ORANGE COUNTY IN BANKRUPTCY : DAILY DEVELOPMENTS

AUCTION TODAY: Thomas W. Hayes, the county’s chief financial adviser, announced that $1 billion of the safest remaining securities will be auctioned this morning. He said that the auction will be the first step toward restructuring the county’s investments and bringing badly needed cash.

* TASK FORCE: Business leaders announced creation of a high-powered team to help the county improve its image and restore its financial health. Executives from Taco Bell and Rockwell Corp. are among those taking active roles.

* STREAMLINING GOVERNMENT: Supervisor Roger R. Stanton is forming a task force to study cutting down on the size of Orange County government. Peer Swan, Swan chairman of the Irvine Ranch Water District, said such a move “could be the silver lining in this cloud.”

* QUICK CONSENT: County records show that the Board of Supervisors rubber-stamped requests for more than $1.3 billion in notes, even after then-Treasurer Robert L. Citron’s investments had been publicly questioned.

* WHO’LL GET PAID? Anxious creditors lined up for a shot at the bankrupt investment fund at the U.S. Trustees office in Los Angeles. They sought spots on the creditors committees, which provide the best opportunity to represent a creditor’s interest.

* HEALTH SERVICES: Officials said that preventive health services may have to be put on hold while other crucial services, such as immunizations and AIDS services, take priority.