KATZ TO SEEK ELECTION RECOUNT.

Byline: Rick Orlov Daily News Staff Writer

In what could be his last chance to change the results of the June 2 election, former Assemblyman Richard Katz said he plans today to file a request for a recount as well as a lawsuit challenging the outcome of the 20th Senate District race he lost to Los Angeles City Councilman Richard Alarcon.

``It was a very close election - 29 votes - and mistakes can be made,'' Katz said in an interview Sunday. ``We had one day where we found seven ballots had been counted twice.

``We want to audit the process and make sure it was done the right way and leave no stone unturned. The recount provisions were put into law for a reason and they do turn around the results in elections. We intend to exercise our legal rights.''

Alarcon said he was not surprised that Katz was seeking a recount.

``We expected this all along, but we believe it won't change anything,'' Alarcon said.

``As for the lawsuit, it's an extreme approach, but I don't believe there ever have been any similar suits that had success.''

Katz's aides pored over the returns last week, raising questions over 51 provisional ballots that were not counted.

It was because he cannot look at the provisional ballots unless he files a legal action, Katz said, that he also decided to file a lawsuit.

Katz described the lawsuit, which names Alarcon, as technical because of the provisional ballot aspect. But he said it also asks the Superior Court to throw out the results of the election based on mailings sent in the final days that were paid for by state Sen. Richard Polanco, D-Los Angeles, as a contribution through his Latino Political Action Committee.

The suit will ask the court to overturn the election results and name Katz as the nominee.

The suit also will allege that Alarcon or his campaign workers ``committed offenses against the elective franchise . . . (by) authorizing or arranging for the mailing of a direct mail piece that contained false and misleading statements.''

The lawsuit will go on to claim that the actions resulted in Alarcon being able to win the Democratic nomination over Katz.

The mailing has been the source of controversy from the moment it was received in homes in the final days leading up to the election in its tying Katz to Republican efforts to keep Latinos from voting in a 1988 Orange County election.

In fact, Katz was part of the Democratic leadership that investigated the use of so-called poll watchers who intimidated Latino voters and won a major settlement that went into Latino voter registration programs.

The mailing was paid for by Polanco and prepared by Alarcon's campaign consultant, Richie Ross.

Alarcon said he did not learn of Ross' involvement until after the election and final campaign reports were filed.Alarcon has since apologized for the mailing, even as he criticized Katz's own mailings against him. Katz has rejected the apology as being insincere.

The controversy over the election has spilled into Sacramento, with Senate President Pro Tem John Burton, D-San Francisco, withdrawing an offer to both candidates to pay for the recount.

Burton was particularly critical of Katz's refusal to drop his criticism of Polanco and Alarcon with his calling the mailing an effort at race-baiting as well as Katz's refusal to agree to endorse Alarcon if he does turn out to be the victor.

The election also has resulted in efforts by leaders in the Latino and Jewish communities to begin a dialogue to try to limit any impairments to relations between the two groups.