HomeMy WebLinkAboutOrange County Investment Pool Committee Conceptual Plan to A el-
Council/Agency Meeting Held ?=�
Deferred/Continued to I
❑Approved Conditionally Approved ❑ Denied ity Clerks Signat e
Council Meeting Date 08 07 95 Departni not ID Number AD95-102
CITY OF HUNTINGTON BEACH
II
REQUEST FOR COUNCIL AC ION
SUBMITTED TO HONORABLE MAYOR AND CITY COU14CIL MEMBERS
~ SUBMITTED BY MICHAEL T UBERUAGA CITY ADMINIISTRAT �—
PREPARED BY RICHARD BARNARD DEPUTY CITY AUMINIZ51 RATOR
I
SUBJECT ORANGE COUNTY INVESTMENT PO COMMITTEE
CONCEPTUAL PLAN TO ADDRESS O "ANGE COUNTY
BANKRUPTCY
Statement of Issue Funding Source Recommended Action Alternative Action Analy I is Environmental Status Attachment(s)
Statement of Issue �� � � I���y,,��,�����a � �
On Monday July 31 1995 the Orange County Investment fool Committee (OCIP held a7G
press conference at which time they unveiled a conceptual plan directed toward resolving
the Orange County Bankruptcy The conceptual plan is beingi presented to the City Council
to determine whether Council wishes to support, oppose, o take a neutral position on the
OCIP Plan
Funding Source
N/A
Recommended Action
Staff recommends that the City Council support the OCIP C nceptual Plan with the caveat
that the City Council reserves its right to modify its position s refinements and definition to
the OCIP Plan are developed If there are elements of the p an which are determined to be
detrimental to the city interest then the Council would consid modifying its position
Alternative Action(s)
1 Oppose the OCIP Conceptual Plan
2 Take no position on the OCIP Plan
i
1
*QUEST FOR COUNCIL AC ,IN
MEETING DATE 08-07-95 DEPARTMENT ID NUMBER AD95-102
Analysis
Attached to this RCA is an outline of the OCIP Conceptual P an as presented at the July 31,
1995 press conference This plan has been prepared in response to a county plan which
would have diverted a significant amount of funds from [opal cities and special districts
While there remain many unanswered questions regardin i implementation of the OCIP
Plan staff is of the opinion that of the plans put forth thus ft r the OCIP Plan has the least
impact upon our city The OCIP Plan also appears to focu-, attention upon those Orange
County assets which have significant value and which coul( be sold (transferred) to other
governmental agencies within Orange County who have available to them financial
resources to pay the county for their assets The revenues derived from the sale of county
assets would then be available to the county to meet debt obligations which would lead
toward resolution of the county s bankruptcy
SB 75 Polanco - Proposed legislation that addresses b th Orange and Los Angeles
Counties fiscal needs
Legislation (SB75 Polanco) has been approved by both the State Senate and State
Assembly and sent to the Governor for his signature whic attempts to address both the
Orange and Los Angeles Counties fiscal needs Included n SB 75 are provisions which
would authorize the County Board of Supervisors to set asidyl$70 000 000 annually for the
next 15 years of revenues that currently goes to the range County Transportation
Authority (OCTA) Under this legislation this revenue would a used to meet Orange County
debts related to the Orange County Bankruptcy The Gov 'lnor has until August 14 1995
to take action on the bill It has been reported in the media that the Orange County
provisions of the bill are acceptable to Governor Wilson th re have been reports that the
Los Angeles County provisions of the bill may be a barrier ti the Governor signing the bill
Staff will continue to monitor this bill
Environmental Status
N/A
Attachment(s)
Em
1 Outline of the Orange County nvestment Pool Committees
Conceptual Plan
2 SB75 (Polanco) - Proposed State legislation which addresses
both the fiscal needs of Orange a 1�d Los Angeles Counties
0013644 01 2 08/02/95 12 08 PM
Objectives
o a o o o
• Contain Orange County government problems
in Orange County
� -- -•-p-a - 11--b-on:ld-a g d�e-n do-r--d-eft
• Restore investor confidence in Orange County
government
• Continue to place schools as a priority
• End the Orange County bankruptcy
•
The Plan
0 0 0 0 0
• A Consortium of government agencies provides $415
million to finance County note shortfall and vendor debt
e In_exchange,Count-y=sells two-assets -- John Wayne
Airport and operating landfills -- to other government
agencies
• Revenue from asset sales and County note reserves retire
the notes and vendor debt
• Consortium agrees to purchase $110 million in Certificates
of Participation
• • OCIP Committee consents to open the Settlement
Agreement to allow for debt restructuring
a
Three Steps to End Bankruptcy
o o o 0 o
• Step 1
- Transfer John Wayne Airport and rights to a
� future airport at El Toro MCAS to the OCTA in
exchange for urban rail capital funds
- Transfer title to operating landfills to the Orange
County Sanitation Districts
- Proceeds of the transfer are used, along with
County's note reserves, to repay $800 million of
Note Debt, Court directed payments to minors,
• Interpleader Deposits with the Superior Court and
Vendor Debt
Three Steps to End Bankruptcy
0 0 0 0 0
• Step 2
- Consortium agrees to purchase $ 110 million
of=C- ORs .
- First $50 million goes to pay the schools .
- Next $60 million goes to pay Settlement
� Secured Claims.
Three Steps to End Bankruptcy
� o o o a
• Step 3
- Remaining debts are restructured . Pool
rl-a Era�s=aKe=ccc��a-b-E ip#o=eye-=c�a'
- Pool claims will be non-recourse to the
County after $265 million
� - The County's loss will be the last paid .
0000a
Pool Participants Benefits
• Benefits
- Purchase airport and landfills
• - M-o-r-e-c-o-ntr-o-l-o-f-th-e-litiqation
- $50 million for the schools and $60
million for Settlement Secured Claims
- Remaining OCIP claims are ahead of the
County
- End of Bankruptcy
� - No more funding raids
Pool Participants Costs
0 0
c osts
- Recourse on $444 million of Repayment
• Claims
- $415 million cash
- Debt limitation litigation
- Allowing debts to be paid ahead of the
Settlement Secured Claim
•
County Benefits
o o a o a
• Benefits
- Immediate repayment of all note debt, vendor
� debt, Superior Court Interpleader deposits,
e p_�a�yme�ns o minors
- Non-recourse treatment on $444 million of
OCIP claims
- Avoids cost and cumbersome process of a plan
of adjustment
- Eliminates debt limitation litigation
� - Bankruptcy ends
County Costs
o 0 o o o
• Costs
- Loss of Airport and Landfill
• - $445 million of Debt Reserves
- County subordinates its remaining
loss to pool participants
Loss of control of the litigation and
bankruptcy
•
o
Results
o o 0 o
• Municipal market is reassured
- $800M of Note debt is repaid
• - Provides .a $50M first priority to Orange County
c oo from the sa e o the C U' s
• All claims other than governmental entities are paid
- Vendor claims are paid
- Superior Court Interpleader Deposits and Court
directed payments to minors are restored
• Schools remain first priority
� • Permits a quick resolution of the bankruptcy
EIJI BY w-F1Lt,
f
•
1
Display 1995-1996 Bill Text - INFORMATION PAGE
BILL NUMBER SB 75
BILL TEXT'
AMENDED IN ASSEMBLY JULY 30, 1995
AMENDED IN ASSEMBLY JULY 25, 1995
AMENDED IN ASSEMBLY JULY 1, 995
AMENDED IN SENATE MAY 30, 995
AMENDED IN SENATE APRIL 24 1995
AMENDED IN SENATE APRIL 17 1995
AMENDED IN SENATE MARCH 30 1995
AMENDED IN SENATE MARCH 13 1995
AMENDED IN SENATE FEBRUARY 23, 1995
INTRODUCED BY Senator Xnpp Polanco
(Principal coauthor Senator Ha den
SPrincipal coauthor Assembly Member Villaraigusa)
(Coauthors Assembly Members E_ scutia, Katz and
Kevin Murray)
JANUARY 9, 1995
An act to ahead Section 2156 afF and to add se tiers 2144 to;
the Electrons Bode; relating to voter xegtetratte - An act to add
and repeal Sections 29530 3 and 29530 5 of the Go ernment Code, to
add and repeal Sections 99310 55 and 180205 5 of the Public
Utilities Code, to add and repeal Section 96 19 of the Revenue
and Taxation Code, and to add and repeal Section ]88 95 of the
Streets and HighwaYe Code, relating to local oveznment finance
LEGISLATIVE COUNSEL S DIGES
SB 75, as amended, Kopp Polanco voter regtst atronr absentee
ballot applteattens Local government finance Lo3 Angeles and
Orange Counties
Existing law authorizes a county board of su a visors, pursuant
to a contract with the State Board of Equalizatio , to provide for
She deposit in a local transportation fund of tho a revenues
attributable to a specified portion of the sales nd use tax rate
levied in a county pursuant to the Bradley-Burns oniform Local
-
7 90
PAGE Display 1995-1996 Bill Text - INFORMATION 2
BILL NUMBER SB 75
$ILL TEXT
Sales and Use Tax Law
This bill would, as provided, authorize the board of supervisors
for the County of Los Angelpa to modify its contract with the
State Bnard of Equalization to require that a s egLfied portion of
thosc same attributable revenues be deposited i the county general
fund
This bill would, as provided with respect to taxes levied prior
to July l� 2011, authorize the board of supervisors for the County
of orange to modify its contract with the State Bard of
Equalization to provide for the deposit of those APecified revenues
into the county general fund, and for the deposit into the
county'a local transportation fund of certain revenues derived from
a transactions and use tax imposed in the county or transportation
purposes
Existing law with respect to a local transactions and use tax
imposed by a local transportation authority autho zzes the allocation
of revenues derived from that tax for the funding of various
transportation facilities and servicesT
This bill would, until January 1 2012, re uir a specified
portion of those revenues derived from a transact ong and use tax
imposed �!y a transportation authority in the County of orange to
be allocated to the local transportation fund of that county as
established pursuant to a specified statute
Existing law establishes the Transportation PlInning and
Development Account in the state Transportation Fund and provides
that the funds in the account shall be available, upon
appropriation �y the Legislature, for expenditure for transportation
planning and mass transportation purposes Existing law further
provides for allocations to be made from the acco nt to local
transportation agencies and commieexons
This bill would, as provided, reduce the amour Hof revenue to
be allocated to the Los Angeles Metropolitan Tran ortation Authority
by a specified amount if that authority fails to elect to deposit
that same amount into the local transportation furid of the county
of Los Angeles
Existing law establishes the State Highway Account and provides
for the allocation of account funds �y the Califo nia Transportation
Commission with respect to the counties in accordance with certain
programs and formulas applied for specified time eriods
This bill would, as provided, reduce the amuun of revenue
allocated from the State Highway Account for expe diture in the
County of Los Angeles �X the difference between 2 amounts otherwise
specified j�y this bill
Existing law requires the county auditor, in a ch fiscal year, a
to allocate prorerty tax revpnups to local 7uris7d ctions in
accordance with specified formulas and 2rocedures, and generally
provides that each jurisdiction shall be allocated an amount equal
to the total of the amount of revenue allocated t that
jurisdiction in the prior fiscal year, sub ect to certain
modifications, and that Jurisdiction s portion of the annual tax
Display 1995-1996 Bill Text - INFORMATION PAGE 3
BILL NUMBER sA 75
BILL TEXT
increment as defined
This bill would for the 1995-96 to 2010-11 fis al years
inclusive, require the auditor for that county to allocate to a
separate restricted account in the county treasury for a specified
purpose certain amounts of proporty tax revenues that otherwise
would be allocated to the County a£ Orange Ba+ i sin new
duties u on the auditor for the County of Orange p the annual
allocation of property tax revenues, this bill wod impose a
state-mandated local program
This bill would make legislative findings and eclarations as to
the necessity of a special statute
This bill would provide that specified provisi ns of the bill
would not become operative unless _legislation is 9nacted in the
1995-96 Regular Session or the 1995-96 Second Extraordinary SesgiOri
that specifically authorizes or provides for the establLshment of a
state-appointed trustee with specified authority
The California GonstitutLon requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims
Fund to Pay the costs of mandates that do not exc ed $1,000,000
statewide and other procedures for claims whose s atewide costs
exceed $1,000,000
This bill would provide that, of the Commi.6 8ipr on State
Mandates determines that the bill contains costs andated bar the
state, reimbursement for those costs shall be mad pursuant to
these statutory provisions .__.
*It Existing law spectftes the procedures appl eabfe to the
registration of voters-
This bill would impose a mi4A+Le-mandated leeal regram by
requiring on eleeter who registers to rote in person at the efftee
of the county elections offiezal to dxeplap a valid term of
tde:3tifieatien as defined to means a birth eertift ate= pa5aport; or
naturalization eard-
t2f Existing law requires that a veterla affidavit of
registration show specified items of informattent including the
afftantte eceupatiens
Thth hill would delete the requirement that the affidavit of
registration dhow the afftantie oeeui+atTon-
f3f Extsttng law requires that the affidavit a Iregxdtxatten show
the affxant�a residence telephone number- It pro idea that no
person shall be denied the right to register bee* se of his or
her fatlure to furnish a telephone namberp and re uiree that the
affiant be so advised on the voter reg:atratzan a rd=
This bill would instead require that the affiant be advised an
the affidavit pertton of the voter registration card that furnishing
a telerNt%mr number fa optlenal-
Whas bill would also require that the affrdav= of reglstratten
show the number of the affxarttl-s ealtfernin dr2we is i*eense or
eallfernfa tdentifieatton card; and would make prevision of this
SENT BY OFFICE, 7 d1 95 2 19P11, /1412d4bbl , #5/10
PAGE q
Dieplay 1995-1996 Bill Text - INFORMATION
SILL NUMBER SB 75
BILL TEXT
informattan epttenaf with the afftant- It would s eetfy that ne
person shall be dented the right to register beeau a of his or
her fatlure to pravtde one of these numbers- and shall be ea
advraPd an the rater regtstratten cardr
%Eke provtstens described rn paragraph f3} would beeome operative
only tf 68 681 and AS 1401 do not became eperative
14t This bill mould enact alternative prevision that weu+d
require fat that an afftant be advtsed on the aff provision
pertten of
the voter regtstratten card that furntehxng a tele hone number is
epttenai- and fbt that the affidavit of regratratt n show the
number of the affiant'ti ealtfornta driver's Ircene r ealrfornia
Identification card number; or other identzfzeatio: number an
speetfted by the secretary of state- it would pre tde that no
person shall be denied the right to register because of hie or
her fat+ure to furnish one of these numbersp and shall be se
advtsed on the voter regtstratton card-
The prevtetons deseribed Tn paragraph f4t would became aperattve
only tf 6B 584 and AB 44e1 are both ehaptered,- and this bill in
ehaptered last-
The eaitfornra eonetttutlen requtres the state t5 reimburse loeal
agenetes and school dTstrset, for certain casts ma dated by the
stater statatery pravistens establtsh procedures For making that
rezmbarsementr
lPhts bill would provide that me reimbursement is required by
this net far a speetfted reason-
vote majority Appropriation no Fiscal c mmittee yes
State-mandated local program yes ,
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWSt
6HeTleN I- 8eettan E144 is added to the Eleette s
SECTION 1 ia
It is the intent of the Legislature in enacting
this act not to require the immediate appointment of a trustee for
the County of orange, but rather to allow for that possibility
should the county fail to submit and receive court approval for a
plan of adjustment in a timely manner
Prior to the beginning of the interim stud recons of the
PAGE 5
bispla} 1995-1996 Bill Text - INFORMATION
BILL NUMBER SB 75
BILL TEXT
1995-96 Regular Session, st is the Legislature s lintention to
formulate legislation that will ensure that the sales tax revenues
specified in this act are administered in a fisroill prudent
manner This includes the poasihility of conditi nLng transfer of
the specified gales tax revenues on the timely �S2proval of a plan
of adjustment by a federal bankruptcy court
SEC 2 Section 29530 3 is added to the Government Code, to
read
29530 3 jai Notwithstanding a,ny other provispLon of law, with
respect to local sales and use taxes levied for a ich of the
1995-96 to 1999-2000 fiscal years, inclusive, the board of
supervisors for the County of Los Angeles may annially, upon the
adoption of a resolution approved by a majority o all of its
members no later than August 4, 1995, with res ec to the 1995-96
fiscal year and no later than the preceding May 1 with respect to
any other relevant fiscal year, modify its contra t with the State
Board of Equalization, as described in Section 29530, to require
that fiscal realignment revenues be deposited in he county general
fund For purposes of this section, fiscal real cjlment revenues
means that amount of those county sales and use t x revenues
dpnrribed in Section 29530, not to exceed seventy-five million
dollars ($75,000,000) annually, that otherwise wo ld be allocated in
each relevant fiacal year from the county s local transportation
fund to the Los Angeles Metiopolitan Trans ortati n Authority
This section shall remain in effect only until January 1
2001 and as of that date is repealed unless a 1 ter enacted
statute that is enacted before January 1, 2001, �Ieletes or extends
that date
SEC 3 Section 29530 5 is added to the Govern ent Code, to
read
29530 5 (a) Notwithstanding 21r other provisLon of this article,
the board of supervisors for the County of Orange may, upon the
adoption of a resolution approved by a majority o all of its
members, modify its contract, as described in Sec ion 29530, witli
the State Board of Equalization to require, with es ect to taxes
levied prior to July 1, 2011, both of the followi- ig
III That those count, sales and use tax revenu s described in
section 29530 be deposited into the county qenerall fund
ja That transportation realignment revenues a defined in section
180205 5 of the Public Utilities Code be dee2r.Lted in accordance
with that section in the county's local transportation fund as
described in Section 29530
The modification authorized �y this section is not applicable
to the City of Laguna Beach
T c) This _section shall remain in effect only until January 1
2012, and as of that date is repealed, unless a 1 ter enacted
statute, that is enacted before January 1, 2012, eletes or extends
that date
SEC 4 Section 180205 5 is added to the Publl Utilities Code,
to read _._,_
IU
Display 1495-1996 Bj-11 Text - INroRMATION PALL 6
BILL NUMBER SB 75 '
BILL TEXT
180205 5 (a) Notwithstanding any other Provision of this chapter
and sub]ect to subdivision (b) , those trans orta ion realignment
revenues derived in the County of Orange from a tax imposed
pursuant to this chapter maw be deposited in the local
transportation fund established in the treasury f that count
pursuant to Section 29530 of the Government Code For purposes of
this section, "transportation realignment revenues" means those T
revenues, attributable to that pardon of the to rate imposed in
the County of Orange pursuant to this chapter that exceeds 0 25
percent, that are determined Ly the Orange County Transportation
Authority Board of Directors not to be necessary for the funding
of outstandipq indebtedness or other outstanding contractual
obligations of the transportation authority esta lished in the County
of Orange pursuant to Chapter 2 (cammencinq with section 180050)
(b) (1) Revenues deposited pursuant to subdivision (a) shall only
be expended in accordance with the transportation expenditure plan
adopted with respect to the County of Orange ursuant to Section
180206
This section shall become operative upon the operative date
of a resolution adopted by the board of supervisors for the County
of Orange pursuant to Section 29530 5 of the Government Code
(1) This section shall remain to effect only uIntil January 1,
2012, and as of that date is repealed, unless a hater enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date
SEC 5 Section 99310 55 is added to the Public Utilities Code,
to readT
99310 55 Aal For each of the 1995-96 to 1999-2000 fiscal
years, inclusive, the amount to be allocated urs ant to this
article for the relevant fiscal year_ to the Los A seise
Metropolitan Transportation Authority shall be re, uced by the
transportation services support amount unless the authority elects
for that fiscal year to deposit that amount into the county's
local transportation fund established pursuant to Section 29530 of
the Government Code Any moneys deposited in the county s local
transportation fund pursuant to the preceding send ence shall be
available for allocation exclusively to the Los Angeles Metropolitan
Transportation Authority for bus operations
J. For purposes of this section, transportation services support
amount" means that amount of revenue that is P ual to the amount
of revenue transferred to the county general fund pursuant to
Section 29530 3 of the Government Code, other than revenues that is
necessary to fund the outstanding indebtedness or other outstanding
contractual obligations of the authority, or revenue the deposit of
which in accordance with paragraph (1) is prohib ted by the
California_ constitution
If for any relevant fiscal year the Los Angeles County
Metropolitan Transportation Authority does not elect to deposit_ the
transportation services support amount into the county s local
transportation fund as provided in paragraph 1 and the
PAGE 7
Display 1995-1996 Bill Taxt - INFORMATIUN
BILL NUMBER SB 75
BILL TEXT
transportation services suppoLt amount exceeds the amount to be
allocated to the authority pursuant to this art c e in the absence
of any reduction pursuant to era ra h (1), the d fference between
these latter two amounts shall, in accordance with Section 188 9 of
the Streets and Highways Code, be deducted from t e amount of
revenues allocated from the State Highway Account for expenditure in
the county for rail transit purposes
Bus service shall not be directly or indir ctly reduced as
a result of this section or of any other rovisio of the act
adding this section
JSJ This section shall remain in effect only until January 1.
2001 and as of that date is repealed unless a 1 ter enacted
statute, that is enacted before January 1, 2001 - 1 etee or extends
that date
SEC 6 Section 96 19 is added to the Revenue Ind Tdxdtion
Code, to read
96 19 (a) Notwithstanding any other provisioi of this article
and subject to subdivision (b) , for the 1995-96 f seal ey ar, the
auditor shall, from those revenues that are otherwise required by
Section 96 1 to be allocated to the County of Orazige allocate the
amount of seventy million dollars ($70 000,000) which the
treasurer-tax collperter shall deposit in a separate restricted
account in the county treasury to be used only fo the payment of
county obligations with respect to debt tv be 155 ed upon
confirmation by the bankruptcy court of the plan of adjustment of
the debts of the county
Far purposes of property tax revenue alacations in the
County of Orange for the 1996-97 fiscal year to t$e 2010-11 fiscal
year, inclusive, the amount of property tax reven a allocated
pursuant to subdivision Sa to the finance authority dpsrrihpd in
that subdivision shall be deemed to be an amount �f property tax
revenue allocated to that authority in the 1995-96 fiscal year, and
shall commensurately reduce the amount of ro eit� tax revenue
deemed allocated to the County of Orange for that same fiscal
year
ThLs section shall become inoperative on Ju 1, 2011, and,
as of January 1 2012, is repealed, unless a late enacted
statute, that becomes operative on or before Januar 1, 2012,
dplptes or extends the dates on which it becomes no erative and
13 repealed However, commencing with the 2011-1"2 fiscal year, the
auditor for the county of orange shall annually allocate property
tax revenues in those amounts that would be _deter�ined in the
absence of the application of this section to rev u allocations
for prior fiscal years
SEC 7_ Section 188 95 is added to the Streets and Highways
ways
code, to read
188 95 SaZ Notwithstanding any other provision of law, for each
of the 1995-96 to 1999-2000 fiscal years, fnclusi e, in any
qualified overage fiscal year the amount of revs ue allocated for
that fiscal year for expenditure in the County of Los Angelea from
SENT BY OFFICE, 7 31 95 2 22P[v, 7141234567 = , #9/10
PAGE $
Display 1995-199b Bill Text - INFORMATION
BILL NUMBER SB 75
HILL TEXT
the State Highway Account shall be reduced by the excess of the
transportation servicPn support amount as defined in paracLraph
of subdivision (a) of Section 99310 55 of the Pub is Utilities cede
over the amount to be allocated for that fiscal year to the Los
Angeles Metropolitan Transportation Authority from the Transportation
Planning and Development Account in the absence a a� reduction
pursuant to that same section For purposes of this section,
qualified overage fiscal year" means a fiscal le
r that meets the
conditions specified with respect to a "relevant fiscal year" in
Para raph � of subdivision (a) of Section 99310 55 of the Public
Utilities Code T __
(b) This section shall remain in effect only until January 1,
2001, and as of that date is repealed, unless a later enacted
statute that is enacted before January 1 2001, eletes or extends
that date
SEC 8 The Legislature finds and declares tha a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the uniquely severe fisca crises currently
being experienced 12y u
the County of Los Angeles and the Conty of
orange
SEC 9 (a) Sections 3, 4, and 6 of this act s all not
become operdtive unless legislation is chaptered n the 1995-96
Regular Session or the 1995-96 Second Extraordinaity Session that
specifically authorizes or specifies conditions f r the establishment
of a state-appointed trustee who shall have, at a minimum, the
authority to do all of the following
(1) Supervise all matters relating to the bud t and fiscal
affairs of the County of Orange
() Order the county to file a motion to dismi s any pending
petitions that have been filed, on behalf of the Oounty of orange,
under Chapter 9 (commencing with Section 901) of itle 11 of the
United States Code Upon the United States Bankr .,ptcy Court
dismissing the petition, the trustee shall have t e authority to
adjust, settle, reorganize, and negotiate any outotanding debts_ or
obligations of the county that were otherwise subject to the
jurisdiction of the bankruptcy court
() On behalf of the County of Orange, submit I plan for the
adjustment of the county s debts, as provided in section 941 or
Section 942 of Title 11 of the United States Code
A condition for the establishment of a eta e-appointed
trustee may include, but need not be limited^to, he failure of
the County of orange to receive court approval fo a plan of
adjustment
SEC 10 Notwithstanding Section 17610 of the �overnment Code,
if the Commission on State Mandates determines th t this act
contains costs mandated bX the state, reimburseme t to local
agencies and school districts for those coats shall be made
pursuant to Part 7 commencing with Section 17500 of DLvision 4
of Title 2 of the Government Code If the statew de cost of the
7
PAGE 9
Display 1995-1996 Bill Text - INFORMATION
BILL NUMBER SB 75
BILL TEXT
claim foi reimbursement does not exceed one mill on dollars
($1,000,000) reimbursement shall be made from the State Mandates
Claims Fund
Notwithstanding Section 17580 of the Government Code, unless
otherwise 22ecified the provisions of this act shall become
operative on the same date that the act takes eft et pursuant to
the California Constitution
All matter omitted in this version of the bill appears in the bill do
amended in the Assembly, July 25, 1995 (JR 11)