PR FIRM FUNDING MAYOR'S PARTY ANNUAL GETTY HOUSE GATHERING HELD FOR MEDIA.

Byline: Rick Orlov and Beth Barrett Staff Writers

For the fourth year in a row, a powerful downtown public relations firm that does millions of dollars worth of business with the city will host the annual holiday media party for Mayor James Hahn.

The public relations firm Fleishman-Hillard is paying between $5,000 and $7,000 for next Thursday's party at Getty House, the city-owned official mayoral residence in Hancock Park.

The company has hosted the event - which primarily includes dozens of reporters and editors involved in political coverage for radio, television and newspapers, Hahn's senior staffers and some Fleishman employees - since the last year of former Mayor Richard Riordan's administration, including the three holiday parties under Hahn.

``We know people will try to make something of this, but there is no quid pro quo,'' said Doug Dowie, general manager of Fleishman-Hillard's Los Angeles office. ``We do this because the mayor asks us to and we have done it for a number of years.''

Dowie said the party is one of many events it does for the city at no cost. It also is involved in the ``One Book, One City'' program as well as events to raise money for the Getty House Foundation to cover its upkeep costs.

Fleishman has been a major political backer of the mayor, too, including contributing $15,000 to the mayor's L.A. United campaign against San Fernando Valley secession last year. The company and its employees contributed $34,700 to city political campaigns in 2001.

The firm has gotten millions of dollars in city contracts over the past years, all of which Dowie said were won competitively based on the merits of the company, one of the largest public-relations firms in the world.

``We have a good relationship with the Mayor's Office, and we'd have a good relationship with the Mayor's Office if we didn't have a single contract,'' Dowie said.

The contracts, he added, ``are less than half the business of the (firm's) L.A. office.''

Bob Stern, president of the Center for Governmental Studies, a Los Angeles nonprofit, nonpartisan research organization, said he is concerned about the appearance of Fleishman's involvement in an official mayoral event.

``The question is, if they didn't have contracts with the city, would they be doing this - and the answer is probably no. The concern is it's a business decision by Fleishman. Clearly, they are enhancing their relationship with the mayor.''

Stern also said editors and reporters should have qualms about attending, unless they pay their own way.

``How many of you are there? It's $7,000? You should be ashamed of yourselves, being bought and paid for by Fleishman-Hillard and by Hahn,'' he added.

Hahn has concluded that the sponsorship is appropriate, and that there's no conflict in having Fleishman host the event, Deputy Mayor Julie Wong said.

``As Mayor Riordan did, we thought it would be appropriate to have a private sponsor help defray the cost of the event. There is absolutely no connection between this party and any contracts Fleishman is awarded. Those are all competitively bid.''

Wong pointed out that reporters and editors from the Daily News have attended the event.

Daily News Editor David J. Butler said, ``The newspaper's code of ethics calls for the newspaper to pay for meals but allows staff members to accept a small item, such as a drink, under circumstances where it is virtually impossible or there are no provisions to pay for individual items.''

Butler said he has not attended any of Mayor Hahn's holiday parties.

Wong said, ``It's through the generous contributions of private sponsors that we're able to do a lot of things in the Mayor's Office.''

Fleishman has a Department of Water and Power contract worth $2 million a year to the firm, and another for about $400,000 with the Harbor Department.

Fleishman was among several firms in August 2001 to win contracts to provide ``air service development consulting, marketing, or advertising services'' at Los Angeles International Airport. Fleishman's portion of the work was for up to $500,000.

Dowie said Fleishman did very little work on the contract. Los Angeles World Airports records for last May show a payment of $40,000 to Fleishman, and Dowie said it was for work the company did months earlier.

``We were paid very little. We did some promotion of the Ontario Airport. We have no ongoing work.''

Fleishman staff and the Mayor's Office also earlier this year discussed entering into a one-year contract for up to $120,000 - with the option to renew for an additional two years at the same rate - but the deal never went through, both sides said.

The Daily News obtained a draft copy of the contract, which said Fleishman would provide ``outreach to Los Angeles area businesses, international businesses and media outlets relating to the international business opportunities and events in the City of Los Angeles.''

``It was one of those things, we do a lot of (pro bono) work for the Mayor's Office, and we'd like to do this, and maybe (they'd) find money to pay us,'' said Dowie, who said he never saw the draft contract.

Dowie, a former managing editor of the Daily News, said the firm just hopes everyone has a good time.

Last year, though, after then-Deputy Mayor Matt Middlebrook asked Dowie whether the firm could pay $7,500 for the party, Dowie said he'd rather keep it to $5,000. ``Cripes, it's the media,'' Dowie e-mailed Middlebrook. ``Chips and plain-wrap booze.''

Fleishman recently hired Middlebrook as a senior vice president to head up its San Francisco public affairs office.

Shannon Murphy, a former Fleishman executive, was recently hired to work in Hahn's press office.

``The mayor comes to us because we have a nice relationship with the mayor,'' Dowie said. ``We supported him before he was mayor and we supported him when he ran for mayor. We think he's doing a pretty good job.''

Rick Orlov, [phone]

rick.orlov(at)dailynews.com