Report Is Critical of L.A. Port

The Los Angeles Harbor Department, which administers the nation’s largest port, has no clear vision for its future, and its citizen commissioners have been “too often directly involved” in day-to-day management, according to a draft evaluation of the agency.

The report, commissioned by top city leaders from a private consulting group, found that “the department is now largely reactionary and is perceived as living off the fruits of its prior efforts.”

It also said that “the department’s business processes are not well-documented and lack sufficient support and information to ensure

Port officials declined to comment, saying the report was still in draft form and could change before it is officially released.

The study comes as federal and county prosecutors are investigating contracting at the port, subpoenaing records and calling top officials to testify. It also comes amid a controversy over a $540,000 consulting contract awarded by the port commission to former Executive Director Larry Keller, who resigned last month under pressure.

Some City Council members who expressed outrage over that decision said they would propose today that the council review it. Several officials have suggested the contract was inappropriate, given Keller’s status as a witness in the investigation.

Deputy Mayor Doane Liu, who oversees the port for the mayor’s office, refused to discuss the draft report in detail but said that “the port has issues with the accuracy of some of the statements.”

The survey, which was conducted by Cincinnati-based NorthStar Consulting Group from September 2003 to July 2004 at a cost of $480,000, is a routine evaluation each of the city’s three proprietary departments -- the harbor, the airport and the Department of Water and Power -- undergoes every five years, officials said.

The report found, among other things, that two commissioners interviewed and picked five top managers over the last year, leaving top department staff like Keller out of the hiring process.

“Individual commissioners should not intervene or perform the actual duties of the department,” the report recommended.

The report also said that commissioners told Keller to demote Public Affairs Director Julia Nagano and then announced her replacement. The City Council later agreed to restore Nagano’s executive level salary.

In another area, the survey found that the port’s Community Advisory Committee, a volunteer group created by the mayor, was too involved in daily operations, that it did not adequately represent all stakeholders and that its relationship with port staff was “adversarial.”

Councilwoman Janice Hahn, who represents the port area, took issue with that finding.

“I felt these auditors didn’t really understand the nature of this group,” she said.