Travis County Commissioners Court
September 4, 2007
Item 42
We've returned from executive session where we discussed the following items: number 42 is the matter involving a request for financial incentives from project diamondback, and we were not able to discuss this matter with representatives from the greater Austin chamber of commerce or the company. They are here now and court members may have questions. If we could get y'all just to come forward. We've got six chairs. Get real comfortable and probably would help to go ahead and get your names and then we'll take the questions.
>> I am steve darnell, the vice-president of finance for the project.
>> employ afternoon, judge, court, my name is jeremy martin, vice-president of government relations for the Austin chamber of commerce.
>> good afternoon, daniel kay with an gentlemen lieu economics.
>> and I'm dave porter, senior vice-president, economic development for the Austin chamber.
>> thank y'all for coming by. We thought we may get to you at 2:15 or 2:30. We were hopefully optimistic about that. Questions?
>> yes, judge, I have a couple of them, just for starters. I know with go through the process and I'm quite sure they'll be defined a little more. But just generally looking at this, we have really been interested -- we've kind of joined forces with the greater Austin chamber as far as looking for opportunities to not only create jobs, but also create an atmosphere of job retention, even with our involvement with opportunity Austin and a whole bunch of other things that we have tried to could to make sure that we do create and that the folks that are coming here to create jobs, but job retention also. But within that we're constantly stressed that we wanted involvement in the community whereby you have persons that are considered economically disadvantaged, poor persons in this community. We want to make sure that they have an opportunity to advance their employment opportunities as companies come here and locate. We want to make sure that that role is still intact. Now, looking at the backup and looking at some of the things that we have been exposed to, there is some numbers that have been indicated there as far as looking at some of the opportunities that have been granted to associate degree persons, da, da, da. However, I want to make sure that the window or the door will be open for job training aspect to the point where you can supply the needs that I have just laid out to make sure that those needs are met. So can you tell me what type of effort will you be making as far as ensuring that the economically disadvantaged in this county will have an opportunity for job training, job retention as these jobs are being created? Can someone answer that question for me, please?
>> so, this is a manufacturing project.
>> I understand.
>> we are located in the desired economic development zone of the metro area. I think some of the other projects that maybe you've seen in Austin have been more on the engineering side. Our business is a cost sensitive business. We will not be able to employ only engineers on the manufacturing line. Actually, the key to being successful in this manufacturing endeavor is low cost manufacturing.
>> can you describe what you mean by that? This is being replayed and they hear terminology sometimes and sometimes folks say, well, what do they mean by that, Commissioner? I'll let you answer that.
>> simply that the product that we're producing needs to achieve low costs in order to be successful in the market. And that means that we have to employ the right types of folks on the manufacturing line to allow us to achieve those costs. We cannot employ engineers on the manufacturing line and achieve those lower costs. We will have to have a broad range of employees and look at employing a broad range of employees to achieve our business plan. Does that make sense?
>> yes, it does. But I want to make sure that from the standpoint of the economically disadvantaged. I still need to hear from you what are the opportunities that would be availed to them as far as entry into your operation?
>> so we will have to have an active human resources program that will include reaching to you the community to find the employees that we will need for the manufacturing facility. As you can imagine, we're relatively small company right now, but we are putting in a human resources organization to address that challenge and reaching out to some of the community which I can envision would include reaching out to the community colleges and the high schools in order to build a pipeline of talent at that entry level that we will need for the manufacturing facility.
>> okay. That basically gets you there on that aspect. Now, in the past everybody is unique I guess that come here to look for our role, the county, as far as what we're dealing with here. And I know that we'll probably be working on some things later on. What I need to also find out from you if you can possibly help me out, can you tell me will you actually involve -- just like an example we have the greater Austin chamber of commerce here. They're not the only chamber of commerce here in town. We have other chamber of commerces that have been very much involved in bringing economic balance as much as possible here to this community. We have several. My question to you is -- and I'm not knocking you, greater Austin chamber. I'm not here to do that. But it's more inclusive than just the greater Austin chamber. I want to make sure that the doors are left open for the other chambers that are here located and that they have a chance to participate in this process.
>> Commissioner, one of the steps in the incentive process from the city of Austin is meeting with the minority chamber, both the hispanic chamber and the african-american chamber. And that is going to take place here very soon. And so that is a requirement that any company that is going through the incentive process has to meet with the minority chambers to look at pro ciewment opportunities -- procurement opportunities as well as employment opportunities. So that has not happened yet, but it will take place very soon.
>> I want to keep that on the radar screen.
>> it's very important.
>> yes, it is. That's why I posed the question. Now, finally, and like I said, as we go through this process, there will be other more detailed questions that will come from me, I know, because I'll have some. But finally, let me just suggest this or say this: we have looked at the whole array of opportunities here in this community, but again job training, job creation and job retention is very critical to the economic prosperity of this region and also here in Travis County. So this is something that I think we all need to look at and aspire to. And again, I have other questions later on that will probably crop up as we go through the process, but I want to make sure that that is laid out as far as the groundwork that I think need to be stated. So you at least know where I'm coming from. And so thank you very much for your time.
>> thank you.
>> I have a couple of questions. Looking at some of the specifics, and I don't know how deeply y'all have the statistics, but looking at the statistics I understand is roughly 187 jobs created.
>> roughly.
>> and of those looking as it appears from the break down that only 14 of those would be someone with a high school diploma or g.e.d. Alone.
>> I think the bulk of the employment falls kind of in between high school and a college graduate level individual. It's not been entirely defined, but the folks that --
>> the positions that are identified are associate degrees, and that's good.
>> that's part of the process of going through the training cycle of determining whether that would be a training program that's with a.c.c. And they would end up with an associate's degree. I would not say it's not entirely defined and it may be sma tha some of the folks could be just high school graduates as well.
>> and then although this specifically
>> [inaudible - no mic]. Looking at our own policies in regards to rebates and abatements, are y'all contemplating (indiscernible) care for employees in.
>> I think being a company as small as we are, we have not addressed that.
>> frankly, we don't.
>> [inaudible - no mic].
>> I do think that we recognize that we have to have competitive benefits in order to attract the employees that we're going to need to hire.
>> are y'all contemplating tuition reimbursement or reimbursement for educational training or employees to train up?
>> yes.
>>
>> [inaudible - no mic].
>> that one is definitely on the table even at this early date.
>> are there any other elements y'all are looking at to encourage upward mobility within your workforce as far as the associate's degree level, to train up to master's degree level or any degree in.
>> that is on the table. One of the things that we've dean recently was hired a vice-president of human resources, and he is looking at all of those issues related to training and tuition reimbursement.
>> have any efforts or programs in the work to look at ways to foster and increase science education --
>> [inaudible - no mic]. This is really important for us. It's important for to us grow that workforce from the little kid up into those adults who will work in the field. Science education is sorely lacking in our state. Moim moim.
>> [inaudible - no mic]. Is there a program in place or being developed
>> [ inaudible ] and the associate's degree realm?
>> that is a very good point. I would say we're in the early stages of looking at that. One of the primary areas that we've looked at here recently is just the support for this type of technology at the university level. But it will quickly become a broader issue at some of the lower educational levels. We would like to see widespread support for what we are doing at all education levels.
>> I would very much like to see
>> [inaudible - no mic].
>> I think wreer very interested in achieving that same type of industry in this area.
>> those are my questions at this point. I'm certain that I will get much more specific.
>> any other questions or comments?
>> we're always look ing it for partners for the mentoring of kids in the schools as well as maybe finding partners to help us with other areas where we need to help children somehow to stay in school. Are there -- are those possibilities possible with y'all in.
>> I would say that they are possible. One of the things that we've talked about in terms of at least a policy to encourage employees is allowing time off for community volunteer work. And as we expand, that's certainly something we would look to the community or to the county to work on.
>> so we could raise that with y'all at some point?
>> yes.
>> okay. I just think that the dropout rate is just atrociously bad. And something needs to continue to be done about that. Always looking for partners. Thanks.
>> you were hoping for a final decision by I guess the city and the county by when?
>> well, the city is basically written a commitment letter. The state we're working on finalizing the deal from the state of Texas and so that's where we're here today to kind of close the loop on all the entities.
>> how long after the letter does the city normally have a contract in place?
>> that's going to -- after that it's going to go to council later this month for the public action item. And then shortly after that the attorneys will begin working on the agreement.
>> 60 days? For the full cycle? Including lawyers?
>> may be.
>> I was feeling pretty good until you mentioned lawyers. Mary etta and hers need to be fair.
>> they're involved in everything.
>> [ laughter ]
>> I move that we indicate the county's favorable inclination to support this program, authorize the county judge to work with legal and the county financial staff to put in place an appropriate draft contract for presentation and further negotiation to the Commissioners court.
>> second that.
>> asap, which probably means two to three week. We're going through the budget markup now. You're probably talking about two, three weeks, I would say.
>> I'll second that, judge, but also I want to make sure that those kind of questions that haven't really been discussed today have an opportunity to percolate up to the top for your answers and I guess during this process because there are some areas that I think we need to put our arms around and squeeze some good answers out so the community can be also beneficiary of this particular advent and this particular issue. So that's my concern. So there will somebody other questions coming as I stated to you earlier. So just be on guard.
>> certainly I'm available to answer questions and for additional meetings.
>> exactly.
>> I'll make myself available.
>> thank you.
>> we'll stay in touch too and try to get it done as soon as possible.
>> thank you.
>> any more discussion? All in favor? That passes by unanimous vote. Thank y'all for your patience again.
>> thank you.
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Last Modified:
Wednesday, September 5, 2007, 18:30 AM