2nd Investment Advice Panel to Be Considered

The Board of Supervisors will consider a plan today that would establish a second panel to monitor county investment practices and advise Treasurer-Tax Collector John M.W. Moorlach.

The proposal is designed to allow members of the county’s Treasury Oversight Committee to continue helping Moorlach despite a new state law that might have forced them to resign.

The law, which takes effect Jan. 1, prohibits committee members from working as brokers, securities dealers or bond underwriters for three years after leaving the panel. All five committee members are employed in the financial services industry and have vowed to resign rather than be held to the restrictions.

Under the plan before the supervisors, the five oversight panel members would step down later this month and join a newly formed Technical Advisory Committee. They would continue meeting regularly with Moorlach and reviewing the county’s investment portfolio. The technical committee does not fall under the provisions of the new state law.

The oversight committee would then get three new members: County Chief Executive Officer Jan Mittermeier, Auditor-Controller Steve E. Lewis and a representative from the Orange County Department of Education. Lewis was accused by the Orange County Grand Jury last week of willful misconduct for failing to adequately oversee the county’s failed investment pool.

Both panels are needed because the new law mandates that all counties establish an oversight committee.

An aide to Sen. William A. Craven (R-Oceanside), the sponsor of the law, said he sees no problem with the county plan.

“We wanted to set up minimal standards,” said Scott Johnson. “If the treasurer wants more input, by all means. . . . He’s more than welcome to all the advice he wants.”