863,229.58 3621 IDQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 FC MERRJLL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PIMCO 6,250,000.00 COMMIT TO PUR ONMA SF MTG l 4-Jul-2000 -5, 753,906.25 OIN060684 6.00% 8/15/2030 23-Aug-2000 0.00 FC GOLDMAN SACHS & CO. NY 23-Aug-2000 0.00 LONG TERM OPER-PIMCO 2,000,000.00 COMMlT TO PUR GNMA SF MTG I 7-Jul-2000 -2,01 1,250.00 OIN080682 8.00% 08/15/2030 23-Aug-2000 0.00 FC BEAR STEARNS & CO INC, NY 23-Aug-2000 0.00 fl-Sep-2000 11:56:01 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PA Gt: l'l PORTFOLIO DETAIL OCSGOOO 10000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLJDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/ TRANSCODE BROKER COMPLDATE GAJN/WSS LONG TERM OPER-PlMCO 3,500,000.00 COMMIT TO PUR ONMA SF MTG I 5-Aug-2000 -3,355,625.00 OIN062698 6.500% 091151202.9 21-Sep-2000 3,355,625.00 B MERRJLL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PTMCO 6,250,000.00 COMMIT TO PUR GNMA SF MTG 15-Aug-2000 -S,835,937.50 01N060692 6.00% 9/15/2029 2 l-Sep-2000 5,83 5,937.50 B GOLDMAN SACHS & CO, NY 0.00 LONG TERM OPER-PIMCO 11.000,000.00 COMMIT TO PUR GNMA SF MTG 15-Aug-2000 -10,546,250.00 01N062698 6.500% 09/15/2029 2 l-Sep-2000 I 0,546,250.00 B BEAR STEARNS & CO fNC. NY 0.00 LONG TERM OPER-PIMCO 2,000,000.00 COMMIT TO PUR GNMA SF MTG 16-Aug-2000 -2,025,000.00 01N080690 8.000% 09/01/2030 21-Sep-2000 2,025,000.00 B BEAR STEARNS & CO INC, NY 0.00 LONG TERM OPER-PIMCO 6,900,000.00 US TREASURY NOTES 23-Aug-2000 -6, 936,386. 72 9128275N8 06.000% 08/15/2009 DD 08/15/ 24-Aug-2000 6,936,386.72 B GREENWICH CAP MKTS fNC. GREE 0.00 LONG TERM OPER-PJMCO 6,900,000.00 U S TREASURY NOTES 23-Aug-2000 -10,125.00 9128275N8 06.000% 08/15/2009 DD 08/15/ 24-Aug-2000 0.00 lB 0.00 LONG TERM OPER-PIMCO 6,900,000.00 US TREASURY NOTES 23-Aug-2000 -6,946,511.72 9128275N8 06.000% 08/15/2009 DD 08/15/ 24-Aug-2000 0.00 FC GREENWICH CAP MKTS fNC, GREE 24-Aug-2000 0,00 JJ-Sep-2000 11:56:01 Executive Work.bench @ ORANGE COUNTY SANITATION DISTRICT II PAGE: 18 PORTFOLIO DETAIL OCSGOOOJ 0000 Ol-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY JD TRANSACTION DESCRIPTION/ SETTLDATE/ COST/ TRANSCODE BROKER COMPL DATE GAIN/LOSS LIQUID OPER-PJMCO 250,000.00 CHASE MANHATTAN CORP NEW SUB 25-Aug-2000 -254,730.00 16161A.BLI 9.375% 07/0 1/2001 DD 07/0 1/8 30-Aug-2000 254,730.00 B CHASE SECURITIES, NEW YORK 0.00 LIQUID OPER-PIMCO 250,000.00 CHASE MANHATTAN CORP NEW SUB 25-Aug-2000 -3,841.15 16161A.BLI 9.375% 07/01/2001 DD 07/0J/8 30-Aug-2000 0.00 lB 0.00 LIQUID OPER-PIMCO 250,000.00 CHASE MANHATTAN CORP NEW SUB 25-Aug-2000 -258,571.1 5 16161A.BLJ 9.375%07/01/200 1 DD07/01/8 30-Aug-2000 0.00 re CHASE SECURITIES, NEW YORK 30-Aug-2000 0.00 UQUID OPER-PIMCO 500,000.00 BANPONCE FINL CORP MTN #0008 25-Aug-2000 -496,495.00 06670QDJ4 6.750% 08/09/2001DD0810919 30-Aug-2000 496,495.00 B LEHMAN GOVT SECS INC, NY 0.00 LIQUID OPER-PIMCO 500,000.00 BANPONCE FINL CORP MTN #0008 25-Aug-2000 -7,03 1.25 06670QD.14 6. 750% 08/09/200 I DD 08/09/9 30-Aug-2000 0.00 lB 0.00 LIQUJD OPER-PIMCO 500,000.00 BANPONCE FINL CORP MTN #0008 25-Aug-2000 -503,52625 06670QD.T4 6.750% 08/09/2001 DD 0810919 30-Aug-2000 0.00 FC LEHMAN GOVT SECS INC, NY 30-Aug-2000 0.00 LONG TERM OPER-PIMCO 6,900,000.00 US TREASURY NOTES 28-Aug-2000 -6,920,484.38 9128275N8 06.000% 0811512009 DD 08/15/ 29-Aug-2000 6,920,484.38 B CHASE SECURITIES, NEW YORK 0.00 ll-Sep-2000 11 :56:01 Executive Workbench OCSGOOO I 0000 OCSD-CONSOL/DATED PAY UPS SHARES/PAR SECURfTY ID TRANSCODE 6,900,000.00 9!28275N8 18 6.900,000.00 9 l28275N8 FC I 2,000,000.00 OJN080690 B 12,000.000.00 OIN080690 B FIXED INCOME SECURITIES 140,990.00 9128272M3 PU 140,990.00 9128272M3 PC JJ-Sep-2000 J/:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PIMCO US TREASURY NOTES 06.000% 08/15/2009 DD 08/15/ LONG TERM OPER-PIMCO US TREASURY NOTES 06.000%08/15/2009 DD 08/15/ CHASE SECURITIES, NEW YORK LONG TERM OPER-PIMCO COMMIT TO PUR GNMA SF MTG 8.000% 0911512030 SALOMON BROS INC, NEW YORK LONG TERM OPER-PlMCO COMMIT TO PUR GNMA SF MTG 8.000% 09/1512030 SALOMON BROS INC, NEW YORK LONG TERM OPER-PlMCO US TREASURY INFLATION INDEX 3.375% 0 1/15/2007 DD 01/15/ LONG TERM OPER-PIMCO US TREASURY INFLATION CNDEX 3.375% 01 /15/2007 DD 01 /15/ TRADE DATE/ SEITLDATE/ COMPLDATE 28-Aug-2000 29-Aug-2000 28-Aug-2000 29-Aug-2000 29-Aug-2000 3 l-Aug-2000 2 1-Sep-2000 31-Aug-2000 21-Sep-2000 I 5-Jul-2000 15-Jul-2000 l 5-Jul-2000 15-Jul-2000 3 l-Aug-2000 PAGE: 1'9 AMOUNT/ COST/ GAIN/LOSS -15,750.00 0.00 0.00 -6,936,234.38 0.00 0.00 -12, 166,875.00 12,166,875.00 0.00 -12,166,875.00 12, 166,875.00 0.00 -140,990.00 140,990.00 0.00 -140,990.00 0.00 0.00 Executive Workbench OCSGOOO 10000 OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE 49,692.00 9128273A8 PU 49,692.00 9128273A8 FC 14.00 3133TCE95 PU 14.00 3 l33TCE95 FC 12,295.3 1 3133Tl7A4 PU 12,295.31 3133Tl 7A4 FC 10,587.60 79549BBG J PU 1 l-Sep-2000 1 I :56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PIMCO US TREASURY JN FLA TION lNDEX 3.625% 07/15/2002 DD 071151 LONG TERM OPER-PIMCO US TREASURY INFLATION INDEX 3.625% 07/15/2002 DD 071151 LONG TERM OPER-PIMCO FHLMC MUL Tl CLASS CTF E3 A VAR RT 08/15/2032 LONG TERM OPER-PTMCO FHLMC MULTICLASS CTF E3 A VAR RT 08/15/2032 LONG TERM OPER-PIMCO FHLMC MUL TTCLASS CTF SER 162 6.000% 11/15/2023 DD 11/0 1/9 LONG TERM OPER-PJMCO PHLMC MULTICLASS CTF SER 162 6.000% 11/15/2023 DD 11/01/9 LONG TERM OPER-PJMCO SALOMON SMITH BARNEY HLDGS I 3.650% 02114/2002 DD 02/14/ TRADE DATE/ SETTLDATE/ COMPLDATE l 5-Jul-2000 I 5-Jul-2000 I 5-Jul-2000 I 5-Jul-2000 31-Aug-2000 OJ-Aug-2000 01-Aug-2000 01-Aug-2000 0 l-Aug-2000 15-Aug-2000 0 l-Aug-2000 Ol -Aug-2000 Ol-Aug-2000 Ol-Aug-2000 l 6-Aug-2000 14-Aug-2000 l 4-Aug-2000 PAGE: 20 AMOUNT/ COST/ GAIN/LOSS -49,692.00 49,692.00 0.00 -49,692.00 0.00 0.00 -14.00 14.00 0.00 -l4.00 0.00 0.00 -12,295.3 1 12,295.3 1 0.00 -12,295.31 0.00 0.00 -10,587.60 10,587.60 0.00 Executive Workbench OCSGOOO 10000 OCSD-CONSOLIDATED SALES SilARES/P AR SECURITY ID 'TRANS CODE 10,587.60 79549BBGI FC CASH & CASH EQUIVALENTS -311.11 996085247 s -311.11 996085247 F'C -1,400,000.00 313588846 s -1,400,000.00 313588846 IS -1,400,000.00 J 13588846 FC J J-Sep-2000 I 1:56:01 ll ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PlMCO SALOMON SMITH BARNEY HLDGS I 3.650% 02114/2002 DD 02114/ LIQUID OPER-PfMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PIMCO FEDERAL NATL MTG ASSN DISC N MAT 08/09/2000 HSBC SECS INC, NEW YORK LIQUID OPER-PIMCO FEDERAL NATL MTG ASSN DISC N MAT 0810912000 LIQUID OPER-PIMCO FEDERAL NATL MTG ASSN DISC N MAT 08/09/2000 HSBC SECS INC, NEW YORK TRADE DATE/ SETTLDATE/ COMPLDATE 14-Aug-2000 14-Aug-2000 3 l-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 PAGE: AMOUNT/ COST/ GAIN/LOSS -10,587.60 0.00 0.00 311.11 -31 Lll 0.00 31 l.1 l 0.00 0.00 1,386,246.94 -1,386,246.94 0.00 12,255.06 0.00 0.00 1,398,502.00 0.00 0.00 Executive Workbench OCSGOOO I 0000 OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE -2.55 996085247 s -2.55 996085247 FC -25,964.98 996085247 s -25,964.98 996085247 FC -34,184.17 996087094 s -59,017.38 996087094 s -8:57,000.18 996085247 s 1 l-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRlPTlON/ BROKER LIQUID OPER-PfMCO ~REYRJS TREASURY CASH MGMT LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PTMCO DREYFUS TREASURY CASB MGMT LONG TERM OPER-PfMCO BSDT-LATE MONEY DEPOSIT ACCT LONG TERM OPER-PlMCO BSDT-LATEMONEY DEPOSIT ACCT LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT TRADE DATE/ SETTLDATE/ COMPLDATE 04-Aug-2000 04-Aug--2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 l 5-Aug-2000 15-Aug-2000 J 7-Aug-2000 l 7-Aug-2000 23-Aug-2000 23-Aug-2000 PAGE: 21 AMOUNT/ COST/ GAIN/LOSS 2.55 -2.55 0.00 2.55 0.00 0.00 25,964.98 -25,964.98 0.00 25,964.98 0.00 0.00 34,184.17 -34,1 84.1 7 0.00 59,017.38 -59,017.38 0.00 857,000.18 -857,000.18 0.00 Executive Workbench OCSGOOOJOOOO OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE -857,000.18 996085247 FC -l 55,637.05 996085247 s -155,637.05 996085247 FC -6,800,000.00 313396F81 s -6,800,000.00 313396F81 IS -6,800,000.00 3!3396F81 PC -1 ,41 1.33 996087094 s 1 J-Sep-2000 1 I :56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-P!MCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PIMCO FEDERAL HOME LN MTG CORP DIS MAT 09/14/2000 MORGAN JP SECS-FIXED JNCO LONG TERM OPER-PIMCO FEDERAL HOME LN MTG CORP DIS MAT 09/14/2000 LONG TERM OPER-PJMCO FEDERAL HOME LN MTG CORP DIS MAT 09/14/2000 MORGAN J P SECS -FIXED INCO LONG TERM OPER-PIMCO BSDT-LATE MONEY DEPOSIT ACCT TRADEUATE/ SETTL DATE/ COMPLDATE 23-Aug-2000 23-Aug-2000 23-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 30-Aug-2000 30-Aug-2000 PAGE: AMOUNT/ COST/ GAIN/LOSS 857,000.18 0.00 0.00 155,637.05 -155,637.05 0.00 155,637.05 0.00 0.00 6,702,775.13 -6, 702, 775.13 0.00 77,822.20 0.00 0.00 6,780,597.33 0.00 0.00 1,411.33 -1,411.33 0.00 Executive Workbench OCSG000/0000 OCSD-CONSOL!DATED SHARES/PAR SECURITY ID TRANSCODE -400,000.00 3 13396F81 s -400,000.00 313396F81 IS -400,000.00 313396F81 FC -300,000.00 313384F20 s -300,000.00 313384F20 rs -300,000.00 313384F20 fC -6,666.78 996087094 s Jl-Sep-2000 Jl:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRJPTION/ BROKER I LIQUID OPER-PJMCO FEDERAL HOME LN MTG CORP DIS MAT 0911412000 GOLDMAN SACHS & CO, NY LIQUID OPER-PIMCO FBDERAL HOME LN MTG CORP DIS MAT 09/ l 4/2000 LlQUlD Ol'ER-PlMCO FEDERAL HOME LN MTG CORP DJS MAT 09/14/2000 GOLDMAN SACHS & CO, NY UQUID OPBR-PIMCO FEDERAL HOME LN BK CONS DISC MAT 09108/2000 HSBC SECS INC, NEW YORK LIQUID OPER-PIMCO FEDERAL HOME LN BK CONS DISC MAT 09/08/2000 LIQUID OPER-PIMCO FEDERAL HOME LN BK CONS DISC MAT 09/08/2000 HSBC SECS INC, NEW YORK LONG TERM OPER-PIMCO BSDT-LATE MONEY DEPOSIT ACCT TRADE DATE/ SETTL DATE/ COMPLDATE 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug·2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 3 l-Aug-2000 3 l-Aug-2000 II PAGE.-24 AMOUNT/ COST/ GAIN/LOSS 393,827. l I -393,827.1 1 0.00 5,096.22 0.00 0.00 398,923.33 0.00 0.00 295,485.00 -295,485.00 0.00 4,030.50 0.00 0.00 299,515.50 0.00 0.00 6,666.78 ·6,666.78 0.00 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 2'J PORTFOLIO DETAIL OCSGOOO 10000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRAN SA CTI ON D ESCRJPTION/ SETTL, DATE/ COST/ TRANSCODE BROKER COMPL DATE GAJN/LOSS LIQUID OPER-PIMCO -396,631.67 DREYFUS TREASURY CASH MGMT 31 -Aug-2000 396,631.67 996085247 3 I-Aug-2000 -396,631.67 s 0.00 UQUID OPER-PIMCO -396,631.67 DREYFUS TREASURY CASH MGMT 3 l -Aug-2000 396,631 .67 996085247 3 J-Aug-2000 0.00 FC 3 l-Aug-2000 0.00 FIXED INCOME SECURITIES LONG TERM OPER-PIMCO 7,000,000.00 COMMIT TO PUR GNMA SF MTG 28-Jul-2000 -6,627,03 1.25 01N062680 6.500% 08115/2030 23-Aug.-2000 6,675,130.81 SC PJRST UNION CAP MKTS, NEW YO 48,099.56 LONG TERM OPER-PIMCO -55,687.91 GNMA POOL #0509362 28-Jul-2000 52,720.79 3621 ICZ39 6.500% 07115/2029 DD 07/01/ 23-Aug-2000 -53,11 2.34 s FIRST UNION CAP MKTS. NEW YO -391.55 LONG TERM OPER-PIMCO -55,687.9 l GNMA POOL #0509362 28-Jul-2000 221.20 362l ICZ39 6.500% 07/15/2029 DD 07/01/ 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PlMCO -55,687.91 GNMA POOL #0509362 28-Jul-2000 52,941.99 36211CZ39 6.500% 07/15/2029 DD 07/01/ 23-Aug-2000 0.00 FC FIRST UNION CAP MK.TS, NEW YO 23-Aug-2000 0.00 LONG TERM OPER-PIMCO -894,800.18 GNMA POOL #0509962 28-Jul-2000 847,124.ll 3621 1DQP8 6.500% 06/15/2029 DD 061011 23-Aug-2000 -853,415.67 s FffiST UNION CAP MI<TS, NEW YO -6,291.56 JJ-Sep-2000 11:56:01 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 26 PORTFOLIO DETAIL OCSGOOO 10000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOL!DATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY JD TRANSACTION DESCRIPTION/ SETTLDATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO -894,800.18 GNMA POOL #0509962 28-Jul-2000 3,554.35 36211DQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PTMCO -894,800.18 GNMA POOL #0509962 28-Jul-2000 850,678.46 3621 IDQPS 6.500% 06/JS/2029 DD 06/01/ 23-Aug-2000 0.00 FC FIRST UNION CAP MKTS. NEW YO 23-Aug-2000 0.00 LONG TERM OPER-PIMCO -895,881.48 GNMA POOL #0509962 28-Jul-2000 848,147.79 36211DQP8 6.500% 06115/2029 DD 061011 23-Aug-2000 -854,446.96 s FTRST UNION CAP MKTS. NEW YO -6,299.17 LONG TERM OPER-PIMCO -895,881.48 GNMA POOL 110509962 28-Jul-2000 3,558.64 3621 lDQP8 6.500% 0611512029 DD 06/01/ 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PIMCO -895,881.48 ONMA POOL #0509962 28-Jul-2000 851 ,706.43 3621 IDQP8 6.500% 06115/2029 DD 06/01/ 23-Aug-2000 0.00 PC FIRST UNION CAP MKTS, NEW YO 23-Aug-2000 0.00 LONG TERM: OPER-PlMCO -899,396.88 GNMA POOL #0509962 28-Jul-2000 851,475.89 36211DQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 -857,799.77 s FIRST UNfON CAP MK.TS. NEW YO -6,323.88 LONG TERM OPER-PIMCO -899,396.88 GNMA POOL #0509962 28-Jul-2000 3,572.60 36211DQPS 6.500% 06/15/2029 DD 0610 II 23-Aug-2000 0.00 IS 0.00 l/-Sep-2000 !f.-56·0/ Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PA Gt: 27 PORTFOLIO DETAIL OCSGOOO I 0000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETILDATE/ COST/ TRANSCODE BROKER COMPLDATE GA: IN/LOSS LONG TERM OPER-PIMCO -899,396.88 GNMA POOL #0509962 28-Jul-2000 855,048.49 3621 IDQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 FC FIRST UNION CAP MKTS. NEW YO 23-Aug-2000 0.00 LONG TERM OPER-PlMCO -901,336.06 GNMA POOL 110509962 28-Jul-2000 853,311.75 3621 IDQP8 6.500% 06/15/2029 DD 061011 23-Aug-2000 -859,649.27 s FfRST UNION CAP MKTS. NEW YO -6.337.52 LONG TERM OPER-PIMCO· -901,336.06 GNMA POOL #0509962 28-Jul-2000 3,580.3) 362l 1DQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PIMCO -901 ,336.06 GNMA POOL #0509962 28-Jul-2000 856,892.06 3621 IDQP& 6.500% 06/15/2029 OD 061011 23-Aug-2000 0.00 FC FTRST UNION CAP MKTS. NEW YO 23-Aug-2000 0.00 LONG TERM OPBR-PIMCO -1,000,099.24 GNMA POOL #0509962 28-Jul-2000 946,812.70 36211DQP8 6.500% 0611512029 DD 06/01/ 23-Aug-2000 -953,844.65 s FIRST UNION CAP MKTS, NEW YO -7,031.95 LONG TERM OPER-P!MCO · 1,000,099.24 GNMA POOL #0509962 28-Jul-2000 3,972.62 3621JDQP8 6.500% 06/15/2029 DD 061011 23-Aug-2000 0.00 IS 0,00 LONG TERM OPER-PTMCO -l,000,099.24 GNMA POOL #0509962 28-J1..11-2000 950,785.32 362J IDQP8 6.500% 06/15/2029 DD 061011 23-Aug-2000 0.00 PC FIRST UNION CAP MI<TS, NEW YO 23-Aug-2000 0.00 11-Sep-2000 l/:56:01 Executive Workbench @ II ORANGE COUNTY SANITATION DISTRICT PAGE: 28 PORTFOLIO DETAIL OCSGOOOJ 0000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLJDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PTMCO -1,000,099.24 GNMA POOL #0509962 28-Jul-2000 946,812.70 3621 1DQP8 6.500% 06/15/2029 DD 061011 23-Aug-2000 -953,844.65 s FIRST UNION CAP MJ<TS. NEW YO -7,031.95 LONG TERM OPER·PIMCO -1,000,099.24 GNMA POOL #0509962 28-Jul -2000 3,972.62 3621 IOQP8 6.500% 06/l 5/2029 DD 0610 If 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PIMCO • l,000,099.24 GNMA POOL #0509962 28-Jul-2000 950,785.32 3621 IDQP8 6.500% 06/15/2029 DD 06/0l/ 23-Aug-2000 0.00 FC FIRST UNION CAP MKTS, NEW YO 23-Aug-2000 0.00 LONG TERM OPER-PIMCO -1,000,099.24 GNMA POOL #0509962 28-Jul-2000 946,812.70 3621 IDQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 -953,844.65 s FIRST UNlON CAP MKTS. NEW YO -7,031.95 LONG TERM OPER-PIMCO -1 ,000,099.24 GNMA POOL #0509962 28-J ul-2000 3,972.62 36211DQP8 6.500% 0611512029 DD 06/01/ 23-Aug-2000 0.00 TS 0.00 LONG TERM OPER-PIMCO -1,000,099.24 GNMA POOL #0509962 28-Jul-2000 950,785.32 3621 IDQP8 6.500% 06/15/2029 DD 0610 1/ 23-Aug-2000 0.00 FC FlRST UNION CAP MI<TS. NEW YO 23-Aug-2000 0.00 LONG TERM OPER-PlMCO -57,897.80 GNMA POOL #0510702 28-Jul-2000 54,812.93 3621 IEKP2 6.500% 11/15/2029 DD I l/01/ 23-Aug-2000 -55,220.03 s FTRST UNION CAP MKTS. NEW YO -407.10 /J -Sep-2000 11.56:01 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGJ!.: 29 PORTFOLIO DETAIL OCSGOOO 10000 01 -AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID T RANSACTION DESCRIPTION/ SETTLDATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS -57,897-80 ~ONG TERM OPER-PIMCO NMA POOL#05 10702 28-Jul-2000 229.98 362118KP2 6.500% 11/15/2029 DD I I/OJ/ 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PIMCO -57,897.80 GNMA POOL #0510702 28-Jul-2000 :55,042.91 36211EKP2 6.500% l 1/15/2029 DD 11/01/ 23-Aug-2000 0.00 FC FlRST UNION CAP MK.TS. NEW YO 23-Aug-2000 0.00 LONG TERM OPER-PIMCO -48,530.05 GNMA POOL #0474706 28-.lul-20QO 45,944.31 36209LKT2 6.500% 03/15/2029 DD 03/01/ 23-Aug-2000 -46,285.54 s FIRST UN ION CAP MKTS. NEW YO -341.23 LONG TERM OPER-PIMCO -48,530.05 GNMA POOL #0474706 28-Jul-2000 192.77 36209LKT2 6.500% 03/15/2029 DD 03/01/ 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PIMCO -48,530.05 GNMA POOL #0474706 28-Jul-2000 46,137.08 36209LKT2 6.500% 03/15/2029 DD 03/01/ 23-Aug-2000 0.00 PC FIRST UNION CAP MK.TS. NEW YO 25-Aug-2000 0.00 LONG TERM OPER-PJMCO -49,269.15 GNMA POOL #0494299 28-Jul-2000 46,644.03 36210KDC6 6.500% 01/15/2029 DD 01/01/ 23-Aug-2000 ·46,990.45 s FIRST UNION CAP MKTS. NEW YO -346.42 LONG TERM OPER-PIMCO -49,269.1 5 GNMA POOL #0494299 28-Jul-2000 195.71 36210KDC6 6.500% 01/15/2029 DD 01101/ 23-Aug-2000 0.00 IS 0.00 ll-Sep-2000 JJ :56:01 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 30 PORTFOLIO DETAIL OCSGOOOJOOOO 01 -AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TJlANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO -49,269.15 GNMA POOL #0494299 28-Jul-2000 46,839.74 362JOKDC6 6.500% 0111512029 DD 01/01/ 23-Aug-2000 0.00 FC FIRST UNION CAP MKTS. NEW YO 25-Aug-2000 0.00 LONG TERM OPER-PIMCO -52,039.95 GNMA POOL #0494 779 28-Jul-2000 49,267.20 36210KUC7 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 -49,633.10 s FIRST UNION CAP MKTS. NEW YO -365.90 LONG TERM OPER-PIMCO -52,039.95 GNMA POOL #0494779 28-Jul-2000 206.71 36210KUC7 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 o.oo IS 0.00 LONG TERM OPER-PIMCO -52,039.95 GNMA POOL #0494779 28-Jul-2000 49,473.91 36210KUC7 6.500% 06/J 512029 DD 06/01/ 23-Aug-2000 0.00 FC FIRST UNION CAP MK.TS, NEW YO 25-Aug-2000 0.00 LONG TERM OPER-PIMCO -47,401.5 J GNMA POOL #0496357 28-JuJ-2000 44,875.90 36210MME8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 -45,209.19 s FIRST UNION CAP MKTS. NEW YO -333.29 LONG TERM OPER-PIMCO -47,40l.51 GNMA POOL #0496357 28-Jul-2000 188.29 36210MME8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PIMCO -47,401.5 1 GNMA POOL #0496357 28-Jul-2000 45,064.19 36210MME8 6.500% 06/15/2029 DD 061011 23-Aug-2000 0.00 FC FIRST UNION CAP MKTS, NEW YO 25-Aug-2000 0.00 Jl-Sep-2000 11:56:01 &ecutive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 31 PORTFOLIO DETAIL OCSGOOO 10000 Ol-AUG-2000 -31-AUG-2000 OCSD-CONSOLJDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURJTY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS -48,662.82 ~NG TERM OPER-PIMCO MA POOL #0497543 28-Jul-2000 46,070.00 36210NWC9 6.500% Ol/15/2029 DD 01/01/ 23-Aug-2000 -46,412.1 6 s FIRST UNION CAP MK.TS. NEW YO -342.16 LONG TERM OPER-PlMCO -48,662.82 GNMA POOL #0497543 28-Jul-2000 193.30 36210NWC9 6.500% 01/15/2029 DD 01/01/ 23-Aug-2000 0.00 lS 0.00 LONG TE;RM OPER-PIMCO -48,662.82 GNMA POOL #0497543 28-Jul-2000 46,263.30 36210NWC9 6.500% 01/15/2029 DD 01/01/ 23-Aug-2000 0.00 FC FIRST VNION CAP MK.TS. NEW YO 23-Aug-2000 0.00 LONG TERM OPER-PIMCO -49,493.99 GNMA POOL#0504271 28-Jul-2000 46,856.89 36210WFL8 6.500% 04115/2029 DD 04/01/ 23-Aug-2000 -47,204.89 s FIRST UNION CAP MK.TS. NEW YO -348.00 lONG TERM OPER-PIMCO -49,493.99 GNMA POOL#0504271 28-Jul-2000 196.60 362IOWFL8 6.500% 04/15/2029 DD 04/01/ 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PIMCO -49,493.99 GNMA POOL #0504271 28-Jul-2000 47,053.49 362JOWPL8 6.500% 04/15/2029 DD 04/01/ 23-Aug-2000 0.00 FC FIRS1' UN ION CAP MKTS. NEW YO 25-Aug-2000 0.00 LONG TERM OPER-PIMCO -2,299,079.00 FHLMC MUL T!CLASS CTF 2146 QT 0 1-Aug-2000 2,235,764.52 3l33TKKU3 6.000% I 1/15/201 1 04-Aug-2000 -2,258,485.89 s GOLDMAN SACHS & CO, NY -22,721.37 ll-Sep-2000 11~56:01 Executive Workbench OCSGOOO 10000 OCSD-CONSOLJDATED SHARES/PAR SECURITY fD TRANS CO'DE -2,299,079.00 3133TKKU3 IS -2,299,079.00 3133TKKU3 FC -6,250,000.00 01N060684 s -6,250,000.00 OIN060684 FC -1 ·1,000,000.00 OIN062680 s -I J ,000,000.00 OIN062680 FC -3,500,000.00 OIN062680 s ll-Sep-2000 !1:56;0} ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL Ol-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROJ<ER LONG TERM OPER-P!MCO Fl-II.MC MUL Tl CLASS CTF 2146 QT 6,000% 11115/2011 LONG TERM OPER-PlMCO fHLMC MUL Tl CLASS CTF 2146 QT 6.000% 11/1512011 GOLDMAN SACHS & CO. NY LONG TERM OPER-PIMCO COMMIT TO PUR GNMA SF MTG 6.00% 8/15/2030 GOLDMAN SACHS & CO , NY LONG TERM OPER-PIMCO COMMIT TO PUR ONMA SF MTG 6.00% 8/15n030 GOLDMAN SACHS & CO, NY LONG TERM OPER-PlMCO COMMIT TO PUR GNMA SF MTG 6.500% 08/15/2030 BEAR STEARNS & CO INC, NY LONG TERM OPER-PlMCO COMMIT TO PUR GNMA SP MTG 6.500% 08/15/2030 SEAR STEARNS & CO INC, NY LONG TERM Ol'ER-PIMCO COMMIT TO PUR GNMA SF MTG 6.500% 08115/2030 MERRJLL LYNCH PIERCE FENNER TRADE DATE/ SETTL DATE/ COMPL l>ATE 01-Aug-2000 04-Aug-2000 0 l-Aug-2000 04-Aug-2000 04-Aug-2000 15-Aug-2000 23-Aug-2000 I 5-Aug-2000 23-Aug-2000 23-Aug-2000 I 5-Aug-2000 23-Aug-2000 l 5-Aug-2000 23-Aug-2000 23-Aug-2000 I 5-Aug-2000 23-Aug-2000 ll PAGE: 32 AMOUNT/ COST/ GAIN/LOSS 1,149.54 0.00 0.00 2,236,914.06 0.00 0.00 5,836,425. 78 -5,753,906.25 82,519.53 5,836,425.78 0.00 0.00 10,547,753.91 -10,487,812.50 59,941.41 10,547,753.91 0.00 0.00 3,Jj6,171:88 -3,338, 125.00 18,046.88 Executive Workbench OCSGOOO I 0000 OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE -3,500,000.00 OIN062680 FC -2,000,000.00 01N080682 s -2,000,000.00 01N080682 FC PRINCIPAL PAYMENTS FIXED INCOME SECURITJ'ES -5,723.00 31348SWZ3 FC 44,936.00 3133TCE95 PDC -44,950.00 3133TCE95 PD 1 l-Sep-2000 1 !:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PlMCO COMMIT TO PUR GNMA SF MTG 6.500% 08/15/2030 MERRlLL L YNCl-l PIERCE FENNER LONG TERM OPER-PIMCO COMMIT TO PUR GNMA SF MTG 8.00% 08/1 S/2030 BEAR STEARNS & CO INC, NY LONG TERM OPER-PIMCO COMMIT TO PUR GNMA SF MTG 8.00% 08/15/2030 BEAR STEARNS & CO INC, NY LONG TERM OPER-PJMCO fHLMC 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 FHLMC MUL Tl CLASS CTF E3 A VAR RT 08115/2032 TRADE DATE/ S'ETTL DA TE/ COMPLDATE I 5-Aug-2000 23-Aug-2000 23-Aug-2000 I 6-Aug-2000 23-Aug-2000 l 6-Aug-2000 23-Aug-2000 23-Aug-2000 0 1-Jul-2000 0 1-Jul-2000 15-Aug-2000 0 J-Jul-2000 Ol-Jul-2000 Ol-Jul-2000 01 -.lul-2000 PAGE: n AMOUNT/ COST! GAlN/LOSS 3,356, 171.88 0.00 0.00 2,026,640.63 -2,01 1,250.00 15,390.63 2,026,640.63 0.00 0.00 5,723.00 0.00 0.00 -44,936.00 44,985.14 49.14 44,950.00 -44,999.16 -49.16 Executive Workbench OCSGOOOJ 0000 OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE -44,950.00 3133TCE95 FC -48,856.65 3133T02D5 PD -48,856.65 3133T0205 FC -37,018-25 1133TKKU3 PD -37,018.25 3133TKKU3 FC -I 69,580.49 3!28DDQ55 PD -169,580.49 3128DDQ55 FC IJ-Sep-2000 11:56:01 II ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL Ol-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PlMCO FHLMC MUL TICLASS CTF EJ A VAR RT 08/15/2032 LONG TERM OPER-PIMCO FHLMC MULTICL MTG P/C 1574 E 5.900% 06/15/201. 7 LONG TERM OPER-PIMCO FHLMC MULTICL MTG P/C 1574 E 5.900% 06/15/2017 LONG TERM OPER-PlMCO FHLMG MULT(CLASS CTF 2146 QT 6.000% 11/15/201 1 LONG TERM OPER-PIMCO FHLMC MULTICLASS CTF 2146 QT 6.000% 11/15/2011 LONG TERM OPER-PIMCO FHLMC GROUP #G5-0476 7.000% 02/01/2003 OD 021011 LONG TERM OPER-PIMCO FHLMC GROUP #05-0476 7.000% 02/01/2003 DD 02/01/ TRADE DATE/ SETTL DATE/ COMPLDATE 0 J-Jul-2000 01-Jul-2000 15-Aug-2000 01-Aug-2000 0 I -Aug-2000 01-Aug-2000 01-Aug-2000 15-Aug-2000 0 l-Aug-2000 Ol-Aug-2000 OI-Aug-2000 0 l-Aug-2000 15-Aug-2000 0 l-Aug-2000 01-Aug-2000 01-Aug-2000 0 l-Aug-2000 15-Aug-2000 II PAGE: 34 AMOUNT/ COST/ GAIN/LOSS 44,950.00 0.00 0.00 48,856.65 -48,787.95 68.70 48,856.65 0.00 0.00 37,018.25 -36,364.65 653.60 37,018.25 0.00 0.00 169,580.49 -172,230.18 -2,649.69 169,580.49 0.00 0.00 Executive Workbench OCSGOOOJOOOO OCSD-CONSOL!DATED SHARES/PAR SECURITY ID TRANS CODE -4,455.17 36225CNM4 Pb -4,455.17 36225CNM4 FC -24,577.75 36225CC20 PD -24,577.75 36225CC20 FC -27,859.60 36225CAZ9 PO -27,859.60 36225CAZ9 FC -21,159.52 36225CN28 PD JJ-Sep-2000 11:56:01 II ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL Ol-AUG-2000-31-AUG-2000 TRANSACTlON DESCRIPTION/ BROKER LONG TERM OPER-PfMCO GNMA II POOL #0080395 6.500% 04/20/2030 DD 04/0.l/ LONG TERM OPER-PIMCO GNMA 11 POOL #0080395 6.500% 04/20/2030 DD 04/01/ LONG TERM OPER-PIMCO GNMA II POOL #080088M VAR RT06/20/2027 DD 06/01/9 LONG TERM OPER-PIMCO GNMA II POOL #080088M VAR RT06/20/2027 DD 06/01/9 LONG TERM OPER-PIMCO GNMA 11 POOL #0080023 7.125% l2/20/2026DD12/01/ LONG TERM OPER-PJMCO GNMA IJ POOL #0080023 7.125% 12/20/2026 DD 12/01/ LONG TERM OPBR-PIMCO GNMA If POOL #080408X 6.500% 0512012030 DD 051011 TRADE DATE/ SETTLDATE/ COMPLDATE 01-Aug-2000 Ol-Aug-2000 Ol-Aug-2000 0 J -Aug-2000 2 1-Aug-2000 Ol-Aug-2000 0 l-Aug-2000 Ol-Aug-2000 0 1-Aug-2000 21-Aug-2000 01-Aug-2000 0 l-Aug-2000 01-Aug-2000 OJ-Aug-2000 21-Aug-2000 Ql -Aug-?.000 0 I -Aug-2000 PAG!t: AMOUNT/ COST/ GAIN/LOSS 4,455.17 -4,414.79 40.38 4,455.17 0.00 0.00 24,577.75 -25,115.39 -537.64 24,577.75 0.00 0.00 27,859.60 -28,321.02 -46] .42 27,859.60 0.00 0.00 ?.1,159 5?. -20,944.62 214.90 Executive Workbench OCSGOOO 10000 OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE -2 l, I 59.52 36225CN28 FC -10,245.55 31348SWZ3 PD -41,024.00 3133TCE95 PD -2,512.39 3981011AE4 PD -2,512.39 39810#AE4 FC -582.6:2. 302998GE3 PD -582.62 302998GE3 FC IJ -Sep-2000 /1:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PIMCO GNMA II POOL #080408X 6.500% 0512012030 DD 05/01/ LONG TERM OPER-PIMCO FHLMC GROUP #78-6064 6.384% 01/01/2028 DD 12/01/ LONG TERM OPER-PIMCO FHLMC MULTICLASS CTF EJ A VAR RT 08/15/2032 LONG TERM OPER-PIMCO GREYSTONE SVCNG CORP Fl-tA #95 7.430% 06/01/2003 DD 0212910 LONG TERM OPER-PIMCO GREYSTONE SVCNG CORP FHA #95 7.430% 06/01/2003 DD 02/29/0 LONG TERM OPER-PIMCO WMP/HUNTOON PAIGE #000-11150 7.500% 12/01/2030 DD 10/21/9 LONG TERM OPER-PIMCO WMP/HUNTOON PAIGE #000-1l150 7.500% 12/01/2030 DD 10/21/9 TRADE DATE/ SETTL DATE/ COMPL DATEi 01-Aug-2000 Ol·Aug-2000 21-Aug-2000 0 l-Aug-2000 01-Aug-2000 01-Aug-2000 01-Aug-2000 Ol-Aug-2000 01-Aug-2000 01-Aug-2000 01-Aug-2000 25-Aug-2000 OJ-Aug-2000 0 l-Aug-2000 OI-Aug-2000 OJ-Aug-2000 30-Aug-2000 PAGE: 36 AMOUNT/ COST! GAIN/LOSS 21,159.52 o.oo 0.00 10,245.55 ·9,995.81 249.74 41,024.00 -41,068.87 -44.87 2,512.39 -2,475.69 36.70 2,5}2.39 0.00 0.00 582.62 -569.97 12.65 582.62 0.00 0.00 ExecuJive Workbench OCSGOOO 10000 OCSD-CONSOLIDATED SHARES/PAR SECURlTY ID TRANSCODE MATURITIES -28,899.34 3935052Y7 PD -28,899.34 3935052Y7 FC -4,284.65 3l677EAA4 PD -4,284.65 31677EAA4 FC -43 ,729.36 3837H4NX9 PD -43,729.36 3837H4NX9 FC CASH & CASH EQUlV ALENTS 11-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKE~ LONG TERM OPER-PIMCO GREEN TREE CORP 99-D CL A-1 6.290% 10115/2013 DD 08/26/9 LONG TERM OPER-PIMCO GREEN TREE CORP 99-D CL A-I 6.290% I 0/15/ZO 13 DD 08/26/9 LONG TERM OPER-PIMCO PlFTH THrRD BK AUTO TR 96A C 6.200% 09/01/2001 DD 03/15/9 LONG TERM OPER-PIMCO FlFTH THIRD BK AUTO TR 96A C 6.200% 09/01/2001DD0311519 LONG TERM OPER-PIMCO GNMA GTD REMJC TR 2000-9 FH VAR RT 02/16/2030 LONG TERM Ol'ER-PIMCO GNMA GTD REMIC TR 2000-9 FH VAR RT 02/16/2030 TRADE DATE/ SETTL DATE/ COMPLDATE 15-Aug-2000 l 5-Aug-2000 l 5-Aug-2000 15-Aug-2000 15-Aug-2000 l 5-Aug-2000 I 5-Aug-2000 t 5-Aug-2000 l 5-Aug-2000 l 5-Aug-2000 16-Aug-2000 16-Aug-2000 16-Aug-2000 16-Aug-2000 16-Aug-2000 PAGE 3'7 AMOUNT/ COST/ GAlN/LOSS 28,899.34 -28,899.34 0.00 28,899.34 0.00 0.00 4,284.65 -4,284.65 0.00 4,284.65 0.00 0.00 43,729.36 -43,729.36 0.00 43,729.36 0.00 0.00 Executive Workbanch OCSGOOO I 0000 OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE -1,300,000.00 313396A45 MT -4, l 09,000.00 313588A62 MT -1 ,600,000.00 97665RH'F2 MT -600,000.00 27746AHP7 MT -10,3 00,000.00 313396034 MT FIXED INCOME SECURITIES INTEREST -400,000.00 52517PLMI MT I l-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTJON DESCRIPTION/ BROKER LIQUID OPER-PIMCO FEDERAL HOME LN MTG CRP DISC MAT 08/01/2000 LJQUID OPER-PlMCO FEDERAL NATL MTG ASSN DISC N MAT 08/03/2000 LONG TERM OPER-PIMCO WISCONSTN EL PWR DISC 08115/2000 LIQUID OPER-PIMCO EASTMAN KODAK CO DISC 08/23/2000 LONG TERM OPER-PfMCO FEDERAL HOME LN MTG CORP DIS MAT 08/24/2000 LIQUID OPER-PIMCO LEHMAN BROS HLDGS MTN TR 002 6.400% 08/30/2000 DD 0912619 TRADEDATEJ SETTLDATE/ COMPLDATE Ol-Aug-2000 Ol-Aug-2000 0 l-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 l 5-Aug-2000 I 5-Aug-2000 l 5-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 24-Aug-2000 24-Aug-2000 24-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 PAGE: 38 AMOUNT/ COST/ GAIN/LOSS 1,283,341 .95 -1,283,341.95 0.00 4,059,806.57 -4,059,806.57 0.00 1,586,568.00 -1,586,568.00 0.00 592,904.17 -592,904.1 7 0,00 10,212,038.00 -10,212,038.00 0.00 400,000.00 -400,216.00 -216.00 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: PORTFOLIO DETAIL OCSGOOOJOOOO Ol-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/ TRANSCODE BROKER COMPLDATE GAJN/LOSS LONG TERM OPER-P!MCO -7,300,000.00 ONEOK INC NEW NT 24-Jul-2000 -127,020.00 682680AJ2 FLTG RT 04/24/2002 OD 04/24/ 24-Jul -2000 0.00 ITC 24-Jul-2000 0.00 LONG TERM OPER-PIMCO 7,300,000.00 ONEOK INC NEW NT 24-Jul-2000 128,431.33 682680AJ2 FL TG RT 04/24/2002 DD 04/24/ 24-Jul-2000 0.00 IT 24-Jul-2000 0.00 LONG TERM OPER-PlMCO 0.00 BSDT-LATE MONEY DEPOSIT ACCT Ol-Aug-2000 0.30 996087094 0 l-Aug-2000 0.00 IT Ol-Aug-2000 0.00 LONG TERM OPER-PfMCO 900,000.00 FEDERAL HOME LN BK CONS BOS Ol-Aug-2000 30,375.00 3133MAQJI 6.750% 02/0112002 DD 02/01/0 Ol -Aug-2000 0.00 lT 0 l -Aug-2000 0.00 LONG TERM OPER-PlMCO 7,000,000.00 OLD KENT BK MTN SB 00001 OJ-Aug-2000 131,614.56 67982XAA6 VAR RT 11/01/2005 DD 04/28/0 0 l-Aug-2000 0.00 IT 01-Aug-2000 0.00 LIQUID OPER·PIMCO 0.00 BSDT-LATE MONEY DEPOSIT ACCT 0 l-Aug-2000 0.03 996087094 0 l -Aug-2000 0.00 IT 0 l-Aug-2000 0.00 LONG TERM OPER-PIMCO 1,000,000.00 HOUSEHOLD FIN MTN SR #00570 0 l-Aug-2000 16,716.53 4418IKZT4 PL TG RT 08/01/2001 DD 09/04/ Ol-Aug-2000 0.00 IT OJ -Aug-2000 0.00 JI-Sep-2000 11:56:01 Executive Workbench OCSGOOO I 0000 OCSD-CONSOLIDATED S1IARES/P AR SECURITY ID TRANSCODE 1,300,000.00 313396A45 IT 175,000.00 12560QAK5 IT 0.00 996085247 IT 0.00 996085247 IT 4, l 09,000.00 313588A62 IT 2,000,000.00 066365DW4 IT 2,000,000.00 345397RV7 lT I J-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL OI-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LIQUfD OPER-PIMCO FEDERAL HOME LN MTG CRP DISC MATOS/0112000 LIQUID OPER-PIMCO CIT GROUP HLDGS MTN# SR 000 5.625% 02/02/2001 DD 02/02/9 LONG TERM OPER-PIMCO· DREYPUS TREASURY CASH MGMT LIQUJD OPER-PIMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PIMCO FEDERAL NATL MTG ASSN DISCN MAT 08/03/2000 LONG TERM OPER-PIMCO BANKERS TR NY CORP GLOBAL NT FLTG RT 0511112003 DD 05/1 1/ LONG TERM OPER-PIMCO FORD MTR CR CO GLOBAL NTS FLTG RT 02/13/2003 DD 02/13/ TRADE DATE/ SETTLDATE/ COMPLDATE Ol-Aug-2000 Ol-Aug-2000 0 l-Aug-2000 02-Aug-2000 02-Aug-2000 02-Aug-2000 03-Aug-2000 0 l-Aug-2000 03-Aug-2000 03-Aug-2000 0 l-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 I 1-Aug-2000 l l-Aug-2000 I l-Aug-2000 l 4-Aug-2000 13-Aug-2000 14-Aug-2000 PAGE; 40 AMOUNT/ COST/ GAIN/LOSS 16,658.05 0.00 0.00 4,921.88 0.00 0.00 7,0I0.41 0.00 0.00 1,095.89 0.00 0.00 49, 193.43 0.00 0.00 34,851.39 0.00 0.00 34,,605.28 MO 0.00 Executive Workbench OCSGOOOJ 0000 OCSD-CONSOLWATED SHARES/PAR SECURITY lD TRANSCODE I, 730,000.00 79549BBG1 IT 400,000.00 525l7PLM1 IT 3,000,000.00 81240QJAI IT 169,580.49 3128DDQ55 IT 1,600,000.00 97665R.HF2 IT 37,018.25 3133TKKU3 IT 48,856.65 3133T02DS TT 11-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PJMCO SALOMON SMITH BARNEY HLDGS I 3.650% 02/14/2002 DD 02114/ LIQUID OPER-PIMCO LEHMAN BROS HLDGS MTN TR 002 6.400% 08/30/2000 DD 0912619 LONG TERM OPER-PIMCO SEARS ROEBUCK ACCEP CORP MTN 6.630% 07/09/2002 DD 0710919 LONG TERM OPER-PIMCO FHLMC GROUP #05-0476 7.000% 02/01/2003 DD 021011 LONG TERM OPER-PIMCO WISCONSIN EL PWR DISC 08/15/2000 LONG TERM OPER-PIMCO FHLMCMULTICLA.SS CTF 2146 QT 6.000% 1 l/15/201 l LONG TERM OPER-PIMCO FHLMC MULTJCL MTG P/C 1574 E 5.900% 06/15/2017 TRADE DATE/ SETTL DATE/ COMPLDATE I 4-Aug-2000 14-Aug-2000 14-Aug-2000 t 5-Aug-2000 15-Aug-2000 l 5-Aug-2000 I 5-Aug-2000 15-Aug-2000 I 5-Aug-2000 l 5-Aug-2000 01-Aug-2000 15-Aug-2000 15-Aug-2000 l 5-Aug~2000 l 5-Aug-2000 J 5-Aug-2000 0 l-Aug-2000 l 5-Aug-2000 I 5-/\ug-2000 0 J -Aug-2000 15-Aug-2000 PAGE: AMOUNT/ COST/ GAIN/LOSS 34,184.17 0.00 0.00 12,800.00 0.00 0.00 99,450.00 0.00 0.00 47,903.10 0.00 0.00 13,432.00 0.00 0.00 11,680.49 0.00 0.00 1,373.17 0.00 0.00 Executive Workbench OCSGOOO 10000 OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANS CODE 5,723.00 3l348SWZ3 IT 28,899.34 3935052Y7 IT 44,950.00 3133TCE95 JT 14.00 3133TCE95 lT 4,284.65 Jl677EAA4 IT 3,800,000.00 37042WZKO lT 12,295.31 3l33T17A4 IT I J-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER ~ONG TERM OPER-PIMCO HLMC 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 MUL Tl CLASS CTF E3 A VAR RT 08/J S/2032 LONG TERM OPER-PJMCO FHLMC MULTJCLASS CTF E3 A VAR RT 08/ 15/2032 LONG TERM OPER-PIMCO FIFTH THIRD BK AUTO TR 96A C 6.200% 09101 /200 l DD 03/ l 5/9 LONG TERM OPER-PIMCO GENERAL MTRS ACCEP #TR 00562 FLTG RT 02/14/2003 DD 02/14/ LONG TERM OPER-PIMCO FHLMC MUL T!CLASS CTF SER 162 6.000% 11/15/2023 DD 11/01/9 TRADE DATE/ SETTLDATE/ COMPLDATE 15-Aug-2000 0 1-Jul-2000 15-Aug-2000 l 5·Aug-2000 l 5-Aug-2000 15-Aug-2000 15-Aug-2000 Ol-Juf-2000 15-Aug-2000 15-Aug-2000 0 l ·J ul-2000 15-Aug-2000 J 5-Aug-2000 I 5-Aug-2000 l 5-Aug-2000 15-Aug-2000 I 5-Aug-2000 I 5-Aug-2000 16-Aug-2000 Ol-Aug-2000 l 6-Aug-2000 II PAGE: 42 AMOUNT/ COST/ GAIN/LOSS 1,678.17 0.00 o.oo 1,419.37 0.00 0.00 I 5,462.04 0.00 0.00 14.00 0.00 0.00 107.16 0.00 0.00 66,082.38 0.00 0.00 12,295.31 0.00 0.00 Erecutive Workbench OCSGOOO J 0000 OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE 43,729.36 3837H4NX9 IT 3,950,000.00 370425QV5 lT 2.000.000.00 3!!37H3C70 IT 27,859.60 36225CAZ9 IT 24.577.75 36225CC20 IT 4,455.)7 36225CNM4 IT 2 1, 1.59 . .52 36225CN28 IT l/-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TBRM OPER-Pl MCO GNMA GTD REMIC TR 2000-9 FH VAR RT 02/16/2030 LONG TERM OPER-P1MCO GMACNTS FLTG RT 08/18/2003 DD 08/17/ LONG TERM OPER-PIMCO GNMA GTD REMJC TR 2000-2 PA 7.000% 12/20/2022 LONG TERM OPER-PIMCO ONMA II POOL #0080023 7.125% 12/20/2026 DD 12/01/ LONG TERM OPER-PIMCO GNMA II POOL #080088M VAR RT 06/20/2027 DD 06/0J/9 LONG TERM OPER-PIMCO GNMA 11 POOL #0080395 6.500% 04/20/2030 Db 04/01/ LONG TERM OPER-PlMCO GNMA II POOL #080408X 6.500% 05/20/2030 DD 05/01/ TRADE DATE/ SETTLDATE/ COMPLDATE l6-Aug-2000 16-Aug-2000 16-Aug-2000 18-Aug-2000 18-Aug-2000 l 8-Aug-2000 21-Aug-2000 01-Aug-2000 21-Aug-2000 21-Aug-2000 0 l-Aug-2000 2 l-Aug-2000 21-Aug-2000 OJ -Aug-2000 21-Aug-2000 21-Aug-2000 Ol-Aug-2000 21 -Aug-2000 21-Aug-2000 01-Aug-2000 2 l-Aug-2000 PAGE: AMOUNT/ COST/ GAIN/LOSS 15,288.02 0.00 0.00 69,264.08 0.00 0.00 11,666.67 0.00 0.00 7,899.25 0.00 0.00 I 1,223.83 0.00 0.00 6,747.26 0.00 0.00 54,055.47 0.00 0.00 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 44 PORTFOLIO DETAIL OCSGOOOJOOOO 01-AUG-2000 -31-AUG-2000 OCSD-CONSOL!DATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPLDATE GAIN/LOSS ~ONG TERM OPER-PIMCO 0.00 CHRYSLER FINL LLC MTN #TR006 21-Aug-2000 18,429.46 17120QE80 FLTG RT 08/08/2002 DD 041081 20-Aug-2000 0.00 IT 2 l-Aug-2000 0.00 LIQUID OPER-PIMCO 600,000.00 EASTMAN KODAK CO DISC 23-Aug-2000 7,095.83 27746AHP7 08/23/2000 23-Aug-2000 o.oo IT 23-Aug-2000 0.00 LONG TERM OPER-PIMCO I 0,300,000.00 FEDERAL HOME LN MTG CORP DIS 24-Aug-2000 87,962.00 313396D34 MAT 08/24/2000 24-Aug-2000 0.00 IT 24-Aug-2000 0.00 LONG TERM OPER-PlMCO 2,000,000.00 fHLMC MUL Tl CLASS CTF Tl I A6 25-Aug-2000 10,833.33 3133TDPV2 6.500% 09/25/2018 25-Jul-2000 0.00 IT 25-Aug-2000 0.00 LONG TERM OPER·PIMCO 2,512.39 GREYSTONE SVCNO CORP FHA #95 25-Aug-2000 10,755.35 398JO#A.E4 7.430% 0610112003 DD 0212910 0 l-Aug-2000 0.00 IT 25-Aug-2000 0.00 LONG TERM OPER-PIMCO 2,000,000.00 PORD MTR CR CO TERM ENHANCED 28-Aug-2000 35,022.36 345397SC8 FLTG RT 08/27/2006 DD 08/27/ 27-Aug-2000 0.00 lT 28-Aug-2000 0.00 LIQUID OPER-PIMCO 400,000.00 LEHMAN BROS HLDGS MTN TR 00? 30-Aug-?.OOO l,066.67 52517PLMI 6.400% 08/3012000 DD 0912619 30-Aug-2000 0.00 IT 30-Aug-2000 0.00 J l-Sep-2000 11 :56:01 Executive Workbench OCSGOOOJOOOO OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE 582.62 302998GE3 IT 0.00 990000PJ4 CD 0.00 7954988Gl CD 0.00 9128272M3 CD 0.00 9128273A8 CD JJ-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRlPTlON/ BROKER LONG TERM OPER-PIMCO WMP/HUNTOON PAIGE #000-11150 7.500% 12/01/2030 DD 10/21/9 LONG TERM OPER-PIMCO SHORT TERM PDS INT ADJ NET OF OVERNIGHT INTEREST LONG TERM OPER-PIMCO SALOMON SMITH BARNEY HLDGS I 3.650% 02/1412002 DD 02/14/ LONG TERM OPER-PIMCO US TREASURY fNFLAT!ON INDEX 3.375% 01/15/2007 DD 01/15/ LONG TERM OPER-PLMCO US TREASURY fNFLATION INDEX 3.625% 07/15/2002 DD 07/15/ TRADE DATE/ SETTLDATE/ COMPLDATE 30-Aug-2000 Ol-Aug-2000 JO-Aug-2000 31-Aug-2000 3 l-Aug-2000 31-Aug-2000 3 l-Aug-2000 3 l-Aug-2000 31-Aug-2000 3 I -Aug-2000 3 1-Aug-2000 31-Aug-2000 ,, PAGg_. AMOUNT/ COST/ GA JN/LOSS 6,084.16 0.00 0.00 9.36 0.00 0.00 l0,587.60 0.00 0.00 140,990.00 0.00 0.00 49,692.00 0.00 o.oo executive Workbench Agency Anaheim Brea Buena Park Costa Mesa Cypress Fountain Valley Fullerton Garden Grove Huntington Beach Irvine La Habra La Palma Newport Beach Orange Placentia Pasadena C//13/Po -LJ~u:z.I £;t- PROCUREMENT CARD SYSTEM SURVEY F~~~ Contact YIN (6119/99) YIN (9/7/00) 765-5217 Carole Ibarra Yes Yes American Express 990-7787 Kennie Nicomede Not yet-2 Yes months Ca/Card 562-3741 Diane Bolin No No 754-5211 Cindy West Yes Yes Ca/Card 229-6719 Alicia Chachere No No 593-4413 Simone Friend No No 738-6535 Bill Niedfelt Yes Yes Ca/Card 741-5050 Bob Kelleher Yes Yes 960-8876 Ren Corbett Not yet, waiting Yes for Admin. Ca/Card Approval 949-724-6181 Clay Martin (no longer Not yet, still in Yes, very happy with city) planning stage with program Tracy Hamilton Bank of America Visa 562/905-9700 Georgina Lewis No Staples Charge City Mgr's office Card 523-7700 Peggy(Nolongerwlth No No city) Tammy 949-644-3065 Bill West No Yes Bank of America Travis Askey in charge of ProCard Pgm 744-2252 Susan Campbell No Yes Ca/Card 993-8134 Terry Judd Not yet Considering Stage 961-0283 Fax 626/7 44-6763 Larry Hammond Yes Yes 1 of 3 PROCUREMENT CARD SYSTEM SURVEY Agency Contact YIN (6/19/99) Y/N (9/7/00) Santa Ana 647-5466 Katie Montgomery No No 647-5329 Terrv Yokasaki Seal Beach 562/431-2527 Liz Stoddard (no longer No No with city) Stanton 714/379-9222 Florence Ruiz No No Ext. 230 Tustin 573-3000 Kathy Barr No Vendor credit card Joe Meyers Villa Park 998-1500 Jean Hughes Yes Yes Limited Westminster 898-3311 Pam Narz Yes Yes X208 American Express 373-4684 Fax Yorba Linda 961-7100 Mary Kinney Yes Yes Procurement Card program and specific vendor charge cards UCI 949-824-6516 Jackie Fenton Yes Yes Mastercard 600 cards issued Midway City 893-3553 Kitty/finance No Yes Sanitary District Union Bank Irvine Ranch 949-453-5300 Glenna Anderson Yes Yes Water District American Express County of San 619/694-2932 *John Dukes Yes Yes Diego Visa 250 Cards issued East Bay 510/287-0449 Judee Takei Yes Yes Municipal Utility 510/287-2017 Eulalia Sweet Mastercard District 400 cards issued LA County 213/922-1035 Joanne Cummings Yes Yes Metro Trans US Bank Authority 213/922-1006 30 cards issued Fax for pilot program County of 714/567-7300 Catherine Potter Yes Yes Orange Ca/Card 2 of 3 PROCUREMENT CARD SYSTEM SURVEY Agency Contact YIN (6/19/99) YIN (9/7100) Metropolitan 213-217-7574 Don Heida Yes Yes Water District Bank of America Mastercard 50 cards issued Union Sanitary 510/790-0100 Pat Ward -Purchasing Yes Yes -Fremont Ext. 241 Ca/Card \\radon\data1\wp.dta\fin\230\ryan\Surveys\PROCUREMENT CARD SYSTEM SURVEY 9-7-00 portrait.doc 3 of 3 ATTACHMENT 2 ORANGE COUNTY SANITATION DISTRICT CLASSIFICATION DESCRIPTION Title: HUMAN RESOURCES INFORMATION SYSTEMS ANALYST DISTINGUISHING CHARACTERISTICS No. 8112 Date: 9/27100 Revised: Approved: Page: 1of2 Under general supervision, serves as the primary information systems (HRIS) support person for the Human Resources & Employee Development Department (HR/ED). Administers and coordinates all aspects of the department's HRIS, including liaison duties with the Information Technology (IT) Department. In addition to HRIS administration and databa~e support, performs duties related to the development and administration of human resources programs, including training and development, employment, benefits administration and compensation. EXAMPLE OF DUTIES Recommends specifications and develops and implements HRIS, system reporting features, and policies and procedures for internal use. In partnership with IT, manages relationships with software and hardware vendors and ensures the development of proper training and documentation for system use and maintenance. Consults with all levels of management in the development of organization-wide use of human resources related systems (e.g., Performance-Now). Establishes data tables, structures, files, interface requirements and data integrity protocols for ongoing administration. Analyzes, develops, tests and implements business applications involving HR data by establishing system design, file requirements and processing specifications for reports, screens and data manipulation routines that are modified or added to HRIS. Responsible for the data integrity and efficient operation of the HRIS and Training software databases. Implements and coordinates appropriate data control, review and audit procedures in training software. Exports and reformats HR/training data for use on other computer systems as needed. Performs analysis, design, and testing of programs. Works with HRIS vendor and IT as a liaison on technical projects, problems and issues. Coordinates and prioritizes ongoing development and implementation of database/software features and appropriate software conversions, when necessary. Generates and reviews ad hoc reports for all areas of the organization upon request. Responsible for development, maintenance and support of the HR/ED intranet/internet Web sites. O RANGE COUNTY S ANITATION DISTRICT .l.=>c==:J . CLASSIFICATION DESCRIPTION Title: HUMAN RESOURCES INFORMATIONS SYSTEM ANALYST No. 8112 Date: 9/27/00 Revised: Approved: Page: 2 of 2 Performs train-the-trainer functions for the HR/ED Department with various software programs. Trains employees on various software programs such as Performance Now, Agenda Reporting software, FIS (JO Edwards), and various Microsoft products. MINIMUM QUALIFICATIONS Bachelor's degree in computer science, business administration, or closely related field from an accredited institution is required plus a minimum of two years performing human resources and employee development related duties. Experience administering and operating human resources information systems. Knowledge of microcomputer operations and experience using databases. Experience implementing/supporting software programs. Experience with basic Web intraneVinternet design and development desired. Strong communications skills. Ability to plan and organize projects and meet multiple deadlines under pressure. LICENSE OR CERTIFICATE REQUIRED None \\radon\data 1\wp.dta\hr\510\ T omkol\Recruiting\HRIS JD .doc September 13, 2000 STAFF REPORT Restructuring and Modernization of the District's Certificate of Participation Financing Program On August 31, 2000, the District completed a comprehensive refunding and restructuring of its outstanding Certificates of Participation (COPs), including issuance of new Certificates to reimburse prior expenditures funded from District reserves. This summary is intended to provide a brief history of the financing along with highlights of the results achieved. FINANCING BACKGROUND Prior to completion of the recent refunding and restructuring program, the District had five series of COPs with a total outstanding par amount of $347,465,000. The legal documents forming the foundation for these financings dated back to 1986, although that original indenture had been subsequently amended by several new money and refunding transactions between 1990 and 1993. The resulting legal structure included three separate financing liens known as the 1) closed senior lien, 2) open senior.or "mezzanine" lien, and 3) junior lien. The prior issues are summarized below: Bond Par Amount Fixed/ Current Series Outstandina Variable Lien 1990 Series A $80.SOOmm Dailies Junior 1991 Series B $15.395mm Fixed Rate Closed Senior 1992 Series C $83.BOOmm Dailies Junior Series 1992 $124.170mm Synthetic Fixed Open Senior Series 1993 $43.600mm Synthetic Fixed Open Senior At the time of issuance of these prior obligations, the District did not have formal credit ratings from the municipal bond rating agencies and, accordingly, none of the District's outstanding COPs had been sold under the District's own credit. Rather, all five transactions had "borrowed" the credit either of a municipal bond insurer or a Letter of Credit (LOG) bank to provide ratings for the COPs. OCSD • P.O. Box 8127 • Fountain Valley, CA 92728-8127 • (714) 962-2411 2000 Debt Restructuring Page 2 of 7 September 13, 2000 Of particular note, the District's 1990 Series A COPs were secured by a NatWest LOC which was scheduled to expire in December 2000. Additionally, the 1992 Series C COPs utilized a FGIC liquidity facility for which the original cost was 40 bps per annum. In order to reduce the cost the Series C liquidity facility, staff solicited bids for replacement facilities during the first half of 1999. This process resulted in a reduction of the Series C bank facility cost from 40 bps per annum to 20 bps per annum. In conjunction with soliciting bids for the Series C replacement facility, staff also requested qualified banks to provided indications of their interest in replacing the expiring Series A NatWest LOC. Resulting conversations with potential bidders indicated a relative lack of interest due primarily to the complicating existing legal documents securing the Series A COPs. In short, the banks expressed limited interest in providing a replacement LOC due to the "several" nature of the Series A multi-district credit structure, and the resulting complexities contained in the existing COP covenants. Despite this feedback, staff still needed to arrange for a cost-effective replacement for the Series A LOC by the end of 2000. Moreover, the newly adopted Strategic Plan required that one-half of the pending $1 billion capital improvement program through FY 2009-10 be financed through new long-term borrowings. Given these important considerations, and the stated reservations of potential credit enhancement providers, staff began working with PaineWebber to determine an optimal means of modernizing at least the Series A COPs, and ideally all of the District's outstanding COPs. RESTRUCTURING GOALS Based upon a review of the District's COP legal documents, PaineWebber and staff developed plans for a potential comprehensive refunding and restructuring program designed to modernize most, or ideally, all of the District's COP legal documents. Key goals included: • Conform COP legal documents to reflect the newly consolidated District (in place of the prior legal structure which separately obligated each participating district) • Secure formal "Aa" category senior lien credit ratings (so that future financings would not require expensive credit enhancement) • Replace three existing financing liens with a single "working" lien (to simplify market analysis of the District's credit structure) • Create modernized bond covenants to maximize financial flexibility and improve administrative efficiency (replacing certain archaic features of the existing legal structure) Page 2 of 7 2000 Debt Restructuring Page 3 of 7 September 13, 2000 • Eliminate the need for high cost credit enhancement (by allowing the District's COPs to be sold under OCSD's own credit) • Levelize the existing net debt service (to provide for more stable revenue requirements from one fiscal year to the next) • Facilitate future debt financing of Strategic Plan CIP (to accommodate an expected $500 million of new COPs over the next decade) PRELIMINARY .APPROACH From a technical standpoint, all of the Districfs COPs could be refunded. However, the Series 1992 and 1993 COPs were synthetic fixed rate transactions, and PaineWebber estimated that at current market yields, a refunding of those COPs would entail nearly $10 million in present value refunding costs. Seeking to achieve the restructuring objectives with little or no present value cost, PaineWebber and staff developed a two:..phase refunding and re.structuring approach. Phase I: Begin preliminary work with the rating agencies to develop a legal structure that would receive "Aa" category credit ratings. The "Phase I" financing would include only a refunding of those COPs which could be economically refunded. The three Phase I refunding candidates are summarized below: Bond Par Amount Fixed/ Current Series Outstanding Variable Lien 1990 Series A $83.300mm Dailies Junior 1991 Series B $18.695mm Fixed Rate Closed Senior 1992 Series C $86.200mm Dailies Junior Note that completion of Phase l would eliminate all of the prior "Closed Senior Lien" and "Junior Lien" financings, creating an opportunity to modernize roughly 50% of the District's outstanding COPs. Phase II: This component would seek consents from the various parties to the outstanding Series 1992 and 1993 COPs to certain amendments. If acceptable to all of the required consent parties, the amendments would complete the process of modernizing all of the District's COP legal documents, including elimination of the final financing lien created under the prior COP financings. While the success of Phase II was not guaranteed, the objective was to achieve 100% of the stated restructuring goals while avoiding the high cost of a non- economic refunding. The two-phase strategy was approved by the FAHR Committee in November, 1999 with PaineWebber appointed to serve as Senior Manager/Remarketing Agent for the proposed refunding required by Phase I, while Orrick, Herrington & Page 3 of 7 2000 Debt Restructuring Page 4of7 September 13, 2000 Sutcliffe was appointed to serve as Bond Counsel. Hawkins Delafield & Wood joined the team in December as Underwriter's Counsel. OVERVJEW OF SIGNIFICANT EVENTS During January and February, the finance team developed initial drafts of modernized refunding COP legal documents along with updated disclosure materials. In addition, rating agency meetings were scheduled and the team began developing a comprehensive presentation for the rating agencies. In mid-March, drafts of these documents were distributed to the rating analysts to solicit their preliminary feedback. In mid-April, rating analysts from each of the three major municipal bond rating agencies (Moody's, Standard & Poor's, and Fitch) visited the District's Fountain Valley site. Each of the agencies was given a tour of Plant #1 followed by a two-hour presentation highlighting the major operational and financial aspects of the District. As planned, during March and April, the finance team dual-tracked Phase II by initiating conversations with all of the consent parties to both the 1992 and 1993 COPs. The principal consent parties included the following: Partv 1992 COPs 1993 COPs Certificate Insurer Ambac Ambac Swap Counterparty AIG SocGen Liquidity Provider Barclay's SocGen Trustee State Street Chase Manhattan Remarketing Agent PaineWebber Paine Webber Certificate Holders Various Various In late April, based upon conversations with the rating agencies and the principal consent parties, the finance team recommended a strategy of linking Phase I & Phase II. This strategy built upon the perception of the consent parties that they would benefit from the District's success in modernizing its documents and securing "Aa" category ratings. At the same time, the rating analysts indicated that "Aa" catego.ry ratings would be easier to achieve if all of the District's COPs (including the outstanding 1992 and 1993 issues) were modernized. In early May, the team solicited bids from qualified banks to provide liquidity support for the Series 2000 Refunding COPs. Ultimately the District received· six bids including a winning bid of 14 bps. The success of this bid process was attributable to a comprehensive bid package in conjunction with the modernized legal structure and the expected receipt of "Aa" category ratings. Page 4 of 7 2000 Debt Restructuring Page 5of7 September 13, 2000 From late May through mid-August, the finance team devoted a significant effort to negotiating and implementing the amendment consent strategy. This required, in part, maintaining the essential 0 business deal" underlying each of the original 1992 and 1993 COPs, while effectively substituting new legal documents that would conform to, and be on a parity of lien with, the proposed new Series 2000 Refunding COP legal structure. As part of this process, in an effort to further streamline and simplify the new COP legal structure, Bond Counsel created a new "Master Agreement" which encapsulates the District's principal COP legal covenants in one place. To assure the consent of the 1992 and 1993 Certificate holders, PaineWebber repurchased 100% of those outstanding obligations. PaineWebber was then able to consent to the required changes, before reoffering the amended 1992 and 1993 COPs to new investors. Other parties to the amendments agreed to offer their consents in return for recovery of their legal and out-of-pocket expenses -a cost of less than $100,000. Compared to the potential $10 million PV cost of refunding the 1992 and 1993 COPs, or the ratings and marketing implications. of leaving those transactions outstanding in their original form, the amendment consent strategy proved to be an extremely cost effective means of achieving the District's goals. Importantly, 100% of the amendment costs, as well as all costs related to the refunding , were more than offset by expected savings relating to lower credit enhancement costs. In fact, expected net present value savings exceed $1.2 million. As noted above, Phase I and Phase II closed simultaneously and became effective on August 31, 2000. As of that date, the District's prior 1990 Series A, 1991 Series B, and 1992 Series C COPs all were defeased and replaced by a new consolidated Series 2000 financing. At the same time, the amendments to the outstanding Series 1992 and Series 1993 COPs took effect, completing modernization of the District's COP legal structure. ACCOMPLISHMENTS With closing of the Phase I and Phase II components on August 31, 2000, the District successfully accomplished each goal that it had set for itself in the fall of 1999. • Achieved formal ratings of "AA" from S&P, "Aa3" from Moody's, and "AA" from Fitch • Consolidated three prior liens into one single lien, simplifying the overal.I structure for credit analysts and potential investors • Created new modernized conforming documents for all three outstanding deals (1992, 1993 & 2000) incorporating desired flexibility and operational efficiencies Page 5 of 7 2000 Debt Restructuring Page 6 of 7 September 13, 2000 • Summarized each of the three issues with new disclosure documents, offering investors an opportunity to review the specifics of each restructured series • Levelized the aggregate net debt service to provide more stable revenue requirements from one fiscal year to the next (see charts on page 7) • Created an expected $1,404,000 or net present value savings relative to the cost of the prior Series A & C bank facilities • Series B refunded for expected PV savings of $308,000 • Created $1,229,000 of total expected net present value savings (net of all refunding and amendment consent costs) when the refunding of Series A, B and C are considered in aggregate • Reimbursed the District's reserves for approximately $32,700,000 of prior capital expenditures previously funded from District cash • Resulted in lower aggregate remarketing fees (inclusive of the additional new COPs related to the reimbursement financing) relative to the previously outstanding COPs The resulting three series of COPs (1992, 1993 & 2000) were placed and/or reoffered to investors on August 31 In an aggregate par amount of $386,370,000. To accommodate the future flexibility to reoffer the $218,600,000 of Series 2000 COPs through more than one remarketing agent, this new series was structured with two separate series ($109,300,000 each) and three separate term bonds. While the pending holiday weekend, limited the initial number of variable rate buyers in the market. the initial placement included nine separate institutional purchases, primarily money market funds (the most common buyer for variable rate tax-exempt COPs ). SK \\radon\di:ita 1 \wp.dta\fln\21 O\kozak\Flnancing Summary.doc Page 6 of 7 2000 Debt Restructuring Page 7of7 September 13, 2000 Net Debt Service* Profile Before Restructuring 45.0 40.0 35.0 30.0 25.0 20.0 . 15.0 10.0 5.0 0.0 $(Millions) 0 Closed Sr. Lien (Series B) •Junior Lien (Series A & C) •Series 1993 D Series 1992 ~ ~ ~ ~ ~ ~ 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Fiscal Year Net Debt Service* Profile After Restructuring 45.0 40.0 35.0 30.0 25.0 20.0 15.0 $(Millions) 10.0 ·1 5.0 ~ 0.0 -I I I I l •Net of debt se/Vice reserve fund earnings and any releases. Page 7 of 7 -- -eries 2000 I eries 1993 eries l9~ I t r FAHR COMMITTEE Meeting Date To Bd. of Dir. 09/13/00 09/27/00 AGENDA REPORT Item Number Item Number FAHR00-64 Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Steve Kozak, Financial Manager SUBJECT: TREASURER'S REPORT FOR THE MONTH OF AUGUST 2000 GENERAL MANAGER'S RECOMMENDATION Receive and file Treasurer's Report for the month of August 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 !!Q 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) H;l\NP,dt:ala~\F"HRIF,AHR2000.2000 Agendlll Re~IFAHR00-64.doe RIMsed: 8/20/98 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 August 31, the District received $32.67 million as the capital reserves reimbursement portion from the issuance of the Series 2000 COPs. The funds were deposited in the Long-Term 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. F.unClsfAccounb.- 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. H:\wp.dtalagenda\FAHRIFAHR200Cta000 Agenda Reportg\FAHR00-64.doc R~sed: 8l20l98 $ 2,180,873 369,024 2,519,000 33,255,555 369,973,951 1,692 32,137,461 8,000 $440,445,556 6.5 5.8 6.2 5.4 5.8 6.4 Page2 ATTACHMENTS 1. Monthly Investment Reports 2. Monthly Transaction Report H:\wp.clta\agendalFAHRIFAH~ Agenda Reports'f'AHRaMW.doc ReviMd: l!/20/98 Page3 Prepared by Finance, 09/12/2000, 10:24 AM Monthly Treasurer's Report District Fund Balances $400,000,000 -J---J,~~l---~~M------- $350,000,000 -l--t~~---~~!l----~~~--~~~---4 ~- $200' 000 ,000 +-------t'X"X":i<"x">l---OO<XX)+---;;x;:Q<X)i----bOO<XXl----nO<X')('}f-----PVVC..tv'J--~ $150 I 000 I 000 +---f>00~----10<XXX>t-----OO<XX>i---~O('X._X'}-----r>O('X)6f-------1>~XXJ•--I $100 I 000, 000 -f-----t'.')66~---t:'.XXXX)i----{)CQO(~----i>C<'.)O<X}----t)O(X~--~~XXJ.--1 $50,000,000 +--f>00~----10<XXX>t-----OO<XX>i---~O(XX1-----r>~)6f-------1>Q<.X.XXJ---I Mar, oo Apr, 00 May, 00 E3 PrMCO -Long-term &! Debt Service Reserves IJ Bank Accts El Dist 11 GO Bond Fund G:\excel.dta\fin\2220\geggi\Finance\monthly treasurers report Jun,00 la PIMCO -Short-term CDLAIF •Petty Cash Jul, 00 Aug,00 MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ending 31 August 2000) Liquid Operati11g Monies (603) 15.1.l PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate; • PIM CO I • Mellon Historical Cost: •· PlMCO • Mellon 15.1.2 MODIFIED DURATION Of Portfolio: Of Index: 15.1.3 1 % INTEREST RA TE CHANGE Dollar Impact (gain/loss) of 1% Change: 15.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: (see attached schedule) 15.J.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.J.8 INVESTMENT POLICY COMPLIANCE "ln Compliance" 15.l.9 PORTFOLlO PERFORMANCE Total Rate of Return (%) by Period: 1 Month: 3 Months: J2 Months: Year-to-Date: Commelltary $33,245,298 $33,255,555 $33,233,132 $33,233,027 0.23 0.20 $77,479 0% 79% "AA+" See Note See Note Portfolio 0.57 1.72 6.26 4.35 • Interest rates al the short·end of the yield curve rose in August (1tm1e-month T-Bills up 12 basis points to 6.30%), while the long-end posted decreases (30-yearTreasuries down 12 basis p<Jints to 5 67%). The Liquid portfolio outperfonned its benchmark by 7 basis points in August, and outpcrfonned by 54 basis points year-to-date. • PIMCO's emphasis on commercial paper and short-t.cnn notes enhanced returns. .Index 0.50 1.45 5.51 3.81 • NOTE: A Finova Capital corporate note, $475,000 par amount, 6.375% coup<Jn, maturing on October 15, 2000 (currently rated Bal by Moody's), and an !Cl Wilmington debenture, $1,000,000 par amount, 9.5% coupon, maturing on November 15, 2000 (currently rated Baa2 by Moody's), are held in the Liquid Operating Monies portfolio. H.I .IFJNANCE\, IREVIS£D UQ080/I Rl'T MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ending 31 August 2000) Long-Term Operating Monies (203) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO • Mellon Historical Cost: • PIM CO • Mellon 15.1.2 MODIFIED DURATION Of Portfolio: Of Index: 15.1.3 I% INTEREST RATE CHANGE Dollar Impact (gain/loss) of 1% Change: 15.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: (see attached schedule) 15.1.5 PORTFOLIO MATURITY % of Portfolio Maturing within 90 days: 15.l.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: 15.l.7 SECURITIES BELOW "A'' RATING % of Portfolio Below "A": 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" 15.J.9 PORTFOLIO PERFORMANCE Total Rate of Return(%) by Period: 1 Month: 3 Months: 12 Months: Year-to-Date: -- Commentary $370,460,222 $369,973,95] $369, I 06,400 $370,610,816 2.02 2.37 $7,564,960 ' 0% 45% "AA+" 0% Yes Portfolio Index I 1.02 0.93 2.95 2.99 6.84 5.96 5.24 4.68 • While three-month yields rose during August (90-day T-Bills up 12 basis points to 6.30%), yields on longer maturities declined (5-year Treasury Notes down 18 basis points to 5.96%). • The Long-Tenn portfolio oulperfonned its benchmark by 9 basis points in August. and has outperfonned by 56 basis points year-to-date. • PIMCO's decision to underweight corporate notes improved portfolio returns, as corporates underperfonned other sectors, PIMCO's decision to hold inflation-protection bonds slightly detracted from returns as this segment underperfonned Treasuries. Holdings of mortgage backed securities enhanced relative returns as this sector oucperfonned Treasuries. H:\ lFl/'IANCEIUOI l/IEYIS£D ~ T/1800.RPT @ ORANGE COUNTY SANITATION DISTRICT PAGE: ., BASE: USD NET ASSET SECTOR SUMMARY OCSF075/1102 31-AUG-2000 FINAL LIQUID OPER-PIMCO %OF UNREALIZED PORTFOLIO DISTRIBUTION COST MARKET VALUE TOTAL GAIN/LOSS CASH & CASH EQUIVALENTS UNITED ST A TES COMMERClAL PAPER -DTSCOUNT 4,929,470.50 4,929,470.50 14.63% 0.00 FEDERAL HOME LOAN MORTGAGE -LESS 4,737,667.75 4, 744,88 t .67 14.08% 7,213.92 FNMA ISSUES -LESS THAN !YR 6,001 ,440.50 6,001,440.50 17.81 % 0.00 FED HM LOAN BNK -LESS THAN 1 YR 1,280,435 ,00 1,280,435.00 3.80% 0.00 MUTUAL FUNDS 91,794.08 9J ,794.08 0.27% 0.00 TOT AL UNITED STATES 17,040,807-83 17,048,021.75 50.60% 7,213.92 TOTAL CASH & CASH EQUIVALENTS 17 ,040,807 .83 17,048,021.75 50.60% 7,213.92 FIXED INCOME SECURITIES UNITED STATES U.S. GOVERNMENTS 6,526,781.25 6,573,204.00 19.51% 46,422.75 U.S. AGENCIES 270,789.06 272,379.25 0.81% 1,590.19 ABS: CAR LOAN 905,9l3.00 900,288.00 2.67% -5,625.00 BANKING & FINANCE 6,557,951.05 6,556,071.65 19.46% -1 ,879.40 lNDUSTRlAL 922,860.00 904>950.00 2.69% -17,910.00 UTIUTY -GAS 495,845.00 498,070.00 1.48% 2,225.00 UTILITY • TELEPHONE 512,080.00 502,570.00 1.49% -9,510.00 TOT AL UNITED ST A TES 16,192,219.36 16,207,532.90 48.10% 15,313.54 TOTAL FIXED INCOME SECURITIES 16,192,219.36 16,207 ,532.90 48.10% 15,313.54 OTHER PORTFOLIO ASSETS PAY ABLES/R.ECEIV ABLES 438,342.82 438,342.82 l.30% 0.00 TOTAL 438,342.82 438,342.82 1.30% 0.00 TOTAL OTHER PORTFOLIO ASSETS 438,342.82 438,342.82 1.30% 0.00 NET PORTFOLIO ASSETS 33,671,370.01 33,693,897.47 100.00% 22,527.46 JI -Sep-2000 12:05:34 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 'J BASE: USD NET ASSET SECTOR SUMMARY OCSF07522202 31-AUG-2000 FINAL LONG TERM OPER-PIMCO %OF UNREALIZED PORTFOLIO DISTRIBUTION COST MARKET VALUE TOTAL GAlN/LOSS CASH & CASH EQUN ALENTS RECEIVABLES 51,269.55 51,269.55 0.01% 0.00 PAYABLES -46,096,562.50 -46,096,562.50 -l2.33% 0.00 TOTAL -46,045,292.95 -46,045,292. 95 ·12.31% 0.00 UNITED STA TES COMMERCIAL PAPER -DISCOUNT 49,064,618.50 49,064,618.50 13.12% 0.00 FEDERAL HOME LOAN MORTGAGE -LESS 15,393,223.54 15,393,223.54 4.12% 0.00 FNMA ISSUES -LESS THAN 1 YR l,8G9,5J2.39 1,869,512.39 0.50% 0.00 PED HM LOAN BNK -LESS THAN IYR 2,662,092.00 2,662,092.00 0.71% 0.00 REPURCHASE AGREEMENTS 32,600,000.00 32,600,000.00 8.72% 0.00 MUTUAL FUNDS 263,120.69 263,120.69 0.07% 0.00 TOT AL UNITED STATES 101,852,56 7 J 2 101,852.567.12 27.23% 0.00 TOTAL CASH & CASH EQUIVALENTS 55,807,274.17 55,807,2 74.17 14 .. 92% 0.00 FIXED INCOME SECURITIES UNITED STATES U.S. GOVERNMENTS 46,808,923.45 46,769,983.42 12.51% -38,940.03 U.S. AGENCIES 100,668,301.01 100,967,538.15 27.00% 299,237.14 GNMA SINGLE FAMILY POOLS 32,194,687.50 32, 199,250.00 8.61% 4,562.50 ONMA MULTI P AMIL Y POOLS 14,252,314. 76 14,294,4] 5.22 3.82% 42,100.46 FHLMCPOOLS 8,461,865.25 8,301,230.24 2.22% -160,635.01 FHLMC MULTICLASS 5,085,247.48 4,981,351.96 1.33% -103,895.52 ASSET BACKED SECURITIES 16,455.42 16,434.86 0.00% -20.56 ABS: HOME EQUITY 241 ,885.92 240,826.46 0.06% -1,059.46 OTHER GOVERNMENT OBLIGATIONS 2,485,040.44 2,476,594.12 0.66% -8,446.32 MUTUAL FUNDS l,000,000.00 991,400.00 0.27% -8,600.00 BANKING & FINANCE 70,215,542.8 1 69,942,549.43 18.70% -272,993.38 INDUSTRIAL 7,126,189.00 6,883,738.40 1.84% -242,450.60 UTILITY -ELECTRIC 8,096,080.00 7,953,180.00 2.13% -142,900.00 UTILITY -OAS 7,300,000.00 7,302,263.00 1.95% 2,263.00 UTlLlTY -TELEPHONE 7,497,255 .00 7 ,360, 200. 00 1.97% -137,055.00 G, 0. C1TY/MUNI 1,723,280.00 I, 786,200.00 0.48% 62,920.00 HOSPITAL 1,630,474.05 1,699,521.55 0.45% 69,047.50 1 J-Sep-2000 12:06:54 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 2 BASE: USD NET ASSET SECTOR SUMMARY OCSF07522202 31-AUG-2000 FINAL LONG TERM OPER-PIMCO %OF UNREALIZED PORTFOLIO DISTRIBUTION COST MARKET VALUE TOTAL GAIN/LOSS TOT AL UNITED ST ATES 314,803,542.09 314, 166,676.81 84.00% -636,865.28 TOTAL FIXED JNCOM~ SECURITfES 314,803,542.09 314,166,676.81 84.00% -636,865.28 OTHER PORTFOLIO ASSETS PAYABLES/RECEIVABLES 4,017,411.13 4,017,41 l.13 1.07% 0.00 TOTAL 4,017,41 UJ 4,017.411.13 1.07% 0.00 TOTAL OTHER PORTFOLIO ASSETS 4,017,411.13 4,017,411.13 1.07% 0.00 NET PORTFOLIO ASSETS 374,628,227.39 373,991,362.11 100.00% -636,865.28 11-Sep-2000 12:06:54 Executive Workhench YLDANAL YIELD ANALYSIS PAGE l OCSF07511102 2000/08/31 RUN DATE 09/07/00 DISTRICT: LIQUID OPERATING RUN TIME 14 .02,38 :::.==-=:::.---------=::==-=:::;;=== ----==:== PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY IO SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 't TOTAL ------------~---~---------------------------------~-------------------- CASH & CASH EQU IVALENTS 91, 794 .08 DREYFUS TREASURY CASB MGMT .000 6.297 AAA 100.000 91, 794 .08 .53 996085247 AAA 91,794.09 .28 400,000.00 FEDERAL BOME LN MTG CORP DISC 6.505 .000 P-1 99.158 396,631.67 2.32 3l3396.K93 MAT 10/17/2000 A-1+ 396,631.67 1.19 1,300,000.00 FEDERAL HOME LN MTG CORP DISC 6.507 .ooo P-1 99.677 1,288,587 .08 7.60 313396G56 MAT 09/19/2000 A-1+ 1,295,801.00 3.90 s, 600, ooo .·oo FEDERAL NATL MTG ASSN DISC NTS 6. 541. .ooo P-1 98.373 5 1 508,909.00 32. 31 313588M93 MAT 11 /02 /2000 A-1+ S,508,909.00 16.57 1,300,000.00 FEDERAL HOME LN BK CONS DISC 6 .549 .000 P-l .98.495 1,280,435.00 7.51 313384F20 MAT 09/08/2000 A-1+ 1,280,435.00 3.85 2,100,000.00 FEDERAL HOME LN MTG CORP DISC 6 .561 .ooo P-1 98.457 2,067,592.33 12 .12 313396F81 MAT 09/14/2000 A-1+ 2,067,592.33 6.22 900,000.00 NIKE INC DISC 6 .579 .ooo P-1 99.951 890,560.50 5.22 6541D2J66 09/06/2000 890,560.50 2.68 800,000.00 BECTON DICKINSON DISC 6.581 .000 P-1 98 .915 791,320.00 4 .64. 0758BRJ89 09/08/2000 791,320.00 2.38 200,000.00 FEDERAL NATL MTG ASSN DISC NT 6.586 .ooo P-1 98.700 197,400.00 1.15 313588F91 MAT 09/15/2000 A-1+ 197,400.00 ,59 1,000,000.00 FEDERAL HOME LN MTG CORP DISC 6 .590 .ooo P-1 98.486 984,856.67 s . 77 313396G72 MAT 09/21/2000 A-1+ 984,856.67 2.96 600,000.00 HONEYWELL INTL DISC 6.638 .ooo 98 .367 590,205.00 3 . 4.6 43851RLMO 11/21/2000 590,205.00 1. 77 900,000.00 DAIMLERCHRYSLER DISC 6 .640 .000 98.492 886,429.50 5.19 2338EOJS6 09/26/2000 886,429.50 2.67 900,000.00 GOLDMAN SACHS LP DISC 6 . 652 .ooo P-1 .98.310 884,794 .50 5.19 38142TKJ3 10/18/2000 884,794.50 2.66 300,000.00 FEDERAL NATL MTG ASSN DISCOUNT 6 .673 .ooo P-1 98.377 295, 131.50 l. 73 313588K46 MAT 10/12/2000 A-1+ 295, 131. 50 .89 YLDANAL YIELD ANALYSIS PAGE 2 OCSF07511102 2000/08/31 RUN DATE 09/07/00 DISTRICT: LIQUID OPERATING RUN TIME 14 .02. 38 ----=-=:z=.z=----== ea:::swwam••=::::::t PAR VALUE Y'.I'M AT CURRENT MOODY MARKET TOT.A.I. COST/ \ TYPE SECOlUTY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE \ TOTAL --~--------------------------------------------------------------------------- 900,000.00 MOTOROLA INC DISC 6.693 .000 P-1 98.462 886I161. 00 5.19 62008AJL4 09/20/2000 886,161.00 2.66 ------------------------------------- TOTAL CASfl & CASfl EQUIVALENTS 6 .495 .055 17,040,807.83 100.00 17 ,048,021. 75 Sl.27 FIXED INCOME SECURITIES 6,600,000.00 0 S TREASURY NOTES 5.205 4.016 AAA 99.594 6, 526 ' 781. 25 40.55 9128274T6 04.000\ 10/31/2000 DD 10/31/98 AAA 6,573,204.00 19. 77 900,000.00 FORD MTR CR MTN f TR 00538 6.312 7.018 A2 100.032 905,913,00 5.55 345402Yl<l 7 .020\ 10/10/2000 DO 10/10/95 A 900,288.00 2. 7l 900,000.00 GENERAL MTRS CORP NTS 6.425 9.572 A2 100.550 922,860.00 5.58 370442Afl8 9.625\ 12/01/2000 OD 12/01/90 A 904,950.00 2. 72 i5o,ooo.oo MORGAN J P & CO MTN SR 00043 6.430 6.128 Al 99.953 149,625.00 .92 61687YBUO 6.125\ 10/02/2000 DD 10/02/97 AA 149,929.50 .45 500,000.00 GTE CORP DEB 6.669 9.327 A2 100.514 512,080.00 3.10 362320AQ6 9.375\ 12/01/2000 A+ 502,570.00 1.51 475,000.00 FINOVA CAP CORP 6 .820 6.426 BAl 9!>. 204 473,031.25 2.90 318074AF8 6.375\ 10/15/2000 DD 10/11/95 BBB-471,219.00 1. 42 175,000.00 CIT GROUP HLDGS MTN f SR 00010 6 .862 5.668 Al 99.248 173,383.00 1.07 12560QA1<5 S.625\ 02/02/2001 00 02/02/96 A+ 173,684.00 .52 soo,000.00 UGI UTILS INC MTN JTR 00006 6 .999 6.194 Al 99. 614 495,845.00 3.07 902690AF6 6.170\ 03/06/2001 DD 03/06/98 A-498,070.00 1.50 250,000.00 CHASE MANHATTAN CORP NEW SOB 6 .984 9.214 Al 101.75Q 254,730.00 1. 56 16161ABL1 9.375\ 07/01/2001 DO 07/01/89 A 254,375.00 .76 275,000.00 FEDERAL HOME LN BK CONS BOS 7.058 5.189 AAA 99.047 270,789.06 1.68 3l33H6EA2 5.140\ 05/02/2001 DD 11/02/98 AAA 272,379 .25 .82 500,000.00 BANPONCE FINL CORP MTN f00081 7 .316 6.784 A3 99.497 496,495.00 3.06 06670QDJ4 6.750% 08/09/2001 DD 08/09/96 BBB+ 497,485.00 1.50 1,000,000.00 ICI WILMINGTON INC GTD NT 7 .344 9.474 BAl\2 100.270 l.,008,480.00 6.18 449909AA8 9.500% 11/15/2000 BBB+ 1,002,100.00 3.02 YLDANAL OCSF075lll02 DISTRICTi LIQUID OPERATJ:NG YIELD ANALYSIS 2000/08/31 PAGE RUN DATE RUN TIME 3 09/07/00 l 14.02.38 =~=--===-=---===~ =====-------------=====------------::-""-====== -:;;-===.::::=====- PAR VALUE SECURITY ID SECURITY DESCRIPTION l,000,000.00 ARISTAR INC SR NT 040420ATS 7.750\ 06/15/2001 DD 07/07/94 i,0001 000.00 FLEE~/NORSTAR FINL GROUP INC 339018AD5 9.900t 06/15/2001 DD 06/24/91 575,000.00 FCC NATL BK DE MTN I TR 00284 30241NMV4 6.375\ 03/15/2001 DD 03/14/96 420,000.00 BANKAMERICA CORP SR NT 066050CJ2 6.650% 05/01/2001 DD 05/01/96 1,000,000.00 DONALDSON LUFKIN & JEN TROOOll 25766CAL8 6.110% 05/15/2001 DO 05/27/98 TOTAL FIXED INCOME SECURITIES 'l'OTAL YTM AT CURRENT MOODY MARXET BOOK YIELD S-P PRICE 7.346 7.740 A3 100.1 27 A- 7.365 9. 712 A3 101.933 A- 7.426 6.390 AA2 99.765 AA- 7 .441 6.663 AA2 99.812 A~ 7 .530 6.152 A3 99.322 A- ----------- 5.952 5.577 ------------ 6.145 3.061 TOTAL COST/ MARXET VALUE 1,003,830.00 1 1 0011 270.00 1,024,020.00 1,019,330.00 570,262.00 573,648.75 417,034.80 419,210.40 987,060.00 993,220.00 ------------- 16,192,219.36 16,207,532.90 ------------ 33,233,027.19 33,255,554.65 % TYPE % TOTAL 6.17 3.01 6.28 3.07 3.53 l.72 2.58 l. 26 6,12 2.99 100.00 48.75 100.00 100.00 YLDANAL YIELD ANALYSIS PAGE 4 OCSF07522202 2000/08/31 RUN DATE 09 /07 /00 DISTRICT: LONG-TERM OPERATING RUN TIME 14.02.38 ==· == PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ t TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL -----------------~----------------------------~~ ----------------------------------- CASH & CASH EQUIVALENTS 263,120.69 DREYFUS TREASURY CASH MGMT .ooo 6.297 AAA 100.000 263,120.69 .25 .996085247 AAA 263,120.69 .06 32,600,000.00 GOLDMAN SACHS LP .REPO 6 .400 6. 400 100.000 32,600,000.00 32.00 99372W648 06.400% 09/01/2000 DO 08/31/00 32,600,000.00 7.84 3,300,000.00 FEDERAL HOME LN MTG CORP DISC 6 .462 .000 P-1 99.040 3,268,320.00 3.20 3133961<93 MAT 10/17/2000 A-1+ 3,268,320.00 ,79 1,200,000.00 FEDERAL HOME LN MTG CORP DISC 6 .515 .000 P-1 .98.696 1,184,353.67 1.16 313396J53 MAT 10-5-2000 A-lt 1,184,353.67 .28 600,000.00 FEDERAL liOME LN MTG CORP DISC 6.531 .000 P-1 98.446 590,676.50 .57 3133961<44 td.A'1' 10/12/2000 A-l+ 590,676.50 .14 100,000.00 FEDERAL NATL MTG ASSN DISCOUNT 6 .560 .ooo P-1 98.475 689,323.06 .67 313588H65 MAT 09/28/2000 A-:U 689,323.06 .17 1,200,000.00 FEDERAL NATL MTG ASSN DlSC 6.568 .000 P-1 98.349 1,180,189.33 1.15 313588L37 MAT 10/19/2000 A-1+ 1,180,189.33 .28 11,400,000.00 MOTOROLA CR CO DISC 6.591 .ooo P-1 99. 915 11,276,310.00 11.07 620071\.J84 09/08/2000 ll,276,310.00 2. 71 200,000.00 AMERICAN (['EL & TL DISC 6 .594 .000 P-1 98.877 191,154.n .19 03018AJ69 09/06/2000 197,754.22 .05 10,500,000.00 FEDERAL HOME LN MTG CORP DISC 6.610 .ooo P-1 98.570 10,349,873.37 10.16 313396F81 MAT 09/14/2000 A-1+ 10,349,873.37 2.49 6,200,000.00 GENERAL ELEC CAP DISC 6.632 .ooo P-1 98.458 6,104,408.06 5.99 36959HKC0 .10/12/2000 6,104,408.06 l.47 2,300,000.00 BELL ATLNTIC FINL DISC 6.637 .000 P-1 98.386 2,262,869.69 2 .22 07785AL19 11/01/2000 2,262,869.69 .54 1,000,000.00 HONEYWELL INTL DISC 6. 638 .000 98.367 983,675.00 .96 4J951RLMO ll/Zi/2000 983,675.00 .24 7,400,000.00 DAIMLERCHRYSLER DISC 6.640 .000 99.492 7,288 ,420.33 7.15 2JJ8EOJS6 09/26/2000 7,288,420.33 1. 75 YLDANl\L YIELD ANALYSIS PAGE 5 OCSF07522202 2000/08/31 RUN DATE 09/07/00 DISTRICT: LONG-TERM OPERAT:rNG RUN TIME 14.02 .38 =-==---~rn=~====-=-=== ~==::;c:!c;~ PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ t TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-..P PRICE MAR.KET VALUE t TOTAL ---------------------------------------------------------------------- 1,900,000.00 DU PONT DE NE~OUR DISC 6.646 .000 P-1 97.957 1,861,175.09 1. 82 26354AM68 12/06/2000 1,861,175.09 .45 5,600,000,00 ALUMINUM CO AMER DISC 6.665 .ooo P-1 98. 721 s, 520, 351.11 5.42 02225AJ6C) 09/06/2000 :S,528,351.11 1.33 1,000,000.00 ALUMINUM CO AMER DISC 6 ,680 .000 P-1 98 .. 358 983,575.00 .96 02225AJL7 09/20/2000 983,575.00 .24 12,800,000.00 USAA CAP CORP DISC 6 .686 .000 P-1 98.266 12,578;080.00 12.34 90328AJJ3 09/18/2000 12,578,080.00 3.02 2,100,000.00 FEDERAL HOME LN BK CONS DISC 7 .430 .ooo P-1 98.596 2,662,092.00 2.61 313384F79 MAT 09/13/2000 A-1+ 2,662,092.00 .64 ---------~----------------------- TOTAL CASH & CASH EQU1VALENTS 6. 46 5 3.360 101,852,567.12 100.00 101,852,567.12 24.49 FIXED INCOME SECURITIES 301,165.25 FHLMC GROUP .78-6064 .000 6.476 AAA 98.047 293,824.36 .09 31348SWZ3 6,384% 01/01/2028 DO 12/01/97 AAA 295,283.49 .07 1,241,192.29 GNMA II POOL f 0080395 .ODO 6 .516 AAA 99.750 1,229,943.98 .39 36225CNM4 6.500% 04/20/2030 DD 04/01/00 AAA 1,238,089.31 .30 9,958,312:.03 GNMA II POOL J080408X .000 6.517 AAA 99.734 9,857,172.92 3.16 36225CN28 6.500% 05/20/2030 DD 05/01/00 AM 9,931,822.92 2.39 8,820,166.00 US TREASURY INFLATION INDEX NT 3. 716 3.640 AAA 99.594 8,790,746.19 2.79 9128273A8 3.625% 07/15/2002 DD 07/15/97 AAA 8,784,356.13 2.11 25,008,130.00 US TREASURY INFLATI ON INDEX NT 3.822 3.502 AAA 96.375 24,161,306.16 7. 67 9128272M3 3.375% 01/15/2007 DD 01/15/97 AAA 24,101,585.29 5.79 1,879,09]..40 SALOMON SMITR BARNEY HLDGS INF 4 . 714 3. 705 AA3 98.522 1,845,190.61 .58 79549BBG1 3.650% 02/14/2002 OD 02/14/97 A 1,851,318.43 .45 11500,000.00 ASSOCIATES CORP N A SR NTS 5.650 6.588 Al 9'8. 661 1,5431 215.00 .47 046003HY8 6.500% 07/15/2002 OD 07/11/97 A+ 1,479,915.00 .36 3,950,000.00 GMAC NTS 5.152 6.846 A2 100.220 3,918,768.50 1.26 370425QVS F'LTG RT 08/18/2003 OD 08/17/98 A 3,958,690.00 .95 YLDANAL YIELD ANALYSIS PAGE 6 OCSF07522202 2000/08/31 RON DATE ()9/07/00 DISTRICT: LONG-TERM OPERATING RUN TIME 14.02.38 =----------==-=-====- PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ \ TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MAR.Kl:T VALUE % TOTAL ---------------------------------------------------------------------------------------- 1,000,000.00 HELLER FINANCIAL INC NTS 5.760 5.859 AJ 98. 138 999,730.00 .31 4 2333HI<.TO 5.750\ 09/25/2001 DD 09/25/98 A-981,380.00 .24 1,000,000.00 HOUSEHOLD FIN MTN SR #00570 s . 775 5.732 A2 100.207 99.9,188.90 .31 44181KZT4 FLTG RT 08/01/2001 DD 09/04/98 A 1,002,010.00 .24 21 005,000.00 SEARS ROEBUCK ACCEP CORP MTN 5.804 6.676 A3 97.968 2,060,739.00 .62 81240QGW6 6.540% 02/20/2003 DD 02/20/97 A-1,964,258 .40 ,47 3,000,000.00 SEARS ROEBUCK ACCEP CORP MTN 5.849 6.704 A3 98.890 3,073,170.00 .94 81240QJA1 6.630% 07/09/2002 DD 07/09/97 A-2,966,700.00 • 71 2,000,000.00 BANI<ERS TR NY CORP GLOBAL NT 5.881 6.794 A1 100.363 1,992,800.00 .63 066365DW4 F'LTG RT 05/11/2003 DD 05/11/98 A-2,007,260.00 .48 230,431.20 FHLMC MULTICL MTG P/C 1574 E 5.912 5.932 9.9.468 230,107.15 .07 Jl33T0205 5.900\ 06/15/2017 229,205.31. .06 13,800,000.00 U S TREASURY NOTES 5.940 S.964 AAA 100.609 13,856,871.10 4 .41 9l2827SN8 06.000% 08/15/2009 DD 08/15/99 AAA 13,894,042.00 3.34 1,945,000.00 NEW JERSEY HLTH CARE SER B 5.942 5.436 AAA 87.379 ;l,630,474.05 .54 64579ERMO 4.750% 07/01/2028 DD 12/01/98 AAA 1,699,521.55 .41 15,000,000.00 FEDERAL NATL MTG ASSN MTN 5.981 5.869 AAA H.172 14,955,300.00 4 .73 31364G2VO 5.820% 07/19/2001 .D.D 07/19/99 AAA 14,875,800.00 3.58 2,500,000.00 MBRRlLL LYNCH NOTES 5,995 61432 AA3 99.107 2,526,725.00 . 78 59018SlCP4 6.375% 10/01/2001 DD 10/03/97 AA-2,477,675.00 .60 2,000,000.00 MONTGOMERY ALA BMC SER B 6 .001 5 .598 AAA 89.310 1,723,280.00 .56 613041G.H9 5.000% 11/15/2029 DD 12/01/99 AAA 1,786,200.00 .43 1,500,000.00 BELLSOUTH TELECOMMUNICATIONS 6 .010 6 .114 AA2 98.136 7,497,255.00 2 .34 079867AXS 6.000% 06/15/2002 OD 06/15/98 AAA 7,360,200.00 1. 77 2,490,390.89 STUDENT LN MKTG assN 98-2 Al 6 .026 6.520 MA 99.446 21 485-1 040.44 .78 78442GBA3 FLTG RT 04/25/2007 DD 06/18/98 AAA 2,476,594.12 .60 14,500,000.00 COMMIT TO PUR GNMA SF MTG 6 .049 6.771 AAA 96.000 131901 1875.00 4.43 01N062698 6.500% 09/15/2030 AAA 13,920,000.00 3.35 12,500,000.00 FEDERAL HOME LN MTG CORP DEBS 6 .062 6.039 AAA 99.355 12,485,625.00 3.95 3134A3ZH1 6.000% 07/20/2001 DD 07/20/99 AAA 12,419,375.00 2.99 YLDliNAr. YIELD ANALYSIS PAGE 7 OCSF07522202 2000/08/31 RUN DA.TE 09/07/00 DISTRICT: LONG-TERM OPERATING RUN THIE 14.02.38 -------===--====-===:---=="'--===---=====c:= === PAR VALUE YTM AT CURRENT MOODY ~ET TOTAL COST/ \ TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE \ TOTAL -------------------------------------~--------------------------------------------- 2,000,000.00 BANKBOSTON CORP SR NTS 6 .133 6.222 A2 98 .438 l,999,600,00 .62 06605TAL6 6 .125% 03/15/2002 DD 03/12/99 A 1,968,760.00 ,47 3,500,000.00 CHRYSLER FINL LLC MTN fTR00615 6 .154 6 .141 Al 100.046 3,498,635.00 ]...11 17120QE80 FLTG RT 08/08/2002 DD 04/08/98 A+ 3,501,610.00 .84 1 ,100,000.00 MORGAN STANLEY MTN iTR 00311 6 .180 6.492 AA3 100.125 1,699,517.20 .54 6l745ENY3 FLTG RT 01/28/2002 DD 01/27/00 AA-1 ,702,125.00 .41 16,455.43 FIFTH THIRD BK AUTO TR 96A CI.A 6.200 6.208 AAA 99.875 16,455.42 .oo 3l677EAA4 6.200\ 09/01/2001 DD 03/15/96 16,434.86 .oo l,OOOr000.00 POPULAR INC MTN tTR 00004 6 .201 6.254 A3 99.140 1,000,000.00 .31 73317PAD1 6.200\ 04/30/2001 DD 04/21/99 BBB+ 991,400.00 .24 2,000,000.00 FORD MTR CR CO TERM ENHANCED 6 .221 6 .213 A2 99.953 1,998,613.60 .63 345397SC8 FLTG RT 08/27/2006 DO 08/2//98 A 1,999,060.00 .48 6,250,000.00 COMMIT TO PUR GNMA SF MTG 6 .24 7 6.419 AAA 93 .468 5 1 835,937.50 1.85 OU!060692 6.00\ 9/15/2030 AAA 5 1 8411750.00 1. 40 3,000,000.00 CONSOLIDATED EDISON N Y DEBS 6 .271 6.181 Al 100.004 2,994,300.00 ,95 209lllCV5 FLTG RT 06/15/2002 DD 06/20/97 A+ 3,000,120.00 .12 241,885.92 GREEN TREE CORP 99-D CL A-1 6.290 6.318 AAA 99.562 241,885.92 .07 3935052Y7 6.290% 10/15/2013 DD 08/26/99 MA 240,826.46 .06 a,soo,000.00 FEDERAL NATL MTG ASSN MTN 6 ,291 6 .275 AAA 99.281 4,488,705.00 1. 42 31364CXV5 6 .230% 03/01/2002 DD 03/03/97 AAA 4,467,645.00 l. 07 3,000,000.00 HELLER FINL MTN #TR 00246 6.300 6.337 A3 99.421 3,000,000.00 .94 42333HLF7 FLTG RT 04/28/2003 OD 04/27/99 A-2,982,630.00 . 72 3,800,000.00 GENERAL MTRS ACCEP UR 00562 6,303 6.275 A2 99,734 3,793,958 .00 1.20 37042WZ1<0 FLTG RT 02/14/2003 DD 02/14/00 A 3,789,892.00 .91 2,851,134.18 FHLMC MULTICLASS CTF El A 6.316 6.612 AAA 98.366 2,854,252.33 .89 3133TCE95 VAR RT 08/15/2032 AAA 2,804,546.65 .67 2,530,644.27 GNMA GTD REMIC TR 2000-9 FH 6.320 6 .295 AM. 100 .404 2,530,644.27 .eo 3837H4NX9 VAR RT 02/16/2030 AAA 2,540,868.07 .61 2,000,000.00 BEAR STEARNS COS INC 6.330 6.863 A2 98.359 2,031,960.00 .62 073902AH1 6.750% 04/15/2003 A 1,967,180.00 .47 YLDANAL YIELD ANALYSIS PAGE 8 OCSF07522202 2000/08/31 RUN DATE 09/07/00 DISTRICT: LONG-TERM OPERA.TING RON TIME 14.02 .38 ~==--:= ------===-==::. PAR VALUE YTM AT CURRENT MOODY MARKET TO'U.L COST/ % TYPE SECURITY TD SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL -------------------------------------------------------------------------------- 3,000,000.00 FORD MTR CR C~ GLOBAL LANDMARK 6.350 6.982 A2 99.796 3,000,000.00 .95 345397SR5 FLTG RT 03/17V2003 DD 03/16/00 A 2,.993,880.00 .72 2,000,000.00 FORD MTR CR CO GLOBAL NTS 6.351 6.861 A2 99.765 1,992,580.00 .63 345397RV7 FLTG RT 02/13/2003 DD 02/13/98 A 1,995,300.00 .48 4,000,000.00 HOUSEHOLD FIN CO MTN 6 .440 6.436 A2 100.064 4,000,000.00 1.27 44181KZA5 FLTG RT 06/24/2003 DD 06/24/98 A 4,002,560.00 .96 2,000,000.00 FHLMC MULTICLASS CTF Tll A6 6. 49 6 6.675 AAA 97.380 2,000,888.00 .61 3133TDPV2 6.500% 09/25/2018 AAA 1,947,600.00 .47 2,000,000.00 BELLER FINANCIAL INC NTS 6.507 7.026 A3 100.089 2,000,000.00 .63 423329BK9 FLTG RT 06/25/2001 DD 06/25/99 A-2,001,790.00 .49 2,471,353.95 FHLMC MULTICLASS CTF SER 1620Z 6 .Sl 2 7.194 AAA 83.403 2,315,213.91 ,65 3133T.17A4 6.000% ll/L5/2023 DD 11/01/93 AAA 2,061,193.25 .so s,000,000.00 SALOMON SB HLDGS MTN 6 .625 6.969 AA3 99 .921 5,000,000.00 l.59 79548,EBE8 FLTG RT 04/28/2003 DD 04/28/00 A 4,996,050.00 1.20 8,042,378.73 FHLMC GROUP fG5-0476 6.628 7.032 AAA 99.547 8,168,040.89 2.54 3128DDQ55 7.000% 02/01/2003 DD 02/01/98 AAA 8,005,946.75 1.92 2,300,000.00 LEHMAN BROS HLDGS MTN TR 0.0333 6.67 2 7. 611 A3 100.887 2,322,379.00 .73 52517PPW5 FLTG RT 04/01/2002 DD 03/29/99 A 2,320,401.00 .56 5 ,000,000.00 LEHMAN BROS HLDGS MTN 6.674 1 .325 A3 100.343 5,000,000.00 1. 59 52517POQ7 FLTG RT 12/12/2002 OD 12/07/99 A 5,017,150.00 1. 21 1,801,673.28 GNMa II POOL t080088M 6. 705 6.342 AAA 100.516 1,841,084.89 .57 36225CC20 VAR RT 06/20/2027 DD 06/01/97 AAA 1,910,969.91 .44 10,500,000.00 FEDERAL HOME LN MTG CORP D~BS 6.711 6.478 AAA 97.250 10,323,075.00 3.25 3134A31'CO 6.300% 06/01/2004 DD 06/01/99 AAA 10,211,250.00 2.45 2,000,000.00 MARSH & MCLENNAN COS !NC SR NT 6 .717 6.795 A2 97. 639 1,992,280.00 .62 571748AB8 6.625% 06/15/2004 DD 06/14/99 AA-1,952,780.00 .47 3 1 0001 000.00 FORD MTR CR CO GLOBAL LANDMARK 6 . 739 6 .862 A2 97.635 2,995,080.00 .93 345397SJ3 6.700% 07/16/2004 DD 07 /16/99 A 2,9291oso.oo .70 900,000.00 FEDERAL HOME LN BK CONS BOS 6. 777 6.749 AAA 100.016 899,550.00 .28 3J.33MAQJ1 6.750% 02/01/2002 OD 02/01/00 AAA 900,144.00 .22 YLDANAL YIELD ANALYSIS PAGE 9 OCSF07522202 2000/08/3.l RUN DATE 09 /07 /00 DISTRICT: LONG-TERM OPERATING RUN TIME 14.02.38 =====~=---------..... ------======----======:.= PAR VALUE Y'l'M AT CURR.ENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION .BOOK YIELD S-P PR1CE MAR.Kf:T VALUE % TOTAL --------------------------------------------------------------~--------------- 2,soo,000.00 COtrnTRYWIDE SOME LNS INC NT 6 .866 7.017 A3 97.617 2,498,400.00 .77 22237UA.88 6.850% 06/15/2004 DD 06/24/99 A 2,440,425.00 .59 7,300,000.00 ONEOK INC NEW NT 6 .960 7.388 A2 100.031 7,300,000.00 2.32 682680AJ2 FLTG RT 04/24/2002 DO 04/24/00 A 7,302,263.00 1 .76 1,302 ,539.65 GNMA II POOL !0080023 6.992 7.065 AAA 100.844 1,324,112.97 .41 3622SCAZ9 7.125% 12/20/2026 DO 12/01/96 AAA 1,313,533.08 .32 2,000,000.00 GNMA GTD REMIC TR 2000-2 PA 7 .014 1.021 AAA 9.9.609 1,996,875.00 .63 3837H3C70 7.000\ 12/20/2022 AAA l,992,180.00 .48 7,000,000.00 OLD KENT BK MTN SB 00001 7.084 7.485 A2 9!L687 1,000,000.00 2.22 67982XAJ\.6 VAR RT 11/01/2005 DD 04/28/00 A-6,978,090.00 l. 68 2,100,000.00 FEDERAL NATL MTG ASSN DEBS 7 .113 6.749 MA 98.156 2,030,133.00 .65 31359MEY5 6.625% 09/15/2009 DO 09/01/99 AAA "2,061,276.00 .so 2,000,000.00 LONG ISLAND LTG CO DEB 7.512 8.485 BAA3 96.639 2,1s1,2so.oo .61 542671CT7 8.200\ 03/15/2023 DD 03/28/93 A-1,932,780.00 .46 1,310,294.62 GREYSTONE SVCNG CORP FHA t95-7 7 .564 7.540 AAA 98.539 1,291,152.03 . 41 39810iAE4 7.430% 06/01/2003 OD 02/29/QO AAA l,291,152.03 .31 1,000,000.00 FORD MOTOR CR CO NT 7 .582 6 .956 A2 97.033 965, 170.00 .30 345397GV9 6 .750% 05/15/2005 A 970,330.00 .23 972,882,59 WMP/HUNTOON PAIGE !000-11150 7 .684 7.667 AAA 97. 828 951,752.80 .30 302998GE3 7.500~ 12/01/2030 OD 10/21/99 AAA 951,752,80 .23 3,000,000.00 PACIFICORP SECD MT.N #TR 00115 7.709 7.251 A2 100.676 2,950,530.00 .96 69512EEU5 7.300% 10/22/2004 OD 10/22/92 A J,020,200.00 .73 35,200,000.00 FEDERAL NATL MTG ASSN MTN 7. 72 4 6.876 AAA 94.531 32,498,400.00 10.59 31364GYJ2 6.500% 03/12/2009 DD 03/12/99 AAA 33,274,912.00 8.00 26 1000 1000.00 COMMIT TO PUR GNMA SF MTG 7.812 7. 891 AAA 101.375 26,358,750.00 8.38 01N080690 9 .000% 09/15/2030 AAA 26,357,500.00 6.34 1,600,000.00 ALLSTATE CORP SR NT 7. 96 7 7. 740 Al 101. 748 1,594,032.00 .51 020002AL5 7.875t 05/01/2005 DD 05/01/00 A+ 1,627,968.00 .39 YLDANAL OCSF07522202 DISTRICT: LONG-TERM OPERATING YIELD ANALYSIS 2000/09/31 PAGE RUN DATE RUN TIME 10 09/07/00 14 . 02 .38 ~==~===;===--==~-====== =====================================================-====================~-·============ PAR VALUE SECURITY ID SECURITY DESCRIPTION TOT.AL FIXED INCOME SECURITIES TOTAL YTM AT BOOK 5.242 5.363 CURRENT MOODY MARKET YIELD S-P PRICE 5.808 5 ,565 TOTAL COST/ Ml\RKET VALUE 314,803,542.09 314,166,676.81 416,656,109.21 416,019,243.93 t TYPE % TOTJIL 100.00 75.56 100.00 100.00 ORANGE COUNTY SANITATION DISTRICT OCSGOOO 10000 OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER RECEIPTS AND DISBURSEMENT TRANSACTIONS CASH/SECURITIES RECEIVED FROM PLAN ADMINISTRATOR LONG TERM OPER-PIMCO 0.00 RECD FROM PLAN ADMINISTRATOR NA9123459 ORANGE COUNTY SANITATION CD OTH'ER ADMINISTRA TfVE EXPENSES LIQUID OPER-PIMCO 0.00 FED WIRE FEES FOR JULY NA9123459 cw LONG TERM OPER-PIMCO 0.00 FED WIRE FEES FOR JULY NA9123459 cw PURCHASES CASH & CASH EQUfV ALENTS LONG TERM OPER-PIMCO 178,706.39 DREYFUS TREASURY CASH MGMT 996085247 B LIQUID OPER-PlMCO I 1,412.95 DREYFUS TREASURY CASH MGMT 996085247 B 11-Sep·WfJO lJ :56:01 TRADE DATE/ SETTLDATE/ COMPLDATE 3 l-Aug-2000 31-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 Ol-Aug-2000 Ol-Aug-2000 Ol-Aug-2000 0 l-Aug-2000 PAGE: I AMOUNT/ COST! GAIN/LOSS 32,670,000.00 o.oo 0.00 -2.55 OiOO 0.00 -9.35 0.00 0.00 -178, 706.39 178,706.39 0.00 -11,412.95 11,412.95 0.0() Executive Workbench OCSGOOO 10000 QCSD-CONSOLJDATED SHARES/PAR SECURITY ID TRANSCODE 178, 706.39 996085247 FC t 1,412.95 996085247 FC I ,300,000.00 313396056 B 1,300,000.00 313396056 FC 4,921.88 996085247 B 4,921.88 996085247 FC 7,010.41 99608524? 8 ll-Sep-2000 11:56:01 JI ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL Ol-AUG-2000 -31-AUG-2000 TRANSACTION DESCRJPTION/ BROKER LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PIMCO FEDERAL HOME LN MTG CORP DIS MAT 09/19/2000 CHASE SECURITIES, NEW YORK LIQUID OPER-PIMCO FEDERAL HOME LN MTG CORP DIS MAT 0911912000 CHASE SECURITIES, NEW YORK LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PIMCO DREYfUS TREASURY CASH MGMT TRADE DATE/ SETTLDATE/ COMPLDATE 01-Aug-2000 Ol-Aug-2000 0 l-Aug-2000 01-Aug-2000 Ol-Aug-2000 0 l-Aug-2000 Ol-Aug-2000 01-Aug-2000 Ol-Aug-2000 01-Aug-2000 OJ-Aug-2000 02-Aug-2000 02-Aug-2000 02-Aug-2000 02-Aug-2000 02-Aug-2000 OJ-Aug-2000 03-Aug-2000 PAGE: 2 AMOUNT/ COST/ GAIN/LOSS -I 78, 706.3 9 0.00 0.00 -11,412.95 0.00 0.00 -1,288,587.08 I ,288,587 .08 0.00 -1,288,587.08 0.00 0.00 -4,921.88 4,921.88 0.00 -4,921.88 0.00 0.00 -7,010.41 7,010.41 0.00 Executive Workbench OCSGOOOJ 0000 OCSD-CONSOLJDATED SHARES/PAR SECURITY ID TRANSCODE 7,010.41 996085247 FC 5,600,000.00 3 l3588M93 B 5,600,000.00 313588M93 FC 2,300,000.00 07785AL19 B 2,300,000.00 07785ALl9 FC 34,85 1.39 996085247 B 34,851.39 996085247 FC I l-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PJMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PlMCO FEDERAL NATL MTG ASSN DISC N MAT 11 /02/2000 CREDIT SUISSE FIRST BOSTON C LJQUlD OPER-PIMCO FEDERAL NATL MTG ASSN DISC N MAT 11/02/2000 CRE DIT SUISSE FIRST BOSTON C LONG TERM OPER-PIMCO BELL ATLNTIC FINL DISC ] l/01/2000 BANC ONE CAP MKTS INC, COLUM LONG TERM OPER-PlMCO BELLATLNTIC FINL DISC 11/01/2000 BANC ONE CAP MKTS JNC, COLUM LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT TRADE DATE/ SETTLDATE/ COMPLDATE 03-Aug-2000 03-Aug-2000 03-Aug~2000 03-Aug-2000 03-Aug-2000 03·Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 04-Aug-2000 03-Aug-2000 04-Aug-2000 04-Aug-2000 t t-Aug-2000 1 l-Aug-2000 l 1-Aug-2000 J J-Aug-2000 1 l-Aug-2000 PAGE: AMOUNT/ COST/ GAIN/LOSS -7,010.4 1 0.00 0.00 -5,508,909.00 5,508,909.00 0.00 -5 ,508,909. 00 0.00 0.00 -2,262,869.69 2,262,869.69 0.00 -2,262,869.69 0.00 0.00 -34,851.39 34,851.39 0.00 -34,851.39 0.00 0.00 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 4 PORTFOLIO DETAIL OCSGOOO 10000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADEDATEf AMOUN'l'/ SECURITY ID TRA NSACTION DESCRJPTlON/ SETTL DATE/ COST/ T~SCODE BROKER COMPLOATE GAIN/LOSS LONG TERM OPER-PIMCO 100,687.6() DREYFUS TREASURY CASJ-f MGMT 14-Aug-2000 -100,687.66 996085247 I 4-Aug-2000 100;687.66 B 0.00 LONG TERM OPER-PIMCO 100,687.66 DREYFUS TREASURY CASH MGMT 14-Aug-2000 -100,687.66 996085247 I 4-Aug-2000 0.00 FC 14-Aug-2000 0.00 LONG TERM OPER-PlMCO· 34,184.17 BSDT-LATE MONEY DEPOSIT ACCT 14-Aug-2000 -34, 184.17 996087094 I 4-Aug-2000 34,184.17 B 0.00 LIQUID OPER-PIMCO 12,800.00 DREYFUS TREASURY CASH MGMT l 5-Aug-2000 -12,800.00 996085247 15-Aug-2000 12,800.00 B 0.00 LIQUID OPER-PIMCO 12,800.00 DREYFUS TREASURY CASH MGMT I 5-Aug-2000 -12,800.00 996085247 15-Aug-2000 0.00 FC I 5-Aug-2000 0.00 LONG TERM OPER-PIMCO 291,394.96 DREYFUS TREASURY CASH MGMT I 5-Aug-2000 -291,394.96 996085247 15-Aug-2000 291,394.96 B 0.00 LONG TERM OPER-PIMCO 291,394.96 DREYFUS TREASURY CASH MGMT 15-Aug-2000 -291,394.96 996085247 15-Aug-2000 0.00 FC l 5-Aug-2000 0.00 JJ-Sep-2000 11:56:01 Executive Workbench OCSGOOO 10000 OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE 1,900,000.00 26354AM68 B 1,900,000.00 263S4AM68 FC 59,017.38 996087094 B 77,446.84 996085247 B 77,446.84 99608524'7 FC 238,908.60 996085247 B 238,908.60 996085247 FC J J-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRA NSACTION DESCRIPTION/ BROKER (..ONG TERM OPER-PJMCO bu PONT DE NEMOUR DISC 12/06/2000 CREDIT SUISSE FIRST BOSTON C LONG TERM OPER-PIMCO DU PONT DE NEMOUR DISC 12/06/2000 CREDIT SUISSE FIRST BOSTON C LONG TERM OPER-PIMCO BSDT-LATE MONEY DEPOSIT ACCT LONG TERM OPER-PJMCO 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 TRADE DATE/ SETTL DATE/ COMPL DATE 15-Aug-2000 I 5-Aug-2000 I S-Aug-2000 I S-Aug-2000 l 5-Aug-2000 16-Aug-2000 16-Aug-2000 17-Aug-2000 I 7-Aug-2000 17-Aug-2000 l 7-Aug-2000 17-Aug-2000 2 I -Aug-2000 2 l-Aug-2000 2 l-Aug-2000 2 l -Aug-2000 21-Aug-2000 PAGE: AMOUNT/ COST/ GAIN/LOSS -1,861,175.09 1,861,175.09 0.00 -1,861,175.09 0.00 0.00 -59,017.38 59,017.38 0.00 -77,446.84 77,446.84 0.00 -77,446.84 0.00 0.00 -238,908.60 238,908.60 0.00 -238,908.60 0.00 0.00 Executive Workbench OCSGOOOJ 0000 OCSD-CONSOLIDATED SHARESfPAR SECURITY ID TRANSCODE 9,795.00 996085247 B 9,795.00 996085247 FC 600,000.00 43851RLMO B 600,000.00 4·3851RLMO FC l ,000,000.00 4385JRLMO B l ,000,000.00 4385JRLMO FC 85,168.28 996085247 B 1 l-Sep-2000 J 1:56:01 II ORANGE COUNTY SANITATION DISTRICT PORTl?OLIO DETAIL 01 -AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PIMCO HONEYWELL INTL DISC 11/21/2000 MERRILL LYNCH PIERCE FENNER LIQUID OPER-PIMCO HONEYWELL INTL DISC 11/21/2000 MERRILL LYNCH PIERCE FENNER LONG TERM OPER-PIMCO HONEYWELL INTL DISC 11/21/2000 MERRlLL LYNCH PIERCE FENNER LONG TERM OPER-PlMCO HONEYWELL INTL DISC 11/21/2000 MERRlLL LYNCH PIERCE FENNER LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT TRADE DATE/ SETTLDATE/ COMPLDATE 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 24-Aug-2000 24-Aug-2000 PAGE: 6 AMOUN'l'/ COST/ GAIN/LOSS -9,795.00 9,795.00 0.00 -9,795.00 0.00 0.00 -590,205.00 590,205.00 0.00 -590,205.00 0.00 0.00 -983,675.00 983,675.00 0.00 -983,675.00 0.00 0.00 -85,168.28 85,168.28 0.00 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGJ!: 'i PORTFOLIO DETAIL OCSGOOO 10000 Ol-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO 85,168.28 DREYFUS TREASURY CASH MGMT 24-Aug-2000 -85, 168.28 996085247 24-Aug-2000 0.00 FC 24-Aug-2000 0.00 LONG TERM OPER-PJMCO 3,300,000.00 FEDERAL HOME LN MTG CORP DIS 24-Aug-2000 -3,268,320.00 313396K93 MAT 10/1712000 24-Aug-2000 3,268,320.00 B CHASE SECURITIES, NEW YORK 0.00 LONG TERM OPl3R-PJMCO 3,300,000.00 FEDERAL HOME LN MTG CORP DJS 24-Aug-2000 -3,268,320.00 313396K93 MAT 10/17/2000 24-Aug-2000 0.00 FC CHASE SECURITTES, NEW YORK 24-Aug-2000 0.00 LONG TERM OPER-P1MCO 24,101.07 DREYFUS TREASURY CASH MGMT 25-Aug-2000 -24, I 01.07 996085247 25-Aug-2000 24,101.07 B 0.00 LONG TERM OP ER-PIM CO 24,101.07 DREYFUS TREASURY CASH MGMT 25-Aug-2000 -24,101.07 996085247 25-Aug-2000 0.00 FC 25-Aug-2000 0.00 LONG TERM OPER-P!MCO 35,022.36 DREYFUS TREASURY CASH MGMT 28-Aug-2000 -35,022.36 996085247 28-Aug-2000 35,022.36 B 0.00 LONG TERM OPER-PIMCO 35,022.36 DREYPUS TREASURY CASH MGMT 28-Aug-2000 -35,022.36 996085247 28-Aug-2000 o.oo FC 28-Aug-2000 0.00 JJ-Sep-2000 ll 56-tJJ Executive Workbench OCSGOOOJ 0000 OCSD-CONSOLTDATED SHARES/PAR SECURITY ID TRANSCODE 1,41 J.33 996087094 B 337,408.10 996085247 B 337,408.10 996085247 FC 1,411.33 996085247 B 1,41 l.33 996085247 FC 6,666.78 996087094 B 76,676.14 996085247 B 11-Sep-2000 ll:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER !,.ONG TERM OPER-PIMCO BSDT-LA TE MONEY DEPOSIT ACCT LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PJMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PfMCO BSDT-LATE MONEY DEPOSIT ACCT LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT TRADE DATE/ SETTLDATE/ COMPLDATE 29-Aug-2000 29-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 3 I -Aug-2000 31-Aug-2000 ,, PAGE: 8 AMOUNT/ COST/ GAIN/LOSS -1,411.33 1,41 1.33 0.00 -337,408.10 337,408.10 0.00 -337,408.10 0.00 0.00 -1,41 L33 1,411.33 0.00 • l ,41 1.33 0.00 0.00 -6,666.78 6,666.78 0.00 -76,676.14 76,676.14 0.00 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: '9 PORTFOLIO DETAIL OCSGOOOJOOOO Ol-AUG-2000 -31-AUG-2000 OCSD-CONSOllDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY JD TRANSACTION DESCRIPTION/ SE1TLDATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO 76,676.14 DREYFUS TREASURY CASH MGMT 3 J ~Aug-2000 -76,676.14 996085247 31-Aug-2000 0.00 FC 3 l -Aug-2000 0.00 LIQUID OPER-PlMCO 400,000.00 FEDERAL HOME LN MTG CORP DIS 3 l-Aug-2000 -396,63 1.67 313396K93 MAT 10/17/2000 31-Aug-2000 396,631.67 B MORGAN I P SECS -FIXED !NCO 0.00 LIQUID OPER-PIMCO 400,000.00 FEDERAL HOME LN MTG CORP DIS 3 l-Aug-2000 -396,631.67 3 l3396K93 MAT 10/J 7 /2000 31-Aug-2000 0.00 FC MORGAN J P SECS -FIXED JNCO 3 l ·Aug-2000 0.00 LONG TERM OPER-PrMCO 32,600,000.00 GOLDMAN SACHS LP REPO 31-Aug-2000 -32,600,000.00 99372W648 06.400% 0910 l /2000 DD 08/31/ 3 I-Aug-2000 32,600,000.00 B GOLDMAN SACHS & CO, NY 0.00 LONG TERM OPER-PIMCO 32,600,000.00 GOLDMAN SACHS LP REPO 31-Aug-2000 -32,600,000.00 99372W648 06.400% 0910112000 DD 081311 3 l-Aug-2000 0.00 FC GOLDMAN SACHS & CO, NY 31-Aug-2000 0.00 FIXED INCOME SECURJTJES LONG TERM OPER-PIMCO -10,500,000.00 COMMIT TO PUR GNMA SF MTG 13-Jul-2000 10,014,375.00 OlN062680 6.500% 08/15/2030 23-Aug-2000 ·10,014,375.00 BC MER.RlLL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 11,000,000.00 COMMIT TO PUR GNMA SF MTG 13-Jul-2000 -10,487,812..50 OIN062680 6.500% 08/15/2030 23-Aug-2000 0.00 FC BEAR STEARNS & CO INC, NY 23-Aug-2000 0.00 Jl-Sep-2000 11 :56:01 £xei:11Uve Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: JO PORTFOLIO DETAIL OCSGOOOJ 0000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECU RlTY JD TRANSACTION DESCRIPTION/ SETTLDATE/ COST/ TRANSCODE BROK.EH COMl'LDATE GAIN/LOSS LONG TERM OPER-PIMCO 3,500,000.00 COMMIT TO PUR GNMA SF MTG 13-Juf -2000 -3,338, 125.00 01N062680 6.500% 08/15/2030 23-Aug-2000 3,338,125.00 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PJMCO 3,500,000.00 COMMIT TO PUR GNMA SF MTG I 3-Juf-2000 -3,338,125.00 O!N062680 6.500% 08/15/2030 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENN ER 23-Aug-2000 0.00 LONG TERM OPER-PIMCO 49,269. 15 GNMA POOL #0494299 13-Ju l-2000 -46,990.45 36210KDC6 6.500% 01/15/2029 DD 011011 23-Aug-2000 46,990.45 8 MERRJLL LYNCH PffiRCE FENNER 0.00 LONG TERM OPER-PIMCO 49,269.15 GNMA POOL #0494299 I 3-Jul-2000 -1 95.71 J6210KDC6 6.500% 01/J5/2029DD01/0 I/ 23-Aug-2000 0.00 rn 0.00 LONG TERM OPER-PIMCO 49,269.15 GNMA POOL #0494299 13-Jul-2000 -47,186.16 36210KDC6 6.500% 01/15/2029 DD OJ/01/ 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PIMCO 47,401.5 1 GNMA POOL #0496357 13-Juf-2000 -45,209.19 36210MME& 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 45,209.19 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-P!MCO 47,401.51 GNMA POOL #0496357 l 3-Jul-2000 -188.29 36210MME8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 TB 0.00 I I-Sep-2000 I 1:56:01 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT II PAGE:: lJ PORTFOLIO DETAIL OCSGOOOJ 0000 Ol-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY JD TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAINIWSS LONG TERM OPER-PIMCO 47,40l.51 GNMA POOL #0496357 13-Jul-2000 -45,397.48 36210MME8 6.500% 06115/2029 DD 061011 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PIMCO 49,493.99 GNMA POOL #050427 1 I 3-Jul-2000 -47,204.89 362 10WFL8 6.500% 04/15/2029 DD 041011 23-Aug-2000 47,204.89 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OP ER-PIM CO· 49,493.99 GNMA POOL #0504271 13-Jul-2000 -196.60 36210WFL8 6.500% 04/15/2029 DD 04/01/ 23-Aug-2000 0.00 IB 0.00 LONG TERM OPER-PIMCO 49,493.99 GNMA POOL #0504271 J 3-Jul-2000 -47,401.49 36210WFL8 6.500% 04/15/2029 DD 04/0 I/ 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PIMCO 894,800.18 GNMA POOL #0509962 13-Jul-2000 -853,415.67 3621 IDQP8 6.500% 06115/2029 DD 06/01/ 23-Aug-2000 853,41 5.67 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 894,800.18 GNMA POOL #0509962 13-Jul-2000 -3,554.35 3621 lDQP8 6.500% 0611512029 DD 06/01/ 23-Aug-2000 0.00 IB 0.00 LONG TERM OPER-PIMCO 894,800.18 GNMA POOL #0509962 l 3-Jul-2000 -856,970.02 3621 IDQPS 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 I l-Sep-2000 I I :56:01 Executive Wurkbenclt @ ORANGE COUNTY SANITATION DISTRICT PAGE: 12 PORTFOLIO DETAIL OCSGOOOJ 0000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOL!DATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY IO TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO 52,039.95 GNMA POOL #0494779 13-Jul-2000 -49,633.10 36210KUC7 6.500% 06/15/2029 DD 0610 II 23-Aug-2000 49,633.10 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 52,039.95 GNMA POOL #0494779 I 3-J ul-2000 -206.71 362lOKUC7 6.500% 06/15/2029 DD 061011 23-Aug-2000 0.00 TB 0.00 LONG TERM OPER-PIMCO 52,039.95 GNMA POOL #0494779 13-Jul-2000 -49,839.81 36210KUC7 6.500% 06/15/2029 DD 06101/ 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PlMCO 48,662.82 GNMA POOL #0497543 l 3-Jul-2000 -46,4 12.16 36210NWC9 6.500% 01/15/2029 DD 011011 23-Aug-2000 46,412.16 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 48,662.82 GNMA POOL #0497543 13-Jul-2000 -193.30 36210NWC9 6.500% 01115/2029 DD 01/0 1/ 23-Aug-2000 0.00 IB 0.00 LONG TERM OPER-PIMCO 48,662.82 GNMA .POOL #0497543 I 3-Jul-2000 -46,605.46 36210NWC9 6.500% 01/15/2029 DD Ol/01/ 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PTMCO 55,687.91 GNMA POOL 110509362 13-Jul-2000 -53, J 12.34 3621 1CZ39 6.500% 07/15/2029 DD 07/01/ 23-Aug-2000 53,112.34 8 MERRILL LYNCH Pl8RCE FENNER 0.00 ll-Sep-2000 11 :56:01 Executi11e Workbench OCSGOOOJ 0000 OCSD-CONSOLIDATED SHARES/PAR SECURITY TD TRANSCODE 55,687.91 3621 JCZ39 IB 55,687.9 1 362 11 CZ39 FC 895,881.48 3621 IDQP8 B 895,881.48 36211DQP8 IB 895,881.48 362J IDQP8 FC 48,530.05 36209LKT2 B 48,530.05 36209LKT2 1B JJ-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL Ol-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PIMCO GNMA POOL #0509362 6.500% 07/15/2029 DD 07/01/ LONG TERM OPER-PIMCO GNMA POOL #0509302 6.500% 07/15/2029 DD 07/01/ MERRTLL LYNCH PIERCE FENNER LONG TERM OPER-PIMCO GNMA POOL #0509962 6.500% 06(15/2029 DD 061011 MERRILL LYNCH PIERCE FENNER LONG TERM OPER-PIMCO GNMA POOL #0509962 6.500% 06/15/2029 DD 0610 II LONG TERM OPER·PIMCO GNMA POOL #0509962 6.500% 06/15/2029 DD 061011 MERRILL LYNCH PIERCE FENNER LONG TERM OPER-PIMCO GNMA POOL #0474706 6.500% 03/J 5/2029 DD 03/01/ MERRlLL LYNCH PIERCE FENNER LONG TERM OPER-PIMCO GNMA POOL #0474706 6.500% 03/15/2029 DD 03/01/ TRADE DATE/ SETTLDATE/ COMPLDATE 13-Jul-2000 23-Aug-2000 13-Jul-2000 23-Aug-2000 23-Aug-2000 13-Jul-2000 23-Aug-2000 13-Jul-2000 23-Aug-2000 13-Jul-2000 23-Aug-2000 23-Aug-2000 13-Jul-2000 23-Aug-2000 13-Jul-2000 23-Aug-2000 PAGE: 13 AMOUNT/ COST/ GAIN/LOSS -221.20 0.00 0.00 ·53,333.54 0.00 0.00 -854,446.96 854,446.96 0.00 -3,558.64 0.00 0.00 -858,005.60 0.00 0.00 -46,285.54 46,285.54 0.00 -192.77 0.00 0.00 Executive Workbench @ ~ ORANGE COUNTY SANITATION DISTRICT ] PAGE: 14 PORTFOLIO DETAIL OCSGOOO 10000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SRA RES/PAR TRADE DATE/ AMOUNT/ SECURlTYID TRANSACTfON DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKl!:R COMPLDATE GAIN/LOSS LONG TERM OPER-PTMCO 48,530.05 GNMA POOL #0474706 13-J ul-2000 -46,47831 36209LKT2 6.500% 03/15/2029 DD 03/0 II 23-Aug-2000 0.00 FC MERRJLL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PIMCO I ,000,099.24 GNMA POOL #0509962 I 3-Jul-2000 -953,844.65 36211DQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 953,844.65 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PJMCO I ,000,099.24 GNMA POOL #0509962 13-Jul-2000 -3,972.62 3621 IDQP8 6.500% 06/1512029 DD 06/01/ 23-Aug-2000 0.00 IB 0.00 LONG TERM OPER-PIMCO 1,000,099.24 GNMA POOL #0509962 I 3-Jul-2000 -957,817.27 362IJDQP8 6.500% 06/1512029 DD 061011 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCEFENNER 23-Aug-2000 0.00 LONU TERM OPER-PlMCO 1,000,099.24 GNMA POOL #0509962 13-Jul-2000 -953,844.65 362 110QP8 6.500% 06115/2029 DD 0610 I/ 23-Aug-2000 953,844.65 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 1,000,099.24 GNMA POOL #0509962 13-Jul-2000 -3,972.62 3621 IDQPS 6.500% 06/15/2029 DD 06101/ 23-Aug-2000 0.00 LB 0.00 LONG TERM OPER-PIMCO 1,000,099.24 GNMA POOL #0509962 13-Jul-2000 -957,817.27 3621 JDQP8 6.500% 06/15/2029 DD 06101/ 23-Aug-2000 0.00 fC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 11-Sep-2000 11: 56:0 I Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: is PORTFOLIO DETAIL OCSGOOO 10000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLJDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SE TTL OA TE/ COST/ TRANSCODE ~ROKER COMPL DATE GAIN/LOSS J ,000,099.24 LONG TERM OPER-PlMCO GNMA POOL #0509962 l 3-Jul-2000 -953,844.65 3621 IDQP8 .6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 953,844.65 B MERRILLLYNCHPTERCE FENNER 0.00 LONG TERM OPER-PlMCO 1,000,099.24 GNMA POOL #0509962 I 3-Jul-2000 -3,972.62 3621 IDQPS 6.500% 06115/2029 DD 06/01/ 23-Aug-2000 0.00 l8 0.00 LONG TERM OPER-PfMCO 1.000,099.24 GNMA POOL #0509962 13-Jul-2000 -957,817.27 36211DQP8 6.500% 0611512029 DD 061011 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PIMCO 57,897.80 GNMA POOL #OS I 0702 13-Jul-2000 -55,220.03 J 621lEKP2 6.500% 11/15/2029 DD 11/01/ 23-Aug-2000 55,220.03 B MERRILL LYNCH P1ERCE FENNER 0.00 LONG TERM OPER-PfMCO 57,897.80 GNMA POOL #0510702 13-Jul-2000 -229_98 362 1 IEKP2 6.500% 11/15/2029 DD 11/01/ 23-Aug-2000 0.00 18 0.00 LONG TERM OPER-PJMCO 57,897.80 GNMA POOL #05 l 0702 13-Jul-2000 -55,450.01 3621 IEKP2 6.500% 1111512029 DD 11/01/ 23-Aug-2000 0.00 FC MERRlLL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PIMCO 899,396.88 GNMA POOL 110509962 13-Jul-2000 ·857,799.77 3621 IDQP8 6.500% 06/15/2029 DD 061011 23-Aug-2000 857,799.77 B MERRILL LYNCH PIERCE FENNER 0.00 1 J-Sep-2000 11: 56:01 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 16 PORTFOLIO DETAIL OCSGOOO 10000 Ol-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHA.RES/PAR TRADE DATE/ AMOUNT/ SECU RITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/ TRANS CODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PlMCO 899,396.88 GNMA POOL #0509962 I 3-.lul-2000 -3,572.60 3621 JOQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 IB 0.00 LONG TERM OPER-PIMCO 899,396.88 GNMA POOL #0509962 I 3-JuJ-2000 -861,372.37 36211DQP8 6.500% 0611512029 DD 061011 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PlMCO 901 ,336.06 GNMA POOL #0509962 l3-Jul-2000 -859,649.27 3621 IDQP8 6.500% 06/15/2029 DD 06/0 I/ 23-Aug-2000 859,649.27 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 90 1,336.06 GNMA POOL #0509962 13-Jul-2000 -3,580.31 36211DQP8 6.500% 06/15/2029 DD 061011 23-Aug-2000 0.00 m 0.00 LONG TERM OPER-PIMCO 901,336.06 GNMA POOL #0509962 13-Jul-2000 -863,229.58 36211DQP8 6.500% 06/15/2029 DO 06/01/ 23-Aug-2000 0.00 FC MERRILL LYNCH PIERCE FENNER 23-Aug-2000 0.00 LONG TERM OPER-PIMCO 6,250,000.00 COMMIT TO PUR GNMA SF MTG I 4-Jul-2000 ~s, 753,906.25 01N060684 6.00% 8/15/2030 23-Aug-2000 0.00 FC GOLDMAN SACHS & CO, NY 23-Aug-2000 0.00 LONG TERM OPER,-PIMCO 2,000,000.00 COMMIT TO PUR GNMA SF MTG l 7-Jul-2000 -2,0 }' l,250.00 OIN080682 8.00% 08/15/2030 23-Aug-2000 0.00 PC BEAR STEARNS & CO lNC, NY 23-Aug-2000 0.00 IJ-Sep-2000 IJ:56:01 Executive Workbench @ II ORANGE COUNTY SANITATION DISTRICT PAGE: i7 PORTFOLIO DETAIL OCSGOOO 10000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITYlD TRANSACTION DESCRIPTION/ SETTLDATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PlMCO 3.500,000.00 COMMIT TO PlJR GNMA SF MTG 15·Aug-2000 -3,355,625.00 OIN062698 6.500% 09/15/2029 21-Sep-2000 3,355,625.00 B MERRILL LYNCH PlBRCEFENNER 0.00 LONG TERM OPER-PIMCO 6,250,000.00 COMMIT TO PUR GNMA SF MTG 15-Aug-2000 -5,835,937.50 OIN060692 6.00% 9/15/2029 2 l-Sep-2000 5,835,937.50 8 GOLDMAN SACHS & CO, NY 0.00 LONG TERM OPER-PIMCO 11,000,000.00 COMMIT TO PUR GNMA SF MTG l 5-Ang-2000 -10,546,250.00 OJN062698 6.500% 09/15/2029 21-Sep-2000 I 0,546,250.00 B BEAR STEARNS & CO INC, NY 0.00 LONG TERM OPER-PlMCO 2,000,000.00 COMMIT TO PUR GNMA SF MTG 16-Aug-2000 -2,025,000.00 01N080690 8.000% 09/01/2030 21-Sep-2000 2,025,000.00 B BEAR STEARNS & CO INC, NY 0.00 LONG TERM OPER-PIMCO 6,900,000.00 US TREASURY NOTES 23-Aug-2000 -6,936,386. 72 9128275N8 06.000% 08/15/2009 DD 08/J 5/ 24-Aug-2000 6,936,386.72 B GREENWICH CAP MKTS INC. GREE 0.00 LONG TERM OPER-PIMCO 6,900,000.00 US TREASURY NOTES 23-Aug-2000 -10,125.00 9128275N8 06.000% 08/15/2009 DD 081151 24-Aug-2000 0.00 18 0.00 LONG TERM OPER-PlMCO 6.900,000.00 US TREASURY NOTES 23-Aug-2000 -6,946,511.72 9128275N8 06.000% 08/15/2009 DD 08/15/ 24-Aug-2000 0.00 FC GREENWICH CAP MKTS INC. GREE 24-Aug-2000 0.00 JJ~Sep-2000 J 1:56:01 Executive Workbench OCSGOOOJ 0000 OCSD-CONSOL/DATED SHARES/PAR SECURITY ID TRANS CODE 250,000.00 J6l61ABL I B 250,000.00 16161ABL I lB 250,000.00 16161A.BLI FC 500,000.00 06670QDJ4 B 500,000.00 06670QDJ4 IB 500,000.00 06670QDJ4 FC 6,900,000.00 9128275N8 8 ll-Sep-2000 ll :56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRlPTION/ BROKER pQUlD OPER-PIMCO ~HASE MANHA TI AN CORP NEW SUB 9.375% 07/01/2001 DD 07/0 1/8 CHASE SECURITIES, NEW YORK LIQUID OPER-PIMCO CHASE MANHATTAN C.ORP NEW SUB 9.375% 07/0J/2001 DD 07/01/8 LIQUID OPER-PlMCO CHASE MANHA TT AN CORP NEW SUB 9.375% 07/01/200 I DD 07/01/8 CHASE SECURITIES, NEW YORK LIQUID OPER-PIMCO BANPONCE FINL CORP MTN #0008 6. 750% 08/09/200 I DD 08/09/9 LEHMAN GOVT SECS INC, NY LIQUID OPER·PlMCO BANPONCE ffNL CORP MTN #0008 6.750% 0810912001 DD 08/09/9 LIQUID OPF:R-PlMCO BANPONCE FINL CORP MTN #0008 6.750% 08/09/2001 DD 08/09/9 LEHMAN GOVT SECS INC, NY LONG TERM OPER-PIMCO U S TREASURY NOTES 06.000% 08/15/2009 DD 08/15/ CHASE SECURITIES, NEW YORK TRADE DATE/ SETTL DATE/ COMPLDATE 25-Aug-2000 30-Aug-2000 25-Aug-2000 30-Aug-2000 25-Aug-2000 30-Aug-2000 30-Aug-2000 25-Aug-2000 30-Aug-2000 25-Aug-2000 30-Aug-2000 25-Aug-2000 30-Aug-2000 30-Aug-2000 28·Aug·2000 29-Aug-2000 PAGE. 18 AMOUNT/ COST/ GAIN/LOSS -254,730.00 254,730.00 0.00 -3,841.15 0.00 0.00 -258,571.15 0.00 0.00 -496,495.00 496,495.00 0.00 -7,031.25 0.00 0.00 -503,526.25 0.00 0.00 ·6,920,484.38 6,920,484.38 0.00 Executive Workbench OCSGOOO I 0000 OCSD-CONSOLJDATED PA YUPS SHARES/PAR SECURJTY 1D TRANSCODE 6,900,000.00 9128275N8 IB 6,900,000.00 9128275N8 FC 12,000.000.00 01N080690 B 12,000,000.00 01N080690 B FIXED INCOME SECURITIES 140,990.00 9128272M3 PU 140,990.00 9128272M3 FC ll-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PIMCO US TREASURY NOTES 06.000% 08/15/2009 DD 08115/ LONG TERM OPER-PIMCO U S TREASURY NOTES 06.000% 08/15/2009 DD 081151 CHASE SECURITIES, NEW YORK LONG TERM OPER-PlMCO COMMIT TO PUR GNMA SF MTG 8,000% 09/1512030 SALOMON BROS INC, NEW YORK LONG TERM OPER-PIMCO COMMIT TO PUR GNMA SF MTG 8.000% 09/15/2030 SALOMON BROS INC, NEW YORK LONG TERM OPER-PIMCO US TREASURY INFLATION INDEX 3.375% 01/15/2007 DD 011151 LONG TERM OPER-PlMCO US TREASURY INFLATION INDEX 3.375% 01/15/2007 DD 01/15/ TRADE DATE/ SETTLDATE/ COMPL DATE 28-Aug-2000 29-Aug-2000 28-Aug-2000 29-Aug-2000 29-Aug-2000 3 J-Aug-2000 2 I -Sep-2000 3 l-Aug-2000 2 l-Sep-2000 I 5-Jul-2000 15-Jul-2000 15-Jul-2000 I 5-Jul-2000 3 I -Aug-2000 PAGE: }9 AMOUNT/ COST/ GA(N!LOSS -15,750.00 0.00 0.00 -6,936,234.38 0.00 0.00 -12, 166,875.00 J 2, 166,875.00 0.00 -12,166,875.00 12,166,875.00 0.00 -140,990.00 140,990.00 0.00 -l40,990.00 0.00 0.00 Executive Workbench OCSGDOOJ 0000 OCSD-CONSOLIDATED SHARES/PAR SECURITY TD TRANSCODE 49,692.00 9128273A8 PU 49,692.00 9128273A8 FC 14.00 3133TCE95 PU 14.00 3133TCE95 FC 12,295.3 1 3133T17A4 PU 12,295.31 3133T17A4 FC 10,587.60 79549BBGJ PU ll-Sep-2000 ll:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAI L 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PJMCO US TREASURY INFLATION INDEX 3.625% 07/15/2002 DD 07/15/ LONG TERM OPER-PIMCO US TREASURY INFLATION JNDEX 3.625% 07/15/2002 DD 07/15/ LONG TERM OPER-P!MCO FHLMC MULTlCLASS CTFE3 A VAR RT 08115/2032 LONG 'fERM OPER-PlMCO FHLMC MUL Tl CLASS CTF E3 A VAR RT 08/15/2032 LONG TERM OPER-PIMCO FHLMC MUL Tl CLASS CTF SER 162 6.000% I l/15/2023 DD ll/01/9 LONG TERM OPER-PIMCO FHLMC MULTICLASS CTF SER 162 6.000% 11115/2023DDT1/01/9 LONG TERM OPER-PIMCO SALOMON SMITH BARNEY HLDGS I 3.650% 02/14/2002 DD 02/14/ TRADE DATE/ SETTL DATE/ COMPLDATE I 5-Jul-2000 l 5-Jul-2000 I 5-Jul-2000 I 5-Jul-2000 3 l-Aug-2000 Ol-Aug-2000 0 l-Aug-2000 01-A ug-2000 Ol-Aug-2000 15-Aug-2000 0 I -Aug-2000 01-Aug-2000 0 l-Aug-2000 Ol-Aug-2000 16-Aug-2000 14-Aug-2000 14-Aug-2000 PAGE: 20 AMOUNT/ COST/ GAIN/LOSS -491692.00 49,692.00 0.00 -49,692.00 0.00 0.00 -14.00 14.00 0.00 -14.00 0.00 0.00 -12,295.31 12,295.31 0.00 -12,295.3 1 0.00 0.00 -10,587.60 10,587.60 0.00 Executive Workbench OCSGOOO J 0000 OCSD-CONSOLIDATED SALES SHARES/PAR SECURITY 1D TRANSCODE 10,587.60 79549BBG1 FC CASH & CASH EQUIV A LENTS -311.11 996085247 s -31 L lJ 996085247 FC -1,400,000.00 313588846 s -1,400,000.00 313588846 IS -1,400,000.00 313588846 FC ll-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PIMCO SALOMON SMITH BARNEY HLDGS I 3.650% 02/14/2002 DD 02/14/ LIQUID OPER-PfMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PIMCO FEDERAL NATL MTG ASSN DISC N MAT 0810912000 HSBC SECS INC, NEW YORK LIQUID OPER-PIMCO FEDERAL NATL MTG ASSN DISC N MAT 08/09/2000 LIQUID OPER-P!MCO FEDERAL NATL MTG ASSN DlSC N MAT 08/09/2000 HSBC SECS INC, NEW YORK TRADE DATE/ SETTLDATE/ COMPLDATE 14-Aug-2000 14-Aug-2000 3 l-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aog-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 II PAO!::: 11 AMOUNT/ COST/ GAIN/LOSS -10,587.60 0.00 0.00 311.11 -311.11 0.00 311.1 1 o.oo 0.00 1,386,246.94 -I ,386,246.94 0.00 12,255.06 0.00 0.00 1,398,502.00 0.00 0.00 Executive Workbench OCSGOOO 10000 OCSD-CONSOLJDATED SHARES/PAR SECURTTY 10 TRANSCODE -2.55 996085247 s -2.55 996085247 FC -25,964.98 996085247 s -25,964.98 996085247 FC -34,184.17 996087094 s -59,017.38 996087094 s -857,000.18 996085247 s 1 l-Sep-2000 11 :56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL Ol -AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-P!MCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PlMCO BSDT-LATE MONEY DEPOSIT ACCT LONG TERM OPER-PJMCO BSDT-LATE MONEY DEPOSIT ACCT LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMT TRADE DATE/ SETTL DATE/ COMPLDATE 04-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 04-Aug-2000 15-Aug-2000 I 5-Aug-2000 17-Aug-2000 17-Aug-2000 23-Aug-2000 23-Aug-2000 PAGE: 12 AMOUNT/ COST/ GAJN/LOSS 2.55 -2.55 0.00 2.55 0.00 0.00 25,964.98 -25,964.98 0.00 25,964.98 0.00 0.00 34,184, 17 -34,184.17 0.00 59,017.38 -59,017.38 0.00 857,000.18 -857,000.18 0.00 Executive Workbench OCSGOOOJ 0000 OCSD-CONSOLIDATED SHARES/PAR SECURITY lD TRANSCODE -857,000.18 996085247 FC -155,637.05 996085247 s -155,637.05 996085247 FC -6,800,000.00 3 l.3396F81 s -6,800,000.00 313396F81 lS -6,800,000.00 313396F81 FC -1,411.33 996087094 s 1 J-Sep-2000 I 1:56.·0J ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER 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-PlMCO FEDERAL HOME LN MTG CORP DIS MAT 09/14/2000 MORGAN 1 P SECS -FIXED !NCO LONG TERM OPER-PIMCO FEDERAL HOME LN MTG CORP DIS MAT09/14/2000 LONG TERM OPER-PIMCO FEDERAL HOME LN MTG CORP DIS MAT 09/14/2000 MORGAN JP SECS -FIXED !NCO LONG TERM OPER-PIMCO BSDT-LATE MONEY DEPOSIT ACCT TRADE DATE/ SETTL DATE/ COMPLDATE 23-Aug-2000 23-Aug-2000 23-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 29-Aug-2000 30-Aug-2000 30-Aug-2000 PAG£: iJ AMOUNT/ COST/ GAIN/LOSS 857,000.18 0.00 0.00 155,637.05 -155,637.05 0.00 155,637.05 0.00 0.00 6,702,775.13 -6, 702,775.13 0.00 77,822.20 0.00 0.00 6,780,597.33 0.00 0.00 . l,411.33 ~t,411.33 0.00 Execufiye Workbench OCSGOOOJOOOO OCSD-CONSOL!DATED SHARES/PAR SECURITY ID TRANSCODE -400,000.00 3J3396F81 s -400,000.00 3l3396F81 IS -400,000.00 313396F81 FC -300,000.00 313384P20 s -300,000.00 313384F20 IS -300,000.00 313384f20 PC -6,666.78 996087094 s /l-Sep-2000 ll:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LIQUID OPER-PtMCO FEDERAL HOME LN MTG CORP DIS MAT 09/14/2000 GOLDMAN SACHS & CO, NY LIQUID OPER-PIMCO FEDERAL HOME LN MTG CORP DIS MAT 09/14/2000 LrQUID OPER-PIMCO FEDERAL HOME LN MTG CORP DIS MAT 09/14/2000 GOLDMAN SACHS & CO, NY LIQUID OPER-PlMCO FEDERAL HOME LN BK CONS DISC MAT 09/08/2000 HSBC SECS INC, NEW YORK LIQUID OPER-PJMCO FEDERAL HOME LN BK CONS DISC MAT 0910812000 LIQUID OPER-PIMCO FEDERAL HOME LN l3K CONS DISC MAT 09/08/2000 HSBC SECS INC, NEW YORK LONG TERM OPER-PTMCO BSDT-LATE MONEY DEPOSIT ACCT TRADE DATE/ SETTL DATE/ COMPLDATE 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 3 l-Aug-2000 3 l-Aug-2000 PAGE: 24 AMOUNT/ COST/ GAIN/LOSS 393,827.11 -393,827.11 0.00 5,096.22 0.00 0.00 398,923.33 0.00 0.00 295,485.00 -295,485.00 0.00 4,030..50 0.00 0.00 299,515.50 0.00 0.00 6,666.78 -6,666.78 0.00 Executive Workbench OCSGOOO 10000 OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE -396,631.67 996085247 s -396,631.67 996085247 FC FIXED INCOME SECURITIES 7,000,000.00 01N062680 SC -55,687.91 3621 1CZ39 s -55,687.91 3621 ICZ39 IS -55,687.91 3621 ICZ39 FC -894,800.18 3621 IDQP8 s I J-Sep-2000 11 :56:01 II ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000-31-AUG-2000 TRANSACTION DESCRJPTIONJ BROKER PQUID OPER-PIMCO bREYPUS TREASURY CASH MGMT LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LONG TERM OPER-PlMCO COMMlT TO PUR GNMA SF MTG 6.500% 0811512030 FIRST UNION CAP MI<TS. NEW YO LONG TERM OPER-PIMCO GNMA POOL #0509362 6.500% 07/15/2029 DD 071011 FIRST UNION CAP MI<TS. NEW YO LONG TERM OPER-PIMCO GNMA POOL #0509362 6.500% 07/15/2029 DD 071011 LONG TERM OPER-PIMCO GNMA POOL 110509362 6.500% 07/15/2029 DD 07/01/ FIRST UNION CAP MI<TS. NEW YO LONG TERM OPER-PIMCO GNMA POOL #0509962 6.500% 06/15/2029 DD 06/01/ FIRST UNION CAP MKTS. NEW YO TRADE DATE/ SETTLDATE/ COMPLOATE 31-Aug-2000 3 l-Aug-2000 31-Aug-2000 3 l-Aug-2000 3 l-Aug-2000 28-Jul-2000 23-Aug-2000 28-Jul-2000 23-Aug-2000 28-Jul-2000 23-Aug-2000 28-Jul-2000 23-Aug-2000 23-Aug-2000 28-Jol-2000 23-Aug-2000 PAGE: i5 AMOUNT/ COST/ GAIN/LOSS 396,631.67 -396,631.67 0.00 396,631.67 0.00 0.00 -6,627,03 J .25 6,675,130.81 48,099.56 52,720.79 -53,112.34 ·39L55 221,20 0.00 0,00 52,941.99 0.00 0.00 847,124.11 -853,415.67 -6,291.56 Executive Workbench OCSGOOOJOOOO OCSD-CONSOLIDATED SHARES/PAR SECURITY IO TRANSCODE -894,800.18 362 1 IDQPS IS -894,800.18 362l!DQP8 FC -895,881.48 3621 IDQP8 s -895,881.48 362 1 IDQP8 IS -895,881.48 3621 JDQP8 FC -899,396.88 3621 !DQP8 s -899,396.88 J621 IDQP8 IS l J-Sep-2000 11:56:01 II ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PIMCO GNMA POOL #0509962 6.500% 0611512029 DD 06/0l/ LONG TERM OPER-PIMCO GNMA POOL #0509962 6.500% 06/T5/2029 DD 06/01/ FIRST UNION CAP MK.TS, NEW YO LONG TERM OPER-PlMCO GNMA POOL #0509962 6.500% 06115/2029 DD 0610 II FIRST UNION CAP Ml<.TS. NEW YO LONG TERM OPER-PIMCO GNMA POOL #0509962 6.500% 06/15/2029 DD 06/01/ LONG TERM OPER-PIMCO GNMA POOL 110509962 6.500% 06115/2029 DD 06/01/ FIRST UNION CAP MK.TS, NEW YO LONG TERM OPER-PIMCO GNMA POOL #0509962 6.500% 06/15/2029 DD 061011 FIRST UNION CAP MKTS, NEW YO LONG TERM OPER-PIMCO GNMA POOL #0509962 6.500% 06/15/2029 DD 06/01/ TRADE DATE/ SETTLDATE/ COMPLDATE 28~ul-2000 23-Aug-2000 28-Jul-2000 23-Aug-2000 23-Aug-2000 28-Jul-2000 23-Aug-2000 28-Jul-2000 23-Aug-2000 28-Jul-2000 23-Aug-2000 23-Aug-2000 28-Jul-2000 23-Aug-2000 28-Jul-2000 23-Aug-2000 II PAGE: 26 AMOUNT/ COST/ GAIN/LOSS 3,554.35 0.00 0.00 850,678.46 0.00 0.00 848,147.79 -854,446.96 -6,299.17 3,558.64 0.00 0.00 851,706.43 0.00 0.00 851,475.89 -857, 799. 77 -6,323.88 J,572.t>O 0.00 0.00 &ecutive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: i7 PORTFOLIO DETAIL OCSGOOO I 0000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAlN/LOSS LONG TERM OPER-PIMCO -899,396.88 GNMA POOL #0509962 28-Jul-2000 855,048.49 3621 IDQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 FC FIRST UNION CAP MKTS. NEW YO 23-Aug-2000 0.00 LONG TERM OPER-PIMCO -901,336.06 GNMA POOL #0509962 28-Jul-2000 853,311.75 3621 JDQP8 6.500% 06115/2029 DD 0610 II 23-Aug-2000 ·859,649.27 s FIRST UNJON CAP MKTS. NEW YO -6,337.52 LONG TERM OPER-PIMCO -901,336.06 GNMA POOL #0509962 28-Jul-2000 3,580.31 3621 JDQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 JS 0.00 LONG TERM OPER-PIMCO -901 ,336.06 GNMA POOL #0509962 28-Jul-2000 856,892.06 36211DQP8 6.500% 06/15/2029 DD 0610 II 23-Aug-2000 o.oo FC FIRST UNION CAP MK.TS. NEW YO 23-Aug-2000 0.00 LONG TERM OPER-rlMCO -1,000,099.24 GNMA POOL #0509962 28-.lul-2000 946,812.70 3621 IDQP8 6.500% 06/1512029 DD 061011 23-Aug-2000 -953,844.65 s FTRST UNION CAP MKTS, NEW YO -7,031.95 LONG TERM OPER-PIMCO -1 ,000,099.24 GNMA POOL #0509962 28-Jul-2000 3,972.62 3621 IDQPS 6.500% 06/l5/2029 DD 06/01/ 23-Aug-2000 0.00 JS 0.00 LONG TERM OPER-PIMCO -1 ,000,099.24 GNMA POOL #0509962 28-Jul-2000 950,785.32 362 1 IDQPS 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 FC FIRST UNION CAP MKTS, NEW YO 23-Aug-2000 0.00 JJ-Sep-2000 11:56:01 Executive Workbench @ II ORANGE COUNTY SANITATION DISTRICT ij PAGE: 28 PORTFOLIO DETAIL OCSGOOOJOOOO 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLJDATED SHARES/PAR TRAOE DATE/ AMOUNT/ SECURITY ID TRANSACTION OESCRJPTrON/ SETTLDATE/ COST/ TRANSCODE BROKER COMPLDATE GA JN/LOSS LONG TERM OPER-PIMCO -1,000,099.24 ONMA POOL #0509962 28-Jul-2000 946,812.70 3621 IDQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 -953,844.65 s FIRST UNION CAP MKTS. NEW YO -7,031 .95 LONG TERM OPER-PTMCO -! ,000,099.24 GNMA POOL #0509962 28-Jul-2000 3,972.62 3621 IDQP8 6.500% 06/15/2029 DD 06/0l / 23-Aug-2000 0.00 rs 0.00 LONG TERM OPER-PJMC O -1,000,099.24 GNMA POOL #0509962 28-Jul-2000 950,785.32 3621 IDQP8 6.500% 06/1512029 DD 06/01/ 23-Aug-2000 0.00 FC FIRST UNION CAP MK.TS. NEW YO 23-Aug-2000 0.00 LONG TERM OPER-PJMCO -1,000,099.24 GNMA POOL #0509962 28-Jul-2000 946,812.70 3621 IDQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 -953,844.65 s PlRST UNION CAP MKTS. NEW YO -7,03 J.95 LONG TERM OPER-PlMCO -1,000,099.24 GNMA POOL #0509962 28-Jul-2000 3,972.62 362 1 JDQP8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PIMCO -1,000,099.24 GNMA POOL #0509962 28-Jul-2000 950,785.32 3621 IDQP8 6.500% 06/15/2029 OD 06/0l/ 23-Aug-2000 0.00 FC FIRST UNJON CAP MKTS, NEW YO 23-Aug-2000 0.00 LONG TERM OPER-PIMCO -57,897.80 GNMA POOL #05 10702 28-Jul-2000 54,812.93 36211EKP2 6.500% 11/15/2029 OD 11/01/ 23-Aug-2000 -55,220.03 s FIRST UNION CAP MKTS, NEW YO -407.10 l l-Sep-2000 11:56:01 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGl: 19 PORTFOLIO DETAIL OCSGOOO l 0000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTLDATE/ COST/ TRANSCODE BROKER COMPLDATE GAJN/LOSS LONG TERM OPER-PIMCO -57,897.80 GNMA POOL #0510702 28-Jul-2000 229.98 3621 IEKP2 6.500% J 1/15/2029 DD 11/01/ 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PIMCO -57,897.80 GNMA POOL #05 I 0702 28-Jul-2000 55,042.9 1 3621 IEKP2 6.500% 11/15/2029 DD 11/01/ 23-Aug-2000 0.00 FC FIRST UNION CAP MKTS. NEW YO 23-Aug-2000 0.00 LONG TERM OPER-PIMCO -48,530.05 GNMA POOL #0474706 28-Jul-2000 45,94431 36209LKT2 6.500% 03/15/2029 DD 03/01/ 23-Aug-2000 -46,285.54 s FIRST UNION CAP MKTS. NEW YO -341.23 LONG TERM OPER-PIMCO ·48,530.05 GNMA POOL #0474706 28-Jul-2000 192.77 36209LKT2 6.500% 03/J 5/2029 DD 0310 II 23-Aug-2000 0.00 rs 0.00 LONG TERM OPER-PIMCO -48,530.05 GNMA POOL #0474706 28-Jul-2000 46,137.08 36209LKT2 6.500% 03/15/2029 DD 03/01/ 23-Aug-2000 0.00 FC FIRST UNION CAP MKTS. NEW YO 25-Aug-2000 0.00 LONG TERM OPER-PIMCO -49,269.15 GNMA POOL #0494299 28-Jul-2000 46,644.03 36210KDC6 6.500% 0111512029 DD 01/0I/ 23-Aug-2000 -46,990.45 s FIRST UNION CAP MKTS. NEW YO -346.42 LONG TERM OPER·PIMCO -49,269.15 GNMA POOL #0494299 28-Jul-2000 195.71 J6210KDC6 6.500% 01/15/2029 DD 01/01/ 23-Aug-2000 0.00 IS 0.00 ! l-Sep-2000 11:56:01 Exec11tive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 30 PORTFOLIO DETAIL OCSGOOO 10000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY lD TRANSACrtON DESCRIPTION/ SETTLDATE/ COST( TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PlMCO -49,269.15 GNMA POOL #0494299 28-Jul-2000 46,839.74 36210KDC6 6.500% 01/15/2029 DD 01/01/ 23-Aug-2000 0.00 fC FIRST UNION CAP MKTS. NEW YO 25-Aug-2000 0.00 LONG TERM OPER-PIMCO -52,039.95 GNMA POOL #0494779 28-Jul-2000 49,267.20 36210KUC7 6.500% 06/1 5/2029 DD 06/01/ 23-Aug-2000 -49,633.10 s FIRST UNION CAP MKTS. NEW YO -365.90 LONG TERM OPER-PIMCO -52,039.95 GNMA POOL #0494779 28-Jul-2000 206.71 36210KUC7 6.500% 06/15/2029 DD 061011 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PIMCO -52,039.95 GNMA POOL #0494779 28-Jul-2000 49,473.91 362lOKUC7 6.500% 06/15/2029 DD 06101/ 23-Aug-2000 0.00 FC FIRST UNION CAP MKTS. NEW YO 25-Aug-2000 0.00 LONG TERM OPER-PIMCO -47,401.51 GNMA POOL #0496357 28-Jul-2000 44,875.90 362JOMME8 6.500% 06/15/2029 DD 06/01/ 23-Aug-2000 -45,209.19 s FIRST UNTON CAP MKTS. NEW YO -333.29 LONG TERM OPER-PIMCO -4?,401..51 GNMA POOL #0496357 28-Jul-2000 188.29 36210MME8 6.500% 0611512029 DD 06/01/ 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PIMCO -47,401.51 GNMA POOL #0496357 28-Jul-2000 45,064.19 36210MME8 6.500% 06/15/2029 DD 06/0lf 23-Aug-2000 0.00 FC FJRST UNION CAP MKTS, NEW YO 25-Aug-2000 0.00 J 1-Sep-2000 I /;56:01 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: Ji PORTFOLIO DETAIL OCSGOOO 10000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOL!DATED SHARES/PAR TRADE DATE/ AMOUNT/ S'ECURITY JD TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO -48,662.82 GNMA POOL #0497543 28-Jul-2000 46,070.00 362 10NWC9 6.500% 01/15/2029 DD 01/01/ 23-Aug-2000 -46,412.16 s FIRST UNION CAP MKTS. NEW YO -342. I 6 LONG TERM OPER-PIMCO -48,662.82 GNMA POOL #0497543 28-Jul-2000 193.30 36210NWC9 6.500% 01/15/2029 DD 01/01/ 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PlMCO· -48,662.82 GNMA POOL #0497543 28-Jul-2000 46,263.30 36210NWC9 6.500%01115/2029 DD 01/01/ 23-Aug-2000 0.00 FC FIRST UN ION CAP MKTS. NEW YO 23-Aug-2000 0.00 LONG TERM OPER-PlMCO -49,493.99 GNMA POOL #0504271 28-Jul-2000 46,856.89 362 10WFL8 6.500% 04115/2029 DD 04/0 l/ 23-Aug-2000 -47,204.89 s FIRST UNION CAP MKTS. NEW YO -348.00 LONG TERM OPER-PIMCO -49,493.99 GNMA POOL #0504271 28-Jul-2000 196.60 36210WFL8 6.500% 04115/2029 DD 04/01/ 23-Aug-2000 0.00 IS 0.00 LONG TERM OPER-PIMCO -49,493.99 GNMA POOL #0504271 28-Jul-2000 47,053.49 362JOWFL8 6.500% 04/15/2029 DD 04/01/ 23-Aug-2000 0.00 FC FIRST UNION CAP MKTS, NEW YO 25-Aug-2000 0.00 LONG TERM OPER-PIMCO -2.299.079.00 FHLMC MULTICLASS CTF2146 QT 01-Aug-2000 2,235, 764.52 3 133TKKU3 6. 000% l l I I 5120 ll 04-Aug-2000 -2,258,485.89 s GOLDMAN SACHS & CO, NY -22,721.37 !J-Sep-2000 11:56:01 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 32 PORTFOLIO DETAIL OCSGOOO 10000 Ol-AUG-2000 -31-AUG-2000 OCSD-CONSOL!DATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMJ>LDATE GAIN/LOSS LONG TERM OPER-PIMCO -2,299,079.00 FHLMC MULTICLASS CTF2146 QT 01-Aug-2000 1,149.54 3133TKKU3 6.000% 11/ 15/2011 04-Aug-2000 o.oo rs 0.00 LONG TERM OPER-PIMCO -2,299,079.00 FHLMC MULTlCLASS CTF 2146 QT Ol-Aug-2000 2,236,914.06 3133TKKU3 6.000% 11/15/2011 04-Aug-2000 0.00 FC GOLDMAN SACHS & CO. NY 04-Aug-2000 0.00 LONG TERM OPER-PIMCO -6,250,000.00 COMMIT TO PUR GNMA SP MTG 15-Aug-2000 5,836,425.78 01N060684 6.00% 8/15/2030 23-Aug-2000 -5, 753,906.25 s GOLDMAN SACHS & CO, NY 82,519.53 LONG TERM OPER-PIMCO -6,250,000.00 COMMIT TO PUR GNMA SF MTG 15-Aug-2000 5,836,425. 78 01N060684 6.00% 8/15/2030 23-Aug-2000 0.00 F'C GOLDMAN SACHS & CO, NY 23-Aug-2000 0.00 LONG TERM OPER-PlMCO • J 1,000,000.00 COMMlT TO PUR GNMA SF MTG 15-Aug-2000 10,547, 753.91 01N062680 6.500% 08/15/2030 23-Aug-2000 -10,487,812.50 s BEAR STEARNS & CO INC, NY 59,941.41 LONG TERM OPER-PIMCO -l l ,000,000.00 COMMIT TO PUR ONMA SF MTG J 5-Aug-2000 10,547,753.91 OIN062680 6.500% 08/J 5/2030 23-Aug-2000 0.00 FC BEAR STEARNS & CO lNC, NY 23-Aug-2000 0.00 LONG TERM OPER-PTMCO -3,500,000.00 COMMIT TO PUR GNMA SF MTG I 5-Aug-2000 3,356,171.88 OIN062680 6.500% 08/15/2030 23-Aug-2000 -3,338, 125.00 s MERRILL LYNCH PIERCE FENNER 18,046.88 JJ-Sep-2000 11 :56:01 Executive Workbench OCSGOOOJ 0000 OCSD-CONSOLJDATED SHARES/PAR SECURITY lD TRANS CODE -3,500,000.00 01N062680 FC -2,000,000.00 01N080682 s -2,000,000.00 OIN0806&2 FC PRINCIPAL PAYMENTS FIXED INCOME SECURITIES -5.723.00 31348SWZ3 FC 44,936.00 3133TCE95 PDC -44,950.00 3133TCE9S PD 1 J-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01 -AUG-2000-31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PIMCO COMM IT TO PUR GNMA SF MTG 6.500% 08/15/2030 MERRILL LYNCH PIERCE FENNER LONG TERM OPER-PIMCO COMMIT TO PUR GNMA SF MTG 8.00% 08/15/2030 BEAR STEARNS & CO INC, NY LONG TERM OPER-PIMCO COMMIT TO PUR GNMA SF MTG 8.00% 08/15/2030 BBAR STEARNS & CO INC, NY LONG TERM OPER-PIMCO FHLMC GROUP #78-6064 6.384% 01/0112028 DD 12/01/ LONG TERM OPER-PIMCO FHLMC MULTICLASS CTF E3 A VAR RT 08/15/2032 LONG TERM OPER-PIMCO PHLMC MULTI CLASS CTF E3 A VAR RT 08/LS/2032 TRADE DATE/ SETTLDATE/ COMPLDATE 15-Aug-2000 23-Aug-2000 23-Aug-2000 I 6-Aug-2000 23-Aug-2000 16-A ug-2000 23-Aug-2000 23-Aug-2000 01-Jul-2000 Ol-Jul-2000 15-Aug-2000 0 l -Jul-2000 0 l-Jul-2000 01-Jul-2000 0 1-.IUl-2000 PAGE: j3 AM OUNT/ COST/ GAlN/LOSS 3,356,171.88 o_oo 0.00 2,026,640.63 -2,011,250.00 15,390.63 2,026,640.63 0.00 0.00 ·5,723.00 0.00 0.00 -44,936.00 44,985.14 49.14 44,950.00 -44,999.16 -49.16 &ecutive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 31/ PORTFOLIO DETAIL OCSGOOO 10000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLIDATED SHARESfPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPLDAT'E GAJN/LOSS LONG TERM OPER-PIMCO -44,950.00 FHLMC MULTICLASS CTF E3 A Ol-Jul-2000 44,950.00 3133TCE95 VAR RT 08/15/2032 Ol-Jul-2000 0.00 FC 15-Aug-2000 0.00 LONG TERM OPER-PIMCO -48,856.65 FHLMC MULTICL MTG P/C 1574 E 0 l-Aug-2000 48,856.65 3133T02D5 5.900% 06/15/2017 Ol-Aug-2000 -48,787.95 PD 68.70 LONG TERM OPER-PIMCO. -48,856.65 FHLMC M UL TfCL MTG PIC 1574 E Ol-Aug-2000 48,856.65 3!33T02D5 5.900% 06/15/2017 0 J -Aug-2000 0.00 FC 15-Aug-2000 0.00 LONG TERM OPER-PJMCO -37,0 18.25 FHLMC MUL TlCLASS CTF 2 l 46 QT Ol -Aug-2000 37,018.25 3133TKKU3 6.000% 11115/2011 01-Aug-2000 -36,364.65 PD 653.60 LONG TERM OPER-PIMCO -37,018.25 FHLMC MULTICLASS CTF 2146 QT 01-Aug-2000 37,018.25 3J33TKKUJ 6.000% 111151201 I 0 l-Aug-2000 0.00 FC 15-Aug-2000 0.00 LONG TERM OPER-PlMCO -169,580.49 FHLMC GROUP #G5-0476 Ol-Aug-2000 169,580.49 3128DDQ55 7.000%02/01/2003 DD 02/01/ OJ -Aug-2000 -172,230.18 PD -2,649.69 LONG TERM OPER-PIMCO -169,580.49 FHLMC GROUP #05-0476 Ol-Aug-2000 169,580.49 3 128DDQ55 7.000% 02/01/2003 DD 02/01/ Ol-Aug-2000 0.00 FC 15-Aug-2000 0.00 I I-Sep-2000 I 1:56:01 executive Workbench OCSGOOOJ 0000 OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE -4,455.17 36225CNM4 PD -4,455.17 36225CNM4 FC -24,577.75 36225CC20 PD -24,577.75 36225CC20 FC -27,859.60 36225CAZ9 PD -27,859.60 36225CAZ9 FC -21.159.52 36225CN28 PD I J-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PIMCO GNM.<\ IT POOL #0080395 6.500% 04/20/2030 DD 04/0.1/ LONG TERM OPER-PIMCO GNMA 11 POOL #0080395 6.500% 04/20/2030 PD 04/01/ LONG TERM OPER-PlMCO GNMA II POOL #080088M VAR RT 06/20/2027 DD 06/01/9 LONG TERM OPER-PIMCO GNMA ll POOL #080088M VAR RT 06/20/2027 DD 06101/9 LONG TERM OPER-PlMCO GNMA II POOL #0080023 7.125% 12/20/2026 DD 12/01/ LONG TERM OPER-PJMCO GNMA I! POOL #0080023 7.125% 12/20/2026 DD 12/01/ LONG TERM OPER-PIMCO GNMA II POOL #080408X 6.500% 05/20/2030 DD 051011 TRADE DATE/ SETTLDATE/ COMPLDATE Ol-Aug-2000 0 1-Aug-2000 01-Aug-2000 01-Aug-2000 21-Aug-2000 01-Aug-2000 01-Aug-2000 01-Aug-2000 0 1-Aug-2000 2 l-Aug-2000 0 l-Aug-2000 01-Aug-2000 01-Aug-2000 01-Aug-2000 2 l-Aug-2000 01-Aug-2000 OJ-Aug-2000 PAGE: 35 AMOUNT/ COST/ GAIN/LOSS 4,455.17 -4,414.79 40.38 4,455.17 0.00 0.00 24,577.75 -25, 115.39 -537.64 24,577.75 0.00 0.00 27,859.60 -28,321.02 -46.1.42 27,859.60 0.00 0.00 21,159.52 -20,944.62 214.90 £.xecutive Workbench OCSGOOO I 0000 OCSD-CONSOL!DATED SHARES/PAR SECURITY ID TRANSCODE -21 ,159.52 36225CN28 FC -10,245.55 3t348SWZ3 PD -41 ,024.00 3133TCE95 PD -2,512.39 39810#AE4 PD -2,512.39 39810#AE4 PC -582.62 302998GE3 PD -582.62 302998GE3 FC J 1-Sep-2000 I 1:56:01 JI ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL Ol-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PIMCO GNMA fl POOL #080408X 6.500% 05120/2030 DD 051011 LONG TERM OPER-PIMCO FHLMC GROUP #78-6064 6.384%01/01/2028 DD 12/01/ LONG TERM OPER-PJMCO PHLMC MULTI CLASS CTF E3 A VAR RT 08/15n032 LONG TERM OPER-PIMCO GREYSTONE SVCNG CORP FHA #95 7.430% 06/0112003 DD 02/29/0 LONG TERM OPER-PIMCO GREYSTONE SVCNG CORP FHA #95 7.430% 06/01/2003 DD 02129/0 LONG TERM OPER-PIMCO WMP/HUNTOON PAIGE #000-11150 7.500% 12/01/2030 DD 1012119 LONG TERM OPER-PIMCO WMP/HUNTOON PAIGE #000·1I150 7.500% 12/01/2030 DD 10121/9 TRADE DATE/ SETTLDATE/ COMPLDATE Ol-Aug-2000 0 l -Aug-2000 21-Aug-2000 01-Aug-2000 01-Aug-2000 Ol-Aug-2000 01-Aug-2000 0 l -Aug-2000 Ol-Aug-2000 Ol-Aug-2000 0 l-Aug-2000 25-Aug-2000 01-Aug-2000 0 I -Aug-2000 0 I ·Aug-2000 01-Aug-2000 30-Aug-2000 PAGE: 36 AMOUNT/ COST/ GAlN/WSS 21,159.52 0.00 0.00 10,245.55 -9,995.81 249.74 41,024.00 -41,068.87 -44.87 2,512.39 -2,475.69 36.70 2,512.39 0.00 0.00 582.62 -569.97 12.65 582.62 0.00 0.00 Executive Workbench OCSGOOO I 0000 OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE MATURITIES -28,899.34 3935052Y7 PD -28,899.34 3935052Y7 FC -4,284.65 31677EAA4 PD -4,284.65 3 1677EAA4 FC -43,729.36 3837H4NX9 PD -43, 729.36 3837H4NX9 FC CASH & CASH EQUIVALENTS 1 J-Sep-2000 I U 6:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTJON/ BROKER LONG TERM OPER-PJMCO GREEN TREE CORP 99-D CL A-1 6.290% 10115/2013 DD 08/26/9 LONG TERM OPER-PlMCO GREEN TREE CORP 99-D CL A-I 6.290% 10/15/2013 DD 08/26/9 LONG TERM OPER-PIMCO FIFTH THIRD BK AUTO TR96A C 6.200% 09/01/2001DD0311519 LONG TERM OPER-PIMCO FIFTH THIRD BK AUTO TR 96A C 6.200% 09/01/2001 DD 03/15/9 LONG TERM OPER-PlMCO GNMA GTD REMICTR 2000-9 FH VAR RT 02/16/2030 LONG TERM OPER-PIMCO GNMA GTD REM!C TR 2000-9 FH VAR RT 02/16/2030 TRADE DATE/ SETTLDATE/ COMPLDATE I 5-Aug-2000 15-Aug-2000 15-Aug-2000 J 5-Aug-2000 l 5-Aug-2000 l 5-Aug-2000 I 5-Aug-2000 15-Aug-2000 I 5-Aug-2000 15-Aug-2000 16-Aug-2000 16-Aug-2000 16-Aug-2000 I 6-Aug-2000 16-Aug-2000 PAGE: 17 AMOUNT/ COST/ GAIN/LOSS 28,899.34 -28,899.34 0.00 28,899.34 0.00 0.00 4,284.65 -4,284.65 0.00 4,284.65 0.00 0.00 43,729.36 -43,729.36 0.00 43,729.36 0.00 0,00 Executive Workbench OCSGOOOJ 0000 OCSD-CONSOLJDATED SHARES/PAR SECURITY ID TRANSCODE -1,300,000.00 3 l3396A45 MT -4, I 09,000.00 J l3588A62 MT -1,600,000.00 97665RHF2 MT -600,000.00 27746AHP7 MT -10,300,000.00 313396034 MT FIXED INCOME SECURITIES INTEREST -400,000.00 52517PLM1 MT I J-Sep-2000 / /;56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER 1LlQUID OPER-PIMCO f BDERAL HOM£ LN MTG CRP DISC MAT 08/01 /2000 LIQUID OPER-PIMCO FEDERAL NA 1L MTG ASSN DISC N MAT 08/03/2000 LONG TERM OPER-PIMCO WISCONSIN EL PWR DISC 0811512000 LIQUID OPER-PIMCO EASTMAN KODAK CO DlSC 08/2312000 [.,ONG TERM OPER-PIMCO FEDERAL HOME LN MTG CORP DIS MAT 08/24/2000 LIQUID OPER-PIMCO LEHMAN BROS HLDGS MTN TR 002 6.400% 08/30/2000 DD 0912619 TRADE DATE/ SETTLDATE/ COMPLDATE 01-Aug-2000 0 l-Aug-2000 0 l-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 15-Aug-2000 15-Aug-2000 15-Aug-2000 23-Aug-2000 23-Aug-2000 23-Aug-2000 24-Aug-2000 24-Aug-2000 24-Aug-2000 30-Aug-2000 30-Aug-2000 30-Aug-2000 II PAGE: 38 AMOUNT/ COST/ GAIN/LOSS 1,283,341.95 -1,283,34 l. 95 0.00 4,059,806.57 -4,059,806.57 0.00 1,586,568.00 -l,586,568.00 0.00 592,904.17 -592,904.11 0.00 10,212,038.00 -10,212,038.00 0.00 400,000.00 -400,216.00 -216.00 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAG£: J9 PORTFOLIO DETAIL OCSGOOOJ 0000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOL!DATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRlPTION/ SETTLDATE/ COST/ TRANS CODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PLMCO -7,300,000.00 ONEOK INC NEW NT 24-Jul-2000 -127,020.00 682680AJ2 FLTG RT 04/24/2002 DD 04/24/ 24-Jul-2000 0.00 ITC 24-Jul -2000 0.00 LONG TERM OPER-PIMCO 7,300,000.00 ONEOK INC NEW NT 24-Jul-2000 128,43 1.33 682680AJ2 FLTG RT 04/24/2002 DD 04/24/ 24-Jlll-2000 0.00 IT 24-Jul-2000 0.00 LONG TERM OPER,-PLMCO 0.00 BSDT-LATE MONEY DEPOSIT ACCT 0 l-Aug-2000 0.30 996087094 01-Aug-2000 0.00 IT Ol-Aug-2000 0.00 LONG TERM OPER-PlMCO 900,000.00 FEDERAL HOME LN BK CONS BDS Ol-Aug-2000 30,375.00 3l33MAQJI 6.750% 02/01/2002 DD 02/01/0 01-Aug-2000 0.00 IT Ol-Aug-2000 0.00 LONG TERM OPER-PIMCO 7,000,000.00 OLD KENT BK MTN SB 00001 01-Aug-2000 131,614.56 67982XAA6 VAR RT 11/01/2005 DD 04/28/0 01-Aug-2000 0.00 TT Ol-Aug-2000 0.00 LIQUID OPER-PlMCO 0.00 BSDT-LATE MONEY DEPOSIT ACCT 0 l-Aug-2000 0.03 996087094 01-Aug-2000 0.00 IT 01-Aug-2000 0.00 LONG TERM OPER-PIMCO I ,000,000.00 HOUSEHOLD FIN MTN SR #00570 01-Aug-2000 16,716.53 44181KZT4 FLTG RT 08/01/2001 DD 09/04/ 01-Aug-2000 0.00 IT 01-Aug-2000 0.00 11-Sep-2000 11:56:01 Executive Workbench OCSGOOOJ 0000 OCSD-CONSOL!DATED SRARES!PAR SECURITY lD TRANSCODE 1,300,000.00 313396A45 TT 175,000.00 12560QAK5 IT 0.00 996085247 IT 0.00 996085247 IT 4, I 09,000.00 3!3588A62 IT 2,000,000.00 0663650W4 IT 2,000,000.00 345397RV7 IT ll-S1·11-200(J ll:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL Ol-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LIQUID OPER-PIMCO FEDERAL HOME LN MTG CRP DISC MAT 08/01/2000 LIQUID OPER-PIMCO CIT GROUP HLDGS MTN# SR 000 5.625% 02/02/2001 DD 02/02/9 LONG TERM OPER-PJMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PIMCO DREYFUS TREASURY CASH MGMT LIQUID OPER-PlMCO FEDERAL NATL MTG ASSN DISC N MAT 08/03/2000 LONG TERM OPER-P.Th4CO BANKERS TR NY CORP GLOBAL NT FLTG RT 05/l J/2003 DD 051111 LONG TERM OPER-PIMCO FORD MTR CR CO GLOB/\.L NTS FL TG RT 02/13/2003 DD 02/13/ TRADE DATE/ SETTLDATE/ COMPLDATE 0 l-Aug-2000 OJ-Aug-2000 01-Aug-2000 02-Aug-2000 02-Aug-2000 02~Aug-2000 03-Aug-2000 01-Aug-2000 03-Aug-2000 03-Aug-2000 01-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 03-Aug-2000 I l-Aug-2000 I 1-Aug-2000 l I -Aug-2000 14-Aug-2000 I 3-Aug-2000 14-Aug-2000 II PAGE. 40 AMOUNT/ COST/ GAIN/LOSS 16,658.05 0.00 0.00 4,92 1.88 0.00 0.00 7,010.41 0.00 0.00 1,095.89 0.00 0.00 49,193.43 0.00 0.00 34,851.39 0.00 0.00 34,605.28 0.00 0.00 Executive Workbench OCSGOOO I 0000 OCSD-CONSOLJDATED SHARESfPAR SECURITY ID TRANSCODE I, 730,000.00 79549BBGI IT 400,000.00 525 17PLMI IT 3,000,000.00 81240QJAI IT 169,580.49 3128DDQ55 IT 1,600,000.00 97665RHF2 IT 37,018.25 3133TKKU3 !T 4R,R56.65 3133T02D5 IT I J-Sep-2000 I 1:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PIMCO SALOMON SMITH BARNEY HLDGS I 3.650% 02/14/2002 DD 02/14/ LIQUID OPER-PIMCO LEHMAN BROS HLDGS MTN TR 002 6.400% 08/30/2000 DD 0912619 LONG TERM OPER-PIMCO. SEARS ROEBUCK ACCEP CORP MTN 6.630% 07/09/2002 DD 07/09/9 LONG TERM OPER-PIMCO FHLMC GROUP #G5-0476 7.000% 02/0112003 DD 02/01/ LONG TERM OPER-PIMCO WISCONSIN EL PWR DISC 08/15/2000 LONG TERM OPER-PIMCO FHLMC MVLTICLASS CTF 2146 QT 6.000% 11/15/2011 LONG TERM OPER-PIMCO FHLMC MULTICL MTG P/C 1574 E 5.900% 06/15/2017 TRADE DATE/ SETTLDATE/ COMPLDATE l 4-Aug-2000 14-Aug-2000 14-Aug-2000 15-Aug-2000 I 5-Aug-2000 15-Aug-2000 15-Aug-2000 15-Aug-2000 15-Aug-2000 15-Aug-2000 01-Aug-2000 l 5-Aug-2000 15-Aug-2000 15-Aug-2000 J 5-Aug.-2000 15-Aug-2000 01-Aug-2000 I 5-Aug-2000 l 5-Aug-2000 01-Aug-2000 I 5-Aug-2000 PAGf,: 4/ AMOUNT/ COST/ GAIN/LOSS 34,184.17 o.oo 0.00 12,800.00 0.00 0.00 99,450.00 0.00 0.00 47,903.10 0.00 0.00 13,432.00 0.00 0.00 I 1,680.49 0.00 0.00 l,373.17 0.00 0.00 Executive Workbench OCSGOOOJOOOO OCSD-CONSOL!DATED SHARES/PAR SECURITY ID TRANSCODE 5,723.00 31348SWZ3 IT 28,899.34 39350S2Y7 lT 44,950.00 3133TCE95 lT 14.00 3133TCE95 IT 4,284.65 31677EAA4 IT 3,800,000.00 37042WZKO lT 12,295.31 3133Tl7A4 IT ll-Sep-2000 11 :56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTJO N/ BROKER LONG TERM OPER-PIMCO FHLMC GROUP #78-6064 6.384% OJ/01/2028 DD 12/01/ LONG TERM OPER-PIMCO GREEN TREE CORP 99-D CL A-I 6.290% IO/I S/2013 DD 08/26/9 LONG TERM OPER-PIMCO FHLMC MULTICLASS CTF E3 A VAR RT 08/15/2032 LONG TERM OPER-PIMCO FHLMC MULTICLASS CTF E3 A VAR RT 08/15/2032 LONG TERM OPER-PIMCO FIFTH THIRD BK AUTO TR 96A C 6.200% 09/01/2001DD03/15/9 LONG TERM OPER-PIMCO GENERAL MTRS ACCEP #TR 00562 FLTG RT 02/14/2003 DD 02/14/ LONG TERM OPER-PIMCO FHLMC MULTICLASS CTP SER 162 6.000% 11/15/2023 DD 11101/9 TRADE DATE/ SETTL DATE/ COMPLDATE 15-Aug-2000 01-Jul-2000 1 S-Aug-2000 I S-Aug-2000 15-Aug-2000 15-Aug-2000 I 5-Aug-2000 01-Jul-2000 15-Aug-2000 15-Aug-2000 OI-Jul-2000 15-Aug-2000 15-Aug-2000 l 5-Aug-2000 I 5-Aug-2000 15-Aug-2000 15-Aug-2000 15-Aug-2000 l 6·Aug·2000 0 l-Aug-2000 I 6-Aug-2000 PAGE: 42 AMOUNT/ COST/ GAIN/LOSS 1,678.17 o_oo 0.00 1,419.37 o.oo 0.00 15,462.04 0.00 0.00 14.00 0.00 0.00 107.16 0.00 0.00 66,082.38 o.oo 0.00 12,295.31 0.00 0.00 Executive Workbench OCSGOOOJ 0000 OCSD-CONSOLIDATED SHARES/PAR SECURITY ID TRANSCODE 43, 729.36 3837H4NX9 IT 3,950,000.00 370425QV5 IT 2, 000, 000. 00 3837H3C70 lT 27,859.60 36225CAZ9 IT 24,577. 75 36225CC20 IT 4,455.17 36225CNM4 IT 21.159.52 36225CN28 IT 11-Sep-2000 11;56:01 II ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PJMCO GNMA GTD REMIC TR 2000-9 Fl I VAR RT Q2/J 6/2030 LONG TERM OPER-PIMCO GMACNTS FLTG RT 08/18/2003 DD 08/17/ LONG TERM OPER-PIMCO GNMA OTO REMIC TR 2000-2 PA 7.000% 12/20/2022 LONG TERM OPER-PIMCO GNMA IT POOL #0080023 7.125% 12/20/2026 DD 12/01/ LONG TERM OPER-PlMCO GNMA IT POOL #080088M VAR RT 06/20/2027 DD 0610119 LONG TERM OPER-PIMCO GNMA 11 POOL #0080395 6.500% 04/20/2030 DD 04/01/ LONG TERM OPER-PIMCO GNMA II POOL #080408X 6.500% 05/20/2030 DD 05/01/ TRADE DATE/ SETTL DATE/ COMrLDATE I 6-Aug-2000 16-Aug-2000 I 6-Aug-2000 18-Aug-2000 I 8-Aug-2000 I 8-Aug-2000 21-Aug-2000 Ol-Aug-2000 2 l-Aug-2000 21-Aug-2000 0 l -Aug-2000 21-Aug-2000 21-Aug-2000 0 I -Aug-2000 21-Aug-2000 21-Aug-2000 Ol-Aug-2000 2 I -Aug-2000 21-Aug-2000 0 l-Aug-2000 2 1-Aug-2000 II PAGE: A MOUNT/ COST/ GAJN/LOSS lS,288.02 0.00 0.00 69,264.08 0.00 0.00 11,666.67 0.00 0.00 7,899.25 0.00 0.00 11,223.83 0.00 0.00 6,747.26 0.00 0.00 54,055.47 0.00 0.00 Executive Workbench @ ORANGE COUNTY SANITATION DISTRICT PAGE: 44 PORTFOLIO DETAIL OCSGOOO I 0000 01-AUG-2000 -31-AUG-2000 OCSD-CONSOLlDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO o.oo CHRYSLER FINL LLC MTN#TR006 2 l-Aug-2000 18,429.46 17120QE80 FLTG RT 08/08/2002 DD 04/08/ 20-Aug-2000 0.00 IT 2 I -Aug-2000 0.00 LIQUID OPER-PIMCO 600,000.00 EASTMAN KODAK CO D!SC 23-Aug-2000 7,095.83 27746AHP7 08/23/2000 23-Aug-2000 0.00 IT 23-Aug-2000 0.00 LONG TERMOPER-PIMCO· 10,300,000.00 FEDERAL HOME LN MTG CORP DIS 24-Aug-2000 87,962.00 313396034 MAT 08/24/2000 24-Aug-2000 0.00 IT 24-Aug-2000 0.00 LONG TERM OPER-PIMCO 2,000,000.00 FHLMC MUL Tl CLASS CTF TI I A6 25-Aug-2000 10,833.33 3133TDPV2 6.500% 0912512018 25-Jul-2000 o.oo IT 25-Aug-2000 0.00 LONG TERM OPER-PIMCO 2,512.39 GREYSTONE SVCNG CORP FHA #95 25-Aug-2000 10,755.35 39810#AE4 7.430% 06/01/2003 DD 02/29/0 Ol-Aug-2000 0.00 IT 25-Aug-2000 0.00 LONG TERM OPER-PIMCO 2,000,000.00 FORD MTR CR CO TERM ENHANCED 28-Aug-2000 35,022.36 345397SC8 FLTG RT 08/27/2006 DD 08/27/ 27-Aug-2000 0.00 IT 28-Aug-2000 0.00 LIQUID OPER-PIMCO 400,000.00 LEHMAN BROS HLDGS MTN TR 002 30-Aug-2000 (,066.67 52517PLM1 6.400% 08/30/2000 DD 0912619 30-Aug-2000 0.00 IT 30-Aug-2000 0.00 ll-Sep-2000 IJ :56:0/ Executive Workbench OCSGOOOJ 0000 OCSD-CONSOlJDATED SHARESfPAR SECURITY ID TRANSCODE 582.62 302998GE3 IT 0.00 990000PJ4 CD 0.00 79549BBG1 CD 0.00 9128272M3 CD 0.00 9128273A8 CD /l-Sep-2000 11:56:01 ORANGE COUNTY SANITATION DISTRICT PORTFOLIO DETAIL 01-AUG-2000 -31-AUG-2000 TRANSACTION DESCRIPTION/ BROKER LONG TERM OPER-PlMCO WMP/HUNTOON PAIGE#000-1 11 50 7.500% 12/01/2030 DD 10/21/9 LONG TERM OPER-PlMCO SHORT TERM FDS JNT ADJ NET OF OVERNIGHT INTEREST LONG TERM OPER-PlMCO SALOMON SMlTH BARNEY HLDGS T 3.650% 02/14/2002 DD 02/14/ LONG TERM OPER-PIMCO US TREASURY INFLATION INDEX 3.375% 01/15/2007 DD 01/15/ LONG TERM OPER-PIMCO US TREASURY INFLATION INDEX 3.625% 07/15/2002 DD 071151 TRADE DATE/ SETTLDATE/ COMPL DATE 30-Aug-2000 0 l-Aug-2000 30-Aug-2000 31-Aug-2000 31-Aug-2000 3 l-Aug-2000 31-Aug-2000 3 l-Aug-2000 31-Aug-2000 31-Aug-2000 31-Aug-2000 31-Aug-2000 PAGl:: 45 AMOUNT/ COST/ GAJN/LOSS 6,084. 16 0.00 0.00 9.36 0.00 0.00 10,587.60 o.oo 0.00 140,990.00 0.00 0.00 49,692.00 0.00 0.00 Executive Workbench PACIFIC INVESTMENT M ANAGEMENT COMPANY INVESTMENT MANAGEMENT PROGRAM Orange County Sanitation District STRATEGY REVIEW FOR THE PERIOD APRIL 1, 2000 -JUNE 30, 2000 FINANCE, ADMINISTRATION & HUMAN RESOURCES COMMITTEE SEPTEMBER 13, 2000 AGENDA BOND MARKET REVIEW II CURRENT OUTLOOK I STRATEGY PACIFIC INVESTMENT MANACEMENT COMPANY SECOND QUARTER PERFORMANCE MIXED U.S. TR~SURY YIELD CURVE 8.0 r---'----------------------------1 ~ 7.0 P3, 'O Qj ~ 6.5 • Fed continued to raise short-term rates while Treasury increased buyback program 6.0 /,..--·-·-~--=---··-.""" -~==- ---~ --e~----.. -.... ------... 5.9 ---6/30/2000 5.8 ......... 3/31/2000 --12/31/1999 5.0 ~----------------------------~ 3m 6m lY 2Y SY 10Y JOY + U,Sr SWAP YIECD CURVE» 7.4 • Swap cu rve continues to track real economy more closely than Treasuries ~'·'~ >/ ··-·----..... -.. --··-··--.• -.................. ··-. :: 7.3 • Swap cu rve flattened as long end rallied and front end rose • High quality provides greatest protection in adverse credit environment • Lower volatility led to strength in the mortgage sector 6.0 5·0 Jm 6m 1Y 2Y SY ·I lOY ---6130/2000 ......... 3/31/2000 --12/J 1/1999 'SECTOR INDEX RfltlRNS -1.2 JOY ~ '------------------------------~ Treasuries Mortgages-Invest. Grade High Yield Hedged Non-Upper Tier Fixed Rate Corp. U.S.$ Emg.Mkt.•• • Swap yields represent a fixed rate at which a AA-rated corporation can exchange floating rate debt for fixed rate debt. Swap rates are highly correlated with most non· Treasury sectors in the bond market. •• Created by PI MCO to characterize the higher quality portion of the emerging market sector. Index is weighted as follows: Argentina, Brazil, Chile, Colombia, Panama, Peru, Tunisia each 5%; Bulgaria 10%; Philippines and Poland 12.5%; Mexico and Korea 15%. SOURCE: JP Morgan, Lehman Bros., Bloomberg Financial Markets 7.2 P ACIFIC I NVESTMENT M ANAGEMENT COMPANY STRATEGY RECAP -SECOND QUARTER LONG-TERM OPERATING FUND Period Ended June 30, 2000 •f tPO,RTFQqo. STRUCTURE i+~ *:; DURATION .. BELOW INDEX MATURITY MIX .. BROADER-THAN-INDEX • Underweight Corporate Sector SECTOR I ISSUE .. • Overweight Agency Securities • Overweight Mortgage Sector 2 RELATl'VE IMPACT }~; SfC0N:P QUAllTER' 2000 .. ... POSITIVE POSITIVE POSITIVE PACIFIC INVESTMENT MANAGEMENT COMPANY STRATEGY RECAP -SECOND QUARTER LIQUID OPERATING FUND Period Ended June 301 2000 DURATION ... MATURITY MIX ... SECTOR I ISSUE ... AT INDEX SLIGHTLY BROADER-THAN-INDEX GREATER-THAN-INDEX EXPOSURE TO AGENCY DISCOUNT NOTES AND COMMERCIAL PAPER 3 RELATIVE IMPACT SECOND Qt,JARTER 2000 .,, NEUTRAL SLIGHT POSITIVE POSITIVE PACIFIC INVESTMENT MANAGEMENT COMPANY REVIEW OF PERFORMANCE Through June 30, 2000 • Long-Term Operating Fund Since* Inception 9/30/95 3 Yrs.* 2 Yrs.* 1 Yr. 9 Mos. 3 Mos. 1 Mo. 6/30/00 Market Value Orange County $358,235,934 Sanitation District (L-T) (%) 6.2 6.2 5.2 5.4 4.2 1.9 1.3 Merrill 1 -5 Year Gov't. I Corp. Index (%) 5.8 5.7 4.8 4,6 3.4 1.7 1.3 • Liquid Operating Fund Since* Inception 9130195 3 Yrs.* 2 Yrs.* 1 Yr. 9 Mos. 3 Mos. 1 Mo. 6/30/00 Market Value Orange County $33,305,076 Sanitation District (liq-op) (%) 5.6 5.6 5.6 6.0 4.6 1.6 0.6 3 Month T-B i II (%) 5.2 S. l 5.0 5.3 4.1 1.4 0.5 • Annua liz.ed. 4 PAClflC INVESTMENT MANAGEMENT COMPANY CURRENT OUTLOOK INTEREST RATE MATURITY MIX SECTOR ECONOMIC OUTLOOK • U.S. GROWTH TO SLOW -Higher interest rates -Consumer and investment spending lo slow • FED'S MONETARY POLICY RESTRICTIVE • MARKET TECHNICALS CONTINUE TO INFLUENCE LONG RATES STRATEGY ... NEAR INDEX ... BROADER-THAN-INDEX ,._ EMPHASIZE MORTGAGES, ESPECIALLY GNMA'S CONCENTRATE CORPORATE HOLDINGS ON SHORTER MATURITIES FAVOR ADJUSTABLE RATE MORTGAGES HOLD HIGH QUALITY ASSET-BACKEDS 5 PACIFIC INVESTMENT MANAGEMENT COMPANY Callan Associates Inc. Investment Measurement Service Quarterly Review Orange County Sanitation District June 30, 2000 The following statistical analysis was prepared by Callan Associates Inc. utilizing secondary data from statements provided by the plan trustee and/or custodian, CAI computer software and selected infonnation in CAI' s database. This report may also contain returns and valuations from outside sources as directed by the client. CAI assumes no responsibility for the accuracy of these valuations or return methodologies. Reasonable care has been taken to assure the accuracy of the CAI computer software and database. CAI disclaims responsibility, financial or otherwise for the accuracy or completeness of this report. Copyright 2000 by Callan Associates Inc. 1 1 l J J Capital Markets Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Active Management Overview Market Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Domestic Fixed-Income ..................................................... 14 Asset Class Risk and Return ................................................. 15 Investment Manager Asset Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Investment Manager Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Manager Analysis PIMCO-Liquid Operating Monies ............................................. 18 PIMCO-Liquid Operating Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Bond Portfolio Characteristics ................................................ 20 Portfolio Characteristics Detail ............................................... 21 j J J Captain Greenspan Aims for 2nd Soft Landing As signs of a slowing U.S. economy became evident in the sec- ond quarter of 2000, Alan Greenspan looks to become the first Fed Chairman to successfully pilot the economy to not one, but two consecutive soft landings. As expected, observers have switched from worrying about excessive growth to recession, wringing hands over higher inflation, debt· burdens, the trade deficit, and the impact of a stock market correction. sce page 11 Looking for the Next Survivor! Gone are the days, it seems, when anyone could become a mil- lionaire in the New Economy. Last quarter, the U.S. economy Jost more of its appeal as an island paradise offering perfect weather for stocks pursuing unbridled long-term growth. Ac- cordingly, investors began to vote more stocks out of their port- folios last quarter. The Callan Broad Market Index lost 4.42%, including dividends. This quarter's loss offsets the market's first quarter gain. sce pn ge .2 Domestic Bonds Gain Ground Again Bonds continued to rebound in the second quarter from the lows of 1999. The Lehman Brothers Aggregate Bond Index advanced 1.74%, with strong support from mortgage-backed securities. The credit sectors have been slower 1.0 come back, as their spreads to Treasurys remain at recession-like levels. While high yield improved over ilS poor first quarter, the beleaguered sector still trailed all others. The Real Estate Com er -REITs Rule! After a two-year slump, RE!Ts jumped out of their seats with a 10.53% return in the sec.end quarter, based on the NAREIT Eq- uity Composile Index. Increased volatility of the broader equity market and strong investor sentiment helped to drive up the REIT market. The public REIT market significantly outperformed the private real estate market, which gained only 1.87%, according to Callan 's preliminary estimates of private equity real estate. Value Prevails in Tough Fore ign Markets International equity markets floundered in the quaner, as the anticipation of further interest rate increases by the U.S. came to fruition. The MSCI EAFE Index fell 3.96%. Value generally outperformed growth, as the MSCI EAFE Growth Index posted a 9.27% loss compared to a 1.40% gain in the Value Index. "New Economy" stocks, primarily those in the Internet 1echnology, telecommunications, and media sectors, Jed the global decline. ~<.>e pcige G Bonds Abroad Tread Water Tn local terms, non-U.S. bonds rose moderately, as yield curves abroad were relatively calm. However, the rising and falling tides of currencies rocked U.S. investor returns. For the first time since its inception, the euro rose over the quarter, mod- estly enhancing performance for dollar-based investors. The dollar, tl10ugh, remained strong against the pound and yen, caus- ing the unbedged Salomon Non-U.S. Government Bond Index to fall 0.79%. ~ec page 8 Alternative Thoughts -Introducing FOFs New commitments in second quarter fund-raising showed no sign of slowing down. The second quarter yielded $53.6 billion in new private equity commitments, a 235% increase over the $16.0 billion raised in the first quarter. Within these commit- ments, fund-of-funds (FOF) enjoyed the most dramatic percent- age increase over the same period, exploding from $476 million to $5.2 billion, or 1092%. Increasingly popular, FOFs provide exposure to private equity otherwise not available to the small investors. see paf/e JO AllThings Considered-W ithdrawal Pains? Spoiled with double.digit gains in each of the past five calendar years, most plans are now feeling deprived of their usual pam- pered returns so far in 2000. With both the domestic and inter- na1ional equity markets falling in the second quarter, most plans ended up in the red during the quarter, based on Callan esti- mates. This second quarter loss erased much of the first quarter gain. Supported by their relatively low equity exposures, Taft- Hartley plans suffered the least, with a median loss of 1.22%. see vage .1.2 Broad Market Returns -Second Quarter 2000 E -J'k = ;;. -2'< U.S. &juiry (Cali:Jn Br~ Mw-ker) Noo-U.S. EqUil)I (MSCJ EAFE) U.S. Fi~ed \LB Ag&«Ea<c) Noo-U.S. Fixed (SSB Noo-U.S.) T.9l'K Real Estate (C:sll:m Rtal Estaccl C:lsh l90·04YT·Bllls) II ,\i\j 111 \\t'l~C'1 \l(•UIU~ l~l\\ \ '·1111 »\(,11 \TL I ,\ l'I Strff I l<~J C~l.lfl•li'<I \ 1JHu;, oll~•'/;.\ ~IOJ ,~,, \\ 1 II • •l 1-.nn r Looking for t he Next Survivor! Gone are the days, it seems, when anyone could become a millionaire in the New Economy. Last quarter, the U.S. economy lost more of its appeal as an island paradise offering perfect weather for stocks pursuing unbridled long- tenn growth. With a jobless rate at 30-year lows and wage cost pressures intensifying, the feisty economy prompted the Fed to raise short-tenn rates more quickly last quarter. Since globally competitive markets have cur- tailed pricing power for passing higher costs onto consumers, U.S. corpo- rate earnings growth faced a mounting risk of drying up. Accordingly, investors began to vote more stocks out of their portfolios last quarter. Based on the Callan Broad Market Index of the 2,000 largest U.S.-tn1ded stocks (less AD Rs and other foreign shares), the equity market lost 4.42%, including dividends. This quarter's loss offsets the market's first quarter gain. As investors looked for corporate survivors in the more challenging eco- nomic climate, a company's market capitalization did not matter. The weight loss was evenly felt across all capitalization sectors last quarter. The largest 150 stocks in the Callan Large Cap Index fell 4.38%, while the next 350 in the Callan Medium Cap Index dropped 4.50% and the bottom I ,500 in the Callan Small Cap Index slumped 4.55%. However, what a company did for a living was important to the more fin- icky investor. In a violent backlash against past market leaders, investors brutally dumped Internet-related stocks not contributing profits today and selectively backed those stocks that could thrive with solid earnings now and in the near future. Of the eleven economic sectors in the Callan Broad Market, the Health Care sector (+21.03%) won special immunity from investor wrath. Behind Health Care, the distant runner-up was the Public Utility sector ( +4. 7 4% ). Investors also favored the Energy sector ( + 3 50%) when recently higher oil prices seemed sustainable despite Saudi talk of increasing sup- ply_ Though popular in recent past quarters, the Communications sector (-16.02%) experienced the most ruthless reaction from stock voters. Par- ticularly rejected in this sector was the long distance telecomm1111icatio11s industry (-24.22%), with AT&T losing 43.39%. Facing the prospect of a slowing economy, Basic Materials (-11.01%) and Consumer Cyclicals (-11.44%) also suffered heavy defections among investors. Once the market's most respected tribal leader, Technology (-10.82%) also became a hapless castaway in the quarter. No longer enamored with the rosy promise of e-commerce, investors gave a firm boot to Technology's biggest industry, computer software and services (-19. l 0% ). Especially un- dermined was Microsoft (-24.71 %), which was found guilty of antitrust acts. Among e-tailers, Amazon.com (-45.80%) was a prominent shipwreck, illustrating the growing investor demand for cash profits now. Particularly emotional among the stock voters was deciding between the growth and value tribes. With its preferred Technology and Communica- tions sectors suffering significant setbacks, the growth-oriented style gen- erally struggled. At the quarter's outset, value stocks enjoyed a brief revival; however, as the quarter wore on, investor confidence faded and stock prices wilted. To isolate these style returns, Callan divides its capitalization indices evenly by price-to-book, creating sutrsectors of growth-and value-oriented stocks. Among the smaller stocks, the Callan Small Cap Value Index (+l.30%) actually gained ground in the quarter, while the Small Cap Growth Index (-10.15%) was plagued by its combined 50% weight in Technology and Communications. Among the market's larger kin, the Callan Large/Me- dium Cap Growth Index (-4.80%) only modestly trailed the Large/Me- dium Cap Value Index (-4.11 % ). Callan Style Group Returns Second Quarter 2000 ll'ii.· ~------------------~ •1 ~-;-. :l'.• .... -• --·- -·-- """ ~----~----~----~----' l.ori< C':>p-Orowll\ i...zi• f.~.r""' Sm:tU C'>p-Gro,.th Small C.p· v.JU< Style Sly le Stylo 10\h f'trrtnJi)r o,.17 0,62 2.-0 ;.02 2.Sl.h Perce:Plilt ·l,41 ·l.N -1 ll 3.0S Medfan .).0) ·t.•6 ·•111 i;o 75th Ptrreotlle -4.16 ·J.OS -s.n ·l.80 90tJ1 Ptrce-ndle .$.{J4 .4,19 -11.77 -).18 S&PCrowlh S&PV:il•• kuucll 2000 G<tM·ib Rui><il 2000 "'1kAc Bi!l'K'hnurb-• ,,, ·l.~7 ·4.!0 -7.)1 Capitalization Sector Performance Second Quarter 2000 ~ (IQ'\ ,...,~ ~tor1btAI ~lllrktt Clph"llzu1lon l.9S .. , ' Economic; Sector Performance -Callan Broad Market Second Quarter 2000 Hl.";2lt)!Ctrc Ulllhlu tti• .. •r.Y CO!\\U!fWt !'itl!pl"- C.J'u.I"""' 1'hn~~lton F1tunct .. ~ lh1'.1 ... ~Jt')' ~11u.z.~ ~~~=~ tt.>IHl.«li!Jb ·'I QI~ [ ""'""'~C)<ll<:.il• l~~~·IJ~ ....... ~!~~~=i---+--+--+-_....--1 O>htutilllk.ll~n s:crv:.•n 11' .!C:'l-I • J ! I f ~2CII ~l't;;o ·loi:. .,e; ~ ..si;c. JO't tY,;. ~ Return Rolling One-Year Re lative Returns vs.S&P 500 15~.,......---------------------~ ll" "" y,. .;;-,1 -s&PGrowlh S&Plluluc •11'.I< ---, -U'f d f -I "I) IU !Ii J.:., Jl4 ll\ ~ 1(1 ~ jl.IJ C.t ~I IJ.l l}J ~~ qi; ~ ._it ""' ~~ 0) 2 CAILAN A&50ClAT£5. " ...... , ....... ,.11 •• ,f\111'1'\I UUIKE'I.,,, U.S. EQUITY Style Median and Index Returns* for Periods ended June 30, 2000 Last Last Last Last 3 Last S Last 10 Quarter Ill Year Year Years Years Years I U ·I Large Cup-Broad Style -257 0.84-831 18.45 22.45 17J3 Large Cap-(;rowth Style -3.03 4.21 21.68 27.05 26.87 19.09 Large Cap-Value Style -1.86 -1.81 -7.47 8.88 16.18 14.67 Aggressive Growth Sryle -7.33 2.42 52.27 31.01 27.32 21.42 Conlrarian Style -056 -0.51 -6.68 6.76 13.68 13.88 Core Style -2.99 -0.02 8.61 19.45 23.41 17.77 Yield Style -0.66 -2.62 -9.39 855 15.40 14.00 CAI Broad Market Index -4.42 -0.19 9.24 19.46 22.80 17.31 CAI Large Cap Index -4.38 -0.51 10.37 23.09 26.90 18.73 S&P500 -2.66 -0.43 7.24 19.67 23.80 17.80 NYSE -0.34 -0.35 0.85 13.48 19.35 15.45 Dow Jones Industrials -3.97 -8.45 -3.34 12.67 20.27 16.57 I' •• f Mid Cap-Broad Style ·2.84-10.90 29.40 20.93 23.11 19.75 Mid Cap-Growth Style -4.93 14.10 62.58 33.56 29.49 22.27 Mid Cap-Value Style -0.62 1.15 -6.79 8.87 14.79 15.13 CAI Medium Cap Index. -4.50 -0.27 -3.04 12.04 16.45 14.82 S&P MidCap 400 -3.30 8.97 16.97 20.34 2l.l8 18.02 I I \I J 1 Small Cap-Broad Sryle -1.86 7.79 17.98 ll.57 17.71 16.63 Small Cap-Groll'th Style -6.07 10.41 54.14 20.87 21.00 20.48 Small Cap-Value Style 1.30 5.47 0.96 6.56 12.99 14.51 CAI Small Cap Index -4.55 1.28 20.49 15.89 17.94 15.94 CAI Micro Cap Index -5.20 2.62 14.50 10.37 15.44 14.88 S&P 600 Small Cap Index. 1.01 6.88 14.38 10.1 1 15.40 13.99 Russell 2000 -3.78 3.03 14.32 10.57 14.28 13.56 NASDAQ -13.23 -2.46 47.94 40.55 34.08 25.05 " Basic Materials -11.01 -20.18 -19.24 -5.22 2.42 7.24 Capital Goods -0.86 1.30 9.54 14.60 21.22 14.49 Communications -16.02 -11.62 -6.20 27.79 Consumer Cyclicals -11.44 -17.97 -12.68 11.73 14.29 12.59 Consumer Staples 3.07 -4.48 -5.95 7.63 16.47 14.47 Energy 3.50 10.16 10.46 10.78 17.54 12.40 Financials -3.25 -1.19 -9.46 10.25 22.00 19.16 Health Sector 21.03 24.86 19.15 21.51 Utilities 4.74 15.72 5.85 12.97 13.94 11.73 Technology -10.82 2.16 47.73 47.19 39.20 27.03 Transportation -1.95 -6.76 -20.14 -1.39 8.30 10.04 U.S. Equity Index Characteristics as of June 30, 2000 Callan Callan Callan Callan Callan S&P Broad Large Medium Small Micro 500 Cap Range ($MM) 51-524,352 8, 909-524,352 1,312-32,648 51-11,865 9-3.025 470-524,352 #Issues 2,000 150 350 1,500 1,000 500 % of Callan Broad 100% 66% 20% 14% NIA N/A Wtd Avg Mkt Cap $117.3B $173.4B $12.0B $2.88 $0.4B $145.7B Price/Book Ratio 10.8 11.7 10.9 6.2 5.0 10.3 PIE Ratio (forecasted) 33.9 38.2 24.7 22.4 17.3 34.9 Dividend Yield 1.0% 0.9% 1.2% 1.2% 0.9% 1.2% 5-Yr Earnings (forecasted) 20.4% 19.6% 22.6% 21.5% 20.0% 17.9% • Returns less than one year arc n01 annualiled. ....... ,, 'P'""'~~"'"' f.\ JlfT,\L ll.\RKRJ' ... ,~,, CALLAN AS50CIATE5- Domestic Bonds Gain Ground Again Bonds continued to rebound in the second quarter from the lows of 1999. Credit sectors have been slower to come back, as their spread to Treasurys remains at recession-like levels. The quarter began with signals that the economy was not reacting to the Fed's tightening policy. These inflationary ind.ications sent U.S. Treasury yields upward all along the yield curve, es- pecially in the shorter maturities, as investors geared up for another interest rate increase. The FOMC meeting of May 16"' resulted in an aggressive 50 basis point increase in the discount rate. The move achieved some success cooling the overheating economy, as market indicators thereafter began of- fering evidence of a slow down. T he yield curve steepened with the news of a slowdown, as short-term yields fell to earlier levels. As a result, the June 28'" FOMC meeting continued to hold the discount rate at its current 6% level but retained an aggressive tightening bias. Longa-tenn yields fell only slightly despitethe government's aggressive buyback program, which targeted shorter-tenn maturities in an effort to use the growing surplus to pay down the debt. Treasurys peaked after the buyback announcement, but after prices adjusted to the reduced supply expectations, investors turned their attention to corporate bonds and asset-backed securities. The Lehman Brothers Aggregate Bond Jndex did weli in June, as it re- covered from losses in April and May. Although the return for the quarter was lower than last, falling to 1.74% from 2.21 %, June alone produced a return of 2.08%. The last time the index produced returns over 2% in a single month was September 1998, The Lehman Br others Corporate Bond Index fell in the first two months of the quarter, but recovered nicely in June with a return of2.51 %. Overall, the index finished the quarter with a 1.23% return. The Lehman Brothers Mortgage Bond Index also had a phenomenal month in June ( +2. t 4% ), yielding a 2.25% return for the quar- ter. The Merrill Lynch High Yield Master Index also mustered some strength in its own recovery, as it gained 0.63% by quarter's end. Of note in the corporate market this quarter was the record-breaking size of Deutsche Telekom 's investment grade deal ($ l 4.5 billion), which convinced other corporate issuers to test the waters. Also, $5.4 billion fo the high yield sector was brought to market in June. With the widening spreads between junk and Treasurys, as well as defaults falling below the October peak, more money poured into high yield mutual funds. Mortgage pass-throughs also fared well this quarter, even as Washington debated the implied guarantee of the Federal government to back most Agency issues. Fannie Mae began its first ever Dutch auction for its bonds, which are scheduled to occur online on a weekly basis .. The bond market continues to recoup the losses it experienced in the past eighteen months. Though, with a slowdown in the equity markets and spreads .at such wide levels, bond buyers clearly remain cautious. Callan Style G roup Returns Second Q uarter 2000 .... ..------------------,-----. ~~'---------------------...J 1ov.rc:r«11tile lSth Ptn"cnl11e Mtdbn )Sth PcH'cfH\lc- 90th Pcrcc-nrilc. 8enchm=rkJ • l.5'; 2.<no " ~ 1.0'$ 0.0'<• l11U"nntd1~tc l'or< Bond E~tended f\1.lturlly Slyl• Soylc Style: 1.87 1,82 1,7) 1,76 I.OJ J)6 1.66 147 Ml 1 SJ l.JJ 0~7 l,.lO l.h o.~1 LB Go•/Corp lnl<r 1,69 LB Go,ICorp Bd 1.45 LB tla\•/Corp Long 0.91 Sector Pe rfo rmance Second Quarter 2000 LB Universal llldcx = L65% LB Aggreg~te lndtX • l.74% LB Gov Bd t,B Corp Bd LB Corp High 7.0 6.5 f' ... ~ ( s.o l 45 Yleld U.S.TreasuryYield Curves .,. ___ ...•. 4.-············-· ·------·-· ~-.:-..... - __..._End 2nd Qu•rter 2000 --•--BegiMing 2nd Qualler 2000 ····•-· End 2nd Qunrtor I 999 lllgh Yitld S\YI< 2 68 l.ll 1.;1 .oos -1.0; LB C'orp1 ~:~h Vleld 2.~S'i' LB Mlg B~C'keli Se< 4.0 -1-----+-----<1-----------.f----1' 0 5 10 15 20 llfolurity (Years) 25 30 Effective Yield Spread over LB Treasury Index 14.~-------------------~ LB Corpor.ite lllgh Yield -LD Corp Boa Bonds -LB Corp A Bonds -LBCerpAoaBonds ... 4 CAllAN ASSOCIXlES~ ...... , .... ,,., .. , •• , 1'\111'1'11. ll IUM:'I', .. , U.S. FIXED INCOME Style Median and Index Returns* for Periods ended June 30, 2000 Last Last Last Last 3 Last 5 Last 10 Quarter l/2Year Year Years Years Years Active Duration Style 1.56 4.05 4.36 6.06 6.15 8.03 Core Bond Style J.47 3.84 4.60 6./2 635 8.09 LB Aggregate 1.74 3.99 4.57 6.04 6.25 7.82 LB Govt/Corp l.45 4.18 4.31 6.03 6.10 7.84 LB Govt 1.57 4.97 5.00 6.38 6.21 7.77 LB Corp 1.23 2.68 3.00 5.34 5.98 8.18 SSB Broad Investment Grade 1.70 3.93 4.51 6.03 6.23 7.87 ,,, II Extended Malllrity Style 0.83 6.59 4.69 7.29 7.14 9.58 LB Gov/Corp Long 0.91 6.55 4.62 7.10 6.84 9.22 LB Gov Long 0.98 8.78 6.31 8.09 7.26 9.49 LB Corp Long 0.76 2.63 1.63 5.09 5.98 8.67 SSB High Grade 0.44 2.86 1.57 5.04 5.75 8.47 I J..! • l Intermediate Style 1.66 3.22 4.30 5.69 6.00 7.49 LB Gov/Corp Intermediate 1.69 3.22 4.22 5.63 5.82 7.28 LB Gov Intermediate 1.82 3.49 4.48 5.75 5.82 7.16 LB Corp lmermecliace 1.45 2.71 3.71 5.42 5.94 7.82 ' •J " Defen.rive Style 1.74 3.04 5.21 5.72 5.94 6.80 Altivc Cash Style l.62 3.10 5.82 5.75 5.79 5.90 Money Market Funds (net of fees) 1.41 2.74 5.23 5.02 5.05 4.74 ML Treasury 1-3 Year 1.72 2.99 4.91 5.59 5.76 6.51 90-day Treasury Bills 1.5 1 2.93 5.53 5.25 5.28 5.00 ~. • I High Yield S1yle 1.38 -0.35 1.33 5.16 8.81 12.07 LB Corp High Yield 1.15 .] .22 -1.03 3.16 6.52 10.31 CSFB High Yield 0.45 -0.85 -0.40 3.09 6.68 10.64 ML High Yield Master 0.63 -1.19 -1.37 3.51 6.75 10.43 1 •• il Mortgages Style 221 3.86 5.16 6.21 6.81 8.18 LB Mortgage-Backed Securities 2.25 3.66 5.02 5.97 6.57 7.75 LB Asset-Backed Securities l.80 3.35 4.78 5.75 6.06 U.S. Fixed-Income Index Characteristics as of June 30, 2000 Yield Modified Adj. Average %of % of Lehman Brothers Indices To Worst Duration Maturity LBG/C LB Aggregate LB Aggregate 7.24% 4.91 8.79 Yrs. 100.00 % 100.00% LB Govt/Corp 7.03 5.38 9.74 100.00 62.65 Intennediate 7.03 3.47 4.42 70.83 44.37 Long Term 7.03 10.02 22.63 29.17 18.28 LB Govt 6.50 5.32 9.00 62.97 39.45 LB Corp 7.94 5.49 10.99 37.03 23.20 LB Mortgage I 7.58 4.11 7.36 -34.39 LB Asset-Backed Securities 7.52 3.27 4.19 -1.49 LBCMBS 7.57 5.14 6.81 -1.47 LB Corp High Yield 12.63 4.69 7.76 -- *Returns less than one year ar~ not annualized. CAUAN A5SOClA'l'J~ J J Value Prevails in Tough Foreign Markets International equity markets floundered in the second quarter, as the antici- pation of further interest rate increases by the U.S. came to fruition. "New Economy" stocks, primarily those in the technology. telecommunications and media sectors, led the global decline. The MSCI EAFE Jndex feU 3.96%, bringing year-to-date returns to a 4.07% loss. The best performing industry group was Consumer Staples ( +9.8%) while the worst was the vola- tile Telecommunication Services (+21.7%). Value generally outperformed growth, as the MSCI EAFE Growth Index posted a 9.27% loss compared to a 1.40% gain in the Value Index. On balance, the dollar remained strong, rising against the pound and yen. Europe The MSCI Europe lndexfell 3.16% for the quarter (-1.86% in local terms). With positive economic growth across most of continental Europe and in- creasing concerns over rising inflation, the European Central Bank raised the benchmark refinancing rate twice, by 0.25% in April and by 0.50% in June to end at 4.25%. The euro held its own against the dollar, gaining 0.17%, while the sterling lost 5%. The spread between the Europe growth and value indices was 9.4%, as the telecommunications industry was battered during the quarter. Consumer Staples and Health Care fared well with gains of 9.8% and 8.8%, respec- tively. The best petforrning European markets were Belgium (+7.64%) and Norway ( +6.08%). Weak performance by telecoms hurt returns in Germany (-11.76%). The worst performing market was Ireland (-16.25%). Pacific Basin The MSCI Pacific Index lost 5.60% during the quarter. Australia was the best performing market with gains of 7.41 %, while the worst was Hong Kong with a 13 .46% loss. The strong performance in Australia is credited to the surge in bank stocks. Japan dropped 6.19% in doUar tenns but lost only 3.23% in local currency, as the dollar showed strength against the yen. As was the case in Europe, value outperformed in Japan by 14%, as tradi- tional value sectors such as Utilities and Consumer Staples gained (up 15.4% and 10.0%, respectively) at the expense of Telecommunications and Infor- mation Technology (down 16.1% and 10.2%, respectively). The high-fly- ing NITDoCoMo Jost approximately 30% during the quarter, as did Sony. Emerging Marke ts The emerging markets took a hit in the second quarter, as the MSCI Emerg- ing Markets Free lost 10.16%. Latin America (-7.39%) suffered less than Asia (-13.53%). Despite the continued recovery and improving fundamen- tals in Latin America, most markets were down for the quarter (with the exception of oil-dependent Venezuela). Pressure on telecoms globally and rising interest rates in tlle U.S. negatively impacted these markets. China (+26.28%) was the best performer in Asia. Callan Style Group Returns Second Q ua.rter 2000 ... , ..---------------------- 2';. fl".i t-------+--- ·~11. ., .. ~ ·11''.l ,___ _____ _.... _____________ _, 0100.1 Equily Style Non·ll.S Equhy St~lc Em<1~\;~"I"<" J01h Percentile 2.00 261 ·-S,•l) 2.Stl\ Ptrtt1ujle -0.13 -1.56 .7 74 Mt'di:m ...it9 ·4.~0 ·9fl1 7SU1 l'<rccnlllt '186 .<\,JI -ll.07 90th P~rttniilt -6"6 .9s.1 -l47S MSCIWOIJd MSCl Ei\Fll MSCI En1<11 Mllktll Frte Bcm.i'tm11"K.s • -l.i4 -3,96 -1016 Regional Performance (based on US$) Second Quarter 2000 MSCJ Elll<ri: .1-. -IO'if- MSC! f:ur~ MSC! Jap:m MSCI P•c fa.Jpn Mnrkets Fr« MSCI ACWI Free (ex US) --4.0R'ib MSC! EAfE c -3.96 •IO.I6t;: Rolling One-Year Relat ive Retur ns vs . MSCI EAFE US$ ».1 ...--------------------~ g "" z ""' "' " > ~ JtV; = (I;;. ~ -: 10· .. !! c ~~("'! ~ '!"1 _;i.-,,. -'JI/,; ~2~ ~ ~ 1~0-:l- \Ill ~I MSCIP>Cific -MSCI Europe -MSCIEJ\FE ... ., w '" Major Currencies vs. US$ Cum ulative Returns Over Last 25 Years -Japauese Yeo Ge.rmau MarldEuro -UKSll.'rlh111 ~ lOO'i• ·-------------- CAILAN ASSOCLJ\TES_ ....... , ....... "'"'" L\l'l'l'\I, II \llhl:T l J J INTERNATIONAL EQUITY Style Median and Index Returns* for Periods ended June 30, 2000 Last Quarter '• Global Styli.! -2.19 Non-U.S. Style -4.20 Core Style -4.09 Top Down Sty/<! -3.86 80110111 Up Style -1.56 Small Cap Style -5.54 MSCI EAFE-Unhedged -3.96 MSCI EAFE-Local -2.24 MSCI World-Unhedgcd -3.54 MSC! World-Local -2.69 MSC! AC World Free ex U .S.-Unhcdg,ed -4.08 MSCI AC World Free-Unhedged -3.81 , , ~ : It I Pacific Basin Style -9.79 J11pt111 S1y/e -6.46 l'ucific Rim Style -8.70 MSCI Pacific-Unhcdgcd -5.60 MSC! Pacific-Local -3.03 MSC! Japan-Unhedged -6.19 MSCl Japan-Local -3.23 • II ' : .. E11m11e Sryle -3.34 MSCI Europe-Unhedged -3.16 MSC! Europe-Local -1.86 a •. .-ltJ Emel'};ins Markers Datahus1: -9.87 MSC! Emerging Mnrket Free -10.16 ReturnAttribution for EAFE Countries Second Quarter 2000 Connlry (by weight) Total Local Currency Jn pan ·6.19 -3.23 -3.06 Germany -11.76 -1 1.91 0.17 Unhcd Kini:dom -6.54% -1.52% -5.11~ Frllllcc 3.07 2.89 0.17 Italy 4.18 -too 0.17 Spaiu -7.49 -7.65 0.17 Aus1r~lia 7.41 8.59 ·l.09 Netherlands 4.77 4.59 0.17 Swhzerland 5.19 3.46 2.25 Sweden -6.91 -5.50 ·1.49 Belgium 7.64 7.45 0.17 Auslri3 1.45 l.27 0.17 Denmark -3.10 ·3.08 -0.02 Hong Kong -13.46 -13.36 -0.ll Norway 6.08 7.44 -1.27 Finland -8.28 -8.44 0.17 Portugal -3.85 -4.01 0.17 Singaponi -2.12 -1.06 -1.07 Ireland -16.25 -16.40 0.17 New Zealand -4.63 0.63 -5.22 y Relumi; le5s rhan one year arc not onnunliz.:d. ~ .. ,., • ,., ·", j \11IT.\I. \I 11:1\1 ,T,, . Last Last l/2Ye ar Year -1.07 13.06 -3.33 24.15 -2.86 21.24 -4.85 17.08 -0.05 23.98 6.52 40.19 -4.07 17.15 0.24 17.94 -2.55 12.21 -0.40 12.62 -3.33 18. LI -2.68 12.37 -1 I .19 22.99 -6.62 36.45 -8.26 10.65 -6.03 21.61 -2.69 10.01 -5.37 26.62 -2.18 10.68 -1.58 21.84 -3.08 JS.JO 1.58 22.14 -7.29 15.29 -7,99 9.48 Last 3 Last S Last 10 Years Years Years 13.55 16.62 12.83 12.90 15.13 11.34 12.11 14.39 10.72 1 J.47 14.46 10.40 13.02 15.06 11.42 13.95 13.26 9.49 10.18 11.33 7.96 13.52 17.54 7.82 14.95 17.08 12.00 16.69 20.57 11.76 9.46 11.12 8.28 14.23 16.62 12.23 5.33 6.91 6.72 12.40 9.89 536 -5.26 0.90 9.12 1.80 2.42 2.34 0.87 6.80 -0.49 3.96 2.61 1.48 1.28 7.23 -2.10 17.86 20.94 14.02 16.08 18.45 12.85 2 1.34 24.46 15.34 -2.48 4.96 13.53 -4.96 0.99 8.94 Country Weights -EAFE As of June 30, 2000 Jo pan 35.1% France 9.7% Gcm1a11y 14.3$(. 7 \ } J Bonds Abroad Tread Water It was another good news/bad news quarter ln the international fixed-in- come markets. The weak U.S. dollar in June drove up the Salomon Non- U.S. Government Bond Index return but not enough to offset for the dollar's strength earlier in the quarter. For the quarter, the index was up 0.83% lo- cally, but off 0.79% in dollar terms. Europe T hough the European Central Bartle twice raised interest rates during the quarter by a total of75 basis points, the long end of the curve did not budge. In fact, the E uropean Government Bond Index managed to gain 0.62% over the quarter. For the first time since its inception, the etll'o held its ground over the quarter, adding just 17 basis points of performance for dollar-based investors. The story was less rosy for the dollar-based investors in the U.K. Although the U.K. market gained 1.92% in local terms, the pound weak- ened significantly, wiping out all of those gains and then some, with gilts losing 3.28% in dollar terms. Japan The yield curve remained viitually unchanged in the quarter, though the sho1t end rose slightly on speculation the Bank of Japan would raise rates (they didn't). The dollar bounced back to close the quaiter at I 06. I 2, pun- ishi11g unhedged U.S. investors with a 2.34% loss. The locnl market gained 0.74% on strong domestic demand stemming from the recent poor equity market performance. 1m: Callan Style Group Returns Second Quarter 2000 (11·~---- ·1~· .J.O~ -------------------~ I01h P1.'rctnlilc ~51h Percentile McJi.m 7:'1h Pi:rttl'llilo 'X'>th Pcr<tntilc Otnclunark" • Clot>JI 11iAcd S1vk' 1.55 0.2.\ 006 .0 IL .OAS SSU \\'or Oov -Unht'dftd ·0.15 Emerging Markets !X11n°llS Ax~d Style on -0.34 -0.63 ..at.4 • 1.0'1 Considering the asset class past history, it was a quiel quarter. The EMBI+ Index gained 0.43%, led for the second quruter in a row by Russia, now up 49.78% on the year. Colombia (-6.8%), Ecuador (-9.1%), and Nigeria (-17.4%) all were big Losers (with a capilal L) for 1he quarter. INTERNATIONAL FIXED INCOME Style Median and Index Returns* for Periods ended June 30, 2000 Last Last Last Last 3 Last 5 Last 10 Quarter l/2Year Year Years Years Years i• I Globul Sty/l! 0.06 -036 1.67 3.39 4.38 827 SSB World Gov1-Unhedged ·0.15 0.02 3.15 3.86 3.16 7.93 SSB World Govt-Local 1.02 2.98 2.95 5.66 6.90 8.56 ! I Non-U.S. Srylt: ·0.63 -1.96 0.41 2.22 2.76 8.92 SSB Non-U.S. Govt-Unhedged -0.79 -1.94 2.42 2.71 1.71 8.42 SSB Non-U.S. Govt-Local 0.83 2.10 2.05 5.29 7.25 9.02 ir " ,_ ' . JPM Emerg Mkts Bond Index 0.43 8.09 23.15 5.57 15.97 Return Attribution for Non-U.S. Gov't Indices Second Quarter 2000 Country Weights -SSB Non-U.S. Govt Com1try (by weight) Japan H;ily. Gerru;my France UJ1iled Kingdom Spain Caoada Nerherlands Belgium Denmark Sweden Ausrria Fiolaod Auslrolia Portugnl Switzerland Ireland Total -2.3.t~ 0.59 1.01 0.79 -3.28 0.78 ·0.39 1,03 0.74 -0.19 -0.02 0,54 0.80 1.72 0.53 3,63 l.01 '' Rclums less 1h11n one year arc not onnunlized. **Derived from MSCl EAFF. data "**Greece joined the WGBI :rs of .lnlv '.!000. s Local 0.74<;< 0.41 0.83 0.62 1.92 0.60 J.66 o,as ().56 -0.17 1.49 0.36 0.62 2.84 0.35 1.35 0.83 As of June 30, 2000 Currency•• Japan 35.4% -3.06'il: 0.17 0.17 0.17 -5.11 0.17 -2.02 0.17 0.17 ·0.02 -1.49 0.17 0.17 -!.09 0.17 2.25 0.17 CAllAN AS...'-OCJ A'J 'E.S. . ... I \l'IT\I, \l.\llld.'I' l ) Real Estate Corner -REITs Rule! Callan Database Group Returns Second Quarter 2000 RETTs pulled out of their two-year slump with a 10.53% return in the sec- ond quai1er, based on the NARElT Equity Composite Index. For the year to date, the index has gained 13.18%. Increased volatility of the broader equity market and strong investor sentimem assisted in driving the REIT market up. Inflows to REIT mutual funds totaled .$389 million for the quar- ter, which was the highest volume since the first quarter of 1998. Of the four major property sectors, Office and Industrial led this rally year-to-date with 16.57% and 15.30%, respectively. IO':--------------------~ -.- The public REIT market significantly outperformed the private real estate market, which gained only l.91%, according to Callan's preliminary esti- mates of private equity real estate. ~'+-----------'------------' H)th f\:f<'CtltHl!- 2Sth Priccnlile M<dl"'1 7~th P~rc~ntitc 901h Pccccn1ill! 4.01 2,)4 1.91 1.41 0.92 RE:ITD•••l>:he IJ.61 1).12 11.J) 11.15 9 32 t-.'1\RE[f &111;<>' 10.53 NAREIT Equity Sector Performance Second Quarte r 2000 Office continued its push mostly in part due to low vacancy rates and eco- nomic growth, whereas Industrial was driven by private market demand for product. RE!Ts have taken advantage of this demand by selling larger in- dustrial portfolios. An example is Pacific Gulf Properties' announced sale to CalWcst Industrial Properties, a joint venture between CalPERS and RREEF, for approximately $929 million at an average capitalization rate of 8.75%. Apartment REITs (+14.75%) enjoyed a strong quarter due to sup- ply/demand equilibrium and strong current income. Both REITs and pri- vate accounts have taken advantage of increased apartment demand by buying property, especially in urban areas across the U.S. 01\'\'t~ith:d ••••••••iS.:::===========:Jt'-.11 . According to the latest Korpac;; Real Estate lllvestor Sww:y, investors are focusing on quality properties. Interest rate hikes challenging the real estate market and the underlying economy arc direct reasons for the increasing demand for quality. The market has become more conservative, with inves- tors more interested in diversifying portfolios across property types and geographic regions. The table below illustrates minimal movement in average capitalization rates (i.e., net operating income/pw·chase price, for unleveraged u·ansactions) be- tween the 2"" quarter 2000 and one year ago. Cap rate increases occurred in the Off lee and Retail sectors, while slight decreases are p1esen1 in Industrial and Multifamily. These changes reflect investor sentiment that Apaitment and Industrial sectors offer more downside protection against unforeseen economic downturns. Overall Capitalization Rates Sector 2nd Quarter 2000 One Year Ago Industrial 9.13 9.15 Apartment 8.82 8.86 CED Office 8.89 8.79 Suburban Office 9.18 9.15 Strip Shopping Center 9.84 9.76 Source: Kurpuc:. R1.rol E:JIUlt' /fH'L'SIOr Suntt•:; Rl5id.:t11i1I •••••••E=::::::=======]t?.771 ;. l.cd1ln11Rc«>m •••••••r::========i11,.,,, lnd\i~att.\liON'i\'.~ ······~=========:J11,:;u1 HrlhhClJ~ ••••5:::=====] 7.6~" lk1:iil ••••=:::::=====] ·u~ L '~ S.1:'.; 4.flSt . ., 6'< )(G IO'Y "~l!Jro Rolling One-Year Returns ~,, 5()•;. ? 4ni: i; ~ "" E· ~ w·.;_ REAL ESTATE Database Median and Index Returns* for Periods ended June 30, 2000 Last Last Last Last 3 Last S Last 10 Quarter 1/2Year Year Years Years Years .:I Rc•al £state Database! (net c>f fee$) J .91 3.55 10.76 1238 10.06 6.54 NCREIF Total Index** 2.3l 532 J 1.10 13.82 11.88 5.82 REIT Database 11.73 15.52 6.72 3.79 13.73 13.08 NAREIT Equity 10.53 l 3.18 3.03 0.44 9.58 10.95 " Returns k ss thrui one yc:ir :tr\' nor :inm1llizcd. *" L:Jtcst qu:1rtcrly rel urns nol av~ibbk; returns sh1\1\ln arc f\Jr p~riolls ended Mo.rch 31, 2000. • "'11 11'1'1 ·-·· . I \l'J'l'\L ll \llld'T CAilAN .ASSOCI1\' l E .• c.:; • I .. , ·'' Alternative Thoughts -Introducing FOFs Fund Raising The second quarter fund-raising showed no sign of slowing down in new commitments. The second quaner yielded $53.6 billion in new private eq- uity commitments, a 235% increase over the $16.0 billion raised in first quaner of 2000. Buyouts reversed the recent !Tend of venture capital domi- nating dollars raised, nearly quadrupling from $7 .1 billion in the first quar- ter to $27. I billion raised in the second quarter. Venture capital more than doubled commitments, rising from $7.2 billion to $17.9 billion. Fund-of- funds enjoyed the most dramatic percentage increase over the same period, exploding from $476 million to $5.2 billion, or 1092%. Why Private Equity FOF? Callan Associates advocates the use of commingled fund-of-funds (FOF) vehicles for plan sponsors investing in the private equity asset class with net asset value targets of less than $100 million. Through fund-of-funds, the return and diversification benefits of private equity are available to smaller plan sponsors. Based on Cal Ian's experience, FOFs ate underutilized by smaller plans. The primary driver for such plans to invest in private equity via an FOP is to achieve a prudent level of diversification. A core institutional FOP will include all the major corporate finance strategies, usually investing in about 15 to 30 partnership investments. Another key private equity FOF benefit is professional management and admiaistration. Because FOF managers are dedicated full-time to J?Ortfolio development and management, they are aware of all institutional quality opportunities in the market, conduct prudent expert due diligence, are ex- Funds Closed January I through June 30, 2000 Strategy #ofFunds $Amt (mil) % Venture Cnpiml 94 25, L64 36.1 Acqui,5iri011/BuyouL 51 34,2 l6 49.l Subordin:ned Debt 7 3,031 4.4 Restructuring 1 600 0.19 Other 4 974 1.4 Fund-Of-Funds 16 5,675 8.1 Totals J74 69,660 JOO.O Sauret: Tlrt Prfrutc E1111/1y 1\n11/)•SI 011J 8 11yu1t1l perts in negotiating limited partnership agreements, and proactively moni- tor the investments. Also, FOF managers have state-of-the-art tracking and reporting systems for monitoring partnerships at the company level, captur- ing cash flows and valuations, and calculating returns. Other benefits of FOF programs to smaller plans include access to the best partnerships, delegation of direct fiduciary oversight, economies of scale and negotiating power, continuity andaccountabiLity, and cash-to-cash ser- vice. Many plan sponsors agree that any potential trade-offs, such as greater distance from the individual partnerships or additional management fees, are more than offset by the value provided. ALTERNATIVE INVESTMENTS Style Median and Index Returns* for Periods ended June 30, 2000 Last Last Last Lastl Lasts Last 10 Quarter Ill Year Year Years Years Years Convertibles Database -0.60 6.03 25.61 18.03 18.58 15.71 CSFB Convenible Securities -4.13 2.09 30.02 18.29 17.14 14.94 I 1 I I fl Market Neutral Equity Style 2.05 1.09 3.02 5.94 7.58 8.63 90-Day T-Bills 1.51 2.93 5.53 5.25 5.28 5.00 lh ,, VE Post Venture Cap Index -14.59 -7.85 40.34 39.24 29.38 23.67 GS Commodity Index 18.04 32.92 59.63 10.03 14.30 8.96 MLM Managed Futures lnde"' 4.61 4.21 6.72 8.38 8.92 8.24 • Returns less than one year nre not annualized. /0 ..... .. , ... ~ ........ 1 ,u•tirAL M uua~r --·- l Captain Greenspan Aims for His 2nd Soft Landing A soft landing is the Holy Grail of central bankers -an economy unwinds from a period of rapid growth through a gradual slowdown, before inflation manages to take off and without causing undue harm to participants. Prior to 1997, the terms. "soft landing" and Holy Grail were used in the same sentence largely bec.ause each had been spotted with similar frequency in the past, i.e., almost never. As signs of a slowing U.S. economy became evident in the second quarter of 2000, Alan Greenspan looks to become the first Fed Chairman to successfully pilot the economy t-0 not only one but rwo oonsecutive soft landings. As expected, observers have switched from worrying about excessive growth to recession, wringing hands over higher inflation, debt burdens, the trade deficit, and the impact of a stock market correction. The economy is in no more danger than it was six months ago when these same worrying factors were still in place. Is the economy really slowing? Last year in June, the Federal Reserve be- gan to raise interesc rates, with the understanding that such moves typically take one year to show up in the economy. Sure enough, several key indica- tors are showing that the economic boom is beginning to ease one year later. The employment data show slowing job gains and an increase in ini- tial unemployment claims, even after accounting for the muddying effects caused by temporary Census hiring. Consumer spending, which has been driving the expansion, is moderating. Auto sales have slowed in response to both higher interest rates and higher gas prices, and housing starts have finally slowed, dropping to their lowest level in two years. Growth in manu- facturing activity remains healthy but has slowed from the brisk pace seen late in 1999 and the first quarter of this year. However, overaJI GDP growth has remained surprisingly strong in the first half of 2000, recording gains of 4.8% fn the first quarter. and 5.2% in the second. Inflation remains the biggest threat to Mr. Green span's second soft landing. The June CPI was up 3.7% from a year earlier, compared to a rise of just 2.0% reported in June 1999, but gains in energy prices accounted for a sizeable portion. Employment costs are rising and remain the biggest con- cern for the Fed, but productivity gains have kept these costs from rising as quickly as anticipated. The tone of Mr, Greeospan's recent semiam1ual ad- dress to Congress acknowledged that a slowdown was under way but did no! say whether the Fed was finished raising interest rates. The Fed has yet to declare victory over incipient inflation and remains openly wary of the valuations in the U.S. stock market. Inflation -Year over Year )6 .. ....----------------------~ PP! (All Commodities) -CPI (All Urban Consumers) -1lJ !---~-------··"'·-·-· ·S'i< .._ _____ _,_ __ .._,,_,_. __ --.-__ ,_ ___ _,_ _ ___, 7S 7& n 1& 79 10 l l 32 U 84 RS 86 37 Jill 89 '!O 91 91 9l 94 95 96 91 9! 99 00 Most observers including the Fed have become convinced that the economy's speed limit-the rate at which it can grow without stimulating inflation and serious imbalance -has risen to 3.5%-4% from a previous consensus of 2%-2.5%. Productivity growth stemming from technological change has been the key. Although the U.S. is becoming an increasingly service-based economy, many of the information innovations of the past ten yean; are applicable to the service sector. As a result, productivity gains have increased despite manufacturing's shrinking share of economic activity. Consumers remain confident, as the plentiful supply of jobs and growing real wages seem to have offset any potential panic stemming from the cor- rec!lon in the NASDAQ market. The consumer confidence index has waned slightly since the tech stock decline, but remains near historic highs. The wealth effect on spending is diminishing as the stock market calms, but the ratio of household wealth to income is still at record levels. Higher gasoline prices around the country are dampening consumption, since money spent on gas is money not spent at the mall. The biggest risks to the economy are the stock market and excessive growth. If the current slowing trend does not hold and inflation heats up, the Fed will need to step in yet again, risking a recession by sharply raising interest rates. A shorter-term risk is a collapse oftlie U.S. stock market, triggering a loss of consumer confidence. Thus far, consumers have ignored the tech stock correction. With inflation still low, the Fed still has the room to ma- neuver in order to respond. U.S. ECONOMY Recent Quarterly Indicato rs 3Q98 4Q98 IQ99 2Q99 JQ99 4Q99 IQOO 2QOO I •I CPI -All Urban Consumors (year over year) 1.5% 1.6% 1.7% 2.0% 2.6% 2.7% 3.7% 3.7% PPl -Finished Goods (year over year) -2.9% -3.2% -1.7% 0.3% 3.4% 4.1% 6.8% 6.5% Employment Cost -Total Compensation Growth 4.4% 2.6% l.7% 4.3% 3.7% 4.0% 5.9% 5.3% Manufacturing Output -Productivity Growth 3.3% 4.0% 2.5% 0.7% 4.7% 6.9% 2.4% 3.1% GDP Growth 3.7% 6.0% 4.3% 1.9% 5.7% 8.3% 4.8% 5.2%* Manufacturing Capacity Utilization (level%) 80.2 80.l 79.S 79.S 79.7 80.l 81.7 82.1 Consumer Confidence Index (1966=1.000) 1.035 1.002 1.059 I.062 l.059 1.053 l.lOl 1.088 •Preliminary ~ .... ,,., ..... ,,, .. ,,,,,, f \111l\f. ,ll \Uh ET. ..... CAlLAN A~ OClA'f'ES. 11 } J All Things Considered -Withdrawal Pains? Spoiled with double-digit gains in each of the past five calendar years, most plans are now feeling deprived of their usual pampered returns so far in 2000. With both the domestic and intemational equity markets posting nega- tive returns for the second quarter, most plans ended up in tbered during the quarter based on Callan estimates. This second quarter loss erased a fair amount of the average plan's first quarter gain. Using the median manager returns from the larest quarter and ending asset allocations from the prior quarter, Callan estimates the recent total returns of the institutional investor community. The adjacem graph illustrating the range of returns for public, corporate, and Taft-Hartley pension plans as well as endowments/foundations shows mostly negative returns across the board. The table below compares the returns of the four institutional fund sponsors to several benchmarks over longer periods. Choices in asset allo- cation explain much of the difference in performance .. With the equity markets retreating and the bond markets recovering, those fund sponsors with less aggressive asset mixes (i.e., lower equity alloca- tions) were generally better off in the second quarter. Taft-Hartley plans, supported by their relatively low domestic and international equity expo- sures (46% and 7% on average, respectively), led thjs quarter with a me- dian return of -1.22%. With more equity exposure, the median public plan fell l.36%. Corporate plans (-1.41 %) and endowments/ foundations (-1.38%) suffered the most, given their more aggressive asset allocations (65% and 64% equity allocations, respectively). Cullan's balanced manager groups generally maintain well-diversified port- folios and attempt to add value by underweighting or overweighting asser classes, as well as by stock selection. In the recent quarter, the global bal- anced managers outperformed a static 60% global equity and 40% global fixed-income benchmark, while domestic balanced managers lagged a bit behind a static 60/40 domestic benchmark. 10th Ptic<ntlle 2.51h PGJcl!ntllc Meodi.1.1\ 75th Pcrcentile OOth ~rccntne- so 30 20 10 Callan Database Group Re turns Second Quarter 2000 .!': ,------....,.--------------,------. 11 O•> +------i------+-------'-----t ·l'i ... hr ~---------~----~-----' l'u~ll< Pl:in OaL'ib.;r.~ n.19 ·l.()J ·UC• ·I Gl 1.1!4 Corpor.1ttl Pl:ln Oat•b:uc 0.6(, •l,17 •l.41 ·1.75 2.14 fndO\\/found U:uJb:& ..()_:;7 -1 1(, -UR -160 -2.12 Average Asset Allocation as of March 3 I , 2000 ePubtit- Co1J1Qt:11< • f.ndo\\ ITI(tU:NundJ1lo11 o.lilrHl:lnk)' 'IJ(i.llonlcy l);11.Jb3SI! 0.54 0-04 -1,ll -1.44 -1.56 U.S. Elju11y l\0!1-U 1i. Lt.S. Fi>rd t\on·U,S. R<ill cull< l\h. Uw. Eqt1Hy fjj,•d DIVERSIFIED ACCOUNT DATABASE Database Median and Index Returns* for Periods ended June 30, 2000 Last Last Last Last 3 Last S Last 10 Quarter 1/2Year Year Years Years Years " Public Plan Database -l.36 Corporarc: P/1.111 Databuse -J.41 J:::mlm1•111e111/F01111dutim1 Du/abase -J.38 1iift-lfartfoy Database -1.22 { .. As.rc1 Allocaror Styfct -0.87 Vomeslic Balanced Darabase ·0.93 Gfohaf Balanced DCllabose -l.06 60% S&P 500 + 40% LB Aggregate -0.90 60% MSCI World + 40% SSB World Govt -2.18 * Re tu ms Jess than one year arc not ~nnualized. The Capital Market Review is published qu;uterly for members of the inslitulionnl investmcot community, bOIJ1 tlolllt:Stic and international. The Cr1pital Mark<!t Re- view focuses primarily on th~ Jnrcst quarterly pe1form:ince of market indkes nnd C~llan sryle groups for each of the mn jor asser classes used by institutional inves- tors. Capiwl Marker Re\<lcw conrributors nre us follows: Gary Robertson. Altcm;11ivc Invesrmcnts Joy Klocpfcr. Economy Janet Becker-Wold. Non-U.S. Equity Michncl Fn:cJcricks. Non-U.S. f.ixcd-Incomc Jamie Kus~r/Zilchary Stassi, Real Esmtc J .75 9.45 12.67 138 8.22 11.80 1.82 8.63 13.58 2.03 5.74 11.81 2.22 8.02 15.07 1.74 6.21 12.84 0.95 9.11 1 UN l.34 6.50 14.51 -1.51 8.93 10.95 Jlm McKee, U.S. Equiry. Chief IOditor Bhinca Munro. U.S. Fixed-Income 14.44 15.78 15.43 14.J I 16.18 14.50 13.97 16.84 l l.71 Julia Moriarty. Diversified Actounts, CMR Pcrform:ince Dnw Tanja Eisenhardt, Publication Layout 12.51 13.34 JZ.49 12.10 14.36 13.11 12.54 13.95 10.67 Cnllnn 1\ssocintcs Jnc. is a privately-held and 100 pcrccm employee-owned firm whose sole business is strategic ass.:t manag.:imcm consultin_g as an indcpcnclcnr, objective third party. Ilcadquartered in S;IO F.r:inclsco. C:illan nlso has rcgioml offices in Chicago. Morristown. Atlanta and Denver. © 2000 Callan Associutcs fnc. 11! CAllAN ASSOCIA'.J :ES. , ....... 1'111ITll. \l lllhl:l .. 1 MARKET OVERVIEW ACTIVE MANAGEMENT VS INDEX RETURNS /I Market Overview The cbans below illustrate the range of returns across managers in Callan's Separate Account database over the most recent one quarter and one year time periods. The database is broken down by asset class to illustrate the difference in returns across those asset classes. An appropriate index is also shown for each asset class for comparison purposes. As an example, the first bar in the upper chart illustrates the range of returns for domestic equity managers over the last quarter. The triangle represents the S&P 500 return. The number next to the triangle represents the ranking of the S&P 500 in the domestic equjty manager database. - - Range of Separate Account Manager Returns by Asset C lass One Quarter Ended June 30, 2000 (35)f • (26)~ (88) - -(50) - - - - I Olh Percentile 25th Percen1He Median 75th Percen1ile 90th Percenlile Index. • ,_ ,, - DomcSt1c E'luity vs S&P 500 2.48 (().l:?l ', "'~I (-1 ,,) \7tUI .!.f:(tl I 142) ... :1 Non-US Equity VS MSCIEAFE 2.62 15 !1\ J '''l I • II> l!I "'-" I ' •(1) (79) -Domestic Non-US Re11J Fixed-Income Fixed-Income Estate VS VS \IS LB Aggr Bd SB Non-US Gov NCREIF Int.lex 1.95 1.79 l.66 1.45 1.05 1.74 0.37 ,, 11 11 0 ,.1 , ( 1 l~lj (11 ,,,, 4.01 2.34 1.91 1.41 0.92 2.31 Cash Equivalents VS 3 Mon T-Bills 1.77 1.64 1.61 1.57 1.48 1.51 Range of Separate Account Manager Returns by Asset Class One Year Ended June 30, 2000 70% 60% - 50% - 40% - "' e 30% ;::l (i) 20% ~ - 10% -(61) • 0% 'Ill• ) i 20'\ l I 0th Percentile 251h Percentile Median 75Lh Percentile 90lh Percentile Index • Orange County Sanitation Disl.rfot Domestic Equity VS S&PSOO 57.83 25.64 10.88 0.28 (I) (1)) 7.24 (7~~ Non-US Equity vs MSClEAFE 41.02 33.41 24.15 16.42 12.23 17,15 (50) Oomi:slk Fixed-Income \IS LB Aggr Bd 5.48 5.05 4.57 4.13 3.34 4.57 () [) Nun-US Fixed-Income vs SB Non-US Gov 2.77 1.36 0.41 11).;t)\ 1~..l\ll 2.42 (49)19 Real Estate VS NCREIF Index 15.56 13.52 10.76 7.01 2.27 10.78 (82) C11sh Equivalents VS 3 Mon T-Rills 6.14 5.97 5.83 5.58 5.38 5.53 1 l J J } J j DOMESTIC FIXED-INCOME Active Management Overview Active Managers vs the Index The second quarter marked a turnaround for the bond market with all style groups and indices in positive territory. The median Mortgage Backed manager posted the highest return, 2.21 %, for the quarter and was surpassed only by the Cash and Defensive style groups for the year. All other style group returns were relatively close to the Lehman Aggregate for the quarter which posted a return of 1.74%. The Lehman Govt/Corp had a second quarter return of l.45%, which fell below all the style group medians excluding Extended Maturity, 0.83%, and High Yield, l.38%. Short Duration vs Long Shorter Duration managers outperfonned their long duration peers, with the median Defensive fund bettering the median Extended Maturity fund by 91 basis points for the quarter. The same trend holds true for the year, with the median Extended Maturity fund lagging the median Defensive fund by 52 basis points. The Active Cash style had the best performance for the year with a median return of 5.82% while High Yield funds only managed a return of 1.33%. Mortgages and High Yield Mortgage Backed funds bad a great quarter while High Yield funds ranked only ahead of the Extended Maturity style group. For the quarter and year, the mortgage influenced Lehman Aggregate outperformed the Lehman Govt/Corp Index. For the year, Defensive Style funds and Active Cash funds were the only groups to outperform the Mortgage Backed class. As for Hi gh Yield, the median manager returned 1.33% for the year, falling behind all other fixed-income style groups while outperforming the Merrill Lynch High Yield Index by 2.70%. Separate Account Style Group Median Returns Lehman Aggregate: 1 74% for Quarter Ended June 30, 2000 3.0% ~------------------------;__L_ch_m_an_G_o_vlf_C_o_rp_. __ 1_.4_s0_~_, 2.5% ~ --------------------------------------------------------------iii% _________ - 1.0% ------- o.s~ ------ 0.0%--- Active Cash Defensive lntermed Core Bond Core Plus Extended Maturity Separate Account Style Group Median Returns Ac.:tive Duration Mortgage Backeil High Yield for One Year Ended June 30, 2000 Lehman AggrcgaJc: 4.57% 7% Lehman Govl/Corp: 4.31 % I 6% i-------i82'J. __ -------------------------------------------------------------- 5% ~------5.21% 5.16% 4% 3% ._ _____ _ 2% ,..----- 1% 1------- ()% .__ __ Active Cash Orange County Sani1acion District Defensive lntermed Core Bond Core Plus Extended Maturity Accivc Duration Mortgage Backed 1 l l 1 J J ) ) j ) J Asset Class Risk and Return The charts below show the four and three-quarter year annualized risk and return for each asset class component of the Total Fund. The first graph contrasts these valu es with those of the appropriate index for each asset class. The second chart contrasts them with the risk and return of the median portfolio in each of the CAI Total Asset Class Databases. In each case, the crosshairs on the chart represent the return and risk of the Total Fund. (j) E :::i Q5 i:i.:: "' E ~ ~ i:i.:: 6.4% 6.2% 6.0% 5.8% 5.6% 5.4% 5.2% Four And Three-Quarter Year Annualized Risk vs Return Asset Classes vs Benchmark Indices I Merrill Lynch l-3yr Govt/Corp f--e Lehman Brothers 1-5 r Govt/Co 5.0% +---.--......... ---------.--..---..---....---.--"'-...--....-- 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% 2.2% 2.4% 6.4% 6.2% 6.0% - 5.S'lo 5.6% 5.4% 5.2% 5.0% 4.8% Standard Deviation Four And Three-Quarter Year Annualized Risk vs Return Asset Classes vs Asset Class Median / I Total Dome.~tfc Fixed-Income I I Dcfcnswe Fixed-Income Style f--e -----1 Monel Market Median I 0.0% 0.2'/o 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% 2.2% Standard Deviation Orange County Sanitation District l l Investment Manager Asset Allocation The table below contrasts the distribution of assets across the Fund's investment managers as of June 30, 2000, with the distribution as of March 31, 2000. Asset Distribution Across Investment Managers Domestic Fixed Income Long Term Operating Fund Liquid Operating Monies Total Fund Orange County Sanitation District June 30, 2000 Market Value Percent $391,049,193 100.0% 357,736,258 91.5% 33.312.934 8.5% $391,049,193 100.0% March 31, 2000 Market Value Percent $371,295,372 100.0% 351,406,822 94.6% 19,888.550 5.4% $371,295,372 100.0% I ) J J Investment Manager Returns The table below details the rates of return for the plan's investment managers over various time periods ended June 30, 2000. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annua)ized. The first set of returns for each asset class represents the composite returns for all the fund's accounts for that asset class. Returns for Periods Ended June 30, 2000 Last Last Last Last Last 2 3 4-3/4 Quarter Year Years Years Years Domestic Fixed Income 1.77% 5.34% 5.22% 6.06% 6.12% Long Term Operating Fund 1.80% 5.32% 5.2 1% 6.09% 6.16% Liquid Operating Monies l.60% 5.87% 5.54% 5.58% 5.58% Liquid Operating Monies (1) 1.56% 5.71% 5.39% 5.42% 5.42% Market Indicators LB l -5yr Govt/Corp 1.7 1 % 4.55% 4.95% 5.46% 5.68% ML 1-3yr Govt/Corp 1.68% 4.92% 5.05% 5.65% 5.80% ML 1-5yr Govt/Corp 1.69% 4.56% 4.77% 5.68% 5.8 1% ML l -5yr G/C excl. BBBs 1.75% 4.63% 4.77% 5.67% 5.80% Treasury Bills 1.51 % 5.53% 5.21% 5.25% 5.26% Total Fund 1.77% 5.34% 5.22% 6.06% 6.12% (1) Net of Fees. Orange County Sanitation District l j J J .J IJJ E .2 PIMCO-LIQUID OPERATING MONEY Bii PERIOD ENDED JUNE 30, 2000 /I Investment Philosophy The Money Market Funds Database consists of actively managed short term funds. These funds invest in low-risk, highly liquid, short-term financial instruments. Quarterly Summary and Highlights • PIMCO-Liquid Operating Money's portfolio posted a 1.60% return for the quarter placing it in the I percentile of the Money Market Database group for the quarter and in the I percentile for the last year. • PTMCO-Liquid Operating Money's portfolio outperformed the T-Bls by 0.09% for the quarter and outperformed the T-Bls for the year by 0.34%. Quarterly Asset Growth Beginning Market Value $19,888,550 Net New Investment $12,999,974 Investment Gains/(Losses) $424,411 Ending Market Value $33,312,934 Performance vs Money Market Database 7% 6% 5% 4% . 3% 2% 1% 0% I 0th Percentile 25th Percentile Median 75th Percentile 90th Percenlil.e l'IMC0-1.Jquid OpcrnLing Money • /\ Nc1 of Fees • 0 T-Bls * (9)1• • Ml~ l B(l Last Quarter 1.51 1.47 1.41 1.35 1.27 1.60 1.56 1.51 I (16) 13(6) ~A(ll Last Year 5.64 5 45 5.23 4.96 4.68 5.87 5.71 5.53 Relative Return vs T-Bls 0.25% --...----........ ----.----........ ---...--. 0.20% _,__,~---t-----t 1 I (21 ) fl(ll) I ~/\(I) I A(l~ (23)13D('J (22) 8(9) ~/\ti ) Last 2 Years Last 3 Years Last 4-3/4 Years 5.35 5.40 5.38 5.18 5.24 5.24 4.96 5.02 5.03 4.7 1 4.80 4.82 4.48 4.57 4.62 5.54 5.58 5.58 5.39 5.42 S.42 5.21 s 25 5.26 Money Market Database Annualized Four And Three-Quarter Year Risk vs Return 6.0 PIMC0-1,i Uld 0 5.5% 5.0% "' E :;, 4.5% ~ 0.10% ll) .::: 0.05% ~ Q) i:i:: 0.00% 10 l(i'', .,.., -., __________________ ...., 95 1996 1997 1998 1999 2000 I • P!MCO-Liquid Operating Money l Orange Counly Sanitation DisU-ict ~ i:i:: 4.0% 3.5% 3.0% ---.....----.......... ----.---.--......... -.....--.-----1 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 Standard Deviation 1 1 l l I 1 J J J PIMCO-LONG TERM OPERATING FUND PERIOD ENDED JUNE 30, 2000 /j Investment Philosophy Defensive Style managers aim to minimize interest rate risk by investing predominantly in short to intermediate tenn securities. The average portfolio maturity is typically two to fi ve years. Quarterly Summary and Highlights • PIMCO-Long Term Operating Fund's portfolio posted a 1.80% return for the quarter placing it in the 20 percentile of the Defensive Fixed-Income Style group for the quarter and in the 40 percentile for the last year. • PIMCO-Long Term Operating Fund's portfolio outperformed the ML15 G/C by 0.11 % for the quarter and outperformed the MLl5 G/C for the year by 0.76%. Quarterly Asset Growth Beginning Market Value $351,406,822 Net New Investment $-30 Investment Gains/(Losses) $6,329,466 Ending Market Value $357,736,258 Performance vs Defensive Fixed-Income Style 6% 5% 4% 2% 1% 0% IOlh Percentile 25lh Percentile Median 75lh Percentile 90th Percentile PIMC0-1..ong Term ~~!:l•ti.: :}~.~(2h (67)j.._Ff __ -.. ! u , ... Llist Qu11rter 1.82 1.79 l.74 1.65 j 45 e /\ 1.80 J ~/\(61 I :110\1(6'.!60 (54)~ 13(56 (63)~·~~-~-r====-l /\(~U ~A<~7 (92)~B(IJ'.!i (91)~1Wl l Last Year Last 2 Years Last 3 V ca rs Last 4-3/4 Years 5.46 5.48 6.02 6.20 5.40 5.33 5.89 6.14 5.21 5.13 5.72 5.90 4.90 5.00 5.60 5.76 4.74 4.87 5.48 5.61 5.32 5.21 6.09 6.16 Opcmlng Fund ML G/C 1-5 cxcl. BIHi~ •13 1.75 4.63 4.77 5.67 5.80 MLI5G/C • I.69 4.56 4 77 5.68 5.81 Defensive Fixed-lncome Style Annualized Four And Three-Quarter Year Risk vs Return Relative Return vs ML15 G/C 6.6% ----------.---------- 0.4% 6.4% PIMCO-Lon ~ 3 ~ l:G ~ > ·c «l 6.2% c c u Cl) 6.0% E 2 ~ 5.8% l:G 0 ti v l:G 5.6% n D tO ~· I 1-1-------+----~----+--5.4% 5.2% ---------------.-........ .....,..--~-0.4 0.6 0.8 1.0 1.2 1.4 l.6 1.8 2.0 2.2 2.4 2.6 2.8 Ill V i ·!--'-----+---_._----+----;--~ 95 1996 1997 1998 1999 2000 J • PIMCO-Long Term Operating Fund I Standard Deviation Orange County Sanitation District 1 l l J J J J LONG TERM OPERA TING FUND PORTFOLIO CHARACTERISTICS SUMMARY JUNE 30, 2000 /I Portfolio Structure Comparison The charts below compare ihe structure of the portfolio to that of tbe index from the three perspectives that have the greatest influence on return . The first chart compares the two portfolios across sectors. The second chart compares the duration distribution with solid lines for total duration, and dashed lines showing the +/-I Std. Dev. range "Dispersion" statistic (degree of "barbellness"). The last chart compares the distribution across quality ratings. 0 Dispersicm .~ ;g ... 0 i:i.. ..... 0 c Q.) u ... Q.) i:i.. Treasuries 9% CM Os 3% Sector Allocation Corporates 27% Treasuries 50% Long Term Operating Fund Lehman Government/Corporate 1-5 0% Duration Distribution Weighted Average: Duration Dispersion • Long Tenn Operating Puod: 2.62 2.36 0 Lehman Government/Corporate 1-5: 2.39 0.93 <1.0 1.0-1 .2 1.2-1.4 1.4-1.6 1.6-1.8 1.8-2.0 2.0-2.2 2.2-2.4 2.4-2.6 2.6-2.8 2.8-3.0 3.0-3.2 3.2-3.4 3.4-3.6 3.6-3.8 3.8+ Years Duration Quality Distribution Weighted Average: 60% .---..----.------,----r-----.----,----; • Long Term Operating Fund: Quality Aal Aal ~..--~----------------0 Lehman Government/Corporate 1-5: 40% 30% 20% 12.4% Trsy Agcy Aaa Aal Aa2 Aa3 Al A3 Baal <Baal Moody's Rating *All Statistics shown on the page are dependent on the securities in the portfolio being recognized (by their Cusip) and priced. In this case 100% of the securities in the portfolio (by market value) were recognized and priced. Orange County Sanitation District } J J LONG TERM OPERA TING FUND PORTFOLIO CHARAC1ERISTICS DETAIL JUNE 30, 2000 Weighted Average Portfolio Characteristics Total Fund, By Asset Class and By Sector Ending Percent Market of Effective Effective Sector Total Fund Asset Backed Afincics C Os Corporates Mortgages Mwucipals Troasunc!I Total Fixed-Income Cash Equivalents Issuer Nume F11111aM1n United .Stall:-~ Treas Nts GnmaTba Federal Nau Mtg Assn Medi Federal Home Ln Mtg Corp Value* $381,765,275 $6,559,086 $84, 124,675 $12.033,797 $102.875.624 $55.252.637 $3,353,754 $33.572.347 $297,771,920 $83,993,356 L"'lueNurne 6.500 "/1212009 Portfolio Coueon Maturity 100.0% 6.29 S.96 1.7% 6.79 16.94 22.0% 6.27 5.21 3.2% 6.97 6.86 26.9% 6.77 3.10 14.5% 6.60 18.52 0.9% 4.88 28.71 8.8% 3.47 5.47 78.0% 6.21 7.57 22.0% 6.58 0.25 5 Largest Holdings Sector Ending Market \lulue Percent of Portfolio Nt 3.375% 1/15/2007 Mpt 6.5% 30yr Tba Preassign 00788 6,000(,f 07 /2.0/.?0<ll Dd 0 l\gcncic.~ 'l'rc:isunc~ Mortg;iies /\g,cnc1cs l\gend1:-~ $40.228.0 17 $24.222.310 $20.404.790 $lS.210.000 !f,12.719.791 10.5% 6.3% 5.3% 4.0% 3.3% 5 Lowest Rated Holdings (Moody's Rating) li;:.'Uer Nllnle Issue Name LMg l~larul Ltg, Cl) Deb 8.20% 3fl5/2023 Cnuntrywitlc lfomc Loan-Glob6.850 6115104 Hol lcr Finl 1111: Tr 246 Fltg Rt 4f.!8/2003 Scars Roebuck Accep Tr #00 Mtn 6.54111 212012003 Lehman BrolhcrsHldgs Inc Fllg Rt 12112/2002 Dd Sector Corporates Corporates Corporates Corporates Corporates Ending Market \l:llue Si.9119.189 ~2.413.236 $3.0IS.300 $1,968.482 $5.022.934 Percent of Portfolio 0.5<;!- 0.6% 0.8% 0.5% J.3% 5 Longest Duration Holdings Issuer Nume Issue Numc NJ Hllh-Rf-R...,'\t 4.000 7/1/28 MontgumCI}' Spl C 5.000 11/15129 f'CdcriJJ Home l.n Mlg Corp M Ser 1620 Cl 1620-Zfs G United Stales T reas NI~ Dtd 00862 Long Island Ltg Co Deb 8.20% 3/15/2023 S1:ctor Municipals Mwuciprus CM Os Treasuries Corporates Ending Percent Market of Vuluc $1.676.668 Sl .736.058 $2.010.091 Sl,052.136 $1,949,189 Porlfolio 0A% 0.5% 0.5% 0.3% 0.5% 5 Holdings with Highest Effect Yield ls.~uer Name Issue Name Morgan Stunluy Donn Witter Tranche It Tr 003 I 1 Va Federal Home Ln Mtg Corp M Ser 1620 Cl 1620-Zfs G Long Island l.1g Co Deb 8.20% 3/15/202'.3 Countrywide Home Loan·Glob6.850 6/151()4 Gnma 1'ba Mlll g,O'il. 30yr Tba Sector Cn(1)0nttcs C.:MOs Corporates Corporates Mortgages Ending Market Vuluc Sl,718.853 $2.010.091 $1.949,189 S2A13.236 !S2.021260 *Market Value shown does not include payables and receivables. Percent of Porttolio 0.5% 0.5% 0.5% 0.6% 0.5% Yield 6.80 7.l 1 7.03 7.25 7.34 7 39 5.98 4.07 6.87 6.58 Effective Vield 7.08 4.10 7.38 6.72 7.29 Effective Yidd 8,06 7.95 7.10 7.71 7.42 Effective Yield 5.94 6.01 8.11 4.06 8.06 Effective Yield 8.11 8.11 8.06 7.95 7.89 OA OA Duration Convexit}'. Qwllitv 2.62 10.011 1 1.19 !Oil 3.26 l J, 1()1 3.J6 0.05 2.35 0.01 3.89 rr+.~; 12.91 l.86 4.77 0.00 3.29 !0.11 l 0.25 0.00 OA OA Dunitiun Convexity 4.97 tO' 5.69 0.00 6.40 o.os 0.98 0.01 0.96 (Ii (ll OA OA Durntion Conve.x.itv 7.08 I ., 3.40 0.14 2.46 0.00 2.34 000 2.16 0.00 OA OA Dtm1tion Convtxity 13.07 1.95 12.76 1.77 9.49 I) ll l 7.65 0.01 7.08 1157) OA OA Durlllion CnnYl'Xity L42 0.00 9.49 1() ll 1 7 08 1057 3.40 0.14 4 23 ~ T Aal Aaa Axcy al A2 AX~ Trsr Aa Aa11 Qualitv A$1.1' ·1 rsy /\gcy l\gcy Agcy Ouatitv Baa3 A3 A3 A3 A3 Quality Aaa Aaa Agcy Trsy Baa3 Quality J\a3 Agey Baa3 A3 Agcy * All Statistics shown on the page are dependent on the securities in the portfolio being recognized (by their Cusip) and priced. In this case l 00% of the securities in the portfolio (by market va.lue) were recognjzed and priced. Orange County Sanitation District