VALLEY BUSINESS, UNIONS ALIGN TOGETHER FOR REFORM.

Byline: Patrick McGreevy Daily News Staff Writer

Unusual alliances are being struck and battle lines are being drawn as major campaigns start taking shape for the hearts and minds of Angelenos when City Charter reform proposals are placed on the ballot next year.

Already, some city officials marvel that labor unions have joined forces with homeowner associations and San Fernando Valley business leaders to fight for creation of strong, elected neighborhood councils throughout the city.

Such an alliance, as unusual as it may seem, is likely to be a strong contender against a coalition of downtown-based business leaders who have vowed to put significant money and their clout into a campaign to defeat elected neighborhood councils.

``The business coalition is concerned that the combination of labor unions and homeowner groups in a high-turnout election would be able to overcome the enormous amount of money they have,'' said Jorge Mancillas, area political director for the Service Employees International Union.

The union, which represents 180,000 workers in the Los Angeles area, proved its power at the polls last year when labor-backed candidates defeated candidates backed by big business for seats on the elected Charter Reform Commission.

``In recent years, the unions have clearly demonstrated they are far more together than business,'' said political consultant Richard Lichtenstein, also referring to the union victory in council passage of a wage ordinance for city contractors over objections from the city's business community.

But Valley business leaders are on the same side as the labor activists, pitted against the downtown business group, in the campaign to create strong, elected neighborhood councils.

That was clear when union leaders Mancillas and Julie Butcher sat down last week with leaders of the Valley Industry and Commerce Association, leaders of homeowner associations and Studio City attorney David Fleming to organize a group they call The Coalition - with a capital T.

Fleming and labor leaders previously have clashed on charter reform, but agree that the city needs powerful neighborhood councils.

``Simply expanding the City Council is not enough to reconnect people with city government,'' Fleming said.

But the high stakes of charter reform have also roused the sleeping giant of big business in Los Angeles, Lichtenstein said.

``What big business has is a significant financial interest that may cause them to rally in ways they haven't done before,'' Lichtenstein said.

The Los Angeles Area Chamber of Commerce, the Central City Association and the Los Angeles Business Advisors are among nearly a dozen downtown-based business groups that have formed a rival coalition, the Coalition for Charter Reform, seeking more members on the City Council as an alternative to elected neighborhood councils.

Powerful community councils would create another layer of bureaucracy that would stymie the economic development of Los Angeles, the business coalition fears. Instead, members want 20 seats added to the 15-seat City Council.

Sam Bell, the president of the Los Angeles Business Advisors, said polls show projected costs to taxpayers will be a key factor in whether voters favor expanding the City Council or creating elected neighborhood councils.

City Councilwoman Ruth Galanter said most Los Angeles voters are not stirred up about charter reform, so it will take a lively campaign to interest them in the first place, not just win them to one side or the other.

``A lot will depend on what's in (each) charter reform (proposal) and who runs the more effective campaign,'' Galanter said.

Lichtenstein said the two sides might be so evenly matched that they could fight to a draw.

Also complicating matters is the fact that voters may face a large menu of choices.

Just on the question of expanding the City Council, members of the appointed Charter Reform Commission have proposed an increase from 15 to 21 members, while some elected charter commissioners want to give voters a choice between 15 and 25 members.

Lichtenstein also said each side might put on such a strong campaign that voters get confused and reject all charter reform in frustration.

``It is a hornets' nest, and the net result is that the important public policy debate gets lost in the politics,'' he warned about the danger of a deadlock, ``so the city is going to continue to be left with a very old, not-functioning charter.''

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