04/17/1987

UCCSN Board of Regents' Meeting Minutes
April 17-18, 1987








04-17-1987

Pages 80-86



BOARD OF REGENTS

UNIVERSITY OF NEVADA SYSTEM

April 17, 1987



The Board of Regents met in a special meeting on the above date

in Rooms 201-202, Donald Moyer Student Union, University of

Nevada, Las Vegas.



Members present: Mr. Daniel J. Klaich, Chairman

Mr. James Eardley

Mr. Joseph M. Foley

Mrs. Dorothy S. Gallagher

Mr. Chris Karamanos

Mrs. Joan Kenney

Mrs. Carolyn M. Sparks



Members absent: Mrs. Jo Ann Sheerin

Mrs. June F. Whitley



Others present: Chancellor Mark H. Dawson

President Joseph N. Crowley, UNR

President John Gwaltney, TMCC

President George Hidy, DRI

President Robert Maxson, UNLV

Dr. Warren Fox, Vice Chancellor

Mr. Donald Klasic, General Counsel

Ms. Mary Lou Moser, Secretary



Chairman Klaich called the special meeting to order at 1:05 P.M.,

stating that the purpose of the meeting was to consider a pro-

posal received from Old College requesting affiliation to its

school, including the School of Law, with the University of

Nevada System. One additional item also was included on the

agenda.



1. Approved an Upper Limit for a Bond Issue for DRI



Approved raising the upper limit of a request to seek a bond

issue approved by the Board on April 2, 1987 for the Dandini

Research Park at DRI from $4.5 million, not to exceed $5

million. The increase was needed to provide for flexibility

in covering the costs for bonding service, engineering re-

view, and for Department of Public Works assistance. These

expenses were not provided for within the initial $4.5 mil-

lion limit. DRI intends to structure the building design

and construction concept to minimize its costs. Therefore,

it was projected that the entire $5 million would not be

used unless absolutely necessary.



Mrs. Gallagher moved approval to raise the upper limit for

a bond issue for the Dandini Research Park at DRI from $4.5

million, not to exceed $5 million. Mrs. Kenney seconded.

Motion carried.



2. Considered Proposal for Acquisition of Old College



Chairman Klaich stated that on April 10, 1987, he received a

proposal from the Board of Trustees of Old College request-

ing affiliation of its school, including the School of Law

and School of Humanities, with the University of Nevada Sys-

tem. (A copy is filed with the permanent minutes.) Because

of an urgency on the part of Old College, the special Board

meeting was called to consider the proposal.



Mr. Klaich read into the record a letter from Senator Paul

Laxalt, dated April 16, 1987, requesting serious considera-

tion of the proposal. (Copy filed with the permanent min-

utes.)



Dr. Allan De Giulio, President of Old College, distributed

a letter addressed to the members of the Board of Regents

from the Board of Trustees of Old College, dated April 17,

1987, filed with the permanent minutes, referring to two

recent studies which point out the need for a law school in

Nevada, and pledging assistance during a transition period

should the System decide to absorb Old College.



Mr. Bill Boyd, a trustee for 3 years, discussed the quality

of the students at Old College, citing that a number had

passed the Nevada Bar exam. He urged that the law school

be established at UNLV, and stated he felt there was a good

deal of community support available in Las Vegas for the

school.



Mr. Warren Nelson, Chairman of the Board of Trustees, pre-

sented an overview of Old College. The College began in

1980 with a humanities school with classes held behind the

Catholic Cathedral in downtown Reno. As the College grew,

a permanent structure was necessary, and the Gannett build-

ing became available. Gannett agreed to give the building

to the school, although the deed has not yet transferred

inasmuch as Gannett is still awaiting authorization from

the Internal Revenue Service. Old College renovated the

building with a $1.254 million grant which also included

acquisitions for the library. Mr. Nelson described the

facility as worth approximately $8.2 million, and assured

the Board that if UNS decided to acquire Old College, the

building also would be transferred to the System.



There is as yet an undetermined debt owed by Old College

through a loan with First Interstate Bank, secured by the

signatures of a number of the trustees of Old College. The

building cannot be used as collateral for the debt inasmuch

as the deed has not been transferred to Old College.



Mr. Nelson stated his concern is for the students who have

graduated, particularly those who have been in the Law

School. He emphasized that current studies done by Old

College for accreditation purposes indicate that there is

a need for a law school in Nevada. Further, he stated the

courses taught are geared to Nevada law and gaming in par-

ticular, which students going to out-of-state schools do

not receive. The Nevada Supreme Court decision allows Old

College graduates to take the Bar exam when they graduate.

However, the State of Nevada does not allow an attorney to

practice law unless he has graduated from an accredited law

school.



In discussing accreditation of the law school, Mr. Nelson

stated that the American Bar Association (ABA) is concerned

that the Gannett deed of trust for the building has not been

forthcoming. Old College will appear before the ABA April

23 and 24, 1987, for an accreditation hearing.



Mr. Nelson urged the Regents to consider the acquisition of

Old College.



In answer to a question from Regent Foley, Mr. Nelson stated

he could guarantee that the Gannett property would transfer

to the UNS should the Regents agree to absorb Old College,

and that he would volunteer to continue discussions with

Gannett on this matter.



Mr. John Flanigan, a trustee for 5 years, related that Old

College has made a good deal of progress, having paid the

price of starting law and humanities schools. He spoke of

the substantial library, the solid curriculum and the good

faculty at the College. As a trustee, he stated the demands

of the College have reached beyond their capabilities, and

that the ABA would only be satisfied if Old College were

affiliated with UNS.



Dr. Elaine Wynn, Chairman of the UNLV Foundation, related

that she has high regard for Mr. Nelson and the trustees of

Old College, and their considerable generosity. She urged

the Regents to throroughly investigate and analyze the need

for a law school at this time, stating that probably some

time in the future a school would be needed. She pointed

out that the integrity and accountability of the Board has

strengthened the System; that the prioritized needs of the

System have enabled the Foundation to draw on community sup-

port. Dr. Wynn also stated that the State Legislature is

looking to the Board for leadership in higher education.

During a legislative public hearing in Las Vegas, Dr. Wynn

and Mr. Steven Wynn testified concerning the need for in-

creased salaries of System employees. They are working with

the Clark County School District to recruit teachers to the

Las Vegas area.



Dr. Wynn urged the Board to retain its credibility by stand-

ing by the priorities as currently established and to focus

on these priorities. She stated that when a law school is

established, she felt it should be housed at UNLV but that,

in light of other priorities, such a school is premature.



Mr. Robert Hibbs, former member of the Board of Governors of

the American Bar Association and practicing attorney in Reno

and Las vegas, stated he was testifying as an individual.

He has served on evaluation teams for the ABA. These teams,

chosen by a formula, consist of a director of a law school,

2 members of law schools, 1 law librarian and 1 lawyer or

judge. Schools are evaluated every 7 years.



Mr. Hibbs complimented the prestigious group of Nevadans who

had a dream for a prestigious law school in the State. How-

ever, he said he felt this is a dream which cannot be a-

chieved through Old College. He stated he felt Nevada can-

not afford Old College and cannot afford the stigma of less

than a 1st-class law school; that Old College is not ac-

credited and is now asking to be rescued. Mr. Hibbs stated

he has discussed Old College with Dean James White, Indiana

School of Law, who is the head of the ABA accreditation team

for Old College, and questioned whether there would be a

difference in the decision to accredit the College if trans-

ferred to UNS and the response was negative. Dean White

informed him that if UNS did acquire the College, an ac-

creditation visit would be in order at that time. Also,

Dean White relayed that while the accreditation report was

confidential, the Regents could request a copy.



Mr. Hibbs suggested several areas the Regents should explore

prior to a decision on Old College: admission standards,

LSAT scores of students, retention of students, faculty

teaching experience and publishing ability. Mr. Hibbs re-

lated that the ABA team did not accept the financial records

as presented by Old College and subsequently had its own

accounting firm conduct an audit. Dr. De Giulio stated

that the ABA wanted to have a "Big 8" accounting firm do

its audits, and that Old had received a "clean audit" from

the firm, a copy of which was sent to Regents last week.

Of the 13 faculty, Dr. De Giulio stated only 2 do not have

a teaching background. He stated they would have the ABA

sent a copy of the accreditation report to the Regents. He

urged that Regents review the Old College study on the need

for a law school in Nevada, stating that the UNS study is

now 10 years old.



He related that the only item keeping Old College from ac-

creditation is the question of financial stability and felt

it would be much easier for UNS to acquire the accredita-

tion. Also, he related that the Northwest Accrediting As-

sociation would visit Old College the following week for

consideration of regional accreditation.



Speaking as an individual, Mr. Roland Miller, a practicing

attorney in California and Nevada, suggested the Regents

not base their decision on history, but on the issues: 1)

Does Nevada need a law school? 2) Does the University

System want a law school? 3) Can the University System

afford a law school? If the answers to these 3 questions

are in the affirmative, then consideration should be given

to the start-up costs and problems of a new school versus a

school that has been through the start-up procedures.



Mr. Klaich stated that the position of the Board of Regents

for the past 10 years has been that when a law school is

added to the System, it would be placed at UNLV, and pledged

his personal support for the site. He outlined the pro-

cedures for new programs coming into the System, which are

that a request is referred to the Academic Affairs Council

for review, which in turn refers to those Departments and

Colleges on the Campuses for further input and review before

decisions are reached. He emphasized that the current leg-

islative session is critical for UNS budgets and that the

Regents' first priority is for increased salaries for cur-

rent employees.



Chairman Klaich asked for comments from the Regents.



Regent Foley complimented Old College for offering all as-

sets as they now stand to a public system, but stated that

a definite answer could not be expected from the Regents

until the staff had time to review finances, programs, etc.

Further, he stated he has always favored a law school for

Nevada. Mr. Foley suggested the 1980 Regents Study be

brought up to date, that the Regents should renew their com-

mitment to the site for a law school at UNLV, and that the

costs for a law school should be reviewed in light of State

resources available for the current priorities of the Sys-

tem. He stated the gift of the facility from Old College

would relieve the need for capital improvement projects at

the northern institutions, citing the needs at UNR, TMCC and

the Chancellor's Office.



Mrs. Gallagher agreed that further study is needed before a

decision is made, and requested a time limit be set. Fur-

ther, she noted that the procedures for accepting new pro-

grams within the System can take up to 2 years.



Mr. Karamanos questioned whether Old College would be able

to continue through the Fall semester, with Mr. Nelson re-

plying that under the present circumstances it would con-

tinue only through the Spring semester.



Mrs. Kenney stated she agreed with Dr. Elaine Wynn's state-

ments, reiterating that the 1st priority of the Board is

for increased salaries, and that she favored a study of

the situation prior to making a decision.



Mrs. Sparks stated she had a number of questions, and began

with how UNS would support the Old College deficit as it

now stands. Dr. De Giulio stated he felt a reasonable

transition process could be accomplished within 4 to 6 weeks

and, in response to another question, confirmed that even if

the law school was to be moved to Las Vegas, the Gannett

building would revert to the System.



She further questioned that if law and humanities is a pack-

age, where would humanities be housed? Dr. Crowley answered

that UNR was interested in reviewing the humanities pro-

grams, studying the courses, funding for the programs and

where they might be integrated at UNR or at TMCC. Further,

Dr. Crowley related that he would like to quell the rumors

currently making the rounds that he had been a co-conspira-

tor in establishing Old College. He stated that he was very

much aware that the site for a law school within the System

had been set at UNLV prior to his becoming an officer of the

Board.



Dean Mary Stewart, Humanities School, Old College, stated

she felt that Old College was reaching a population not

served by the System in that students could take a program

for 4 to 5 years during evenings or weekends and earn a

degree.



Answering a question from Mr. Eardley, Dr. De Giulio stated

that the cost of a law school is $2-3 million per year. Mr.

Eardley commented that with the UNS budgets now under con-

sideration by the State Legislature, there would be a 2-year

lapse before UNS would be able to request State funding for

a new program.



Mrs. Gallagher questioned the amount needed over the next

several years to continue a school, with Dr. De Giulio re-

plying that roughly $3 million or less over the next 2

years would suffice. Mrs. Sparks questioned whether ac-

creditation would be obtainable after the $3 million debt

is retired, with the answer being affirmative.



In light of the accreditation meeting with the ABA on April

23 and 24, Mr. Klaich questioned what UNS should expect from

the ABA. Dr. De Giulio stated that, based on a pre-review

of the Old College application by several distinguished and

knowledgeable persons, he felt that only the financial sta-

bility of Old College was holding up the accreditation for

the College. Mr. Hibbs disagreed, stating that without

actually seeing the report, he felt there were other prob-

lems.



Mr. Eardley noted that there are several notes on Old Col-

lege which are held by trustees and which are payable on

demand. Dr. De Giulio stated that Old College has a line

of credit with First Interstate Bank backed by the Trustees,

but that it would not need to be paid off for several years.



In discussing the various studies concerning a law school

in Nevada, Professor Teich, Old College, stated that the UNS

study did not take into account the Gannett building, valued

now at $4.5 million, nor the $1.2 million library at Old

College.



Mr. Foley moved that the Board of Regents reaffirm the ac-

tion of the Board that should the University System estab-

lish a law school, it will be located in Las Vegas. Mrs.

Gallagher seconded. Motion carried unanimously.



Mr. Foley moved that the Board of Regents commend the of-

ficers and trustees of Old College for their most generous

offer to the University of Nevada System and their pledge

for transition, and to immediately refer this offer to the

Chancellor and staff, the Presidents' Council and the Aca-

demic Affairs Council to analyze all documents and to re-

port back to the Board their findings within 40 days. Mrs.

Sparks seconded. Motion carried unanimously.



Mr. Klaich requested that the accreditation report from the

ABA be released to UNS as soon as possible, along with all

documents so that the officers could complete the study, and

further, that the report include comments on the programs

and where they might transfer within the System, the finan-

cial aspects and, if the recommendation is to acquire the

College, the manner in which transition would take place.

Mr. Klaich also cautioned in assigning this study that no

pre-supposition to the recommendation or decision is made

by the Board at this time.



The meeting adjourned at 3:45 P.M.



Mary Lou Moser

Secretary

04-17-1987