R-7091
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Council Meeting: September 10, 19B5 Santa Monica, Californ~a
Resolut~on No. 709l(CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA ADOPTING A POLICY TO
mVEST CITY FUNDS FROM BANKING/FINANCIAL INSTITUTIONS
AND BUSINESSES DOING BUSINESS IN THE
REPUBLIC OF SOUTH AFRICA
WHEREAS, the policy of apartheid which is being enforced
in the Republic of South Afr~ca represents institut~onalized
discrirnJ.nat~on and violates the human rights of more than 23
mill~on South Africans: and
WHEREAS, the J.mposition of strang sanctions by ~ndividual
nun1.cipal governments in the Un~ted States can be effective J.n
helping to bring an end to the system of apartheid and encourage
the development of a government ~n South Africa that will respect
the fundamental human rights of all ~ts cit~zens: and
mEREAS, the citizens and government of the City of Santa
f.bnica reflect a community unJ.ted in its commitment to pOlicies
'.ituch guarantee broad human rights to people throughout the
world;
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
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SECTION 1. The City of Santa Monica shall not invest in
Banker I s Acceptance, as deflned In Section 53635(f) of the
Government Code, which are connected with the government of the
RepubllC of South Africa, its agencles, or private South African
corporations.
SECTION 2. The City of Santa Monica shall not invest in
commercial paper, as defined In Section 53635(g) of the
Government Code or eqult1.eS of UnJ.ted States Corporatlons whJ.ch
have d1.rect J.nvestments or operations J.n South Africa, unless
they are signator1.es to the Sullivan pr1.nciples and have achieved
a rating on their performance which lS evaluated at Sullivan
Rating Categories I. II. IV. or V.
SECTION 3. The C1.ty of Santa Mon1.ca shall only do
rosiness (defined as fJ.nancJ.al transactions permitted under
Section 53630 et. seq. of the Government Code and the contacting
by the CJ.ty for any other financial services) with
banking/financJ.al J.nstitutions (defined by Section 53630 et. seq.
of the Government Code) that do not make loans to the government
of the Republic of South Africa or its agencies. However, if the
banking/financial institutlon is termlnating a loan to the
g::>vernment of the Republic of South Afrlca, the City of Santa
Monica may do business with the banking/financial inst1.tution
provided that the banking/financial institution has adopted a
pol1.cy statement opposing apartheid.
SECTION 4. The City of Santa Monlca shall not do business
(as defJ.ned J.n Sectlon 3) wlth banking/flnancJ.al instJ.tutJ.ons (as
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def1ned in Section 3) wh1ch make loans d1rectly with the private
sector in the Republic of South Africa, unless the
bankingjf1nancial institution has adopted a policy wh1ch: (l)
cpposes the pol1cy of apartheid, and (2) guides South African
private sector investments to those South African businesses
which contr1bute to soc1al and economic benef1ts for all South
Afr1cans and do not tend to support the policy of apartheid.
SECTION 5. The City Clerk shall cert1fy to the adopt1on
of this Resolut1on, and thenceforth and thereafter the same shall
be 1n full force and effect.
APPROVED AS TO FORM:
~WL.-,~
Robert M. Myers 0
City Attorney
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Adopted and approved this 17th day of September, 1985.
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I Mayor
I hereby certify that the foregoing Resolution No. 7091(CCS)
was duly adopted by the City Council of the CIty of Santa MonIca
at a meeting thereof held on September 17, 1985 by the following
CouncIl vote:
Ayes: Councilmembers: Conn, Epstein, Jennings, Zane and
Mayor Reed
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: Katz
ATTEST:,-
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Ci ty- n.erk
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