Spending by Movie Companies Sets Record : Entertainment: Industry puts $4 billion a year in local economy, audit finds. Officials seek way to ease relations among city, firms and neighborhoods.

Despite the film industry’s concerns that Los Angeles is losing entertainment jobs to other cities, an audit released Tuesday said that movie production spending in the city is at an all-time high of nearly $4 billion a year and that the industry is thriving.

However, the city administrative office audit also recommended reactivating a long-dormant film operations committee to devise a policy that would make Los Angeles a less difficult place for movie crews to work.

As it stands, relations are strained among film companies, the city and the neighborhoods used for location shooting. Industry officials complain of being overwhelmed by the vast city bureaucracy and “over-regulated” by agencies, including the Los Angeles Fire Department.

Residents have cried out for relief from production company traffic and noise.

The audit recommended that the city’s 50-member film operations committee, which has met only twice since it was formed under the Board of Public Works in 1987, be placed under control of the mayor’s office to increase its influence. It also suggested expanding the committee to include film industry and homeowner group representatives.

City Councilman Michael Woo, who called for the audit “because the city was not doing enough to help the industry,” said he was disappointed by its recommendations.

“I think the recommendations leave the authority over filmmaking activities too fragmented between the mayor’s office, the City Council, the Board of Public Works,” Woo said. “I would have preferred to have seen a more centralized authority.”

“I plan to take the lead in reviewing these recommendations,” he added, “and may suggest some alternatives.”

The audit found that the value of film, television and commercial production in Los Angeles--including shooting on location--was nearly $4 billion last year.

Between 1985 and 1990, the number of permits issued for feature films rose from 500 to 1,200, or 140%, according to the audit. Griffith Park and Hollywood Boulevard from Vine Street to La Brea Avenue were the most filmed locations.

During the same period, complaints from the public increased from three or four a week to two or three a day.

Meanwhile, cumbersome regulations have been driving hometown film companies to communities in Louisiana, Arkansas and Wyoming, which lure the industry with tax rebates, free permits and low-cost locations.

Gini Barrett, spokeswoman for the Alliance of Motion Picture and Television Producers, said she had not seen the audit and had no comment on it.