A majority of the recommendations cited in a City of Los Angeles-commissioned report published today -- "Industrial, Economic and Administrative Survey of the Harbor Department" (IEAS) -- will be embraced by the Harbor Department as measures to strengthen organizational procedures and reinforce strategic planning measures already underway at the nation's busiest container port.

The report was commissioned, in accordance with the City Charter, by an oversight committee comprised of representatives from the Office of the Mayor, the City Council, and the Los Angeles City Controller. Management consulting firm Booz-Allen Hamilton conducted the last Harbor Department management and operations analysis in 1995.

Conducted by independent management consulting firms NorthStar Consulting Group and blueCONSULTING, Inc., the overall objective of the Industrial Economic and Administrative Survey was "to identify opportunities for long-lasting and meaningful change in (Harbor) Department management, operations, and culture in order to accomplish the strategic goals of the Department."

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"The Port of Los Angeles is the nation's busiest port, has the nation's highest bond rating among ports, and has environmental technology found nowhere else in the world," said Mayor Jim Hahn. "The recommendations provided by these management consultants will help us build on this strong foundation and create an even better port."

"For the most part, this report is a good snapshot of the Port in late 2003 through the first half of 2004, and it provides relevant insights and recommendations for organizational and procedural improvements -- many of which are already well underway," said Harbor Commission President Nick Tonsich.

Bruce Seaton, interim executive director at the Port of Los Angeles, added, "This is the time to address changes in our organization that will help us remain the leading port in North America even while we come to terms with environmental concerns and regional cargo movement issues. Those concerns, combined with internal housekeeping measures, will fold into our development of a strategic plan in the coming months that will help chart the Port's course for the next five to 10 years."

Report recommendations and actions include the following:

Port Security

A number of security-related recommendations in the report underscored the importance of efforts already underway, including continued vigilance in communicating the Port's need for Federal and state security funding and program support. Specific programs referenced in the report emphasized the importance of Port involvement in the Transportation Worker Identification Credential (TWIC) pilot program, Container and Supply Chain Security Initiatives, and general Port Police interaction with Facility and Vessel Security Measures.

The Port also will pursue stronger measures that will strengthen security coordination between the Port and its tenants. Among them, a new tariff provision that requires tenants to provide approved security plans to the Port. Tenant security plans, coupled with more extensive information about existing physical security conditions at tenant facilities, will optimize Port Police efforts in their likely role as first responders to emergencies at tenant facilities.

"In addition to security-related efforts that we will pursue with our Port tenants, the IEAS report's security related recommendations underscore the importance of the Port to continue to work with our on-site Coast Guard and U.S. Customs counterparts -- as well as our neighboring port -- as part of an ongoing coordinated effort to keep this port complex as safe and secure as possible," said Seaton. "As part of our continued efforts to keep security at the forefront of government funding and legislation, we also will pursue efforts to optimize City leadership awareness and support for the Area Maritime Security Committee (AMSC), another channel through which we can work with municipal agencies throughout the area to ensure the best coordinated planning and response efforts to a major Port incident."

Environmental Stewardship

As part of the Port's ongoing efforts to strengthen its environmental initiatives, the IEAS report recommended the creation and inclusion of performance measures that help quantify environment-related Port initiatives. This concept is already being pursued in a number of ways, including the Port's facilitation of a No Net Increase/Air Quality Task Force presently in place and pursuing a plan for achieving Mayor Hahn's goal of "no net" increase in Port emissions past 2001 levels. In addition, an Environmental Mitigation Scorecard program was just approved this week by the Harbor Commission and will now be developed by the Port's Environmental Management Division staff in conjunction with the Port Community Advisory Committee. The Environmental Mitigation Scorecard will be utilized to measure ongoing Port performance along a number of environmental fronts.

A far-reaching Environmental Policy approved by the Board in August will serve as the cornerstone for monitoring environmental progress. The Port will soon be embarking on a key recommendation of the study to develop an environmental administrative framework that allows for coordinated implementation of "green" programs which, combined with the environmental policy, will ensure continued and measurable environmental improvement in all aspects of Port operations.

Executive Management & Decision Making

The report cited the Port's need for a new strategic plan, the last one completed in the mid-1990s. The Port's strategic planning process is well underway with the consultant selection process wrapping up and the completion of a new Strategic Plan expected by mid-2005. The Port also will institute a comprehensive management performance evaluation program that more closely ties managerial performance goals to Strategic Plan goals and objectives.

The Port also will undergo a thorough review, assessment and update of Departmental policies and procedures, clearly outlining policy and operations for the Port. Policies and formal business procedures also will be updated for the Board to address all of the responsibilities of the Board and Department senior management in relation to matters that must receive Board approval.

In terms of community relations, the report recommended that the Port continue to establish credibility with community stakeholders, building trust through responsive and relevant interactions with the community. This was noted as an ongoing process to further the report's observation that the Port has made "unprecedented efforts to work with the community."

Objections to Port Community Advisory Committee Report Assessments

The report's specific recommendations related to the Port Community Advisory Committee (PCAC) included revisiting the original mission of the PCAC, established nearly three years ago under the direction of Mayor Jim Hahn, and assessing areas where the PCAC can be enhanced to strengthen the relationship between the Port and the PCAC.

Councilwoman Janice Hahn and Harbor Commissioner Camilla Townsend voiced their concerns over the report's review of the Port-PCAC relationship:

"The PCAC was established by the Mayor to ensure that the community's voice was included in decisions made at the Port of Los Angeles -- decisions that have historically affected the Harbor Area negatively. Finally, the Port is listening," said Councilwoman Janice Hahn. "No longer does the Port base its decisions on the economic bottom line. Thanks to the PCAC, the Port's priorities have changed and the authors of the audit clearly missed the significance of the PCAC and the history of the Harbor Area."

"While the PCAC has proven to be extremely valuable, the report suggested that the group has overstepped its role, and I don't agree with that," said Townsend, who co-chairs the Port Community Advisory Committee. "One specific note of clarity -- the Board of Harbor Commissioners chose to establish the PCAC as standing committee to provide input on Port matters impacting the community; improve communications between the community and the Port; and preserve and enhance the quality of life in communities surrounding the Port.

"I won't say that there isn't a margin for improvement; but the relevant areas of criticism the report cites are not extraordinary in the context of how such a diverse organizational process evolves. In the past year, we have seen the PCAC evolve very effectively as an organization. The bylaws are in the process of being refined, and the committee has proactively added new business stakeholders in order to balance the organization."

Townsend added that nearly 35 formal PCAC motions have gone to the Board in the past 18 months pertaining to waterfront development in San Pedro and Wilmington, environmental issues, the Port's master plan, and mitigation projects. These efforts underscore the original goal of Mayor Hahn for the Port to work with the community and give the community a voice in Port-related issues.

Port Master & Transportation Planning

While an updated Strategic Plan is the top priority cited in the IEAS report, the report also provided a number of recommendations to add more structure and continuity to master planning, policies and procedures. These recommendations include a project prioritization system for a Department Capital Improvement Plan, which includes a thorough review and update of related policies and procedures. The report also called for a more stringent financial analysis of major capital projects (lease-related or otherwise). The Port plans to include these measures and other report recommendations in its 2005-2006 budget and capital improvement planning processes.

The Port will incorporate existing master plan elements into a comprehensive Master Plan as suggested by the report. The current Master Plan required under the Coastal Act will be incorporated, in whole or in part, as an element of a new comprehensive Master Plan.