06/28/1990

UCCSN Board of Regents' Meeting Minutes
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