09/10/1987

UCCSN Board of Regents' Meeting Minutes
September 10-11, 1987








09-10-1987

Pages 1-25



BOARD OF REGENTS

UNIVERSITY OF NEVADA SYSTEM

September 10-11, 1987



The Board of Regents met on the above date in the Pine Auditorium

Student Union, University of Nevada-Reno.



Members present: Mrs. June F. Whitley, Chairman

Mr. James Eardley

Mr. Joseph M. Foley

Mrs. Dorothy S. Gallagher

Mrs. Joan Kenney

Mr. Daniel J. Klaich

Mrs. Jo Ann Sheerin

Mrs. Carolyn M. Sparks



Members absent: Mr. Chris Karamanos



Others present: Chancellor Mark H. Dawson

President William Berg, NNCC

President Anthony Calabro, WNCC

President Joseph Crowley, UNR

President John Gwaltney, TMCC

President Robert Maxson, UNLV

President Paul Meacham, CCCC

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 Chairs Patty Crookham (NNCC),

Frank Hartigan (UNR), Beverly Funk (CCCC), Bill Marchant (UNLV),

Dale Pugsley (WNCC), Steve Wheatcraft (DRI), David Wilkins (TMCC)

and Jim Williams (Unit), and Student Association Officers.



The meeting was called to order by Chairman Whitley at 10:40 A.M.

on Thursday, September 10, 1987.



1. Introductions



President Berg introduced newly elected Faculty Senate

Chairman Ms. Patty Crookham.



President Meacham introduced Faculty Senate Chairman Beverly

Funk, newly elected ASCC President Lee Wilhelm and newly

appointed Dean of Educational Services Herbert E. Peebles.



President Crowley introduced newly appointed Vice President

of Academic Affairs Dennis Brown.



President Maxson introduced Faculty Senate Chairman Bill

Marchant and CSUN President Kirk Hendrick.



2. Chairman's Report



Chairman Whitley appointed the following committees for

1987-88:



Academic Affairs Committee



Joseph M. Foley, Chairman

James Eardley

Jo Ann Sheerin

Carolyn M. Sparks



Audit Committee



Carolyn M. Sparks, Chairman

Chris Karamanos

Jo Ann Sheerin



Budget and Finance Committee



James Eardley, Chairman

Dorothy S. Gallagher

Chris Karamanos

Joan Kenney



Investment Committee



Daniel J. Klaich, Chairman

Dorothy S. Gallagher

Joan Kenney



Legislative Liaison Committee



Daniel J. Klaich, Chairman

(Other members will be selected at a later date.)



DRI Liaison Committee



Joseph M. Foley, Chairman

Dorothy S. Gallagher

Joan Kenney

Arthur Anderson

Fred Gibson

John Goolsby

Joseph Murray



Because health care concerns have become a high priority of

Nevada and the Board of Regents, Chairman Whitley has cre-

ated a new Regent post, "Health Care Liaison Officer", and

assigned Regent Carolyn M. Sparks to that appointment.



Chairman Whitley announced that the Regents Workshop will be held

September 30 through October 2, 1987 in Laughlin, Nevada.



3. Approved the Consent Agenda



Approved the Consent Agenda (identified as Ref. A, and filed

with the permanent minutes) containing the following items:



(1) Approved the minutes of the special meeting held June

4, 1987, the regular meeting held June 25-26, 1987,

the special teleconference meeting held July 29, 1987,

and the special teleconference meeting held August 17,

1987.



(2) Approved the gifts, grants and contracts listed in

Ref. C-1, filed with the permanent minutes.



(3) Approved the addition of the following persons to the

WNCC Advisory Board:



Weldon J. Lary, Carson City

Robert Scott, Carson City



(4) Approved the continuation of tenure for Dr. James V.

Taranik as Professor of Geology and Geophysics in the

Department of Geological Sciences at UNR. Should Dr.

Taranik exercise the right of tenure at UNR, the sal-

ary would be commensurate with the top of the pay

model for a Professor of a B contract.



(5) Approved an additional year of leave without pay for

Michael S. Owens, DRI. He has been associated with

DRI for approximately 20 years and has served the In-

stitute well. He will be continuing his personal and

professional development during this time.



(6) Approved an additional housing allowance of $12,000

per year for Chancellor Dawson for housing in Las

Vegas. At its June, 1987 meeting, the Board author-

ized the Chancellor to seek a residence in the Las

Vegas area with the understanding that the housing

allowance would be increased at the time of purchase.



(7) Approved a Handbook change, Title 4, Chapter 1, Sec-

tion 9.4, Host Funds:



4. Host Funds



An annual host account of up to $5000 for the Chairman

of the Board of Regents and up to $2500 for the re-

maining members of the Board of Regents will be estab-

lished, to be used for official UNS hosting. These

accounts will be used to reimburse Regents for host

expenditure claims submitted to the Secretary of the

Board. Any amount above those stipulated must be ap-

proved by the Board.



(8) Approved the requirements for the UNS Early Retirement

Incentive Program for a 1-year notice of intent to

retire be waived for John H. Schilling in order for

Mr. Schilling to retire from UNR under the early re-

tirement program on October 1, 1987. Also approved

that Mr. Schilling be awarded the title Economic

Geologist Emeritus, to take effect upon his retire-

ment on October 1, 1987.



(9) Approved the addition of the following persons to the

Statewide Advisory Council on Water Resources Research

at DRI:



Karen Baggett, Carson City

Jo Anne C. Burrows, Las Vegas

William Carswell, Carson City

Mark Chilton, Elko

Lew Dodgion, Carson City

Myron Goldsworthy, Lovelock

M. Kent Hafen, Pahrump

Edward Hallenbeck, Boulder City

James Hawke, Carson City

Karen Hayes, Las Vegas

Dave Houston, Sacramento

Lawrence E. Jacobsen, Minden

Carl Johnson, Carson City

Omer L. King, Jr., Reno

Peter Lent, Reno

Donald Mahin, Reno

Leslie G. Mc Million, Las Vegas

Charles L. Meyer, Las Vegas

Peter G. Morros, Carson City

Wendell Newman, Carson City

Pat Pine, Las Vegas

Phil Seges, Reno

Donald (Pat) Shalmy, Las Vegas

Jack L. Stonehocker, Las Vegas

Charlie F. Vaughn, Las Vegas

Jim Weishaupt, Yerington

Roland Westegard, Carson City

Thomas R. C. Wilson, III, Reno



(10) Approved the addition of the following person to the

CCCC Advisory Board:



Richard Bonar



Mr. Bonar will replace Mr. Denny Weddle.



(11) Approved the following interlocal agreements:



A. UNS Board of Regents/UNR and Nevada State Library

and Archives



Effective: May 1 to November 30, 1987

Amount : Not to exceed $4,050

Purpose : Produce a Statewide literacy needs

assessment to determine which areas

of the State require new or expanded

programs for adult non-readers.



B. UNS Board of Regents/UNR College of Education and

Nevada State Library and Archives



Effective: August 1, 1987 to January 31, 1988

Amount : Not to exceed $950

Purpose : Produce a Manual on the Use of Oral

History as an Instructional Technique.



C. UNS Board of Regents/UN School of Medicine and

Department of Human Resources, Division of Mental

Health and Mental Retardation



Effective: July 1, 1987 to June 30, 1988 with re-

newal options

Amount : Annualized maximum of $388,153

Purpose : Employment for 4 persons for the Di-

vision who shall also serve as faculty

for the School to provide clinical ex-

perience and training to the School's

students:



1 Medical Coordinator at Nevada Mental

Health Institute

1 Sr. Psychiatrist at Lake's Crossing

Center

2 Staff Psychiatrists at Nevada Mental

Health Institute



D. UNS Board of Regents/TMCC and Nevada State Health

Division, Department of Human Resources



Effective: August 1, 1987 to June 30, 1988 with

possible renewal

Amount : Maximum $17,000

Purpose : To provide Emergency Medical Techni-

cians training.



E. UNS Board of Regents/UNR College of Business/

Bureau of Business and Economic Research and

Nevada Commission on Tourism



Effective: August 14, 1987 for one year

Amount : Not to exceed $5,120

Purpose : To collect, organize and report data

in order to analyze and track trends

in Nevada tourism.



F. UNS Board of Regents/UNR and Nevada Department of

Wildlife



Effective: July 1, 1987 to June 30, 1988

Amount : Not to exceed $12,500

Purpose : Special problems in wildlife manage-

ment.



G. UNS Board of Regents/UNLV Center for Business and

Economic Research and State Job Training Office



Effective: September 1, 1987 to August 31, 1988

Amount : Not to exceed $26,118.40

Purpose : Follow up survey on all JPTA Title III

and Adult Titles II A and Incentive

Grant participants.



H. UNS Board of Regents/NNCC and Nevada State Health

Division, Department of Human Resources



Effective: August 31, 1987 to June 30, 1988

Amount : Maximum $15,750

Purpose : Emergency Medical Technican training.



I. UNS Board of Regents/UNR Department of Range,

Wildlife and Forestry and Nevada Department of

Wildlife



Effective: August 1, 1987 to June 30, 1988

Amount : Not to exceed $92,655

Purpose : Measure relationship between root

structure of riparian vegetation and

stream channel erosion.



J. UNS Board of Regents/UNR Bureau of Business and

Economic Research and Nevada Department of Taxa-

tion



Effective: August 25 to December 31, 1987

Amount : Not to exceed $5,000

Purpose : Prepare Nevada's official population

estimate for 1987.



Mr. Klaich moved adoption of the the Consent Agenda with the

authority to change the order of items as specified through-

out the meeting. Mrs. Gallagher seconded. Motion carried.



4. Chancellor's Report



Chancellor Dawson reported on the following issues:



The agenda for the Regents Workshop, scheduled for September

30 through October 2, 1987 in Laughlin, Nevada was outlined.



UNS officials and staff representing several Campuses have

volunteered to assist CCCC when it hosts the 1988 national

convention of the American Association of Community and

Junior Colleges (AACJC). It will be held April 23-27, 1988

at Caesars Palace in Las Vegas.



The Chancellor's Office has offered to assit Nevada lawmak-

ers who are hosting the 1988 National Conference of State

Legislatures (NCSL) July 24-29, 1988. Thousands of State

lawmakers from throughout the nation will attend the week-

long event at Bally's in Reno.



A Systemwide "procedures" committee will be appointed by the

Chancellor to develop guidelines and a standard format for

Campus applications of grants from the estate fund. This

procedures committee will consist of 3 Presidents (1 Univer-

sity, 1 Community College, 1 Desert Research Institute), 5

faculty (2 Universities, 2 Community Colleges, 1 DRI), and

2 students (1 University, 1 Community College) representing

all State regions. Its recommendations will be forwarded

through the Chancellor to the UNS Estate Fund Advisory Com-

mittee when it is established. Composition of the UNS Es-

tate Fund Advisory Committee is defined by State law. Be-

cause no funds will be available until 1989, UNS has ample

time to develop a well-organized system for considering re-

quests for funds.



A search committee for the UNS Computer Center Executive

Director position will be formed soon; it will be composed

of 1 member from each Campus selected by the President, and

3 members from the UNSCC professional staff and a Chairman,

appointed by the Chancellor. A job description for the

position was developed by the Chancellor's Office in con-

sultation with all Campuses. It is anticipated a final

recommendation will be presented for consideration at the

January, 1988 Board meeting.



An equipment committee for the Chancellor's Office has been

formed. Public Information Director Pamela Galloway is the

Chairman of the Committee. The Committee is reviewing the

current equipment and updated equipment needs for the Chan-

cellor's Office.



Two UNS representatives have been appointed to the State

General Services Task Force Studying Statewide Telecommuni-

cations: Vice Chancellor Warren Fox, who is also Acting

Director of the Computer Center, and Dick Belaustegui, UNS

Telecommunications Network Director.



The newly formed Systemwide Affirmative Action Committee

has met to develop a common reporting format and will report

to Regents at their October Board meeting. In addition,

affirmative action concerns will receive high priority at

the annual Regents Workshop.



Philanthropist Claude Howard has offered to loan UNS funds

necessary to increase CCCC's new Allied Health Education

Center from 12,000 to 22,000 square feet.



The new facility, located on West Charleston Street in Las

Vegas, is situated on 80 acres of land given to CCCC by the

federal government to house education facilities. Chancel-

lor Dawson commended Regent Joseph Foley for his assistance

in planning development of the property, which could address

multi-Campus health care programs including the UNS School

of Medicine's new Family Clinic. President Meacham is de-

veloping a Master Plan for the site for presentation to

Regents at their October Board meeting in Las Vegas.



In a related matter, the Board of Regents has responded to

growing concerns about Nevada health care as it relates to

education demands by establishing a Systemwide task force.

That group will present a progress report on its 1987 activ-

ities -- including efforts o resolve nursing articulation

(transfer of credits) between Nevada's Community Colleges

and Universities -- at the Regents January, 1988 meeting.



Representatives of the National Science Foundation and con-

gressional aids conducted a site visit of NSF-funded re-

search projects this Summer, including newly funded EPSCoR

(Experimental Program to Stimulate Competitive Research)

projects. NSF representatives described Nevada as "the

best EPSCoR State", he said.



Chancellor Dawson described several other "outreach" efforts

of the Chancellor's Office: the staff is working with the

Nevada Economic Development Commission to develop a collage

of photographs representating all 7 UNS institutions which

will be displayed in Nevada's new office in Japan. The

office is hosting a workshop for some 100 secretaries from

throughout UNS, to be held September 18, 1987. That effort

is being directed by Mary Lou Moser, Board Secretary.



Mrs. Gallagher commended Chancellor Dawson, Dr. Art Anderson

and others for their involvement in the EPSCoR projects, as

a fine example of inter-institution cooperation.



Mr. Klaich requested clarification that the estate fund will

not dovetail with the budget process, and that it will truly

be utilized as an enhancement fund. Chancellor Dawson con-

curred.



5. Approved the Report on Annual Performance Analysis of the

UNS Permanent Endowment Pool



Mrs. Edna Brigham, Endowment Director, and Mr. Matt Lincoln,

Cambridge Associates, presented the Annual Performance Anal-

ysis of the UNS Permanent Endowment Pool, filed with the

permanent minutes as Ref. F. Mrs. Janet Mac Donald, Deputy

Treasurer, presented the Operating Funds Performance Report,

filed in the Regents Office.



The University of Nevada System's Permanent Endowment Pool

increased by 25.3% in total return for the fiscal year 1986-

87. The Board of Regents reviewed the pool's annual invest-

ment performance which shows a cumulative total return of

119.3% since its inception 3 years ago. Mrs. Brigham stated

that the $20 million portfolio pooled in 1984 is now worth

$46 million, adding that it consistently outperforms Stand-

ard & Poor 500 and the Shearson-Lehman composite.



The pool is owned on a shares basis by the 7 UNS institu-

tions to boost returns, and 5% of the pool's market value

is returned to institutions early. Most of the endowed

funds are earmarked for scholarships, meaning students bene-

fit directly from the pool's growth.



The summary of the UNS Endowment Annual Performance Review

is as follows:



1. The 1986-87 endowment fund's results have exceeded our

objectives as stock and cash reserves have outperformed

the S & P 500 by 4.7% and bonds and reserves have out-

performed the Shearson Lehman Composite by 2.9%.



2. Both Sanford C. Bernstein and Concord Capital surpassed

their performance standards. Pacific Financial Research

was hired in February, 1987 and to date has under-per-

formed its performance standards.



3. Over the past year and a half the endowment has been di-

versified into both foreign stocks and bonds. These in-

vestments have provided returns superior to U. S. stocks

and bonds and increased the total fund's performance.



4. Over the full 3-year period since July 1, 1984, the

total fund has exceeded all of its objectives, outper-

forming an index fund portfolio by 14.1% and outper-

forming a large majority of other endowment funds.



5. Sanford C. Bernstein has surpassed its objectives while

Concord Capital equaled its objectives. Both managers

outperformed a large majority of other institutional

quality investment managers over the 3-year period.



6. The endowment's performance was hurt by the combined

performance of First Interstate and Pacific Financial.

To an extent, both managers are intended to be defensive

and provide protection in down markets that we have not

experienced over the past 3 years. However, the cost

of this insurance has been high.



Mrs. Janet Mac Donald reported that investment income for

operating funds averaged 8.49% in 1986-87 at a time when 90-

day treasury bills averaged 5.69%. She reported further

that since the beginning of the new investment and distri-

bution of income policy in 1984-85, daily cash balances had

increased from $45.3 million to $53.7 million in 1986-87.



6. Approved University Marshal, UNR



Approved the appointment of Mr. Rollan Doyle Melton to serve

as the Marshal of the University of Nevada-Reno. Mr. Melton

will replace Dr. Alessandro Dandini, who retired in May,

1987 after having served as Marshal for more than 25 years.



Mr. Foley moved approval of the appointment of Mr. Rollan

Doyle Melton as the Marshal of the University of Nevada-

Reno. Mrs. Gallagher seconded. Motion carried.



Chairman Whitley relinquished the gavel to Vice Chairman Galla-

gher.



7. Approved Changes in the Professional Employees Retirement

Plan (TIAA-CREF)



Approved the following:



A. Termination of the present Section 403(b) retirement

plan known as UNS TIAA-CREF Retirement Plan, as of De-

cember 31, 1987.



B. Establishment of a new Section 401(a) retirement plan

with a Section 414(h)(2) "pick-up" as of January 1, 1988

to be known as the UNS Defined Contribution Retirement

Plan.



C. Authorize System Officers to proceed with implemtation

of the plan concurrent with the filing of an Application

for Determination for Defined Contribution plan with the

Internal Revenue Service.



The current University of Nevada System TIAA-CREF Retirement

Plan is a contributory "defined contribution" plan, with

both the UNS and the employee each contributing 9.125% of

salary to the plan and with legislatively scheduled in-

creases up to 10% over the next 2 years. All UNS profes-

sional employees, other than those who participate in the

Nevada Public Employees Retirement System (PERS), are re-

quired to particpate in this plan immediately upon employ-

ment.



The plan operates under Internal Revenue Code Section 403(b)

and, as such, employee particpants may elect to have their

required contributions made on a tax-deferred basis under

agreements for salary reduction. Currently, the great

majority of participants have elected to have their contri-

butions remitted on this basis.



The System Compensation Committee, in consultation with

TIAA-CREF (the currently retirement plan fund sponsor), is

proposing that a new retirement plan be established as of

January 1, 1988. The plan, to be known as the University

of Nevada System Defined Contribution Retirement Plan, would

have the same provisions as the current plan; however, the

plan would be "qualified" under Internal Revenue Code Sec-

tion 401(a) and would provide for a UNS "pick-up" of requir-

ed employee contributions in accordance with Internal Reve-

nue Code Section 414(h)(2). The Board of Regents has the

authority to establish such a plan under NRS 286.808.



Under Section 414(h)(2), the UNS would pay employee contri-

butions as well as the employer contributions. Under Nevada

law, an employee's gross salary would be required to be re-

duced by the amount of the "pick-up". This gross salary

before reduction would be retained as the yardstick for

measuring all benefits related to salary, including salary

increases. It is important to mention that, unlike the cur-

rent plan, salary reduction under Section 414(h)(2) would

be required of all employee participants and that all pro-

fessional employees, except those participating in PERS,

would be required to participate.



A qualified plan has 2 features not available under a Sec-

tion 403(b) retirement plan. These features are: 5-Year

Forwared Income Averaging: Under current law, a spouse

beneficiary of an employee participant may be eligible for

5-year forward income averaging if he or she received a

lump sum distribution on account of the participant's death.



Higher Maximum Tax-Deferred Annuity Contributions: By re-

moving the UNS retirement plan from the requirements of Sec-

tion 403(b), an employee participating in a qualified plan

can generally make larger contributions to other Section

403(b) tax-deferred annuities. This is because employer

contributions to a qualified plan for the current taxable

year would no longer be included in the maximum amount that

an individual would be permitted to make to Section 403(b)

tax-deferred annuities.



The System Compensation Committee has recommended to the

Chancellor the termination of the present Section 403(b)

retirement plan as of December 31, 1987, the establishment

of Section 401(a) retirement plan with a Section 414(h)(2)

"pick-up" as of January 1, 1988, and that authorization be

given to the System Officers to proceed with the implementa-

tion of the plan concurrent with the filing of the plan doc-

ument with the Internal Revenue Service for purposes of ob-

taining a favorable "letter of determination". The plan

probably would be implemented on January 1, 1988 without

specific IRS approval, since the IRS is backlogged from 1-2

years in issuing "letters of determination". Nonetheless,

TIAA-CREF has encouraged the UNS to proceed as IRS approval

is almost certain to be given. An IRS contact has unof-

ficially confirmed that this would be acceptable procedure.



A copy of the plan document for the proposed Section 401(a)

retirement plan is contained in Ref. B, filed in the Regents

Office. General Counsel Klasic has reviewed the proposal

and concurs with the recommendation.



Mr. Gordy Gochnour, System Compensation Committee Chairman,

reaffirmed the proposed changes in the Professional Employ-

ees Retirement Plan (TIAA-CREF) by stating that this will be

a benefit to UNS employees and will allow employees to tax

shelter more of their income than currently available.



Mrs. Kenney moved approval of the changes in the Profession-

al Employees Retirement Plan (TIAA-CREF). Mrs. Sparks sec-

onded. Motion carried.



Chairman Whitley returned and resumed the gavel.



8. Approved Implementation of Weather Modification Program, DRI



Approved the implementation of the DRI Weather Modification

Program for the Winter of 1987-88 in the amount of $324,890.

The 1987 Nevada State Legislature authorized the Weather

Modification Program with the stipulation that DRI seek the

funding should there be a need. Representatives from vari-

ous federal, State and county agencies met in August, 1987

and have determined the program should begin in early Novem-

ber. Ref. E is filed in the Regents Office.



Also, the Regents authorized DRI to seek approval and fund-

ing from the Board of Examiners and the Interim Finance

Committee.



Mrs. Sheerin moved approval of the implementation of the DRI

Weather Modification Program for 1987-88 in the amount of

$324,890, and approved DRI to seek the necessary funding for

the program for the 1988-89 Winter as well. Mr. Foley sec-

onded. Motion carried.



9. Approved the Naming of Building, NNCC



Approved the naming of the Phase III addition at NNCC the

William J. Berg Student Services Center in honor of retiring

President William J. Berg. The facility will house Student

Services, faculty offices, a conference room and a large

multi-purpose facility that can serve as a theater.



Mrs. Gallagher moved approval of the naming of the Phase III

addition at NNCC the Berg Student Services Center. Mrs.

Kenney seconded. Motion carried.



10. Approved the Revision, TIAA-CREF



Approved a revision to the current TIAA-CREF Retirement Plan

which will be in effect until December 31, 1987. This re-

vision encompasses the increase in contributions approved in

the 1987 Session of the State Legislature for all State em-

ployees. Ref. C is filed in the Regents Office. General

Counsel Klasic has reviewed the revision and concurs with

the request.



Mrs. Gallagher moved approval of the revision to the current

TIAA-CREF Retirement Plan. Mrs. Kenney seconded. Motion

carried.



11. Approved Resolution, UNLV Parking



Approved the following resolution which designates the UNLV

parking lot financing as a qualified tax-exempt obligation

under Section 265 of the Internal Revenue Code of 1986.

Action is being taken at the request of Mr. John Swanseid,

UNS Bond Counsel. At its June, 1987 meeting, the Board

authorized UNLV to obtain a loan to complete the parking

at the Thomas and Mack Center. A loan has been obtained

for $1.2 million from First Interstate Bank.



RESOLUTION #87-7



WHEREAS, the University of Nevada System (the "Univer-

sity") anticipates issuing less than $10,000,000 in

obligations the interest on which is exempt from fed-

eral income taxation during calendar year 1987; and



WHEREAS, the University intends to borrow $1,200,000

from First Interstate Bank (the "Bank") for the purpose

of financing certain improvements at the University of

Nevada, Las Vegas, such borrowing to be evidenced by a

note signed by the appropriate officials at the Uni-

versity (the "Note"); and



WHEREAS, the University will pay a more favorable in-

terest rate on the Note if the University designates

the Note as a "Qualified Tax-Exempt Obligation" under

Section 265(b)(3) of the Internal Revenue Code of 1986,

as amended.



NOW, THEREFORE, BE IT RESOLVED by the Board of Regents

of the University of Nevada System:



Section 1. The Note is hereby designated as a qualified

tax-exempt obligation pursuant to Section 265(b)(3) of

the Internal Revenue Code of 1986, as amended.



Section 2. This resolution shall be effective on its

passage and approval.



Mrs. Kenney moved approval of the resolution which desig-

nates the UNLV parking lot financing as a qualified tax-

exempt obligation. Mrs. Sparks seconded. Motion carried.



12. Report and Recommendations on UNS Banking Services



Approved a 6-year cycle on competitive bidding for UNS

checking account banking services.



Nearly 3 years ago, all UNS checking account banking serv-

ices were consolidated with the result of substantially in-

creased cash reserves, investment income and quality of in-

vestments. At the time of consolidation, a 3-year cycle

was proposed for competition bidding for these services.



The Deputy Treasurer, Janet Mac Donald, and the UNS Control-

lers recommended a 6-year cycle for the following reasons:



1) Changing banks is very costly and therefore offsets some

of the benefits of the competitive bid.



2) The UNS is installing a new payroll system which relies

heavily on banking services. A change of bnaks at the

same time the payroll system is changed could be catas-

trophic.



3) It takes a year to close old bank accounts and an ex-

tended period of time to institute a new banking service

due to the volume of UNS business; i. e., on the average

of 600 checks per day.



4) The UNS has gone to competitive bid for credit card

processing services.



For the record, Mrs. Gallagher abstained from the discussion

and the voting because of a conflict of interest.



Mr. Klaich moved approval of a 6-year cycle on a competitive

bidding for UNS checking account banking services. Mr.

Eardley seconded.



Mrs. Sheerin recommended that the word "cycle" be amended to

read "review".



Mr. Klaich moved approval of the amendment. Mr. Eardley

seconded.



Motion carried.



13. Approved Addition to Handbook, Part-Time Faculty Fee Waiver,

Community Colleges



Approved an addition to the Handbook Title 4, Chapter 17,

Fee Waiver for Part-Time Faculty at the Community Colleges.



Eligible part-time professional faculty (eligibility to be

verified by their supervisor) receive a waiver of fees for

Community College credit classes up to the number of credit

hours the part-time faculty member has taught the previous

or current semester. The eligibility based on credit hours

shall not be cumulative from semester to semester. Those

professional part-time faculty who do not teach must confer

with their supervisor to determine appropriate course equiv-

alency for their services. In no case will a supervisor

authorize more than a total of 6 credit hours of course

equivalency per semester for such service and the courses

must be taken at the College in which they teach.



Part-time professional faculty shall be permitted to regis-

ter for credit or audit in any credit course with the usual

limitations as noted below.



1. Courses may only be taken during the Fall and Spring

regular semesters and must be taken at the College where

employed.



2. Only those courses where space is available may be

taken.



3. Lab fees are not included in this waiver.



4. Part-time faculty members shall not be entitled to any

privileges usually associated with registration; e. g.,

student association membership, health service, inter-

collegiate athletic tickets.



Mrs. Sparks moved approval of the Handbook change regarding

Part-Time Faculty Fee Waivers at the Community Colleges.

Mrs. Kenney seconded. Motion carried.



Mr. Klaich requested that an annual report be made regard-

ing the part-time faculty fee waiver.



14. Report and Recommendations of the Academic Affairs Committee



A report and recommendations of the Academic Affairs Commit-

tee meeting, held September 10, 1987, were made by Regent

Joseph Foley, Chairman.



Chairman Foley requested that Mrs. Sheerin continue her ef-

forts on the telecommunications project.



NOTE: The following new program proposal received prior ap-

proval to follow the Phase I, II process. The Phase

I Proposal was approved by the Board in October 1986.



(1) Approved the Phase II Proposal for a BS in Medical

Technology at UNLV, as contained in Ref. AA-1, filed

in the Regents Office.



This program will prepare graduates for employment in

both public and private health facilities, including

hospitals, medical research organizations and private

clinics.



The curriculum will consist of 126 credits, with 30

required in science and mathematics, and 56 credits in

laboratory science courses. Admission to the program

will be limited to students who have earned a cumula-

tive 2.75 GPA, and a 2.3 GPA will be required for com-

pletion of the program.



The 1st-year budget is estimated at $111,648, which

will include 1 FTE faculty and $50,000 for equipment.

A total of $133,114 is requested for the 4th year, as

well as 3 FTE faculty. Existing facilities are ade-

quate at the present time.



Accreditation will be sought for the program from the

National Accrediting Agency or Clinical Laboratory

Science.



The development of a baccalaureat program in medical

technology will provide new students and professionals

an opportunity to earn a degree without leaving the

southern Nevada area. A consultant's report regarding

the proposed program notes that hospital-based pro-

grams are closing in order to cut costs, so there is

a greater need for Universities to offer this type of

program.



At the Academic Affairs Committee meeting where this

Phase I Proposal was approved, there was discussion

regarding this and other health care programs. A re-

quest was made for clarification of articulation of

this program with the Medical Laboratory Technology

program at CCCC. Included in the Phase II Proposal

is a chart which outlines the transfer of courses be-

tween CCCC and UNLV.



Mrs. Sheerin expressed her concern and suggested that

the Universities develop strong 3rd and 4th years, par-

ticularly when the 1st and 2nd year programs are avail-

able in the Community Colleges.



Mr. Foley moved approval of the Phase II Proposal for

a B. S. in Medical Technology at UNLV. Mrs. Kenney

seconded. Motion carried.



NOTE: The following new program proposal received prior

approval to follow the Phase I, II process. The

Phase I Proposal was approved by the Board in Decem-

ber, 1986.



(2) Approved the Phase II Proposal for a Ph. D. in English,

as contained in Ref. AA-2, filed in the Regents Office.



This degree will provide graduates with a general mas-

tery of British and American literatures, as well as

a special mastery of 2 or 3 fields within that range.

In addition, a minor in a related field will be com-

pleted. The program will be based on an existing M. A.

program.



Admission to the program will require an M. A. degree

in English, with at least 21 credits in English and

American literature, and a graduate GPA of 3.5 or bet-

ter. 30 credits beyond the M. A. degree will be re-

quired for completion. A reading knowledge of 2 for-

eign languages, or proficiency in 1 is also required

for graduation.



The annual budget required for implementing the pro-

gram is projected at $41,250 and will include 2 new

faculty positions, graduate assistants and library

acquisitions.



Currently, 22 courses are taught regularly at the

graduate level for the M. A. in English program. It

will be necessary to add only doctoral-level seminars,

independent study courses, and disseratation courses.



Existing facilities and equipment are adequate at

present. Both library books and periodicals will be

acquired over a period of time, according to priority

lists which are being developed.



A consultant was brought in to review the proposal and,

found both the faculty and program proposal impressive.



The Phase I Proposal was approved by the Board of Re-

gents in December, 1986.



Mr. Foley moved approval of the Phase II Proposal for a

Ph. D. in English at UNLV. Mrs. Sparks seconded. Mo-

tion carried.



The Committee requested for the next Academic Affairs Com-

mittee meeting that the new format for the addition or

change of new programs be reviewed.



Mrs. Sheerin expressed her disappointment in the Committee

for not accepting a 2 + 2 program with the B. S. in Medical

Technology at UNLV.



Mr. Foley expressed his appreciation to Mrs. Sheerin for

her past service on the Academic Affairs Committee.



15. Report and Recommendations of the Audit Committee



A report and recommendations of the Audit Committee meeting,

held September 10, 1987, were made by Regent Carolyn Sparks,

Chairman.



(1) Information Only - Internal Audit Director Sandi

Cardinal presented the follow-up report on the UNLV

Center for Survey Research audit.



(2) Information Only - Internal Audit Director Sandi

Cardinal presented the follow-up report on the UNLV

Personnel Department audit.



The Committee requested at the next meeting of the

Audit Committee an additional response regarding the

issue of discouraging people in applying for positions

at UNLV.



(3) Information Only - Internal Audit Director Sandi

Cardinal presented the follow-up report on the UNLV

Library Department audit.



Mrs. Sparks moved approval of the report and recommendations

of the Audit Committee. Mrs. Kenney seconded. Motion car-

ried.



16. Report and Recommendations of the Budget and Finance

Committee



A report and recommendations of the Budget and Finance Com-

mittee meeting, held September 10, 1987, were made by Regent

James Eardley, Chairman.



(1) Approved used of $33,500 from the Capital Improvement

Fee Fund as follows:



Fallon Campus $27,000

For the purpose of architectural fees and

renovation related to construction of the

new leased classroom facility.



Carson Campus $ 6,500

To be allocated for the purpose of addi-

tional phones for the Carson Campus and

Stewart Center, and miscellaneous instal-

lations in the Metal Technology building.



President Calabro informed the Board on the

status of the Stewart facilities by stating

the Legislature issued a line item budget

for WNCC to rent space to the State of Nevada

General Services. WNCC was one of the recipi-

ents of an original grant to use the space.



(2) Approved use of Capital Improvement Fee Funds for land-

scaping the William J. Berg Hall (Phase III building)

with the balance from the Capital Improvement Fee Funds

allocation for window coverings in the Phase III build-

ing.



Further, the Regents approved use of $15,000 of the

Capital Improvement Fee Funds for the placement of two

new trailers on the NNCC Campus.



(3) Approved the FY 88 Financial Plan for DRI as contained

in Ref. B-3, filed in the Regents Office.



(4) Approved the 1987-88 professional salary schedules for

academic and administrative faculty at UNR, as contain-

ed in Ref. B-4, filed in the Regents Office. They have

been constructed in accordance with the provisions of

the model approved by the UNS Board of Regents on June

27, 1985.



A lengthy discussion was held on the various salary

models throughout UNS. President Crowley stated that

UNR has established a Faculty Salary Equity Committee

which will continue to study and update the UNR salary

model schedules.



President Maxson informed the Board that UNLV is con-

sidering UNR's salary model schedule and he personally

feels that it is an outstanding model.



Mrs. Sparks requested that UNR's salary model schedule

be submitted to the Legislators for their information.



President Crowley stated that this schedule was adopted

with the support of the UNR Faculty Senate; that there

will always be problems, no matter what schedule is

used; and that this model will be studied in the next

months to determine where UNR is placed nationally on

the salary schedules. He impressed upon the Board that

if quality is essential in programs and institutions,

there must be competition in salaries given.



(5) Approved the following Self-Supporting Budgets at UNR:



UNR Health Service

1986-87 1987-88

Projected Budget

Actual Estimate

Revenues

Opening Account Balance $ 11,678 $ 25,229

Voluntary $40 per Semester Fee 214,271 260,480

Student Registration Fees 150,000 125,220

Judicial Colleges 4,300 4,300

Summer Session Fees 16,000 16,000

Miscellaneous Income 31,737 30,000

Other Sources 50,000 50,000

Student Services (Housing &

Dining Commons) 50,000 -0-

Total Source of Funds $527,986 $511,229



Expenditures

Professional Salaries

(FTE 2.10 - 1.94) $136,673 $130,472

Fringe Benefits 16,889 16,060

Classified Salaries

(FTE 8.75 - 7.52) 209,317 193,535

Fringe Benefits 42,734 40.448

Operating 95,551 99,175

Out-of-State Travel 1,593 2,600

Ending Account Balance 25,229 28,939

Total Use of Funds $527,986 $511,229



Griffin Endowment/History



Revenues

Opening Account Balance $ 47,193



Expenditures

Graduate Assistant Salary (FTE .50) $ 5,928

Fringe Benefits 72

Operating 5,000

Out-of-State Travel 6,193

Griffen Endowment (Principal) 30,000

Total Use of Funds $ 47,193



Indirect Cost Recoverty/Nutrition Program



Revenues

Opening Account Balance $ 8,426 $ 10,961

Indirect Cost 16,503 15,000

Total Source of Funds $ 24,929 $ 25,961



Expenditures

Professional Salaries (FTE .67) $ -0- $ 14,096

Fringe Benefits -0- 2,575

Classified Salaries 3,711 -0-

Fringe Benefits 1,646 -0-

Operating 8,471 9,290

Transfer Out 140 -0-

Ending Account Balance 10,961 -0-

Total Use of Funds $24,929 $ 25,961



Dean, Medical School Indirect Cost Recovery/

Administration



Revenues

Opening Account Balance $ 19,154 $ 39,894

Indirect Cost Recovery 35,000 40,000

Total Source of Funds $ 54,154 $ 79,894



Expenditures

Professional Salaries (FTE .10) $ -0- $ 8,159

Fringe Benefits -0- 995

Classified Salaries (FTE 1.50) 564 32,008

Fringe Benefits 157 9,554

Wages 355 4,500

Fringe Benefits 9 -0-

Operating 7,517 15,000

Out-of-State Travel 2,617 -0-

Transfer Out 3,041 -0-

Ending Account Balance 39,894 9,678

Total Use of Funds $ 54,154 $ 79,894



UNR News Bureau/Public Information



Revenues

Opening Account Balance $ 3,869 $ -0-

Revenue Source 23,768 -0-

Transfers Out -0- 32,309

Total Source of Funds $ 27,637 $ 32,309



Expenditures

Professional Salaries (FTE .84) $ -0- $ 14,969

Fringe Benefits -0- 3,451

Classfied Salaries (FTE 1.00) 15,722 10,747

Fringe Benefits 4,615 3,142

Wages 3,500 -0-

Fringe Benefits 42 -0-

Operating 2,800 -0-

Out-of-State Travel 1,000 -0-

*Total Use of Funds $ 27,679 $ 32,309



*Out of Balance



Mr. Eardley moved approval of the report and recommendations

of the Budget and Finance Committee. Mrs. Kenney seconded.

Motion carried.



17. Information Item: Report on Humanities Program Merger, UNR



At the June 4, 1987 meeting, authorization was given to

President Crowley to negotiate a merger of the Old College

PACE Humanities program into UNR. President Crowley report-

ed that the PACE Humanities program would be placed under

Continuing Education and that approximately $90,000 would be

supplemented from Old College for the 1st year and an addi-

tional $90,000 for the 2nd year. UNR will be reviewing the

possibilities of developing a new B. A. program, which would

include the PACE program. President Crowley explained that

the difference between the PACE program and the current hu-

manities program at UNR is in the delivery system of the

courses. PACE is offered during the evening and on weekends

and the students proceed with the course on their schedule.

Student can enroll for up to 12 credits per semester and the

courses are offered in blocks.



In regard to a contractual agreement, President Crowley

stated that if Old College obtained sufficient funds, they

would suggest 2 or 3 faculty to be hired by UNR, retaining

options to not offer a contract if UNR so determines.



18. Report on Cooperative Agreement, Medical School



In 1986 the Board approved a cooperative agreement between

University of Nevada Medical School and the Nevada Division

of Mental Health and Mental Retardation which concerns the

hiring of psychiatrists for the State. Dean Daugherty re-

ported that 3 new faculty have been hired; 2 at the State

Mental Hospital and 1 at Lake's Crossing; and they are re-

cruiting for 2 additional faculty in Las Vegas. Medical

School funds are not used in the hiring of these personnel.

This agreement increases faculty without an expense to the

University, and increases the facilities utilized by the

Medical School. Dean Daugherty stated that this is bene-

ficial to both entities.



Chairman Whitley relinquished the gavel to Vice Chairman Gal-

lagher.



Mrs. Sheerin moved approval of the report on the Cooperative

Agreement between the University of Nevada Medical School

and the Nevada Division of Mental Health and Mental Retarda-

tion. Mr. Eardley seconded. Motion carried.



19. Approved the Sale of Property, UNR



Approved the sale of a 2-acre lot owned by UNR in the Spring

Creek Subdivision in Elko County. The property was donated

by John H. and Carol Douglass in 1979, with the stipulation

that proceeds would benefit the Basque Studies Program.



UNR has received an offer of $2,800, with $850 down and the

balance to be paid in 3 years, including 10% interest. A

sales fee of 5% is to be paid to Lipparelli and Associates

in Elko.



The property has been listed with a number of real estate

brokers in Elko since 1980.



Mrs. Sheerin moved approval to sell a 2-acre lot owned by

UNR in the Spring Creek Subdivision in Elko County. Mr.

Eardley seconded. Motion carried.



20. Approved the Sale of Property, UNLV



Approved acceptance of an offer of $340,000 for 4 lots lo-

cated at the northwest corner of Casino Center Boulevard

and Clark Avenue. The proceeds from the sale will benefit

the College of Business and Economics as outlined by the

donors, Edward J. and Marjorie Barrick and Sam and Mary

Ziegman.



Mrs. Sparks moved approval to sell 4 lots located at the

northwest corner of Casino Center Boulevard and Clark Ave-

nue. Mrs. Kenney seconded. Motion carried.



Mr. Klaich questioned where the proceeds would be designated

and President Maxson stated that they have been earmarked

for the College of Business and Economics accreditation

efforts.



21. Approved Resolution, U. S. Constitution



In celebration of the 200th anniversary of the signing of

the United States Constitution, the Board of Regents will

entertain a resolution. Dr. Don W. Driggs, Chairman and

Professor of Political Science at UNR, reviewed the history

of the Constitution and its meaning to higher education.



Approved the following resolution:



RESOLUTION #87-8



WHEREAS, September 17, 1987 will mark the 200th anniver-

sary of the U. S. Constitution, a document drafted by 55

men for fewer than 4 million people living in 13 states,

which has survived with minimal change to serve us in a

global world; and



WHEREAS, the longevity of the oldest surviving constitu-

tion in the world may be attrbited to its founders' wis-

dom gained by education and experience, to their will-

ingness to compromise, to their vision in writing for

the ages, rather than the hour, and their understanding

of human nature to expand power in one's self-interest

when left unchecked; and,



WHEREAS, to form a more perfect union, these founders

helped create a new nation based upon restraint of power

divided between the people and their government, and

separated in a manner that works only when consensus

has been built among the people; and,



WHEREAS, this uniquely structured separation of powers

allows for improvement and self-correction which has

guaranteed an ultimate system of accountability over

time;



NOW, THEREFORE, BE IT RESOLVED, that we the members of

the University of Nevada System Board of Regents -- a

governing body created by a State constitution of simi-

lar structure to ensure that Nevadans are empowered

through a similar system of checks and balances -- en-

courage all citizens to read the U. S. Constitution

and to join in Nevada's bicentennial celebration.





Mr. Klaich moved approval of the resolution regarding the

U. S. Constitution. Mrs. Gallagher seconded. Motion car-

ried.



22. Presentation of Desert Research Institution Goals



President Taranik presented goals for DRI as contained in

Ref. D, filed with the permanent minutes.



23. Information Only: Report on Prepayment Tuition Savings

Plans



At the request of the Board, a report on prepayment tuition

savings plans was presented by Vice Chancellor Fox. This

concept allows parents to "purchase" higher education at

today's prices for use in the future. Under a typical plan,

parents make a lump-sum payment to guarantee 4 years of

tuition payments when their children are ready for College.

The report is filed in the Regents Office.



At this time, Dr. Fox suggested waiting for an IRS ruling

and for a national program that is under discussion. Mrs.

Sheerin requested that the Chancellor's Office track these

decisions and developments and report back to the Board at

that time.



24. Report on Health Care Facility, CCCC



President Meacham reported that the health care facility un-

der construction on the property located on West Charleston

in Las Vegas has a completion date for April or May, 1988.

There are 80 acres in this particular parcel and it will be

utilized according to the stipulation by the donor of the

gift to use for educational purposes.



Mr. Foley stated that there is a possibility the site may

become a diagnostic clinic to serve hospitals and facilities

in the area.



The Board of Regents convened the meeting at 3:30 P.M. in order

to tour the Department of Speech Pathology/Audiology at the

Medical School and WolfPAC Computer System in the Getchell

Library at UNR.



The meeting reconvened at 8:35 A.M. Friday, September 11, 1987.

All members were present except for Regents Gallagher, Sheerin

and Karamanos.



25. Approved Building Plans, UNS



Approved the final drawings for the System Administration

building. Mrs. Edna Brigham, Assistant to the Chancellor,

and Mr. Ron Mentgen, Architect, Anshen and Allen, made the

presentation.



The building will consist of 14,500 square feet and is lo-

cated on the corner of Evans and Enterprise Avenues. The

completion date is slated for April, 1988. The final costs

will be made available in 3 weeks, but is estimated at

$750,000 - $800,000.



Mr. Klaich moved approval of the System Administration

building plans. Mr. Eardley seconded. Motion carried.



26. New Business



Mr. Eardley requested the agenda for the Regents Workshop

include entrance requirements at the Universities and Com-

munity Colleges, raising standards, mission and goals of

institutions, and Presidential evaluations.



The meeting adjourned at 8:55 A.M.



Mary Lou Moser

Secretary of the Board

09-10-1987