10/24/1980

UCCSN Board of Regents' Meeting Minutes
October 24-25, 1980








10-24-1980

Pages 51-61

BOARD OF REGENTS

UNIVERSITY OF NEVADA SYSTEM

October 24, 1980



The Board of Regents met in special session on the above date in

the William Carlson Education building, University of Nevada, Las

Vegas.



Members present: Mr. Robert A. Cashell, Chairman

Mr. James L. Buchanan, II

Mrs. Lilly Fong

Mr. Chris Karamanos

Mrs. Molly Knudtsen

Dr. Louis E. Lombardi

Mr. John R. Mc Bride

Mrs. June F. Whitley



Members absent: Mr. John Tom Ross



Others present: Chancellor Donald H. Baepler

President Joseph N. Crowley, UNR

President Judith Eaton, CCCC

President Leonard Goodall, UNLV

Vice Chancellor Larry Lessly

Secretary Bonnie M. Smotony



The meeting was called to order by Chairman Cashell at 10:05 A.M.



Chairman Cashell requested consideration of the following

emergency item.



1. Investment Recommendation from Valley Bank



Mr. Monte Miller reported that the University holds 2400

shares of Boeing stock. He recommended this stock be sold,

noting that it is presently selling at 34-3/4, adding that

this will result in a loss of approximately $4,700, but the

stock is weak and is expected to continue to go down.



Dr. Lombardi moved approval. Motion seconded by Mrs. Fong,

carried without dissent.



2. Intercollegiate Athletics



Mr. Cashell stated that the purpose of the meeting was to

discuss Intercollegiate Athletics at the two Universities,

specifically the area of institutional control of these

programs.



Mr. Mc Bride stated that he wished to read a prepared state-

ment which would include a motion.



Mr. Buchanan objected, suggesting that such a statement

might go into other items not on the agenda and thereby lead

to a violation of the Open Meeting Law, and possible lead

into a personnel session as to the professional competence

of an individual. He requested that the statement be sub-

mitted to the Chair for review before its introduction.



At the request of Chairman Cashell, the statement was re-

viewed by Counsel. Upon Counsel's assurance that the state-

ment would not violate the Open Meeting Law and did not con-

tain any reference that would more appropriately be handled

in a personnel session, Mr. Mc Bride read the following

statement:



Approximately one year ago, I was one of two Regents

interviewed by several WAC Presidents and the previous

WAC Commissioner, Stan Bates, regarding the UNLV appli-

cation for admission to that conference. One of the

questions asked of me was: Did UNLV and the Regents

have institutional control over Intercollegiate

Athletics? In response to that question, I indicated

that since I had been in office for less than a year, I

could not speak for the past. I did, however, state

that in my judgment, with the recent appointments of Dr.

Goodall as President, and Dr. Negratti as Athletic

Director, we would have institutional control. I fur-

ther stated that as a Regent, I would have it no other

way, and if I believed that not to be the case, I would

so advise the WAC and NCAA. Individual Boosters or a

Booster organization cannot be allowed to run, directly

or indirectly, the Athletic Program of any honorable in-

stitution. Lest anyone take comments out of context,

let me make it clear that Boosters are not only welcome

to support our Athletic Programs but are absolutely nec-

essary for appropriate financial support, particularly

in view of the pressures faced due to inflation, lack of

adequate State support, and Federal Title IX require-

ments. They cannot, however, be allowed to "run the

Department".



I am concerned and distressed that it was necessary for

this Board to meet in special session today to discuss

this subject, but in my judgment, it is absolutely es-

sential that this subject be aired publicly by this

Board. As I see it, the issue is not the resignation of

Negratti, but the far more serious question of institu-

tional control over Intercollegiate Athletics. I am

also convinced that this session would not have been

necessary if a couple of Regents had not brought up the

question of reporting relationships of the UNLV Athletic

Fund Raising Office at the end of the August 29th Board

meeting. I had to leave the meeting early that day (but

not until after the last action item on the agenda), so

I was not aware of the discussion until I received my

copy of the minutes. I subsequently asked for a tran-

script of that discussion, which I have with me. It is

obvious to me from reading that transcript that Dr.

Goodall was misled into believing that the Associate

Director of Athletics reported directly to the UNLV

President and that, furthermore, this was Board policy.

An investigation shows nothing further from the truth.

I challenge any Board member to find such a policy in

any Board meeting minutes or the Board's policy manual.

No single Regent or group of Regents can set Board pol-

icy; a majority of the Board must do that. Furthermore,

the Fund Raiser for Athletics carried the title of

Associate Athletic Director, not Associate UNLV Presi-

dent; his performance ratings were given by Bill Ireland

during the administrations of Baepler and Dixon and by

Negratti since Dr. Goodall's appointment. In addition,

all of his leave and travel requests are approved by the

Athletic Director.



The argument that Athletic Fund Raising activities im-

pinges on other donors and therefore it is a function of

the President's Office is facetious to say the least.

What about the donors for the Concert Series or the

Theatre Series? These activities are not run by the

President's Office, and yet you will find many of the

same donors in all three functions.



By misleading Dr. Goodall, this Board will have to take

the responsibility for the flap over Dr. Negratti's

resignation. Furthermore, certain irresponsible com-

ments made to the Press implied that the Board was un-

happy with Dr. Negratti, which is a total falsehood. I

know for a fact that a majority of this Board supported

and still supports Dr. Negratti and believes he has done

an excellent job in a difficult situation. However,

there still remains in the Athletic Department a very

small group who like to "free-wheel" it -- this still

disturbs me. However, I want to make it clear that I

have the highest regard and admiration for the many out-

standing men and women in that Department and hope that

some day they will prevail.



Before closing my remarks, I would like to recall some

of the events of the last week for the information of

the Regents. Late Thursday afternoon, a week ago, Dr.

Goodall called me and asked if I could meet with him and

Dr. Negratti at breakfast the next day (Friday). He in-

dicated that Dr. Negratti wanted to submit his resigna-

tion, and knowing that I was a friend of Al's, asked if

I would join him in "talking Al out of it". We met for

more than two hours Friday morning and, as you know, we

were unsuccessful. I felt then, and feel now, that the

impasse resulted from a communications problem or mis-

understanding and not a lack of institutional control.

Both Dr. Goodall and I tried to convey the fact that the

Fund Raising issue would be resolved to his satisfaction

at the next Board meeting. Dr. Goodall has already di-

rected the Fund Raising Office to supply all of the re-

quested information, and I am sure the Board will en-

dorse the two Presidents' actions on reporting lines of

the Athletic Fund Raisers today. I wish Friday the 17th

had not happened, for I still believe Dr. Negratti has

been a breath of fresh air to our University System. He

has done a tremendous job in a short period of time.



I am not going to try to talk Al into withdrawing his

resignation, for I have tried that and I respect his

decision. At the end of our discussion period, I intend

to submit a motion to the Board as an action item.

This motion will propose that the Board:



(1) Totally subscribe to the principle of institutional

control over Intercollegiate Athletics, and that

the Presidents of UNLV and UNR see that such a

mandate is carried out.



(2) Reaffirm its total support of both Dr. Goodall and

Dr. Negratti in their actions to restore confidence

and integrity and credibility to the Athletic

Department.



(3) Concur in the recommendations of Presidents Crowley

and Goodall in their organizational assignment of

Athletic Fund Raising responsibilities within their

institutions.



(4) Authorize and direct Kafoury, Armstrong and Company

to conduct an audit of Athletic Fund Raising activ-

ities on both Campuses with particular emphasis on

ticket and cash equivalence accountability.



I would now like to ask the Chairman if he would recog-

nize Dr. Goodall for comment and his recommendation

regarding Athletic Fund Raising activities.



Thank you, Mr. Chairman.



Following his statement, Mr. Mc Bride noted that a recom-

mendation had also been placed before the Regents in which

the UNLV Alumni Association had asked for an audit such

as he was recommending (filed with permanent minutes).



President Goodall stated that before he made a recommenda-

tion on the matter under discussion, he wished to comment on

Mr. Mc Bride's statement concerning their meeting with Dr.

Negratti and their unsuccessful effort to persuade him to

reconsider his decision to resign. President Goodall agreed

that it would not be productive to pursue that with Dr.

Negratti, stating that he respected his decision, and ac-

cepted his decision to resign. He expressed appreciation to

Dr. Negratti for his willingness to continue during the

transition period required for recruiting a new Director,

and added the following statement for the record:



That search (for a new Director) will begin very quick-

ly. Concerning the transition, let me say just a word

to those of you who may fear, or even those who may

hope, that UNLV is going to have a renegade Athletics

Program, or that UNLV is going to give up the progress

of the past year, or that UNLV is going to allow this

program to be influence or overrun by outside forces.

If you have those thoughts, then may you hear this loud

and clear. UNLV is going to have an Athletics Program

that this University and this community will be proud

of. We are going to have institutional control of

Athletics. We are going to use that institution con-

trol to have a program, which I have said many times

in the past, will be: (1) consistent with the aca-

demic goals of this University; (2) consistent with

the budget limitations we place upon it; and (3) con-

sistent with the rules and policies of the NCAA, the

conference and of this University. Those are my

personal commitments, and I can assure you those are

commitments that are shared by the Faculty Senate,

through the expression of the Executive Committee,

by the Intercollegiate Athletics Council, and I am

confident by every member of this Board of Regents.

That is where we are, that's the base upon which we are

going to build, and that is the point upon which we are

going to go forward, under Dr. Negratti's leadership

through the transition, and under his successor.



President Goodall then read the following statement and

recommendation for the record:



From the time I arrived in July, 1979 until the time of

the August, 1980 Regents meeting, the Athletics Fund

Raising Office was a part of the Athletic Department and

reported to the Athletic Director. This was true under

Dr. Ireland and then under Dr. Negratti. During the

past months, Dr. Negratti performed all the normal su-

pervisory duties for that Office, and even changed Dr.

Pearson's title, making him Associate Director rather

than Assistant Director. I was unaware of there being

any problem on this subject until the time of the August

meeting.



At the August meeting I was asked whether the Athletics

Fund Raising Office reported to me and I said it did

not; rather, it reported to the Athletic Director, as

the title implied. The Regents asked me to review this

subject and bring back a recommendation. They also

asked that the Office report to me in the interim, based

on what was said to be past Regents policy.



Some have thought I could have settled the whole matter

with a simple phone call or memorandum. In fact, I

could not; once the Regents asked that I return with a

recommendation, I assumed I could not take further

definitive action until the matter had come back for

the Board's review of my recommendation.



As you are aware, I was in the midst of a Campus-wide

administrative study at that time. The Board had fund-

ed similar studies at UNR and UNLV and ours was proceed-

ing. I told my staff members, including Dr. Negratti,

that I intended first to provide the Board with a copy

of the study for information, and then, after you had

time to read it and comment, I would return with spe-

cific recommendations. The report was in your October

agenda for your information. Because of the short time

between the October and November meetings, it was my

intention to return with specific recommendations at

the time of the December meeting rather than the Novem-

ber meeting.



It has been suggested that I may have wanted to delay

this decision so that it could be made after the WAC

matter was resolved. That does not make sense because

the December Regents meeting is early in the month, but

the WAC meeting is not until the Friday before Christ-

mas.



I still believe it would be most appropriate to address

the entire subject of administrative structure as a

whole, but because of the recent attention given to this

matter, I am prepared to make a recommendation now.



I recommend that the Athletics Fund Raising Office be

located where I had placed it prior to the August Re-

gents meeting, in the Athletic Department. The Head

of that Office should report to the Athletic Director.

This is the administrative organization found on most

Campuses with which I am familiar. This recommendation

has the unanimous support of the Intercollegiate Ath-

letics Council. I recommend approval.



In the discussion following, Dr. Wayne Pearson commented on

the history of the Athletic Fund Raising efforts at UNLV,

noting that the function was initiated in 1970, and he join-

ed the staff in 1971. Currently, there are three people

working in the Office -- himself, Mr. Dave Pearl and a sec-

retary. Dr. Pearson stated that his salary and that of the

secretary are paid from University funds; that Mr. Pearl's

salary is provided partly from the University and partly

from the Rebels Club for his service as Executive Director

of that organization. He also pointed out that all solici-

tations for the Athletic Program are made by himself and his

staff, and all checks for scholarships are made payable to

the Board of Regents and deposited to University accounts.

Dr. Pearson reported that this year's pledges to date amount

to $1,253,800, of that total, $1,026,168 has been collected.



Mrs. Fong asked about the funds collected by the Rebels Club

for events such as the Frank Sinatra Concert, noting that

solicitation letters request that such checks be made pay-

able to the Rebels Club. Dr. Pearson explained that the

stationery and postage costs for such solicitations are

borne by the Rebels Club, and although his office is doing

the work for this affair, just as it does for several

such Rebels Club sponsored affairs each year, funds are

collected by the Club.



In response to a question from Mrs. Fong as to the percent-

age of Mr. Pearl's salary paid by the University compared

with that paid by the Rebels Club, Dr. Pearson estimated

that the University pays about 2/3 of his salary. In re-

sponse to a subsequent question from Mrs. Fong concerning

the availability of a financial statement for the Rebels

Club, Dr. Pearson stated that any donor to the Rebels Club

could see the financial statement by visiting the office of

George Fox. Mrs. Fong suggested that such records should be

more readily accessible, adding that if Mr. Pearl receives

the greater portion of his salary from the University, the

books should be available for Regents who wish to examine

them.



Dr. Pearson pointed out that the Rebels Club is not an

official arm of the University and cannot be, under NCAA

rules, explaining that in order to be an official arm of

the University, a Boosters Club must be a bonafide alumni

organization, whereas the Rebels Club has only about five

percent of its total members who are alumni of UNLV.



Mr. Buchanan suggested that since, as Dr. Pearson points

out, the Rebels Club is a separate organization, the Board

of Regents does not have any authority to request access to

the Club's records. He pointed out that money which is con-

tributed for scholarships comes to the University and is

accounted for, thereby providing the necessary institutional

control. He objected to the criticism of the Athletic Fund

Raising operation, suggesting that Dr. Pearson and Mr. Pearl

and the Boosters ought to be congratulated on building that

function into such a successful operation.



Mrs. Fong stated that her remarks were not intended as crit-

icism; rather she believed that as publicly elected Offi-

cials, the Board of Regents should be accountable to the

taxpayers for the way in which the institution is run. Mr.

Buchanan agreed, and suggested that is indeed the case.

However, he pointed out that the Rebels Club works for the

benefit of the University and has never interfered with the

internal affairs of the University, and what they do with

the money they raise or how they get it is their concern.

The only appropriate control the Regents should exercise is

over the money that comes to the institution for scholar-

ships.



Mr. Mc Bride commented that he did not regard the discussion

as criticism of the Fund Raising operation or of the Rebels

Club, pointing out that the concern stems from the inability

of the University to demonstrate that it is fully in control

of the Athletic Program.



Mr. Buchanan objected to UNLV being "put on the block",

suggesting that if the Board wished to talk about control,

then perhaps it ought to look at UNR, pointing out that all

of the money collected for scholarships for UNR is collected

by the Boosters and the University therefore has no institu-

tional control at that institution.



President Crowley pointed out that this procedure is being

changed to require that scholarship contributions for Ath-

letics are made payable to the Board of Regents, in the

same manner as that described for UNLV.



Mr. Cashell stated that it was not intended to focus nega-

tive attention on UNLV, rather to provide an opportunity for

a full airing of the concerns. He agreed that the Rebels

Club, Dr. Pearson and Mr. Pearl worked very hard and suc-

cessfully for the UNLV Athletic Program, as do their coun-

terparts at UNR, and their efforts are greatly appreciated

by the two institutions and by the Board. He added that he

also personally appreciated very much the fact that neither

of the two Boosters organizations had called him to request

the special meeting be cancelled, although he had received

calls from several individuals who had objected to the

meeting.



Mr. Mc Bride requested that his motion stated earlier also

include the recommendation from the Joint Intercollegiate

Athletics Committee that all scholarship sales be handled

through the two Universities with all checks made payable to

the Board of Regents. He noted that this procedure is now

followed by UNLV, and as noted by President Crowley, is be-

ing put into effect for UNR beginning in January, 1981. Mr.

Mc Bride also noted that his motion included concurrence

with the recommendations of Presidents Crowley and Goodall

in their organizational assignments of the Athletic Fund

Raising responsibilities, and that would accommodate Presi-

dent Goodall's recommendation presented earlier.



Motion seconded by Mrs. Fong.



Mr. Buchanan commented on Mr. Mc Bride's motion, objecting

to the suggestion for commendation of Dr. Goodall and Dr.

Negratti, stating that he did not believe this was in order

since Dr. Goodall and Dr. Negratti were merely doing the job

they are employed to do. He also objected to the proposed

audit, pointing out that Kafoury, Armstrong and Company had

just completed an audit of ticket and cash handling. Mr.

Buchanan further objected to the recommendation by President

Goodall concerning the administrative structure, suggesting

that it was inappropriate to change the policy concerning

reporting lines at this point.



Mr. Cashell pointed out that there has never been a Board

policy placing the Athletic Fund Raisers in a direct report-

ing line to the President. Mr. Buchanan disagreed, recall-

ing that this was discussed by the Board in August at which

time it was reaffirmed that the Fund Raising function did

indeed report to the President, that it had reported to Dr.

Baepler when he was President, and to the President previous

to him. Mr. Buchanan stated that as far as he was concerned

that policy had not been changed.



Dr. Baepler recalled that when he was President of UNLV,

Fund Raising was totally coordinated through the President's

Office; however, he agreed that it was not a Regents policy.



Mr. Buchanan moved to amend the motion before the Board to

require that until such time as a new Athletic Director is

appointed and assumes his duties, the President's Office

shall be responsible for all Fund Raising activities at

UNLV. Motion was not seconded.



At Mr. Buchanan's request, the motion was restated for clar-

ification, as follows:



That the Board:



(1) totally subscribe to the principle of institutional

control of Intercollegiate Athletics and that the

Presidents of UNLV and UNR see that such a mandate

is carried out;



(2) reaffirm its total support of both Dr. Goodall and

Dr. Negratti and their actions to restore confi-

dence, integrity and credibility to the Athletic

Department;



(3) concur in the recommendations of Presidents Crowley

and Goodall in their organizational assignment of

Athletic Fund Raising responsibilities within their

institutions;



(4) authorize and direct Kafoury, Armstrong to conduct

an audit of Athletic Fund Raising activities on

both Campuses with particular emphasis on ticket

and cash equivalency accountability;



(5) concur in President Goodall's recommendation that

the Athletic Fund Raising Office be located where

he had placed it prior to the August meeting -- in

the UNLV Athletic Department; and



(6) direct that all scholarships sales be handled

through the two Universities with all checks made

payable to the Board of Regents, with this to

become effective at UNR in January, 1981.



Mr. Buchanan requested that each of the points in the motion

be voted on separately. Mr. Mc Bride declined to amend his

motion, requesting that it be voted on as a single motion.



Motion then carried unanimously by roll call vote.



Mrs. Fong reported that she had a received a letter from

Harry and Peggy Polk, in support of Dr. Negratti, and asked

that the letter be noted in the minutes.



Mr. William Morris, Secretary/Treasurer of the University

Rebels Club, commented on the relationship of the Club to

the University, referring briefly to Mrs. Fong's comments

about the Club's financial statement. He pointed out that

mailing copies of the financial statement to all 1700 mem-

bers of the Club would be very costly. He noted that, as an

alternative, the Club makes financial reports at its meet-

ings for the information of the members.



Mr. Morris also commented on the efforts of the Rebels Club

to provide money for the University's Athletic Department,

in addition to the scholarships for Athletics, whenever pos-

sible and wherever there is insufficient money available

from other sources, citing as an example $150,000 which the

Club borrowed to provide funds for the Marching Band, and

$15,000 that was given to the Department to buy sports a-

wards for the past two years. Mr. Morris noted that these

funds are raised through the various activities sponsored

by the Rebels Club, such as the Frank Sinatra Concert, the

Jogathon, and exhibition games. Mr. Morris also suggested

that when the Intercollegiate Athletics Program is funded

sufficiently, there may be no need for such an active

Boosters organization.



In commenting further, Mr. Morris recalled that in a recent

investigation by the NCAA, the Rebels Club had provided

photostats of all checks for the past five years, with

explanations as to what each one was for, and as a result

the NCAA had commended the Rebels Club for the way in which

their records were kept. Insofar as an audit of the Club's

records are concerned, Mr. Morris estimated that it would

cost $40,000 to go back over the past 13 years to bring an

audit forward.



President Goodall expressed appreciation to the Rebels Club,

for the kind of support it is giving to the UNLV Athletic

Program, suggesting that he did not believe any quality

program could remain strong without such support and added

that he looked forward to its continuance.



Dr. Negratti reaffirmed the statement by Mr. Morris that the

Rebels Club, and Mr. Morris in particular, have always been

available for help when asked, but have never pressured the

University or the Athletic Department in any way.



The meeting adjourned at 11:35 A.M.



Bonnie M. Smotony

Secretary of the Board

10-24-1980