HomeMy WebLinkAboutMINUTES - 09161986 - X.3 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, -CALIFORNIA
Adopted this Order on September 16 , 1986 , by the following vote:
AYES: Supervisors Fanden, Schroder, McPeak, Torlakson, Powers
NOES: None
ABSENT: None
ABSTAIN: None
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SUBJECT: County Anti-Apartheid Policy
Claude Van Marter, Assistant County Administrator, advised
that his office has met with the Treasurer-Tax Collector, County
Purchasing Agent and James Rogers of ROAR (Residents Opposed to
Apartheid Racism) , and a set of policy positions has been developed
which are mutually acceptable to the County and ROAR, as outlined in
the attached report. He noted that there are two outstanding issues
on which agreement has not been reached. These are 1 ) the issue of
bid preference and size of a possible cap, and 2) clarification of
businesses to be included in the anti-apartheid policy.
Cliff Baumer, County Purchasing Agent, expressed his
department' s desire to enforce an anti-apartheid policy adopted by
the Board. He noted, however, that there are some questions related
to the interpretation and implementation of some aspects of the pro-
posed policy, notably the issues of third party dealers and the
purchase of medical supplies.
The following persons appeared and urged the Board to take
action on a strong anti-apartheid policy as proposed by ROAR :
James Rogers, 1205 Melville Square, #404, Richmond, repre-
senting ROAR;
Henry Lane, 2141 Burton Ave, Pittsburg, representing the
East County Rainbow Coalition;
Amos Adams, Jr. , 1734 Truman Street, Richmond;
Maryann O'Sullivan, 339 19th Avenue, San Francisco;
Rose -Lernberg, 831 Balra Drive, E1 Cerrito, representing
the El Cerrito Democratic Club;
Tanya Batte, 5309 Gately Avenue, Richmond; and
Bobbie J. Arnold, 2524 Virginia Avenue, Richmond.
Board members discussed the matter and agreed on the need
for staff to review some of the practical implications of the propo-
sals and to continue to work to achieve agreement on the issues.
Therefore, IT IS BY THE BOARD ORDERED that decision on a
County Anti-Apartheid Policy is DEFERRED for one month.
hereby certify that this Is a true and correct copy of
an action taken and entered on the minutes of the
cc: County Administrator Board of Supervisors on the date shown.
Treasurer-Tax Collector ATTESTED:, �1� /�L; l984
Purchasing Agent PHIL BAT HELOR, Clerk of the Board
James Rogers, ROAR of Supervisors and County Administrator
By , Deputy
BOARD OF SUPERVISORS
FROM: Phil Batchelor Contra
County Administrator
(J�WICI
DATE: September 15, Cwrty
SUBJECT;
County Anti-Apartheid Policy
SPECIFIC REQUEST(S) OR RECOMII/IENDATION,(S) .& BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
1. Endorse the following policy positions on which agreement
has been..,.reached-with.. ROAR (Residents Opposed to Apartheid
Racism) .
2. Determine what position. the Board wishes to take on the
issues on which agreement has not been reached with ROAR.,
3 ., Direct. County Counsel - to draft a Resolution. for
consideration by .the Board based on the policy positions
adopted by the Board.
4. . Authorize „the, . Chairman . and Vice-Chair of the Board of
Supervisors to meet with representatives 'of those firms
which do business with the County of Contra Costa and would
be most affected by the proposed Resolution. to receive their
input on actions which those companies could take to put
pressure on, the Government of South Africa, including, but
not limited to, the following:
o Jointly signing a letter with the County to the
President of the United States and Congress of then
Unite, States urging that actions be taken which would
pressure the government of South Africa to dismantle
the policy of apartheid;
o Arranging, under the auspices of the United Nations, a
meeting with the President of South Africa to impress
upon .the President. the urgent need to take actions to
dismantle 'the policy- of apartheid;
o Establishing a fund which could be used to assist:
Black, Colored, and Indian citizens of South Africa to,
purchase or- invest in businesses in South Africa.
BACKGROUND:
On August 12, 1986, the Board of Supervisors directed that this
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
X RECOMMENDATION OF COUNTY ADMINISTRATOR _ RECOMMENDATION OF BOARD COMMITTEE
X APPROVE _ OTHER
i
SIGNATURE(S 1: fes/
A N OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
1 HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS (ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: NTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUP SORS ON THE DATE SHOWN.
CC: ATTESTED
PHIL BATCHELOR, CL OF THE BOARD OF
SUPERVISORS AND COUN MINISTRATOR
BY
M382/7-83 DEPUTY
IIfrr1:-. 1
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office submit a report to the Board of Supervisors based on the
recommendations. submitted to the Board by Supervisor Powers which
<<: the Board approved• in concept.
�z.,;•, In preparing this report, we have met with the Treasurer-Tax
-F Collector and the Purchasing Agent to obtain their input. Staff
has also consulted with James Rogers of ROAR (Residents
fig Opposed
r; to Apartheid Racism) . We have developed a set of policies which
we believe are consistent with the spirit of the recommendations
. :: approved in concept by the Board on August 12, 1986.
HISTORY OF BOARD ACTIONS REGARDING APARTHEID:
The Board has considered the issue of a policy on apartheid on
several occasions over the past two years. Among the actions
already taken by the Board are the following:
o Adopted a policy (Resolution 85/46) which expressed
The Board'•s -"unalterable opposition to the barbaric and
inhumane policy of apartheid as practiced by the
government of South Africa" and which called on all
parties who are` responsible for the investment of
public funds in private corporations which may be
contributing to the policy of apartheid to use their
proxy authority toiprotest the policy of apartheid.
o This policy statement was forwarded to the President of
the United States and the County' s legislative and
congressional delegations. The policy statement was
also forwarded to the State Controller, asking that he
consider it in relation to his responsibility for
investing State funds.
o Commended ' the County Retirement Board for their
position on the .use of proxy votes to demonstrate their
opposition to the policy of apartheid.
o Indicated that it is the Board' s intent to consider
sensitivity 'to social issues, as well as financial
knowledge, when making public member appointments to
the Retirement Board.
POLICY POSITIONS ON 'WHICH AGREEMENT HAS BEEN REACHED
1. Adoption of , the, . attached strong statement of the Board' s
opposition- to apartheid.
Adoption of policies which:
2. Request the• Treasurer-Tax Collector, within the scope of his
fiduciary responsibilities; to invest the County' s funds in
banks which have signed an affidavit indicating that they
are not making new loans to nor renewing existing loans,
except for. the purpose of avoiding a default of a loan to:
(a) The'',government of South Africa or the government of
Namibia; or
(b) Any business or corporation organized under the laws of
South Africa or Namibia; or
(c) Any business or corporation for the express purpose of
. doing business with, conducting operations in, or
trading with South Africa or, Namibia.
3 . Request the Treasurer-Tax Collector, within the scope of his
'fiduciary responsibilities, to avoid investing or allowing
County funds to amain invested in the stocks, bonds,
securities, or other obligations of any bank or financial
}t, Page 3
institution which'j h a`s a policy of making new loans or
renewing loans to the -entities listed in 2. (a) , 2. (b) , or
2. (c) except for the purpose of avoiding the default of an
existing loan. .
`= 4. Direct the Purchasing Agent to g
g give preference in purchasing
: ;. services, equipment fand supplies for the County to firms
which have signed an affidavit indicating that it is the
firm' s policy not to sell services, equipment or supplies to
the government of South Africa, or any business or
corporation grganized ,under the laws of South Africa.
5. Direct the Purchasing Agent to include in all applicable
bids a certification by the bidder that the product was not
produced or- manufactured in South Africa. The Purchasing
Agent would � be directed to purchase only supplies or
equipment not produced or manufactured in South Africa,
subject to the same exceptions set forth below.
6. Specify that�' the policy is to apply to all new or renewed
contracts or purchase orders and is not intended to abrogate
any existing contractual relationships.
7 . Define "business'' , "corporation", and "bank" for purposes of
this policy. .as meaning the firm with which the County
proposes to do business and any parent holding company, but
excluding any other subsidiary of the parent holding company
providing 'the parent holding company is not ineligible
itself. For, example, it is permissible to purchase
equipment or supplies from a firm which has signed an
affidavit even though that firm is a wholly owned subsidiary
of a holding company which also owns a business which does
sell equipment or supplies to the government of South
Africa, or a business organized under the laws of South
Africa, as long as the holding company itself does not sell
equipment or supplies to the government of South Africa, or
a business organized under the laws of South Africa. The
same would be true for. investments in banks. If, however, a
parent holding company sells equipment or supplies to the
government, of South Africa, or a business organized under
the laws of South Africa, then all of its subsidiaries are
considered not to have signed affidavits.
A parent, holding company need not be asked to sign an
affidavit if an affidavit is on file from the firm with
which the County is proposing to do business unless
questions are .raised about the activities of the parent
holding company.
If the County is proposing to purchase equipment or supplies
from . ;a parent holding company directly, then the holding
company must sign an affidavit on behalf of itself and all
of its wholly owned subsidiaries. The same would be true
for banks in terms of the investment of funds.
8. Specify that references to "Purchasing Agent" are understood
to apply to the Purchasing Agent, his employees, and other
County departments which may do some or all of their
purchasing as designees of the Purchasing Agent.
9. The policy is to also apply to contracts approved by the
Board of Supervisors and to bids awarded directly by the
Board of Supervisors.
10. Specify that any reported violation of a signed affidavit is
to be investigated and, if found to be true, will result in
the absolute boycott. of that firm' s services, equipment and
p
�... su plies for a one-year period.
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11... Speclfy that :.the'.Purchasing Agent may approve an exception
to, the policy in:;#4 when the only bidder .on a service, piece
r 'yof, -equipment, 'or." supplies, cannot sign an , affidavit (the
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sole source • exception)
12. Exempt "all purchases of : less than $5,000 in one fiscal year•
ke �. from the offi.davit requirement.
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3� h .POLICIES ON-WHICH FULL-.:AGREEMENT HAS NOT BEEN .REACHED
#� 1 Whether the policy ' on purchase If services;' equipment and
su lies should. a 1
It com antes doing business with the
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government.: of'" South' Africa and firms_µ organized under the
laws of South Africa,, - or also ito firms which simply do
rpt „{°rJ business 'in='South Africa. ROAR believes that most of the
r larger- firms which a°re" the -target Lof anti-apartheid policies
are doing" business with the government of SouthAfrica and
f, so would.be.. covered by the policy.) . However, ;for the sake of
consistency with most other anti-apartheid policies, ROARwould like,. Contra Costa County' s 1.policy to '.also cover all
t ' firms.• doing,busine_s,s .in. .South Afr 1 da, even if they do not do.. .
business with ' the government or ., `with ' South African
'
companies.
We understand the policy against apartheid tc� be intended to ;l
put pressure on : the government of South Africa to change
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their laws 'and dismantle- apartheid. We do not see how this .
f :. goal is furthered by extending it to a company which simply
has an office in South Africa and may be selling its
xf.-. products or services to private citizens.
2. There is agreement between County staff and ROAR on the need
for a bid preference ' for companies which are not doing
business with. the government of South Africa. The
difference of opinion is over the amount of the
..>. p' preference.
.,1 Staff, suggests a 5% bid preference, or $20,000, whichever is
less. The policy might be worded as follows:
Direct the Purchasing. Agent to give preference in purchasing
.;j. equipment and supplies for the County to firms which have
signed an affidavit indicating that it is the firm' s policy
yy.`,• .. not to sell equipment or supplies to . the government of South
; . Africa, or any business or corporation organized under the
laws of South Africa. This preference is implemented as
follows:
;. .:' o The Purchasing Agent shall request all applicable
bidders to sign such .-an affidavit.
o In awarding bids, the Purchasing Agent shall award the
u.s bid to the lowest responsible . bidder who has signed
such an affidavit, except that the Purchasing Agent may
award a '' 'bid to a firm which has not signed such an
affidavit under the following circumstances:
when no responsible bidder has signed an affidavit;
, ..
—When awarding the bid to the lowest responsible
bidder. who has signed an affidavit would cost the
;:,• county more than' 5% of the value of the bid, or
'FfL $20,000, whichever is less.
b1
(For example, if the Purchasing Agent' has two bids;
one for $100,000 from a bidder who has signed an
r affidavit, and one for $96',00.0 from ;` bidder who
* f ; has not signed. an affidavit, . he must•, award the bid
to `the. bidder who bid ,.$100,000. If,' however, he
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has .,
'of $100, from a bidder who has signed
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an•.affidavit, and a bid of. $94,000 from a
bidder 'who has not signed an affidavit, he may
award,' the' bid ' to the $94,000 bidder.')_
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>; rThe limit of .$20,000 .limits the County' s losses on any one.
bid to $20•;000'<'evenif the 5% preference' exceeds that
amount.
_ROAR 'wants_:the bid .preference .increased to 10% or 12%. They
also want ;.''the,:,. $20,000: cap increased substantially, or
�xry eliminated entirely. Without any .cap, the cost to the
County to comply with the policy could be substantial. On a
$1,000,000 bid .'a:• 5% . preference could cost the County '
�✓ z '- $50,:000 A''10%. preference could cost the County $100,000.
On large bids, such as the construction of: the new jail,
orris
this bid preference could easily be in excess of $1 million.
We believe the ' County needs to limit its exposure to
, .. substantial losses in the award of bids by applying a
r` reasonable capto the loss on any one bid, particularly if
the majority''" y" '" the-` "'Board wish to increase the bid` ••
preference to 10%.
The issue then is how much the percentage preference should
be and how much the cap should be on any one bid.
r:
One possibility would' 'be to adopt the policies suggested by •
staff and leave these two unresolved issues to be decided on
finally once the meetings with the representatives of the
companies that would be affected by the Resolution are
completed.
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. . ,STATEMENT OF BOARD POLICY ON APARTHEID
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ar s: "WHEREAS the citizens of the County of Contra Costa
� , a
recognize,,;: 'the,, moral responsibility of ... communities to take
F ; positive steps to end the practices of racial discrimination and
� racism both in the United States and abroad; and
{ WHEREAS the minority.. ' government of South Africa has
institutionalized ' racial discrimination and racism under the
policy .of apartheid, denying more. than 20.9 ,million Africans as
well : as Coloreds ' and :Indians the right to participate in the
political .process- or_t ' benefit from the system of justice; and
� r ? WHEREAS the .minority government of South Africa has
{ implemented a web. of racially discriminatory laws and practices,
including:
(a) The Constitution - itself, which . entrenches a white
,f monopoly ,,of; political power;
endent homelands"
(b) The "independent- homelands"p policy and Group Areas Act
�t r which :.:mandate--.separate . residential areas for whites,
Africans, Coloreds, and Indians, and which
denationalize South Africa' s 20.9 million African
citizens by, arbitrarily assigning them to live, in
fiw resource-poor "independent homelands" (constituting a
non-contiguous 13 percent of the land for 72 percent of
the population) regardless of their place of birth or
location of " .their home and family, and which has
already caused . .the forcible uprooting of over 3.5
million black persons;
(c) The, influx control or "pass" laws, which prescribe and
3 limit the conditions under which African workers and. .
their families may remain outside the homelands, and
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which traps several hundred thousand wives of African
migrant workers to be left to bring up their families
through subsistence farming and remittances from their
spouses (black women are treated under South African
law as ,perpetual minors, limiting their ability to own ,
or rent" accommoda'tions and depriving them of employment
alternatives) ;
(d) Separate and unequal educational systems for the
various . race groups (average expenditure for white
` .` students exceed 1,000 percent of expenditures for black
students) ;
(e) Labor laws and practices that effectively limit the
proportion of black workers ' as a percentage of a
company',s labor , force in an urban area and tightens
controls on . the activities of free trade unions;
(f) The Internal Security Act and other so-called security
legislation which are designed to stifle and silence
y,' . . public opinion by authorizing the banning of
individuals who are then unable to work and are exiled
to remote areas, and by allowing the arbitrary,
preventive and secret detention of critics who can be
held indefinitely and incommunicado for interrogation
without.. the. ' right, of a .writ of habeas corpus And -
without being brought to trial; and
WHEREAS the minority government of South Af rica . continues
its military occupation and control of its neighbor state,
Namibia, despite United Nations directives to withdraw; and
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` WHEREAS the- United States Supreme Court has upheld the power
of ' 'a' municipality.." to : make legitimate economic decisions without
enJ'kz
� � ('being. subject 'td.,,the restraints of the . interstate Commerce Clause
}d �, when. it participaaes in the marketplace as a corporation or a
� citizen as o osed to exertin
- pp g- its regulatory powers; and
J" WHEREAS the County . of Contra Costa declares the right to
yk x s measure.',.,. the moral character of its business partners in
l
,�� :determining with whom it"seeks to have business relations; and
WHEREAS the: system of apartheid in South Africa is morally
repugnant to citizens of ,the County of Contra Costa, the Board of
w rSupervisors of. the 'County' of` Contra Costa do hereby set forth a
x ` :policy prohibi.ting.-...author.ized- deposits, investments and use of
funds .with 'banks, financial institutions, investment firms, or
v
service firms, who either loan money or who -provide services to
the public or ' private sector in South Africa or Namibia, and
prohibiting the purchase of any commodities actually produced in
p= South Africa .or Namibia;"
NOW, THEREFORE,' BE' IT BY THE BOARD OF SUPERVISORS OF THE
COUNTY OF CONTRA COSTA RESOLVED:
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