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Home My WebLink AboutORD 86-101 ORDINANCE NO. Q� AN ORDINANCE PROHIBITING OR RESTRICTING CERTAIN TYPES OF BUSINESS TRANSACTIONS BETWEEN THE CITY AND INDIVIDUALS OR BUSINESS ENTITIES WHICH HAVE PARTICULAR BUSINESS OR FINANCIAL RELATIONSHIPS WITH SOUTH AFRICA OR NAMIBIA OR WITH FIRMS DOING BUSINESS IN THOSE NATIONS; MAKING OTHER PROVISIONS RELATED TO THE SUBJECT; PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. WHEREAS, the Republic of South Africa and Namibia have enacted and are enforcing laws which mandate discrimination on the basis of race and color under a legal system called apartheid; and, WHEREAS, South African and Namibian businesses are legally prohibited from providing equal opportunity employment; and, WHEREAS, the unjust and discriminatory laws of South Africa and Namibia have caused civil disobedience and unrest and have thereby brought into doubt the stability and permanence of the political and economic systems of those nations; and, WHEREAS, the security of financial investments in businesses with substantial assets in foreign nations are determined in part by the stability of the political and economic systems of those nations; and, WHEREAS, it is important to the economic health of the Beaumont area that the government and citizens of the City of Beaumont demonstrate to foreign citizens who may be considering investing in the Beaumont economy that the City of Beaumont strongly and actively supports the concept of equal employment opportunity for all persons; and, WHEREAS, the City Council desires to adopt certain regulations designed to insure compliance with the City' s equal employment opportunity ordinances and to insure that City funds are not invested in and through businesses whose financial security could be adversely effected by the instability of the South African and Namibian political and economic systems; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1 . RESTRICTIONS ON CERTAIN BUSINESS TRANSACTIONS Section 1 : Definitions. As used herein, the following words and phrases shall have the following meanings unless the context of their usage clearly indicates another meaning: (1 ) "Doing Business" shall mean conducting, performing, or exercising the ordinary functions and activities for which a corporation or financial institution is organized. (2 ) "Financial Institution" shall mean any federal or state chartered bank, savings and loan, thrift institution, or any other institution permitted by state or federal law to receive deposits of money and to pay out such money through loans, drafts, accounts, certificates of deposit, bankers acceptances, or -other negotiable securities. 2 - ( 3 ) "Instrumentality" shall mean any subdivision or agency of the Republic of South Africa' s or of Namibia' s government or any corporation or subsidiary or affiliate of a corporation that is more than fifty percent owned or operated by the Republic of South Africa' s or Namibia' s governments. (4) "Public Funds" shall mean any funds owned, administered, invested or deposited by the City of Beaumont under the care and custody of the Department of Finance or the City Finance Director, or both, but shall not mean any funds of the City of Beaumont police, fire or municipal employees pension funds. (5 ) "Substantial " shall mean seventy-five percent (75%) or more. Section 2 : Contracts for South African or Namibian Goods . (a) The City shall not make a contract calling for or requiring an expenditure or payment in an amount in excess of Ten Thousand Dollars ( $10,000) out of any fund or funds of the City of Beaumont for the purchase of goods which originate in substantial part in the Republic of South Africa or Namibia. (b) The City shall not make a contract for professional services, including but not limited to legal representation, engineering consultation, managerial consultation and financial consultation, if the contractor or its substantially owned subsidiaries have, within twelve ( 12) months prior to the award of such contract, rendered or agreed to render substantial professional services of a like nature to the governments of the Republic of South Africa or Namibia or to an instrumentality of the governments of the Republic of South Africa or Namibia. 3 - Section 3 : Security Dealers. (a) The City Council shall evaluate all public funds invested through a security dealer which directly, or through its substantially owned subsidiaries, deals in or includes in its portfolio the securities issued by the governments of the Republic of South Africa or Namibia or any securities issued by South African or Namibian companies. (b) Before any public funds can be invested through any security dealer, each security dealer shall disclose to the City Finance Director certifying that it does not deal in or includes in its portfolio any securities issued by the governments of the Republic of South Africa or Namibia or any securities issued by South African or Namibian companies. Section 4 : Financial Institutions. (a) No public funds shall be deposited or invested in a financial institution that directly, or through its substantially owned subsidiaries, has in excess of twenty-five percent ( 25%) in outstanding loans or existing lines of credit to the Republic of South Africa or Namibia or to any company, or its substantially owned subsidiaries, for the purpose of investment in the Republic of South Africa or Namibia. (b) Before any public funds can be invested in a particular financial institution that financial institution shall disclose to the City Finance Director, certifying that it has less than twenty-five percent ( 25%) in outstanding loans or existing lines of credit to the Republic of South Africa or Namibia or to an 4 - instrumentality of the Republic of South Africa or Namibia. The disclosure shall be required if it later enters into any loan or extends any line of credit to the Republic of South Africa or Namibia or to an instrumentality of the Republic of South Africa or Namibia as specified in Section 4(a) . Section 5 : Contracts for U. S. Goods . (a) The City Council shall evaluate all contracts calling for or requiring an expenditure or payment in an amount in excess of Ten Thousand Dollars ($10,000) out of any fund or funds of the City of Beaumont if the contractor or its substantially owned subsidiaries, or both, have within twelve (12) months prior to the award of such contract, sold or agreed to sell goods or services other than food or medical supplies to the following instrumentalities or agencies of the governments of the Republic of South Africa or Namibia or to a corporation owned or controlled by such governments and established expressly for the purpose of procuring such goods and services for such specific instrumentalities or agencies: (1 ) the police (2 ) the military (3 ) the prison system, or (4) the department of cooperation and development Section 6 : Contractors' Disclosure. Prior to entering into any contract for goods or services, the City shall require the contractor to disclose that the proposed contract would not be in violation of Section 2 or 5 of this ordinance. 5 - d�l 1dl Section 2 . Section 7 : The withdrawal or divestment of public funds pursuant to Section 3 of this Ordinance shall be completed within two (2) years after the effective date of this ordinance. Section 3 . Section 8: No provision of Section 4 shall be construed to affect the validity of any depository contract between the City of Beaumont and any financial institution if the depository contract exists at the time this ordinance becomes effective. Section 4 . Section 9 : ( a) The City Council hereby urges the directors and officers of the City of Beaumont fire, police and municipal employees pension funds to consider, whenever it is consistent with their fiduciary responsibility, to preserve capital and maximize the return on investments, the adoption and enforcement of investment policies which avoid the selection of investments that are exposed to the unstable political and economic conditions in South Africa and Namibia. (b) The City Clerk is hereby directed to provide copies of this ordinance to each member of the boards of directors of the City of Beaumont fire, police and municipal employees pension funds. Section 5 . Section 10: The provisions of this ordinance are delcared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section or portion of this ordinance, or 6 - the invalidity of the application thereof to any person or circumstances shall not affect the validity of its application to other persons or circumstances. PASSED BY THE CITY COUNCIL of the City of Beaumont this th e _� day of (fee ,, 1986. 44w� Mayor - 7 - d W io/ TO: MAYOR MEYERS FROM: I HAVE REVIEWED ORDINANCE NUMBER 86-101 AND CONCUR WITH THE CONTENT AS WRITTEN AND VOTED BY COUNCIL OCTOBER, 7, 1986. -Z COUNCILMEMBER BOB , JR. I�OU N C�ILM E�MB E R ANDREW COKINOS MAYOR PRO TEM DAVID MOORE COU CILME DWIN SAMUEL