LOS ANGELES : Olvera Street Mismanaged, Audit by Controller Says

City Controller Rick Tuttle urged Mayor Richard Riordan on Thursday to appoint a commission to oversee the management of Olvera Street.

The historic tourist spot lies in the heart of the El Pueblo Plaza, the city’s birthplace. Shops and restaurants give the square the ambience of a Mexican marketplace.

In an audit released Thursday, Tuttle’s office identified what he called weaknesses in the plaza’s management practices, including Cinco de Mayo celebrations that lost money in 1992 and netted only $360 in 1993.

“El Pueblo currently lacks the direction and controls to operate effectively and attain its objectives,” Tuttle wrote. “We believe this is the result of not having a commission to direct and ensure management controls.”

The City Council created a seven-member oversight panel in 1992, but neither Mayor Tom Bradley, who retired last year, nor Riordan made any appointments.

Deputy Mayor Robin Kramer said Administration officials will announce the appointments in a few weeks.

The audit concluded that leases for El Pueblo merchants had remained static since 1987. Furthermore, auditors found no uniform basis for setting rents.

Auditors also reported that El Pueblo did not conduct competitive bidding for contracts, and the park director awarded consulting and construction contracts without the approval of the Recreation and Parks Commission.

The Recreation and Parks Department took over management of El Pueblo from state parks officials in 1990. The plaza’s revenues are raised from parking, leases, special events, filming projects and souvenir sales.