The amendment did not name Israel and did not adopt boycott, divestment, and sanctions (BDS) language sought by some residents who have for more than two years called on the city to condemn Israel over its conduct in Gaza.
The new language, inserted into Section 10 of the city’s investment policy, reads: “The city treasurer or any other authorized individual or company managing investments of the city surplus fund shall not invest in companies that engage in the production of fossil fuel, weapons manufacturing, tobacco, or private prisons.”
City Finance Department staff confirmed during the meeting that the city does not currently hold any investments in the four prohibited categories. The amendment codifies that practice and bars it from changing in the future without further council action.
The motion was made by Councilmember Tyron Hampton, who asked that it be expanded to clarify that the amendment covers funds pooled within the city’s investment portfolio for the Pasadena Community Access Corporation (PCAC), the Pasadena Center Operating Company (PCOC) and the Rose Bowl Operating Company (RBOC). Councilmember Rick Cole proposed a friendly amendment, accepted by Hampton and Councilmember Justin Jones, asking the Fire and Police Retirement System board to consider adopting a similar policy. Finance staff confirmed during the meeting that PCOC and RBOC funds are invested within the city’s pool and are therefore subject to the amended policy.
Councilmembers Steve Madison and Gene Masuda voted against the amendment. Mayor Victor Gordo was absent due to illness.
Vice Mayor Jess Rivas, who brought the amendment forward through the Legislative Policy Committee, said the policy reflects shared community values.
“We are, of course, committed to going carbon free by 2030, so we shouldn’t have any investments in fossil fuels, which we don’t,” Rivas said. “We detest violence everywhere, including by our own government or supported by our own government. And so we shouldn’t invest in weapons manufacturers or the prison industrial complex and we of course support public health so we shouldn’t invest in tobacco.”
The policy, which originally adopted environmental, social, and governance (ESG) provisions in 2021, considers factors including carbon footprint, energy consumption, labor rights, employee diversity, human rights, corporate governance, executive compensation and transparency disclosure alongside traditional financial criteria when managing surplus funds. Monday’s amendment adds four categorical exclusions to that existing framework.
Residents in the council chamber cheered after the vote. While the amendment did not include the explicit Israel-related or genocide language some had pressed for over more than two years, it did codify divestment from weapons manufacturers and fossil fuels — central concerns of the Pasadena for Palestine Divestment Coalition.
Madison and Masuda, who together sit on the Legislative Policy Committee with Rivas, raised concerns that the amendment, while neutral on its face, would be construed as targeting Israel given the legislative record leading up to it.
“Even though we started tonight’s discussion by making clear what was on the table and what wasn’t, the legislative record, if you will, is by the proponents is virtually all about Israel and genocide,” Madison said. “I am not convinced that what’s occurring in Gaza as horrific as it is — and I make no brief for the conduct of the war or for Netanyahu or any actor — but I’m not convinced that that is genocide by the state of Israel.”
Madison said he had requested a report on hate crimes in the city and that there had been at least six antisemitic hate crimes in the past year, alongside a “dramatic uptick in antisemitic behavior, conduct, and hate speech.” He said he feared the action could increase risk to Jewish residents if construed as anti-Israel.
Madison asked whether the council would include language clarifying that the amendment was not aimed at any particular conflict or nation. Hampton, as maker of the motion, declined to accept the friendly amendment, saying the public record was already clear and that anyone reading the policy would see it was not targeted.
Masuda said he was concerned that “one thing could lead to another,” citing the hate-driven origins of Japanese American internment during World War II as a cautionary example.
“In 1940s it started in California, including our governor, then Congress in Washington, the Supreme Court, then President Franklin Roosevelt signed executive order 9066 to force the removal and incarcerate 120,000 Japanese American residents, two thirds were citizens of America,” Masuda said.
Councilmember Jason Lyon defended the policy as the product of careful committee work and a middle-ground position.
“I don’t think there’s support here for taking a stand on Israel itself, but I think these are values we share across the board,” Lyon said. He added that the amendment was “an articulation of an existing policy,” noting: “We don’t invest in fossil fuels. We don’t invest in weapons. We don’t invest in tobacco. And then we’re adding private prisons, which I think is incredibly important.”
Cole, who supported the amendment, called for more dialogue in the community.
“I think there needs to be dialogue in this community because I would hope that everyone in this room would wish for a just and lasting peace in the Middle East and building that will not be done by resolutions or it will be done by all of us,” Cole said.
Public testimony before the vote drew dozens of speakers on both sides. The City Clerk’s office reported receiving 10 individual letters in opposition to any divestment action; a chain letter signed by 1,469 individuals urging the council to reject any divestment resolution; a chain letter signed by 209 individuals supporting expanded ethical investment with divestment from Israel; a chain letter signed by 30 individuals advocating that the council clearly state on the record that it will not adopt any BDS-related measures or policies that single out Israel; a chain letter signed by 21 individuals advocating that the city not include any reference to BDS or Israel in any ESG proposed resolution; a chain letter signed by 76 individuals in support of the ethical resolution and divestment from Israel; and a petition reported to include more than 600 physical signatures in support of an ethical investment policy.
In December, the Legislative Policy Committee discussed the city’s investment policy and public requests to consider boycott and divestment from companies doing business in Israel, and requested a review of the city’s investment policy to ensure exclusion of direct investments in fossil fuel production, weapons manufacturing and tobacco. Private prisons were added during the committee’s Feb. 3 discussion.
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