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A RESOLUTION PROVIDING FOR THE DIVESTMENT OF CITY RETIREMENT FUNDS • IN CERTAIN COMPANIES THAT DO BUSINESS WITH THE GOVERNMENT OF SUDAN WHEREAS, the City of Charlottesville Retirement Plan Commission has a fiduciary obligation to invest the City's retirement funds prudently and for the benefit of the City; and, WHEREAS, pursuant to City Code section 19-64 the investment of retirement funds by the Commission is subject to the restrictions of any investment policy adopted by formal resolution of the City Council; and, WHEREAS, the threshold for divestment of retirement funds based on factors other than business reasons must be very high and should not be taken lightly; and, WHEREAS, the government of Sudan has engaged in a policy of genocide against its own civilian population in Darfur through use of its military and through sponsorship of attacks by armed militias known as janjaweed; and, WHEREAS, approximately 400,000 people have been tortured and killed, and some 2.5 million displaced in and around Darfur; and, WHEREAS, certain international companies operating in Sudan bring significant revenue, cover, and arms to the Sudanese government while providing little benefit to the majority of Sudan's citizens; and, WHEREAS, the City Council has determined that a divestment of investments in multinational • companies that directly support the activities of the Sudanese government is an appropriate response to the situation in Darfur because a number of multinational companies, particularly in the energy and telecommunications fields, provide the government of Sudan with substantial financial resources and the infrastructure to continue the sponsorship of genocidal actions in Darfur; and, WHEREAS, although the City Retirement Fund does not currently have direct investments in such companies, the Council's action shall preclude future direct investment in these companies; and, WHEREAS, this target divestment strategy is intended to indicate disapproval of the actions of the Sudanese government without causing harm to innocent Sudanese citizens. NOW, THEREFORE, BE IT RESOLVED by the Council for the City of Charlottesville, Virginia that the retirement fund's investment managers are hereby directed to refrain from investing or re- investing the assets of the funds held in separately managed accounts, over which the Retirement Commission serves as trustees and fiduciaries, in multinational companies identified as having direct business ties to the Sudanese government or companies whose business activities are in direct support of these companies and the activities of the government. The following are the specific criteria for companies in which investments will not be allowed: Provide revenues to the Sudanese government through business with the government, government-owned companies or government -controlled consortiums; 2. Offer little substantive benefit to those outside the Sudanese government or its affiliated supporters in Khartoum, Northern Sudan and the Nile River Valley — this "outside" population specifically includes the country's disaffected Eastern, Southern, and Western regions; and, 3. Have demonstrated complicity in the Darfur genocide. • Companies that meet any of the following criteria shall not be considered targeted for divestment: 1. Companies contracting exclusively with the Government of South Sudan.