Labor and Economic Development Committee

601 W. Jefferson Street Louisville Metro Government Louisville, KY 40202 Action Summary - Final Labor and Economic Development Committee Chair 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, November 10, 2020 3:00 PM Council Chambers Call to Order Chair Person Yates called the meeting to order at 3:06 p.m. Roll Call Chair Person Yates introduced the committee members and non-committee members present. A quorum was established. NOTE: All committee members and non-committee members attended the meeting virtually, except Vice Chair Piagentini and Council Member Coan, who attended in Chambers. Present: 7- Chair 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), Council Member Brandon Coan (D-8), Council Member Bill Hollander (D-9), Council Member Nicole George (D-21) Support Staff Jason Fowler, Jefferson County Attorney's Office Paul Rutherford, Jefferson County Attorney's Office Natalie Johnson, 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 November 10, 2020 Committee Pending Legislation 1. R-137-20 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. - $8,000 FOR A NEW NOT-TO-EXCEED AMOUNT OF $148,400.00). Sponsors:Primary David Yates (D-25) Attachments: R-137-20 V.1 110520 - AECOM TECHNICAL SERVICES, INC. - $8,000 - NEW NOT-TO-EXCEED AMOUNT OF $148,400.00).pdf DocuSign_AECOM_Technical_Services_Amendment_.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 the item: - Chair Person Yates - Jeff O'Brien, Louisville Forward The following was discussed: - This legislation is an extension of the current Dixie Highway TIGER project. - The project is mostly complete, however, for now work is ongoing. - Due to COVID-19 some work was delayed, this legislation extends the contract until January 2021. - This is the second extension due to needed telecommunications and Louisville Gas & Electric work that was delayed due to weather conditions. The motion carried by a voice vote and the Resolution was sent to the Consent Calendar. 2. R-142-20 A RESOLUTION AUTHORIZING THE MAYOR TO ENTER INTO AN AGREEMENT AND RECEIVE A STIPEND FROM THE KENTUCKY REGIONAL PLANNING AND DEVELOPMENT AGENCY IN THE AMOUNT OF $130,000 TO SUPPORT TECHNICAL OR PROFESSIONAL PLANNING/DATA COLLECTION SERVICES AS INDICATED IN THE KENTUCKY REGIONAL PLANNING AND DEVELOPMENT AGENCY'S FISCAL YEAR 2021 UNIFIED PLANNING WORK PROGRAM. Sponsors:Primary Brandon Coan (D-8) Attachments: R-142-20 V.1 110520 - FISCAL YEAR 2021 UNIFIED PLANNING WORK PROGRAM.pdf A motion was made by Committee Member Winkler, seconded by Vice Chair Piagentini, that this Resolution be recommended for approval. Louisville Metro Government Page 2 Labor and Economic Development Action Summary - Final November 10, 2020 Committee The following spoke to the item: - Chair Person Yates - Council Member Coan - Jeff O'Brien, Louisville Forward The following was discussed: - This legislation allows Louisville Metro to receive monies from the Kentucky Regional Planning and Development Agency (KIPDA) for traffic count data throughout the year. - Council Member Coan is the primary sponsor for the legislation by virtue of being Committee Chair for the Public Works Committee, in which the legislation was originally assigned. - This is a routine reauthorization. The motion carried by a voice vote and the Resolution was sent to the Consent Calendar. 3. R-147-20 A RESOLUTION APPROVING THE GRANTING OF LOCAL INCENTIVES TO PACKAGING TECHNOLOGY GROUP, INC. AND ANY SUBSEQUENT ASSIGNEES OR APPROVED AFFILIATES THEREOF PURSUANT TO KRS CHAPTER 154, SUBCHAPTER 32. Sponsors:Primary David Yates (D-25) and Primary Anthony Piagentini (R-19) Attachments: R-147-20 V.1 110520 LOCAL INCENTIVES -PACKAGING TECHNOLOGY GROUP, INC..pdf Packaging Technology Group, Inc. - Louisville Support letter.pdf Packaging Technology Group, Inc. - Prelimianry Board Summary- December 12, 2019.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 the item: - Chair Person Yates - Vice Chair Piagentini - Committee Member Dorsey - Alex Mercer, Louisville Forward The following was discussed: - Packaging Technology Group is a Boston based designer and manufacturer of recyclable shipping and packaging for pharmaceutical clients. - Louisville Metro was chosen as the first facility site outside of Massachusetts. - Packaging Technology Group plans to hire 40 full-time employees at an hourly wage of $21 an hour. - The company's investment is approximately $1.9 million dollars into the facility. - The facility will be located in District 13 and is expected to be a good Louisville Metro Government Page 3 Labor and Economic Development Action Summary - Final November 10, 2020 Committee long-term partner in the community. - There were questions regarding Louisville Metro only providing 1 percent incentive as opposed to the customary 1.25 percent. - There was a discussion regarding the State providing 3 percent toward the incentives, while Louisville Metro provides 1 percent in this project. - There was a discussion regarding the progress and success in attracting new vendors to Louisville Metro. - There were questions regarding demographic standards attached to incentive projects. - There was a discussion regarding minimum demographic standards in relation to incentive projects that are recommended although not required. The motion carried by a voice vote and the Resolution was sent to the Consent Calendar. 4. ID 20-1499 PUBLIC HEARING PURSUANT TO KRS 65.7051 FOR THE 422 eMAIN DEVELOPMENT AREA Attachments: Public Hearing Speakers O-507-20 V.1 110520 THE 422 E-MAIN DEVELOPMENT AREA.pdf O-507-20 ATTACH - Exhibit A - Development Plan.pdf O-507-20 ATTACH - Exhibit B - Map.pdf O-507-20 ATTACH - Exhibit C - Agreement.pdf Chair Person Yates opened the Public Hearing for the 422 eMain Development Area. The following spoke to the item: - Chair Person Yates - Vice Chair Piagentini - Council Member Sexton Smith - Committee Member Winkler - Kevin Cogan, Jefferson Development Group The following was discussed: - There was a discussion regarding the project being an important residential development for the downtown Louisville Metro urban core. - This project is located near the Angel's Envy Distillery. - The project will have a multi-use design with retail space on the ground floor along with an appropriate streetscape approach. - The aesthetic amenities such as windows, landscaping, lighting, water, and sewer have been appropriately addressed to code regulations. - This project is one of the largest upscale multi-family residential units in downtown Louisville Metro with 343 residential units and approximately 450 parking spaces. - There were questions regarding the timeline for moving forward. - The overall objective is to begin working with the development team in the coming weeks and moving toward construction. Louisville Metro Government Page 4 Labor and Economic Development Action Summary - Final November 10, 2020 Committee Chair Person Yates closed the Public Hearing for the 422 eMain Development Area. 5. O-507-20 AN ORDINANCE ESTABLISHING A DEVELOPMENT AREA PURSUANT TO PROVISIONS OF KRS 65.7041- 65.7083 TO BE KNOWN AS THE 422 E-MAIN DEVELOPMENT AREA, DESIGNATING THE METRO DEVELOPMENT AUTHORITY, INC. AS AN "AGENCY", ADOPTING A DEVELOPMENT PLAN, APPROVING ENTERING INTO A LOCAL PARTICIPATION AGREEMENT, AUTHORIZING THE PAYMENT OF THE "RELEASED AMOUNT" PURSUANT TO THE TERMS AND CONDITIONS OF THE LOCAL PARTICIPATION AGREEMENT, REQUIRING THE SUBMISSION OF REGULAR REPORTS TO LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT AND AUTHORIZING THE EXECUTION AND DELIVERY OF ANY OTHER DOCUMENTS AND THE TAKING OF ANY OTHER ACTIONS NECESSARY TO ACCOMPLISH THE PURPOSES AUTHORIZED BY THIS ORDINANCE (AS AMENDED). Sponsors:Primary Barbara Sexton Smith (D-4) Attachments: O-507-20 V.2 CAM 111020 THE 422 E-MAIN DEVELOPMENT AREA.pdf O-507-20 V.2 CAM 111020 - ATTACH - EXHIBIT A - Development Plan.pdf O-507-20 V.1 110520 THE 422 E-MAIN DEVELOPMENT AREA.pdf O-507-20 ATTACH - EXHIBIT A - Development Plan.pdf O-507-20 ATTACH - Exhibit B - Map.pdf O-507-20 ATTACH - EXHIBIT C - Agreement.pdf Term Sheet - 422 e Main Street.pdf A motion was made by Committee Member Dorsey, seconded by Committee Member Winkler, that this Ordinance be recommended for approval. The following spoke to the item: - Chair Person Yates - Vice Chair Piagentini - Committee Member Dorsey - Council Member Sexton Smith - Stephanie Kertis, Louisville Forward The following was discussed: - Council Member Sexton Smith requested a Committee Member to proffer an amendment on the legislation. - The amendment will bring the development plan into better compliance with Louisville Metro Code of Ordinances (LMCO) 37.75 in regard to Fair Labor Standards. - The amendment will also bring the development plan into better compliance with State law with respect to Fair Labor Standards. - There was a discussion regarding the inactive use of the property in the past Louisville Metro Government Page 5 Labor and Economic Development Action Summary - Final November 10, 2020 Committee 20 years. - This is a welcomed and celebrated project that includes a percentage of low-income affordable housing, which will be phased as occupancy increases. - The project has proceeded through the Public Notice process with adjacent businesses and neighbors. - Due to the development area's present condition and use, the potential revenue is not feasible to underwrite the proposed improvements. - The Tax Increment Funding (TIF) mechanism is the most adequate source for incentives toward the needed project and improvements. - The improvements cannot be facilitated solely with private investment funds. - The project is expected to have $80 million in private investments with $65 million of new investments toward hard costs. - The Ad Valorem Tax increase on the TIF will have an 80/20 split for a time frame of no greater than 25 years and a cap to the developer of no more than $7,644,184. - There was a discussion regarding the 20 percent tax increases that Louisville Metro will receive as the property investment increases. - There was a discussion regarding the project being an excellent way to incentivize investment in the community. A motion was made by Committee Member Winkler, seconded by Vice Chair Piagentini, that this Ordinance be amended. The motion to amend carried by a voice vote. The motion to recommend for approval carried by the following vote and the Ordinance was sent to Old Business: Yes: 7- Yates, Piagentini, Dorsey, Purvis, McCraney, Winkler, and Engel 6. O-512-20 AN ORDINANCE REQUIRING THE IMPLEMENTATION OF PAID PARENTAL LEAVE. Sponsors:Primary Brandon Coan (D-8) and Additional David Yates (D-25) Attachments: O-512-20 V.1 110520 PARENTAL LEAVE.pdf This item was held in Committee. 7. R-133-20 A RESOLUTION RATIFYING AND APPROVING A COLLECTIVE BARGAINING AGREEMENT (FROM THE DATE OF ITS APPROVAL THROUGH JUNE 30, 2023) BETWEEN LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT AND THE AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, AFL-CIO, LOCAL 2629 (“AFSCME”) RELATING TO WAGES, HOURS, AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT OF ITS CIVILIAN SUPERVISORY EMPLOYEES IN LOUISVILLE METRO CORRECTIONS DEPARTMENT. Sponsors:Primary David Yates (D-25) Attachments: R-133-20 V.1 110520 COLLECTIVE BARGAINING AGREEMENT - AFL-CIO, LOCAL 2629 (“AFSCME”).pdf R-133-20 ATTACH - AFSCME Corrections Supervisors CBA 10.21.2020 thru 6.30.2023 Executed.pdf Louisville Metro Government Page 6 Labor and Economic Development Action Summary - Final November 10, 2020 Committee A motion was made by Vice Chair Piagentini, seconded by Committee Member Winkler, that this Resolution be recommended for approval. The following spoke to the item: - Chair Person Yates - Vice Chair Piagentini - Committee Member Dorsey - Council Member Coan - Council Member Sexton Smith - Aaron Jackson, Office of Management and Budget - Daniel Frockt, Office of Management and Budget The following was discussed: - This agreement covers approximately nine positions designated as Corrections Supervisor 1. - The agreement is a 5-year contract covering FY19-FY23. - The agreement includes Cost of Living Adjustments (COLA) and STEP wage increases. - The agreement does not provide wage increases for FY19-FY20. - The agreement provides a two percent wage increase for FY21-FY23. - This agreement includes a one-time lump sum payment of $1,000 to each member. - The total cost of the project is approximately $1.9 million without fringe benefits and approximately $2.8 million with fringe benefits. - There was a discussion regarding Article 12 (1) of the noted discipline protocols in the contract that limits the length of time certain discipline can be considered in respect to subsequent disciplinary infractions. - There was a discussion regarding the differences and similarities between the Police Union contract and the Corrections contract. - There was a discussion regarding adding the option of parental leave for all Louisville Metro employees. - There was a discussion concerning labor contracts being negotiated, voted on, and approved prior to the contract expiration. - There was a discussion regarding labor contracts being negotiated with its primary consideration being to its employees. - There was a request for a document similar to that provided by the Office of Management and Budget on the Police Union contract. - There were several questions regarding a list of proposed contracts with upcoming expiration dates available in a public domain. - There was a discussion regarding a list of contracts and their expirations available on the Louisvilleky.gov web site under the Office of Management and Budget tab. The motion carried by the following vote and the Ordinance was sent to Old Business: Yes: 5- Yates, Piagentini, McCraney, Winkler, and Engel Present: 2- Dorsey, and Purvis Louisville Metro Government Page 7 Labor and Economic Development Action Summary - Final November 10, 2020 Committee Adjournment Without objection, Chair Person Yates adjourned the meeting at 4:09 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 November 19, 2020. Louisville Metro Government Page 8