Reno Gazette-Journal from Reno, Nevada • Page 30

Business News 2E MONDAY, APRIL 7, 2003 Mixed news received from the airport last week 0ook back Economic Indicators Among the Indicators that reflect the state of Nevada's economic health, few are more crucial than unemployment rates and how much Nevadans and tourists spend inside and out of the state's casinos. The state's jobless rates, especially in the Reno-Sparks area, typically have been lower than the nation as a whole, reflecting Nevada's nation-leading population growth. To fuel the state budget, Nevada relies on gaming and sales taxes to generate three-fourths of all revenue, reflecting a heavy reliance on those levies. Unemployment Rates across Nevada went up in January, blamed primarily on post-holiday cuts and technical changes in reporting methods. State officials downplayed the jump from December, saying the more accurate comparison is with January a year ago.

To that end, January's jobless rates remained well below where they were in 2002 when the state struggled in a post-911 downturn. Those rates were affected primarily by thousands of jobs lost in the hotel-casino sector in the Las Vegas area because of plummeting air passenger numbers. January's numbers were up compared with two years ago, when the economy as a whole was strong. nnnir By Bill O'Drlscoll RENO GAZETTE-JOURNAL It was a yo-yo week at RenoTahoe International Airport. The downside: The passenger count for February fell 2 percent from a year earlier.

The upside: Frontier Airlines gave notice it intends to reinstate a second Reno-Denver flight starting June 15. The new flight will continue to Reagan National Airport in Washington, D.C., a key point on the East Coast. Krys Bart, the Reno airport's executive director, said Frontier will give the new flight three months to succeed or be discontinued. "If we grow it, there will be more behind it," she said, adding Frontier must sell 70 percent of the new flight's seats for it to work. February's passenger report did little toward that goal.

Passenger traffic totaled 354,881 compared with 361,980 in February 2002, which was 15 percent lower than February 2001. The numbers went south in February on another tourism front. Visitors to Washoe County filled 5.8 percent fewer rooms from a year earlier, pulling down taxable revenues nearly 10 percent. But for trie fiscal year to date, revenues are down 3.6 percent announced last week that it intends to and gaming industry lobbyist, will now negotiate an option to buy back a piece of the casino and will apply for a license to operate as a gaming executive. On Thursday: The Nevada Labor Commission ordered Robert DeMaio, president of failed online service provider Dotl web to pay $429,479 in back wages and penalties to less than other regions around the country, according to the Reno-Sparks Convention Visitors Authority.

Wrapping up other key developments from last week: On Monday: Reno-based Meridian Gold Inc. reported its mining reserves more than doubled as of Dec. 31, largely on last year's acquisition of Bran-cote Holdings PLC. Also: PDS Gaming owner of Rocky's Sports Pub Grill in downtown Reno, reported a loss of 16 cents per share in the fourth quarter. The company cited higher costs as well as "unfavorable conditions" in the Reno gaming market.

On Tuesday: Investment banker UBS Warburg downgraded its rating on International Game Technology from "buy" to "neutral." It was the second Wall Street downgrading in two weeks for IGT. On Wednesday: Sierra Pacific Resources executives told analysts the utility is on schedule to meet electricity demands during hot weather this summer. CEO Walt Higgins also said the company, which flirted with bankruptcy last year, is focused on improving its finances and plan from $3.95 to $4.95, starting March 1. New customers who signed up for the plan after Jan. 1 are already paying the higher fee, according to the Web site PhoneBillAlert.com.

"I am angry about it," said customer Paul Class, 71, of Lacey, N.J. Verizon Communications added a $3 monthly minimum charge for its Verizon Timeless plan in December. MCI is adding a "Carrier Cost Recovery Charge" amounting to 0.5 percent of a customer's state-to-state and international long-distance bill starting on Feb. 1. The company says the new fee helps the company recoup its costs associated with the fund for telecommunications relay service for the hearing impaired, federal regulatory fees and other charges.

"The telecom industry took their cue from the banking industry," said consumer advocate Rich Sayers, founder of PhoneBillAlert.com. Telephone companies are adding monthly fees just as banks did, he said. "There are a lot of ways they can get you here and get you there if you don't watch these fees." MCI spokeswoman Lauren Kallens said the price hikes af- Phone wars end, consumers now pay higher rates WEB mKW.trac.org, the "i Telecommunications I Research and Action Center I www.plionebillalert.com, NEW CONNECTION: Frontier Airlines beginning June 15. keeping the lights on and power flowing. Also: The Nevada Gaming Control Board approved the transfer of the unrestricted gaming license on the Old Reno Casino from buyer Harvey Whittemore to Bill Paganetti, a co-owner of the Peppermill Hotel-Casino in south Reno.

Whittemore, a Reno lawyer tOOO, (00010, 1 CIO. tooiooto. ooio not ot feet plans that are no longer being marketed by the company. spokesman Gary Mor-genstern said his company also has adjusted some rates for calling cards, international calls and calls requiring operator assistance. So if you're not satisfied with your long-distance plan, shop around.

"Overall, the most important thing anyone needs to know about long-distance is that these days it is not a 'set it and forget it' proposition," said eas of the businesses, the number allowed by the county and Henderson. The proposal is a departure from an original recommendation from supper club owners to permit 10 slots to such facilities with 5,000 or more square feet. City officials suggested five slots after hearing objections from tavern owners, who are restricted to 15. Tavern owners complained that 10 slots would make the restaurants more like taverns, but without the limitations. By law, taverns have to be 1,500 feet away from schools, churches and other taverns.

Supper clubs need only be 400 feet from schools and church ON THE By David P. Willis ASBURY PARK (N.J.) PRESS The long-distance telephone price wars are over. Until recently, long-distance companies were locked in a fierce battle to gain market share, slashing rates to attract customers. Now companies like MCI WorldCom and struggling with declines in long-distance revenue, are trying to right themselves by raising rates for the first time in years. "We have seen the long-distance industry eviscerated over the past two decades because of pricing wars," said Jeff Kagan, an Atlanta-based telecommunications consultant.

"They just went too far." Rate hikes became noticeable when MCI boosted rates for night and evening calls on some of its plans from 5 cents to 9 cents per minute as of Dec. 1. More are on the way. Per minute rates are not the only increases consumers will face. Companies are hiking some fees and creating some new ones.

is increasing its monthly fee for existing customers of its One Rate 7 Cents VegasSlot FromIE "Racinos and California Indian casinos will be very good markets for these products." Sega entered into the deal in part because it had grown weary of having to apply for new gaming licenses each time it wanted to do business in a state, Yoseloff said. "They really didn't want to have to deal with licensure in the North American jurisdictions, he said. Shuffle Master which also sells card-shuffling machines, gaming software and other gaming equipment has about 1,500 proprietary table games on casino floors in North America. The company charges its casino clients a Washoa I Clark I CartonDouglas Statewide LyonStorey 9 8--- 7 5 6-1 5 I 4 3 2 I 1 Jan. 2003 Jan.

2002 Jan. 2001 Casino revenues On paper, the numbers looked robust but the statewide 10.3 percent nse in the January gaming 'win' compared with a weak year-earlier month that was held down in the wake of the Sept 11 terrorist attacks. Also last year, ffie cmcial Super Bowl weekend, one of the biggest gaming periods of the year, was pushed into February. Even so, doubleligit gains were common this January, including a 15.6 percent rise in Washoe County and 13.8 percent more on the Las Vegas Strip, where most of the state 's gaming revenue generates. Washo CanonDouglas Clark Statawldt $900 Jan.

2003 Jan. 2002 Jan. 2001 Taxable sales As with unemployment and the gaming taxable sates in January compared with a tepid January 2002 when rrmchants saw a drop-off in business in the post 911 economic slump. Nevertheless, the statewide 5.9 percent jump in taxable sales was weB above the inflation rate, signaling real growth. The same held for Washoe County, with a 5.1 percent rise over January 2002, and Douglas County, where sales leaped by 18.4 percent largely on the strength of the fast-growing retail area abutting Carson City.

Prospects for coming months appeared uncertain, as Gov Kenny Guim voiced fears that the war in Iraq crimp any growth this spring. Watkot Clark CarsofiDeaglas StattwMt LyonStony 3 II ll I Jan. 2003 Jan. 2002 Jan. 2001 COMING NEXT MONDAY: A look at Washoe County room occupancy, RenoTahoe Airport passenger counts and cargo counts.

I 800 700 600 I I .100 80 -r 60 40 -4 5U 5J 5JL $600 500 300 200 inn .511 sJLI a I Reno Gazette-Journal file add a second Reno to Denver flight, 67 employees. The biggest back-wage penalty in state history came after 75 former employees filed claims saying Maio fired them just before Christmas and their paychecks bounced. If the fines are not paid by April 24, the commission said, the case will be turned over to the Attorney General's Office. tance plan. "You don't wantto be stuck with paying (for) more than you are getting," said Kate Dean, spokeswoman for the Telecommunications Research and Action Center, a consumer group in Washington D.C.

TRAC publishes a Tele-Tips chart that compares different plans and calling patterns. For instance, a plan offering a bucking of minutes for a fixed price might be good for someone who wants to know how much he or she will spend each month, Dean said. If you make a moderate to high number of calls, say more 'than 100 minutes a month, a flat-rate plan might be appropriate. What if you only make a few long-distance calls a month? Dump the long-distance company and try out inexpensive prepaid calling cards tnat are available at warehouse clubs, such as Costco and Sam's Club, Dean suggested. "I use them now and I love them," she said.

David P. Willis is a business writer for the Asbury Park (N.J.) Press, a sister Gannett newspaper. restaurants cardi's offer was announced. The company's shares were trading at a year-low $3.65 a share March 13. Its high was $8.25 last May.

Among the investors watching the increases is East Coast casino mogul Donald Trump, who owns 10 percent of Riviera Holdings, which he bought at $6.46 a share. Trump last year announced that he and Frontier Hotel owner Phil Ruffin would build a $300 million, 60-story condo complex called Trump Tower Las Vegas near the Strip. Jeff Burbank is a Las Vegas free-lance business writer. His articles on southern Nevada business-related issues appear every Monday. view on energy residences and businesses having the power they need, when they need it, and where they need it.

We at Sierra Pacific are committed to that goal providing stability in price and supply that ail of our customers expect and deserve. We welcome and are appreciative of the support and understanding we nave received from this community. We believe true recovery depends on achieving our goals together. Industry Vista is a weekly column that provides officials from different industry sectors an opportunity to share their views on issues affecting their northern Nevada companies. Today's column is by Jeff Ceccarelli, president of Sierra Pacific Power Co.

machines may be seen soon in Nevada Phone Bill Alert, which tracks rates for landlines only. www.10-10phonerates.com, compares rates of dial-around and 10-10 phone companies www.lowermybllls.com, compares rates on everything from auto insurance to long distance www.smartprice.com, helps consumers find the right long-distance plan for them David Heim, deputy editor of Consumer Reports magazine. People make sure their life insurance coverage is up-to-date, Heim said. They should do the same with long-distance plans. "You cannot assume that a deal that was good in January is going to be good in July," he said.

"If a better deal comes along, you don't necessarily get it, you nave to ask for it." It's important to take into account your calling patterns when looking for a long-dis es. "The idea is to have a compromise, and that supper clubs can't act like taverns," Vincent said. Riviera Holdings Shares in Riviera Holdings, owner of the Riviera Hotel on the Las Vegas Strip, continued to rise by the end of last week on news that Italian land tycoon Fabrizio Boccardi has offered $246 million for the company, or $8.50 a share. The price per share in Riviera Holdings, on the American Stock Exchange, rose 14.3 percent on Friday to $6.30 per share, after increasing by almost 40 percent to $5.51 a share Thursday, the day Boc- Sierra Pacific, along with our state and the Western economy, only has begun the long road to recovery. Paramount in that recovery is a fundamental ingredient stability.

Stability that is afforded when a utility is financially viable and able to maintain a reliable and affordable supply of energy for its customers. Stability that comes from a well-planned mix of electricity generated here in our state, and a backbone of transmission lines capable of importing power from neighboring states when necessary. Public policymakers and private business can indeed work together in strengthening Nevada's energy position. We certainly can agree on the importance of our AheadEconomic report VistaCeccarelli shares his monthly royalty fee to operate them. Supper club slots Unlike the surrounding jurisdiction Clark County and nearby Henderson, the city of Las Vegas prohibits supper clubs restaurants with 125 seats or more to operate slot machines.

"Right now, our ordinance does not allow an Applebee's or an Olive Garden to have slots," said Mark Vincent, the city's director of finance and business services. But that could change April 16, when the council will hear a proposal from supper club owners and city staff to permit up to five slots in the lounge ar ta, a University of Nevada, Reno intern with the Nevada Small Business Development Center, will speak to the Hispanic Chamber of Commerce on how to start or grow a small business. It starts at 7:30 a.m. at La Fuente Mexican restaurant, 790 Baring Sparks. Details: (775) 786-4100.

Wednesday: International Monetary Fund and World Bank release a report on world economic outlook. Thursday: The U.S. Commerce Department reports on international trade in February; the U.S. Labor Department reports on weekly jobless claims; Freddie Mac reports on mortgage rates; the nation's largest retailers report sales figures for March. Friday: Commerce reports on retail sales for March; Labor reports on Producer Price Index for March.

FromIE room occupancy rates fell 5.8 percent from a year earlier. "The tourism industry is struggling and certainly Reno is one of the weaker places," said Reno gaming analyst Ken Adams. Tourism will be the focus Wednesday when the Nevada Commission on Tourism kicks off "Rural Roundup," a three-day annual conference at the Horizon Casino Resort on Lake Tahoe's south shore. The theme will be "Nevada's outback" and how to attract visitors to the Silver State's more remote and rugged communities. Details: (775) 687-4322.

Other events of note this coming week: Today: The Federal Reserve reports on consumer credit for February. Tuesday: Rodrigo Zilla-Cor- From 1 We believe our communities require the same. Maintaining a reliable supply of electricity and natural gas to serve our growing communities is a vital component of northern Nevada's economy. A financially healthy utility is critical to do just that. As we add thousands of new residents and hundreds of new jobs each year to northern Nevada, power needs for new and existing business expansion, and residential housing continues to escalate.

Economic diversity and growth are vital to economic health. And it is clear that without the necessary energy supplies, our community's prosperity cannot continue. Souts NmaD Gamng Central Bo Oanrtnrt of 'baton and Dmmm Emotoyimrt. fonng a i. fanvMReno Gnnt-Journal.