ORANGE COUNTY IN BANKRUPTCY : Road Projects to Go Ahead, Official Says : Construction: County transportation authority says ongoing works, such as the Santa Ana Freeway widening, will proceed despite the county’s bankruptcy.

Jim Kenan, director of finance and administration for the Orange County Transportation Authority, reassured employees Monday that regardless of the county’s bankruptcy, the transportation agency should be able to complete ongoing projects.

“Over the short term--and the long term--we will be fine,” Kenan said Monday during a quarterly employee’s meeting. “But it is going to be a struggle over the next couple of months.”

The transportation authority is the single largest investor in the troubled county investment pool, which this year has lost $2.02 billion, or 27% of its value. The agency has more than $1 billion invested with the county, and questions have surrounded its ability to complete several major road projects underway in Orange County.

Kenan told the audience that if all goes well, none of OCTA’s major projects will suffer, it will be able to meet its nearly $6 million monthly payroll and it should be able to make a $46 million bond debt repayment, due Feb. 15.

Construction will go on as planned on the $2-billion widening of the Santa Ana Freeway, including improving the interchange connecting it with the Costa Mesa Freeway and with the Garden Grove and Orange freeways, he said. The addition of new lanes and on- and off-ramps at the El Toro “Y” will also be unaffected, as will the addition of car-pool lanes to Interstate 5 south of its intersection with the San Diego Freeway.

But Kenan said this plan depends upon the transportation authority receiving continued assistance from state government, which is not guaranteed.

It must have its state sales tax proceeds, which are normally channeled through the county before they reach the agency, instead placed directly in OCTA’s treasury. Such appeals are now being made by OCTA in bankruptcy court and would bring the agency an additional $5.8 million per month.

Sales tax revenue, however, will not be enough. Kenan said OCTA is petitioning both state and federal sources for additional advances on anticipated funds. Gov. Pete Wilson acting to expedite the disbursement of $15.2 million of state funds to the authority last week was a heartening sign, Kenan said, adding that he expects other government agencies also to be cooperative.