San Bernardino’s City Council Tuesday night voted to seek bankruptcy protection, according to Bloomberg. This makes the third California city, after Stockton and Mammoth Lakes.
The Bloomberg story says it is unclear how San Bernardino will handle AB506 mediation, if at all. This required per-bankruptcy step caused Stockton problems because as the city let mediation play out for 90 days, Wells Fargo foreclosed on three parking garages and the new City Hall building. There is a provision in AB506 that says a city can skip AB506 mediation with the declaration of a fiscal emergency. The AP’s story doesn’t mention it either.