Countywide : ‘Leave Plan Alone,’ Bus Chiefs Told

Orange County supervisors told transportation officials Thursday to abandon any attempts to tamper with the bankruptcy recovery plan that diverts more than $225 million in state bus funds to the county.

The Orange County Transportation Authority, which is taking one of the biggest hits under the recovery plan, wants to fine-tune an agreement reached between the county, the OCTA and other investors who lost money in the financial debacle.

Supervisors William G. Steiner, Marian Bergeson and Roger R. Stanton, who also serve on the OCTA board of directors, said they had no problem with minor changes, but warned transportation officials against taking any steps that could scuttle the agreement or unravel the county’s consensus efforts.

“I think we just need to get on with it,” Steiner said. “This is a delay of what is eventually our reality.”

The county declared bankruptcy Dec. 6 after a county-run investment pool lost nearly $1.7 billion on a risky financial strategy.

The county’s bankruptcy recovery plan, approved earlier this month by the state Legislature, diverts $225 million in state transportation funds for bus service to pay back county debts. The OCTA fears the loss will devastate bus service and was hoping to have the flexibility to come up with another way to turn over that money, possibly even through borrowing it.

Transportation officials said they intend to abide by the recovery plan. The fine tuning will involve reconciling minor differences between state-approved legislation and the legal term sheet signed by those who lost money in the debacle, including OCTA, said Stan Oftelie, head of OCTA.

“We support the legislation and we sent a letter to the governor asking him to sign it,” Oftelie said. “I see this as just a minor issue.”