Supervisors, Popejoy Can Agree: He’ll Stay : Recovery: Bosses say they want to keep him on job for now and he says he’ll be more accountable to them. Board will step up efforts to recruit a permanent replacement.

SANTA ANA —  Orange County supervisors on Thursday found a face-saving solution to their public dispute with the county’s strong-willed top executive by making him more accountable to the board while affirming their desire to keep him at the helm of the bankruptcy recovery effort.

The Board of Supervisors, however, did not enthusiastically endorse CEO William J. Popejoy’s handling of the financial crisis, nor did it force his ouster as one supervisor has demanded.

“We came together for the sake of this county,” Supervisor William G. Steiner said of the rift that had developed between the board and Popejoy. “We went beyond personality differences and old news.”

Popejoy, a retired millionaire who has agreed to work for free, has had a stormy relationship with his five bosses. Since taking the position in February, he has been at odds with all of the board members at one time or another.

Tensions between Popejoy and the board escalated this week after voters soundly rejected the proposed sales tax hike--a key component of Popejoy’s recovery plan.

Some anti-tax activists pressured supervisors to dump Popejoy, while Gov. Pete Wilson lobbied them to continue supporting their top executive.

Meanwhile, Supervisor Jim Silva, who has wanted to fire Popejoy, asked his colleagues to dramatically reduce the CEO’s authority. Popejoy, who can be fired only if four of the five board members vote to oust him, said he would step down if his authority was curtailed or there was a public cry for him to resign.

The controversy surrounding Popejoy prompted the board to hold a closed session meeting Thursday to discuss his job performance.

After more than two hours of closed-door discussions, Board Chairman Gaddi H. Vasquez said he and his colleagues had “clarified” Popejoy’s role as CEO.

Vasquez said the board is requiring that Popejoy hold at least one closed briefing session with the supervisors each week, get board approval of “all policy and strategy in advance” and defer to the board chairman as the county spokesman.

The board will also step up its recruitment of a permanent CEO they intend to hire by “midsummer,” Vasquez said.

Popejoy declined to comment on the board’s action.

Vasquez said Popejoy agreed with the board’s requests.

“This is not about a reprimand. This is about doing a basic performance appraisal, which is very standard and very normal in these types of circumstances,” Vasquez said.

“We clearly sent a message that the board stands in support of Mr. Popejoy continuing his role as chief executive officer and as a leader of the management team that will continue to work on the fiscal recovery of this county.”

Vasquez added that he thought Popejoy has “operated very well under some very adverse circumstances. Obviously with any job that one has in life there are always areas for improvements.”

“We are the elected officials of this county, and we are the policy-makers,” Vasquez said. “I don’t think any of us like surprises. None of us like to read about things in the newspaper that are pertinent and relevant to our job role as policy-makers.”

The board’s action seemed to allow supervisors to reassert themselves in the decision-making process, let Popejoy retain his authority and placate jittery Wall Street investors who would have interpreted a Popejoy ouster as another sign of instability in the county. It also was a boost to Popejoy, whose position had been weakened by his very public differences with the board.

Steiner, who characterized Thursday’s session as a “healing,” said he hopes the turmoil between the board and Popejoy will quickly be forgotten.

Whether that will happen, however, remains in doubt.

Popejoy has made some enemies on the board.

Supervisors seemed surprised when Popejoy took full advantage of the powers they granted him. The CEO has not been shy about making key policy decisions without board input. He has frequently kept supervisors in the dark about crucial recovery efforts, which was displayed most dramatically last month when he flew to New York to secretly meet with Merrill Lynch Chairman Daniel Tully about settling the county’s $2.4-billion lawsuit against the firm.

Furthermore, Popejoy has shown little hesitancy in criticizing board members.

Over the course of his employment, Popejoy has suggested that the three supervisors who were on the board when the Dec. 6 bankruptcy was declared resign; attacked Supervisor Jim Silva for displaying a lack of leadership; and, asked the Orange County Grand Jury to investigate the ouster of Supervisor Roger R. Stanton for alleged misconduct.

Supervisors on Thursday tried to minimize the friction between them and Popejoy.

Supervisor Marian Bergeson, who has been Popejoy’s most ardent supporter on the board, said she thought the controversy with Popejoy was really about communication, not power.

“Whatever problems have existed between individual board members, that’s to be put to rest,” she said. “We must concentrate now on the recovery process and the future of the county.”

Stanton refused to comment about the two-hour discussion or what would happen next in the board’s contentious relationship with its top administrator.

“I support Chairman Vasquez’s statement, word for word,” Stanton said as he hurried out of the Hall of Administration. “That’s all I’m going to say.

Aides to Silva said he would have no comment on the matter.

Times staff writer Jodi Wilgoren contributed to this report.

* NO 100% SOLUTION: Full repayment to schools, cities is called all but impossible. A16