August 10-11, 1979
BOARD OF REGENTS
UNIVERSITY OF NEVADA SYSTEM
August 10, 1979
The Board of Regents met on the above date in the Pine Audito-
rium, Travis Student Union, University of Nevada, Reno.
Members present: Mr. James L. Buchanan, II
Mr. Robert A. Cashell
Mrs. Lilly Fong
Mr. Chris Karamanos
Mrs. Molly F. Knudtsen
Dr. Louis E. Lombardi
Miss Brenda D. Mason
Mr. John R. Mc Bride
Mr. John Tom Ross
Others present: Chancellor Donald H. Baepler
President William Berg, NNCC
President Joseph N. Crowley, UNR
President Jack Davis, WNCC
President Judith Eaton, CCCC
President Leonard Goodall, UNLV
President Lloyd Smith, DRI
Secretary Bonnie M. Smotony
Also present were: Vice Chancellor Lessly, Vice Chancellor
Partridge, Vice Presidents Pine, Gorrell, Westfall, Glennen and
Dawson; Faculty Senate representatives Van Vactor, Marschall,
Jacobson, Mathewson, Christopher and Melrose; Student Association
representatives Campbell and Ritch.
The meeting was called to order by Chairman Cashell at 10:15 A.M.
1. Adoption of Consent Agenda
The Consent Agenda (identified as Ref. A and filed with
permanent minutes) containing the following items, was sub-
mitted for approval:
(1) Approval of minutes of the personnel session of June 8,
1979, and the regular meeting of June 29, 1979.
(2) Report of Gifts and Grants.
(3) Recommendation to concur with award by State Public
Works Board of a negotiated bid to Eagle Construction
for $53,409 for construction of a press box on the east
side of Mackay Stadium.
(4) Authorization to employ Grant A. Engstrom as a con-
sulting engineer for a project at Main Station Farm.
(5) Authorization for withdrawal of $12,115.94 from
Corporate Trusts held by FNB.
(6) Authorization to increase the $4,000 revolving fund
maintained at Nevada National Bank for DRI to $6,000.
(7) Change in signature authority on bank accounts main-
tained by UNLV to remove Controller Wayne Williams and
Brock Dixon, and to add President Goodall and Louis
(8) Augmentation, by allocation from Board of Regents
Special Projects Account, to bring the following
accounts to the levels indicated:
UNR Interview and Recruiting Account $10,000
DRI Interview and Recruiting Account 5,000
(9) Request for easement for an underground electrical
service to enable Sierra Pacific Power Company to pro-
vide power to existing feed mill on the Main Station
A question was raised concerning the accuracy of the minutes
of June 29, 1979, regarding the Board's action on the loan
to UNLV Marching Band, in that the minutes had reflected an
interest free loan of $55,000 with no repayment schedule.
It was the opinion of several Regents that a one-year repay-
ment schedule had been specified. It was agreed that the
minutes would be accepted with the stipulation that the
tapes of that discussion would be used to verify this one
point and any correction necessary would be made to accu-
rately reflect the Board's action on this point.
Mrs. Fong also requested that the minutes be amended to re-
flect her statement that $2,000 budgeted for stationery for
the Marching Band was excessive.
Mr. Buchanan moved approval of the Consent Agenda, with the
corrections to the minutes as reflected above. Motion sec-
onded by Dr. Lombardi, carried without dissent.
(Note to Minutes: The minutes of June 29, 1979, were in
error in regard to the Board's action on the loan to the
Marching Band. The correct motion, offered by Mr. Buchanan
and seconded by Mrs. Fong, was for an interest-free loan of
$55,000, to be repaid within one year. That motion carried
unanimously by roll call vote.)
2. Student Petition Regarding Preservation of the UNR Quad
President Crowley introduced Susan Horton of the UNR
History Club, who spoke in support of the following
We the undersigned, recommend the preservation of
Frandsen Humanities building, the old Journalism
building, the Mackay Mines Museum, and the Mechanical
Arts building, wherever preservation techniques can
be practically applied, and we recommend that where
this is not possible, that the architectural integrity
of the University be retained.
(Petition and Ms. Horton's remarks are on file in the office
of the Secretary.)
Chancellor Baepler recalled that when the Master Plan was
being developed, there was strong consideration given to the
ultimate demolition of some of the older buildings, but he
also noted that the Regents were very clear that the quality
and characteristics of the Quad should be maintained. He
noted that the issue has been addressed extensively and it
was his impression that the Regents were in full accord with
the wishes expressed in the petition.
President Crowley reported that the UNR Administration con-
curs with the sentiments expressed in the petition, noting
that there is no intention of demolishing any buildings
wherein such preservation techniques can be practicably
applied, except for the Mechanic Arts building which will
give way ultimately to the construction of the new Mackay
Mines building, adding that the new building will be con-
structed in such a way as to the insure the architectural
integrity of the Quad. He also commented on the plans to
preserve at least the facade of the present Mackay Mines
building, and to utilize it in such a way that the struc-
tural problems of the building would not endanger its
3. Report of Joint Subcommittee on Teaching Assistants, UNR
President Crowley noted inclusion with the agenda of a
report prepared by the Joint Subcommittee on Teaching
Assistants at UNR (identified as Ref. B and filed with
permanent minutes), and introduced Dr. John Marschall,
UNR Faculty Senate Chairman, who presented the following
A fraction of the University's graduate students are
Graduate Fellows (both men and women). Their fellow-
ships are awarded on the basis of a competitive re-
gional and/or national search. Unlike other graduate
students, the Fellow is a kind of apprentice scholar
engaged in part-time teaching or special research
under the supervision of a professor. The stipend
paid to most Graduate Fellows is, therefore, partially
a salary and partially a scholarship.
The more highly qualified Graduate Fellows we are able
to attract to the University directly affects the
quality and reputation of the program of which they
are a part. First-class Graduate Fellows help to
stimulate the productivity and performance of all grad-
uate students in a Department. In addition, by pro-
viding assistance in lab work, teaching, research or
working with a professor with large class loads in a
variety of ways, the Fellow enters a kind of novitiate
in the community of scholars, thus preparing him or
her for his future profession. Many current leaders
in the professions were once Graduate Fellows.
As you can see from the table on page 2 of the study,
the University of Nevada Fellows stipend is currently
$3800, which is considerably less than the average of
U. S. State Universities and even lower than that of
graduate students at institutions in states bordering
With the exception of Medical School residents, a
special case, the University of Nevada Graduate Fellows
receive no fringe benefits because the University does
not consider them employees, but the IRS does consider
most of them in the employee category for purposes of
taxation. The University has great difficulty com-
peting with neighboring institutions for the very best
Graduate Fellows available.
While there are several recommendations in this report,
several of which would touch on your jurisdictions,
there are others that require some internal work. We
are not, therefore, presenting this report to you for
any kind of action at this time. We have to do that
internal work first, before making any detailed pro-
posals to you. But we hope that by apprising you now
of the status -- and I might say, the plight -- of
both the University and the Graduate Fellow, it would
be helpful background for specific recommendations
which will be made to you in the not too distant
Hans-Juergen Sievert spoke on behalf of the UNR Graduate
Students Association, urging the Regents to look carefully
at the report and at the status of the graduate student as
recommendations concerning these students come before the
At the urging of Mrs. Fong, Mr. Jim Kitchen, UNLV Affirma-
tive Action Officer, spoke briefly concerning the report
filed by UNR, but noted that it had not been discussed to
any extent by personnel on that Campus.
4. Proposed Acquisition of Property, UNR
President Crowley recalled that the Board had previously
discussed plans for expansion of College Inn, which, he
noted, is contingent upon acquisition of three lots north
of the College Inn. He reported that these lots are now
available for purchase and he requested authorization to
use funds available from within various accounts at UNR to
negotiate for the purchase of Lots 4, 5 and 6, Block 3,
Anderson Addition, with such funds to be repaid from College
Mr. Ross moved approval. Motion seconded by Dr. Lombardi,
carried without dissent.
5. Proposed Lease of Mining Claim, Esmeralda County, Nevada
President Crowley presented a proposal for lease of a mining
claim in Esmeralda County to Falcon Explorations, which
presently owns or leases all other claims surrounding this
one. The proposal submitted by Falcon Explorations is for
five percent of the net smelter return, a lease of $250 a
year for twenty years with an option to renew for an addi-
tional 20 years, with an ultimate sale price of $250,000,
with smelter return and lease payments applied to the sale
Dr. Lombardi moved approval. Motion seconded by Mr.
Karamanos, carried with Mrs. Fong opposing because she
felt the lease price was not sufficient.
Mr. Buchanan reported that he had received an inquiry from a
Mr. George Jellea concerning possible lease of property in
the Gold Run Mining District in Humboldt County, and had
referred this inquiry to Chancellor Baepler. It was agreed
that Vice President Pine would pursue this matter with the
(Note to Minutes: It has been determined that this inquiry
concerned the Adelaide Mine, jointly owned by UNR and Mrs.
In response to a question from Mrs. Fong concerning the Uni-
versity's obligation to engage in competitive bidding for
the lease just approved, Mr. Lessly stated that there is no
provision in law that the University must go through a pub-
lic bidding procedure in that the Board is a constitutional
body and is not covered by State statute. He did note, how-
ever, that approval of this lease without competitive bidd-
ing constitutes an exception to Board policy, but suggested
that it is justified by virtue of the fact that the property
is already surrounded and it would be difficult to envision
there being another bidder.
6. Proposal for Lease of Additional Clinical Space for Medical
President Crowley recalled that in June the Board authoriz-
ed the School of Medical Sciences to lease space in a new
building being constructed on Mill Street near the Washoe
Medical Center, to be used for clinical teaching activities
of the Departments of Medicine and Pediatrics.
Dr. Crowley requested authorization to lease up to 1,700
additional square feet in this facility, to provide office
space for Dr. George Furman, Chief of Obstetrics, at a cost
of $1 per square foot. He noted that Dr. Furman has agreed
to pay for half the space, with the other half to be sub-
leased, hopefully to another staff member of the Medical
School under similar arrangements to that described for Dr.
Furman. Chancellor Baepler recommended approval.
Mr. Buchanan moved approval. Motion seconded by Mr.
Lombardi, carried without dissent.
7. Proposed Lease of Portion of Main Station Farm
President Crowley requested authorization to offer for
lease, for a period of 40 years with an option to renew for
an additional 40 years, a parcel of land consisting of ap-
proximately 56 acres located at the northwest corner of Mill
Street and Boynton Lane. (Description of property identi-
fied as Ref. D and filed with permanent minutes.) Dr.
Crowley recalled that in December, 1978 the Board had ap-
proved specifications for such a lease bid, with the under-
standing that authorization to proceed with advertising for
bids would be requested at such time as the status of the
Gund Ranch became clear, noting that until recently there
had been some question concerning the acquisition of the
8,000 acres of BLM property from the Federal government
because of the possible application of provisions of the
Wilderness Act. The BLM property has now been transferred
and there is a need for money for development, fencing and
water system improvements. President Crowley recalled that
the parcel of land to be offered for lease was identified
as Parcel #3 in a previous offer made by the Board in 1978;
however, this present offer will not include the 3.0 acres
upon which the Veterinary Science Facility is located, nor
does it include water rights that are, or have been, used
on the parcel for irrigation purposes. The bid documents,
as prepared by Counsel and approved by the Board in Decem-
ber, also state that no real estate commission will be paid
by the Board of Regents to any real estate firm, broker,
salesman or agent for the lease of this land. Chancellor
Baepler recommended approval.
Mrs. Knudtsen moved approval. Motion seconded by Mr.
Mr. Lessly asked that the motion also include authorization
for Counsel to make whatever editorial changes necessary to
the bid document which, he noted, had already been approved
by the Board, adding that such changes will not affect the
terms whatsoever, but will only be those changes necessary
for clarification of the document.
Mrs. Knudtsen and Mr. Karamanos agreed to the amendment to
the motion requested by Counsel.
Mr. Ross suggested that the documents be submitted to the
Board again for review after they are finalized. Mr. Lessly
agreed that the lease would come back to the Board when a
successful bidder had been identified, at which time the
Board and the Governor would be asked to approve the lease.
Mr. Ross and Mrs. Fong both expressed concern that the pro-
posed lease provided for a 40-year term, with option to re-
new for an additional 40-year term.
Motion carried with Mr. Ross abstaining and Mrs. Fong
8. Request for Allocation from Board of Regents Special
President Crowley recalled that in 1977 the Board of Regents
established, by allocation of $50,000 from the Board of
Regents Special Projects Account, a Regents' Equalization
Fund for Rural Programs, to provide a special subsidy for
courses offered in the rural areas by the two Universities.
It was agreed that if the program proved successful, efforts
to secure State funding would be renewed in 1979. Requests
for reimbursement from this fund during the past two years
have been approved by the Chancellor in accordance with the
regulations established at the time the fund was provided.
Dr. Crowley reported that in April, 1979, an Estimative
Budget was prepared and submitted by UNR for a projected ex-
penditure of $11,435 from this account. The estimates were
based on increased demand for courses experienced over the
period of the Fund's existence. The programs actually cost
$11,676; however, upon seeking reimbursement in June, it was
determined that other demands upon the fund had reduced it
to $7,126, leaving a shortfall of $4,550.
President Crowley requested that this shortfall in reim-
bursement to UNR be provided by allocation of $4,500 from
the Board of Regents Special Projects Account.
Mrs. Knudtsen moved approval. Motion seconded by Miss
Mason, carried without dissent.
9. Selection of Site, Henderson Campus of CCCC
Chancellor Baepler reported that the 1979 Legislature had
appropriated $1,924,800 for construction of a Community Col-
lege facility at Henderson and the State Public Works Board
had requested action by the Board of Regents to designate a
site for that facility. He recalled that in June, 1977 the
Board of Regents had accepted an offer from the City of
Henderson of 80 acres for eventual use by the University
for Community College facilities, at a cost of $6,400, with
the understanding that the City would spend a like amount of
money on improvements to the property, and with the under-
standing that should construction of such facilities not
commence within five years, the property would revert. A
description of the property was included with the agenda
(identified as Ref. E and filed with permanent minutes).
Chancellor Baepler noted that it was his understanding that
President Eaton concurred with the recommendation that the
Henderson Campus of CCCC be located on the 80 acres des-
cribed in the reference.
Mr. Buchanan moved approval. Motion seconded by Mrs. Fong.
President Eaton agreed that based upon the studies that have
been done and previous investigations, this site appeared to
be the best suited to meet the needs of the kinds of con-
struction anticipated for the College.
Mr. Buchanan recalled the earlier discussions concerning
this property, and stated that although it was not reflected
in the minutes, he believed that it was the intent of the
Board at the time the offer from the City of Henderson was
accepted that this would be the eventual site of a Community
College facility if one were to be placed in Henderson.
Chancellor Baepler agreed, stating that this was his inter-
pretation of the record, adding that the matter was on the
agenda simply for clarification.
Motion carried without dissent.
It was agreed that a tour of the site would be arranged for
the Regents in conjunction with its meeting in September.
10. Bid Opening, Phase IV, WNCC/South
Chancellor Baepler reported that the State Public Works
Board will be opening bids on August 23 for construction of
Phase IV of WNCC/South. Since the next regular meeting of
the Board of Regents is not scheduled until September 21,
Chancellor Baepler requested that authority be delegated to
the Administration to review and concur in the State Public
Works Board's recommendation for award of a contract, in
order that such award not be unnecessarily delayed by the
time lapse. A report of action taken will be included on
the September agenda.
Mr. Ross moved approval. Motion seconded by Mr. Karamanos,
carried without dissent.
11. Bid Opening, Dickinson Library Addition, UNLV
President Goodall reported that bids were opened by the
State Public Works Board on July 12, for the addition to the
Dickinson Library, with the following results:
Base Bid A*
Smith Universal $6,131,455 .726
Zuni Construction Co. 5,941,000 .70
Sletten Construction Co. 6,030,000 .74
Tiberti Construction Co. 6,184,000 .75
* Price quoted is per lineal inch of shelving.
President Goodall noted that all bids exceed the construc-
tion budget of $5,481,000 for this project and the State
Public Works Board had negotiated with the low bidder, Zuni
Construction, for a contract in the amount of $5,480,018,
which is within the budget. He recommended that the Board
concur in the proposed award of a negotiated contract by the
State Public Works Board to Zuni Construction. Chancellor
Mrs. Fong moved approval. Motion seconded by Mr. Buchanan,
carried without dissent.
12. Proposal for Funding of Radio Station Equipment, UNLV
President Goodall recalled that in June the Board had au-
thorized CSUN to proceed with purchase or lease of equip-
ment for the radio station, with proposals for financing to
be brought back to the August Board meeting. Accordingly,
President Goodall requested approval of a loan to CSUN of
$95,000 from the proceeds of the sale of the Hall Property,
to be repaid over a three year period, and to bear the same
interest the account would earn if otherwise invested. Dr.
Goodall recalled that the Hall Property had been a gift to
the University with the stipulation that interest earned
from the proceeds of its sale be used for the College of
Mr. Mc Bride moved approval. Motion seconded by Mrs. Fong,
carried without dissent.
13. Request for Funding of Presidential Inauguration Expenses
Chancellor Baepler requested an allocation of $15,000 from
the Board of Regents Special Projects Account to provide
$5,000 each to UNR and UNLV to cover expenses of a Presi-
dential Inauguration and related activities for President
Crowley and President Goodall, and $5,000 to CCCC to cover
expenses of a major reception for President Eaton.
Mrs. Fong moved approval. Motion seconded by Miss Mason,
carried without dissent.
14. Bid Opening, Revenue Bonds
Vice Chancellor Partridge reported that bids were opened
August 8, 1979 for $9.1 million in revenue bonds to fund the
$5.1 million addition to the Dickinson Library at UNLV and
the $4 million College of Business Administration building
at UNR. Mr. Patridge recommended the Board of Regents ac-
cept the bid of L. F. Rothschild, Unterberg, Towbin, in
association with Paine, Webber, Jackson & Curtis, Inc.,
Oppenheimer & Co., Inc., and Foster & Marshall, Inc., at a
net interest cost of 6.0082%.
He further recommended adoption of the following resolution
to accept the above bid and to permit all additional steps
necessary to complete the issuance of these revenue bonds:
A RESOLUTION DESIGNATED BY THE SHORT TITLE "9-1-79 BOND
RESOLUTION"; CONCERNING THE UNIVERSITIES OF THE UNIVER-
SITY OF NEVADA SYSTEM; AUTHORIZING THE CONSTRUCTION,
OTHER ACQUISITION, AND IMPROVEMENT OF BUILDINGS, STRUC-
TURES, AND OTHER FACILITIES, AND ACQUIRING EQUIPMENT
AND FURNISHINGS THEREFOR, AND OTHER APPURTENANCES; FOR
THE PURPOSE OF DEFRAYING IN PART THE COST OF (1) THE
ADDITION TO THE DICKINSON LIBRARY, UNIVERSITY OF NEVADA
LAS VEGAS, SUBPROJECT, AND (2) THE COLLEGE OF BUSINESS
ADMINISTRATION BUILDING, UNIVERSITY OF NEVADA, RENO,
SUBPROJECT; AUTHORIZING THE ISSUANCE OF THE SECURITIES
OF THE UNIVERSITY OF NEVADA, DESIGNATED AS THE "UNIVER-
SITY OF NEVADA SYSTEM, UNIVERSITIES REVENUE BONDS, SER-
IES SEPTEMBER 1, 1979", IN THE PRINCIPAL AMOUNT OF
$9,100,000.00, FOR THE PURPOSE OF DEFRAYING IN PART
THE THE COST OF SUCH PROJECT; ACCEPTING ON BEHALF OF
THE UNIVERSITY THE BEST BID FOR THE PURCHASE OF THE
BONDS; PROVIDING THE INTEREST RATES WHICH THE BONDS
SHALL BEAR AND THE PURCHASE PRICE THEREFORE; PROVIDING
THE FORM, TERMS AND CONDITIONS OF THE BONDS, THE MANNER
OF THEIR EXECUTION, THE METHOD OF THEIR PAYMENT AND THE
SECURITY THEREFORE; PROVIDING FOR THE COLLECTION AND
THE DISPOSITION OF REVENUES DERIVED FROM CERTAIN FEES
AND OTHER CHARGES FROM STUDENTS ATTENDING THE UNIVER-
SITIES OF THE UNIVERSITY OF NEVADA SYSTEM, AND, CONDI-
TIONALLY, DERIVED FROM CERTAIN GRANTS AND POSSIBLY IN
THE FUTURE OTHER FEES, GRANTS AND FACILITIES OF THE
UNIVERSITY; PLEDGING SUCH REVENUES TO THE PAYMENT OF
THE BONDS; PROVIDING FOR THE ISSUANCE OF ADDITIONAL
BONDS AND OTHER SECURITIES PAYABLE FROM SUCH REVENUES;
PROVIDING DUTIES, PRIVILEGES, POWERS, LIABILITIES,
DISABILITIES, IMMUNITIES, AND RIGHTS PERTAINING THERE-
TO; PROVIDING OTHER COVENANTS, AGREEMENTS, AND OTHER
DETAILS, AND MAKING OTHER PROVISIONS CONCERNING THE
UNIVERSITIES, THE BONDS, AND THE PLEDGED REVENUES,
RATIFYING ACTION PREVIOUSLY TAKEN AND PERTAINING TO
THE FOREGOING MATTERS; PROVIDING OTHER MATTERS RELAT-
ING THERETO; AND REPEALING ALL RESOLUTIONS IN CONFLICT
Mr. Buchanan moved acceptance of the bid as presented and
adoption of Resolution #79-7 as recommended. Motion second-
ed by Mrs. Fong, carried without dissent.
15. Implementation of Early Retirement Provisions
Chancellor Baepler recalled that in June the Board had de-
ferred action on a recommendation for implementation of
early retirement provisions approved by the 1979 Legislature
in order that Counsel could more fully explore the legal
ramifications of the legislation as it relates to University
of Nevada faculty. He asked for comments by General Counsel
after which he stated he would offer his recommendation.
Mr. Lessly noted that an analysis of the legislation had
been mailed prior to the meeting (memorandum filed with
permanent minutes) in which he had identified several areas
of concern that he believed needed to be addressed. He re-
called that at the June 29 meeting, the Board had approved a
retirement policy that makes retirement mandatory for tenur-
ed faculty members at age 65 until July 1, 1982. He sug-
gested that the legislation on early retirement is in con-
flict with that mandatory retirement policy in that it does
not provide criteria with respect to adjusting to retirement
requirements, adding that if the Board authorizes the Presi-
dents to enter into contracts for early retirement, they not
be authorized to execute such contracts past the mandatory
retirement age for the employee involved.
The second concern which Mr. Lessly suggested the Board con-
sider is the possibility of having to make double payments
for retirement benefits if a contract is extended to an em-
ployee, and then the institution finds it necessary that
the 1/2 position which was vacated under this contract must
be filled. He suggested that an additional criterion be
established to require that any such agreement for phase-
in retirement be subject to the requirement that it create a
net gain to the University, as opposed to a net loss.
A third concern cited by Mr. Lessly was the lack of criteria
in the legislation governing the issuance or refusal to is-
sue such early retirement contracts. He recommended that
the Board determine some criteria as to what it will allow a
President to do in this regard so as to guard against law-
suits for arbitrary and capricious action.
A final area of concern was that the legislation does not
apply to any other than members of the Public Employees
Retirement System and Mr. Lessly suggested that it would be
necessary to adopt a similar policy for faculty who are
covered by TIAA-CREF.
Chancellor Baepler recommended: (1) that the Board approve
the implementation of the early retirement program as defin-
ed by statute; (2) that coverage for those people who are in
TIAA-CREF also be provided to insure that all employees are
treated equally; (3) that it be understood that the new re-
tirement policy approved by the Board on June 29 not be vio-
lated by extending such phase-in retirement contracts beyond
the retirement age; and (4) that the fundamental policy
guiding who is eligible to receive such early retirement
contracts be based on economic considerations, namely, that
the total cost to the institution of granting early retire-
ment contracts, including the possible costs of replacement,
shall not exceed the costs that would have been incurred by
the continued full-time employment of each individual.
Mr. Mc Bride moved approval of the Chancellor's recommenda-
tion. Motion seconded by Mr. Buchanan.
In the discussion following, President Crowley recalled that
the previous December the Board had authorized the Adminis-
tration to promote the early retirement concept with the
Retirement Board and with the Legislature, which had led to
the referenced legislation. He also recalled that one of
the basic reasons for proposing this phase-in retirement
program was that it was believed there would be a net gain
to the University, because people who would be participating
in the phase-in retirement program would be high-salaried
people, and the half-time position thus vacated could be
filled with a young faculty member at a lesser salary. Dr.
Crowley stated that he did not believe there would be any
problem in administering the program in accord with the
Mr. Lessly commented on the Chancellor's recommendation,
noting that the recommendation, if adopted, gives no option
to the appointing authority other than to grant a request
for early retirement to any employee who is qualified, so
long as the economic provisions are met.
Dr. Crowley suggested that it would be highly unlikely that
the University would not wish to grant early retirement to
anyone wishing to exercise that option. President Goodall
concurred, noting however that because of the difference in
the age structure of the UNR and UNLV faculties, he did not
believe this would be an issue for UNLV for some time.
Dr. Marschall, UNR Faculty Senate Chairman, expressed strong
support of the Chancellor's recommendation, commenting spe-
cifically on the concern expressed by Counsel over the lack
of criteria as to who would be granted or denied early re-
tirement. He stated that in his opinion it would be vir-
tually inconceivable that a situation would arise where the
University would not be willing to accept a request for
phase-in retirement, pointing out that now any person may
resign completely from the University at his or her discre-
tion, and if a highly desirable faculty member should elect
early retirement, it would be logical that the University
would cooperate in every way to accommodate that person's
best talents within the 1/2 time appointment. Conversely,
he suggested that if a mediocre professional wished to ex-
ercise the phase-in retirement option, it is unlikely that
the University would not welcome such a move.
Motion carried without dissent.
16. Supplement to Litigation Account
Chancellor Baepler requested an allocation of $25,000 from
the Board of Regents Special Projects Account to augment the
Litigation Account in the Chancellor's Office, noting that
litigation continues or will be initiated in some areas
which need funding; e. g., the Texas litigation involving
the Hughes Estate, the litigation that is necessary before
the Nevada Supreme Court for the bond issue in support of
the two Sports Pavilions and continuing NCAA litigation.
Mr. Lessly recalled that a lawsuit had previously been filed
against UNR by the American Civil Liberties Union, based on
Section 504 of the Handicapped Act of 1973, and the Archi-
tectural Barriers Act of 1968. As a result of the budget
that the Board of Regents presented to the Legislature, in-
cluding approximately $2.7 million for removal of architec-
tural barriers on the UNR Campus, and as a result of some
rather lengthy negotiations and discovery, Mr. Lessly re-
ported that Federal court had dismissed the lawsuit against
UNR and litigation is no longer pending.
Mr. Buchanan moved approval of the Chancellor's request.
Motion seconded by Mr. Karamanos, carried without dissent.
17. Proposed Workshop for Regents and Officers
Mr. Mc Bride referred to this proposal contained in the a-
genda (identified as Ref. F and filed with permanent min-
utes), and requested that the publications from AGB concern-
ing the guidelines and criteria for self-study, and the
Board Mentor Program, be sent to each of the Board members.
He suggested that, in that there are two new Board members
and three new Presidents, a workshop within the parameters
suggested in his memorandum be considered, and that a com-
mittee of two Regents, assisted by the Secretary of the
Board, be appointed to organize the self-study, arrange for
participants from the Board Mentor Program, and develop a
proposal for dates, location, a budget, and an agenda for
Mr. Ross moved that the suggestion by Mr. Mc Bride be ap-
proved. Motion seconded by Mr. Buchanan, carried without
18. Report of Audit Committee
Chancellor Baepler reported that the Audit Committee had
held its final organization meeting the previous day, and
suggested that Mr. Mc Bride, who Chairs the Committee, might
wish to comment.
Mr. Mc Bride agreed that the meeting had been very produc-
tive and expressed appreciation that two Board members who
were not on the Committee had attended and contributed to
the discussion. He encouraged the attendance of other
Regents in subsequent meetings. Mr. Mc Bride also requested
that any information concerning problems which would benefit
from review by the Audit Committee be referred to the Com-
mittee in order that it can be directed into the proper
channels. In response to a question concerning the improve-
ment of the Audit Committee as an investigative body, Mr.
Mc Bride stated that he did not anticipate the Committee
having an adversarial relationship with the Administration,
rather he believed that the appropriate role of the Commit-
tee would be as a representative of the Board as a whole,
looking at things in depth in cooperation with the
Chancellor Baepler also reported that the Committee is
anticipating a proposal to the Board of a revised set of
responsibilities, thereby expanding the Committee to a
The meeting adjourned for lunch and a meeting of the Investment
Advisory Committee, reconvening at 1:45 P.M.
19. Report of Investment Advisory Committee
Mr. Karamanos reported the following actions and recommenda-
tions by the Investment Advisory Committee:
(1) In January, 1979, the Committee considered and tabled a
proposal by Nevada National Bank to manage a portion of
the University's endowment fund. That proposal was a-
gain considered by the Committee at this meeting and it
was the consensus of the Committee that at such time as
new monies come into the endowment fund that could be
suitably managed by Nevada National Bank, the Invest-
ment Advisory Committee would explore this matter fur-
ther with the bank.
(2) Approved a recommendation by Valley Bank for purchase
of the following stocks, conditional upon the market:
No. Purchase Total Value Present
Shrs Company Price* of Purchase Price
600 I. B. M. 68 $ 40,800 69
3600 Merrill Lynch 19 68,400 20
3400 Pittston 22 74,800 23
1250 Schering Plough 31 38,750 33
1000 Union Carbide 40 40,000 41
2400 Weyerhaeuser 27 64,800 31
2500 Western Bancorporation 28 70,000 33
2500 United Airlines 29 72,500 27
1800 United Technologies 40 72,000 41
* at proposed price or lower $542,050
(3) Concurred in the recommendation by Security National
Bank that no changes be made at this time in the
portfolio managed by that bank.
(4) Approved a recommendation by FNB to sell the following
Approx. Approx. Antic. Mkt.
Units Price Value Income Yield
5 American Tel & Tel. Pfd. Conv. $4
60. $ 300 $ 20 6.7
100 American Tel & Co. Common
57. 5,700 500 8.8
1408.39 Dreyfus Fund 12.93 18,210 662 3.0
3036 The Investment Co. of America
7.97 24,197 1579 6.5
507 Keystone Custodian Funds K-1
7.44 3,772 279 7.4
710.35 Washington Mutual Investors Fund
6.80 4,830 242 5.0
Mr. Karamanos requested approval by the Board of the Commit-
Mrs. Knudtsen moved approval. Motion seconded by Dr.
Lombardi, carried without dissent.
20. Request to Sell Revenue Bonds
Chancellor Baepler recalled that in June the Board author-
ized the Administration to proceed with the initial steps
toward the sale of $56 million in revenue bonds for the two
Sports Pavilions. He reported that the appropriate docu-
ments for this purpose have now been prepared and recommend-
ed adoption of the following resolution and authorization
to proceed with the additional steps necessary to effect
the sale of these bonds:
A RESOLUTION DESIGNATED BY THE SHORT TITLE "11-1-79
BOND RESOLUTION"; CONCERNING THE UNIVERSITIES OF THE
UNIVERSITY OF NEVADA SYSTEM; AUTHORIZING THE CONSTRUC-
TION, OTHER ACQUISITION, AND IMPROVEMENT OF BUILDINGS,
STRUCTURES, AND OTHER FACILITIES, AND ACQUIRING EQUIP-
MENT AND FURNISHINGS THEREFOR, AND OTHER APPURTENANCES,
FOR THE PURPOSE OF DEFRAYING IN WHOLE OR IN PART THE
COST OF (1) THE MULTIPURPOSE PAVILION ON THE CAMPUS OF
THE UNIVERSITY OF NEVADA, LAS VEGAS, SUBPROJECT, (2)
THE MULTIPURPOSE PAVILION ON THE CAMPUS OF THE UNIVER-
SITY OF NEVADA, RENO, SUBPROJECT, AND (3) THE BUSINESS
AND HOTEL ADMINISTRATION BUILDING, PHASE I, ON THE
CAMPUS OF THE UNIVERSITY OF NEVADA, LAS VEGAS, SUBPROJ-
ECT; AUTHORIZING THE ISSUANCE OF THE SECURITIES OF THE
UNIVERSITY OF NEVADA, DESIGNATED AS THE "UNIVERSITY
OF NEVADA SYSTEM, UNIVERSITIES REVENUE BONDS, SERIES
NOVEMBER 1, 1979", IN THE AMOUNT OF $58,000,000.00,
FOR THE PURPOSE OF DEFRAYING IN PART THE COST OF SUCH
PAYMENT; PROVIDING THE FORM, TERMS, AND CONDITIONS OF
THE BONDS, THE MANNER OF THEIR EXECUTION, THE METHOD
OF THEIR PAYMENT AND THE SECURITY THEREFOR; PROVIDING
FOR THE COLLECTION AND THE DISPOSITION OF REVENUES DE-
RIVED FROM CERTAIN FEES AND OTHER CHARGES FROM STUDENTS
ATTENDING THE UNIVERSITIES OF THE UNIVERSITY OF NEVADA
SYSTEM, AND DERIVED FROM CERTAIN STATE GRANTS CONSIST-
ING OF STATE SLOT MACHINES TAX PROCEEDS, AND POSSIBLY
IN THE FUTURE OTHER FEES, OTHER GRANTS AND FACILITIES
OF THE UNIVERSITY; PLEDGING SUCH REVENUES TO THE PAY-
MENT OF THE BONDS; PROVIDING FOR THE ISSUANCE OF ADDI-
TIONAL BONDS AND OTHER SECURITIES PAYABLE FROM SUCH
REVENUES; PROVIDING DUTIES, PRIVILEGES, POWERS, LIABIL-
ITIES, DISABILITIES, IMMUNITIES, AND RIGHTS PERTAINING
THERETO; PROVIDING OTHER COVENANTS, AGREEMENTS, AND
OTHER DETAILS, AND MAKING OTHER PROVISIONS CONCERNING
THE UNIVERSITIES, THE BONDS, AND THE PLEDGED REVENUES;
RATIFYING ACTION PREVIOUSLY TAKEN AND PERTAINING TO
THE FOREGOING MEMBERS; PROVIDING OTHER MATTERS RELAT-
ING THERETO; AND REPEALING ALL RESOLUTIONS IN CONFLICT
Miss Mason moved approval. Motion seconded by Mrs. Fong,
carried without dissent.
21. Request for Authorization to Lease Space, WNCC
President Davis requested authorization to lease 2,500 sq.
feet of space at 400 Hot Springs Road, Carson City, from Mr.
Roger Shaheen for a monthly rental of $1,225, for the period
August 1, 1979 to June 30, 1980, to provide space for the
CETA Slot Mechanic Training Program. Chancellor Baepler
Miss Mason moved approval. Motion seconded by Mr. Ross,
carried without dissent.
Mr. Buchanan commented on the involvement of the Community
Colleges in gaming-related instructional programs, suggest-
ing that greater efforts should be made to provide training
for employees of the gaming industry.
Dr. Davis reported that WNCC has been involved in instruc-
tion for slot mechanics, blackjack dealing, and other gaming
skills for three years and would propose to continue that
kind of instruction as long as allowed to by the Board of
Regents and requested to by the industry.
Dr. Eaton noted that CCCC offers courses in casino manage-
ment now as part of the Hotel-Motel Management Program and
the Food Technology Program. She also noted that there had
been some discussions internally at CCCC about the potential
of expanding these programs in such a way that would include
training for the gaming industry, and anticipated that fur-
ther exploration into this possibility would occur. She
agreed that the Community Colleges would be an appropriate
agency to offer this kind of instruction, particularly since
they would be in the position to provide general education
courses along with the specialized training.
Dr. Berg reported that NNCC attempts to provide training in
the areas demanded by the community, noting that there has
not been a demand in the Elko area for this type of train-
ing. He pointed out, however, that the Community College
exists to meet the needs of the occupational areas and if
the requests are made, NNCC will try to service them.
22. NNCC Revolving Fund
Chancellor Baepler noted that Northern Nevada Community
College maintains a $1,000 revolving fund for emergency
purposes. He reported that President Berg had requested
that this fund be increased to $5,000, during registration
periods only, to be used for emergency loans and to be re-
plenished from the emergency loan account when the neces-
sary paper work has been completed. At the end of each
registration period, the account will revert to the level
of $1,000. Signature authority will remain with President
Berg, Carol Groves and Betty Richardson.
Dr. Lombardi moved approval. Motion seconded by Mr.
Karamanos, carried without dissent.
23. Appointments to National Advisory Board
President Smith recommended the following appointments to
the National Advisory Board for the Desert Research
George E. Aker, President, Nevada National Bank
Joseph S. Cragwall, Jr., Assistant Chief Administrator,
Water Resources Division, U. S. Geological Survey
Lawrence R. Greenwood, Director, Environmental
Observation Division, Office of Space and
L. Edward Perry, formerly Chief Biologist, Columbia
River Fishery Development
Dr. Lombardi moved approval. Motion seconded by Mr. Mc
Bride, carried without dissent.
24. New Business
A. Mr. Buchanan requested a report from Clark County
Community College concerning the feasibility of offering
educational programs related to the gaming industry.
B. Mr. Buchanan also reported that there is pressure for
the appointment of a committee on the Law School, as re-
quested at an earlier meeting, and asked for a report on
the status of that request. Chancellor Baepler stated
that this matter would be on the September agenda.
C. Mrs. Fong asked for a status report on the implementa-
tion of the Committee on Minority Affairs. Chancellor
Baepler stated that the Committee would be operational
D. Mr. Ross asked for consideration at the September meet-
ing of the appointment of William Van Patten to the
Advisory Board of Western Nevada Community College.
25. Appointments to Special Committees
Mr. Cashell announced the following appointments to special
committees established by the Board:
A. Special Committee for Sports Pavilions
Regent John Tom Ross, Chairman
Regent James L. Buchanan
Dr. Richard Dankworth, Vice President for University
Dr. Wayne Pearson, Assistant Director of Athletics, UNLV
Mr. Ernest Martinelli, Booster
Mr. William Morris, Booster
B. Special Committee for Board Workshop
Regent John Mc Bride
Regent Louis E. Lombardi
The meeting adjourned at 2:30 P.M.
Bonnie M. Smotony
Secretary of the Board