Silva Accused of Sabotaging County’s Recovery Efforts

Supervisor Marian Bergeson and a top adviser to Orange County Chief Executive Officer William J. Popejoy on Friday accused Supervisor Jim Silva of sabotaging the county’s bankruptcy recovery effort by coming out against Measure R, the proposed half-cent sales tax increase on the June 27 ballot.

“It undermines the recovery plan,” said Bergeson, who is the only supervisor to publicly endorse Measure R. “As supervisors, we have to make tough decisions and we shouldn’t try to find any political refuge in making those decisions.”

Bergeson said that when Silva voices opposition to the tax proposal, “the county’s plan certainly loses credibility.”

Paul S. Nussbaum, who is Popejoy’s closest adviser on the recovery plan, was even more critical of Silva’s stance against Measure R.

“I believe this is a time for leaders of this county to offer solutions to the severe problem and not to take personal, politically expedient positions that are not solutions to our problem,” he said.

Silva refused to comment Friday. His aide, Steve Franks, said the supervisor would not respond to the criticism. Franks said Silva hopes that he and proponents of the sales tax “can still work together” to resolve the bankruptcy crisis.

The scathing remarks indicated a deep division among members of the Board of Supervisors over how to pull the county out of financial ruin, and seemed to heighten the tension in an already fragile relationship between the offices of Silva and Popejoy.

“It’s common knowledge that Popejoy is not one of Silva’s favorite people and vice versa,” said Supervisor William G. Steiner. “This clash, while significant, is not going to derail our recovery the next 60 days, but after (the June 27 election on Measure R) all bets are off with respect to the longevity of the CEO.”

Earlier this year, Popejoy denounced Silva for his reluctance to make cuts in his office while the rest of the county was embarking on severe budget reductions. Silva later conceded he was wrong and slashed his budget.

But tensions over that incident never quite eased. This week, county sources say, Silva was so upset with Popejoy that he suggested that his colleagues hold a closed session meeting to review Popejoy’s job performance.

The supervisor dropped the idea after other board members said he lacked support.

“I told him I could not back that,” Steiner said.

Silva, a freshman supervisor who took office last January, voted along with his colleagues after a marathon March 28 board session to put Measure R before voters on June 27. On Thursday, he became the first supervisor to publicly oppose the measure.

“Philosophically, I felt I had to vote to put Measure R on the ballot, but I am opposed to tax and fee increases,” he said in an interview Thursday.

But he also acknowledged that he was “still doing a lot of soul-searching” over the tax issue and is trying to come up with alternatives.

Earlier in the week, Silva attended a strategy meeting of Measure R opponents and praised their efforts.

To Nussbaum and Bergeson, Silva’s position smacks of hypocrisy.

Although he said he respected Silva’s “right” to take a stand against Measure R, Nussbaum blasted the supervisor for not presenting an alternative option to solve the county’s financial crisis.

“As an elected leader of this county, he has a clear responsibility to put forward an alternative financial recovery plan that meets the real deadlines we face this summer to avoid a default on the county’s obligations,” Nussbaum said. “It is easy to sit back and merely criticize the carefully crafted recovery plan and not offer detailed alternative solutions.”

Popejoy did not returns calls for comment Friday. But on Thursday, he expressed surprise at Silva’s stance and said it was undermining the county’s recovery effort.

“Either they are part of the problem or they are part of the solution,” Popejoy had said.

Sources close to Silva say he is angry with Popejoy for suggesting that the position of supervisor become a part-time job and for holding public forums about the county’s crisis in his district without informing him first.

Silva was the only supervisor to vote against Popejoy’s appointment to the position of CEO in February. He opposed Popejoy’s appointment, he said, because he thought a simple majority of the Board of Supervisors should be enough to terminate his contract. As approved, four of five supervisors must agree to oust the CEO. Popejoy, a retired businessman, is serving as CEO without pay.

Popejoy has said the county needs the tax hike to avoid defaulting on its debt, including more than $1 billion in bond payments due this summer.

“In a crisis, people need to pull together,” said Nussbaum. “People do that in earthquakes and fires and they should do that in this financial debacle.”

Nussbaum, 38, is a vice president at Wells Fargo Bank who has been on loan to the county as an unpaid volunteer since late February. He has been instrumental in helping Popejoy analyze the county’s fiscal problems and propose recovery solutions.

Nussbaum and Popejoy said they have concluded that the sales tax increase is a necessary component of the recovery.

Bergeson said she has reached the same conclusion. “It’s up to us to educate the public on the situation,” she said.

Among her colleagues, Steiner is the only other supervisor who has said he would support the measure but only if the county’s cities and school districts publicly endorse it.

Supervisor Roger R. Stanton and Board Chairman Gaddi H. Vasquez have not publicly said how they will vote on the initiative.

“My position is still evolving,” said Stanton, who added that he is still waiting for Popejoy to develop a “Plan B” that would outline a scenario for the county’s recovery without a tax increase.

Stanton also defended Silva’s right to oppose the tax.

“He didn’t give up his right as a citizen and he has a right to comment on the issue without getting criticized for it,” Stanton said.

Vasquez could not be reached for comment.

Steiner said it might be best if the supervisors do not actively support the measure.

Times political writer Peter M. Warren contributed to this report.