Bulletin Daily Paper 02/07/10

Page 1

GAME GUIDE

What to watch for, and who has the edge? • IN SPORTS

MORE THAN

240

$

IN COUPONS INSIDE

WEATHER TODAY

SUNDAY

Mostly cloudy High 48, Low 27 Page B8

• February 7, 2010 $1.50

Serving Central Oregon since 1903 www.bendbulletin.com

Coming Monday: Green, Etc.

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GREEN LIVING, TECHNOLOGY & SCIENC E IN OREGON

GREEN, ETC. THE BULLETIN • MONDAY, FEBRUARY

First up:

8, 2010 www.bendbulletin.com/greenetc

A new weekly section exploring green living, technology and science in Central Oregon and beyond.

Bend Research ‘a key player’ in state biotech

GOING GREEN

to go green without going broke

I

A career shift for our ‘third senator’

C

Looking for Pets? Pet coverage has moved to Tuesdays in the Community Life section. General pet coverage will appear on the first Tuesday of each month, with Horse Country on the third Tuesday.

t doesn’t take switching to solar panels

or buying a hybrid car to live a more

Through its 10-year partnership with Pfizer, it has become a specialist in pharmaceuticals By Andrew Moore

The Bulletin

By Kate Ramsayer • The Bulletin i

ll

How to go green without going broke

Central Oregon is home to a number of biotechnology infor-

insect-control products. Bend Research’s work eventually led to an exclusive 10-year partnership ith th h

Without water

Hundreds of Central Oregonians who can’t pay their bills have their water shut off. For people like Lynette Nicks, who’s recovering from cancer, that’s especially dangerous.

The Oregonian file photo

Josh Kardon, Sen. Ron Wyden’s longtime chief of staff who has been credited by colleagues with leading the Oregon Democrat’s efforts on natural resources and county timber payments, is moving full time into private consulting.

By Patrick Cliff The Bulletin

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By Keith Chu The Bulletin

WASHINGTON — As chief of staff to U.S. Sen. Ron Wyden, Josh Kardon has been called the most influential unelected official in Oregon. Some dubbed him Oregon’s “third senator” — as both a compliment and a criticism. And last week, Kardon left Wyden’s office to join the private sector, where he’ll serve as a consultant to Wyden’s re-election campaign, be an adviser to a Portland consulting firm and have a chance to make dramatically more money than he did as a Senate staffer. Kardon declined to answer most questions about his work with Wyden or his career change. Kardon said he hasn’t decided whether he’ll return to Wyden’s office when the campaign is over. “This is the single best way for me to help the best senator I’ve ever known win re-election,” Kardon said. “It will also allow me to get involved in some other projects and explore other ways I can make a difference.” Political analysts, lobbyists and former staffers who worked with Kardon said he’s been an uncommonly effective chief of staff, who forged a tight bond with his boss over the past 18 years. He also earned a reputation for playing hardball, and earned the most money of any staffer for Oregon members of Congress for working on political campaigns over the past four years. See Kardon / A6

INDEX Movies

C3

Business

G1-6

Obituaries

B6

Classified

E1-8

Oregon

B3

Abby

C2

Community C1-8

Perspective F1-6

Crossword C7, E2

Sports

D1-8

Editorial

F2-3

Stocks

G4-5

Local

B1-8

TV listings

C2

Weather

B8

Milestones

C6

Pete Erickson / The Bulletin

Lynette Nicks, who has struggled with breast cancer for two years, has not been able to pay her bills lately. On Feb. 15, if she doesn’t pay her water bill, the city of Redmond plans to cut off her service. Nicks and her son Chad, 12, may move temporarily to her parents’ home near Prineville. “It’s easy to see how people get behind and give up,” she says.

Fixing the ‘unsustainable’ gas tax Do we move to a mileage tax instead? Questions of urgency, fairness and privacy abound By Ashley Halsey III The Washington Post

Within a few years, a driver who pulls up to the gas pump may pay two bills with a single swipe of the credit card: one for the gas and the other for each mile driven since the last fill-up. That may be the result of what

By Gretchen Morgenson and Louise Story New York Times News Service

The Bulletin An Independent Newspaper

SUNDAY

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many transportation experts see as an inevitable revolution in the way Americans pay for their highways. The flow of the gas tax pipeline that has poured cash into one of the world’s premier highway systems has slowed as some people drive less and oth-

ers choose more fuel-efficient vehicles. Maintaining that aging network and tackling the rushhour congestion afflicting most cities will require billions of dollars. As gas tax revenues dwindle, federal and state lawmakers have an option created by innovative new technology: Charge

the nation’s 201 million drivers for every mile they travel. That prospect was raised last year by a congressional commission, a Brookings Institution report and a highly regarded nonpartisan transportation research group. See Gas tax / A7

Proposed plastic ban gains attention of tribes By Nick Budnick The Bulletin

SALEM — Tribal leaders in Warm Springs are jumping into what currently is one of the most contentious battles in Salem: whether to ban the chemical BPA from plastic used for sippy cups, What baby food jars and the lining of is BPA? infant formula Bisphenol A is a chemical containers. Sen. Jackie commonly used Dingfelder, a in the production Portland Demo- of plastics for crat, is pushing many food to make Oregon and beverage one of a few containers. states, including Questions about Connecticut and its safety, though Minnesota, to disputed, have follow Canada caught the in banning the attention of the chemical, also FDA and state known as bi- lawmakers. A bill sphenol A. The in the Legislature move is based seeks to make on an array of Oregon one of scientific studies the few states that plastic and that bans BPA. chemical industry scientists dispute, but which has sparked concern among Food and Drug Administration officials. The Warm Springs leadership has long championed clean water legislation, so its stance on BPA, which is found in waterways and fish, is not a surprise. But it’s likely to become even more active on these issues thanks to the influence of the reservation’s new health and human services manager, Caroline Cruz. Cruz, 59, had worked for the reservation for a decade starting in 1977, and rejoined the reservation government last year to head its community health programs. She’s spent 30 years in the field of prevention, mainly focused on drug and alcohol abuse, and most recently served as tribal liaison for the state Department of Human Services. In May, a position came open, and “I got recruited to come back home,” she said. Now, she oversees 120 employees in the tribe’s community health programs. See BPA / A5

TOP NEWS INSIDE TEA PARTY: Convention opens as leaders seek ways to forge a lasting movement, Page A2

The quiet conflict that helped push AIG to the edge

We use recycled newsprint

Vol. 107, No. 38, 52 pages, 7 sections

REDMOND — ynette Nicks has not worked for the past two years, instead fighting the breast cancer that has consumed much of her energy and resources. She’s used up $26,000 in savings to pay her bills. Now, the money is gone, and one bill she can’t pay is one of the most critical: her water bill. The city will cut her water service on Feb. 15 if she can’t come up with the $140 that is overdue. She says she doesn’t have the money and is resigned to losing water. Nicks, 39, will be one of about 100 Redmond residents and several hundred Central Oregonians who lose their water service this month. Local water utilities have been shutting off dozens of water accounts each month as people struggle to pay bills. City officials say there is no law requiring people to have water, so some, like Nicks, appear to be staying in homes without running water, despite the obvious hygiene issues. “I’m stubborn,” Nicks said. “I will stay here.” See Water / A7

WARM SPRINGS

The Associated Press photos

Goldman Sachs’ demands for billions of dollars from the American International Group bled the insurer of cash, which the government later provided.

Billions of dollars were at stake when 21 executives of Goldman Sachs and the American International Group convened a conference call on Jan. 28, 2008, to try to resolve a rancorous dispute that had been escalating for months. AIG had long insured complex mortgage securities owned by Goldman and other firms against

possible defaults. With the housing crisis deepening, AIG, once the world’s biggest insurer, had already paid Goldman $2 billion to cover losses the bank said it might suffer. AIG executives wanted some of its money back, insisting that Goldman — like a homeowner overestimating the damages in a storm to get a bigger insurance payment — had inflated the potential losses. Goldman countered

that it was owed even more, while also resisting consulting with third parties to help estimate a value for the securities. After more than an hour of debate, the two sides on the call signed off with nothing settled, according to internal AIG documents and a tape recording reviewed by The New York Times. Behind-the-scenes disputes over huge sums are common in banking, but the standoff between AIG

and Goldman would become one of the most momentous in Wall Street history. Well before the federal government bailed out AIG in September 2008, Goldman’s demands for billions of dollars from AIG helped put the insurer in a precarious financial position by bleeding it of muchneeded cash. That ultimately provoked the government to step in. See Collapse / A4


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