12/01/1995

UCCSN Board of Regents' Meeting Minutes
December 1-2, 1995








12-01-1995

Pages 115-138



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

Secretary.



1. Introductions



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

the fee.



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

the area.



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

Directions?



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

occurs.



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

Legislature.



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

Budgets.



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

the State.



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

computing need.



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

student pay?



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

Affairs Committee



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-

taking.



3) The next meeting will be December 13, 1995 in Las

Vegas.



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.

Motion carried.



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'

Office.)



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

were treated.



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

carried.



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-

ning Committee.



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.

Motion carried.



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

site.



RESOLUTION #95-11



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

seconded.



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

comments.



Motion failed on roll call vote:



Aye: Alden, Foley, Price

Nay: Berkley, Derby, Eardley, Gallagher, Klaich,

Phillips, Sparks



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

investments.



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-

ried.



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

20, 1995.



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.



Carson City:



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

Robert Scott



Churchill County:



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.

Richard Lattin



Douglas County:



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

Judy Keele



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-

local Contract)



Effective Date: October 1, 1995 through September

30, 1996

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,

1996

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

Nevada.



E. Board of Regents/School of Medicine and the Nevada

Division of Mental Hygiene and Mental Retardation

(Interlocal Contract)



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-

tract)



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

Program.



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

classes.



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.



Motion carried.



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

College.



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

the institutions.



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

seconded.



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

plan.



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

Internet.



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.

Motion carried.



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

has accomplished.



18. New Business



None



The meeting adjourned at 4:35 P.M.



Mary Lou Moser

Secretary

12-01-1995