September 17-18, 1981
BOARD OF REGENTS
UNIVERSITY OF NEVADA SYSTEM
September 17, 1981
The Board of Regents met via a telephonic conference call on
the above date to consider a recommendation that the Capital
Improvement Fee be increased by one dollar per credit for all
UNR and UNLV students, effective Fall semester, 1982.
Members present: Mr. Robert A. Cashell, Chairman
(Reno) Ms. Frankie Sue Del Papa
Mrs. Dorothy Gallagher
Members present: Mr. James L. Buchanan, II
(Las Vegas) Mr. John Mc Bride
Mrs. June Whitley
Members present: Mr. John Tom Ross
Members absent: Mrs. Lilly Fong
Mr. Chris Karamanos
Others present: Chancellor Robert Bersi, Reno
President William Berg, Elko
President Joseph Crowley, Reno
President James Eardley, Reno
President Leonard Goodall, Las Vegas
President Clifford Murino, Reno
Vice Chancellor Mark Dawson, Reno
Secretary Bonnie Smotony, Reno
General Counsel Donald Klasic, Reno
Chairman Cashell called the meeting to order at 9:10 A.M. and
asked Vice Chancellor Mark Dawson to explain the problem that
has arisen concerning the bond issue.
Mr. Dawson reported that at the August 28, 1981 meeting, the
Board approved a bond sale in the amount of $2 million for the
UNLV Hotel and Business Administration building at an interest
rate of 14.8% to the Bank of America. After analyzing the inter-
est rate and the funds that are available, it was determined that
the University does not meet all of the earnings tests that are
required on this bond issue and therefore cannot satisfy the debt
service in the year 1997 with existing revenues. Vice Chancel-
lor Dawson further stressed the emergency nature of approving a
$1 per credit increase in the Capital Improvement Fee by stating
the bonds must be delivered to the Bank of America by October 1,
1981, or the buyer will no longer be obligated for this purchase.
He stated that in his opinion there were only two alternatives,
one of which is to increase the Capital Improvement Fee by $1 and
the other to eliminate $2 million from the Hotel and Business
Administration Building Project. He stated that he did not be-
lieve the second alternative to be a viable one.
All of the Regents, individually, expressed their dislike and
regret in having to impose such an increase. However, they also
indicated that they believed it to be the only possible solution
to the problem.
Dirk Ravenholt, UNLV Student Body President, stated that it was
his understanding that the funds raised in one year would be ade-
quate to satisfy the bond issue and requested that the $1 in-
crease, if necessary, be implemented for only the 1982-83 school
Mr. Henry Chanin agreed that this was true and that the Board
could reconsider and reduce the CIF after June 30, 1982.
Doc Bodensteiner, ASUN President, stated that the ASUN Senate had
endorsed a recommendation and had directed him to make the fol-
lowing statement to the Board.
ASUN PRESIDENT ADDRESSES THE BOARD OF REGENTS
September 17, 1981
Once again, those who can least afford to bear a greater
financial burden are faced with the possibility of having to
dig deeper to bail out the System to the tune of $200,000
per year. The Board will be making an ill-timed and unpre-
cedented mistake by moving ahead with approval of another
fee increase without any real opportunity for a well formu-
lated opposition. It seems that at any time increased rev-
enues are required anywhere within the System, it is most
convenient to slap the burden on the students. After ab-
sorbing a 25% increase this year, we are vehemently op-
posed to any type of increase under any circumstances next
We are simply saying, find the money elsewhere. The stu-
dents of UNR are responsible and have already done more
than our share.
Further increase of student revenue will just give the
Legislature another reason to cut State funding in 1983.
If you want to go ahead with construction of the Las Vegas
building, then find some other source to supplement the
bonding fund; if the Board doesn't know of any source at
the present time, then table this matter until an equitable,
rational, well thought-out decision can be reached. We are
aware of the problem that you are facing in regard to high
interest rates, but your problems are not unique. When
students are faced with financial emergencies, they have to
work out their own budget and survive. They have no one to
impose levies or assessments upon.
At a time when students have already faced increased fees,
increased tuition, increased housing and food costs, in-
creased book prices, increased parking costs, and decreased
financial aid we are being asked for more. The well is
drying up. We believe that it is incumbent upon you to
provide proper financial planning for us, and my question
from the students is, why have you not done so, and who is
In response to a statement by Regent Ross that UNR students are
being asked to help finance a building at the UNLV Campus, Mr.
Dawson indicated that no actual UNR funds will be expended, only
used for cross pledging.
Mrs. Gallagher pointed out that it was the University of Nevada
System having the problem and that it was the duty of the Board
to remember that both Campuses are a part of that System. Mr.
Cashell agreed, stating that this situation could be likened to
UNR co-signing a note for UNLV.
Mr. Ross asked if any thought had been given to the UNR Church
of Fine Arts building and was assured by President Crowley that
this project is under consideration.
Ms. Del Papa moved approval of the recommended $1 per credit in-
crease in the Capital Improvement Fee with the stipulation it be
reviewed after June 30, 1982. Motion seconded by Mr. Mc Bride.
In response to a question from Mrs. Whitley, Mr. Chanin explained
the reason that this problem has arisen. Mr. Chanin stated that
a distinction should be made between things that are happening on
paper and things that are really happening. The problem arises
from the fact that the 1979 bond contract set up three tests on
paper that needed to be met. These tests were designed as a part
of a series of things included in the contract to enhance the
security of the bonds and make them more attractive to investors.
He added that a combination of factors, including the state of
the bond market and the level of interest rates, have created
this situation on paper. He further stated that no one could
have anticipated such circumstances and that this was not a case
of mismanagement or neglect on the part of anyone concerned.
Chancellor Bersi further clarified the situation by explaining
that this was a circumstance created by factors in the economy
and by timing factors over which the Board of Regents had abso-
lutely no control. This was an example of a responsible body
being compelled to act in the face of a problem with a major
building under construction on one of its Campuses. He further
agreed that there was a possibility that the fee could be return-
ed and guaranteed that his Office and the Board would be watchful
Motion passed without dissent by roll call vote.
Meeting adjourned at 9:33 A.M.
Bonnie M. Smotony
Secretary of the Board