BOND TICKER : ORANGE COUNTY IN BANKRUPTCY : Silva Asks OCTA for Forgiveness

County Supervisor Jim Silva is asking the Orange County Transportation Authority’s board of directors to consider forgiving $120 million in debt the county will owe OCTA as part of the investment pool settlement agreement.

The suggestion comes after Assemblyman Curt Pringle (R-Garden Grove) and state Sen. John R. Lewis (R-Orange) sent the OCTA a letter suggesting that the agency write off the debt.

Under the settlement, the OCTA will receive in cash 77% of the $1.13 billion it had in the county investment pool, with the remainder promised by the county at a later date.

Silva said OCTA could help the county recover from its bankruptcy by forgiving a portion of the remaining money the county will owe the transit agency. He also indicated that debt relief might make the proposed half-cent sales tax increase on the June 27 ballot unnecessary.

Silva said OCTA will consider the proposal at an upcoming meeting. OCTA officials could not be reached Tuesday for comment.

Cities Working to Save Libraries

The Board of Supervisors is scheduled to consider a plan to close six of the county’s 28 libraries at a meeting on June 6.

County Librarian John M. Adams said that in the meantime, officials will discuss the proposal with the League of California Cities and with local school districts.

In an effort to cut costs, Adams proposed closing the branch libraries in Seal Beach-Leisure World, West Garden Grove, Chapman-Garden Grove, La Palma, Villa Park and Silverado Canyon at the end of June.

Residents in those communities oppose the closures and are working on ways to keep the branches open, albeit with significantly reduced hours.

La Palma might allocate money to its library, while Villa Park residents have formed a private fund-raising group. In Silverado Canyon, some residents have discussed a local assessment to benefit their library.

Last week, Garden Grove Mayor Bruce A. Broadwater formally protested the planned closures in a letter to County Chief Executive Officer William J. Popejoy.

In the letter, Broadwater said it was unfair that two branches in Garden Grove were targeted. He demanded that other alternatives be explored.

Compiled by Times correspondent Shelby Grad.