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HomeMy WebLinkAbout2003-11-12MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Orange County Sanitation District Wednesday, November 12, 2003, 5:00 p.m. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on November 12, 2003, 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: Brian Brady, Chair Roy Moore, Vice Chair Alberta Christy Bill Dalton Mike Duvall Joy Neugebauer James W. Silva Shirley McCracken, Board Chair Directors Absent: Steve Anderson, Vice Board Chair (2) APPOINTMENT OF CHAIR PRO TEM STAFF PRESENT: Blake Anderson, General Manager Gary Streed, Director of Finance/Treasurer Carol Beekman, Communications SeNices Manager Mike White, Controller Lisa Arosteguy Jan Collins Penny Kyle, Committee Secretary OTHERS PRESENT: Thomas L. Woodruff, General Counsel Steve Filarsky, Special Labor Counsel Mike Moreland Nipa Shah Toby Weissert Ryal Wheeler Vice Chair Roy Moore opened and conducted the meeting until Chair Brady arrived. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR FILED IN THE OFFICE: OF THE SEC RETAR'i ORANGE rr• ,,,-., ,-. , .,,.,.. ~v,M l)ISTRICT NOV 19 2003 -< Vice Chair Roy Moore reported that Lisa Tomko, Director of Human Re"source .-wasat ending a conference that week and would not be able to attend the FAHR Committee meeting. Mi'nutes of the Finance, Administration and Human Resources Committee Meeting Page 2 November 12, 2003 (5) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson announced that the third Orange County Leadership Symposium would be held January 9-11, 2004, in Lake Arrowhead. Registration materials would be provided at the November 19th Board meeting and he encouraged all Directors to attend. (6) REPORT OF DIRECTOR OF FINANCE/TREASURER Gary Streed, Director of Finance/Treasurer, reported that the report on how to calculate connection fees was expected to be finalized for the December 10th committee meeting. (7) REPORT OF DIRECTOR OF HUMAN RESOURCES The Director of Human Resources was not present. (8) REPORT OF COMMUNICATIONS SERVICES MANAGER The Communications Services Manager had no report. (9) REPORT OF GENERAL COUNSEL General Counsel had no report. (10) CONSENT CALENDAR ITEMS a. The Chair ordered that the October 8, 2003 minutes for the Finance, Administration and Human Resources Committee meeting be deemed approved, as mailed. b. FAHR03-87 Recommend to the Board of Directors to receive and file Treasurer's Report for the month of October 2003. c. FAHR03-88 Receive and file Certificate of Participation (COP) Monthly Report. d. FAHR03-89 Receive and file Employment Status Report as of October 28, 2003. e. FAHR03-90 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. f. FAHR03-91 Recommend to the Board of Directors to receive and file the Quarterly Investment Management Program Report for the period July 1, 2003 through September 30, 2003. Mi'nutes of the Finance, Administration and Human Resources Committee Meeting Page 3 November 12, 2003 g. FAHR03-92 Recommend to the Board of Directors to receive and file the 2003-04 First Quarter Financial Report for the period ending September 30, 2003. h. FAHR03-93 Recommend to the Board of Directors to approve SAFETY-POL 113 - Exposure Control Plan for Bloodborne Pathogens Program, as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program Policy. i. FAHR03-94 Recommend to the Board of Directors to adopt Resolution MOTION: No. OCSD 03-_, Authorizing the Director of Human Resources to Appoint or Employ Agents or Advisors to Implement and Administer District's Deferred Compensation Plan Loan Program. It was moved, seconded and duly carried to approve the recommended actions for items specified as 1 0(a) through (i) under Consent Calendar. END OF CONSENT CALENDAR (11) ACTION ITEMS a. FAHR03-95 Recommend to the Board of Directors to adopt Resolution No. OCSD 03- MOTION: _, Amending Resolution No. OCSD 98-33, Amending Human Resources and Policies Procedures Manual, providing for: 1. Create the Automotive/Heavy Equipment Assistant classification at pay range 53 ($16.772 -$20.965); and, 2. Delete the Lead Collection Facilities Worker classification at pay range 66 ($23.123 -$28.904) Jan Collins, Senior Human Resources Analyst, gave a brief report outlining the need for adjustments to the classification structure, which creates one new classification and deletes one classification. It was moved, seconded and duly carried to recommend approval to the Board of Directors. b. FAHR03-96 Recommend to the Board of Directors to approve the reclassifications of MOTION: eight District employees, the upgrading of one vacant position and an equity adjustment for one employee. Jan Collins, Human Resources Analyst, gave a brief report on the recommended reclassifications. 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 November 12, 2003 c. FAHR03-97 Recommend to the Board of Directors to receive, file and approve the MOTION: District's Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2003, prepared by staff and audited by Moreland and Associates, Certified Public Accountants. Mike White, Controller, provided a brief review on the issued CAFR. It was moved, seconded and duly carried to recommend approval to the Board of Directors. d. FAHR03-98 Recommend to the Board of Directors to authorize staff to invest the Debt MOTION: Service Reserve Fund for the 2003 Certificates of Participation through a competitive selection process to be conducted by the District's Financial Advisor, Public Resources Advisory Group, in accordance with the District's Investment Policy. Gary Streed, Director of Finance/Treasurer, reported that the proposed investment of the Debt Service Reserve Fund (DSRF) involves terms from five years to 30 years. He recommended a Forward Delivery Agreement for the investment, to be conducted by Public Resources Advisory Group, the District's Financial Advisor. This investment is expected to take place within the next six months. It was moved, seconded and duly carried to recommend approval to the Board of Directors. e. FAHR03-99 Recommend to the Board of Directors to: 1) Approve two additional MOTION: vanpool routes for the Rideshare Program utilizing existing vans; and, 2) Approve implementation of rideshare incentives in an effort to comply with SCAQMD Rule 2202 and meet established A\erage Vehicle Ridership (AVR) targeted goal, at the Board's discretion and subject to change by the Board at any time. It was moved, seconded and duly carried to recommend approval to the Board of Directors. (12) INFORMATIONAL PRESENTATIONS a. FAHR03-100 Collecting Capital Facilities Capacity Charges as an Assessment on the Property Tax Bill Gary Streed, Director of Finance, reported that procedures have been developed for the recent policy approved by the Board of Directors allowing property owners currently on septic tanks who wish to connect to the sewer system to make annual pa~ents for the connection fees over "tvlrnutes of the Finance, Administration and Human Resources Committee Meeting Page 5 November 12, 2003 a five year period, collected on the property tax bill. He noted that approval by the Board of Directors for each parcel will be required in order to collect the payment as a separate line item on the property tax bill. (13) CLOSED SESSION The Committee convened in Closed Session at 5:39 p.m. pursuant to Government Code Section 54957.6 to discuss and consider Agenda Item Nos. 13(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. A report of the actions taken will be publicly reported at the time the approved action becomes final re Agenda Items Nos. 13(a)(1) and (2). RECONVENE IN REGULAR SESSION: At 5:49 p.m., the Committee ieconvened in regular session. (14) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (15) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (16) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled br December 10, 2003 at 5 p.m. (17) ADJOURNMENT The Chair declared the meeting adjourned at 5:49 p.m. Submitted by: Penny M. Kjl'e FAHR Committee Se~tary G:\wp.dta\agenda\FAHR\FAHR2003\1103\111203 FAHR Minutes.doc ROLL CALL FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Meeting Date: November 12; 2003 Time: 5:00 p.m. Adjourn: ____ _ COMMITTEE MEMBERS Brian Brady (Chair) ,/ Roy Moore (Vice Chair) ,/ Alberta Christy ./ Mike Duvall 1./ Bill Dalton ✓ Joy L. Neugebauer 1/ James W. Silva ~ Shirley McCracken (Board Chair) _jL_ Steve Anderson (Board Vice Chair) ~ OTHERS Tom Woodruff, General Counsel STAFF Blake Anderson, General Manager -✓ David Ludwin, Director of Engineering Bob Ooten, Director of O & M Lisa Tomko, Director of Human Resources Ct/ Gary Streed, Director of Finance/Treasurer v Patrick Miles, Director of Information Technology Robert Ghirelli, Director of Technical Services Carol Beekman, Communications Services Mgr v Mike White, Controller 1 / Penny Kyle, Committee Secretary ✓ Jan Collins ,/ Lisa Arosteguy ~ Jim Matte c: Lenora Crane 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 r~ /-?:,, , 20o..3, was duly posted for public inspection in the main lobby of the District's offices on Y~~ .s-, 2oo--3 IN WITNESS WHEREOF, I have hereunto set my hand this ~/v{))/!4i04-I 200--2. Penny M. Ky , Secreta Board of Directors /4?/ ~ dayof Orange County Sanitation District \\RADON\DATA 1 \WP.DTA\ADMIN\BS\FORMS\AGENDA CERTIFICATION-FAHR COMMITTEE.DOC ~ • AIIBhefm 8N!8 &ttns Park c»l!-6 fiaunta-,n Valley Fuifei-ttm Glilrdi,n &ow ~·HUaanincn 8etn;h f,,.Jf1:1e La 'Habra Ls Palma Los Al9111itos -~ioarr;.&acJ'I • Orange Plffcentia SsntaAns Seal Bssch Sl:anttJfl TIIStin ViTJB PBrfc )a-b,e t.lndB Irvine Rat'/Ch •RANGE COUNTY SANITATION DISTRICT November 5, 2003 NOTICE OF MEETING FINANCE, ADMINlSTRATJON AND HUMAN RESOURCES COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, NOVEMBER 12, 2003-5:00 P.M. DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708 WWW .OCSD.COM 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 maintain world-class leadership in wastewater and water resource management FIN•ANCE. ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING DATES FAHR Com•mi'ttee Meeting Date Novemqer 12, 2.003 December 10, 2003 Dark February 11 , 209_4 March 10, 2004 April 1 ~. 2094 May 12, 2004 June 9, 2004 July 14, 2004 Dark September 8, 2004 October 13. 2004 Board . Meeting Oates *November 19, 2003 *December 17, 2003 January 28, 2004 February 25, 2004 March 24, 2004 April 28, 2004 May 26, 2004 June 23, 2004 July 28, 2004 August 25, 2004 September 22, 2004 October 27, 2004 *Meetings being held the third Wednesday of the month. ROLL CALL FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Meeting Date: November 12, 2003 Time: 5:00 p.m. Adjourn: ___ _ COMMITTEE MEMBERS Brian Brady (Chair) Roy Moore (Vice Chair) Alberta Christy Mike Duvall Bill Dalton Joy L. Neuoebauer James W. Silva Shirley McCracken (Board Chair) Steve Anderson (Board Vice Chair) OTHERS Tom Woodruff, General Counsel Steve Filarsky, Special Labor Counsel Don Hughes STAFF Blake Anderson, General Manaqer David Ludwin, Director of Enqineerinq Bob Ooten, Director of O & M Lisa Tomko, Director of Human Resources Garv Streed, Director of Finance/Treasurer Patrick Miles, Director of Information Technoloqy Robert Ghirelli, Director of Technical Services Carol Beekman, Communications Services Mor Mike White, Controller Penny Kyle, Committee Secretary Jan Collins Lisa Arosteguy Jim Matte c: Lenora Crane AGENDA REGULAR MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, NOVEMBER 12, 2003, AT 5:00 P.M. ADMINISTRATIVI: OFFICE 10844 Ellis Avenue Fountain Valley, California 92708 www.ocsd.com Agenda Posting: 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. Items Not P0sted: In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or because there is a need to take immediate action, which need came to the attention of the Committee subsequent to the posting of 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. Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Board Secretary's office at (714) 593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Items Continued: Items may be continued from this meeting without further notice to a Committee meeting held within five (5) days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adjournment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955 (posted within 24 hours). (1) ROLL CALL (2) APPOINTMENT OF CHAIR PRO TEM, IF NECESSARY Book Page 1 November 12, 2003 (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 three 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). (4) REPORT OF COMMITTEE CHAIR (5) REPORT OF GENERAL MANAGER (6) REPORT OF DIRECTOR OF FINANCE (7) REPORT OF DIRECTOR OF HUMAN RESOURCE£ (8) REPORT OF COMMUNICATIONS SERVICES MANAGER (9) ~EPORT OF GENERAL OOUNSEL (10) CONSENT CALENDAR ITEMS. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: lAII matters placed on the consent 'calendar are c:0risidered as not requiring discussion or fu.rth~r explanation and 1 \unless any particular item is requested to be removed from the consent calendar by a Director or staff member, j )there will be no separate discussion of these items. All items on the consent calendar will be enacted by one i )action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All l I items removed from the consent calendar shall be considered in the regular order of business. l : : jTh~ Chair will determine if any items are to be deleted from the consent calendar. ! : : f•n•••• .. •• .. ••-•ou, .. ,.. ................... •••••••.,.•-••--•~•--·••uu' ••• · •••••·•••••• ...... ..,•n-••••• .. ••-••· .. •••nn•ou,, .................. ,,.,...,,,~o.,,_• .. •••·•,· ... •••, .. •••• .. ..,••n"" .. ••·•·.,.·•,._.••••.n••••-•••••••••••-•••••••••n ,. ,,.,. .. , .•••---•np•••ooono,Hoo1I a. Approve minutes of the October 8, 2003 Finance, Administration and Human Resources Committee meeting. b. FAHR03-87 Recommend to the Board of Directors to receive and file Treasurer's Report for the month of October 2003. The Treasurer's Report will be distributed at the FAHR Committee meeting in accordance with the Board-approved Investment Policy, and in conformance to the Government Code requirement to have monthly reports reviewed within 30 days of month end. 2 Book Page 2 November 12, 2003 c. FAHR03-88 Receive and file Certificate of Participation (COP) Monthly Report. d. FAHR03-89 Receive and file Employment Status Report as of October 28, 2003. e. FAHR03-90 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. f. FAHR03-91 Recommend to the Board of Directors to receive and file the Quarterly Investment Management Program Report for the period July 1, 2003 through September 30, 2003. g. FAHR03-92 Recommend to the Board of Directors to receive and file the 2003-04 First Quarter Financial Report for the period ending September 30, 2003. h. FAHR03-93 Recommend to the Board of Directors to approve SAFETY-POL 113 - Exposure Control Plan for Bloodborne Pathogens Program, as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program Policy. i. FAHR03-94 Recommend to the Board of Directors to adopt Resolution No. OCSD 03-_, Authorizing the Director of Human Resources to Appoint or Employ Agents or Advisors to Implement and Administer District's Deferred Compensation Plan Loan Program. ENb OF CONSENT CALENbAR Consideration of items deleted from Consent Calendar, if any. (11) ACTION ITEMS a. FAHR03-95 Recommend to the Board of Directors to adopt Resolution No. OCSD 03- -' Amending Resolution No. OCSD 98-33, Amending Human Resources and Policies Procedures Manual, providing for: 1. Create the Automotive/Heavy Equipment Assistant classification at pay range 53 ($16.772 -$20.965); and, 2. Delete the Lead Collection Facilities Worker classification at pay grade 66 ($23.123 -$28.904) (Jan Collins -5 minutes) b. FAHR03-96 Recommend to the Board of Directors to approve the reclassifications of eight District employees, the upgrading of one vacant position and an equity adjustment for one employee. (Jan Collins -5 minutes) 3 Book Page 3 November 12, 2003 c. FAHR03-97 Recommend to the Board of Directors to receive, file and approve the District's Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2003, prepared by staff and audited by Moreland and Associates, Certified Public Accountants. (Mike White & More Moreland -15 minutes) d. FAHR03-98 Recommend to the Board of Directors to authorize staff to invest the Debt Service Reserve Fund for the 2003 Certificates of Participation through a competitive selection process to be conducted by the District's Financial Advisor, Public Resources Advisory Group, in accordance with the District's Investment Policy. (Gary Streed -15 minutes) e. FAHR03-99 Recommend to the Board of Directors to: 1) Approve two additional vanpool routes for the Rideshare Program utilizing existing vans; and, 2) Approve implementation of rideshare incentives in an effort to comply with SCAQMD Rule 2202 and meet established Average Vehicle Ridership (AVR) targeted goal, at the Board's discretion and subject to change by the Board at any time. (Lisa Arosteguy -5 minutes) (12) INFORMATIO NAL PRESEN1ATIONS a. FAHR03-100 Collecting Capital Facilities Capacity Charges as an Assessment on the Property Tax Bill (Gary Streed -1 O minutes) (13) CLOSED SESSION ! During the course of conducting the business set forth on this agenda as a regular meeting of 'the · \ ! Committee, the Chair may convene the Committee in closed session to consider matters of pending real \ I estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code 1 I Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. ! : Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) [ ) employee actions or negotiations with employee representatives; or which are exempt from public disclosure \ j under the California Public Records Act, may be reviewed by the Committee during a permitted closed ! 1 session and are not available for public inspection. At such time as final actions are taken by the Committee ! 1 on any of these subjects, the minutes will reflect all required disclosures of information. j : : : : ........... ._. .... -... ............. ,-... n••· · --. .... ••••••••i•• .. • .. •·••••• .... •u~H• ............... ..., .............. H .......... -·, .... ,_ .. _,_,.,, .... , . •• ......... •••••·••• .. ·• .. ••,..• .... ••• .. •• .. •u_.o., ......................... ~ ..... ,,.,,..,,.,,,.,,,,uu,uni,,., •·••.•• A. Convene in closed session. 1. Confer with Jan Collins, Principal Human Resources Analyst, and Steve Filarsky, Special Labor Counsel, re Meet and Confer Update re Orange County Employees Association (Government Code Section 54957.6). 4 Book Page 4 November 12, 2003 2. Confer with Jan Collins, Principal Human Resources Analyst, and Steve Filarsky, Special Labor Counsel, re Meet and Confer Update re Supervisor and Professional Management Team Group (Government Code Section 54957.6). B. Reconvene in regular session. C. Consideration of action, if any, on matters considered in closed session. (14) OTHER . .BUSINESS, COMMU NICAT IONS,OR SUPPLEMENTAL AGENDA ITEMS, IF AN Y (15) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (16) FUTu'RE MEETING DATES The next Finance, Administration and Human Resources Committee Meeting is scheduled for December 10, 2003, at 5 p.m. (17) ADJOURNMENT •••• • ,nHu • n H .. ,, -•--•• ,,_, •-• •-•---•-• HHO •-n••-•unH•••---•••n••-•-• --••-• --••-• ,u, • •-• n•• •••--• ---•••n H•~•MHO • oH, • •-• •-,,nHn •-• ••~ • ••~•~ • •-n• ••••-•,, .. n u.•~• ou•••u•• ---• un , •-• HH •n••~••n ••••·•• n n, ••~---•••;.,,.. •-• ""'"'" .: ; j Notice to Committee Members: \ :i i ·! For any questions on the agenda or to place any items on the agenda, Committee members should contact the ! .j Committee Chair or Secretary ten days in advance of the Committee meeting. j foommittee Chair: Brian Brady (949) 453-5300 l (Committee Secretary: Penny Kyle (714) 593-7130 pkyle@ocsd.com l /General Manager Blake Anderson (714) 593-7110 banderson@ocsd.com I !Director of Finance Gary Streed (714) 593-7550 gstreed@ocsd.com l :[Director of Human Resources Lisa Tomko (714) 593-7145 ltomko@ocsd.com I j,GQmrn~n icatl0n. S.eriti.~e~. Ma~a_g;er ... Ga~ol. _Beekmaf.l ................. ·-···· _(7-1_ 4)' 5'93-71_ 2Q ...•.. e~e~ekrnan@oc.sp.,c0m ···-·····--····· _ ····-···j G:\wp.dta\agenda\FAHR\FAHR2003\1103\01.3.FAHR Agenda.doc 5 BookPage5 November 5, 2003 F~HR COMMITTEE AGENDA CALENDAR Month Item Action December Consider Annexation Charge Policy Action December Consider Capital Facilities Capacity Charges Action December Consider Revised Purchasing Resolution Action December Consider 03/04 First Quarter SW AP Report Information December Consider Internal Auditing Firm Action December Consider Budget Assumptions, Calendar and Fiscal Action Policy Statements December Consider General Manager Approved Purchases Action January DARK February Consider Sewer Service User Fees for 2003-04 Information February Consider Quarterly SW AP Report Action Book Page 6 MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Orange County Sanitation District Wednesday, October 8, 2003, 5:00 p.m. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on October 8, 2003, at 5:00 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: (2) FAHR COMMITTEE MEMBERS: Directors Present: Brian Brady, Chair Roy Moore, Vice Chair Bill Dalton Mike Duvall Joy Neugebauer James W. Silva Shirley McCracken, Board Chair Steve Anderson, Vice Board Chair Directors Absent: Alberta Christy APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR The Chair had no report. STAFF PRESENT: Blake Anderson, General Manager Gary Streed, Director of Finance/Treasurer Lisa Tomko, Director of Human Resources Carol Beekman, Communications Services Manager Mike White, Controller Jeff Reed, Human Resources Manager Sonja Wassgren Ingrid Hellebrand Dionne Kardos Lynn Jensen Penny Kyle, Committee Secretary OTHERS PRESENT: Tom Nixon, General Counsel Steve Filarsky, Special Labor Counsel Toby Weissert (5) REPORT OF THE GENERAL MANAGER The General Manager had no report. Book Page 7 Minutes of the Finance, Administration and Human Resources Committee Meeting Page 2 October 8, 2003 (6) REPORT OF DIRECTOR OF FINANCE/TREASURER Gary Streed, Director of Finance/Treasurer, reported that the on-site work has been completed by the audit team with no significant issues. A report would be coming to the FAHR Committee in November. (7) REPORT OF DIRECTOR OF HUMAN RESOURCES The Director of Human Resources had no report. (8) REPORT OF COMMUNICATIONS SERVICES MANAGER The Communications Services Manager had no report. (9) REPORT OF GENERAL COUNSEL General Counsel had no report. (10) CONSENT CALENDAR ITEMS MOVED, SECONDED AND DULY CARRIED: To remove Agenda Item No. 1 0(g) from the Consent Calendar. a. The Chair ordered that the September 10, 2003 minutes for the Finance, Administration and Human Resources Committee meeting be deemed approved, as mailed. b. FAHR03-78 Recommend to the Board of Directors to receive and file Treasurer's Report for the month of September 2003. c. FAHR03-79 Receive and file Certificate of Participation (COP) Monthly Report. d FAHR03-80 Receive and file Employment Status Report as of September 24, 2003. e. FAHR03-81 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. f. FAHR03-82 Recommend to the Board of Directors to approve SAFETY-POL-114 Hazardous Waste Management Program, as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program. MOTION: It was moved, seconded and duly carried to approve the recommended actions for items specified as 1 0(a) through (f) under Consent Calendar. Director Duvall abstained on Item 1 0(a). END OF CONSENT CALENDAR Book Page 8 Minutes of the Finance, Administration and Human Resources Committee Meeting Page 3 October 8, 2003 Consideration of items deleted from Consent Calendar, if any. g. FAHR03-83 Recommend to the Board of Directors to adopt Resolution No. OCSD 03- _, Amending Resolution No. OCSD 98-33, Amending Human Resources Policies and Procedures Manual. Motion: Directors discussed language contained under Policy No. 8150, Section 6.2.1, and requested it be revised to add "or a member of the board of directors". MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to adopt Resolution No. OCSD 03-_, Amending Resolution No. OCSD 98-33, Amending Human Resources Policies and Procedures Manual, to include the revised additional language "or a member of the board of directors" under Section 6.2.1. Director Neugebauer abstained. (11) ACTION ITEMS a. FAHR03-84 Recommend to the Board of Directors to receive and file Communications MOTION: Services Strategic Plan FY 2003-04. Carol Beekman, Communications Services Manager, discussed the Strategic Plan, and introduced members of the Communications Services team: Sonja Wassgren, Ingrid Hellebrand, and Dionne Kardos. They described various components of goals and objectives that would be targeted during the next year. Quarterly updates will be provided to the FAHR Committee. Directors entered into discussion regarding corporate identity and public confusion thinking the Sanitation District is a part of the County of Orange. It was moved, seconded and duly carried to recommend approval to the Board of Directors. b. FAHR03-85 Recommend to the Board of Directors to approve an Agreement with the Santa Ana Watershed Project Authority (SAWPA) to establish the purchase price for, and the purchase of 2.0 mgd Wastewater Treatment and Disposal Capacity Right for Desalter Brine for a total amount of $5,252,015.26, in a form approved by General Counsel. Blake Anderson, General Manager, advised this item had come before the FAHR Committee in September, and was deferred one month . He briefly reviewed the history of SAWPA's capacity agreement, and SAWPA's request to purchase an additional 2.0 mgd of capacity for disposal of low- strength discharge. Directors expressed some concern regarding approval of this agreement prior to the resolution of other pending issues with SAWPA. A meeting had been held earlier that week to resolve the Book Page 9 Minutes of the Finance, Administration and Human Resources Committee Meeting Page4 October 8, 2003 pending agreement of past due monies, and the formal agreement is expected to be submitted for approval during the November cycle. It was requested that General Counsel review the agreement carefully to make sure the interpretation of the verbiage contained was appropriate in order to avoid payment problems currently being faced as a result of the agreement entered into in 1972. Assistant General Counsel Tom Nixon assured the Directors he would review the agreement and provide revised language, as necessary, to avoid payment issues. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. (12) INFORMATIONAL PRESENTATIONS a. FAHR03-86 Connection Fee Calculation Methods and Policies Gary Streed, Director of Finance, reported this was the second report on the Connection Fee Calculation Methods and Policies. He discussed: (1) Capital Investment Equalization Method, which was the method used to calculate connection fees in 1989 and 1999; (2) Variations on the Capital Investment Equalization Method, which provides two alternatives; (3) Growth Pays for Growth, the incre mental cost method; (4) Bedrooms as Basis for Residential CFCCs; and (5) Sources of Future Flows. Mr. Streed reported that proposals for annexation fees and connection fees would be brought to the committee in the near future for review. (13) CLOSED SESSION The Committee convened in Closed Session at 6:15 p.m. pursuant to Government Code Section 54957 .6 to discuss and consider Agenda Item Nos. 13(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. A report of the actions taken will be publicly reported at the time the approved action becomes final re Agenda Items Nos. 13(a)(1) and (2). RECONVENE IN REGULAR SESSION: At 6:29 p.m., the Committee reconvened in regular session. (14) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (15) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT Book Page 10 Minutes of the Finance, Administration and Human Resources Committee Meeting Page 5 October 8, 2003 There were none. (16) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled for November 12, 2003 at 5 p.m. (17) ADJOURNMENT The Chair declared the meeting adjourned at 6:29 p.m. Submitted by: Penny M. Kyle FAHR Committee Secretary G:\wp.dta\agenda\FAHR\FAHR2003\0903\091003 FAHR Minutes.doc Book Page 11 FAHR COMMI TTEE AGENDA REPORT Orange County Sanitation District FROM: Gary G. Streed, Director of Finance Originator: Michael D. White, Controller Meeting Date 11/12/03 Item Number FAHR03-88 SUBJECT: CERTIFICATES OF PARTICIPATION (COP) MONTHLY REPORT- OCTOBER 2003 GENERAL MANAGER'S RECOMMENDATION ' To Bet of Dir. Item Number Receive and file Certificates of Participation (COP) Monthly Report for the month of October 2003. SUMMARY The District began issuing Certificates of Participation (COPs) on a variable interest rate basis in 1990. These variable rate COPs were a part of our long-term financing plan which also included some more traditional fixed rate borrowing. In 1992 and 1993, some of the fixed rate COPs were refunded and replaced with synthetic-fixed rate COPs. These are variable interest rate COPs that are also subject to a long-term fixed-rate interest exchange agreement (SWAP). The SWAP provides the maximum interest rate to be paid by the District, and is less costly than traditional fixed rate borrowing. In August 2000, the entire financing program was restructured and modernized to incorporate and take advantage of the consolidation of District books of account and revenue structure. This process has reduced the number of COP issues from five to three; 1992 Refunding COPs, 1993 Refunding COPs and 2000 Refunding COPs. The 2000 COPs can be divided into Series A and Series B, if additional remarketing agents are desired. In August 2003, the District issued $280 million of fixed rate COPs, Series 2003, that have varying coupon rates that are matched against the varying maturity dates. The true interest cost for the entire issue is 5.15 percent. Variable interest rate COPs can be put back on the market by the buyer each day. When this happens, they must be remarketed or sold to another buyer. This process, called remarketing, is generally provided by a municipal bond underwriter. The remarketing agent sets the interest rate they believe is required to sell the COPs. Some issuers believe that having more than one remarketing agent promotes competition and results in lower interest costs. Staff has monitored variable interest rate issues of other agencies since the inception of our program. The attached charts are described in the "Additional Information" section of this agenda report. They are provided monthly to compare our actual interest rates to a composite index, and to other selected issuers of similar credit quality, and with COP issues of similar amounts. Many variables affect interest rates, but staff expects our rates to be among the lowest. PRIOR COMMITTEE/BOARD ACTIONS N/A Book Page 12 PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. [8] Not applicable (information item) ADDITIONAL INFORMATION The first graph entitled, "OCSD COP Rate History Report," shows the actual variable interest rates paid 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 "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. ATTACHMENTS 1. Graph -OCSD COP Daily Rate History Report 2. Graph -Comparative Daily COP Rate History Report 3. Graph -COP Rate History, Comparison of Highest & Lowest Rates 4. Tabular -COP Rate History, Comparison of Monthly Averages GGS:MW:lc G:\wp.dta\agenda\FAHR\FAHR2003\ 1103\03-88.COP .doc Revised: 06/04/03 Book Page 13 Page2 t, I gilld )[OOH G') 1J if C CD )> "C ~ RATE(%) II) ~ -I CD a. m C. or 0 -N w ~ CJ'I en ~ --:!I .,, :::, 6-Nov-02 5· 1\5 I II) "' :::, "' 0 0 .!II ,ti 20-Nov-02 l ... CD cc 1 ... cc ! w :;:, j;;; .,, 4-Dec-02 5· 0 0 II) _c.,J :::, I "' 18-Dec-02 c;, --.J I 1J m 1-Jan-03 s: :x: ci5 --i I 15-Jan-03 + ~I I I I ·~ I Q 11 co 0 --.J 29-Jan-03 + t> I I I * I 0 11 0 en 12-Feb-03 t ~ * ¢ 11 C 0 26-Feb-03 + 11> * t!J I I 0 12-Mar-03 -a I C +❖+ 26-Mar-03 j 0~ r Cl))>1J or-(l)-ll> 9-Apr-03 I ::::i.Q5· -I -< (l) C/)(l) (/l:E~ 23-Apr-03 ~ $! Nw CD 8co- u) O'" (l) 7-May-03 ~ m -I (0 u) :::o m 1-May-03 N :C 4-Jun-03 I o- ++ 18-Jun-03 o en w -I C/)1J 0 g~ G)N 2-Jul-03 ::0 (1)0 -< :JO cno 16-Jul-03 :E ::0 Ill "C m 30-Jul-03 -a 13-Aug-03 t P l I * I Q 11 0 :::0 27-Aug-03 t t, I I I I * 1¥ ¢ I ! -I 10-Sep-03 24-Sep-03 8-Oct-03 22-Oct-03 t;o 0 0 ~ '"Cl i:,, ~ ~ ...... VI Prepared by Finance, 11/3/2003, 2:36 PM I -~ 0 - COMPARATIVE DAILY COP RATE HISTORY REPORT October 2003 4.00 _____ __!:ti!,,..._..._'!!!!!!!!!1!!!!!!!!!!!!"'!11!!!!!!'!!!!!!!!!!!!"!!!""""""-""'!1!!'!!!!!"!!!'!!!!""""--!!!!!!!!!!-!!!!!!!!!!!"""-!!!!!!!!!!!"""-!!!!!!!!!!!"~!!!!'!!!!!!!!!!!!!!!!!!!!!!!!!!"--""!""'!'!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!l!l!!!!!!!!!!'!!!!"!!!ll!!'!!!!!!!'!!!!!!!!!!L---, 3.00 -1-----------------------------------------------t ~ 2.00 ~ 1.ooln7~,............_ .,_______r,--, __ r-,--, __ ~ r-r--, I I I ,~ OJ 111, l 11 ,1 11, 111 , 111, 111 , 111 J 11 , m , 111 , 111 J DATE ~ ~ 8 8 8 8 8 8 8 8 8 8 > u c ~ ~ ~ ~ c ~ ci ~ ~ o w m w ~ ~ m ~ ~ ~ w 8 Z O , ~ ~ , ~ W IIOCSD •COMPOSITE INDEX G:\excel.dta\fin\2220\geggi\Finance\dailycopintrate.xls 1.5 1.25 -~ w I-~ 1 0.75 0.5 -~~~ HIGH LOW rPW/IRVIID LMERYUIRVIID !iliijt.Jla COP RATE HISTORY COMPARISON OF HIGHEST & LOWEST RATES }}/ ,•,•,•,••••• 1 1 111 illllllilij1 iii' Ii ;~?{? ..... -... ·.~ tfl/~-·, ••• ••• :a ::. ·1· • • • • • • ••• :1: t.: ;t: :t: ·1· • • • • ... ;••• •:· ;.: Ii II ll'ill \~)Ji . lrm 03 _ hd P:J Aue 03 IPWIIRIM'l I ILEH/IRV.U I ILEHIIRVIID I ILEH/IR\/VD I MERYUIR\11,P MERYUIRVIID MERYUIRWD SBIIRVIID Sl:l1,Jl,l a Highest rate D OCSD/PW 2000 • OCSD/PaineWebber • Lowest rate :ii :U • •• ••• ••• ·::: ··: :ii :. •• ··: ii: :u ••• • •• ••• ··: •• ••• ILEH/1 RIM:l MERYIJIRVIID .QllLJl3. G:\excel.dta\fin\2220\geggi\Finance\RA TEH 1ST _HILO _bargraph Prepared by Finance, 11/3/2003, 2:37 PM tx, 0 ~ i .... --..I Prepared by Finance, 11/4/2003, 11 :20 AM Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 AVERAGE DAILY COP RA TE HISTORY COMPARISON OF MONTHLY AVERAGES NOV 2002 -OCT 2003 OCSD $218.6M $46M Series 2000 Series 93 Ref Composite Paine Webber Paine Webber Index* 1.330 1.330 1.320 1.050 1.050 1.040 0.850 0.850 0.850 1.050 1.050 1.040 1.050 1.050 1.050 1.160 1.160 1.150 1.210 1.210 1.190 0.990 0.990 0.980 0.670 0.670 0.680 0.770 0.770 0.760 0.890 0.890 0.880 0.890 0.890 0.880 0.993% I 0.993% 0.985% ESTIMATED ANNUAL INTERESl PAYMENTS PER $100M PAR AMOUNl $ 992,500 I s 992,500 Is 985,000 *FOOTNOTE Composite index consists of the following COP transactions: . IRWD, Series 86-COP, 88, 95, $106.1M, Solomon Smith Barney . IRV\/0, Series C-Ref 93-8, 85-8, $62.1 M, Lehman Brothers . IRV\/0, Series 91, 93, 85, $93.0M, PaineWebber . IRV\/0, Series 89, C-Ref 93-A, C-Ref 95, $70.9M, Merrill Lynch . Western Riverside Co. Reg. Wastewater Auth., Series 96, $25.4M, PaineWebber . Orange Co., Irvine Coast Asst. Dist. 88-1, $94.5M, J.P. Morgan G:\excel.dta\fin\2220\geggi\Finance\COPdaily$rate comparison FAHR COMMITTEE Meeting Date 11/12/03 AGENDA REPORT Item Number FAHR03-89 Orange County Sanitation District FROM: Lisa Tomko, Director of Human Resources Originator: Lisa Arosteguy, Human Resources Supeivisor SUBJECT: EMPLOYMENT STATUS REPORT AS OF OCTOBER 28, 2003 GENERAL MANAGER'S RECOMMENDATION Receive and file the Employment Status Report SUMMARY The number of full-time equivalent (FTE) employees at the District is 548.25 as of October 28, 2003. PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY None BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. [8J Not applicable (information item) ADDITIONAL INFORMATION The actual number of employees (headcount) was 558 as of October 28, 2003. There were five new hires: • Two (2) Senior Laboratory Analysts (Environmental Sciences Lab) • Accounting Assistant I (Accounting) • Facilities Worker/Painter (Plant Facilities Maintenance) • Office Assistant (Electrical and Instrumentation Maintenance) G:\wp.dta\agenda\FAHR\FAHR2003\1103\03-89.EE Status Apt.doc Revised: 06/04/03 Book Page 18 Page 1 To Bc1. of Dir. Item Number ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. October 28, 2003 Employment Status Report 2. Performance compared to budgeted FTE's G:\wp.dta\agenda\FAHRIFAHR2003\1103\03-89.EE Status Apt.doc Revised: 06/04/03 Book Page 19 Page2 ttl 0 0 :,,;- ;,o (Jq ~ t..J 0 EMPLOYMENT STATUS REPORT AUTHORIZED FTE ACTUALFTE OIV REG 0.50 0.75 TOTAL REG 0.50 0.75 LOA TOTAL 110 General Management Admin 2.00 . . 2.00 2.00 -. 2.00 120 Administrative Services 8.00 0.50 . 8.50 7.00 0.50 -. 7.50 130 Communication Services 7.00 . . 7.00 6.00 . . 6.00 General Management Totals 17.00 0.50 . 17.50 15.00 0.50 . . 15.50 210 Finance Administration 2.00 . . 2.00 2.00 -. . 2.00 220 Accounting 18.00 . . 18.00 16.00 . 0.75 -16.75 230 Purchasing & Warehousing 19.00 0.50 . 19.50 17.00 1.00 . -18.00 Finance Totals 39.00 0.50 39.50 35.00 1.00 0.75 36.75 510 Human Resources Admin 5.00 . . 5.00 4.00 ---4.00 Interns Intern Program (510) 9.00 . . 9.00 . 4.00 --4.00 520 Employee Development 3.00 --3.00 2.00 -. . 2.00 530 Safety & Health 7.00 -. 7.00 7.00 . . . 7.00 540 Human Resources 6.00 . . 6.00 6.00 ---6.00 Human Resources Totals 30.00 . . 30.00 19.00 4.00 . . 23.00 610 Technical Services Admin 2.00 . . 2.00 2.00 --. 2.00 620 Environmental Comp & Mont 21.00 . . 21.00 19.00 050 . 19.50 630 Environmental Laboratory 36.00 1.00 . 37.00 32.00 2.00 -. 34.00 640 Source Control 40.00 . . 40.00 37.00 . -. 37.00 Technical Services Totals 99.00 1.00 . 100.00 90.00 2.50 . . 92.50 710 Engineering Admin 3.00 . . 3.00 3 00 . . . 3.00 740 Planning 14.00 . . 14.00 14.00 -. . 14.00 750 Project Management Office 14.00 -0.75 14.75 11.00 1.50 . 12.50 760 Engineering & Construction 48.00 . . 48.00 43.00 -. 3.00 46.00 Engineering Totals 79.00 . 0.75 79.75 71.00 . 1.50 3.00 75.50 810 O&M Administration 2.00 . . 2.00 2.00 . . -2.00 420 Collection Facilities Mtce 28.00 1.00 . 29.00 20.00 1.00 -. 21.00 430 Facilities Maintenance 31.00 1.00 . 32.00 29 00 1.00 -1.00 31.00 820 O&M Process Support 14.00 0.50 . 14.50 11.00 0.25 -. 11.25 830 Plant 1 Operations 40.00 0.50 0.75 41.25 36.00 0.50 0.75 37.25 840 Plant 2 Operations 45.00 0.50 . 45.50 44.00 0.50 -. 44.50 850 Mechanical Maintenance 55.00 0.50 . 55.50 5300 0.50 -1.00 54.50 860 Electrical & Instrumentation Mtce 54.00 0.50 . 54.50 53.00 0.50 -1.00 54.50 880 Air Quality & Special Projects 11.DD . 11.00 11.00 . --11.00 Operations & Maintenance Totals 280.00 4.50 0.75 285.25 259.00 4.25 0.75 3.00 267.00 910 IT Administration 2.00 . . 2.00 2.00 ---2.00 930 Customer & Network Support 17.00 . . 17.00 14.00 . -1.00 15.00 940 Programming & Database Sys 12.00 . -12.00 10.00 . . . 10.00 950 Process Controls Integration 13.00 . . 13.00 11.00 . . . 11,00 Information Technology Totals 44.00 . . 44.0D 37.00 . . 1.00 38.00 GRAND TOTAL 588.00 6.50 1.50 526.00 12.25 3.00 7.00 ·I TOTAL TOTAL AUTHORIZED FTE ACTUALFTE 596.00 548.25 C:\Documents and Settings\ericksonk\Local Settings\Temporary Internet Files\OLK5\03-04 Position Control-EMT REPORT Recruitments \:av;,nz,i . .-;;:-, - -1 GO 1.00 1 (':(; 1.00 2XW -. 1.00 1 iii 1.00 t [50 2.00 2.75 1.00 1 t1r 1.50 ~-,,.J(, 1.00 1 00 . -. 3.50 7.00 -. -1 so 3.00 -~~ (;() 3.00 ✓~-UG 6.00 /.50 -. -. 1.00 ~ 'l~ -'-~ 3.00 :::00 4.00 4.25 . - 7 00 ?()() 1.00 I.()') 3.00 ?.;:;; 3.00 :icr; -I 'Y) -UJ<) . - . . 14.00 HS.2:5 - 2.00 20G -;::.on -2 0(~ 2.00 (),()() I· Total Tot;i\ V ;:<:~ .. u1d0s Recruitments + (i:;'~: ~ ;w:;;;~:t:~:: ~1:.;.; 32.50 1S.Z5 10/30/2003 t,:I 0 ~ .,, ~ N ..... STAFFING REPORT 600 ,------------=---------------, 590 580 570 560 550 540 530 520 510 G ~~;;--r-;-;;;;-r~T-::::::-r-:-:-::-:-:--r--=-i---,---.----,---.--J JAN I FEB I MAR I APR I MAY I JUN I JUL I AUG I SEP I OCT I NOV I DEC _._ AUTHORIZED I 567 I 567 I 567 I 567 I 567 I 567 I 596 I 596 I 596 I 596 I 596 FTE -ACTUAL FTE 532.50I535.50 1540.00 I 539.75 I 540.75 1540.75 1543.25 I 544.75 1544.25 I 545.25 I 548.25 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Jim Matte, Safety & Health Supervisor Meeting Date To Bd. of Dir. 11/12/03 Item Number Item Number FAHR03-90 SUBJECT: OSHA Incidence Rates and Workers' Compensation Claims and Costs Report GENERAL MANAGER'S RECOMMENDATION Receive and file the OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. SUMMARY Safety and Health Division staff track OSHA Incidence Rates for DART * Cases (DART Incidence Rate) and Total Accidents (Total Injury Frequency Rate). There were nine DART Cases District-wide for the period of January-September 2003. The industry average is 5.4 for the DART Case Incidence Rate while the District Incident Rate is 2.24 for the period of January-September 2003. There have been 10 OSHA Recordable Accidents District-wide for the period of January-September 2003. The industry average is 9.0 for the Total Injury Frequency Rate while the District Incident Rate is 2.49 for the period of January-September 2003. * DART is an acronym that stands for Days Away, Restricted, or Transfer and replaces the phrase Lost Workday. The Division also tracks the District's Workers' Compensation Claims and Costs. The District's claim count for Fiscal Year 2003-2004 is one. The costs associated with these claims for year-to-date is $18,816, which includes medical bills, temporary disability payments, legal costs and a claim reserve account. PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY N/A Revised: 06/04/03 Book Page 22 Page 1 BUDGET IMPACT 8 • ~ This item has been budgeted. (Line item: ) This item has been budgeted, but there are insufficient funds. This item has not been budgeted. Not applicable (information item) ADDITIONAL INFORMATION The District had nine DART cases and one other injury that required only medical treatment for the period of January-September 2003. The reporting period is for 45 days prior to committee meeting. ALTERNATIVES NIA CEQA FINDINGS NIA ATTACHMENTS 1. OSHA Incidence Rates Reports for DART Cases and Total Injuries 2. Worker's Compensation Claims and Costs Revised: 06/04/03 Book Page 23 Page 2 Safety Division DART Cases District-Wide There have been nine DART Cases in 2003 (January -September) (DART -Days Away, Restricted or Transfer; replaces Lost Work Day.) DART Cases :fl 25 Kl 20 +--~-.----1 (.) 0 15 lii 10 .c E 5 ::J z 0 +--'-_.__-,--_._ __ ._,---J'-...,__-,-_._....;,_--,-_.__,.__, 1999 2000 2001 calendar Year 2002 2003 OSHA Incidence Rates District-Wide The industry average is 5.4 and the DART Incidence Rate for the district is 2.24 for 2003 (January -September). The OSHA rate is calculated by multiplying the number of injuries by 200,000 and dividing the sum by total hours worked. The rate is also based on the data for the calendar year so the rate will change as the number of hours worked increases. Ql 5.00 cil 4.00 a: Ql 3.00 (.) C: 2.00 Ql ;g 1.00 (.) .!: 0.00 1999 OSHA Incidence Rates DART Cases 2000 2001 calendar Year 2002 2003 Book Page 24 Total Injuries District-Wide There have been 1 O OSHA Recordable Accidents for 2003 (January -September) Total OSHA Recordable Accidents 0 w 60 +-- 11 ~ill -,-~--•-- 1999 2000 2001 2002 2003 Calendar Year OSHA Incidence Rates District-Wide The Total Injury Frequency Rate is a combination of the DART Cases and the cases that require Other Medical Treatment. The industry average for Total Injury Frequency rate is 9.0 and the District rate is 2.49 for 2003 (January-September). First Aid cases are not included in the calculation of this rate. 10.00 .m lP. 8.00 § 6.00 -2l 4.00 ~ 2.00 0.00 OSHA Incidence Rate Total Injuries 1999 2000 2001 Calendar Year 2002 2003 Book Page 25 Workers Compensation Claims and Costs The Workers Compensation Claims and Cost are reported by fiscal year. The DART and Total Injury graphs shown above are calendar year rates as required for OSHA recordkeeping. All claims and medical invoices are reviewed by a third party to ensure that proper medical treatment is provided for injured employees and the costs for the treatment are within established guidelines. The medical bills reviewed July 2003 -September 2003 totaled $59,510.94. Medical treatment costs are charged to the fiscal year in which the injury occurred. All open claims have the potential to incur additional cost. After the medical review process, the amount was reduced to $36,002.89, which resulted in savings of $23,508.05 for this reporting period. Workers Compensation Claims and Costs Fiscal Period Claim Count Open Claims Total Incurred 7/1/85 -6/30/86 38 0 $270,793 7 /1 /86 -6/30/87 53 0 $99,933 7 /1 /87 -6/30/88 51 0 $173,583 7/1/88 -6/30/89 41 0 $153,481 7 /1 /89 -6/30/90 61 0 $287,479 7/1/90 -6/30/91 76 0 $121,978 7/1/91 -6/30/92 58 2 $213,232 7/1/92 -6/30/93 58 0 $93,198 7/1/93 -6/30/94 47 0 $217,922 7/1/94 -6/30/95 46 0 $276,359 7/1/95-6/30/96 46 1 $191,323 7 /1 /96 -6/30/97 36 1 $377,924 7 /1 /97 -6/30/98 45 1 $1,026,722 7 /1 /98 -6/30/99 38 2 $288,508 7 /1 /99 -6/30/00 43 4 $354,554 7/1/00-6/30/01 32 4 $434,364 7/1/01 -6/30/02 30 9 $271,963 7/1/02-6/30/03 18 6 $100,991 7/1/03-6/30/04 1 1 YTD $18,816 "Total Incurred" includes medical bills, temporary disability payments to employees, legal costs, and a claim reserve account. Book Page 26 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Gary G. Streed, Director of Finance Originator: Michael D. White, Controller Meeting Date To Bel. of Dir. 11/12/03 11/19/03 Item Number Item Number FAHR03-91 SUBJECT: QUARTERLY INVESTMENT MANAGEMENT PROGRAM REPORT FOR THE PERIOD JULY 1, 2003 THROUGH SEPTEMBER 30, 2003 GENERAL MANAGER'S RECOMMENDATION Receive and file the Quarterly Investment Management Program Report for the period July 1, 2003 through September 30, 2003. SUMMARY Section 15.0 of the District1s Investment Policy includes monthly and quarterly reporting requirements for the District1s two investment portfolios. These two funds, the "Liquid Operating Monies," and the "Long-Term Operating Monies" are managed by PIMCO, the District1s external money manager. The ongoing monitoring of the District's investment program by staff and Callan Associates, the District's independent investment advisor, indicates that the District's investments are in compliance with the District's adopted Investment Policy and the California Government Code, and that overall performance has tracked with benchmark indices. In addition, sufficient liquidity and anticipated revenues are available for the District to meet budgeted expenditures for the next six months. The District's portfolios do not include any reverse repurchase agreements or derivative securities. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT • • ~ This item has been budgeted. (Line item: ) This item has been budgeted, but there are insufficient funds. This item has not been budgeted. Not applicable (information item) G:\wp.dta\agenda\FAHRIFAHR2003\1103103-91.Qlly Investment Report.doc Revised: 8/20/98 Book Page 27 Page 1 ADDITIONAL INFORMATION Performance Reports The Quarterly Strategy Review, prepared by PIMCO, and the Investment Measurement Service Quarterly Review, prepared by Callan Associates, are attached for reference. Also attached are Long-Term and Liquid Operating Monies Summary of Performance Data and Portfolio Statistics charts that depict the performance results, estimated yield and duration, credit quality, and sector diversification of the District's portfolios, as of July 1, 2003 and September 30, 2003. 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 July 1 through September 30, 2003. Portf~ho Performance Summafy Quarter Ended September 30, 2003 Liquid Operating Monies(%) Long-Term Operating Monies(%) Total Rate Total Rate of of Return Benchmark11> Return Benchmark<1> 3 Months 0.29 0.25 0.34 0.34 6 Months 0.60 0.53 1.80 2.00 9 Months 0.96 0.83 2.98 3.16 12 Months 1.47 1.22 4.09 4.55 Since inception 30 Sept. 95 4.77 4.27 6.70 6:68 Market Value $38.0M $385.9M Average Quality ''AAA" "AAA" Current Yield(%) 4.2 4.4 l=slimatedYield to Maturity(%) 1.3 2.5 Quarterly Deposits (Withdrawals) $(28.7)M $54.1M Estimated Annual Income $1.5M $16.0M (1} Benchmarks: • Liquid Operating Portfolio: 3-Month Treasury Bill Index • Long-Term Operating Portfolio: Merrill Lynch Corp/Govt. 1-5 Year Bond Index Portfolio Market Values Comparative marked-to-market quarter-end portfolio values are shown in the following table, and in the attached bar chart. Liquid Quarter Operating Ending Monies($M) 31 Dec. 02 64.3 31 Mar. 03 49.6 30 June 03 66.5 30 Sept. 03 38.0 G:\wp.dtalagenda\FAHR\FAHR2003\1103\03-91.0tly Investment Report.doc Revised: 8120/98 Book Page 28 Long-Term Operating Monies ($M) 321 .2 325.0 329.7 385.9 Page 2 District's Investment Account Balances as of September 30, 2003 Investment Accounts State of Calif. LAIF Union Bank Checking Account PIMCO -Short-term Portfolio PIMCO -Long-term Portfolio Petty Cash TOTAL Debt Service Reserves w/Trustees ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. Historical Yield Curve Graph 2. PIMCO Quarterly Report Book Balances September 30, 2003 $ 34,246,098 1,485,007 37,481,283 382,596,263 5.000 $455 813 651 $191 58Q 813 3. Quarter End Portfolio Market Value Bar Chart Estimated Yield(%) 1.64 0.94 1.43 2.83 NIA 2.62 1.84 4. Summary of Performance Data and Portfolio Statistics -Liquid Operating Monies 5. Summary of Performance Data and Portfolio Statistics -L-T Operating Monies 6. Asset Summary by Asset Type -Liquid Operating Portfolio 7. Asset Summary by Asset Type -Long Term Portfolio 8. Investment Listing of Liquid Operating and L-T Portfolios (Yield Analysis Report). 9. Investment Transactions and Balances in LAIF 10. Callan Report (separate bound document) 11. PIMCO Report (separate bound document) G:\wp.dta\agenda\FAHRIFAHR2003\1103\03-91.Qtly Investment Report.doc Revised: 8/20/98 Book Page 29 Page 3 t,:j 0 ~ ""l:;I i w 0 Prepared by Finance, 11/5/2003, 10:44 AM JHISTORICAL YIELD CURVEI 5.25 5.00 4.75 - 4.50 4.25 4.00 3.75 3.50 [ 3.25 C 3.00 .J w 2.75 -• 2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.75 0.50 r 0 E 0 &.. ... &.. &.. &.. &.. E >, >, >, >, >, >, """" N C") "'lit' u, r-,. C") CD [-~ 31-M~r-03 ---½--30-Jun-03 ---30-Sep-03 G:\excel.dta\fin\2220\geggi\Finance\HistoricalTREASURYyieldcurve &.. &.. &.. >, >, >, 0 0 0 """" N C") October 30, 2003 Mr. Mike White Controller Orange County Sanitation District 10844 Ellis A venue Administration Building Fountain Valley, CA 92708-7018 Re: 3rd Quarter 2003 Report Dear Mike: PIM C 0 840 Newport Center Drive Suite 300 Newport Beach, CA 92660 Tel: 949.720.6000 Fax: 949.720.1376 The following is a description of events in the bond markets during the 3rd quarter of 2003 and an analysis of the strategies undertaken in the Orange County Sanitation District's Long-Term, Liquid, and COP Proceeds portfolios over the period. We have also included a section on strategies to be pursued in your portfolios during the coming months. Bond Market Recap: High Grade Bonds Lose Ground In Volatile Third Quarter Most investment grade bonds lost ground in the third quarter because of a sharp rise in interest rates in July, the worst month in the U.S. government bond market in more than 23 years. Yields on benchmark IO-year Treasuries soared more than 130 basis points in July, reversing a rally that had seen the 10-year yield plunge to a 45-year low near 3 percent in June. Though bonds bounced back later in the quarter1 the damage in July was enough to push returns for the broad market into negative territory for the full period, as the Lehman Brothers Aggregate Bond Index posted a modest loss of0.15 percent. The July swoon came amid expectations for stronger economic growth in the second half of 2003 and worries about higher interest rates. The trigger for the sell-off was a suggestion by the Federal Reserve that it was less inclined to pursue a so-called "unconventional" approach to reflating the economy than it had previously led investors to believe. Demand for Treasuries fell because this approach entails driving down longer term interest rates by purchasing Treasuries further out the yield curve. The 10-year Treasury yield finished the quarter at 3.95 percent, up 43 basis points from the prior quarter but not far from where it started the year. Bonds bounced back later in the third quarter as lingering overcapacity, weak labor markets and faster productivity growth gave investors confidence that inflation would remain well contained. Corporate managers not yet convinced that economic growth will accelerate remained cautious about investment and hiring. Their reluctance contributed to rapid labor productivity growth as companies squeezed more out of their existing capital stock and employees. In a soft labor market, companies captured the gains from this enhanced productivity in the form of higher profits. Book Page 31 Highest Yielding Bonds Weather Market Turbulence in Q3 The following is a summary of fixed income sector performance: • Mortgages lagged Treasuries on a like-duration basis during a volatile period in the mortgage market. Mortgage rates rose during the quarter and refinancing volume slowed by more than 70 percent from record highs reached in May. As refinancing slowed, mortgages' durations extended from historically low levels at the start of the quarter. This volatility caused mortgage yield premiums to widen substantially in July. The sector recovered later in the period, however, as rates stabilized and then fell. Demand from banks attracted to mortgages' relatively high yields and strong credit quality supported the market later in the period. • Corporate bonds, particularly lower-grade issues, held up better than Treasuries and mortgages, as firming corporate profits boosted investor demand. BBB-rated bonds continued to fare well relative to their higher-rated counterparts. Differences in average credit premiums between BBBs and AAs fell to only 58 basis points, near their historical average, from more than 160 basis points late in 2002. • Emerging market bonds continued to outperform during the quarter as their high yields cushioned investors against Treasury volatility. The rally was broad based, as many issuers have improved their credit fundamentals, leading to compressed credit premiums. • Treasuries lagged most developed bond markets even though rates rose worldwide during the third quarter. The U.S. was more influenced by technical factors, such as speculation about potential Fed purchases of Treasury bonds, than were other markets. Performance Attribution: Long Term Portfolio The Long-Term portfolio that PIMCO manages on behalf of Orange County Sanitation District turned in a 0.34 percent return over the quarter, as did its benchmark, the Merrill Lynch 1-S year Government Corporate Index. This portfolio's performance was due in part to the following factors: • • • • • Above-index duration early in the quarter was negative as rates rose; we allowed mortgage durations to lengthen in order to retain mortgages' attractive yields and credit quality A broader-than-index curve structure was negative for the quarter as yields rose most on maturities outside the index, especially in July A mortgage emphasis detracted from returns as mortgages were adversely affected by high levels of volatility Corporate holdings were positive as rising profits stimulated investor demand; positive security selection of telecom and auto issues further enhanced returns A tactical allocation to real return bonds was positive as real yields rose less than those on nominal Treasuries 2 Book Page 32 Liquid Portfolio The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District turned in a 0.29 percent return over the quarter, outperforming the 3-month Treasury Bill Index by 4 basis points. This portfolio's performance was due in part to the following factors: • Near-index duration was neutral for returns • A corporate emphasis was positive as rising profits stimulated investor demand; positive security selection of telecom issues added to returns • Use of higher yielding securities such as commercial paper and short-term notes contributed to performance "2003 COP Proceeds -Future Construction" Portfolio The COP Proceeds portfolio that PIM CO manages on behalf of Orange County Sanitation District funded in late August and turned in a 0.14 percent return in the month of September. The portfolio outperformed the 3-month Treasury Bill Index by 6 basis points for the partial quarter period despite a volatile quarter in bond markets. This portfolio's performance was due in part to the following factors: • Near-index duration was neutral for returns • A corporate emphasis was positive as rising profits stimulated investor demand • Use of higher yielding securities such as commercial paper and short-term notes contributed to performance Economic Outlook: Economy to Improve Near Term But Sustainability in Doubt PIMCO is optimistic about the cyclical outlook, forecasting an upturn in the U.S. over the next 6 to 12 months with a positive spillover effect into global demand. This revival will, however, either exacerbate or fail to redress secular imbalances such as the U.S. current account deficit, structural rigidities in Europe and huge public sector debt in Japan. We are pessimistic that the upturn will be sustained beyond a cyclical time frame because confronting these imbalances will constrain growth. Weak labor markets, low capacity utilization and rapid productivity growth will keep inflation tame over the next year. With inflation under control, interest rates will fluctuate near current levels, with the 10- year Treasury yield hovering close to 4 percent. There will be volatility around economic releases, however, as markets reassess prospects for growth. Key elements of PIMCO's forecast are: • Disposable personal income will get a boost from federal tax cuts and the lagged impact of the mortgage-refinancing boom. The Federal Reserve will support recovery by keeping the federal funds rate at 1 percent for at least the next year. 3 Book Page 33 • Recent strength in riskier asset classes will bolster confidence among investors and make corporate balance sheet repair, already well advanced, easier to accomplish. It remains unclear, however, whether corporate risk appetites will revive enough to fuel the rebound in capital spending and hiring that is critical for sustained growth. • Growth prospects are improved in Europe, helped by the U.S. recovery and tax cuts in Germany. Growth will remain below potential, however, held back by rigid product and labor markets. Stronger external demand is sparking a recovery in Japan, especially among globally competitive Japanese corporations. A rally in Japanese stocks has bolstered the balance sheets of Japan's troubled banks. • China, struggling to employ workers leaving farms and troubled state-owned firms, will continue its export-driven economic policy. To keep its exports competitive, China will help fund the U.S. trade deficit on favorable terms and resist a currency revaluation. Over the longer run, however, China will allow its own consumers to gain from a stronger currency, implying a weaker dollar and eventual upward pressure on U.S. interest rates. Ample Opportunities To Add Value in Fixed Income Markets With no clear trend expected in rates in the near term, we will target near-index duration. However, we will take exposure to the short end of the U.S. and European yield curves as markets price in more restrictive central bank policies than we foresee. A steep yield curve presents the opportunity to reap gains via "roll down," or price appreciation that arises as bonds are revalued at successively lower yields as they approach maturity. Another way to exploit the steep curve is to buy bonds with longer settlement periods and invest cash backing the unsettled issues in short-term debt with relatively high yields. Mortgage-backed bonds are fairly priced, so we will target a near-index weighting. We will remain underweight in corporates, because they generally pay slim yield premiums for credit risk. Outside these core strategies, however, real return, municipal and emerging market bonds remain compelling. TIPs offer attractive yields relative to long-run averages and hedge against secular inflation risk. Municipal issues provide yields near those of taxable debt and are less vulnerable to selling from non-U.S. investors than Treasuries. High quality emerging market bonds also enhance portfolio yield and will benefit from a pickup in growth in developed economies in the near tenn. Strategy: The following list highlights the strategies that will be used in the Long Term portfolio in the coming months: • Target near-index duration because we foresee no clear trend in interest rates in the near term • Retain broader-than-index curve position to enhance yield given a steep yield curve; this strategy will also benefit from "roll-down," or price appreciation as bonds are revalued at lower yields over time • Retain emphasis on mortgages to benefit from their long-term structural advantages; add value through coupon selection • Hold corporates to capture attractive yields vs. Treasuries, but do not increase allocations; many corporate issues offer slim credit premiums in a challenging economic environment • Hold TIPS, which offer yields above long-term averages and provide a hedge against secular inflation risk 4 Book Page 34 The following list highlights the strategies that will be used in the Liquid and COP Proceeds portfolios in the coming months: • Target duration slightly above the benchmark to capture extra yield available due to a steep yield curve • Take modest exposure to short maturity U.S. issues as markets price in more restrictive central bank policies than we foresee • In a challenging economic environment, limit corporate holdings to issues with attractive yields, compelling valuations and solid credit characteristics We hope you find this information useful. Please feel free to call us with any questions. Sincerely, Christine Telish, CF A Vice President 5 Book Page 35 John M. Miller, CF A Vice President o::J 0 0 :,;- ""Cl ~ (1) \.N °' OCSD Investment Management Program Quarter End Portfolio Values (Marked-to-Market) $450,000,000 ...---------------------~----------------------------~ $400,000,000 -1------------------------------------------------------l $350,000,000 -1-----r $300,000,000 ·t-----r $250,000,000 ·t-----r $200,000,000 +---------r $150,000,000 +-------f $100,000,000 +----- l~.ooo,oo~ I • • ~Ill . I! !I . lii/i/ilill!I . lllil!f[!!jlj 30 Jun 02 30 Sep 02 31 Dec 02 31 Mar 03 30 Jun 03 30 Sep 03 •Liquid Operating Monies r'J l ong-Term Operating Monies to 0 ~ l ('1) ~ --..) Summary of Performance Data and Portfolio Statistics Orange County Sanitation District Liquid Operating Portfolio Performance Periods Ended 9/30/2003 Total Portfolio 1 Before Fees(%) After Fees (%) Citigroup 3 Month T-Bill Index (%)2 Summary Information Total Markel Value ($MM) Quarterly Contributions ($MM) Estimated Annual Income ($MM) Estimated Yield to Maturity(%) Estimated Duration (yrs) Average Maturity (yrs) Average Quality Average Coupon (%) Tracking Error (3 yrs., %)3 Information Ratio (3 yrs.)4 -------4.77 4.25 4.63 4.10 4.27 3.168 i@11r•M•N ltiWH•Gil 66.5 38.0 16.8 -28.7 2.2 1.5 1.3 1..3 0.3 0.3 0.3 0.3 AAA AAA. 3.4 4.2 0.2 0.2 3.3 2.8 3.30 1.47 3.15 1.32 2.73 1.22 0.96 0.84 0.83 Sector Allocation Government Mortgages Corporates High Yield 0.60 0.51 0.53 Non U.S.$ Developed Emerging Markets Other Net Cash Money Markets Total 0.29 0.23 0.25 5-Year Return vs. Standard Deviation 11 r 10 9 ~ ~B I ';!. E 7 I ::, & 6 I ] 5 ~ ML 1-3 Yr. & Treasury N ~ 4 ~ • Portfolio c • Index ~ 3 I 2 f 1 • I 0 0 1 2 3 4 5 6 I X Citigroup 10-Yr. Slrip 7 8 9 10 11 Standard Deviation of Retum2 (%) % of Market Value % of Duration IIMM1IBB•t~•l1NBMH•l•llill!•IH1l1II 23 38 39 40 0 0 0 0 16 16 34 22 0 fl 0 0 0 fl 0 0 0 0 0 0 0 0 0 0 61 46 27 38 100 100 100 100 tx1 0 ~ i \.N 00 Summary of Performance Data and Portfolio Statistics Orange County Sanitation District Long Term Portfolio Performance Since Periods Ended 9/30/2003 9/3011995 Total Portfolio 1 Before Fees (%) 6.70 After Fees (%) 6.55 Merrill 1-5 Year Gov't.Corp. (%)2 6.68 6.09 5.94 6.29 ----- 7.22 4.09 2.98 1.80 0.34 7.06 3.93 2.88 1.73 0.30 7.74 4.55 3.16 2.00 0.34 5-Year Return vs. Standard Deviation :r -7 X LBAG ~6 ~ • Index Portfolio -g 5 a: "5l4 ~ I .l Citigroup 3. i3 r Mo 2 1 0 0 1 2 3 4 5 6 7 8 9 Standard Deviation of Return2 (%) % of Market Value % of Duration Summary lnlormat1on lll•t~•DBlmillH-~•111 Sector Allocation it1MHel1dM•fHmMii111&1mclM1tr-lluii Total Market Value ($MM) Quarterly Contributions ($MM) Estimated Annual Income ($MM) Estimated Yield to Maturity (%) Estimated Duration (yrs) Benchmark Duration (yrs) Average Maturity (yrs) Average Quality Average Coupon (%) Tracking Error (3 yrs., %)3 Information Ratio (3 yrs.}4 329.7 0.0 14.6 2.2 2.1 2.4 2.5 AAA 4.8 0.6 -0.9 385.9 Government 54.1 Mortgages 16.0 Corporates 2.5 High Yield 2.3 Non U.S. $ Developed 2.4 Emerging Markets 2.7 Other AAA Net Cash Equivalents 4.4 Total 0.7 --0.7 46 47 55 53 8 17 7 18 14 11 31 25 0 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 32 25 7 4 100 100 100 100 t:c UQUID OPER-PlMCO -OCSF07511102 Description CASH & CASH EQUIVALENTS U.S. DOLLAR INTEREST CERTIFICATES OF DEPOSIT-DOMESTIC FED HM LOAN BNK -LESS THAN 1 YR FEDERAL HOME LOAN MORTGAGE -LESS THAN 1 FNMA ISSUES -LESS THAN 1 YR MUTUAL FUNDS TREASURY BILLS -LESS THAN 1 YR U.S. DOLLAR CASH & CASH EQUIVALENTS ~ FIXED INCOME SECURITIES z (1) l,.) \0 U.S. DOLLAR BANKING & FINANCE INDUSTRIAL U.S. AGENCIES U.S. GOVERNMENTS UTILITY -TELEPHONE U.S. DOLLAR FIXED INCOME SECURITIES TOT AL ASSETS -BASE: Asset Summary by Asset Type with Sectors 9/30/2003 Cost Shares Par Base 468,854.70 1,400,000.000 1,400,000.00 6,100,000.000 6,081,765.24 6,200,000.000 6,171,369.67 3,300,000.000 3,288,893.54 175,658.110 175,658.11 1,200,000.000 1,194,191.67 18,375,658.110 18,780,732.93 18,375,658.110 18,780,732.93 4,950,000.000 5,121,180.00 300,000.000 308,808.00 7,200,000.000 7,441,266.00 5,800,000.000 6,251,984.38 650,000.000 677,046.50 18,900,000.000 19,800,284.88 18,900,000.000 19,800,284.88 37,275,658.110 38,581,017.81 1 Report ID: GL8251 Base Currency: USD Alternate Base Currency: Exchange Rate: Status: FINAL Market Value Base 468,854.70 1,400,000.00 6,081,765.24 6,171,369.67 3,288,893.54 175,658.11 1,194,191.67 18,780,732.93 18,780,732.93 5,036,662.50 302,013.00 7,293,131.32 5,877,952.00 659,646.00 19,169,404.82 19,169,404.82 37,950,137.75 % of Total 1.24% 3.69% 16.03% 16.26% 8.67% 0.46% 3.15% 49.49% 49.49% 13.27% 0.80% 19.22% 15.49% 1.74% 50.51% 50.51% 100.00% Net Unrealized Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -84,517.50 -6,795.00 -148,134.68 -374,032.38 -17,400.50 -630,880.06 -630,880.06 -630,880.06 Work:benc' Asset Summary Report ID: GL8251 Base Currency: USD by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LONG TERM OPER-PIMCO -OCSF07522202 9[30[2003 Status: FINAL Net Unrealized Cost Market Value % of Gain/Loss Description Shares Par Base Base Total Base CASH & CASH EQUIVALENTS U.S. DOLLAR CASH -180,169.24 -180,169.24 -0.05% 0.00 PENDING TRADES -24,662,805.47 -24,662,805.4 7 -6.39% 0.00 INTEREST 3,332,359.74 3,332,359.74 0.86% 0.00 COMMERCIAL PAPER -DISCOUNT 3,400,000.000 3,388,394.44 3,388,394.44 0.88% 0.00 FED HM LOAN BNK -LESS THAN 1 YR 32,300,000.000 32,183,468.43 32,183,468.43 8.34% 0.00 FEDERAL HOME LOAN MORTGAGE -LESS THAN 1 9,700,000.000 9,672,980.11 9,672,980.11 2.51% 0.00 FNMA ISSUES -LESS THAN 1 YR 42,800,000.000 42,651,438.17 42,651,438.17 11.05% 0.00 MUTUAL FUNDS 143,053.620 143,053.62 143,053.62 0.04% 0.00 TREASURY BILLS -LESS THAN 1 YR 4,500,000.000 4,478,218.75 4,478,218.75 1.16% 0.00 t;o U.S. DOLLAR 92,843,053.620 71,006,938.55 71,006,938.55 18.40% 0.00 0 ~ CASH & CASH EQUIVALENTS 92,843,053.620 71,006,938.55 71,006,938.55 18.40% 0.00 "Cl ~ FIXED INCOME SECURITIES (1) +:> 0 U.S. DOLLAR ABS -AIRPLANE RECEIVABLES 1,600,000.000 1,600,000.00 244,000.00 0.06% -1,356,000.00 BANKING & FINANCE 32,335,000.000 33,468,411.00 34,442,367.45 8.92% 973,956.45 COLLATERALIZED MORTGAGE OBLIGATION 2,504,229.760 2,504,229.76 2,718,717.04 0.70% 214,487.28 FHLMC MULTICLASS 1,198,327.690 1,199,604.37 1,246,776.08 0.32% 47,171.71 FHLMCPOOLS 194,797.030 195,424.71 200,869.18 0.05% 5,444.47 FNMA POOLS 47,749,442.050 48,990,910.44 49,207,916.28 12.75% 217,005.84 GNMA MULTI FAMILY POOLS 3 ,718,877.150 3,700,333.93 3,779,028.74 0.98% 78,694.81 GNMA SINGLE FAMILY POOLS 11,850,348.080 12,071,678.59 12,432,369.33 3 .22% 360,690.74 INDUSTRIAL 12,000,000.000 12,458,780.00 12,436,500.00 3.22% -22,280.00 INFLATION INDEXED SECURITIES 34,241,230.000 34,258,241.71 38,367,363.32 9.94% 4,109,121.61 PVT PLACEMENTS -MORE THN lYR 752,000.000 826,199.84 826,199.84 0.21% 0.00 U.S. AGENCIES 41,204,132.880 42,280,838.46 44,547,779.14 11.54% 2,266,940.68 U.S. GOVERNMENTS 92,597,276.280 100,770,646.50 100,926,237.71 26.15% 155,591.21 UTILITY -ELECTRIC 6,500,000.000 6,438,210.00 6,967,160.00 1.81% 528,950.00 UTILITY -TELEPHONE 6,000,000.000 6,594,240.00 6,578,400.00 1.70% -15,840.00 U.S. DOLLAR 294,445,660.920 307,357,749.31 314,921,684.11 81.60% 7,563,934.80 1 Workbench txi 0 ~ i .J::.. ...... LONG TERM OPER-PIMCO -OCSF07522202 Description FIXED INCOME SECURITIES TOTAL ASSETS -BASE: Asset Summary by Asset Type with Sectors 9/30/2003 Cost Shares Par Base 294,445,660.920 307,357,749.31 387,288,714.540 378,364,687.86 2 Report ID: GL8251 Base Currency: USD Alternate Base Currency: Exchange Rate: Status: FINAL Net Unrealized Market Value % of Gain/Loss Base Total Base 314,921,684.11 81.60% 7,563,934.80 385,928,622.66 100.00% 7,563,934.80 Workbench t:o 0 ~ i (1) .i::,. N YLDANAL OCSF07511102 DISTRICT: LIQUID OPERATING YIELD ANALYSIS 2003/09/30 PAGE RUN DATE RUN TIME 1 10/06/03 I 10.31.55 ========================================================·-=-==================================~=============================== PAR VALUE SECURITY ID SECURITY DESCRIPTION CASH & CASH EQUIVALENTS soo,000.00 FEDERAL HOME LN BK CONS DISC N 313384NJ4 MAT 10/24/2003 1,500,000.00 FEDERAL HOME LN BKS CONS DISC 313384NPO MAT 10/29/2003 J,l00,000,00 FEDERAL HOME LN BKS CONS DISC 313384PL7 MAT 11/19/2003 l,000,000,00 FEDERAL HOME LN BKS CINS DISC 313384UK3 HAT 03/17/2004 2,400,000,00 FEDERAL HOME LN MTG CORP DISC 313J96PT4 HAT 11/26/2003 3,800,000,00 FEDERAL HOME LN MTG CORP DISC 313396UZ4 HAT 03/31/2004 1 1 000,000.00 FEDERAL NATL MTG ASSN DISC 313588PD1 MAT 11/12/2003 2 1 300,000,00 FEDERAL NATL MTG ASSN DISCOUNT 313588PL3 MAT 11/19/2003 1,200,000,00 US TREASURY BILL 912795PK1 DUE 02/12/2004 DD 08/14/2003 1,400,000.00 WELLS FARGO BK NA INSTL C/D 94975UXB8 1,060\ 10/23/2003 DD 09/23/03 175,658.11 DREYFUS TREASURY CASH MGMT 996085247 TOTAL CASH & CASH EQUIVALENTS FIXED INCOME SECURITIES 1,000,000,00 ASSOCIATES CORP NORTH AMER 04600JKA6 s.000, 04/2012004 DD 04/20/99 YT'M AT BOOK .ooo .ooo .ooo .ooo .ooo .ooo .ooo .ooo .ooo .ooo .000 .ooo .000 CURRENT MOODY MARI<.ET YIELD S-P PRICE .ooo .ooo .000 .ooo .ooo .ooo .ooo .ooo .ooo 1.060 ,798 ,027 S.658 P-1 A-1+ P-1 A-1+ P-1 A-1+ P-1 A-1+ P-1 A-1+ P-1 A-1+ P-1 A-1+ P-1 A-1+ P-1 A-1+ AAA AAA AAl AA- 99 .532 99. 736 99,788 99.462 99.721 99,422 99.468 99. 749 99.516 100.000 100.000 102.515 TOTAL COST/ MARl(ET VALUE 497,660,00 497,660.00 1,496,037.71 1,496,037.71 3,093,442.53 3,093,442.53 994,625.00 994,625.00 2,393,314.67 2,393,314.67 3,778,055.00 3,778,055.00 994,677.08 994,677.08 2,294,216.46 2,294,216.46 1,194,191.67 1,194,191.67 1,400,000.00 1,400,000.00 175,658.11 175,658.11 18,311,878.23 18,311,878.23 1,041,290.00 1,02s,1so.oo I TYPE I TOTAL 2.71 1.33 8.16 3.99 16.89 8.25 5.43 2.65 13.06 6.39 20.63 10.08 5 .43 2,65 12.52 6.12 6.52 3.19 7.64 3. 74 .95 .47 100.00 48.86 5.34 2. 74 YLDANAL YIELD ANALYSIS PAGE I 2 OCSF07511102 2003/09/30 RUN DATE I 10/06/03 DISTRICT: LIQUID OPERATING RUN TIME I 10.31.55 ====================================================================================:=====================================-=~ PAR VALUE YTtl AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL -------------------------------------------------------------------------------------------------- 650,000.00 BELL ATLANTIC-NEW JERSEY INC .ooo 5,789 AA3 101.484 677,046,50 3.44 077858AA6 5,87S1 02/01/2004 DD 02/01/94 A+ 659,646.00 1.76 300,000.00 COLGATE PALMOLIVE MTN TR 00058 ,000 5,23S AAJ 100.671 J08,808.oo 1.57 19416QCK4 5.2701 12/01/2003 DD 11/24/98 AA-302,013.00 .81 l,JS0,000.00 FEDERAL FARM CR BKS CONS SYSTE ,000 5.330 AAA 101.316 1,399,963.50 7.13 31331H6G7 6.401 01/23/2004 DD 01/01/1999 AAA 1,367,760.06 3.65 550,000.00 FEDERAL FARM CR BKS CONS MTN ,000 4.998 AAA 100.032 565,229.50 2,87 31331RC78 5,0001 10/02/2003 DD 10/02/98 AAA 550,178.42 1.47 1,100,000.00 FEDERAL HOME LN HTG CORP DEB .ooo 3,701 AAA 101.323 1,125,905.00 5.81 3134A4PB1 3.7501 04/15/2004 DD 04/15/02 AAA 1,114,558.28 2.97 tx, 0 4,200,000.00 FEDERAL NATL MTG ASSN DEBS ,000 5.052 AAA 101.444 4,350,168.00 22.22 0 ?I" 31359HEM1 5,1251 02/13/2004 DD 02/08/99 AAA 4,260,634.56 11.37 "'d "" 1,000,000.00 GENERAL ELEC CAP MTN ITR 00545 ,000 1.239 AAA 100.062 1,001,0B9.00 5.21 ()'Q ~ 36962GYS7 VAR RT 05/20/2004 DD 05/20/02 AAA 1,000,620.00 2.67 ~ \>l 1,000,000.00 LEHMAN BROS HLDGS INC .ooo 6,453 A2 102.671 1,045,590.00 5.35 524908BZ2 6.6251 04/01/2004 DD 03/26/99 A 1,026,710.00 2. 74 soo,000.00 PAINE WEBBER GROUP INC HTS ,000 6,396 AA2 100,843 519,405.00 2.63 695629CE3 6.4501 12/01/2003 DD 12/01/98 AA+ 504,215.00 1.35 1,000,000.00 US BANCORP MTN ITR 00119 ,000 5.835 AA3 102.828 1,046,310,00 5.36 91159HEY2 6.0001 05/15/2004 DD 05/10/99 A+ 1,02e,2eo.oo 2.74 5,800,ooo.oo US TREASURY BONDS .ooo 11.718 AAA 101,344 6,251,984.38 30.66 912810DGO 11.8751 11/15/2003 DD 10/05/83 AAA 5,877,952.00 15.68 i:,::, 0 ~ ? t YLDANAL OCSF07511102 DISTRICT: LIQUID OPERATING YIELD ANALYSIS 2003/09/30 PAGE RUN DATE RUN TIME 3 10/06/03 I 10.31.55 ========================================================~=======-----=------------------------·---------------== = PAR VALUE SECURITY ID SECURITY DESCRIPTION 4501000.00 WELLS FARGO & CO SUBNT 949740BY9 6,1251 11/01/2003 DD 11/01/93 TOTAL FIXED INCOME SECURITIES TOTAL YTM AT BOOK 1,615 .001 ,003 CURRENT MOODY MARXET YIELD S-P PRICE 6,102 AA2 100,375 A 5,725 2,801 TOTAL COST/ MAIUtET VALUE 467,496.00 451,687.50 19,800,284.88 19,169,404.82 38,112,163,11 37,481,283.05 I TYPE I TOTAL 2.35 1.21 100,00 51.16 100,00 100,00 ---=------ YLDANAL YIELD ANALYSIS PAGE I 4 OCSF07522202 2003/09/30 RUN DATE I 10/06/03 DISTRICT: LONG-TERM OPERATING RUH TIME I 10,31.55 =============================================================================================-------------------------=--==== PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL ------------------------------~------------------------------------------------------------------- CASH & CASH EQUIVALENTS 4,400,000,00 FEDERAL HOME LN BK CONS DISC N ,000 .ooo P-1 99,761 4,389,473.00 4, 74 313384MUO HAT 10/10/2003 A-1+ 4,389,473.00 1.08 12,000,000.00 FEDERAL HOME LN BXS CONS DISC ,000 .ooo P-1 99,747 11,969,666,67 12,93 313384MZ9 MAT 10/15/2003 A-1+ 11,969,666.67 2,94 3,eoo,000.00 FEDERAL HOME LN BK CONS DISC N ,000 .ooo P-1 99. 740 3,790,115,88 4.09 313384NJ4 HAT 10/24/2003 A-1+ 3,790,115.88 .93 2,000,000.00 FEDERAL HOME LN BK CONS DISC N .ooo .ooo P-1 99.433 1,988,663.33 2, 14 313384NY1 HAT 11/07/2003 A-1+ 1,988,663.33 .49 t.tJ 0 3,400,000.00 FEDERAL HOME LN BKS CINS DISC .ooo .ooo P-1 99,460 l,381,623,47 3,65 0 ::,;--313384UK3 MAT 03/17/2004 A-1+ 3,381,623.47 ,Bl "ti IS) 61 700,000,00 FEDERAL HOME LN BXS CONS DISC .ooo ,000 P-1 99,462 6,663,926.08 7,20 (!(I ~ ~ 313384UM9 MAT 03/19/2004 A-1+ 6,663,926.08 1.64 Ul 9,700,000,00 FEDERAL HOME LN MTG CORP DISC ,000 ,000 P-1 99,721 9,672,980,11 10,4S 313396PT4 HAT 11/26/2003 A-1+ 9,672,980,11 2,37 13,700,000,00 FEDERAL NATL MTG ASSN DISCOUNT .ooo .ooo P-1 99. 745 13,665,023,14 14,77 313588MZ5 HAT 10/15/2003 A-1+ 13,665,023,14 3,35 ll,l00,000,00 FEDERAL NATL MTG ASSN DISCOUNT .ooo .ooo P-1 99.733 11,269,873.65 12,18 313588PL3 MAT 11/19/2003 A-1+ 11,269,873,65 2. 77 200,000.00 FEDERAL NATL MTG ASSN DISC .ooo .ooo P-1 99.637 199,274, 00 .21 313588QA6 A-1+ 199,274.00 .OS eoo,000.00 FEDERAL NATL MTG ASSN DISCOUNT .ooo .ooo P-1 99.663 797,301.63 .86 313588QNB HAT 12/15/2003 A-1+ 797,301.63 .20 200,000.00 FEDERAL NATL MTG ASSN DISC NT .ooo ,000 P-1 99.553 199,106.00 .21 31358BTF2 A-1+ 199,106.00 ,OS 9,500,000.00 FEDERAL NATL MTG ASSN DISCOUNT ,000 .ooo P-1 99,553 9,457,535.00 10.22 313588TGO MAT 02/19/2004 A-1+ 9,457,535.00 2,32 soo,000.00 FEDERAL NATL MTG ASSN DISCUNT ,000 .ooo P-1 99.550 497,750.00 ,53 313588TL9 MAT 02/23/2004 A-1+ 497,750,00 ,12 YLDANAL YIELD ANALYSIS PAGE I 5 OCSF07522202 2003/09/30 RUH DATE I 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME I 10.31.55 ===================================================================~====z== ------------------================ PAR VALUE YTH AT CURRENT MOODY MARI<ET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARI<ET VALUE I TOTAL ------------·------·---------------------------------------------------------------·--------- 1,eoo,000.00 FEDERAL NATL MTG ASSN DISCOUNT .ooo .ooo P-1 99.556 1,792,008.00 1.93 313588TH7 HAT 02/24/2004 A-1+ 1,792,008.00 .u 1,eoo,000.00 FEDERAL NATL MTG ASSN DISCOUNT .ooo .ooo P-1 99. 441 1,789,946.75 1,93 313588TN5 HAT 02/25/2004 A-1+ 1,789,946.75 .u 3,000,000.00 FEDERAL NATL MTG ASSN DISC .000 .ooo P-1 99.454 2,983,620.00 3.22 313588UIC9 A-1+ 2,983,620.00 .73 600,000.00 GENERAL ELEC CAP DISC .000 .ooo P-1 99.662 597,974.33 .64 36959.JYCl 11/12/2003 597,974.33 .15 2,eoo,000.00 GENERAL ELEC CAP DISC .000 .ooo P-1 99.658 2,790,420.11 3.01 36959.JZA4 to 12/10/2003 2,790,420.11 .68 0 .ooo 0 4,500,000.00 US TREASURY BILL .ooo P-1 99.516 4,478,218.75 4 .U :,;' 912795PK1 DUE 02/12/2004 DD 08/14/2003 A-1+ 4,478,218.75 1.10 "'O I>) (/(I 143,053.62 DREYFUS TREASURY CASH MGMT .ooo .798 AAA 100.000 143,053.62 .15 (1) .j::,. 996085247 AAA °' 143,053.62 .04 --------------------------------·--------- TOTAL CASH & CASH EQUIVALENTS .ooo .ooo 92,517,553.52 100.00 92,517,553.52 22.72 FIXED INCOME SECURITIES 752,000.00 AIG SUNAHERICA GLOBAL REGS .000 5.325 109.867 826,199.84 .26 U00907AAO 5.8501 08/01/2008 DD 08/08/01 826,199.84 .20 23,000,000.00 COMMIT TO PUR FNMA SF MTG .ooo 4.881 AAA 102.438 23,331,250.00 7.48 01F0504Al 5.0001 10/01/2018 DD 10/01/03 AAA 23,560,625.00 5.78 1,500,000.00 COMMIT TO PUR FNMA SF MTG .ooo 5,814 AAA 103.203 1,534,375.00 .49 OlF0606A8 6.0001 10/01/2033 DD 10/01/03 AAA 1,548,046.80 .38 900,000.00 BEAR STEARNS MTN I TR 00459 .ooo 1.419 A2 100.062 899,406.00 ,28 073929VC4 VAR RT 12/01/2003 DD 09/17/01 A 900,558.00 ,22 1,500,000.00 CIT GROUP INC NEW SR NT .ooo 5,074 A2 108.406 1,527,135.00 ,51 125581ADO 5.5001 11/30/2007 DD 12/02/02 A 1,626,090.00 .40 YLDANAL YIELD ANALYSIS PAGE I 6 OCSF07522202 2003/09/30 RUN DATE I 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME I 10,31.55 ========================================================-==================================================================== PAR VALUE Y'T'H AT CURRENT MOODY MARXET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARXET VALUE I TOTAL -----------------------------------·-----------------_" _____ -··-----·----··---------------------·---- 5,000,000.00 CITIGROUP INC GLOBAL SUB NT .ooo 5.240 AA2 107.343 5,333,600.00 1. 70 172967BP5 5,6251 08/27/2012 DD 08/26/02 A+ 5,367,150.00 1.32 108,193.21 FHLMC GROUP IG4-0353 .ooo 7.327 AAA 102.361 110,931.86 .OJ 3128DBMA2 7,5001 10/01/2004 DD 03/01/99 AAA 110,747.12 .03 1,500,000.00 FEDERAL HOME LN BK CONS BDS .ooo 6.615 AAA 107. 713 7,997,625,00 2,56 3133MAUN7 7,1251 02/15/2005 DD 02/08/00 AAA 0,010,509,50 1.98 86,603.82 FHLMC GROUP 178-6064 .ooo 3.696 AAA 104.062 84,492.85 .02 31348SWZ3 6.3841 01/01/2028 DD 12/01/97 AAA 90,122.06 .02 11,Jso,000.00 FEDERAL NATL MTG ASSN DEBS .ooo 4.845 AAA 108.363 11,521,271.50 3,90 t:c 31359MJX2 5,2501 06/15/2006 DD 06/22/01 0 AAA 12,299,225,47 3,02 0 ~ 897,867.52 FNMA POOL 10254510 ,000 4.871 AAA 102.645 924,803.55 ,29 '"Cl 31371KVB4 5.0001 11/01/2017 DD 10/01/02 AAA 921,611.90 .23 po CIC! (1) 187,647,80 FNMA POOL 10254631 .ooo 4.871 AAA 102.645 193,277,24 .06 .i,.. -.J 31371KY47 5.0001 02/01/2018 DD 01/01/03 AAA 192,610,20 .os 168,398.70 FNMA POOL 10254760 .ooo 4.871 AAA 102.645 173,450.66 .05 31371K5V9 5.0001 06/01/2018 DD 05/01/03 AAA 172,852.05 .04 71,802,84 FNMA POOL 10254866 .ooo 4.871 AAA 102,645 73,956.93 ,02 31371LCB3 5,0001 09/01/2018 DD 08/01/03 AAA 73,701.69 .02 245,061.28 FNMA POOL 10323980 .ooo 5,727 AAA 104.758 255,859.30 .08 31374T2MO 6,0001 04/01/2014 DD 09/01/99 AAA 256,720,83 .06 36,290.11 FNMA POOL 10357328 .ooo 4.877 AAA 102,532 37,378.81 .01 31376J4M8 5,0001 01/01/2018 DD 01/01/03 AAA 37,208.80 .01 84,340,76 FNMA POOL 10456482 .ooo 5.724 AAA 104,820 88,057,02 ,02 31381CCT2 6,0001 02/01/2014 DD 02/01/99 AAA 88,406,25 ,02 241,995.39 FNMA POOL 10509649 .ooo 5,724 AAA 104,820 252,658,31 .00 31383QEWO 6.0001 09/01/2014 DD 09/01/99 AAA 253,660.32 ,06 194,825,10 FNMA POOL 10535451 .ooo 5,727 AAA 104,758 203,409,58 ,06 31384VZQ8 6,0001 06/01/2015 DD 07/01/00 AAA 204,094,51 ,05 4,267,050.99 FNMA POOL 10535672 .ooo 5,727 AAA 104,758 4,455,067.93 1.41 31384WCH1 6.0001 01/01/2016 DD 12/01/00 AAA 4,470,069.17 1.10 YLDANAL YIELD ANALYSIS PAGE : 7 OCSF07522202 2003/09/30 RUN DATE : 10/06/03 DISTRICT! LONG-TERM OPERATING RUH TIME I 10.31.55 ==============================================.============================================~============================----- PAR VALUE YTH AT CURRENT MOODY HARJ<ET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION B•OIOK YIELD S-P PRICE HAUET VALUE I TOTAL -------------------------------------------------------------------------·-----·-·------------------- 1,440,144.82 FNMA POOL 10545296 .000 5.738 AAA 104.570 1,503,601,19 ,47 31385HXZO 6,0001 11/01/2016 DD 10/01/01 AAA 1,505,963,90 .37 119,286 .93 FNMA POOL 10545580 .000 5,734 AAA 104,633 124,543.01 .03 31385JCR7 6,0001 03/01/2017 DD 03/01/02 AAA 124,813,27 .OJ 230,876.56 FNMA POOL 10545998 .ooo 5,823 AAA 103.039 240,111.62 .07 3138SJRT7 6,0001 11/01/2032 DD 10/01/02 AAA 237,892.14 .06 205,828,73 FNMA POOL 10555101 .ooo 5. 738 AAA 104.570 214,898,05 ,06 3138SWU23 6,0001 10/01/2017 DD 11/01/02 AAA 215,235,74 .os 914,332,11 FNMA POOL 10555285 ,000 5,803 AAA 103.395 950,905,40 .30 to 3138SW2S7 6,0001 03/01/2033 DD 02/01/03 AAA 945,369,39 ,23 0 0 403,365,36 FNMA POOL 10555363 .ooo 4,871 AAA 102,645 415,466.32 ,13 :,,;-31385WSY1 5,0001 04/01/2018 DD 03/01/03 AAA 414,032,U ,10 "O Pl (Jq 902,305,29 FNMA POOL 10555528 .ooo 5,803 AAA 103,395 938,397.51 ,29 (1) .p. 31385XD95 6.0001 04/01/2033 DD 05/01/03 AAA 932,934.31 ,23 00 339,493.05 FNMA POOL 10555545 .ooo 4,871 AAA 102.645 349,677, 84 .11 31385XES2 5,0001 06/01/2018 DD 05/01/03 AAA 348,471,05 .09 905,629,54 FNMA POOL 10555640 .ooo 5,803 AAA 103.395 941,854.72 ,29 31385XHR1 6.0001 07/01/2033 DD 06/01/03 AAA 936,371,41 ,23 79,020,96 FNMA POOL 10576386 .ooo s. 768 AAA 104.028 82,502,82 ,02 31386XJ72 6,0001 05/01/2016 DD 05/01/01 AAA 82,203,86 .02 224,094,92 FNMA POOL 10576739 .ooo 5,734 AAA 104,633 233,969,10 .07 31386XV86 6.0001 04/01/2016 DD 04/01/01 AAA 234,476,81 ,06 264,776.77 FNMA POOL 10580888 .ooo 5. 734 AAA 104.633 276,443,49 .oe 313870391 6.0001 05/01/2016 DD 05/01/01 AAA 277,043.37 .07 210,597.71 FNMA POOL 10594002 .ooo S.734 AAA 104.633 219,877.17 .06 31387TJK8 6,0001 07/01/2016 DD 07/01/01 AAA 220,354,30 .05 268,419.45 FNMA POOL 10597376 ,000 5,738 AAA 104.570 280,246,68 .00 31387XT96 6,0001 09/01/2016 DD 08/01/01 AAA 280,687.05 .07 202,673.50 FNMA POOL 10605259 .ooo 5. 738 AAA 104,570 211,603,80 .06 31388HMG1 6,0001 09/01/2016 DD 09/01/01 AAA 211,936.31 .OS YLDANAL YIELD ANALYSIS PAGE : 8 OCSF07522202 2003/09/30 RUH DATE I 10/06/03 DISTRICT! LONG-TERM OPERATING RUH TIME I 10,31.55 ==============-=========================-=2============----======-==========================================================- PAR VALUE YT'H AT CURRENT MOODY MARl(Ef TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BIOOK YIELD S-P PRICE MARKET VALUE I TOTAL ----------------------------------------------------·---------------------------------------------- 151,460,24 FNMA POOL I0608JUi .ooo 5,734 AAA 104.633 158,133.95 .05 31388LZ78 6 ,0001 10/01/2016 DD 09/01/01 AAA 158,477.11 .04 172,684,62 FNMA POOL 10616734 ,000 5. 734 AAA 104.633 180,293.53 .05 31388WEF9 6,0001 12/01/2016 DD 12/01/01 AAA 180,684.77 ,04 216,112,72 FNMA POOL 10630B12 ,000 5,763 AAA 104. 111 225,635.18 ,07 31389NYR2 6.0001 02/01/2017 DD 02/01/02 AAA 2H,997.07 .06 971,978,16 FNMA POOL 10632376 ,000 5,730 AAA 104,720 1,014,805.96 ,32 31389QQ50 6,0001 07/01/2017 DD 07/01/02 AAA 1,011,8s8.S4 ,25 557,031.83 FNMA POOL 10653116 ,000 S.730 AAA 104.720 581,576.05 ,18 to 31390QSD8 6,0001 07/01/2017 DD 07/01/02 AAA 583,325,U .14 0 0 242,834.96 F21MA POOL 10673280 .ooo S.738 AAA 104,570 253,534.87 :>;' .08 '"ti 31391P6R2 6,0001 08/01/2017 DD 11/01/02 AAA 253,933.27 ,06 cfJ (1) 609,214.14 FNMA POOL 10681309 ,000 4.871 AAA 102,645 627,490.56 .u .j>,. 31391Y3S4 5,0001 02/01/2018 DD 02/01/03 AAA 625,324.99 ,15 IO 76,565.99 FNMA POOL 10681334 .ooo 4,871 AAA 102,645 78,862.97 ,02 31391Y4Tl 5,0001 02/01/2018 DD 01/01/03 AAA 78,590.80 ,02 38,763,51 FNMA POOL 10685665 ,ODO 4,871 AAA 102,645 39,926,42 .01 31400EW22 5.0001 02/01/2018 DD 02/01/03 AAA 39,788.62 .01 330,350.03 FNMA POOL 10686318 .ooo 4.871 AAA 102,645 340,260.53 ,10 31400FPB7 5,0001 03/01/2018 DD 03/01/03 AAA 339,086.24 .OB 131,275,19 FNMA POOL 10688739 .ooo 4,871 AAA 102.645 135,213.44 ,04 31400JEL9 5,0001 06/01/2018 DD 06/01/03 AAA 134,746.80 .03 776,638,16 FNMA POOL 10693834 ,000 4,871 AAA 102,645 799,937,30 ,25 31400PY74 5,0001 03/01/2018 DD 03/01/03 AAA 797,176.59 ,20 294,023,47 FNMA POOL 10695852 ,000 4,871 AAA 102,645 302,844.17 ,09 31400SBVO 5.0001 05/01/2018 DD 05/01/03 AAA 301,799.01 ,07 877,339,71 FNMA POOL 10695889 .ooo 4,871 AAA 102,645 903,659.90 ,28 31400SC23 5,0001 05/01/2018 DD 05/01/03 AAA 900,541.22 ,22 28,882,46 FNMA POOL 10697026 .ooo 4,871 AAA 102,645 29,748.94 .oo 31400TLF2 5,0001 05/01/2018 DD 04/01/03 AAA 29,646.27 .01 YLDANAL YIELD ANALYSIS PAGE I 9 OCSF07522202 2003/09/30 RUN DATE : 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME : 10,31.55 == =====--=-_;:--===-==-=========:= _:::;-::::=.---::::: ____________ :::;====-=-====-~-.-=-~-----;: -~------=--=-==-=====----=--=-=:====--·------ PAR VALUE Y'll'M AT CURRENT MOODY HARXET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE HARXET VALUE I TOTAL ------------------------------------------------------------------------------------------------ 138,264.69 FNMA POOL 10698939 ,000 5,728 AAA 104,745 144,356,98 ,04 31400VPY2 6.0001 09/01/2017 DD 03/01/03 AAA 144,825, 78 .04 294,427.33 FNMA POOL 10702210 .ooo 4,875 AAA 102.557 303,260.15 .09 31401ADP9 5,0001 05/01/2018 DD 05/01/03 AAA 301,955.29 .07 84,890.02 FNMA POOL 10703195 ,000 5. 714 AAA 105.008 88,630.49 .02 31401BGC3 6,0001 01/01/2017 DD 04/01/03 AAA 89,141.15 .02 312,665.02 FNMA POOL 10709148 ,000 4,871 AAA 102.645 322,044.97 .10 31401HZH7 5,0001 06/01/2018 DD 06/01/03 AAA 320,933.54 .08 834,646.06 FNMA POOL 10710235 .ooo 4.871 AAA 102.645 859,685.45 .27 31401KBC8 5,0001 06/01/2018 DD 06/01/03 AAA 856,718.53 ,21 to 27,298.34 FNMA POOL 10713344 ,000 4.871 AAA 102.645 28,117,29 .oo 0 31401NP52 5.0001 06/01/2018 DD 06/01/03 AAA 28,020.25 .01 0 :>;' '"'O 2,651,557.74 FNMA POOL 10720369 .ooo 4,875 AAA 102.557 2,731,104.47 .86 J'c; 31401WJNO 5,0001 06/01/2018 DD 06/01/03 AAA 2,719,353.17 .67 n, Vl 0 324,411.47 FNMA POOL 10721629 ,000 4,862 AAA 102.832 334,143.82 .10 31401XVW4 5.0001 07/01/2018 DD 06/01/03 AAA 333,598.90 .08 438,461.74 GNMA POOL 10596612 .ooo 6,177 AAA 105.223 460,179.30 ,14 36200BYH4 6,5001 09/15/2032 DD 09/01/02 AAA 461,361.11 ,11 1,480,019.82 GNMA POOL 10569358 ,000 6.206 AAA 104,735 1,514,707.78 .49 36200QQK3 6,5001 04/15/2032 DD 04/01/02 AAA 1,550,091.77 .38 64,629.32 GNMA POOL 10569685 .000 6,176 AAA 105.254 67,830.49 .02 36200Q2S2 6.5001 02/15/2032 DD 02/01/02 AAA 68,024.89 .02 108,542.02 GNMA POOL 10570019 .ooo 6.177 AAA 105.223 113,918.25 .03 36200RG48 6.5001 07/15/2032 DD 07/01/02 AAA 114,210,80 .03 710,211.24 GNMA POOL 10574323 .ooo 6.176 AAA 105,254 745,388.89 ,23 36200WAY7 6,5001 12/15/2031 DD 12/01/01 AAA 747,525.10 ,18 70,464.87 GNMA POOL 10575364 .ooo 6.176 AAA 105.254 73,955.08 ,02 36200XFD6 6.5001 11/15/2031 DD 11/01/01 AAA 74,167.03 .02 27,102.45 GNMA POOL 10587117 .ooo 6.177 AAA 105.223 28,444.87 .oo 36201HG22 6.5001 06/15/2032 DD 06/01/02 AAA 28,517,92 .01 YLDANAL YIELD ANALYSIS PAGE 10 OCSF07522202 2003/09/30 RUN DATE I 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME I 10,31.55 =========================~=============-====-===-=======~===========================================================~========= PAR VALUE 1'.l'fl AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARXET VALUE I TOTAL --------------------------------------------------------------------------------------------- 80,817,68 GNMA POOL 10587439 .ooo 6,177 AAA 105.223 84,820.68 .02 36201HS45 6.5001 11/15/2032 DD 12/01/02 AAA 85,038.51 .02 18,104,46 GNMA POOL 10421389 .ooo 6.159 AAA 105.535 19,001.20 .oo 36206UC23 6,5001 04/15/2026 DD 04/01/96 AAA 19,106.57 .oo 27,092.30 GNMA POOL 10449851 .ooo 6,202 AAA 104.797 28,434.22 .oo 36208f'WLO 6.5001 01/15/2028 DD 01/01/98 AAA 28,391.85 .01 89,231.28 GNMA POOL 10466845 .ooo 6,163 AAA 105.473 93,651.02 ,02 36209BTA6 6,5001 06/15/2028 DD 06/01/98 AAA 94,114.60 .02 677,509,66 GNMA POOL 10468052 .ooo 6,163 AAA 105.473 711,067.56 ,22 36209C5H4 6,5001 07/15/2028 DD 07/01/98 AAA 714,587,46 .18 to 0 262,214,03 GNMA POOL 10476041 .ooo 6.163 AAA 105.473 274,792,11 .08 0 :,;-' 36209HZE7 6.5001 06/15/2028 DD 06/01/98 AAA 276,564.11 .01 "C I>) (IQ 217,31].68 GNMA POOL 10478626 .ooo 6,168 AAA 105.379 227,737.95 ,07 0 Ut 36209QVT9 6,5001 01/15/2029 DD 01/01/99 AAA 229,002.79 .06 -249,614,15 GNNA POOL 10480598 ,000 6,168 AAA 105,379 261,587.84 .oe 36209S3F6 6.5001 10/15/2028 DD 10/01/98 AAA 263,040.67 .06 558,777,46 GNMA POOL 10485527 .ooo 6,176 AAA 105,254 586,454.41 ,18 36209YLG1 6.5001 06/15/2031 DD 06/01/01 AAA 588,135.12 .14 633,585.27 GNMA POOL 10485610 .000 6 .176 AAA 105.254 664,967.54 .21 36209YN38 6.5001 07/15/2031 DD 07/01/01 AAA 666,873.27 ,16 133,203.96 GNMA POOL 10485682 .ooo 6.176 AAA 105.254 139,801.72 .04 36209YRB6 6.5001 08/15/2031 DD 08/01/01 AAA 140,202.38 .03 140,291,53 GNMA POOL 10485703 .ooo 6.176 AAA 105.254 147,240.35 .04 36209YRY6 6,5001 08/15/2031 DD 08/01/01 AAA 147,662.32 .04 16,446.65 GNMA POOL 10512235 .ooo 6,172 AAA 105. 316 17,261.27 .oo 36211GBC6 6,5001 11/15/2029 DD 11/01/99 AAA 17,321.02 .oo 244,244.12 GNMA POOL 10514326 .000 6.168 AAA 105.379 255,960,20 .08 36211JLF2 6,5001 07/15/2029 DD 07/01/99 AAA 257,381.79 .06 67,280.20 GNMA POOL 10530053 .ooo 6.209 AAA 104.682 70,612.68 .02 36212CZS3 6.5001 04/15/2031 DD 04/01/01 AAA 70,430.04 .02 YLDANAL YIELD ANALYSIS PAGE I 11 OCSF07522202 2003/09/30 RUN DATE I 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME I 10.31.55 =----------------=----=-----====-----------============------·---==============================-=======~================------ PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION B<OOK YIELD S-P PRICE MARKET VALUE I TOTAL -------------------------------------------------------------·--------------~--------·------------------ 69,192,13 GNMA POOL 10530290 .ooo 6,176 AAA 105,254 72,511,20 ,02 36212DC31 6,5001 03/15/2031 DD 04/01/01 AAA 72,827,42 .02 135,383.08 GNMA POOL 10537885 .ooo 6,176 AAA 105,254 142,088.77 ,04 36212MRE1 6,5001 02/15/2031 DD 02/01/01 AAA 142,495.99 ,03 16,205,48 GNMA POOL 10547512 .ooo 6,176 AAA 105.254 17,008,16 .oo 36212YGV9 6,5001 04/15/2031 DD 04/01/01 AAA 17,056.90 .oo 128,829.58 GNMA POOL 10547715 ,000 6,176 AAA 105,254 135,009.37 ,04 36212YN82 6.5001 02/15/2031 DD 02/01/01 AAA 135,598.17 .03 91,658.21 GNMA POOL 10552322 .ooo 6,176 AAA 105.254 96,198.16 ,03 36213ESK3 6.5001 01/15/2032 DD 01/01/02 AAA 96,473.85 .02 c:J 727,214 ,83 GNMA POOL 10552466 ,000 6,206 AAA 104,735 763,234.69 .24 0 0 36213EW36 6,5001 03/15/2032 DD 03/01/02 AAA 761,645.02 ,19 po,;- "O 555,614.68 GNMA POOL 10552659 ,000 6,177 105.223 I') AAA 583,134,96 ,18 {)Q 36213E5U6 6.5001 07/15/2032 DD 07/01/02 AAA 584,632.55 .14 (1) VI N 569,397,17 GNMA POOL 10561017 .ooo 6,176 AAA 105.254 597,600,13 .19 36213QG29 6.5001 07/15/2031 DD 07/01/01 AAA 599,312.78 ,15 306,886.75 GNMA II POOL 10080395 .ooo 3,447 AAA 101. 524 304,105.59 .09 36225CNM4 VAR RT 04/20/2030 DD 04/01/00 AAA 311,562,32 .08 2,778,689.78 GNMA II POOL t080408X ,000 3,449 AAA 101,469 2,750,468.71 .89 36225CN28 6,5001 05/20/2030 DD 05/01/00 AAA 2,819,515.68 .69 3,000,000.00 GTE NORTH INC DEB SER A .ooo 5,920 Al 101.359 3,063,750.00 ,96 362337AD9 6.0001 01/15/2004 DD 01/15/94 A+ 3,040,770.00 .75 5,ooo,ooo.oo GENERAL ELEC CAP MTN fTR 00575 .ooo 5,188 AAA 105.046 5,203,500.00 1.66 36962GZY3 5,4501 01/15/2013 DD 12/06/02 AAA 5,252,300.00 1.29 3,000,000.00 GENERAL MTRS ACCEP CORP SR NT .000 5,793 A3 105.734 3,064,350.00 1.00 370425SD3 6,1251 08/28/2007 DD 08/29/02 BBB 3,172,020.00 . 78 3,000,000.00 GOLDMAN SACHS GROUP INC SR NT ,000 3,987 AA3 103.453 3,030,030.00 .98 38141GCS1 4.1251 01/15/2008 DD 01/13/03 A+ 3,103,590.00 .76 1,635,000.00 HOUSEHOLD FIN CORP NT .ooo 5,734 Al 111.187 1,772,820.00 .57 441812JW5 6.3751 10/15/2011 DD 10/23/01 A 1,817,907.45 .45 YLDANAL YIELD ANALYSIS PAGE : 12 OCSF07S22202 2003/09/30 RUN DATE I 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME I 10.31.55 -------------------------------------------------------------------======---=--============================================== PAR VALUE tTlt AT CURRENT MOODY HARl(ET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARICET VALUE I TOTAL ----------------------------------------------·------------------------------------·--------------------- 3,000,000.00 JP HORGAN CHASE & CO SUB NT ,000 S.383 A2 106,812 3,127,260.00 1.01 46625HAT7 5.7501 01/02/2013 DD 11/25/02 A 3,204,360.00 .79 3,200,000.00 MORGAN STANLEY NT ,000 3,592 AA3 100.921 3,195,648,00 1.02 617446HW2 3.6251 04/01/2008 DD 03/06/03 A+ 3,229,472,00 .79 1,000,000.00 NATIONAL RURAL UTILS COOP FIN ,ODO 6 .183 A2 117,265 3,465,480.00 1.11 637432CU7 7,2501 03/01/2012 DD 03/07/02 A 3,517,950.00 ,86 s,000,000.00 PHILIP MORRIS COS INC NTS .ooo 7.336 BAA2 102,234 5,263,000.00 1.62 718154CH8 7.5001 04/01/2004 DD 04/01/97 BBB 5,111,100.00 1.25 3,497,276.28 SBA GTD DEV PARTN 2001-20C 1 .ooo 5.783 AAA 109.640 3,497,276.28 1.21 83162CLJO 6,3401 03/01/2021 AAA 3,834,413,71 ,94 to 0 2,504,229.76 SBA GTD PARTN CTFS SBIC-PS 01 .ooo 6,116 AAA 108.565 0 2,504,229,76 .86 ~ 831641DD4 6.6401 02/10/2011 DD 02/21/01 NR 2,718, 717,04 .67 'ti ,:,., (1q 1,600,000.00 UNITED AIRLS PASSTHRU 01-1 C ,000 44.793 CA 15.250 1,600,000.00 .07 (1) VI 909317BC2 6.8311 03/01/2010 DD 08/22/01 A-244,000.00 ,06 \.;J 20,000,000.00 US TREASURY NOTES ,000 5,510 AAA 113,438 22,620,312,50 1.20 9128272JO 06.2501 02/15/2007 DD 02/15/97 AAA 22,687,500.00 5.57 3,414,810.00 US TREASURY INFLATION INDEX NT .ooo 3.228 AAA 112,281 3,725,779.05 1.21 9128273T7 3.6251 01/15/2008 DD 01/15/98 AAA 3,834,191.35 .94 14,576,900,00 US TREASURY INFLATION INDEX NT ,000 3,391 AAA 114. 281 16,209,968.79 5.28 9128274Y5 3.8751 01/15/2009 DD 01/15/99 AAA 16,658,699.97 4.09 57,100,000.00 US TREASURY NOTES ,000 5.283 AAA 108,844 62,782,901,47 19. 73 9128276N7 05.7501 11/15/2005 DD 11/15/00 AAA 62,149,924,00 15.25 12,000,000.00 US TREASURY NT .ooo 3,183 AAA 102.120 11,870,156.25 3.89 912828BG4 3,2501 08/15/2008 DD 08/15/03 AAA 12,254,400.00 3.01 3,000,000.00 VERIZON GLOBAL FDG CORP GLOBAL ,000 6,254 A2 117,921 3,530,490,00 1.12 92344GAT3 7,3751 09/01/2012 DD 08/26/02 A+ 3,537,630.00 .87 3,500,ooo.oo VIRGINIA ELEC & PWR 01 SER A .ooo 5.304 A3 108.406 3,487,680.00 1.20 927804ENO 5.7501 03/31/2006 DD 03/27/01 BBB+ 3,794,210.00 .93 16,249,520.00 US TREASURY INFLATION INDEX NT 3 .817 3,068 AAA 110.000 14,322,493, 87 5.67 9128272M3 3.3751 01/15/2007 DD 01/15/97 AAA 17,874,472.00 4.39 YLDANAL YIELD ANALYSIS PAGE I 13 OCSF07522202 2003/09/30 RUN DATE I 10/06/03 DISTRICT: LONG-TERM OPERATING RUH TIME I 10.31.55 :::::::·-·-==:-.=-==-==.:=-:::-=::=-=-=·====-=-=,::::=:==-=-=~==---· .......... Q __ --:::::11'==:===========--=-===== PAR VALUE Y'l'H AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARltET VALUE I TOTAL ----------------------------------------------------------------·---------------- 15,500,000.00 FEDERAL NATL MTG ASSN DEBS 5,. 967 6.602 AAA 107.918 16,154,UO,OO 5,31 31359MFH1 7,1251 02/15/2005 DD 02/14/00 AAA 16,727,317,90 4,11 1,198,327.69 FHLMC MULTICLASS MTG SER El A 6-. 316 3.832 AAA 104,043 1,199,604.37 .39 3133TCE95 VAR RT 08/15/2032 DD 12/01/97 AAA 1,246,776.08 .31 833,712.13 GNMA GTD REMIC TR 2000-9 FH 6-. 320 1.610 AAA 100.652 833,712.13 ,26 3837H4NX9 VAR RT 02/16/2030 AAA 839,147.93 ,21 9,534.53 GNMA POOL f0500917 6,. 389 5,757 AAA 104,223 9,050,35 .oo 36210SPAO 6,0001 04/15/2029 DD 04/01/99 AAA 9,937,14 .oo 40,584.40 GNMA POOL f0506636 6,. 389 5,757 AAA 104.223 38,523.47 .01 36210YY90 6,0001 04/15/2029 DD 04/01/99 AAA 42,298,14 .01 t:c 407,572.69 POOL 10503388 6,. 389 0 GNMA 5.753 AAA 104,285 386,875.64 .13 0 36210VF55 6.0001 03/15/2029 DD 03/01/99 AAA 425,037.83 .10 ~ '"Cl I'> 12,734.52 GNMA POOL f0499153 6-. 389 5,753 AAA 104.285 12,087.Bt .oo o-ci Cl) 36210QQE5 6.0001 02/15/2029 DD 02/01/99 AAA 13,280.21 .oo UI .j::,. 474,521.43 GNMA POOL 10496461 6 .390 5,753 AAA 104,285 450,424,63 ,15 36210MQN4 6.0001 01/15/2029 DD 01/01/99 AAA 494,855.43 .12 127,477.80 GNMA POOL 10491103 6 .390 5,753 AAA 104,285 121,004.33 .04 36210FRY4 6.0001 01/15/2029 DD 01/01/99 AAA 132,940.43 .03 13,369.44 GNMA POOL 10486720 6. 390 5,753 AAA 104.285 12,690.53 .oo 36210AVM6 6.0001 12/15/2028 DD 12/01/98 AAA 13,942.34 .oo 27,232.78 GNMA POOL 10497343 6 .390 5.753 AAA 104,285 25,849,87 .oo 36210NP45 6,0001 12/15/2028 DD 12/01/98 AAA 28,399.75 .01 18,066.59 GNMA POOL 10469688 6. 391 5,753 AAA 104,285 17,149,14 ,00 36209EXR8 6,0001 11/15/2028 DD 11/01/98 AAA 18,840.77 .oo 22,978.80 GNMA POOL 10467279 6 .391 5,753 AAA 104,285 21,811.91 .oo 36209CCQ7 6,0001 10/15/2028 DD 10/01/98 AAA 23,963.48 .01 42,651.16 GNMA POOL 10457814 6 ,391 5.753 AAA 104,285 40,485.27 .01 36208QSB3 6,0001 10/15/2028 DD 10/01/98 AAA 44,478,83 .01 456,573.97 GNMA POOL 10467286 6 ,391 5,753 AAA 104,285 433,388.57 ,15 36209CCX2 6.0001 10/15/2028 DD 10/01/98 AAA 476,138.90 .12 YLDANAL YIELD ANALYSIS PAGE : 14 OCSF07522202 2003/09/30 RUH DATE I 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME I 10.31.55 --------------------=====-----===----------=============----=--=====-===============================-=======--======--=------ PAR VALUE Y'I'III AT CURRENT MOODY MARlCET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOJ< YIELD S-P PRICE MARllT VALUE I TOTAL -------------------------------------------------------------------------------------------------- 569,849.09 GNMA POOL 10465555 6 .392 5.753 AAA 104.285 540,911.46 .18 36209AE48 6.0001 09/15/2028 DD 09/01/98 AAA 594,268.04 .15 15,410.30 GHMA POOL 10483452 6.3'2 5.753 AAA 104.285 14,627.75 .oo 36209WBV3 6.0001 09/15/2028 DD 09/01/98 AAA 16,070.66 .oo 507,061.96 GNMA POOL f0465546 I.. 39 2 5.753 AAA 104.285 481,312.72 .16 36209AET3 6,0001 08/15/2028 DD 08/01/98 AAA 528,790.38 .13 443,140.07 GNMA POOL 10468339 6. 39 2 5,753 AAA 104,285 420,636.88 ,14 36209DHOO 6.0001 08/15/2028 DD 08/01/98 AAA 462,129.33 .11 29,506.10 GNMA POOL 10438057 6.Hl 5,753 AAA 104,285 28,007,76 .oo 36207PTN9 6,0001 05/15/2028 DD 05/01/98 AAA 30,770,48 ,01 to 0 23,429.40 GNMA POOL 10468330 I, • 39 3 5.753 AAA 104.285 22,239.62 .oo 0 ~ 36209DHF4 6.0001 05/15/2028 DD 05/01/98 AAA 24,433.39 .01 ""1::1 I» 2,972,208,22 FHLMC MULTICLASS CTF SER 1620Z 6.499 5.636 AAA 106.458 2,816,068,28 ()Cl 1.00 (1) 3133Tl7A4 6.0001 11/15/2023 DD 11/01/93 AAA 3,164,153.43 .78 Ul Ul 370,815,57 GNMA II POOL 1080088M 6. 705 4,292 AAA 101.926 378,927.17 .12 36225CC20 7.3751 06/20/2027 DD 06/01/97 AAA 377,958,22 .09 2,000,000.00 MARSH 5 MCLENNAN COS INC SR NT 6. 717 6,393 A2 103,625 1,992,280.00 .65 571748AB8 6,6251 06/15/2004 DD 06/14/99 AA-2,012,500.00 ,51 3,000,000.00 FORD MTR CR CO GLOBAL LANDMARK 6. 739 6,478 A3 103,421 2,995,080.00 .98 345397SJ3 6.7001 07/16/2004 DD 07/16/99 BBB 3,102,630.00 .76 2,500,000.00 COUNTRYWIDE HOME LHS INC HT 6 .866 6.602 A3 103.750 2,498,400.00 .82 22237UAB8 6.8501 06/15/2004 DD 06/24/99 A 2,593,750.00 .64 262,485.05 GNMA II POOL f0080023 6 .992 5,469 AAA 102.860 266,832.46 .00 36225CAZ9 VAR RT 12/20/2026 DD 12/01/96 AAA 269,992.52 .07 2,100,000.00 FEDERAL NATL MTG ASSN DEBS 7 ,113 5,687 AAA 116,489 2,030,133.00 ,77 31359MEY5 6,6251 09/15/2009 DD 09/01/99 AAA 2,446,261.23 .60 1,000,000.00 FORD MOTOR CR CO NT 7 ,582 6,412 A3 105.265 965,170.00 .33 345397GV9 6,7501 05/15/2005 DD 05/24/93 BBB 1,052,650.00 .26 948,212.53 WMP/HUNTOOH PAIGE I000-11150 7 .684 7.161 AAA 104,741 927,618.55 .31 302998GE3 7,5001 12/01/2030 DD 10/21/99 AAA 993,163.68 .24 to 0 ~ z (1) Ul 0\ YLDANAL OCSF07522202 DISTRICT: LONG-TERM OPERATING YIELD ANALYSIS 2003/09/30 PAGE RUH DATE RUH TIME 15 10/06/03 I 10.31.55 =======================================================:===================================================================== PAR VALUE SECURITY ID SECURITY DESCRIPTION l,0001000.00 PACIFICORP SECD MTN ITR 00115 69512EEU5 7.3001 10/22/2004 DD 10/22/92 1,600,000.00 ALLSTATE CORP SR NT 020002AL5 7.8751 05/01/2005 DD 05/01/00 TOTAL FIXED INCOME SECURITIES TOTAL YT'M AT BOOK 7. 709 7 .967 --------• 381 .357 CURRENT MOODY HARJ(ET YIELD S-P PRICE 6.902 Al 105.765 A 7,183 Al 109.640 A+ ------- 5.168 4.846 TOTAL COST/ MARKET VALUE 2,950,530,00 l, 172,950.00 1,594,032.00 1,754,240.00 307,357,749.31 314,921,684.11 399,875,302,83 407,439,237.63 I TYPE I TOTAL 1.00 .78 .55 ,43 100.00 77.28 100.00 100.00 Balance Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund September 30, 2003 Par Value Book VaJue Market Value September 1, 2003 $33,946,098 $33,946,098 $33,946,098 Deposits: 9/19/2003 12,600,000 12,600,000 12,600,000 Withdrawals: 9/3/2003 {300,000) (300,000) (300,000) 9/10/2003 (4,300,000) (4,300,000) (4,300,000) 9/17/2003 {2,000,000) (2,000,000) (2,000,000) 9/24/2003 (5,700,000) (5,700,000) {5,700,000) Total Withdrawls (12,300,000) (12,300,000} (12,300,000) Balance September 30, 2003 $34,246,098 $34,246,098 $34,246,098 Book Page 57 Rate Yield 1.632 1.632 1.632 1.632 1.632 1.632 1.632 1.632 1.632 1.632 1.632 1.632 1.632 1.632 1.632 1.632 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Michael D. White, Controller SUBJECT: FINANCIAL REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2003 GENERAL MANAGER'S RECOMMENDATION Meeting Date 11/12/03 Item Number FAHR03-92 Receive and file the FY 2003-04 Financial Report for the First Quarter ended September 30, 2003. SUMMARY To Bel. of Dir. 11/19/03 Item Number Attached in a separately bound document is the District's First Quarter Financial Report for the period ended September 30, 2003. This report is a consolidation of the financial accomplishments of the District through the through the first quarter of the FY 2002-03. Contained within the First Quarter Financial Report are budget summary reviews of the Joint Operating & Working Capital Funds, the Capital Improvement Program, the Revenue Areas, and the self-insurance funds. As indicated within the Overview Section of this report, 24.4 percent, or $18.81 million of the FY 2003-04 net joint operating budget of $77.0 million has been expended. Net cost has increased $4.21 million, or 28.9 percent in comparison with the same period last year primarily due to the increased level of wastewater treatment with full disinfection. The total cost per million gallons at September 30, 2003 is $823.82 based on flows of 22.83 billion gallons, or 248.17 million gallons per day. This is $17.81, or 2.1 percent below the budgeted cost per million gallons of $841.63. This shortfall is primarily due to expenditures being lower than budget by 2.3 percent, or $0.44 million. This expenditure shortfall is somewhat offset by the fact that flows are 0. 7 percent lower than the budget estimate of 250 million gallons per day. PROJECT/CONTRACT COST SUMMARY N/A G:\wp.dta\agenda\FAHRIFAHR2003\ 1103\03-92.Financial Report.doc Revised: 8/20/98 BookPage58 Page 1 BUDGET IMPACT D This item has been budgeted. D This item has been budgeted, but there are insufficient funds. 0 This item has not been budgeted. ~ Not applicable (information item) ADDITIONAL INFORMATION None. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. FY 2003-04 Financial Report for the Quarter Ended September 30, 2003. G:\wp.dta\agenda\FAHR\FAH R2003\ 1103\03-92.Financial Report.doc Revised: 8120198 BookPage59 Page 2 FAHR COMMITTEE Meeting Date To Bet. of Dir. 11/12/03 11/19/03 AGENDA REPORT Item Number Item Number FAHR03-93 Orange County Sanitation District FROM: Lisa Tomko, Director of Human Resources ORIGINATOR: James Matte, Safety and Health Supervisor SUBJECT: Safety Policy, Exposure Control Plan for Bloodborne Pathogens Program Policy GENERAL MANAGER1S RECOMMENDATION Approve SAFETY-POL-113, Exposure Control Plan for Bloodborne Pathogens Program as provided for in Resolution No. OCSD 02-5, regarding the District's Exposure Control Plan for Bloodborne Pathogens Program. SUMMARY The District is implementing a written policy to adopt Cal-OSHA requirements for a written exposure control plan for bloodborne pathogens as found in Title 8 of the California Code of Regulations, section 5193. These regulations require a written plan if employees are exposed to blood or body fluids. The District has developed this plan to ensure members of the Medical Unit are adequately protected from these materials. The document presented for your review and adoption represents the Districts written Exposure Control Plan for Bloodborne Pathogens Program that conforms to the elements defined in the California Department of Toxics Substances Control Regulations, Title 22 of the California Code of Regulations. PROJECT/CONTRACT COST SUMMARY Not Applicable BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. ~ Not applicable (information item) ADDITIONAL INFORMATION Policy required under the Cal-OSHA Regulations, found in Title 8 of the California Code of Regulations, section 5193. Book Page 60 ALTERNATIVES Not Applicable CEQA FINDINGS Not Applicable ATTACHMENTS Attachment 1-Exposure Control Plan for Bloodborne Pathogens Program (SAFETY- POL-113) G:\wp.dta\agenda\FAHRIFAHR2003\1103\03·93. draft SAFETY-POL-113.doc Revised: 8/20/01 Book Page 61 Page2 ORANGE COUNTY SANITATION DISTRICT Safety and Health Division SAFETY-POL-113 Exposure Control Plan for Bloodborne Pathogens Program APPROVALS Approved by: ___________________ Date: ___ _ Director of Human Resources Approved by: ___________________ Date: ___ _ Manager, Human Resources Approved by: ___________________ Date: ___ _ Safety and Health Supervisor PROCEDURE REVISION HISTORY Rev. Date Approval This document is controlled when viewed online. When downloaded and printed, this document becomes UNCONTROLLED, and users should check the Safety and Health public folder to ensure that they have the latest version. Book Page 62 Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 Contents 1 . Purpose ............................................................................................... 3 2. Definitions ..................................................................................................................................................................................... 3 3. Exposure Determination .................................................................... 4 4. General Methods of Compliance ....................................................... 5 5. Hepatitis B Vaccine ............................................................................. 7 6. Post Exposure Monitoring and Follow Up ........................................ 8 7. Review of Exposure Incidents ......................................................... 1 O 8. Training and Communication .......................................................... 11 9. Medical Records ........................................................................... ,. .... 12 10. Program Administration and Evaluation ......................................... 13 11 . References ........................................................................................ 14 12. Attachments ...................................................................................... 14 Book Page 63 Number: SAFETY-POL-113 ~ Orange County Sanitation District Revision Number: 0 Exposure Control Plan for Bloodborne Date: November 19, 2003 Pathogens Program Approved by: Lisa Tomko 1. Purpose 2. Definitions Blood Bloodborne Pathogens Contaminated Decontamination Exposure Incident Rev. 0 Date 11/19/03 In accordance with the Cal-OSHA Bloodborne Pathogens standard 8 CCR 5193, the Orange County Sanitation District (district) has developed the following exposure control plan to eliminate or minimize employee occupational exposure to blood or other potentially infectious materials as detailed in the Bloodborne Pathogens standard. This Plan applies to employees who have been designated part of the Medical Unit. Human blood, human blood components, and products made from human blood. Pathogenic microorganisms that are present in human blood and can cause disease in humans. These pathogens include, but are not limited to, hepatitis B virus (HBV), hepatitis C virus (HCV) and human immunodeficiency virus (HIV). The presence or the reasonably anticipated presence of blood or other potentially infectious materials on a surface or in or on an item. The use of physical or chemical means to remove, inactivate, or destroy bloodborne pathogens on a surface or item to the point where they are no longer capable of transmitting infectious particles and the surface or item is rendered safe for handling, use, or disposal A specific eye, mouth, other mucous membrane, non-intact skin, or parenteral contact with blood or other potentially infectious materials that results from the performance of an employee's duties. Hard Copy Is Uncontrolled 3 of 15 g:\wp.dta\agenda\fahr\fahr2003\ 1103\03-93. 1.doc Book Page 64 Exposure Control Plan for Bloodborne Pathogens SAFETV-POL-113 Hand washing Facility Occupational Exposure Other Potentially Infected Materials (OPIM) Parenteral Contact Sharp Source Individual Universal Precautions Work Practice Controls A facility providing an adequate supply of running potable water, soap and single use towels or hot air drying machines. Reasonably anticipated skin, eye, mucous membrane, or parenteral contact with blood or other potentially infectious materials that may result from the performance of an employee's duties. The following human body fluids: semen, vaginal secretions, cerebrospinal fluid, synovial fluid, pleural fluid, pericardia! fluid, peritoneal fluid, amniotic fluid, saliva in dental procedures, any other body fluid that is visibly contaminated with blood such as saliva or vomitus, and all body fluids in situations where it is difficult or impossible to differentiate between body fluids such as emergency response. Piercing mucous membranes or the skin barrier through such events as needlesticks, human bites, cuts, and abrasions. Any object used or encountered in the industries covered by subsection (a) that can be reasonably anticipated to penetrate the skin or any other part of the body, and to result in an exposure incident, including, but not limited to, needle devices, scalpels, lancets, broken glass, broken capillary tubes, exposed ends of dental wires and dental knives, drills and burs. Any individual, living or dead, whose blood or OPIM may be a source of occupational exposure to the employee. Examples include, but are not limited to, hospital and clinical patients; clients in institutions for the developmentally disabled; trauma victims; clients of drug and alcohol treatment facilities; residents of hospices and nursing homes; human remains; and individuals who donate or sell blood or blood components. An approach to infection control. According to the concept of Universal Precautions, all human blood and certain human body fluids are treated as if known to be infectious for HIV, HBV, HCV, and other bloodborne pathogens. Controls that reduce the likelihood of exposure by defining the manner in which a task is performed. 3. Exposure Determination Cal-OSHA regulations (8 CCR 5193(f)) require that "employers Book Page 65 Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 make available the hepatitis B vaccine and vaccination series to all employees who have occupational exposure, and post- exposure evaluation and follow-up for bloodborne pathogens exposure to all employees who have had an exposure incident." Cal OSHA also exempts "Designated first aid providers who have occupational exposure if the following conditions exist: 1. The primary job assignment of such designated first aid providers is not the rendering of first aid. 2. Any first aid rendered by such persons is rendered only as a collateral duty responding solely to injuries resulting from workplace incidents, generally at the location where the incident occurred." In light of this requirement and exemption, the District is designating the following group as having an occupational exposure to bloodborne pathogens. 1 . Members of the District's Medical Unit. 4. General Methods of Compliance 1. Universal precautions will be observed at the district in order to prevent contact with blood or other potentially infectious materials. A. This means that all blood or OPIM will be considered infectious regardless of the perceived status of the source individual. 2. The Safety and Health Division in coordination with the Medical Unit conducts ongoing evaluation of tasks and medical devices that carry a risk of exposure and implements safer medical devices whenever feasible. 3. The following work rules apply where there is a potential for contact with blood or OPIM: A. Hand and Body Washing (1) Hand washing facilities are available to employees who are exposed to blood or other potentially infectious materials. (2) Employees shall wash hands after removal of Book Page 66 Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 personal protective gloves and whenever there is a likelihood of contamination. In addition, any contaminated skin area will be washed as soon as possible. (3) When hand washing facilities are not readily available, the use of waterless hand washing products is permitted as an interim means of washing the hands or other parts of the body after contamination with blood or OPIM. (4) If blood or other potentially infectious material contacts mucous membranes, those areas shall be washed or flushed with water as appropriate as soon as possible following contact. B. Other Work Practices (1) Eating, drinking, smoking, applying cosmetics or lip balm, and handling contact lenses are prohibited in work areas where there is a reasonable likelihood of occupational exposure. (2) Food and drink must not be kept in refrigerators, freezers, shelves, and cabinets or on countertops or bench tops where blood or other potentially infectious materials are present. (3) Mouth pipetting/suctioning of blood or other potentially infectious materials is prohibited. C. Personal Protective Equipment (PPE) (1) All PPE used at this facility will be provided without cost to employees. (2) PPE will be chosen based on the anticipated exposure to blood or other potentially infectious materials. a. The PPE will be considered appropriate only if it does not permit blood or other potentially infectious materials to pass through or reach the employees' clothing, skin, eyes, mouth, or other mucous membranes under normal conditions of use and for the duration of time, which the protective equipment will be used. Book Page 67 Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 (3) Employees will receive training on the appropriate use of PPE provided for specific tasks. (4) The personal protective equipment listed in attachment 1 is provided for workers. (5) If required PPE is not available, contact the Safety and Health Division who will insure that supplies are replenished. D. Housekeeping Contaminated surfaces must be decontaminated by the Medical Unit with an approved disinfectant as soon as possible after contamination with blood or OPIM. 5. Hepatitis B Vacc in e 1 . Hepatitis B vaccine shall be offered to all members of the Medical Unit, at no cost to the employee unless: A. the employee has previously received the series B. antibody testing reveals that the employee is immune C. medical reasons prevent taking the vaccination; or D. the employee chooses not to participate 2. Hepatitis B vaccine shall be offered to all employees at no cost who have had an exposure to blood or OPIM unless: A. The employee has previously received the series B. Antibody testing reveals that the employee is immune C. Medical reasons prevent taking the vaccination; or D. The employee chooses not to participate 3. Employees will be provided with information on Hepatitis B vaccinations addressing its safety, benefits, efficacy, methods of administration and availability. 4. All occupationally exposed employees are strongly encouraged to receive the Hepatitis B vaccination series and post-vaccination antibody testing. Book Page 68 Exposure Control Plan for Bloodborne Pathogens SAFETV-POL-113 A. If an employee chooses to decline HB vaccination, the employee must sign a copy of the declination statement. (1) The copy will be kept in the employee's confidential medical record. (2) Employees who decline may request and obtain the vaccination at a later date at no cost. 5. The district shall notify all employees who receive hepatitis B vaccine of the location of the clinic providing the vaccine. A. Employees shall receive vaccine during normal working hours or be compensated during non-working hours. 6. Post Exposure Monitoring and Follow Up 1 . Evaluation and Management of Exposure Incidents A. Post-Exposure Management (1) Wounds and skin sites that have been in contact with blood or OPIM should be washed with soap and water; mucous membranes should be flushed with water. (2) Immediately report all exposure incidents to the employee's supervisor or the Safety and Health Division. (3) The Safety and Health Division will provide a doctor for a confidential medical evaluation to all exposed employees. a. It is important that employees receive a prompt medical evaluation because HBIG, hepatitis B vaccine, and HIV post exposure prophylaxis (PEP) are most likely to be effective if administered as soon after exposure as possible. (4) If the employee does not give consent for HIV serological testing during collection of blood for baseline testing, preserve the baseline blood Book Page 69 Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 sample for at least 90 days. a. If the exposed employee elects to have the baseline sample tested during this waiting period, perform testing as soon as feasible (5) The person (if known) whose blood or body fluid is the source of an exposure will be tested for HBV, HCV, and HIV infection as soon as feasible. a. When the source is already known to be infected with HBV, HCV, or HIV then testing need not be repeated. (6) Information from the medical record at the time of the exposure (e.g., laboratory test results, admitting diagnosis, or previous medical history) or the source person, will be collected to help confirm or exclude bloodborne infection. (7) HBV, HCV, and/or HIV testing shall be performed if the infection status of the source person is unknown. (8) Results of source testing shall be provided to the employee, and the employee shall be informed of all applicable laws and regulations concerning disclosure of the identity and infectious status of the source. (9) The health department will be consulted in the event that consent for source testing cannot be obtained (Orange County Health Care Agency). B. Health Care Professional Follow-Up 4. The Safety and Health Division will ensure that health care professionals responsible for employee's hepatitis B vaccination and post-exposure evaluation and follow-up are given a copy of Cal-OSHA's bloodborne pathogens standard. 5. The Safety and Health Division will ensure that the health care professional evaluating an employee after an exposure incident receives the following: A. A description of the employee's job duties relevant to Book Page 70 Exposure Control Plan for Bloodborne Pathogens SAFETV-POL-113 the exposure incident B. Route(s) of exposure C. Circumstances of exposure D. If possible, results of the source individual's blood test E. Relevant employee medical records, including vaccination status 2. The Safety and Health Division will provide the employee with a copy of the evaluating health care professional's written opinion within 15 days after completion of the evaluation. 3. The written opinion for post-exposure evaluation and follow- up will be limited to whether or not the employee has been informed of the results of the health evaluation and of any health conditions which may require further evaluation and treatment. A. All other diagnoses must remain confidential and are not to be included in the written report to the district. 7. Review of Expos ure In cidents 1. The employee's supervisor and Safety and Health Division shall review the circumstances of all exposure incidents which will be reviewed to determine: A. Why the exposure incident occurred; B. Type and brand of device involved; C. If procedures were being followed; and D. If procedures, protocols, and/or training need to be revised. 2. If it is determined that revisions need to be made, the Safety and Health Division will ensure that appropriate changes are made to this exposure control plan. 3. Documentation of this evaluation should accompany the exposure report. Book Page 71 Exposure Control Plan for Bloodborne Pathogens SAFETV-POL-113 8. Training and Communication 1 . All employees who have occupational exposure to bloodborne pathogens will receive training at the time of initial assignment and at least annually thereafter. 2. The Safety and Health Division shall be responsible for conducting training. 3. Training will include: A. Information on the epidemiology, symptoms, and transmission of bloodborne pathogen diseases. B. A copy and explanation of the standard. C. An explanation of the District's exposure control plan and how to obtain a copy. D. An explanation of methods to recognize tasks and other activities that may involve exposure to blood and OPIM, including what constitutes an exposure incident. E. An explanation of the use and limitations of engineering controls, work practices, and PPE. F. An explanation of the types, uses, location, removal, handling, decontamination, and disposal of PPE. G. An explanation of the basis for PPE selection. H. Information on the hepatitis B vaccine, including information on its efficacy, safety, method of administration, the benefits of being vaccinated, and that the vaccine will be offered free of charge. I. Information on the appropriate actions to take and persons to contact in an emergency involving blood or OPIM. J. An explanation of the procedure to follow if an exposure incident occurs, including the method of reporting the incident and the medical follow-up that will be made available. K. Information on the post-exposure evaluation and follow- up that the employer is required to provide for the Book Page 72 Exposure Control Plan for Bloodborne Pathogens SAFETV-POL-113 employee following an exposure incident. L. An explanation of the signs and labels and/or color coding required by the standard and used at the District. M. An opportunity for interactive questions and answers with the person conducting the training session. 4. Training records will be completed for each employee upon completion of training. These documents will be kept with the employee's records and will include: A. Dates of the training sessions. B. Contents or a summary of the training sessions. C. Names and qualifications of persons conducting the training sessions. D. Names and job titles of all persons attending the training sessions. 5. Training records will be maintained for a minimum of three (3) years from the date on which the training occurred. 6. Employee training records will be provided upon request to the employee or the employee's authorized representative within 15 working days. 9. Med ical Records 1. Medical Records A. The Safety and Health Division is responsible for maintenance of the required medical records. (1) Records are maintained in the Plant No. 1 Safety and Health Division Office. B. Medical records are maintained for each employee with occupational exposure in compliance with 8 CCR 3204 and SAFETY-POL-405, "Access to Employee Exposure and Medical Records" and will include: (1) The name and social security number of the employee Book Page 73 Exposure Control Plan for Bloodborne Pathogens SAFETV-POL-113 (2) A copy of the employee's hepatitis B vaccinations and any medical records relative to the employee's ability to receive vaccination (3) A copy of all results of examinations, medical testing, and follow-up procedures as required by the bloodborne pathogens standard (4) A copy of all health care professional's written opinion(s) as required by the bloodborne pathogens standard C. All employee medical records will be kept confidential and will not be disclosed or reported without the employee's express written consent to any person within or outside the workplace except as required by the standard or other legal provisions. D. Employee medical records shall be maintained for at least the duration of employment plus 30 years. E. Employee medical records will be provided upon request of the employee or to anyone having written consent of the employee within 15 working days. 10. Program Administration and Evaluation This Exposure Control Plan Program shall be evaluated annually to ensure that it is effective in providing adequate protection against blood and OPIM. The following steps shall be followed to conduct this program review: 1 . The Safety and Health Division shall determine if regulations or national consensus standards have changed since the last annual program review. A. Review Federal OSHA Standards, interpretations and documents. B. Review consensus standards. 2. The Safety and Health Division shall convene a Safety Sub Committee to review the current Exposure Control Plan, proposed changes to State and Federal Regulations and national consensus standards and recommend changes to Book Page 74 Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 the district's Exposure Control Plan as required. 3. The Safety and Health Division shall have 30 days to make minor program changes, and 60 days in the case of major program re-writes. 4. Bloodborne Pathogen Program and Exposure Control Plan reviews shall start by October 15 of each year. 11. References SAFETY-POL-405, Employee Access to Medical Records Title 8, California Code of Regulations, Section 5193, Bloodborne Pathogens Title 8, California Code of Regulations, Section 3204, Access to Employee Exposure and Medical Records 12. Attachments Attachment 1 : Personal Protective Equipment Available to Medical Unit Members Book Page 75 Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 Attachment 1 Personal Protective Equipment Available to Medical Unit Members PPE I Use Guidelines Disposable Gloves Gloves shall be worn where it is reasonably anticipated that employees will have hand contact with blood, other potentially infectious materials, non-intact skin, and mucous membranes. Disposable gloves used at this facility are not be washed or decontaminated for re-use and are to be replaced as soon as practical when they become contaminated or as soon as possible if they are torn, punctured, or when their ability to function as a barrier is compromised Safety Glasses w/side shields Appropriate face and eye protection must be worn when splashes, sprays, spatters, or droplets of blood or other potentially infectious materials pose a hazard to the eyes, nose or mouth I Apron I Gowns, aprons, and other protective body clothing shall be worn whenever there is a risk of splash to the body Other All garments, which are penetrated by blood, shall be removed immediately or as soon as possible. All personal protective equipment will be removed and placed in a designated area or container prior to leaving the work area Book Page 76 I FAHR COMMITTEE Meeting Date To Bd. of Dir. 11/12/03 11/19/03 AGENDA REPORT Item Number Item Number Orange County Sanitation District FROM: Lisa Tomko, Director of Human Resources SUBJECT: Amended Deferred Compensation Plan GENERAL MANAGER'S RECOMMENDATION FAHR03-94 Adopt Resolution No. OCSD 03-_, Authorizing the Director of Human Resources to Appoint or Employ Agents or Advisors to Implement and Administer District's Deferred Compensation Plan Loan Program. SUMMARY In May 2003, the Board of Directors adopted the Amended Deferred Compensation Plan for officers and employees of the District. Within that amended plan is a loan provision whereby participants may take a loan from their account. Tonight we are seeking Board approval for the three providers Lincoln National, Valic and International City/County Management Association (ICMA) to act as plan administrators solely for the purpose of administering the loan provision. The Director of Human Resources would remain plan administrator of the deferred compensation program as a whole. PROJECT/CONTRACT COST SUMMARY Loans would be repaid by the participants directly to the appropriate provider including interest. There will be no cost to the District to administer this program and no fees to be paid to the providers. 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. cg} Not applicable (information item) ADDITIONAL INFORMATION N/A Book Page 77 ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1 . Proposed Resolution G:\wp.dta\agenda\FAHRIFAHR2003\1103\03•94.Deferred Comp.doc Revised 10.28.03 Page2 Book Page 78 RESOLUTION NO. 03-XX AUTHORIZING THE DIRECTOR OF HUMAN RESOURCES TO APPOINT OR EMPLOY AGENTS OR ADVISORS TO IMPLEMENT AND ADMINISTER DISTRICT'S DEFERRED COMPENSATION PLAN LOAN PROGRAM A RESOLUTION OF THE BOARD OF DIRECTOS OF ORANGE COUNTY SANITATION DISTRICT AUTHORIZING THE DIRECTOR OF HUMAN RESOURCES TO APPOINT OR EMPLOY AGENTS OR ADVISORS TO IMPLEMENT AND ADMINISTER THE DISTRICT'S DEFERRED COMPENSATION PLAN LOAN PROGRAM WHEREAS, on May 28, 2003, the Board of Directors adopted Resolution No. 03-1 O, approving the Orange County Sanitation District Amended Deferred Compensation Plan [2003] for Officers and Employees of the District ("Plan"); and WHEREAS, pursuant to the Plan, the District appointed the Director of Human Resources to act as the Plan Administrator; and WHEREAS, the Plan authorizes the Plan Administrator to make loans on behalf of the District from the Trust Fund to Plan Participants, according to specific terms and conditions as the District may prescribe; and WHEREAS, the Plan further authorizes the Plan Administrator to appoint or employ for the Plan any agent or advisor necessary to assist in discharging the Plan Administrator's duties; and WHEREAS, the Plan Administrator desires to employ the services of agents or advisors to implement and administer the District's Deferred Compensation Plan Loan Program. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1: The above Recitals are true and correct. Section 2: That pursuant to Exhibit "A" of the District's Deferred Compensation Plan (Resolution No. OCSD 03-10), the Plan Administrator is hereby authorized to appoint or employ Book Page 79 the services of Lincoln National, Valic and International City/County Management Association to act as agents or advisors for the purpose of implementing and administering the District's Deferred Compensation Plan Loan Program. Section 3: The Plan Administrator, or her designee, is hereby authorized to execute, on behalf of the District, any and all documents necessary to effect said Loan Program, with the approval as to form by the District's General Counsel. PASSED AND ADOPTED at a regular meeting of the Board of Directors held November 19, 2003. CHAIR ATTEST: BOARD SECRETARY G:\wp.dta\agenda\FAHR\FAHR2003\1103\03-94.Deferred Comp.1.doc Revised 1 0.28.03 Page2 Book Page 80 FAH R CO.MMIITEE Meeting Date To Bd. of Dir. AGE NDA REPO RT Orange County Sanitation District FROM: Lisa Tomko, Director of Human Resources Originator: Jeff Reed, Human Resources Manager SUBJECT: Classification Structure Adjustments GENERAL MANAGER'S RECOMMENDATION 11/12/03 11/19/03 Item Number Item Number FAHR03-95 Adopt Resolution No. OCSD 03-_, Amending Resolution No. OCSD 98-33, Amending Human Resources and Policies Procedures Manual, providing for: 1 . Create the Automotive/Heavy Equipment Assistant classification at pay range 53 ($16.772 -$20.965). 2. Delete the Lead Collection Facilities Worker classification at pay grade 66 ($23.123 - $28.904) SUMMARY From time to time, adjustments need to be made to classification structures. New classifications can be added and existing classifications deleted based on the changing needs of the organization. Staff is proposing two adjustments that need to be made to the classification and compensation structure. 1. During the FY03/04 budget process, the Plant Facilities Maintenance Division submitted justification for an additional position to serve as a motor pool assistant/dispatcher. This position would assist with washing, inspecting and checking motor pool vehicles in and out, data entry and entry level automotive work; work currently being performed by higher level employees. The additional headcount -was approved during the budget process. Survey data for this classification for the thirteen comparison agencies places the range maximum at pay grade 53 or approximately 20% below the existing Mechanic classification. 2. For the past several years, employees in the job family of Collection Facilities Worker have been transitioning to the Maintenance Worker, Mechanic, Senior Mechanic and Lead Mechanic classifications through the reclassification or promotional processes. At this time there are no incumbents in the Lead Collection Facilities Worker classification and it can be deleted from the classification listing. Human Resources Policy C10.10 Exhibit A, Salary Schedule has been updated to reflect the proposed modifications and is attached for review and acceptance as Attachment 2. Book Page 81 PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY There is no additional cost for these proposed changes to the classification structure. The cost for the position of motor assistant/dispatcher was already included in the FY03/04 budget process. BUDGET IMPACT ~ This item has been budgeted. D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. D Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. Resolution No. OCSD 03-_. 2. Human Resources Policy and Procedure C10.10, Exhibit A, Salary Schedule. G:\wp.dtalagenda\F AHR\FAHR2003\ 1103103•95. HRP&P .doc Revised: 8/20/01 Book Page 82 Page2 RESOLUTION NO. OCSD 03-_ AMENDING RESOLUTION NO. OCSD 98-33 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT AMENDING HUMAN RESOURCES POLICIES AND PROCEDURES ********************* The Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: That Exhibit "A" of Resolution No. OCSD 98-33 is hereby amended by amending Policy No. C10.10, Classification and Compensation set forth in Attachment No. 1, attached hereto and incorporated herein by reference. Section 2: That all other terms and conditions of Resolution No. OCSD 98-33, as previously recommended, shall remain in full force and effect. Section 3: That all future amendments to Resolution No. OCSD 98-33 be made by Resolution. PASSED AND ADOPTED at a regular meeting held November 19, 2003. Chair ATTEST: Board Secretary G:\wp.dta\agenda\FAHR\FAHR2003\ 1103\03-95.1.doc Book Page 83 i:,:, 0 0 ~ z (1) 00 .;,. Exhibit A CMMS Technician II Lead Electrical Technician Lead Instrumentation Technician Lead Power Plant Operator CIV\MS Technician I Electrical Technician II Instrumentation Technician II Lead Mechanic Lead Welder/Fabricator Power Plant Operator II Senior Plant Operator Machinist Automotive/Heavy Equipment Technician Equipment Operator Senior Mechanic Welder/Fabricator beaEl GelleetieR i;:aeilities WeFkeF Lead Facilities Worker Plant Operator Power Plant Operator I Electrical Technician I Instrumentation Technician I Senior Maintenance Worker Facilities Worker/Builder Facilities Worker/Painter Mechanic Maintenance Worker Control Center Technician Operator-In-Training Autor.notive/Heavy Equipment Assistant Orange County Sanitation District Classification and Compensation Plan Sorted by Bargaining Group 75 $28.874 $32.483 $36.092 75 $28.874 $32.483 $36.092 75 $28.874 $32.483 $36.092 75 $28.874 $32.483 $36.092 71 $26.155 $29.425 $32.694 71 $26.155 $29.425 $32.694 71 $26.155 $29.425 $32.694 71 $26.155 $29.425 $32.694 71 $26.155 $29.425 $32.694 71 $26.155 $29.425 $32.694 71 $26.155 $29.425 $32.694 68 $24.286 $27.322 $30.358 67 $23.700 $26.663 $29.625 67 $23.700 $26.663 $29.625 67 $23.700 $26.663 $29.625 67 $23.700 $26.663 $29.625 09 ~ ~ $@..904 66 $23.123 $26.013 $28.904 66 $23.123 $26.013 $28.904 66 $23.123 $26.013 $28.904 65 $22.555 $25.375 $28.194 65 $22.555 $25.375 $28.194 64 $22.006 $24.757 $27.508 62 $20.945 $23.563 $26.181 62 $20.945 $23.563 $26.181 61 $20.432 $22.986 $25.540 60 $19.938 $22.431 $24.923 58 $18.978 $21.351 $23.723 - 58 $18.978 $21.351 $23.723 53 $18.772. $1U69 $20.965 Attachment 2 Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main {501) NeR el(eFR13t G13eFatieRS & MaiR (:§Q~) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Operations & Main (501) Non-Exempt Op,eratfons & Main {501 ) FAH R COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Jeff Reed, Human Resources Manager Meeting Date 11/12/03 Item Number FAHR03-96 SUBJECT: 2003 November Reclassifications and Equity Adjustments GENERAL MANAGER1S RECOMMENDATION To Bel. of Dir. 11/19/03 Item Number Approve the reclassifications of eight District employees, the upgrading of one vacant position and an equity adjustment for one employee. SUMMARY According to Human Resources Policy and Procedure C10.10, reclassification requests are considered twice a year, during the annual budget process and again in November. Reclassification paperwork was submitted on a total of eleven positions; nine of these positions have incumbents and the remaining two were for upgrades of existing, vacant positions. In addition to the reclassification requests, four equity adjustment requests were submitted. Human Resources reviewed the justification for each position and discussed with the appropriate Department Head for concurrence. Subsequently, Human Resources is recommending that ten of the requests be approved (Attachment 1 ). Five of the requests will result in classification changes for current employees effective immediately. These five employees have met the four criteria outlined in the Reclassification Guidelines which are summarized below: 1 . The incumbent has been in the position that has been reclassified for at least 6 months 2. The incumbent is qualified for the classification to which the position was classified 3. The incumbent has been performing the duties of the classification to which the position was classified for at least 6 months 4. The incumbent's classification is not being reclassified from a non-supervisory to a supervisory classification Four of the requests will result in either future reclassifications (minimum requirements and/or successful completion of test must be achieved) or promotional opportunities (adhering to Human Resources Policy and Procedure 8150.00). Revised: 06/04/03 Page 1 Book Page 85 PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY The additional cost for reclassifications and position upgrades will not be greater than $30,352 for the remainder of FY03/04. BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. ~ This item has not been budgeted. (sufficient funds exist). D Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES Employees will not be reclassified and their duties will be reviewed and adjusted to be consistent with their current classifications. Vacant positions will remain the same. CEQA FINDINGS N/A ATTACHMENTS 1. Reclassifications/Equity Adjustments Submitted For November 2003 Cycle Revised: 06/04/03 Page2 Book Page 86 ATTACHMENT 1 RECLASSIFICATIONS/EQUITY ADJUSTMENTS SUBMITTED FOR NOVEMBER 2003 CYCLE FY03/04 Employee Division Current Title Proposed Title Recommendation Costs Cabral, Jennifer 130 Public Information Specialist Sr Public Information Specialist Deny, does not meet the minimum qualifications for n/a experience Baez,Jesus 230 Storekeeper I Storekeeper II Approve reclassification $1,400 Talsma, Kimberly 520 Human Resources Assistant Human Resources Analyst Approve reclassification $1,605 Morrison, Peter 530 Safety & Health Representative Sir Safety & Health Representative Approve reclassification upon successful completion $2,474 of certification program Min, Dong 632 Senior Laboratory Analyst Principal Laboratory Analyst Approve reclassification $2,143 : Kleinbergs, Mila 640 Associate Engineer Ill Engineer Approve reclassification for March 2004 $1,423 ' ; Sullivan, Moira {fg 850 Library Technician Engineering Assistant I Approve reclassification $2,049 i Lopez, Pinky 910 Administrative Assistant Executive Assistant Approve reclassification for January 2004 $1,364 Dumity, Robert 930 IT Analyst Ill Senior IT Analyst Approve reclassification $2,712 No incumbent 930 Senior IT Analyst Principal IT Analyst Deny request to upgrade position $0 No incumbent 930 IT Technician II IT Analyst 111 Approve upgrade of position, will be posted as a $13,418 promotional opportunity ;, ------·-- Jones, Larry 420 CMMS Technician II Equity adjustment Deny equity adjustment n/a Hamilton, Robert 430 CMMS Technician II Equity adjustment Deny equity adjustment n/a Matthews, Terry 850 CMMS Technician II Equity adjustment Approve 1 step equity adjustment $1,764 Reeves, Richard 850 CMMS Technician II Equity adjustment Deny equity adjustment n/a $30,352 11/5/2003 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Michael White, Controller Meeting Date To Bd. of Dir. 11/12/2003 11/19/2003 Item Number Item Number FAHR03-97 SUBJECT: ORANGE COUNTY SANITATION DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR THE YEAR ENDED JUNE 30, 2003 GENERAL MANAGER'S RECOMMENDATION Receive, file and approve the District's Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2003, prepared by staff and audited by Moreland and Associates, Certified Public Accountants. SUMMARY The District's independent auditors, Moreland & Associates, have completed their examination of the District's financial statements for the year ended June 30, 2003, and have again issued an unqualified opinion. Each year, the FAHR Committee reviews the results of the audit and the corresponding Auditor's report to the Committee. Michael Moreland, Partner, will attend the meeting to respond to any questions of Directors. This year, staff has again prepared the Comprehensive Annual Financial Report that includes the audited financial statements. For the last nine years, the District has earned the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA). This year's report will again be submitted to GFOA for their review in anticipation of another award. The Comprehensive Annual Financial Report, including the Auditor's opinion letter, the Auditor's Report to the Committee, the Auditor's Report on Compliance and on Internal Control Over Financial Reporting, and the Auditor's Appropriations Limit Report are attached. PROJECT/CONTRACT COST SUMMARY N/A 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) G:\wp.dtalagenda\FAHRIFAHR2003\ 1103103-97.CAFR.doc Revised: 8/20/98 Book Page 88 Page 1 ADDITIONAL INFORMATION ALTERNATIVES NIA CEQA FINDINGS NIA ATTACHMENTS 1 . Comprehensive Annual Financial Report for the year ended June 30, 2003. 2. Report on Compliance and on Internal Control Over Financial Reporting. 3. Auditors' Report to the FAHR Committee. 4. Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets. G:\wp.dta\agenda\FAHRIFAHR2003\ 1103\03-97.CAFR.doc Revised: 8/20/98 Book Page 89 Page2 Moreland&~ 91U¼ CERTIFIED PUBLIC ACCOUNTANTS August 28, 2003 The Board of Directors of the Orange County Sanitation District 1201 DOVE STREET, SUITE 680 NEWPORT BEACH, CALIFORNIA 92660 (949) 221--0025 570 RANCHEROS DRIVE, SUITE 260 SAN MARCOS, CA 92069 (760) 752-3390 Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Basic Financial Statements Perlormed in Accordance With Government Auditing Standards We have audited the basic financial statements of the Orange County Sanitation District, (District) as of and for the year ended June 30, 2003, and have issued our report thereon dated August 28, 2003. We conducted our audit in accordance with auditing standards generally accepted in the United 'States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the District's basic financial statements are free of material misstatement, we perlormed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the District's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material wealmess is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material wealmesses. This report is intended solely for the information and use of the Board of Directors and management of the District and is not intended to be and should not be used by anyone other than these specified parties. ~~ / ~ /4,_ Book Page 90 Moreland&~ /FIU¼ CERTIRED PUBLIC ACCOUNTANTS August 28, 2003 The Finance, Administration and Human Resources Committee of the Orange County Sanitation District 1201 DOVE STREET, SUITE 680 NEWPORT BEACH, CALIFORNIA 92660 (949) 221-0025 570 RANCHEROS DRIVE, SUITE 260 SAN MARCOS, CA 92069 (760) 752-3390 We have audited the basic financial statements of the Orange County Sanitation District, (District) for the year ended June 30, 2003, and have issued our report thereon dated August 28, 2003. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Generally Accepted Auditing· Standards and Government Auditing Standards Our responsibility as described by professional standards is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are fairly presented in accordance with accounting principles generally accepted in the United States of America. Because of the concept of reasonable assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, including fraud and defalcations, may exist and not be detected by us. As part of our audit, we considered the internal control of the District. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the District's compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Other Information in Documents Containing Audited Financial Statements Our responsibility for other information in documents containing the District's basic financial statements and our report thereon does not extend beyond financial information identified in our report, and we have no obligation to perform any procedures to corroborate other information contained in these documents. We have, however, read the other information included in the District's comprehensive annual :financial report; and no matters came to our attention that cause us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or its manner of presentation, appearing in the :financial statements. Book Page 91 The Finance, Administration and Human Resources Committee of the Orange County Sanitation District August 28, 2003 Page2 Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. We will advise management about the appropriateness of accounting policies and their application. The significant accounting policies of the District are described in Note I to the basic financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions during the year that were both significant and unusual, or transactions for which there is a lack of authoritative guidance or consensus. Management Judgments and Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by :qianagement and are based upon management's lmowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were the liabilities associated with general liability and workers' compensation claims. Management's estimate of the claims payable liabilities related to general liability and workers' compensation claims is based on reports prepared by third party administrators summarizing the estimated liability for workers' compensation and the reports prepared by District staff summarizing historical loss levels for general liability claims against the District. We evaluated the key factors and assumptions used to develop liabilities associated with general liability and workers' compensation claims recorded in detennining that they are reasonable in relation to the financial statements taken as a whole. Audit Adjustments For purposes of this letter, professional standards define an audit adjustment as a proposed correction of the financial statements that, in our judgment, may not have been detected except through our auditing procedures. An audit adjustment may or may not indicate matters that could have a significant effect on the District's financial reporting process (that is, cause future financial statements to be materially misstated). We proposed no adjustments that indicate matters that could have a significant effect on the District's financial reporting process. 2 Book Page 92 The Finance, Administration and Human Resources Committee of the Orange County Sanitation District August 28, 2003 Page3 Disagreements With Management There were no disagreements with management on financial accounting, reporting or auditing matters that, if not satisfactorily resolved, would have caused a modification to our auditors' report on the District's financial statements. Consultation With Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditors' opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our lmowledge, there were no such consultations with other accountants. Major Issues Discussed With Management Prior to Retention We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the District's auditors. These discussions occurred in the normal course of our professional relationship, and our responses were not a condition to our retention. This information is intended solely for the information and use of the Committee, Board of Director and management of the District and is not intended to be and should not be used by anyone other than these specified parties. 3 Book Page 93 Moreland&~ /'/,w,. CERT/RED PUBLIC ACCOUNTANTS August 28, 2003 The Finance, Administration and Human Resources Committee of the Orange County Sanitation District 1201 DOVE STREET, SUITE 680 NEWPORT BEACH, CALIFORNIA 92660 (949) 221-0025 570 RANCHEROS DRIVE, SUITE 260 SAN MARCOS, CA 92069 (760) 752-3390 Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets We have performed the procedures enumerated below to the accompanying Appropriations Limit worksheet No. 6 ( or other alternative computation) of the Orange County Sanitation District, (District) fortheyearendedJune 30, 2003. These procedures, which were agreed to by the District and the League of California Cities (as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines), were performed solely to assist the District in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. The District's management is responsible for the Appropriations Limit worksheet No. 6 (or other alternative computation). This agreed-upon procedures engagement was performed in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: 1 We obtained the completed worksheets No. 1 through No. 7 (or other alternative computations) and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the Board of Directors. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the Board of Directors. Finding: No exceptions were noted as a result of these procedures Book Page 94 The Finance, Administration and Human Resources Committee of the Orange County Sanitation District August 28, 2003 Page2 2. For the accompanying Appropriations Limit worksheet No. 6, we added line A, last year's limit, to line E, total adjustments, and compared the resulting amount to line F, this year's limit. Finding: No exceptions were noted as a result of these procedures 3 We compared the current year information presented in the accompanying Appropriations Limit worksheet No. 6 to the other worksheets described in No. 1 above. Finding: No exceptions were noted as a result of this procedure. 4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet No. 6 to the prior year appropriations limit adopted by the Board of Directors during the prior year. Finding: No exceptions were noted as a result of this procedure. We were not engaged to and did not conduct an examination, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit worksheet No. 6 (or other alternative computation). Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by Article XIII-B of the California Constitution. This report is intended solely for the information and use of the Board of Directors and management of the District and is not intended to be and should not be used by anyone other than these specified parties. Book Page 95 A. B. C. D. E. F. ORANGE COUNTY SANITATION DISTRICT APPROPRIATIONS LIMIT WORKSHEET #6 FY 2002 -2003 BUDGET LAST YEAR'S LIMIT, as adopted ADJUSTMENT FACTORS 1. Population % 2. Inflation% Total Adjustment % ANNUAL ADJUSTMENT$ OTHER ADJUSTMENTS: Assumed Responsibility-Booking Fees Property Tax Collections (Lost Responsibility) (Transfer to Private) {Transfer to Fees) Sub-total TOTAL ADJUSTMENTS CURRENT YEAR LIMIT Book Page 96 AMOUNT 1 $ss,ss3,ooo 1 1.45% 0.43% 1.89%1 $1,101,0001 $1 ,101.0001 1 $59,660,0001 FAHR COMMITTEE Meeting Date To Bet of Dir. 11/12/03 11/19/03 AGENDA REPORT Item Number Item Number FAHR03-98 Orange County Sanitation District FROM: Gary G. Streed, Director of Finance SUBJECT: DEBT SERVICE RESERVE FUND INVESTMENT GENERAL MANAGER'S RECOMMENDATION Authorize staff to invest the Debt Service Reserve Fund for the 2003 Certificates of Participation through a competitive selection process to be conducted by the District's independent Financial Advisor, Public Resources Advisory Group, in accordance with the District's Investment Policy. SUMMARY The 2003 Certificate of Participation issue resulted in a Debt Service Reserve Fund of nearly $27 million. This fund is managed by the Trustee and is segregated from the funds under the control of the District. Currently, these funds are invested very short-term and very safely. The interest earnings on these funds are well below the fixed rate that we pay on the COPs. Longer term investments will provide higher interest earnings, potentially even higher than our COP costs. Subject to certain limitations, this "arbitrage" is legal, generally because the earnings on our construction proceeds from the COP issue will be so low. Public Resources Advisory Group, and others, have proposed various investment vehicles. PRAG has suggested the lowest cost and least risky combination. They have also proposed a strategy that will allow the District to take advantage of anticipated increased interest rates in the near future. The enclosed Staff Report explains the different options and risks and recommends the PRAG proposal. PRIOR COMMITTEE/BOARD ACTIONS The 2003 Certificates of Participation were authorized and issued in August, 2003. PROJECT/CONTRACT COST SUMMARY The costs to conduct the bidding process will be paid to PRAG by the winning bidder. There will be minor legal costs, less than $10,000, to prepare the necessary documents. BUDGET IMPACT 181 This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. D Not applicable (information item) ADDITIONAL INFORMATION G;\wp.dta\agenda\FAHR\FAHR2003\1103\03-98.DebtServResFund.doc Revised: 06/04/03 Book Page 97 Page 1 All investments involve certain risks. Generally these risks are expected to increase as the anticipated yield increases. This discussion will be limited to the three major investment risk factors that we see in the alternative DSRF investment options, principal risk, interest rate risk and counterparty risk. A brief description of each of these risks is shown in the table below. Type of Risk Description of Risk Principal Risk Risk that the investment may become devalued and worth less than face value before it is redeemed Interest Rate Risk Risk that interest rates may have declined when an investment matures and a new investment must be purchased at a lower yield Counterparty Risk Risk that the security provider will not be able to perform, subjecting the District to principal and interest rate risk Each of the investments briefly discussed above has a varying exposure to each of these three types of risk. Some are more exposed to one or more, and others are less exposed to those or to others. The following table provides a brief and simplistic overview of these relationships. Investment Principal Risk Interest Rate Risk Cash None Yes. Short term rates will change regularly. Short-term Securities Some. As interest Yes. As securities rates increase, the mature and proceeds value of the DSRF need to be reinvested decreases. at the current rates. Rolling Treasuries or None. Investments Yes. Upon failure of Agencies/ Forward are "Federal Debt". counterparty with Delivery Agreement insufficient collateral. Guaranteed Some. Mitigated by Some. Only if Investment Contract collateral counterparty fails or (GIC) requirements, but GIC is shorter than counterparty can fail. debt repayment. ALTERNATIVES Alternatives are discussed in the enclosed Staff Report. CEQA FINDINGS N/A ATTACHMENTS 1 ) Staff Report G:lwp.dtalagenda\FAHR\FAHR2003\ 1103\03·98. Deb!ServResFund.doc Revised: 06/04/03 Book Page 98 Counterparty Risk None None. Investments are typically "Federal Debt''. Yes. Mitigated by collateral, rating downgrade provisions and possessinq securitv Yes. Mitigated by collateral and rating downgrade provisions. Page2 November 12, 2003 Background STAFF REPORT 2003 COPs Debt Service Reserve Fund Preliminary Staff Report re Investing the DSR In August 2003, the District issued $280 million of certificates of participation (COPs) to partially fund the capital improvement program for 2003-04, and to reimburse reserves for some capital outlay in the recent past. Approximately 10% of the original issue was deposited with the Trustee as a Debt Service Reserve Fund (DSRF). This $27 million provides the certificate holders with added security in the unlikely event of a shortfall or untimely District installment payments. Subject to certain legal constraints, the DSRF can be invested so that interest earnings can completely offset the costs of borrowing to fund the DSRF. In the case of the 2003 COPs, earnings in excess of the cost may be allowable because of the expected negative arbitrage on the Construction Fund. Investment Options The investment of the DSRF must comply with the District's investment policy and with the terms of the COP issue, including any special requirements of the COP insurer. Perhaps most importantly, the investment must meet our three policy priorities of safety, liquidity and yield, in that order. As always, these three priorities are somewhat at conflict, especially in today's low interest rate environment. The first two are easily met by investing in cash or in short- term securities. The downside of this approach is that these very short-term rates today are much lower than the cost of the COPs and that this "interest rate risk" or "reinvestment risk" exposure, would occur regularly as the short-term securities matured and the resulting cash would need to be reinvested. Of course, if short-term interest rates increase significantly over the next 30 year period, this risk could actually become an advantage. However, it seems to be much more likely (and prudent to assume) that the earnings from this strategy would not provide the maximum allowable returns over time, especially given the current low short-term interest rate environment. Longer term investments will provide greater yields. These longer term investments could be for terms from 5-years to 30-years, to match the repayment schedule. Several longer term options are available and one common option for borrowers is to enter into a "guaranteed investment contract" (GIC) with a highly-rated collateralized counterparty. An alternative that provides most of the benefits of a long-term investment with less of the risks is a Forward Delivery Agreement. OCSD P.O. Box 8127 Fountain Valley, CA 92728-8127 (714) 962-2411 Book Page 99 Debt Service Reserve Fund Investment Page 2 of 5 November 19, 2003 Risk Analysis All investments involve certain risks. Generally these risks are expected to increase as the anticipated yield increases. This discussion will be limited to the three major investment risk factors that we see in the alternative DSRF investment options, principal risk, interest rate risk and counterparty risk. A brief description of each of these risks is shown in the table below. Type of Risk Description of Risk Principal Risk Risk that the investment may become devalued and worth less than face value before it is redeemed Interest Rate Risk Risk that interest rates may have declined when an investment matures and a new investment with a lower yield must be purchased Counterparty Risk Risk that the security provider will not be able to perform, subjecting the District to principal and interest rate risk Each of the investments briefly discussed above has a varying exposure to each of these three types of risk. Some are more exposed to one or more and others are less exposed to those or to others. The following table provides a brief and simplistic overview of these relationships. Investment Principal Risk Interest Rate Risk Counterparty Risk Cash None Yes. Short term rates None will change regularly. Short-term Some. As interest Yes. As securities None. Investments are Securities rates increase, the mature and proceeds typically "Federal Debt". value of the DSRF need to be reinvested decreases. at the current rates. Rolling None. Investments Yes. Upon failure of Yes. Mitigated by Treasuries or are "Federal Debt". counterparty with collateral and rating Agencies/ insufficient collateral. downgrade provisions & Forward Delivery possession of the Agreement security. Guaranteed Some. Mitigated by Some. Only if Yes. Mitigated by Investment collateral counterparty fails or collateral and rating Contract (GIC) requirements, but GIC is shorter than downgrade provisions. counterparty can fail. debt repayment period. While not traditionally considered an investment related risk, there is another factor that affects these options differently. This is the opportunity to take the cash out of the DSRF and to provide the certificate holders with the security they desire by purchasing an insurance policy. These policies are typically called DSRF surety policies. These policies are attractive when their premium is less than the cost of maintaining the DSRF, they are not attractive if the DSRF earnings are greater than the cost of funds. However, Book Page 100 Debt Service Reserve Fund Investment Page 3 of 5 November 19, 2003 they can be a fairly low-cost source of funds if the DSRF balance is needed for the capital improvement program in a future high interest rate environment. In a rising interest rate environment, the longer term alternatives, such as the GIC, would be at a disadvantage should the District wish to substitute a surety for the DSRF cash. The reason is that the counterparty would demand to be made whole for its future investment earnings (arbitrage) decline that would result from losing a relatively low-cost (compared to the then-current interest rates) source of investment funds from the District's DSRF deposit. Performance or Yield DSRF investments that earn a variable rate of interest may be expected to continue to earn low rates for the foreseeable future, causing the District to generate substantial "negative arbitrage." "Negative arbitrage" is the term applied to the situation where the cost to borrow funds exceeds the interest earned from investing those funds. Maintaining the DSRF in "cash" will certainly be a variable rate investment as the investments will change each day. This will be the most costly, but safest option for the District. Currently this option would result in a cost to the District of about 3.5%. Short-term securities can also be considered as earning a variable rate of interest as they would mature every six months to coincide with the principal and interest payments on the new COPs. The funds from the maturity, or sale, of the securities would need to be invested at whatever the current interest rate would be at that time. Currently this option would result in a cost to the District of about 3.0%. Rolling Treasury or Agency Agreements are a relatively new product in the municipal market; they have been around for only about 1 O years. These are also sometimes called a Forward Delivery/Purchase Agreement. Typically these agreements allow an issuer to earn a fairly high fixed-rate for the life of the agreement. While the agreement is long-term, there are certain provisions that look more like a short-term agreement. On every payment date the provider, or counterparty, is required to deliver cash or securities that will mature on or before the next maturity date in an amount at least equal to the debt service reserve requirement. In this way, the District has a short-term investment that will mature when needed and is expected to be replaced when it is not. The provider expects to have stream of income from the sale of the short-term investment for 30 years and offers a long-term rate. If the provider goes out of business, the District still has the short-term securities. Currently this option would provide minimal positive arbitrage on the DSRF of about .2%. The uncollateralized GIC alternative provides the greatest potential yield to the District. Of course, that comes with the highest risk. Existing District GICs contain provisions to protect the District from these risks and thus have reduced the potential yield. Most significant of these protections is requiring that the counterparty provide collateral for the DSRF and further requiring the counterparty to provide additional collateral or to refund the principal plus accrued interest if their credit rating is downgraded. These collateral requirements change the nature of the GIC into a collateralized GIC. The DSRFs for other District COPs are currently in collateralized GICs. The major difference between the GIC and the FDA is who has possession of the security. In a GIC, the counterparty Book Page 101 Debt Service Reserve Fund Investment Page 4 of 5 November 19, 2003 has possession and in the event of default, the District could lose the principal. Currently this option would provide minimal positive arbitrage on the DSRF of about .2%. Cost to Obtain an Investment As might be expected, the cost to obtain these various investment options differs for each. Generally the cost increases as the potential reward increases. For example, the out-of-pocket cost to keep the DSRF in cash, or daily repurchase agreements, is nearly nothing and is included in the Trustee's fees. The cost to obtain a GIC is somewhat higher as bid specifications must be prepared and a competitive selection process must be completed. The cost of the process is paid by the winning investment provider; the District does not pay anything other than minor legal costs. Of course the provider adjusts the interest bid to recover costs, thus effectively reducing the District's income. Staff has received proposals to solicit and select a provider for reduced rates that range from $25,000 to $45,000. Procurement Options The selection of the investment provider will be through a competitive process, it will not be a sole source. The investment provider will meet the credit standards that the District establishes. The investment agreement will contain the terms that the District specifies. The options revolve around who conducts the competitive process and is paid the fee the District agrees to by the winning investment provider. The firm that provides this service is called a "bidding agent." Staff has not conducted a competitive process to select a bidding agent, but we do have qualified proposals. The fees vary as noted above, but are minimal compared to the investment potential over 30 years, approximately $40 million, and are paid by the investment provider in any case. This procurement seems to be a perfect example of when a decision should be based upon service rather than cost. One proposal has been received from the Grant Street Group using their MuniAuction website. This firm is located in Pittsburg. Their unique product allows potential investment providers to input their bids into a website and to be immediately advised of their ranking among the other bidders. This process is expected to result in an on-line auction with increasing rates until the close of bids. Another proposal has been received from Bond Logistix, L.L.C. This firm has offices in Los Angeles, San Francisco, Dallas and New York. Bond Logistix also uses the internet to obtain bids, but the bidders are not advised of their ranking until the close of bids. This process is expected to result in the highest yield as the bidder is required to start at their "bottom line" or to risk missing the deal. The final proposal is from Public Resources Advisory Group. PRAG serves as the District's independent financial advisor and has offices in Los Angeles, New York and Philadelphia. Their selection process is the same as Bond Logistix's but their fee is lower. Book Page 102 Debt Service Reserve Fund Investment Page 5 of 5 November 19, 2003 Recommendation The staff recommendation is two-fold. First, we recommend a Forward Delivery Agreement for the duration of the DSRF. This vehicle will provide interest earnings sufficient to cover our cost of funds, similar to the earnings from a collateralized GIC. Staff is making this recommendation because the earnings are nearly the same while the counterparty risk is minimal. The risk is reduced because the District's Trustee will always have a short-term Treasury or Agency obligation in hand. Secondly, we recommend the selection of Public Resources Advisory Group (PRAG) as the bidding agent. PRAG is a local firm that is convenient to work with and they are intimately familiar with our long-term financial plan. PRAG has proposed to provide bidding agent services for the lowest of the three proposals received and is the only firm to evaluate products other than the standard GIC. GGS G:\wp.dta\fin\210\streed\AR Staff report DSRF investments 10-2003.doc Book Page 103 FAHR COMM ITTEE AGE NDA RE PORT Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Lisa Arosteguy, HR Supervisor SUBJECT: Rideshare Program Enhancements GENERAL MANAGER1S RECOMMENDATION Meeting Date To Bet of Dir. 11-12-03 11-19-03 Item Number Item Number FAHR03-99 1. Approve two (2) additional vanpool routes for the Rideshare Program utilizing existing vans; and, 2. Approve implementation of rideshare incentives in an effort to comply with SCAQMD Rule 2202 and meet established Average Vehicle Ridership (AVR) targeted goal, at the Board's discretion and subject to change by the Board at any time. SUMMARY In compliance with South Coast Air Quality Management District's (SCAQMD) Rule 2202, On-Road Motor Vehicle Mitigation Options, the District recently submitted its Triennial Employee Commute Reduction Plan (rideshare plan). The SCAQMD approved the District's plan although data submitted showed that the District was not meeting the Average Vehicle Ridership (AVR) targeted goal of 1.5 persons per vehicle as specified by SCAQMD. A proposed amendment to Rule 2202, however, would make AVR attainment mandatory by 2005. The District's current AVR is 1 .4. The employee rideshare survey, conducted in May 2003, indicated that the District's vanpools were the most effective rideshare option in terms of eliminating vehicles on the road and entering the plant. The District has five (5) operating vanpools; three (3) for South County cities and two (2) for Riverside County. All are 12-passenger vehicles. Employees enjoying the benefits of vanpool ridesharing are currently covering approximately 90% of the entire cost of operating and maintaining the van. The cost for participation in the District's vanpools ranges from $35 -$87 per month, depending on miles driven. There is currently an extensive rideshare waiting list for the Riverside County vans. Adding another vanpool to the Riverside/Corona area would allow 12 District employees to arrive on site in one vehicle (for a total of up to 36 District employees in three (3) vehicles). In addition, a recent vanpool interest survey indicated that a vanpool originating in the Diamond Bar/57 Freeway area is likely to attract high participation. Revised: 06/04/03 Page 1 Book Page 104 An additional vanpool route to the Diamond Bar/57 Freeway area would allow another 12 employees to arrive on site in just one vehicle. Adding incentives consisting of gift certificate awards, public transit subsidies and raffle prizes for other forms of ridesharing is projected to increase participation in carpooling, the use of public transportation and bicycling. These program enhancements will assist the District in achieving its AVR goal while also relieving parking shortages at Plant No. 1 due to construction related projects and associated staffing. PRIOR COMMITTEE/BOARD ACTIONS • In May 1989 the Board approved the District's initial Employee Commuter Program. • In March 1990 the program was amended to add vanpooling and paid time-off incentives for ridesharing. • In June 1993, the original two vanpools were expanded to five vanpools due to a long waiting list for existing and prospective routes. • In 1996, the paid time-off incentive was discontinued as a cost savings measure. PROJECT/CONTRACT COST SUMMARY 1 . There is a projected cost of approximately $725 each for adding two vanpools this fiscal year. Currently, approximately 90% of the costs for operating and maintaining the District's vanpools are sustained by the vanpool participants, and the existing vehicles to be used are fully depreciated. If two new vans are purchased in FY04/05, depreciation costs will be incurred each year up to 100,000 miles. 2. The average monthly cost for adding rideshare incentives is approximately $2,150. The details are included in the attached staff report. BUDGET IMPACT ·• This item has been budgeted. (Line item: ) ~ This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. D Not applicable (information item) ADDITIONAL INFORMATION See attached Staff Report ALTERNATIVES Revised: 06/04/03 Page2 Book Page 105 1) Implement vanpools only; no incentives 2) Implement parking fees as a disincentive for employees to drive to work 3). Make no changes to current Rideshare Program CEQA FINDINGS N/A ATTACHMENTS 1 . Staff report 2. Vanpool costs 2002 Revised: 06/04/03 Page 3 Book Page 106 November 12, 2003 STAFF REPORT Rideshare Program Enhancements BACKGROUND The District is required to comply with the South Coast Air Quality Management District's (SCAQMD) Rule 2202, On-Road Motor Vehicle Mitigation Options. To meet the requirement, the District submits an annual Employee Commute Reduction Plan for the Plant No. 1 worksite demonstrating the effectiveness of its Rideshare Program in reducing the number of commuting vehicles. The plan includes the annual employee rideshare survey data and Average Vehicle Ridership (AVR) at Plant No. 1. The District's AVR goal of 1 .5 persons per vehicle specified by the SCAQMD is currently a targeted number. However, a proposed Rule 2202 amendment would make AVR attainment mandatory by 2005. The District's current A VR is 1 .4. An average of 85 employees per day participates in some form of ridesharing including approximately 48 vanpool riders. In addition, the District is currently experiencing a shortage of parking spaces at Plant No. 1 due to construction projects and associated staffing. Future construction will result in further loss of existing spaces. Reducing the number of employee vehicles arriving on site will alleviate some of the parking shortage. ANALYSIS Encouraging employees to leave personal vehicles at home by implementing additional vanpools and rideshare incentives will assist in meeting the more stringent SCAQMD proposed requirements while also easing the current parking shortage. The District currently has five (5) operating vanpools; three (3) going to South County cities and two (2) going to Riverside County. All are 12-passenger vehicles. There is currently an extensive rideshare waiting list for the Riverside County vans. In addition, a recent vanpool interest survey indicated that a vanpool originating in the Diamond Bar/57 Freeway area is likely to attract high participation. Adding two more vanpools would eliminate 18-22 vehicles from entering the plant each day which would assist the District in meeting its AVR goal. The FY03/04 budget included funds for two new vans to replace the two highest mileage vanpool vehicles. If the vans being replaced were to be kept in service for a few more months rather than being placed for auction immediately, two additional vanpool routes could be initiated this fiscal year. The cost to the District is estimated to be less than $1,500 over the next 12 months due to the fact that approximately 90% of the cost of operating and maintaining the vans is paid by the vanpool participants. If proven to Book Page 107 Rideshare Program Enhancements Page2 November 12, 2003 operate at high capacity, new vans for these routes would be proposed for the FY04/05 budget. The District's current rideshare participation rate is approximately 16% with more than half being vanpool participants. A recent survey of other agencies indicated that those with direct monetary incentives, transit subsidies and/or gift certificate programs have an average participation rate of 35%. Adding incentives for other forms of ridesharing is likely to increase participation in carpooling, the use of public transportation and bicycling to further assist the District in achieving its A VR goal as well as creating more available parking. • Point-award system: Employees would earn one (1) point for each day they rideshare. Each point would earn $1.00 toward a gift certificate or other award. Annual cost of incentive at current participation level (37) $ 8,000 Annual cost of incentive at projected participation level (60)* $12,000 Annual cost per participating employee $ 200 *Projection based on survey • Monthly Metrolink subsidy: A monthly subsidy of $50 would encourage employees to take advantage of the public transit available for long distance commuters. Metrolink tickets cost from $160 to over $200 per month depending on point of origin. Annual cost of incentive at anticipated participation level (3) $ 1 ,800 Annual cost per participating employee $ 600 • Rideshare Raffles: Monthly rideshare raffles are low-cost incentives that can be added to generate awareness of the District's rideshare program and further encourage participation [ Annual cost of incentive at $100 per month RECOMMENDATION Total annual cost Total monthly cost 1 $1,200 $25,800 $ 2,150 It is recommended that two additional vanpool routes be initiated immediately by utilizing existing vans when their replacement vehicles have been delivered. It is further recommended that if these new routes continue to attract high participation, that the FY04/05 budget process propose funding for two new vans. Book Page 108 Rideshare Program Enhancements Page3 November 12, 2003 In addition, it is recommended that the following incentives be added to the District's Rideshare Program: • Point-award system • Monthly Metrolink subsidy • Monthly rideshare raffles Implementation of these enhancements will result in a projected increase in rideshare participation and AVR. Rideshare program participation rate Vehicles eliminated through vanpools Average Vehicle Ridership (AVR) Current Program 15% 43 1.4% Book Page 109 Enhanced Program 21% 63 1.6% to 0 0 :,,;' '"ti ~ (\) --0 Vanpool Vehicle Average Miles/Year Total Cost of Fuel Orange County Sanitation District Vanpool Operating Costs 2002 I V-416 V-417 V-419 V-525 ! 12,000 21,000 22,000 28,000 $1,806 $2,520 $2,640 $3,360 Average Vehicle O&M Cost $3,541 $3,541 $3,541 $3,541 Annual Cost $5,347 $6,061 $6,181 $6,901 II Total Operating Costs Passenger Fees (current rates) Total District Cost Cost Per Vanpool I ' _, G:\wp.dla\agenda\FAHR\FAHR2003\1103\03-99.2 V-526 8,000 $1,082 $3,541 $4,623 $29,113 ($25,488} $3,625 $725 FAHR COMMITTEE Meeting Date 11/12/03 AGENDA REPORT Item Number FAHR03-100 Orange County Sanitation District FROM: Gary G. Streed, Director of Finance SUBJECT: COLLECTING CAPITAL FACILITIES CAPACITY CHARGES AS AN ASSESSMENT ON THE PROPERTY TAX BILL GENERAL MANAGER'S RECOMMENDATION To Bd. of Dir. 11/19/03 Item Number This is an information only item and no Committee or Board action is required. It is presented in order to allow the Directors to review the process that staff will be following in order to implement the Board direction of September and to notify the Directors that there will be Resolutions for you to approve in the future. SUMMARY In September 2003, after reviewing many alternatives, the Board authorized staff to collect Capital Facilities Capacity Charges on the annual property tax bill if the connection was to replace a septic tank. At the time of that action, the process and procedures to be followed and any additional actions to be required of the Board were not available to the Directors. Staff has prepared a Petition for the property owner to complete and submit, a Resolution for the Board to adopt for each assessment, and a summary of the process to be followed. Each of these is attached for the Committee to review and comment on. PRIOR COMMITTEE/BOARD ACTIONS In September 2003, the FAHR Committee and the Board directed staff to proceed to collect the CFCC and interest on the property tax bill for a period not to exceed five years. PROJECT/CONTRACT COST SUMMARY There will be a minimal out of pocket cost to record and to release the lien resulting from this process. There will also be some staff time involved, but the staff costs will not amount to much. 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) G :\wp.dla\agenda\F AH RIFAH R200311103\0a-1 00. CFC Cs on Tax Bill.doc Revised: 06/04/03 Book Page 111 Page 1 ADDITIONAL INFORMATION Please see attachments ALTERNATIVES None CEQA FINDINGS N/A ATTACHMENTS 1. Petition for Assessment Installments In Lieu of Payment of CFCC 2. Draft sample Resolution to put installment payments on the property tax bill 3. Process to Collect CFCC on the property tax bill GGS G:\wp.dla\agenda\FAHRIFAHR2003\1103\03-100.CFCCs on Tax Bill.doc Revised: 06/04/03 Book Page 112 Page 2 ORANGE COUNTY SANITATION DISTRICT PETITION FOR ASSESSMENT INSTALLMENTS IN LIEU OF PAYMENT OF CAPITAL FACILITIES CAPACITY CHARGE Instructions: All persons owning an interest in fee title to the premises identified herein must sign the petition prior to submittal to the Finance Department, 10844 Ellis Ave., Fountain Valley, CA 92708. The petition must be accompanied by a current preliminary title report or lot book guarantee issued by a title company that shows ownership is vested in those persons signing this petition. SECTION 1. -APPLICANT AND PROPERTY INFORMATION We, the undersigned owners, hereby petition the Board of Directors to levy an assessment upon the property listed below in lieu of payment of sewer system Capital Facilities Capacity Charges, which are ordinarily due at the time of connection to the sewer system. The property on which a levy is requested to be placed is described as follows: 1. Street Address or Description of Property Assessor's Parcel Number: 2. Name and mailing address of all persons owning an interest in fee title to the above property: Owner's Name Mailing Address Owner's Name Mailing Address Owner's Name Mailing Address SECTION 2. -DELCLARATION AND WAIVER The owner(s) of the property identified above do hereby declare that the property is presently being served by a private septic system which will be abandoned t the time of connection to the sewer system. In the case where an immediate connection to the sewer system is needed, the owner(s) do hereby waive any right of protest of the amount of the assessment installments to be levied in lieu of payment of sewer system Capital Faciltiies Capacity Charges. However, the owner(s) do reserve the right to comment on the fees at the public hearing on the subject petition. Signature of Owner Date Signature of Owner Signature of Owner Date Signature of Owner SECTION 3. -OCSD PROCESSING INFORMATION Lot Book Guarantee Received with Petition Report of Finance Director and Resolution submitted to Board Secretary Public Hearing scheduled and Notification mailed to Property Owner(s) Resolution Ordering Assessment Installments Approved Resolution Ordering Assessment Installments Sent to County G:lwp.dtalfin\210\CRANEIFAHR\FAHR2003\NOVIFORM -CAPITAL CAPACITY CHARGE.doc fin/210/lc Book Page 113 Initial Date Date 10/07/02 Revision 000 11/5/2003 Orange County Sanitation District Computation of Sewer System Capital Facilities Capacity Charge Schedule of Annual Assessment Installments Property Owner: Property Address: Assessor Parcel Number: Capital Facilities Capacity Charge: Annual Interest Rate: 3% Repayment Principal Principal Interest Total Year Balance Payment Palment Payment 1 ** 2,520.00 $474.65 $75.60 $550.25 2 2,045.35 $488.89 $61.36 $550.25 3 1,556.45 $503.56 $46.69 $550.25 4 1,052.89 $518.67 $31.59 $550.25 5 534.23 $534.23 $16.03 $550.25 Total (0.00) $2,520.00 $231.27 $2,751.27 ** Input CFCC total in year 1 Principal Balance G:\wp.dta\fin\210\CRANE\FAHR\FAHR2003\NOV\CFCC installment agrmt 10-2003.xls Book Page 114 RESOLUTION NO. OCSD 03-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT LEVYING ASSESSMENT INSTALLMENTS IN LIEU OF THE PAYMENT OF SEWER SYSTEM CAPITAL FACILITIES CAPACITY CHARGES INCIDENTAL TO THE CONNECTION OF ASSESSOR'S PARCEL NO. XXX-XX-XX TO THE SEWER SYSTEM. * * * * * * * * * * * * * * WHEREAS, in accordance with the provisions of Ordinance No. OCSD-20, the owner of property located in the District's service area, which is being connected to the sewer system, has filed a petition requesting this Board to levy assessment installments in lieu of the payment of the sewer system Capital Facilities Capacity Charges which ordinarily would be due and payable at the time of connecting such property to the sewer system; and, WHEREAS, this Board has considered such petition at a public meeting, notice of which was duly served on each owner of an interest in the fee title to the property; and, WHEREAS, this Board now desires to grant such petition and levy the assessment installments in lieu of payment of sewer system Capital Facilities Capacity Charges requested therein in the manner provided for by Ordinance No. OCSD-20. NOW, THEREFORE, THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: This Board finds that: A. All owners of an interest in the fee title to the property described in the Petition for Assessment attached hereto, have executed and filed said petition requesting this Board to levy assessment installments in lieu of the payment of sewer system CFCCs which ordinarily would be due and payable at the time of connecting such premises to the sewer system; and; and B. Such premises are or were served by a private sewer system consisting of a septic tank and leach field system that was or will be abandoned at the time of the connection of the premises to the sewer system; and C. Levying assessment installments in lieu of payment of sewer system CFCCs for such premises, either individually or in combination with other premises similarly connected to the sewer system will not seriously compromise the District's ability to fund any anticipated expansion of the sewer system. 1 Book Page 115 D. The total amount of the sewer system Capital Facilities Capacity Charges that have or become due and payable at the time of connecting such premises to the sewer system is set forth in the Petition for Assessment. E. In accordance with the provision of Ordinance No. OCSD-20, assessments in lieu of the payment of sewer system Capital Facilities Capacity Charges shall be and are hereby levied against such premises in five installments during the years and in the amounts provided for in the schedule of assessment installments also as set forth in the Petition for Assessment. F. The Board Secretary is directed to canvas a copy of this Resolution to be served on each owner of an interest in the fee total to such premises, to execute an affidavit or declaration attesting to such service after completing same, and to transmit a certified copy of this resolution and such affidavit or declaration to the Finance Director!Treasurer. G. Upon receipt of a certified copy of this Resolution , the Finance Director!Treasurer is directed to attach the affidavit or declaration attesting to the service of this resolution in the manner provided for herein to the certified copy of the resolution and to cause such documents to be recorded in the official records of the County of Orange, and the Finance Director!Treasurer to transmit the Resolution to the County of Orange Auditor-Controller with a request that the assessment installments levied hereby and set forth herein be added to the County tax rolls at the time and in the manner provided for herein. H. After recordation of a certified copy of this Resolution in the manner provided for herein, the assessment installments levied by this Resolution shall become a lien on the premises as described in the Petition for Assessment, which shall have the priority and effect of an assessment lien as provided for in Article 33, Chapter 4, Part 1, Division 2, Title 5 of the California Government Code (commencing with Section 52930) or any other law of the State of California applicable to assessment liens levied by a county sanitation district. I. After transmittal of a certified copy of this Resolution to the County of Orange Auditor-Controller in the manner provided for herein, the assessment installments levied by this Resolution shall be payable in the same manner and at the same time as general taxes of the County of Orange on real property are payable, and such assessment installments and all interest therein shall become delinquent at the same time and bear the same proportional penalty and interest after delinquency as do the general taxes of the County of Orange on real property. 2 Book Page 116 Section 2: This Resolution shall become effective immediately upon adoption . PASSED AND ADOPTED at a regular meeting of the Board of Directors held -----, 2003. Chair ATTEST: Board Secretary 3 Book Page 117 November 12, 2003 Process to Collect Capital Facilities Capacity Charges on the Orange County Property Tax Bill In September 2003, the Board of Directors authorized property owners who were then using septic tanks for sewage disposal to pay their Capital Facilities Capacity Charge (CFCC) over time and for that fee and interest to be collected as a separate assessment on the Orange County property tax bill. The time period cannot exceed 5 years. The interest to be included in the annual charge is to be determined at an annual rate of 3%. Payments will be fully amortized and there will be no prepayment penalties. In order to qualify for this time payment plan, the property must be served by septic tank on October 1, 2003, must connect to a local sewer within 3 years of the availability of a local sewer or by September 30, 2006, whichever is later. Each property owner wishing to utilize this method of deferring the up-front cost of the District CFCC must complete the Petition for Assessment Installments In Lieu of Payment of Capital Facilities Charge form and submit it to the Director of Finance. This petition must be accompanied by a current preliminary title report or lot book guarantee showing the complete ownership of the property. Upon receipt of the completed petition and attachments, the Finance Department will mail a formal notice of the request and the action scheduled for a future Board meeting to every person owning an interest in the property. The Board of Directors will then pass a separate Resolution for each property assessing the amount of the CFCC and interest against that property. A copy of the Resolution will be mailed to each property owner. The Resolution and the Declaration of the Board Secretary will be recorded with the Orange County Recorder's Office and will become a lien against the property until the full amount is repaid. The Finance Department will send a copy of the Resolution to the Orange County Auditor-Controller's Office requesting that they add the annual payment to the annual property tax roll for the property. The property owner will pay the annual fee for 5 years, until paid in full or until the ownership changes. At any time, any remaining fees may be prepaid without interest or penalty at the District Offices. When the total fees are paid, the lien against the property will be released by filing a notice with the Orange County Recorder's Office. Until the assessment is paid in full it is a lien against the property. The Board of Directors is authorized to collect any unpaid assessment, including interest, by an action in the Superior Court for foreclosure. GGS G:\wp.dta\fin\210\CRANE\FAHR\FAHR2003\NOV\ATTACHMENT_capital facilities cap charge process 10-03.doc Book Page 118 -ORANGE'-COUNTY SANITATION DISTRICT (714)962-2411 Maili11:g Address: P.O.'Box8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708--7018 0 C SJ) _2/13 /.0 3 ,:, ~ Investment Management Program Orange County Sanitation District Strategy Review for the Period July 31, 2003 -September 30, 2003 September 2003 Agenda I. Performance & Market Review 11. Economic Outlook & Strategy Ill. Organizational Update 1 PIM C 0 Performance Review Performance 12 • Orange County Sanitation District 10 • Merrill Lynch 1-5 Yr. Gov't/Corp. Index Asset Growth Market Value as of Dec. 2002 $ 321,241,336 ~ -:12. 0 8 Contributions / Withdrawals 54,100,000 -...., CJl C 6 I,.. Net lm,estment Earnings* 10,591,529 ::J .µ Q) a'. Market Value as of Sep. 2003 $ 385,932,865 4 2 0 96 97 98 99 00 01 02 03 Orange County Sanitation District Long Term Portfolio (periods ending September 30, 2003) Since Inception 09/30/95 5 Yrs. 3 Yrs. 2 Yrs. 1 Yr. 9 Mos. 6 Mos. 3 Mos. Before Fees(%) 6.7 6.1 7.2 5.6 4.1 3.0 1.8 0.3 Merrill Lynch 1-5 Yr. Govt/Corp. Index(%) 6.7 6.3 7.7 5.7 4.6 3.2 2.0 0.3 • Includes income and realized/unrealized gains and losses, less management fees; all periods longer than one year are annualized 2 PIM C 0 Performance Review Asset Growth Market Value as of Dec. 2002 Contributions / Withdrawals Net lm.estment Earnings* Market Value as of Sep. 2003 $ 64,339,418 (26,900,000) 514,520 $ 37,953,938 9 8 7 6 ,...._ .;g_ 0 ....... 5 <fl C: 34 ..... QJ a::: 3 2 1 0 96 97 Orange County Sanitation District Liquid Operating Portfolio (periods ending September 30, 2003) Since Inception 09/30/95 5 Yrs. 3 Yrs. 2 Yrs. Before Fees(%) 4.8 4.2 3.3 1.9 Citigroup 3-Month Treasury Bill Index(%) 4.3 3.7 2.7 1.6 Performance • Orange County Sanitation District • Citigroup 3-Month Treasury Bill Index 98 99 00 01 02 03 1 Yr. 9 Mos. 6 Mos. 3 Mos. 1.5 1.0 0.6 0.3 1.2 0.8 0.5 0.3 • Includes income and realized/unrealized gains and losses, less management fees; all periods longer than one year are annualized. 3 PIM C 0 Performance Review Asset Growth Market Value as of Aug. 2003 Contributions / Withdrawals Net lm,estment Earnings* Market Value as of Sep. 2003 $ 142,496,777 (12,754,225) 199,365 $129,941,918 Orange County Sanitation District 2003 COP Proceeds -Future Construction (periods ending September 30, 2003) Before Fees(%) Citigroup 3-Month Treasury Bill Index(%) Since Inception 07/31/03 1 Mo. 0.12 0.14 0.10 0.08 * Includes income and realized/unrealized gains and l9sses, less management fees. 4 PIM C 0 Interest Rate Strategies Slight Drag in Volatile Quarter Prior Outlook: • Fed will keep short-term interest rates low • Yields will remain near current levels Portfolio Strategy: • Slightly above-index duration in July as mortgages extended; subsequently shifted to near-index duration • Curve positioning broader than index SOURCE: Bloomberg Financial Markets U.S. Treasury Yield Curves 6 r-----------------------------, 5 i 4 ........ :s! 3 ~- ----12/31/02 4.9 4.8 4.6 (II ;;: 2 1 0 1---------~ 3m 2Y SY Duration: Curve: 5 --06/30/03 --09/30/03 ~---------------45 lOY •Yield Changes in Q3 (bps) 0 30Y 30 15 0 PIM C 0 Non-Treasury Sectors Continued to Outperform Prior Outlook: • Core assets fully valued • Excess performance generated from non-core sectors Portfolio Strategy: • Mortgages -actively managed coupon selection • Corporates -underweight with focus on telecom and auto issues • Treasuries -gain exposure through tactical allocation to TIPS SOURCE: Salomon Brothers, J.P. Morgan, Lehman Brothers Sector Index Returns* 24 ,----------------------------~ 21 ~ 18 0 ~ 15 C 3 12 ..... ~ 9 2 6 0 I-3 0 -3 .__ __________________________ __J Trsy Mtgs Mortgages: Corporates: Sector Weight Security Selection TIPS: Corp HY + + Non- U.5.$ Emg Mkt • Returns for mortgages and corporates have been duration adjusted utilizing Lehman Brothers reported excess returns relative to Treasuries. 6 PIM C 0 Economic Outlook Improves, Long-Term Sustainability Questionable Global Economy Improves Near-Term • U.S. policy stimulus "Wet Logs": Secular Economic Imbalances Deepen • Large trade deficit in U.S. • Lagged impact of mortgage refinancing • U.S. stock market rally • European and Japanese economic recovery • Global excess capacity • European growth below potential • Financial socialism in Japan "Wet Logs" Prevent Policy Push From Igniting Strong Recovery • GDP accelerates over next several quarters, but moderates longer term • Policymakers will reflate, but inflation will be benign • Interest rates volatile but range-bound; expect secular rise in yields 7 PIM C 0 Roll-Down Adds Value in Low Interest Rate Environments Benefits of Intermediate Focus • Opportunities for alpha in a stable interest rate environment 1. Buy 5-year Treasury -Priced at 100 -3.2% yield 2. One year later, own 4-year Treasury -2.7% yield -Price appreciates to 102* -Investment return is 5.2% -2% capital gain -3.2% coupon 3. Sell notes, reinvest proceeds in a new 5-year Treasury and repeat the process • Return from rolling down the intermediate sector of the curve exceeds 10-year yields SOURCE: PIMCO ........ ::,':: 0 3.2 '--' "Cl v > 2.7 0 4 5 10 Maturity (yrs) • Assumes stable yield curve; actual price of 102.1 assuming average duration of 4.2 years during the one-year holding period. 8 Current 30 PIM C 0 PIMCO Update As of September 30 , 2003 • Founded in 1971 • Specialty fixed income manager • Assets under management: $356.5 B • 633 employees: 199 investment professionals 434 technical and support • Highly experienced -All investment professionals -Senior professionals • Dedicated sector specialist teams Years 13 17 Years at PIMCO 6 8 • Consistent record of outperformance with "benchmark-like" risk Of the 199 professionals, the average experience in the business is 13 years, and the average time with the finn is 6 years. 9 PIM C 0 Building on Fixed Income Expertise to Meet Client Needs Strategy Description Assets Traditional: Total Return PIMC0's flagship style: Core/ Core Plus $ 170.6 Long Duration Focus on long-term bonds 8.5 Moderate Duration Total return with intermediate duration 7.2 Low Duration Total return with shorter duration 20.6 Short-Term Active cash management techniques 10.6 Money Market Maximize income while preserving capital 0.8 Stable Value Strategies that use book value wrappers 16.5 Sector-Specific: Credit: Investment Grade Corporates High quality corporate bond portfolios 6.3 High Yield Emphasis on upper tiers of high yield market 16.9 Diversified Income Global credit combining corporate and emerging markets debt 0.2 CBO/CLO Collateralized bonds/loan obligations 7.6 Mortgages Includes LIB0R-based mortgage products 8.9 Global Non-U.S. and global approaches 31.8 Emerging Markets Focus on solid credits with improving economic fundamentals 4.2 Real Return: Real Return TIPS and other inflation-hedging strategies 14.6 CommodityRealReturn Commodity-linked exposure backed by a bond portfolio 0.6 All Asset Tactical allocation among PIMC0 funds 0.6 Equity PLUS: StocksPLUS and StocksPLUS Total Return Combines passive equity index exposure with active bond management 20.7 Other: Municipals Tax-efficient total return management 7.9 Convertibles Balanced risk/reward profile that provides downside protection 0.1 Other Private placement investments 0.3 Total Assets Under Management: $ 356.5 B Assets as of September 30, 2003. Potential differences in asset totals are due to rounding. 10 PIM C 0 for the Fiscal Year Ended June 30, 2003 Orange County Sanitation District, California n 0 3 -c 111111 (D :r (D :, ti) -• < (D > :, :, C Q) -.,, -• :, Q) :, C, -• Q) -::a (D -c 0 111111 r+ I l ORANGE COUNTY SANITATION DISTRICT ORANGE COUNTY, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2003 Prepared By: Department of Finance Accou_nting Division Michael D. White, CPA Controller (THIS PAGE LEFT INTENTIONALLY BLANK) r f r r f t l I L l ' L L L INTRODUCTORY SECTION: ORANGE COUNTY SANITATION DISTRICT Comprehensive Annual Financial Report Table of Contents For the Year Ended June 30, 2003 Letter of Transmittal ..................................................................................................................... . GFOA Certificate of Achievement................................................................................................ viii CSMFO Certificate of Award .. ....... .......... ...... .. . ..... ......... .. . . .. . ... ... .. ..... .......... ... . ..... .................. .. .. ix Board of Directors ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .. . . . . . .. . . .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . . . . . . x Organization Chart .. .. . . .. .. .. .......... ... . . . . . .. ... . . . ... .. . . . .. . . .. . . . .. . . . . . . . ... . . . .. . . .. . . . . .. .. .... . ... . . .. .. .. . . . . . . . . . . . .. . . . . . . xi Map of Service Area..................................................................................................................... xii FINANCIAL SECTION: Independent Auditors' Report ...................................................................................................... . Management's Discussion and Analysis -Required Supplementary Information ..................... .. Basic Financial Statements: Statement of Net Assets ..................................................................................................... . Statement of Revenues, Expenses, and Changes in Net Assets ..................................... . Statement of Cash Flows ................................................................................................... . Notes to Basic Financial Statements .................................................................................. . Supplementary Information: Combining Statement of Net Assets .................................................................................. . Combining Statement of Revenues, Expenses, and Changes in Net Assets ................... . Combining Statement of Cash Flows ................................................................................. . Schedule of Changes in Net Assets by Activity and Revenue Area ................................... . STATISTICAL SECTION: Expenses by Type -Last Ten Fiscal Years ................................................................................. . Revenues and Gross Capital Contributions by Source -Last Ten Fiscal Years ......................... . Property Tax and User Fee Levies and Collections -Last Ten Fiscal Years .............................. . Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years .............................................................................................................. . Property Tax Rates -Direct and Overlapping Governments - Last Ten Fiscal Years .............................................................................................................. . Principal Users ............................................................................................................................ . Ratio of Annual Debt Service for Bonded Debt to Total Expenses -Last Ten Fiscal Years ...... . Bond Coverage -Last Ten Fiscal Years ..................................................................................... . Computation of Direct and Overlapping Debt ............................................................................ .. Demographic Statistics -Last Ten Fiscal Years ........................................................................ .. Property Value and Construction -Last Ten Fiscal Years .......................................................... . Estimated Populations Served by the Orange County Sanitation District ................................... . Insurance in Force ........................................................................................................................ . Comparison of the Volume of Wastewater Treated With Revenues and Expenses - Last Ten Fiscal Years ............................................................................................................. . Biosolids Produced -Last Ten Fiscal Years ............................................................................... . Miscellaneous Statistics ............................................................................................................... . 1 3-8 10 11 12 13-28 30 31 32 33 35 36 37 38 39 39 40 41 42 43 44 45 46 47 48 49 (THIS PAGE LEFT INTENTIONALLY BLANK) phone: (714) 962-2411 mailing address: P.O. Box 8127 'ountain Valley, CA 92728-8127 street address: Cl844 Ellis Avenue · , 'ountain Valley, CA 92708-7018 Member Agencies • Cities Anaheim Brea Buena Park Cypress Fountain Valley Fullerton Garden Grove Huntington Beach Irvine La Habra Le Palma Los Alamitos Newport Beach Orange Placentia Santa Ana Seal Beach Stanton Tustin Villa Park Yorba Linda ,unty of Orange Sanitary Districts Costa Mesa Midway City Water Districts Irvine Ranch ORANGE COUNTY SANITATION DISTRICT August28,2003 The Board of Directors of the Orange County Sanitation District, Orange County, California Submitted herewith is the Comprehensive Annual Financial Report of the Orange County Sanitation District, Orange County, California for the fiscal year ended June 30, 2003. This report includes the financial position and activity of the three individual revenue areas, as described within the Governmental Structure below, as of June 30, 2003 and was prepared by the Accounting Division of the District's Finance Department. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the District. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the District. All disclosures necessary to enable the reader to gain an understanding of the District's financial activities have been included. The report presented herewith consists of three parts: (1) an introductory section consisting of a letter of transmittal, awards received for the prior year's Comprehensive Annual Financial Report, a listing of the Board of Directors, an organization chart, and a map of the individual revenue areas; (2) a financial section consisting of the independent auditors' report, Management's Discussion and Analysis of the Financial Statements, basic financial statements, and supplementary financial statements and schedule of the individual Revenue Area Funds; and (3) a statistical section consisting of pertinent financial and nonfinancial data that presents historical trends and other information about the District. Included within the accompanying financial statements are all of the organizations, activities, and functions controlled by the District's Board of Directors in accordance with the Governmental Accounting Standards Board Statement Number 14, 'The Financial Reporting Entity". For the purpose of this evaluation, control was determined by the Board's responsibility for: (1) adoption of the budget and user charges, (2) taxing authority, and (3) establishment of policies. The reporting entity and its services are described in further detail in Note 1 of the financial statements. GOVERNMENTAL STRUCTURE The Orange County Sanitation District encompasses the Northern section of Orange County. The District provides wastewater treatment for an area of the County covering 471 square miles and serving a population of approximately 2.4 million, or 81 percent of the County's population. The District was originally incorporated in 1954 as nine separate public corporations, or districts. In April of 1998, at the District's request, the Board of Supervisors of the County of Orange passed Resolution No. 98-140 ordering the consolidation of these nine County Sanitation Districts into a new, single sanitation district, to be known as the Orange County Sanitation District, effective July 1, 1998. This action was recommended to the Board by the Local Agency Formation Commission in order to simplify governance structures, reduce the size of the Board, ease administrative processes, streamline decision-making and consolidate accounting and auditing processes. The boundaries of the nine previous districts had remained intact for the purpose of collecting sewer user fees at the previously established rate schedules, and were referred to as nine individual revenue areas through June 30, 2000. Effective July 1, 2000, all Revenue Areas, except Revenue Area 7 and 14, consolidated user fee rates and all enterprise fund accounting and budgeting activities. "Maintaining World-Class Leadership in Wastewater and Water Resource Management" The District is managed by an administratfve organization composed of directors appointed by the agencies or cities which are serviced by the D.lstrict. Each of the three remaining Revenue Areas (the Consolidated Revenue Area, Revenue Area 7 and Revenue Area 14) has its own budget and is responsible for the construction and maintenance of its own collection system. Al l Revenue Areas, except Revenue Area 14 and the portion of the Consolidated Revenue Area previously known as Revenue Area 13, receive their own share of the one-percent ad valorem property tax levy. In addition, all Revenue Areas except Revenue Area 14, collect user fees from property owners. Revenue Area 14 receives all of its revenues from service charges to the Irvine Ranch Water District. The purpose of the District'~. wastewater management program is to protect the public's health, preserve the beneficial uses of the coastal waters, and maintain air quality. The objectives of operating the treatment plants are to process and dispose of the treated wastewater and the separated solids In accordance with Federal, state, and local laws including the Environmental Protection Agency. The District sewerage system includes approximately 650 miles of sewers that convey wa stewater generated within the District's boundaries to the District's two wastewater treatment plants1 Reclamation Plant No. 1 located in the City of Fountain Valley, and Treatment Plant No. 2 located in the City of Huntington Beach. Plants No. 1 and No. 2 have primary treatment capacities, Including standby, of 108 million gallons per day (mgd) and 168 mgd, respectively. Approximately 60 percent of the advanced primary effluent also receives secondary treatment. Botli plants are master-planned for a future primary and secondary treatment capacity of 240 mgd for a combined total of 480 mgd. Outflows of treated wastewater from the two plants are combined and discharged to the ocean off the Huntington Beach coast through an outfall pipe that is 120 inches In diameter and approximately five miles long. The last mile of the outfall pipe is a diffuser that dilutes the wastewater with seawater in a ratio of 148 parts seawater to one part treated wastewater at an average depth of 185 feet. ECONOMIC CONDITIONS AND OUTLOOK The Anderson Center for Economic Research at Chapman UniYersity is forecasting a continuing recovery for Orange County from the recession of 2001 with real gross domestic product growth of around three percent through 2004. While not high, this should still be enough to outpace job growth, which is projected to increase steadily but only to 2.4 percent by year-end 2004. This translates to an average annual percentage increase of 1.0 percent in 2003 and 2.1 percent in 2004, with net job creation of about 13,000 jobs in 2003 and 30,000 in 2004. The unemployment rate for Orange County decreased slightly from 4.1 percent in FY 2001-02 to 4.0 percent in FY 2002-03 Total taxable sales is forecasted to increase 3.2 percent n 2003 and 4.3 percent in 2004 while personal irn;;ome is forecasted to increase over the same time period 3.9 percent and 4.3 percent, respectively, Nonresidential valuation is forecasted to decline $150 million through year-end 2004 due primarily to the high vacancy rate fo r office buildings of 16.4 percent that is cutting Into qemand. However, higher housing demand is leading to a forecasted increase in dwelling units to 14,000 units in 2003 and 13,100 units in 2004, as compared to an actual number of 11 ,900 units in 2002. Total buil ding permit valuation is forecasted to increase to $3.7 billion in 2003 and decline slightly to $3.6 billion in 2004, both roughly in line with 2002 but with more residential and less nonresidential valuation. There currently is no evidence suggesting that housing prices are likely to decline as they did in the early 1990s. The unsold inventory remains at a very tight 1. 7 months as compared to the 1992-95 period when it averaged 15 months. In addition, the median time on the market for single family homes is at a decade low 27.7 days. Historically, the median time on the market for single family units has always shot up before the rate of housing appreciation has ever decreased , which hasn't occurred yet in this current l I \.._ r r ,-· L L l l L L cycle. However, there are signs that the housing appreciation rate is likely to fall soon. Not only is the county's affordable index near historic lows, but mortgage rates are forecasted to increase through 2004. Such an increase, combined with continuing housing appreciation, will further lower affordability levels. Another factor signaling a slowdown in housing appreciation is that recent price increases have been highest in central Orange County cities like Fullerton, Santa Ana, Orange and Garden Grove. Appreciation rates in coastal cities like Newport Beach and Laguna Beach have slowed dramatically. This suggests that the housing price swing has run its course and should soon lose steam. Chapman's forecast calls for housing appreciation to peak in 2003 at 14.5 percent and drop to 4.2 percent in 2004. MAJOR INITIATIVES Preferred Level of Treatment In order to eliminate most bacteria from being released from the ocean outfall, the District began in FY 2002-03 to first use chlorine bleach to disinfect the effluent and then apply sodium bisulfate to remove any remaining chlorine prior to releasing the treated wastewater to the ocean. The District continues to take great measures to limit the chlorine residual to a very low level, essentially non-detectable, to protect the animal life in the ocean. This mode of disinfection is anticipated to occur for the short-term, possibly three years, while the District studies, designs and constructs permanent facilities, and considers alternate disinfection technologies. Beginning in FY 2002-03, the addition of disinfection treatment required an annual outlay of $5.7 million in additional chemicals within the joint operating budget of the District. Once the Board of Directors decided on a full secondary discharge standard in July 2002, staff prepared the Secondary Treatment NPDES Permit Application that was required to be submitted to the regional office of Environmental Protection Agency (EDA) and the Regional Water Quality Control Board (RWQCB) in December 2002. Regulators are now evaluating the proposed terms and conditions of the permit application and determining whether it will meet the applicable federal and state standards. The next step will be the negotiation process, which could take anywhere from six months to several years. Following negotiations, a new draft NPDES permit will be issued to the District for future operations. The EPA and RWQCB will then conduct public hearings and issue a permit. In the interim, the District's 1998 permit will remain in effect. Completion of the additional capital improvements needed to meet full secondary treatment standards is scheduled for December 31, 2012 at a cost of $422 million. In the interim the District will operate the plants to maximize available secondary treatment and to reduce effluent biochemical oxygen demand and suspended solid discharges below currently allowed limits. Each year the current 60 percent secondary portion will increase incrementally as operations change and new facilities are constructed and placed in service over the next eleven years. Once full secondary standards are achieved, it is estimated that the operating cost of processing the increased level of biosolids will grow from approximately $10 million to $20 million per year. Groundwater Replenishment System The District and the Orange County Water District (OCWD) are currently developing the Groundwater Replenishment System (GWRS) project that will be the largest water reclamation project in the nation. GWRS is a joint effort by the two agencies to initially provide 78,400 acre-feet per year of reclaimed water for replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion barrier. iii GWRS will have the capacity to divert up to 100 million gallons of water a day from the District's ocean discharge during peak winter storms, which will allow the District to defer construction of an additional ocean outfall at an estimated cost of $170 million. The District and OCWD have agreed to match the funding for this project. The District alone has budgeted $236.2 million through 2007. Through FY 2002-03, $24.5 million of this amount has been incurred with an additional $43.1 million included in the cash flow outlay for FY 2003-04. Federal and State Grants are expected to reduce these local costs. Biosolids Program The District currently land applies its entire biosolids residuals for beneficial reuse in Kings, Kern, and San Bernardino counties, in Arizona, and on tribal lands through contracts with biosolids management service providers. Riverside, Kern, and Kings County have enacted biosolids ordinances eliminating land application of Class B biosolids effective January 2003. Class B biosolids reuse options and capacities for the management of District biosolids are becoming insufficient as a result of this legislation. In response to these regulatory developments, the District developed a short-term biosolids management plan that analyzes several different technologies so that the District could maintain its policy of providing environmentally sound biosolids management with an emphasis on multiple, independent reuse alternatives. As a result of this plan, the District has reviewed several Class A biosolids technology options and has entered into a biosolids management contract with California Soil Products for the production of a Class A chemically stabilized biosolids product. A long-term biosolids management program will be developed that will be based on relationships with host communities and farmers willing to continue accepting Class B biosolids and producing Class A biosolids products. A comprehensive biosolids plan is currently underway that will review many options from dewatering technologies to final products and markets. Some of the options to be included in the plan include turning biosolids into consumer-based products such as pellets or creating bio-fuel. Asset Management In June 2001, the District began the initial development of a strategic level Asset Management (AM) Improvement Program that will follow with the eventual implementation of specific AM improvement projects over a period of years. AM provides for the systematic planning, acquisition, deployment utilization control, and decommissioning of capital (infrastructure) assets. It integrates policy (strategic- level) management, system/network (mid-level) management, and operations level management into one focus. AM is all about maximizing the life cycle assets of public infrastructure while continuously delivering the desired level of customer service. In short, AM focuses on the optimal stewardship of community assets. Being the third largest wastewater treatment facility on the West Coast, the District has a net capital asset value of $87 4 million as of June 30, 2002 and anticipates the investment of approximately $2 billion in new capital assets over the next two decades. The development of the Asset Management program was subdivided into two phases: Strategic Plan Development, and Implementation Plan Development and Implementation. The Asset Management Strategic Plan was completed and adopted by the Board of Directors in December 2002. The strategic plan will include; an analysis of the current state of asset management at the District, the development of a basic and advanced asset management program tailored to the District, a gap analysis showing the needed changes for each level of asset management, a scope of work for the implementation phase of the effort, and approval of the plan from the Board. The Asset Management Strategic Plan is located on the District's website under special reports. Although the Strategic Plan was adopted by the Board in December, the size, complexity, and method for the implementation approach is still being determined. The Strategic Plan presented a business case for the District for implementation of advanced asset management practices. The business case showed that iv r l I f I l L I l.,,: L an expenditure ranging between $22 million and $38 million over a ten year period would conservatively save at least $350 million in life cycle asset costs over a 25 year period, save an additional $50 million in reduced capital expenditures, as well as put the District on track to developing a platform for sustainable infrastructure. In April 2003, the Board directed staff to submit the Asset Management Program to an independent peer review process with the intent of developing recommendations for the Board. Full implementation of the asset management program is projected to take up to eight years. As Asset Management is a process of continuous improvement, the future state of asset management will continually be reviewed SERVICE EFFORTS AND ACCOMPLISHMENTS In April 2003, the District was presented with a Clean Water Partner Certificate by the Environmental Protection Agency (EPA) at a ceremony held at EPA headquarters in Washington D.C. for extraordinary efforts and contributions to watershed protection. The District has been involved in a number of cooperative ventures to improve water quality in the Santa Ana River watershed including co-founding the Santa Ana River Watershed Group, management of dairy wash water, studies of endangered species in the river, diversion of urban runoff away from Orange County's beaches, and conducting full-scale bacterial source tracking investigations to determine the cause of elevated bacterial levels at local beaches. In June of 2003, the Orange County Water District and Orange County Sanitation District's joint Groundwater Replenishment System (GWR) received the "2003 Drought Proofing Award" from the Santa Ana Watershed Project Authority. This joint capital improvement project will produce water similar in quality to bottled water, by taking highly treated wastewater that is currently released into the ocean, and purifying it through microfiltration, reverse osmosis and ultraviolet light with hydrogen peroxide advanced oxidation treatment. The purified water will become part of a seawater barrier and be pumped through a 13 mile pipeline to percolation ponds in Anaheim. It will then seep into deep aquifers and blend with Orange County's other sources of groundwater, following the same natural filtering path rainwater takes through the ground. Once completed in 2007, the GWR System will produce 72,000 acre-feet (or 23.4 billion gallons) of purified water annually-enough water to serve 140,000 Orange County families. ACCOUNTING AND BUDGETARY CONTROLS The District's accounting records are maintained on the accrual basis. In developing and evaluating the District's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: ( 1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. We believe that the District's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Each year the District's Board of Directors adopts an annual operating plan. A joint works budget is first prepared that identifies the specific capital projects and operating activities to be undertaken by the District during the year. Upon adoption, District's staff allocates the joint works budget proportionately to each of the individual Revenue Areas and obtains individual Revenue Area budget approval. The budgetary level of control, the level at which expenses cannot exceed budget, is exercised at the individual District, or fund level. The District has adopted a Uniform Purchasing Policy that identifies the agreed upon purchasing standards. V CASH MANAGEMENT The District's investment portfolio, except for the District's debt service reserves, investments with the State Local Agency Investment Fund, and overnight repurchase agreements of idle cash within the District's general bank account, are managed by an outside money manager, Pacific Investment Management Company (PIMCO), who performs the daily investment activities, and by Mellon Trust, who serves as the District's independent custodian bank. This externally managed portfolio consists of a short term investment pool of $66,543,000 at June 30, 2003 that has maturities out to 120 days, and a long- term investment pool of $329,689,000 that has average maturities out to 2.5 years. Investments of this externally managed investment portfolio consist of U.S. Government securities, corporate bonds, commercial paper, and money market mutual funds. Investments of the District's debt service reserves totaling $34.1 million consist of bank investment contracts of $34.0 million with JPMorgan Bank and State Street Bank, maturing on August 1, 2013, and $0.3 million in open-ended mutual funds. Investment earnings for the year were $25,889,000, a decrease of $2,184,000 from the prior fiscal year total of $28,073,000. This decrease is attributable to both lower cash and investment balances and lower yields earned on investments over the prior year. Cash and investment balances declined in FY 2002-03 from the prior year by $38.2 million from $465.3 million to $427 .1 million, or 8.2 percent, while the yields earned on investments declined from 5.96 percent to 5.80 percent during this same time period. Investment income includes changes in the fair value of investments. Increases or"decreases in fair value during the current year do not necessarily represent trends that will continue; nor is it always realistic to realize such amounts, especially in the instance of temporary changes in the fair value of investments. In 1998, the District conducted an in-depth review of its reserve policy. This review included a survey of the reserve policies of 23 other public agencies as a tool to assist in the evaluation of the underlying economic assumptions supporting the District's reserve policy. As of June 30 , 2003, the District's designated retained earnings totaled $427 million, and have been earmarked for the following specific purposes in accordance with the District's reserve policy: Designated For Cash Flow Contingency Designated For Self-Insurance Designated For Capital Improvements Designated For Debt Service Requirements Total Designated Retained Earnings RISK MANAGEMENT $ 100 million 57 million 237 million 33 million $427 million For the year ended June 30, 2003, the District was self-insured for a portion of workers' compensation and property damage. The self-insured portion for workers' compensation is $500,000 per person per occurrence with outside excess insurance coverage to $25 million. The self-insured portion for property damage covering fire, flood, and other perils is $25,000 per occurrence with outside excess insurance coverage to $300 million for fire, flood, and other perils. The District is self-insured for all property damage from the perils of earthquakes. The District also maintains outside comprehensive boiler and machinery insurance with a $100 million per occurrence combined limit with deductibles ranging from $25,000 to $100,000. The District is insured for general liability up to $25 million per occurrence with a self-insured portion of $100,000. District management believes that there are no outstanding claims as of June 30, 2003 that would materially affect the financial position of the District. vi r [ ! L L L L L I L l_ INDEPENDENT AUDIT An audit of the books, financial records and transactions of the District is conducted annually by independent certified public accountants. The District selected the accounting firm of Moreland & Associates, Inc., to perform the audit for the year ended June 30, 2003. The auditors' report on the District's basic financial statements and supplementary information is included in the financial section of this report. This report renders an unqualified opinion on the District's basic financial statements for the year ended June 30, 2003. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers' Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Orange County Sanitation District for the District's comprehensive annual financial report for the year ended June 30, 2002. This was the ninth consecutive year that the District has received this award. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program requirements and we are submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGMENTS This report could not have been accomplished without the dedicated services of the Accounting Division staff, and I would like to especially express my appreciation to Julie Matsumoto who assisted in its preparation. I would also like to thank the District's Boards of Directors, the General Manager, and the Director of Finance for their interest and support in conducting the financial operations of the District in a responsible and progressive manner. Respectfully submitted, ,'.lk/J~f/4 Michael D. White, CPA Controller vii Certificate of Achieven1ent for Excellence in Financial Reporting Presented to Orange County Sanitation District, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2002 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. President ~·/.~ Executive Director viii x· ,_ ~---------==-~ --, p~-----i I California Society of ~unicipal :finance Officers Certificate of Award I ~-7 Outstanding Financial Reporting 2001-2002 I Presented to the Orange County Sanitation District , .......... '"'~~~·~ ...... ~*., ---~':\l,1 t,',~'c-1> -•, Ti,is certificate is issued i11 recog11itio11 of meeti11g professio11al standards a11d criteria i11 reporti11g wi,ic/, reflect a 1,igJ, level of quality i11 tlte ammal fi11a11cial stateme11ts __ ...... -~.t~ ~"Q""j/\:,,i~ • ., __ ~" • ;4 •HI• -'J/t •,, ~ "\ 0 • '• '-r . ~ ~ -~ ~ ·, ~~ .. .,. ,~ .. ..,, . ; \~\ :'~~1 c:~: f-S:; t"~; • ~0 "~: ~ ~ i 'IV, • ~ ~ :~ .... -1' -.-~ ~... !.~ a11d i11 tl,e u11derlyi11g accoimti11g system from wliicJ, tlte reports were prepared. February 24, 2003 -=·1 .. ~•; l ;~",• ~..,,~.,. ,,~:{~· ;#,'l~~~~,~. ·~· •. ~~:("· 1,,,;_,.f -~~-Chair, Professional & Technical Standards Committee Dedicated to Excellence in Municipal Financial Management -=.., ORANGE COUNTY SANITATION DISTRICT Board of Directors Cities: Anaheim Brea Buena Park Cypress AGENCY Fountain Valley Fullerton Garden Grove Huntington Beach Irvine La Habra La Palma Los Alamitos Newport Beach Orange Placentia Santa Ana Seal Beach Stanton Tustin Villa Park Yorba Linda Sanitary/Water Districts: Costa Mesa Sanitary District Midway City Sanitary District Irvine Ranch Water District County Areas: Member of the Board of Supervisors As of June 30, 2003 ACTIVE DIRECTOR Shirley McCracken Roy Moore Patsy Marshall Anna L. Piercy John Collins Don Bankhead Bill Dalton Debbie Cook Beth Krom Steve Anderson Paul Walker Alice B. Jempsa Tod Ridgeway Carolyn Cavecche Norman Z. Eckenrode Alberta Christy Patricia Campbell Brian Donahue Tony Kawashima Robert McGowan Michael Duvall James M. Ferryman Joy Neugebauer Brian Brady Jim Silva X AL TERNA TE DIRECTOR Bob Hernandez John Beauman Jim Dow Tim Keenan Larry Crandall Leland Wilson Bruce Broadwater Connie Boardman Christina Shea Steve Simonian Larry Herman Marilynn M. Poe Don Webb Steve Ambriz Constance Underhill Mike Garcia Paul Yost David Shawver Doug Davert Richard A. Freschi Keri Lynn Wilson Arlene Schafer Grace Epperson Darryl Miller Chuck Smith ADMINISTRATION ADMINISTRATIVE SERVICES COMMUNICATIONS ~ [ HUMAN RESOURCES AND EMPLOYEE DEVELOPMENT HUMAN ~ RESOURCES ADMINISTRATION EMPLOYEE ~ DEVELOPMENT/ TRAINING SAFETY & I-HEALTH HUMAN RESOURCES ~ ORANGE COUNTY SANITATION DISTRICT Organizational Chart FINANCE FINANCE I-ADMINISTRATION ACCOUNTING I- PURCHASING & I-WAREHOUSE June 30, 2003 BOARD OF DIRECTORS INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY -ADMINISTRATION CUSTOMER& I-NETWORK SUPPORT PROGRAMMING ,_ &DATABASE SYSTEMS PROCESS CONTROLS -INTEGRATION xi GENERAL COUNSEL OFFICE OPERATIONS & MAINTENANCE OPERATIONS & MAINTENANCE ,_ ADMINISTRATION REGIONAL I-ASSETS AND SERVICES FACILITIES ,_ MAINTENANCE SERVICES PROCESS ENGINEERING ,- PLANTN0.1 OPERATIONS - PLANT NO. 2 OPERATIONS ,_ MECHANICAL MAINTENANCE & -POWER PRODUCTION ELECTRICAL & ,_ INSTRUMENTATION MAINTENANCE AJR QUALITY & ~ SPECIAL PROJECTS TECHNICAL SERVICES TECHNICAL SERVICES t-ADMINISTRATION ENVIRONMENTAL t-COMPLIANCE & MONITORING ENVIRONMENTAL ,-SCIENCES LABORATORY SOURCE CONTROL - ENGINEERING ENGINEERING I-ADMINISTRATION PLANNING ,_ PROJECT I-MANAGEMENT OFFICE ENGINEERING & I-CONSTRUCTION Pacifi~ Occ&o Reclamation Plant No.1 N Treatment Plant No. 2 + • OCSO Pump Station C Unlncorpor9ted Areas (white) ORANGE COUNTY SANITATION DISTRICT Map of Service Area June 30, 2003 LOS ANGELES COUNTY xii Orange County Sanitation District (OCSD) Orange County, CA Rev.1999 r r r l l L L ' L [ L L L L Moreland &~ dn<¼ CERTIFIED PUBLIC ACCOUNTANTS August28,2003 The Honorable Board of Directors of the Orange County Sanitation District Independent Auditors' Report 1201 DOVE STREET, SUITE 680 NEWPORT BEACH, CALIFORNIA 92660 (949) 221-0025 570 RANCHEROS DRIVE, SUITE 260 SAN MARCOS, CA 92069 (760) 752-3390 We have audited the accompanying basic financial statements of the Orange County Sanitation District (District), as of and for the year ended June 30, 2003, as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statem~nts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the basic financial statements referred to above presently fairly, in all material respects, the financial position of the District as of June 30, 2003, and the changes in financial position and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued a report dated August 28, 2003 on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions of laws regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The management's discussion and analysis identified in the accompanying table of contents is not a required part of the basic financial statements, but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain, limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the basic financial statements of the District. The introductory section, supplementary information, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. 1 (THIS PAGE INTENTIONALLY LEFT BLANK) 2 L Management Discussion and Analysis June 30, 2003 This section of the financial statements of the Orange County Sanitation District (District) is management's narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2003. The information presented here is to be considered in conjunction with additional information provided within the letter of transmittal located in the Introductory Section of this report. Financial Highlights • As of June 30, 2003, the assets of the District exceeded its liabilities by $1,010.3 million (net assets). Of this amount, $396.5 million (unrestricted net assets) may be used to meet the District's ongoing obligations to citizens and creditors. • The District's total net assets increased $36.4 million, or 3.7 percent over the year. • Net Capital Assets increased $66.0 million, or 7.6 percent over the prior year. • Unrestricted Net Assets declined $39.4 million, or 9.0 percent from the prior year. Overview of the Basic Financial Statements The District operates as a utility enterprise and presents its financial statements using the economic resources measurement focus and the full accrual basis of accounting. As an enterprise fund, the District's basic financial statements comprise two components: financial statements and notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. In accordance with Governmental Accounting Standards Board (GASS) Statement No. 34, the District's financial statements include a statement of net assets, statement of revenues, expenses and changes in net assets, and a statement of cash flows. The statement of net assets includes all of the District's assets and liabilities and provides information about the nature and amounts of investments in resources (assets) and the obligations to District creditors (liabilities). It also provides for the basis for computing rate of return, evaluating capital structure of the District and assessing the liquidity and financial flexibility of the District. The statement of revenues, expenses, and changes in net assets accounts for the current year's revenues and expenses. This statement measures the success of the District's operations over the past year and can be used to determine the District's creditworthiness. It also highlights the District's dependency on property tax revenues in supplementing user fees and other charges for recovering total costs. The final required financial statement is the statement of cash flows. The statement reports cash receipts, cash payments, and net changes in cash resulting from operations and investments during the reporting period. Net Assets As previously stated, net assets increased $36.4 million, or 3.7 percent to $1,010.3 million in FY 2002-03 over the prior year. In comparison, net assets increased $27.0 million, or 2.9 percent, to $974.0 million in FY 2001-02 over FY 2000-01 . 3 Percentage June 30, June 30, Increase Increase 2003 2002 {Decrease} {Decrease} Assets Current and other assets $ 465,661 $ 504,957 $ (39,296) -7.8% Capital assets, net 940,000 874,006 65,994 7.6% Total assets 1,405,661 1,378,963 26,698 1.9% Liabilities Long-term debt outstanding 353,843 364,909 (11,066) -3.0% Other liabilities 41,471 40,080 1,391 3.5% Total liabilities 395,314 404,989 (9,675) -2.4% Net assets: Investment in capital assets, net of related debt 578,647 501,997 76,650 15.3% Restricted 35,182 36,071 (889) -2.5% Unrestricted 396,518 435,906 (39,388) -9.0% Total net assets $ 1,010,347 $ 973,974 $ 36,373 3.7% Current and other assets decreased $39.3 million, or 7.8 percent, due primarily to the funding of the $66.0 million in capital improvements in FY 2002-03. Capital assets, net increased $66.0 million, or 7 .6 percent, due primarily to the continuing capital improvement program that includes construction of 16 new primary clarifiers at Plant No. 1 that will add 96 million gallons per day of primary treatment capacity. In FY 2002-03, $30.4 million of the estimated $88.6 million construction cost for this project was incurred with completion expected in FY 2006-07. Another major project underway is the replacement of the 54-inch diameter trunk sewer on Bushard Avenue from Plant No. 2 to Ellis Avenue with a 21,500 foot, 108-inch concrete sewer. In FY 2002-03, $7.2 million of the estimated $39.4 million construction cost for this project was incurred with completion expected in FY 2005-06. The Groundwater Replenishment System (GWRS) is another ongoing construction project. GWRS is a 50/50 joint cost sharing effort of the Orange County Sanitation District and the Orange County Water District that will initially provide 78,400 acre-feet per year of reclaimed water for replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion barrier at a cost of $472.4 million. The District incurred $5.1 million in construction during FY 2002-03 for this project that has a projected completion date in FY 2006-07. See page 7 for the Schedule of Capital Assets and a listing of the other major capital additions for FY 2002-03. Net assets invested in capital assets, net of related debt increased $76. 7 million, or 15.3 percent over the prior year primarily as a result of the $66.0 million increase in net capital assets over the prior year, as referred to above, as well as the $10.7 million decline in the net outstanding debt issued to acquire capital assets due to debt payments. 4 r r r r r f L L L L [ L L Changes in Net Assets The increase in net assets for FY 2002-03 was $36.4 million, an increase of 34.6 percent from the prior year's increase. June 30, June 30, Increase Increase 2003 2002 (Decrease) (Decrease) Revenues: Operating revenues $ 89,164 $ 80,005 $ 9,159 11.4% Non-operating revenues 81 ,332 81,975 (643) -0.8% Total revenues 170,496 161,980 8,516 5.3% Expenses: Operating expense other than depreciation and amortization 79,669 68,563 11,106 16.2% Depreciation and amortization 43,695 46,990 (3,295) -7.0% Non-operating expense 13,925 22,014 (8,089) -36.7% Total expenses 137,289 137,567 (278) -0.2% Income before capital contributions 33,207 24,413 8,794 36.0% Capital contributions (distributions), net 3,166 2,600 566 21.8% Increase in net assets 36,373 27,013 9,360 34.6% Beginning net assets 973,974 946,961 27,013 2.9% Ending net assets $ 1,010,347 $ 973,974 $ 36,373 3.7% As previously stated, an enterprise fund is used to account for the operations of the District, which is financed and operated in a manner similar to private business enterprises. This allows the District to determine that the costs (expenses, including depreciation and amortization) of providing wastewater management services on a continuing basis are financed or recovered primarily through user charges. Sources of Revenue June 30, 2003 l!IUser Fees • Taxes Levied •Interest •Other 6% 5 Functional Expenses June 30, 2003 9% 10% 32% Ii Collections • Treatment & Disposal D Depreciation & Amortization •Interest Expense Sewer service fees are evaluated annually based primarily on budget requirements for total operation, maintenance and capital expenditures for providing wastewater management services. Property tax revenues are dedicated for the payment of debt service. In FY 2002-03, operating revenues increased $9.2 million, or 11.4 percent over the prior year, reflective of the $9.0 million, or 11.3 percent increase in service charges. The increase in service charges is primarily due to (1) the increase in the average sewer user fee rate of 9.4 percent over the prior year, (2) the increase in residential and non-residential construction of $3.75 billion during FY 2002-03, and (3) the increase in percentage of total property tax and user fees collected by the County to the total levy from 99.78 percent in FY 2001-02 to 99.88 percent in FY 2002-03. The 0.8 percent decrease in non-operating revenues includes a $2.2 million, or 7.8 percent decline in investment and interest income and a $1.5 million 68.0 percent decline in other non-operating revenue, offset somewhat by a $3.5 million, or 8.4 percent increase in property tax revenues. This decrease in investment and interest income is attributable to both lower cash and investment balances and lower yields earned on investments over the prior year. Cash and investment balances declined in FY 2002-03 from the prior year by $38.2 million from $465.3 million to $427.1 million, or 8.2 percent, while the yields earned on investments declined from 5.96 percent to 5.80 percent during this same time period. The $3.5 million increase in property tax revenues is reflective of the continuing upturn in the real estate market as total assessed valuations have also increased over the prior year by 8.2 percent. The $1.5 million decline in other revenue is attributable to a non-recurring adjustment in retirement obligations in FY 2001-02. Of the 16.2 percent increase in operating expense before depreciation and amortization, collection system operating activities decreased 32.6 percent, or $6.3 million, while treatment and disposal operating expenses increased by 25.8 percent, or $13.7 million. The decline in collection system operating activities is attributable to the reduction in supplies, repairs, and maintenance cost of $3.4 million, or 54.1 percent from the prior year due to the repair costs of a force main in FY 2001-02. The increase in treatment and disposal operating expenses is primarily due to the increase in supplies, repairs, and maintenance of $8.6 million, or 301.6 percent, the increase in contractual services of $1.9 million, or 17.2 percent, and the increase in salaries and benefits of $3.2 million, or 10.5 percent. The increase in supplies, repairs, and maintenance is primarily attributable to the policy decision made by the District's Board of Directors to fully disinfect the effluent discharged out the District's ocean outfall that required additional chemicals of $5.7 million over the prior year. The increase in contractual services is primarily attributable to the $1.1 million increase in biosolid removal cost based on the Board of Directors' decision to optimize the existing secondary treatment facilities to achieve the highest possible treatment standards. Although salaries and benefits expense increased $3.2 million, or 10.5 percent within the treatment and disposal activities, they decreased slightly by $0.1 million, or 3.1 percent, within the collection activities. This net increase of $3.1 million in salaries and benefits operating expense is part of the overall increase in District salaries and benefits of $4.5 million when including salaries and benefits capitalized within the capital improvement program. Including salaries and benefits capitalized within construction projects, total District salaries and benefits were $47.3 million, a 10.5 percent increase from the prior year. This increase is attributable to the addition of 30 full time equivalent employees over the prior year that were necessary to support the District's decision to disinfect the ocean discharge and to optimize the existing secondary treatment facilities to achieve the highest possible treatment standards. The 36.7 percent, or $8.1 million decrease in non-operating expense is comprised of a decrease of $1.7 million, or 11.6 percent in interest expense, a decrease of $2.7 million, or 69.6 percent in capital grants to member agencies, and a $3.7 million, or 99.3 percent decrease in other non-operating expense. The $1.7 million reduction in interest expense is the result of the favorable decline in the daily and weekly interest rates on the District's variable rate certificates of participation debt program that fell from a composite average of 1.54 percent in FY 2001-02 to a composite average of 1.17 percent in FY 2002-03. 6 ( L A total of $1.2 million in capital grants was provided to member agencies for funding the repair and replacement of local sewers owned and maintained by member agencies in order to reduce rainfall induced inflow and infiltration into the District's treatment facilities. The District trunk sewers comprise roughly three percent of the overall length of sewers in the District's service area. The remaining 97 percent are private and local agency owned smaller diameter sewers and laterals. The $3.7 million decrease in other non-operating expense is attributable to the obsolescence of unusable inventory and expensing capacity rights that had expired in FY 2001-02. The net increase in capital contributions of $0.6 million, or 21.8 percent, is attributable to payments received by the Irvine Ranch Water District for their increased equity share in treatment plant facilities. Capital Assets At June 30, 2003, the District had a net investment of $940 million in capital assets. This amount represents a net increase (including additions and deletions) of $66.0 million, or 7.6 percent over the prior year. (Dollars in thousands) Percentage June 30, June 30, Increase Increase 2003 2002 (Decrease) (Decrease) Land $ 10,399 $ 10,399 $ 0.0% Construction in Progress 244,214 177,713 66,501 37.4% Sewage collection facilities 245,997 244,721 1,276 0.5% Sewage treatment facilities 333,885 333,717 168 0.1% Sewage disposal facilities 52,365 54,646 (2,281) -4.2% General and administrative facilities 53,140 52,810 330 0.6% Capital assets, net $ 940,000 $ 874,006 $ 65,994 7.6% Major capital asset additions for the current fiscal year included the following: • $30.4 million on the construction of 16 Additional Primary Clarifiers at Plant No. 1 • $ 8.2 million on Area Classification Studies • $ 7.2 million on the Bushard Trunk Sewer Rehabilitation • $ 5.5 million on the Headworks Improvements at Plant No. 2 • $ 5.2 million on the Investigation and Repair of Ocean Outfall • $ 5.1 million on the Ground Water Replenishment System • $ 4.0 million on the Short term Outfall Bacteria Reduction • $ 3.5 million on the Standby Power and Reliability Modifications • $ 2.5 million on the Solids Storage and Truck Loading Facility The District's FY 2003-04 capital budget forecasts spending of $200.0 million with a total CIP budget-to- completion of $2.5 billion. More detailed information about the District's capital assets is provided in Notes 1 and 3 of Notes to the Financial Statements. 7 Debt Administration At June 30, 2003, the District had $365.0 million outstanding in certificates of participation (COP), a net decrease of $11.0 million, or 2.9 percent from the prior year. This decrease is due to the installment payments made by the District as no new long-term debt was issued. The District maintains an Aa3 from Moody's Investor Services, an AA/A-1 from Standard and Poor's Corporation, and an AA from Fitch. The District's long-range financing plan is designed to maintain these high ratings. Over the next ten years, the District is projecting an additional $2.2 billion in future treatment plant and collection system capital improvements. In accordance with the District's long-term debt fiscal policy, the District will restrict long-term borrowing to capital improvements that cannot be financed from current revenue. In August 2003, the District issued $280 million of new COP fixed rate debt as reimbursement for capital improvements constructed over the past three years, and a share of those to be constructed over the next two years. A total of $1.1 billion in COP debt issuance is being proposed over the next ten years with a new issuance scheduled for every other year. These financings are needed early in the 20-year capital improvement program because the bulk of the construction is scheduled during the next ten years. Economic Factors and Next Year's Budgets and Rates • The unemployment rate within the County of Orange is currently 4.0 percent, which is a decrease from a rate of 4.1 percent a year ago. • Inflation for Orange County in FY 2003-04 is projected to be 2.7 percent based on the 2002 projected percentage change in consumer price index obtained from the December 2002 Economic and Business Review report prepared by Chapman University. • Projected rate of return on investments was decreased from the 5.80 percent earnings rate in FY 2002-03 to 4.0 percent for FY 2003-04. All of these factors were considered in preparing the District's budget for FY 2003-04. The District user fee schedule was increased by 14.3 percent for FY 2003-04 over the prior year. The fee applicable to the District's largest customer base, the single-family residential fee, increased annually $12.50 from $87.50 to $100.00. These rate increases were necessary to finance the District's cash flow needs as capital improvement outlays alone increased 29.5 percent to $200.0 million, and are projected to total $2.2 billion over the next 1 O years in order to rehabilitate and upgrade existing facilities and provide for full secondary treatment standards. Requests for Information The financial report is designed to provide a general overview of the District's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department, Orange County Sanitation District, P.O. Box 8127, Fountain Valley, CA 92728-8127. 8 I L ORANGE COUNTY SANITATION DISTRICT BASIC FINANCIAL STATEMENTS 9 ORANGE COUNTY SANITATION DISTRICT Statement of Net Assets June 30, 2003 (With Comparative Data for June 30, 2002) Current assets: Cash and cash equivalents Investments Accounts receivable, net of allowance for uncollectibles Accrued interest receivable Due from other governmental agencies Connection fees receivable Property tax receivable Inventories Prepaid and other assets Total current assets Noncurrent assets: Restricted: Cash and cash equivalents Investments Accrued interest receivable Unrestricted: Capital assets, net Deferred charges Excess purchase price over book value on acquired assets, net Other assets, net Total noncurrent assets Total assets Current liabilities: Accounts payable Accrued expenses Retentions payable Interest payable Current portion of long-term obligations Total current liabilities Noncurrent liabilities: Noncurrent portion of long-term obligations Total liabilities Net assets: Invested in capital assets, net of related debt Restricted for debt service Unrestricted Total net assets See Accompanying Notes to Basic Financial Statements. 10 2003 $ 7,142,459 385,300,317 7,646,687 4,103,715 1,635,825 917,859 1,289,484 4,882,228 876,702 413,795,276 2,938,113 31,709,443 534,038 939,999,879 1,843,374 8,797,947 6,043,422 991,866,216 1,405,661,492 16,029,577 5,479,532 1,428,429 3,073,632 15,459,439 41,470,609 353,843,588 395,314,197 578,647,534 35,181,594 396,518,167 $1,010,347,295 2002 $ 149,889,829 279,796,096 9,211,697 3,629,425 3,090,263 1,460,201 1,066,242 4,261,509 903,427 453,308,689 551,400 35,013,427 505,919 874,005,916 1,956,177 9,455,656 4,166,023 925,654,518 1,378,963,207 13,958,885 6,252,998 964,054 3,266,440 15,638,321 40,080,698 364,908,824 404,989,522 501,997,165 36,070,746 435,905,774 $ 973,973,685 [ ORANGE COUNTY SANITATION DISTRICT Statement of Revenues, Expenses, and Changes in Net Assets For the Year Ended June 30, 2003 (With Comparative Data for the Year Ended June 30, 2002) Operating revenues: Service charges Permit and inspection fees Total operating revenues Operating expenses other than depreciation and amortization: Salaries and benefits Utilities Supplies, repairs and maintenance Contractual services Directors' fees Meetings and training Other Total operating expenses other than depreciation and amortization Operating income before depreciation and amortization Depreciation and amortization Amortization of excess purchase price over book value on acquired assets Operating loss Non-operating revenues: Property taxes Investment and interest income Connection fees Other Total non-operating revenues Non-operating expenses: Interest Capital grants to member agencies Other Total non-operating expenses Income before capital contributions Capital contributions from other agencies Change in net assets Total net assets -beginning Total net assets -ending See Accompanying Notes to Basic Financial Statements. 11 2003 $ 88,640,114 523,866 89,163,980 38,732,528 4,622,254 14,383,290 15,958,742 139,751 999,103 4,833,132 79,668,800 9,495,180 43,036,601 657,709 (34,199,130) 44,591,496 25,888,943 10,145,758 705,706 81 ,331 ,903 12,731,179 1,168,254 26,010 13,925,443 33,207,330 3,166,280 36,373,610 973,973,685 $1,010,347,295 2002 $ 79,609,023 395,931 80,004,954 35,628,682 4,967,535 9,164,056 13,933,729 146,014 724,158 3,999,043 68,563,217 11,441,737 46,332,349 657,709 (35,548,321) 41,139,450 28,073,413 10,560,167 2,202,455 81,975,485 14,406,429 3,837,510 3,770,753 22,014,692 24,412,472 2,600,045 27,012,517 946,961,168 $973,973,685 ORANGE COUNTY SANITATION DISTRICT Statement of Cash Flows For the Year Ended June 30, 2003 (With Comparative Data for the Year Ended June 30, 2002) Cash flows from operating activities: Receipts from customers and users Payments to employees Payments to suppliers Net cash provided by operations Cash flows from noncapital financing activities: Connection fees Proceeds from property taxes Grants to member agencies Net cash provided by noncapital financing activities Cash flows from capital and related financing activities: Additions to property, plant and equipment Disposal of property, plant, and equipment Additions to other assets Disposal of other assets Interest paid Principal payments on certificates of participation Proceeds from capital contributions Net cash used by capital and related financing activities Cash flows from investing activities: Proceeds from the sale of investments Purchases of investments Interest received Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Reconciliation of operating loss to net cash provided by operating activities: Operating loss Adjustments to reconcile operating loss to net cash provided by operations: Depreciation and amortization Other non-operating revenues and expenses (lncrease)/decrease in operating assets: Accounts receivable Due from other governmental agencies Inventories Prepaid and other assets lncrease/(decrease) in operating liabilities: Accounts payable Accrued expenses Retentions payable Arbitrage payable Compensated absences Claims and judgments Net cash provided by operations Noncash Activities: Unrealized gain on the fair value of investments Disposal of assets with no cash effect See Accompanying Notes to Basic Financial Statements. 12 2003 $ 93,042,680 (38,388,953) (40,025,486) 14,628,241 10,688,100 44,368,254 {1,168,254) 53,888,100 (112,913,330) 523,794 (2,231) 2,231 (11,661,494) (11,024,999) 3,012,734 (132,063,295) 4,324,857,132 {4,425,681,766) 24,010,931 (76,813,703) (140,360,657) 150,441,229 $ 10,080,572 $ (34,199,130) 43,694,310 746,185 1,565,010 1,607,984 (99,535) 26,725 2,070,692 (773,466) 464,375 (283,170) 220,885 ~412,624) $ 14,628,241 $ 1,375,603 (66,489) 2002 $ 76,603,626 (36,026,686) (27,208,290) 13,368,650 9,479,824 41,092,705 (3,837,510) 46,735,019 (83,857,457) 3,531,584 (4,147) 4,147 (13,146,377) (10,370,000) 1,780,499 (102,061,751) 1,779,710,290 (1,687,990,859) 29,209,472 120,928,903 78,970,821 71,470,408 $ 150,441,229 $ (35,548,321) 46,990,058 1,273,694 (4,626,401) (960,354) 652,572 (10,426) 2,372,948 1,742,186 664,161 587,390 192,950 38,193 $ 13,368,650 $ 1,421,443 2,841,992 { I L ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 (1 ) Summ ary of Significant Accounting Policies Reportind Entity The Orange County Sanitation District (District) is a public agency which owns and operates certain wastewater facilities in order to provide regional wastewater collection, treatment, and disposal services to approximately 2.4 million people in the northern and central portion of the County of Orange, California. The District is managed by an administrative organization comprised of directors appointed by the agencies and cities which are serviced by the District. The District's service area was originally formed in 1954 pursuant to the County Sanitation District Act and consisted of seven independent special districts. Two additional districts were formed and additional service areas were added in 1985 and 1986. These special districts were jointly responsible for the treatment and disposal facilities which they each used. In April of 1998, the Board of Supervisors of Orange County passed Resolution 98-140 approving the consolidation of the existing nine special districts into a new, single sanitation district. This action was taken in order to simplify the governance structures, reduce the size of the District's Board of Directors, ease administrative processes, streamline decision-making and consolidate accounting and auditing processes. Pursuant to the Resolution and Government Code Section 57500, the predecessor special districts transferred and assigned all of their powers, rights, duties, obligations, functions and properties to the District, including all assets, liabilities, and equity. Effective July 1, 1998, the organization became known as the Orange County Sanitation District. The boundaries of two of the previous districts have been maintained for the purpose of collecting sewer user fees at the previously established rate schedules and are known as Revenue Area No. 7 and Revenue Area No. 14. The boundaries of the other seven districts have been consolidated and are collectively referred to as the Consolidated Revenue Area. The District utilizes joint operating and capital outlay accounts to pay joint operating and construction costs of the revenue areas. These joint costs are allocated to each revenue area based on gallons of sewage flow. The accompanying financial statements present the District and its blended component unit, the Orange County Sanitation District Financing Corporation. The Corporation is a legally separate entity although in substance it is considered to be part of the District's operations. The District is considered to be financially accountable for the Corporation which is governed by a board comprised entirely of the District's board members. There is no requirement for separate financial statements of the Corporation; consequently, separate financial statements for the Corporation are not prepared. The Corporation had no financial activity during the fiscal year ended June 30, 2003, other than principal and interest payments on certificates of participation which were issued in prior years (see Note 4). The District is independent of and overlaps other formal political jurisdictions. There are many governmental entities, including the County of Orange, that operate within the District's jurisdiction; however, financial information for these entities is not included in the accompanying financial statements in accordance with the provisions of Governmental Accounting Standards Board (GASB) Statement 14. Measurement Focus and Basis of Accounting The District operates as an enterprise activity. Enterprise funds account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the Board of Directors is that the costs (expenses, including depreciation and amortization) of providing services to the general public on a continuing basis be financed or recovered primarily through user charges. (Continued) 13 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Enterprise funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting, whereby revenues are recognized when earned and expenses are recognized when incurred, regardless of the timing of related cash flows. The District applies all GASB pronouncements currently in effect as well as Financial Accounting Standards Board Statements and Interpretations, Accounting Principal Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedure issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. Operating Plans Each year, District staff prepares an annual operating plan which is adopted by the Board of Directors. The annual operating plan is used to serve as a basis for monitoring financial progress, estimating the levy and collection of taxes, and determining future service charge rates. During the year, these plans may be amended as circumstances or levels of operation dictate. Cash Equivalents Investments with original maturities of three months or less are considered to be cash equivalents. Investments All investments are stated at fair value (the value at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale). Changes in fair value that occur during the fiscal year are reported as part of investment and interest income. Investment and interest income includes interest earnings and realized and unrealized changes in fair value. Accounts Receivable Accounts receivable is shown net of the allowance for uncollectibles which was $133,715 at June 30, 2003. Any unbilled sewer service receivables are recorded at year-end. Inventory Inventory is stated at cost, which approximates market, on a weighted-average basis. Property, Plant and Equipment Outlays for property, plant, equipment, and construction in progress are recorded in the revenue area which will use the asset. Such outlays may be for individual revenue area assets or for a revenue area's share of joint assets. Capital assets of property, plant, and equipment are defined by the District as assets with an initial, individual cost of more than $1,000 and an estimated useful life in excess of three years. Such assets are recorded at cost, except for assets acquired by contribution, which are recorded at fair market value at the time received. Cost includes labor; materials; outside services; vehicle and equipment usage; allocated indirect charges such as engineering, purchasing, supervision and other fringe benefits; and certain administrative and general expenses. Net interest costs are capitalized on projects during the construction period. There were no capitalized interest costs during the fiscal year ended June 30, 2003. Amortization of previously capitalized interest was $893,900 during the fiscal year ended June 30, 2003. Depreciation of plant and equipment is provided for over the estimated useful lives of the assets using the straight-line method. The District generally follows the guidelines of estimated useful lives as recommended in the State of California Controller's Uniform System of Accounts for Waste Disposal Districts, which range from 3 to 75 years. The following are estimated useful lives (Continued) 14 i I l l L t L L L. ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 for major classes of depreciable assets: Sewage collection facilities -50 years, Sewage treatment facilities -40 years, Sewage disposal facilities -40 years, and General plant and administrative facilities -11.5 years. Amortization Amortization of the excess purchase price over the book value of assets acquired is provided using the straight-line method over an estimated useful life of 30 years. Discounts and deferred charges on the certificates of participation are amortized to interest expense over the respective terms of the installment obligations based on their effective interest rates (note 4). Restricted Assets Certain assets are classified as restricted because their use is limited by applicable debt covenants. Specifically, the assets are restricted for installment payments due on certificates of participation or are maintained by a trustee as a reserve requirement for the certificates of participation. When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first, then unrestricted resources as they are needed. Compensated Absences The District's employees, other than operations and maintenance personnel, are granted vacation and sick leave in varying amounts with maximum accumulations of 200 hours and 560 hours for vacation and sick days earned but unused, respectively. Operations and maintenance personnel accrue "Personal Leave" at a rate of between 60 and 200 hours per year depending on years of service. Personal leave can be accumulated up to a maximum of 400 hours. Vacation and sick leave benefits and personal days are recorded as an expense and liability when earned by eligible employees. In determining the estimated sick leave liability at June 30 of each year, the District assumes that all employee's accumulated sick leave balances will ultimately be paid out at 35 percent of the ending balance. The distribution between current and long-term portions of the liability are based on historical trends. Claims and Judgments The District records estimated losses, net of any insurance coverage under its self-insurance program when it is probable that a claim liability has been incurred and when the amount of the loss can be reasonably estimated. Claims payable includes an estimate for incurred but unreported claims. The distribution between current and long-term portions of the liability are based on historical trends. Property Taxes The County is permitted by State law (Proposition 13) to levy taxes at 1 % of full market value (at time of purchase) and can increase the assessed value no more than two percent per year. The District receives a share of this basic levy, proportionate to what was received in the 1976 to 1978 period. Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments which become delinquent after December 10 and April 10. The County bills and collects the property taxes and remits them to the District in installments during the year. Property tax revenues are recognized when levied to the extent that they are available to finance current operations. The Board of Directors has designated property tax revenue to be used for the annual debt service requirements prior to being used as funding for current operations. (Continued) 15 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 Connection Fee Revenue Connection fees represent fees received from developers and residents to join new or to extend existing trunk sewer systems in excess of the cost to connect. These fees may be used for operating or capital purposes. Capital Contributions Capital contributions consist of charges to certain special districts and agencies for their agreed- upon share of additions to capital assets. Operating and Non-operating Revenues and Expenses Operating revenues and expenses result from collecting, treating, and disposing of wastewater and inspection and permitting services. The District's operating revenues consist of charges to customers for the services provided. Operating expenses include the cost of providing these services, administrative expenses, and depreciation and amortization expenses. All revenues and expenses not meeting these definitions and which are not capital in nature are reported as non- operating revenues and expenses. Self-Insurance Plans For the year ended June 30, 2003, the District was self-insured for portions of workers' compensation, property damage, and general liability. The self-insurance portion of workers' compensation is $500,000 per person per occurrence with outside excess insurance coverage to $25 million. The self-insured portion for property damage covering fire is 5 percent of insurance subject to $100,000, and $25,000 for flood and all other perils per occurrence with outside excess insurance coverage to $300 million. The District is self-insured for all property damage from the perils of earthquakes. The District also maintains outside comprehensive boiler and machinery insurance with a $100 million per occurrence combined limit with deductibles ranging from $25,000 to $100,000. The District is self-insured for general liability coverage up to $100,000 with excess general liability coverage to $25 million per occurrence. There were no significant changes in insurance coverage during the fiscal year ended June 30, 2003. During the past three fiscal years there have been no settlements in excess of covered amounts. Claims against the District are processed by outside insurance administrators. These claims are charged to claims expense based on amounts which will ultimately be paid. Claims incurred but not yet reported have been considered in determining the accrual for loss contingencies. District management believes that there are no unrecorded claims as of June 30, 2003 that would materially affect the financial position of the District. Deferred Compensation Plan The District offers its employees a deferred compensation plan established in accordance with Internal Revenue Code Section 457. The plan permits all employees of the District to defer a portion of their salary until future years. The amount deferred is not available to employees until termination, retirement, death or for unforeseeable emergency. The assets of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries. Since the plan assets are administered by an outside party and are not subject to the claims of the District's general creditors, in accordance with GASS Statement 32, the plan's assets and liabilities are not included within the District's financial statements. (Continued) 16 r ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 New Accounting and Reporting Requirements The District is required to newly apply GASB Technical Bulletin No. 2003-1, "Disclosure Requirements for Derivatives Not Reported at Fair Value on the Statement of Net Assets," for the fiscal year ending June 30, 2003. The Technical Bulletin requires additional information to be disclosed about the swap agreements related to the District's Certificates of Participation. These disclosures have been included in Note 5. Reclassifications Certain reclassifications have been made to the prior year data to conform to the current year's presentation. (2) Cash and Investments The District follows the practice of pooling cash and investments of all funds except for cash held by fiscal agents. Interest income earned on pooled cash and investments is allocated to the various funds based on month-end cash and investment balances. Interest income from cash and investments of funds excluded from pooled cash and investments is recorded directly to the related fund. Deposits Deposits in banks are maintained in financial institutions which provide deposit protection on the bank balance from the Federal Depository Insurance Corporation. The California Government Code requires California banks and savings and loans to secure local government deposits by pledging government securities equal to 110% of the deposits or by pledging first trust deed mortgage notes equal to 150% of the deposits. Deposits are categorized as follows, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 3, to give an indication of the level of credit risk assumed by the District at year-end. Category 1-Insured or collateralized with securities held by the District or by its agent in the District's name. Category 2-Collateralized with securities held by the financial institution's trust department or agent in the District's name. Category 3-Uncollateralized or collateralized but the pledged securities are not held in the District's name. Investments Statutes authorize the District to invest in obligations of the U.S. Government, state and local governmental agencies, negotiable certificates of deposit, bankers acceptances, commercial paper, reverse repurchase agreements, and a variety of other investment instruments which are allowable under the California Government Code section 53600 et seq. Investments are categorized as follows, in accordance with GASB Statement No. 3, to give an indication of the level of credit risk assumed by the District at year-end. Category 1-Insured or registered, or securities held by the District or its agent in the District's name. Category 2-Uninsured and unregistered, with securities held by the purchasing financial institution's trust department or agent in the District's name. Category 3-Uninsured and unregistered, with securities held by the purchasing financial institution's trust department or agent but not in the District's name. (Continued) 17 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 Investments Not Subject to Categorization Investments in the California Local Agency Investment Fund (LAIF) are not categorized as GASS Statement No. 3 does not require categorization of investment pools managed by another government. Also, cash held by trustees is not categorized because the underlying assets of the funds are invested within open-ended mutual funds. Decisions regarding these investments are made by fiscal agents for the District who are acting in accordance with agreements entered into with the District. All such investments are not required to be categorized under interpretive guidelines issued by the GASS. The District is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the District's investment in this pool is reported in the accompanying financial statements at amounts based upon the District's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. The management of LAIF has indicated to the District that as of June 30, 2003 the amortized cost of the pool was $55,429,568,408 and the fair value of the pool was $55,587,336,494. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, and floating rate securities issued by federal agencies, government-sponsored enterprises, and corporations. A summary of deposits and investments as of June 30, 2003, is categorized as follows: June 30, 2003 Carrying Amount Bank Deposits: Unrestricted Restricted Bal ance Category Demand cash accounts $ 114,494 $ $ 961,360 2 Cash held by fiscal agents 293,135 3 Bank investment contracts: -with JPMorgan Chase Bank 4,290,000 4,290,000 3 -with US Bank 29,728,427 29,728,427 3 Total Deposits 114,494 34,311,562 $ 34,979,787 Investments: Cash and investments with LAIF 427 N/A U.S. government securities 291,919,767 1 Commercial paper 998,897 1 Corporate bonds/notes 88,742,069 1 Mutual funds 10,667,122 N/A Investments held with fiscal agents: -mutual funds 335,994 N/A Total Investments 392,328,282 335,994 Total Carrying Amount $ 392,442,776 $ 34,647,556 Cash and cash equivalents and investments as reported on the statement of net assets: Cash and cash equivalents $ 7,142,459 $ 2,938,113 Investments 385,300,317 31 ,709,443 $ 392,442,776 $ 34,647,556 (Continued) 18 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 Although the bank investment contract with US Bank is classified as category 3, the depositor, AIG Matched Funding Corporation, is required to pledge collateral in an amount equal to 103% of the amount of the investment contract if the long-term, unsecured, unsubordinated debt securities of AIG fall below a S&P rating of "AA-" or below a Moody's rating of "Aa3". At June 30, 2003, the U.S. Government Securities investments included mortgage-backed securities totaling $184,810,063, and the U.S. Government Securities and Corporate Bond investments included floating-rate notes totaling $12,898,432. (3) Property, Plant. Equipment and Construction in Progress Capital asset activity for the year ended June 30, 2003 is as follows: Capital assets not depreciated: Cost: Land Construction in progress Total nondepreciable assets Depreciable capital assets: Cost: Sewage collection facilities Sewage treatment facilities Sewage disposal facilities General and administrative facilities Subtotal Accumulated depreciation: Sewage collection facilities Sewage treatment facilities Sewage disposal facilities General and administrative facilities Subtotal Net depreciable assets Net capital assets Balance at June 30, 2002 $ 10,398,595 177,712,942 188,111,537 386,202,814 627,673,508 90,161,860 122,415,790 1,226,453,972 (141,481,684) (293,956,135) (35,516,075) (69,605,699) (540,559,593) 685,894,379 Additions $ 4,405 110,667,007 110,671,412 10,242,319 24,687,656 76,785 7,160,094 42,166,854 Deletions Balance at June 30, 2003 $ (4,405) $ 10,398,595 244,214,239 (44,165,710) (44,170,115) 254,612,834 (18,944) 396,426,189 (1,452,302) 650,908,862 (76,785) 90,161,860 (5,455,104) 124,120,780 ------ (7,003, 135) 1,261,617,691 (8,956,328) 8,737 (150,429,275) (24,110,984) 1,043,106 (317,024,013) (2,312,900) 32,134 (37,796,841) (6,267,396) 4,892,578 (70,980,517) ----------- (41,647,608) 5,976,555 (576,230,646) 519,246 (1,026,580) __ 6_8_5.;...,3_87-'-,_04_5_ $ 874,005,916 $ 111,190,658 $ (45,196,695) $ 939,999,879 (Continued) 19 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 (4) Long-Term Liabilities The following is a summary of the changes in long-term debt for the year ended June 30, 2003: Certificates Arbitrage Compensated Claims and of Payable Absences Judgments Participation Totals Balance, July 1 $ 1,043,890 $ 3,804,700 $ 1,733,627 $ 376,000,000 $ 382,582,217 Additions 413,030 3,593,834 63,866 4,070,730 Deletions 696,200 3,372,949 476,490 11,025,000 15,570,639 Balance, June 30 760,720 4,025,585 1,321,003 364,975,000 371,082,308 Due within one year 3,372,949 476,490 11,610,000 15,459,439 Unamortized discount 393,343 393,343 Unamortized deferred amount on refundings 1,385,938 1,385,938 Long-term amount $ 760,720 $ 652,636 $ 844,513 $ 351,585,719 $ 353,843,588 Arbitrage Payable The Tax Reform Act of 1986 (the Act) requires the District to calculate and remit rebatable arbitrage earnings to the Internal Revenue Service. Certain of the District's debt and interest earnings on the proceeds thereof are subject to the requirements of the Act. The District's liability at June 30, 2003 is $760,720 for future years' remittances. Compensated Absences The District's policies related to compensated absences are described in Note 1. The District's liability at June 30, 2003 is $4,025,585 with an estimated $3,372,949 to be paid or used within the next fiscal year. Claims and Judgments Payable The District is self-insured in a number of areas as described in Note 1. The following is a summary of the claims and judgments payable as of June 30, 2003 and 2002: Claims and judgments payable at July 1 Claims incurred during the fiscal year Payments on claims during the fiscal year Claims and judgments payable at June 30 Less: current portion Total long-term claims and judgments payable Certificates of Participation 2002-03 $1,733,627 63,866 (476,490) 1,321,003 (476,490} $ 844,513 2001-02 $1,695,434 260,950 (222,757) 1,733,627 (514,121} $1,219,506 The District issues certificates of participation in order to finance construction of the treatment facilities. Each certificate of participation represents a direct and proportionate interest in the semi- annual interest payments. Installment payments for the issues are payable from any source of lawfully available funds of the District. Certificates of participation at June 30, 2003 are summarized as follows: (Continued) 20 r ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 1992 refunding certificates of participation 1993 refunding certificates of participation 2000 refunding certificates of participation Total certificates of participation payable Refunded Certificates of Participation 1986 Certificates of Participation Amount $ 113,175,000 42,900,000 208,900,000 $ 364,975,000 On August 13, 1986, District Numbers 1, 2 and 3 completed the sale of $117,000,000 of certificates of participation. In December 1992, the entire remaining principal balance of the certificates was refunded with a portion of the proceeds of the December 1992 refunding certificates of participation (see below) in a transaction accounted for as an in-substance defeasance. The remaining outstanding certificates were called in full on August 1, 1996. 1990-1992 Series A Certificates of Participation On December 5, 1990, all Districts completed the sale of $100,000,000 of certificates of participation. On August 31, 2000, refunding certificates of participation were issued, and a portion of the proceeds (see below) was used to currently refund the remaining principal balance, at no call premium, of the 1990-92 Series A certificates on the call date of October 6, 2000. 1990-1 992 Series B Certificates of Participation On May 1, 1991, District Numbers 1, 2, 3, 5, 6, 7 and 11 completed the sale of $117,555,000 of certificates of participation. This Series was refunded as follows: • On December 3, 1992, $38,350,000 of the outstanding principal balance of the certificates was refunded with a portion of the proceeds of the December 1992 refunding certificates of participation (see below) in a transaction accounted for as an in-substance defeasance. • On September 1, 1993, $39,740,000 of the outstanding principal balance of the certificates was refunded from the proceeds of the September 1993 refunding certificates of participation (see below) in a transaction accounted for as an in-substance defeasance. • On August 31, 2000, the remaining outstanding principal balance of $15,395,000 was refunded from the proceeds of the August 2000 refunding certificates of participation (see below) in a transaction accounted for as an in-substance defeasance. • All outstanding certificates were called in full with a two percent premium on August 1, 2001. 1990-1992 Series C Certificates of Participation On September 1, 1992, District Numbers 1, 2, 3, 6, 7 and 11 completed the sale of $98,500,000 of certificates of participation. On August 31, 2000, refunding certificates of participation were issued, and a portion of the proceeds (see below) was used to currently refund the remaining principal balance, at no call premium, of the 1990-92 Series C certificates on the call date of October 6, 2000. (Continued) 21 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 Outstanding Certificates of Participation December 1992 Refunding Certificates of Participation On December 3, 1992, the District completed the sale of $160,600,000 of refunding certificates of participation. The certificates were issued to refund the remaining outstanding principal balance of the 1986 certificates of participation and $38,350,000 of the outstanding principal balance of the 1990-92 Series B certificates of participation (see above). The interest rate on the refunding certificates is adjusted by the remarketing agent daily based on market interest rates. The weighted average interest rate for the fiscal year ended June 30, 2003 was 1.26 percent. On October 1, 1992, the District and a brokerage company entered into an interest rate exchange swap agreement (Note 5). Annual principal payments are due August 1, beginning August 1, 1993. The trust agreement for the certificates requires the establishment of a reserve which was funded from certificate proceeds. The June 30, 2003 reserve of $12,417,540 is held by the trustee, US Bank, (Note 2) and meets the reserve requirement. Additionally, AMBAC provides municipal bond insurance for the certificates. September 1993 Refunding Certificates of Participation On September 2, 1993, the District completed the sale of $46,000,000 of refunding certificates of participation. The certificates were issued to refund $39,740,000 of the outstanding principal balance of the 1990-92 Series B certificates of participation (see above). The interest rate on the refunding certificates is adjusted by the remarketing agent daily based on market interest rates. The weighted average interest rate for the fiscal year ended June 30, 2003, was 1.20 percent. On September 1, 1993, the District and a brokerage company entered into an interest rate exchange swap agreement (Note 5). Annual principal payments are due August 1, beginning August 1, 1995. The trust agreement for the certificates requires the establishment of a reserve which was funded from certificate proceeds. The June 30, 2003 reserve of $4,404,278 is held by the trustee, JPMorgan, (Note 2) and meets the reserve requirement. August 2000 Refunding Certificates of Participation On August 31, 2000, the District completed the sale of $218,600,000 of refunding certificates of participation. The certificates were issued to refund the remaining outstanding principal balance of the 1990-92 Series A, B, and C certificates of participation (see above) and to reimburse the District for improvements made to the wastewater system. The interest rate on the refunding certificates is adjusted by the remarketing agent daily based on market interest rates. The weighted average interest rate for the fiscal year ended June 30, 2003 was 1.21 percent. Annual principal payments are due August 1, beginning August 1, 2001 . The trust agreement for the certificates requires the establishment of a reserve which was funded from certificate proceeds. The June 30, 2003 reserve of $17,311,427 is held by US Bank, the trustee, (Note 2) and meets the reserve requirement. (Continued) 22 [ (5) I ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 Annual Amortization Requirements The annual requirements to amortize all debt related to certificates of participation as of June 30, 2003, are as follows: Year Ending June 30, 2004 2005 2006 2007 2008 2009-2013 2014-2018 2019-2023 2024-2028 2029-2031 Total Principal $ 11,610,000 12,040,000 12,755,000 13,465,000 14,265,000 84,300,000 124,640,000 77,900,000 8,200,000 5,800,000 $ 364,975,000 Estimated Interest $ 3,113,984 3,009,495 2,901,013 2,786,663 2,665,578 11,235,846 6,259,008 1,473,225 421,050 57,450 $33,923,312 Estimated Interest Rate Swaps, Net (See Note 5) $ 6,629,665 6,300,574 5,801,479 5,258,793 4,681,336 14,089,953 2,114,352 $44,876,152 Total $ 21,353,649 21,350,069 21,457,492 21,510,456 21,611,914 109,625,799 133,013,360 79,373,225 8,621,050 5,857,450 $443,774,464 Interest Rate Swaps on Certificates of Participation As indicated in Note 4, the District has entered into interest rate swap agreements in connection with the 1992 and the 1993 Refunding Certificates of Participation. Objective: The objective of the interest rate swaps is to lower the District's borrowing costs when compared against fixed-rate bonds at the time of issuance. The swaps effectively change the District's variable interest rate to a synthetic fixed rate of 5.55 percent on the 1992 Refunding Certificates of Participation and to a synthetic fixed rate of 4.56 percent on the 1993 Refunding Certificates of Participation. 1992 Refunding Certificates of Participation Terms of the Swap: On October 1, 1992, the District and a brokerage company entered into an interest rate exchange swap agreement pursuant to which the District will pay a fixed interest rate of 5.55 percent. The District will receive a variable interest rate equal to the interest paid to the holders of the certificates which is based on a tax exempt daily interest rate as determined by the remarketing agent on an initial notional amount of $160,600,000. The notional value of the swap declines in tandem with the principal amount of the associated debt. This interest rate swap agreement is accounted for as a hedge, and the associated interest rate differential to be paid or received is charged to interest expense as interest rates change. The 20-year swap agreement matures on August 1, 2013. Fair Value: Because interest rates have declined since execution of the swap agreement, the swap had an estimated negative fair value of $19.1 million as of June 30, 2003. Because the variable-rate certificates adjust to changing interest rates, the certificates do not have a corresponding fair value increase. The fair value was estimated using the zero-coupon method. This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates. (Continued) 23 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement on the swap. Credit Risk: As of June 30, 2003, the District was not exposed to credit risk because the swap had a negative fair value. However, should interest rates change, and the fair value of the swap become positive, the District would be exposed to credit risk in the amount of the swap's fair value. The swap's counterparty, AIG Financial Products Corporation, was rated AAA by Standard & Poor's and Aaa by Moody's Investors Service as of June 30, 2003. To mitigate the potential for credit risk, if the counterparty's credit quality falls below AA-by Standard & Poor' s or Aa3 by Moody's Investors Service, the fair value of the swap (if the swap has a positive fair value) will be collateralized by the counterparty as follows: 1) with bonds, debentures and other debt issued or guaranteed by the United States of America equaling 106 percent of the fair value, or 2) with securities issued by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association equaling 108 percent of the fair value, or 3) other securities to be agreed upon and in an amount to be agreed upon by the District, the counterparty, and the Swap Insurer. The collateral would be held by a third-party custodian. Basis Risk: The swap does not expose the District to basis risk because the variable-rate interest paid to the certificate holders is equal to the variable-rate interest earned on the notional amount of the swap. Termination Risk: The District or the counterparty may terminate the swap if the other party fails to perform under the terms of the contract. In the event of termination due to default, the defaulting party will pay to the non-defaulting party the excess (if any) of the sum of the settlement amount and the unpaid amounts owed less the unpaid amounts due from the non-defaulting party. The swap may be terminated by the District if the counterparty's credit quality rating falls below AA-by Standard & Poor's or Aa3 by Moody's Investors Service. If the swap is terminated, the variable- rate certificates of participation would no longer carry a synthetic interest rate. 1993 Refunding Certificates of Participation Terms of the Swap: On September 1, 1993, the District and a brokerage company entered into an interest rate exchang~ swap agreement pursuant to which the District will pay a fixed interest rate of 4.56 percent. The District will receive a variable interest rate equal to the interest paid to the holders of the certificates which is based on a tax exempt daily interest rate as determined by the remarketing agent on an initial notional amount of $46,000,000. The notional value of the swap declines in tandem , with the principal amount of the associated debt. This interest rate swap agreement is accounted for as a hedge, and the associated interest rate differential to be paid or received is charged to interest expense as interest rates change. The 22-year swap agreement matures on August 1, 2016. Fair Value: Because interest rates have declined since execution of the swap agreement, the swap had an estimated negative fair value of $5.1 million as of June 30, 2003. Because the variable-rate certificates adjust to changing interest rates, the certificates do not have a corresponding fair value increase. The fair value was estimated using the zero-coupon method. This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement on the swap. Credit Risk: As of June 30, 2003, the District was not exposed to credit risk because the swap had a negative fair value. However, should interest rates change, and the fair value of the swap become positive, the District would be exposed to credit risk in the amount of the swap's fair value. The swap's counterparty, Societe Generale Bank, was rated AA-by Standard & Poor's and Aa3 by (Continued) 24 r [ ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 Moody's Investors Service as of June 30, 2003. To mitigate the potential for credit risk, if the counterparty's credit quality falls below AA-by Standard & Poor's or Aa3 by Moody's Investors Service, the fair value of the swap (if the swap has a positive fair value) will be collateralized by the counterparty as follows: 1) with securities issued or guaranteed by the United States Government equaling 106 percent of the fair value, or 2) with securities issued by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, or the Government National Mortgage Association equaling 108 percent of the fair value, or 3) other securities to be agreed upon and in an amount to be agreed upon by the District, the counterparty, and the Swap Insurer. The collateral would be held by a third-party custodian. Basis Risk: The swap does not expose the District to basis risk because the variable-rate interest paid to the certificate holders is equal to the variable-rate interest earned on the notional amount of the swap. Termination Risk: The District or the counterparty may terminate the swap if the other party fails to perform under the terms of the contract. In the event of termination due to default, the defaulting party will pay to the non-defaulting party the excess (if any) of the sum of the settlement amount and the unpaid amounts owed less the unpaid amounts due from the non-defaulting party. The swap may be terminated by the District if the counterparty's credit quality rating falls below AA-by Standard & Poor's or Aa3 by Moody's Investors Service. If the swap is terminated, the variable- rate certificates of participation would no longer carry a synthetic interest rate. (6) Net Assets The difference between assets and liabilities is reported as net assets. Net assets are classified as restricted, unrestricted, or invested in capital assets, net of related debt. Net assets at June 30, 2003 consisted of the following: (7) Pension Plan Invested in capital assets, net of related debt: Capital assets, net of accumulated depreciation Outstanding debt issued to acquire capital assets, net of unamortized bond discount and deferred amount on refundings Unamortized deferred charges of debt issued to acquire capital assets Subtotal Restricted by debt covenants for debt service on certificates of participation Unrestricted June 30, 2003 $ 939,999,879 (363,195,719) 1,843,374 578,647,534 35,181,594 396,518,167 $1,010,347,295 The District participates in the Orange County Employee's Retirement System (OCERS), a cost-sharing multiple-employer, defined benefit pension plan which is governed and administered by a nine member Board of Retirement. OCERS was established in 1945 under the provisions of the County Employees Retirement Law of 1937, and provides members with retirement, death, disability, and cost-of-living benefits. OCERS issues a stand-alone comprehensive annual financial report which can be obtained from OCERS at 2223 Wellington Avenue, Santa Ana, California 92701. (Continued) 25 Benefits ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 All District full-time employees participate in OCERS. Employees who retire at or after age 50 with ten or more years of service are entitled to an annual retirement allowance. The amount of the retirement allowance is based upon the member's age at retirement, the member's "final compen- sation" as defined in Section 31462 of the Retirement Law of 1937, the total years of service under OCERS, and the employees' classification as a Tier I or Tier II member. Benefits fully vest on reaching five years of service. OCERS also provides death and disability benefits. Contributions As a condition of participation under the provisions of the County Employees Retirement Law of 1937, members are required to contribute a percentage of their annual compensation to OCERS. Tier I and Tier II covered employees are required to contribute 4.89% -7.51 % and 6.66% -10.23%, respectively, of their annual compensation to OCERS. The District is required to make periodic contributions to OCERS in amounts that are estimated to remain a constant percentage of covered employees' compensation such that, when combined with covered employees' contributions, will fully provide for all covered employees' benefits by the time they retire. For the fiscal year ended June 30, 2003, 2002, and 2001, the required contribution equaled the contribution actually made. The following table provides salary and contributions requirements for the current and two prior fiscal years. Total Payroll Costs Payroll Costs of Employees Covered by OCERS Contributions Requirements: Contributed by Employees Contributed by the District on Behalf of Employees Total Employee Required Contribution District Required Contribution Total Contribution Employee Required Contribution as a Percent of Covered Payroll District Required Contribution as a Percent of Covered Payroll Total Contribution as a Percent of all Participating Entities' Contributions For the Fiscal Year Ending June 30, 2003 June 30, 2002 June 30, 2001 $ 38,514,484 $ 36,387,839 $ 34,309,332 35,341,483 32,391,018 30,293,967 1,072,477 1,030,924 949,425 1,549,829 1,457,596 1,363,229 2,622,306 2,488,520 2,312,654 1,943,056 765,459 308,712 $ 4,565,362 $ 3,253,979 $ 2,621,366 7.42% 7.68% 7.63% 5.50% 2.36% 1.02% 4.11% 4.03% 3.42% (8) Transactions with Irvine Ranch Water District Revenue Area No. 14 Revenue Area No. 14 was formed as a result of a negotiated Agreement between the District and Irvine Ranch Water District (IRWD) as of July 1, 1985. Pursuant to the Agreement, IRWD paid the (Continued) 26 r r I L L L L I L~ ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 District $34,532,000 for an initial 15,000,000 gallons per day capacity in the District's joint treatment facilities (with an ultimate collection capacity of 32,000,000 gallons per day), together with a pro-rata interest in real property based on flow of 32,000,000 gallons per day. The book value of the assets purchased by IRWD was determined to be $14,553,000 as of June 30, 1986. The excess of the purchase price over the assets' book value of $19,979,000 at June 30, 1986 is being amortized over the remaining 30-year useful lives of the joint assets of Revenue Area No. 14. As of June 30, 2003, $11,181,053 of the excess of purchase price over the assets' book value was amortized. IRWD entered into a separate agreement with Revenue Area No. 14 whereby IRWD agreed to annually fund payment of Revenue Area No. 14's proportionate share of the District's joint capital outlay revolving fund budget requirements and certain capital improvements during the term of the agreement, which contribution amounted to $3, 166,280 in 2003. Consolidated Revenue Area IRWD has entered into an agreement with the District to provide funding to the Consolidated Revenue Area for the construction costs of certain wastewater collection, transmission, treatment and disposal facilities to be used by IRWD (the "Downcoast Agreement"). No new funding occurred in 2003. The agreement also provides that IRWD would not be required to pay connection fees related to development in the Downcoast Area (as defined in the Downcoast Agreement). (9) Commitments Groundwater Replenishment System: In March 2001, the District entered into an agreement with the Orange County Water District, California, to design and construct Phase 1 of the "Groundwater Replenishment System" (GWRS). The cost of this project is to be paid equally (50 percent shares) by each agency. The GWRS is a joint effort by the two agencies to provide reclaimed water for replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion barrier. The GWRS is planned for three phases, Phase 1 will produce approximately 72,000 acre- feet per year of recycled water by June 2007, Phase 2 will increase the total capacity to 112,000 acre-feet by the year 2010, and Phase 3 will increase the total capacity to 145,600 acre-feet per year by the year 2020. Following the completion of Phase 1, the GWRS will have the capacity to divert up to 100 million gallons per day of flow from the District's ocean discharge. As of June 30, 2003, the total estimated cost of GWRS Phase 1 was $453.90 million. Of this amount, up to $92.50 million may be reimbursed through grants from the U.S. Environmental Protection Agency, the U.S. Bureau of Reclamation, the State Water Resources Control Board, and others. The District's estimated gross and net share is $226.95 million and $180.70 million, respectively. Costs incurred by the District through June 30, 2003 total $15.40 million. Secondary Treatment: On July 17, 2002, the Board of Directors Approved Resolution No. OCSD- 14, "Establishing the Policy for Level of Treatment of Wastewater Discharged into the Ocean". This resolution established the District's policy to treat all wastewater discharges into the ocean to secondary treatment standards thereby providing for continued public safety, marine ecosystem protection, and water reclamation opportunities. To implement this policy, District staff was directed to immediately proceed with the planning, design, and implementation of treatment methods that will allow the agency to meet Federal Clean Water Act secondary treatment standards. The District estimates that it will take approximately eleven years and additional capital improvement costs of $271 million to reach secondary treatment discharge standards. In the interim, the District will operate the plants to maximize available secondary treatment and to reduce (Continued) 27 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 effluent biochemical oxygen demand and suspended solid discharges below currently allowed limits. Each year the current 50 percent secondary portion will increase incrementally as operations change and new facilities are constructed and placed in service over the next eleven years. (10) Subsequent Events Certificates of Participation Issued: On August 26, 2003, the District issued $280.0 million Series 2003 Certificates of Participation to finance or reimburse the acquisition, construction and installation of additional improvements to the wastewater system. The net proceeds of the issuance amounted to $277.4 million after payment of $2.6 million in underwriting fees, insurance, and other issuance costs. Of the net proceeds, $27 .0 million was deposited into a reserve fund and the remaining $250.4 million was deposited into an acquisition fund for financing of additional improvements to the wastewater system. Change in Insurance Coverage: The following changes are effective on July 1, 2003: 1) the District joined the California Public Entity Insurance Authority and increased the outside excess insurance coverage of workers' compensation from $25 million to $50 million, 2) the self-insured retention for general liability insurance increased from $100,000 to $250,000 per occurrence, and 3) the self insured retention for flood damage increased from $25,000 to $100,000 and the related outside excess insurance coverage increased from $300 million to $750 million. 28 ORANGE COUNTY SANITATION DISTRICT SUPPLEMENTARY INFORMATION 29 ORANGE COUNTY SANITATION DISTRICT Combining Statement of Net Assets June 30, 2003 With Comparative Totals for June 30, 2002 Revenue Revenue Consolidated Totals Area No. 7 Area No. 14 Revenue Area 2003 2002 Current assets: Cash and cash equivalents $ 393,261 $ 123,638 $ 6,625,560 $ 7,142,459 $ 149,889,829 Investments 21,214,476 6,669,658 357,416,183 385,300,317 279,796,096 Accounts receivable, net of allowance for uncollectibles 757,171 115,417 6,774,099 7,646,687 9,211,697 Accrued interest receivable 393,546 120,239 3,589,930 4,103,715 3,629,425 Due from other governmental agencies 1,635,825 1,635,825 3,090,263 Connection fees receivable 110,154 807,705 917,859 1,460,201 Property tax receivable 118,852 1,170,632 1,289,484 1,066,242 Inventories 468,206 143,050 4,270,972 4,882,228 4,261,509 Prepaid and other assets 84,081 25,688 766,933 876,702 903,427 Total current assets 23,539,747 8,833,515 381 ,422,014 413,795,276 453,308,689 Noncurrent assets: Restricted: Cash and cash equivalents 231,409 2,706,704 2,938,113 551,400 Investments 2,497,466 29,211,977 31,709,443 35,013,427 Accrued interest receivable 25,174 508,864 534,038 505,919 Unrestricted: Capital assets, net 100,305,222 42,427,508 797,267,149 939,999,879 874,005,916 Deferred charges 149,659 1,693,715 1,843,374 1,956,177 Excess purchase price over book value on acquired assets, net 8,797,947 8,797,947 9,455,656 Other assets, net 686,761 114,172 5,242,489 6,043.422 4,166,023 Total noncurrent assets 103,895,691 51,339,627 836,630,898 991,866,216 925,654,518 Total assets 127,435,438 60,173,142 1,218,052,912 1,405,661,492 1,378,963,207 Current liabilities: Accounts payable 1,610,590 459,276 13,959,711 16,029,577 13,958,885 Accrued expenses 525,424 165,104 4,789,004 5,479,532 6,252,998 Retentions payable 139,462 39,218 1,249,749 1,428,429 964,054 Interest payable 114,345 2,959,287 3,073,632 3,266,440 Current portion of long-term obligations 1,123,126 112,788 14,223,525 15,459,439 15,638,321 Total current liabilities 3,512,947 776,386 37,181,276 41,470,609 40,080,698 Noncurrent liabilities: Noncurrent portion of long-term obligations 29,547,506 43,866 324,252,216 353,843,588 364,908,824 Total liabilities 33,060,453 820,252 361,433,492 395,314,197 404,989,522 Net assets: Invested in capital assets, net of related debt 70,364,015 42,427,508 465,856,011 578,647,534 501,997,165 Restricted for debt service 2,754,049 32,427,545 35,181,594 36,070,746 Unrestricted 21,256,921 16,925,382 358,335,864 396,518,167 435,905,774 Total net assets $ 94,374,985 $ 59,352,890 $ 856,619.420 $1,010,347,295 $ 973,973,685 30 [ ORANGE COUNTY SANITATION DISTRICT Combining Statement of Revenues, Expenses, and Changes in Net Assets For the Year Ended June 30, 2003 With Comparative Totals for June 30, 2002 Revenue Revenue Consolidated Totals Area No. 7 Area No. 14 Revenue Area 2003 2002 Operating revenues: Service charges $ 9,755,596 $ 2,915,405 $ 75,969,113 $ 88,640,114 $ 79,609,023 Permit and inspection fees 58,144 20,337 445,385 523,866 395,931 Total operating revenues 9,813,740 2,935,742 76,414,498 89,163,980 80,004,954 Operating expenses other than depreciation and amortization: Salaries and benefits 3,923,095 1,063,619 33,745,814 38,732,528 35,628,682 Utilities 448,546 202,577 3,971,131 4,622,254 4,967,535 Supplies, repairs and maintenance 1,629,954 361,018 12,392,318 14,383,290 9,164,056 Contractual services 1,748,867 444,257 13,765,618 15,958,742 13,933,729 Directors' fees 15,373 15,373 109,005 139,751 146,014 Meetings and training 95,793 29,908 873,402 999,103 724,158 Other 453,024 1,397,734 2,982,374 4,833,132 3,999,043 Total operating expenses other than depreciation and amortization 8,314,652 3,514,486 67,839,662 79,668,800 68,563,217 Operating income (loss) before depreciation and amortization 1,499,088 (578,744) 8,574,836 9,495,180 11,441,737 Depreciation and amortization 4,995,861 1,560,609 36,480,131 43,036,601 46,332,349 Amortization of excess purchase price over book value on acquired assets 657,709 657,709 657,709 Operating loss (3,496,773) (2,797,062) (27,905,295) (34,199,130) (35,548,321) Non-operating revenues: Property taxes 4,138,258 40,453,238 44,591,496 41,139,450 Investment and interest income 1,491,439 314,038 24,083,466 25,888,943 28,073,413 Connection fees 1,878,604 8,267,154 10,145,758 10,560,167 Other 133,484 32,558 539,664 705,706 2,202,455 Total non-operating revenues 7,641,785 346,596 73,343,522 81,331,903 81,975,485 Non-operating expenses: Interest 770,912 3,536 11,956,731 12,731,179 14,406,429 Capital grants to member agencies 1,168,254 1,168,254 3,837,510 Other 2,014 1,515 22,481 26,010 3,770,753 Total non-operating expenses 772,926 5,051 13,147,466 13,925,443 22,014,692 Income (loss) before capital contributions 3,372,086 (2,455,517) 32,290,761 33,207,330 24,412,472 Capital contributions from other agencies 3,166,280 3,166,280 2,600,045 Change in net assets 3,372,086 710,763 32,290,761 36,373,610 27,012,517 Total net assets -beginning 91,002,899 58,642,127 824,328,659 973,973,685 946,961,168 Total net assets -ending $94,374.985 $ 59,352,890 $856,619,420 $1,010,347,295 $ 973,973,685 31 ORANGE COUNTY SANITATION DISTRICT Combining Statement of Cash Flows For the Year Ended June 30, 2003 With Comparative Totals for June 30, 2002 Revenue Revenue Consolidated Totals Area No. 7 Area No. 14 Revenue Area 2003 2002 Cash flows from operating activities: Receipts from customers and users $ 9,999,481 $ 5,420,525 $ 77,622,674 $ 93,042,680 $ 76,603,626 Payments to employees (3,993.479) (1,051,654) (33,343,820) (38,388,953) (36,026,686) Payments to suppliers {4,237,246) {2,374,527) {33,413.713) (40,025,486) {27,208,290) Net cash provided (used) by operations 1,768,756 1,994,344 10,865,141 14,628,241 13,368,650 Cash flows from noncapital financing activities: Connection fees 1,802,140 8,885,960 10,688,100 9,479,824 Proceeds from property taxes 4,124,323 40,243,931 44,368,254 41,092,705 Grants to member agencies {1,168,254) (1, 168,254) (3,837.510) Net cash provided by noncapital financing activities 5,926,463 47,961,637 53,888.100 46,735,019 Cash flows from capital and related financing activities: Additions to property, plant and equipment (11,964,372) (3,273,655) (97,675,303) (112,913,330) (83,857,457) Disposal of property, plant, and equipment 243,457 280,337 523,794 3,531,584 Additions to other assets (2,231) (2,231) (4,147) Disposal of other assets 1,116 1,115 2,231 4,147 Interest paid (701,436) (10,960,058) (11,661,494) (13,146,377) Principal payments on certificates of participation (726,111) (10,298,888) (11,024,999) (10,370,000) Proceeds from capital contributions 3,012,734 3,012.734 1,780,499 Net cash used by capital and related financing activities {13,147,346) 20,531 (118,936,480) (132,063,295) {102,061.751) Cash flows from investing activities: Proceeds from the sale of investments 258,612,498 83,912,949 3,982,331,685 4,324,857,132 1,779,710,290 Purchases of investments (262,911,788) (87,637,263) (4,075,132,715) (4,425,681,766) (1,687,990,859) Interest received 1.425.572 267,981 22,317.378 24,010,931 29,209.472 Net cash provided (used) by investing activities (2,873,718) (3.456,333) (70,483,652) (76,813.703) 120,928,903 Net increase (decrease) in cash and cash equivalents (8,325,845) (1,441,458) (130,593,354) (140,360,657) 78,970,821 Cash and cash equivalents, beginning of year 8,950,515 1,565,096 139,925.618 150,441,229 71.470,408 Cash and cash equivalents, end of year $ 624,670 $ 123,638 $ 9,332,264 $ 10,080.572 $ 150,441,229 Reconciliation of operating loss to net cash provided (used) by operating activities: Operating loss $ (3,496,773) $(2,797,062) $ (27,905,295) $ (34,199,130) $ (35,548,321) Adjustments to reconcile operating loss to net cash provided (used} by operations: Depreciation and amortization 4,995,861 2,218,318 36,480,131 43,694,310 46,990,058 Other non-operating revenues and expenses 138,424 33,104 574,657 746,185 1,273,694 (lncrease)/decrease in operating assets: Accounts receivable 2,007 1,280,789 282,214 1,565,010 (4,626,401) Due from other governmental agencies 50,250 1,171,436 386,298 1,607,984 (960,354) Inventories 63,599 (11,832) (151,302) (99,535) 652,572 Prepaid and other assets 17,099 (1,294) 10,920 26,725 (10,426) lncrease/(decrease) in operating liabilities: Accounts payable 155,350 68,415 1,846,927 2,070,692 2,372,948 Accrued expenses (140,680) 6,356 (639,142) (773,466) 1,742,186 Retentions payable 78,698 21,210 364,467 464,375 664,161 Arbitrage payable 10,261 (293,431) (283,170) 587,390 Compensated absences (38,551) 13,700 245,736 220,885 192,950 Claims and judgments (66,789) (8,796) (337,039) {4121624) 38,193 Net cash provided by (used for) operations $ 1,768,756 $1,994,344 $ 10,865,141 $ 14,628,241 $ 13,368,650 Noncash Activities: Unrealized gain on the fair value of investments $ 75,740 $ 23,812 $ 1,276,051 $ 1,375,603 $ 1,421,443 Net disposal of assets with no cash effect (6,954) (2,061) (57,474) (66,489) 2,841,992 32 , ..... ORANGE COUNTY SANITATION DISTRICT Schedule of Changes in Net Assets by Activity and Revenue Area For the Year Ended June 30, 2003 r- Revenue Revenue Consolidated Area No. 7 Area No. 14 Revenue Area Totals Collection activities: Revenues and capital contributions: Permit and inspection fees $ 31,155 $ 12,091 $ 199,196 $ 242,442 Other revenues 108,532 24,935 312,049 445,516 r· Other capital contributions 3,166,280 3,166,280 ' Total revenues and capital contributions 139,687 3,203,306 511,245 3,854,238 • r Expenses: Salaries and benefits 639,151 60,289 3,789,637 4,489,077 Utilities 60,715 84,086 433,354 578,155 Supplies, repairs and maintenance 528,304 24,432 2,343,091 2,895,827 Contractual services 486,404 58,539 2,249,425 2,794,368 Directors' fees 15,373 15,373 109,005 139,751 Meetings and training 1,092 974 9,543 11 ,609 r-Other expenses 195,553 1,319,972 637,826 2,153,351 Total expenses 1,926,592 1,563,665 9,571,881 13,062,138 Net collection activities {1,786,905) 1,639,641 (9,060,636) (9,207,900) Treatment and disposal activities: Revenues: Service charges 236,187 72,161 2,154,501 2,462,849 Permit and inspection fees 26,989 8,246 246,189 281,424 Investment and interest income 364 111 3,317 3,792 Other revenues 24,952 7,623 227,615 260,190 f Total revenues 288,492 88,141 2,631,622 3,008,255 Expenses: Salaries and benefits 3,283,944 1,003,330 29,956,177 34,243,451 Utilities 387,831 118,491 3,537,777 4,044,099 Supplies, repairs and maintenance 1,101,650 336,586 10,049,227 11,487,463 Contractual services 1,262,463 385,718 11,516,193 13,164,374 Meetings and training 94,701 28,934 863,859 987,494 Other expenses 259,485 79,277 2,367,029 2,705,791 Total expenses 6,390,074 1,952,336 58,290,262 66,632,672 L Net treatment and disposal activities (6,101,582) (1,864,195) (55,658,640) (63,624,417) L Unallocated revenues (expenses): Service charges 9,519,409 2,843,244 73,814,612 86,177,265 Property taxes 4,138,258 40,453,238 44,591,496 Investment and interest income 1,491,075 313,927 24,080,149 25,885,151 Connection fees 1,878,604 8,267,154 10,145,758 Interest expense (770,912) (3,536) (11,956,731) (12,731 ,179) Capital grants to member agencies (1,168,254) (1,168,254) L Depreciation and amortization (4,995,8.61 ) (2,218,318) (36,480,131) (43,694,310) Total unallocated revenues (expenses) 11,260,573 935,317 97,010,037 109,205,927 Total change in net assets $ 3,372,086 $ 710,763 $ 32,290,761 $ 36,373,610 L 33 i L (THIS PAGE INTENTIONALLY LEFT BLANK) 34 [ L L L L L L L i L L $130,000 ] $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 · $0 Fiscal Year 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 Notes ORANGE COUNTY SANITATION DISTRICT Expenses by Type (Dollars in Thousands) Last Ten Fiscal Years 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 • Operating Expense • Non Operating Expense Oeeratin9 Non • Oeeratin9 Personal Maint & Depr& Total Interest Total Non- Services Utilities Other Amort Operating Expense Other (1) Operating $ 28,886 $ 4,589 $ 21,599 $ 33,988 $ 89,062 $ 16,964 $ 2,414 $ 19,378 29,399 3,180 27,369 34,087 94,035 23,941 826 24,767 32,660 2,978 26,114 34,001 95,753 20,731 7,648 28,379 31,523 3,744 22,851 35,284 93,402 21,237 1,497 22,734 28,725 3,328 22,526 35,841 90,420 19,232 1,330 20,562 28,809 3,320 22,546 42,492 97,167 18,359 70 18,429 33,581 3,621 22,213 36,383 95,798 18,151 23,073 41,224 33,734 5,524 23,062 44,188 106,508 17,923 88 18,011 35,629 4,967 27,967 46,990 115,553 14,406 7,609 22,015 38,733 4,622 36,314 43,694 123,363 12,731 1,194 13,925 (1) -For FY 1999-00, Other Non-Operating Expense includes $22,994,647 for the loss on investment in the Orange County Investment Pool. Source: Orange County Sanitation District's Accounting Division. 35 $94,384 $70,788 $47,192 $23,596 $0 ORANGE COUNTY SANITATION DISTRICT Revenues and Gross Capital Contributions by Source (Dollars in Thousands) Last Ten Fiscal Years 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 Ii Operating Revenue • Non-Operating Revenue • Contributed Capital Capacity Operatins Revenue Non-Operatin9 Revenue Rights & Permit & Total Capital Fiscal Service Inspection Total Property Connection Non-Contrib- Vear Charges Fees Operating Taxes Interest Fees Other Operating utions 1993-94 $ 73,400 $ 540 $ 73,940 $ 35,854 $ 33,226 $ 5,745 $ 8,751 $ 83,576 $ 8,459 1994-95 72,909 240 73,149 27,286 18,500 6,577 4,408 56,771 15,587 1995-96 71,362 120 71,482 29,285 20,209 9,493 4,224 63,211 2,266 1996-97 64,923 258 65,181 28,193 20,958 9,687 3,390 62,228 12,876 1997-98 59,517 329 59,846 31,287 27,897 11,251 3,283 73,718 1998-99 69,453 423 69,876 32,836 17,944 8,751 3,332 62,863 141 1999-00 81,241 396 81,637 35,557 20,836 7,867 2,573 66,833 4,589 2000-01 72,566 688 73,254 38,411 39,868 7,332 1,835 87,446 1,271 2001-02 79,609 396 80,005 41,140 28,073 10,560 2,202 81,975 8,603 2002-03 88,640 524 89,164 44,591 25,889 10,146 706 81,332 3,166 Source: Orange County Sanitation District's Accounting Division. 36 r $140,000 $120,000 - $100,000 ,, $80,000 / ORANGE COUNTY SANITATION DISTRICT Property Tax and User Fee Levies and Collections (Dollars in Thousands) Last Ten Fiscal Years $60,000 ,, $40,000 - $20,000 $0 ' 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 ' 2001-02 2002-03 •Total Tax and User Fee Levy •Total Tax and User Fee Collection Current Total Tax %of Total Tax Tax and Percent of Delin-and User %of Total 0/S Delinquen- Fiscal and User User Fee Levy quent Fee Collection Delinquen-ciestoTax Year Fee Levy Collection Collected Collection Collection to Levy cies Levy 1993-94 $92,728 $ 92,545 99.80% $ 5,953 $ 98,498 106.22 $ 184 0.20% 1994-95 92,353 91,945 99.56 86 92,031 99.65 408 0.44 1995-96 91,775 91,596 99.80 812 92,408 100.69 179 0.20 1996-97 89,794 89,570 99.75 180 89,750 99.95 224 0.25 1997-98 90,589 90,078 99.44 81 90,159 99.53 510 0.56 1998-99 98,557 98,267 99.71 74 98,341 99.78 291 0.30 1999-00 107,948 107,794 99.86 72 107,866 99.92 154 0.14 2000-01 105,890 105,646 99.77 94 105,740 99.86 245 0.23 2001-02 112,419 112,087 99.70 83 112,170 99.78 332 0.30 2002-03 122,450 122,210 99.80 98 122,308 99.88 241 0.20 Source: Orange County Auditor -Controller's Office. 37 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 ORANGE COUNTY SANITATION DISTRICT Assessed and Estimated Actual Value of Taxable Property (Dollars in Millions) Last Ten Fiscal Years $0 ....... ~--=~~=-~-"!=-==~-.-'--'-'~-=--s..-==-_,.--=----== ... , -'"--'-.'a;;= .... =...c--'f' 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 •Secured Property Assessed Value • Unsecured Property Assessed Value Secured Propert~ Unsecured Property Totals Estimated Estimated Estimated Ratio of Total Fiscal Assessed Actual Assessed Actual Assessed Actual Assessed to Year Value Value Value Value Value Value EstimatedValue 1993-94 $124,016 $124,016 $3,963 $3,963 $127,979 $127,979 100% 1994-95 123,525 123,525 3,871 3,871 127,396 127,396 100 1995-96 122,524 122,524 3,372 3,372 125,896 125,896 100 1996-97 122,304 122,304 3,247 3,247 125,551 125,551 100 1997-98 125,018 125,018 3,302 3,302 128,320 128,320 100 1998-99 131,295 131,295 3,394 3,394 134,689 134,689 100 1999-00 142,126 142,126 3,507 3,507 145,633 145,633 100 2000-01 155,544 155,544 3,778 3,778 159,322 159,322 100 2001-02 169,357 169,357 4,066 4,066 173,423 173,423 100 2002-03 183,223 183,223 5,657 5,657 188,880 188,880 100 Source: Orange County Auditor -Controller's Office. 38 r L L L L L L L ORANGE COUNTY SANITATION DISTRICT Property Tax Rates -Direct and Overlapping Governments (per $100 of asessed value) Last Ten Fiscal Years Basic OCSD #11, 1958 Fiscal Year 1% Leyy Bond l&R Fund 1993-94 1.00000 0.00019 1994-95 1.00000 0.00019 1995-96 1.00000 0.00018 1996-97 1.00000 0.00010 1997-98 1.00000 0.00010 1998-99 1.00000 0.00020 1999-00 1.00000 0.00000 2000-01 1.00000 0.00000 2001-02 1.00000 0.00000 2002-03 1.00000 0.00000 Source: County of Orange Auditor-Controller's Office. ORANGE COUNTY SANITATION DISTRICT Principal Users For the Year Ended June 30, 2003 Total 1.00019 1.00019 1.00018 1.00010 1.00010 1.00020 1.00000 1.00000 1.00000 1.00000 % to Total Service Service Charge User Charges Revenue Stremicks Heritage Foods, LLC $564,646 0.64% Alstyle Apparel-Activewear Mfg. 488,492 0.55% Disneyland Resort & Park 374,719 0.42% MCP Foods, Inc. 309,590 0.35% House Foods America Corp. 284,033 0.32% Kimberly-Clark Worldwide, Inc. 244,106 0.28% Royalty Carpet Mills, Inc. 211,966 0.24% Nor-Cal Beverage Co., Inc. (Main) 191,326 0.22% Seven-Up Bottling Company 186,113 0.21% Knotts Berry Farm Foods 180,651 0.20% ~~ Q35 642 343% Source: Orange County Sanitation District's Accounting Division. 39 1993-94 Fiscal Year 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 Notes ORANGE COUNTY SANITATION DISTRICT Ratio of Annual Debt Service for Bonded Debt to Total Expenses (Dollars in Thousands) Last Ten Fiscal Years 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 Principal Total Debt Total Operating (1) Interest Service Expenses (2) $ 11,990 $16,964 $28,954 $55,074 9,670 25,439 35,109 59,948 10,180 21,298 31,478 61,752 10,680 20,463 31,143 58,118 11,320 20,008 31,328 54,579 12,120 18,475 30,595 54,675 12,880 17,169 30,049 59,415 13,790 16,690 30,480 62,320 10,370 13,051 23,421 68,563 11,025 11,433 22,458 79,669 (1) -Excludes principal reductions due to advanced refunding. (2) -Excludes depreciation and amortization expense. Source: Orange County Sanitation District's Accounting Division. 40 2001-02 2002-03 Ratio of Debt Service to Total Operating Expenses 52.57% 58.57 50.97 53.59 57.40 55.96 50.57 48.91 34.16 28.19 [ ORANGE COUNTY SANITATION DISTRICT Bond Coverage 4 3.5 3 2.5 2 1.5 0.5 0 i"'===--1---'---- •1993-94 1998-99 Direct (Dollars in Thousands) Last Ten Fiscal Years •1994-95 •1995-96 •1996-97 •1997-98 •1999-00 1!12000-01 •2001-02 •2002-03 Net Revenue Fiscal Gross Operating Avail. For Debt Service Reguirements Year Revenue (1) Expenses (2) Debt Service Principal (3) Interest 1993-94 $157,516 $55,074 $102,442 $11,990 $16,964 1994-95 129,920 59,948 69,972 9,670 25,439 1995-96 134,693 61 ,752 72,941 10,180 21,298 1996-97 127,409 58,118 69,291 10,680 20,463 1997-98 133,564 54,579 78,985 11,320 20,008 1998-99 132,739 54,675 78,064 12,120 17,261 1999-00 148,470 59,415 89,055 12,880 17,069 2000-01 160,700 62,320 98,380 13,790 16,690 2001-02 161,980 68,563 93,417 10,370 13,051 2002-03 170,496 79,669 90,827 11,025 11,433 Notes (1) -Includes non-operating revenues and excludes capital contributions. (2) -Excludes depreciation and amortization expense. (3) -Excludes principal reductions due to advanced refunding. Total Coverage (4) $28,954 3.54 35,109 1.99 31,478 2.32 31,143 2.22 31,328 2.52 29,381 2.66 29,949 2.97 30,480 3.23 23,421 3.99 22,458 4.04 (4) -Coverage requirements per the certificate of participation indenture agreements range from 1.0 to 1.25. It is the District's policy to be in compliance with all bond covenants, and the District has the ability to raise user fees by a vote of the Board of Directors. Source: Orange County Sanitation District's Accounting Division. 41 ORANGE COUNTY SANITATION DISTRICT Computation of Direct and Overlapping Debt June 30, 2003 2002-03 Assessed Valuation (Land & Improvements Only): $170,296,453,956 (after deducting $18,583,723,645 redevelopment incremental valuation) % Applicable Debt 6130/03 Overlapping Tax and Assessment Debt (Based on redevelopment adjusted all property assessed valuation of $177,302,740,118): Orange County Teeter Plan Obligations Metropolitan Water District of Southern California Coast Community College District North Orange County Joint Community College District Rancho Santiago Community College District Brea-Olinda and Laguna Beach Unified School Districts Newport Mesa Unified School District Placentia-Yorba Linda Unified School District Santa Ana Unified School District Anaheim and Fullerton Joint Union High School Districts School Districts Cities Irvine Ranch Water District Improvement Districts Yorba Linda County Water District, I.D. Nos. 1 and 2 Other Special Districts Bonita Canyon Community Facilities District No. 98-1 Irvine Unified School District Community Facilities District No. 86-1 Tustin Unified School District Community Facilities District No. 88-1 and 97-1 Orange County Community Facilities District No. 87-4 Other Community Facilities Districts Orange County Assessment Districts City of Irvine 1915 Act Bonds City of Tustin 1915 Act Bonds Other 1915 Act Bonds Total Overlapping Tax and Assessment Debt Direct and Overlapplng Other Debt: Orange County General Fund Obligations Orange County Pension Obligations Orange County Board of Education Certificates of Participation Orange County Transit District Authority Coast Community College District Certiticates of Participation South Orange County Community College District Certificates of Participation Brea-Olinda Unified School District Certificates of Participation Orange Unified School District Certificates of Participation Santa Ana Unified School District Certificates of Participation Other Unified School District Certificates of Participation Anaheim and Fullerton Union High School District Certificates of Participation School District Certificates of Participation City of Anaheim General Fund Obligations City of Fullerton General Fund Obligations City of Huntington Beach General Fund Obligations City of Irvine General Fund Obligations City of Santa Ana General Fund Obligations Other City General Fund Obligations Orange County Sanitation District Certificates of Participation (1) Irvine Ranch Water District Certificates of Participation Municipal Water District of Orange County Water Facilities Corporation Orange County Fire Authority Other Special District Certificates of Participation Total Gross Direct and Overlapping Other Debt Less: Orange County Transit District Authority (80% self-supporting) City of Anaheim self-supporting obligations Other City self-supporting obligations MWDOC Water Facilities Corporation (100% self-supporting) Total Net Direct and Overlapping Other Debt Gross Combined Total Debt (2) Net Combined Total Debt (1) Excludes certificates of participation supported by wastewater revenues. 72.984% 15.661 99.521 96.978 98.099 97.686 & 5.597 99.999 98.553 100.000 100.000 100.000 Various Various 93.257 & 100.000 100.000 100.000 99.997 100.000 99.961 Various 100.000 100.000 100.000 Various 72.984% 72.984 72.984 72.984 99.521 34.158 97.686 96.196 100.000 Various Various Various 99.174 100.000 99.984 100.000 100.000 Various 100.000 88.478 67.417 44.805 100.000 $ 90,810,342 69,581,040 109,473,100 134,799,420 94,297,664 17,842,876 39,499,605 44,346,682 144,233,156 126,322,735 142,795,664 7,667,801 232,244,536 3,833,594 825,000 44,580,000 102,251,932 164,182,000 73,927,291 246,515,866 106,596,008 720,601,022 66,964,000 28.233.996 $2,812,425,330 $ 711,731,940 88,144,596 14,582,203 4,506,762 8,081,105 14,739,177 32,783,422 50,983,880 50,400,849 14,799,639 32,252,631 27,225,126 713,080,451 38,208,443 84,332,518 53,520,000 138,805,489 153,574,763 -0- 44,946,824 32,282,630 11,358,068 145.000 $2,320,485,516 3,605,410 648,413,233 524,942 32.282,630 $1,635,659,301 $5,132,910,846 $4,448,084,631 (2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Ratios to: Land & Improvement Assessed Valuation All Prooerty Assessed Valuatim1 Total Overlapping Tax and Assessment Debt 1.49% NIA Gross Combined Total Debt 3.01% 2.89% Net Combined Total Debt 2.61 % 2.51 % STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/02: $24,796,482 Source: California Municipal Statistics. 42 r r r I r r ' [ l L L L L L L ORANGE COUNTY SANITATION DISTRICT Demograhic Statistics Covering The Entire County of Orange (1) Last Ten Fiscal Years (2) (3) (5) Population Median (4) Public School (6) Fiscal Estimates Family Median Enrollment Unemployment Year (In Thousands) Income Age (In Thousands) 1993-94 2,597 54,413 32.6 402 1994-95 2,641 55,507 32.9 412 1995-96 2,624 57,106 31.9 422 1996-97 2,632 59,629 32.2 443 1997-98 2,615 61,812 30.4 458 1998-99 2,776 64,611 31.8 471 1999-00 2,828 69,310 32.6 483 2000-01 2,880 70,577 (7) 34.2 494 2001-02 2,940 70,887 (7) not available 503 2002-03 2,979 72,985 (7) not available 512 Notes and Data Sources (1) -The Orange County Sanitation District services 471 square miles or 59% of the total 799 square miles that make up the boundaries of the County of Orange. (2) -Data Source -Demographic Research Unit, California Department of Finance. (3) -Data Source -Anderson Center for Economic Research, Chapman University (4) -Data Source -Center for Demographic Research, California State University, Fullerton. (5) -Data Source -California Department of Education, Educational Demographics Unit. Rate 5.7% 5.1% 4.1% 3.2% 2.9% 2.6% 2.9% 3.0% 4.1% 4.0% (6) -Data Source -State of California, Employment Development Department as of June 30 of each fiscal year. (7) -Estimated number. 43 Assessed Property Value (2)' Fiscal Year Value 1993-94 $178,761,413 1994-95 176,974,944 1995-96 172,508,373 1996-97 177,300,663 1997-98 182,284,316 1998-99 192,625,739 1999-00 209,136,472 2000-01 228,548,301 2001-02 248,966,581 2002-03 269,684,864 Notes and Data Sources ORANGE COUNTY SANITATION DISTRICT Property Value and Construction Covering The Entire County of Orange (1) (Dollars In Thousands) Last Ten Fiscal Years Non- Residential Residential Constr. (3) Construction (3) Calendar No.of Year Value Units Value 1994 $ 560,558 12,644 $1,745,301 1995 582,712 8,300 1,295,297 1996 760,809 10,207 1,528,835 1997 1,079,687 12,251 2,007,084 1998 1,529,698 10,101 1,864,084 1999 1,614,422 12,348 2,262,492 2000 1,762,142 12,367 2,210,775 2001 1,349,607 8,646 1,905,321 2002 1,208,381 11,868 2,328,143 2003 (4) 1,076,678 14,010 2,668,915 Total Construction Value (3) $2,305,859 1,878,009 2,289,644 3,086,771 3,393,782 3,876,914 3,972,917 3,254,928 3,536,524 3,745,593 (1) -The Orange County Sanitation District services 471 square miles or 59% of the total 799 square miles that make up the boundaries of the County of Orange. (2) -Data Source -Orange County Auditor-Controller's Office. (3) -Data Source -"The Chapman University Economic & Business Reivew." (4) -Forecasted numbers. 44 r l L L L L L L L ORANGE COUNTY SANITATION DISTRICT Estimated Populations Served by the Orange County Sanitation District Anaheim Brea Buena Park Costa Mesa Cypress Fountain Valley Fullerton Garden Grove Huntington Beach Irvine La Habra La Palma Los Alamitos Newport Beach Orange Placentia Santa Ana Seal Beach Stanton Tustin Villa Park Westminister Yorba Linda Subtotal City (1) June 30, 2003 Estimated Population Served in Unincorporated Areas (2) Data Sources: Population as of January 1, 2003 337,400 37,950 80,600 111,500 47,650 56,300 131,500 169,900 197,000 164,900 61,200 15,950 11,800 80,000 134,500 49,100 347,200 24,900 38,400 69,800 6,200 90,600 62,700 2,327,050 81,000 2,408,050 (1) Demographic Research Unit, California Department of Finance. (2) Orange County Sanitation District Accounting Division. 45 T:tpe All-Risk ProQertv Fire and Other Perils Flood Earthquake Boiler & Machinerv Employee Dishonesty/ Faithful Performance/ Errors & Ommissions Excess General Liability Travel & Accident Excess Workers' Com~ensation ORANGE COUNTY SANITATION DISTRICT Insurance in Force As of July 1, 2003 Insurer Deductible Public Entity Property $25,000 per occurrence Insurance Program Public Entity Property $100,000 per occurrence Insurance Program Not Applicable Not Applicable Lexington Insurance Co., CNA $25,000 to Insurance Co., and Foreign $100,000 Excess Insurance Co. Hartford Fire, National Union $2,500 Fire, and Great American Insurance Companies Insurance Co of the State of $250,000 PA (first $10 million layer); Gulf Underwriters Insurance Company ($15 million layer excess $10 million) Nationwide Life Insurance -0- CA Public Entity Insurance $500,000 Authority Each Accident Source: Orange County Sanitation District's Risk Management Office. 46 Limit $750 million/occurrence $300 million/occurrence Self-insured $100 million/occurrence $1 million/loss; $4 million excess policy $25 million/occurrence and annual aggregate $100,000/person; $500,000 aggregate per accident $50 million each accident, each employee .L ORANGE COUNTY SANITATION DISTRICT Comparison of The Volume of Wastewater Treated With Revenues and Expenses Last Ten Fiscal Years Millions of Gallons of Waste-Treatment water & Disposal Total Total Total Total Treated Cost per Operating Non-Operating Operating Non-Operating Fiscal Million Costs Costs Revenues Revenues Year Gallons (In Thousands) (In Thousands) (In Thousands) (In Thousands) 1993-94 $ 508.03 $89,062 $19,378 $73,940 $83,576 1994-95 526.98 94,035 24,767 73,149 56,771 1995-96 553.25 95,753 28,379 71,482 63,211 1996-97 526.29 93,402 22,734 65,181 62,228 1997-98 465.75 90,420 20,562 59,846 73,718 1998-99 481 .96 97,167 18,429 69,876 62,863 1999-00 500.75 95,798 41,224 81,637 66,833 2000-01 512.78 106,508 18,011 73,254 87,446 2001-02 563.09 115,553 22,015 80,005 81,975 2002-03 730.32 123,363 13,925 89,164 81 ,332 An Interim Strategic Plan Update to the year 2020 was completed in September 2002 that projects wastewater treatment flows to increase to 284 millions of gallons per day (mgd) in 2010, to 302 mgd in 2015, and to 321 mgd in the year 2020. In order to manage the anticipated increase in wastewater flows, the District has identified a $2.4 billion capital expansion plan through 2020. Total expenses in FY 2002-03 increased $28.8 million, or 26.6 percent since FY 1993-94, primarily as a result of the expected increase in wastewater flows. Depreciation expense represents 33.6 percent of the increase as a result of the previous expansion in capital facilities and the financing associated with the expansion. In FY · 2002-03, maintenance, chemicals, and other operating costs, excluding utilities and depreciation, rose 29.8 percent over the prior year. This increase is due primarily to the District's new policy decisions to fully disinfect the effluent discharged out the District's ocean outfall, costing an additional $5.4 million in chemicals, and to optimize the existing secondary treatment facilities to achieve the highest possible treatment standards, resulting in a $1.1 million increase in biosolid removal cost. As depicted from the chart above, actual wastewater treatment flows have steadily increased from 231 mgd in FY 1993-94 to a high of 254 mgd in FY 1997-98, and after falling two consecutive years to 241 mgd, rose up to 246 mgd in FY 2000-01. In FY 2001-02, flows again retreated back to 234 mgd due to dry weather conditions. In FY 2002-03, flows increased to 239 mgd due to normal weather conditions during the year. Source: Orange County Sanitation District. 47 ORANGE COUNTY SANITATION DISTRICT Biosolids Produced Last Ten Fiscal Years • 1993-94 • 1994-95 1995-96 a 1996-97 • 1997-98 • 1998-99 • 1999-00 • 2000-01 2001-02 • 2002-03 Fiscal Year Tonnage 1993-94 39,650 1994-95 40,228 1995-96 38,802 1996-97 39,387 1997-98 42,645 1998-99 41,023 1999-00 42,824 2000-01 42,014 2001-02 43,138 2002-03 43,351 Source: Orange County Sanitation District's Environmental Compliance and Monitoring Division. 48 r r r r L L ORANGE COUNTY SANITATION DISTRICT Miscellaneous Statistics June 30, 2003 District Organization: The Orange County Sanitation District is one consolidated district made up of three revenue areas which service unincorporated county areas and twenty-three cities and related special districts, as follows: Consolidated Revenue Area County of Orange (unincorporated areas) Cities: Anaheim Brea Buena Park Costa Mesa Cypress Fountain Valley Fullerton Garden Grove Huntington Beach La Habra La Palma Los Alamitos Newport Beach Orange Placentia Santa Ana Seal Beach Stanton Tustin Villa Park Westminster Yorba Linda Special Districts: Midway City Sanitary District Costa Mesa Sanitary District Governing Body: Authorized Full-Time Equivalent Employees: Operational Date: Authority: Services: Service Area: Population Served: Total Miles of Trunk and Subtrunk Sewers: Number of Pumping Stations: Average Daily Flow (million of gallons per day): Plant 1 Plant 2 Total Revenue Area No. 7 County of Orange (unincorporated areas) Cities: Irvine Orange Santa Ana Tustin Special District: Costa Mesa Sanitary District Revenue Area No. 14 County of Orange (unincorporated areas) Cities: Irvine Orange Tustin Special District: Irvine Ranch Water District 25-member Board of Directors 567 July 1, 1954 California Health & Safety Code Section 4700 et. seq. Wastewater collection, treatment, and disposal 471 square miles 2.4 million 650 miles 21 87 152 ~ Source: Orange County Sanitation District's Accounting Division. 49 (THIS PAGE INTENTIONALLY LEFT BLANK) 50 Financial Report First Quarter Ended September 30, 2003 Orange County Sanitation District, California Table of Contents Section 1 -Overview ................................................................................................................... 1 Section 2 -Joint Operating Budget Review Chart of the Cost per Million Gallons by Department -Budget and Actual. ........................... 1 Chart of the Net Expenses by Major Category -Budget and Actual ..................................... 1 Divisional Contributions to Gallonage Charge ........................... ., .......................................... 2 Comparison of Expenses by Department .............................................................................. 3 Summary of Expenses by Major Category ............................................................................ 4 Summary of Joint Operating Revenues by Line Item ............................................................ 5 Summary of Expenses by Line ltem ...................................................................................... 6 Summary of Expenses by Treatment Process ...................................................................... 8 Chart of Staffing Trends ........................................................................................................ 9 Section 3 -Capital Improvement Program Review Capital Improvement Program Graphs by Type and Funding Source ................................... 1 Summary of Capital Improvement Construction Requirements -Current Year ..................... 2 Summary of Capital Improvement Construction Requirements -Project Life ........................ 6 Section 4 -Budget Review by Revenue Area Summary Budget Reviews -All Revenue Areas .................................................................... 1 Consolidated Revenue Area Budget Review ......................................................................... 2 Revenue Area No. 14 Budget Review .................................................................................. 3 Section 5-Self Insurance Budget Review General Liability Fund Budget Review ................................................................................... 1 L Workers' Compensation Fund Budget Review ...................................................................... 2 2003-04 First Quarter Report This Page Intentionally Left Blank r I [ { First Quarter Financial Report September 30, 2003 Overview The Finance Department is pleased to present the 2003-04 first quarter comprehensive financial report. This report provides the Directors, staff, and the general public with a comprehensive overview of the financial condition of the District and reports on the status of all capital projects in progress. A summary of the sections contained within this report is provided below. Joint Operating Budget Review: At September 30, 2003, 24.42 percent, or $18.81 million of the 2003-04 net joint operating budget of $77.01 million has been expended. Net operating expenses increased by $4.21 million from the same period last year, primarily due to 1) increased salaries, wages, and employee benefits as a result of twenty-six additional full-time equivalent employees, 2) increased costs of chemicals as a result of disinfecting the effluent, and 3) increased costs for biosolids removal due to providing more secondary treatment. The total cost per million gallons at September 30, 2003 is $823.82 based on flows of 22.83 billion gallons, or 248.17 million gallons per day. This is $17.81, or 2.12 percent below the budgeted cost per million gallons of $841.63. This lower cost per million gallons is due to net expenses being 2.30 percent, or $0.44 million lower than the proportionate budget through September 30, 2003. This is slightly offset by flows being 0.73 percent lower than the budgeted amount of 250 million gallons per day. Some of the significant joint operating results as of September 30, 2003 include: • Salaries. Wages and Benefits -Joint operating personnel costs were at 23.00 percent of budget through September 30 while staffing was 51 full-time equivalents (FTE's), or 8.56 percent below the total 596 FTE's approved in the 2003-04 budget. Net joint operating personnel costs are expected to be at or below budget at year- end. There are currently 31 positions being recruited. • Memberships -Membership expense totaled $172,200, or 72.91 percent of the $236,200 budget as of September 30 because many of the District's memberships are paid in the first quarter of each year. These costs are expected to approximate budget at year-end. • Operating Expenses -Overall operating expenses totaled $3,223,100, or 20.94 percent of the composite $15,390,750 budget. Chemicals comprise the majority of these operating expenses. The increase in chemical costs is not as large as was anticipated when the budget was prepared. Based on current processes, chemical costs are anticipated to parallel the budget throughout the remainder of the year and to be at or below budget at year-end. • Professional Services -Overall professional services totaled $544,500, or 19.65 L percent of the composite $2,771,100 budget. Legal, Audit & Accounting, FIS Support, and Labor Negotiation Services are all higher than the proportionate L L Section 1 -Page 1 2003-04 First Quarter Report budget through September 30 due to the timing of when the services are provided. Other professional services are in the planning or request for proposal stages. It is anticipated that the overall costs for this category will increase in the second and third quarters of the fiscal year. • Research & Monitoring -Research & Monitoring costs totaled $416,100, or 25.32 percent of the composite $1,643,000 budget. Due to the timing of when services are provided, Air Quality Monitoring has a cost of zero while Research costs are at 33.20 percent of the budget through September 30. It is anticipated that the overall costs for this category will continue to parallel the budget throughout the remainder of the year. • Utilities -Utilities costs totaled $1,368,200, or 29.31 percent of the composite $4,667,900 budget. These costs are proportionately high through September 30 due to higher than anticipated costs for electricity as a result of high meter readings. Staff is working with Southern California Edison (SCE) regarding differences in District meter readings versus SCE meter readings. It is anticipated that the meter reading difference will be resolved and the cost for electricity will be more in line with the budget by the end of the second quarter. • Insurance -Insurance expense totaled $202,600, or 16.21 percent of the $1,250,000 budget. This expense is lower than the proportionate budget through September 30 due to the budget being prepared prior to the actual premium costs being determined by the insurance broker. Insurance expense is anticipated to total approximately $810,000 at year-end. • Net Cost Allocation -Cost allocation totaled $4.60 million, or 19.95 percent of the $23.04 million budget. The allocation of costs to capital projects is expected to increase throughout the rest of the year as the District focuses on the design of secondary treatment facilities. • Power Sales Revenue -Power sales revenue is $6,500, or 1.65 percent of the $390,000 budget through September 30. This revenue is proportionately low due to potential problems with SCE's meters and the subsequent remittance of sales revenue. It is anticipated that the meter reading difference will be resolved and the revenue for electricity sales will be more in line with the budget by the end of the second quarter. The summary of expenses by treatment process shows a 150.98 percent increase in the secondary treatment process from the same time period last year. This increase is a result of the emphasis placed on additional secondary treatment as the District progresses toward full secondary treatment of effluent. The summary of expenses by treatment process also shows a 251 .10 percent increase in the utilities process from the same time period last year. This increase is a result of the extra power needed for the additional secondary treatment process. Section 1 -Page 2 r r r L Overview Comparison of First Quarter Cost per Million Gallon Results With Year-End Actuals (Budget) 99-00 1st Year Qtr end 00-01 1st Year Otr end Last Five Years Q1:Qg 1st Year Qtr end 02-03 1st Year Otr end 841.63 03-04 1st Annual Qtr Budget As demonstrated in the preceding graph, the cost per million gallons at the end of the first quarter has been somewhat lower than at year-end for three of the last four years. The cost comparison for the first quarter of 2003-04 is consistent with this trend when compared with this year's budget. Section 2 -Page 1 provides a graphical comparison of each Department's actual contribution towards the gallonage charge through the first quarter of 2003-04 and as budgeted for 2003-04. Page 1 also provides a budget to actual graphical comparison of revenues and expenses by major category. More detailed information is provided at the following locations: Section 2 -Page 2 provides for the divisional contributions to the gallonage charge through the first quarter for the current and two prior years; Section 2 -Page 3 provides a comparison of expenses by department through September 30 for the current and two prior years; Section 2 -Page 4 provides a summary of expenses by major category through September 30, 2003 and 2002; Section 2 -Page 5 provides a summary of joint operating revenues by line item through September 30, 2003 and 2002; Section 2 - pages 6 and 7 provide a summary of expenses by line item through September 30, 2003 and 2002; Section 2 -Page 8 provides a summary of expenses by treatment process through September 30, 2003 and 2002; Section 2 -Page 9 provides staffing trends over the last five years including total positions authorized, actual positions filled, and vacant positions. Section 1 -Page 3 2003-04 First Quarter Report Capital Outlay Review: $250,000,0001 $200,000,000 · $150,000,000 $100,000,0001 $50,000,0007 $0- 9/30/03 Actual Capital Outlay $24,253,600 Projected 2003-04 Capital Outlay $202,672,500 2003-04 Capital Outlay Cashflow Budget $199,952,600 As depicted by the preceding chart, total Capital Outlay expenditures totaled $24,253,600 or 12.13 percent of the capital outlay cashflow budget for 2003-04 as of September 30, 2003. Costs are proportionately low through the first quarter as many projects are still in the design phase or have experienced various delays, but they are expected to approximate budget by year-end. Section 3 -Page 1 provides a graphical presentation on the dollar amount of capital expenditures incurred for each process category and a graphical presentation on the dollar amount of capital expenditures incurred for each major capital improvement funding source. For more detailed information, Section 3 -Pages 2 through 5 provide a summary of the construction requirements of each project for the current year and Section 3 -Pages 6 through 9 provide a summary of the construction requirements of each project over the project life. Budget Review by Revenue Areas: At September 30, 2003, revenues from all Revenue Areas totaled $291,524,900 million, or 60.53 percent of budget. Debt, the largest revenue source, was issued in August for $280 million and is at 100 percent of the budget. Other than the capital assessment received from IRWD, all other revenue sources are proportionately low through September 30. Tax Allocation/Subvention Revenue and Other User Fees are proportionately low through the first quarter because most of the property tax apportionment and user fee receipts that are collected by the County through the property tax roll are not distributed to the District until after the first quarter of each year. Connection fees, budgeted at $9.12 million, are at 15. 78 percent of budget, or $1.44 million, due to lower than anticipated building activity within the member cities. No sale of capacity rights has occurred as of September, but additional Section 1 -Page 4 r l Overview capacity will be sold to SAWPA during the second quarter. Interest earnings are proportionately low due to lower than anticipated interest rates. Expenses and outlays of all Revenue Areas totaled $61.33 million, or 18.79 percent of budget through the first quarter. The costs incurred related to capital improvement projects are proportionately low at $24.25 million or 12.13 percent of budget, as previously explained in the Capital Outlay Section. COP retirement and interest expense, budgeted at $36.95 million, is proportionately high at 42.35 percent of budget, or $15.65 million, because the annual principal payments are paid during the first quarter of the fiscal year. Self-Insurance Budget Reviews: The District is self-insured for portions of workers' compensation, property damage, and general liability. Separate fund accounting is utilized for the recording of revenue and expenses incurred in managing these liability claims. The revenues to these funds represent individual Revenue Area contributions based on flows. Expenses to these funds include actual claims paid, claims administration, and excess loss policies. The Self-Insurance Fund revenues totaled $926,680 or 24.86 percent of the $3,727,000 budget at September 30, while total expenses were $670,050 or 22.71 percent of the $2,951,000 budget. Section 1 -Page 5 2003-04 First Quarter Report This Page Intentionally Left Blank Section 1 -Page 6 r r r r r r r r r [ l L L L L L L L L $eoo l $550 $500 $450 · $400 $350 $300 $250 ~ $200 $150 $100 $50 ·~ $0 -~ Joint Operating Budget Review Cost per Million Gallons by Department Budget and Actual September 30, 2003 Executive Finance Human Resources Technical Services Engineering Operations & Information Management $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 1 ~ ~ en ti " ·-., -~ ~ 'O UJ <( I • Budget • Actual Net Expenses by Major Category Budget and Actual (in thousands) September 30, 2003 Maintenance Technology & Cl en " ., :;:::; en ., " ~ ., ., C. C. X 0 UJ ai ::, en u ~ i -~ " ., 0 (/) t) ai i:: en 0 ., ·en .2 en ~ .l!! ., e (/) a. j • Budget • Actual ' Section 2 -Page 1 " .Q iii CJ .9. ;a: ti 0 t) en ., :::, " ., > ., a: 2003-04 First Quarter Report Divisional Contributions to Gallonage Charge For the Three Months Ended September 30, 2003-04 9/30/01 9/30/02 Annual 9/30/03 Actual Actual Budget Actual Flow in Million Gallons 21,830.95 22,071.26 91,500.00 22,831.79 Flow in Million Gallons per Day 237.29 239.91 250.00 248.17 General Manager's Department General Management Administration $ 15.39 $ 17.08 $ 13.84 $ 19.88 Administrative Services 9.19 9.04 9.60 8.64 Communications 5.70 6.56 11.64 6.33 Subtotal 30.28 32.68 35.08 34.85 Finance Department Finance Administration 16.13 12.98 16.84 11.68 Accounting 18.12 17.20 20.16 18.33 Purchasing & Warehouse 13.34 14.17 17.56 15.86 Subtotal 47.59 44.35 54.56 45.87 Human Resources Department Human Resources Administration 12.99 5.49 7.13 8.85 Employee Development/Training 2.22 7.69 5.23 Safety and Health 5.97 7.67 13.06 9.43 Human Resources 5.32 6.09 6.41 Subtotal 18.96 20.70 33.97 29.92 Technical Services Department Technical Services Administration 11.51 11 .30 8.68 8.74 Environmental Compliance & Monitoring 44.19 32.12 42.08 40.77 Environmental Sciences Laboratory 42.07 46.60 60.50 48.42 Source Control 37.21 34.20 42.97 39.31 Subtotal 134.98 124.22 154.23 137.24 Engineering Department Engineering Administration 5.27 6.10 5.25 4.26 Planning 14.97 9.78 15.38 14.00 Project Management Office 20.68 12.41 17.52 13.80 Engineering and Construction 35.14 50.88 56.98 53.59 Subtotal 76.06 79.17 95.13 85.65 Operations & Maintenance Department Operations & Maintenance Administration 3.10 4.98 6.29 5.00 0 & M Process Engineering 10.29 15.14 20.73 16.03 Plant No. 1 Operations 94.26 102.94 152.14 147.91 Plant No. 2 Operations 128.66 153.19 209.90 203.84 Mechanical Maintenance & Power Production 104.92 102.83 120.11 133.52 Instrumentation & Electrical Maintenance 60.56 66.12 74.47 68.12 Air Quality & Special Projects 14.32 15.98 18.30 16.51 Collection Facilities Maintenance 16.60 17.93 25.64 22.26 Plant Facilities Maintenance 50.77 52.67 54.94 46.68 Subtotal 483.48 531 .78 682.52 659.87 Information Technology Department Information Technology Administration 6.55 7.22 3.34 2.89 Customer & Network Support 16.62 19.54 37.79 27.11 Programing & Database 11 .90 11 .97 17.15 16.70 Process Ctrl Integration 11.11 14.25 17.96 14.27 Subtotal 46.18 52.98 76.24 60.97 Total Joint Operating Expenses 837.53 885.88 1,131.73 1,054.37 Less: Cost Allocation (277.54) (192.48) (251 .85) (201 .36} Net Joint Operating Requirements 559.99 693.40 879.88 853.01 Less: Revenues (36.46) (32.15) (38.25) (29.19) Net Joint Operating Expenses $ 523.53 $ 661 .25 $ 841 .63 $ 823.82 Section 2 -Page 2 Joint Operating Budget Review Comparison of Expenses by Department For the Three Months Ended September 30, 2003-04 9/30/01 9/30/02 Year to Date Budget% Department and Division Actual Actual Budget 9/30/03 Realized General Manager's Department General Management Administration $ 335,977 $ 377,003 $ 1,266,600 $ 453,992 35.84% Administrative Services 200,714 199,593 878,750 197,375 22.46% Communications 124,333 144,730 1,065,130 144,619 13.58% Subtotal 661,024 721,326 3,210,480 795,986 24.79% Finance Department Finance Administration 352,118 286,513 1,541,200 266,656 17.30% Accounting 395,641 379,665 1,845,040 418,584 22.69% Purchasing & Warehouse 291 ,326 312,802 1,606,650 362 055 22.53% Subtotal 1,039,085 978,980 4,992,890 1,047,295 20.98% r Human Resources Department Human Resources Administration 283,483 121,163 652,300 202,042 30.97% Employee Development/Training 48,937 703,920 119,350 16.96% Safety and Health 130,356 169,367 1,194,930 215,415 18.03% Human Resources 117,420 557,160 146,349 26.27% Subtotal 413,839 456,887 3,108,310 683,156 21 .98% Technical Services Department Technical Services Administration 251 ,321 249,442 794,440 199,496 25.11 % Environmental Compliance & Monitoring 964,674 708,835 3,850,660 930,760 24.17% Environmental Sciences Laboratory 918,452 1,028,453 5,535,740 1,105,518 19.97% Source Control 812,258 754,849 3,931 ,900 897,476 22.83% Subtotal 2,946,705 2,741,579 14,112,740 3,133,250 22.20% Engineering Department Engineering Administration 115,002 134,675 480,200 97,362 20.28% Planning 326,721 215,932 1,407,070 319,537 22.71% Project Management Office 451 ,188 273,840 1,602,690 315,161 19.66% Engineering and Construction 767,082 1,123,035 5,213,930 1,223,643 23.47% Subtotal 1,659,993 1,747,482 8,703,890 1,955,703 22.47% Operations & Maintenance Department Operations & Maintenance Administration 67,647 109,987 575,620 114,269 19.85% 0 & M Process Engineering 224,665 334,163 1,896,460 366,023 19.30% Plant No. 1 Operations 2,057,683 2,272,023 13,921,130 3,376,981 24.26% Plant No. 2 Operations 2,808,953 3,380,836 19,204,630 4,653,737 24.23% Mechanical Maintenance & Power Production 2,290,425 2,269,675 10,989,900 3,048,528 27.74% Instrumentation & Electrical Maintenance 1,322,060 1,459,365 6,814,140 1,555,201 22.82% Air Quality & Special Projects 312,553 352,722 1,674,170 376,858 22.51% Regional Assets & Services 362,448 395,814 2,346,300 508,192 21 .66% Facilities Maintenance 1,108,341 1,162,544 5,027,460 1,065,728 21 .20% L Subtotal 10,554,775 11 ,737,129 62,449,810 15,065,517 24.12% Information Technology Department Information Technology Administration 142,937 159,256 305,400 66,096 21.64% Customer & Network Support 362,897 431,377 3,457,350 619,008 17.90% Programing & Database 259,885 264,139 1,569,240 381 ,310 24.30% Process Ctrl Integration 242,532 314,621 1,642,990 325,911 19.84% Subtotal 1,008,251 1,169,393 6,974,980 1,392,325 19.96% Total Joint Operating Expenses 18,283,672 19,552,776 103,553,100 24,073,232 23.25% Less: Cost Allocation (6,058,643) (4,248,469) (23,043,600) (4,597,551) 19.95% Net Joint Operating Requirements 12,225,029 15,304,307 80,509,500 19,475,681 24.19% Less: Revenues (795,958) (709,582) (3,500,000) (666,483) 19.04% Net Joint Operating Expenses $ 11,429,071 $ 14,594,725 $ 77,009,500 $ 18,809,198 24.42% Section 2 -Page 3 2003-04 First Quarter Report Summary of Expenses by Major Category For the Three Months Ended September 30, 2003 Expense Expense Increase Increase Percent Budget Through Through (Decrease) (Decrease) Budget Remaining Description 2003-04 9/30/03 9/30/02 $ % Realized Budget Salary, Wages & Benefits $55,148,890 $12,683,498 $11,281,844 $ 1,401,654 12.42% 23.00% $42,465,392 Administrative Expenses 855,830 318,161 216,555 101,606 46.92% 37.18% 537,669 Printing & Publication 426,170 101,775 82,464 19,311 23.42% 23.88% 324,395 Training & Meetings 1,208,700 206,790 87,780 119,010 135.58% 17.11% 1,001,910 Operating Expenses 15,390,750 3,223,101 2,382,281 840,820 35.29% 20.94% 12,167,649 Contractual Services 12,759,250 3,081,004 2,044,899 1,036,105 50.67% 24.15% 9,678,246 Professional Services 2,771,120 544,479 392,145 152,334 38.85% 19.65% 2,226,641 Research & Monitoring 1,643,000 416,074 391,912 24,162 6.17% 25.32% 1,226,926 Repairs & Maintenance 6,672,220 1,791,111 1,265,109 526,002 41 .58% 26.84% 4,881,109 Utilities 4,667,900 1,368,199 1,015,947 352,252 34.67% 29.31% 3,299,701 Other Materials, Supplies, and Services 2,009,270 339,040 391 ,840 (52,800) -13.47% 16.87% 1,670,230 Net Cost Allocation (23,043,600) (4,597,551) (4,248,469) (349,082) 8.22% 19.95% (18,446,049) Net J. 0 . Requirements 80,509,500 19,475,681 15,304,307 4,171,374 27.26% 24.19% 61,033,819 Revenues (3,500,000) (666,483) (709,582) 43,099 -6.07% 19.04% (2,833,517) Net J. 0. Expenses $77,009,500 $18,809,198 $14,594,725 $4,214,473 28.88% 24.42% $58,200,302 Gallonage Flow (MG) 91 ,500.00 22,831 .79 22,071 .26 760.53 3.45% Gallonage Flow (MGD) 250.00 248.17 239.91 8.26 3.44% Gallonage Flow ($'s /MG) $841.63 $823.82 $661 .25 $162.57 24.59% Section 2 -Page 4 Joint Operating Budget Review Summary of Joint Operating Revenues by Line Item For the Three Months Ended September 30, 2003 % Revenue Revenue Revenue Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2003-04 9/30/03 9/30/03 Budget 9/30/02 $ % Inter District Sewer Use $1,350,000 $ 400,833 29.69% $ 949,167 $ 270,630-$130,203 48.11% Wastehauler 460,000 46,490 10.11% 413,510 137,102 (90,612) -66.09% Sludge Disposal 850,000 137,400 16.16% 712,600 204,000 (66,600) -32.65% CNG Sales 300,000 55,489 18.50% 244,511 66,684 (11,195) -16.79% Other Sales 3,059 NIA (3,059) 3,972 (913) -22.99% Rents & Leases 25,000 5,257 21.03% 19,743 4,790 467 9.75% General Non-Operating 125,000 11 ,501 9.20% 113,499 (10,488) 21,989 -209.66% Power Sales 390,000 6,454 1.65% 383,546 32,892 (26,438) -80.38% Total $3,500,000 $ 666,483 19.04% $2,833,517 $ 709,582 $ (43,099) -6.07% L L Section 2 -Page 5 2003-04 First Quarter Report Summary of Expenses by Line Item For the Three Months Ended September 30, 2003 Expense %Expense Expense Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2003-04 9/30/03 9/30/03 Budget 9/30/02 $ % Salaries, Wages & Benefits Salaries & Wages $42,630,100 $ 9,998,919 23.46% $ 32,631,181 $ 9,218,174 $ 780,745 8.47% Employee Benefits: Retirement 5,512,000 1,142,003 20.72% 4,369,997 797,262 344,741 43.24% Group Insurances 5,797,300 1,262,994 21.79% 4,534,306 1,104,211 158,783 14.38% Tuition & Certification Reimb 101,190 10,739 10.61% 90,451 18,432 (7,693) -41 .74% Uniform Rental 82,200 18,844 22.92% 63,356 18,767 77 0.41% Workers' CompensatioFI 1,000,000 249,999 25.00% 750,001 124,998 125,001 100.00% Unemployment Insurance 26,100 0.00% 26,100 NIA Total Benefits 12,518,790 2,684,579 21.44% 9,834,211 2,063,670 620,909 30.09% Salaries, Wages & Benefits 55,148,890 12,683,498 23.00% 42,465,392 11,281,844 1,401,654 12.42% Matl, Sut;1t;1lll, & Services Administrative Expenses Memberships 236,160 172,185 72.91% 63,975 125,078 47,107 37.66% Office Exp -Supplies 146,980 28,504 19.39% 118,476 24,294 4,210 17.33% Office Expense -Other 90,100 18,784 20.85% 71,316 21,574 (2,790) -12.93% Small Computer Items 233,700 49,919 21.36% 183,781 36,816 13,103 35.59% Minor Furniture & Fixtures 148,890 48,769 32.76% 100,121 8,793 39,976 454.63% Printing & Publication Repro-ln-House 299,600 82,315 27.47% 217,285 64,196 18,119 28.22% Printing-Outside 79,500 5,716 7.19% 73,784 9,052 (3,336) -36.85% Notices &Ads 41,900 11,530 27.52% 30,370 8,729 2,801 32.09% Photo Processing 5,170 2,214 42.82% 2,956 487 1,727 354.62% Training & Meetings Meetings 328,600 51,246 15.60% 277,354 43,841 7,405 16.89% Training 880,100 155,544 17.67% 724,556 43,939 111,605 254.00% Operating Expenses Chemical Coagulants 2,569,000 504,671 19.64% 2,064,329 424,034 80,637 19.02% Sulfide Control 3,598,000 736,466 20.47% 2,861,534 582,695 153,771 26.39% Odor Control 1,959,700 291,767 14.89% 1,667,933 383,326 (91,559) -23.89% Disinfection 5,777,000 1,306,971 22.62% 4,470,029 717,248 589,723 82.22% Chemicals -Misc & Cogen 27,750 7,878 28.39% 19,872 2,432 5,446 223.93% Gasoline, Diesel & Oil 303,800 66,166 21.78% 237,634 59,452 6,714 11.29% Tools 134,800 35,970 26.68% 98,830 33,574 2,396 7.14% Safety equipmenUtools 109,500 38,496 35.16% 71,004 38,496 NIA Solv, Paints & Jan. Supplies 48,000 21,375 44.53% 26,625 10,759 10,616 98.67% Lab Chemicals & Supplies 468,200 164,697 35.18% 303,503 93,279 71,418 76.56% Other Operating Supplies 371,000 48,644 13.11% 322,356 75,482 (26,838) -35.56% Property Tax Fees 24,000 0.00% 24,000 NIA Contractual Services Solids Removal 9,600,000 2,518,307 26.23% 7,081,693 1,579,525 938,782 59.43% Other Waste Disposal 631,000 156,685 24.83% 474,315 92,840 63,845 68.77% Groundskeeping 220,000 42,223 19.19% 177,777 46,968 (4,745) -10.10% Janitorial 430,000 52,470 12.20% 377,530 65,050 (12,580) -19.34% Outside Lab Services 276,000 18,002 6.52% 257,998 24,797 (6,795) -27.40% Oxygen Plant Oper 340,000 105,117 30.92% 234,883 77,516 27,601 35.61% Temporary Services 720,500 107,910 14.98% 612,590 81,462 26,448 32.47% Security Services 250,000 49,362 19.74% 200,638 47,604 1,758 3.69% Other 291,750 30,928 10.60% 260,822 29,137 1,791 6.15% (Continued) Section 2 -Page 6 Joint Operating Budget Review Summary of Expenses by Line Item For the Three Months Ended September 30, 2003 Expense % Expense Expense Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2003-04 9/30/03 9/30/03 Budget 9/30/02 $ % Continued: Professional Services Legal 457,000 137,539 30.10% 319,461 119,043 18,496 15.54% Audit & Accounting 75,000 39,500 52.67% 35,500 36,922 2,578 6.98% Engineering 280,400 53,334 19.02% 227,066 32,564 20,770 63.78% Enviro Scientific Consulting 195,000 0.00% 195,000 47,374 (47,374) -100.00% FIS Support 237,540 105,560 44.44% 131,980 7,740 97,820 1263.82% Software Prgm Consulting 155,000 7,181 4.63% 147,819 62,809 (55,628) -88.57% Energy Consulting 40,000 0.00% 40,000 NIA Advocacy Efforts 328,000 72,012 21.95% 255,988 10,000 62,012 620.12% Industrial Hygiene SeNices 50,000 0.00% 50,000 1,818 (1,818) -100.00% Labor Negotiation Services 43,790 13,063 29.83% 30,727 8,313 4,750 57.14% Other 909,390 116,290 12.79% 793,100 65,562 50,728 77.37% Research & Monitoring Environmental Monitoring 980,000 235,785 24.06% 744,215 162,992 72,793 44.66% Air Quality Monitoring 120,000 0.00% 120,000 NIA Research 543,000 180,289 33.20% 362,711 228,920 (48,631) -21 .24% Repairs & Maintenance Materials & Services 5,214,080 1,506,518 28.89% 3,707,562 1,092,872 413,646 37.85% Svc. Mic. Agreements 1,458,140 284,593 19.52% 1,173,547 172,237 112,356 65.23% Utilities Telephone 198,600 46,217 23.27% 152,383 35,549 10,668 30.01% Diesel For Generators 12,000 6,592 54.93% 5,408 2,815 3,777 134.17% Natural Gas 1,889,100 443,529 23.48% 1,445,571 364,003 79,526 21 .85% Power 1,356,200 618,661 45.62% 737,539 342,349 276,312 80.71% Water 1,212,000 253,200 20.89% 958,800 271,231 (18,031) -6.65% Other Operating Supplies Outside Equip Rental 50,700 17,607 34.73% 33,093 8,328 9,279 111 .42% Insurance 1,250,000 202,572 16.21% 1,047,428 229,456 (26,884) -11 .72% Freight 67,600 22,448 33.21% 45,152 15,830 6,618 41.81% Misc. Operating Expense 364,100 19,587 5.38% 344,513 49,167 (29,580) -60.16% Regulatory Operating Fees 205,170 71,188 34.70% 133,982 79,397 (8,209) -10.34% General Manager Contingency NIA NIA Prior year reappropriation NIA NIA Other Non-Oper Expense 71,700 5,638 7.86% 66,062 9,662 (4,024) -41 .65% Matis, Supp, & Serv. 48,404,210 11,389,734 23.53% 37,014,476 8,270,932 3,118,802 37.71% Total Expenditures 103,553,100 24,073,232 23.25% 79,479,868 19,552,776 4,520,456 23.12% t Less: Cost Allocation (23,043,600) (4,597,551) 19.95% (18,446,049) (4,248,469) (349,082) 8.22% Net J. 0. Requirements 80,509,500 19,475,681 24.19% 61,033,819 15,304,307 4,171,374 27.26% Less: Revenues (3,500,000) (666,483) 19.04% (2,833,517) (709,582) 43,099 -6.07% Net J. 0. Expenses $ 77,009,500 $ 18,809,198 24.42% $ 58,200,302 $ 14,594,725 $ 4,214,473 28.88% Section 2 -Page 7 2003-04 First Quarter Report Summary of Expenses by Treatment Process For the Three Months Ended September 30, 2003 Increase Increase Actual Actual (Decrease) (Decrease) 9/30/03 9/30/02 $ % Treatment Process: Preliminary Treatment $ 1,224,904 $ 1,264,068 $ (39,164) -3.10% Primary Treatment 1,220,495 1,374,303 (153,808) -11.19% Secondary Treatment 2,119,011 844,284 1,274,727 150.98% Cryogenic Plant (Plant 2) 136,571 153,436 (16,865) -10.99% Effluent Disposal 225,360 125,202 100,158 80.00% Solids Handling 7,582,425 6,107,982 1,474,443 24.14% Cogeneration 1,984,630 1,911,876 72,754 3.81% Utilities 1,320,774 376,179 944,595 251.10% Electrical Distribution 175,379 162,454 12,925 7.96% Miscellaneous Buildings 1,616,044 1,128,144 487,900 43.25% Air Quality 396,010 438,070 (42,060) -9.60% Laboratory 1,474,078 1,418,309 55,769 3.93% Net Joint Operating Requirements 19,475,681 15,304,307 4,171,374 27.26% Less: Revenues (666,483) (709,582) 43,099 -6.07% Net Joint Operating Expenses $ 18,809,198 $ 14,594,725 $ 4,214,473 28.88% Section 2 -Page 8 l 625 525 425 6/30/2000 6/30/2001 Joint Operating Budget Review Staffing Trends Full Time Equivalents September 30, 2003 6/30/2002 6/30/2003 •Actual []Vacant 596 9/30/2003 At September 30, 2003, the total head count was 555 employees, or a full time equivalency of 545. Section 2 -Page 9 2003-04 First Quarter Report This Page Intentionally Left Blank Section 2 -Page 10 l L • l l . Capital Improvement Program By Type and Funding Source For the Three Months Ended September 30, 2003 Collections Equipment 2% Water Management Projects • 5% Systems· 9% Miscellaneous Support Projects 3% Utility Systems 2"/4 Process Secondary Related Treatment Special 3% Projecls -1 % Odor Control Projects • 1 % Primary Trealmant 30% Total Capital Improvement Expenditure -$24,253,596 $1,526,668 Support 6% $7,337,035 ReplacemenV Rehabilitation 31% $9,939,004 Additional Capacity 41% Total Capital Improvement Expenditure -$24,253,596 Section 3 -Page 1 CIP Review 2003-04 First Quarter Report Summary of Capital Improvement Construction Requirements -Current Year For the Three Months Ended September 30, 2003 Collection System Improvement Projects Collections Greenville Sullivan/Raitt STreet Manhole Rehab Santa Ana Trunk Sewer Rehab. Lower Main-Broadway MH Rehabilitation Continuous Feed Chemical Treatment Facility Trunk Sewer Mapping Project Carbon Cnyn Sewer and Pump Sin. Abandonment Santa Ana River Interceptor Relief Sewer Santa Ana River Interceptor Realignment and Prat. Abandonment of the Existing SARI in SA River Abandonment of Yorba Linda Pump Station Taft Branch Improvements Atwood Subtrunk Improvements Lower Santa Ana River Interceptor Improvements Euclid Relief Improvements -Reach "A" Euclid Relief Improvements -Reach "B" Santa Ana River Relief Sewer, Reach B Newhope-Placentia & Cypress Trunk Replacements Upper & Lower Newhope-Placentia MH Rehabilitation SARI and South Anaheim Interceptor MH Rehabilitaiton Rehabilitation of the Magnolia Trunk Sewer Trask Branch of the Hoover-Western Subtrunk Rehabilitation of the Westside Pump Station Westside Relief Interceptor/Los Alamitos MH Rehab Rehabilitaiton of the Seal Beach and Edinger PS Lining of 36" NPTB FM (June Box to 2nd Angle Pt.) Replacement of Back Bay Trunk Sewer Balboa Trunk Sewer Rehabilitaiton Replacement of the Bitter Point Pump Station Replacement of the Rocky Point Pump Station Rehabilitation of the 14th Street Pump Station Rehabilitation of the "A" Street Pump Station Rehabilitation of the Bay Bridge Pump Station Rehabilitation of the Crystal Cove Pump Station PCH FM Bitter Pl PS to Coast Trunk @ Bhurst & PCH Big Canyon Trunk Sewer Rehab & Replacement Abandonment of AB Trunk, Watson and Cal. Sewers Abandonment of Airbase Trunk Sewer-California St Abandonment of Airbase Trunk (Watson St) & College Covey Lane Pump Station Abandonment Sunflower interceptor Manhole Rehab Gisler Redhill Trunk Sewer Relocation -Phase 1 Gisler-Redhill System Improvements, Reach B Replacement of the College Ave Pump Station Rehabilitaiton of the MacArthur Pump Station Tustin West/Lemon Heights Trunk Improvements Lower Gisler-Redhill Trunk Relocation and MH Rehab Gisler Redhill Trunk lmprov & Orange Trunk lmprov Upper Gisler-Redhill MH Rehabilitaiton & Campus Dr Modifications to the Main Street Pump Station (28%) Newland Street lntereptor Sewer Protection Warner Avenue Relief Sewer $ Section 3 -Page 2 2003-04 Cashflow Budget 312,000 900,000 1,983,000 4,183,000 236,000 517,000 357,000 1,515,000 1,000,000 190,000 281 ,000 248,000 260,000 804,000 55,000 948,000 3,110,000 60,000 447,000 145,000 337,000 212,000 84,000 48,000 2,163,000 236,040 112,000 2,222,000 $ 2003-04 Actual at 9/30/03 25,287 16,127 50.324 (343,700) 10,376 472.772 (48,397) 23,139 89,515 12,106 59,503 2,676 5,667 47,928 3,584 1,379 30,383 391 475 8,172 21 ,846 7,289 149,346 285 1,351,281 $ 2003-04 Projected Outlay 312,000 900,000 1,983,000 4,183,000 236,000 517,000 357,000 1,515,000 1,000,000 190,000 281,000 2,680 248,000 260,000 804,000 55,000 948,000 3,110,000 60,000 447,000 145,000 337,000 212,000 84,000 48,000 2,163,000 236,040 112,000 2,222,000 (Continued) CIP Review Summary of Capital Improvement Construction Requirements -Current Year For the Three Months Ended September 30, 2003 2003-04 2003-04 2003-04 Cashflow Actual at Projected Budget 9/30/03 Outlay (Collections continued) Edinger/Bosla Chica Trunk Improvements Coast Trunk Sewer Rehabilitaiton 56,000 11,837 56,000 Facilities Engineering Projects-Collections 317,000 261,064 317,000 Bushard Trunk Sewer Rehabilitation 11 ,999,000 2,479,147 11,999,000 Pump Station P & IDs and Equipment Tagging 720,000 720,000 Additional Charges to CIP Closed at 6/30/03 270,818 270,820 Subtotal -Collections 36,057,040 5,020,620 36,330,540 Revenue Area 14 Modifications to the Main Street Pump Station (72%) 606,960 384,033 606,960 Additional Charges to GIP Closed at 6/30/03 91 100 Subtotal -Revenue Area 14 606,960 384,124 607,060 Total Collection System Improvement Projects 36,664,000 5.404,744 36,937,600 Treatment & Disposal Projects Collections Facilities Rehabilitate District Siphons By Adding Air Jumper 106,000 106,000 Replacement of the Ellis Ave Pump Station 1.999.000 111,034 1,999,000 Subtotal -Collections Facilities 2,105,000 111 .034 2,105,000 Headworks PLC Programming and Integration 393,000 4,330 393,000 Sunflower Drive Replacement 87,000 7,997 87,000 Headworks Rehabilitation/Refurbishment Headworks Improvements at Plant No. 2 4,561 ,000 1,108,018 4,561,000 Subtotal -Headworks 5,041,000 1,120,345 5.041.000 Primary Treatment Pri. Clarifiers 16-31 & Related Facilities 14,660,000 7,244,590 14,660,000 Primary Treatment Rehab/Refurb 53,000 6,727 53,000 Circular Clarifier Drive Replacement/Upgrade 1,142,000 220,986 1,142,000 Sludge Density Meter Upgrades 780,000 373 780.000 Subtotal -Primary Treatment 16,635.000 7,472,676 16,635,000 Secondary Treatment New Secondary Treatment System at Plant No. 1 451,000 75 451,000 Trickling Filter Rehabilitation and New Clarifiers 12,000,000 570,506 12,000,000 Activated Sludge Plant Rehabilitation 350,000 25,516 350,000 Sec Treat Monitoring & Cntrl Sys Upgrad 5,560,000 44,808 5,560,000 Secondary Plant Rehabilitation 243,000 63,784 243,000 New Trickling Filters 100,000 100,000 Oxygen Plant Replacement/Rehabilitation Assess 40,000 5,437 40,000 Activated Sludge Aeration Basin Selector Study 788,000 12,085 788,000 l Computer Modeling of Activated Sludge System 120,000 120,000 Subtotal -Secondary Treatment 19,652,000 722.211 19,652.000 Solids Handling & Digestion Sludge Digester Rehabilitation at Plant 1 519,000 519,000 Sludge Dewatering and Odor control at Plant 1 317,000 317,000 Ammonia Side Stream Treatment 557,000 Digesters, Centrifuge/Press & Cake Storage Hopper Solids Storage and Truck Loading Facility 1,077,000 52,962 1,077,000 (Continued) Section 3 -Page 3 2003-04 F:irst Quarter Report Summary of Capital Improvement Construction Requirements -Current Year For the Three Months Ended September 30, 2003 (Solids Handling & Digestion continued) Digesters and Sludge Cake Hoppers at Plant 2 Digester Rehabilitation at Plant 2 Sludge Dewatering and Odor Control at Plant 2 High Rate Digester Mix Pumps Mech. Seals Sludge Grinder Replacement Tule Ranch MainUBiosolids Management Needs Subtotal -Solids Handling & Digestion Ocean Outfall Systems Peak Flow Management Effluent Pumping Station Annex Short Term Outfall Bacteria Reduction NPDES Permit Renewal Subtotal -Ocean Outfall Systems Utility Systems Electrical Power System Single-line Diagrams Standby Power and Reliability Modifications Cable Tray Improvements at Plants 1 & 2 Central Generation Automation Area Classification STudies Implementation Plan Plant 1 66kV Substation Gas Compressor Addition at Plant No. 2 Utilities Rehabilitation and Refurbishment Fuel Station Replacement at Plant No. 2 Electrical Equipment Refurbishment and Protection Rehabilitation of Low Pressure Gas Holder Indoor/Outdoor Lighting Study Plant 1 Plant Water VFD Replacement Subtotal -Utility Systems Odor Control Related Projects Facilities Modifications for Odor Control Rehabilitation of Odor Control Facilities Subtotal -Odor Control Related Projects Plant Automation & Computerization Power Monitoring and Control Systems Plant Reinvention/Automation Project Document Management Data Integration Strategic Information Architecture (SIA) lnterneUlntranet Development CMMS System Replacement Source Control Programming Geographic Information System SCADA System Replacement Study SCADA Graphics Tagging Update Financial Information System Upgrade Information Technology Disaster Recovery Network Equipment Upgrade Subtotal Plant Automation & Computerization Section 3 -Page 4 2003-04 Cashflow Budget 86,000 264,000 32,000 20,000 100,000 2,972,000 1,500,000 8,001,000 3,651,000 355.000 13,507,000 911,000 5,045,000 1,116,000 2,002,000 5,062,000 102,000 193,000 1,478,000 433,000 197,000 422,000 127,000 107,000 17,195.000 1,500,000 711,000 2,211.000 169,000 903,000 569,000 50,000 235,000 250,000 600,000 423,000 300,000 255,000 880,000 304,000 604,000 5,542,000 2003-04 Actual at 9/30/03 35,066 88,028 83,989 154,280 1,993,691 20,557 2,252,517 272,915 7,603 44,424 66,702 77 28,127 4,663 3,628 5,543 1,353 4,202 439,237 33,664 88,795 122,459 84,140 8,128 52,752 3,683 103,208 26,643 419,648 10,229 708,431 2003-04 Projected Outlay 86,000 264,000 35,070 20,000 100.000 2,418,070 1,500,000 8,001,000 3,651,000 355.000 13,507,000 911,000 5,045,000 1,116,000 2,002,000 5,062,000 102,000 193,000 1,478,000 433,000 197,000 422,000 127,000 107,000 17,195.000 1,500,000 711.000 2,211,000 169,000 903,000 8,130 569,000 50,000 235,000 250,000 600,000 423,000 300,000 255,000 880,000 304,000 604.000 5,550,130 l l L CIP Review Summary of Capital Improvement Construction Requirements -Current Year For the Three Months Ended September 30, 2003 2003-04 2003-04 Cashflow Actual at Budget 9/30/03 Process Related Special Projects Standard Specifications Revisions and Updates 14,000 39 Effluent Pathogen REduction Alternatives Plan 930,000 Plant O & M Manual and SOP Project -Phase 1 150,000 27,770 Hazardous Energy Control Procedures 296,000 46,375 Corrosion Management 3,761,000 3,087 Special Projects: Anoxic Gas Flotation (AGF) 268,000 34,931 Special Projects: Anaerobic Baffled Reactor (ABR) 469,000 4,898 Special Projects: Primary Effluent Filtration 110,000 196 Special Projects: Oxygen Ionization/Odor Control 210,000 Special Projects: Microfiltration/Primary Effluent 595,000 100,897 Special Projects: Dewatering Options Comparison 99,000 Special Projects: Biotrickling Filter (BTF) 48,000 36,388 Special Projects: Ammonia Reduction Options 277,000 Subtotal -Process Related Special Projects 7,227,000 254,581 Miscellaneous & Support Projects Facilities Engineering Projects -Joint 1,145,000 14,124 Facilities Engineering Projects -Plant 1 1,145,000 21,311 Facilities Engineering Projects -Plant 2 1,145,000 91,726 Interim Fae Record & Eng Data Sys! Main! Services 234,000 Supplemental Full Secondary Treatment CEQA Doc 153,000 Supplement No. 1 to the 1999 Strategic Plan EIR 567,000 25,794 Long Range Biosolids Management Plan 2,669,000 22,120 Strategic Plan Update 1,420,000 87,958 Modifications to Existing Mech Systems 150,000 Building Rehabilitation/Refurbishment 929,000 Space Allocation and Interior Renovation 2,615,000 21,687 Laboratory Rehabilitation 169,000 1,521 Tenant Improvements to Rebuild Shop 89,000 29,296 Engineering Trailer Complex 166,000 141,454 Support Building Power System Modifications 205,000 Security System Improvements 569,000 10,581 Small Cap. Equip. Replacement Project 500,000 149,369 Asset Management Program 4,226,000 Warehouse Reinvention Project 190,000 3,418 Plume Modeling 128,000 30,000 Plant 2 Maintenance Building Modifications 300.000 Subtotal -Miscellaneous & Support Projects 18,714,000 650,359 Water Management Projects Groundwater Replenishment System 43,125,000 1,134,571 Water Conservation 506,000 3,484 Co-op Projects, lnflow/lnfilt. Reduction 4,000,000 Long Term Permanent Monitoring Program 713,000 153.338 Subtotal -Water Management Projects 48,344,000 1,291,393 Additional Charges to CIP Completed at 6/30/03 2,992,059 Total Treatment and Disposal Projects 159,145,000 18,225.330 Capital Equipment Purchases 4,143.600 623,522 Total Collections and Treatment & Disposal Projects and Capital Equipment Purchases $199,952,600 $ 24,253,596 Section 3 -Page 5 2003-04 Projected Outlay 14,000 930,000 150,000 296,000 3,761 ,000 268,000 469,000 110,000 210,000 595,000 99,000 48,000 277,000 7,227,000 1,145,000 1,145,000 1,145,000 234,000 153,000 567,000 2,669,000 1,420,000 150,000 929,000 2,615,000 169,000 89,000 166,000 205,000 569,000 500,000 4,226,000 190,000 128,000 300,000 18,714.000 43,125,000 506,000 4,000,000 713.000 48,344,000 2.992,060 161 ,591,260 4,143.600 $202,672,460 2003-04 First Quarter Report Summary of Capital Improvement Construction Requirements -Project Life For the Three Months Ended September 30, 2003 Current Total Approved June 30, 2003 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30, 2004 Budget Collection Sl£stem lm11rovement Projects Collections Greenville Sullivan/Raitt STreet Manhole Rehab $ 3,269,000 $ $ $ $ 3,269,000 Santa Ana Trunk Sewer Rehab. 14,638,000 403,673 403,673 14,234,327 Lower Main-Broadway MH Rehabilitation 1,467,000 1,467,000 Continuous Feed Chemical Treatment Facility 451,000 40 312,000 312,040 138,960 Trunk Sewer Mapping Project 2,013,000 1,620,747 900,000 2,520,747 {507,747) Carbon Cnyn Sewer and pump Stn. Abandonment 3,467,000 356,375 1,983,000 2,339,375 1,127,625 Santa Ana River Interceptor Relief Sewer 17,272,000 17,272,000 Santa Ana River Interceptor Realignment and Pro!. 63,620,000 2,334,141 4,183,000 6,517,141 57,102,859 Abandonment of the Existing SARI in SA River 8,456,000 151 151 8,455,849 Abandonment of Yorba Linda Pump Station 955,000 955,000 Taft Branch Improvements 3,508,000 9,386 9,386 3,498,614 Atwood Subtrunk Improvements 3,187,000 110,352 110,352 3,076,648 Lower Santa Ana River Interceptor Improvements 35,012,000 35,012,000 Euclid Relief Improvements -Reach "A" 20,856,000 13,510 13,510 20,842,490 Euclid Relief Improvements -Reach "B" 10,319,000 10,319,000 Santa Ana River Relief Sewer, Reach B 32,702,000 32,702,000 Newhope-Placentia & Cypress Trunk Replacements 28,785,000 28,785,000 Upper & Lower Newhope-Placentia MH Rehabilitation 4,351,000 4,351,000 SARI and South Anaheim Interceptor MH Rehabilitaiton 3,087,000 3,087,000 Rehabilitation of the Magnolia Trunk Sewer 48,868,000 48,868,000 Trask Branch of the Hoover-Western Subtrunk 1,410,000 1,410,000 Rehabilitation of the Westside Pump Station 2,991,000 199,375 236,000 435,375 2,555,625 Westside Relief Interceptor/Los Alamitos MH Rehab 17,136,000 17,136,000 Rehabilitaiton of the Seal Beach and Edinger PS 8,574,000 8,574,000 Lining of 36" NPTB FM (June Box to 2nd Angle Pt.) 1,996,000 1,348,522 517,000 1,865,522 130,478 Replacement of Back Bay Trunk Sewer 7,189,000 6,781 ,547 357,000 7,138,547 50,453 Balboa Trunk Sewer Rehabilitaiton 5,759,000 5,759,000 Replacement of the Bitter Point Pump Station 8,159,000 402,722 1,515,000 1,917,722 6,241,278 Replacement of the Rocky Point Pump Station 9,362,000 190,663 1,000,000 1,190,663 8,171,337 Rehabilitation of the 14th Street Pump Station 4,617,000 900,058 190,000 1,090,058 3,526,942 Rehabilitation of the "A" Street Pump Station 5,013,000 1,279,892 281,000 1,560,892 3,452,108 Rehabilitation of the Bay Bridge Pump Station 2,612,000 146,204 2,680 148,884 2,463,116 Rehabilitation of the Crystal Cove Pump Station 1,512,000 184,169 248,000 432,169 1,079,831 PCH FM Bitter Pt PS to Coast Trunk @ Bhurst & PCH 13,927,000 47,196 260,000 307,196 13,619,804 Big Canyon Trunk Sewer Rehab & Replacement 2,534,000 804,000 804,000 1,730,000 Abandonment of AB Trunk, Watson and Cal. Sewers 351,000 303,603 55,000 358,603 (7,603) Abandonment of Airbase Trunk Sewer-California St 975,000 4,885 948,000 952,885 22,115 Abandonment of Airbase Trunk (Watson St) & College 3,276,000 3,110,000 3,110,000 166,000 Covey Lane Pump Station Abandonment 153,000 156,690 60,000 216,690 (63,690) Sunflower interceptor Manhole Rehab 3,991,000 566,134 447,000 1,013,134 2,977,866 Gisler Redhill Trunk Sewer Relocation -Phase 1 936,000 145,000 145,000 791,000 Gisler-Redhill System Improvements, Reach B 6,893,000 189,220 337,000 526,220 6,366,780 Replacement of the College Ave Pump Station 6,021 ,000 7,023 212,000 219,023 5,801 ,977 Rehabilitaiton of the MacArthur Pump Station 2,355,000 25,691 84,000 109,691 2,245,309 Tustin West/Lemon Heights Trunk Improvements 5,926,000 48,000 48,000 5,878,000 Lower Gisler-Redhill Trunk Relocation and MH Rehab 6,615,000 6,615,000 Gisler Redhill Trunk lmprov & Orange Trunk lmprov 23,561,000 2,163,000 2,163,000 21,398,000 Upper Gisler-Redhill MH Rehabilitaiton & Campus Dr 2,121,000 2,121,000 Modifications to the Main S\reet Pump Station (28%) 271,320 18,455 236,040 254,495 16,825 Newland Street lntereptor Sewer Protection 127,000 38,541 112,000 150,541 {23,541) Warner Avenue Relief Sewer 7,480,000 692,136 2,222,000 2,914,136 4,565,864 (Continued Section 3 -Page 6 CIP Review Summary of Capital Improvement Construction Requirements -Project Life For the Three Months Ended September 30, 2003 Current Total Approved June 30, 2003 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30, 2004 Budget (Collections continued) Edinger/Basia Chica Trunk Improvements 2,126,000 2,126,000 Coast Trunk Sewer Rehabilitaiton 16,635,000 8,411 56,000 64,411 16,570,589 Facilities Engineering Projects-Collections 5,400,000 190,468 317,000 507,468 4,892,532 Bushard Trunk Sewer Rehabilitation 39,393,000 9,085,557 11,999,000 21 ,084,557 18,308,443 Pump Station P & IDs and Equipment Tagging 720,000 720,000 720,000 Additional Charges to CIP Closed at 6/30/03 69.541 .725 8,725,210 270,820 8.996.030 60,545,695 Subtotal -Collections 603,942,045 36,340,747 36,330,540 72,671,287 531,270,758 Revenue Area 14 Modifications to the Main Street Pump Station (72%) 697,680 47,455 606,960 654,415 43,265 Additional Charges to CIP Closed at 6/30/03 73,121 100 73,221 [73,221) Subtotal -Revenue Area 14 697,680 120,576 607,060 727,636 (29,956) Total Collection System Improvement Projects 604,639.725 36,461,323 36,937,600 73,398,923 531 ,240,802 r Treatment & Disposal Projects Collections Facilities Rehabilitate District Siphons By Adding Air Jumper 5,731,000 106,000 106,000 5,625,000 Replacement of the Ellis Ave Pump Station 33,837,000 678,122 1.999.000 2.677,122 31,159,878 Subtotal -Collection Facilities 39.568.000 678,122 2,105,000 2.783,122 36,784,878 Headworks PLC Programming and Integration 515,000 44,921 393,000 437,921 77,079 Sunflower Drive Replacement 815,000 660,034 87,000 747,034 67,966 Headworks Rehabilitation/Refurbishment 37,510,000 69,746 69,746 37,440,254 Headworks Improvements at Plant No. 2 226.130.000 9,149,698 4,561 ,000 13.710,698 212,419,302 Subtotal -Headworks 264,970,000 9,924,399 5,041,000 14,965,399 250.004,601 Primary Treatment Pri. Clarifiers 16-31 & Related Facilities 88,561 ,000 43,987,660 14,660,000 58,647,660 29,913,340 Primary Treatment Rehab/Refurb 55,093,000 24,625 53,000 77,625 55,015,375 Circular Clarifier Drive Replacement/Upgrade 3,467,000 304,870 1,142,000 1,446,870 2,020,130 Sludge Density Meter Upgrades 800,000 21 ,126 780.000 801,126 (1,126) Subtotal -Primary Treatment 147.921.000 44,338,281 16,635,000 60,973.281 86 947,719 Secondary Treatment New Secondary Treatment System at Plant No. 1 251,100,000 451,000 451,000 250,649,000 Trickling Filter Rehabilitation and New Clarifiers 46,210,000 4,375,107 12,000,000 16,375,107 29,834,893 Activated Sludge Plant Rehabilitation 23,870,000 15,716 350,000 365,716 23,504,284 Sec Treat Monitoring & Cntr1 Sys Upgrad 8,703,000 569,267 5,560,000 6,129,267 2,573,733 Secondary Plant Rehabilitation 20,474,000 112,812 243,000 355,812 20,118,188 New Trickling Fillers 128,727,000 100,000 100,000 128,627,000 Oxygen Plant Replacement/Rehabilitation Assess 2,145,000 109,901 40,000 149,901 1,995,099 Activated Sludge Aeration Basin Selector Study 945,000 97,459 788,000 885,459 59.541 Computer Modeling of Activated Sludge System 120,000 120,000 120.000 Subtotal -Secondary Treatment 482,294,000 5,280,262 19.652,000 24,932,262 457.361 .738 Solids Handling & Digestion Sludge Digester Rehabilitation at Plant 1 30,223,000 519,000 519,000 29,704,000 Sludge Dewatering and Odor control at Plant 1 62,905,000 317,000 317,000 62,588,000 Ammonia Side Stream Treatment 18,600,000 18,600,000 Digesters, Centrifuge/Press & Cake Storage Hopper 61,605,000 61,605,000 L Solids Storage and Truck Loading Facility 14,582,000 13,561,758 1,077,000 14,638,758 (56,758) {Continued) Section 3 -Page 7 2003-04 First Quarter Repo rt Summary of Capital Improvement Construction Requirements -Project Life For the Three Months Ended September 30, 2003 Current Total Approved June 30, 2003 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30, 2004 Budget (Solids Handling & Digestion continued) Digesters and Sludge Cake Hoppers at Plant 2 42,325,000 86,000 86,000 42,239,000 Digester Rehabilitation at Plant 2 25,621,000 264,000 264,000 25,357,000 Sludge Dewatering and Odor Control at Plant 2 79,082,000 79,082,000 High Rate Digester Mix Pumps Mech. Seals 517,000 507,904 35,070 542,974 (25,974) Sludge Grinder Replacement 224,000 20,000 20,000 204,000 Tule Ranch Maint/Biosolids Management Needs 200,000 100,000 100.000 100,000 Subtotal -Solids Handling & Digestion 335,884,000 14,069,662 2,418,070 16.487,732 319,396,268 Ocean Outfall Systems Peak Flow Management 11,257,000 1,026,649 1,500,000 2,526,649 8,730,351 Effluent Pumping Station Annex 50,757,000 4,256,790 8,001,000 12,257,790 38,499,210 Short Term Outfall Bacteria Reduction 7,578,000 4,760,267 3,651,000 8,411,267 (833,267) NPDES Permit Renewal 1,512,000 991,811 355,000 1,346,811 165,189 Subtotal • Ocean Outfall Systems 71 ,104,000 11,035,517 13,507,000 24,542,517 46,561,483 Utility Systems Electrical Power System Single-line Diagrams 3,368,000 286 911,000 911,286 2,456,714 Standby Power and Reliability Modifications 17,643,000 13,047,161 5,045,000 18,092,161 (449,161) Cable Tray Improvements at Plants 1 & 2 29,526,000 1,099,287 1,116,000 2,215,287 27,310,713 Central Generation Automation -8,038,000 627,390 2,002,000 2,629,390 5,408,610 Area Classification STudies Implementation Plan 21 ,283,000 338 5,062,000 5,062,338 16,220,662 Plant 1 66kV Substation 4,645,000 102,000 102,000 4,543,000 Gas Compressor Addition at Plant No. 2 4,326,000 92,792 193,000 285,792 4,040,208 Utilities Rehabilitation and Refurbishment 4,929,000 818,037 1,478,000 2,296,037 2,632,963 Fuel Station Replacement at Plant No. 2 3,231,000 4,411 433,000 437,411 2,793,589 Electrical Equipment Refurbishment and Protection 3,312,000 458 197,000 197,458 3,114,542 Rehabilitation of Low Pressure Gas Holder 422,000 422,000 422,000 Indoor/Outdoor Lighting Study 132,000 127,000 127,000 5,000 Plant 1 Plant Water VFD Replacement 2,334,000 107,000 107 000 2,227,000 Subtotal -Utility Systems 103,189,000 15,690,160 17,195,000 32,885,160 70,303,840 Odor Control Related Projects Facilities Modifications for Odor Control 4,127,000 644,339 1,500,000 2,144,339 1,982,661 Rehabilitation of Odor Control Facilities 33,224,000 231,664 711,000 942,664 32.281,336 Subtotal -Odor Control Related Projects 37,351,000 876,003 2,211,000 3,087,003 34,263,997 Plant Automation & Computerization Power Monitoring and Control Systems 3,790,000 24,177 169,000 193,177 3,596,823 Plant Reinvention/Automation Project 21,915,000 13,536,780 903,000 14,439,780 7,475,220 Document Management 864,000 668,668 8,130 676,798 187,202 Data Integration 4,334,000 3,193,482 569,000 3,762,482 571,518 Strategic Information Architecture (SIA) 724,000 440,513 50,000 490,513 233,487 Internet/Intranet Development 650,000 279,653 235,000 514,653 135,347 CMMS System Replacement 3,789,000 250,000 250,000 3,539,000 Source Control Programming 2,956,000 1,357,105 600,000 1,957,105 998,895 Geographic Information System 4,157,000 408,397 423,000 831,397 3,325,603 SCADA System Replacement Study 300,000 300,000 300,000 SCADA Graphics Tagging Update 425,000 49,169 255,000 304,169 120,831 Financial Information System Upgrade 3,213,000 1,591 ,361 880,000 2,471,361 741,639 Information Technology Disaster Recovery 332,000 34,075 304,000 338,075 (6,075) Network Equipment Upgrade 2,901 ,000 1,145,146 604.000 1,749,146 1 151 854 Subtotal -Plant Automation & Computerization 50,350,000 22,728.526 5,550,130 28,278,656 22.071,344 Section 3 -Page 8 CIP Review Summary of Capital Improvement Construction Requirements -Project Life For the Three Months Ended September 30, 2003 Current Total Approved June 30, 2003 Year Projected Remaining Project Accumulated Projected Cost at Future ,. -Budget Cost Cost June 30, 2004 Budget I Process Related Special Projects Standard Specifications Revisions and Updates 657,000 478,837 14,000 492,837 164,163 Effluent Pathogen REduction Alternatives Plan 1,549,000 930,000 930,000 619,000 Plant O & M Manual and SOP Project -Phase 1 4,000,000 329,004 150,000 479,004 3,520,996 Hazardous Energy Control Procedures 1,190,000 623,778 296,000 919,778 270,222 Corrosion Management 7,548,000 136,039 3,761 ,000 3,897,039 3,650,961 Special Projects: Anoxic Gas Flotation (AGF) 798,000 524,679 268,000 792,679 5,321 , Special Projects: Anaerobic Baffled Reactor (ABR) 514,000 51,878 469,000 520,878 (6,878) Special Projects: Primary Effluent Filtration 470,000 419,428 110,000 529,428 (59,428) Special Projects: Oxygen Ionization/Odor Control 210,000 210,000 210,000 r -Special Projects: Microfiltralion/Primary Effluent 4,095,000 2,838,554 595,000 3,433,554 661,446 ! Special Projects: Dewatering Options Comparison 99,000 99,000 99,000 Special Projects: Biotrickling Filter (BTF) 328,000 399,606 48,000 447,606 (119,606) Special Projects: Ammonia Reduction Options 277,000 277,000 277.000 f Subtotal -Process Related Special Projects 21,735,000 5,801,803 7.227.000 13,028,803 8.706,197 Miscellaneous & Support Projects Facilities Engineering Projects -Joint 18,200,000 254,903 1,145,000 1,399,903 16,800,097 Facilities Engineering Projects -Plant 1 18,200,000 242,999 1,145,000 1,387,999 16,812,001 Facilities Engineering Projects -Plant 2 18,200,000 293,995 1,145,000 1,438,995 16,761,005 Interim Fae Record & Eng Data Syst Maint Services 628,000 383,568 234,000 617,568 10,432 Supplemental Full Secondary Treatment CEQA Doc 425,000 153,000 153,000 272,000 Supplement No. 1 to the 1999 Strategic Plan EIR 832,000 316,272 567,000 883,272 (51,272) Long Range Biosolids Management Plan 2,833,000 584,297 2,669,000 3,253,297 (420,297) Strategic Plan Update 3,419,000 360,033 1,420,000 1,780,033 1,638,967 Modifications to Existing Mech Systems 3,007,000 272,215 150,000 422,215 2,584,785 Building Rehabilitation/Refurbishment 1,455,000 169 929,000 929,169 525,831 Space Allocation and Interior Renovation 16,388,000 648,491 2,615,000 3,263,491 13,124,509 Laboratory Rehabilitation 1,829,000 169,000 169,000 1,660,000 Tenant Improvements to Rebuild Shop 321 ,000 8,653 89,000 97,653 223,347 Engineering Trailer Complex 2,006,000 1,978,444 166,000 2,144,444 (138,444) Support Building Power System Modifications 2,751,000 205,000 205,000 2,546,000 Security System Improvements 1,100,000 1,054,414 569,000 1,623,414 (523,414) Small Cap. Equip. Replacement Project 3,000,000 1,638,532 500,000 2,138,532 861,468 Asset Management Program 16,555,000 4,226,000 4,226,000 12,329,000 Warehouse Reinvention Project 600,000 83,290 190,000 273,290 326,710 Plume Modeling 377,000 134,764 128,000 262,764 114,236 Plant 2 Maintenance Building Modifications 300.000 300,000 300.000 i Subtotal -Miscellaneous & Support Projects 112,426,000 8.255.039 18.714.000 26,969,039 85,456.961 ' Water Management Projects Groundwater Replenishment System 236,206,000 15,447,736 43,125,000 58,572,736 177,633,264 L Water Conservation 4,644,000 2,886,237 506,000 3,392,237 1,251,763 Co-op Projects, Inflow/Infill. Reduction 72,000,000 4,000,000 4,000,000 68,000,000 Long Term Permanent Monitoring Program 2.852,000 4.350,529 713,000 5.063.529 (2,211,529) Subtotal -Water Management Projects 315,702,000 22,684,502 48.344.000 71,028,502 244.673.498 l_ Additional Charges to CIP Completed at 6/30/03 142,178,333 83,124,031 2.992.060 86.116,091 56.062.242 Total Treatment and Disposal Projects 2.124,672,333 244,486,307 161,591,260 406.077.567 1,718,594,766 Capital Equipment Purchases 4,143,600 4,143,600 4.143,600 Total Collections and Treatment & Disposal Projects and Capital Equipment Purchases $2. 733,455,658 $280,947,630 $202,672,460 $483,620,090 $2,249,835,568 L Section 3 -Page 9 2003-04 First Quarter Report This Page Intentionally Left Blank Section 3 -Page 10 Budget Review by Revenue Area All Revenue Areas Operating and Capital Facilities Budget Review For the Three Months Ended September 30, 2003 Operating Budget Review 2003-04 Year-To-Remaining Budget Date Budget CASH RECEIPTS: Tax Allocations/Subventions (Share of 1%) $ 41,200,000 $ 2,909,415 $ 38,290,585 Other User Fees 99,277,000 3,694,026 95,582,974 Connection Fees 9,120,000 1,438,797 7,681,203 Sale of Capacity Rights 6,195,000 6,195,000 Capital Assessment (IRWD) 2,259,000 783,298 1,475,702 Debt Proceeds 280,000,000 280,000,000 Interest & Miscellaneous Revenue 43,534,000 2,699,331 40,834,669 Total Receipts $ 481,585,000 $291,524,867 $190,060,133 CASH DISBURSEMENTS: Share of Joint Works Capital Improvements $ 161,184,000 $ 18,848,852 $142,335,148 Collection Activity Capital Improvements 38,769,000 5,404,744 33,364,256 COP Retirement and Interest Expense 36,950,000 15,646,943 21,303,057 Share of Joint Works Operating Expenses 77,010,000 18,809,198 58,200,802 Revenue Area Operating & Other Expenses 12,500,000 2,622,526 9,877,474 Total Disbursements $ 326,413,000 $ 61,332,263 $265,080,737 Capital Facilities Budget Review Balance Adjustments Transfer to 07/01/03 & Additions Fixed Assets CONSTRUCTION IN PROGRESS: Collection Activity Construction in Progress $ 33,884,895 $ 5,404,744 $ Share of Joint Works Treatment Plant CIP 210,329,344 18,848,852 Subtotal 244,214,239 24,253,596 PROPERTY, PLANT & EQUIPMENT (at cost): Land and Property Rights 10,398,595 Collection Lines and Pump Stations 396,426,189 Treatment Facilities 650,908,862 Disposal Facilities 90,161,860 General Plant and Administrative Facilities 124,120,780 Subtotal 1,272,016,286 Total Property, Plant & Equipment & CIP $1,516,230,525 $ 24,253,596 $ Section 4 -Page 1 Year-To-Date % of Budget 7.06% 3.72% 15.78% 0.00% 34.67% 100.00% 6.20% 60.53% 11.69% 13.94% 42.35% 24.42% 20.98% 18.79% Balance 9/30/03 $ 39,289,639 229,178,196 268,467,835 10,398,595 396,426,189 650,908,862 90,161,860 124,120,780 1,272,016,286 $1,540,484,121 2002-03 Third Quarter Report Consolidated Revenue Area Operating and Capital Facilities Budget Review For the Three Months Ended September 30, 2003 Operating Budget Review 2003-04 Year-To-Remaining Budget Date Budget CASH RECEIPTS: Tax Allocations/Subventions (Share of 1 %) $ 41,200,000 $ 2,909,415 $ 38,290,585 Other User Fees 96,277,000 2,989,271 93,287,729 Connection Fees 9,120,000 1,438,797 7,681,203 Sale of Capacity Rights 6,004,000 6,004,000 Capital Assessment (IRWD) Debt Proceeds 280,000,000 280,000,000 Interest & Miscellaneous Revenue 42,079,000 2,670,568 39,408,432 Total Receipts $ 474,680,000 $290,008,051 $184,671,949 CASH DISBURSEMENTS: Share of Joint Works Capital Improvements $ 154,269,000 $ 18,270,192 $135,998,808 Collection Activity Capital Improvements 38,698,000 5,020,620 33,677,380 COP Retirement and Interest Expense 36,950,000 15,646,943 21,303,057 Share of Joint Works Operating Expenses 74,633,000 17,904,819 56,728,181 Revenue Area Operating & Other Expenses 12,193,000 2,531,122 9,661,878 Total Disbursements $ 316,743,000 $ 59,373,696 $257,369,304 Capital Facilities Budget Review Balance Adjustments Transfer to 07/01/03 & Additions Fixed Assets CONSTRUCTION IN PROGRESS: Collection Activity Construction in Progress $ 33,696,471 $ 5,020,620 $ Share of Joint Works Treatment Plant CIP 203,872,231 18,270,192 Subtotal 237,568,702 23,290,812 PROPERTY, PLANT & EQUIPMENT (at cost): Land and Property Rights 9,891,731 Collection Lines and Pump Stations 367,023,515 Treatment Facilities 630,926,572 Disposal Facilities 87,397,008 General Plant and Administrative Facilities 120,330,717 Subtotal 1,215,569,543 Total Property, Plant & Equipment & CIP $1,453, 138,245 $ 23,290,812 $ Section 4 -Page 2 Year-to-Date % of Budget 7.06% 3.10% 15.78% 100.00% 6.35% 61.10% 11.84% 12.97% 42.35% 23.99% 20.76% 18.75% Balance 9/30/03 $ 38,717,091 222,142,423 260,859,514 9,891,731 367,023,515 630,926,572 87,397,008 120,330,717 1,215,569,543 $1,476,429,057 Budget Review by Revenue Area Revenue Area No.14 Operating and Capital Facilities Budget Review For the Three Months Ended September 30, 2003 Operating Budget Review 2003-04 Year-To-Remaining Budget Date Budget CASH RECEIPTS: Tax Allocations/Subventions (Share of 1 %) $ $ $ Other User Fees 3,000,000 704,755 2,295,245 Connection Fees Sale of Capacity Rights 191,000 191,000 Capital Assessment (IRWD) 2,259,000 783,298 1,475,702 Debt Proceeds Interest & Miscellaneous Revenue 1,455,000 28,763 1,426,237 Total Receipts $ 6,905,000 $ 1,516,816 $ 5,388,184 CASH DISBURSEMENTS: Share of Joint Works Capital Improvements $ 6,915,000 $ 578,660 $ 6,336,340 Collection Activity Capital Improvements 71,000 384,124 (313,124) COP Retirement and Interest Expense Share of Joint Works Operating Expenses 2,377,000 904,379 1,472,621 Revenue Area Operating & Other Expenses 307,000 91,404 215,596 Total Disbursements $ 9,670,000 $ 1,958,567 $ 7,711,433 Capital Facilities Budget Review Balance Adjustments Transfer to 07/01/03 &Additions Fixed Assets CONSTRUCTION IN PROGRESS: Collection Activity Construction in Progress $ 188,424 $ 384,124 $ Share of Joint Works Treatment Plant CIP 6,457,113 578,660 Subtotal 6,645,537 962,784 PROPERTY, PLANT & EQUIPMENT (at cost): Land and Property Rights 506,864 Collection Lines and Pump Stations 29,402,674 Treatment Facilities 19,982,290 Disposal Facilities 2,764,852 General Plant and Administrative Facilities 3,790,063 Subtotal 56,446,743 Total Property, Plant & Equipment & CIP $ 63,092,280 $ 962,784 $ Section 4 -Page 3 Year-To-Date % of Budget N/A 23.49% N/A 0.00% 34.67% N/A 1.98% 21.97% 8.37% 541.02% NIA 38.05% 29.77% 20.25% Balance 9/30/03 $ 572,548 7,035,773 7,608,321 506,864 29,402,674 19,982,290 2,764,852 3,790,063 56,446,743 $ 64,055,064 2003-04 First Quarter Report This Page Intentionally Left Blank Section 4 -Page 4 Self Insurance Review General Liability Fu·nd Budget Review For the Three Months Ended September 30, 2003 Percent Actual of Budget Remaining Actual 2003-04 Through Through 2003-04 Through Increase Budget 9/30/03 9/30/03 Budget 9/30/02 (Decrease) Revenues: In-Lieu Premiums $2,200,000 $675,000 30.68% $1,525,000 $475,000 $200,000 Interest & Miscellaneous 20,000 191 0.96% 19,809 15,105 (14,914) Allocation from Other Funds 500,000 1,456 0.29% 498,544 467 989 Total Revenues 2,720,000 676.647 24.88% 2,043,353 490.572 186,075 I Expenses: Benefits/Claims 300,000 65,548 21.85% 234,452 8,551 56,997 Contractual Services 1,000 300 30.00% 700 300 Legal Services 325,000 34,611 10.65% 290,389 83,205 (48,594) Professional Services 5,000 0.00% 5,000 711 (711) Service Department Allocation 1,550,000 354,498 22.87% 1,195,502 389,214 (34,716) Subtotal 2,181,000 454,957 20.86% 1,726,043 481,681 (26,724) Excess Loss Policy 190,000 97,053 51.08% 92,947 47,464 49,589 Total Expenses 2.371.000 552,010 23.28% 1,818,990 529,145 22,865 Excess Revenue (Expenses) 349,000 124,637 35.71% $ 224,363 (38,573) 163,210 Beginning Reserves 183,800 94,372 301,883 (207,511) Ending Reserves $ 532,800 $219,009 $263,310 $ (44,301} Section 5 -Page 1 2003-04 First Quarter Report Workers' Compensation Fund Budget Review For the Three Months Ended September 30, 2003 Percent Actual of Budget Remaining 2003-04 Through Through 2003-04 Budget 9/30/03 9/30/03 Budget Revenues: In-Lieu Premiums $1,000,000 $250,000 25.00% $750,000 Interest & Miscellaneous 7 000 36 0.51% 6,964 Total Revenues 1,007,000 250,036 24.83% 756,964 Expenses: Benefits/Claims 350,000 62,209 17.77% 287,791 Contractual Services 25,000 6,250 25.00% 18,750 Legal Services 25,000 2,149 8.60% 22,851 Professional Services 25,000 3,350 13.40% 21,650 Service Department Allocations 50 000 3,912 7.82% 46,088 Subtotal 475,000 77,870 16.39% 397,130 Excess Loss Policy 105,000 40,171 38.26% 64,829 Total Expenses 580 000 118.041 20.35% 461,959 Excess Revenue (Expenses) 427,000 131,995 30.91% $296,005 Beginning Reserves 22,900 (32,841) Ending Reserves $ 449.900 $ 99.154 Section 5 -Page 2 Actual Through Increase 9/30/02 (Decrease) $125,000 $125,000 2,877 {2,841 ) 127 877 122,159 64,754 (2,545) 6,250 1,575 574 2,466 884 5,964 (2,052) 81,009 (3,139) 17,273 22,898 98,282 19 759 29,595 102,400 (79,645) 46,804 $ (50,050) $149,204 l FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Michael White, Controller · Meeting Date 11/12/03 Item Number FAHR03-87 SUBJECT: TREASURER'S REPORT FOR THE MONTH OF OCTOBER 2003 GENERAL MANAGER'S RECOMMENDATION Receive and file Treasurer's Report for the month of October 2003. SUMMARY To Bel. of Dir. 11/19/03 Item Number 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. Some funds are also deposited in the State of California Local Agency Investment Fund for liquidity. 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 Investment Policy. The portfolio contains no reverse repurchase agreements. As shown on page 2 of the attached PIMCO's Performance Monitoring and Reporting Report for the Long-Term Operating Monies, there is a investment policy compliance exception pertaining to the holding of two securities within PIMCO's Long-Term Operating Monies Portfolio that had an acceptable rating at the time of purchase but has since fallen below the minimum rating allowed by the investment policy. The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P, with at least a BBB rating in the event of a split rating, at the time of purchase. The first of these rating exceptions pertains to the holding of a United Airlines (UAL) Asset Backed Security with a par value of $1.6 million, representing 0.4 percent of the portfolio holdings, whose rating from Moody's has fallen several times, from A3 to BA 1, then to BA3, 83, B, and finally to CA. Likewise, the rating from Standard & Poor's has also fallen several times, first from A-to BBB, then to BB, then to B+, 8-, and finally to CCC+. Although these ratings are less than what is required at the time of purchase, PIMCO believes, based on the financial strength of UAL and the underlying collateral of the security, that the District would suffer an unwarranted loss if the security was sold at this time. The second ratings exception pertains to the holding of a $5 million par of the Philip Morris-Altria corporate bond with an April 2004 maturity, representing 1.3 percent of the portfolio holdings, whose rating with Moody's has fallen from A2 to Baa1 and then to C:\Documents and Settingslpope\Local Settings\Temporary Internet Files\OLKBF\03-87.TREASRPT.doc Page 1 Baa2, and with S&P from A-to BBB. PIMCO believes based on the underlying assets of the parent company, that the District would again suffer an unwarranted loss if the security was sold at this time. The District's investment policy does not require any action because of "credit watch" notices or the decline in credit standing. However, PIMCO will continue to monitor the credit for these two securities very closely. 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. BUDGET IMPACT D This item has been budgeted. (Line item: IZI Not applicable (information item) 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. Also provided is a summary of monthly investment balances and transactions within the State of California Local Agency Investment Fund (LAIF). In addition, the remaining $117.6 million proceeds from the 2003 COP debt issuance available for future capital improvements is being managed and invested by PIMCO with Union Bank of California serving as the Trustee. When combined with the reserves of the existing outstanding debt issues, total debt service reserves with trustees totals $179,510,406. 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. The table on the following page details the book balances of the District's investment accounts at month-end. A graphical representation of month-end balances is shown on the attached bar chart. C:\Documents and Settings\pope\Local Settings\Temporary Internet Files\OLKBF\03-87.TREASRPT.doc Page2 Book Balances Estimated Investment Accounts October 31, 2003 Yield(%) State of Calif. LAIF $ 35,500,246 1.60 Union Bank Checking Account 724,723 0.94 (1) PIMCO -Short-term Portfolio 37,478,445 1.40 PIMCO -Long-term Portfolio 380,081,334 2.84 Petty Cash 5 000 N/A TOTAL $453 Z89,748 2.63 Debt SeNice ReseNes w/Trustees $1Z9 51Q 4Q6 2.11 ( 1) This is the annualized yield for the month of September. The October annualized rate was not available as of the date of this report. ATTACHMENTS 1. Graph of Monthly Investment Balances by Type -Last Six Months 2. Investment Transactions and Balances in the State Local Agency Investment Fund 3. PIMCO Monthly Investment Recap & Yield Analysis Report 4. PIMCO Performance Monitoring Report -Liquid Operating Monies 5. PIMCO Performance Monitoring Report-Long-Term Operating Monies 6. Mellon Trust Asset Summary by Asset Type with Sectors -Liquid Operating Monies 7. Mellon Trust Asset Summary by Asset Type with Sectors -L-T Operating Monies 8. Mellon Trust Yield Analysis Report 9. Mellon Trust Asset Detail -Consolidated 10. Mellon Trust Transaction Detail -Consolidated MW:lc C:\Documents and Settings\pope\Local Settings\Temporary Internet Files\OLKBF\03-87.TREASRPT.doc Page 3 Monthly Investment Ba lances by Type- Last Six Months $700,000,000 ,--------------------------------~ $600,000,000 ~"!----------' $500,000,000 -+----------~ $400,000,000 +---I $300,000,000 -1-·~~L--______J¢000~ $200,000,000 ___,____, $100,000,000 -1 mm---e~ii~n-~--11~1~1---t~L&---l::ffl~J~J---iOOOOQ $0 I ~ ~ ~ ~ ~ ~ I May 2004 June 2003 July 2003 August 2003 ~ PIMCO -Long-term 121 PIMCO -Short-term 1§1 COP Debt Reserves mLAIF •BankAccts l!I Petty Cash September 2003 October 2003 Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund October 31, 2003 Par Value Book Value Market Value Rate Balance October 1, 2003 $34,246,098 $34,246,098 $34,246,098 1.596 Deposits: 10/14/2003 12,100,000 12,100,000 12,100,000 1.596 10/24/2003 2,900,000 2,900,000 2,900,000 1.596 10/27/2003 5,300,000 5,300,000 5,300,000 1.596 Total Deposits 20,300,000 20,300,000 20,300,000 1.596 Quarterly Interest Distribution 54,148 54,148 54,148 1.596 Withdrawals: 10/1/2003 (2,200,000) (2,200,000) (2,200,000) 1.596 10/9/2003 (4,800,000) (4,800,000) (4,800,000) 1.596 10/15/2003 (2,300,000) (2,300,000) (2,300,000) 1.596 10/23/2003 (8,000,000) (8,000,000) (8,000,000) 1.596 10/29/2003 (1,800,000} (1 ,800,000} {1 ,800,000~ 1.596 Total Wlthdrawls {19,100,000) (19 ,100,000) {19,100,000) 1.596 Balance October 31, 2003 $35,500,246 $35,500,246 $35,500,246 1.596 Yield 1.596 1.596 1.596 1.596 1.596 1.596 1.596 1.596 1.596 1.596 1.596 1.596 1.596 PIM C 0 November 10, 2003 Mr. Mike White, CPA Controller Orange County Sanitation District 10844 Ellis A venue Fountain Valley, CA 92708-7018 Dear Mike: The following is a description of events in the bond markets during the month of October in addition to an analysis of the strategies undertaken in the Orange County Sanitation District's Long-Term, Liquid, and COP Proceeds portfolios over the period. Also included is a section on our outlook and preferred strategies to be pursued in your portfolios during the coming months. Bond Market Recap: A series of positive economic reports resulted in a sell off in the U.S. bond market during October, as U.S. Treasuries lost 1.53%. Yields rose in a nearly parallel fashion for maturities longer than two years. Mortgage backed securities performed relatively well, returning -0.35%, beating Treasuries by 23 basis points after adjusting for duration. Within the sector, Ginnie Mac debt returned ----0.26%, outperforming Freddie Mac and Fannie Mae bonds, which returned - 0.34% and -0.38%, respectively. Corporate bonds also outperformed Treasuries as the Lehman Credit Index returned -1.07%, for a duration-adjusted excess return of 48 basis points. Lower quality investment grade names outperformed as BBB-rated bonds led Treasuries by 75 basis points on a duration-adjusted basis. High yield bonds continued to provide excellent returns both on an absolute, and relative basis. On a duration-adjusted basis, the Lehman High Yield Index out distanced Treasuries by 336 basis points, posting an absolute return of 2.02%. The U.S. economy grew at a robust 7.2% annual rate in the third quarter as a result of strong increases in consumer spending, business investment, housing construction and exports. It was the highest growth rate since the first quarter of 1984. Consumer purchases rose at a very strong 6.6% annual rate. This was fueled by personal income tax cuts, which became effective in July, and a record surge in home mortgage refinancing, allowing households more cash to spend. The employment picture also improved, as the number of U.S. workers filing first-time applications for unemployment benefits dropped to an eight-month low. The housing market remained strong as home purchases increased at a record annual pace in September, with sales of existing homes rising 3.6%. Finally, the Conference Board's Index of Consumer Confidence climbed to 81.1 in October from 77 a month earlier, reflecting increases in present conditions and expectations. Mr. Mike White, CPA Orange County Sanitation District November I 0, 2003 Page2 Treasury yield changes during the month of October are summarized as follows: • 3-month bills: + 1 basis point to 0.95% • 6-month bills: +3 basis points to 1.03% • 2-year notes: +36 basis points to 1.82% • 5-year notes: +42 basis points to 3.24% • 10-year notes: +36 basis points to 4.29% • 30-year notes: +25 basis points to 5.13% Performance Attribution: Long-Term Portfolio The Long-Term portfolio that PIMCO manages on behalf of Orange County Sanitation District generated a total return of -0.48 percent for the month of October, outperforming the Merrill Lynch 1-5 year Government Corporate Index by 13 basis points. The following points summarize returns for the period ended October 31 : • The Long-Term portfolio outperformed the benchmark by 13 basis points for the month. • For the twelve-month period, the Long-Term portfolio returned 3 .61 %, lagging the benchmark by 30 basis points. • Portfolio duration, near the index, was neutral for performance. • Broader-than-index yield curve positioning was slightly positive for performance as yields rose most in the 1-5 year sector. • An underweight exposure to Treasuries was positive, as the sector lagged during the month. • Exposure to mortgage-backed securities was positive for relative performance as the sector outperformed Treasuries on a duration-adjusted basis. • Corporate issues were positive for performance as the sector continued to perform strongly relative to other bond market sectors; however, an underweight exposure relative to the benchmark was negative. Liquid Portfolio The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District generated a total return of 0.08 percent during the month of October, performing in line with the 3-month Treasury Bill Index for the month. The following points summarize returns for the period ending October 31: • The Liquid portfolio performed in line with the benchmark for the month. • For the twelve-month period, the Liquid portfolio returned 1.43%, outperforming the benchmark by 26 basis points. • Use of higher yielding securities such as commercial paper and short-term notes Mr. Mike White, CPA Orange County Sanitation District contributed to performance. "2003 COP Proceeds -Future Construction" Portfolio November 10, 2003 Page3 The COP Proceeds portfolio that PIM CO manages on behalf of Orange County Sanitation District generated a total return of 0.08 percent during the month of October, performing in line with the 3-month Treasury Bill Index. The following points summarize returns for the period ending October 31: • The Liquid portfolio performed in line with the benchmark for the month. • Use of higher yielding securities such as commercial paper and short-term notes contributed to performance. Outlook and Strategy: PIMCO is optimistic about the cyclical outlook, forecasting an upturn in the U.S. economy over the next six to 12 months with a positive spillover effect into global demand. This revival will, however, either exacerbate or fail to redress secular imbalances such as the U.S. current account deficit, structural rigidities in Europe and huge public sector debt in Japan. Confronting these problems will constrain growth, making PIMCO pessimistic about the sustainability of the upturn beyond a cyclical time frame. Inflation will be contained by slack in labor markets and industrial capacity as well as productivity growth. Tame inflation will help keep interest rates range-bound over the next year, with 10-year Treasury yields hovering around 4% to 5%. There will be volatility within this range, however, as markets reassess prospects for sustainable growth. Key elements of PIMCO's forecast are: • Disposable personal income will get a boost from federal tax cuts and the lagged impact of the mortgage refinancing boom. • The Federal Reserve will support recovery by keeping the federal funds rate at I percent for at least the next year. • It remains unclear whether corporate risk appetites will revive enough to fuel the rebound in capital spending and hiring that is critical for sustained growth. • Growth prospects are improved in Europe, helped by the U.S. recovery and tax cuts in Germany. Growth will remain below potential, however, held back by rigid product and labor markets. • External demand is sparking a recovery in Japan, especially among globally competitive Japanese corporations, which are paying higher real wages and investing surplus cash in China. A rally in Japanese stocks has bolstered the balance sheets of Japan's troubled banks. • China, struggling to employ workers shifting from agricultural labor and away from state-owned firms, will continue its export-driven economic policy for now. It will help fund the U.S. trade deficit on favorable tenns and resist a currency revaluation. Mr. Mike White, CPA Orange County Sanitation District November 10, 2003 Page4 Caution is warranted given potential volatility around economic releases and full valuations in core bond sectors. Even so, we see ample opportunity to add value. With rates expected to be stable, we will target near-index duration but we will take modest exposure on the short end of the yield curve as markets are pricing in more restrictive central bank policies than we foresee. A short maturity focus will allow PIMCO to reap gains by "rolling down" the steep short/intermediate maturity yield curve. Another way to exploit the steep curve is to buy bonds with longer settlement periods and invest cash backing the unsettled issues in short term debt with relatively high yields. Mortgage-backed bonds are fairly priced now, so we will limit exposure to this sector. We will remain underweight in corporate bonds, which generally offer slim yield premiums for the credit risk we see. Outside these core strategies, however, real return bonds remain compelling as a long term holding given their historically attractive real yields and ability to hedge secular inflation risk. We look forward to discussing these and other topics with you in the near future. Best regards, Christine Telish, CF A Vice President John M. Miller, CFA Senior Vice President Orange County Sanitation District for the month ending October 31, 2003 Total Return Account -203 Market Value Book Value Yield to Maturity Short Term Account -603 Market Value Book Value Yield to Maturity With Accrued Interest 384,072,634 379,079,887 2.84 With Accrued Interest 37,982,827 38,694,150 1.40 2003 COP Proceeds -Future Construction -2203 Market Value Book Value Yield to Maturity With Accrued Interest 117,902,033 117,979,272 1.45 Without Accrued Interest 380,071,954 375,079,208 2.87 Without Accrued Interest 37,480,552 38,191,875 1.42 Without Accrued Interest 117,494,620 117,571,859 1.46 MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 31 October 2003) Liquid Operating Monies (603) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO • Mellon Historical Cost: • PIMCO • Mellon 15.1.2 MODIFIED DURATION Of Portfolio: Of Index: 15.1.3 1%INTERESTRATECHANGE Dollar Impact (gain/loss) of 1 % Change: 15.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: (see attached schedule) 15.1.5 PORTFOLIO MATURITY % of Portfolio Maturing within 90 davs: 15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: 15.1.7 SECURITIES BELOW "A" RATING % of Portfolio Below "A": 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" 15.1.9 PORTFOLIO PERFORMANCE Total Rate of Return (%) by Period: 1 Month: 3 Months: 12 Months: Fiscal Year-to-Date: Commentary • The Liquid portfolio performance equaled the benchmark for the month and outperfo1med the benchmark by 3 basis points fiscal year-to-date. • PIMCO's emphasis on higher yielding securities such as commercial paper and short-tem1 notes contributed to performance. G:\wp.dta\fin\220\white\Treasury Mgmt\LIQ0800-03-10.RPT.doc Page 1 of 1 $37,982,827 $37,982,650 $38,694,150 $38,696,080 0.20 0.20 $75,966 0% 54% ''AAA'' 0% Yes Portfolio Index 0.08 0.08 0.28 0.24 1.43 1.17 0.36 0.33 MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 31 October 2003) Long-Term Operating Monies (203) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO • Mellon Historical Cost: • PIMCO • Mellon 15.1.2 MODIFIED DURATION Of Portfolio: Of Index: 15.1.3 1 % INTEREST RATE CHANGE Dollar Impact (gain/loss) of 1 % Change: 15.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: ( see attached schedule) 15.1.5 PORTFOLIO MATURITY % of Portfolio Maturing within 90 days: 15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: 15.1.7 SECURITIES BELOW "A" RATING % of Portfolio Below "A": 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" 15.1.9 PORTFOLIO PERFORMANCE Total Rate of Return(%) by Period: 1 Month: 3 Months: 12 Months: Fiscal Year-to-Date: • The Long-Tenn portfolio outperformed the benchmark by 13 basis points for tJlle man th, and by 12 basis points fiscal year-to-date. • Portfolio duration, near the index, was neutral for performance. • Broader-than-index yield curve positioning was slightly positive for performamce as yiields rose most in the 1-5 year sector. • An underweight exposure to Treasuries was positive, as the sector lagged during the month. • Exposure to Mortgage-backed securities was positive for relative performance as the sector outperformed Treasuries on a duration-adjusted basis. Page 1 of3 $384,072,634 $384,103,421 $379,079,887 $379,763,807 2.33 2.39 $8,948,892 0% 15% AAA 2% No* Portfolio Index -0.48 -0.61 1.52 1.03 3.61 3.91 -0.15 -0.27 • Corporate issues were positive for perfom1ance as the sector continued to perform strongly relative to other bond market sectors; however, an underweight exposure relative to the benchmark was negative. *Compliance Issues: MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 31October 2003) Page2 of3 $1,600,000 par of United Airlines (UAL) Pass-Through 2001-1-C (Enhanced Equipment Trust Certificate (EETC) -9093l 7BC2). 6.831 % coupon, 9/1/2008 maturity, representing 0.4% of the portfolio holdings on a par basis was purchased on 8/10/2001; and subsequently downgraded by Moody's from A3 to BAI (on 9/18/2001) and S&P from A-to BBB (on 9/20/2001). The security was further downgraded by Moody's from BAI to BA3 (on 12/21/2001) and by S&P from BBB to BB (on 6/28/02). Following news of the possible bankruptcy filing, the security was further downgraded in August (B3 Moody's, B+ by S&P). On November 29, 2002, S&P further downgraded this issue to B, and shortly thereafter on December 9, 2002, downgraded the issue one notch further to B-. On August 7, 2003, S&P downgraded the issue to CCC+, while Moody's followed suit on August 28, 2003 wi•th a downgrade to CA. The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P, with at least a BBB rating in the event of a split. On October 30, UAL reported a third-quarter operating profit of $19 million, an improvement of $665 million over last year. Excluding $71 million in special charges, the company reported an operating profit of $90 million. UAL's third quarter net loss was $367 million which includes $330 million in special charges and reorganization expenses. Excluding those charges, UAL's loss for the third quarter totaled $3 7 million. The special charges include $96 million in non-cash items resulting from the rejection of aircraft. UAL's organization and movement through bankruptcy process has been less efficient than US Airways and Air Canada. The company has yet to articulate a clear and coherent fleet plan, which makes the timing of emergence from Chapter 11 diJJficult to predict. PIM CO does not expect to see a completed reorganization until mid-2004 at the earliest. PIMCO continues to negotiate with UAL on the District's holdings and currently lead an ad hoc committee. This has been an extremely complicated effort due to the complex nature ofUAL's bankruptcy. These negotiations have required PIMCO's analysts access to non-public information and they are now at a point in these workout negotiations where restructuring options are being discussed. Details on the options are non-public information and therefore sharing them results in parties becoming restricted. In light of this extremely complicated bankruptcy, PIMCO continues to strive to act in the most prudent manner to obtain maximum recovery. 5,000,000 par of Philip Morris-Altria NT (cusip 718154CH8), 4/1/2004 maturity, representing 1.3% of the portfolio holdings on a par basis was purchased on 8/6/2001 at a price of 105.26. This security was subsequently downgraded by Moody's fromA2 to Baal on 4/01/2003, and then from Baal to Baa2 on 4/23/03. The security was downgraded by S&P from A-to BBB on 4/10/2003. The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P, with at least a BBB rating in the event of a split. The Philip Morris USA downgrade activity was a result of a negative court judgment and its associated bonding requirement. In the Miles case, named after the initial plaintiff in the class-action lawsuit, an Illinois court fined Philip Morris $10.3 billion for allegedly deceiving smokers into thinking that "light" cigarettes were safer than regular cigarettes. The company, now a subsidiary of Altria, has said that the lawsuit was flawed and that it planned to appeal the ruling and the class certification order that preceded it. Prior to the judgment, PIM CO' s analysis of Altria ( the holding company and issuer of the debt) shows investment grade credit metrics even excluding in its entirety Philip Morris USA (the domestic tobacco subsidiary and the entity subject to all of the legal suits). The analysis was based on the assumption that the horizon of any final verdict would be years in the future, while the company would generated significant cash flow in the interim. On October 16, Philip Morris' parent, Altria Group, reported third quarter profits that were 43 percent lower than second quarter profits. Philip Morris USA and other major U.S. cigarette makers have been spending more on promotions to lesson the blow of higher state excise taxes, cheaper cigarettes, Internet sales and other factors. Philip Morris' cigarette shipment volume fell I percent to 48.9 billion cigarettes. Retail shai:e grew to 48.8 percent from 48.5 percent in the second quarter, with focus brands Marlboro and Parliament both posting gains. MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 31 October 2003) Page 3 of3 PIMCO believes management is unlikely to sacrifice good subsidiaries to fund the bad one, which would create a bad precedent for future court cases. PIMCO has continued to hold their positions at the holding company (Altria) level, but have suspended any additional purchases until greater clarity emerges on the likelihood of various outcomes. Split Rated Securities Still In Compliance: The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P, with at )east a BBB in the event of a split rating. • $4,000,000 par of Ford Motor Credit securities ($3 million represented by cusip 345397S13 maturing 7/16/04 and $1 million represented by cusip 345397GV9 maturing 5/15/05), representing 1.0% of the portfolio holdings on a par basis. The securities were downgraded on 10/16/2001 by S&P from A to BBB+; and now carry a Moody's rating of A3 after a further downgrade from A2 on 1/16/2002 and an S&P rating of BBB after a further downgrade from BBB+ on 10/25/2002. • $3,000,000 par of General Motors Acceptance Corp securities (cusip 370425SD3) maturing on August 28, 2007, representing 0.8% of the portfolio holdings on a par basis. The securities were downgraded on 10/16/2001 by S&P from A to BBB+, and a further downgrade to BBB occurring on 10/16/2002. The securities now carry a Moody's rating of A3 after a further downgrade fromA2 on 6/14/03. • $3,500,000 par of Virginia Electric Power NT securities (cusip 927804EN0), maturing in 2006, represents 0.9% of the portfolio holdings on a par basis. The security was downgraded on 10/21/2002 by S&P from A-to BBB+, but continue·s to carry a Moody's rating of A3. G:lwp.dt.alflnlZZ0lwhitelTreasury MgmfoL-T0B00-03-10.RPr.doc LIQUID OPER-PIMCO -OCSF07511102 Description CASH &: CASH EQUIVALENTS U.S. DOLLAR INTEREST FED HM LOAN BNK -LESS THAN lYR FEDERAL HOME LOAN MORTGAGE -LESS THAN 1 FNMA ISSUES -LESS THAN 1 YR MUTUAL FUNDS TREASURY BILLS -LESS THAN 1 YR U.S. DOLLAR CASH & CASH EQUIVALENTS FIXED INCOME SECURITIES U.S. DOLLAR BANKING & FINANCE INDUSTRIAL U.S. AGENCIES U.S. GOVERNMENTS UTILITY -TELEPHONE U.S. DOLLAR FIXED INCOME SECURITIES TOTAL ASSETS -BASE: Asset Summary by Asset Type with Sectors Report ID: GL8251 Base Currency: USD Alternate Base Currency: Exchange Rate: 10/31/2003 Status: FINAL Cost Shares Par Base 504,205.28 7,600,000.000 7,580,660.64 6,200,000.000 6,171,369.67 3,300,000.000 3,288,893.54 203,318.870 203,318.87 1,200,000.000 1,194,191.67 18,503,318.870 18,942,639.67 18,503,318.870 18,942,639.67 5,450,000.000 5,639,565.00 300,000.000 308,808.00 6,650,000.000 6,876,036.50 5,800,000.000 6,251,984.38 650,000.000 677,046.50 18,850,000.000 19,753,440.38 18,850,000.000 19,753,440.38 37,353,318.870 38,696,080.05 1 Market Value Base 504,205.28 7,580,660.64 6,171.369.67 3,288,893.54 203,318.87 1,194,191.67 18,942,639.67 18,942,639.67 5,535,915.00 300,888.00 6,725,251.83 5,820,851.00 657,104.50 19,040,010.33 19,040,010.33 37,982,650.00 %of Total 1.33% 19.96% 16.25% 8.660/4 0.54% 3.14% 49.87% 49.87% 14.570/4 0.79% 17.71% 15.33% 1.73% 50.13% 50.13% 100.00% Net Unrealized Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 o.oo 0.00 -103,650.00 -7,920.00 -150,784.67 -431,133.38 -19,942.00 -713,430.05 -713,430.m; -713,430.05 Workbench LONG TERM OPER-PIMCO -OCSF07522202 Description CASH & CASH EQUIVALENTS U.S. DOLLAR CASH PENDING TRADES INTEREST COMMERCIAL PAPER -DISCOUNT FED HM LOAN BNK -LESS THAN 1 YR FEDERAL HOME LOAN MORTGAGE -LESS THAN l FNMA ISSUES-LESS THAN lYR MUTUAL FUNDS TREASURY BILLS -LESS THAN 1 YR U.S. DOLLAR CASH & CASH EQUIVALENTS FIXED INCOME SECURITIES U.S. DOLLAR ABS -AIRPLANE RECEIVABLES BANKING & FINANCE COLLATERALIZED MORTGAGE OBLIGATION FHLMC MULTICLASS FHLMCPOOLS FNMA POOLS GNMA MULTI FAMILY POOLS GNMA SINGLE FAMILY POOLS INDUSTRIAL INFLATION INDEXED SECURITIES PVT PLACEMENTS -MORE THN 1 YR U.S. AGENCIES U.S. GOVERNMENTS UTILITY -ELECTRIC UTILITY -TELEPHONE U.S. DOLLAR Asset Summary by Asset Type with Sectors 10/31/2003 Cost Shares Par Base -53,833.50 -24,736,414.37 4,022,086.89 3,400,000.000 3,388,394.44 2,000,000.000 1,988,663.33 36,400,000.000 36,297,788.72 20,700,000.000 20,628,901.28 188,275.980 188,275.98 33,500,000.000 33,329,128.77 96,188,275.980 75,052,991.54 96,188,275.980 75,052,991.54 1,600,000.000 1,600,000.00 32,335,000.000 33,468,411.00 2,504,229.760 2,504,229.76 1,162,823.290 1,164,062.14 179,228.770 179,630.74 46,583,059.090 47,735,600.73 3,552,620.150 3,534,701.39 10,617,259.480 10,797,852.59 12,000,000.000 12,458,780.00 34,368,640.000 34,385,651.71 752,000.000 826,199.84 41,175,877.080 42,252,599.14 92,597,276.280 100,770,646.50 6,500,000.000 6,438,210.00 6,000,000.000 6,594,240.00 291,928,013.900 304,710,815.54 1 Report ID: GL825 l Base Currency: USD Alternate Base Currency: Exchange Rate: Status: FINAL Market Value Base -53,833.50 -24,736,414.37 4,022,086.89 3,388,394.44 1,988,663.33 36,297,788.72 20,628,901.28 188,275.98 33,329,128.77 75,052,991.54 75,052,991.54 132,032.00 34,053,668.35 2,673,140.06 1,169,776.97 184,742.43 47,648,091.57 3,597,865.65 11,097,606.27 12,319,800.00 38,207,429.16 826,199.84 44,064,049.38 99,696,627.65 6,910,680.00 6,468,720.00 309,050,429.33 % of Total -0.01% -6.44% 1.05% 0.88% 0 .52% 9.45% 5 .37% 0.05% 8 .68% 19.54% 19.54% 0.03% 8.87% 0 .70% 0 .30% 0.05% 12.41% 0.94% 2.89% 3.21% 9 .95% 0.22% 11.47% 25.96% 1.80% 1.68% 80.46% Net Unrealized Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,467,968.00 585,257.35 168,910.30 5,714.83 5,111.69 -87,509.16 63,164.26 299,753.68 -138,980.00 3,821,777.45 0.00 1,811,450.24 -1,074,018.85 472,470.00 -125,520.00 4,339,613.79 Workbenc}l Asset Summary by Asset Type with Sectors LONG TERM OPER-P.lMCO -OCSF07522202 10/31/2003 Cost Description Shares Par Base FIXED INCOME SECURITIES 291,928,013.900 304,710,815.54 TOTAL ASSETS -BASE: 388,116,289.880 379,763,807.08 2 Report ID: GL8251 Base Currency: USD Alternate Base Currency: Exchange Rate: Status: FINAL Net Unrealized Market Value % of Gain/Loss Base Total Base 309,050,429.33 80.46% 4,339,613.79 384,103,420.87 100.00% 4,339,613.79 Workbench YLDANAL OCSF07511102 DISTRICT: LIQUID OPERATING YIELD ANALYSIS 2003/10/31 PAGE RUN DATE RUN TIME 1 I 11/06/03 : 11.55.02 ========~======---=================--==-==========-============================ PAR VALUE SECURITY ID SECURITY DESCRIPTION ------------ CASH & CASH EQUIVALENTS 3,100,000.00 FEDERAL HOME LN BKS CONS DISC 313384PL7 MAT 11/19/2003 1,600,000,00 FEDERAL HOME LN BK CONS DISC N 313384PTO MAT 11/26/2003 1,400,000.00 FEDERAL HOME LN BK CONS DISC 313384SS9 600,000.00 FEDERAL HOME LN BK CONS DISC 313384SWO HAT 02/09/2004 9001000,00 FEDERAL HOME LN BKS CINS DISC 313384UK3 HAT 03/17/2004 21400,000,00 FEDERAL HOME LN MTG CORP DISC 313396PT4 MAT 11/26/2003 3,eoo,ooo.oo FEDERAL HOME LN MTG CORP DISC 313396UZ4 HAT 03/31/2004 l,000,000,00 FEDERAL NATL MTG ASSN DISC 313588PD1 MAT 11/12/2003 2,300 1 000,00 FEDERAL NATL MTG ASSN DISCOUNT 313588PL3 HAT 11/19/2003 1,200,000,00 US TREASURY BILL 912795PK1 DUE 02/12/2004 DD 08/14/2003 203,318.87 DREYFUS TREASURY CASH MGMT 996085247 TOTAL CASH & CASH EQUIVALENTS FIXED INCOME SECURITIES l,000,000,00 ASSOCIATES CORP NORTH AMER 046003KA6 5,800% 04/20/2004 DD 04/20/99 YT'H AT BOOK .ooo .ooo .ooo .000 .ooo .000 .ooo ,000 ,000 .ooo .ooo .ooo .ooo CURRENT MOODY YIELD S-P ,000 .000 .000 ,000 .ooo .ooo .ooo .ooo ,000 .ooo .804 ,001 5,681 P-1 A-1+ P-1 A-1+ P-1 A-1+ P-1 A-1+ P-1 A-1+ P-1 A-1+ P-1 A-1+ P-1 A-1+ P-1 A-1+ P-1 A-1+ AAA AAA AAl AA- MARKET PRICE 99,788 99.921 99.688 99,614 99.462 99.721 99.422 99,468 99. 749 99.516 100.000 102,093 TOTAL COST/ MARKET VALUE 3,093,442.53 3,093,442.53 1,598,743.11 1,598,743.11 1,395,630.83 1,395,630.83 597,681.67 597,681.67 895,162.50 895,162.50 2,393,314.67 2,393,314.67 3,778,055.00 3,778,055.00 994,677.08 994,677.08 2,294,216.46 2,294,216.46 1,194,191.67 1,194,191.67 203,318.87 203,318.87 18,438,434.39 1B,4381 434,39 1,041,290.00 1,020,930.00 I TYPE % TOTAL 16. 77 8.25 B.67 4.27 7.56 3,72 3,24 1.59 4,85 2.39 12,98 6.39 20.49 10.08 5.39 2,65 12.44 6 .12 6.47 3.19 1.10 .54 100.00 49,19 5.36 2.72 YLDANAL YIELD ANALYSIS PAGE 2 OCSF07511102 2003/10/31 RUN DATE 11/06/03 DISTRICT: LIQUID OPERATING RUN TIME 11.55.02 ---- PAR VALUE YTIM AT CURRENT MOODY MARI<ET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARI<ET VALUE % TOTAL ----------------------------------------------------------------------------------------------- 500,000.00 BANK OF AMERICA CORP SR GBL NT .ooo 6.416 AA2 103.250 518,385.00 2. 71 066050CW3 6.625% 06/15/2004 DD 06/15/99 A+ 516,250.00 1.38 650,000.00 BELL ATLANTIC-NEW JERSEY INC .000 5.811 AA3 101.093 677,046.50 3.45 077858AA6 5.875% 02/01/2004 DD 02/01/94 A+ 657,104.50 1.75 300,000.00 COLGATE PALMOLIVE MTN TR 00058 .000 5.254 AA3 100.296 308,808.00 1.58 19416QCK4 5,270% 12/01/2003 DD 11/24/98 AA-300,888.00 .80 1,350,000.00 FEDERAL FARM CR BKS CONS SYSTE .ooo 5.347 AAA 100,999 1,399,963.50 7 .16 31331H6G7 6.401 01/23/2004 DD 01/01/1999 AAA 1,363,485.83 3.64 1,100,000.00 FEDERAL HOME LN MTG CORP DEB .ooo 3.705 AAA 101.208 1,125,905.00 5 .84 3134A4PH1 3.750% 04/15/2004 DD 04/15/02 AAA 1,113,286.24 2.97 4,200,000.00 FEDERAL NATL MTG ASSN DEBS .ooo 5.067 AAA 101,154 4,350,168.00 22.31 31359MEM1 5.125% 02/13/2004 DD 02/08/99 AAA 4,248,479.76 11.34 1,000,000.00 GENERAL ELEC CAP MTN tTR 00545 .000 1.239 AAA 100,093 1,001,009.00 5.25 36962GYS7 VAR RT 05/20/2004 DD 05/20/02 AAA 1,000,930.00 2.67 1,000,000.00 LEHMAN BROS HLDGS INC .ooo 6,483 Al 102.187 1,045,590.00 5.36 524908BZ2 6.625% 04/01/2004 DD 03/26/99 A 1,021,870.00 2.73 500,ooo.oo PAINE WEBBER GROUP INC NTS .ooo 6.426 AA2 100.375 519,405.00 2.63 695629CE3 6.450% 12/01/2003 DD 12/01/98 AA+ 501,875.00 1.34 1,000,000.00 US BANCORP MTN tTR 00119 .ooo 5.859 AAJ 102.406 1,046,310.00 5.37 91159HEY2 6.000% 05/15/2004 DD 05/10/99 A+ 1,024,060.00 2,73 5,800,ooo.oo US TREASURY BONDS .ooo 11.832 AAA 100.359 6,251,984.38 30.57 912810DGO 11.875% 11/15/2003 DD 10/05/83 AAA 5,820,851.00 15.53 YLDANAL OCSF07511102 DISTRICT: LIQUID OPERATING PAR VALUE SECURITY ID SECURITY DESCRIPTION 450,000.00 WELLS FARGO & CO SUBNT 949740BY9 6.1251 11/01/2003 DD 11/01/93 TOTAL FIXED INCOME SECURITIES TOTAL YTtl AT BOOK 1.615 .007 .003 YIELD ANALYSIS 2003/10/31 CURRENT MOODY MARXET YIELD S-P PRICE 6.125 AA2 100.000 A+ 5.824 2,767 PAGE RUN DATE RUN TIME TOTAL COST/ MARXET VALUE 467,496.00 450,000.00 19,753,440.38 19,040,010,33 38,191,874.77 37,478,444.72 3 11/06/03 11.ss.02 I TYPE I TOTAL 2.36 1.20 100.00 SO.BO 100.00 100.00 YLDANAL YIELD ANALYSIS PAGE 4 OCSF07522202 2003/10/31 RUN DATE 11/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME 11.55.02 =-=-·======================·===-=========-== ---- PAR VALUE Y'.n'M AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL -------------------------------------------------------------------------------------------- CASH & CASH EQUIVALENTS 2,000,000.00 FEDERAL HOME LN BK CONS DISC N .ooo .ooo P-1 99.433 1,988,663.33 2.07 313384NY1 MAT 11/07/2003 A-1+ 1,988,663.33 .49 9,700,000.00 FEDERAL HOME LN MTG CORP DISC .ooo .ooo P-1 99.721 9,672,980.11 10.09 313396PT4 MAT 11/26/2003 A-1+ 9,672,980.11 2 .39 20,000,000.00 FEDERAL HOME LN MTG CORP DISC .ooo .000 P-1 99.731 20,744,004.66 21.64 3l3396RV7 MAT 01/15/2004 A-1+ 20,744,004.66 5.12 1,200,000.00 FEDERAL HOME LN MTG CORP DISC .ooo .ooo P-1 99.727 1,196,718.67 1. 24 313396SKO MAT 01/29/2004 A-1+ 1,196,718.67 ,30 4,700,000.00 FEDERAL HOME LN MTG CORP DISC .ooo .ooo P-1 99.661 4,684,085.28 4 .88 313396SP9 MAT 02/02/2004 A-1+ 4,684,085.28 1.16 11,300,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .ooo P-1 99.733 11,269,873.65 11.76 313588PL3 MAT 11/19/2003 A-1+ 11,269,873.65 2 .78 200,000.00 FEDERAL NATL MTG ASSN DISC .000 .000 P-1 99.637 199,274 .oo .20 313588QA6 A-1+ 199,274.00 .05 900,ooo.oo FEDERAL NATL MTG ASSN DISCOUNT ,000 .ooo P-1 99.663 797,301.63 .83 313588QN8 MAT 12/15/2003 A-1+ 797,301.63 .20 200,000.00 FEDERAL NATL MTG ASSN DISC NT .ooo .ooo P-1 99.553 199,106.00 .20 3135BBTF2 A-1+ 199,106.00 .05 e,200,000.00 FEDERAL NATL MTG ASSN DISCOUNT .ooo .000 P-1 99.553 8,163,346.00 8 .51 3135BBTGO MAT 02/19/2004 A-1+ 8,163,346.00 2 .02 600,000.00 GENERAL ELEC CAP DISC .000 .000 P-1 99.662 597,974,33 .62 36959JYC1 11/12/2003 597,974.33 ,15 2,000,000.00 GENERAL ELEC CAP DISC .ooo .000 P-1 99.658 2,790,420.11 2.91 36959JZA4 12/10/2003 2,790,420.11 .69 4,500,000.00 US TREASURY BILL .ooo .ooo P-1 99.516 4,478,218.75 4.67 912795PK1 DUE 02/12/2004 DD 08/14/2003 A-1+ 4,478,218.75 1.11 11,000,000.00 UNITED STATES TREASURY BILL .000 .000 P-1 99.487 16,912,790.02 17,65 912795PV7 DUE 04/22/2004 DD 10/23/03 A-1+ 16,912,790.02 4,18 YLDANAL YIELD ANALYSIS PAGE 5 OCSF07522202 2003/10/31 RUN DATE 11/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME : 11,55.02 --------~------------==--=-·--=:--.-=:::.===~======--========== PAR VALUE YT'H AT CURRENT MOODY MARXET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL -------------------------------------------------------------------------------------------------- 12,000,000.00 US TREASURY BILL .ooo .ooo P-1 99,484 11,938,120,00 12.45 912795PW5 0,000% 04/29/2004 DD 10/30/03 A-1+ 11,938,120,00 2.95 188,275.98 DREYFUS TREASURY CASH MGMT .ooo ,804 AAA 100.000 188,275.98 ,19 996085247 AAA 188,275,98 ,05 -----------------------------------------TOTAL CASH & CASH EQUIVALENTS .ooo .000 95,821,152.52 100.00 95,821,152.52 23.69 FIXED INCOME SECURITIES 752,000.00 AIG SUNAMERICA GLOBAL REGS .000 5.325 109.867 826,199, 84 ,26 U00907AAO 5.8501 08/01/2008 DD 08/08/01 826,199.84 .20 23,000,000.00 COMMIT TO PUR FNMA SF MTG .ooo 4,923 AAA 101.562 23,287,500,00 7.55 OlF0504B9 5.000% 11/01/2018 DD 11/01/02 AAA 23,359,260.00 5,77 1,soo,000.00 COMMIT TO PUR FNMA SF MTG .ooo 5.845 AAA 102.656 1,536,015.63 ,49 OlF0606B6 6.0001 11/01/2033 DD 11/01/03 AAA 1,539,840.00 .38 900,000.00 BEAR STEARNS MTN f TR 00459 .ooo 1.420 Al 100.031 899,406.00 ,29 073928VC4 VAR RT 12/01/2003 DD 08/17/01 A 900,279.00 ,22 1,500,000.00 CIT GROUP INC NEW SR NT .000 5.144 A2 106.921 1,527,135.00 .51 125581AD0 5.500% 11/30/2007 DD 12/02/02 A 1,603,815,00 .40 5,000,000.oo CITIGROUP INC GLOBAL SUB NT .ooo 5.332 AA2 105.500 5,333,600,00 1.70 172967BP5 5.6251 08/27/2012 DD 08/26/02 A+ 5,215,000.00 1.30 96,013.44 FHLMC GROUP tG4-0353 .ooo 7.327 AAA 102.361 98,443.79 .03 3128DBMA2 7.5001 10/01/2004 DD 03/01/99 AAA 98,280.79 ,02 1,500,000.00 FEDERAL HOME LN BK CONS BOS .ooo 6.654 AAA 107.082 7,997,625.00 2.59 3133MAUN7 7,1251 02/15/2005 DD 02/08/00 AAA 8,031,152.25 1.98 83,215.33 FHLMC GROUP t78-6064 .000 3.701 AAA 103.901 81,186.95 .02 31348SWZ3 6.384% 01/01/2028 DD 12/01/97 AAA 86,461.64 .02 11,350,000.00 FEDERAL NATL MTG ASSN DEBS .ooo 4,907 AAA 106.992 11,521,271.50 3.92 31359HJX2 5.250% 06/15/2006 DD 06/22/01 AAA 12,143,592.00 3.00 YLDANAL YIELD ANALYSIS PAGE 6 OCSF07522202 2003/10/31 RUN DATE 11/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME 11.55.02 ---------·---------= -- PAR VALUE YT'H AT CURRENT MOODY MARI<ET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARI<ET VALUE I TOTAL --------------------------------------------~--------·----------------------------------- 877,249.28 FNMA POOL 10254510 ,000 4.917 AAA 101.695 903,566.76 .28 31371KVB4 5.0001 11/01/2017 DD 10/01/02 AAA 892,121.37 ,22 184,179,44 FNMA POOL 10254631 .000 4,917 AAA 101.695 189,704,83 .06 31371KY47 5.0001 02/01/2018 DD 01/01/03 AAA 187,301.85 .05 165,384.48 FNMA POOL 10254760 ,000 4.917 AAA 101.695 170,346.01 .05 31371K5V9 5,0001 06/01/2018 DD 05/01/03 AAA 168,188.26 .04 71,353.35 FNMA POOL 10254866 .ooo 4,917 AAA 101,695 73,493.96 ,02 31371LCB3 5.0001 09/01/2018 DD 08/01/03 AAA 72,563.01 ,02 230,469.73 FNMA POOL 10323980 .ooo 5. 747 AAA 104,406 240,624.81 .07 31374T2MO 6.0001 04/01/2014 DD 09/01/99 AAA 240,624.80 .06 34,122.73 FNMA POOL 10357328 .ooo 4.916 AAA 101,709 35,146.41 .01 31376J4M8 5,0001 01/01/2018 DD 01/01/03 AAA 34,706.02 .01 79,686.33 FNMA POOL 10456482 .000 5 . 743 AAA 104.469 83,197.50 .02 31381CCT2 6.0001 02/01/2014 DD 02/01/99 AAA 83,247.31 .02 240,196.50 FNMA POOL 10509649 .ooo 5.743 AAA 104.469 250,780.16 .00 31383QEWO 6,0001 09/01/2014 DD 09/01/99 AAA 250,930.28 .06 182,730.54 FNMA POOL 10535451 ,000 5,747 AAA 104.406 190,782 , 10 .06 31384VZQ8 6.0001 06/01/2015 DD 07/01/00 AAA 190,782.10 .05 3,985,968.69 FNMA POOL #0535672 .ooo 5. 747 AAA 104,406 4,161,600.44 1.34 31384WCH1 6.0001 01/01/2016 DD 12/01/00 AAA 4,161,600.44 1.03 1,333,360.04 FNMA POOL 10545296 .ooo 5,757 AAA 104.219 1,392,111.21 .44 31385HXZO 6.0001 11/01/2016 DD 10/01/01 AAA 1,389,611.17 ,34 110,642.71 FNMA POOL 10545580 .ooo 5.754 AAA 104.281 115,517.90 .03 31385JCR7 6,0001 03/01/2017 DD 03/01/02 AAA 115,379,60 .03 216,022.63 FNMA POOL 10545998 .000 5.847 AAA 102.615 224,663.53 .07 31385JRT7 6.0001 11/01/2032 DD 10/01/02 AAA 221,672.65 .05 193,122.56 FNMA POOL 10555101 .ooo 5.749 AAA 104.369 201,632.01 .06 31385WU23 6.0001 10/01/2017 DD 11/01/02 AAA 201,559.60 .05 865,703.54 FNMA POOL 10555285 .ooo 5.837 AAA 102.793 900,331.69 .28 31385W2S7 6.000% 03/01/2033 DD 02/01/03 AAA 889,882.38 ,22 YLDANAL YIELD ANALYSIS PAGE : 7 OCSF07522202 2003/10/31 RUN DATE : 11/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME I 11,55,02 --------------------------------------------------------------------========----====~=========--------====----==---------==== PAR VALUE YT'M AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL -·---------------------··---------------------------------------------------------------------------- 396,474.02 FNMA POOL 10555363 .ooo 4.917 AAA 101,695 408,368.24 ,13 31385W5Yl 5.0001 04/01/2018 DD 03/01/03 AAA 403,195,48 .10 844,289.08 FNMA POOL 10555528 .ooo 5.837 AAA 102,793 878,060.65 .28 31385XD95 6.0001 04/01/2033 DD 05/01/03 AAA 867,969.82 .21 331,080.61 FNMA POOL 10555545 .ooo 4.917 AAA 101,695 341,013.03 .10 31395XES2 5,0001 06/01/2018 DD 05/01/03 AAA 336,693.45 .08 850,142.19 FNMA POOL 10555640 .ooo 5.837 AAA 102,793 884,147.87 ,28 31385XHR1 6,0001 07/01/2033 DD 06/01/03 AAA 873,886,40 ,22 68,766.25 FNMA POOL 10576386 .ooo 5.773 AAA 103,939 71,796.26 .02 31386XJ72 6,0001 05/01/2016 DD 05/01/01 AAA 71,474.97 .02 192,504.74 FNMA POOL 10576739 .ooo 5.754 AAA 104,281 200,986.98 .06 31386XV86 6,0001 04/01/2016 DD 04/01/01 AAA 200,746.35 .05 251,623.73 FNMA POOL 10590889 .ooo 5.754 AAA 104,291 262,710.99 .08 31387DJ91 6.0001 05/01/2016 DD 05/01/01 AAA 262,396.37 .06 194,141.98 FNMA POOL 10594002 .ooo 5.757 AAA 104.219 202,696.36 .06 31387T3K8 6.0001 07/01/2016 DD 07/01/01 AAA 202,332.34 .05 266,887.47 FNMA POOL 10597376 .ooo 5.757 AAA 104,219 278,647.20 .09 31387XT96 6,0001 09/01/2016 DD 08/01/01 AAA 278,146.79 .07 201,279.10 FNMA POOL 10605259 .ooo 5,754 AAA 104,281 210,147.96 .06 31388HMG1 6,0001 09/01/2016 DD 09/01/01 AAA 209,896.36 .05 113,031.18 FNMA POOL 10608366 .ooo 5.754 AAA 104,281 118,011.61 .03 31388LZ78 6,0001 10/01/2016 DD 09/01/01 AAA 117,870.33 .OJ 171,985.66 FNMA POOL 10616734 ,000 5.754 AAA 104,281 179,563.77 .05 31388WEF9 6.0001 12/01/2016 DD 12/01/01 AAA 179,348.80 .04 215,163.97 FNMA POOL 10630812 .ooo 5,770 AAA 103,995 224,644.63 ,07 31389NYH2 6,0001 02/01/2017 DD 02/01/02 AAA 223,758.84 .06 914,151.81 FNMA POOL 10632376 .ooo 5.749 AAA 104.369 954,431.64 .30 31389QQ50 6,0001 07/01/2017 DD 07/01/02 AAA 954,088.82 ,24 519,924.33 FNMA POOL 10653116 ,000 5. 749 AAA 104.369 542,833.50 ,17 31390QSD9 6,0001 07/01/2017 DD 07/01/02 AAA 542,638.52 .13 YLDANAL YIELD ANALYSIS PAGE : 8 OCSF07522202 2003/10/31 RUN DATE : 11/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME I 11.55.02 ------- PAR VALUE YT'M AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL --------------------------·--------------------------------· ----------------.--------------------- 216,161.12 FNMA POOL 10673280 .ooo 5,757 AAA 104,219 225,685.71 .07 31391P6R2 6,0001 08/01/2017 DD 11/01/02 AAA 225,280.42 .06 595,226.37 FNMA POOL f0681309 .000 4.917 AAA 101,695 613,083.16 .19 31391Y3S4 5,0001 02/01/2018 DD 02/01/03 AAA 605,317.30 ,15 75,098.46 FNMA POOL 10681334 ,000 4,917 AAA 101,695 77,351.41 ,02 31391Y4Tl 5,0001 02/01/2018 DD 01/01/03 AAA 76,371.61 .02 37,920.87 FNMA POOL 10685665 .ooo 4,917 AAA 101.695 39,058.50 .01 31400EW22 5.0001 02/01/2018 DD 02/01/03 AAA 38,563.75 ,01 327,881,10 FNMA POOL 10686318 .ooo 4,917 AAA 101.695 337,717.53 .10 31400FPB7 5,0001 03/01/2018 DD 03/01/03 AAA 333,439.70 .08 126,614.00 FNMA POOL 10688739 .ooo 4.917 AAA 101.695 130,412.41 .04 31400JEL9 5,0001 06/01/2018 DD 06/01/03 AAA 128,760.50 ,03 769,146.50 FNMA POOL 10693834 .ooo 4,917 AAA 101,695 792,220.89 .25 31400PY74 5,0001 03/01/2018 DD 03/01/03 AAA 782,185.92 .19 285,868.57 FNMA POOL 10695852 ,000 4,917 AAA 101.695 294,444.62 .09 31400SBVO 5,0001 05/01/2018 DD 05/01/03 AAA 290,714.93 ,07 863,905,19 FNMA POOL 10695889 .ooo 4,917 AAA 101.695 889,822.34 ,28 31400SC23 5,0001 05/01/2018 DD 05/01/03 AAA 878,551.06 ,22 28,264.68 FNMA POOL 10697026 .ooo 4,917 AAA 101.695 29,112.63 .oo 31400TLF2 5,0001 05/01/2018 DD 04/01/03 AAA 28,743.85 .01 102,429.91 FNMA POOL 10698939 .ooo 5. 747 AAA 104.394 106,943.23 ,03 31400VPY2 6,0001 09/01/2017 DD 03/01/03 AAA 106,930.42 .03 288,142.51 FNMA POOL 10702210 .000 4,917 AAA 101.696 296,786,79 ,09 31401ADP9 5,0001 05/01/2018 DD 05/01/03 AAA 293,030.34 ,07 84,051.11 FNMA POOL 10703195 .ooo 5,733 AAA 104.656 87,754.62 ,02 31401BGC3 6,0001 01/01/2017 DD 04/01/03 AAA 87,964.74 .02 307,604.06 FNMA POOL 10709148 .ooo 4.917 AAA 101.695 316,832.18 .10 31401HZM7 5.0001 06/01/2018 DD 06/01/03 AAA 312,818.90 ,08 826,276.38 FNMA POOL 10710235 .ooo 4,917 AAA 101.695 851,064.68 ,27 31401KBC8 5,000% 06/01/2018 DD 06/01/03 AAA 840,284.33 .21 YLDANAL YIELD ANALYSIS PAGE 9 OCSF07522202 2003/10/31 RUH DATE : 11/06/03 DISTRICT: LONG-TERM OPERATING RUH TIME : 11.55.02 --------====--=----------==============--============================ PAR VALUE YT'K AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL ------------------------------------------------· ------------------------------------------------ 26,618.45 FNMA POOL f0713344 .ooo 4.917 AAA 101.695 27,417.00 .oo 3l401NP52 5.0001 06/01/2018 DD 06/01/03 AAA 27,069.72 .01 2,498,804 .49 FNMA POOL 10720369 .ooo 4.917 AAA 101.696 2,573,768.62 .82 31401WJNO 5,0001 06/01/2018 DD 06/01/03 AAA 2,541,192.34 .63 321,406,66 FNMA POOL 10721629 .ooo 4 .911 AAA 101.820 331,048.87 .10 31401XVW4 5,0001 07/01/2018 DD 06/01/03 AAA 327,257.26 .08 385,246.67 GNMA POOL 10596612 .000 6.196 AAA 104.910 404,328.42 ,13 36200BYH4 6.5001 09/15/2032 DD 09/01/02 AAA 404,162.90 .10 1,371,750.18 GNKA POOL t0569358 .ooo 6.215 AAA 104.581 1,403,900.57 .46 36200QQK3 6.5001 04/15/2032 DD 04/01/02 AAA 1,434,588.20 .35 60,043.02 GHKA POOL 10569685 .ooo 6.194 AAA 104.941 63,017.02 .02 36200Q2S2 6.5001 02/15/2032 DD 02/01/02 AAA 63,009.99 .02 !1!1,323.62 GNMA POOL 10570019 .ooo 6.196 AAA 104.910 104,243.25 .03 36200RG48 6,5001 07/15/2032 DD 07/01/02 AAA 104,200.57 .03 636,536.19 GHMA POOL 10574323 .ooo 6.194 AAA 104,941 668,064.62 ,21 36200WAY7 6.5001 12/15/2031 DD 12/01/01 AAA 667,990.05 .16 64,838.54 GNMA POOL 10575364 .ooo 6 .194 AAA 104.941 68,050.07 .02 36200XFD6 6.5001 11/15/2031 DD 11/01/01 AAA 68,042.48 .02 24,43!1.35 GHMA POOL 10587117 .000 6.196 AAA 104.910 25,649.86 .oo 36201KG22 6.5001 06/15/2032 DD 06/01/02 AAA 25,639.36 .01 75,524.47 GNMA POOL 10587439 .ooo 6.196 AAA 104.910 79,265.29 .02 36201HS45 6.5001 11/15/2032 DD 12/01/02 AAA 79,232.84 .02 16,567.02 GNMA POOL 10421389 .000 6.177 AAA 105,223 17,387.61 .oo 36206UC23 6.5001 04/15/2026 DD 04/01/96 AAA 17,432.26 ,00 25,055.71 GNMA POOL 10449851 ,000 6.212 AAA 104.630 26,296.75 .oo 36208FWLO 6,5001 01/15/2028 DD 01/01/98 AAA 26,215,74 .01 74,906.26 GNMA POOL 10466845 .ooo 6,181 AAA 105,160 78,616.46 ,02 36209BTA6 6,5001 06/15/2028 DD 06/01/98 AAA 78,771.54 ,02 262,533.11 GNMA POOL 10468052 .ooo 6.181 AAA 105.160 275,536.70 .08 36209C5M4 6.5001 07/15/2028 DD 07/01/98 AAA 276,080.24 .07 YLDANAL YIELD ANALYSIS PAGE 10 OCSF07522202 2003/10/31 RUN DATE I 11/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME : 11.55.02 --. ---------~ ---------:-· .... ~---.~~----~=======---= PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL --------------------------------------------------------------------------------------------- 251,054.32 GNMA POOL 10476041 .000 6.181 AAA 105.160 263,097.08 .08 36209MZE7 6.5001 06/15/2028 DD 06/01/98 AAA 264,009.12 .07 192,239.74 GNMA POOL 10478626 ,000 6.187 AAA 105.066 201,461.24 .06 36209QVT9 6.5001 01/15/2029 DD 01/01/99 AAA 201,979.39 .OS 249,232.17 GNMA POOL 10480598 ,000 6.187 AAA 105.066 261,187.54 .OB 36209S3F6 6.5001 10/15/2028 DD 10/01/98 AAA 261,859.29 ,06 513,626.64 GNMA POOL 10485527 .ooo 6.194 AAA 104.941 539,067.21 .17 36209YLG1 6.5001 06/15/2031 DD 06/01/01 AAA 539,007.04 .13 595,142.30 GNMA POOL 10485610 .ooo 6.194 AAA 104 .941 624,620.44 .20 36209YN38 6.5001 07/15/2031 DD 07/01/01 AAA 624,550.72 .15 119,302. 79 GNMA POOL 10485682 .ooo 6. 194 AAA 104.941 125,212.01 .04 36209YRB6 6.5001 08/15/2031 DD 08/01/01 AAA 125,198.03 ,03 113,572.50 GNMA POOL 10485703 ,000 6.194 AAA 104.941 119,197.89 .03 36209YRY6 6,5001 08/15/2031 DD 08/01/01 AAA 119,184.58 .03 13,130.04 GNMA POOL 10512235 .ooo 6.190 AAA 105.004 13,780.38 .oo 36211GBC6 6,5001 11/15/2029 DD 11/01/99 AAA 13,787.06 .oo 233,137.09 GNMA POOL 10514326 .ooo 6.187 AAA 105.066 244,320.38 .07 36211JLF2 6.5001 07/15/2029 DD 07/01/99 AAA 244,948.77 ,06 58,688.36 GNMA POOL 10530053 .ooo 6.218 AAA 104,543 61,595.27 .01 36212CZS3 6.5001 04/15/2031 DD 04/01/01 AAA 61,354.55 .02 69,116.97 GNMA POOL 10530290 .ooo 6.194 AAA 104 .941 72,432,43 .02 36212DC31 6.5001 03/15/2031 DD 04/01/01 AAA 72,532.32 .02 119,351.66 GNMA POOL f0537885 .000 6.194 AAA 104 .941 125,263.29 .04 36212MRE1 6.5001 02/15/2031 DD 02/01/01 AAA 125,249.31 .03 14,042.09 GNMA POOL 10547512 .ooo 6.194 AAA 104,941 14,737.61 .oo 36212YGV9 6,5001 04/15/2031 DD 04/01/01 AAA 14,735.97 .00 128,666.49 GNMA POOL 10547715 .ooo 6.194 AAA 104,941 134,838.46 .04 36212YNB2 6,5001 02/15/2031 DD 02/01/01 AAA 135,024.43 .03 85,547.22 GNMA POOL 10552322 .000 6. 194 AAA 104 .941 89,784.48 .02 36213ESK3 6,5001 01/15/2032 DD 01/01/02 AAA 89,774,46 .02 YLDANAL YIELD ANALYSIS PAGE I 11 OCSF07522202 2003/10/31 RUN DATE : 11/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME 11.55.02 =====================================-=-=========---=--=----===----=======--========================--=-===================== PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL ----------------------------------------------------------------------·-------------------------- 668,619.12 GNHA POOL 10552466 .ooo 6,215 AAA 104.581 701,736.66 .22 J6213EWJ6 6,5001 03/15/2032 DD 03/01/02 AAA 699,247.66 .17 517,731.19 GNMA POOL 10552659 .ooo 6,196 AAA 104,910 543,375.05 ,17 J6213E5U6 6,5001 07/15/2032 DD 07/01/02 AAA 543,152.62 ,13 510,446.20 GNMA POOL 10561017 .ooo 6,194 AAA 104.941 535,729.24 ,17 36213QG29 6,5001 07/15/2031 DD 07/01/01 AAA 535,669.44 ,13 294,577.46 GNHA II POOL 10080395 .000 3,461 AAA 101,136 291,907.85 .09 J6225CNM4 VAR RT 04/20/2030 DD 04/01/00 AAA 297,922.68 .07 2,659,680.88 GNMA II POOL t080408X .ooo 3.461 AAA 101,135 2,632,668.49 ,87 J6225CN28 6,5001 05/20/2030 DD 05/01/00 AAA 2,689,870.92 .66 3,000,000.00 GTE NORTH INC DEB SER A .ooo 5.944 Al 100.937 3,063,750.00 .97 J62337AD9 6,0001 01/15/2004 DD 01/15/94 A+ 3,028,110.00 .75 5,ooo,ooo.oo GENERAL ELEC CAP MTN fTR 00575 .ooo 5,278 AAA 103,265 5,203,500.00 1.67 J6962GZYJ 5,4501 01/15/2013 DD 12/06/02 AAA 5,163,250.00 1.28 J,000,000.00 GENERAL MTRS ACCEP CORP SR NT .ooo 5.814 Al 105.343 3,064,350.00 1.02 370425SD3 6,1251 08/28/2007 DD 08/29/02 BBB 3,160,290.00 ,78 3,ooo,000.00 GOLDMAN SACHS GROUP INC SR NT .ooo 4.040 AA3 102,093 3,030,030.00 .99 38141GCS1 4.1251 01/15/2008 DD 01/13/03 A+ 3,062,790.00 ,76 1,635,000.00 HOUSEHOLD FIN CORP NT .ooo 5.834 Al 109.281 1,772,820.00 .57 441812JW5 6.3751 10/15/2011 DD 10/23/01 A 1,786,744.35 .44 3,000,000.00 JP MORGAN CHASE & CO SUB NT ,000 5.478 A2 104.968 3,127,260.00 1.01 46625HAT7 5,7501 01/02/2013 DD 11/25/02 A 3,149,040.00 .78 3,200,000.00 MORGAN STANLEY NT .ooo 3.637 AA3 99 .671 3,195,648.00 1.03 617446HW2 3,6251 04/01/2008 DD 03/06/03 A+ 3,189,472.00 .79 J,000,000.00 NATIONAL RURAL UTILS COOP FIN .000 6,263 A2 115,765 3,465,480.00 1. 12 637432CU7 7,2501 03/01/2012 DD 03/07/02 A 3,472,950.00 .86 5,ooo,ooo.oo PHILIP MORRIS COS INC NTS .ooo 7,362 BAA2 101. 875 5,263,000.00 1.64 718154CH8 7,5001 04/01/2004 DD 04/01/97 BBB 5,093,750.00 1.26 3,497,276.28 SBA GTD DEV PARTN 2001-20C 1 .ooo 5.886 AAA 107. 715 3,497,276.28 1.21 83162CLJO 6.3401 03/01/2021 AAA 3,767,091.15 .93 YLDANAL YIELD ANALYSIS PAGE 12 OCSF07522202 2003/10/31 RUN DATE 11/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME 11.ss.02 -. --. -. --~--.-------------------- PAR VALUE YT'H AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOQK YIELD S-P PRICE MARKET VALUE % TOTAL ---------------------------------------------------------·--------------------------------------- 2,504,229.76 SBA GTD PARTN CTFS SBIC-PS 01 .000 6.220 AAA 106.745 2,504,229.76 .86 831641DD4 6,640% 02/10/2011 DD 02/21/01 NR 2,673,140.06 .66 1,600,000.00 UNITED AIRLS PASSTHRU 01-1 C .ooo 82,780 CA 8.252 1,600,000.00 ,04 909317BC2 6,8311 03/01/2010 DD 08/22/01 A-132,032.00 .03 20,000,000.00 US TREASURY NOTES .ooo 5.591 AAA 111.781 22,620,312.50 7,23 9128272JO 06,250% 02/15/2007 DD 02/15/97 AAA 22,356,300.00 5.52 3,427,530.00 US TREASURY INFLATION INDEX NT .ooo 3.255 AAA 111.375 3,738,499.05 1.23 9128273T7 3,625% 01/15/2008 DD 01/15/98 AAA 3,817,411.54 .94 14,631,llO,OO US TREASURY INFLATION INDEX NT .ooo 3,424 AAA 113,156 16,264,178.79 5.35 9128274Y5 3.875% 01/15/2009 DD 01/15/99 AAA 16,556,051.99 4.09 57,100,000.00 US TREASURY NOTES .ooo 5.335 AAA 107. 781 62,782,901.47 19,91 9128276N7 05.750% 11/15/2005 DD 11/15/00 AAA 61,543,236.50 15.20 12,000,000.00 US TREASURY NT .ooo 3.242 AAA 100,250 11,870,156.25 3.89 912828BG4 3,250% 08/15/2008 DD 08/15/03 AAA 12,030,000.00 2,97 3,000,000.00 VERIZON GLOBAL FOG CORP GLOBAL .000 6.431 A2 114.687 3,530,490.00 1.11 92344GAT3 7,375% 09/01/2012 DD 08/26/02 A+ 3,440,610.00 .es 3,500,000.00 VIRGINIA ELEC & PWR 01 SER A .ooo 5.357 A3 107,328 3,487,680.00 1.21 927804ENO 5,750% 03/31/2006 DD 03/27/01 BBB+ 3,756,480.00 .93 16,310,000.00 US TREASURY INFLATION INDEX NT 3,817 3,087 AAA 109.344 14,382,973,87 5.77 9128272H3 3,375% 01/15/2007 DD 01/15/97 AAA 17,833,965.63 4.40 15,500,000.00 FEDERAL NATL MTG ASSN DEBS 5 .967 6.660 AAA 106.982 16,154,410.00 5.36 31359MFH1 7.125% 02/15/2005 DD 02/14/00 AAA 16,582,239.45 4,10 1,162,823.29 FHLMC MULTICLASS MTG SER E3 A 6 ,316 3.895 AAA 100.598 1,164,062.14 .37 3133TCE95 VAR RT 08/15/2032 DD 12/01/97 AAA 1,169,776.97 ,29 791,354.15 GNMA GTD REMIC TR 2000-9 FH 6 ,320 1.609 AAA 100,701 791,354,15 .25 3837H4NX9 VAR RT 02/16/2030 AAA 796,901.54 .20 9,260,30 GNMA POOL 10500917 6 ,389 5.787 AAA 103,688 e, no.o5 .oo 36210SPAO 6,000% 04/15/2029 DD 04/01/99 AAA 9,601.77 .oo 38,692.47 GNMA POOL 10506636 6. 389 5.787 AAA 103.688 36,727.61 .01 36210YY90 6,000% 04/15/2029 DD 04/01/99 AAA 40,119,25 .01 YLDANAL YIELD ANALYSIS PAGE l 13 OCSF07522202 2003/10/31 RUN DATE : 11/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME : 11.55.02 -=--=:=----·--==·--==-==~=------=== ----= PAR VALUE YT'H AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARXET VALUE I TOTAL ------------------------------------------------------------------------------------------------ 376,036.38 GNMA POOL 10503388 6,389 5.787 AAA 103.688 356,940.78 .12 36210VF55 6.0001 03/15/2029 DD 03/01/99 AAA 389,902.72 .10 12,708.99 GNMA POOL 10499153 6. 389 5,787 AAA 103.688 12,063.61 .oo 36210QQE5 6,000% 02/15/2029 DD 02/01/99 AAA 13,177.63 .oo 463,211.07 GNMA POOL 10496461 6. 390 5. 787 AAA 103.688 439,688.62 ,15 36210MQN4 6.0001 01/15/2029 DD 01/01/99 AAA 480,291.98 .12 119,840.58 GNMA POOL 10491103 6 .390 5,787 AAA 103.688 113,754.94 .04 36210FRY4 6,0001 01/15/2029 DD 01/01/99 AAA 124,259.70 .03 12,859.66 GNMA POOL 10486720 6,390 5.787 AAA 103.688 12,206.64 .oo 36210AVM6 6.000% 12/15/2028 DD 12/01/98 AAA 13,333.86 .oo 26,166.85 GNMA POOL 10497343 6,390 5.787 AAA 103.688 24,838.07 .oo 36210NP45 6,000% 12/15/2028 DD 12/01/98 AAA 27,131.75 .01 16,713.39 GNMA POOL 10469688 6 .391 5.787 AAA 103.688 15,864.66 .oo 36209EXR8 6,000% 11/15/2028 DD 11/01/98 AAA 17,329.70 .oo 22,920.62 GNMA POOL 10467279 6. 391 5,787 AAA 103.688 21,756.68 .oo 36209CCQ7 6.000% 10/15/2028 DD 10/01/98 AAA 23,765.82 .01 41,027.77 GNMA POOL 10457814 6,391 5.787 AAA 103.688 38,944.32 .01 36208QSB3 6.000% 10/15/2028 DD 10/01/98 AAA 42,540.67 .01 399,169.71 GNMA POOL 10467286 6 .391 5.787 AAA 103.688 378,899.37 ,13 36209CCX2 6,000% 10/15/2028 DD 10/01/98 AAA 413,889.09 .10 533,533.02 GNMA POOL 10465555 6 .392 5.787 AAA 103.688 506,439.56 .17 36209AE48 6,0001 09/15/2028 DD 09/01/98 AAA 553,207.05 ,14 15,385.72 GNMA POOL 10483452 6. 392 5.787 AAA 103.688 14,604.42 .oo 36209WBV3 6.000% 09/15/2028 DD 09/01/98 AAA 15,953.07 .oo 488,233.06 GNMA POOL 10465546 6 .392 5.787 AAA 103.688 463,439.98 ,16 36209AET3 6,000% 08/15/2028 DD 08/01/98 AAA 506,236.65 ,13 442,451.26 GNMA POOL 10468339 6 .392 5.787 AAA 103.688 419,983.05 .14 36209DHQO 6.0001 08/15/2028 DD 08/01/98 AAA 458,766.65 .11 29,465.34 GNMA POOL 10438057 6,, 393 5.787 AAA 103.688 27,969.07 .oo 36207PTN9 6.0001 05/15/2028 DD 05/01/98 AAA 30,551.87 .01 YLDANAL YIELD ANALYSIS PAGE 14 OCSF07522202 2003/10/31 RUN DATE 11/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME : 11.55.02 ___ ..;._ __ ----= == =::;-=.=-=~===:=:===========--=-===--=·===---=---=--='=== == PAR VALUE YT'M AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL ------------------------------·----·-------------------------------------------------------- 20,172.26 GNMA POOL 10468330 6. 393 5.787 AAA 103.688 19,147.88 .oo 36209DHF4 6.000% 05/15/2028 DD 05/01/98 AAA 20,916.11 .01 2,987,069.26 FHLMC HULTICLASS CTF SER 1620Z 6. 499 5. 711 AAA 105.060 2,830,929.32 1.01 3133Tl7A4 6.000% 11/15/2023 DD 11/01/93 AAA 3,138,214.96 .78 348,775.13 GNMA II POOL f080088H 6. 705 4.307 AAA 101.579 356,404.59 .11 36225CC20 7.375% 06/20/2027 DD 06/01/97 AAA 354,280.89 .09 2,000,000.00 MARSH & MCLENNAN COS INC SR NT 6. 717 6.423 A2 103,140 1,992,280.00 .66 571748AB8 6,6251 06/15/2004 DD 06/14/99 AA-2,062,800.00 .51 3,000,000.00 FORD MTR CR CO GLOBAL LANDMARK 6,739 6,512 A3 102,890 2,995,080.00 ,99 345397SJ3 6,700% 07/16/2004 DD 07/16/99 BBB 3,086,700.00 .76 2,500,000.00 COUNTRYWIDE HOME LNS INC NT 6 ,866 6,635 A3 103.234 2,498,400.00 .83 22237UAB8 6.850% 06/15/2004 DD 06/24/99 A 2,580,850.00 .64 249,586.68 GNMA II POOL 10080023 6 .992 5.489 AAA 102,486 253,720.46 .oe 36225CAZ9 VAR RT 12/20/2026 DD 12/01/96 AAA 255,791.16 .06 2,100,000.00 FEDERAL NATL MTG ASSN DEBS 7 .113 5.813 AAA 113. 971 2,030,133.00 ,77 31359HEY5 6,625% 09/15/2009 DD 09/01/99 AAA 2,393,396.67 .59 1,000,000.00 FORD MOTOR CR CO NT 7 .582 6,452 A3 104,625 965,170.00 .33 345397GV9 6,7501 05/15/2005 DD 05/24/93 BBB 1,046,250.00 ,26 947,453.67 WMP/HUNTOON PAIGE f000-11150 7 .684 7.262 AAA 103.282 926,876,17 .31 302998GE3 7.500% 12/01/2030 DD 10/21/99 AAA 978,552.51 .24 3,000,000.00 PACIFICORP SECD MTN fTR 00115 7,709 6.943 A3 105.140 2,950,530.00 1.02 69512EEU5 7.300% 10/22/2004 DD 10/22/92 A 3,154,200.00 ,78 YLDANAL OCSF07522202 DISTRICT: LONG-TERM OPERATING PAR VALUE SECURITY ID SECURITY DESCRIPTION 1,600,000.00 ALLSTATE CORP SR NT 020002AL5 7.875% 05/01/2005 DD 05/01/00 TOTAL FIXED INCOME SECURITIES TOTAL YT'M AT BOOK 7 .967 ,384 ,367 YIELD ANALYSIS 2003/10/31 CURRENT MOODY MARKET YIELD S-P PRICE 7.244 Al 108.718 A+ 5,211 4,983 PAGE RUN DATE RUN TIME TOTAL COST/ MARKET VALUE 1,594,032.00 1,739,488.00 304,710,815.54 309,050,429.33 400,531,968.06 404,871,581.85 15 11/06/03 11.55.02 I TYPE I TOTAL .56 .43 100.00 76.33 100.00 100.00 Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGO00lO000 10/31/2003 Status: FINAL I Description Net Unrealized Price Cost Market Value % of Gain/Loss Base Shares Par Base Base Total Base U.S. DOLLAR CASH & CASH EQUIVALENTS INTEREST RECEIVABLE 4,526,292.17 4,526,292.17 1.07% 0.00 CASH -53,833.50 -53,833.50 -0.01% 0.00 RECEIVABLE FOR INVESTMENTS 87,101.26 87,101.26 0.02% 0.00 SOLD PAYABLE FOR INVESTMENTS -24,823,515.63 -24,823,515.63 -5.88% 0.00 PURCHASED FEDERAL HOME LN BK CONS DISC 99.4332 2,000,000.000 1,988,663.33 1,988,663.33 0.47% 0.00 NMAT 11 /07 /2003SEC ID: 313384NY1 FEDERAL HOME LN BKS CONS 99.7885 3,100,000.000 3,093,442.53 3,093,442.53 0.73% 0.00 DISCMA T 11 / 19 / 2003SEC ID: 313384PL7 FEDERAL HOME LN BK CONS DISC 99.9214 1,600,000.000 1,598,743.11 1,598,743.11 0.38% 0.00 NMAT 11/26/2003SEC ID: 313384PTO FEDERAL HOME LN BK CONS 99.6879 1,400,000.000 1,395,630.83 1,395,630.83 0.33% 0.00 DISCSEC ID: 313384SS9 FEDERAL HOME LN BK CONS 99.6136 600,000.000 597,681.67 597,681.67 0.14% 0.00 DISCMAT 02/09/2004SEC ID: 313384SWO FEDERAL HOME LN BKS CINS 99.4625 900,000.000 895,162.50 895,162.50 0.21% 0.00 DISCMAT 03 / 17 /2004SEC ID: 313384UK3 FEDERAL HOME LN MTG CORP 99.7214 12,100,000.000 12,066,294.78 12,066,294.78 2.86% 0.00 DISCMAT 11/26/2003SEC ID: 313396PT4 FEDERAL HOME LN MTG CORP 99.7308 20,800,000.000 20,744,004.66 20,744,004.66 4.91% 0.00 DISCMAT 01/15/2004SEC ID: 313396RV7 FEDERAL HOME LN MTG CORP 99.7266 1,200,000.000 1,196,718.67 1,196,718.67 0.28% 0.00 DISCMAT 01/29/2004SEC ID: 313396SKO FEDERAL HOME LN MTG CORP 99.6614 4,700,000.000 4,684,085.28 4,684,085.28 1.11% 0.00 DISCMAT 02/02/2004SEC ID: 313396SP9 1 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGO00lOO00 10/31/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FEDERAL HOME LN MTG CORP 99.4225 3,800,000.000 3,778,055.00 3,778,055.00 0.90% 0.00 DISCMAT 03/31/2004SEC ID: 313396UZ4 FEDERAL NATL MTG ASSN DISCMAT 99.4677 1,000,000.000 994,677.08 994,677.08 0.24% 0.00 11/12/2003SECID:313588PD1 FEDERAL NATL MTG ASSN 99.7485 13,600,000.000 13,564,090.11 13,564,090.11 3.21% 0.00 DISCOUNTMA T 11 / 19 / 2003SEC ID:313588PL3 FEDERAL NATL MTG ASSN DISCSEC 99.6370 200,000.000 199,274.00 199,274.00 0.05% 0.00 ID: 313588QA6 FEDERAL NATL MTG ASSN 99.6627 800,000.000 797,301.63 797,301.63 0.19% 0.00 DISCOUNTMAT 12/ 15/2003SEC ID: 313588QN8 FEDERAL NATL MTG ASSN DISC 99.5530 200,000.000 199,106.00 199,106.00 0.05% 0.00 NTSECID:313588TF2 FEDERAL NATL MTG ASSN 99.5530 8,200,000.000 8,163,346.00 8,163,346.00 1.93% 0.00 DISCOUNTMAT 02/ 19 /2004SEC ID:313588TGO GENERAL ELEC CAP 99.6624 600,000.000 597,974.33 597,974.33 0.14% 0.00 DISCll/ 12/2003SEC ID: 36959JYC1 GENERAL ELEC CAP 99.6579 2,800,000.000 2,790,420.11 2,790,420.11 0.66% 0.00 DISC12/10/2003SEC ID: 36959JZA4 U S TREASURY BILLDUE 99.5160 5,700,000.000 5,672,410.42 5,672,410.42 1.34% 0.00 02/12/2004 DD 08/ 14 /2003SEC ID:912795PK1 UNITED STATES TREASURY 99.4870 17,000,000.000 16,912,790.02 16,912,790.02 4.01% 0.00 BILLDUE 04/22/2004 DD 10/23/03SECID:912795PV7 US TREASURY BILL 0.000% 99.4843 12,000,000.000 11,938,120.00 11,938,120.00 2.83% 0.00 04/29/2004 DD 10/30/03SEC ID: 912795PW5 DREYFUS TREASURY CASH 100.0000 391,594.850 391,594.85 391,594.85 0.09% 0.00 MGMTSEC ID: 99608524 7 TOTAL CASH & CASH EQUIVALENTS 114,6·91,594.850 93,995,631.21 93,995,631.21 22.27% 0.00 FIXED INCOME SECURITIES AIG SUNAMERICA GLOBAL REG S 5. 109.8670 752,000.000 826,199.84 826,199.84 0.20% 0.00 850% 08/01/2008 DD 08/08/01SECID:U00907AAO 2 Workbenc}J. Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLlDATED -OCSGO00lOO00 10/31/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base COMMIT TO PUR FNMA SF MTG 5. 101.5620 23,000,000.000 23,287,500.00 23,359,260.00 5.53% 71,760.00 000% 11/01/2018 DD 11/01/03SECID:01F0504B9 COMMIT TO PUR FNMA SF MTG 6. 102.6560 1,500,000.000 1,536,015.63 1,539,840.00 0.36% 3,824.37 000% 11/01/2033 DD 11/01/03SECID:01F0606B6 ALLSTATE CORP SR NT7.875% 108.7180 1,600,000.000 1,594,032.00 1,739,488.00 0.41% 145,456.00 05/01/2005 DD 05/01/00SEC ID: 020002AL5 ASSOCIATES CORP NORTH AMER5. 102.0930 1,000,000.000 1,041,290.00 1,020,930.00 0.24% -20,360.00 800% 04/20/2004 DD 04/20/99SECID:046003KA6 BANK OF AMERICA CORP SR GBL 103.2500 500,000.000 518,385.00 516,250.00 0.12% -2,135.00 NT6.625% 06/15/2004 DD 06/15/99SEC ID: 066050CW3 BEAR STEARNS MTN # TR 100.0310 900,000.000 899,406.00 900,279.00 0.21% 873.00 00459VAR RT 12/01/2003 DD 08/17/01SECID:073928VC4 BELL ATLANTIC-NEW JERSEY INC5. 101.0930 650,000.000 677,046.50 657,104.50 0.16% -19,942.00 875% 02/01/2004 DD 02/0l/94SECID:077858M6 CIT GROUP INC NEW SR NT 5.500% 106.9210 1,500,000.000 1,527,135.00 1,603,815.00 0.38% 76,680.00 11/30/2007 DD 12/02/02SEC ID: 125581ADO CITIGROUP INC GLOBAL SUB NT5. 105.5000 5,000,000.000 5,333,600.00 5,275,000.00 1.25% -58,600.00 625% 08/27/2012 DD 08/26/02SECID: 172967BP5 COLGATE PALMOLIVE MTN TR 100.2960 300,000.000 308,808.00 300,888.00 0.07% -7,920.00 000585.270% 12/01/2003 DD 11/24/98SEC ID: 19416QCK4 COUNTRYWIDE HOME LNS INC NT6. 103.2340 2,500,000.000 2,498,400.00 2,580,850.00 0.61% 82,450.00 850% 06/15/2004 DD 06/24/99SECID:22237UAB8 WMP/HUNTOON PAIGE #000-103.2824 947,453.670 926,876.17 978,552.51 0.23% 51,676.34 111507 .500% 12/01/2030 DD 10/21/99SECID:302998GE3 FHLMC GROUP #G4-0353 7.500% 102.3615 96,013.440 98,443.79 98,280.79 0.02% -163.00 10/01/2004 DD 03/01/99SEC ID: 3128DBMA2 3 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGO00l0000 10/31/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FEDERAL HOME LN BK CONS BDS7. 107.0820 7,:500,000.000 7,997,625.00 8,031,152.25 1.90% 33,527.25 125% 02/15/2005 DD 02/08/00SEC ID: 3133MAUN7 FHLMC MULTICLASS MTG SER E3 100.5980 1,162,823.290 1,164,062.14 1,169,776.97 0 .28% 5,714.83 AVAR RT 08/15/2032 DD 12/01/97SECID:3133TCE95 FHLMC MULTICLASS CTF SER 105.0600 2,'987,0'69.260 2,830,929.32 3,138,214.96 0.74% 307,285.64 162026.000% 11/15/2023 DD 11/0l/93SECID:3133Tl7A4 FEDERAL FARM CR BKS CONS 100.9990 1,:350,000.000 1,399,963.50 1,363,485.83 0.32% -36,477.67 SYSTE6.40% 01/23/2004 DD 01/01/1999SECID:31331H6G7 FEDERAL HOME LN MTG CORP DEB 101.2078 1, 100,0100.000 1,125,905.00 1,113,286.24 0.26% -12,618.76 3.750% 04/15/2004 DD 04/15/02SECID:3134A4PH1 FHLMC GROUP #78-6064 6.384% 103.9011 83,215.330 81,186.95 86,461.64 0.02% 5,274.69 01/01/2028 DD 12/01/97SEC ID: 31348SWZ3 FEDERAL NATL MTG ASSN DEBSS. 101.1543 4,200,0,00.000 4,350,168.00 4,248,479.76 1.01% -101,688.24 125% 02/13/2004 DD 02/08/99SEC ID: 31359MEM1 FEDERAL NATL MTG ASSN DEBS6. 113.9713 2,100,000.000 2,030,133.00 2,393,396.67 0.57% 363,263.67 625% 09/15/2009 DD 09/01/99SEC ID: 31359MEY5 FEDERAL NATL MTG ASSN DEBS7. 106.9822 15,500,000.000 16,154,410.00 16,582,239.45 3.93% 427,829.45 125% 02/15/2005 DD 02/14/00SEC ID: 31359MFH1 FEDERAL NATL MTG ASSN DEBS5. 106.9920 11,350,000.000 11,521,271.50 12,143,592.00 2.88% 622,320.50 250% 06/15/2006 DD 06/22/01SECID:31359MJX2 FNMA POOL #0254510 5.000% 101.6953 877,249.280 903,566.76 892,121.37 0.21% -11,445.39 11/01/2017 DD 10/01/02SEC ID: 31371KVB4 FNMA POOL #0254631 5.000% 101.6953 184,179.440 189,704.83 187,301.85 0.04% -2,402.98 02/01/2018 DD Ol/01/03SEC ID: 31371KY47 FNMA POOL #0254760 5.000% 101.6953 165,384.480 170,346.01 168,188.26 0.04% -2,157.75 06/01/2018 DD 05/01/03SEC ID: 31371K5V9 4 Workbencti, I OCSJ>CONSOUJM 2"D . OCSGOOOlOOOO Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: 10/31/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL #0254866 5.000% 101.6953 71,353.350 73,493.96 72,563.01 0.02% -930.95 09/01/2018 DD 08/01/03SEC ID: 31371LCB3 FNMA POOL #0323980 6.000% 104.4063 230,469.730 240,624.81 240,624.80 0.06% -0.01 04/01/2014 DD 09/01/99SEC ID: 31374T2MO FNMA POOL #0357328 5.000% 101.7094 34,122.730 35,146.41 34,706.02 0.01% -440.39 01/01/2018 DD 01/01/03SEC ID: 31376J4M8 FNMA POOL #0456482 6.000% 104.4688 79,6,86.330 83,197.50 83,247.31 0.02% 49.81 02/01/2014 DD 02/01/99SEC ID: 31381CCT2 FNMA POOL #0509649 6.000% 104.4688 240,196.500 250,780.16 250,930.28 0.06% 150.12 09/01/2014 DD 09/0l/99SEC ID: 31383QEWO FNMA POOL #0535451 6.000% 104.4063 182,730.540 190,782.10 190,782.10 0.05% 0.00 06/01/2015 DD 07 /01/00SEC ID: 31384VZQ8 FNMA POOL #0535672 6.000% 104.4063 3 ,985,968.690 4,161,600.44 4,161,600.44 0.99% 0.00 01/01/2016 DD 12/01/00SEC ID: 31384WCH1 FNMA POOL #0545296 6.000% 104.2188 1,333,360.040 1,392,111.21 1,389,611.17 0.33% -2,500.04 11/01/2016 DD 10/01/0lSEC ID: 31385HXZO FNMA POOL #0545580 6.000% 104.2813 110,642.710 115,517.90 115,379.60 0.03% -138.30 03/01/2017 DD 03/0l/02SEC ID: 31385JCR7 FNMA POOL #0545998 6.000% 102.6155 216,022.630 224,663.53 221,672.65 0.05% -2,990.88 11/01/2032 DD 10/0l/02SEC ID: 31385JRT7 FNMA POOL #0555101 6.000% 104.3688 193,122.560 201,632.01 201,559.60 0.05% -72.41 10/01/2017 DD 11/0l/02SEC ID: 31385WU23 FNMA POOL #0555285 6.000% 102.7930 865,703.540 900,331.69 889,882.38 0.21% -10,449.31 03/01/2033 DD 02/0l/03SEC ID: 31385W2S7 FNMA POOL #0555363 5.000% 101.6953 396,474.020 408,368.24 403,195.48 0.10% -5,172.76 04/01/2018 DD 03/01/03SEC ID: 31385W5Yl 5 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGO00l0000 10/31/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL #0555528 6.000% 102.7930 844,289.080 878,060.65 867,869.82 0.21% -10,190.83 04/01/2033 DD 05/01/03SEC ID: 31385XD95 FNMA POOL #0555545 5.000% 101.6953 331,080.610 341,013.03 336,693.45 0.08% -4,319.58 06/01/2018 DD 05/01/03SEC ID: 31385XES2 FNMA POOL #0555640 6.000% 102.7930 850,142.180 884,147.87 873,886.40 0.21% -10,261.47 07/01/2033 DD 06/01/03SEC ID: 31385XHR1 FNMA POOL #0576386 6.000% 103.9390 68,766.250 71,796.26 71,474.97 0.02% -321.29 05/01/2016 DD 05/01/0lSEC ID: 31386XJ72 FNMA POOL #0576739 6.000% 104.2813 192,504.740 200,986.98 200,746.35 0.05% -240.63 04/01/2016 DD 04/01/0lSEC ID: 31386XV86 FNMA POOL #0580888 6.000% 104.2813 251,623.730 262,710.89 262,396.37 0.06% -314.52 05/01/2016 DD 05/01/0lSEC ID: 31387DJ91 FNMA POOL #0594002 6.000% 104.2188 ll 94,141.980 202,696.36 202,332.34 0.05% -364.02 07/01/2016 DD 07 /01/0lSEC ID: 31387T3K8 FNMA POOL #0597376 6.000% 104.2188 266,887.470 278,647.20 278,146.79 0.07% -500.41 09/01/2016 DD 08/01/0lSEC ID: 31387XT96 FNMA POOL #0605259 6.000% 104.2813 201,279.100 210,147.96 209,896.36 0.05% -251.60 09/01/2016 DD 09/01/0lSEC ID: 31388HMG1 FNMA POOL #0608366 6.000% 104.2813 ll13,031.180 118,011.61 117,870.33 0.03% -141.28 10/01/2016 DD 09/01/0lSEC ID: 313881Z78 FNMA POOL #0616734 6.000% 104.2813 171,985.660 179,563.77 179,348.80 0.04% -214.97 12/01/2016 DD 12/01/0lSEC ID: 31388WEF9 FNMA POOL #0630812 6.000% 103.9946 215,163.970 224,644.63 223,758.84 0.05% -885.79 02/01/2017 DD 02/01/02SEC ID: 31389NYH2 FNMA POOL #0632376 6.000% 104.3688 914,151.810 954,431.64 954,088.82 0.23% -342.82 07/01/2017 DD 07 /Ol/02SEC ID: 31389QQSO 6 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGO00l0000 10/31/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL #0653116 6.000% 104.3688 519,924.330 542,833.50 542,638.52 0.13% -194.98 07/01/2017 DD 07 /01/02SEC ID: 31390QSD8 FNMA POOL #0673280 6.000% 104.2188 216,161.120 225,685.71 225,280.42 0.05% -405.29 08/01/2017 DD 11/01/02SEC ID: 31391P6R2 FNMA POOL #0681309 5.000% 101.6953 595,226.370 613,083.16 605,317.30 0.14% -7,765.86 02/01/2018 DD 02/01/03SEC ID: 31391Y3S4 FNMA POOL #0681334 5.000% 101.6953 75,098.460 77,351.41 76,371.61 0.02% -979.80 02/01/2018 DD 0l/01/03SEC ID: 31391Y4Tl FNMA POOL #0685665 5.000% 101.6953 37,920.870 39,058.50 38,563.75 0.01% -494.75 02/01/2018 DD 02/01/03SEC ID: 31400EW22 FNMA POOL #0686318 5.000% 101.6953 327,881.100 337,717.53 333,439.70 0.08% -4,277.83 03/01/2018 DD 03/01/03SEC ID: 31400FPB7 FNMA POOL #0688739 5.000% 101.6953 126,614.000 130,412.41 128,760.50 0.03% -1,651.91 06/01/2018 DD 06/01/03SEC ID: 31400JEL9 FNMA POOL #0693834 5.000% 101.6953 769,146.500 792,220.89 782,185.92 0.19% -10,034.97 03/01/2018 DD 03/01/03SEC ID: 31400PY74 FNMA POOL #0695852 5.000% 101.6953 285,868.570 294,444.62 290,714.93 0.07% -3,729.69 05/01/2018 DD 05/0l/03SEC ID: 31400SBV0 FNMA POOL #0695889 5.000% 101.6953 863,905.190 889,822.34 878,551.06 0.21% -11,271.28 05/01/2018 DD 05/01/03SEC ID: 31400SC23 FNMA POOL #0697026 5.000% 101.6953 28,264.680 29,112.63 28,743.85 0.01% -368.78 05/01/2018 DD 04/0l/03SEC ID: 31400TLF2 FNMA POOL #0698939 6.000% 104.3938 102,429.910 106,943.23 106,930.42 0.03% -12.81 09/01/2017 DD 03/01/03SEC ID: 31400VPY2 FNMA POOL #0702210 5.000% 101.6963 288,142.510 296,786.79 293,030.34 0.07% -3,756.45 05/01/2018 DD 05/0l/03SEC ID: 31401ADP9 7 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGO00l0000 10/31/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL #0703195 6.000% 104.6563 84,051.110 87,754.62 87,964.74 0.02% 210.12 01/01/2017 DD 04/01/03SEC ID: 31401BGC3 FNMA POOL #0709148 5.000% 101.6953 307,604.060 316,832.18 312,818.90 0 .07% -4,013.28 06/01/2018 DD 06/01/03SEC ID: 31401HZM7 FNMA POOL #0710235 5.000% 101.6953 826,276.380 851,064.68 840,284.33 0.20% -10,780.35 06/01/2018 DD 06/01/03SEC ID: 31401KBC8 FNMA POOL #0713344 5.000% 101.6953 26,618.450 27,417.00 27,069.72 0.01% -347.28 06/01/2018 DD 06/0l/03SEC ID: 31401NP52 FNMA POOL #0720369 5.000% 101.6963 2,498,804.490 2,573,768.62 2,541,192.34 0.60% -32,576.28 06/01/2018 DD 06/0l/03SEC ID: 31401WJNO FNMA POOL #0721629 5.000% 101.8203 321,406.660 331,048.87 327,257.26 0.08% -3,791.61 07/01/2018 DD 06/0l/03SEC ID: 31401XVW4 FORD MOTOR CR CO NT6.750% 104.6250 1,000,000.000 965,170.00 1,046,250.00 0.25% 81,080.00 05/15/2005 DD 05/24/93SEC ID: 345397GV9 FORD MTR CR CO GLOBAL 102.8900 3,000,000.000 2,995,080.00 3,086,700.00 0 .73% 91,620.00 LANDMARK6.700% 07/16/2004 DD 07/16/99SECID:345397SJ3 GNMA POOL #0596612 6.500% 104.9102 385,246.670 404,328.42 404,162.90 0.10% -165.52 09/15/2032 DD 09/01/02SEC ID: 36200BYH4 GNMA POOL #0569358 6.500% 104.5809 1,371,750.180 1,403,900.57 1,434,588.20 0.34% 30,687.63 04/15/2032 DD 04/01/02SEC ID: 36200QQK3 GNMA POOL #0569685 6.500% 104.9414 60,043.020 63,017.02 63,009.99 0.01% -7.03 02/15/2032 DD 02/0l/02SEC ID: 36200Q2S2 GNMA POOL #0570019 6.500% 104.9102 99,323.620 104,243.25 104,200.57 0.02% -42.68 07/15/2032 DD 07 /01/02SEC ID: 36200RG48 GNMA POOL #0574323 6.500% 104.9414 636,536.190 668,064.62 667,990.05 0.16% -74.57 12/15/2031 DD 12/01/0lSEC ID: 36200WAY7 8 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGO00l000O 10/31/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base GNMA POOL #0575364 6.500% 104.9414 64,838.540 68,050.07 68,042.48 0.02% -7.59 11/15/2031 DD 11/01/0lSEC ID: 36200XFD6 GNMA POOL #058711 7 6.500% 104.9102 24,439.350 25,649.86 25,639.36 0.01% -10.50 06/15/2032 DD 06/0l/02SEC ID: 36201MG22 GNMA POOL #0587439 6.500% 104.9102 75,524.470 79,265.29 79,232.84 0.02% -32.45 11/15/2032 DD 12/0l/02SEC ID: 36201MS45 GNMA POOL #0421389 6.500% 105.2227 16,567.020 17,387.61 17,432.26 0.00% 44.65 04/15/2026 DD 04/01/96SEC ID: 36206UC23 GNMA POOL #0438057 6.000% 103.6875 29,465.340 27,969.07 30,551.87 0.01% 2,582.80 05/15/2028 DD 05/01/98SEC ID: 36207PTN9 GNMA POOL #0449851 6.500% 104.6298 25,055.710 26,296.75 26,215.74 0.01% -81.01 01/15/2028 DD 01/0l/98SEC ID: 36208FWLO GNMA POOL #0457814 6.000% 103.6875 41,027.770 38,944.32 42,540.67 0.01% 3 ,596.35 10/15/2028 DD 10/0l/98SEC ID: 36208QSB3 GNMA POOL #0465546 6.000% 103.6875 488,233.060 463,439.98 506,236.65 0.12% 42,796.67 08/15/2028 DD 08/01/98SEC ID: 36209AET3 GNMA POOL #0465555 6.000% 103.6875 533,533.020 506,439.56 553,207.05 0.13% 46,767.49 09/15/2028 DD 09/01/98SEC ID: 36209AE48 GNMA POOL #0466845 6.500% 105.1602 74,906.260 78,616.46 78,771.54 0.02% 155.08 06/15/2028 DD 06/0l/98SEC ID: 36209BTA6 GNMA POOL #0467279 6.000% 103.6875 22,920.620 21,756.68 23,765.82 0.01% 2,009.14 10/15/2028 DD 10/01/98SEC ID: 36209CCQ7 GNMA POOL #0467286 6.000% 103.6875 399,169.710 378,899.37 413,889.09 0.10% 34,989.72 10/15/2028 DD 10/01/98SEC ID: 36209CCX2 GNMA POOL #0468052 6.500% 105.1602 262,533.110 275,536.70 276,080.24 0 .07% 543.54 07/15/2028 DD 07 /01/98SEC ID: 36209C5M4 9 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSGO00I0000 10/31/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base GNMA POOL #0468330 6.000% 103.6875 20,172.260 19,147.88 20,916.11 0.00% 1,768.23 05/15/2028 DD 05/01/98SEC ID: 36209DHF4 GNMA POOL #0468339 6.000% 103.6875 442,451.260 419,983.05 458,766.65 0.11% 38,783.60 08/15/2028 DD 08/01/98SEC ID: 36209DHQO GNMA POOL #0469688 6.000% 103.6875 16,713.390 15,864.66 17,329.70 0.00% 1,465.04 11/15/2028 DD ll/01/98SEC ID: 36209EXR8 GNMA POOL #0476041 6.500% 105.1602 251,054.320 263,097.08 264,009.12 0.06% 912.04 06/15/2028 DD 06/01 /98SEC ID: 36209MZE7 GNMA POOL #0478626 6.500% 105.0664 192,239.740 201,461.24 201,979.39 0.05% 518.15 01/15/2029 DD 01/01/99SEC ID: 36209QVT9 GNMA POOL #0480598 6.500% 105.0664 249,232.170 261,187.54 261,859.29 0.06% 671.75 10/15/2028 DD 10/0l/98SEC ID: 36209S3F6 GNMA POOL #0483452 6.000% 103.6875 15,385.720 14,604.42 15,953.07 0 .00% 1,348.65 09/15/2028 DD 09/01/98SEC ID: 36209WBV3 GNMA POOL #0485527 6.500% 104.9414 513,626.640 539,067.21 539,007.04 0 .13% -60.17 06/15/2031 DD 06/01/0lSEC ID: 36209YLG1 GNMA POOL #0485610 6.500% 104.9414 595,142.300 624,620.44 624,550.72 0.15% -69.72 07/15/2031 DD 07 /01/0lSEC ID: 36209YN38 GNMA POOL #0485682 6.500% 104.9414 ].19,302.790 125,212.01 125,198.03 0.03% -13.98 08/15/2031 DD 08/01/0lSEC ID: 36209YRB6 GNMA POOL #0485703 6.500% 104.9414 ].13,572.500 119,197.89 119,184.58 0.03% -13.31 08/15/2031 DD 08/01/0lSEC ID: 36209YRY6 GNMA POOL #0486720 6.000% 103.6875 12,859.660 12,206.64 13,333.86 0.00% 1,127.22 12/15/2028 DD 12/0l/98SEC ID: 36210AVM6 GNMA POOL #0491103 6.000% 103.6875 ].19,840.580 113,754.94 124,259.70 0.03% 10,504.76 01/15/2029 DD 01/01/99SEC ID: 36210FRY4 10 "[orkbench, Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGOOOl0000 10/31/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base S1-ares Par Base Base Total Base GNMA POOL #0496461 6.000% 103.6875 463,211.070 439,688.62 480,291.98 0.11% 40,603.36 01/15/2029 DD 01/0l/99SEC ID: 36210MQN4 GNMA POOL #0497343 6.000% 103.6875 26,166.850 24,838.07 27,131.75 0.01% 2,293.68 12/15/2028 DD 12/01/98SEC ID: 36210NP45 GNMA POOL #0499153 6 .000% 103.6875 12,708.990 12,063.61 13,177.63 0.00% 1,114.02 02/15/2029 DD 02/01/99SEC ID: 36210QQE5 GNMA POOL #0500917 6.000% 103.6875 9,260.300 8,790.05 9,601.77 0.00% 811.72 04/15/2029 DD 04/01/99SEC ID: 36210SPAO GNMA POOL #0503388 6.000% 103.6875 376,036.380 356,940.78 389,902.72 0.09% 32,961.94 03/15/2029 DD 03/0l/99SEC ID: 36210VF55 GNMA POOL #0506636 6.000% 103.6875 38,692.470 36,727.61 40,119.25 0.01% 3,391.64 04/15/2029 DD 04/01/99SEC ID: 36210YY90 GNMA POOL #0512235 6.500% 105.0039 13,130.040 13,780.38 13,787.06 0.00% 6.68 11/15/2029 DD 11/0l/99SEC ID: 36211GBC6 GNMA POOL #0514326 6.500% 105.0664 233,137.090 244,320.38 244,948.77 0.06% 628.39 07/15/2029 DD 07 /01 /99SEC ID: 36211JLF2 GNMA POOL #0530053 6.500% 104.5430 58,688.360 61,595.27 61,354.55 0.01% -240.72 04/15/2031 DD 04/01/0lSEC ID: 36212CZS3 GNMA POOL #0530290 6.500% 104.9414 69,116.970 72,432.43 72,532.32 0.02% 99.89 03/15/2031 DD 04/01/0lSEC ID: 36212DC31 GNMA POOL #0537885 6.500% 104.9414 119,351.660 125,263.29 125,249.31 0.03% -13.98 02/15/2031 DD 02/01/0lSEC ID: 36212MRE1 GNMA POOL #0547512 6.500% 104.9414 14,042.090 14,737.61 14,735.97 0.00% -1.64 04/15/2031 DD 04/01/0lSEC ID: 36212YGV9 GNMA POOL #0547715 6.500% 104.9414 128,666.490 134,838.46 135,024.43 0.03% 185.97 02/15/2031 DD 02/01/0lSEC ID: 36212YN82 11 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGO00l0000 10/31/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base GNMA POOL #0552322 6.500% 104.9414 85,547.220 89,784.48 89,774.46 0.02% -10.02 01/15/2032 DD Ol/Ol/02SEC ID: 36213ESK3 GNMA POOL #0552466 6.500% 104.5809 668,619.120 701,736.66 699,247.66 0.17% -2,489.00 03/15/2032 DD 03/01/02SEC ID: 36213EW36 GNMA POOL #0552659 6.500% 104.9102 .'517,731.190 543,375.05 543,152.62 0.13% -222.43 07/15/2032 DD 07 /01 /02SEC ID: 36213E5U6 GNMA POOL #0561017 6.500% 104.9414 .'510,446.200 535,729.24 535,669.44 0.13% -59.80 07/15/2031 DD 07 /01/0lSEC ID: 36213QG29 GNMA II POOL #0080023VAR RT 102.4859 249,586.680 253,720.46 255,791.16 0.06% 2,070.70 12/20/2026 DD 12/01/96SEC ID: 36225CAZ9 GNMA II POOL #080088M 7 .375% 101.5786 348,775.130 356,404.59 354,280.89 0.08% -2,123.70 06/20/2027 DD 06/01/97SEC ID: 36225CC20 GNMA II POOL #0080395VAR RT 101.1356 294,577.460 291,907.85 297,922.68 0.07% 6,014.83 04/20/2030 DD 04/01/00SEC ID: 36225CNM4 GNMA II POOL #080408X 6.500% 101.1351 2,659,680.880 2,632,668.49 2,689,870.92 0.64% 57,202.43 05/20/2030 DD 05/01/00SEC ID: 36225CN28 GTE NORTH INC DEB SER A6.000% 100.9370 3,000,000.000 3,063,750.00 3,028,110.00 0.72% -35,640.00 01/15/2004 DD Ol/15/94SEC ID: 362337AD9 GENERAL ELEC CAP MTN #TR 100.0930 1,000,000.000 1,001,089.00 1,000,930.00 0.24% -159.00 00545VAR RT 05/20/2004 DD 05/20/02SECID:36962GYS7 GENERAL ELEC CAP MTN #TR 103.2650 5,000,000.000 5,203,500.00 5,163,250.00 1.22% -40,250.00 00575 5.450% 01/15/2013 DD 12/06/02SECID:36962GZY3 GENERAL MTRS ACCEP CORP SR NT 105.3430 3,000,000.000 3,064,350.00 3,160,290.00 0.75% 95,940.00 6.125% 08/28/2007 DD 08/29/02SECID:370425SD3 GOLDMAN SACHS GROUP INC SR NT 102.0930 3,000,000.000 3,030,030.00 3,062,790.00 0.73% 32,760.00 4.125% 01/15/2008 DD 01/13/03SEC ID: 38141GCS1 12 Workbench. Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGO00l00OO 10/31/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base GNMA GTD REMIC TR 2000-9 100.7010 791,354.150 791,354.15 796,901.54 0.19% 5,547.39 FHVAR RT 02/16/2030SEC ID: 3837H4NX9 HOUSEHOLD FIN CORP NT 6.375% 109.2810 1,635,000.000 1,772,820.00 1,786,744.35 0.42% 13,924.35 10/15/2011 DD 10/23/0lSEC ID: 441812JW5 JP MORGAN CHASE & CO SUB NT5. 104.9680 3,I000,000.000 3,127,260.00 3,149,040.00 0.75% 21,780.00 750% 01/02/2013 DD 11/25/02SECID:46625HAT7 LEHMAN BROS HLDGS INC6.625% 102.1870 l ,I000,000.000 1,045,590.00 1,021,870.00 0.24% -23,720.00 04/01/2004 DD 03/26/99SEC ID: 524908BZ2 MARSH & MCLENNAN COS INC SR 103.1400 2,I000,000.000 1,992,280.00 2,062,800.00 0.49% 70,520.00 NT6.625% 06/15/2004 DD 06/14/99SECID:571748AB8 MORGAN STANLEY NT 3.625% 99.6710 3,200,000.000 3,195,648.00 3,189,472.00 0.76% -6,176.00 04/01/2008 DD 03/06/03SEC ID: 617446HW2 NATIONAL RURAL UTILS COOP FIN 115.7650 3,!000,000.000 3,465,480.00 3,472,950.00 0.82% 7,470.00 7.250% 03/01/2012 DD 03/07/02SECID:637432CU7 PACIFICO RP SECD MTN #TR 00115 105.1400 3,000,000.000 2,950,530.00 3,154,200.00 0.75% 203,670.00 7.300% 10/22/2004 DD 10/22/92SECID:69512EEU5 PAINE WEBBER GROUP INC NTS6. 100.3750 500,000.000 519,405.00 501,875.00 0.12% -17,530.00 450% 12/01/2003 DD 12/01/98SECID:695629CE3 PHILIP MORRIS COS INC NTS 7. 101.8750 5,000,000.000 5,263,000.00 5,093,750.00 1.21% -169,250.00 500%04/01/2004 DD 04/01/97SECID:718154CH8 SBA GTD DEV PARTN 2001-20C 16. 107.7150 3,497,276.280 3,497,276.28 3,767,091.15 0.89"/o 269,814.87 340% 03/01/2021SEC ID: 83162CWO SBA GTD PARTN CTFS SBIC-PS 01 106.7450 2,504,229.760 2,504,229.76 2,673,140.06 0.63% 168,910.30 6.640% 02/10/2011 DD 02/21/0lSEC ID: 831641DD4 UNITED AIRLS PASSTHRU 01-1 C 6. 8.2520 1,600,000.000 1,600,000.00 132,032.00 0.03% -1,467,968.00 831% 03/01/2010 DD 08/22/01SECID:909317BC2 13 Workbench Report ID: GL8013 Base Currency: USD Alternate Base Currency: Exchange Rate: Status: FINAL ';:::========================= -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ ~~ OCS~CONSOLIDATED -OCSGO00lO000 Asset Detail by Currency 10/31/2003 Price Description Base Shares Par US BANCORP MTN #TR 001196. 102.4060 1,000,000.000 000% 05/15/2004 DD 05/10/99SEC ID: 91159HEY2 U S TREASURY BONDSl 1.875% 11/15/2003 DD 10/05/83SEC ID: 912810DGO U S TREASURY NOTES06.250% 02/15/2007 DD 02/15/97SEC ID: 9128272JO US TREASURY INFLATION INDEX NT 3.375% 01/15/2007 DD 01/15/97SECID:9128272M3 US TREASURY INFLATION INDEX NT 3.625% 01/15/2008 DD 01/15/98SECID:9128273T7 US TREASURY INFLATION INDEX NT 3.875% 01/15/2009 DD 01/15/99SECID:9128274YS U S TREASURY NOTES05. 750% 11/15/2005 DD 11/15/00SEC ID: 9128276N7 US TREASURY NT 3.250% 08/15/2008 DD 08/ 15/03SEC ID: 912828BG4 VERIZON GLOBAL FDG CORP GLOBAL 7.375% 09/01/2012 DD 08/26/02SECID:92344GAT3 VIRGINIA ELEC & PWR O 1 SER AS. 750% 03/31/2006 DD 03/27/01SECID:927804ENO WELLS FARGO & CO SUBNT6.125% 11/01/2003 DD 11/01/93SEC ID: 949740BY9 TOTAL FIXED INCOME SECURITIES TOTAL ASSETS U.S. DOLLAR 100.3595 111.7815 109.3438 111.3750 113.1565 107.7815 100.2500 114.6870 107.3280 100.0000 TOTAL ASSETS -BASE: 5,800,000.000 20,000,000.000 16,310,000.000 3,427,530.000 14,631,110.000 57,100,000.000 12,000,000.000 3,000,000.000 3,500,000.000 450,000.000 310,778,013.900 425,469,608.750 425,469,608.750 14 Cost Base 1,046,310.00 6,251,984.38 22,620,312.50 14,382,973.87 3,738,499.05 16,264,178.79 62,782,901.47 11,870,156.25 3,530,490.00 3,487,680.00 467,496.00 324,464,255.92 418,459,887.13 418,459,887.13 Market Value Base 1,024,060.00 5,820,851.00 22,356,300.00 17,833,965.63 3,817,411.54 16,556,051.99 61,543,236.50 12,030,000.00 3,440,610.00 3,756,480.00 450,000.00 328,090,439.66 422,086,070.87 422,086,070.87 % of Total 0.24% 1.38% 5.30% 4.23% 0.90% 3.92% 14.58% 2.85% 0.82% 0.89% 0.11% 77.73% 100.00% 100.00% Net Unrealized Gain/Loss Base -22,250.00 -431,133.38 -264,012.50 3,450,991.76 78,912.49 291,873.20 -1,239,664.97 159,843.75 -89,880.00 268,800.00 -17,496.00 3,626,183.74 3,626,183.74 3,626,183.74 Workbench Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 10/1/2003 -10/31/2003 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base PURCHASES CASH & CASH EQUIVALENTS U.S. DOLLAR B FEDERAL HOME LN BK CONS DISC N MAT 10/29/2003 99.9214 1,600,000.000 1,598,743.11 -1,598,743.11 0.00 ll/26/2003SEC ID: 313384PTOBROKER: 10/29/2003 LEHMAN GOVf SECS INC, NYOCSF07511102: 1012912003 LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISCSEC ID: 10/23/2003 99.6879 1,400,000.000 1,395,630.83 -1,395,630.83 0.00 313384SS9BROKER: LEHMAN GOVf SECS 10/23/2003 INC, NYOCSF07511102: LIQUID OPER-PIMCO 1012312003 B FEDERAL HOME LN BK CONS DISC MAT 10/2/2003 99.6136 600,000.000 597,681.67 -597,681.67 0.00 02/09/2004SEC ID: 3 13384SWOBROKER: 10/2/2003 LEI'l:MAN GOVf SECS INC. NYOCSF075ll 102: 101212003 UQUID OPER,P.IMCO B FEDERAL HOME LN MTG CORP DISC MAT 10/16/2003 99.7308 20,800,000.000 20,744,004.66 -20, 744,004.66 0.00 01/15/2004SEC ID: 313396RV7BROKER: 10/16/2003 BANC OF AMERICA SEC LLC, SAN 10/16/2003 FRANCISCOOCSF07522202: LONG TERM B ltE~i~R2JME LN MTG CORP DISC MAT 10/29/2003 99.7266 1,200,000.000 1,196,718.67 -1, 196,718.67 0.00 0l/29/2004SEC ID: 313396SK0BROKER: 10/29/2003 MORGAN STANLEY & CO INC, NYOCSF07522202: LONGTI~RM OPER-PIMCO l0/29/2003 B FEDERAL HOME LN MTG CORP DISC MAT 10/10/2003 99.6614 4,700,000.000 4,684,085.28 -4,684,085.28 0.00 02/02/2004SEC ID: 313396SP9BROKER: 10/10/2003 CHASE SECURITIES, NEW 10/10/2003 YORKOCSF07522202: LONG TERM OPER- B ~ HOME LN MTG CORP DISCSEC ID: 10/24/2003 99.6476 4,000,000.000 3,985,905.56 -3,985,905.56 0.00 313396TG8BROKER: MORGAN STANLEY & 10/24/2003 CO INC, NYOCSF07522202: LONG TERM 10/24/2003 OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 10/20/2003 99.5899 6,500,000.000 6,473,344.58 -6,473,344.58 0.00 03/0l/2004SEC ID: 3133961TOBROKER: 10/20/2003 LEHMAN GOVf SECS INC, NYOCSF07522202: l0/2012003 LONG TERM OPER-PIMCO B UNITED STATES TREASURY BILL DUE 10/20/2003 99.4870 17,000,000.000 16,912,790.02 -16,912, 790.02 0.00 04/22/2004 DD 10/23/03SEC ID: 10/23/2003 912795PV7BROKER: GOLDMAN SACHS & 10/20/2003 CO, NYOCSF07522202: LONG TERM OPER- PIMCO 1 Workbench [ =o:OUDAllID -OC-10000 Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD 10/1/2003 -10/31/2003 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B US TREASURY BILL DUE 04/29/2004 DD 10/27/2003 99.4843 12,000,000.000 11,938,120.00 -11,938, 120.00 0.00 10/30/2003SEC ID: 912795PW5BROKER: 10/30/2003 UBS SECURITIES LLC, NEW 10/27/2003 YORKOCSF07522202: LONG TERM OPER- B f~ CAT 2 REPO 01.030% 10/16/2003 10/15/2003 100.0000 25,800,000.000 25,800,000.00 -25,800,000.00 0.00 DD 10/15/03SEC ID: 99411L512BROKER: 10/15/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l0/ 1512003 LONG TERM OPER-PIMCO B LEHMAN CAT 2 REPO 01.000% 10/17/2003 10/16/2003 100.0000 5,000,000.000 5,000,000.00 -5,000,000.00 0.00 DD 10/16/03SEC ID: 99411N252BROKER: 10/16/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l0/l6/2003 LONG TERM OPER-PIMCO B LEHMAN CAT 2 REPO 00.940% 10/20/2003 10/17/2003 100.0000 6,400,000.000 6,400,000.00 -6,400,000.00 0.00 DD 10/17/03SEC ID: 99411P760BROKER: 10/17/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l0/ 1712003 LONG TERM OPER-PIMCO B DREYFUS TREASURY CASH MGMTSEC ID: 10/1/2003 1.0000 33,125.000 33,125.00 -33,125.00 0.00 996085247OCSF07511102: LIQUID OPER-10/1/2003 PIMCO 10/1/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 10/1/2003 1.0000 253,891.900 253,891.90 -253,891.90 0.00 996085247OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO 10/1/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 10/2/2003 1.0000 824.610 824.61 -824.61 0.00 996085247OCSF07522202: LONG TERM 10/2/2003 OPER-PIMCO 10/2/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 10/15/2003 1.0000 20,625.000 20,625.00 -20,625.00 0.00 996085247OCSF0751 l 102: LIQUID OPER-10/15/2003 PIMCO 10/15/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 10/15/2003 1.0000 1,272,075.030 1,272,075.03 -1,272,075.03 0.00 996085247OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO 10/15/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 10/16/2003 1.0000 100,217.000 100,217.00 -100,217.00 0.00 996085247OCSF07522202: LONG TERM 10/16/2003 OPER-PIMCO 10/16/2003 2 W-orkbench• I OCSD-CONSOLIDATED -OCSGOOOlOOOO Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD 10/1/2003 -10/31/2003 Status: FINAL i ---··----------- Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B DREYFUS TREASURY CASH MGMTSEC ID: 10/20/2003 1.0000 29,964.440 29,964.44 -29,964.44 0.00 996085247OCSF0751 l 102: LIQUID OPER-10/20/2003 PIMCO 10/20/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 10/20/2003 1.0000 131,323.810 131,323.81 -131,323.81 0.00 99608524 7OCSF07522202: WNG TERM 10/20/2003 OPER-PIMCO 10/20/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 10/22/2003 1.0000 38,157.750 38,157.75 -38,157.75 0.00 996085247OCSF07522202: WNG TERM 10/22/2003 OPER-PIMCO 10/22/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 10/23/2003 1.0000 5,605.840 5,605.84 -5,605.84 0.00 996085247OCSF07511102: LIQUID OPER-10/23/2003 PIMCO 10/23/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 10/23/2003 1.0000 54,763.620 54,763.62 -54,763.62 0.00 996085247OCSF07522202: WNG TERM 10/23/2003 OPER-PIMCO 10/23/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 10/27/2003 1.0000 1,187,576.090 1,187,576.09 -1, 187,576.09 0.00 996085247OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO 10/27/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 10/30/2003 1.0000 99,633.190 99,633.19 -99,633.19 0.00 99608524 7OCSF075 l l l 02: LIQUID OPER-10/30/2003 PIMCO 10/30/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 10/30/2003 1.0000 72,759.880 72,759.88 -72,759.88 0.00 996085247OCSF07522202: WNG TERM 10/30/2003 OPER-PIMCO 10/30/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 10/31/2003 1.0000 6,647.650 6,647.65 -6,647.65 0.00 99608524 7OCSF07522202: WNG TERM 10/31/2003 OPER-PIMCO 10/31/2003 B BSDT-IATE MONEY DEPOSIT ACCTSEC ID: 10/21/2003 1.0000 38,157.750 38,157.75 -38,157.75 0.00 996087094OCSF07522202: WNG TERM 10/21/2003 OPER-PIMCO 10/21/2003 3 Workbench Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 10/1/2003 -10/31/2003 Status: FINAL ---···-· Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base TOTAL CASH & CASH EQUIVALENTS U.S. DOLLAR: 110,345,348.560 110,072,372.94 -110,072,372.94 0.00 TOTAL CASH & CASH EQUIVALENTS BASE: 110,345,348.560 110,072,372.94 -110,072,372.94 0.00 FIXED INCOME SECURITIES U.S.DOLLAR BC COMMIT TO PUR FNMA SF MTG 5.000% 9/12/2003 101.6875 -3,000,000.000 -3,050,625.00 3,050,625.00 0.00 10/01/2018 DD 10/0l/03SEC ID: 10/20/2003 0lF0504AlBROKER: BEAR STEARNS & CO 10/1/2003 INC, NYOCSF07522202: WNG TERM OPER- B ~IT TO PUR FNMA SF MTG 5.000% 9/12/2003 101.6875 3,000,000.000 3,050,625.00 -3,050,625.00 0.00 10/01/2018 DD 10/01/03SEC ID: 10/20/2003 0 lF0504AlBROKER: BEAR STEARNS & CO 10/1/2003 INC. NYOCSF07522202: LONG TERM OPER- BC ~ITTO PURFNMASFMTG 5.0000/4 9/15/2003 101.3750 -2,000,000.000 -2,027,500.00 2,027,500.00 0.00 10/01/2018 DD 10/01/03SEC ID: 10/20/2003 0lF0504AlBROKER: LEHMAN GOV!' SECS 10/1/2003 INC, NYOCSF07522202: WNG TERM OPER- BC ~IT TO PUR FNMA SF MTG 5.0000/4 9/15/2003 101.4063 -18,000,000.000 -18,253, 125.00 18,253,125.00 0.00 10/01/2018 DD 10/0l/03SEC ID: 10/20/2003 0 lF0504AlBROKER: CREDIT SUISSE FIRST 10/1/2003 BOSTON CORP, N YOCSF07522202: WNG B ~fB--ji'ffllCifNMA SF MTG 5.0000/o 9/15/2003 101.4063 18,000,000.000 18,253,125.00 -18,253, 125.00 0.00 10/01/2018 DD 10/01/03SEC ID: 10/20/2003 0lF0504AlBROKER: CREDIT SUISSE FIRST 10/1/2003 BOSTON CORP, N YOCSF07522202: WNG B ~fB-ji.M.<ifNMA SF MTG 5.0000/o 9/15/2003 101.3750 2,000,000.000 2,027,500.00 -2,027,500.00 0.00 10/01/2018 DD 10/0l/03SEC ID: 10/20/2003 0lF0504AlBROKER: LEHMAN GOV!' SECS 10/1/2003 INC, NYOCSF07522202: WNG TERM OPER- B ~IT TO PUR FNMA SF MTG 5.0000/o 10/14/2003 101.2813 18,000,000.000 18,230,625.00 -18,230,625.00 0.00 11/01/2018 DD ll/0l/02SEC ID: 11/18/2003 01F0504B9BROKER: CREDIT SUISSE FIRST 10/14/2003 BOSTON CORP, N YOCSF07522202: WNG B ~M--Ji'llrlG.9JMA SF MTG 5.0000/4 10/15/2003 101.1250 3,000,000.000 3,033,750.00 -3,033, 750.00 0.00 11/01/2018 DD ll/0l/02SEC ID: 11/18/2003 01F0504B9BROKER: BEAR STEARNS & CO 10/15/2003 INC, NYOCSF07522202: WNG TERM OPER- PIMCO 4 Workbench· Reported by Transaction Category C Transaction Detail SOLIDATED-OCSG000I0000 10/1/2003 -10/31/2003 Tran Trade Date Settle Date Reported Date Price Base Type Description Shares/Par B BC B B B 1B B 1B COMMITTOPURFNMASFMTG 5.000% 10/15/2003 101.1563 2.000,000.000 H/01/2018 DD Ll/01/02S.EC ID: 11/18/2003 OJ, F0504J39BROKER: LEHMAN GOVT SECS 1O/1512003 INC, NYOCSJ1'07522202: LONG TERM OPER- ~IT TO PURFNMA SF MTG 6.000% 9/11/2003 102.2500 -500,000.000 10/01/2033 DD 10/0l /03SEC ID: 10/15/2003 0 l.F0606A8BROKER: CITIGROUP GBL MIITS/SALOMON. NEWYORKOCSF07522202: l0/l/2003 ~1¥W-ffi'f\½f~Cgp MTG 6.000% 10/8/2003 102.4375 1,000,000.000 11/01/2033 DD 11 /0 l /03SEC ID: 11/13/2003 0 1F0606B6BROKEH: CREDIT SlJISSE FIRST l0/8/2003 BOSTON CORP. N YOCSF07522202: LONG ~~ii'-ffil~MA SF MTG 6.0000/o 10/9/2003 102.3281 500,000.000 11/01/2,033 DD ll/01/03SEC ID: 11/13/2003 0 J F060BB6BROl{ER: CHASE/GREENWICH CAP, NEW YORKOCSF'07522202: LONG TERM 10/9/2003 Q~~RICA CORP SR GBL NT 6.625% 10/8/2003 103.6770 500,000.000 06/15/2004DJ?06/15/99~ECID; . 10/10/2003 066050CW3BROKER: BANC OF' AM:ERICA l0/8/2003 SECLU::, SAN FRANCISCOOCSF0751 I 102: hl.~.fFoi?~m~'2:oRP SR GBL NT 6.625% 10/8/2003 103.6770 0.000 06/15/2004 DD 06/15/99Sec ID: 10/10/2003 066050CW3BRORER: BANC OF AMERTCA l0/8/2003 SEC LLC. SAN FRANCISCOOCSF07511102: ~D <?>00t-W'35tio9 6.0000/o 9/11/2003 102.2500 499,999.880 05/01/2031 DD 04/01/0lSEC ID: 10/15/2003 31384W1\W9BROI{ER: cmGROUP GBL MTCTS/SALOMON. NEW YORKOCSF07522202: lO/l/2003 ~~T~f?i~KM'd~<:t.000010 9/11/2003 102.2500 0.000 05/01/203'1 DD 04/01/0lSEC ID: 10/15/2003 31384WKW9BROKER; CITJGROUP GBL . . MKTS/SALOMON, NEWYORI<OCSF07522202: lO/l/2003 LONGTERM c'fmM>IifflD INCOME SECURITIES U.S. DOLLAR: 24,999,999.880 TOTAL FIXED INCOME SECURITIES BASE: 24,999,999.880 TOTAL PURCHASES BASE: 135,345,348.440 PAY UPS FIXED INCOME SECURITIES 5 Cost Base 2.023,125.00 -511,250.00 1,024,375.00 511,640.63 518,385.00 0.00 511,249.88 0.00 25,341,900.51 25,341,900.51 135,414,273.45 ., Report ID: EWB009 Base Currency: USD Status: FINAL Amount Base -2,023.125.00 511,250.00 -1,024,375.00 -511,640.63 -518,385.00 -10,581.60 -511,249.88 -1,166.67 -25,353,648. 78 -25,353,648. 78 -135,426,021. 72 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Workbench OCSD-CONSOUDATED -OCSG000lO000 Transaction Detail Reported by Transaction Category 10/1/2003 -10/31/2003 Tran Trade Date Settle Date Reported Date Type Description U.S.DOLLAR PU PU PU PU PU SALES FHLMC MULTICIASS MTG SER E3 A VAR Rf 10/1/2003 08/15/2032 DD 12/01/97SEC ID: 10/1/2003 3133TCE95OCSF07522202: LONG TERM OPER-PfMCO 10/1/2003 FHLMC MULTICIASS CTF SER 16202 6.000% 10/1/2003 11/15/2023 DD ll/01/93SEC ID: 10/1/2003 3133Tl 7 A4OCSF07522202: LONG TERM OPER-PJMCO 10/1/2003 US TREASURY INFIATION INDEX NT 3.375% 7/15/2003 01/15/2007 DD 0l/l5/97SEC ID: 7/15/2003 9128272M3OCSF'07522202: LONG TERM OPER-PIMCO 10/1/2003 US TREASURY INFIATION INDEX NT 3.625% 7/15/2003 01/15/2008DD 0l/15/98SEC ID: 7/15/2003 9128273T7OCSF07522202: LONG TERM OPER-PtMCO 10/1/2003 US TREASURY INFIATION INDEX NT 3.875% 7/15/2003 01/15/2009 DD 01/ 15/99SEC ID: 7/15/2003 912S274Y5OCSF07522202: LONG TERM OPER-PIMCO 10/1/2003 TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: TOTAL FIXED INCOME SECURITIES BASE: TOTAL PAY UPS BASE: CASH & CASH EQUIVALENTS U.S.DOLLAR s IS FEDERAL HOME LN BK CONS DISC N MAT 10/24/2003SEC ID: 313384NJ4BROIIBR: CITIGROUP GBL MKTS/SALOMON, NEW YORKOCSF075 l l 102: LIQUID OPER-PIMCO FEDERAL HOME LN BK CONS DISC N MAT 10/24/2003SEC ID: 313384NJ4BROKER: CITIGROUP GBL MKTS/SALOMON, NEW YORKOCSF07511102: LIQUID OPER-PIMCO 10/10/2003 10/10/2003 10/10/2003 10/10/2003 10/10/2003 10/10/2003 Price Base 100.0000 100.0000 100.0000 100.0000 100.0000 99.5320 99.5320 6 Shares/Par 3.100 14,861.040 60,480.000 12,720.000 54,210.000 142,274.140 142,274.140 142,274.140 -500,000.000 0.000 Cost Base 3.10 14.861.04 60,480.00 12,720.00 54,210.00 142,274.14 142,274.14 142,274.14 -497,660.00 0.00 Report ID: EWB009 Base Currency: USD Status: FINAL Amount Base -3.10 -14,861.04 -60,480.00 -12,720.00 -54,210.00 -142,274.14 -142,274.14 -142,274.14 497,660.00 2.252.50 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 W-orkbench, C Sl>CONSOLIDATED -OCSGOO0IO000 Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD 10/1/2003 -10/31/2003 Status: FINAL ·-··-···-·- Trade Date Tran Settle Date Price Cost Alnount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base s FEDERAL HOME LN BKS CINS DISC MAT 10/20/2003 99.4595 -3,400,000.000 -3,381,623.47 3,381,623.47 0.00 03/17 /2004SEC ID: 313384UK3BROKER: 10/23/2003 BANC OF AMERICA SEC LLC, SAN 10/20/2003 FRANCISCOOCSF07522202: LONG TERM IS ~§irfAt1RdME LN BKS CINS DISC MAT 10/20/2003 99.4595 0.000 0.00 3,484.53 0.00 03/17 /2004SEC ID: 313384UK3BROKER: 10/23/2003 BANC OF AMERICA SEC LLC, SAN 10/20/2003 FRANCISCOOCSF07522202: LONG TERM s ~8irfAt100ME LN BKS CINS DISC MAT 10/29/2003 99.4625 -100,000.000 -99,462.50 99,462.50 0.00 03 / 17 /2004SEC ID: 313384UK3BROKER: 10/30/2003 BANC OF AMERICA SEC LLC, SAN 10/29/2003 FRANCISCOOCSF07511102: LIQUID OPER- IS ~ HOME LN BKS CINS DISC MAT 10/29/2003 99.4625 0.000 0.00 170.69 0.00 03 / 17 /2004SEC ID: 313384UK3BROKER: 10/30/2003 BANC OF AMERICA SEC LLC, SAN 10/29/2003 FRANCISCOOCSF07511102: LIQUID OPER- s i~ HOME LN BKS CONS DISC MAT 10/20/2003 99.4616 -6, 700,000.000 -6,663,926.08 6,663,926.08 0.00 03/19/2004SEC ID: 313384UM9BROKER: 10/23/2003 BANC OF AMERICA SEC LLC, SAN '10/20/2003 FRANCISCOOCSF07522202: LONG TERM JS W§iifAMH'aME LN BKS CONS DISC MAT 10/20/2003 99.4616 0.000 0.00 6,325.92 0.00 03/19/2004SEC ID: 313384UM9BROKER: 10/23/2003 BANC OF AMERICA SEC LLC, SAN 10/20/2003 FRANCISCOOCSF07522202: LONG TERM s PE8~~00ME LN MTG CORP DISCSEC ID: 10/27/2003 99.6476 -4,000,000.000 -3,985,905.56 3,985,905.56 0.00 313396TG8BROKER: UBS SECURITIES LLC, 10/30/2003 NEW YORKOCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IS FEDERAL HOME LN MTG CORP DISCSEC ID: 10/27/2003 99.6476 0.000 0.00 778.88 0.00 313396TG8BROKER: UBS SECURITIES LLC, 10/30/2003 NEW YORKOCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO s FEDERAL HOME LN MTG CORP DISC MAT 10/27/2003 99.5899 -6,500,000.000 -6,4 73,344.58 6,473,344.58 0.00 03/0l/2004SEC ID: 3133961TOBROKER: 10/30/2003 UBS SECURITIES LLC, NEW 10/27/2003 YORKOCSF07522202: LONG TERM OPER- IS ~ HOME LN MTG CORP DISC MAT 10/27/2003 99.5899 0.000 0.00 2,559.38 0.00 03/01/2004SEC ID: 313396TTOBROIIBR: 10/30/2003 UBS SECURITIES LLC. NEW 10/27/2003 YORKOCSF07522202: LONG TERM OPER- PIMCO 7 Workbench -:] Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 10/1/2003 -10/31/2003 Status: FINAL -,., ___ ,..,, ___ , --- Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base s FEDERAL NATL MTG ASSN DISCOUNT MAT 10/20/2003 99.5530 -400,000.000 -398,212.00 398,212.00 0.00 02/19/2004SEC ID: 313588TG0BROKER: 10/23/2003 UBS SECURITIES LLC, NEW 10/20/2003 YORKOCSF07522202: LONG TERM OPER- IS f~ NATL MTG ASSN DISCOUNT MAT 10/20/2003 99.5530 0.000 0.00 353.39 0.00 02/19/2004SEC ID: 313588TG0BROKER: 10/23/2003 UBS SECURITIES LLC, NEW 10/20/2003 YORKOCSF07522202: LONG TERM OPER- s ~IW'~ NATL MTG ASSN DISCOUNT MAT 10/27/2003 99.5530 -900,000.000 -895,977.00 895,977.00 0.00 02/19/2004SEC ID: 313588TG0BROKER: 10/30/2003 UBS SECURITIES LLC, NEW 10/27/2003 YORKOCSF07522202: LONG TERM OPER- IS ~ NATL MTG ASSN DISCOUNT MAT 10/27/2003 99.5530 0.000 0.00 1,027.00 0.00 02/19/2004SEC ID: 313588TG0BROKER: 10/30/2003 UBS SECURITIES LLC, NEW 10/27/2003 YORKOCSF07522202: LONG TERM OPER- s ~ NATL MTG ASSN DISCUNT MAT 10/20/2003 99.5500 -500,000.000 -497, 750.00 497,750.00 0.00 02/23/2004SEC ID: 313588TL9BROKER: 10/23/2003 LEHMAN Govr SECS INC, NYOCSF07522202: 0/ 0/2003 LONG TERM OPER-PIMCO l 2 IS FEDERAL NATL MTG ASSN DISCUNT MAT 10/20/2003 99.5500 0.000 0.00 389.63 0.00 02/23/2004SEC ID: 313588TL9BROKER: 10/23/2003 LEHMAN GOVf SECS INC, NYOCSF07522202: l0/2012003 LONG TERM OPER-PIMCO s FEDERAL NATL MTG ASSN DISCOUNT MAT 10/20/2003 99.5560 -1,800,000.000 -1,792,008.00 1. 792,008.00 0.00 02/24/2004SECID:313588TM7BROKER: 10/23/2003 LEHMAN GOVf SECS INC. NYOCSF07522202: 012012003 LONG TERM OPER-PIMCO l IS FEDERAL NATL MTG ASSN DISCOUNT MAT 10/20/2003 99.5560 0.000 0.00 1,240.20 0.00 02/24/2004SEC ID: 313588TM7BROKER: 10/23/2003 LEHMAN GOVf SECS INC, NYOCSF07522202: 1012012003 LONG TERM OPER-PIMCO s FEDERAL NATL MTG ASSN DISCOUNT MAT 10/20/2003 99.4415 -1,800,000.000 -1,789,946.75 1,789,946.75 0.00 02/25/2004SEC ID: 313588TN5BROKER: 10/23/2003 UBS SECURITIES LLC, NEW 10/20/2003 YORKOCSF07522202: LONG TERM OPER- IS ~ NATL MTG ASSN DISCOUNT MAT 10/20/2003 99.4415 0.000 0.00 3,240.75 0.00 02/25/2004SEC ID: 313588TN5BROKER: 10/23/2003 UBS SECURITIES LLC, NEW 10/20/2003 YORKOCSF07522202: LONG TERM OPER- PIMCO 8 Workbench· Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000I0000 10/1/2003 -10/31/2003 Status: FINAL - Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base s FEDERAL NATL MTG ASSN DISCSEC ID: 10/20/2003 99.4540 -2,400,000.000 -2,386,896.00 2,386,896.00 0.00 3 l3588ill{9BROKER: BANC OF AMERICA SEC 10/23/2003 LLC, SAN FRANCISCOOCSF07522202: LONG l0/2012003 TERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCSEC ID: 10/20/2003 99.4540 0.000 0.00 2,251.33 0.00 313588UK9BROKER: BANC OF AMERICA SEC 10/23/2003 1:LC. SAN FRANC1SCOOCSF'07522202: LONG 10/20/2003 TERM OPER-PTMCO s FEDERAL NATL MTG ASSN DISCSEC ID: 10/27/2003 99.4540 -600,000.000 -596, 724.00 596,724.00 0.00 313588UK9BROKER: CHASE SECURITIES, 10/30/2003 NEW YORKOCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCSEC ID: 10/27/2003 99.4540 0.000 0.00 729.98 0.00 313588Ul{98ROIIBR: CHASE SECURITIES, 10/30/2003 NEWYORKOCSF07522202: LONG TERM 10/27/2003 OPE-R-PTMCO s LEHMAN CAT 2 REPO 01.030% 10/16/2003 10/16/2003 100.0000 -25,800,000.000 -25,800,000.00 25,800,000.00 0.00 DD 10/15/03SEC ID: 99411L512BROKER: 10/16/2003 LBHMAN covr SECS INC, NYOCSF075222.02: 10/16/2003 LONG TERM OPE:R-PIMCO IS LEHMAN CAT 2 REPO 01.030% 10/16/2003 10/16/2003 100.0000 0.000 0.00 738.17 0.00 DD 10/15/03SEC ID: 99411.L512BROKFJR: 10/16/2003 LEHMAN GOVTSECSJNC, NYOCSF0752.2202: l0/l6/2003 LONG TERl\ll OPER,-PlMCO s LEHMAN CAT 2 REPO 01.000% 10/17/2003 10/17/2003 100.0000 -5,000,000.000 -5,000,000.00 5,000,000.00 0.00 DD 10/ 16/03SEC ID: 994.11N252BROKER: 10/17/2003 LEHMAN GOVT SE-CS TNC. NYOCSF07522202: 1O/1712003 LONG TERM OPER-PIMCO IS LEHMAN CAT 2 REPO O 1.000% 10/17/2003 10/17/2003 100.0000 0.000 0.00 138.89 0.00 DD 10/16/03SEC ID:994l1N252BROKER: 10/17/2003 LEHMAN GOVf SECS INC. NYOCSF07522202: lO/l 712003 LONG TERM OPER-PIMCO s LEHMAN CAT 2 REPO 00.940% 10/20/2003 10/20/2003 100.0000 -6,400,000.000 -6,400,000.00 6,400,000.00 0.00 DD 10/17/03SEC ID: 9941 lP760BROKER: 10/20/2003 LEHMAN GOVT SECS INC. NYOCSF07522202: 1012012003 LONG IBRM OPER-PTIVICO IS LEHMAN CAT 2 REPO 00.940% 10/20/2003 10/20/2003 100.0000 0.000 0.00 501.33 0.00 DD 10/17 /03SEC ID: 99411P760BRDKER: 10/20/2003 LEHMAN GOVf SECS INC, 'NYOCSF07522202: l0/2012003 LONG TERM OP~R-PIMCO 9 Workbench OCSD-CONSOLIDATED -OCSG000l0000 Transaction Detail Reported by Transaction Category 10/1/2003 -10/31/2003 s s s s s s s s s Tran Type Description Trade Date Settle Date Reported Date DREYFUS TREASURY CASH MGMTSEC ID: 996085247OCSF0751 l 102: LIQUID OPER- PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 996085247OCSF07522202: LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 996085247OCSF07522202: LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 996085247OCSF07511102: LIQUID OPER- PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 996085247OCSF07522202: LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 996085247OCSF07522202: LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 996085247OCSF0751 l 102: LIQUID OPER- PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 996085247OCSF07522202: LONG TERM OPER-PIMCO BSDT-LATE MONEY DEPOSIT ACCTSEC ID: 996087094OCSF07522202: LONG TERM OP!!;R-PIMCO 10/2/2003 10/2/2003 10/2/2003 10/6/2003 10/6/2003 10/6/2003 10/10/2003 10/10/2003 10/10/2003 10/10/2003 10/10/2003 10/10/2003 10/17/2003 10/17/2003 10/17/2003 10/24/2003 10/24/2003 10/24/2003 10/29/2003 10/29/2003 10/29/2003 10/29/2003 10/29/2003 10/29/2003 10/22/2003 10/22/2003 10/22/2003 TOTAL CASH&: CASH EQUIVALENTS U.S. DOLLAR: TOTAL CASH&: CASH EQUIVALENTS BASE: Price Base 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Shares/Par -33,495.500 -6,444.360 -284,085.280 -29,054.100 -1,399,861.110 -185,905.560 -98,743.110 -1, 196,718.670 -38,157.750 -70,072,465.440 -70,072,465.440 10 Cost Base -33,495.50 -6,444.36 -284,085.28 -29,054.10 -1,399,861.11 -185,905.56 -98,743.11 -1.196,718.67 -38,157.75 -69,931,901.38 -69,931,901.38 Report ID: EWB009 J Base Currency: USD Status: FINAL Amount Base 33,495.50 6,444.36 284,085.28 29,054.10 1,399,861.11 185,905.56 98,743.11 1,196,718.67 38,157.75 69,958,083.95 69,958,083.95 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 \Vorkbench· Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000IO000 10/1/2003 -10/31/2003 Status: FINAL ~--- Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base FIXED INCOME SECURITIES U.S. DOLLAR s COMMIT TO PUR FNMA SF MTG 5.000% 10/14/2003 101.5859 -18,000,000.000 -18,259,239.13 18,285,468.75 26,229.62 10/0J/2018 DD 10/01/03SEC ID: 10/20/2003 0 l F0504AlBROI<:ER: CREDIT SUISSE FIRST 10/14/2003 BOSTON CORP, N YOCSF07522202: LONG s ~fflii'lMCiR.iMA SF MTG 5.000% 10/15/2003 101.4297 -3,000,000.000 -3,043,206.52 3,042,890.63 -315.89 10/01/2018 DD 10/01 /03SEC ID: 10/20/2003 0lF0504AlBROKER: BEAR STEARNS & CO 10/15/2003 INC. NYOCSF07522202: LONGTERM OPER- s ~ITTO PUR FNMA SF MTG 5.000% 10/15/2003 101.4609 -2,000,000.000 -2,028,804.35 2,029,218.75 414.40 10/01/2018 DD 10/0l/03SECID: 10/20/2003 0 lF0504AlBROf<E;R: LEHMAN GOVT SECS 10/15/2003 INC. NYOCSF07522202: LONG TE.RM OPER- s ~IT TO PUR FNMA SF MTG 6.000% 10/8/2003 102.7539 -1,000,000.000 -1,023,125.00 1,027,539.06 4,414.06 10/01/2033 DD 10/0l/03SEC ID: 10/15/2003 0 l F0606A88ROKER: CREDIT SUISSE FIRST 10/8/2003 BOSTON CORP. N YOCSF07522202: LONG s ~~ O~f'.~§15909 6.000% 10/9/2003 102.6406 -499,999.880 -511,249.88 513,203.00 1,953.12 05/01/2031 DD 04;/01/0lSEC ID: 10/15/2003 3 L384WI<W9BROKER: CHASE/GREENWICH CAP, NEWYORKOCSF07522202: LONG 'l'ERM l0/9/2003 IS ~~Plt45&, #0535909 6.000% 10/9/2003 102.6406 0.000 0.00 1,166.67 0.00 05/01/2031 DD 0-1,/01/01 SEC ID: 10/15/2003 31384WKW9BROKER:CHASE/GREENWICH CAP, NEW YORKOCSF07522202: LONG TERM l O /9 /2003 OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: -24,499,999.880 -24,865,624.88 24,899,486.86 32,695.31 TOTAL FIXED INCOME SECURITIES BASE: -24,499,999.880 -24,865,624.88 24,899,486.86 32,695.31 TOTAL SALES BASE: -94,572,465.320 -94, 797,526.26 94,857,570.81 32,695.31 PRINCIPAL PAYMENTS FIXED INCO:ME SECURITIES U.S. DOLLAR PD WMP/HUNTOON PAIGE #000-11150 7.5000/o 10/1/2003 100.0000 -758.860 -742.38 758.86 16.48 12/01/2030 DD 10/21/99SEC ID: 10/1/2003 302998GE3OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO 11 Workbench Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000lO000 10/1/2003 -10/31/2003 Status: FINAL --- Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base PD FHLMC GROUP #G4-0353 7.500% 10/1/2003 100.0000 -12,179.770 -12,488.07 12,179.77 -308.30 10/01/2004 DD 03/0l/99SEC ID: 10/1/2003 3128DBMA2OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PDC FHLMC MULTI CLASS MTG SER E3 AV AR Rr 9/1/2003 100.0000 38,163.500 38,204.16 -38, 163.50 40.66 08/15/2032 DD 12/0 l /97SEC ID: 9/1/2003 3133TCE95OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FHLMC MULTI CLASS MTG SER E3 AV AR Rr 9/1/2003 100.0000 -38, 166.600 -38,207.26 38,166.60 -40.66 08/16/2032 DD 12/0l/97SEC ID: 9/1/2003 3133TCE95OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FHLMC MULTICLASS MTG SER E3 A VAR Rf 10/1/2003 100.0000 -35,504.400 -35,542.23 35,504.40 -37.83 08/15/2032 DD 12/0l/97SEC ID: 10/1/2003 3 l33TCE95OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FHLMC GROUP #78-6064 6.384% 10/1/2003 100.0000 -3,388.490 -3,305.90 3,388.49 82.59 01/01/2028 DD 12/01/97SEC ID: 10/1/2003 31348SWZ3OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0254510 5.000% 10/1/2003 100.0000 -20,618.240 -21,236.79 20,618.24 -618.55 11/01/2017 DD 10/0l/02SEC ID: 10/1/2003 31371 KVB4OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0254631 5.000% 10/1/2003 100.0000 -3,468.360 -3,572.41 3,468.36 -104.05 02/01/2018 DD 0l/0l/03SEC ID: 10/1/2003 3137 lKY 4 7OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0254760 5.000% 10/1/2003 100.0000 -3,014.220 -3,104.65 3,014.22 -90.43 06/01/2018 DD 05/0l/03SEC ID: 10/1/2003 31371K5V9OCSF07522202: WNGTERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0254866 5.000% 10/1/2003 100.0000 -449.490 -462.97 449.49 -13.48 09/01/2018 DD 08/0l/03SEC ID: 10/1/2003 31371LCB3OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0323980 6.000% 10/1/2003 100.0000 -14,591.550 -15,234.49 14,591.55 -642.94 04/01/2014 DD 09/01/99SEC ID: 10/1/2003 31374T2M0OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO 12 Workbench· Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 10/1/2003 -10/31/2003 Status: FINAL -- Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base PD FNMA POOL #0357328 5.000% 10/1/2003 100.0000 -2,167.380 -2,232.40 2,167.38 -65.02 01/01/2018 DD 0l/0l/03SEC ID: 10/1/2003 31376J4M8OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0456482 6.000% 10/1/2003 100.0000 -4,654.430 -4,859.52 4,654.43 -205.09 02/01/2014 DD 02/0l/99SEC ID: 10/1/2003 31381CCT2OCSF07522202: LONGTERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0509649 6.000% 10/1/2003 100.0000 -1,798.890 -1,878.15 1,798.89 -79.26 09/01/2014 DD 09/0l/99SEC ID: 10/1/2003 31383QEW0OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0535451 6.000% 10/1/2003 100.0000 -12,094.560 -12,627.48 12,094.56 -532.92 06/01/2015 DD 07 /01/00SEC ID: 10/1/2003 31384VZQ8OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0535672 6.000% 10/1/2003 100.0000 -281,082.300 -293,467.49 281,082.30 -12,385.19 01/01/2016 DD 12/01/00SEC ID: 10/1/2003 31384WCH10CSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0545296 6.000% 10/1/2003 100.0000 -106, 784. 780 -111,489.98 106,784.78 -4,705.20 11/01/2016 DD 10/01/0lSEC ID: 10/1/2003 31385HXZ0OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0545580 6.000% 10/1/2003 100.0000 -8,644.220 -9,025.11 8,644.22 -380.89 03/01/2017 DD 03/0l/02SEC ID: 10/1/2003 31385JCR7OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0545998 6.000% 10/1/2003 100.0000 -14,853.930 -15,448.09 14,853.93 -594.16 11/01/2032 DD 10/0l/02SEC ID: 10/1/2003 31385JRf7OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0555101 6.000% 10/1/2003 100.0000 -12, 706.170 -13,266.04 12,706.17 -559.87 10/01/2017 DD l l/Ol/02SEC ID: 10/1/2003 31385WU23OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0555285 6.000% 10/1/2003 100.0000 -48,628.570 -50,573.71 48,628.57 -1,945.14 03/01/2033 DD 02/0l/03SEC ID: 10/1/2003 31385W2S7OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO 13 Workbench OCSD-CONSOLIDATED -OCSG000l0000 Transaction Detail Reported by Transaction Category 10/1/2003 -10/31/2003 Tran Trade Date Settle Date Reported Date Type Description PD PD PD PD PD PD PD PD PD PD FNMA POOL #0555363 5.000% 04/01/2018 DD 03/01/03SEC ID: 31385W5YlOCSF07522202: LONG TERM OPER-PIMCO FNMA POOL #0555528 6.000% 04/01/2033 DD 05/0l/03SEC ID: 31385XD95OCSF07522202: LONG TERM OPER-PIMCO FNMA POOL #0555545 5.0000/o 06/01/2018 DD 05/01/03SEC ID: 31385XES2OCSF07522202: LONG TERM OPER-PIMCO FNMA POOL #0555640 6.000% 07/01/2033 DD 06/0l/03SEC ID: 31385XHR1 OCSF07522202: LONG TERM OPER-PIMCO FNMA POOL #0576386 6.0000/o 05/01/2016 DD 05/01/0lSEC ID: 31386XJ72OCSF07522202: LONG TERM OPER-PIMCO FNMA POOL #0576739 6.0000/o 04/01/2016 DD 04/01/0lSEC ID: 31386.XV86OCSF07522202: LONG TERM OPER-PIMCO FNMA POOL #0580888 6.000% 05/01/2016 DD 05/01/0lSEC ID: 31387DJ91OCSF07522202: LONG TERM OPER-PIMCO FNMA POOL #0594002 6.0000/o 07/01/2016 DD 07 /01/0lSEC ID: 31387T3K8OCSF07522202: LONG TERM OPER-PIMCO FNMA POOL #0597376 6.0000/o 09/01/2016 DD 08/01/0lSEC ID: 31387XT96OCSF07522202: LONG TERM OPER-PIMCO FNMA POOL #0605259 6.0000/o 09/01/2016 DD 09/01/0lSEC ID: 31388HMG10CSF07522202: LONG TERM OPER-PIMCO 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 Price Base 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 14 Shares/Par -6.891.340 -58,016.210 -8,412.440 -55,487.360 -10,254.710 -31,590.180 -13,153.040 -16,455.730 -1,531.980 -1,394.400 Cost Base -7,098.08 -60,336.86 -8,664.81 -57,706.85 -10,706.56 -32,982.12 -13,732.60 -17,180.81 -1,599.48 -1,455.84 Report ID: EWB009 ~ -··-" Base Currency: USD Status: FINAL ··-.. -···-·-· Amount Base Net Gain/Loss Base 6,891.34 -206.74 58.016.21 -2,320.65 8,412.44 -252.37 55,487.36 -2,219.49 10,254.71 -451.85 31,590.18 -1,391.94 13,153.04 -579.56 16,455.73 -725.08 1,531.98 -67.50 1,394.40 -61.44 Workbench· Transaction Detail Report ID: EWB009 l Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 10/1/2003 -10/31/2003 Status: FINAL I Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base PD FNMA POOL #0608366 6.000% 10/1/2003 100.0000 -38,429.060 -40,122.34 38,429.06 -1,693.28 10/01/2016 DD 09/01/0lSEC ID: 10/1/2003 31388LZ78OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0616734 6.000% 10/1/2003 100.0000 -698.960 -729.76 698.96 -30.80 12/01/2016 DD 12/01/0lSEC ID: 10/1/2003 31388WEF9OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0630812 6.000% 10/1/2003 100.0000 -948.750 -990.55 948.75 -41.80 02/01/2017 DD 02/0l/02SEC ID: 10/1/2003 31389NYH2OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0632376 6.000% 10/1/2003 100.0000 -57,826.350 -60,374.32 57,826.35 -2,547.97 07/01/2017 DD 07 /0l/02SEC ID: 10/1/2003 31389QQ50OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0653116 6.000% 10/1/2003 100.0000 -37,107.500 -38,742.55 37,107.50 -1,635.05 07/01/2017 DD 07 /0l/02SEC ID: 10/1/2003 31390QSD8OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0673280 6.000% 10/1/2003 100.0000 -26,673.840 -27,849.16 26,673.84 -1,175.32 08/01/2017 DD ll/0l/02SEC ID: 10/1/2003 31391P6R2OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0681309 5.0000/o 10/1/2003 100.0000 -13,987.770 -14,407.40 13,987.77 -419.63 02/01/2018 DD 02/0l/03SEC ID: 10/1/2003 31391Y3S4OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0681334 5.000% 10/1/2003 100.0000 -1,467.530 -1,511.56 1,467.53 -44.03 02/01/2018 DD 0l/0l/03SEC ID: 10/1/2003 31391 Y 4TlOCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0685665 5.000% 10/1/2003 100.0000 -842.640 -867.92 842.64 -25.28 02/01/2018 DD 02/0l/03SEC ID: 10/1/2003 31400EW22OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0686318 5.000% 10/1/2003 100.0000 -2,468.930 -2,543.00 2,468.93 -74.07 03/01/2018 DD 03/0l/03SEC ID: 10/1/2003 3 l 400FPB7OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO 15 Workbench L LIDATED-OCSGOOOlOOOO - Transaction Detail ~~rtm,~ Reported by Transaction Category Base Cunency: USD 10/1/2003 -10/31/2003 Status: FINAL -·--- Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base PD FNMA POOL #0688739 5.000%, 10/1/2003 100.0000 -4.661.190 -4,801.03 4,661.19 -139.84 06/01/2018 DD 06/01/03SEC ID: 10/1/2003 31400JEL9OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0693834 5.000% 10/1/2003 100.0000 -7,491.660 -7,716.41 7,491.66 -224.75 03/01/2018 DD 03/0l/03SEC ID: 10/1/2003 31400PY74OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0695852 5.000% 10/1/2003 100.0000 -8,154.900 -8,399.55 8,154.90 -244.65 05/01/2018 DD 05/0l/03SEC ID: 10/1/2003 31400SBV0OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0695889 5.000% 10/1/2003 100.0000 -13.434.520 -13,837.56 13,434.52 -403.04 05/01/2018 DD 05/0l/03SEC ID: 10/1/2003 31400SC23OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0697026 5.000% 10/1/2003 100.0000 -617.780 -636.31 617.78 -18.53 05/01/2018 DD 04/0l/03SEC ID: 10/1/2003 31400TLF2OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0698939 6.000% 10/1/2003 100.0000 -35,834.780 -37,413.75 35,834.78 -1,578.97 09/01/2017 DD 03/01/03SEC ID: 10/1/2003 31400VPY2OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0702210 5.000% 10/1/2003 100.0000 -6,284.820 -6,473.36 6,284.82 -188.54 05/01/2018 DD 05/0l/03SEC ID: 10/1/2003 31401ADP9OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0703195 6.000% 10/1/2003 100.0000 -838.910 -875.87 838.91 -36.96 01/01/2017 DD 04/0l/03SEC ID: 10/1/2003 31401BGC3OCSF07522202: LONGTERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0709148 5.000% 10/1/2003 100.0000 -5.060.960 -5,212.79 5,060.96 -151.83 06/01/2018 DD 06/0l/03SEC ID: 10/1/2003 31401HZM70CSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0710235 5.000% 10/1/2003 100.0000 -8,369.680 -8,620.77 8,369.68 -251.09 06/01/2018 DD 06/0l/03SEC ID: 10/1/2003 31401KBC8OCSF07522202: LONGTERM 10/1/2003 OPER-PIMCO 16 \¼Jrkbench, Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000lO000 10/1/2003 -10/31/2003 Status: FINAL ' ...... _ .. Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base PD FNMA POOL #0713344 5.000% 10/1/2003 100.0000 -679.890 -700.29 679.89 -20.40 06/01/2018 DD 06/0l/03SEC ID: 10/1/2003 31401NP52OCSF07522202: WNGTERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0720369 5.000% 9/1/2003 100.0000 -35, 738.920 -36,811.09 35,738.92 -1,072.17 06/01/2018 DD 06/01/03SEC ID: 9/1/2003 31401WJN0OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0720369 5.000% 9/1/2003 100.0000 -24,563.280 -25,300.18 24,563.28 -736.90 06/01/2018 DD 06/0l/03SEC ID: 9/1/2003 31401WJN0OCSF07522202: WNGTERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0720369 5.000% 10/1/2003 100.0000 -34,402.980 -35,435.07 34,402.98 -1,032.09 06/01/2018 DD 06/0l/03SEC ID: 10/1/2003 31401WJN0OCSF07522202: WNGTERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0720369 5.000% 10/1/2003 100.0000 -34,402.980 -35,435.07 34,402.98 -1,032.09 06/01/2018 DD 06/01/03SEC ID: 10/1/2003 31401 WJN0OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0720369 5.000% 10/1/2003 100.0000 -23,645.090 -24,354.44 23,645.09 -709.35 06/01/2018 DD 06/0l/03SEC ID: 10/1/2003 31401WJN0OCSF07522202: WNGTERM 10/1/2003 OPER-PIMCO PD FNMA POOL #0721629 5.000% 10/1/2003 100.0000 -3,004.810 -3,094.95 3,004.81 -90.14 07/01/2018 DD 06/0l/03SEC ID: 10/1/2003 31401XVW4OCSF07522202: WNGTERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0596612 6.500% 10/1/2003 100.0000 -53,215.070 -55,850.88 53,215.07 -2,635.81 09/15/2032 DD 09/0l/02SEC ID: 10/1/2003 36200BYH4OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0569358 6.500% 10/1/2003 100.0000 -108,269.640 -110,807.21 108,269.64 -2,537.57 04/15/2032 DD 04/01/02SEC ID: 10/1/2003 36200QQK3OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0569685 6.500% 10/1/2003 100.0000 -4,586.300 -4,813.47 4,586.30 -227.17 02/15/2032 DD 02/0l/02SEC ID: 10/1/2003 36200Q2S2OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO 17 Workbench Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000lOO00 10/1/2003 -10/31/2003 Status: FINAL ----· Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base PD GNMA POOL #0570019 6.500% 10/1/2003 100.0000 ·9,218.400 -9,675.00 9,218.40 -456.60 07/15/2032 DD 07 /01/02SEC ID: 10/1/2003 36200RG48OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0574323 6.500% 10/1/2003 100.0000 -73,675.050 -77,324.27 73,675.05 -3,649.22 12/15/2031 DD 12/01/0lSEC ID: 10/1/2003 36200WAY7OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0575364 6.500% 10/1/2003 100.0000 -5,626.330 -5,905.01 5,626.33 -278.68 11/15/2031 DD 11/01/0lSEC ID: 10/1/2003 36200XFD6OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0587117 6.500% 10/1/2003 100.0000 -2.663.100 -2,795.01 2,663.10 -131.91 06/15/2032 DD 06/0l/02SEC ID: 10/1/2003 36201MG220CSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0587439 6.500% 10/1/2003 100.0000 -5,293.210 -5,555.39 5,293.21 -262.18 11/15/2032 DD 12/0l/02SEC ID: 10/1/2003 36201MS450CSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0421389 6.500% 10/1/2003 100.0000 -1,537.440 -1,613.59 1,537.44 -76.15 04/15/2026 DD 04/0l/96SEC ID: 10/1/2003 36206UC23OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0438057 6.000% 10/1/2003 100.0000 -40.760 -38.69 40.76 2.07 05/15/2028 DD 05/0l/98SEC ID: 10/1/2003 36207PTN9OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0449851 6.500% 10/1/2003 100.0000 -2,036.590 -2,137.47 2,036.59 -100.88 01/15/2028 DD 0l/0l/98SEC ID: 10/1/2003 36208FWLOOCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0457814 6.000% 10/1/2003 100.0000 -1.623.390 -1,540.95 1,623.39 82.44 10/15/2028 DD 10/0l/98SEC ID: 10/1/2003 36208QSB3OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0465546 6.000% 10/1/2003 100.0000 -18,828.900 -17,872.74 18,828.90 956.16 08/15/2028 DD 08/0l/98SEC ID: 10/1/2003 36209AET3OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO 18 Workbench, OCSD-CONSOLIDATED -OCSGOOOI0000 Transaction Detail Reported by Transaction Category 10/1/2003 -10/31/2003 Tran Trade Date Settle Date Reported Date Type Description PD PD PD PD PD PD PD PD PD PD GNMA POOL #0465555 6.000% 09/15/2028 DD 09/0l/98SEC ID: 36209AE480CSF07522202: WNG TERM OPER-PIMCO GNMA POOL #0466845 6.500% 06/15/2028 DD 06/0l/98SEC ID: 36209BTA60CSF07522202: WNG TERM OPER-PIMCO GNMA POOL #0467279 6.000% 10/15/2028 DD 10/0l/98SEC ID: 36209CCQ70CSF07522202: WNG TERM OPER-PIMCO GNMA POOL #0467286 6.000%, 10/15/2028 DD 10/0l/98SEC ID: 36209CCX20CSF07522202: WNG TERM OPER-PIMCO GNMA POOL #0468052 6.500% 07/15/2028 DD 07 /Ol/98SEC ID: 36209C5M40CSF07522202: WNG TERM OPER-PIMCO GNMA POOL #0468330 6.000% 05/15/2028 DD 05/0l/98SEC ID: 36209DHF40CSF07522202: WNG TERM OPER-PIMCO GNMA POOL #0468339 6.000% 08/15/2028 DD 08/0l/98SEC ID: 36209DHQOOCSF07522202: WNG TERM OPER-PIMCO GNMA POOL #0469688 6.000%, 11/15/2028 DD 11/0l/98SEC ID: 36209EXR80CSF07522202: WNG TERM OPER-PIMCO GNMA POOL #0476041 6.500% 06/15/2028 DD 06/0l/98SEC ID: 36209MZE70CSF07522202: WNG TERM OPER-PIMCO GNMA POOL #0478626 6.500% 01/15/2029 DD 01/0l/99SEC ID: 36209QVT90CSF07522202: WNG TERM OPER-PIMCO 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 Price Base 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 19 Shares/Par -36,316.070 -14,325.020 -58.180 -57,404.260 -414,976.550 -3,257.140 -688.810 -1.353.200 -11,159.710 -25,073.940 Cost Base -34,471.90 -15,034.56 -55.23 -54,489.20 -435.530.86 -3,091.74 -653.83 -1,284.48 -11,695.03 -26,276.71 Report ID: EWB009 ~ Base Currency: USD Status: FINAL Amount Base 36,316.07 14,325.02 58.18 57,404.26 414.976.55 3,257.14 688.81 1.353.20 11,159.71 25,073.94 Net Gain/Loss Base 1,844.17 -709.54 2.95 2,915.06 -20.554.31 165.40 34.98 68.72 -535.32 -1,202.77 Workbench OCSD-CONSOLIDATED -OCSG000lO000 Transaction Detail Reported by Transaction Category 10/1/2003 -10/31/2003 Tran Type Description Trade Date Settle Date Reported Date PD GNMA POOL #0480598 6.500% 10/15/2028 DD 10/01/98SEC ID: 36209S3F6OCSF07522202: LONG TERM OPER-PIMCO PD GNMA POOL #0483452 6.000% 09/15/2028 DD 09/01/98SEC ID: 36209WBV3OCSF07522202: LONG TERM OPER-PIMCO PD GNMA POOL #0485527 6.500% 06/15/2031 DD 06/01/0lSEC ID: 36209YLG 10CSF07522202: LONG TERM OPER-PIMCO PD GNMA POOL #0485610 6.500% 07/15/2031 DD 07 /01/0lSEC ID: 36209YN38OCSF07522202: LONG TERM OPER-PIMCO PD GNMA POOL #0485682 6.500% 08/15/2031 DD 08/01/0lSEC ID: 36209YRB6OCSF07522202: LONG TERM OPER-PIMCO PD GNMA POOL #0485703 6.500% 08/15/2031 DD 08/01/0lSEC ID: 36209YRY6OCSF07522202: LONG TERM OPER-PIMCO PD GNMA POOL #0486720 6.000% 12/15/2028 DD 12/0l/98SEC ID: 3621 0A VM6OCSF07522202: LONG TERM OPER-PIMCO PD GNMA POOL #0491103 6.000% 01/15/2029 DD 01/0l/99SEC ID: 36210FRY4OCSF07522202: LONG TERM OPER-PIMCO PD GNMA POOL #0496461 6.000% 01/15/2029 DD 0l/0l/99SEC ID: 36210MQN4OCSF07522202: LONG TERM OPER-PIMCO PD GNMA POOL #0497343 6.000% 12/15/2028 DD 12/0l/98SEC ID: 36210NP45OCSF07522202: LONG TERM OPER-PIMCO 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 10/1/2003 Price Base 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 20 Shares/Par -381.980 -24.580 -45, 150.820 -38,442.970 -13,901.170 -26, 719.030 -509.780 -7,637.220 -11.310.360 -1,065.930 Cost Base -400.30 -23.33 -47,387.20 -40,347.10 -14,589.71 -28,042.46 -483.89 -7,249.39 -10,736.01 -1.011.80 Report ID: EWB009 _,,_,.,_ --] Base Currency: USD Status: FINAL --- Amount Base 381.98 24.58 45,150.82 38,442.97 13,901.17 26,719.03 509.78 7,637.22 11 ,310.36 1,065.93 Net Gain/Loss Base -18.32 1.25 -2,236.38 -1,904.13 -688.54 -1,323.43 25.89 387.83 574.35 54.13 Workbench, Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000lO000 10/1/2003 -10/31/2003 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base PD GNMA POOL #0499153 6.000% 10/1/2003 100.0000 -25.530 -24.23 25.53 1.30 02/15/2029 DD 02/0l/99SEC ID: 10/1/2003 36210QQE5OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0500917 6.000% 10/1/2003 100.0000 -274.230 -260.30 274.23 13.93 04/15/2029 DD 04/0l/99SEC ID: 10/1/2003 36210SPA0OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0503388 6.000% 10/1/2003 100.0000 -31,536.310 -29,934.86 31,536.31 1,601.45 03/15/2029 DD 03/0l/99SEC ID: 10/1/2003 36210VF55OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0506636 6.000% 10/1/2003 100.0000 -1,891.930 -1,795.86 1,891.93 96.07 04/15/2029 DD 04/0l/99SEC ID: 10/1/2003 36210YY90OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0512235 6.500% 10/1/2003 100.0000 -3,316.610 -3,480.89 3,316.61 -164.28 11/15/2029 DD l l/01/99SEC ID: 10/1/2003 362 l 1GBC6OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0514326 6.500% 10/1/2003 100.0000 -ll,107.030 -ll,639.82 11,107.03 -532.79 07/15/2029 DD 07 /0l/99SEC ID: 10/1/2003 36211JLF2OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0530053 6.500% 10/1/2003 100.0000 -8,591.840 -9,017.41 8,591.84 -425.57 04/15/2031 DD 04/01/0lSEC ID: 10/1/2003 36212CZS3OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0530290 6.500% 10/1/2003 100.0000 -75.160 -78.77 75.16 -3.61 03/15/2031 DD 04/01/0lSEC ID: 10/1/2003 36212DC310CSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0537885 6.500% 10/1/2003 100.0000 -16,031.420 -16,825.48 16,031.42 -794.06 02/15/2031 DD 02/01/0lSEC ID: 10/1/2003 36212MREIOCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0547512 6.500% 10/1/2003 100.0000 -2,163.390 -2,270.55 2,163.39 -107.16 04/15/2031 DD 04/01/0lSEC ID: 10/1/2003 36212YGV9OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO 21 Workbench ---_______ ,., ___ :•"-·-· Transaction Detail Rqmm,~7 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000I0000 10/1/2003 -10/31/2003 Status: FINAL ------ Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base PD GNMA POOL #0547715 6.500% 10/1/2003 100.0000 -163.090 -170.91 163.09 -7.82 02/15/2031 DD 02/01/0lSEC ID: 10/1/2003 36212YN820CSF07522202: WNG TERM 10/1/2003 O.PER-PTMCO PD GNMA POOL #0552322 6.500% 10/1/2003 100.0000 -6.110.990 -6.413.68 6,110.99 -302.69 1/15/2032 DD Ol/01/02SEC ID: 10/1/2003 36213ESK30CSF07522202: WNG TERM 10/1/2003 OPER-P1MCO PD GNMA POOL #0552466 6.500% 10/1/2003 100.0000 -58,595.710 -61,498.03 58,595.71 -2,902.32 03/16/2032 DD 03/01 /02SEC TD: 10/1/2003 36213E:W360CSF07522202: LONG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0552659 6.500% 10/1/2003 100.0000 -37.883.490 -39,759.9 1 37,883.49 -1.876.42 07/15/2032 DD 07 /Ol /02SEC ID: 10/1/2003 36213E5 U60CSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD GNMA POOL #0561017 6.500% 10/1/2003 100.0000 -58,950.970 -61.870.89 58,950.97 -2,919.92 07/15/2031 DD 07/01/0lSEC ID: 10/1/2003 36213QG290 CSF07522202: WNG TERM 10/1/2003 OPER-PlMCO PD GNMA 11 POOL #0080023 VAR RT 12/20/202610/1/2003 100.0000 -12,898.370 -13,112.00 12,898.37 -213.63 DD 12./01/96SEC ID: 10/1/2003 36225CAZ90CSF07522202: WNG TERM 10/1/2003 OPER-PlMCO PD GNMA II POOL #080088M 7.375% 10/1/2003 100.0000 -22,040.440 -22,522.58 22,040.44 -482.14 06/20/2027 DD OG/01/97SEC ID: 10/1/2003 36225CC200CSF07522202: WNG TERM 10/1/2003 OPER-PIMCO PD GNMA 11 POOL #0080395 VAR RT 10/1/2003 100.0000 -12,309.290 -12,197.74 12,309.29 111.55 04/20/2030 DD 04/01/00SEC ID: 10/1/2003 36225CNM40CSF07522202: LONG TERM 10/1/2003 OPER-PTMCO PD GNMA II POOL #080408X 6.500% 10/1/2003 100.0000 -119,008.900 -117,800.22 119,008.90 1,208.68 05/20/2030 DD 05/01 /OOSEC ID: 10/1/2003 36225CN280CSF'07522202: WNG TERM 10/1/2003 OPER-PIMCO PD GNMA GTD REMIC TR 2000-9 FH VAR RT 10/16/2003 100.0000 -42,357.980 -42,357.98 42,357.98 0.00 02/ 16/2030SEC JD: 10/16/2003 3837H'1NX90CSF07522202: WNG TERM 10/16/2003 OPER-PIMCO 22 Workbench· OCSD-CONSOLIDATED -OCSGOOOl0000 Transaction Detail Reported by Transaction Category 10/1/2003 -10/31/2003 Tran Trade Date Settle Date Reported Date Type Description TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: TOTAL FIXED INCOME SECURITIES BASE: TOTAL PRINCIPAL PAYMENTS BASE: MATURITIES CASH &: CASH EQUIVALENTS U.S.DOLLAR MT MT MT MT MT MT FEDERAL HOME LN BK CONS DISC N MAT 10/10/2003SEC ID: 313384MU0OCSF07522202: LONG TERM OPER-PIMCO FEDERAL HOME LN BKS CONS DISC MAT 10/15/2003SEC ID: 313384MZ9OCSF07522202: LONG TERM OPER-PIMCO FEDERAL HOME LN BK CONS DISC N MAT 10/24/2003SEC ID: 313384NJ4OCSF07522202: LONG TERM OPER-PIMCO FEDERAL HOME LN BKS CONS DISC MAT 10/29/2003SEC ID: 313384NP0OCSF075 l l l 02: LIQUID OPER- PIMCO FEDERAL NATL MTG ASSN DISCOUNT MAT 10/15/2003SEC ID: 313588MZ5OCSF07522202: LONG TERM OPER-PIMCO 10/10/2003 10/10/2003 10/10/2003 10/15/2003 10/15/2003 10/15/2003 10/24/2003 10/24/2003 10/24/2003 10/29/2003 10/29/2003 10/29/2003 10/15/2003 10/15/2003 10/15/2003 10/23/2003 10/23/2003 WELLS FARGO BK NA INSTL C/D 1.060% 10/23/2003 DD 09/23/03SEC ID: 94975UXB8OCSF0751 l 102: LIQUID OPER- PIMCO 10/23/2003 TOTAL CASH&: CASH EQUIVALENTS U.S. DOLLAR: TOTAL CASH&: CASH EQUIVALENTS BASE: FIXED INCOME SECURITIES Price Cost Base Shares/Par Base ---2,659,921.160 -2, 747,098.54 -2,659,921.160 -2,747,098.54 -2,659,921.160 -2,747,098.54 100.0000 -4,400,000.000 -4,389,473.00 100.0000 -12,000,000.000 -11,969,666.67 100.0000 -3,800,000.000 -3, 790,115.88 100.0000 -1,500,000.000 -1,496,037.71 100.0000 -13. 700,000.000 -13,665,023.14 100.0000 -1.400,000.000 -1,400.000.00 -36,800,000.000 -36, 710,316.40 -36,800,000.000 -36, 710,316.40 23 Report ID: EWB009 '] Base Currency: USD Status: FINAL Amount Base 2,659,921.16 2,659,921.16 2,659,921.16 4,389,473.00 11,969,666.67 3,790,115.88 1,496,037.71 13,665,023.14 1,400,000.00 36,710,316.40 36,710,316.40 Net Gain/Loss Base -87,177.38 -87,177.38 -87,177.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Workbench OCSD-CONSOLIDATED -OCSG000I0000 Tran Type Description U.S. DOLLAR Transaction Detail Reported by Transaction Category 10/1/2003 -10/31/2003 Trade Date Settle Date Reported Date Price Base Shares/Par MT FEDERAL FARM CR BKS CONS MTN 5.000% 10/2/2003 100.0000 -550,000.000 10/02/2003 DD 10/02/98SEC ID: 10/2/2003 31331RC78OCSF07511102: LIQUID OPER-10/2/2003 PIMCO Cost Base -565,229.50 TOTAL MATURITIES BASE: -37,350,000.000 -37,275,545.90 INTEREST CASH & CASH EQUIVALENTS U.S. DOLLAR IT IT IT IT IT IT cw FEDERAL HOME LN BK CONS DISC N MAT 10/10/2003SEC ID: 313384MU0OCSF07522202: LONG TERM OPER-PIMCO FEDERAL HOME LN BKS CONS DISC MAT 10/15/2003SEC ID: 313384MZ9OCSF07522202: LONG TERM OPER-PIMCO FEDERAL HOME LN BK CONS DISC N MAT 10/24/2003SEC ID: 313384NJ4OCSF07522202: LONG TERM OPER-PIMCO FEDERAL HOME LN BKS CONS DISC MAT 10/29/2003SEC ID: 313384NP0OCSF07511102: LIQUID OPER- PIMCO FEDERAL NATL MTG ASSN DISCOUNT MAT 10/15/2003SEC ID: 313588MZ5OCSF07522202: LONG TERM OPER-PIMCO WELLS FARGO BK NA INSTL C/D 1.060% 10/23/2003 DD 09/23/03SEC ID: 94975UXB8OCSF075 l l 102: LIQUID OPER- PIMCO SHOR!' TERM FDS INT ADJ NET OF OVERNIGHT INTERESTSEC ID: 990000PJ4OCSF07522202: LONG TERM OPER-PIMCO 10/10/2003 10/10/2003 10/10/2003 10/15/2003 10/15/2003 10/15/2003 10/24/2003 10/24/2003 10/24/2003 10/29/2003 10/29/2003 10/29/2003 10/15/2003 10/15/2003 10/15/2003 10/23/2003 10/23/2003 10/23/2003 10/31/2003 10/31/2003 10/31/2003 4,400,000.000 12,000,000.000 3,800,000.000 1,500,000.000 13. 700,000.000 1,400,000.000 0.000 24 10,527.00 30,333.33 9,884.12 3,962.29 34,976.86 1,236.67 -37.54 Report ID: EWB009 :J Base Currency: USD Status: FINAL Amount Base 550,000.00 37,260,316.40 10,527.00 30,333.33 9,884.12 3,962.29 34,976.86 1,236.67 -37.54 Net Gain/Loss Base -15,229.50 -15,229.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Workbench· I OCSD-CONSOLIIMTED -OCSG000I000O Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD 10/1/2003 -10/31/2003 Status: FINAL -- Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT DREYFUS TREASURY CASH MGMTSEC ID: 10/2/2003 0.000 436.17 436.17 0.00 9960852470CSF0751 l 102: LIQUID OPER-10/1/2003 PIMCO 10/2/2003 IT DREYFUS TREASURY CASH MGMTSEC ID: 10/2/2003 0.000 824.61 824.61 0.00 99608524 70CSF07522202: LONG TERM 10/1/2003 OPER-PIMCO 10/2/2003 TOTAL CASH & CASH EQUIVALENTS U.S. DOLLAR: 36,800,000.000 92,143.51 92,143.51 0.00 TOTAL CASH & CASH EQUIVALENTS BASE: 36,800,000.000 92,143.51 92,143.51 0.00 FIXED INCOME SECURITIES U.S. DOLLAR IT ASSOCIATES CORP NORfH AMER 5.800% 10/20/2003 1. 000,000.000 29,000.00 29,000.00 0.00 04/20/2004 DD 04/20/99SEC ID: 10/20/2003 046003KA60CSF0751 l 102: LIQUID OPER-10/20/2003 PIMCO IT WMP/HUNTOON PAIGE #000-11150 7.500% 10/31/2003 758.860 5,926.33 5,926.33 0.00 12/01/2030 DD 10/21/99SEC ID: 10/1/2003 302998GE30CSF07522202: LONG TERM 10/31/2003 OPER-PIMCO IT FHLMC GROUP #G4-0353 7.500% 10/15/2003 12.179.770 676.21 676.21 0.00 10/01/2004 DD 03/01/99SEC ID: 10/1/2003 3128DBMA20CSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT FHLMC MULTICLASS MTG SER E3 A VAR RT 10/21/2003 38.166.600 4,128.84 4,128.84 0.00 08/15/2032 DD 12/0J /97SEC ID: 9/1/2003 3133TCE950 CSF075222.02: LONG TERM 10/21/2003 OPER-PlMCO IT FHLMC MULTICLASS MTG SER E3 A VAR RT 10/21/2003 3.100 3.10 3.10 0.00 08/15/2032 DD 12/01 /97SEC ID: 9/1/2003 3133TCE950CSF07522202: LONG TERM 10/21/2003 ·OPER-PIMCO IT FHLMC MULTICLASS CTF SER 16202 6.000% 10/17/2003 14.861.040 14,861.04 14,861.04 0.00 11/15/2023 DD 11/0l/93SEC ID: 10/1/2003 3133Tl 7 A40CSF07522202: LONG TERM 10/17/2003 OPER-Pil'rlCO 25 Workbench I Transaction Detail Reported by Transaction Category 10/1/2003 -10/31/2003 Status: FINAL L~SD-CONSOLID~:~D -OCSG000I0000 , .. -.... Report ID: EWB0-09-J Base Currency: USD ,._,_ ----------,.,.,., __ ,,__ ---- Tran Trade Date Settle Date Reported Date Type Description IT IT IT IT IT IT IT IT IT IT FEDERAL FARM CR BKS CONS MTN 5.000% 10/2/2003 10/02/2003 DD 10/02/98SEC ID! 10/2/2003 31331RC780CSF0751 l 1,02: LIQUID OPER-l0/2/2003 PIMCO FEDERAL HOME LN MTG CORP DEB 3.750% 10/15/2003 04/15/2004 DD 04/ 15/02SEC ID: 10/15/2003 3134A4PH10CSF07511102: LIQUID OPER-l0/!5/2003 PlMCO FHLMC GROUP #78-6064 6.384% 01/01/2028 DD 12/0l/97SEC ID: 3 1348SWZ30 CSF07522202: LONG TERM OPER-PlMCO FNMA POOL #0254510 5.000o/o 11/01/2017 DD 10/01/02SEC ID: 313711{VB40CSF07522202: LONG TERM OPER-PTMCO FNMA POOL #0254510 5.000% 11 /01/2017 DD 10/01 /02SEC ID: 31371 £WB40CSF07522202: LONG TERM OPER-PIMCO FNMA POOL #0254631 5.000% 02/01/2018 DD 01/01/03SEC ID: 3137 1 KY470 CSF07522202: LONG TERM OPER-PIMCO FNMA POOL #0254631 5.000% 02/01/2018 DD 01/01/0SSEC ID: 31371KY470CSF07522202: LONG TERM OPER-PJMCO FNMA POOL #0254760 5.000% 06/01/2018 DD 05/01/03SEC ID: 3137ll{5V90CSF07522_202: LONG TERM OPER-PIMCO FNMA POOL #0254866 5.000% 09/01/2018 DD 08/01 /03SEC ID: "3 I 3 71 LCB30CSF07522202: LONG TERM OPER-PlMCO FNMA POOL #0323980 6.000% 04/01/2014 DD 09/0l/99SEC ID: 31374T2MOOCSF07522202: LONG TERM OPER-PIMCO 10/15/2003 9/1/2003 10/15/2003 10/2/2003 9/1/2003 10/2/2003 10/27/2003 10/1/2003 10/27/2003 10/1/2003 9/1/2003 10/1/2003 10/27/2003 10/1/2003 10/27/2003 10/27/2003 10/1/2003 10/27/2003 10/27/2003 10/1/2003 10/27/2003 10/27/2003 10/1/2003 10/27/2003 Price Base 26 Shares/Par 550,000.000 1,100,000.000 392.360 43,602.770 20,618.240 5,985.390 3,468.360 3,014.220 449.490 14,591.550 Cost Base 13,750.00 20,625.00 278.90 3,922.79 3,741.11 806.80 781.87 701.66 299.18 1,225.31 Amount Base 13,750.00 20,625.00 278.90 3,922.79 3,741.11 806.80 781.87 701.66 299.18 1,225.31 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Workbench. Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000I0000 10/1/2003 -10/31/2003 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base ITC FNMA POOL #0357328 5.000% 10/3/2003 -4,602.010 -6,614.74 -6,614.74 0.00 01/01/2018 DD 0l/01/03SEC ID: 9/1/2003 31376J4M8OCSF07522202: LONG TERM 10/1/2003 OPER-PIMCO IT FNMA POOL #0357328 5.000% 10/3/2003 4,602.010 170.38 170.38 0.00 01/01/2018 DD 0l/0l/03SEC ID: 9/1/2003 31376J4M8OCSF07522202: LONG TERM 10/3/2003 OPER-PIMCO IT FNMA POOL #0357328 5.000% 10/27/2003 2,167.380 151.21 151.21 0.00 01/01/2018 DD 0l/0l/03SEC ID: 10/1/2003 31376J4M8OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0456482 6.000% 10/27/2003 4,654.430 421.70 421.70 0.00 02/01/2014 DD 02/0l/99SEC ID: 10/1/2003 31381 CCT2OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0509649 6.000% 10/27/2003 1,798.890 1,209.98 1,209.98 0.00 09/01/2014 DD 09/0l/99SEC ID: 10/1/2003 31383QEW0OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0535451 6.000% 10/27/2003 12,094.560 974.12 974.12 0.00 06/01/2015 DD 07 /01/00SEC ID: 10/1/2003 31384VZQ8OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0535672 6.000% 10/27/2003 281,082.300 21,335.25 21,335.25 0.00 01/01/2016 DD 12/01/00SEC ID: 10/1/2003 31384WCH 1 OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0545296 6.0000/o 10/27/2003 106,784.780 7,200.73 7,200.73 0.00 11/01/2016 DD 10/01/0lSEC ID: 10/1/2003 31385HXZ0OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0545580 6.0000/o 10/27/2003 8,644.220 596.43 596.43 0.00 03/01/2017 DD 03/0l/02SEC ID: 10/1/2003 31385JCR7OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0545998 6.0000/o 10/27/2003 14,853.930 1,154.38 1,154.38 0.00 11/01/2032 DD 10/0l/02SEC ID: 10/1/2003 31385JRT7OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO 27 Workbench -···-----·--.-· .. ·-·--- Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSGOOOlOOOO 10/1/2003 -10/31/2003 Status: FINAL --... .----~- Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT FNMA POOL #0555101 6.000% 10/27/2003 12,706.170 1,029.15 1,029.15 0.00 10/01/2017 DD ll/Ol/02SEC ID: 10/1/2003 31385WU23OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0555285 6.000% 10/27/2003 48,628.570 4,571.66 4,571.66 0.00 03/01/2033 DD 02/01/03SEC ID: 10/1/2003 31385W2S7OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0555363 5.000%> 10/27/2003 6,891.340 1,680.69 1,680.69 0.00 04/01/2018 DD 03/01/03SEC ID: 10/1/2003 31385W5Yl OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0555528 6.0000/o 10/27/2003 58,016.210 4,511.53 4,511.53 0.00 04/01/2033 DD 05/01/03SEC ID: 10/1/2003 31385XD95OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0555545 5.000% 10/27/2003 8,412.440 1,414.55 1.414.55 0.00 06/01/2018 DD 05/01/03SEC ID: 10/1/2003 31385XES2OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0555640 6.000% 10/27/2003 55,487.360 4,528.15 4,528.15 0.00 07/01/2033 DD 06/01/03SEC ID: 10/1/2003 31385XHR1OCSF07522202: WNGTERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0576386 6.000% 10/27/2003 10,254.710 395.11 395.11 0.00 05/01/2016 DD 05/01/0lSEC ID: 10/1/2003 31386XJ72OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0576739 6.0000/o 10/27/2003 31,590.180 1,120.47 1,120.47 0.00 04/01/2016 DD 04/01/0lSEC ID: 10/1/2003 31386XV86OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0580888 6.0000/o 10/27/2003 13,153.040 1,323.88 1,323.88 0.00 05/01/2016 DD 05/01/0lSEC ID: 10/1/2003 31387DJ910CSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0594002 6.000% 10/27/2003 16,455.730 1,052.99 1,052.99 0.00 07/01/2016 DD 07 /01/0lSEC ID: 10/1/2003 31387T3K8OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO 28 Workbench· .,.-- ~] I OCSIJ.CONSOLIDATED -OCSGOOOlOOOO Transaction Detail . Report ID: EWB009 Reported by Transaction Category Base Currency: USD 10/1/2003 -10/31/2003 Status: FINAL ------ Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT FNMA POOL #0597376 6.000% 10/27/2003 1,531.980 1,342.10 1,342.10 0.00 09/01/2016 DD 08/01/0lSEC ID: 10/1/2003 31387XI'96OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0605259 6.000% 10/27/2003 1,394.400 1,013.37 1,013.37 0.00 09/01/2016 DD 09/01/0lSEC ID: 10/1/2003 31388HMG 1 OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0608366 6.000% 10/27/2003 38,429.060 757.30 757.30 0.00 10/01/2016 DD 09/01/0lSEC ID: 10/1/2003 31388LZ78OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0616734 6.000%> 10/27/2003 698.960 863.42 863.42 0.00 12/01/2016 DD 12/01/0lSEC ID: 10/1/2003 31388WEF9OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0630812 6.000% 10/27/2003 948.750 1,080.56 1,080.56 0.00 02/01/2017 DD 02/0l/02SEC ID: 10/1/2003 31389NYH2OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0632376 6.000% 10/27/2003 57,826.350 4,859.89 4,859.89 0.00 07/01/2017 DD 07 /0l/02SEC ID: 10/1/2003 31389QQ50OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0653116 6.000% 10/27/2003 37,107.500 2,785.16 2,785.16 0.00 07/01/2017 DD 07 /0l/02SEC ID: 10/1/2003 31390QSD8OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0673280 6.000% 10/27/2003 26,673.840 1,214.17 1,214.17 0.00 08/01/2017 DD ll/0l/02SEC ID: 10/1/2003 31391P6R2OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0681309 5.000% 10/27/2003 13,987.770 2,538.39 2,538.39 0.00 02/01/2018 DD 02/0l/03SEC ID: 10/1/2003 31391 Y3S4OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0681334 5.000% 10/1/2003 4,688.590 338.56 338.56 0.00 02/01/2018 DD 0l/0l/03SEC ID: 9/1/2003 31391Y4TlOCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO 29 Workbench Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000lO000 10/1/2003 -10/31/2003 Status: FINAL --.... ---- Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT FNMA POOL #0681334 5.000% 10/27/2003 1,467.530 319.03 319.03 0.00 02/01/2018 DD 01/01/03SEC ID: 10/1/2003 31391 Y 4TlOCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0685665 5.000% 10/27/2003 842.640 161.51 161.51 0.00 02/01/2018 DD 02/01/03SEC ID: 10/1/2003 31400EW22OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0686318 5.000% 10/1/2003 18,369.550 1.453.00 1,453.00 0.00 03/01/2018 DD 03/01/03SEC ID: 9/1/2003 31400FPB7OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO IT FNMA POOL #0686318 5.000% 10/27/2003 2,468.930 1,376.46 1,376.46 0.00 03/01/2018 DD 03/01/03SEC ID: 10/1/2003 31400FPB7OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0688739 5.000% 10/27/2003 4,661.190 546.98 546.98 0.00 06/01/2018 DD 06/01/03SEC ID: 10/1/2003 31400JEL9OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0693834 5.000% 10/27/2003 7,491.660 3,235.99 3,235.99 0.00 03/01/2018 DD 03/0l/03SEC ID: 10/1/2003 31400PY74OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0695852 5.000% 10/1/2003 26,554.980 1,335.74 1,335.74 0.00 05/01/2018 DD 05/0l/03SEC ID: 9/1/2003 31400SBVOOCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO IT FNMA POOL #0695852 5.0000/o 10/27/2003 8,154.900 1,225.10 1,225.10 0.00 05/01/2018 DD 05/0l/03SEC ID: 10/1/2003 31400SBV0OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0695889 5.0000/o 10/27/2003 13,434.520 3,655.58 3,655.58 0.00 05/01/2018 DD 05/0l/03SEC ID: 10/1/2003 31400SC23OCSF07522202: WNG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0697026 5.0000/o 10/1/2003 1,149.130 125.13 125.13 0.00 05/01/2018 DD 04/0l/03SEC ID: 9/1/2003 31400TLF2OCSF07522202: WNG TERM 10/1/2003 OPER-PIMCO 30 W-orkbenclt, Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSGO00l0000 10/1/2003 -10/31/2003 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT FNMA POOL #0697026 5.000% 10/27/2003 617.780 120.34 120.34 0.00 05/01/2018 DD 04/01/03SEC ID: 10/1/2003 31400TLF2OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0698939 6.000% 10/27/2003 35,834.780 691.32 691.32 0.00 09/01/2017 DD 03/0l/03SEC ID: 10/1/2003 31400VPY2OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0702210 5.000% 10/1/2003 18,274.670 1,302.92 1,302.92 0.00 05/01/2018 DD 05/0l/03SEC ID: 9/1/2003 31401ADP9OCSF07522202: LONGTERM 10/1/2003 OPER-PIMCO IT FNMA POOL #0702210 5.000% 10/27/2003 6,284.820 1,226.78 1,226.78 0.00 05/01/2018 DD 05/01/03SEC ID: 10/1/2003 31401ADP9OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0703195 6.0000/4 10/27/2003 838.910 424.45 424.45 0.00 01/01/2017 DD 04/01/03SEC ID: 10/1/2003 31401BGC3OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0709148 5.0000/o 10/2/2003 1,387.290 1,308.55 1,308.55 0.00 06/01/2018 DD 06/0l/03SEC ID: 9/1/2003 31401HZM7OCSF07522202: LONGTERM 10/2/2003 OPER-PIMCO IT FNMA POOL #0709148 5.0000/o 10/27/2003 5,060.960 1,302.77 1,302.77 0.00 06/01/2018 DD 06/0l/03SEC ID: 10/1/2003 31401HZM7OCSF07522202: LONGTERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0710235 5.0000/o 10/27/2003 8,369.680 3,477.69 3,477.69 0.00 06/01/2018 DD 06/0l/03SEC ID: 10/1/2003 31401KBC8OCSF07522202: LONGTERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0713344 5.0000/o 10/2/2003 1,199.250 118.74 118.74 0.00 06/01/2018 DD 06/0l/03SEC ID: 9/1/2003 31401NP520CSF07522202: LONG TERM 10/2/2003 OPER-PIMCO IT FNMA POOL #0713344 5.0000/o 10/27/2003 679.890 113.74 113.74 0.00 06/01/2018 DD 06/0l/03SEC ID: 10/1/2003 31401NP52OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO 31 Workbench Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000I0000 10/1/2003 -10/31/2003 Status: FINAL ---··---···-···---···-· ... ---- Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT FNMA POOL #0720369 5.000% 10/2/2003 35,738.920 4,166.67 4,166.67 0.00 06/01/2018 DD 06/01/03SEC ID: 9/1/2003 31401WJN0OCSF07522202: LONG TERM 10/2/2003 OPER-PIMCO IT FNMA POOL #0720369 5.0000/o 10/24/2003 35,738.920 4,166.67 4,166.67 0.00 06/01/2018 DD 06/0l/03SEC ID: 9/1/2003 31401WJN0OCSF07522202: LONG TERM 10/24/2003 OPER-PIMCO IT FNMA POOL #0720369 5.0000/o 10/27/2003 34,402.980 4,017.75 4,017.75 0.00 06/01/2018 DD 06/01/03SEC ID: 10/1/2003 31401WJN0OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT FNMA POOL #0720369 5.0000/o 10/29/2003 34,402.980 4,017.75 4,017.75 0.00 06/01/2018 DD 06/0l/03SEC ID: 10/1/2003 31401WJN0OCSF07522202: LONG TERM 10/29/2003 OPER-PIMCO IT FNMA POOL #0721629 5.0000/o 10/2/2003 2,711.120 1,363.01 1,363.01 0.00 07/01/2018 DD 06/0l/03SEC ID: 9/1/2003 31401XVW4OCSF07522202: LONGTERM 10/2/2003 OPER-PIMCO IT FNMA POOL #0721629 5.0000/o 10/27/2003 3,004.810 1,351.71 1,351.71 0.00 07/01/2018 DD 06/0l/03SEC ID: 10/1/2003 31401XVW4OCSF07522202: LONG TERM 10/27/2003 OPER-PIMCO IT GNMA POOL #0596612 6.5000/o 10/15/2003 53,215.070 2,375.00 2,375.00 0.00 09/15/2032 DD 09/0l/02SEC ID: 10/1/2003 36200BYH4OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0569358 6.5000/o 10/15/2003 108,269.640 8,016.77 8,016.77 0.00 04/15/2032 DD 04/0l/02SEC ID: 10/1/2003 36200QQK3OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0569685 6.5000/o 10/15/2003 4,586.300 350.08 350.08 0.00 02/15/2032 DD 02/0l/02SEC ID: 10/1/2003 36200Q2S2OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0570019 6.500% 10/15/2003 9,218.400 587.94 587.94 0.00 07/15/2032 DD 07 /01/02SEC ID: 10/1/2003 36200RG48OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO 32 W'Jrkbench" Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 10/1/2003 -10/31/2003 Status: FINAL M,_,., Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT GNMA POOL #0574323 6.500% 10/15/2003 73,675.050 3,846.98 3,846.98 0.00 12/15/2031 DD 12/01/0lSEC ID: 10/1/2003 36200WAY7OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0575364 6.500% 10/15/2003 5,626.330 381.69 381.69 0.00 11/15/2031 DD 11/01/0lSEC ID: 10/1/2003 36200XFD6OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0587117 6.500% 10/15/2003 2,663.100 146.80 146.80 0.00 06/15/2032 DD 06/0l/02SEC ID: 10/1/2003 36201MG220CSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0587439 6.500% 10/15/2003 5,293.210 437.76 437.76 0.00 11/15/2032 DD 12/0l/02SEC ID: 10/1/2003 36201MS45OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0421389 6.500% 10/15/2003 1,537.440 98.07 98.07 0.00 04/15/2026 DD 04/0l/96SEC ID: 10/1/2003 36206UC23OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0438057 6.000% 10/15/2003 40.760 147.53 147.53 0.00 05/15/2028 DD 05/01/98SEC ID: 10/1/2003 36207PTN9OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0449851 6.500% 10/15/2003 2,036.590 146.75 146.75 0.00 01/15/2028 DD 0l/0l/98SEC ID: 10/1/2003 36208FWLOOCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0457814 6.000% 10/15/2003 1,623.390 213.26 213.26 0.00 10/15/2028 DD 10/0l/98SEC ID: 10/1/2003 36208QSB3OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0465546 6.000% 10/15/2003 18,828.900 2,535.31 2,535.31 0.00 08/15/2028 DD 08/0l/98SEC ID: 10/1/2003 36209AET3OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0465555 6.000%, 10/15/2003 36,316.070 2,849.25 2,849.25 0.00 09/15/2028 DD 09/0l/98SEC ID: 10/1/2003 36209AE48OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO 33 Workbench ----- Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000lO000 10/1/2003 -10/31/2003 Status: FINAL --~----··-" ---- Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT GNMA POOL #0466845 6.500% 10/15/2003 14,325.020 483.33 483.33 0.00 06/15/2028 DD 06/0l/98SEC ID: 10/1/2003 36209BTA6OCSF07522202: WNG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0467279 6.000% 10/15/2003 58.180 114-89 114.89 0.00 10/15/2028 DD 10/0l/98SEC ID: 10/1/2003 36209CCQ7OCSF07522202: WNG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0467286 6.000o/o 10/15/2003 57,404.260 2,282.87 2,282.87 0.00 10/15/2028 DD 10/0l/98SEC ID: 10/1/2003 36209CCX2OCSF07522202: WNG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0468052 6.500% 10/15/2003 414,976.550 3,669.84 3,669.84 0.00 07/15/2028 DD 07 /0l/98SEC ID: 10/1/2003 36209C5M4OCSF07522202: WNG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0468330 6.000o/o 10/15/2003 3,257.140 117.15 117.15 0.00 05/15/2028 DD 05/0l/98SEC ID: 10/1/2003 36209DHF4OCSF07522202: WNG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0468339 6.000% 10/15/2003 688.810 2,215.70 2,215.70 0.00 08/15/2028 DD 08/0l/98SEC ID: 10/1/2003 36209DHQ0OCSF07522202: WNG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0469688 6.000% 10/15/2003 1,353.200 90.33 90.33 0.00 11/15/2028 DD 11/0l/98SEC ID: 10/1/2003 36209EXR.8OCSF07522202: WNG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0476041 6.500% 10/15/2003 11,159.710 1,420.33 1,420.33 0.00 06/15/2028 DD 06/0l/98SEC ID: 10/1/2003 36209MZE7OCSF07522202: WNG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0478626 6.500% 10/15/2003 25,073.940 1,177.12 1,177.12 0.00 01/15/2029 DD 0l/0l/99SEC ID: 10/1/2003 36209QVT9OCSF07522202: WNG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0480598 6.500o/o 10/15/2003 381.980 1,352.08 1,352.08 0.00 10/15/2028 DD 10/0l/98SEC ID: 10/1/2003 36209S3F6OCSF07522202: WNG TERM 10/15/2003 OPER-PIMCO 34 \,\,orkbench- Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 10/1/2003 -10/31/2003 Status: FINAL t._ ,._,., Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT GNMA POOL #0483452 6.000% 10/15/2003 24.580 77.05 77.05 0.00 09/15/2028 DD 09/0l/98SEC ID: 10/1/2003 36209WBV3OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0485527 6.500% 10/15/2003 45,150.820 3,026.72 3,026.72 0.00 06/15/2031 DD 06/01/0lSEC ID: 10/1/2003 36209YLG 10CSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0485610 6.500% 10/15/2003 38,442.970 3,431.92 3,431.92 0.00 07/15/2031 DD 07 /01/0lSEC ID: 10/1/2003 36209YN38OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0485682 6.500% 10/15/2003 13,901.170 721.52 721.52 0.00 08/15/2031 DD 08/01/0lSEC ID: 10/1/2003 36209YRB6OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0485703 6.500% 10/15/2003 26,719.030 759.91 759.91 0.00 08/15/2031 DD 08/01/0lSEC ID: 10/1/2003 36209YRY6OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0486720 6.000% 10/15/2003 509.780 66.85 66.85 0.00 12/15/2028 DD 12/0l/98SEC ID: 10/1/2003 3621 0A VM6OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0491103 6.0000/o 10/15/2003 7,637.220 637.39 637.39 0.00 01/15/2029 DD Ol/0l/99SEC ID: 10/1/2003 36210FRY4OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0496461 6.0000/o 10/15/2003 11,310.360 2,372.61 2,372.61 0.00 01/15/2029 DD 01/0l/99SEC ID: 10/1/2003 36210MQN4OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0497343 6.0000/o 10/15/2003 1,065.930 136.16 136.16 0.00 12/15/2028 DD 12/01/98SEC ID: 10/1/2003 36210NP45OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0499153 6.0000/o 10/15/2003 25.530 63.67 63.67 0.00 02/15/2029 DD 02/0l/99SEC ID: 10/1/2003 36210QQE5OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO 35 Workbench Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSGO00I0000 10/1/2003 -10/31/2003 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT GNMA POOL #0500917 6.000% 10/15/2003 274.230 47.67 47.67 0.00 04/15/2029 DD 04/0l/99SEC ID: 10/1/2003 36210SPA0OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0503388 6.000% 10/15/2003 31,536.310 2,037.86 2,037.86 0.00 03/15/2029 DD 03/0l/99SEC ID: 10/1/2003 36210VF55OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0506636 6.000% 10/15/2003 1,891.930 202.92 202.92 0.00 04/15/2029 DD 04/0l/99SEC ID: 10/1/2003 36210YY90OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0512235 6.500% 10/15/2003 3,316.610 89.09 89.09 0.00 11/15/2029 DD ll/0l/99SEC ID: 10/1/2003 36211GBC6OCSF07522202: LONGTERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0514326 6.500% 10/15/2003 11,107.030 1,322.99 1,322.99 0.00 07/15/2029 DD 07 /0l/99SEC ID: 10/1/2003 36211JLF2OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0530053 6.500% 10/15/2003 8,591.840 364.43 364.43 0.00 04/15/2031 DD 04/01/0lSEC ID: 10/1/2003 36212CZS3OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0530290 6.500% 10/15/2003 75.160 374.79 374.79 0.00 03/15/2031 DD 04/01/0lSEC ID: 10/1/2003 36212DC310CSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0537885 6.500% 10/15/2003 16,031.420 733.33 733.33 0.00 02/15/2031 DD 02/01/0lSEC ID: 10/1/2003 36212MRE1OCSF07522202: LONGTERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0547512 6.5000/o 10/15/2003 2,163.390 87.78 87.78 0.00 04/15/2031 DD 04/01/0lSEC ID: 10/1/2003 36212YGV9OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA POOL #0547715 6.5000/o 10/15/2003 163.090 697.83 697.83 0.00 02/15/2031 DD 02/01/0lSEC ID: 10/1/2003 36212YN82OCSF07522202: LONG TERM 10/15/2003 OPER-PIMCO 36 lvbrkbenc1', Transaction Detail . Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000lO000 10/1/2003 -10/31/2003 Status: FINAL ,,.._ ..... ._.,,_ ----_.,,_ --··-···-·""' - Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT GNMA POOL #0552322 6.500% 10/15/2003 6,110.990 496.48 496.48 0.00 01/15/2032 DD Ol/Ol/02SEC ID: 10/1/2003 362 ! 3ESK30CSF0752220:2: LONG TERM 10/15/2003 OPER-PlMCO IT GNMA POOL #0552466 6.500% 10/15/2003 58,595.710 3,939.08 3,939.08 0.00 03/15/2032 DD 03/01/02SEC ID: 10/1/2003 36213EW360CSF07522202: LONG TERM 10/15/2003 OPER-l'lMCO IT GNMA POOL #0552659 6.500% 10/15/2003 37,883.490 3,009.58 3,009.58 0.00 07 / !5/2032 DD 07 /01/02SEC ID: 10/1/2003 362l3E5U60CSF07522202: LONG TERM 10/15/2003 OPER-PlMCO IT GNMA POOL #0561017 6.500% 10/15/2003 58,950.970 3,084.23 3,084.23 0.00 07/16/2031 DD 07/01 /0 lSEC ID: 10/1/2003 36213QG290CSF07522202: LONG TERM 10/15/2003 OPER-PIMCO IT GNMA II POOL #0080023 VAR RI' 12/20/202610/20/2003 12,898.370 1,230.40 1,230.40 0.00 DD 12/01 /96::SEC ID: 10/1/2003 36225.0AZ90CSF07522202: LONG TERM 10/20/2003 OPER-.PlMCO IT GNMA II POOL #080088M 7.375% 10/20/2003 22,040.440 1,351.93 1,351.93 0.00 06/20/2027 DD 06/01/97SEC ID: 10/1/2003 .36225CC20()CSF07522202: LONG TERM 10/20/2003 OPER-PIMCO IT GNMA II POOL #0080395 VAR RI' 10/20/2003 12,309.290 895.09 895.09 0.00 04/20/2030 DD 04/01/00SEC lD: 10/1/2003 36225CNM40CSF07522202: LONG TERM 10/20/2003 OP&R-PIMCO IT GNMA II POOL #080408X 6.500%, 10/20/2003 119,008.900 8,104.51 8,104.51 0.00 05/20/2030 DD 05/0l/OOSEC ID: 10/1/2003 36225CN280CSF07522202: LONG TERM 10/20/2003 OPER-PIMCO IT GENERAL ELEC CAP MTN #TR 00545 VAR RI' 10/20/2003 1,000,000.000 964.44 964.44 0.00 05/20/2004 DD 05/20/02SEC ID: 10/20/2003 36962GYS70CSF0751 l 102: LIQUID OPER-10/20/2003 P[MCQ IT GNMA GTD REMIC TR 2000-9 FH VAR RI' 10/16/2003 42,357.980 1,125.51 1,125.51 0.00 02/16/203"0$EC ID: 10/16/2003 3837H4NX90CSF07522202: LONG TERM 10/16/2003 OPER-PIMCO 37 Workbench OCSD-CONSOLIDATED -OCSG000I0000 Transaction Detail Reported by Transaction Category 10/1/2003 -10/31/2003 Tran Trade Date Settle Date Reported Date Type Description IT IT IT IT CD CD CD HOUSEHOLD FIN CORP NT 6.375% 10/15/2011 DD 10/23/0ISEC ID: 441812J\V50CSF07522202: LONG TERM OPER-PIMCO LEHMAN BROS HLDGS INC 6.625% 04/01/2004 DD 03/26/99SEC ID: 524908BZ2OOSF'07511 l02: LIQUID OPER- PIMCO 10/15/2003 10/15/2003 10/15/2003 10/1/2003 10/1/2003 10/1/2003 MORGAN STANLEY NT 3.625% 04/01/2008 10/1/2003 DD 03/06/03SEC ID: 10/1/2003 617446HW2OCSF07522202: LONGTERM lO/l/2003 OPER-PIMCO PHILIP MORRIS COS INC NTS 7.5000/o 04/01/2004DD 04/01/97SEC ID: 718154CH8OCSF07522202: LONG TERM OPER-PIMCO 10/1/2003 10/1/2003 10/1/2003 US TREASURY INFLATION INDEX NT 3.375% 10/31/2003 01/15/2007 DD 01/15/97SEC ID: 9128272M3OCSF07522202: LONG TERM OPER-PIMCO 10/31/2003 US TREASURY INFIATION INDEX NT 3.625% 10/31/2003 01/15/2008 DD 01/15/98SEC ID: 9 128273T7OCSF07522202: LONG TERM OPER-PIMCO 10/31/2003 US TREASURY INFLATION INDEX NT 3.875% 10/31/2003 01/15/2009 DD 0l/15/99SEC ID: 9 J 28274Y5OCSF07522202: LONG TERM OPER-PIMCO 10/31/2003 TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: TOTAL FIXED INCOME SECURITIES BASE: TOTAL INTEREST BASE: Price Base Shares/Par 1,635,000.000 1,000,000.000 3.200,000.000 5,000,000.000 0.000 0.000 0.000 17,270,901.560 17,270,901.560 54,070,901.560 Cost Base 52,115.63 33,125.00 66,055.56 187,500.00 60,480.00 12,720.00 54.210.00 751,070.82 751,070.82 843,214.33 TOTAL TRANSACTIONS: 1,579,591.22 38 Report ID: EWB009 Base Currency: USD Status: FINAL Amount Base 52,115.63 33,125.00 66,055.56 187,500.00 60,480.00 12,720.00 54,210.00 751,070.82 751,070.82 843,214.33 52,726.84 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -69.711.57 --------- W.wkbe~