HomeMy WebLinkAboutCC RES 95-16
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RESOLUTION NO. 95-16
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, DEMANDING THAT THE ORANGE COUNTY BOARD OF
SUPERVISORS ACCEPT RESPONSIBILITY FOR THE ORANGE COUNTY
INVESTMENT POOL BANKRUPTCY AND THAT IT RETURN 100 PERCENT
OF THE DEPOSITED FUNDS TO THE CITY OF TUSTIN AND ALL OTHER
POOL DEPOSITORS
WHEREAS, the County of Orange is authorized by Section
53684 of the California Government Code to serve as a trustee
for funds deposited by cities and other governmental agencies
in the Orange County Investment Pool (OCIP); and
WHEREAS, the Orange County Treasurer/Tax Collector
represented to the City that it adhered to all provisions of
State law regulating the activities of county treasurers as
well as the specific provisions of Orange County's own
investment policy; and
WHEREAS, the County continues to hold the City of
Tustin's accrued interest earned while City funds were
deposited in the OCIP, and
WHEREAS, the County continues to hold funds the City
deposited for the 800 mega hertz police communications system
and County matching funds for road construction projects, and
WHEREAS, the Orange County Treasurer/Tax Collector made
assurances to the City of Tustin concerning the safety and
liquidity of the City's deposits in the OCIP; and
WHEREAS, the Orange County Board of Supervisors is
required by law to exercise oversight of the activities of the
Orange County Treasurer/Tax Collector; and
WHEREAS, the OCIP has incurred significant losses to
participants' deposits due to the over-leveraging of the
portfolio and the use of high risk investment instruments; and
WHEREAS, on December 6, 1994, the County of Orange filed
for bankruptcy under Chapter 9 of the Federal Bankruptcy Code
on behalf of the County and the OCIP,
NOW, THEREFORE, BE IT RESOLVED, that the City of Tustin
City Council demands that the Orange County Board of
Supervisors accept its fiduciary responsibility to the
participants in the OCIP, and
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Resolution No. 95-16
Page two
BE IT FURTHER RESOLVED, that the City Council of the City
of Tustin totally rejects the "share the pain" theory being
promoted by the Orange County Board of Supervisors or any
attempt by the County to use a "cram down" approach in dealing
with creditors; and
BE IT FURTHER RESOLVED, that the City Council of the City
of Tustin demands that the Orange County Board of Supervisors
immediately return 100 percent of the funds the City of Tustin
had on deposit in the OCIP, and other City funds held in trust
by the County, and adopt a bankruptcy plan in which the Orange
County Board of Supervisors assumes the entire responsibility
for this crisis and which makes every victim of this crisis
whole.
PASSED AND ADOPTED, at a regular eeting of the City
Cou cil for the City of Tustin on this ~ day of
19 9.a~ .
THOMAS R. SAL RELLI, Mayor
ATTEST:
RY E. WYNN, City Clerk
City of Tustin
RESOLUTION CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF TUSTIN )
RESOLUTION NO. 95-16
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