Some local government workers cut out of airline fare deal

Thursday, Dec. 14, 2000 | 10:05 a.m.

CARSON CITY -- The state Board of Examiners Wednesday approved a two-year contract with Southwest Airlines to haul state workers between Las Vegas and Reno at a reduced rate of $78 for a round trip, but local governments will no longer be able to piggyback on the sweetheart deal.

The regular price for a round-trip ticket between Nevada's two major cities is $192. Gov. Kenny Guinn, who chairs the examiners board, called the discounted rate "a good deal for the state," as even with the discount the flights over the life of the contract are expected to cost taxpayers more than $5 million.

The $78 has been the discounted rate for five years. The state agreed to pay $88 when it negotiates the contract that will begin in 2002.

There were about 30,000 round trips made this year under the present contract. Greg Smith of the state Purchasing Division said Southwest has no competition for this type of arrangement. American Airlines, for example, offers only one flight a day.

Southwest, however, was insistent that employees of local governments not be included in the discounted state fare as they have been in the past. Smith said the airline felt "there was a tremendous amount of fraud" by local government workers who use the reduced rate to take pleasure trips, rather than for business.

Smith said Southwest was "very assertive" that local governments be jettisoned off the contract. He estimated that local government employees make up about 20 percent of the 30,000 round-trip tickets.

Although no documentation was presented to prove fraud, the examiners board agreed to drop local governments from the contract.

Attorney General Frankie Sue Del Papa said, "We're lucky to have the contract."

One complaint about Southwest, Smith said, is that the flights are full. An individual must book two to three weeks ahead of time. And Del Papa said the state will have to hold more telephone or teleconferences rather than having people travel.

The board also approved a $6 million contract with Citicorp Diners Club for state workers' use when traveling. There have been complaints that a number of state workers failed to pay their bills to Diners Club.

Smith said employees who have these cards will be asked to voluntarily sign an agreement that past due bills to Diners Club could be deducted from their state pay. He estimated that only 50-70 out of the 3,000 card holders have caused a problem.

Del Papa said the state could not act as a guarantor for Diners Club. But Smith said this would be a voluntary agreement. And Guinn said Diners Club should cancel the cards of those behind in their bills.

The board also agreed to pay $150,000 to George Benda, a state worker who was accidentally shot during an incident at the state prison in Carson City in April 1999.

Benda was working for the state Department of Motor Vehicles and Public Safety at the license plate plant at the State Prison. An incident occurred and Benda said he tried to get four inmates who were outside the plant back inside. But he was shot with rubber BB's.

The board also voted for an out-of-court settlement for $12,000 to Mark Meyer, who was fired by UNLV in November 1996 from his job as a principal engineer. The reason was because he reportedly had falsified his employment application. But Meyer filed suit in federal court, saying his termination was in retaliation for him exercising his rights under the Americans with Disabilities Act.