One of the many issues Richard Riordan will face as mayor starting today is how Los Angeles will deal with the flight of film productions from the city and other problems related to the entertainment industry.

Sources within the film community say independent movie producer Dawn Steel, a member of Riordan's transition team, will be charged with revamping the mayor's office for entertainment industry affairs and with finding a replacement for its former head, Beth Kennedy, who was dismissed Tuesday along with dozens of others in the Administration of outgoing Mayor Tom Bradley.

A spokesman for Riordan said the new Administration will "bring in someone with a fresh perspective" to head the city's film industry liaison office.

The dismissal of Kennedy and her assistant, Dana Mayer, who have been on the job since the positions were created in August, sent mixed signals to the film industry about the city's commitment to encouraging local production.

The office was established to resolve friction between the industry and the city on such thorny issues as location shooting and Fire Department permits, as well as to encourage movie makers to stay in Los Angeles rather than go to other areas that lure productions with cost incentives.

Bradley spokeswoman Vallee Bunting said the dismissal of Kennedy "was not a personal decision. It was the choice of the incoming Administration to dismiss the entire staff of Bradley's office, except for a few clerical positions that are staying on a temporary assignment." She said the number of people dismissed is in the dozens.

Riordan's communication director, Dan Blackburn, said Wednesday: "The mayor-elect has emphasized repeatedly that the film industry is very important to the city of Los Angeles. He will be looking for someone to fill that post who is not only knowledgeable about the needs of the film industry, but who can work closely with that industry and with the Department of Public Works."

"It makes no sense for the new mayor not to open his arms to the film community. It's a major source of jobs and revenue," said a source close to the new mayor. Some said there was unhappiness with Kennedy's inability to halt the "film flight" that has plagued Los Angeles for a decade.