September 3-4, 1976
09-03-1976
Pages 22-42
BOARD OF REGENTS
UNIVERSITY OF NEVADA SYSTEM
September 3, 1976
The Board of Regents met on the above date in the Teacher Educa-
tion building, University of Nevada, Las Vegas.
Members present: Fred M. Anderson, M. D.
Mr. James L. Buchanan, II
Mr. John A. Buchanan
Mrs. Lilly Fong
Louis E. Lombardi, M. D.
Miss Brenda D. Mason
Mr. John Tom Ross
Miss Helen R. Thompson
Members absent: Mrs. Molly F. Knudtsen
Others present: Chancellor Neil D. Humphrey
President Donald H. Baepler, UNLV
President Charles R. Donnelly, CCD
President Max Milam, UNR
President Lloyd P. Smith, DRI
Mr. Larry Lessly, General Counsel
Mr. Richard Belaustegui, Unit Senate
Dr. Paul Burns, UNLV Senate
Dr. James Richardson, UNR Senate
Mr. Paul Swartz, CCD Senates
Mr. Joseph Warburton, DRI Senate
Mr. Dan Russell, CSUN
Mr. James Stone, ASUN
The meeting was called to order by Chairman Buchanan at 2:00 P.M.
1. Approval of Minutes
The minutes of the meeting of July 23, 1976 were submitted
for approval.
Mrs. Fong moved approval. Motion seconded by Miss Mason,
carried without dissent.
Upon motion by Mrs. Fong, seconded by Mr. Ross, the Supplemental
Action and Information Agendas were accepted.
2. Optional Retirement Plan for Faculty
Chancellor Humphrey recalled that in 1969 the University,
with the full consent and cooperation of the faculty, re-
quested the Legislature to allow faculty the option to join
either the Nevada Public Employees Retirement System (PERS)
or another retirement program selected by the Board of
Regents. This optional program was to be the Teachers
Insurance and Annuity Association of America - College
Retirement and Equities Fund (TIAA-CREF). The Legislature,
after much consideration and extensive lobbying by the
University, Board of Regents, Administration and faculty,
enacted the legislation. It provided that all faculty em-
ployed after July 1, 1969 would choose which system they
wished and that faculty employed before July 1, 1969 would
have until December 9, 1969 to decide whether or not they
wished to discontinue membership in PERS and join TIAA-CREF.
The law provided that if an existing faculty member chose to
join TIAA-CREF, the amount credited to his account with PERS
would be withdrawn and either paid to him or transferred to
TIAA-CREF. By law, the contribution paid by the University
to PERS as a matching amount was not credited to his account
and remained in the PERS fund. This was true then, and now,
for persons withdrawing from PERS when leaving the Univer-
sity or other covered employment. The University had orig-
inally sought to have the University's contribution to PERS
returned but this was one of the compromises which had to be
agreed to in order to secure passage of the legislation.
He continued by recalling that in 1975 the PERS Board gave
consideration to seeking legislation which would do away
with the optional plan for University faculty and provide
that all new faculty would have to go to TIAA-CREF or all
would have to go to PERS. As an inducement to agree to
this, it was proposed that existing faculty (both those
employed before July 1, 1969 and those employed after that
date) would once again be given an opportunity to select a
retirement plan. The University opposed doing away with the
optional plan and the PERS Board dropped the matter.
Chancellor Humphrey then reported that the UNLV Senate has
recently adopted a motion "... to recommend that the Board
of Regents review the procedure which occurred during the
transfer of retirement to TIAA-CREF in 1969; that they de-
termine whether or not the information given those who had
a choice to make was clear in that the State's contribution
would not be transferred with the employee's contribution;
and that the option to remain with or transfer retirement
plans again be made available."
Dr. Humphrey stated that in 1969 each faculty member wishing
to withdraw from PERS to join TIAA-CREF was counseled by a
Division representative. Each faculty member withdrawing
received either a check from PERS or a memorandum of credit
to TIAA-CREF. He pointed out that seven years have now
passed since those individual decisions were made. He also
noted that if this matter is pursued, it is reasonable to
assume that the PERS Board will again seek to discontinue
the option for UNS Faculty. He recommended that no action
be taken at this time and that the various Senates be re-
quested to make recommendations for the October meeting.
Dr. Paul Burns, UNLV Senate Chairman, reviewed the action by
that Senate, noting that the important question which they
are asking the Regents to consider is whether or not it was
made clear to faculty choosing to transfer that the funds
provided by the State would not be transferred to TIAA-CREF.
Mr. Joseph Warburton, DRI Senate Chairman, urged that the
Senates be allowed to look at this and come back to the
October meeting.
Mr. I. R. Ashleman, Counsel for the UNLV Chapter of NSP,
distributed a letter to the Board (on file in the Chancel-
lor's Office), in which he requested that he and representa-
tives of NSP be allowed to participate with a subcommittee
of the Board of Regents assigned to discover the extent of
this inequity and draft proposals for a possible legislative
solution.
Chancellor Humphrey again recommended that no action be
taken by the Board except to ask the Division Senates to
review this request by the UNLV Senate and to develop rec-
ommendations for consideration by the Board at the October
meeting. The Board agreed, by consensus, to take no further
action until the October meeting.
3. Report of Gifts and Grants
Acceptance of the gifts and grants as reported by the Di-
vision Presidents was recommended. (Report identified as
Ref. 2 and filed with permanent minutes.)
In addition, President Milam reported that the trustees of
the Houghton Foundation of Reno have offered a gift of
$25,000 to the University of Nevada System "for purpose of
establishing a scholarship endowment for the UNR Medical
School. The income derived is intended to be employed to
provide one or more annual scholarships to students who are
graduates of a Nevada High School. Academic potential is
suggested as a primary basis for award, with financial need
to be determinative should more than one candidate indicate
substantially equal potential."
President Milam and Chancellor Humphrey recommended accept-
ance of this offer by the Houghton Foundation and the con-
ditions as set forth by its trustees.
Miss Thompson moved acceptance of the gifts and grants in
Ref. 2 and of the offer by the Houghton Foundation. Motion
seconded by Miss Mason, carried without dissent.
4. Reports of Investment Advisory Committee
The minutes of the Investment Advisory Committee meeting of
July 23, 1976 were distributed with the agenda (identified
as Ref. 3A and filed with permanent minutes). In addition
the minutes of a special meeting of the Investment Advisory
Committee, held on August 13, 1976 to consider retention of
an investment consultant, were also included with the agenda
(identified as Ref. 3B and filed with permanent minutes).
Chancellor Humphrey recommended that the actions of the
Committee be confirmed, including the allocation of $4,125
from the Board of Regents Special Projects Fund to provide
one-half of the consulting fee (the other half to be gener-
ated by brokerage commissions).
Dr. Lombardi moved approval. Motion seconded by Mr. John
Buchanan, carried without dissent.
5. Approval of Fund Transfers, UNLV
President Baepler requested approval of the following trans-
fers of funds:
From Contingency Reserve, State Appropriated Accounts:
#77-002 $24,981 to Theatre Arts Professional Salary cate-
gory to provide funds for transfer of two classi-
fied positions to professional status.
#77-004 $15,590 to Controller's Office Professional Salary
category to provide funds for transfer of a classi-
fied position to professional status.
#77-005 $18,027 to Special Education to provide for a new
professional position.
#77-007 $12,144 to Library to provide for a new profession-
al position.
#77-013 $10,000 to Audio Visual Professional Salary cate-
gory to provide funds for transfer of a classified
position to professional status.
#77-015 $34,714 to establish an account for an Affirmative
Action Office ($2,500 to Operating, $21,575 to
Professional Salary category, and $10,639 to Clas-
sified Salary category).
From Ending Fund Balance, Estimative Budget Account:
#77-011 $6,633 to Physical Education to establish a full-
time classified position to assist in Women's
Locker Room.
From Contingency Reserve, Statewide Services Account:
#77-018 $7,344 to UNLV Museum to provide funds for transfer
of a classified position to professional status.
Chancellor Humphrey recommended approval.
Miss Mason moved approval. Motion seconded by Mr. John
Buchanan, carried without dissent.
6. Rebel Athletic Foundation
Mr. John Buchanan recalled that the Board had considered
at the July 23, 1976 meeting, and denied, a request by the
Rebel Athletic Foundation for lease of certain University-
owned land on which to construct an apartment house for
rent to student athletes.
Mr. Buchanan stated that he wished to ask for reconsidera-
tion of the previous action and presented the following
statement:
I am bringing before the Board an item which I feel
is worthy of reconsideration. This item deals with
the proposal brought to the Board at the July meet-
ing at which the Rebel Athletic Foundation was re-
questing the leasing of a 5-acre parcel from UNLV.
At the time I cast the negative vote I did not feel
the housing was in the best interest of the University.
To say the least, I felt the entire project was pre-
sented leaving too many "loose ends" resulting in what
I considered would amount to an unsatisfactory project.
However, in the last month the Rebel Athletic Founda-
tion has worked hard to present a clearer concept of
the project and has introduced additional information
which is influential in my move to reconsider.
The crux of the argument against this project at the
last meeting seemingly centered against the Univer-
sity's possibly semi-administering a facility similar
to the one we have at Tonopah Hall, and secondly, that
of selective housing for student athletes. The addi-
tional information supplied to me indicates that the
possibility of administering the facility has now been
considered more closely by the RAF. Their policy pur-
ports to be similar to that of similar housing projects
of this kind. Secondly, selective housing for a par-
ticular University group no longer appears to be a
problem as the RAF is securing 200 units off Campus
on a site close to the University. Thus, there should
be adequate housing for a large variety of students
and faculty.
Because of this and the seemingly generous offer of the
Rebel Athletic Foundation, I am proposing that the Board
reconsider this as an action item for the October meet-
ing in Reno. In the meantime, I am requesting that Uni-
versity Counsel look into the proposed housing concept
and advise the Board as to its ramifications. I am also
requesting that the University architect examine the
facility's plans with the contracted architect, while
additional work is done, as to how the facility would
affect the flow of traffic on existing roads and possib-
ly affect present and proposed facilities. The 5-week
period until the next meeting should give not only the
staff a chance to look at this proposal, but should give
the Regents adequate time to ask further questions of
the Rebel Athletic Foundation.
Mr. John Buchanan moved to reconsider the action taken at
the July meeting. Motion seconded by Mr. Ross, carried
without dissent.
Mr. William Morris, President of the Rebel Athletic Founda-
tion, spoke concerning the revamping of the project since
its presentation at the July meeting, the Foundation's plans
to build an additional project on land purchased by the
Foundation and located near the Campus, and the financing
that has now been arranged with FHA. He requested tentative
approval of the site of five acres on Harmon Avenue adjacent
to the Rebel House Apartments, and approval of the concept
in principle, subject to further action by the Board at the
October meeting.
Dr. Lombardi moved approval of the concept in principle,
tentative approval of the proposed site, subject to further
legal and architectural review and subject to further action
by the Board at the October meeting. Motion seconded by Mr.
John Buchanan, carried without dissent.
7. Student Union Bookstore Remodeling, UNLV
President Baepler reported that the UNLV Student Union Board
has proposed to enlarge the existing bookstore by extending
the present facilities to encompass the TV Lounge and cen-
tral space in the existing Union building. The total cost
of the remodeling is anticipated to be not more than $35,000
with additional fixtures for display and sales to be bid
separately.
President Baepler endorsed a request by the Student Union
Board that James Mc Daniel be designated as the architect
for this work, and recommended approval by the Board of the
appointment of Mr. Mc Daniel, authorization of the remodel-
ing of the space as indicated, and authorization of the
acquisition of additional fixtures, subject to final ap-
proval of all costs. Chancellor Humphrey concurred.
Mrs. Fong moved approval. Motion seconded by Miss Mason,
carried without dissent.
8. Request for Interfund Loan, UNLV
President Baepler requested approval of a noninterest bear-
ing loan of $20,000 to Central Stores from the Capital Im-
provement Fee Fund to cover inventory expansion for 1976-77.
The loan is to be repaid from sales made from Central Stores
to other Departments. Chancellor Humphrey recommended
approval.
Dr. Lombardi moved approval. Motion seconded by Miss Mason,
carried without dissent.
9. Revenue Bond Legislation
President Baepler recalled that the 1975 Legislature had
authorized the issuance of $10 million in revenue bonds to
construct facilities on the UNLV Campus for lease to the
U. S. Environmental Protection Agency. Subsequent to the
enactment of that authorizing legislation, it was learned
that a legal opinion as to the tax exempt status of the
issue could not be secured due to recent Internal Revenue
Service rulings on similar issues. The matter was pursued
with IRS without success.
Dr. Baepler further reported that John R. Mc Bride, Acting
Director of EPA's Environment Monitoring and Support Labor-
atory in Las Vegas, has urged the University to proceed with
plans to construct this facility by requesting the 1977
Legislature to authorize the issuance of taxable, rather
than non-taxable, bonds.
President Baepler and Chancellor Humphrey recommended that
such authority be requested from the 1977 Legislature, with
the bonds to be repaid by leasing the facility to EPA for
20 years.
Mrs. Fong moved approval. Motion seconded by Miss Thompson,
carried without dissent.
10. Approval of Fund Transfers, UNR
President Milam requested approval of the following fund
transfers from the Contingency Reserve, State Appropriated
Accounts:
#026 $6,303 to Journalism to be used to employ a part-time
instructor for radio and TV courses.
#028 $700 to Allied Health, Medical Technology, to provide
wages money for work-study students for the labora-
tories.
#032 $2,452 to Foreign Languages and Literature to provide
funds for salary of a professional employee hired at
an amount larger than budgeted.
#042 $3,600 to Managerial Sciences to provide for a salary
of a part-time instructor of Business Law.
#043 $17,792 to Psychology to provide funds for partial
support of two faculty members whose Federal grants
are terminating during the current year.
#045 $17,860 to Medical School, to consolidate all printing
copying budgets for 1976-77. These items were previ-
ously allocated among the Departments. This procedure
is in response to a recommendation by the Medical
School Executive Committee.
#047 $14,529 to Biology to provide funds for a letter of
appointment for a part-time instructor and for the
appointment of three graduate assistants to staff
laboratories, thus releasing regular staff members to
meet other teaching obligations. Funds are available
from an unfilled professional position.
#049 $6,873 to Accounting and Information Systems to pro-
vide funds for professional appointments made at sal-
aries larger than budgeted, and to provide for letters
of appointment for the Fall and Spring semesters.
Chancellor Humphrey recommended approval.
Mr. Ross moved approval. Motion seconded by Mrs. Fong,
carried without dissent.
11. Addition to Renewable Natural Resources Facility, UNR
President Milam recommended that Ray Hellmann be designated
as the architect for the addition to the Renewable Natural
Resources Facility, that this project be constructed in
cooperation with the State Public Works Board, and the fol-
lowing project scope and budget be approved:
Funding
Fleischmann Foundation $ 600,000
Proceeds from sale of 4.28 acres
of Valley Road Farm 253,800
College of Agriculture funds from
facility accounts 146,200
$1,000,000
Budget (tentative)
Construction $ 826,500
Surveys & Soil Test 2,600
A/E Fees 83,000
Plan Check 3,000
Advertising 200
Contingency 30,000
Inspection 12,000
Testing 1,200
Furnishings 35,000
Sewer Fees 4,000
Miscellaneous 2,500
$1,000,000
Chancellor Humphrey recommended approval.
Mrs. Fong moved approval. Motion seconded by Mr. Ross,
carried without dissent.
12. Procedure for Recruitment of Academic Vice President, UNR
In response to a request by Mrs. Fong, Mr. Harry Wolf, UNR
Affirmative Action Officer, explained the procedure followed
in the recruitment of an Academic Vice President for UNR.
Mr. Wolf explained that the University is required by Fed-
eral regulation to establish hiring quotas and timetables
based on a utilization analysis of its internal work force
by each job category and compare that to the national appli-
cant pool in the same job category. This procedure was fol-
lowed to determine whether or not the University would be
permitted to recruit internally for the position of Academic
Vice President. The analysis showed that in the job cate-
gory (i. e., College and University Administrators) there
are 25% women at UNR as opposed to 19.6% national availabil-
ity. UNR has 8.3% minority persons in the job category
under analysis, whereas there are 2.4% on a national basis.
Consequently, the decision was made to recruit internally
and this decision was endorsed by Wade Madison, Jr., the
Senior Compliance Officer of the Office of Civil Rights,
who has assured the University that the procedures followed
were correct and legal.
Mr. Wolf further explained that the President has the right,
mandated in a memorandum to all Colleges and University
Presidents from Peter Holmes, Director of the Office of
Civil Rights, to establish the position standards and re-
quirments. He stated that in the case of the position of
Academic Vice President, Dr. Milam has concluded that the
individual appointed to this position should have a back-
ground as a College Dean or Program Director, believed it
extremely important that he should have some familiarity
with the University of Nevada, Reno.
In response to several questions, Mr. Wolf confirmed that
the recruitment had been confined to the Reno Campus; how-
ever, when applications had been received from outside the
Reno Campus from other Divisions of the University, the
applications had been reviewed and considered by the com-
mittee.
In response to a question from Chairman Buchanan, Mr. Wolf
stated that he believed the University to have complied with
all Federal and UNS regulations in the recruitment for the
position of Academic Vice President.
President Milam also noted, in response to an inquiry about
the applications from persons in other Divisions of the
System, that it was not the intent to advertise outside of
UNR, and the notice of the position was not sent by UNR it-
self to other Divisions. He commented that he had no ex-
planation for its being published in a UNLV publication.
He also confirmed Mr. Wolf's statement that all applications
were considered.
In response to a question from Chairman Buchanan as to
whether or not the fact that applications had been received
from persons outside of UNR would change the validity of
the internal recruiting procedure, Mr. Wolf stated that
there had been no intention to advertise the position to
other than UNR community.
The Chairman declared the discussion closed and stated that
further discussion concerning candidates would occur in
personnel session.
13. Approval of Fund Transfers, CCD
President Donnelly requested approval of the following fund
transfer:
$15,050 from CCCC Contingency Reserve to Library Operating
to provide funds for film rental and purchase of books.
Chancellor Humphrey recommended approval.
Dr. Lombardi moved approval. Motion seconded by Miss Mason,
carried without dissent.
14. Procedure for Payment of Accrued Annual Leave, DRI
Mr. Mark Dawson, Business Manager, DRI, made the following
request concerning accrued annual leave:
As you know the Desert Research Institute is funded
largely from grants and contracts which to date have
not been paying for accrued annual leave. As of July
1, 1976 the DRI had approximately $220,000 of annual
leave on the books, much of which has been earned from
grants and contracts which have closed.
I request a new procedure be approved for the DRI for
paying for annual leave as follows. As annual leave
is earned during a month, it would be charged as a
fringe benefit to the account or accounts to which the
salary has been charged and deposited to an Annual Leave
Reserve Account. Then, as annual leave is taken, it
would be charged to the Annual Leave Reserve Account.
If approved, this procedure will have to apply to all
employees regardless of the source of salary funding
as required by the Federal government to prevent dis-
crimination against outside grants and contracts.
If approved, this would require a major programming
effort on the part of the Computing Center. Since
it would also take some time to get budgeted into
grants and contracts, I propose it become effective
July 1, 1977.
If approved, it is requested that the DRI be allowed
to fund the unfunded leave from Indirect Cost Recovery
over a period of 5 years. At the end of each fiscal
year we would perform a detailed audit of accrued an-
nual leave and the Annual Leave Reserve Account to
determine what adjustments, if any, would be needed.
I further request authorization to invest the balance
of the Annual Leave Reserve Account and deposit the
interest back into the account. The interest income
generated plus the leave foreited by personnel not
taking their leave would help pay for increased annual
leave expenses caused by salary increases.
President Smith recommended approval. Chancellor Humphrey
concurred, noting however that this will require legislation
as it affects appropriated accounts.
Miss Thompson moved approval. Motion seconded by Mrs. Fong,
carried without dissent.
15. Proposed Bylaws for United Students, UNS
Proposed Bylaws for the University of Nevada Student Govern-
ments Council were submitted with the agenda (identified as
Ref. 13 and filed with permanent minutes). The Officers
recommended approval by the Board.
Dr. Lombardi moved approval. Motion seconded by Mrs. Fong.
In response to a question concerning the membership, Jim
Stone, USUNS President, stated that it was intended that the
WNCC-North and WNCC-South would each be regarded as a Campus
for this purpose.
Motion carried without dissent.
16. Public Employees Retirement System
Chancellor Humphrey reported that on August 26, 1976, the
Public Employees Retirement Board decided that as of July 1,
1976 University of Nevada System faculty on academic year
contracts would received only ten months service credit for
the year and not one year service credit previously receiv-
ed. This action was based on that Board's interpretation
of NRS 286.495(3) which states that service on or after
July 1, 1975 shall be credited on the basis of days, months
or years actually worked.
Dr. Humphrey noted that this matter first came to the Uni-
versity's attention when the PERS Board, by a 4 to 3 vote,
decided to reduce by 20% the pensions of UNR faculty retir-
ing July 1, 1976. The PERS Board has asked the Attorney
General for additional advice and plans to go to court to
seek a ruling.
Dr. Humphrey suggested that it was unlikely that the Legis-
lature intended to penalize UNS faculty and to assign them
less service credit for an academic year of teaching than
is assigned public school faculty, noting that public school
teachers are excluded from NRS 286.495 and their service
credit is computed under the provisions of NRS 286.501, and
is calculated on a ratio of one and one-third days for each
day worked (the 4/3's Rule).
Dr. Humphrey requested authorization to seek legislation
which would make it explicit that University faculty on
academic year contracts would be treated similarly to public
school teachers for the calculation of service credit. He
further suggested that the legislation would be applied
retroactively to insure that both past and present faculty
employed on academic year contracts prior to 1976-77, and
who plan to retire under PERS, will have their service
credit computed on an annual basis as they and the Univer-
sity had expected.
Mr. Ross moved approval. Motion seconded by Miss Thompson,
carried without dissent.
17. Student Fees, 1977-79
Chancellor Humphrey requested that this proposal to revise
the refund policy be withdrawn for additional review at the
Campus level and be resubmitted to a subsequent meeting.
18. Board of Regents Special Projects Fund
Chancellor Humphrey noted that NRS 451.350 to 451.470, the
Anatomical Dissection Law, provides that the University of
Nevada System shall have the power to establish a committee
on anatomical dissection, and provides that its members be
appointed by the Nevada State Medical Association, Nevada
State Dental Association, Nevada State Society of Patholo-
gists, Nevada Funeral Service Association, State Health
Office and the Presidents of UNR and UNLV. He reported that
the committee has been appointed and is ready to proceed.
The committee meetings will be held in Reno and only one
member will be on travel status. Chancellor Humphrey re-
quested an allocation of $500 from the Board of Regents
Special Projects Fund to establish a travel fund for this
committee.
Dr. Lombardi moved approval. Motion seconded by Mr. John
Buchanan, carried without dissent.
19. Long-Term Income Protection Policy
Chancellor Humphrey recalled that in 1969 the Board, upon
the recommendation of the Faculty Welfare Committee of the
UNR Faculty Senate, adopted a long-term disability income
plan bid by the American Fidelity Assurance Company. This
plan was made available to all faculty and staff on an op-
tional basis through payroll deductions.
Dr. Humphrey reported that in April, 1976 the insurer advis-
ed the University that the trends indicated increased cost
escalation on the plan, and the need for the University to
maintain the 50% participation rate. A meeting was held
with the company to discuss modifications to the plan. Sub-
sequently, the Personnel Officers and the Division Senates
were requested to comment on the proposed contract changes.
Based on additional information that other carriers were
perhaps interested in underwriting this plan, the long-term
income protection plan was rebid with a closing date of
August 23. Chancellor Humphrey requested that the recom-
mendation of the UNS System Personnel Officers be presented
by Dr. Al Stoess.
Dr. Stoess reported that only one bid was received and was
rejected as it was received after the deadline. Represent-
atives of insurance companies who had previously indicated
an interest in the plan stated that their companies had
declined to bid because of the high loss experience and low
employee participation.
Dr. Stoess reported further that the Personnel Officers
recommend that the present plan be continued with American
Fidelity Assurance Company, with the following contract
changes in lieu of a rate increase:
1) Inclusion of a provision eliminating coverage for con-
ditions receiving treatment prior to the effective date
of the coverage.
2) Benefit payments to begin after 180 days of disability
instead of 90 days, currently provided in the contract.
3) Elimination of the pension supplement benefit.
4) Reduction of the minimum monthly indemnity from $100
to $50.
Chancellor Humphrey recommended approval of the recommenda-
tions of the System Personnel Officers and noted that he is
not aware of any faculty objections.
Mr. John Buchanan moved approval. Motion seconded by Mrs.
Fong, carried without dissent.
20. UNR Food Service
President Milam noted that the food service at the Stead
Campus and catering service to the National College of the
State Judiciary have been operated by General University
Extension for several years. However, with the reorganiza-
tion of that unit into Extended Programs and Continuing
Education, they have asked to be relieved of the food serv-
ice function. Accordingly, Professional Food Management
(PFM), which provides a contract food service to the Reno
Campus, was asked if they would extend their contract to
provide lunch at Stead and to meet all catering requirements
of the University. PFM has agreed to this extension of
their contract, with the understanding that the 11% rebate
on the first $50,000 of the above sales would not be
required.
President Milam recommended that the University extend PFM's
contract for the food service at Stead and for catering
services effective October 1, 1976. He stated that every
effort would be made to relocate the four employees affected
with other Departments of the University or with other gov-
ernment agencies. Chancellor Humphrey concurred.
Dr. Lombardi moved approval. Motion seconded by Mrs. Fong,
carried without dissent.
21. Approval of Fund Transfers, UNS
Chancellor Humphrey requested approval of the following fund
transfers within the Computing Center:
#76-08 $1,005 from the Contingency Reserve to Academic Uses
to support acquisition of software.
#76-09 $7,896 from the Contingency Reserve to Academic
Research to provide wages for student assistants.
#76-06 $1,000 from the Ending Fund Balance of the System
Software Estimative Budget to bring account to 76-77
Work Program level.
Mrs. Fong moved approval. Motion seconded by Dr. Lombardi,
carried without dissent.
22. Request for Interfund Loan, UNR
President Milam requested approval of an interfund loan of
$26,440 from the Parking Permit Account to Central Services
to be used for the purchase of a Bond Copy Printer and
Sorter. Funds will be repaid monthly within a three-year
period from Central Service Sales Account. Chancellor
Humphrey recommended approval.
Dr. Lombardi moved approval. Motion seconded by Dr.
Anderson, carried without dissent.
23. Proposed Mining Lease Agreement
President Milam recalled that in 1971 Dr. Peter J. Kapo and
Mrs. Alice Mae Clymer gave 628 acres in the Valmy Mining
District, Humboldt County, to UNR, without restrictions as
to its use or disposition. He reported that Vice President
Pine has negotiated with Mr. Donald J. Decker for a lease/
purchase of the 628 acres for an annual payment of $628 plus
5% of any mineral production. The lease would be for a ten-
year period, renewable upon approval by the Board. Should
payments and royalties reach a total of $125,600, the land
would be deeded to Mr. Decker. A copy of the proposed lease
agreement was included with the agenda (identified as Ref.
23 and filed with permanent minutes).
Chancellor Humphrey recommended that the propery be adver-
tised for lease/purchase and that if no superior bid is
received this negotiated lease/purchase agreement with Mr.
Decker be considered as approved by the Board, subject to
concurrence by the Governor.
Mr. Ross moved approval of the Chancellor's recommendation
that the sale or lease of the property be advertised, but
requested that the results be brought back to the Board for
approval. Motion seconded by Dr. Lombardi, carried without
dissent.
It was understood that additional information concerning
the land and its potential use and estimated value would be
brought back to the Board at the same time as the bid re-
sults are submitted.
24. Authority to Purchase Property
President Milam reported that Mr. Ross Barker has offered to
sell his home at 1137 Evans Avenue to the University. This
property is on the west side of Evans Avenue, within the
area previously designated as a priority for purchase as it
becomes available. The property was appraised by the Uni-
versity July, 1975 and that appraisal is being updated.
President Milam and Chancellor Humphrey requested permission
to purchase the property at an amount not to exceed its
appraised value.
Miss Thompson moved approval. Motion seconded by Dr.
Lombardi, carried without dissent.
25. Medical Malpractice Insurance
Miss Stephanie Siri, Director of Internal Audit, reported
that the UNS has had total liability insurance coverage
from Pacific Insurance Company for the past three years
ending August 14, 1976 at a cost of $13,042 for this past
year. Beginning in February, 1976 Internal Audit began
gathering information in anticipation of having to renew
the UNS comprehensive liability policy. On August 1, 1976
the University was notified by Pacific Insurance that they
would not renew the medical malpractice coverage. By
August 14, 1976 basic general liability insurance was se-
cured for one year at a premium cost of $28,052, and blanket
liability insurance for students and faculty in the nursing,
medical technology, radiologic technology, dental hygiene,
and physical therapy programs at a premium cost of $15,867;
however, the University was unable to find a market for the
UNR and UNLV Health Services and the UNR Medical School. At
that time, the Nevada Medical Liability Insurance Associa-
tion indicated its willingness to consider writing the need-
ed medical malpractice insurance, but at its meeting on
August 26, 1976 rejected the University's application for
coverage. Subsequently, the University's agent of record,
Mr. Larry Kees, representing Nevada Independent Insurance
Agents, contacted 17 companies in an attempt to buy medical
malpractice insurance, with the following results:
Not Interested
1) Fireman's Fund
2) Hartford Insurance Company
3) Nevada Medical Liability Association
4) Pacific Insurance Company
5) Maginnis & Associates
6) Travelers Insurance Company
7) St. Paul Fire & Marine
8) Argonaut Insurance Company
9) Professional Buyers Guild, Inc.
Still Considering Coverage
10) Derek Ware Insurance Brokers
11) Ambassador Insurance Company
12) Cambridge General Agency
13) Glacier General Assurance Company
14) Farmers Insurance Group (Truck Insurance Exchange)
Not Considering Coverage
15) M. J. Hall & Company
16) Aetna Insurance Company
Not an Insurance Market
17) American College Health Association
Miss Siri reported that the University currently has a bind-
er on the UNR and UNLV Health Services which expires Septem-
ber 3, 1976; however, the UNR Medical School is not insured
for medical malpractice at this time.
Chancellor Humphrey stated that the University will continue
to pursue its search for medical malpractice coverage for
the UNR and UNLV Health Services and the UNR Medical School;
however, he noted, it is quite possible that it will not
find such coverage. In that event, he requested authority
from the Board to implement a self-insurance program for
primary coverage up to $500,000, at which point excess lia-
bility coverage of $5 million is believed to be available.
Dr. Humphrey suggested that the only alternative is to re-
duce the risk by closing the UNR and UNLV Health Services,
either immediately by refunding the health service fee to
students, or at the end of the Fall, 1976 semester. He
pointed out that the only alternative for the UNR Medical
School is self-insurance.
Chancellor Humphrey recommended that immediate funding for
such a self-insurance program be provided by paying into an
insurance fund from the following sources:
Board of Regents Special Projects Fund $ 50,000
UNR Insurance Account Surplus 100,000
Additional contributions would be made to the fund as monies
are avilable to bring the self-insurance fund to the needed
balance of $500,000. An amount will be determined for pay-
ment by UNLV Health Service; however, it is a minor part of
the risk. The fund would be invested separately and inter-
est generated would remain in the fund. Dr. Humphrey added
that the self insurance fund would respond to the extent of
legal obligation which is determined to exist, considering
the $25,000 limitation which may be applicable as a result
of the State having waived the defense of sovereign immuni-
ty up to that account.
Mrs. Fong moved approval of the Chancellor's recommendation
with the stipulation that the allocation from the Board of
Regents Special Projects Fund would be considered a loan to
be repaid after the self-insurance fund reaches the required
$500,000. Motion seconded by Mr. Ross, carried without
dissent.
26. Distribution of Dimmick Bequest
President Milam recalled that the University had received
$399,493 from the estate of Maud F. Dimmick "...to be used
and devoted by the Board of Regents of said institution, on
the Reno Campus, to such purposes as may be determined in
the sole discretion of said Board of Regents, provided, how-
ever, that if practical and consistent with the needs of the
University, it is my desire that the residue of my estate be
used by said Board of Regents for the following purposes:
"1. 3/4 thereof for the purpose of erecting and equipping,
aiding in erecting and equipping, a student infirmary.
"2. 1/4 thereof to a fund for investment and the income
thereof for a scholarship or scholarships for industri-
ous, ambitious, conscientious and worthy, deserving
students.
"As is indicated above, it is my intention in making this
gift to the University of Nevada, to leave to the good judg-
ment of the Board of Regents, all questions regarding the
administration and application of said gift since it is my
belief that their decisions will be most beneficial and pro-
ductive to the University."
President Milam noted that in conformity the Board has found
that as was "practical and consistent with the needs of the
University", 1/4 of the bequest was used to establish the
"Maud F. Dimmick Scholarship Fund". That endowment fund
currently has a book value of $99,495.11 and there was
$4,668.21 of income available this Fall for scholarship
distribution. There is $347,606.77 (original bequest less
amount put in endowment, plus interim earnings) currently
available.
Dr. Milam requested that $147,606.77 of this total be used
for the Student Health Services relocation and $200,000 be
dedicated to the construction of Phase III of the Anderson
Health Sciences building. He recalled that in July, 1975
the School of Medical Sciences received a Federal grant of
$700,000 for construction, subject to providing $300,000
in matching funds. The faculty and Administration of the
School of Medical Sciences have worked diligently to secure
this amount; however, to date only $100,000 has been secured
and the deadline is approaching. Chancellor Humphrey
recommended approval.
Dr. Lombardi moved approval. Motion seconded by Dr.
Anderson, carried without dissent.
27. Collective Bargaining
Chancellor Humphrey recalled that earlier this year the
National Society of Professors petitioned for a representa-
tional election at UNLV for collective bargaining purposes.
In conformity with the regulations of the Board of Regents,
that petition was rejected. NSP appealed to the Board and
the Chancellor's decision was upheld. Dr. Humphrey noted
that one argument of NSP was that UNLV and UNR should not be
in the same bargaining unit. For these two Divisions to be
in separate units would require amendment of the Board's
regulations. Therefore, Chancellor Humphrey suggested that
the Board once again review the question of whether or not
UNR and UNLV should be in separate bargaining units. In
preparation for this consideration by the Board, Chancellor
Humphrey requested that the UNLV and UNR Senates, and any
other Senates interested, address themselves to this problem
and report their recommendations in time for inclusion on
the November Board of Regents agenda.
28. New Business
(1) Miss Mason stated that she would like to see a new
report from all of the University's affirmative action
officers, with the report to include:
a. How future promotions will be handled;
b. Recruiting procedures;
c. What changes have occurred;
d. Number of women; and tenure ratio between men and
women; and salary ratio between men and women.
It was agreed that this would come back to the November
meeting.
(2) Miss Mason also requested a report concerning what
classes are offered after 5:00 P.M. on each of the
Campuses, what kind of improvement in these offerings
is planned, and an answer to the question of whether
a student can get a degree by attending only evening
classes. It was noted that President Milam had pro-
vided such a report in July.
President Baepler responded by stating that UNLV does
not plan to add bachelor's degree programs to its
evening offerings.
(3) Mr. Ross asked for a report on the status of the Mac
Millan bequest. Chancellor Humphrey reported that a
hearing was scheduled in Reno District Court but was
postponed because of a conflict with the judge's vaca-
tion. The hearing will be rescheduled. Mr. Ross asked
that he be informed of the date when the rescheduling
has been done.
(4) Mr. James Buchanan commented concerning a Federal pub-
lic works bill which would provide Nevada with $10
million. He asked that the University look into this
to see if there are any of its projects which would
qualify. Chancellor Humphrey reported that Mr. Harry
Wood is already looking into the matter.
(5) Mrs. Fong asked Dr. Baepler to provide her with infor-
mation concerning the amount of University funds used
in the voter assistance program presently being con-
ducted. Dr. Baepler stated that no University funds
were involved.
(6) Mr. James Buchanan stated that he had received infor-
mation that the Review-Journal building in Las Vegas
is for sale and asked if some determination could be
made concerning the University's interest in purchas-
ing. Dr. Donnelly agreed to look into it.
The Action Agenda was completed and the Information Agenda sub-
mitted. The Information Agenda is on file in the Chancellor's
Office and contained the following items:
(1) Report of Purchases in Excess of $8,000
(2) Report of Disciplinary Cases, CCD
(3) Report of Foreign Travel
(4) Report of Fund Transfers
(5) Board of Regents Special Projects Account Balance
(6) Abstracts of MSM Press Releases
(7) Progress of University Projects
(8) Status Report, University of Nevada Projects
(9) Additional Report of Fund Transfers
The meeting adjourned at 4:40 P.M.
Mrs. Bonnie M. Smotony
Secretary of the Board
09-03-1976