BOND TICKER : ORANGE COUNTY IN BANKRUPTCY : Fire Authority Employee to Seek Supervisor’s Post

Emmy Day, spokeswoman for the Orange County Fire Authority and political novice, announced Wednesday that she will run for Gaddi H. Vasquez’s seat on the Board of Supervisors.

Day, 52, of Mission Viejo, said she plans to run as a political outsider who wants to reform county government in the wake of the unprecedented bankruptcy.

“I don’t think we’re going to get a window of opportunity to change the system like this again,” Day said Wednesday.

Day, who grew up in Memphis, Tenn., has a master’s degree in liberal arts from Southern Methodist University. She is married, has two children and has lived in the county for 18 years.

Day said she had planned to run for the District 3 seat even before Vasquez declared last week that he will not seek reelection.

So far, the only other candidate to declare for the election next March has been state Assemblyman Mickey Conroy (R-Orange).

If elected, she said, her top priority would be “to get myself out of a job.” She said the position of supervisor should be more like a member of a corporate board of directors, who works part time and has no staff or offices.

“They shouldn’t be career politicians,” she said. “They should be more like an oversight committee.”

Popejoy Confirms Settlement Rejection

Orange County Chief Executive Officer William J. Popejoy confirmed Wednesday that he offered to settle a $2-billion lawsuit against Merrill Lynch & Co. for about half that amount, but the proposal was rejected by the Wall Street brokerage.

Popejoy said he believes Merrill Lynch should pay the county much more, but added that he offered to settle the suit for $1.2 billion to quickly help the county work its way back from bankruptcy.

Merrill Lynch’s attorneys, however, contend that the company did nothing wrong and refused to consider the offer, Popejoy said.

Merrill Lynch officials could not be reached for comment.

The county sued Merrill Lynch, contending that it helped former Treasurer-Tax Collector Robert L. Citron engage in a risky investment strategy that ultimately lost $1.7 billion and plunged the county into bankruptcy.

Trash-for-Cash Plan Is Wasting Away

Orange County’s hopes to swap trash for cash are fading, officials said Wednesday.

A plan to raise as much as $55 million a year by importing 6,000 tons of garbage a day from neighboring counties has fallen short of projections, Popejoy said. He said the county was hoping to use the anticipated cash flow to sell more bonds and raise more money for the bankrupt county.

The county is still negotiating with a handful of trash haulers that are interested in the county’s offer. But two haulers who may be prepared to begin trucking in refuse as early as August are only proposing to bring in about 1,000 tons a day and are only interested in entering into three-month-long contract intervals.

That type of contract makes it impossible for the county to issue bonds against, he said. Other trash haulers who can bring in much more tonnage are still engaged in other contracts, meaning they would not be able to begin hauling refuse into the county for several months--another setback, he said.

Compiled by Times staff writers Rene Lynch and Matt Lait.