IRVINE : Moorlach Suggests Councilman Resign

County Treasurer-Tax Collector John M. W. Moorlach joined the chorus of angry voices directed at city officials during a heated six-hour public discussion of the city’s sizable investments in Orange County’s failed investment pool.

The emotional session Tuesday began with an announcement that Finance Director Jeff Niven will be stripped of his title of city treasurer.

It ended with a pledge by each council member to revamp city investment policies.

Moorlach did not mention the recall drive aimed at three council members who voted last summer to borrow $62 million to make an additional investment in the county pool.

But he did tell Councilman Barry J. Hammond that he should consider resigning.

“Your council members are still in place,” Moorlach said, directing his comments to the 150 residents attending the council meeting. “I would ask, as a private citizen, and Mr. Hammond, even as a friend: Where’s your integrity? Where’s the honor? Perhaps, where’s the resignation?”

Hammond, Councilwoman Paula Werner and Mayor Michael Ward approved the $62-million investment in July. Council members Christina L. Shea and Greg Smith voted against it.

When the county declared bankruptcy Dec. 6, Irvine had $208 million in the investment pool, more than any other Orange County city.

Hammond admitted that he made a mistake by approving the ill-fated investment but pointed out that financial experts assured the city that the investment was safe.

“My vote was based on the facts that were in front of me, on evaluating the experts at Standard & Poor and Moody’s” bond rating agencies, Hammond said.