BG Reads | News You Need to Know (November 23, 2020)
[BINGHAM GROUP]
***NEW*** BG Podcast Episode 114: Discussing Austin's Code Department with Director José Roig
On today’s episode we speak with José Roig, Director of Austin’s Code Department.
José and Bingham Group CEO A.J. discuss his background leading to the directorship; the mission and role of the Austin Code Department; COVID-19's impact operations; and his priorities going into 2021.
Joining the City of Austin in 2007, José was most recently Interim Director of the department. His position was made on permanent Friday, November, 13th (Read the City’s press release here).
CITY HALL MOVES
Deena Estrada-Salinas, most recently Chief of Staff to Council Member Paige Ellis (D8), has moved to Travis County Judge Andy Brown’s team as Deputy Chief of Staff for Policy.
Pre-filed bills for the 87th Texas Legislature:
[AUSTIN METRO]
‘Hand-to-hand combat’: Campaigns battling in Austin City Council runoffs switch gears as December election nears (Community Impact)
The results of the November general election proved the four Austin City Council incumbents up for re-election were more favorable than any of their challengers, topping their closest opponents in the popular vote by a range of 6.9 to 42.1 points. However, “most popular” in November does not always guarantee a ticket to re-election.
Sometimes, it goes to December. In Texas, if no candidate in a race receives more than 50% of the popular vote, the top two vote-getters move on to battle in a head-to-head runoff election. In Austin City Council’s crowded District 10 and District 6 elections, incumbents Alison Alter and Jimmy Flannigan earned a higher vote share than any other single candidate in their races. But at 34.2% and 40.3%, respectively, they will have to face the second-place finishers in a Dec. 15 runoff.
In District 10, Alter will face conservative challenger Jennifer Virden, who received 25.4% of the popular vote in the seven-candidate field. Up in District 6, Flannigan faces his own conservative challenger, Mackenzie Kelly, who drew 33.4% of the popular vote in the four-candidate race. Early voting runs from Dec. 3-11.
Local politicos describe December runoff elections with a range of terms: unpredictable, highly predictable, exciting, tricky, hard work, clean slate. Those who spoke with Community Impact Newspaper all agreed December runoffs, with their dramatic drop-offs in voter turnout, are almost a completely different beast than the November general elections.“Runoffs are my favorite kind of campaign and my favorite kind of election,” said local pollster and campaign expert Mark Littlefield, who has been on the winning, and losing, side of runoff contests. “It’s less about money, less about expensive TV ads and glossy mailers. It’s all about hand-to-hand combat and who has the best organization and most passionate voters.”
Since the City Council moved to its 10-1 geographic representation system of government for the 2014 elections, there have been 11 December runoffs, and this year’s will make 13.
In seven of those races, the November leader held on for victory in the runoff a month a later.
In the other four, the second-place finisher in November went on to win in December—two of which happened in District 10. In 2014, Sheri Gallo trailed Mandy Dealey 22.9% to 30.7% in the general election but defeated Dealey 54.7% to 45.3% in the runoff. In 2016, Gallo, the incumbent, just missed the 50% mark by 1.8 points, leading second place finisher Alter 48.2% to 35.5%. Alter went on to win decisively in December, 64% to 36%.
One thing can be guaranteed in a runoff: Voter turnout will significantly drop, leaving the fate of the City Council seats to the relative few who make it to the polls in December… (LINK TO STORY)
Project Connect train lines, expanded Austin Convention Center expected to connect under downtown streets (Austin Business Journal)
On paper, two of Austin's biggest long-term projects appear to collide.
Both the newly approved Project Connect transit plan and the westward expansion of the Austin Convention Center require underground development beneath Trinity Street between Cesar Chavez and Fourth streets, according to project documents.
But officials with both Capital Metropolitan Transportation Authority and the Austin Convention Center Department said a partnership is in the works to create a cohesive development that will benefit both projects.
Those efforts — which would result in two underground train stops downtown and an expanded convention center hub — would help transform downtown Austin in the coming years. They would also generate extensive construction throughout the area as crews dig beneath a swath of eastern downtown.
Officials at both agencies declined to disclose specific details about what this collaboration may look like, pointing out that the groups are still in the early planning stages. And the head of Capital Metro stressed that the development of the transit project is still far off.
Trisha Tatro, interim director of the Convention Center Department, said in a statement that the convention center expansion team is working with Capital Metro "on integrating the designs for both plans into one seamless development," and there might be some construction cost savings from the collaboration. Austin City Council last year endorsed a $1.1 billion plan to expand the convention center west of Trinity Street. The project is still years away, and department officials are working on purchasing agreements for the sites they will need to enlarge the facility.
"As the design phase of the Austin Convention Center expansion moves forward, we will continue this coordination," Tatro said… (LINK TO STORY)
Austin jobless rate sinks to 5.1%, lowest point in pandemic (Austin American-Statesman)
Austin-area businesses added thousands of workers to payrolls in October despite fears of a surge in coronavirus infections this fall and expiring government stimulus, pushing local unemployment to its lowest point since the pandemic first slammed the economy.
The unemployment rate in the Austin metro area fell to 5.1% last month, according to the Texas Workforce Commission, down from 6.3% in September and well below the historic high of 12.2% it hit in April, when commerce statewide and nationally was in a coronavirus-induced tailspin.
About 11,000 more people were working in Austin last month than in September, reducing the number officially listed as unemployed in the region to about 63,700. In April, more than twice that number — about 138,800 people — were listed as unemployed in the Austin area.
Unemployment remains significantly higher than before the pandemic, however, when the local economy was booming. In October 2019, the region’s jobless rate measured 2.6%, and only about 32,000 people were unemployed.
Economists called the hiring last month good news, but they cautioned that the pandemic is still the biggest influence on the direction of the economy. With virus infection rates on the rise recently, that means job losses are likely to mount once again, they said.
“Right now, the virus is the dog and the economy is the tail,” said Jon Hockenyos, president of Austin-based economic analysis firm TXP Inc.
He said it’s likely that unemployment, both locally and statewide, will be higher when figures for November are released next month.
The unemployment rate for Texas overall came in at 6.7% in October, according to the Texas Workforce Commission, a decrease from 8.2% in September but up from 3.3% in October last year.
Adjusted for seasonal factors, the agency said the statewide jobless rate registered 6.9% last month, compared with 8.3% in September and 3.5% in October 2019. The workforce commission doesn’t immediately adjust metro-level data for seasonal factors.
The Austin metro area, which includes Travis, Williamson, Hays, Bastrop and Caldwell counties, has been performing better economically during the pandemic than many other regions. The trend is partly the result of continued gains from corporate relocations and expansions, according to economists, as well as a large proportion of workers in fields such as technology and professional services able to work remotely with relative easily.
“Austin is a bit unique” because of its high-tech base and its status as a hub for jobs in government and higher education, said Bernard Weinstein, a Southern Methodist University economist. The city “hasn’t been affected nearly as much as the communities that rely heavily on energy or transportation.”… (LINK TO STORY)
Hispanic flight from Austin tied to affordability, gentrification, experts say (Austin American-Statesman)
Bertha Rendon Delgado said the East Austin neighborhood she grew up in isn’t what it used to be. The neighbors she once knew and houses that made up the area have slowly started to disappear.
Rising property taxes and the redevelopment of the neighborhood has pushed many families out, completely changing the face of the once thriving Chicano community, she said.
“Our culture has been struggling for centuries,” Delgado said, “And people don’t understand what has happened to my community.”
The East Town Lake neighborhood, which makes up part of Austin’s District 3, has faced an increase in property taxes and the cost of living — what many residents are seeing as gentrification — pushing many Hispanic families out.
The trend is happening all over the city, as more and more Hispanic families seek affordability outside of the Austin city limits… (LINK TO STORY)
Torchy's Tacos gains more big backers as it expands nationally (Austin Business Journal)
Torchy’s Tacos has more financial backing to execute on its strategy to take its food coast-to-coast.
The Austin-based company announced Nov. 20 additions to its ownership group as part of a round of funding that will be used to accelerate the company's continued growth nationwide, with plans to expand to an additional 10 states over the next four years. Torchy's spokesperson Quinn Kelsey said the deal amounts to about $400 million.
General Atlantic, a New York-based equity firm that first invested in Torchy's in 2017 and is now majority owner, has been joined in the ownership group by D1 Capital Partners, T. Rowe Price, Lone Pine Capital and XN Capital.
Torchy’s founder Michael Rypka and all of the members of the original ownership group will reinvest as individuals, according to the announcement.
Founded in a food trailer in Austin in 2006, Torchy’s Tacos has quickly become one of Austin's iconic businesses along the lines of Tex-Mex chain Chuy's, which is a public company with a national business plan.
Torchy's currently has 83 locations in seven states, with an average unit volume of $3.8 million, according to the company. During the Covid-19 pandemic, Torchy’s continued its growth by opening 12 new locations and expanding the brand to three additional states.
The company has made it clear for many months that growth is a priority.
“Since our initial investment in 2017, Torchy’s has demonstrated the strength of its brand as it has successfully captured impressive unit growth,” said Andrew Crawford, chairman of Torchy’s and global head of consumer at General Atlantic, in a Nov. 20 announcement. “We admire the management team’s deep operational experience and commitment to providing an original and differentiated experience. We believe their vision will continue to resonate across a wide-ranging demographic of guests, geographies and footprints as Torchy’s expands across the United States.”
North Point Advisors Inc. and BofA Securities acted as placement agents on the transaction. Additional terms of the deal were not disclosed.
Torchy’s Tacos isn’t the only Austin restaurant company turning to private equity during the pandemic. Hai Hospitality, the parent company of acclaimed eateries Uchi and Uchiko, announced earlier in November a “substantial investment” from Denver-based KSL Capital Partners. Financial terms were not disclosed but Hai said it would use the capital to “accelerate growth and expansion” of its restaurant brands. There are Uchis in Austin, Houston, Dallas and Denver, and another expected to open in Miami in 2021. The company also has Uchiko in Austin and Houston, the Uchiba cocktail bar in Dallas, plus a collaboration restaurant in Austin with barbecue legend Aaron Franklin called Loro that is expanding into Dallas and Houston… (LINK TO STORY)
Group looking to overturn Austin's homelessness rules sues, alleging city threw out valid petition signatures (KUT)
A group hoping to overturn Austin's rules related to homelessness is suing the city. Save Austin Now submitted signatures it gathered between February and July to overturn the city's ordinances, which passed in 2019 and relaxed bans on where people can sleep or sit in public. The group, led by Travis County GOP Chair Matt Mackowiak, ultimately wanted to put the issue to voters in November. The city clerk estimated, however, there was a 3-in-1-billion chance the group turned in enough valid signatures to force a petition-based referendum. At least 20,000 are required.
In a lawsuit filed Friday in Travis County District Court, Mackowiak and co-founder Cleo Petricek argue the clerk threw out valid signatures and that Austin is less safe than it was before the city revised the ordinances. "Every Austinite should demand a safe city. We know that Austin is less safe today than it was a year ago. We submitted more than enough signatures and we believe the courts will come to the same conclusion," Petricek said.
"The city of Austin is arrogant. They do not want to hear from residents. We demand the right to be heard and look forward to making our case.” The city said it eased the rules because they saddled homeless Austinites with fines and fees they couldn't pay, leading to arrest warrants that could jeopardize their chances of getting employment or stable housing… (LINK TO STORY)
[TEXAS]
Texas unemployment rate falls to 6.9% in October, a sign of slow and uneven economic recovery (Texas Tribune)
The Texas unemployment rate dropped to 6.9% in October, the U.S. Labor Department said Friday, an improvement from the state’s September rate of 8.3% as a new wave of coronavirus infections this month could further threaten the economic recovery.
It was the latest sign of the state’s slow and uneven economic rebound from the first wave of the coronavirus pandemic this spring, when Gov. Greg Abbott closed businesses across the state to control the coronavirus. But a rapid rise in cases first over the summer, and now this month, have critics calling for Abbott to reimpose safety restrictions.
Abbott has ruled out “any more lockdowns,” hoping that Texas staying open for in-person business will help spur the kind of economic recovery he and other Texas leaders set out for when the state was among the nation’s first to reopen businesses after major shutdowns in the spring.
So far, the strong economic rebound has not happened. After a summer of improving unemployment rates, that number spiked to 8.3% in September, and some companies that had hoped to avoid layoffs were forced to do so in October, like energy companies Chevron and Pioneer Natural Resources, which combined laid off at least 1,000 Texas workers in October… (LINK TO STORY)
Texas GOP chair wants an attorney general focused on constituents, not personal legal issues (WFAA)
The chairman of the Republican Party of Texas continued to make clear on Inside Texas Politics how he feels about two prominent Texas Republicans. While he stopped short of saying Attorney General Ken Paxton should resign as the FBI reportedly investigates him, the GOP chairman did say Paxton shouldn’t want to be a drag on the party or the office. “But it would be really good to have an Attorney General’s office that is not concerned about their own personal legal matters and they can be concerned about the matters of the people of Texas,” Allen West said on Inside Texas Politics.
The FBI is reportedly investigating whether Paxton illegally used the power of his office to help a political donor. At least eight of Paxton’s former top aides have lodged allegations against the Attorney General. In another GOP battle, West has come out against Beaumont Republican Dade Phelan’s campaign to become the next Speaker of the Texas House. Phelan, however, says he has the votes. But West has called Phelan a “Republican political traitor” after Phelan gained the support of many House Democrats. West said, in particular, he doesn’t want to see any Democrats gain any committee chair positions.
“We have an 83 – 67 majority in the Texas State House," said West. "And it seems that someone, Mr. Phelan, decided he would go across the aisle and get the support of some 25 or 30 Democrats. Those are the exact same people we worked hard to make sure they did not get a majority in the Texas statehouse, so why would we acquiesce to them?”… (LINK TO STORY)
Investigation shows Fort Hood leaders failed to protect soldiers, Army secretary says (Austin American-Statesman)
One of several investigations aimed at Fort Hood leadership is complete, and early findings point to significant failures in how officials respond to and prevent sexual misconduct among soldiers, U.S. Army officials said this week. Army Secretary Ryan McCarthy, who released a video statement about the independent review Wednesday, said Army leaders plan to publish the completed report Dec. 8.
However, McCarthy said his early takeaways from the report show Fort Hood’s sexual harassment/assault response and prevention program, also known as SHARP, is not working. “My preliminary review of the report, recent cases and recent media coverage have hardened by belief that the Army SHARP program hasn’t achieved its mandate to eliminate sexual assaults and sexual harassment by creating a climate that respects the dignity of every member of the Army family,” McCarthy said.
In August, Army officials released the names of five non-military members tasked to lead the independent investigation. The Independent Review Committee included: Chris Swecker, a lawyer and 24-year veteran of the FBI who has conducted similar independent reviews for the North Carolina state police and Winston-Salem police; Jonathan Harmon, a West Point graduate who went to the University of Texas Law School; Carrie Ricci, a lawyer for the U.S. Department of Agriculture who served nearly 22 years as an Army officer, retiring as a lieutenant colonel; Queta Rodriguez, a regional director of FourBlock, a nonprofit serving veterans, who lives in Bexar County. She served in the Marine Corps from 1991 to 2012 as an intelligence analyst and manpower operations officer; Jack White, another West Point graduate who served as a law clerk for then-appellate judge and later Supreme Court Justice Samuel Alito… (LINK TO STORY)
[NATION]
COVID-19 shots could reach first Americans by mid-December, top health official says (Reuters)
U.S. healthcare workers and others recommended for the nation’s first COVID-19 inoculations could start getting shots within a day or two of regulatory consent next month, a top official of the government’s vaccine development effort said on Sunday.
Some 70% of the U.S. population of 330 million would need to be inoculated to achieve “herd” immunity from the virus, a goal the country could achieve by May, according to Dr. Moncef Slaoui, chief scientific adviser for “Operation Warp Speed.”
Slaoui said the U.S. Food and Drug Administration (FDA) would likely grant approval in mid-December for distribution of the vaccine produced by Pfizer Inc and German partner BioNTech, launching the largest inoculation campaign in U.S. history.
The FDA’s outside advisers are slated to meet on Dec. 10 to review Pfizer’s emergency-use application for its vaccine, which the company said was found to be 95% effective against infection from the highly contagious respiratory virus.
A second pharmaceutical company, Moderna Inc, is expected to seek separate approval later in December for its COVID-19 vaccine.
Appearing on several network news shows on Sunday morning, Slaoui sketched out a timeline for getting the initial doses of the Pfizer vaccine from FDA authorization into the arms of those who will be first in line to receive it.
“Within 24 hours from the approval, the vaccine will be moving and located in the areas where each state will have told us where they want the vaccine doses,” Slaoui told NBC’s “Meet the Press.”… (LINK TO STORY)
Biden will nominate Antony Blinken as secretary of State (Politico)
President-elect Joe Biden plans to nominate longtime adviser and veteran foreign policy hand Antony Blinken to serve as his secretary of State, while picking another confidant, Jake Sullivan, for the role of national security adviser, according to three people familiar with the issue.
Linda Thomas-Greenfield, a veteran diplomat, will be nominated to serve as Biden’s ambassador to the United Nations, according to two people familiar with the nomination discussions.
The choices would put three highly experienced officials at the helm of U.S. foreign policy. Even some notable conservative voices praised the three choices Sunday evening as news of their selection broke.
Blinken, 58, is considered a moderate who is well regarded by foreign diplomats and can pass muster with Republicans in the Senate, where he will have to seek confirmation. At the same time, he’s served as an intermediary for Biden and members of the progressive community, engaging the latter on their demands for what a Biden foreign policy will look like.
Bloomberg first reported that Biden would tap Blinken as secretary of State.
Blinken’s bio reads like he was bred for a life in the diplomatic realm. He attended high school in Paris, earned an undergraduate degree from Harvard and later picked up a law degree from Columbia. Blinken’s father, Donald, also a Harvard graduate, was an investment banker who served as a U.S. ambassador to Hungary.
The younger Blinken has worked as a lawyer and (briefly) a journalist. He served on the National Security Council during the Clinton administration and has spent time on Capitol Hill, where he was Democratic staff director for the Senate Foreign Relations Committee when Biden was chairman. During the Obama years, Blinken served as deputy national security adviser and deputy secretary of State.
Those who know Blinken describe him with words like “polished,” “smooth,” and “kind,” and often add that he plays the guitar well. Blinken has been the main face of Biden’s foreign policy during the 2020 campaign, advocating for positions such as the need for the United States to rebuild alliances frayed by Donald Trump’s America First approach. Blinken has also been a leading advocate for the United States to rejoin the Iran nuclear deal… (LINK TO STORY)
Rising star mayor who championed guaranteed income loses hometown race (Bloomberg)
Stockton Mayor Michael Tubbs came into elected office on a high in 2016, winning 70% of the vote. Since becoming mayor, he put himself and his economically distressed hometown on the national map through his advocacy for progressive programs, including one of the first guaranteed income experiments in the U.S. The subject of documentaries and Daily Show appearances, particularly as cash assistance programs gained momentum during Covid, Tubbs had been a rising political star.
But this November, Tubbs’ star fell in Stockton: The 30-year-old mayor conceded the race to his Republican challenger, Kevin Lincoln, who was leading by 12 percentage points (though the tally isn’t final yet).
What changed? Some residents resented his national profile, viewing him as more committed to his own reputation than to giving attention to the city. Others objected to his progressive policies, choosing instead the candidate who was supported by the local police union and ran on a campaign to reduce homelessness and make government more efficient.
But Tubbs and his supporters also point to another factor that has become an increasingly common suspect in national and local races alike: A targeted misinformation campaign, in this case led by a local blog called the 209 Times. The blog has published damaging and often misleading or false articles about the mayor, including misstating the impact of a scholarship program he spearheaded and inflating the amount of funding the city had received to address homelessness… (LINK TO STORY)