City Administrative Officer

Los Angeles ZooAlternative Management Structure

Q & A

City Administrative Officer

Why an alternative management structure for the LA Zoo?

Maintain the LA Zoo as an affordable educational institutionShare the cost of operating the LA Zoo with another entityRelieve financial pressure on other General Fund Departments

City Administrative Officer

How much will the City save with an alternative management structure?

• At least $20 million in General Fund savings over five years

• Additional savings through related costs

City Administrative Officer

Will there be layoffs? What will happen to LA Zoo employees?

• No City employees will be laid off as a result of the alternative management structure.

• Current Zoo employees will have the option of remaining City employees.

City Administrative Officer

What will happen to employee salaries and benefits?

No changes to existing employee salaries and benefits will result from the transition to an alternative management structure.

City Administrative Officer

What about the Zoo GM?According to the City Attorney,

• The LA Zoo General Manager cannot have dual employment;

• There must be a City employee in charge of, and responsible for managing and supervising, City employees that remain at the LA Zoo;

• The organizational structure should be an element of the proposal; and,

• Each prospective operator should be required to address how the organizational structure would interface with the City's employee workforce and supervision requirements.

nCity Administrative Officer

Would the Zoo Department andZoo Commission be abolished?• Policy decision for Council.• The Zoo Commission will continue to exist

under the AMS.• The organizational structure of the LA Zoo

would be an element of the proposal by any prospective operator.

City Administrative OfficerIII

Who would be responsible for insurance?

The selected operator will be required to maintain insurance levels that are deemed acceptable by the City Risk Management.

City Administrative Officer

How many responses to the RFP are anticipated?• The KPMG report identified a high

possibility of a limited number of bidders.

• The City must prepare for a negotiated financial bid.

City Administrative Officer

What if there is only one response to the RFP? How do we proceed?

• Regardless of the number of proposals received, each proposal will be reviewed based on the criteria set forth in the RFP.

• The City reserves the right to reject any and all proposals.

• The City also reserves the right to further negotiate terms with selected operator.

City Administrative Officer

What has been the budget impact to other zoos that transitioned?

Other zoos that transitioned appear to have prosperedThe Lincoln Park Zoo’s budget increased by 38 percentThe Denver Zoo’s budget almost doubledThe Houston Zoo’s budget increased by 150 percent

City Administrative Officer

Would animal welfare be negatively affected?

• No, animal welfare will not be negatively affected by an alternative management structure.

• There is consensus among stakeholders that the Association of Zoos and Aquariums (AZA) accreditation is an absolute requirement under any operating structure.

• Of the eight zoos that transitioned over the last ten years, none has lost AZA accreditation.

Will public access to animal welfare information be affected?

The selected operator would be required to provide public access to information that normally would be considered a matter of public record at any publicly-owned facility.

City Administrative Officer

City Administrative Officer

Would the City still be able to ij issue bonds for capital *23improvements?• Yes, the City should still be able to issue bonds

for capital improvements at the LA Zoo.• The City bond counsel stated that

accommodation of the proposed alternative management structure within the City debt requirement is feasible, but dependent on the final operating agreement.

• The draft RFP requires the selected operator to commit to a five-year capital program.

J^City Administrative Officer

Would the selected operator be required to comply with the City contracting policies?

The selected operator must comply with all City contracting laws and requirements, unless exempted by Council action.

City Administrative Officer

Who would own the animal collection?

• The City will maintain ownership of the animal collection.

• Prior City approval will be required for all changes to the animal collection.

• The selected operator must comply with AZA Acquisition/Disposition Policy, which supports AZA’s commitment to “save and protect the wonders of the living natural world”

City Administrative Officer

Will the City continue to subsidize the LA Zoo?

The City is anticipated to continue to provide an annual subsidy to the LA Zoo to maintain the current service level, as well as maintain the LA Zoo as an affordable destination for City residents.

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City Administrative Officer

What will happen to the admission prices?

• The admission prices are not expected to increase due to the transition to an alternative management structure.

• One of the goals of an alternative management structure is to provide opportunities and enhancements while maintaining the LA Zoo as an affordable destination

Would there be increased fundraising capability?

• Interviews with zoos that have transitioned revealed that greater access to fundraising is available through a private structure.

• Evidence suggests that philanthropic groups are more willing to donate to non­profit organizations than government.

• The RFP requires proposers to outline their fundraising goals with timeframes.

City Administrative Officer

City Administrative Officer

What would happen with the City’s relationship with GLAZA?

• The RFP requires a transition plan that addresses the City’s operating agreement with GLAZA.

• The selected proposer must either:- Work cooperatively with GLAZA or- Demonstrate that it is able and willing to

provide equivalent services.