01/12/1979

UCCSN Board of Regents' Meeting Minutes
January 12-13, 1979








1-12-1979

Pages 1-19

BOARD OF REGENTS

UNIVERSITY OF NEVADA SYSTEM

January 12, 1979



The Board of Regents met on the above date in the Edward L. Pine

Auditorium of the Travis Student Union, University of Nevada,

Reno.



Members present: Mr. James L. Buchanan, II

Mr. Robert A. Cashell

Mrs. Lilly Fong

Mr. Chris Karamanos

Mrs. Molly F. Knudtsen

Louis E. Lombardi, M. D.

Miss Brenda D. Mason

Mr. John R. Mc Bride

Mr. John Tom Ross



Others present: Chancellor Donald H. Baepler

President William Berg

President Joseph Crowley

President Jack Davis

President Brock Dixon

President Paul Kreider

President Lloyd Smith

General Counsel Larry Lessly

Secretary Bonnie Smotony



Also present were Senate Chairmen Page (UNR); Mattson (UNLV);

Blauert (WNCC/N); Jacobsen (DRI); Kendall (Unit); and Student

Association representatives Neuweiler (ASUN); Schenk (WNCC/S);

White (CSUN); and Schefcik (USUNS).



The meeting was called to order by Chairman Buchanan at 9:45 A.M.

with the Honorable Peter Breen, District Judge, swearing in newly

elected Regents Cashell and Mc Bride, and re-elected Regents Fong

and Karamanos.



1. Election of Officers



In accordance with the provision of the Bylaws that "the

Chairman and Vice Chairman shall be elected from among the

membership of the Board at the organization meeting of the

Board in January of the odd-numbered years and shall serve

two-year terms", Chairman Buchanan called for nominations

for Chairman.



Dr. Lombardi nominated Mrs. Molly Knudtsen. Nomination was

seconded by Mrs. Fong.



Mr. Mc Bride nominated Mr. Robert Cashell. Nomination was

seconded by Mr. Karamanos.



Nominations were then closed and Mr. Cashell was elected

Chairman by the following votes:



Mr. Buchanan, Mr. Cashell, Mr. Karamanos, Mr. Mc Bride

Mr. Ross - for Mr. Cashell



Mrs. Fong, Mrs. Knudtsen, Dr. Lombardi - for Mrs.

Knudtsen



Miss Mason - abstain



Mr. Cashell assumed the Chair and called for nominations for

Vice Chairman.



Mr. Karamanos nominated Mr. John Tom Ross. Nomination was

seconded by Mr. Buchanan.



Dr. Lombardi nominated Mrs. Fong. Nomination was seconded

by Mrs. Knudtsen.



Nominations were then closed and Mr. Ross was elected Vice

Chairman by the following votes:



Mr. Buchanan, Mr. Cashell, Mr. Karamanos, Mr. Mc Bride,

Mr. Ross - for Mr. Ross



Mrs. Fong, Mrs. Knudtsen, Dr. Lombardi - for Mrs. Fong



Miss Mason - abstain



In accordance with the provision of the Bylaws that "A Sec-

retary of the Board, who shall also be designated as Clerk

of the Board, shall be selected by the Board from without

its members from among a panel of persons nominated by the

Chancellor of the University, shall serve at the will of

the Board and shall be compensated by the University in an

amount determined by the Board", Chancellor Baepler recom-

mended that Mrs. Bonnie Smotony be designated as Secretary

of the Board for the ensuing two-year term.



Dr. Lombardi moved approval. Motion seconded by Mr.

Karamanos, carried unanimously by roll call vote.



Chancellor Baepler presented plaques to Mr. James Buchanan and

Mrs. Molly Knudtsen in appreciation for their four years as

Chairman and Vice Chairman, respectively.



2. Appointment of Investment Advisory Committee



Chairman Cashell appointed the following to the Investment

Advisory Committee for the ensuing two-year period:



Mr. Karamanos, Chairman

Mr. Mc Bride, Vice Chairman

Mrs. Knudtsen

Dr. Lombardi



3. Adoption of Consent Agenda



Chancellor Baepler recommended approval of the following

items contained in the Consent Agenda as identified as Ref.

A (filed with permanent minutes):



1. Approval of minutes of regular meeting of December 1,

and special meeting of December 18, 1978, as amended.



2. Acceptance of gifts and grants.



3. Appointment to School of Medical Sciences Advisory

Board of Dr. Louis E. Lombardi as replacement for

Dr. Fred M. Anderson.



4. Request for leave of absence without pay for Dr. Salim

Akhtar, Mackay School of Mines, for two years beginning

July 1, 1979.



5. Postretirement appointment of Dr. William Carlson, Pro-

fessor of Education, UNLV, for 1979-80 academic year.



6. Promotion to Emeritus Status of Charles A. Jacobi, Pro-

fessor of Radiologic Technology, upon his retirement

from UNLV at the end of the current academic year.



7. Renaming of Department of Geology-Geography, UNR, to

Department of Geological Sciences, effective

immediately.



8. Formal designation of Morrill Hall as the official name

of that building.



9. Authorization for assessment of a $2 fee for issuance

by UNR of a duplicate fee receipt.



10. Approval of the 1979 Summer Session Budget for UNLV.



11. Augmentation of the Chancellor's Housing Expense

Allowance to bring the account back to its original

level of $5,000.



12. Authorization to write off $2,568.63 in emergency loans

at NNCC which are considered uncollectible.



13. Authorization to expend up to $40,000 from the Union

Reserve Fund to accomplish physical modifications to

UNLV Student Union food facility to include a "deli".



14. Increase from $100 to $200 per month in the automobile

allowance provided for General Counsel Lessly, effec-

tive January 1, 1979.



President Crowley requested that Item 9 be withdrawn from

the Consent Agenda.



In response to a question from Miss Mason concerning the

proposed increase in automobile allowance for Mr. Lessly,

Chancellor Baepler explained that Mr. Lessly uses his

personal car extensively on University business, and is

expected to be traveling between Reno and Carson City during

the Legislative Session. The allowance is provided as total

compensation for such use and no additional mileage claims

will be made by Mr. Lessly for University-related travel in

the Reno-Carson City areas.



Miss Mason also inquired about the change in title proposed

for Mr. Lessly. Chancellor Baepler reported that he is

considering a change in title to have the General Counsel of

the University named Vice Chancellor for signature purposes

only on grants and contracts, without any change in function

or in services performed by Counsel, and without any inter-

nal reorganization. He stated that such a change in title is

not intended to establish this as a #2 position in the

University, and that no one else will be reporting to the

Chancellor through this Vice Chancellor. He also noted that

such a change in title would not typically be brought to the

Board of Regents for approval.



In discussion of the gifts and grants included with the

Consent Agenda, President Crowley asked for the inclusion of

an offer of a gift to UNR from Mr. Claude Howard of property

in Las Vegas which would be used by the Medical School as a

clinic. Dr. Crowley noted that the property is the San

Francisco Medical Arts building at 637 E. Sahara and is

valued at $600,000. A stipulation of the offer is that it

would be used by the Medical School, when transferred to the

University in about two years, as a clinic.



Mr. Karamanos moved approval of the Consent Agenda as

submitted, with the deletion of Item 9, and with the addi-

tion to the gift list of the proposed gift from Mr. Claude

Howard. Motion seconded by Mr. Mc Bride, carried without

dissent.



4. Resolutions of Appreciation



Chancellor Baepler recommended adoption of the following

resolutions in appreciation of the service of former Regents

Fred M. Anderson, M. D. and John Buchanan.



Resolution #79-1



WHEREAS, FRED M. ANDERSON, M. D., has served with distinc-

tion as a Regent of the University of Nevada continuously

from January, 1957 through December, 1978; and



WHEREAS, during his tenure as Regent he has freely and un-

selfishly devoted time and attention to this public office,

seeking always the advancement of the University; and



WHEREAS, the appropriate and proper growth of all Divisions

of the University of Nevada throughout the State has always

been an abiding concern to him; and



WHEREAS, as Chairman of the Board from 1965 through 1968,

he provided effective and constructive leadership, especial-

ly during the formative years of the Medical School; and



WHEREAS, his interest in the area of medical education has

been a determining factor in the founding and development of

the Medical School, thereby offering increased opportunities

for careers in medicine to young men and women in Nevada;

and



WHEREAS, Dr. Anderson has now chosen to retire from the

Board of Regents after twenty-two years in that office;



NOW, THEREFORE, BE IT RESOLVED, that the Board of Regents

of the University of Nevada, on behalf of its individual

members, the Administration, the faculties, staff and stu-

dents, hereby expresses to Dr. Fred M. Anderson its most

sincere appreciation for his dedicated and effective

service to the University of Nevada; and



BE IT FURTHER RESOLVED that the Regents sincerely hope that

his interest in and support of the University will continue

and that the University community will continue to benefit

from his wise counsel.



Given at Reno this 12th day of January, 1979.



Resolution #79-2



WHEREAS, JOHN BUCHANAN served as a member of the Board of

Regents of the University of Nevada from January, 1975

through December, 1978; and



WHEREAS, during this time he has freely devoted time and

attention to this public office; and



WHEREAS, Mr. Buchanan also served as Chairman of the Board's

Investment Advisory Committee for 1977 and 1978, giving con-

scientiously of his advice and counsel in this leadership

role;



NOW, THEREFORE, BE IT RESOLVED that the Board of Regents ex-

presses to John Buchanan its sincere appreciation for the

professional and effective manner in which he has discharged

his responsibilities as a Regent of the University of

Nevada; and



BE IT FURTHER RESOLVED that the Regents individually and

collectively extend to him their best wishes in his new

assignment as Director of the Office of Economic

Development for the State of Nevada.



Given this 12th day of January, 1979, at Reno.



Mr. Ross moved adoption of the foregoing resolutions by

acclamation. Motion seconded by Mr. Karamanos, carried

without dissent.



5. Proposal for Establishment of Distinguished University

Service Award, UNLV



President Dixon noted that for several years the UNLV Admin-

istration has solicited nominations from the Commencement

Committee for commencement honors, specifically for indi-

viduals to receive honorary degrees or designation as

Distinguished Nevadans. However, this Committee, composed

largely of administrative types, has never succeeded in

getting as much student and faculty input as the Committee

itself desired. This year, President Dixon stated, an ad

hoc Committee had been appointed to deal with this situ-

ation, and the Committee has proposed that in addition to

honorary degrees and the Distinguished Nevadan Award, a

Distinguished University Service Award or Medal be author-

ized, to be awarded by the President.



Dr. Dixon noted that this proposal by the Committee is based

on the fact that honorary degrees are regarded as an exten-

sion of the academic function of the University, with recip-

ients typically those persons who have done things which

are noteworthy on an international or national scene. The

Distinguished Nevadan designation refers to public service

in general as performed by people defined as Nevadans.



President Dixon recommended approval of the Distinguished

University Service Award, to be given in recognition of

service to the University; e. g., leadership, work, money

or anything else which has served the University in an

extraordinary way, and that the award be implemented at

the UNLV Commencement in 1979. Chancellor Baepler con-

curred.



Miss Mason moved approval. Motion seconded by Mr. Ross,

carried without dissent.



6. Bid Opening, Remodel and Additions to Buildings, UNLV



President Dixon reported that bids were opened December 19,

1978, for remodel and additions to buildings at UNLV, in-

cluding an addition to the existing Business Services build-

ing, alteration to the Geoscience building, Grant Hall air

conditioning remodel, and addition of a baffled ceiling to

the display area of the Museum of Natural History building.

Bids were as follows:



Base Bid Alt A-1 Alt A



Argus Construction Co. $615,700 $124,000 $171,000

Blanchard Construction Co. 626,900 131,600 176,400

Empire Construction Co. 620,900 126,700 174,800



Alt B Alt C Alt D



Argus Construction Co. $7,000 $10,000 $7,500

Blanchard Construction Co. 7,500 13,000 9,800

Empire Construction Co. 7,500 12,200 7,500



Alternates:



A-1 Athletic Field Storage Buildings (construction of

building).

A Museum of Natural History (remodel and addition to

existing building, Phase IIB).

B Museum of Natural History Building Addition (surface

painting; door installation and finishing; composition

base installation; rigid insulation and gypsum board

installation).

C Museum of Natural History Building Security Detection

and Fire Alarm Systems (install fire alarm system;

complete security detection system).

D Museum of Natural History Building (display area)

Lighting Track (install lighting track system).



Dr. Dixon reported that the staff of the State Public Works

Board has recommended award of a contract to Argus Construc-

tion Company for the base bid plus Alternate A-1, for a to-

tal of $739,700, which is within the construction budget for

the project of $742,400. President Dixon and Chancellor

Baepler recommended concurrence by the Board of Regents.



Mr. Karamanos moved approval. Motion seconded by Mr.

Mc Bride, carried without dissent.



7. Bid Opening, Site Improvements, UNLV



President Dixon reported that bids were opened January 4,

1979 for site improvements at UNLV, with the following

results:



Base Bid Alt A Alt B Alt C



Rico Paving & Grading $588,340 $32,700 $18,768 $ 9,150

Las Vegas Paving Corp. 617,251 33,650 16,500 8,400



Alt D Alt E Alt F



Rico Paving & Grading $36,659 $17,270 $19,800

Las Vegas Paving Corp. 45,153 11,800 20,500



Alternates:



A Landscaping and irrigation system for south side

parking lot.

B Walkway lighting, P. E. Complex.

C Provide and install exposed aggregate finish concrete

in lieu of wavy broom finish.

D Life Science building - north improvements.

E Concrete walkway and benches for windbreak.

F P. E. Complex landscaping strip.



At President Dixon's request, System Architect Harry Wood

reported that the State Public Works Board had recommended

award of a contract for the Base Bid and Alternate A to Rico

Paving and Grading Co. in the total amount of $621,040. He

noted that the construction budget of $602,100 will be aug-

mented by $15,695 representing repayment from a power com-

pany escrow account, and $3,245 from the project contingency

fund.



Chancellor Baepler recommended that the Board of Regents

concur in the award by the State Public Works Board of a

contract to Rico Paving and Grading Co. for $621,040, as

outlined by Mr. Wood.



Miss Mason moved approval. Motion seconded by Mr. Mc Bride.



Mr. Buchanan moved to amend the motion to provide that

$18,768 be allocated from the Board of Regents Special

Projects Account to fund Alternate B to permit the install-

ation of walkway lighting for the P. E. Complex. Motion to

amend seconded by Dr. Lombardi. Amended motion then carried

without dissent.



8. Establishment of New Department, UNLV



President Dixon presented a proposal for a new Department

of Public Administration at UNLV, to be accomplished by a

separation of this program from the Department of Political

Science. He noted that no new professional positions will

be required to accomplish this separation; however, there is

a possibility that a new secretarial position would ulti-

mately be needed, as well as a Departmental office. Ration-

ale for the proposed split was included in a memorandum from

President Dixon (identified as Ref. C and filed with perman-

ent minutes).



Chancellor Baepler concurred in the proposal, noting that

in accordance with Board policy on creation of new Depart-

ments this matter will be placed on the February agenda for

action.



9. Appointments to Community College Advisory Boards



A. Clark County Community College - President Kreider

recommended the following appointments to Clark County

Community College Advisory Board for a two-year term

beginning January, 1979:



Mr. Allan D. Bray Mr. Fred D. Gibson, Jr.

Mr. Boyd Bulloch Col. Oscar A. Heinlein

Father Caesar Caviglia Mr. J. David Hoggard, Sr.

Mr. Gary Collie Mrs. Ann Lynch

Mrs. Reba Dolan Mr. Ben Schmoutey

Ms. Isabel Espinoza Mr. Aaron Williams

General Mahlon Gates Mr. David Wurt



B. Northern Nevada Community College - President Berg

recommended the following appointments to the Northern

Nevada Community College Advisory Board for the terms

indicated beginning January, 1979:



Mr. Greg Austin - two years

Mr. Harvey Barnes - one year

Mrs. Marla Boies - one year

Dr. H. S. Collett - two years

Mr. Steve Hernandez - one year

Mr. M. E. Lundberg - one year

Mr. Hugh Mc Mullen - two years

Mr. Warren Monroe - one year

Mr. Frank Stanko - two years

Mr. Bill Wunderlich - two years



Ex Officio: Elko County School Superintendent

Humboldt County School Superintendent

Eureka County School Superintendent

Lander County School Superintendent

White Pine County School Superintendent



C. Western Nevada Community College - President Davis

recommended the following appointments to the Western

Nevada Community College Advisory Board for a one-year

term beginning January 1979:



Mrs. Melba Alldredge Dr. Marvin Picollo

Mr. Grant Anderson Mrs. Marie Louise Raymond

Dr. Lloyd Diedrichsen Mr. Harold Sexton

Dr. Ralph Di Sibio Mr. Frank Titus

Mr. John Gamble Mrs. Shirlee Wedow

Mrs. Barbara Hug Mr. John D. Winters

Dr. Clifford Lawrence Mr. Hans Wolfe



Mrs. Fong suggested that Mr. Jim Arnold be invited to serve

on the Clark County Community College Advisory Board.



Mr. Karamanos moved approval of the appointments as recom-

mended with the addition of Mr. Arnold if he is willing to

serve in this capacity. Motion seconded by Miss Mason,

carried without dissent.



It appeared to be the consensus of the Regents that letters

appointing these members should be sent on behalf of the

Board of Regents and that notices of meetings and minutes of

such meetings should be provided to members of the Board of

Regents.



10. Department of Real Estate and Finance, CCCC



President Kreider recalled that in December he had requested

authorization to establish a Department of Real Estate and

Finance within the Business Division Of Clark County Commu-

nity College, with action to be taken by the Board at this

meeting. President Kreider and Chancellor Baepler recom-

mended approval.



Mr. Buchanan moved approval. Motion seconded by Mr. Ross,

carried without dissent.



11. Proposed New Departments, CCCC



President Kreider presented a proposal for the establishment

of two new Departments at CCCC, whereby a Fine Arts and

Communications Department and an English and Foreign

Language Department would replace the present Department

of Humanities. Rationale in support of the division of the

existing Department of Humanities was included with the

agenda (identified as Ref. D and filed with permanent

minutes).



Chancellor Baepler recommended approval, noting that in

accordance with the Board's policy on approval of new

Departments, this request will be placed on the February

agenda for action.



12. Scholarship Report for UNR for 1977-78



Dr. Robert Mc Queen, Chairman of the UNR Scholarship and

Prizes Committee, presented the 1977-78 Scholarship Report.

(Report on file in the Chancellor's Office.) This report

reflected annually paid scholarships totaling $226,000 and

endowed awards totaling more than $242,100, relfecting an

overall single year increase in total available scholarship

dollars over 1976-77 of 22%.



13. Death of Edward A. Olsen



President Crowley reported the death of Edward A. Olsen,

Emeritus Director of Information for the University of

Nevada.



Mrs. Knudtsen moved that an appropriate message be sent to

Mr. Olsen's family reflecting the appreciation of the

Regents and the University community for his contributions

to the University and to the State and expressing the con-

dolences of the Board. Motion seconded by Dr. Lombardi,

carried unanimously.



14. Proposed Change in Graduate School Admission Requirements,

UNR



President Crowley presented a proposal from the UNR Graduate

Council for a change in the admission requirements for

Graduate School to require that GRE or other applicable test

scores be filed with the Graduate School prior to applica-

tion of admission to Graduate Standing. He noted that cur-

rent regulations encourage the taking of the GRE before

admission and require that it be taken not later than the

end of the first semester of graduate standing work.



President Crowley further noted that it is not intended that

the Graduate School will establish any minimum levels that

must be attained on the GRE; rather, it will be used to pro-

vide the Departments and the Graduate Dean with additional

criteria with which to judge applicants to Graduate School.

Chancellor Baepler recommended approval.



Mr. Buchanan objected to what he termed as an additional

obstacle to admission to Graduate School and moved that the

proposed change not be approved. Motion seconded by Mrs.

Fong.



Mrs. Fong explained that her objection to the proposed

change was that she believed the requirements should be

uniform at both Universities and this change would serve

to increase the differences in admission policies.



Chancellor Baepler urged that uniform standards not be

superimposed on the two Universities. He suggested that

the GRE has a great value in the evaluation process of

applicants for graduate school and is a very common re-

quirement throughout the country. He disagreed that it

would be an additional hurdle, pointing out that the exam-

ination must be taken and this proposal only changes the

timing.



Senate Chairman Paul Page and Graduate Council Chairman Tom

Ringkob also spoke in support of the proposed change.



Motion to deny approval failed by the following roll call

vote:



Yes - Mr. Buchanan, Mrs. Fong, Miss Mason

No - Mr. Cashell, Mr. Karamanos, Mrs. Knudtsen, Dr.

Lombardi, Mr. Mc Bride, Mr. Ross



Mrs. Knudtsen moved approval of the proposed change. Motion

seconded by Mr. Karamanos, carried by the following roll

call vote:



No - Mr. Buchanan, Mrs. Fong, Miss Mason

Yes - Mr. Cashell, Mr. Karamanos, Mrs. Knudtsen, Dr.

Lombardi, Mr. Mc Bride, Mr. Ross



15. Nomination of Architects, Addition to Fine Arts Building,

UNR



President Crowley endorsed a recommendation from Dean

Stafford and the faculty of the College of Arts and Science

that the following nominees be submitted to the State Public

Works Board from which an architect will be selected for the

addition to the Church Fine Arts building:



1. Anshen and Allen

2. Parsons Design Group



Chancellor Baepler recommended approval.



Dr. Lombardi moved approval. Motion seconded by Mr. Ross,

carried without dissent.



16. Special Events Facility, UNR



Chancellor Baepler recalled that the Board had previously

authorized both Universities to proceed with planning for

special events facilities, to be funded from the slot

machine tax rebate. Subsequently, legislation was enacted

in the 1977 session and Federal legislation was passed to

provide the means of funding the projects. He noted that

UNR now has a project defined and ready for consideration

by the Board and requested President Crowley to proceed

with his presentation.



President Crowley reviewed the planning which has preceded

the conceptual design for a special events facility, noting

that a feasibility study was done by the firm of Crane,

Anderson, Inc. of Houston, Texas, and the conceptual design

which they had developed envisioned a multi-purpose center

that will provide a 12,000 seat arena which can be reduced

to 2,500-3,000 seats with stage capability for stage pres-

entations and concerts. The site of this Special Events

Center would be southeast of the Mackay Stadium and the

Fleischmann Atmospherium-Planetarium. Dr. Crowley also

noted the participation by the Wolf Club in the planning for

this facility, and introduced President Ernie Martinelli and

other members of the Wolf Club governing board.



Mr. Ralph Anderson, from the firm of Crane, Anderson, Inc.,

presented slides showing the architectural renderings of the

preliminary design for the facility.



Mrs. Fong moved approval of the conceptual design as pre-

sented. Motion seconded by Miss Mason.



ASUN President Neuweiler asked that the following resolu-

tion, passed unanimously by the ASUN Senate on November 15,

1978, be read into the minutes:



WHEREAS, the Senate of the Associated Students of the

University of Nevada, Reno, recognizes the need of a

Special Events Center, and



WHEREAS, the need for this Center is now, and



WHEREAS, ASUN encourages the Regents to recognize our

need for this Center,



THEREFORE, BE IT RESOLVED that the ASUN Senate does

hereby strongly support moving ahead with the project

of a Special Events Center with as little delay as

possible.



Motion for approval of the conceptual design carried

without dissent.



17. Proposal for Funding of Two Sports Arenas



Chancellor Baepler noted that the 1979 Legislative Session

would convene on Monday, January 15, and it was desirable

that efforts begin immediately to enlist the support re-

quired from the Legislature to fund the two sports arenas

in order that they may proceed simultaneously. Dr. Baepler

suggested that rough estimates for the Reno facility would

be $22-24 million and the Las Vegas facility would probably

be in the area of $28-30 million. He pointed out that the

proposed funding does not anticipate the imposition of addi-

tional taxes but would utilize an existing tax that has for-

merly gone to the Federal government and which will now come

back to the State.



Dr. Baepler proposed that the projects proceed in two phas-

es, with Phase I of each project proceeding simultaneously

through a revenue bond of approximately $22-26 million, and

borrow approximately $20-25 million from the State surplus,

thus permitting construction to commence during this bien-

nium. In 1981, an additional $16 million in revenue bonds

could be sold, using the proceeds to pay back a substantial

portion of the funds borrowed from the State, and in 1983,

again bond for $16-18 million to complete the repayment.

He suggested that the part of the two facilities included

in Phase II could conceivably be under construction before

completion of Phase I.



Dr. Baepler requested authorization from the Board to draft

the necessary legislation to permit the issuance of revenue

bonds and to commence negotiations for the loan from the

State surplus.



Mr. Ross moved approval. Motion seconded by Mr. Mc Bride,

carried without dissent.



18. Report of Investment Advisory Committee



Mr. Karamanos reported the following action of the

Investment Advisory Committee at its luncheon meeting:



(1) Approved a request from President Crowley that the nec-

essary action be instituted to effect sale of 50,000

shares of stock in American Smelters International

which have been donated to the Paul R. Pinching Ath-

letic Memorial Scholarship by Mr. James A. Joyce. The

proceeds of the sale would be added to the Pinching

Scholarship Fund.



(2) Received a request from Dr. Robert Weems, consultant

to the Investment Advisory Committee, that the Board

assume responsibility for payment of annual dues,

amounting to $75, for the Nevada Financial Society,

an organization which meets monthly to discuss in-

vestment policy. These dues have in the past been

paid by the Nevada Public Employees Retirment System,

and Dr. Weems' term with that body has now ended.

The Investment Committee recommends that the dues be

paid from the Board of Regents Special Projects

Account.



Mrs. Knudtsen moved approval. Motion seconded by Mr.

Karamanos, carried without dissent.



Mr. Cashell left the meeting and Vice Chairman Ross assumed the

Chair.



Mr. Buchanan requested that letters of appreciation be sent

to the former members of the Investment Advisory Committee.



19. Sabbatical Leave Recommendations



A. Clark County Community College - President Kreider

recommended the three sabbatical leaves available to

CCCC for 1979-80 be awarded as follows (summary of

proposed projects identified as Ref. E and filed with

permanent minutes):



La Rene Watts, Office Administration, one semester

Jack Ringler, History, one semester

Karl Swain, Counseling, one semester



Alternates:



1. Ken Hill, Audio Visual, academic year

2. Don Starr, Data Processing, academic year



B. Western Nevada Community College - President Davis

recommended the three sabbatical leaves available to

WNCC for 1979-80 be awarded as follows (summary of

proposed projects identified as Ref. F and filed with

permanent minutes):



Mary Sue Ferrell, Learning Resources, one semester

Robert I. Rose, Mathematics, one semester

David Wood, Student Services, one semester



Alternate:



1. Ronald Remington, Psychology, one semester



C. University of Nevada, Las Vegas - President Dixon

recommended the seven sabbatical leaves available to

UNLV for 1979-80 be awarded as follows (summary of

proposed projects identified as Ref. G and filed with

permanent minutes):



Bernard Malamud, Economics, one semester

Wesley Niles, Biological Sciences, one semester

Gary Palmer, Anthropology, academic year

Frederick Preston, Sociology, academic year

Henry Sciullo, Marketing, one semester

A. W. Stevens, Humanities, one semester

Thomas C. Wright, History, one semester



Alternates:



1. Rudolf Koester, Foreign Languages, one semester

2. Jean Decock, Foreign Languages, academic year



No applications were received from NNCC or DRI faculty.



Dr. Lombardi moved approval. Motion seconded by Mr. Mc

Bride, carried without dissent.



Mr. Cashell resumed the Chair.



20. Faculty Dissatisfaction with Health Care Package



Dr. Vernon Mattson, Chairman of the UNLV Faculty Senate,

reported the Executive Committee's concern over the inade-

quacy of the health care insurance, and the Committee's

opinion that the Board of Regents should be informed about

the threat to faculty morale generated by the deep dissat-

isfaction with the health care package available to the

faculty.



Dr. Paul Page, Chairman of the UNR Faculty Senate, concurred

in the expressions of concern by UNLV Faculty, and supported

the request for improvement.



Dr. Alfred Stoess, Chairman of the State Group Insurance

Committee, reported concerning the policy currently avail-

able and the proposal which will be made to the 1979

Legislature for improvement in that package.



In the discussion following, there appeared to be consensus

among the Regents that the health insurance package was

inadequate and that efforts toward improvement would be

supported by the Board. Chairman Cashell requested that the

Board be kept informed of efforts by the Administration,

Faculty and the State Insurance Committee in order that the

Board may assist wherever possible.



21. Appointment of Independent Auditors



Chancellor Baepler recalled that in 1970, the Board adopted

a policy of rotation of independent audit firms on a 3-year

basis. The present auditors are now completing the 3rd and

final year of their audit responsibilities.



Dr. Baepler noted that it has been the recommendation of

each CPA firm serving as independent auditors on this 3-year

cycle, as well as the System Business Officers, that three

years is too short a cycle to be productive and is ultimate-

ly more costly to the University. As a result, the System

Business Officers have recommended that the audit period

between rotations be extended to five years.



Dr. Baepler also reported that in preparation for appoint-

ment of a new independent audit firm for the ensuing rota-

tion period, a list of CPA firms licensed to practice in the

State of Nevada was obtained from the State of Nevada Board

of Accountancy office. A preliminary screening was done to

eliminate smaller firms that could not handle an audit of

this scope. Proposals were then requested from the remain-

ing firms. In developing their proposals, representatives

of the firms consulted with the Chancellor, staff of the

Computing Center and the two Business Centers and with the

Internal Audit staff. Interviews of representatives of 10

firms submitting proposals were then held, with the Director

of the Computing Center, the Controllers, the Director of

Internal Audit and the Senior Staff Auditor participating.

Following the completion of these interviews, the Director

of Internal Audit recommended to the Chancellor that the

firm of Arthur Young and Company be retained for the next

audit cycle.



Chancellor Baepler endorsed the recommendation of the Di-

rector of Internal Audit and recommended the appointment of

Arthur Young and Company as independent auditors for the

University of Nevada System for the next five fiscal years,

beginning with the fiscal year ending June 30, 1979. The

fee for examination of the financial statements of UNS and

its related activities and funds for this first fiscal year

will be $52,000, which will include the continued use by UNS

of computer audit software provided by Arthur Young and Com-

pany and staff training seminars for an individual of the

UNS Internal Audit staff, at no additional cost to the

University.



Mr. Ross moved adoption of the five-year cycle concept as

included in the Chancellor's recommendation. Motion sec-

onded by Mrs. Knudtsen, carried without dissent.



In the discussion following, there appeared to be some con-

cern that the Regents were not adequately involved in the

review of proposals submitted by the CPA firms. There was

also objection to the proposed retention of an out-of-state

firm registered by Mr. Doug Peterson, partner in the firm of

Kafoury, Armstrong and Turner.



Dr. Lombardi moved that the present three year contract with

Kafoury, Armstrong and Turner be extended for another two

years. Motion seconded by Mrs. Knudtsen.



Motion was then withdrawn.



Mr. Mc Bride moved that the Chairman appoint a subcommittee

of the Board to work with the Internal Audit staff to review

the proposals submitted and report back to the Board at the

next meeting. Motion seconded by Mr. Karamanos, carried

without dissent.



Chairman Cashell appointed a subcommittee consisting of Mrs.

Fong, Dr. Lombardi, Mr. Karamanos, with Mr. Mc Bride to

serve as Chairman.



22. Chancellor's Report



Chancellor Baepler reported on the status of the Univer-

sity's budget, noting that tentative figures have been re-

leased by the Governor, but definitive figures would not be

available until the following week. The figures released

indicate that for the Community Colleges, the proposed bud-

get will not permit great expansion but will permit them to

keep up with anticipated growth. The budget for the Comput-

ing Center is essentially a no-growth budget. Because the

Computing Center is presently understaffed and underfunded,

this causes concern to all units of the University and ef-

forts will be made to increase this budget. The DRI budget

is also a no-growth budget, allowing the Institute to main-

tain its present administrative structure and to continue

some of its existing State-funded projects. Whether or not

any of the proposed new projects for DRI are funded will be

up to the Legislature.



Chancellor Baepler reported that the budgets for the two

Universities are of greater concern. Essentially, he noted,

the Budget Office went back to the 1977 budget, used that as

a base and treated it as if it were a totally adequate budg-

et, making additions and cuts accordingly. Because the Uni-

versities have experienced decreased enrollments, faculty

reductions are projected in the budget figures. However,

Dr. Baepler pointed out, the Universities are budgeted very

thinly in terms of student-faculty ratios and reductions of

faculty, unless done on a programmatic basis, would be ex-

tremely detrimental to the quality of the institutions. He

reported that the Governor has expressed great concern that

this kind of detrimental across-the-board cutting not occur

and it is hoped that the Governor will work with the Univer-

sity and with the Legislature in arriving at a solution to

what is considered to be a temporary problem. Given the

tremendous population increases occurring in both ends of

the State, it is anticipated that the Universities will be

significantly larger within the next several years than they

are now, and improvement in enrollments should be apparent

even within the biennium now under consideration by the

Legislature. Chancellor Baepler expressed confidence that

the University will not be finding itself standing before

the Legislature arguing for the very survival of our insti-

tutions, but cautioned that the budget will require consid-

erable measures of belt-tightening.



23. New Business



Mrs. Fong submitted for the record a letter received from

Senator Howard Cannon, which, she said, was in response to

her inquiry concerning the possibility of exchanging stu-

dents between the Peoples Republic of China and the Univer-

sity of Nevada. Chancellor Baepler agreed to make the ap-

propriate further inquiries on behalf of the University to

follow through on the suggestion initiated by Mrs. Fong.



The meeting adjourned at 4:00 P.M.



Bonnie M. Smotony

Secretary of the Board

01-12-1979