Eureka council approves letter urging CalPERS divestment, adds language on 'war profiteering'

The Eureka City Council voted to send a letter to the California Public Employees' Retirement System asking it to divest from companies that staff and residents say support the Israel–Gaza conflict, and added language asking CalPERS to refrain from investing in companies "engaged in war profiteering." Council action came after a staff presentation and more than an hour of public comment urging the council to act.

City Manager Slattery presented a draft letter for council consideration and clarified the item would not remove Eureka or its employees from participation in CalPERS. Slattery told the council the item was a request for information and a potential letter to CalPERS and noted "CalPERS invests right now $556,000,000,000 of investments" while acknowledging that pinpointing the percentage tied to companies that supply military technology or arms is difficult because of multinational holdings.

Dozens of residents spoke during the public-comment portion, urging the council to press CalPERS to divest. One speaker, Ellen, told the council she had seen what she described as a "double tap" attack and urged the council to act, saying, "Divestment works. We will be on the side of humanity." Karpani and other speakers described the current hostilities in Gaza as genocide and urged the city to add its voice to a broader movement.

Council members discussed wording changes before the vote. Council member Contreras Deloche asked that the letter avoid language that could be read as targeting individuals and proposed changing "Israeli" to "Israel" or explicitly to the "government of Israel." Contreras Deloche also proposed broadening the letter’s scope so the city would oppose investments that facilitate human-rights violations more generally. Council member Castellano and others supported clarifying language; Castellano said the action was symbolic while acknowledging it was unlikely to change CalPERS' portfolio immediately.

Council member Fernandez moved to adopt the letter for signing. The motion was amended on the record to add a sentence asking CalPERS to refrain from investing in companies "engaged in war profiteering," with staff agreeing to capture the amended wording from the meeting recording. The clerk announced "4 yes votes" and that Council member Bauer was absent; the motion carried.

The council did not take additional formal action beyond approving the amended letter. City staff said they would transcribe the amendment from the recording and prepare the final letter for distribution. Mayor Bridal thanked residents for attending and adjourned the special meeting.

What happened and why it matters: Eureka joined other municipalities whose residents have called for public-pension divestment over the Israel–Gaza conflict; the council’s action is a symbolic step that, according to staff and council comments, does not itself force CalPERS to divest and must contend with CalPERS' fiduciary responsibilities and governing rules. The council added a broader anti–war-profiteering line to make the letter explicitly address investment practices it deems ethically objectionable.

Next steps: Staff will draft the final letter incorporating the council's edits and send it to CalPERS; the council discussed sharing the proposal with state legislators to encourage any needed legislative changes.