Though expressing reluctance to do so, the City Council has approved Option A of the Orange County bankruptcy settlement.
Officials said they will continue to evaluate that decision, however, until the judge overseeing the county's bankruptcy petition makes a final ruling.
Under Option A, Los Alamitos would receive about 76% of the $2 million it had in the county's failed investment pool. Part of the remainder would be returned in recovery notes and repayment claims.
By choosing Option A, council members waived their right to sue the county for further damages.
Councilman Ronald Bates said he is concerned that the settlement agreement favors larger investors. "Maybe the settlement was developed on the wrong premises," Bates said.