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