The Santa Barbara City Council on Tuesday agreed to shed a $2 million corporate note and $500,000 certificate of deposit with two banks that have funded the Dakota Access Pipeline, a 1,172-mile-long underground oil transportation system that has been opposed by Native American and environmental groups.

The council also voted to support a so-called socially responsible investment policy that discourages investment in entities that manufacture, distribute or provide financing for tobacco products, weapons, military systems, nuclear power and fossil fuels.

Council members took two votes; the first was in favor of the policy. Council members Gregg Hart, Cathy Murillo, Jason Dominguez, Harwood “Bendy” White and Mayor Helene Schneider supported, and councilmen Frank Hotchkiss and Randy Rowse opposed. In a separate vote on whether to shed the notes, White, Rowse and Hotchkiss opposed it. 

“To me, fiscally responsible is looking ahead and protecting the city’s assets in the long run,” Hart said. “We need to be speaking clearly and directly to our values on these issues. We need to align our practices with our promises and it is important to show consistency and leadership and not be scared of the fisc in the moment.”

Hart’s comment was a jab at White, who supported the policy, but voted against pulling its certificate of deposit from Goldman Sachs and note with Wells Fargo, both of which fund the Dakota Access Pipeline. The two notes mature in 18 months. If pulled now, the city would lose about $2,000 from the time it originally invested.

White said that it was fiscally irresponsible to pull the investments because it would hurt the city’s finances. He said the $2,000 would pay for 40 fewer interns next summer in the Parks and Recreation Department who watch over 100 kids at summer camps.

“I strongly support the socially responsible investment policies,” White said. “That makes perfect sense. But up here we have two roles we place. Crafting policy and protection of the public fisc.”

The Santa Barbara Standing Rock Coalition pushed the city to adopt the policy, pointing out that the pipeline goes through their sacred Native-American burial grounds; they also have concerns a spill would damage drinking water.

Some cities around the country have adopted socially responsible investment policies and divested entirely from banks that fund the pipeline. In approving the policy, Santa Barbara staff members noted that despite the socially responsible policy, the city’s No. 1 priorities would be the financial safety of the city, liquidity, and yield.

The proposal sparked strong feelings on both sides.

Tom Widroe, president of City Watch, a government watchdog group, asked, who determines what is socially responsible?”

He “confessed” to driving his car to get to work in the morning, and that his wife took his four kids to school in a van today, both of which relied on the use of fossil fuels. He also said he felt safe in America knowing that the United States and its arsenal of weapons protects him from threats from North Korea.

He said local government needs to focus on roads, services, benefits and pensions.

“I get the idea behind this, but City Watch would say one of the best inventions since penicillin is the invention of the combustion engine,” Widroe said.

Emiliano Campobello, of the Santa Barbara Standing Rock Coalition, said that the issue is about more than driving cars. Divesting, he said, sends a message and begins a culture shift.

“I know there’s a long way to go,” he said. “We can take it step-by-step and recognize how we can all do it better.”

Rowse said the policy is more symbolic than anything. 

“There are seven vehicles out there that represent the seven of us going home tonight,” Rowse said, referring to the council members’ cars. “I appreciate the sentiment. I appreciate the movement, but I don’t think this is a valuable use of the city’s time and intellectual energy.”

Dominguez said the city’s action today was overdue.

“This is what separates the human species from animals,” Dominguez said. “We are constantly trying to evolve. We want to be better than we were yesterday.”

Hotchkiss said the council should delay a decision, to let the next council elected in the Nov. 7 election decide how to invest. 

“I don’t think it is a good idea to politicize our financial investments,” Hotchkiss said. “What is popular with most of the people in this room may not be popular with those who are here six months from now. The life of this council is three months. After that this council won’t exist.”

The rest of the council didn’t feel the same, with the 5-2 vote to support the policy. 

“We were elected to make decisions and this is our time to make decisions,” Hart said.

— Noozhawk staff writer Joshua Molina can be reached at jmolina@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.