Countywide : Trustees to Vote on Investment Settlement

Trustees of the financially troubled North Orange County Community College District are to meet Tuesday to vote on repayment options offered under the county investment pool settlement agreement.

Attorney Merrill Francis, who is representing county schools in the county bankruptcy proceedings, is advising the trustees to accept Option A. Under that plan, the district would receive about 90 cents for each dollar of its pool investments but would waive the right to sue for the rest. Under Option B, the district would receive about 77% of its investment balance and retain some litigation rights.

Francis predicted that most schools will go with Option A, which he sees as the better choice.

“We tried to get more,” Francis told the trustees at a special meeting this week. “We tried to get you 95 cents, but we met with universal lack of sympathy.”

The community college district, which has an annual operating budget of $93 million, had nearly $86 million in the pool when the county filed for bankruptcy Dec. 6. That amount includes about $50 million the district borrowed to invest.

As part of efforts to help the district recover from its financial crisis, trustees are examining the feasibility of getting a bank loan to cover cash-flow shortages. The district has not issued employee layoff notices in response to the crisis, and Chancellor Tom K. Harris has assured the staff that payrolls will be met for the rest of the fiscal year.

The meeting to consider the settlement agreement options is scheduled for 5:30 p.m. at the District Education Center, 1000 N. Lemon St. in Fullerton.