STOCKTON, CA — On February 28, 2012, the Stockton City Council approved moving forward with a confidential neutral evaluation process recently adopted through state legislation, AB 506Stockton Selects Mediator.
The process gives municipalities that are in fiscal distress an opportunity for financial restructuring. The financial restructuring involves only a portion of the City’s total budget – the General Fund – which represents approximately $165 million of the City’s $600 million budget.
“The City has not declared bankruptcy,” noted Connie Cochran, Stockton’s Public Information Officer.
The AB 506 process allows municipalities to enter into confidential mediation process with creditors and other “interested parties” with $5 million or more in obligations or debt. While “all aspects of the mediation remain confidential” said Chochran, “The participants in Stockton’s AB 506 process, including the City, have agreed to identify the names of the organizations that will be participating.”
On Wednesday, March 21, 2012, the names of participants were released and the participants agreed to provide the name of the mediator, once selected. Today, a mediator was chosen by the City and the participants.
Ralph R. Mabey, of Salt Lake City, Senior of Counsel to the Los Angeles Law Firm of Stutman, Treister & Glatt, will act as mediator in Stockton’s AB 506 confidential neutral evaluation process. Judge Mabey, who is also a professor of law at the S.J. Quinney College of Law, University of Utah, received his law degree from Columbia University. He served with distinction as a United States Bankruptcy Judge before returning to private practice and teaching.
“The City is pleased with the selection of Judge Mabey and looks forward to proceeding with the mediation process,” said Cochran.
For additional information or questions, please visit http://www.stocktongov.com or call (209) 937-8827.