Travis County Commissioners Court
February 7, 2012 (Agenda)
Item 3
Item number 3, consider and take appropriate action on request for resolution nominating bazaar voice, inc., as an enterprise zone program project.
as part of the backup, I went and pulled the golfsmith resolution and agreement just to show what we did last time.
we had a similar request before us.
mr. Nellis and ms. Peterson.
gibson?
>> I came here from planning and budget.
here with with us are representatives from bazaar voice and I would like to let them explain why they would like to have this resolution passed.
>> just generally describe the project for us.
>> yes, we are looking at expanding quite significantly here in the Austin area over the next five years.
I'm sure you all have seen where we have filed our s-1 to go public so we are looking at raising funds and to really expand our presence here in Austin.
we're committed to the community.
I've actually been with the company about seven months and there's a lot of people hired since I've been there.
we've expanded our footprint in our buildings.
we are out there on 360 in the san clemente property.
we have one full floor already on the third floor and when I started and we are looking at really expanding and growing in the community.
>> and the request?
>> the text enterprise nominations for the enterprise zone.
>> this would be a nomination to the governor's office as enterprise project and we would be submitting application for the March application cycle.
just to clarify a little bit on what mary said, there are already apparently over 500 jobs at the facility and as far as a commitment, I guess, to creation of new jobs that would be in this project application, it would be over -- or around 650 additional jobs.
>> it's kind of hard to say.
I've seen acceleration in growth just in the seven months I've been here.
it will definitely be within five years.
could be sooner.
just depends.
>> leroy nellis, planning and budget.
one of the objectives of the Texas enterprise zone is to promote job creation and capital investment in economically distressed areas of the state.
would you like to comment on how your application will address that objective?
>> yes, we do, we hire a lot of new grads coming out of college in high tech, developers, whether it's highly skilled areas.
so, you know, there's a big problem of kids coming out of college and not being able to find a job.
we hire a lot of those in our companies.
>> do you hire any economically disadvantaged employees?
>> yes, we do.
>> okay.
>> is there multiple criteria that would qualify a person as economically disadvantaged under the enterprise program, one of which was being out of a job, not having a full-time job for the previous 90 days before being hired, and recent college graduates qualify under that and just in general in the state of the economy right now, you know, people -- people being unemployed and out of work, those are definitely considered economically
>> [inaudible] on people.
>> what do you do?
>> our core platform of products -- if you go online and buy something and you leave a review on that that is our software.
>> so you evaluate, I guess, information,.
>> we use a lot of software and no, we're not a manufacturer.
>> is this a call center?
no, it's not.
>> what do the employees do?
>> there's a lot of developing, software development behind our engine that runs this rating view reese and answers.
we've come out with a new product called customer intelligence which is a software package that our clients can take the data and ask and answer and slice and dice into different ways they want to see a report.
we're rolling that out.
so most of it is really -- is software engineering.
and that's where we find a lot of very talented people in Austin.
>> [one moment, please, for change in captioners]
>> do you have a diversity recruitment policy.
>> ance that.
what I have seen there, we live it.
>> do you have any -- any written policy with regard to recruitment in enterprise zones?
Austin.
>> not a written one that I know of.
>> what's the amount of capital investment that you anticipate over the next five years?
>> it's probably between 6 and 8 million, most of that is going to be in infrastructure, where we are leasing our offices, computer equipment, software, stuff that we need to grow our business.
>> what about page 14, who put that together?
>> I'm sorry.
>> page 14.
it's kind of slightly different information regarding capital investment and jobs.
>> like, this is just to be clear, this is information that we put together back in June.
a lot of this is changing, like I said, our business is changing rapidly.
we are grow at almost 50% a year revenue.
these numbers may actually be understated.
>> you want the governor's office, you want up to date information.
>> I know, I know.
we're working on it.
when your software is a service company like we are, things change very rapidly.
>> is this the application that will be sent -- that has been sent to the governor's office.
>> it has not been sent yet, has it?
>> it has not.
this would be considered a draft for sure.
>> yes.
>> our last enterprise zone approval that the court approved, golf smith, one of the things that -- that katy has encountered has to do with the annual reporting requirements.
would you anticipate any type of difficulty in meeting the reporting refresh my memory to the governor's office?
>> no.
>> which includes the diversity of the workforce and several of the items that Commissioner Eckhardt has raised, we need to -- we need to include in the first annual report if the court approves it.
>> we understand that.
>> seems to me that we would get a copy of the annual report that you send to the governor's office, although once we approve the resolution I guess our work is done except watching --
>> we actually -- Travis County actually reviews and forwards the annual report to the governor's office.
>> it's due every October 1.
>> what is -- is there any mechanism for the county to -- to remove their designation?
should they fail to -- fail to -- to meet requirements?
>> no.
basically, the -- the rewards from being in the zone depend upon the amount of the capital, the amount of the employees that are hire.
if in fact they don't at least hire 10 employees, then they drop off of any benefit.
the benefit is my understanding that it expires after five years.
and so -- so it rolls off.
>> the benefit, I'm reaching back into my memory on golfsmith, it seems like the governor's office had a straight formula although they required the demographic break down, the formula is based on number of employees and capital improvement, correct?
>> that's my understanding.
>> they don't match up whether the employees came from an enterprise zone or not.
>> no.
but they do ask that the diversity be reported.
>> uh-huh, bits not actually figured into the formula for distribution?
>> yes.
I can speak to that.
the enterprise zone hiring requirement that you are speaking of, if the business is located in an enterprise zone block group, then their requirement is to hire 25% economically disadvantaged or enterprise zone residents for new or -- or turnover positions.
for certified -- certified jobs.
and then that's really how a company seeks to benefit -- seeks the benefit of the designation.
so
>> [indiscernible] single enterprise project designation, they would be eligible for $2,500 in state sales and use tax refunds per certified jobs.
bazaarvoice, in the way that hiring requirement comes into play in the way the comptroller's office when it goes under audit verifies that they have met that hiring requirement is if they certify with the comptroller's office 100 -- say 100 new jobs, which means that -- that, you know, they were hired after the 90 day look back date of the designation.
the date which this would be a March 2012 designation date.
their look back would be kind of like the third week of October of 2011, so, say, we certify 100 -- 100 jobs that were hired after -- after that 90 day look back, those are considered new jobs for the purposes of the enterprise zone program and at least 25% of those must be economically disadvantaged individuals or reside in an enterprise zone and once under the job certification, the refund claim requests go under audit.
the comptroller's office auditors verify, you know, the validity of the -- of the -- of, you know, that number.
that -- that 25% of the -- of the certified jobs actually live in an enterprise zone.
>> as -- has golfsmith met all of those requirements?
>> so far, yes.
>> do we have any -- you know, I totally understand y'all's desire for the enterprise zones.
so this question isn't about y'all so much about the program itself.
has there been any analysis that the program has actually resulted in the increased hiring of individuals from enterprise zones for the type of designated jobs?
>> I believe the comptroller did do a study on it.
they did have some criticism of it that it wasn't expansive enough.
that -- that really more funds should be dedicated to it.
I can forward everyone a link to that study.
>> that would be great, I would appreciate it.
>> what's the bv foundation.
>> the bazaarvoice foundation.
we are now forming an actual formal foundation that we are going for 501 c 3 status, that is the mechanism by which the company does charitable works.
>> are there specific positions designated.
>> within the company?
>> specific positions designated for recruitment of individuals who are low income or live in enterprise zones?
>> I would have to ask someone in hr that, but like I said we're pretty open to -- if they are a qualified person.
>> well, I guess that I would like to see the eeo profile next Tuesday.
have we looked at the draft resolution that we received?
>> I haven't.
>> no.
>> I haven't seen it.
>> I have two questions, one whether it's similar to the one that we used for golfsmith and two would be whether we think that it's all right.
and we get those answers next Tuesday.
not a whole lot of work.
I mean, I think.
the resolution is what you're asking for.
>> yes, sir.
>> and --
>> I think the judge has to sign the application as well.
>> there's -- well, there's -- there's a line on there for the nominating government entities, so we would have to see that complete, up to date application to be able to look at that.
>> right, the ordinance, I believe, golfsmith is the only project that the county has nominated so far.
and the ordinance nominating or establishing participation by the county in the program and nominating golfsmith would have laid out who the governing body liaison, I guess, would be for the county.
I don't believe it was judge Biscoe.
so he would not need to sign the application.
it was rodney --
>> rodney.
>> I forget his last name.
>> rhoades.
>> he's not here.
>> right.
but I don't think it didn't specifically say his name.
it was
>> [multiple voices]
>> completed one before one of our people certifies that that information is correct.
because that's what they're doing.
>> then I know that we have a draft resolution that I can forward to you guys this afternoon.
>> now, we have -- I'm looking at a resolution that I think came if you.
>> okay.
>> that the court has as far as backup, right.
>> that's all that I have.
is there other backup?
>> a draft application --
>> I forwarded a travis application yesterday morning.
-- I forwarded a draft application yesterday morning.
>> I haven't read it.
>> more information on the company.
>> whatever application revised for us prior to next Tuesday so we can forward it to the court for information and to katy and myself.
>> I apologize for not having the updated numbers.
we just
>> [indiscernible] so we've been pretty busy.
>> sure.
this is what we've got here, I believe was -- was sent to you guys as backup, is probably just the application like -- like it was
>> [indiscernible] other backup that goes into the overall application binder, so we can get, you know, we can get a draft complete binder for next week.
>> it would be nice to have it before next week.
>> okay.
>> yeah.
>> okay.
>> we'll do our best.
>> as soon as possible.
>> is the public hearing just related to the regional order?
there is a public hearing requirement.
or is that --
>> since this is a resolution, there would be no public hearing requirement.
it's only the public hearing requirement is only for the original order establishing participation.
>> we just have to be sure that that original order, the information in there still applies, we will need to run a check on that.
there's stuff we still need to do.
>> you say the new jobs the salary will be 120% of the average county wage.
so what number did you use for the average county wage?
>> um that is -- that is -- that backup will be in the application binder.
I'm not exactly sure.
if it's from the -- from the workforce commission.
>> let us know next week.
>> yeah.
>> let us know, if you can.
earlier.
>> preferably before the weekend.
>> yeah.
>> it would be a lot easier.
>> not a good day to get stuff --
>> backed up over the -- backup over the weekend, just so you know.
>> anything further?
your deadline is -- is before March 1, right?
okay.
>> thank you.
>> we'll have it back on next week.
if you'll call me on Monday afternoon, I'll be able to guess what time we'll reach the item.
save you a little waiting time.
The Closed Caption log for this Commissioners Court agenda item is provided by Travis County Internet Services. Since this file is derived from the Closed Captions created during live cablecasts, there are occasional spelling and grammatical errors. This Closed Caption log is not an official record the Commissioners Court Meeting and cannot be relied on for official purposes. For official records please contact the County Clerk at (512) 854-4722.
Subscribe for updates