Columbus, Georgia

MINUTES OF THE

BOARD OF TRUSTEES MEETING OF THE

COLUMBUS GEORGIA EMPLOYEES' PENSION PLAN



October 5, 2005





A meeting of the Board of Trustees for the Columbus Georgia Employees? Pension

Plan was held October 5, 2005 at 2:00 P.M. in the Mayor?s Conference Room.





PRESIDING: Morton Harris, Trustee



PRESENT: Isaiah Hugley, Franklyn Lambert, Mary Strozier-Weaver, Harvey

Milner, and Assist. Chief David Arrington



ABSENT: Mayor Bob Poydasheff, Angela Cole, Dan Gray, Alan Rothschild,

Jr., and Joe Smith,



GUESTS: Henry Swift, Vice President (Salomon Smith Barney), Richard

Swift, (Salomon Smith Barney), Tom Barron, (Human Resources), Pam Hodge

(Finance) Denise Baxter (Revenue) and John Milam, (Bull Creek Golf Course)







Mr. Harris called the meeting to order. Julia Rasch, Recording Secretary,

recorded the attendance.





MINUTES OF THE PREVIOUS MEETING:



The motion to accept the minutes from the September 14, 2005 meeting was made

Ms. Weaver and seconded by Assist. Chief Arrington. The vote to accept the

minutes as submitted was unanimous.



Some of the board members had other commitments that would take them from the

meeting therefore the order of business was changed:





OLD BUSINESS:



Bull Creek Public Safety Employees Issues



The first item of business was the Bull Creek Golf Course Correctional

Officer?s issue on being placed in the Public Safety Pension Plan. Mr. John

Milam from Bull Creek Golf Course was introduced to the board members and he

then proceeded to explain their position on the issue. He stated that the four

correctional officers that work for the Golf Course are currently not covered

under the Public Safety Pension Plan. They had come to him and asked if it was

possible to get changed over to the Public Safety Pay Plan and Pension Plan.

Mr. Milam had talked with Mr. Barron and was told that it would have to come

before the Pension Board for approval. He stated that he understood that were

some concerns and he had come to make himself available to answer any questions

that the board may have. Mr. Hugley stated that his concern is that the

security level of the inmates that work at the Golf Course are minimum security

inmates and do not require the supervision of a correctional office one-on-one

as are the inmates who work at Parks & Recreation and Public Services who have

to have a correctional officer with them at all times. He feels that the

inmates at the Golf Course are in the same category as those who work at the

government center and who are free to go about their work without immediate

supervision of a correctional officer, and those correctional officers are not

in the Public Safety Pay Plan. Mr. Hugley stated his concern is that if the

correctional officers who are assigned minimum-security inmates, who are not

under constant supervision by a correctional officer, are put into the Public

Safety Pay Plan then the door is opened and for that reason, I can?t support

them going into the Public Safety Pay Plan. There are too many

minimum-security inmates throughout this government where they are not under

constant supervision and if the board allowed the Golf Course correctional

officers to be admitted to the Public Safety Plan, then the other correctional

officers would petition to get in as well because a precedence had been set.

Mr. Milam stated that he understood, he had told his correctional officers that

he would come and plead their case in hopes of getting an answer favorable or

unfavorable and he had his answer. Mr. Harris asked if anyone else had any

questions.



Mr. Milam was dismissed from the meeting at this time.



Mr. Harris stated that this issue had been discussed at length at last month?s

board meeting and he felt that with what was said at this meeting today, the

feelings of the board had been reaffirmed and he asked for a vote. ?All in

favor of leaving the participation of the golf course correctional officers the

same as it is currently; please say Aye?. The vote was unanimous to leave the

participation as it stands.





PRESENTATION:



Mr. Doug McClure with Madison Investment Advisors was introduced at this time

to the board of trustees and presented the report following this outline.



? Performance Review

? Account & Performance Summary

? Portfolio Characteristics

? Portfolio Quality Distribution

? Sector Distribution

? Historical Returns & Asset Growth



? Investment Strategy

? The Greenspan Era Rate Hikes

? Interest Rate Tightening Cycles (1988 ? 2005)

? Economy Stats



Portfolio Appraisal



Mr. McClure was thanked for his presentation and was dismissed from the meeting.





INVESTMENT UPDATE:



Mr. Richard Swift passed out to the board copies of the interim report. The

first couple pages showed what action had taken place in the markets from

September 14, 2005 to October 5, 2005. The S&P 500 had dropped from 1231 on

09/14/05 to 1208 on 10/05/05. The yield on the Ten Year Treasury Bond went up

from 4.13% on 09/13/05 to 4.33% on 10/05/05.



Next were the performance numbers on all the money managers. The fixed Income

managers, Synovus, Tattersal, (First Union) and Madison went from a combined

fixed of $73,635 million to $73,229 million, a drop of ?0.55%. The growth

managers, Santa Barbara and Rittenhouse, went from combined growth of $27,579

million to $27,032 million, a decrease of ?1.98% vs. the Russell Growth at ?

1.29%. The value managers, Deutsche Asset and Spears went from a combined

value of $39,930 million to $39,793, a decrease of ?0.34% vs. the Russell value

-1.06%. The core managers, Trusco, Knott, and Madison, went from the combined

core value of $24,514 million to $24,115, down ?1.62% vs. the S&P 500 being

down ?1.36%. Last was the international money manager, Lazard, and the

combined value of the international portfolio went from $12,517 million to

$12,265 million, an increase of 0.89% vs. the EAFE International Index being

1.85%.



The total combined equity went from $104,179 million to $103,207 million, a

decrease of -0.93% and the total city account showed a decrease of -0.77%

($177,813 million to $176,435 million).



Mr. Richard Swift stated that he would like to address the board on what?s

leading the index returns. He presented two charts that basically explained

that, the lower quality stocks have been outperforming the higher quality

stocks and because the City?s pension plan is almost exclusively high quality

stocks, the money managers have been under performing. The energy and

utilities sectors have been leading the market place, and because the pension

plan does not have near what the S&P has in their weighting, that?s been

hurting us the performance of the money managers. Referring to two charts he

had he states the first chart this showed the returns from 8/31/04 through

8/31/05 for the different sectors in the S&P 500 and the energy sector was up

51.9%, the utilities were up 34.6% which indicates a very strong performance

for these two categories. The second chart referred to the quality rating and

as indicated, the lower the rating the better the returns and this pension plan

has always stuck with the A rated or better securities and those are the lowest

returns for that period of time.



A copy of the evaluation reports and the other information presented to the

board is retained by the Board Secretary in the Finance Director=s Office and

is available for review upon request.







NEW BUSINESS:



None.



The meeting was adjourned.



The next meeting is scheduled for November 2, 2005 at 2:00 p.m. in the Mayor=s

Conference Room. Evergreen Investments will be here for their presentation.









_______Julia A. Rasch ____

Julia A. Rasch

Recording Secretary