CHARTER BID ENCOUNTERS ROADBLOCKS; NEIGHBORHOOD COUNCILS MAIN BONE OF CONTENTION FOR FACTIONS.

Byline: Rick Orlov Daily News Staff Writer

A drive is under way to try to unify Los Angeles' diverse business community behind a single charter reform proposal dealing with neighborhood councils, but is running into difficulty even before a final plan is drafted, officials said Friday.

Former City Attorney Burt Pines, who is working with the Greater Los Angeles Area Chamber of Commerce, has been working on a proposal that would create a series of appointed neighborhood councils with advisory powers and would receive some money from development within their area.

``This is very, very preliminary,'' Pines said. ``Right now we're in the discussion stage, and this will change in the process. But at some point we have to have a compromise on neighborhood councils if we want to see charter reform go through.''

Two charter reform panels - one appointed by the City Council, the other elected by voters - are developing recommendations to change how the city is governed.

The role of neighborhood councils has been one of the major issues on how to make government more responsive while not resulting in gridlock in operating the city.

Pines has warned that unless some compromise is reached, it threatens whatever plan is put before voters. But both the Valley Industry and Commerce Association and the Los Angeles Business Advisors indicated they oppose Pines' proposal.

David Fleming, who was one of the co-chairs with Mayor Richard Riordan to create the elected Charter Reform Commission, said the neighborhood council approach does not go far enough. Fleming has proposed creating a borough system type of local government with locally elected officials and separate budgets.

``In the final analysis, the city has to come to the realization that there has to be meaningful charter reform and they can keep the Valley as part of Los Angeles,'' Fleming said. ``If not, they will have to give up the Valley. The Valley is not going to vote for a papier-mache charter.''

Sam Bell of the Los Angeles Business Advisors said his group has not changed its position that neighborhood councils should not even be in the charter.

``A one-size-fits-all approach is not going to work,'' Bell said. ``Different areas have different needs. Some areas will not have any development and then they will have nothing.

``To put something so detailed as neighborhood councils in the charter is creating the same problems we have with this charter. We need more flexibility, not less.''

At the same time, Bell said he did want to see the business community try to come together behind a single plan.

``That, obviously, would be the best way to develop public support for a new way to govern the city,'' he said.