ORANGE, California -- August 28, 1995 -- The
County Transportation Authority (OCTA) board of directors Monday
voted to approve in concept the
County of Orange bankruptcy recovery
consensus plan where each agency represented by the Orange County
Investment Pool (OCIP) and the county will share the financial
The consensus recovery plan transfers $38 million a year for 15
years from OCTA to the County of Orange beginning July 1, 1996,
according to a bankruptcy recovery report presented to the OCTA
board Monday. The plan also calls for transfer of $23 million of
the county's yearly $33 million gas tax funds for 16 years beginning
July 1, 1997, the report stated. The County of Orange would retain
the remaining $10 million for road operations and maintenance.
In addition, the county will carry a repayment claim of $225
million to the OCTA to reconcile the net loss of $15 million
annually for 15 years.
As part of the consensus plan, a $50 million litigation trust
fund will be established. Former State of California Treasurer Tom
Hayes will serve as trustee and chairman of a litigation committee
to oversee efforts to prosecute, collect and/or settle pool-related
claims, the report stated.
The County of Orange, the OCIP Committee, OCTA and each "Option
A" pool participant must approve the consensus plan for it to become
effective. Special legislation also will be required to activate
OCTA Bus Operations Service Cuts Predicted
OCTA developed two plans for bus service cuts in response to the
TDA funding loss in the bankruptcy consensus proposal, according to
The first projection assumes "a worst case scenario" of $38
million in lost TDA revenues annually with no opportunities to
recoup the monies. Under the first option, OCTA would have to
eliminate 49 of 73 bus routes representing a dramatic 57 percent
service reduction. Service also would be less frequent on the
remaining 24 routes.
OCTA would discontinue all express bus, rail connectors,
community routes, Headstart routes, and group service, the report
said. OCTA would also discontinue service to South Orange County
and drastically reduce weekend service from 43 to 15 routes on
Saturday and from 35 to 0 routes on Sunday.
The Authority would have to limit ACCESS service for persons
with disabilities to those living within 3/4 miles of the remaining
big bus system. South Orange County ACCESS service would cease, the
Under this scenario, OCTA's bus fleet would shrink from 628
vehicles to 283. The workforce would see a corresponding layoff of
about 500 employees from administration and bus drivers and
$15 Million Deficit Scenario
The second scenario assumes a $23 million backfill leaving a
deficit of $15 million each year (following a first year loss of the
full $38 million). OCTA would use the $23 million in gas tax
apportionments transferred from the county on other OCTA or
countywide approved and funded transportation projects, thereby
freeing up unrestricted funds for the bus system.
The $15 million loss also has significant negative impacts.
OCTA would eliminate 31 of 73 bus routes representing a 21 percent
service cut. The remaining 42 routes would experience a service
reduction of 10 percent. OCTA would also have to reduce weekend
service from 43 to 36 routes on Saturday and 35 to 30 routes on
Express bus and rail connections as well as the eight new
customized community routes (set for implementation Oct. 1) would
discontinue. OCTA would limit ACCESS service to a federally-
required 3/4 mile corridor of the fixed route big bus system and
service to South Orange County would be reduced from 22 routes to
eight routes. The bus fleet would shrink from 628 vehicles to 507
and OCTA would layoff 200 employees, the report stated.
The bus service cut analysis took into account that OCTA would
maintain the most productive routes (using ridership and farebox
recovery criteria). Services used by those who have no other means
of transportation received priority over discretionary services such
as express and rail connector routes. The service cut analysis also
assumed federal operating and property tax funding levels to hold at
their current levels, the report stated.
Once final legislation is signed by Governor Pete Wilson, and
the exact funding loss in known, OCTA will begin work on a detailed
analysis of the bus operations impacts and return to the OCTA board
in 120 days with a report.
At that time, the board will face making several key policy
decisions such as refilling the $15 million deficit through cutting
other programs or where and how bus operations service cuts should
be made, according to the report.
The consensus proposal is in response to a comprehensive
financial recovery plan presented by the County of Orange in mid-
August. That plan contained six alternatives -- all of which called
for taking $35 to $76 million from OCTA by diverting Transportation
Development Act (TDA) monies used to fund bus operations.
Subsequent to unveiling of the County's comprehensive plan other
agencies developed recovery proposals for consideration.
In response to the County's proposed comprehensive financial
recovery plan with its multiple alternatives, Wilson requested the
Orange County Business Council help negotiate a consensus proposal
between the county and the OCIP. When the plan is finalized, and
the OC Board of Supervisors adopt it, the OCTA board will hold a
special meeting to consider the joint agreement.
Elaine Beno, 714/560-5571
SALT LAKE CITY, August 28, 1995 -- href="chap11.bonneville.html">Bonneville Pacific
Corporation, through its Chapter 11 Bankruptcy Trustee (Roger G.
Segal), announces today that a settlement has been reached with one
of the numerous defendants in the civil action entitled "Roger G.
Segal, Trustee v. Portland General, et al," now pending in the
United States District Court for the District of Utah, Case No. 92-C-
The settlement is with Hanifen-Imhoff (Denver, Colorado) and
provides for a payment to Bonneville Pacific Corporation of the
total sum of One Million Seven Hundred and Fifty Thousand Dollars
The settlement is conditioned upon approval by the United States
Bankruptcy Court and the entry of an appropriate dismissal order by
the United States District Court.
/CONTACT: Roger G. Segal, Chapter 11 Trustee for Bonneville Pacific