$2 MILLION REQUESTED TO REFORM CHARTER; APPOINTED PANEL UNVEILS WORK PLAN.

Byline: Patrick McGreevy Daily News Staff Writer

Seven months after it was set up, a charter reform commission appointed by the City Council finally issued its work plan Thursday - and put a $2 million price tag on drafting a new constitution for the city.

Commission officials said the money is an investment in the city's future if the recommended changes make government more efficient and more responsive.

``I would expect that the returns will be far beyond the budget here,'' said commission Chairman George Kieffer, an attorney with the law firm of Mannatt Phelps and Philips.

He said one test of whether the council really supports reform will be the vote on the proposed budget.

``If they pass the budget that's a sign they are on board,'' Kieffer said.

Critics said the money will be wasted. They warn that no matter what the appointed commission comes up with, the council has retained the right to alter or veto reforms and is not likely to allow any major changes to go on the ballot.

And some foes are wary simply because of the commission's slow progress so far.

City Councilman Nate Holden said he wants the commission to justify its $1.1 million budget request for the new financial year and a projected cost of $600,000 for the following year, which is in addition to $300,000 allocated for this year.

Noting that the council appointed the commission in November, Holden said ``I haven't seen any visible sign of it.''

Studio City attorney David Fleming, who co-sponsored with Mayor Richard Riordan an initiative voters approved last month to create an elected charter reform commission, has his doubts about whether the city will get its money's worth from the appointed commission.

``There is no guarantee that the council won't take the appointed commission's work product and throw it in the wastebasket,'' Fleming said. ``I don't think there is any guarantee that $2 million is going to buy major change.''

Added Matt Epstein, Sherman Oaks Homeowner Association director: ``I think it's a terrible waste of money. You can spend all the money in the world to hire the best consultants to make recommendations, but if they can be vetoed or altered, it's not going to serve the people.''

City Council President John Ferraro said the voters' approval of a charter reform initiative in April shows that people want a serious job done - and he noted that the budget proposal pitches an aggressive public outreach effort.

``The commission's work plan, submitted at the same time as the budget request, states their intention to go beyond a thorough review of the charter,'' Ferraro said. ``If they attain the goals outlined, they will not only have determined our charter needs, but also (will) have stimulated public participation in local government.''

Unlike the council-appointed commission, the elected commission's work will be financed by private contributions raised by Riordan, Fleming said.

Both efforts are aiming for the 1999 ballot.

Kieffer said it has taken some time for the appointed 21-member panel to get organized, but the panel is poised to launch a comprehensive study of the charter if the budget is approved by the council later this month.

``We're going to have to go full bore,'' Kieffer said, but added ``We cannot do a competent job without an adequate budget.''

He said the goal of the commission is to keep the budget under $2 million by leveraging taxpayer funds with private contributions and volunteer workers.

The commission has a paid staff of six, including consultants, and is using about five interns from local colleges on a volunteer basis.

Kieffer downplayed the council's ability to veto charter reforms recommended by his panel.

``There is enough public interest in this and enough momentum,'' he said. ``I have confidence that the proposals we make are going to be very difficult to disregard.''

The budget for next year includes $450,000 for personnel, including a salary for executive director Raphael Sonenshein that Kieffer said will be about $100,000.

The budget also includes $300,000 for consultants, including retired city administrator George Wolfberg and former Fire Commissioner Hal Kwalwasser, and $350,000 for office and operating expenses.

The commission also plans to do a public opinion survey and to create a ``chat room'' on the Internet to help gauge citizens' attitudes.

Kieffer said the panel will mount an extensive community outreach program that will include public hearings.

The first hearing is scheduled for later this month in the San Fernando Valley, where threats of secession sparked the drive for charter reform, according to Sonenshein.

The commission said Thursday that with its work plan it could have a package of charter changes ready for council consideration as early as May 1998. The reforms could be put on the ballot as early as November 1998 or as late as June 1999.

The work plan calls for the commission to divide into three study groups, one to look at the proper roles and power for key city institutions, including the council, the mayor and city commissions.

Another study group will look at how the charter can improve the management of the city, including efficiencies in government operations.

The third group will look at ways to improve public participation in government, including expanding the City Council, and proposals to create elected or appointed neighborhood advisory councils throughout the city and how much power the councils should have.

``We are going to look at the charter's strengths and weaknesses, at what works and doesn't work,'' Kieffer said.

Councilwoman Ruth Galanter said she supports the commission, even though she is not convinced major changes are needed in the City Charter.

``I don't believe you need wholesale change in the charter, but now thanks to the mayor, the public thinks charter reform offers solutions to a whole range of urban problems,'' Galanter said, adding the council ``owes it to the public'' to support the process.