IRVINE : City OKs Talks on a Joint Venture

Despite growing concern about the city’s fiscal future in the wake of the county’s bankruptcy, Irvine will explore joining a private company to create a regional technology center.

The City Council voted last week to continue contract negotiations with Business Records Corp. of Dallas to operate the city’s information services department.

Company representatives say the department could be expanded into a regional technology center that could earn income by offering services to public and private agencies.

Christina L. Shea was the only council member voting against the proposal, citing the uncertainties of the city’s financial future.

“To have total cost-containment is the only prudent thing to do,” Shea said.

Shea wanted to know why the company believes the city’s information services department needs major upgrading when the city spent about $4 million for new computers several years ago.

But Irvine Mayor Michael Ward said the one-year review of city information services should not be put on hold. The vote to approve contract negotiations does not commit the city to any expenditures, Ward said.

Councilman Barry J. Hammond said the move toward privatization of public services is the right direction for the city and may reduce expenditures.

That was the promise of Business Records Corp. Vice President George Tamas, who proposes to hire the four city employees left in what was a 20-person department and invest about $7 million for equipment.

“We believe this is a potential solution,” Tamas said, “and not another problem for you.”