COUNCIL URGED TO REVIEW AWARD OF KELLER PACT.

Byline: Rick Orlov Staff Writer

The political firestorm over a $540,000 three-year consulting contract awarded to the general manager of the Port of Los Angeles - who recently quit under pressure - heated up Friday with Mayor James Hahn defending his Harbor Commission's actions against intensified criticism.

At the urging of Hahn rival Councilman Antonio Villaraigosa, the full council was urged Friday to take up the issue of the post-resignation contract award to Larry Keller for $180,000 consulting on marketing issues.

Keller, who has been under criticism from area residents, stepped down from his $278,000 a year job in September. The commission last week approved the private contract with him.

Villaraigosa, who is running against Hahn in the mayoral election next March 8, is circulating a proposal to overturn the contract as well as look at all documents, records, correspondence and other materials related to the decision leading up to the awarding of the contract.

``Such contracts with recently departed, high-level former city employees should only be approved after full and complete justification,'' Villaraigosa's motion said.

He cited the ongoing grand jury investigations by the county and federal governments into contract awards by the Harbor Department and suspicions of pay-to-play political manipulation of awards. The inquiries also are into contracts awarded by the departments of Airports and Water and Power.

Hahn defended the contract with Keller, even though it was his own Harbor Commission which moved to replace him.

``He has a lot of expertise,'' Hahn said. ``He helped build Los Angeles into the No. 1 port in the country and we can use his experience to help us.''

However, Villaraigosa and his aides said most council members disagree and want to review the action.

Councilman Tony Cardenas, who chairs the Commerce, Energy and Natural Resources Committee overseeing the harbor, also has said he wants to review the contract.

The controversy over Keller has triggered another in-depth look at the harbor operation, including the amount it spends in administration and for public relations as well as how decisions are made.

The Daily Breeze of Torrance reported on Friday that a management audit draft discovered that two commissioners - Nick Tonsich and James Acevedo, a close ally of Cardenas and Council President Alex Padilla - went over Keller's authority in the hiring of top managers.

``The executive director was directed in writing ... to demote a manager and to hire an external person even though (he) did not have prior knowledge of the action and was not involved in the selection process,'' the newspaper said.

The commissioners did not return telephone calls. But aides to the mayor said they believe the final audit will turn up different information, showing that top port management was involved in the decision-making.

Rick Orlov, [phone]

rick.orlov(at)dailynews.com