Supervisors Choose Airport Director to Run Orange County : Bankruptcy: Jan Mittermeier gets broad powers to reshape government. But some say an insider can’t succeed.

After a summer-long, statewide search for a leader to run Orange County’s bankrupt government, the Board of Supervisors looked within the county’s own ranks Monday and unanimously appointed Airport Director Jan Mittermeier to become the county’s first permanent chief executive officer.

Supervisors said Mittermeier, 55, earned their respect and the job because of the way she has managed the county’s operations since being appointed interim CEO in July. Mittermeier, who will be paid $140,000 a year, will have broad powers to reshape and reform a county government racked by the worst municipal bankruptcy in U.S. history, they said.

The board’s selection, however, was immediately criticized by some who questioned whether a 21-year county employee would be able to usher in an era of governmental change and restructuring. Mittermeier dismissed any notion that a county insider can’t initiate reforms.

“A lot of people think we’re bottom-dwelling, scum-sucking bureaucrats, feeding at the public trough. I think they are just going to have to watch what happens,” Mittermeier told reporters shortly after her appointment.

“The county is severely constrained in the amount of revenues it has now or will have in the future,” she said. “Whether I wanted to do it or not, it’s going to be essential for the county to become smaller and more efficient.”

Mittermeier’s appointment after a two-hour, closed-door board meeting came as no surprise, and ended an often tumultuous transition from a weak administrative officer at the helm of county operations to a stronger CEO position.

“Jan brings a depth of experience and knowledge to the job,” said board Chairman Gaddi H. Vasquez. “She understands county operations [and] is a well-known and highly regarded consensus builder.”

“She’s the right person at that right time,” said Supervisor William G. Steiner. “I think it would have been difficult to thrust someone new into the middle of this bankruptcy. Jan has a sense of history, and she has earned credibility by being part of the solution.”

To a large degree, Mittermeier is credited with spearheading the county’s recent recovery plan, which won state legislative approval last week. She also has been praised for helping renegotiate a settlement agreement between the county and about 200 cities, special districts, schools and other entities that invested in the county’s ill-fated investment pool, which lost $1.7 billion.

Today, Mittermeier will present the final county general fund budget for the board’s approval, completing yet another difficult task. County observers, however, are quick to note that much of the work on the budget, recovery plan and settlement agreement had been set in motion well before Mittermeier took over on Aug. 1.

Nonetheless, the board has attributed those accomplishments to her.

“All in all, I think she has the major ingredients we need to guide the county, now that we’ve got the recovery plan,” said Vasquez, who wanted a new CEO appointed before he steps down from his seat Wednesday.

While news of Mittermeier’s appointment didn’t boost prices of Orange County’s bonds on Wall Street, municipal bond traders hailed her selection as a signal that the county is recovering.

“She seemed to be instrumental in getting the county back on track with the recovery plan, so it seems like a good thing,” said Robert Gore, a municipal bond trader at Crowell, Weedon & Co., an investment banking firm in Los Angeles.

“It’s nice to see them finally getting their act together,” Gore said.

Board members decided shortly after the county’s Dec. 6 bankruptcy declaration that they needed to get rid of the county’s top administrative position and create a stronger post with an executive officer, who would have sweeping powers and authority over department heads and their budgets.

After the bankruptcy fallout forced former County Administrative Officer Ernie Schneider out of office in February, the board appointed millionaire businessman William J. Popejoy to be interim CEO. After a brief honeymoon, the relationship between the board and Popejoy soured. Popejoy quit in disgust in July, complaining that the board wanted a lackey--not a leader--in the position.

“I’m a big fan of Jan,” Popejoy said Monday. “Given the authority, she’ll do a sterling job. The only question is what kind of authority [the board] will give her. I know they’ll give her a lot of responsibility. But what kind of authority will she get?”

On Monday, Vasquez said Mittermeier will “have a wide range and latitude of chief executive officer responsibility, that is going to be stronger, more definitive” than the CAO post.

Furthermore, Vasquez said the board chose Mittermeier because she is not one to coddle the supervisors with unrealistic and rosy reports.

“She is one who is not inclined to tell you what you want to hear, but one to tell you what you need to know,” he said.

At John Wayne Airport, Mittermeier was known for her direct but low-key management style. She joined the county in 1974, working in the auditor-controller’s office before becoming assistant director of the airport in 1987. Three years later, she was chosen to head the airport. Her annual salary there was $99,000.

The terms of Mittermeier’s appointment were not immediately available. However, one high-ranking county official said that she will be extended a multiyear contract. The board will review her job performance each year, the official said.

Times staff writers Mark Platte and Debra Vrana contributed to this story.