2009-04-14_Agenda - Laserfiche WebLink

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• In 2006, a report from the United States Hou 2 se of Representatives states that "a company's association with sponsors of terrorism and human rights abuses, no matter how large or small, can have a materially adverse result on a public company's operations, financial condition, earnings, and stock prices, all of which can negatively affect the value of an investment." The current Sudan divestment movement encompasses more than one hundred universities, cities, states, and private pension plans. Companies facing such widespread divestment present material risk to remaining investors. The CITY OF EDINA is concerned not only with the financial repercussions of investment in companies whose values will be negatively affected by their involvement with the genocide being waged by the Government of Sudan, but also with the moral implications of such financial arrangements. The citizens of the CITY OF EDINA do not want funds used to perpetrate terrorism and atrocities against civilians. The CITY OF EDINA acknowledges that a refusal to invest in and divestment from companies that have been targeted as complicit with genocide is a course of last resort that should be used sparingly, consistent with a City's fiduciary duties and only under extraordinary circumstances. In the case of Sudan, Congressional and Presidential declarations of genocide satisfy this high threshold. This Resolution is not intended to set precedent with regard to investment and divestment policies and practices of the City of Edina but is solely in response to the exigencies of the declaration of genocide. The Finance Director of the CITY OF EDINA has determined that the City does not now own any investments in the scrutinized companies identified by the Sudan Divestment Task Force. It is the judgment of the CITY OF EDINA that this Resolution should remain in effect only insofar as it • continues to be consistent with, and does not unduly interfere with, the foreign policy of the United States as determined by the Federal Government. The Resolution Be it resolved that the City Council of the CITY OF EDINA directs that no investments shall be made in any company or corporation identified as a scrutinized company by the Sudan Divestment Task Force. Be it further resolved that the CITY OF EDINA directs any investment held by the CITY that later is identified as a scrutinized company to be sold at the earliest opportunity. The effective date of this policy shall be upon the adoption of this Resolution by the EDINA CITY COUNCIL. The EDINA CITY COUNCIL approves and adopts the above Resolution as of March 18, 2008. sy: