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CITY COUNCIL AGENDA REPORT
City of Anaheim
CONVENTION, SPORTS & ENTERTAINMENT
DEPARTMENT
DATE: NOVEMBER 13, 2024
FROM: CONVENTION, SPORTS & ENTERTAINMENT DEPARTMENT
SUBJECT: AMENDMENT TO ALLOCATION AGREEMENT WITH
ANAHEIM ARENA MANAGEMENT, LLC, REGARDING
REMEDIATION OF ADA BARRIERS AT THE HONDA CENTER
AND REIMBURSEMENT FOR WORK PERFORMED ON
ANAHEIM'S BEHALF
ATTACHMENT (Y/N): YES ITEM # 10
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1. Approve a First Amendment to Allocation Agreement ("Amended Agreement") between the City of Anaheim (City) and Anaheim Arena Management, LLC (AAM) increasing the final reimbursable amount payable by the City of Anaheim (City) to AAM by approximately $139,000, from $1,300,000 to $1,439,000, for work performed by AAM on behalf of the City related to the completion of certain architectural remedial work at the Honda Center pursuant to the previously authorized settlement of lawsuits filed under the Americans with Disabilities Act of 1990 ("ADA"); and
2. Authorize the Executive Director of the Convention, Sports & Entertainment Department to execute the Amended Agreement on behalf of the City and to take any and all actions as may be necessary to implement the agreement.
DISCUSSION:
In 2014, the City Council authorized settlement of two related federal lawsuits (Marilynn Pike et al. v. City of Anaheim, et al., USDC Case No. 8:12-cv-00838-JVS-AN and Sandy Taylor et al. v. City of Anaheim, et al., USDC Case No. 8:14-cv-00033-JVS-AN) filed against the City and AAM concerning the Honda Center's alleged violations of the ADA.
Title II of the ADA imposes an obligation on the City as owner of the facility to make it readily accessible to individuals with disabilities. The City has a contractual agreement with AAM to operate the facility, and under Title III of the ADA operators of public facilities also have obligations to make those facilities fully accessible. Thus, the City and AAM have respective legal obligations to ensure that the Honda Center is equally accessible to all individuals with disabilities.
Amendment to Allocation Agreement with AAM regarding remediation of the ADA barriers at the Honda Center and Reimbursement
November 13, 2024
To comply with the settlement of the lawsuits, the City and AAM agreed to work together to accomplish ADA barrier removal by modifying certain physical aspects of the facility, and to allocate the cost of modifications consistent with their prior operational agreements.
In order to minimize disruption of AAM's ongoing management of operational aspects of the Honda Center, the parties agreed that AAM would perform and pay for the remedial work allocated to both parties, subject to the City’s reimbursement to AAM for the cost of remedial work performed on the City's behalf.
Based on estimates of the cost to complete the City’s share of improvements and architectural modifications, including compliance with prevailing wage requirements, in 2016 the Council approved reimbursement to AAM in an amount not to exceed $1,300,000. That amount was eventually exhausted as the repairs and modifications proceeded over a period of several years. As costs allocated to the City were submitted by AAM for reimbursement after that, the parties agreed that reimbursement would proceed only after verification that all City allocated work had been completed. AAM has now verified the completion of all ADA upgrades, and the aggregate outstanding charge for work allocated to the City is approximately $139,000.
The proposed Amended Agreement is necessary to authorize the agreed final reimbursement to AAM in an amount not to exceed $139,000, and to facilitate compliance with the City's obligations under the lawsuit settlement agreements and allocation agreement with AAM.
IMPACT ON BUDGET:
The expense of complying with the settlement and allocation agreement is included in the Convention, Sports and Entertainment Department’s annual budget.
Respectfully submitted,
Tom Morton
Executive Director of
Convention, Sports & Entertainment Department
Attachments:
1. First Amendment to Allocation Agreement re Settlement of Injunctive Claims
2. Allocation Agreement re Settlement of Injunctive Claims