Travis County Commissioners Court
February 14, 2012 (Agenda)
Item 2
Number 2 is consider and take appropriate action on request for a resolution nominating bazaar voice, inc.
as an enterprise zone program.
do we have representatives from bazaar here?
please come forth.
>> leroy nellis, planning budget office.
we did receive the information requested by members of the court last Tuesday.
ie the ethnic composition of their current workforce and also the draft copy of their application to the governor's office.
and with kind of that introduction, I'll turn it over to them.
>> my name is clara wellhousen
>> [inaudible] getting a nomination as an enterprise project for the governor's office.
this is chris lynn, she's from bazaar voice.
kathy smith from bazaar voice.
h.r.
director of operations.
and susan also with ryan.
>> we brought a couple of people from bazaar voice to answer questions.
I think it's best to hear directly from the company as opposed to consultants.
this is a very exciting company.
it's a fabulous company for the city of Austin.
they are creating a lot of jobs, making a lot of investments in the community.
and they are great jobs, good benefit jobs.
jobs that have a real future in the community.
so I'd like to let chris tell you about the company.
they were a startup company in 2005 and with this new expansion that they are doing they will be over 1200 employees by the end of this year.
so it's a great story.
they are about to go public.
so chris, if you would just -- I know you always like to tell the bazaar voice stories.
>> right now we have 780 employees, 172 of those are part time, stay at home single moms as an example, predominantly in the Travis County district.
we have north of 500 full-time employees also predominantly based here as an internet startup company.
as susan mentioned we recently filed s-1 prospectus with the s.e.c.
with a view to becoming a public company.
the view is raise capital to reinvest in the company and continue to grow.
we have revenues currently of north of $100 million so apparently projected to be 100 million, and have added more than 450 jobs in the last two and a half years alone.
>> does everybody have a copy of their ethnic breakdown of their current workforce that we forwarded to you or would you like a copy?
>> yes, sir.
at least the ethnic breckdown 89 to 90% is -- what is your plan for economically disadvantaged individuals as defined by the program?
>> I think as we've come along and grown as a young company, we've recruited heavily and as quickly as we had for the jobs open.
now as we start to go into the public phase to think about how we recruit for diversity and, you know, just in all the different areas so we're starting to think about that seriously and to put a plan like that in place.
our fiscal year starts in actually may of this year and so that is part of our initiative for going forward is to really think about how we focus on recruiting for diversity.
it's who we are as a company.
we have a lot of heart and soul in this community.
our founders are from Austin.
we have a number of initiatives where we've really focused on one thing that we've done through our bazaar voice foundation our focus is on building entrepreneurs in economically disadvantaged children.
we have actually just funded our foundation with 200,000 chairs, I think, chris.
>> with almost $2 million.
>> and the mission of that foundation is to bring economically, you know, disadvantaged children through college.
so we've adopted a class of 61 seventh graders and hope to see them through, you know, high school, college and I always say I would love for us to hire those 61 at bazaar voice.
we've taken a focus on veterans.
we have a number of veterans in our office so we have meetings this week, scheduled calls with veterans associates in washington to really kind of look at that and see how we can start to bring veterans into our population.
for us it's really just a growing stage.
I think things happen a lot in phases.
we have had a focus on the college base and now as we move forward we want to expand that workforce because we all live and work here in Austin and we just feel a real sense of responsibility with the -- you know, the success of our company to really give back and build that diversity.
while we don't currently have a formal plan in place to recruit diversely, we are looking forward to doing that and feel like the partnership with the work we're doing with you guys will help hone that and force us to look at than hold us accountable as to things we want to do in the community because it's part of who we are.
>> because of your recruitment thus far being predominantly focused on graduates from college, do you believe that currently your course meets the 35% requirement utilizing the definition -- first definition in the statute which is an economicly disadvantaged individual, an individual who is unemployed for at least three months before obtaining employment with the qualified business.
>> yes, we do.
>> so what will be your incentive since you've already met the 35% from recruitment, from college graduates, what will be your incentive to go above and beyond that 35% to economically disadvantaged individual definitions such as individuals who receive public assistance, individuals who are low-income as defined by u.s.
code, individuals with disabilities, inmates and returning inmates, returning to the community, the those who are on-in section 8 housing, individuals who are coming out of foster care?
>> well, I think chris could probably speak to the economic advantages, but I think for me it's the director of people operations and who we are as a company, the incentive for us is just bring a wider workforce into who we are at a company.
like I said, we live and work here.
we built this company here.
and we have a responsibility to give back to the city.
and part of that is, you know, finding this diverse workplace and bring it into our company.
there's a lot of great people out there with a lot of great skills and I think now is the time for us to planfully look for.
that we've been busy growing and adding people but now is time to take a planned look as how do we bring those people into who we are because we have a responsibility as a company to grow that.
>> thanks.
>> so what schools have you targeted for these 61 seventh graders?
>> they are actually we partner with break through Austin so there are variety of schools kind of all on the east side.
there's some out of manor, but they are all schools of economically disadvantaged children.
>> you will be able to make that list available to us?
>> absolutely.
>> liter later today or the next few days.
>> yes.
>> if I can get to you turn to page 16.
this says commitment to the community.
and there is a list of looks like goals that the state imposes.
and the first, second, third, fourth and the last one all sort of go to expanding your workforce to include minority workers basically.
and you've answered yes to all of those.
so how will you demonstrate how well you've done on those at the end of each year?
do you put together some sort of report?
>> we currently have a demographic report that we've been doing for about a year or to, and I notice you are like -- when we talk about our commitment to child care, I think as a young company we're moving in the right direction.
we've already had conversations with a number of different people that have child care on site like patagonia and people like that.
it's something we're thinking about and looking at.
we are a company driven by metrics so absolutely we will at the end of every year look at and see how we're doing because our company is driven by metrics.
we make changes by metrics and chris can probably speak to that also, but absolutely when we commit to something, we'll be measuring it and happy to let you know how we're doing.
>> leroy, what are we entitled to receive in terms of reports?
>> essentially what happens is that each year the company will provide a report that will essentially go through the items that they've indicated that they are going to make a commitment to the community, and they will give us a narrative as to how much progress they've made in meeting those -- those pledges to the community.
and then what we do is bring -- bring that annual report to the court and ask the company to come forward and answer any questions about that report.
first report is due in September of 12.
if you approve the resolution.
let me clarify one thing that one mentioned in regard to the governor smith enterprise zone.
your limitation on enterprise zones is that you have three zones that you can recommend in the city of Austin.
you have one currently.
and then you have six other zones, three in each of two other municipalities, of which we don't have any.
so you've got one out of nine possible enterprise zones that you've committed.
they run for five years and then they go away.
so that's -- that's kind of the parameters of the enterprise zone resolution.
your resolution is in support of their application if you approve it.
that does not necessarily mean that the governor's office is going to approve it.
it is an application process.
>> but if we don't support it, what will --
>> if you don't support it, my understanding is there's very little chance of the governor approving it.
>> what financial benefit comes from the state as a result of this designation?
assuming they approve it.
>> I can answer that.
>> go ahead.
>> the benefit to the company is for the creation and retention of 500 jobs over a five-year period, they would get a benefit of 1.25 million.
>> sales tax.
>> that's state sales tax that is refunded if they've paid that much during the five-year time period.
and just to clarify one item of the designation for the purposes that the county is allowed to nominate three.
it's three per biennium.
golfsmith happened last biennium so you are in a new biennium now so in the next year and a half if you wanted to nominate two more projects you could.
you are not limited by one.
>> the governor smith profile was similar to yours and we goff smith --
>> it's similar to what this company has supplied to you and I would assume we would ask them to supply an updated one as of August 31st or September the 15th for the annual report.
where you can take the current ethnic breakdown and look at the later one and see how much progress it's been made.
>> also --
>> my question was about to be --
>> I'm sorry.
>> -- whether you would agree to contract with us to put together a similar recruitment program and basically partner with us to make this happen.
I think the numbers here are probably worse than goff smith's in terms of employment of african-americans, hispanics, asians and other nonwhites in our community.
and to be honest, I feel duty bound to encourage you to be a bit more proactive in diversifying the workforce.
and I think working with middle schools are a step in the right direction, but there are other resources in the community who once they understand exactly who you are looking for will help you get those individuals.
now, this is kind of way out west, if you live east, it's a long drive, but if you are unemployed, it would seem to be a whole lot shorter.
and so my guess, my request rather is that we partner to at least put in place initiatives that ought to enable us to improve these numbers in that we monitor periodically anything we can help you do to recruit qualified employees, then we would be happy to do it.
>> judge?
when you finish, I would like to --
>> I'm finished now, I guess.
>> I want to make sure you get it all out.
you've laid out a pretty good plan.
you know, we did deal with goff smith a little bit ago with some of the same type similar situations set up in enterprise zone.
and, of course, during that time we kind of went back and forth with goff smith hoping that we could come up with some type of resolve to meet what we figured were some -- some low numbers as far as diversity in this community.
now, I wasn't here last week, I was in college station doing my continuing education, but I did hear that you had deliberations and, of course, this item was before the Commissioners court on last week and a lot of questions that were asked.
and, of course, I'm still not pleased with some of the answers I'm getting today, but I have not really heard a bona fide commitment that you are going to do what I think we are laying out on the table.
yes, there is a lot of unemployment here in this area.
just recently, in fact, down at palm -- down at the -- the city had a program again not too long ago and, of course, during that process we saw a lot of unemployment, persons take were looking and seeking for jobs trying to match jobs with employers.
that was the big deal.
so we are still look like in that arena now, and, of course, I'm trying to make sure that we have a commitment from you.
because, again, let me ask this question so the public will hear again what y'all are about.
what does your company do?
what do you do?
>> we are a social
>> [indiscernible] company.
so if you go on to a retail website, for example, wal-mart or best buy, and you are looking for a particular product, you will be able to use our technology to see reviews from other consumers about that product, what they liked about it, what they didn't like and that helps you as a consumer make a more informed decision and also advises the retailer about products consumers like or don't like and benefit the consumers in those products will be adapted to meet the needs of the consumer.
>> thank you for that.
I want to make sure the public heard that.
and, of course, to understand what we're talking about.
and then again to reiterate that -- and I think judge brought up location because if he hadn't I was going to bring it location as far as where you are.
I don't know that you will determine that's ban distressed area.
and, of course, I guess different definitions may mean something to different folks.
this economically disadvantaged as miss Eckhardt just -- Commissioner Eckhardt just elaborated to and those folks have been unemployed for a few months here.
so that, in my opinion, is kind of a misnomer, but as far as the state is concerned that's one of the definitions.
so we got some wiggle room I think we can work on, but before I sign up on this -- let me ask you this, when is the deadline that you must have your application in?
if the court decides to approve it, when is the final bite out of the apple -- pardon me?
>> March 1st.
>> March 1st.
okay.
well, it just appears that we got a little wiggle room and I want to make sure that these numbers are a heck of a lot better than what I'm looking at today because economic opportunities and our economic development policy as we've been trying to fine tune a lot of things, we're talking about diversity.
we're not talking about software situations.
yes, that is part of it, but there are diverse activities I think that we can use as far as some of the persons that are looking for employment that may not have the skills that you require.
there has to be some type of diversity in what we're looking far as employment opportunities.
but it does show for nonwhite folks, it really does show a great margin of -- of employment opportunities that appear to be not for persons of color and that's the way it appears, but that's what we're looking at as far as the numbers are concerned.
what I'm trying to tell sue that whatever you can do to make it look better as far as my vote and come up with numbers we can all be happy about this thing and move merrily down the road.
any comment on that?
I heard 1200 jobs, well, of those 1200 jobs, how will they be divided among the community?
and, of course, traffic is another deal.
where are you located?
>> we're located on san clemente with offices at 360.
>> I'm from east Austin and I live on the east side of precinct 1.
and, of course, we have a lot of folks over there that are underemployed and unemployed and looking for jobs.
I get hit with that all the time.
so transportation would be an issue.
capital metro and all these other kind of things as far as getting back and forth to employment opportunities.
so I just think a lot of things have to be worked out in my mind for me to support it.
so right now today, judge, I'm not there and I would like to see more of a commitment from them if they are really serious about what they are doing here and reaching out to the community as they say they are, well, that's, in my opinion, have a significant increase as far as the percentages of increase of persons of color in this community.
I don't know how you can do that with the time line, but I would like to see something in the direction in writing that would say and suggest that's what we're going to do.
>> we asked goff smith to put together a plan, right?
>> they were requested to
>> [inaudible] put together a
>> [inaudible].
>> there's no way to change the stats as they are today.
>> and we also required they come back in 12 months and provide their demographic statistics and show improvement which actually we didn't do.
>> are we able to pull some of the goals listed on page 16 into our resolution?
you sent a draft resolution out yesterday.
how long would it take to finalize it?
>>
>> [inaudible].
>> I think we need to draft an m.o.u.
similar to what we did for goff smith and I would be supportive of this realizing there's nothing we can do to change the facts that have existed before and but we really can work a bit month proactively and my goal would be to partner with you to help you.
>> right.
>> and I wish there were a way that we could work -- I agree with what Commissioner Davis said, and then also just south of the river in precinct 4 there are native spanish speakers as well who could probably do a good job on the telephone.
but I'd like to work out some of those numbers maybe with leroy.
are we going to take another week?
>> I think we ought to move approval to indicate that we plan to proceed and at the same time work on that m.o.u., the resolution.
>> and work on the plan.
>> yeah, and I mean it seems to me that we still ought to remain level.
whatever we ask goff smith to do I think we ought to expect bazaar voice to do the same thing.
I don't know that I would hold this up.
I assume if there's a March 1 deadline there's no reason for us to bump up against it if we're going to do this.
but looks like we have your commitment today to execute the right documents for us to proceed with what we've discussed.
>> you do, yes.
>> I'd like to hear that.
I'd like to hear --
>> absolutely.
>> -- what the judge is saying here, I want to hear it so it will be a matter of record before this court.
I'd like to hear that m.o.u.
and also the contractor situation they have in Travis County in this particular regard.
>> absolutely.
you have our commitment.
>> pardon me?
>> you have our commitment.
>> all right, now, everybody heard that.
so I heard it and everybody else in the listening audience heard that.
>> what we can bring back next week with the document, I assume, is are there an outline of your plans for addressing the issues during this first 12 months.
would that be satisfactory.
>> yes.
>> and then you just get to it katy and I and we'll get out the agenda.
>> Commissioner, we represented goff smith when they came before you, worked with you guys on their plan and so we're familiar with what you are going to want and are prepared to help bazaar voice meet your expectations.
>> okay, I would like to -- like I say, a verbal commitment is one thing, but what's in writing is more meaningful to me.
>> sure.
>> but anyway, I'd like to see it in writing also.
>> Commissioner Huber?
>> I just want to say located in my precinct and to my knowledge no one from bazaar voice has reached out to my office so I would be happy to talk with you.
>> we would welcome that.
>> they thought it was in my precinct.
>> we were confused by the map.
we did reach out to Commissioner Eckhardt and she said I think you are in Karen Huber's district.
we would like to sit down with any of you and help you get to know bazaar voice better.
it's a very exciting company.
>> and second, just out of curiosity, a million three that you said --
>> 1.25.
>> 1.25, that's nothing to sneeze at, that's a significantment of money.
but if you are getting ready to go public and looking at major revenue to be raised why do you want mean from the enterprise at this point?
>> we're growing dramatically and the investment opportunity is large and we want to continue to hire people with a broad range of diverse background.
and it's really about reinvestment.
>> I have two questions and they are related to each other.
what -- what would be the effect if the Commissioners court were to nominate not see sufficient improvement or only see -- only see the 35% met by the continued recruitment of college graduates?
is -- can the Commissioners court withdraw its support and is there any effect of withdrawing their support?
>> my understanding is once you support the application, that that's-with the exception of the annual evaluation and report to the governor's office, that that's the extent by which you the can exercise your authority.
>> so once we've nominated --
>> once you've nominated, then it's up to the governor's office to evaluate the application and approve it.
and then the county is responsible for providing the governor's office the annual report.
>> I think the one thing that is kind of the leverage that you always have is the commitment of the company to the community.
they are going to have other times when they are going to have to come before this commission and they are not going to want to have reneged on a promise.
>> although using goff smith as an example, I'm looking become at the minutes from may 26, 2009, the motion was goff smith would come back within 12 months to show us how they had done with their diversity program.
I don't believe we've seen goff smith since that day.
>> they did provide a report and they did ask if they need to do come to court and we were told they were not.
they did supply the information.
>> we forwarded the information.
I think we may have -- our office forwarded to the court the report and someone -- I don't know, indicated that it wasn't necessary to come before the court.
but I would recommend in the future both goff smith and bazaar voice come before the court each year and give an update on the progress of their commitments.
>> that would be good because I think there is -- as the judge noted, page 16 of the application seems to go against what y'all are saying about the mentoring in middle schools that actually has a checkmark saying there would be no mentoring.
>> this is a draft application.
>> I'm not sure they call it mentoring.
I move that we indicate our intention to proceed with the project, that we ask staff to get with representatives from bazaar voice and put together the instruments necessary to achieve what we have discussed today similar to actions we took in the goff smith situation.
>> second.
>> and the issue would be back on next week, especially the resolution.
and dr. Kim, your hand is raised on this item.
there's a chair available next to mr. Nellis.
>> thank you, sir.
above all I greatly appreciate all of you for the department and for this court to make Travis County
>> [indiscernible].
I really enjoy, I really appreciate you.
that's why I am here.
I have two questions.
first one may I have the documents you have right now?
papers to present to the court.
today's report.
>> I assume it's public information.
>> [inaudible].
>> it is confidential?
>> well, I don't know whether it is or not, but I will give you my backup after today and I'll make a copy of it.
there's a whole lot of information that's not confidential.
>> yes, sir.
>> we'll make sure we do due diligence on that before we release all of that.
>> according to president obama to me, June 30, 2010, he wrote to me he is proud of his openness and transparency of the government.
so it must be open to the public.
and second question, annual report of
>> [indiscernible] in 2000 and annual report of 15,000 2001, I need that.
the annual report of Travis County Commissioners court -- no, Travis County -- Travis County community supervision department budget.
Travis County community supervision department September 15, 2000, and September 15, 2001.
I need this.
>> is that relative to this discussion, doctor kim?
is that relevant to this discussion?
>> yes.
>> how is that relevant to bazaar voice?
>> 2000 and 2001 my son was transferred --
>> okay.
>> Travis County community --
>> dr. Kim.
come by my office, we're give you what you are asking for but I'm not sure it's relevant to this.
I would be happy to work with out this.
>> thank you.
>> was there a second to my motion?
>> yes, judge.
>> discussion on the motion?
>> yes, judge, let me say to the applicant, this year, as I stated earlier, at the palmer event center there was an opportunity for job seekers finding employers in this community.
I hope something that the city of Austin, Travis County end up getting involved in and it was year before with those 3500 job seekers looking for employers.
I hope and if you prevail in getting awarded enterprise zone and also your situation from the state, from the governor, I hope that in the future you would take that same opportunity for some serious job seeking individuals here in this community to match them up with jobs.
I hope you really take that to heart in the future.
okay, I just want to lay that out to you.
>> any more discussion on the motion?
Commissioner Huber.
>> judge, I just want to say I'm totally supportive of enterprise growth in my precinct and the entire county, but I will be abstaining on this vote because I don't feel comfortable with information have I at this point.
>> any more discussion on the motion?
all in favor?
show Commissioners Davis, Eckhardt, Huber and yours truly voting in favor.
Commissioner Huber abstaining.
did I call the right names there?
I was thinking Commissioner Gomez and looking at Commissioner Huber.
Commissioner Gomez in favor, Commissioner Huber abstains.
thank you very much.
look forward to work warm and muggy.
we'll have it on again next week and hope it will be shorter.
thank you.
>> thank you all.
>> thank you, Commissioners.
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