Fairfield-Su Suisun S n Sewer D District 1010 Chadbourne Road - - PDF document

Fairfield-Su

Suisun S n Sewer D District

1010 Chadbourne Road • Fairfield, California 94534 • (707) 429-8930 • www.fssd.com Gregory G. Baatrup, General Manager The Fairfield-Suisun Sewer District will provide reasonable disability-related modification or accommodation to a person with a disability who requires a modification or accommodation in order to participate in the meeting of the Board of Directors. Please contact us at (707) 429-8930 at least 48 hours before the meeting if you require such modification or accommodation. Documents that are disclosable public records required to be made available under California Government Code Section 54957.5 (b) (1) and (2) are available to the public for inspection at no charge during business hours at our administrative offices located at the above address. Members of the public may speak on any matter within the jurisdiction of the Fairfield-Suisun Sewer District by filling out a speaker’s request card, available on the table adjacent to the entrance to the board meeting room, and submitting the card to the District Clerk. Comments not listed on the agenda will be taken under Public Comments. Comments on matters appearing on the agenda will be taken during consideration of the item.

Teleconference Notice: Director Jane Day will be participating from a teleconference location at 301 Morgan Street, Suisun City, CA 94585.

Board of Directors Meeting Agenda

Meeting Date: Monday, April 22, 2019 Meeting Place: 1010 Chadbourne Road Fairfield, California Meeting Time: 6:00 p.m.

• 1. Roll Call
• 2. Pledge of Allegiance
• 3. Public Comments
• 4. Director Comments
• 5. General Manager Report
• 6. Consent Calendar Page

(a) Approve Minutes of Meeting of March 25, 2019 ................................................................. 2 (b) Authorize General Manager to Execute a Professional Services Agreement for Auditing Services to Cropper Accountancy Corporation ................................................................. 5

• 7. Discussion Item

(a) Receive Update on AB 530 (verbal) (b) Proposal to Create and Fund Budget Item for City Sewer Replacement .............................. 7 (c) Receive Report from Ad Hoc Committee on General Manager Options ............................ 10 (d) Consider Executive Committee Recommendation for Budget Workshop on June 1, 2019 (verbal)

• 8. Action Items:
• 9. Information Items

(a) Board Calendar ................................................................................................................... 11 (b) Quarterly Investment Report .............................................................................................. 14

• - End of Agenda --

Bo Board rd o

• f D

Dire rectors

Rick Vaccaro, President Lori Wilson, Vice President Anthony Adams Pam Bertani Jane Day Catherine Moy Harry Price Michael Segala Chuck Timm Wanda Williams

Fairfield-Suisun Sewer District

minutes

1010 C ha d b ou rn e Roa d F air fie l d, C A Te l ep h one (707) 429- 8930

• www. fssd . com

Date: March 25, 2019 Meeting Place: 1010 Chadbourne Road, Fairfield, California Meeting Time: 6:01 p.m.

• 1. Roll Call - The meeting was called to order with the following members present: Directors

Vaccaro, Wilson, Adams, Bertani, Day (by teleconference), Moy, Price, Segala, Timm, Williams.

• 2. Pledge of Allegiance was led by Director Wilson.
• 3. Public Comments - No comments.
• 4. Director Comments– Directors Moy, Adams, Price, Williams, Bertani, Segala, Timm, Wilson,

Vaccaro all thanked the public for the letters they had written and their attendance at the meeting.

• 5. General Manager Report – No Comments.
• 6. Consent Calendar

(a) Approve Minutes of Meeting January 28, 2019. (b) Resolution 2019-07 Executing a Joint Community Facilities Agreement (c) Approve the Executive Committee recommendation to establish an Ad Hoc Committee to Evaluate options for conducting the General Manager’s Performance Evaluation. Director Day requested removing item 6.b from the Consent Calendar. Director Timm moved to approve the Consent Calendar without item (b). Director Segala seconded the motion. The balance of the Consent Calendar was approved/adopted by the following roll call vote: AYES: Vaccaro, Wilson, Adams, Bertani, Day, Moy, Price, Segala, Timm, Williams. NOES: None ABSENT: None General Manager Baatrup and District Counsel Curry provided additional information, explained item b and answered questions by Director Day. Director Wilson moved item 6.b. Director Williams seconded the motion. Consent Calendar Item 6.b was approved/adopted by the following roll call vote: AYES: Vaccaro, Wilson, Adams, Bertani, Day, Moy, Price, Segala, Timm, Williams. NOES: None ABSENT: None 2

Minutes March 25, 2019 Page 2 of 3

• 7. Discussion Items - None.
• 8. Action Items –

Director Vaccaro moved to table the discussion of item 8.c until the April Board of Directors

• meeting. Director Moy seconded the motion. The Board approved tabling item 8.c by the

following roll call vote: AYES: Vaccaro, Wilson, Bertani, Moy, Price, Segala, Timm, Williams. NOES: Day ABSENT: None ABSTAIN: Adams Item 8.a. - Approve Resolution 2019-08 Supporting the District as the bill Sponsor and Approving AB 530. General Manager Baatrup reported the bill had been drafted largely in compliance with the Board’s Resolution 2018-02. The bill had been amended approximately a week prior by the author to include a requirement that LAFCO had to approve the service agreement for Middle Green Valley under specific sections of 56133 and that any other agreement for service outside the boundary would need to approved by LAFCO under Government Code Section 56133. Director Wilson explained a motion that she made during the Executive Committee Meeting to recommend being a Sponsor of AB 530, approving the language of AB 530 and to reject changes from the Orderly Growth Committee as the language is prohibited to current District

• perations including agreements that exist with Lystek. As a follow-up to the actions on AB530,

she recommended the District adopt a policy regarding what conditions must exist prior to staff even participating in discussions on future development. Six public members expressed their thoughts about AB 530. Director Segala moved Resolution 2019-08 Approving Fairfield-Suisun Sewer District as a Sponsor of AB 530 and in Support of AB 530 with a policy to follow at a later date regarding

• ut of area service agreements. The motion was seconded by Director Wilson. The item was

approved/adopted by the following roll call vote: AYES: Vaccaro, Wilson, Adams, Bertani, Moy, Price, Segala, Timm, Williams. NOES: Day ABSENT: None Item 8.b. - Director Price moved authorizing legislative letters for the Board President to sign

• pposing SB 332 and supporting H.R.1764. The motion was seconded by Director Wilson, the

item was approved/adopted by the following roll call vote: AYES: Vaccaro, Wilson, Adams, Bertani, Day, Moy, Price, Segala, Timm, Williams. NOES: None ABSENT: None 3

Minutes March 25, 2019 Page 3 of 3

• 9. Information Items – No Comments.

The meeting adjourned at 07:20 p.m. Respectfully submitted, __________________________ President ATTEST: _________________________ District Clerk 4

April 18, 2019

FI-150

MEMORANDUM TO: Board of Directors THROUGH: Greg Baatrup, General Manager FROM: Helen Gaumann, Director of Administrative Services SUBJECT: Auditing Services for the Fiscal Years Ending June 30, 2019 through 2021 Authorization of Agreement Recommendation: Staff recommends the Board authorize the General Manager to execute a professional services agreement for Auditing Services to Cropper Accountancy Corporation for the fiscal years 2019 through 2021 with the option to renew for each of the additional two subsequent fiscal years. Background: The District has routinely rotated independent auditors approximately once every five years to audit its annual financial reports. A competitive process for the selection of independent auditors is undertaken at the end of the term of each agreement. The audit rotation is a recommended best business practice not only to ensure auditor independence but also to avail of the current market consulting services pricing. The District has engaged the services of Chavan and Associates to audit its annual financial reports for the past five years. Like most agencies, the District believes a multiyear agreement (3 to 5 years) provides for greater continuity and helps to minimize the potential for staff disruption by allowing the auditors to become familiar with the District’s internal control and processes in connection with the independent audit. A multiyear agreement can also help to reduce audit costs by allowing the auditors to recover certain “startup” costs over several years, rather than over a single year. Discussion: The five-year agreement with Chavan and Associates has just expired. A request for proposal was prepared by Finance staff and was sent to twelve qualified accounting firms. Four proposals were received. All proposals were carefully reviewed and references for the top two firms were checked. Staff found the proposal from John Cropper of Cropper Accountancy Corporation to be the most responsive to the District’s needs. John Cropper Accountancy 5

Auditing Services 2019 - 2021 April 18, 2019 Page 2 of 2 specializes in local government audits. Among its current wastewater agency clients are: Central Marin Sanitation Agency, Las Gallinas Sanitary, West County Wastewater District, Mt. View Sanitary District, and Sewer Authority Mid-Coastline. The proposed agreement is a three-year agreement with options for years four and five. The price is set at $17,500 per year for each of the first three years, then $18,000 per year for the additional two years should the District decide to extend. 6

April 18, 2019 MEMORANDUM TO: Board of Directors FROM: Greg Baatrup, General Manager SUBJECT: Proposal to Create and Fund Budget Line Item for City Sewer Replacement Recommendation: Receive Report and Discuss. Discussion: This item is to provide information for a discussion on whether the District should consider creating and funding a new budget line item for City Sewers Replacement. As indicated in the District budget, the District receives revenue for City of Fairfield and City of Suisun City Sewer Maintenance (see Schedule 2, Line 11 of the FY 18/19 budget). City of Fairfield has committed to sewer replacement projects and city staff has determined the revenue for City Sewers is not adequate to support their projects. The “City Sewer Line Maintenance” line item presents the expense for operation, maintenance, rehabilitation and replacement of the City of Fairfield and City of Suisun City sewer collection system as prescribed in Section 5.2 of the 1965 Agreement between the District, the City of Fairfield, and the City of Suisun City. Every month, the District remits City Sewer Maintenance funds to each city in accordance with the 1965 Agreement which is to be used “solely for the operation, maintenance, repair, reconstruction, and replacement of sanitary sewers smaller than 12” in diameter”. At its April 15, 2019 meeting, the Executive Committee recommended the Board of Directors discuss a proposal to create and fund a new line item for City Sewer Replacement. The following provides the background for the discussion item. Background: The District became aware of the City of Fairfield’s sewer system replacement funding deficiency in late 2018. Since then, the City and District staff have had several meetings to discuss the problem and identify solutions. In these meetings, the concept of the District supplying additional funding to fix the City’s problem was discussed, but there has been no formal request. The funding problem was presented to Fairfield City Council at the City’s annual Workplan Workshop in February 2019 7

MEMO – Proposal to Create and Fund Budget Line Item for City Sewer Replacement April 18, 2019 Page 2 (discussed below) and was included in the March 19, 2019 adoption of City Council 2019 Workplan and Priority Initiatives. The City of Suisun City has not raised issues with sewer system funding. City of Fairfield Sewer System Replacement Funding Deficiency At its Annual Workplan Workshop on February 23, 2019, the Fairfield City Council received a presentation on the inadequacy of the funding for its sewer collection system projects. The presentation from the City Public Works staff showed the City is in the midst of a multi-year replacement program for parts of their Sewer Collection System. The City has identified a funding shortfall for the replacement projects and needs additional funding to complete the planned work. At the workshop, City staff identified five potential funding options, the following two impact the District: 1) The District provide the increased funding within the District’s current rate structure, effectively allocating District reserve funds, plus have the District pursue future rate increases for future City replacement needs; or, 2) The District impose a rate increase for 2019 to fund City replacement needs. Based on rough estimates, the District would need to increase sewer service charges for 2019 from $40.40 per month to around $44.40 or about 10% more than the currently planned 3.6% increase. The District’s Proposition 218 Notice allows only a 3.6% increase for FY2019/2020, FY 2020/21, and FY 2021/22. City staff identified three other options, including; allocate funds from the City General Fund, pursue a City-sponsored rate dedicated to sewer replacement, or maintain Status Quo. Fairfield City Council Action (March 2019) On March 19, 2019 the Fairfield City Council approved the “Sanitary Sewer Funding” Goal as one of several priority items for the City. The workplan describes this initiative is “Evaluate costs for maintenance, repair, and replacement of the City’s sanitary sewer collection system. Prepare a plan to

• btain increased revenue to fully fund City sewer infrastructure”. The timeline described is “Complete

a cost of service analysis in Q2 to identify funding gap for City’s collection system maintenance, repair, and replacement. Collaborate with FSSD to increase revenue by Q4”. Issues to Consider Before Taking Action The question of increasing District funding to the Cities is complicated with several important issues that should be researched and considered before taking action to add another budget item for City Sewer Replacement:

• City of Fairfield and City of Suisun City need to evaluate costs for maintenance, repair, and

replacement of the City’s sanitary sewer collection system.

• Anticipating different maintenance, repair, and replacement needs; consider different rates

for each City so ratepayers pay for the actual cost of service and not a blended rate.

• If District funding is recommended, staff recommends the following activities:
• Conduct a legal analysis of the proposal to ensure conformance with Proposition 218

8

MEMO – Proposal to Create and Fund Budget Line Item for City Sewer Replacement April 18, 2019 Page 3 and other state laws.

• Review implications to District budget, especially the impact to the Major

Maintenance Fund and the impact to projects planned to repair and replace District assets.

• Conduct a legal analysis of the recommendation to ensure District debt repayment

responsibilities are not compromised.

• Evaluate the amount of new revenue the District will need to replace the funds

directed to a new City Sewer Replacement budget item.

• Update the 2017 Rate Study to incorporate new City Sewer Replacement expense.
• Consider new rates and the timing of an updated Proposition 218 Notice.
• Update the District Budget to reflect a new line item.

9

April 18, 2019 MEMORANDUM TO: Board of Directors FROM: Greg Baatrup, General Manager SUBJECT: Report from Ad Hoc Committee on General Manager Performance Evaluation Process Recommendation: The Executive Committee recommends the Board of Directors discuss

• ptions for conducting the General Manager performance review.

Discussion: Directors Timm and Wilson were selected for the Ad Hoc Committee. On April 15, 2019 they recommended to the Executive Committee that the Board of Directors discuss the following three options, presented in preferred order: 1) Hire a consultant to assist the Board with the General Manager performance evaluation including input from key staff (aka 360-degree feedback). 2) Follow past practice where the Board of Directors conducts the General Manager performance evaluation including input from key staff (aka 360-degree feedback). 3) Follow past practice where the Board of Directors conducts the General Manager performance evaluation after receiving “Chief Executive Evaluation” training from a consultant. In May 2016, the District received a proposal for a consultant to assist as suggested under Option

• 1. The consultant proposed a fee of $3,900 but is not available to assist the District. Staff has

not requested proposals from other consultants for either option 1 or 3. 10

April 18, 2019 MEMORANDUM TO: Board of Directors FROM: Greg Baatrup, General Manager SUBJECT: Board Calendar Recommendation: Review and comment as necessary on the calendar items. Background: Attached is a listing of the contemplated agenda items for the next 12 months and a recap of the non-routine agenda items. These are provided as a recap of action from the last 12 months and as a look ahead for the next 12 months. The contemplated agenda items may vary from the table as issues and priorities change overtime. Attachments: Attachment 1 - Board Calendar 11

Board of Directors

• 1. Quarterly General Manager Report
• 2. Quarterly Investment Report
• 3. Consider adding budget expense line item for City Sewer Replacement
• 4. Discuss Process for GM Evaluation
• 1. General Manager Performance Evaluation
• 2. Executive Committee recommendation on GM compensation
• 3. Adopt Resolution approving District Salary Schedule
• 4. Investment Policy Update
• 5. Board Compensation
• 6. Award Construction Services Contract for District Sewer Repair,

Rehabilitation, and Replacement

• 7. Approve Budgets for FY 2019/20 and FY 2020/21
• 1. Receive Quarterly Investment Report from pfm
• 2. Receive Report on completion of Nutrient Optimization and Upgrade

Studies

• 3. Award Consulting Services Agreement for the Records and File System

Upgrade Project

• 1. Directors Report on CASA Annual Meeting
• 2. Receive Engineer's Report on Capacity Calculation Formulas for future

Commercials and Industrial Customers

• 3. Receive Report on OMRC 3rd Operational Year
• 4. Award Consulting Services Agreement for the Deign of HVAC

Rehabilitation Project

• 1. Quarterly General Manager Report
• 2. Quarterly Investment Report
• 1. Board of Directors 2020 Meeting Schedule
• 2. Award Construction Services Agreement for the Digester Reliability

Improvement Project

• 3. Receive Final CAFR for FY 18/19
• 1. Quarterly General Manager Report
• 2. Quarterly Investment Report
• 3. Award Consulting Services Agreement ‐ Wetlands Nutrient Treatment

Study

• 4. Award Construction Services Agreement ‐ Electrical Reliability Project, Ph1
• 1. Award Construction Services Agreement ‐ HVAC Rehabilitation Project
• 2. Award Construction Services Agreement ‐ Pump Station Pavement Rehab

Fairfield‐Suisun Sewer District

Contemplated and Recent Board of Directors Agenda Items

April 18, 2019 Month Year Contemplated Board of Directors Meeting Agenda Items Executive Committee 6/17/2019 April 2019 4/15/2019 4/22/2019 Not Scheduled 6/24/2019 September 2019 9/16/2019 N/A 6/1/2019 July 2019 Special Meeting (Tentative ) ‐ Budget Workshop June 2019 May 2019 5/20/2019 7/15/2019 7/22/2019 August 2019 10/28/2019 10/21/2019 9/23/2019 November 2019 October 2019 Not Scheduled Not Scheduled 11/18/2019 11/25/2019 December 2019 Not Scheduled Not Scheduled January 2020 1/20/2020 1/27/2020 February 2020 Not Scheduled Not Scheduled March 2020 3/16/2020 3/23/2020 Page 1 of 2

Attachment #1 12

Month Year

• 1. Quarterly General Manager Report
• 2. Quarterly Investment Report from PFM
• 3. Award Construction Services Contract for Paving Project
• 1. Quarterly General Manager Report
• 4. Award Consulting Services Contract for Electrical Upgrade Project

November 2018 August 2018 October 2018

• 1. Board of Directors 2019 Meeting Schedule
• 2. Review and Approve Upgrade to District Signage
• 3. Approve Contract for the predesign/design of upgrades to Digester 2
• 4. NPDES Permit Technical Assistance contract
• 5. Resolution to join CSAC EIA to purchase Dental Insurance
• 4. Receive Report on Mission Solano Transition Agreement
• 5. Receive Organics Material Recovery Center Operation Report
• 1. General Manager Performance Evaluation
• 2. Report on Mission Solano Fee Agreement
• 3. Investment Policy Update
• 3. Provide direction to Gm on Bridge to Life Center

September 2018

• 1. Report on second year operation Organic Materials Recovery Center
• 2. Quarterly Investment Report

January 2019

• 1. Quarterly Investment Report
• 2. Quarterly General Manager Report
• 3. Resolution Congratulating retirees on the occaision of their retirement
• 4. Resolution of Support for legislative changes to the FSSD Act
• 5. Report on Master Plan Update Study
• 6. Receive Final CAFR

December 2018 Not Scheduled

• 2. Quarterly Investment Report
• 3. Review of draft District videos

Cancelled

• 3. Approve Contract for Energy Management Services
• 9. Discuss Items to be included in Board Workshop
• 10. Budget Review
• 5. Board Compensation

Not Scheduled February 2019 Not Scheduled

• 1. Review Workshop Action Items
• 2. Directors Report on CASA Annual Conference

June 2018 Recent Non‐routine Agenda Items May 2018 April 2018 July 2018

• 4. General Manager Performance Review
• 5. Executive Committee recommendation on General Manager compensation
• 6. Approve Resolution contributing funds to CASA Education Foundation
• 7. Receive Report on Mission Solano Transition Agreement
• 8. CASA Vote

Page 2 of 2

13

FI-210

April 18, 2019 MEMORANDUM TO: Board of Directors THROUGH: Greg Baatrup, General Manager FROM: Helen Gaumann, Director of Administrative Services SUBJECT: Quarterly Investment Report Attached is the District’s Quarterly Investment Report (attachment #1) for the quarter ended March 31, 2019. This report conforms to the District’s Investment Policy as re-adopted by the Board of Directors at its meeting on June 25, 2018. Also attached is the Investment Performance Report (attachment #2) for the same quarter, by Public Financial Management (PFM) Asset Management LLC. The District’s cash balances represent operating and reserve funds, held in short-term and medium-term instruments, and will enable the District to meet its anticipated cash flow requirements. Attachments: Attachment #1 - Quarterly Investment Report Attachment #2 - Investment Performance Report by PFM 14

Date of Par Market Market Estimated Instrument Maturity Value Value Yield Annual Income California Asset Mgt Program (CAMP) Various 20,617,663 $ 20,706,594 $ 2.480% 511,318 $ WFB Business Market Rate Public Funds N/A 2,750,387 2,750,387 0.200% 5,501 State Local Agency Investment Fund N/A 18,438,989 18,421,493 2.392% 441,061 Totals 41,807,039 $ 41,878,474 $ 957,879 $ NOTES: Market Value Par Value means the purchase cost of an asset. Market Yield is an approximation of the gross income an asset is California Asset Mgt Program (CAMP) 20,706,594 $ projected to earn annually, expressed as a percentage of the asset's WFB Business Market Rate Public Funds 2,750,387 market value. State Local Agency Investment Fund 18,421,493 Market Value an estimate of the value at which the principal would 41,878,474 $ be sold from a willing seller to a willing buyer. Market Values, Current Yields and Estimated Annual Income are from the following sources: Market Value Local Agency Investment Fund monthly statement 0 - 12 months 24,360,695 $ Wells Fargo Bank monthly account statement 1 - 2 years 5,715,020 California Asset Management Program statement 2 - 3 years 5,381,644 3 - 4 years 3,971,525 All investments are in compliance with the District's current 4 - 5 years 2,449,590 investment policy. The District has sufficient funds to meet its expense requirements for the next three months. 41,878,474 $ LAIF market value was not available as of date of preparation of this report. Date Prepared by

FAIRFIELD-SUISUN SEWER DISTRICT INVESTMENT REPORT FOR THE QUARTER ENDED MARCH 31, 2019 Asset Detail

Summary of Portfolio Securities Summary of Maturities 4/10/2019 Attachment #1 15

Investment Performance Review

Client Management Team 50 California Street, Suite 2300 San Francisco, CA 94111 415-982-5544 PFM Asset Management LLC 213 Market Street Harrisburg, PA 17101-2141 717-232-2723 Izac Chyou, Senior Managing Consultant

For the Quarter Ended March 31, 2019

FAIRFIELD-SUISUN SEWER DISTRICT

Attachment #2 16

Market Update

17

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 PFM Asset Management LLC

U.S. Economic Growth Slows in Fourth Quarter

2.2% 4.2% 3.4% 2.2%

• 4%
• 2%

0% 2% 4% 6% 8% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

U.S. GDP Contributors and Detractors

Personal Consumption Fixed Investment Private Inventories Net Exports Gov't Expenditures

2014 2015 2016 2017 2018

Source: Bureau of Economic Analysis, as of April 2019. Fourth quarter contributions are based on the final GDP growth estimate.

Market Update

1

18

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 PFM Asset Management LLC Market Update

Are We Nearing a Recession?

400 600 800 1,000 1,200 1,400 1,600

Housing Starts (000s, saar)

30 35 40 45 50 55 60 65

ISM Manufacturing

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%

Inflation Indicators

Core PCE (YoY) Core CPI (YoY) 100 200 300 400 500 600 700

1-5 Yr. A-AAA Corporate Index (OAS)

• 400
• 200

200 400 600

Yield Curve (bps)

3mo-10yr 100k 200k 300k 400k 500k 600k 700k

Initial Jobless Claims

Source: Bloomberg, as of 03/31/2019.

2

19

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 PFM Asset Management LLC Market Update

U.S. Consumer Finances Are Strong

Other Financial Assets: 39% Pension Funds: 21% Deposits: 11% Other tangible: 5% Homes: 24% Mortgages: 66% $0 $20 $40 $60 $80 $100 $120 $140 Total Assets Total Liabilities

Trillions

Consumer Balance Sheet - 4Q18

Total Assets: $120.4tn. Total Liabilities: $16.1tn. 4Q07: 13.2% 4Q18: 9.9% 9% 10% 11% 12% 13% 14%

Debt Payments as % of Disposable Personal Income

$0 $20 $40 $60 $80 $100 $120 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Trillions

Household Net Worth

Source: Bloomberg, and Federal Reserve’s Financial Accounts of the United States - Z.1 (2018:Q4). Consumer balance sheet includes households and nonprofit organizations. Revolving credit includes overdraft plans on checking accounts and other loans without a fixed repayment schedule. All data, except the household debt service ratio, is not seasonally adjusted.

Other non-revolving: 1% Revolving: 7% Auto loans: 7% Other liabilities: 9% Student debt: 10%

3

20

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 PFM Asset Management LLC Market Update

Consumer Expectations of Future Economic Conditions Weakens

Source: Bloomberg and Conference Board, as of 03/31/2019.

• 100
• 75
• 50
• 25

25 50 75 100 Mar '71 Mar '75 Mar '79 Mar '83 Mar '87 Mar '91 Mar '95 Mar '99 Mar '03 Mar '07 Mar '11 Mar '15 Mar '19 Expectations - Present Situation

Consum ers optim istic about the future Consum ers less optim istic about the future 4

21

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 PFM Asset Management LLC Market Update

 Investors’ appetite for riskier equity assets, coupled with the Fed’s recent move to a more “patient” stance regarding further rate

hikes, drove Treasury yields further downward during the first quarter

 The 2-year Treasury decreased by 26 basis points from December 31, 2018 to end the quarter at 2.26%

Treasury Yields Fall Further Post Fed Meeting

Source: Bloomberg, as of 03/31/2019.

1.75% 2.00% 2.25% 2.50% 2.75% 3.00% Mar '18 Jun '18 Sep '18 Dec '18 Mar '19 Yield

2-Year U.S. Treasury

2.27% 2.53% 2.49% 2.26% 2.82% 5

22

Source: FOMC Statement March 20, 2019.

PFM Asset Management LLC FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Market Update

 GDP and unemployment forecasts were downgraded.  Growth of household spending and business fixed investment have slowed.  In light of global economic and financial developments and easing inflation expectations, the Committee forecasts the Fed Funds Rate to remain at current levels through 2019, after signaling two more rate hikes this past December. 

• Implication: Likely no further rate hikes in 2019; the Fed may cut rates by year end.

Fed Shifted to a More Patient Stance in March

6

The Committee will assess realized and expected economic conditions. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.

23

PFM Asset Management LLC FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Market Update

Are We Done With Rate Hikes?

• 0.50%
• 0.25%

0.00% 0.25% 0.50% 0.75% Mar '18 May '18 Jul '18 Sep '18 Nov '18 Jan '19 Mar '19

2019 Rate Moves Priced into the Futures Market

• 0.30%

1 3 2

Hikes

1 2

Cuts

Source: Bloomberg, as of 03/28/2019.

7

24

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 PFM Asset Management LLC Market Update

U.S. Treasury Yields Have Fallen; Inversion Deepens

Source: Bloomberg, as of 03/29/2019.`

1Q2019 3/29/19 4Q2018 12/31/18 1Q2018 3/31/18 3-month 2.38% 2.35% 1.70% 6-month 2.42% 2.48% 1.91% 1-year 2.39% 2.60% 2.08% 2-year 2.26% 2.49% 2.27% 3-year 2.20% 2.46% 2.38% 5-year 2.23% 2.51% 2.56% 10-year 2.41% 2.68% 2.74%

1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 3M 6M 1Y 2Y 3Y 5Y 10Y Yield Maturity March 29, 2019 December 31, 2018 March 31, 2018 8

25

Investment Strategy & Portfolio Review

26

PFM Asset Management LLC FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Review



2018, ending the first quarter nearly back to where they were six months ago. However, interest rates continued to move lower and the yield curve inverted.

 Because of maturity of the current business cycle, slower growth prospects, and a Fed now on hold for further rate hikes, we

removed our defensive bias (duration positioning short of the benchmark) with regard to portfolio duration, a strategy that had been in place for much of 2017-18 while rates were rising. We are now targeting durations that are in line with the benchmark.

• U.S. Treasury yields with maturities beyond one year fell 20-30 basis points (0.20% to 0.30%). In the last week of the

quarter, the 3-month to 10-year part of the yield curve inverted, renewing concerns about a possible recession in coming months.

• Our sector allocation strategy continued to favor broad diversification, generally including the widest range of permitted
• investments. While the fourth quarter flight to safer assets strongly favored Treasuries, the first quarter’s rebound

generated strong excess returns for the portfolio that included other spread products as most fixed income sectors

• utperformed similar duration Treasuries.
• With agency spreads near historic lows, we continued to favor other sectors. The exceptions were a few new issues that
• ffered wider than average yield spreads. As an alternative, we continued to evaluate supranationals, but the expected

increase in supply never materialized, keeping yield spreads narrow. As a result, we did not materially increase allocations to the supranational sector during the quarter.

• After corporate yield spreads increased to their widest levels in over two years in the fourth quarter, we sought
• pportunities to add allocations and increase durations in the sector.
• Asset-backed securities (ABS) holdings were positioned near their largest allocations in over a year. We found ABS to be

an attractive and alternative outlet to credit, as ABS typically experiences less volatility than corporates during periods of stress.

• Within mortgage-backed securities (MBS), we continued to favor agency-backed commercial MBS (CMBS) as their

prepayments, therefore performance is less sensitive to interest rate changes.

Portfolio Recap

9

In a strong reversal, equity markets, credit spreads, and volatility all reversed their sharp sell-off from the fourth quarter of 27

PFM Asset Management LLC FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Compliance

 The portfolio is in compliance with the District’s Investment Policy and California Government Code.

Sector Allocation & Compliance

Market values, excluding accrued interest. Detail may not add to total due to rounding. Current investment policy as of July 2016.

Security Type Market Value % of Portfolio % Change

• vs. 12/31/18

Permitted by Policy In Compliance U.S. Treasury $4,443,586 21.6% +2.5% 100%  Federal Agency $1,314,999 6.4% +3.0% 100%  Federal Agency CMOs $351,647 1.7%

• 0.1%

100%  California Municipal Obligations $176,580 0.9%

• 20%

 Supranationals $870,127 4.2%

• 30%

 Negotiable CDs $3,838,108 18.6%

• 0.1%

30%  Corporate Notes $6,127,953 29.7%

• 0.1%

30%  Commercial Paper $1,044,083 5.1%

• 3.1%

25%  Asset-Backed Securities $2,317,074 11.2%

• 1.8%

20%  Securities Sub-Total $20,484,157 99.4% Accrued Interest $107,346 Securities Total $20,591,503 CAMP $115,091 0.6%

• 0.1%

100%  Total Investments $20,706,594 100.0%

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FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Snapshot

Portfolio Statistics

As of March 31, 2019 $20,617,663 $20,706,594 $20,484,157 $107,346

• Accrued Interest:

Cash: Par Value: Total Market Value: Security Market Value: CAMP $115,091 $20,561,678 2.48% 2.47% AA Average Credit: * Yield at Cost: Amortized Cost: Yield at Market: Effective Duration: 2.05 Years Duration to Worst: 2.11 Years Average Maturity: 2.38 Years

Credit Quality (S&P Ratings)**

11.5% A 4.4% A- 8.3% A+ 9.6% A-1 3.6% A-1+ 1.4% AA 8.4% AA- 29.7% AA+ 13.7% AAA 0.6% AAAm 6.8% BBB+ 1.8% Not Rated 0% 4% 8% 12% 16% 20% 24% 28% 0 - 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years 15.4% 27.6% 26.0% 19.2% 11.8% 0.0%

Maturity Distribution

Sector Allocation

11.3% Asset-Backed 18.6% Certificate

• f Deposit

5.1% Commercial Paper 29.7% Corporate 1.7% Federal Agency/CMO 6.4% Federal Agency/GSE 0.6% Mny Mkt Fund/Pool 0.9% Municipal 4.2% Supra-Sov/ Supra-Natl Agency 21.5% U.S. Treasury

PFM Asset Management LLC

* An average of each security’s credit rating assigned a numeric value and adjusted for its relative weighting in the portfolio.

**Securities held in the District's portfolio are in compliance with California state statutes and the District's investment policy dated July 2016.

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29

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Composition

Sector Allocation

March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 % of Total MV ($MM) Sector % of Total % of Total % of Total MV ($MM) MV ($MM) MV ($MM) Corporate 6.1 29.7% 6.1 29.7% 5.6 27.6% 5.8 29.0% U.S. Treasury 4.4 21.5% 3.9 19.1% 3.6 17.8% 3.2 16.0% Certificate of Deposit 3.8 18.6% 3.8 18.8% 3.9 19.5% 3.9 19.2% Asset-Backed 2.3 11.3% 2.7 13.1% 2.7 13.7% 2.5 12.6% Federal Agency/GSE 1.3 6.4% 0.7 3.4% 0.5 2.5% 0.5 2.6% Commercial Paper 1.0 5.1% 1.7 8.2% 1.8 9.1% 2.3 11.4% Supra-Sov / Supra-Natl Agency 0.9 4.2% 0.9 4.3% 1.4 6.8% 1.2 5.9% Federal Agency/CMO 0.4 1.7% 0.4 1.8% 0.3 1.4% 0.3 1.5% Municipal 0.2 0.9% 0.2 0.9% 0.2 0.9% 0.2 0.9% Mny Mkt Fund / Pool 0.1 0.6% 0.1 0.7% 0.1 0.7% 0.2 0.9% $20.6 100.0% $20.3 100.0% $20.1 100.0% $20.0 100.0% Total 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% March 2019 December 2018 September 2018 June 2018 Mny Mkt Fund/Pool Municipal Federal Agency/CMO Supra-Sov / Supra-Natl Agency Commercial Paper Federal Agency/GSE Asset-Backed Certificate of Deposit U.S. Treasury Corporate

PFM Asset Management LLC

Detail may not add to total due to rounding.

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30

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Composition

Maturity Distribution

As of March 31, 2019

>5 Years 4-5 Years 3-4 Years 2-3 Years 1-2 Years 0-1 Years Yield at Market Portfolio/Benchmark Average Maturity 2.48% 15.4% 27.6% 26.0% 19.2% 11.8% 0.0% 2.38 yrs FAIRFIELD-SUISUN SEWER DISTRICT ICE BofAML 0-5 Year U.S. Treasury Index 2.33% 23.3% 25.1% 21.6% 15.2% 14.8% 0.0% 2.26 yrs 0% 4% 8% 12% 16% 20% 24% 28% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years 15.4% 27.6% 26.0% 19.2% 11.8% 0.0% 23.3% 25.1% 21.6% 15.2% 14.8% 0.0%

FAIRFIELD-SUISUN SEWER DISTRICT ICE BofAML 0-5 Year U.S. Treasury Index

PFM Asset Management LLC

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31

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Performance

Portfolio Performance (Total Return)

Effective Duration Portfolio/Benchmark Annualized Return 10 Year 1 Year 3 Year 5 Year Since Inception (03/31/17) Current Quarter 2.05 1.52%

• 3.53%
• 1.91%

FAIRFIELD-SUISUN SEWER DISTRICT ICE BofAML 0-5 Year U.S. Treasury Index 2.09 1.10%

• 2.96%
• 1.54%

Difference 0.57% 0.42%

• 0.37%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Current Quarter 1 Y ear 3 Y ear 5 Y ear 10 Y ear Since Inception 1.52% 3.53% 1.91% 1.10% 2.96% 1.54%

Total Return

FAIRFIELD-SUISUN SEWER DISTRICT ICE BofAML 0-5 Year U.S. Treasury Index

PFM Asset Management LLC

Portfolio performance is gross of fees unless otherwise indicated.

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FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Performance

Portfolio Earnings

Quarter Ended March 31, 2019 Market Value Basis Accrual (Amortized Cost) Basis Net Purchases/Sales Change in Value Interest Earned $20,297,196.09 $107,950.77 $194,101.23 $116,128.38 $310,229.61 $20,599,248.09 $20,453,296.20 $107,950.77 $430.79 $116,128.38 $116,559.17 $20,561,677.76 Portfolio Earnings Beginning Value (12/31/2018) Ending Value (03/31/2019) PFM Asset Management LLC

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33

PFM Asset Management LLC FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Outlook

Investment Strategy Outlook

 As a result of the outlook for slower economic growth, we continue to recommend maintaining diversification among investment

grade sectors with a tilt toward higher grade corporate bonds given their income-producing potential.

 With the Fed on hold and the market’s current outlook for lower future interest rates, we will maintain a neutral duration posture

in the portfolio relative to the benchmark.



• As federal agency spreads remain very tight, we will continue to moderate use of the sector, seeking better value in either

Treasuries or other sectors. Given the inverted-to-flat yield curve, we will also evaluate callable agencies for their incremental yield.

• In supranationals, we continue to wait for expected supply to drive spreads wider. Until then, we will generally remain on

the sidelines.

• In the corporate sector, yield spreads have narrowed back significantly, settling in around longer-term, post-recession

historical averages. While the sector is no longer “cheap,” we plan to maintain allocations to the sector. Although the Treasury yield curve is flat, the corporate spread curve remains positively sloped, offering value for extending maturities. But, given international growth concerns, we remain diligent in our issuer and security selection process.

• Allocations to AAA-rated ABS will be maintained. The sector continues to offer attractive incremental income compared to

government security alternatives and continues to offer a defensive outlet to credit exposure.

• Agency MBS continues to be an alternative to other government sectors for its incremental income potential. Our analysis

focuses on the expected performance of various structures and collateral types to identifying value. As the Fed has pre- announced the end of its balance sheet reduction measures, MBS may benefit later in the year.

• Money market securities continue to reap the rewards of short-term rates above 2.25%. Short-term, high quality credit in

the form of negotiable bank certificates of deposit and commercial paper continue to offer good income potential, especially in light of the partially inverted Treasury yield curve.

16

Our outlook for each of the major investment-grade, fixed-income sectors are as follows: 34

Issuer Distribution

35

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Composition

Sector/Issuer Distribution

As of March 31, 2019

% of Sector Sector / Issuer Market Value ($) % of Total Portfolio Asset-Backed ALLY AUTO RECEIVABLES TRUST 1.5% 13.4% 309,551 AMERICAN EXPRESS CO 1.1% 9.7% 224,648 CITIGROUP INC 1.4% 12.9% 297,943 FORD CREDIT AUTO LEASE TRUST 0.4% 3.7% 85,643 FORD CREDIT AUTO OWNER TRUST 0.7% 6.6% 153,916 GM FINANCIAL AUTO LEASING TRUST 0.3% 2.8% 65,453 GM FINANCIAL SECURITIZED TERM 0.5% 4.1% 95,746 HONDA AUTO RECEIVABLES 1.7% 15.2% 351,471 HYUNDAI AUTO RECEIVABLES 1.3% 11.8% 274,466 JOHN DEERE OWNER TRUST 0.5% 4.7% 109,641 NISSAN AUTO RECEIVABLES 0.5% 4.5% 105,089 TOYOTA MOTOR CORP 1.2% 10.5% 243,508 100.0% 11.2% 2,317,074 Sector Total Certificate of Deposit BANK OF MONTREAL 1.5% 7.9% 301,425 BANK OF NOVA SCOTIA 1.8% 9.8% 377,625 CREDIT SUISSE GROUP 1.0% 5.2% 200,226 MITSUBISHI UFJ FINANCIAL GROUP INC 1.0% 5.2% 201,499 NORDEA BANK AB 1.0% 5.2% 200,443

PFM Asset Management LLC

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36

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Composition

% of Sector Sector / Issuer Market Value ($) % of Total Portfolio ROYAL BANK OF CANADA 2.4% 13.1% 502,712 SKANDINAVISKA ENSKILDA BANKEN AB 1.9% 10.1% 388,975 SUMITOMO MITSUI FINANCIAL GROUP INC 1.5% 7.9% 304,193 SWEDBANK AB 1.9% 10.3% 396,871 TORONTO-DOMINION BANK 1.2% 6.5% 250,059 UBS AG 1.7% 9.1% 351,127 WESTPAC BANKING CORP 1.8% 9.5% 362,953 100.0% 18.6% 3,838,108 Sector Total Commercial Paper BNP PARIBAS 2.4% 47.8% 499,063 CANADIAN IMPERIAL BANK OF COMMERCE 1.4% 28.5% 297,356 JP MORGAN CHASE & CO 1.2% 23.7% 247,664 100.0% 5.1% 1,044,083 Sector Total Corporate AMERICAN EXPRESS CO 1.0% 3.3% 202,604 AMERICAN HONDA FINANCE 1.4% 4.6% 283,985 BANK OF AMERICA CO 0.8% 2.7% 165,799 CATERPILLAR INC 0.7% 2.4% 148,316 CITIGROUP INC 1.7% 5.5% 339,910 COMCAST CORP 1.0% 3.3% 202,724 DEERE & COMPANY 1.0% 3.3% 199,891 GENERAL DYNAMICS CORP 0.6% 1.9% 115,381 GENERAL ELECTRIC CO 1.0% 3.3% 203,806

PFM Asset Management LLC

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37

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Composition

% of Sector Sector / Issuer Market Value ($) % of Total Portfolio GOLDMAN SACHS GROUP INC 1.6% 5.3% 322,338 HERSHEY COMPANY 0.4% 1.4% 85,848 HOME DEPOT INC 0.9% 3.0% 181,079 IBM CORP 1.0% 3.2% 196,948 INTEL CORPORATION 1.0% 3.3% 201,181 JP MORGAN CHASE & CO 1.0% 3.3% 199,916 MORGAN STANLEY 1.7% 5.6% 342,756 NATIONAL RURAL UTILITIES CO FINANCE CORP 0.9% 3.0% 185,948 PACCAR FINANCIAL CORP 0.8% 2.6% 159,862 STATE STREET CORPORATION 0.9% 3.2% 194,890 TEXAS INSTRUMENTS INC 0.6% 2.0% 120,741 THE BANK OF NEW YORK MELLON CORPORATION 0.9% 3.2% 194,888 THE WALT DISNEY CORPORATION 1.0% 3.2% 198,133 TOYOTA MOTOR CORP 1.9% 6.5% 400,866 UNILEVER PLC 1.4% 4.6% 284,816 UNITED PARCEL SERVICE INC 0.8% 2.6% 158,586 VISA INC 1.0% 3.2% 197,885 WAL-MART STORES INC 1.4% 4.9% 297,407 WELLS FARGO & COMPANY 1.7% 5.6% 341,449 100.0% 29.7% 6,127,953 Sector Total Federal Agency/CMO FANNIE MAE 0.5% 30.9% 108,772 FREDDIE MAC 1.2% 69.1% 242,874

PFM Asset Management LLC

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38

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Composition

% of Sector Sector / Issuer Market Value ($) % of Total Portfolio 100.0% 1.7% 351,647 Sector Total Federal Agency/GSE FANNIE MAE 2.2% 34.4% 452,120 FEDERAL HOME LOAN BANKS 4.2% 65.6% 862,878 100.0% 6.4% 1,314,999 Sector Total Mny Mkt Fund / Pool CAMP POOL 0.6% 100.0% 115,091 100.0% 0.6% 115,091 Sector Total Municipal CALIFORNIA ST 0.9% 100.0% 176,580 100.0% 0.9% 176,580 Sector Total Supra-Sov / Supra-Natl Agency INTER-AMERICAN DEVELOPMENT BANK 1.0% 22.5% 196,192 INTERNATIONAL FINANCE CORPORATION 0.4% 9.8% 84,982 INTL BANK OF RECONSTRUCTION AND DEV 2.9% 67.7% 588,953 100.0% 4.2% 870,127 Sector Total U.S. Treasury UNITED STATES TREASURY 21.6% 100.0% 4,443,586

PFM Asset Management LLC

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39

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Composition

% of Sector Sector / Issuer Market Value ($) % of Total Portfolio 100.0% 21.6% 4,443,586 Sector Total 100.0% 20,599,248 Portfolio Total 100.0%

PFM Asset Management LLC

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40

Portfolio Transactions

41

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Activity

Quarterly Portfolio Transactions

Trade Date Settle Date Maturity Date Par ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV) Coupon BUY 1/7/19 1/9/19 325,000 313383YJ4 FEDERAL HOME LOAN BANK NOTES 9/8/23 338,725.97 2.67% 3.37% 1/9/19 1/11/19 200,000 3135G0U92 FANNIE MAE NOTES 1/11/22 199,856.00 2.65% 2.62% 1/9/19 1/11/19 195,000 912828WL0 US TREASURY NOTES 5/31/19 194,583.40 2.51% 1.50% 1/30/19 1/31/19 220,000 9128285U0 US TREASURY N/B 12/31/23 221,147.67 2.56% 2.62% 1/30/19 1/31/19 200,000 3130A0F70 FEDERAL HOME LOAN BANKS NOTES 12/8/23 206,888.53 2.72% 3.37% 2/7/19 2/8/19 150,000 3135G0V34 FANNIE MAE NOTES 2/5/24 149,442.00 2.58% 2.50% 2/8/19 2/12/19 310,000 912828Q29 US TREASURY NOTES 3/31/23 300,305.45 2.44% 1.50% 2/8/19 2/12/19 315,000 912828S92 US TREASURY NOTES 7/31/23 299,368.22 2.44% 1.25% 2/27/19 2/28/19 200,000 55379WZT6 MUFG BANK LTD/NY CERT DEPOS 2/26/21 200,000.00 2.99% 2.97% 3/6/19 3/8/19 555,000 912828WE6 US TREASURY NOTES 11/15/23 565,379.30 2.52% 2.75% 2,670,000 2,675,696.54 Total BUY INTEREST 1/1/19 1/25/19 118,213 3136B1XP4 FNA 2018-M5 A2 9/25/21 373.13 3.56% 1/1/19 1/25/19 155,000 3137BM6P6 FHLMC SERIES K721 A2 8/25/22 399.13 3.09% 1/1/19 1/25/19 95,000 3137FKK39 FHMS KP05 A 7/1/23 253.57 3.20% 1/8/19 1/8/19 55,000 24422ETZ2 JOHN DEERE CAPITAL CORP NOTES 1/8/21 646.25 2.35% 1/15/19 1/15/19 145,000 02007FAC9 ALLY ABS 2017-4 A3 12/15/21 211.46 1.75% 1/15/19 1/15/19 200,000 20030NBD2 COMCAST CORPORATION CORP NOTES 7/15/22 3,125.00 3.12% 1/15/19 1/15/19 209,855 02007HAC5 ALLY ABS 2017-2 A3 8/15/21 311.28 1.78% 1/15/19 1/15/19 50,000 47788CAC6 JDOT 2018-A A3 4/15/22 110.83 2.66% 1/15/19 1/15/19 33,049 12636WAB2 CNH 2017-A A2 7/15/20 45.17 1.64% 1/15/19 1/15/19 155,000 34531HAD1 FORD ABS 2017-B A3 11/15/21 218.29 1.69% 1/15/19 1/15/19 161,824 89238MAD0 TOYOTA ABS 2017-A A3 2/15/21 233.30 1.73%

PFM Asset Management LLC

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42

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Activity

Trade Date Settle Date Maturity Date Par ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV) Coupon 1/15/19 1/15/19 200,000 48128BAB7 JPMORGAN CHASE & CO (CALLABLE) NOTES 1/15/23 2,972.00 2.97% 1/15/19 1/15/19 130,000 44931PAD8 HYUNDAI ABS 2017-A A3 8/15/21 190.67 1.76% 1/15/19 1/15/19 200,000 43811BAC8 HONDA ABS 2017-2 A3 8/15/21 280.00 1.68% 1/15/19 1/15/19 165,000 44932GAD7 HYUNDAI ABS 2017-B A3 1/15/22 243.38 1.77% 1/15/19 1/15/19 105,000 65478DAD9 NAROT 2018-A A3 5/15/22 231.87 2.65% 1/15/19 1/15/19 225,000 02582JHG8 AMERICAN EXPRESS ABS 2017-4 A 12/15/21 307.50 1.64% 1/15/19 1/15/19 175,000 43814UAC3 HAROT 2018-1 A3 2/15/22 385.00 2.64% 1/15/19 1/15/19 60,000 47788BAD6 JOHN DEERE ABS 2017-B A3 10/15/21 91.00 1.82% 1/15/19 1/15/19 120,000 89237RAD0 TOYOTA ABS 2017-C A3 11/15/21 178.00 1.78% 1/15/19 1/15/19 85,000 34531LAD2 FORDL 2018-B A3 12/15/21 225.96 3.19% 1/16/19 1/16/19 95,000 36255JAD6 GMCAR 2018-3 A3 5/16/23 239.08 3.02% 1/20/19 1/20/19 65,000 36256GAD1 GMALT 2018-3 A3 6/20/21 172.25 3.18% 1/20/19 1/20/19 200,000 44932HAB9 IBM CREDIT CORP NOTE 1/20/21 1,800.00 1.80% 1/20/19 1/20/19 85,000 02665WBT7 AMERICAN HONDA FINANCE CORP NOTES 7/20/20 828.75 1.95% 1/22/19 1/22/19 340,000 94974BFR6 WELLS FARGO & CO CORP NOTE 1/22/21 5,100.00 3.00% 1/23/19 1/23/19 290,000 459058GH0 INTL BANK OF RECONSTRUCTION AND DEV NOTE 7/23/21 3,944.00 2.75% 1/24/19 1/24/19 85,000 06051GEM7 BANK OF AMERICA CORP CORP NOTES 1/24/22 2,422.50 5.70% 1/31/19 1/31/19 200,000 9128282P4 US TREASURY NOTES 7/31/22 1,875.00 1.87% 1/31/19 1/31/19 125,000 912828P38 US TREASURY NOTES 1/31/23 1,093.75 1.75% 1/31/19 1/31/19 510,000 912828P38 US TREASURY NOTES 1/31/23 4,462.50 1.75% 1/31/19 1/31/19 380,000 912828H86 US TREASURY NOTES 1/31/22 2,850.00 1.50% 1/31/19 1/31/19 465,000 912828H86 US TREASURY NOTES 1/31/22 3,487.50 1.50% 1/31/19 1/31/19 220,000 912828S76 US TREASURY NOTES 7/31/21 1,237.50 1.12% 2/1/19 2/1/19 205,000 025816BM0 AMERICAN EXPRESS CREDIT (CALLABLE) NOTES 8/1/22 2,562.50 2.50% 2/1/19 2/25/19 94,847 3137FKK39 FHMS KP05 A 7/1/23 253.16 3.20% 2/1/19 2/25/19 155,000 3137BM6P6 FHLMC SERIES K721 A2 8/25/22 399.13 3.09% 2/1/19 2/25/19 111,455 3136B1XP4 FNA 2018-M5 A2 9/25/21 336.62 3.56% 2/4/19 2/4/19 390,000 83050FXT3 SKANDINAVISKA ENSKILDA BANKEN NY CD 8/2/19 3,707.60 1.84% 2/7/19 2/7/19 365,000 96121T4A3 WESTPAC BANKING CORP NY CD 8/3/20 3,741.25 2.05% 2/7/19 2/7/19 195,000 06406RAA5 BANK OF NY MELLON CORP (CALLABLE) NOTES 2/7/22 2,535.00 2.60%

PFM Asset Management LLC

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43

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Activity

Trade Date Settle Date Maturity Date Par ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV) Coupon 2/12/19 2/12/19 200,000 02665WCD1 AMERICAN HONDA FINANCE 2/12/21 2,650.00 2.65% 2/15/19 2/15/19 120,000 89237RAD0 TOYOTA ABS 2017-C A3 11/15/21 178.00 1.78% 2/15/19 2/15/19 105,000 65478DAD9 NAROT 2018-A A3 5/15/22 231.87 2.65% 2/15/19 2/15/19 165,000 44932GAD7 HYUNDAI ABS 2017-B A3 1/15/22 243.38 1.77% 2/15/19 2/15/19 200,000 43811BAC8 HONDA ABS 2017-2 A3 8/15/21 280.00 1.68% 2/15/19 2/15/19 50,000 47788CAC6 JDOT 2018-A A3 4/15/22 110.83 2.66% 2/15/19 2/15/19 127,964 44931PAD8 HYUNDAI ABS 2017-A A3 8/15/21 187.68 1.76% 2/15/19 2/15/19 194,809 02007HAC5 ALLY ABS 2017-2 A3 8/15/21 288.97 1.78% 2/15/19 2/15/19 145,000 02007FAC9 ALLY ABS 2017-4 A3 12/15/21 211.46 1.75% 2/15/19 2/15/19 9,688 12636WAB2 CNH 2017-A A2 7/15/20 13.24 1.64% 2/15/19 2/15/19 175,000 43814UAC3 HAROT 2018-1 A3 2/15/22 385.00 2.64% 2/15/19 2/15/19 225,000 02582JHG8 AMERICAN EXPRESS ABS 2017-4 A 12/15/21 307.50 1.64% 2/15/19 2/15/19 149,333 89238MAD0 TOYOTA ABS 2017-A A3 2/15/21 215.29 1.73% 2/15/19 2/15/19 60,000 47788BAD6 JOHN DEERE ABS 2017-B A3 10/15/21 91.00 1.82% 2/15/19 2/15/19 155,000 34531HAD1 FORD ABS 2017-B A3 11/15/21 218.29 1.69% 2/15/19 2/15/19 85,000 34531LAD2 FORDL 2018-B A3 12/15/21 225.96 3.19% 2/16/19 2/16/19 95,000 36255JAD6 GMCAR 2018-3 A3 5/16/23 239.08 3.02% 2/18/19 2/18/19 195,000 857477AS2 STATE STREET CORP NOTES 8/18/20 2,486.25 2.55% 2/20/19 2/20/19 65,000 36256GAD1 GMALT 2018-3 A3 6/20/21 172.25 3.18% 2/20/19 2/20/19 200,000 65590ASN7 NORDEA BANK AB NY CD 2/20/20 2,720.00 2.72% 3/1/19 3/1/19 105,000 69371RN93 PACCAR FINANCIAL CORP NOTES 3/1/21 1,470.00 2.80% 3/1/19 3/1/19 80,000 437076BV3 HOME DEPOT INC 3/1/22 613.89 3.25% 3/1/19 3/25/19 155,000 3137BM6P6 FHLMC SERIES K721 A2 8/25/22 399.13 3.09% 3/1/19 3/25/19 94,694 3137FKK39 FHMS KP05 A 7/1/23 252.75 3.20% 3/1/19 3/25/19 109,603 3136B1XP4 FNA 2018-M5 A2 9/25/21 331.67 3.56% 3/4/19 3/4/19 150,000 14913Q2A6 CATERPILLAR FINL SERVICE NOTE 9/4/20 1,387.50 1.85% 3/4/19 3/4/19 350,000 90275DHG8 UBS AG STAMFORD CT LT CD 3/2/20 5,103.19 2.90% 3/8/19 3/8/19 200,000 89236TEC5 TOYOTA MOTOR CREDIT CORP NOTES 9/8/22 2,150.00 2.15% 3/8/19 3/8/19 300,000 313383YJ4 FEDERAL HOME LOAN BANK NOTES 9/8/23 5,062.50 3.37% 3/8/19 3/8/19 325,000 313383YJ4 FEDERAL HOME LOAN BANK NOTES 9/8/23 5,484.38 3.37%

PFM Asset Management LLC

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44

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Activity

Trade Date Settle Date Maturity Date Par ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV) Coupon 3/9/19 3/9/19 85,000 45950VLQ7 INTERNATIONAL FINANCE CORPORATION NOTE 3/9/21 1,120.30 2.63% 3/12/19 3/12/19 300,000 45905UP32 INTL BANK OF RECONSTRUCTION AND DEV NOTE 9/12/20 2,343.00 1.56% 3/12/19 3/12/19 100,000 24422EUD9 JOHN DEERE CAPITAL CORP NOTES 3/12/21 1,437.50 2.87% 3/12/19 3/12/19 120,000 882508AY0 TEXAS INSTRUMENTS INC (CALLABLE) NOTE 3/12/21 1,650.00 2.75% 3/14/19 3/14/19 200,000 4581X0CZ9 INTER-AMERICAN DEVEL BANK 9/14/22 1,750.00 1.75% 3/15/19 3/15/19 315,000 38141EA58 GOLDMAN SACHS GROUP INC CORP NOTES 3/15/20 8,465.63 5.37% 3/15/19 3/15/19 179,871 02007HAC5 ALLY ABS 2017-2 A3 8/15/21 266.81 1.78% 3/15/19 3/15/19 200,000 92826CAG7 VISA INC (CALLABLE) NOTE 9/15/22 2,150.00 2.15% 3/15/19 3/15/19 175,000 43814UAC3 HAROT 2018-1 A3 2/15/22 385.00 2.64% 3/15/19 3/15/19 189,611 43811BAC8 HONDA ABS 2017-2 A3 8/15/21 265.45 1.68% 3/15/19 3/15/19 155,000 34531HAD1 FORD ABS 2017-B A3 11/15/21 218.29 1.69% 3/15/19 3/15/19 105,000 65478DAD9 NAROT 2018-A A3 5/15/22 231.87 2.65% 3/15/19 3/15/19 225,000 02582JHG8 AMERICAN EXPRESS ABS 2017-4 A 12/15/21 307.50 1.64% 3/15/19 3/15/19 136,660 89238MAD0 TOYOTA ABS 2017-A A3 2/15/21 197.02 1.73% 3/15/19 3/15/19 60,000 47788BAD6 JOHN DEERE ABS 2017-B A3 10/15/21 91.00 1.82% 3/15/19 3/15/19 50,000 47788CAC6 JDOT 2018-A A3 4/15/22 110.83 2.66% 3/15/19 3/15/19 165,000 44932GAD7 HYUNDAI ABS 2017-B A3 1/15/22 243.38 1.77% 3/15/19 3/15/19 120,000 89237RAD0 TOYOTA ABS 2017-C A3 11/15/21 178.00 1.78% 3/15/19 3/15/19 119,580 44931PAD8 HYUNDAI ABS 2017-A A3 8/15/21 175.38 1.76% 3/15/19 3/15/19 85,000 63743HER9 NATIONAL RURAL UTIL COOP NOTE 3/15/21 1,232.50 2.90% 3/15/19 3/15/19 85,000 34531LAD2 FORDL 2018-B A3 12/15/21 225.96 3.19% 3/15/19 3/15/19 100,000 63743HER9 NATIONAL RURAL UTIL COOP NOTE 3/15/21 1,450.00 2.90% 3/15/19 3/15/19 145,000 02007FAC9 ALLY ABS 2017-4 A3 12/15/21 211.46 1.75% 3/16/19 3/16/19 95,000 36255JAD6 GMCAR 2018-3 A3 5/16/23 239.08 3.02% 3/16/19 3/16/19 200,000 36962G4R2 GENERAL ELECTRIC CAPITAL CORP CORP NOTE 9/16/20 4,375.00 4.37% 3/20/19 3/20/19 65,000 36256GAD1 GMALT 2018-3 A3 6/20/21 172.25 3.18% 3/22/19 3/22/19 185,000 904764AZ0 UNILEVER CAPITAL CORP NOTES 3/22/21 2,543.75 2.75% 3/31/19 3/31/19 500,000 9128282W9 US TREASURY NOTES 9/30/22 4,687.50 1.87% 3/31/19 3/31/19 310,000 912828Q29 US TREASURY NOTES 3/31/23 2,325.00 1.50%

PFM Asset Management LLC

25

45

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Activity

Trade Date Settle Date Maturity Date Par ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV) Coupon 16,781,055 126,841.40 Total INTEREST MATURITY 1/11/19 1/11/19 400,000 4497W1NB8 ING (US) FUNDING LLC COMM PAPER 1/11/19 400,000.00 0.00 0.00% 400,000 400,000.00 0.00 Total MATURITY PAYDOWNS 1/1/19 1/25/19 6,758 3136B1XP4 FNA 2018-M5 A2 9/25/21 6,758.23 0.00 3.56% 1/1/19 1/25/19 153 3137FKK39 FHMS KP05 A 7/1/23 152.54 0.00 3.20% 1/15/19 1/15/19 12,490 89238MAD0 TOYOTA ABS 2017-A A3 2/15/21 12,490.43 0.00 1.73% 1/15/19 1/15/19 23,362 12636WAB2 CNH 2017-A A2 7/15/20 23,361.71 0.00 1.64% 1/15/19 1/15/19 2,036 44931PAD8 HYUNDAI ABS 2017-A A3 8/15/21 2,036.46 0.00 1.76% 1/15/19 1/15/19 15,046 02007HAC5 ALLY ABS 2017-2 A3 8/15/21 15,045.93 0.00 1.78% 2/1/19 2/25/19 153 3137FKK39 FHMS KP05 A 7/1/23 153.32 0.00 3.20% 2/1/19 2/25/19 1,852 3136B1XP4 FNA 2018-M5 A2 9/25/21 1,852.08 0.00 3.56% 2/15/19 2/15/19 9,688 12636WAB2 CNH 2017-A A2 7/15/20 9,687.78 0.00 1.64% 2/15/19 2/15/19 14,937 02007HAC5 ALLY ABS 2017-2 A3 8/15/21 14,937.29 0.00 1.78% 2/15/19 2/15/19 10,389 43811BAC8 HONDA ABS 2017-2 A3 8/15/21 10,389.30 0.00 1.68% 2/15/19 2/15/19 8,384 44931PAD8 HYUNDAI ABS 2017-A A3 8/15/21 8,383.78 0.00 1.76% 2/15/19 2/15/19 12,674 89238MAD0 TOYOTA ABS 2017-A A3 2/15/21 12,673.50 0.00 1.73% 3/1/19 3/25/19 2,184 3136B1XP4 FNA 2018-M5 A2 9/25/21 2,184.48 0.00 3.56% 3/1/19 3/25/19 9,865 3137FKK39 FHMS KP05 A 7/1/23 9,864.97 0.00 3.20% 3/15/19 3/15/19 8,141 44931PAD8 HYUNDAI ABS 2017-A A3 8/15/21 8,140.89 0.00 1.76% 3/15/19 3/15/19 11,588 89238MAD0 TOYOTA ABS 2017-A A3 2/15/21 11,588.48 0.00 1.73% 3/15/19 3/15/19 13,675 02007HAC5 ALLY ABS 2017-2 A3 8/15/21 13,675.31 0.00 1.78% 3/15/19 3/15/19 11,993 43811BAC8 HONDA ABS 2017-2 A3 8/15/21 11,993.01 0.00 1.68%

PFM Asset Management LLC

26

46

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Activity

Trade Date Settle Date Maturity Date Par ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV) Coupon 175,369 175,369.49 0.00 Total PAYDOWNS SELL 1/7/19 1/9/19 200,000 17305EGH2 CCCIT 2017-A9 A9 9/20/21 199,511.88 2.36% (1,567.70) 1.80% 1/7/19 1/9/19 15,000 912828WS5 US TREASURY NOTES 6/30/19 14,946.29 2.47% (2.96) 1.62% 1/30/19 1/31/19 235,000 912828WS5 US TREASURY NOTES 6/30/19 234,519.21 2.46% (31.69) 1.62% 1/30/19 1/31/19 195,000 912828WL0 US TREASURY NOTES 5/31/19 194,896.45 2.44% 44.61 1.50% 2/7/19 2/8/19 150,000 9128285U0 US TREASURY N/B 12/31/23 151,449.60 2.48% 581.88 2.62% 2/8/19 2/12/19 220,000 912828S76 US TREASURY NOTES 7/31/21 213,164.07 2.45% (3,466.19) 1.12% 2/8/19 2/12/19 285,000 3135G0U35 FANNIE MAE NOTES 6/22/21 287,858.39 2.48% 1,822.36 2.75% 2/26/19 2/28/19 200,000 06539RGM3 MUFG BANK LTD/NY CERT DEPOS 9/25/19 201,057.59 2.66% (736.41) 2.07% 3/6/19 3/8/19 250,000 912828T67 US TREASURY NOTES 10/31/21 243,009.27 2.52% (5,572.18) 1.25% 3/6/19 3/8/19 225,000 89233HQE7 TOYOTA MOTOR CREDIT CORP COMM PAPER 3/14/19 224,907.75 2.46% 12.37 0.00% 1,975,000 1,965,320.50

• 8,915.91

Total SELL

PFM Asset Management LLC

27

47

Portfolio Holdings

48

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Holdings

Managed Account Detail of Securities Held

Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP Par Dated Date/Coupon/Maturity U.S. Treasury Bond / Note AA+ Aaa 8/30/2017 8/31/2017 300,210.55 1,600.83 301,996.66 297,315.53 1.64 US TREASURY NOTES DTD 10/31/2016 1.250% 10/31/2021 912828T67 305,000.00 AA+ Aaa 6/26/2017 6/28/2017 237,854.88 1,181.49 236,767.47 233,549.58 1.72 US TREASURY NOTES DTD 01/03/2017 2.000% 12/31/2021 912828U81 235,000.00 AA+ Aaa 7/5/2017 7/7/2017 373,750.78 944.75 376,060.30 372,251.42 1.88 US TREASURY NOTES DTD 02/02/2015 1.500% 01/31/2022 912828H86 380,000.00 AA+ Aaa 2/27/2017 2/28/2017 457,298.44 1,156.08 460,482.58 455,518.19 1.85 US TREASURY NOTES DTD 02/02/2015 1.500% 01/31/2022 912828H86 465,000.00 AA+ Aaa 1/2/2018 1/4/2018 197,031.25 621.55 197,807.61 197,679.60 2.22 US TREASURY NOTES DTD 07/31/2017 1.875% 07/31/2022 9128282P4 200,000.00 AA+ Aaa 4/2/2018 4/4/2018 485,878.91 25.61 488,862.87 494,062.50 2.54 US TREASURY NOTES DTD 10/02/2017 1.875% 09/30/2022 9128282W9 500,000.00 AA+ Aaa 9/4/2018 9/6/2018 243,408.20 1,335.46 244,234.63 248,974.50 2.78 US TREASURY NOTES DTD 12/31/2015 2.125% 12/31/2022 912828N30 250,000.00 AA+ Aaa 8/1/2018 8/3/2018 271,446.88 1,495.72 272,662.82 278,851.44 2.87 US TREASURY NOTES DTD 12/31/2015 2.125% 12/31/2022 912828N30 280,000.00 AA+ Aaa 10/1/2018 10/3/2018 118,945.31 362.57 119,598.36 122,768.50 2.95 US TREASURY NOTES DTD 02/01/2016 1.750% 01/31/2023 912828P38 125,000.00 AA+ Aaa 11/1/2018 11/6/2018 485,675.39 1,479.28 487,855.30 500,895.48 2.96 US TREASURY NOTES DTD 02/01/2016 1.750% 01/31/2023 912828P38 510,000.00 AA+ Aaa 2/8/2019 2/12/2019 298,580.86 12.70 298,930.75 301,257.07 2.44 US TREASURY NOTES DTD 03/31/2016 1.500% 03/31/2023 912828Q29 310,000.00 AA+ Aaa 2/8/2019 2/12/2019 299,237.70 652.62 299,683.42 302,153.99 2.44 US TREASURY NOTES DTD 08/01/2016 1.250% 07/31/2023 912828S92 315,000.00 AA+ Aaa 3/6/2019 3/8/2019 560,615.04 5,776.14 560,543.83 567,118.98 2.52 US TREASURY NOTES DTD 11/15/2013 2.750% 11/15/2023 912828WE6 555,000.00 AA+ Aaa 1/30/2019 1/31/2019 70,207.81 461.91 70,201.50 71,189.44 2.56 US TREASURY N/B DTD 12/31/2018 2.625% 12/31/2023 9128285U0 70,000.00 2.37 4,443,586.22 4,415,688.10 17,106.71 4,500,000.00 4,400,142.00 Security Type Sub-Total

PFM Asset Management LLC

28

49

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Holdings

Managed Account Detail of Securities Held

Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP Par Dated Date/Coupon/Maturity Supra-National Agency Bond / Note AAA Aaa 9/12/2017 9/19/2017 299,280.00 247.16 299,645.88 296,149.20 1.64 INTL BANK OF RECONSTRUCTION AND DEV NOTE DTD 09/19/2017 1.561% 09/12/2020 45905UP32 300,000.00 AAA Aaa 3/9/2018 3/16/2018 84,936.25 136.87 84,957.79 84,982.41 2.66 INTERNATIONAL FINANCE CORPORATION NOTE DTD 03/16/2018 2.635% 03/09/2021 45950VLQ7 85,000.00 AAA Aaa 7/18/2018 7/25/2018 289,321.40 1,506.39 289,471.21 292,804.01 2.83 INTL BANK OF RECONSTRUCTION AND DEV NOTE DTD 07/25/2018 2.750% 07/23/2021 459058GH0 290,000.00 AAA Aaa 2/21/2018 2/23/2018 191,252.00 165.28 193,275.26 196,191.60 2.78 INTER-AMERICAN DEVEL BANK DTD 09/14/2017 1.750% 09/14/2022 4581X0CZ9 200,000.00 2.40 870,127.22 867,350.14 2,055.70 875,000.00 864,789.65 Security Type Sub-Total Municipal Bond / Note AA- Aa3 4/18/2018 4/25/2018 175,007.00 2,450.00 175,003.49 176,580.25 2.80 CA ST TXBL GO BONDS DTD 04/25/2018 2.800% 04/01/2021 13063DGA0 175,000.00 2.80 176,580.25 175,003.49 2,450.00 175,000.00 175,007.00 Security Type Sub-Total Federal Agency Collateralized Mortgage Obligation AA+ Aaa 4/11/2018 4/30/2018 109,554.95 318.67 108,978.14 108,772.33 2.27 FNA 2018-M5 A2 DTD 04/01/2018 3.560% 09/25/2021 3136B1XP4 107,418.30 AA+ Aaa 4/4/2018 4/9/2018 156,319.92 399.13 155,976.85 157,252.20 2.61 FHLMC SERIES K721 A2 DTD 12/01/2015 3.090% 08/25/2022 3137BM6P6 155,000.00 AA+ Aaa 12/7/2018 12/17/2018 84,828.92 226.42 84,828.92 85,622.19 3.11 FHMS KP05 A DTD 12/01/2018 3.203% 07/01/2023 3137FKK39 84,829.17 2.63 351,646.72 349,783.91 944.22 347,247.47 350,703.79 Security Type Sub-Total Federal Agency Bond / Note

PFM Asset Management LLC

29

50

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Holdings

Managed Account Detail of Securities Held

Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP Par Dated Date/Coupon/Maturity Federal Agency Bond / Note AA+ Aaa 1/9/2019 1/11/2019 199,856.00 1,166.67 199,866.32 201,810.20 2.65 FANNIE MAE NOTES DTD 01/11/2019 2.625% 01/11/2022 3135G0U92 200,000.00 AA+ Aaa 4/6/2017 4/10/2017 99,551.00 916.67 99,723.55 98,901.60 1.97 FANNIE MAE NOTES DTD 04/10/2017 1.875% 04/05/2022 3135G0T45 100,000.00 AA+ Aaa 12/4/2018 12/6/2018 305,218.80 646.88 304,899.10 313,815.30 2.98 FEDERAL HOME LOAN BANK NOTES DTD 08/26/2013 3.375% 09/08/2023 313383YJ4 300,000.00 AA+ Aaa 1/7/2019 1/9/2019 335,039.25 700.78 334,584.09 339,966.58 2.67 FEDERAL HOME LOAN BANK NOTES DTD 08/26/2013 3.375% 09/08/2023 313383YJ4 325,000.00 AA+ Aaa 1/30/2019 1/31/2019 205,894.78 2,118.75 205,704.85 209,096.60 2.72 FEDERAL HOME LOAN BANKS NOTES DTD 12/09/2013 3.375% 12/08/2023 3130A0F70 200,000.00 AA+ Aaa 2/7/2019 2/8/2019 149,442.00 552.08 149,457.47 151,408.50 2.58 FANNIE MAE NOTES DTD 02/08/2019 2.500% 02/05/2024 3135G0V34 150,000.00 2.68 1,314,998.78 1,294,235.38 6,101.83 1,275,000.00 1,295,001.83 Security Type Sub-Total Corporate Note BBB+ A3 2/27/2017 3/2/2017 342,811.35 752.50 323,965.12 322,338.24 2.34 GOLDMAN SACHS GROUP INC CORP NOTES DTD 03/08/2010 5.375% 03/15/2020 38141EA58 315,000.00 AA- Aa3 4/11/2017 4/17/2017 204,905.70 1,821.08 204,966.55 203,641.47 1.97 TOYOTA MOTOR CREDIT CORP DTD 04/17/2017 1.950% 04/17/2020 89236TDU6 205,000.00 A+ A1 5/2/2017 5/5/2017 99,681.00 730.00 99,881.55 99,163.00 1.91 UNILEVER CAPITAL CORP BONDS DTD 05/05/2017 1.800% 05/05/2020 904764AV9 100,000.00 A+ A2 5/8/2018 5/11/2018 114,592.90 1,285.76 114,770.92 115,380.65 3.06 GENERAL DYNAMICS CORP DTD 05/11/2018 2.875% 05/11/2020 369550BA5 115,000.00 A A2 6/1/2017 6/6/2017 199,768.00 1,160.00 199,907.33 198,133.40 1.84 WALT DISNEY COMPANY CORP NOTES DTD 06/06/2017 1.800% 06/05/2020 25468PDU7 200,000.00 A A2 5/24/2017 6/5/2017 99,942.00 580.00 99,976.86 99,262.80 1.82 HOME DEPOT INC CORP NOTES DTD 06/05/2017 1.800% 06/05/2020 437076BQ4 100,000.00

PFM Asset Management LLC

30

51

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Holdings

Managed Account Detail of Securities Held

Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP Par Dated Date/Coupon/Maturity Corporate Note A A2 6/19/2017 6/22/2017 44,972.55 241.31 44,988.60 44,649.68 1.97 JOHN DEERE CAPITAL CORP NOTES DTD 06/22/2017 1.950% 06/22/2020 24422ETS8 45,000.00 A A2 7/17/2017 7/20/2017 84,914.15 326.90 84,962.11 84,143.80 1.98 AMERICAN HONDA FINANCE CORP NOTES DTD 07/20/2017 1.950% 07/20/2020 02665WBT7 85,000.00 A A1 6/8/2017 6/13/2017 198,642.60 593.94 196,609.35 194,890.22 1.94 STATE STREET CORP NOTES DTD 08/18/2015 2.550% 08/18/2020 857477AS2 195,000.00 A A3 9/5/2017 9/7/2017 149,874.00 208.13 149,939.07 148,315.65 1.88 CATERPILLAR FINL SERVICE NOTE DTD 09/07/2017 1.850% 09/04/2020 14913Q2A6 150,000.00 BBB+ Baa1 8/31/2017 9/6/2017 214,894.00 364.58 207,276.23 203,806.00 1.84 GENERAL ELECTRIC CAPITAL CORP CORP NOTE DTD 09/16/2010 4.375% 09/16/2020 36962G4R2 200,000.00 A+ A1 11/6/2017 11/13/2017 54,995.05 432.21 54,997.30 54,520.07 2.05 PACCAR FINANCIAL CORP NOTES DTD 11/13/2017 2.050% 11/13/2020 69371RN85 55,000.00 AA Aa2 10/11/2017 10/20/2017 299,565.00 1,678.33 299,759.86 297,406.80 1.95 WAL-MART STORES INC CORP NOTE DTD 10/20/2017 1.900% 12/15/2020 931142EA7 300,000.00 A A2 1/3/2018 1/8/2018 54,971.40 297.99 54,982.89 54,761.08 2.37 JOHN DEERE CAPITAL CORP NOTES DTD 01/08/2018 2.350% 01/08/2021 24422ETZ2 55,000.00 A A1 9/5/2017 9/8/2017 199,586.00 710.00 199,774.29 196,948.40 1.86 IBM CREDIT CORP NOTE DTD 09/08/2017 1.800% 01/20/2021 44932HAB9 200,000.00 A- A2 2/27/2017 3/2/2017 348,534.00 1,955.00 344,064.57 341,449.42 2.32 WELLS FARGO & CO CORP NOTE DTD 01/24/2014 3.000% 01/22/2021 94974BFR6 340,000.00 A A2 2/12/2018 2/15/2018 199,720.00 721.39 199,822.80 199,841.00 2.70 AMERICAN HONDA FINANCE DTD 02/15/2018 2.650% 02/12/2021 02665WCD1 200,000.00 A+ A1 2/22/2018 2/27/2018 104,948.55 245.00 104,966.62 105,341.46 2.82 PACCAR FINANCIAL CORP NOTES DTD 02/27/2018 2.800% 03/01/2021 69371RN93 105,000.00 A A2 3/8/2018 3/13/2018 99,932.00 151.74 99,955.13 100,480.20 2.90 JOHN DEERE CAPITAL CORP NOTES DTD 03/13/2018 2.875% 03/12/2021 24422EUD9 100,000.00 A+ A1 4/27/2017 5/4/2017 122,734.80 174.17 121,379.77 120,740.88 2.13 TEXAS INSTRUMENTS INC (CALLABLE) NOTE DTD 03/12/2014 2.750% 03/12/2021 882508AY0 120,000.00

PFM Asset Management LLC

31

52

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Holdings

Managed Account Detail of Securities Held

Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP Par Dated Date/Coupon/Maturity Corporate Note A A2 4/12/2018 4/19/2018 99,577.00 128.89 99,712.42 100,512.40 3.05 NATIONAL RURAL UTIL COOP NOTE DTD 02/26/2018 2.900% 03/15/2021 63743HER9 100,000.00 A A2 2/21/2018 2/26/2018 84,905.65 109.56 84,938.06 85,435.54 2.94 NATIONAL RURAL UTIL COOP NOTE DTD 02/26/2018 2.900% 03/15/2021 63743HER9 85,000.00 A+ A1 3/19/2018 3/22/2018 184,054.65 127.19 184,368.47 185,653.05 2.93 UNILEVER CAPITAL CORP NOTES DTD 03/22/2018 2.750% 03/22/2021 904764AZ0 185,000.00 A+ A1 11/9/2017 11/14/2017 159,747.20 1,640.00 159,847.36 158,586.08 2.10 UNITED PARCEL SERVICE CORPORATE BOND DTD 11/14/2017 2.050% 04/01/2021 911312BP0 160,000.00 BBB+ A3 2/27/2017 3/2/2017 344,227.20 3,833.33 344,608.61 342,756.12 2.56 MORGAN STANLEY CORP NOTES DTD 04/21/2016 2.500% 04/21/2021 61746BEA0 345,000.00 A A1 5/3/2018 5/10/2018 84,941.35 995.44 84,957.95 85,847.79 3.12 HERSHEY COMPANY CORP NOTES DTD 05/10/2018 3.100% 05/15/2021 427866BA5 85,000.00 A- A2 9/13/2017 9/18/2017 75,000.00 873.00 75,000.00 74,302.43 2.33 BANK OF AMERICA CORP (CALLABLE) DTD 09/18/2017 2.328% 10/01/2021 06051GGS2 75,000.00 BBB+ A3 10/27/2017 10/31/2017 343,556.40 3,094.94 342,349.56 339,909.90 2.63 CITIGROUP INC CORP (CALLABLE) NOTE DTD 12/08/2016 2.900% 12/08/2021 172967LC3 340,000.00 A- A2 6/19/2017 6/22/2017 96,153.70 901.71 91,997.70 91,496.38 2.64 BANK OF AMERICA CORP CORP NOTES DTD 01/24/2012 5.700% 01/24/2022 06051GEM7 85,000.00 A A1 6/7/2017 6/9/2017 197,373.15 760.50 196,466.51 194,888.07 2.32 BANK OF NY MELLON CORP (CALLABLE) NOTES DTD 02/07/2017 2.600% 02/07/2022 06406RAA5 195,000.00 A A2 11/27/2018 12/6/2018 79,780.80 216.67 79,799.03 81,816.00 3.34 HOME DEPOT INC DTD 12/06/2018 3.250% 03/01/2022 437076BV3 80,000.00 A- A3 8/29/2017 9/1/2017 208,518.00 1,319.44 205,849.85 202,723.80 2.20 COMCAST CORPORATION CORP NOTES DTD 07/02/2012 3.125% 07/15/2022 20030NBD2 200,000.00

PFM Asset Management LLC

32

53

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Holdings

Managed Account Detail of Securities Held

Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP Par Dated Date/Coupon/Maturity Corporate Note BBB+ A3 8/1/2018 8/3/2018 197,019.35 854.17 198,265.97 202,604.17 3.55 AMERICAN EXPRESS CREDIT (CALLABLE) NOTES DTD 08/01/2017 2.500% 08/01/2022 025816BM0 205,000.00 AA- Aa3 9/8/2017 9/12/2017 199,764.00 274.72 199,834.93 197,224.20 2.18 TOYOTA MOTOR CREDIT CORP NOTES DTD 09/08/2017 2.150% 09/08/2022 89236TEC5 200,000.00 AA- A1 9/26/2017 9/28/2017 199,446.00 191.11 199,608.58 197,885.00 2.21 VISA INC (CALLABLE) NOTE DTD 09/11/2017 2.150% 09/15/2022 92826CAG7 200,000.00 A+ A1 12/26/2018 12/28/2018 196,092.00 1,590.00 196,333.36 201,181.40 3.23 INTEL CORP CORP NOTES DTD 12/11/2012 2.700% 12/15/2022 458140AM2 200,000.00 A- A2 11/5/2018 11/7/2018 193,848.00 1,254.84 194,402.28 199,916.40 3.77 JPMORGAN CHASE & CO (CALLABLE) NOTES DTD 12/08/2016 2.972% 01/15/2023 48128BAB7 200,000.00 2.44 6,127,952.95 6,145,287.56 32,595.54 6,125,000.00 6,183,989.50 Security Type Sub-Total Commercial Paper A-1 P-1 8/1/2018 8/3/2018 490,763.89 0.00 499,131.95 499,063.00 2.55 BNP PARIBAS NY BRANCH COMM PAPER DTD 08/01/2018 0.000% 04/26/2019 09659CRS9 500,000.00 A-1 P-1 11/1/2018 11/1/2018 293,542.50 0.00 297,153.92 297,355.80 2.93 CANADIAN IMPERIAL HOLDING COMM PAPER DTD 11/01/2018 0.000% 07/29/2019 13607FUV6 300,000.00 A-1 P-1 11/5/2018 11/5/2018 244,375.00 0.00 247,437.50 247,663.75 3.07 JP MORGAN SECURITIES LLC COMM PAPER DTD 11/05/2018 0.000% 08/02/2019 46640QV24 250,000.00 2.78 1,044,082.55 1,043,723.37 0.00 1,050,000.00 1,028,681.39 Security Type Sub-Total Certificate of Deposit

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FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Holdings

Managed Account Detail of Securities Held

Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP Par Dated Date/Coupon/Maturity Certificate of Deposit A-1+ P-1 7/10/2018 7/11/2018 250,000.00 4,950.00 250,000.00 250,059.18 2.70 TORONTO DOMINION BANK NY CERT DEPOS DTD 07/11/2018 2.700% 07/10/2019 89113X5Z3 250,000.00 A-1+ P-1 7/11/2018 7/12/2018 300,000.00 5,939.42 300,000.00 300,072.63 2.71 ROYAL BANK OF CANADA NY CERT DEPOS DTD 07/12/2018 2.710% 07/11/2019 78012UEZ4 300,000.00 A-1 P-1 8/3/2017 8/4/2017 389,847.90 1,156.13 389,974.30 388,974.69 1.85 SKANDINAVISKA ENSKILDA BANKEN NY CD DTD 08/04/2017 1.840% 08/02/2019 83050FXT3 390,000.00 A-1 P-1 2/7/2018 2/8/2018 200,000.00 6,126.17 200,000.00 200,226.00 2.67 CREDIT SUISSE NEW YORK CERT DEPOS DTD 02/08/2018 2.670% 02/07/2020 22549LFR1 200,000.00 A-1+ P-1 2/20/2018 2/22/2018 200,000.00 619.56 200,000.00 200,443.40 2.72 NORDEA BANK AB NY CD DTD 02/22/2018 2.720% 02/20/2020 65590ASN7 200,000.00 A-1 P-1 3/2/2018 3/6/2018 350,000.00 789.44 350,000.00 351,127.35 2.93 UBS AG STAMFORD CT LT CD DTD 03/06/2018 2.900% 03/02/2020 90275DHG8 350,000.00 A+ Aa2 6/5/2018 6/7/2018 374,857.50 3,721.67 374,914.57 377,625.00 3.10 BANK OF NOVA SCOTIA HOUSTON CD DTD 06/07/2018 3.080% 06/05/2020 06417GU22 375,000.00 AA- Aa3 8/3/2017 8/7/2017 365,000.00 1,122.38 365,000.00 362,952.72 2.05 WESTPAC BANKING CORP NY CD DTD 08/07/2017 2.050% 08/03/2020 96121T4A3 365,000.00 A+ Aa2 8/1/2018 8/3/2018 300,000.00 6,406.58 300,000.00 301,425.00 3.23 BANK OF MONTREAL CHICAGO CERT DEPOS DTD 08/03/2018 3.190% 08/03/2020 06370REU9 300,000.00 A A1 10/16/2018 10/18/2018 299,592.00 4,661.25 299,907.24 304,192.50 3.46 SUMITOMO MITSUI BANK NY CERT DEPOS DTD 10/18/2018 3.390% 10/16/2020 86565BPC9 300,000.00 AA- Aa2 11/16/2017 11/17/2017 400,000.00 3,430.22 400,000.00 396,871.20 2.30 SWEDBANK (NEW YORK) CERT DEPOS DTD 11/17/2017 2.270% 11/16/2020 87019U6D6 400,000.00 A A1 2/27/2019 2/28/2019 200,000.00 528.00 200,000.00 201,499.40 2.99 MUFG BANK LTD/NY CERT DEPOS DTD 02/28/2019 2.970% 02/26/2021 55379WZT6 200,000.00

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FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Holdings

Managed Account Detail of Securities Held

Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP Par Dated Date/Coupon/Maturity Certificate of Deposit AA- Aa2 6/7/2018 6/8/2018 200,000.00 2,052.00 200,000.00 202,639.40 3.24 ROYAL BANK OF CANADA NY CD DTD 06/08/2018 3.240% 06/07/2021 78012UEE1 200,000.00 2.72 3,838,108.47 3,829,796.11 41,502.82 3,830,000.00 3,829,297.40 Security Type Sub-Total Asset-Backed Security AAA Aaa 3/7/2017 3/15/2017 125,056.40 96.17 125,063.89 124,474.85 1.74 TOYOTA ABS 2017-A A3 DTD 03/15/2017 1.730% 02/15/2021 89238MAD0 125,071.13 AAA Aaa 9/18/2018 9/26/2018 64,994.87 63.16 64,995.80 65,452.91 3.19 GMALT 2018-3 A3 DTD 09/26/2018 3.180% 06/20/2021 36256GAD1 65,000.00 AAA NR 3/22/2017 3/29/2017 111,429.85 87.17 111,431.57 110,816.17 1.76 HYUNDAI ABS 2017-A A3 DTD 03/29/2017 1.760% 08/15/2021 44931PAD8 111,438.87 AAA Aaa 6/20/2017 6/27/2017 177,602.33 132.62 177,608.65 176,377.39 1.68 HONDA ABS 2017-2 A3 DTD 06/27/2017 1.680% 08/15/2021 43811BAC8 177,617.69 NR Aaa 3/21/2017 3/29/2017 166,176.52 131.48 166,185.98 165,436.16 1.79 ALLY ABS 2017-2 A3 DTD 03/29/2017 1.780% 08/15/2021 02007HAC5 166,196.12 NR Aaa 7/11/2017 7/18/2017 59,995.61 48.53 59,997.19 59,618.86 1.82 JOHN DEERE ABS 2017-B A3 DTD 07/15/2017 1.820% 10/15/2021 47788BAD6 60,000.00 AAA Aaa 7/25/2017 8/2/2017 119,990.44 94.93 119,994.12 119,033.03 2.00 TOYOTA ABS 2017-C A3 DTD 08/02/2017 1.780% 11/15/2021 89237RAD0 120,000.00 AAA Aaa 6/20/2017 6/27/2017 154,993.10 116.42 154,995.79 153,915.98 1.69 FORD ABS 2017-B A3 DTD 06/27/2017 1.690% 11/15/2021 34531HAD1 155,000.00 AAA NR 8/15/2017 8/23/2017 144,998.13 112.78 144,998.82 144,114.67 1.75 ALLY ABS 2017-4 A3 DTD 08/23/2017 1.750% 12/15/2021 02007FAC9 145,000.00 NR Aaa 9/18/2018 9/21/2018 84,992.82 120.51 84,993.95 85,643.02 3.41 FORDL 2018-B A3 DTD 09/21/2018 3.190% 12/15/2021 34531LAD2 85,000.00 AAA NR 5/22/2017 5/30/2017 224,963.96 164.00 224,978.00 224,647.65 1.65 AMERICAN EXPRESS ABS 2017-4 A DTD 05/30/2017 1.640% 12/15/2021 02582JHG8 225,000.00 AAA Aaa 8/9/2017 8/16/2017 164,971.41 129.80 164,981.64 163,649.72 1.78 HYUNDAI ABS 2017-B A3 DTD 08/16/2017 1.770% 01/15/2022 44932GAD7 165,000.00

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56

FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Portfolio Holdings

Managed Account Detail of Securities Held

Original Cost Settle Date Trade Date Moody's Rating S&P Rating Accrued Interest Amortized Cost Market Value YTM at Cost Security Type/Description CUSIP Par Dated Date/Coupon/Maturity Asset-Backed Security AAA Aaa 2/22/2018 2/28/2018 174,977.37 205.33 174,983.33 175,093.49 2.65 HAROT 2018-1 A3 DTD 02/28/2018 2.640% 02/15/2022 43814UAC3 175,000.00 AAA NR 5/15/2017 5/22/2017 300,801.00 2,784.00 300,540.46 297,942.57 1.82 CITIBANK ABS 2017-A3 A3 DTD 04/11/2017 1.920% 04/07/2022 17305EGB5 300,000.00 NR Aaa 2/21/2018 2/28/2018 49,996.41 59.11 49,997.26 50,022.08 2.66 JDOT 2018-A A3 DTD 02/28/2018 2.660% 04/15/2022 47788CAC6 50,000.00 AAA Aaa 2/21/2018 2/28/2018 104,988.00 123.67 104,990.98 105,089.47 2.66 NAROT 2018-A A3 DTD 02/28/2018 2.650% 05/15/2022 65478DAD9 105,000.00 AAA NR 7/11/2018 7/18/2018 94,977.85 119.54 94,980.94 95,745.58 3.03 GMCAR 2018-3 A3 DTD 07/18/2018 3.020% 05/16/2023 36255JAD6 95,000.00 2.04 2,317,073.60 2,325,718.37 4,589.22 2,325,323.81 2,325,906.07 Security Type Sub-Total 20,453,518.63 20,502,571.28 107,346.04 20,446,586.43 20,484,156.76 2.47 Managed Account Sub Total Money Market Mutual Fund AAAm NR 115,091.33 0.00 115,091.33 115,091.33 CAMP Pool 115,091.33 115,091.33 115,091.33 0.00 115,091.33 115,091.33 Money Market Sub Total $107,346.04 $20,561,677.76 $20,599,248.09 Securities Sub-Total Accrued Interest $107,346.04 Total Investments $20,706,594.13 2.47% $20,617,662.61 $20,568,609.96

Bolded items are forward settling trades.

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FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Appendix

IMPORTANT DISCLOSURES

This material is based on information obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its accuracy, completeness or suitability. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation. All statements as to what will or may happen under certain circumstances are based on assumptions, some, but not all of which, are noted in the presentation. Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Past performance does not necessarily reflect and is not a guaranty of future results. The information contained in this presentation is not an offer to purchase or sell any securities. Dime

Ã

Market values that include accrued interest are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, Bloomberg, or Telerate. Where prices are not available from generally recognized sources, the securities are priced using a yield based matrix system to arrive at an estimated market value.

Ã

In accordance with generally accepted accounting principles, information is presented on a trade date basis; forward settling purchases are included in the monthly balances, and forward settling sales are excluded.

Ã

Performance is presented in accordance with the CFA Institute’s Global Investment Performance Standards (GIPS). Unless otherwise noted, performance is shown gross of fees. Quarterly returns are presented on an unannualized basis. Returns for periods greater than one year are presented on an annualized basis. Past performance is not indicative of future returns.

Ã

Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets.

Ã

Money market fund/cash balances are included in performance and duration computations.

Ã

Standard & Poorʼs is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings.

Ã

Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date, although, they may be called prior to maturity.

Ã

MBS maturities are represented by expected average life.

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FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Appendix

GLOSSARY

Ã

ACCRUED INTEREST: Interest that is due on a bond or other fixed income security since the last interest payment was made.

Ã

AGENCIES: Federal agency securities and/or Government-sponsored enterprises.

à AMORTIZED COST: The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until

the date of the report. Discount or premium with respect to short-term securities (those with less than one year to maturity at time of issuance) is amortized on a straight line basis. Such discount or premium with respect to longer-term securities is amortized using the constant yield basis.

Ã

BANKERS’ ACCEPTANCE: A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill as well as the insurer.

Ã

COMMERCIAL PAPER: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory.

Ã

CONTRIBUTION TO DURATION: Represents each sector or maturity range’s relative contribution to the overall duration of the portfolio measured as a percentage weighting. Since duration is a key measure of interest rate sensitivity, the contribution to duration measures the relative amount or contribution of that sector or maturity range to the total rate sensitivity of the portfolio.

Ã

DURATION TO WORST: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years, computed from cash flows to the maturity date or to the put date, whichever results in the highest yield to the investor.

Ã

EFFECTIVE DURATION: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years.

Ã

EFFECTIVE YIELD: The total yield an investor receives in relation to the nominal yield or coupon of a bond. Effective yield takes into account the power of compounding on investment returns, while nominal yield does not.

Ã

FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount.

Ã

INTEREST RATE: Interest per year divided by principal amount and expressed as a percentage.

Ã

MARKET VALUE: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date.

Ã

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

Ã

NEGOTIABLE CERTIFICATES OF DEPOSIT: A CD with a very large denomination, usually $1 million or more, that can be traded in secondary markets.

Ã

PAR VALUE: The nominal dollar face amount of a security.

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FAIRFIELD-SUISUN SEWER DISTRICT For the Quarter Ended March 31, 2019 Appendix

GLOSSARY

Ã

PASS THROUGH SECURITY: A security representing pooled debt obligations that passes income from debtors to its shareholders. The most common type is the mortgage-backed security.

à REPURCHASE AGREEMENTS: A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. à SETTLE DATE: The date on which the transaction is settled and monies/securities are exchanged. If the settle date of the transaction (i.e., coupon payments and maturity

proceeds) occurs on a non-business day, the funds are exchanged on the next business day.

Ã

TRADE DATE: The date on which the transaction occurred; however, the final consummation of the security transaction and payment has not yet taken place.

Ã

UNSETTLED TRADE: A trade which has been executed; however, the final consummation of the security transaction and payment has not yet taken place.

Ã

U.S. TREASURY: The department of the U.S. government that issues Treasury securities.

Ã

YIELD: The rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on an annualized basis.

Ã

YTM AT COST: The yield to maturity at cost is the expected rate of return based on the original cost, the annual interest receipts, maturity value, and the time period from purchase date to maturity, stated as a percentage on an annualized basis.

Ã

YTM AT MARKET: The yield to maturity at market is the rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on an annualized basis.

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Presentation Overview

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fSSD/City Agreement City Sewer System Sewer Maintenance Sewer Replacement funding Levels

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City of

Sewer Stats

FAIRFIELD

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City of Fairfield Sewer Responsibilities

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• 259 miles of mains (< 12-inches diameters)
• —30,000 laterals (176 miles of pipe)
• 4,420 manholes
• 2 lift stations (1 City station,

I fSSD station maintained by City)

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City of

Agreement between FSSD, FAIRFIELD

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Suisun City & Fairfield

Executed in 1965, last amended 2004 Cities collect sewer charges and remit to FSSD Cities receive compensation from

ESSI.) for billing activities

Cities responsible for all sewer mains less than 12-inches Cities receive funding from FSSD based on miles of sewer main Sewer Rate Structure

• Rates set by FSSD Board
• 5-year rate schedule approved through FY 2 1/22 with —3.6%

annual adjustment

• Sewer rates collected on City water bills

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Core Neighborhoods

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Sewer Conditions

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Most concern in neighborhoods constructed in 1950’s and 1960’s

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Vitrified Clay Pipe (VCP) installed until 1980’s; at least 48% of system VCP withstands chemical make-up of the sewage, but highly susceptible to root intrusion.

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Trees planted at the time the sewer lines were installed

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Trees mature and roots seek moisture in the sewer Roots attack the most vulnerable spot—the foints

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Fairfield Subdivisions

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Simplified F u n d i n g Need

FAIRHEIT)

California

For Pipeline Renewal

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Replacement

Methods to treat roots

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Mechanica

• Treatment
• 260 miles of pipe
• If assume 100 year life, should replace 2.6

miles ofpipe per year

• July 2018 Bid Results

equivalent to $425 per lineal foot

• For Fairfield, this equates to $5.8 millionlyr.

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City of

Sewer Replacement

FAIRFIELD

California

Sewer Replacement

I

Proaram Area

3

4/22/2019

• A. FSSD Allocates Existing/Future Reserves

Overview Seek increased funding from FSSD for FY 19/20, 20/21 and 21/22 under the current sewer rate structure; consider capital replacement in FSSD rates 22/23 and beyond Next Steps

• Initiate conversations with FSSD management

. Present to FSSD Board to seek direction on next steps

Items to

1. Likely reduces FSSD projected reserves

Consider

2,

Suisun City is currently taking steps to initiate a Condition Assessment in 2019

3.

Future rate setting at FSSD Board could consider sewer collection system replacement

4.

The state of the economy at the end of programmed adjustments in 2022 is unknown-will the economy impact the ability to adjust rates?

171

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Options to Consider

FAIRFIElD

California

• A. fSSD

allocates existing/future reserves

• B. Rate Adjustment—FSSD Board

3.f$SD

allocates new resources from rate adjustment Cities allocate General Fund

$ City controlled rate structure to generate

resources Status Quo

Overview jPursue a rate adjustment through the FSSD Board in 2019 to generate resources to address sewer replacement needs Prelim

• Seek FSSD Board approval to conduct a cost of service study and

Next Steps Prop 218 process to adjust rates

• Amend sewer agreement to increase allocated funding

Items to

1.

FSSD max rate adjustments approved for FY 17/18 through Consider 21/22, will adjustment in 2019 impact ability for future rate adjustments?

2.

Requires outreach to communicate the need for rate adjustment and that the 5-year rate schedule approved in FY 17/18 may increase.

3.

Suisun City is currently taking steps to initiate a Condition Assessment in 2019 18

4