CITY HALL DROPPED BALL ON '00 EVE.

Byline: Rick Orlov Staff Writer

Los Angeles' $6 million millennium celebration turned into a fiasco because of poor leadership, bad planning and inadequate fund raising, according to a city audit released Friday.

Inexperience in staging public events and bad weather added to the embarrassing spectacle.

City Controller Rick Tuttle said the New Year's Eve celebration, which paled in comparison with those of other major world cities, was plagued from its start in July 1997 by having four different groups and three different leaders involved in the planning. It finally was taken over by the city's Cultural Affairs Department in June 1999.

``There was confusion throughout the project, including who was in charge, fund raising and sponsorship, limitations on the events, and last-minute additions of new elements to the events,'' the audit said.

And then there was rain during the day on New Year's Eve, dampening enthusiasm and attendance.

``There should have been planning for inclement weather, either rain or heat,'' the report said.

Former Cultural Affairs Director Al Nodal, however, argued there is not much that could have been done about the weather since all the events were outdoors.

More than 87,000 tickets were given to residents to attend one of the five community events held around the city. Officials estimate attendance at 18,700, with the largest number - some 5,000 - attending the Van Nuys Airport festivities.

Plans to have sky divers dropping from airplanes throughout the day were shelved because of the weather.

Also, the most heavily hyped event - a laser light show at the Hollywood sign - failed to come off as projected because of opposition from area residents who feared traffic jams and the possibility of fires. That left officials with only a lighting of the individual letters of the hillside landmark.

Tuttle also was critical of the various groups for failing to provide proper documentation on spending to help in the audit.

Mayor Richard Riordan said he agreed with the findings that there were lessons to be learned from the events, but said he still considered it a success.

``The millennium celebration was successful in several ways and it met the city's objective to offer five family-focused community festival events,'' Riordan said in a statement.

``The city developed important private-public sector partnerships in putting on these events. And the city received valuable positive worldwide exposure.''

Councilwoman Ruth Galanter, who had called for the audit immediately after the events, would not comment until she has had a chance to review it.

Even with all the problems and criticism, the audit said there were positive aspects to the events.

``The City of Los Angeles offered its citizens and visitors a choice of five site events, all at no cost to participants, providing convenience and creating a neighborhood setting,'' the report said. ``The activities available were family-oriented and provided in a safe environment.''

Also, the report said the working partnerships with private groups and other levels of governments were first-of-their-kind efforts for the city.

``Los Angeles has no history of holding a New Year's Eve event,'' it said. ``It takes time for a tradition to be cultivated and for participation to increase. The five community events . . . could be used as the groundwork for continued events. The city may also want to consider having one large event in a central location.''

Tuttle said the Hollywood sign lighting ceremony was designed as a television event rather than one to gather crowds.

``(It) did not demonstrate a willingness or capacity to put on a citywide public gathering intended to gather a large crowd from the entire city in one area,'' the audit said.

``If the city wishes to develop a tradition of celebrating the New Year that would compare with that of Times Square in New York, it may need to re-examine this approach.

``However, it is important to note the Los Angeles celebration would be at a time when much of the world has already retired for the evening.''

In conducting the audit, Tuttle said it proved difficult to get information from the private groups involved, including the Los Angeles 2000 Youth Foundation, which was created as a fund-raising arm.

Former Deputy Police Chief Mark Kroeker was placed in charge of the group and was paid $129,000 for his services. What became unclear, the audit said, was what the foundation was to do in its role and how effective it was in attempting to raise money for the millennium celebrations.

Because of the confusion at the time, many producers said they were initially told not to worry about fund raising. However, in the last five months leading up to the events they were forced to scramble to raise money.

In the end, private sources contributed $2.4 million for the events, with the city - including the Department of Airports, the Harbor Department and the Department of Water and Power - kicking in the remaining $3.7 million.