ATX PULSE 7/19/24: ATX-Based Crowdstrike Causes Global Outage // ATX-Based Saronic Raises $175M at $1B Valuation // Climate Bond Work Continues

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ATX Pulse

Everything YOU NEED TO KNOW about Austin.

Friday, July 19, 2024

By Matt Mackowiak

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Today’s Weather: H: 94° / L: 74°. Latest forecast from Fox 7 Austin’s Zack Shields here. More from KXAN here.

TOP NEWS

~ “Local Austin agencies monitoring global Microsoft outage,” CBS Austin’s Abigail Velez — “Global tech outages are causing tech disruptions across the world-- airlines and businesses are scrambling to respond.

The global computer outage affecting airports, banks and other businesses on Friday appears to stem at least partly from a software update issued by major US cybersecurity firm CrowdStrike, experts told CNN.

CrowdStrike, which is headquartered in Austin, told customers early Friday that the outages were caused by “a defect found in a single content update of its software on Microsoft Windows operating systems," according to a post on X from CEO George Kurtz.

The people affected are Microsoft 365 users-- including some local Austin agencies.

According to a City of Austin spokesperson, some city entities have been affected by the outage, but they did not specify which ones.

The City said the 911 Call Center was not affected. According to the spokesperson, when the City was notified about the outages, they worked to ensure the public safety departments were stable.

A Dell Seton Medical Center spokesperson told CBS Austin Friday morning, some Austin medical centers may be affected by the outage. Dell Seton said the main issue may be accessing patient records; they added, this should not affect patient care.

The Austin-Bergstrom International Airport experienced a high volume of cancellations and delays Friday morning, according to a spokesperson.

CapMetro is also reporting delays on their routes throughout Friday.

In a statement to CBS Austin, CrowdStrike said in part, "This is not a security incident or cyberattack. The issue has been identified, isolated and a fix has been deployed."“ CBS Austin

~ “Texas DPS closes Driver License Offices because of ‘technical issue’; other state agencies also impacted,” KVUE’s Morgan McGrath — “Texas Department of Public Safety (DPS) Driver License Offices throughout the state are temporarily shut down Friday morning because of a "technical issue." 

According to a social media post from DPS, IT teams are working to resolve the issue and customers have been informed of the problem. 

At the moment, there is no timeframe for when the offices will open back up. Customers are told to check the DPS website and social media pages for any additional updates. 

Meanwhile, the official X account for the Texas government said some other state agencies are also being impacted by the CrowdStrike issue, though the post did not elaborate on which offices are being affected.

"Some Texas.gov online services are also impacted and you may not be able to complete transactions at this time," the post said. "CrowdStrike is working on a fix and has stated that outages are not the result of a cybersecurity incident."

Texas.gov added that residents should monitor its communication channels for updates.” KVUE

THE BLOTTER

~ “APD searching for man accused of exposing himself inside Walmart,” KXAN’s Abigail Jones — “Austin Police are working to identify a man they say is the suspect in an indecent exposure case that happened at a Walmart last month.

The APD Sex Crimes Unit said it happened at the Walmart at 9300 South IH-35 Svrd. on June 15 around 11:44 a.m.

According to APD, he exposed himself inside the store.

He is described as a white male, 30-40 years old, 5’8″ to 5’10” in height, and had a brown beard.

He was last seen wearing a short-sleeve, fishing style shirt, shorts, sunglasses hung around his neck, and a hat with yellow text that was possibly a Cabela’s hat.

Anyone with any information should contact the Austin Police Department at 512-974-5547. You may submit your tip anonymously through the Capital Area Crime Stoppers Program by visiting austincrimestoppers.org or by calling 512-472-8477. “ Full story here (including reward info) » KXAN

CITY HALL

~ “2 APD chief finalists, should there be more?” KXAN’s Nabil Remadna — “Who will be the next police chief for the Austin Police Department?

The city has narrowed the list down to two final candidates, Lisa Davis who is an Assistant Police Chief with the Cincinnati Police Department, and Chief Jeffrey Norman with the Milwaukee Police Department.

“Public safety is probably the biggest issue in any city,” said Austin’s NAACP President, Nelson Linder.

Linder has seen a number of APD police chiefs come and go over the years, his top priority is having someone in charge who puts the city first.

“Let’s make this city as safe as possible and as fair as possible to everybody, that is the big picture,” Linder said.

This latest search went from more than 30 candidates down to two finalists.

“It is not perfect, it is not imperfect,” said Linder about the process to find a chief. “I think it is in the middle. I think we got some good candidates, but I think if they (Norman and Davis) are the finalists, then they are the finalists.”

Kathy Mitchell, a senior advisor with Equity Action, reviewed the names of those who applied for the chief’s opening when the list was released.

“I was very happy that the city released all of the candidates,” said Mitchell.

Mitchell has questions and concerns about how we ended up with just two finalists though.

“I think the process has been deeply flawed, but it can be resurrected, it can be fixed,” said Mitchell.

She was hoping for four or five candidates to eventually meet the public.” Read the full story » KXAN

~ “Austin City Council takes step toward initiating climate bond election — here’s what’s new,” Austin American-Statesman’s Ella McCarthy — “A majority of the Austin City Council wants voters to consider a bond package for climate-related infrastructure projects no later than November 2026, and on Thursday the council took a step toward getting the item on a future ballot.

The city's governing body approved a resolution directing city staff to come back to the City Council with two large proposals: a climate bond package and a climate investment plan. The City Council would need to approve both of those items at a later date before further action occurs.

The bonds in question would be general obligation bonds, which can be issued to taxing jurisdictions, like cities and counties, to pay for things like major capital improvement projects that would not be able to be funded through city revenue. These bonds are approved by voters and are paid back over time through city-collected property taxes.

What exactly these climate projects will include is far from being finalized, but the initial direction of the City Council, as outlined in the resolution approved Thursday, includes land acquisitions, local and solar battery storage, flood mitigation and tree planting.

There has been previous debate among members of the City Council on when a climate bond election should occur as the region continues seeing increased climate-related disasters.

While Council Member Mackenzie Kelly was the only one to formally vote "no" on the resolution, other council members who voted "yes" expressed their disappointment about not moving faster on bonds to complete at least some of the priorities already identified by the City Council.

Council Member Alison Alter voiced concerns about the dwindling of past bond dollars for things like land acquisition, saying there could have been smaller bond packages in the $100 million to $200 million range this year to pay for land acquisition and solar infrastructure that would have served as a stopgap until 2026.

"It is very disheartening to hear that we do not have funding available for land acquisition until 2027 at best," Council Member Vanessa Fuentes said.

Austin Mayor Kirk Watson pointed out during Thursday's meeting that although the resolution calls for an election to be held no later than 2026, "that doesn't mean it has to be ’26."

Even if a bond election occurred in 2025, an idea that was brought up Thursday and would be viable under the proposal, Fuentes said, "Ultimately, I do think we've lost an opportunity here."“ AAS ($)

~ “City of Austin exploring creation of public bank,” KVUE’s Jessica Cha — “Austin City Council members are starting the process of exploring the idea of creating a "public bank".

If you've never heard of that -- it's because only one exists in the U.S.

Other cities like Philadelphia, San Francisco, and Los Angeles are currently trying to establish their own.

"A public bank is a bank that's owned and operated by a public institution,” said Councilman Zo Quadri at Thursday’s city council session. “With the intent of this item, that would be the City of Austin and it would operate in the public interest."

Qadri presented the item in hopes of cheaper banking services and using profits for community projects. But how's it different from a traditional bank?

“It would be the governance, you know? Who is the bank responsible to,” said Matt Patton, the Executive Vice President at Angelou Economics.

According to Patton, traditional banks are typically funded through private shareholders that you’re responsible for paying back at a certain time, amount, and way. However, a public bank would be owned by and for Austin.

Patton says there could be more flexibility over interest rates, loan payment terms, and choosing what projects to fund.

“They’re able to extend those offers to folks that otherwise might not be able to have access to capital to work on those projects," Patton said. “In that way, it could really help a local economy grow."

The only operating public bank in the United States is in North Dakota. The Bank of North Dakota was established around 1920, at a time when rural farmers felt disadvantaged by larger banks.” KVUE

OTHER NEWS

~ “Pflugerville house fire possibly caused by electric shooter, fire department says,” CBS Austin’s Tara Brolley — “The Pflugerville Fire Department responded to a house fire early Friday morning that was possibly caused by an electric bike or scooter.

It happened in the 2800 block of Pedernales Falls Drive.

All occupants were able to safely evacuate. The department said the house had functioning smoke alarms that alerted them of the danger.

“The fire was contained and extinguished in the garage and the cause is under investigation,” the department said. “Near the area of origin was an electric bike/scooter that may have been a contributing factor. Lithium ion battery fires have become more common in recent years.”

More information on lithium-ion battery safety can be found here.” CBS Austin

BUSINESS NEWS

~ “Austin drone boat startup Saronic raises $175M at $1B valuation,” Austin Business Journal’s Brett Wistrom — “The South China Sea, the Black Sea, the Strait of Malacca and the Red Sea. You hear about these far flung places mostly on the news. They are dangerous and contested areas often dozens, if not hundreds, of miles out to sea that, when disrupted, can cost lives, money and even spark wars.

So the U.S. is always looking for new ways to keep tabs on maritime activity. And an Austin startup has found a promising way to assist.

Saronic Technologies has developed three types of drone boats that can be dropped into the water from the sky or deployed from beaches or larger boats. They can then operate in fleets that spread out and provide communication hubs, surveil other ships with advanced artificial intelligence and carry kinetic weapons, such as missiles, and non-kinetic weapons, like devices for cyber attacks and electrical disruptions.

Its primary customers are the U.S. Navy and its allies.

The company said July 19 that has raised a $175 million series B funding round and revealed that it is now valued at $1 billion, giving it unicorn status in startup parlance.

The big investment was led by Bay Area venture capital giant Andreessen Horowitz. Its earlier investors also reupped their commitments. Those firms include Austin-based 8VC, as well as notable tech investor Elad Gil and San Francisco-based firms Caffeinated Capital and NightDragon.

"We are creating an entirely new capability for the maritime domain, one that delivers naval power without the costs and delays of a shipyard," Saronic CEO Dino Mavrookas stated. "As the future of naval warfare will rely on manned and unmanned teaming, we must build solutions that easily integrate into the existing fleet and can be produced at scale to meet any emerging threat."

Mavrookas, a former Navy SEAL, co-founded the company with Doug Lambert, Vibhav Altekar and Rob Lehman.

The fresh influx of money comes a few months after Austin Inno reported that the startup had begun expanding its manufacturing and research-and-development facilities in South Austin and had planned dozens of new hires.

Saronic also said it will expand domestically and internationally. That includes its Austin manufacturing spaces, as well as its research and development and payload integration with government and commercial partners.” ABJ ($)

~ “Travis Club sells $90M in homesites, infrastructure construction underway,” Austin Business Journal’s Cody Baird — “A luxury housing development on the shores of the Colorado River has pulled in more than $90 million, all before a single home has been built.

At Travis Club, a sprawling 1,500-acre housing development being co-developed by California-based real estate developer Haas & Haynie Corp. and Austin-based real estate investment firm Castle Hill Partners Inc., about three-quarters of the homesites available in the project’s first phase have been sold, according to an announcement. And, with infrastructure construction is underway, phase two homesites will soon be available.

Travis Club, located near Briarwood west of Austin, will feature 274 single-family lots and 223 villa units, listed between $800,000 and $3 million, according to previous reporting. Lots range from half an acre to about three acres, and the community will have an 18-hole golf course and more than 10,000 linear feet of waterfront.

Thus far, 77 out of 106 homesites in the gated community’s first phase have been sold, according to the announcement. Now that infrastructure construction is underway, buyers will be able to begin home construction in 2025, with a goal of having move-in ready homes in late 2026 or early 2027.

Moreland Properties is the brokerage group for the remaining homesites in the first phase, and Heritage Title Co. and Prominent Title are the title companies of record.

Travis Club’s second phase will consist of 140 homesites that a Travis Club representative said would be available for purchase starting in late summer or early fall this year. Final pricing on those homes has not been set but will be in-line with the first phase’s $800,000 to $3 million range. Construction of the second phase homes is expected to begin in mid-2025.

Haas & Haynie is a land development company founded in 1898. The firm develops high-end resort and residential communities, including projects in Scottsdale, Arizona; Jackson Hole, Wyoming; San Martin, California; and in the Mauna Kea Resort in Hawaii.

Castle Hill Partners is a real estate developer and investment firm with projects that include a 2,136-acre private golf and mountain community in Nevada and master-planned communities in the Dallas and Houston areas.” ABJ ($)

~ “Chuy’s likely won’t be an Austin-run company soon,” Austin Business Journal’s Sahar Chmais — “The colorful and weirded-out Chuy's restaurants will alway be Austin-born, but will they be Austin-based after restaurant giant Darden buys the chain for $605 million? Probably not.

“We will likely need to consolidate to Orlando,” said Jessica Dinon, a media representative for Darden, about what will happen to the Chuy’s headquarters. The Tex-Mex chain has been run from a relatively small building near Zilker Park, with CEO Steve Hislop at the helm since 2007.

Where the back office will be is an important question to ask. Sometimes, when big brands buy a local business, the longtime brain trust continues to call the shots. See Alamo Drafthouse and Sony for the most recent example. Other times, the local brand is commandeered and largely disconnected from its hometown. Refer to Schlotzsky's.

Hislop did not respond to a request for comment, and a Chuy's spokesperson declined to comment. But Hislop said this in an announcement: "Darden shares many of our same core values, particularly our operating philosophy and strong team member cultures. Together we will accelerate our business goals and bring our authentic, made-from-scratch Tex-Mex to more guests and communities."

In the short term, there will be no changes made, Dinon said, but added it’s too early to determine what the acquisition will mean for Chuy’s. One thing is for certain: a lot more Americans can expect to be introduced to the beloved Austin brand in the coming years.

The company was already in expansion mode with Austin leaders, and Orlando-based Darden Restaurants Inc. wants to take it to the next level.

In a nutshell, Darden seems to want to make Chuy's as ubiquitous as some of its other brands, such as Olive Garden, Cheddar's Scratch Kitchen and Ruth's Chris Steak House.

The $605 million acquisition is expected to close in the next four months. After seeing other Austin-born brands, such as sandwich chain Schlotzsky's, lose their connections to the city in which they're born, Austinites quickly took to social media to hold vigil in the comments section about the acquisitions news of the iconic Tex-Mex restaurant that opened in 1982.” ABJ ($)

SPORTS

~ TEXAS FOOTBALL: “What the Texas A&M Aggies said in Dallas about playing the Texas Longhorns,” Austin American-Statesman’s Cedric Golden — “Texas A&M junior left tackle Trey Zuhn bleeds 12th Man blood.

His parents attended school there.

Grandparents too.

So it came as a surprise that he told reporters at SEC Media Days that as a kid growing up in Fort Collins, Colo.,  he had some Longhorns memorabilia in the house.

That is, until he explained it.

“I actually have a Longhorn hanging in my room. It happens to be upside down,” he said, drawing laughter. “Don’t let a referee in there.”

I guess the word it out that the Aggies hate the Horns.

No real news there.

When the rivals resume their century-old rivalry on Nov. 30 in College Station, it will be the most watched college football game of the weekend, a return to the old days for the fan bases but a new experiences for others.

"I was here for four years,” said first-year head coach Mike Elko, who served as a defensive coordinator on Jimbo Fisher’s staff before leaving to take the head coaching job at Duke. “We didn't play Texas at all. It was very clear to me what our fans and alumni thought of the university. Now that we're playing it, we're in the same conference again, that's something that means an awful lot to Texas A&M people so it means a lot to our program.”

Zuhn grew up hearing about the rivalry. Now he will get to experience on the field first-hand.

"Being at any game at Kyle Field is an amazing experience, especially with the Texas game," he said. "I can't wait for it. The crowd, they're going to be at 110%. Everyone has bought in for it. The buzz is crazy. I just can't wait to get out there and win."

The hatred goes both ways of course.” Read the full story here » AAS ($)

~ TEXAS FOOTBALL: Golden: “Steve Sarkisian says SEC coaching lessons will come in handy for Texas in 2024,” Austin American-Statesman’s Cedric Golden — “An introduction to the wild and wooly Southeastern Conference is less scary when you’ve already been there, especially as a coach.

For Steve Sarkisian and many others of his new league colleagues, those experiences are an invaluable piece of work when it comes to what they will face this fall.

Sarkisian rarely passes up an opportunity to show reverence to mentors Pete Carroll and Nick Saban, and he started his Wednesday address at SEC media days in Dallas with a personal shoutout to the retired Saban, ESPN’s most decorated college football analyst, who was seated on the SEC Network set at the back of the main ballroom.  

"I would not be standing here today without you and what you've meant to my career, to my life, and I can't thank you enough, and the impact that you've had on our game has been second to none, and I just can't thank you enough,” Sarkisian said to his former boss. "I want to be able to publicly do that to you, Coach. Thank you very, very much.”

Sark helped orchestrate the USC offensive juggernaut that would have three-peated in 2005 if not for Vince Young and the Texas Longhorns, but his career looked to be in jeopardy after personal issues cost him the head coaching job for the Trojans. He got a new lease on his coaching life when Saban hired him as an offensive analyst in 2016. He then worked two seasons with the NFL's Atlanta Falcons before he returned to Tuscaloosa as Saban's offensive coordinator for two seasons. In 2020, the Tide won what turned out to be Saban's final national championship and wideout DeVonta Smith won the Heisman Trophy.

Sarkisian’s three seasons coaching in the SEC along with a pair of matchups against his former boss in 2022 and 2023 at Texas are the type of on-the-job experience that has him suitably prepared for arguably the most anticipated of his 11 seasons as a head coach, as he was always coaching and recruiting at Texas in the old SEC way. Bigger human beings with depth are a priority, particularly across both lines. Saban taught him well.

To that end, I asked Sark on Wednesday why his time in the SEC can help push this thing even higher after a breakout 12-2 season, a Big 12 championship and the program’s first appearance in the College Football Playoff.

It comes down to one word, he said: trust.

"I think where we will benefit is I think our players will trust my experience,” Sarkisian said. “Having been in this league for three years, that when I speak on what is needed in this league, I think that at this point our players now are going to trust what I’m telling no differently than when we were getting ready to have to play Alabama and what it would be like going into Bryant-Denny Stadium.”” Read the full column here » AAS ($)

WHAT TO DO TONIGHT

~ LIVE MUSIC: Peso Pluma. Moody Center (Austin, TX). Doors, 6:30pm. Show, 8pm. Tix available on Stubhub. More info here.

~ LIVE MUSIC: Bob Schneider (full band). Antone’s (Austin, TX). Doors, 7pm. Show, 8pm. Tix $39 and up. More info here.

~ DINING: The 12 best steakhouses in Texas (2 in Austin). Yelp

~ GRAND OPENING: Cabana Club (a fabulous all day swim club in East Austin) is having their grand opening this Saturday. Go there and tell owner Matt Napoli that Matt Mackowiak and ATX Pulse sent you. More info here.

~ EVENT: “Classic Game Fest” at Parmer Events Center. Fri, July 19 - Sun, July 21. Info here.

COOL JOB ALERT

~CHIEF OF STAFF: Public Utility Commission (PUC), Austin, TX. Salary: $9,500 - 11,667.00 (Monthly). More info / apply here.