...if Dick Riordan is starting to lose it?

I think Dick is off his meds.

My father and he were both contemporaries here in LA and were and are friends, and yes, your question has merit. It has been known for some time, that Mr. Riordan is not the same Riordan who was once mayor, he is aging and has lost some of his edge over the last couple of years.
Since I've met the man personally, and have been at the same functions that allowed for some extended discourse I find it very sad that the comments that he made to the little girl will likely be the petard that the press has been seeking for a very long time to hang him with.
He's a wonderful guy that had no need to get into public office(s) but did so as a pure effort to give back to a community that he loved so much.
Most people in the media that have known him for years know by now that he doesn't have a mean bone in his body, but, alas, that won't stop them from using this slip by an old man to pillory him, and if possible tar Ahnold in a guilt by association manner.
JMO, your mileage may vary...

I don't know much about him, so there may be more to it - but I have been annoyed by HOW MUCH press this has gotten. It has been on TV, radio, and is on the front page of the newspaper. Here's more information on it:

http://www.sacbee.com/content/politics/ca/story/9933366p-10855351c.html

Apparently, the NAACP and others had assumed the girl was black, and were arguing racism, but it turns out she is a blue-eyed blonde.

He screwed up, but he also immediately apologized. If Clinton didn't need to resign for everything he did, why should this fellow?