Labor and Economic Development Committee

Agenda

1. Call to Order

   Chair Dorsey called the meeting to order at 3:03 p.m.

2. Roll Call

   Chair Dorsey introduced the committee members and non-committee members present. A quorum was established. Note: All committee members and non-committee members present attended virtually, except for Chair Dorsey, Council President James, Committee Member Kramer, and Vice Chair Engel, who attended in Chambers.

3. Special Discussion
4. 1. Downtown Tourism - Jeff O'Brien, Louisville Forward
   Discussion Item

   Jeff O'Brien, Louisville Forward, gave a presentation (see attached). The following spoke to this item: - Jeff O'Brien - Committee Member Kramer - Vice Chair Engel - Committee Member Mulvihill The following was discussed: - An early quarterly update was given -- in the first quarter of 2022, Louisville Forward shows approximately $397M of investment and approximately 1,500 new job positions -- in comparison to 2021, $946M in planned and announced investment and 4,000 new job positions - Questions were asked regarding whether there have been industry studies done specific to Louisville to show what the industry will look like when remote employees come back into the work place -- a study has not been done but Louisville Forward is watching the trends and how employees are returning to the work place to stay on top of any changes in the downtown community - Questions were asked regarding whether Louisville Forward is anticipating that the closed restaurants downtown plan to reopen in the future -- Downtown Louisville is gaining momentum and activity generating businesses will experience more activity flow once there are more people coming back downtown -- more specific examples were given - Questions were asked regarding Louisville Gardens -- there are currently several development opportunities for this arena, at this time there aren't any submissions, but Louisville Forward is hopeful to have the Louisville Gardens reinvigorated soon -- this property is not being discussed with the Cordish Company - Questions were asked regarding Fourth Street Live! -- Louisville Forward is having discussions with the Cordish Company to figure out what can be done to invite more tenants into the complex to fill the current vacant spaces - Concerns were expressed regarding the Cordish Company not fulfilling their commitments - Questions were asked regarding whether Louisville has an incentive in place with the Cordish Company -- the incentives that were in place originally have expired - Questions were asked regarding the different Downtown Louisville partnerships with Louisville Forward -- Louisville Forward and their partners work together to promote the city as a whole but are currently focused on Downtown Louisville as it is Louisville's main attraction for tourism

5. Pending Legislation
6. 2. A RESOLUTION PURSUANT TO THE CAPITAL AND OPERATING BUDGET ORDINANCES APPROVING THE APPROPRIATION TO FUND THE FOLLOWING NONCOMPETITIVELY NEGOTIATED PROFESSIONAL SERVICE CONTRACT FOR OFFICE OF MANAGEMENT AND BUDGET CONCERNING CONSULTATION FOR DEVELOPMENT AND IMPLEMENTATION OF LOUISVILLE’S AMERICAN RESCUE PLAN - (MARGARET HANDMAKER - $96,875.00).
   Resolution
   Action: recommended for approval Passed

   A motion was made by Committee Member Holton Stewart, seconded by Committee Member Kramer, that this Resolution be recommended for approval. The following spoke to this item: - Monica Harmon, Office of Management and Budget ("OMB") - Committee Member Kramer - Chair Dorsey - Vice Chair Engel The following was discussed: - This contract is for Margaret Handmaker's professional services, specifically relating to the American Rescue Plan ("ARP") -- this contract has been extended to the end of the current calendar year for the same monthly rate basis - The work that Margaret Handmaker is doing takes a particular knowledge and understanding of Louisville -- it is difficult to bid out a contract like this because of the intricacies this position requires - Questions were asked regarding the total compensation Margaret Handmaker has received since she has been on this project -- Margaret Handmaker has been on this project since May 2021 and to-date has been compensated $125K - Clarification was asked regarding whether the contract amount of $96,875.00 would last through the end of December 2022 and if this was a not-to-exceed amount -- this was confirmed by OMB - Questions were asked regarding whether the contract was reimbursement based -- Margaret Handmaker invoices OMB for her work performance on a monthly basis - Questions were asked regarding whether the invoiced amount was by hourly rate -- it is a flat monthly rate - Questions were asked regarding whether the contract amount is consistent with other cities and/or how this amount was configured -- the rate was compared to a director's position and added other benefits that aren't being used as a total compensation package -- OMB did not look at other cities when determining the contract amount as Louisville was ahead of the curve for this project - Questions were asked regarding what the compensation analysis was for other cities whom are doing this same work across the board -- OMB does not have this information as they are comparing it to a director's pay The motion carried by a voice vote and the Resolution was sent to the Consent Calendar.

7. 3. A RESOLUTION RATIFYING AND APPROVING A COLLECTIVE BARGAINING AGREEMENT (MARCH 23, 2022 - JUNE 30, 2023) RELATING TO WAGES, HOURS, AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT BETWEEN THE LOUISVILLE/ JEFFERSON COUNTY METRO GOVERNMENT AND LOUISVILLE PROFESSIONAL FIREFIGHTERS ASSOCIATION, LOCAL UNION 345, IAFF, AFL-CIO-CLC.
   Resolution
   Action: recommended for approval Passed

   A motion was made by Committee Member Kramer, seconded by Vice Chair Engel, that this Resolution be recommended for approval. The following spoke to this item: - Monica Harmon, Office of Management and Budget ("OMB") - Chair Dorsey - Penny Bland, Metro Human Resources - Brian O'Neill, Louisville Professional Firefighters Association, Local Union 345 - Vice Chair Engel - Committee Member Mulvihill The following was discussed: - This contract has approximately 493 positions -- the specific position titles were provided - This contract is a two-year contract for fiscal years 2022-23 -- Cost-of-Living Adjustment ("COLA"), steps and longevity, and certification pay is included in this contract - The rate of increase for fiscal year 2021-22 is a six percent increase that started July 1, 2021 -- a four percent increase was effective on April 1, 2022 and will extend until June 30, 2023 -- there is a zero percent COLA for fiscal year 2023 - Examples of other economic items listed in this contract were provided - The total cost of this contact is $56.9M without fringe benefits and $88M with fringe benefits - The contract was approved by the union membership with a 65 percent majority vote - Questions were asked regarding Louisville's pay to firefighters in comparison to other cities -- Louisville compares to peer cities in the region and is in the top three cities for firefighter compensation - Questions were asked regarding Louisville Public Safety retention -- OMB does not have the exact numbers at this time but does know that the Louisville Professional Firefighters Association is in the lower rate compared to Louisville's other Public Safety agencies -- the loss of pension for anyone hired after 2013 has caused an increase in retention - In terms of recruitment compared to the Louisville Metro Police Department the Louisville Professional Firefighters Association is doing better but historically the Louisville Professional Firefighters Association would receive approximately 2,000-3,000 applicants but now are receiving approximately a couple hundred applicants - Questions were asked regarding the barriers for recruitment -- neighboring cities pay more in comparison to Louisville, and Lexington still has a pension benefit available -- examples of neighboring states that offer state pension benefits were provided - Questions were asked regarding whether Metro is losing employees to other fire departments in the public sector or the private sector -- it is about 50/50, some employees go to other neighboring cities and states and some employees leave to go to the private sector - Questions were asked regarding whether there has been an effort made by state government to change the pension benefits back to the way it was -- House Bill 135 was introduced in January 2022 in an attempt to change the retirement benefits for members participating in the State Police Retirement System (SPRS) or in a hazardous position in either the Kentucky Employees Retirement System (KERS) or County Employees Retirement System (CERS) who were hired after January 1, 2014, but before January 1, 2023 The motion carried by a voice vote and the Resolution was sent to the Consent Calendar.

8. 4. AN RESOLUTION RATIFYING AND APPROVING A COLLECTIVE BARGAINING AGREEMENT (JULY 1, 2021 THROUGH JUNE 30, 2023) RELATING TO WAGES, HOURS, AND TERMS AND CONDITIONS OF EMPLOYMENT BETWEEN THE LOUISVILLE METRO GOVERNMENT AND THE INDIANA/KENTUCKY/OHIO REGIONAL COUNCIL OF CARPENTERS (“IKORCC”), WHICH IS THE SUCCESSOR TO THE CARPENTERS INDUSTRIAL COUNCIL FOR EMPLOYEES OF CODES AND REGULATIONS DEPARTMENT, DEVELOP LOUISVILLE AND SOLID WASTE MANAGEMENT SERVICES DIVISION.
   Resolution
   Action: recommended for approval Passed

   A motion was made by Vice Chair Engel, seconded by Committee Member Holton Stewart, that this Resolution be recommended for approval. The following spoke to this item: - Monica Harmon, Office of Management and Budget ("OMB") - Chair Dorsey - Committee Member Holton Stewart - Penny Bland, Metro Human Resources The following was discussed: - This contract agreement covers 82 job positions - The two-year contract extension covers fiscal years 2022-23 -- Cost-of-Living Adjustment (COLA), steps and longevity, as well as bringing members up to a livable wage of $15 hourly - The total contract amount is $6.7M without fringe benefits and $9M with fringe benefits - Questions were asked regarding the shorter duration of this contract compared to other contracts brought forth to the Metro Council -- this shorter contract term will allow the union to negotiate a contract with the new Administration that will be in place in June 2023 - Questions were asked regarding the average hourly wage for positions in this sector -- OMB does not have this information at this time - Questions were asked regarding what the lowest paid position is within this contract -- the Administrative Clerk is a full-time position at the $15 hourly wage The motion carried by a voice vote and the Resolution was sent to the Consent Calendar.

9. 5. AN ORDINANCE OF THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT, KENTUCKY, AUTHORIZING THE ISSUANCE OF ITS INDUSTRIAL BUILDING REVENUE BONDS (VESTA DERBY OAKS PROJECT) IN ONE OR MORE SERIES OR SUBSERIES IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $46,000,000 FOR THE PURPOSES OF (A) PAYING ALL OR A PORTION OF THE COSTS OF ACQUISITION, CONSTRUCTION, EQUIPPING, AND INSTALLATION OF 418 MULTI-FAMILY AFFORDABLE HOUSING UNITS AND THE SITES ON WHICH THEY ARE LOCATED, AND (B) PAYING COSTS OF ISSUANCE OF THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE, LOAN AGREEMENT, BOND PLACEMENT AGREEMENT, LAND USE RESTRICTION AGREEMENT, TAX COMPLIANCE AGREEMENT, AND OTHER AGREEMENTS; AUTHORIZING AND APPROVING CERTAIN OTHER MATTERS, INCLUDING THE EXECUTION OF RELATED DOCUMENTS, IN CONNECTION WITH THE SALE AND ISSUANCE OF THE BONDS.
   Ordinance
   Action: recommended for approval Passed

   A motion was made by Vice Chair Engel, seconded by Chair Dorsey, that this Ordinance be recommended for approval. The following spoke to this item: - Jason Woodall, Louisville Forward - John Egan, Frost Brown Todd Attorneys LLC - Chair Dorsey - Laura Ferguson, Jefferson County Attorney's Office - Chris Walker, Patriot Services Group - Committee Member Kramer The following was discussed: - This is a tax-exempt industrial revenue bond that consists of $46M for the city to issue - Page 9 of the Ordinance was referenced to state that Louisville Metro Government is not obligated to repay the bonds -- the developer will be responsible to repay the bonds - Patriot Services Group owns and operates over 5,000 affordable housing units located across the Southeast United States -- more examples of the types of properties the Patriot Services Group handles were provided - Questions were asked regarding the special caveat that was added to this Ordinance in regards to property tax -- page 3 of the Ordinance was referenced where a WHERAS clause was added -- more information regarding this was provided - Questions were asked regarding whether the soon-to-be Vesta Derby Oaks property is currently owned by the Patriot Services Group -- this property is not owned by Patriot Services Group at this time but is something they are attempting to finalize - Questions were asked regarding whether this property would require any zoning changes or plans to increase the density -- the density would not be increased, the site will be purchased as is The motion carried by the following vote and the Ordinance was sent to the Consent Calendar:

10. Adjournment

    Without objection, Chair Dorsey adjourned the meeting at 4:00 p.m.

11. Note: Items sent to the Consent Calendar or Old Business will be heard before the full Council at the Metro Council meeting on April 28, 2022.
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16. Clerk(s)

    Olivia Bennett, Assistant Clerk Sonya Harward, Clerk

17. Support Staff

    Laura Ferguson, Jefferson County Attorney's Office Hollie Hopkins, Jefferson County Attorney's Office

18. Non-Committee Member(s)

    Council Member Angela Bowens (D-1) and Council President David James (D-6)