Vol. 1, No. 11 April 1, 2004
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CRIMINAL DEFENSE
JOHN E. OAKES, ATTORNEY AT LAW
1385 HASKELL, RENO, 775-324-6257
FREE CONSULTATION
"Just Say No'

    Supreme Court Won't Hear Nevada Tax Case

Electors Being Asked to Make Decisions Instead

by Johnny Gunn

Two petitions are circulating around the state at this time, both seeking to force the legislature to fund education before any other budget issues, and the federal Supreme Court has washed its hands regarding the situation. These are just a couple of the repercussions still emanating from the 2003 legislative sessions that went on and on and on, through its regular session and two special sessions, culminating in vicious political in-fighting, supreme court rulings, and a governor at odds with his own party leadership.

Nevada voters overwhelmingly approved a constitutional amendment, twice as required by law, that mandates a two thirds majority in the legislature before any new taxes can be enacted, and that provision is what has led to the Nevada Supreme Court's involvement. Governor Kenny Guinn was manhandling his massive $830 million tax increase through the legislature, and when that august group failed to enact the tax law, Guinn sued the body in the Nevada Supreme Court.

Eventually, the tax increase was passed, and by a two thirds majority, but not until the Nevada Supreme Court ruled, seven to one, the legislature must fund education, even if it means going against the state constitution. Some objected and called for a federal court decree. The nation's highest federal court rejected the argument that they should get involved.

From a legal standpoint, the state is looking at a constitutional question that may linger for many future legislative sessions, or may simply disappear. Some say the state Supreme Court decision is a one time affair and probably won't come up again, ever. Others say it's a big stick being held over the heads of legislators who don't want to enact future taxes. Some others are saying this could come up again and again, every time new taxes are called for.

The two thirds, or 'Super Majority' rule, as it's called, was herded through the political landscape by congressman Jim Gibbons (R-NV), and he, along with his wife, Nevada Assemblywoman Dawn Gibbons (R-Washoe District 25) are backing one of the education petitions currently active in the state. The Gibbons's petition would force the legislature to approve education funding before any other budget requests are looked at.

A second petition is also active at this time, sponsored by the state teacher's union, The Nevada State Education Association (NSEA). The difference between the two is large even though both would require the legislature to fund education first. The plan offered by the teachers would also require the state to increase funding for education to be at least that of the average of all other states in the union.

Currently, Nevada ranks about 44th in the country. Most say the teacher's petition would force new taxes in the amount of about $610 million per year.

According to Assemblywoman Gibbons, "The State is growing astronomically," and this has led to a teacher shortage. "Because of very poor legislative leadership in the Assembly during the last session, funding for education didn't take place until well after the July 1 beginning of the fiscal year." Gibbons said this forced many school districts around the state to lay off teachers for a lack of money, and obviously, not hire new teachers.

"We couldn't get new teachers," she told The Observer, "because the schools couldn't let contracts. They simply didn't have any money." In the Gibbons' education petition, the budget for education must be approved, funding in place, first, before any other state agency.

"We get the budge figures on May 1," she said. "We know exactly what we have to spend well in advance of the new fiscal year."

For a complete look at the Gibbons's petition, go to http://www.educationfirstnevada.com. According to Gibbons, "we need almost 52,000 valid signatures on the petition before it can be included in the November ballot." The actual figure is 51, 234. She says the drive has already produced more than 35,000 signatures. "We want many more than the 52,000. Some of course won't be valid, that's always the case, but the more we get, the more positive everyone will feel.

"If we don't fund education first, it will always be last."

The teacher's union petition faces the same numbers, that is, 51,234 valid signatures before it can be on the ballot. The union has not released figures on how many signatures have been gathered.

Interestingly, the state Board of Education recently endorsed both petitions. The Nevada State Education Association initiative was endorsed by a vote of eight to nothing while the Education First petition was endorsed by a nine to nothing vote.

In a poll conducted recently by the Las Vegas Review Journal, the education first petition was approved by about 68 percent of those polled while the NSEA initiative was approved by 64 percent. According to Mason-Dixon Polling and Research, Inc., there is a margin of error of about four percent.

If either or both initiative proposals receive the necessary number of valid signatures, both could very well be on the November ballot. If either or both were accepted by the electorate, the process would be repeated in two years, and then would become law.

According to figures available from the U.S. Department of Education, the national average of money spent on a student, nationwide in 2000-01, the latest year that figures are available, was $7,376. In Nevada at that time, the figure was $5,807, a difference of $1,569. There were over 300,000 students in the state at that time.

The only organized opposition to either petition seems to come from the Nevada Taxpayers Association, and is directed toward the NSEA proposal. The association president, Carole Vilardo has recently said the group hasn't come out with an official position on either, but personally, she has concerns about both. Vilardo also says the NSEA petition would be too costly for the state taxpayers.

Both parties have until June to gather the necessary signatures and present them to the Secretary of State.


Nevada Supreme Court To Hear Case Dealing With Separation Of Powers

Attorney General's Opinion To Be Tested At The Highest Level

by Johnny Gunn

In March of this year, Attorney General Brian Sandoval released his opinion dealing with whether or not state employees should be allowed to hold public office. In that opinion, he held that full time state employees should not be allowed to serve in the legislature, claiming among other things, the separation of executive, legislative, and judicial powers.

At the time the opinion was released, it was pointed out that until a court had an opportunity to judge the piece, it was just an advisory opinion and held no weight. That may change a lot sooner than originally thought. A petition has been filed with the state Supreme Court demanding that five current legislators quit their state positions or resign from the legislature. The writ was filed by Joel Hansen, the chairman of Nevada's Independent American Party.

Hansen claimed the same separation of powers in his suit, and mentioned the Attorney General opinion. Those named in the suit are Senator Dina Titus (D-Las Vegas), Assemblywoman Chris Giunchigliani (D-Las Vegas), Assemblyman Mark Manendo (D-Las Vegas), Assemblyman Ron Knecht (R-Carson City), and Assemblyman Jason Geddes (R-Reno).

Giunchigliani and Manendo work for the Community College of Southern Nevada (CCSN), while Titus is a professor at UNLV and Geddes is an environmental officer for UNR. Knecht is a staff member of the Public Utilities Commission (PUC).

At the time of the AG's opinion, Sandoval included Senator Ray Rawson (R-Las Vegas) in his list of elected officials who would be affected by the opinion. Rawson has since resigned his position with CCSN, and plans to run for reelection. The five mentioned by Hansen have not resigned, nor have they indicated they would resign, unless forced to do so by the court.

Secretary of state Dean Heller, the state's elections boss, has asked General Sandoval to get that court decision as soon as possible since the 2004 election cycle is rapidly taking shape. Candidates for office must come forward during May to announce for election. According to Tom Sargent, Sandoval's public information officer, the Attorney General has not set a date when he will file his own petition with the court. Whether or not that has become a moot point isn't clear at this time.

The writ filed by Hansen specifically mentions the separation of powers defined by Nevada's Constitution. As approved in 1864, the constitution states: "The powers of the government of the state of Nevada shall be divided into three separate departments, the Legislative, Executive, and Judicial' and no persons charged with the exercise of powers properly belonging to one of these departments shall exercise any function, appertaining to either of the others."

During the 2003 sessions, it was brought up many times, particularly by the legislators most affected by Sandoval's opinion and by Hansen's petition, that these legislators were "voting for measures that might affect their outside employers."

Among the questions that have been raised about state employees serving in the legislature is whether or not a state employee would be serving the constituents of his or her district, or would be serving the state agency he or she worked for. Also, when voting on budget interests, would the state employee in fact be voting himself or herself a potential raise?

These questions could soon be answered by the court. Sandoval only discussed the possibility of state employees serving in the legislature and did not include employees of other political entities, such as city, county, or other political districts. Federal employees are already covered in these situations by the Hatch Act, which forbids such activity.

Besides the Supreme Court case about to be heard, there is a petition moving around the state that if accepted by electors twice, would forbid public employees from serving in the legislature. It would take more than 51,000 valid signatures to place the measure on the November ballot, and according to a poll recently conducted by the Las Vegas Review-Journal, voters in the state are about divided on whether to accept the measure.

The survey, conducted by Mason-Dixon Polling and Research found about 53 percent of those questioned were not in favor while about 41 percent were. The company said there was about 6 percent undecided. The petition is being presented by George Harris, one of those involved with Nevadans for Sound Government. Harris said that 10 of Nevada's 63 elected legislators work full time for state or local governments and the constitution forbids that.

Those opposing the constitutional amendment include public employee and teacher unions. Harris in the meantime has also conducted his own poll, and his numbers are drastically different. Harris said he found that almost 68 percent of those surveyed favor the initiative. He didn't say how many signatures might already be on the petitions.

This year's election is scheduled for November 2, and since this is a presidential election year, it's anticipated there will be a large percentage of voters participating.


Much Money Coming To Many

Board Of Regents Pop For Millions

The debate didn't last very long, and the University of Nevada System Board of Regents has come to the conclusion that many students have been overcharged on their tuition, probably for years. They voted to refund as much as $6 million dollars, money that has been collected since 1995.

A state law says a student at University level is to be considered a Nevadan after six months residency, but the Board of Regents has been ignoring that law and charging students an out of state tuition unless they have lived here for at least one year. The number of students affected by the kick back isn't known at this time, but it's expected to be in the thousands.

The board changed their rule to read the same as Nevada law during a meeting in January. There are questions about whether the University System will have enough money to pay the back tuition, or whether they might have to go to the legislature for funding.

The vote to refund the money passed unanimously.

•••

School Lobbyists To Be Put On Tight Reigns

University of Nevada System Chancellor Jane Nichols will have ultimate control of who can and who cannot lobby for the system as a whole, and for individual schools and colleges within the system, following a vote by System Regents recently.

The new rules for lobbying follow problems that surfaced at the close of the 2003 legislative sessions, when it was disclosed that Community College of Southern Nevada (CCSN) was intimately involved in lobbying for various programs including possibly becoming a four year school. Several people, including employees of the school, and Assemblyman Wendell Williams came under intense criticism.

Expense reports, double dipping by legislators also acting as lobbyists, and questionable activities by other school employees added to the furor. Following the sessions, it was discovered that CCSN had spent almost $24,000 in entertainment expenses for legislators, more than all other University System lobbying.

During the debate over the new rule, more than one regent suggested that school employees shouldn't even be lobbyists, that the concept was a direct conflict of interest.

Nichols has not indicated exactly how she will set up the lobbying procedures. During the 2003 sessions, the system hired an outside lobbyist but also used school employees in lobbying positions.

•••

No Child Left Behind Rules Eased By Washington

Complaints from many rural Nevada school districts about the strictness of some of the rules set by the No Child Left Behind Act has prompted Education Secretary Rod Paige to ease some of the rules, particularly those dealing with teacher certification. Many teachers in the rural school districts across Nevada must teach in more than one subject area, and the new rules will allow these teachers to have a little more time in getting certified.

The rule changes were prompted by complaints brought to the Education Secretary's attention by Nevada Congressman Jim Gibbons (R-NV) and Nevada Senator Harry Reid (D-NV). Gibbons said, "The change will benefit small towns and rural districts."

At the ceremony for the introduction of the changes, Gibbons was quoted as saying, "Too many of our rural schools are suffering with limited money and limited resources to meet the No Child Left Behind Act."


Election 2004: Nothing Is Written In Stone
Joe Neal Calls It Quits After 32 Years In Legislature

He has taken on the biggest challenges of anyone who ever served in Nevada's Senate, the combined power of the gaming industry among them, and survived, but he says, 32 years is enough. Senator Joe Neal (D-Las Vegas) is stepping down, possibly to run for a seat on the Clark County Board of Commissioners.

Only one other legislator has served as long as Joe Neal, and that's Senate Majority Leader Bill Raggio, elected in the same year, 1972. Neal has made a run for the governor's chair twice during that time. Voices were heard immediately after his announcement, calling him a leader who will be missed in future sessions.

Neal's district is heavily democratic, and so far, three others have come forward to try and fill the empty seat, including University Regent Linda Howard, State Board of Education member Theresa Malone, and former casino executive Cedric Crear.

Howard was elected to the Board of Regents in 2000 and has been at the heart of several controversies surrounding that board. Howard was accused of accessing files of students who were critical of her, accessing personnel files of Clark County Commissioner Yvonne Atkinson Gates, who works at UNLV, and was a participant of meetings the attorney general has charged were violating the state's open meeting law.

Although acknowledging that she was directly connected to those controversies, she said they were not the motivating forces in her search for a senate seat. "I won't miss it," she said, referring to the board of regents.

Neal said when he last stood for reelection it would be his last and he held to it.

•••

Dawn Gibbons Says No To Standing For Reelection

"I was horrified by the actions of the Assembly leadership," is the way Reno Assemblywoman Dawn Gibbons (R) described the 2003 session of the Nevada Legislature. "I'm going to remain very active," the northern Nevada republican told The Observer, "but not as a member of the Assembly."

Gibbons said she has learned so much about how things get done in Carson City that she can be just as effective outside the hallowed halls as inside. "It's important we keep the integrity of the tax restraint initiative," she said, concluding that she knows how bills move and the procedures that are followed. The tax restraint initiative she was talking about is the two thirds or 'super majority' rule shepherded by she and her husband, Congressman Jim Gibbons (R-NV) through to completion.

"There were those who held education hostage during the 2003 session," she said, "and I don't want to have to face that kind of politics again."

Would there be anything that might make you change your mind, we asked?

"Just one thing. If Bill Raggio (Senator Bill Raggio, leader of the state senate, and a fellow republican from Washoe Country) decides not to run again, then I will run for that seat."

•••

One Really Should Live In The District He Serves

Tom Gallagher lives in Incline Village, Lake Tahoe, Washoe County, about 1,000 miles from Nevada Congressional District Three, and Summerlin, Clark County, also not in Nevada Congressional District Three, but he is running for that seat, currently held by freshman congressman Jon Porter. Gallagher is a democrat, Porter a republican, and according to at least one Gallagher representative, the candidate plans to move into the district. Soon.

By law, to represent a district, one does not necessarily have to live in the district, but Gallagher has been quoted as saying he doesn't want to look like a carpet bagger either.

Gallagher is a former casino executive and this would be his first venture into politics. An interesting side light to the campaign: He donated $2,000 to the Bush campaign, and $4,000 to John Kerry.

The Democratic Congressional Campaign Committee has targeted Nevada District Three after losing two years ago in a hard fought campaign. According to a Porter supporter, "Now we've got guys from California, New York, I don't even know where, coming in to buy this seat.

There are other democrats who have already announced their intentions, including Rick DeVoe and Mark Budetich. Budetich ran unsuccessfully against Dario Herrera, who is now under indictment for felonious activity while serving Clark County as a Commissioner.

***

The Numbers Favor The Non Partisan This Year

The latest Voter Registration numbers released by the secretary of state indicate that those registered as non partisan will probably define the process this year. Despite the fact they cannot take part in primary battles, those who have registered as non partisan this year number 129, 285, and that's in a state with less than one million electors.

At press time, the numbers look like this

Republican 355,116

Democrat 343,679

Non partisan 129,285

Independent American 16,698

Libertarian 4,833

Green 2,483

Natural Law 882

Reform 195

Other 1,651

Party affiliation within the three Congressional Districts reflects about that same breakdown.

Clark County, District #1

Republican: 72,283

Democrat: 104,299

Non partisan: 32.545

Parts of Clark County and the rest of the state, District #2

Republican: 157,831

Democrat: 116,309

Non partisan: 49,748

Clark County, District #3

Republican: 124-945

Democrat: 123,048

Non partisan: 46,971

For a complete look at the election cycles in Nevada, and other pertinent information, go to http://secretaryofstate.biz.

Reading the numbers would not make a staunch republican or democrat feel easy about 2004. Swing voters are very obviously those who don't wish to call themselves by one or the other of those names, and it's those voters that both parties will be keying on in the coming months.

The one draw back from registering as a Non partisan is the primary election, held this year, as in the past, in September, well after the two major parties have named their presidential candidates. Registered Non partisan voters are not allowed to vote in the partisan primary elections, both federal and local.

•••

Hold The Jacks Or Better, Or Some Other Politician

While many other states are still arguing about touch screen voting machines, and in particular about whether or not a paper ballot should be part of the program, Nevada is surging ahead, purchasing thousands of machines, and all with the attachment of a paper validation device called a Voter Verified Printing Device (VVPD). The machine of record for the Silver State is made by Sequoia Systems of California. Earlier versions of the touch screen system have been in use in Clark County since 1996.

According to Clark County Registrar of Voters Larry Lomax, there are 2,186 of the older machines in the county that will be used in 2004 despite the fact they will not have the VVPD attached. Lomax said "740 touch screen machines we have will have the device." He said, "It plugs into the printer portal with no problem."

Lomax has been using the machines for early voting in particular, "as many people vote early in Clark County." At least one that has the VVPD will be at every polling place.

Lomax has been one of the big supporters of touch screen systems for years, and has been quoted as saying they have never given him any problems. Clark County is home to about 70 percent of the voters in the state.

According to Steve George, speaking for Secretary of State Dean Heller, Sequoia has developed a verifiable reading device, that is a paper ballot, which will be attached to all the machines purchased for the state. At this time, testing of the devices is still in progress. The federal testing agency has said they will not be able to finish their work by election day, 2004, but has given Nevada the go ahead to continue their testing. The government has said they will accept the conclusions of Nevada's testing.

According to the federal Helping Americans Vote Act (HAVA), at least one touch screen voting machine must be available in every polling place in the country by 2006. Nevada will comply with an earlier decree that the machines be available by 2004.

According to Secretary of State Heller, it was determined during public hearings on the machines that the public demands a paper ballot to back up the electronics. Because of that, Heller went to the two major manufacturers of touch screen systems, Dibold and Sequoia, and said he would only accept machines with a Voter Verified Printing Device. Sequoia alone said they could and would comply.

During a press conference to introduce the machines, this reporter "voted" on one, was able to look at the printed and verified receipt, and had the feeling that if he had just held the Eights, he might have come out with four of a kind. That's right, voting on the touch screen systems is exactly like playing video poker.

Should work in Nevada.


District Judge Michael Douglas Appointed To High Court Will Sit Until November
Plans To Stand For Election

Governor Kenny Guinn has appointed Clark County Chief District Judge Michael Douglas to fill the seat occupied by deceased Justice Myron Leavitt. The appointment is for a term to end following the November elections. Justice Douglas has announced he will be a candidate for the seat. He had planned to run for the seat currently held by Justice Miriam Shearing. Shearing has announced her retirement from the bench at the end of her term.

Douglas has served as a district judge in Clark County since 1996, and will be the first African American to sit on the state's Supreme Court. Originally from southern California, Justice Douglas has been in Nevada since 1982.

Washoe District Judge James Hardesty will be among the candidates looking to fill Shearing's position on the highest bench. Justice Deborah Agosti has announced she will stand for reelection.

Justice Leavitt had served in many legal capacities over the years and was a close friend to Governor Guinn. He died January 9 of this year at the age of 73 from complications from diabetes. Leavitt had undergone kidney transplant surgery in November 2003.

Guinn has said Justice Douglas has impeccable credentials. A judicial selection board had forwarded three names to the governor, including Las Vegan Gregory Smith and David Hunter Hamilton from northern Nevada.

Justice Douglas is a graduate of Hastings College of Law in San Francisco.


Water Woes Plague High Desert Communities

Building, Growth, Expansion Add To Problems Facing Nevada

As we come to the end of the winter season, the water producer for the Silver State, more and more communities are facing severe water shortages, while at the same time, developers are coming to meetings of city and county governments virtually daily to present new plans for growth; more people that will pay more taxes.

In southern Nevada, complaints are heard daily about water abuse while in northern Nevada, severe restrictions are being talked about, dealing with those who can't grasp the concept that Nevada is a desert state.

Southern Nevada Water Authority

The authority has restrictions in place to deal with water shortages that are expected as the hot season approaches. Snow fall in the Rocky Mountains has not been up to average, and the Colorado River which is responsible for bringing drinking water to Las Vegas won't be bringing enough for all needs.

Some complaints are heard regularly about fountains and water use along the strip in Las Vegas, but much of that water comes from underground wells, and the water rights are owned by the casinos in question. Lawn watering, pools, and golf courses are more responsible for waste than the strip, according to some.

One interesting figure offered by a casino executive tries to balance water use with employment figures. Strip casinos are responsible for about seven percent of the water distributed by the district, but is responsible for 50 percent of Nevada's employment base, and 70 percent of the state's gross product.

Others are saying someone is trying to compare apples to oranges

•••

Major Fines In Store For Water Wasters In Washoe

Although this year's snowfall in the Sierra Nevada Mountains has been good, it still isn't above average and won't be a drought breaker for northern Nevada. With growth at staggering figures, the Truckee Meadows Water Authority (TMWA) is planning some severe action to halt water wasting in the area. New homes must have water meters, but thousands of older homes don't, and attempting to find water wasters is a difficult job.

Restrictions on lawn watering have been in effect for several years, but the authority is planning on increasing penalties this year. People who run water into the gutters, who try to make their sidewalks grow, or who insist on watering on the wrong days, will be looking at new penalties. For a first offense, just a warning, but it gets tougher after that.

A second offense will bring a fine of $25 and a third offense will cost $75. After that third offense, the homeowner will also be forced to install a water meter. There are about 30,000 homes without meters in the Truckee Meadows.

Last year, according to figures released by TMWA, more that 6,000 warnings were issued, but only 63 citations were given out, and of those, only 22 were paid. The water authority has designated workers driving around various neighborhoods looking for water wasters, and will also accept complaints from the public.

•••

Walker Lake, Dying For Years

To Get Fresh Supply Of Water

One of the last remnants of ancient Lake Lahontan, Walker Lake also supports a large supply of Lahontan Cutthroat Trout, and is temporary home to many migrating bird species. Since the early 1900s the lake's level has fallen about 140 feet, creating a salinity problem for fish and birds. Upstream agricultural use along with evaporation is the main cause.

A federal court order will help change that this year. U.S. District Judge Edward Reed signed an order releasing some 13,500 acre feet of water for the lake. Biologists have been saying for several years that the salinity levels in the lake could end the cutthroat population, along with other fish species.

The economically depressed Mineral County community of Hawthorne will be even more economically devastated should that happen. Sportsmen and bird watchers from around the west come to the area in droves every year. Fishing is a mainstay of the community, and there is also an annual Loon Festival.

Biologists say that when salt and other solids reach a level of about 16,000 parts per million (ppm) fish can no longer live in the lake. At this time, the levels have reached between 13,000 ppm and 15,000 ppm.

Agricultural use upstream is the main cause of the lake's current falling level, but even if farmers and ranchers cut back, it wouldn't end the problem. According to many sources, there are more water rights given than water available, even in a very good water year. There simply isn't anything left over. The release of the new water is only a temporary measure.

•••

Feds Mandating Arsenic Levels -

John Ensign Upset By Standard

Hundreds of small communities in Nevada will be affected by a new federal mandate that is designed to sharply reduce the amount of arsenic in drinking water. The current Environmental Protection Agency (EPA) standard for arsenic, a heavy metal, is 50 parts per billion (PPB), and the new standard, scheduled to be complied with by January 2006, is ten PPB.

Nevada Senator John Ensign (R) is calling the new standard shortsighted and unsupported by any science. "I don't believe in unfunded mandates like this," he said. According to figures released by Ensign's office, some communities that will be affected have as few as 15 hookups. In all, about 140 community water systems will be affected in Nevada.

The community with the highest arsenic levels in their drinking water is Fallon in Churchill County, with a measured amount of 100 PPB. A federally funded treatment plant to remove the arsenic should go online before the end of the month. That plant is costing the government about $16 million, and was brought about because of the childhood leukemia cluster found in the community. Sixteen residents were diagnosed with the cancer.

Although arsenic has been linked to some forms of skin, bladder and other cancers, Senator Ensign said there is no science to back up the reduction in levels as outlined by the EPA. He said nothing exists that might say a reduction from 50 PPB to ten PPB would improve health or public safety.

Ensign believes that some on the East Coast of the country are behind the push for the lowered EPA standards. According to the senator's release, few arsenic problems exist in the east.


Big Raise, Big Bonus
For Reno City Manager

After a brief closed personnel session March 24, the Reno City Council reconvened and voted to renew City Manager Charles McNeely's contract for two more years and increased his current $177,000 annual salary by six percent bringing his salary to $187,620.00. The Council also awarded him a $17,700 bonus.

Council members said under McNeely's leadership the city met the goals set by the council last year, and that he had exceeded all expectations. The Council applauded a long list of major accomplishments for the City of Reno over the past year under McNeely's management.

Among the accomplishments cited: maintaining the city's financial stability with $5.4 million in the stabilization fund and an increase in fund balance over the prior year of $3.2 million for a total fund balance of $14 million. The council also mentioned several new law enforcement programs and the hiring of 35 new police officers, and some new projects such as the Truckee River Whitewater Kayak Park, and new business in the River District.

McNeely oversees a staff of 1,670 with an annual budget of $420 million. He has served as the Reno City Manager for eight years and has more than 28 years executive level management experience.


The Buzz Around the Silver State

Compiled by our Correspondents

From The Capital

Economic News Remains Very Good

(Carson City) --- Unemployment figures for February show Nevada well below the national average, and most counties indicating a steady if not brighter employment picture. The seasonally adjusted jobless rate dipped to 4.4 percent, down from 4.5 in January, and well below the 5.6 national rate.

In Clark County, the rate stood at 4.6 percent, down from 4.9, Washoe County showed an unemployment rate of 4.5, down from 5.1, and the combined Carson, Douglas, Lyon, Storey Counties rate was 6.2 percent, down from 7.1.

Elko County and Eureka County, both in active mining districts, also showed decreases in unemployment. Each came in with 5.4 percent down from 5.9. The price of gold, now well over $400 per ounce, is leading the way in the eastern communities.

Generally speaking, winter months in northern Nevada produce the highest unemployment figures, but increases in the economy as a whole, and new manufacturing jobs have led to the decrease. Northern Nevada's economy is a little more broadly based than other areas of the state with considerable amounts of warehousing, distribution, and transportation jobs available, and recently, an increase in general manufacturing.

The current unemployment rate is the lowest in three years.

•••

Taxable Sales Continue Their Climb

Figures for January have been released by the taxation department, and Nevada's economy is showing some very strong growth. Statewide, taxable sales are up by 11.4 percent over January of 2003. Restaurants, car sales, and construction led the way.

Clark County's taxable sales were a strong 12.7 percent above last year, indicating sales of $2.16. Washoe County showed an increase of 8 percent, just under the $600,000 mark.

About one third of Nevada's budget is covered by the sales tax, so an increase of this magnitude is something accountants in Carson City get very happy about. Nevada increased taxes in many areas and created new taxes. Some of those changes are responsible for the increase.

New live entertainment taxes have not been up to expectations according to the taxation department, and taxes on cigarettes and booze are also not as much as anticipated.

•••

Clark County

(Las Vegas) --- As expected, Las Vegas Mayor Oscar Goodman has refused to release the documents he wrote in response to the latest ethics complaint filed with the state Ethics Panel. His response to the charge was filed last week, and by rule, can remain confidential until released by Goodman himself.

The complaint results from a party Goodman hosted in Washington, DC for his son and Las Vegas City Councilman Michael Mack. Young Goodman and Mack own a political consulting firm call iPolitix. The party took place during the U.S. Conference of Mayors meeting in the capital.

There has been no word from the Ethics Panel on the complaint filed by Las Vegas activist Robert Rose.

•••

Nye County

(Tonopah) --- A group of Las Vegas businessmen have purchased the historic Mizpah Hotel in Tonopah for an undisclosed amount of money. Their representative, Danny Doiron, has indicated he will be the general manager following restoration, which is scheduled to be completed within the next few months.

The hotel was built in 1908 following the discovery of silver and gold just after the turn of the century. The structure, now on the Registry of Historic Places stands five stories tall and offers 54 rooms. Tonopah is located about half way between Las Vegas and Reno on Highway 95.

Tonopah has been in an economically depressed state for several years, and one of the town's leaders, Bob Perchetti says the reopening of the hotel will be a boost to the town's economy. Mining activity has come to a complete halt in the general area, and activity at the Nevada Test Site has also been reduced.

The building is a grand structure in the style of the period, built of local stone. Closed for the last three years or so, the new owners hope to establish the hotel as a meeting place for conventions and trade groups as well as be a local watering hole. Doiron said the group plans to integrate an RV park into the plans as well as an indoor pool, and convention center on property adjacent to the main building.

Prior to the discovery of Silver by Jim Butler at the turn of the century, Belmont was the Nye County seat, but Tonopah has been the seat for almost a century. Tonopah is being challenged by some in the southern end of the vast county to make Pahrump the county seat.

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Washoe County

(Reno) --- The Reno Redevelopment Agency has entered into an agreement with BCN Developers of Denver, CO to construct an eight story multi-use building to the west of the Riverside Artists Lofts Building along the Truckee River in downtown Reno. The artists lofts building used to be the venerable Riverside Hotel. BCN's project would include retail space and parking on the first level, and other parking on two upper levels. About 50 condominiums will be built on the upper five floors of the structure, which is expected to cost about $17.4 million.

This project will sit on the south bank of the Truckee River, directly across from the Palladio Condominium project, which is just getting underway. Construction of the two projects could take place simultaneously. No name has been put to the BCN project at this time.

This would put four large condominium structures along the Truckee River within two blocks of each other and create a new neighborhood. Reno redevelopment officials are hoping this will entice other businesses to return to the downtown area. One business, the Silver Peak Brewery is already in the process of opening a second location downtown. Their upscale restaurant and brewpub would sit catty corner from the Palladio and across the street from the Riverside Theater.

An empty lot next to that theater is available for development and the city has reached an agreement with Kelly Bland and DT Developers. A building housing restaurants and/or other retail businesses is expected to be built at that corner of Sierra Street and First Street.

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(Incline Village) --- The Washoe County Board of Equalization reduced taxable values on 126 parcels at Incline Village, a community along the northeastern shore of Lake Tahoe. The appeal hearings took place over a five week period.

The Washoe County Assessor, Bob McGowan recommended 77 of the reductions while 49 were changed at the request of property owners.

Each year one fifth of property in Washoe County is reappraised, a schedule established by Nevada law. Often, this reflects a large jump in market values, particularly in an upscale community like Incline Village. The median value of single family residences at Incline Village has increased from about $450,000 to almost $800,000 during this last five year period.

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Elko County

(Elko) --- A Mining Expo is planned for Elko, June 10 and 11, and county tourism officials are expecting a large crowd for the affair. Gold has increased in value considerably this year, topping well over $400 the ounce, and this should bring many representatives of the mining community around the world to the event. More than half the vendor spaces have already been filled according to the Elko Convention and Visitors Bureau.

A second mining exhibition is scheduled in Nevada this year. The National Mining Association's International show is being held in Las Vegas this fall. The International show takes place every four years.

In Elko, the planning committee says there will be two days of displays from such groups as the Western Underground Mining Association, a gem show, mining games and events, and for the kids, a Minor Miners program. There will also be local restaurants and caterers manning special booths.