City of Tulsa Purchasing

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					                                Addendum #1
                                        RFP 04-701
                                     Consulting Services
                                       August 6, 2004
Please note the following changes which have been made for clarification to this Invitation
For Sealed Bid. This addendum must be listed included with your proposal package to be
eligible for consideration of award.

Can you provide us with a list of your current managers? This will help us gauge the extent of work needed in
the first year if in our opinion some of those managers need to be replaced with better choices.

Large Cap (Domestic) Equity – Lotsoff Capital and State Street
Small Cap (Domestic) Equity – Ark Asset Management and Westcap Investors
International Equity – BGI Index, Templeton Foreign & Vanguard International
Fixed Income – BGI US Debt Index and Seix Investment Advisors
Real Estate – J.P. Morgan Real Estate
Cash (Contribution Account) - Bank One Group Money Market Account

1.    Why is the fund conducting a search for an investment consultant?
      It is the Trustees fiduciary responsibility to check the market to ensure the fund is receiving the
      best service at the best price.

2.    How many consulting firms received RFPs in this process? A minimum of fifteen

3.    Has a budget or maximum fee level for the investment consultant’s retainer fee been established?
4.    If so, what is the budgeted amount? Not applicable

5.    The RFP contemplates quarterly meetings and a one-day educational seminar in January. Is the
      seminar held in conjunction with a quarterly meeting or is it held separately? Are there other
      meetings in a “normal” year that the MERP’s investment consultant would be expected to attend?

      The trustee education is separate from the quarterly presentations. In the event there is a
      manager search, the consultant would be expected to attend the interviews.

6.    The RFP states that travel expenses will not be reimbursed. Does this include investment
      manager due diligence visits made by the consultant at the request of the MERP?

      The MERP has yet to ask its consultant to make a due diligence visit. It is expected due diligence
      visits is a normal function the consultant performs on a regular basis.

                                                  Page 1 of 21
7.   The fund presently has 8% of assets invested in real estate. In what type of vehicle(s) are these
     investments held, i.e., direct property ownership, commingled funds, or limited partnerships?
     Please explain.

     We participate in the J.P. Morgan Commingled fund

                                               Page 2 of 21
                                   RFP 04-701
                        Description: Consulting Services

                                Department: MERP

               NIGP Commodity Code(s): 918-49-00-000-0

                    Note: Faxing of Proposal Not Accepted

Important Instruction – Read Carefully:

If you have obtained these bid specifications from either of:
      City of Tulsa's Fax-on-Demand (918-596-1171) or
       City of Tulsa's Website :

   you must notify the buyer Patricia Cummings of your intent to bid by
   e-mail at in order to receive addenda. The buyer
   will always acknowledge your e-mail for your records. All addenda
   will be posted on fax-on-demand and the website.

                                        Page 3 of 21
                                    TABLE OF CONTENTS

Pay special attention to those pages with a reference to the following notes:

      Note #1: Signature of authorized agent required

      Note #2: Signature of an authorized agent and notarized required

Table of Contents                                                               2

Invitation for Sealed Proposal              ( Note #1 )                         3

Interest Affidavit                          ( Note #2 )                          4

Bidder Affidavit                            ( Note #2 )                          5

Contractor Information Sheet                                                    6

Price Summary                                                                   7

Specifications                                                                  8-10

Attachment I                                                                    11-18

Attachment II                                                                   19

         Your bid response should follow the same format listed above plus any additional
                        format requested in the body of the bid invitation.

                                             Page 4 of 21
                                     INVITATION FOR SEALED PROPOSAL
                                                City of Tulsa
                                     200 CIVIC CENTER, ROOM 109, TULSA, OKLAHOMA 74103

                                Bid number and date of bid opening must appear on the lower
                                left outside corner of bid envelopes and all related containers .

DATE OF OPENING:               August 19, 2004                                    BID NUMBER: RFP 04-701




Bid must be accompanied by bidder’s bond, cashier’s check or certified check in the amount of:____ NONE__________


Enclosed is a [ ] BID BOND ; [ ]CASHIER’S CHECK; [ ] Certified Check in the amount of $____-0-________________, which
I agree the City of Tulsa may retain as liquidated damages in the event of my failure to comply with the terms of this bid.

                               MUST BE SIGNED BY AUTHORIZED AGENT TO BE VALID

FIRM NAME _____________________________________________________________ by ___________________________________________________
                                                                            SIGNATURE OF AUTHORIZED AGENT

STREET ________________________________________________________________ TITLE ________________________________________________

CITY STATE________________________________ZIP CODE______________PHONE NUMBER_________________________DATE_______________

                                                          Page 5 of 21
                                           INTEREST AFFIDAVIT

STATE OF ________           }
                            } ss
COUNTY OF _______           }

________________________________________, of lawful age, being first duly sworn, states that s(he) is the agent
authorized by the bidder to submit the attached bid. Affiant further states that no officer or employee of the City of
Tulsa either directly or indirectly, owns a twenty-five percent (25%) interest in the bidder's business or such a
percentage which constitutes a controlling interest. Affiant further states that the following officers and/or employees
of the City of Tulsa have some direct or indirect interest in the bidder's business:

                                            By _________________________________


Subscribed and sworn to before me this ________day of ______________, 20_____.


                                           NOTARY PUBLIC SIGNATURE

My Commission Expires:


          The Interest Affidavit must be completed, signed by an
                     authorized agent, and notarized.

                                                       Page 6 of 21
   BIDDER AFFIDAVIT - TITLE 74 O.S. (1974 SUPP.) 85.22-85.25

  STATE OF ________________   COUNTY OF ____________________

   _____________________, of lawful age, being first duly sworn on oath says
       Authorized Agent

             1. (s)he is the duly authorized agent of _________________________________________, the bidder submitting
                 the competitive bid which is attached to this statement, for the purpose of certifying the facts pertaining to the
                 existence of collusion among bidders and between bidders and municipal officials or employees, as well as facts
                 pertaining to the giving or offering of things of value to government personnel in return for special consideration
                 in the letting of any contract pursuant to the bid to which this statement is attached.

            2. (s)he is fully aware of the facts and circumstances surrounding the making of the bid to which this statement
                is attached and has been personally and directly involved in the proceedings leading to the submission of
                                                                such bid; and

            3. neither the bidder nor anyone subject to the bidder's direction or control has been a party;
                    a. to any collusion among bidders in restraint of freedom of competition by agreement to bid at a fixed
                        price or to refrain from bidding,

                   b. to any collusion with any municipal official or employee as to quantity, quality or price in the prospective
                      contract, or as to any other terms of such prospective contract, nor

                   c.   in any discussions between bidders and any municipal official concerning exchange of money or other
                        thing of value for special consideration in the letting of a contract.



   Subscribed and sworn to before me this _________day of ______________, 20______.

       _____________________________________________                              __________________________

                        Signature of Notary Public                                     MY COMMISSION EXPIRES

           The Bidder Affidavit must be completed, signed by an
                      authorized agent, and notarized.

                                                               Page 7 of 21
Project No. or Description       _____________________________


Full Name of Bidder              _____________________________

Legal Identity                   _____________________________
(Corporation, Partnership,
Individual, etc.)

Address                          _____________________________


Telephone No.                    _____________________________

FAX No.                          _____________________________

Taxpayer Identification Number   _____________________________

Contact Person                   _____________________________

       Phone No.                 _____________________________

      Fax No.                    _______________________________

      E-mail address             _____________________________

      Webpage Address            _____________________________

                                     Page 8 of 21
                                         RFP 04-701

The Municipal Employees' Retirement Plan Board (herein called "the Board") is requesting
proposals from qualified firms for investment consulting services in connection with its defined
benefit plan. The object of the consulting firm will be to assist the Board of Trustees, in
developing and carrying out investment policies that are designed to ensure sufficient assets are
available to meet current and future benefit obligations.

You are invited to submit a proposal to the City of Tulsa, Municipal Employees' Retirement Plan
Board, Oklahoma, in accordance with the terms, conditions, and instructions as set forth in this
Request for Proposal. No commissions or brokerage fees will be paid by the Board in the
selection or employment of a consultant.


1.    The firm and its personnel who will be servicing the account must have a minimum of five
      (5) years practical experience in performance evaluation and consulting. The firm must
      also have five (5) years practical experience in preparing RFP's and evaluating custodial
      and investment manager searches.

2.    Each proposal package must be sealed and include fifteen (15) copies of the completed
      proposal. All proposals must be received by 5:00 p.m. on August 18, 2004, and should
      be addressed as follows:

                                  Deputy City Clerk
                                Attn: Ms. Dana Burks
                                   200 Civic Center
                                 City Hall, Room 109
                               Tulsa, Oklahoma 74103

3.    Late proposals will be returned unopened.

4.    Your response must include:

             <      a copy of your standard contract,
             <      the latest Financial Report of Your Firm
             <      the completed Interest Affidavit,
             <      the completed Bidder Affidavit,
             <      the completed "MERP" Questionnaire, Attachment #1
             <      the completed Pricing Page, Attachment #2,

      If these items are not included with the returned response, your proposal will not be
      accepted for review.

                                         PAGE 9
5.    All proposals submitted shall be made on behalf of a company licensed to do business in
      the State of Oklahoma. An authorized officer or agent of the organization shall sign all

6.    All terms and conditions within the proposal must remain in effect until at least January 1,
      2005 to allow sufficient review, negotiation and approval time by the Board.

7.    In an effort to clarify any issues in this Request for Proposal the MERP will respond only to
      questions that are presented in writing via U.S. or electronic mail or by facsimile.
      Questions received after July 29, 2004 will not be answered. These questions will be
      consolidated into a single Q & A document and distributed to all proposers. Please submit
      questions to:

      Mailing Address:            Patricia Cummings
                                  City of Tulsa
                                  200 Civic Center, Room 802
                                  Tulsa, OK 74103
      Office:                     918/596-7561
      Facsimile:                  918/699-3021
      E-Mail Address    

8.    The agreement will between the MERP Board and the vendor. The term of the agreement
      will be January 1, 2005 through December 31, 2005, with four (4) one-year renewal

9.    Proposers are required to answer all questions contained within this request for proposal.
      Deviations, omissions, or substitutions may invalidate the proposal. The Board may
      request clarification of any portion of the proposal. It is each proposer’s responsibility to
      verify the proposal before submission, as requests for amendments to proposals will not be

10.   The proposer agrees to indemnify, defend and save harmless the MERP and the City of
      Tulsa, its officers, employees and agents from and against all losses, costs and expenses,
      including attorney fees, claims, suits and judgments, whatsoever, in connection with injury
      to or death from any person or persons or loss or damage to property resulting from, any
      and all operations performed by the proposer, its officers, employees and agents under
      any of the terms of any agreement which may result from acceptance of a proposal.

11.   It is understood that the information and any accompanying data in this proposal are for the
      purpose of obtaining proposals and do not necessarily constitute an order for placement for

                                         PAGE 10
12.   All expenses for mailing proposals are to be borne by the proposer. The proposals will
      become the property of the Board. Proposers may be asked to make a presentation
      before the Board if selected as a finalist and none of the costs associated with this
      presentation will be reimbursed by the MERP.

13.   The Board reserves the right to make an on-site visit to confirm the proposer’s responses
      to this Request for Proposal.

14.   All applicable laws and regulations of the United States of America, State of Oklahoma,
      and the Charter, Ordinances and Regulations of the City of Tulsa will apply to any resulting


The final approval of the selected provider will be subject to the final determination of the
Municipal Employees’ Retirement Plan Board and will be contingent on the successful completion
of a contract between the Board and the successful proposer. Contracts governed by the laws of
the State of Oklahoma are strongly preferred.


1.    Authority of the Board. The Board shall have the authority to award contracts within the
      purview of this chapter.

2.    Contracts shall be awarded to the proposer meeting the specifications. In addition to price,
      the following factors shall be considered.

      a.     the ability, capacity, and skill of the proposer to perform the contract or provide the
             service required;

      b.     whether the proposer can perform the contract or provide the service promptly or
             within the time specified, without delay or interference;

      c.     the character, integrity, reputation, judgement, experience, and efficiency of the

      d.     the quality of performance of previous contracts or services;

      e.     the previous and existing compliance by the proposer with laws and ordinances
             relating to the contract or service;

      f.     the sufficiency of the financial resources and ability of the proposer to perform the
             contract or provide the service;

      g.     the quality, availability and adaptability of the supplies or contractual services to the
             particular use required;

                                         PAGE 11
     h.      the ability of the proposer to provide future maintenance and service for the use of
             the subject of the contract; and,

     i.      the number and scope of conditions attached to the proposal.

3.   The Board reserves the right to refuse any and all proposals.


1.   The Board is charged with the investment of approximately $310 million in pension assets.
     The fund services approximately 2,700 active and 1,189 retired participants. The Fund's
     RETIREMENT PLAN of Title 28 of the Ordinances of the City of Tulsa.

2.   The Board is made up of seven (7) members appointed by the Mayor and meets monthly.
     The Fund has a staff of 2 which is supervised by the Manager of Insurance and Retirement

3.   The strategic asset allocation as of March 31, 2004 is as follows:

                         Domestic         Fixed         Cash            Real      International
                          Equity         Income       Equivalents      Estate       Equities
                          33-47%         32-42%          1-3%          6-10%         10-15%
                            43%            33%            1%              8%           15%

4.   The actuarial report as of January 1, 2004 showed that the plan is 102% funded based on
     an assumed interest rate of 8%.

5.   The Fund currently uses ten investment managers.             One manager has both an
     international equity and a fixed income fund.

6.   The current Performance Evaluation and Consulting Service fee arrangement is a flat rate
     of $57,800.00 per year.

7.   A copy of the Board's current “Investment Policy Guidelines and Objectives Statement” is
     available on request.

                                        PAGE 12

The Board is seeking the services of an Investment Management Consultant for its $310 million
pension fund to assist it on an on-going basis in the selection, monitoring and evaluation of its
investment managers and programs. Services are to include, but are not limited to, the following:

1.   CONSULTANT'S SERVICES - The continuing and ongoing consulting services relative to
     performance evaluation of the investment advisor(s) which are sought by the Board.

     a.   Investment Objective and Policy Statements – Review the investment statement of
          policy, guidelines and goals for the MERP. This document details the priorities,
          investment alternatives and acceptable asset classes while providing specifications for
          investment quality, liquidity and risk. Time horizons and minimum performance
          objectives should also be reviewed. The consultant will conduct an annual review of
          the document and recommend relevant changes.

     b.   Asset/Liability Evaluation - Consultant will annually relate the requirements of the fund
          (cash flows, contributions and disbursements based on annual actuarial valuation and
          assumptions) to the asset allocation and investment manager selection decisions.

     c.   Portfolio Construction - Based on the agreed upon investment objectives, guidelines
          and policies, provide recommendations on the appropriate asset mix for the MERP.
          Some of the factors which will be considered are cash flow forecasts, estimates of
          asset class investment returns and inflation, potential changes in benefit structure
          and/or actuarial assumptions, risk and comparison to other similar pension funds.

     d.   Investment Manager/Custodial Services and other related Searches and Selections -
          After expression by the Board of the need to initiate the search and selection process,
          Consultant shall develop and recommend suitable criteria to be utilized in selection of
          an investment manager. The criteria will include organizational and investment
          approach characteristics plus determination of type of manager needed, i.e. Equity
          Specialist, Balanced Manager, etc.. Consultant shall conduct the initial screening
          process including individual interviews. Consultant will present three to six finalists to
          the Board. Consultant will provide comprehensive and qualitative evaluation assistance
          in the final selection process.

     e.   Training and Development - Consultant will conduct each January a full day training
          session for new and current Board members. The training session will be conducted
          locally and at the consultant’s expense. Included will be familiarization with current
          terms and investment methodology. Consultant will supply Board members with
          supplementary investment informational materials on a selective basis. Consultant will
          keep the Board abreast of important economic and financial developments, to include
          any financial and/or fiduciary impact to the MERP.

     f. Performance Evaluation and Reporting - In-depth investment monitoring service which
        includes quarterly consulting visits focusing on such topics as defining performance. The
        consultant shall provide written quarterly investment reports including but not limited to,

                                         PAGE 13
         an analysis of investment by manager and asset class/subclass, identifying performance
         for quarter, year, three and five year periods, with any attributing factors regarding
         investment performance. The consultant shall also provide a narrative report detailing
         conclusions and any actions necessary to address any problems or developments. The
         reports will compare the investment performance of the MERP with a universe of public
         funds of comparable size with similar investment objectives and restrictions and also to
         appropriate national indices. Special reports may be required from time to time regarding
         events or developments that could or did materially affect the fund.

     g. Meetings – The consultant will attend quarterly investment meetings of the Board and
        any special meeting as may be requested by the Board and present required or relevant
        reports and information. Consultant shall personally present the quarterly investment
        reports to the Board.


It is vitally important that the Board be able to accurately budget the future costs of the Retirement
Plan. Therefore, the Board is looking for preferably a five (5) year rate guarantee for Performance
Evaluation and Consulting Services.

The Board reserves the right to renew the contract for four (4) additional one-year periods
following the initial contract period, renewable annually on consent of both parties involved, or to
cancel with a thirty (30) day written notice. The initial contract shall be for the period January 1,
2005 through December 31, 2005.


1.     Include as an addendum item a sample of your firm's standard reports. How soon are
       quarterly reports available after the end of each quarter?

2.     Provide your annual fee schedule for 2005, 2006, 2007, 2008 and 2009 on the Pricing
       Page, Attachment #2.

3.     All proposals received will be reviewed and evaluated by a committee appointed by the
       Board. The committee will recommend to the Board the proposals which most closely
       meet the requirements of the RFP and satisfy the requirements of the MERP. The final
       evaluation and selection will be made by the Board. The Board reserves the right to reject
       all proposals, or to negotiate separately with competing proposers. Finalists may be asked
       to make oral presentations to the Board or the selection committee of the Board. The
       consultant servicing the account will need to be present for the interview.

4.     The Board is not liable for any cost incurred by proposers prior to execution of a contract.

                                           PAGE 14
                                                                      ATTACHMENT #1



      1.    Provide your Company's address and telephone number and the name of
            the primary RFP contact person.

      2.    Give a brief history of your firm, including year of organization, current
            ownership and affiliations. Are ownership changes anticipated at this

      3.    Provide an organizational chart detailing the organizational structure as it
            relates to the parent, any subsidiaries, affiliates and/or joint ventures.

      4.    How many years your firm has provided consulting services to public
            pension plans?

      5.    How many public fund clients do you have? What are the total assets of
            this client set?

      6.    Is your firm a registered investment advisor with the SEC under the
            Investment Advisor's Act of 1940? If yes, provide a copy of the latest
            Form ADV Part II.

      7.    When was the last time your firm was audited by the SEC? What was the
            outcome of that audit?

      8.    Does your firm have a peer review program for consultants similar to that
            of auditors and actuaries? If so, please describe.

      9.    Please describe the level of coverage for errors and omissions insurance
            and any other fiduciary or professional liability insurance your firm

      10.   Does your firm manage money or act as a broker dealer? Does your firm
            have a brokerage division or subsidiary that executes trades? Do you
            receive compensation directly or indirectly? What is the compensation
            received by the brokerage division or subsidiary for clients of the firm for
            each of the last five years? How do you prevent conflicts of interest?

                                    PAGE 15
11.   Detail any financial relationships which exist with affiliated or other
      organizations; e.g. brokerage firms, insurance companies, commercial
      banks, investment banking firms, money management firms, transition
      management firms, mutual fund companies, and any soft dollar
      relationships, etc.

12.   For the most recent calendar year, provide the percent breakdown of
      revenues received from consulting services versus the different services
      provided by your firm.

13.   Does the firm, its affiliates, or the ultimate parent of the firm accept soft
      dollars as a method of payment for services or referrals? If so, please
      provide detail. What are the fees? How do you prevent conflicts of

14.   Once a client’s consulting fees are paid in full for a given year, how are
      the additional commissions allocated?

15.   Has any officer or principal of your organization been involved in litigation
      relating to consulting activities? If so, provide a brief explanation and
      indicate the current status of the proceedings.

16.   Have there been any complaints filed against your firm with any State
      Regulatory Board, the Securities and Exchange Commission, the National
      Association of Securities Dealers, or any other investigating body? If so,
      provide a brief explanation and indicate current status.

17.   Explain any potential for conflict your firm would have in servicing the

18.   Describe any and all sources of direct or indirect fees, commissions or
      other remuneration for services other than investment consulting.

19.   Describe your plans for managing the future growth of your firm.

20.   List references for three public pension plans with assets equal to or over
      $200 million for whom you have provided primary consulting services.
      For each reference listed include name, address, telephone number and
      the name of the contact person. In addition, for each client referenced
      include the number of managers being monitored, fund diversification by
      asset class and the total number of dollars under management. The
      Board may contact the references.

                               PAGE 16

       1.   List the name and location of primary individual(s) who will be
            responsible for our account. Provide brief biographies including years in
            the industry and the years with your firm. Identify and explain the role of
            backup personnel. Provide a breakdown of all employees by department
            and/or function. How many clients are served by the individual(s)
            assigned to this account?

       2.   What policies are in effect to control the workload as it relates to the
            number of clients serviced by each manager? Are there limits on the
            number of clients assigned to consultants? If so, please provide the limit.

       3.   Does your firm act as a fiduciary when serving as a pension fund

       4.   Describe the turnover in key professional personnel in each of the last
            three years. Indicate the number of people lost in the Client relationship
            managers and key technical personnel categories.

       5.   Submit an organizational chart of your consulting unit.


       1.   List all the standard services provided in a typical pension plan consulting
            and performance evaluation relationship. List special services that you
            have provided to meet other needs of your clients.

       2.   Briefly summarize your philosophy relating to the consultant's relationship
            with Board, staff and money managers.

       3.   Describe the services of your organization that distinguishes your firm
            from other consultants.

       4.   Indicate the approximate market value of your client's investments in
            various asset classes.

       5.   Describe your method of developing asset/liability modeling capability.

       6.   How many asset/liability studies did you perform in the last calendar
            year? How many asset allocation studies (no interaction with the
            liabilities)? Describe the team that conducts the studies.

       7.   Describe your portfolio structure analysis.

       8.   Describe your transaction cost analysis.

                                    PAGE 17
      9.    Describe your investment style analysis.

      10.   Describe your experience and capabilities in conducting investment
            manager searches. How many searches were for clients with over $200
            million in assets? How many different managers were recommended by
            you in each of the last two years in each asset category?

      11.   Describe your manager search process.


      1.    Describe your method for developing investment policy objectives for a
            diversified pension plan.

      2.    Comment on your process for analyzing a client's portfolio structure and
            for recommending modifications.

      3.    Describe the manner in which you assist Boards in monitoring investment
            policy, strategy and asset mix.


      1.    Is your manager database proprietary or do you use an outside vendor?

      2.    Are managers assessed a fee to be included in the database? How do
            managers participate in the database?

      3.    Do you sell your investment manager database information? Do you
            receive any compensation directly or indirectly? How do you prevent
            conflicts of interest?

      4.    How many managers/advisors are tracked on your database? How many
            funds are tracked? How many years of usable data are in the database?
            Of the clients listed on the database please list the number of public fund
            clients tracked. Please specify the source of data and if simulated returns
            are included.

      5.    Describe the investment manager information you have in your database.
            Describe your method of determining the style of managers. How do you
            monitor consistency of style? How often are managers in your database
            visited by your firm, reviewed, and the database updated?

      6.    Describe your approach to due diligence for evaluating money managers.

                                    PAGE 18
      7.    Do you provide a written summary of managers and total portfolio

      8.    What asset categories are tracked in your performance measurement

      9.    Describe how performance is computed. Describe in detail the source
            and the size of the universe? What are the sizes of the funds which are
            to be compared? Specify the number of public funds over $200 million in

      10.   Describe the flexibility available to customize reports. Does your system
            offer your clients on-line access to reports? Are there any interactive

      11.   Briefly describe how a client would transition to your services.

      12.   Do you provide transaction cost analysis service? If so, describe your

      13.   Describe the methods and resources used for customizing and tracking
            benchmarks used to analyze and evaluate portfolio performance.

      14.   Does your firm have a website? If so, would the client be able to access
            for general investment information and research? Briefly describe the
            contents of the website.


      1.    Provide a list of all reports routinely provided a client. Include as an
            addendum item a sample of your firm's standard reports.

      2.    How soon are quarterly reports available after the end of each quarter?

      3.    Do you normally provide written narrative on managers’ performance,
            portfolio restructuring, investment guideline discrepancies, style
            deviations or other areas?


      It is vitally important that the Board be able to accurately budget the future
      costs of the Retirement Plan. Therefore, the Board is looking for a five year
      rate guarantee for Performance Evaluation and Consulting Services.

      The Board reserves the right to renew the contract for four (4) additional one-
      year periods following the initial contract period, renewable annually on consent

                                    PAGE 19
of both parties involved, or to cancel with a thirty (30) day written notice. The
initial contract shall be for the period January 1, 2005 through December 31,
2005, renewable through December 31, 2009.

1.    Describe any and all of the direct or indirect fees, commissions or other
      remuneration for services. Note: No fees will be reimbursed for travel
      and out-of-pocket expenses.

2.    Provide your fee schedule on the Pricing Page, Attachment #2 for:

            a) 2005
            b) 2006
            c) 2007
            d) 2008
            e) 2009

All proposals received from bidders will be reviewed and evaluated by a
committee appointed by the Board of Trustees. The committee will recommend
to the Board the proposals which most closely meet the requirements of the
RFP and satisfy the requirements of the MERP. The final evaluation and
selection will be made by the Board of Trustees. The Board reserves the right
to reject all proposals, or to negotiate separately with competing bidders.
Finalists may be asked to make oral presentations to the Board and/or the
selection committee of the Board. The consultant servicing the account will
need to be present for the interview.

                              PAGE 20
                                                         ATTACHMENT 2

Performance Evaluation and Consulting Services
Price Sheet Summary

DATE:           ____________________________________, 2004

VENDOR NAME: ________________________________

SIGNATURE:           _________________________________

Annual Fee Schedule for:

     A.   January 1, 2005    _______________

     B.   January 1, 2006    _______________

     C.   January 1, 2007    _______________

     D.   January 1, 2008    _______________

     E.   January 1, 2009    _______________

TOTAL 5-YEAR FEES:                $__________________________

                            PAGE 21

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