11/02/1979

UCCSN Board of Regents' Meeting Minutes
November 2-3, 1979








11-02-1979

Pages 23-46

BOARD OF REGENTS

UNIVERSITY OF NEVADA SYSTEM

November 2, 1979



The Board of Regents met on the above date in the Pine Audito-

rium, Travis Student Union, University of Nevada, Reno.



Members present: Mr. Robert A. Cashell, Chairman

Mr. James L. Buchanan, II

Mrs. Lilly Fong

Mr. Chris Karamanos

Mrs. Molly F. Knudtsen

Louis E. Lombardi, M. D.

Mr. John R. Mc Bride

Mr. John Tom Ross

Mrs. June F. Whitley



Others present: Chancellor Donald H. Baepler

President William Berg, NNCC

President Joseph Crowley, UNR

President Jack Davis, WNCC

President Judith Eaton, CCCC

President Leonard Goodall, UNLV

President Lloyd Smith, DRI

Mrs. Bonnie M. Smotony, Secretary

Mr. Larry Lessly, General Counsel and Vice

Chancellor for Legal Affairs



Also present were: Faculty Senate representatives Christopher

(CCCC), Elliott (WNCC/N), Jacobson (DRI), Marschall (UNR),

Melrose (NNCC), Pugsley (WNCC/S) and Van Vactor (UNLV); Student

Association representatives Bennett (NNCC), Campbell (UNLV),

Koepf (USUNS), and Ritch (UNR).



The meeting was called to order by Chairman Cashell at 10:15 A.M.



Chairman Cashell announced that prior to consideration of the

agenda, he wished to comment on the recent grant of $2 million

from the Fleischmann Foundation to the School of Medical Sciences

and to take particular note of the efforts of Dr. Fred Anderson

in securing this grant. He also reported receipt of a check for

$400,000 from the Mary Etta Sugden estate to UNR, noting that a

total of $700,000 had been secured from Mrs. Sugden and from her

estate through the efforts of Robert Laxalt. Chairman Cashell

expressed the appreciation of the Board of Regents to both Dr.

Anderson and Mr. Laxalt for their efforts in securing these

substantial gifts for the University.



1. Approval of Consent Agenda



The Consent Agenda containing the following items, was sub-

mitted for approval (identified as Ref. A and filed with

permanent minutes):



(1) Approval of minutes of regular meeting of September 21,

1979.

(2) Report of Gifts and Grants.

(3) Proposed amendment to long-term disability income

protection plan to extend coverage to employees of the

National Judicial College and the National Council of

Juvenile and Family Court Judges.

(4) Reports from UNLV and CCCC of uncollectible Student

Loans.

(5) Approval of Estimative Budget for London Theater

Experience, offered by UNR's Extended Programs and

Continuing Education.

(6) Approval of a change in signature authority for DRI

revolving petty cash account.

(7) Approval of changes in drainage easements at UNLV.

(8) Approval of modifications of EPA/UNLV lease.

(9) Approval of observation well at CCCC.



Dr. Lombardi moved approval of the Consent Agenda as sub-

mitted. Motion seconded by Mr. Mc Bride, carried without

dissent.



2. Resolution of Appreciation



The following resolution was submitted for adoption:



RESOLUTION #79-10



WHEREAS, Brenda D. Mason has served as a Regent of the

University of Nevada continuously from January, 1975,

until her resignation on September 6, 1979; and



WHEREAS, during this time she has freely devoted time

and attention to this public office; and



WHEREAS, Miss Mason has consistently encouraged and fostered

increasing interest by all units of the University in the

development and maintenance of effective affirmative action

programs; and



WHEREAS, Miss Mason has now resigned to pursue a degree in

law;



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

expresses to Brenda D. Mason its sincere appreciation for

the professional and effective manner in which she had dis-

charged her responsibilities as a Regent of the University

of Nevada; and



BE IT FURTHER RESOLVED that the Regents, individually and

collectively, extend to her their best wishes for success

in law school and in her future professional activities.



Dr. Lombardi moved approval of the resolution as submitted.

Motion seconded by Mr. Buchanan, carried without dissent.



3. Security Disclaimer



Chancellor Baepler recalled that in 1977, in response to a

request from the U. S. Energy and Research Development

Administration, a Managerial Group for the University of

Nevada System was established to negotiate, execute and

administer contracts involving classified information.

That Managerial Group consists of the Chancellor and the

Presidents of UNR, UNLV and DRI.



Dr. Baepler commented that the establishment of this

Managerial Group has made it possible not to require each

Regent to apply for and go through the procedure of an

extensive security clearance. He also recalled that reso-

lutions have previously been adopted to exclude Regents

from access to classified information and submitted the

following resolution to exclude Regent Whitley:



RESOLUTION #79-11



BE IT RESOLVED that June F. Whitley, Regent of the Univer-

sity of Nevada, shall not require, shall not have, and can

be effectively excluded from access to all classified infor-

mation in the possession of the University of Nevada System,

and does not occupy a position that would enable her to af-

fect adversely the policies and practices of the University

of Nevada System in the performance of classified contracts

for the Department of Defense or User Agencies of its

Industrial Security Program awarded to the University of

Nevada System, and need not be processed for a personnel

clearance.



Mr. Buchanan moved approval of the resolution as submitted.

Motion seconded by Mrs. Fong, carried without dissent.



4. Report of 1979 AGB National Trustee Workshop



Chairman Cashell reported that he and Regents Whitley, Mc

Bride and Lombardi had attended the 1979 National Trustee

Workshop in Dallas, sponsored by the Association of Govern-

ing Boards. He noted that each of them had attended dif-

ferent sessions in order to maximize the benefits of their

attendance and he believed that they had all found the work-

shop worthwhile. Dr. Lombardi and Mr. Mc Bride agreed.

Mrs. Whitley commented that, as a new Regent, she had found

the sessions particularly helpful.



Mr. Cashell also reported that he and Regents Mc Bride and

Lombardi had met with the two individuals who will serve as

the Board Mentors for the workshop which AGB is sponsoring

for the University of Nevada Regents and Officers in January

in San Diego, and had agreed upon some of the procedures to

be followed.



Mrs. Fong questioned the location which had been selected

for the workshop, stating that she was opposed to spending

Regent's money for what she considered an extravagant trip

when the workshop could be done closer to home.



Mr. Cashell explained that one of the strongest reasons for

holding the workshop in San Diego was in response to ad-

vice from AGB that every effort be made to remove the par-

ticipants from their normal environment in order to ensure

maximum participation and productivity for the time spent.

He also noted that the proposed agenda for the workshop

provides little time for anything more than work, and urged

the Regents to give this workshop top priority in their

planning.



5. Association of Governing Boards of Universities and Colleges



Chancellor Baepler noted that the University of Nevada Board

of Regents has been a member of the Association of Governing

Boards of Universities and Colleges for approximately twenty

years. He explained that the Association is a non-profit

educational organization of governing, coordinating and ad-

visory boards of postsecondary education, and serves some

19,000 Trustees, Regents and Chief Executives representing

nearly 1,300 Colleges and Universities -- private, public,

two-year, four-year, general and specialized.



Chancellor Baepler recommended the Board continue its mem-

bership in AGB and that the annual dues for 1980 of $1,250

be provided by allocation from the Board of Regents Special

Projects Account.



Mr. Ross moved approval. Motion seconded by Mr. Mc Bride,

carried without dissent.



6. Association of Community College Trustees



Chancellor Baepler recalled that in 1978 an invitation was

forwarded to the University of Nevada for membership in the

Association of Community College Trustees. He noted that

this organization is comprised of Governing Boards of Com-

munity Colleges and Technical Institutes, and its major

objectives are to unify Governing Boards, to give direction

to the Community College movement, to provide accountability

and public understanding of the role of the Community Col-

leges, to encourage equitable and adequate support of two-

year postsecondary education, to function as a clearing

house for collection and dissemination of information and

to provide liaison with other national organizations con-

cerned with the Community College movement.



President Eaton reported that she had attended the annual

convention of ACCT in Detroit, Michigan, in October, and

encouraged the Board to accept the invitation to affiliate

with ACCT.



Chancellor Baepler recommended that the Board seek member-

ship in ACCT, and that the annual affiliation fee of $825,

based on total head-count enrollment for the most recent

Fall term registration for the Community Colleges in Nevada,

be provided by allocation from the Board of Regents Special

Projects Account.



Mrs. Fong moved approval. Motion seconded by Mrs. Whitley,

carried without dissent.



7. Proposed 1980 Meeting Calendar



Chancellor Baepler proposed the following calendar of Board

meetings for 1980 be adopted:



February 1, 1980 Reno

March 7 Las Vegas

April 4 Reno

May 9 Las Vegas

June 20 Reno

July 25 Las Vegas

August 29 Reno

October 3 Las Vegas

November 7 Reno

December 12 Las Vegas

January 23, 1981 Reno



Dr. Baepler noted that a regular meeting was not proposed

for Elko this year; however, he suggested that once each

year a meeting of the Regents and the Northern Nevada

Community College Advisory Board be held in Elko. This

procedure would provide the opportunity for exchange of

information between the two Boards without the expense in-

volved in holding a full Board meeting with Officers, fac-

ulty and student representatives and staff.



Mr. Mc Bride moved approval. Motion seconded by Dr.

Lombardi, carried without dissent.



8. Proposed Amendment to Board of Regents Bylaws



Chancellor Baepler recalled that at the September meeting,

the Board approved a proposal to change the Audit Committee

to a Finance Committee, with expanded responsibilities, with

such action to be treated as a "first reading" of the neces-

sary amendment to the Bylaws.



An amended version of the Bylaws, reflecting the expanded

responsibilities of the Finance Committee (Article IV,

Section 4), and including a number of minor editorial

changes, was included with the agenda (identified as Ref.

B and filed with permanent minutes).



Chancellor Baepler requested approval of the proposed

amendment.



Mr. Mc Bride moved approval. Motion seconded by Dr.

Lombardi, carried without dissent.



Mrs. Fong noted the provision in the Bylaws that "Robert's

Rules of Order shall govern the course of all business and

debate so far as it may be applicable to the procedure of

the Board of Regents" and suggested this provision be fol-

lowed. She also commented that she would like to see a

registered parliamentarian attend a Board meeting as an

observer to judge whether the Board follows the rules of

parliamentary procedure.



9. Proposed Criteria for Postretirement Appointments



Chancellor Baepler recalled that at the June, 1979 meeting,

the Board abolished the practice of granting postretirement

appointments, with the understanding that at such time as

acceptable criteria could be developed, the Board would be

requested to reinstate such postretirement appointments.



Dr. Baepler presented the following proposed criteria, as

developed by Vice Chancellor Lessly, and recommended its

adoption to replace Section 3 of Chapter 4, Title 4 of the

Board of Regents Handbook:



Section 3. Postretirement Appointments



1. A nonrenewable postretirement appointment of a profes-

sional employee may be granted by the Board of Regents

for a period not to exceed one year under the following

conditions:



(a) The position to which the postretirement appoint-

ment is made must have been advertised in accord-

ance with required affirmative action search

guidelines.



(b) The search must have resulted in lack of any

applicant who meets the minimal qualifications

for the position to which the postretirement

appointment is made.



(c) The search for a minimally qualified candidate

shall be continued even though a postretirement

appointment is made to fill the position.



(d) The postretirement contract shall be a nontenured

contract.



(e) The contract tendered the appointee shall contain

appropriate provisions set forth in this section.



Mrs. Knudtsen expressed concern that the criteria was so

stringent and asked if some revision to the wording was

possible to make the policy more flexible.



Mr. Lessly stated that the proposed criteria was in conform-

ance with Federal and State law, and with the provisions

adopted earlier concerning mandatory retirement, and advised

against going beyond the criteria proposed above. He sug-

gested that there would be a substantial chance of losing

any litigation filed under these provisions if the criteria

were relaxed.



In response to a question concerning letters of appointment,

Mr. Lessly stated that a letter of appointment does not

create an employer-employee relationship with the University

and the provisions for postretirement appointments would in

no way affect employees on a letter of appointment.



Mrs. Fong moved approval. Motion seconded by Mrs. Whitley,

carried without dissent.



10. Policy Decision Concerning Establishment of Foundations



Chancellor Baepler recalled that there have been a number

of proposals for establishment of foundations for purposes

related to various University programs. He reported that

at his request, Messrs. Lessly, Partridge and Rivera had

researched the legal and tax aspects of such foundations

and noted that Vice Chancellor Lessly had sent a letter to

the Board outlining certain options which he was prepared

to discuss.



Vice Chancellor Lessly stated that, in his opinion, one of

the major concerns throughout the University System with

respect to fund raising activities was for the creation of

a fund identifiable with a particular institution or entity.

He suggested the following four options:



(1) Creation of a private foundation, outside of the

administrative framework of the University.



Mr. Lessly stated that there were a number of problems

with this approach. First, he said, University employ-

ees cannot be used to do administrative work for a non-

University organization. A second problem, he noted,

is the potential of a tax difficulty under Section 509

of the Internal Revenue Code. He pointed out that a

foundation could be declared by IRS to be a private

foundation, depending on how funds are received. If

declared to be a private foundation, it would be liable

for an annual six percent tax on net investment income;

base contributions are allowable only to the extent of

20% of the contribution base; contributions in excess

of 20% of base may not be carried over to a future

year; and only one-half of the appreciated value of

long-term securities would be allowable as a tax con-

tribution to a private foundation.



(2) Formation of one or more foundations within the admin-

istrative structure of the University.



Mr. Lessly compared this option to the procedure

followed in the creation, by statute, of the Land

Foundations. He recommended that if this option is

selected, it be done by statute to avoid any poten-

tial tax problem.



(3) Renaming of the current endowment programs of the

University of Nevada System Endowment Program and

creation within that endowment of separate funds for

each institution or other entity.



Mr. Lessly suggested that if this option is selected,

public members could be invited to serve in an advisory

capacity for each separate fund with the Chairman of

each such group serving as a voting member of the

Regents Investment Advisory Committee.



(4) Make no changes in the present methods of fund raising

or of handling endowment funds.



President Crowley urged that some action be taken by the

Regents to resolve what he described as a severe and prolif-

erating problem with implications for the fund raising ef-

forts and also, he suggested, for University governance.

He commented on the growing interest within the University

and within the community for some identifiable entity toward

which fund raising efforts could be directed. Dr. Crowley

suggested that the third option described by Mr. Lessly

offered some movement toward meeting the need, pointing out

that it offers the possibility that if this procedure does

not prove successful, a statutory foundation could be

considered by the 1981 Legislature.



Dr. Crowley also spoke of the existence of one private

foundation for the College of Agriculture, and the very

strong interest currently being expressed for a private

foundation for the College of Business, and suggested that

continued movement in the direction of private foundations

for individual Colleges and other programs will enormously

complicate the fund raising efforts of the University. He

also suggested that creation of such private foundations

could seriously undermine the governing function if allowed

to proceed.



Mr. Mc Bride suggested that the Board approve the endowment

foundations at the three institutions which have requested

them (i. e., UNR, UNLV and CCCC) and that each of these

foundations be authorized to accept funds on behalf of the

appropriate program or purpose.



Mr. Lessly noted that the University presently has two major

funds within the endowment portfolio: one for the benefit

of UNLV, managed by Valley Bank; and one primarily for UNR,

managed by First National Bank, but which had, as of June

30, 1979, $1,000,538 of UNLV funds. He suggested that if a

determination is made to go with individual funds, the Board

would perhaps wish to consider reallocating those UNLV funds

within FNB to Valley Bank.



President Smith asked how the creation of such foundations

would affect the Associates Fund of DRI, which he noted had

previously been approved by the Board and which allows

members of that program to make contributions directly to

DRI, with the funds then managed at the discretion of the

Institute, even to the extent of investing the funds.



Mr. Lessly suggested that perhaps it would be appropriate

that the Associates Fund become the Foundation Fund for DRI;

however, he pointed out that legally all contributions come

to the Board of Regents, but may be used for a specific

purpose and for the benefit of a specific institution if so

directed by the donor.



President Eaton commented on discussions with the CCCC

Advisory Board and the strong interest they have in an

opportunity to establish an identifiable vehicle, such as a

CCCC Foundation, within the structure of the University of

Nevada System. She agreed with the need for coordination in

the total fund raising efforts and suggested that if there

are clearly identified projects associated with each insti-

tution, the necessary coordination would occur and duplica-

tion could be avoided.



Mrs. Knudtsen moved that the Administration be instructed

to develop a recommendation from among the alternatives

discussed, and that this recommendation be placed before

the Board for consideration at its next meeting. Motion

seconded by Mr. Ross.



Chancellor Baepler suggested that there was sufficient

consensus among the Officers to permit action by the Board.

He reviewed the four options offered, suggesting that the

alternative of doing nothing was not acceptable. A second

option to permit and encourage private foundations with no

relationship to the Board of Regents was also, in his opin-

ion, not acceptable. A third option to seek Legislative

approval for statutory foundations could not be acted upon

until 1981 and was, therefore, not the most desirable al-

ternative. He suggested that the remaining option was the

only practical approach and recommended that the Board set

up identifiable foundation boards within each institution,

interface those foundation boards with the Investment

Advisory Committee, and continue to handle the endowment

funds under the current management agreements with the

banks.



Mrs. Knudtsen, with Mr. Ross's concurrence, withdrew her

motion, and it was agreed that the Officers would meet with

Counsel during the lunch recess to develop a specifically

worded recommendation for action when the meeting had

reconvened.



Mrs. Knudtsen moved to table further discussion until after

lunch. Motion seconded by Mrs. Fong, carried without

dissent.



11. Advance Funding, Sports Pavilions



Chancellor Baepler reported that the architects for the two

Sports Pavilions are proceeding with advance planning for

both projects, with the advance planning funded from private

gift monies available to the UNLV project, and a loan to UNR

from the Board of Regents Special Projects Account. In both

cases, there is a limitation of $100,000 on the contracts,

pending availability of the revenue bond proceeds.



Dr. Baepler stated that Mr. William Hancock, Manager of the

State Public Works Board, has recommended allocation of an

additional $100,000 to each project to permit the architects

to continue with the preliminary design work.



Chancellor Baepler recommended that (1) a loan of an addi-

tional $100,000 be approved from Board of Regents Special

Projects Account to the UNR project, to be repaid from the

proceeds of the revenue bonds; and (2) a loan of $100,000

to the UNLV project be approved from the fund established

for the Pavilion from private gift monies, also to be repaid

from the sale of the revenue bonds.



Mr. Ross moved approval. Motion seconded by Mrs. Fong,

carried without dissent.



12. Request from Nevada State Education Association



Chancellor Baepler reported that the Nevada State Education

Association had requested consideration by the Board of

Regents of payment for unused sick leave upon termination

or retirement for professional employees. Dr. Baepler stat-

ed that normally such a request would be considered by the

various Faculty Senates and he recommended this proposal be

referred to the Senates for review and recommendation before

further consideration by the Board of Regents, noting that

the report to the Board on this matter will also include a

general analysis of fringe benefits which is now underway

in relation to the next Biennial Budget Request.



Mrs. Fong moved approval. Motion seconded by Mr. Karamanos,

carried without dissent.



13. Report of Finance Committee



Mr. Mc Bride reported that the Finance Committee had met the

previous day and taken the following actions:



(1) Reviewed the proposals for selection by the Board of

Regents of a Senior Management Underwriter for the rev-

enue bond issue for the two Sports Pavilions and recom-

mends the Board of Regents designate Paine, Webber,

Jackson and Curtis as the Senior Management Underwriter

for the revenue bond issue for the Sports Pavilions,

with the understanding that other firms submitting

proposals (i. e., Bache, Halsey, Stuart, Shields, Inc.;

Dean, Witter, Reynolds, Inc.; and Merrill, Lynch,

Pierce, Fenner & Smith, Inc.) be encouraged to partici-

pate in co-managing the issue, and with the further

understanding that should the anticipated merger of

Blyth, Eastman, Dillon & Co., Inc., with Paine, Webber,

Jackson and Curtis not be consummated, that firm also

be encouraged to participate.



(2) Reviewed the Report to Management from Kafoury,

Armstrong, Turner & Company, the University's inde-

pendent auditors, with representatives from that

firm. All points in the Management Letter were

addressed by the Administration and staff and the

following two items are specifically recommended

for action by the Board at this time:



a. The Finance Committee recommends the Board of

Regents direct the establishment of a joint com-

mittee to review differences between the UNR and

UNLV methods of accountability and budgeting for

revenue and expenditures of the Intercollegiate

Athletic Program funds, and to recommend policies

to the Board of Regents regarding financial activ-

ities and inter-relationships of the Intercolle-

giate Athletics Department. It is further recom-

mended that the Committee, to be appointed by the

Chairman of the Board, be comprised of representa-

tives of the Board of Regents, the Booster Clubs,

the Business Centers, the Intercollegiate Athletic

Departments, and that it be Chaired by the Vice

Chancellor for Finance.



b. The Finance Committee recommends the Board of

Regents allocate $5,500 from the Board of Regents

Special Projects Account to fund the expenses of

training for Internal Audit staff in Transaction

Flow Auditing (TFA).



(3) Reviewed a proposed request to the Interim Finance

Committee for augmentation of the 1980-81 appropria-

tion. This request is submitted in response to a

specific invitation from the 1979 Legislature that,

in the event enrollment at UNR and UNLV increased

above that projected in the Biennial Budget Request,

the University return to the Interim Finance Committee,

for additional funding.



The Finance Committee approved the parameters within

which the proposed request will be developed and rec-

ommends that the Board of Regents authorize such a re-

quest to the Interim Finance Committee for additional

funding for UNR and UNLV for fiscal year 1980-81.



Mr. Mc Bride requested approval of the Board of the recom-

mendations of the Finance Committee.



Dr. Lombardi moved approval. Motion seconded by Mr. Ross,

carried without dissent.



14. Appointment of Acting Dean, School of Medical Sciences, UNR



President Crowley recommended appointment of Dr. Ernest L.

Mazzaferri as Acting Dean of the School of Medical Sciences,

effective immediately and continuing until appointment of a

permanent Dean, expected by Summer 1980, at the conclusion

of a national search. A copy of Dr. Mazzaferri's vita was

included with the agenda (identified as Ref. C and filed

with permanent minutes).



Mrs. Fong moved approval. Motion seconded by Mrs. Whitley,

carried without dissent.



15. Request for Discussion of Reorganization of Audio-Visual,

Communications and Broadcasting Departments, UNR



At the request of Mrs. Fong for a presentation concerning

the recent reorganization of the UNR Audio-Visual, Commu-

nications, and Broadcasting Departments, President Crowley

distributed a background paper and briefly summarized the

reorganization which had occurred. (Background paper filed

with permanent minutes.)



Mr. Ross moved that the Board approve the reorganization

described and ratify the action of President Crowley.

Motion seconded by Mr. Mc Bride, carried with Mr. Buchanan

opposing.



Mrs. Fong thanked President Crowley for clarifying the re-

organization and said she would like to see further efforts

made to bring the remaining Audio Visual activities, such

as those within the College of Agriculture, under the sup-

ervision and control of the overall University Department.



16. Proposal for Study of Administrative Structure



President Crowley requested an allocation of up to $5,000

from the Board of Regents Special Projects Account for the

purpose of conducting a comprehensive review of UNR's ad-

ministrative structure. He noted the 1978 Accreditation

Report on the University of Nevada, Reno had commented on

certain peculiarities of the University's administrative

structure, and he suggested that there were perhaps other

organizational anomalies not addressed in the Report.



Dr. Crowley pointed out that the administrative structure at

UNR has developed over time, with particular offices or

functions created at particular periods to meet particular

needs. Thus, the current structure is an accumulation of

organizational decisions made over a period of time and he

suggested that with a new President installed and two Vice

Presidential positions in the process of being filled, cer-

tain improvements in the administrative structure can and

should be made at this time.



Dr. Crowley proposed that the review be undertaken by a team

appointed on the basis of consultation with the Northwest

Association of Schools and Colleges, with the report on this

review providing a basis for recommendations on reorganiza-

tion. Subsequent to discussion of the report and recommen-

dations with appropriate Campus units, they would be sub-

mitted to the Board of Regents for action, with the goal

of accomplishing any recommended reorganization by July 1,

1980, or as soon as possible thereafter.



Chancellor Baepler recommended approval, noting that the

accreditation report was mildly critical of certain organ-

izational aspects at UNR, and suggested that if there are

also critical comments in the accreditation report of UNLV

next Summer, a similar study of UNLV will be proposed.



Mr. Buchanan moved approval. Motion seconded by Dr.

Lombardi, carried without dissent.



17. Request for Loan for Sage Building Remodel



President Smith reported that an Ad Hoc Commission of the

International Nucleation Committee of the International

Commission on Cloud Physics (ICCP) had recently selected the

Desert Research Institute to host a nucleation workshop in

October, 1980. Participants from all over the world, in-

cluding Russia, have indicated an interest in the workshop.

Co-sponsorship is anticipated from the National Aeronautics

and Space Administration and National Science Foundation.



To accommodate this workshop, and to correct a safety hazard

in the Sage Building, President Smith requested a loan of up

to $75,000 from Board of Regents Special Projects Account

to fund the necessary remodeling of the Sage building, with

the loan to be for a five-year period and to be repaid from

Indirect Cost Recovery. Information concerning the proposed

remodeling to correct the safety problem and to convert

vacated space to an aerosol laboratory was included in a

memorandum from President Smith (identified as Ref. E and

filed with permanent minutes). Chancellor Baepler recom-

mended approval of the loan.



Mrs. Fong moved approval. Motion seconded by Mr. Mc Bride,

carried without dissent.



The meeting adjourned for lunch and a meeting of the Investment

Advisory Committee, and reconvened at 1:45 P.M.



18. Report of Investment Advisory Committee



Mr. Karamanos reported that the Investment Advisory Commit-

tee had met during the lunch recess and had taken the fol-

lowing actions:



(1) Received a proposal from Mr. Lew Shuman of American

Investors Managements, Inc., for the investment of

$200,000 in a note paying 15% interest; this note is

secured by an assignment of a $308,000 note secured by

a first deed of trust on a warehouse in Las Vegas. In-

come from this investment would constitute a portion of

endowment income for a Chair in Historic Preservation

at UNR. The $200,000 principal was received within the

past week from the estate of Mary Etta Sugden, and the

remaining $200,000 from that estate will be managed by

Security National Bank (proposal filed with permanent

minutes).



The Investment Committee recommended approval of Mr.

Shuman's proposal.



(2) Recommended approval of the request of Mr. Monte Miller

of Valley Bank to purchase the following stock:



700 shares of Halliburton at $70, total purchase of

$49,000

1300 shares of Union Oil at $38, total purchase of

$49,400

1000 shares of International Paper at $38, total pur-

chase of $38,000.



The Committee also recommended an extension in the

maturity range of previously-approved purchases of

$200,000 in U. S. Government Bonds, 1985 to 2010.



(3) Recommended approval of the request of Mr. Bob Lee of

First National Bank for open authorization for the

following purchases at no more than 10% above the

prices listed:



5200 shares of Bankers Trust at $38

approx. value: $ 197,600

4200 shares of General Electric at $47

approx. value: $ 197,400

5000 shares of Alcan Alumnium at $38

approx. value: $ 190,000

3000 shares of Merck at $65

approx. value: $ 195,000

4500 shares of Union Oil at $44

approx. value: $ 198,000

2100 shares Texas Instruments at $92

approx. value: $ 193,200

6200 shares of Syntex at $32

approx. value: $ 198,400

10000 shares of Inco at $19

approx. value: $ 190,000

5000 shares Conoco at $40

approx. value: $ 200,000

200M Bally Corp. 6% cvt bond at par

approx. value: $ 200,000

200M Pan American Air cvt 7-1/2% bond

approx. value: $ 190,000

6800 Crocker National at $29

approx. value: $ 197,200

4500 Mc Donald's at $44

approx. value: $ 198,000

5000 Allied Chemical at $40

approx. value: $ 200,000

3000 NCR Corp. at $66

approx. value: $ 198,000

1500 Ex-Cell-O at $32

approx. value: $ 48,000

600 Datapoint at $80

approx. value: $ 48,000

3100 Ponderosa Systems at $16

approx. value: $ 49,600

2000 Spectra-Physics at $25

approx. value: $ 50,000

1500 Advanced Micro Devices at $32

approx. value: $ 48,000

1400 Computervision at $34

approx. value: $ 47,600

2600 Concinnati Milicron at $19

approx. value: $ 49,400

Total $3,283,400



The following purchase recommendations are for the

Engel Unitrust:



100 shares Esmark, Inc. at $28

approx. value: $ 2,800

200 shares Bankers Trust at $39

approx. value: $ 7,800

150 shares General Electric at $48

approx. value: $ 7,200

100 shares American Brands at $62

approx. value: $ 6,200

400 shares El Paso Co. at $20

approx. value: $ 8,000

200 shares Exxon at $57

approx. value: $ 11,400

200 shares Beneficial Corp. at $26

approx. value: $ 5,200

100 shares General Motors at $59

approx. value: $ 5,900

400 shares Cincinnati Gas & Elec. at $17

approx. value: $ 6,800

200 Alcan Alumninum at $37

approx. value: $ 7,400

Total: $ 68,700



(4) Received a brief report from Mr. Tom Josephson of

Security National Bank; no new recommendations were

presented.



Mr. Karamanos requested approval of the Committee's

recommendations.



Dr. Lombardi moved approval. Motion seconded by Mrs.

Knudtsen, carried without dissent.



Discussion resumed on Item #10, Policy Decision Concerning

Establishment of Foundations



Mr. Lessly read the following proposal developed by the

Officers:



To officially designate the present University of Nevada

System endowment program as the University of Nevada

System endowment.



To create within that endowment framework the Univer-

sity of Nevada, Reno, Foundation Fund; the University

of Nevada, Las Vegas, Foundation Fund: the Desert

Research Institute Associates Foundation Fund; the

Clark County Community College Foundation Fund; the

Northern Nevada Community College Foundation Fund:

and a foundation fund for each of the present Campuses

of Western Nevada Community College to be officially

designated by name at such time as the name of each

institution is arrived at by the Board of Regents.



To sever from the account presently maintained by First

National Bank of Nevada on June 30, 1980, those funds

dedicated to the benefit of the University of Nevada,

Las Vegas, and to transfer those funds to the Univer-

sity of Nevada, Las Vegas, Foundation Fund to be man-

aged by Valley Bank of Nevada.



To authorize the President of each institution having a

foundation fund to nominate, subject to the approval of

the Board of Regents, individuals to serve as members of

a foundation fund board.



To authorize each foundation fund board to elect its own

Chairperson.



To designate each Chairperson elected as a voting member

of the Regents Investment Advisory Committee with au-

thority to vote on investment matters pertaining to the

foundation fund he or she represents.



To continue the special funds presently existing for the

support of the Fleischmann Atmospherium/Planetarium and

the Veterinary Sciences program at the University of

Nevada, Reno, without necessity of appointment of a

foundation board for such funds.



To authorize each institution within the System to seek

approval from the Board of Regents for additional foun-

dation funds on a case by case basis should the need

arise.



To maintain existing subsidiary accounts for deferred

giving that presently exist throughout the University

of Nevada System.



To provide for review by the Board of Regents of the

performance of the University of Nevada System Endow-

ment one year from the date hereof to determine whether

it would be in the best interests of the System or any

of its entities having a foundation fund to seek Re-

gents' approval to secure legislative authority for

the formation of statutory foundations.



Mrs. Knudtsen moved approval. Motion seconded by Mrs. Fong,

carried without dissent.



19. Collective Bargaining Election Results



Chancellor Baepler reported the following results of the

secret ballot elections held in conformance with the Board's

action at the September 21 meeting:



Yes No Void



NNCC October 16 5 8 0

WNCC/S October 17 0 34 1

CCCC October 18 33 35 2

WNCC/N October 19 28 10 0



Total 66 87 3



Dr. Baepler also reported that the costs for services and

expenses of the election supervisor employed to oversee the

election were $1400, plus transportation costs of $122, for

a total cost of the supervision of the election exclusive

of University personnel of $1522. He requested these costs

be funded by allocation from the Board of Regents Special

Projects Account.



Mrs. Fong moved approval. Motion seconded by Mr. Karamanos,

carried without dissent.



20. Proposed Actions Concerning Community College Division



Chancellor Baepler recalled that at the September meeting,

the Board approved a proposal to amend the Board of Regents

Bylaws, the University Code, and all other pertinent Uni-

versity documents to remove the word Division as it pertains

to an organizational entity of the University System, and

that hereafter the organization of the University of Nevada

System include UNR, UNLV, DRI, CCCC, NNCC and WNCC as auton-

omous and independent institutions.



The action of the Board also directed the consideration of

the elimination of the as-yet unfilled position of Vice

Chancellor for Community Colleges. The Board also requested

that consideration be given to the feasibility of separating

WNCC into two Colleges.



Dr. Baepler reported that the necessary revisions to the

Bylaws have been prepared and included with the agenda for

first reading, with final adoption by the Board possible at

the December meeting. (Proposed revision identified as Ref.

F and filed with permanent minutes.) In addition, the

necessary revision to the Code to dissolve the Division

structure of the University System and to separate WNCC into

two Colleges has also been prepared and is now before the

various Senates, needing only a recommendation on names of

the two resulting Colleges. Assuming consideration by all

Senates is completed sufficiently in advance, action by the

Board to approve the necessary Code revisions can also be

scheduled for the December meeting.



Chancellor Baepler commented on the suggestion at the

September meeting that consideration be given to the

abolition of the as-yet unfilled Vice Chancellor position.

He recalled that for some time a position has been budgeted

in the Chancellor's Office to provide for coordination among

the Community Colleges. The position, originally titled

Community College Coordinator, had been retitled in June to

Vice Chancellor for Community College Affairs, the search

was reopened and re-advertised, with an application deadline

of October 1. Dr. Baepler commented that he was now in the

final stages of recruiting for a Vice Chancellor for a Di-

vision that the Board has indicated it will abolish, but the

Community Colleges are still left with the need for some

centralized help which cannot be provided by the current

staff in the Chancellor's Office.



Dr. Baepler recommended that the position be retitled

"Community College Analyst", at a salary range of $18,000

to $20,000, that a secretary be provided, and that appli-

cants for the Vice Chancellor's position be informed that

the position has been abolished. He further proposed that

the position be filled by internal recruiting, noting that

there are currently two individuals within the Chancellor's

Office who would be qualified.



Mr. Buchanan moved that the position of Vice Chancellor for

Community College Affairs be eliminated and that action on

the proposed analyst be deferred until final decision is

reached on the Division status. Motion seconded by Mr.

Karamanos.



President Berg expressed concern that this substitute

position, filled at the level proposed by the Chancellor,

would not offer the kinds of services originally envisioned

when the coordinator position was first proposed, partic-

ularly in the areas of institutional research, budget

management, master planning, and essential coordinating

functions in areas of statewide concern. He urged that the

Board consider a position at the level originally proposed

before it was converted to a Vice Chancellor and emphasized

the need for a resource person with the appropriate back-

ground to provide the kind of assistance needed from time

to time.



Mr. Buchanan suggested that perhaps it would be better to

provide this kind of assistance directly to NNCC through an

assignment of an additional position to that College, rather

than having a System-wide position in the Chancellor's

Office.



President Eaton reported that the Advisory Board for CCCC,

as well as Student Government, Faculty Senate, and members

of the administrative staff, had reviewed the question of

Division status and the role of the Vice Chancellor, and

believed that the essential thrust of the Chancellor's

recommendation would best serve CCCC. She suggested that

because of the size and number of students which CCCC is

attempting to serve, there is a need for someone in Reno

who can function in this resource capacity, to maintain the

master course file, and to take care of essential staff

functions affecting all of the Community Colleges.



President Davis also supported the Chancellor's recommenda-

tion, stating that he believed a person at the analyst level

would meet the needs of WNCC.



Mr. Ross suggested that consideration be given to providing

NNCC with the necessary assistance through the sharing of

resources and staff from the other Campuses from time to

time as needs are identified by the President.



Mr. Ross moved to amend Mr. Buchanan's motion to direct that

it be the policy of the Board of Regents to provide neces-

sary support services to NNCC as needed. Motion to amend

seconded by Mr. Buchanan.



It was agreed that at the December meeting the Chancellor

would provide information concerning the areas in which the

Community College Analyst would work, the necessary quali-

fications and requirements, and a position description.



Motion to amend carried without dissent. Amended motion

then carried without dissent.



21. Assistant to the President, CCCC



President Eaton requested approval to shift an administra-

tive budgeted vacant position from the Office of the Dean

of Instruction to the Office of the President, to be titled

"Assistant to the President", with responsibility for master

planning, grant preparation, budget management, and the

College Planning, Management and Evaluation System.



Mr. Mc Bride moved approval. Motion seconded by Dr.

Lombardi, carried without dissent.



22. Institutional Studies Special Project, CCCC



President Eaton commented on a series of major institutional

studies initiated by CCCC to determine short and long range

program and service needs of the community. These include

a community needs assessment, student profile study, and

student perception study.



Dr. Eaton requested authorization to allocate $22,660 from

the CCCC Bookstore Account in order to provide for comple-

tion of this special project. The amount requested will

cover postage, mailing, printing and paper, personnel and

clerical costs for the undertaking. Chancellor Baepler

recommended approval.



Mr. Karamanos moved approval. Motion seconded by Mrs. Fong,

carried without dissent.



23. Northwest Accreditation Expenses, CCCC



President Eaton reported that CCCC is currently preparing

its self-study documents for consideration by the Northwest

Association for reaffirmation of accreditation. Self-study

efforts will culminate in a three-day site visit in April,

1980. The estimated cost, including the visitation fee,

preparation of self-study documents and appropriate hosting

of the visiting team, is $9,531.



President Eaton requested authorization to allocate this

amount from the CCCC Bookstore account. Chancellor Baepler

concurred.



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

carried without dissent.



24. Allocation from Board of Regents Special Projects Account,

NNCC



President Berg requested an allocation of $5,185 from the

Board of Regents Special Projects Account to fund the pur-

chase by NNCC of a new automobile to replace one of the

two 1973 vehicles available to the College. He stated that

he anticipated that sufficient funds would be available at

year end for this purchase and the vehicle was ordered on

that assumption; however, sufficient funds did not materi-

alize. Chancellor Baepler recommended approval.



Mrs. Knudtsen moved approval. Motion seconded by Mrs. Fong,

carried without dissent.



25. Appointments to Advisory Board, NNCC



President Berg recommended that Carl Schuck and Art Glaser

be appointed to the NNCC Advisory Board to replace Mr. Hugh

Mc Mullen and Mr. Mel Lundberg.



Mrs. Knudtsen moved approval. Motion seconded by Mr. Ross,

carried without dissent.



26. Allocation for Advisory Board Expenses, WNCC



President Davis requested an allocation of $1,200 from the

Board of Regents Special Projects Account to fund host ex-

penses related to dinner meetings for the WNCC Adisory

Board. Chancellor Baepler recommended approval.



Mr. Karamanos moved approval. Motion seconded by Mr.

Buchanan, carried without dissent.



27. Chancellor's Report



Chancellor Baepler reported that President Davis will be

traveling out of the country in December to Casablanca and

Rome to attend a World Boxing Council meeting.



Chancellor Baepler also reported that the Senate Chair-

persons are forming an ad hoc committee to analyze possible

alternatives which might offer relief to the critical salary

situation created by inflation. Recommendations coming from

that ad hoc committee will be referred to the Finance

Committee.



28. Commendation to Dr. Thomas Scully



Mrs. Fong moved that the Board of Regents send a letter of

commendation to Dr. Thomas Scully for his service to the

School of Medical Sciences. Motion seconded by Mr. Mc Bride

carried unanimously.



29. Proposed Law School



Chairman Cashell recalled that at the September meeting, Mr.

Mc Bride had requested that the November agenda include dis-

cussion of whether action taken by the Board in December,

1978, endorsing the concept of a Law School, should be re-

affirmed. Subsequently, a copy of the previous Law School

Study of 1975 and its 1979 update and pertinent excerpts

from minutes of the Board of Regents were furnished to the

Regents and Officers.



Mr. Buchanan suggested that before proceeding there would

have to be a motion for reconsideration of the Board's ac-

tion at the previous meeting. Mr. Mc Bride disagreed, re-

calling that the Board's action at the previous meeting was

to authorize the Chairman to appoint a committee to raise

funds and that was not what he had requested be discussed.



Mr. Buchanan requested an interpretation of the request for

this agenda item. Chancellor Baepler reviewed the request

as stated in the September minutes and Counsel advised that

this was a request for reaffirmation of the concept of a Law

School and did not require a motion for reconsideration.



Mr. Mc Bride moved that the Board reaffirm the concept of a

Law School. Motion seconded by Mr. Ross.



Mr. Mc Bride stated that even though he was offering the

motion for reaffirmation, he intended to vote against it,

explaining that he had originally intended to offer two

separate motions but had been challenged by Mr. Buchanan,

and had thus decided on this procedure.



Mr. Buchanan stated that he had a list of 6 persons who

wished to be heard concerning the Law School. It was

agreed that each speaker would be limited to three minutes.



Speaking in support of a Law School were Lisa Wyman, Rick

Oshinski, Susana Reyes, Dale Hulen, Kelly Campbell and

Belinda Malone, all students at UNLV.



In addition, Katherine Slocum, Clark County Law Library

Director, presented a report she had prepared at Mrs. Fong's

request concerning the startup costs for a Law Library. Ms.

Slocum stated that the standards of the American Bar Associ-

ation and the American Association of Law Schools require

that for a Law School to achieve accreditation, the Law

Library must have a minimum of 60,000 volumes to start.

She calculated that acquisition of these volumes would cost

about $990,000, but suggested this could be reduced perhaps

to $750,000 by careful purchasing of used materials and by

taking advantage of publishers' discounts. She stressed

that this was the minimum for the first year, with the ac-

crediting agencies looking very carefully at how much is

spent each year for additional acquisitions, whether all

sets are kept updated, whether discretionary volumes are

meeting the needs of the curriculum, whether they are pro-

viding assistance for special areas of interest. Ms. Slocum

also pointed out that the American Bar Association standards

specifify that physical facilities of the Law Library shall

be under the exclusive control and reserved for the exclu-

sive use of the Law School.



Vice President Dixon reported that he had recently talked

with the Business Officer of Lewis and Clark College in

Portland, Oregon, who had stated to him that their Law

School is presently running at a break-even point, and is

not subsidized from general University resources. Their

experience, he said, is that the tuition for the Law School

is sufficient for the operating budget, staff and Library of

the School.



Mr. Buchanan stated that he believed the impetus for a Law

School at this time was strong and that sufficient money

could be obtained from private donors for the necessary

capital improvements and a Law Library on the UNLV Campus

and suggested that beyond those initial expenses, the Law

School could be self-sustaining. He urged the Board to

vote to reaffirm the Law School, after which he said he

would go forward with his committee to raise the necessary

funds.



Mr. Mc Bride commented on his motion, stating that he was

not against the Law School and regretted very much that he

had been put in the position of having to vote against his

own motion and to, in effect, ask the Board not to reaffirm

its earlier action endorsing the concept of a Law School at

this time. Mr. Mc Bride expressed concern that if the Uni-

versity were to proceed with plans for a Law School, after

having had two separate requests rejected by the Legisla-

ture, it would be regarded by the Governor and the Legis-

lature as nothing less than a "thumbing of the nose", and

would most certainly, in his opinion, result in some form

of retaliation. He advised that the Board direct a further

study to determine the facts that are missing and that the

results of that study be submitted to the Board in April,

1980.



President Goodall stated that he believed that every State

should, at some point, have a Law School, and that when

Nevada has a Law School, he believed it ought to be in Las

Vegas. However, he said, he would prefer to speak to both

of these points on another occasion. He noted his concern

at this time was that the issue before the Board would seem

to be leading toward a vote of yes or no on a Law School and

suggested that was perhaps not the precise issue the Board

wanted to address. He suggested a substitute motion, along

the lines of the additional study proposed by Mr. Mc Bride,

be considered.



Mr. Ross agreed, stating that the matter of a Law School was

a decision that was too important to all concerned to be

made in the midst of confusion and disagreement. Mr. Ross

moved to amend Mr. Mc Bride's motion to reaffirm the con-

cept of a Law School, with the understanding that if reaf-

firmation is given, the Board also authorize the Chairman

to immediatley appoint a select committee of Nevadans to re-

view and recommend to the Board professional consultants to

update the 1975 Law School Study and to recommend consult-

ants to review a Law School within the priority of other

needs and to report back to the Board of Regents.



Motion to amend seconded by Mrs. Knudtsen.



In response to a request for clarification of the intent of

the amendment, it was agreed that if the amendment and the

original motion passed, the Board would be on record as

reaffirming the concept of a Law School, the Chairman would

appoint a committee of select Nevadans to recommend (1)

consultants to update the 1975 Law School Study, and (2)

consultants to review and develop a master plan for profes-

sional schools (e. g., Architecture and Veterinary Medicine)

for the next decade, with funds for these consultants to be

provided from the Board of Regents Special Projects Account.

It was further agreed that a master plan for professional

schools would also address the question of location of the

Medical School. Both reports -- the Law School Report and

the Master Plan for Professional Schools -- would be sub-

mitted to the Board at its April meeting.



It was also agreed that the Board's earlier action creating

Foundation Funds, each with its own Board, would obviate the

appointment of a committee for the Law School.



Motion to amend carried without dissent. Amended motion

carried without dissent.



30. New Business



(1) Mr. Cashell asked that the December agenda include an

action item calling for the appointment of a System

Committee to conduct a study of Faculty Workload, and

a second committee for the study of Graduate Programs.

He also requested that the December agenda include

consideration by the Board of a request for the devel-

opment of a master plan examining and defining the

roles and relationships of the several institutions

within the University of Nevada System.



(2) Mr. Mc Bride requested that the Presidents of each of

the institutions be requested to submit to the Chancel-

lor and to the Board of Regents a comprehensive plan

outlining where the institution is today, where it

plans to be in two years, and in five years, in terms

of its goals and objectives.



At the request of the Chairman, Mrs. Fong moved that the Board go

into personnel session for the purpose of considering the pro-

fessional competence of an individual. Motion seconded by Mr.

Mc Bride, carried without dissent.



Following a personnel session, the meeting adjourned at 4:35 P.M.



Bonnie M. Smotony

Secretary of the Board

11-02-1979