June 28-29, 1990
06-28-1990
Pages 87-140
BOARD OF REGENTS
UNIVERSITY OF NEVADA SYSTEM
June 28-29, 1990
The Board of Regents met on the above dates in Rooms 201-202,
Donald Moyer Student Union, University of Nevada, Las Vegas.
Members present: Mrs. Dorothy S. Gallagher, Chairman
Mrs. Shelley Berkley
Dr. Jill Derby
Dr. James Eardley
Mr. Joseph M. Foley
Dr. Lonnie Hammargren
Mr. Daniel J. Klaich
Mrs. Carolyn M. Sparks
Mrs. June F. Whitley
Others present: Chancellor Mark H Dawson
President Anthony Calabro, WNCC
President Joseph Crowley, UNR
President John Gwaltney, TMCC
President Robert Maxson, UNLV
President Paul Meacham, CCCC
President Ronald Remington, NNCC
President James Taranik, DRI
Mr. Donald Klasic, General Counsel
Dr. Warren Fox, Vice Chancellor
Mr. Ron Sparks, Vice Chancellor
Ms. Mary Lou Moser, Secretary
Also present were Faculty Senate Chairmen Alan Balboni (CCCC),
Richard Brown (UNR), Isabelle Emerson (UNLV), Paula Funkhouser
(TMCC), Louis Grandieri (Unit), Michael Mc Farlane (NNCC), Steve
Mizell (DRI), and Acting Chairman Bonnie York (WNCC), and Student
Association Officers.
Chairman Dorothy Gallagher called the meeting to order at 9:35
A.M., Thursday, June 28, 1990.
1. Approved the Consent Agenda
Approved the Consent Agenda (identified as Ref. A, filed
with the permanent minutes) containing the following:
(1) Approved the minutes of the regular meeting held
May 17-18, 1990 with the following amendment as noted
by Mr. Klaich:
On page 67, Item 7, Report and Recommendations of
the Investment Committee, second paragraph, second
sentence, it should read, "Mr. Klaich replied that
the Investment Committee had a meeting on the mat-
ter."
(2) Approved the gifts, grants and contracts, listed in
Ref. C-1, filed with the permanent minutes.
(3) Approved the following appointments to the University
of Nevada School of Medicine Advisory Board:
David Clark, Reno
H. Gregory Nasky, Las Vegas
Ernest Martinelli, Reno
Wayne Williams, Las Vegas
Ralph Denton is now a Honorary Member.
James Johnson is now the Chairman.
Sig Rogich has resigned.
(4) Approved to grant permission to Sierra Pacific Power
Company to widen existing power line right-of-way
routes and to establish two (2) new right-of-way
routes on Main Station Field Lab property, UNR.
Sierra Pacific's original offer for the new right-of-
way was $55,000, based on a September 30, 1989 apprais-
al. The University obtained its own MAI appraisal,
which has set the easement value as $69,000. The dif-
ference in values was due partially to a miscalcula-
tion on right-of-way footage dimensions. Sierra
Pacific has agreed to pay the higher value and to re-
imburse the University for the $1,600 appraisal fee.
General Counsel Klasic recommended approval subject
to review of legal documents.
(5) Approved the opening of a bank account in London, Eng-
land to pay for the English Poll Tax and for miscel-
laneous expenses as they arise.
UNR has rented a flat in London for UNR faculty in the
London Studies Program. The account would have an in-
itial deposit of approximately $500 and would be oper-
ated on an imprest basis. It is also anticipated that
the account would be used by the faculty for personal
banking purposes. Unlike in the United States, it is
extremely difficult to open a personal account in
England. One must have local references to open such
an account, which is very exasperating to the faculty.
General Counsel Klasic recommended approval upon as-
surances of accounting safeguards being put in place.
(6) Pursuant to Section 3.4.8 of the University of Nevada
System Code, which outlines policies pertaining to a
tenured faculty member who elects to transfer employ-
ment to the Chancellor's Office, approval of tenure
for Dr. Warren H. Fox at the University of Nevada,
Reno, will be extended for a period of five years,
commencing at the next contract period, July 1, 1990.
(7) Approved the following interlocal agreements:
A. UNS Board of Regents/UNR and State Department of
Human Resources
Effective: July 1, 1990 to June 30, 1991
Amount : $158,040 to UNR
Purpose : UNR to provide psychiatric coverage
to Rural Clinics Offices.
B. UNS Board of Regents/UNR and State Department of
Wildlife
Effective: July 1, 1990 to June 30, 1991
Amount : $11,650 to UNR
Purpose : Providing library clerical work in
support of the habitat/engineering
and fisheries divisions.
C. UNS Board of Regents/UNR and State Housing Division
Effective: Upon signature until completion of
services.
Amount : $28,620 to UNR
Purpose : To perform an analysis of housing
markets in rural Nevada.
D. UNS Board of Regents/UNR on behalf of School of
Medicine and State Health Division
Effective: July 1, 1990 to June 30, 1991
Amount : Costs to be reimbursed to School of
Medicine.
Purpose : To provide screening, examination and
services for the Craniofacial Clinic.
E. UNS Board of Regents/UNR and State Division of
Mental Hygiene and Mental Retardation
Effective: July 1, 1990 to June 30, 1991
Amount : $10,000 to UNR
Purpose : To provide one UNR Psychology Doctoral
Candidate Intern to the Division.
F. UNS Board of Regents/UNR and State Department of
Education
Effective: June 18, 1990 to June 30, 1990
Amount : $6,240 to UNR
Purpose : To provide seminars to the Department
of Education.
G. UNS Board of Regents/UNR and Division of Mental
Hygiene and Mental Retardation
Effective: July 1, 1990 to June 30, 1991
Amount : $11,000 to UNR
Purpose : To provide one Doctoral Candidate In-
tern to the Division.
H. UNS Board of Regents/UNR and the State Department
of Commerce
Effective: July 1, 1990 to June 30, 1991
Amount : $25,629 to UNR
Purpose : To provide seminars to the Department
of Commerce.
I. UNS Board of Regents/UNR and the State Department
of Commerce
Effective: July 1, 1990 to June 30, 1991
Amount : $18,482 to UNR
Purpose : To provide seminars to the Department
of Commerce.
J. UNS Board of Regents/UNR and the State Department
of Wildlife
Effective: July 1, 1990 to June 30, 1991
Amount : $15,000 to UNR
Purpose : To provide a Scientific Assistant to
the Department.
K. UNS Board of Regents/UNR and the State Department
of Wildlife
Effective: July 1, 1990 to June 30, 1991
Amount : $20,000 to UNR
Purpose : To provide clerical support to the
Department.
L. UNS Board of Regents/UNR and the State Department
of Wildlife
Effective: July 1, 1990 to June 30, 1991
Amount : $9,590.40 to UNR
Purpose : To provide a Science Assistant to the
Department.
M. UNS Board of Regents/UNR and the State Department
of Wildlife
Effective: July 1, 1990 to June 30, 1991
Amount : $15,500 to UNR
Purpose : Investigation and research into
"Special Problems in Wildlife Manage-
ment".
N. UNS Board of Regents/UNR and the Division of
Environmental Protection
Effective: May 30, 1990 to November 30, 1990
Amount : $39,078 to UNR
Purpose : Study and investigation for a water
pollution control program.
O. UNS Board of Regents/UNR and the Department of
Education
Effective: August 6, 1990 to June 30, 1991
Amount : $3,120 to UNR
Purpose : Special Education Seminar.
P. UNS Board of Regents/UNLV and State Department of
Wildlife
Effective: July 1, 1990 to June 30, 1991
Amount : $18,000 to UNLV
Purpose : To undertake cooperative investiga-
tions concerning Wildlife Management.
Q. UNS Board of Regents/UNLV and State Department of
Commerce
Effective: July 1, 1990 until mutual termination
Amount : $10,345 to UNLV
Purpose : To provide real estate seminars.
R. UNS Board of Regents/UNLV and State Council on the
Arts
Effective: Upon signature of the contract until
its completion.
Amount : $6,500 to UNLV
Purpose : UNLV to provide a study on the economic
impact of the arts in Nevada.
S. UNS Board of Regents/UNLV and State Department of
Education
Effective: July 16, 1990 to July 28, 1990
Amount : $5,200 to UNLV
Purpose : To provide a seminar for the Depart-
ment.
T. UNS Board of Regents/UNLV and the Clark County
School District
Effective: July 1, 1990 to indefinite with 90-day
notice of termination by either party.
Amount : No exchange of money. UNLV provides
space and student trainees and School
District supplies the program.
Purpose : To establish a preschool special educa-
tion program.
U. UNS Board of Regents/UNLV and the State Department
of Wildlife
Effective: July 1, 1990 to June 30, 1991
Amount : $3,600 to UNLV
Purpose : A renewal to the Endemic Fish Study.
V. UNS Board of Regents/CCCC and the State Occupa-
tional Information Coordinating Committee
Effective: July 1, 1990 to June 30, 1991
Amount : $1,995 to SOICC
Purpose : The SOICC to provide job information
to CCCC.
W. UNS Board of Regents/CCCC and the State Job
Training Office
Effective: July 1, 1990 to June 30, 1991
Amount : $117,000 to CCCC
Purpose : To provide counseling services to
displaced homemakers.
X. UNS Board of Regents/NNCC and the State Occupa-
tional Information Coordinating Committee
Effective: July 1, 1990 to June 30, 1991
Amount : $600 to SOICC
Purpose : The SOICC to provide job information
to NNCC.
Y. UNS Board of Regents/TMCC and the State Department
of Human Resources
Effective: July 1, 1990 to June 30, 1991
Amount : Costs to be reimbursed to TMCC.
Purpose : To provide dental screening examina-
tions and preventive services to eli-
gible children.
Z. UNS Board of Regents/TMCC and the State Occupa-
tional Information Coordinating Committee
Effective: July 1, 1990 to June 30, 1991
Amount : $1,500 to SOICC
Purpose : The SOICC to provide job information
to TMCC.
Za. UNS Board of Regents/WNCC and the State Occupa-
tional Information Coordinating Committee
Effective: July 1, 1990 to June 30, 1991
Amount : $1,800 to SOICC
Purpose : To provide SOICC job information to
WNCC.
Dr. Eardley moved adoption of the Consent Agenda with the
amendment as stated in Item (1) above, and approval of the
prepared agenda with the authority to change the order of
items as specified throughout the meeting. Mr. Klaich
seconded. Motion carried.
2. Chairman's Report
Chairman Gallagher announced that the Board of Regents' Fall
Workshop will be held at Mt. Charleston on October 18-19,
1990.
Dr. Derby entered the meeting.
Chairman Gallagher announced that UNS will be taking a
leadership role in science and technology in Nevada by spon-
soring a symposium on August 23-24, 1990 at the Thomas and
Mack Center at UNLV. President Taranik stated that the
symposium will be entitled "Science and Technology for
Nevada's Economic Future" and will include several partic-
ipants from around the State. The symposium will focus
on such topics as what is important to Nevada, strategic
planning for Nevada, what other States are doing by way of
science and technology, and other topics. A report on the
symposium will be produced after the symposium for dissem-
ination to the System and symposium participants.
Dr. Hammargren entered the meeting.
Chairman Gallagher announced that the Investment Committee
meeting will be held at 1:00 P.M., Friday, June 29, 1990,
due to a conflict.
3. Chancellor's Report
Chancellor Dawson reported that the graduation rates for
1989-90 were as follows:
Associate degrees/certificates 1,047
Baccalaureate degrees 2,004
Graduate degrees (master's, doctoral) 539
Total 3,590
In addition, he stated that WNCC graduated 27 students from
the prison program. Of the 17 associate degrees awarded,
one person from Northern Nevada Correctional Center and one
person from the women's prison graduated Summa Cum Laude.
He stated that "it is never too late to make important life
changes." Dr. Derby stated that she attended the prison
graduation ceremony and was very impressed. She commended
President Calabro and his staff. President Calabro inform-
ed the Board that Mr. Mike Hill and his staff have been
working very hard with the program to make it successful.
Chancellor Dawson stated that he has met with the student
leaders to discuss tuition and fees, and commended each
of them for their preparation and research on the subject.
Recommendations will be forthcoming at the August Board
meeting. Mr. Klaich commended the students, Chancellor
Dawson and the Chancellor's staff for working together on
this issue.
Chancellor Dawson stated that he has formed a UNS committee
to study housing for faculty by subsidizing loans through
the State.
Vice Chancellor Warren Fox informed the Board that there
were 60 students who attended the Southern Nevada Young
Scientists' Camp in June at UNLV.
4. Approved Tenure, Dean of College of Human and Community
Sciences, UNR
Approved tenure for Dr. Jean L. Perry who will become Dean
of the College of Human and Community Sciences at UNR,
effective July 16, 1990. Tenure would be for Dr. Perry as
Professor of Physical Education.
Dr. Eardley moved approval of tenure for Dr. Jean L. Perry,
Dean of the College of Human and Community Sciences at UNR.
Mrs. Sparks seconded. Motion carried.
5. Approved Emergency Item to Approve Tenure Recommendation,
UNR
Chancellor Dawson requested the Board to consider an em-
ergency item for UNR to grant tenure effective for the
1990-91 year. This request for tenure was subject to a
grievance process under provisions of the UNR Bylaws. That
process has just been concluded. It is necessary that, if
the Board approves, the tenure is to be incorporated into
the contract for 1990-91.
Mr. Klaich moved approval to consider an emergency item for
UNR to grant tenure effective for the 1990-91 year. Mrs.
Whitley seconded. Motion carried.
6. Approved Recommendation for Award of Tenure, UNR
Approved the following recommendation for tenure forwarded
for Board consideration:
A. University of Nevada, Reno
President Crowley recommended the following award of
tenure, effective July 1, 1990:
Sitadri Bagchi, Assistant Professor of Mathematics,
Arts & Science.
Mrs. Whitley moved approval of the recommendation for
tenure at UNR. Dr. Eardley seconded. Motion carried.
President Crowley stated for the record that if the informa-
tion had been available during the regular process of grant-
ing tenure, it would have been approved.
7. Approved Title Change, NNCC
Approved a change in title for Carl Diekhans from Associate
Dean of College Services to Dean of College Services at
NNCC, effective July 1, 1990.
Dr. Eardley moved approval of the title change from Associ-
ate Dean of College Services to Dean of College Services at
NNCC. Mrs. Whitley seconded.
President Remington stated that there would be no additional
salary increase at this time for Mr. Diekhans. He further
commented that there is disparity among Dean titles at the
Community Colleges, and Mr. Meacham added that it is a phys-
ical disparity. Dr. Eardley questioned why Deans at the
two smaller Colleges are paid at a higher salary than the
Deans at the two larger Colleges, and Dr. Calabro replied
that the distribution of student population, the service
area, and differing programs contribute to the added re-
sponsibilities of the Deans at the smaller Colleges. Dr.
Remington replied that the Deans at the smaller Colleges
report directly to the President, whereas at the larger
Colleges the Deans report to the Vice Presidents.
Motion carried.
Chairman Gallagher relinquished gavel to Regent James Eardley,
Chairman of the Budget and Finance Committee, which sat as a
committee of the whole.
8. Budget and Finance Committee
The Budget and Finance Committee, meeting as a committee of
the whole under the Chairmanship of Regent Eardley, acted
as follows:
(1) Approved the expenditures of Capital Improvement Fee
Funds in the amount of $1,300,400 for the following
projects at UNLV:
A. Landscaping and sitework for residential $300,000
units, Greek housing, Architecture, and
other Campus areas.
B. Emergency roofing projects for Mc Dermott 436,400
Physical Education, White Hall, Barrick
Museum, Dickinson Library, and Ham Fine
Arts. Other institutional funds totaling
$292,000 have been allocated.
C. For the lease and installation of 24 modu- 564,000
lar units for classrooms and offices.
Chancellor Dawson explained that it would be appro-
priate for UNS to approach the Interim Finance
Committee to seek reimbursement for the lease and
installation of the 24 modular units for class-
rooms and offices in the amount of $564,000.
Mrs. Berkley moved approval of the expenditure of
Capital Improvement Fee Funds at UNLV in the amount
of $1,300,400 as noted above and granted authority
for UNS to approach the Interim Finance Committee to
seek reimbursement for the 24 modular units for class-
rooms and offices in the amount of $564,000. Dr.
Eardley seconded. Motion carried.
President Maxson brought to the attention of the com-
mittee a problem with time frames regarding new con-
struction requests. He stated that at the last Leg-
islative Session the Legislature granted $8-10 million
for residence halls and $8-10 million for a Health
Science building. Next month students will be moving
into new Dormitories, which were obtained through the
sale of bonds as authorized by the Legislature. UNLV
has been able to move this construction project in a
timely manner. The funds were appropriated in the same
legislative session for the Health Science building,
however, construction has not even begun. This will
create a drastic hardship for classroom space on the
Campus, therefore UNLV must request the temporary 24
modular units for classrooms and offices. President
Maxson requested assistance from the Board of Regents
in working out a method for expediting construction.
Mrs. Gallagher requested the Chancellor to review this
process with the State Public Works Board.
(2) Approved the expenditure of UNR Capital Improvement Fee
Funds in the amount of $140,000 to purchase two real
estate parcels on Sierra Street. One parcel lies with-
in the area designated to be acquired and developed
first in UNR's recently approved Master Plan. The
second parcel is adjacent to UNR's recently acquired
Child Care facility and would be used to expand the
capabilities of that facility.
Mr. Klaich moved approval of the expenditure of Capital
Improvement Fee Funds at UNR in the amount of $140,000
as noted above. Dr. Derby seconded. Motion carried.
(3) Vice Chancellor Sparks presented the 1990 UNS Salary
Survey Report, filed in the Regents' Office. The
comparative analysis of 1989-90 faculty compensation
at the principal land grant Universities was compiled
from 51 principal land grant and other public Univer-
sities across the United States. This study has been
conducted for the 1985-86 and 1987-88 academic years,
therefore compensation trends in higher education in
the U. S. over this period have also been examined.
Techniques were used to adjust salaries and compensa-
tion for local, State and Federal taxes, housing costs,
and general costs of living as were described in detail
in the previous studies. Vice Chancellor Sparks re-
ported on many trends and statistics, which can be
found within the survey report.
Vice Chancellor Sparks requested the Committee to enter
various percent figures onto the appropriate bar graphs
in the report. These figures would clarify the graphs
for the Committee. Mr. Klaich stated that this report
will be used by the Legislators and requested that an
updated report to include the percentage figures be
made available to the Legislators.
According to the study, UNR and UNLV fall below the
median level with regard to salary ranking of the 51
Universities. UNR is -0.6% below the median and -13.4%
below the top quartile; and UNLV is -1.7% below the
median and -14.6% below the top quartile.
Vice Chancellor Sparks continued his report with the
comparative analysis of 1989-90 faculty compensation
at medium-enrollment urban Community Colleges. He
stated that a number of the Community Colleges used
in the previous sample did not respond to the annual
American Association of University Professors' survey
making it impossible to track the same set of Commu-
nity Colleges between surveys. TMCC and CCCC fall be-
low the median level with regard to salary ranking of
47 Colleges. TMCC is ranked 29th being -4.6% below
the median and -17.0% below the top quartile; and CCCC
is ranked 32nd being -10.6% below the median and -23.7%
below the top quartile. He stated that WNCC and NNCC
are not urban Colleges, therefore were not included in
this survey, but had they been, WNCC would be ranked
31st and NNCC 41st.
(4) Chancellor Dawson introduced Dr. Jim Richardson, Chair-
man of the System Compensation Committee, who presented
the joint committee recommendations for professional
compensation benefits for 1991-93, as contained in Ref.
B-4, filed in the Regents' Office.
A. In the past, UNS has requested upward mobility in
regard to compensation, but this has not been
accepted by the Nevada State Legislature. The
Committee is now requesting a 5% per year cost-of-
living and a 3% merit in the base budget, along
with 100% employer-paid retirement for all profes-
sional employees. The Committee recommended that,
in lieu of a pay increase, the employer would pick
up the employee's share of retirement (10%) over
the biennium, which would be 5% per year. Dr.
Richardson requested the Board of Regents to reaf-
firm the salary goal of moving professional employ-
ees salaries into the upper quartile of the approv-
ed group of comparable institutions as soon as
possible. He further requested that if funds be-
come available from a new revenue source, this
salary goal should be achieved as soon as possible.
Dr. Derby questioned what the figures would be if
these goals were achieved, and Dr. Richardson stat-
ed that it would cost approximately $16.8 million
for the 100% employer-paid retirement for all pro-
fessional employees, and $17.3 million for the 5%
per year cost-of-living plus the 3% merit increase,
which is included in the base budget at this time.
Dr. Eardley noted that other State agencies have
requested to be placed on employer-paid retirement,
but were not granted any incremental raises. Dr.
Richardson stated that if the employer-paid retire-
ment recommendation was not achieved, that the UNS
Compensation Committee would request an increase in
salary.
Mr. Foley moved that the Board of Regents reaffirm
the salary goal of moving professional employees
salaries into the upper quartile of the approved
group of comparable institutions as soon as possi-
ble, and that, if funds become available from the
new revenue source, this goal be achieved as soon
as possible. Mrs. Berkley seconded.
Mr. Klaich stated, for the record, that he is in
support of the above motion, but emphasized that
he would not want the Board to attach priorities
at this time. UNS priorities have already been
set by the Board of Regents. In addition, he
would not attach a priority to any of the UNS
System Compensation Committee recommendations.
Mrs. Gallagher agreed with Mr. Klaich and recom-
mended that the UNS System Compensation Committee
report be accepted only.
Motion carried.
Mr. Foley moved approval of improving the compen-
sation package for professional employees, and
that the Board of Regents support the proposal to
fully fund the retirement contribution of profes-
sional employees. This contribution is currently
10% paid by the employee and 10% paid by UNS.
Moving to full employer paid retirement would re-
sult in an additional 10 being paid by UNS, at the
rate of 5% per year over the next biennium. Dr.
Hammargren seconded. Motion carried.
Both Mr. Klaich and Mrs. Gallagher stated the same
comments as made above in regard to the UNS priori-
ties.
B. The UNS System Compensation Committee recommended
the development of a $500-per-faculty fund to be
used for professional travel and development.
Mrs. Whitley moved approval of a $500-per-faculty
fund to be used for professional travel and devel-
opment. Mr. Klaich seconded.
Mr. Klaich stated the same comments as made above
in regard to the UNS priorities.
Vice Chancellor Sparks indicated that the Council
of Presidents have endorsed the salary recommenda-
tions, but did not forward a recommendation regard-
ing the faculty travel and development fund. He
pointed out to the Committee that they may want to
lower the amount of the fund.
Dr. Derby reminded the Committee that this issue
was discussed by the Community College Faculty
Relations ad hoc Committee and the recommendation
was accepted by the Board of Regents. President
Maxson stated that the Board of Regents have al-
ways asked the Presidents for their priority re-
quests. He stated that the Presidents do support
this request for a faculty travel and development
fund, but suggested that the Presidents have the
opportunity to place it respectively on the pri-
ority list.
Motion carried.
C. The UNS Compensation Committee recommended that the
System offer optional retirement plans for profes-
sional employees that will allow for transfer of
funds currently in the TIAA-CREF Retirement Plan.
The Committee requested that the Board of Regents
allot $30,000 from the Regents' Special Project
Funds to hire a consultant to assist in the devel-
opment of an RFP and in evaluation of responses.
D. The UNS Compensation Committee recommended that
Benefits Counselors be employed in both the north
and the south.
Mr. Klaich moved approval of the above recommenda-
tions C and D. Dr. Derby seconded. Motion car-
ried.
President Meacham stated that he completed support-
ed the recommendations presented by the UNS Compen-
sation Committee, but questioned the differences
between the Institutions in regard to the salaries.
He suggested that a workshop be held to discuss
this issue and Mr. Klaich requested the Chancellor
to study this further prior to the Special Budget
and Finance Committee meeting in July.
(5) Vice Chancellor Sparks outlined the 1991-93 Biennial
Budget Priority Request for New Funding. The number
one priority is the salary package and the employer-
paid retirement request. He stated that the priorities
will be discussed in further detail at the special
meeting in July.
Mr. Klaich stated that the Committee has not approved
anything within the priorities. He requested that
the Committee be presented the cost figures for the
priorities at the specia meeting in July so that
additional questions can be answered and reviewed.
The open meeting recessed at 11:45 A.M. and reconvened at 12:40
P.M., with all Regents present except Regents Berkley, Eardley,
Foley and Hammargren.
9. Approved Professional Salary Recommendations for 1990-91
Approved the professional salary recommendations for 1990-
91. Chancellor Dawson distributed the UNS Officer Salary
Recommendations, filed with the permanent minutes.
Mr. Klaich moved approval of the 1990-91 Officer Salary
Recommendations. Mrs. Whitley seconded. Motion carried.
10. Approved Handbook Change, Family Sick Leave
Approved the change in the Handbook, Title 4, Chapter 3,
Section 11, Family Sick Leave, as follows:
(4) Up to ten days of sick leave per contract year may be
charged for the following events in the immediate
family of a professional staff member; death; illness;
child rearing; medical, optometric or dental service
or examination. Requests for additional days beyond
the ten day limitation may be made in writing to the
appropriate appointing authority. Such requests for
leave must be approved by the appropriate appointing
authority.
(6) A professional staff member is entitled to use accum-
ulated sick leave for a temporary disability, which
includes child-bearing, upon approval of appropriate
appointing authority. Unpaid child-rearing leave may
be requested by either parent up to a maximum of one
year. The University guarantees that the professional
staff member will return to his or her original posi-
tion without loss of seniority or other benefits.
UNR Faculty Senate Chairman Richard Brown indicated that the
family sick leave issue originated from the UNR Faculty
Senate and was submitted to the System Compensation Commit-
tee for its endorsement. This Handbook change recognizes
the make up of the new modern family. UNR Faculty Senate
strongly endorses this change.
Mrs. Whitley moved approval of the Handbook change regard-
ing family sick leave. Mrs. Sparks seconded. Motion
carried.
11. Report on Nursing Articulation
The UNS ad hoc Committee on Nursing Articulation, formed by
the Chancellor to assist continued progress in Nursing ar-
ticulation, has developed a proposal designed to assure
quality, and facilitate the transfer of Nursing courses, as
contained in Ref. B, filed in the Regents' Office. Vice
Chancellor Fox distributed an update on the proposal, which
is also filed in the Regents' Office.
Vice Chancellor Fox explained that the proposal calls for
appropriate National League of Nursing (NLN) course-related
comprehensive examinations to be given at the end of each
of the following courses: Medical/Surgical Nursing, Obstet-
rics, Pediatrics, Psychiatric/Mental Health Nursing, and
Fundamentals of Nursing. All instructional Institutions
within UNS shall administer the NLN course-related compre-
hensive examinations at the appropriate lower-division or
upper-division level. These NLN tests will be used to
affirm the quality of Nursing instructional programs and
the level of competency and proficiency of Student Nurses.
This measure of performance will be considered as part of
an overall program by each Campus to improve student assess-
ment and student outcome initiatives. These examinations
will also allow the student, upon successful completion,
to transfer the course to UNLV and/or UNR.
Dr. Derby questioned how many credits could be transferred.
Vice Chancellor Fox indicated that there is a maximum of
64 credits that can be transferred into a four-year Nursing
program. Additional units at UNR may be accepted through
credit by examination.
Mrs. Sparks stated that she understood that UNLV would
accept students from the Community College as third year
students (2 + 2 program), which combines academic and
Nursing programs. She questioned whether UNR's Nursing
program accepted students in the same manner. Chairman
Gallagher stated that UNR's Orvis School of Nursing was
structured differently, in that all prerequisites are
completed prior to being accepted into the School of Nurs-
ing. This is due to UNR's accreditation standards. For
the Nursing program at UNR, students could be transferred
in as "Seniors", but might have other requirements to com-
plete in the general education courses which are require-
ments of the University. Mrs. Sparks questioned how the
gap of courses between the Senior year and Junior year
would be completed. Chairman Gallagher stated that these
courses would have to be taken at the Community College
prior to transfer, or taken at the University.
President Gwaltney stated that he commended the achieve-
ments that the ad hoc Committee on Nursing Articulation
has accomplished, but is hopeful that the NLN testing re-
quirement will be abandoned eventually. President Meacham
felt that the term "Seniors" was confusing.
Mrs. Berkley, Dr. Eardley and Dr. Hammargren entered the meeting.
President Crowley stated that acceptance to the UNR Nursing
program depended on the successful passage of the NLN tests,
and that all Institutions would give the NLN tests as a
quality control instrument which will enhance what is al-
ready in place.
The Community College Presidents posed several questions
which could not be properly answered. Mr. Klaich requested
that the discussion be deferred until UNR's Orvis School of
Nursing's Dean Sidney Krampitz was available for question-
ing.
- - - - - -
Dean Sidney Krampitz, Orvis School of Nursing, explained
the proposal on Nursing articulation. She stated that it
was possible for a two-year Nursing Student to transfer
from a Community College to the Nursing program at UNR and
be placed as a Senior in the program, although the Univer-
sity does have a core curriculum which must be met prior to
graduation from UNR. She suggested that the Community Col-
leges have lower division prerequisite courses offered so
that a student can be advised to take the appropriate
courses which not only would count towards their Associate
Degree, but also would be appropriate for the Nursing
courses at UNR as well as UNLV.
Dr. Derby questioned whether most of the transferred courses
would be Nursing courses when the student enters at the Sen-
ior level, and Dr. Krampitz replied that that was correct,
provided that the prerequisite courses needed to enter the
Nursing program are taken prior to the entrance. The trans-
ferring student would be taking the prerequisite prior to
the Senior level just as the UNR students who take them pri-
or to admittance into the program. Dr. Derby stated that
one of the Board's concerns was that 64 credits can transfer
into the program, but, she questioned, how much more does
the Nursing program require before the transfer student can
receive a baccalaureate degree from UNR? Dr. Krampitz re-
plied that the School of Nursing has 61 hours of upper di-
vision credit, along with the Nursing challenge exams which
are taken at the end of each course and could accumulate a
total of 28 hours, leaving a difference between 28 credit
hours and 61 hours of upper division.
Dr. Derby questioned that once the Community College student
transfers into the UNR School of Nursing as a Senior, not as
a Junior, how many more units must be completed before she
can get the baccalaureate degree? Dr. Krampitz replied that
she would need the difference bwetween the 28 credit hours
and the 61 credit hours, which is 33 credit hours. The 28
credit hours which are received by taking the NLN exams are
for validating purposes of the lower division courses to
meet the upper division 64 hour requirement. The students
will most likely graduate with 140 hours, but they will not
be admitted to the Nursing program until they meet the same
prerequisites as the baccalaureate graduates, i. e., mathe-
matics, sciences and liberal arts.
Mrs. Sparks questioned whether UNR accepts all Nursing cred-
its, and commented that there is not an automatic articu-
lation flow from all the Nursing courses at the Community
Colleges. Dr. Krampitz explained that 28 credit hours
would be accepted by successful completion of the NLN
challenge exams. UNR will accept the difference of those
credits once the student finishes all the prerequisites to
Nursing. Dr. Krampitz felt that there would probably not
be any repetition of credits. The student will be getting
28 credit and she will have to take another 20-24 hours of
liberal arts, science, mathematics, which will leave the
student with about 4 hours of miscellaneous.
President Gwaltney understood the situation in which the
students could take the science and math and other courses,
however, the cap would not be removed on transfers of the 64
hours, so when they have concluded their Associate Degree,
technically the student could then have at least 80 hours
left to graduate, which is an additional 40 hours. Dr.
Krampitz stated that a student may possibly have 140 hours,
but she could take in her Associate Degree programs other
courses instead of Math 101 or 105, or could take a course
that will meet the needs of both Community College and Uni-
versity programs, which will decrease the number of hours
the student will need. She strongly suggested that there
needs to be a good advisement to the students and that there
is a need to work together so that students will have the
opportunity to take such courses that meet both criteria at
the Community Colleges and the Universities.
In reference to the NLN challenge exams, Dr. Gwaltney ques-
tioned whether students from both the Community Colleges and
the Universities would take the same exam with the same
scoring process. Dr. Krampitz stated that this is something
that should be worked out between all the Campuses and that
a State policy be developed. NLN does not have a set score,
so it is the System's decision on how to set the scoring
criteria. She suggested that the Institutions give the
tests a couple of times and then have the Nursing Directors
compile the test results and draw a conclusion as to what
should be instituted throughout the System.
Dr. Krampitz stated that there are several different ways
to articulate Nursing courses as guided by NLN accredita-
tion: 1) basic testing, such as teacher-made tests; 2)
standardized tests, which are prepared for the course and
the NLN program exams; or 3) for the System to work together
and put all courses in the same conceptual framework, same
number of credit hours, same number clinical hours, etc.
There will be some limitations, of course, because of the
resources which vary across the State. She stated that
she was not sure the System wanted a standard curriculum,
which is what we are talking about, but it could be done.
Dr. Hammargren questioned why a standard curriculum is
wrong, and Dr. Krampitz stated that a standard curriculum
would be fine, but that there has been developed very dif-
ferent conceptual frameworks for several progrms. It is
not impossible to have a standard curriculum, however, it
would take about 3-4 years to establish by looking at time,
energy, resources, basic science requirements, and core
requirements.
President Meacham stated that CCCC's Nursing curriculum is
compatible to UNLV's Nursing program. At this time, there
are not a number of articulation problems between the two
programs, and he is hopeful that a new solution will not
cause more problems.
Dr. Krampitz stated that the Nursing faculty will need to
develop their own testing methods for the courses they
teach. The NLN testing is a more general test and tests
to see if the student is within the usual kind of exper-
iences and performance across the country. There is a $5
fee on each NLN exam. By utilizing the NLN exams, the
System is creating a situation to validate why the Univer-
sities are transferring Community College students to an
upper division level and giving the students the credit
by exam.
Mrs. Sparks stated that she did not feel comfortable in
applying the NLN test until it was discussed and agreed
upon systemwide. It would simply be creating a means of
selecting Nursing students. There needs to be some sym-
metry to what is happening between the Community Colleges
and the Universities. Mrs. Sparks stated that she does not
want to use the test results as a sole means of completing
the Nursing program. She would like some uniformity before
voting on this proposal and requested that this issue be
postponed until then. There needs to be understanding of
the results of the tests whether given in groups or individ-
ually and the difference between the Community College and
the Universities.
Dr. Krampitz explained that the only way to get the infor-
mation that is being requested is by administering the NLN
test throughout the System. By doing this the scores can
be established systemwide.
It was clarified that UNR and UNLV have very different
Nursing programs. UNLV still has a 2 + 2 program, whereas
UNR has never had that type of program. It will take much
effort to change UNR's program to a 2 + 2 program.
Chairman Gallagher asked if it would be acceptable to the
Regents to pass this proposal with the understanding that
there would be a standardized test score for the entire
System. Dr. Derby stated that the test scores are not the
only issue that requires additional information.
President Maxson stated that UNLV personnel were not parti-
cipants in the developing discussions. Nursing articulation
has always been a problem, more so in northern Nevada. He
stated that Dr. Krampitz has performed her job exactly as
the Board has requested her to do in developing a workable
solution that facilitates the articulation, yet maintains
the integrity of the program that she is obligated to main-
tain. President Maxson does not want UNLV's program to
change, because it is working. The UNLV students are pass-
ing above the national average (95-100% pass the national
test). He suggested that we not have uniformity in the
Nursing progrm around the State.
Chairman Gallagher stated that the situation we had before
was that people within the System could not easily transfer.
There is a better way of doing this within the System which
is what we have been trying for years to get, but all pro-
grams don't necessarily have to be exactly alike. But the
opportunity for students should be available within the Sys-
tem. She feels very strongly that a standardized test is
going to help us judge and measure quality of the students
and it is also good preparation for the State Board exams.
Mrs. Vernice Mathews, TMCC Director of Health Sciences,
stated that she would like further discussion with Dr.
Krampitz regarding this proposal and the NLN testing
process.
Chairman Gallagher requested Vice Chancellor Fox to meet
with the Nurses to discuss the proposal and report back
to the Board at the next meeting.
President Crowley suggested that the Academic Vice Presi-
dent be involved in these discussions with the Nurses and
Vice Chancellor Fox.
Chairman Gallagher requested that Vice Chancellor Fox meet
with both the Nursing representatives and the academic of-
ficers and report to the Board.
The open meeting recessed at 1:20 P.M. for Foundation meetings
to be held, and reconvened at 2:00 P.M. with all Regents present
except Regent Foley.
12. Approved UNS Capital Improvement Projects
Approved the following Capital Improvement Projects which
were presented to the Board by several representatives.
A. Northern Nevada Community College
President Remington introduced Mr. J. D. Long, Archi-
tect, who presented the architectural plans for the
proposed College Community Center. The building would
consist of approximately 12,000 square feet, and the
project construction costs would be $1,200,000. He
indicated that the bid process would begin on August 1,
1990, with breaking ground scheduled for September 24,
and the completion date scheduled for May 1, 1991.
Dr. Eardley moved approval of the architectural plans
for the NNCC College Community Center. Dr. Derby
seconded. Motion carried.
B. Clark County Community College
President Meacham introduced Mr. Orlando Sandoval,
Director of Physical Plant, who then introduced Mr.
Craig Galati and Ms. Denise Cook of Luccesi and Asso-
ciates. Mr. Galati presented the architectural plans
for the Health Education Center, Phase II project.
The building will consist of 54,800 square feet.
Dr. Hammargren questioned why there were two different
exterior materials used on the building and Mr. Galati
replied that by using the two different materials it
would provide additional classroom space while keeping
the project in line with the budget. Dr. Hammargren
requested that the building exterior be either all
masonery block or all stucco.
Mrs. Whitley moved approval of the architectural plans
for the CCCC Health Education Center, Phase II project.
Mrs. Berkley seconded.
Dr. Hammargren stated that according to the estimations
in using the two different materials given by Mr.
Galati, it would cost approximately $120,000 more to
change to one exterior material. President Meacham
stated that if CCCC were to go with one material, the
building would lose valuable classroom space. Mr.
Sandoval stated that if this change were made at this
point in time, it would cause major design changes on
the inside and outside of the building and would delay
the project.
Motion carried. Dr. Hammargren opposed.
C. University of Nevada, Reno
President Crowley introduced Mr. Jeff Lundahl, Archi-
tect, who presented the architectural plans for the
School of Journalism building at UNR. Mr. Lundahl stat-
ed that the building would consist of 37,000 square feet
at a cost of $4,260,000. The bid opening is scheduled
for January, 1991 and construction will begin in March,
1991.
Dr. Eardley moved approval of the architectural plans
for the UNR School of Journalism. Dr. Derby seconded.
Motion carried.
D. University of Nevada, Reno
President Crowley introduced Mr. Ron Mentgen, Architect,
who presented the architectural plans for the Engineer-
ing Lab Facility at UNR. Mr. Mentgen stated that the
UNR Motor Pool facility will be moved to the northern
end of the UNR Campus, and the new Engineering Lab fa-
cility will be built at the current Motor Pool site.
The building will include a bridge structures lab. The
cost of the building is $8 million. The bid opening is
scheduled for August 2, 1990, with completion date
scheduled for January, 1992.
Dean Jon Epps, College of Engineering, stated that the
College has raised approximately $1.8 million to date,
which will be applied to half of the equipment costs.
Dr. Hammargren moved approval of the architectural plans
for the UNR Engineering Lab Facility. Mr. Klaich sec-
onded. Motion carried.
13. Approved Emergency Item to Approve Loan, NNCC
Chancellor Dawson requested the Board to consider an emer-
gency item for NNCC to obtain a loan in order to have funds
to cover construction costs for their College Community
building. It is anticipated that the project will go to bid
prior to the regularly scheduled meeting in August.
Mr. Klaich moved approval to consider an emergency item for
NNCC to obtain a loan in order to have funds to cover con-
struction costs for their College Community building in
order to keep the project on schedule. Dr. Eardley second-
ed. Motion carried.
14. Approved Loan for College Community Building, NNCC
Approved the authorization to secure a loan in the amount of
$477,000 for a period of five years which will provide funds
to cover pledges on the NNCC College Community building.
Further, approved authorization to pledge Capital Improve-
ment Fee Funds for security of the loan.
Mr. Klaich moved approval to secure a loan in the amount of
$477,000 for a period of five years which will provide funds
to cover pledges on the NNCC College Community building, and
authorized to pledge Capital Improvement Fee Funds for sec-
urity for the loan. Dr. Eardley seconded. Motion carried.
Dr. Eardley left the meeting.
15. Approved School of Medicine Medicaid Program
President Crowley introduced Dr. Owen C. Peck, Executive
Director of Medicaid at the University of Nevada School of
Medicine, who provided a report on the expansion of the
Medicaid Program.
Chairman Gallagher reqlinquished the gavel to Vice Chairman
Sparks.
At the request of the State Budget Office, the School of
Medicine has agreed to expand its Medicaid Program to accept
an additional 7,000 recipients in Las Vegas.
In order to accommodate this increased patient load, the
Family Medicine Center in Las Vegas will recruit additional
medical staff and will expand its hours to include evenings
and weekends.
The State Budget Office has agreed to recommend funding of
$374,100 for 1990-91 which would provide funds for the addi-
tional physician and nursing staff required.
Medicaid Program in Las Vegas
1990-91 Budget
Fte Amount
Faculty 1.50 $150,000
Nurse Practitioners 2.00 100,000
Fringe Benefits 39,180
Total Faculty $289,180
Nurse 1.00 $ 30,000
Fringe Benefits 8,820
Total Staff $ 38,820
Malpractice Insurance $ 46,100
Total $374,100
Mr. Klaich stated that he had a difficult time in accepting
budget items ouside of the established budget process.
President Crowley explained that during the closing days of
the last legislative session there was no funding for this
program, although the Legislature requested the School of
Medicine to seek funding through the Interim Finance Com-
mittee for this program to accommodate an additional 7,000
recipients.
Dr. Peck explained that the School of Medicine accepted
3,500 recipients which saved the State of Nevada $1 million
during the last year. He stated that as long as the State
wanted the School of Medicine to operate the Medicaid Pro-
gram, funding will be included in the budget.
President Crowley stated that this program will continue to
grow, and our willingness to enter into the agreement was
for the educational experience it would lend to the School
of Medicine.
Mrs. Whitley moved approval to seek funding from the Interim
Finance Committee in the amount of $374,000 for 1990-91
which would provide funds for the School of Medicine Medi-
caid program in Las Vegas. Mr. Klaich seconded. Motion
carried.
Mrs. Sparks recommended that the School of Medicine seek
other avenues in obtaining funding for this program, in
that it took away funding from other Campus programs
throughout UNS. President Crowley stated that UNR would
prepare a briefing paper to be presented to the Board of
Regents.
Chairman Gallagher returned and resumed the gavel.
16. Approved Wolf Unitrust, UNR
Approved the recommendation by President Crowley for the
Wolf Unitrust, as provided by the terms of the donor, to
be used as scholarship money for minority students who
attend UNR. Ms. Harriet Wolf died April 26, 1990, and
approximately $202,014.40 has been left for the benefit of
the University of Nevada, Reno.
Mrs. Sparks moved approval to use the Wolf Unitrust for
scholarship money for minority students who attend UNR.
Mrs. Whitley seconded. Motion carried.
The open meeting recessed at 4:05 P.M. and reconvened in a Re-
gents' Workshop Session Friday, June 29, 1990, with all Regents
present except Regents Hammargren and Whitley.
17. Regents' Workshop
The Board met in a Workshop Session in Fireside Room, Donald
Moyer Student Union, University of Nevada, Las Vegas.
A. A report, "A Nevada Profile: Student Demand and Re-
sources for Higher Education" was compiled by the Chan-
cellor's Office which contains selected statistics that
provide a profile of higher education in Nevada. The
State's current demand for higher education and future
growth of higher education are described, and Nevada's
funding of higher education is compared with other
States. Because UNS is the fastest growing University
System in the nation, UNS and the State of Nevada face
special challenges to serve increasing numbers of stu-
dents and to provide increasing financial support for
higher education.
The report compares Nevada to other states in the union
to display our relative rank and our degree of compet-
tiveness with other Western states. The report high-
lighted the following:
Nevada post-secondary education, including UNS, led
the nation in the rate of enrollment growth during
the last decade.
Nevada ranks 7th nationally in the percent of popu-
lation with at least 4 years of high school exper-
ience.
Nevada ranks 34th in the nation in the percent of
population with 4 years of College experience.
If UNS enrollment increases at a rate of 5% per
year until the year 2000, over 100,000 students
will be enrolled.
Nevada has the second-highest tax capacity in the
nation, which indicates how much money the State
could raise if all states applied identical tax
rates to their respective economic bases.
Nevada ranks 50th in the nation in terms of tax
effort, which refers to the amount of State and
local tax revenue collected as a percentage of
State and local tax capacity.
Mrs. Kim Harris, Research Analyst, explained several
issues and tables that are contained in the report,
which is filed in the Regents' Office. Discussion and
clarification of the tables was held.
B. In working with Regent Foley, the UNS ad hoc Committee
on Student Retention identified retention issues and
suggested recommendations. Representing six UNS Campus-
es, the Committee was charged with examining student
retention and Campus graduation rates. The Committee
has defined comparable measures of retention/attrition
for UNS Universities, and for Community Colleges, and
Campus retention plans and budgets for possible suggest-
ed future retention activities have been developed. A
report, Student Retention and Attrition within the Uni-
versity of Nevada System, was distributed and is filed
in the Regents' Office.
Dr. Robert Ackerman, UNLV Vice President for Student
Services and member of the Committee, stated that col-
lection of data is among the six Campuses. Some of the
reasons for attrition nationwide include academic bore-
dom, irrelevancy of the class subject, a need for clear
definitions of the Campus, academic unpreparedness,
transition difficulties, and institutional incompati-
bilities. Dr. Ackerman stated that the New Student
Orientation Programs are a great service to new stu-
dents. The program gives the new student a sense of
support when arriving on the Campus.
President Maxson stated that the national drop out rate
in higher education is 30%, and that UNR's rate is 37%
and UNLV's rate is 38.5%. There is a decrease in drop
out rates for full-time students, and he added that the
economy also affects the drop out rate. He explained
that when the economy is down, there are more students
attending College. President Maxson stated that there
is a great need for additional counselors, support
positions, residential life employees, and intramural
directors.
Mr. Stan Aiazzi, NNCC Dean of Student Services and mem-
ber of the Committee, stated the concerns at the Com-
munity College level. Many of the students are older
students (55% are over 35 years of age), although the
traditional students are being attracted to the Com-
munity Colleges. The Community Colleges maintain an
"open door" policy. He stated that all the Community
Colleges have orientation skills assessments for English
and Mathematics, mentor programs, and they also offer
advising and counseling, including career counseling.
He pointed out that these programs need additional fund-
ing and support to be totally effective for the Commu-
nity College population.
President Meacham commented that general faculty also
counsel students and that faculty have many functions
other than teaching. These added functions should be
addressed.
CCCC Faculty Senate Chairman Alan Balboni stated that
UNS should look at students' goals. There are several
reasons why students attend Community Colleges. If this
were addressed, then maybe the retention rate would in-
crease.
Mr. Klaich requested the UNS ad hoc Committee on Student
Retention to do a follow-up of whether UNS is reaching
students and attracting them to higher education in
Nevada.
Mr. Kenneth Koester, member of the Nevada State Board
of Education, stated that they are concerned about
students going on to higher education in Nevada. He
felt that there needs to be a focused and continued
program in training faculty in the classroom to better
aid students.
Mr. Foley questioned what happens after the student
leaves College in regard to the programs in which UNS
offers -- did the student learn from the courses and
is the knowledge being utilized after College?
Dr. Patricia Miltenberger, UNR Vice President for Stu-
dent Services, stated that UNS needs to work with public
education on how UNS can be successful in attracting
students. There needs to be a review of the admission
standards and whether the orientation program, as well
as others, should be voluntary or mandatory for new
students.
Chairman Gallagher commended the ad hoc Committee on
the report and appreciated the work that has been put
forth. She requested that the Committee continue its
efforts through the Academic Affairs Committee.
The open meeting reconvened at 10:20 A.M., Friday, June 29, 1990,
with all Regents present except Regent Whitley.
18. Discussion on Definition of Part-Time Faculty, Community
Colleges
Discussion was held regarding the part-time faculty for Com-
munity Colleges as found in Title 4, Chapter 3, with the
proposed change as follows:
For teaching faculty, part-time be defined as 10
credits or less.
For non-teaching, part-time be defined as a combina-
tion of non-teaching plus teaching equaling less than
10. For this purpose two hours of non-teaching work
equates to one credit hour.
Dr. Eardley moved approval of the proposed changes regard-
ing the definition of part-time faculty for Community
Colleges. Mrs. Sparks seconded.
Dr. Derby questioned the purpose in changing the definition
and Chancellor Dawson explained that an employee who works
over 50% must receive benefits according to the Federal
government. This change would clarify the policy.
Mr. Foley left the meeting.
President Gwaltney explained that faculty donate additional
time and commitment to the College, i. e., serving on com-
mittees. This time is not calculated into the hours. In
addition, Dr. Eardley stated that faculty spend additional
time preparing for class.
Mrs. Whitley return to the meeting.
Dr. Derby stated that a part-time person with three classes
also spends a great deal of time preparing for class. She
felt that this was putting quite a strain on the part-time
faculty.
Mrs. Sparks left the meeting.
TMCC Faculty Senate Chairman Paula Funkhouser stated that
the UNS Professional Compensation Committee has addressed
this issue and they are aware that part-time faculty re-
ceive low payment. She explained that the part-time faculty
do not perform half of the work load of a full-time faculty
member. She stated that the proposed language is trying to
equate a work load for both entities. The classes taught
will not define the load because of the number of hours
which vary with the different courses. UNS needs to become
more equitable towards part-time faculty. She pointed out
that in private industry it is the practice that when an
employee works half-time, he is to receive benefits, and
the question of concern is within the System, what is half-
time? UNS cannot equate seven and one-half credit hours as
half of a full-time work load and although ten credit hours
are really not half, the Campuses have agreed upon this
number to define part-time for teaching faculty.
CCCC Faculty Senate Chairman Alan Balboni stated that CCCC
is very much in favor of the proposed changes.
Chancellor Dawson stated that the faculty who teach Health
are usually teaching four-hour courses, which limits a part-
time faculty to one class. If the proposed changes are ap-
proved, then two classes could be taught.
Mr. Klaich felt that the issue has become a procedural prob-
lem and requested that the issue be tabled and addressed by
the Academic Affairs Committee, which will report back to
the Board on its findings.
Dr. Balboni stated that the issue should be addressed quick-
ly in order for the Campus to begin hiring new faculty for
the coming year.
Mrs. Sparks returned to the meeting.
President Gwaltney stated that he supported the proposed
language.
Mr. Klaich moved to table the discussion on the definition
of part-time faculty at the Community Colleges and to refer
the matter to the Academic Affairs Countil. Dr. Derby
seconded. Motion carried. Mrs. Whitley and Dr. Hammargren
opposed.
Mr. Klaich reiterated that the discussion is to be addressed
by the Academic Affairs Committee, which will report back to
the Board at the August meeting.
Mr. Foley returned to the meeting.
19. Approved Consultant Services, UNS
Approved to use up to $30,000 from the Regents' Special
Projects Fund to hire a consultant in the field of adding
alternative pension providers to the existing UNS retirement
program. The duties of the consultant would be twofold:
1) to assist staff in the development of a Request for
Proposal (RFP), and 2) to review the bids resulting from
the RFP.
The UNS Compensation Committee has recommended additional
alternative pension providers to the existing retirement
program. These are highly specialized fields and it is
felt UNS does not now have the expertise in-house to devel-
op the necessary RFP and properly review the bids.
Allowing for transferability of retirement programs is a
distinct advantage to the compensation package when re-
cruiting new faculty.
Mr. Klaich moved approval to use up to $30,000 from the
Regents' Special Projects funds to hire a consultant in
the field of adding alternative pension providers to the
existing UNS retirement program. Dr. Eardley seconded.
Motion carried.
20. Approved Student Conduct Code, UNLV
Approved the UNLV Student Conduct Code, as contained in
Ref. C, filed in the Regents' Office.
Dr. Eardley moved approval of the UNLV Student Conduct Code.
Mrs. Whitley seconded. Motion carried.
President Maxson stated that the Student Conduct Code does
conform with the CSUN Constitution as well as the Board of
Regents Handbook.
Dr. Hammargren questioned why the Student Athletic Code of
Conduct was not included in this document, and President
Maxson explained that the UNLV Student Conduct Code pertains
to all UNLV students and that the Student Athletic Code of
Conduct is distributed to all UNLV athletes. Dr. Hammargren
requested that the Student Athlete Code of Conduct be ref-
erenced in the Student Conduct Code.
The open meeting recessed at 10:55 A.M. in order for the Academic
Affairs Committee and the Audit Committee to meet simultaneously.
The open meeting reconvened at 11:15 A.M., Friday, June 29, 1990,
with all Regents present except Regents Berkley, Eardley, Foley
and Sparks.
21. Report on the Space Grant University Application
Dr. Hammargren reported on the Space Grant University Appli-
cation and the implications for the University of Nevada
System. He stated that this program is for certification
and enhancement of science technology for aerospace educa-
tion with NASA support. The proposal must be submitted by
October 29, 1990. UNS would need to sponsor matching funds
for this program.
Vice Chancellor Fox stated that it would cost $75,000 per
year to match the funding and that NASA would accept some
in-kind contributions. UNS is exploring other funding
sources as match for this proposal.
President Maxson stated that UNLV is interested in the
Grant and felt that DRI and the Community Colleges should
become involved in the proposal.
Chancellor Dawson suggested that the proposal be discussed
by the Academic Affairs Council, and its recommendation
forwarded to the Academic Affairs Committee, which will
then report back to the Board prior to the proposal date
of October 29, 1990.
Mrs. Whitley moved approval of the Space Grant University
Application. Dr. Derby seconded. Motion carried.
Vice Chancellor Fox announced that Dr. Lonnie Hammargren was the
recipient of the "Aerospace Education Award of the Year", for
his contributions to future astronauts.
22. Approved Easement, UNLV and DRI
Approved a grant of easement which is contingent upon the
partial vacation of the easement granted by the Board of Re-
gents for flood control along Tropicana Wash. This partial
vacation of the flood control easement has been previously
identified by the consultants to the architects employed by
the Public Works Board of the State of Nevada for design of
the Southern Nevada Science Center for the Desert Research
Institute. The granting of this easement is further condi-
tioned on the posting of a bond statisfactory to the Board
of Regents to ensure the construction of adequate capacity
in the electrical system to serve the needs of the Regents
and such construction of electrical system shall be under-
ground.
Mr. Klaich moved approval of the easement for flood control
along Tropicana Wash. Dr. Derby seconded. Motion carried.
23. Information Only: Community College Communication Flow
Charts
At the request of the Board, the Community Colleges sub-
mitted their communication flow charts as recommended in
the report of the ad hoc Committee on Community College
Faculty Relations. The following reference material is
filed in the Regents' Office:
CCCC, Ref. D-a
NNCC, Ref. D-b
TMCC, Ref. D-c
WNCC, Ref. D-d
President Meacham stated that there were no major changes in
the committees at CCCC. He mentioned that the Screening
Committee for New Hires has been strengthened for more in-
teraction with the committee and the candidates. The Master
Planning Committee has been restructured in order to provide
interaction with all other committees. The Evaluation and
Merit Committee has changed some of its mandates and will be
operational for the upcoming Fall semester.
President Remington stated that there were informal struc-
tural changes in that there are now three Deans at NNCC.
The Student Services area will now have the Learning Re-
source Center under its jurisdiction. He is hopeful that
the Budget Committee will become very active and helpful
in the budget process. The Evaluation Committee is in the
process of becoming a more formal procedure. The Admin-
istration Council will include students, Faculty Senate,
Administrative Council, and Deans. He stated that NNCC
Faculty Senate is feeling that the formal representation
will be an enhancement to the process.
President Gwaltney stated that the Faculty Senate Chairman
was added to the Budget Committee. The Administration
Evaluation Committee is evolving and becoming a more defi-
nite committee.
President Calabro reviewed the actions which have been
taken since the first flow chart was submitted to the
Board on February 22, 1990, as found in the reference
material. Upon questioning, President Calabro stated
that information will be disseminated to the faculty by
way of reports and the President plans to be more visible
in the rural areas.
TMCC Faculty Senate Chairman Paula Funkhouser stated that
the spirit of open communication from President Gwaltney
has veen very beneficial to the faculty, and she commended
President Gwaltney and his staff.
CCCC Faculty Senate Chairman Alan Balboni stated that he
was appreciative of the communication regarding recruit-
ment at CCCC.
24. Information Only: Outstanding Faculty Recognition
At the request of the Board of Regents, each Faculty Senate
Chairman or representative reported on the outstanding
faculty achievements from their respective Institutions.
Clark County Community College - Faculty Senate Chairman
Alan Balboni announced the following outstanding faculty:
Norma Suchy has been a major contributor to CCCC's
growth and development during the past ten years as a
faculty member and a teacher. Her election as Chairman
of the Faculty Senate for the past academic year was a
reflection of the high esteem in which she was, and is,
held by her peers. She has served on a number of com-
mittees and spends far beyond the minimally required
hours advising students. She has been an exemplary
faculty member.
University of Nevada, Las Vegas - Faculty Senate Chairman
Isabelle Emerson announced the following outstanding
faculty:
Penny S. Amy, Biological Sciences Department, has re-
ceived a three year grant from the Department of Energy
to investigate deep subsurface microbiology of the 450
M deep tunnel system in Rainier Mesa at the Nevada Test
Site. The grant was awarded to UNLV and DRI for the
interdisciplinary study of the hydrogeology and micro-
biology of potentially ancient organisms. The study
will provide basic ecological information that may help
to determine how best to use bioremediation (clean-up
by microorganisms) to eliminate toxic wastes below
ground, and it has potential for the identification of
microbes that produce important compounds for human
health.
Virko Baley received two prestigious awards at the 1990
Cannes Film Festival for his first film project. The
film, "Swan Lake, The Zone", received the Young Film
Critics Award for Best Foreign Film and the Internation-
al Critics Prize as the best film for all sections out-
side the official competition. Mr. Baley co-produced
and scored the film.
University of Nevada, Reno - Faculty Senate Chairman Richard
Brown announced the following outstanding faculty:
The following members of the UNR Faculty have written or
contributed to the writing of new books which are being
published by the University of Nevada Press during 1990:
Ann Ronald, Dean of the College of Arts and Science,
has contributed a forward to a collection of short
stories by Gerald W. Haslam, entitled "The Constant
Coyote: California Stories", published in May, 1990.
James Hulse, Professor of History, has produced a sixth
edition of his well-known textbook, "The Nevada Adven-
ture: A History", published in April, 1990.
Robert Laxalt, holder of the Distinguished Nevada Author
Chair in the Reynolds School of Journalism, has contri-
buted the text to accompany a volume of photographs by
Albert Allard, called "A Time We Knew: Images of Yes-
terday in the Basque Homeland", to be published in
November, 1990.
Linda White, Assistant Coordinator of the Basque Studies
Program, has written the "English-Basque Dictionary"
with Gorka Aulestia, to be published in December, 1990.
Northern Nevada Community College - Faculty Senate Chairman
Michael Mc Farlane announced the following outstanding
faculty:
Gail Barr has been a Chemistry Instructor on a part-time
basis for several years, doing an outstanding job. She
instructs students with a diversity of interests, in-
cluding Nursing, Mining, and University parallel trans-
fers. She had been excellent at getting all students in
these fields to understand what is expected. She also
has donated much time to stimulating interest in science
with younger students. She brings in groups of children
from 5th grade through junior high and provides demon-
strations that show how science can be fun and exciting.
Western Nevada Community College - President Calabro an-
nounced the following outstanding faculty:
Richard Riendeau is an excellent English and Reading
Instructor.
Bonnie York was awarded the Teacher of the Year in
Computing.
Anne Hansen, Public Information Officer, was awarded
third place in the nation for catalogs and received
the Paragon Award.
John Tylczak was awarded third place in the nation
for catalogs and received the Paragon Award.
Desert Research Institute - Faculty Senate Chairman Steve
Mizell announced the following outstanding faculty:
Dr. Randy Borys has been involved for over 18 years
with atmospheric chemistry, weather modification and
cloud physics studies which he conducts in the Sierra
Nevada and the Rocky Mountains. More than 30 presen-
tations at national and international meetings and 15
refereed scientific articles have resulted from his
research. Recently, he has been invited to serve a
3-year term on the American Meteorological Society's
Committee on Mountain Meteorology.
Truckee Meadows Community College - President Gwaltney
announced the following outstanding faculty:
Judith Colness designed a poster and received the
Paragon Award.
25. Information Only: Outstanding Student Recognition
At the request of the Board of Regents, each Student Govern-
ment Officer or representative reported on the outstanding
student achievements from their respective Institutions.
University of Nevada, Las Vegas - CSUN President Joe Bunin
announced the following outstanding student:
Mike Kennedy for his lobbying efforts, serving as Stu-
dent Affairs Director and CSUN Chief of Staff.
Desert Research Institute - Faculty Senate Chairman Steve
Mizell announced the following outstanding student:
Michael Nicholl was named recipient of the 1990-91
George Burke Maxey Fellowship. He was awarded the
Fellowship for his outstanding research proposal
titled, "Dynamic Analysis of Fluid Flow in a Single
Unsaturated Vertical Fracture". This research is the
subject of Mr. Nicholl's dissertation which he is pur-
suing through the Mackay School of Mines at UNR under
the supervision of Dr. Stephen Wheatcraft.
Clark County Community College - ASCC President Phil Morgan
announced the following outstanding student:
Lynn Byers for her publication, "Reflections".
26. Report and Recommendations of the Academic Affairs Committee
A report and recommendations of the Academic Affairs Commit-
tee meeting, held June 29, 1990, were made by Regent Jill
Derby, acting Chairman:
(1) Approved the relocation of the Computer Science Depart-
ment to the Mackay School of Mines at UNR. This pro-
gram was previously housed jointly in the Departments
of Mathematics and Electrical Engineering and Computer
Science at UNR. No additional costs or faculty will be
required.
Dr. William Cathey, Acting Vice President of Academic
Affairs, stated that the accreditation team suggested
that UNR consolidate all computer science programs
under one College. The faculty decided that the
School of Mines was the proper College for this con-
sideration.
(2) An annual report was presented by Vice Chancellor
Warren Fox on UNS programs holding special accredita-
tion and costs associated with such accreditation, as
contained in Ref. AA-2, filed in the Regents' Office.
Dr. Fox indicated that the costs associated with ac-
creditation were derived by such factors as faculty
time, consultant time, resources, and visitations
fees. Campus answers were not consistent, but they
have agreed on a format for future reporting efforts.
President Maxson informed the Committee that the Nurs-
ing program at UNLV is accredited. UNLV is in the
process of seeking accreditation for the Business pro-
gram. Business class size, especially in Accounting,
has grown so rapidly in the past that UNLV could not
hire faculty fast enough to keep up with the growth.
President Maxson stated that an accreditation team will
be visiting the Business program this Fall, and UNLV
will have the required faculty in place.
(3) Approved the Handbook change, Title 4, Chapter 16,
Section 19, Grades and Examinations, Satisfactory/
Fail Grading, as contained in Ref. AA-3, filed in the
Regents' Office.
Vice President of Academic Affairs John Unrue stated
that this Handbook change was recommended by the
Academic Standards Committee in order for the policy
to be more narrowly defined.
Mr. Klaich moved approval of the report and recommendations
of the Academic Affairs Committee. Mrs. Whitley seconded.
Motion carried.
27. Report and Recommendations of the Audit Committee
A report and recommendations of the Audit Committee meeting,
held June 29, 1990, were made by Regent June Whitley, Chair-
man.
(1) Senior Internal Auditor John Love presented the audit
of the UNR Child and Family Research Center, July 1,
1988 through June 30, 1989. The audit report is filed
in the Regents' Office.
(2) Senior Internal Auditor John Love presented the audit
of the UNR Undergraduate Admissions, Fall, 1989. The
audit report is filed in the Regents' Office.
(3) Senior Internal Auditor John Love presented the audit
of the UNLV Center for Business and Economic Research,
July 1, 1988 through June 30, 1989. The audit report
is filed in the Regents' Office.
(4) Senior Internal Auditor John Love presented the audit
of the Consolidated Students of the University of
Nevada, Las Vegas, July 1, 1988 through December 31,
1989. The audit report is filed in the Regents'
Office.
(5) Senior Internal Auditor John Love presented the audit
of the UNLV Library Department, July 1, 1988 through
October 31, 1989. The audit report is filed in the
Regents' Office.
(6) Senior Internal Auditor John Love presented the audit
of the TMCC Printing Services, July 1, 1988 through
October 31, 1989. The audit report is filed in the
Regents' Office.
(7) Senior Internal Auditor John Love presented the audit
of the CCCC Personnel Office, July 1, 1988 through
June 30, 1989. The audit report is filed in the
Regents' Office.
(8) Senior Internal Auditor John Love presented the audit
of the WNCC Publications and Graphic Arts, July 1,
1988 through October 31, 1989. The audit report is
filed in the Regents' Office.
(9) Senior Internal Auditor John Love presented the audit
of the WNCC Personnel, July 1, 1988 through October
31, 1989. The audit report is filed in the Regents'
Office.
(10) Information Only: Senior Internal Auditor John Love
presented the follow-up report on the UNR Library
audit. The follow-up report is filed in the Regents'
Office.
(11) Information Only: Senior Internal Auditor John Love
presented the follow-up report on the UNR Printing
Services audit. The follow-up report is filed in
the Regents' Office.
(12) Information Only: Senior Internal Auditor John Love
presented the follow-up report on the UNS University
of Nevada Press audit. The follow-up report is filed
in the Regents' Office.
(13) Information Only: Senior Internal Auditor John Love
presented the follow-up report on the CCCC Printing
Services audit. The follow-up report is filed in the
Regents' Office.
Dr. Eardley stated that he was pleased with the thorough
job which the Internal Auditing staff performs. President
Calabro stated that the Internal Audit recommendations are
very helpful.
Mr. Klaich moved approval of the report and recommendations
of the Audit Committee. Dr. Derby seconded. Motion car-
ried.
Chairman Gallagher relinquished gavel to Regent Daniel Klaich,
Chairman of the Investment Committee, which sat as a Committee
of the Whole.
28. Investment Committee
The Investment Committee, meeting as a Committee of the
Whole under the Chairmanship of Regent Klaich, acted as
follows:
Mr. Klaich stated for the record that in this discussion,
as in prior discussions of the Committee, the Chairman of
the Board, Dorothy Gallagher, had a conflict and would not
participate in any of the deliberations or voting on this
issue. All other Regents were present.
Mr. Klaich stated that at the May meeting of the Board one
of the reasons for the action taken was because a number
of the members felt that they did not have full information
on custodial banking services and the request for proposal
(RFP) which called for new custodial banking services.
(1) Information Only: Discussion of Custodial Banking
Services Guidelines - Mr. Klaich introduced Mr. Tom
Thomas, Valley Bank of Nevada, to discuss the current
UNS custodial banking services contract. Mr. Thomas
introduced other members of his staff: Mr. Mark
Bouchard, Vice President and Manager of the Custody
Department; Mr. John Shive, Trust Officer and Admin-
istrator of the University of Nevada System Account;
and General Counsel Mr. John Joseph. He related the
contract with UNS began in 1984 with a custody account
of possily $25 million, and that there has been one
fee reduction since that time which occurred in mid-
1988. At the time of the RFP in March, 1990, the cus-
tody account contained approximately $59 million in
assets. At that time, (1989) the annual fee was
$46,253. He stated that the RFP did contain a pre-
bid conference meeting on March 21, 1990, which Valley
Bank failed to attend. Mr. Thomas continued that im-
mediately thereafter, the bank approached the Purch-
asing Department of UNS to request any assistance and
other options to provide another competitive bid from
Valley Bank. Two options were given: (1) to request
and obtain permission from the other banks; and (2)
to change Valley Bank's existing contract fee to re-
flect those fees which they would have submitted in
a bid had they been so allowed. When the first op-
tion was not successful, they pursued the second, and
they submitted a new fee agreement to UNS in advance
of any discussions on the bids. However, this agree-
ment was never accepted by UNS.
Mr. Klaich stated for the record that copies of the
current Valley Bank contract, as amended, and the RFP,
had been distributed to all members of the Board prior
to this meeting.
Mr. Thomas asked Mr. Mark Bouchard to explain in gen-
eral terms the custody business. He began, stating
that custody assets are not assets of depository bank
operations or services, therefore, the size of an or-
ganization is not necessarily the important services
in the custody account. He related that by Federal
law, the assets are not leined upon by the creditors
of the commercial banking operation, which means there
is no risk to assets in the custody environment. He
continued that the services in the custody environment
are very basic even at a national sense; that the serv-
ice involved the maintaining of securities or holding
securities as agent on the client's behalf. The bank
handles the income collection responsibilities, which
means that the bank collects interest payments, for
those securities bearing interest, in accordance with
the terms of the agreement and/or wishes of the staff
or managers.
Mr. Bouchard stated that UNS is a multi-management
account, meaning that there are money managers who
should manage the assets of the UNS. The account is
also managed internally by Janet Mac Donald's staff on
what are called short-term cash positions inasmuch as
money managers place trades on a daily basis on behalf
of UNS. Those trades go through the trading environ-
ment at a national level, primarily through the deposi-
tory trust companies, the central focus point nation-
ally where most municipal bonds and stocks are held.
All banks are members of the Federal Reserve System of
New York or Los Angeles. Physical assets, such as
commercial paper and CDs, are acquired from time-to-
time either by the University or the money managers.
All of the banks have what are called correspondence
banking book which is a bank that handles physical
transactions that cannot be handled in Nevada for any
place other than New York City. The custody bank
(Valley) takes instructions from the money managers
and executes those actions by handling the cash and
the payments of securities when purchased on behalf
of the managers, or they deliver securities and col-
lect the cash. These transactions are very regulated
and controlled environments per contract. The cash
is credited or debited to the UNS account and proper
accounting is maintained daily and communicated to the
UNS Treasurer's staff. In situations where the Treas-
urer's Office buys or sells securities, the same holds
true, the only difference being, rather than using
electronic mechanism for the transaction, phone calls
are made. The checks and balances for such activity
is through notification in writing, as well as through
the electronics system.
Mr. Bouchard stated that outside of that, there is very
little that is "magical" about the custody business;
that all banks have basically the same products and
services with a few different "bells and whistles" from
bank to bank.
In answer to Mr. Foley's question, Mr. Bouchard stated
that Marine Midland is used by Valley Bank. Mr. Foley
then asked in whose name the UNS funds were deposited.
Mr. Bouchard replied that there is a Federal law gov-
erning this matter wherein that because of the elec-
tronic automation, that once a contract is entered into
with a name stated on the statement, that name must be
used for all the securities published on that statement
record. He related that in layman terms, the bank is
saying that the client owns all of those securities.
Mr. Bouchard stated that in answer to the question
specifically, Valley holds the securities in what they
call "nominee name", which is for easily trading, get-
ting away from the practice of 15 to 20 years ago where
every trade or sale had to be signed off by the auth-
orizing client, such as the Board of Regents. He con-
tinued that these transactions are reviewed and audited
both internally by Valley's organization, externally
by the Federal Reserve, and also by a third party, that
of Peat Marwick Mitchell, audits for asset positions
making sure that everything reported to clients is,
in fact, in order. Valley also has internal checks
and balances that maintain the integrity of their data.
Mr. Foley asked whether the nominee account is in the
name of Valley Bank. Mr. Bouchard replied that in New
York, the trading account is in the name of the Uni-
versity of Nevada System, since it is published that
way. The securities themselves, however, are in nom-
inee and are again used for trading purposes.
(2) Information Only: Discussion of Current UNS Custodial
Banking and Checking Service Policies - Mr. Klaich
related that at the Investment Advisory Staff Commit-
tee meeting in February, 1990, direction was given to
Janet Mac Donald to develop a Request for Proposal
(RFP), and asked Ms. Mac Donald to now discuss the
matter.
Ms. Mac Donald related that the staff began preparation
of the RFP about a year ago. We were anticipating tak-
ing advantage of major changes in custodial banking in
the last decade, only a few banks committed the large
capital required for technology to improve service.
Ms. Mac Donald reviewed these new services and includ-
ed them in the RFP. She outlined a few of these serv-
ices including having access to the custodial computer
information system directly to the personal computers
in her office so that the portfolio could be priced
at market value at any point in time, as well as to be
able to down-load the bank's database onto spread
sheet software in the Treasurer's Office. Currently,
this operation is done manually by re-keying the Valley
Bank statements into the Treasurer's personal comput-
ers. She stressed her need and responsibility to be
able to track activity and to be certain all UNS assets
are handled properly.
Another item of importance is to have financial state-
ments from the banks on each of the money managers
based on "trade day" and on "settlement day". Ms.
Mac Donald explained that once a manager sells a stock
it is out of his portfolio and no longer under consid-
eration, and so reports to her from managers are on a
"trade date basis". The Board of Regents, however,
considers settlement date of prime importance when the
security is transferred to the new owner and the cash
received.
Daily pricing of UNS securities is needed in order to
verify that Board guidelines are being enforced. Since
the establishment of a custodial account in 1984, UNS
has moved into more and more complex instruments: op-
tions, asset backed securities, futures, and foreign
markets. In order to manage these complex investments
we require specific technology. Additionally, Ms.
Mac Donald stated she was interested in security lend-
ing, but only if the bank could provide indemnifica-
tion against losses to UNS, which very few banks can
provide. Security lending is accomplished through the
custodial bank which lends them to brokers who might
sell a security not in their possession. When called
upon to deliver that security, they then borrow it
from someone and pay a fee, which can add from 10 to
30 basic points to the Board of Regents' total return.
Concerning the evaluation of bids, Ms. Mac Donald stat-
ed she called the UNS Controllers to sit as a review
committee inasmuch as they would be responsible for
UNS funds if there were not a UNS Treasurer. They
agreed to serve, and recommended that the RFP for
custodial services be handled by Business Center North.
Business Center South would handle the RFP for the UNS
checking account. She related that the review commit-
tee all signed non-disclosure statements wherein they
all agreed not to discuss the process with anyone oth-
er than committee members in order to protect the in-
tegrity of the process.
In response to a question from Mr. Klaich, Ms. Mac
Donald stated that Cambridge and Associates, UNS fin-
ancial advisors, provided her with a draft RFP and
numerous annual studies they conduct on custodial
banking, from which she learned of a number of the
changes occurring in the field.
Mr. Foley suggested that the Chancellor's Investment
Advisory Committee be added to the review committee
when bids are screened and that they be present when
a presenation is made to the Board. It was his feel-
ing that the Board should be more involved in the bid
process.
Mrs. Sparks wondered what other services are obtained
through the RFP and bid process by the Treasurer's
Office, with the answer being selection of money
managers, outside accounting services, and the check-
ing and custodial services. She then asked whether
in the past an interim committee had reviewed these
procedures or whether the decision had been made di-
rectly by the Board. Ms. Mac Donald explained that
six years ago when the custodial services were first
obtained by UNS, an RFP was used and Valley Bank was
the most responsive and responsible bidder. Prior
to that time banks were managing the assets, but they
also held them. The separation of those funds from
the managers was a major move for UNS as a protective
measure. There had not been an RFP for the checking
services.
Dr. Eardley clarified that in February (1990) the In-
vestment Advisory Committee had discussed custodial
banking and had instructed Ms. Mac Donald to proceed,
without giving her detailed instructions, and for her
to report the results to the Board, which she had done
at the May, 1990 meeting. At that time, Ms. Mac
Donald's report did include an explanation of the
process that was used, and which stated that the proc-
ess had followed guidelines and policies adopted by
the Board. He elicited from Ms. Mac Donald that there
were members from the southern Campuses on the review
committee, that Business Center North was chosen for
this process, that Business Center South would be used
for the checking services process, and that there was
no regional discrimination involved.
Mrs. Sparks questioned why Ms. Mac Donald had not re-
quested some of the new custodial services from Valley
Bank. Ms. Mac Donald explained that about a year ago
she and her assistant had spent two days at Valley Bank
in Las Vegas thoroughly reviewing their operations and
how they conducted their transactions and realized they
did not have the capabilities and are not currently
providing these services. Mrs. Sparks continued that,
knowing for a year these services were available, UNS
should have been updating current capabilities. Ms.
Mac Donald replied that she had listed the new services
that would be beneficial to UNS in the RFP.
In answer to Dr. Eardley's question concerning differ-
ences in services from various banks, Ms. Mac Donald
stated that all banks can do custodial work, but they
can't all do it at the same level because of the major
financial commitments some have made to upgrade tech-
nology to handle these changes.
(3) Reconsideration of Action on UNS Custodial Banking
Services - Mr. Klaich explained that several members
of the banking community were present and wished to
make statements prior to the Board proceeding to
Item 3.
Mr. Donald Snyder, President and CEO of First Inter-
state Bank, stated he had sent a letter to the members
of the Board of Regents expressing the bank's views of
the action taken at the May, 1990 Regents' meeting, and
then introduced Mr. Greg Titus, Vice President. Mr.
Titus commended Ms. Mac Donald and staff for conduct-
ing a very comprehensive and thorough evaluation proc-
ess of the bids which were submitted.
Mr. Titus stated that he felt the custodial business
was not as simple as Mr. Bouchard had portrayed, that
as portfolios become much larger the bank must incor-
porate the newer capabilities in order to maximize the
return for the client. He related that while FIB was
not the successful bidder, they did accept that Sec-
urity Pacific had submitted a very comprehensive and
beneficial proposal for UNS. He explained that a pre-
bid conference is very common and is, in fact, essen-
tial. It allows all those interested to share the
scope of the needs and requests of the client and
gives a "level playing field" on which bids are based.
The client, the current provider and prospective pro-
viders can question one another in an open forum to
glean what it takes to manage the account relationship
as requested in the RFP.
Mr. Titus stated that FIB's interest at this point is
to maintain the integrity of the bid process for fu-
ture UNS bids. He related that it is essential that
the banking community have confidence in the bidding
process before they participate in future bids. He
stated FIB would be amenable in this instance, in
order to assist resolution of the case at hand, to
waive the pre-bid conference rule, to allow the Valley
Bank proposal to be opened provided it was evaluated
under the same conditions as all other bids had been.
Mr. Lyle Knight, President and CEO of Security Pacific
Nevada, introduced Mr. John Whitmer, Senior Vice Pres-
ident who manages the Trust Department; Mr. Tom Bart-
lett, Senior Trust Officer; and, Mr. Brent Small, Gen-
eral Counsel. He stated that Security Pacific Bank is
a Nevada organization whose headquarters are in Las
Vegas, and that the bank is a member of the Security
Pacific family, which is the 5th largest banking in-
stitution in the United States and brings those re-
sources into play when doing business. He referred to
a letter sent to Regents approximately two weeks ago
stating his position concerning the action taken by
the Board at its May, 1990 meeting.
Mr. Knight stated pre-bid conferences are common and
Security Pacific participates in them all the time,
and explained they provide information to all inter-
ested in bidding. He related that Security Pacific
manages $200 billion in assets and are on the cutting
edge of technology and, in fact, have plans to rein-
vest approximately $13 million over the next fiscal
year in hardware and software to remain on that cut-
ting edge. He disagreed with the previous statement
that all banks and services are the same. He referred
to a bid, stating that the fee is not the only criteria
for judging bids. He related that Security Pacific and
First Interstate Bank are constantly in competition for
services across the country.
Mr. Knight stated that they are concerned about the
integrity of the process the University System was
using. He explained that he did not agree with the
offer made here by First Interstate Bank, that of
waiving the pre-bid conference for Valley Bank. He
referred to Nevada having attracted the largest banks
in the nation to the State, and urged that by follow-
ing the bid procedures as originally specified it pro-
vided a statement to all business of the integrity of
those procedures.
Mr. Tom Thomas, Valley Bank, reiterated that they are
an $8 billion dollar organization and handle four major
accounts, which when combined, total in excess of $400
million. He accepted First Interstate's proposal of
opening the Valley Bank to bid, and offered that they
would also be amenable to having the other bidders
change their proposals if they so wished.
Dr. Hammargren questioned why Valley Bank so badly
wants this bid. Mr. Thomas replied that they never
submit a bid to "lose money on the contract". He ex-
plained that it is easier for Valley Bank to provide
the services as they have been provided in the past
but at a lower level because they are locally based
and, therefore, the cost of doing business in Nevada
is substantially lower than the cost for doing bus-
iness on the west or east cost. He stated that they
do price their fees according to the client, and do
take into account that educational institutions are
non-profit. Mr. Snyder, First Interstate Bank, stated
again that the process is the reason for their con-
tinued interest in the settlement of this issue. Mr.
Knight agreed, that the issue is that of the princi-
pal involved.
Mr. Foley referred to the letter which accompanied the
RFP which stated that the University has the right to
reject all proposals, and the same language is contain-
ed in the contract. Mr. Knight stated he had respond-
ed to that question in his letter and added that he
does not feel there is reason to reject all bids be-
cause one bank did not attend the pre-bid conference.
Mr. Snyder agreed.
Mr. Foley referred to confidential advice given by
"the Chancellor's lawyer" that there was a threat of
a law suit by the banks (Note: The confidential memo
from Mr. Klasic had been quoted in the newspaper that
morning). He referred to the provisions of the UNS
Code which discusses the responsibility of the Board
in fiduciary matters, stating that these matters in
his opinion could not be delegated.
Dr. Derby asked Mr. Knight to clarify how the pre-bid
conference offers protection against allegations. Mr.
Knight replied that if all parties concerned, the
client, the holder of the current contract and the
prospective bidders are present, when all have the
same opportunity in gatherine information prior to
the bid.
Mr. Snyder stressed that there is a "duty" of the
existing bank holding the current contract to be pres-
sent to provide information with regard to the serv-
ices being performed.
Mr. Thomas stated that Valley Bank only holds $60 mil-
lion of UNS funds and that the discussion centered
around $200 million, but he assumed the rest of the
funds were presently housed with Security Pacific.
He reiterated that Valley Bank is only discussing the
$60 million in the custody account. Mr. Collins stated
that Security Pacific does indeed have approximately a
$30 million operating fund account and that he felt it
was UNS intention to consolidate their funds as it was
stated in the RFP. He stated that there is a differ-
ence in sophistication of the handling of these two
accounts and that is why they had not been addressed
separately. Mr. Klaich stated that it was his under-
standing that the two accounts were to be merged as
called for in the RFP proposal, and that although the
discussions have indicated this is now a pooled ac-
count, it is not, it is a bifurcated account.
Mr. Hammargren moved to table all discussion until
there was clarification as to the amount and distri-
bution of the funds. Mr. Foley seconded.
Dr. Hammargren amended the motion to table any action
the Board might take, but that discussion should con-
tinue in order to gather more information.
Mrs. Sparks announced that inasmuch as she was not
aware that accounts were currently separated, and that
she did not know the exact amount of the funds under
discussion, that she would have to abstain from voting.
Mrs. Berkley stated that she had studied the issue at
great length, had studied the confidential brief from
General Counsel Donald Klasic, and that with her under-
standing that staff had precisely followed the Board
of Regents guidelines, and, although not agreeing with
those guidelines, she would vote to rescind the action
of the Board at its May meeting, and vote to award the
bid to Security Pacific Bank based on the need for
public trust and confidence in Board decisions. She
urged the guidelines be reviewed prior to another bid
process.
Mr. Klaich stated he had authorized Janet Mac Donald
to leave the meeting, but felt that the amount of the
fund was not the question, that it was a "red herring",
and the issue was the awarding of the best contract to
the lowest and most responsive bidder. He urged the
Board not to "duck the issue" before them and postpone
action for another month or so, and was, therefore,
speaking against the motion.
Dr. Eardley questioned why First Interstate Bank was
now changing their position to allow Valley Bank to
enter the proceedings. Mr. Titus explained that they
were not changing their position, only offering a com-
promise to help restore confidence in the bidding proc-
ess.
Mr. Klaich clarified that the motion to table would end
the meeting.
Motion failed on roll call vote. Voting no: Berkley,
Derby, Eardley, Klaich. Voting yea: Foley, Sparks,
Hammargren, Whitley.
Mr. Klaich explained that Item 3 of the agenda was now
open for discussion.
Mr. Foley moved not to reconsider the action of the
Board at the May 17-18, 1990 meeting. Mrs. Whitley
seconded.
The Chairman declared the motion to be that of non-
action of the Board and not in order.
Mrs. Berkley moved to rescind the action of the Board
at its May 17-18, 1990 meeting wherein the Board moved
to reject all bids. Dr. Eardley seconded. The motion
carried on roll call vote. Voting no: Foley and
Hammargren. Voting yea: Berkley, Derby, Eardley,
Whitley, Klaich. Abstain: Sparks.
Dr. Hammargren stated his reason for voting no was
that he did not feel that anyone really understood
the implications of the vote.
Dr. Eardley moved to award the custodial bank bid to
Security Pacific Bank as proposed on recommendation of
staff. Dr. Derby seconded. Motion failed on roll
call vote. Voting No: Foley, Hammargren, Sparks,
Whitley. Voting yea: Berkley, Derby, Eardley, Klaich.
After a recess, the meeting continued with Mr. Klaich
stating he apologized to those in attendance for send-
ing Ms. Mac Donald back to Reno.
Chancellor Dawson reported that although the precise
amounts were not available at this instant, the UNS
funds are distributed approximately $60 million to
Valley Bank Trust Department, approximately $30-35
million to Security Pacific in operating funds, and
the difference held by Valley Bank's Corporate Trust
Office for the refinancing of UNS bonds on the two
pavilions. These are held in trust to meet the debt
service on the original bonds as they become due. He
explained that those particular bonds have been re-
financed twice. Mr. Klaich assured the Committee that
a precise accounting would be made to the Board on
Monday.
Mrs. Whitley moved to open all bids received and eval-
uate them on the same criterion as previously used for
the other two banking institutions.
The Chairman asked General Counsel whether the Chairman
could second a motion. Upon advice from Counsel, the
Chairman stepped down, handing the gavel to Regent
Sparks.
Mr. Klaich seconded.
Mr. Klaich clarified for the Committee that the motion
states that the bid irregularity of Valley Bank in not
attending the meeting is waived, and that the bid be
opened and be referred to staff to be compared on the
same criterion as set forth for Security Pacific and
First Interstate.
Further discussion ensued on the news article referred
to earlier. Dr. Hammargren questioned Mr. Klasic
whether, in light of discussions at this meeting, he
had changed his opinion of whether UNS might be sued.
Mr. Klasic replied that it was his belief that the
statements made at this meeting were made in order to
"leave all options" open, but that in his discussions
with the banks' attorneys, they had indicated a suit
would be the very last resort and one they did not
want to take, but that nonetheless, he was left with
the impression that there was a distinct possibility
of a suit.
Motion carried on roll call vote. Voting no: Foley,
Eardley, Berkley. Voting yea: Derby, Hammargren,
Klaich, Whitley, Sparks.
Note: Filed in the permanent minutes is the memorandum
to the Board of the disposition of UNS funds.
The open meeting reconvened at 3:35 P.M., Friday, June 29, 1990,
with all Regents present.
29. Report and Recommendations of the Ad Hoc Committee on Health
Care
A report and recommendation of the ad hoc Committee on
Health Care meeting, held June 29, 1990, were made by Regent
Carolyn M. Sparks, Chairman.
(1) An overview of the meeting of the ad hoc Committee on
Health Care held on June 14 in Las Vegas was given, as
well as a general discussion of possible future budget
impacts of expanded health care programs.
During the June 14 meeting, Senator Ray Rawson provided
information relating to health care education and he
proposed funding from special accounts which would be
made available for health care activities at the var-
ious Campuses. The Committee requested additional in-
formation in this regard. Dr. Derby stated that she
interpreted Senator Rawson's statements to be that he
could suggest where funding could be raised, and that
he thought funds could be shifted within UNS's budget.
Dr. Warren Fox, Vice Chancellor for Academic Affairs,
stated that information is being gathered on health
care program costs and understood from the last meet-
ing that funding would be raised outside the normal
budget process. Dr. Fox informed the Committee that
this request for information has been delegated to
each of the Campus Academic Officers who will report
their findings to the Committee at its next meeting.
Mr. Foley stated that the Campus Presidents have dis-
cussed this and they did not want to commit funding
from their Campuses unless the funding was raised by
other sources. The Presidents are willing to help
the cause, but have Campus priorities that come before
health care education. Vice Chancellors Fox and Ron
Sparks will gather information for the next meeting.
(2) Dr. Thomas Cinque, Associate Dean of the School of
Medicine, reported that Federal funding for AHEC pro-
grams are being phased out, therefore the School of
Medicine is requesting State funding to be granted
for this worthwile program.
Mr. Klaich stated that although the AHEC program in
Nevada is an excellent program, he requested that fund-
ing for this program be included in the UNS funding
prioritization in the future. Vice Chancellor Sparks
stated that AHEC funding is not in the base budget at
this time. The deadline for requests was May 8, 1990,
and the AHEC request was not included. Mrs. Gallagher
stated that the Legislature supports this project, and
suggested that in the future the School of Medicine
might consider a separate Board to administer the proj-
ect. Dr. Cinque stated that across the country AHEC
projects are administered by independent Boards, but
through the medical schools. Mr. Klaich questioned if
this project should become a stand-alone program.
Chairman Sparks stated that until the School of Medi-
cine submits a request for funding to Vice Chancellor
Sparks, this discussion is for information only.
(3) Information Only: Chairman Sparks indicated that Dr.
Lonnie Hammargren had brought to the attention of the
Committee the decrease in numbers of Medical School
residents who remain in Nevada.
Dr. Cinque informed the Committee that the Obstetrics/
Gynecology residency program was filled, but that the
Internal Medicine residence program was having diffi-
culty in Nevada, but it has also experienced a down-
ward shift across the country. He stated that the
decline in Internal Medicine may be caused by the AIDS
virus, large debts for internists, and that the primary
care load falls onto internists, therefore doctors are
overworked and underpaid.
Dr. Cinque distributed a chart which summarized the
internal medicine first year positions offered and
filed by U. S. graduates in the NRMP Match since 1985.
The chart indicated that until 1989 all residence pos-
itions were filled by the end of the match, but this
year there was only one resident to be located in Las
Vegas. Therefore, the School of Medicine rescinded
its rules and allowed foreign students into the resi-
dency program.
Dr. Hammargren stated that there is a local deficiency
in residents returning to Nevada; out of 48 students
only 5 remained in Nevada residency programs.
Upon questioning, Dr. Cinque stated that in order to
retain residency programs in Nevada there needs to be
more efficient research facilities. He estimated that
a new research building would cost $11 million.
Dr. Hammargren suggested that the Board authorize the
School of Medicine to lease office space near the Uni-
versity Medical Center for teaching physicians.
Dr. Cinque related that the staff at the University
Medical Center has been very cooperative with the
School of Medicine in donating their time to teaching
residents. However, Dr. Hammargren stated that the
Chief of Staff at the University Medical Center has
indicated they will no longer provide free instruction
to the School of Medicine, but would provide teaching
staff as long as they were paid by the School of
Medicine.
Chairman Sparks requested further information be
brought before the Committee at its next meeting in
July regarding the number of graduates who return to
Nevada after their residency program is completed.
The meeting adjourned at 4:25 P.M.
Mary Lou Moser
Secretary of the Board
06-28-1990