Officials Assessing Impact on Transit, Public Works

Orange County Transportation Authority: “It’s accurate to say we’re under a cloud. In fact, we’re quite clouded,” said authority spokesman John Standiford, referring to the uncertainty over how the county’s financial crisis will affect the giant transit agency.

Orange County’s filing for bankruptcy protection froze about $1 billion that the transportation agency had invested in the county’s troubled portfolio. Late Wednesday night, OCTA officials announced that they will discontinue depositing Measure M revenues in the Orange County Investment Fund.

Measure M authorized a half-cent sales tax in the county to pay for a $3-billion, 20-year project to pay for transit and freeway improvements throughout Orange County.

Orange County Water District: The district Wednesday was scrambling to obtain a copy of the county’s bankruptcy petition and get outside legal advice to help it assess the impact of the county’s bankruptcy on the district. “I don’t think it will affect the employee payroll because we have other funds,” said Clark Ide, the district’s general counsel.

Orange County Sanitation District: The district was unable to make good on a $26-million loan due Wednesday because its money in the county fund was frozen by the bankruptcy. The district, however, did not default because Lehman Bros. agreed to pick up the loan. “We’re OK. Everything is moving smoothly,” said Gary Streed, director of finance for the district. “We’re doing what we can to find other sources of money. We’ve got plenty of money. It’s just in the wrong bank right now.”

The district Wednesday met its $1-million biweekly payroll, but when payday rolls around again in two weeks there won’t be any checks for the district’s 600 employees unless the county releases some funds, said district spokeswoman Corinne Berenson.