NEW YORK POWER AUTHORITY INVESTMENT MANAGEMENT … Q15-5892MR Add1 NEW YORK POWER AUTHORITY...

Q15-5892MR Add1

NEW YORK POWER AUTHORITY

INVESTMENT MANAGEMENT CONSULTING SERVICES

INQUIRY NO. Q15-5892MR

ADDENDUM NO. 1

May 27, 2015

TO ALL CONCERNED:

The original Bidding Document for Inquiry No. Q15-5892MR is amended as noted in thisAddendum No. 1 and the Addendum shall become a part of the Bidding Document.

Q15-5892MR Add1

INVESTMENT MANAGEMENT CONSULTING SERVICES

INQUIRY NO. Q15-5892MR

ADDENDUM NO. 1

I. QUESTIONS/ANSWERS:

Q.1 Can you advise of the dates of the meetings the consultant would be expected toattend?

NYPA RESPONSE:On an as needed basis.

Q.2 Who is the current consultant?

NYPA RESPONSE:PFM Advisors

Q.3 Is the current consultant allowed to bid on this RFP?

NYPA RESPONSE:Yes.

Q.4 Does the current consultant have an MBE partner? If yes, what is name?

NYPA RESPONSE:Not currently.

Q.5 Is there anything you would like the new consultant to do differently, improveand/or provide additional services?

NYPA RESPONSE:Please refer to Scope of Services included in RFP.

Q.6 What annual fees were paid to the current or previous consultant for theseservices?

NYPA RESPONSE:This information does not pertain to improving Bidder’s response.

Q.7 Who is the custodian? Is New York Power Authority considering changingcustodians?

Q15-5892MR Add1

NYPA RESPONSE:BNY Mellon. The Authority is not considering changing at this time.

Q.8 Do you have any specific issues in regards to your current consultant?

NYPA RESPONSE:There is always room for improvement for any advisory firm.

Q.9 What do you think is the single most important characteristic of an investmentconsulting firm?

NYPA RESPONSE:The Authority would like to know your thoughts on that.

Q.10 How many in person meetings per year are anticipated? Do you have apreliminary schedule of the meetings?

NYPA RESPONSE:See response to question no. 1 above. Preliminary schedule to be determined.

Q.11 When was the last time the Plan performed a liability-based asset allocation studyfor the OPEB?

NYPA RESPONSE:At the inception of the Trust or 2007.

Q.12 Are you considering any new asset classes? Do guideline changes require approvalfrom the state of New York legislature and/or Entergy Corporate in regards to theOPEB and NDTs?

NYPA RESPONSE:OPEB is a possibility. NDT will most likely be as is.

Q.13 While the NYPA retains contractual decommissioning liability until licenseexpiration, does the NYPA anticipate any changes regarding responsibility of thedecommissioning fund should license extensions be approved for Indian Point?

NYPA RESPONSE:That decision would require mutual agreement between the Authority and Entergy.

Q.14 What is the most important investment issue you are currently facing?

NYPA RESPONSE:Please refer to the Scope of Work in the RFP for an overview of the investmentmanagement processes that the Authority considers to be important.

Q15-5892MR Add1

Q.15 The RFP established “an overall goal of 30% for M/WBE participation, 15% forMBE participation and 15% for WBE participation (based on the currentavailability of qualified MBEs and WBEs).” If our firm does not subcontract anyof our services, would that penalize us or affect us negatively, and/or exclude usfrom the RFP process? If we complete the Waiver Request form, is it required thatwe have every documentation item listed on the form? We do not have most ofthese items since we do not actively subcontract.

NYPA RESPONSE:ALL questions need not be answered, however, when completing the WaiverRequest Form, Bidder’s are to attach on its official company letterhead,justification why they cannot meet the goal requirements and indicate any and allgood faith efforts undertaken as indicated on the form. Include as well reason whythey are unable to subcontract. Be advised compliance and or lack of complianceis evaluative criteria in bid evaluations.

Q.16 Please provide a copy of your plan document.

NYPA RESPONSE:See attached Master Decommissioning Trust Agreement.

Q.17 Please provide a list of the investment managers, fund performance, asset classinformation and balance per fund as of 03/31/2015.

NYPA RESPONSE:See attached NDT Performance 03-31-15.

This Addendum No. 1 must accompany your bid when submitted.

Michele RomagnuoloMichele RomagnuoloSr. Procurement Specialist

I have read this Addendum No. 1 and have considered it in my proposal.

FIRM NAME: ___________

BY: _DATE: _____________________(Name-Signed)

BY: TITLE: ______________________(Name-Typed)

Return Type Account Name Benchmark Name

Account Number Benchmark Number

MarketValue % of Total Month 3 Months 6 Months YTD 1 Year 3 Years 5 Years

Annualized

TOTAL GROSS OF FEESNYPA NDT Combined NYDG40000000 1,434,414,371.43 100.00 -0.29 1.41 4.52 1.41 8.55 8.01 8.24

Mellon Cap Mgmt NYDF10000002 537,366,006.59 37.46 -1.58 0.96 5.89 0.96 12.69 16.15 14.49

Transition Account (form. JPM) NYDF20000202 283,864.18 0.02 -6.18 -8.53 -9.66 -8.53 -7.69 -1.35 1.68

Garcia Hamilton NYDF20000302 234,156,714.94 16.32 0.64 1.89 4.62 1.89 7.71 4.99

Prudential NYDF20000402 241,993,151.97 16.87 0.51 1.64 3.60 1.64 5.82 2.97

Bradford and Marzec NYDF20000502 133,749,213.08 9.32 0.59 1.78 3.75 1.78 6.04 3.28

Schroders NYDF20000602 127,615,766.69 8.90 0.34 1.47 3.28 1.47 5.72 2.76

CS McKee NYDF20000702 159,249,653.98 11.10 0.39 1.63 1.63Barclays U.S. Aggregate BondIndex

IX1F0000193C 0.46 1.61 1.61

JPM Composite NYDG00200000 283,864.18 0.02 -6.18 -8.44 -10.15 -8.44 -8.19 -1.53 1.61

NYPA Fixed Combined NYDG20000000 897,048,364.84 62.54 0.50 1.68 3.69 1.68 6.10 3.32 4.57

Equity Combined NYDG00100000 537,366,006.59 37.46 -1.58 0.96 5.89 0.96 12.69 16.15 14.49

Additional BenchmarksBarclays U.S. Aggregate BondIndex

IX1F0000193C 0.46 1.61 3.43 1.61 5.72 3.10 4.41

Barclays U.S. Government/CreditIndex

IX1F0000198C 0.50 1.84 3.69 1.84 5.86 3.35 4.75

S&P 500 - Total Return Index IX1F0000060C -1.58 0.95 5.93 0.95 12.73 16.11 14.47

FIXED INCOMENYPA NDT Combined NYDG40000000 847,485,994.68 100.00 0.52 1.74 3.86 1.74 6.34 3.43 4.71

Transition Account (form. JPM) NYDF20000202 283,864.18 0.03 -9.16 -11.44 -13.96 -11.44 -12.05 -2.89 0.80

Garcia Hamilton NYDF20000302 218,232,049.26 25.75 0.65 1.92 4.70 1.92 7.84 5.09

Prudential NYDF20000402 241,337,181.66 28.48 0.52 1.67 3.67 1.67 5.90 3.01

Bradford and Marzec NYDF20000502 131,027,276.01 15.46 0.61 1.83 3.87 1.83 6.19 3.35

Total Performance Summary

3/31/2015

Report ID: IPM0005

Reporting Currency: USD

Page 1 of 3 Source: The Bank of New York Mellon Corporation4/21/2015 9:28:04 AM EDT