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221 <br /> <br />companies have a positive affect in South Africa. Instead of <br />total divestment, Mr. Marhoefer recommended that Council <br />adopt a resolution calling for the immediate end to <br />apartheid. <br /> <br /> Mr. David Toscano of 705 Evergreen Avenue, supported <br />total divestment and stated that the data available indicate <br />that that total divestment would not have a negative impact <br />on the City's investment. Mr. Toscano noted that because <br />the City's Retirement Fund is a defined benefits plan, <br />retirees will not be affected. <br /> <br /> As there were no further speakers~ the public hearing <br />was closed. <br /> <br /> Mr. Vandever moved the resolution supporting total <br />divestment, and stated that he felt it was a powerful <br />symbolic act. Rev. Edwards seconded the motion. <br /> <br /> Mr. Towe stated that he felt the financial questions <br />regarding divestment should be addressed and that the <br />Retirement Commission should take up the issue prior to <br />Council action. Mr. Towe noted that should there be a <br />shortfall in the Retirement Fund, the remainder would have to <br />be made up from the City's General Fund. <br /> <br /> Mr. L. G. Harding, City Treasurer, stated that he has <br />been comfortable with the previous policy allowing investment <br />in companies adhering to the Sullivan Principles. Mr. <br />Harding stated that since more American companies have left <br />South Africa the financial risk of total divestment has been <br />reduced, but noted that a risk still exists. <br /> <br /> Ms. Rita Scott, Director of Finance, stated that there <br />are very few long-term South African free portfolios <br />available to review~and therefore the long-term impact is <br />unknown. <br /> <br /> Ms. Waters noted that the transaction cost of divestment <br />would amount to approximately $7,000. ~ <br /> <br /> Mr. Buck stated that he would Vote against the <br />resolution because he supported the present policy of <br />investing~ in those companies adhering to the Sullivan <br />Principles and who have strong affirmative policies for <br />socials_and legal integration, Mr. Back stated that he had a <br />moral problem with comfortable Americans dictating <br />consequences to those living in South Africa. <br /> <br /> Mr. Vandever stated that American companies in South <br />Africa employ only a small-number of black persons and that <br />the South African regime is intolerable. <br /> <br /> 'Mr, Towe~questioned whether total divestment would have <br />an impact on the Cityts uPcoming bond issue and recommended <br />that the Retirement Commission be given an opportunity to <br />advise Council on the matter. <br /> <br /> Mr. Buck stated that he felt the deciSion of whether to <br />divest was a proper issue for the Council to decide~ <br /> <br /> Ms. Waters stated that she felt divestment was a <br />difficult moral and ethical decision about which people <br />disagree. Ms. Waters stated that she has seen no indication <br />that the Sullivan Principles are working and that she <br />intended to vote in favor of the resolution with the <br />realization that total divestment could.cause pain to black <br />South Africans. <br /> <br /> The resolution adopting a policy regarding divestment of <br />City Retirement Funds in entities operating in the Republic <br />of South Africa was approved by the following vote~ Ayes: <br />Rev. Edwards, Mr. Vandever, Ms. Waters. Noes: Mr. Buck and <br /> <br /> <br />