TESTIMONY PRESENTED BEFORE THE FACILITIES AND PROCUREMENT COMMITTEE
OVERSIGHT HEARING OF THE DEPARTMENT OF GENERAL SERVICES
By Ellen Opper-Weiner
February 28, 2019
Good morning, Chairman Robert White, Jr. and members of the Committee. My name is Ellen Opper-Weiner. Last year I testified before the Committee on Transportation and the Environment at the Oversight Hearing of the Department of General Services (DGS).
Before I began to prepare this year’s testimony I re-read what I prepared last year. Much to my surprise not only are all the problems still the same, in fact the situation at Eastern Market is much worse! The South Hall merchants have seen a significant decline in their business over the last three (3) years with an estimated reduction in income in the range of from 15-35%.
Although last year at the Oversight hearing, I raised the following issues:
1. That Eastern Market is being managed by the City contrary to current law: and that the market was being managed by a Realty Property Specialist who does not have the requirements specified in the law Eastern Market Management and Regulation Act Section 37-105 for a Market Manager. That is still true.
2. That the “current management is not performing to the benefit of Eastern Market in part because of its punitive approach to the operations of the South Hall merchants, the mainstay of the market, rather than attempting to determine how the market manager can be of help to the existing businesses both inside the market.” That is still true. In fact the market manager during his ten (10) year tenure managing Eastern Market has never had a meeting with the South Hall merchants to hear their concerns in an effort to address any existing problems.
3. That there had been no advertising and promotion of the South Hall merchants and the Market Manager had not developed a written Advertising and Marketing plan for the market. Although there has recently been some limited advertising of the fresh food component of the market, there still is no written Advertising and Marketing plan for Eastern Market.
4. There has been no public discussion regarding various decisions made by DGS with regard to issues related to the operations of Eastern Market, such as continuing the closure of the 200 and 300 blocks on the weekends to traffic and parking. In addition, these decisions were made without any studies nor competent data to support these decisions which were often made behind closed doors. Therefore, no reliable evaluation of these decisions can be made. That is still true.
As a result of this situation, some Capitol Hill residents who care deeply about the survival of Eastern Market revived the non-profit corporation, the Eastern Market Preservation and Development Corporation (EMPDC) in January of 2018, which was dissolved by DCRA on September 13, 2004. I currently serve as its President. Our mission is to ensure the survival of the Historic Eastern Market, especially the fresh food elements, the South Hall and Farmers Line, as emphasized in the Eastern Market law. See Section 37-104.
We also want to ensure that the priorities for the use of the outdoor space specified in the law are followed. See Section 37-105(o), which describes the priorities for the Farmers Line and the use of the North Plaza. In fact, the Farmers Line is not given the priority for the use of the outdoor space around the market. At least one (1) farmer has asked repeatedly for additional space to sell his locally grown produce, and he has been repeatedly denied. Instead, space on the carefully defined Farmers Line is given to sellers of non-food items, instead of to a farmer.
Other issues of concern relate to the reporting requirements of the Market Manager in the law are not being fulfilled. For example, in Section 37-105(f), the Market Manager is supposed to prepare “a budget for the annual operating expenses and any capital improvements that may be required, together with any necessary cost/benefit analyses, and shall submit the budget to the EMCAC for its review and recommendations at a public meeting.” To my knowledge this provision was not always followed and until this year, planning for the FY 2020 budget was the first time in the past ten (10) years that the Market Manager or DGS made any request for money for capital improvements for Eastern Market despite the obvious capital improvement needs of the market.
Further, in Section 37 105(i), the Market Manager is supposed to “Within 30 days of each September 30, and April 30, . . . shall prepare a written report of operations for the previous 6 months including a summary of revenues by source and of expenditures by kind and shall submit a copy of this report to the CPMO and the EMCAC. To date, it is my understanding that these reports have not ever been received in the past ten (10) years.
One of the most egregious aspects of the city’s management has been its misuse and mismanagement of the Enterprise Fund as delineated in Section 37-103. ” The CPMO shall deposit into the Fund all revenues, proceeds, and moneys from whatever source derived that are received by the CPMO on behalf of Eastern Market”. Also “The money deposited into the Fund shall not revert to the unrestricted Fund balance of the General Fund of the District of Columbia at the end of the fiscal year, or at any other time.” Yet the monies have been swept into the General Fund repeatedly. In fact, until this past year the EMCAC had difficulty in obtaining the actual balance in this account from DGS. Nevertheless, it remains unclear as to how or why the monies suddenly appeared in this account this year. Since I am currently serving as a member of the EMCAC’S Finance Committee and regularly attend the EMCAC’s public meetings, I have received this information.
It is my hope that this situation at Eastern Market will change in the very near future so that Eastern Market is preserved and does survive. On behalf of the EMPDC and myself we ask that you Mr. Chair and the other Committee members take immediate action to help save Eastern Market and take the necessary steps consistent with your oversight function to achieve this result. I will be happy to answer any questions that you may have. Thank you.