Vol. 2, No. 3
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Dec. 1st, 2004
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CRIMINAL DEFENSE |
COPYWRITING
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Kathy Augustine Censured -- Keeps Her Controller's Desk
Most Say End Of Political Career: She Says 'Don't Count Me Out'
by Johnny Gunn
As trials go, this one was quick, but not without touches of intrigue and of course, politics. Kathy Augustine (R), elected Nevada State Controller, was found guilty of one count of ethics violations, censured, but allowed to return to her office for the final two years of her term. As has been pointed out, the impeachment before the Assembly, and trial before the Senate, was the first in the history of the state for an elected official.
The Assembly had brought three charges of ethics violations in their impeachment, and the Senate, after a very short three day trial found her guilty of just one of those charges, the least serious of the charges. She will receive her full salary during her final two years in office, but is still facing having to pay a $15,000 fine leveled by the State Ethics Commission.
There are many that question whether the charges should have generated criminal charges instead of ethics violations, and that will be debated for years to come. In historic cases such as this, every pundit worth his printer's ink will have something to say.
The Assembly voted unanimously for impeachment, but the vote in the Senate was anything but. To find Augustine guilty took a two thirds majority vote, at least 14-7 in the Senate. In the one conviction, the vote was 14-7. The censure vote however was unanimous. The Controller could have been evicted from office, but censure is sure to cloud any future political ambitions of Augustine.
Augustine says otherwise. "I plan to continue my political career," she said, wiping tears from her smiling face.
Augustine was defended by Dominic Gentile and John Arrascada while special prosecutor Dan Greco of the Washoe County District Attorney's office prosecuted. Greco is one of those who questioned why there hadn't been criminal charges filed by the Attorney General rather than ethics violations.
The one conviction was for using state equipment in her bid for reelection two years ago. A count involving employees claims of being forced to work on her campaign during state time, and of another charge of bullying tactics that forced other state work to be set aside in favor of campaign work, on state time.
Defense attorneys questioned whether a conviction might put every elected official in line for harassment by disgruntled employees. Some senators, all of whom questioned prosecution witnesses, were also inclined to disagree with the witnesses' claims that they were intimidated into doing the reelection work.
Special prosecutor Greco asked for a 60-day suspension without pay following the single guilty vote, but that was not accepted by the Senate.
•••
New Computers For Legislators Are Criticized At Highest Level
Games And Sports Some Of Abuses Being Discussed Prior To Purchase
by Johnny Gunn
If you enjoy a good game of solitaire or want to check up on the latest NBA standings, the games, not the crimes, then your best place to be this next year will be the floor of the Nevada Legislature, for every single member of that August body will have in his or her possession a brand new laptop computer.
The contract hasn't been signed as we go to press, but there are two companies vying for the honor of providing the computers: IBM and Gateway. General consensus is that the members prefer Gateway over IBM. Of course, we must remember that IBM advertises itself as a business friendly machine rather than one that your everyday run-of-the-mill cyber-slacker might want.
A committee of five is making the decision. Gateway will charge $1,325 per while the IBM machine would cost $1,540 each. IBM already provides wireless network provisions in the legislative building, and it isn't known yet whether Gateway's machines would be compatible.
The plan is to purchase 100 new laptops, 63 of which would go to lawmakers, the rest for staff. According to the Legislative Counsel Bureau, machines currently in use would be distributed to legislative staff.
There is considerable opposition to the plan, coming from two heavyweights in the Senate. Senate Majority Leader Bill Raggio (R-Washoe) and Senator Randolph Townsend (R-Washoe) say the laptops already in legislator's possession should be good enough. They were upgraded just two years ago.
The legislature meets once every two years, which would give a discerning person the thought that these upgraded computers are virtually brand new. Unless of course the legislators took them home and loaded more games or ESPN favorites.
Townsend said he believes that if new computers are needed, they should go to staff. Both Townsend and Raggio called the use of computers for game playing by legislators on the floor an absolute abuse.
Gateway is offering the M210 model while IBM is betting on its ThinkPad T42 notebook.
Governor Wants Next AG To Continue Yucca Fight
Brian Sandoval May Move To Federal District Judgeship
Nevada U.S. Senators Harry Reid (D) and John Ensign (R) have placed the name of Nevada Attorney General Brian Sandoval in nomination for Federal District Judge, and all indications are he also has the backing of President George W. Bush. Sandoval still has one year to go on his current term as Nevada's highest ranking law enforcement officer and has been a fierce opponent of the Department of Energy's plans for Yucca Mountain to become a federal repository for high grade uranium residue from generating plants around the world.
If Sandoval (R) is nominated and accepted, he will have to resign his elected position, and Governor Kenny Guinn says he will of course appoint a Republican to fill out the last year of Sandoval's term. Guinn says he doesn't want someone to just fill out that term, he wants someone to continue the fight to stop the Yucca Mountain project.
At this time, the governor is not naming names, but some, he said have already called him with ideas. There are many names being touted at this time, many from a political standpoint, some from the non-political front. Guinn says he wants to appoint someone who will run for election to the post next year, not someone to just fill the spot for awhile.
Whether or not the governor will ask Brian Sandoval whom he might want to follow him into the position isn't known at this time.
More than likely, the nomination and acceptance procedure probably won't take place until after the first of the year, after the president is sworn into another term.
There is a swarm of legal suits either already in court, filed, or being ready for filing, and whoever takes the reigns as the new Attorney General, his job will be one mostly lined out for him.
Thousands of pounds of high level nuclear waste are stored at utility plants across the country awaiting the opening of the Yucca depository. Lawsuits have slowed the process of making that repository ready for use, and many more are either in the system, or being prepared for filing. One big suit recently won by Sandoval and company has challenged what constitutes the length of time the nuclear waste can be considered dangerous. Environmental Protection Agency levels are 10,000 years, but scientists have challenged that thinking, and a lawsuit has established a time length of 250,000 years.
There is no way to know if one of the casks designed to store the waste could last for 10,000 years more or less 250,000 years, but hundreds of thousands of dollars will be spent over the next few years to argue the point in court.
From a more cynical approach, Brian Sandoval is the highest elected Hispanic in the state of Nevada, and his name has been mentioned often for the office of governor, or for a congressional seat. Did Senator Reid's nomination effectively take a well-respected Republican out of the political arena?
•••
Retail Sales Go Through The Roof According To September Report
Automobile Sales Not Far Behind -- Rural Counties Doing Well Also
Nevada's economic climate remains exuberant according to September sales tax figures released by the state. Led by retail outlets in general, sales in the Silver State increased by 17 percent compared to a year ago, and the Department of Taxation says this is the eleventh time in the past twelve months that sales increases of ten percent or more have been recorded.
Across the state, sales totaled almost $3.7 billion, an increase of a heft half billion over last year. Clark County led the way with sales of $2.6 billion followed by Washoe County at $592 million. The Clark County figure is an increase of 16.7 percent, and Washoe's taxable sales increase is 16.3 percent.
Many of the rural counties have also shown strong sales increases during the reporting period. Tiny Storey County, Nevada's smallest, reported a 304 percent increase in sales, at $17.7 million. Nye County, the Silver State's largest, and the third largest county in the United States, recorded sales of $44.9 million, an increase of about 53 percent.
Retail sales in the state increased by almost 20 percent and the automobile and related fields such as gasoline sales were up by 17.9 percent.
A group of business leaders known as the Economic Forum is meeting as we go to press. This is the group that analyses state revenues, the figures from which are used to determine whether new taxes are needed. It was their calculations that led to the massive tax increase passed by the last legislature. Governor Kenny Guinn will use their analysis in determining the budget for 2005-2007 that he will present to the legislature when they meet beginning in February.
Because of a combination of that increase in taxes and the economic boom that Nevada is experiencing there should be a hefty surplus in Governor Guinn's budget. Whether or not that leads to a possible reduction in taxes is something our elected officials will have to work out. Nevada's budget is filled primarily from Gaming and Sales Taxes, with mining and agriculture filling out the final third.
All of this comes as the holiday shopping season is exploding around us. From November 26, the day after Thanksgiving until December 24, the day before Christmas, more money will change hands in Nevada than would be seen at a Mafia luncheon decades ago.
Advertising sales in Nevada's print journals is as high as it's ever been, and traffic around the state's major shopping malls is gridlocked. September's sales were driven in part by back-to-school sales and generally good weather statewide.
•••
Retiring Supremes Getting An Upgrade As Well
Agosti, Shearing, Senior Justices Decision Made On Election Day
Two of Nevada's District Judges were elected to the Supreme Court, and because of that, the two justices who opted for retirement have been designated as Senior Justices. Justices Miriam Shearing and Deborah Agosti will be able to sit at both the District Court bench and on the Supreme Court if need be.
District Judges Ron Parraguirre of Clark County and James Hardesty of Washoe County will begin their terms on January 3 at which time Shearing and Agosti will assume the senior justice position. The two district court positions will have to be filled by gubernatorial appointment, and that probably won't happen immediately, according to Justice Agosti.
Because there will be a possible back load of cases at the district court level, the Supreme Court felt these appointments were necessary. Both Agosti and Shearing have experience at the district court level and should have no problem filling in if it becomes needed.
•••
Esmeralda County Law Enforcement At Odds
Sheriff Wants DA Tossed Out -- DA Says Sheriff Is Lying
One of those old time political fights is developing in Esmeralda County between the top elected law enforcement officers. A hundred years ago, this probably would have developed into a showing of Colt Peacemakers, but hopefully, not today.
Sheriff Kenneth Elgan wants the District Attorney removed from office, claiming negligence.
District Attorney William Schaeffer says the sheriff is guilty of blatant falsehoods.
The fight has gone to district court, and beyond. The Nevada Supreme Court has removed District Judge John Davis from hearing the case. However, a special prosecutor called for by Davis will be allowed to continue. It's expected that District Judge Robert Lane's court will take over the case.
The sheriff says that Schaeffer has not been doing his job, allowing drunk drivers off the hook, not prosecuting drug cases, even giving his secretary a raise after the county commission put a hold on all such raises. Schaeffer has denied all the accusations.
Nevada law calls for a District Attorney to be a an attorney, and in many of the smaller rural counties, there often is not an attorney living within the jurisdiction willing to run for the political office. In the case of Esmeralda County, the current DA lives in Battle Mountain, the county seat of Lander County, several hundred miles to the north.
Esmeralda County is one of Nevada's smallest with a population of just over 1,000. There are two main communities, Goldfield and Silver Peak. Goldfield's mines have all but shut down, although there has been some local talk about opening an operation north of the town. Silver Peak on the other hand has two active mines with recovery mills attached.
Schaeffer has served as District Attorney in Lander County and doesn't feel the distance between his home in Battle Mountain and the courthouse in Goldfield has any bearing on his ability to do his job. According to Sheriff Elgan, Schaeffer has missed many county commission meetings.
There has been no date set for the first district court hearings. The original suit was filed in August.
•••
Unemployment Lowest In Quarter Century
Northern Nevada Leads The Way -- 51,000 New Jobs This Year
Nevada began the final quarter of the year with an unemployment rate below the national average, and the best since 1978, according to figures released by the Department of Employment Training and Rehabilitation. Statewide, the number of unemployed was slightly more than 40,000 or 3.6 percent of the potential workforce. There were 1.149 million people working in the Silver State in October.
Most economists are in general agreement as to why the unemployment figure is so low. "It's the construction industry, stupid," one wag told The Observer. In the nation, unemployment stands at 5.5 percent, while in neighboring California, the figure is 5.7 percent.
Washoe County's unemployment figure stands at 2.8 percent, which translates to "those who want a job have one." The Las Vegas figure is 3.5 percent, down from September's four percent.
During the first three-quarters of 2004, Nevada has led the nation in job creation according to the Department of Employment. There are 4.7 percent more new jobs in Nevada so far this year. Total employment stands well above the national average as well.
Jobs in the gaming industry have fallen in the northern and rural sections of the state, not in Clark County, and construction jobs have flourished statewide..
Cable Companies Looking For Less Regulation
National Trend Reaches Nevada -- Not Everyone Disagrees
by Johnny Gunn
Charter Communications, primarily a northern Nevada cable television provider has joined hundreds of other cable companies nation-wide in attempting to get out of local government controls. Already deregulated to a degree, many companies, including Charter and Cox in Nevada, are still regulated to a degree by local governments.
In Reno, Charter recently signed a franchise agreement with the city that would extend their rights to be the only cable outlet in the area for another 15 years.
Under current federal rules, if a cable company serves less that 85 percent of the potential total, then they can petition to be let off the hook, so to speak, as far as being under certain types of control by local governments.
According to an organization known as the National Association of Telecommunications Officers and Advisors (NATOA) "The cable industry has flooded the Federal Communications Commission (FCC) with petitions to revoke local government basic rate regulatory authority." According to an Action Alert made public by NATOA, "If the FCC approves the cable operator's petition, the Local Franchising Authorities will lose the ability to regulate cable rates for Basic Service, Equipment, and Installations." The alert goes into great detail on how this can happen. We invite you to go to http://www.natoa.org for more detail.
In 1996, under the federal Telecommunications Act, the industry was basically deregulated, supposedly to attempt to increase competition among other things. The deregulation was also supposed to bring lower prices. The deregulation did not change how local governments could control certain aspects of cable service, in particular Basic Service and Installation and Repair Service.
This only happens though, if the cable outlet can prove they serve less than 85 percent of the potential customer base. According to the recent filing by Charter, their base has been eroded by satellite operations, and they now only serve about 80 percent of their potential base.
In Reno, a Citizens Cable Compliance Committee exists, appointed by the city and chaired by Andrew Barbano. While the city's franchise agreement is supposed to regulate such things as the basic program, that is a bundled group of channels, along with equipment rental rates, and how much the company charges for repair and service calls, Barbano says if the petitions are granted, "...the potential for ratepayer harm is great." He went on to say, "Cable companies will be able to implement the equivalent of power companies charging some customers less than others," based simply on the neighborhood in which they live.
According to Barbano, "Charter will be free to sell below cost. They can eliminate senior discounts." Barbano as chairman of the committee also publishes an online newsletter called barbwire. Go to http://www.nevadalabor.com/barbwire.
The charge that Charter Communications could eliminate senior discounts in Reno is disputed by Steve Wright, the city's Director of Community Relations. "Senior discounts are contracted," he says. "They are part of the franchise contract the city has with Charter."
When the federal deregulation rules were implemented, political entities were given 20 days in which to respond to cable company petitions. Barbano said Charter Cable filed their petition on November 8, which would mean that the city of Reno and other locations being affected would have to respond on or before November 28.
According to Wright, Reno, Sparks, Washoe County, and Carson City have joined together to respond to the filings by Charter. "We did this electronically, so the deadline of November 28 wasn't unreachable." Wright said the political entities had been made aware that Charter Communications would file their petition more than a week before it happened.
Reno, Sparks, and Washoe County FCC Case Number for the filing is CSR-64-17-E, while the Carson City petition is filed as CSR-64-18, and Clark County's Case Number is CSR-64-19.
Wright says the move by Charter Communications is the direct result of satellite operations taking customers away. "This is result of the deregulation in 1996," he says. "Charter is looking to be more competitive in the market." He goes on to say that the city of Reno's franchise agreement doesn't allow for pricing, but only for "making sure the forms are correct."
Wright says, "If the forms are filled out correctly, we can't stop them from making changes in their pricing or other services. That is from the federal regulations. The only thing, though, the senior discount program is part of our franchise contract, and they can't change that."
Barbano is worried that the cable company might begin to make special rates available in a neighborhood to neighborhood selective way, but according to Wright, that certainly wouldn't be the best thing they could do. "Making special rates available to one group and not all, simply to get more customers could very well anger many already with the company."
Hard Rock Hotel Pays Its Fine, $100,000 To Gaming Regulators
Billboard Advertising Is What Gamers Were Upset With
What could have been a $300,000 fine was reduced by two-thirds, and the fine was paid in full by the Hard Rock Hotel following complaints brought by the Gaming Control Board. The parent Gaming Commission established the fine. See Nevada Observer Opinion piece by publisher David Thompson in the Oct. 1st, 2004 issue
In a settlement that is coupled to the fine, Hard Rock Casino executives will be responsible for seeing to it that advertising such as that which sparked the debate, will be acceptable to gaming officials. The Gaming Commission has indicated that it will be management that is responsible.
Both sides have indicated they are in agreement that the final monetary and stipulations settlement is what is best for the gaming industry. There are some that were under the impression that the advertising billboards put up by the Hard Rock Casino shed a bad light on the industry.
•••
Controller Augustine's Trial Underway In Senate
Job Forfeiture, Fines, Public Humiliation Are High Stakes
The trial before the Nevada Senate is getting underway as this issue of The Nevada Observer goes to press. The length of the trial is an unknown factor as Kathy Augustine is the state's first elected official to be impeached by the Assembly and tried in the Senate. Augustine's attorneys are saying they are planning a vigorous defense, and Augustine herself has maintained a strong defensive attitude through the first stages of the program.
It is illegal for an elected official to use state workers on state time to do campaign work for the official. Augustine pled guilty of just such behavior when ethics charges were brought before the Nevada Ethics Commission and was fined $15,000. Because of the guilty verdict, the constitution declares that impeachment proceedings take place.
The Assembly found Augustine guilty and impeached the controller, leading to trial before the Senate. Governor Kenny Guinn, again by constitutional provision, removed her from office, but with pay, pending the outcome of the Senate trial. If she is found guilty by the Senate, she would probably be removed from office permanently, lose her pay of course, and possibly be charged with some of the expenses of the trial.
It's a foregone conclusion her political life has come to an end.
The Senate will be sitting as a committee of the whole under the direction of committee chairman Mark Amodei (R-Carson City). A special prosecutor, Dan Greco, chief deputy district attorney with the Washoe County District Attorney's office, will handle prosecution and witnesses.
Augustine is represented by Dominic Gentile and John Arrascada.
Augustine, a Republican, is serving her second, and by constitutional provision, last term as Nevada State Controller. She has also served in the Assembly and the Senate.
•••
AIDS Is Rampant In Nevada 2,000 Cases Just In Washoe
Officials Say Five Million New Cases World-Wide in 2003
World AIDS Day, December 1, is being celebrated in northern Nevada with a daylong program of educational seminars, entertainment, and food. According to Lori Smith-Ingberg, Executive Director of the Nevada AIDS Foundation, there will also be health officials on had to do sexually transmitted disease testing.
There are many myths surrounding AIDS, Smith-Ingberg says, and "our goal today is to reach out to the entire community with solid, non-myth information" on the dreaded disease. She went on to say "We have nearly 2,000 HIV/AIDS cases just in Washoe County." Smith-Ingberg calls this alarming, and she says the disease will continue to multiply. "We need to start paying more attention to this devastating disease."
Smith-Ingberg says that women now make up half of all people living with HIV worldwide. Often, she says, the disease is spread from mother to child, and the mother may not even be aware she is infected.
For more information, go to the Nevada AIDS Foundation website: http://www.nvaf.org or you can call, in Reno, 775-329-AIDS.
The event will run from noon to 9:00 p.m. today, December 1 at the Speakeasy Hotel in Reno.
•••
Binion Trial II Ends With Not Guilty Verdicts
Drugs Caused Death, Not Tabish, Murphy According To Jury
Rick Tabish and Sandy Murphy were found not guilty of murdering Nevada gaming figure Ted Binion, but all charges were not dropped. While the jury said more than likely Binion died from drugs not from murder, they did find the pair guilty of attempting to steal some $7 million in silver coins.
Ted Binion was the son of long time gamer Benny Binion, and had reportedly buried millions in silver on his property near Pahrump in Nye County.
Binion died on September 17, 1998 and Tabish and Murphy were arrested in June 1999. A previous trial found the pair guilty, but the Nevada Supreme Court overturned that conviction. Tabish had been found on Binion property attempting to dig up the silver. Murphy was Binion's live-in girlfriend.
The pair could still be sentenced to anywhere from probation to 20 or more in prison. Tabish has already been confined for more than five years, and Murphy has been behind bars for four.
The Buzz Around The Silver State
As Compiled By Our Correspondents
The Capital (The Silver One)
Election Vote Counted, Accepted
(Carson City) --- Secretary of State Dean Heller along with members of the Nevada Supreme Court held the official Canvass of the 2004 General Election and declared the results final. There were no changes from what the touch-screen machines had tallied. Heller says the law states that "on the fourth Tuesday of November after each General Election, the Nevada Supreme Court shall meet with the Secretary of State to canvass the vote."
Heller reiterated how pleased he was with the electronic touch-screen voting machines. "The paper trail did exactly what we expected it to do," he said. For more on the election, go to http://secretaryofstate.biz.
The Elections Division phone number in Carson City is 775-684-5705.
•••
The Capital (The Big One)
Changes In National Wild Horse Law
(Washington, D.C.) --- With huge numbers of wild horses roaming the west's open range, the Bureau of Land Management (BLM) has been attempting to find a solution to the problem. Most experts agree that although the idea of placing wild horses for adoption is a good one, it doesn't alleviate the problem. "There are too many horses, not enough adopters." And costs have been skyrocketing.
Congress just passed a bill that could help bring some of the wild herds a little more under control. Although so-called animal activists are up in arms over the program, BLM officials say this might help considerably. Aging horses and those that simply are not adoptable can be sold for slaughter under the provisions of the new bill.
Prior to this legislation, the wild horse law said that no wild or free-roaming horse or burro could be sold or transferred for processing into commercial products. It's estimated that there are almost 40,000 horses running wild in the west.
Older horses and those too wild for adoption are held at federal holding pens, fed and doctored at taxpayer expense. BLM officials feel the new law will help alleviate costs and space problems.
Senator Harry Reid (D-NV) was one of the backers of the bill.
•••
Washoe County
New Police Chief In Reno's Future
(Reno) --- The search for a new chief to lead RPD-Blue has been narrowed to three following interviews held just before Thanksgiving. Reno City Manager Charles McNeely said he expects to be able to name the new chief sometime in January.
Reno Deputy Police Chief, Administration, Ondra Berry, a 25 year veteran of the Biggest Little City's department is one of the three. Also in contention is Alan Kerstein with 32 years police experience and Michael Poehlman with 27 years behind the badge.
Berry became a deputy chief in 1995. Kerstein is currently Chief of Police for the Los Angeles Unified School Police Department while Poehlman is Chief in Oceanside, California.
There were 65 applicants for the job initially. McNeely said he is pleased with the high level of law enforcement professionals that have been interested in the job. This is "a highly qualified candidate pool for the position."
References and background checks will be made on the three candidates before McNeely makes his final judgment. Deputy Chief Jim Weston has been acting Chief of Police since the announced retirement of Jerry Hoover.
•••
White Pine County
Nevada Northern Railway On Track To Elko
(Ely) --- The city of Ely along with the White Pine Historical Railroad Foundation has signed the contract that will turn the operation and trackage of the Nevada Northern Railway over to them for operation. This could mean commercial traffic between Elko and Ely, the two main commercial centers in eastern Nevada. The contract now goes to the Los Angeles Department of Water and Power (LADWP), current owners of the system for their signatures.
One stipulation in the contract is that there is to be no salvage of the tracks. If salvage does take place, any figure over the contracted sum of $750,000 would revert to LADWP.
Mark Bassett, director of the museum that hosts the rail line is excited by the possibility. "Engine Number 40 will have its boiler operational by February," he says, and he said ridership on the line is up 54 percent this year. Currently, the railroad is operating it Christmas trips, the Polar Express.
There is also work on the McGill depot, and the Nevada Department of Transportation has awarded a half million-dollar contract for track work to that depot.