AUDIT: PORT NEEDS MASTER PLAN FACILITY FOUNDERING WITHOUT MISSION, CHICK SAYS.

Byline: Rick Orlov Staff Writer

Management of the Port of Los Angeles came in for harsh criticism Friday with the release of an audit calling for more strategic planning and limits on commissioners' activities.

The management audit recommends development of a formal master plan and strategic plan for future operations, clear management guidelines and clear priorities for community advisory councils. It also calls for limiting the role of the Harbor Commission in the day-to-day management of the department.

``The report paints a picture of a port adrift, suffering from a lack of vision, planning and strong management,'' Controller Laura Chick said as she issued the audit performed by her office along with Mayor James Hahn and the City Council.

``Now, it is easier to understand many of the issues plaguing the port today.''

The audit was conducted by Northstar Consulting Group for the city.

The harbor has undergone intense scrutiny in recent months with an earlier critical audit of its operations, the resignation of its director - Larry Keller - and his rehiring as a consultant to a three-year, $540,000 contract.

The City Council voted to overturn the contract to tighten up its requirements, but questions have continued to plague the harbor - the nation's busiest - and its operations.

The report is the final draft of one first discussed in October, when commissioners were criticized for exerting too much influence in hiring decisions.

Chick said the audit, required under the City Charter and the first formal management review since 1995, found that the department had lost its edge in dealing with issues.

``Whereas previously the department was considered visionary, (it) is now largely reactionary and is perceived as living off the fruits of its prior efforts,'' the audit said.

``This has a potentially profound effect on the department's ability to address future challenges and on its relationship with its tenants and the community.''

The audit recommended that the Harbor Department:

--Develop a strategic plan on the mission of the port.

--Limit the role of commissioners in day-to-day management.

--Develop clear management performance reviews.

--Provide better documentation of business practices.

--Develop clear guidelines on the role of the Port Community Advisory Committee.

--Involve more of the port's divisions in developing policies and procedures.

Hahn supports the major recommendations in the report and wants to ensure that community input remains a key factor, Deputy Mayor Doane Liu said.

``Part of the problem is that under the (Riordan) administration, the port was on a `growth at all costs' agenda,'' Liu said. ``Mayor Hahn has tried to put in a smart-growth policy that deals with environmental issues.''

Harbor Department officials said they also agreed with most of the audit.

With Keller's departure, officials said the port can go in a new direction.

``This report is a good snapshot of the port in late 2003 and the first half of 2004 and it provides insights and recommendations, many of which are under way,'' Commission President Nick Tonsich said.

Interim Executive Director Bruce Seaton said the department was at work on strategic plans to address environmental issues and dealing with cargo.

Rick Orlov, [phone]

rick.orlov(at)dailynews.com