HomeMy WebLinkAboutIR 9219 INFORMAL REPORT TO CITY COUNCIL MEMBERS No, 9219
To the Mayor and Members of the City Council
April 6, 2010
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SUBJECT: RENEWAL OF ZOO MANAGEMENT CONTRACT
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The purpose of this Informal Report is to provide the City Council with an update on the Zoo
Management Contract renewal process as well as to outline the major contract terms under
review. The current contract with the Fort Worth Zoological Association [City Secretary Contract
No. 18454, as amended] was authorized in 1991 and has a twenty [201 year initial term with
unlimited successive ten [101 year renewal periods by mutual agreement. The initial term of the
contract is scheduled to expire on May 14, 2011. The Fort Worth Zoological Association [FWZA1
and the City have expressed their desire to negotiate a revised contract prior to the completion of
the initial term, primarily to address long-term financing requirements for operations and major
capital improvements.
BACKGROUNQ
The current Zoo Management Contract has undergone four separate amendments since 1991.
In 1994, the First Amendment [M&C C-144901 authorized the FWZA to operate and maintain the
existing main Zoo parking lot as well as the areas known as the Archery Range and Colonial
North. This amendment allowed the FWZA to set and collect parking fees.
In 1998, the Second Amendment [M&C C-171411 authorized the FWZA to manage the $3 million
in capital improvements at the Zoo funded by the City of Fort Worth 1998 Capital Improvement
Program.
In 2001, the Third Amendment [M&C C-18527] authorized an increase of the annual payment to
the FWZA. The goal of this amendment was to restore the operating subsidy to its original
contract intent. The annual payment was increased by $1,445,755.00 over a four [41 year period
which helped to raise the annual subsidy to its current level of$5,416,139.00.
In 2002, the Fourth Amendment [M&C C-19035 Revised] eliminated the Aquarium, Lion
Mountain, and Small Mammal Village capital projects from the 1998 Capital Improvement
Program bond-funded projects and reprogrammed the funds associated with these projects for
the construction of a new l-lerpetarium [now known as the Museum of Living Art].
Co T A T �lE AN Ll l E
staff members from the City and the F'� began meeting regularly n May 21, 008 and have
idetied the major terms and issues relevant to the negotiatio process, including,
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1, €he City's annual subsidy payment to the Zoo [currently budgeted at $5£416,139.00 and
adjusted annually by the Consumer Price Index].
Currently, no t t Combined sum of the annuai
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z ' h f � a in the current contract only
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ISSUED BY THE t TY MANAGER FORT WORTH, TXA
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9219
To the Mayor and Members of the City Council
April 6, 2010
n AAir Page 2 of 2
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SUBJECT: RENEWAL OF ZOO MANAGEMENT CONTRACT
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addresses the initial 20-year term and does not specify how fees are to be calculated in the 21 st
year and beyond.
3. Funding for service and support facilities and infrastructure including capital improvements that
traditionally do not attract benefactors such as aging restrooms and maintenance facilities, and
circulation systems.
4. Allocation of gas well revenues to support the construction of capital projects.
Recent Developments and Accomplishments.
On Saturday March 6, 2010, the Museum of laving Art was officially opened to the public. This
$20 million facility will fuifill the agreed upon replacement of the Herpetarium as authorized in the
Fourth Amendment. With the completion and vesting of the Museum of Living Art, the value of
the capital improvements managed, subsidized and underwritten by the FWZA [of which titles
vest to the City of Fort Worth] totals approximately $120,000,000.00.
fe"21 kK It is also important to note that Zoo attendance has doubled under the FWZA leadership and our
Zoo is now one of the top five zoos in the country. The Zagat survey has ranked the Fort Worth
Zoo as the #1 attraction in the DFW area. Zoo visitors outside of Fort Worth number
approximately 800,000 annually. The estimated annual economic impact to the City is about
$124,000,000.00. The Zoo is responsible for an estimated $3,200,000.00 in annual tax revenue
for the City. The FWZA has also provided free admission annually for more than 5,000 children
in Fort Worth.
Staff has completed additional research on each of the aforementioned policy issues and will
continue negotiations with the FWZA.
Should you have any questions regarding this matter please contact Richard Zavala, Parks and
Community Services Director at 817-392-5704, or Charles W. Daniels, Assistant City Manager, at
817-392-6199.
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CITYMANAGER FORT WORTH, TEXAS