12/04/1987

UCCSN Board of Regents' Meeting Minutes
December 4-5, 1987








12-04-1987

Pages 49-69



BOARD OF REGENTS

UNIVERSITY OF NEVADA SYSTEM

December 4, 1987



The Board of Regents met on the above date in the Hall of Fame

Room, Lawlor Events Center, University of Nevada-Reno.



Members present: Mrs. Dorothy S. Gallagher, Vice Chairman

Mr. James Eardley

Mr. Chris Karamanos

Mrs. Joan Kenney

Mr. Daniel J. Klaich



Members absent: Mrs. June F. Whitley

Mr. Joseph M. Foley

Mrs. Jo Ann Sheerin

Mrs. Carolyn M. Sparks



Others present: Chancellor Mark H. Dawson

President William Berg, NNCC

President Anthony Calabro, WNCC

President Joseph Crowley, UNR

President John Gwaltney, TMCC

President Robert Maxson, UNLV

President Paul Meacham, CCCC

President James Taranik, DRI

Mr. Donald Klasic, General Counsel

Dr. Warren Fox, Vice Chancellor

Mr. Ron Sparks, Vice Chancellor

Ms. Mary Lou Moser, Secretary



Also present were Faculty Senate Chairs Patricia Crookham (NNCC),

Frank Hartigan (UNR), Beverly Funk (CCCC), Bill Marchant (UNLV),

Dale Pugsley (WNCC), Steve Wheatcraft (DRI), David Wilkins (TMCC)

and Jim Williams (Unit), and Student Association Officers.



The meeting was called to order by Vice Chairman Gallagher at

9:45 A.M. on Friday, December 4, 1987.



1. Approved the Consent Agenda



Approved the Consent Agenda (identified as Ref. A, and filed

with the permanent minutes) containing the following items:



(1) Approved the minutes of the regular meeting held Octo-

ber 15-16, 1987.



(2) Approved the gifts, grants and contracts listed in

Ref. C-1, filed with the permanent minutes.



(3) Approved the addition of the following persons to the

UNLV Engineering Advisory Council:



Du Ray E. Stromback, Henderson

Thomas F. War, Las Vegas



(4) Financial Aid reports were submitted for the following

institutions and are filed in the Regents Office:



UNR , Ref. C-4a

UNLV, Ref. C-4b

CCCC, Ref. C-4c

NNCC, Ref. C-4d

TMCC, Ref. C-4e

WNCC, Ref. C-4f



(5) Approved the following interlocal agreements:



A. UNS Board of Regents and Department of Taxation



Effective: January 1, 1988 to June 30, 1989

Amount : Not to exceed $53,000

Purpose : Methodology for annual estimates of

Nevada's population.



B. UNS Board of Regents/UNLV and Nevada Department of

Wildlife



Effective: December 1, 1987 to September 2, 1988

Amount : Not to exceed $40,002

Purpose : Funding for Lake Mead crayfish study.



C. UNS Board of Regents/University of Nevada School of

Medicine and the Division of Mental Hygiene and

Mental Retardation



Effective: July 1, 1987 to June 30, 1988

Amount : Annualized maximum amount of $388,152

Purpose : Psychiatric care, treatment and train-

ing.



D. UNS Board of Regents/CCCC/Henderson Campus and the

State Occupational Information Coordinating Com-

mittee



Effective: July 1, 1988 to June 30, 1989

Amount : $1,995

Purpose : Nevada Career Information System.



E. UNS Board of Regents/WNCC and the State Occupa-

tional Information Coordinating Committee



Effective: July 1, 1988 to June 30, 1989

Amount : $1,200

Purpose : Nevada Career Information System.



F. UNS Board of Regents/NNCC and the State Occupa-

tional Information Coordinating Committee



Effective: July 1, 1988 to June 30, 1989

Amount : $600

Purpose : Nevada Career Information System.



G. UNS Board of Regents/UNLV and the Department of

Education



Effective: December 4, 1987

Amount : Not to exceed $1,750

Purpose : To provide tuition waivers for a maxi-

mum of 35 teachers enrolled in CIE/ESE

500: Special Problems in Education.



(6) In October, 1987 the Board authorized Presidents to ap-

prove use of Capital Improvement Fee Funds with the

proviso that they be reported at the next Regents meet-

ing. Those transfers are listed below:



A. NNCC - $3,000 to install outdoor lighting for Stu-

dent Services parking area and for the area sur-

rounding the two trailers.



B. UNR - $17,000 to an account under the control of

the Vice President of University Advancement to be

used solely for costs associated with fund raising

for the engineering and laboratory center as man-

dated by Assembly Bill No. 64 from the 1987 Session

of the Legislature.



Mr. Klaich moved adoption of the Consent Agenda and approval

of the prepared agenda with the authority to change the

order of items as specified throughout the meeting. Mrs.

Kenney seconded. Motion carried.



2. Report on Status of UNS Permanent Endowed Fund



Mr. Lincoln, Cambridge Associates, reported on the status of

the UNS Permanent Endowed Fund.



The investment performance for the first 3 fiscal years was

"extraordinary by any standard" with an approximate rate of

28% return per year. It exceeded the index portfolio made

up of equally weighted market averages, and it exceeded al-

most all averages of other endowment funds for this period.

The fund began with $20.5 million; it received approximately

$7 million in gifts; it distributed $4.8 million to educa-

tional programs; and it was worth approximately $40.1 mil-

lion at the end of October after having lost $5.8 million

in the recent stock market downturn.



Mr. Lincoln stated that the endowment was strengthened when

it diversified its approach to investing by placing more in

real estate and less in the stock market prior to "Black

Monday". The fund is owned on a shares basis by all UNS

institutions and most of the interest returned each year

funds scholarships. A 5% spending rate applies to all in-

stitutions. Mr. Lincoln encouraged the Board to consider

reducing that to a 4.5% spending rate to ensure the fund

continues to grow "at least as fast as the rate of infla-

tion" and to provide a steady stream of revenue to support

the same programs 100 years from now that it does today.

That is the long-term objective of an endowment.



Mr. Lincoln stated that because of the volatility of the

market, he wanted to review for the Regents the historical

returns of investments. The historical review which in-

cluded annual returns for stocks minus inflation, bonds

minus inflation, and money market instruments minus in-

flation, indicated that over the long span of history only

investments in stock have been able to provide an investment

return equal to inflation plus 4% to 5%.



Mr. Lincoln concluded that both he and the Investment Ad-

visory Staff feel that for the endowment, the long-term

requires that:



1. We allocate from 50% to 80% (or an average of 70%) of

our total assets to stocks.



2. We allocate from 20% to 50% (or an average of 30%) of

our total assets to long-term bonds to give us protec-

tion against periods of deflation or possible depres-

sion.



3. We diversify as much as possible with equity real estate

and other products to hedge against all possible risks

while still maintaining an exposure to equity markets

with the potential for long-term growth.



3. Introductions



President Berg introduced newly elected ASB President Ken

Chambers.



4. Chancellor's Report



Chancellor Dawson requested that Mrs. Edna Brigham, Assist-

ant to the Chancellor, give a status report on the construc-

tion of the System Administration building located at Evans

Avenue and Enterprise Road. She stated that the completion

date is expected to be in April, 1988.



Chancellor Dawson introduced the newly elected System Com-

pensation Committee Chairman Kim Boal, UNR Managerial Sci-

ences Associate Professor, who outlined issues under dis-

cussion by that Systemwide Committee, which serves as an

advisory body to the Chancellor.



Compensation-related issues include: improved benefits/

retirement planning and a Committee recommendation that two

benefits counselors be hired to assist faculty; average

salary levels and increases; the negative effect tax reform

will have on business-related deductions; insurance costs;

and, distribution of merit monies.



Dr. Boal stated the Committee supports studies comparing

faculty salaries to 50 land-grant institutions and taking

into account cost of living and tax rates. The Committee

also endorses conducting an attitudinal survey of UNS pro-

fessional employees concerning salary and benefits.



One major ongoing issue involves salary increases. They

represent a visible benchmark to all as to the worth and

value in which UNS holds people. Research in industry shows

that people who do an adequate job feel they should get a

pay increase at least equal to the cost of inflation. Be-

cause that maintains the status quo, there are no real in-

come gains. To give someone a raise lower than that takes

away from their standard of living.



A second major issue is merit. The Committee recognizes

that the goals and missions of UNS institutions are signifi-

cantly different, so the Committee has gone on record rec-

ommending that issues of merit be left to the individual

units. The Committee endorses a proposal to allow Community

Colleges to develop criteria for merit increases separate

from Universities, because different job performance crite-

ria exists at Universities (such as research expectations)

than at Community Colleges. Dr. Boal stated that those

differences should be recognized in the evaluation process

for merit pay.



The Compensation Committee also is reviewing the impact of

new federal tax laws on a faculty member's ability to deduct

expenses related to professional activities. Dr. Boal stat-

ed that because new tax laws significantly reduce deductions

for travel, presenting papers, and attending professional

meetings, "the cost of being a professor has actually gone

up". One issue the Committee will address is how can UNS

best maintain the ability of the professor to remain active

in the discipline without forcing him to take these expenses

"out of his own hide". Given the average salary levels, it

will be difficult.



Chancellor Dawson reported on the UNS lobbying efforts to

remove a provision in the House version of the federal

Budget Reconciliation Act that would eliminate the Estate

Tax Fund. A handful of States, including Nevada, which have

the "pickup" provision only, would lose the federal credit

under a provision that instead makes the money a deduction.

Chancellor Dawson stated that UNS has been actively lobby-

ing the Governor and congressional representatives and are

receiving assurances, particularly through Senator Harry

Reid's office, that this has been brought to the attention

of the Ways and Means Committee Chairman and that efforts

are being made to delete this provision. The Chancellor's

Office is monitoring the situation closely and will notify

the Board immediately if there are any adverse developments.



5. Approved Resolution on Public Sale of Bonds, DRI



Approved a resolution (#87-10) for the public sale of bonds,

in a total principal amount not to exceed $5 million, for

facilities at DRI. In April, 1987 UNS sought legislation

and received permission to seek bonding in the above amount.



Mrs. Kenney moved approval of the resolution for the public

sale of bonds for facilities at DRI. Mr. Klaich seconded.

Motion carried.



6. Report from ASUN



ASUN President Carl Gatson reported on a recent self-study

of student government. Among the recommendations which will

result in change will be the addition of Senate seats to

represent graduate students and outside constituencies, and

development of programs to better showcase UNR's resources.



Mr. Klaich requested a copy of the self-study for all Board

members.



7. Preliminary Discussion of 1989-91 Biennial Budget



Vice Chancellor Sparks provided Regents with a preliminary

overview of parameters and priorities for building the next

biennial budget request, adding that Regents will receive a

progress report in January and final recommendations for

consideration in March. Among the budget issues to be

addressed (not prioritized) are:



Continued improvement of the ratio of full-time to part-

time faculty at Community Colleges. The ratio for FY

89 will be 57% full-time to 43% part-time. The UNS

goal, and the national average, is 70% full-time/30%

part-time.



Continued enhancement of a formula that determines the

number of graduate assistants hired.



Strengthening of the formula that funds support serv-

ices.



Full funding of the 2.5% merit pool established in 1985.



Matching funds for EPSCoR, a National Science Foundation

federal grant to continue providing for top research

projects at UNR, UNLV and DRI.



Vice Chancellor Sparks stated that the Chancellor's Office

will recommission two compensation studies designed to

determine how University faculty and Community College

faculty fare in national comparisons.



Those studies will be initiated as soon as national data

becomes available, and will serve as the basis for deter-

mining what the 1989-91 salary request should be. That

information will be forwarded to the Board of Regents for

its consideration in the Spring. Among other possible

budget requests for inclusion in the "enchancement" portion

of the budget request are computing equipment, a satellite

uplink for telestudies, new academic programs, equipment,

scholarships and staff development.



8. Report on Systemwide Enrollments, Fall, 1987



Vice Chancellor Fox submitted the Fall, 1987 Enrollment

Report, as contained in Ref. B, filed in the Regents Office.

Dr. Fox and Mrs. Karen Steinberg presented a System overview

and summary of the enrollment figures.



They reported that the official figures show 53,187 students

enrolled in UNS institutions this Fall, a 6.4% increase over

Fall, 1986. In contrast, enrollment is projected to decline

by 1% nationally during that same period. Nationally stu-

dent enrollment grew 1% from 1980 to 1985, while UNS grew

by 28.9% between 1981 and 1987.



Of the total student population, 28,785 attend Community

Colleges and 24,402 attend Nevada Universities. Most (71%)

are part-time students. The average age is 27 years old,

with full-time students being 25 years old, on the average,

and part-time students are an average age of 30. Some 57%

enrolled this Fall are female, up from 53% in 1981.



UNS projects a student population of more than 70,000 stu-

dents by the year 2000.



The stereotypical College student today is typically an

older, part-time, female student rather than the traditional

18-year-old high school graduate. This shift in the compo-

sition of an "average student" is being experienced not only

in the University of Nevada System, but nationwide.



Running counter to State trends seen earlier, in 1987 UNS

enrolled more full-time students. Viewed in terms of "full-

time equivalent" students, rather than actual numbers of

students being served, enrollments by institution for Fall

of 1987 are:



University of Nevada-Reno 7,497

University of Nevada, Las Vegas 8,593

Clark County Community College 4,179

Northern Nevada Community College 474

Truckee Meadows Community College 2,627

Western Nevada Community College 1,162



The actual numbers of student enrolled by institution are:



University of Nevada-Reno 10,624

University of Nevada, Las Vegas 13,778

Clark County Community College 14,211

Northern Nevada Community College 2,079

Truckee Meadows Community College 8,483

Western Nevada Community College 4,012



Presidents indicated that those numbers don't tell the full

story of numbers of people being served by UNS, because they

do not include the thousands of Nevadans each year who en-

roll in continuing education programs.



Vice Chancellor Ron Sparks cautioned that UNS was budgeted

for a 3.6% enrollment increase in Fall, 1987 and that the

actual 7.7% increase means that UNS is already developing

a large gap which the 1989 Legislature will have to address.

This will cost $3 million per year alone in new State dol-

lars. The System needs to be sensitive to this when devel-

oping the 1989-91 budget request.



Mr. Klaich requested that the UNS Enrollment Report for Fall

1987 be distributed to Legislators and other key people to

make them aware of the ramifications of enrollment growth.



9. Report on Local Area Network (LAN) Designs



In June, 1985 the Board approved an allocation from the Re-

gents Special Projects Fund in the amount of $60,000 to fund

the design of a Local Area Network (LAN) System for UNS

institutions. Sytek Corporatin, the successful respondent

to the RFP, has completed the design work and the results

were reported by Mr. Dick Belaustegui, Director of System

Telecommunications Network. See Ref. C, filed in the Re-

gents Office.



10. Approved Change, UNS Code



Approved changes to the UNS Code, Sections 1.1, 1.4.4, 1.6.1

and 1.6.3 as contained in Ref. D, filed in the Regents Of-

fice. These changes reflect:



A. A change of name from UNS Computing Center to UNS Com-

puting Services, and



B. Requiring Board approval for appointments of Directors

of the Computing Center Services, Administrators report-

ing directly to the Chancellor, Vice Presidents of Sys-

tem institutions, and Dean or Administrators in posi-

tions equivalent to Deans in Community Colleges.



These changes were approved by the Board at the October 1987

meeting; however, Code changes require a 30-day notification

to all institutions prior to adoption. Comments from insti-

tutions are included with the reference.



General Counsel Klasic posed the following amendment to

Ref. D, Section 1.6.1(b):



3. 1.6.1 Appointment of Administrators



(b) The appointment of the Directors of the Uni-

versity of Nevada System Computing Services

and the University of Nevada Press, Adminis-

trators reporting directly to the Chancellor,

Vice Presidents of System institutions, and

Community College Deans or Administrators in

positions equivalent to Deans in the Community

Colleges of the System shall be subject to the

approval of the Board of Regents, and such ap-

pointments shall not take effect, and no em-

ployment contracts for such positions shall is-

sue or be binding, until Board approval is re-

ceived. The appointment of all other Deans

and heads of laboratories, centers, bureaus

or similar administrative units by the Presi-

dents shall be reported to the Board at its

next regularly scheduled meeting after such

appointment.



Mr. Karamanos moved approval of the changes to the UNS code

as amended. Mr. Eardley seconded. Motion carried.



11. Report on Fallon Campus Facilities Project, WNCC



President Calabro introduced Mr. Bill Davies, Dean of Col-

lege Services, who reported on building project in Fallon

authorized by the 1987 Session of the Nevada State Legisla-

ture. The new building is 7,600 square feet located on 10

acres and will house classrooms and faculty offices. The

land would be leased for 50 years with a renewable 50-year

lease at a rate of $1 per year, and a loan of approximately

$55,000 to construct the building.



Chancellor Dawson requested that as the documents are final-

ized, the Board of Regents hold a special teleconference

meeting to consider the documents.



Mr. Karamanos questioned whether it was feasible for the

Board of Regents to provide the financing and collect in-

terest on the loan. The Investment Committee was directed

to look at this option of financing.



12. Approved Schedule Change in Officer Evaluations



Approved temporary suspension of Board policy contained in

the Handbook, Title 4, Chapter 2.3, Officer Evaluations,

until such time that the policy is rewritten. The current

policy calls for Officer evaluations to be completed in

January each year. The Chancellor has submitted to the

Regents and Presidents a suggested plan for a more meaning-

ful evaluation process. It is anticipated the final draft

of the plan, including a timetable for evaluations, will be

available for consideration at the January, 1988 Board meet-

ing.



Mr. Karamanos moved approval to temporarily suspend Board

policy contained in the Handbook regarding Officer Evalua-

tions. Mr. Klaich seconded. Motion carried.



13. Approved Easement, UNS



Approved an easement for underground electric distribution

at the site of the System Administration building located

at the corner of Enterprise Road and Evans Avenue in Reno.



Mr. Klaich moved approval of an easement for the System

Administration building. Mr. Eardley seconded. Motion

carried.



14. Approved Sabbatical Leaves, 1988-89



Nevada Revised Statutes and Board of Regents policy provide

for the total number of sabbatical leaves which may be a-

warded each year. See Ref. E, filed in the Regents Office.



Utilizing the criteria followed in previous years, the maxi-

mum available leaves for 1988-89 are: UNLV - 10; UNR - 12;

CCCC - 4; NNCC - 1; TMCC - 2; WNCC - 1; DRI - 2; Unit - 1.



A. University of Nevada, Las Vegas - President Maxson rec-

ommended the sabbatical leaves available to UNLV be

awarded to the following:



Vicky Carwein, Nursing, Fall 1988

William Corney, Management, Spring 1989

Edward Kelly, Special Education, Spring 1989

Esther Langston, Social Work, Spring 1989

Lorne Seidman, Finance, Spring 1989

Eugene Smith, Geoscience, Academic Year 1988-89

John Stafanelli, Hotel Administration, Fall 1988

A. Wilber Stevens, English, Spring 1989

Anne Wyman, Geoscience, Spring 1989

Evangelos Yfantis, Computer Science & Electrical

Engineering, Academic Year 1988-89



Alternates



Richard Hoyt, Finance, Spring 1989

Bill Leaf, Art Department, Academic Year 1988-89



See Ref. F for summary of proposed projects, filed in

the Regents Office.



B. University of Nevada-Reno - President Crowley recommend-

ed the sabbatical leaves available to UNR be awarded to

the following:



Deborah Achtenberg, Philosophy, Academic Year 1988-89

Eva L. Essa, Home Economics, Academic Year 1988-89

James R. Firby, Geological Sciences, Fall 1988

Barbara A. Gunn, Home Economics, Spring 1989

Elisabeth Hansot, Political Science, Academic Year

1988-89

Husain Haddawy, English, Spring 1989

Cecile Lindsay, Foreign Languages & Literatures, Spring

1989

Stephen A. Moscove, Accounting & Computer Information

Systems, Fall 1988

Ann Ronald, English, Academic Year 1988-89

Howard Rosenberg, Art, Fall 1988

Richard W. Rust, Biology, Academic Year 1988-89

Tracy L. Veach, Psychiatry & Behavior Science, Academic

Year 1988-89



Alternates



Deborah Davis, Psychology, Fall 1988

Perry Jones, Music, Spring 1989

James K. Mikawa, Psychology, Academic Year 1988-89



See Ref. G for summary of proposed projects, filed in

the Regents Office.



C. Clark County Community College - President Meacham rec-

ommended the sabbatical leaves available to CCCC be

awarded to the following:



Robert Dunkerly, Liberal Arts, One Semester

Dale Etheridge, Science & Health, Academic Year 1988-89,

50% Release

Arnold Friedman, Industrial Technology, Academic Year

1988-89

Candace Kant, Liberal Arts, Academic Year 1988-89



Alternate



James Santor, Industrial Technology, Academic Year

1988-89



See Ref. H for summary of proposed projects, filed in

the Regents Office.



D. Western Nevada Community College - President Calabro

recommended the sabbatical leave available to WNCC be

awarded to the following:



Jim Pawluk, Educational Services, Academic Year 1988-89



See Ref. I for summary of proposed project, filed in the

Regents Office.



Mr. Karamanos moved approval of the sabbatical leaves for

UNLV, UNR, CCCC and WNCC. Mr. Klaich seconded. Motion

carried.



15. Report and Recommendations of the Academic Affairs Committee



A report and recommendations of the Academic Affairs Commit-

tee meeting, held December 3, 1987, were made by Regent

Daniel Klaich.



(1) Approved NNCC's participation in the Western Under-

graduate Exchange Program, to begin Fall, 1988. This

program allows students from participating WICHE states

to be eligible to enroll in programs throughout the

institution at a reduced tuition rate.



This WICHE program will enable students in participat-

ing states to enroll in entire institutions or specific

programs designated by other western states at 150% of

resident tuition. Tuition benefits will be available

only to residents of states which also offer programs

to WUE students, and only at the levels (baccalaureate

and associate) that are open to WUE students in such

other states. Nevada residents wishing to enroll in

participating institutions in other states would be

restricted to 2-year institutions.



It was explained that the only cost to the University

of Nevada System is the difference in amount of out-of-

state tuition and 150% of tuition.



Mrs. Sheerin wanted it clarified that this is not a

blanket approval for the other institutions to partici-

pate, and Vice Chancellor Fox reaffirmed by stating

that each Campus would bring proposals which would

satisfy their particular needs.



(2) Information Only - President Crowley reported on the

development of the Center for Logistic's Management,

a new program being considered at UNR which relates to

warehousing. This program will be submitted for proper

program review procedures; however, President Crowley

wished to inform the Committee that this program will

require considerable private funding and that UNR is

in the process of raising funds at this time.



Mrs. Sheerin requested a report on the Regents Scholars Pro-

gram at the next Board of Regents meeting.



Mr. Eardley moved approval of the report and recommendations

of the Academic Affairs Committee. Mrs. Kenney seconded.

Motion carried.



16. Report and Recommendations of the Budget and Finance

Committee



A report and recommendations of the Budget and Finance Com-

mittee meeting, held December 3, 1987, were made by Regent

James Eardley, Chairman.



(1) Approved to use Capital Improvement Fee Funds for the

following projects at NNCC:



A. Remodeling kitchen in child care

center area $ 3,685



B. Buy-out of contract with Gardner Engi-

neering's Professional Services Shared

Savings Agreement 27,000



If NNCC pays off the existing contract, it is released

from the contractual requirement that Gardner Engi-

neering must maintain the equipment. Considerable

savings would be available by using local Elko firms

for maintenance.



See item 1.(6) of these minutes for additiona expendi-

tures from the Capital Improvement Fee Funds at NNCC

and UNR as they were reported to the Consent Agenda.



(2) Approved to use Capital Improvement Fee Funds for the

following projects at UNLV:



A. Remodeling and furnishings in the

Carlson Education building for the

Family Wellness Center $60,000



B. Improvements to two lots located on Campus

for temporary parking 34,000



(3) Approved the changes to the requirements for tax-shel-

tered annuity programs as outlined in Ref. B-3, filed

in the Regents Office. These programs are offered on

a voluntary basis to System employees.



The main change to the program will not require that

prior to allowing a payroll deduction for users, a

company will be required to have a minimum of 20 em-

ployees participating. Any employees currently en-

rolled in companies with less than 20 users will be

allowed to continue with payroll deductions.



(4) Approved the use of Special Projects Funds for the

following activities which were discussed with the

Board at the recent workshop:



A. Senior Research Analyst, Academic Affairs, up to

$35,000 annually



As the UNS continues to grow and become more com-

plex, there is an increasing need for Systemwide

information. The staff in Academic Affairs, in

addition to other duties, currently provides the

following on-going studies: the System legisla-

tive planning report, the System course transfer

guide, the Nevada high school seniors' survey,

Fall and Spring enrollment reports, federal IPEDS

surveys, legislative space utilization report,

System affirmative action report, and requested

special surveys and reports such as health care

education, telestudies, academic computing, or

salary surveys. In addition, staff support is

provided for the review of new programs, articula-

tion studies and Systemwide committees such as the

Academic Affairs Council, Academic Computing, tui-

tion reciprocity and others.



The need for enhanced or additional on-going re-

ports had been identified as including, but not

limited to, the following: Statewide minority

demographics, administrative salary surveys, en-

rollment projection and forecasting studies, de-

grees granted and retention studies, a System

factbook, a System data dictionary, and data ad-

ministration. Besides these on-going studies,

additional special studies on current State and

national educational issues such as assessment of

educational outcomes, minority student recruitment

and retention, teacher education, and educational

cost containment need to be addressed.



The request is made for the remainder of the bien-

nium, but a new position will be requested from

the Legislature in the budget request. If it is

not funded by the Legislature, it will either be

brought back to the Board for additional funding

or be discontinued.



Mr. Klaich requested that the new employee be in-

formed that this position may be temporary.



B. Computer Programming for Automatic Budget System,

up to $50,000 annually



The major problem with the current budget system is

the lack of dedicted, full-time computer program-

ming staff necessary to maintain and develop the

automatic budget system. This problem is compound-

ed even further with the development of the new

financial accounting and payroll systems. This

request will allow the budget system to be revised

to make it compatible with the new financial sys-

tems, and will provide the opportunity to improve

the budgeting process throughout the University of

Nevada System.



This position will be also submitted as a budget

request for continued support from the Legislature.

If it is not funded, Vice Chancellor Sparks stated

that other sources would be sought such as from the

University of Nevada Computing Services.



Approval was given to use up to $50,000 annually of

the Regents Special Projects Funds for development

and maintenance of the Automatic Budget System in

the Finance Office and for the payment of full-time

dedicated computing programming staff for the sys-

tem.



After a discussion on utilizing the remainder of funds for

faculty/staff development programs, the Chancellor was di-

rected to prepare a report on current faculty/staff devel-

opment programs at each Campus for background prior to the

Board considering use of special project funds for staff

development.



Mr. Karamanos moved approval of the report and recommenda-

tions of the Budget and Finance Committee. Mrs. Kenney

seconded. Motion carried.



17. Report and Recommendations of the Investment Committee



A report and recommendations of the Investment Committee

meeting, held December 3, 1987, were made by Regent Klaich,

Chairman.



(1) Approved the following commitments to real estate in-

vestments. The Investment Advisory Staff met on

September 9, 1987, and suggested further diversifica-

tion into real estate investments representing an ad-

ditional defensive move to give protection to the

portfolio in a volatile market.



A. Commitment of $2.5 million of the UNS Permanent

Endowment Funds to TCW Realty Advisors closed-end

commingled real estate fund which is organized as

a Parallel Limited Partnership and Group Trust.



B. Commitment of an additional $1 million of UNS

Permanent Endowment Funds to Advent Realty. With

the investment of $1.5 million previously approved

by the Board of Regents, this addition would in-

crease the total investment with Advent Realty to

$2.5 million.



Mr. Karamanos moved approval of the report and recommenda-

tions of the Investment Committee. Mr. Eardley seconded.

Motion carried.



18. Report and Recommendations of the Legislative Liaison

Committee



A report and recommendation of the Legislative Liaison Com-

mittee meeting, held December 3, 1987, were made by Regent

Daniel J. Klaich, Chairman.



(1) Approved the appointment of the UNS Statewide Legis-

lative Network consisting of the members of the

Legislative Liaison Committee, the Chancellor, Ron

Sparks, Pamela Galloway and Mary Lou Moser, and the

folowing citizens representing each of the Campuses:



UNR - Dave Russell and Steve Brown

UNLV - Mike Sloan and Elaine Wynn

CCCC - Shelley Berkeley and Hal Smith

NNCC - Art Glaser and Bill Wunderlich

TMCC - Paul Bible and Phil Rose

WNCC - Pete Rice and Barbara Little

DRI - Pat Shalmy and Kevin Day



(2) Directed the Chancellor's Office to seek legislation

from the 1989 Nevada Legislature to restore the Higher

Education Capital Construction Fund (HECC) to its

original intent of guaranteeing UNS a minimum of $5

million yearly from slot machine taxes and that these

funds be directed for maintenance and remodeling needs

for the System on an ongoing basis.



(3) At the October, 1987 meeting, in discussing capital

improvement needs of the System, the Board directed the

Committee to develop a support structure for the pas-

sage of AJR 34, which would increase bonding indebted-

ness of the State from 1% to 2% of the assessed valua-

tion of the State. That measure passed the 1987 Ses-

sion of the Legislature, must again be approved in

1989, and be approved by Nevada voters in a subsequent

general election. The Board directed that a resolution

be sent to the Legislators and others in support of

AJR 34.



(4) New Business



A. Mrs. Sheerin informed the Committee that Secretary

Bennett is seeking legislation to discontinue

federal funding to higher education institutions

with loan default rates of 20%. This legislation

would be detrimental, especially to Community Col-

leges in Nevada. Mrs. Sheerin asked the Chancel-

lor to secure default rates for all Campuses using

Secretary Bennett's formula, and to report these

and suggested improvements to lending procedures

to the Board of Regents. This information will

then be reported to the Nevada congressional dele-

gation requesting their support.



B. President Calabro requested that the Committee re-

view the federal financial aid proposal which is

before Congress. Guaranteed Student Loans are

proposed for distribution to only students with

Junior or Senior standing. This would cut off the

Community College students.



C. Mr. Klaich requested that the Board and Chancellor

consider legislation for a pre-paid tuition plan.



D. Mr. Klaich requested that the Chancellor seek mem-

bership on the State's study of the tax structure

and requested a follow-up report.



E. It is being proposed in Congress that the estate

tax pickup funds be utilized to reduce the U. S.

deficit. This is not contained in the Senate's

version of the bill. It was noted that Ms. Pamela

Galloway, Public Information Director, is working

with Senator Harry Reid's office to secure these

funds which are earmarked for education in nevada.



Mr. Klaich explained that the function of the Legislative

Liaison Network is to involve community people in the know-

lege of UNS so that, if needed, they can be called upon to

help during the Legislative Session.



Mr. Klaich moved approval of the report and recommendations

of the Legislative Liaison Committee. Mr. Eardley seconded.

Motion carried.



19. Report and Recommendations of the Ad Hoc DRI Liaison

Committee



A report and recommendations of the ad hoc DRI Liaison Com-

mittee meeting, held December 3, 1987, were made by Regent

Joseph M. Foley, Chairman.



(1) Approved the plans and the lease of the property to the

DRI Research Foundation as found in item 24 of these

minutes.



President Taranik reviewed plans for the DRI Southern

Nevada Research facility. He stated that the facility

will consist of 3 phases located on 8 1/2 acres on the

corner of Swenson Street and Flamingo Road. The pro-

posed site is highly visible to residents and visitors

in Las Vegas. He reviewed several highlights to the

project such as stimulating a close working relation-

ship with community and industry; improving synergism

between research programs at UNLV and DRI; fostering

improved collaborative research with Government Agen-

cies; and providing additional space. President Maxson

was in agreement with the plans and felt this would

give students and faculty exposure to the world class

scientists within DRI.



(2) President Taranik stated the national search for Vice

President for Finance and Administration at DRI at-

tracted 129 applicants. After thorough investigation

it was the consensus of the Committee to support the

recommendation of Mr. Dale Schulke at the annual salary

of $85,000. See item 25 of the minutes for final ap-

proval.



(3) President Taranik and Mr. Gus Zuso, Special Assistant

to the Vice President, reviewed DRI's Technological

Innovation and Transfer Plan. The plan relates to

research and economic development and will provide an

opportunity for faculty to become more involved in

research. The transfer plan is a process to develop

and bring innovation to the marketplace with the key

elements being a research park that will provide di-

rection; technical assistance; and innovation incuba-

tion that will need resources for development of the

concept into the product. The plan is outlined in

Ref. A of the ad hoc DRI Liaison Committee meeting,

filed in the Regents Office.



(4) Approved the discontinuation of the current incentive

pay plan for Administrators and to substitute that plan

with a new pay structure for DRI Center Directors, as

contained in Ref. B of the ad hoc DRI Liaison Committee

meeting, filed in the Regents Office.



(5) President Taranik and Mr. Dale Schulke reviewed the

plans for development of the Dandini Research Park

stating that the preliminary engineering plans have

been developed and the key elements needed for further

development are the implementation of the Technological

Innovation and Transfer Plan and the new facilities

which will be completed in several phases.



Private funds are now being raised for the engineering

study for the road and utilities which is approximately

$40,000 - $50,000. It was stated that the bond funds

would be used as a last resort for funding; however,

they will be used as a leverage to obtain federal fund-

ing for the construction of a building by matching

federal funds with bond funds.



Mrs. Kenney moved approval of the report and recommendations

of the ad hoc DRI Liaison Committee. Mr. Klaich seconded.

Motion carried.



20. Approved Emeritus Status, UNR



Approved John H. Trent, Professor of Curriculum and Instruc-

tion, UNR, to be promoted to emeritus status, retroactive

to September 1, 1987.



Mr. Eardley moved approval of the promotion to Emeritus

status at UNR. Mrs. Kenney seconded. Motion carried.



21. Approved Office Name Change, UNLV



Approved the name change from Office of Information Services

to University News and Publications at UNLV. The new name

would more accurately reflect the functions performed in

that area.



Mrs. Kenney moved approval of the office name change at

UNLV. Mr. Klaich seconded. Motion carried.



22. Approved Title Changes, TMCC



Approved the following changes in title. The change is in

title only and does not effect reporting level or contract

salary.



Rita Gubanich from Dean, Institutional Services, to

Vice President of Institutional Services

Ron Remington from Dean, Instructional Services, to

Vice President of Instructional Services



Mr. Karamanos moved approval of the title changes at TMCC.

Mr. Klaich seconded. Motion carried.



23. Approved Salary Change, TMCC



Approved a salary change for Dr. Karen S. Garner, Executive

Director of Development, from $44,796 to $48,796, an in-

crease of $4,000 or 8.9%.



Dr. Garner's previous title was Assistant to the President.

Of her total new salary, 76.8% will be paid from Title III

monies with the remaining from State funds. Dr. Garner will

be reporting directly to the President and will continue to

complete institutional planning activities for the College

in addition to her new assignment to develop the Foundation.



Mrs. Kenney moved approval of the salary change for Dr.

Karen Garner at TMCC. Mr. Klaich seconded. Motion carried.



24. Approved Lease, DRI



Approved a lease to DRI Research Foundation of approximately

8 acres south of Flamingo Road and west of Swenson Street

for development of DRI Southern Nevada Research Center. See

item 19(1) of these minutes for details.



Mr. Klaich moved approval of the lease to DRI Research Foun-

dation. Mr. Karamanos seconded. Motion carried.



25. Approved Appointment, DRI



Approved the appointment of Mr. Dale Schulke as Vice Presi-

dent for Finance and Administration at DRI, at a salary of

$85,000, effective December 7, 1987.



Mr. Eardley moved approval of the appointment of Mr. Dale

Schulke to the position of Vice President for Finance and

Administration at DRI, at a salary of $85,000, effective

December 7, 1987. Mr. Karamanos seconded. Motion carried.



26. Approved Resolution for Loan, UNR



Approved the following resolution. At the June, 1987 Board

of Regents meeting, UNR was authorized to borrow $300,000

for the expansion of the Jot Travis Student Union. In order

to obtain this loan at a favorable rate, UNR must certify

that the loan qualifies as a tax exempt obligation under the

Internal Revenue Code of 1986, as amended.



RESOLUTION #87-11



WHEREAS, the University of Nevada System (the "Univer-

sity") anticipates issuing less than $10,000,000 in

obligations the interest on which is exempt from federal

income taxation during calendar year 1987; and



WHEREAS, the University intends on borrowing $300,000

from First Interstate Bank of Nevada for the purpose of

financing certain improvements at the University of

Nevada, Reno, such borrowing to be evidenced by a note

signed by the appropriate officials at the University

(the "Note"); and



WHEREAS, the University will pay a more favorable in-

terest rate on the Note if the University designates

the Note as a "Qualified Tax Exempt Obligation" under

Section 265 (b) (3) of the Internal Revenue Code of 1986

as amended.



NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF REGENTS

OF THE UNIVERSITY OF NEVADA:



Section 1. The Note is hereby designated as a qualified

tax exempt obligation pursuant to Section 265 (b) (3) of

the Internal Revenue Code of 1986, as amended.



Section 2. This resolution shall be effective on its

passage and approval.



Mrs. Kenney moved approval of the resolution for a loan at

UNR. Mr. Klaich seconded. Motion carried.



The meeting adjourned at 12:25 P.M.



Mary Lou Moser

Secretary of the Board

12-04-1987