Councilmember Jack Evans remarks for April 24, 2013 FY 2014 Budget Hearing on EventsDC (Washington Convention and

Sports Authority), Commisison on Arts and Humanities, DestinationDC Good morning and welcome to the Committee on Finance and Revenues first public oversight hearing this year. The time is ____ a.m., and I recognize the presence of my colleagues _________________. Today we will be hearing from the Washington Convention and Sports Authority, also known as EventsDC, Destination DC and the Commission on Arts and Humanities for Fiscal Year 2014 Proposed Budget and Financial Plan as presented by the Mayor. As I mentioned at the recent performance oversight hearing, the latter two entities fall within my committees oversight jurisdiction for the first time this year. I have grouped these three entities together today because they share a tremendous ability to be economic development drivers for the District. On April 30th, the Committee will be

holding a second Fiscal Year 2014 Proposed Budget and Financial Plan hearing that will cover the Office of the Chief Financial Officer, the DC Lottery, and the Real Property Tax Appeals Commission, and is scheduled to begin at 12 noon here in the Council Chambers. All my colleagues talk about wanting to create jobs, but investments in tourism and the arts actually make job creation a reality. Our tourism industry is an important driver of our economy, and our efforts to market the District ensure that jobs in our restaurants and hotels are available for graduates of our hospitality high school. Similarly, the economic development that can be tied to the arts is literally billions of dollars, and the Commission on Arts and Humanities also plays a critical role in supplementing what in my opinion is way too little focus on arts education in our public school system. I introduced a bill to require an arts teacher in every public school, along with music teachers, librarians, and PE teachers, because I think these are basic services we should be able to provide our children and youth out of a $1 billion education budget.

Last year, I found $6.8 million additional dollars for the Commission on Arts and Humanities, and I told the Mayor that I would like $20 million for the Arts for Fiscal Year 2014. Unfortunately, while I support the vast majority of the Mayors proposal, I cannot support the dramatic cuts he made to the arts, down to just $7 million in operating dollars. I support the increased capital funding budget of over $2 million new dollars annually, but I will be working between now and the end of the budget process to bring our funding much closer to $20 million. With regard to Destination DC, I identified a recurring $3 million annual payment to ensure additional marketing efforts for our city as a destination, both for large conferences as well as individual tourists. I will be seeking to index this number to inflation this year, so that we dont have to revisit it in 20 years to right size the number. EventsDC has an independent funding mechanism, and had an economic impact of over $350 million in fiscal year 2012 from conventions and meetings alone, with another $50 million in sports and entertainment related economic impact.

So with all that being said, lets get started. 2013 Questions from the DAIS to ask (distinct from the pre-hearing questions, though some overlap)
For WCSA/EVENTS DC 1. What is the status of the Convention Center hotel? 2. I know you make great efforts to hire District residents. Can you tell us about the Contract for a Workforce Intermediary, to implement the Headquarters Hotel Jobs Training Program? Can you talk about the variety of job training that will be offered and the timeframe for it to begin? And, how can we learn from the successes of this program and work to replicate it elsewhere in the city? 3. What is the status of the Carnegie Library? 4. What is the status of your bond repayment? 5. In my written questions, we asked both you and Destination DC about a visitors center, and you both essentially pointed the finger at the other agency. Who is responsible for a visitors center and what are your thoughts on its possible implementation? And

what we can do in general to attract and educate visitors about all our city has to offer? For DestinationDC 1. In my written questions, we asked both you and Events DC about a visitors center, and you both essentially pointed the finger at the other agency. Who is responsible for a visitors center and what are your thoughts on its possible implementation? And what we can do in general to attract and educate visitors about all our city has to offer? 2. Can you provide a production report for the 2013 cherry blossom festival? 3. What is new in terms of marketing for 2013? 4. You mention 2011 was a record year for visitors, which is great! How many visitors did Washington see in 2012? 5. I was pleased to be able to allocate an additional $3 million to your budget for last year and going forward. Are you able to track additional economic impacts of this investment? I am hopeful to be able to protect and increase this allocation in future years and think it is important that we demonstrate a productive use for the funds.

6. What else can we be doing to better market Washington DC? What other resources would be helpful to you? For Commission on Arts and Humanities 1. Lets talk about your grants last year. As I mentioned, I was pleased to identify the extra funding last year. Can you tell us about the highlights from the grants process from last year, perhaps the top 5 grant recipients by dollar amount? 2. This year, I am considering also identifying some competitive grants to be administered by your office for particular purposes, such as to a theater that is looking to purchase its own space. Do you have any logistical problems with administering that type of grant? Ill ask you to work with my staff on the appropriate legislative language. 3. Lets talk about the Lincoln Theatre and the status of the contract - can you give us an update? And, with regards to programming- who is in charge of booking events, and have events been booked for 2014? Why are interested groups being told there is a hold on possible dates for event use? I have concerns that various community groups seek to use the theater, are

told there is no availability, and then the dates will come and go with the theater unused and vacant. IS programming staff going to remain constant despite the RFP for a new operator? 4. As you know, I am advocating for a $20 million budget for the Commission this year. Would you be able to administer a budget of that size? Walk me through some potential expansions of your programs. 5. In addition to the many cultural benefits from the arts, there is also a tremendous economic impact. Can you discuss that? 6. I understand you have a capital budget every year for public art installations and really appreciated the helpful chart you provided to committee staff. Can you walk me through some of the highlights of recently completed projects and your future plans? Can you tell us a little bit about your plans to use your new capital dollars?

FY 2014 Budget Questions Washington Convention and Sports Authority

FY 2014 Budget and Financial Plan Questions
1

Please list all program enhancements, technical adjustments, and reductions included within the FY14 budget. Please break down these costs by program. In addition, please provide a narrative description and rationale for each, along with associated dollar amounts and FTEs (if applicable). Please explain the increases for regular pay, and fringe benefits; how/where the cost savings from Energy, Comm. and Building Rentals, Contractual Services, and Land and Buildings. Please provide a list of all projects for which your agency currently has capital funds available, or for which capitals funds are requested in FY14. Please include in this list a description of each project, the amount of capital funds available for each project, a status report on each project, and planned remaining spending on the project. If capital funds have been reduced for a given project, please state the affect of the reduction. Please provide a list of all space that will be used by the WCSA, including: facility name, location, square footage, description, leased/owned designation, rent, and other fixed costs that are included in the cost of rent (utilities, security, etc.). Please note any space changes. Please provide a list of all events planned/scheduled for all locations for FY2014, including date, expected attendance, and size of event. What are plans for signature/key events in 2014? What is new for FY2014? What, if anything, is being discontinued? What are the FY2014 plans for the Carnegie Library and grounds? Please provide a breakdown of costs, events scheduled and any revenue anticipated. Has any consideration been given to creative uses of the space, such as short term rental space for local artists or hosting various performances (music, dance, etc.)? Will the proposed FY14 budget allow you to meet all statutory mandates? If not, please explain. Are you involved in the Mayors 5 year Economic Development Strategy? Please comment on any and all responsibilities, and/or efforts, partnerships, etc. What are your scheduled board/executive committee meeting dates for 2014?

5 6

7 8

10 What is the status of your contract with Destination DC? What is the timeframe for a new contract to

be executed? What changes from the current contract/structure are being contemplated?
11 What is the status of a visitors center in the city? Is a visitors center a worthwhile investment? Are

efforts made to welcome/assist visitors at key points of entry (Union Station? Airports? Metro stations? Nationals Park? RFK?) please elaborate on any/all efforts.

FY2014 Budget Questions Destination DC

Fiscal Year 2014 Budget and Financial Plan Questions 1. 2. 3. 4. What are your rates for 2014? What are your scheduled board/executive committee meeting dates for 2014? What changes or adjustments are you making based the economic climate? What are plans for signature/key events in 2014? Please provide a Destination DC activities calendar for 2014. 5. What is the status of your contract with EventsDC? What is the timeframe for a new contract to be executed? What changes from the current contract/structure are being contemplated? 6. When is the ROI study on the additional FY13 funding expected to be completed? Who is conducting this study? 7. What work does Destination DC do with the Commission on Arts and Humanities? 8. Are you involved in the Mayors 5 year Economic Development Strategy? Please comment on any and all responsibilities, and/or efforts, partnerships, etc. 9. What is the status of a visitors center in the city? Is a visitors center a worthwhile investment? Are efforts made to welcome/assist visitors at key points of entry (Union Station? Airports? Metro stations? Nationals Park? RFK?) 10. We are in the midst of the Cherry Blossom Festival. Do you have any initial numbers of the volume of tourists who came to DC for the festival? In terms of revenue, how much were you projecting this years event would bring in? If available, please provide any early numbers you may have on those returns and how they compare with last years. 11. Related to the above question, please describe marketing efforts and costs for promoting the Festival internationally, nationally, regionally and locally. Do you expect a bigger effort for 2014? Please explain. 12. How many hotel bookings and festival package requests came to and were handled by Destination DC? 13. Please provide a revenue profile for Destination DC revenues have traditionally come from Hotel Tax Receipts, Membership, Registration Services, and special funding and other income sources. Please provide a budget breakout by revenue source and expenditures. 14. What returns are you seeing in your international marketing efforts?

FY2014 Questions Commission on Arts and Humanities

Fiscal Year 2014 Budget and Financial Plan Questions 1. Please list all program enhancements, technical adjustments, and reductions included within the FY14 budget. Please break down these costs by program. In addition, please provide a narrative description and rationale for each, along with associated dollar amounts and FTEs (if applicable). 2. Please provide a list of all projects for which your agency currently has capital funds available, or for which capitals funds are requested in FY14. Please include in this list a description of each project, the amount of capital funds available for each project, a status report on each project, and planned remaining spending on the project. If capital funds have been reduced for a given project, please state the affect of the reduction. 3. Please provide a list of all space that will be used by the Agency, including: facility name, location, square footage, description, leased/owned designation, rent, and other fixed costs that are included in the cost of rent (utilities, security, etc.). Please note any space changes. 4. Will the proposed FY14 budget allow the agency to meet all statutory mandates? If not, please explain. 5. What is new for FY2014? What, if anything, is being discontinued? 6. What work (coordination, projects, etc.) do you do with Destination DC? With Events DC? What plans do you have to work with these entities and/or other DC Government agencies/entities for FY14? 7. What is the status of the Lincoln Theatre? Has an operator been selected, and if so who, and for what term of service? Also, please provide a copy of the contract. What is the operator responsible for? How is the operator being measured on successfully operating the theatre? What is planned for the theatre? What events are booked? How many events can the theatre handle in a year, and what is the target number of events to be held? 8. What are the formulas used to determine grant award amounts? Are any changes being contemplated? 9. Are you involved in the Mayors 5 year Economic Development Strategy? Please comment on any and all responsibilities, and/or efforts, partnerships, etc.

10. Are you aware of any District of Columbia Government buildings that do NOT have artwork on display in them? If so, any idea as to why and/or efforts to have art on display. 11. Please provide a detail description of efforts in/for the Humanities. Please list any and all grant opportunities that are not arts focused, and provide a description of each. How much of the budget goes to Humanities (for FY13 and FY14)? 12. Please provide a list of events that CAH sponsors, either through grant awards, coordination, or other support. 13. Please provide a quantitative and descriptive summary of the arts stabilization grant process. Was the program implemented smoothly? How much was budgeted? How much was granted? Did you receive feedback from applicants that did not receive an award or were told not to apply because they did not meet eligibility requirements (if so please elaborate)? Did you receive feedback from applicants who did receive an award (if so please elaborate)? Why didnt anyone receive the maximum amount?