BG Reads | News You Need to Know (February 23, 2023)

News
Written By AJ Bingham

[AUSTIN city hall]

[AUSTIN METRO]

Austin Energy shares recovery, emergency preparation plans (Austin monitor)

Leaders of Austin Energy have started to move forward in the aftermath of the winter storm earlier this month that left hundreds of thousands of Austinites in the dark for days at a time. The next steps outlined include streamlining communications, better assessing the extent of power outages, and determining the cost and timelines for burying power lines.

The entire City Council gathered for Tuesday’s meeting of the Austin Energy Utility Oversight Committee to hear a progress update from AE’s leadership and ask questions about the utility’s forthcoming after-action report on the storm, which layered nearly an inch of ice on the area. The weight of the ice damaged countless drought-stricken trees, bringing down power and communications lines throughout the city. AE General Manager Jackie Sargent said at the worst moments of the crisis, nearly 174,000 homes were without power.

Other steps AE plans to take include conducting an audit of its vegetation management practices, adding staff to its emergency management team and analyzing how utilities in Orlando and Jacksonville, Florida, and Long Island prepare for disasters and manage restoration of power.

Sargent said there are other steps that will result from the after-action report, which Council is expected to receive or be updated on at its April 11 meeting… (LINK TO FULL STORY)

Vela urges TxDOT to cap parts of I-35 through Austin (Austin monitor)

“This is a once-in-a-generation opportunity,” Council Member Chito Vela told his colleagues at Tuesday’s City Council work session, referring to cap-and-stitch opportunities for an expanded Interstate 35 through Austin. Vela had prepared a slideshow for an earlier meeting that was canceled, but he put it to good use on Tuesday, impressing Mayor Kirk Watson, who commented on his preparedness.

Vela envisions an I-35 covered with land for parks, buildings and transit. He also envisions the additional tax money that would be generated by any businesses located on top of the capped highway. Council members Vanessa Fuentes, José Velásquez, Ryan Alter and Zo Qadri have co-sponsored Vela’s resolution.

Any number of individuals and organizations have come out against the state’s plan for expanding the highway, including neighborhood groups such as the Hyde Park Neighborhood Association. However, it’s not clear whether the city could just say no, because the Texas Department of Transportation is in charge of planning and building the extra lanes as well as eliminating some crossings Austinites have relied on for years to help them travel between east and west… (LINK TO FULL STORY)

Joe’s Bakery Honored with a Legacy James Beard Award (Austin monthly)

Every year, the prestigious James Beard Foundation honors just six restaurants around the country with an America’s Classic Award, given to “locally owned restaurants that have timeless appeal and are beloved regionally for quality food that reflects the character of the community.” At this year’s ceremony on June 5th, an Austin institution will bask in the accolades as Joe’s Bakery on East Seventh takes the honor… (LINK TO FULL STORY)

Austin ISD officials release details about $2.44B 2022 bond program kickoff (Community Impact)

Officials with Austin ISD met Feb. 22 at Norman-Sims Elementary School to release the schedule to kick off the $2.44 billion bond program voters approved in 2022.

"This is the largest and most comprehensive project in Austin ISD history," said Michael Mann, executive director for construction management with Austin ISD. "With over 70% voter approval, we have been given the power to improve the learning environments for the students, faculty and staff. Our responsibility now is to deliver."

Mann said officials with Austin ISD have been "working tirelessly" on plans for the bond, which include the modification of four campuses to move away from the open-concept design, as well as 25 planned school modernizations. The district anticipates it will complete the majority of these projects within five years and deliver all of them within six years… (LINK TO FULL STORY)

Metals co. in semiconductor supply chain plans big expansion in Hutto (Austin Business Journal)

A manufacturing company that is one of Hutto's newest employers, but already one of its largest, is eyeing a big expansion, buoyed by the boom in the semiconductor sector.

Just a couple years after Paradigm Manufacturing Inc. moved into the fast-growing suburb northeast of Austin, the company is gearing up to invest $8 million to add another 60,000 square feet and 50 jobs. That would be on top of the 100,000 square feet and 250 employees it has in the business and innovation park at 1149 New Technology Blvd.

Paradigm — which rebranded from Paradigm Metals Inc. upon its move to Hutto from Pflugerville — does computerized numerical control machining, precision metal fabrication and clean room assembly.

Its biggest client is Santa Clara-based Applied Materials Inc., a maker of manufacturing equipment that is a huge component in the global semiconductor supply chain and a company with an already sizable Austin presence. Applied Materials itself continues to eye a billion-dollar expansion to Hutto… (LINK TO FULL STORY)

Hawaiian Airlines to increase flights to Austin this summer, switching to red-eyE (KXAN)

Planning a tropical getaway this summer? Hawaiian Airlines may be able to help.

The airline is increasing the frequency of its Austin-Honolulu route. Between May 26 and Sept. 5, the route will be served four times a week, up from the current three weekly flights.

Flights currently operate on Monday, Wednesday and Friday. The additional service will be offered on Saturdays… (LINK TO FULL STORY)

[TEXAS]

Gov. Greg Abbott says Texas will revamp economic development program after property tax incentive expires(Texas Tribune)

Gov. Greg Abbott on Wednesday sought to reassure business leaders that state lawmakers would act during this legislative session to improve the state’s economic development tools after letting a popular corporate tax-break program expire last year.

He also said Texas was already feeling the impact of losing the program, recently missing out on a “massive” corporate project to New York.

Addressing the Greater Arlington Chamber of Commerce, Abbott appeared to give his most extensive public comments yet on the future of economic development in Texas after the end of the so-called Chapter 313 program. Abbott nodded to the politically charged nature of the topic by bringing it up as the “elephant in the room.”

“Chapter 313 is gone, and that said, there is a desire in the Capitol to make sure Texas does remain No. 1 for economic development,” Abbott said, “and we’re working on — and others in the Capitol are working on — to ensure that we will have economic development tools going forward that may not exactly replicate 313” but will keep Texas No. 1 for economic development.

Abbott did not detail what those new tools would be, but his comments are a boost to business leaders who are trying to bring back Chapter 313 in some form. The program was intended to lure large companies to Texas by discounting local school district property taxes for them, but it had become beset with bipartisan accusations of “corporate welfare.” In 2021, the state Senate declined to consider a bill extending the program, the first time in its 20-year history that legislators decided not to renew it… (LINK TO FULL STORY)

University of Texas System pauses new diversity, equity and inclusion policies (Texas Tribune)

The University of Texas System’s board of regents said Wednesday it has put a pause on all new policies that promote diversity, equity and inclusion at its 13 university and health campuses and asked all school leaders to provide a report on their current DEI policies.

UT System board Chair Kevin Eltife said that while the system strives to promote diversity among its students and faculty, “certain DEI efforts have strayed from the original intent to now imposing requirements and actions that, rightfully so, has raised the concerns of our policymakers around those efforts on campuses across our entire state.”

Eltife’s comments, which were first reported by the Austin American-Statesman, did not specify which DEI efforts he considered to cross a line. The UT System did not immediately respond to further questions… (LINK TO FULL STORY)

As Gov. Abbott attacks diversity hiring programs, Biden moves to shore them up (Houston Chronicle)

As Gov. Greg Abbott fights against diversity hiring programs in Texas colleges and state agencies, President Joe Biden and the federal government have launched an all-out defense of the very same programs, promising to spread them further. In a letter earlier this month to colleges and state agencies Abbott’s chief of staff Gardner Pate warned that diversity hiring programs have the potential to violate employment law, if they favor some demographic groups to the detriment of others. “Rebranding this employment discrimination as 'DEI' does not make the practice any less illegal,” Pate warned.

In the last three weeks: The U.S. Department of Education’s Office of Civil Rights has issued guidance to schools and colleges defending the legality of diversity, equity and inclusion (DEI) programs. Biden has issued new executive orders deepening the federal government’s commitment to DEI. The federal government’s chief human resources arm has released its first-ever report on diversity across the entire federal workforce. Biden's pushback comes as conservative Republicans nationwide have ramped up their attacks on diversity, equity and inclusion programs, targeting colleges that they say have manipulated those programs to discriminate against job candidates… (LINK TO FULL STORY)

With Pappas set to lose its place in Hobby Airport, CEO rips 'flawed' concessions contract process (Houston Chronicle)

With Pappas Restaurants set to lose its footprint at Hobby Airport, the company's chief executive officer went to City Hall on Tuesday to question the selection process for the contract, which he argued was flawed. City Council will consider giving a 10-year, $470 million contract to Areas, a subsidiary of the Spain-based Areas SAU, at its Wednesday meeting, ending Pappas' run in the airport. The lucrative deal comes after the city has been seeking airport proposals for three years, including three separate rounds of bidding, an unusually protracted process to award a contract. Several City Council members tagged this contract on Wednesday, delaying a vote until next week's meeting on March 1.

Pappas currently has several of its brands in the airport. It was part of a group called 4 Families of Houston that bid to continue its presence there for the next decade. Chris Pappas, the company's CEO and president, hired city lobbyists and began pressing council members about the contract last week. His team distributed a 24-page packet of materials to elected officials making its case, stressing the company's local roots and track record of success at the airport. The packet also zeroed in on the complicated procurement process, which it described as "flawed." That process began with an initial invitation for proposals in 2019, which the city canceled just after the onset of COVID-19. The cancellation came after it had asked bidders for their best-and-final offers, usually a last step to distinguish close-scoring bids. The city put out a new request for proposals in December 2021. That round went to two best-and-final offers before the city canceled it in September 2022 "due to comparatively close scoring." The city put out a third call for proposals in October 2022, this time with an expedited timeline, asking interested companies to submit proposals in four weeks. Several interested bidders asked for an extension, but the city did not grant one. The city once again asked for best-and-final offers in December… (LINK TO FULL STORY)

[NATION]

U.S. to Expand Troop Presence in Taiwan for Training Against China Threat (Wall street Journal)

The U.S. is markedly increasing the number of troops deployed to Taiwan, more than quadrupling the current number to bolster a training program for the island’s military amid a rising threat from China.

The U.S. plans to deploy between 100 and 200 troops to the island in the coming months, up from roughly 30 there a year ago, according to U.S. officials. The larger force will expand a training program the Pentagon has taken pains not to publicize as the U.S. works to provide Taipei with the capabilities it needs to defend itself without provoking Beijing.

The number of American troops, which has included special-operations forces and U.S. Marines, has fluctuated by a handful during the past few years, according to Defense Department data. The planned increase would be the largest deployment of forces in decades by the U.S. on Taiwan, as the two draw closer to counter China’s growing military power.

Beyond training on Taiwan, the Michigan National Guard is also training a contingent of the Taiwanese military, including during annual exercises with multiple countries at Camp Grayling in northern Michigan, according to people familiar with the training.

The expanded training, both in the U.S. and in Taiwan, is part of a gathering U.S. push to help a close partner prepare to thwart a possible invasion by China. The U.S. officials said the expansion was planned for months, well before U.S.-China relations plummeted anew this month after a suspected Chinese spy balloon traversed North America for more than a week before being shot down by the Air Force.

With a decades-old military buildup gaining momentum, China’s People’s Liberation Army is increasingly engaging in aggressive maneuvers, sending planes and ships near Taiwan. Following Russia’s full-on invasion of Ukraine last year, the Pentagon has redoubled efforts to get Taiwan to adopt what some military specialists call a “porcupine” strategy, focusing on tactics and weapons systems that would make the island harder to assault… (LINK TO FULL STORY)

AJ Bingham
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