WESTMINSTER : City Selects Option A to Recoup Investment
The City Council this week unanimously approved a settlement option offered by the county that guarantees the city 76% of its investment but limits its right to sue.
The council, in a previous meeting, had sought the full return of its funds, proposing that the county release 50% of all investors’ money immediately. It had proposed that full payment be made once an acceptable county plan was presented and accepted by the investors.
However, Mayor Charles V. Smith urged the council to approve the settlement offered by the county, saying that several proposals in the state Legislature could endanger investors’ ability to have their funds returned.
Smith was referring to bills pending in Sacramento that would appoint a trustee to oversee the county’s investment pool.
“We need to get our money out quickly before the state imposes a trusteeship,” said Smith.
Under Option A, the county will pay the city about 76% of the $100,000 that it had in the county pool when it collapsed in December. Another 4% will be paid in the form of notes that can be cashed by June 5. The remainder of the funds will be paid at an unspecified date.
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