Port Officials Dispute Chick on Settlement Cost

Two top Port of Los Angeles officials are taking exception to City Controller Laura Chick’s statements that they may have underestimated by $59 million the costs of a court settlement that allowed the completion of a new cargo terminal.

In a letter to Chick, Harbor Commission President Nicholas G. Tonsich refutes her estimates that the settlement with environmental groups may cost the port and the city more than $120 million, rather than an earlier figure of $61 million.

Both Tonsich and Port Executive Director Larry A. Keller questioned where Chick received the higher cost estimate, and they defended the port’s accounting of settlement costs. In fact, the real costs may be less than $50 million, Tonsich said.

Chick has said that the figures came from the firm that recently conducted an audit. She said in an interview Thursday that she is pleased the port is providing some cost figures.

“The issue is about openness and transparency,” she said.

The settlement in question stemmed from a case brought by environmental and civic groups, claiming port officials failed to conduct a required environmental review of the $47-million China Shipping terminal. In settling that suit, the port said it would spend $60 million for measures to reduce diesel pollution and improve parks and other areas in San Pedro and Wilmington.

The exchange comes as the controller awaits the port’s formal response to an independent audit that sharply criticized the port’s leasing practices. The 70-page audit, released last month, concluded that senior staff members at the port rely on instinct more than thorough financial review when making major decisions.

Chick has asked Keller to advise the controller’s office by Wednesday on actions the port has taken to implement the auditor’s recommendations.