Spending by Port Exceeds Others
The Port of Los Angeles, which earlier this week awarded its former executive director a $540,000 marketing contract, spends significantly more on marketing and public affairs than several other major U.S. ports.
The port, the nation's largest, has a marketing budget more than three times that of the Port of Long Beach, which is the next-largest port and handles about 70% as many containers.
Some Los Angeles City Council members sharply questioned those costs Thursday, a day after many of them said they wanted to scrutinize a unanimous port commission decision to award a three-year consulting contract to former port Executive Director Larry Keller.
Keller, who resigned amid criticism last month, has been called to testify before a federal grand jury investigating city contracting, and some City Council members suggested that it was inappropriate to pay him half a million dollars given his status as a witness.
"It's clear that port officials have a lot of explaining to do about why their marketing costs are just so out of step with the nation's other leading ports, especially on the heels of revelations about a golden parachute" for Keller, said Councilman Antonio Villaraigosa, who is running for mayor.
The port's spokesman, Arley Baker, said the port spent much more on marketing and public affairs than Long Beach because that port "operates somewhat of a different business model, so you're not comparing apples to apples."
"In the days ahead," Baker added, "we will endeavor to explain our port operation in terms of size and scope so our city legislators have a clear understanding of the asset they have in the Port of Los Angeles."
Keller's contract appears to be standard practice for former Los Angeles port directors. Port officials on Thursday released documents showing that the last two executive directors received lucrative contracts when they left.
Even before the port commission decided to pay Keller $180,000 a year, the port's marketing and public relations costs were much higher than at other major U.S. ports, according to statistics supplied by those ports.
The Los Angeles port has a public affairs department with an annual budget of $7.4 million and a staff of 18. The marketing department has a $6-million budget, an in-house staff of 15 and 11 marketing representatives around the world, port officials said.
