Town of Mammoth status report

mammothtownofficesThe resolution of the Town of Mammoth Lakes $41 million debt continues to unfold under the radar.  Officials have made little comment.

When asked about the Mammoth Lakes Land Acquisition talks, Mammoth Mayor Jo Bacon said, “There’s not much we can speak to.  It’s all in closed session.”  Asked about the big picture, Bacon said the Town is still sharing information with MLLA officials.  “There are no significant developments,” said the Mayor.  She said the Town has given MLLA all of the information they’v asked for and they are “digesting it.”

The Mayor referred us to Marianna Marysheva-Marinez, the former Interim Town Manager who has continued to be retained at $4,000 per week as a consultant to work on the debt issue and some other financial matters.  She was not available for comment this week. One of the options open to the Town is municipal bankruptcy although officials have repeatedly said they do not want to go that route and neither does MLLA.

When earlier asked about the potential impacts that municipal bankruptcy might cause if Mammoth chooses that route, Martinez did provide Sierra Wave with an article from The Public Law Journal, written by David S. Kupetz of the law firm Sulmeyer Kupetz, which represents Mammoth Lakes.  The article says that a municipality must be insolvent to be eligible for Chapter 9 relief.  A Town would have to be willing to come up with a plan to adjust its debts.  The debtor must negotiate with creditors in good faith, according to Kupetz.

The article says that the success of a Chapter 9 municipal bankruptcy relies on the debtor’s desire to effect a plan to adjust its debts and willingness to work with its creditors to achieve this goal. Kupetz writes that the risks imposed by code in municipal bankruptcy are minimal, but he does say, “The real dangers facing a municipality entering Chapter 9 are potential damage to reputation, bond ratings and public confidence.”

Meanwhile, in Sacramento a bill that would make it more difficult for local governments to file for bankruptcy has been put on hold.  Employee unions have pushed this bill, fearful that local governments can change employment contracts and possibly even pension benefits as part of bankruptcy proceedings.  The bill is currently stalled.

 

, , , , , ,

7 Responses to Town of Mammoth status report

  1. upthecreek July 8, 2011 at 6:01 am #

    “Meanwhile, in Sacramento a bill that would make it more difficult for local governments to file for bankruptcy has been put on hold. Employee unions have pushed this bill, fearful that local governments can change employment contracts and possibly even pension benefits as part of bankruptcy proceedings. The bill is currently stalled”

    The public unions will fight for this bill..They are running scared..
    They need lots of money/New Taxes to feed the Pension Beast.

     
  2. bobbie lee swagger July 8, 2011 at 7:22 am #

    $4,000 a week?

    did i read that right?

     
  3. Jammy July 8, 2011 at 4:25 pm #

    Yep you read it right, The funny part is the keep laying off the worker bees to pay for her. Where do you think MMM will be when its snowing and all the plows are parked because they laid off all the operators? I bet some place warm!!

     
  4. Nancy Tucker Baker July 8, 2011 at 8:03 pm #

    I am not familiar enough with MMM’s recent job performance to say definitively that she is being overpaid at $4000.00 a week. However, I can say that our Town of Mammoth Lakes has a proven history of paying consultants massive amounts of cash for underperformance or even nonperformance of their alleged duties.
    I can only say, if she is as persuasive with the MLLA regarding finances as she has apparently been with our council, she might get us a settlement with MLLA for pennies on the dollar.
    Just sayin’, she seems to be excellent at financial persuasion.

     
  5. HH July 9, 2011 at 8:34 pm #

    Now, if she could only get rid of some other dead weight she might really be worth the money. Myrold, Picken, Manning to start….and while we’re at it, let’s get rid of this council already too. Start by removing the gavel from that rude i know best so suck it up dictatorial Bacon and then work your way down the list.
    i will never feel good about breakfast meats again.

     
  6. Rob July 11, 2011 at 8:35 pm #

    $4,000 a week!

    I’m surprised there isn’t a mob at city hall.

     
  7. John-Carl Vallejo July 12, 2011 at 11:14 pm #

    What was the title of that bankruptcy article? Or better yet, do you have a link?

     

Leave a Reply



KSRW · 1280 N. Main St. Suite J · Bishop, CA 93514 · 760-873-5329
Positive Projections Web Design