MAYOR TO OFFER UPBEAT ASSESSMENT OF VALLEY.

Byline: Patrick McGreevy Daily News Staff Writer

Mayor Richard Riordan will have a cautionary message for San Fernando Valley residents when he makes his fourth annual State of the Valley address today: The Valley's economy is humming along, but education reform and charter reform are necessary to keep the area strong.

Riordan will deliver the address at a lunch sponsored by the Valley Industry and Commerce Association at the Warner Center Marriott in Woodland Hills.

``The state of the Valley is vibrant,'' Riordan said in a written statement from his office about points he would make in the speech.

``In order to maintain that vibrancy, we need to ensure a well-educated work force available to Valley businesses in the 21st century and a reformed City Charter that will serve Valley residents in the 21st century.''

That message is likely to find a receptive audience among the business leaders who will attend the conference, but many Valley business and community leaders are skeptical about whether meaningful reform will come from efforts already under way.

``People agree with the mayor that there is a need for change,'' said VICA director Robert Scott, also a city Planning Commission member. ``The question is do people think what is being proposed as charter reform is real change.''

A coalition of Valley leaders proposed that the city's two separate charter reform commissions create a system of elected neighborhood councils with decision-making power over local land use and budget issues, but both panels have rejected that idea. Both have recommended only appointed neighborhood councils, limited to advisory roles.

``Those tracking charter reform are quite discouraged by that process,'' Scott said.

Riordan will be delivering his speech just a few weeks before Valley Voters Organized Toward Empowerment is expected to turn in more than 200,000 signatures on petitions demanding a study of potential Valley secession and cityhood.

In editorials, the Daily News has strongly endorsed Valley VOTE's drive for a public study that would determine whether a breakup would be revenue-neutral to the remaining part of the city and whether the new city would be economically viable. The newspaper has contributed $60,000 to the petition-gathering effort.

The relationship between the Valley and City Hall is definitely strained, said Richard Close, chairman of Valley VOTE, the group petitioning for the cityhood study.

That perception wasn't helped when the Metropolitan Transportation Authority board rejected a request this week for $106 million in Valley mass transit projects, but approved $220 million for the Eastside and Mid-City areas, Scott said.

Even Riordan, an MTA board member and opponent of secession, was angered by the move, saying, ``No wonder they talk about seceding.''