Sitel Operating Corporation - Nevada Governor`s Office of Economic

Board Summary
Sitel Operating Corporation
Date: May 19, 2016
3102 West End Avenue, Nashville, Tennessee 37203
Cassidy Klundt, Site Director
Business Processing Outsourcer
Business Type: Expansion
County: Clark County
Main Location: Las Vegas, Nevada
Development Authority Representative: Michael Walsh - LVGEA
APPLICATION HIGHLIGHTS
- Sitel Operating Corporation is applying for Sales Tax, Modified Business Tax, and Personal Property Tax abatements.
- Meets statute for job creation and capital investment levels.
- Existing 794 employees at an average hourly wage of $12.30 prior to expansion plans.
- Average hourly wage equals 74% of statewide average hourly wage, company qualifies for 25% MBT and PPT.
PROFILE
Sitel provides contact center based Business Process Outsourcing (BPO) solutions in the U.S. to companies in every major industry. Sitel's focus is on
delivering solutions to support the CRM lifecycle: customer acquisition, retention and extension of customer loyalty. Source: Sitel.com
SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND
The economic development incentives offered by the state of Nevada have been an integral factor in the companies decision making process to
expand their operation in the state. Additionally, the city of Las Vegas and surrounding areas have been a great compliment to their business model,
and they know that they can continue to operate successfully providing additional employment opportunities to much of the workforce. Source: Sitel
Operating Corporation
REQUIREMENTS
Statutory
Application
Sufficient
% Over / Under
79
$20.89
$48,248
$48,248
153
$15.49
$1,060,045
$1,060,045
Yes
No
Yes
Yes
93%
-26%
2097%
2097%
Requested Terms
Estimated $ Amount
Abated to 2%
25% for 4 years
25% for 10 years
$64,700
$64,677
$7,309
$136,686
Contracted
24-Month Projection
5-Year Projection
153
153
153
Land
Building Purchase
BTS / Building Improvements
$0
$0
$480,010
Total
Construction
4
$249,515
$675,263
Job Creation
Average Wage
Equipment CapEx (SU & MBT)
Equipment CapEx (PP)
INCENTIVES
Sales Tax Abmt.
Modified Business Tax Abmt.
Personal Property Tax Abmt.
Total
JOB CREATION
OTHER CAPITAL INVESTMENT
ECONOMIC IMPACT ESTIMATES (10-Year Cumulative)
Total Jobs Supported
Total Payroll Supported
Total Output Estimate
194
$69,438,097
$146,714,821
Estimate includes jobs, payroll & output by the company assisted as well as the secondary impacts to other local businesses.
NEW TAX REVENUE ESTIMATES (10-Year Cumulative)
Local Taxes
Property
Sales
Lodging
State Taxes
Property
Sales
Modified Business
Lodging
Total
COST-BENEFIT ASSESSMENT
Direct
Indirect
Total
$645,567
$19,032
$0
$2,666,131
$1,289,673
$48,207
$3,311,698
$1,308,705
$48,207
$38,025
$27,441
$585,312
$0
$1,315,377
$159,887
$430,516
$250,631
$12,052
$4,857,097
$197,912
$457,957
$835,943
$12,052
$6,172,474
Economic Impact per Abated Dollar
$1,073
EMPLOYEE BENEFITS
- Percentage of health insurance covered by company: 65%.
- Health care package cost per employee - $5,148 annually with options for dependents.
- Overtime, PTO/Sick/Vacation, Merit Increases, COLA adjustments, Bonus.
NOTES
- Percentage of market outside of Nevada: 95%.
- The companies expansion efforts to be completed by mid-June 2016
New Total Tax per Abated Dollar
$45.16
Company is an / a: (check one)
New location in Nevada
Incentive Application
Company Name:
Sitel
Date of Application:
April 7, 2016
Expansion of a Nevada company
Section 1 - Type of Incentives
Please check all that the company is applying for on this application:
Sales & Use Tax Abatement
Sales & Use Tax Deferral
Modified Business Tax Abatement
Recycling Real Property Tax Abatement
Personal Property Tax Abatement
Other:
Section 2 - Corporate Information
COMPANY NAME (Legal name under which business will be transacted in Nevada)
FEDERAL TAX ID #
SITEL Operating Corp.
EIN16-1364816
CORPORATE ADDRESS
CITY / TOWN
STATE / PROVINCE
ZIP
3102 West End Ave.
Nashville
TN
37203
MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above)
CITY / TOWN
STATE / PROVINCE
ZIP
420 Pilot Rd.
Las Vegas
NV
89119
TELEPHONE NUMBER
WEBSITE
7022693410
www.sitel.com
COMPANY CONTACT NAME
COMPANY CONTACT TITLE
Cassidy Klundt
Site Director, Las Vegas, NV
E-MAIL ADDRESS
PREFERRED PHONE NUMBER
[email protected]
5057202676
Has your company ever applied and been approved for incentives available by the Governor's Office of Economic Development?
Yes
No
If Yes, list the program awarded, date of approval, and status of the accounts (attach separate sheet if necessary):
NA
Section 3 - Program Requirements
Please check two of the boxes below; the company must meet at least two of the three program requirements:
A capital investment of $1,000,000 in eligible equipment in urban areas or $250,000 in eligible equipment in rural areas are required. This criteria is
businesses. In cases of expanding businesses, the capital investment must equal at least 20% of the value of the tangible property owned by the
business.
New businesses locating in urban areas require fifty (50) or more permanent, full-time employees on its payroll by the eighth calendar quarter following
quarter in which the abatement becomes effective. In rural areas, the requirement is ten (10) or more. For an expansion, the business must increase
employees on its payroll by 10% more than its existing employees prior to expansion, or by 25 (urban) or 6 (rural) employees, whichever is
greater.
In urban areas, the average hourly wage that will be paid by the business to its new employees is at least 100% of the average statewide hourly wage.
in rural areas, the average hourly wage will equal or exceed the lesser of the county-wide average hourly wage or statewide average hourly
wage.
Note: Criteria is different depending on whether the business is in a county whose population is 100,000 or more or a city whose population is 60,000 or more (i.e.,
“urban” area), or if the business is in a county whose population is less than 100,000 or a city whose population is less than 60,000 (i.e., “rural” area).
Section 4 - Nevada Facility
Type of Facility:
Headquarters
Technology
Back Office Operations
Research & Development / Intellectual Property
Service Provider
Distribution / Fulfillment
Manufacturing
Other:
PERCENT OF COMPANY'S MARKET OUTSIDE OF NEVADA
EXPECTED DATE OF NEW / EXPANDED OPERATIONS (MONTH / YEAR)
95%
Jun-2016
NAICS CODE / SIC
INDUSTRY TYPE
561422
Business Processing Outsourcer;Call Center Fulfillment
DESCRIPTION OF COMPANY'S NEVADA OPERATIONS
Business Processing Outsourcer; International provider of customer contact management services
PROPOSED / ACTUAL NEVADA FACILITY ADDRESS
CITY / TOWN
COUNTY
ZIP
Existing; 420 Pilot Road
Las Vegas
Clark County
89119
WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP?
1
Section 5 - Complete Forms (see additional tabs at the bottom of this sheet for each form listed below)
Check the applicable box when form has been completed.
5 (A)
Equipment List
5 (B)
Employment Schedule
5 (C)
Evaluation of Health Plan
Section 6 - Real Estate & Construction (Fill in either New Operations/Startup or Expansion, not both.)
New Operations / Start Up - Plans Over the Next Ten Years
Expansions - Plans Over the Next 10 Years
Part 1. Are you currently/planning on
Part 1. Are you currently leasing space in Nevada?
leasing space in Nevada?
If No, skip to Part 2. If Yes, continue below:
If No, skip to Part 2. If Yes, continue below:
What year(s)?
What year(s)?
How much space (sq. ft.)?
How much space (sq. ft.)?
Annual lease cost at current space:
Annual lease cost of space:
Due to expansion, will you lease additional space?
Do you plan on making building tenant improvements?
If No, skip to Part 3. If Yes, continue below:
If No, skip to Part 2. If Yes * , continue below:
Expanding at the current facility or a new facility?
When to make improvements (month, year)?
What year(s)?
Yes
1996-2016
50,000
$821,955.00
No
Current
2016
How much expanded space (sq. ft.)?
0
$821,955.00
Part 2. Are you currently/planning on
Annual lease cost of expanded space:
buying an owner occupied facility in Nevada?
Do you plan on making building tenant improvements?
If No, skip to Part 3. If Yes * , continue below:
If No, skip to Part 3. If Yes * , continue below:
Purchase date, if buying (month, year):
When to make improvements (month, year)?
Yes
Jun-2016
How much space (sq. ft.)?
Do you plan on making building improvements?
Part 2. Are you currently operating at an
If No, skip to Part 3. If Yes * , continue below:
owner occupied building in Nevada?
When to make improvements (month, year)?
If No, skip to Part 3. If Yes, continue below:
No
How much space (sq. ft.)?
Part 3. Are you currently/planning on
Current assessed value of real property?
building a build-to-suit facility in Nevada?
Due to expansion, will you be making building improvements?
If Yes * , continue below:
When to break ground, if building (month, year)?
Estimated completion date, if building (month, year):
If No, skip to Part 3. If Yes * , continue below:
How much space (sq. ft.)?
Part 3. Do you plan on building or buying a
new facility in Nevada?
When to make improvements (month, year)?
No
If Yes * , continue below:
Purchase date, if buying (month, year):
When to break ground, if building (month, year)?
Estimated completion date, if building (month, year):
How much space (sq. ft.)?
* Please complete Section 7 - Capital Investment for New Operations / Startup.
* Please complete Section 7 - Capital Investment for Expansions below.
BRIEF DESCRIPTION OF CONSTRUCTION PROJECT AND ITS PROJECTED IMPACT ON THE LOCAL ECONOMY (Attach a separate sheet if necessary):
2
Section 7 - Capital Investment (Fill in either New Operations/Startup or Expansion, not both.)
New Operations / Start Up
Expansions
How much capital investment is planned? (Breakout below):
How much capital investment is planned? (Breakout below):
Building Purchase (if buying):
$0
Building Purchase (if buying):
Building Costs (if building / making improvements):
$0
Building Costs (if building / making improvements):
$0
$480,010
Land:
$0
Land:
Equipment Cost:
$0
Equipment Cost:
$1,060,045
$0
Total:
$0
Total:
$1,540,055
Is the equipment purchase for replacement
of existing equipment?
Current assessed value of personal property in NV:
Yes
$241,239
(Must attach the most recent assessment from the County Assessor's Office.)
Section 8 - Employment (Fill in either New Operations/Startup or Expansion, not both.)
New Operations / Start Up
Expansions
How many full-time equivalent (FTE*) employees will be created by the
153
end of the first fourth quarter of new operations?:
Average hourly wage of these new employees:
$15.49
How many full-time equivalent (FTE*) employees will be created by the
end of the first fourth quarter of expanded operations?:
153
Average hourly wage of these new employees:
$15.49
How many FTE employees prior to expansion?:
Average hourly wage of these existing employees:
794
$12.30
Total number of employees after expansion:
947
* FTE represents a permanent employee who works an average of 30 hours per week or more, is eligible for health care coverage, and whose position is a "primary job" as
set forth in NAC 360.474.
OTHER COMPENSATION (Check all that apply):
Overtime
PTO / Sick / Vacation
Merit increases
COLA adjustments
Bonus
Other:
Tuition assistance
Retirement Plan / Profit Sharing / 401(k)
BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary):
Section 9 - Employee Health Insurance Benefit Program
Is health insurance for employees and an option for dependents offered?:
Yes (copy of benefit plan must be attached)
Package includes (check all that apply):
Medical
Vision
Other:
Dental
Qualified after (check one):
Upon employment
Three months after hire date
Health Insurance Costs:
Cost of health insurance for company (annual amount per employee):
Health Plan annual out-of-pocket maximum (individual):
Six months after hire date
Other:
60 days
Percentage of health insurance coverage by:
$ 5,148.00
$ 6,350.00
[SIGNATURE PAGE FOLLOWS]
3
Company:
Employee:
65%
35%
No
Site Selection Factors
Company Name: SITEL
County: Clark County
Section 1 - Site Selection Ratings
Directions: Please rate the select factors by importance to the company's business (1 = very low; 5 = very high). Attach this form to the Incentives
Application.
Availability of qualified workforce:
Labor costs:
Real estate availability:
Real estate costs:
Utility infrastructure:
Utility costs:
Transportation infrastructure:
Transportation costs:
State and local tax structure:
State and local incentives:
Business permitting & regulatory structure:
Access to higher education resources:
5
3
3
3
3
3
3
3
3
3
3
3
OTHER FACTORS & RATINGS:
Overall SITEL has been operating in this market since 1996, and has been able to achieve consistent results
in performance through an ongoing successful effort to recruit, retain, and attract the necessary talent to fuel
the continued operations of the business. This consistency driven by the workforce in this market in
combination with our recruiting/training model will lead to continued success and sets the foundation for future
success in expansion efforts and renovations to existing facilities.
5
5(C) Evaluation of Health Plans Offered by Companies
Company Name: SITEL
County:
Total Number of Full-Time Employees:
Clark County
153
Average Hourly Wage per Employee
Average Annual Wage per Employee (implied)
$15.49
$32,219.20
Annual Cost of Health Insurance per Employee
Percentage of Cost Covered by:
Company
Employee
$5,148.00
65%
35%
Health Plan Annual Out-of-Pocket Maximum
$6,350
Generalized Criteria for Essential Health Benefits (EHB)
[following requirements outlined in the Affordable Care Act and US Code, including 42 USC Section 18022]
Covered employee's premium not to exceed 9.5% of annual wage
8.6%
MMQ
Annual Out-of-Pocket Maximum not to exceed $6,600 (2015)
$6,350
MMQ
Minimum essential health benefits covered (Company offers PPO):
(A) Ambulatory patient services
(B) Emergency services
(C) Hospitalization
(D) Maternity and newborn care
(E) Mental health/substance use disorder/behavioral health treatment
(F) Prescription drugs
(G) Rehabilitative and habilitative services and devices
(H) Laboratory services
(I) Preventive and wellness services and chronic disease management
(J) Pediatric services, including oral and vision care
No Annual Limits on Essential Health Benefits
I, the undersigned, hereby declare to the Governor's Office of Economic Development that the facts herein stated
are true, and that I have attached sufficient plan information for GOED to independently confirm the same.
Cassidy Klundt
Name of person authorized for signature
Site Director, Ops
Title
Signature
4.8.2016
Date
Sitel Corporate Overview.
Welcome
The challenge for most
organizations is that the design
and management of customer
experience is not their core
expertise. At Sitel, it’s what we
love most and do best.
Experience shared.
Sitel Corporate Overview.
p.02
Who we are
We are Sitel. We are one of the world’s leading outsourcing providers of
customer experience management. Experience is everything at Sitel. It’s
what sets us apart from the rest. Whether we’re dealing with a simple
account query or creating an entire customer management strategy,
we collaborate with our clients, we share our expertise, we build trust,
and create strong customer relationships; adding value through our key
brand attributes: knowledge sharing, a people first culture, global strength
combined with local flexibility, and operational excellence.
To learn more about the trends reshaping
the future of customer service, download
the new “Age of Experience”
2015 Trends Report at sitel.com
The challenge for most organizations is that the design and management
of customer experience is not their core expertise. At Sitel, it’s what we
love most and do best. And it’s not just about cost cutting and process
efficiency. As customer relations experts, we are also better positioned
to help you improve the whole experience of your customer with your
brand, using the most appropriate channels and communication
methods.
Our business and services
With almost three decades of industry experience, we are the leading
global business process outsourcing provider of customer care and
complementary back-office processes. Sitel’s clients, many of the largest
and well-known brands in the world across all major verticals, have
selected and continue to partner with Sitel for one reason: Sitel delivers
the results they want and expect.
Sitel Advisory
Services
Sitel’s Advisory Services leverages Sitel’s expertise and thought leadership,
as well as that of our ecosystem of leading global integrators and
applications providers to improve customer experiences.
Sitel Insight
Services
Sitel’s Insight Services provide business intelligence and proactive decision
support to facilitate the formation of business insights and real-time
decision making experiences.
Sitel Cloud
Services
Sitel’s Cloud Services provide a hosted environment that enables our clients
to migrate from their legacy systems to a cost-effective on demand service.
Sitel
Omnichannel
Services
Sitel’s Omnichannel Services provide a robust unified
communication platform that enables any time, any channel interactions
while maintaining a single brand experience.
Sitel
Engagement
Services
Sitel’s Engagement Services balances innovation with
operational optimization.
Experience shared.
To learn more about Sitel’s Service
Portfolio, please visit our solutions
webpage at sitel.com/solutions
sitel.com
Sitel Corporate Overview.
p.03
Our people first
Sitel’s 61,100 employees provide clients with predictable and
measurable Return on their Customer Investment by building
customer loyalty, increasing sales and improving efficiency.
But more importantly, Sitel associates become an extension of
our clients’ brands by understanding their objectives, embracing
their culture and taking ownership of their customers.
Infrastructure and footprint
Sitel’s solutions span 108 domestic, nearshore, and offshore
centers in 21 countries across North America, South America,
Europe, Africa, and Asia Pacific.
We have developed industry-specific competencies that allow
us to respond to unique demands and requirements in specific
vertical markets.
61,100
Employees
Brazil
Bulgaria
Canada
Colombia
Denmark
France
Germany
India
Mexico
Morocco
Netherlands
New Zealand
Nicaragua
Panama
Philippines
Poland
Portugal
Serbia
Spain
United Kingdom
United States
108
21
Facilities
Countries
40
Languages
Experience shared.
Revenues
$1.4B
sitel.com
Sitel Corporate Overview.
Why Sitel
Great customer experience starts with great
people that are well trained and equipped to add
value to and address the needs of the customers.
Keeping the promise of better experiences is how
Sitel is helping the largest brands in the world
retain and grow their customer base.
As a leading global outsourcing service provider,
Sitel combines knowledge sharing, a ‘people first’
culture and unparalleled excellence at both the
global and local level. Whether you partner with
us or work for us, you will discover what it takes to
deliver outstanding customer experiences.
To continue the conversation and to learn more
about our services, talk to one of our experts
today or visit sitel.com.
© Copyright Sitel Corporation 2014
Produced in the United States of America
March 2015, version 3.0
All Rights Reserved
Sitel Global Headquarters
Two American Center
3102 West End Avenue
Suite 900
Nashville, TN 37203 USA
Phone: +1 615.301.7100
Toll-Free (in U.S.): +1 866.95.Sitel
[email protected]
www.sitel.com
Experience shared.
p.04
Employment Schedule, Detailed
The Office has determined the detailed employment schedule as
described in this application constitutes confidential proprietary
information of Sitel Operating Corp., and is not a public record.
Equipment Schedule, Detailed
The Office has determined the detailed equipment schedule as
described in this application constitutes confidential proprietary
information of Sitel Operating Corp., and is not a public record.