CITYHOOD STUDY PLAN SETS TOUGH SCHEDULE.

Byline: Michael Coit Staff Writer

The consultant who gets the San Fernando Valley cityhood study job will be challenged to finish it on time and within budget, said experts at a meeting Monday.

Consultants said the Local Agency Formation Commission must carry out its pledge to get Los Angeles to cooperate both in the unprecedented study and in any financial agreement with Valley representatives on terms of the pending municipal divorce.

``The two parties before this is all over will have to come to terms. The sooner the better,'' said Walter Kieser, a representative for Economic & Planning Systems of Berkeley. ``Two years is an aggressive schedule, but it can be done.''

More than 20 consulting firms, including four of the big five accounting firms and Rand, sent representatives to the meeting, which was held to explain the work to prospective bidders.

A major concern was giving LAFCO a fixed price within the agency's $2.65 million budget despite an undefined project scope. Consultants said challenges by the city and Valley representatives could increase costs.

``You've never been through this. We've never been through this. None of us know how deep the puddle is,'' said William Vorhies, with the Price Waterhouse Coopers office in Woodland Hills.

LAFCO officials attempted to reassure the consultants that the work is reasonable and can be done in 18 to 24 months if there aren't any legal challenges or other delays.

``This is not that complicated a process,'' said Larry Calemine, the LAFCO executive officer. ``Admittedly, it's open ended at this stage of the game. But that's the way it is. Now it's up to you to be creative.''

The study, known as a Comprehensive Fiscal Analysis, ultimately must find that the proposed city will have revenue to provide public services and facilities and a reasonable reserve during the three fiscal years following incorporation. The proposal must result in revenue neutrality between the Valley city and Los Angeles, unless there is an agreement for adequate tax sharing and payments.

Battles are expected over the study's contents and what the information means for the viability of secession.

Kieser said the split could leave the remainder of Los Angeles financially weaker and require an agreement that somehow doesn't impact the Valley city's fiscal prospects. His firm has conducted many studies that led to successful incorporations of cities, including Rancho Santa Margarita just last week.

``That will be the real game, what the two parties agree to during open-ended negotiating,'' he said. ``It's very likely that will decide the process.''

A LAFCO subcommittee and staff will review the consultants' bids and rank them before interviewing finalists. Bids are due by Dec. 20 and the selection is expected by Feb. 23.