The URL can be used to link to this page

Home My WebLink About2005-02-09CORRECTED MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Orange County Sanitation District Wednesday, February 9, 2005, 5:00 p.m. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on February 9, 2005, 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: Roy Moore, Chair Mike Duvall, Vice Chair Bill Dalton Rich Freschi Phil Luebben Darryl Miller Joy Neugebauer Steve Anderson, Board Chair Jim Ferryman, Vice Board Chair DIRECTORS ABSENT: James W. Silva STAFF PRESENT: Blake P. Anderson, General Manager Gary Streed, Director of Finance/Treasurer Carol Beekman, Director of Communications & Administrative Services Lisa Tomko, Director of Human Resources Mike White, Controller Penny Kyle, Committee Secretary OTHERS PRESENT: Brad Hogin, General Counsel Bob Geggie (2) APPOINTMENT OF CHAIR PRO TEM FILED IN THE OFFICE OF THE SECRETARY ORANGF. r"r,, '"~" ~ , .. ,,-,,T,,_~, 111STRICT No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. ' . ~2005 BY __ -+-------- (4) REPORT OF THE COMMITTEE CHAIR Committee Chair Moore welcomed the new Directors to the FAHR Committee. (5) REPORTOFTHEGENERALMANAGER Blake Anderson, General Manager, reminded the Directors of the Board Orientation scheduled for February 16th at 5:00 p.m. This would provide new and returning Directors with a general overview of the District's operations. The Directors were also reminded of the Orange County Leadership Symposium scheduled to be held March 4-5, 2005, in Lake Arrowhead. Directors were encouraged to participate in the event. Minutes of the Finance, Administration and Human Resources Committee Meeting Page2 February 9, 2005 (6) REPORT OF DIRECTOR OF FINANCE/TREASURER Gary Streed, Director of Finance, referred the Directors to two handouts distributed that evening pertaining to Agenda Item Nos. 10(b) and (c). Mr. Streed announced the Governmental Finance Officers Association granted the District its Distinguished Budget Presentation Award for the 2004/05 Budget. The District has received this award for the past eight years. (7) REPORT OF DIRECTOR OF HUMAN RESOURCES The Director of Human Resources had no report. (8) REPORT OF DIRECTOR OF COMMUNICATIONS & ADMINISTRATIVE SERVICES Carol Beekman, Director of Communications & Administrative Services, updated the Directors on the activities and accomplishments for the past quarter on the Communications and Administrative Services Strategic Plan for FY 2004/05 (Agenda Item No. 12(a)). The next update will be provided in April 2005. (9) REPORT OF GENERAL COUNSEL Brad Hagin, Assistant General Counsel, reported that in the interest of time staff would be submitting a request directly to the Board of Directors to consider entering into additional lease agreements in connection with property purchased for the Rocky Point Pump Station in Newport Beach. (10) CONSENT CALENDAR ITEMS a. Approve minutes of the December 8, 2004, Finance, Administration and Human Resources Committee meeting, as corrected. b. C. d. e. f. g. Director Freschi abstained. FAHR05-01 FAHR05-02 FAHR05-03 FAHR05-04 FAHR05-05 FAHR05-06 Recommend to the Board of Directors to receive and file Treasurer's Report for the month of January 2005. Receive and file Certificates of Participation (COP) Monthly Report. Receive and file Employment Status Report as of January 20, 2005. Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. Receive and file SWAP Report for quarter ending December 31, 2004. Recommend to the Board of Directors to receive and file Quarterly Investment Management Program Report for the period October 1, 2004 through December 31, 2004. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 3 February 9, 2005 h. FAHR05-07 Recommend to the Board of Directors to receive and file the Mid-Year MOTION: Financial Report for the period ending December 31, 2004. 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. FAHR05-08 Recommend to the Board of Directors to approve the 2005/06 Budget MOTION: Assumptions, Fiscal Policy Statements, and Budget Calendar. Mike White, Controller, reviewed the FY 2005/06 Budget Assumptions for economic assumptions, revenue assumptions, operating assumptions, reserve assumptions, capital improvement program assumptions and debt financing assumptions. He also outlined the important dates leading to adoption of the FY 2005-06 budget at the June 22, 2005 Board meeting. In response to the Directors' questions on the budgeting process, Blake Anderson, General Manager, advised staff would provide as much detail the Committee felt was appropriate during the review of the budget before adoption. Staff is also available to discuss the budget process in more detail with the Directors individually. It was moved, seconded and duly carried to recommend approval to the Board of Directors. b. FAHR05-09 Authorize the General Manager to renew the consultant agreement with MOTION: Public Resources Advisory Group as the District's Financial Advisor for an additional two-year period beginning with fiscal year 2004-05. Mike White, Controller, gave a brief overview on services provided since 2001 by Public Resources Advisory Group. They are willing to provide assistance for a new debt issuance at no increase in price of $75,000 for fixed rate debt issuance and $100,000 for variable rate debt issuance. It was moved, seconded and duly carried to recommend approval to the Board of Directors. c. FAHR05-10 Consideration of pending 2005 Legislative Proposals: 1. Assembly Constitution Amendment No. 1 2. Assembly Constitution Amendment No. 7 3. Senate Bill No._ (no number assigned at this time) 4. California Deficit Prevention Act Brad Hogin, Assistant General Counsel, reported this item was coming Minutes of the Finance, Administration and Human Resources Committee Meeting Page4 February 9, 2005 MOTION: before the Committee and the Board of Directors to consider taking a position of support or opposition to each measure. The Board's positions would then be transmitted to CASA. The first measure discussed Public Employee Pension Plans (Assembly Constitutional Amendment No. 1 ). This proposal would provide that after July 1, 2007, new employees would have to enroll only in a defined contribution plan of a public pension or retirement system. Directors felt a decision on this issue was premature until more information is provided. The second measure discussed was Assembly Constitutional Amendment No. 7. This amendment would change the present two-thirds voter approval requirement for special taxes to instead authorize a special district to impose a special tax with the approval of 55% of its voters voting on the tax. Special districts have no authority or power to adopt general taxes, but only special taxes, which mean that revenues received must be used for specified purposes within the limited powers of a special district. The Sanitation District has never adopted a special tax. After much discussion, the Directors agreed that this amendment, along with the others included in the report, should be first reviewed and considered by the District's legislative committee and lobbyists before the Board takes a position. It was moved, seconded and duly carried to have the District's legislative committee review this item and provide the Steering Committee with their recommendation. (12) INFORMATION PRESENTATIONS a. FAHR05-11 Communications and Administrative Services Strategic Plan FY 2004-05/Quarterly Update This report was provided under the Director of Communications and Administrative Services Report (Item 8). (13) CLOSED SESSION There was no closed session. (14) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY Upon request for a future report regarding the undercharges for parcels not being noted in the database used for collection of user charges, Gary Streed reported that the review being done in- house has been successful. Temporary staff has been successfully utilized for this project. Out of over 46,000 non-residential parcels, 60% have been inspected resulting in 311 changes. Out of those parcels the District will receive an additional $835,000 in user fees. ROLL CALL FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Meeting Date: February 9, 2005 Time: 5:00 p.m. Adjourn: ___ _ COMMITTEE MEMBERS Roy Moore (Chair) Mike Duvall (Vice Chair) Bill Dalton Rich Freschi Phil Luebben Darryl Miller Joy L. Neugebauer James W. Silva Steve Anderson (Board Chair) Jim Ferryman (Board Vice Chair) OTHERS Tom Woodruff, General Counsel Don Hughes STAFF Blake Anderson, General Manager Carol Beekman, Director of Communications & Administrative Services 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 Technology Robert Ghirelli, Director of Technical Services Mike White, Controller Penny Kyle, Committee Secretary c: Lenora Crane AGENDA REGULAR MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, FEBRUARY 9, 2005, AT 5:00 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California 92708 www.ocsd.com Aqenc:la P0stinq: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. Items Not 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). (1) ROLLCALL (2) APPOINTMENT OF CHAIR PRO TEM . IF NECESSARY Book Page 1 February 9, 2005 (3) PUBLIC COMMENTS All persons wishing to address the Finance, Adm inistration and Human Resources Committee on specific agenda items or matters of general interest should do so at this ti:me. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). (4) REPORT OF COMMITTEE CHAIR (5) REPORT OF GENERAL MANAGER (6) REPORT OF DIRECTOR OF FINANCE (7) REPORT OF DIRECTOR OF HUMAN RESOURCES (8) RE PORT OF DIRECTOR OF COMMUNICATIONS & ADMINISTRATIVE SERVICES (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: jAII matters placed on the consent calendar are considered as not requiring discussion or further explanation and \ i unless any particular item is requested to be removed from the consent calendar by a Director or staff member, \ \there will be no separate discussion of these items. All items on the consent calendar will be enacted by one I ! action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All i I items removed from the consent calendar shall be considered in the regular order of business. ! 1 1 ]The Chair will determine if any items are to be deleted from the consent calendar. l L .. .._ .... • .. •••••• .... ••• .. •• .. ., .... ••••••-••• .. •-•-•-u .. •••· .. •••••••••••• .. ••--••-••·•••• .. •••••••••••• .... u ...... u .. -.,.,,,.,., .. ,,,,, .,., .. ••••••••uo••• .. ••• .. ••••-••n••• .. •• .. ••• .. ••M-•••H+••••·•••••• .. •••u,,.,_,.,n,,,oooHoooo·•••••• .. ••••••••••·•.,j.•40 .... •·•••• l a. Approve minutes of the December 8, 2004, Finance, Administration and Human Resources Committee meeting. b. FAHR05-01 Recommend to the Board of Directors to receive and file Treasurer's Report fo r the m0nth of January 2005. The Treasurer's Report will be distributed at the FAHR Committee meeting in accordance with the Board-approved Investment Policy, and in conformance to the Government Code requirement to have monthly reports reviewed within 30 days of month end. 2 Book Page 2 February 9, 2005 (13) CLOSED SESSION I D~ring the course of conducting the · business set forth on this agenda as a regular meeting of the ' ) ! Committee, the Chair may convene the Committee in closed session to consider matters of pending real i 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 ! ! j Reports relatihg to (a) purchase and sale of real property; (b) matters· of pending or potential litigation; (c) l i ·employ.ee actions or negotiations with employee representatives; or which are exempt from public disclosure i ! under ttie California Public Records Act, may be reviewed by the Committee during-a permitted closed \ l se"ssion and are not available for public inspection. At such time-as final a~ion~ are taken by the Committee i 1 on any of these subjects, the minutes will reflect all required disclosures of information. f : : i,.,...,,.,,, • •••u• • •·•---••• .. ••· .. •••• .. ••••• .. -... • .. ••·••••• .. •••••••·•••0-0•·•·•••·u••-• ... ••-••• • •••••. ••• ••••-u•u·•••• .. ••••••-•• .. ••...,.••• .. •-•·••••-••u._., .. ..., ........... .' •• .. ••••••••,...•---•••••• .. ·•••••• .. •·•o-•-.o"' ... ,u,o..-,oo-; a. Convene in closed session. b. Reconvene in regular session. c. Consideration of action, if any, on matters considered in closed session. (14) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTALAGENDA ITEMS, IF ANY (15) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION ~ND STAFF REPORT (16) FUTURE MEETING DATES The next Finance, Administration and Human Resources Committee Meeting is scheduled for March 9, 2005, at 5 p.m. (17) ADJOURNMENT !"''uuo.ouu,,,.,,,, .. ,o,.,, .. _.,,,..,,,,,,,,,,._,,,,,,...,, .. .,,.,_.,,, ••••••• .. ••oo• .......... ••••••••••••••• .. ••• .. ••••·••·•••j•~•·••••••••••••uu.•·•• ................. ,, •• .,., .................. , .............. ,.H ... •••-•o .. •••••U .... •,..,••-• .. •••••••••• .... •• .. ••••••••••• .. -••-·••, i Notice to Committee Members: I : : I i i For any questions on the agenda or to place any items on the agenda, Committee members should contact the l jCommittee Chair or Secretary ten days in advance of the Committee meeting. \ ~ . I Committee Chair: Roy Moore (714) 990-7703 !Committee Secretary: Penny Kyle (714) 593-7130 pkyle@ocsd.com \General Manager Blake Anderson (714) 593-7110 banderson@ocsd.com !Director of Finance Gary Streed (714) 593-7550 gstreed@ocsd.com I Director of Human Resources Lisa Tomko (714) 593-7145 ltomko@ocsd.com \Director of Communications & Carol Beekman (714) 593-7120 cbeekman@ocsd.com 1,A;dministrative Services . •~u••••••••""'••••-•n-••· .. •H•••••••• C. ••..,,•,.•••••-,...,.,u,,, • .,, .. ••••un ........... , .... ••••• .. -• ,._ ......... .., ............. --. .... •••••• .. •·•••"4••••••••.., ,.,,. •r•• .. •••••• ...... ,...,. .... .UUH...,••-•••M .C •ooHn.,H••-••••• .. ·••••• .. •••• .. •-••••u ••-•-••oh, H: \dept\agenda\FAHR\FAHR2005\0205\01 . 3. FAHR Agenda. doc 4 Book Page 4 Book Page 6 MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Orange County Sanitation District Wednesday, December 8, 2004, 5:00 p.m. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on December 8, 2004, 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: Roy Moore, Chair Mike Duvall, Vice Chair Patricia Bortle Bill Dalton Darryl Miller Joy Neugebauer James W. Silva Steve Anderson, Board Chair DIRECTORS ABSENT: Jim Ferryman, Vice Board Chair STAFF PRESENT: Blake P. Anderson, General Manager Gary Streed, Director of Finance/Treasurer Carol Beekman, Director of Communications & Administrative Services Lisa Tomko, Director of Human Resources Mike White, Controller Lisa Arosteguy, Human Resources Supervisor Ann Sullivan, Human Resources Analyst Paul Loehr, Senior Human Resources Analyst Rich Castillon, Information Technology Manager Jennifer Cabral, Senior Public Information Specialist Penny Kyle, Committee Secretary Lilia Kovac, Assistant Committee Secretary OTHERS PRESENT: Director Cathy Green Brad Hogin, Assistant General Counsel Layne Baroldi Bob Geggie (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Committee Chair Moore had no report. (5) REPORTOFTHEGENERALMANAGER Book Page 7 Minutes of the Finance, Administration and Human Resources Committee Meeting Page2 December 8, 2004 Blake Anderson, General Manager, reported that the Orange County Business Council Board of Directors has invited him to join their Executive Committee. This opportunity will afford OCSD a forum to educate the customers about the District's infrastructure. The Directors were reminded that the Orange County Leadership Symposium will be held January 14-16, 2005, in Lake Arrowhead. The Directors were encouraged to attend this event. It was also noted that the Orange County Grand Jury will be visiting the District on Monday, December 13, to learn about the District's infrastructure. (6) REPORT OF DIRECTOR OF FINANCE/TREASURER The Director of Finance/Treasurer had no report. (7) .REPORT OF DIRECTOR OF HUMAN RESOURCES Lisa Tomko, Director of Human Resources, introduced Paul Loehr, Senior Human Resources Analyst, who will be involved with employee labor relations. (8) REPORT OF DIRECTOR OF COMMUNICATIONS & ADMINISTRATIVE SERVICES The Director of Communications & Administrative Services had no report. (9) REPORT OF GENERAL COUNSEL Assistant General Counsel Brad Hogin had no report. (10) CONSENT CALENDAR ITEMS a. Approve minutes of the November 10, 2004, Finance, Administration and Human Resources Committee meeting, as corrected. b. FAHR04-105 Recommend to the Board of Directors to receive and file Treasurer's Report for the month of November 2004. c. FAHR04-106 Receive and file Certificates of Participation (COP) Monthly Report. d. FAHR04-107 Receive and file Employment Status Report as of November 15, 2004. e. FAHR04-108 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. f. FAHR04-109 Receive and file report of General Manager approved purchases in amounts exceeding $50,000 in accordance with Board purchasing policies. g. FAHR04-110 Recommend to the Board of Directors to adopt Resolution No. OCSD 04- _, amending Resolution No. OCSD 98-33, amending Human Resources Policies and Procedures Manual. Book Page 8 Minutes of the Finance, Administration and Human Resources Committee Meeting Page 3 December 8, 2004 h. FAHR04-111 Recommend to the Board of Directors to adopt Resolution No. OCSD 04- -' amending Resolution No. OCSD 98-33, amending Human Resources Policies and Procedures Manual re specific IT related policies. i. FAHR04-112 Receive and file informational report on Status and Impact of State MOTION: Property Tax Shift for 2004-05 and 2005-06. 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. FAHR04-113 Approve a one time only non-base building payment for the Director of MOTION: Technical Services in an amount not to exceed $3,480 for his service as Acting General Manager. Blake Anderson, General Manager, reported the item is being resubmitted to the FAHR Committee for a revised lower amount, after consideration of comments made at the last FAHR Committee meeting. It was moved, seconded and duly carried to recommend approval to the Board of Directors. b. FAHR04-114 In response to the Huntington Beach Conference and Visitors Bureau (HBCVB) proposal, continue to use the planned efforts for community outreach activities and education programs as described in the current Communications and Administrative Services Strategic Plan FY 2004-05. Carol Beekman, Director of Communications & Administrative Services, reported the Steering Committee and staff have reviewed the proposal submitted by the HBCVB. In response to the District's Labor Day weekend effluent discharge to the Santa Ana River and subsequent pre- emptive closing of nearby beaches by the County Health Department, the HBCVB has made a proposal that the District establish a special budget for an advertising campaign that would directly benefit the city's tourism industry. Board Chair Steve Anderson met with the mayors of Huntington Beach and Newport Beach and representatives of HBCVB. The General Manager wrote a memo to Chair Anderson outlining staff recommendations that were presented at the November 17, 2004 Steering Committee meeting. After Chair Anderson's review of the recommendations, he asked that the proposal be submitted to the FAHR Committee for consideration. General Counsel issued an opinion that was shared with the FAHR Committee that the proposal, as written, would constitute an unlawful gift of public funds because it would have a purely private purpose (prevention of lost revenue to area businesses), and it would vest discretionary spending authority in a private individual, effectively allowing Book Page 9 Minutes of the Finance, Administration and Human Resources Committee Meeting Page4 December 8, 2004 MOTION: a private individual to spend public funds. Ms. Beekman noted highlights contained in a letter dated November 30, 2004, from the HBCVB, that was provided to the Directors that evening: (1) "We think OCSD should step up to its job for education and outreach and finance a significant regional advertising campaign to tell the story"; and, (2) "It could even be funded as a Supplemental Environmental Project of the Regional Water Quality Control Board using OCSD's fines assessed for the Labor Day sewage spill." It was noted that Dr. Robert Ghirelli, Director of Technical Services and a former Executive Officer of a Regional Water Quality Control Board, had provided his considered opinion that the Regional Water Quality Control Board's supplemental environmental projects are designed for projects to improve water quality and that the HBCVB proposal would not qualify for that reason. Ms. Beekman referred the Directors to review a handout provided that evening listing projects the District has voluntarily initiated since the 1999 Strategic Plan analysis of peak flow management. It was noted more than $700 million has been spent to date to better the District's system and decrease risks of emergency discharge. The Directors entered into a brief discussion and Director Cathy Green was asked for her input. The city is having a difficult time promoting an environmentally friendly city while experiencing beach closures for sewage spills, and construction problems in connection with the Bushard Trunk Sewer project. She asked that the District do more in promoting a positive image and to do more in promoting positive reports to the public. It was moved, seconded and duly carried to continue with the planned efforts for community outreach activities and education programs as described in the current Communications and Administrative Services Strategic Plan FY 2004-05. c. FAHR04-115 Approve the request for proposal for independent financial auditors to MOTION: conduct the annual financial audit over a five year period beginning with the fiscal year ending 2004-05 and the list of independent auditors to receive the proposal. Mike White, Controller, provided a brief report on the successful audit results of the District's accounting practice. The FAHR Committee directed staff to continue with the existing Audit Committee Policy and Procedure. It was also noted that Moreland & Associates was not to be asked to submit a proposal as they have served as the external auditors for the last ten years; and Moss, Levy & Hartzheim was not to be asked to submit a proposal as they are currently serving as the District's contract internal auditors. It was moved, seconded and duly carried to recommend approval to the Board of Directors. Book Page 10 Minutes of the Finance, Administration and Human Resources Committee Meeting Page 5 December 8, 2004 MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. (12) INFORMATION PRESENTATIONS There were none. (13) CLOSED SESSION There was no closed session. (14) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY The General Manager advised the Directors that General Counsel was sending the Board of Directors a confidential memorandum regarding the Yakima Company. Director Bortle announced that this was her last FAHR meeting. Committee members expressed gratitude for her service to the agency. (15) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled for February 9, 2005 at 5 p.m. (16) ADJOURNMENT The Chair declared the meeting adjourned at 5:45 p.m. Submitted by: / ,,.. .. ,: ,~' .r!tp ;// ._.,,, /.';!/ :'./1 '\L .-_,r • •-<. I ,r , I ·' .. . •1 -- Penny M.:Kyle •1 FAHR Committee Secretary H:\dept\agenda\FAHR\FAHR2004\1204I120804 FAHR Minutes.doc Book Page 11 Book Page 12 FAHR CO MM ITTEE AGENDA REPORT Orange County Sanitation District FROM: Gary G. Streed, Director of Finance Originator: Michael D. White, Controller Meeting Date 02/09/05 Item Number FAHR0S-02 SUBJECT: CERTIFICATES OF PARTICIPATION (COP) MONTHLY REPORT - JANUARY 2005 GENERALMANAGE~SRECOMMENDATION To Bd. of Dir. Item Number Receive and file Certificates of Participation (COP) Monthly Report for the month of January 2005. SUMMARY The District began issuing Certificates of Participation (COPs) on a variable interest rate basis in 1990. These variable rate COPs were a part of our long-term financing plan which also included some more traditional fixed rate borrowing. In 1992 and 1993, some of the fixed rate COPs were refunded and replaced with synthetic-fixed rate COPs. These are variable interest rate COPs that are also subject to a long-term fixed-rate interest exchange agreement (SWAP). The SWAP provides the maximum interest rate to be paid by the District, and is less costly than traditional fixed rate borrowing. In August 2000, the entire financing program was restructured and modernized to incorporate and take advantage of the consolidation of District books of account and revenue structure. This process has reduced the number of COP issues from five to three; 1992 Refunding COPs, 1993 Refunding COPs and 2000 Refunding COPs. The 2000 COPs can be divided into Series A and Series B, if additional remarketing agents are desired. In August 2003, the District issued $280 million of fixed rate COPs, Series 2003, that have varying coupon rates that are matched against the varying maturity dates. The true interest cost for the entire issue is 5.15 percent. Variable interest rate COPs can be put back on the market by the buyer each day. When this happens, they must be remarketed or sold to another buyer. This process, called remarketing, is generally provided by a municipal bond underwriter. The remarketing agent sets the interest rate they believe is required to sell the COPs. Some issuers believe that having more than one remarketing agent promotes competition and results in lower interest costs. Staff has monitored variable interest rate issues of other agencies since the inception of our program. The attached charts are described in the "Additional Information" section of this agenda report. They are provided monthly to compare our actual interest rates to a composite index, and to other selected issuers of similar credit quality, and with COP issues of similar amounts. Many variables affect interest rates, but staff expects our rates to be among the lowest. PRIOR COMMITTEE/BOARD ACTIONS N/A Book Page 13 - 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. r8'.I Not applicable (information item) ADDITIONAL INFORMATION No report for December 2004 was issued because there was no FAHR meeting held in January 2005. The attached graphs that provide information through January 2005, also contain the information for December 2004. 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 Attachments were not available at time of photecopying. They will be distributed at the 219105 FAHR Meeting. 1. Graph -OCSD COP Rate History Report 2. Graph -Comparative Daily COP Rate History Report 3. Graph -COP Daily Rate History, Comparison of Highest & Lowest Rates 4. Tabular-COP Rate History, Comparison of Monthly Averages GGS:MW:lc H:\dept\agenda\FAHRIFAHR2005\0205\0S--02.COP doc Revised: 06/04/03 Book Page 14 Page 2 FAHR COMMITTEE Meeting' Date 02/09/05 AGENDA REPORT Item Number FAHR05-03 Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Lisa Arosteguy, Human Resources Supervisor SUBJECT: EMPLOYMENT STATUS REPORT AS OF JANUARY 20, 2005 GENERAL MANAGER'S RECOMMENDATION Receive and file the Employment Status Report SUMMARY The number of full-time equivalent (FTE) employees at the District is 587.50 as of January 20, 2005. PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECTICONTRACTCOSTSUMMARY 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. IZ] Not applicable (information item) ADDITIONAL INFORMATION The actual number of employees (headcount) was 598 as of January 20, 2005. There were 11 promotions: • Jeff Gitch and Robert Ortega were promoted from Storekeepers to Lead Storekeepers (Purchasing and Warehouse) To Bd. of Dir. Item Numb.er • Angela Belt was promoted from Principal Accountant to Accounting Supervisor (Accounting) • Tim Hopkins was promoted from Maintenance Worker to Senior Mechanic (Regional Assets and Services) H:\deptlagenda\FAHRIFAHR200510205\05-03 Emp Status.doc Revised: 06104/03 Book Page 15 Page 1 • Ernest Savedra and Duane Smith were promoted from Mechanics to Senior Mechanics (Regional Assets and Services) • Roya Sohanaki was promoted from Associate Engineer Ill to Engineer (Source Control) • Jennifer Cabral was promoted from Public Information Specialist to Senior Public Information Specialist (Communications) • Michelle Hetherington was promoted from Associate Engineer Ill to Regulator Specialist (Environmental Assessment) • Peter Cheffs was promoted from Senior Mechanic to Lead Mechanic (Regional Assets and Services) • Gary Conklin was promoted from Associate Engineer Ill to Engineer (Project Management Office) There were five new hires: • Cost Estimator (Engineering and Construction) • Engineer (Engineering and Construction) • Principal Accountant (Accounting) • Accounting Assistant I (Accounting) • Administrative Assistant (Communications) There were two terminations: • Instrumentation Technician II (Instrumentation and Electrical Maintenance) • Intern (Environmental Compliance Services) ALTERNATIVES N/A CEQA FINDINGS NIA ATTACHMENTS 1. January 20, 2005 Employment Status Report 2. Performance compared to budgeted FTE's H:ldept\agenda\FAHRIFAHR200510205\05-03.Emp Status doc Revised: 06104103 Book Page 16 Page 2 CJJ 0 0 ;;,;- -0 Q) (0 CD 700 680 - 660 - 640 - 620 - 600 - 580 - 560 - 540 - 520 - 500 -.-AUTHORIZED FTE -II-ACTUAL FTE • • •---• MAR APR 596 596 559.75 564.75 STAFFING REPORT • • / • • • • MAY JUN JUL AUG 596 598 598 628 567.75 571.75 571.75 576.25 • • • • • • • • SEP OCT NOV JAN 628 628 628 628 578.25 581.50 584.00 587.50 OJ 0 0 ;,;- -a w co (1) -'- CX> AUTHORIZED FTE DIV REG M!! 0.75 110 General Managemenl Admln 2.00 120 Admlnlslrallve Services 7.00 1.00 130 Communlcallons 7.00 0.50 General Management Totals 16.00 1.50 21D Finance Admlnlslrallon 2.00 . 220 Accounting 20.00 230 PurchMlng & Warehousrna 22.00 0.50 Finance Totals 44.00 0.50 . 510 Human Resources Admln 7.00 . lnterna lntem Program (510) 9.00 520 Employee Development/Training 3.00 . 530 Safely & Heallh 7.00 540 Employee Services 6.00 540 Planned RecruHmenls 2.00 Hun-.n Rasclun:es Totals 26.00 9.00 . 610 Technical Services Admln 2.00 . 620 Environmental Assessment 15.00 630 Environmental Sciences Lab 36.00 1.00 640 Souree Conlrul 40.00 . 660 Environmental Compllahce Svcs 18.00 Technical Services Total• 111.00 1.00 710 Engineering Admln 3.00 . 740 Planning 18.00 - 750 Pro)ad Management Office 17.00 0.75 760 Engineering & Construcllon 68.00 - Engineering Totals 94.00 0.711 810 O&M Admlnlslrallon 4.00 . 420 Regional Assets & Services 29.75 0.50 430 FacllHles Maintenance Svcs 32.00 0.75 820 O&M Process Engineering 15.00 0.50 . 830 Operallons, Plant No. 1 39.00 . 0.75 640 Operations, Planl No. 2 47.00 . 650 Mech Malnl & Power Produdlon 59.00 . 880 Electrical & Instrumentation Main! 54.00 . Operations & Maintenance Totals 279.75 1.75 0.75 910 IT Admlnlslrallon 2.00 930 IT Customer & Nelwori< Suppor1 17.00 . 940 IT Programming & Database Sys 12.00 -. 950 IT Process Conlrols Integration 13.00 Information TechnolQGY Totals 44.00 GRAND TOTAL FT& 113.711 13.76 1.110 --- TOTAL AL!Tl:fQRIZED FTE 829.00 R:1540\open\Recruiting_shared\Posilion Control-FAHR REPORT.xis EUPLOYIIENT STATUS REPORT ACTUALFTE Recrullments Vacancies mm Bs§. O.SD 0.75 UM .mr& z.oo 2.00 --2.00 - 1.00 7.00 1.00 --8.00 . - 1.10 7.00 0.50 --7.50 . 17.50 ta.DO 1.SD -. 17.60 . - z.oo 2.00 . . . 2.00 1.00 . 20.00 20.00 . . 20.00 . . 22,611 19.00 0.50 -. 1u;o 3.00 300 44.10 41.00 0.60 . 41.80 4.00 3.00 7.00 5.00 . -5.00 . 200 9.00 . 7.00 -7.00 1.00 200 3.00 3.00 . . . 3.00 . 1.00 7.00 -. 7.00 8.00 6.00 . . -8.00 . - 2.00 . -. -. 200 U.00 21.00 7.00 . . 21.00 1.00 &.00 2.00 2.00 . --2.00 . - 11.00 14.00 . -. 14.00 . 1 00 37.00 35.DD 2.00 -. 37.00 . - 40.00 40.00 . -. 40.00 1,00 18.00 18.00 . . 1400 112.00 109.00 2.00 . . 111.00 1.00 UN) 3.00 3.00 . . 3.00 - 11.00 15.00 . -15.00 1 00 17.71 12.00 . 0.75 . 12.75 5.00 500 A.OD 47.00 . . 2.00 48.00 6,00 9,00 M.11 77.00 0.75 2.00 7S.78 11.00 111.00 4.00 4.00 . . 4.00 1.00 - 3G.21 25.00 0.50 0.75 . 28.25 400 400 32.71 30.00 0.75 -. 30.75 2.00 2.00 11.10 13.00 . . 13.00 3.00 250 31.71 36.DD -0.75 . 3US 2.00 3.00 47.00 46.00 -. 44.00 -1.00 19.00 57.00 . . 1.00 SB.DO 1.00 1.00 14.00 52.00 . -. .52.00 1.00 200 212.21 2'3.00 f.26 1.60 1.00 2N.78 14.00 15.50 2.08 2.00 -. 2.00 . . 11.00 16.00 -. 1.00 17.00 -. 12.00 11.00 . . . 11.00 1.00 100 13.00 13.00 -. -13.00 -. 44.0G 42.00 . 1.00 400 1.00 1.00 1119.00 12.26 2.26 4.00 --- =1 .!QI&.. 1· Total • Total Vacancle& AQTUl§LFTE Recrultmenll (laun>a1JH,,,.,n1&) 587.50 32.00 9.50 1/20/2005 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. 02/09/05 Item Number Item Number FAHR0S-04 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 ten DART Cases District-wide for the period of January-December 2004. The industry average is 4.5 for the DART Case Incidence Rate while the District Incident Rate was 1.75 for the period of January-December 2004. There were 22 OSHA Recordable Accidents District-wide for the period of January-December 2004. The industry average is 7.3 for the Total Injury Frequency Rate while the District Incident Rate was 3.86 for the period of January-December 2004. The Division also tracks the District's Workers' Compensation Claims and Costs. The District's claim count for Fiscal Year 2004-2005 is six. The costs associated with these claims for year-to-date is $3,399.55, which includes medical bills, temporary disability payments, legal costs and a claim reserve account. * DART -Days Away, Restricted or Transfer; replaces Lost Work Day. PRIOR COMMITTEE/BOARD ACTIONS NIA 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. 1Z! Not applicable (information item) Revised: 06/04/03 Book Page 19 Page 1 ADDITIONAL INFORMATION The District had ten DART cases and twelve other injuries that required only medical treatment for the period of January-December 2004. The reporting period is for 45 days prior to committee meeting. ALTERNATIVES N/A CEQA FINDINGS NIA ATTACHMENTS 1. OSHA Incidence Rates Reports for DART Cases and Total Injuries 2. Workers' Compensation Claims and Costs Revised: 06/04/03 Book Page 20 Page 2 Workers' Compensation Claims and Costs Workers' Compensation Claims and Costs 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 for July-December 2004 totaled $84,771.04. Medical treatment costs are charged to the fiscal year in which the injury occurred. All open claims have the potential to incur additional costs. After the medical review process, the amount was reduced to $44,081.49, which resulted in savings of $40,689.55 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 $295,670 7/1/90-6/30/91 76 0 $121,978 7/1/91 -6/30/92 58 2 $228,212 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 0 $369,949 7/1/97 -6/30/98 45 1 $1,026,722 7 /1 /98 -6/30/99 38 2 $274,403 7/1/99 -6/30/00 43 2 $351,608 7/1/00-6/30/01 32 2 $429,761 7/1/01 -6/30/02 30 6 $446,862 7 /1 /02 -6/30/03 18 4 $118,034 7 /1 /03 -6/30/04 15 2 $88,235 7 /1 /04 -6/30/05 6 1 YTD $3,399 "Total Incurred" includes medical bills, temporary disability payments to employees, legal costs, and a claim reserve account. Book Page 23 Book Page 24 FAHR COMM ITTEE AGE NDA REPORT Orange County Sanitation District FROM: Gary G. Streed, Director of Finance Originator: Michael D. White, Controller Meeting Date 02/09/05 Item Number FAHR0S-05 SUBJECT: SWAP REPORT FOR THE QUARTER ENDED DECEMBER 31, 2004 GENERAL MANAGER'S RECOMMENDATION Receive and file Swap Report for the quarter ended December 31, 2004_ SUMMARY To Bd. of Dir. 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 December 31, 2004: 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, Inc. '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: No new hedging products have been entered into by the District since the last report covering the period ended September 30, 2003. 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 25 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. October Paid by the District to the Swap Provider Paid by the Swap Provider on behalf of the District November Paid by the District to the Swap Provider Paid by the Swap Provider on behalf of the District December Paid by the District to the Swap Provider Paid by the Swap Provider on behalf of the District Requirement 1992 Certificates AIG Swap 1993 Certificates Soc Gen Swap $159,790.00 $ (58,973.41) $159,790.00 $ (52,367.18) $159,790.00 $ (60,285.18) List any credit enhancement, liquidity facility or reserves associated therewith including an accounting of all costs and expenses jncurred, 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: -Lloyds Bank Standby Purchase Agreement Commitment fees for the quarter ended October 31 , 2004: $67,964.96 H:ldept\agenda\FAHRIFAHR200510205\05--05 SWAP doc Revised: 06/04/03 Book Page 26 Page 2 Credit Enhancements, liquidity facility or reserves associated with the 1993 Certificates Soc Gen Swap: -Soc Gen Irrevocable Letter of Credit Fee: No costs or expenses were incurred during the quarter ended December 31, 2003. Credit Enhancements, liquidity facility or reserves associated with the 2000 Certificates: -Dexia Public Finance Bank Standby Certificate Purchase Agreement Commitment Fee for the quarter ended October 31, 2004: $71,993.63 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 va lue 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. Following are the counterparty risk an termination risk as of December 30, 2004: Counterparty Risk Termination Risk Requirement 1992 Certificates AIG Swap 1993 Certificates Soc Gen Swap $ 982,376 $3,330,767 $13,301,593 $3,133,190 The report shall also include a copy of this Policy in the quarter after it is adopted or subsequently modified. Results: No modifications have been made to the Policy since its adoption. PRIOR COMMITTEE/BOARD ACTIONS N/A H:ldepllagenda\FAHRIFAHR2005\0205105-05,SWAP,doc Revised: 06/04/03 Book Page 27 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. 18] Not applicable (information item) ADDITIONAL INFORMATION N/A ATTACHMENTS None. H:\dept\agenda\FAHRIFAHR2005\0205\05-05 SWAP.doc Revised: 06/04/03 Book Page 28 Page4 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Gary G. Streed, Director of Finance Originator: Michael D. White, Controller Meeting Date To Bd. of Dir. 02/9/05 02/23/05 Item Number Item Number FAHR05-06 SUBJECT: QUARTERLY INVESTMENT MANAGEMENT PROGRAM REPORT FOR THE PERIOD OCTOBER 1, 2004 THROUGH DECEMBER 31, 2004 GENERAL MANAGER'S RECOMMENDATION Receive and file the Quarterly Investment Management Program Report for the period October 1, 2004 through December 31, 2004. SUMMARY Section 15.0 of the District's Investment Policy includes monthly and quarterly reporting requirements for the District's two investment portfolios. These two funds, the "Liquid Operating Monies," and the "Long-Term Operating Monies" are managed by PIMCO, the District's external money manager. The ongoing monitoring of the District's investment program by staff and Callan Associates, the District's independent investment advisor, indicates that the District's investments are in compliance with the District's adopted Investment Policy and the California Government Code, and that overall performance has tracked with benchmark indices. In addition, sufficient liquidity and anticipated revenues are available for the District to meet budgeted expenditures for the next six months. The District's portfolios do not include any reverse repurchase agreements or derivative securities. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT 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. [ZI Not applicable (information item) H:\dept\agenda\FAHRIFAHR200510205105-06 lnvestmentMgmtRpt doc Revised: 8120/98 Book Page 29 Page 1 ADDITIONAL INFORMATION Performance Reports The Quarterly Strategy Review, prepared by PIMCO, and the Investment Measurement Service Quarterly Review, prepared by Callan Associates, are attached for reference. Also attached are Long -Term and Liquid Operating Monies Summary of Performance Data and Portfol.io Statistics charts that depict the performance results, estimated yield and duration, credit quality,, and sector diversification of the District's portfolios, as of October 1 , 2004 and December 31, 2004. The Liquid Operating Monies portfolio, with an average maturity of 90 days, consists entirely of cash equivalent investments such as U.S. Treasuries and corporate discount notes. Portfolio Performance Summary The following table presents a performance summary of the District's portfolios as compared to their benchmarks for the period October 1 through December 31, 2004. Portfolio Performance Summary Quarter Ended December 31, 2004 Liquid Operating Monies (%) Long-Term Operating Monies.(%) Total Rate Total Rate of of Return Benchmar1<11> Return Benchmar1<<1> 3 Months 0.44 0.44 0.32 0.15 6 Months 0.79 0.77 1.89 1.85 9 Month~ ,1.0G 1.01 0,77 0.11 12 Months 1.32 1.24 2.31 U 6 Since lnceptjon 30 Sept. 95 4.29 3.85 6.06 5.97 Market Value $73.1M $368.0M Average Quality "AM" "AAA" Current Y·ield (%) 2.0 3.6 Estimated Yield to Maturity(%) 2.5 3.5 Quarterly Deposits (Withdrawals) $OM $3.7M Estimated Annual Income $1.7M $13.1M (1) Benchmarks: • Liquid Operating Portfolio: 3-Month Treasury Bill Index • Long-Term Operating Portfolio: Merrill Lynch Corp/Govt. 1-5 Year Bond Index Portfolio Market Values Comparative marked-to-market quarter-end portfolio values are shown in the following table, and in the attached bar chart. Quarter Ending 31 Mar. 04 30 June 04 30 Sept. 04 31 Dec. 04 H:\depllagendalFAHRIFAHR200510205\05-06.lnveslmentMgmtRpt doc Revised: 8/20198 Liquid Operating Monies ($M) 91 .6 112.4 72.8 73.1 Book Page 30 Long-Term Operating Monies ($M) 392.7 388.4 363.1 368.0 Page2 District's Investment Account Balances as of December 31, 2004 Investment Accounts State of Calif. LAIF Union Bank Checking Account PIMCO -Short-term Portfolio PIMCO -Long-term Portfolio Petty Cash TOTAL Debt Service Reserves w/Trustees ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. Historical Yield Curve Graph 2. PIMCO Quarterly Report Book Balances December 31, 2004 $ 31,508,111 3,465,420 85,242,588 364,563,526 4000 $484 783 645 $ 62,78Z,165 3. Quarter End Portfolio Market Value Bar Chart Estimated Yield(%) 2.13 1.73 2.50 3.43 N/A 3.17 3.08 4. Summary of Performance Data and Portfolio Statistics -Liquid Operating Monies 5. Summary of Performance Data and Portfolio Statistics -L-T Operating Monies 6. Investment Transactions and Balances in LAIF 7. Asset Summary by Asset Type -Liquid Operating Portfolio 8. Asset Summary by Asset Type -Long Term Portfolio 9. Investment Listing of Liquid Operating and L-T Portfolios (Yield Analysis Report). 10. Callan Report (separate bound document) 11. PIMCO Report (separate bound document) H:\depllagenda\FAHRIFAHR2005\0205\05--06 lnvestmentMgmlRpl doc Revised: 8/20/98 Book Page 31 Page 3 Book Page 32 a, 0 l 0 ;:,;- ""O C ...J Q) w (0 > Cl) w w 5.50 5.25 5.00 4.75 4.50 4.25 4.00 3.75 3.50 3.25 3.00 2.75 2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.75 0.50 - - ~ .. 0 E C") I HISTORICAL YIELD CURVEI / / _./ / -----/ ~ ----=::::r _,,,,.., _____ _............. ------___....--_.,,,---~ --' -----___.....--~ ----_.,,,---~ -------- ~ ------_.,,,---~ 0 e co --/ --_.,,,--- ... >,, ... __,/' ,&--" ' ... >,, N ... >,, C") I I ... ... >,, >,, IO .... -+-30-Jun-04 --11-30-Sep-04 -31-Dec-04 ... >,, 0 ... ~ ... >,, 0 N . - Book Page 34 January 31, 2005 Mr. Mike White Controller Orange County Sanitation District 10844 Ellis A venue Administration Building Fountain Valley, CA 92708-7018 Re: 4th Quarter 2004 Report Dear Mike: PIM C 0 840 Newport Center Drive Suite 100 Newport Beach, CA 92660 Tel: 949.720.6000 Fax: 949.720.1376 The following is a description of events in the bond markets during the 4th quarter of 2004 and an analysis of the strategies undertaken in the Orange County Sanitation District's long-term and liquid portfolios over the period. We have also included a section on strategies to be pursued in your portfolios during the coming months. Bond Market Recap: Bond Markets Rally, Showing Unexpected Strength in 2004 All major fixed income sectors posted gains in the final quarter of 2004, capping a year in which bonds showed unexpected strength. The Lehman Brothers Aggregate Bond Index, a widely used index for the high-grade bond market, returned 4.34 percent for the year despite several major headwinds. These included expanding U.S. fiscal deficits, a falling U.S. dollar and market perceptions as the year began that interest rates were bound to rise from levels near historic lows. Besides these headwinds, fixed income markets had to weather a tightening cycle by the Federal Reserve that began in June. The central bank raised the federal funds rate five times during the year for a total of 125 basis points. The latest move came on December 14, when the Fed lriked rates by 25 basis points to 2.25 percent. Despite this tightening cycle, bond investors were encouraged by statements from the Fed that it would continue to move at a measured pace. Investors also understood that the Fed was lifting rates from unusually low levels that had been set to ward off deflation. Yields on longer maturity Treasuries actually fell during 2004, with the yield on the benchmark 10-year Treasury ending the year at 4.22 percent, down 3 basis points. Yields on shorter maturities rose by more than 100 basis points as a result of Fed tightening. The relatively steep 2- 10 year portion of the yield curve flattened, with the difference between two-year and 10-year Book Page 35 yields narrowing from 242 basis points at the beginning of the year to 115 basis points by the end of 2004. Significant support for U.S. Treasury and corporate bond markets came from abroad in 2004. These investors included Asian central banks that used U.S. dollar and Treasury purchases to prevent appreciation of their currencies. More than 40 percent of outstanding Treasuries are now held by investors outside the U.S. Foreign buyers of corporates included institutions worldwide, but especially those in Europe and the U.K. looking for extra yield unavailable in their home markets. Non-U.S. investors now own more than 20 percent of outstanding U.S. corporate bonds. TIPS, Emerging Markets and High Yield Outperform in 2004 The following summarizes fixed income sector returns: • Mortgages outperformed like-duration Treasuries during the fourth quarter of 2004 and for the full year. Mortgages continued to benefit from strong institutional demand for "carry'', or the excess yield mortgages provide above short-term borrowing costs. Low volatility in financial markets overall also supported mortgage returns. • Investment grade and high yield corporate bonds outpaced Treasuries during the quarter and the year. Investors anxious to boost yield poured into the corporate bond market, bidding up the value of the bonds and lowering companies' borrowing costs. • Gains in bonds were not restricted to income-oriented or lower quality assets. Real return bonds outperformed Treasuries for the quarter and were among the best performing fixed income sectors for the full year. Real yields on longer maturity TIPS fell as much as 40 basis points for the full year. • Emerging market bonds continued their strong performance of the last several years, outpacing a11 other bond sectors for the final quarter and the full year. In addition to improving credit fundamentals within EM countries, the EM asset class benefited from a relatively benign U.S. Treasury market and robust commodity prices for most of the year. • Among government bond markets worldwide, European government bonds outpaced Treasuries by a wide margin. European bond returns did not face the same headwinds as did U.S. bonds from the Fed's tightening cycle. Performance Attribution: Long Term Portfolio The Long-Tenn portfolio that PIMCO manages on behalf of Orange County Sanitation District turned in a 0.32 percent return over the quarter, lagging the Merrill Lynch 1-5 year Government Corporate Index by l 7 basis points. This portfolio's performance was due in part to the following factors: • Your portfolio outperformed its benchmark for the quarter and the year 2 PIM C 0 Book Page 36 • PIM CO focused on quality, value and prudent diversification in an environment where core bond sectors presented limited buying opportunities • Interest rate strategies were largely neutral; below-index duration was positive during the quarter as U.S. rates rose, but an emphasis on shorter maturity issues modestly detracted from quarterly returns • A mortgage emphasis helped returns as low volatility and strong bank demand supported these assets; mortgage security selection also added to returns • A corporate underweight was negative as investors around the world were drawn to corporates for their extra yield • A tactical allocation to real return bonds added value; TIPS outperformed nominals by a wide margin as real yields fell Liquid Portfolio The Liquid portfolio that PIM CO manages on behalf of Orange County Sanitation District turned in a 0.44 percent return over the quarter, matching the performance of the 3-month Treasury Bill Index. This portfolio's performance was due in part to the following factors: • Your portfolio performed near its benchmark for the quarter but outperformed for the year • Near-benchmark duration was neutral for performance • Modest exposure to maturities longer than those in the benchmark helped returns by producing extra yield and generating gains via "roll down" • Corporate exposure was positive as investors around the world were drawn to corporates for their extra yield Economic Outlook: Global Economic Growth Will Slow Over Next Few Quarters Global growth will slow this year as the U.S. recovery cools and Europe and Japan prove unable to pick up the slack. Higher unit labor costs and a weaker dollar will create inflationary pressure, but lingering overcapacity worldwide will limit this effect over a cyclical time frame. The yield on the benchmark 10-year Treasury will range between 4 and 4½%, with the risk of a 25 basis point breakout on the high side. Important aspects of our outlook are: • Headwinds to U.S. Growth --Slack in the U.S. economy is closing but growth will be constrained by: I) removal of accommodative monetary and fiscal policy, as the Federal Resetve tightens and fiscal stimulus fades; 2) a moderating housing cycle; 3) relatively modest corporate investment; and 4) a lack of pent-up consumer demand combined with a heavy consumer debt burden. 3 PIM C 0 Book Page 37 • Vendor Financing for U.S. Consumption -With its low savings rate, the U.S. must rely on foreign lenders, mainly Asian central banks, to finance its proctigious consumption and the trade deficit that accompanies it. In the short run, this game wil1 go on, since it mitigates appreciation of the Chinese and Japanese currencies versus the dollar and sustains export-led growth in those cow1,tries. PIMCO is skeptical, however, that China and Japan will continue to provide such financing on agreeable terms over the long run. In fact, purchases of U.S. bonds by Asian buyers may already be near their peaks. A marginal decline could occur in 2005 in conjunction with an upward adjustment of China's currency. The result would be upward pressure on U.S. rates and further weakening of the dollar. • Europe and Japan To Lag -Europe will not add much to global growth. The European Central Bank has been reluctant to cut rates to stimulate domestic demand; exports are vulnerable to a strong euro; and business and consumer confidence remain weak. Japan's contribution to growth will also lag that of the U.S. Japan's export-led recovery will be constrained as China moves to cool down its economy to curtail inflation. • Emerging Markets Add Stability -After painful currency and financial crises in the late l 990s, many EM economies opted for reform and restructuring. The results have been impressive: an increasing share of global GDP, accumulation ofrecord currency reserves and growing trade surpluses. Identify Value As Most Bond Sectors Grow More Expensive PIMCO will stay defensive and look for value in an environment where interest rates are low and core bond sectors have continued to richen. Tactical flexibility will be critical in this setting, such as shifting between U.S. and non-U.S. bonds or between market sub-sectors within the U.S. Key strategies will include: • Duration -Duration targets will be modestly below the benchmark overall. This strategy will include below market interest rate exposure in the U.S. v.rith a long duration posture (where permitted) in Europe. A strong currency and slow growth will temper inflation and interest rate risk in Europe compared to the U.S. The European exposure will focus on intermediate maturities since shorter maturities already price in the potential for eventual easing by the ECB. • Yield Curve -PIMCO will focus on shorter maturities in the U.S. as we expect the Federal Reserve to continue its measured pace of tightening, stopping in this cycle at a federal funds rate of 2½% to 3%. Short maturities still offer value since their yields overestimate the likely extent of the Fed's tightening. Taking exposure to short-term rates via forward contracts offers the potential for gains so long as interest rates rise less than .markets expect. 4 PIM C 0 Book Page 38 • Retain Underweight of Core U.S. Sectors -Investors stretching for extra "carry", or yield in excess of currently low short-term borrowing costs, have bid up values of mortgages and corporate bonds to frothy levels. While security selection in mortgages and corporates offers some opportunity to add value, these sectors overall represent an unfavorable trade-off between risk and reward. • Out-of-Index Allocations -The balance of risk and reward is more appealing outside the core sectors. Real return bonds should outperform nominal bonds in an environment where the Fed will keep real yields low to stimulate the economy. Longer-term municipal bonds offer attractive yields versus Treasuries in comparison with their historical relationship and present less credit risk than corporates. Emerging market issues still offer value, as credit upgrades should continue in light of growing trade surpluses and increasing currency reserves in many of these economies. • Modest Currency Exposure -Modest exposure to the yen and select emerging market currencies (where permitted) will be an effective way to hedge against expected downward pressure on the U.S. dollar. A weak dollar is likely over a secular time frame because of the huge and growing U.S. current account deficit. Strategy: The following list highlights the strategies that will be used in the Long Term portfolio in the corning months: • Stay defensive and look for value as interest rates are low and core bond sectors are fully valued; tactical flexibility will be essential in this environment • Target duration below-index to limit risk from higher rates • Retain emphasis on shorter maturities, which offer value since their yields overestimate the likely extent of the Fed's tightening • Underweight corporates as investors stretching for yield have bid up valuations to frothy levels • Retain mortgage emphasis to benefit from relatively attractive yields; seek value in coupon selection • Hold TIPS, which should outperform nominal bonds as the Fed seeks to keep real yields low to stimulate the economy The following list highlights the strategies that will be used in the Liquid portfolio in the coming months: 5 PIM C 0 Book Page 39 Book Page 42 :; ·, Orange County Sanitation District Investment Transactions and Balances in the State of Carifornia Local Agency Investment Fund December 31, 2004 Par Value Book Value Market Value Balance December 1, 2004 $26,408,111 $26,408,111 $26,408,111 Deposits: 12/10/2004 18,700,000 18,700,000 18,700,000 12/21/2004 12,800,000 12,800,000 12,800,000 Total Deposits 31 ,500,000 31,500,000 31,500,000 Withdrawals: 12/2/2004 (3,700,000) (3,700,000) (3,700,000) 12/3/2004 (4,000,000) (4,000,000) (4,000,000) 12/8/2004 (2,600,000) (2,600,000) (2,600,000) 12/16/2004 (3,800,000) (3.800,000) (3,800,000) 12/20/2004 (3,900,000) (3. 900,000) (3,900,000) 12/22/2004 (2,700,000) (2,700,000) (2,700,000) 12/30/2004 (5,700,000} (5,700 ,000) (5,700,000) Total Withdrawels ( 26.400, 000} (26,400 ,000} (26.4 DO ,000) Balance December 31, 2004 $31,508,111 $31,508,111 $31,508,111 Book Page 45 Rate Yield 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 2.13 Book Page 46 Asset Summary -~0=••7 Bue Currency: USD by Asset Type with Sectors Alternate Bue Currency: Evbenp Rate: F__Qrl_!~ OPBR-PIIICO -OC81'075 '.!_ 1102 -J_2f31[2004 Statua:~AL Net Unrealized Coat Market Value %of Gain/Loa Description Shares Par Base Total Bue CASH• CASH EQUJVALEmTS U.S. DOLLAR CASH -12,300,000.00 -12,300,000.00 -16.83% 0.00 INTEREST 147,549.55 147,549.55 0.20"/o 0.00 CERTIFICATES OF DEPOSIT -DOMESTIC 3,000,000.000 3,000,000.00 3,000,000.00 4.10"/o 0.00 FED HM LOAN BNK -LESS THAN 1 YR 11,600,000.000 11,537,235.01 11,537,235.01 15.78% 0.00 FEDERAL HOME LOAN MORTGAGE -LESS THAN 1 14,500,000.000 14,409,534.17 14,409,534.17 19.71% 0.00 FNMA ISSUES -LESS THAN lYR 13,600,000.000 13,523,939.77 13,523,939.77 18.50% 0.00 MUTUAL FUNDS 12,447,932.740 12,447,932.74 12,447,932.74 17.03% 0.00 REPURCHASE AGREEMENTS 12,300,000.000 12,300,000.00 12,300,000.00 16.83% 0.00 TREASURY BILLS -LESS THAN lYR 9,000,000.000 8,906,337.09 8,906,337.09 12.19% 0.00 CJ U.8. DOLLAR 76,447,932.740 63,972,528.33 63,972,528.33 87.53% 0.00 0 0 ::,;-CASH • CASH EQUIVALEJITS 76,447,932.740 7J 63,972,528.33 63,972,528.33 87.53¾ o.oo Q) co nXBD IRCOME SECURITIES (1) .i:,.. U.S. DOLLAR -.J BANKJNG & FINANCE 5,800,000.000 5,921,546.50 5,852,754.50 8.01% -68,792.00 U.S. GOVERNMENTS 3,300,000.000 3,261,060.00 3,264,855.00 4.47% 3,795.00 u .e. DOLLAR 9,100,000.000 9,182,606.50 9,117,609.50 12.47% -64,997.00 FIXED mcoME SF.CURITIES 9,100,000.000 9,182,606.50 9,117,609.50 12.47% -64,997.00 TOTAL ASSETS -BASE: 85,547,932.740 73,155,134.83 73,090,137.83 100.00% -64,997.00 1 Workbench ------~°::] Asset Summary Bue Currency: USD by Asset Type with Sectors Alternate Bue Currency: Ela:bange Rate: LONG TB.RM OPBR-PIJICO -OCSl"07522202 __ 12/31/2004 81:ataa: FIRAL Net Unrealized Cost Market Value %of Gain/Lou Description Shares Par Base Total Base CASH II CASH EQUIVALENTS U.S. DOLLAR PENDING TRADES -61,212, 153.45 -61,212, 153.45 -16.63% 0.00 INTEREST 3,475,402.28 3,475,402.28 0.94% 0.00 CERTIFICATES OF DEPOSIT -DOMESTIC 10,000,000.000 9,995,500.00 9,995,500.00 2.72% 0.00 COMMERCIAL PAPER -DISCOUNT 500,000.000 496,600.00 496,600.00 0.13% 0.00 FED HM WAN BNK -LESS THAN 1 YR 21,000,000.000 20,982,132.25 20,982,132.25 5.70"/o 0.00 FNMA ISSUES -LESS THAN lYR 500,000.000 496,878.19 496,878.19 0.14% 0.00 MUTUAL FUNDS 1,406,732.290 1,406,732.29 1,406,732.29 0.38% 0.00 TREASURY BILLS -LESS THAN lYR 16,000,000.000 15,843,937.78 15,843,937.78 4.30% 0.00 U.S. DOLLAR 49,406,732.290 -8,514,970.66 -8,514,970.66 -2.31% 0.00 OJ 0 CASH Ill CASH EQUIVALENTS 49,406,732.290 -8,514,970.66 -8,514,970.66 -2.31% 0.00 0 ,_.. -0 FIXED IRCOIIE SECURITIF.8 ll) co (1) U.S. DOLLAR ~ ABS -AIRPLANE RECEIVABLES 1,600,000.000 1,600,000.00 73,728.00 0.02% -1,526,272.00 co ABS -HOME EQUITY 640,256.220 640,256.22 640,456.62 0.17% 200.40 BANKING & FINANCE 16,000,000.000 15,931,817.50 16,012,528.00 4.35% 80,710.50 COLLATERALIZED MORTGAGE OBLIGATION 1,920,261.520 1,920,261.52 2,037,877.54 0.55% 117,616.02 FHLMC MULTICLASS 821,693.890 822,569.26 821,332.34 0.22% -1,236.92 FHLMCPOOLS 58,264.570 56,844.36 59,922.43 0.02% 3,078.07 FNMA POOLS 52,257,109.350 53,156,581.05 53,153,022.95 14.44% -3,558.10 FNMAREMIC 271,370.410 276,797.82 271,258.39 0.07% -5,539.43 GNMA MULTI FAMILY POOLS 3,533,391.370 3,521,683.51 3,577,203.04 0.97% 55,519.53 GNMA SINGLE FAMILY POOLS 574,128.960 601,952.53 608,091.39 0.17% 6,138.86 INFLATION INDEXED SECURITIES 35,590,310.000 35,607,229.79 38,746,217.13 10.53% 3,138,987.34 INSURANCE 1,600,000.000 1,594,032.00 1,625,488.00 0.44% 31 ,456.00 PVT PLACEMENTS -MORE THN 1 YR 752,000.000 826,199.84 826,199.84 0.22% 0.00 U.S. AGENCIES 43,884,320.240 44,845,125.44 44,506,503.63 12.09% -338,621.81 U.S. GOVERNMENTS 211,085,923.500 213,585,997.32 211,792,671.94 57.55% -1, 793,325.38 UTILITY -ELECTRIC 1,750,000.000 1,743,840.00 1,801,397.50 0.49% 57,557.50 U.S. DOLLAR 372,339,030.030 376,731,188.16 376,553,898.74 102.31% -177,289.42 1 Workbench CJ 0 0 ;;,;- -a Q) (0 Cl) .ll>, CD LONG T.ERII OPBR-PDfCO -OCSF07522202 Description FIXED IRCOIIB SECURITIES TOTAL .ASSETS · BABB: Asset Summary by Asset Type with Sectors Report ID: GL8251 Bue Cunency: USD Alternate Bue Currency: Exchange Rate: 12/lli~004 ________________ ~Sta=tua:nRAL __ Net Unrealized Cost Market Value %of Gain/Loss Sharee Par Bue Bue Total Bue 372,339,030.030 376,731,188.16 376,553,898.74 102.31% -177,289.42 421,745,762.320 368,216,217.SO 368,038,928.08 100.00% -177,289.42 2 Workbench YLDANAL YIELD ANALYSIS PAGE 1 OCSF07511102 2004/12/31 RUN DATE 01/05/05 DISTRICT: LIQUID OPERATING RUN TIM;E 11.23.17 = -==---===== -= -:::i:==::-=·---=-=====c::i::::-. -- PAR VALUE YTK AT CURRENT MOODY MARI(ET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOR YIELD S-P PRICE MARKET VALUE % TOTAL -----------...-----------------------------·------------------------------------- CASH & CASH EQUIVALENTS 1,600,000.00 BAN:K OF AMERICAN NA INSTL C/D .ooo 2.260 100.000 1,600,000.00 2.10 06050GGS3 2,260\ 03/09/2005 DD 11/16/04 1,600,000.00 1.88 1,000,000.00 FEDERAL HOKE LN BK CONS DISC N .ooo .ooo P-1 99.521 995,215.00 1.30 3l3395AW6 MAT 01/21/2005 A-1+ 995,215.00 1.17 1,600,000.00 FEDERAL HOME LN BR CONS DISC .ooo .ooo P-1 99.S99 1,593,586.67 2.09 313385BJ4 MAT 02/02/200S A-1+ l,S93,586,67 1.87 6,000,000.00 FEDERAL HOME LN B.K CONS DISC .ODO .ooo P-1 99.434 S,966,026.67 7 .83 313385CA2 MAT 02/18/2005 A-1+ 5,966,026.67 7 ,00 3,000,000.00 FEDERAL HOME LN BK CONS DISC .000 ,000 P-1 99,414 2,982,406.67 3,91 co 31338SCV6 MAT 03/09/2005 A-1+ 2,982,406.67 3 .50 0 0 6,000,000.00 FEDERAL HOME LN MTG CORP DISC .ooo .ooo P-1 99,457 5,967,391.67 7.83 """ 313397BQ3 MAT 02/08/2005 A-1+ 5,967,391.67 7 .00 "1J Q) 6,000,000.00 FEDERAL HOME LN MTG CORP DISC .000 co ,000 P-1 99.402 5,964,142.50 7.83 CD 313397DB4 MAT 03/15/2005 A-1+ 5,964,142.50 7,00 CJ'1 0 2,soo,000.00 FEDERAL HOME LN MTG CORP DISC .ooo .ooo P-1 99,120 2,478,000.00 3,25 313397DY4 MAT 04/05/2005 A-1+ 2,478,000.00 2.91 1,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .ooo .ooo P-1 99 ,579 995,787,78 1.30 313589BJ1 MAT 02/02/2005 A-1+ 995,787.78 1.17 4,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .ooo .ooo P-1 99.442 3,977,675.83 5 .22 313589BYB KAT 02/16/2005 A-1+ 3,977,675.83 4.67 1,600,000.00 FEDERAL NATL MTG ASSN DISCONT .ooo .ooo P-1 99,455 1,591,285.33 2.09 3135B9CF8 MAT 02/23/2005 A-1+ 1,591,285.33 1.87 6,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .ooo .ooo P-1 99,417 5,965,040,83 7.83 313589CN1 MAT 03/02/2005 A-1+ 5,965,040.83 7,00 1,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT ,000 .ooo P-1 99.415 994,150.00 1.30 313589CV3 MAT 03/09/2005 A-1+ 994,150,00 1.17 1,400,000.00 HSBC BANR USA INSTL C/D .ooo 2.335 100.000 1,400,000.00 1.83 40428AGZ4 2.335% 03/23/2005 DD 11/23/04 1,400,000.00 1.64 ·••. · ... ··-:;-·,:.:,· ·•.,• . . •: YLDANAL YIELD ANALYSIS PAGE 2 OCSF07511102 2004/12/31 RUN DATE 01/05/05 DISTRICT I LIQUID OPERATING RUN TIME I 11.23.17 ===~:=====:=~~ ~=---c--=-==--==-=-==---~--~=--== PAR VALUE YTM AT CURlU!NT MOODY MARKET TOT-AL COST/ \ TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL --------------------------··-·------------------------------- 9,000,000.00 u s TREASURY BILL .ooo .ooo P-1 98.959 8,906,337.09 11.69 912795SL6 DUE 04/28/2005 DD 10/28/04 A-1+ 8,906,337.09 10,45 12,300,000.00 LEHMAN CAT 1 REPO REPO .ooo 1.650 100,000 12,300,000.00 16,15 99429T630 01. 650% 01/03/2005 DD 12/31/04 12,300,000.00 14.43 12,447,932.74 DREYFUS TREASURY CASH MGMT .ooo 1.799 AAA 100.000 12,447,932,74 16,35 996085247 AAA 12,447,932.74 14 .60 ------------------------------ TOTAL CASH & CASH EQUIVALENTS .ooo ,268 76,124,978,78 100.00 76,124,978,78 89. 33 FIXED INCOME SECURITIES OJ 3,000,000.00 ASSOCIATES CORP NORTH AMER SR .ooo 6 ,522 AAl 101.578 3,112,350,00 33.42 0 0 046003FF1 6.625\ 06/15/2005 DD 06/09/95 AA-3,047,340.00 3,57 7'" "'ti 150,000.00 BANKAKERICA CORP MTN SR 00150 .ooo 7,019 AA2 101.515 153,652.50 1.67 DJ 06605LGFO 7,125\ 05/12/2005 DD 05/12/95 A+ 152,272.50 ,18 (0 CD 01 2,soo,000.00 GENERAL ELEC CAP MTN ITR 00526 ,000 2,614 AAA 100.031 2,502;460,00 27.42 ~ 36962GXX7 VAR RT 03/15/2005 DD 03/20/02 AAA 2,500,775,00 2 .93 1so,ooo.oo NOR'ilEST FINL INC NT .ooo 7.482 Ml 101.578 153,084,00 1.67 669383DXG 7.600\ 05/03/2005 DD 05/03/00 1\A-152,367,00 .18 3,300,000.00 US TREASURY BILL .ooo .ooo AAA 98.935 3,261,060.00 35.80 912795SSl 0.0001 06/09/2005 DD 12/09/04 AAA 3,264,855 .00 3.83 ---------------------------------TOTAL FIXED INCOME SECURITIES ,000 4.664 9,182,606.50 100.00 9,117,609,50 10,69 ---------------------------TOTAL .ooo .487 85,307,585.28 100.00 85,242,588.28 100.00 == ========= CD 0 0 ~ -u ru (0 CD c.n N YLDANAL OCSF07522202 DISTRICT: LONG-TERM OPERATING :•· YIELD Allll.LYSIS 2004/12/31 ·:·-: •,: -:•:•.:•··-•-···-:-·_,: __ PAGE RUN DATE RUN TIHE ] 01/05/05 11.23.17 ------m :c------a---------i:-~· _c,:..rn-----~.:a.-~::...::::::-c.--=:-::.~~==::----=:....=:c:==-----c=-=-=--=-==-=----- PAR VALUE SECURITY ID SECURITY DESCRIPTION CASR & CASH EQUIVALE!ITS 10,900,000.00 FEDERAL HOME LN BK CONS DISC 313385ACO KAT 01/03/2005 10 11001 000,00 FEDERAL HOME LN BK CONS DISCH 313385BD7 MAT 01/28/2005 5001000, 00 FEDERAL NATL MTG ll.SSIJ DISCOUNT 3135B9DS9 MAT 03/30/2005 soo,000.00 GEHERAL ELEC CAP DISC 36959RP43 02/04/2005 10,000 1000.00 UDS AG STAMFORD BRH INSTL C/D 90261GE47 VAR RT 07/05/2005 DD 07/02/04 16,000,000.00 US TREASURY BILL 912795SG7 0,0001 03/31/2005 DD 09/30/04 1,406,732.29 DREYFUS TREASURY CASH HGHT 996085247 ,OD BSDT-LATE HONEY DEPOSIT ACCT 996087094 TOTAL CASH t, CASH EQUIVALENTS FIXED INCOME SECURITIES 752,000.00 AIG SUNAHERICA GLOBAL REGS U00907AAO 5,850% 08/01/2008 DO OB/08/01 22,0001 000.00 COMMIT TO PUR FNMA SF MTG 01F050411 5,000\ 01/01/2020 DD 01/01/05 41 000,000,00 COMMIT TO PIJR FNMA SI' HTG 01F052615 5.500\ Ol/01/2035 DD 01/01/05 1,soo,000.00 CIT GROUP INC NEW SR NT 125581AF5 VAR RT 09/22/2006 DD 09/23/03 YTH AT BOOK .ooo .000 .ODO .ooo .000 .000 .000 .ooo .ooo .ooo .ooo .ooo .ooo CURRENT MOODY YIELD S-P ,000 .ooo .ooo 2.054 2. 471 .000 1.799 .000 .430 5.325 4.922 5.419 2.909 P-1 A-1-1- P-l A-1+ P-1 A-1+ P-1 P-1 A-H AAA AAA AAA AAA A2 A MAru:.ET PRICE n.990 99,834 99,376 99.320 99.955 99 .025 100.000 .000 109,867 101.578 101. 500 100.437 TOTAL COST/ MRI\ET VALUE 10,898,864.58 10,898,864.58 10,083,267.67 10,083,267.67 496,878.19 496,878.19 496,600.00 496,600.0D 9,995,500.00 9,995,500.00 15,843,937.78 15,843,937.78 1,406,732.29 1,406,732.29 .oo .oo 49,221,780.51 49,221,780.51 826,199.84 826,199 .84 22,367,812,50 22,347,186.40 4,064,943.75 4,060,000.00 1,507,005.00 1,506,555.00 % TYPE \ TOTAL 22, 14 2.56 20.48 2.37 1.00 .12 1.00 .12 20.30 2.35 32,18 3,72 2,85 .33 .oo .00 100.00 11.57 ,21 ,19 5.93 5,25 1.07 ,95 .40 .35 YLDANAL YIELD I\NALYSIS PAGE 4 OCSF07522202 2004/12/31 RUN DATE 01/05/05 DISTRICT: LONG-TERM OPERATING RUN THIE I 11.23.17 ---==--=====~-==-~---=------=--=2::-~m--:-:--:=--~nKss~•~:----=------------~----:-------------------------~~----------------- PAA VALUE YTH AT CURRENT HOODY HAR.KET TOTAL COST/ ' TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD s-P PRICE MAMET VALUE ' TOTAL ----------------------------------------------------------------- 10,000,000.00 FEDERAL HOME LN MTG CORP MTN .000 4.031 AM 99.228 9,993,100.00 2,63 3128X3WY5 4 .000\ 09/22/2009 OD 09/22/04 AAA 9,922,754.00 2. 33 31 500,000.00 FEDERAL HOME LN BK CONS BOS .ooo 7.085 AAA 100.567 3,732,225.00 .93 3133HAUN7 7,1251 02/15/2005 OD 02/08/00 AAA 3,519,860.75 .83 58,264.57 FHLMC GROUP 178-6064 .000 3,883 AAA 102,845 56,844.36 ,01 31348SWZ3 6, 3841 01/01/2028 DD 12/01/97 AAA 59,922,43 .01 11,Jso,000.00 FEDERAL NATL MTG ASSN DEBS ,000 s.101 AAA 102,923 11,521,271.50 3.10 31359MJX2 5,250\ 06/15/2006 DD 06/22/01 AAA ll,681,735.53 2, 14 658,108.58 FNHA POOL J0254510 .000 4.905 AAA 101.930 677,851.83 .17 l1371KVB4 5,0001 11/01/2017 DD 10/01/02 AAA 670,808.04 ,16 141,530.48 FNKA POOL 10254631 .ooo 4,905 AM 101.930 145,780.52 ,OJ CJ 31371KY47 s.ooo, 02/01/2018 DD 01/01/03 AAA 144,265.66 ,03 0 130,243,30 0 126,449,82 FNKA POOL 10254760 .ooo 4,907 AAA 101. 898 .03 ;,:::-31371K5V9 5.0001 06/01/2019 DD 05/01/03 AAA 128,850.3!1 .03 "'1J Q) 57,273,82 FtlMA POOL J0254866 .ooo 4,907 AAA 101.898 SB,'-'92,04 .01 (0 CD 31371LCB3 s.0001 09/01/2018 DD 08/01/03 AAA 58,361.13 .01 01 w 304,919,14 FNMA p.QOL 10254953 .ooo 4. 911 AAA 101.BOS 308,825.93 .08 31371LE21 s .ooo, 11/01/2018 DD 10/01/03 AAA 310,421.99 .07 823,779.36 FNMA POOL 10254987 .ooo 4.915 AAA 101. 729 834,334.03 .22 31371LF46 5,000\ 12/01/2018 DD 11/01/03 AAA 838,016,76 .20 144,290.76 FNMA POOL J0323980 .ooo s. 713 MA 105. 016 150,648,57 .04 31374T2HO 6,0001 04/01/2014 DD 09/01/99 AAA 151,527.84 .04 24,182.97 FNMA POOL 10357328 .ooo 4.911 AAA 101. 818 24,908.46 .oo 31376J4H8 5.000\ 01/01/2018 DD 01/01/0J AAA 24,622,72 .01 1,253,699 .06 FNMA POOL f0357430 .ooo 4.907 MA 101. 898 1,267,803.17 .33 31376KA71 5.000\ 09/01/201B DD 09/01/03 AAA 1,277,499,78 ,30 41,444 .18 FNMA POOL 10456482 ,000 s. 713 AAA 105.0H 43,270.30 .01 313B1CCT2 6.0001 02/01/2014 DD 02/01/99 AAA 43,522,86 .01 99,586.82 FNMA POOL 10509649 .ooo s. 713 AAA 105,016 103,974.86 .02 31383QEWO 6.000\ 09/01/2014 DD 09/01/99 AAA 104,581.72 .02 ,,.... .··.:· YLOANAL YIELD ANALYSIS PAGE s OCSF07522202 2004/12/31 RUN DATE 01/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 11.23.17 ~~===-=-==-==~=~~-=--~--:cc--=--m-amcc 4# -=~·-~~~==i::.._;;----=--------ct--------------------·~----"==--- PAR VALUE YTK AT CURRENT MOODY MARKET TOTAL COST/ I TYPE SECURITY IO SECURITY DESCRIPTION BOOK YIELD S-P PRICE MAMET VALUE I TOTAL -------------------------------~------------------------------------------ 112,247.99 FHKA POOL f0535451 .ooo 5. 713 AAA 105.016 117,193.81 .03 Jl384VZQ8 6.000\ 06/01/2015 DO 07/01/00 AAA 117,877 ,82 ,03 302,682.09 FNMA POOL f0555363 .ooo 4.905 AAA 101.930 311,762.54 .OB 31385W5Yl 5.000\ 04/01/2018 DD 03/01/03 AAA 308,522.92 ,07 31,454.66 FNMA POOL 10555453 .ooo 4.905 AAA 101,930 31,857.68 .00 31385XBW6 s.ooo, 05/01/2018 DD 04/01/03 AAA 32,061.64 .01 251,079.58 FNMA POOL f0555545 ,000 4,905 AAA 101.930 258,611.98 .06 31385XES2 5,0001 06/01/2018 DD 05/01/03 AAA 255,924.64 .06 868,071.86 FNMA POOL 10555621 .000 4. 915 AAA 101,728 877,837.67 .7.3 3U85XG68 5,000\ 07 /01/2018 DD 06/01/03 AAA 983,074.77 .21 467,041.09 FNMA POOL f06B1309 .000 4,905 AAA 101.930 481,052.31 • 12 Jl391Y3S4 5.0001 02/01/2018 OD co 02/01/03 AAA 476,053.53 ,11 0 56,921.66 FNMA POOL 10681334 .ooo 4 ,905 MA 101.930 58,629,31 .01 0 :,-31391Y4Tl 5.0001 02/01/2018 DD 01/01/03 AAA 58,020.07 .01 ""C D> 271,370,41 FNMA GTO REMIC P/T 02-76 PD .ooo 5.002 AAA 99 ,959 276,197.82 .07 (0 CD 31392FKF3 S .0001 0B/25/2022 DD 10/01/02 AAA 271,258.39 .Oli 0, 307,372.19 FUMA POOL t0684908 .000 ~ 4,905 AAA 1D1,930 311,310.41 .oe 314 OOD3Rl 5.0001 06/01/201B DD 05/01/03 AAA 313,303.52 .07 167,196.92 F!IKA POOL 10685200 .ooo 4,905 AAA 101.930 169 ,339.15 .04 31400EGH7 5.000%: 03/01/201B OD 03/01/03 AAA 170,423,30 .04 28,B48,65 FNMA POOL f0685665 .ooo 4,905 AAA 101.930 29,714, 11 .00 314 OOEW22 s.0001 02/01/2018 DO 02/01/03 AAA 29,405.34 .01 254,590.62 FNMA POOL #0696318 .ooo 4,905 AAA 101.930 262,228.34 .06 31400FPB7 s.0001 OJ/01/2018 DD 03/01/03 AAA 259,503.43 .06 100,454.07 FNMA POOL #0688739 ,000 4,907 AAA 101.899 103,467.69 .02 31400JEL9 s.0001 06/01/201B DO 06/01/0J AAA 102,361,13 .02 83,407.40 FNMA POOL t06B9859 .ooo 4. 907 AAA 101.999 84,476.06 .02 31400KHG9 S.000\ 05/01/2018 DD 05/01/03 AAA 84,990.84 .02 556,364.01 FNMA POOL f0693834 .ooo 4,905 AAA 101.930 573,054.92 ,15 31400PY74 5.000%: 03/01/2018 OD 03/01/0] AAA 567,100.11 ,13 · .. ·. .,,. •'• .. ,.•.: YLDANAL YIELD AIIALYSIS PAGE 6 OCSF07522202 2004/12/31 RUN DATE Ol/05/05 DJ STRICT: LONG-TERM OPERATIKG RUN TIME I 11. 23. 17 =---~-=~~-=-~Ul=a==~-~-·=--==--·=•• r--=:-·~~......u....z:.=-~===-:i:.=:.--=-=:!:::::::-=c~::::==:,==--=-=====-=--=--=·==::.=-==.=~--::, PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YlEI,O 5-P PRICE MARKET VALUE % TOTAL ------------------------------------------------------------------ 198,831.75 FNMA POOL •0695852 .ooo 4.905 AM 101.930 204,796, 70 .os 31400SBVO 5,000\ 05/01/2018 DD 05/01/03 AM 202,668.59 .os 671,983.39 FNMA POOL t0695889 .ooo 4,907 AM 101. 898 692,142.91 .18 31400SC23 s.ooot 05/01/2018 DD 05/01/03 AM 684,740.59 ,16 20,688.81 FNMA POOL 10697026 .ooo 4,905 AAA 101,930 21,309.49 .00 31400ILF2 5.000% 05/01/iOlB OD 04/01/0] AM 21,088.04 .oo 2041978,49 FNMA POOL t0702210 ,000 4 .915 AAA 101. 728 211,127.83 .05 31401ADP9 5.000'1 05/01/2018 DD 05/01/03 AAA 208,521.13 .05 122,766.23 FNMA POOL 10702328 .ooo 4. 905 AJ\A 101.930 124,339.17 .03 31401AHD2 5.000% 05/01/2018 DD 04/01/03 AAA 125,135.24 .03 255,479,44 FNMA POOL f0709148 .000 4,907 AM 101. 898 263,143.83 .06 OJ 31401HZM7 5.0001 06/01/2018 DD 06/01/03 MA 260,329.56 ,06 0 577,740,71 POOL J0709360 4.907 101.89B 0 FNMA .ooo MA 595,143.02 ,15 -;,::;-31401JB56 5,000'11 07/01/2019 DD 06/01/03 AAA 588,708.77 • 14 -u Q) 99,414.90 FIIMA POOL 10709826 .ooo 4,907 AAA 101,898 100,698.65 ,02 <O CD 31401JSP4 s.ooot 06/01/2018 DD 06/01/03 AAA 10:I,302,23 ,02 01 206,720.61 FHMA POOL f0709917 .ooo 4.905 AAA 101.930 209,369.21 ,OS 01 31401JVJ4 5.0001 06/01/2018 DD 06/01/03 AAA 210,709,68 .05 17,972.26 FNMA POOL 10709963 ,000 4,915 AAA 101.728 18,202,54 .oo 31401JWYO s.0001 06/01/2018 DD 06/01/03 AAA 18,282.88 .oo 547,080,41 FNMA POOL f0710235 .ooo 4,907 AAA 101 ,898 563,492.84 • 14 31401KBC8 5.000'1 06/01/2018 DD 06 /01/03 AAA 557,466.40 .13 15,008.63 FNHA POOL 10713344 .ooo 4,907 AAA 101,898 15,458.88 .oo 31401NP52 s.0001 06/01/2018 DD 06/01/03 AAA 15,293.56 .oo 236,631.34 FNMA POOL f0713365 .ooo 4,907 AAA 101.89B 239,663.18 .06 31401NQS1 5,000% 07/01/2018 DD 07/01/03 AAA 2H, 123.64 ,06 685,676,36 FNMA POOL 10720319 .ooo 4.907 AAA 101.898 694,461.59 ,18 31401WG45 5.0001 07/01/2018 DD 07/01/03 AAA 698,693.51 .16 1,984,790.31 FNMA POOL 10720369 ,000 4.915 AAA 101. 728 2,044,134,02 ,53 31401WJNO s.ooot 06/01/2018 DO 06/01/03 AAA 2,019,093.50 ,47 •,.· ·=······•:•··.:,:,:-;,:-:, ..... ·', •• ' ·-•• YLDANAL YIELD ANALYSIS PAGE 9 OCSF07522202 2004/12/31 RUN DATE t 01/05/05 DISTRJCTI LONG-TEl!UI OPERATING RUN TIME 11.23,17 ~.:::-=.=:3::::=e-=-=:::!:c:::r-r:::~-==--:::=-::m-=~~=• ::n=a-..=-~-=:--:......--=-=-~------=-=---=~t::=·:-.--=-:=:==-----=-=-==-------===-=~~~4.:.--=== PAR VALUE YTH AT CURRENT MOODY HARXET TOTAL COST/ \ TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE ' TOTAL ---M--------------------------------------------------------------------------- 2,025,101.56 FNMA POOL f0750377 .ooo 4,917 .AAA 101.696 2,051,048.17 .54 31403JUA2 5.0001 11/01/2018 DD 11/01/03 AAA 2,059,451,29 ,48 1,793,952.02 FNHA POOL 10750380 ,000 4. 917 MA 101,696 1,916,937.05 ,48 31403JUD6 s.0001 11/01/2018 DD 11/01/03 11M 1,824,391.00 .43 166,04S,33 FUMA POOL 10750445 .ooo 4.917 AAA 101.696 169,172.79 .04 ll403JWE2 5.0001 11/01/2018 DD 11/01/03 AAA 168,961.79 .04 756,684.52 FNMA POOL f0751960 .ODO 4.915 AAA 101,728 766,379.55 .20 31403LHH1 5,0001 12/01/2018 DD 11/01/03 AAA 769,762.32 .18 808,660,13 FNMA POOL 10753425 .OOQ 4.911 MA 101.805 818 ,010 .25 .21 ll403NA23 5,0001 11/01/2018 DD 11/01/03 AAA 8231 2S3.94 , 19 581,719.88 FNMA POOL 10755165 .ooo 4. 911 AAA 101. 805 589,173.17 ,15 31403Q6A3 S,000\ 12/01/2018 DD OJ 11/01/03 AAA 592,218,12 .14 0 897,613.90 FNMA POOL t07 56372 .000 4 .911 AAA 101,805 907,992.55 0 .24 7'" 31403SJR8 s.ooo, 11/01/2018 DD 11/01/03 AAA !H3,813.0S .21 -u D> 9,514.42 GHHA POOL 10421389 .ooo 6,128 MA 106.070 9,985.69 .oo (0 Cl) 36206UC23 6,500\ 04/15/2026 OD 04/01/96 AAA 10,091.97 .00 0, 19,830.79 GNMA POOL 10449851 .000 6.173 AAA 105.301 20,913.04 .oo -..J 36208FWLO 6.500\ 01/15/2028 DO 01/01/98 AAA 20,002 .03 .oo 32,712.24 GNMA POOL 1D466845 .ooo 6 .132 AAA 106.008 34,332.52 .oo 367.09tlTA6 6.500\ 06/15/2028 00 06/01/98 AAA 34,671.53 .01 110,880.13 GNMA POOL t0468052 ,000 6,133 .AAA 105,977 116,372.16 ,03 36209CSH4 6.500\ 07/15/2028 DO 07/01/98 AAA 117,506.95 .OJ 137,259.50 GtlMA POOL f04 76041 .ooo 6.143 AAA 105,805 143,843.68 .OJ 36209HZE7 6,5001 06/15/2028 DD 06/01/98 AAA 145,226.99 ,03 120,625.21 GNHA POOL f0478626 .ooo 6,133 AAA 105,977 126,411.45 ,OJ 36209QVT9 6.500\ 01/15/2029 DD 01/01/99 AAA 127,834.45 .03 28,774.61 GNMA POOL t0480598 .ooo 6. 133 AAA 105.977 30,154.88 .oo 36209S3F6 6,5001 10/15/2028 DD 10/01/98 AAA 30,494.34 .01 8,392,02 GNMA POOL f0512235 .ooo 6. 133 MA 105.977 8,807.68 .oo 36211GBC6 6 .500\ 11/15/2029 DD 11/01/99 AAA e,893.57 .oo '• I I f •,•,• :,••,• ,•·-:·-::.•.;-·····, '~. • .. YLDANAL YIELD ANALYSIS PAGE 9 OCSF07522202 2004/12/31 RUN PATE 01/05/05 DISTRICT: LONG-TERM OPERATING RUN TINE I 11.23.17 ==~==~=======================~====c=========~==~===~:c~~=~~=================~=========~=======================~=====~==~===== PM VALUE YTM AT CURRENT MOODY MARRET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARJl:ET VALUE % TOTAL ------------------------------------------------------------------------ 106,140.04 GNMA POOL fOS14326 ,000 6 .133 AAA 105,977 111,231.43 .02 J6211JLF2 6,500% 07/15/2029 DD 07/01/99 AAA 112,493.56 .03 179,458,23 GNMA II POOL f0080395 ,000 3,321 AAA 101.432 177,831,89 ,04 36225CNH4 VAR RT 04/20/2030 DO 04/01/00 MA 182,027.26 ,04 1 ,622,802,93 GNMA II POOL t080408X .ooo ],327 AAA 101.431 1,606,321.33 .o 36225CN28 VAR RT 05/20/2030 DO 05/01/00 AAA 1,646,021.18 .39 1,359,989.47 GNMA II POOL f0090965 ,000 3,470 AAA 100,860 1,359,138.47 ,36 36225DCBB VAR RT 07/20/2034 DD 07/01/04 AAA 1,311,689.13 ,32 6,000,000.00 GEtlERAL ELEC CAP MTN tTR 00526 .ODO 2. 614 MA 100.031 6,002,544.00 1.59 36962GXX7 VAR RT 03/15/2005 DO 03/20/02 MA 6 ,001,860.00 1.41 3,500,000.00 GOLDMAN SACHS GRP MTN tTR00194 .ooo 2,276 AJ\3 100,187 3,507,850.50 .93 38141EJB6 VAR RT 10/27/2006 DO 10/29/03 JH 3,506,545.00 ,82 CJ 0 soo,000.00 GOLDMAN SACHS GRP MTN fTR00207 .ooo 2.421 Ml 100,328 800,000.00 .21 0 ;:,;-38141EJQ3 VAR RT 07/23/2009 DD 07/23/04 A+ 802,624,00 .19 -0 D) 3,200,000 .00 HORGAN STANLEY NT .ooo 3,897 AA3 99.437 3,149,248.00 ,84 (0 CD 61746BALO 3. 8751 01/15/2009 DO 01/13/04 A+ J,lBl,984,00 ,75 01 640,256,22 RESIDENTIAL ASSET 03-RSll AIIB .ooo 2.747 AM 100,031 640,256,22 .17 00 760985K83 VAR RT 12/25/2033 00 12/30/03 AAA 640,456.62 .15 2,985,923.50 SBA GTO DEV PJ\RTN 200l-20C 1 .ooo 5 ,889 AAA 107,655 2,985,923.50 .85 83l62CLJO 6,340% 03/01/2021 AAA 3,214,495.94 .75 1,no,261.52 SBA GTO PARTtl CTFS SBIC-PS 01 .ooo 6,257 MA 106.125 1,920,261.52 .54 9Jl641DD4 6.6401 02/10/2011 00 02/21/01 NR 2,037,977.54 .48 1,600,000,00 UNITED AIRLS PASSTHRU 01-1 C .ooo 148.242 WR 4.608 1,6001000,00 .01 909317BC2 6.8311 03/0l/20iO DO 08/22/01 A-73, 728,00 ,02 20,000,000.00 US TREASURY NOTES .000 5.870 AAA 106.469 22,620,312.50 5,65 9128272JO 06.2501 02/15/2007 00 02/15/97 AAA 21,293,800.00 5.00 3,549,330.00 US TREASURY INFLATION UIDEX NT .ooo l.327 AAA 108,969 3,95B,831,35 1, 02 9l2827lT7 3 ,625\ 01/15/2009 DO 01/15/98 AAA 3,867,669.41 . 91 15,151,240.00 US TREASURY INFLATION INDEX NT .ODO J.456 MA 112.110 16,716,600,11 4.51 9128274Y5 3.8751 01/15/2009 DD 01/15/99 MA 16,995,979,41 3,99 • ·.::•-·-·•:-: ··•-•.··-· ·.-•.•. ·-·-,•.•-··-:-;-::-·-. YLDANAL YIELD ANALYSIS PAGE 10 OCSF07522202 2004/12/31 RUN DATE Ol/05/0S DISTRICT: LONG-TERM OPERATING RUN TIME 11.23.17 ---=======================~==s:•~=ac=:====~==:====z=~=:•=~--=:~=========:=========~=======================================%=== PAR VALUE YTK AT CURRENT MOODY MARKET TOTAL COST/ \ TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MAMET VA.LUE I TOTAL ---------------------------------------------------------------------------- 3,900,000.00 US TREASURY NOTES .ooo S.60S JI.AA 102.594 4,298,149.14 I. 06 9128276N7 OS.7501 11/15/2005 DD 11/15/00 AAA 4,001,166.00 .94 17,600,000.00 US TREASURY NOTES .ooo 3.385 AAA 99.710 17,405,000.00 4.66 912828BT6 3,37S1 12/15/2009 DD 12/15/03 AAA 17,548,960.00 4.12 21,500,000.00 US TREASURY NOTES .ooo 2,757 AAA 99.760 27,463,4.69.63 7.28 912828CHO 2,7501 06/30/2006 DO 06/30/04 AAA 27,434,000.00 6, 44 49,000,000.00 US TREASURY NOTES .ooo 2.75B MA 99.710 49,103,927.41 12,97 912828CQ1 2.7501 07/31/2006 DO 07/31/04 AAA 49,957,9!)0.00 11.48 ss,300,000.00 U 5 TREASURY NOTES .ooo 2,398 AAA 99.030 55,048,031.25 14.. 54 912828CU2 2.375% 08/31/2006 DD 08/31/04. AAA 54,763,590.00 12,86 20,000,000.00 US TREASURY NOTES .ooo 2.88] AAA 99.720 20,717,574.59 5.50 co 912928DD9 2,875% 11/30/2006 DD 11/30/04 AAA 20,741,760.00 4.87 0 0 14,000,000.00 US TREASURY NOTES ,000 3.516 AAA 99.550 13,953,610,30 J.70 ;:,-- "1J 912B28DE7 3.5001 12/15/2009 DO 12/15/04 AAA 13,937,000.00 3.27 Ql co 1,1so,ooo.oo VIRGINIA ELEC & PWR 01 SER A .000 5,586 A3 1D2.937 1,743,840.00 .47 CD 927804ENO 5,750% 03/31/2006 OD 03/27/01 BBB+ 1,8011397,5D .42 u, (0 16,889,740.00 US TREASURY INFLATION INDEX NT 3,817 3,186 AAA 105.938 14,971,798,33 4.75 9 l28272K3 3.3751 01/15/2007 DD 01/15/97 MA 17,892,568.31 4,20 15,soo,000.00 FEDERAL NATL HTG ASSN DEBS S.967 7.084 AAA 100,573 16,154.,410,00 4.13 31359HFH1 7.1251 02/15/2005 DD 02/14/00 AAA 15,588,762.30 3. 66 B21,693.89 FHLMC HULTICLASS MTG SER EJ A 6.316 3.719 AAA 99,956 822,S69,26 ,21 3133TCE95 VAR RT OB/15/2032 DD 12/01/97 AAA 921,332.34 .19 498,064, 54 GNMA GTO REHIC TR 2000-9 Fff 6,320 2.eee AAA 100.670 498,064 ,54 .13 3837H4NX9 VAR RT 02/16/2030 AAA 501,401.57 .12 207,631.74 GNHA II POOL I0800!!8K 6,705 3.328 AAA 101. 404 212,173.69 .05 36225CC20 7.3751 06/20/2027 DD 06/01/97 AAA 210,545.96 .OS 163,510.00 GNHA II POOL f0080023 6,992 4,041 AAA 102,085 166,218.13 .04 36225CAZ9 VAR RT 12/20/2026 OD 12/01/96 AAA 166,919.51 .04 2,100,000.00 FEDERAL NATL MTG ASSN DEBS 7.113 5.935 AAA 111.621 2,030,133.00 ,62 31359HEY5 6.625% 09/15/2009 DO 09/01/99 AAA 2,344,033.86 .S5 FAHR COMMITTEE Meeting Date To Bd. of Dir. 02/09/05 02/23/05 AGENDA REPORT Item Number Item Number FAHR05-07 Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Michael D. White, Controller SUBJECT: MID-YEAR FINANCIAL REPORT FOR THE PERIOD ENDED DECEMBER 31, 2004 GENERAL MANAGER'S RECOMMENDATION Receive and file FY 2004-05 Mid-Year Financial Report for the period ended December 31, 2004. SUMMARY Attached in a separately bound document is the District's Mid-Year Financial Report for the period ended December 31, 2004. This report is a consolidation of the financial accomplishments of the District at the December 31, 2004, mid-year point. Contained within the Mid-Year Financial Report are budget summary reviews of the Joint Operating & Working Capital Funds, the Capital Improvement Program, the Revenue Areas, and the self-insurance funds. As indicated within the Overview Section of this report, 46.84 percent, or $39.17 million of the FY 2004-05 net joint operating budget of $83.61 million has been expended. Net cost has decreased $1.0 million, or 2.6 percent in comparison with the same period last year primarily due increases in the cost allocation to revenue areas and capital improvement projects and in charges to inter-district sewer agencies resulting in higher offsetting revenues. The total cost per million gallons at December 31, 2004, is $901.34 based on flows of 43.45 billion gallons, or 236.16 million gallons per day. This is $14.98, or 1.63 percent below the budgeted cost per million gallons of $916.32. This lower cost is primarily due to net expenses being lower than the proportionate share of the budget through December 31, 2004 by 6.32 percent. This expense savings is somewhat offset by flows being 5.54 percent lower that the budgeted 250 million gallons per day. PROJECT/CONTRACT COST SUMMARY N/A H:\depl\agenda\FAHRIFAHR200510205105-07 Mid-Year Financial Rpt doc Revised: 8/20198 Book Page 61 Page 1 BUDGET IMPACT D This item has been budgeted. D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. ~ Not applicable (information item) ADDITIONAL INFORMATION None. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. FY 2004-05 Mid-Year Financial Report for the period Ended December 31, 2004. H:\deptlagenda\FAHRIFAHR200510205\05-07.Mid-Year Financial RpLdoc Revised: 8/20198 Book Page 62 Page 2 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Gary G. Streed, Director of Finance Originator: Michael D. White, Controller Meeting Date 2/09/05 Item Number FAHR05-08 SUBJECT: Consideration of Budget Assumptions, Fiscal Policy Statements, and Budget Calendar for Preparation of the FY 2005-06 Budget GENERAL MANAGER'S RECOMMENDATION Approve the FY 2005-06 Budget Assumptions and direct staff to prepare the FY 2005-06 budget incorporating these parameters. SUMMARY Each year the FAHR Committee establishes the Budget Assumptions, approves updates to the Fiscal Policies, as appropriate, and develops the Budget Calendar for preparation of the annual budget. Staff will make a brief presentation at the Committee meeting. 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) ATTACHMENTS 1. Preliminary Budget Assumptions (Pages 2 through 6) 2. Budget Calendar (Pages 7 through 10) 3. Fiscal Policy (Pages 11 through 18) H:\deptlagenda\FAHRIFAHR2005\0205105-08.Budget Assumptions.doc Book Page 63 Page 1 To Bd. of Dir. 2/23/05 Item Number Book Page 64 Pre lim inary Budget Ass umptions 2005-06 Proposed Budget Assumptions Economic Assumptions • Inflation for Orange County in FY 2005-06 is projected to be 2.9 percent based on the 2005 projected percentage change in consumer price index obtained from the December 2004 Economic and Business Review report prepared by Chapman University. Revenue Assumptions • Year 3 of the Proposed Sewer Service Fee Rate Schedule will be ratified by the Board. • For FY 2005-06 the district-wide rate for a single-family residence (SFR) will increase 14.78% to $132.00. • Notification of a rate increase is not required as rates will not exceed the 20% maximum that was included in the last notification. Note that each $1 increase in rates generates approximately $900,000 in annual revenue. • For FY 2006-07 and FY 2007-08, the district-wide rate for a single- family residence (SFR) will increase by no more than 15% each year. • The connection fees, or capital facilities capacity charges, that were adopted in March 2004 will capture only those infrastructure costs that relate to additional capacity. Other infrastructure costs such as improved treatment, rehabilitation, refurbishment, and replacement, will be supported through user fees. Without changes in the Strategic Plan, no changes are proposed for capital facilities capacity charges. 1 Rates may be expected to increase due to an update of the Strategic Plan, but no estimate can be made at this point. Revenues will be budgeted to reflect 4,000 Equivalent Dwelling Unit (EDU) connections, the average of the past ten years. These additional users are expected to generate approximately 1.04 mgd of future flow increases. The impact on capacity facilities from the change in flow projections for SAWPA and IRWD will not be know until FY 2006-07. • Annexation fees capture both the net current assets and the equivalent property tax allocations totaling $4,235 per acre. • Annexable property in the District's service area sphere is minimal; consequently, no FY 2005-06 income from annexation fees is anticipated. • Property tax revenues in FY 2005-06 are being proposed to increase 5% over FY 2004-05, continuing to reflect the 40% reduction for the property tax shift to the State for both FY 2004-05 and FY 2005-06. A 2% annual increase in Assessed Value is authorized by the state constitution and is included in the 5% increase noted above. The additional 3% increase in assessed value is from authorized increases to market value when property is sold at a higher value. A 5% increase in assessed value represents approximately $1.4 million in additional Property Taxes. Book Page 65 2005-06 Budget • Earnings on the investment of the District's operating cash and reserves will be budgeted at 4.00% of the average cash and investment balance projected for the fiscal year. Staff has consulted with PIMCO to get estimates for the next year's rate of return on investments. • A $200 million COP debt issuance is scheduled for FY 2005-06 in order to assist in the funding of the $309 million CIP outlay also scheduled for FY 2005-06. • Permit user rates for flow, BOD, and SS will increase 15% for operations and maintenance as the Cl P portion of the rate is based on average outlay to 2020. Operating Assumptions • Dry weather urban run off will continue to be treated for free up to 4 mgd with a 10 mgd maximum. • All existing secondary treatment facilities will be operated and maintained at full capacity during FY 2005-06. • Interim short-term disinfection facilities will continue to be operated and maintained at existing levels and cost. • Operating expenses are expected to increase as a result of increased in authorized personnel, personnel salaries, natural gas, chemicals, and Biosolids management. • Average daily flow for FY 2005-06 is projected to be the same as the FY 2004-05 projected flows of 250 mgd. This is 18 mgd below the Interim Strategic Plan Update projection for FY 2005-06, but is 13 mgd above the actual for the first 6 months of 2 the current year. The final actual flow for FY 2003-04 was 238 mgd. • Total staffing will not be lower than the FY 2004-05 authorization of 629.0 FTEs. Additional staffing requests are anticipated for FY 2005-06. The majority of the requests that are expected to be approved will directly or indirectly support the CIP. The General Manager will review all additional staffing requests by March 1, 2005. • Vacant positions as of 1 /6/05 will be projected and expensed at 50% at step 1 for the rest of FY 2004-05. • A 5% vacancy factor will be budgeted for FY 2005-06 for authorized positions as of 7 /1 /05 to account for time for recruitment and turnover. The actual vacancy factor for 2003-04 and for the 12 most recent months was approximately 7%. • Additional contracted staffing through IPMC for the CIP is expected and will be reviewed by the PDC in a separate action in May or June. • CIP project budgets already include amounts for IPMC and OCSD staffing requirements and requests. • MOUs for OCEA, Local 501, and SPMT were completed in FY 2003- 04 and will be considered in the FY 2005-06 budget. Salary adjustments based on the MOUs include a survey-based range adjustment at a maximum of 4% that will be effective as of 7 /8/05 for all employees. Additionally, all employees not already at the top step will be budgeted to receive a 4.6% step/range increase. Book Page 66 Pre liminary Budg et Ass umpt ions • Retirement costs for employees enrolled in OCERS are calculated at a rate of 15% of the employee's base salary. Part-time employees' retirement benefits are calculated at 7.65% (FICA rate). • Other employee benefits and insurances will be budgeted to increase 10% in total. • The proposed operating budget will continue to reflect an emphasis on safety, technical, and management training. The proposed FY 2005-06 budget will include a budget for training that is equal to two percent of regular salaries and wages. • An amount equal to half of one percent of the Operating materials and supplies budget will be a contingency for prior year re- appropriations. Since the current year's budget lapses on June 30, a contingency is needed in the succeeding budget year for goods or services ordered at the end of one budget year but not delivered until the following year. • An amount equal to one percent of the Operating materials and supplies budget will be the General Manager's contingency budget. These funds will be allocated to appropriate line items during the year after requests and justifications for unanticipated needs are approved by the General Manager. • Asset management and project management principles and resource needs will be included. Capital Improvement Program Assumptions • The FY 2005-06 cash flow budget is the amount based on the FY 2004- 05 Validated CIP budget. 3 • The baseline CIP cash flow for FY 2005-06 is $309 million, a $78 million increase from FY 2004-05 requirements. • Current evaluation of the CIP by the Asset Management Team may result in deferral or reduction of some projects and a resultant increase in O&M repair costs for materials and services, if the net cash flow impact is a decrease. • The FY 2005-06 CIP budget will only increase for critical projects not previously identified in the Strategic Plan Update. • The FY 2005-06 CIP cash flow will not be affected by the reduction of flow projections for IRWD and SAWPA. • The total CIP through 2020 will be reduced to reflect reduced capacity projects for IRWD and SAWPA flow reductions. • For the first half of FY 2004-05, $88.2 million of the $231.2 million CIP budget, approximately 38%, was expended. For FY 2003-04, $145.1 million of the $200.0 million CIP budget, approximately 73%, was expended. • Asset Management Evaluation processes continue to be included in the scope of major CIP project design contracts. Debt Financing • The District will issue new debt in the form of Certificates of Participation as needed to fund the CIP and to maintain reserves. • A $200 million COP debt issuance is scheduled for FY 2005-06 in order to Book Page 67 2005-06 Budget assist in the funding of the $309 million CIP outlay also scheduled for FY 2005-06. • Debt will only be used for CIP, not for operating expenses. • Capital financing plans which include fewer future borrowings and higher user fees after FY 2007-08 will be considered. • Capital financing plans which include more future borrowings and lower initial user fees will be considered. • Borrowing is proposed only for facilities which do not add capacity and that are funded by all users for replacement, rehabilitation, and improved treatment. Reserve Assumptions • The current reserve policy was reviewed by Public Resources Advisory Group (PRAG) and the Board during FY 2003-04. No changes were proposed and direction was given to continue to maintain reserve levels at a level that is adequate to hedge variable rate COPs. • The District will continue to maintain reserve levels adequate to offset the exposure of variable rate COPs to interest rate fluctuations. • The year-end reserve balances are expected to be below the Board policy level from FY 2005-06 through FY 2009-10. • The maximum amount that reserve levels may be below the policy in the five year planning peiod is 5% or $25 million. • The current reserve policy is summarized as follows: 4 Book Page 68 A cash flow reserve will be established to fund operations, maintenance and certificates of participation expenses for the first half of the fiscal year, prior to receipt of the first installment of the property tax allocation and sewer service user fees which are collected as a separate line item on the property tax bill. The level of this reserve will be established as the sum of an amount equal to six months operations and maintenance expenses and the total of the annual debt (COP) service payments due in August each year. An operating contingency reserve will be established to provide for non-recurring expenditures that were not anticipated when the annual budget and sewer service fees were considered and adopted. The level of this reserve will be established at an amount equal to ten percent of the annual operating budget. A capital improvement reserve will be maintained to fund annual increments of the capital improvement program. The long- term target is for one half of the capital improvement program to be funded from borrowing and for one half to be funded from current revenues and reserves. With this program in mind, the target level of this reserve has been established at one half of the average annual capital improvement program through the year 2020. Catastrophic loss, or self-insurance, reserves will be maintained for property damage including fire, flood and earthquake, for general liability and for workers' compensation. These reserves are intended to work with purchased insurance policies, Prel im inary Budget Assum ptions FEMA disaster reimbursements and State disaster reimbursements. The potential infrastructure loss from a major earthquake has been estimated at $495 million. The level of this reserve has been set to fund the District's non-reimbursed costs, estimated to be $57 million. Accumulated capital funds will be set aside for certain specific, short- term capital improvements as the need and availability arise. A capital replacement/renewal reserve policy has been established to provide thirty percent of the funding to replace or refurbish the current collection, treatment and disposal facilities at the end of their useful economic lives. The current replacement value of these facilities is estimated to be over $2 billion. The initial reserve level has been established at $50 million, which will be augmented by interest earnings and a small portion of the annual sewer user fee, in order to meet projected needs through the year 2030. Provisions of the various certificate of participation (COP) issues require debt service reserves to be under the control of the Trustee for that issue. These reserve funds are not available for the general needs of the District and must be maintained at specified levels. The current level of required COP service reserves is projected to be $61 million. Accumulated funds exceeding the levels specified by District policy will be maintained in a rate stabilization fund. These funds will be applied to future years' needs in order to maintain rates or to moderate annual fluctuations. There is no established target for this reserve. 5 Other Major Changes • The operating budget for the collection system will be combined with the treatment plant operations and maintenance budget. • Line items will be added to the Division's budgets to include the collection system operating and maintenance costs. • Cost allocation to the collection system will no longer be shown in the operating budget review as those location codes will accumulate direct costs when incurred. • Cost accounting for the individual sewers and pump stations will continue. • The cost accounting system will be used to determine the costs and budgets for unit processes or collections, treatment, disposal, recycling, or overhead. • The cost per million gallons will include the entire Operations & Maintenance cost from collection to disposal or reuse. • The cooperative project grant program will be discontinued in FY 2005-06, but the $10 million in authorized grants which are expected to be unpaid as of 6/30/05 will be budgeted at $2.5 million per year for the next four years. Book Page 69 Book Page 70 Budget Calendar I Tasks I Responsibility I EventfDue Date PHASE I-BUDGET PREPARATION CIP -Call for Projects Issued Engineering 09/14/04 CIP-CLR Level 1 & AM Assessment Questions Forms CIP Budget 10/22/04 for New Projects Submitted to Engineering Coordinators CIP -Database, Forms & Instruction Manual Developed CIP Process Team 10/25/04 CIP -Budget Kickoff Financial Planning 11/08/04 and O&M CIP -Training for FY 2005-06 CIP Validation Doug Stewart, Jim 11/30/04- Burror 12/01/04 CIP -Budget Preparation Training (CIP Database) Financial Planning As Needed and O&M Preliminary Budget Assumptions Identified. Financial Planning 11/12/04 Preliminary Budget Assumptions Presented to EMT Financial Planning 11/15/04 Draft Budget Calendar Presented to EMT Financial Planning 11/15/04 Budget Assumptions Presented to FAHR Committee Budget Team 12/08/04 CIP-CLR Level 2 & Supporting Documents for New CIP Budget 12/30/04 Projects Submitted to Engineering Coordinators CIP -Review Project Submittals & Make "Go/No Go" CIP Budget 12/30/04- Decision Coordinators 02/14/05 Preparation for Budget Kickoff/ Training Session: Financial Planning 01/17/05 • Salary and benefit calculations downloaded to Excel worksheets • Develop line item worksheets with mid-year actual expense • Prepare/update budget instruction manual Budget Kickoff/ Training Session: Financial Planning 01/20/05 • Distribute budget manual update • Conduct budget training session • Distribute budget worksheets for each division including -Prior year actuals, Current year budget, and Six months of current year actuals CIP -CIP Database Opened for Input Financial Planning 01/24/05 7 Book Page 71 2005-06 Budget Tasks Responsibility Event/Due Date Operating Divisional Budgets: New Position/Additional Divisional Budget 01/31/05 Employee Decision Packages Due to Financial Planning Coordinators (Julie Matsumoto, Ext. 7564) Operating Divisional Budgets: Equity Adjustment & Divisional Budget 01/31/05 Position Reclassification Decision Packages Due to Coordinators Human Resources (Ann Sullivan, Ext. 7143) Operating Budget: Training Request Forms Due to Divisional Budget 01/31/05 Human Resources (Richard Spencer, Ext. 7164) Coordinators Capital Equipment Budget: Vehicle Capital Equipment Divisional Budget 01/31/05 Decision Packages Due to Fleet Services (Chuck Coordinators Forman, Ext. 7647) Capital Equipment Budget: Computer Capital Divisional Budget 01/31/05 Equipment Decision Packages Due to Information Coordinators Technology (Rich Castillon, Ext. 7283) Update to Unifying Strategies Finalized Unifying Strategy 02/02/04 Teams & EMT Budget Parameters Presented to Other Committees Budget Team OMTS -02/02/05 Budget Parameters Presented to Other Committees Budget Team PDC -02/03/05 Mid-Year Financial Report to FAHR Finance Department 02/09/05 Division Budget Packages Due to Financial Planning: Divisional Budget 02/16/05 • Projection of current year actual costs Coordinators • Proposed costs for 2005-06 • Joint Operating Budget Expense Detail • Preliminary Contractual Material & Services Form • Capital equipment decision Packages (other than computer and vehicle decision packages which were due on 01/31/05) • New program decision packages (Financial Planning will collate and bind these items - along with salary information -into the Preliminary Division Budget Document for review by the General Manager.) Critical Goals, Strategic Planning and Five Year EMT 02/23/05 Staffing Plan -Steering Committee Meeting Mid-Year Financial Report to Board Finance Department 02/23/05 CIP -Project Request with Project Information Entered CIP Budget 02/23/05 in CIP Database Completed Coordinators CIP-Request Review-On-Line Supervisors / 02/23/05- Managers & 03/01/05 Department Heads 8 Book Page 72 Budget Calendar Tasks Responsibility Event/Due Date Complete the Compilation of the Preliminary Division Financial Planning 02/28/05 Budget Document CIP -Request Finalization and Division Manager Division Managers 03/02/05 Review Completed CIP -Request Finalization and Department Approval Department Heads 03/03/05 CIP -Completed CIP Budget Delivered to Finance CIP Budget 03/07/05 Coordinators PHASE II -BUDGET REVIEW Divisional Budgets -Distribution of Preliminary Line Item Financial Planning 03/01/05 Requested Budgets to Department Heads and Budget Coordinators Divisional Budgets -Budget Review Meetings with GM, General Mgrs. Office, 03/03/05 Budget Staff, and Department Representatives -review Financial Planning, & - budget & initial decision packages Division Coordinators 03/11/05 CIP -Committee Review CIP Committee 03/07/05 CIP -Resource Availability Review Engineering & O&M 03/07/05 CIP -Preliminary CIP Reports Printed for Review Financial Planning 03/08/05 • Summary of Capital Requirements • CIP Cash Flow by Year to 2020 • CIP Summary by Revenue Program Category • Total CIP Budget by Status • CIP Project Detail Sheets CIP -Review Workshop Financial Planning & 03/09/05 Department Heads CIP -General Manager Approval General Manager 03/16/05 Divisional Budgets -Performance Budget Documents Divisional Budget 03/23/05 Due to Financial Planning (Julie Matsumoto): Coordinators • Organization Charts • Performance Results (2004-05) • Performance Measures (2005-06) Divisional Budgets -Completion of Preliminary Budget Financial Planning 03/29/05 and Compilation into Departmental Budgets CIP Schedules Through 2020 Completed Financial Planning 03/30/05 Board Holds First Reading of Sewer Service User Fee Board of Directors 04/27/05 Schedule for 2005-06 9 Book Page 73 2005-06 Budget [ Tasks Responsibility Event/Due Date PHASE Ill -BUDGET PRESENTATION GIP -Final GIP Budget Document Preparation and Financial Planning 04/11/05 Incorporation into Final Budget Document Initial -Proposed Budget finalized Financial Planning 04/26/05 Initial -Proposed 2005-06 Budget Presented to Financial Planning OMTS -05/04/05 Committees PDC -05/05/05 FAHR -05/11/05 General Manager's Budget Message Completed General Mgrs. Office / 05/12/05 Financial Planning Approval of General Manager's Budget Message General Manager 05/13/05 Final -Proposed Budget to Printer Financial Planning 05/16/05 Board Holds "Public Hearing" for Rate Schedule Board of Directors 05/25/05 Ordinance Board Adopts Sewer User Fee Schedule for 2005-06 Board of Directors 05/25/05 PHASE IV -BUDGET DELIBERATIONS Final Draft -Proposed 2005-06 Budget Presented to Financial Planning OMTS -06/01/05 Committees PDC -06/02/05 FAHR-06/08/05 Public Hearing & Board Adoption Board of Directors 06/22/05 PHASE V -DISTRIBUTION OF BUDGET Final line item budget and equipment budgets Financial Planning 07/18/05 distributed to Departments PHASE VI -BUDGET DEBRIEFING Budget Debriefing Financial Planning 07/19/05 • Global changes that occurred in this year's budget. • Changes since the Department's original submittal. • Changes that occurred as a result of Board action . • Results of Budget Survey . • Overview of Budget Monitoring with PeopleSoft Enterprise One Software and review of Budget Coordinator's Responsibility. • Overview of GIP Budget Monitoring . • Suggestions for Budget Process Improvements . 10 Book Page 74 Fiscal Policy Statement General Financial Goals To maintain a financially viable Sanitation District that can maintain an appropriate level of wastewater Completed In Progress treatment services. ✓ To maintain financial flexibility by adapting to local and regional economic changes. ✓ To maintain and enhance the sound fiscal condition of the District. ✓ To ensure that the value added by every program and activity within the District is proportional to its cost; and to eliminate those programs and activities that do not contribute to the District's mission. ✓ To provide training opportunities to the greatest extent possible for available jobs within the organization for those employees working in programs or activities that have been reduced or eliminated. ✓ To provide employees with cross-training opportunities in order to achieve multi-tasking capabilities. ✓ Operating Budget Policies The District will adopt a balanced budget by June 30 of each year. The budget will be used as a fiscal control device as well as a financial plan. Budget preparation and monitoring will be performed by each division within the District, the organizational level of accountability and control. The Director of Finance will prepare a budget calendar no later than January of each year. An annual operating budget will be developed by conservatively projecting revenues and expenditures for the current and forthcoming fiscal years. During the annual budget development process, the existing programs will be thoroughly examined to assure removal or reduction of any services or programs that could be eliminated or reduced in cost. 11 Book Page 75 ✓ ✓ ✓ ✓ ✓ ✓ Fiscal Policy Comments 2005-06 Budget Fiscal Policy Statement Completed In Progress Current operating revenues will be sufficient to support current operating expenditures. ✓ Annual budgets including reserves will provide for adequate design, construction, maintenance and replacement of District capital plant and equipment. ✓ The District will maintain all physical assets at a level adequate to protect the District's capital investment and to minimize future maintenance and replacement costs. ✓ The District will project equipment replacement and maintenance needs for the next five years and will update this projection each year. From this projection a maintenance and replacement schedule will be developed and followed . ✓ The District will avoid budgetary and accounting procedures that balance the current budget at the expense of future budgets. ✓ The District will forecast its expenditures and revenues for each of the next five years and will update this forecast at least annually. ✓ Revenue Policies Because revenues are sensitive to both local and regional economic conditions, revenue estimates adopted by the Board of Directors must be conservative. Staff will estimate annual revenues by an objective, analytical process that utilizes trend, judgmental, and statistical analysis as appropriate. Ad valorem property tax revenues of the District will be dedicated to debt service. Sewer Service User Fees will be projected for each of the next ten years and this projection will be updated annually. Expenditure Policies The District will maintain a level of expenditures that provides for the health, safety and welfare of the residents of the community. 12 Book Page 76 ✓ ✓ ✓ ✓ ✓ Comments Fiscal Policy Fiscal Policy Statement Completed In Progress Comments The District will set fees and user charges at a level that fully supports the total direct and indirect costs of operations, capital improvements, and debt service requirements not covered by reserves. ✓ Capital Improvement Budget Policies The District will make all capital improvements in accordance with an adopted and funded capital improvement program. The adopted capital improvement program will be based on need. ✓ The District will develop an annual five-year plan for Strategic Plan capital improvements, including design, development, projects needs implementation, and operating and maintenance costs. ✓ through 2020. All capital improvement projects approved in the annual operating budget are approved at the budgeted amounts through the completion of the project. The Board of Directors approves both the individual project total budget and the projected cash outlays for all capital improvement projects for the current fiscal year. ✓ Staff will identify the estimated costs, potential funding sources and project schedule for each capital project proposal before it is submitted to the Board of Directors for approval. ✓ Staff will identify the estimated on-going future Included within the Asset Management Operating and Maintenance costs, as well as staffing Program's Phase I requirements upon completion for each capital project implementation proposal before it is submitted to the Board of Directors over the next three for approval. ✓ years. The District will use intergovernmental assistance and other outside resources whenever possible to fund capital improvements providing that these improvements are consistent with the Capital Improvement Plan and District's priorities, and that the future operating and maintenance costs of these improvements have been included in the budget. ✓ Staff will coordinate development of the capital improvement budget with the development of the operating budget. All operations and maintenance resources required to implement the CIP have been considered and appropriately reflected in the operating budget for the year the CIP is to be implemented. ✓ 13 Book Page 77 2005-06 Budget Fiscal Policy Statement Cost tracking for components of the capital improvement program will be updated quarterly to ensure project completion against budget and established time lines. Asset Management Policy In order to provide for the systematic planning, acquisition, deployment, utilization control, and decommissioning of capital assets, the following policies have been established: • The condition, performance, utilization, and cost of assets will be recorded down to the maintenance managed item component level. • A detailed planned maintenance program is in place to ensure that the assets, facilities and systems perform to their design criteria and meet their design lives. • A system is in place to blend planned and unplanned activity to optimize the cost against the asset performance requirements. • Reliability Centered Maintenance techniques will be used to optimize the maintenance plans and to identify any design alterations that are economically justified. • Current levels of asset management service in terms of quantity and quality of service including condition, function/size/type, regulatory requirements, reliability, and repair response times have been determined and documented. • The full economic cost is charged on all asset management activities. • Asset Management maintains appropriate pricing and funding strategies that match the needs of the business to ensure sustainability. • Asset Management considers the real growth of the District's service area and the way in which demands for service will change in the future, including population, unit demand, demographics, changing customer expectations, and changing regulatory requirements. 14 Completed In Progress ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Book Page 78 Comments A Strategic Plan was approved by the Board in 12/02 for development of a state-of-the art Asset Management (AM) Program. In April 2004, the Board approved a staff driven approach for the implementation of advanced management practices. Fiscal Policy Fiscal Policy Statement Completed In Progress Comments • Monitoring and reporting is performed on the condition, performance and functionality of the District's assets against prescribed service levels ✓ and regulatory requirements. • A condition/function index is linked with customer expectations at a cost that are customers are willing ✓ to pay. • Future level of service options available and their ✓ associated costs are constantly analyzed. • An assessment of the relative risks and costs of benefits is derived for all investments in capital ✓ works, maintenance, and operations. • Individual asset management decisions are made only when the cost of all programs has been analyzed and the funding needs of the whole organization is known together with the knowledge ✓ of its impact on rates. • Necessary renewal programs to sustain the existing levels of service and condition of assets, as identified through the best appropriate process, is ✓ approved ahead of new capital works and services. • New capital assets for new works and services are approved only with the commitment of the recurrent (operations and maintenance) funding necessary to ✓ sustain the new works and services. • The financial, social, and environmental aspects of ✓ asset management will be reported on annually. Vehicle Replacement Policy In order to provide safe, reliable transportation appropriate to the work to be performed, the following policies have been established: • The newest vehicles will be used for those purposes requiring the highest annual mileage. ✓ • Vehicles will be replaced when they are 10 years old or have accumulated 100,000 miles. ✓ • A vehicle may be replaced in advance of the above criteria if it can be reallocated to a low mileage use between the plants. ✓ • Electric carts are to be utilized for in-plant only uses. ✓ 15 Book Page 79 2005-06 Budget Fiscal Policy Statement • Electric vehicles are to be utilized for all between plant uses. • CNG vehicles are to be utilized within the County (pump station runs, Source Control inspections, etc). • CNG vehicles or bi-fuel vehicles are to be utilized to travel outside of Orange County (i.e., Environmental Compliance Monitoring of biosolids application sites, etc). Short-Term Debt Policies The District may use short-term debt to cover temporary or emergency cash flow shortages. All short-term borrowing will be subject to Board approval by Completed In Progress ✓ ✓ ✓ resolution. ✓ The District may utilize Board approved intra-agency loans rather than outside debt instruments to meet short-term cash needs. Intra-agency loans will be permitted only if an analysis of the affected Revenue Areas indicates funds are available and the use of these funds will not impact current operations. The principal, along with interest at the prevailing rate as established by the District's Treasurer, will be paid to the lending Revenue Area. ✓ Long-Term Debt Policies Proceeds from long-term debt will not be used for current on-going operations. Before any new debt is issued, the impact of debt service payments on total annual fixed costs will be analyzed. Develop and maintain a board adopted debt policy. 16 Book Page 80 ✓ ✓ ✓ Comments Fiscal Policy Statement Accumulated Funds & Reserve Policies A cash flow/contingency reserve will be established to ( 1) fund operations and maintenance expenses for the first half of the fiscal year prior to the receipt of taxes and user fee revenues, (2) provide for non-recurring, unanticipated expenditures, and (3) fund the annual debt service principal payments and semi-annual interest payments due in August of each year. The level of this reserve will be the sum of (a) an amount equal to six months of the total District Operating costs, (b) ten percent of the District's Operating costs, and (c) the total of all annual debt service payments due in the month of Completed In Progress August for each year. ✓ A capital improvement reserve will be maintained to fund approximately 50 percent of the average annual capital outlay plus the entire projected cost of funding specific near-term projects. ✓ A renewal/replacement reserve will be maintained to fund the District's renewal, rehabilitation and replacement requirement costs associated with the District's existing capital plant and collection system over the next twenty years. The reserve was initially set at $50 million in 1998-99 and, with an assumed interest rate level of five percent and annual increments, will grow to meet 30 percent of the identified demands to 2030. ✓ Self-insurance reserves for property (fire, flood, and earthquake}, general liability, and workers' compensation will be maintained at a level which, together with purchased insurance policies, FEMA Disaster reimbursement funding, and State Disaster Assistance payments would adequately protect the District. Based on a potential infrastructure loss of $495 million, the reserve level has been set at $57 million. ✓ Investment Policies The District's Treasurer will annually submit an investment policy to the Board of Directors for review and adoption. ✓ The investment policy will emphasize safety and liquidity ~re~. ✓ 17 Book Page 81 Fiscal Policy Comments 2005-0 6 Budget Fiscal Policy Statement Accounting, Auditing, and Financial Reporting The District's accounting and financial reporting systems will be maintained in conformance with generally accepted accounting principles and standards Completed In Progress promulgated by the Governmental Accounting ✓ Standards Board. A fixed asset system will be maintained to identify all District's assets, their condition , historical cost, replacement value, and useful life. ✓ Quarterly financial reports will be submitted to the Board of Directors and will be made available to the public. ✓ Full disclosure will be provided in the general financial statements and bond representations. ✓ The District will maintain a good credit rating in the financial community. An annual audit will be performed by an independent public accounting firm with the subsequent issue of an official Comprehensive Annual Financial Report, ✓ including an audit opinion and a management letter. ✓ 18 Book Page 82 Comments District Received AA rating in 2000 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Gary G. Streed, Director of Finance Originator: Michael D. White, Controller Meeting Date To Bd. of Dir. 02/09/05 02/23/05 Item Number Item Number FAHR0S-09 SUBJECT: CONTRACT EXTENSION OF THE DISTRICT'S FINANCIAL ADVISOR GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to renew the consultant agreement with Public Resources Advisory Group as the District's Financial Advisor for an additional two-year period beginning with fiscal year 2004-05. SUMMARY In November 2001, the Board of Directors appointed Public Resources Advisory Group (PRAG) as the District's Financial Advisor for a three-year period beginning with fiscal year 2001-02, with an option of extending the service period for an additional two years upon Board approval. This was done after staff conducted a competitive selection process for Financial Advisor to assist with the development of a financial plan for the capital improvement program through the year 2020, including groundwater replenishment, and for assistance in the issuance of the $280 million Certificates of Participation, Series 2003. During the original competitive selection process, PRAG was deemed to be the most competent firm to meet the District's financing needs by the Evaluation Team, a team consisting of the Director of Finance, the Controller and two external professionals. This finding was based on proposal evaluations and interviews of the four finalists as to the overall qualifications of each firm, the experience of each firm, quality of each firm's professional personnel assigned, services and products offered by each firm, understanding of the District's needs and each firm's proposed solutions, and the financing approach proposed by each firm. Staff was pleased with the results provided by PRAG on both the development of the capital improvement program financial plan and assistance provided on the $280 million debt issuance. PRAG's assistance will be needed once again as we move forward with the next debt issuance scheduled for August of this year. PRAG's bond financing fee, as originally proposed and still in effect, is $75,000 for a fixed rate debt issuance and $100,000 for a variable debt issuance, plus cost. H:ldepllagenda\FAHRIFAHR200510205\05-09 PRAG Finanical Advisors.doc Page 1 Book Page 83 Staff therefore requests that the Committee recommend that the Board of Directors extend the contract of PRAG as the District's Financial Advisor and authorize the General Manager to complete a negotiated agreement for a two-year period beginning with fiscal year 2004-05. PRIOR COMMITTEE/BOARD ACTIONS In November 2001, Board of Directors appointed Public Resources Advisory Group (PRAG) as the District's Financial Advisor for a three-year period beginning with fiscal year 2001-02, with an option of extending the service period for an additional two years upon Board approval. PROJECT/CONTRACT COST SUMMARY NIA BUDGET IMPACT D This item has been budgeted . D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. fZ] Not applicable (information item) ADDITIONAL INFORMATION NIA ALTERNATIVES Direct staff to initiate a new competitive selection process. CEQA FINDINGS NIA ATTACHMENTS None. H:ldepllagenda\FAHR\FAHR2005\0205\05-09.PRAG Finanical Advisors.doc Book Page 84 Page 2 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Thomas L. Woodruff, General Counsel SUBJECT: Proposed Legislation -2005 GENERAL MANAGER'S RECOMMENDATION Consideration of pending 2005 Legislative Proposals: 1. Assembly Constitution Amendment No. 1 2. Assembly Constitution Amendment No. 7 3. Senate Bill No. _ (no number assigned at this time) 4. California Deficit Prevention Act SUMMARY Meeting Date To Bd. of Dir. 2/09/05 Item Number Item Number FAHR0S-10 Please refer to General Counsel's memorandum dated January 26, 2005 (attached). PRIOR COMMITTEE/BOARD ACTIONS N/A 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 ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS Memorandum from General Counsel dated January 26, 2005 H:ldept\agenda\FAHRIFAHR2005\0205\05-10 Legislation doc Revised: 06/04/03 Book Page 85 Page 1 Book Page 86 LAW OFFICES OF WOODRUFF, SPRADLIN & SMART A PROFESSIONAL CORPORATION MEMORANDUM TO: Chair and Members of the Board of Directors Orange County Sanitation District FROM: General Counsel DATE: January 26, 2005 RE: Proposed Legislation -2005 The District has been a long time active participant member of the California Association of Sanitation Agencies ("CASA"), which serves as the professional organization for Special Districts and Cities that are engaged in the wastewater collection, treatment and disposal activities in communities throughout the State. In this area, the CASA organization is very influential and highly respected in the State Legislature, as well as with the Regulatory Agencies, such as the State Water Resources Control Board ("SWRCB") and the ten Regional Water Quality Control Boards ("RWQCB"). One of the principal areas of interest and action by CASA is to influence proposed legislation, and in some instances to urge the adoption of legislation sought by CASA through the use of a paid lobbyist staff in Sacramento, and by the cooperative assistance of the representatives of the 100+ member agencies of CASA. The organization has always had a Standing Committee ("Legislative Committee"), which meets approximately five or six times in the course of the year for purposes of reviewing Bills that have been introduced and are being considered by the Legislature, and to receive input from the member agencies, both as to those Bills, as well as measures that are requested by the wastewater agencies. For over 25 years, I have been an active member of the CASA Legislative Committee representing the District. There have always been one or more other representatives to the Committee, either Directors, the General Manager or Staff Members. While most of the legislative measures deal with technical and operational issues, and occasionally legal procedural issues of interest or possible impact to the wastewater agencies and particularly the District, occasionally measures are introduced that are of a more significant policy matter in terms of overall governance of the agencies. At the outset of the 2005 Legislative Session, there are four measures which I have summarized below, which I believe fall into that category and for which it is my recommendation that the Board of Directors review, and at the February Board meeting, consider taking a position of support or opposition to each. The more typical legislative measures of a technical, operational or procedural nature are able to be acted upon by myself, or other representatives of the District, during the course of the Legislative \197417\1 Book Page 87 January 26, 2005 Page3 Public Employees' Retirement System (for most cities) and the Orange County Employees' Retirement System ("OCERS"), which is the plan in which the District is a member agency. This measure, as noted by Assemblyman Richmond, is tracking similarly to the Governor's proposal to have the Legislature take the necessary measures to change the nature of the Pension Plans from defined benefits to defined contributions. The driving purpose behind it is stated to be the ultimate cost-saving to public agencies, which of course has come under rather intense criticism in the past few months because of approvals of increases in the pension benefits in substantial amounts. There are arguable preferred benefits under either type of plan, but the proposal for a defined contribution plan is largely deemed to provide better budget predictability, because the amount ultimately paid to the retiree is based solely on the contributions by the employer and employee, and the actual growth of those contributions during the years of employment. Under defined benefit pension plans, while the contributions by both employer and employee may be the same, the payment benefits are guaranteed in advance to the retiree, based on a formula of age, years of service and amount of salary earned while in active employment. The problem with such a plan from a financial point of view is that the actual earnings of the contributions made during the course of employment may not yield the revenues necessary to fund the pension payments; and accordingly, the local agencies or the State of California, (at a later date) will have to contribute additional sums from its General Fund to meet those obligations. 3. Assembly Constitutional Amendment No. 7 This measure has been introduced by Assemblyman Joe Nation, a representative from Northern California, which would change the present two-thirds voter approval requirement for special taxes to instead authorize a city, county or special district to impose a special tax with the approval of 55% of its voters voting on the tax. This measure is different than the Deficit Prevention Act, in that this does not address fees and charges, but rather special taxes, as those are presently defined in Article XIII of the State Constitution. Special districts have no authority or power to adopt general taxes, but only special taxes, which means that revenues received must be used for specified purposes within the limited powers of a special district such as OCSD. The District has never adopted a special tax. Historically, these taxes have been difficult to be successfully adopted because of the two-thirds voter requirement, and this proposal is intended to reduce that from 66- 2/3 to 55%, which is intended to increase the ability to adopt these taxes. \197417\1 Book Page 89 January 26, 2005 Page4 4. Special Districts Directors' Compensation (no Bill number yet assigned) During the 2003-2004 Legislative Session, Senator Deborah Ortiz introduced SB 1272, which imposed numerous requirements upon the elected directors of special districts, including requirements for legal and ethics training sessions, limiting the definition of meetings for which compensation could be paid, and setting a maximum of $100 per meeting or day of service. The Bill was intensely debated in the Committees and the full membership of both the Assembly and the Senate, and was successfully passed and presented to the Governor. The Governor, however, did veto the Bill as being too severe in several respects. Senator Ortiz has indicated that she will reintroduce the Bill in essentially the exact form by which it was adopted last year, with the hopes of again obtaining passage and to convince the Governor. There are two important items to keep in mind in this measure: A. The Bill, as drafted last year, and if repeated exactly this year, actually is not applicable to the District. There is a clear and absolute exemption (for reasons we have never been able to determine) for those special districts that have a governing Board consisting in whole or in part of ex-officio members who are officers of a city, or another special district. B. The District Board of Directors, of its own choosing and prior to the passage of SB 1272 last year, adopted a comprehensive Resolution No. 04-16 addressing the issues as to the meetings where Directors would be eligible for compensation and those where they would not. In point of fact, it is perhaps even more restrictive in some respects than the Ortiz Bill. The more controversial provision among elected officials has been an absolute cap of $100 per meeting, or day of service, without a provision for a cost-of-living escalator, which is presently a part of the governing law. I also bring to your attention a measure to be introduced by Assemblyman Simon Salinas, which is similar to the measure of Senator Ortiz, but not nearly as restrictive. It too provides for requirements of audits and ethics training, but does not provide for a specific monetary limitation to be paid as compensation on a per meeting or per day-of- service basis. This measure has not yet been given a Bill number by the Clerk of the Assembly, and it is expected that the Ortiz measure and Salinas measure will obtain some mutual consolidated effort by both the authors and the interested parties who will be attempting to negotiate various provisions. I do believe that it is important for the Board to express its position on each of the above matters, not only as a public declaration of its policy, but to provide some guidance to myself, the General Manager and any other participants in the Legislative Committee of CASA, particularly ACA 1 re Pension Plans. This item is of considerable long term importance, and the District employees who may participate at CASA are, in \197417\1 Book Page 90 January 26, 2005 Page5 my opinion, somewhat conflicted because of their participation as members of the retirement plan, notwithstanding that the proposal would not directly affect their individual standing as, it would only apply to those who commence employment after July 1, 2007. \197417\1 THOMAS L. WOODRUFF GENERAL COUNSEL Book Page 91 Book Page 92 ACA1 -2- 1 they receive in taxes. A fair and balanced approach to restoring 2 long-term fiscal responsibility must include limiting the cost of 3 government employee pensions which have grown dramatically 4 in recent years, threatening the long-term investments CaJifomia 5 needs in education, infrastructure, health care, and public safety; 6 and 7 WHEREAS, CaJifomia has among the nation's most generous 8 public pension plans, providing some employees with more than 9 100 percent of their final years' salary at age 50. During the past 10 20 years, most private employers have moved to defined 11 contribution plans such as 401 (k) plans to limit costs, promote 12 responsible budgeting, and improve fiscal accountability; and 13 WHEREAS, The struggle to meet the demands of generous 14 pension plans negotiated by elected officials has increased state 15 and local government debt by more than $12 billion, leaving 16 more than $30 billion in additional unfunded costs for future 17 retirees. Creating defined contribution plans for all state and local 18 government employees will eliminate new unfunded liabilities; 19 and 20 WHEREAS, Under current law, existing state and local 21 government employees cannot have their retirement plans 22 changed by this measure. Promises made to all current public 23 employee retirement system members will be kept under this 24 measure. A switch from defined benefits to defined contributions 25 plans will only affect employees hired by public agencies on or 26 after July 1, 2007; and 27 WHEREAS, Unlike current government pension plans, 28 defined contribution plans allow employees to enhance their 29 credit standing, control their assets, move pension assets from 30 one job to another, and pass along remaining funds to their heirs; 31 and 32 WHEREAS, Defined contribution plans will make government 33 officials more accountable for spending public money, reduce the 34 long-term cost of retirement plans, provide greater budget 35 predictability, and help restore fiscal responsibility to state and 36 local budgets; now, therefore, be it 37 Resolved by the Assembly, the Senate concurring, That the 38 Legislature of the State of California at its 2005-06 First 39 Extraordinary Session commencing on the sixth day of January 40 2005, two-thirds of the membership of each house concurring, rn 99 Book Page 94 -3-ACAl 1 hereby proposes to the people of the State of California, that the 2 Constitution of the State be amended as follows: 3 First-That Section 8 is added to Article XX thereof, to read: 4 SEC. 8. (a) The California Public Employee Defined 5 Contribution Plan is hereby established. 6 (b) Notwithstanding any other provision of law or this 7 Constitution, on and after July 1, 2007, any person hired as a new 8 employee by a public agency may enroll only in a defined 9 contribution plan of a public pension or retirement system, and 10 shall not enroll in a defined benefit plan. 11 ( c) On and after July I, 2007, and before January 1, 2008, any 12 active member of a defined benefit plan offered by any public 13 agency may transfer a sum equal to the net present value of that 14 member's interest in the defined benefit plan to a defined I 5 contribution plan as defined in this section. 16 (d) As used in this section, the following terms apply: 17 (I) "Defined benefit plan" means a system providing a 18 pension benefit determined by a formula based on age, service 19 credit, and salary. 20 (2) "Defined contribution plan" means a system providing a 21 pension benefit that is equal to the combined employer and 22 employee contributions plus interest and net investment earnings, 23 less administrative expenses. A public agency may use one or 24 more private sector third-party administrators to manage a 25 defined contribution plan, provide investment vehicles, and 26 educate members and retirees on appropriate investment 27 strategies. 28 (3) "Public agency" includes, but is not limited to, the State of 29 California, and any city, city and county, or county, including a 30 charter city or charter county, district, school district, University 31 of California, California State University or other political 32 subdivision or public entity of, or organized under the laws of, 33 this State, or any department, instrumentality, or agency thereof. 34 Second-That in the event that this measure and any other 35 measure relating to retirement plans of public employees appear 36 on the same statewide election ballot, the provisions of that other 3 7 measure shall be deemed to be in conflict with this measure. In 38 the event that this measure shall receive a greater number of 39 affirmative votes than that other measure, the provisions of this Book Page 95 ACAI -4- 1 measure shall prevail in their entirety, and the provisions of the 2 other measure shalJ be null and void. 3 Third-That the provisions of this act are severable. If any 4 provisfon of this act or its application is held invalid, that 5 invalidity shall not affect other provisions or applications that can 6 be given effect without the invalid provision or application. 0 rn 99 Book Page 96 CALIFORNIA LEGISLATURE-2005-06 Rl!GlJLAR SESSION Assembly Constitutional Amendment No. 7 Introduced by Assembly Member Nation December 6, 2004 Assembly Constitutional Amendment No. 7-A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 4 of Article XIII A thereof, by amending Section 2 of Article XIII C thereof, and by amending Section 3 of Article XIIl D thereof, relating to taxation. LEGISLATIVI! COUNSl!L'S DIGl!ST ACA 7, as introduced, Nation. Local governmental taxation: special taxes: voter approval. The California Constitution conditions the imposition of a special tax by a city, county, or special district upon the approval of½ of the voters of the city, county, or special district voting on that tax, except that certain school entities may levy an ad valorem property tax for specified purposes with the approval of 55% of the voters within the jurisdiction of these entities. This measure would change the ½ voter-approval requirement for special taxes to instead authorize a city, county, or special district to impose a special tax with the approval of 55% of its voters voting on the tax. This measure would also make technical, nonsubstantive changes to these provisions. Vote: ½. Appropriation: no. Fiscal committee: no. State- mandated local program: no. 1 Resolved by the Assembly, the Senate concurring, That the 2 Legislature of the State of California at its 2005-06 Regular 3 Session commencing on the sixth day of December 2004, 99 Book Page 97 ACA7 -2- 1 two-thirds of the membership of each house concurring, hereby 2 proposes to the people of the State of California, that the 3 Constitution of the State be amended as follows: 4 First-That Section 4 of Article XIII A thereof is amended to 5 read: 6 Section 4. Cities, Cottnties and :,peeiaJ distriets, A city, county, 7 or special district, by a mo thirds 55 percent vote of-the 8 qaalified eleeters of sueh distriet its voters voting on the 9 proposition, may impose special taxes on sueh dislriel a special 10 tax within that city, county, or special district, except an ad 11 valorem tmtes tax on real property or a t:ransaelion transactions 12 tax or sales tax on the sale of real property within such City, 13 Cmm:ty that city, county, or special district. 14 Second-That Section 2 of Article XIII C thereof is amended 15 toread: 16 SEC. 2. Loeal Go<t·emmefft Tux Lirmtation. Notwithstanding 17 any other provision of this Constitution: 18 (a) AH ta,c:es A tax imposed by any local government shaH be 19 dee2ned to ee is either a general taxes tax or a special t:a,res tax. 20 Speeial A special purpose distriets district or agencies agency, 21 including a school districts, shal±have district, has no power 22 authority to levy a general taxes-tax. 23 (b) Ntr-A local government mey-shall not impose, extend, or 24 increase any general tax unless and until that tax is submitted to 25 the electorate and approved by a majority vote of its voters voting 26 on the proposition. A general tax shall is not be deemed to have 27 been increased if it is imposed at a rate not higher than the 28 maximum rate so approved. The election required by this 29 subdivision shall be consolidated with a regularly scheduled 30 general election for members of the governing body of the local 31 government, except in cases of emergency declared by a 32 unanimous vote of the governing body. 33 (c) Any general tax imposed, extended, or increased, without 34 voter approval, by any local government on or after January 1, 35 1995, and prior to the effective date of this article, shall may 36 continue to be imposed only if that general tax is approved by a 3 7 majority vote of the voters voting in an election on the issue of 3 8 the imposition, which election shall be is held w it:hi:t, two years 39 of t:he effeethe date of this 8:!'tiele no later than November 6, 40 1998, and in compliance with subdivision (b). 99 Book Page 98 -3-ACA7 1 (d) NtrA local government may-shall not impose, extend, or 2 increase any special tax unless and until that tax is submitted to 3 the electorate and approved by a tw6 tltirds 55 percent vote of its 4 voters voting on the proposition. A special tax shall is not he 5 deemed to have been increased if it is imposed at a rate not 6 higher than the maximum rate so approved. 7 Third-That Section 3 of Article XIII D thereof is amended to 8 read: 9 SEC. 3. Property Tax:cs, Assessments, Fees mid Cttttrges IO Limited.(a) Ntt-An agency shall not assess a tax, assessment, fee, 11 or charge shall be assessed by an)i agcney upon any parcel of 12 property or upon any person as an incident of property ownership 13 except: 14 (l) The ad valorem property tax imposed pursuant to Article 15 XIII and Article XIIIA. 16 (2) Any special tax receiving a two-thirds or 55 percent vote, 17 as applicable, pursuant to Section 1 or 4 of Article XIII A or 18 subdivision (d) of Section 2 of ArticleXIIIC. 19 (3) Assessments as provided by this article. 20 (4) Fees or charges for property related property-related 21 services as provided by this article. 22 (b) For purposes of this article, fees for the provision of 23 electrical or gas service fflflH are not be deemed charges or fees 24 imposed as an incident of property ownership. 0 99 Book Page 99 AMENDED IN SENATE APRIL 27, 2004 AMENDED IN SENATE APRIL 12, 2004 AMENDED IN SENATE MARCH 23, 2004 SENATE BILL Introduced by Senator Ortiz February 13, 2004 No.1272 An act to amend Section 26909 of, -and to add Chapter 7.5 (commencing with Section 60210) to Division I of Title 6 of, the Government Code, and to repeal Sectitn1 20201 Sections 20201 and 20202 of the Water Code, relating to special districts, and making an appropriation therefor. LEOISLA:flVE COUNSEL'S DIGEST SB 1272, as amended, Ortiz. Special districts. (I) Existing law requires the county auditor to either make or contract for an annual audit of the accounts and records of every special purpose district within the county for which an audit is not otherwise provided. This bill would require these audits to be performed in accordance with government auditing standards for financial and compliance audits and would impose various other requirements on these audit , thus imposing a state-mandated local program. The bill would require the Controller to review the audits under specified procedures and would make an annual appropriation to the Controller from the GeneraJ Fund of up to $600,000 for that purpose. (2) Existing law provides for the establishment and operation of various special districts, the composition of their governing boards, and 96 Book Page 100 SB 1272 -2- the payment to governing board members for attending meetings and perfonning other duties. · This bill would require special district governing boards to conduct legal and ethics orientation sessions that governing board members would be required to attend. This bill would also establish whistle-blower protections for members or employees who make protected disclosures of improper governmental activities, as specified. This bill would define the meetings for which compensation may be paid to members of governing boards of special districts and would limit travel expenses, as specified. This bill would require that for members who first take office on or after January 1, 2005, participation in group life insurance and health and welfare benefits shall be on a self-pay basis and provide that those members may not receive retirement benefits from the district. (3) Existing Jaw provides that compensation of members of the governing board of any water district may not exceed $100 per day for attendance at meetings subject to a 5% annual aqjustment. This bi11 would repeal that pFo•;•isieH those provisions. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory prov1s1ons establish procedures for making that reimbursement, induding the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Vote: 2h Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. Section 26909 of the Government Code 1s 2 amended to read: 96 Book Page 101 -3-SB 1272 I 26909. (a) The county auditor shall either make or contract 2 with a certified public accountant or public accountant to make an 3 annual audit of the accounts and records of every special purpose 4 district within tho county for which an audit by a certified public 5 accountant or public accountant is not otherwise provided. In each 6 case, the minimum rcqt1ircmcnts of 1hc audit shall be prescribed 7 by the Controller and shall conform to government auditing 8 standards. 9 (b) Where an audit of a district's accounts and records is made 10 by a certified public accountant or public accountant, the 11 minimum requirements of the audit shall be prescribed by the 12 Controller and shall conform to government auditing standards, 13 and a report thereof shall be filed with the Controller and with tbe 14 county auditor of the county in which the district is located. The 15 report shall be filed within 12 months of the end of the fiscal year 16 or years under exarnfoation. 17 (c) Any costs incurred by tbe county auditor, including 18 contracts with, or employment of, certified public accountants or 19 public accountants, in making an audit of every special purpo e 20 district pursuant to this section shall be borne by the district and 21 shall be a charge against any unencumbered funds of the district 22 available for the purpose. 23 (d) For joint districts lying within two or more counties, the 24 above provisions shall apply to the auditor of the county in which 25 the treasury is located. 26 ( e) The county controller, or ex officio county controller, shall 27 effect this section in those counties having a county controller, or 28 ex officio county control1er. 29 (f) A special district may, by unanimous request of the 30 governing board of the special district, with unanimous approval 31 of the board of supervisors, replace the annual audit with a biennial 32 audit covering a two-ycarpcriod or, if the district's annual budget 33 does not exceed an amount specified by the board of supervisors, 34 an audit covering a five-year period. 35 Notwithstanding the foregoing provisions of this section to the 36 contrary, districts shall be exempt from the requirement of an 37 annual audit if the financial statements arc audited by the 38 Controller to satisfy federal audit requirements. 39 (g) A board of supervisors may substitute a financial review in 40 accordance with definitions promulgated by the United States 96 Book Page 102 SB 1272 -4- 1 General Accounting Office for the audit of a special district as 2 required by this section, provided that all of the following 3 conditions arc met: 4 (I) The board of supervisors is the governing board of the 5 district. 6 (2) The special districts revenues and expenditures arc 7 transacted through the county's financial systems. 8 (3) The special district's annual revenues do not exceed one 9 hundred thousand dollars ($100,000). 10 (h) It is the intent of the Legislature in amending this section to 11 promote accountability over public revenues by establishing a new 12 program to review and report on financial and compliance audits 13 of special districts. It is further the intent of the Legislature that the 14 Controller shall have the primary responsibility for implementing 15 and overseeing this program. 16 (1) Financial and compliance audits shall be performed in 17 accordance with government auditing standards for financial and I 8 compliance audits. The audit guide prepared by the Controller 19 shall be used in the perfonnance of these audits. The Controller 20 shall also require that special district auditors conduct testing of 21 transactions considered high risk for abuse. The additional testing 22 shall occur during each district's audit cycle's regular financial 23 statement audit or as a separate audit within that cycle. Special 24 djstricts shall provide funding for all costs associated with 25 conducting the audit of high-risk transactions. Every audit report 26 shall specifically and separately address each of the compliance 27 requirements included in the audit guide, stating whether or not the 28 district is in compliance with those requirements. For each 29 cornpJiancc requirement included in the audit guide, every audit 30 report shall further state that the suggested audit procedures 31 included in the audit guide for that requirement were followed in 32 the making of the audit, if that is the case, or, if not, what other 33 procedures were followed. If a special distrjct is not in compliance, 34 the audit report shall state all instances of noncompliance. An 3 5 auditor shall not engage in financial or compliance audits unless, 36 within three years of commencing the first of the audits, and every 37 successive three years thereafter, the auditor completes a quality 38 control review in accordance with government auditing standards. 39 This review sha11 be conducted by the Controller. The time period 40 between commencement of the first audit, or completion of a 96 Book Page 103 -5-SB 1272 I quality control review and completion of a subsequent quality 2 control review, shall be calculated from the first day of the month 3 following commencement of the audit or completion of the quality 4 control review. To determine the practicability and effectiveness 5 of the audits and audit guide, the Controller shall, on an annual 6 basis, review and monitor the audit reports . The Controller shaJI 7 determine whether audit reports are in conformance with reporting 8 provisions of government auditing standards and shall notify each 9 special district and the auditor regarding each dete1mination. The IO special district contracting for the financial and compliance audit 11 sha1l include a statement that provides the Controller access to 12 audit working papers. 13 (2) (A) The Controller may perform quality control reviews of 14 audit working papers to determine whether audits are performed 15 in conformity with paragraph ( 1 ). The Contro1ler shall 16 communicate the results of his or her reviews to the auditor, and 17 the special district for which the review was performed, and shall 18 review his or her findings with the auditor. 19 (B) Prior to the performance of any quality control reviews, the 20 Controller shall develop and publish guidelines and standards for 21 those reviews. Pursuant to the development of those guidelines 22 and standards, the Controller shall provide opportunity for public 23 comment. 24 (C) (i) Notwithstanding any other provision of this code, the 25 Controller shall conduct a quality control review of the audit 26 working papers of the auditor who performed the audits for a 27 special district if either of the following applies: 28 (I) The Controller has reason to believe that public revenues 29 were not appropriately utilized. 30 (II) There is reason to believe that a special district report is 31 false, incomplete, or incorrect. 32 (ii) If the quality control review of the Controller indicates that 33 the audit was conducted in a manner that may constitute 34 unprofessional conduct as defined pursuant to Section 5100 of the 35 Business and Professions Code, including, but not limited to, gross 36 negligence resulting in a material misstatement in the audit, the 37 Controller shall refer the case to the California Board of 38 Accountancy. If the California Board of Accountancy finds that 39 the auditor conducted an audit in an unprofessional manner, the 40 auditor is prohibited from performing any audit of a special district 96 Book Page 104 SB 1272 -6- I for a period of three years, in addition to any other penalties that 2 the California Board of Accountancy may impose. 3 (D) In any matter that is referred to the California Board of 4 Accountancy under clause (ii), the Controller may suspend the 5 auditor from perfonning any special district audits pending final 6 disposition of the matter by the California Board of Accountancy 7 if the Controller gives the auditor notice and an opportunity to 8 respond to that suspension. The auditor shall be given credit for 9 any period of suspension if the California Board of Accountancy 10 prohibits the auditor from performing audits of the special district 11 under clause (ii). In no event may the Controller suspend an I 2 auditor under this subdivision for a period of longer than three 13 years. 14 (E) The legislative body of a special district may refer an 15 auditor of a special district to the California Board of Accountancy 16 for action pursuant to subparagraph (C) if an audit of a special 17 district was conducted in a manner that may constitute 18 unprofcssiona] conduct as defined by Section 5100 of the Business 19 and Professions Code, including, but not limited to, gross 20 negligence resulting in a material misstatement in the audit. 21 (3) The Controller shall conduct any additional audits that are 22 necessary to carry out any of his or her statutory duties and 23 responsibilities. Nothing in this section shall be construed to 24 authorize any special district, or any subcontractor or subrecipient, 25 to constrain, in any manner, the Controller from carrying out any 26 additional audits. However, to the extent that the required financial 27 and compliance audits do not provide the Controller with the 28 information necessary to carry out his or her responsibilities, the 29 Controller shall plan additional audits as appropriate to avoid any 30 unnecessary duplication of audit efforts. In performing these 3 I additional audits, the Control1er sha11, to the extent deemed 32 appropriate under the circumstances, build upon the work 33 performed during the required financial and comp]iance audit. The 34 Controller shall receive reimbursement from the special districts 35 for the costs of these additional audits. 36 (i) The sum of up to six hundred thousand dollars ($600,000) 37 is hereby appropriated annually from the General Fund to the 38 Controller as necessary to provide sufficient funding for one audit 39 manager, four audit specialists, and other expenses to implement 40 and operate the special district oversight program. 96 Book Page 105 -7-SB 1272 l SEC. 2. Chapter 7.5 (commencing with Section 60210) is 2 added to Division l of Title 6 of the Government Code, to read: 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 CHAPTER 7.5. SPECIAL DISTRICT GOVERNING BOARDS Article I. General Provisions 60210. (a) "Member" as used in this chapter, means a member of the governing board of a special district. (b) "Special district," as used in this chapter, means an agency of the state that is formed pursuant to a general or special act for the local performance of governmental or proprietary functions within limited boundaries and ts geveflted ey IHI elected ge•,•ef'fl.-iflg boarcl . /',. special clistriet aoes Hot ittelude that has a governing board all of whose members are elected by registered voters or landowners within the special district or whose members are appointed to fixed terms. "Special d;s1rict" excludes any special district having a gol'erning board consisting, in whole or part, qf ex officio members who are officers of a county, city, or another special district. Special district also excludes any special district whose members are appointees of those ojjicers, other than those who are appointed to serve for fixed terms. "Special district" excludes the state, a county, a city, a school district, a community facilities district, an air quality district or other regulatory district having responsibilities related to the protection of public hettlth;- 6f health. "Special district " also excludes a joint powers authority consisting solely of cities, counties, or one or more city and one or more county. 60211. Notwithstanding any other provision of law, the governing board of every special district shall comply with the requirements of this chapter. Article 2. Ethics 69220. (a) The g0'\11et'flfflg beat'd ef caeh speeiel disb'iet sllall pfo•,-ide eoafd memeefs :ftfta senior menagemeHt s~alf with the ability tmEI fesot1rees to eeeess ttl leasl ftflHtlttlly an orientotiofl eotm1e of the relevant stettttes BflB regt1Jetioos go\'Cffltflg official eeHCfflet aBEI the rele.,·m,t ethical issues ttttd lft\YS rcletiflg to le&bying itt eonsul:-tatioB with, er pttf'Sttafli to stBHt:iaffls estttblished 96 Book Page 106 SB 1272 -8- 1 by, the Fair Palitiee.-1 Praetiees Commissioo. Bo!tfd fflCfflbers HUl')' 2 eomply wit-b this see~iofl tluat1g¼'I Effliine lftli:riiHg eeutses, 3 't'ideatapee. f.raining, Of flM"endtmee at regional or statewide 4 i-n f,erson traiHiHg. The orioHttttaien eattrsc sbaH eoaver, hut :Bot be 5 Hlflited te, the Political Refofm Act of 1974 (Title 9 (eOfflmeneiHg 6 wit:h Seetiott 81000)), SeeheHs 1090, 1091 , ll26, 3205, aAd 7 87 J 05, attd e~er releY1tnt laws go._·emittg official eoRdttel. 8 (b) Al le1tst enee e·very h't'O yeafs each memher shalt at-teHd a 9 eeurse described iH sulHfrti~oe (a). 10 60215. (a) Each member of a governing board of a special 11 district, except a member who term of qffice ends before January 12 1, 2006, and each executive qtficer of a special district sen1ing on 13 January I, 2005, shall receive training in ethical standard<; of 14 conduct b~fore Januwy I, 2006. 15 (b) Each member of a governing board and each executive 16 officer who commences serving a special district on or after 17 January I, 2005, shall receive training in ethical standards of 18 conduct no later than one year from the first day of service to the 19 special district. Thereafter, members of governing boards and 20 executive officers shall receive training in ethical standards of 21 conduct at least once every two years. 22 (c) The governing board of a special district shall designate the 23 employees who qualify as executive officers for the purposes of this 24 section. 25 60216. (a) A ~pecial district, at least once annually, shall 26 offer to the members of its governing board and its executive 27 '-?fficers training in ethical standards <?f conduct. A special district 28 may identify conferences, seminars, or other courses that meet the 29 requirements <?(this section. 30 (b) A special district shall consult with the Fair Political 31 Practices Commission and the Attorney General to determine the 32 appropriate content for the training in ethical standards of 33 conduct. 34 (c) The requirements of this article shall be met by training in 35 ethical standard~ qf conduct and shall include information 36 regarding potential ethical abuses relating to, but not limited to, 37 all of the following matters: 38 (I) The direct and indirect business relationships among 39 members of governing board.,, contractors, and vendors, and 96 Book Page 107 -9-SB 1272 1 between members of governing boards and officers and employees 2 of other public agencies. 3 (2) The solicitation of campaign contributions by members of 4 governing boards, qfficers, or employees, and the receipt of 5 contributions.from bidders, contractors, or subcontractors. 6 (3) The use ofspecial districtjimd~for personal expenses. 7 60217. Notwithstanding Section 60215. a member qf a 8 governing board or an executive officer who serves more than one 9 special district shall only be required to meet the requirements of 10 this section once every two years without regard to the number of 11 J-pecial districts with which he or she is affiliated. A member of a 12 governing board or an executive qfficer who meets the 13 requirements of Section 60215 for one special district shall not be 14 required by another special district with which he or she is 15 affiliated to receive additional training in ethical standards of 16 conduct. 17 60218. A special district shall maintain records indicating the 18 dates that the members of its govern;,1g board and its executive 19 officers received training in ethical standards of conduct, and the 20 agency or entity that conducted the training. Notwithstanding any 21 other provision of law, a special district shall maintain these 22 records for at least five years after the members and executive 23 officers receive the !raining. A special district shall make these 24 records available to the public for inspection and copying. 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Article 2.5. Improper Governmental Activity 60221. For the purposes of this article: (a) "Employee" means any individual who is a member of the governing board of a special district or employed by a special district. (b) "Improper governmental activity" means any activity by a special district or by an employee that is undertaken in the performance of the employee's official duties, whether or not that action is within the scope of his or her employment, and that ( 1) is in violation of any state or federal law or regulation, including, but not limited to, corruption, malfeasance, bribery, theft of government property, fraudulent claims, fraud, coercion, conversion, malicious prosecution, misuse of government 96 Book Page 108 SB 1272 -10- I property, or willful omission to perfonn duty, or (2) involves gross 2 misconduct or gross negligence. 3 (c) "Person" means any individual, corporation, trust, 4 association, any state or local government, or any agency or 5 instrumentality of any of the foregoing. 6 (d) "Protected disclosure" means any good faith 7 communication that discloses or demonstrates an intention to 8 disclose information that may evidence (1) an improper 9 governmental activity or (2) any condition that may significantly 10 threaten the health or safety of employees or the public if the 11 disclosure or intention to disclose was made for the purpose of 12 remedying that condition. 13 (c) "Illegal order" means any directive to violate or assist in 14 violating a federal, state, or local law, rule, or regulation or any 15 order to work or cause others to work in conditions outside of their 16 line of duty that would unreasonably threaten the health or safety 17 of employees or the public. 18 (f) "Chief administrative officer" means the person employed l 9 by a special district, whether directly or by contracl, who has 20 primary responsibility for the special districts administration. The 21 title of the chief administrative officer may include, but is not 22 limited to, general manager; district manager, dislricf 23 administrator, or executive officer. 24 60221.5. (a) An employee may not directly or indirectly use 25 or attempt to use the official authority or influence of the employee 26 for the purpose of intimidating, threatening, coercing, 27 commanding, or attempting to intimidate, threaten, coerce, or 28 command any person for the purpose of interfering with the rights 29 conferred pursuant to this article. 30 (b) For the purpose of subdivision (a), "use of official authority 31 or influence" includes promising to confer, or conferring, any 32 benefit; effecting, or threatening to effect, any reprisal; or taking, 33 or directing others to take, or recommending, processing, or 34 approving, any personnel action, including, but not limited to, 35 appointment, promotion, transfer, assignment, performance 36 evaluation, suspension, or other disciplinary action. 37 (c) Any employee who violates subdivision (a) may be liable 38 in an action for civil damages brought against the employee by the 39 offended party. 96 Book Page 109 -11-SB 1272 1 ( d) Nothing in this section shall be construed to authorize an 2 individual to disclose information otl1erwise prohibited by or 3 under law. 4 60222. The county auditor of the county in which the special 5 district is located, or has its primary office, shaU administer the 6 provisions of this article and shall investigate and report on 7 improper governmental activities. If, after investigating, the 8 county auditor finds that an employee may have engaged or 9 participated in improper governmental activities, the county 10 auditor shall send a copy of the investigative report to the 11 employee's appointing power. Within ~ 30 days after receiving 12 a copy of the county auditor's investigative report, the appairttittg 13 pew-et' chief administrative officer shall either serve a notice of 14 adverse action upon the employee who is the subject of the 15 investigative report or set forth in writing its reasons for not taking 16 adverse action. 17 60222.5. Upon receiving specific information that any 18 employee or special district has engaged in an improper I 9 governmental activity, the county auditor may conduct an 20 investigative audit of the matter. The identity of the person 21 providing the information that initiated the investigative audit 22 shall not be disclosed without the written permission of the person 23 providing the information unJess the disclosure is to a law 24 enforcement agency that is conducting a criminal investigation. 25 60223. (a) If the county auditor detem1ines that there is 26 reasonable cause to believe that an employee or special district has 27 engaged in any improper govcmmcntal activity, he or she shall 28 report the nature and details of the activity to the hettEI af me 29 employiflg ageHey the ttppfepriale appotfttfflg !tttthority chief 30 administratlve officer, or if the county auditor has reason to 31 conclude that the activity may involve a violation of criminal law, 32 to the district attorney or county council, as the case may be. 33 (b) In any case in which the county auditor submits a report of 34 alleged improper activity to the bet1:EI ef the emp~eying ege.aey or 35 apprepriate appeiflliftg attt-herity chief administrative officer, that 36 individual shall report to the county auditor with respect to any 37 action taken by the individual regarding the activity, the first report 38 being transmitted no later than 30 days after the date of the county 39 auditor's report and monthly thereafter until final action has been 40 taken. 96 Book Page 110 SB 1272 -12- 1 (c) Every investigative audit shall be kept confidential except 2 that lhe county auditor may issue any report of an investigation that 3 has been substantiated, keeping confidential tho identity of the 4 individual or individuals involved, or release any findings 5 resulting from an investigation conducted pursuant to this article 6 that is deemed necessary to serve the interests of the pubJic. 7 (d) Tbis section shall not limh any authority conferred upon the 8 Attorney General or any other department or agency of 9 government to investigate any matter. 10 60223.5. (a) An employee or applicant for employment with 11 a special district wJ10 files a written complaint with his or her 12 supervisor, manager, or the 8ppeintiflg pewer chief administrative 13 officer alleging actual or attempted acts of reprisaJ, retaliation, 14 threats coercion, or similar improper acts prohibited by Section 15 60221.5 may also file a copy of the written complaint with the 16 perseBJtcl depertfflet1t chief administrative officer of the special 17 district, together with a sworn statement that the contents of the 18 written complaint are true, or arc believed by the affiant to be true, 19 under penalty of perjury. The complaint filed with the Elepart:meHt 20 chief administrative officer shall be filed within 12 months of the 21 most recent act of reprisal complained about. 22 (b) Any person who intentionally engages in acts of reprisal, 23 retaliation, threats, coercion, or similar acts against an employee 24 or applicant for employment for having made a protected 25 disclosure, is subject to a fine not to exceed ten thousand dollars 26 ($10,000) and imprisonment in the county jail for a period not to 27 exceed one year. 28 ( c) In addition to all other penalties provided by law any person 29 who intentionally engages in acts of reprisal, retaliation threats, 30 coercion, or similar acts against an employee or appJicant for 31 employment for having made a protected disclosure shall be liable 32 in an action for damages brought against him or her by the injured 33 party. Punitive damages may be awarded by the court where the 34 acts of the offending party are proven to be malicious. Where 35 liability has been established, the injured party shall also be 36 entitled to reasonable attorney's fees as provided by law. However, 37 any action for damages shall not be available to the injured party 38 unless the injured party has first filed a complaint with the 39 perseMel der,ert1ttent of the si,ceiel diskiet chief administrative 96 Book Page 111 -13-SB 1272 I officer pursuant to subdivision (a), and the department has issuecl, 2 or failed to issue,/ai/ed to issue findings. 3 ( d) This section is not intended to prevent en UtJJ'ffiflt'iflg power, 4 the chief administrative ~fficer, a manager, or supervisor from 5 taking, directing others to take, recommending, or approving any 6 personnel action or from taking or failing to take a personnel action 7 with respect to any employee or applicant for employment if the 8 &ppeiintittg pe·wer chief adminislrative officer, manager, or 9 supervisor reasonably believes any action or inaction is justified IO on the basis of evidence separate and apart from the fact that the 11 person has made a protected disclosure as defined in subdivision 12 (b) of Section 6022 I. I 3 ( c) In any civil action or administrative proceeding, once it has 14 been demonstrated by a preponderance of evidence that an activity 15 protected by this article was a contributing factor in the alleged 16 retaliation against a former, current, or prospective employee, the 17 burden of proof shall be on the supervisor, manager, or !lf)jfflintit1g 18 pewet the chief administrative officer to demonstrate by clear and 19 convincing evidence that the alleged action would have occurred 20 for legitimate, independent reasons even if the employee had not 21 engaged in protected disclosures or refused an illegal order. If the 22 supervisor, manager, or ttppemring pevl"er the chief administrative 23 officer fails to meet this burden of proof in an adverse action 24 against the employee in any administrative review, challenge, or 25 adjudication in which retaliation has been demonstrated to be a 26 contributing factor, the employee shall have a complete 27 affinnative defense in the adverse action. 28 (f) Nothing in this article shall be deemed to diminish the 29 rights, privileges, or remedies of any employee under any other 30 federal or state law or under any employment contract or collective 31 bargaining agreement. 32 60224. If the speeiol clistriet persmmel clepttrtffleRt chfrf 33 administrative officer determines that there is a reasonable basis 34 for an alleged violation or finds an actual violation of Section 35 60221.5, it shall transmit a copy of the investigative report to the 36 county auditor. All working papers pertaining to the investigative 37 report shall be made available under subpoena in a civil action. 38 96 Book Page 112 SB 1272 -14- I Article 3. Compensation and Benefits 2 3 60:225. (a) NotwitbstMclieg any other pfo'lision of la·,.-.,, the 4 go·,•efftfflg board of ony s13ecial dist:rict may by OffliflaHce pfo. ide 5 eompeHSttlioH lo mernbers of tac go'f'effi:tlig board, mdess !lHY 6 compeHsetion is ruoh:ibiteEI in its prir,cipal aet, ~e 8ft ttmotfflt nt>t to 7 eX::Ceed OHO lnmdr-ecl d0Ut1rs ($1 00) per day fef et1el=i day's 8 ftffeftt:ltmee et bottfd ffle~,gs, es defieed in Seetion 54952.2, and 9 notaieed pursuaHt to SeetioH 54954.:2, or #er eeeh clay's se,,-iee IO refldered es e aiember of the board h~· request ef the btn1:ft'l, t1et to 11 exceed si?t days 13er tno:Bth. 12 (b) Employees oftbe distriet one members efthe board shall be 13 reimbtl:fscd besea Ofl tlle li,tenutl R.e·tCHHe Service eeeeuBtable 14 pleH gt:tidefo1es, not to cxeeecl stendercl ll'tt•tel roifflbursement for 15 state efflpfoyees. 16 (e) AHy advance payments or reimbursements meee to 17 meH,bers fer euthori2!ed C*penses shell he sttppor!ed b:.,· reeeipts 18 fer the eetual a1ttettnt of the eJ<t}CftScs. 19 60225. {a) Notwithstanding any other prov;sion of /m1{ the 20 governing hoard of a special district may adopt an ordinance that 21 provides compensation to the members of that governing board, 22 pursuant to this section. 23 (b) The ordinance may provide for an amount of compensation 24 that shall not exceed one hundred dollars ($100) for each day of 25 service, not to exceed six days a month. 26 (c) Notwithstanding subdivision (b}. the ordinance may 27 provide for an amount of compensation that shall not exceed one 28 hundred dollars ($100) for each day of service, not to exceed l 0 29 days a month if the special districts popu/atio11 is greater than two 30 mi/l;on persons or if the special district~-annual total expenditures 3 I for general purpose transactions is greater than one hundred 32 million dollars ($100,000,000), as shown in the most recent 33 edition of the Special Districts Annual Report published by the 34 Controlle1: 3 S (d) Notwithstanding subdivision (b) or (c), •,vhere the principal 36 acl of lhe special district authorizes a maximum amount of 37 compensation that is less than one hundred dollars ($100).fCJr each 38 day of service, that lesser amount shall prevail. 39 (e) Notwithstanding any other provision of thi.s section, a 40 special district may provide monlhly salaries to the members of its 96 Book Page 113 -15-SB 1272 1 governing board tf those monthly salaries are authorized in the 2 .\pecia/ d;strict s principal act and the amount of the monlh~y 3 sa/a,y does nor exceed the maximum monthly amounls allowed 4 pursuant to subdivision (b) or (c). 5 (j) As used in this section, "day of service" means: 6 (I) Attendance at a meeting of that spedal district that is 7 conducted pursuant to the Ralph M Brown Act (Chapter 9 8 (commencing with Section 54950) of Division 2 of Title 5). 9 (2) Representation of that special district at a public event. 10 provided that the board qf directors has previously approved the 11 members represenlation at a board meeting and that the member 12 delivers a writfen report to the governing board regarding the 13 members representation Cit the next board meeting following the 14 pub/;c event. 15 (3) Representation of that special district al a public meeting l 6 or a public hearing conducted by another public agency, 17 including. but not /imired to, a city, counf),\ special distr;cf, school 18 district, community redevelopment agency, joint powe,·s agency, a 19 regional agency, board, or commission, a state agency. board, or 20 commission, the Legislature, or the Congress, provided that the 21 board qf' di,·ectors has previously approved !he members 22 representation at a board meeting and that the member delivers a 23 written report to the governing board regarding the members 24 representation at the next board meeting .following the public 25 meeting or public hearing. 26 (4) Participation in a training program on a topic that is 27 directly related to the special di.strict, including, but not Limited to. 28 training i11 ethical standards of conduct pursuant to Article 2 29 (commencing with Section 60215). provided that the board of 30 directors has previously approved the members participation at a 31 board meeting and thar the member delivers a written reporl to the 32 governing board regarding the members participation at the next 33 board meeting following the training program. 34 60225.5. (a) If the principal act of a special district 35 authorizes a special district lo reimburse the expenses of its 36 governing board members or employees. the special district shall 37 follow the Internal Revenue Services accountable plan guidelines. 38 Howeve1; the amount of reimbursement may hot exceed the 39 amounts permitted for state employees pursuant to Sections 96 Book Page 114 SB 1272 -16- l 599.615 to 599.638.1, inclusive, of Title 2 of the Caltfornia Code 2 o,/'Regulations. 3 (b) Any reconciliation of advance payments for expenses and 4 any reimbursement for expenses paid to a special distrkt '.t 5 governing board members or employees shall be supported by 6 receipts. 7 60226. (a) Notwithstanding Article 1 (commencing with 8 Section 53200) of Chapter 2 of Part 1 of Division 2, or any other 9 provision of law, the governing board of a special district by itself, 10 or as a pa1ty to a joint exercise of powers agreement, may not 11 provide group life insurance or health and welfare benefits, as 12 those terms are defined in Section 53200 to any person first 13 appointed to an appointment or first elected to a term of office that 14 begins on or after January 1, 2005, unless the person participates 15 on a self-pay basis. 16 (b) Notwithstanding any other provision of law, the governing 17 board of a special district may not provide retirement benefits to 18 any member first appointed or first elected to a tcnn of office that 19 begins on or after January 1, 2005. 20 21 Article 4. Audits 22 23 60230. (a) Special districts shall cause audits to be performed 24 in compliance with Section 26909. 25 (b) Jn addition to the requirements of Section 26909, the 26 governing board of a special district shall do all of the following: 27 ( l) Require the auditor to meet directly with the governing 28 board in an open session with the opportunity for public discussion 29 of the auditor's findings consistent with the requirements of the 30 Ralph M. Brown Act (Chapter 9 (commencing with Section 31 54950) of Djvision 2 ofTitlc 5). 32 (2) Prohibit a public accounting finn from providing audit 33 services to a special district if the lead audit partner, or 34 coordinating audit partner, having primary responsibility for the 35 audit, or the audit partner responsible for reviewing the audit, has 36 performed audit services for that special district in crtefl efjor more 31 than the six previous fiscal years , before thefiscal year being 38 audited. If the auditor-controller is performing these audi.ts rather 39 than a public accounting firm, then the lead auditor or coordinating 40 principals pcrfonning the audit within the auditor-controller's 96 Book Page 115 -17-SB 1272 1 office shall also comply with these requirements. The Controller 2 may waive this requirement ifhe or she finds no otherwise eligible 3 auditor is available at a reasonable cost to pcrfonn the audit. The 4 2005 calendar year is the base year for determining whether a 5 rotation shall be implemented. 6 (3) Revoke the authority of auditors or accountants to conduct 7 audits of the special district for three years when an independent 8 audit finds that the auditors or accountants failed to conduct a 9 thorough and complete audit. 10 (c) The auditor or accountant shall promptly notify the 11 Controller of any compliance violations. 12 (d) The Controller may audit any special district that is not in 13 compliance with the prescribed standards at the expense of the 14 special district. for more than 15 SEC. 3. Section 20201 of the Water Code is repealed. 16 SEC. 4. Section 20202 of the Water Code is repealed. 17 20202. In at1y ordiaftflee edepted pt1rst:1attt to tb is ehe.pter ta J 8 ioercase the a,nettttt of eampensttt:ien whieh ttu1:y ee FeeeiYed by 19 members ef t:he gorteming boftftl ef tt water district ebeve !.'he 20 ftffl:01:tnt of Ofie ht:1tte.rcd dollars ($ J 00) per day, the inereese may 21 t1ot eM:eeed. an fl:fflOt:1flt eqt1el to 5 pe,eefft, fer e&eb ealeRder year 22 .fellowing l:he operative date of the last aEijt:1stffient, of the 23 eompettsation which is teeeh·ecl when the ereiAanee is itdaptee. 24 No ordit:1ttnee adopted pm·sa-aftt te this ehaptcr sl'lall a.1:1thari2e 25 eompeflsetion for mere thftfl n tot11l of IO days in any ealeBEl:ar 26 month. 27 SEC. 5. No reimbursement is required by this act pursuant to 28 Section 6 of Article XIII B of the California Constitution for 29 certain costs that may be incurred by a local agency or school 30 district because in that regard this act creates a new crime or 31 infraction, eliminates a crime or infraction, or changes the penalty 32 for a crime or infraction, within the meaning of Section 17556 of 33 the Government Code, or changes the definition of a crime within 34 the meaning of Section 6 of Article XIII B of the California 35 Constitution. 36 However, notwithstanding Section 17610 of the Government 37 Code, if the Commission on State Mandates determines that this 38 act contains other costs mandated by the state, reimbursement to 39 local agencies and school districts for those costs shall be made 40 pursuant to Part 7 ( commencing with Section 17 500) of Division 96 Book Page 116 SB 1272 -18- I 4 of Title 2 of the Government Code. If the statewide cost of the 2 claim for reimbursement does not exceed one million dollars 3 ($1,000,000), reimbursement shall be made from the State 4 Mandates Claims Fund. 0 96 Book Page 117 Book Page 118 JAN-10-05 MON 16:47 J.0/20/04 (eJ From and after January 1, 2005, as tJ$e<J in t:tlis section, "tax" means any charge or ~ exaction of any kind imppsed by the local government, ex~pt: (1) a charge Imposed~• spea'fic servkx, provided dir«tly to the f}iJyor by tile local govemmenr, and not provtaea co Chose not t;harged, but only if the amount of the ct,ame does not exceed the reasct18ble msts to the 100'11 government DI the serv/ce provided,. and the service has not been previously Dnancsd by tax revenue. (2) a charge imposed tor the reasonable regularwy costs to rJJe local government of !Ssttfng licenses, petmitting, inspedio~ audit, and administrative adjudication. · (3) a charge imposed as a '°'7ditkln of property development If the amount bears a reasonable reli1tion to the development's probable ccsts ro the community. ( 4) a charge imposed for entr.tnce to or use of local government property. (5) a 'fine, penalty, or other mr,netilry charge Imposed by the judldal branch of government, or state or loaJ/ iK/ministrative agency, as a result of any violation of a statute or regulation. (f) Any tax, chat9e or exaction of any kind adopted after January 1, 2005, but prtor to the etrectlv.e clatJJ. of this Ad;. that-was not adopted In o:,mpfian~ with the requirements of subsection (.e) is void 12 months after the e1fed:iVe date of this Act unless the tax, charge or ~actJcn is reenacted fn comp(lance with the requlrements o! this section. SEC1'10N 9 Article XDIF of the calffomia CDrLUitution is added to read: AR.110.f XlH F LOCAL GOVERNMENT EXPENDITURE UMITS SEC 1. (a) The total amount of expenditul'QS made in any fiscal year by a my, rounty, .city and county, or a special district may 110t exceed the ~I amount of revenues rec:e~ by that entity in that fiscal year from its authorized taxes, fees and other charges, state.and federal ·tunds, and other sourtm of local revenue, induding reserve funds c:anied over from a prtor year, (b) F'or pui:pcses or this .section, auttiorizcd mxe:. lndude nil tax n:venues received by a loc.al agehcy pursuant to slate law, and by IOQil ordfnance approved by the voters or that local agency. Tax revenues authorized by ordinance pnor to November 5, 1986 st\all be deemed to have been approved by the voters for this purpMe. (CJ Fat pu,pases or this sectlon, "tax• smJII mive the meaning a.s prescribed In Altlde XIII c, Section 2 of the califomla Constitution. SECTJ:ON :1.0 The Colifomia Deficit Prevention /id shaU be libel.Illy construed to effe<:tuate Its purpose of ensuring that the state enacts responsible, balaoced budgets that arq sustainable over time within available resources. SECFXON 11 If any provision of this M, or part thereof, or the application of this Act to any per.;on or drwmstance Is held lnvelld or unc::onstib,ltional, that invalldlty shall not affect other provisions or applications of thlS measure that can be given e~ wtthout the Invalid provision or application, and to this end the provisions of this measure are severable, ~gc 10of11 Book Page 121 P. 04/05 JAN-10-05 HON 16:47 10/2oj04 SECTION 12 In tha event ttlat this measure-and anctiler measure or measures relating b.) the 1eg1S1at1ve or l~I votes required to enact:~ or tees or limit state or local expenditures shall appear on the same itatewlde dealon batl~ the provisions r:L the other measures shall be deemed to be in conftlct With this measure. ln the event lhat this measure shall l'QGeive a gret.1ber number of affirmative \JOtes, the proVislons of this measure shall prevan in their entirety, and the provisions of the other mqsUni! relating to the legislative votes ~l.llred to Increase taxes or enact fees or l~mit $te or local e,q,endlbJ~ shall be null and void. Page 1lofll Book Page 122 P. 05/05 - FAHR COMMITTEE Meeting Date To Bd. of Dir. 2/09/05 AGENDA REPORT Item Number Item Number FAHR0S-11 Orange County sanitation District FROM: Carol Beekman, Director of Communications and Administrative Services SUBJECT: Communications and Administrative Services Strategic Plan FY 2004-05/Quarterly Update GENERAL MANAGER'S RECOMMENDATION For information only SUMMARY This quarterly review provides an update on the objectives from the FY 2004-05 Strategic Plan. PRIOR COMMITTEE/BOARD ACTIONS FY 2004-05 Plan received and filed by Board on 7/21/04. Quarterly update presented at September 2004 FAH R. 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. C8J Not applicable (information item) ADDITIONAL INFORMATION Communications and Administrative Services Objectives 1. Biosolids Biosolids Advisory Committee has held 12 meetings since 9/28/04. The group toured composting and dryer sites in December. Report will be presented at March OMTS. 2. Community Education and Outreach Program a) Sewer Science -First class scheduled in March 2005 at Edison High in Huntington Beach to advanced placement science classes. H:ldeptlagenda\FAHRIFAHR200510205105-11 Communication Plan update doc Revised: 06104103 Book Page 123 Page 1 b) Tours and Education -Conducted 16 tours to 284 guests in the 2nd Quarter, including foreign visitors from Universidad Autonoma de Baja California, Grupo Hidrosanitec Guadalajara Mexico, and the Department of Pollution Control State Environmental Protection Agency Beijing China. c) Assisted the Orange County Department of Education's "Inside the Outdoors" science study program in developing a new program called "Drip Drop." This new program will teach 5th graders about local watersheds and how they impact water quality. 3. Construction/Capital Improvement Program (CIP) Outreach Communications provided briefings, collateral materials, media alerts and other information to the community and Board on the Bushard Trunk Sewer Replacement Project, Ellis Ave. pump station, A St. and 14th street pump stations, and three Tustin projects. During this past quarter, OCSD has notified close to 10,000 residents, businesses and schools in surrounding project areas via information pieces about construction activity in their vicinity. 4. Corporate Identity Program OCSD's corporate identity graphics standards manual scheduled to be completed by end of fiscal year. 5. External Communications Wrote and distributed seven press releases, including: 12/09/2004: Fats, Oils and Grease (FOG) Abatement Program Launched 11/22/2004: Holiday Dinners Stick to Your Ribs and Your Pipes 11/16/2004: OCSD, EPA and State Water Board Sign Consent Decree 11/09/2004: OCSD Commissions New Ocean Monitoring Vessel 11/05/2004: Photo Opportunity -Commissioning a New Weapon to Protect Orange County's Coastline 10/05/2004: As Drought Continues, Residents, Businesses Urged to Use Less Water, Especially for Landscape Irrigation 9/30/2004: Groundwater Replenishment System Outreach Efforts Named "Public Education Program of the Year" 6. Fats, Oils and Grease (FOG) Community Education a) Developed a plan for public education on FOG in the Tustin area that launched on December 6, 2004. b) Articles on the FOG campaign ran in the Orange County Register on December 11 and in Tustin News on January 6, 2005. c) Posters were distributed to Tustin City Hall. H:ldept\agenda\FAHRIFAHR200510205\05-11 Communicalion Plan update.doc Revised: 06/04/03 Book Page 124 Page 2 d) Cox Cable and Comcast both agreed to broadcast FOG public service announcements to their regional service areas in January. 7. Groundwater Replenishment (GWR) System a) GWR System was awarded the "Flex Your Power" award for the energy savings it is designed to achieve in December. b) Successful legislative outreach led to GWR System being awarded $2.5M in additional federal funding. 8. Internal Communications a) Updated content on MyOCSD with 48 news articles. b) Developed template for on line Pipeline newsletter. c) Developing Asset Management Communications Plan . 9. Legislative Advocacy a) OCSD received $800,000 final markup in the House version of EPA's budget bill. b) Tour scheduled with Assembly members Devore, Huff, Walters and Tran on February 4, 2005. 10. Board Information a) D.C. travel survey prepared for January Board. b) Reception held for Wes Bannister to honor him as new chair of Metropolitan Water District. c) New Board members reception on January 26, 2005. d) New Board orientation scheduled for February 16, 2005. e) Drafted eight resolutions for Board members. 11. Records Management a) In the process of updating OCSD's Retention Schedule to conform to new legislation on Destruction of Records for Special Districts (AB-474). OCSD is in compliance; however, there are three sections that can be further clarified. b) 19 Public Records Act requests have been processed and documented. 12. Reprographics User satisfaction survey developed and implemented during 2nd Quarter. Results: 45 sent, 31 returned (86%). Overall satisfaction with Copy Center showed 85% satisfied. 13. Other Administrative Services Mail service pick up and delivery enhanced that now qualifies OCSD for presort rates to save on postage costs. H:ldeptlagenda\FAHRIFAHR2005\0205\05-11 Communication Plan update.doc Revised: 06/04/03 Book Page 125 Page 3 ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS N/A H:ldepllagenda1FAHRIFAHR2005\0205\05-11 Communicalion Plan update.doc Revised: 06/04/03 Book Page 126 Page 4 ORANGE COUN1Y SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 i Investment Management Program Orange County Sanitation District Strategy Review for the Period September 30, 2004-December 31, 2004 Agenda I. Performance & Market Review 11. Economic Outlook & Strategy Ill. Organizational Update PIM C 0 Where We Were and What We Thought The Economy Appeared Strong ... Strategy But, PIMCO Saw Some Weakness • Structured below-index duration; • Significant fiscal and monetary rates should trend up • Fed will tighten, but less than stimulus was fueling strong growth market expects -Strong corporate profits • Focused on intermediate maturities; and improved balance sheets the yield curve remained steep • Fiscal stimulus will peak and become a drag on growth • Outside the U.S., China • Limited exposure to corporates and contributed to global aggregate mortgages; tight spreads did not • The bond market will return low demand reflect systemic risks single digit returns • Market expected dramatically • Emphasized TIPS as real yields • Europe will remain the laggard higher rates appeared attractively priced of the global economy I I 4 PIM C 0 PIMCO Update -Continuing to Improve to Meet Client Needs Focused on Managing Client Assets Committed to Client Education via PIMCO Institute Positioned to Develop Strategies to Meet Client Needs Assets and staffing as of December 31, 2004. • Assets under management: $445 B -Process and philosophy unchanged -Majority of growth coming from non-U .S. offices and new market strategies • Staff update -226 investment professionals • Re-branding program implemented by parent company -Allianz Global Investors • 2005 PIMCO Institute sessions in Newport Beach -Scheduled from September 29th through October 21 st • Visiting client seminars and custom client education opportunities -"Derivatives and Risk Management" • Long Duration Asset/ Liability Symposium • Issues and Answers Conference Calls • Ongoing and special publications available at PIMCO.com • Provide solutions and insights for our clients: -Long duration -Real assets -Asset allocation 13 PIM C 0 Building on Fixed Income Expertise to Meet Client Needs Strategy Description Assets Traditional: Total Return Long Duration Moderate Duration Low Duration Enhanced Cash Money Market Stable Value Sector-Specific: Credit: Investment Grade Corporates High Yield Diversified Income CBO/CLO Mortgages Global Emerging Markets Municipals Real Return: Real Return Commodity Real Return All Asset, All Asset All Authority RealEstateRealReturn Equity PLUS: StocksPLUS and StocksPLUS Total Return Other PIMCO's flagship style: Core/ Core Plus Focus on long-term bonds Total return with intermediate duration Total return with shorter duration Active cash management and LIBOR-based strategies Maximize income while preserving capital Strategies that use book value wrappers High quality corporate bond portfolios Emphasis on upper tiers of high yield market Global credit combining corporate and emerging markets debt Collateralized bonds/loan obligations Emphasis on management of mortgage pass-throughs Non-U .S. and global approaches Focus on solid credits with improving economic fundamentals Tax-efficient total return management TIPS and other inflation-hedging strategies Commodity-linked exposure backed bya bond portfolio Tactical allocation among PIMCO funds Real Estate-linked exposure backed bya bond portfolio Combines passive equity index exposure with active bond management Includes private placement investments and convertibles $182.7 13.4 8.5 20.6 21.5 0.6 16.0 9.0 19.2 1.7 6.9 8.7 52.3 7.8 7.6 26.9 5.9 4.6 0.0* 29.7 0.2 Total Assets Under Management: $445.7 B Assets as of December 31, 2004; Growth year-to-date since December 31 , 2003. Potential differences in asset totals are due to rounding. * RealEstateRealReturn total assets are $250 M, of which $148 Mare accounted for by All Asset strategies. 14 -$10.5 3.6 1.2 (0.8) 10.9 0.0 (0.6) 3.9 0.6 1.3 0.3 (0.2) 15.6 2.5 (0.4) 10.3 4.4 3.6 0.0 6.0 (0.3) $72.7 B PIM C 0 L L Capital Markets Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Active Management Overview Market Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Domestic Fixed-Income ...................................................... 15 Asset Class Risk and Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Investment Manager Asset Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Investment Manager Returns .................................................. 18 Manager Analysis PIMCO-Liquid Operating Monies PIMCO-Liquid Operating Fund Bond Portfolio Characteristics Portfolio Characteristics Detail .............................................. 20 21 22 23 Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 II l L L L L L L L L Investment Manager Asset Allocation /I The table below contrasts the distribution of assets across the Fund's investment managers as of December 31, 2004, with the distribution as of September 30, 2004. The change in asset distribution is broken down into the dollar change due to Net New Investment and the dollar change due to Investment Return. Asset Distribution Across Investment Managers Ill December 31, 2004 September 30, 2004 Market Value Percent Net New Inv. Inv. Return Market Value Percent Domestic Fixed Income Long Term Operating Fund 368,038,928 83.43% 3,700,000 1,178,342 363,160,587 83.31 % Liquid Opera Ling Monies 73,090.138 16.57% (963) 351,707 72,739,393 16.69% Total Fund $441,129,066 100.0% $3,699,038 $1,530,049 $435,899,980 100.0% Orange County Sanitation District /I Investment Manager Returns The table below details the rates of return for the Sponsor's investment managers over various time periods ended December 31, 2004. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund's accounts for that asset class. Returns for Periods Ended December 31, 2004 Last Last Last Last Last 3 5 9-1/4 uarter Year Years Years Years Domestic Fixed-Income Long Term Operating Fund 0.32% 2.31% 4.55% 6.03% 6.04% Liquid Operating Monies 0.48% 1.35% 1.55% 3.25% 4.28% Net of Fees 0.45% 1.20% 1.40% 3.10% 4.13% Market Indicators LB 1-5yr Govt/Credit 0.15% 1.85% 4.41% 6.21% 5.94% ML 1-3yr Govt/Corp 0.10% 1.21% 3.33% 5.32% 5.54% ML 1-5yr Govt/Corp 0.15% 1.76% 4.29% 6.12% 5.97% ML 1-5yr G/C excl. BBBs 0.11% 1.60% 4.09% 6.04% 5.90% Treasury Bills 0.48% 1.33% 1.42% 2.95% 3.97% Total Fund 0.35% 2.08% 4.15% 5.71% 5.85% Orange County Sanitation District • r L Confidential -For Callan Client Use Only The list below represents those investment management organizations who are clients of Callan Associates' Institutional Consulting Group (ICG) and/or the Callan Investments Institute (CII) as of December 31 , 2004. In no way do these relationships affect the outcome or process by which any of Callan's services are conducted. Because Callan's client list of investment manager changes periodically, the information below may not reflect very recent changes that are not yet updated in our database. You are welcome to request of list of Callan's investment manager clients at any time. Manager Name 40j86 Advisors, Inc. ABN AMRO Asset Management (USA) LLC Acadian Asset Management, Inc. Affiliated Managers Group, Inc. AIG Global Investment Group Alliance Bernstein Allstate Investments LLC American Century Investment Management American Express Asset Management AmSouth/Investment Management Group AMVESCAP Retirement Ariel Capital Management, Inc. Ark Asset Management Co., Inc. Atalanta Sosnoff Capital, LLC Atlanta Capital Management Co., l.L.C. AXA Rosenberg Investment Management Babson Capital Management, LLC Baillie Gifford Overseas Ltd. Baird Advisors Baird Investment Management Banc One Investment Advisors Bank of America Bank of New York Asset Management Barclays Global Investors Baring Asset Management Barrow, Hanley, Mewhinney & Strauss, Inc. Batterymarch Financial Management, Inc. Bay Isle Financial LLC Bear Stearns Asset Management BL-SH Investment Counsel, LLC Boston Company Asset Management, LLC (The) Boston Partners Asset Management, L.P. Brandes Investment Partners, L.P. Brandywine Asset Management, Inc. Brown Brothers Harriman & Company Cadence Capital Management Capital Guardian Trust Company Capri/Capital Advisors CastleArk Management, LLC Causeway Capital Management CDC-IXIS Asset Management Associates Chartwell Investment Partners Chicago Equity Partners, LLC Citigroup Asset Management CitiStreet-Citigroup Asset Management Columbia Management Group Inc. Columbus Circle Investors Cornerstone Real Estate Advisers Cramer Rosenthal McGlynn, LLC Credit Suisse Asset Management Davis Hamilton Jackson & Associates Page 1 of 4 CII y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y ICG y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y r L L Confidential -For Callan Client Use Only The list below represents those investment management organizations who are clients of Callan Associates' Institutional Consulting Group (ICG) and/or the Callan Investments Institute (CII) as of December 31 , 2004. In no way do these relationships affect the outcome or process by which any of Callan's services are conducted. Because Callan's client list of investment manager changes periodically, the information below may not reflect very recent changes that are not yet updated in our database. You are welcome to request of list of Callan's investment manager clients at any time. Manager Name John Mcstay Investment Counsel JPMorgan Fleming Asset Management Julius Baer Investment Management Kayne Anderson Rudnick Inv. Mgmt. LLC Knightsbridge Asset Management, LLC Lazard Asset Management Lehman Brothers Inc. Loomis, Sayles & Company, L.P. Lord Abbett & Company LSV Asset Management MacKay-Shields LLC Marvin & Palmer Associates, Inc. McMorgan & Company LLC Mellon Global Securities Services Mellon Institutional Asset Management Merrill Lynch Investment Managers Metropolitan Life Insurance Company Metropolitan West Capital Management, LLC MFS Investment Management, Inc. Mondrian Investment Partners Limited Montag & Caldwell, Inc. Morgan Stanley National City Investment Management Company Neuberger Berman, LLC Nicholas-Applegate Capital Management Northern Trust Global Investment Services Northern Trust Value Investors NorthPointe Capital Nuveen Asset Management/Nuveen Investments NWQ Investment Management Company OFI Institutional Asset Management Old Mutual Asset Management Oppenheimer Capital Pacific Financial Research, Inc. Pacific Investment Management Company Paradigm Asset Management Co., LLC Pareto Partners PBHG Funds Inc. Penn Capital Management Peregrine Capital Management, Inc. Phoenix Investment Partners, Ltd. Pioneer Investment Management, Inc. Post Advisory Group Principal Financial Group, The Principal Global Investors Provident Investment Counsel Prudential Investment Management Prudential Retirement Putnam Investments Ranger Investments Management, L.P. RCM Page 3 of 4 CII y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y ICG y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y l L Confidential -For Callan Client Use Only The list below represents those investment management organizations who are clients of Callan Associates' Institutional Consulting Group {ICG) and/or the Callan Investments Institute (CII) as of December 31, 2004. In no way do these relationships affect the outcome or process by which any of Callan's services are conducted. Because Callan's client list of investment manager changes periodically, the information below may not reflect very recent changes that are not yet updated in our database. You are welcome to request of list of Callan's investment manager clients at any time. Manager Name Reams Asset Mana~ement Company Rice, Hall, Jame.s & ,A;ssoclat!;)_S Robj:j'oo USA Rorer Asset Management Rothschild Asset Management, Inc. Sawgrass Asset Management, lLC Schroder Investment Management NorthAmerica Inc. SEI Investments Seix Investment Advisors, Inc. SeJfgman (J, & W.) & ComP.any, lhc, Sane.ca Capital Managen'.ient LLe Sentinel Real Estate Corporation Sil lhvestment Assooiafes, Inc. Southeastern Asset Management. Inc. Standish Mellon Asset Management Company State Street Global Advisors Stone Riage Investment PartJ:iers Stratt@n Managen:1ent Systematic Financial Management T. Rowe Price Associates, Inc. TAMRQ €apital Partners, LLC Taplrn, Canida & l'fabacht Thomas Weisel Asset Management LLC Thompson, Siegel & Walmsley, Inc. TIAA-CREF TimesSquare Capital Mahag~men,, Inc. Todd Investment Advisors, Inc. Transamerica Investment Management Trusco Capital Management. Inc. "fi'CW Asset Manag~,nentCompany Turner Investment Partners UBS Global Asset Management USAIII nz lrJ;',lester·Servlc;~, LLC ,U.S. T~usl Ass.et Managef:Tlent- Utendahl Capital Management, L.P. Vanguard Group (The) Victory Glapital Management Inc. WEDGE Capita! Management Weiss. Peck & Greer Investments Wellington Management Company, LLP Wells Capftal Mijnagement WestAM Western Asset Management Company Westfield Capital Management Westwood Management Corporation WIiiiam Blai~ & Co., Inc. William D. Witter, Inc. Page 4 of4 CII y y y y. V V y y y y y y y y y y y y y ')( y y y y y y y ICG y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y CAILAN ASSOCIATES.~ Atlanta Consulting Office Six Concourse Parkway, Suite 2900 Atlanta, Georgia 30328 Phone: (770) 804-5585 Chicago Consulting Office 120 North LaSalle Street, Suite 2100 Chicago, Illinois 60602 Phone: (312) 346-3536 Denver Consulting Office 1660 Wynkoop Street, Suite 950 Denver, Colorado 80202 Phone: (303) 861-1900 New York Consulting Office 163 Madison Avenue, 6th Floor Morristown, New Jersey 07960 Phone: (973) 993-9595 San Francisco Consulting Office 101 California Street, Suite 3500 San Francisco, California 94111 Phone: (415) 974-5060 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Gary Streed, Director of Financeffreasurer Originator: Michael White, Controller Meeting Date 2/09/05 Item Number FAHR05-01 SUBJECT: TREASURER'S REPORT FOR THE MONTH OF JANUARY 2005 GENERAL MANAGER'S RECOMMENDATION Receive and file Treasurer's Report for the month of January 2005. SUMMARY To Bd. of Dir. 2/23/05 Item Number Pacific Investment Management Co. (PIMCO), serves as the District's professional external money manager, and Mellon Trust serves as the District's third-party custodian bank for the investment program. Some funds are also deposited in the State of California Local Agency Investment Fund for liquidity. The District's Investment Policy, adopted by the Board, includes reporting requirements as listed down the left most column of the attached PIMCO Monthly Report for the "Liquid Operating Monies" and for the "Long-Term Operating Monies" portfolios. The District's external money manager is operating in compliance with the requirements of the Investment Policy. The portfolio contains no reverse repurchase agreements. As shown on page 2 of the attached PIMCO's Performance Monitoring and Reporting Report for the Long-Term Operating Monies, there is one investment policy compliance exception. It pertains to the holding of one security 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 rating exception pertains to the holding of a United Airlines (UAL) Asset Backed Security with a par value of $1.6 million, representing 0.43 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+. Both rating agencies have since withdrawn their ratings, Moody's in February 2004 and Standard & Poor's in June 2004. 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 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 this security very closely. H:ldepllfin\21 DICRANEIFAH RIF AHR2005\FEB\Agenda Report_ TREASRPT020905.doc Page 1 Historical cost and current market values are shown as estimated by both PIMCO and Mellon Trust. The District's portfolios are priced to market ("mark-to-market") as of the last day of each reporting period. The slight differences in value are related to minor variations in pricing assumptions by the valuation sources at the estimate date. BUDGET IMPACT D This item has been budgeted. (Line item : ) 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 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). These reports accurately reflect all District investments and are in compliance with the District's Investment Policy and previous requirements of California Government Code Section 53646. Government Code Section 53646 mandated that annual investment policies and quarterly reports be rendered to the legislative body. AB2853, which was signed on September 29, 2004, amends Government Code Section 53646 to remove the requirements; the rendering of these documents is optional. Although the Annual Investment Policy and Monthly and/or Quarterly Reports are no longer required, we believe it prudent to continue providing the legislative bodies with these documents. In addition, Government Code Section 53607 has not been repealed that requires an annual delegation of investment authority to the Treasurer and the submission of reports that include investment transactions by month. 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. H:ldeptlfin\21 0\CRANE\FAHRIFAH R2005\FEB\Agenda Report_ TREASRPT020905.doc Page 2 Book Balances Estimated Investment Accounts January 31, 2005 Yield(%) State of Calif. LAIF $21,215,638 2.26 Union Bank Checking Account 1,652,496 2.04(1) PIMCO -Short-term Portfolio 73,007,031 2.57 PIMCO -Long-term Portfolio 365,161,845 3.52 Petty Cash 4000 N/A TOTAL $46:1 04:1 Q:10 3.31 Debt Service Reserves w/Trustees $IQ 249 096 3.44 (1) This is the annualized yield for the month of December. The January annualized rate was not available as of the date of this report. ALTERNATIVES N/A CEQA FINDINGS N/A 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:bg H:ldepllfin\21 0ICRANEIFAHRIFAHR2005\FEB\Agenda Report_ TREASRPT020905.doc Page 3 Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund January 31, 2005 Par Value Book Value Market Value Balance January 1, 2005 $31,508,111 $31,508,111 $31,508,111 Deposits: 1/21/2005 11,400,000 11,400,000 11,400,000 Total Deposits 11,400,000 11,400,000 11,400,000 Quarterly Interest Distribution 107,527 107,527 107,527 Withdrawals: 1/5/2005 (2,800,000) (2,800,000) (2,800,000) 1/14/2005 (4,000,000) (4,000,000) (4,000,000) 1/19/2005 (4,000,000) (4,000,000) (4,000,000) 1/28/2005 (1,500,000) (1 ,500,000) (1,500,000) 1/31/2005 ~9,500,000} (9,500,000} {9,500,000} Total Withdrawels (21,800,000) (21,800,000) (21,800,000) Balance January 31, 2005 $21,215,638 $21,215,638 $21,215,638 Rate Yield 2.26 2.26 2.26 2.26 2.26 2.26 2.26 2.26 2.26 2.26 2.26 2.26 2.26 2.26 2.26 2.26 2.26 2.26 PIM C 0 February 7, 2005 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 January in addition to an analysis of the strategies undertaken in the Orange County Sanitation District's Long-Term and Liquid 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: Longer maturity U.S. Treasury yields fell in January following weaker than expected economic data. Despite short-term expectations of Fed tightening, U.S. Treasuries rallied on disappointing job numbers, weaker than expected GDP growth and benign inflation. The yield on the benchmark 10-year Treasury note finished the month at 4.13 percent, 9 basis points lower than the prior month; Treasuries gained 0.73 percent. TIPS underperformed their nominal counterparts, with the Lehman Brothers Global Real U.S. TIPS index returning 0.01 percent for the month. Mortgage-backed securities returned 0.53 percent, exceeding Treasuries by 25 basis points after adjusting for duration. The credit sector, represented by the Lehman Credit Index, returned 0.79 percent, outperforming Treasuries for the month by 3 basis points. January began with a weak employment report, indicating that the economy created only 157,000 new jobs in December, lower than the consensus estimate of 180,000. Consumer confidence rose slightly in January to a six month high as consumer perceptions of current business and employment conditions improved. On the inflation front, a decline in energy prices caused consumer prices to fall 0.1 percent in December, lowering the annual rate of inflation to 3.3 percent. Excluding food and energy items, core inflation increased 0.2 percent, placing the annual rate at 2.2 percent. Lastly, the Bureau of Economic Analysis reported that fourth quarter real GDP grew only 3. I percent, well below third quarter GDP growth of 4 percent. Increases in consumer expenditures, business spending on equipment and inventory levels were offset by the widening trade deficit, which subtracted as much as 1. 7 percent from headline real GDP growth. Mr. Mike White, CPA Orange County Sanitation District February 7, 2005 Page2 Treasury yield changes during the month of January are summarized as follows: • 3-month bills: +25 basis points to 2.46% • 6-month bills: +15 basis points to 2.72% • 2-year notes: +21 basis points to 3.27% • 5-year notes: +9 basis points to 3.69% • IO-year notes: -9 basis points to 4.13% • 30-year notes: -24 basis points to 4.59% Performance Attributio11: Long-Term Portfolio The Long-Term portfolio that PIMCO manages on behalf of Orange County Sanitation District returned 0.01% on a total return basis for the month of January, outperforming the Merrill Lynch 1-5 year Government Corporate Index by 5 basis points. The following points summarize returns for the month ended January 31: • The Long-Term portfolio outperformed the benchmark by 5 basis points for the month. • For the twelve-month period, the Long-Term portfolio returned 1.89%, outperforming the benchmark by 55 basis points. • Portfolio duration, below the index, was positive for monthly performance as interest rates increased for short/intermediate maturity issues. • Yield curve positioning similar to that of the index was neutral for performance. • An underweight exposure to corporates was negative for performance, as corporates slightly outperformed Treasuries on a duration-adjusted basis. • Exposure to mortgage-backed securities was positive for relative performance as the sector outperformed Treasuries on a duration-adjusted basis. • Substituting Treasury Inflation Protected Securities for nominal Treasuries was Negative for performance as short and intermediate TIPS lagged their nominal counterparts during the month. Liquid Portfolio The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District generated a total return of0.19% during the month of January, performing in line with the 3-month Treasury Bill Index. The following points summarize returns for the period ending January 31: • The Liquid portfolio performed in line with the benchmark for the month. • For the twelve-month period, the Liquid portfolio returned 1.42%, outperforming the benchmark by 8 basis points. • Use of higher yielding securities such as commercial paper and short-term notes contributed to performance. Mr. Mike White, CPA February 7, 2005 Page 3 Orange County Sanitation District Outlook and Strategy: Global growth will slow over the next year as the U.S. recovery cools and Europe and Japan prove unable to pick up the slack. Higher unit labor costs and a weaker dollar will create some inflationary pressure, but lingering overcapacity worldwide will limit this effect over a cyclical time frame. The yield on the benchmark I 0-year Treasury will range between 4 and 4.5 percent, with the main risk to this forecast being a breakout of 25 basis points on the high side. Important aspects of our outlook are: • • • Headwinds to U.S. Growth -Slack in the U.S. economy is closing but growth will be constrained by: I) removal of accommodative monetary and fiscal policy, as the Federal Reserve tightens and fiscal stimulus fades; 2) a moderating housing cycle; 3) relatively modest corporate investment; and 4) a lack of pent-up consumer demand combined with a heavy consumer debt burden. Vendor Financing for U.S. Consumption -With its low savings rate, the U.S. must rely on foreign lenders, mainly Asian central banks, to finance its prodigious consumption and the trade deficit that accompanies it. PIMCO is skeptical that China and Japan will continue to provide this "vendor financing" on agreeable terms over the long run. In the short run, however, the game will go on, since it keeps interest rates low for U.S. borrowers and mitigates appreciation of the Chinese and Japanese currencies vs. the dollar, which would hurt export-led growth in those countries. Europe and Japan to Lag -Europe will not add much to global growth. The European Central Bank has been reluctant to cut rates to stimulate domestic demand; exports are vulnerable to a strong euro; and business and consumer confidence remain weak. Japan's contribution to growth will also lag that of the U.S. Japan's export-led recovery will be constrained as China moves to cool down its economy to curtail inflation. Emerging Markets Add Stability -After painful currency and financial crises in the late 1990s, many EM economies opted for reform and restructuring. The results have been impressive: an increasing share of global GDP, accumulation of record currency reserves and growing trade surpluses. The global economy looks stable, with prospects for modest growth, low volatility in financial markets and range-bound interest rates. PIMCO remains concerned, however, about a tilt in the direction of either deflation or inflation. The uncertain pace of investment and hiring could tilt the balance of risks toward deflation. On the other hand, monetary policy remains simulative despite the beginning of Fed tightening. Easy money combined with higher commodity prices and dollar weakness could swing the economy back in the other direction. A prudent approach in this environment is to stay defensive and well diversified to avoid negative consequences of being on the wrong side of any market dislocation. Key strategies will include: • Tactically Flexible Interest Rate Strategies -Rates are more likely to rise than fall over a secular, or three to five year time frame. We will therefore be wary of extending duration beyond benchmark levels. At the low end of our forecasted interest rate range, we will target duration about 0.5 year below the index and then shift toward a neutral posture as rates move back up. • Structural Yield Curve Exposure -While short/intermediate maturities are close to full valuation, we will retain a modest structural emphasis here. Because the short/intermediate portion of the Mr. Mike White, CPA Orange County Sanitation District February 7, 2005 Page4 yield curve remains relatively steep, this "bulleted" posture can provide extra yield with less price risk than a "barbell," or mix of short and long term bonds. In addition, longer maturities would be more vulnerable if the economy tilted toward inflation. • Retain Current Exposure to Core U.S. Sectors but Do Not Increase Allocations -Tight corporate yield premiums offer too little reward to bear the risk of negative credit events if the economy were to slow. While mortgage-backed bonds offer structural yield advantage and high credit quality, they are fully valued for now as a result of unusually heavy demand from banks, which are taking advantage of mortgages' attractive "carry" in a steep yield curve environment. • TIPS as an Out-of-Index Alternative -Better risk/reward trade-offs can be found outside of core sectors. At current break-even inflation levels, real return bonds continue to provide an effective hedge against secular inflation risk. They are also less volatile than nominal bonds in a rising rate environment. We look forward to discussing these and other topics with you in the near future. Best regards, Christine Telish, CF A Vice President John M. Miller, CFA Senior Vice President Orange County Sanitation District for the month ending January 31, 2005 Total Return Account -203 With Accrued Interest Market Value Book Value Yield to Maturity Short Term Account -603 368,021,073 367,062,892 3.52 With Accrued lnterest Market Value Book Value Yield to Maturity 73,230,455 73,259,344 2.57 Without Accrued Interest 365,147,038 364,188,858 3.55 Without Accrued Interest 73,064,054 73,092,944 2.58 MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 31 January 2005) 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%1NTERESTRATECHANGE 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: Commentary • The Liquid portfolio outperformed the benchmark by I basis point for the month, and by 4 basis points fiscal year-to-date. • PIMCO's emphasis on higher yielding securities such as commercial paper and short-term notes contributed to performance. H:\deptllin\220\geggle\FAHRILIQOS00-05-01.RPT.doc Page 1 of 1 $73,230,455 $73,233,691 $73,259,344 $73,304,368 0.14 0.20 $102,523 0% 91% ''AAA.'' 0% Yes Portfolio Index 0.19 0.18 0.52 0.49 1.42 1.34 0.99 0.95 MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 31 January 2005) Long-Term Operating Monies (203) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO • Mellon Historical Cost: • PIMCO • Mellon 15.1.2 MODIFIED DURATION Of Portfolio: Of Index: 15.1.3 1 % INTEREST RATE CHANGE Dollar Tmnact ( 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 OUALITY A verae: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: • The Long-Term portfolio outperformed the benchmark by 5 basis points for the month, and outperformed the benchmark by 10 basis points fiscal year-to-date. • Portfolio duration, below the index, was positive for monthly performance as interest rates increased for short/intermediate maturity issues. • Yield curve positioning similar to that of the index was neutral for performance. • An underweight exposure to corporates was negative for performance, as corporates slightly outperformed Treasuries on a duration-adjusted basis. • Exposure to mortgage-backed securities was positive for relative performance as the sector outperformed Treasuries on a duration-adjusted basis. Page 1 of2 $368,021,073 $368,076,246 $367,062,892 $369,193,547 1.98 2.40 $7,286,817 0% 10% AAA 0% No* Portfolio Index 0.01 -0.04 -0.12 -0.35 1.89 1.34 1.90 1.80 • Substituting Treasury Inflation Protected Securities for nominal Treasuries was negative for performance as short and intermediate TCPS lagged their nominal counterparts during the month. *Compliance Issues: MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 31 January 2005) Page 2of2 $1,600,000 par of United Airlines (UAL) Pass-Th.rough 2001-1-C (Enhanced Equipment Trust Certificate (EETC) -909317BC2), 6.831 % coupon, 3/0 l/201 0 ma turity, representing 0.43% of the portfolio holdings on a par basis was purchased on 8/10/200 I; and subsequently downgraded by Moody's from A3 to BAJ (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 BAJ (on 12/2 1/2001) 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 (BJ Moody's, B+ by S&P). On November 29, 2002, S&P further downgraded this issue to B, and shortly thereafter on December 9, 2002, downgraded the issue one notch further to B-. On August 7, 2003, S&P downgraded the .issue to CCC+, while Moody's followed suit on August 28, 2003 with a downgrade to CA. Both rating agencies have since withdrawn their ratings (Moody s withdrew in February 2004 and S & P withdrew in June 2004). 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. United Airlines is returning to the bargaining table with its mechanics after a bankruptcy court judge agreed to impose short-term pay cuts on the union while the two sides resume talks. On Monday January 31, a bankruptcy judge granted United's request to temporarily cut mechanics' pay by 10%. Members of the mechanics' union recently rejected a long-term deal agreed on by negotiators that would have reduced benefits and cut pay 5%. United said the cuts, which took effect on February I and will last through May, will save the company $21 million. Also on January 31, United's pilots and flight attendants' unions ratified five-year agreements that cut pay and wages, moving the company closer to its goal saving an additional $725 million in annual costs in an effort to exit Chapter 11 bankruptcy. Approval of those contracts leaves United without fresh concessions from two of its biggest employee groups: mechanics and the union representing baggage handlers, ramp workers and public-contact workers, which has until April 11 to negotiate a new pact. While the givebacks from pilots and flight attendants are critical for United, analysts say the carrier still has not settled its most pressing problem -the threat by mechanics to strike if no long-term agreement is reached. PIMCO continues to negotiate with United on our holdings and currently leads an ad hoc committee. This has been an extremely complicated effort due to the complex nature ofUnited's bankruptcy. These negotiations have required PIMCO's analysts access to non-public infonnation 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. 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. • $1,000,000 par of Ford Motor Credit securities (cusip 345397GV9 maturing 5/15/05), representing 0.27% of the portfolio holdings on a par basis (exposure was reduced in July 2004 as $2.5 million par matured). The securities 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. • $1,750,000 par of Virginia Electric Power NT securities (cusip 927804EN0), maturing on March 31, 2006, represents 0.48% of the portfolio holdings on a par basis. The security was downgraded on 10/21/2002 by S&P from A-to BBB+, but continues to carry a Moody's rating of A3. H:\dept\jin\220\geggie\F AHR\L-T0B00-05-01.R.PT.doc @ Asset Summary Report ID: GL8251 Base Currency: USD Mellon by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LIQUID OPER-PIMCO -OCSF07511102 1/31/2005 Status: FINAL Net Unrealized Cost Market Value %of Gain/Loss Description Shares Par Base Base Total Base CASH & CASH EQUIVALENTS U.S. DOLLAR PENDING TRADES -300,000.00 -300,000.00 -0.41% 0.00 INTEREST 226,660.33 226,660.33 0.31% 0.00 CERTIFICATES OF DEPOSIT -DOMESTIC 4,600,000.000 4,600,000.00 4,600,000.00 6.28% 0.00 FED HM LOAN BNK -LESS THAN 1 YR 13,600,000.000 13,522,576.34 13,522,576.34 18.46% 0.00 FEDERAL HOME LOAN MORTGAGE -LESS THAN 1 YR 14,500,000.000 14,409,534.17 14,409,534.17 19.68% 0.00 FNMA ISSUES -LESS THAN 1 YR 10,700,000.000 10,630,444.17 10,630,444.17 14.52% 0.00 MUTUAL FUNDS 126,209.380 126,209.38 126,209.38 0.17% 0.00 REPURCHASE AGREEMENTS 12,000,000.000 12,000,000.00 12,000,000.00 16.39% 0.00 TREASURY BILLS -LESS THAN 1 YR 9,000,000.000 8,906,337.09 8,906,337.09 12.16% 0.00 U.S. DOLLAR 64,526,209.380 64,121,761.48 64,121,761.48 87.56% 0.00 CASH & CASH EQUIVALENTS 64,526,209.380 64,121,761.48 64,121,761.48 87.56% 0.00 FIXED INCOME SECURITIES U.S. DOLLAR BANKING & FINANCE 5,800,000.000 5,921,546.50 5,841 ,464.50 7.98% -80,082.00 U.S. GOVERNMENTS 3,300,000.000 3,261,060.00 3,270,465.00 4.47% 9,405.00 U.S. DOLLAR 9,100,000.000 9,182,606.50 9,111,929.50 12.44% -70,677.00 FIXED INCOME SECURITIES 9,100,000.000 9,182,606.50 9,111,929.50 12.44% -70,677.00 TOTAL ASSETS -BASE: 73,626,209.380 73,304,367.98 73,233,690.98 100.00% -70,677.00 2/7/2005 6:54:32PM PST 1 Workbench @ Asset Summary Report ID: GL825 l Base Currency: USD Mellon by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LONG TERM OPER-PIMCO -OCSF07522202 l/31 /2005 Status: FINAL Net Unrealized Cost Market Value % or Gain/Loss Description Shares Par Base Base Total Base CASH & CASH EQUIVALENTS U.S. DOLLAR PENDING TRADES -43,789,416.45 -43,789,416.45 -11.90% 0.00 INTEREST 2,914,401.13 2,914,401.13 0.79% 0.00 CERTIFICATES OF DEPOSIT-DOMESTIC 10,000,000.000 9,995,500.00 9,995,500.00 2.72% 0.00 COMMERCIAL PAPER -DISCOUNT 500,000.000 496,600.00 496,600.00 0.13% 0.00 FED HM LOAN BNK -LESS THAN 1 YR 800,000.000 791,515.33 791,515.33 0.22% 0.00 FNMA ISSUES -LESS THAN 1 YR 1,100,000.000 1,093,086.75 1,093,086.75 0.30% 0.00 MUTUAL FUNDS 2,734,974.650 2,734,974.65 2,734,974.65 0.74% 0.00 TREASURY BILLS -LESS THAN 1 YR 16,000,000.000 15,794,904.44 15,794,904.44 4.29% 0.00 U.S. DOLLAR 31,134,974.650 -9,968,434.15 -9,968,434.15 -2.71% 0.00 CASH & CASH EQUIVALENTS 31,134,974.650 -9,968,434.15 -9,968,434.15 -2.71% 0.00 FIXED INCOME SECURITIES U.S. DOLLAR ABS-AIRPLANE RECEIVABLES 1,600,000.000 1,600,000.00 130,384.00 0.04% -1,469,616.00 ABS -HOME EQUITY 599,570.760 599,570.76 599,851.96 0.16% 281.20 BANKING & FINANCE 19,500,000.000 19,431,817.50 19,502,926.00 5.30% 71,108.50 COLLATERALIZED MORTGAGE OBLIGATION COMM/< 1,920,261.520 1,920,261.52 2,039,893.81 0.55% 119,632.29 FHLMC MULTICLASS 802,759.190 803,614.39 802,727.08 0.22% -887.31 FHLMC POOLS 55,981.570 54,617.01 57,277.66 0.02% 2,660.65 FNMA POOLS 51,739,310.490 52,544,068.68 52,629,869.56 14.30% 85,800.88 FNMAREMIC 106,726.560 108,861.09 106,533.18 0.03% -2,327.91 GNMA MULTI FAMILY POOLS 3,442,416.240 3,430,896.87 3,482,210.63 0.95% 51,313.76 GNMA SINGLE FAMILY POOLS 562,477.950 589,734.81 595,012.42 0.16% 5,277.61 INFLATION INDEXED SECURITIES 35,563,930.000 35,580,830.41 38,319,238.23 10.41% 2,738,407.82 INSURANCE 1,600,000.000 1,594,032.00 1,618,992.00 0.44% 24,960.00 PVT PLACEMENTS -MORE THN 1 YR 752,000.000 826,199.84 826,199.84 0.22% 0.00 U.S. AGENCIES 43,870,035.310 44,830,858.80 44,375,552.76 12.06% -455,306.04 U.S. GOVERNMENTS 211,085,923.500 213,502,777.19 211,163,455.80 57.37% -2,339,321.39 UTILITY -ELECTRIC 1,750,000.000 1,743,840.00 1,794,555.00 0.49% 50,715.00 U.S. DOLLAR 374,951,393.090 379,161,980.87 378,044,679.93 102.71% -1,117,300.94 2/7/2005 6:57:04PM PST 1 Workbench @ Mellon LONG TERM OPER-PIMCO -OCSF07522202 Description FIXED INCOME SECURITIES TOTAL ASSETS -BASE: 2/7/2005 6:57:04PM PST Asset Summary by Asset Type with Sectors 1/31/2005 Cost Shares Par Base 374,951,393.090 379,161,980.87 406,086,367.740 369,193,546.72 2 Report ID: GL8251 Base Currency: USD Alternate Base Currency: Exchange Rate: Status: FINAL Net Unrealized Market Value %of Gain/Loss Base Total Base 378,044,679.93 102.71% -1,117,300.94 368,076,245.78 100.00% -1,117,300.94 Workbench ~~ vn.a.,u.r. YTK AT CORRERT MOODY HARDT TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARltET VALUE I TOTAL ----------·-------------------------------------------------------------------------------- CASH, CASH EQUIVALER'rS 1,,00,000.00 BANJt OF AMERICAN NA INSTL C/D ,000 2.260 100.000 1,,00,000.00 2 .49 06050GGS3 2.2601 03/09/2005 DD 11/16/04 1,,00,000.00 2.19 1,,00,000.00 Fl!DERAL ROME LN Blt CONS DISC .ooo .ooo P-1 99,599 1,593,586,67 2.49 3133958J4 MAT 02/02/2005 A-1+ 1,593,586.67 2.17 ,,000,000.00 Fl!DERAL HOME LN Blt CONS DISC .ooo .ooo P-1 99,434 5,'66,026,&7 9.29 313395CA2 MAT 02/18/2005 A-1+ 5,966,026.67 8.14 3,000,000.00 Fl!DERAL ROME LR Blt CONS DISC .ooo .ooo P-1 99,414 2,982,406,67 4.64 313395CV6 MAT 03/09/2005 A-1+ 2,982,406.67 4.07 3,000,000.00 FEDERAL ROME LR Blt CONS SYSTEM ,000 .ooo P-1 99,352 2,980,556.33 4.64 313395Eff2 MAT 04/27/2005 A-1+ 2,980,556.33 4.07 ,,000,000.00 Fl'!DERAL ROME LR N'l'G CORP DISC .ooo .ooo P-1 !19,457 5,967,391.67 9.29 313397BQ3 MAT 02/08/2005 A-1+ 5,967,391.67 8.14 6,000,000.00 Pl!IDERAL HOME LN MTG CORP DISC .ooo .ooo P-1 99.402 5,964,142.50 9.29 313397DB4 MAT 03/15/2005 A-1+ 5,964,142.50 8.14 2,500,000.00 FEDERAL ROME LN M'l"G CORP DISC .ooo .ooo P-1 99,120 2,478,000.00 3.86 313397DY4 MAT 04/05/2005 A-1+ 2,n8,ooo.oo 3.38 ~H·o, ooo. oo FEDERAL NATL MTG ASSN DISC !ITS .ooo .ooo P-1 !19.350 10,630,444,17 16.55 313599EW9 MAT 004/27/2005 A-1+ 10,630,444,17 14 .50 1,400,000.00 HSBC BANJt USA INSTL C/D .ooo 2,335 100.000 1,400,000.00 2.19 40429AGZ4 2,3351 03/23/2005 DD 11/23/04 1,400,000.00 1.91 ,,000,000.00 US TREASURY BILL .ooo .ooo P-1 98.959 8,906,337.09 13,87 912795SL6 DUE 04/28/2005 DD 10/28/04 A-1+ 8,906,337.09 12,15 300,000.00 WELLS FARGO BANJt RA INSTL C/D .000 2.520 100.000 300,000,00 ,46 9497Pl5ltl 2,5201 02/17/2005 DD 02/01/05 300,000.00 .41 1,300,000.00 WELLS FARGO IIAN1t NA INSTL C/D .ooo 2,420 100.000 1,300,000.00 2.02 9497P17H5 2,4201 02/15/2005 DD 01/25/05 1,300,000,00 1.77 .oo LERMM CAT 1 REPO REPO .ooo .ooo ,000 .oo .oo 99430X414 02.2901 01/31/2005 DD 01/28/05 .oo .oo rn.n. Vn.LtU.C. YTN AT CURRENT MOODY HARDT TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTIOR BOOK YIELD S-P PRICE MARJtBT VALUE I TOTAL •-·---------------------------------------------------------------·-------- 12,000,000.00 L!BMAII CAT 2 REPO .000 2,460 100.000 12,000,000.00 18.69 99430Y594 02.4601 02/01/2005 DD 01/31/05 12,000,000.00 16.37 126,209.38 DREYFUS TREASURY CASH MGN't .ooo 2.112 AAA 100.000 126,209.38 .19 996085247 AAA 126,209.38 .17 ------------·-·--------------------------TOTAL CASH 'CASH EQUIVALENTS .ooo .293 H,195,101,15 100.00 ,,,1,s,101.1s 87.57 FIXED INCOME SECURITIES j,000,000.00 ASSOCIATES CORP RORTB AMER SR .ooo 6,542 AAl 101,265 3,112,350.00 33.34 046003FF1 6.6251 06/15/2005 DD 06/09/95 AA-3,037,950.00 4 .14 150,000.00 BANlCMD!RICA CORP MTN SR 001S0 ,000 7,044 AA:Z 101.156 153,652.50 1.66 06605LGFO 7.1251 05/12/2005 DD 05/12/95 AA-151,734.00 .21 ... ~,n: GBBERAL EI.BC CAP MTR fTR 00526 .ooo 2.615 AAA 100.000 2,502,460.00 27.43 . , 00,000. 00 36962GXX7 VAR R'l' 03/15/2005 DD 03/20/02 AAA 2,500,000.00 3.41 1so,ooo.oo RORWEST FINL IRC NT .ooo 7.511 AAl 101.187 153,084.00 1.66 669383DX6 7.6001 05/03/2005 DD 05/03/00 AA-151,780,50 .21 3,300,000.00 US 'l'REASURY BILL .ooo .ooo AAA 99,105 3,261,060.00 3S.89 912795SS1 0.0001 06/09/2005 DD 12/09/04 AAA 3,270,465.00 4.46 -----------------·-·-----·----------------- TOTAL FIXED IRCON! SECURITIES .ooo 4,672 9,182,606.50 100.00 9,111,929.50 12.43 ------·---------------------------- TOTAL .ooo .502 73,377,707,65 100.00 73,307,030.65 100.00 ==========~ PAR VALUE YTM AT CIJRRBIIT MOODY HARDT TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE IIARDT VALUE I TOTAL ----------------------------·------------------------------------------------------ CASH & CASH EQUIVALENTS eoo,000.00 FEDERAL BOMB LR BK CONS DISC .ooo .ooo P-1 98.939 791,515.33 2.56 313397GV7 MAT 06/13/2005 A-1+ 791,515.33 .19 1,100,000.00 FEDERAL NATL MTG ASSN DISCOIJIIT .ooo .ooo P-1 99.372 1,093,086.75 3.53 313589DZ3 MAT 04/06/2005 A-1+ 1,093,086.75 .21 500,ooo.oo GERERAL ELEC CAP DISC .ooo 2.054 P-1 99.320 496,600.00 1.60 36959BP43 02/04/2005 496,600.00 .12 l,.,~,~0 I 000 • 00 UBS AG STAMFORD BRR IRSTL C/D .ooo 2.471 99.955 9,995,500.00 32.34 • • · 90261GE47 VAR RT 07/05/2005 DD 07/02/04 9,995,500.00 2.44 1&,000,000.00 US TREASURY BILL .ooo .ooo P-1 98.718 15,794,904,44 51.10 912795VB1 DUE 07/21/2005 DD 01/20/2005 A-1+ 15,794,904.44 3.86 2,734,974.65 DREYFUS TREASURY CASH MGMT .ooo 2.112 AAA 100.000 2,734,974.65 8.84 996085247 AAA 2,734,974.65 .67 ---------------------------------------------TOTAL CASH & CASH EQUIVALENTS .ooo 1.097 30,906,581.17 100.00 30,906,581.17 7.55 FIXED INCOME SECURITIES 752,000.00 AIG SUIIAMBRICA GLOBAL REGS .ooo 5.325 109.867 826,199.84 .21 U00907AAO 5.8501 08/01/2008 DD 08/08/01 826,199.84 .20 22,000,000.00 COMMIT TO PUR FNMA SP MTG ,000 4.923 AAA 101.560 22,299,062.50 5.91 01F050429 5.0001 02/01/2020 DD 02/01/05 AAA 22,lU,200.00 5.46 t,000,000.00 COMMIT TO PUR FNMA SP MTG .ooo 5,402 AAA 101.810 4,047,773.43 1.07 01F052623 5.5001 02/01/2035 DD 02/01/05 AAA 4,072,400.00 1.00 1,soo,000.00 CIT GROUP INC NEW SR RT .ooo 2.909 A2 100.437 1,so1,oos.oo .39 125581AFS VAR RT 09/22/2006 DD 09/23/03 A 1,506,555.00 .37 10,000,000.00 FEDERAL BOMB LR MTG CORP ll'l'H .ooo 4.029 AAA 99.285 9,993,100.00 2.62 3128X3WYS 4.0001 09/22/2009 DD 09/22/04 AAA 9,928,527.00 2.43 3,500,000.00 PZDERAL BOMB LR BK CONS BDS .ooo 1.112 AAA 100.176 3,732,225.00 .92 •••'!l!j~~133MAUH7 7,1251 02/15/2005 DD 02/08/00 AAA 3,506,161.05 .86 PAR VALUE YTM AT CURRENT MOODY HARDT TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE IIARUT VALUE I TOTAL ·--------·---------·----------------------------------------------------- 55,981.57 PIILMC GROUP 178-6064 .ooo 4.196 AAA 102.315 54,617,01 .01 31348SWZ3 6.3841 01/01/2028 DD 12/01/97 AAA 57,277.66 .01 11,350,000,00 ftDERAL NATL MTG ASSR DBBS .ooo 5,117 AAA 102,602 11,521,271,50 3.08 ""'"~359NJX2 5.2501 06/15/2006 DD 06/22/01 AAA 11,645,274.79 2.85 644,381.88 PIIMA POOL 10254510 ,000 4,907 AAA 101,895 663,713.33 .17 31371KV84 S.OOOI 11/01/2017 DD 10/01/02 AAA 656,589.89 .16 138,843.81 PIIMA POOL f0254631 ,000 4,907 AAA 101.895 1431 009,13 .03 31l71JtY47 5.0001 02/01/2018 DD 01/01/03 AAA lU,474,25 .03 123,921.50 PlfNA POOL 10254760 .ooo 4,909 AAA 101.863 127,639, 13 ,03 31371JtSV9 5.0001 06/01/2018 DD 05/01/03 AAA 126,230.50 ,03 56,155,50 PIIMA POOL f0254866 ,000 4,909 AAA 101,863 57,840,17 ,01 31371LCB3 5.000I 09/01/2018 DD 08/01/03 AAA 57,201,83 .01 299,095.99 fllMA POOL 10254953 .ooo 4,913 AAA 101,770 302,928.17 ,08 31371LB21 5.000I 11/01/2018 DD 10/01/03 AAA 304,388.58 ,07 806,533,78 PlfNA POOL 10254987 .ooo 4,'15 AAA 101,730 IH,867,49 ,21 31371LF46 5.0001 12/01/2018 DD 11/01/03 AAA 820,483.78 ,20 uo,101.21 fllMA POOL 10323980 .ooo 5,725 AAA 104.809 146,274.48 .03 31374T2MO ,.0001 04/01/2014 DD 09/01/99 AAA 146,838.17 .04 23,428.15 PRNA POOL 10357328 .ooo 4,911 AAA 101,804 24,131.00 .oo 31376J4M8 5,000I 01/01/2018 DD 01/01/03 AAA 23,850,77 .01 1,236,443, 50 fllHA POOL 10357430 .ooo 4,909 AAA 101,863 1,250,353.49 .33 .. 31376JtA71 S.OOOI 09/01/2018 DD 09/01/0l AAA 1,259,481,90 .31 37,789.37 fllHA POOL 10456482 .ooo 5,725 AAA 104,809 39,454.45 .01 31381CCT2 6,0001 02/01/2014 DD 02/01/99 AAA 39,606.51 .01 1"'8,803.88 FIHA POOL 10509649 .ooo 5,725 AAA 104,809 103,157,42 .02 ;I! . -13830£110 6.000I 09/01/2014 DD 09/01/99 AAA 103,554.95 ,03 109,373,60 f'IIHA POOL 10535451 .ooo 5.725 AAA 104,809 114,192,87 .03 31384VZQ8 6.0001 06/01/2015 DD 07/01/00 AAA 114,632.93 .03 296,700,02 FIHA POOL 10555363 .ooo 4,907 AAA 101,895 305,601.01 .01 313BSWSY1 5,0001 04/01/2018 DD 03/01/03 AAA 302,321.09 .07 l:'AK VALUE YTN AT CIJRRERT MOODY IIARDT TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKBT VALUE I TOTAL -"41,~----------·--------------·-----------------------l'I •• ---------- 30,909.22 PIIMA POOL 10555453 .ooo 4.907 All 101.895 31,305.25 .oo 31385XB'N6 5.0001 05/01/2018 DD 04/01/03 All 31,494.80 .01 246,561.32 PIIMA POOL 10555545 .ooo 4.907 All 101.895 253,958.17 .06 31385XES2 5.000I 06/01/2018 DD 05/01/03 All 251,232.50 .06 852,283.80 PIIMA POOL 10555621 .ooo 4.915 AAA 101.730 861,871,99 .22 31385XG68 5.0001 07/01/2018 DD 06/01/03 AAA 867,025,11 .21 461,042.76 ftlMA POOL 10681309 .ooo 4.907 AAA 101.895 474,874.04 ,12 31391Y3S4 5.000I 02/01/2018 DD 02/01/03 AAA 469,777.35 .u 55,799,58 PNMA POOL 10681334 .ooo 4,907 AAA 101.895 57,473.57 .01 31391Y4Tl 5.0001 02/01/2018 DD 01/01/03 AAA 56,856.72 ,01 •· 106, 726,56 PNMA GTD RBNIC P/T 02-76 PD .ooo 5.009 AAA 99,819 108,861,09 .02 31392FKP3 5,0001 08/25/2022 DD 10/01/02 AAA 106,533.18 .03 304,766.68 PIINA POOL 1068008 .ooo 4,907 AAA 101.895 308,671.52 .08 31400D3Rl 5,0001 06/01/2018 DD 05/01/03 AAA 310,540.58 .08 164,752.13 PIIMA POOL 10685200 .ooo 4,907 AAA 101,895 166,863.04 .04 31400EGR7 5.0001 03/01/2018 DD 03/01/03 All 167,873.41 .04 28,291.80 PIIMA POOL 10685665 .ooo 4,907 AAA 101.895 2',140.55 .oo 31400EW22 5.0001 02/01/2018 DD 02/01/03 AAA 28,827.80 .01 250,020.02 PIINA POOL 10686318 .ooo 4.907 AAA 101.895 257,520.62 .06 31400FPB7 5.0001 03/01/2018 DD 03/01/03 AAA 254,756.72 ,06 ~~:9, 832. 45 l'IINA POOL 10688739 .ooo 4.909 AAA 101,863 101,797.42 .02 31400JBL9 5.0001 06/01/2018 DD 06/01/03 All 100,673.98 .02 83,016.46 PIIMA POOL 10689859 .ooo 4.909 AAA 101.863 84,080.11 .02 31400KMG8 5.000I 05/01/2018 DD 05/01/03 AAA 84,563.29 .02 547,308,06 "'"" POOL 10693834 .ooo •• ,01 AAA 101,895 563,727.29 ,14 31400PY74 5.000I 03/01/2018 DD 03/01/03 AAA 557,676.98 .14 194,015.62 ftlMA POOL 10695852 .ooo 4,907 All 101.895 199,836.09 .os 31400SBVO 5,000I 05/01/2018 DD 05/01/03 AAA 197,691.30 .os 657,770.13 PlfMA POOL 10695889 .ooo 4,907 AAA 101.895 677,503.25 .17 31400SC23 5.0001 05/01/2018 DD 05/01/03 AAA 670,231.78 ,16 rftl\. v~uz Y'l'M AT CUIUIBBT MOODY MARDT TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTIOR BOOK YIELD s-P PRICE HARDT VALUE I TOTAL ----------------------------------------------------------- 20,091.16 PIIMA POOL 10697026 .ooo 4.907 AAA 101.895 20,693.91 .oo 31400TLF2 5.0001 05/01/2018 DD 04/01/03 AAA 20,471.79 .01 203,918.15 PIIMA POOL 10702210 .ooo 4.915 AAA 101.730 210,035.69 .05 31401ADP9 5.000I OS/01/2018 DD 05/01/03 AAA 2071 445.17 .os 120,061.36 PWMA POOL 10702328 .ooo 4.907 AAA 101.895 121,599.64 .03 31401ABD2 5.0001 05/01/2018 DD 04/01/03 AAA 122,335.96 .03 2so,21,.ea P'IIHA POOL 10709148 .ooo 4.909 AAA 101.863 257,726.48 .06 31401HZN7 5.000I 06/01/2018 DD 06/01/03 All 254,882,18 .06 562,967.19 P'RNA POOL 10709360 .000 4.909 All 101,863 570,180.21 .15 31401JBS6 5.0001 07/01/2018 DD 06/01/03 AAA 573,456.85 .14 97,997.02 PIIMA POOL 10709826 .ooo 41,909 AAA 101.863 H,252,60 .02 .. 31401JSP4 5.0001 06/01/2018 DD 06/01/03 All H,822,98 .02 203,006,34 PIIMA POOL 10709917 .ooo 4.907 AAA 101,895 205,607.35 .05 31401JVJ4 s.0001 06/01/2018 DD 06/01/03 AAA 206,852.36 .os ri:7,894.91 PBNA POOL 10709963 .000 41,915 AAA 101. 730 18,124.20 .oo ••.lftl ·uo1JWY0 5,0001 06/01/2018 DD 06/01/03 AAA 18,204.42 .oo 534,530,10 PIIMA POOL 10710235 .ooo 4,909 AAA 101.863 550,566.02 ,14 31401KBC8 S.0001 06/01/2018 DD 06/01/03 AAA 544,489,89 .13 14,934.77 PllNA POOL 10713344 .ooo 4,909 AAA 101.863 15,382.80 .oo 31401NP52 5.0001 06/01/2018 DD 06/01/03 All 15,213.05 .oo 235,568.65 FIOIA POOL 10713365 .ooo 4.909 AAA 101.863 238,586.87 .06 31401RQS1 5.0001 07/01/2018 DD 07/01/03 AAA 239,957.95 .06 658,543.39 PIINA POOL 10720319 .ooo 4,909 AAA 101,863 66',980.98 .17 31401WG45 5.0001 07/01/2018 DD 07/01/03 AAA 670,813.90 .16 1,964,1'8.25 PIIMA POOL 10720369 .ooo 4,915 AAA 101,730 2,023,124.20 .52 3140UfJNO 5.0001 06/01/2018 DD 06/01/03 AAA 1,998,171.49 .49 275,482,83 FIIMA POOL 10721629 .ooo 4,909 AAA 101,863 283,747,33 ,01 31401XVW4 5,0001 07/01/2018 DD 06/01/03 AAA 280,'15,85 ,07 229,403,05 PIQIA POOL 10723487 .ooo 4,90, AAA 101,863 231,983.84 .06 31402AXQ4 5.0001 06/01/2018 DD 06/01/03 AAA 233,677.47 .06 PAK VALUE YTN AT CURUIIT MOODY MARDT TOTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIBLD S-P PRIC:11 IWIDT VALUI! I TOTAL ------------------------------------------------------------------------ 366,911.80 PRMA POOL 10729601 .ooo 4.909 AAA 101.863 371,612.86 .09 31402HRW3 5.000I 07/01/2018 DD 07/01/03 AAA 373,748.39 .09 32,803.16 PIIMA POOL 10732873 .ooo 4,909 AAA 101.879 33,223.43 .oo 31402MF1f5 5,000I 11/01/2018 DD 10/01/03 AAA 33,419.50 .01 583,308.36 PRMA POOL 10737130 ,000 4.909 AAA 101.863 590,782.00 ,15 31402S4P9 5,0001 10/01/2018 DD 10/01/03 AAA SH,177,03 -15 •. 486,450.04 .PIIHA POOL 10738211 ,000 4,915 AAA 101,730 02,682. 70 ,13 31402UDQ2 5.000I 10/01/2018 DD 10/01/03 AAA 494,863.80 .12 172, 729,26 PIINA POOL 10738487 .ooo 4.913 AAA 101. 770 174,942,35 ,04 31402URC2 5,0001 10/01/2018 DD 10/01/03 AAA 175,785.76 .04 1112•, 242, 11 PIIMA POOL 10740471 ,000 4,915 AAA 101,730 670,727.07 ,17 'll402WT40 5,000I 10/01/2018 DD 10/01/03 AAA 673,696,41 .16 711,814.30 PlfMA POOL 10740748 .ooo 4,909 AAA 101,863 720,934.41 ,19 31402W5R7 5,000I 10/01/2018 DD 11/01/03 AAA 725,077.39 ,18 34,786, 54 PIIMA POOL 10743868 ,000 4.915 AAA 101.730 35,232.24 .oo 31403BMR1 5,000I 11/01/2018 DD 10/01/03 AAA 35,388.22 .01 916,730.04 PIIMA POOL 10744008 .ooo 4,909 AAA 101.863 928,475.65 ,24 31403BR54 5,000I 07/01/2018 DD 09/01/03 AAA 933,811,29 ,23 145,432.20 PIIMA POOL 10744316 ,000 4,915 AAA 101,730 147,295.55 .03 3140383Z4 5,0001 09/01/2018 DD 09/01/03 AAA 147,947.63 ,04 304,040,91 PIIMA POOL 10747914 .ooo 4,913 AAA 101,770 307,936,44 .08 31403F3XO 5,0001 11/01/2018 DD 11/01/03 AAA 309,421.01 ,OB 181,987.22 PIIMA POOL 10748400 .ooo 4,915 AAA 101,730 184,318,93 .04 31403GHR9 5,000I 08/01/2018 DD 09/01/03 AAA 185,134.91 ,OS 891,635.41 PIIMA POOL 10748899 .ooo 4,915 AAA 101,730 903,059,49 .23 ll403G7LO 5.000I 12/01/2018 DD 11/01/03 AAA 907,057.35 .22 1,983,918,38 FIIMA POOL 10750377 ,000 4,915 AAA 101,730 2,009,337.33 ,53 31403JUA2 S,OOOI 11/01/2018 DD 11/01/03 AAA 2,018,232.71 ,49 1,714,055.58 FIIMA POOL 10750380 .ooo 4,915 AAA 101,730 1,736,016.94 ,46 31403JUD6 5,000I 11/01/2018 DD 11/01/03 AAA 1,743,702.30 ,43 r.nn. VI\.IJU~ YTN AT CURR.ER'? M00D1' IIARDT ~ COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YULD 8-P PRICE HARDT VALUE I TOTAL ------------------------------------------------------------------------------- lfi5,338.U PIIMA POOL 10750445 .ooo 4.915 AAA 101.730 167,456.59 .04 31403JWE2 5.000I ll/01/2018 DD ll/01/03 AAA 168,197.92 .04 752,180.91 PIIMA POOL 10751960 ,000 4,915 AAA 101.730 761,818.24 .20 31403LMR1 5.0001 12/01/2018 DD 11/01/03 AAA 765,190.81 .19 789,680.26 PIIMA POOL 10753425 .ooo 4.913 AAA 101,770 798,810.93 .21 ~,~1403NA23 5.000I ll/01/2018 DD ll/01/03 AAA 803,653.89 .20 574,320.13 PIIHA POOL 107S5165 .ooo 4.913 AAA 101.770 581,678.61 ,15 31403Q6A3 5,000I 12/01/2018 DD ll/01/03 AAA 584,482.90 , 14 893,186.36 "'"" POOL 10756372 ,000 4,913 AAA 101.770 903,513.82 ,24 31403SJR8 5.0001 11/01/2018 DD 11/01/03 AAA 908,991.56 .22 9,186,02 GRMA POOL 10421389 ,000 6,139 AAA 105,875 9,641.02 .oo 36206UC23 6.5001 04/15/2026 DD 04/01/96 AAA 9,725.70 .oo 15,422.32 GIDIA POOL 1040851 .ooo 6.175 AAA 105,263 16,186.21 .oo 36208FifLO 6,5001 01/15/2028 DD 01/01/98 AAA 16,233.92 .oo 32,665.74 GIDIA POOL 10'66845 .ooo 6.143 AAA 105,813 34,283.72 .oo 362098TA6 6.5001 06/15/2028 DD 06/01/98 AAA 34,564.44 .01 U0,664,97 GIDIA POOL 10'68052 ,000 6,143 AAA 105,813 116,146.34 .03 36209C5M4 6,5001 07/15/2028 DD 07/01/98 AAA ll7,097.37 ,03 137,019.21 GJIMA POOL 10476041 .ooo 6,143 AAA 105,813 143,591.86 .03 36209NZE7 6.5001 06/15/2028 DD 06/01/98 AAA 144,983.45 .04 120,442,53 GJIMA POOL 10478626 .ooo ,.us AAA 105,781 12,,220.01 ,03 36209QVT9 6.SOOI 01/15/2029 DD 01/01/99 AAA 127,405.61 .03 28,735.37 G10IA POOL 10480598 .ooo 6,145 AAA 105,781 30,113.76 .oo .. 36209S3P6 6.5001 10/15/2028 DD 10/01/98 AAA 30,396.63 .01 8 1379,43 GIDIA POOL 10512235 ,000 6,145 All 105.781 8,794,47 .oo 362llGBC6 6.5001 11/15/2029 DD 11/01/99 llA 8,863,87 .oo ~,~~,962.36 GIDIA POOL 10514326 ,000 6.145 All 105.781 104,757.42 .02 . '62UJLF2 6,5001 07/15/2029 DD 07/01/99 AAA 105,741,43 .03 173,529.16 GBMA II POOL 10080395 .ooo 3,328 AAA 101.UO 171,956.55 .04 36225CNN4 VAR RT 04/20/2030 DD 04/01/00 AAA 175,975.49 .04 PAR VALUE YTN AT CURRmlT MOODY HARDT roTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD 8-P PRICB IIARDT VALUB I TOTAL -----------------------------------------------------------------------------------------~-:s., 138. 76 GIIMA II POOL l080408X .ooo 3,328 AM 101,409 1,559,141.25 ,42 '' l " 36225CH28 VAR RT 05/20/2030 DD 05/01/00 AM 1,597,330.10 ,39 1,340,481.81 GRMA II POOL 10080965 .ooo 3,474 AAA 100,749 1,339,644,00 ,35 36225DCBB VAR RT 07/20/2034 DD 07/01/04 All 1,350,528,05 ,33 6,000,000.00 GENEIIAL ELBC CAP NTH ITR 00526 .ooo 2.615 AAA 100.000 6,002,544.00 1.58 36962GXX7 VAR RT 03/15/2005 DD 03/20/02 AAA 6,000,000.00 1.47 3,500,000.00 GOLDDH SACHS GRP MTN l'l'R.00194 .ooo 2.864 AA3 100,203 3,507,850.50 ,92 381UBJB6 VAR RT 10/27/2006 DD 10/29/03 A+ 3,507,105.00 ,86 800,000.00 QOLDIIAH SACHS GRP ll'l'N f'l'R.00207 .ooo 3.012 AA3 100.343 100,000.00 .21 381UBJQ3 VAR RT 07/23/2009 DD 07/23/04 A+ 802,744,00 .20 3,500,000.00 GOLDJIAH SACHS MTR I TR 00216 .ooo 2,630 Ml 100.000 3,500,000.00 .92 38141BJZ3 VAR RT 08/01/2006 DD 02/01/05 3,500,000.00 .86 J., 200,000.00 _,RGAII STAHLEY NT .ooo 3.903 AA] 99,281 3,149,248.00 .84 61746BALO 3,8751 01/15/2009 DD 01/13/04 A+ 3,176,992.00 .78 599,570,76 RESIDERTIAL ASSET 03-RSll AIIB ,000 2.859 AM 100,047 599,570,76 ,15 7fi09851t83 VAR RT 12/25/2033 DD 12/30/03 AAA 599,851,96 .15 2,985,923.50 SBA G'l'D DEV PARTH 2001-20C 1 .ooo 5,900 AM 107.450 2,985,923.50 .84 83lfi2CLJO 6,3401 03/01/2021 All 3,208,374.80 .78 i',920,261.52 SBA G'l'D PARTR CTFS SBIC-PS 01 .ooo 6.251 AM 106.230 1,920,261.52 .53 831641DD4 6,6401 02/10/2011 DD 02/21/01 RR 2,039,893.81 .so 1,,00,000.00 UHITBD AIRLS PASSTBRU 01-1 C .ooo 83.826 WR 8.U9 1,600,000.00 .03 9093178C2 6,8311 03/01/2010 DD 08/22/01 A-130,384 .oo ,03 1'1J!~,ooo.oo US 'IRBASURY NOTES .ooo 5,905 AM 105.844 22,620,312.50 5.59 9128272JO 06.2501 02/15/2007 DD 02/15/97 AAA 21,168,800.00 5,18 3,546,720,00 US TREASURY INFLATION IRDBX HT .ooo 3.363 AM 107,781 3,855,784.48 1.01 9128273T7 3.6251 01/15/2008 DD 01/15/98 AAA 3,822,708.02 .'3 15,139,930.00 US TRl!ASURY INFLATION INDEX HT .ooo 3,494 AAA 110,906 16,7152,98',05 4,44 9128274Y5 3.8751 01/15/2009 DD 01/15/99 AM 16,791,166.47 4.11 3,900,000.00 D S !REASURY NOTES .ooo 5.625 AAA 102,219 4,288,149.14 1.05 9128276N7 05,7501 11/15/2005 DD 11/15/00 All 3,98fi,5U,OO .97 r.nn YAl.,U6 Y'l'NAT CURIU!llT MOODY IIARDT T0TAI. COST/ I TYPE SECURITY ID SECURITY DESCRIPTIOR B001t YIELD S-P PRICE MARDT VALUE I TOTAL ------·---·-------------------------·-·----------------------------------------- 11,,00,000.00 0 S 'IREASURt ROTES .ooo 3.396 AAA 99.370 17 ,tos,000.00 4.62 912829BT6 3.3751 12/15/2008 DD 12/15/03 AAA 17,489,120.00 4.28 21,500,000.00 US 'l'REASURY ROTES .ooo 2.763 AAA '9,530 27,463,468,U 7.24 912828CMO 2.7501 06/30/2006 00 06/30/04 AM 27,370,750.00 6.69 49,000,000.00 US 'l'REASURY NOTES .ooo 2,765 AAA 99,470 0,103,'27,41 12.89 912828CQ1 2.7501 07/31/2006 DO 07/31/04 AAA 48,740,300,00 11,92 55,300,000.00 US 'l'REASURY NOTES .ooo 2,404 AM 98,810 55,048,031.25 14.45 912828CU2 2.3751 09/31/2006 DO 08/31/04 AAA 54,641,930.00 13.36 20,800,000.00 US 'l."REASURY ROTES .ooo 2,893 AAA 99.380 20,717,574.59 5.46 912828D09 2.8751 11/30/2006 DD 11/30/04 AAA 20,,11,oto.oo 5.05 14,000,000.00 US 'l'ltEASURY NOTES .ooo 3.529 AAA 99.190 13,870,390.17 3.67 912828Dl!7 3.5001 12/15/2009 DD 12/15/04 AAA 13,886,600.00 3.40 1,150,000.00 VIRGIRIA EI.BC, PWR 01 SER A .ooo 5.607 Al 102.546 1,743,840.00 .47 ' 927904EIIO 5.7501 03/31/2006 DD 03/27/01 BBB+ 1,794,555.00 .44 16,877,280.00 US TUASURY IRFLATIOR IRDEX RT 3,817 3,217 AAA 104.906 14,962,056.88 4,68 9128272H3 3.3751 01/15/2007 DD 01/15/97 AAA 17,705,363,74 4,33 ,11&0, 000. 00 PBDERAL HATL MTG ASSN DEBS 5,967 7,112 AAA 100,178 16,154,410,00 4.10 ,. 1359NPB1 7.1251 02/15/2005 DD 02/14/00 AAA 15,527,548.15 3.90 802,759.19 P11LHC MULTICLASS MTG SER El A 6.316 3,731 AAA 99,996 803,614.39 .21 3133TCE95 VAR RT 08/15/2032 DD 12/01/97 AAA 802,727.08 .20 484,621.91 GINA GTD RENIC TR 2000-9 PB fi.320 2.959 AAA 100.707 484,621.91 .12 383784NX9 VAR RT 02/16/2030 AAA 488,048.19 .12 195,310.58 GtfHA II POOL 1080088N fi,705 3,329 AM 101.380 199,583.00 .os 36225CC20 7.3751 06/20/2027 DO 06/01/97 AAA 198,006.74 .05 157,955.93 GRHA II POOL 10080023 6,992 4,555 AAA 101.528 160,572.07 .04 36225CA.19 VAR RT 12/20/2026 DD 12/01/96 AM 160,370,25 .04 2,100,000.00 lZDERAL NATL H'IG ASSN DEBS 7,113 5,963 AAA 111,104 2,030,133.00 .61 31359NEY5 6,6251 09/15/2009 DD 09/01/99 AAA 2,333,189.46 .57 1,000,000.00 PORD IIOTOR CR CO NT 7,582 fi,686 Al 100,953 965,170.00 .26 3453'7GV9 6.7501 05/15/2005 DD 05/24/93 BBB-1,009,530,00 ,25 PAR VALUE Y'l'N AT CURRZRT MOODY IIARDT 'i'OTAL COST/ I TYPE SECURITY ID SECURITY DESCRIPTIOH BOOK YIELD 8-P PRICE HARDT VALUE ' TOTAL ----------·-------------------------------------------------------------------------------- 935,413.40 IINP/IIONTOOH PAIGE too0-11150 7.684 7.410 AAA 101.218 CJ15,0'J7.3') .25 302')')8GB3 7.5001 12/01/2030 DD 10/21/')') AAA 946,804.12 .23 ~,600,000.00 ALLSTATE CORP SR HT 7.967 7.783 Al 101.187 1,594,032.00 .42 020002AL5 7. 8751 05/01/2005 DD 05/01/00 A+ 1,618,992.00 .40 -------------------------------------------- TOTAL FIXED INCOME SECURITIES .138 4.399 379,161,980.87 100.00 378,044,679,93 92.47 ----------------------------------------·---.137 4,379 410,068,562,04 100.00 408,951,261.10 100.00 ========= @ Asset Detail Report ID: GL8013. Mellon Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGOOO 10000 1/31/2005 Status: FINAL Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par Base Base Total Base U.S. DOLLAR CASH & CASH EQUIVALENTS RECEIVABLE FOR INVESTMENTS 21,217.70 21,217.70 0.00% 0.00 SOLD PAYABLE FOR INVESTMENTS -44, 110,634.15 -44,110,634.15 -10.00% 0.00 PURCHASED INTEREST RECEIVABLE 3,141,061.46 3,141,061.46 0.71% 0.00 BANK OF AMERICAN NA INSTL C/D 100.0000 1,600,000.000 1,600,000.00 1,600,000.00 0.36% 0.00 2.260% 03/09/2005 DD 11/ 16/04 SEC ID: 06050GGS3 FEDERAL HOME LN BK CONS DISC 99.5992 1,600,000.000 1,593,586.67 1,593,586.67 0.36% 0.00 MAT 02/02/2005 SEC ID: 313385BJ4 FEDERAL HOME LN BK CONS DISC 99.4338 6,000,000.000 5,966,026.67 5,966,026.67 1.35% 0.00 MAT 02/18/2005 SEC ID: 313385CA2 FEDERAL HOME LN BK CONS DISC 99.4136 3,000,000.000 2,982,406.67 2,982,406.67 0.68% 0.00 MAT 03/09/2005 SEC ID: 313385CV6 FEDERAL HOME LN BK CONS 99.3519 3,000,000.000 2,980,556.33 2,980,556.33 0.68% 0.00 SYSTEM MAT 04/27/2005 SEC ID: 313385EW2 FEDERAL HOME LN MTG CORP DISC 99.4565 6,000,000.000 5,967,391.67 5,967,391.67 1.35% 0.00 MAT 02/08/2005 SEC ID: 313397BQ3 FEDERAL HOME LN MTG CORP DISC 99.4024 6,000,000.000 5,964,142.50 5,964,142.50 1.35% 0.00 MAT 03/15/2005 SEC ID: 313397DB4 FEDERAL HOME LN MTG CORP DISC 99.1200 2,500,000.000 2,478,000.00 2,478,000.00 0.56% 0.00 MAT 04/05/2005 SEC ID: 313397DY4 FEDERAL HOME LN BK CONS DISC 98.9394 800,000.000 791,515.33 791,515.33 0.18% 0.00 MAT 06/13/2005 SEC ID: 313397GV7 FEDERAL NATL MTG ASSN DISCOUNT 99.3715 1,100,000.000 1,093,086.75 1,093,086.75 0.25% 0.00 MAT 04/06/2005 SEC ID: 313589DZ3 FEDERAL NATL MTG ASSN DISC NTS 99.3499 10,700,000.000 10,630,444.17 10,630,444.17 2.41% 0.00 MAT 004/27 /2005 SEC ID: 313589EW9 2/7/2005 6:58:40PM PST 1 Workbench @ Asset Detail Report ID: GL8013 Mellon Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED-OCSGOOO 10000 1/31/2005 Status: FINAL Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par Base . Base Total Base GENERAL ELEC CAP DISC 99.3200 500,000.000 496,600.00 496,600.00 0.11% 0.00 02/04/2005 SEC ID: 36959HP43 HSBC BANK USA INSTL C/D 100.0000 1,400,000.000 1,400,000.00 1,400,000.00 0.32% 0.00 2.335% 03/23/2005 DD 11/23/04 SEC ID: 40428AGZ4 UBS AG STAMFORD BRH INSTL C/D 99.9550 10,000,000.000 9,995,500.00 9,995,500.00 2.26% 0.00 VAR RT 07/05/2005 DD 07 /02/04 SEC ID: 90261GE47 U S TREASURY BILL 98.9593 9,000,000.000 8,906,337.09 8,906,337.09 2.02% 0.00 DUE 04/28/2005 DD 10/28/04 SEC ID: 912795SL6 U S TREASURY BILL 98.7182 16,000,000.000 15,794,904.44 15,794,904.44 3.58% 0.00 DUE 07/21/2005 DD 01/20/2005 SEC ID: 912795VH1 WELLS FARGO BANK NA INSTL C/D 100.0000 300,000.000 300,000.00 300,000.00 0.07% 0.00 2.520% 02/17/2005 DD 02/01/05 SEC ID: 9497P15Kl WELLS FARGO BANK NA INSTL C/D 100.0000 1,300,000.000 1,300,000.00 1,300,000.00 0.29% 0.00 2.420% 02/15/2005 DD 01/25/05 SEC ID: 9497Pl 7M5 LEHMAN CAT 2 REPO 100.0000 12,000,000.000 12,000,000.00 12,000,000.00 2.72% 0.00 02.460% 02/01/2005 DD 01/31/05 SEC ID: 99430Y594 DREYFUS TREASURY CASH MGMT 100.0000 2,861,184.030 2,861,184.03 2,861,184.03 0.65% 0.00 SEC ID: 99608524 7 TOTAL CASH & CASH EQUIVALENTS 95,661,184.030 54,153,327.33 54,153,327.33 12.27% 0.00 FIXED INCOME SECURITIES AIG SUNAMERICA GLOBAL REG S 109.8670 752,000.000 826,199.84 826,199.84 0.19% 0.00 5.850% 08/01/2008 DD 08/08/01 SEC ID: U00907 AAO COMMIT TO PUR FNMA SF MTG 101.5600 22,000,000.000 22,299,062.50 22,343,200.00 5.06% 44,137.50 5.000% 02/01/2020 DD 02/01/05 SEC ID: 01F050429 COMMIT TO PUR FNMA SF MTG 101.8100 4,000,000.000 4,047,773.43 4,072,400.00 0.92% 24,626.57 5.500% 02/01/2035 DD 02/01/05 SEC ID: 01F052623 ALLSTATE CORP SR NT 101.1870 1,600,000.000 1,594,032.00 1,618,992.00 0.37% 24,960.00 7.875% 05/01/2005 DD 05/01/00 SEC ID: 020002AL5 2/7/2005 6:58:40PM PST 2 Workbench @ Asset Detail Report ID: GL8013" Mellon Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGOO0 10000 1/31/2005 Status: FINAL Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par Base Base Total Base ASSOCIATES CORP NORTH AMER SR 101.2650 3,000,000.000 3,112,350.00 3,037,950.00 0.69% -74,400.00 6.625% 06/15/2005 DD 06/09/95 SEC ID: 046003FF1 BANKAMERICA CORP MTN SR 00150 101.1560 150,000.000 153,652.50 151,734.00 0.03% -1,918.50 7.125% 05/12/2005 DD 05/ 12/95 SEC ID: 06605LGF0 CIT GROUP INC NEW SR NT 100.4370 1,500,000.000 1,507,005.00 1,506,555.00 0.34% -450.00 VAR RT 09/22/2006 DD 09/23/03 SEC ID: 125581AF5 WMP/HUNTOON PAIGE #000-11150 101.2177 935,413.400 915,097.39 946,804.12 0.21% 31,706.73 7.500% 12/01/2030 DD 10/21/99 SEC ID: 302998GE3 FEDERAL HOME LN MTG CORP MTN 99.2853 10,000,000.000 9,993,100.00 9,928,527.00 2.25% -64,573.00 4.000% 09/22/2009 DD 09/22/04 SEC ID: 3128X3WY5 FEDERAL HOME LN BK CONS BDS 100.1760 3,500,000.000 3,732,225.00 3,506,161.05 0.79% -226,063.95 7.125% 02/15/2005 DD 02/08/00 SEC ID: 3133MAUN7 FHLMC MULTICLASS MTG SER E3 A 99.9960 802,759.190 803,614.39 802,727.08 0.18% -887.31 VAR RT 08/15/2032 DD 12/01/97 SEC ID: 3133TCE95 FHLMC GROUP #78-6064 102.3152 55,981.570 54,617.01 57,277.66 0.01% 2,660.65 6.384% 01/01/2028 DD 12/01/97 SEC ID: 31348SWZ3 FEDERAL NATL MTG ASSN DEBS 111.1043 2,100,000.000 2,030,133.00 2,333,189.46 0.53% 303,056.46 6.625% 09/15/2009 DD 09/01/99 SEC ID: 31359MEY5 FEDERAL NATL MTG ASSN DEBS 100.1777 15,500,000.000 16,154,410.00 15,527,548.15 3.52% -626,861.85 7.125% 02/15/2005 DD 02/14/00 SEC ID: 31359MFH1 FEDERAL NATL MTG ASSN DEBS 102.6015 11,350,000.000 11,521,271.50 11,645,274.79 2.64% 124,003.29 5.250% 06/15/2006 DD 06/22/01 SEC ID: 31359MJX2 FNMA POOL #0254510 101.8945 644,381.880 663,713.33 656,589.89 0.15% -7,123.44 5.000% 11/01/2017 DD 10/01/02 SEC ID: 31371KVB4 FNMA POOL #0254631 101.8945 138,843.810 143,009.13 141,474.25 0.03% -1,534.88 5.000% 02/01/2018 DD 01/01/03 SEC ID: 31371KY47 FNMA POOL #0254760 101.8633 123,921.500 127,639.13 126,230.50 0.03% -1,408.63 5.000% 06/01/2018 DD 05/01/03 SEC ID: 31371K5V9 2/7/2005 6:58:40PM PST 3 Workbench @ Asset Detail Report ID: GL8013 Mellon Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED-OCSGOOOIOOOO 1/31/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL #0254866 101.8633 56,155.500 57,840.17 57,201.83 0.01% -638.34 5.000% 09/01/2018 DD 08/01/03 SEC ID: 31371LCB3 FNMA POOL #0254953 101.7695 299,095.990 302,928.17 304,388.58 0.07% 1,460.41 5.000% 11/01/2018 DD 10/01/03 SEC ID: 31371LE21 FNMA POOL #0254987 101.7296 806,533.780 816,867.49 820,483.78 0.19% 3,616.29 5.000% 12/01/2018 DD 11/01/03 SEC ID: 31371LF46 FNMA POOL #0323980 104.8086 140,101.270 146,274.48 146,838.17 0.03% 563.69 6.000% 04/01/2014 DD 09/01/99 SEC ID: 31374T2M0 FNMA POOL #0357328 101.8039 23,428.150 24,131.00 23,850.77 0.01% -280.23 5.000% 01/01/2018 DD 01/01/03 SEC ID: 31376J4M8 FNMA POOL #0357430 101.8633 1,236,443.500 1,250,353.49 1,259,481.90 0.29% 9,128.41 5.000% 09/01/2018 DD 09/01/03 SEC ID: 31376KA71 FNMA POOL #0456482 104.8086 37,789.370 39,454.45 39,606.51 0.01% 152.06 6.000% 02/01/2014 DD 02/01/99 SEC ID : 31381CCT2 FNMA POOL #0509649 104.8086 98,803.880 103,157.42 103,554.95 0.02% 397.53 6.000% 09/01/2014 DD 09/01/99 SEC ID: 31383QEW0 FNMA POOL #0535451 104.8086 109,373.600 114,192.87 114,632.93 0.03% 440.06 6.000% 06/01/2015 DD 07 /01/00 SEC ID: 31384VZQ8 FNMA POOL #0555363 101.8945 296,700.020 305,601.01 302,321.09 0.07% -3,279.92 5.000% 04/01/2018 DD 03/01/03 SEC ID: 31385W5Yl FNMA POOL #0555453 101.8945 30,909.220 31,305.25 31,494.80 0.01% 189.55 5.000% 05/01/2018 DD 04/01/03 SEC ID: 31385XBW6 FNMA POOL #0555545 101.8945 246,561.320 253,958.17 251,232.50 0.06% -2,725.67 5.000% 06/01/2018 DD 05/01/03 SEC ID: 31385XES2 FNMA POOL #0555621 101.7296 852,283.800 861,871.99 867,025.11 0.20% 5,153.12 5.000% 07/01/2018 DD 06/01/03 SEC ID: 31385XG68 FNMA POOL #0681309 101.8945 461,042.760 474,874.04 469,777.35 0.11% -5,096.69 5.000% 02/01/2018 DD 02/01/03 SEC ID: 31391Y3S4 2/7/2005 6:58:40PM PST 4 Workbench @ Asset Detail Report ID: GL8013. Mellon Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGOO0 10000 1/31/2005 Status: FINAL Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL #0681334 101.8945 55,799.580 57,473.57 56,856.72 0.01% -616.85 5.000% 02/01/2018 DD 01/01/03 SEC ID: 31391Y4Tl FNMA GTD REMIC P /T 02-76 PD 99.8188 106,726.560 108,861.09 106,533.18 0.02% -2,327.91 5.000% 08/25/2022 DD 10/01/02 SEC ID: 31392FKF3 FNMA POOL #0684908 101.8945 304,766.680 308,671.52 310,540.58 0.07% 1,869.06 5.000% 06/01/2018 DD 05/01/03 SEC ID: 31400D3Rl FNMA POOL #0685200 101.8945 164,752.130 166,863.04 167,873.41 0.04% 1,010.37 5.000% 03/01/2018 DD 03/01/03 SEC ID: 31400EGH7 FNMA POOL #0685665 101.8945 28,291.800 29,140.55 28,827.80 0.01% -312.75 5.000% 02/01/2018 DD 02/01/03 SEC ID: 31400EW22 FNMA POOL #0686318 101.8945 250,020.020 257,520.62 254,756.72 0.06% -2,763.90 5.000% 03/01/2018 DD 03/01/03 SEC ID: 31400FPB7 FNMA POOL #0688739 101.8633 98,832.450 101,797.42 100,673.98 0 .02% -1,123.44 5.000% 06/01/2018 DD 06/01/03 SEC ID: 31400JEL9 FNMA POOL #0689859 101.8633 83,016.460 84,080.11 84,563.29 0 .02% 483.18 5.000% 05/01/2018 DD 05/01/03 SEC ID: 31400KMG8 FNMA POOL #0693834 101.8945 547,308.060 563,727.29 557,676.98 0.13% -6,050.31 5.000% 03/01/2018 DD 03/01/03 SEC ID: 31400PY74 FNMA POOL #0695852 101.8945 194,015.620 199,836.09 197,691.30 0 .04% -2,144.79 5.000% 05/01/2018 DD 05/01/03 SEC ID: 31400SBV0 FNMA POOL #0695889 101.8945 657,770.130 677,503.25 670,231.78 0 .15% -7,271.47 5.000% 05/01/2018 DD 05/01/03 SEC ID : 31400SC23 FNMA POOL #0697026 101.8945 20,091.160 20,693.91 20,471.79 0.00% -222.12 5.000% 05/01/2018 DD 04/01/03 SEC ID: 31400TLF2 FNMA POOL #0702210 101.7296 203,918.150 210,035.69 207,445.17 0.05% -2,590.52 5.000% 05/01/2018 DD 05/01/03 SEC ID: 31401ADP9 FNMA POOL #0702328 101.8945 120,061.360 121,599.64 122,335.96 0.03% 736.32 5.000% 05/01/2018 DD 04/01/03 SEC ID: 31401AHD2 2/7/2005 6:58:40PM PST 5 Workbench @ Asset Detail Report ID: GL8013 Mellon Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED-OCSGOO0l00OO 1/31/2005 Status: FINAL Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL #0709148 101.8633 250,219.880 257,726.48 254,882.18 0.06% -2,844.30 5.000% 06/01/2018 DD 06/01/03 SEC ID: 31401HZM7 FNMA POOL #0709360 101.8633 562,967.190 570,180.21 573,456.85 0.13% 3,276.64 5.000% 07/01/2018 DD 06/01/03 SEC ID: 31401JB56 FNMA POOL #0709826 101.8633 97,997.020 99,252.60 99,822.98 0.02% 570.38 5.000% 06/01/2018 DD 06/01/03 SEC ID: 31401JSP4 FNMA POOL #070991 7 101.8945 203,006.340 205,607.35 206,852.36 0.05% 1,245.01 5.000% 06/01/2018 DD 06/01/03 SEC ID: 31401JVJ4 FNMA POOL #0709963 101.7296 17,894.910 18,124.20 18,204.42 0.00% 80.22 5.000% 06/01/2018 DD 06/01/03 SEC ID: 31401JWY0 FNMA POOL #0710235 101.8633 534,530.100 550,566.02 544,489.89 0.12% -6,076.13 5.000% 06/01/2018 DD 06/01/03 SEC ID: 31401KBC8 FNMA POOL #0713344 101.8633 14,934.770 15,382.80 15,213.05 0.00% -169.75 5.000% 06/01/2018 DD 06/01/03 SEC ID: 31401NP52 FNMA POOL #0713365 101.8633 235,568.650 238,586.87 239,957.95 0.05% 1,371.08 5.000% 07/01/2018 DD 07 /01/03 SEC ID: 31401NQS1 FNMA POOL #0720319 101.8633 658,543.390 666,980.98 670,813.90 0.15% 3,832.92 5.000% 07/01/2018 DD 07 /01/03 SEC ID: 31401WG45 FNMA POOL #0720369 101.7296 1,964,198.250 2,023,124.20 1,998,171.49 0.45% -24,952.71 5.000% 06/01/2018 DD 06/01/03 SEC ID: 31401WJN0 FNMA POOL #0721629 101.8633 275,482.830 283,747.33 280,615.85 0.06% -3, 131.48 5.000% 07/01/2018 DD 06/01/03 SEC ID: 31401XVW4 FNMA POOL #0723487 101.8633 229,403.050 231,983.84 233,677.47 0.05% 1,693.63 5.000% 06/01/2018 DD 06/01/03 SEC ID: 31402AXQ4 FNMA POOL #0729601 101.8633 366,911.800 371,612.86 373,748.39 0.08% 2,135.53 5.000% 07/01/2018 DD 07 /01/03 SEC ID: 31402HRW3 FNMA POOL #0732873 101.8789 32,803.160 33,223.43 33,419.50 0.01% 196.07 5.000% 11/01/2018 DD 10/01/03 SEC ID: 31402MFNS 2/7/2005 6:58:40PM PST 6 Workbench @ Asset Detail Report ID: GL8013 Mellon Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED-OCSGOO0l00OO 1/31/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL #0737130 101.8633 583,308.360 590,782.00 594,177.03 0.13% 3,395.03 5.000% 10/01/2018 DD 10/01/03 SEC ID: 31402S4P9 FNMA POOL #0738211 101.7296 486,450.040 492,682.70 494,863.80 0.11% 2,181.10 5.000% 10/01/2018 DD 10/01/03 SEC ID: 31402UDQ2 FNMA POOL #0738487 101.7695 172,729.260 174,942.35 175,785.76 0.04% 843.41 5.000% 10/01/2018 DD 10/01/03 SEC ID: 31402UNC2 FNMA POOL #0740471 101.7296 662,242.110 670,727.07 673,696.41 0.15% 2,969.34 5.000% 10/01/2018 DD 10/01/03 SEC ID: 31402WT40 FNMA POOL #0740748 101.8633 711,814.300 720,934.41 725,077.39 0.16% 4,142.98 5.000% 10/01/2018 DD 11/01/03 SEC ID: 31402W5H7 FNMA POOL #0743868 101.7296 34,786.540 35,232.24 35,388.22 0.01% 155.98 5.000% 11/01/2018 DD 10/01/03 SEC ID: 31403BMR1 FNMA POOL #0744008 101.8633 916,730.040 928,475.65 933,811.29 0.21% 5,335.64 5.000% 07/01/2018 DD 09/01/03 SEC ID: 31403BR54 FNMA POOL #0744316 101.7296 145,432.200 147,295.55 147,947.63 0.03% 652.08 5.000% 09/01/2018 DD 09/01/03 SEC ID: 31403B3Z4 FNMA POOL #0747914 101.7695 304,040.910 307,936.44 309,421.01 0.07% 1,484.57 5.000% 11/01/2018 DD 11/01/03 SEC ID: 31403F3X0 FNMA POOL #0748400 101.7296 181,987.220 184,318.93 185,134.91 0.04% 815.98 5.000% 08/01/2018 DD 09/01/03 SEC ID: 31403GNR9 FNMA POOL #0748899 101.7296 891,635.410 903,059.49 907,057.35 0.21% 3,997.86 5.000% 12/01/2018 DD 11/01/03 SEC ID: 31403G7L0 FNMA POOL #0750377 101.7296 1,983,918.380 2,009,337.33 2,018,232.71 0.46% 8,895.38 5.000% 11/01/2018 DD 11/01/03 SEC ID: 31403JUA2 FNMA POOL #0750380 101.7296 1,714,055.580 1,736,016.94 1,743,702.30 0.40% 7,685.36 5.000% 11/01/2018 DD 11/01/03 SEC ID: 31403JUD6 FNMA POOL #0750445 101.7296 165,338.190 167,456.59 168,197.92 0.04% 741.33 5.000% 11/01/2018 DD 11/01/03 SEC ID: 31403JWE2 2/7/2005 6:58:40PM PST 7 Workbench @ Asset Detail Report ID: GL8013 Mellon Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED -OCSGOO0 10000 1/31/2005 Status: FINAL Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL #0751960 101.7296 752,180.910 761,818.24 765,190.81 0.17% 3,372.57 5.000% 12/01/2018 DD 11/01/03 SEC ID: 31403LMH1 FNMA POOL #0753425 101.7695 789,680.260 798,810.93 803,653.89 0.18% 4,842.96 5.000% 11/01/2018 DD 11/01/03 SEC ID : 31403NA23 FNMA POOL #0755165 101.7695 574,320.130 581,678.61 584,482.90 0.13% 2,804.29 5.000% 12/01/2018 DD 11/01/03 SEC ID: 31403Q6A3 FNMA POOL #0756372 101.7695 893,186.360 903,513.82 908,991.56 0.21% 5,477.74 5.000% 11/01/2018 DD 11/01/03 SEC ID: 31403SJR8 FORD MOTOR CR CO NT 100.9530 1,000,000.000 965,170.00 1,009,530.00 0.23% 44,360.00 6.750% 05/15/2005 DD 05/24/93 SEC ID: 345397GV9 GNMA POOL #0421389 105.8750 9,186.020 9,641.02 9,725.70 0.00% 84.68 6.500% 04/15/2026 DD 04/01/96 SEC ID: 36206UC23 GNMA POOL #0449851 105.2625 15,422.320 16,186.21 16,233.92 0.00% 47.71 6.500% 01/15/2028 DD 01/01/98 SEC ID: 36208FWL0 GNMA POOL #0466845 105.8125 32,665.740 34,283.72 34,564.44 0.01% 280.72 6.500% 06/15/2028 DD 06/01/98 SEC ID: 36209BTA6 GNMA POOL #0468052 105.8125 110,664.970 116,146.34 117,097.37 0.03% 951.03 6.500% 07/15/2028 DD 07 /01/98 SEC ID: 36209C5M4 GNMA POOL #0476041 105.8125 137,019.210 143,591.86 144,983.45 0.03% 1,391.59 6.500% 06/15/2028 DD 06/01/98 SEC ID: 36209MZE7 GNMA POOL #04 78626 105.7813 120,442.530 126,220.01 127,405.61 0.03% 1,185.60 6.500% 01/15/2029 DD 01/01/99 SEC ID: 36209QVT9 GNMA POOL #0480598 105.7813 28,735.370 30,113.76 30,396.63 0.01% 282.87 6.500% 10/15/2028 DD 10/01/98 SEC ID: 36209S3F6 GNMA POOL #0512235 105.7813 8,379.430 8,794.47 8,863.87 0.00% 69.40 6 .500% 11/15/2029 DD 11/01/99 SEC ID: 36211GBC6 GNMA POOL #0514326 105.7813 99,962.360 104,757.42 105,741.43 0.02% 984.01 6.500% 07/15/2029 DD 07 /01/99 SEC ID: 36211JLF2 2/7/2005 6:58:40PM PST 8 Workbench @ Asset Detail Report ID: GL8013 Mellon Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGOO0 10000 1/31/2005 Status: FINAL Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par Base Base Total Base GNMA II POOL #0080023 101.5285 157,955.930 160,572.07 160,370.25 0.04% -201.82 VAR RT 12/20/2026 DD 12/01/96 SEC ID: 36225CAZ9 GNMA II POOL #080088M 101.3805 195,310.580 199,583.00 198,006.74 0.04% -1,576.26 7 .375% 06/20/2027 DD 06/01/97 SEC ID: 36225CC20 GNMA II POOL #0080395 101.4098 173,529.160 171,956.55 175,975.49 0.04% 4,018.94 VAR RT 04/20/2030 DD 04/01/00 SEC ID: 36225CNM4 GNMA II POOL #080408X 101.4089 1,575,138.760 1,559,141.25 1,597,330.10 0.36% 38,188.85 VAR RT 05/20/2030 DD 05/01/00 SEC ID: 36225CN28 GNMA II POOL #0080965 100.7495 1,340,481.810 1,339,644.00 1,350,528.05 0.31% 10,884.05 VAR RT 07/20/2034 DD 07 /01/04 SEC ID: 36225DCB8 GENERAL ELEC CAP MTN #TR 00526 100.0000 8,500,000.000 8,505,004.00 8,500,000.00 1.93% -5,004.00 VAR RT 03/15/2005 DD 03/20/02 SEC ID: 36962GXX7 GOLDMAN SACHS GRP MTN 100.2030 3,500,000.000 3,507,850.50 3,507,105.00 0.79% -745.50 #TR00194 VAR RT 10/27/2006 DD 10/29/03 SEC ID: 38141EJB6 GOLDMAN SACHS GRP MTN 100.3430 800,000.000 800,000.00 802,744.00 0.18% 2,744.00 #TR00207 VAR RT 07/23/2009 DD 07 /23/04 SEC ID: 38141EJQ3 GOLDMAN SACHS MTN# TR 00216 100.0000 3,500,000.000 3 ,500,000.00 3,500,000.00 0.79% 0 .00 VAR RT 08/01/2006 DD 02/01/05 SEC ID: 38141EJZ3 GNMA GTD REMIC TR 2000-9 FH 100.7070 484,621.910 484,621.91 488,048.19 0.11% 3,426.28 VAR RT 02/16/2030 SEC ID: 3837H4NX9 MORGAN STANLEY NT 99.2810 3,200,000.000 3,149,248.00 3,176,992.00 0.72% 27,744.00 3.875% 01/15/2009 DD 01/ 13/04 SEC ID: 61746BALO NORWEST FINL INC NT 101.1870 150,000.000 153,084.00 151,780.50 0.03% -1,303.50 7 .600% 05/03/2005 DD 05/03/00 SEC ID: 669383DX6 RESIDENTIAL ASSET 03-RSl 1 AIIB 100.0469 599,570.760 599,570.76 599,851.96 0 .14% 281.20 VAR RT 12/25/2033 DD 12/30/03 SEC ID: 760985K83 2/7/2005 6:58:40PM PST 9 Workbench @ Asset Detail Report ID: GL8013 Mellon Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOUDATED-OCSGOO0l00OO 1/31/2005 Status: FINAL Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par I, . Base Base Total ' Base SBA GTD DEV PARTN 2001-20C 1 107.4500 2,985,923.500 2,985,923.50 3,208,374.80 0.73% 222,451.30 6 .340% 03/01/2021 SEC ID: 83162CW0 SBA GTD PARTN CTFS SBIC-PS 0 1 106.2300 1,920,261.520 1,920,261.52 2,039,893.81 0.46% 119,632.29 6.640% 02/10/2011 DD 02/21/01 SEC ID: 831641DD4 UNITED AIRLS PASSTHRU 0 1-1 C 8.1490 1,600,000.000 1,600,000.00 130,384.00 0.03% -1,469,616.00 6.831% 03/01/2010 DD 08/22/01 SEC ID: 909317BC2 U S TREASURY BILL 99.1050 3,300,000.000 3,261,060.00 3,270,465.00 0.74% 9,405.00 0.000% 06/09/2005 DD 12/09/04 SEC ID: 912795SS1 U S TREASURY NOTES 105.8440 20,000,000.000 22,620,312.50 21,168,800.00 4.80% -1,451,512.50 06.250% 02/15/2007 DD 02/15/97 SEC ID: 9128272J0 US TREASURY INFLATION INDEX NT 104.9065 16,877,280.000 14,962,056.88 17,705,363.74 4.01% 2,743,306.86 3.375% 01/15/2007 DD 01/15/97 SEC ID : 9128272M3 US TREASURY INFLATION INDEX NT 107.7815 3,546,720.000 3,855,784.48 3,822,708.02 0.87% -33,076.46 3.625% 01/15/2008 DD 01/ 15/98 SEC ID: 9128273T7 US TREASURY INFLATION INDEX NT 110.9065 15,139,930.000 16,762,989.05 16,791,166.47 3.80% 28,177.42 3.875% 01/15/2009 DD 01/15/99 SEC ID: 9128274Y5 U S TREASURY NOTES 102.2190 3,900,000.000 4,288,149.14 3,986,541.00 0.90% -301,608.14 05.750% 11/15/2005 DD 11/15/00 SEC ID: 9128276N7 U S TREASURY NOTES 99.3700 17,600,000.000 17,405,000.00 17,489,120.00 3.96% 84,120.00 3.375% 12/15/2008 DD 12/15/03 SEC ID: 912828BT6 U S TREASURY NOTES 99.5300 27,500,000.000 27,463,468.63 27,370,750.00 6.20% -92,718.63 2.750% 06/30/2006 DD 06/30/04 SEC ID: 912828CM0 U S TREASURY NOTES 99.4700 49,000,000.000 49,103,927.41 48,740,300.00 11.04% -363,627.41 2.750% 07/31/2006 DD 07 /31/04 SEC ID: 912828CQ1 U S TREASURY NOTES 98.8100 55,300,000.000 55,048,031.25 54,641,930.00 12.38% -406,101.25 2.375% 08/31/2006 DD 08/31/04 SEC ID: 912828CU2 U S TREASURY NOTES 99.3800 20,800,000.000 20,717,574.59 20,671,040.00 4.68% -46,534.59 2.875% 11/30/2006 DD 11/30/04 SEC ID: 912828DD9 2/7/2005 6:58:40PM PST 10 Workbench @ Mellon OCSD-CONSOUDATED -OCSGOOO 10000 Description U S TREASURY NOTES 3.500% 12/15/2009 DD 12/15/04 SEC ID: 912828DE7 VIRGINIA ELEC & PWR 0 1 SER A 5.750% 03/31/2006 DD 03/27/01 SEC ID: 927804EN0 . TOTAL FIXED INCOME SECURITIES TOTAL ASSETS U.S. DOLLAR Price Base 99.1900 102.5460 TOTAL ASSETS -BASE: 2/7/2005 6:58:40PM PST Asset Detail by Currency 1/31/2005 Cost Shares Par Base 14,000,000.000 13,870,390.17 1,750,000.000 1,743,840.00 384,051,393.090 388,344,587.37 479,712,577.120 442,497,914.70 479,712,577.120 442,497,914.70 11 ReportlD: GL801~ Base Currency: USD Alternate Base Currency: Exchange Rate: Status: FINAL Net Unrealized Market Value %of Gain/Loss Base Total Base 13,886,600.00 3.15% 16,209.83 1,794,555.00 0.41% 50,715.00 387,156,609.43 87.73% -1, 187,977.94 441,309,936.76 100.00% -1, 187,977.94 441,309,936.76 100.00% -1,187,977.94 Workbench Transaction Detail . @ Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOUDATED -OCSGOO0 10000 1/3/2005-1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base PURCHASES CASH & CASH EQUIVALENTS U.S. DOLLAR B FEDERAL HOME LN BK CONS DISC N MAT 1/4/2005 99.9940 10,100,000.000 10,099,396.81 -10,099,396.81 0.00 01/05/2005 1/4/2005 SEC ID: 313385AE6 1/4/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202: LONG TERM OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 1/5/2005 99.9940 1,300,000.000 1,299,921.64 -1,299,921.64 0.00 01/06/2005 1/5/2005 SEC ID: 313385AF3 1/5/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202: LONGTERM OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 1/20/2005 99.9941 700,000.000 699,958.39 -699,958.39 0.00 01/21/2005 1/20/2005 SEC ID: 313385AW6 1/20/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202: LONG TERM OPER-PIMCO B FEDERAL HOME LN BK CONS SYSTEM MAT 1/26/2005 99.3519 3,000,000.000 2,980,556.33 -2,980,556.33 0.00 04/27/2005 1/26/2005 SEC ID: 313385EW2 1/26/2005 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 1/21/2005 98.9394 800,000.000 791,515.33 -791,515.33 0.00 06/13/2005 1/21/2005 SEC ID: 313397GV7 1/21/2005 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INCNY OCSF07522202: LONG TERM OPER-PIMCO B FEDERAL NATL MTG ASSN DISCOUNT MAT 1/5/2005 99.3706 10,000,000.000 9,937,058.33 -9,937,058.33 0.00 04/06/2005 1/5/2005 SEC ID: 313589DZ3 1/5/2005 BROKER: MORGAN STANLEY & CO INC, NY OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 1 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCS D-CONSOLI DATE DOIIT2 O 00 00'.JOOC:l•O 1/3/2005-1/31/2005 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 NATL MTG ASSN DISCOUNT MAT 1/6/2005 99.3788 1,300,000.000 1,291,923.75 -1,291,923.75 0.00 04/06/2005 1/6/2005 SEC ID: 313589DZ3 1/6/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07522202: LONG TERM OPER-PIMCO B FEDERAL NATL MTG ASSN DISC NTS MAT 1/25/2005 99.3466 4,400,000.000 4,371,249.06 -4,371,249.06 0.00 004 /27 /2005 1/26/2005 SEC ID: 313589EW9 1/25/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO B FEDERAL NATL MTG ASSN DISC NTS MAT 1/26/2005 99.3476 2,000,000.000 1,986,951.61 -1,986,951.61 0.00 004/27/2005 1/26/2005 SEC ID: 313589EW9 1/26/2005 BROKER: BARCLAYS CAPITAL INC , NEW YORK OCSF07511102: LIQUID OPER-PIMCO B FEDERAL NATL MTG ASSN DISC NTS MAT 1/27/2005 99.3545 4,300,000.000 4,272,243.50 -4,272,243.50 0.00 004/27/2005 1/27/2005 SEC ID: 313589EW9 1/27/2005 BROKER: BARCLAYS CAPITAL INC, NEW YORK OCSF07511102: LIQUID OPER-PIMCO B US TREASURY BILL DUE 06/16/2005 DD 1/11/2005 98.9177 16,000,000.000 15,826,835.55 -15,826,835.55 0.00 12/16/2004 1/13/2005 SEC ID: 912795ST9 1/11/2005 BROKER: BANC OF AMERICA SEC LLC , SAN FRANCISCO OCSF07522202: LONG TERM OPER-PIMCO B US TREASURY BILL DUE 07/21/2005 DD 1/21/2005 98.7182 16,000,000.000 15,794,904.44 -15,794,904.44 0.00 01/20/2005 1/24/2005 SEC ID: 912795VH1 1/21/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 2 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD--CONSOLIDATE DJ[][][2 J DD •••••••• 1/3/2005-1/31/2005 Status: FINAL Trade Date ~ Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base • Base B WELLS FARGO BANK NA INSTL C/D 2.520% l /31 /2005 100.0000 300,000.000 300,000.00 -300,000.00 0.00 02/ 17 /2005 DD 02/01 /05 2/1/2005 SEC ID: 9497Pl5Kl 1/31/2005 BROKER: WELLS FARGO BROKERAGE SVCS LLC, MINNEAP OCSF07511102: LIQUID OPER-PIMCO B WELLS FARGO BANK NA INSTL C/D 2.420% 1/24/2005 100.0000 1,300,000.000 1,300,000.00 -1,300,000.00 0.00 02/15/2005 DD O 1/25 /05 1/25/2005 SEC ID: 9497P l 7M5 1/24/2005 BROKER: WELLS FARGO BROKERAGE SVCS LLC, MINNEAP OCSF07511102: LIQUID OPER-PIMCO B CREDIT SUISSE FB REPO 02.090% 01/04/2005 1/3/2005 100.0000 10,900,000.000 10,900,000.00 -10,900,000.00 0.00 DD 01/03/05 1/3/2005 SEC ID: 99429U678 1/3/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07522202: LONG TERM OPER-PIMCO B LEHMAN CAT 1 REPO REPO 02.100% 1/3/2005 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 01/04/2005 DD O 1/03/05 1/3/2005 SEC ID: 99429U934 1/3/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO B CREDIT SUISSE FB REPO 02.100% 01/05/2005 1/4/2005 100.0000 1,200,000.000 1,200,000.00 -1,200,000.00 0.00 DD 01/04/05 1/4/2005 SEC ID: 99429W310 1/4/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07522202: LONG TERM OPER-PIMCO B LEHMAN CAT 2 REPO 02.130% 01/05/2005 DD 1/4/2005 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 01/04/05 1/4/2005 SEC ID: 99429W476 1/4/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 02.080% 01/06/2005 DD 1/5/2005 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 01/05/05 1/5/2005 SEC ID: 99429X722 1/5/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 3 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D::m:2 0 JO D••••JOIJ 1/3/2005-1/31/2005 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 02.130% 01/07/2005 DD 1/6/2005 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 01/06/05 1/6/2005 SEC ID: 99429Z271 1/6/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 02.050% 01/10/2005 DD 1/7/2005 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 01/07/05 1/7/2005 SEC ID: 99430A760 1/7/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 02.090% 1/10/2005 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 01/11/2005 DD 01/10/05 1/10/2005 SEC ID: 99430Cl05 1/10/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 02 .070% 1/11/2005 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 01 /12/2005 DD O 1/ 11 /05 1/11/2005 SEC ID: 99430D442 1/11/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO B CREDIT SUISSE FB REPO 02.030% 01/13/2005 1/12/2005 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 DD 01/12/05 1/12/2005 SEC ID: 99430E770 1/12/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 02.170% 1/13/2005 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 01/14/2005 DD O 1/ 13 /05 1/13/2005 SEC ID: 994300122 1/13/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 02.180% 01/18/2005 DD 1/14/2005 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 Ol/14/05 1/14/2005 SEC lD: 99430H989 1/14/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO 2/7/2005 7:01 :0lPM PST Workbench 4 Transaction Detail ' @ Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCS D-CONSOLI DATE D::m:2 '.J '.JD ••'.J[J•::JD• 1/3/2005-1/31/2005 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 02.240% 01/19/2005 1/18/2005 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 DD 01/ 18/05 1/18/2005 SEC ID: 99430K370 1/18/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO B CREDIT SUISSE FB REPO 02.070% 01/20/2005 1/19/2005 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 DDOl/19/05 1/19/2005 SEC ID: 99430L998 1/19/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 02.120% 1/20/2005 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 01/21/2005 DD O 1/20 /05 1/20/2005 SEC ID: 99430N408 1/20/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 02.150% 1/21/2005 100.0000 13,300,000.000 13,300,000.00 -13,300,000.00 0.00 01/24/2005 DD O 1/21 /05 1/21/2005 SEC ID: 99430?791 1/21/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 02.140% 1/24/2005 100.0000 13,300,000.000 13,300,000.00 -13,300,000.00 0.00 01/25/2005 DD O 1/24 /05 1/24/2005 SEC ID: 99430R508 1/24/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO B CREDIT SUISSE FB REPO 02.150% 01/26/2005 1/25/2005 100.0000 12,000,000.000 12,000,000.00 -12,000,000.00 0.00 DD 01/25/05 1/25/2005 SEC ID: 99430S985 1/25/2005 BROKER CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 5 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATEDJIJ[[2 ;J •• ••o••u•• 1/3/2005-1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base I Base B CREDIT SUISSE FB REPO 02.140% 01/27/2005 1/26/2005 100.0000 13,000,000.000 13,000,000.00 -13,000,000.00 0.00 DD 01/26/05 1/26/2005 SEC ID: 99430U394 1/26/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF0751 l 102: LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 02.270% 01/28/2005 DD 1/27/2005 100.0000 12,000,000.000 12,000,000.00 -12,000,000.00 0.00 01/27 /05 1/27/2005 SEC ID: 99430V772 1/27/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 02.290% 1/28/2005 100.0000 12,000,000.000 12,000,000.00 -12,000,000.00 0.00 01/31/2005 DD O 1/28 /05 1/28/2005 SEC ID: 99430X414 1/28/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 02.460%02/01/2005 DD 1/31/2005 100.0000 12,000,000.000 12,000,000.00 -12,000,000.00 0.00 01/31/05 1/31/2005 SEC ID: 99430Y594 1/31/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO B DREYFUS TREASURY CASH MGMT 1/3/2005 1.0000 51.250 51.25 -51.25 0.00 SEC ID: 996085247 1/3/2005 OCSF07522202: LONG TERM OPER-PIMCO 1/3/2005 B DREYFUS TREASURY CASH MGMT 1/4/2005 1.0000 717.500 717.50 -717.50 0.00 SEC ID: 996085247 1/4/2005 OCSF07511102: LIQUID OPER-PIMCO 1/4/2005 B DREYFUS TREASURY CASH MGMT 1/5/2005 1.0000 1,698.680 1,698.68 -1,698.68 0.00 SEC ID: 996085247 1/5/2005 OCSF07511102: LIQUID OPER-PIMCO 1/5/2005 B DREYFUS TREASURY CASH MGMT 1/5/2005 1.0000 113,574.220 113,574.22 -113,574.22 0.00 SEC ID: 996085247 1/5/2005 OCSF07522202: LONG TERM OPER-PIMCO 1/5/2005 2/7/2005 7:01:0lPM PST Workbench 6 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD--CONSOLIDATE DJ[][[2 0 OD oo::m•'J OO 1/3/2005-1/31/2005 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 MGMT 1/6/2005 1.0000 8,076.250 8,076.25 -8,076.25 0.00 SEC ID: 996085247 1/6/2005 OCSF07522202 : LONG TERM OPER-PIMCO 1/6/2005 B DREYFUS TREASURY CASH MGMT 1/6/2005 1.0000 710.670 710.67 -710.67 0.00 SEC ID: 996085247 1/6/2005 OCSF07511102 : LIQUID OPER-PIMCO 1/6/2005 B DREYFUS TREASURY CASH MGMT 1/7/2005 1.0000 727.750 727.75 -727.75 0.00 SEC ID: 996085247 1/7/2005 OCSF07511102: LIQUID OPER-PIMCO 1/7/2005 B DREYFUS TREASURY CASH MGMT 1/10/2005 1.0000 2,101.250 2,101.25 -2,101.25 0.00 SEC ID: 996085247 1/10/2005 OCSF07511102: LIQUID OPER-PIMCO 1/10/2005 B DREYFUS TREASURY CASH MGMT 1/11/2005 1.0000 714,080 714.08 -714.08 0.00 SEC ID: 996085247 1/11/2005 OCSF07511102: LIQUID OPER-PIMCO 1/11/2005 B DREYFUS TREASURY CASH MGMT 1/12/2005 1.0000 707.250 707.25 -707.25 0.00 SEC ID: 996085247 1/12/2005 OCSF07511102: LIQUID OPER-PIMCO 1/12/2005 B DREYFUS TREASURY CASH MGMT 1/13/2005 1.0000 693.580 693.58 -693.58 0.00 SEC ID: 996085247 1/13/2005 OCSF07511102: LIQUID OPER-PIMCO 1/13/2005 B DREYFUS TREASURY CASH MGMT 1/13/2005 1.0000 89,258.840 89,258.84 -89,258.84 0.00 SEC ID: 996085247 1/13/2005 OCSF07522202: LONG TERM OPER-PIMCO 1/13/2005 B DREYFUS TREASURY CASH MGMT 1/14/2005 1.0000 12,300,741.420 12,300,741.42 -12,300,741.42 0.00 SEC ID: 996085247 1/14/2005 OCSF07511102: LIQUID OPER-PIMCO 1/14/2005 B DREYFUS TREASURY CASH MGMT 1/18/2005 1.0000 531,161.280 531,161.28 -531,161.28 0.00 SEC ID: 996085247 1/18/2005 OCSF07522202: LONG TERM OPER-PIMCO 1/18/2005 2/7/2005 7:01 :0lPM PST Workbench 7 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE DJIJill2 0 00 OOCJ ••O•• 1/3/2005-1/31/2005 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 MGMT 1/19/2005 1.0000 765.330 765.33 -765.33 0.00 SEC ID: 996085247 1/19/2005 OCSF07511102: LIQUID OPER-PIMCO 1/19/2005 8 DREYFUS TREASURY CASH MGMT 1/19/2005 1.0000 56,750.980 56,750.98 -56,750.98 0.00 SEC ID: 996085247 1/19/2005 OCSF07522202: LONG TERM OPER-PIMCO 1/19/2005 B DREYFUS TREASURY CASH MGMT 1/20/2005 1.0000 707.250 707.25 -707.25 0.00 SEC ID: 996085247 1/20/2005 OCSF07511102: LIQUID OPER-PIMCO 1/20/2005 B DREYFUS TREASURY CASH MGMT 1/21/2005 1.0000 724.330 724.33 -724.33 0.00 SEC ID: 996085247 1/21/2005 OCSF07511102: LIQUID OPER-PIMCO 1/21/2005 8 DREYFUS TREASURY CASH MGMT 1/24/2005 1.0000 49,225.560 49,225.56 -49,225.56 0.00 SEC ID: 996085247 1/24/2005 OCSF07522202: LONG TERM OPER-PIMCO 1/24/2005 B DREYFUS TREASURY CASH MGMT 1/24/2005 1.0000 2,382.920 2,382.92 -2,382.92 0.00 SEC ID: 996085247 1/24/2005 OCSF07511102 : LIQUID OPER-PIMCO 1/24/2005 8 DREYFUS TREASURY CASH MGMT 1/25/2005 1.0000 790.610 790.61 -790.61 0.00 SEC ID: 996085247 1/25/2005 OCSF07511102: LIQUID OPER-PIMCO 1/25/2005 8 DREYFUS TREASURY CASH MGMT 1/25/2005 1.0000 840,325.850 840,325.85 -840,325.85 0.00 SEC ID: 996085247 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO 1/25/2005 8 DREYFUS TREASURY CASH MGMT 1/26/2005 1.0000 3,236,583.890 3,236,583.89 -3,236,583.89 0.00 SEC ID: 996085247 1/26/2005 OCSF07511102: LIQUID OPER-PIMCO 1/26/2005 B DREYFUS TREASURY CASH MGMT 1/27/2005 1.0000 20,393.330 20,393.33 -20,393.33 0.00 SEC ID: 996085247 1/27/2005 OCSF07522202: LONG TERM OPER-PIMCO 1/27/2005 2/7/2005 7:01:0lPM PST Workbench 8 Transaction Detail . @ Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE DclilITI2 0 OD oo::m•u•IJ 1/3/2005-1/31/2005 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 MGMT 1/28/2005 1.0000 6,693.900 6,693.90 -6,693.90 0.00 SEC ID: 996085247 1/28/2005 OCSF07522202: LONG TERM OPER-PIMCO 1/28/2005 B DREYFUS TREASURY CASH MGMT 1/28/2005 1.0000 756.670 756.67 -756.67 0.00 SEC ID: 996085247 1/28/2005 OCSF07511102 : LIQUID OPER-PIMCO 1/28/2005 B DREYFUS TREASURY CASH MGMT 1/31/2005 1.0000 701,743.840 701,743.84 -701,743.84 0.00 SEC ID: 996085247 1/31/2005 OCSF07522202: LO NG TERM OPER-PIMCO 1/31/2005 TOTAL CASH & CASH EQUIVALENTS U.S. DOLLAR: 349,068,778.480 348,521,293.22 -348,521,293.22 0.00 TOTAL CASH & CASH EQUIVALENTS BASE: 349,068,778.480 348,521,293.22 -348,521,293.22 0.00 FIXED INCOME SECURITIES U.S. DOLLAR B COMMIT TO PUR FNMA SF MTG 5.000% 1/11/2005 101.3594 22,000,000.000 22,299,062.50 -22,299,062.50 0.00 02/01/2020 DD 02/01 /05 2/15/2005 SEC ID: 01F050429 1/11/2005 BROKER: UBS SECURITIES LLC, STAMFORD OCSF07522202: LONG TERM OPER-PIMCO B COMMIT TO PUR FNMA SF MTG 5 .500% 1/10/2005 101.1563 1,000,000.000 1,011,562.50 -1,011,562.50 0.00 02/01/2035 DD 02/01 /05 2/10/2005 SEC ID: 01F052623 1/10/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202: LONG TERM OPER-PIMCO B COMMIT TO PUR FNMA SF MTG 5.500% 1/10/2005 101.2070 3,000,000.000 3,036,210.93 -3,036,210.93 0.00 02/01/2035 DD 02/01 /05 2/10/2005 SEC ID: 01F052623 1/10/2005 BROKER: GOLDMAN SACHS & CO, NY OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 9 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE DJ[][][2 ;Ju• ••::mo••• 1/3/2005-1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B GOLDMAN SACHS MTN# TR 00216 VAR RT 1/27/2005 100.0000 3,500,000.000 3,500,000.00 -3,500,000.00 0.00 08/01/2006 DD 02/01 /05 2/1/2005 SEC ID: 38141EJZ3 1/27/2005 BROKER: GOLDMAN SACHS & CO, NY OCSF07522202: LONG TERM OPER-PIMCO B USTREASURYNOTES 3.500%12/15/2009DD 1/18/2005 99.0032 14,000,000.000 13,860,443.66 -13,860,443.66 0.00 12/ 15/04 1/31/2005 SEC ID: 912828DE7 1/18/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202: LONG TERM OPER-PIMCO IB US TREASURY NOTES 3.500% 12/15/2009 DD 1/18/2005 99.0032 0.000 0.00 -63,269.23 0.00 12/ 15/04 1/31/2005 SEC ID: 912828DE7 1/18/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202: LONG TERM OPER-PIMCO B US TREASURY NOTES 3.500% 12/15/2009 DD 1/28/2005 99.1453 14,000,000.000 13,880,336.68 -13,880,336.68 0.00 12/15/04 2/15/2005 SEC ID: 912828DE7 1/28/2005 BROKER: UBS SECURITIES LLC, STAMFDRD OCSF07522202: LONG TERM OPER-PIMCO IB U S TREASURY NOTES 3.500% 12/15/2009 DD 1/28/2005 99.1453 0.000 0.00 -83,461.54 0.00 12/15/04 2/15/2005 SEC ID: 912828DE7 1/28/2005 BROKER: UBS SECURITIES LLC, STAMFDRD OCSF07522202: LONG TERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: 57,500,000.000 57,587,616.27 -57,734,347.04 0.00 TOTAL FIXED INCOME SECURITIES BASE: 57,500,000.000 57,587,616.27 -57,734,347.04 0.00 TOTAL PURCHASES BASE: 406,568,778.480 406,108,909.49 -406,255,640.26 0.00 PAY UPS FIXED INCOME SECURITIES U.S. DOLLAR 2/7/2005 7:01:0lPM PST Workbench 10 Transaction Detail . ® Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE DJ[][[2 '.J '.JD OO'.JDDCJ'.J• 1/3/2005-1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base PU US TREASURY INFLATION INDEX NT 3.375% 1/15/2005 100.0000 11,480.000 11,480.00 -11,480.00 0.00 01/15/2007 DD O 1/ 15 /97 1/15/2005 SEC ID: 9128272M3 1/15/2005 OCSF07522202: LONG TERM OPER-PIMCO PU US TREASURY INFLATION INDEX NT 3.625% 1/15/2005 100.0000 2,400.000 2,400.00 -2,400.00 0.00 01/15/2008 DD 01/15/98 1/15/2005 SEC ID: 9128273T7 1/15/2005 OCSF07522202: LONG TERM OPER-PIMCO PU US TREASURY INFLATION INDEX NT 3.875% 1/15/2005 100.0000 10,140.000 10,140.00 -10,140.00 0.00 01/15/2009 DD O 1/ 15 /99 1/15/2005 SEC ID: 91282 74YS 1/15/2005 OCSJ?07522202: LONG TERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: 24,020.000 24,020.00 -24,020.00 0.00 TOTAL FIXED INCOME SECURITIES BASE: 24,020.000 24,020.00 -24,020.00 0.00 TOTAL PAY UPS BASE: 24,020.000 24,020.00 -24,020.00 0.00 SALES CASH & CASH EQUIVALENTS U.S. DOLLAR s FEDERAL HOME LN BK CONS DISC N MAT 1/18/2005 99.8343 -10,100,000.000 -10,083,267.67 10,083,267.67 0.00 01/28/2005 1/18/2005 SEC ID: 313385BD7 1/18/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202: LONG TERM OPER-PIMCO IS FEDERAL HOME LN BK CONS DISC N MAT 1/18/2005 99.8343 0.000 0.00 10,728.44 0.00 01/28/2005 1/18/2005 SEC ID: 313385BD7 1/18/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 11 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCS D-CONSOLI DATE DO!ffi? 0 JD O•J ••O•• 1/3/2005-1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par ,. Base Base Base s FEDERAL NATL MTG ASSN DISCOUNT MAT 1/25/2005 99.5788 -1,000,000.000 -995,787.78 995,787.78 0.00 02/02/2005 1/26/2005 SEC ID: 313589B.Jl 1/25/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 1/25/2005 99.5788 0.000 0.00 3,823.33 0.00 02/02/2005 1/26/2005 SEC ID: 313589B.Jl 1/25/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF0751 l 102: LIQUID OPER-PIMCO s FEDERAL NATL MTG ASSN DISCOUNT MAT 1/25/2005 99.4419 -4,000,000.000 -3,977,675.83 3,977,675.83 0.00 02/16/2005 1/26/2005 SEC ID: 313589BY8 1/25/2005 BROKER: BARCLAYS CAPITAL INC, NEW YORK OCSF07511102: LIQUID OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 1/25/2005 99.4419 0.000 0.00 16,934.17 0.00 02/16/2005 1/26/2005 SEC ID: 313589BY8 1/25/2005 BROKER: BARCLAYS CAPITAL INC, NEW YORK OCSF07511102: LIQUID OPER-PIMCO s FEDERAL NATL MTG ASSN DISCONT MAT 1/25/2005 99.4553 -1,600,000.000 -1,591,285.33 1,591,285.33 0.00 02/23/2005 1/26/2005 SEC ID: 313589CF8 1/25/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCONT MAT 1/25/2005 99.4553 0.000 0.00 5,777.78 0.00 02/23/2005 1/26/2005 SEC ID: 313589CF8 1/25/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO 2/7/2005 7:01 :0lPM PST Workbench 12 . Transaction Detail @ Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLJDATE D:::m:2 J JD •JJ••J •• 1/3/2005-1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par I Base Base Base s FEDERAL NATL MTG ASSN DISCOUNT MAT 1/25/2005 99.4173 -6,000,000.000 -5,965,040.83 5,965,040.83 0.00 03/02/2005 1/26/2005 SEC ID: 313589CN1 1/25/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 1/25/2005 99.4173 0.000 0.00 21,075.84 0.00 03/02/2005 1/26/2005 SEC ID: 313589CN 1 1/25/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO s FEDERAL NATL MTG ASSN DISCOUNT MAT 1/25/2005 99.4150 -1,000,000.000 -994, 150.00 994,150.00 0.00 03/09/2005 1/26/2005 SEC ID: 313589CV3 1/25/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF0751 l102: LIQUID OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 1/25/2005 99.4150 0.000 0.00 3,073.33 0.00 03/09/2005 1/26/2005 SEC ID: 313589CV3 1/25/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO s FEDERAL NATL MTG ASSN DISCOUNT MAT 1/18/2005 99.3756 -500,000.000 -496,878.19 496,878.19 0.00 03/30/2005 1/18/2005 SEC ID: 313589DS9 1/18/2005 BROKER: CHASE SECURITIES, NEW YORK OCSF07522202: LONG TERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 1/18/2005 99.3756 0.000 0.00 745.28 0.00 03/30/2005 1/18/2005 SEC ID: 313589DS9 1/18/2005 BROKER: CHASE SECURITIES, NEW YORK OCSF07522202: LONG TERM OPER-PIMCO s FEDERAL NATL MTG ASSN DISCOUNT MAT 1/18/2005 99.3715 -3,200,000.000 -3,179,888.73 3,179,888.73 0.00 04/06/2005 1/18/2005 SEC ID: 313589DZ3 1/18/2005 BROKER: GOLDMAN SACHS & CO, NY OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 13 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCS D-CONSOLI DATE DJOIJI2 D DO •••••••• 1/3/2005-1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base ~ IS FEDERAL NATL MTG ASSN DISCOUNT MAT 1/18/2005 99.3715 0.000 0.00 3,124.60 0.00 04/06/2005 1/18/2005 SEC ID: 313589023 1/18/2005 BROKER: GOLDMAN SACHS & CO, NY OCSF07522202: LONG TERM OPER-PIMCO s FEDERAL NATL MTG ASSN DISCOUNT MAT 1/19/2005 99.3719 -7,000,000.000 -6,956,006.60 6,956,032.58 25.98 04/06/2005 1/19/2005 SEC ID: 313589D23 1/19/2005 BROKER: GOLDMAN SACHS & CO, NY OCSF07522202: LONG TERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 1/19/2005 99.3719 0.000 0.00 7,135.76 0.00 04/06/2005 1/19/2005 SEC ID: 313589023 1/19/2005 BROKER: GOLDMAN SACHS & CO, NY OCSF07522202: LONG TERM OPER-PIMCO s US TREASURY BILL 0.000% 03/31/2005 DD 1/11/2005 99.0246 -16,000,000.000 -15,843,937.78 15,843,937.60 -0.18 09/30/04 1/13/2005 SEC ID: 912795SG7 1/11/2005 BROKER: GOLDMAN SACHS & CO, NY OCSF07522202: LONG TERM OPER-PIMCO IS US TREASURY BILL 0.000% 03/31/2005 DD 1/11/2005 99.0246 0.000 0.00 79,969.29 0.00 09/30/04 1/13/2005 SEC ID: 912795SG7 1/11/2005 BROKER: GOLDMAN SACHS & CO, NY OCSF07522202: LONG TERM OPER-PIMCO s US TREASURY BILL DUE 06/16/2005 DD 1/21/2005 98.9177 -16,000,000.000 -15,826,835.55 15,826,835.20 -0.35 12/16/2004 1/24/2005 SEC ID: 912795ST9 1/21/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202: LONG TERM OPER-PIMCO IS US TREASURY BILL DUE 06/16/2005 DD 1/21/2005 98.9177 0.000 0.00 17,294.80 0.00 12/16/2004 1/24/2005 SEC ID: 912795ST9 1/21/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 14 Transaction Detail . @ Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCS D-CONSOLI DATE DJ!Il2 J JD D•JDDJDD 1/3/2005-1/31/2005 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 1 REPO REPO 01.650% 1/3/2005 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 01/03/2005 DD 12/31 /04 1/3/2005 SEC ID: 99429T630 1/3/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 01.650% 1/3/2005 100.0000 0.000 0.00 1,691.25 0.00 01/03/2005 DD 12/31/04 1/3/2005 SEC ID: 99429T630 1/3/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO s CREDIT SUISSE FB REPO 02.090% 01/04/2005 1/4/2005 100.0000 -10,900,000.000 -10,900,000.00 10,900,000.00 0.00 DD 01 /03/05 1/4/2005 SEC ID: 994290678 B ROKER: CREDLT SUISSE FIRST BOSTON 1/4/2005 CORP, NY OCSF07522202: LONG TERM OPER-PIMCO IS CREDIT SUISSE FB REPO 02.090% 01/04/2005 1/4/2005 100.0000 0.000 0.00 632.81 0.00 DO 01 /03/05 1/4/2005 SEC ID: 99429U678 1/4/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07522202: LONG TERM OPER-PIMCO s LEHMAN CAT 1 REPO REPO 02.100% 1/4/2005 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 01/04/2005 DD O 1/03 /05 1/4/2005 SEC ID: 99429U934 1/4/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 02.100% 1/4/2005 100.0000 0.000 0.00 717.50 0.00 01/04/2005 DD O 1/03 /05 1/4/2005 SEC ID: 99429U934 1/4/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO s CREDIT SUISSE FB REPO 02.100% 01/05/2005 1/5/2005 100.0000 -1,200,000.000 -1,200,000.00 1,200,000.00 0.00 DD 01 /04/05 1/5/2005 SEC ID: 99429W310 1/5/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 15 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATEDJllill2 J JD •mm•••• 1/3/2005-1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IS CREDIT SUISSE FB REPO 02.100% 01/05/2005 1/5/2005 100.0000 0.000 0.00 70.00 0.00 DD 01 /04/05 1/5/2005 SEC ID: 99429W310 1/5/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF0752 2202: LONG TERM OPER-PIMCO s LEHMAN CAT 2 REPO 02.130% 01/05/2005 DD 1/5/2005 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 01/04/05 1/5/2005 SEC ID: 99429W476 1/5/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 02.130% 01/05/2005 DD 1/5/2005 100.0000 0.000 0.00 727.75 0.00 01/04/05 1/5/2005 SEC ID: 99429W476 1/5/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO s LEHMAN CAT 2 REPO 02.080% 01/06/2005 DD 1/6/2005 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 01/05/05 1/6/2005 SEC ID: 99429X722 1/6/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 02.080% 01/06/2005 DD 1/6/2005 100.0000 0.000 0.00 710.67 0.00 01/ 05/05 1/6/2005 SEC ID: 99429X722 1/6/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO s LEHMAN CAT 2 REPO 02.130% 01/07/2005 DD 1/7/2005 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 01/ 06/05 1/7/2005 SEC ID: 994292271 1/7/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 02.130% 01/07/2005 DD 1/7/2005 100.0000 0.000 0.00 727.75 0.00 Ol/06/05 1/7/2005 SEC ID: 994292271 1/7/2005 BRO.KER: LEJ:{MAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 16 Transaction Detail . @ Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE D:::nn.2 0 JO ••:::J••J •• 1/3/2005-1/31/2005 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 REP0.02.050% 01/10/2005 DD 1/10/2005 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 01/07/05 1/10/2005 SEC ID: 994-30A760 1/10/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 02.050% 01/10/2005 DD 1/10/2005 100.0000 0.000 0.00 2,101.25 0.00 01/07/05 1/10/2005 SEC JD: 99430A760 1/10/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO s LEHMAN CAT 1 REPO REPO 02.090% 1/11/2005 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 01/11/2005 DD O 1/ 10 /05 1/11/2005 SEC ID: 99430Cl05 1/11/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 02.090% 1/11/2005 100.0000 0.000 0.00 714.08 0.00 01/11/2005 DD O 1/ 10 /05 1/11/2005 SEC ID: 99430C105 1/11/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO s LEHMAN CAT 1 REPO REPO 02.070% 1/12/2005 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 01/12/2005 DD O 1/ 11 /05 1/12/2005 SEC ID: 99430D442 1/12/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 02.070% 1/12/2005 100.0000 0.000 0.00 707.25 0.00 01/12/2005 DD O 1/ 11 /05 1/12/2005 SEC ID: 99430D442 1/12/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO s CREDIT SUISSE FB REPO 02.030% 01/13/2005 1/13/2005 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 DD 01/ 12/05 1/13/2005 SEC tD: 99430E770 1/13/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 17 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE DJlllI2 • •• ••u••][I• 1/3/2005-1/31/2005 Status: FINAL Trade Date , Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base ~ Base IS CREDIT SUISSE FB REPO O 2.03 0% 01/13/2005 1/13/2005 100.0000 0.000 0.00 693.58 0.00 DD 01/12/0 5 1/13/2005 SEC ID: 99430E770 1/13/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO s LEHMAN CAT 1 REPO REPO 02.170% 1/14/2005 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 01/14/2005 DD 01/13/05 1/14/2005 SEC ID: 994300122 1/14/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 02.170% 1/14/2005 100.0000 0.000 0.00 741.42 0.00 01/14/2005 DD 01/13/05 1/14/2005 SEC ID: 994300122 1/14/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF0751 l 102: LIQUID OPER-PIMCO s LEHMAN CAT 2 REPO 02.180% 01/18/2005 DD 1/18/2005 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 01/ 14/05 1/18/2005 SEC ID: 99430H989 1/18/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 02.180% 01/18/2005 DD 1/18/2005 100.0000 0.000 0.00 2,979.33 0.00 01/ 14/05 1/18/2005 SEC ID: 99430H989 1/18/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO s CREDIT SUISSE FB REPO 02.240% 01/19/2005 1/19/2005 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 DD 01/18/05 1/19/2005 SEC ID: 994-30K370 1/19/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO IS CREDIT SUISSE FB REPO 02.240% 01/19/2005 1/19/2005 100.0000 0.000 0.00 765.33 0.00 DD 01/18/05 1/19/2005 SEC ID: 99430K370 1/19/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 18 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE DJDI:li:2 J JD ••••mm• 1/3/2005 -1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base s CREDIT SUISSE FB REPO 02.070% 01/20/2005 1/20/2005 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 DDOI/19/05 1/20/2005 SEC TD: 99430L998 1/20/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF0751 l 102: LIQUID OPER-PIMCO IS CREDIT SUISSE FB REPO 02.070% 01/20/2005 1/20/2005 100.0000 0.000 0.00 707.25 0.00 DDOl/19/05 1/20/2005 SEC ID: 99430L998 1/20/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF0751 l 102: LIQUID OPER-PIMCO s LEHMAN CAT 1 REPO REPO 02.120% 1/21/2005 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 01/21/2005 DD O 1/20 /05 1/21/2005 SEC ID: 99430N408 1/21/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 02.120% 1/21/2005 100.0000 0.000 0.00 724.33 0.00 01/21/2005 DD O 1/20 /05 1/21/2005 SEC ID: 99430N408 1/21/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO s LEHMAN CAT 1 REPO REPO 02.150% 1/24/2005 100.0000 -13,300,000.000 -13,300,000.00 13,300,000.00 0.00 01/24/2005 DD O 1/21 /05 1/24/2005 SEC ID: 99430P791 1/24/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 02.150% 1/24/2005 100.0000 0.000 0.00 2,382.92 0.00 01/24/2005 DD O 1/21 /05 1/24/2005 SEC ID: 99430P791 1/24/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO s LEHMAN CAT 1 REPO REPO 02.140% 1/25/2005 100.0000 -13,300,000.000 -13,300,000.00 13,300,000.00 0.00 01/25/2005 DD 01/24/05 1/25/2005 SEC ID: 99430R508 1/25/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 19 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE DOlllJl2 J J O OOCJOOJ •• 1/3/2005-1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IS LEHMAN CAT 1 REPO REPO 02.140% 1/25/2005 100.0000 0.000 0.00 790.61 0.00 01/25/2005 DD O 1/24 /05 1/25/2005 SEC ID: 99430R508 1/25/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO s CREDIT SUISSE FB REPO 02.150% 01/26/2005 1/26/2005 100.0000 -12,000,000.000 -12,000,000.00 12,000,000.00 0.00 DD 01 /25/05 1/26/2005 SEC ID: 99430S985 1/26/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO IS CREDIT SUISSE FB REPO 02.150%01/26/2005 1/26/2005 100.0000 0 .000 0.00 716.67 0.00 DD 01 /25/05 1/26/2005 SEC ID: 99430S985 1/26/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO s CREDIT SUISSE FB REPO 02.140% 01/27/2005 1/27/2005 100.0000 -13,000,000.000 -13,000,000.00 13,000,000.00 0.00 DD 01 /26/05 1/27/2005 SEC ID: 994300394 1/27/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO IS CREDIT SUISSE FB REPO 02.140% 01/27/2005 1/27/2005 100.0000 0.000 0.00 772.78 0 .00 DD 01/26/05 1/27/2005 SEC ID: 99430 U394 1/27/2005 BROKER: CREDIT SUISSE FIRST BOSTON CORP, NY OCSF07511102: LIQUID OPER-PIMCO s LEHMAN CAT 2 REPO 02.270% 01/28/2005 DD 1/28/2005 100.0000 -12,000,000.000 -12,000,000.00 12,000,000.00 0.00 01/27/05 1/28/2005 SEC ID: 99430V772 1/28/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 20 @ Transaction Detail Report ID: EWB009' Mellon Reported by Transaction Category Base Currency: USD OCS D-CONSOLI DATE DJl.ffil O OD ••OOO'JD• 1/3/2005-1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base .~ Base IS LEHMAN CAT 2 REPO 02.270% 01/28/2005 DD 1/28/2005 100.0000 0.000 0.00 756.67 0.00 01/27/05 1/28/2005 SEC ID: 99430V772 1/28/2005 BROKER: LEHMAN GOVf SECS INC, NY OCSF07511102 : LIQUID OPER-PIMCO s LEHMAN CAT 1 REPO REPO 02.290% 1/31/2005 100.0000 -12,000,000.000 -12,000,000.00 12,000,000.00 0.00 01/31/2005 DD O 1/28 /05 1/31/2005 SEC ID: 99430X414 1/31/2005 BROKER: LEHMAN GOVf SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 02.290% 1/31/2005 100.0000 0.000 0.00 2,290.00 0.00 01/31/2005 DD O 1/28 /05 1/31/2005 SEC ID: 99430X414 1/31/2005 BROKER: LEHMAN GOVf SECS INC, NY OCSF07511102: LIQUID OPER-PIMCO s DREYFUS TREASURY CASH MGMT 1/3/2005 1.0000 -12,298,308. 750 -12,298,308.75 12,298,308.75 0.00 SEC ID: 996085247 1/3/2005 OCSF07511102: LIQUID OPER-PIMCO 1/3/2005 s DREYFUS TREASURY CASH MGMT 1/4/2005 1.0000 -398,764.000 -398, 764.00 398,764.00 0.00 SEC ID: 996085247 1/4/2005 OCSF07522202: LONG TERM OPER-PIMCO 1/4/2005 s DREYFUS TREASURY CASH MGMT 1/18/2005 1.0000 -12,297 ,020.670 -12,297,020.67 12,297,020.67 0.00 SEC ID: 996085247 1/18/2005 OCSF07511102: LIQUID OPER-PIMCO 1/18/2005 s DREYFUS TREASURY CASH MGMT 1/20/2005 1.0000 -598,733.610 -598,733.61 598,733.61 0.00 SEC ID: 996085247 1/20/2005 OCSF07522202: LONG TERM OPER-PIMCO 1/20/2005 s DREYFUS TREASURY CASH MGMT 1/21/2005 1.0000 -91,515.330 -91,515.33 91,515.33 0.00 SEC ID: 996085247 1/21/2005 OCSF07522202: LONG TERM OPER-PIMCO 1/21/2005 s DREYFUS TREASURY CASH MGMT 1/27/2005 1.0000 -3,271,470.720 -3,271,470.72 3,271,470.72 0.00 SEC ID: 996085247 1/27/2005 OCSF07511102: LIQUID OPER-PIMCO 1/27/2005 2/7/2005 7:01:0lPM PST Workbench 21 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATEDJDll[2iJ iJ• ••••DJ•• 1/3/2005-1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description ' Reported Date Base Shares/Par Base > Base ' Base s DREYFUS TREASURY CASH MGMT 1/31/2005 1.0000 -6,446.400 -6,446.40 6,446.40 0.00 SEC ID: 996085247 1/31/2005 OCSF07511102: LIQUID OPER-PlMCO 1/31/2005 TOTAL CASH & CASH EQUIVALENTS U.S. DOLLAR: -355,262,259.480 -354, 773,013.77 354,965,843.04 25.45 TOTAL CASH & CASH EQUIVALENTS BASE: -355,262,259.480 -354, 773,013.77 354,965,843.04 25.45 FIXED INCOME SECURITIES U.S. DOLLAR s COMMIT TO PUR FNMA SF MTG 5.000% 1/11/2005 101.5586 -22,000,000.000 -22,367,812.50 22,342,890.63 -24,921.87 01/01/2020DD 01/01/05 1/19/2005 SEC ID: 01F050411 1/11/2005 BROKER: UBS SECURITIES LLC, STAMFORD OCSF07522202: LONG TERM OPER-PIMCO s COMMIT TO PUR FNMA SF MTG 5 .000% 1/12/2005 101.6406 -500,000.000 -508, 125.00 508,203.12 78.12 01/01/2020 DD O 1/01 /OS 1/19/2005 SEC ID: 01F050411 1/12/2005 BROKER: BARCLAYS CAPITAL INC, NEW YORK OCSF07522202: LONG TERM OPER-PIMCO s COMMIT TO PUR FNMA SF MTG 5.500% 1/10/2005 101.3906 -1,000,000.000 -1,016,210.94 1,013,906.25 -2,304.69 01/01/2035 DD O 1/01 /05 1/13/2005 SEC ID: 01FOS2615 1/10/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202: LONG TERM OPER-PIMCO s COMMIT TO PUR FNMA SF MTG 5.500% 1/10/2005 101.4375 -3,000,000.000 -3,048,632.81 3,043,125.00 -5,507.81 01/01/2035 DD O 1/01 /OS 1/13/2005 SEC ID: 01F052615 1/10/2005 BROKER: GOLDMAN SACHS & CO, NY OCSF07522202: LONG TERM OPER-PIMCO s US TREASURY NOTES 3.500% 12/15/2009 DD 1/18/2005 99.0781 -14,000,000.000 -13,953,610.30 13,870,937.50 -82,672.80 12/ 15/04 1/19/2005 SEC ID: 912828DE7 1/18/2005 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 22 Transaction Detail . . @ Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE DJIJDI:2 :J DD ••::JD•••• 1/3/2005-1/31/2005 Status: FINAL Trade Date .. Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IS US TREASURY NOTES 3.500% 12/15/2009 DD 1/18/2005 99.0781 0.000 0.00 47,115.38 0.00 12/ 15/04 1/19/2005 SEC ID: 912828DE7 BROKER: LEHMAN GOVT SECS INC, NY 1/18/2005 OCSF07522202: LONG TERM OPER-PIMCO s US TREASURY NOTES 3.500% 12/15/2009 DD 1/28/2005 99.2031 -14,000,000.000 -13,870,390.17 13,888,437.50 18,047.33 12/ 15/04 1/31/2005 SEC ID: 912828DE7 1/28/2005 BROKER UBS SECURITIES LLC, STAMFORD OCSF07522202: LONG TERM OPER-PIMCO IS USTREASURYNOTES 3.500%12/15/200900 1/28/2005 99.2031 0.000 0.00 63,269.23 0.00 12/15/04 1/31/2005 SEC ID: 912828DE7 1/28/2005 BROKER: UBS SECURITIES LLC, STAMFORD OCSF07522202: LONG TERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: -54,500,000.000 -54, 764,781.72 54,777,884.61 -97,281.72 TOTAL FIXED INCOME SECURITIES BASE: -54,500,000.000 -54, 764,781.72 54,777,884.61 -97,281.72 TOTAL SALES BASE: -409,762,259.480 -409,537,795.49 409,743,727.65 -97,256.27 PRINCIPAL PAYMENTS FIXED INCOME SECURITIES U.S. DOLLAR PD GNMA GTD REMIC TR 2000-9 FH VAR RT 1/16/2005 100.0000 -13,442.630 -13,442.63 13,442.63 0.00 02/16/2030 1/16/2005 SEC ID: 3837H4NX9 1/16/2005 OCSF07522202: LONG TERM OPER-PIMCO PD RESIDENTIAL ASSET 03-RSl l AIIB VAR RT 1/25/2005 100.0000 -40,685.460 -40,685.46 40,685.46 0.00 12/25/2033 DD 12/30/03 1/25/2005 SEC ID: 760985K83 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 23 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE DJDIJC2 CJ CJ D oo::m•::JD• 1/3/2005-1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: -54, 128.090 -54,128.09 54,128.09 0 .00 TOTAL FIXED INCOME SECURITIES BASE: -54,128.090 -54,128.09 54,128.09 0.00 TOTAL PRINCIPAL PAYMENTS BASE: -54, 128.090 -54,128.09 54,128.09 0.00 MATURITIES CASH & CASH EQUIVALENTS U.S. DOLLAR MT FEDERAL HOME LN BK CONS DISC MAT 1/3/2005 100.0000 -10,900,000.000 -10,898,864.58 10,898,864.58 0.00 01/03/2005 1/3/2005 SEC ID: 313385ACO 1/3/2005 OCSF07522202: LONG TERM OPER-PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 1/5/2005 100.0000 -10, 100,000.000 -10,099,396.81 10,099,396.81 0.00 01/05/2005 1/5/2005 SEC ID: 313385AE6 1/5/2005 OCSF07522202: LONG TERM OPER-PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 1/6/2005 100.0000 -1,300,000.000 -1,299,921.64 1,299,921.64 0.00 01/06/2005 1/6/2005 SEC ID: 313385AF3 1/6/2005 OCSF07522202: LONG TERM OPER-PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 1/2 1/2005 100.0000 -1,000,000.000 -995,215.00 995,215.00 0.00 01/21/2005 1/21/2005 SEC ID: 313385AW6 1/2 1/2005 OCSF07511102: LIQUID OPER-PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 1/2 1/2005 100.0000 -700,000.000 -699,958.39 699,958.39 0.00 01/21/2005 1/21/2005 SEC ID: 313385AW6 1/21/2005 OCSr07522202: LONG TERM OPER-PIMCO TOTAL CASH & CASH EQUIVALENTS U.S. DOLLAR: -24,000,000.000 -23,993,356.42 23,993,356.42 0 .00 2/7/2005 7:01 :0lPM PST Workbench 24 Transaction Detail @ Mellon Reported by Transaction Category OCSD-CONSOLIDATE DJIIDI2 J CJD ••~••JD• 1/3/2005-1/31/2005 Trade Date Tran Settle Date Type Description Reported Date TOTAL CASH & CASH EQUIVALENTS BASE: TOTAL MATURITIES BASE: MISCELLANEOUS ACTMTY FIXED INCOME SECURITIES U.S. DOLLAR SW REPS FACTOR ADJUSTMENT US TREASURY 1/3/2005 INFLATION INDEX NT 1/3/2005 SEC ID: 9128272M3 1/3/2005 OCSF07522202: LONG TERM OPER-PIMCO SW REPS FACTOR ADJUSTMENT US TREASURY 1/3/2005 INFLATION INDEX NT 1/3/2005 SEC ID: 9128273T7 1/3/2005 OCSF07522202: LONG TERM OPER-PIMCO SW REPS FACTOR ADJUSTMENT US TREASURY 1/3/2005 INFLATION LNUEX NT 1/3/2005 SEC ID: 9128274Y5 1/3/2005 OCSF07522202 : LONG TERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: TOTAL FIXED INCOME SECURITIES BASE: TOTAL MISCELLANEOUS ACTMTY BASE: INTEREST CASH & CASH EQUIVALENTS U.S. DOLLAR 2/7/2005 7:01:0lPM PST Price Base Shares/Par -24,000,000.000 -24,000,000.000 -23,940.000 -5,010.000 -21,450.000 -50,400.000 -50,400.000 -50,400.000 25 Cost Base -23,993,356.42 -23,993,356.42 -2 1,221.45 -5,446.87 -23,751.06 -50,419.38 -50,419.38 -50,419.38 . Report ID: EWB009 Base Currency: USD Status: FINAL Amount Net Gain/Loss Base Base 23,993,356.42 0.00 23,993,356.42 0.00 0.00 -21,221.45 0.00 -5,446.87 0.00 -23,751.06 0.00 -50,419.38 0.00 -50,419.38 0.00 -50,419.38 Workbench @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE DJI[[2 J u• •••••::JD• 1/3/2005-1/31/2005 Status: FINAL Trade Date l Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT FEDERAL HOME LN BK CONS DISC MAT 1/3/2005 10,900,000.000 1,135.42 1,135.42 0.00 01/03/2005 1/3/2005 SEC ID: 313385ACO OCSF07522202: LONG TERM OPER-PIMCO 1/3/2005 IT FEDERAL HOME LN BK CONS DISC N MAT 1/5/2005 10,100,000.000 603.19 603.19 0.00 01/05/2005 1/5/2005 SEC ID: 313385AE6 OCSF07522202: LONG TERM OPER-PIMCO 1/5/2005 IT FEDERAL HOME LN BK CONS DISC N MAT 1/6/2005 1,300,000.000 78.36 78.36 0.00 01/06/2005 1/6/2005 SEC ID: 313385AF3 1/6/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 1/21/2005 1,000,000.000 4,785.00 4,785.00 0.00 01/21/2005 1/21/2005 SEC ID: 313385AW6 1/21/2005 OCSF07511102: LIQUID OPER-PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 1/21/2005 700,000.000 41.61 4 1.61 0.00 01/21/2005 1/21/2005 SEC ID: 313385AW6 1/21/2005 OCSF07522202: LONG TERM OPER-PIMCO IT UBS AG STAMFORD BRH INSTL C/D VAR RT 1/4/2005 10,000,000.000 48,786.11 48,786.11 0.00 07/05/2005 DD 07/02/04 1/4/2005 SEC ID: 90261GE47 1/4/2005 OCSF07522202: LONG TERM OPER-PIMCO cw SHORT TERM FDS INT ADJ NET OF 1/31/2005 0.000 -8,736.40 -8,736.40 0.00 OVERNIGHT INTEREST 1/31/2005 SEC ID: 990000PJ4 1/31/2005 OCSF07511102: LIQUID OPER-PIMCO IT DREYFUS TREASURY CASH MGMT 1/5/2005 0.000 970.93 970.93 0.00 SEC ID: 996085247 1/1/2005 OCSF07511102 : LIQUID OPER-PIMCO 1/5/2005 IT DREYFUS TREASURY CASH MGMT 1/5/2005 0.000 1,698.08 1,698.08 0.00 SEC ID: 996085247 1/1/2005 OCSF07522202: LONG TERM OPER-PIMCO 1/5/2005 2/7/2005 7:01:0lPM PST Workbench 26 @ Transaction Detail EWB009° . Report ID: Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DA TE DJI][][2 J JO OOCIODCJDO 1/3/2005-1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base .. Base Base IT BSDT-LATE MONEY DEPOSIT ACCT 1/3/2005 0.000 51.25 51.25 0.00 SEC ID: 996087094 1/1/2005 OCSF07522202: LONG TERM OPER-PIMCO 1/3/2005 TOTAL CASH & CASH EQUIVALENTS U.S. DOLLAR: 34,000,000.000 49,413.55 49,413.55 0.00 TOTAL CASH & CASH EQUIVALENTS BASE: 34,000,000.000 49,413.55 49,413.55 0.00 FIXED INCOME SECURITIES U.S. DOLLAR IT WMP/HUNTOON PAIGE #000-11150 7.500% 1/28/2005 842.300 5,851.60 5,851.60 0.00 12/01/2030 DD 10/21 /99 1/1/2005 SEC ID: 302998GE3 1/28/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FHLMC MULTICLASS MTG SER E3 A VAR RT 1/18/2005 17,584.400 2,566.70 2,566.70 0.00 08/15/2032 DD 12/01 /97 12/1/2004 SEC ID: 3133TCE95 1/18/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FHLMC GROUP #78-6064 6.384% 01/01/2028 1/18/2005 2,015.380 171.25 171.25 0.00 DD 12/01/97 12/1/2004 SEC ID: 31348SWZ3 1/18/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0254510 5.000% 11/01/2017 1/25/2005 13,726.700 2,742.12 2,742.12 0.00 DD 10/01/02 1/1/2005 SEC ID: 31371KVB4 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0254631 5.000% 02/01/2018 1/25/2005 2,690.670 589.73 589.73 0.00 DD 01 /01/03 1/1/2005 SEC ID: 31371KY47 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0254760 5.000% 06/01/2018 1/25/2005 2,528.320 526.87 526.87 0.00 DD 05/01/03 1/1/2005 SEC ID: 31371K5V9 1/25/2005 OCSF0752 2202: LONG TERM OPER-PIMCO 2/7/2005 7:01 :0lPM PST Workbench 27 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCS D-CONSOLI DATE DJIIl2 J J O O•OOOJO!J 1/3/2005-1/31/2005 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 #0254866 5.000% 09/01/2018 1/25/2005 1,118.320 238.64 238.64 0.00 DD 08/01/03 1/1/2005 SEC ID: 31371 LC83 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0254953 5.000% 11/01/2018 1/25/2005 5,823.150 1,270.50 1,270.50 0.00 DD 10/01/03 1/1/2005 SEC ID: 31371 LE21 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0254987 5.000% 12/01/2018 1/25/2005 17,245.580 3,432.41 3,432.41 0.00 DD 11/01/03 1/1/2005 SEC ID: 31371 LF46 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0323980 6.000% 04/01/2014 1/25/2005 4,189.490 721.45 721.45 0.00 DD 09/01/99 1/1/2005 SEC ID: 31374T2MO 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0357328 5.000% 01/01/2018 1/25/2005 754.820 100.76 100.76 0.00 DD 01/01/03 1/1/2005 SEC ID: 31376J4M8 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0357430 5.000% 09/01/2018 1/25/2005 17,255.560 5,223.75 5,223.75 0.00 DD 09/01/03 1/1/2005 SEC ID: 31376KA71 1/25/2005 OCSF07522202 : LONG TERM OPER-PIMCO IT FNMA POOL #0456482 6.000% 02/01/2014 1/25/2005 3,654.810 207.22 207.22 0.00 DD 02/01/99 1/1/2005 SEC ID: 31381CCT2 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0509649 6.000% 09/01/2014 1/25/2005 782.940 497.93 497.93 0.00 OD 09/01/99 1/1/2005 SEC ID: 31383QEWO 1/25/2005 OCSF07522202: LONG TERM OPER -PIMCO IT FNMA POOL#0535451 6.000%06/01/2015 1/25/2005 2,874.290 561.24 561.24 0.00 DD 07 /01/00 1/1/2005 SEC ID: 31384 VZQ8 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 28 Transaction Detail . . @ Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE DJIJI[2 0 OD •mm•••• 1/3/2005-1/31/2005 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#0555363 5.000%04/01/2018 1/25/2005 5,982.070 1,261.18 1,261.18 0.00 DD 03/01/03 1/1/2005 SEC ID: 31385W5Yl 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL#0555453 5.000%05/01/2018 1/25/2005 545.440 131.06 131.06 0.00 DD 04/01/03 1/1/2005 SEC ID: 31385XBW6 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0555545 5.000% 06/01/2018 1/25/2005 4,518.260 1,046.16 1,046.16 0.00 DD 05/01/03 1/1/2005 SEC ID: 31385XES2 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0555621 5.000% 07/01/2018 1/25/2005 15,788.060 3,616.96 3,616.96 0.00 DD 06/01/03 1/1/2005 SEC ID: 31385XG68 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0681309 5.000% 02/01/2018 1/25/2005 5,998.320 1,946.00 1,946.00 0.00 DD 02/01/03 1/1/2005 SEC ID: 31391Y3S4 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0681334 5.000% 02/01/2018 1/25/2005 1,122.080 237.17 237.17 0.00 DD 01/01/03 1/1/2005 SEC ID: 31391 Y4Tl 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA GTD REMIC P /T 02-76 PD 5.000% 1/25/2005 164,643.850 1,130.71 1,130.71 0.00 08/25/2022 DD 10/01 /02 1/1/2005 SEC ID: 31392FKF3 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0684908 5.000% 06/01/2018 1/25/2005 2,605.510 1,280.72 1,280.72 0.00 DD 05/01/03 1/1/2005 SEC ID: 31400D3Rl 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0685200 5.000% 03/01/2018 1/25/2005 2,444.790 696.65 696.65 0.00 DD 03/01/03 1/1/2005 SEC ID: 31400EGH7 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 29 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD ocs D-CONSOLIDATE D:m:2 '.] ::m ••u•D'JOO 1/3/2005-1/31/2005 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 #0685665 5.000%02/01/2018 1/25/2005 556.850 120.20 120.20 0.00 DD 02/01/03 1/1/2005 SEC ID: 31400EW22 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL#0686318 5.000%03/01/2018 1/25/2005 4,570.600 1,060.79 1,060.79 0.00 DD 03/01/03 1/1/2005 SEC ID: 31400FPB7 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0688739 5.000%06/01/2018 1/25/2005 1,621.620 418.56 418.56 0.00 DD 06/01/03 1/1/2005 SEC ID: 31400JEL9 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0689859 5.000% 05/01/2018 1/25/2005 390.940 347.53 347.53 0 .00 DD 05/01/03 1/1/2005 SEC ID: 31400KMG8 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0693834 5.000% 03/01/2018 1/25/2005 9,055.950 2,318.18 2,318.18 0.00 DD 03/01/03 1/1/2005 SEC ID: 31400PY74 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0695852 5.000% 05/01/2018 1/25/2005 4,816.130 828.47 828.47 0.00 DD 05/01/03 1/1/2005 SEC ID: 31400SBVO 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL#0695889 5.000%05/01/2018 1/25/2005 14,213.260 2,799.93 2 ,799.93 0.00 DD 05/01/03 1/1/2005 SEC ID: 31400SC23 1/25/2005 OCSF07522202 : LONG TERM OPER -PIMCO IT FNMA POOL #0697026 5.000% 05/01/2018 1/25/2005 597.650 86.20 86.20 0 .00 DD 04/01/03 1/1/2005 SEC ID: 31400TLF2 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL#0702210 5.000%05/01/2018 1/25/2005 1,060.330 854.08 854.08 0.00 DD 05/01/03 1/1/2005 SEC ID: 31401ADP9 1/25/2005 OCSF07522202 : LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 30 Transaction Detail . @ Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE DJ[][[2 '.J '.JD DrJ'.J ••••• 1/3/2005-1/31/2005 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 #0702328 5.000%05/01/2018 1/25/2005 2,704.870 511.53 511.53 0.00 DD 04/01/03 1/1/2005 SEC ID: 31401AHD2 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0709148 5.000% 06/01/2018 1/25/2005 5,259.560 1,064.50 1,064.50 0.00 DD 06/01/03 1/1/2005 SEC ID: 31401HZM7 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0709360 5.000% 07/01/2018 1/25/2005 14,773.520 2,407.25 2,407.25 0.00 DD 06/01/03 1/1/2005 SEC ID: 31401JB56 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0709826 5.000% 06/01/2018 1/25/2005 1,417.880 414.23 414.23 0.00 DD 06/01/03 1/1/2005 SEC ID: 31401JSP4 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0709917 5.000% 06/01/2018 1/25/2005 3,714.270 861.34 861.34 0.00 DD 06/01/03 1/1/2005 SEC ID: 31401JVJ4 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0709963 5.000% 06/01/2018 1/25/2005 77.350 74.88 74.88 0.00 DD 06/01/03 1/1/2005 SEC ID: 31401JWYO 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0710235 5.000% 06/01/2018 1/25/2005 12,550.310 2,279.50 2,279.50 0.00 DD 06/01/03 1/1/2005 SEC ID: 31401KBC8 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0713344 5.000% 06/01/2018 1/25/2005 73.860 62.54 62.54 0.00 DD 06/01/03 1/1/2005 SEC ID: 31401 NP52 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0713365 5.000% 07/01/2018 1/25/2005 1,062.690 985.96 985.96 0.00 DD 07 /01/03 1/1/2005 SEC ID: 31401NQS1 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 31 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE 0']]]]12 J JD•••••••• 1/3/2005-1/31/2005 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#0720319 5.000%07/01/2018 1/25/2005 27,132.970 2,856.98 2,856.98 0 .00 DD 07 /01/03 1/1/2005 SEC ID: 31401 WG45 OCSF07522202: LONG TERM OPER-PIMCO 1/25/2005 IT FNMA POOL#0720369 5.000%06/01/2018 1/25/2005 20,592.060 8,269.96 8,269.96 0.00 DD 06/01/03 1/1/2005 SEC ID: 31401 WJNO 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL#0721629 5.000%07/01/2018 1/25/2005 1,900.700 1,155.77 1,155.77 0.00 DD 06/01/03 1/1/2005 SEC ID: 31401XVW4 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0723487 5.000% 06/01/2018 1/25/2005 966.240 959.87 959.87 0.00 DD 06/01/03 1/1/2005 SEC ID: 31402AXQ4 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0729601 5.000% 07/01/2018 1/25/2005 6,758.880 1,556.96 1,556.96 0.00 DD 07 /01/03 1/1/2005 SEC ID: 31402HRW3 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0732873 5.000% 11/01/2018 1/25/2005 136.110 137.25 137.25 0.00 DD 10/01/03 1/1/2005 SEC ID: 31402MFN5 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0737130 5.000% 10/01/2018 1/25/2005 15,024.220 2,493.05 2,493.05 0.00 DD 10/01/03 1/1/2005 SEC ID: 31402S4P9 1/25/2005 OCSF07522202 : LONGTERM OPER-PIMCO IT FNMA POOL #0738211 5.000% 10/01/2018 1/25/2005 6,012.970 2,051.93 2,051.93 0.00 DD 10/01/03 1/1/2005 SEC ID: 31402UDQ2 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL#0738487 5.000% 10/01/2018 1/25/2005 4,894.420 740.10 740.10 0.00 DD 10/01/03 1/1/2005 SEC ID: 31402UNC2 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01 :0lPM PST Workbench 32 . , @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD 0 CS D-CO NS O LID ATE DJ[][[2 •::JO ••••• J •• 1/3/2005-1/31/2005 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 #0740471 5.000% 10/01/2018 1/25/2005 3,095.470 2,772.24 2,772.24 0.00 DD 10/01/03 1/1/2005 SEC ID: 31402Wf40 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL#0740748 5.000% 10/01/2018 1/25/2005 16,403.410 3,034.24 3,034.24 0.00 DD 11 /01/03 1/1/2005 SEC ID: 31402W5H7 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0743868 5.000% 11/01/2018 1/25/2005 543.560 147.21 147.21 0.00 DD 10/01/03 1/1/2005 SEC ID: 31403BMR1 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0744008 5.000% 07/01/2018 1/25/2005 27,777.130 3,935.45 3,935.45 0.00 DD 09/01/03 1/1/2005 SEC ID: 31403BR54 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0744316 5.000% 09/01/2018 1/25/2005 1,147.210 610.75 610.75 0.00 DD 09/01/03 1/1/2005 SEC ID: 3140383Z4 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL#0747914 5.000% 11/01/2018 1/25/2005 19,073.410 1,346.31 1,346.31 0.00 DD 11/01/03 1/1/2005 SEC ID: 31403F3XO 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL#0748400 5.000%08/01/2018 1/25/2005 5,286.680 780.31 780.31 0.00 DD 09/01/03 1/1/2005 SEC ID: 31403GNR9 1/25/2005 OCSF0752 2202: LONG TERM OPER-PIMCO IT FNMA POOL #0748899 5.000% 12/01/2018 1/25/2005 13,789.070 3,772.60 3,772.60 0.00 DD 11/01/03 1/1/2005 SEC ID: 31403G7LO 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #07503 77 5.000% 11 /01/2018 1/25/2005 41,183.180 8,437.92 8,437.92 0.00 DD 11 /01/03 1/1/2005 SEC ID: 31403JUA2 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 33 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE DJ[][][2 :J OD ••'J••J •• 1/3/2005-1/31/2005 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 #0750380 5.000% 11/01/2018 1/25/2005 79,896.440 7,474.80 7,474.80 0.00 DD 11 /01/03 1/1/2005 SEC ID: 31403JUD6 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0750445 5.000% 11/01/2018 1/25/2005 707.140 691.86 691.86 0.00 DD 11 /01/03 1/1/2005 SEC ID: 31403JWE2 1/25/2005 OCSF07522202: LONG TERM OPER -PIMCO IT FNMA POOL #0751960 5.000% 12/01/2018 1/25/2005 4,503.610 3,152.85 3,152.85 0.00 DD 11 /01/03 1/1/2005 SEC ID: 31403LMH1 1/25/2005 OCSF07522202 : LONG TERM OPER-PIMCO IT FNMA POOL #0753425 5.000% 11/01/2018 1/25/2005 18,979.870 3,369.42 3,369.42 0.00 DD 11 /01/03 1/1/2005 SEC ID: 31403NA23 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL #0755165 5.000% 12/01/2018 1/25/2005 7,399.750 2 ,423.83 2,423.83 0.00 DD 11 /01/03 1/1/2005 SEC ID: 31403Q6A3 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT FNMA POOL#0756372 5.000% 11/01/2018 1/25/2005 4,427.540 3,740.06 3,740.06 0.00 DD 11/01/03 1/1/2005 SEC ID: 31403SJR8 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT GNMA POOL#0421389 6.500% 04/15/2026 1/18/2005 328.400 51.54 51.54 0.00 DD 04/01/96 1/1/2005 SEC ID: 36206UC23 1/18/2005 OCSF07522202: LONG TERM OPER-PJMCO IT GNMA POOL #0449851 6. 500% 01/15/2028 1/18/2005 4,408.470 107.42 107.42 0.00 DD 01/01/98 1/1/2005 SEC ID: 36208FWLO 1/18/2005 OCSF07522202: LONG TERM OPER-PIMCO IT GNMA POOL#0466845 6.500% 06/15/2028 1/18/2005 46.500 177.19 177.19 0.00 DD 06/01/98 1/1/2005 SEC ID: 36209BTA6 1/18/2005 OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01 :0lPM PST Workbench 34 @ Transaction Detail . . Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE DJI][[2 J JO ••JO•J •• 1/3/2005-1/31/2005 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#0468052 6.500% 07/15/2028 1/18/2005 215.160 600.60 600.60 0.00 DD 07 /01/98 1/1/2005 SEC ID: 36209C5M4 1/18/2005 OCSF07522202: LONG TERM OPER-PIMCO IT GNMA POOL #0476041 6.500% 06/15/2028 1/18/2005 240.290 743.49 743.49 0.00 DD 06/01/98 1/1/2005 SEC ID: 36209MZE7 OCSF07522202: LONG TERM OPER-PIMCO 1/18/2005 IT GNMA POOL#0478626 6.500%01/15/2029 1/18/2005 182.680 653.39 653.39 0.00 DD 01 /01/99 1/1/2005 SEC ID: 36209QVT9 1/18/2005 OCSF07522202: LONG TERM OPER-PIMCO IT GNMA POOL#0480598 6.500% 10/15/2028 1/18/2005 39.240 155.86 155.86 0.00 DD 10/01/98 1/1/2005 SEC ID: 36209S3F6 1/18/2005 OCSF07522202: LONG TERM OPER-PIMCO IT GNMA POOL#0512235 6.500% 11/15/2029 1/18/2005 12.590 45.46 45.46 0.00 DD 11/01/99 1/1/2005 SEC ID: 36211GBC6 1/18/2005 OCSF07522202: LONG TERM OPER-PIMCO IT GNMA POOL #0514326 6.500% 07/15/2029 1/18/2005 6,177.680 574.93 574.93 0.00 DD 07 /01/99 1/1/2005 SEC ID: 36211JLF2 1/18/2005 OCSF07522202: LONG TERM OPER-PIMCO IT GNMA II POOL #0080023 VAR RT 12/20/2026 1/20/2005 5,554.070 630.19 630.19 0.00 DD 12/01/96 1/1/2005 SEC ID: 36225CAZ9 1/20/2005 OCSF07522202: LONG TERM OPER-PIMCO IT GNMA II POOL #080088M 7.375% 06/20/2027 1/20/2005 12,321.160 583.97 583.97 0.00 DD 06/01/97 1/1/2005 SEC ID: 36225CC20 1/20/2005 OCSF07522202: LONG TERM OPER-PIMCO IT GNMA II POOL #0080395 VAR RT 04/20/2030 1/20/2005 5,929.070 504.73 504.73 0.00 DD 04/01/00 1/1/2005 SEC ID: 36225CNM4 1/20/2005 OCSF07522202: LONG TERM OPER-PIMCO 2/7/2005 7:01:0lPM PST Workbench 35 @ Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATEDJ[][TC2 DOD DD'JDOODO 1/3/2005-1/31/2005 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 #080408X VAR RT 05/20/2030 1/20/2005 47,664.170 4,564.13 4,564.13 0.00 DD 05/01/00 1/1/2005 SEC ID: 36225CN28 1/20/2005 OCSF07522202: LONG TERM OPER-PIMCO IT GNMA II POOL#0080965 VAR RT 07/20/2034 1/20/2005 19,506.660 3,966.63 3,966.63 0.00 DD 07 /01/04 1/1/2005 SEC ID: 36225DCB8 1/20/2005 OCSF07522202 : LONG TERM OPER-PIMCO IT GOLDMAN SACHS GRP MTN #TR00194 VAR RT 1/27/2005 3,500,000.000 20,393.33 20,393.33 0.00 10/27/2006DD 10/29/03 1/27/2005 SEC ID: 38141&1B6 1/27/2005 OCSF07522202: LONG TERM OPER-PIMCO IT GOLDMAN SACHS GRP MTN #TR00207 VAR RT 1/25/2005 800,000.000 4,914.00 4,914.00 0.00 07/23/2009 DD 07/23/04 1/25/2005 SEC ID: 38141EJQ3 1/25/2005 OCSF07522202: LONGTERM OPER-PIMCO IT GNMA GTD REMIC TR 2000-9 FH VAR RT 1/19/2005 13,442.630 1,206.51 1,206.51 0.00 02/16/2030 1/16/2005 SEC ID: 3837H4NX9 1/19/2005 OCSF07522202: LONG TERM OPER-PIMCO IT MORGAN STANLEY NT 3.875% 01/15/2009 DD 1/18/2005 3,200,000.000 62,000.00 62,000.00 0.00 01/13/04 1/15/2005 SEC ID: 617468ALO 1/18/2005 OCSF0752 2202: LONG TERM OPER-PIMCO IT RESIDENTIAL ASSET 03-RSl 1 AIIB VAR RT 1/25/2005 40,685.460 1,417.06 1,417.06 0.00 12/25/2033 DD 12/30 /03 1/25/2005 SEC ID: 760985K83 1/25/2005 OCSF07522202: LONG TERM OPER-PIMCO IT US TREASURY INFLATION INDEX NT 3.375% 1/18/2005 14,000,000.000 284,726.14 284,726.14 0.00 01/15/2007 DD O 1/ 15 /97 1/15/2005 SEC ID: 9128272M3 1/18/2005 OCSF07522202: LONG TERM OPER-PIMCO CD US TREASURY INFLATION INDEX NT 3.375% 1/31/2005 0.000 11,480.00 11,480.00 0.00 01/15/2007 DD O 1/ 15 /97 SEC ID: 9128272M3 OCSF07522202: LONG TERM OPER-PJMCO 1/31/2005 2/7/2005 7:01:0lPM PST Workbench 36 Transaction Detail EWB009 . . @ Report ID: Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE DJDDI:2 ••••••••::mo 1/3/2005-1/31/2005 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par 'l Base Base Base IT US TREASURY INFLATION INDEX NT 3.625% 1/18/2005 3,000,000.000 64,266.90 64,266.90 0.00 01/15/2008 DD O 1/ 15/98 1/15/2005 SEC ID: 9128273T7 1/18/2005 OCSF07522202: LONG TERM OPER-PIMCO CD US TREASURY INFLATION INDEX NT 3.625% 1/31/2005 0.000 2,400.00 2,400.00 0.00 01/15/2008 DD O 1/ 15 /98 SEC ID: 9128273T7 1/31/2005 OCSF07522202: LONG TERM OPER-PlMCO IT US TREASURY INFLATION INDEX NT 3.875% 1/18/2005 13,000,000.000 293,258.06 293,258.06 0.00 01/15/2009 DD O 1/ 15 /99 1/15/2005 SEC ID: 9128274Y5 1/18/2005 OCSF07522202: LONG TERM OPER-PIMCO CD US TREASURY INFLATION INDEX NT 3.875% 1/31/2005 0.000 10,140.00 10,140.00 0.00 01/15/2009 DD O 1/ 15 /99 SEC ID: 9128274Y5 1/31/2005 OCSF07522202: LONG TERM OPER-PIMCO IT USTREASURYNOTES 2.750%07/31/200600 1/31/2005 49,000,000.000 673,750.00 673,750.00 0.00 07/31/04 1/31/2005 SEC ID : 912828CQ1 1/31/2005 OCSF07522202: LONG TERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: 87,359,639.020 1,562,767.70 1,562,767.70 o.oo TOTAL FIXED INCOME SECURITIES BASE: 87,359,639.020 1,562,767.70 1,562,767.70 0.00 TOTAL INTEREST BASE: 121,359,639.020 1,612,181.25 1,612,181.25 0.00 TOTAL TRANSACTIONS: 94,085,649.930 -25,890,588.64 29,123,733.15 -147,675.65 2/7/2005 7:01:0lPM PST Workbench 37 FAHR COMMITTEE - AGENDA REPORT Orange County Sanitation District FROM: Gary G. Streed, Director of Finance Originator: Michael D. White, Controller Meeting Date 02/09/05 Item Number FAHR0S-02 SUBJECT: CERTIFICATES OF PARTICIPATION (COP) MONTHLY REPORT- JANUARY 2005 GENERAL MANAGER'S RECOMMENDATION To Bd. of Dir. Item Number Receive and file Certificates of Participation (COP) Monthly Report for the month of January 2005. SUMMARY The District began issuing Certificates of Participation (COPs) on a variable interest rate basis in 1990. These variable rate COPs were a part of our long-term financing plan which also included some more traditional fixed rate borrowing. In 1992 and 1993, some of the fixed rate COPs were refunded and replaced with synthetic-fixed rate COPs. These are variable interest rate COPs that are also subject to a long-term fixed-rate interest exchange agreement (SWAP). The SWAP provides the maximum interest rate to be paid by the District, and is less costly than traditional fixed rate borrowing. In August 2000, the entire financing program was restructured and modernized to incorporate and take advantage of the consolidation of District books of account and revenue structure. This process has reduced the number of COP issues from five to three; 1992 Refunding COPs, 1993 Refunding COPs and 2000 Refunding COPs. The 2000 COPs can be divided into Series A and Series B, if additional remarketing agents are desired. In August 2003, the District issued $280 million of fixed rate COPs, Series 2003, that have varying coupon rates that are matched against the varying maturity dates. The true interest cost for the entire issue is 5.15 percent. Variable interest rate COPs can be put back on the market by the buyer each day. When this happens, they must be remarketed or sold to another buyer. This process, called remarketing, is generally provided by a municipal bond underwriter. The remarketing agent sets the interest rate they believe is required to sell the COPs. Some issuers believe that having more than one remarketing agent promotes competition and results in lower interest costs. Staff has monitored variable interest rate issues of other agencies since the inception of our program. The attached charts are described in the "Additional Information" section of this agenda report. They are provided monthly to compare our actual interest rates to a composite index, and to other selected issuers of similar credit quality, and with COP issues of similar amounts. Many variables affect interest rates, but staff expects our rates to be among the lowest. PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY NIA BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. ~ Not applicable (information item) ADDITIONAL INFORMATION No report for December 2004 was issued because there was no FAHR meeting held in January 2005. The attached graphs that provide information through January 2005, also contain the information for December 2004. 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 compe.site index rate, which represents the average rate of six similar variable rate daily reset borrowings. The third bar chart entitled, "COP Rate History, C.o'mparison of Highest & kowest 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 CQPs. 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 payme.nts calculated for a standard $100 million par ~mourit, 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 OOP Rate History Report 2. Graph -Comparative Daily COP Rate History Report 3. Graph -COP Daily Rate Hist0ry, Comparison of Highest & Lowest Rates 4. Tabular -COP Rate Hist0ry, Com1?arison of Monthly Averages GGS:MW:lc C:\Documents and Settings\Ow-Yeang\Local Setlings\Temporary Internet Files\OLK7AA\Agenda Report_COP020905 (2),DOC Revised: 06/04/03 Page2 .. DAILY COP RA TE HISTORY COMPARISON OF MONTHLY AVERAGES FEB 2004 -JAN 2005 OCSD $218.6M $46M Series 2000 Series 93 Ref Composite Paine Webber PaineWebber Feb-04 0.87 0.87 Mar-04 0.94 0.94 Apr-04 1.01 1.01 May-04 1.05 1.05 Jun-04 1.02 1.02 Jul-04 0.99 0.99 Aug-04 1.15 1.15 Sep-04 1.34 1.34 Oct-04 1.67 1.67 Nov-04 1.52 1.52 Dec-04 1.55 1.55 Jan-05 1.70 1.70 AVERAGE 1.23% I 1.23% ESTIMATED ANNUAL INTEREST PAYMENTS PER $100M PAR A$ 1,234,167 I $ 1,234,167 I$ * FOOTNOTE Composite index consists of the following COP transactions: . IRWD, Series 86-COP, 88, 95, $106.1 M, Citigroup . IRWD, Series C-Ref93-B, 85-B, $62.1M, Lehman Brothers . IRWD, Series 91, 93, 85, $93.0M, PaineWebber . IRWD, Series 89, C-Ref 93-A, C-Ref 95, $70.9M, Merrill Lynch Index* 0.86 0.92 1.00 1.03 1.00 0.97 1.13 1.32 1.65 1.51 1.54 1.69 1.22% 1,218,333 . Western Riverside Co. Reg. Wastewater Auth., Series 96, $25.4M, PaineWebber . Orange Co., Irvine Coast Asst. Dist. 88-1, $94.5M, J.P. Morgan