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