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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: OCTOBER 28, 2025
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: COOPERATIVE AGREEMENT BETWEEN DISNEY AND THE
CITY OF ANAHEIM FOR FUNDING, DESIGN AND
CONSTRUCTION OF THE KATELLA AVENUE WIDENING
PROJECT
ATTACHMENT (Y/N): YES ITEM # 19
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, approve the Cooperative Agreement between the City of Anaheim and Walt Disney Parks and Resorts U.S., Inc. (Disney), in the amount estimated at $10,030,000, for funding, design, and construction of the Katella Avenue Widening as part of the Resort Area Sanitary Sewer and Roadway Widening Improvement Project (Project), and authorize and direct the Director of Public Works or designee, on behalf of the City of Anaheim (City) to execute the Agreement and any related documents, and to take any and all actions as are necessary to implement and administer the Agreement; and increase the Department of Public Works revenue and expenditure budget by $750,000.
DISCUSSION:
Disney is responsible for widening the northern side of Katella Avenue from 800 feet west of Harbor Boulevard to Disneyland Drive with a fourth westbound lane pursuant to the Subsequent Environmental Impact Report (SEIR) No. 352 Volume 2 Appendix J-2 (Katella Avenue Widening Project).
The Department of Public Works initiated the design for the Resort Area Sanitary Sewer Project on the northern side of Katella Avenue from Harbor Boulevard to Ninth Street and the southern side of Katella Avenue from Harbor Boulevard to West Street upon approval of the General Plan Amendment and the First Amended & Restated Development Agreement No. 96-01 (1st Amended Agreement) with Disney.
Disney approached the City seeking a partnership for the City to implement the Katella Avenue Widening Project with the Resort Area Sanitary Sewer Project to minimize impacts to residents, businesses, and guests in the resort area while also taking advantage of economies of scale and streamlined coordination. Staff believe this cooperative approach benefits all and therefore is in the best interest of the City. By partnering with Disney, both the sewer and the roadway widening can be completed prior to the 2028 Olympics, fostering further development in the resort area.
Cooperative Agreement Between Disney and the City of Anaheim for Funding, Design and Construction of the Katella Avenue Widening Project October 28, 2025
The Cooperative Agreement indicates that the roadway widening design cost is estimated to be $750,000, and the construction cost is estimated to be $7,500,000 - $9,280,000. Disney has agreed to pay for all expenses associated with and incurred for the Katella Avenue Widening Project.
This Project supports Anaheim’s Strategic Plan Goal C – Invest in Infrastructure and Amenities, specifically Strategy No. 4 – “Improve, enhance beautify, and maintain major street corridors”. In addition, it supports Anaheim’s Strategic Plan Goal F – Promote Economic Development and Tourism, specifically Strategy No. 1 – “Explore opportunities to maximize the benefits of the 2026 World Cup and the 2028 Olympics.”
IMPACT ON BUDGET:
This action will increase the Public Works Department’s FY 2025/26 Local Contribution Grants Funds budget by $750,000.
Respectfully submitted,
Rudy Emami
Director of Public Works
Attachment:
1. Cooperative Agreement