HomeMy WebLinkAboutCC RES 95-171
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RESOLUTION NO. 95-17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, DEMANDING THAT THE ORANGE COUNTY BOARD OF
SUPERVISORS RESCIND ANY ARRANGEMENT WITH ITS
PUBLIC RELATIONS FIRM AND INSTEAD MEET ITS FINANCIAL
OBLIGATIONS TO THE ORANGE COUNTY INVESTMENT POOL PARTICIPANTS
WHEREAS, the County of Orange (County) filed bankruptcy
on December 6, 1994, as a result of the collapse of the
County-managed Orange County Investment Pool (OCIP); and
WHEREAS, the County has hired attorneys and consultants
to represent the County's interest in the bankruptcy
proceedings; and
WHEREAS, it should be expected that a reasonable amount
of funds will be expended by the County for expert legal and
financial advice; and
WHEREAS, the County has also retained a Beverly Hills
public relations firm to promote its image and to apparently
convince outside interests such as the financial markets that
the situation is under control; and
WHEREAS, the financial markets and bond rating firms are
fully capable of ascertaining the facts concerning the
County's financial status without the spin placed upon the
situation by a public relations firm; and
WHEREAS, the Orange County bankruptcy is a topic of
world-wide conversation and the media is more than capable of
reporting the facts without the assistance of a County-
financed public relations firm; and
WHEREAS, to date the County has incurred obligations of
nearly $300,000 to the public relations firm without a
contract; and
WHEREAS, the public relations firm is asking the County
for authority to expend an additional $300,000 for public
relations; and
WHEREAS, the current estimated financial loss caused by
the collapse of the OCIP is 1.7 billion dollars and the
County's share is estimated to be hundreds of millions of
dollars; and
WHEREAS, the County has stopped meeting its obligations
to pay its vendors and suppliers of services, many of whom are
small businesses;
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Resolution No. 95-17
Page two
NOW, THEREFORE, BE IT RESOLVED, that the City Council of
the City of Tustin urges the Orange County Board of
Supervisors to immediately rescind any arrangement with its
public relations firm and instead meet its financial
obligations to OCIP participants and others affected by the
bankruptcy.
PASSED AND ADOPTED, at a regular meeting of the City
Coun it or the City of Tustin on this G.~l~ day of
19 9S .
THOMAS R. SA ARELLI, Mayor
ATTEST:
Y E. WYNN, City Clerk
City of Tustin
RESOLUTION CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF TUSTIN )
RESOLUTION NO. 95-17
Mary E. Wynn, City Clerk and ex-officio Clerk of the City Council of the
City of Tustin, California, does hereby certify that the whole number of
the members of the City Council is five; that the above and foregoing
resolution was passed and adopted at a regular meeting of the City Council
held on the 6th day of February, 1995, by the following vote:
COUNCILMEMBER AYES: Saltarelli, Doyle, Thomas, Worley
COUNCILMEMBER NOES: None
COUNCILMEMBER ABSTAINED: None
COUNCILMEMBER ABSENT: Potts
Valerie Crabill, Chief Deputy City Clerk
for Mary E. Wynn, City Clerk