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BG Reads 1.23.2024

BG Reads 1.23.2024

🗞️ Bingham Group Reads - January 23, 2024

January 23, 2024

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January 23, 2024

Today's BG Reads include:

✅ Mixed reactions to Art Acevedo's new role as Austin's assistant city manager

✅ BG Podcast Ep. 233 featuring Jack Craver of the Austin Politics Newsletter

✅ Charter Review Commission continues to wrestle with petition process

✅ Haley gets a Trump matchup, but now faces the Trump machine

Read on!

[CITY HALL WATCH]

🔎 Council Message Board

Today: Public Apology to Sexual Assault Survivors (2PM at City Hall)

Context: Posted Sunday by Council Member Alison Alter (District 10), this comes in response to Friday’s news of former Austin Police Chief Art Acevedo being rehired by Interim City Manager Jesús Garza to oversee the police department.

🔎 Meeting with Interim City Manager Garza re Art Acevedo Appointment (1.22.24, Posted by CM Alison Alter @5:33pm)

Dear Colleagues,This afternoon, the five of us met with Interim City Manager Jesús Garza to discuss the proposed hiring of Art Acevedo for the newly created role of Interim Assistant City Manager overseeing APD.We expressed serious concerns with Mr. Acevedo’s record at the Austin Police Department. While we agree with ICM Garza’s emphasis on the need to improve police recruitment, implement academy reforms, and increase staffing, we do not have confidence that the proposed hire will advance our shared goals.The Interim City Manager has heard all of the concerns voiced and will meet with his team on next steps in the coming days.Sincerely,CM Alison Alter (D10), CM Zo Qadri (D9), CM Paige Ellis (D8), CM Ryan Alter (D5), and CM Natasha Harper-Madison (D1)

🎙️ BG Podcast Weekly Recap EP. 233 (Week of 1.15.2024)

On this episode Bingham Group CEO A.J. Bingham and Associate Hannah Garcia wrap up the week of January 15th, 2024 in Austin politics.

Topics include:

✅ Austin Council reaction to Art Acevedo hire

✅ Former Council Member Kathie Tovo running for mayor

✅ A guest feature from Jack Craver of the Austin Politics Newsletter

LISTEN ON: SoundCloud, YouTube, Apple Podcast, Spotify

[AUSTIN METRO NEWS]

Mixed reactions to Art Acevedo's new role as Austin's assistant city manager (Austin American-Statesman)

News of Art Acevedo, a former police chief in Austin, Houston and Miami, taking a newly created interim assistant city manager position in Austin was met with mixed reactions from members of the Austin City Council and community activists.

Austin Mayor Kirk Watson

Watson in a statement said he favors additional support for the department and its officers. "Art Acevedo brings a wealth of experience and a deep understanding of the challenges facing APD. I’m hopeful he’ll be able to provide needed support for the department and help us to strengthen the relationship between City Hall and APD as well as with the community.”

District 1 Council Member Natasha Harper-Madison

Harper-Madison provided a one-word written statement about Acevedo's appointment. "No."

District 2 Council Member Vanessa Fuentes

Fuentes in a post on X, formerly Twitter, said she was surprised to learn of Acevedo’s appointment.

“I hope Acevedo understands our community’s commitment to robust police oversight, accountability, and transparency."

District 3 Council Member José Velásquez

Velásquez did not return requests for comment, nor post on X before the story first published Friday. Later, he posted on X, saying he was surprised by the hiring.

"I've spent the afternoon in conversation with colleagues & constituents, & I share my community's concerns. Austin deserves the highest level of integrity & service from its City leaders & we have a duty to continue to pursue that standard."

District 4 Council Member José “Chito” Vela

Vela, in a post on X, said he cannot support the hiring of Acevedo.

"There are too many red flags from his previous tenures as police chief, both here and in the other cities he's served," Vela said.

District 5 Council Member Ryan Alter

Alter in a statement said he was very surprised by the news and shares "many of the concerns expressed throughout the community."

"I want to do everything I can to make our police department the best in the nation, and I am still trying to understand how this hire at this time does that."

District 6 Council Member Mackenzie Kelly

Kelly told the Statesman she was initially surprised to learn of the appointment, but is excited to see Acevedo in the role.

"I'm very much looking forward to his skills, knowledge, abilities and experience to help get APD back to where it needs to be."

District 7 Council Member Leslie Pool

Pool said in a statement a major goal for her this year is reaching a four-year police contract.

"I support the addition of Art Acevedo to the City Manager's leadership team to help guide this important effort."

District 8 Council Member Paige Ellis

Ellis, in a post on X, said she was "shocked by this decision, as Acevedo oversaw a department that caused rape kits to go untested for years and entrapped protestors, among other issues."

"I told Jesus Garza this is a bad call, and I guarantee that if it had come before council it would have a different outcome."

District 9 Council Member Zohaib “Zo” Qadri

Qadri in a statement said, since Acevedo left Austin in 2016, "voices in Austin pushed not just for more efficient responses with public safety – but for police oversight, accountability, and transparency."

"Despite city council not being part of the hiring process, I remain committed to working with Mr. Acevedo as we work towards a long-term APD contract that takes the voter's voices, and concerns, into account. My office has already received calls demanding assurances that problems like untested rape kits wont continue in his new role back in Austin, not just to assuage Council - but concerned Austinites."

District 10 Council Member Alison Alter

Alter said in a statement that [the] announcement came as a shock and fears that it "erodes years of work to rebuild trust and to keep our community safe."

"I met with survivors and advocates today and this announcement is retraumatizing to many, especially pending the upcoming planned public apology to survivors as we mark the two-year anniversary of the settlement of the class action lawsuits by those whose cases were mishandled under Acevedo’s watch."… LINK TO FULL STORY

New cultural districts could thrive with EDD’s planned framework (Austin Monitor)

A pair of long-gestating city initiatives have entertainment and arts proponents eyeing the many new areas around the city that could become cultural districts in the next handful of years. Once enacted, the combination of economic incentives, infrastructure support and planning considerations could make it easier for cultural uses to cluster even as property values continue to grow throughout Austin.

What’s at play is the implementation of a change in land use policy that makes it easier to open music venues and creative spaces in all parts of the city, to the level of a sevenfold increase in the number of lots that could now hold a commercial live music space.

Meanwhile, staff in the Economic Development Department expect to present a framework to City Council this summer that could spell out the economic and cultural components of other districts around the city based on a high concentration of music and arts uses or other businesses that bring a distinct flavor to a small geographic area. That framework would make it far easier for community members to petition the city to create a cultural district and would likely lead to a rapid increase from the four such districts already established... (LINK TO FULL STORY)

Charter Review Commission continues to wrestle with petition process (Austin Monitor)

As the Charter Review Commission works to prepare its recommendations to City Council, a discussion at the most recent meeting showed that its members are still struggling with what changes they will recommend for the city’s petition process.

Currently, any citizen or group can get their suggested policy change on the ballot by collecting 20,000 signatures. That’s true for both changes to the city charter, as mandated by state law, as well as for changes to the city code, after voters lowered the requirement from 10 percent (or about 60,000 signatures) in 2012. But direction from City Council has pushed the commission to take a look at revising the process… (LINK TO FULL STORY)

Click here for this week’s Austin public meeting meeting times and agendas.

[TEXAS NEWS]

Supreme Court allows federal agents to cut razor wire Texas installed on US-Mexico border (Associated Press)

A divided Supreme Court on Monday allowed Border Patrol agents to resume cutting for now razor wire that Texas installed along a stretch of the U.S.-Mexico border that is at the center of an escalating standoff between the Biden administration and the state over immigration enforcement.

The 5-4 vote clears the way for Border Patrol agents to cut or clear out concertina wire that Texas has put along the banks of the Rio Grande to deter migrants from entering the U.S. illegally. Some migrants have been injured by the sharp wire and the Justice Department has argued the barrier impedes the U.S. government’s ability to patrol the border, including coming to the aid of migrants in need of help.

None of the justices provided any explanation for their vote. The one-page order is a victory for the Biden administration while the lawsuit over the wire continues… (LINK TO FULL STORY)

Thomas Gleeson tapped to chair Public Utility Commission of Texas (Office of the Texas Governor)

Governor Greg Abbott has appointed Thomas Gleeson to the Public Utility Commission of Texas (PUC) for a term set to expire on September 1, 2029.

Additionally, the Governor has named him Chair of the PUC. The PUC regulates the state's electric, water, wastewater, and telecommunications utility industries, implements respective legislation, and offers customer assistance in resolving consumer complaints.

“Thomas Gleeson’s longtime service at PUC and wealth of knowledge make him the ideal choice for Chair of the Commission,” said Governor Abbott. “As a seasoned leader with over 15 years of experience at the agency, including serving as Executive Director and Chief Operating Officer, Thomas will help ensure Texans and Texas communities have the utility services they need. I thank Kathleen Jackson for her time serving as Interim Chair of the PUC, and I look forward to working with Thomas as we improve utility services in Texas and build an even better state for every Texan.”

Thomas Gleeson of Pflugerville is the Executive Director of the PUC, a position he has held since December 2020. He has worked for the PUC for over 15 years in various roles including, Chief Operating Officer, Director of Finance and Administration, and as a fiscal project manager. He is a graduate of the Governor’s Executive Development Program at the Lyndon B. Johnson School of Public Affairs at The University of Texas at Austin.

Additionally, he is the former chairman of the City of Pflugerville Finance and Budget Committee and the First United Methodist Church of Round Rock Finance Committee. Gleeson received a Bachelor of Business Administration from Southwestern University and Master of Public Administration from The Bush School of Government & Public Service at Texas A&M University… (LINK TO FULL STORY)

How Dallas multilevel marketer Neora beat the government’s pyramid scheme charges (Dallas Morning News)

After a yearslong legal fight and roughly $23 million in legal fees, a Dallas-area-based beauty and wellness multilevel marketing company has come out victorious against allegations of operating a pyramid scheme from the Federal Trade Commission. The regulatory agency sued Neora and its co-chief executive officer, Jeff Olson, in 2019, alleging the global company’s brand partners, or independent contractors, receive greater compensation from recruiting new brand partners than they earn from retail sales. The win attracted attention from across the industry, as it was the first time since the 1970s that a direct-selling company defeated the FTC’s pyramid scheme claims in a court trial. In Texas, independent contractor sales like Neora’s make up a $4.3 billion sector, according to the Direct Selling Association. The ruling emphasizes the importance of protecting the rights of legitimate direct-selling companies, Olson’s co-chief executive officer, Deborah Heisz, said.

“This is a David versus Goliath thing,” Olson said of the legal battle between Neora and the FTC. “They have unlimited resources, and they have no consequences.” Neora, which is based in Farmer’s Branch, sells skin care creams, supplements and other wellness products through representatives they call brand partners. Its structure is not unlike the beauty company Mary Kay, where independent contractors get discounts on beauty products and can also sell the items to earn a commission.

The brand partners can also recruit, train and mentor other brand partners to earn commissions based on their sales. That model comes into question when “Your income would be based mostly on how many people you recruit, not how much product you sell,” according to the FTC. Government crackdowns and pyramid-scheme investigations have ended multilevel marketing companies such as Carrollton-based United Sciences of America and Fortune Hi-Tech Marketing while major industry forces such as LulaRoe Fashions have taken major hits from government lawsuits… (LINK TO FULL STORY)

[US/WORLD NEWS]

Haley gets a Trump matchup, but now faces the Trump machine (New York Times)

With only about 48 hours left to campaign in the New Hampshire primary, Nikki Haley finally got the two-person race she wanted. It might not live up to her expectations.

For months, it has been an article of faith among Ms. Haley’s supporters and a coalition of anti-Trump Republicans that the only way to defeat Donald J. Trump was to winnow the field to a one-on-one contest and consolidate support among his opponents. That wishcasting became reality on Sunday afternoon, when Gov. Ron DeSantis of Florida ended his White House bid. And yet, as the race reached the final day, there was little sign that Mr. DeSantis’s departure would transform Ms. Haley’s chances of winning. Ms. Haley quickly learned that the role of last woman standing against Mr. Trump meant serving as the last target for a party racing to line up behind the former president.

Two former rivals in the race — Senator Tim Scott of South Carolina, and Mr. DeSantis — both endorsed the former president. The head of the party’s Senate campaign arm proclaimed Mr. Trump to be the “presumptive nominee.” And Mr. Trump’s campaign strategists vowed that she would be “absolutely embarrassed and demolished” in her home state of South Carolina, the next big prize on the calendar. Campaigning across New Hampshire on Sunday, Ms. Haley and her supporters celebrated the DeSantis campaign’s demise.

“Can you hear that sound?” she asked more than 1,000 gathered in a high school gymnasium in Exeter, N.H., her best-attended event in the state. “That’s the sound of a two-person race.” Thirty-five miles north, in Rochester, N.H., Mr. Trump told his crowd to expect a victory so decisive it would effectively end the primary.

“That should wrap it up,” he said. Ms. Haley’s supporters in the state said they were feeling that pressure. Some worried aloud that she had pulled punches with Mr. Trump for so long that her aggressiveness in the primary’s final weekend would be inadequate to persuade flinty New Hampshire voters that she had enough fight in her to win against the brawling former president. One Republican activist backing Ms. Haley said he kept his lawn sign in his garage because Mr. Trump’s victory felt inevitable. Another Haley backer, Fergus Cullen, a former chairman of the New Hampshire Republican Party, described his support for the former governor as unenthusiastic. He said he could not bring himself to defend Ms. Haley on social media or lean on friends and family to vote for her... (LINK TO FULL STORY)

For property investors, the price of homes is still not right (Wall Street Journal)

Investor purchases of single-family homes tumbled 29% last year, as higher interest rates and record home prices compelled even deep-pocketed investment firms to pull back.

Businesses large and small acquired some 570,000 homes in 2023, down from 802,000 in 2022, according to national research from Parcl Labs, a real-estate data and analytics firm. Fourth-quarter investor purchases of 123,000 represented the lowest quarterly total in the eight quarters tracked by Parcl.

In a separate analysis of sales for the first nine months of last year, Realtor.com said 2023 was on track for the largest annual drop in investor buying activity in at least 20 years.

The decline in business purchases mirrored falling sales activity in the overall housing market. Existing-home sales of any kind were down 19% last year, hitting the lowest levels seen since 1995, the National Association of Realtors said last week… (LINK TO FULL STORY)