Labor and Economic Development Committee

601 W. Jefferson Street Louisville Metro Government Louisville, KY 40202 Action Summary - Final Labor and Economic Development Committee Chair Person David Yates (D-25) Vice Chair Anthony Piagentini (R-19) Committee Member Keisha Dorsey (D-3) Committee Member Donna Purvis (D-5) Committee Member Paula McCraney (D-7) Committee Member Markus Winkler (D-17) Committee Member Robin Engel (R-22) Tuesday, May 19, 2020 3:00 PM Council Chambers Call to Order Chair Person Yates called the meeting to order at 3:02 p.m. Roll Call Chair Person Yates introduced the committee members and non-committee members present. A quorum was established. Committee Member Dorsey left the meeting at 3:30pm. NOTE: All committee members and non-committee members attended the meeting virtually. Present: 7- Chair Person David Yates (D-25), Vice Chair Anthony Piagentini (R-19), Committee Member Keisha Dorsey (D-3), Committee Member Donna L. Purvis (D-5), Committee Member Paula McCraney (D-7), Committee Member Markus Winkler (D-17), and Committee Member Robin Engel (R-22) Non-Committee Member(s) Council Member Barbara Sexton Smith (D-4) Support Staff Jason Fowler, Jefferson County Attorney's Office Clerk(s) Lisa Franklin Gray, Assistant Clerk Sonya Harward, Clerk Louisville Metro Government Page 1 Labor and Economic Development Action Summary - Final May 19, 2020 Committee Pending Legislation 1. R-061-20 A RESOLUTION PURSUANT TO THE CAPITAL AND OPERATING BUDGET ORDINANCES, APPROVING THE APPROPRIATION TO FUND THE FOLLOWING NONCOMPETITIVELY NEGOTIATED AMENDMENT TO PROFESSIONAL SERVICE CONTRACT FOR DEVELOP LOUISVILLE CONCERNING PROJECT MANAGEMENT FOR THE NEW DIXIE HIGHWAY (TIGER) PROJECT - (AECOM TECHNICAL SERVICES, INC. - $27,200 FOR A NEW NOT-TO-EXCEED AMOUNT OF $140,400.00). Sponsors:Primary David Yates (D-25) and Primary Rick Blackwell (D-12) Attachments: R-061-20 V.1 051420 - AECOM TECHNICAL SERVICES, INC. - $27,200.pdf Aecom_Technical_Services_-2nd_Amendment_Redacted.pdf Aecom_Technical_Services_-2nd_Amendment_Resolution.pdf A motion was made by Vice Chair Piagentini, seconded by Committee Member Purvis, that this Resolution be recommended for approval. The following spoke to this item: - Dirk Gowan, Public Works - Chair Person Yates The following was discussed: - John Callahan, formerly of Metro Government originally was the project manager for the Dixie Highway TIGER project. - John Callahan is now employed with AECOM Technical Services. - There have been some delays in the project however, it has had considerable progress. - This contract is to continue to have John Callahan's project management and oversight of the project through its completion as he continues to write reporting to the Federal Highways Communication System. - Chair Person Yates commented on the progress of the project and valuable contributions and project management that John Callahan has given. The motion carried by a voice vote and the Resolution was sent to the Consent Calendar. Louisville Metro Government Page 2 Labor and Economic Development Action Summary - Final May 19, 2020 Committee 2. R-064-20 A RESOLUTION PURSUANT TO THE CAPITAL AND OPERATING BUDGET ORDINANCES, APPROVING THE APPROPRIATION TO FUND THE FOLLOWING NONCOMPETITIVELY NEGOTIATED SOLE SOURCE CONTRACT FOR THE LIBRARY FOR BOOKS, AUDIO BOOKS, DATABASES AND OTHER LIBRARY MATERIALS FOR USE BY LIBRARY PATRONS - (EBSCO PUBLISHING, INC. - $50,000.00). Sponsors:Primary David Yates (D-25) Attachments: R-064-20 V.1 051420 - EBSCO PUBLISHING, INC. - $50,000.00.pdf R-064-20 ATTACH - EBSCO PUBLISHING, INC. - $50,000.00.pdf A motion was made by Vice Chair Piagentini, seconded by Committee Member Purvis, that this Resolution be recommended for approval. The following spoke to this item: - Lee Burchfield, Louisville Free Public Library - Chair Person Yates - Vice Chair Piagentini The following was discussed: - Ebsco products are some of the research databases made available for library patrons. - These research databases are used for educational and research purposes. - The databases are produced by the Ebsco Corporation thus, there isn't a secondary company that offers the service which is the reason for the sole source contract. - Chair Person Yates commented that the remainder of the legislation was for the library. He stated he had some questions on the amount of the final contract. He also asked if the contract amount covers one license for all the e-books for the library that everyone may purchase. - Lee Burchfield stated that the Ebsco products are for journal and magazine databases, encyclopedias, auto repair manuals, other reference materials, etc. He stated that previously patrons were unable to check out reference materials but now have access to this information through these databases. - Vice Chair Piagentini commented that he has used the Ebsco products before for technical use and it is very helpful. He asked Lee Burchfield if there is a plan to partially reopen the library and if so, what is the timeline? He further stated if not, like other cities that have alternative options like drive-by libraries, if there were alternative options for Louisville Metro? - Lee Burchfield stated that Metro Government departments have submitted proposals for a phase three reopening plan to the Administration a few weeks ago but no determination has been made at this time. He stated he expects some dialogue about those proposals in the near future. The motion carried by a voice vote and the Resolution was sent to the Consent Louisville Metro Government Page 3 Labor and Economic Development Action Summary - Final May 19, 2020 Committee Calendar. 3. R-065-20 A RESOLUTION PURSUANT TO THE CAPITAL AND OPERATING BUDGET ORDINANCES, APPROVING THE APPROPRIATION TO FUND THE FOLLOWING NONCOMPETITIVELY NEGOTIATED SOLE SOURCE CONTRACT FOR THE LIBRARY CONCERNING DATABASES FOR USE BY LIBRARY PATRONS - (INFO USA MARKETING, INC., - $35,000.00). Sponsors:Primary David Yates (D-25) Attachments: R-065-20 V.1 051420 - INFO USA MARKETING, INC., - $35,000.00.pdf R-065-20 ATTACH - INFO USA MARKETING, INC., - $35,000.00.pdf A motion was made by Vice Chair Piagentini, seconded by Committee Member McCraney, that this Resolution be recommended for approval. The following spoke to this item: - Lee Burchfield, Louisville Free Public Library - Chair Person Yates The following was discussed: - This contract is with Info USA which is a business database of companies throughout the United States. - This database allows the patron to search by geographic location, receipts per year and industry category. - This database is helpful for prospective business owners to search for other similar businesses or for customers in a particular market. - Chair Person Yates asked if Louisville Metro pays a flat fee for the license or is it a by use fee? - Lee Burchfield stated that the license fee is a flat fee with unlimited use. He further stated that there may be some printing caps on how much a patron can be print in a day. The motion carried by a voice vote and the Resolution was sent to the Consent Calendar. Louisville Metro Government Page 4 Labor and Economic Development Action Summary - Final May 19, 2020 Committee 4. R-066-20 A RESOLUTION PURSUANT TO THE CAPITAL AND OPERATING BUDGET ORDINANCES, APPROVING THE APPROPRIATION TO FUND THE FOLLOWING NONCOMPETITIVELY NEGOTIATED SOLE SOURCE CONTRACT FOR THE LIBRARY CONCERNING MAGAZINE AND NEWSPAPER SUBSCRIPTIONS AND OTHER MATERIALS FOR USE BY LIBRARY PATRONS - (OVERDRIVE, INC. - $1,000,000.00). Sponsors:Primary David Yates (D-25) Attachments: R-066-20 V.1 051420 - OVERDRIVE, INC. - $1,000,000.00.pdf R-066-20 ATTACH - OVERDRIVE, INC. - $1,000,000.00.pdf A motion was made by Committee Member Engel, seconded by Vice Chair Piagentini, that this Resolution be recommended for approval. The following spoke to this item: - Lee Burchfield, Louisville Free Public Library - Chair Person Yates - Vice Chair Piagentini - Committee Member McCraney The following was discussed: - Chair Person Yates commented that he had noticed this contract in several increased amounts. He asked if this contract was a by use contract or a flat fee contract and why the increase in amounts? - Lee Burchfield stated that Overdrive, Inc., is the vendor in which the library gets a vast majority of its e-books from that provides materials for adults and children. He stated that the increases that Chair Person Yates had referred to are due to the increased use and demand for digital items in our current state. He further stated that the purchase of digital items is more than Louisville Metro ordinarily spends due to societal circumstances. He also stated that this vendor offers a collection of databases and some of the items in the collection are circulated on a two year cycle and must be renewed. He stated that the three different licenses for this collection are all covered under this contract. He further stated that the type of licensure of the items is determined by the publisher of the item. - This contract allows the library to add additional and popular titles for digital use during the library's closure. - There has been an 80% increase of use from April 2019 to April 2020. - Chair Person Yates asked if this was a similar trend in other cities. - Lee Burchfield stated that he believes that Louisville Metro is spending less than cities of comparable size. He stated in his conversations with other library directors most have increased the purchase of digital materials as the physical libraries are not currently open. - Chair Person Yates asked for clarification on the amount and basic elements Louisville Metro Government Page 5 Labor and Economic Development Action Summary - Final May 19, 2020 Committee of the contract. - Lee Burchfield stated that the sole source contract is for the upcoming fiscal year and stated that some of the materials purchased would be in Louisville Metro's collection much longer than others depending on the popularity of the author or title. He stated for more detailed financial data he will request additional information about reimburseable expenses to be submitted to the committee from Ben Tipton, Office of Management and Budget. - Chair Person Yates asked for Lee Burchfield to please forward the additional information as soon as possible and stated if there needed to be a title update to the item or a change to language to notify him if the item needed to be placed in Old Business rather than Consent. - Vice Chair Piagentini asked if this contract is related the to libby app? Lee Burchfield stated that Vice Chair Piagentini was correct. He stated that there are two apps one is libby and the other is the Overdrive app in which patrons can download on smartphones, tablets, etc. - Vice Chair Piagentini stated that he has used the libby app very frequently in the last two months and that it is an excellent resource. He also stated that as this is the only medium at present for patrons to utilize while libraries are closed, he is not surprised about the increased cost for digital contracts due to Covid-19. - Committee Member McCraney asked if a cost comparison has been conducted as a result of financial impacts due to Covid-19 versus costs prior to Covid-19? She also asked if the titles compiled in the databases are a result of the library anticipating public interest or in response to it. - Lee Burchfield stated that previously Louisville Metro has spent upwards of $400,000 purchasing digital materials for the e-book collection, so this purchase represents a doubling of those purchases from previous years. He also stated that while Louisville Metro may not spend the full contract amount because of the not-to-exceed clause this amount give the Louisville Metro spending flexibility to purchase what is needed. He further stated that library professionals make educated choices for titles based on data, readership, stock management, etc. - Committee Member McCraney asked if the library does not reopen soon, would librarians be good at contact tracing? Lee Burchfield stated that he has a diverse staff and believes they would be good contact tracers. The motion carried by a voice vote and the Resolution was sent to the Consent Calendar. Special Discussion Louisville Metro Government Page 6 Labor and Economic Development Action Summary - Final May 19, 2020 Committee 5. ID 20-0509 Special Discussion: Louisville Forward Q1 2020 Update - Mary Ellen Wiederwohl Rebecca Fleischaker Attachments: 1Q2020 Council Report (April).pdf - Mary Ellen Weiderwohl and Rebecca Fleischaker, Louisville Forward, gave an update for the Quarterly Economic Development report as referenced in Ord. 17-19 The following spoke to this item: - Mary Ellen Weiderwohl, Louisville Forward - Rebecca Fleischaker, Economic Development - Chair Person Yates - Vice Chair Piagentini - Councilwoman Purvis - Committee Member Winkler - Council Member Sexton Smith The following was discussed: - Quarterly report is brief due to the economic impacts from Covid-19. - There were several projects closed during the first quarter of 2020 however, there is a considerable difference from those closed in 2019. - 11 projects closed in the first quarter of 2019 equaling over 700 jobs and a $97 million dollar investment. - However, the first quarter of 2020 was not similar to 2019's numbers. - There continues to be a show of strength in core areas of manufacturing, logistical, business services, and food & beverage. - Feedback from site selectors and businesses is that they are simply delaying due to Covid-19. - Several projects that were expected to close in the second quarter have now been deferred to the third quarter. - To date, 32 projects have closed representing over 3400 new jobs and $1.4 billion dollars in investment, which are not normal year numbers due to the economic downturn. - The current business pipeline is good, it is active and has 76 projects in varying stages, if they were to all close there would be over 9,000 new jobs. - The investment number is based on the types of projects that close such as manufacturing, logistical, etc. - The Metro Economic Development Team is to be commended for the work they have done since the outbreak of the pandemic. They have contacted over 800 businesses to provide emergency Q & A and Federal programs. - Economic Development has also created a small business resource through a partnership with LHOME to aid businesses similar to the METCO loan program. - Economic Development has also launched the temporary relief for restaurant reopenings in the last several weeks by aiding restaurants to add outdoor venues to comply with the State social distancing requirements. She stated that there is a web site that businesses may access to apply for assistance. Louisville Metro Government Page 7 Labor and Economic Development Action Summary - Final May 19, 2020 Committee She stated also stated that legislation has recently passed to allow businesses to apply for variances and street permits for outside dining. - The Economic Development has recently received a national award for the top economic development award from the Conway Magazine. - Louisville Metro economy at this time is entering a challenging time that will not be exited very soon. - There will be some bounce back to the economy as people practice social distancing and healthy measures. - The goal is to avoid a resurgence of the virus and returning into a shelter in place state, this is damaging to the economy because 70% of the US economy is service based. - Chair Person Yates asked if how Louisville Metro's economy is fairing in comparison to other comparable cities. Mary Ellen Weiderwohl stated that she believes that Kentucky's response and processes during Covid-19 make it attractive to new businesses. She stated that businesses will look at density and supply chain when seeking areas to relocate. She stated this is a time of reshoring in the economic development arena. Rebecca Fleischaker echoed Mary Ellen Weiderwohl's summary. Chair Person Yates also commended the Economic Development team for their recent award. - Committee Member Winkler asked what percentage of Louisville Metro economy either in terms of employment or GDP is directly levered in tourism? He also asked Mary Ellen Weiderwohl's forecast for tourism and business travel as Louisville Metro returns to normalcy over the next year. Mary Ellen Weiderwohl stated that she did not have the stats in front of her but would get them to the committee. She stated that at the beginning of the pandemic there was a list of probable cities that would experience impact and Louisville Metro was on that list. She also stated that specific areas of impact were tourism and manufacturing. She stated a better idea of the impact will be assessed when the quarterly unemployment rates for states are published on May 22. She stated that Louisville Tourism has also expressed a vast reduction in their budget based on hotel stays due to the pandemic. She stated that she believes that that industry will see a rebound as businesses reopen and people begin to travel after Covid-19. She stated that however air travel will be a slower process to rebound, while leisure travel would resurge before business travel. She further stated that with the utility and use of videoconferencing it may impact business travel going forward. - Vice Chair Piagentini commended Economic Development on their work and award thus far. He also stated he wanted to commend Economic Development's partnership with GLI. He also stated that for the future he would like to see a targeted reopening strategy including the Mayor and Governor because with the sweeping approach toward businesses, Kentucky now has the second highest unemployment rate since Covid-19. He further stated examples for targeting businesses by criteria. He asked as Louisville Metro moves forward after Covid-19, how can Metro Government aggressively recruit these larger coastal companies to expand in Kentucky? Mary Ellen Weiderwohl stated that the Economic Development team has had a running start in recruiting and is currently doing so at this time. Rebecca Fleischaker stated that the Economic Development team did not stop actively recruiting during the pandemic. She also stated that with the onset of the pandemic the utilization of virtual technology has provided a new avenue for businesses to Louisville Metro Government Page 8 Labor and Economic Development Action Summary - Final May 19, 2020 Committee see that they can work from anywhere. She further stated that she has been in talks with some coastal companies and there are several new projects upcoming. - Committee Member Purvis asked where members may search to view a list of the upcoming economic development projects like those listed in the quarterly report or could the list be sent to members? She also encouraged Rebecca Fleischaker to keep District 5 in mind when recruiting businesses. - Committee Member McCraney asked if Rebecca Fleischaker could identify some of the companies that have closed to date, as well as some that the Economic Development team is currently recruiting? Mary Ellen Weiderwohl stated that those projects currently in the pipeline being recruited could not be disclosed, but were similar core projects such as manufacturing and logistical, as well as goods & services and tech companies. She further stated that these jobs are also higher value jobs. Rebecca Fleischaker stated that customarily Economic Development does not release the name of a company unless or until the company releases it or if the company has received public funds. She also stated that she would first review the list of projects before releasing names. She further stated she would confirm with the Jefferson County Attorney's Office before disclosing company names and would be glad to follow up with the committee. Mary Ellen Weiderwohl stated that often there may be a delay due to the company waiting to announce publicly after the closing of the project. Committee Member McCraney also asked to receive the current closed list. Mary Ellen Weiderwohl stated that Rebecca Fleischaker would follow up with the committee.\ - Council Member Sexton Smith asked what response has Mary Ellen Weiderwohl received from Governor Beshear as it pertains to the GLI How to do Healthy at Work Regional report? Mary Ellen Weiderwohl stated that this report/plan is one of many that the Governor is considering as he continues to work with the Mayor and other states as the state moves forward in reopening. Adjournment Without objection, Chair Person Yates adjourned the meeting at 4:02 p.m. *NOTE: Items sent to the Consent Calendar or Old Business will be heard before the full Council at the Metro Council Meeting on May 28, 2020. Louisville Metro Government Page 9