UPDATE: City says it wants ‘full accounting’ of zoo group funds
EL PASO, Texas (KTSM) — The City of El Paso and the El Paso Zoological Society have traded charges over the weekend concerning an expired agreement between the two that was not renewed earlier this year.
The El Paso Zoological Society said in a statement issued late Friday night, May 17, that the City is demanding the transfer of all its funds “without committing to their use for the betterment of the zoo.”
Back in March, the City of El Paso ended a longstanding partnership with the Zoological Society when the City decided not to renew the non-profit’s contract.
City decides to cut ties with Zoological Society
“The El Paso Zoological Society remains resolute in its commitment to support the El Paso Zoo amidst the, as of now, unexplained nonrenewal of the agreement with the City of El Paso,” the nonprofit organization said in a statement.
The Zoological Society said that since the agreement between their organization and the City expired in March, “discussions have been underway to find an amicable resolution. However, recent correspondence from the City has reignited challenges, as the City has reverted to its demand for the Society to transfer all its funds without committing to their use for the betterment of the Zoo,” the Zoological Society said.
The City, however, countered with a brief statement on Friday, saying they are “concerned about a lack of transparency and financial accountability of donations made to and memberships sold by the society in support of the zoo.”
The City also said it has “every intention of using the funds for the betterment of the zoo and has always communicated as such.”
The City also said: It “has repeatedly urged the society to consider allowing for a full accounting of funds and expenditures by a mutually agreed upon third party CPA. They have declined to do so.”
On Sunday, May 19, the City issued what it called a “comprehensive statement regarding the Zoological Society.”
The City said it had repeatedly declined media inquiries about this issue because the City said the society had requested through their lawyer that the City stop making statements.
The City believed that this dispute could be resolved amicably between City staff and the Society’s board members, it said in its Sunday statement.
“However, in light of the society’s recent press release, the City is once again compelled to provide answers to numerous questions asked by media,” the City’s latest response said.
El Paso Mayor Oscar Leeser said: “Ensuring the El Paso Zoo continues to thrive is a top priority for our community. The funds raised must directly benefit the zoo and fulfill their intended purpose. Transparency and accountability are vital, and we urge the Zoological Society to work with us to resolve these matters responsibly. We remain committed to finding a solution that supports the zoo’s mission and serves the best interests of our citizens. Our number one priority is the success of the zoo as we close out the prior agreement, and explore various avenues to continue to support the zoo for the benefit of our entire community.”
The mayor and City Council will be getting legal advice in Executive Session on Monday, May 20, at which time they may act and direct staff on next steps, according to the City’s statement issued on Sunday.
Here are other points raised by the Zoological Society in its statement issued Friday night:
Ownership of Funds: The society clarifies that funds under its administration were generated through public memberships and donations earmarked for specific zoo-related purposes. The society’s fiduciary responsibility lies in ensuring these funds are utilized in accordance with donors’ wishes, a commitment upheld during the term of the license agreement.
Demand for Fund Transfer: The society contends that the City’s demand for unrestricted access to funds is unsupported by the terms of the license agreement. Moreover, the lack of articulated plans for fund utilization raises concerns about accountability and adherence to donor intent.
Legal Obligations: The society asserts that the City’s request for financial accounting post-agreement termination lacks legal basis. Despite past cooperation and provision of financial reports, the society maintains its position against undue scrutiny without a new agreement in place.
Call for Mediation: Recognizing the impasse, the society proposes mediation as a constructive way forward. Emphasizing the mutual benefits of resolving the dispute outside of litigation, the society seeks City cooperation in engaging a neutral mediator.
“In light of these developments, the El Paso Zoological Society reiterates its unwavering dedication to supporting the zoo’s financial needs and urges the City to reconsider its stance in the interest of a swift and equitable resolution,” the Zoological Society said in its statement.
As KTSM previously reported, the Zoological Society is run by a volunteer board and receives funds from local donors. For more than 60 years, the organization has worked with the El Paso Zoo assisting with education programs, operational support and memberships.
The contract was initially set to expire in December 2022 but was granted two extensions. On Feb. 26, the Zoological Society was notified that the contract would not be renewed, and the non-profit would need to vacate zoo grounds by March 17.
In the City’s comprehensive statement issued on Sunday, the City says the society “still holds substantial funds collected during the term of the agreement.”
“The society has an obligation to account for and transfer those funds to the City for their intended purpose,” the City said.
The City also said the “City will not contemplate entering into a new agreement because the society refuses to be transparent with the funds it holds which were collected under the previous agreement.”
As for the society’s calling for mediation, the City said that “traditionally, parties engage in mediation after a period of fact finding and the exchange of information, which is another reason for a full accounting is needed.”
“Furthermore, at no time has the City been unwilling to meet and discuss how to move forward,” the City said in its longer statement on Sunday.
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