Santa Ana, CA. -- January
16, 1996 -- Janice Mittermeier, Chief Executive Officer
of Orange County, announced today that her office has
proposed that the County Board of Supervisors adopt comprehensive
new guidelines governing the approval of any future financings
which involve the County.
The proposed guidelines will be considered by the Board
of Supervisors at its meeting on Tuesday, January 23,
1996. "These new guidelines are part of the County's
ongoing efforts to restore public confidence in County
government, and to assure the financial community that
there are excellent safeguards in place to prevent future
recurrences of the county's financial crisis," stated
CEO Mittermeier. The proposed guidelines provide for a
Public Financing Advisory Committee consisting of the
County Chief Executive Officer, the County Auditor-Controller,
the County Counsel and two public members to be appointed
by the Board of Supervisors. No proposed public financing
will be considered by the Board of Supervisors except
upon the recommendation of the Advisory Committee. The
Committee will also be responsible for the selection of
all financing professionals engaged to assist in a public
financing, subject to ratification by the Board of Supervisors.
All proposed public financings must be submitted to the
Advisory Committee for preliminary and final review. The
Advisory Committee will present its preliminary recommendations
to the Board and, if approved, the County Executive Office,
in conjunction with the financing professionals engaged
by the County, will proceed with the financing. A written
plan of due diligence to assure that any proposed financing
is fully investigated and analyzed, and that all offering
documents fully and fairly present all material facts
will be prepared. Prior to final approval of any financing,
the Board of Supervisors will receive a comprehensive
report by the Chief Executive Officer as well as copies
of all disclosure documents. The Board of Supervisors
will in turn review the Chief Executive Officer's report
and disclosure documents to assure accurate disclosure
in the County's financing documents.
The proposed Guidelines require that prior to Board of
Supervisors' final approval of any financing, the Chief
Executive Officer confirm to the Board of Supervisors
that the plan of due diligence has been completed and
that all financing professionals have provided written
certification that the offering documents do not contain
any misrepresentations or omissions of material facts.
The proposed Guidelines also ensure that political contributions
and gifts are not a consideration in the selection of
financing professionals.
The proposed Guidelines extend the ban of Municipal Securities
Rulemaking Board Rule G-37, which is limited to political
contributions by brokers and dealers, to encompass all
financing professionals who do business with the County,
including underwriters, bond counsel, financial advisors,
or other paid professionals. The proposed Guidelines prospectively
prohibit the County from retaining any financing professional
who has made a political contribution or gift to any member
or candidate for the Board of Supervisors, the Treasurer-Tax
Collector or the Auditor-Controller within two years of
the financing professional's engagement, or during the
period of any engagement with the County.
Legal