LOS ANGELES — The Los Angeles City Council’s ad hoc committee on the 2028 Olympic and Paralympic Games on Tuesday forwarded a tentative enhanced services agreement between the city and LA28 while members continued to express concerns about the city’s fiscal exposure and frustration with LA28 top officials.
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The tentative Enhanced City Resources Master Agreement (ECRMA) to determine which beyond “normal and customary” city services, such as police, transportation and sanitation, LA28 will compensate the city for comes eight months after an October 1 deadline and still must be approved by the city council and Mayor Karen Bass.
Under the agreement, the city will have the right to audit LA28’s surplus. The surplus would be any revenues coming in above expenditures. A final cost estimate for enhanced services is scheduled to be completed by October 31, 2027. A payment schedule will then be established with LA28 required to make a payment to the city on the first of the month the service is provided.
City officials will present a final payment statement to LA28 by December 1, 2028.LA28, as part of an agreement with the city when Los Angeles was awarded the Games, established a $270 million contingency fund which is monitored by the city. The organizing committee also has comprehensive insurance policies as protection in case of natural disasters or security threats.
LA28 also has a roughly $330 million unallocated contingency fund, said Matthew W. Szabo, Los Angeles chief administrative officer.
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Under the agreement, LA28 is required to annually deposit up to 10% of its cash-on-hand into the contingency fund.
If there is a post-Games deficit, the city is responsible for the first $270 million after the $270 million LA28 contingency fund is exhausted. The state is on the hook for the next $270 million after the city. If the Games finish without a deficit, the contingency money will be directed to a legacy fund to support youth programs and other sports initiatives.
Approval of the agreement is also important because LA28 cannot enter into similar agreements with other Olympic venue cities, such as Anaheim, Inglewood and Long Beach, until the Los Angeles deal is in place. LA28 is also unable to reach venue services contracts with Olympic and Paralympic competition sites until the Los Angeles deal is finalized.
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