Q & A

Q: Why did you join Plan B?

A: To accept Plan A would mean that you would have to trust the County of Orange, and the county’s performance since Dec. 6 had been despicable. They were without integrity in their actions and their dealings with us as investors. While everybody tries to put a good face on it, that’s the reality. So I could not in good conscience go back to my bosses and say, “This will get back our people’s money.” We all knew it was a bad plan. . . . The county only had to provide its “best efforts” to pay the balance they owed everybody, and we didn’t think that was sufficient. . . . We didn’t think that they could functionally deliver it, and we were right.

Q: Was that a risky move?

A: It’s a far less risk today than it was earlier. . . . The county is going through great efforts to not have this matter litigated, yet it will be. In September, the Bs will file their claims against the county and claims against Merrill Lynch and the other investment lenders. . . . We’ve been saying to the county, is it of value to you to get this to go away? And all they have been willing to negotiate with us is to allow us to come back into the A tent and give us the same miserable deal they are giving everybody else. That’s just not acceptable. . . . I think there are a lot of people sitting out in cities and special districts that bemoan the fact that they’re not a B today.

Q: How well do you think the county has handled the financial crisis?

A: They have not done anything serious about downsizing or restructuring the county government. All the shuck and jive in the newspapers about what what they’ve done is minimal at best. I’m not impressed.

Q: Have you and the council ever gotten nervous about being one of only two cities out there with the Bs?

A: I’ve asked myself the question. I’m not any brighter, not any more ethical than my peers, nor is our council any more superior to anyone else in the county. But this City Council has . . . really come together to say this is the best way to go.