December 1-2, 1995
BOARD OF REGENTS
UNIVERSITY AND COMMUNITY COLLEGE SYSTEM OF NEVADA
December 1, 1995
The Board of Regents met on December 1, 1995 in Hall of Fame Room
at Lawlor Events Center, University of Nevada, Reno.
Members present: Mr. Madison Graves, II, Chairman
Mr. Mark Alden
Ms. Shelley Berkley
Dr. Jill Derby
Dr. James Eardley
Mr. Joseph M. Foley
Mrs. Dorothy S. Gallagher
Mr. Daniel J. Klaich
Mr. David L. Phillips
Mrs. Nancy Price
Mrs. Carolyn M. Sparks
Others present: Chancellor Richard Jarvis
President Joseph Crowley, UNR
President Carol Harter, UNLV
Vice President Robert Silverman, CCSN
President James Randolph, WNCC
President Ronald Remington, GBC
President James Taranik, DRI
President Kenneth Wright, TMCC
Mr. Donald Klasic, General Counsel
Dr. Tom Anderes, Vice Chancellor
Dr. John Richardson, Vice Chancellor
Mrs. Sue Baker, Acting Secretary
Chairman Graves called the meeting to order at 9:55 A.M. Friday,
December 1, 1995, with all Regents present.
Also present were Faculty Senate Chairs or their representatives:
Scott Casper, UNR; Jerry Landwer, UNLV; Sonny Lyerly, CCSN; Larry
Hyslop, GBC; Steve Streeper, TMCC; Becky Seibert, System Adminis-
tration; Dick French, DRI; and Rick Riendeau, WNCC: and Student
Government Officers Glenn Booth, ASUN (UNR); Jeanine Powers, USA
(WNCC); John Pida, CSUN (UNLV); Karen Ronk, ASB (GBC); Barbara
Mc Millan, ACCSN (CCSN); John Cole, ATSM (TMCC); Julie Longtin,
GSA (UNR); and Ken Harlan, GSA (UNLV).
Chairman Graves announced that the Secretary, Mary Lou Moser, was
in the hospital with an emergency situation and would not be
present for the meeting, and that Mrs. Sue Baker would be Acting
President Harter introduced Charles Cavagnaro, Athletic
Director at UNLV, and Jeff Halvorson, Dean of Admissions
and Registration, UNLV.
2. Chairman's Report
Chairman Graves spoke at the Girls and Boys Club at CCSN
for the dedication of the evening day care program. The
original target was to serve 100 children, but after four
months of operation, the program has over 300 children dur-
ing the hours of 5:00-10:00 P.M. The program is at no cost
and tutoring, arts and crafts, sports, etc. are provided.
The Girls and Boys Club provide supervision for the program
by hiring high school students who earn points toward schol-
arships at CCSN. Over 31% of the CCSN students are from 22-
29 years of age, and 55% of those are female, mostly working
mothers, so this program provides a tremendous opportunity
for those seeking higher education. This program will be a
model throughout the nation, and other UCCSN Presidents
might want to consider such a program. Chairman Graves com-
mended CCSN staff and President Moore and Michael Moore, Di-
rector of the Boys and Girls Club. They are considering
having a nominal charge beginning next semester and with
those funds the program would be expanded to the West
Charleston Campus; they will also provide scholarships for
those students in need who cannot afford the nominal charge.
Regent Alden stated that he serves on the Henderson Boys and
Girls Club Board of Directors, where Dr. Moore and Dr. Meeks
will be instituting the same program in Henderson. Regent
Klaich suggested that as fees go up, CCSN might allow some
parents to volunteer to work in the Center in payment for
3. Chancellor's Report
Chancellor Jarvis attended the Western Governors' Associa-
tion meeting at the invitation of Governor Miller. The
group focused 1/2 of its meeting on the theme of Higher
Education and Technology. There were about a dozen Gover-
nors from Western States in attendance. Many different
ideas were discussed, some of which would be very useful
for Nevada. Two things emerged, in which Nevada should play
a part in shaping: 1) Governor Leavett, Utah, is promoting
a "Smart States Initiative", which is a way for states to
share and/or coordinate their programs such as information-
technology based programs. The Chancellor discussed this
idea with Marlene Lockhard, Nevada's Director of Informa-
tion Systems, and they will hold follow-up meetings to
determine how this will fit into Nevada, and 2) A resolution
was passed at the meeting to create a "Regional Virtual Edu-
cational University", which had much to do with Governor
Romer's interest to open up the educational enterprise to
both traditional providers, such as UCCSN, and also to non-
traditional enterprises. It was clear that Governor Romer
was trying very hard to break what he calls the strangle
hold that higher education has on credentialing in the way
in which training and education is provided to greatly in-
creasing populations. The Chancellor will provide further
information in writing after debriefing the meeting with
the Governor's staff.
The Chancellor expressed his great appreciation for the in-
terest shown by Governor Miller and his staff and for the
opportunity to work with them in participating in this re-
gional initative. It was an exciting meeting with a lot of
possibilities for Nevada.
President Taranik related that he had been appointed by
Governor Miller to serve on the Grand Canyon Visibility
Transport Commission's Public Advisory Committee, which is
hearing the public's concerns about the whole concept of
clean air corridors. This corridor extends from Southern
California through Clark County up through Denver. The
final report is to be completed in March. Also, DRI faculty
are serving on the technical advisory groups, alternative
assessment committees, etc.
Presidents reported for their Campuses:
President Jim Randolph, WNCC, recognized Ms. Jeanine Powers,
USA President, who has served two years. Jeanine is trans-
ferring to Simpson College in Redding, California. Ms.
Powers introduced Sabrina Mc Kinley who will take over the
Presidency of USA on January 1, 1996.
President Ken Wright, TMCC, reporting that TMCC is conduct-
ing searches for 2 Vice Presidents with decisions to be made
by the first of the new year. They have begun a long-term
planning effort under the leadership of Dr. Rita Gubanich.
A 3-day conference is planned for the Spring which will in-
corporate 64 people, 30 of whom will be from outside the
College, to assist in this comprehensive planning. TMCC is
addressing facilities for the technology area.
President Jim Taranik reported that the Bechtel Corporation
has been selected as the major contractor at the Nevada Test
Site. Dr. Howard Wahl, President of Bechtel Europe, is on
the DRI Foundation Board. Dr. Wahl arranged a trip for Dr.
Taranik to meet the key participants of Bechtel San Francis-
co, which has an interest in doing some major developments
in Nevada beyond the Nevada Test Site.
President Ron Remington related that GBC is bringing togeth-
er the communities of the Great Basin. Beginning in Elko,
a community master planning effort is underway, which in-
volves city, county, school district, airport authority,
convention center, Northeast Nevada Development Authority,
and the College and the hospital to share general plans and
to coordinate efforts and to be supportive of one another.
The potential is very great for a positive experience for
Vice President Bob Silverman, CCSN, expressed thanks and
appreciation to the Chancellor and the Regents, particularly
Regent Graves, for their support, in the endeavor with the
Girls and Boys Club effort. CCSN's Cheyenne Campus is now
an officially designated Boys and Girls Club of the National
organization. Vice President Robert Hoover, UNR, shared his
master plan with the CCSN faculty which proved very helpful.
They will be embarking on additional projects with UNR in
the future. There will be a community celebration for the
opening of the new building at the West Charleston Campus
in early January.
President Carol Harter stated that UNLV has 14 committees
writing goals, and will begin a review of the draft goals
next week. Dr. Rebecca Mills was recently appointed as
the Special Assistant for Planning, Assessment and Insti-
tutional Research to coordinate these planning efforts. 150
high school students attended Governor Miller's Science and
Technology Day. They worked with faculty and University
students in getting an orientation to University level sci-
ence. A computer science team won a Western Regional compe-
tition and is now qualified to enter the national competi-
tion. Dr. Mary Patterson, Health Administration Program,
represents 1 or 2 successful grantees for a potential $6
million USAID grant that will take health administrators to
Czechoslovakia and other underdeveloped or newly developing
countries which don't know much about sophisticated health
administration to assist them in applying these techniques.
Discussions continue with Dr. Brian Cram, Superintendent of
CCSD, for developing a professional practice school on the
UNLV Campus. This would be a magnet school for the profes-
sional practice in teaching, and would combine UNLV and CCSD
faculty on many projects and which would give student teach-
ers an opportunity to intern at schools for children at-risk
in K-8 grades.
President Joe Crowley, UNR, reported that the Manufacturing
Assistance Program (MAP) is now being implemented. This
program arises out of UNR's effort to expand the Land Grant
model to encompass the entire spectrum of programs, and to
borrow from that model a variant of the Cooperative Exten-
sion idea. The MAP program is done in cooperation with
Truckee Meadows Community College and Western Nevada Commu-
nity College. Two field agents have been hired; one is
stationed at Old Town Mall (TMCC) and the other at the
Economic Development Office in Carson City, whose job it
is to put the institutions in touch with the growing manu-
facturing industry in the northern part of Nevada and to
let them know the assistance that is available to the com-
panies from the 3 institutions. Thus far, the agents have
dealt with 250 companies. As an example of their work, one
initiative involved Total Quality Management, delivery ad-
vice to 6 companies who joined together in the effort. A
seond example is a company in the Carson-Douglas area that
was experiencing difficulties with logistics. Through an
agent, an intern from the Logistics Management Program who
had done his Summer internship at the Ford Motor Company,
was placed with the company. He was able to solve their
problem, and has now become a paid employee of that company.
Mr. Ron Zurek is in charge of the program and plans to dis-
cuss the program with other UCCSN institutions to expand it
into a Systemwide program. The University Press' Annual
Book Fair and Signing was held the night before and was very
successful. Authors were present to sign their books, and
as an example Steve Trimble, the photographer of the book
"Earthtones", and Ann Ronald.
Mr. Foley expressed his appreciation to DRI and their in-
volvement with Bechtel Corporation. He related that he had
been instrumental in arranging for a meeting for the Chan-
cellor with the top executives of Bechtel to explain their
concerns and programs at the Nevada Test Site. The Chancel-
lor related that all the UCCSN institutions were interested
in working with Bechtel. That company was one of the big 6
companies in building Hoover Dam and they have been in this
State since that time.
4. Regents' Workshop: Budget Development
Vice Chancellor Tom Anderes presented a workshop on the
development of the UCCSN Biennial Budget Request for 1997-
99. He distributed a handout, "Functions, Funding and
Formulas", to be used as a guide during the whole budget
process over the next several months. (Document on file
in the Regents' Office.)
He posed a number of questions around which the discussion
was held: What are the key dates in the Biennial Budget
process? What are the most important pieces of the budget
to understand? What are the expectations of the State re-
garding higher education? What are some trends that should
be considered as budget decisions are made? What issues
will likely be most visible in the budget development proc-
ess? Are the issues addressed in the Regent's Strategic
In answer to a question concerning enrollment projections
from Regent Price, Dr. Anderes explained that UCCSN has an
enrollment consultant who is visiting each Campus to discuss
with the President and staff members the history, programs,
future programs, and to obtain a flavor of past, present
and a sense of the future. The consultant will confer with
the Chancellor and the Council of Presidents to review his
findings and recommendations. A uniform process will be
developed through this consultant. Mrs. Price asked whether
the State allocates funds based on projections, and that if
the enrollment is not met, whether the System was still al-
lowed the funds. Dr. Anderes replied that was the case.
Programs: Dr. Anderes related that the 1995-96 Operating
Budget was built on programs, as was the last Biennial
Budget Request. This is a structure which is used national-
ly. He reviewed the definitions of terms and formula vari-
ables in each of the programs: Instruction, Research, Pub-
lic Service, Academic Support, Student Services, Operation
and Maintenance of Plant, Institutional Support, and Schol-
arships and Fellowships.
The meeting recessed at 11:00 A.M. and reconvened at 11:10 A.M.
with all Regents present.
4. Regents' Workshop (continued)
Vice Chancellor Anderes summarized the programs as a method-
ology of looking at various activities, grouping similar
activities together, then as funds become available, pro-
grams and sub-programs can be identified. This will be the
primary structure for the budget request to the Governor
and the Legislature.
Formulas are just a mechanism to quantify the amount neces-
sary or adequate to meet a level of service. In fact, the
formula is a very minor subset of the intention and the
purpose of the program and the activities within the pro-
gram. The value of the formula is simply to tell everyone
of the amount of money it takes to do something, and do it
well, and if you are expending less than that amount, it
provides an opportunity to point out that it is impossible
to do the various activities within the program because of
insufficient funds. That, then, points out where there is
a problem. He gave an example of Student Services: To
adequately run the program, the amount should be $1 million,
but is funded at $500,000. A determination must then be
made as to where the underfunding occurs: financial aid,
student health, student counselors, etc. Therefore, the
program structure is used to justify where the funding gap
Mr. Foley stated that he has always felt the System should
stress the needs of particular programs, rather than just
stress that the formulas should be funded, and that the
Legislature should be the ones to cut the programs. He
continued that he felt the Legislature uses the formulas as
an escape, that they do expect the program to be carried on
whether or not it is fully funded. Dr. Anderes stated that
he felt it was incumbent upon the System to provide for the
Governor and Legislature how the funds for full funding of
the gap would be spent. Mr. Klaich objected to asking the
Legislature to cut programs. He agreed that the formulas
are not perfect, but that they do work for the System at the
Mrs. Price asked whether Presidents have unlimited ability
to transfer funds. Dr. Anderes replied that they did not;
that appropriations are based on expectations of the Legis-
lature on where the dollars will be spent. There is an ac-
countability report that is presented to the Governor's Of-
fice and the Legislature on this matter. He continued that
the Quarterly Analysis report now done within the System
compares the amounts allocated with the amounts spent and
excess transfers are picked up quarterly.
Mr. Klaich questioned the adequacy of the library formulas
for UNLV's proposed library. Dr. Anderes stated that they
should be revised mainly because of the proliferation of
technology, but there are other formulas, too, which should
be revised. The Board had requested a funding study; how-
ever, the Legislature did not appropriate funds for that.
The Chancellor has asked that the staff and the business
officers review these formulas and send recommendations to
the Council of Presidents. Mrs. Gallagher stated that the
Finance and Planning Committee is also discussing forming
a Statewide committee to review this matter. Dr. Derby
asked that the Board be included in the discussions. Dr.
Anderes stated that the formulas are only as good as the
information fed into them, and since the ones currently
being used are 10 years old, they should be reviewed. Also,
there are a number of areas not under the formulas that are
very vulnerable; i. e., Statewide Services, Continuing Edu-
cation, System Office, Computing Services, DRI, etc.
Dr. Anderes stated that 95% of the Operating Budget is State
appropriation and fees. Legislatures across the country
generally are most interested in funding those items related
to instruction and the administrative support of instruc-
tion. There are some budgets which are the responsibility
of the Board, such as Auxiliary Services, etc., which do not
go to the Governor or the Legisature for approval. These
are the Self-Supporting Budgets. This shows the relation-
ship between the State and what it will support vs. what
institutions will routinely do in terms of research, in
terms of public service, and in terms of obtaining external
dollars, but not directly related to that relationship with
the State. The Board annually approves the Self-Supporting
The System, as well as all other State agencies, must be
aware of the State resources when building budgets. There
are Statewide concerns with which the System can cooperate
with the Governor.
The System has 3 levels of budgeting: the base budget, the
maintenance budget and enhancements. The Board is also
responsible for identifying priorities for use by the in-
stitution in preparing their budgets, and should reflect a
blend of System and institutional objectives derived from
the short and long term plans of the institutions. The
formulas developed in 1986 do not reflect the growth in the
Community Colleges in this last decade, nor the growth in
graduate education at the Universities.
Dr. Anderes discussed trends within the institutions and
cautioned that these need to be analyzed by the institutions
when building their budgets. Some of the Operating Budget
changes in FY 96 from FY 90:
Reduction in State support as a percent of the Operating
Budget - 81% - 77%
Operating Budget has realized annual growth of 8.3%
General Fund has realized annual growth of 7.4%
Other funds have realized annual growth of 11.8%
Expenditures as a percent of Operating Budget:
Research has declined at all institutions
Student Services has declined at all institutions
except at UNLV
Institutional Support has remained relatively flat
or declined at institutions with enrollments
above 7000 FTE, and increased below 7000 FTE
Operation and Maintenance of facilities has in-
creased at all institutions except WNCC
Academic Support (including Library) has remained
flat or declined at all institutions except
GBC and TMCC
Instruction has declined at all institutions
Scholarships have increased at all institutions
Chancellor Jarvis reviewed key issues which must be address-
ed in budget preparation:
Access/Growth/Diversity - Dealing with growth of more
high school students coming into higher education.
Nevada could be looking at 198% increase in number of
high school graduates. Diversity must be a part of any
discussion on growth. Also a part of this package is a
balance between the sectors and the ease with which stu-
dents can move through the 2-year and 4-year institu-
tions, and the financial aid program.
Research and Graduate Education - While UCCSN retains a
commitment to undergraduate education, there is also a
major mission commitment to research and graduate edu-
cation, not only in enrollment in graduate programs, or
in sponsored research, but in the fundamental way this
System contributes to economic diversification within
Planning - As targets of opportunity come up, the System
must be able to respond within a planned framework.
Technology - The efficient delivery of education and the
cost of delivery must also be taken into account. Ad-
ministrative accountability generates an administrative
Higher Education Relationship with the State - Need to
look at how higher education will enhance the State;
must build a partnership to help meet these needs.
Tuition and Fees - What part of the fees should the
The Chairman and Chancellor commended Dr. Anderes and his
staff for the presentation on the budget development system.
The meeting recessed at 12:20 P.M. for lunch and reconvened at
2:17 P.M. with all Regents present.
5. Accepted Report of Audit Committee
Chairman Mark Alden reported that the Audit Committee met
on November 28, 1995 to review the UCCSN Consolidated FY
95 Financial Statements and Management Letter. However,
Deloitte & Touche were unable to attend and make their
presentation so no action was taken. The Committee did
discuss one management comment and agreed that without
further information they were unable to determine why it
had been included in the Letter. The Committee will meet
again December 12, 1995.
Mr. Alden moved to accept the report. Mrs. Gallagher
seconded. Motion carried.
6. Accepted Report of Campus Environment Committee
Chairman Jill Derby reported that the proposed Campus
Environment Committee met on November 13, 1995. The Board
is to ratify the establishment of the Committee at this
meeting, but had met with the understanding that ratifica-
tion would be complete. The November 13 meeting was a gen-
eral discussion on the structure and plan for the Committee.
The discussion centered around organizing the Committee into
3 sub-committees that would deal with the 3 primary issue
areas: Status of Women, which has already been functional
for 5 years, with Dan Klaich as Chairman; Diversity, with
David Phillips as Chairman; and Safety, with Shelley Berkley
as Chairman. It was agreed that 2 meetings per year would
be devoted to each of the 3 topics. The next meeting will
be December 14 and will be devoted to Safety.
Dr. Derby moved acceptance of the report. Mr. Klaich sec-
onded. Motion carried.
7. Accepted the Report of the Academic, Research & Student
A) Chairman Berkley reported on the meeting of the Aca-
demic, Research & Student Affairs Committee held
November 13, 1995. 3 information items were discussed:
1) System Tuition and Fee Committee
The Committee agreed that there were no additional
guidelines other than those already in place. The
concern was that the Tuition and Fee Committee will
keep in mind that tuition is a part of the budget,
the System needs to educate Legislators and the
general public to the needs of tuition increases
when they do occur, tuition increases should be pro-
posed in regular small increments as opposed to not
having increases for several years, but then having
a large increase, increases should be tied to pro-
grams and/or other needs of the institutions, and
increases impact student access.
2) The Gift of Land to UNR
The Committee heard a report on the gift of land
and generally felt it was a very exciting prospect
for the future, and the collaborative effort between
UNR, TMCC and WNCC would be a magnificent under-
3) The next meeting will be December 13, 1995 in Las
Ms. Berkley moved approval of the report. Mrs.
Gallagher seconded. Motion carried.
B) Accepted the Western Nevada State Peace Officer Academy,
WNCC. The Academy will provide State-mandated training
for cadets who are planning a career in law enforcement
or corrections. The 30-week program, to be offered at
least twice a year, will provide evening and weekend
classes which will be available to both the civilian and
law enforcement communities. The two existing programs
offered by the State and TMCC are daytime academies,
open only to law enforcement affiliates, and are cur-
rently operating at maximum capacity. Current faculty,
local officers and Police Officers Standard Training
Instructors will provide the training in the program.
Support for the Academy will be through the assessment
of enrollment fees of $2125 per cadet, and WNCC's part-
time instructional budget. It is anticipated that 25-30
cadets will enroll in each class. (Additional informa-
tion is on file in the Regents' Office.)
Mrs. Berkley moved approval of the Western Nevada State
Peace Officer Academy, WNCC. Mrs. Gallagher seconded.
C) Approved Criteria for Regents' Outstanding Student
Award. Following direction at the October, 1995 Board
meeting, the Chancellor had prepared alternative models
for the Regents' Outstanding Student Awards as a prize,
as a scholarship tied to continuing study in Nevada,
and a combination. (Ref. C is on file in the Regents'
Ms. Berkley moved for approval of Model 1 - no restric-
tions on the award. Mrs. Price seconded.
Mr. Graves stated that he was very pleased with the
amount of $5000 for the award rather than the $500
originally given. In answer to a question from Mr.
Klaich, it was explained that 8 awards are given an-
nually: 1 per Campus for undergraduates plus 1 for
graduate students at the Universities. He stated he
would be voting no because of his preference for Model
2 where the student would need to stay in Nevada to
further his/her education. Dr. Derby stated that the
Committee's decision for Model 1 was that there are no
restrictions for other comparable awards given by Re-
gents. Mr. Klaich argued that these awards went to
employees of the System who would be staying in the
State. Ms. Berkley stated that for someone to be an
outstanding student, that person would be pretty well
involved in the Campus and the education they are re-
ceiving, and if they choose not to stay in Nevada for
whatever reason, wondered what would happen. Mr. Graves
suggested that Model 3 would answer the question. That
model gives $2500 to the student who wants to go out of
State, but if they stay in State they receive $5000.
Mrs. Price argued for Model 1, stating that the student
would come back to the State because of the way they
Mr. Alden moved to approve Model 3: an unrestricted
prize of $2500, plus an additional scholarship/prize
supplement of $2500 contingent upon continuing study
or employment in Nevada the following year. Motion
died for lack of second.
Ms. Berkley moved to approve Model 2: $5000 scholar-
ship whose goals are both: a) to recognize excellence
in academic accomplishments, leadership ability, serv-
ice contributions and potential for continued success,
and b) to promote continued study and contribution to
the State of Nevada. Mr. Klaich seconded. Motion
8. Acceptance of Finance and Planning Committee Report
Mrs. Gallagher reported on the Finance and Planning Commit-
tee meeting held November 17, 1995.
A. Information items discussed:
1) The Committee reviewed the actuarial report on the
System's Self-Insured Compensation Program. It has
been determined that if the System's programs ended,
the liability of the System would be approximately
$3.6 million. There are reserves to offset some of
this liability. Historically, $400,000 per year
has been paid from this fund to assist the Radiation
Safety Program, which should be funded by the State.
Request was made at the 1995 Legislature for funding
to no avail. The System will again request funding
in the 1997-99 Biennial Budget Request. Further
study of the System SIIS Program is underway.
2) Discussion was held on materials for the workshop to
be given at the Regents' December 1, 1995 meeting.
3) Gift of Land to UNR. The Committee heard a report
on the gift of land to UNR. It was suggested that
a System representative be appointed to the Plan-
4) Tuition and Fee Policy: In addition to the policy
guidelines, it was suggested that consideration be
given to regular small increases rather than a large
increase every several years.
Mrs. Gallagher moved acceptance of the report of the
Finance and Planning Committee. Mr. Klaich seconded.
B. Approved System Administration FY 96 Self-Supporting
Budget - At the October 1995 meeting the Board approved
a revised budget structure for System Administration.
Vice Chancellor Anderes had presented the System Admin-
istration FY 96 Self-Supporting Budget, on file in the
Regents' Office as Ref. E.
Mrs. Gallagher moved approval of the FY 96 Self-Support-
ing Budget for System Administration. Mr. Alden sec-
onded. Motion carried.
C. Approved Resolution for Bank Loan, WNCC-Minden Site - At
the October, 1995 meeting the Board authorized President
Randolph to seek bids for a bank loan of up to $800,000
to begin construction on a building at the WNCC-Minden
WHEREAS, the University and Community College System of
Nevada (the "University") intends to borrow $800,000
from Zion National Bank (the "Bank") pursuant to a let-
ter from the Bank received November 29, 1995, in re-
sponse to a solicitation of bids therefor (the "Pro-
posal", attached hereto) for the purpose of financing
the improvements for Western Nevada Community College,
such borrowing to be evidenced by a note signed by the
appropriate officials at the University (the "Note").
President Randolph stated that the Legislature had pro-
vided WNCC with $1.5 million for a building to be con-
structed on a site donated to the College by Bentley
Nevada in an industrial park located in Douglas County.
The projected cost of the building is $2.3 million.
WNCC must raise the additional $800,000, which neces-
sitates a loan until pledges from the fund-raising ef-
fort are realized. Under tems of the gift of land,
construction must begin with a 2-year period, hence the
need for the loan. Vice President Bill Davies, WNCC,
presented the plans for the 15,000 sq. ft. building,
which will have 8 classrooms, faculty offices, comput-
ing laboratory, science laboratory, distance learning
and a small learning resource area. Furnishings and
equipment will come from a separate budget. Ground
breaking is scheduled for March, 1996.
There are about 800 students taking classes in the area
at present and enrollment is expected to go to 1000.
A coordinator will be assigned to manage the activites,
and classes will be conducted by part-time faculty.
Dr. Derby moved approval of a tax-exempt bank loan from
Zion National Bank for up to $800,000 at 5.1% interest.
Mrs. Gallagher seconded. Motion carried.
Dr. Derby stated there is a great deal of enthusiasm
for the project in Douglas County. Mr. Graves commended
the staff for their efforts on this endeavor.
D. Approved a Self-Supporting Budget for Intercollegiate
Athletics at UNLV. Since the time of the presentation
to the Finance and Planning Committee, a number of
questions have developed about the budget. President
Harter, Vice President Norval Pohl and Athletic Director
Charles Cavagnaro have been in office a very short
time, 5 and 4 months respectively. They have set goals
for the Athletic Department: 1) To integrate athletics
into total University life. 2) To provide a first-rate
educational experience for student athletes. 3) To
increase the graduation rate for student athletes. 4)
To maintain competitiveness at the Division I level by
having adequate funds for team travel and recruitment
competitively across the country, etc. 5) To fund the
maximum number of authorized NCAA scholarships for each
sport. 6) To develop a financially sound and respon-
sible athletic budget.
The President and Athletic Director were presented with
a 15% gap between projected revenue of $9.1 million and
projected expense of $10.6 million, which left a short-
fall of $1.5 million. This shortfall was not from one
year, but from an increasing gap between revenue and
expenses over a period of 4 to 5 years. The President
asked the Athletic Director to bring the budget into
line within 2 years.
President Harter explained the sources of revenue for
the Department. Mr. Cavagnaro made considerable reduc-
tions in the original budget, but there still remained
an $800,000 deficit. A decision was made to consider
a loan to the Department from other sources of the
University, to be paid back within 2 years with a 5.5%
interest charge. That still left a $300,000 problem.
$215,000 of that amount will be coming from an internal
loan from within the Department which also will be paid
back within 2 years. Plus, originally, it had been
proposed that $85,000 in gift income directly donated
to particular individual sports be used, again, as a
loan, to try to balance this budget. This particular
issue caused a great deal of concern. That idea was
then rescinded, and UNLV has substituted 3 other items
to make up the $85,000 deficit by reducing the budget
further: 1) Another 1/2% operating reduction, bring-
ing that to 10.5% across the board. 2) Freezing part-
time wages for part-time help during the year. 3) Us-
ing dollars from unused, unfilled scholarships.
President Harter explained that loans would be repaid
over this 2-year period from moving to the WAC Confer-
ence, which causes considerble increase in revenues.
A lengthy discussion followed. Vice President Pohl in-
dicated that there will be changes in the budeting proc-
ess for athletics which will provide the internal con-
trol needed and it will be in place by next year. The
Board was assured that donor funds would not be used in
making up the deficits.
Mr. Foley moved the acceptance of the loan of $500,000
and that the balance of the program be re-studied and
presented at the earliest possible date. Mr. Alden
Ms. Berkley questioned why the Board was trying to
micro-manage the solution to this problem. She sug-
gested that the Administration should continue its
review of the problem and find the additional revenue
needed. Mrs. Gallagher stated that she agreed the
Board should not be micro-managing this Department.
She agreed that all Regents had phone calls concerning
the use of donor money to solve this problem and they
should request assurance those funds would not be used.
President Crowley offered that the debate on the matter
is evidence of the need to support the recommendation
of the President. He continued that athletics is the
single most visible part of a University. There is a
national movement, in which both he and President Harter
have been deeply involved over the last 10 years, to
restore institutional control to athletic programs, and
the absolute focus of that control is the President.
The role of the Board is to ask proper questions, and
to provide guiding principles. This Board has assigned
to President Harter a tremendously difficult task to
balance a budget that has been out of balance, and to
take control of a program that needs to be controlled
by the institution and the President. 3 professionals
have been charged with bringing forth a proposal to the
Board, and have done so. There is great risk, symboli-
cally, beyond the particular issues discussed at this
meeting, in not supporting the proposal of the Presi-
dent. Mr. Graves thanked President Crowley for his
Motion failed on roll call vote:
Aye: Alden, Foley, Price
Nay: Berkley, Derby, Eardley, Gallagher, Klaich,
Mr. Klaich moved to approve the Athletic Department
budget together with the 2-year deficit reduction plan
as presented, with the following conditions: that no
donor funds be used in the reduction with the exception
of $6000 that Vice President Pohl identified this date,
that the impact of any of the reductions outlined this
date would be mitigated with the use of unanticipated
and unbudgeted revenues, and that a report be given to
the Board at the first meeting following the close of
the FY 95-96 year on the proposed budget plan and the
actual implementation of the budget plan for the Ath-
letic Department. Mrs. Gallagher seconded. Motion
carried. Mr. Alden voted no.
The Board recessed at 3:35 P.M. and reconvened at 3:45 P.M. with
all Regents present except Mr. Alden and Mr. Foley.
9. Approved the Report of the Investment Committee
The Investment Committee met on November 13, 1995 and Novem-
ber 30, 1995 to review policies and procedures for the en-
dowment funds. These changes will be presented for Board
action at its January, 1996 meeting.
A. Approved Investment of Certain Funds - The Committee
allocated the expenditure of $4 million of additional
investment funds: $1 million to Sanford Bernstein, $1
million to the Global Bond Fund and $2 million to
International Equity. These allocations are in ac-
cordance with the guidelines.
Mrs. Janet Mac Donald explained the investment guide-
lines have been focused on the Regents' control of the
investments in the establishment of spending authority
and the asset allocations. Mrs. Edna Brigham related
that the guidelines had not been reviewed or modified
since 1983 at the inception of the endowment. The
original guidelines were written in a generic manner
for all managers, but over time it has become apparent
that specific guidelines are needed for each manager.
Therefore, individual working papers have been pre-
pared for each manager. Also, policies were needed to
govern the investment of any large, additional sums
that come to the Regents between the quarterly meetings
of the Committee. This does not change the investment
policy, but outlines for the staff the priorities for
Mrs. Sparks pointed out that this is a very hard-working
Committee. This endowment has gone from $20 million in
1983 to over $135 million to date. The Committee has
been very conservative and very much aware of the re-
sponsibility of a public institution.
Mrs. Berkley moved for approval of the minutes of the Novem-
ber 13, 1995 meeting. Mr. Phillips seconded. Motion car-
10. Approved the Consent Agenda
Approved the Consent Agenda, identified as Ref. G, with the
authority to change the order of business as needed.
1. Approved the minutes of the regular meeting held October
2. Approved tenure on hire for the following:
a) Dr. Yaakov L. Varol in the Department of Computer
Sciences. Dr. Varol will assume duties as Chair-
man of the Department of Computer Science effective
January 1, 1996.
b) Dr. Ole J. Thienhaus, M. D. as Professor of Psychi-
atry in the School of Medicine. Dr. Thienhaus will
also serve as Chairman of the Department of Psychi-
atry and Behavior Science effective January 1, 1996.
3. Approved Advisory Board members at WNCC. 3 sub-groups
of up to 15 members each have been established for
Carson City, Churchill County and Douglas County. The
3 sub-groups will meet quarterly with the 4th meeting
a combined meeting of the 3 groups.
Tom Baker John Sheldon
Midge Breeden John Singlaub
Al Escalante Steve Smith
George Hawes Ted Stokes
Weldon J. Lary Walter Sullivan
Chuck Malone Mary Walker
Maxine Nietz Margie West
Bonnie Carter William Lawry
Sue Chambers John H. La Voy
Dan Corcoran Marion La Voy
Elmo De Ricco Roberta Linderamn
Ron Flores Jane Pieplow
Virgil M. Getto Ken Tedford, Jr.
Andy Aldax John Laxague
Hal Butler Penny Nicely
Barbara Byington Andy Rice
Bob Centanini Sherry Smokey
Pendery Clark Vicki Hafen-Scott
Monica Hilgarth Bruce Van Cleemput
Kathy Hone Evelyn White
4. Approved Handbook changes, Title 4, Chapter 14, Section
12, System Transfer Guide and Master Course File. Ref.
C-4 filed in the Regents' Office.
5. Approved a Handbook change, Title 4, Chapter 17, Section
8, Refund Policy to comply with Federal regulations.
Ref. C-5 filed in the Regents' Office.
6. Approved the following Interlocal Contracts:
A. UCCSN Board of Regents/UNR and the Nevada Division
of Child and Family Service Administration (Inter-
Effective Date: October 1, 1995 through September
Amount : $31,929 to UNR
Purpose : Services to victims of crime pur-
suant to the Victims of Crime Act.
B. Board of Regents/UNR and the Nevada Division of
Wildlife (Interlocal Contract)
Effective Date: February 1 to March 15, 1996
Amount : $7,650 maximum to UNR
Purpose : Lodging and meals to be provided by
University Inn for event scheduled
February 5-8, 1996.
C. Board of Regents/UNR and the Nevada Division of
Environmental Protection (Interlocal Contract)
Effective Date: December 13, 1995 through August 1,
Amount : $135,000 maximum to UNR
Purpose : Business Environmental Program/Air
Pollution Prevention Services.
D. Board of Regents/UNR and the Nevada Division of
Wildlife (Interlocal Contract)
Effective Date: July 1, 1995 through June 30, 1996
Amount : $16,000 maximum to UNR
Purpose : Mountain quail restoration in
E. Board of Regents/School of Medicine and the Nevada
Division of Mental Hygiene and Mental Retardation
Effective Date: July 1, 1995 through June 30, 1996
Amount : $2,925,533 maximum to Med School
Purpose : Psychiatry salaries.
F. Board of Regents/UNLV and the Clark County Depart-
ment of Family and Youth Services (Interlocal Con-
Effective Date: Date signed by last party to June
30, 1996, and may be extended for
a one year period upon renewal of
the program upon written agreement
of the parties.
Amount : $15,000 to UNLV
Purpose : Public Child Welfare Training
G. Board of Regents/CCSN and the Nevada Department of
Motor Vehicles (Interlocal Contract)
Effective Date: Date approved by Board through
June 30, 1996
Amount : $30,000 to CCSN
Purpose : Motorcycle Safety and Education
Dr. Eardley moved to approve the Consent Agenda and to
change the order of items as necessary throughout the meet-
ing. Mr. Phillips seconded.
Mr. Klaich asked for a correction to the minutes of October
29, 1995 meeting with respect to the Law School. He sup-
ports the continuation of the Law School Study, but has made
no commitment to the School pending results of the study.
Mrs. Price referred to item 18 of the minutes to reflect
that the Chairman had agreed to write a letter to the At-
torney General. Chairman Graves stated that he would ad-
dress that matter.
11. Approved the Appointment of the Vice President of CCSN
Approved the appointment of Mr. Gordon Howatt as Vice Pres-
ident for Finance and Administration, effective December 4,
1995. The Chancellor had approved a salary of $89,000 ef-
fective with the appointment.
Mrs. Gallagher moved to approve the appointment of Mr.
Gordon Howatt as Vice President for Finance and Adminis-
tration at CCSN, effective December 4, 1995. Mr. Phillips
seconded. Motion carried.
12. Accepted a Gift of Land, UNR
Accepted the gift of land from the Redfield Foundation to
UNR for the purpose of establishing a Campus of the Uni-
versity of Nevada, Reno, to be used jointly by the Western
Nevada Community College and Truckee Meadows Community
President Crowley reminded the Board that a few years ago
there had been a discussion about a gift of land from the
Redfield Foundation to TMCC, but when some legal matters
arose, the Regents took no formal action and the offer was
withdrawn. UNR became concerned with the growth of the
southern Reno area, and assigned Dr. Neal Ferguson to ex-
plore where UNR might have a presence in the area. Dis-
cussions were held with the Redfield Foundation and the
2 Community Colleges with the resultant gift of land
presented at this time. Dr. Crowley related that he was
tremendously excited about the prospects for this venture,
feeling this could be a most unusual model in developing
cooperative ventures for the 3 institutions.
Dr. Neal Ferguson related that this site is 60 acres of
prime commercial land which has been appraised at $9.2
million. The property is to be developed over the next
25 years. This will enhance the potential for higher edu-
cation by placing a facility in a high demographic growth
area. Planning so far is consistent with the Board's Stra-
tegic Directions by this collaborative effort of the 3 in-
stitutions. This Campus will be placed in an area with the
greatest potential for economic diversity as any site in
northern Nevada. The appraisal for the site identifies
20,000 houses in a design basis over the next 10 years
within a 2-mile radius of the proposed Campus.
Dr. Ferguson clarified that the Board is asked to approve
a contract with the Redfield Foundation which lays out gen-
eral guidelines. The Board will have ample opportunity to
provide detailed guidance as the 3 institutions embark on
a joint planning process. A suggestion had been made that
a member of the Chancellor's Office be added to the Advisory
Committee, but that could not be incorporated into the con-
tract presented here. However, the Redfield Foundation has
sent a letter acquiescing to the addition of a member to
the Advisory Committee, which would now include 7 members.
If the contract is approved, planning will continue to en-
able breaking ground by December 31, 2000. This is the
first check point. If ground is not broken, the site may
revert to the Redfield Foundation. The Campus must be fully
built out in 25 years as projected, in the neighborhood of
500,000 sq. ft. If this does not occur, the Redfield Foun-
dation could take back the property in proportion to that
which has not been built.
The next check point for the Regents is in the Biennial
Budget process and the academic master planning for each of
Dr. Eardley moved to approve the contract for the gift of
land from the Redfield Foundation to UNR for the purpose of
establishing a Campus of the University of Nevada, Reno,
to be used jointly with Western Nevada Community College
and Truckee Meadows Community College. Mr. Phillips
Dr. Derby stated she was very enthusiastic about the col-
laborative aspect and suggested that a memorandum of under-
standing with all parties be drawn. Mr. Graves stated this
was a tremendous gift from the Redfield Foundation and a
tremendous opportunity for the Campuses. Mr. Klaich en-
couraged the same collaborative effort in Clark County, and
suggested that CCSN and UNLV be included in some of these
deliberations. Mr. Graves stated that discussions are al-
ready underway in southern Nevada for a similar arrangement.
In answer to a question from Mrs. Sparks concerning State
funding, Dr. Ferguson stated that this project must come
through the regular budget requests from the System to the
State. President Crowley related that UNR has a property
acquisition account which could be used to begin water,
electrical needs, etc. Mrs. Price stated this was a good
gift, but that there was not a long-term view for support.
She asked for Campus site definitions guidelines for new
Campuses. She continued that the donor should not drive
what is done here, that it should be the Board driving the
President Crowley observed that this is a long-range view,
inasmuch as the western Governors have identified a great
increase in high school graduates -- 198% for Nevada. UNR
is land-locked and space for growth is very limited. This
property helps to solve that problem.
Motion carried. Mrs. Price voted no.
13. Accepted the Report on the Legal Relationship between UCCSN
Campus Foundations and the Board of Regents
Mr. Graves related that at the October 1995 meeting he had
agreed, under duress, to write to the Attorney General re-
questing an opinion on the constitutional authority of foun-
dations in regard to the Board of Regents. In follow-up,
Mr. Graves had requested of the Chancellor that General
Counsel prepare a position paper on this matter. General
Counsel prepared such a paper, contained in Ref. I filed
with the permanent minutes. Mr. Graves explained that after
reviewing this positional paper, he did not feel he should
make such request of the Attorney General in that this paper
is very explicit. Further, he wanted the Board to take ac-
tion on this matter.
Mrs. Gallagher moved to accept Counsel Donald Klasic's
position paper on the constitutional authority of the Re-
gents with the Foundations, with the understanding that
the Board adopts this as its legal standing of the Board on
Foundations within the UCCSN, and that this account would
put the matter to rest. Mr. Phillips seconded.
Mrs. Price stated that this opinion is not different, except
in some editorial comments, from the opinion the Board had
prior to her coming onto the Board. She continued that she
had contacted the Attorney General, and the matter has been
investigated. There is a State law that as a single Regent
she was unable to make a request for an opinion, but such
request must come from either the Chairman of the Board or
the Board. Mrs. Price stated that when legal counsel is
available a Board can rely on that counsel, but it also has
the responsibility for making a judgment on its own. She
stated she has long had a difference of opinion, and has
in many forums, and under horrible circumstances, tried to
make her case. She continued that she feels she represents
a population of this State, that it is her duty to do this,
and that since the investigation has been done, although
she does not know the outcome but guessed that with the way
the State law is written and the upholding by the Ethics
Commission decision, it may very well not come out this
same way. However, she stated she felt she has an obliga-
tion to do what she can to call for this opinion.
Motion carried. Mrs. Price voted no.
Mrs. Price again requested the Chairman to write the letter
to the Attorney General. Mr. Klaich, speaking to Mrs.
Price's last statement, stated he respected Mrs. Price's
opinion on this, but that he felt she was not reporting
the opinions of the other members of the Board. He agreed
that she had brought this matter up in a number of ways with
a number of votes and that she had failed to persuade. Con-
tinuing, Mr. Klaich stated that there comes a time when put-
ting something to rest would allow Mrs. Price to draw a con-
clusion about the correctness of her opinion by her failure
to persuade, and that he personally was unable to see any-
thing that was duty-bound or positive about the campaign
she continues upon when she continues to fail to persuade.
Mrs. Price stated this was not a political issue, but rather
a legal issue, and feels she has an obligation to continue
her efforts. In a clarification to Dr. Derby, Mrs. Price
stated she was referring to the Ethic Commission's decision
on the Massamino contract, which upholds the State law, and
basically Mr. Klasic's opinion. Mrs. Price continued that
her challenge to the Constitution would override State law,
if it were correct, but based on the things that have hap-
pened within the State, it is not likely. The investigation
she was referring to was her request to the Attorney General
to look at this question, with a copy of the request and
backup material being sent to each of the Regents. The
Attorney General's Office did the investigation; however,
could not reply to Mrs. Price because of the State law which
said that a single person could not make such a request.
14. Board of Regents Handbook
Chancellor Jarvis referred to the Regents Handbook, about
which Mrs. Price has stated it is probably one of the most
user unfriendly documents ever invented. He presented the
first phase of a project to put the Handbook on disc and
soon to be on the Internet. He acknowledged Sharon Brush
and Tamela Gordon from the Chancellor's Office and Steve
Foster from Computing Services who made this project pos-
sible. By January, it is hoped the project will be on the
15. Approved Board of Regents Bylaws, Standing Committees
At the September 1995 meeting the Board approved Standing
Committees for FY 1995-96. Chairman Graves requested
changes in certain names and charges for some of the com-
mittees. The first reading of the changes occurred at the
October 1995 meeting, with action to be taken at the Decem-
ber meeting. (Ref. J filed in the Regents' Office.)
Mrs. Gallagher moved to accept the changes to the Board of
Regents Bylaws with regard to Standing Committees. Dr.
Derby seconded. Motion carried.
16. Postponed Report on Fall Enrollment Report
Because of a lack of time at this meeting, it was agreed to
postpone the report to the next meeting.
Mrs. Berkley moved to postpone. Mr. Phillips seconded.
17. Public Comment
Mrs. Gallagher, who recently had knee surgery, stated she
was able to observe outcomes of the System during her con-
finement. The two surgeons are graduates of the University
of Nevada Medical School, a number of the nurses in attend-
ance were from UNR and TMCC and were "absolutely excellent".
A short time ago, the Board had long discussions on physical
therapy and the orthopedic clinic on the UNR Campus, which
has turned out to be a "shining star". She related there
is a great deal of pride in some of the things the Board
18. New Business
The meeting adjourned at 4:35 P.M.
Mary Lou Moser