A nearly 10-month-late master agreement outlining reimbursement costs for Los Angeles serving as the host city of the 2028 Olympic and Paralympic Games grew one step closer to being finalized after an amendment was approved Wednesday.
In a 10-4 vote, the Los Angeles City Council authorized an amendment to the so-called Enhanced City Resources Master Agreement with the Los Angeles 2028 Olympic and Paralympic Organizing Committee. The agreement would obligate LA28 to provide the city with funding in advance to cover services that wouldn’t qualify for reimbursement from the federal government.
Council members Monica Rodriguez, Nithya Raman, Eunisses Hernandez and Ysabel Jurado opposed the matter.
“This is a multifaceted, complicated agreement that is dependent upon other agreements that have been made,” said City Administrative Officer Matt Szabo, the lead negotiator for the city. “It is necessary that we keep in mind that we are in some way confined to prior agreements that were made as a condition of agreeing to host the games that include inherent risk.
“This is not an agreement that is intended, or even has the capability of eliminating risk that the city has agreed to take on,” Szabo added.
The amendment seeks to authorize an audit upon completion of the 2028 Games that would be paid for by LA28. Such an audit would occur before any city funds can be used to cover costs in excess of revenues.
The amendment will need to be approved by LA28 for it to be included in the master agreement.
Wednesday’s vote marked a significant step as both parties work to finalize the legal document for reimbursing the city for any services that go beyond a normal day, such as traffic control, sanitation and trash pick-up.
The master agreement came to the full council after the Ad Hoc Committee on the 2028 Olympic and Paralympic Games advanced it without major discussion.
On Wednesday, the council had a robust conversation on the agreement, with several members expressing concern because it does not ensure that all city expenses would be reimbursed before LA28 could declare a surplus.
Council members continue to worry as the city would be on the hook for the first $270 million, and are at risk of covering millions more if the 2028 Games fail to yield profit.
Rodriguez said she voted against the agreement because it failed to establish a clear baseline of city services, financial protections for LA taxpayers, and accountability that the city needs to successfully host the games.
“Notably, it evades addressing the most prevalent expense — security costs — and establishing a baseline rate for municipal services that would be applied to every municipality that is hosting events. This ECRMA fails to provide any safeguards for Los Angeles taxpayers and most assuredly risks the city’s fiscal stability,” Rodriguez said in a statement.
The Los Angeles Police Department, among other law enforcement agencies, is expected to provide 2028 Games-related security. The cost of this service is estimated at $732.2 million, but is not covered by the master agreement.
LA28 and city officials are banking on federal reimbursement. President Donald Trump’s “One Big Beautiful Bill” provided $1 billion for security, planning and other cost associated with the 2028 Games, yet there are still concerns that the money may not be provided after the Games, or security costs will go beyond that amount.
If the federal government does not fully reimburse the city for security costs, Los Angeles would be able to access some of LA28’s contingency funds.
In addition to the audit-related amendment, the council voted on five other changes. Those remaining amendments were sent back to the ad hoc committee for further discussion at the behest of Council President Marqueece Harris-Dawson.
Raman, who is challenging Mayor Karen Bass in the November election, introduced an amendment that attempted to have LA28 use any available surplus of revenues following the 2028 Games to pay off all city expenses related to the event.
Under the master agreement, LA28 is not mandated to reimburse the city with any available resources it may have left after the 2028 Games for costs that are not paid for by the state or federal government.
Szabo explained that the Games Agreement, an overarching parent agreement finalized in 2021, essentially set the rules for how city resources will be reimbursed. The Enhanced City Resources Master Agreement provides more specific details and additional protections for Los Angeles as the host city.
Additionally, the city still needs to work out Venue Service Agreements, which will come later based on the operational plans once completed by LA28. The venue agreements will determine what services will be provided and the dollar amount the city would be reimbursed for, according to Szabo.
The two parties have previously said they plan to finalize venue agreements by July 2027, and cost of those services by Oct. 31 that same year.
Szabo said that recent reports from LA28 indicated they are meeting target sponsorship and other revenues goals.
“At the end of the day, our success is dependent on them,” Chief Legislative Analyst Sharon Tso said of LA28. “Their success is dependent on us, as well. And so we are anticipating that this will generate the surplus which is necessary so that the city will be reimbursed for all costs.”