eva a November 1990 $2.25 uSloeSSOll,.t1' · November 1990 eva a $2.25...
Transcript of eva a November 1990 $2.25 uSloeSSOll,.t1' · November 1990 eva a $2.25...
November 1990$2.25eva a
•uSloeSSOll,."t1'.........................Nevada'sOnly Statewide Business Magazine
Nevada's Utilities: Accommodating Rapid Growth
Meeting the Demand for Cellular Communications
Saving Money with Natural Gas Fueled Systems
Cooperative Water Project: Water for Nevada's Future
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The variety ofways natural gas can be used in a home issurprising ( 0 some people. And, that can bea significantadvantage to a builder who ....'ants to distinguishhimself inthe marketplace.
Overw..helmingly, consumersprefer gas for the things gasdoesbest." Water heating, cooking and clothes drying are
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ing a reliable gas furnace as a standard requirement forcomfon and economy.
By including Southwest Gas in your newconstruction planning and design stages, you no t
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A barbecue stub isa desired addition thatfits perfectly with todav'soutdoor lifestyle.
Gas heating for pool and spa is something your buyerswill appreciate for a
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you'll also be demonstrating yoursensitivity and leadership for a cleaner
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PUBLlSHERIEDITOR
Lyle E. Brennan
ASSO CI ATE PUBLISHERChuck Dandy
ASSO CIATE EDITOR!ART DIRECTORBarbara L. Moore
CONTRIBUTING EDITORSLawrence Barton
George BumsRichard H. BryanRichard Chu lick
Kathy FoleyJay Goldinger
MichaelHorvathJohn Richlin
Debra SheehanR. Keith Schwer
Linn Thome
ACCOUNT EXECunVEChuck Dandy
Th. Se va" , Bul in.... Jour nal il li. lcd in Standa,rdRl lel di:Olla, iI2OA·Bu,inn. ·MclJO, 51l le "" Rc. ional.
Aetvcl'l;SI;n slwul<l ~lacl Chud< Olll dy It (702.)73S-7OO3, or write 10: no.S...... B.ull\u , Journ" .FIISlIn,CnulC Town, Sui'. no,3800 Howard Hupelpp..y, LM V.!U, Nev lda 19109. 0em0vaPhic infOI"""'tiOrIis availoblc "poll~ Ci=lblion may yuy&olrllllOlllb to IIlOI'>lh-n.. " ...... BIul_ Joy...... caponreotr>ea~
b:-'C4 in the Fin ll 1nIcnlale T_ . Suire 120.)$00","""Old HuV- pp,y.1M V',IS, " CVd 89109. l'ollJif; pablisbed"""'lhI)'. bollk poolIorc pUd. Subocripliaarale is $21.00 per year . Ne'*UlMMI pioo iI S1.1S u>6$p<'CiaI~ Iliap cop)' price $-1.00.
AU _lUlU 1990 copyriJht. and~ '".......n./ "9P"arin. in "''BJ is prchi bilrd unl t .. 1O.1l1IKrizccI by the publishel'of r-'BJ.
ou.NOE OF ADDRESS: P1e&S¢ oencl ,,", viouI N <!rcllor mailin,l. bcl& ne w Iddn:u . AUow sillwukl .
EDITOIUAL SUBMISSIONS ; Addre .. &Illubmi, l ionl to !be .ncntion of o.uck D&ndy. Unsolic ited monouscripu mU.r be a«ompanicd by • ..,If•• ddren edslampcd enwelore . f'ollJ " swnea 110 rcsponsibilily torlllUOli~ilcd malena/s.
D1SCLAnlER; £dU....... wit .. npru .teI In lhls_ .all... an _ .......nJ11"-e <111M publlshtr .
Re-Elect
ASSEMBLY DISTRICT 1
Paid for by Cici;:ens [Q Re·clecr ~fa C! Callistt r - President Charles Chandlt r
CONTENTS NOVEMBER 1990 • Volume 5 - No. 11
FEATURES
~l·l·l.dll
HI1.l'!h~'S."i --·--.~-~
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0 " tht CO" tT; Mognnicol/yI,vi/Dlrd spud trains willsoon ushtr ill Ih, 21s1u n lu ry
bringing high -spud. /0...·0<051Ironsporto tiOIl 10 lit .. mosus.Su pagt 6.//l ustrol;on court,ry ofBu hltlCorpora/ioll.
6
11
12
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19
Las Vegas Prepar es for th e Year 2000 in Superspeed FormSl~d. comfonQbl~ . noise/us trains traveling Joftly 01spuds up 10 J()() milt s fHr hollr,cor'),j" g tho usonds ofpasu ngus boundlo r Las VtgOj. A. drrom? Vision ? Reality?
Nevada Power: Meeting th e Challenge of Gro wthF, w comJHlnits in Amrrico or.. obi.. 10 rxpu i' nu a 10 puunt growth ,a,r.F~..r stillwill fi nd 0 mork.., 10 SIIPP0rl such rapid growlh ;'llh.. 1990$. N,"odo PQw~r Compo.nyhasfo und ils~lf in Ih~ ~n\'iabl~ posilion of Julving bolh, BUIwilh growlh, com~s cJulIl~ng~,
Coopera tive Water Project: Water for Nevada's FutureEv~ry w~sl~rn slal~ hos Juld iu shor~ ofprobl~1I'U d~ciding walt r righrs, Sou/hu n N~,'ada,
oft~r 70 )'~ars of upoM/1/ial grawlh. is aumripping us supply ond is /ryinS 10formulQI~
all ~quirabl~ plallfar sJulrillS unc/oim~d riShu wirh Ihru ndshborins counJi~s,
Sier ra Pacific Power: Reigning Power in Northern NevadaF~.... ~nl~rprisn cov~r as much ofNor/h~rn N~vada as Si~rra Pacific Po...'u Compo.llY.Th~ firm's electric service tt rrilary cun,'tS ocross rht Slalt fr om Elko 10 TotWpoh, andcaVtrs a rt s ion bissu than Main~ , Cann~clicul. Massachus~"s and Dtlawart combiMd,
Centel Cellular : Meeting the Demand for Cellular CommunicationsCt l/wlar phants ha\'t~ tvall,td illto a cost tffulivt means fo r busill~sus to tum dOM'lItimtinlo producli"t limt . Ct lll..1Ct llular Company is among Iht 12 largn t cedular companitsill tht notion , and is wtll poiS<'d to mUI tht gro....ing demand f or ct//I/lor service.
20 Nevada Bell Brings High-Tech Phone Service 10 Rural NevadaIt didn't tott long for Jamts and fda Gol/aghu afrural Aus/in to fu l/y oppruia/t liltvalut of Ihtir Id t phont , Tht Gallosh~rs ..·~u Iht firs ' cuslom~rs on lin~ 1051~ar ....htnN", 'ada B" IIbrought 10 Iht ir or..a a mod",", digilal, radiaphant rysltm coU"d BETNS.
21 Centel Introduces Futur ist ic Digital Repair ServiceC"nld is collins olllh" lalesl in digilallechnology /0 rtpoir clIStomtr /iM S ill SoulhtrnNt "odo, Lost manlh. tht company inlroJuctd Onupdoftd compuftri:td rt pair St,..'ietsystem Ihol is twice osfosl. mort accurate and has SUOItr capacity Ihall its pud"c~ssor.
.,Ins/ailing po/rsfor N, vadaPowu 's UlahlN, yodo "on5missian sie. Su pe ge Ll ,
22
24
Commercial Customers Ca n Save with Natural Gas Fueled SystemsWhtn t ntrgy casu f)'pieaUy accounl for fO ,o 20 p"rct nl ofa commtrciol building'saptroling bl/dgt t. OM ....ay'o lowt r IhtS<' casu is to tmploy no/ural sas coolinS .
Nevada Bustness J ournel's 1990 Political QuestionnaireOl/r Stpltmbu "dilion f "oluu d a sun'ty that qui::td condidOlts On busillt u -u lOlt d isSUts, This monlh w" au prOl'idinS a ucop fo r our uod~rs to tott to Iht polls Nal·tm btr 6.
36 Small BusinessSmall Business AdminiSlralion l(JtJns art /WW consid~ud uSptclablt and praftloblt
34 Tax TipsFinancial planning for Iht singlt partnt
32 Speaking for NevadaUllil~d Slalts Stn% r Richard Bryon On induslriol dtvtlopmtnl bonds and smallbusin"ss lox cu di/s.
ViewpointNn 'Odo's educators hart a lesson 10 short wllh us: Qutslloll 6. Ih.. Corporaft Toxfniliolil·t , just dotsn't makt Iht grade.
Business Indicators & AnalysisWilh 01/t )'tS I'lfntd to /ht Middlt East, Iht tCOnomie ripples of lht confliC/ lhut ...iII soonbt ftlt in Iht Uniltd Slalts.
38St nator BT)'on s~ah fo r indus'rial dt vtlopmt nl bonds and smallbusintss lOXcrtdils Onpogt 32.
DEPARTMENTS
Lss VEGAS P REPARES
FOR THE YEAR 2000 IN •••
S leek, comfortable, noiseless
trains traveling safely at speeds
up to 300 miles per hour,
carrying thousands of passen-
gers bound for Las Vegas .
A dream? Vision? Reality?
Not too long ago there were few whoeven dared to th ink of something soimaginative, futuristic and far-fetched.Few inLas Vegas, that is, with theexception of its fonner mayor,William Briere.
Twelveyearsago,thehigh-spiritedchiefexecutive ofthe "entertainment capitalofthe world" was diligently plugging hisidea. The possibility of building a masstransit system which would link the twohonest tourist de stinations in the nation.perhaps world, together. Southern California. (boasti ng attractions such asDisneyland.Magie Mountain.Sea World.Knottsbe rry Fann and othe rs) plays hostto almost 40 million visitors per year,while Southern Nevada ope ns its doors tonearly 20 million tourists annually.
Las Vegas City Cou ncilman ArnieAdamsen, chairman of the Cal iforniaNevada Super Speed Train Commiss iontennedBriare ' s 1978prophecyregarding
a speedtra in for both Southe rn Californiaand Nevada as ahead of its time ."Briare ' sidea." Adamsen said, "was before itstimein terms of public perception and acceptance in 1978 . One yet to be develo ped."
Briare, often taun ted by various civic,state and business leaders for his "speedtrain infatuation" had as his prime rnotivator, "the linkage factor".
"Why at the time, there were literally' millions' oftourists from various parts ofthe country visiting Southern California,many of them curious about Las Veg as.But their limited time would not allowthem to visit I envisioned both metrcpolitan areas being linked by a new era intransportation . Something fas ter thandriving, yet less expensive thanair travelthat would bind the two destinations ofthe Las Vegas and Southern Californiatouri st," Briere recalled.
Briare located some Japanese businessmen who were visiting the UnitedStates in 1978 representing the JapaneseNat ional Railway (JNR). Their travelstook them to Te xas, where they met withofficials to discuss the feas ibility of developing a high-speed tra in, linkingHouston, Dallas and Fon Wonh.
The JNR representatives were invitedto Las Vegas by Briare to discuss theirsystem.The six visitors took advantage ofthe omnipresen t energy crun ch affectingLasVegas as well as the rest of the nat ion.They emphasized how energy efficienttheir method of transportation proved tobe, and according to Briere, "That wasa hard sell as far as I was concerned."
The mayor assembled a task force commission consisting of 30 civic and business leaders to study the speed train concept . It was chaired by Jack Libby, whowas later appo inted by then-GovernorRichard Bryan to serve as chairm an .
The commission suggested that a feasibility study be conducted to identify thesupers peed train' s pros and con s. The resuit? According to Adamsen, " It (thestudy ) was extremely positive. The commission 's fmdings were such that thisnew method of transportation was notonly warranted. but considered vital."
Briare too. termed the 5300,000 study"very successful". Suppon for the projectpicked up steam as the city council, theClark County Commission , the Las Vegas Conventio n and Vis itors Authorityand the Las Vegas Chamber of Commerce ju mped on the speed train bandwagon. Recalls Briere, "They all saw theneed for this proj ect and realized the tremendous economic impact it would haveon the Southern Nevada economy andunanimously agreed the train would beagood thin g. Not too many people questioned my sanity after that," he said.
THE MAGNEnC lLvrrATION
ERA B EGINS
T welve years late r, enter Magnetic levitation (Maglev) - an innovat ive, advanced and futuristic transport sys temthat traveled at speeds between railwayandaircraft Maglev is the result of overtwo decades of bri lliant technological de-
The Transrapid 07 prototype, undergoing rigorous testing at the Emsland testfacility ill Germany, is capable of cruising at speeds up to 310 milesper hour.
velcpmenrand testing.The Maglev superhigh-speed train ranks with the world ' smost sophisticated transportation systems:however, this sys tem, based on magneticlevitation technology, has the special p0
tential to initiate revo lutionary and dynamic changes to surface transporta tion.
Says U.S.Se natorHarry Reid (D- Nev.],"The speed train, with all its stunningtechnological advances , has been provento bethe wave of the futu re in Europe andJapan, and I be lieve that upo n its completion in both Southern California and Nevada, the rest of the United State s willobserve its benefits, mainly the tremendous improvement in transportation andenergy conservation ."
According to Adamsen, other highspeed tra in commissions are already being formed throughout the count ry. Hecited proposed lines between metropolitan areas suchas Pins burgh/Harrisburgh,Tampa/Miami, New YorklB altimorelWashington, HoustonlDallasIFort Worthas well as several in Minnesota.
Regarding the latter, Adam sen notes,'The director of the Minnesota Commission of Transportation, Len Levine, isvery interested in implementing a systemwhich wou ld link the metropoli tan com muniti es of Chicago, Minneapolis and
Milwaukee: ' A feasibility study is currently being cond ucted in Minnesota , according to Adamsen .
MAGLEV' S T RAVEU NG
A DVANTAGES
T he Maglev train,traveling at speeds ofup to 300 mph, will cover the proposedAnaheim -Las Vegas route in close toseventy-five minutes - far surpass ingthe travel time of any of today ' s mostadvanced railroad systems. The travelerwill enjoy the benefits of time-savingtrave l in both comfort and safety.
Clark Count y Commissioner layBingham, also a member of the California-Nevada Super Speed Gro und Transporta tion Commission was enthusiasticabout the system, as well as its travelingadvantages." It literall y flies magneticall yalong aguide way while operatingat speedsfrom 250 to 300 mi les per hour. II' ssmooth, quiet, without vibration andex tremely fast. It' s qu ite an impressivemethod oftransportation, one which we' llbene fit greatly from," he said.
The safety of the high-speed train isalso one of its features. "Thi s fonn oftransportation has a safety record that' sperfect worldwide," boasts Adamsen . "In
over 20 years , there has not been onesingle life lost in association with highspeed rail ," he continued.
Wh y the high degree of safety assoc iated with Maglev ? According to SuperSpeed Commission Vice Chainnan DonRoth , it's due to the intricacy with whichthe system is built. 'The Maglev providesan unprecedented safety factor becausethe train literally wraps itself around theguideway, thus making it physically impossible to derail," Roth explains.
Enforcing this inherent safety feature,the system has combined aircraft safetydesign standards with conventional railsafety standards. Furthe r safeguards include: multiple electronic safety systemsto eliminate human-failure factors ;multielectronic safety systems incorporated intolevitat ion, guidance andpropulsion; vehicle operations that are based on automatic fail-safe systems controls; electri cal insula tion which meets the highestaircraft safety standards; prac tical eliminat ion of fire hazards by use of the latestaircraft fire prevention standards; andprotection aga inst lightning and othe relectrical disch arge . (A task force toimplement these safety standards has beenengaged in this act ivity for abou t a year.)
C HAUENGES FROM THE
A IRUNE I NDUSTRY?
B ecause the Mag lev poses a ccmpetltive threat, one might assume the airlineindustry would mount some formidableoppos ition to the high-speed train.On thecontrary, many airlines support the ideaof the Magelev.
Wh y? Because , according to onespokesperson at U.S. Air , "High-speedrail is a positive add ition to transportation. Airline s, which aren 't as profitableon short commuter hops, are embracingthe speed trainconcept."
Southwest Airlines originally opposedthe high-speed commission underway inTexas, but now, because the train wouldallow them to focus onthe lucrative longer
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route s. they are supportive of the system.According to Erv Koening, spokesman
for Bechtel International. (bui lder of thespeed traintransportation system)"We 'renot perceived as a threat to the airlineindustry because of our short-distanceservice.For a200- to300-milehaul,Maglev is an expedient, economical traveloption. Anything ove r that distance andthe specific advantages ofair travel overtake those of the high -speed train ."
Bingham and Briere agree. Says thecommissioner. ',0 be honest, they (theairline industry) were worried at nest. butthey nowunderstand the speed trainis noc.participating in a long -haul market. Andto the airline industry, anything less than600-miles-plus just isn't that profitable."
Brierenoted that in Germany, LufthansaAirlin es was a major investor in the concept of the magnetic levitation vehicle ."They showed an enthu siasm in the sys·ternand in its success, and I thinkthe sameenthusiasm will be shown here," he said.
However, that does JlOI preclude thetrain from extending its routes in the future. While at the onset the train will belimited to a singl e 300-mile haul, accordingtoAdamsen,"Fiftypercentof the U.S.population lives within a 500-mile radiu sof a major metropolitan area. I envisionthere will bea number of super speed trainsystems, each consisting of a hub andradiating spokes conn ecting major metropoli tan areas and their suburbs within a500- mile radius. However.I don't see thesystem traveling across cou ntry."
Former Las Vl!'gasMayor Bill Briare
F ROM AN E NVIRONMENTAl
STANDPOINT
T he proposed Mag lev project fromAnaheim to Las Vegas will prov ide analternative transportation system for bothinters tate travelers and Southern California commuters. Efforts have bc:enmade toselect routes between those two terminalsthat will avoid upsetting residential andenvironmentally sensitive areas.
According to Ken Kevorkian of theCalifornia Transportation Commission,"Whi le most transporta tion systems are aburden on the environment, Maglev isqu ite the: opposite. Its land requ irements
Las Vegas Ciry CouncilmanAmiI!' Adamsen
are minimal and do not intrude on thelandscape. It ' s not a source of air pollution, and it's unique propulsion systemkeeps noise levels surpris ingly low ."
A very important aspect of Maglev is itslow noise level. According to Adamsen,when riding on the German test system,"Ihe cattle underneath the rail pillars wentabout their business undisturbed as wezoo med past them overhead."
Everyone Agrees.
Just Say ........... To Question 6.
During peak operating periods at 250miles per hou r, the Maglev ge nerates avera ge sound le...el s o f approximately 7 1decibels. while an auromob ile tra velin g at6Sm iles per hour produces approximately76 decibels. And since Maglev lev itat esand therefore has no wheel s. it operateswell below the noise levels ofother modesof transportation at sim ilar speeds. Thusfar , there 's been little opposition fro men v iro nmentalists . "Sim pl y put," accord ing to Bing ha m, "they lo...e it !"
M AGLEV'S B ENEFITS FO R
SOUTHERN NEVADA
I t is estimered that by the year2ooo, fivemill ion annual riders will take ad ...antageof the M aglev. The tota l projected cos t ofcom pleting the double-guideway systemwill ap proach $5 billion .
Both Southern California and Nevadawill share in the Maglev ' s ec onomicwindfall. In Nevada for example , 23 .000to 28.000 long-term jobs with $530 mil-
"The implementing of the Ana-
heim-Las Vegas Maglev system
can serve as a pilot for future sys-
terns nationwide. Theen tire coun-
try will be watching our efforts."
lion to $630 million in annual earningswill be created . Additionally. m ore than10,000 short-te rm jobs rel ated to the co n-
st ructio n o f the sys tem are anticipated.Acc ordin g to Sena to r Reid. " The
implement ing of the Anaheim-Las VegasMag iev system can serve as a pilot forfuture syste ms nat ionwide. The entirecountry will be watching our efforts."
Bri are , whodoesn'tmind being referredto as "The Las Vegas Fatherofthe SuperSpeed Train" concurs. "We're on thethreshold ofso me th ing v erybig, and we'llsee it (th e futu re) unfold before our ve ry
eyes, The only thing I re qu est is to be oneof the firs t riders on board." he said wi tha prideful chuckle .
Larry Miller. vice presiden t of pu blicrel ations at Bechtel , sums it up . " It 's avery exciting de vel opment for Bech tel.California, Nev ada and America . It tiestogether tw o of the world's largest touristcommunit ies. Bechtel looks forward to199 7 when the"fag lev Super Speed Trainbecomes a re ality." •
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Add itional offices in Phoe nix, San Diego, Sacrame n to and Ontario.
10 ~ . NOVEMBER 1990
We're there when you need us...
UTILITIIS
NEVADAPOWER
Meeting theChallenge ofGrowth
F ew companies in A merica are able
to experience a 10 percent growth Tate
each )'t'aT. FeweT snll will find a rnaT-
ket to support such rapid growth in the
1990,. A> II.. mnj'" providn of,kc·
tricit1 in Southern Netuda, Nevada
PowerCompan) has found iuelf in the
enviable position of having both. But
with growth, comes challenge.
The cha llenge facing Nevada Power isfonnidable . Southern Nevada's population is growing at 10 percent a year andaveraging 2,500 new residen tial and 150new commerci al customers eac h month .This influ x is add ing to a system that se tan ail-time peakdemand record of 2,248megawatts durin g the summer of 1990.
Satisfyin g Southern Nevada's energydemands while keeping Nevada Power' srates among the lowes t in the nation requires a delica te balance .The company isable to maintain thi s balance by generat ing energy from low cost coal units andpurch asing power from other utilities.
To insure additional energ y purchasesare readily available, Nevada Pow er is
strengthening its transmission ties withother utilities. Curren tly, the companyhas contracts with oilier utilities forenoughpower to supply 127,000 reside ntial customers . A new transm ission line, whichbegan operating July 23, 1990, connectsNevada Power ' s sys tem to that of UtahPower & Light and allows for the purchase ofup to 300 megawatts of capacity,enough for 67,000 residential customers.
Nevada Power will purc hase additionalcapacity from independent powe r producers and coge nerators over the nextfour years. Mission Energy Company, anindependent power producer, will com pleteconstruction of its plantin 1991 .Theplant will provi de enough capacity for46 ,000 residential customers. NevadaPower will operate and provide fuel forthe plant and receive the energy generated, resulting in a substant ial savings toNevada Power customers.
Add itional power will be purchasedfrom five independently ow ned powerproducing plants which will become operational over the next four years. whenall these plants are functioning, they willprovidea total0{337 megawatts -enoughfor nearly 75,000 resident ial customers.
10order to mee t the needs ofcustomersandthe grow ing distribution system, Nevada Power recentlyopened the C.L RyanOpe ration s Center in North Las Vegas.The new 2S-acre facility, equipped withthe latest technology, will improve coor-
Worku s shown installing poles for therecently co mpletedUtahlNe~'ada transmission tie.
d ination of 225 em ployees and the equi pment required to maintain the nati on' s fas tes tgrowing electrical sys-tem . Currently, there
are over 10,800 miles of power lines spanning the fum's 4 ,500 square miles of service territory.
Th e North Las Vegas site was selectedfor its close proximity to I-I 5 and its roomfor future expansion. In addition, NevadaPower wanted 10 join othe r corporation sin becoming pan of the new busine ssdevelopment taking place in the northernend of the valley.
With Nevada Power' s serv ice territorycontinuing to be developed at a recordpace , a developer-installe d-undergroundprogram was impl emented in June 1990 .The program is facilitating the installation of underground electrical cable inresidential projects by allowing devel opers to install Nevada Power equipmentand material, while the company coordinates, inspects and tests the installationprior 10 energi zing the lines. Companyofficia ls and contractors are pleased withthe success of the program, which hashelped alleviate a large backlog of work.
As Southem Nevada moves into thenew decade. consideration must be givento the impact of the area 's growth andenergy needs on the environme nt andthecommunity's quality ofJife. As part ofthecompany' s commi tme nt. environmentalconce rns are included whe n planning forfuture development. By doing so, thecompany can safely meet the needs of theenvironment, as well as, the energy needsof Sou thern Nevada. •
/4JI# • NOVEM6U 1990 11
E tJeT since the pioneers crossed coer ~ M ississippi RitJeT on their wwwan:f
expansion to o~n up this gTeat country. water - and ~ rights to iu use - has been
as :mportant, and sometimes more so. tha n titk to the lands tht,develo~d . Without
~ right to use water. the land was oofuekss.
Every western sta te has had it 's share 0/ probkms deciding wcrer rights. In some
areas 0/ Net'ada, three generations 0/one fam il, haW' fought tooth and nail to
preW'nt encroachments on their wate r. To them. it is a priceless necessiry.
12 ANI . NOVEMP.ER 1990
Now Southern Nevada, after 70
-years of exponential growth, isoutstrip.
ping its supply and is trying to formu.
late an equitable plan for sharing
unclaimed rights with three neighbor·
ing counties. As expected, strong oppo
sition has been tIOiced.
Nevada Business Journal does not
endorse eitherfaction - pro or con. We
do however, adoocate the calm discus·
sions necessary to satisfy all concerns.
The following article written by
Patricia Mulroy, general manager of
the Las Vegas Valle)' Water District
briejIy outlines what hasbecome a (.lery
complex proposal.
• • •
There are some fundamental questionsregarding the waterdistrict's Coope rativeWater Projec t that, once answered, willdispel some of the miscon ception s surrounding the plan. I'm taking this opportunity to answer some of those questionsand to set the record straight.
Why is the water district attempting tosecure an additional source of water
supply for all ofSouthern Nevada? Themajority of our present water supply isderived from the ColoradoRiver-roughly80 perc ent. The remaining 20 percentcome s fro m groundwater in the Las Vegas Basin. Every drop ofwater we can getfrom our underground basin is being utilized and, by the tum of the century everydrop of water we are entitled to from theColorado River will be put to use, even ifour growth rate slows down and conservation measu res are effective . We areplanning ahea d to develop our water resources , because without question, wewill need more water in Southern Nevada.
Let' s say that no one in Southern Nevada did anything, and all available water is put to use - what will happen ? Notone mote house would be built in Southern Nevada, not one more business wouldbe allowed to deve lop or expand. Th eci ties of Las Vegas, North Las Vegas,Henderson, Boulder City, Laughlin andall of Clark County would be unable toserve one additional customer.
Further, the Bureau of Reclamationpredi cts a drought on the Co lorado Riverwilloccur sometime before the year 20 15.When and if that happen s, the bureau willimmediately require all its water customersup and down the river to reduce theamountof water they 're using.
The result could very rapidly plungeLas Vegas into a situation similar to thatcurrently being experienced in Santa Barbara. Skeptics have told me, " 11 ' 11 neverhappen." Unfortunately, that' s just whatman y residents in Santa Barbara said and,as a result, Santa Barbara did not participate in a major multi-county water importation project. A recent story in USAToday focu sed on Santa Barbara' s presentplight, showing theircurrent water supplyis 55 percent of current needs.
Where is the best place to obtain newsourcesofwater? Those ofus responsiblefor supplying water to the citi zens ofSouthern Nev ada know that an alternatesupply must be sec ured, and we 've care full y evaluated all resources that areproximate to our area. The most obvious
source ofaddit ional water is the Co loradoRiver. Being able to enlarge Nevada'sshare from this massive body of watermakes sense logistically , financially andfacility-wise. However, upon closer examination, it 's a political and legal nightmare - and virtual ly impossible.
In the 1920s. a compact was signedamong seven Colorado River stales dividing the river sta tes into what are called theUpper Basin State s and the Lower BasinStates. Four states are included in theUpper Basin - Colorado, New Mexico,UtahandWyoming .1bree states comprisethe Lower Basin - Arizon a, Califo rniaand Nevada. Each group of basin stateswas given an entitlemen t to 7.5 millionacre-feet of the Colorado River to bedivided among them. In the Lo wer Basin.California receives 4.4 million acre-feet,Arizona rece ives 2.9 million acre-feet .and Nevada receives 300.000 acre-feet.
Since the signing of the compact, therehave been innumerable court cases lit igating thi s agreement; Supreme Courtdeci sions have been stacked one uponanother supporting it. Further , there is atreaty with Mexico guaranteeing a minimum flow to that country.The law of theriver has become so complex and, from apractical standpoint, so convoluted, that itbecome s impossible to make any changesunless all seven states agree .
Even the smalles t changes on the rivermeet with fierce opposition.To date, therehas been nothing but resistance to anyproposal s. Given the fact tha t SouthernNev ada needs an addi tional source ofsupply by the tum ofthis century, lookingto the Colorado River for a solution is notfeasible. A recent news story on SouthernNevada' s water dilemma featured an interv iew with an offi cial from the Bureauof Reclamation, who confirmed that a renegotiation of the compact was not aviable altern ative.
How do we know there is water available in the northern counties? The districtis basicallyusing a plan thai wasdevelopedin the 1960s by the Nevada stale waterengineer. This plan is based on a United
J>.iN • NO'vtMaER 1990 13
States geological survey.done by the federal government . which shows extensiveresearch on the various groundwater basins in Nevada. The plan essentiall yidentifi es a series of basins in northernClark, Lincol n, Nye and White PineCounties as a furore wa ter supply. It showsthere exists in these basins approximately300,000 acre-feet of grou ndwater uponwhich the state wate r engineer can gran t awater right - water rights that today do
We are still seeking an approach
that is beneficial to all - one that
will protect the farmers. prOtiide
additional resources for the commu
nities in ourthree neighboring coun
ties, protect wildlife interests, and
protect the environment while still
bringing to Clark Count] the addi·
tional water resources this commu
nit) must have to protect its future.
not belong 10, or are in use by anyone else.The wa ter on which the water d istrict filedits application s is nol wate r currently being used by farmers. ranchers. or anyoneof the small communities in the affectedbasins. Nor is it being used by any federalagencies such as the U.S. Park Serv ice.U.S. Fish and Wildlife. or the Bureau ofLand Managem enL
What agencies art actually involved intM l4--attrdevt lop1Mntplan ?Becausetheyrecognized the need for an al ternate watersupply and the fact there was wateravailable to the north of us, the cities ofLasVegas. North Las Vegas. Henderson.Boulder City. the town boards of thevarious unincorporated towns, the ClarkCounty School District. the university.nol to mention private organizations suchas the chambers of commerce , labor organizations and other businesses passed
reso lutions supporting a cooperative water development project .
What about tM residents in the northtrn countits? When the Clark Cou ntycommission set out on this endeavor tosecure additional water fo r SouthernNevada' s future , it wanted to do it in sucha way that our neighbors to the northwould not only be protected but. indeed,would reap be nefits for their respectiveareas . In the medi a, we've been lambastedcontinu ally for failing to have a "plan."But we purposely decided not to developa fully detailed plan because our intentionfrom the very beginning was that the fourcounties would sit down together anddevel op a join t program. We are stillseeking an approach that is beneficial toall - one that will protect the fanners.provide additional resources for the communi ties in our three neighboring counties . protect wildlife interests, and protectthe environment while still bringing to
Clark County the add itional water resources this co mm unity must have to accommodate future growth.
Has this typt ofprojtct bun successfu lly implemented Qnywhtrt tlse? Thepess imists will tellus it can't bedone. Weknow it can .We can loo k to our neighbo rsin other states , such as Utah, and see howthrough a cooperat ive effo rt , mult iplecounties have worked together for thebenefit of all.
Are there ways tomitigate wildlife concerns, and in fac t crea te add itional wildlife refuges en route? Yes. Are there waysto econ omically compensate an area forlost revenues? Yes. And to this day, ClarkCou nty is still seeking dialogue withLincoln, Nye and White Pine Counties toput together a comprehensive plan thatwill not only secure the future for thepeople of Southern Nevada. it will alsoenhance, protect and build communitiesthrou ghout our grea t state.
And las t, but most importan t, thankstoall of thepeople inClark Cou nty who arecooperating in our conservation efforts we're beginning to see • difference. Keepup the good work. •
Re-Elect
MikeNE
Senator District 6• 4 years, Nevada Senate District 6· 8 years, Nevada Assemblyman District 4• 100% voting and attendance record during entire service
in Legislature, 1989-90 Chairman, Committee on Head Trauma, 12years, Com m iNeeon j udidary• 4 years; Chairman, Legisliative Affairs & Operations Com mittee• 8years, Nevada Education Committee• 4 years, Nevada Legislative Com m ission, 4 years, Senate Com m ittee Human Resources
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Look at the 2,400 square miles of Clark County as a whole. and you'll be overwhelmed Look at it through theeyes of a national communications company like Centel. and suddenly it feels as intimate as a small tOWI1
with business opportunities as dose as next door.~ Because Southern Nevada is the only major metropolitanarea in the country with an all-digital, all-fiber communications network.. ." " All of which makes connectionsquicker, conversations dearer. data more accessible and service more efficient to all our 800,000 customersnot to mention less expensive than most anywhere else. And with cooperation between government. industryand Centel. irs no wonder Clark County attracts 4.000 newcomers a month. "
,.;I!I!I So whether yOUT business is across town or across the country. Centel "~'Nr'~Lmakes everything as dose as your back yard-and we can't think ofa more "'~j •.-.jcomfortable place to do business. For more information call (702) 877-7 171, WHERE PEOPLE CONNECT
»N • NOVEMBER 1990 17
A nother succe ssful effortis the "Good Cents" energ y·efficient home program introduced in 1989 in cooperation with theBuilders Association ofNorthem Nevada.,the Builders Association of Western Nevada and the Govemor's Office of Cornmunity Services. Good Cents homes areconstructed using energy conservationtechniques that raise the home 's valuewhile lowering its energy usage andcosts.The pro gram has been adopted by morethan 40 builders in Northern Nevada whohave committed to completing over 600homes with the Good Cents desig nat ion.
track record for providing quality cus tomer serv ice. The company received a1989 Marketing Achievement Award fromthe Edison Electric Institute, a natio nalassociation ofe lectric utili ties, for creating an energy management manual anddeveloping an energy utilization trainingprogram for the Southland Corpor ation .Southlan d will use the manual to implement conse rvat ion measures in its 7Eleven convenience stores nationwide.
Approximately 20 to 40 cents of eachbusiness dollar spent on electricity goestoward lighting, according to industrystudies. The biggest culprit is inefftC tentincandescent lightin g. The company'sLight Brigade program rewards commercial customers ...ith cashrdJares for COD
vetting theirbusinesses iOem:rgy~fficie:I:I:lighting. :\iore than 200 fums bal."e 10r.participated in this CO§t~tticg~
Am ong participan u is the Raky' sSuperstore chain, where eoergy cceservation technology has beenused10 redDcelighting costs without sacrifJCing light:levels. Since 1989, Raley 's bas recen'cdnearl y $70,000 in rebates from Sierra Pa-cific , and the stores have reduced theirtolaIlightin g ene rgy needs by more thana
half-megawatt (one me.ga:w:a:tt:,.......__,serves 650 residential ~
customers ).
panie s were fonned to provide gas, waterand eventually electric ity, to the silvermines of Virginia City. These firm sevolved into today' s utili ty.
Although the Virginia City mines weredepleted by the late 1880s ,mining is onceagain enjoying a staJring role in Nevada 'seconomy.During 1989,miningaccounledfor 18.9 percent ofSiem Pacific Power' stotal electric sales. By 1993, itis expectedto approach 2S percent. Other large co mmercial customers include the northernNevada hotel-c asino industry and ski resorts such as Squaw Valley USA.
B ecause of major changes~inlhevlj1j1y indvs11)', cVs10mer
service will be vital during the1990s and has even more impor-tance in day-to-day ope rations.
Sierra Pacific is placing new emphasison serving small- and medium-sizedcommercial customers. The re are 27,500customers in this cate gory in the company ' s Nevada service territory , andtheycontribute up to 40 percent of total revenues generated by all Siem Pacific ' scommercial customers.
A new team of marketing repre sentatives,dedicated to serving thispatticticularcustomer category, was recently formed.Their primary focus will be to assist business owners in managing energy costs,
Sierra Pacific has already established a
than Maine, Connecticut, Massachu-
50,000 square mires, a region bigger
tric service territory CUTtltS across the
PowtT Compan:t. The compan:t 's elec-
NOTthem Nevada as Sit1Ta Pacific
sew and Delal,OOTe combined.
state from Elko EO Tonopah,andcown:
UTILITI£S
Reigning Power
in Northern Nevada
SIERRA PACIFIC
POWER COMPANY:
This presents a spec ial challenge tom.wJ'ol~ium 's 1,733empJoJ'ees. whofreq uently travel great distances throughinhospitable terrain to make repairs orperform routine maintenance on SierraPacific's 21,000 miles of overhead andunderground electric lines.
Sierra Pacific Power provides electricserv ice to 235,000 residential and com mercial customers in Northern Nevadaand northeastern California. In addition.Siena Pacific's w estpac Utilities division distributes natural gas to 74,000 accounts and supplies water to 53,000 customers in the Reno-S parks area.
Sierra Pacific was established as acompany in 1928. However, the utility's rootsandhistory go back: 125 years to the daysof the Comstock: Lode whe n small com -
S ierra Pacific has con tinued to improve the efficiency of its operating departments, and the company' s threepowerplants continue to be top performers.Generating Units One and Two at theValmy plant near Battle Mountain havebeen available to serve customer needs89.4 perc ent and 90.1 percent ofthe time,respectively, since coming online in 1981and 1985. The national "availability" average for comparable coal-fired generating units is 79.6 percent.
Meanwhile, the company has continued to hold the line on utility costs.Household utility costs in Reno-Sparksare 12 percent below the nationalaverage .
Commercial and industrial rates alsocompare favorably teretes in otherwestemcities. Electricity costs for commercialindustrial clients in Reno-Sparks are lowerthan they are in Los Angeles-OrangeCounty, Sacramento and Phoenix. •
Th anks to a recent chan ge in government regul ation s. buyers of Good Centshomes can take advantage of higherqualifying ratios and larger mortgageamounts on HUD/FHAloan s not offeredto other home buyers.
S ierra Pacific also serves many fanners and ranch ers in Northern Nevada. Thecompany 's pilot project to assist agricul tural irrigators in reducing energy consumption received a Governor's EnergyAward for 1990.
Th e project began in 1986 asen effort toreduce agricultural power consumptionand demand by converting high pressuresprinkler systems to operate atlowerpressures. Irrigationpumps in the Winnemuccaand Yerington areas were monitored andconverted to Iow pre ssure sys tems. SierraPacific provided financial incentives forretrofitting and replacing the inefficientsystems and paid all engineering costsassociated with the pilot project. The endresult: each test system saw a reduction inenergy consumption that shaved an average of $2 ,400 off the annual bill .
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DETAILING
"EVERYTHING WE TOUCH TURNS TO GOLD."
THE COMMUNICATIONS
CENTEL CELLUlAR:
Meeting the Growing Demand
for Cellular Communications
IoH# • NOVEM&E~ 1990 19
This new construc tion is part of a $12million investment Centel Cellu lar ismaking in its Las Vegas system this year.As part ofthis investment, Centel Ce llularrecentl y employed sectorization technology to expand its frequency and voicechannel capacity. "Sectoriz.ation enablesus to divide a cell site into six sectors.Each sector then has its own set of voicechanne ls.The result is that the voice channel capacity for a cell doubles from 45 to90 ," explained Mcleod. "The implementation of the process has been complex and time consumin g. Howe ver, theend result will be a much improved system." Five of Centel Cellular' s cell siteshave been retrofitted thus far.
Looking toward the future and cellular'scontinued grow th in Las Vegas, the company will soon complete the installationof a Motorola model 2500 switch, whichwill increase the portcapacity of the overallsystem. "T cday' s changes help set thestage for d igital , the next generation ofcellular techno logy," added Mcleod.
Spec ial featur es such as voice mail which enables a caller to leave a messagefor the user-call forward ing. three -waycalling and cal l waiting are now availableto customers so they can still be in toucheven though they are tem porarily out ofreach . And , for those who spend a goodpart ofthe time on the road outside the LasVeg as area, Centel Cellular' s " followme-roaming" service enabl es them to bereached in more than 270 cities throughout the United States and Canada. Customers simply act ivate " fo llow-meroaming" by pushing a two-digit code ontheir phones. That done, calls to the userare automatically forwarded throu gh thenetwork. As well , Cen tel Cellu lar has anextensive roaming agreement network thatallows customers to use their cellularphones in more than 435 cell ular systemsin the U.S. and Canada.
"At Centel Ce llular, we are committedto providing ou r customers with the latesttechnology, as well as the best personalservice attention," said Mcleod. •
45 markets, Las Vegas has the largestnumber of customers and is its mostunique. "Las Vegas is experiencing tre mendous growth with an estimated 6,000people coming into the area each month ,"said Linda M. Mcleod, general managerof Centel Cellular Company of Nevada."We've enjoyed remarkable growth inthe five years we have been operatinghere. During the first year, we surpassedour acce ss line projection by almost fourfold , and each year since our number ofcustomers has doubled," she said .
"One ofthe primary characteristics thatmakes Las Vegas different from othercell ular mark ets is its high percentage ofportable phone users," Mcleod add s."More than 80 percent of our almost20 ,000 customers are portable users."Given this fact, Centel Cellular specia llydesigned its cellular sys tem to meet theneeds of portable use rs.
Whe n the company began operating inLas Vegas in 1986, itconstructedfive cellsites to facili tate the smooth transfer ofcalls for a user moving throu gh the system.Becau se of the city ' s rapid growth andincreased demand for cellular co mmunication, Cente l Cellul ar, as oflate September, had 12 cell sites in place . By the endof this year, there are plans to completefive more sites. The se cell sites will belocated in the areas of Spring Mountain,the Lakes, Green Valley, Nelli s Air ForceBase and Glendale.
time. As well, the benefits of cellular
According to a recent indu stry surveyreleased by the Cellular Te lecommunications Industry Association, almost 4.4million Americans are now using cellulartelephones. This benchmark was reachedduring the first half of 1990 and is quiteimpre ssive since the first cellular sys temwas activated only seven years ago.
With more than 149,000 acce ss lines in45 markets across the country, CentelCellu lar Company is among the 12largestcellular companies in the nation, and iswell poised to meet the growing demandforcellularcommunications.Dfthe fum ' s
cellularphone in thefamil, auoomobile.
the geneTal consumer who appreciates
alike to tum downtime into produetit!e
means fen- small and farge businesses
communications are being reclized lry
theccneentence and securit)valueof a
powered execunoes, to a cost ef[ectitle
CellufaTtelephoneshaw ewloed[rom
the stigma of a high-tech tOJ fOT high-
,
TlUCOMMUNICATIONS
"When the phone rings, we get excited!"
Nevada Bell Brings High-Tech
Telephone Service to Rural Nevada
Itdidn't take long fOT James and Ida
Gal1agheT of nnal Austin to full,
aPPTecia~ the valueof theiT~lephont.
Th Gallaghen wert' the lint cus-
tomers on line Ian year when Nevada
Bell brought to their area a modem,
digital, radiophone sJstem called
BETRS (&sic Exchange Telecomma-
nicatioTU Radio Service).
In the Gallaghecs' case, the timingcouldn' t have been berter. Faced with asudden family emergency, they put thenew convenience to immediate use.
Just hours after the phone was instal led,their son Denny was hurt in an accident an unfortunate encounter between hispickup truck and a stray cow. AmongDenny's injurie s was a nasty head woundthat required several stitches. Later whena virulent staph infection set in, Dennyhadto be hospitalized. He wes treated firstin Battle Mountain and then transferred toWashoe Med ical Center in Reno. All thewhile, the Gallaghers kept track of hisprogress by telephone.
Denny' s doing fine today and so is the
20 1tN# . NC/YtIwIIft 1990
Gallagher ' s telephone service - the firstthey 've had in more than 19 years . Nevada Bell ' s BETR S project is bringingstate -of-the-art telephone service to anumber of customers like the Gallaghers,who live in the beautiful, but isola ted,Reese Rive r Valley near Austin.
With BEfRS, telephone signals to andfrom the switching office in Austin aretransmitted by radio to a mountaintoptower and then either to a repeater stationor directly to an antenna on or near theindividual customer ' s premises. Radiowaves and/or buried cable carT)' the callthe rest of the way to the telephone set.
Because much of the Reese River Valley has no commercial electricity, manyof the repeate r stations and premise antennas are equ ipped with solar powe r. Nevertheless, line quality for both voice anddata transmissions is excellent, withnoiseleve ls surprisingly low .
BETRS providesa profound contrast tothe rudimentary commu nications systemthat it replaced.Tbe eertiersystem.knownas the Shoshone Telephone Company,served just 12 ranches and consistedof61miles of above-ground galvanized wireattached to roughly-hewn wooden poles.As might be imag ined, transmission quality was sporty at best.
Toda y, two BETRS systems extend adistance of about 90 miles through theReese River Valley and serve 86 customers from Boone Creek to lone.The servi ce
they get is just as modem andreliable as any Reno customer
receives. Nevada Bell made asubstantial capital investment to
bring this technology to CentralNevadaandit wasableto dosoerne
cost to its customers.The BETRS project began in 1988 as
pan. of the telephone service improvement plan. a broad-based program to upgrade service and reduce rates andinstallation costs for man y Nevada Bell customers . The program was agreed to byNevada Bell. the Public Se rvice Commission and its staff and the ConsumerAdvocate ' s Office . utilizing rev enuesNevada Bell had accrued in an exceptionally good earnings year.B~S tec.inology is currently being
used in more than 80 nat ions but NevadaBell's system is unique . It uses a frequency normally set as ide for educationalTV. This is possible through a waiver tothe company issued by the Federal Communications Commission.
BETRS use of the educational bandwidth prev iously assigned to Universityof Nevada-Reno had the blessing of theuniversity and the strong back ing ofSenator (then Governor) Richard Bryan.
During this summer' s congre ssionalrecess, Senator Bryan toured the ReeseRiver Valley and talked with severalBETRS customers . The senator was acoom~ed ~ Mn. Bryan, ms RwtiField Representative Tom Baker, LanderCounty Commissioner Ray Williams,Nevada Bell President Bob Blanz andother Nevada Bell personnel.
Among the stopson the senator 's itinerary was Boone Creek. Ranch, the northernmost poin t on the val ley' s radio system. There, a remark by owner DoUyAnsol obehere seemed to sum up the feelings of BETRS subsc ribers.
"Whe n the phone rings," said Dolly,"We get excited!" •
Reviewing Centtrs updated $1.9 million digital computerized repair center is repairbureau emptoyee Eva Cardenas (seated, center] and Arlen Taggart . manager l orCenteJ's installation and repair service center [standing, center],
TElECOMMUNICATIONS
Centel Brings
Digital Repair
Service to
Southern Nevada
Ofall the technological cdcances in
recent ,eaTS, the impact on releccmme-
nications is profound. From faxts to
fibeToptics and a host of other come-
nitncts, the ttkphont industry is been-
ing busints s producti\ritJ. But what
about down time when troubk in\oadts
tekphont lint s?Tha t's when the "t ime
is monti' adagt becomes Tt a lit) for the
busintss communit).
Centel is calling on the latest digitaltechn ology to repair customer lines inSouthern Nevada. Last month, the company introduced an updated computerized repair servicesystem to repl ace oneincorporated 10 years ago. The new $1.9million digital system is tw ice as fast,more accurate and bas grea ter capacitythanits predecessor.
"What we've done with thenew systemis eliminate some time-consuming stepsrequired to test ourcustomers' lines," saidGo rdon Th ornton, Centel operations vicepresident. "The system's speed and accu racy are amazing."
Ten years ago Ce nte l planners had to
dedicate an entire room to accommodaterepair sys tem equipment. Now, the newcom puter can fit into a good-sized closet.The system can:
• Proce ss double the amount oftroublereports in half the time.
• Handle 750,000 cus tomer lines andcan be expanded to 1.5 million. Centel isserving more than 450,000 lines now .
• Provide a more complete cu stomerline-trouble history over a longer period.
• Be expande d to 250 operator terminals .Operators also can access othercompany data bases to bette r serve custome rs.
• Exp and to test new business telephone services such as Integrated Systems Digital Network and SignallingSystem 7, which will intermingle vo icewith data overone pairoftelephone wires.
• Provide mor e sophisticated testingover longer distances with greater accuracy than be fore. For example, the newsys tem will speed the testing of lines inBoulder City and Laughlin. The syste melectron ically "looks" down a telephoneline and conducts 36 tests to determine
where the problem may be so thai Centelrepair personn el know where to go tomake corrections.
" It's a remarkable system that will shavea lot of time from trouble reports weinvestigate," said Arlen Taggart, manager of the insta llation and repa ir servi cecenter. " It should improve our responsetime in term s of pinpointing the problem." Th e repair cente r field s abo ut 4 10calls on an average busine ss day fromcustomers report ing lineproblems.lnfact,the company averages about two troublereports per 100 custom er lines servedeach month , one of the lowest in comparab le service areas nati onwide .
Another new technology is being usedto help repair pe rsonnel sign off jobs andreceive new ones. Centel repairdispatehersare using voice mail boxes to communicatethe infonnation . 'This reduces our time toreac t to customer needs," said Taggart.
Repair crews respond to line problems24 hours a day, 365 days a year, Taggartsaid. The repair cente r, like the city itserves, is ope n aro und the clock. •
/4J# • NOVEMSER 1990 2 1
THE MEASURE OFSUCCESSBEGINSONWEST SAHARA AT
MARBEYABUSINESSPARK
I
UTil iTIES
WKBOW
rate s, the amount of savings varies. Gen erall y, however, the incremental cost ofthe gas-cooling equipment can be recovered through energy cost savings withinthree years . Moreover, the displacementof peakelectricity usagecould help reducethe need for Nevada Power to constructnew po wer plan ts.
Anothe r application, called cogeneration. can also produce energy cos t savingsfor commercial andindu strial customers.A marriage of good engineering and anabundant economical fuel. cogenerationsys tems typ ically areused to produce onsite electricity with a natural gas-fueledengine , while capturing the waste heatfrom the engine and using it for heatingand water heating. Good candidates forcogeneration include hotels. motels, hos pital s, colleges and universities, nursinghome s, fast-food outlets,office bui ldings,computer centers , apartment compl exes ,shopping centers and factories - virtu ally any large facility whe re de mand forelectricity is steady and where generatorscan beused .
By harne ssing what nonnally would bewas te heat from the cooling and exhaustsystems of the generator engine . cogeneration systems can save customers tensof-thousands of dollars annu ally in energy costs , depending on vari ations inweathe rand energy prices, system designsand applicat ions. In add ition , some systems can bedesigned to increase reliability, because they can continue to operatewhen util ity power outages occur. Rel iabi lity is an important factor for businesses tha t operate compute rs and othe rsens itive electronic equipment. And because electricity and air-conditioning areproduced at a central on-sit e location, noadditional mechanical equipment needbeinstalled, free ing up space for other purposes incl uding new tenants.
Gas cooling andcoge neration are twoinnovative ways large commercial andindustrial customers can cut ene rgy billsand improve operating efficiency. •
Money with Natural
Gas Fueled Systems
Large Commercial
Customers Save
•
E ne,gy costs typicallyaccount for 10 to 20 per
cent or moreofacommer-cial building ' s operating
budget, Thisisespeciallytruein Southern Nevada wheremany commercial buildin goccupan ts incur h igher
electri city costs during thesummer months due to aircon
ditioning demands. One way to lowerthese costs is with natural gas cooling.Natural gas -the fuel most often associated with efficient. economical heatingsystems - can provide cooling as well .
Stable natural gas prices, coupled withrising costs of peakelectricity and recentadvances in gas-cooling techn ologies,have mad e gas cooling an increasin glyviab le option for commercial businessoperators . In most Sou thern Nevadabuildings, air conditioning systems arethe largest users of peak electric power.By replacing an electric motor-drivencooling system with a natural gas-fueledengine-driven system, commercial customers can cut their operating costs substan tially. An engine-driven chiller cansave a customer thou sands of dollars peryear in ene rgy costs, primarily throughlower fue l costs and reduced electri citydemand charges. Depending uponthetypeof system installed, operating hours,loadfactors, the type of building involved andvariations in electricity and natural gas
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1990 Political QuestionnaireOUf September edition featured a survey that quizzed primary candidates on business-related issues. The
overwhelming response we received as a result ofthatissue has prompted us to provide a recap for ourreaders to
take to the polls November 6. In order to be concise, the names of those candidates who did not answer OUf
questionnaire have been gleaned from the survey.
SJOURNAL
9. Have youever managed a business?to. Have you everdeclaredbankruptcy?11 , Would you support a ' three-way' bill allowing workers
compensation insurance to be sold throughprivate insurancecarriers?
12. Do you support Nevada s right-to-work law?13. Do yousupportemployeebenefits suchashealthinsurance
andchildcare being mandated by government?14. Do you support growth of newbusiness and industry in
Nevada?15. Would you support a broad-based business tax?
BUS INESS
1. Party Affiliation: Republican2. Democrat3. Other4. Do you support the teachers corporate tax initiative?S. Would you vote for a property tax increase if proceeds
were tobe used to help solve trafficproblems?6. Would youvote for asales taxIncrease if proceeds were to
be used to help solve traffic problems?7. Wouldyou support measures toensure thatallcountiesgel
their FairShare of slate tax revenues?8. Have you ever owned a business?
N E V A D A
SUl'vty Ann."en:
DA- did not, or wu unable to Rll I.. el'
Y-yel
N-no
Party Affiliation:
D- Democrat
R- Republican
/'i' - Non-h rtlu.n
u.s. CONG RESS
DU/rid 1
Bob Dlcklnson, Us Vegas • N Y N Y Y N Y y N y N
District 2Barbara P.VUCWlovld!, Reno • DA DA Y Y N Y Y N Y DAGOVERNOR
JIm Giltlawl , Zeph eo" • N DA DA Y Y Y N Y Y N Y N
UIUTENANT GOVERNOR
Sue Wagner, Reno • N DA DA Y N N N Y DA Y DAAtTORNEY G£NUAL
Frankie Sue Del Papa, Reno D DA DA Y Y N DA DA DA DABryan Nelson, Carson CIty • N N Y Y N Y N Y N
SECRETARYOFSTATE
CherylLan,Carson CIty • DA DA N Y N Y DA DA DA
AW • NOVfM6ER 1m "
SUl"'ty An",'t "'
D.'"- did nol, or ,.-u unllbk 10 M 51ltt
Y-rn
S- no
Party Affill llilon:
D - [kmottal
R - Republican
/li P - Son-Pu t isan
r.n'ADA STATE Tn:AS(;iER
Ray Sllalftr, Las Vegas 0 OS OS Y Y N OS OS Y OSr.n'ADASTATE SL'iU EV"m hnwU ~It'DWrld
La.rtDCe L Jacobstn. Mindtll • N N N Y Y N Y N Y y
John \'tl1l am;d, ytringlOll 0 N N N Y Y N Y Os y y
SWIt'~ District Ijohn f . Pilgrim, BouldtrCry 0 N N S Y Y N N N Y S
Hal Smith, Htnderson • S Y Y Y Y N Y N Y Y
$1Il1t' SentIit' 0I.sJrld 2
Leonard V. /linin, Sparks 0 S OS OS OS Y S OS OS Y OST ade T. Sit hell! Jr., /li. Las Vt gas R N Y Y Y S S Y N Y y
SlIlte Sellate Dislrli;t JBob Coffin, Las Vegas 0 N OS OS Y Y S Y N Y OSTbeodort \'tne1.lano, Las Vegas • N N S Y Y N S N N N
SWte S¥1uzte Dislrld j
BiD 0 Donnell, Las Vegas • N S S Y Y S Y S Y S
SUIte Snwte lNlrld 6Milt Malone, W ngas • N S S Y S S Y N y N
SUIte Snwte D/.strid 7Nicholas J. HOftl, Las vegas 0 N N S Y Y N Y S Y N
Crq: )til~gh., Las Vegas • N S S Y r N Y N Y Sr.n'ADA STATE ASSE~LY
.us-bIy Dislrld I
Mmht .. Q. Callister, Las Vegas 0 S Y OS Y y N Y N Y OSCraigMoore, Las Vegas • N y y y y N y N y N
Assembl District 2Scott scherer, Las Vegas R S S N Y S S Y Y N Y OS
.usembly Dis/rict JOJuc.k Horne, W \'egas R S S Y Y Y S Y Y N Y N
.us-bIy D/.strid 4lind Goffiin&, W \'egas • OS OS Y Y S Y y N Y S
BiD I bsam,Las \'egas 0 Y y r y S Y Y Y Y Y
_DWrld'Bill CI'fIOl'Y, Las \'egas • S S S Y Y S Y N Y Y
\1nce Trtus, Las ngas 0 s y y r y S OS N Y OS..we...bIy District 6
Joannt DustIn, W \'egas • Y y N y S S Y Y N Y N
Assembly DIs/rid 8
Jack R. Ran kin, Las Vegas R N S Y y t N r y N y N
&sembi Dis/rli;' 9Steve Tark, w Vegas R N S S Y Y N Y Y N Y S
.As.wmbly DWrld 10Merle Ikrman, W \'tgas • N S Y Y Y N N Y S Y Y
" ~.~I 990
Survey Ann.'ers:
DA- did not, or llIU unable to llfISln r
Y- yet
N- no
Part)' Affiliation:
D- [)emoaal
It - ltepubUcllfI
to.l' - Non·Parllsan
AJsembly Di.slrlcl / /Doug Bache, Las Vegas D Y DA N Y N N N N DA DA Y DA'I'aliace (Vi'ally)Smith, Las Vegas • N N Y Y Y Y N Y Y N Y N
AssemblyDi.slrlct /2Charles L (Chuck) Anderson, LV. • Y DA Y N DA N Y Y N Y DAJohn L Norton, Las Vegas D Y N Y Y Y N Y Y N Y Y
AJsemblyDi.slrlct /3Midlael Pernh , Las Vegas D N Y Y Y Y Y N N Y N Y N
As.Jembly Di.stricl 14Va[ Garner, Las Vegas D N Y Y Y Y Y N N Y N Y Y
Ken Koester, Las Vegas • N DA DA Y Y Y Y Y Y N Y Y
As.Jembly DIstrict /5Chmes Wakefield. Las Vegas D Y N Y Y Y Y N Y Y N Y Y
Bob 'l'ong.Las Vegas • N DA DA Y Y Y N Y Y N Y N
Asu'mblyDis/rid /6
Jme Ham, Las Vegas • N Y Y Y N N N Y Y N Y N
~b.?' Distrld /8
George L Harris, Las \"tgas N N N Y Y Y N Y N Y N
r l1!i= ~ PetrU, Las Vegas N N Y Y Y Y N N Y Y Y Y
~ Di.strid /9htrm (pu ) UtUe, S<>rtb. Las Vegas N DA DA Y N N N DA N Y N
Frat L 0 SdILSonb Las Vegas N N N Y Y Y N Y N Y y
~ Di.strid 20....-m. B.Hardy, Las Vegas • N N N Y N y N y y N Y N
.fad. l tg;an,Las Vegas D N y t y y y N y y N y y
..w-hIy Dis/rid 2/
1- Coy Pettyjohn, Henderson • N N Y y y y N y y N Y Y
A.uembly Di.slrlct 22
Phll Stolll, Henderson • N Y Y Y N Y N Y Y N Y N
A.ssembly IXslrlct 23JimGibbons, Reno • N Y N Y Y Y N Y Y N Y Y
Assembly /JI.strlct 27BruceR, Bogaert, Reno • N N N Y Y Y N N Y N Y N
Ken llaller, Reno D N N N N Y Y N N N DA Y "Asu'mbly/JI.strict 28
Don Gustavson, Reno • N N N Y Y N Y Y N Y DAJoseph L Johnson, Reno D N N N Y Y N Y Y DA Y N
Asu'mbly Dis/rict 30
Frederick Martin Clayton, Sparks • N N Y Y N Y Y Y N Y N
Assembly Dis/rict 3/
Hugh Lantz, Sparks • N N N N Y N y y N Y DAAssembly Di.slrid 33
John C.Carpenter, Elko • DA N Y Y N Y N y DAAssembly /Jislrlcl 34
loin • NOVEMaEIl 1990 "
SU" ,? M""US:
DA- did not, 01" " 'U unable 10 anp'n'
y .. ,"
S .. IlO
Party AtfUI. tion:
D " DmIon-at
J. .. R~ublkan
SP .. Non·P.rdsan
John Marvcl, Bailie Mountaln N N r r N r r.u-sbl.r DisJrlcI35aue !ll«;!nneU, Fallon I N N N r r r • r r • r r
DWrld J6GallD. Armstrong, Panaca • r r r r • N N r r rGaylyn S us. Ha1i1horne • D' D' r r N r r N r N
~1Xslrld37
GaryA. Sbcerin. CarsooCity x D' D' r r r N N r N r D'DWrldj8
joseph E. DlnI,Jr.. YCl1ngton • r r r r r N r r • r rTbomu (TOll!) W. Robinson, Fallon N • r r r r • r r • r •Assembl 001,*'41
Leonard Rool, Las Vegas I N N N t N r N N r r r rAsumbl Dislrid /1John Bayley, Lu Vegu N N N r r r • r t • r rRenee Diamond, Las Vegu N r r r r r • N D' D' r rD1S'l1.l(.T AlTOi....n1t4Ubol! Col/Illy
Tom '&"fI&h1, Reno D' N N r • • • N r • r ra.AJ.l COlOOY OOW)(lSSlOS
DWrld I
Gary LogIJI, Las '''tg:u • r N r r r • D\ r • r •'&"ASHOE COUNTY COMMISSION
DWrld 2Dorthy Pbarls, Reno • N N • r r • r • • r •DWrld JRIchard Don~1ll, Ileno N N N t r r N r • r r •COUNTY TJlUSURER
OM. Col/II
Marl Aston, OYenon D' D' r r r r • t r r rJr.u6ooJ Col/II
GaryS. SIIn I~ D r N r r N N • r r r r •OOUNTY ASSESSOR
O4"'CoII~
DonPinson, Lu Vegu I N N r t r t r r N N r N
COUNTY RECORDER
04rt Collllly
Qift' )Iurdod., L:u Vegu I r t t t r r • t t • r •OOUNTY a.EU04" CDIIIIJ)'
Lorena Bowmlll, Las Vegu D D' r D' r N N • t D' D' rSIIEIlIFF
04,. CoIIllty
}o6tph Ippolito, L:u ,"'cps r • • t • • N r • r r •" AIM • ~119'lO
Surv~y Answ~rs:
DA- did not, or was unabl~ to an511..~r
Y· yu
S-no
Party Affiliation:
D- Democrat
R• RepubUcan
NP - Non·Part lun
Washoe County
Hneent G. Swinney, Reno , N Y Y Y Y N Y N Y Y
CO~STABLE, ClARK COtTh'TY
Boulder Township
Dan Draken, Boulder City D N N N Y Y Y N N Y N
1m V. as ToUJnJh IpDon Charlebolx,w Vegas D N N Y Y N Y Y N Y Y
Ulugh/ln ToumshipEd Crocker, laughlin D N Y Y Y Y N N Y N Y Y
M04fN' VIJlIey TouonshlpHarry B. Perklns, Ovenon D Y N N Y N N N Y N Y N
COSSTABLE, WASHOE OOUl\T'(
Rmo Toum hlpDaryl Pellzzart, Reno , N Y Y N N D.' Y y DRP\,"BUCADM~1m.~TOR, ~r. Cnty
jutd E. Shaler, Las Vegas D DR DR Y Y N DR DR Y DRBO,UD OF EDUCATION
a.ri Cou"" Sub DlsJrld BSh.lna t wee- )larek, Las \'egas DR N r N N Y N Y Y
S- SbIl-orth. W "tgas DR DR Y Y N Y DR Y DRCri e-.ryo Jab l>Istrla E
Itr.:IiiIII! Loa&. w"·tgas , N Y Y Y Y N Y y N Y y
......", e-."Sub District A
"'" K. Cn:w:Ita, Reno , N N Y Y Y N Y Y N y NSCBOOL DlSTIICT n USTEE
Gri <MInty Sdoo/ Dtslrkt F
Inn St'Vl-bum, w Vegas D N Y Y Y Y N Y N y y
aori Q)u"ty School Dlslrkt G
jan Biggerstaff, Las Vegas DR DR DR Y N DR DR DR DRJudy '1·ill, Las Vegas D N N Y N DR N Y DRJ'4$hOf COUllty SchoolDlstrlct B
Kobert 'W'hittemore, Sparks , Y Y Y N Y N Y Y
W4$hOf Co unty SchoolDtstrlct CLezlle Porter, Sparks , N N Y Y N Y N Y NlJ'asnlM' COUllty School Dtslrld F
Daniel Nlghungale, ReM NP N N Y Y N Y N DR NlTh'lVERSOY or NEVADAREGENT
Sub Dtslrlct B
CU(llyn ."1. Sparks,Las Vegas , DR DR Y N DR DR DR DRNeDO. Wilt, Las Vegas D DR DR Y N y DR y DRSub Dtslrlct C
Madison crwes II, Las Vegas , N N Y Y N Y N Y DRSub Dtstrfd E
joseph M, roley, Las Vegas D N y y y y N N Y Y DR--NOVEMeE~ 1990 "
Nevada's educators have
a lesson to shore with us:
Quesfion6, the (orporote
TaxInitiofive, just doesn't
make the grade. That's why
theyhave withdrawn their
support from imposinga
corporofe lox inNevada.
VI EW POI NT
Even educatorsgive the CorporateTax Initiativefailing marks
by Lyle E. Brennan
The corporate tax ballot questiongets an "P ' for what it FAILSto dofor Nevadans. Whi le it may raiseneeded do llars for education, it promises higher prices at the pump. highe rprices for foodandhigher prices for allgoods and serv ices. Why? Because itreally is a "pass thro ugh" tax that youandI will have to pay.
Just as important. because of itspotential dram atic impact on our future- and our- children's futurc - theCorporate Tax Question also promisesto curtai l economic growth in the S ilverStatc. lfit is passed into law, manymajo r companies will pass ove r Nevadaand take their business elsewhere;corporations are sure to steer clear of astale tha t would boas t one of the highestcorporate tax rate s in the nation.
The issue will appear on theNovembe r 6 general elect ion ballotas Que stion 6. If approved by voters, itwould impose a corporate income tax.rate of eight percent on "for profit"corporations if their net profits fall inthe range of $20.000 to SI 19,999 .99 .rums earning S120.000 or more in netprofits would be compelled to pay at arate of 10 percent In addition. all ofthese corporations. regardless ofwhether they post a profit or a loss.would be required to pay an annual" franchise fee" of $500.
You don ' t need a d iploma to understand what a rotten-apple-on-theteecber 's-desk the initiati ve would befor Nevada's economic future . Corporations already pay plenty of taxes .Corporations are financially burdened
with property taxes. personal prope rtytaxe s, use taxe s. sales taxes, StateIndustrial Insurance System taxes,unemployment taxe s, fuel taxe s andfede ral Lues. This, of course , is aboveand beyond their business license andregistration fees. Play this film againstthe backdrop of an impending nationalrece ssion. budget deficits. war in theMiddl e East. trade deficits. savings andloan fail ures and othe r indicators of aslowing economy and the lure of freeenterprise for may business investorsand entrep reneurs becomes rathe rtarni shed. Add a corporate tax to the potand yo u negate Nevada's slim advantage in a shark-infe sted sea of aggre ssive state governments .
Ifour educators agree tha t theCorporate Tax Question gels a failinggrade for the threat it pose s to oureconomic future . the re must be something to their warnings. Stil l notconvinced that the initiative is bad newsfor Nevada ? Co nsider this: California 'smaximum rate for a corporate incometax is 9.3 percent; Idaho ' s is eigh tpercent; Ore gon's is 6 .6 percent (withno sales tax ); Utah 's is five percent.It doesn't take a rocket scientist to seethat corporations would invariablychoose to invest in those western stalesthat tempt them with lower taxes andtherefore . a more favorable economicclimate. The long-term effect wouldmost likely equate to a serious lycrippled sta tewide economy as corporate firms look pas t Nevada's borders toconduct their business. Sadly. the mostironic resu lt of this exodus of businesswould be the severely depressed jobmarket facing all those students we paidso dearly to educate.
A couple of viable alternatives to helpraise money for ed ucation have beenproposed by business and communityleaders, and deserve serious consideration. But whichever tax plan is fmall yapproved. it wou ld need to providestability andpred ictability to Nevada'svolatil e economy. Question 6. theCorporate Tax Initiative. does neither• •
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Sinre 1982, small business
owners in Nevada have hod
arcess tosmall-issueindustrial
develapmenl bonds 10spur
expansionand growth. Ihave
introdured legislation to pre
serve this valuable business
assel which issrheduled 10
expire 01 the end 01 this lisral
year. The federal government
musl nal allow surh on
effective inrenlive 10 business
expansion and diversifirotion to
be laken Iram our small-
business rammunity.
SPEAKI NG FOR NE VA DA
IndustrialDevelopmentBonds andSmall BusinessTax Credits
by U.s.Senator RichardH.Bryan
When serving as governor of Nevada,I found the Industri al DevelopmentBond (IDB) Program to bean effectivetool not only for economic development . but also for economic div ersification. In the last eig ht years , the NevadaDepartment of Co mmerce has provided37 small businesses, not including eightprojects which are in the works , withaccess to affordable capital to fill theirneeds. These bonds total over $ 100million. not inclu d ing $26 milli onwh ich has yet to gain final app roval thisyear . We created roughly 3.000 jobs forNevada's citizens.
These bonds provide a critical sourceof fmancing necessary for smalle rmanufacturers to es tabli sh new plants ormodernize existing facili ties. Industrialdevelopment bonds are similar to
commerc ial bank: loans, but are given atax exempt sta tus if certain condi tionsare met. From the bank' s perspective,purchasing a bond is attractive. becausethe interest from the bond is tax free ,unl ike inte rest from a loan . Smallbu sine sses consequently are able tooffer lower interest rates on their bondsand thus are able to finance moreprojects than would bepossible if theypurchased an ordinary highe r interestloan. Continuing this bond programwould cost only S10 million in fiscal1991 . but would leverage almost 53billion in private investment eac h year.A 3ClO-to-one cos t-benefi t ratio is fartoo effective to sac rifice.
The lower interest ra tes madepossible by this type of financing havehe lped 10 offset the risks involved in abusiness expansion. the cost involved inthe relocat ion of a plant site or theadd itional costs that can be associatedwith locating a new facility at a distancefrom primary markets . By providingaccess to capital at competitive marketrates. the bonds have helped createthousands of jobs in every pan ofthe nation . In many case s, companiescould not have gone forward with aprojec t without the avail ability of thetax -ex empt financing. More over ,IDB s have enabled many smallerbusinesses to with stand heavily subsi d ized foreign competit ion.
As a result of changes in the 19&4and 1986 tax bills, small-issue industrialbonds are now targeted to sma llermanufacture rs and are subjec t to atight statewide volume cap. elim inat ing potentia l fo r abuse. The resultis a strong and responsible programthat jud iciously allocates scarcefede ral resources while satisfying theneed for a proven tool for job crea tionand retention.
It is time to let thi s program work.
Recently.} co-sponsored the SmallBusiness Disabilitie s Tax Credit Actwhich will provide a S5.000 tax cred it10 small businesse s to help them comply
J.JR • NCMMtofR l990 31
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with the requirements of the Americans with Disabilities Act (ADA).I believe this legislation will providebusinesses with financial relie f as theymake accommodations for those whohave disabili ties.
The Small Business Disabilities TaxCredi t Act provides a refundable tax
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-.. • •essi'4e 10 disabled employeesolD!~ 1be credit is refundable,110=- businesses with low profitsill be able to benefit fully . The credit
:zi.abo be carried forward. so thatbaac ssa that make large renovationsaD spread the tax credit be nefits overK'\'U3.l years. In addition. the tax creditis DOt limited to only those businessescovered by the ADA; even very smallbusinesses. whic h voluntaril y makeaccommodations for disabled employees and custome rs. can claim the credit.
There is broad support for thislegislation. In the Hou se of Representatives. key members have endorse d litetax credit and promised to work for itspassage. In add ition, there is support forthis measure among mem bers of theSenate Finance Committee . Government and bus iness face commonenemies - the budg et de ficit and aweakening economy . There is no reasonthe private and publi c sector shoul d notwork together against these problems.
We cannot destroy lite jobs we arecreating for the disabled by overburde ning small businesses. If we do.we help no one. The Small BusinessDisabilities Tax Credit Act will ensurethat this does not happen. It will helpboth disabled workers and custome rs.as well as small businesses. ..
Businesses that make large renova
tions can spread the tax credn benefin
se er~ yean.
Strategic financial planning is
particularlyimportant fora
parent whois single - whether
due toaspouse'sdeath, divorce,
or ather reason - to ensure
by Richord Chulid
Financial Planning lor theSingle Parent
thefamily's financialstability.
Thesingle parent often faces
thetask ofmeeting the immedi
ate needs ofthe family alone
as well as meetingits require
ments for the future.
J4 NJ# . NC:>VE.W.E1 1990
Money Management
Budgeting typically becomes very important for a single pare nt. often becauseof a change in lifestyle. Th e amou nt ofincome available from all sources mustfirst be dete rmined. Income from socialsecurity, a survivor' s pension, if any. thesurviving spouse' s salary or sell-employment income. and investment incomeall are important sources.
Social security benefits are paid to thesurviving spousewho has children underage 16. and addition al benefi ts are paiddirectly to children age 16 and 17. Benefits are also available to the children andthe survi ving custod ial pare nt in d ivorcesituations at the dea th of a parent cove redby social sec urity.
Investment income includes not onlycurrently inve stable assets bUI any disui butions from life insurance proceedsand benefit plans. A reasonable rate ofreturn, determined by the type of investments selected, shou ld be used in determining the level of income. Expensesshould be reviewed and minimized to theextent possible.
After determining the levels of incomeand expenses , it may at first appear thaiincome is more than suffic ient to suppo rtthe expe nses. However, expenses aresubject to infla tionary increases and somesources of income do not last inde fini tely.
Therefore, any cash flow surplus shouldbe invested to generate addi tional assetsfor future use.
Uf. Insuranc.
A single parent may not often considerthe need for life insurance . However,depe nding on the level of assets available,life insurance can be extremely importantfor a surviv ing spouse who is the solesupport of the children, or for a parentwho is paying alimony or child support.
In ei ther event. cost is usually an important consideration. Annual renewableterm insurance,which is very inexpe nsiveespec ially at you nger ages, is generallythe appropria le type ofcoverage in thesesituations.Th e beneficiary of a life insurance policy in eithercase should be a trust.as disc ussed late r und er estate planning.
Inv.stm.nts
The selection of inve stments will bedete rmined by the needs of the singleparent and fam ily. Fixed inco me investments are appropriate if current income isnece ssary. Ge nerally, fixed inco me maturi ties should be selected using twomethods: matched matu ritie s (coincidingwith the need for the principal) and a bondladder (staggered maturit ies). To the extent assets are n 't required to generate cur-
rent income, it may be advisable to investa portion of the portfolio in equities in aneffort 10generate a larger return.
Ifdistributions from qualified plans arereceived, a rollove r to an IRA should beconsidered. It is advisab le 10 invest IRAassets in taxable fixed-income investments and allocate assets outside the IRAto equity investments to the extent equityinvestments are otherwise appropriate.
h la'. Planning
Estate documents are extremely important in a single parent situation. Aguardian should be named to care for thechildren, and a trust should be establishedto provide for the management of thechildre n's assets and the eventual distri bution ofthe assets. The guardian and thetrustee can be the same person, although it
isgenerally inadvisable. It isoften preferable to have a corporate trustee (or cotrustee) such as the trust department of a
The guardian and the trustee can be the
same person, although if is generally
inadvisable. It is often preferable fa
have aearparale frustee (or ea-truslee)
such as the trust department of abank.
local bank. In any event, the trustee andthe guardian should be compatible, inorder to provide for the best interests ofthechildren. It may even beappropriate to
provide the guardian with the ability toreplace the corporate trustee with anothercorporate trustee.
A numberofelections maybe availableto a surviving spouse when a trust of adeceased spouse is already in place. Forexample, it may be possible to disclaimproperty in favor of a trust for the children,withdraw assets or select alternativebeneficiaries. Such elections should beviewed as planning opportunities. Priorto making any election, the survivingspouse should clearly understand eachelection and carefully evaluate its effect.
These are some thoughts to consider.Your tax advisorand attorney can providemore detailed infonnation and should beconsulted before any action is taken. •
Richard Chulick is Q tax partner with th~
firm Deloine &: Touche.
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689-4242
Itused to be that Small
Business Administration
loonswere considered the
by AIAlvarez
SBA Loans Now ConsideredRespectable, Profitable
loonsof lost resort, sought
bybusiness individuals whose
credit needs weregreat,
but whose credit records
were less than perfect ..•
36 /lNJ . NOVEMIlEI I990
Thanks to improved guidelines andprocedures, the Small Business Admini stration has worked hard over the last fewyears to change the beleaguered image ofthe SBA loan. In fact, with the tighteningof belts of most financial institu tions andthe recen t S&L fiasco, SBA loans, inadd ition to being prudent investments forparticipating financial institutions,are nowconsidered one of the most attractive andreadi ly attainable loans around .
Losses on SBA loans at 3.1 percentcompare very respectably to the nationalbank average loss on loansof 1.3 percent .Considering that the SBA loses only 3.1cents on every dollar loaned, that leavesalmost 97cen ts togenerate taxes and jobs.
Last year, the SBA guaranteed loans inexcess of $2.4 billion across the country.Estimates for fiscal year 1990 indicatethat the Nevada Small Business Administration expects more than 225 businessesto recei ve almost $40 milli on, accordingto Patrick Allison , district director of theLas Vegas district SBA office .
As one of the reg ion ' s top ten SBAlenders for 1989, Valley Bank of Nevadaaccounted for more than 60percent of thestate' s SBA produ ction at almost $25million. The region consists of Colorado,California, Arizona , Hawaii and Nevada.Once fiscal 1990 figures are tallied, it isexpected that Valle y Bank will break intothe country's top ten SBA lenders . These
figures strongly indicate a renewed andhealthy regard for the SBA loan .
Why is an SBA loan such a good dealfor the businessman? Forstarters,the fundscan be used for many different businessneeds. Financing construction. refundingofdebt,and providing working capitalareall legitimate uses for SBA funds. as ispurchasing realestate, machinery, equipmentand inventory.
Finns elig ible for SBA loans must befor-profit and must not be engaged inlending, speculation.or opinion-moldingactivities.Thus, the majorityofbusinessescan qualify to apply.
Small Business Administration loansalso have very attractive repayment termsand rates, espec ially compared to otherconventional forms of financing. Repayment plans on working capital are sevento 10 years, 10 to 15 years for eq uipmentand 25 years on real estate.
Interest rates, which are set by the financial institu tion, must not exceed primeplus 2.75 percent, thus the borrower isassured a competitive rate .
Equally attractive is the ease of obtain ing an SBA loan, particularly when onedeals with a financ ial institution whichhas Preferred Lender Provider (PLP) status, such as Valley Bank of Nevada.
PLP status is awarded to those financialinstitutions with high SBA loan volumesand proven track records for making
"smart" loans . Such institutions haveearn ed the right to bypass approval fromthe local SB A district o ffice and can makethe approval dec ision in-hou se. Th us. response time can be as little as 72 hours.
Expanded SBA loan limits have alsoresulted in a nation al average SBA loanamount of5182.000. although most SBAloans are typically less than S I million .These generous limits can really providesmall businesses with needed capital fortheir gro....-th andincreasedprofitab ility.
SBA loans are noc: only attractive toconsumers but represent a growing sourceof business andrevenue for financial institutions. Because SBA loans are guaranteed up to 90 percent o f the loan amountby the federal government, the risk to theinstitution is greatly diminished. That' sDOC. 10 say tha t banks and othe r lendingoffices relax their standards. Rather, itmerely take s the "sting" ou t of any pote ntiJ.I loss.. Furthermo re, it's safe to say thata fir.mciaJ institution with PLP statu s" oo"t jeopardize its rating by grant ing
.. hich do not have a high probabil~ of being repaid in a time ly manner.
In the state ofNevada , particularly withiu record-breaking econom ic grow th,SBA loan s will continue to provide attractive and viable financing opt ions. According 10 a study by M/PF Research ,Inc... the job marke t in Las Vegas grew by12. percent during first quarter of 1990.making it thefastest job-growth market inthe nation. Another study by AmericanBusiness lnfonnation ranks Las Vegasthird in the country in the numbe r of newbusinesses started during 1989. And theU.S. Commerce Department pred icts thatduring the 19905. Nevada will rank firstamo ng the 50 states in population growthand employment opportunities .
As the Nevada economy continues togrow, so will1he SBA loan and its newfoun d respect. •
Al Alvarez is senior vice president, manager 01 Volley Bank 01 Nevada's commercial lending centers.
Ifyour smallbusinesscan afford:
real phones,areal copier,and arealcomputer...
...you can affordreal insurance.
••
BlueCrossi ;, < Blue Shield:.; 01 N,vldl
• •tt ssimp~) ' a matter cf trust.
When you look for a copieror phone system for your small business. chancesare you shop the same places bigbusinesses do. Thesedays. more and moresmall businesses are taking the same approach to shopping forinsurance.One by one they're finding that the same quality insurance largecorporationsknowand trust is the best value for their small business as well. With over20 years ofprovenperformance. Blue Crossand BlueShieldof Nevada isinsurance you can trust at a price you can afford. For information contactyour broker or BlueCrossand Blue Shieldof Nevada at 382-3302. in lasVegas. In Reno call 829-4046. outside the Reno metro area call 1-800-6483250. Becausereal businesses deservereal insurance.
business indicators & ana')!sis
Ihe Iraq i inv as ion of Kuwait has set in motion the use ofan embargo as an economic force in the gee-politicalstruggle. An embargo on exported fuel and importedgoods in Iraq has gene rated price impacts here andelsew here . Of course, we know that reduced oil ship
ments have infl ated local gasoline prices. But prices for other oilbased products have also jumped. An d other products less dependent on oil will follow as the embargo continues. Nevertheless, thefull impacts of the Middle East reduc tion in oil supp lies on theperfonnance of the lola] level of economic activity remains uncertain. Uncertainty persists because consumption of existing stockscan continue for some time. thus dampening adverse effects. Butfurther price increases. and perhaps even some supp ly shortfall.might occur as the United States enters the winter heating season.One must nevertheless conclude that the current oil situation mayonly accelera te the economic slowdown now underway in the U.S.
The problem of stagflation - the simultaneous occurrence ofhigher inflation and unemployment-looms as a possible futuredevelopment. Should further o il shortages appear in the future , theinevitabl e upward spiral in oil prices will occur. The loss of Iraqiand Ku waiti oil has reduced world supplies by about IOpercent. Tobe sure increased production from Saudi Ara bia, Nigeria andVenezuela has redu ced som e o f this shortfall. No netheless, it is areasonab le guess that erode prices will continue to drift upward inthe winter months. As a resul t, one may reasonab ly expect inflationto advance. Since a sizeable fraction of our paym ents for oil goabroad, we can expect furthe r erosion in our already ane micbalance-of-payments accounts . Fac ed with fmancing difficulties, adecline in economic growth will only further wear away emp loyme nt opportunities. The 199 1-1993 window appears destined foraneconomic recession.
Business and economic conditions in Nevada remain favorable inthe face of these unfoldin g world events. Since serv ice industriesusually lag the economic path of manufacturing industries, onemight expect that Nevada 's curr ent indicators are stro ng in compari son with other more manu facturing-orien ted states.
One can hardly beany thing othe r than impressed with Nevada'seconomy. Gaming revenue as of June , 1990 remains abo ve las tyear 's level by a significant 15.45 percent . Of course , the increasedcompetitio n underw ay in Las Vegas as a result of the sizeableexpan sion in hotel and cas ino ca pac ity may not leave all propertiessharing equ ally in the gam ing boom. But with all maj or sectors ofthe state 's gam ing economy showing double digi t growth ratesabove last year's levels, the sta te 's primary export business contin ues to fuel a strong economy. Neverth el ess, the wei ght of decliningoverall economic activity eventually affects the se rv ice industry .Th us, cu rre nt Nevada ind ica tors should not be vie wed as evidencethat we will escape the rising economic storm. Rather, we must waitfor a bener reading of Ne vada's futu re economic conditions in themonths ahead.
R.K~ilhSchwtr, UNLV C~nltrforBusiness &- EconomicResearch.
31 """ . NO'v'£MB[' 1990
NEVADA TAXABLE SALES._--..eee
~.-.~'.- ~
,,-
.. _. - - - - -NEVADA GROSS~~ING REVENUE
'-,,-~
1 '100
~,,-~~.- ~
.-
....uoo
..... ... '00' ... _. ....
AIR PASSENOERS~.......
'-•/
• ~--'- J1, ./"""
•
• 7 ........, •••I
•- - -' - - -0 ____e_
.mUNEMPLOYMENT
UNITS uast PlIIOD PUVIOUS PfI IOO lUI AGO OlNG TI AGO
N"""",, July 1990 t.eQ1OnCl11y od j. 4.7 5.1 5.2 .9 .6 2"4Los Vegal July 1990 t.eQlOnally od j. 4.6 5.1 5.2 ·1 \ .5.4"4Re rla July 1990 t.eQsorla lly od j. 4.6 4.' 5.2 .11.5 .4%
U.S. July 1990 t.eQsorlally adj . 5.4 5.1 5.2 3 .85 %
RETAIL ACTIVITYNevoda Taxa ble Solei
Clark COUrllyWalhoe COUrlly
U.S. Retoil Soles
JUrle 1990JUrle 1990JUrle 1990July 1990
$ thousorld$ thousarld$ thousorldS millio<'l
1,3 19,0607.49,652253 ,4 30149 ,506
1,248,19373 3,2 27230,329149,374
1, 16 1,0386.4 .4,90.423 2,4451.45,389
13 .61 %16.2.4%9.0 3%2.83 %
GROSS GAMING REVENUE
Nevadadork COUrllyWashoe COUrlty
June 1990JUrle 1990June 1990
S IhouSOMS IhouSOM$ IhouSOM
444 ,23 1322,7 17
72 ,5 12
.446,13732 6 ,595
73,457
38.4,766273,600
63 ,397
15 .45%17.9 5%1.4.38%
CONSTRUCTION ACTIVITYLos Vegas Area
New Resio.nc:el 2r>d qtr 1990 II permits 3,265 3, 165 3,4 5.4 ·5 .47%New Commercial Permits 2f1d qtr 1990 /I permitl 202 234 21 2 -4.72 %
Refla AreoNew Relidel'lee. 4th qlf 1989 It permitl 283 541 35. ·2 1. 17%New Commercia l Permits 4 th qlf 1989 II permit. 3' 88 42 ·7 . 14%
U.S.Housing Storti July 1990 thousond 1,1 48 1,179 1,424 ·19.38 %T0101Construdiorl June 19 90 Sbillion 447 .5 447 .6 431 .6 3 .68 %
HOUSING SALES
Los Vegas AreaAvera ge Sale. Price III 2M qlT 1990 S 127 ,459 126 ,666 12 1,337 5 .05%AvefOge Cost/Square Foot 2M qtr 1990 S per sq. h. 77.29 78 .92 69.4 1 11.35%Average Mortgag e Rate III 2M qtr 1990 .. 9 .75 9 .57 10 .20 ....t ..41"4
Wa.hoe CourltyAVOfag e Solei Price III 4th qlT 1989 S 135 ,901 15 4,20 1 136,92 8 .0 .75%Avetoge COil/Square Foot 4th qlT 1989 $ per sq. It. 75 .46 77.49 75 .4 4 0 .03"4Average Mortgage Rate III 4th qlr 1989 .. 9 .80 ' .60 10 .50 -6.67"4
U.S. Home Soles July 1990 thO\lsond 548 561 741 ·26.05%
TRANSPORTATION
Totol Pa.senSell III
.MeCarran Airporl, LVCarlf\OrI Airport, Reno
State Taxable Gasoline Sole.
POPULATION ESTIMATES
N~do
Clark COUrltyWo.hoe County
NAnONAlECONOMY
2nd qtr 19902r>d qtr 1990June 1990
July 1989JvIy 1989July 1989
ponengerspo nengersIhousorld ga l.
4,6 39 ,S58736,785
61 ,945
1, 198,400733,18025 1, 130
4,.45 3,398847,8 14
50 ,353
.4,159 ,9597 11,68 0
54,.489
1,124,650681, .440244,490
11.54%3 .53 "4
13.68 %
6.56"47 .5 9%2.72 "4
Consumer Price lr>dex !"l "~I990 1982-34. 100 130 .5 130 .0 12.4 .5 4.82"4Monf¥Y Supply - MI July 1990 $ billio<'l 909.2 809.4 779 . \ 3.86"4Prime Rate 9/1 /90 .. 10.0 10.0 10 .5 ....t .76%Three-Marlth U.S. T-8ill 9 / 1/90 .. 7.49 7.44 7.72 ·2.98%Grou Notional Product 2nd qlJ 1990 $ billion 5,45 1.9 5,375 .4 5 , 174 .0 5 .37".4
NOTES: 111 houses, condos, townhouses; 121 30 yr. FHA; 13JenplclI'oed/doplor-l po' lengers; 14JaUurbon con",m.,.,SOURCES ; Nevodo Dept. ofToxgtjon; Nevodo Employment SoaIrilyDept.; UNlV, Cenler lOr Bu.ineu OM Eeonomie Research;UNR, Buf1lOU 01Busir.essond Eeonornic Researeh; US Dept. ofCom..-ce; US federal Resel"o'8.COMPILED av;UNLV, een..,.. lOr Businessand Eeonornie Researeh
JWI • NOVEMIE I I990 39
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