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Home My WebLink About2003-12-10• ·' MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Orange County Sanitation District Wednesday, December 10, 2003, 5:00 p.m. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on December 10, 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 Joy Neugebauer James W. Silva Shirley McCracken, Board Chair Steve Anderson, Vice Board Chair Directors Absent: Alberta Christy Mike Duvall APPOINTMENT OF CHAIR PRO TEM STAFF PRESENT: Blake Anderson, General Manager Gary Streed, Director of Financeff reasurer Carol Beekman, Communications Services Manager Bob Ooten, Director of O&M Lisa Tomko, Director of Human Resources Mike White, Controller Simon Watson, Maintenance Manager Dionne Kardos, Public Information Specialist Jim Burrer, Senior Engineer Mike Moore, ECM Manager Jeff Reed, Human Resources Manager Layne Baroldi, Legislative and Regulatory Affairs Liaison Ana Burkhart, Principal Communications Specialist Jean Tappan, Acting Committee Secretary OTHERS PRESENT: Thomas L. Woodruff, General Counsel Toby Weissert Bob Geggie Mark Esquer Charles Egiggian Nichols Chair Brian Brady announced that he would have to leave early and that Vice Chair Roy Moore would chair the remainder of the meeting. {3) PUBLIC COMMENTS There were no public comments. FILED IN THE OFFICE OF THE SECRETARY ORANGE f'"'" -, r. •, ,~ ,T•n~I DISTR\C1 DEC 1 7 2003 f-_· -BY __ ___ Minutes of the Finance, Administration and Human Resources Committee Meeting Page 2 December 10, 2003 (4) REPORT OF THE COMMITTEE CHAIR Chair Brian Brady announced that the next meeting of the FAHR Committee will be February 11 . The Committee will not meet in January. (5) AEPORTOFTHEGENERALMANAGER General Manager Blake Anderson announced that the third Orange County Leadership Symposium would be held January 9-11, 2004, in Lake Arrowhead. A copy of the registration form was provided and he encouraged all Directors to attend. Mr. Anderson also announced that the District has received the AMSA award for Excellence in Management. There will be a presentation ceremony at the AMSA Winter Conference in Los Angeles in February. (6) REPORT OF DlRECTOR OF FINANCE/TREASURER Finance Director Gary Streed reported that the SWAP report includes the SW AP policy. This is required to be provided for the initial report or for the first report after any changes to the policy. Mr. Streed also reported that budget assumptions will be presented at the February FAHR Committee meeting. (7) REPORT OF DIRECTOR OF HUMAN RESOURCES Director of Human Resources Lisa Tomko did not make a report. (8) REPORT OF COMMUNICATIONS SERVICES MANAGER Communications Services Manager Carol Beekman did not make a report. (9) REPORT OF GENERAL COUNSEL General Counsel Thomas Woodruff announced that the Court of Appeals has affirmed the trial court's decision regarding Crow Winthrop. The Appellate Court issued a ruling that the District's Capital Facilities Capacity Charge Ordinance is not subject to Proposition 218 and therefore the fees imposed on Crow Winthrop were not invalidly charged. Appellate costs are to be paid by Crow Winthrop. (10) CONSENT CALENDAR ITEMS a. The Chair ordered that the November 12, 2003 minutes for the Finance, Administration and Human Resources Committee meeting be deemed approved, as mailed. b. FAHR03-101 Recommend to the Board of Directors to receive and file Treasurer's Report for the month of November 2003. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 3 December 10, 2003 c. FAHR03-102 Receive and file Certificate of Participation (COP) Monthly Report. d. FAHR03-103 Receive and file Employment Status Report as of November 25, 2003. e. FAHR03-104 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. f. FAHR03-105 Receive and file report of General Manager approved purchases in amounts exceeding $50,000 in accordance with Board purchasing policies. g. FAHR03-106 Recommend to the Board of Directors to receive and file the SW AP Report for the quarter ended September 30, 2003. h. FAHR03-107 Recommend to the Board of Directors to adopt Resolution No. MOTION: OCSD 03-_, Approving Amendments to the District's Executive Money Purchase Pension Plan and Trust. It was moved, seconded and. duly carried to approve the recommended actions for items specified as 1 0(a) through (h) under Consent Calendar. END OF CONSENT CALENDAR (11) ACTION ITEMS a. FAHR03-108 Recommend to the Board of Directors to authorize the General Manager MOTION: to solicit Requests for Proposal and subsequently award a Consultant Services Agreement for Corporate Identify and Public Awareness Project, Specification No. CS-2003-162BD, in an amount not to exceed $325,000. Communications Services Manager Carol Beekman described the need for the project and the scope of the project. This project was identified in the Communications Plan that was presented to the FAHR Committee in October 2003. The five project components were discussed. The Directors expressed concern about the estimated cost for the total project. There is $125,000 allocated for this work in the fiscal year 2003-04 budget and if all five components are completed, an additional $200,000 would have to be included in the fiscal year 2004-05 budget. It was moved, seconded and duly carried to recommend approval of Phase 1 (identified as the Initial Baseline Research component) in an amount not to exceed $50,000. Director Joy Neugebauer opposed. The Committee unanimously approved forwarding to a future Board meeting the reports and the subject of the entire staff-proposed budget of $325,000 to the Board without any recommendation. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 4 December 10, 2003 b. FAHR03-109 Recommend to the Board of Directors to adopt Ordinance No. OCSD-21, MOTION: Adopting Fees, Procedures and Policies Concerning Annexations of Territory to the District; and Repealing Ordinance No. OCSD-03. Mr. Streed stated that included in the ordinance is Section 6 which declares this an urgency ordinance. This declaration could be removed. It was moved, seconded and duly carried to recommend approval without the urgency provision to the Board of Directors. c. FAHR03-110 Recommend to the Board of Directors to adopt Ordinance No. OCSD-22, MOTION: Reaffirming Sanitary Sewer Service Charges; Providing for Increased Capital Facilities Capacity Charges and Certain New Self-Monitoring and Non Compliance Charges and Repealing Ordinance No. OCSD-20. Mr. Streed explained that the changes being requested are minor except for the amounts of the Capital Facilities Capacity Charges. Because user fees will be considered in April this item could be delayed until then if the Directors desired. After full discussion, It was moved, seconded and duly carried to recommend approval to the Board of Directors. d. FAHR03-111 1) Consider proposal submitted by Revenue Enhancement Group (REG), MOTION: dated November 2003, Identifying Undercharged Commercial Parcels; and, 2) Direct staff to return to the FAHR Committee for approval of a Request for Proposal for some or all of the services proposed by REG; -OR- 3) Direct staff to return to the FAHR Committee with alternatives to administrating the current sewer user fee program. Adam Probolsky spoke in support of the proposal. Mr. Streed briefed the directors on the District's process for collecting the annual sewer service user fees and the recent changes to the rate structure. He confirmed that there are about 28,000 parcels that haven't been looked at. The California Government Code and the existing ordinance allow for seeking any under-billed user fees for the prior four years. Mr. Woodruff discussed some of the potential legal concerns in the event of challenges, as well as the possibility of requiring a public hearing. It was moved, seconded and duly carried to forward the item to the full Board without a FAHR recommendation. This item will be considered by the Board in January when additional information is available. At 6:50 p.m. Chair Brian Brady left the meeting. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 5 December 10, 2003 (12) INFORMATIONAL PRESENTATIONS a. FAHR03-112 Long Range Biosolids Management Plan, Job No. J-40-7 Jim Burror made a presentation on the Long Range Biosolids Management Plan, outlining the process staff and the consultant have taken to develop the plan and describing the findings and recommendations. The plan will be received and filed at the December 17, 2003 Board meeting. Requests for proposal will be issued to fill the interim gap before the long-term options can be implemented. At 7:15 p.m. Director Neugebauer left the meeting. b. FAHR03-113 Status of O&M Reinvention and the District Assessment and Reinvention Team Program Bob Ooten and Simon Watson reported on the status of the reinvention program and outlined the next steps. Staff will continue to work on improving maintenance, replace the Computerized Maintenance Management System that can no longer handle all of the information that is available and spend the right dollars in the right places using asset management principles. (13) CLOSED SESSION General Counsel Woodruff announced the need to discuss an additional item not previously noticed as required by Government Code Section 54954.2(1 ). A motion was duly adopted by unanimous vote to add the following item to the agenda pursuant to the authority of Government Code Section 54954.2(b){2): one matter of possible litigation. The Committee convened in Closed Session at 7:38 p.m. pursuant to Government Code Section 54956.9 to discuss and consider added item and Agenda Item No. 13{a) {1 ). 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. RECONVENE IN REGULAR SESSION: At 8:08 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 There were none. ~ · Minutes of the Finance, Administration and Human Resources Committee Meeting Page 6 December 10, 2003 (16) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled for February 11, 2004 at 5 p.m. (17) ADJOURNMENT The Chair declared the meeting adjourned at 8:1 0 p.m. Submitted by: n Tappan mg FAHR Committee Secretary G:\wp.dla\agenda\FAHR\FAHR2003\1203\121003 FAHR Minutes.doc STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, I hereby certify that the Notice and the Agenda for the Finance, Administration, and Human Resources Committee meeting to be held on 1 Urlll~... / lJ , 200 ~ was duly posted for public inspection in the main lobby of the District's offices on O~L-i 20Q.27. IN WITNESS WHEREOF, I have hereunto set my hand this a~.20Q3. Penny M. Kyl , Secreta Board of Directors tjP1 day of Orange County Sanitation District G:\WP.DTA\ADMIN\BS\FORMS\AGENDA CERTIFICA TION-FAHR COMMITTEE.DOC phone: 1714) 962-2411 fmt: (714) 962-0356 -.ocad.cam maHlng address: P.O Box 8127 Fountain Valley, CA 92728-8127 Ct..caddress: 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Member Agencin • Cities Anaheim Bree Buena Park Cypress Fountain Valley Fullerton Garden Grove Huntingtan Besch Irvine Ls Habra Ls Palma Los Alamitos Nt;wport Beach Orange Placentia Santa Ans Seel Beach Stanton Tustin Villa Perk Yorba Linda C.ntv Df Orang• S.lllt•ry Districts Costa ME:!sa Midway City Water Districts Irvine Ranch ORANGE COUNTY SANITATION DISTRICT December 3, 2003 NOlilCE OF MEETING FINANCE, ADMINISTRATION AND HUMAN RESOURCES_ COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, DECEMBER· 10, 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-c:/ass leadership in wastewater and water resource management. FINANCE, ADMINISTRATlON AND· HUMAN RESOURCES COMMITTEE MEETING DATES FAHR Committee Meeting Oa.te December 10, 2003 Dark February 11 , 2004 March 10, 2004 April 14, 2004 May 12, 2004 June 9, 2004 July 1· 4, 2004 Dark September 8, 2004 October 13, 2004 November 10, 2004 Board Mee.ting Dates "'Decem~er 17, 2003 January 28, 2004 February 25, 2004 March 24, 2004 April 28, 2004 May 26, 2004 June 23, 2004 July 28, 2004 August25,2004 September 22, 2004 October 27, 2004 November 17, 2004 *Meetings being held the third Wednesday of the month. ROLL CALL FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Meeting Date: December 1 o, 2003 Time: 5:00 p.m. Adjourn: ___ _ COMMITTEE MEMBERS Brian Brady (Chair) Roy Moore (Vice Chair) Alberta Christy Mike Duvall Bill Dalton Joy L. Neugebauer James W. Silva Shirley McCracken (Board Chair) Steve Anderson (Board Vice Chair) OTHERS Tom Woodruff, General Counsel Don Hughes STAFF Blake Anderson, General Manager David Ludwin, Director of Engineering Bob Ooten, Director of O & M Lisa Tomko, Director of Human Resources Gary Streed, Director of Finance/Treasurer Patrick Miles, Director of Information Technoloav Robert Ghirelli, Director of Technical Services Carol Beekman, Communications Services Mgr Mike White, Controller Penny Kyle, Committee Secretary Jim Burrer Simon Watson c: Lenora Crane AGENDA REGULAR MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (1) (2) ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, DECEMBER 10, 2003, AT 5:00 P.M. ADMINISTRATIVE 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 Oistrict'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 Posted: 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). ROLL CALL APPOINTMENT OF CHAIR RRO TEM, IF NECESSARY Book page 1 December 10, 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) REPO~T OF COMMITTEE CHAIR (5) REPORT OF GENERAL MANAGER (6) REPORT OF DIRECTOR OF FINANCE (7) REPORT OF DIRECTOR OF HUMAN RESOURCES (8) REPORT OF COMMUNICATIONS SERVICES MANAGER (9) REPORT OF GENERAL COUNSEL (10) CONSENT CALENDAR ITEMS Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: ........... ~ .................. -•. :,, ..... , '0 • ••··• .. •••••-•...,••"""·•••·••~••--HOO .... HHo•• .................................. .u ... •·•••• .. ••••·•• .... • .. • .. ••• .. •·•••••·•·u.u_,• .. ••-•• ... h·••-•·•••••"'''"'" ••• H , o.o,nno O 00 ,, .. ooou .onu.H .......... unu n oOoo...,,oOOH0 ... 0 .. ~H\ [All matters placed on the consent calendar are considered as not requiring discussion or further explanation and i j 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 l \action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All j !items removed from the consent calendar shall be considered in the regular order of business. ' jThe Chair will determine if any items are to be deleted from the consent calendar. f ~ .. ••••• .. ••••••uun-•n+oo .. ..,.._.., . ...,. .. ,.,,,,.,.,o,u•O • •••••••••• ..... ,,noooo·o, •-oou••••• .............. u , .. oo•u••• ........ ••••-•nn_,., .... , .... u•••·• ••••••· .... ••••••••••••-••-U._ •• ,_,..uo••••••• .. •"n•nn•••••"· .... •••·,..••••'"•·••••"OH••••.,·•••·•••••••••••••J a. Approve minutes of the November 12, 2003 Finance, Administration and Human Resources Committee meeting. b. FAHR03-101 Recommend to the Board of Directors to receive and file Treasurer's Report for the month of November 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 Bookpage2 December 10, 2003 c. FAHR03-102 Receive and file Certificate of Participation (COP) Monthly Report. d. FAHR03-103 Receive and file Employment Status Report as of November 25, 2003. e. FAHR03-104 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. f. FAHR03-105 Receive and file report of General Manager approved purchases in amounts exceeding $50,000 in accordance with Board purchasing policies. g. FAHR03-106 Recommend to the Board of Directors to receive and file the SWAP Report for the quarter ended September 30, 2003. h. FAHR03-107 Recommend to the Board of Directors to adopt Resolution No. OCSD 03-_, Approving Second Amendment to the District's Executive Money Purchase Pension Plan and Trust. END OF CONSENT CALENDAR Consideration of items deleted from Consent Calendar, if any. (11) ACTION ITEMS a. FAHR03-108 Recommend to the Board of Directors to authorize the General Manager to solicit Requests for Proposal and subsequently award a Consultant Services.Agreement for Corporate Identify and Public Awareness Project, Specification No. CS-2003-162BD, in an amount not to exceed $325,000. (Carol Beekman -5 minutes) b. FAHR03-109 Recommend to the Board of Directors to adopt Ordinance No. OCSD-21, Adopting Fees, Procedures and Policies Concerning Annexations of Territory to the District; and Repealing Ordinance No. OCSD-03. (Gary Streed-10 minutes) c. FAHR03-11 O Recommend to the Board of Directors to adopt Ordinance No. OCSD-22, Reaffirming Sanitary Sewer Service Charges; Adopting Capital Facilities Capacity Charges; Adopting Miscellaneous Charges and Fees Relating to Industrial Dischargers, Source Control Permittees and Wastehaulers; and repealing Ordinance No. OCSD-20. (Gary Streed -20 minutes) 3 Bookpage3 December 10, 2003 d. FAHR03-111 1) Consider proposal submitted by Revenue Enhancement Group (REG), dated November 2003, Identifying Undercharged Commercial Parcels; and, 2) Direct staff to return to the FAHR Committee for approval of a Request for Proposal for some or all of the services proposed by REG; -OR- 3) Direct staff to return to the FAHR Committee with alternatives to administrating the current sewer user fee program. (Discussion -30 minutes) (12) INFORMATIONAL PRESENTATIONS a. FAHR03-112 Long Range Biosolids Management Plan, Job No. J-40-7 (Jim Burror -30 minutes) b. FAHR03-113 Status of O&M Reinvention and the District Assessment and Reinvention T earn Program (Bob Ooten/Simon Watson -30 minutes) (13) CLOSED SESSION i During the course of conducting the business set forth on this agenda as a regular me·eting of · the l ! Committee, the Chair may convene the Committee in closed session to consider matters of pending real \ l estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code l ! Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. ! 1 1 1 Reports relating to (a) purchase and sale 0f real property; (b) matters of pending or potential litigation; (c) i 1 ernployee a0ti0ns or neg0tiations with employee representatives; or which are exempt from public disclosure l i under the California Public Records Act, may f>e reviewed by the Committee during a permitted closed I 1 session and are not available for public inspection. At such time as final actions are taken by the Committee ! i on any of these subjects, the minutes will reflect all required disclosures of information. , i '•••u-•H°"''"''""'' ,••••·••••• .... •••••••••• .. ••nH• .. •• .. ••-•.,,•••••••~••---••~ .. ••••• .. ••••••••·• .. •uuu,ooo•O • u •• •·•·••••-••--•• .. ••onH•••••••· .. •• .......... •••••• .. ,-,,--o•••·· ·••• .. ••••••••••uou••·•••·••••• .... ••-••-•••Hoo,o•o••••. ••• 0 noon,_,; A. Convene in closed session. 1. Confer with Lisa Tomko, Human Resources Director, re Meet and Confer update (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, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY 4 Bookpage4 December 10, 2003 (15) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (16) FUTURE MEETING DATES The next Finance, Administration and Human Resources Committee Meeting is scheduled for February 11, 2004, at 5 p.m. (17) ADJOURNMENT • .. u ,o .. H•.o.•...,•••·•-...,....,-..,.-..., .......... .._., .• ..., ................... ..., ....... ..., ......................... ,.. ••• ..., •• ,,._.., ••••.•••.•. •••••·uu .u•••••'"'•••--.u••• .. u·•••••·•••""••·uH••••••••••••u.o.••••••••••••••••-•u•••·••u •• ••-•••••·•••••••••••n••••·••• .. ••n•••••• •••••••••••--••• •·•••••• •••• j Notice to Committee Members: j ~ L 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. i ! : i i' I Committee Chair: Brian Brady (949) 453-5300 i !Committee Secretary: Penny Kyle (714) 593-7130 pkyle@ocsd.com ! jGeneral Manager Blake Anderson (714) 593-7110 banderson@ocsd.com \: I Director of Finance Gary Streed (714) 593-7550 gstreed@ocsd.com t !Director of Human Resources Lisa Tomko (714) 593-7145 ltomko@ocsd.com 1 i Communicati?n .services .Manager ... carol. Beekman, .... ~-··--····· (71.4) 593-71,20 ..... cbe~kman@ocsd.com........ ·····-·--········j G:\wp.dta\agenda\FAHR\FAHR2003\ 1203\01.3.draft FAHR Agenda.doc 5 Bookpage5 December 3, 2003 FAHR COMMITTEE AGENDA CALENDAR Month Item Action January DARK February Quarterly SW AP Report Action February Mid-Year FY 03-04 Financial Report Action February Quarterly Investment Mgt Program Report Action February Revised Purchasing Resolution Action February Budget Assumptions, Calendar and Fiscal Policy Action Statements February Preliminary Sewer Service User Fees for 2003-04 Information February Quarterly SW AP Report Action February Unrepresented Groups Compensation and Benefits Action February Human Resources Policies & Procedures Action February Safety Policies Action March General Manager Approved Purchases Action March "Internal" Auditing Firm Action March Sewer Service User Fees for 2003-04 Information Bookpage6 MINUTES 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 Services 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 Vice Chair Roy Moore reported that Lisa Tomko, Director of Human Resources, was attending a conference that week and would not be able to attend the FAHR Committee meeting. Book page 7 Minutes of the Finance, Administration and Human Resources Committee Meeting Page2 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 tor 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 tor 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, Book page 8 Minutes 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 Bloodbome 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. Bookpage9 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 Financeffreasurer, 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 Average 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 forthe 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 payments for the connection fees over Book page 10 Minutes 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. pu1Suant 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: Bookpage 11 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Gary G. Streed, Director of Finance Originator: Michael D. White, Controller Meeting Date 12/10/03 Item Number FAHR03-102 SUBJECT: CERTIFICATES OF PARTICIPATION (COP) MONTHLY REPORT - NOVEMBER 2003 GENERAL MANAGER'S RECOMMENDATION Receive and file Certificates of Participation (COP) Monthly Report for the month of November 2003. SUMMARY To Bel. of Dir. Item Number 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. 1:81 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\FAHRIFAH R2003\ 1203\03-1 02.COP .doc Revised: 06/04/03 Book page 13 Page 2 l-a! 0 a.. w a! ~ OM I-0 (/J 0 -N J: a! Ww t-m <( ~ a! w >-> :::! 0 <( z C a.. 0 0 C u, 0 0 M 0 (%) 3.L~ Book page 14 t0•I\0N·6~ t0•I\0N·S to·i:>o-zz t0·J:>O-8 to-das-tz to-das-o~ to-Bnv-J.Z to-Bnv-t~ to-1nr-ot to-1nr-9~ to-1nr-z to-unr-s~ to-unr-t co-~ew-~z co-~ew-L t0·JdV-tZ t0·JdV-6 t0·JBll'J·9Z C0·JBll'J·Z ~ co-qa::1-gz to-qa::1-z~ to-uer-sz to-uer-s~ co-uer-~ zo-:>aa-s~ zo-:>aa-t w I-< C a. cu s: 0(/) oc: OCD NC) s8 Cl.Cl) ++ ('I) (J) ... Cl) .0 ('I) .Ce8 ~~N Cl)(/)~ .!:C)·;:: n,_(I) Cl.<{CI) +++ r--Ol i-: (/) :E w ~ fl C Ill C u:: r::: C) C) Cl) 6 N N ~ C ~ ~ -=! ai 0 X ..9! (.') t:1:i 0 0 :,,;- 'Cl ~ (1) ,_ VI Prepared by Finance, 12/2/2003, 11 :11 AM COMPARATIVE DAILY COP RATE HISTORY REPORT November 2003 4.00 ,-.-_ -~--"'!!!!!!!!!!!!"'!""!!"!!'-------------~~---, 3.oo L ----------------------------------7 -~ ~ ~ 2.00 ~ I I 1.00 -l rniTiifl A r--,--, r,--, ~ r----7--rr It I I I I I I I I i I I I I I I I I I·• 0.00 ' I -----, DATE N (") (") (") (") (") (") (") (") (") (") (") 0 0 0 0 0 0 0 0 0 0 0 0 u c .ci ...: ...: >, c "S C> ci. .... > Q) co Q) co C. co :::::l :::::l Q) (.) 0 0 -, LJ_ :a: <( 2 -, -, <( Cl) 0 z mocso •COMPOSITE INDEX G:\excel.dta\fin\2220\geggi\Finance\dailycopintrate.xls 1.5 1.25 -~ ~ w t-~ 1 0.75 0.5 -1--_.__oL..-_ HIGH LOW IPWnRl/\0 MERYUIR\ND .;~{~;~;~i~ (tl 1111 II :1:1: ;;:;:;~~;;: COP RATE HISTORY COMPARISON OF HIGHEST & LOWEST RATES -----'" ... -.,~,-.... ' ••• ••• ••• ••• ••• ••• ••• ••• ••• ••• ••• ••• .... ••• 1 .. . ii •• ill hfl 03 411g 01 Sep 01 Oct 03 ,L~HllRIMl I ILEHnfloo I ILEHnRwt> I ILEHIIRl/\0 I ~ERYUIR\l\/0 ME.RYUIR\ND SB/IRl/\0 MERYUIRIM) a Highest rate DOCSD/PW2000 • OCSD/PaineWebber • Lowest rate ••• ••• •• i •• •• ••• ••• ••• ••• .... ••• ••• ••• .... ••• ••• ••• ::: ••• :u ••• ••• ••• ·1· • • • • ••• ··: :t • ••• ••• ••• ••• ••• ••• ••• ••• • ILEH/IR\11/D MERYUIR'MJ ~ ! II! !!!! l!f Ill ! i~ G:\excel.dta\fin\2220\geggi\Finance\RA TEHIST _HILO _bargraph Prepared by Finance, 12/2/2003, 11:10AM ti, ~ ,:, i ...... -...J Prepared by Finance, 12/2/2003, 11 : 10 AM Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 AVERAGE DAILY COP RA TE HISTORY COMPARISON OF MONTHLY AVERAGES DEC 2002 -NOV 2003 ocso $218.6M $46M Series 2000 Series 93 Ref Composite Paine Webber PaineWebber Index* 1.05 1.05 1.04 0.85 0.85 0.85 1.05 1.05 1.04 1.05 1.05 1.05 1.16 1.16 1.15 1.21 1.21 1.19 0.99 0.99 0.98 0.67 0.67 0.68 0.77 0.77 0.76 0.89 0.89 0.88 0.89 0.89 0.88 1.06 1.06 1.05 0.97% I 0.97% 0.96% ESTIMATED ANNUAL INTEREST PAYMENTS PER $100M PAR AMOUNT $ 910,000 I $ 910,000 I$ 962,500 *FOOTNOTE Composite index consists of the following COP transactions: . IRWD, Series 86-COP, 88, 95, $106.1M, Solomon Smith Barney . IRV'vO, Series C-Ref 93-B, 85-8, $62.1 M, Lehman Brothers . IRV'vO, Series 91, 93, 85, $93.0M, PaineWebber . IRV'vO, 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 COMMITT.EE Meeting Date 12/10/03 AGENDA REPORT Item Number FAHR03-103 Orange County Sanitation District FROM: Lisa Tomko, Director of Human Resources Originator: Lisa Arosteguy, Human Resources Supervisor SUBJECT: EMPLOYMENT STATUS REPORT AS OF NOVEMBER 25, 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 552.25 as of November 25, 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. ~ Not applicable (information item) ADDITIONAL INFORMATION The actual number of employees (headcount) was 564 as of November 25, 2003. To Bel. of Dir. Item Number • Darren Schuler was promoted from Maintenance Worker to Mechanic (Regional Assets and Services) • Martin Dix was laterally transferred from a Principal Information Technology Analyst to an Engineer (Regional Assets and Services) G:\wp.dta\agenda\FAHR\FAHR2003\1203\03-103.EE Status.doc Revised: 06/04/03 Book page 18 Page 1 There were six new hires: • Two (2) Interns (Communications) • Two (2) Laboratory Analysts (Environmental Sciences Lab) • Principal Accountant (Accounting) • Principal Contracts Administrator (Purchasing) There was one resignation: • Executive Assistant (Operations and Maintenance Administration) ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1 . November 25, 2003 Employment Status Report 2. Performance compared to budgeted FTE's G:\wp.dta\agenda\FAHRIFAHR2003\1203\03-103.EE Status.doc Revised: 06/04/03 Book page 19 Page2 tp 0 0 ?\'" "O ,,, (IQ (1) ~ EMPLOYMENT STATUS REPORT AUTHORIZED FTE ACTUALFTE DIV REG 0.50 0.75 .IQ!&, REG 0.50 0.75 110 General Management Admin 2.00 . . 2.00 2.00 -. 120 Administrative Services 7.00 0.50 -7.50 5.00 0.50 - 130 Communication Services 7.00 . . 7.00 6.00 -- General Management Totals 16.00 0.50 . 16.50 13.00 0.50 - 210 Finance Administration 2.00 . . 2.00 2.00 -- 220 Accounting 18.00 . . 18.00 17.00 -- 230 Purchasing & Warehousing 19.00 0.50 . 19.50 18.00 1.00 - Finance Totals 39.00 0.50 . 39.50 37.00 1.00 . 510 Human Resources Admin 5.00 . . 5.00 4.00 -- Interns Intern Program (510) 9.00 . . 9.00 . 5.00 . 520 Employee Development 3.00 . . 3.00 2.00 -- 530 Safety & Health 7.00 --7.00 6.00 . . 540 Human Resources 6.00 . . 6.00 6 00 - Human Resources Totals 30.00 . . 30.00 18.00 5.00 . 610 Technical Services Admin 2.00 . . 2.00 2.00 . . 620 Environmental Comp & Mont 21.00 . . 21.00 19.00 0.50 . 630 Environmental Laboratory 36.00 1.00 37.00 34.00 2.00 . 640 Source Control 40.00 40.00 37.00 . . Technical Services Totals 99.00 1.00 -100.00 92.00 2.50 . 710 Engineering Admin 3.00 . . 3.00 3_00 ' . 740 Planning 14.00 . -14.00 14.00 . . 750 Project Management Office 14.00 -0.75 14.75 11.00 . 1 50 760 Engineering & Construction 48.00 --48.00 45.00 -- Engineering Totals 79.00 0.75 79.75 73.00 -1.50 810 O&M Administration 3.00 -. 3.00 2.00 . . 420 Collection Facilities Mtce 28.00 1.00 -29.00 21.00 1.00 . 430 Facilities Maintenance 31.00 1.00 -32.00 30,00 1.00 . 820 O&M Process Support 14.00 0.50 -14.50 1100 0.25 - 830 Plant 1 Operations 40.00 0.50 0.75 41.25 36.00 0.50 0.75 840 Plant 2 Operations 45.00 0.50 . 45.50 44.00 0.50 . 850 Mechanical Maintenance 55.00 0.50 . 55.50 54.00 0.50 - 860 Electrical & Instrumentation Mtce 54.00 0.50 . 54.50 53.00 0.50 . 880 Air Quality & Special Projects 11.00 . . 11.00 11.00 - Operations & Maintenance Totals 281.00 4.50 0.75 286.25 262.00 4.25 0.75 010 IT Administration 2.00 . . 2.00 2.00 -- 930 Customer & Network Support 17.00 . . 17.00 14.00 -- 940 Programming & Database Sys 12.00 . . 12.00 9.00 -- 950 Process Controls Integration 13.00 . -13.00 11.00 -. Information Technology Totals 44.00 . . 44.00 36.00 . . GRAND TOTAL 588.00 6.50 1.50 531 .00 13.25 2.25 ·I TOTAL TOTAL AUTHORIZED FTE ACTUALFTE 596.00 552.25 H:\540\open\Recruiting_shared\03-04 Position Control-EMT REPORT Recruitments V/1.Gi!n:·lt•:::; LOA TOTAL . 2.00 . 1.00 6.50 1.00 1 00 . 6.00 1.00 I OD 1.00 14.50 2.00 2,!J(J -2.00 . - OJ5 17.75 . IJ.25 . 19.00 !1511 0.75 38.75 . 0.75 . 4.00 1.00 1 ("iU . 5.00 0.50 .. 1 cu . 2.00 1.00 1 OD 1.00 7.00 . . 6.00 . . 1.00 24.00 2.50 fi.Dtl . 2.00 . -19.50 . I DD . 36.00 1.00 i OG . 37.00 3.00 3 GO . 94.50 4.00 5,50 . 3.00 -. -14.00 . . . 12.50 2.00 ? 2D 1.00 46.00 3.00 '2.n0 1.00 75.50 5.00 4,15 -2.00 1.00 1.00 . 22.00 8.00 :.fY) . 31.00 1.00 I()() . 11.25 3.00 3.2:; 37.25 3.00 4,0() . 44.50 . 1.:)1) . 54.50 1.00 I U) 1.00 54.50 1.00 - . 11.00 . . 1.00 268.00 18.00 !8,25 -2.00 . 1.00 15.00 2.00 2.0G . 9.00 . .. ; ;}t) . 11.00 . 2 (_1() 1.00 37.00 2.00 ?,0G 5.75 I· Total Torcii Vc:candt~f-; Recruitments + ('.;~:;3 ;·e~:::;,tn·: :~1:;): 33.50 10.25 11/25/2003 t:c 0 ~ 'O ~ N - STAFFING REPORT 600 ,---------,--------=----------- 590 580 570 560 550 540 530 520 • II • II ~ j--4 ~ I! I ~ ~ 510 G,~r;;;;;;-r~;T~~::-:-:-::-r-=-:-T-:-----r----i------,-------r---,--___J JAN I FEB I MAR I APR I MAY I JUN JUL I AUG I SEP I OCT I NOV I DEC -+-AUTHORIZED I 567 I 567 I 567 I 567 I 567 I 567 FTE 596 I 596 I 596 I 596 I 596 I 596 -ACTUAL FTE 532.50 I535.50 1540.00 I 539.75I540.75 I 540.75 1543.25 I 544.751544.25 I 545.25 I548.25 I552.25 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. 12/10/03 Item Number Item Number FAHR03-104 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 10 DART Cases District-wide for the period of January-October 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-October 2003. There have been 12 OSHA Recordable Accidents District-wide tor the period of January-October 2003. The industry average is 9.0 for the Total Injury Frequency Rate while the District Incident Rate is 2.68 for the period of January-October 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 three. The costs associated with these claims for year-to-date is $22,800, 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 Page 1 Bookpage22 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 District had 12 DART cases and two other injuries that required only medical treatment for the period of January-October 2003. The reporting period is for 45 days prior to committee meeting. ALTERNATIVES N/A CEQA FINDINGS N/A 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 Page2 Safety Division DART Cases District-Wide There have been 1 O DART Cases in 2003 (January -October) (DART -Days Away, Restricted or Transfer; replaces Lost Work Day.) DART Cases lll 25 :g 20 -1-....-.....-------1 (.) a 15 ii 10 E 5 :::, z 0+--'-----.----~~_._..._--.-_.___,_-,-__._~'-, 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-October). 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. OSHA Incidence Rates DART Cases Q) 5.00 ~ i rn Irl¥n==n=rr 0.00 3-J I , 1999 2000 2001 Calendar Year 2002 2003 Bookpage24 Total Injuries District-Wide There have been 12 OSHA Recordable Accidents for 2003 (January -October) Total OSHA Recordable Accidents 0 CJ) 60 HJ .... c 40 H 2, --Ocn:=nl---•-- 0 I ~ 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 2.68 for 2003 (January -October). First Aid cases are not included in the calculation of this rate. 10.00 I 8.00 i 6 .00 4.00 :E 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 -October 2003 totaled $104,903.40. 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 $63,082.63, which resulted in savings of $41,820.77 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 $270,794 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 $289,474 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 $358,330 7/1/00-6/30/01 32 4 $434,364 7/1/01 -6/30/02 30 9 $295,460 7/1/02-6/30/03 18 6 $100,991 7 /1 /03 -6/30/04 3 3 YTD $22,800 "Total Incurred" includes medical bills, temporary disability payments to employees, legal costs, and a claim reserve account. Book page 26 FAHR COMMITTEE Meeting Date To Bd. of Dir. 12/10/03 AGEN DA REPORT Item Number Item Number FAHR03-105 O~ange County Sanitation District FROM: Marc Dubois, Contracts/ Purchasing Manager SUBJECT: GENERAL MANAGER APPROVED PURCHASES GENERAL MANAGER'S RECOMMENDATION Receive and file report of General Manager approved purchases in amounts exceeding $50,000 in accordance with Board purchasing policies. SUMMARY In May 1998, the FAHR Committee and the Board approved changes to the staff purchasing authority. One of the changes was to increase the dollar threshold before Board authority was required for purchases of goods or services, excluding public works purchases, to $100,000. When approving this change, the Committee asked for periodic reports showing purchases approved by the General Manager for amounts between $50,000 and $100,000. Subsequent to receiving the initial report, the Committee requested that future reports be placed on the Consent Calendar. Vendor Name Amount Description/Discussion SCEC South Coast Environmental Company $95,000 Air Quality monitoring services to provide the RATA annual and compliance source testing for Cen Gen. Mission Linen Supply $76,000 Annual Contract for the rental of District uniforms and linen products. Villalobos & Associates $99,221 Consulting services for the collection systems siphon & force main assessment. Paulus Engineering, Inc. $68,249 Emergency repairs to 24" Raitt Street VCP trunk line. Section 2.03 A.1 of Resolution 99-23, the District's Delegation of Authority Resolution, authorizes the General Manager to purchase items that have been previously authorized by the Board as identified in the annual District budget. During the budget adoption process, the lists of these items were highlighted for the Directors. For these reasons, purchases that fell into these categories are not included in this report. G:\wp.dta\agenda\FAH R\FAH R2003\ 1203\03-105.GM Purchases.doc Revised: 8/20/01 Book page 27 Page 1 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. rgJ Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS N/A G:\wp,dtauigendaV'AH A\FAHR2003\ 1203\03-1 OS.GM Purchru:es.doc Revised: 8/20/01 Book page 28 Page2 FAHR COMMITTEE Meeting Date 12/10/03 AGENDA REPORT Item Number FAHR03-106 Orange County Sanitation District FROM: Gary G. Streed, Director of Finance Originator: Michael D. White, Controller SUBJECT: SWAP REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2003 GENERAL MANAGER'S RECOMMENDATION Receive and file Swap Report for the quarter ended September 30, 2003. SUMMARY To Bd. of Dir. 12/17/03 Item Number In August 2003, the Committee approved an Interest Rate Exchange Agreement Policy that provides guidelines for the use of hedging products including swaps, caps, floors, collars, options, and other similar financial instruments (collectively, "hedging products") in connection with the financial exposure of the District, including interest rate exposure. As required by this policy, following are the quarterly monitoring and reporting requirements and status at September 30, 2003: Requirement Highlight all material changes to hedging product agreements including counterparty downgrades and/or terminations. Results: The District currently utilizes two hedging product agreements, the AIG Swap agreement and the Soc Gen Swap Agreement. The AIG Swap agreement was originally entered into in October 1, 1992 in order to convert the Refunding Certificates of Participation, 1992 Series (the "1992 Certificates") to a fixed rate obligation. There have been no material changes to the agreement. American International Group, lnc.'s current ratings are AAA and Aaa from Standard and Poor's and Moody's, respectively. The Soc Gen Swap Agreement was originally entered into in September 1, 1993 in order to convert the Refunding Certificates of Participation, 1993 Series (the "1993 Certificates) to a fixed rate obligation. There have been no material changes to the agreement. Soc Gen's current ratings are AA-and Aa3 from Standard and Poor's and Moody's, respectively. Requirement Summarize any new hedging products entered into by the District since the last report. Results: This is the District's first Swap Report. As stated above, the District utilizes only two hedging product agreements, the AIG Swap agreement entered into in 1992, and the Soc Gen Swap Agreement, entered into in 1993. Book page 29 Requirement Summarize any planned hedging product transactions and the impact of such transactions on the District; a description of each outstanding Hedging Product agreement, including a summary of its terms and conditions, the notional amount, volume, rates, maturity, the estimated market value of each agreement, the method of procurement (competitive or negotiated), and the full name, description and credit ratings of the agreement's counterparty and if necessary, its applicable guarantor. Results: The District currently is not planning any additional hedging product transactions at this time. Requirement List any amounts which were required to be paid and received, and any amounts which actually were paid and received under each outstanding hedging product over the last quarter; Results: Following are the amounts that were actually paid and received under the District's two swap agreements. All amounts required to be paid and received were actually paid and received. July Paid by the District to the Swap Provider Paid by the Swap Provider on behalf of the District August Paid by the District to the Swap Provider Paid by the Swap Provider on behalf of the District September Paid by the District to the Swap Provider Paid by the Swap Provider on behalf of the District Requirement 1992 Certificates AIG Swap $ 3,140,606.25 $(2,568,064.84) 1993 Certificates Soc Gen Swap $163,020.00 $ (33,556.05) $163,020.00 $ (24,505.91) $161,500.00 $ (28,702.05) List any credit enhancement, liquidity facility or reserves associated therewith including an accounting of all costs and expenses incurred, whether or not in conjunction with the procurement of credit enhancement or liquidity facilities under each outstanding Hedging Product. Results: Credit Enhancements, liquidity facility or reserves associated with the 1992 Certificates AIG Swap: G :\wp.dta\agenda\F AH R\FAHR2003\ 1203\03-106.SWAP Apt.doc Revised: 06/04/03 Book page 30 Page 2 Lloyds Bank Letter of Credit cost for the quarter ended September 30, 2003: $76,708.40 Credit Enhancements, liquidity facility or reserves associated with the 1993 Certificates Soc Gen Swap: Soc Gen Irrevocable Letter of Credit cost for the quarter ended September 30,2003: $54,157.87 Requirement An assessment of the counterparty risk, termination risk, and other risks associated therewith, which shall include the value of the collateral posted by counterparties and the District, the aggregate marked-to-market value for each counterparty and relative exposure compared to other counterparties, and a calculation of the District's Value at Risk for each counterparty. Results: The counter party risk and termination risk has been calculated by Public Resources Advisory Group (PRAG). PRAG used the value at risk methodology in determining the county party risk at maximum exposure over the term of the Swap Agreements. Counterparty exposure limits are important because they create diversification, so if any one counterparty goes bankrupt, the District's total loss would be limited to only one counterparty. The termination risk is what the District would have to pay the counterparty upon a termination of the Swap Agreement. Counterparty Risk Termination Risk Req uirement 1992 Certificates AIG Swap 1993 Certificates Soc Gen Swap $10,554,116 $7,771,664 $15,405,232 $3,498,368 The report shall also include a copy of this Policy in the quarter after it is adopted or subsequently modified. Results: The Interest Rate Exchange Agreement Policy is included as an attachment to this agenda report. PRIOR COMMITTEE/BOARD ACTIONS NIA G:\wp.dtalagenda\FAHRIFAHR2003\1203\03·106.SWAP Apt.doc Revised: 06/04/03 Book page 31 Page 3 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) ADDITIONAL INFORMATION N/A ATTACHMENTS The District's Policy on Interest Rate Exchange Agreements. G:\wp.dta\agenda\FAHR\FAHR2003\1203\03-106.SWAP Apt.doc Revised: 06/04/03 Book page 32 Page4 FINANCE DEPARTMENT POLICY AND PROCEDURE Subject: Interest Rate Exchange Index: Finance Administration Agreement Policy Number: 201-3-2 Effective Date: August27,2003 Prepared by: Finance Administration Supersedes: NIA Approved By: FAHR Committee 1.0 PURPOSE: The District's Interest Rate Exchange Agreement Policy provides guidelines for the use of hedging products including swaps, caps, floors, collars, options, and other similar financial instruments (collectively, "Hedging Products") in connection with the financial exposure of the District, including interest rate exposure. While the use of Hedging Products can reduce the District's exposure to certain risks, prudent monitoring of such instruments is necessary to preserve the District's credit standing and to allow for financial flexibility. As part of the ongoing responsibility of managing the District's finances, the Director of Finance will use these guidelines in determining the appropriate uses for financial Hedging Products and establishing goals for their use. In evaluating a particular transaction involving the use of financial Hedging Products, the Director of Finance shall review the short-term and long-term implications associated with entering into such agreements, including costs, risks, historical trends, capacity limitations, future flexibility, and other similar considerations. The purposes for which the District will consider the use of these products are: 1.1 To prudently reduce exposure to changes in financial valuations in the context of a particular financing, or the overall asset/liability management of the District; or 1 .2 To achieve lower net costs to the District. 1 .3 Hedging Products shall not be used for speculative purposes. Page 1 of 10 2.0 ORGANIZATIONS AFFECTED: General Manager's Office, Finance Department, General Counsel, bond rating agencies, financial advisors, bond underwriters, bond counsel, and external independent auditors. 3.0 REFERENCES: 3.1 Government Finance Officers Association publication "A Guide for Preparing a Debt Policy''. 3.2 "Moody's on Municipals-An Introduction to Issuing Debt" by Moody's Investor Services. 3.3 Handbook for Muni-Bond Issuers by Joe Mysak, published by Bloomberg Professional Library. 3.4 Finance Department Policy and Procedure #201-3-1: Debt Policy. 4.0 POLICY: 4.1 Forms and Agreements- 4.1. 1 To the extent possible, the Hedging Product agreements entered into by the District shall contain the terms and conditions set forth in the International Swap and Derivatives Association, Inc. ("ISDA'') Master Agreement, including any schedules and confirmation. 4.1 .1 .1 The schedule should be modified to reflect specific legal requirements and business terms desired by the District. 4.1 .1 .2 The Director of Finance shall consider whether to include provisions that permit the District or the counterparty to assign its rights and obligations under an agreement and to optionally terminate such agreement at its market value at any time. 4.1 .2 The District will present the form of agreements to the Board of Directors and request authorization to enter into such agreements subject to modifications determined by the Director of Finance to be in the best interests of the District. Page 2 of 10 4.2 Procurement- 4.2.1 It shall be the policy of the District to solicit and procure Hedging Products by competitive bidding whenever feasible. 4.2.2 The Director of Finance shall determine which parties it will allow to participate in a competitive transaction but such parties must conform to the minimum credit standards outlined in this Policy. 4.2.3 Notwithstanding the above, the Director of Finance may procure Hedging Products by negotiated methods if it is determined that due to the size or complexity of a particular instrument competitive bidding is undesirable, impractical, or impossible and a negotiated transaction would provide the most value to the District. 4.2.3.1 In such a situation, the Director of Finance should attempt to price the hedge based upon an agreed-to methodology relying on available pricing information to obtain inputs to a mathematical model. 4.2.3.2 If appropriate, the Director of Finance should use an independent financial advisory firm to assist in the price negotiations. 4.2.4 Regardless of the method of procurement, the Director of Finance shall obtain an independent finding that the terms and conditions of any Hedging Product reflect a fair market value of such agreement as of the date of its execution. 4.3 Risk Exposure- 4.3.1 Before entering into a Hedging Product, the Director of Finance shall evaluate all the risks inherent in the transaction. 4.3.1 .1 Counterparty Risk: The Director of Finance shall endeavor to minimize counterparty risk by establishing strong minimum counterparty credit standards and diversifying the District's exposure to counterparties. To that end, before entering into a transaction, the District should determine its existing exposure to the relevant counterparty or counterparties and determine how the proposed transaction would affect the exposure. The exposure should not be measured solely in terms of amount or duration of the Hedging Product, but rather how changes in market conditions would affect the District's exposure Page 3 of 10 ("Value at Risk"). The Value at Risk should be based on all outstanding Hedging Product agreements with each counterparty. 4.3.1.2 Termination risk: The District may be required to make a large payment to the counterparty if the Hedging Product is terminated prior to its scheduled maturity pursuant to its terms. The termination risk can be minimized through selection of counterparties with strong creditworthiness, requiring the counterparty to post collateral in excess of the market value of the agreement, limiting the circumstances where a payment may be required, and by permitting the assignment of the agreement to a creditworthy entity in lieu of termination. 4.3.1 .3 Rollover risk: The potential need to find a replacement counterparty as part of the overall plan of finance if the duration of the Hedging Product does not match the expected duration of the underlying financing to be hedged. Rollover risk can be minimized during the initial execution of the plan of finance by matching the duration of any hedge to the financing. 4.3.1.4 Basis risk: The potential mis-match between the payments, typically based on an index, the District is receiving as paI1 of a Hedging Product and the actual payments made by the District. The Director of Finance will evaluate different indices as part of its analysis of a Hedging Product and identify the amount of basis risk that may result from various indices. 4.3.1.5 Event risk: Results from the impact that an unexpected event (i.e. -counterparty actions as a result of certain events, changes in Federal and State income tax codes on interest rates, and other possible events that affect a Hedging Product) has on a hedge established by the District. The Director of Finance will evaluate the potential impact of changes in conditions that could affect the economics of a hedge; for example, how changes in marginal tax brackets affect the economics of using a taxable LIBOR-based interest rate to hedge tax-exempt variable rate exposure. 4.3.2 Identification of the risks and discussion of the means, if any, employed to mitigate the risks will be contained in the Director of Page 4 of 10 Finance's report addressed to the Board of Directors recommending approval of the Hedging Product agreements. 4.4 Counterparty Credit Standards- 4.4.1 Certain risk reduction products result in a continuing exposure to the creditworthiness of financial institutions that serve as the District's counterparties on such transactions. To protect the District's interests in the event of a counterparty credit problem, the Director of Finance will recommend entering into a Hedging Product with a counterparty having capitalization of at least $200 million and only if: 4.4.1 .1 At least two of the counterparty's credit ratings are at least "Aa3" or "AA-", or equivalent by any two of the nationally recognized rating agencies (i.e. Moody's, Standard and Poor's, or Fitch); or 4.4. 1 .2 The payment obligations of the counterparty shall be unconditionally guaranteed by an entity with such minimum credit ratings. 4.5 Collateralization On Downgrade- 4.5.1 Should the rating (a) of the counterparty, if its payment obligations are not unconditionally guaranteed by another entity, or (b) of the entity unconditionally guaranteeing its payment obligations, if so secured, not satisfy the requirements set forth in "COUNTERPARTY CREDIT STANDARDS" above, then the obligations of such counterparty shall be collateralized with securities acceptable to the Director of Finance · at thresholds with minimum transfer amounts as set forth in the Hedging Product agreement. 4.6 Termination- 4.6.1 A termination payment to or from the District may be required in the event of termination of a Hedging Product due to a default of either the District or the counterparty, certain additional termination events or optional termination by the District. 4.6.2 In the event of default by a counterparty whereby the District would be required to make a termination payment due to the current termination value of a Hedging Product, the Director of Finance will proceed as follows: Page 5 of 10 4.6.2.1 In order to mitigate the financial impact of making such payment at the time such payment is due, the Director of Finance will seek to replace the terms of the terminated transaction with another counterparty. The District will also have the option to have the defaulting counterparty seek to reassign the agreement to a new counterparty that meets all District criteria. As long as the terms of the replacement Hedging Product agreement are substantially the same as the original agreement (i.e., amount/volume, interest rate, maturity date), the Director of Finance is authorized to find a replacement counterparty without the approval of the Board of Directors. 4.6.2.2 If a satisfactory agreement with a new or replacement counterparty is reached, the new counterparty will make an upfront payment to the District in an amount that should nearly offset the payment obligation of the District to the original counterparty. 4.6.2.3 If a satisfactory agreement with a replacement counterparty is not reached, the District will be required to make a termination payment to the original defaulting counterparty. 4.6.3 The Director of Finance will promptly report to the Board of Directors upon the occurrence of a termination event and the actions taken in response. 4. 7 Legality- 4. 7 .1 In conjunction with any hedges, the District must obtain an opinion reasonably acceptable to the market from a regionally or nationally recognized law firm that such Hedging Product is a legal, valid, and binding obligation of the District. 4.8 Responsibilities- 4.8.1 The Director of Finance is responsible for determining the appropriate uses for risk reduction products in conjunction with the District's financings and programmatic needs and making recommendations to the Board of Directors. 4.8.2 The Controller is responsible for reflecting the use of Hedging Products and other derivative financing transactions on the District's financial statements in accordance with generally accepted accounting principles. Page 6 of 10 4.9 Monitoring and Reporting- 4.9.1 The Director of Finance shall issue a report to the Finance, Administration and Human Resources Committee in each quarter which the District enters into or continues to be a party to a Hedging Product, which shall include, but not be limited to, the following information, to the extent applicable: 4.9.1.1 Highlights of all material changes to Hedging Product agreements including counterparty downgrades and/or terminations; 4.9.1.2 A summary of any new Hedging Products entered into by the District since the last report; 4.9.1.3 A summary of any planned Hedging Product transactions and the impact of such transactions on the District; a description of each outstanding Hedging Product agreement, including a summary of its terms and conditions, the notional amount, volume, rates, maturity, the estimated market value of each agreement, the method of procurement (competitive or negotiated), and the full name, description and credit ratings of the agreement's counterparty and if necessary, its applicable guarantor; 4.9.1.4 Any amounts which were required to be paid and received, and any amounts which actually were paid and received under each outstanding Hedging Product; 4.9.1.5 Any credit enhancement, liquidity facility or reserves associated therewith including an accounting of all costs and expenses incurred, whether or not in conjunction with the procurement of credit enhancement or liquidity facilities under each outstanding Hedging Product; and 4.9.1.6 An assessment of the counterparty risk, termination risk, and other risks associated therewith, which shall include the value of the collateral posted by counterparties and the District, the aggregate marked-to-market value for each counterparty and relative exposure compared to other counterparties, and a calculation of the District's Value at Risk for each counterparty. Page 7 of 10 4.9.2 Such report shall also include a copy of this Policy in the quarter after it is adopted or subsequently modified. 5.0 DEFINITIONS: 5.1 AMORTIZATION RISK -Represents the cost to the issuer of servicing debt or honoring swap payments due to a mismatch between bonds and the notional amount of swap outstanding. Amortization risk is characteristic of swaps used to hedge variable rate bonds issued to finance amortizing assets, such as mortgages. Amortization risk occurs to the extent bonds and swap notional amounts become mismatched over the life of a transaction. 5.2 BASIS RISK -Refers to a mismatch between the interest rate received from the swap contract and the interest actually owed on the issuer's bonds. 5.3 CALL OPTION -A contract through which the owner is given the right but is not obligated to purchase the underlying security or commodity at a fixed price within a limited time frame. 5.4 CAP -A ceiling, or maximum, for the interest rate which would be paid. 5.5 COLLAR -The combination of owning a Cap and selling a Floor. Generally, it is structured so that the net cost of the collar is zero or close to zero. This means that the expense for the long cap premium is offset by the credit received for the floor premium. 5.6 COUNTER PARTY RISK -The risk that the swap counterparty will not fulfill its obligation to honor its obligations as specified under the contract. 5.7 DERIVATIVE -A financial product which is based upon another product. Generally, derivatives are risk management tools. 5.8 FLOOR -A lower limit on the interest rate which would be paid. 5.9 INTEREST RATE RISK -The risk associated with changes in general interest rate levels or Yield Curves (See Yield Curves). 5.10 INTEREST RATE SWAP -The contract whereby one party typically agrees to exchange a floating rate for a fixed coupon rate. An essential characteristic of swaps is the swapping of cashflows and not principal amounts. 5.11 ISDA -The International Swaps and Derivatives Association, a global trade association representing participants in the derivatives industry. See a blank Page 8 of 10 copy of the ISDA Master Agreement used in developing Hedging Product agreements within Appendix A. 5.12 LIBOR -London lnterBank Offered Rate is the average of rate quotes paid on deposits from five major banks; Bank of America, Barclays, Bank of Tokyo, Deutsche Bank, and Swiss Bank. LIBOR is quoted daily in the Wall Street Journal's Money Rates and compares closely to the 1-year Treasury Security index. LIBOR's cost of money is a widely monitored international interest rate indicator. LIBOR is currently being used by both Fannie Mae and Freddie Mac as an index on the loans they purchase. 5.13 NOTIONAL AMOUNT -The stipulated principal amount for a swap transaction. There is no transfer of ownership in the principal for a swap; but there is an exchange in the cash flows for the designated interest coupons. 5.14 OPTION -A derivative contract. There are two primary types of options. (See Put and Call). An option is considered a wasting asset because it has a stipulated life to expiration and may expire worthless. Hence, the premium could be wasted. 5.15 PUT OPTION -A contract which grants to the purchaser the right but not the obligation to offer or sell an underlying security. 5.16 ROLLOVER RISK -The risk that the swap contract is not coterminous with the related bonds and might be renewed in adverse conditions. 5.17 SWAP -A customized financial transaction between two or more counterparties who agree to make periodic payments to one another. Swaps cover interest rate, equity, commodity and currency products. They can be · simple floating for fixed exchanges or complex hybrid products with multiple option features. 5.18 TAX EVENT RISK -Issuers which issue tax-exempt variable rate bonds inherently accept risk stemming from changes in marginal income tax rates. This is due to the tax code's impact on the trading value of tax-exempt bonds. This risk is also a form of basis risk under swap contracts. 5.19 TERMINATION RISK -The risk that the swap could be terminated by the counterparty due to any of several events, which may include issuer or counterparty ratings downgrade, covenant violation by either party, bankruptcy of either party, swap payment default by either party, and default events as defined in the issuer's bond indenture. The events of default and termination, which could lead to involuntary termination of the contract should include failure to pay, bankruptcy, merger without assumption of obligations anq Illegality. Page 9 of 10 5.20 YIELD CURVE -Refers to the graphical or tabular representation of interest rates across different maturities. The presentation often starts with the shortest term rates and extends towards longer maturities. It reflects the market's views about implied inflation/deflation, liquidity, economic and financial activity and other market forces. Page 10 of 10 ..,.."''0.1..1. ... Y "b~ .,._ FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Blake Anderson, General Manager Originator: Lisa Tomko, Director of Human Resources SUBJECT: Executive Money Purchase Plan (401 (a) Plan) GENERAL MANAGER'S RECOMMENDATION Meeting Date To Bd. of Dir. 12/10/03 12/17/03 Item Number Item Number FAHR03-107 Adopt Resolution No. OCSD 03-_, Approving Second Amendment to the District's Executive Money Purchase Pension Plan and Trust. SUMMARY Please refer to attached memorandum from General Counsel regarding the amendments to the Executive Money Purchase Pension Plan. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. (Line item: Wages and Salary) 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 1. N/A CEQA FINDINGS N/A ATTACHMENTS 1. Resolution No. OCSD 03-XX 2. Memorandum from General Counsel dated 12/01/03 Bookpage43 LAW OFFICES OF WOODRUFF, SPRADLIN & SMART A PROFESSIONAL CORPORATION TO: Chair and MEMORANDUM Members of the Board of Directors Orange County Sanitation District FROM: General Counsel DATE: December 1, 2003 RE: Executive Money Purchase Pension Plan During the tenure of former General Manager, Don McIntyre, the District adopted a Supplemental Money Purchase Pension Plan, pursuant to Internal Revenue Code Section 401 (a), at Mr. McIntyre's request. Other than the cost for tax counsel to prepare and provide the necessary documentation, the Plan was essentially at little or no cost to the District. Mr. McIntyre had agreed that the District would reduce his approved salary by an amount equal to the contribution into the Plan. The Plan was designed solely for his use and benefit, principally due to the very unique circumstances of his employment, namely his age, his limited expected tenure with the District, and a certain degree of financial independence on his part. Counsel has now prepared a brief "housekeeping" amendment to the Plan, which is required by Internal Revenue Code Regulations. It will have no financial bearing or impact on the District, and is required simply to comply with the Federal Law that all plans contain certain specified provisions. It is a recommendation of special tax counsel, and myself, that this amendment be adopted. This office is inquiring with Mr. McIntyre as to the desirability of continuing to maintain the Plan, and will advise the Board if there is any contemplated change. TLW:jlo \177892\1 HOMAS L. WOODRUFF GENERAL COUNSEL Bookpage45 RESOLUTION NO. OCSD 03-_ AMENDING DISTRICT'S EXECUTIVE MONEY PURCHASE PENSION PLAN AND TRUST A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT APPROVING SECOND AMENDMENT TO THE DISTRICT'S EXECUTIVE MONEY PURCHASE PENSION PLAN AND TRUST WHEREAS, the Board of Directors of District, on October 28, 1998, approved an Executive Money Purchase Pension Plan and Trust, as authorized by United States Internal Revenue Code Section 401 (a); and WHEREAS, the approved Plan made no provision for giving benefits and service credits for military service; and WHEREAS, District desires to amend its Plan to provide benefits and service credits for military service by eligible employee participants. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Section 10.5 of Article 1 O of the District's Executive Money Purchase Pension Plan and Trust is hereby added to read: "Notwithstanding any provision of the Plan to the contrary, benefits and service credits with respect to qualified military service shall be provided in accordance with Code Section 414(u)." Section 2: Section 2.6 of Article 2 of the District's Executive Money Purchase Pension Plan is hereby added to read: "Notwithstanding the foregoing, for Plan Years beginning after January 1, 2001, Compensation paid or made available during such Plan Years shall include elective amounts that are not includible in the gross income of the Employee by reason of Section 132(f)(4) of the Code." Section 3: Section 5.4 of Article 5 of the District's Executive Money Purchase Pension Plan is hereby amended by deleting the second sentence thereof in its entirety. PASSED AND ADOPTED at a regular meeting of the Board of Directors held December 17, 2003. Chair ATTEST: Board Secretary Book page 46 FAHR COMMITTEE Meeting Date To Bel. of Dir. 12/10/03 12/17/03 AGENDA REPORT Item Number Item Number Orange County Sanitation District FROM: Carol Beekman, Communications Services Manager Originator: Dionne Kardos, Public Information Specialist FAHR03-108 SUBJECT: CORPORATE IDENTITY AND PUBLIC AWARENESS PROJECT GENERAL MANAGER1S RECOMMENDATION Authorize the General Manager to solicit Requests for Proposal and subsequently award a Consultant Services Agreement for Corporate Identity and Public Awareness Project, Specification No. CS-2003-162BD, in an amount not to exceed $325,000. SUMMARY Staff recommends seeking a qualified firm or consultant team to conduct customer awareness and perception surveys to gather baseline information; review and make recommendations to OCSD's current Corporate Identity System; and implement an educational marketing campaign to promote a positive agency image and identity to the general public and target audiences in OCSD's service area. Part of the assessment of the OCSD's Corporate Identity System will be to determine if the political will of stakeholders would embrace a name/identity change and if the agency is equipped-financially and from a human resources standpoint-to undergo a name/identity change that will need to be implemented throughout the entire agency. The goal of this project is to establish a corporate identity system that clearly communicates the Orange County Sanitation District's functions and vision. Project objectives include: • Increase public awareness of who we are and what we do • Have the public perceive us as the essential service we are • Position ourselves within the community • Reinforce our positive messages • Determine the needs and expectations of the community • Increase stakeholder involvement This project is broken into two phases. Phase 1 research work is estimated to begin in March 2004, for a period of four months from Notice to Proceed. The work period for Phase 2 is estimated to start in Fiscal Year 2004-05 starting July 1, 2004 through June 30, 2005. Phase 2 work deliverables are dependent on outcomes of Phase 1, pending approval to proceed if a change to OCSD's name/identity is recommended. G:\wp.cttalagenda\FAHRIFAHR2003\ 1203\03-1 OS.Corporate Identity .doc Revised: 06/04/03 Book page 47 Page 1 PRIOR COMMITTEE/BOARD ACTIONS None. This project was highlighted in the OCSD Communications Services Strategic Plan for Fiscal Year 2003-04, that was received and filed at the October 8, 2003 FAH R Committee Meeting and at the October 22, 2003 Board Meeting. PROJECT/CONTRACT COST SUMMARY Phase 1 is in the current fiscal year's budget for $125,000 in the Contractual Services category for the Communication Services Division. Expenditures during FY 2004-05 for Phase 2 work are estimated to be $200,000. BUDGET IMPACT D This item has been budgeted. ~ This item has been budgeted, but there are insufficient funds. (PHASE 1 work only: in Section 6, on page 12) D This item has not been budgeted. D Not applicable (information item) ADDITIONAL INFORMATION See attachment ALTERNATIVES No alternatives are proposed CEQA FINDINGS N/A ATTACHMENT DRAFT Scope of Work for the Corporate Identity and Public Awareness Project CB:dk G :\wp.dta\agenda\FAHRIFAHR2003\ 1203\03-1 OS.Corporate Identity.doc Revised: 06/04/03 Bookpage48 Page 2 DRAFT 12/01/03 REQUEST FOR PROPOSALS (RFP) __ Corporate Identity and Public Awareness Project Orange County Sanitation District P.O. Box 8127 Fountain Valley, CA 92728-8127 (714) 962-2411 www.ocsd.com Bookpage49 Statement of Work RFP ATTACIThffiNT A Statement of Work Corporate Identity and Public Awareness Project Table of Contents 1.0 Summary ............................................................................................................................ ·-· ......... 2 2.0 Background of the Orange County Sanitation District.. ............................................................... 2 3.0 Current Organizational Structure .................................................................................................. 2 4.0 Problem Statements ....................................................................................................... -............... 3 5.0 Goal and Objectives of Project ..................................................................................................... 3 6.0 Project Time frame ........................................................................................................................ 3 7.0 Phase 1 Qualitative and Quantitative Research and Assessment ................................................. 3 Conduct Research Studies ........................................................................................................ 3 Establish Customer and Stakeholder Baseline Information .................................................... .4 Establish Strategic Positioning ................................................................................................ 4 Review of OCSD's Current Corporate Identity System ......................................................... .4 Assessment -No Name/Identity Change ............................................................................... .4 Assessment -Name/Identity Change is Recommended ......................................................... .4 8.0 Phase 2 Roll out ............................................................................................................................. 4 Rollout -No Name/Identity Change ....................................................................................... 4 Rollout-Name/Identity Change is Recommended ................................................................. 5 9.0 Deliverables .................................................................................................................................. 5 Reports and Proposals ................................................................. -............................................ 5 Final Logo/Identity Artwork (if applicable) ............................................................................ 5 Corporate Identity Standards Manual ....................................................... _ ............................... 5 10.0 General Requirements .................................................................................................................. 5 Project Management ................................................................................................................ S Meetings and Presentations ...................................................................................................... 5 Progress Reports ....................................................................................................................... 6 Billing Requirements ............................................................................................................... 6 Additional Requirements and Information .............................................................................. 6 Project Calendar ....................................................................................................................... 6 Al of6 OCSD/GM/COM130/CB:dk M:\Graphics\DOCS\Corp ID Project 2003\SOW _Corp1Dstudy_l203_finaldraft.doc Book page 50 DRAFT 12/01/03 1.0 Summary RFP ATTACHMENT A Statement of Work The Orange County Sanitation District (OCSD) is seeking a qualified firm or consultant team to conduct customer awareness and perception surveys to gather baseline information, review and make recommendations to OCSD's current Corporate Identity System, and implement an educational marketing campaign to promote a positive agency image and identity to the general public and target audiences in OCSD's service area. 2.0 Background of the Orange County Sanitation District The Orange County Sanitation District (OCSD) is a public agency responsible for regional wastewater collection, treatment and disposal from homes, businesses and industry in Orange County, California. Established in 1954, OCSD is the third largest wastewater treatment discharger west of the Mississippi River. OCSD owns and operates two wastewater treatment facilities and a 650-rnile long sewer collections system. OCSD provides services to approximately 2.3 million people in 21 cities and three special districts in the northern and central portions of Orange County by treating 240 million gallons per day of wastewater. OCSD serves approximately 92 percent of the County's population with a service area of approximately 471 square miles, or 59 percent of the County. OCSD vision states, "to maintain world-class leadership in wastewater and water resource management." The primary goals of the OCSD wastewater management program are to protect Orange County's most valuable resources -the Santa Ana River Watershed and the Pacific Ocean. Each day, OCSD employees, working as environmental stewards, control air emissions, work to conserve and recycle natural resources and monitor the impacts of wastewater discharge on marine life. In 1995, OCSD changed its logo identity to the current one used today. The logo includes the words "protecting the environment." In July 1, 1998 the districts consolidated, and the agency's name was officially changed from the County Sanitation Districts of Orange County to the Orange County Sanitation District. For additional background information and current news, please reference our website at ,vwv:.ocsd.com and attached OCSD Communications Services Strategic Plan, Fiscal Year 2003-04. 3.0 Current Organizational Structure OCSD is governed by a 25-member Board of Directors that is comprised of representatives from 21 cities, unincorporated areas of the County and three special districts, including mayors of cities, members of city councils, directors of independent special districts, and one member from the Orange County Board of Supervisors. OCSD employs approximately 550 employees in seven departments -General Management, Finance and Purchasing, Human Resources, Technical Services, Engineering, Operations and Maintenance, and Information Technology. The departments are broken down into 22 divisions that perform a variety of different functions. OCSD employees can be generally categorized into four different groups as follows: Approx. Employee Group Number Examples of Job Titles Management & Supervisory 80 Directors, Managers, Supervisors, Foremen Professional 180 Engineers, Accountants, Buyers, Analysts, Scientists, Specialists Operations & Maintenance 185 Operators, Mechanics, Electricians, Welders, Builders, Technicians Support Personnel 105 Inspectors, Assistants, Secretaries, Aides, Clerks Also On-site: Consultants/Contractors -Engineers, Construction Workers, Program Managers Outsourced Services -Security Guards, Groundskeepers, Janitors A2of6 OCSD/GM/COM130/CB:dk M:\Graphics\DOCS\Corp ID Project 2003\SOW _Corp1Dstudy_l203_finaldraft.doc Book page 51 DRAFT 12/01/03 RFP ATTACHMENT A Statement of Work OCSD's administrative office is located at Reclamation Plant No. 1 at the intersection of the Santa Ana River and the 405 Freeway in Fountain Valley, and its Wastewater Treatment Plant No. 2 is located offBrookhurst Street near Pacific Coast Highway in Huntington Beach. 4.0 Problem Statements OCSD has been in operation well over 50 years in the same location. But does the public we service know who the Owuge County Sanitation District is and what services we provide? Can the public recognize our logo? Does the public think we offer trash pickup and that we are part of the Cou11ty? How well has OCSD educated the public on how vital our sewers and treatrnenl plants are to the-well-being of everyone, providing reliable service 24/7, protecting public health and preserving th.e ocean environment? Do they understand our position of being the third largest wastewater treatment plant wost of the Mississippi River? Do they know alJ the services we provide the environmental stewardship projects we are involved in, and our commitment to protecting water, land, air and energy resources? Does OCSD's current identity system portray our vision and operating philosophy? Is OCSD only portrayed to the public through local news articles, voiced only by a small minority of our service area? OCSD's primary audience for this project is its service area customers: 80% residential -homeowners, apartment dwellers, and _0% busmess and i.udustry,owners who pay permit fees (othertarget audiences listed in attached OCSD Communications enrfce$ tra1egic Plan, Fis,cal Year 2003-04). However, OCSD has indirect contact with its residential customers, who are billed for their sewer user fees twice a year as a line item on their property tax bill. A newsletter or informational piece is not mailed with the "bill" explaining what their money is paying for and the services we provide. We have not conducted comprehensive, benchmark research on a large area of our service area and target audiences to find out the answers to these most basic questions, "does the public know who we are and what we do, and how do they currently perceive OCSD and our services/roles to the community." Current limited reseai•ch that w as conducted is noted on page 5 and 6 of the attached OCSD Communications Services Strategic Plan, Fiscal Year 2003-04. 5.0 Goal and Objectives of Project The goal of this project is to esJablish a corporate identity system that clearly communicates the Orange County Sanitatmn District s functions and vision. Project objectives include: • Increase public awareness of who we are and what we do • Have the public perceive us as the essential service we are • Position ourselves within the community • Reinforce our positive messages • Determine the needs ;;ind expectations of the Community • Increase stakeholder i:nvolvernent 6.0 Project Timeframe This project is broken inl'o two phases. Phase l research work is estiniated to begi n i.u March _Q04, for a period of four months from Notice to Proceed. The work period for Phase _ is estimated to start in OCSD Fiscal Year 2004-05 starting July I. 2004 through June 30, 2005. Pha e 2 work deliverables are dependent on outcomes of Phase l , and pending approval to proceed if a change to OCSD's name/identity is recommended. 7 .0 Phase 1 Qualitative and Quantitative Research and Assessment -Tasks and Deliverables 7 .1 Conduct Research Studies of: • OCSD's service area demographics and ethnic groups. • OCSD as referenced in the media, including past and current events from news articles, technical journals, broadcasts and OCSD press releases. • Peer review of OCSD to si milar wastewater treatment agencies or publicly-owned treatment works by: (1) size, (2) cou nty demographics, and (3) located in California. Include information on: -Target markets and messages A3 of6 OCSD/GM/COM130/CB:dk M:\Graphics\DOCS\Corp ID Project 2003\SOW _CorpIDstudy_l203_finaldraft.doc Book page 52 DRAFT 12/01/03 RFP ATTACHMENT A Statement of Work -Marketing effectiveness programs ( awareness tracking, other effectiveness measurements) -Branding strategies and treatments 7 .2 Establish Customer and Stakeholder Baseline Information -on customer awareness and image of OCSD. It shall cover, but not necessarily be limited to identity, image and awareness ofOCSD, perceived strengths and weaknesses, public information/education efforts, and communication channels (best ways for OCSD to reach out). • External: conduct a minimum of four focus groups and 500 random telephone surveys with general public (customers) within OCSD's service area (specify how many cities, ethnic groups included), including representatives of other external OCSD target audiences. • Internal: conduct random surveys and one-on-one interviews with OCSD board members, general manager and employees to evaluate their opinion, and their perception of customer opinion, ofOCSD's image and identity. 7.3 Establish Strategic Positioning • Review OCSD's current business strategy and position, stakeholder perceptions and future direction of our agency. • Report analysis of research findings. 7.4 Review of OCSD's Current Corporate Identity System -Conduct an audit of OCSD's identity system and branding strategies. Work shall include compiling and reviewing all logos and name applications, project associations, and branded collateral materials/items that are under OCSD'sjurisdiction. A written recommendation of a strategy to increase consistency in brand connection between OCSD's services and outreach, projects and materials/items shall be submitted. Part of the assessment of the OCSD's Corporate Identity System will be to determine if the political will of stakeholders would embrace a name/identity change and if the agency is equipped-financially and from a human resources standpoint-to undergo a name/identity change that will need to be implemented throughout the entire agency. 7.5 Assessment-No Name/Identity Change • Create internal/external corporate identity standards manual. • Proposal for elements and schedule of a public awareness/marketing campaign to educate the community and continuously market OCSD messages. Proposal shall include cost, goals and objectives, duration, implementation plan, and plan for training and educating employees of key messages. The plan shall also include the means to evaluate campaign success with evaluation tool(s) to consider mediums used, · frequency, how it is reaching/targeting individuals, the saturation/coverage of service area, and means for public feedback to evaluate effectiveness. 7.6 Assessment-Name/Identity Change is Recommended • Layout process and work plan for developing a new name and identity, and retain agreement to proceed. • Identify elements that would need to be changed with new identity, propose priorities, forecast length of time it would take and estimate the costs (changes and costs not included in this project's scope). • Submit proposal and timeframe for new identity rollout campaign. It shall include, but not necessarily be limited to internal and external workshops, examples of new stationary system, new collateral materials, PSAs and advertising and press kit/media materials. 8.0 Phase 2 Rollout -Tasks and Deliverables 8.1 Rollout -No Name/Identity Change • Implement marketing campaign. • Conduct a minimum of four follow-up focus groups and 500 telephone surveys to measure change in awareness of target audiences. A4of6 OCSD/GM/COM130/CB:dk M:\Graphics\DOCS\Corp ID Project 2003\SOW _Corp1Dstudy_1203Jmaldraft.doc Bookpage53 DRAFT 12/01/03 8.2 Rollout-Name/Identity Change is Recommended • Name and logo development. • Conduct presentations, selection procedure and approval process for new identity. • Conduct trademark search on new name/tagline and/or logo artwork. • Finalize final artwork. • Create internal/external corporate identity standards manual. • Develop launch plan and initial rollout campaign for new identity. • Implement roll out campaign of new identity internally and externally. RFP ATTACHMENT A Statement of Work • Conduct a minimum of four follow-up focus groups and 500 telephone surveys to measure change in awareness of target audiences. 9.0 Deliverables 9.1 Reports and Proposals-in MS Word or PDF format that includes an executive summary, separate reviews of findings for each element of the Statement of Work tasks, and appendices with raw or supporting documentation. 9.2 Final Logo/Identity Artwork (if applicable)-in PC-formatted CorelDraw or Illustrator vector files, other file types to be specified by OCSD graphics staff. 9.3 Corporate Identity Standards Manual-in MS Word or PDF format that includes, but is not limited to: • Name identity information. • Logo history/background and meaning. • Proper usage of name, acronym and references. • Proper usage of logo for various media applications. • Graphic design standards. • Boilerplate language (typical and news release versions). • Color palette and typography specifications. 10.0 General Requirements 10.1 Project Management -One project manager shall be designated as the key contact person to OCSD. This person will serve as the day-to-day contact and overalJ program coor.dinator. The projectma11ager shall have the authority to make commitments and decisions that are binding to the consulting firm/team. The project manager for OCSD is Carol Beekman, Communications Division Manager. OCSD will assign a specified staff member(s) as the day-to-day contact during this project. 10.2 Meetings and Presentations -consultant will conduct regular standing meetings at OCSD's facilities and will specify how OCSD will be kept updated on project progress including work plan schedules and contact reports. • Project manager and project team to conduct a kickoff meeting with OCSD project staff within two weeks of Notice to Proceed. Include objectives, preliminary schedule and milestones for project. • Project manager to provide meeting agendas and progress reports prior to each meeting, and provide meeting minutes within three business days after meeting. • Project manager and/or project team to be available at OCSD's convenience for contingency meetings to address unforeseen events. • Project manager to give at least two formal presentations (one presentation to introduce project team members and firm/team's background, and one presentation on final project findings and recommendations) at a regularly scheduled OCSD department heads and general manager meeting (prescheduled every Monday morning between 8 AM and noon). A5 of6 OCSD/GM/COM130/CB:dk M:\Graphics\DOCS\Corp ID Project 2003\SOW _Corp1Dstudy_l203_finaldraft.doc Book page 54 DRAFT 12/01/03 RFP ATTACHMENT A Statement of Work • Project manager to be available at OCSD's convenience to give at least two formal I-hour presentations at a regularly scheduled OCSD Board Committee and/or Board of Directors Meeting (meetings prescheduled each month on Wednesday night between the hours of 5 PM and 9 PM). 10.3 Progress Reports-submit a formal monthly status report in MS Word. This document will include an executive summary on project's progress and status, detailed status on the work accomplished for that period, problems encountered, anticipated problems, budget update, work to be accomplished and future milestones. 10.4 Billing Requirements -invoices shall include detailed breakdown of all activities itemized and showing hours for all staff services, including administrative and support, by task with totals for each. Subconsultants work shall be broken down and shown in the same manner. 10.5 Additional Requirements and Information -copies and examples ofOCSD's corporate identity system and collateral material will be provided upon award of contract. A tour of both treatment plant facilities will provided to the consultant firm/team upon request. All documents submitted must be in either PDF format, MS Word, MS Excel, MS PowerPoint or MS Project format, unless specified otherwise. 10.6 Project Calendar-the days identified within this Scope of Work are workdays. Workdays are defined as all days that are not Saturday, Sunday, or legally observed holidays. Meetings with OCSD staff shall be scheduled from Monday through Thursday between the hours of 8 AM and 4 PM ( exception is operations staff who maintain plant operations 24/7 and work a rotated 12-hour shift) and shall conform to OCSD work schedules. OCSD review periods shall not include legal observed holidays. A6of6 OCSD/GM/COM130/CB:dk M:\Graphics\DOCS\Corp ID Project 2003\SOW _CorpJDstudy_l203_finaldraft.doc Book page 55 DRAFT 12/01/03 FAHR COMMITTEE Meeting Date 12/10/03 AGE NDA REPORT Item Number FAHR03-109 Orange County Sanitation District FROM: Gary G. Streed, Director of Finance SUBJECT: FEES FOR PROPERTIES ANNEXING TO THE DISTRICT GENERAL MANAGER1S RECOMMENDATION To Bel. of Dir. 12/17/03 Item Number Adopt Ordinance No. OCSD-21, adopting fees, procedures and policies concerning annexation of properties to the District and repealing Ordinance No. OCSD-03. SUMMARY The current Ordinance governing annexations was adopted in 1998 and needs to be updated. It contains different rates for each of the old Revenue Areas and it includes prior adjustments based upon cost of living changes. A new Ordinance has been prepared in accordance with the attached staff report. The proposed annexation fee includes two types of charges, based upon acreage. The first is a $1,235 charge for net current assets in order to place the annexing property on equal historical footing with existing properties. The second is a $3,000 charge that will generate interest income equivalent to the property tax allocation from existing properties. In addition to this total of $4,235 per acre, annexing properties will pay the appropriate capital facilities capacity charge (CFCC). PRIOR COMMITTEE/BOARD ACTIONS The last Board action related to annexation fees was during the consolidation in July 1998. The current fees range from $3,908 to $5,830 per acre. PROJECT/CONTRACT COST SUMMARY Staff estimates that there are approximately 8,250 acres within Orange County and adjacent to our service area boundaries. If all of these properties were to annex to the District, we would receive approximately $35 million. When the properties are developed they will also pay appropriate CFCCs, and when they are occupied and connected to the sewer they will pay annual user fees. The amount of CFCCs and user fees cannot be determined at this time as the ultimate use of the property is unknown. 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. [8l Not applicable (information item) G:\wp.dta\agenda\FAHR\FAHR2003\ 1203\03-109.Annexation Fees Ordinance.doc Revised: 06/04/03 Bookpage56 Page 1 ADDITIONAL INFORMATION Please see attached staff rep0rt and draft ordinance ALTERNATIVES Alternatives are discussed in the staff report CEQA FINDINGS N/A ATTACHMENTS 1 . Staff Report 2. Draft Ordinance O:\lvp,dta\agenda\FAHR\FAHR2003\1203\03-109.At,nexatidn Fees OrdlMnCe,doc Revlaed; 06I04Jo3 Bookpage57 Page 2 December 10, 2003 STAFF REPORT Annexation Fees BACKGROUND Annexation fees are the fees paid by the owners of property outside of the District's service area that wish to now be inside the service area. Fees are required for two principal reasons. All properties that have been within the service area have contributed property taxes to the District. Prior to the passage of Proposition 13, the Districts levied separate property taxes for operations, capital improvements and debt service. Subsequently, a portion of the 1 % basic levy has been allocated to the District. Properties that have been outside of the District have not paid, or had allocated, any of their property taxes to the District. Thus, these properties have not contributed to any of the facilities or other assets of the District. One of the objectives of an annexation fee is to place the annexing properties as closely as possible to the relative financial position they would have been in had the property always been within the District service area. This could be interpreted to mean that an annexing property should pay an amount equal the present value of the accumulated property taxes that would have been paid since 1954. Future property taxes are also an issue for annexing properties. Current law does not allow the agency that the properties are annexing into to automatically participate in the property tax allocation. A property tax exchange agreement must be negotiated with each of the agencies that had been receiving a share of the taxes. This means that each of them must agree to a lesser share of the taxes in order for the District to receive any. These agreements have proven to be difficult to impossible to negotiate. DISCUSSION There are three basic alternatives for calculating an annexation fee that put an annexing property in approximately the same financial position as other properties, depending on how that is defined. For the sake of simplicity, these alternatives can be called "net equity," "back taxes" and "net current assets." Each of these methods also requires payment of a connection fee or Capital Facilities Capacity Charge (CFCC) before the property can use the District's sewerage system. The "net equity" method and variations on it are based upon the theory that the annexation property should buy into the current fiscal position of the District. This buy-in is based upon the most recent financial statements and is easily verified. The financial position can include upon the cost of fixed assets or the cost can be reduced by accumulated depreciation to reflect use of those assets. Whichever valuation of net equity is used, that value is divided by the total OCSD -P.O. Box 8127 -Fountain V lllly. CA 9'.!728-8127 -(714) 96'.!-2411 Bookpage58 Annexation Fees Page 2 of 3 December 10, 2003 number of acres in the service area to determine an annexation fee per acre. This method could provide the appearance of a double charge since the CFCC paid at the time of connection also includes a compor:ient for the value of the sewerage system and equipment. Of course properties that have always been within the service area must also pay the CFCC and those properties have always contributed somewhat to net equity. The "back taxes" method seems on the surface to put properties that annex into the same fiscal position as properties that have always been in the service area, but that have not connected to the system. To use this method the assessed value of the property for each year since 1954, the average property tax rate for each year prior to 1978 and property tax allocation factor for year must be known for each annexation. This information is not available at the District and is not expected to be available ·from the County Assessor's Office. User fees would be excluded from this calculation as those are fees for service which the annexing properties did not receive and should not have paid. The "net current assets" method omits the value of fixed assets and long-term liabilities from the calculation. The theory behind omitting these costs is that the CFCC that will be paid when the property connects to the system will include the proper charge for fixed assets, or capacity in the system. The remaining "net current assets" would basically be cash and inventories that will reduce future user fees. So far the discussion of the three alternative methods has focused only on the value or worth of past property tax payments or allocations. Future property tax allocations are also an issue. Although property values may rise because sewer service is available and although the property owner will pay the same 1 % basic levy as other properties in the District, the District will not receive any property tax allocation. Property tax exchange agreement negotiations fail routinely because the District has the ability to levy a user fee while other "tax-supported" agencies do not. In fact, this very issue is at the heart of the formation of District 13 in 1985; the County refused to share any of their historical property tax allocation. The County actually has a policy not to share historical property taxes with new enterprise districts. There are two ways to provide for the future property taxes that will not be shared. One way is to include them in the sewer user fees. Because the average property tax allocation to the District is about 2.8% of the 1 % basic levy, these foregone taxes are relatively minor and the impact on the average user fee may be considered to be relatively insignificant. For example, the District's 2003-04 property tax allocation will be approximately $150 per acre. The user fee impact of this method is quite small for an individual property annexation. There are approximately 8,250 acres within the County and adjacent to our service area that are not currently annexed. The largest of these are the Bolsa Chica, the Seal Beach Naval Weapons Station and Orange Park Acres. If we assume the current average property tax of $156 per year per acre for each of these 8,250 acres, then the impact on the user fee would be about $1 .40 for a single -family residence in order to generate the equivalent $1,287,000. Another solution is to collect from the owner of the annexing property an additional amount that would earn annual interest approximately equal to the property taxes that are lost. For example, the 2003-04 property tax allocation for the District is $44 million and the service area is approximately 282,000 acres. This means that the average property tax per acre is about $150 per year. Assuming an average annual interest rate of 5%, it would take a principal amount of $3,000 to generate $150 per year. This method would allow us to use our standard annexation Book page 59 Annexation Fees Page 3 of 3 December 10, 2003 fee as a basis for determining the in-lieu charges for providing service to areas outside the County that are served by contract. RECOMMENDATION Staff has considered the discussion above, along with the discussion of Capital Facilities Capacity Charge alternatives and Sewer Service User Fees, and the histories of each of these charges. We believe that the calculation of Annexation Fees and CFCCs must be coordinated to ensure that no properties pay twice for the same facilities, that all new properties to the District pay their fair share for the assets provided by older properties, that each new user of the sewer system, no matter when they became members of the District, pays its fair share of the cost of the facilities that they will use, and that all users pay their fair share of ongoing operations and maintenance expenses. Staff recommends that the Annexation Fee be made up of two components; a fee for net current assets and a fee to provide equivalent property tax allocations. The property's share of fixed assets will be paid through the CFCC, which is based upon the type of development and the resultant demands upon the sewerage system. Based upon the financial report for June 30, 2003, and the 2003-04 budget, these two parts would be $1,235 and $3,000 for a total of $4,235 per acre. The fee could be revisited each year and a new Ordinance adopted by the Board, or it could be revisited whenever the Capital Facilities Capacity Charge is reconsidered. The current annexation fees range from $3,908 to $5,830 per acre but they are not firmly anchored in the balance sheet, the income statement or the budget. GGS G:\wp.dta\fin\21 0\CRANE\FAHR\FAHR2003\DEC\Staff Report -annexation fees 121003.doc Book page 60 ORDINANCE NO. OCSD-XX AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING FEES, PROCEDURES, AND POLICIES CONCERNING ANNEXATIONS OF TERRITORY TO THE DISTRICT; AND REPEALING ORDINANCE NO. OCSD-03 WHEREAS, The Board of Directors of the Orange County Sanitation District ("District") has previously adopted Ordinance No. OCSD-03, adopting fees, procedures and policies concerning annexations of territory to the District, which Ordinance is presently in full force and effect; and, WHEREAS, for purposes of continued efficiency and effectiveness of the District's operations, preservation of the public health and safety, and in order to continue the provision of wastewater collection, treatment and disposal services, it is the intent, by adoption of this Ordinance, to continue said procedures and policies in effect, without interruption; and, WHEREAS, the Board of Directors of the District has received a management report, including financial needs of the District, and wishes to reaffirm the policy of imposing annexation fees when new territory is annexed to the District, and to adopt findings supporting the amount of the fees adopted pursuant to this Ordinance. The Board of Directors of Orange County Sanitation District does hereby FIND: A. That a comprehensive Master Plan of Capital Facilities entitled, "Interim Strategic Plan Update -1999," which includes detailed financial and engineering reports, has been prepared, approved and adopted by the Boards of Directors of the Districts identifying the required future development of District facilities, including the financial projections for providing sewer service to all properties within the District's service areas; and, B. That the financial and engineering reports of the Interim Strategic Plan have been made available to the public and have been subject to noticed public hearings, all in accordance with the provisions of law; and, C. That the revenues derived under the provisions of this Ordinance will be used for the acquisition, construction, reconstruction, maintenance, and operation of the wastewater collection, treatment and disposal facilities of the District; to repay principal and interest on debt instruments, or to repay federal or state loans for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves; and, 2090-300 63844_1 1 Book page 61 D. That the properties upon which the fees established by this Ordinance are levied, will, subsequent to payment of an additional Capital Facilities Capacity Charge, discharge wastewater to the District's collection, treatment and disposal facilities; that the costs of operating and maintaining said facilities have constantly increased due in part to increased regulatory requirements to upgrade the treatment process; and that said costs will exceed the amounts of any ad valorem tax revenues derived from said property; and, E. That the District will not receive any tax exchange from said annexed properties because of an agreement with the County of Orange under which there is no tax exchange for newly-annexed property; and, F. That the annexation fees imposed by authority of this Ordinance do not exceed the estimated amount required to provide access to the sewer service for which the fee is levied, as provided in California Constitution Article XIIID; and, G. That the fees established by this Ordinance will not necessarily result in an expansion of facilities to provide for growth outside the existing service area. The collection of these annexation fees will not result in any specific project, and will not result in a direct physical change in the environment; and, H. That the fees adopted by this Ordinance are established upon a rational basis between the fees charged each property that is annexing, and the service and facilities provided to each annexed property by the District, a portion of which are necessary to replace the loss of ad valorem property taxes to the State General Fund as a result of state legislative action on September 2, 1992 and in subsequent years; and I. That the fees adopted by this Ordinance are not imposed as a condition of approval of a development project, as defined in California Government Code Section 66001, and do not exceed the estimated reasonable cost to provide the sewer service for which the fee is levied, as provided in Government Code Sections 66013 and 66016 and California Constitution Article XIIID; and, J. That the adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act from further environmental assessment pursuant to the provisions of California Public Resources Code Section 21080(b)(8), and 14 California Code of Regulations Section 15273(a). NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, does hereby ORDAIN: Section 1: That the purpose of this Ordinance is to establish fees required to be paid by property owners for the annexation of property to the District. Said fees are in lieu of property taxes not allocated to the District while the property was outside of 2090-300 63844_1 2 Book page 62 the District and in lieu of future property tax allocations through a Tax Exchange Agreement. Revenues derived under the provisions of this Ordinance may be used for the acquisition, construction, reconstruction, maintenance and operation of the wastewater collection, treatment and disposal facilities of the District; to repay principal and interest on debt instruments; or to repay federal or state loans issued for the construction and reconstruction for said sewerage facilities, together with costs of administration and provisions for necessary reserves. Section 2: That the proponents of any application for annexation of any territory to the District are requesting that the annexed property become a part of the District's jurisdiction, and that by doing so, they become entitled to receive the benefits of having access to the use of the extensive capital facilities system and to receive the District's service, and shall, as a condition to securing approval of the Board of Directors of the District to such annexation, agree to and comply with the following requirements: A. Payment of all administrative costs incurred by the District in processing the annexation. B. Payment of annexation acreage fees, as follows: Beginning January 2004, the sum to be paid for annexation of territory to the District for which no tax exchange is negotiated between all affected agencies is hereby fixed: Consolidated Revenue Area Nos. 1 -13 $4,235 per acre (Note that fees are to be calculated to the 1/10th of an acre) Revenue Area No. 14 N/A (Note that fees may be due to the Irvine Ranch Water District) C. The annexed territory shall be subject to the terms and conditions of all Ordinances and Resolutions pertaining to fees for connection to the District's facilities and use of said facilities, including but not limited to, industrial discharge permit fees, capital facilities capacity charges, and sewer service user fees. D. The annexed territory shall be annexed into an appropriate local sewering agency, or obtain the written approval of the designated local sewering agency, such as a city, for the purpose of maintaining and operating the local sewer system, including pumping stations and force mains. E. The territory, upon annexation, shall be subject to all ad valorem taxes required for the retirement of the existing and future bonds of the District and all other applicable ad valorem taxes of the District. Section 3: The General Manager is hereby authorized and directed to establish procedures and fees for processing annexation of territory to the District. Said procedures may include provisions for collection by the District of fees charged by other 2090-300 63844_1 3 Bookpage63 local and state agencies involved in the annexation process for submittal to said agencies by the District on behalf of the annexation proponent. The District's Staff is hereby directed to provide the proponents of any proposed annexation a copy of procedures and fee schedules established pursuant to the authority of this Section. Section 4: That the Staff be directed to transmit to the Orange County Local Agency Formation Commission a certified copy of this Ordinance. Section 5: If any of the provisions of this Ordinance or the application to any persons or circumstance are held invalid by order of Court, the remainder of this Ordinance, or the application of such provision to other persons or other circumstances, shall not be affected. Section 6: This Ordinance is enacted as an urgency measure to take effect immediately in order to fulfill the on-going obligations of the District. Section 7: That the provisions of this Ordinance shall become effective January 1, 2004, and shall apply to all annexations to the District on or after said date. Section 8: That Ordinance No. OCSD -3 is hereby repealed. Section 9: That the Secretary of the Board shall certify to the adoption of this Ordinance and shall cause a summary to be published in a newspaper of general circulation as required by law. PASSED AND ADOPTED by the affirmative vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held ____ _ Chair, Board of Directors Orange County Sanitation District ATTEST: Secretary of the Board of Directors Orange County Sanitation District Thomas L. Woodruff, General Counsel 2090-300 63844_1 4 Book page 64 FAHR COMMITTEE Meeting Date To Bel. of Dir. 12/10/03 12/17/03 AGENDA REPORT Item Number Item Number FAHR03-110 Orange County Sanitation District FROM: Gary Streed, Director of Finance SUBJECT: CAPITAL FACILITIES CAPACITY CHARGES (CONNECTION FEES) MISCELLANEOUS CHARGES, SANITARY SEWER SERVICE CHARGES AND PERMIT USER CHARGES FOR 2003-04 GENERAL MANAGER'S RECOMMENDATION Adopt Ordinance No. OCSD-22, reaffirming sanitary sewer service charges; adopting capital facilities capacity charges; adopting miscellaneous charges and fees relating to industrial discharger, source control permittees and wastehaulers; and repealing Ordinance No OCSD-20. (Must be approved by a 2/3 vote of the entire Board of Directors.) SUMMARY The proposed Ordinance includes changes only to the Capital Facilities Capacity Charges (CFCC) and two additions to the schedule of non-compliance fees for permit users. CFCCs, or connection fees, are one-time fees collected in order to cover the costs of providing sewerage facilities to serve a property. Today, connection fees are collected for the District by member cities and sanitary districts when building permits are issued. As a part of the Sewer User Fee discussion in May, staff proposed increases in the CFCC for 2003-04. The staff proposal was based upon the methodology adopted subsequent to the Rate Advisory Committee work and reflected the recently completed Validated Capital Improvement Program. The Directors deferred any action on increased rates as they wanted to concentrate their focus on the Sewer User Fees. This report is the final in a series that set the stage for a CFCC rate change. Previous reports provided the background that is required to understand the existing CFCC program, addressed the concerns that the Directors raised and discussed the theory of some of the methods for calculating a CFCC and their impacts. The proposed CFCC for the benchmark 3-bedroom, single-family residence is proposed to increase from $1,820 to $2,890 to pay for capacity needed for future growth. Other CFCCs and the Supplemental CFCC charged some permit users will also increase. Additionally, the staff is recommending a small change to the fees for significant users with permits from our Source Control Division. A new fee is recommended to be levied against a firm that is considered to be "significantly non-compliant" (SNC) in order to G:\wp.dtalagenda\FAHR\FAHR2003\ 1203\03--11 0.CFCC Ordinance.doc Revised: 8/20198 Bookpage65 Page 1 recover District's costs associated with obtaining data and publishing the required notice. These fees are proposed to be $165 and $260. PROJECT/CONTRACT COST SUMMARY Capital Facilities Capacity Charges of $10.2 million were collected in 2002-03; approximately 6% of the District's revenue. Future amounts depend on the rates and the rate of new development. Had the proposed rate schedule been in effect for 2002-03, the total CFCCs would have been approximately $16.2 million. BUDGET IMPACT [8J 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 1 . Base CFCCs are determined by type of development and are calculated per 1 ,000 square feet of building for non-residential development and per unit for residential development. 2. Three categories of Commercial connection fees have been developed: low demand, average demand and high demand. 3. Significant Industrial Users (Class I Permit Users) are charged demand-based connection fees as a part of their ongoing annual use charges, in addition to the one-time, up-front charge. These fees will include an interest component. 4. Residential fees are tiered based upon number of bedrooms for single-family residential (SFR) and multi-family residential (MFR) development, as number of bedrooms is the best available indicator of number of residents. 5. Connection fees are collected by local sewering agencies at the time the building permit is issued, and they retain 5% of the fee. 6. Credit for demolished structures is granted as if fees for those structures had been paid under the current Ordinance. 7. Connection fees are charged for local agency facilities such as schools, city halls and libraries, as well as for state and federal facilities. ALTERNATIVES See enclosed Staff Report. G:\wp.dta\agenda\FAHR\FAHR2003\1203\03-11 0.CFCC Ordinance.doc Revised: 8/20198 Page 2 Book page 66 CEQA FINDINGS N/A ATTACHMENTS 1 . CFCC Staff Report 2. Important Parameters Affecting CFCCs, Revised 3. Current Capital Facilities Capacity Charges 4. Significantly Non-Compliant User Staff report GGS G:\wp.dta\agenda\FAHRIFAHR2003\1203\0~110.CFCC Ordinance.doc Revised: 8/20/98 Book page 67 Page 3 December 10, 2003 STAFF REPORT Capital Facilities Capacity Charge (CFCC) BACKGROUND Capital Facilities Capacity Charges are typically one-time fees paid by developers when building permits are issued. The fees are collected for the District by the member agency responsible for local sewers. For 2002-03, the total CFCC's collected amounted to just over $1 0 million; approximately 6% of the District's revenues. The current CFCC rates, structure and philosophy were adopted subsequent to the 1999 Strategic Plan and the Rate Advisory Committee process. When the rates were recalculated to incorporate the changes from the Interim Strategic Plan Update and the Validated Capital Improvement Program, the FAHR Committee asked that they be revisited. Among the Committee's concerns were whether new development would be expected to pay for additional capacity and whether the number of bedrooms was the appropriate basis for residential fees. Capital Investment Equalization Method Beginning with the "2020 Master Plan" which was adopted in 1989, the District's connection fee or CFCC has been computed using the Capital Investment Equalization Method. While the method and the theory have not changed, the costs that are included and the rates that result have changed. The basic theory is that all of the users in 2020 will have paid the same dollar amount for the facilities that exist in 2020. In 1999, this base fee was modified to reflect the differing demands from differing sizes of residential uses and differing types of non-residential users. The Capital Investment Equalization Method means that new users are required to pay for a share of existing facilities, existing current assets, future capacity, future improved treatment and future rehabilitation, refurbishment and replacement projects. Existing users will also pay a share though user fees, property taxes or previously paid connection fees. The simplified formula for computing the base rate can be shown as: (Existing Facilities -Depr + Future Facilities + RRR Projects) CFCC rate= (Existing Users + Future Users) OCSD -P.0.Box8127 -FountainValley.CA92728-8127 -(714)962-2411 Bookpage68 Capital Facilities Capacity Charge (CFCC) Page 2 of 4 December 10, 2003 In order to use this formula, residential and non-residential users must first be converted to "equivalent dwelling units." The flow, BOD and SS discharges from a three-bedroom single family residence are used to establish the number of EDUs. This is the formula that was used to calculate the CFCCs that were presented to the FAHR in May of 2003. After reviewing every project in the Validated CIP for the proper allocation to flow, BOD and SS, to residential and non-residential users and the impacts of wet weather infiltration and inflow, the result of this calculation was an increase in the SFR rate from $1,820 to $3,063; an increase of 68%. If these rates were to be adopted, then the total fees collected from "new growth" would be sufficient to cover the anticipated additional capacity projects. Variations on the Capital Investment Equalization Method Theme There is some latitude within the broad theory of the capital investment equalization method. One variation is that only the existing facilities and future additions should be included. This variation would remove the projected cost of future rehabilitation, refurbishment and replacement facilities from the CFCC and would have the RRR projects paid from annual user fees. Since all users of the system pay user fees on the basis of flow, BOD and SS, all users (existing and future) would then pay their fair share of these projects. Since the CFCC is expected to be revised approximately every five years when the Strategic Plan is updated, any RRR projects during the five years would move into the existing facilities category; increasing future CFCC rates. If this methodology were implemented, then the total fees collected from "new growth" would be approximately 80% of the anticipated additional capacity projects. Another variation could be to exclude the net current assets from the calculation. This exclusion could be in addition to excluding the RRR projects above, or in place of that. The rationale for excluding these costs is that they are not capital facilities; they are cash, investments, inventory, etc. Many of these current assets will be expended on operations and maintenance for the benefit of existing users. Those that are used for capital improvements will be included in existing net capital assets when the CFCCs are reconsidered with the future Strategic Plans. If this methodology were implemented, then the total fees collected from "new growth" would be approximately 60% of the anticipated additional capacity projects. Growth Pays for Growth Growth pays for growth is the shorthand way to express the belief that in order for new users to pay their fair share of capital improvement costs, they should pay for all of the new capacity faciHties. The thinking behind this is that we would incur almost all of the other capital improvement costs whether or not there are any new users. This could be called the incremental cost method. Existing current assets were obtained from current users and will be used for capital projects that benefit current users or for operations and maintenance expenses on current capital assets. Current capital assets were constructed with funds from current users and would be sufficient for current users' needs into the future. Future RRR projects will be funded by then current users through the user fee. The simplified formula for computing the growth pays for growth rate can be shown as: Book page 69 Capital Facilities Capacity Charge (CFCC) Page 3 of 4 December 10, 2003 CFCC rate= Future Facilities Future Users In order to use this method, it is necessary to know the projected cost of future facilities to provide both capacity and secondary treatment to future users as well as the number of future users. If this methodology were implemented, then the total fees collected from "new growth" would be exactly equal to the cost of the anticipated additional capacity projects. Bedrooms as Basis for Residential CFCCs One of the recommendations of the Rate Advisory Committee (RAC) was that the residential connection fee should be tiered to reflect actual or potential impact on the District's facilities. Prior to the RAC's work, there was only one rate for all types of residential connections. Consultants and staff analyzed census data and County Assessor's Office data to establish a correlation between some data point and sewer system demand. The data set with the best correlation was the number of bedrooms although other parameters, including number of bathrooms were considered. Sewer system demand is a function of population; the more people there are in a home, the higher the sewer system demand. While there are certainly exceptions, some of them notable, the number of people in a dwelling unit is more closely aligned to the number of bedrooms than to the number of bathrooms. Of course, this is not a perfect match and the closeness to actual varies over time. It would not be uncommon for a family of two to purchase a four-bedroom home, for the family to grow to four or more for several years, and then to become a family of two again after some time. During this period, the household impact on sewer system demand could go from below average to above average and back to below average. The intent of the CFCC basis is to match the fee with the potential average demand. Residential dwelling modifications sometimes lead to issues with this method of determining fees. A CFCC is due only when a building permit is requested for an additional bedroom. An additional bathroom does not require a fee. An additional den or office does not require a fee. There have been instances of plans being resubmitted after the fees are quoted and the revised plans show offices replacing bedrooms in the original plans. One could speculate that the closet might be added later, without a building permit. Staff is recommending that we accept this potential dishonesty as a cost of doing business. Our CFCC structure is based upon the number of bedrooms reflecting the potential sewer use. Changing the basis to bathrooms for building modifications will negate our existing structure. Including dens, offices, family rooms and other additional spaces as a basis is also counter to our original theory. We simply don't have the nexus established to use other than bedrooms. Sources of Future Flows The Interim Strategic Plan Update projects average daily flows of 321 million gallons in 2020. This will be an increase of 80 million gallons per day over the 241 million gallons per day flow at the time the Interim Strategic Plan was completed. Book page 70 Capital Facilities Capacity Charge (CFCC) Page 4 of 4 December 1 O, 2003 Twenty-four mgd is projected to come from SAWPA. SAWPA pays for capacity when needed based upon the average strength of their discharge for the prior year and the treatment and disposal plant portion of the CFCC; they already own sufficient collection system capacity. {Although SAWPA currently owns 13 million gallons per day of treatment and disposal capacity, and has a right to purchase another 17 million gallons per day, they were only discharging at the rate of 6 million gallons per day when the Strategic Plan was completed.) Essentially SAWPA pays the CFCC like other users. Twenty-six mgd is projected to come from the area served by the IRWD. The IRWD users do not pay OCSD a CFCC directly. Instead, IRWD pays a share of the monthly outlay for capital improvement projects based upon the IRWD share of total flow. Each year the accumulated payments are adjusted to reflect the current shares. Currently, IRWD uses and has paid for about 3% of the total treatment facilities. By 2020, this percentage is expected to increase to about 10%. During this period, IRWD will routinely purchase additional capacity at the actual cost to provide that capacity up to 32 million gallons per day. The remaining 30 mgd will come from new and existing users in the District's service area. This growth has been allocated to match the population, housing and employment projections from the Center for Demographic Research at California State University at Fullerton. These growth projections indicate that only 37% of the funds for capital improvements will come from CFCCs and the majority of funds will come from SAWPA and from IRWD. GGS G:\wp.dta\fin\21 0\CRANBFAHR\FAHR2003\DEC\Staff Report Conn Fee 12-03.doc Book page 71 A 2 3 4 5 6 7 B 2 3 4 5 6 7 8 9 10 11 C 1 2 3 4 5 6 7 Page 1 of 3 Important Parameters Affecting Capital Facilities Capacity Charges Revised November 26, 2003 Planning Parameters 1989 1999 2003 Master Plan Strat Plan Validated CIP Planning horizon 30 yrs 21 yrs 19 yrs CIP budget $1.48 billion $1.51 billion $2.38 billion Projected Flow 399 MGD 352 MGD 321 MGD Flow per household (EDU) 399 gpd 260 gpd 260 gpd Number of flow based EDUs 1,000,000 1,354,000 1,235,000 Flow per 1,000 sq ft for average commercial user 80gpd 150 gpd 150gpd Commercial 1,000 ft : SFR ratio 20% 58% 58% Growth Projections 2020-2000 2000 2005 2020 % Change Source Population, w/o OCSD 14 2,191,610 2,283,298 2,466,220 12.5% CDR Housing, w/o OCSD 14 723,299 732,729 768,848 6.3% CDR Employment, w/o OCSD 14 1,112,369 1,221,786 1,426,757 28.3% CDR Single Family Residences 427,007 454,000 6.3% 2020 quant OC Ass'r Multi Family Residences 239,310 254,000 6.1% OC Ass'r adj to keep Assessor Housing w/o 14 666,317 708,000 6.3% CDR ratio OC Ass'r 1,000 sq ft non-residential 446,108 572,000 28.2% constant OC Ass'r Flow from OCSD 14 (IRWD) 6 12 32 433.3% CDM ISPU Flow from SAW PA 6 15 30 400.0% CDM ISPU Flow w/o 14 & SAW PA 229 237 259 15.1% CDM ISPU Flow from all sources, MGD 241 264 321 34.9% CDMISPU Daily Flow Contributions 2000 Actual 2020 Prolectlons OC Assessor Average CDR Adj'd Percent Number of Daily Flow Number of Of Average Units or (Gallons) Average Units or Increased Propertv Use MGD 1,000 SQ ft Per Unit MGD 1,000 sq ft Flow Residential 111 427,000 260 118 454,000 8.8% Multi-Family Residential 43 239,000 182 46 254,000 3.8% Commercial 67 446,000 150 86 572,000 23.8% IRWD (OCSD14) 6 32 32.5% SAWPA 6 30 30.0% Wet Weather, Infiltration, Inflow 8 9 1.3% Average MGD total 241 321 100.0% 12/3/2003 Book page 72 G:\wp.dta\agenda\FAHR\FAHR2003\ 1203\03-110.2 D 1 2 3 4 5 6 7 8 9 10 Important Parameters Affecting Capital Facilities Capacity Charges Revised November 26, 2003 Preliminary Capital Facilities Capacity Charge Options J. JS 1= M 1999 2003 RRR Paid Fixed Assets Strat Plan ValCIP By User Fee Only Existing Net Non-Capital Assets $ 347,000,000 572,000,000 572,000,000 Existing Net Capital Assets 416,000,000 502,000,000 502,000,000 502,000,000 Additional Capacity 805,000,000 836,000,000 836,000,000 836,000,000 Improved Treatment 48,000,000 562,000,000 562,000,000 562,000,000 Replacement, Rehab, Refurb 665,000,000 1,053,000,000 Support 14,000,000 106,000,000 106,000,000 106,000,000 Total $ 2,295,000,000 3,631 ,000,000 2,578,000,000 2,006,000,000 EDUs in 2020 @ 260 gpd 1,354,000 1,235,000 1,235,000 1,235,000 Investment per EDU* $ 1,695 $ 2,940 $ 2.087 $ 1,624 Raised by new EDUs $ 723,630,000 $ 905,540,000 $ 642,930,000 $ 500,280,000 Page 2 of 3 N 0 Growth Pays For Growth 836,000,000 - $ 836,000,000 308,000 $ 2,714 $ 836,000-,000 * Differs from CFCC per base 3 bedroom SFR because Infiltration, Inflow and Runoff adjustments have not been included 12/3/2003 Book page 73 G:\wp.dta\agenda\FAHR\FAHR2003\ 1203\03-110.2 Important Parameters Affecting Capital Facilities Capacity Charges Revised November 26, 2003 Page 3 of 3 E Recommended "Growth Pays For Growth" Capital Facilities Capacity Charge Commercial I Residential Industrial Total Additional Capacity Projects $ 548,416,000 $ 287,584,000 $ 836,000,000 2 Adjust Wet Weather Flow Facilities 35,184,000 (35,184 ,000) 3 Additional Capacity Adjusted for WW $ 583,600,000 $ 252,400,000 $ 836,000,000 4 New EDUs in 2020 202,000 106,000 308,000 5 CFCC per EDU $ 2,890 $ 2,380 $ 2,714 6 New Non-Res 1000 sq ft in OCSD $ 126,000 7 New Non-Res 1000 sq ft o/s OCSD 115,000 8 Total New Non-Res 1000 sq ft $ 241 ,000 9 CFCC per 1000 sq ft $ 1,050 10 Use Catego~ SFR Factor Res Rates Non Res Rates 11 Commercial/ Industrial 12 Low Demand $ 170 13 Average Demand 1,050 14 High Demand 2,490 15 Single Family Residential 16 5+ Bedrooms 1.39 $ 4,020 17 4 Bedrooms 1.19 3,440 18 3 Bedrooms 1.00 2,890 19 2 Bedrooms 0.81 2,340 20 1 Bedrooms 0.62 1,790 21 Multi-Family Residential 22 4+ Bedrooms 1.08 3,120 23 3 Bedrooms 0.89 2,570 24 2 Bedrooms 0.70 2,020 25 1 Bedrooms 0.50 1,450 26 Studio 0.32 920 27 Supplemental CFCC for Permit Users, includes 5% cost of funds 28 Flow, per million gallons per day $ 0.001001 29 BOD, per 1000 pounds per day 0.289100 30 SS, per 1000 pounds per day 0.187150 12/3/2003 Book page 74 G:\wp.dta\agenda\FAHR\FAHR2003\ 1203103-110.2 Current Capital Facilities Capacity Charges The current CFCCs were adopted by Ordinance in June of 1999. Pursuant to Board policy, new rates were proposed to the FAHR Committee in May 2003, subsequent to the Interim Strategic Plan Update and the Validated Capital Improvement Program. The proposed CFCC rate changes were deferred by the Committee pending additional information, leaving the 1999 rates in effect as shown below. CAPITAL FACILITIES CAPACITY CHARGES Use Category Rate Basis Base Charge Commercial -Industrial Per 1,000 square feet Low Demand Per 1,000 square feet $ 110.00 Average Demand Per 1,000 square feet $ 675.00 High Demand Per 1 ,000 square feet $1,600.00 Single Family Residential Per Unit 5+ Bedrooms Per Unit $2,530.00 4 Bedrooms Per Unit $2,165.00 3 Bedrooms Per Unit $1,820.00 2 Bedrooms Per Unit $1,475.00 1 Bedroom Per Unit $1,130.00 Multi-Family Residential Per Unit 4+ Bedrooms Per Unit $1,965.00 3 Bedrooms Per Unit $1,620.00 2 Bedrooms Per Unit $1,275.00 1 Bedroom Per Unit $ 910.00 Studio Per Unit $ 580.00 The Supplemental Capital Facilities Capacity Charge (SCFCC) is applied to Significant Industrial Users on the basis of the average daily quantity of discharge in excess of the User's baseline. The SCFCC charge is based upon each discharge component and includes a nominal interest charge because the facilities must be paid for by the District in advance . Component Measurement Daily Charge Flow BOD ss Gallons Per Day Pounds Per Day Pounds Per Day Book page 75 $0.00057 $0.14461 $0.16025 Self Monitoring Performance, Self Monitoring Reporting and Reporting Non Compliance Fees Source Control September, 2003 The Federal Code of Regulations, 40CFR403 requires that the District implement a pretreatment program (Source Control Program) that includes the implementation of a monitoring program of industrial users. One element of this monitoring program is self monitoring, by which, industrial dischargers to the sewer conduct self monitoring of their discharges and submit the data to the District. l he District's Ordinance No. OCSD-01 authorizes the District to obtain from dischargers data and reports for self monitoring of wastewater constituents and characteristics to monitor the discharger's compliance with permit conditions and determination of annual user charges. The requirement to self monitor and provide data that establishes the industrial discharger's compliance status is instituted either through Wastewater Discharge Permit (Permit) conditions or through enforcement instruments such as Probation Orders, Environmental Compliance Schedule Agreement (ECSA) and other administrative actions. District's Source Control division has developed, implemented and is administering as part of its approved Source Control Program self monitoring and reporting program that requires dischargers holding a permit with the District to self sample for constituents prescribed in the discharge permit and at a frequency specified in the permit, and provide reports on the results of the sampling on a schedule also specified as a condition of the permit. In addition, various other reports are required from the discharger to assess user charges and determine compliance either as part of the permit or as a result of enforcement actions. The District incurs costs whenever these requirements are not met, either by failure to perform the self monitoring action or provide data, or by failure to submit report of the required data or information in accordance with schedule. For these cases, the District incurs administrative costs in tracking, evaluation of status and in administering various notifications to the non-compliant discharger in accordance with legal and the EPA approved Enforcement Management Program. In accordance with federal regulations, any discharger who fails to provide a report required by the District within thirty (30) days from due date, is designated to be significantly non-compliant (SNC) and is subsequently, as a first enforcement step, published in a local newspaper followed by enforcement actions to attain compliance. Because of the administration and programmatic requirements, and because of due process in case of an SNC finding, the District incurs significant costs for each discharger who is delinquent in reporting. The District proposes two levels of cost assessments. 1. SNC Determination. This involves one or two late notifications ( depending on the reporting program), delinquency evaluation to determine SNC status and notifications, follow up actions and determination of further enforcement. The cost to the District for each discharger who is designated and notified to be SNC is assessed at $165.00. 2. Annual SNC and Publication. Following a finding of SNC, the District evaluates and takes action to publish SNC permittees in the local paper, as required by federal regulations. This action includes several steps, including notification, meetings, notification of the paper, and fin al review of findings. The cost to the District for each discharger found annual SNC and considered for publication is assessed at $260.00. Because costs would have been incurred by the District whether the discharger is 1 Book page 76 published or not, this fee is not waived or returned if, based on subsequent findings, the discharger is not published, or other enforcement actions are suspended. This fee will be assessed at the time the District sends and the discharger receives the notification that it has been found SNC for the fiscal year and publication, or other enforcement action, is pending. The total fee assessed a discharger who has failed to submit data, or is late in submitting data and designated SNC, and is then found to be an annual SNC, with potential publication, is $425.00 Staff proposes the following wording and changes to Ordinance No. OCSD-20: 1. Section 4.03, pg. 23 Section 4.03 Source Control Non-Compliance Fees. Source control non-compliance fees are hereby established for dischargers' non-compliance sampling and for self monitoring and data reporting non-compliance, in the sum or sums as set forth in Table F, below. 2. Table F, pg. 25 2 Book page 77 TABLE F DISCHARGER SOURCE CONTROL NON-COMPLIANCE FEES Discharger Non-Compliance Sampling Cost of Processing and Sampling Following a Minor Violation Cost of Processing and Sampling Following a Major Violation Cost of Analysis Heavy Metals • Aluminum • Antimony • Arsenic • Cadmium • Copper • Gold • Lead • Molybdenum • Nickel • Palladium • Platinum • Selenium • Silver • Thallium • Zinc Mercury 601/602 604 606 608 610 612 624 625 3 Book page 78 Charge $225.00 per event $500.00 per event Charge $ 35.00 each $ 78.00 $152.00 $223.00 $254.00 $523.00 $ 73.00 $200.00 $355.00 $661.00 Discharger Non-Compliance Sampling Ammonia Analysis as Nitrogen Biochemical Oxygen Demand (BOD) BOD and Suspended Solids (SS) Analysis Chemical Oxygen Demand Conductivity Cyanide (Amenable) Dissolved Mineral Solids Gamma Radiation Determination Gross Alpha and Beta Determination Tritium Determination Oil & Grease (Hexane Soluble Matter) Oil & Grease (Mineral Partition) Total Organic Nitrogen pH Fluoride Suspended Solids (Total) Suspended Solids (Total and Volatile) Total Dissolved Solids Total Sulfides Self-Monitoring and Data Reporting Non-Complrance Cost of Processing and Issuing Significant Non-Compliance Notification Cost of Processing Annual SNC and Publication 4 Book page 79 Charge Charge $ 21.00 $ 44.00 $ 67.00 $ 44.00 $ 15.00 $ 70.00 $ 15.00 $115.00 $ 50.00 $ 50.00 $ 74.00 $ 74.00 $ 48.00 $ 8.00 $ 51.00 $ 23.00 $ 44.00 $ 14.00 $ 29.00 $165.00 $260.00 FAHR COMMITTEE AGEN'DA REPORT Orange County Sanitation District FROM: Blake P. Anderson, General Manager Gary G. Streed, Director of Finance Meeting Date 12/10/03 Item Number FAHR03-111 SUBJECT: CONSIDER PROPOSAL FOR UNDERCHARGED COMMERCIAL PARCELS GENERAL MANAGER1S RECOMMENDATION 1) Consider proposal submitted by Revenue Enhancement Group (REG), dated November 2003, Identifying Undercharged Commercial Parcels; and, To Bel. of Dir. Item Number 2) Direct staff to return to the FAHR Committee for approval of a Request for Proposal for some or all of the services proposed by REG; -OR- 3) Direct staff to return to the FAHR Committee with alternatives to administrating the current sewer user fee program. SUMMARY Since 1981, an increasingly larger portion of the District has collected annual sewer service user fees as a separate line item on the property tax bill. Our user fee is currently based upon the property use code and the building square feet in the County Assessor's database. We have purchased a copy of that database and each year we purchase the annual adjustments and changes for our use in developing and assessing annual fees. Currently, our copy of the 530,000 parcel database is maintained in-house on the District's computer network. One of our challenges is how to best administer the program to minimize over-and under-charges of the nearly 55,000 non-residential parcels that are charged each year. The total sewer user fees levied for 2003-04 was $88.4 million. Non-residential users make up approximately $28.9 million of that. In 1999, the FAHR Committee and the Board authorized staff to hire a consultant to review parcels that had not been charged user fees, including those parcels owned by governmental agencies. The cost of that contract was $1 million and the user fees that were generated have exceeded $4 million each year since that work. The scope of this contract was very limited however, and not all parcels were reviewed. Book page 80 In February 2003, the FAHR Committee reviewed a proposal from the Revenue Enhancement Group (REG) to provide "sole source" services to review every non- residential parcel in the database. REG proposed to evaluate the square feet and the property use code assigned to these parcels, to provide a listing of those parcels that were "incorrectly'' coded, to act as District representatives to answer customer questions, and to create a database at the District. REG requested a flat fee and a percentage of any changes, essentially the same as their current proposal which is attached. After considerable discussion, the FAHR Committee directed staff to consider alternatives including a competitive selection process for outside services, to look at in- house alternatives and to determine what other agencies do and to return with additional information. Committee Chairman Brady has recently asked staff to put a discussion item on the agenda for this meeting to allow the Directors to discuss a November 2003 proposal from REG. This proposal was delivered to staff via email on November 30, 2003. The owner of REG, Bob Lockhart, and his lobbyist, Adam Probolsky have indicated they will attend the meeting to discuss the November 2003 proposal with the Directors. PROJECT/CONTRACT COST SUMMARY The Revenue Enhancement Group proposal for this work is $2.5 million plus 15% of any identified undercharges over $3.5 million. Undercharges would be calculated for the current tax year and for the prior four tax years, for a total of five years. A flat amount of $90 per parcel would be assessed if the number of parcels reviewed exceeds 28,608. The first $1 million would be due when the contract is signed. The work is proposed to be completed by August 1, 2004, so those corrected sewer service fees could be placed on the 2004-05 property tax bills. There are no provisions in the proposal regarding future maintenance and or adjustment of the database. Alternative methods of reaching the goal of this project would result in costs that are different from those proposed. BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. IZ! This item has not been budgeted. (See Additional Information below) D Not applicable (information item) ADDITIONAL INFORMATION Because we use a database that was originally created for a use other than ours, some of the data does not match our needs. Sometimes the use code is very broad and covers a wide range of business and of sewer use, such as code 114 for industrial parks. Sometimes the square footage of a building is missing or incorrect. These types G:lwp.dta'!'genda\FAHR\FAHR200311203\03-111.Revenue Enhancement Group.doc Revised: 8/20/01 Book page 81 Page2 of errors are not significant for the Assessor's intended use, but are significant for calculating our user fee. Over the past several years, some firms have challenged our property use and building size based fees. Our fee ordinance allows adjustments to the assumed user fee if a more accurate use can be demonstrated. Proof of water purchases and actual building size and use are generally required. Because our fees are collected on the general property tax bill, users are eligible for adjustments for the current tax year and the four preceding tax years. The firms that find these adjustments are generally paid a percentage of the refund or rebate that their client receives. Because our non-residential fees are based upon average flow, BOD and TSS discharges for user categories, there will also be a number of users who are currently undercharged. How many and how much are not known at this time. The Revenue Enhancement Group has suggested that they could find many non- residential properties that are currently undercharged. While they normally work on a contingency basis with their private clients, they would combine a fee and contingency arrangement for any work with us. The contingency portion could be an addition to their flat fee based upon the amount of unbilled sewer fees that they find. The District's database has been continually updated to reflect any errors or omissions that have been discovered by staff, these consultants or the users themselves. Several non-residential properties have had their square feet reduced in this database so that the annual fee calculation reflects historical water use and additional refunds are avoided. During their last discussion the Committee considered several related issues that could impact the proposal or an RFP process. These are summarized below. 1 . Will we assess undercharges for the prior four years, just as we allow refunds? Most public agencies do not do this, but it is legal. The argument for doing it is that it is fair and legal. If overcharges are refunded, then undercharges should be collected. The argument against doing it is that the user did nothing to cause the undercharge. They paid what we billed them; our process caused the error. We are allowed to collect unbilled fees for the prior years, but we are not required to collect them. The Committee was mixed on whether to collect prior year's fees and wanted to know the dollar amount involved before making a decision. When properties that had not been assessed at all were discovered in an earlier project, the prior years' fees were not billed. 2. How will we deal with delinquent payments or with property owners that have moved on? We will not be able to put these corrections on the property tax bill; we will have to generate invoices to the property owners. We can expect that some of the properties will have changed owners and some uses have changed. Since these properties are not connected to our sewers (they are connected to City sewers generally), and do not have discharge permits, we cannot shut them G:\wp.dtalagenda\FAHRIFAHR2003\1203\03-111.Revenue Enhancement Group.doc Revised: 8/20/01 Book page 82 Page 3 off or discontinue service. We would need to use persuasion, collection agencies and small claims court to collect these fees. This could be a significant drain on staff time and would result in some businesses paying the fees while others did not. 3. Are there other methods of finding undercharged parcels? Are there other firms that challenge direct assessments that would be willing or able to work on the assessment side? How would we find them? What about contacting each of the firms that submit refund requests and offering them the same percentage to submit undercharges they discover? How about using existing or additional or limited-term staff to do the work? We know there is at least one such firm because we hired one in 1999 to do some special work for us. We have not discussed this work with that firm. We have the ability and the knowledge to do the work in house, but not the staff to do it quickly. The demands on staff would be lessened if the adjustments were made on a going-forward basis only. Staff estimates that it would take approximately 1,440 person days to review and visit the 28,800 non-residential parcels that have not been previously reviewed. There are approximately 240 person days in a year, so to complete the work in six months would require 12 limited-term employees. If each limited-term employee were paid $20 per hour, the additional staff costs would be approximately $230,000. 4. Is it worth the effort? This is the bottom-line question. We believe that there are businesses that are being undercharged. We believe this because we have found errors in the database and because there have been businesses that were over charged. Unfortunately, we cannot prepare and accurate estimate the value or magnitude of the undercharges. REG claims to have identified $3.5 million of undercharges. REG has not submitted the data necessary for staff to evaluate that claim, but we believe that amount includes charges for the four prior years. It may also include charges for adjustments previously made for fee reductions. Our goal is for every user to pay its fair share. Because our rates are determined by how much money we need to raise, if we are not collecting everything that is due us, we may be setting the rates too high in subsequent years. If the annual undercharges amount to $1 million, then the annual SFR user fee may be overstated by $1. There is also some intrinsic value to having a system that is as good as can be economically developed. The question is what is the proper cost? 5. What about changing the fee basis from use and building size to use and water use? A change like this is probably possible. We have the property use that is on the Assessor's database and we could even mail a survey to each non- residential user to determine the type of use on each developed parcel. Determining the water use is somewhat more difficult. First we would need to determine the total water purchased for each parcel. This would require some type of agreement with the water retailers. There would certainly be a cost for us to get the information from those agencies, but it could probably be worked out. In these days of computers, we should be able to get the data in a format G:\wp.dta\agenda\FAHR\FAHR2003\1203\03-111 .Revenue Enhancement Group.doc Revised: 8/20/01 Book page 83 Page4 that we could work with. The next step would be to determine how much of the purchased water gets discharged to the sewer. Some is generally used for landscape, some evaporates and some becomes product. The same survey that determined the property use could also ask for this information. A change like this would probably take some time to complete and would require the help of a consulting firm. The cost and the time required to develop such a program is not known. 6. What if we find any parcels that were overcharged? Options are to do nothing, to notify the property owner to verify the changes or to simply issue an unsolicited refund. The Committee agreed with staff that any overcharges that were discovered by staff or a consultant would be refunded. Use of a consultant would raise the issue of how that consultant would be compensated for refunds. 7. What do other agencies do? Staff contacted the City of Los Angeles, Sacramento and LA County Sanitation Districts (LACSD). Only LACSD has responded. They assess and collect their sewer user fee in a manner very similar to ours. They have approximately 1,000,000 parcels with 8-900,000 being residential, so they do not take any extra measures to find non-residential user undercharges. We have 530,000 total parcels with 475,500 residential parcels. Fees of the County Assessor, the County Auditor-Controller and the data processing service associated with the sewer service user fee program are budgeted within the collection system, or Revenue Area, operating budget. No budget appropriation was made for the proposed services. If the consultant's estimate of a minimum recovery of $3.5 million is correct, then that would be approximately $700,000 for each of the five eligible years. We know that rates have increased during this period and that the amounts for each year would not be equal, but would probably be back-weighted. Assume this for discussion purposes however. If we collect $3.5 million the first year and the cost is $2.5 million, we are $1 million to the good. Then in 2003-04 we will use the corrected database and collect another additional $700,000. Should the Directors decide to only go forward with the corrected database and not to collect the unbilled user fees for the previous 4 years, it will take longer to recover the consultant costs. In the base case example, the $2.5 million fee would be repaid in approximately four years. The immediate out-of-pocket costs can be paid from either budget savings, from current year revenues or from reserves. ALTERNATIVES 1 . Authorize the consultant's work but do not bill for past undercharges. G:lwp.dta\agenda\FAHR\FAHR2003\ 1203\03-111.Revenue Enhancement Group.doc Revised: 8/20/01 Book page 84 Page 5 2. Authorize the consultant's work but wait until the amount or impact is known to decide about past undercharges. 3. Do not authorize the consultant's work and direct staff to improve the database in house over an extended time period. 4. Direct staff to conduct a formal RFP process, compare the results to the costs to complete the process in house and return to FAHR with a recommendation. 5. Direct staff to determine the feasibility of agreements with all or several firms that process refund requests to also process undercharge adjustments on a contingency basis. CEQA FINDINGS N/A ATTACHMENTS 1. Proposal received from Revenue Enhancement Group GGS G:\wp.dta\agenda\FAHR\FAHR2003\1203\03-111.Revenue Enhancement Group.doc Revised: 8/20/01 Book page 85 Page6 REVENUE ENHANCEMENT GROUP PROPOSAL Identifying undercharged commercial parcels ... making rates more fair. EXECUTIVE SUMMARY The Orange County Sanitation District (OCSD) is presently undercharging hundreds of commercial parcels. Revenue Enhancement Group (REG), a successful Orange County based consulting firm, can identify these parcels and help to make OCSD assessment database more accurate and insure that all rate payers pay their fair share. Using paid databases, public information, Internet resources, site inspections and request letters, REG will create an assessment database to include accurate square footage and usage information. Conducting this intense six month research project will help the OCSD recover millions of dollars in back fees and increase future revenues significantly. In addition to the research, REG will for no additional charge, and at the direction of the OCSD advance the process by notifying parcel owners, generating invoices and assisting in the collections process. The database will be prepared for ease of use within the OCSD. This will correct the problem of relying on the assessor's file which often times includes inaccurate parcel information and or missing information resulting in millions of dollars in lost revenue for OCSD. At the heart of this proposal is the issue of fairness. For too long residential rate payers have paid their fair share, while numerous business rate payers have underpaid. Likewise, commercial rate payer who are paying, often times thousands of dollars less than they are supposed to, have a significant unfair advantage over their competitors who pay the correct amount. EXAMPLE: REG has already identified approximately $3,600,000 of undercharges within the OCSD rate payers. This is based upon assessing parcel owner the current tax year and four years prior per OCSD and California statute. REG has reviewed only a very small portion of the larger square footage undercharged parcels. ACTION PLAN 1 Review all 28,608 commercial parcels to verify use code and square footage. Trained investigators will use a variety of research tools to update the assessment database. Some of these tools include: a. Property profile databases from Win2Data, Dataquick, and Costar Properties b. Internet (many commercial property owners have web sites featuring their properties with use and square footage information) REVENUE ENHANCEMENT GROUP PROPOSAL TO THE ORANGE COUNTY SANITATION DISTRICT NOVEMBER 2003 Page 1 of 3 Book page 86 c. Site inspections d. Send letters to property owners to obtain the necessary parcel information -REG will prepare these letters to property owners on OCSD letterhead (content approved by OCSD). Postage will be paid for by REG. 2. All information will be formatted in a database ( created by REG) based on parcel number and will include the following information: Property Profile a. Parcel number b. Use code currently charged c. Square footage currently charged d. District number e. Sanitation charges billed for current tax year and for each tax year for the past four years f. Use code after investigation g. Square footage after investigation h. Corrected sanitation charges for current year and four years prior by year i. Source where the information was collected, such as assessor, parcel owner, property database or site inspection j. The database will show whether current year and each of the four years prior was correctly charged, overcharged or undercharged k. OCSD billed charges for the 2003-2004 tax year and four tax years prior If the parcel is undercharged the following will also be included: The property profile will also show the corrected use and square footage and the OCSD assessment that is correct for 2003-2004 tax year and the four prior tax years if applicable. The database will calculate the correct charges based on the new information and compare it to previous bills if any exist. The database will calculate the additional amount of OCSD charges to be billed to each parcel. And finally, the database will keep a running total of the dollar amount that OCSD has undercharged. If the parcel is over charged: The database will reflect if a parcel is being overcharged. 3 Once the database is complete, it will be delivered to OCSD in electronic format 4. REG will prepare invoices, letters and address envelopes to each parcel owner on behalf of OCSD at the time the undercharge is verified. All letters and invoices will be approved, signed and mailed by OCSD. 5 This proposal includes REG willingness to expand its call center operation to handle incoming calls from parcel owners with questions regarding their new REVENUE ENHANCEMENT GROUP PROPOSAL TO THE ORANGE COUNTY SANITATION DISTRICT NOVEMBER 2003 Page 2 of 3 Book page 87 invoices. While not a requirement of the agreement, REG offers this option at no additional cost to OCSD. 6. REG would like to offer a monthly progress briefing to the appropriate committee or staff at the discretion of the OCSD. TIME LINE If beginning prior to January 30, 2004, REG will have this project completed by August 1, 2004. OCSD will receive a monthly report on the undercharged parcels so OCSD can make the change on the use or square footage and send the updated information to the assessor in order to have the 2004-2005 tax year billed sanitation charges be correct. Invoices and letters to parcel owners will be generated on a weekly basis as soon as the undercharge is verified by REG. Once a month a financial report will be generated and delivered to the OCSD. This monthly report will show the undercharged dollar amount invoiced for the past month and the running year to date total of all undercharges invoiced. CONTACT Robert Lockhart is president of REG and will be the contact person for the contract. REG is located at 600 S Main Street Suite 1100, Orange CA 92868. Telephone number 714-543-4460, fax number 714-543-4604, email rlockhart@revenh.com. BUDGET REG will be paid $2,500,000 plus 15% of additional undercharged billed assessments over $3,500,000. REG will receive payment of $1,000,000 when REG starts the project. Payment of$500,000 by April 15, 2004. The balance of$1,000,000 will be paid when the database is completed and delivered to OCSD. The additional 15% will be paid by January 15, 2005. For any additional commercial parcels above the current 28,608 currently being billed by OCSD, REG will charge a flat fee of $90 per parcel. The fee would be paid at the time REG delivers the completed database. Respectfully submitted by, Robert Lockhart President REVENUE ENHANCEMENT GROUP PROPOSAL TO THE ORANGE COUNTY SANITATION DISTRICT NOVEMBER 2003 Page 3 of3 Book page 88 FAHR COMMirtEE Meeting Date To Bd. of Dir. 12/10/03 12/17/03 AGENDA REPORT Item Number Item Number Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Jim Burror, Senior Engineer FAHR03-112 SUBJECT: LONG RANGE BIOSOLIDS MANAGEMENT PLAN, JOB NO. J-40-7 GENERAL MANAGER'S RECOMMENDATION This is an information only item. SUMMARY • In September 2002, the Board of Directors authorized CH2MHill, Inc. to study the long range biosolids management options for the Orange County Sanitation District (District). • Since 1999, land application options for biosolids in California and the surrounding states have become tenuous. Many of the District's present management options are anticipated to be no longer viable due to new local ordinances in two to five years; therefore, the scope of the study was to develop a plan for managing District's biosolids for the next 10 to 15 years. • The Long Range Biosolids Management Plan (Plan) includes an analysis of potential technologies and markets for biosolids derived products, an analysis of treatment plant processes to reduce overall biosolids handling and treatment costs, and a long range implementation strategy. • Over the past five months, District staff presented each major piece of the plan to the Operations, Maintenance, and Technical Services (OMTS) and Planning, Design, and Construction (PDC) Committees. • The following will be implemented based on the Plan's recommendations: 1. Employ new in-plant technologies to reduce the volume of Biosolids handled by the District's two treatment plants, as follows: • Replace existing belt filter press dewatering equipment with centrifuges. • Replace existing secondary sludge dissolved air floatation thickening equipment with gravity belts. • Install primary sludge thickening equipment. Page 1 Book page 89 2. Move to the production of Class A biosolids products using established and reliable technologies. 3. Establish and maintain failsafe backup options for 100% of the biosolids produced at OCSD. 4. Work with member agencies and local stakeholders to develop in-county production facilities and markets. 5. Moving into the following markets using vendor contracts for providing processing facilities, product distribution, and marketing: kets: • Energy and fuel production • Heat dried granular products • Heat drying with soil reclamation • Compost • Organo-mineral fertilizers • In order to quickly transition from Class B to Class A biosolids production before the Class B market collapses, requests for proposals (RFP) are being released for biosolids management. These RFP's are to provide services and facilities to participate in the markets recommended in the Long Range Biosolids Management Plan. • These proposals will be reviewed by District staff and its consultants. The recommended vendor contract(s) will be brought back to the Board of Directors for final approval in April 2004. • During on this transition, the costs to beneficially reuse biosolids are expected to increase of about $3 million per year starting in FY 06-07; the current FY03-04 budget for biosolids management was $9 million. PRIOR COMMITTEE/BOARD ACTIONS 1. November 2003 OMTS/PDC: Information only item regarding existing policies and potential future reuse costs outlined in the Long Range Biosolids Management Plan. 2. October 2003 OMTS/PDC: Information only item regarding the various in-plant treatment optimization options evaluated in the Long Range Biosolids Management Plan. 3. September 2003 OMTS/PDC: Information only item regarding the biosolids product markets and product technologies. 4. August 2003 Board: Approve Addendum No.2 to the Professional Services Agreement with CH2M Hill, Inc. for an additional amount of $785,079.78. Page2 Bookpage90 5. July 2003 Board: Receive and file Draft Long Range Biosolids Master Plan, Job No. J-40-7, dated June 2003, prepared by CH2M Hill, Inc. 6. September 2002 Board: (1) Approve a budget amendment of $100,913; and (2) Approve Professional Services Agreement with CH2M Hill, Inc. for an amount not to exceed $490,913. 7. February 2002 Board: (1) Approve a budget amendment of $157,942.17; and (2) Approve Addendum No.1 to the Professional Services Agreement for an additional amount of $157,942.17. PROJECT/CONTRACT COST SUMMARY No new authorization of expenditures is being requested at this time. BUDGET IMPACT [8J This item has been budgeted. (Line item : Section 8, Page 124) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. D Not applicable (information item) No new authorization of expenditures is being requested at this time. ADDITIONAL INFORMATION The Executive Summary from the Long Term Biosolids Management Plan, Job No. J-40-7, dated November 2003, prepared by CH2M Hill, Inc. is attached for additional information. Also, a presentation will be given at the meeting. ALTERNATIVES None CEQA FINDINGS None required at this time. CEQA documentation will be developed as part of the implementation of any selected biosolids management option, as necessary. ATTACHMENTS Executive Summary from the Long Range Biosolids Master Plan, Job No. J-40-7, prepared by CH2M Hill, Inc. JB:sa G:\wp.dta\agenda\FAHA\FAHA2003\ 1203\03-112.Biosolids.doc Page 3 Book page 91 Final Long-Range Biosolids Management Plan Executive Summary The Orange County Sanitation District (the District) currently produces approximately 650 wet tons of digested and dewatered Class B biosolids per day. By the year 2020, biosolids production is projected to increase by about 30 percent. The District relies on land application of its Class B biosolids in Kem and Kings Counties in California, and Class B biosolids land application at the Fort Mojave Indian Reservation in California, Nevada, and Arizona. Moreover, the District is committed to environmentally sound biosolids management practices that meet the stringent federal, state, and local regulatory requirements. Counties throughout California and Arizona have developed, or are in the process of developing, ordinances that severely restrict or ban the land application of Class B biosolids. Recently Kem and Kings Counties banned land application of Class B biosolids. It has become clear that future requirements for managing biosolids will be more restrictive and costs will increase as current options are eliminated. The dynamic regulatory issues, land application ordinances and bans, and public perception challenges prompted the District to develop this Long-Range Biosolids Management Plan. The goal was to develop a sustainable, reliable, and economical program for long-range biosolids management. This Long-Range Biosolids Management Plan includes four major elements: 1. Identify long-term potential Southern California Gass A biosolids products and product markets. 2. Identify the onsite and offsite facility options for manufacturing marketable products while optimizing the use of the District's facilities necessary in treating wastewater. 3. Develop a flexible implementation plan for positioning the District to be able participate in multiple markets. 4. Continue to beneficially reuse biosolids and maintain conformance with the National Biosolids Partnership (NBP) Code of Good Practice. Long-Range Biosolids Management Plan Development There is a wide range of products that can be developed from biosolids. The strategy for the District will be to focus its resources on developing an economical product for targeted sustainable markets. To develop and select the most sustainable biosolids management options, the consultant team utilized a business-model assessment. First, the long-term sustainable biosolids product markets were identified. Next, the steps necessary to manufacture suitable biosolids-based products for these markets were evaluated. The relationship between the top five long-term sustainable biosolids markets and products that can be generated for these markets is summarized as follows: • Horticulture -Blending and Bagging for Retail Outlets: Compost, dry pellets and granules, and organo-mineral fertilizer products. W052003003SCO/LW1232 ES1 .DOC/031500006 Book page 92 FINAL LONG-RANGE BIOSOLIDS MANAGEMENT PLAN EXECUTIVE SUMMARY • Horticulture -Ornamental and Nurseries: Compost, dry pellets and granules, and organo-mineral fertilizer products. • Horticulture -District Member Cities and Agencies: Compost, dry pellets and granules, and organo-mineral fertilizer products on municipal lands. • Direct Energy Production: Class B biosolids cake and dry pellets. • Silviculture -Shade Tree Programs: Compost or dry pellets and granules, and organo- mineral fertilizer products. Each market consumes several biosolids-based products, and most products can have multiple markets. For example, all five markets accept the dry pellets and granules. Next, the consultant team developed an economic model and performed an assessment of the 22 most important critical implementation factors, including potential odors, traffic impacts, public perception, product sustainability, and ease of implementation/ siting. These two parallel activities allowed for the true cost of each option to be assessed and compared. Based on this evaluation, the most viable biosolids product manufacturing processes are: 1. Composting 2. Heat drying 3. Energy recovery 4. Organo-mineral fertilizer manufacturing 5. Heat drying with soil This evaluation also determined that diversification of products, product markets, and marketing contracts, as well as the availability of failsafe backup options, are critical elements to protect the District from the effects of weakening markets and failed contracts. These elements are critical because each product market has associated weaknesses, and it will likely take time to develop a product for a new market, contracts with a company within that market, or both. Finally, the District needs to maintain its current land application capacity and options, including the Class A biosolids alkaline stabilization process at its farm in Kings County and other land application sites, for as long as it is feasible and economically sound, while this long-range plan is implemented. Recommendations and Costs The biosolids management program is designed to provide flexibility and allow the District to diversify products and manufacturing through participation in both District-owned and merchant facilities. The consultant team recommends diversification using the following approach, primarily to reduce financial risk: 1. Maintain at least three different product manufacturing options at any given time. 2. Optimize capital and operation and maintenance (O&M) costs at the District treatment plants as part of implementation of the long-range plan. 3. Limit maximum participation for any market to one-half of the total biosolids production. 4. Limit biosolids management contracts to a maximum of one-third of total biosolids production per merchant facility, and one-half per contractor (for contractors with multiple product manufacturing facilities). 5. Maximum capacity for each District-owned product manufacturing facility to be one-half of the total biosolids production. 6. Explore funding options for in-county facilities (private capital, District capital, or both). W052003003SCO/LW1232 ES1 .DOC/031500006A 2 Book page 93 FINAL LONG-RANGE BIOSOLIDS MANAGEMENT PLAN EXECUTIVE SUMMARY 7. Allocate up to 10 percent of biosolids for participation in emerging markets. 8. Pursue Orange County based product manufacturing facilities and maximize the use of horticultural products within the District service area by member agencies and through developing public-private partnerships. 9. Maintain capacity and options at the District's Central Valley Ranch. 10. Pursue failsafe backup options (landfilling, alternative daily cover [ADC] for landfills, and dedicated landfilling) to acquire a 100 percent contingency capacity. Table ES-1 presents a summary of the Plant Nos.1 and 2 onsite improvements, associated capital costs, and the year capacity is needed. With the current biosolids processes, Plant No. 1 dissolved air flotation thickener (DAFT) capacity will be reached in year 2013, digestion capacity will be reached in year 2013, and dewatering capacity will be reached in year 2007. With implementation of the proposed primary and WAS thickening improvements, the need for additional dewatering and digestion capacity will be postponed to year 2013 and beyond year 2020, respectively. For Plant No. 2, similarly, with the addition of new primary sludge and WAS thickening improvements, the existing digestion and dewatering capacity will be adequate through the year 2020 and beyond. TABLE ES-1 Plants 1 and 2 -Onsite Process Improvements and Expansion Onsite Biosolids Processing Facilities Plant 1 Onsite Biosolids Processing Facilities Primary Sludge Thickening (Centrifuge) WAS Thickening (GBT or Centrifuge) Digester Pretreatment (Ultrasound) Dewatering (Centrifuge) Plant 2 Onsite Biosolids Processing Facilities Digester Pretreatment (Ultrasound) Dewatering (Centrifuge) Notes: Year Capacity Needed 2013 2007 Note 2 2013 Note2 Note 3 Capital Cost, Million $1 17.4 10.7 10.1 55.6 6.5 39.7 1The capital costs are for onsite process improvements only. The upgrade of existing digestion facilities will be as planned in the capital improvement program (CIP) and Is not included here. 2The District is currently evaluating project delivery options for implementing ultrasound. 3Plant No. 2 has adequate dewatering capacity through the year 2020. However, centrifuge dewatering will result in reduction of biosolids cake volume and reuse costs and should be considered for implementation. GBT = gravity belt thickener To optimize facilities sizing, pilot testing of thickening (primary sludge, WAS, and combined sludge) and dewatering may be conducted. For digesters, the impact of an increase in digester feed solids (due to improved thickening) will be evaluated on the digester mixing systems, heat exchangers, and ammonia concentration in the digesters and dewatering recycles. Because additional dewatering is needed at Plant No. 1 and similar centrifuge equipment is used for the thickening and dewatering, full-scale centrifuges will be considered for testing. Upon completion of the thickening test, the centrifuges will be relocated to the Plant No. 1 dewatering building to provide the needed capacity and allow for evaluating the impact of the dryer biosolids cake on the cake pumping system and product manufacturing technologies. Testing for product manufacturing technologies will be conducted at the District's Central Valley Ranch and/ or existing merchant facilities that use the processes W052003003SCO/LW1232 ES 1.DOC/031500006A 3 Book page 94 FINAL LONG-RANGE BIOSOLIDS MANAGEMENT PLAN EXECUTIVE SUMMARY under consideration. Using full-size equipment for thickening and dewatering will also provide sufficient biosolids for testing product-manufacturing technologies. It is anticipated that land application markets will continue to become less reliable due to public perception and p olitical .issues and may not be available .in 3 to 5 years. The Biosolids Mru:1agement Program Implementation Plan; therefore, focuses on more reliable Orange County and Southern California reuse markets through developing high-value prnducts. As implementation of District-owned in-county composting or heat-drying facilities could take 8 years or longer, the program includes activities to immediately begin obtaining new merchant facility contracts that would enable the District to participate in more stable biosolids reuse markets. The merchant facilities will bridge the gap between the phase-out of existing reuse contracts and the startup of future District-owned facilities. Core elements of the implementation program include: • Participate in sustainable reuse markets through manufacturing higher-value products such as compost, dry pellets and granules, organo-mineral fertilizers, and energy. • Develop in-county composting (i.e., Central-North County, Joint Composting with South Orange County Wastewater Authority [SOCW A], etc.). • Develop in-county thermal drying facilities (onsite or offsite). • Participate in merchant composting and organo-mineral product manufacturing facilities. • Pursue merchant energy production (co-combustion) to allow participation in non- cropping markets. • Explore benefits and use of emerging biosolids product manufacturing technologies such as drying with hot soil and energy fuels (i.e., char). • Maintain failsafe backup reuse capacity for land application of chemically stabilized biosolids (Tule Ranch) and through reuse of biosolids products as ADC at landfills. • Obtain failsafe backup landfill capacity for biosolids landfilling (Orange County Integrated Waste Management Department [OC IWMD], Holloway Mines, etc.) Although the program has identified the need to add new thickening facilities, the digestion facilities identified in the validated capital improvement program (CIP) were eliminated. The capital cost of the program does not have a significant impact on the CIP resomce allocation until Fiscal Year (FY) 2007/2008. The major impacts occur wben construction of Disbict- owned heat-drying and/ or composting facilities is projected to be initiated, .if these facilities are financed by the District. Merchant facilities are typically funded through management contract tipping fees. The District should also explore contract terms that provide funding for in-county facilities through private capital, District capital, or both. In the past 3 years, the tipping fees for biosolids land application have risen from $25 per wet ton (pwt) to $35 pwt, representing an increase of 40 percent. In the interim period, the tipping fee is expected to increase to $45 to $50 for Class A biosolids land application. The current biosolids cake solids concentration is in the range of 20 to 22 percent, resulting in a cost of $200 to $250 per dry ton (pdt) for Class A biosolids land application. The cost for manufacturing high-value products for sustainable markets is estimated at $50 to $70 pwt. With the implementation of the proposed onsite improvements, the cake solids concentration is expected to be in the range of 26 to 28 percent, resulting in a cost of $195 to $270 pdt for high-value products. This modest cost increase provides the District with diverse and reliable product markets and product manufacturing options, reduces financial risks, improves program reliability, and minimizes potential for future cost escalations. W052003003SCO/LW1232 ES1 .DOC/031500006A 4 Book page 95 FINAL FAHR COMMITTEE Meeting Date 12/10/03 AGENDA REPORT Item Number FAHR03-113 Orange County Sanitation District FROM: Bob Ooten, Director of Operations and Maintenance (O&M) Originator: Bob Ooten, Director of Operations and Maintenance To Bd. of Dir. Item Number SUBJECT: STATUS OF O&M REINVENTION AND THE DISTRICT ASSESSMENT AND REINVENTION TEAM PROGRAM GENERAL MANAGER'S RECOMMENDATION For information only. SUMMARY • The purpose of this report is to provide the Board with an update on the status of the 7-year O&M Reinvention Program that is called DART, which consisted of 2 years to develop the Plari and 5 years to implement the Plan. The purpose of the project was to improve O&M efficiency to reduce the cost of labor by up to $6 million annually. • The efficiency methods involved developing and writing policies and procedures on how to maintain and identify (tag) up to 97,000 pieces of equipment in the two treatment plants, documentation of the 6,300 automation systems and electrical loop logic diagrams. • The original project is now 98% complete, on schedule and on budget. The savings over the past 7 years total about $35 million. The project costs total about $21.4 million. DART has been a staff-driven program that developed the O&M business and work practices needed to keep the District at or near the cost of the best privately operated wastewater treatment plants. • The report will provide information on how the project has been accomplished and provide information on what is needed in the future to continue to modernize the O&M business and work practices. • The purpose of the DART Implementation Plan was to improve business and work practices in O&M with the goal of reducing the cost of operation by increasing the level of efficiency to match that of the most efficient private wastewater systems in the industry. The DART Implementation Plan was developed for O&M by about 70 District staff over a 2-year period. The major elements of the O&M reinvention strategy were determined in the DART Implementation Plan. Now at the end of the original 5-year implementation program, all major parts are complete and the projected savings have been realized. OCSD/810/PJ G:lwp.dtalagenda\FAHR\FAHR2003\ 1203\03-113.DART.doc Page 1 Book page 96 The major components of the DART Program are: • Automation -Document existing automation and electrical systems and tag existing electrical and instrumentation systems. Determine the automation practices including central monitoring and remote control of treatment processes to reduce operation labor. Identification of better ways to accomplish daily work to become more efficient. • Data Warehouse-The Information Technology Department developed process links to the major information systems so that data can be electronically shared among the systems, reducing documentation and records data input labor • O&M Business and Work Practices (Work flow)-About 70 staff and consultants across the District developed upgrades to modernize the O&M business practices, work practices and management tools that were needed to improve productivity. • Outsourcing -Determine non-core work that should be performed by others such as janitorial, grounds maintenance, painting and small sewer cleaning. Several major additions to the original Plan were added over the project life, such as an equipment tagging system for the tracking of over 97,000 pieces of field equipment and the addition of the collections and field maintenance divisions that were merged into O&M in 2000. The Collections' business and work practices are estimated to be completed in September 2005. The major deletion from the Plan was the warehouse picking and kitting program to pre-bundle parts at the warehouse for maintenance staff to pick up. Optimization arid Continuous lmpro:vement after DART (Asset Mariagement) The business and work practices that were implemented during the DART plan have focused on and modernized the clay-to-day management in the operational maintenance divisions and the flow· of work between other District divisions. The next step is to implement more advanced maintenance practices that are based on risk and consequence analyses of equipment failure, which will provide reduced maintenance cost and higher reliability. Secondly, we probably have to modernize (replace) the software system used to track and plan maintenance work because the current system will .not accommodate the new advanced practices we will employ. In addition, O&M will be involved with the District development and implementation of cradle-to-grave management of equipment and facilitie$. This can be achieved by using a risk and consequence-based decision-making process to determine when facilities need to be expanded, reviewed or demolished. The result of applying these techniques will allow staff and the Board to review reports on the state of the District's assets and prioritize projects in an improved manner. This will result in the District's ability to recommend projects based on managed level of risk and consequences of potential failures. The net result of using these techAiques is a likely reduction in system failures, capital expenditures, maintenance costs, and increased reliability. OCSD/810/PJ G:\wp.dtalagenda\FAH RIF AHR2003\ 1203\03-113.DART.doc Page2 Bookpage97 PRIOR COMMITTEE/BOARD ACTIONS OMTS98-22 DART Reinvention Report and Implementation Plan (Information only) OMTS01-32 Status of Reinvention Project (Information only) PROJECT/CONTRACT COST SUMMARY The O&M staff, with the support of the other departments, undertook the development of a reinvention program to improve O&M labor and chemical productivity. The reinvention philosophy was embraced in the spring of 1996 after the consultant study was completed. By July 1998, staff had developed the DART reinvention plan. The reinvention philosophy was to use District staff to develop a reinvention plan with the commitment that, upon approval, it would be supported with District resources. The O&M reinvention program consists of the DART implementation plan, the data warehouse, automation, equipment tagging and outsourcing. DART is on track and will be completed in fall 2003. Plant automation is improving staff safety, providing accurate documentation and providing automation standards and staff automation ideas. O&M and Collections achieved the $6M saving by reducing 88 staff from 337 to 250, saving about $6M per year. The cost over the past 7-year implementation period has been $21,410,000 as shown in Table 1. The savings over the past 7-year program have been over $35,000,000 as shown in Table 2. TABLE 1 DART PROGRAM COSTS Item 7-Year Cost Plan Development $ 550,000 O&M Practices Revisions 1,860,000 Data Warehouse 2,800,000 Automation 9,600,000 Outsourcing 6,600,000 Total $21,410,000 TABLE 2 DART PROGRAM SAVINGS Item 7-Year Cost Labor Reduction $ 31,800,000 Maintenance Materials 2,370,000 Overtime 215,000 Predictive Maintenance 600,000 Automated Chemical Feed 400,000 Total $35,385,000 In summary, O&M staff established a goal to reinvent themselves to be more efficient, to reduce operating costs, improve plant reliability, and improve personnel safety. To achieve this goal, staff developed a reinvention plan and has been working methodically toward its completion. Essentially, O&M staff met their established goal in the spring of OCSD/810/PJ G:\wp.dta\agenda\FAHRIFAHR2003\ 1203\03-113.DART.doc Page 3 Book page 98 1996. It has been an extraordinary process that succeeded where most reinvention projects failed. The project's success is due to the District's commitment of needed labor, resources and the staff interest and energy to do the project. 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 DART History The consultant estimated O&M cost savings at 15 percent of budget ($6.0 million) annually. Staff believed that with a highly automated plant and intensively planned maintenance they cou ld achieve the cost savings goal of $6.0 million annually and would increase plant reliability and personnel safety at the same time. A $6.0 million cost-reduction goal was established and staff developed the following five-phased reinvention plan to achieve the goal: I. Competitive Assessment, March 1996 II. Develop Mission and Goals, August to December 1996 Ill. Staff Development of the Reinvention Plan, January 1997 to June 1998 IV. Implementation of the Plan, July 1998 to October 2003 V. Monitor and Measure Progress After the Competitive Assessment was completed by the consultant, the District's Assessment and Rei nvention T earn (DART) was formed, consisting of about 70 staff members. During fiscal year 1997-1998, the DART team developed the Phase IV O&M Reinvention and Implementation Plan. The Plan defined DART's mission and goals and the 5-phase reinvention process noted above. The present cost savings are at $6.2 million per year in labor, technology and chemicals after the outsourcing cost of $1 .2 million per year for a net total of $5.0 million. The cumulative saving in labor, overtime and chemicals over the last 5 years was $21.2 million. DART O&M Work and Business Practices In the original DART Implementation Plan, the O&M business and work practices revisions were scope, budget and schedule were detailed. This work area was scheduled to take five years to complete and with the exception of the Regional Assets and Services Division (Collections Division) the work elements is are basically complete. In the DART will be completed in October 2003 and is on schedule, on budget, and has achieved the cost savings projected for labor, warehousing and productivity improvements. The DART Program has successfully reduced labor by improving OCSD/810/PJ G:\wp dtalagenda\FAHAIFAHA2003\ 1203\03·113.DAAT.doc Page4 Bookpage99 productivity as measured by division wrench time, reduced warehousing costs by improving warehousing techniques overtime, and maintenance labor. Business and Work Practices Results • The total estimated cost for the 5-year O&M Business and Work Practices Implementation Plan was $2,410,200. This has been offset by the 5-year savings of $3,354,000 and an annual recurring savings of $1,440,000. • The maintenance productivity has increased from 67.74% to 75.27% in Mechanical Maintenance/Power Production and from 57.48% to 69.01 % in Electrical/Instrumentation maintenance from 1998 to present. Overtime was dramatically reduced at first, but has crept back up due to the ramp-up of full secondary and the addition of disinfection of the District's ocean discharge. • Staffing in the maintenance divisions was reduced from 111 in fiscal year 1997-1998 to 100 in fiscal year 2001-2002 due to increased productivity. • There were nine business practices identified for implementation in the original plan. Business practices are the philosophical base for conducting business. All nine practices have been implemented. • There were three major work practices identified for implementation: planning and scheduling modifications, O&M process performance measures, and restructuring the O&M organization. These three practices were all completed, with staff often finding even more efficient and effective ways of doing business. • Four additional practices were developed as a direct outfall of the implementation plan. The Equipment and Instrumentation Database (EID) used by Engineering, Maintenance, and warehouse to better manage demolition and rehabilitation of facilities, modification of the maintenance procurement practices, development and implementation of inspection and work management program for the facilities maintenance group, and the review and modification of the fleet maintenance program. • The reason for the success of the program is a result of the Board of Directors support and six full-time employees dedicated to implement the program. These employees have transitioned to become the Maintenance planning and scheduling group. Automation and Re-engineering One of the major reinvention tools used to improve business and work practices is the systematic planning of plant automation, which has been completed by the Engineering Department. The effort is divided into documentation, equipment tagging, gathering of staff automation ideas, developing plant automation projects, and developing automation standards for unattended plant operation. Accurate documentation of the 5,500 existing electrical and instrumentation systems provides increased equipment reliability, reduces costs for future engineering projects, and increases maintenance efficiency and work safety. OCSD/810/PJ G:\wp.dta\agenda\FAHR\FAHR2003\1203\03-113.DART.doc Page 5 Book page 100 Tagging 97,000 pieces of equipment provided positive identification of the equipment, which has allowed for more accurate isolation and operating procedures to be written for regulatory compliance and improved safety for O&M staff. The automation project gathered some 2,000 reinvention ideas from O&M staff that included automation suggestions and equipment installation recommendations for future projects, assisted in writing the engineering standards, and provided many safety suggestions. Many of the ideas are incorporated into the capital improvement projects and have provided significant benefits at minimal cost. The automation of the plant headworks, the outfall booster station, the chemical feed systems, and other projects have allowed the reduction of eighteen operator positions for a savings of $1 ,200,000 by providing centralized monitoring and operation of equipment that allowed reduced operations labor. Automation has also reduced chemical usage by $400,000 for a total of $1,600,000 plus an improvement in staff safety and the future reductions in engineering project costs. Data Warehouse There is a strategic business need to share information across the District business units. The data warehouse was needed to connect the five major software systems so data that was in one system could be electronically sent to another system. Historically, electronic databases were designed for one user such as the Computerized Maintenance Management System that was principally designed to be used by maintenance staff to manage a huge number of pieces of equipment. The data warehouse made the data available and developed programs to trend, plot and analyze data. Operations reduced about half of the 1 ,500 daily manually entered monthly summaries of operation records. Al TERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS Appendix 1 OCSD/810/P J G:\wp.dta\agenda\F AHAIF AH A2003\ 1203\03-113.DAAT.doc Page6 Book page 101 Appendix 1 Reinvention Status The following information provides more detail on the business and work practices that were implemented during the Reinvention process. The changes in the maintenance divisions apply only to the Mechanical Maintenance and Power Production Division and the Electrical/Instrumentation Division. The results of implementing the business and work practices are: 1. The Asset Management Process has been completed which has established an equipment hierarchy and identify critical process equipment. This has provided maintenance with the ability to track equipment location and associated history, cross reference equipment to spare parts, and accumulate financial data to assets and systems. 2. O&M Planning and Scheduling program has resulted in a formal work order and service request system being established. Parts are now ordered ahead of large shut downs and better coordination of resources are made so that multiple divisions can perform work during one shutdown. In addition a prioritization and criticality system has been established so that work can be effectively planned. Supervisors from O&M as well as other staff form Process Engineering, Air Quality, and Engineering now attend Planning and Scheduling meetings twice a week to coordinate scheduled work and troubleshoot any problems that may be occurring in the facilities. This meeting has reduced time that was spent by each individual contacting people and has reduced shutdowns as well as scheduling conflicts. 3. Warehouse and Inventory Control Processes have been reviewed and implemented. These include establishing the appropriate minimum and maximum levels for all parts based on criticality of the equipment and lead time on parts. Dormant stock has been reviewed and either associated with a piece of equipment in the facilities or scrapped. All non dormant parts have also been associated with a piece of equipment which has resulted in the ability to cross reference parts with equipment. Parts can now be requested through the Computer Maintenance Management System (CMMS) and FIS interface so an employee can request parts and have them picked and staged for assigned tasks. After evaluating the picking and staging process it was not implemented. The process would only apply to 30% of the preventative maintenance tasks and the benefits gained did not out weight the resources needed to make the system function. 4. Improved Purchasing processes have been established for both stock and non- stock parts. When stock items get to the minimum level, a purchase requisition is automatically generated in the form of a stock quote generator, so that the buyer can purchase replacement stock. The field staff is now able to fill out an automated requisition template that goes to planning and scheduling so that they can process a requisition to purchase the parts. The end user is notified through OCSD/810/PJ G:\wp.dta\agenda\FAHRIFAH R2003\ 1203\0~ 113.DART.doc Page 7 Book page 102 the e-mail system when a part has been ordered, expected delivery date, changes in expected delivery date and when it has arrived in the warehouse. 5. O&M Performance Management systems have been developed so that management, supervision and field staff can access information to monitor the performance of the work order system and the maintenance program. Reports are generated to measure wrench time, work order backlog, warehouse stock outs, and other measures to ensure that the agency is achieving best in class. In addition tracking reports have been developed show aging work orders and the status of the work order. This is very beneficial to operations so that they can track work progress and the status of a work order and determine if there needs to be some adjustment in the priority of the work based on changing plant conditions. Cost Analysis, Failure Analysis, and Life Cycle Analysis have not yet been fully developed, but the data is being captured so that the process can be put in place in the near future. 6. Improvement and Integration of Information Systems have been completed. The CMMS now has a Link to the Financial Information System (FIS) so that real-time information on the warehouse inventory can be accessed from the CMMS. In addition cost information is now shared between the FIS and CMMS so that repair and maintenance costs can be analyzed during decision making processes. Copeland Roland Integrated Sequential Processor (CRISP) has the ability to provide runtime hours to the CMMS so that work orders can be generated based on the amount of time a piece of equipment runs. A condition monitoring capacity within the CMMS has not been added but will be evaluated in the near future. 7. Treatment Plant Improvement program (J-42). This project has now been completed and 2, 144 ideas were generated during the staff workshops. 236 ideas will become part of future projects and 500 will be evaluated during future Capital Projects. One hundred were reviewed during the J-42 studies, of which 30 had an acceptable cost benefit and are being implemented. Approximately 1,243 ideas were rejected. In addition; 93,900 pieces of equipment have been reconciled, added to the CMMS database, and approximately 74,818 physical tags have been installed in the plants. 8. An adaptive work force has been created in the Electrical/Instrumentation and Mechanical and Power Production Divisions. Training has been provided to create an environment where personnel can cross train, allowing them to perform multi-trade tasks. This has allowed Senior Maintenance Workers to improve their mechanical skills and all levels of Mechanics are now performing more pipefitting tasks. Instrumentation and Electrical personnel have crossed over into each other's trade, where it has made the proper business sense to do so. As an example, some of the Instrumentation staff now performs 12 kV maintenance. A pay for performance compensation system was developed to reward staff for gaining additional knowledge. The Operations divisions began a gate exercise program for the critical areas of the in the plants. The operators reviewed and identified the gates that should be exercised and lubricated on a regular basis. The Preventive Maintenance/Exercise activity was entered into the CMMS and OCSD/810/PJ G:\wp.dtalagenda\FAHRIFAH R2003\ 1203\03-113. DART.doc Page 8 Book page 103 now generates on a regular cycle. This has allowed maintenance personnel to identify potential problems in a controlled environment so that repairs can be made in a scheduled mode. 9. O&M Organization Restructuring. The Maintenance divisions reduced the number of supervisors and this staff was used to create the Planning and Scheduling group. This reduction resulted in supervisors having 12 to 22 employees reporting to them with one or two lead technicians assisting with the day to day assignment of tasks to field's personnel. After four years of operating at this level it became apparent that more supervisors were needed and that lead technicians would return to performing tasks and assisting with special projects. Now the supervisors have an average of nine employees reporting directly to them; this change allows the supervisors to better manage the areas and be in daily direct contact with their employees. In fiscal year 1999-2000 the Central Generation Division (Division 870) moved from operations to Maintenance. This move resulted in the reduction of one Senior Supervisor in the Operations Division; in fiscal year 2002-2003 Division 870 merged with Division 850. The area and utility teams did not develop as they were envisioned in the DART plan. Operations, Maintenance and Process Engineering staff are still assigned a specific area of the plant but no one person is in charge of the multi trade team as the original plan spelled out. Instead the teams meet once a week to share information and troubleshoot problems they may be having in the area. These teams have great communication between each other and have taken ownership of the area for which they are responsible. Four additional tasks that were not in the original scope of work have also been completed: 1. The development of the Equipment and Instrumentation Database (EID). This is a process used to collect maintenance relevant information related to the demolition of existing facilities/equipment and addition of new facilities/equipment that are constructed during the Capital Improvement Program (CIP). This information is used for the timely development of the maintenance program to support the new facility. It also allows for the appropriate reduction in warehouse spares so when the facility or/equipment is taken out of service there is not an excessive amount of unused parts remaining in the warehouse. Spare parts recommended by the manufacturer are also reviewed and only those parts that have a long lead time or are critical to the process staying in service are added to stores. 2. The maintenance procurement practices have been reviewed and modified. This has resulted in the streamlining of the procurement practices, which has increased the accuracy, effectiveness and efficiency of the process. The maintenance planning group now has full oversight of the ordering process and is the link between purchasing and warehouse. These 6 people are responsible for tracking all maintenance requisitions, contacting vendors and ensuring parts are on site for scheduled work. This process allows the field staff to focus on completing maintenance tasks and allocates the appropriate personnel to focus on the procurement process. OCSD/810/PJ G:\wp.dtalagenda\FAHR\FAHR2003\1203\03-113.DART.doc Page 9 Book page 104 3. Development and Implementation of the Inspection and Work Management program for the Facilities Maintenance Division (430). This program has developed a planned maintenance program based on the inspection of Districts facilities and is supported by a work management process that combines the correct balance of corrective and preventative maintenance, refurbishment and capital replacement. 4. Reviewed and modified the Fleet Maintenance Program (Division 430). Changes were implemented to improve the process for capturing work and financial history as it related to the fleet activities as well as improve the efficiency of the work management process. In addition an evaluation of the current CMMS was conducted to determine if the system could effectively support Fleet Services. It was determined that CMMS is not an effective tool for managing the Fleet Services motor pool and a requirements list was developed to determine what type of system and what major functions it must have to support the fleet management process. OCSD/810/PJ G:\wp.dta\agenda\FAHRIFAHR2003\1203\03-113.DART.doc Page 10 Book page 105 Final Long-Range Biosolids Management Plan Executive Summary The Orange County Sanitation District (the District) currently produces approximately 650 wet tons of digested and dewatered Class B biosolids per day. By the year 2020, biosolids production is projected to increase by about 30 percent. The District relies on land application of its Class B biosolids in Kem and Kings Counties in California, and Class B biosolids land application at the Fort Mojave Indian Reservation in California, Nevada, and Arizona. Moreover, the District is committed to environmentally sound biosolids management practices that meet the stringent federal, state, and local regulatory requirements. Counties throughout California and Arizona have developed, or are in the process of developing, ordinances that severely restrict or ban the land application of Class B biosolids. Recently Kem and Kings Counties banned land application of Class B biosolids. It has become clear that future requirements for managing biosolids will be more restrictive and costs will increase as current options are eliminated. The dynamic regulatory issues, land application ordinances and bans, and public perception challenges prompted the District to develop this Long-Range Biosolids Management Plan. The goal was to develop a sustainable, reliable, and economical program for long-range biosolids management. This Long-Range Biosolids Management Plan includes four major elements: 1. Identify long-term potential Southern California Class A biosolids products and product markets. 2. Identify the onsite and offsite facility options for manufacturing marketable products while optimizing the use of the District's facilities necessary in treating wastewater. 3. Develop a flexible implementation plan for positioning the District to be able participate in multiple markets. 4. Continue to beneficially reuse biosolids and maintain conformance with the National Biosolids Partnership (NBP) Code of Good Practice. Long-Range Biosolids Management Plan Development There is a wide range of products that can be developed from biosolids. The strategy for the District will be to focus its resources on developing an economical product for targeted sustainable markets. To develop and select the most sustainable biosolids management options, the consultant team utilized a business-model assessment. First, the long-term sustainable biosolids product markets were identified. Next, the steps necessary to manufacture suitable biosolids-based products for these markets were evaluated. The relationship between the top five long-term sustainable biosolids markets and products that can be generated for these markets is summarized as follows: • Horticulture -Blending and Bagging for Retail Outlets: Compost, dry pellets and granules, and organo-mineral fertilizer products. W052003003SCO/LW1232 ES1 .DOC/031500006 Book page 106 FINAL LONG-RANGE BIOSOLIDS MANAGEMENT PLAN EXECUTIVE SUMMARY • Horticulture -Ornamental and Nurseries: Compost, dry pellets and granules, and organo-mineral fertilizer products. • Horticulture -District Member Cities and Agencies: Compost, dry pellets and granules, and organo-mineral fertilizer products on municipal lands. • Direct Energy Production: Class B biosolids cake and dry pellets. • Silviculture -Shade Tree Programs: Compost or dry pellets and granules, and organo- mineral fertilizer products. Each market consumes several biosolids-based products, and most products can have multiple markets. For example, all five markets accept the dry pellets and granules. Next, the consultant team developed an economic model and performed an assessment of the 22 most important critical implementation factors, including potential odors, traffic impacts, public perception, product sustainability, and ease of implementation/ siting. These two parallel activities allowed for the true cost of each option to be assessed and compared. Based on this evaluation, the most viable biosolids product manufacturing processes are: 1. Composting 2. Heat drying 3. Energy recovery 4. Organo-mineral fertilizer manufacturing 5. Heat drying with soil This evaluation also determined that diversification of products, product markets, and marketing contracts, as well as the availability of failsafe backup options, are critical elements to protect the District from the effects of weakening markets and failed contracts. These elements are critical because each product market has associated weaknesses, and it will likely take time to develop a product for a new market, contracts with a company within that market, or both. Finally, the District needs to maintain its current land application capacity and options, including the Class A biosolids alkaline stabilization process at its farm in Kings County and other land application sites, for as long as it is feasible and economically sound, while this long-range plan is implemented. Recommendations and Costs The biosolids management program is designed to provide flexibility and allow the District to diversify products and manufacturing through participation in both District-owned and merchant facilities. The consultant team recommends diversification using the following approach, primarily to reduce financial risk: 1. Maintain at least three different product manufacturing options at any given time. 2. Optimize capital and operation and maintenance (O&M) costs at the District treatment plants as part of implementation of the long-range plan. 3. Limit maximum participation for any market to one-half of the total biosolids production. 4. Limit biosolids management contracts to a maximum of one-third of total biosolids production per merchant facility, and one-half per contractor (for contractors with multiple product manufacturing facilities). 5. Maximum capacity for each District-owned product manufacturing facility to be one-half of the total biosolids production. 6. Explore funding options for in-county facilities (private capital, District capital, or both). W052003003SCO/LW1232 ES1 .DOC/031500006A 2 Book page 107 FINAL LONG-RANGE BIOSOLIDS MANAGEMENT PLAN EXECUTNE SUMMARY 7. Allocate up to 10 percent of biosolids for participation in emerging markets. 8. Pursue Orange County based product manufacturing facilities and maximize the use of horticultural products within the District service area by member agencies and through developing public-private partnerships. 9. Maintain capacity and options at the District's Central Valley Ranch. 10. Pursue failsafe backup options (landfilling, alternative daily cover [ADC] for landfills, and dedicated landfilling) to acquire a 100 percent contingency capacity. Table ES-1 presents a summary of the Plant Nos. 1 and 2 onsite improvements, associated capital costs, and the year capacity is needed. With the current biosolids processes, Plant No. 1 dissolved air flotation thickener (DAFT) capacity will be reached in year 2013, digestion capacity will be reached in year 2013, and dewatering capacity will be reached in year 2007. With implementation of the proposed primary and WAS thickening improvements, the need for additional dewatering and digestion capacity will be postponed to year 2013 and beyond year 2020, respectively. For Plant No. 2, similarly, with the addition of new primary sludge and WAS thickening improvements, the existing digestion and dewatering capacity will be adequate through the year 2020 and beyond. TABLE ES-1 Plants 1 and 2 -Onsite Process Improvements and Expansion Onsite Biosolids Processing Facilities Plant 1 Onsite Biosolids Processing Facilities Primary Sludge Thickening (Centrifuge) WAS Thickening (GBT or Centrifuge) Digester Pretreatment (Ultrasound) Dewatering (Centrifuge) Plant 2 Onsite Biosolids Processing Facilities Digester Pretreatment (Ultrasound) Dewatering (Centrifuge) Notes: Year Capacity Needed 2013 2007 Note 2 2013 Note 2 Note 3 Capital Cost, Million $1 17.4 10.7 10.1 55.6 6.5 39.7 1The capital costs are for onsite process improvements only. The upgrade of existing digestion facilities will be as planned in the capital improvement program (CIP) and ls not included here. 2The District is currently evaluating project delivery options for implementing ultrasound. 3Plant No. 2 has adequate dewatering capacity through the year 2020. However, centrifuge dewatering will result in reduction of biosolids cake volume and reuse costs and should be considered for implementation. GBT = gravity belt thickener To optimize facilities sizing, pilot testing of thickening (primary sludge, WAS, and combined sludge) and dewatering may be conducted. For digesters, the impact of an increase in digester feed solids (due to improved thickening) will be evaluated on the digester mixing systems, heat exchangers, and ammonia concentration in the digesters and dewatering recycles. Because additional dewatering is needed at Plant No. 1 and similar centrifuge equipment is used for the thickening and dewatering, full-scale centrifuges will be considered for testing. Upon completion of the thickening test, the centrifuges will be relocated to the Plant No. 1 dewatering building to provide the needed capacity and allow for evaluating the impact of the dryer biosolids cake on the cake pumping system and product manufacturing technologies. Testing for product manufacturing technologies will be conducted at the District's Central Valley Ranch and/ or existing merchant facilities that use the processes W052003003SCO/LW1232 ES1.DOC/031500006A 3 Book page 108 FINAL LONG-RANGE BIOSOLIDS MANAGEMENT PLAN EXECUTIVE SUMMARY under consideration. Using full-size equipment for thickening and dewatering will also provide sufficient biosolids for testing product-manufacturing technologies. It is anticipated that land application markets will continue to become less reliable due to public perception and political issues and may not be available in 3 to 5 years. The Biosolids Management Program Implementation Plan, therefore, focuses on more reliable Orange County and Southern California reuse markets through developing high-value products. As implementation of District-owned in-county composting or heat-drying facilities could take 8 years or longer, the program includes activities to immediately begin obtaining new merchant facility contracts that would enable the District to participate in more stable biosolids reuse markets. The merchant facilities will bridge the gap between the phase-out of existing reuse contracts and the startup of future District-owned facilities. Core elements of the implementation program include: • Participate in sustainable reuse markets through manufacturing higher-value products such as compost, dry pellets and granules, organo-mineral fertilizers, and energy. • Develop in-county composting (i.e., Central-North County, Joint Composting with South Orange County Wastewater Authority [SOCWA], etc.). • Develop in-county thermal drying facilities (onsite or offsite). • Participate in merchant composting and organo-mineral product manufacturing facilities. • Pursue merchant energy production (co-combustion) to allow participation in non- cropping markets. • Explore benefits and use of emerging biosolids product manufacturing technologies such as d1ying with.hot soil and energy fuels (Le., char). • Maintain failsafe backup 1·euse capacity for land application of chemically stabilized biosolids ('tule Ranch) and through reuse of biosolici,s products as ADC at landfills. • Obtain failsafe backup landfill capacity for biosolids Jandfilling (Orange County Integrated Waste Management Department [OCIWMD], Holloway Mines, etc.) Although the program has identified the need to add new thickening facilities, the digestion facilities identified in the validated capital impmvement program (CIP) w:ei:e eliminated. The capital cost of the program does not have a significant impact on the CIP res01ll'ce allocation until Fiscal Year (FY) 2007 /2008. TI1e major impacts occnr when construction of District- owned heat-drying and/ or composting facilities is prnjected to be :initiated, if these facilities are financed by the District. Merchant facilities are typicaJly funded through management contract tipping fees. The District should also explore conb'act terms that p1·ovide funding for in-county facilities through private capital, District capital, or both. In the past 3 years, the tipping fees f; r biosolids land application have risen from $25 per wet t0n (pwt) to $35 pwt, representing an increase of 40 percent In the interim peliod, the tipping fee is expected to incTease to $45 to $50 for Class A bioselids land application. The Cl1nent biosolids cake solids concenb·ation is in the range of 20 to 22 percent, resulting in a cost of $200 to $250 per dry ton (pdt) for Class A biosolids land application. The cost for manufacturing high-value products for sustainable markets is estimated at $50 to $70 pwt. With the implementation of the proposed onsite improvements, the cake solids concentration is expected to be in the range of 26 to 28 percent, resulting in a cost of $195 to $270 pdt for high-value products, This modest cost increase provides the District with diverse and reliable product markets and product manufacturing options, reduces financial risks, improves program reliability, and minimizes potential for future cost escalations. W052003003SCO/LW1232 ES1 .DOC/031500006A 4 Book page 109 FINAL ORANGE COUNTY SANITATION DISTRICT (714)962-2411 Mailing Address: P.O. Box 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 0 CSD 2/ 13/03 December 10, 2003 ACTION ITEM: F AHR03-108 OCSD Corporate Identity and Public Awareness Project, Estimated Costs Based on Request for Information Proposals Project Components Estimated Cost 1. Initial Baseline Research $50,000 • 4 focus groups • 500 telephone surveys • one-on-one employee and board member interviews 2. Develop Corporate Identity Manual (includes review of current corporate identity system) $25,000 New Name/Logo/Identity Development • Presentation and approval process with executive staff and board members • Name/logo trademark search • Final artwork Public Awareness/Marketing Campaign (for new or existing identity) • Internal -training for staff, workshop/event, Board/stakeholder event • External -letters/mailing to service area and stakeholders, public service announcements, media plan and event, launch ads/advertising, news/web site articles, displays t 5. :F• inal Validation Research 4 focus groups 500 telephone surveys one-on-one employee and board member interviews Total Estimated Project Budget NOTES: $60,000 $140,000 $50,000 NTE $325,000 • $125,000 has been budgeted for this work in the current Fiscal Year 2003-04 budget. The remaining $200,000 will be a line item in the Fiscal Year 2004-05 budget. • Administrative costs, including reports/proposals, meetings and presentations are included in the estimated costs for each component above. Costs for creating new collateral material are not included in this project's budget. • A detailed breakdown of project tasks and deliverables are included in the Statement of Work on pages 51-55 of the agenda package. OCSD/GM/COMl30/CB:dk Page 1 of 1 M:\Graphics\DOCS\Corp ID Project 2003\Corp!Dstudy_BudgetEstimatesl203 doc LAW OFFICES OF WOODRUFF, SPRADLIN & SMART A PROFESSIONAL CORPORATION TO : FROM: DATE: RE: MEMORANDUM Chair and Members of the Board of Directors Orange County Sanitation District General Counsel December 10, 2003 Crow Winthrop Development v. OCSD; and 3121 Michelson Drive v. OCSD Court of Appeal Decisions I am pleased to report that the Court of Appeal -Fourth Appellate District, Division Three, issued its rulings and decisions on December 5, 2003, affirming the judgments of the Superior Court in favor of the District. This is hopefully the end of a very long and difficult process involving a developer who was seeking to develop and construct nearly four (4) million square feet of new commercial structures, including offices, residences, hotels, restaurants, and commercial uses, and to do so without paying any Capital Facilities Capacity Charges ("CFCC's"). We have maintained from the outset that the developer's claim was baseless, both in fact and on the law. We presented a very strong and complete case to the Tria l Court and asserted six grounds for denying the Developer's petition. The Court agreed with our position and ruled in our favor on each point. The Court of Appeal decision is very narrow, but very important. The Court opted to decide the case on a single, though arguably the most important point, namely that the Dsitrict's Ordinance establishing and imposing CFCC's on new construction of buildings that connect to the District's sewer is valid and does not violate the provisions of Proposition 218. By so ruling the Court of Appeal found it unnecessary to decide the several other issues and challenges brought by Crow Winthrop. The primary importance of validating our Ordinance is that is secures the approximate $30 million of CFCC's collected since 1998, as well as assuring that future charges can likewise be collected as planned for in the CIP budgets. TLW:jlo Enclosures \178516\1 HOMAS L. WOODRUFF GENERAL COUNSEL Fi led 1215/03 Cro,, Winthrop Development v Orange Count)-Sanitation Dist CA4i3 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules ol Court, rule 977(a), prohibits courts and parties from citrng or relying on opinions not certified for publication or ordered published, except as specified by rule 977(b) This opinion flas not been certified for publication or ordered published for purposes of rule 977, TN THE COURT OF APPEAL OF THE STATE OF CALIFOR."I\TIA FOURTH APPELLATE DlSTRICT DIVJSION THREE CROW WINTHROP DEVELOPMENT LIMITED PARTNERSHIP, Plaintiff and Appellant, V ORANGE COUNTY SANITATION DISTRJCT, Defendant and Respondent. G030324 (Super. Ct. No. 01 CC 11349) OPINION Appeal from a judgment of the Superior Court of Orange County, Thomas N. Thrasher, Sr., Judge. Affirmed. Horvitz & Levy, Frederic D. Cohen and Nina E. Scholtz; Rus, Miliband & Smith, Ronald Rus and Joel S. Miliband; McCormick, Kidman & Behrens, Russell G. Behrens and David D. Boyer for Plaintiff and Appellant. Woodruff, Spradlin & Smart, Thomas L. Woodruff and M. Lois Bobak for Defendant and Respondent. * * * Crow Winthrop Development Limited Partnership appeals from the judgment of the superior court denying its petition for writ of mandate challenging the Orange County Sanitation District's connection fe_~system as violative of :'\rticlc XllI D of the California Constitution, also knovvn as Proposition 218. We affinn since the fee at issue here is imposed as an incident of development, not an incident of mvnership. 1. FACTS On July 21, 1999, the Orange County Sanitation District enacted Ordinance No. OCSD-09, which adopted a new capital facilities capacity charge and connection fee system. Under section 1.2 of the ordinance, the capacity charge is "a one-time, non-discriminatory charge imposed at the time a property is connected to the District's system .... " Section 1.3 of the ordinance defines a connection fee as a "fee equal to the cost necessary to physically connect a property to the District's system, including but not limited to installation of meters, meter boxes, pipelines and appurtenances to make the connection, that does not exceed the actual cost of labor, materials, and overhead for the installation of those facilities." Under the ordinance, for commercial or industrial buildings the capacity charge is set according to three categories: low demand, average demand, and high demand. For each category, the ordinance sets a different base charge per 1,000 square feet of building area, and the prices range from $110 for low demand to $1600 for high demand. Each type of use is categorized based upon the quantity and strength of the \\·astewater flow historically generated by that use. In 1985, Crow purchased 90 acres of property known as Park Place, from Fluor Engineers. In 1975, Fluor Engineers had paid a connection fee for all of Park Place, which included an existing 1.9 million square foot building. Sometime after the district's adoption of the new capacity charge, Crow sought construction permits for new buildings, including 2.4 million square feet of high- rise office and residential buildings, a 308-room hotel, and numerous retail and restaurant facilities. 2 In September 2001, facing the district's new capacity charge, Crow filed a petition for writ of mandate against the district. Crow alleged that the charge violated Proposition 218, and sought a court order preventing the district from imposing or collecting it. Crow also sought a refund of all such capacity charges collected since the passage of Proposition 218. The trial court denied Crow's petition, holding that the capacity charges do not in fact violate Proposition 218. 1 Even if it was, Crow's action was time-barred. This appeal followed. II. DISCUSSION A. Proposition 218 Overview Proposition 218 was passed in 1996 by the electorate to plug certain perceived loopholes in Proposition 13. (See Throckmorton, What is a Property Related Fee? An Interpretation of California's Proposition 218 ( 1997) 48 Hastings L.J. 1059; see also Patel, Is Nothing Certain but Death? The Uncertainty Created by California's Proposition 218 (2001) 35 U.S.F. L. Rev. 385.) Specifically, by increasing assessments, fees, and charges, local governments tried to raise revenues without triggering the voter approval requirements in Proposition 13. (See Ballot Pamp., Gen. Elec. (November 5, 1996), argument in favor of Prop. 218, p. 76.) Proposition 218 added articles XIII C and XIII D to the California Constitution.2 Article XJII D, section 3 provides that "[n]o tax, assessment, fee, or charge shall be assessed by any agency upon any parcel of property or upon any person as an incident of property ownership except: [~] ... [~] ... Fees or charges for property related services as provided in this article." (Emphasis added.) A "fee" or "charge" is defined in article XIII D, section 2, subdivision (e) as "any levy other than an ad valorem tax, a special tax, or an assessment, imposed by an The District's request for judicial notice of certain documents that the trial court did not consider is denied. 2 We are only concerned here with article Xlll D, specifically cerlain provisions relating to fees and charges 3 agency upon a parcel or upon a person as an incident of property ownership, including a user fee or charge for a property related service." A property related fee or charge cannot be "imposed ... by any agency unless it meets all of the following requirements: (1) Revenues derived from the fee or charge shall not exceed the funds required to provide the property related service. (2) Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed. (3) The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel. (4) No fee or charge may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question .... " (Cal. Const., art. XIII D, § 6, subd. (b).) B. The Capacity Charge Is Not Assessed As an Incident of Property Ownership Article XIII D, section 6, subdivision (b)(3) applies only to fees imposed "as an incident of property ownership, including ... a charge for a property-related service." A property-related service is defined as "a public service having a direct relationship to property ownership." (Cal. Const., art. XIII D, § 2, subd. (h).) In other ,vords, Proposition 218 restricts only those fees imposed directly on property owners solely because that person owns property. (See Apartment Assn. of Los Angles County, Inc. v. City of Los Angeles (2001) 24 Cal.4th 830, 836.) In Apartment Assn., supra, 24 Cal.4th 830, the plaintiffs alleged that a fee imposed on apartment owners to cover the cost of a city inspection program was invalid because it violated A11icle XIII D, section 6. The court disagreed and held that the fee was not imposed on property owners as an incident of property ownership because it only applied to "those landowners who choose to engage in the residential rental business, and only while they are operating the business." 4 (Id. at p. 840.) The court recognized that ·'Proposition 13 \Vas directed at taxes imposed on prope11y owners,'' and that Proposition 218 was created to close one of Proposition 13 ·s loopholes by prohibiting unapproved prope11y taxes disguised under the labels, "'fees,' 'charges,' or 'assessments,"' imposed on property owners as such. (Id. at pp. 838-839.) However, because the inspection fee ceased when the landlord ceased to rent the property, even if he or she still O\Vned the prope11y, it was not the type of fee Proposition 218 was intended to prevent. (Id. at 839.) By contrast, in Howard Jarvis Taxpayers Assn. v. City of Salinas (2002) 98 Cal.App.4th 1351, a storm drainage fee assessed against all developed prope1iy within a city did \'iolate Proposition 218, because it applied to "each and every developed parcel of land within the City." (Id. at p. 1355, emphasis added.) The court noted that the fee applied to property owners even if the owner maintained their own storm \Vater runoff, and as such, the fee was a "property- related"' fee imposed as an incident of property ownership. (Id. at p. 1354.) Here, the capacity charge is like the inspection fee in Apartment Assn. in that it applies only to owners who want take some specific action with their prope11y. It is unlike the storm drainage fee in Howard Jarvis Taxpayers Assn. in that it does not apply to all parcels, regardless of the use to which they are put. Here, the capacity charge ordinance only applies to those properties connecting to the Sanitation District's sewer system, and a prope11y cannot be connected to the system unless the ovmer specifically requests a connection. The liability for paying money to the district comes from the fact that a property owner has requested permission to connect to the system, independent of ownership as such. Presumably a renter who sought connection to the sev,'er system \\'Ould be subject to the charge. III. DJSPOSITJON Our conclusion regarding the applicability of Proposition 218 obviates the need to address the problem of whether the lawsuit is also time- barred. (Sometimes it is more economical to address the merits of a case first 5 rather than a procedural challenge.) The judgment denying Crmv's petition for writ of mandate is therefore affirmed. Respondent shall recover its costs on appeal. SILLS, P. J. WE CONCUR: RYLAARSDAM, J. FYBEL, J. 6 Filed l :215103 3121 Michelson DriH \. Orange County San itation Dist CA4 '3 NOT TO BE PUBLISHED IN OFFICIAL REPORTS Cal1forn1a Rules of Court, rule 977(a), prohibl[s courts and parties from citing or relying on opinions not certified. for publication or ordered published, ellcept as specified by rule 977(b). This opinion f\as not been certified for publication or ordered published for purposes of ru le 9T7 IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA FOURTH APPELLATE DISTRICT DIVISION THREE 3121 MICHELSON DRIVE LLC, Plaintiff and Appellant, V. ORANGE COUNTY SANITATION DISTRICT, Defendant and Respondent. G030933 (Super. Ct. No. 01 CC 16520) OPINION Appeal from a judgment of the Superior Court of Orange County, James M . Brooks, Judge. Affinned. Horvitz & Levy, Frederic D. Cohen and Nina E. Scholtz; Rus, Miliband & Smith, Ronald Rus and Joel S. Miliband; McCormick, Kidman & Behrens, Russell G. Behrens and David D. Boyer for Plaintiff and Appellant. Woodruff, Spradlin & Smart, Thomas L. Woodruff and M . Lois Bobak for Def end ant and Respondent. * * * 3121 Michelson Drive LLC (3121) is the owner of a 2.3-acre site that is part of a 90-acre parcel of property known as Park Place. On July 21, 1999, the Orange County Sanitation District enacted Ordinance No. OCSD-09, which adopted a new . ' .capital facilities capacity charge and connection fee system. Sometime after the district's adoption of the ordinance and under protest, 3121 paid the capacity charge for its ne,v building located in Park Place. Crow Winthrop Development Limited Partnership is the owner of the 90- acrc parcel on which 3121 is located. On September 4, 2001, Crow filed a petition for writ of mandate challenging the Sanitation District's Capacity Charge system as violating Anic!e XIII D of the California Constitution, also known as Proposition 2 I 8.1 The trial court held that Crow's action was barred by its failure to file a validation action within 120 days of the enactment of the ordinance as required by Government Code section 66022. (All further statutory references are to that Code.) Crow appealed, and we are affirming the trial cou1i's judgment in the companion case, number G030324. On December 28, 2001, t,vo weeks after the trial court's decision in the CrO\v case, 3121 filed a petition for writ of mandate almost identical to the petition filed by CrO\v challenging the district's capacity charges under Proposition 218. The district filed a demurrer asserting that the 120-day statute of limitations and 3121 's failure to bring a timely validation action barred 3121 's petition. The trial court sustained the district's demurrer without leave to amend and this appeal follovv·ed. In light of our decision in the companion case, the judgment must be affirmed. In brief, the capacity charges do not violate Proposition 218 because they are not imposed as an incident of property ownership. WE CONCUR: RYLAARSDAM, J. FYBEL, J. SILLS, P. J. 3 121 's request for judicial notice of the ballot materials concerning Proposition 218 is hereby granted. 2 l FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Michael White, Controller Meeting Date To Bd. of Dir. 12/10/03 12/17/03 Item Number Item Number 14(b) SUBJECT: TREASURER'S REPORT FOR THE MONTH OF NOVEMBER 2003 GENERAL MANAGER'S RECOMMENDATION Receive and file Treasurer's Report for the month of November 2003. SUMMARY Pacific Investment Management Co. (PIMCO), serves as the District's professional external money manager, and Mellon Trust serves as the District's third-party custodian bank for the investment program. 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 0.42 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 $1 million par of the Philip Morris-Altria corporate bond with an April 2004 maturity, representing 0.3 percent of the portfolio holdings, whose rating with Moody's has fallen from A2 to Baa1 and then to G:lwp.dtalfin\220\white\F AHR\Monthly Treasurer Report\2003-04\TREASRPT121003.doc Page 1 Baa2, and with S&P from A-to 888. During the month of November, PIMCO sold $4 million par of this original $5 million holding at a price of $101.9 for a realized loss of $134,400. PIMCO believes based on the underlying assets of the parent company, that the District would suffer a severe unwarranted loss if the remaining $1 million holdings were 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 • ~ This item has been budgeted. (Line item: 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). The remaining $107.0 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 $168,911,200. The District received $14.7 million from the fiscal year 2003-04 first property tax and user fee apportionment from the County of Orange on November 26. Of this amount, $12 million was deposited within the District's Liquid Operating Portfolio with Mellon Bank with the remainder used to fund current obligations. 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. G:lwp.dtalfin\220\white\FAHR\Monthly Treasurer Report\2003-041TREASRPT121003.doc Page2 Book Balances Estimated Investment Accounts November 30, 2003 Yield(%) State of Calif. LAIF $ 31,000,246 1.57 Union Bank Checking Account 1,003,239 0.93(1) PIMCO -Short-term Portfolio 49,784,182 1.40 PIMCO -Long-term Portfolio 381,297,099 2.70 Petty Cash 5.000 N/A TOTAL $463 089 Z66 2.48 Debt Service Reserves wfTrustees $168 9:11 200 2.14 (1) This is the annualized yield for the month of October. The November 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 G:lwp.dtalfin\220\white\F AHRIMonthly Treasurer Report\2003-041TREASRPT121 003.doc Page 3 Prepared by Finance, 12/10/2003, 11 :26 AM Monthly Investment Balances by Type- Last Six Months $ 7 oo, o oo, o oo -1·······················································-·-· .. ······---···· .... • ...... -........................................................ , .................................................................................................................................... , .......................... . 111111111111111111111 111111111111111111111 $600,000,000 --1------------------1 $500,000,000 -1-----------------1 $400,000,000 +-- $300,000,000 I --- $200,000,000 I l~ $100,000,000 I R®: $0 I h'YYY> June 2003 July 2003 August 2003 September 2003 181 PIMCO -Long-term rJ PIMCO -Short-term ii COP Debt Reserves mLAIF •Bank Accts •Petty Cash G:\excel.dta\fin\220\white\Treasury Management\Monthly Investment Balances Graph.xis October 2003 : ; 1---l f i i ! ------, November 2003 Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund November 30, 2003 Par Value Book Value Market Value Rate Balance October 1, 2003 $35,500,246 $35,500,246 $35,500,246 1.572 Deposits: 11/18/2003 11,600,000 11,600,000 11,600,000 1.572 Withdrawals: 11/6/2003 (4,600,000) (4,600,000) (4,600,000) 1.572 11/12/2003 (1,000,000) (1,000,000) (1,000,000) 1.572 11/13/2003 (500,000) (500,000) (500,000) 1.572 11/14/2003 (3,600,000) (3,600,000) (3,600,000) 1.572 11/20/2003 (3,000,000) (3,000,000) (3,000,000) 1.572 11/21/2003 (3,400,000) (3,400,000) (3,400,000) 1.572 Total Withdrawls (16,100,000) (12,700,000) (12,700,000) 1.572 Balance October 31, 2003 $31,000,246 $34,400,246 $34,400,246 1.572 Yield 1.572 1.572 1.572 1.572 1.572 1.572 1.572 1.572 1.572 1.572 PIM C 0 December 8, 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 November 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: Despite a spate of strong economic releases, muted inflation expectations provided the backdrop for most fixed-income sectors to post modest gains in November. U.S. Treasuries returned 0.13%, while the S&P 500 was up 0.71% for the month. Yields rose across intermediate maturities, with bonds maturing between 2 and 10 years underperforming both shorter and longer maturities. Mortgage-backed securities returned O .21 %, outpacing Treasuries by 15 basis points after adjusting for duration. Corporate bonds also performed well as the Lehman Credit Index returned 0.46%, for a duration-adjusted excess return of 35 basis points. Lower quality investment grade names outperformed as Baa-rated bonds led Treasuries by 59 basis points on a duration-adjusted basis. High yield bonds continued to provide excellent returns across the quality spectrum, with the overall Lehman High Yield Index posting an absolute return of 1.52% for the month ( + 148 basis points adjusted for duration). Revisions to third quarter GDP reflected an even more remarkable 8.2% annualized pace than the 7 .2% originally reported. Growth was driven by personal consumption expenditures, equipment/software spending and residential fixed investment, with an increase in inventory stockpiling accounting for a large part of the revision. Manufacturing accelerated, with the ISM index surging past the 60-point mark, indicating that manufacturing job losses are ending and perhaps reversing. Indeed, the Bureau of Labor Statistics' employment report indicated net job increases of 126,000 in October, beating consensus estimates and pushing the unemployment rate down to 6.0% from 6.1 %. In addition, consumer confidence reached its highest level in over a year, 91.7 as measured by the Conference Board index. Still, inflation remained benign; both the October CPI and PPI figures showed no significant price increases being borne by consumers or producers, respectively. Mr. Mike White, CPA Orange County Sanitation District December 8, 2003 Page2 Treasury yield changes during the month of November are summarized as follows: • 3-month bills: -2 basis point to 0.93% • 6-month bills: unchanged at 1.03% • 2-year notes: +22 basis points to 2.05% • 5-year notes: + 11 basis points to 3 .3 5% • IO-year notes: +4 basis points to 4.33% • 30-year notes: unchanged at 5.13% Performa11ce A ttribution: Long-Term Portfolio The Long-Term portfolio that PIMCO manages on behalf of Orange County Sanitation District generated a total return of 0.10 percent for the month of November, outperforming the Merrill Lynch 1-5 year Government Corporate Index by 11 basis points. The following points summarize returns for the period ended November 30: • The Long-Term portfolio outperformed the benchmark by 11 basis points for the month. • For the twelve-month period, the Long-Term portfolio returned 4.18%, outperforming the benchmark by 10 basis points. • Portfolio duration, near the index, was neutral for performance. • Broader-than-index yield curve positioning was 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 0.09 percent during the month of November, performing in line with the 3-month Treasury Bill Index for the month. The following points summarize returns for the period ending November 30: • The Liquid portfolio performed in line with the benchmark for the month. • For the twelve-month period, the Liquid portfolio returned 1.26%, outperforming the benchmark by 15 basis points. • Use of higher yielding securities such as commercial paper and short-term notes contributed to performance. Mr. Mike White, CPA Orange County Sanitation District "2003 COP Proceeds -Future Construction" Portfolio December 8, 2003 Page3 The COP Proceeds portfolio that PIM CO manages on behalf of Orange County Sanitation District generated a total return of 0.09 percent during the month of November, performing in line with the 3-month Treasury Bill Index. The following points summarize returns for the period ending November 30: • 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 a1td 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 terms and resist a currency revaluation. 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 Mr. Mike White, CPA Orange County Sanitation District December 8, 2003 Page4 short maturity focus will allow PIMCO to reap gains by "rolling down" the steep short/intennediate 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 tenn 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, CF A Senior Vice President Orange County Sanitation District for the month ending November 30, 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 384,450,000 380,282,394 2.70 With Accrued Interest 50,017,237 50,335,025 1.40 2003 COP Proceeds -Future Construction -2203 Market Value Book Value Yield to Maturity With Accrued Interest 107,293,213 107,431,794 1.41 Without Accrued Interest 381,324,661 377,157,055 2.72 Without Accrued Interest 49,787,577 50,105,364 1.41 Without Accrued Interest 106,927,129 107,065,709 1.41 MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 30 November 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 % INTEREST RA TE CHANGE Dollar Impact (gain/loss) of 1 % Change: 15.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: ( see attached schedule) 15.1.5 PORTFOLIO MATURITY % of Portfolio Maturine: within 90 days: 15.1.6 PORTFOLIO QUALITY A veral!e Portfolio Credit Oualitv: 15.1.7 SECURITIES BELOW "A" RATING % of Portfolio Below "A": 15.1.8 INVESTMENT POLICY COMPLIANCE "In Comoliance" 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 outperformed the benchmark by I basis point for the monith, ancfl by 5 basis points fiscal year-to-date. • PIMCO's emphasis on higher yielding securities such as commercial paper an,d short-term notes contributed to performance. G:lwp.dta\On\220\whlte\Treasury Mgmt\LIQOS00-03-11.RPT.doc Page 1 of 1 $50,017,237 $50,016,650 $50,335,025 $50,337,832 0.33 0.20 $165,057 0% 51% ''AAA'' 0% Yes Portfolio Index 0.09 0.08 0.29 0.24 1.26 1.11 0.45 0.40 MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 30 November 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%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 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-Term portfolio outperformed the benchmark by 11 basis points for the month, and by 23 basis points fiscal year-to-date. • Portfolio duration, near the index, was neutral for performance. • Broader-than-index yield curve positioning was positive for performance as yi~lds 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 of 3 $384,450,000 $384,500,951 $380,282,394 $381,090,782 2.24 2.47 $8,611 ,680 0% 14% AAA 0% No* Portfolio Index 0.10 -0.01 1.23 0.96 4.18 4.08 -0.05 -0.28 • Cofl)orate 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. *Compliance Issues: MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 30 November 2003) Page 2 of 3 $1,600,000 par of United Airlines (UAL) Pass-Through 200l-l-C (En.hanced Eguipmenf Trust Certificate {EETC) -909317BC2), 6.831 % coupon, 9/ l/2008 maturity, representing 0.42% of the portfolio holctings on a par basi5 was purchased on 8/10/2001; and subseque11tly 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 8, and shortly thereafter on Dccem ber 9. 2002, dovmgraded the issue one notch further to B-. On August 7, 2003, S&f> downgraded the issue to CCC+, while Moody's followed _suit on August 28; 2003 with a downgrade to CA. Tbe District's investment policy requires a minimum rating of A3 by M0ody's OJ" A-by S&P, with at least a BBB rating in the event of a split. On November 20, UAL reported income of $25 million in October, excluding reorganization expenses of $149 million, meeting requirements of its debtor-in-possession bankruptcy financing for the ninth straight month. UAL ended October with a cash balance of about $2.5 billion. 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 diifficul t to predict. PIMCO 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. $1.000,000 par of Philip Morris-Altria NT (cusip 718154CH8), 4/1/2004 maturity, representing 0.3% 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 from A2 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 p-olicy 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. In November, PIMCO sold $4,000,000 par (of the $5,000,000 original holding) at a price of 101.9 for a realized loss of$134,400. 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, PIMCO'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 November 24, Philip Morris was found not liable in a case brought by the wife of a man who smoked Marlboro cigarettes and died after developing lung cancer. This case, as well as other recent court rulings have been Altria's favor and continue to dampen the legal risks faced by the company. PIMCO believes Altria is unlikely to sacrifice good subsidiaries to fond the bad one, which would create a bad precedent for future court cases. PIMCO continues 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. MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 30 November 2003) 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 least a BBB in the event of a split rating. Page3 of3 • $3,500,000 par of Ford Motor Credit securities ($2.5 million represente,d by cusip 345397SJ3 maturing 7 /16/04 and $1 million represented by c.usip 345397GV9 maturing 5/l 5/05), representing 0.91% of the portfolio holdings on a par basj:s. The secUiities were downgraded on 10/16/2001 by S&P from A to BBB+, then to BBB on 10/25/02, and then to BBB-on 11/13/03. Moody's downgraded the securities on 1/16/,02 from A2 to A3. • $3,000,000 par of General Motors Acceptance Corp securities (cu:sip 3704258D3) maturing on August 28, 2007, representing 0.78% 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 from A2 on 6/14/03. • $ l,750,000 par of Virginia Electric Power NT securities (cusip 92 7804ENO), maturing in 2006, represents 0.46% of the portfolio holdings on a par basis. The security was downgraded on 10/21 t2002 by S&P from A-to BBB+, but continues to carry a Moody's rating of A3 , G:\wp.dta\jin\220\while\Treasury Mgmt,L-T0B00-03-11 .RPJ'.doc LIQUID OPER-PlMCO -OCSF07511102 Description CASH & CASH EQUIVALENTS U.S. DOLLAR INTEREST COMMERCIAL PAPER -DISCOUNT FED HM LOAN BNK -LESS THAN 1 YR FEDERAL HOME LOAN MORTGAGE -LESS THAN 1 FNMA ISSUES -LESS THAN 1 YR MUTUAL FUNDS REPURCHASE AGREEMENTS 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 11/30/2003 Cost Shares Par Base 232,467.79 1,000,000.000 999,008.33 '6,900,000.000 6,871,741.11 '6,800,000.000 6,769,992.50 5,000,000.000 4,981,130.00 207,675.010 207,675.01 5,000,000.000 5,000,000.00 5,500,000.000 5,472,232.35 30,407,675.010 30,534,247.09 30,407,675.010 30,534,247.09 6,497,000.000 6,715,326.98 300,000.000 308,808.00 6,650,000.000 6,876,036.50 5,000,000.000 5,226,367.19 650,000.000 677,046.50 19,097,000.000 19,803,585.17 19,097,000.000 19,803,585.17 49,504,675.010 50,337,832.26 1 Report ID: GL8251 Base Currency: USD Alternate Base Currency: Exchange Rate: Status: FINAL Market Value Base 232,467.79 999,008.33 6,871,741.11 6,769,992.50 4,981,130.00 207,675.01 5,000,000.00 5,472,232.35 30,534,247.09 30,534,247.09 6,609,451.45 300,000.00 6,705,680.33 5,212,500.00 654,771.00 19,482,402.78 19,482,402.78 50,016,649.87 % of Total 0.46% 2.00% 13.74% 13.54% 9.96% 0.42% 10.00% 10.94% 61.05% 61.05% 13.21% 0.60% 13.41% 10.42% 1.31% 38.95% 38.95% 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 0.00 -105,875.53 -8,808.00 -170,356.17 -13,867.19 -22,275.50 -321,182.39 -321,182.39 -321,182.39 Workbench Asset Summary by Asset Type with Sectors LONG TERM OPER-PIMCO -OCSF07522202 ------_11/30/2003 __ _ Description CASH & CASH EQUIVALENTS U.S. DOLLAR PENDING TRADES INTEREST COMMERCIAL PAPER -DISCOUNT FEDERAL HOME LOAN MORTGAGE -LESS THAN 1 FNMA ISSUES -LESS THAN 1 YR MUTUAL FUNDS REPURCHASE AGREEMENTS 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 FHLMC POOLS FNMA POOLS GNMA MULTI FAMILY POOLS GNMA SINGLE FAMILY POOLS INDUSTRIAL INFLATION INDEXED SECURITIES PVT PLACEMENTS-MORE THN lYR U.S. AGENCIES U.S. GOVERNMENTS UTILITY -ELECTRIC UTILITY -TELEPHONE U.S. DOLLAR FIXED INCOME SECURITIES Cost Sha.res Par Base -2,759,368.28 3 ,203,851.80 2,800,000.000 2,790,420.11 31,300,000.000 31,209,102.61 7,200,000.000 7 ,172,745.24 3,214,872.140 3,214,872.14 4,800,000.000 4,800,000.00 37,900,000.000 37,706,336.65 87,214,872.140 87,337,960.27 87,214,872.140 87,337,960.27 1,600,000.000 1,600,000.00 31,835,000.000 32,969,231.00 2,425,788.580 2,425,788.58 1,125,040.990 1,126,239.59 158,617.560 158,691.63 45,988,263.810 47,092,727.11 3,432,766.520 3,415,592.00 10,003,606.180 10,168,463.72 8,000,000.000 8,248,380.00 34,480,870.000 34,497,881.71 752,000.000 826,199.84 41,151,380.890 42,228,119.55 92,597,276.280 100,770,646.50 4,750,000.000 4,694,370.00 3,000,000.000 3,530,490.00 281,300,610.810 293,752,821.23 281,300,610.810 293,752,821.23 -· --- 1 Report ID: GL8251 Base Currency: USD Alternate Base Currency: Exchange Rate: Status; FINAL Market Value Base -2,759,368.28 3,203,851.80 2,790,420.11 31,209,102.61 7,172,745.24 3,214,872.14 4,800,000.00 37,706,336.65 87,337,960.27 87,337,960.27 241,168.00 33,470,841.10 2,593,289.28 1,116,929.44 163,247.78 47,014,098.40 3,467,633.26 10,489,526.48 8,238,240.00 38,051 ,306.05 826,199.84 43,842,615.67 99,201,512.83 5,009,042.50 3,437,340.00 297,162,990.63 297,162,990.63 % of Total -0.72% 0.83% 0 .73% 8.12% 1.87% 0.84% 1.25% 9.81% 22.71% 22.71% 0.06% 8.71% 0.67% 0.29% 0.04% 12.23% 0.90% 2.73% 2.14% 9.90% 0.21% 11.40% 25.80% 1.30% 0.89% 77.29% 77.29% 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 -1,358,832.00 501,610.10 167,500.70 -9,310.15 4,556.15 -78,628.71 52,041.26 321,062.76 -10,140.00 3,553,424.34 0.00 1,614,496.12 -1,569,133.67 314,672.50 -93,150.00 3,410,169.40 3,410,169.40 Workbench LONG TERM OPER-PlMCO -OCSF07522202 Description TOTAL ASSETS -BASE: Asset Summary by Asset Type with Sectors 11/30/2003 Cost Sha.res Par Base Report ID: GL8251 Base Currency: USD Alternate Base Currency: Exchange Rate: Status: FntAL Market Value Base % of Total Net Unrealized Gain/Loss Base 368,515,482.950 381,090,781.50 384,500,950.90 100.00% 3,410,169.40 2 Workbench YLDANAL OCSF07511102 DISTRICT: LIQUID OPERATING PAR VALUE SECURITY ID SECURITY DESCRIPTION CASH & CASH EQUIVALENTS 1,000,000.00 DU PONT DE NEMOUR DISC 26354BZH8 12/17/2003 1,400,000.00 FEDERAL HOME LN BK CONS DISC 313384SS9 600,000 .00 FEDERAL HOME LN BK CONS DISC 3l3384SWO MAT 02/09/2004 2,000,000 .00 FEDERAL HOME LN BK CONS DISC 313384TN9 MAT 02/25/2004 900,000.00 FEDERAL HOME LN BKS CINS DISC 313384UK3 MAT 03/17/2004 2,000,000.00 FEDERAL HOME LN BK CONS DISC 313384XA2 MAT 05/19/2004 3,000,000.00 FEDERAL HOME LN MTG CORP DISC 313396TP8 MAT 02/26/2004 3,800,000.00 FEDERAL HOME LN MTG CORP DISC 313396UZ4 MAT 03/31/2004 3,000,000.00 FEDERAL NATL MTG ASSN DISC NT 313588TF2 2,000,000,00 FEDERAL NATL MTG ASSN DISCOUNT 313588XA8 MAT 05/19/2004 1,200,000.00 US TREASURY BILL 912795PK1 DUE 02/12/2004 DD 08/14/2003 4,300,000.00 US TREASURY BILL 912795QA2 DUE 05/27/2004 DD 11/28/2003 5 1000,000,00 FIRST BOSTON CORP REPO 99413Fl74 01,0201 12/01/2003 DD 11/28/03 YTM AT BOOlK , 000 , 000 • 000 • 000 • 000 • 000 • 000 . 000 • 000 • 000 .ooo .ooo .ooo YIELD ANALYSIS 2003/11/30 CURRENT MOODY MARKET YIELD S-P PRICE .ooo .ooo .ooo .000 ,000 .ooo .ooo .ooo .ooo .ooo .ooo .ooo 1,020 P-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+ P-1 A-1+ P-1 A-1+ 99.901 99.688 99.614 99.732 99.462 99.431 99.731 99.422 99,754 99,426 99,516 99.489 100.000 PAGE RUN DATE RUN TIME TOTAL COST/ MARKET VALUE 999,008,33 999,008.33 1,395,630.83 1,395,630.83 591,681.67 597,681.67 1,994,641.11 1,994,641.11 895,162.50 895,162.50 1,988,625.00 1,988,625.00 2,991,937.50 2,991,937.50 3,778,055.00 3,778,055,00 2,992,606.11 2,992,606.11 1,988,523.89 1,988,523.89 1,194,191.67 1,194,191.67 4,278,040.68 4,278,040.68 5,ooo,ooo.oo 5,ooo,ooo.oo 1 12/04/03 10.38.34 I TYPE I TOTAL 3.29 2.01 4.60 2.80 1.97 1.20 6.58 4.01 2.95 1.80 6.56 3.99 9.87 6.01 12.46 7 .59 9 .87 6 .01 6.56 3.99 3.94 2.40 14.11 8.59 16.50 10.04 YLDANAL YIELD ANALYSIS PAGE 2 OCSF07511102 2003/11/30 RUN DATE 12/04/03 DISTRICT: LIQUID OPERATING RUN TIME 10.38.34 ---· ---- PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL --------------------·------------------------------------~--------·----·--------·-·----- 207,675,01 DREYFUS TREASURY CASH MGMT .000 .812 AAA 100.000 207,675.01 .68 996085247 AAA 207,675.01 .42 ---.---·-----------------------------------TOTAL CASH & CASH EQUIVALENTS .ooo .053 30,301,779.30 100.00 30,301,779.30 60.86 FIXED INCOME SECURITIES 100,000.00 ASSOCIATES CORP NA MTN SR00043 .000 7.617 AAl 103.984 104,199.00 .53 045906BU7 7.920% 07/13/2004 DD 07/13/94 AA-103,984.00 .21 1,000,000.00 ASSOCIATES CORP NORTH AMER .000 5.701 AAl 101. 734 1,041,290.00 5 .22 046003KA6 5.800% 04/20/2004 DD 04/20/99 AA-1,017,340.00 2 ,04 500,000.00 BANK OF AMERICA CORP SR GBL NT .000 6.442 AA2 102.843 518,385.00 2,63 066050CW3 6.625% 06/15/2004 DD 06/15/99 A+ 514,215.00 1.03 650,000.00 BELL ATLANTIC-NEW JERSEY INC .ooo 5,832 AA3 100.734 677,046.50 3.36 077858AA6 5.875% 02/01/2004 DD 02/01/94 A+ 654,771.00 1.32 300,000.00 COLGATE PALMOLIVE MTN TR 00058 .ooo 5,270 AA3 100.000 308,808.00 1.53 19416QCK4 5,270% 12/01/2003 DD 11/24/98 AA-300,000.00 .60 1,350,000.00 FEDERAL FARM CR BKS CONS SYSTE .000 5 .364 AAA 100.670 1,399,963.50 6.97 31331H6G7 6.40% 01/23/2004 DD 01/01/1999 AAA 1,359,040.01 2.73 1,100,000.00 FEDERAL HOME LN MTG CORP DEB .ooo 3,713 AAA 101.003 1,125,905.00 5,70 3134A4PH1 3,750% 04/15/2004 DD 04/15/02 AAA 1,111,031.46 2.23 4,200,000.00 FEDERAL NATL MTG ASSN DEBS .ooo 5.082 AAA 100.848 4,350,168.00 21.74 31359MEM1 5,125% 02/13/2004 DD 02/08/99 AAA 4,235,608.86 8.51 1,000,000.00 GENERAL ELEC CAP MTN tTR 00545 .ooo 1.239 AAA 100.078 1,001,009,00 5 .13 36962GYS7 VAR RT 05/20/2004 DD 05/20/02 AAA 1,000,100.00 2 .01 1,000,000.00 LEHMAN BROS HLDGS INC .ooo 6.509 Al 101.781 1,045,590.00 5 .22 524908BZ2 6.625% 04/01/2004 DD 03/26/99 A 1,011,010.00 2 .04 250,000.00 NCNB TEX NATL BK DALLAS TEX NT .ooo 9.143 AA2 103.906 260,870.00 1.33 628857DJO 9.500% 06/01/2004 DD 06/01/89 A+ 259,765.00 .52 YLDANAL OCSF07511102 DISTRICT: LIQUID OPERATING YIELD ANALYSIS 2003/11/30 PAGE RUN DATE RUN TIME 3 12/04/03 10.38.34 ========================================================--== -====== =---==========--==========----===================== PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL -----------------------------------------------------------------------------·-·---------------- 627,000.00 NATIONSBANK CORP SR NTS .ooo 5.954 AA2 102.875 646,650.18 3.31 638585BJ7 6,1251 07/15/2004 DD 07/23/98 A+ 645,026.25 1.30 520,000.00 NORWEST FINL INC NTS .ooo 7.065 AAl 101.906 531,538.80 2.71 669383DG3 7.2001 04/01/2004 DD 04/07/97 AA-529,911.20 1.06 500,ooo.oo PAINE WEBBER GROUP INC NTS .ooo 6.450 AA2 100.000 519,405.00 2,56 695629CE3 6.4501 12/01/2003 DD 12/01/98 AA+ 500,000.00 1.00 1,000,000.00 US BANCORP MTN tTR 00119 .ooo 5.879 AA3 102.062 1,046,310.00 5.23 91159HEY2 6,0001 05/15/2004 DD 05/10/99 A+ 1,020,620.00 2.05 5,ooo,ooo.oo US TREASURY NOTES .ooo 5.635 AAA 104.250 5,226,367.19 26.75 9128275S7 05.8751 11/15/2004 DD 11/15/99 AAA 5,212,soo.oo 10.47 ----------------------------------- TOTAL FIXED INCOME SECURITIES .000 5,225 19,803,585.17 100.00 19,482,402.78 39.12 -------·-----------------------------·---TOTAL .000 2.139 50,105,364.47 100.00 49,784,182.08 100.00 ========-=·-.=-·--=== YLDANAL YIELD ANALYSIS PAGE 4 OCSF07522202 2003/11/30 RUN DATE I 12/04/03 DISTRICT: LONG-TERM OPERATING RUN TIME : 10,38,34 ============================================ PAR VALUE YTlt AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL -------~--------------------------------------------------------------------------~------------ CASH & CASH EQUIVALENTS 20,800,000.00 FEDERAL HOME LN MTG CORP DISC .000 .ooo P-1 99.731 20,744,004.66 23.87 313396RV7 MAT 01/15/2004 A-1+ 20,744,004.66 5.40 1,200,000.00 FEDERAL HOME LN MTG CORP DISC .ooo .ooo P-1 99.727 1,196,718,67 1. 37 313396SKO MAT 01/29/2004 A-1+ 1,196,718.67 .31 4,700,000.00 FEDERAL HOME LN MTG CORP DISC .ooo .ooo P-1 99.661 4,684,085.28 5.39 313396SP9 MAT 02/02/2004 A-1+ 4,684,085.28 1.22 2,500,000.00 FEDERAL HOME LN MTG CORP DISC .000 .ooo P-1 99,724 2,493,100.00 2,86 313396SZ7 MAT 02/12/2004 A-1+ 2,493,100.00 .65 2,100,000.00 FEDERAL HOME LN MTG CORP DISC .ooo .ooo P-1 99.581 2,091,194.00 2.40 313396UQ4 MAT 03/22/2004 A-1+ 2,091,194.00 .54 200,000.00 FEDERAL NATL MTG ASSN DISC .000 .ooo P-1 99.637 199,274.00 .22 313588QA6 A-1+ 199,274.00 .05 800,ooo.oo FEDERAL NATL MTG ASSN DISCOUNT .ooo .ooo P-1 99.663 797,301.63 .91 3135BBQN8 MAT 12/15/2003 A-1+ 797,301.63 .21 2,400,000.00 FEDERAL NATL MTG ASSN DISC NT .000 .ooo P-1 99.715 2,393,155.61 2,75 313588TF2 A-1+ 2,393,155,61 .62 3,800,ooo.oo FEDERAL NATL MTG ASSN DISCOUNT .ooo .ooo P-1 99.553 3,783,014.00 4.35 313588TGO MAT 02/19/2004 A-1+ 3,783,014.00 .99 2,eoo,000.00 GENERAL ELEC CAP DISC .ooo .ooo P-1 99.658 2,790,420.11 3.21 36959JZA4 12/10/2003 2,790,420.11 ,13 4,500,000.00 US TREASURY BILL .000 .ooo P-1 99.516 4,478,218.75 5.15 912795PK1 DUE 02/12/2004 DD 08/14/2003 A-1+ 4,478,218.75 1.17 11,000,000.00 UNITED STATES TREASURY BILL .000 .ooo P-1 99.487 16,912,790.02 19.46 912795PV7 DUE 04/22/2004 DD 10/23/03 A-1+ 16,912,790.02 4.40 12,000,000.00 US TREASURY BILL .ooo .ooo P-1 99.484 11,938,120.00 13.73 912795PW5 0.000% 04/29/2004 DD 10/30/03 A-1+ 11,938,120.00 3.11 4,400,000.00 US TREASURY BILL .ooo .ooo P-1 99.482 4,377,207.88 5.03 912795PX3 0.000% 05/06/2004 DD 11/06/03 A-1+ 4,377,207.88 1.14 YLDANAL YIELD ANALYSIS PAGE 5 OCSF07522202 2003/11/30 RUN DATE 12/04/03 DISTRICT: LONG-TERM OPERATING RUN TIME I 10.38.34 ---------------------===-----------------------==----------------==-================================================--======== PAR VALUE YTJI! AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL ---------------------------------------------------------------------------------------------- 4,000,000.00 FIRST BOSTON CORP REPO .ooo 1.020 100.000 4,800,000.00 5 .52 99413Fl74 01,0201 12/01/2003 DD 11/28/03 4,000,ooo.oo 1.25 3,214,872,14 DREYFUS TREASURY CASH MGMT .ooo .812 AAA 100,000 3,214,872.14 3.69 996085247 AAA 3,214,872,14 .84 ------------------------------------------ TOTAL CASH & CASH EQUIVALENTS .ooo .017 86,893,476.75 100.00 86,893,476.75 22.63 FIXED INCOME SECURITIES 752,000.00 AIG SUNAHERICA GLOBAL REGS .ooo 5 .325 109.867 826,199.84 .27 U00907AAO 5,8501 08/01/2008 DD 08/08/01 826,199.84 ,22 2,500,000.00 COMMIT TO PUR FNMA SF MTG .ooo 5 ,839 AAA 102,750 2,552,012.50 ,86 OlF0606C4 6,000% 12/01/2033 DD 12/01/03 AAA 2,568,750,00 .67 900,000.00 BEAR STEARNS MTN t TR 00459 .ooo 1,470 Al 100.000 899,406.00 .30 073928VC4 VAR RT 12/01/2003 DD 08/17/01 A 900,000.00 .23 1,soo,000.00 CIT GROUP INC NEW SR NT .ooo 5,161 A2 106.578 1,527,135.00 .53 125581ADO 5.500% 11/30/2007 DD 12/02/02 A 1,598,670.00 .42 5,000,000.00 CITIGROUP INC GLOBAL SUB NT .ooo 5,356 AA2 105,015 5,333,600,00 1.76 172967BP5 5.625% 08/27/2012 DD 08/26/02 A+ 5,250,750.00 1.37 79,303.08 FHLHC GROUP IG4-0353 .ooo 7.325 AAA 102,383 81,310.45 .02 3128DBMA2 7.5001 10/01/2004 DD 03/01/99 AAA 81,192.67 ,02 7,500,000.00 FEDERAL HOME LN BK CONS BOS .ooo 6,690 AAA 106,504 7,997,625.00 2.68 3133MAUN7 7,125% 02/15/2005 DD 02/08/00 AAA 7,987,800.00 2.08 79,314,48 FBLMC GROUP 178-6064 .ooo 3.708 AAA 103,455 77,381.18 .02 31348SWZ3 6.3841 01/01/2028 DD 12/01/97 AAA 82,055.11 ,02 11,350,000.00 FEDERAL NATL MTG ASSN DEBS .ooo 4.928 AAA 106,541 11,521,271.50 4.06 31359MJX2 5,250% 06/15/2006 DD 06/22/01 AAA 12,092,459.12 3.15 859,012.21 FNMA POOL 10254510 .ooo 4,923 AAA 101.570 884,782,58 ,29 31371KVB4 5.0001 11/01/2017 DD 10/01/02 AAA 872,501.36 .23 YLDANAL YIELD ANALYSIS PAGE 6 OCSF07522202 2003/11/30 RUN DATE 12/04/03 DISTRICT: LONG-TERM OPERATING RUN TIME 10.38.34 = PAR VALUE YTIH AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION B001< YIELD S-P PRICE MARKET VALUE % TOTAL -------------------------------------------------------------------------------------~---·--- 181,143.73 FNMA POOL 10254631 .ooo 4.929 AAA 101.445 186,578.05 .06 31371KY47 5.000% 02/01/2018 DD 01/01/03 AAA 183,761.82 .05 163,047.62 FNMA POOL 10254760 .ooo 4.929 AAA 101.445 167,939.04 .05 31371K5V9 5.000% 06/01/2018 DD 05/01/03 AAA 165,404.16 .04 70,799.10 FNMA POOL 10254866 .ooo 4.929 AAA 101.445 72,923.08 .02 31371LCB3 5.000% 09/01/2018 DD 08/01/03 AAA 71,822.37 .02 376,577.44 FNMA POOL 10254953 .000 4.929 AAA 101.445 381,402.34 .12 31371LE21 5.000% 11/01/2018 DD 10/01/03 AAA 382,020.15 .10 999,900.00 FNMA POOL 10254987 .ooo 4.932 AAA 101.370 1,012,711.21 .34 31371LF46 5.000% 12/01/2018 DD 11/01/03 AAA 1,013,599.70 .26 219,336.47 FNMA POOL 10323980 .ooo 5.725 AAA 104.797 229,000.99 .07 31374T2H0 6.000% 04/01/2014 DD 09/01/99 AAA 229,857.78 .06 33,182.54 FNMA POOL 10357328 .ooo 4.931 AAA 101.392 34,178.01 .01 31376J4H8 5.000% 01/01/2018 DD 01/01/03 AAA 33,644.59 .01 1,617,925.65 FNMA POOL 10357430 .ooo 4.929 AAA 101.445 1,636,127.32 .55 31376KA71 5.000% 09/01/2018 DD 09/01/03 AAA 1,641,309.69 .43 73,773.50 FNMA POOL 10456482 .000 5.725 AAA 104,797 77,024.14 .02 31381CCT2 6.000% 02/01/2014 DD 02/01/99 AAA 77,312.33 .02 177,993.22 FNMA POOL 10509649 .ooo 5.725 AAA 104.797 185,836.05 .06 31383QEW0 6.000% 09/01/2014 DD 09/01/99 AAA 186,531.34 .05 174,177.12 FNMA POOL 10535451 .ooo 5.725 AAA 104.797 181,851.80 .06 31384VZQ8 6.000% 06/01/2015 DD 07/01/00 AAA 182,532.19 .05 3,766,954.11 FNMA POOL 10535672 .ooo 5. 725 AAA 104.797 3,932,935.53 1.32 31384WCH1 6.000% 01/01/2016 DD 12/01/00 AAA 3,947,650.38 1.03 1,252,717.66 FNMA POOL 10545296 .ooo 5.728 AAA 104.747 1,307,915.53 .44 31385HXZO 6.000% 11/01/2016 DD 10/01/01 AAA 1,312,182.66 .34 105, 717,20 FNMA POOL 10545580 .000 5. 730 AAA 104.709 110,375.36 .03 31385JCR7 6.000% 03/01/2017 DD 03/01/02 AAA 110,695.81 .03 205,631.11 FNMA POOL 10545998 ,000 5.843 AAA 102.691 213,856.35 .07 31385JRT7 6.000% 11/01/2032 DD 10/01/02 AAA 211,164.79 .05 YLDANAL YIELD ANALYSIS PAGE I 7 OCSF07522202 2003/11/30 RUN DATE : 12/04/03 DISTRICT: LONG-TERM OPERATING RUN TIME 10.38.34 ---------------------------------------------------------------------------------------------===-=-=--===---==-==---==------- PAR VALUE YTfl'I AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL ---------------------~-------~---------------------------------------------------------- 185,719.05 FNMA POOL 10555101 .000 5,723 AAA 104,847 193,902.28 .06 313B5WU23 6.000% 10/01/2017 DD 11/01/02 AAA 194,720.61 .05 830,446.27 FNMA POOL 10555285 .000 5.832 AAA 102,887 863,664.13 .28 31385W2S7 6.000% 03/01/2033 DD 02/01/03 AAA 854,418.93 .22 391,033.62 FNMA POOL 10555363 .ooo 4.929 AAA 101.445 402,764.63 .13 31385W5Yl 5.000% 04/01/2018 DD 03/01/03 AAA 396,685.27 .10 40,046.53 FNMA POOL 10555453 .ooo 4.929 AAA 101.445 40,559.63 .01 31385XBW6 5,000% 05/01/2018 DD 04/01/03 AAA 40,625.33 .01 802,440.91 FNMA POOL 10555528 .ooo 5.832 AAA 102.887 834,538.55 .27 31385XD95 6.000% 04/01/2033 DD 05/01/03 AAA 825,605.13 .21 325,949,32 FNMA POOL 10555545 .ooo 4,929 AAA 101.445 335,727.80 .11 31385XES2 5,000% 06/01/2018 DD 05/01/03 AAA 330,660.30 .09 1,127,611.96 FNMA POOL 10555621 .ooo 4,932 AAA 101.370 1,140,297.59 .38 31385XG6B 5.000% 07/01/2018 DD 06/01/03 AAA 1,143,061.45 .30 ,01 FNMA POOL 10555640 .ooo 5,832 AAA 102.887 .01 .oo 31385XHR1 6.000% 07/01/2033 DD 06/01/03 AAA .01 .oo 65,488.23 FNMA POOL 10576386 .ooo 5,753 AAA 104.301 68,373.80 .02 31386XJ72 6.000% 05/01/2016 DD 05/01/01 AAA 68,304.66 .02 180,265.76 FNMA POOL 10576739 .ooo 5,730 AAA 104,709 188,208.72 .06 31386XVB6 6.000% 04/01/2016 DD 04/01/01 AAA 188,755.14 .05 237,644.00 FNMA POOL 10580888 .ooo 5.129 AAA 104.734 248,115.18 .00 31387DJ91 6.000% 05/01/2016 DD 05/01/01 AAA 248,894.97 .06 192,904,93 FNMA POOL 10594002 .ooo 5. 739 AAA 104.547 201,404.80 .06 31387TJK8 6.000% 07/01/2016 DD 07/01/01 AAA 201,676.09 .05 256,057,20 FNMA POOL 10597376 .ooo 5,730 AAA 104,709 267,339.72 .09 31387XT96 6.000% 09/01/2016 DD 08/01/01 AAA 268,115.88 .07 182,017 ,85 FNMA POOL 10605259 .ooo 5.730 AAA 104,709 190,038.01 .06 31388HMG1 6.000% 09/01/2016 DD 09/01/01 AAA 190,589.74 .05 108,368.85 FNMA POOL 10608366 .ooo 5.730 AAA 104,709 113,143.85 .03 313BBLZ78 6.000% 10/01/2016 DD 09/01/01 AAA 113,472.34 .03 YLDANAL YIELD ANALYSIS PAGE : 8 OCSF07522202 2003/11/30 RUN DATE 12/04/03 DISTRICT: LONG-TERM OPERATING RUN TIME 10.38.34 -------·---=-===---===-----------. ------===-=--· ----=-==-= -----===-=-=========----------------=---------=--==========-======== PAR VALUE YTHI AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOClJK YIELD S-P PRICE MARKET VALUE % TOTAL ---------------------------------------------------------------------------------------------- 171,282.81 FNMA POOL 10616734 . 000 5.722 AAA 104.859 178,829.95 .06 31388WEF9 6.000% 12/01/2016 DD 12/01/01 AAA 179,606.09 .05 209,265.23 FNMA POOL 10630812 .ooo 5.750 AAA 104.341 218,48S.98 .07 Jl389NYH2 6.000% 02/01/2017 DD 02/01/02 AAA 218,349.70 .06 868,744.72 FNMA POOL 10632376 • ODO S.723 AAA 104.847 907,023.80 .JO 31389QQ50 6.000% 07/01/2017 DD 07/01/02 AAA 910,8S1.6S .24 S09,731.17 FNMA POOL 10653116 ,. 000 S.723 AAA 104.847 S32,191.20 .17 31390QSD8 6.000% 07/01/2017 DD 07/01/02 AAA S34,437.18 .14 208,854,17 FNMA POOL 10673280 .ooo 5. 739 AAA 104.547 218,056.80 .07 31391P6R2 6.000% 08/01/2017 DD 11/01/02 AAA 218,JSO.S2 .06 584,844.19 FNMA POOL 10681309 .ooo 4.929 AAA 101.445 602,389.51 .19 31391Y3S4 5.000% 02/01/2018 DD 02/01/03 AAA 593,297.00 .15 73,753.38 FNMA POOL 10681334 .ooo 4.929 AAA 101.445 75,965.98 .02 31391Y4Tl 5.000% 02/01/2018 DD 01/01/03 AAA 74,819.34 .02 355,998.83 FNMA POOL 10684908 .ODO 4.924 AAA 101.545 360,560.07 .12 31400D3Rl 5.000% 06/01/2018 DD 05/01/03 AAA 361,500.12 .09 209,789.66 FNMA POOL 10685200 .ooo 4.929 AAA 101.445 212,477.S9 ,07 31400EGR7 5.000% 03/01/2018 DD 03/01/03 AAA 212,821.77 ,06 37,366,96 FNMA POOL 10685665 .000 4.929 AAA 101.445 38,487.97 ,01 31400EW22 5.000% 02/01/2018 DD 02/01/03 AAA 37,907.03 .01 322,316.29 FNMA POOL 10686318 .ooo 4.929 AAA 101.445 331,985.78 .11 31400FPB7 5.000% 03/01/2018 DD 03/01/03 AAA 326,974. 76 .09 124,553.20 FNMA POOL 10688739 .000 4.929 AAA 101.445 128,289.79 .04 31400JEL9 5.000% 06/01/2018 DD 06/01/03 AAA 126,353.38 .03 138,272.0S FNMA POOL 106898S9 .ooo 4,929 AAA 101.445 140,043.66 .04 3l400KMG8 5.000% 05/01/2018 DD 05/01/03 AAA 140,270.51 .04 762,067.34 FNMA POOL 10693834 .ooo 4.923 AAA 101.570 784,929.36 .26 31400PY74 5.000% 03/01/2018 DD 03/01/03 AAA 774,034.16 .20 279,876.09 FNMA POOL 10695852 .ODO 4,929 AAA 101.445 288,272.37 .09 Jl400SBVO 5.000% 05/01/2018 DD 05/01/03 AAA 283,921.17 .07 YLDANAL YIELD ANALYSIS PAGE 9 OCSF07522202 2003/11/30 RUN DATE 12/04/03 DISTRICT: LONG-TERM OPERATING RUN TIME 10.38.34 == PAR VALUE YT'H AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARI<ET VALUE I TOTAL -------------------------------------------------------------------------------------------- 850,345.21 FNMA POOL 10695889 .ooo 4,929 AAA 101.445 875,855.56 ,29 31400SC23 5,000% 05/01/2018 DD 05/01/03 AAA 862,635.33 .22 27,680.19 FNMA POOL 10697026 .ooo 4,929 AAA 101.445 28,510.61 .oo 31400TLF2 5.000% 05/01/2018 DD 04/01/03 AAA 28,080.25 .01 92,437.07 FNMA POOL 10698939 .ooo 5.715 AAA 104.984 96,510.08 ,03 31400VPY2 6.000% 09/01/2017 DD 03/01/03 AAA 97,044.48 .03 284,613.18 FNMA POOL 10702210 .ooo 4.932 AAA 101. 370 293,151.58 .09 31401ADP9 5.000% 05/01/2018 DD 05/01/03 AAA 288,512.69 .08 151,690.63 FNMA POOL 10702328 .ooo 4,929 AAA 101. 445 153,634.17 .05 31401AHD2 5.000% 05/01/2018 DD 04/01/03 AAA 153,883.03 ,04 83,209.15 FNMA POOL 10703195 .ooo 5.715 AAA 104.984 86,875.56 .02 31401BGC3 6,000% 01/01/2017 DD 04/01/03 AAA 87,356.61 .02 305,196.38 FNMA POOL 10709148 .ooo 4,929 AAA 101.445 314,352.27 .10 31401HZM7 5,000% 06/01/2018 DD 06/01/03 AAA 309,607.41 .08 701,877.24 FNMA POOL 10709360 .000 4,929 AAA 101,445 710,870.04 .23 31401JB56 5.000% 07/01/2018 DD 06/01/03 AAA 712,021.54 .19 146,432.69 FNMA POOL 10709826 .ooo 4,929 AAA 101.445 148,308.86 .04 31401JSP4 5.000% 06/01/2018 DD 06/01/03 AAA 148,549.10 .04 268,422.86 FNMA POOL 10709917 .ooo 4,929 AAA 101.445 271,862 .03 .09 31401JVJ4 5.000% 06/01/2018 DD 06/01/03 AAA 272,302.40 .07 27,274.00 FNMA POOL 10709963 .000 4,932 AAA 101.370 27,623.45 .oo 31401JWYO 5.000% 06/01/2018 DD 06/01/03 AAA 27,647.68 .01 818,490.37 FNMA POOL 10710235 .ooo 4,929 AAA 101.445 843,045.09 .27 31401KBC8 5,000% 06/01/2018 DD 06/01/03 AAA 830,320.09 .22 26,493.87 FNMA POOL 10713344 .000 4.929 AAA 101.445 27,288.68 .oo 31401NP52 5.000% 06/01/2018 DD 06/01/03 AAA 26,876.79 .01 342,541.64 FNMA POOL 10713365 .ooo 4.929 AAA 101. 445 346,930.45 .11 31401NQS1 5,000% 07/01/2018 DD 07/01/03 AAA 347,492.43 .09 999,999.37 FNMA POOL 10720319 .ooo 4.929 AAA 101.445 1,012,811.86 .34 31401WG45 5.000% 07/01/2018 DD 07/01/03 AAA 1,014,452.46 .26 YLDANAL YIELD ANALYSIS PAGE 10 OCSF07522202 2003/11/30 RUN DATE 12/04/03 DISTRICT: LONG-TERM OPERATING RUN TIME 10.38.34 ==·----;:::;:::=-=..=;:;.;::::;;=r=-=---===·=-====:;;====-==--:':=:::::--;;:::;::=·========='=:;::;..::::===:==·===:==.==-=--' PAR VALUE YT'M AT CURRENT MOODY MARI<ET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARI<ET VALUE I TOTAL ----------------------------------------------------------------------------- 2,487,120.37 FNMA POOL 10720369 .ooo 4.932 AAA 101.370 2,561,733.98 .84 31401WJNO 5,000% 06/01/2018 DD 06/01/03 AAA 2,521,196.58 .66 319,195.88 FNMA POOL 10721629 .000 4.923 AAA 101.570 328,771.77 .10 31401XVW4 5.000% 07/01/2018 DD 06/01/03 AAA 324,208.24 .08 254,163.98 FNMA POOL 10723487 .000 4,929 AAA 101. 445 257,023.32 .08 31402AXQ4 5.000% 06/01/2018 DD 06/01/03 AAA 257,837.44 .07 439,182,56 FNMA POOL 10729601 .ooo 4,929 AAA 101. 445 444,809.59 .14 31402HRW3 5.000% 07/01/2018 DD 07/01/03 AAA 445,530,11 ,12 36,719.15 FNMA POOL 10732873 .000 4,918 AAA 101.670 37,189.61 .01 31402MFNS 5.000% 11/01/2018 DD 10/01/03 AAA 37,332.47 .01 754,718.01 FNMA POOL 10737130 .ooo 4,929 AAA 101. 445 764,387.83 ,25 31402S4P9 5.000% 10/01/2018 DD 10/01/03 AAA 765,626,02 .20 595,259.77 FNMA POOL 10738211 .ooo 4,932 AAA 101. 370 602,886.54 .20 31402UDQ2 5.000% 10/01/2018 DD 10/01/03 AAA 603,415.47 .16 228,081.28 FNMA POOL 10738487 .000 4.929 AAA 101.445 231,003.57 .07 31402UNC2 5,0001 10/01/2018 DD 10/01/03 AAA 231,377.76 ,06 790,309.70 FNMA POOL 10740471 .000 4,932 AAA 101.370 800,435,54 .26 31402WT40 5,0001 10/01/2018 DD 10/01/03 AAA 801,137.79 .21 834,454.00 FNMA POOL 10740748 .000 4.929 AAA 101.445 845,145,44 .28 31402WSH7 5,000% 10/01/2018 DD 11/01/03 AAA 846,514.45 ,22 1,189,028.27 FNMA POOL 10744008 .000 4,929 AAA 101.445 1,204,262,69 .40 31403BR54 5,0001 07/01/2018 DD 09/01/03 AAA 1,206,213.41 .31 176,746.71 FNMA POOL 10744316 .ooo 4,932 AAA 101.370 179,011.28 .06 31403B3Z4 5,0001 09/01/2018 DD 09/01/03 AAA 179,168.33 .OS 364,580.00 FNMA POOL 10747914 .ooo 4.929 AAA 101.445 369,251.18 .12 31403F3XO 5,000% 11/01/2018 DD 11/01/03 AAA 369,849.31 .10 245,282.02 FNMA POOL 10748400 .000 4,932 AAA 101,370 248,424.70 .08 31403GNR9 5,000% 08/01/2018 DD 09/01/03 AAA 248,642.65 .06 1,042,469.00 FNMA POOL 10748899 .ooo 4,932 AAA 101.370 1,055,825.63 .35 31403G7LO 5.000% 12/01/2018 DD 11/01/03 AAA 1,056,756.03 ,28 YLDANAL YIELD ANALYSIS PAGE 11 OCS F07522202 2003/11/30 RUN DATE 12/04/03 DISTRICT: LONG-TERM OPERATING RUN TIME 10.38.34 ---==-----------==========-====-========================----=-====-==================== PAR VALUE YT'M AT CURRENT MOODY MARXET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARRET VALUE I TOTAL -----------------------------------------------~------------------------------------------- 2,575,784.00 FNMA POOL #0750377 .ooo 4.932 AAA 101.370 2,608,786.23 .87 31403JUA2 5.0001 11/01/2018 DD 11/01/03 AAA 2,611,085.09 .68 2,146,534.00 FNMA POOL 10750380 .ooo 4.932 AAA 101.370 2,174,036.48 .73 31403JUD6 5.000% 11/01/2018 DD 11/01/03 AAA 2,175,952.23 .57 194,967.00 FNMA POOL 10750445 .ooo 4.932 AAA 101.370 197,465.01 .06 31403JWE2 5.0001 11/01/2018 DD 11/01/03 AAA 197,639.02 .OS 917,585.00 FNMA POOL 10751960 .ooo 4.932 AAA 101.370 929,341.56 .31 31403LHH1 5.000% 12/01/2018 DD 11/01/03 AAA 930,156.90 ,24 999,900.00 FNMA POOL 10753425 .000 4.929 AAA 101.445 1,011,461.34 .34 31403NA23 5.0001 11/01/2018 DD 11/01/03 AAA 1,014,351.65 .26 663,384,00 FNMA POOL 10755165 .ooo 4.929 AAA 101.445 671,883.60 .22 31403Q6A3 5.000% 12/01/2018 DD 11/01/03 AAA 672,971.96 .18 999,900.00 FNMA POOL 10756372 .ooo 4,929 AAA 101.445 1,011,461.34 .34 31403SJR8 5,0001 11/01/2018 DO 11/01/03 AAA 1,014,351.65 .26 45,596.00 FNMA POOL 10765165 ,000 4,937 AAA 101.281 46,180.20 .01 31404DCA4 5.000% 11/01/2018 DD 11/01/03 AAA 46,180.20 .01 384,843.74 GNHA POOL 10596612 .ooo 6. 172 AAA 105,316 403,905.53 .13 36200BYH4 6.500% 09/15/2032 DD 09/01/02 AAA 405,303.61 .11 1,295,429,22 GNHA POOL 10569358 ,000 6.189 AAA 105.031 1,325,790.84 ,45 36200QQK3 6.500% 04/15/2032 DD 04/01/02 AAA 1,360,603.64 ,35 56,586,26 GNHA POOL 10569685 ,000 6,170 AAA 105,348 59,389.04 .02 36200Q2S2 6.500% 02/15/2032 DD 02/01/02 AAA 59,612.30 ,02 94,336,15 GNHA POOL 10570019 .000 6,172 AAA 105.316 99,008.74 .03 36200RG48 6.500% 07/15/2032 DD 07/01/02 AAA 99,351.45 ,03 601,564.03 GNHA POOL 10574323 .000 6. 170 AAA 105.348 631,360.25 .21 36200WAY7 6.500% 12/15/2031 DD 12/01/01 AAA 633,733.63 .17 60,775,18 GNHA POOL 10575364 ,000 6 ,170 AAA 105.348 63,785.45 .02 36200XFD6 6.500% 11/15/2031 DD 11/01/01 AAA 64,025.23 .02 23,172,59 GNMA POOL #0587117 .ooo 6.170 AAA 105.348 24,320.36 .00 36201MG22 6.500% 06/15/2032 DD 06/01/02 AAA 24,411.78 .01 YLDANAL YIELD ANALYSIS PAGE 12 OCSF07522202 2003/11/30 RUN DATE 12/04/03 DISTRICT: LONG-TERM OPERATING RUN TIME 10.38.34 -----------. -~-----------------====-=------~-~==~======::::----=·-'=::.--==--:.==-=·-·= 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 -------------------------------------------------------------------------------------- 68,561.41 GNMA POOL 10587439 .ooo 6,172 AAA 105,316 71,957.34 .02 36201MS45 6,500% 11/15/2032 DD 12/01/02 AAA 72,206.42 .02 15,463.38 GNMA POOL 10421389 .ooo 6,150 AAA 105.691 16,229.31 .00 36206UC23 6.500% 04/15/2026 DD 04/01/96 AAA 16,343.46 .oo 25,013.02 GNMA POOL 10449851 .000 6,184 AAA 105.105 26,251.95 .oo 36208FWL0 6.500% 01/15/2028 DD 01/01/98 AAA 26,289.94 .01 74,805.81 GNMA POOL 10466845 .000 6.157 AAA 105.566 78,511.03 .02 36209BTA6 6.500% 06/15/2028 DD 06/01/98 AAA 78,969.81 .02 261,418.89 GNMA POOL 10468052 .ooo 6,157 AAA 105.566 274,367.29 .09 36209C5M4 6.500% 07/15/2028 DD 07/01/98 AAA 275,970.54 .07 224,632.54 GNMA POOL 10476041 .ooo 6,157 AAA 105.566 235,407.88 .07 36209MZE7 6.500% 06/15/2028 DD 06/01/98 AAA 237,136.51 .06 179,185.86 GNMA POOL 10478626 .000 6.163 AAA 105.473 187,781,18 .06 36209QVT9 6.500% 01/15/2029 DD 01/01/99 AAA 188,992.09 .05 214,424.53 GNMA POOL 10480598 .ooo 6.163 AAA 105,473 224,710.22 ,07 36209S3F6 6.500% 10/15/2028 DD 10/01/98 AAA 226,159,26 .06 488,829.75 GNMA POOL 10485527 ,000 6,170 AAA 105,348 513,042.10 .17 36209YLG1 6.500% 06/15/2031 DD 06/01/01 AAA 514,970.70 .13 539,528.92 GNMA POOL 10485610 .ooo 6,170 AAA 105.348 566,252,46 .19 36209YN38 6.500% 07/15/2031 DD 07/01/01 AAA 568,381.09 .15 111,928.03 GNMA POOL 10485682 .000 6.170 AAA 105,348 117,471.97 .03 36209YRB6 6.500% 08/15/2031 DD 08/01/01 AAA 117,913.56 .03 113,450.46 GNMA POOL 10485703 .000 6,170 AAA 105.348 119,069.81 .04 36209YRY6 6.500% 08/15/2031 DD 08/01/01 AAA 119,517.40 .03 10,948,76 GNMA POOL 10512235 .ooo 6.166 AAA 105.410 11,491.06 .oo 36211GBC6 6.500% 11/15/2029 DD 11/01/99 AAA 11,541.11 .oo 178,962.07 GNMA POOL 10514326 ,000 6.163 AAA 105.473 187,546.65 .06 36211JLF2 6.500% 07/15/2029 DD 07/01/99 AAA 188,756.06 .05 54,734.82 GNMA POOL 10530053 .000 6.190 AAA 105.004 57,445.91 ,01 36212CZS3 6.500% 04/15/2031 DD 04/01/01 AAA 57,473.94 .01 YLDANAL YIELD ANALYSIS PAGE 13 OCSF07522202 2003/11/30 RUN DATE 12/04/03 DISTRICT: LONG-TERM OPERATING RUN TIME 10.38.34 ---------=------------------------------------------------------------======--=============================--======--==---=== PAR VALUE YT'H AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL -------------------------------------------------------------------------------------- 69,041.37 GNMA POOL f0530290 .ooo 6.170 AAA 105,348 72,353.20 .02 36212DC31 6.500% 03/15/2031 DD 04/01/01 AAA 72,733.47 .02 119,191.36 GNMA POOL t0537885 .ooo 6.170 AAA 105.348 125,095.05 .04 36212MRE1 6.500% 02/15/2031 DD 02/01/01 AAA 125,565.31 .03 13,388.28 GNMA POOL 10547512 .ooo 6 .170 AAA 105.348 14,051.42 .oo 36212YGV9 6.500% 04/15/2031 DD 04/01/01 AAA 14,104.24 .oo 128,502.45 GNMA POOL 10547715 .ooo 6.170 AAA 105,348 134,666.55 .04 36212YN82 6.500% 02/15/2031 DD 02/01/01 AAA 135,374.32 .04 82,681.10 GNMA POOL f0552322 .ooo 6.170 AAA 105.348 86,776.40 .02 36213ESK3 6.500% 01/15/2032 DD 01/01/02 AAA 87,102.60 .02 628,016.99 GNMA POOL f0552466 .ooo 6.189 AAA 105,031 659,123.46 .22 36213EW36 6.500% 03/15/2032 DD 03/01/02 AAA 659,613.19 .17 476,472.18 GNMA POOL 10552659 .ooo 6.172 AAA 105. 316 500,072.43 ,16 36213E5U6 6.500% 07/15/2032 DD 07/01/02 AAA 501,803.39 ,13 464,148.58 GNMA POOL 10561017 .ooo 6.170 AAA 105.348 487,138.44 .16 36213QG29 6.500% 07/15/2031 DD 07/01/01 AAA 488,969.67 .13 284,976.24 GNMA II POOL 10080395 .ooo 3.470 AAA 100.871 282,393.64 .09 36225CNM4 VAR RT 04/20/2030 DD 04/01/00 AAA 287,457.67 .07 2,565,793.89 GNMA II POOL I080408X .ooo 3.472 AAA 100.818 2,539,735.04 .87 36225CN28 6.500% 05/20/2030 DD 05/01/00 AAA 2,586,785.93 .67 5,ooo,ooo.oo GENERAL ELEC CAP MTN fTR 00575 ,000 5.273 AAA 103,359 5,203,500.00 1.73 36962GZY3 5.450% 01/15/2013 DD 12/06/02 AAA 5,167,950.00 1.35 3,000,000.00 GENERAL MTRS ACCEP CORP SR NT ,000 5.792 A3 105,750 3,064,350.00 1.06 370425SD3 6.125% 08/28/2007 DD 08/29/02 BBB 3,172,500.00 .83 3,000,000.00 GOLDMAN SACHS GROUP INC SR NT .ooo 4.049 AA] 101. 875 3,030,030.00 1.02 38141GCS1 4.125% 01/15/2008 DD 01/13/03 A+ 3,056,250.00 .so 1,635,000.00 HOUSEHOLD FIN CORP NT .ooo 5.819 Al 109,546 1,112,820.00 .60 441812JW5 6.375% 10/15/2011 DD 10/23/01 A 1,791,077.10 .47 3,000,000.00 JP MORGAN CHASE & CO SUB NT .ooo 5.494 A2 104,656 3,127,260.00 1.05 46625HAT7 5.750% 01/02/2013 DD 11/25/02 A 3,139,680.00 .82 YLDANAL YIELD ANALYSIS PAGE 14 OCSF07522202 2003/11/30 RUN DATE 12/04/03 DISTRICT: LONG-TERM OPERATING RUN TIME I 10,38.34 ~~---=---=----'----=--==:===:=:==~--=======-==~-=-=====-=~:==:=== .. ====--~-=====~===-=-======~-===--==========~=~ PAR VALUE YTJM AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE I TOTAL ------------------------------------------------------------------------------------ J,200,000.00 MORGAN STANLEY NT ,000 3,653 AA3 99,234 3,195,648.00 1.06 617446HW2 3.625% 04/01/2008 DD 03/06/03 A+ 3,175,488.00 .83 J,000,000 .00 NATIONAL RURAL UTILS COOP FIN .ooo 6,263 A2 115,765 3,465,480.00 1.16 637432CU7 7,250% 03/01/2012 DD 03/07/02 A 3,472,950.00 .90 1,000,000.00 PHILIP MORRIS COS INC NTS .ooo 7,382 BAA2 101.593 1,052,600.00 .34 718154CH8 7.500% 04/01/2004 DD 04/01/97 BBB 1,015,930.00 ,26 3,497,276.28 SBA GTD DEV PARTN 200l-20C 1 ,000 5,881 AAA 107.800 3,497,276.28 1.26 83162CLJO 6.340% 03/01/2021 AAA 3,770,063.83 .98 2,425,788,58 SBA GTD PARTN CTFS SBIC-PS 01 .ooo 6,211 AAA 106.905 2,425,788.58 .87 831641DD4 6.640% 02/10/2011 DD 02/21/01 NR 2,593,289.28 .68 1,600,000.00 UNITED AIRLS PASSTHRU 01-1 C .ooo 45 ,319 CA 15.073 1,600,000.00 .08 909317BC2 6.831% 03/01/2010 DD 08/22/01 A-241,168.00 .06 20,000,000 .00 US TREASURY NOTES .ooo 5,624 AAA 111,125 22,620,312.50 7.47 9128272.JO 06.250% 02/15/2007 DD 02/15/97 AAA 22,225,000.00 5,79 3,438,720.00 US TREASURY INFLATION INDEX NT ,000 3.273 AAA 110,750 3,749,689.05 1.28 9128273T7 3.625% 01/15/2008 DD 01/15/98 AAA 3,808,382.40 .99 14,678,950 .00 US TREASURY INFLATION INDEX NT .ooo 3,450 AAA 112,313 16,312,018.79 5 .54 9128274Y5 3,875% 01/15/2009 DD 01/15/99 AAA 16,486,295.72 4.29 57,100,000,00 US TREASURY NOTES ,000 5,363 AAA 107,219 62,782,901.47 20.60 9128276N7 05,750% 11/15/2005 DD 11/15/00 AAA 61,222,049.00 15,94 12,000,000.00 US TREASURY NT .000 3,254 AAA 99.870 11,870,156.25 4.03 912828BG4 3.250% 08/15/2008 DD 08/15/03 AAA 11,984,400.00 3.12 3,000,000.00 VERIZON GLOBAL FDG CORP GLOBAL .ooo 6,437 A2 114,578 3,530,490.00 1.15 92344GAT3 7.375% 09/01/2012 DD 08/26/02 A+ 3,437,340.00 .90 1,750,000,00 VIRGINIA ELEC & PWR 01 SER A .ooo 5,390 Al 106,687 1,743,840.00 ,62 927804ENO 5,750% 03/31/2006 DD 03/27/01 BBB+ 1,867,022.50 .49 16,363,200 ,00 US TREASURY INFLATION INDEX NT 3,817 3. 110 AAA 108.516 14,436,173.87 5 .97 9128272M3 3.375% 01/15/2007 DD 01/15/97 AAA 17,756,627,93 4.62 15,500,000.00 FEDERAL NATL MTG ASSN DEBS 5 ,967 6 ,688 AAA 106.537 16,154,410.00 5 .55 31359MFH1 7,125% 02/15/2005 DD 02/14/00 AAA 16,513,213.30 4.30 YLDANAL YIELD ANALYSIS PAGE 15 OCSF07522202 2003/11/30 RUN DATE 12/04/03 DISTRICT: LONG-TERM OPERATING RUN TIME 10.38.34 ---==-. PAR VALUE YT'M AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL --------------------------------~----------------------------------------------------- 1,125,040.99 FHLMC MULTICLASS MTG SER E3 A 6,316 3.895 AAA 99.279 1,126,239.59 .37 3133TCE95 VAR RT 08/15/2032 DD 12/01/97 AAA 1,116,929.44 .29 752,686.77 GNMA GTD REMIC TR 2000-9 FH 6,320 1,610 AAA 100.591 752,686.77 .25 3837H4NX9 VAR RT 02/16/2030 AAA 757,135.15 .20 0, 794.89 GNMA POOL f0500917 6 . 389 5.778 AAA 103.840 8,348.27 .oo 36210SPA0 6.000% 04/15/2029 DD 04/01/99 AAA 9,132.60 .oo 37,519.85 GNMA POOL 10506636 6. 389 5.778 AAA 103.840 35,614.54 .01 36210YY90 6.000% 04/15/2029 DD 04/01/99 AAA 38,960.55 .01 340,345.55 GNMA POOL t0503388 6. 389 5.778 AAA 103.840 323,062.38 .11 36210VF55 6.000% 03/15/2029 DD 03/01/99 AAA 353,414.27 .09 12,687.38 GNMA POOL 10499153 6. 389 5.778 AAA 103.840 12,043.10 .oo 36210QQE5 6.000% 02/15/2029 DD 02/01/99 AAA 13,174.56 .oo 452,391.15 GNMA POOL 10496461 6. 390 5.778 AAA 103.840 429,418.15 .15 36210MQN4 6.000% 01/15/2029 DD 01/01/99 AAA 469,762.25 .12 112,382.86 GNMA POOL 10491103 6. 390 5. 778 AAA 103.840 106,675.93 .03 36210FRY4 6.000% 01/15/2029 DD 01/01/99 AAA 116,698.18 .03 12,311.13 GNMA POOL 10486720 6. 390 5.778 AAA 103.840 11,685.96 .oo 36210AVM6 6.000% 12/15/2028 DD 12/01/98 AAA 12,783.86 .oo 25,430.32 GNMA POOL 10497343 6 ,390 5.778 AAA 103.840 24,138.94 .oo 36210NP45 6.000% 12/15/2028 DD 12/01/98 AAA 26,406.80 .01 16,463.83 GNMA POOL 10469688 6. 391 5.778 AAA 103.840 15,627.77 .oo 36209EXR8 6.000% 11/15/2028 DD 11/01/98 AAA 17,096.01 .oo 22,880.14 GNMA POOL 10467279 6,391 5. 778 AAA 103.840 21,718.26 .oo 36209CCQ7 6.000% 10/15/2028 DD 10/01/98 AAA 23,758.70 .01 39,609.54 GNMA POOL 10457814 6. 391 5.778 AAA 103.840 37,598.11 .01 36208QSB3 6.000% 10/15/2028 DD 10/01/98 AAA 41,130.48 .01 398,623.07 GNMA POOL 10467286 6. 391 5. 778 AAA 103.840 378,380.49 .13 36209CCX2 6.000% 10/15/2028 DD 10/01/98 AAA 413,929.56 .11 518,609.33 GNMA POOL 10465555 6. 392 5.778 AAA 103.840 492,273.71 .18 36209AE48 6.000% 09/15/2028 DD 09/01/98 AAA 538,523.10 .14 YLDANAL YIELD ANALYSIS PAGE 16 OCSF07522202 2003/11/30 RUN DATE 12/04/03 DISTRICT: LONG-TERM OPERATING RUN TIME 10.38.34 =·~ ·----·----· --·------------- PAR VALUE YT'.H AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ------------------------------------------------------------------------------------------------------~-- 13,209.99 GNMA POOL 10483452 6. 392 5.778 AAA 103.840 12,539,18 .oo 36209WBV3 6.000% 09/15/2028 DD 09/01/98 AAA 13,717.23 .oo 480,176.93 GNMA POOL 10465546 6,392 5.778 AAA 103.840 455,792.95 .16 36209AET3 6.000% 08/15/2028 DD 08/01/98 AAA 498,614.96 ,13 403,800.00 GNMA POOL 10468339 6 ,392 5.778 AAA 103.840 383,294.55 .14 36209DHQO 6,000% 08/15/2028 DD 08/01/98 AAA 419,305.27 .u 29,424.36 GNMA POOL 10438057 6 ,393 5.778 AAA 103.840 27,930.17 .01 36207PTN9 6.000% 05/15/2028 DD 05/01/98 AAA 30,554.21 .01 18,908.13 GNMA POOL 10468330 6. 393 5,778 AAA 103.840 17,947.94 .oo 36209DHF4 6.000% 05/15/2028 DD 05/01/98 AAA 19,634.17 .01 3,002,004.61 FHLMC MULTICLASS CTF SER 1620Z 6,499 5.736 AAA 104.599 2,845,864.67 1.05 3133T17A4 ·6.000% 11/15/2023 DD 11/01/93 AAA 3,140,066.80 .82 344,021.95 GNMA II POOL 1080088M 6. 705 4.309 AAA 101.525 351,547.43 .11 36225CC20 7,375% 06/20/2027 DD 06/01/97 AAA 349,268.63 .09 2,000,000.oo MARSH & MCLENNAN COS INC SR NT 6. 717 6.450 A2 102. 718 1,992,280,00 ,69 571748AB8 6.625% 06/15/2004 DD 06/14/99 AA-2,054,360.00 .53 2,500,000.00 FORD MTR CR CO GLOBAL LANDMARK 6. 739 6,522 A3 102.734 2,495,900.00 .86 345397SJ3 6,700% 07/16/2004 DD 07/16/99 BBB-2,568,350.00 .67 2,500,000.00 COUNTRYWIDE HOME LNS INC NT 6. 866 6.662 A3 102.828 2,498,400.00 .86 22237UAB8 6.850% 06/15/2004 DD 06/24/99 A 2,570,700,00 .67 237,974.44 GNMA II POOL 10080023 6 .992 5.483 AAA 102.583 241,915.89 .00 36225CAZ9 VAR RT 12/20/2026 DD 12/01/96 AAA 244,121.03 .06 2,100,000.00 FEDERAL NATL MTG ASSN DEBS 7,113 5.839 AAA 113.470 2,030,133.00 .00 31359MEY5 6.625% 09/15/2009 DD 09/01/99 AAA 2,382,880.29 ,62 1,000,000.00 FORD MOTOR CR CO NT 7 .582 6.454 A3 104.593 965,170.00 .35 345397GV9 6.750% 05/15/2005 DD 05/24/93 BBB-1,045,930.00 .27 946,689.51 WMP/HUNTOON PAIGE I000-11150 7 ,684 7,327 AAA 102.363 .926,128.61 .32 302998GE3 7.500% 12/01/2030 DD 10/21/99 AAA 969,061.01 .25 3,000,000.oo PACIFICORP SECD MTN ITR 00115 7. 709 6,970 A3 104.734 2,950,530.00 1.05 69512EEU5 7,300% 10/22/2004 DD 10/22/92 A 3,142,020.00 .82 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 YTIM AT BOOK 7 .967 .372 .358 YIELD ANALYSIS 2003/11/30 CURRENT MOODY MARKET YIELD S-P PRICE 7,290 Al 108.031 A+ 5,226 5.029 PAGE RUN DATE RUN TIME TOTAL COST/ MARKET VALUE 1,594,032.00 1,728,496.00 293,752,821,23 297,162,990.63 380,646,297.98 384,056,467.38 ___ -----~-~--- 17 12/04/03 I 10.38.34 I TYPE I TOTAL .se ,45 100.00 77,41 100.00 100.00 -----· Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGO00I0000 11/30/2003 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 3,436,319.59 3,436,319.59 0.79% 0.00 RECEIVABLE FOR INVESTMENTS 42,448.06 42,448.06 0.01% 0.00 SOLD PAYABLE FOR INVESTMENTS -2,801,816.34 -2,801,816.34 -0.64% 0.00 PURCHASED DU PONT DE NEMOUR 99.9008 1,000,000.000 999,008.33 999,008.33 0.23% 0.00 DISC12/ 17 /2003SEC ID: 26354BZH8 FEDERAL HOME LN BK CONS 99.6879 1,400,0100.000 1,395,630.83 1,395,630.83 0.32% 0.00 DISCSEC ID: 313384SS9 FEDERAL HOME LN BK CONS 99.6136 600,0100.000 597,681.67 597,681.67 0.14% 0.00 DISCMAT 02/09/2004SEC ID: 313384SWO FEDERAL HOME LN BK CONS 99.7321 2,I000,0100.000 1,994,641.11 1,994,641.11 0.46% 0.00 DISCMAT 02/25/2004SEC ID: 313384TN9 FEDERAL HOME LN BKS CINS 99.4625 900,01()0,000 895,162.50 895,162.50 0.21% 0.00 DISCMAT 03/17 /2004SEC ID: 313384UK3 FEDERAL HOME LN BK CONS 99.4313 2,000,000.000 1,988,625.00 1,988,625.00 0.46% 0.00 DISCMAT 05/19/2004SEC ID: 313384XA2 FEDERAL HOME LN MTG CORP 99.7308 20,800,01()0,000 20,744,004.66 20,744,004.66 4.77% 0.00 DISCMAT 01/15/2004SEC ID: 313396RV7 FEDERAL HOME LN MTG CORP 99.7266 1,200,0100.000 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 4,700,0iOO.OOO 4,684,085.28 4,684,085.28 1.08% 0.00 DISCMAT 02/02/2004SEC ID: 313396SP9 FEDERAL HOME LN MTG CORP 99.7240 2,.500,0•00.000 2,493,100.00 2,493,100.00 0.57% 0.00 DISCMAT 02/ 12/2004SEC ID: 313396SZ7 FEDERAL HOME LN MTG CORP 99.7313 3 ,,000,0,00.000 2,991,937.50 2,991,937.50 0.69% 0.00 DISCMAT 02/26/2004SEC ID: 313396TP8 1 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGOOOlOOOO 11/30/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base -· FEDERAL HOME LN MTG CORP 99.5807 2, 100,0·00.000 2,091,194.00 2,091,194.00 0.48% 0.00 DISCMAT 03/22/2004SEC ID: 313396UQ4 FEDERAL HOME LN MTG CORP 99.4225 3, 800,0·00.000 3,778,055.00 3,778,055.00 0.87% 0.00 DISCMAT 03/31/2004SEC ID: 313396UZ4 FEDERAL NATL MTG ASSN DISCSEC 99.6370 200,0•00.000 199,274.00 199,274.00 0.05% 0.00 ID: 313588QA6 FEDERAL NATL MTG ASSN 99.6627 800,0•00.000 797,301.63 797,301.63 0.18% 0.00 DISCOUNTMAT 12/15/2003SEC ID: 3 l 3588QN8 FEDERAL NATL MTG ASSN DISC 99.7535 5, 400,0•00.000 5,385,761.72 5,385,761.72 1.24% 0.00 NTSEC ID: 313588TF2 FEDERAL NATL MTG ASSN 99.5530 3, 800,0•00.000 3,783,014.00 3,783,014.00 0 .87% 0.00 DISCOUNTMAT 02/ 19/2004SEC ID:313588TGO FEDERAL NATL MTG ASSN 99.4262 2, 000,0•00.000 1,988,523.89 1,988,523.89 0.46% 0.00 DISCOUNTMAT 05 / 19 /2004SEC ID: 313588XA8 GENERAL ELEC CAP 99.6579 2, 800,0•00.000 2,790,420.11 2,790,420.11 0.64% 0.00 DISC12/10/2003SEC ID: 36959JZA4 U S TREASURY BILLDUE 99.5160 5, 700,0•00.000 5,672,410.42 5,672,410.42 1.31% 0.00 02/12/2004 DD 08/14/2003SEC ID:912795PK1 UNITED STATES TREASURY 99.4870 17, 000,0,00.000 16,912,790.02 16,912,790.02 3.89% 0.00 BILLDUE 04/22/2004 DD 10/23/03SECID:912795PV7 U S TREASURY BILL 0.000% 99.4843 12,000,000.000 11,938,120.00 11,938,120.00 2.75% 0.00 04/29/2004 DD 10/30/03SEC ID: 912795PWS U S TREASURY BILL 0.000% 99.4820 4,400,000.000 4,377,207.88 4,377,207.88 1.01% 0.00 05/06/2004 DD 11/06/03SEC ID: 912795PX3 U S TREASURY BILLDUE 99.4893 4,300,000.000 4,278,040.68 4,278,040.68 0.98% 0.00 05/27/2004 DD 1 l/28/2003SEC ID: 912795QA2 FIRST BOSTON CORP REPOOl.020% 100.0000 9,800,000.000 9,800,000.00 9,800,000.00 2.26% 0.00 12/01/2003 DD l l/28/03SEC ID: 99413F174 2 Workbench OCSD-CONSOLIDATED -OCSGO00l0000 Price Description Base Shares Par --- Asset Detail by Currency 11/30/2003 Cost DREYFUS TREASURY CASH 100.0000 3,422,547.150 MGMTSEC ID: 99608524 7 Base 3,422,547.15 TOTAL CASH & CASH EQUIVALENTS 117,622,547.150 117,872,207.36 FIXED INCOME SECURITIES AIG SUNAMERICA GLOBAL REG S 5. 850% 08/01/2008 DD 08/08/01SECID:U00907AA0 COMMIT TO PUR FNMA SF MTG 6. 000% 12/01/2033 DD 12/01/03SECID:01F0606C4 ALLSTATE CORP SR NT7 .875% 05/01/2005 DD 05/01/00SEC ID: 020002AL5 ASSOCIATES CORP NA MTN SR00043 7 .920% 07/13/2004 DD 07 / 13 /94SEC ID: 045906BU7 ASSOCIATES CORP NORTH AMER5. 800% 04/20/2004 DD 04/20/99SECID:046003KA6 BANK OF AMERICA CORP SR GBL NT6.625% 06/15/2004 DD 06/15/99SEC ID: 066050CW3 BEAR STEARNS MTN # TR 00459VAR RT 12/01/2003 DD 08/17/01SECID:073928VC4 BELL ATLANTIC-NEW JERSEY INC5. 875% 02/01/2004 DD 02/01/94SECID:077858AA6 CIT GROUP INC NEW SR NT 5.500% 11/30/2007 DD 12/02/02SEC ID: 125581AD0 CITIGROUP INC GLOBAL SUB NT5. 625% 08/27/2012 DD 08/26/02SECID: 172967BP5 COLGATE PALMOLIVE MTN TR 000585.270% 12/01/2003 DD 11/24/98SEC ID: 19416QCK4 COUNTRYWIDE HOME LNS INC NT6. 850% 06/15/2004 DD 06/24/99SECID:22237UAB8 109.8670 102.7500 108.0310 103.9840 101.7340 102.8430 100.0000 100.7340 106.5780 105.0150 100.0000 102.8280 752,0100.000 826,199.84 2,:500,000.000 2,552,812.50 1,1600,0•00.000 1,594,032.00 100,0100.000 104,199.00 1,,000,0,00.000 1,041,290.00 .'500,0,00.000 518,385.00 900,000.000 899,406.00 650,000.000 677,046.50 1,;500,0,00.000 1,527,135.00 5,1000,0·00.000 5,333,600.00 :300,0•00.000 308,808.00 2,.500,0·00.000 2,498,400.00 Report ID: GL8013 Base Currency: USD Alternate Base Currency: Exchange Rate: Status: FINAL Market Value Base 3,422,547.15 117,872,207.36 826,199.84 2,568,750.00 1,728,496.00 103,984.00 1,017,340.00 514,215.00 900,000.00 654,771.00 1,598,670.00 5,250,750.00 300,000.00 2,570,700.00 % of Total 0.79% 27.13% 0 .19% 0.59% 0.40% 0.02% 0.23% 0.12% 0.21% 0.15% 0.37% 1.21% 0.07% 0.59% Net Unrealized Gain/Loss Base 0.00 0.00 0.00 15,937.50 134,464.00 -215.00 -23,950.00 -4,170.00 594.00 -22,275.50 71,535.00 -82,850.00 -8,808.00 72,300.00 ----------------------------··--------------------------------------------------------- 3 Workbench ----·------------ Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGO00l0000 11/30/2003 Status: FINAL ---- I Description ------------Net Unrealized Price Cost Market Value % of Gain/Loss Base Shares Par Base Base Total Base . -- WMP/HUNTOON PAIGE #000-102.3631 '946,6,89.510 926,128.61 969,061.01 0.22% 42,932.40 111507.500% 12/01/2030 DD 10/21/99SECID:302998GE3 FHLMC GROUP #G4-0353 7.500% 102.3828 79,303.080 81,310.45 81,192.67 0.02% -117.78 10/01/2004 DD 03/01/99SEC ID: 3128DBMA2 FEDERAL HOME LN BK CONS BDS7. 106.5040 7,.500,0·00.000 7,997,625.00 7,987,800.00 1.84% -9,825.00 125% 02/15/2005 DD 02/08/00SEC ID: 3133MAUN7 FHLMC MULTICIASS MTG SER E3 99.2790 1, 125,0-40. 990 1,126,239.59 1,116,929.44 0.26% -9,310.15 AVAR RT 08/15/2032 DD 12/01/97SECID:3133TCE95 FHLMC MULTICIASS CTF SER 104.5990 3,•002,0·04.610 2,845,864.67 3,140,066.80 0.72% 294,202.13 162026.000% 11/15/2023 DD ll/01/93SECID:3133Tl7A4 FEDERAL FARM CR BKS CONS 100.6696 1, 350,0·00.000 1,399,963.50 1,359,040.01 0.31% -40,923.49 SYSTE6.40% 01/23/2004 DD 01/01/1999SECID: 31331H6G7 FEDERAL HOME LN MTG CORP DEB 101.0029 1, 100,0·00.000 1,125,905.00 1,111,031.46 0.26% -14,873.54 3.750% 04/15/2004 DD 04/15/02SECID:3134A4PH1 FHLMC GROUP #78-6064 6.384% 103.4554 79,314.480 77,381.18 82,055.11 0.02% 4,673.93 01/01/2028 DD 12/0l/97SEC ID: 31348SWZ3 FEDERAL NATL MTG ASSN DEBS5. 100.8478 4, 200,0·00.000 4,350,168.00 4,235,608.86 0.97% -114,559.14 125% 02/13/2004 DD 02/08/99SEC ID: 31359MEM1 FEDERAL NATL MTG ASSN DEBS6. 113.4705 2, 100,0·00.000 2,030,133.00 2,382,880.29 0.55% 352,747.29 625% 09/15/2009 DD 09/01/99SEC ID: 31359MEY5 FEDERAL NATL MTG ASSN DEBS7. 106.5369 15,.500,000.000 16,154,410.00 16,513,213.30 3.80% 358,803.30 125% 02/15/2005 DD 02/14/00SEC ID: 31359MFH1 FEDERAL NATL MTG ASSN DEBS5. 106.5415 11, 350,0•00.000 11,521,271.50 12,092,459.12 2.78% 571,187.62 250% 06/15/2006 DD 06/22/01SECID:31359MJX2 FNMA POOL #0254510 5.000% 101.5703 859,012.210 884,782.58 872,501.36 0 .20% -12,281.22 11/01/2017 DD 10/01/02SEC ID: 31371KVB4 ------------------------------------------------ 4 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGO00l0000 11/30/2003 Status: FINAL -------Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base ------.- FNMA POOL #0254631 5.000% 101.4453 181,143.730 186,578.05 183,761.82 0.04% -2,816.23 02/01/2018 DD 01/01/03SEC ID: 31371KY47 FNMA POOL #0254760 5.000% 101.4453 163,047.620 167,939.04 165,404.16 0.04% -2,534.88 06/01/2018 DD 05/01/03SEC ID: 31371K5V9 FNMA POOL #0254866 5.000% 101.4453 70,799.100 72,923.08 71,822.37 0.02% -1,100.71 09/01/2018 DD 08/01/03SEC ID: 31371LCB3 FNMA POOL #0254953 5.000% 101.4453 376,577.440 381,402.34 382,020.15 0.09% 617.81 11/01/2018 DD 10/01/03SEC ID: 31371LE21 FNMA POOL #0254987 5.000% 101.3701 ·999,900.000 1,012,711.21 1,013,599.70 0.23% 888.49 12/01/2018 DD 11/01/03SEC ID: 31371LF46 FNMA POOL #0323980 6.000% 104.7969 219,336.470 229,000.99 229,857.78 0.05% 856.79 04/01/2014 DD 09/01/99SEC ID: 31374T2M0 FNMA POOL #0357328 5.000% 101.3925 33,182.540 34,178.01 33,644.59 0.01% -533.42 01/01/2018 DD 01/01/03SEC ID: 31376J4M8 FNMA POOL #0357430 5.000% 101.4453 1,,617,925.650 1,636,127.32 1,641,309.69 0.38% 5,182.37 09/01/2018 DD 09/01/03SEC ID: 31376KA71 FNMA POOL #0456482 6.000% 104.7969 73,773.500 77,024.14 77,312.33 0.02% 288.19 02/01/2014 DD 02/01/99SEC ID: 31381CCT2 FNMA POOL #0509649 6.000% 104.7969 177,9·93.220 185,836.05 186,531.34 0.04% 695.29 09/01/2014 DD 09/01/99SEC ID: 31383QEW0 FNMA POOL #0535451 6.000% 104.7969 174,177.120 181,851.80 182,532.19 0.04% 680.39 06/01/2015 DD 07 /01/00SEC ID: 31384VZQ8 FNMA POOL #0535672 6.000% 104.7969 3,766,954.110 3,932,935.53 3,947,650.38 0.91% 14,714.85 01/01/2016 DD 12/01/00SEC ID: 31384WCH1 FNMA POOL #0545296 6.000% 104.7469 1,252,717.660 1,307,915.53 1,312,182.66 0.30% 4,267.13 11/01/2016 DD 10/01/0lSEC ID: 31385HXZ0 5 Workbench -----------·· Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED-OCSGO00l0000 11/30/2003 Status: FINAL ------Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base - FNMA POOL #0545580 6.000% 104.7094 105,717.200 110,375.36 110,695.81 0.03% 320.45 03/01/2017 DD 03/01/02SEC ID: 31385JCR7 FNMA POOL #0545998 6.000% 102.6911 205,631.110 213,856.35 211,164.79 0.05% -2,691.56 11/01/2032 DD 10/01/02SEC ID: 31385JRT7 FNMA POOL #0555101 6.000% 104.8469 185,719.050 193,902.28 194,720.61 0.04% 818.33 10/01/2017 DD 11/01/02SEC ID: 31385WU23 FNMA POOL #0555285 6.000% 102.8867 830,446.270 863,664.13 854,418.93 0.20% -9,245.20 03/01/2033 DD 02/01/03SEC ID: 31385W2S7 FNMA POOL #0555363 5.000% 101.4453 391,033.620 402,764.63 396,685.27 0.09% -6,079.36 04/01/2018 DD 03/0l/03SEC ID: 31385W5Yl FNMA POOL #0555453 S.000% 101.4453 40,046.530 40,559.63 40,625.33 0.01% 65.70 05/01/2018 DD 04/01/03SEC ID: 31385XBW6 FNMA POOL #0555528 6.000% 102.8867 802,440.910 834,538.55 825,605.13 0.19% -8,933.42 04/01/2033 DD 05/0l/03SEC ID: 31385XD95 FNMA POOL #0555545 5.000% 101.4453 325,949.320 335,727.80 330,660.30 0.08% -5,067.50 06/01/2018 DD 05/0l/03SEC ID: 31385XES2 FNMA POOL #0555621 5.000% 101.3701 1,127,611.960 1,140,297.59 1,143,061.45 0.26% 2,763.86 07/01/2018 DD 06/01/03SEC ID: 31385XG68 FNMA POOL #0555640 6.000% 102.8867 0.010 0.01 0.01 0.00% 0.00 07/01/2033 DD 06/01/03SEC ID: 31385XHR1 FNMA POOL #0576386 6.000% 104.3007 65,488.230 68,373.80 68,304.66 0.02% -69.14 05/01/2016 DD 05/01/0lSEC ID: 31386XJ72 FNMA POOL #0576739 6.000% 104.7094 180,265.760 188,208.72 188,755.14 0.04% 546.42 04/01/2016 DD 04/01/0lSEC ID: 31386XV86 FNMA POOL #0580888 6.000% 104.7344 237,644.000 248,115.18 248,894.97 0.06% 779.79 05/01/2016 DD 05/01/0lSEC ID: 31387DJ91 -------------------------------------------------------------------------------------- 6 Workbench Asset Detail Report ID: GL8013 • Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGO00 10000 11/30/2003 Status: FINAL -------Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base -- FNMA POOL #0594002 6.000% 104.5469 192,9,04.930 201,404.80 201,676.09 0.05% 271.29 07/01/2016 DD 07 /01/0lSEC ID: 31387T3K8 FNMA POOL #0597376 6.000% 104.7094 256,057.200 267,339.72 268,115.88 0.06% 776.16 09/01/2016 DD 08/01/0lSEC ID: 31387XT96 FNMA POOL #0605259 6.000% 104.7094 182,017.850 190,038.01 190,589.74 0.04% 551.73 09/01/2016 DD 09/01/0lSEC ID: 31388HMG1 FNMA POOL #0608366 6.000% 104.7094 108,368.850 113,143.85 113,472.34 0.03% 328.49 10/01/2016 DD 09/01/0lSEC ID: 31388LZ78 FNMA POOL #0616734 6.000% 104.8594 171,282.810 178,829.95 179,606.09 0.04% 776.14 12/01/2016 DD 12/01/0lSEC ID: 31388WEF9 FNMA POOL #0630812 6.000% 104.3411 209,265.230 218,485.98 218,349.70 0.05% -136.28 02/01/2017 DD 02/01/02SEC ID: 31389NYH2 FNMA POOL #0632376 6.000% 104.8469 868,744.720 907,023.80 910,851.65 0.21% 3,827.85 07/01/2017 DD 07 /01/02SEC ID: 31389QQ50 FNMA POOL #0653116 6.000% 104.8469 509,731.170 532,191.20 534,437.18 0.12% 2,245.98 07/01/2017 DD 07 /01/02SEC ID: 31390QSD8 FNMA POOL #0673280 6.000% 104.5469 208,854.170 218,056.80 218,350.52 0.05% 293.72 08/01/2017 DD ll/01/02SEC ID: 31391P6R2 FNMA POOL #0681309 5.000% 101.4453 584,844.190 602,389.51 593,297.00 0.14% -9,092.51 02/01/2018 DD 02/01/03SEC ID: 31391Y3S4 FNMA POOL #0681334 5.000% 101.4453 73,753.380 75,965.98 74,819.34 0.02% -1,146.64 02/01/2018 DD 01/01/03SEC ID: 31391Y4Tl FNMA POOL #0684908 5.000% 101.5453 355,998.830 360,560.07 361,500.12 0.08% 940.05 06/01/2018 DD 05/01/03SEC ID: 31400D3Rl FNMA POOL #0685200 5.000% 101.4453 209,789.660 212,477.59 212,821.77 0.05% 344.18 03/01/2018 DD 03/01/03SEC ID: 31400EGH7 7 Workbench ----------------. Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGO00lO000 11/30/2003 Status: FINAL -----------. -Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base -- FNMA POOL #0685665 5.000% 101.4453 37,366.960 38,487.97 37,907.03 0.01% -580.94 02/01/2018 DD 02/01/03SEC ID: 31400EW22 FNMA POOL #0686318 5.000% 101.4453 322,316.290 331,985.78 326,974.76 0 .08% -5,011.02 03/01/2018 DD 03/01/03SEC ID: 31400FPB7 FNMA POOL #0688739 5.000% 101.4453 124,553.200 128,289.79 126,353.38 0.03% -1,936.41 06/01/2018 DD 06/01/03SEC ID: 31400JEL9 FNMA POOL #0689859 5.000% 101.4453 138,272.050 140,043.66 140,270.51 0.03% 226.85 05/01/2018 DD 05/01/03SEC ID: 31400KMG8 FNMA POOL #0693834 5.000% 101.5703 762,067.340 784,929.36 774,034.16 0.18% -10,895.20 03/01/2018 DD 03/01/03SEC ID: 31400PY74 FNMA POOL #0695852 5.000% 101.4453 279,876.090 288,272.37 283,921.17 0.07% -4,351.20 05/01/2018 DD 05/01/03SEC ID: 31400SBVO FNMA POOL #0695889 5.000% 101.4453 850,345.210 875,855.56 862,635.33 0.20% -13,220.23 05/01/2018 DD 05/01/03SEC ID: 31400SC23 FNMA POOL #0697026 5.000% 101.4453 27,6,80.190 28,510.61 28,080.25 0.01% -430.36 05/01/2018 DD 04/01/03SEC ID: 31400TLF2 FNMA POOL #0698939 6.000% 104.9844 92,437.070 96,510.08 97,044.48 0.02% 534.40 09/01/2017 DD 03/01/03SEC ID: 31400VPY2 FNMA POOL #0702210 5.000% 101.3701 284,613.180 293,151.58 288,512.69 0.07% -4,638.89 05/01/2018 DD 05/01/03SEC ID: 31401ADP9 FNMA POOL #0702328 5.000% 101.4453 151,690.630 153,634.17 153,883.03 0.04% 248.86 05/01/2018 DD 04/01/03SEC ID: 31401AHD2 FNMA POOL #0703195 6.000% 104.9844 83,209.150 86,875.56 87,356.61 0.02% 481.05 01/01/2017 DD 04/01/03SEC ID: 31401BGC3 FNMA POOL #0709148 5.000% 101.4453 305,196.380 314,352.27 309,607.41 0.07% -4,744.86 06/01/2018 DD 06/01/03SEC ID: 31401HZM7 ----··----------------------------------------------------- 8 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGOOOlOOOO 11/30/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL #0709360 5.000% 101.4453 701,877.240 710,870.04 712,021.54 0.16% 1,151.50 07/01/2018 DD 06/01/03SEC ID: 31401JB56 FNMA POOL #0709826 5.000% 101.4453 146,432.690 148,308.86 148,549.10 0.03% 240.24 06/01/2018 DD 06/01/03SEC ID: 31401JSP4 FNMA POOL #0709917 5.000% 101.4453 268,422.860 271,862.03 272,302.40 0.06% 440.37 06/01/2018 DD 06/01/03SEC ID: 31401JVJ4 FNMA POOL #0709963 5.000% 101.3701 27,274.000 27,623.45 27,647.68 0.01% 24.23 06/01/2018 DD 06/01/03SEC ID: 31401JWYO FNMA POOL #0710235 5.000% 101.4453 818,490.370 843,045.09 830,320.09 0.19% -12,725.00 06/01/2018 DD 06/0l/03SEC ID: 31401KBC8 FNMA POOL #0713344 5.000% 101.4453 26,493.870 27,288.68 26,876.79 0.01% -411.89 06/01/2018 DD 06/0l/03SEC ID: 31401NP52 FNMA POOL #0713365 5.000% 101.4453 342,541.640 346,930.45 347,492.43 0.08% 561.98 07/01/2018 DD 07 /01/03SEC ID: 31401NQS1 FNMA POOL #0720319 5.000% 101.4453 '999,9'99.370 1,012,811.86 1,014,452.46 0.23% 1,640.60 07/01/2018 DD 07 /01/03SEC ID: 31401WG45 FNMA POOL #0720369 5.000% 101.3701 2,487,120.370 2,561,733.98 2,521,196.58 0.58% -40,537.40 06/01/2018 DD 06/0l/03SEC ID: 31401WJNO FNMA POOL #0721629 5.000% 101.5703 319,195.880 328,771.77 324,208.24 0.07% -4,563.53 07/01/2018 DD 06/0l/03SEC ID: 31401XVW4 FNMA POOL #0723487 5.000% 101.4453 254,163.980 257,023.32 257,837.44 0.06% 814.12 06/01/2018 DD 06/01/03SEC ID: 31402AXQ4 FNMA POOL #0729601 5.000% 101.4453 439,182.560 444,809.59 445,530.11 0.10% 720.52 07/01/2018 DD 07 /01/03SEC ID: 31402HRW3 FNMA POOL #0732873 5.000% 101.6703 36,719.150 37,189.61 37,332.47 0.01% 142.86 11/01/2018 DD 10/01/03SEC ID: 31402MFN5 9 Workbench ----- Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLlDATED -OCSGO00I0000 11/30/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL #0737130 5.000% 101.4453 754,718.010 764,387.83 765,626.02 0.18% 1,238.19 10/01/2018 DD 10/01/03SEC ID: 31402S4P9 FNMA POOL #0738211 5.000% 101.3701 :595,2 59. 770 602,886.54 603,415.47 0.14% 528.93 10/01/2018 DD 10/01/03SEC ID: 31402UDQ2 FNMA POOL #0738487 5.000% 101.4453 228,0-81.280 231,003.57 231,377.76 0.05% 374.19 10/01/2018 DD 10/01/03SEC ID: 31402UNC2 FNMA POOL #0740471 5.000% 101.3701 790,309.700 800,435.54 801,137.79 0.18% 702.25 10/01/2018 DD 10/01/03SEC ID: 31402WT40 FNMA POOL #0740748 5.000% 101.4453 :834,454.000 845,145.44 846,514.45 0.19% 1,369.01 10/01/2018 DD 11/01/03SEC ID: 31402W5H7 FNMA POOL #0744008 5.000% 101.4453 1,189,028.270 1,204,262.69 1,206,213.41 0.28% 1,950.72 07/01/2018 DD 09/01/03SEC ID: 31403BR54 FNMA POOL #0744316 5.000% 101.3701 176,746.710 179,011.28 179,168.33 0.04% 157.05 09/01/2018 DD 09/01/03SEC ID: 31403B324 FNMA POOL #0747914 5.000% 101.4453 364,5-80.000 369,251.18 369,849.31 0.09% 598.13 11/01/2018 DD 11/01/03SEC ID: 31403F3X0 FNMA POOL #0748400 5.000% 101.3701 245,282.020 248,424.70 248,642.65 0.06% 217.95 08/01/2018 DD 09/01/03SEC ID: 31403GNR9 FNMA POOL #0748899 5.000% 101.3705 1,,042,469.000 1,055,825.63 1,056,756.03 0.24% 930.40 12/01/2018 DD 11/01/03SEC ID: 31403G7L0 FNMA POOL #0750377 5.000% 101.3705 2,575,784.000 2,608,786.23 2,611,085.09 0.60% 2,298.86 11/01/2018 DD 11/01/03SEC ID: 31403JUA2 FNMA POOL #0750380 5.000% 101.3705 2,146,534.000 2,174,036.48 2,175,952.23 0.50% 1,915.75 11/01/2018 DD 11/0l/03SEC ID: 31403JUD6 FNMA POOL #0750445 5.000% 101.3705 194,%7.000 197,465.01 197,639.02 0.05% 174.01 11/01/2018 DD 11/01/03SEC ID: 31403JWE2 10 Workbench ·--- Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGO00lO000 11/30/2003 Status: FINAL -- Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base ---- FNMA POOL #0751960 5.000% 101.3701 917,5-85.000 929,341.56 930,156.90 0.21% 815.34 12/01/2018 DD 11/01/03SEC ID: 31403LMH1 FNMA POOL #0753425 5.000% 101.4453 999,9•00.000 1,011,461.34 1,014,351.65 0.23% 2,890.31 11/01/2018 DD 11/01/03SEC ID: 31403NA23 FNMA POOL #0755165 5.000% 101.4453 663,384.000 671,883.60 672,971.96 0.15% 1,088.36 12/01/2018 DD 11/01/03SEC ID: 31403Q6A3 FNMA POOL #0756372 5.000% 101.4453 999,9•00.000 1,011,461.34 1,014,351.65 0.23% 2,890.31 11/01/2018 DD ll/Ol/03SEC ID: 31403SJR8 FNMA POOL #0765165 5.000% 101.2813 45,596.000 46,180.20 46,180.20 0.01% 0.00 11/01/2018 DD 11/01/03SEC ID: 31404DCA4 FORD MOTOR CR CO NT6.750% 104.5930 1, 000,0•00.000 965,170.00 1,045,930.00 0.24% 80,760.00 05/15/2005 DD 05/24/93SEC ID: 345397GV9 FORD MTR CR CO GLOBAL 102.7340 2, 500,0·00.000 2,495,900.00 2,568,350.00 0.59% 72,450.00 LANDMARK6.700% 07/16/2004 DD 07/16/99SECID:345397SJ3 GNMA POOL #0596612 6.500% 105.3164 384,843.740 403,905.53 405,303.61 0.09% 1,398.08 09/15/2032 DD 09/01/02SEC ID: 36200BYH4 GNMA POOL #0569358 6.500% 105.0311 1,295,429.220 1,325,790.84 1,360,603.64 0.31% 34,812.80 04/15/2032 DD 04/0l/02SEC ID: 36200QQK3 GNMA POOL #0569685 6.500% 105.3477 56,586.260 59,389.04 59,612.30 0.01% 223.26 02/15/2032 DD 02/01/02SEC ID: 36200Q2S2 GNMA POOL #0570019 6. 500% 105.3164 94,336.150 99,008.74 99,351.45 0.02% 342.71 07/15/2032 DD 07/01 /02SEC ID: 36200RG48 GNMA POOL #0574323 6.500% 105.3477 601,5,64.030 631,360.25 633,733.63 0.15% 2,373.38 12/15/2031 DD 12/01/0lSEC ID: 36200WAY7 GNMA POOL #0575364 6.500% 105.3477 60,775.180 63,785.45 64,025.23 0.01% 239.78 11/15/2031 DD 11/01/0lSECID: 36200XFD6 11 Workbench __ , ___ Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGO00l0OO0 11/30/2003 Status: FINAL ---•--- Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base ----- GNMA POOL #0587117 6.500% 105.3477 23,l 72.590 24,320.36 24,411.78 0.01% 91.42 06/15/2032 DD 06/01/02SEC ID: 36201MG22 GNMA POOL #0587439 6.500% 105.3164 68,561.410 71,957.34 72,206.42 0.02% 249.08 11/15/2032 DD 12/01/02SEC ID: 36201MS45 GNMA POOL #0421389 6.500% 105.6914 15,463.380 16,229.31 16,343.46 0.00% 114.15 04/15/2026 DD 04/01/96SEC ID: 36206UC23 GNMA POOL #0438057 6.000% 103.8398 29,424.360 27,930.17 30,554.21 0.01% 2,624.04 05/15/2028 DD 05/01/98SEC ID: 36207PTN9 GNMA POOL #0449851 6.500% 105.1050 25,013.020 26,251.95 26,289.94 0.01% 37.99 01/15/2028 DD 01/01/98SEC ID: 36208FWLO GNMA POOL #0457814 6.000% 103.8398 39,609.540 37,598.11 41,130.48 0.01% 3,532.37 10/15/2028 DD 10/01/98SEC ID: 36208QSB3 GNMA POOL #0465546 6.000% 103.8398 480,176.930 455,792.95 498,614.96 0.11% 42,822.01 08/15/2028 DD 08/01/98SEC ID: 36209AET3 GNMA POOL #0465555 6.000% 103.8398 518,6.09.330 492,273.71 538,523.10 0 .12% 46,249.39 09/15/2028 DD 09/01/98SEC ID: 36209AE48 GNMA POOL #0466845 6.500% 105.5664 74,805.810 78,511.03 78,969.81 0.02% 458.78 06/15/2028 DD 06/0l/98SEC ID: 36209BTA6 GNMA POOL #0467279 6.000% 103.8398 22,880.140 21,718.26 23,758.70 0.01% 2,040.44 10/15/2028 DD 10/0l/98SEC ID: 36209CCQ7 GNMA POOL #0467286 6.000% 103.8398 398,623.070 378,380.49 413,929.56 0.10% 35,549.07 10/15/2028 DD 10/01/98SEC ID: 36209CCX2 GNMA POOL #0468052 6.500% 105.5664 261,418.890 274,367.29 275,970.54 0.06% 1,603.25 07/15/2028 DD 07 /01/98SEC ID: 36209C5M4 GNMA POOL #0468330 6.000% 103.8398 18,9·08.130 17,947.94 19,634.17 0 .00% 1,686.23 05/15/2028 DD 05/01/98SEC ID: 36209DHF4 12 Workbench Asset Detail Report ID: GL8013 Base Currency: USO by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGO00 10000 11/30/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base ---- GNMA POOL #0468339 6.000% 103.8398 403,800.000 383,294.55 419,305.27 0.10% 36,010.72 08/15/2028 DD 08/01/98SEC ID: 36209DHQ0 GNMA POOL #0469688 6.000% 103.8398 16,463.830 15,627.77 17,096.01 0.00% 1,468.24 11/15/2028 DD ll/01/98SEC ID: 36209EXR8 GNMA POOL #0476041 6.500% 105.5664 224,632.540 235,407.88 237,136.51 0.05% 1,728.63 06/15/2028 DD 06/0l/98SEC ID: 36209MZE7 GNMA POOL #0478626 6.500% 105.4727 179,185.860 187,781.18 188,992.09 0.04% 1,210.91 01/15/2029 DD 0l/01/99SEC ID: 36209QVT9 GNMA POOL #0480598 6.500% 105.4727 214,424.530 224,710.22 226,159.26 0.05% 1,449.04 10/15/2028 DD 10/01/98SEC ID: 36209S3F6 GNMA POOL #0483452 6.000% 103.8398 13,209.990 12,539.18 13,717.23 0.00% 1,178.05 09/15/2028 DD 09/01/98SEC ID: 36209WBV3 GNMA POOL #0485527 6.500% 105.3477 488,829.750 513,042.10 514,970.70 0.12% 1,928.60 06/15/2031 DD 06/01/0lSEC ID: 36209YLG1 GNMA POOL #0485610 6.500% 105.3477 539,528.920 566,252.46 568,381.09 0.13% 2,128.63 07/15/2031 DD 07 /01/0lSEC ID: 36209YN38 GNMA POOL #0485682 6.500% 105.3477 111,928.030 117,471.97 117,913.56 0.03% 441.59 08/15/2031 DD 08/01/0lSEC ID: 36209YRB6 GNMA POOL #0485703 6.500% 105.3477 113,450.460 119,069.81 119,517.40 0.03% 447.59 08/15/2031 DD 08/01/0lSEC ID: 36209YRY6 GNMA POOL #0486720 6.000% 103.8398 12,311.130 11,685.96 12,783.86 0.00% 1,097.90 12/15/2028 DD 12/01/98SEC ID: 36210AVM6 GNMA POOL #0491103 6.000% 103.8398 112,382.860 106,675.93 116,698.18 0.03% 10,022.25 01/15/2029 DD 01/0l/99SEC ID: 36210FRY4 GNMA POOL #0496461 6.000% 103.8398 452,391.150 429,418.15 469,762.25 0.11% 40,344.10 01/15/2029 DD 0l/01/99SEC ID: 36210MQN4 ------------------------------------------------------------------------------ 13 Workbench ----- Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGO00l0000 11/30/2003 Status: FINAL ---Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base GNMA POOL #0497343 6.000% 103.8398 25,430.320 24,138.94 26,406.80 0.01% 2,267.86 12/15/2028 DD 12/01/98SEC ID: 36210NP45 GNMA POOL #0499153 6.000% 103.8398 12,687.380 12,043.10 13,174.56 0.00% 1,131.46 02/15/2029 DD 02/01/99SEC ID: 36210QQE5 GNMA POOL#0500917 6.000% 103.8398 8,794.890 8,348.27 9,132.60 0.00% 784.33 04/15/2029 DD 04/0l/99SEC ID: 36210SPA0 GNMA POOL #0503388 6.000% 103.8398 340,345.550 323,062.38 353,414.27 0.08% 30,351.89 03/15/2029 DD 03/01/99SEC ID: 36210VF55 GNMA POOL #0506636 6.000% 103.8398 37,519.850 35,614.54 38,960.55 0.01% 3,346.01 04/15/2029 DD 04/01/99SEC ID: 36210YY90 GNMA POOL #0512235 6.500% 105.4102 10,948.760 11,491.06 11,541.11 0.00% 50.05 11/15/2029 DD 11/01/99SEC ID: 36211GBC6 GNMA POOL #0514326 6.500% 105.4727 l 78,9'62.070 187,546.65 188,756.06 0.04% 1,209.41 07/15/2029 DD 07 /01/99SEC ID: 36211JLF2 GNMA POOL #0530053 6.500% 105.0043 54,734.820 57,445.91 57,473.94 0 .01% 28.03 04/15/2031 DD 04/01/0lSEC ID: 36212CZS3 GNMA POOL #0530290 6.500% 105.3477 69,041.370 72,353.20 72,733.47 0.02% 380.27 03/15/2031 DD 04/01/0lSEC ID: 36212DC31 GNMA POOL #0537885 6.500% 105.3477 119,191.360 125,095.05 125,565.31 0.03% 470.26 02/15/2031 DD 02/01/0lSEC ID: 36212MREI GNMA POOL #0547512 6.500% 105.3477 13,388.280 14,051.42 14,104.24 0.00% 52.82 04/15/2031 DD 04/01/0lSEC ID: 36212YGV9 GNMA POOL #0547715 6.500% 105.3477 128,$02.450 134,666.55 135,374.32 0.03% 707.77 02/15/2031 DD 02/01/0lSEC ID: 36212YN82 GNMA POOL #0552322 6.500% 105.3477 82,&81.100 86,776.40 87,102.60 0.02% 326.20 01/15/2032 DD 0l/0l/02SEC ID: 36213ESK3 --------------------------------------------------- 14 Workbench ---- Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGO00l0000 11/30/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base GNMA POOL #0552466 6.500% 105.0311 <628,016.990 659,123.46 659,613.19 0.15% 489.73 03/15/2032 DD 03/01/02SEC ID: 36213EW36 GNMA POOL #0552659 6.500% 105.3164 476,472.180 500,072.43 501,803.39 0.12% 1,730.96 07/15/2032 DD 07 /01/02SEC ID: 36213E5U6 GNMA POOL#0561017 6.500% 105.3477 464,148.580 487,138.44 488,969.67 0.11% 1,831.23 07/15/2031 DD 07 /01/0lSEC ID: 36213QG29 GNMA II POOL #0080023VAR RT 102.5829 237,974.440 241,915.89 244,121.03 0.06% 2,205.14 12/20/2026 DD 12/01/96SEC ID: 36225CAZ9 GNMA II POOL #080088M 7.375% 101.5251 344,021.950 351,547.43 349,268.63 0.08% -2,278.80 06/20/2027 DD 06/01/97SEC ID: 36225CC20 GNMA II POOL #0080395VAR RT 100.8708 284,976.240 282,393.64 287,457.67 0.07% 5,064.03 04/20/2030 DD 04/01/00SEC ID: 36225CNM4 GNMA II POOL #080408X 6.500% 100.8182 2,565,793.890 2,539,735.04 2,586,785.93 0.60% 47,050.89 05/20/2030 DD 05/01/00SEC ID: 36225CN28 GENERAL ELEC CAP MTN #TR 100.0780 1, 000 ,0·00. 000 1,001,089.00 1,000,780.00 0.23% -309.00 00545VAR RT 05/20/2004 DD 05/20/02SECID:36962GYS7 GENERAL ELEC CAP MTN #TR 103.3590 5, 000,0·00.000 5,203,500.00 5,167,950.00 1.19% -35,550.00 00575 5.450% 01/15/2013 DD 12/06/02SECID:36962GZY3 GENERAL MTRS ACCEP CORP SR NT 105.7500 3, 000,0·00.000 3,064,350.00 3,172,500.00 0.73% 108,150.00 6.125% 08/28/2007 DD 08/29/02SECID:370425SD3 GOLDMAN SACHS GROUP INC SR NT 101.8750 3, 000,0•00.000 3,030,030.00 3,056,250.00 0.70% 26,220.00 4.125% 01/15/2008 DD Ol/13/03SEC ID: 38141GCS1 GNMA GTD REMIC TR 2000-9 100.5910 752,6-86.770 752,686.77 757,135.15 0.17% 4,448.38 FHVAR RT 02/16/2030SEC ID: 3837H4NX9 HOUSEHOLD FIN CORP NT 6.375% 109.5460 1,635,000.000 1,772,820.00 1,791,077.10 0.41% 18,257.10 10/15/2011 DD 10/23/0lSEC ID: 441812JW5 ---------------------------------------------------------------------- 15 Workbench ---- Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGO00lO000 11/30/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base JP MORGAN CHASE & CO SUB NT5. 104.6560 3, 000,0,00.000 3,127,260.00 3,139,680.00 0.72% 12,420.00 750% 01/02/2013 DD ll/25/02SECID:46625HAT7 LEHMAN BROS HLDGS INC6.625% 101.7810 1,000,0·00.000 1,045,590.00 1,017,810.00 0.23% -27,780.00 04/01/2004 DD 03/26/99SEC ID: 524908BZ2 MARSH & MCLENNAN COS INC SR 102.7180 2, 000,0·00.000 1,992,280.00 2,054,360.00 0.47% 62,080.00 NT6.625% 06/15/2004 DD 06/14/99SECID:571748AB8 MORGAN STANLEY NT 3.625% 99.2340 3, 200,0,00.000 3,195,648.00 3,175,488.00 0.73% -20,160.00 04/01/2008 DD 03/06/03SEC ID: 617446HW2 NCNB TEX NATL BK DALIAS TEX 103.9060 2so,o,oo.ooo 260,870.00 259,765.00 0.06% -1,105.00 NT 9.500% 06/01/2004 DD 06/0l/89SECID:628857DJO NATIONAL RURAL UTILS COOP FIN 115.7650 3, 000,0,00.000 3,465,480.00 3,472,950.00 0.80% 7,470.00 7.250% 03/01/2012 DD 03/07 /02SEC ID: 637432CU7 NATIONSBANK CORP SR NTS6.125% 102.8750 627,000.000 646,650.18 645,026.25 0.15% -1,623.93 07/15/2004 DD 07 /23/98SEC ID: 638585BJ7 NORWEST FINL INC NTS7.200% 101.9060 520,000.000 531,538.80 529,911.20 0.12% -1,627.60 04/01/2004 DD 04/07 /97SEC ID: 669383DG3 PACIFICORP SECD MTN #TR 00ll5 104.7340 3,000,000.000 2,950,530.00 3,142,020.00 0.72% 191,490.00 7.300% 10/22/2004 DD 10/22/92SECID:69512EEUS PAINE WEBBER GROUP INC NTS6. 100.0000 500,000.000 519,405.00 500,000.00 0.12% -19,405.00 450% 12/01/2003 DD 12/01/98SECID:695629CE3 PHILIP MORRIS COS INC NTS 7. 101.5930 1,000,000.000 1,052,600.00 1,015,930.00 0.23% -36,670.00 500% 04/01/2004 DD 04/01/97SECID:718154CH8 SBA GTD DEV PARTN 2001-20C 16. 107.8000 3,497,276.280 3,497,276.28 3,770,063.83 0.87% 272,787.55 340% 03/01/2021SEC ID: 83162CLJO SBA GTD PARTN CTFS SBIC-PS O 1 106.9050 2,425,788.580 2,425,788.58 2,593,289.28 0.60% 167,500.70 6.640% 02/10/2011 DD 02/21/0lSEC ID: 831641DD4 16 Workbench ------ Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGOOOlOOOO 11/30/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base UNITED AIRLS PASSTHRU 01-1 C 6. 15.0730 1, 600,0•00.000 1,600,000.00 241,168.00 0.06% -1,358,832.00 831% 03/01/2010 DD 08/22/01SECID:909317BC2 US BANCORP MTN #TR 001196. 102.0620 1, 000,0·00.000 1,046,310.00 1,020,620.00 0.23% -25,690.00 000% 05/15/2004 DD 05/10/99SEC ID: 91159HEY2 U S TREASURY NOTES06.250% 111.1250 20, 000,0•00.000 22,620,312.50 22,225,000.00 5.11% -395,312.50 02/15/2007 DD 02/15/97SEC ID: 9128272J0 US TREASURY INFLATION INDEX 108.5156 16,363,200.000 14,436,173.87 17,756,627.93 4.09% 3,320,454.06 NT 3.375% 01/15/2007 DD 01/15/97SEC ID: 9128272M3 US TREASURY INFLATION INDEX NT 110.7500 3,438,720.000 3,749,689.05 3,808,382.40 0.88% 58,693.35 3.625% 01/15/2008 DD 01/15/98SECID:9128273T7 US TREASURY INFLATION INDEX NT 112.3125 14,678,950.000 16,312,018.79 16,486,295.72 3.79% 174,276.93 3.875% 01/15/2009 DD 01/15/99SECID:9128274Y5 U S TREASURY NOTES05.875% 104.2500 5, 000,0•00.000 5,226,367.19 5,212,500.00 1.20% -13,867.19 11/15/2004 DD 11/15/99SEC ID: 9128275S7 US TREASURY NOTES0S.750% 107.2190 57, 100,0-00.000 62,782,901.47 61,222,049.00 14.09% -1,560,852.47 11/15/2005 DD 11/15/00SEC ID: 9128276N7 US TREASURY NT 3.250% 99.8700 12, 000,0•00.000 11,870,156.25 11,984,400.00 2.76% 114,243.75 08/15/2008 DD 08/15/03SEC ID: 912828BG4 VERIZON GLOBAL FDG CORP 114.5780 3, 000,0-00.000 3,530,490.00 3,437,340.00 0.79% -93,150.00 GLOBAL 7.375% 09/01/2012 DD 08/26/02SECID:92344GAT3 VIRGINIA ELEC & PWR 01 SER AS. 106.6870 1, 750,0·00.000 1,743,840.00 1,867,022.50 0.43% 123,182.50 750% 03/31/2006 DD 03/27/01SECID:927804EN0 TOTAL FIXED INCOME SECURITIES 300,397,610.810 313,556,406.40 316,645,393.41 72.87% 3,088,987.01 TOTAL ASSETS U.S. DOLLAR 418,020,157.960 431,428,613.76 434,517,600.77 100.00% 3,088,987.01 TOTAL ASSETS -BASE: 418,020,157.960 431,428,613.76 434,517,600.77 100.00% 3,088,987.01 17 Workbench OCSD-CONSOLIDATED -OCSGOOOlOOOO Tran Type Description Transaction Detail Reported by Transaction Category 11/3/2003 -11/28/2003 Trade Date Settle Date Reported Date ----- Price Base Shares/Par Cost Base ReportID: EWB009 Base Currency: USD Status: FINAL Amount Base Net Gain/Loss Base ---__________________________________________________________ J RECEIPTS AND DISBURSEMENT TRANSACTIONS CASH/SECURITIES RECEIVED FROM PLAN ADMINISTRATOR U.S. DOLLAR CD RECD PLAN CONTRIBUTIONSEC ID: 11/26/2003 11/26/2003 11/26/2003 NA9123459OCSF07511102: LIQUID OPER- PIMCO CD RECD PLAN CONTRIBUTIONSEC ID: NA9123459OCSF07511102: LIQUID OPER- PIMCO 11/26/2003 TOTAL CASH/SECURITIES RECEIVED FROM PLAN ADMINISTRATOR U.S. DOLLAR: TOTAL CASH/SECURITIES RECEIVED FROM PLAN ADMINISTRATOR BASE: TOTAL RECEIPTS AND DISBURSEMENT TRANSACTIONS BASE: PURCHASES CASH & CASH EQUIVALENTS U.S. DOLLAR B B B B DU PONT DE NEMOUR DISC 12/17 /2003SEC 11/12/2003 ID: 26354BZH8BROKER: CREDIT SUISSE l l / 12/2003 FIRST BOSTON CORP, N YOCSF07511102: l l / 1212003 LlQUID OPER-PlMCO FEDERAL HOME LN BK CONS DISC MAT 02/25/2004SEC ID: 313384TN98ROKER: UBS SECURITIES LLC, NEW YORKOCSF07511102: LlQUto OPER-PIMCO FEDERAL HOME LN BK CONS DISC MAT 05/19/2004SEC ID: 3 13384XA2BROKER: e m GROUP GBL MKTS/SALOMON , NEW YORK.OCSF 07 51 l 102: LIQUID OPER-PIMCO FEDERAL HOME LN MTG CORP DISC MAT 02/ 12/2004SEC ID: 313396SZ7BROKER: UBS SECURITIES LLC, NEW YORKOCSF07522202: LONG TERM OPER- PIMCO 11/26/2003 11/26/2003 11/26/2003 11/19/2003 11/19/2003 11/19/2003 11/12/2003 11/12/2003 11/12/2003 99.9008 99.7321 99.4313 99.7240 0.000 3,000,000.00 3,000,000.00 0.00 0.000 9,000,000.00 9,000,000.00 0.00 0.000 12,000,000.00 12,000,000.00 0.00 0.000 12,000,000.00 12,000,000.00 0.00 0.000 12,000,000.00 12,000,000.00 0.00 1,000,000.000 999,008.33 -999,008.33 0.00 2,000,000.000 1,994,641.11 -1,994,641.11 0.00 2,000,000.000 1,988,625.00 -1,988,625.00 0.00 2,500,000.000 2,493,100.00 -2,493, 100.00 0.00 ------------------------------------------------------------------------------------------------- 1 Workbench ----- Transaction Detail ReportID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOUDATED -OCSGO00lO000 11/3/2003 -11/28/2003 Status: FINAL ---Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B FEDERAL HOME LN MTG CORP DISC MAT 11/28/2003 99.7313 3,000,000.000 2,991,937.50 -2,991,937.50 0.00 02/26/2004SEC ID: 313396TP8BROKER: 11/28/2003 UBS SECURITIES LLC, NEW 11/28/2003 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 11/7/2003 99.5807 2,100,000.000 2,091,194.00 -2,091,194.00 0.00 03/22/2004SEC ID: 313396UQ4BROKER: 11/7/2003 MORGAN STANLEY & CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO l l/7 /2003 B FEDERAL NATL MTG ASSN DISC NTSEC ID: 11/19/2003 99.7295 2,200,000.000 2,194,049.61 -2,194,049.61 0.00 313588TF2BROKER: CREDIT SUISSE FIRST 11/19/2003 BOSTON CORP, N YOCSF07522202: LONG 11/19/2003 TERM OPER-PIMCO B FEDERAL NATL MTG ASSN DISC NTSEC ID: 11/26/2003 99.7503 1,000,000.000 997,503.33 -997,503.33 0.00 313588TF2BROKER: UBS SECURITIES LLC, 11/26/2003 NEW YORKOCSF0751 l 102: LIQUID OPER-11/26/2003 PIMCO B FEDERAL NATL MTG ASSN DISC NTSEC ID: 11/28/2003 99.7551 2,000,000.000 1,995,102.78 -1,995,102.78 0.00 313588TF2BROKER: UBS SECURITIES LLC, 11/28/2003 NEW YORI<OCSF075 11102: UQ{)lD OPER-11/28/2003 PIMCO B FEDERAL NATL MTG ASSN DISCOUNT MAT 11/19/2003 99.4262 2,000,000.000 1,988,523.89 -1,988,523.89 0.00 05/19/2004SEC ID: 313588XA8BROKER: 11/19/2003 MERRlLLLYNCH PIERCE FENNER SMITH INC ll/l9 /2003 NYOCSF07511102: LIQUID OPER-PIMCO B GENERAL ELEC CAP DISC 11 / 19 /2003SEC 11/4/2003 99.9563 500,000.000 499,781.25 -499,781.25 0.00 ID: 36959JYK3BROKER: CREDIT SUISSE 11/4/2003 FIRST BOSTON CORP, N YOCSF075 l l 102: 11/4/2003 LIQUID OPER-PIMCO B US TREASURY BILL DUE 05/06/2004 DD 11/3/2003 99.4820 4,400,000.000 4,377,207.88 -4,377,207 .88 0.00 ll/06/2003SEC ID: 912795PX3BROKER: 11/6/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l l/J/2003 LONG TERM OPER-PIMCO B US TREASURY BILL DUE 05/27/2004 DD 11/26/2003 99.4912 2,300,000.000 2,288,297.35 -2,288,297 .35 0.00 11/28/2003SEC ID: 912795QA2BROKER: 11/28/2003 MORGAN STANLEY & CO INC, 11/26/2003 NYOCSF07511102: LIQUID OPER-PIMCO B US TREASURY BILL DUE 05/27/2004 DD 11/28/2003 99.4872 2,000,000.000 1,989,743.33 -1,989,743.33 0.00 ll/28/2003SEC ID: 912795QA2BR0KER: 11/28/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: l l/2812003 LIQUID OPER-PIMCO 2 Workbench ----• Transaction Detail ReportID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSGO00 10000 11/3/2003 -11/28/2003 Status: FINAL -- Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B CREDIT SUISSE FB REPO O 1.010% 11/3/2003 100.0000 500,000.000 500,000.00 -500,000.00 0.00 11/04/2003 DD 1 l/03/03SEC ID: 11/3/2003 99412E277BROKER: CREDIT SUISSE FIRST 11/3/2003 BOSTON CORP, NYOCSF07511102: LIQUID B fWlf!&'~ 2 REPO O 1. 000% 11 / 14 / 2003 11/13/2003 100.0000 8,700,000.000 8,700,000.00 -8,700,000.00 0.00 DD 11/13/03SEC ID: 99412Q890BROKER: 11/13/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l l / 1312003 LONG TERM OPER-PIMCO B LEHMAN CAT 2 REPO O 1.000% 11/17/2003 11/14/2003 100.0000 8,700,000.000 8,700,000.00 -8, 700,000.00 0.00 DD 11/14/03SECID: 99412S458BROKER: 11/14/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: ll/l4 /2003 LONG TERM OPER-PIMCO B LEHMAN CAT 2 REPO 01.050% 11/18/2003 11/17/2003 100.0000 5,300,000.000 5,300,000.00 -5,300,000.00 0.00 DD 11/ 17 /03SEC ID: 99412T720BROKER: 11/17/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: ll/l712003 LIQUID OPER-PIMCO B CREDIT SUISSE FB REPO 00.980% 11/18/2003 100.0000 2,900,000.000 2,900,000.00 -2,900,000.00 0.00 11/19/2003 DD 11/18/03SEC ID: 11/18/2003 99412U198BROKER: CREDIT SUISSE FIRST 11/18/2003 BOSTON CORP, N YOCSF075 l l 102: LIQUID B fWJH&'~ 2 REPO 00.980% 11/19/2003 11/18/2003 100.0000 2,900,000.000 2,900,000.00 -2,900,000.00 0.00 DD 11/18/03SECID: 99412V329BROKER: 11/18/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: l l/ 1812003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 00.980% 11/20/2003 11/19/2003 100.0000 1,500,000.000 1,500,000.00 -1,500,000.00 0.00 DD 11/19/03SECID: 99412W780BROKER: 11/19/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: l l/l9 /2003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 01.000% 11/21/2003 11/20/2003 100.0000 1,400,000.000 1,400,000.00 -1,400,000.00 0.00 DD 11/20/03SEC ID: 99412Y232BROKER: 11/20/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: l l / 20 / 2003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 00.970% 11/24/2003 11/21/2003 100.0000 1,300,000.000 1,300,000.00 -1,300,000.00 0.00 DD 11/21/03SEC ID: 99412Z486BROKER: 11/21/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: l l/2112003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 01.000% 11/25/2003 11/24/2003 100.0000 1,300,000.000 1,300,000.00 -1,300,000.00 0.00 DD 11/24/03SEC ID: 99413B173BROKER: 11/24/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: l l 12412003 LIQUID OPER-PIMCO 3 Workbench Transaction Detail ReportID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOUDATED -OCSGO00l0000 11/3/2003 -11/28/2003 Status: FINAL --- Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B LEHMAN CAT 2 REPO 00.980% 11/26/2003 11/25/2003 100.0000 1,300,000.000 1,300,000.00 -1,300,000.00 0.00 DD 11/25/03SEC ID: 99413C627BROKER: 11/25/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: ll/2512003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 01.020% 11/28/2003 11/26/2003 100.0000 2,300,000.000 2,300,000.00 -2,300,000.00 0.00 DD 11/26/03SEC ID: 99413E052BROKER: 11/26/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: l l/2612003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 00.980% 11/28/2003 11/26/2003 100.0000 6,700,000.000 6,700,000.00 -6, 700,000.00 0.00 DD l 1/26/03SEC ID: 99413E128BROKER: 11/26/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l l 12612003 LONG TERM OPER-PIMCO B FIRST BOSTON CORP REPO 01.020% 11/28/2003 100.0000 5,000,000.000 5,000,000.00 -5,000,000.00 0.00 12/01/2003 DD ll/28/03SEC ID: 11/28/2003 99413F174BROKER: CREDIT SUISSE FIRST 11/28/2003 BOSTON CORP, N YOCSF0751 l 102: LIQUID B ~rr?Afr2)N coRP REPo 01.020% 11/28/2003 100.0000 4,800,000.000 4,800,000.00 -4,800,000.00 0.00 12/01/2003 DD ll/28/03SEC ID: 11/28/2003 99413Fl74BROKER: CREDIT SUISSE FIRST 11/28/2003 BOSTON CORP, N YOCSF07522202: LONG B :Bf&¥~1hlHMfilh CASH MGMTSEC ID: 11/3/2003 1.0000 63,000.100 63,000.10 -63,000.10 0.00 996085247OCSF07522202: LONG TERM 11/3/2003 OPER-PIMCO 11/3/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 11/4/2003 1.0000 260.850 260.85 -260.85 0.00 996085247OCSF07522202: LONG TERM 11/4/2003 OPER-PIMCO 11/4/2003 B DREYFUS TREASURY CASH MGMTSEC ID; 11/4/2003 1.0000 354.780 354.78 -354.78 0.00 99608524 7OCSF07511102: LIQUID OPER-11/4/2003 PIMCO 11/4/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 11/6/2003 1.0000 8,932.120 8,932.12 -8,932.12 0.00 996085247OCSF07522202: LONG TERM 11/6/2003 OPER-PIMCO 11/6/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 11/10/2003 1.0000 2,006,378.630 2,006,378.63 -2,006,378.63 0.00 996085247OCSF07522202: LONG TERM 11/10/2003 OPER-PIMCO 11/10/2003 4 Workbench Transaction Detail ReportlD: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOUDATED -OCSGO00l0000 11/3/2003 -11/28/2003 Status: FINAL ---Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date· Base Shares/Par Base Base Base B DREYFUS TREASURY CASH MGMTSEC ID: 11/12/2003 1.0000 991.670 991.67 -991.67 0.00 996085247OCSF07511102: LIQUID OPER-11/12/2003 PIMCO 11/12/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 11/14/2003 1.0000 7.280 7.28 -7.28 0.00 996085247OCSF07522202: LONG TERM 11/14/2003 OPER-PIMCO 11/14/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 11/17/2003 1.0000 338,052.200 338,052.20 -338,052.20 0.00 996085247OCSF0751 l 102: LIQUID OPER-11/17/2003 PIMCO 11/17/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 11/17/2003 1.0000 11,149,413.990 11,149,413.99 -11,149,413.99 0.00 996085247OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO 11/17/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 11/19/2003 1.0000 993,413.780 993,413.78 -993,413.78 0.00 996085247OCSF07511102: LIQUID OPER-11/19/2003 PIMCO 11/19/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 11/20/2003 1.0000 128,551.260 128,551.26 -128,551.26 0.00 996085247OCSF07522202: LONG TERM 11/20/2003 OPER-PIMCO 11/20/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 11/21/2003 1.0000 101,106.670 101,106.67 -101,106.67 0.00 996085247OCSF07511102: LIQUID OPER-11/21/2003 PIMCO 11/21/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 11/24/2003 1.0000 105.080 105.08 -105.08 0.00 996085247OCSF07511102: LIQUID OPER-11/24/2003 PIMCO 11/24/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 11/25/2003 1.0000 36.110 36.11 -36.11 0.00 996085247OCSF07511102: LIQUID OPER-11/25/2003 PIMCO 11/25/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 11/25/2003 1.0000 2,915,874.030 2,915,874.03 -2,915,874.03 0.00 996085247OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO 11/25/2003 5 Workbench OCSD-CONSOUDATED-OCSGOOOlOOOO Transaction Detail Reported by Transaction Category 11/3/2003 -11/28/2003 Tran Type Description Trade Date Settle Date Reported Date B B DREYFUS TREASURY CASH MGMTSEC ID: 9960852470CSF07522202: LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 9960852470CSF07511102: LIQUID OPER- PIMCO 11/26/2003 11/26/2003 11/26/2003 11/26/2003 11/26/2003 11/26/2003 TOTAL CASH & CASH EQUIVALENTS U.S. DOLLAR: TOTAL CASH & CASH EQUIVALENTS BASE: FIXED INCOME SECURITIES U.S. DOLLAR B B B B IB B COMMIT TO PUR FNMA SF MTG 6.000% 11/7/2003 12/01/2033 DD l2/01/03SEC ID: 12/11/2003 01F0606C4BROKER: CHASE/GREENWICH CAP, NEW YORKOCSF07522202: LONG TERM l l /7 /2003 8 ~-F'1ffi>UR FNMA SF MTG 6.000% 11/7/2003 12/01/2033 DD 12/01/03SEC ID: 12/11/2003 01F0606C4BROKER: GOLDMAN SACHS & ll/7/2003 CO, NYOCSF07522202: LONG TERM OPER- ~IT TO PUR FNMA SF MTG 6.000% 11/10/2003 12/01/2033 DD 12/01/03SEC ID: 12/11/2003 01F0606C4BROKER: CREDIT SUISSE FIRST l l / l0/2003 BOSTON CORP, N YOCSF07522202: LONG X§~P&1R~ NA MTN SR00043 7.920% 07/13/2004 DD 07 /13/94SEC ID: 045906BU7BROKER: ADVEST CO, HARTFORDOCSF0751 l 102: LIQUID OPER- K_~'efCIATES CORP NA MTN SR00043 7.920% 07/13/2004 DD 07 /13/94SEC ID: 045906BU7BROKER: ADVEST CO, HARTFORDOCSF075 l 1102: LIQUID OPER- 11/17/2003 11/20/2003 11/17/2003 11/17/2003 11/20/2003 11/17/2003 ~EX NATL BK DALIAS TEX NT 9.5000/o 11/17/2003 06/01/2004 DD 06/0 1/89~EC ID: 11/20/2003 628857DJOBROKER: ADVEST CO, HARTFORDOCSF07511 102: LIQUID OPER-l l /l7 /2003 PIMCO Price Base 1.0000 Shares/Par 6,600,000.000 1.0000 16,302,532.060 124,209,010.610 124,209,010.610 102.0000 500,000.000 102.0625 1,000,000.000 102.2188 1,000,000.000 104.1990 100,000.000 104.1990 0.000 104.3480 250,000.000 6 Cost Base 6,600,000.00 16,302,532.06 124,097,725.97 124,097,725.97 510,000.00 1,020,625.00 1,022,187.50 104,199.00 0.00 260,870.00 ReportID: EWB009 Base Currency: USD Status: FINAL Amount Base -6,600,000.00 -16,302,532.06 -124,097,725.97 -124,097,725.97 -510,000.00 -1,020,625.00 -1,022,187.50 -104,199.00 -418.00 -260,870.00 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 -------------------------------------------------~---- OCSD-CONSOUDATED -OCSGOOOlOOOO Transaction Detail Reported by Transaction Category 11/3/2003 -11/28/2003 ~-------------------------------------------- Tran Trade Date Settle Date Reported Date Type Description IB B IB B IB B NCNB TEX NATL BK DALIAS TEX NT 9.500% 11/17/2003 06/01/2004 DD 06/01/89S~C ID: 11/20/2003 628857DJ0BROKER: ADVEST eo, HARTFORDOCSF07511102:. LIQl:JID OPER-l l / 17 /2003 ~SBANK CORP SR NTS 6.125% 11/17/2003 07/15/2004 DD 07/23/98SECID: 11/20/2003 638585BJ7BROKER: ADVEST CO, l l / 1712003 HARTF0RDOCSF075 l l l0-2: •QUID OPER- f:r..M%NSBANK CORP SR NTS 6.125% 11/17/2003 07/15/2004 DD 07 /23/98SEC ID: 11/20/2003 638585BJ7BROKER: ADVEST CO, HARWORDOCSF0751 I 102: LlQUTD OPER-l l / 17 /2003 ~ST FINL INC NTS 7.200% 04/01/2004 11/17/2003 DD 04/07 /97SEC ID: 669383DG3BROKER: 11/17/2003 ADVEST CO, HARTFORDOCSF07511102: l l / 1712003 LIQUID OPER-PIMCO NORWEST FINL INC NTS 7.200% 04/01/2004 11/17/2003 DD 04/07/97SEC ID: 669383DG3BROKER: 11/17/2003 AD VEST CO, HARTFORDOCSF07511102: l l / 1712003 LrQUID OPER-PIMCO US TREASURY NOTES 05.875% 11/15/2004 DD 11 / 15/99SEC ID: 9128'.275S?BROKER: GQLDMAN SACHS & CO, NYOCSF07511102: LIQUID OPER-PIMCO 11/19/2003 11/19/2003 11/19/2003 Price Base 104.3480 103.1340 103.1340 102.2190 102.2190 104.5273 IB US TREASURY NOTES 05.875% 11/15/2004 11/19/2003 104.5273 DD 11/.15/99S~C ID: 9l28275S7BROKER: 11/19/2003 GOLDMAN SACBS & CO, NYOCSF075U102: ll/l9 /2003 LIQUID OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: TOTAL FIXED INCOME SECURITIES BASE: Shares/Par 0.000 627,000.000 0.000 520,000.000 0.000 5,000,000.000 0.000 8,997,000.000 8,997,000.000 Cost Base 0.00 646,650.18 0.00 531,538.80 0.00 5,226,367.19 0.00 9,322,437.67 9,322,437.67 TOTAL PURCHASES BASE: 133,206,010.610 133,420,163.64 SALES CASH & CASH EQUIVALENTS U.S. DOLLAR 7 Report ID: EWB009 Base Currency: USD Status: FINAL Amount Base -11,149.31 -646,650.18 -13,334.64 -531,538.80 -4.784.00 -5,226,367.19 -3,228.02 -9,355,351.64 -9,355,351.64 -133,453,077 .61 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 ReportID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOUDATED -OCSGO00l0000 11/3/2003 -11/28/2003 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 HOME LN MTG CORP DISC MAT 11/18/2003 99.7214 -3, 100,000.000 -3,091,364.78 3,091,364.78 0.00 l l/26/2003SEC ID: 313396PT4BROKER: 11/18/2003 UBS SECURITIES LLC, NEW 11/18/2003 YORKOCSF07522202: LONG TERM OPER- IS ~L HOME LN MTG CORP DISC MAT 11/18/2003 99.7214 0.000 0.00 7,960.11 0.00 11/26/2003SEC ID: 313396PT4BROKER: 11/18/2003 UBS SECURITIES LLC, NEW 11/18/2003 YORKOCSF07522202: LONG TERM OPER- s ~L NATL MTG ASSN DISCOUNT MAT 11/18/2003 99.7334 -11,300,000.000 -11,269,873.65 11,269,873.65 0.00 11/ 19/2003SEC ID: 313588PL3BROKER: 11/18/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l l/ 1812003 LONG TERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 11/18/2003 99.7334 0.000 0.00 29,846.99 0.00 11/ 19/2003SEC ID: 313588PL3BROKER: 11/18/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l l / 1812003 LONG TERM OPER-PIMCO s FEDERAL NATL MTG ASSN DISCOUNT MAT 11/3/2003 99.5530 -4,400,000.000 -4,380,332.00 4,380,332.00 0.00 02/19/2004SEC ID: 313588TG0BROKER: 11/6/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l l/3 /2003 LONG TERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 11/3/2003 99.5530 0 .000 0.00 5,808.00 0.00 02/19/2004SEC ID: 313588TG0BROKER: 11/6/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l l/3/2003 LONG TERM OPER-PIMCO s CREDIT SUISSE FB REPO 0 1.010% 11/4/2003 100.0000 -500,000.000 -500,000.00 500,000.00 0.00 11/04/2003 DD ll/03/03SEC ID: 11/4/2003 99412E277BROKER: CREDIT SUISSE FIRST 11/4/2003 BOSTON CORP, N YOCSF07511102: LIQUID IS @ilB1¥1~sE FB REPO 01.010% 11/4/2003 100.0000 0.000 0.00 14.03 0.00 11/04/2003 DD ll/03/03SEC ID: 11/4/2003 99412E277BROKER: CREDIT SUISSE FIRST 11/4/2003 BOSTON CORP, N YOCSF07511102: LIQUID s f?llHixn15ft 2 REPO 01.000% 11/14/2003 11/14/2003 100.0000 -8, 700,000.000 -8, 700,000.00 8,700,000.00 0.00 DD ll/13/03SEC ID: 99412Q890BROKER: 11/14/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l l / 1412003 LONG TERM OPER-PIMCO IS LEHMAN CAT 2 REPO 01.000% 11/14/2003 11/14/2003 100.0000 0.000 0.00 241.67 0.00 DD 11/13/03SEC ID: 99412Q890BROKER: 11/14/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l l / 1412003 LONG TERM OPER-PIMCO 8 Workbench --- Transaction Detail ReportID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000 10000 11/3/2003 -11/28/2003 Status: FINAL ---------Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base s LEHMAN CAT 2 REPO 01.000% 11/17/2003 11/17/2003 100.0000 -8,700,000.000 -8,700,000.00 8,700,000.00 0 .00 DD 11/ 14/03SEC ID: 99412S458BROKER: 11/17/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l l / 1712003 LONG TERM OPER-PIMCO IS LEHMAN CAT 2 REPO 01.000% 11/17/2003 11/17/2003 100.0000 0.000 0.00 725.00 0.00 DD 11/14/03SEC ID: 99412S458BROKER: 11/17/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l l/l712003 LONG TERM OPER-PIMCO s LEHMAN CAT 2 REPO 01.050% 11/18/2003 11/18/2003 100.0000 -5,300,000.000 -5,300,000.00 5,300,000.00 0.00 DD 11/17/03SEC ID: 99412T720BROKER: 11/18/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: ll/l8/2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.050% 11/18/2003 11/18/2003 100.0000 0.000 0.00 154.58 0.00 DD 11/17 /03SEC ID: 99412T720BROKER: 11/18/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: l l/l8 /2003 LIQUID OPER-PIMCO s CREDIT SUISSE FB REPO 00.980% 11/19/2003 100.0000 -2,900,000.000 -2,900,000.00 2,900,000.00 0.00 11/19/2003 DD 11/18/03SEC ID: 11/19/2003 99412U198BROKER: CREDIT SUISSE FIRST BOSTON CORP, N YOCSF07511102: LIQUID 11/19/2003 IS e~ll:B1¥I~sE FB REPO 00.980% 11/19/2003 100.0000 0.000 0.00 78.94 0.00 11/19/2003 DD 11/18/03SEC ID: 11/19/2003 99412Ul98BROKER: CREDIT SUISSE FIRST 11/19/2003 BOSTON CORP, NYOCSF07511102: LIQUID s £l!'jH~rA1-M9fr 2 REPO 00. 980% 11 / 19 / 2003 11/19/2003 100.0000 -2,900,000.000 -2,900,000.00 2,900,000.00 0.00 DD 11/18/03SEC ID: 99412V329BROKER: 11/19/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: l l/l9 /2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 00. 980% 11/19/2003 11/19/2003 100.0000 0.000 0.00 78.94 0.00 DD 11/18/03SEC ID: 99412V329BROKER: 11/19/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: ll/l9 /2003 LIQUID OPER-PIMCO s LEHMAN CAT 2 REPO 00.980% 11/20/2003 11/20/2003 100.0000 -1,500,000.000 -1,500,000.00 1,500,000.00 0.00 DD 11/19/03SEC ID: 99412W780BROKER: 11/20/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: ll/20/2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 00.980% 11/20/2003 11/20/2003 100.0000 0.000 0.00 40.83 0.00 DD 11/19/03SEC ID: 99412W780BROKER: 11/20/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: l l/2012003 LIQUID OPER-PIMCO 9 Workbench Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOUDATED-OCSGO00l0000 11/3/2003 -11/28/2003 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base s LEHMAN CAT 2 REPO 01.000% 11/21/2003 11/21/2003 100.0000 -1,400,000.000 -1,400,000.00 1,400,000.00 0.00 DD 11/20/03SEC ID: 99412Y232BROKER: 11/21/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: ll/2 l/2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.000% 11/21/2003 11/21/2003 100.0000 0.000 0.00 38.89 0.00 DD 11/20/03SEC ID: 99412Y232BROKER: 11/21/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: l l/2112003 LIQUID OPER-PIMCO s LEHMAN CAT 2 REPO 00.970% 11/24/2003 11/24/2003 100.0000 -1,300,000.000 -1,300,000.00 1,300,000.00 0.00 DD 11/21/03SEC ID: 99412Z486BROKER: 11/24/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: ll/2412003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 00.970% 11/24/2003 11/24/2003 100.0000 0.000 0.00 105.08 0.00 DD 11/21/03SEC ID: 99412Z486BROKER: 11/24/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: l 12412003 LIQUID OPER-PIMCO l s LEHMAN CAT 2 REPO 01.000% 11/25/2003 11/25/2003 100.0000 -1,300,000.000 -1,300,000.00 1,300,000.00 0.00 DD ll/24/03SECID: 99413B173BROKER: 11/25/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: ll/2512003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.000% 11/25/2003 11/25/2003 100.0000 0.000 0.00 36.11 0.00 DD 11/24/03SEC ID: 99413B173BROKER: 11/25/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: ll/2512003 LIQUID OPER-PIMCO s LEHMAN CAT 2 REPO 00.980% 11/26/2003 11/26/2003 100.0000 -1 ,300,000.000 -1,300,000.00 1,300,000.00 0.00 DD 11/25/03SEC ID: 99413C627BROKER: 11/26/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: ll/2612003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 00.980% 11/26/2003 11/26/2003 100.0000 0.000 0.00 35.39 0.00 DD 11/25/03SEC ID: 99413C627BROKER: 11/26/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: l l/2612003 LIQUID OPER-PIMCO s LEHMAN CAT 2 REPO 01.020% 11/28/2003 11/28/2003 100.0000 -2,300,000.000 -2,300,000.00 2,300,000.00 0.00 DD 11 /26/03SEC ID: 99413E052BROKER: 11/28/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: l l/2812003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.020% 11/28/2003 11/28/2003 100.0000 0.000 0.00 130.33 0.00 DD 11/26/03SEC ID: 99413E052BROKER: 11/28/2003 LEHMAN GOVT SECS INC, NYOCSF07511102: 1112812003 LIQUID OPER-PIMCO 10 Workbench Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOUDATED-OCSG000l0000 11/3/2003 -11/28/2003 Status: FINAL -Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base s LEHMAN CAT 2 REPO 00.980% 11/28/2003 11/28/2003 100.0000 -6,700,000.000 -6,700,000.00 6,700,000.00 0.00 DD 11/26/03SEC ID: 99413E128BROKER: 11/28/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l l 12812003 LONG TERM OPER-PIMCO IS LEHMAN CAT 2 REPO 00.980% 11/28/2003 11/28/2003 100.0000 0.000 0.00 364.78 0.00 DD 11/26/03SEC ID: 99413E128BROKER: 11/28/2003 LEHMAN GOVT SECS INC, NYOCSF07522202: l l/2812003 LONG TERM OPER-PIMCO s DREYFUS TREASURY CASH MGMTSEC ID: 11/3/2003 1.0000 -36,218.750 -36,218.75 36,218.75 0.00 99608524 7OCSF07511102: LIQUID OPER-11/3/2003 PIMCO 11/3/2003 s DREYFUS TREASURY CASH MGMTSEC ID: 11/7/2003 1.0000 -91,194.000 -91,194.00 91,194.00 0.00 996085247OCSF07522202: LONG TERM 11/7/2003 OPER-PIMCO 11/7/2003 s DREYFUS TREASURY CASH MGMTSEC ID: 11/12/2003 1.0000 -1,893,100.000 -1,893,100.00 1,893,100.00 0.00 996085247OCSF07522202: LONG TERM 11/12/2003 OPER-PIMCO 11/12/2003 s DREYFUS TREASURY CASH MGMTSEC ID: 11/13/2003 1.0000 -146,636.340 -146,636.34 146,636.34 0.00 996085247OCSF07522202: LONG TERM 11/13/2003 OPER-PIMCO 11/13/2003 s DREYFUS TREASURY CASH MGMTSEC ID: 11/18/2003 1.0000 -499,845.420 -499,845.42 499,845.42 0.00 996085247OCSF07511102: LIQUID OPER-11/18/2003 PIMCO 11/18/2003 s DREYFUS TREASURY CASH MGMTSEC ID: 11/18/2003 1.0000 -8,899,754.780 -8,899,754.78 8,899,754.78 0.00 996085247OCSF07522202: LONG TERM 11/18/2003 OPER-PIMCO 11/18/2003 s DREYFUS TREASURY CASH MGMTSEC ID: 11/19/2003 1.0000 -2,233,582.950 -2,233,582.95 2,233,582.95 0.00 996085247OCSF07522202: LONG TERM 11/19/2003 OPER-PIMCO 11/19/2003 s DREYFUS TREASURY CASH MGMTSEC ID: 11/20/2003 1.0000 -936,580.300 -936,580.30 936,580.30 0.00 996085247OCSF07511102: LIQUID OPER-11/20/2003 PIMCO 11/20/2003 11 Workbench OCSD-CONSOLIDATED -OCSGOOOlOOOO Transaction Detail Reported by Transaction Category 11/3/2003 -11/28/2003 s s s s Tran Type Description Trade Date Settle Date Reported Date DREYFUS TREASURY CASH MGMTSEC ID: 9960852470CSF0751 l 102: LIQUID OPER- PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 9960852470CSF07522202: LONG TERM OPER-PWCO 11/28/2003 11/28/2003 11/28/2003 11/28/2003 11/28/2003 11/28/2003 TOTAL CASH & CASH EQUIVALENTS U.S. DOLLAR: TOTAL CASH & CASH EQUIVALENTS BASE: FIXED INCOME SECURITIES U.S. DOLLAR COMMIT TO PUR FNMA SF MTG 6.000% 11/7/2003 11/01/2033 DD ll/01/03SEC TD: 11/13/2003 01F06068 6BROKER: CHASE/GREENWICH CAP, NEW YORKOCSF07522202: LONG TERM l l/7 /2003 FW~-PIMS'er,#0555640 6.000% 11/10/2003 07 /01/203_3 DD 06/01/03SEC ID: 11/13/2003 3 l 385XHR1 BROKER: CREDIT SUISSE FIRST l l / 1012003 BOSTON CORP, N YOCSF07522202: LONG IS ffi~ 0 fQ-E%Ss1s640 6.000% 11/10/2003 s IS s 07/01/2033 DD 06/0l/03SEC TD: 11/13/2003 31385XHR1BROKER: CREDTI' SUISSE FIRST BOSTON CORP, N YOCSF07522202: WNG l l/l0/2003 ffi~ 0 fQ-E%9'i496 l 6 .000% 07/01/2033 DD 06/01 /03SEC ID: 31402CMJ8BROKER: GOLDMAN SACHS & CO, NYOCSF07522202: LONG TERM OPER- ~ POOL #0724961 6.000% 11/7/2003 11/13/2003 11/7/2003 11/7/2003 07/01/2033 DD 06/01/03SEC ID: 11/13/2003 31402CMJ8BROKER: GOLDMAN SACHS & ll/7 /2003 CO, NYOCSF07522202: LONG TERM OPER- ~ POOL #0734231 6 .000% 06/01/2033 DD 07 /Ol/03SEC ID: 31402NVY1BROKER: GOLDMAN SACHS & CO, NYOCSF07522202: LONG TERM OPER- PIMCO 11/7/2003 11/13/2003 11/7/2003 Price Base 1.0000 1.0000 102.3516 102.6016 102.6016 102.4141 102.4141 102.4141 Shares/Par -16,259,591.740 -6,581,554.030 -101,178,058.310 -101,178,058.310 -500,000.000 -810,823.260 0.000 -47,028.730 0.000 -902,969.330 12 Cost Base -16,259,591.74 -6,581,554.03 -101,119,628.74 -101,119,628. 74 -511,640.63 -843,256.19 0.00 -48,175.06 0.00 -924,979.21 ReportID: EWB009 Base Currency: USD Status: FINAL Amount Base 16,259,591.74 6,581,554.03 101,165,288.41 101,165,288.41 511,757.81 831,917.33 1,621.65 48,164.03 94.06 924,767.57 Net Gain/Loss Base 0 .00 0.00 o.oo 0.00 117.18 -11,338.86 0.00 -11.03 0.00 -211.64 Workbench ----------. --------------------------------------------------~ OCSD-CONSOUDATED -OCSGO00l0000 Transaction Detail Reported by Transaction Category 11/3/2003 -11/28/2003 Tran Trade Date Settle Date Reported Date Type Description IS s 1S s IS s IS s IS s FNMA POOL #0734231 6.000% 11/7/2003 06/0 1/2033 DD 07 /01/03SEC TD : 11/13/2003 3}402NVY-1BROKER: GOLDMAN SACHS & CO, NYOCSF07522202: LONG TERM OPER-l l/7 /2003 ~ POOL #07 49530 6.000% 11/7/2003 06/01/2033 DD l0/0 1/03SEC ID: 11/13/2003 31403HVX5BROKER, GOLDMA N SACHS & CO, NYOCSF07522202, LONG TERM OPER-l l /7 /2003 ~ POOL #0749530 6.000% 11/7/2003 06/01/2033 DD 10/0l/03SEC ID: 11/13/2003 31403HVX5BROKER: GOLDMAN SACHS & l l/7/2003 CO, NYOCSF07522202~ LONG TERM OPER- F~TR CR CO GLOBAL LANDMARK 11/7/2003 6 ,700% 07/16/2004 DD 07 /16/99SEC ID: 11/13/2003 345397SJ3BROKER: Bt\RCLAYS CAPITAL INC, .NEW YORKOCSP07522202: LONG TERM l l /7 /2003 ~8KB-~Mf8R co GLOBAL LANDMARK 11/7/2003 6.700% 07/16/2004 DD 07 / 16/99SEC ID-11/13/2003 34S397SJ3BROKER: BARCLAYS CAPITAL me, NEW YORKOCSF07522202! LONG TERM 11/712003 EfrlPMnWiPINc DEB SER A 6.000% 11/7/2003 01/15/2004 DD 01/ 15/94SEC ID: 11/13/2003 362337AD9BROKER: Cl'f!GROUP GBL MKTS/SALOMON, NEW YORKGCSF07522202: l l/7 /2003 ffR!~~ W@Bi'~j A 6.000% 11/7/2003 01/15/2004 DD Ol/15/94SECID: 11/13/2003 362337 AD9BROKER: CITIGROUP GBL MTCTS/SALOMON, NEW YORKOCSF07522202: l l /7 /2003 p~fL<il,Tj8tAfr!'~s¥14E9.!Ts 7.500% 11/7/2003 04/01/2004 DD 04/01/97S'EC ID: 11/13/2003 718154CH8B ROKER: BARCLAYS CAPITAL lNC, NEW YORKOCSF07522202: LONG TERM l l /7 /2003 ·AAfiW~s cos INC NTS 7.500% 11;1 ;2003 04/0 1/2004 DD 04/0l /97SEC m: 11/13/2003 718154CH8BROKER: BARCLAYS CAPffAL INC, NEW YORI(OCSF07522202: LONG TERM l l /7 /2003 ~~ffE:c & PWR O 1 SER A 5. 750% 11/5/2003 03/31/2006 DD 03/27 /OlSEC ID: 11/10/2003 927804ENOBROKER: LEHMAN GOVT SECS l l/5/2003 INC, NYOCSF07522202: LONG TERM OPER- PIMCO Price Base 102.4141 102.4141 102.4141 102.8320 102.8320 100.8220 100.8220 101.9000 101.9000 107.1340 Shares/Par 0.000 -50,001.690 0.000 -500,000.000 0.000 -3,000,000.000 0.000 -4,000,000.000 0.000 -1,750,000.000 13 Cost Base 0.00 -51,220.48 0.00 -499,180.00 0.00 -3,063,750.00 0.00 -4,210,400.00 0.00 -1,743,840.00 ReportID: EWB009 Base Currency: USD Status: FINAL Amount Base 1,805.94 51,208.76 100.00 514,160.00 10,887.50 3 ,024,660.00 59,000.00 4,076,000.00 35,000.00 1,874,845.00 Net Gain/Loss Base 0.00 -11.72 0.00 14,980.00 0.00 -39,090.00 0 .00 -134,400.00 0.00 131,005.00 Workbench -----------------------------------------------, OCSD-CONSOUDATED -OCSG000 10000 Transaction Detail Reported by Transaction Category 11/3/2003 -11/28/2003 Report ID: EWB009 Base Currency: USD Status: FINAL ----------------------------------------------------' Tran Type Description Trade Date Settle Date Reported Date Price Base Shares/Par IS VIRGINIA ELEC & PWR 01 SER A 5.750% 11/5/2003 107.1340 0.000 03/31/2006 DD 03/27 /OlSEC ID: 11/10/2003 927804EN0BROKER: LEHMAN GOVT SECS INC, NYOCSF07522202: LONG TERM OPER-l l/S/2003 PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: -11,56o,823.0l0 TOTAL FIXED INCOME SECURITIES BASE: PRINCIPAL PAYMENTS FIXED INCOME SECURITIES U.S. DOLLAR PD GNMA GTD REMIC TR 2000-9 FH VAR RT 02/16/2030SEC ID: 3837H4NX9OCSF07522202: LONG TERM OPER-PIMCO MATURITIES CASH & CASH EQUIVALENTS U.S. DOLLAR MT MT MT MT FEDERAL HOME LN BK CONS DISC N MAT 11/07 /2003SEC ID: 313384NY1OCSF07522202: LONG TERM OPER-PIMCO FEDERAL HOME LN BKS CONS DISC MAT ll/19/2003SEC ID: 313384PL7OCSF07511102: LIQUID OPER- PIMCO FEDERAL HOME LN BK CONS DISC N MAT 11/26/2003SEC ID: 313384PT0OCSF07511102: LIQUID OPER- PIMCO FEDERAL HOME LN MTG CORP DISC MAT 11/26/2003SEC ID: 313396PT4OCSF07522202: LONG TERM OPER-PIMCO TOTAL SALES BASE: 11/16/2003 11/16/2003 11/16/2003 11/7/2003 11/7/2003 11/7/2003 11/19/2003 11/19/2003 11/19/2003 11/26/2003 11/26/2003 11/26/2003 11/26/2003 11/26/2003 11/26/2003 -11,560,823.010 -112,738,881.320 100.0000 -38,667.380 100.0000 -2,000,000.000 100.0000 -3,100,000.000 100.0000 -1,600,000.000 100.0000 -6,600,000.000 Cost Base 0.00 -11,896,441.57 -11,896,441.57 -113,016,070.31 -38,667.38 -1,988,663.33 -3,093,442.53 -1,598,743.11 -6,581,615.33 Amount Base 11,180.56 11,977,170.21 11,977,170.21 113,142,458.62 38,667.38 1,988,663.33 3,093,442.53 1,598,743.11 6,581,615.33 Net Gain/Loss Base 0.00 -38,961.07 -38,961.07 -38,961.07 0.00 0.00 0.00 0.00 0.00 ----------------------------------------·--------------------------------------------------- 14 Workbench OCSD-CONSOLIDA TED -OCSGOOO 10000 Transaction Detail Reported by Transaction Category 11/3/2003 -11/28/2003 Tran Trade Date Settle Date Reported Date Type Description MT MT MT FEDERAL HOME LN MTG CORP DISC MAT 11/26/2003SEC ID: 313396PT4OCSF07511102: LIQUID OPER- PIMCO FEDERAL NATL MTG ASSN DISC MAT 11/ 12/2003SEC ID: 313588PD10CSF07511102: LIQUID OPER- PIMCO FEDERAL NATL MTG ASSN DISCOUNT MAT ll/19/2003SEC ID: 313588PL3OCSF07511102: LIQUID OPER- PIMCO 11/26/2003 11/26/2003 11/26/2003 11/12/2003 11/12/2003 11/12/2003 11/19/2003 11/19/2003 11/19/2003 Price Base 100.0000 100.0000 100.0000 Shares/Par -2,400,000.000 -1,000,000.000 -2,300,000.000 MT GENERALELECCAPDISC 11/12/2003SEC 11/12/2003 100.0000 -600,000.000 ID: 36959JYC10CSF07522202: LONG TERM 11/12/2003 OPER-PIMCO ll/12/2003 MT GENERALELECCAPDISC 11/19/2003SEC 11/19/2003 100.0000 -500,000.000 ID: 36959JYK3OCSF07511102: LIQUID OPER-11/19/2003 PIM CO 11/19/2003 TOTAL CASH & CASH EQUIVALENTS U.S. DOLLAR: -20,100,000.000 TOTAL CASH & CASH EQUIVALENTS BASE: FIXED INCOME SECURITIES U.S. DOLLAR MT US TREASURY BONDS 11.875% 11/15/2003 11/15/2003 100.0000 DD 10/05/83SEC ID: 11/15/2003 912810DG0OCSf07511102: LIQUID OPER-ll/l5/2003 PIMCO TOTAL MATURITIES BASE: INTEREST CASH & CASH EQUIVALENTS U.S. DOLLAR IT FEDERAL HOME LN BK CONS DISC N MAT 11/07 /2003SEC ID: 313384NY1OCSF07522202: LONG TERM OPER-PIMCO 11/7/2003 11/7/2003 11/7/2003 -20, 100,000.000 -5,800,000.000 -25,900,000.000 2,000,000.000 15 Cost Base -2,393,314.67 -994,677.08 -2,294,216.46 -597,974.33 -499,781.25 -20,042,428 .09 -20,042,428.09 -6,251,984.38 -26,294,412.47 11,336.67 ReportID: EWB009 Base Currency: USD Status: FINAL Amount Base 2,393,314.67 994,677.08 2,294,216.46 597,974.33 499,781.25 20,042,428.09 20,042,428.09 5,800,000.00 25,842,428.09 11,336.67 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -451,984.38 -451,984.38 0.00 Workbench -------- Transaction Detail ReportID: EWB009 Reported by Transaction Category Base Currency: USD OCS~CONSOUDATED -OCSGO00lO000 11/3/2003 -11/28/2003 Status: FINAL ---------~ Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT FEDERAL HOME LN BKS CONS DISC MAT 11/19/2003 3,100,000.000 6,557.47 6,557.47 0.00 11/19/2003SEC ID: 11/19/2003 313384PL7OCSF07511102: LIQUID OPER-11/19/2003 PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 11/26/2003 1,600,000.000 1,256.89 1,256.89 0.00 l 1/26/2003SEC ID: 11/26/2003 313384PT0OCSF07511102: LIQUID OPER-11/26/2003 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 11/26/2003 2,400,000.000 6,685.33 6,685.33 0.00 11/26/2003SEC ID: 11/26/2003 313396PT4OCSF07511102: LIQUID OPER-11/26/2003 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 11/26/2003 6,600,000.000 18,384.67 18,384.67 0.00 11/26/2003SEC ID : 11/26/2003 313396PT4OCSF07522202: LONG TERM 11/26/2003 OPER-PIMCO IT FEDERAL NATL MTG ASSN DISC MAT 11/12/2003 1,000,000.000 5,322.92 5,322.92 0.00 11/ 12/2003SEC ID: 11/12/2003 313588PDIOCSF07511102: LIQUID OPER-11/12/2003 PIMCO IT FEDERAL NATL MTG ASSN DISCOUNT MAT 11/19/2003 2,300,000.000 5,783.54 5,783.54 0.00 11/19/2003SEC ID: 11/19/2003 313588PL3OCSF07511102: LIQUID OPER-11/19/2003 PIMCO IT GENERAL ELEC CAP DISC 11/ 12/2003SEC 11/12/2003 600,000.000 2,025.67 2,025.67 0.00 ID: 36959JYC1OCSF07522202: LONG TERM 11/12/2003 OPER-PIMCO 11/12/2003 IT GENERAL ELEC CAP DISC 11 / 19 /2003SEC 11/19/2003 500,000.000 218.75 218.75 0.00 ID: 36959JYK3OCSF07511102: LIQUID OPER-11/19/2003 PIMCO 11/19/2003 cw SHORT TERM FDS INT ADJ NET OF 11/28/2003 0.000 -473.35 -473.35 0.00 OVERNIGHT INTERESTSEC ID: 11/28/2003 990000PJ4OCSF07522202: LONG TERM 11/28/2003 OPER-PIMCO IT DREYFUS TREASURY CASH MGMTSEC ID: 11/4/2003 0.000 260.85 260.85 0.00 996085247OCSF07522202: LONG TERM 11/1/2003 OPER-PIMCO 11/4/2003 16 Workbench OCSD-CONSOLIDATED -OCSGO00 10000 Transaction Detail Reported by Transaction Category 11/3/2003 -11/28/2003 Tran Trade Date Settle Date Reported Date Type Description IT IT DREYFUS TREASURY CASH MGMTSEC ID: 99608524 7OCSF07511102: LIQUID OPER- PIMCO BSDT-LATE MONEY DEPOSIT ACCTSEC ID: 996087094OCSF07522202: LONG TERM OPER-PJMCO 11/4/2003 11/1/2003 11/4/2003 11/3/2003 11/1/2003 11/3/2003 ---- TOTAL CASH & CASH EQUIVALENTS U.S. DOLLAR: TOTAL CASH & CASH EQUIVALENTS BASE: FIXED INCOME SECURITIES U.S. DOLLAR IT IT IT IT IT IT ALLSTATE CORP SR NT 7.875% 05/01/2005 11/3/2003 DD 05/01/00SEC ID: 11/1/2003 020002ALSOCSF07522202: LONG TERM l l/3/2003 OPER-PIMCO BEAR STEARNS MTN# TR 00459 VAR RT 12/01/2003 DD 08/ 17 /0lSEC ID: 073928VC4OCSF07522202: LONG TERM OPER-PJMCO FHLMC GROUP #G4-0353 7.500% 10/01/2004 DD 03/01/99SEC ID: 3128DBMA2OCSF07522202: LONG TERM OPER-PIMCO 11/18/2003 11/18/2003 11/18/2003 11/17/2003 11/1/2003 11/17/2003 FHLMC MULTICLASS MTG SER E3 A VAR RT 11/18/2003 08/15/2032 DD 12/01/97SEC ID: 10/1/2003 3133TCE95OCSF07522202: LONG TERM ll/l8/2003 OPER-PIMCO FHLMC MULTICLASS MTG SER E3 A VAR RT 11/18/2003 08/15/2032 DD i2/01/97SEC ID: 10/1/2003 3133TCE9SOCSF07522202: LONG TERM l l / 1812003 OPER-.P!MCO FHLMC MULTICLASS CTF SER 1620Z 6.000% 11/18/2003 11/15/2023 DD 11/01/93SEC ID: 11/1/2003 3 133Tl 7 A4OCSF07522202: LONG TERM l l/ 1812003 OPER~PIMCO Price Base Shares/Par 0.000 0.000 20,100,000.000 20,100,000.000 1,600,000.000 0.000 16,710.360 35,504.400 0.750 14,935.350 17 Cost Base 122.00 0.10 57,481.51 57,481.51 63,000.00 3,230.50 600.08 3,981.69 0.75 14,935.35 ReportID: EWB009 Base Currency: USD Status: FINAL Amount Base 122.00 0.10 57,481.51 57,481.51 63,000.00 3,230.50 600.08 3,981.69 0.75 14,935.35 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 -OCSGO00l0000 11/3/2003 -11/28/2003 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT FHLMC GROUP #78-6064 6.384% 11/17/2003 3,388.490 277.57 277.57 0.00 01/01/2028 DD 12/0l/97SEC ID: 10/1/2003 31348SWZ3OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT FNMA POOL #0254510 5.000% 11/25/2003 18,237.070 3,655.21 3,655.21 0.00 11/01/2017 DD 10/01/02SEC ID: 11/1/2003 31371KVB4OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0254631 5.000% 11/25/2003 3,035.710 767.41 767.41 0.00 02/01/2018 DD 01/01/03SEC ID: 11/1/2003 31371KY47OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0254760 5.000% 11/25/2003 2,336.860 689.10 689.10 0.00 06/01/2018 DD 05/01/03SEC ID: 11/1/2003 31371K5V9OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0254866 5.000% 11/25/2003 554.250 297.31 297.31 0.00 09/01/2018 DD 08/0l/03SEC ID: 11/1/2003 31371LCB3OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0323980 6.000% 11/25/2003 11,133.260 1,152.35 1,152.35 0.00 04/01/2014 DD 09/01/99SEC ID: 11/1/2003 31374T2M0OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0357328 5.000% 11/25/2003 940.190 142.18 142.18 0.00 01/01/2018 DD 0l/0l/03SEC ID: 11/1/2003 31376J4M8OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0456482 6.000% 11/25/2003 5,912.830 398.43 398.43 0.00 02/01/2014 DD 02/0l/99SEC ID: 11/1/2003 31381CCT2OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0509649 6.000% 11/25/2003 62,203.280 1,200.98 1,200.98 0.00 09/01/2014 DD 09/01/99SEC ID: 11/1/2003 31383QEW0OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0535451 6.000% 11/25/2003 8,553.420 913.65 913.65 0.00 06/01/2015 DD 07 /01/00SEC ID: 11/1/2003 31384VZQ8OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO 18 Workbench ·---- Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOUDATED -OCSGO00lO000 11/3/2003 -11/28/2003 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 #0535672 6.000% 11/25/2003 219,014.580 19,929.84 19,929.84 0.00 01/01/2016 DD 12/01/00SEC ID: 11/1/2003 31384WCH10CSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0545296 6.000% 11/25/2003 80,642.380 6,666.80 6,666.80 0.00 11/01/2016 DD 10/01/0lSEC ID: 11/1/2003 31385HXZ0OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0545580 6.000% 11/25/2003 4,925.510 553.21 553.21 0.00 03/01/2017 DD 03/01/02SEC ID: 11/1/2003 31385JCR7OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0545998 6.000% 11/25/2003 10,391.520 1,080.11 1,080.11 0.00 11/01/2032 DD 10/01/02SEC ID: 11/1/2003 31385JRT7OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0555101 6.000% 11/25/2003 7,403.510 965.61 965.61 0.00 10/01/2017 DD 11/01/02SEC ID: 11/1/2003 31385WU23OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0555285 6.000% 11/25/2003 35,257.270 4,328.52 4,328.52 0.00 03/01/2033 DD 02/01/03SEC ID: 11/1/2003 31385W2S7OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0555363 5.000% 11/25/2003 5,440.400 1,651.98 1,651.98 0.00 04/01/2018 DD 03/01/03SEC ID: 11/1/2003 31385W5YlOCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0555528 6.000% 11/25/2003 41,848.170 4,221.45 4,221.45 0.00 04/01/2033 DD 05/01/03SEC ID: 11/1/2003 31385XD95OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0555545 5.000% 11/25/2003 5,131.290 1,379.50 1,379.50 0.00 06/01/2018 DD 05/01/03SEC ID: 11/1/2003 31385XES2OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0555640 6.000% 11/25/2003 39,318.910 4,250.71 4,250.71 0.00 07/01/2033 DD 06/01/03SEC ID: 11/1/2003 31385XHR1OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO 19 Workbench ·-------· Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOUDATED -OCSGO00l0000 11/3/2003 -11/28/2003 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 #0576386 6.000% 11/25/2003 3,278.020 343.83 343.83 0.00 05/01/2016 DD 05/01/0lSEC ID: 11/1/2003 31386XJ72OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0576739 6.000% 11/25/2003 12,238.980 962.52 962.52 0.00 04/01/2016 DD 04/01/0lSEC ID: 11/1/2003 31386XV86OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0580888 6 .000% 11/25/2003 13,979.730 1,258.12 1,258.12 0.00 05/01/2016 DD 05/01/0lSEC ID: 11/1/2003 31387DJ91OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0594002 6.000% 11/25/2003 1,237.050 970.71 970.71 0.00 07/01/2016 DD 07 /01/0lSEC ID: 11/1/2003 31387T3K8OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0597376 6 .000% 11/25/2003 10,830.270 1,334.44 1,334.44 0.00 09/01/2016 DD 08/01/0lSEC ID: 11/1/2003 31387XT96OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0605259 6.000% 11/25/2003 19,261.250 1,006.40 1,006.40 0.00 09/01/2016 DD 09/01/0lSEC ID: 11/1/2003 31388HMG 10CSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0608366 6.000% 11/25/2003 4,662.330 565.16 565.16 0.00 10/01/2016 DD 09/01/0lSEC ID: 11/1/2003 31388LZ78OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0616734 6.000% 11/25/2003 702.850 859.93 859.93 0.00 12/01/2016 DD 12/01/0lSEC ID: 11/1/2003 31388WEF9OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0630812 6.000% 11/25/2003 5,898.740 1,075.82 1,075.82 0.00 02/01/2017 DD 02/01/02SEC ID: 11/1/2003 31389NYH2OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0632376 6.000% 11/25/2003 45,407.090 4,570.76 4,570.76 0.00 07/01/2017 DD 07 /01/02SEC ID: 11/1/2003 31389QQ50OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO ------------------------------------------------- 20 Workbench Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSGO00lO000 11/3/2003 -11/28/2003 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 #0653116 6.000% 11/25/2003 10,193.160 2,599.62 2,599.62 0.00 07/01/2017 DD 07 /01/02SEC ID: 11/1/2003 31390QSD8OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0673280 6.000% 11/25/2003 7,306.950 1,080.81 1,080.81 0.00 08/01/2017 DD 11/01/02SEC ID: 11/1/2003 31391P6R2OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0681309 5.000% 11/25/2003 10,382.180 2,480.11 2,480.11 0.00 02/01/2018 DD 02/01/03SEC ID: 11/1/2003 31391Y3S4OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0681334 5.000% 11/25/2003 1,345.080 312.91 312.91 0.00 02/01/2018 DD 01/01/03SEC ID: 11/1/2003 31391Y4T10CSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0685665 5.000% 11/25/2003 553.910 158.00 158.00 0.00 02/01/2018 DD 02/01/03SEC ID: 11/1/2003 31400EW22OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0686318 5.000% 11/25/2003 5,564.810 1,366.17 1,366.17 0.00 03/01/2018 DD 03/01/03SEC ID: 11/1/2003 31400FPB7OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0688739 5.000% 11/25/2003 2,060.800 527.56 527.56 0.00 06/01/2018 DD 06/0l/03SEC ID: 11/1/2003 31400JEL9OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0693834 5.000% 11/25/2003 7,079.160 3,204.78 3,204.78 0.00 03/01/2018 DD 03/01/03SEC ID: 11/1/2003 31400PY74OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0695852 5.000% 11/25/2003 5,992.480 1,191.12 1,191.12 0.00 05/01/2018 DD 05/01/03SEC ID: 11/1/2003 31400SBV0OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0695889 5.000% 11/25/2003 13,559.980 3,599.60 3,599.60 0.00 05/01/2018 DD 05/01/03SEC ID: 11/1/2003 31400SC23OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO 21 Workbench Transaction Detail ReportlD: EWB009 Rep,orted by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSGO00l0000 11/3/2003 -11/28/2003 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% 11/25/2003 584.490 117.77 117.77 0.00 05/01/2018 DD 04/01/03SEC ID: 11/1/2003 31400TLF2OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0698939 6.000% 11/25/2003 9,992.840 512.15 512.15 0.00 09/01/2017 DD 03/01/03SEC ID: 11/1/2003 31400VPY2OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0702210 5.000% 11/25/2003 3,529.330 1,200.59 1,200.59 0.00 05/01/2018 DD 05/01/03SEC ID: 11/1/2003 31401ADP9OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0703195 6.000% 11/25/2003 841.960 420.26 420.26 0.00 01/01/2017 DD 04/01/03SEC ID: 11/1/2003 31401BGC3OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0709148 5.000% 11/25/2003 2,407.680 1,281.68 1,281.68 0.00 06/01/2018 DD 06/01/03SEC ID: 11/1/2003 31401HZM7OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0710235 5.000% 11/25/2003 7,786.010 3,442.82 3,442.82 0.00 06/01/2018 DD 06/01/03SEC ID: 11/1/2003 31401KBC8OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0713344 5.000% 11/25/2003 124.580 110.91 110.91 0.00 06/01/2018 DD 06/01/03SEC ID: 11/1/2003 31401NP52OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO IT FNMA POOL #0720369 5.000% 11/3/2003 24,563.280 2,863.74 2,863.74 0.00 06/01/2018 DD 06/01/03SEC ID: 9/1/2003 31401WJN0OCSF07522202: LONG TERM 11/3/2003 OPER-PIMCO IT FNMA POOL #0720369 5.000% 11/3/2003 23,645.090 2,761.39 2,761.39 0.00 06/01/2018 DD 06/01/03SEC ID: 10/1/2003 31401WJN0OCSF07522202: LONG TERM 11/3/2003 OPER-PIMCO IT FNMA POOL #0720369 5.000% 11/25/2003 11,684.120 10,411.69 10,411.69 0.00 06/01/2018 DD 06/01/03SEC ID: 11/1/2003 31401WJN0OCSF07522202: LONG TERM 11/25/2003 OPER-PIMCO 22 Workbench Transaction Detail ReportlD: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG000l0000 11/3/2003 -11/28/2003 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 #0721629 5.000% 11/25/2003 2,210.780 1,339.19 1,339.19 0.00 07/01/2018 DD 06/01/03SEC ID: 11/1/2003 31401XVW40CSF07522202: LONG TERM 11/25/2003 OPER-PlMCO IT FORD MOTOR CR CO NT 6.750% 05/15/2005 11/17/2003 1,000,000.000 33,750.00 33,750.00 0.00 DQ 05/24/93SEC ID: 11/15/2003 345397GV90CSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0596612 6.500% 11/17/2003 402.930 2,086.75 2,086.75 0.00 09/15/2032 DD 09/0 l /02SEC ID: 11/1/2003 36200BYH40CSF07522202: LONG TERM 11/17/2003 OPER-PlMCO IT GNMA POOL #0569358 6.500% 11/18/2003 76,320.960 7,430.31 7,430.31 0.00 04/15/2032 DD 04/01/02SEC ID; 11/1/2003 36200QQK3QCSF07522202: LONG TERM 11/18/2003 OP ER-PIM.CO IT GNMA POOL #0569685 6.500% 11/17/2003 3,456.760 325.23 325.23 0.00 02/15/2032 DD 02/01/02SEC ID: 11/1/2003 36200Q2S20CSF07522202: LONG TERM 11/17/2003 OPER-P™CO IT GNMA POOL #0570019 6.500% 11/17/2003 4,987.470 538.00 538.00 0.00 07 / 15/~032 DD 07 /01/02SEC ID: 11/1/2003 36200RG480CSF07-522202: LONG TERM 11/17/2003 OPER-PlMCO IT GNMA POOL #0574323 6.500% 11/17/2003 34,972.160 3,447.90 3,447.90 0.00 12/15/2031 DD 12/01/0 l SEC ID; 11/1/2003 36200WAY70CSF07522202: LONG TERM 11/17/2003 OPER-P™CO IT GNMA POOL #0575364 6.500% 11/17/2003 4,063.360 351.21 351.21 0.00 11/15/2031 DD 11/01/0lSEC ID: 11/1/2003 36!200XFD60CSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0587117 6.500% 11/17/2003 1,266.760 132.38 132.38 0.00 06/15/2032 DD 06/01/02SEC ID : 11/1/2003 36201MG220CSF0752220~: LONG TERM 11/17/2003 OPER-P1MCO IT GNMA POOL #0587439 6.500% 11/17/2003 6,963.060 409.09 409.09 0.00 11/15/2031 DD l2/0l/02SEC ID: 11/1/2003 36201MS450CSF07522202: LONG TERM 11/17/2003 OPER-PIMCO 23 Workbench ------ Transaction Detail ReportID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOUDATED -OCSGO00l0000 11/3/2003 -11/28/2003 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 #0421389 6.500% 11/17/2003 1,103.640 89.74 89.74 0.00 04/15/2026 DD 04/0l/96SEC ID: 11/1/2003 36206UC23OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0438057 6.000% 11/17/2003 40.980 147.33 147.33 0.00 05/15/2028 DD 05/01/98SEC ID: 11/1/2003 36207PTN9OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0449851 6.500% 11/17/2003 42.690 135.72 135.72 0.00 01/15/2028 DD 0l/01/98SEC ID: 11/1/2003 36208FWL0OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0457814 6.000% 11/17/2003 1,418.230 205.14 205.14 0.00 10/15/2028 DD 10/0l/98SEC ID: 11/1/2003 36208QSB3OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0465546 6.000% 11/17/2003 8,056.130 2,441.17 2,441.17 0.00 08/15/2028 DD 08/01/98SEC ID: 11/1/2003 36209AET3OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0465555 6.000% 11/17/2003 14,923.690 2,667.67 2,667.67 0.00 09/15/2028 DD 09/01/98SEC ID: 11/1/2003 36209AE48OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0466845 6.500% 11/17/2003 100.450 405.75 405.75 0.00 06/15/2028 DD 06/01/98SEC ID: 11/1/2003 36209BTA6OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0467279 6.000% 11/17/2003 40.480 114.60 114.60 0.00 10/15/2028 DD 10/0l/98SEC ID: 11/1/2003 36209CCQ7OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0467286 6.000% 11/17/2003 546.640 1,995.85 1,995.85 0 .00 10/15/2028 DD 10/01/98SEC ID: 11/1/2003 36209CCX2OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0468052 6.500% 11/17/2003 1,114.220 1,422.05 1,422.05 0 .00 07/15/2028 DD 07 /01/98SEC ID: 11/1/2003 36209C5M4OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO 24 Workbench Transaction Detail ReportID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSGO00l0000 11/3/2003 -11/28/2003 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 #0468330 6.000% 11/17/2003 1,264.130 100.86 100.86 0.00 05/15/2028 DD 05/01/98SEC ID: 11/1/2003 36209DHF4OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0468339 6.000% 11/17/2003 38,651.260 2,212.26 2,212.26 0.00 08/15/2028 DD 08/01/98SEC ID: 11/1/2003 36209DHQ0OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0469688 6.000% 11/17/2003 249.560 83.57 83.57 0.00 11/15/2028 DD 11/01/98SEC ID: 11/1/2003 36209EXR8OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0476041 6.500% 11/17/2003 26,421.780 1,359.88 1,359.88 0.00 06/15/2028 DD 06/01/98SEC ID: 11/1/2003 36209MZE7OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0478626 6.500% 11/17/2003 13,053.880 1,041.30 1,041.30 0.00 01/15/2029 DD 01/01/99SEC ID: 11/1/2003 36209QVT9OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0480598 6.500% 11/17/2003 34,807.640 1,350.01 1,350.01 0.00 10/15/2028 DD 10/01/98SEC ID: 11/1/2003 36209S3F6OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0483452 6.000% 11/17/2003 2,175.730 76.93 76.93 0.00 09/15/2028 DD 09/01/98SEC ID: 11/1/2003 36209WBV3OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0485527 6.500% 11/17/2003 24,796.890 2,782.15 2,782.15 0.00 06/15/2031 DD 06/01/0lSEC ID: 11/1/2003 36209YLG10CSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0485610 6.500% 11/17/2003 55,613.380 3,223.69 3,223.69 0.00 07/15/2031 DD 07 /01/0lSEC ID: 11/1/2003 36209YN38OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0485682 6.500% 11/17/2003 7,374.760 646.22 646.22 0.00 08/15/2031 DD 08/01/0lSEC ID: 11/1/2003 36209YRB6OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO 25 Workbench Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOUDATED -OCSGO00l0000 11/3/2003 -11/28/2003 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 #0485703 6.500% 11/17/2003 122.040 615.18 615.18 0.00 08/15/2031 DD 08/01/0lSEC ID: 11/1/2003 36209YRY6OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0486720 6.000% 11/17/2003 548.530 64.30 64.30 0.00 12/15/2028 DD 12/01/98SEC ID: 11/1/2003 36210AVM6OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0491103 6.000% 11/17/2003 7,457.720 599.20 599.20 0.00 01/15/2029 DD 01/01/99SEC ID: 11/1/2003 36210FRY4OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0496461 6.000% 11/17/2003 10,819.920 2,316.06 2,316.06 0.00 01/15/2029 DD 01/01/99SEC ID: 11/1/2003 36210MQN4OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0497343 6.000% 11/17/2003 736.530 130.83 130.83 0.00 12/15/2028 DD 12/01/98SEC ID: 11/1/2003 36210NP45OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0499153 6.000% 11/17/2003 21.610 63.54 63.54 0.00 02/15/2029 DD 02/01/99SEC ID: 11/1/2003 36210QQE5OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL#0500917 6.000% 11/17/2003 465.410 46.30 46.30 0.00 04/15/2029 DD 04/01/99SEC ID: 11/1/2003 36210SPA0OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0503388 6.000% 11/17/2003 35,690.830 1,880.18 1,880.18 0.00 03/15/2029 DD 03/01/99SEC ID: 11/1/2003 36210VF55OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0506636 6.000% 11/17/2003 1,172.620 193.46 193.46 0.00 04/15/2029 DD 04/01/99SEC ID: 11/1/2003 36210YY90OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0512235 6.500% 11/17/2003 2,181.280 71.12 71.12 0.00 11/15/2029 DD 11/01/99SEC ID: 11/1/2003 36211GBC6OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO 26 Workbench Transaction Detail Report ID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOUDATED -OCSGO00l0000 11/3/2003 -11/28/2003 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 #0514326 6.500% 11/17/2003 54,175.020 1,262.83 1,262.83 0.00 07/15/2029 DD 07/01 /99SEC ID: 11/1/2003 36211JLF2OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0530053 6.500% 11/17/2003 3,953.540 317.89 317.89 0.00 04/15/2031 DD 04/01/0lSEC ID: 11/1/2003 36212CZS3OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0530290 6.500% 11/17/2003 75.600 374.38 374.38 0.00 03/15/2031 DD 04/01/0lSEC ID: 11/1/2003 36212DC310CSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0537885 6.500% 11/17/2003 160.300 646.49 646.49 0.00 02/15/2031 DD 02/01/0lSEC ID: 11/1/2003 36212MRE10CSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0547512 6.500% 11/17/2003 653.810 76.06 76.06 0.00 04/15/2031 DD 04/01/0lSEC ID: 11/1/2003 36212YGV9OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0547715 6.500% 11/17/2003 164.040 696.94 696.94 0.00 02/15/2031 DD 02/01/0lSEC ID: 11/1/2003 36212YN82OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0552322 6.500% 11/18/2003 2,866.120 463.38 463.38 0.00 01/15/2032 DD 01/01/02SEC ID: 11/1/2003 36213ESK3OCSF07522202: LONG TERM 11/18/2003 OPER-PIMCO IT GNMA POOL #0552466 6.500% 11/17/2003 40,602.130 3,621.69 3,621.69 0.00 03/15/2032 DD 03/01/02SEC ID: 11/1/2003 36213EW36OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0552659 6.500% 11/17/2003 41,259.010 2,804.38 2,804.38 0.00 07/15/2032 DD 07 /01/02SEC ID: 11/1/2003 36213E5U6OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT GNMA POOL #0561017 6.500% 11/17/2003 46,297.620 2,764.92 2,764.92 0.00 07/15/2031 DD 07 /01/0lSEC ID: 11/1/2003 36213QG29OCSF07522202: LONG TERM 11/17/2003 OPER-PIMCO 27 Workbench Transaction Detail ReportID: EWB009 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSGO00l000O 11/3/2003 -11/28/2003 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 II POOL #0080023 VAR RT 12/20/202611/20/2003 11,612.240 1,169.94 1,169.94 0.00 DD 12/01 /96SEC ID: 11/1/2003 36225CAZ90CSF07522202: LONG TERM OPER-PIMCO 11/20/2003 IT GNMA II POOL #080088M 7.375% 11/20/2003 4 ,753.180 1,271.58 1,271.58 0.00 06/20/2027 DD 06/01/97SEC ID: 11/1/2003 36225CC200 CSF07522202: LONG TERM 11/20/2003 OPER-PIMCO IT GNMA II POOL #0080395 VAR RT 11/20/2003 9,601.220 859.18 859.18 0.00 04/20/2030 DD 04/01/00SEC lD: 11/1/2003 36225CNM40CSF07522202: LO.NG TERM 11/20/2003 OPER-PIMCO IT GNMA II POOL #080408X 6.500% 11/20/2003 93,886.990 7,757.40 7,757.40 0.00 05 /20/2030 DD 0 5/01/00SEC ID: 11/1/2003 36225CN280CSF07522202: LONG TERM 11/20/2003 OPER-PIMCO IT GENERAL ELEC CAP MTN #TR 00545 VAR RT 11/20/2003 1,000,000.000 1,067.78 1,067.78 0.00 05/20/2004 DD 05/20/02SEC ID: 11/20/2003 36962GYS70CSF07511102: LI.QUID OPER-11/20/2003 PIMCO IT GNMA GTD REMIC TR 2000-9 FH VAR RT 11/17/2003 38,667.380 1,068.33 1,068.33 0.00 02/ L6 /2030SEC ID: 11/16/2003 3837H4NX90CSF07522202: LONG TERM 11/17/2003 OPER-PIMCO IT SBA GTD PARTN CTFS SBIC-PS 01 6.640% 11/10/2003 78,441.180 41,911.89 41,911.89 0.00 02/10/2011 DD 02/21/0lSEC ID: 11 /1/2003 831641 DD40CSF07522202: LONG TERM 11/10/2003 OPER-PIMCO IT US BANCORP MTN #TR 00119 6 .000% 11/17/2003 1,000,000.000 30,000.00 30,000.00 0.00 05/15/2004 DD 05/ 10/99SEC ID: 11/15/2003 9l l59HEY20CSF07511102: LIQIBD OPER-11/17/2003 PIMCO IT US TREASURY BONDS 11.875% 11/15/2003 11/17/2003 5,800,000.000 344,375.00 344,375.00 0.00 DD 10/05/83SEC ID: 11/15/2003 912810DGOOCSF07511102: LIQUID OPER-11/17/2003 PIMCO CD US TREASURY INFLATION INDEX NT 3.375% 11/28/2003 0.000 53,200.00 53,200.00 0.00 01/15/2007 DD 01/15/97SEC ID: 9 128272M30CSF07522202: LONG TERM 11/28/2003 OPER-PIMCO 28 Workbench OCSD-CONSOUDATED-OCSGOOOlOOOO Transaction Detail Reported by Transaction Category 11/3/2003 -11/28/2003 Tran Trade Date Settle Date Reported Date Type Description CD CD IT IT US TREASURY INFIATION INDEX NT 3.625% 11/28/2003 01/15/2008 DD 01/15/98SEC ID: 9128273T7OCSF07522202: LONG TERM OPER-PIMCO 11/28/2003 US TREASURY INFIATION INDEX NT 3.875% 11/28/2003 01/15/2009 DD 01/15/99SEC ID: 9128274Y5OCSF07522202: LONG TERM OPER-PIMCO 11/28/2003 US TREASURY NOTES 05.750% 11/15/2005 11/17/2003 DD 11/15/00SEC ID: 11/15/2003 9128276N7OCSF07522202: LONG TERM l l / 1712003 OPER-PIMCO WELLS FARGO & CO SUBNT 6.125% 11/01/2003 DD 11/01/93SEC ID: 949740BY9OCSF0751 l 102: LIQUID OPER- PIMCO 11/3/2003 11/1/2003 11/3/2003 TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: TOTAL FIXED INCOME SECURITIES BASE: TOTAL INTEREST BASE: Price Base Shares/Par 0.000 0.000 57,100,000.000 450,000.000 69,702,340.230 69,702,340.230 89,802,340.230 Cost Base 11,190.00 47,840.00 1,641,625.00 13,781.25 2,481,300.09 2,481,300.09 2,538,781.60 ReportID: EWB009 Base Currency: USD Status: FINAL Amount Base Net Gain/Loss Base 11,190.00 0.00 47,840.00 0.00 1,641,625.00 0.00 13,781.25 0.00 2,481,300.09 0.00 2,481,300.09 0.00 2,538,781.60 0.00 TOTAL TRANSACTIONS: 84,330,802.140 8,609,795.08 20,109,258.08 -490,945.45 29 Workbench