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BOARD OF REGENTS* and its INVESTMENT AND FACILITIES COMMITTEE NEVADA SYSTEM OF HIGHER EDUCATION UNLV Student Union, Ballrooms B & C University of Nevada, Las Vegas 4505 S. Maryland Parkway, Las Vegas Thursday, November 29, 2012, 3:00 p.m. Video or Telephone Conference Connection to: System Administration – Reno 2601 Enterprise Rd., Reno Great Basin College – Elko Berg Hall Conference Room, 1500 College Parkway, Elko A video conference and/or telephone conference connection will be made to the Conference room in the Reno System Administration building at 2601 Enterprise Rd., Reno, Nevada, and to Great Basin College, 1500 College Parkway, Berg Hall Conference room, Elko, Nevada. Members of the Board and/or the public may attend the meeting and provide testimony or public comment via the video or telephone conference connection. BOARD Dr. Jason Geddes, Chair _____ ROLL CALL: Mr. Kevin J. Page, Vice Chair _____ Mr. Mark Alden _____ Dr. Andrea Anderson _____ Mr. Robert J. Blakely _____ Mr. Cedric Crear _____ Dr. Mark W. Doubrava _____ Mr. James Dean Leavitt _____ Mr. Ron Knecht _____ Mr. Kevin C. Melcher _____ Dr. Jack Lund Schofield _____ Mr. Rick Trachok _____ Mr. Michael B. Wixom _____ COMMITTEE Mr. Michael B. Wixom, Chair _____ ROLL CALL: Mr. James Dean Leavitt, Vice Chair _____ Mr. Mark Alden _____ Mr. Cedric Crear _____ Mr. Ron Knecht _____ Dr. Jack Schofield _____ In addition to the Investment and Facilities Committee, this meeting is noticed as a meeting of the Board of Regents to allow other Regents who may wish to attend to participate. NOTE: Below is an agenda of all items scheduled to be considered. Notification is hereby provided that items on the agenda may be taken out of the order presented, two or more agenda items may be combined for consideration, and an agenda item may be removed from the agenda or discussion relating to an item on the agenda may be delayed at any time. Investment and Facilities Committee Agenda Page 2 11/29/12 In accordance with the Board of Regents’ Bylaws, Title I, Article V, Section 20, items voted on may be the subject of a motion to reconsider at this meeting. A motion to reconsider an item may be made at any time before adjournment of this meeting. Similarly, if an item is tabled at any time during the meeting, it may, by proper motion and vote, be taken from the table and thereafter be the subject of consideration and action at any time before adjournment of this meeting. *The Board of Regents, at its regularly scheduled meetings, meets concurrently with its Committees (the Audit Committee; the Academic and Student Affairs Committee; the Business and Finance Committee; the Cultural Diversity Committee; the Investment and Facilities Committee; the Health Sciences System Committee; and the Workforce, Research & Economic Development Committee). The Board’s Committee meetings take place in accordance with the agendas published for those Committees. Regents who are not members of the Committees may attend the Committee meetings and participate in the discussion of Committee agenda items. However, action items will only be voted on by the members of each Committee, unless a Regent is temporarily made a member of that Committee under Board of Regents’ Bylaws, Title 1, Article VI, Section 6. The full Board of Regents will consider Committee action items in accordance with the Board of Regents’ agenda published for the current or for a subsequent meeting. In accordance with the Board of Regents' Bylaws, Title 1, Art. V, Section 13, a quorum may be gained by telephonic hookup. In accordance with NRS 241.020(6), support materials that are submitted to the Board of Regents’ Office and then distributed to the members of the Board of Regents after the mailing of this agenda but before the meeting, will be made available as follows: 1. Copies of any such supplemental support materials are available at the Board of Regents’ Office Reno, Nevada. A copy may be requested by calling (775) 784-4958; 2. Copies of any such supplemental support materials will be available at the meeting site. Reasonable efforts will be made to assist and accommodate physically disabled persons attending the meeting. Please call the Board office at (775) 784-4958 in advance so that arrangements may be made. Investment and Facilities Committee Agenda Page 3 11/29/12 1. PUBLIC COMMENT INFORMATION ONLY Public comment will be taken during this agenda item. No action may be taken on a matter raised under this item until the matter is included on an agenda as an item on which action may be taken. Comments will be limited to three minutes per person. Persons making comment will be asked to begin by stating their name for the record and to spell their last name. The Committee Chair may elect to allow additional public comment on a specific agenda item when that agenda item is being considered. In accordance with Attorney General Opinion No. 00-047, as restated in the Attorney General’s Open Meeting Law Manual, the Board Chair may prohibit comment if the content of that comment is a topic that is not relevant to, or within the authority of, the Board of Regents, or if the content is willfully disruptive of the meeting by being irrelevant, repetitious, slanderous, offensive, inflammatory, irrational or amounting to personal attacks or interfering with the rights of other speakers. 2. CONSENT ITEMS FOR POSSIBLE ACTION Consent items will be considered together and acted on in one motion unless an item is removed to be considered separately by the Committee. 2a. MINUTES FOR POSSIBLE ACTION Request is made for approval of the minutes from the September 6, 2012, meeting. (Ref. IF-2a) 2b. ACQUISITION OF REAL PROPERTY FOR POSSIBLE ACTION LOCATED AT 847 N. CENTER STREET, RENO, NV – UNR President Marc A. Johnson requests approval to purchase real property at 847 N. Center Street, Reno, Nevada for $425,000. (Ref. IF-2b) Fiscal Impact: Expenditure of $425,000 from the Property Acquisition Account. Investment and Facilities Committee Agenda Page 4 11/29/12 2. CONSENT ITEMS (continued) 2c. SALE OF MINING CLAIMS FOR POSSIBLE ACTION LOCATED IN THE STATE OF IDAHO – UNR President Marc A. Johnson requests approval to sell six patented mining claims in Blaine County, Idaho, for $120,000, plus a 30% royalty on any future timber rights. (Ref. IF-2c) 2d. POLICE SERVICES LEASE FOR POSSIBLE ACTION AMENDMENT – UNLV President Neal J. Smatresk presents for approval a four- year lease amendment with the option of renewing for two, one-year terms, with Harmon Midtown Partners LLC, to be effective March 1, 2013. UNLV Police Services will occupy the property which is located at 1325 East Harmon Avenue. (Ref. IF-2d) Fiscal Impact: The terms of this amendment will reduce the base rent and operations and maintenance expenses from those paid under the terms of the existing lease by $212,000 or 20% over the four-year term. Under the proposed lease amendment the cost for the four-year term is estimated to be $834,000. 2e. KUNV COMMUNICATIONS FOR POSSIBLE ACTION LICENSE AGREEMENT – UNLV President Neal J. Smatresk presents for approval a ten-year license agreement with KLAS, LLC, that will grant the KUNV radio station use of the transmitter site. (Ref. IF-2e) Fiscal Impact: The cost of the proposed license agreement with KLAS, LLC, over the ten-year term, is estimated to be $271,000. The terms of this new license agreement with KLAS, LLC, will reduce the rate from those paid under the terms of the existing license agreement with Telecom Towers, LLC, by $298,000, or 48% over the ten-year term. Federal grant funding and KUNV self-supported funds will pay the license fees and utility costs due under the license agreement. Investment and Facilities Committee Agenda Page 5 11/29/12 2. CONSENT ITEMS (continued) 2f. SPACE STUDY INVENTORY AND FOR POSSIBLE ACTION UTILIZATION REPORTS The Committee may approve acceptance of the updated inventory and utilization of NSHE institution facilities report submitted by Mr. Vic Redding, Vice Chancellor, Finance and Administration. (Ref. IF-2f) ESTIMATED TIME: 5 mins. 3. ASSET ALLOCATION AND FOR POSSIBLE ACTION INVESTMENT RETURNS Cambridge Associates will present a report on asset allocation and investment returns for the pooled endowment and pooled operating funds for the quarter ended September 30, 2012. The Committee will review how a change in asset allocation may impact investment returns and volatility within the pooled funds. The Committee may take action based on the report, including, but not limited to, making recommendations to the Board to change the asset allocation, and changes to the fund managers and strategic ranges for the pooled funds. ESTIMATED TIME: 15 mins. 4. OPERATING POOL RESERVE UPDATE INFORMATION ONLY Ms. Ruby Camposano, Director of Banking and Investments, will report on the activities and the most current balance of the reserve account of the operating pool fund. In particular, the Committee discussion will focus on the amount held in the reserve account of the operating pool fund and its expected duration. ESTIMATED TIME: 5 mins. Investment and Facilities Committee Agenda Page 6 11/29/12 5. DISTRIBUTION FROM ENDOWMENT FOR POSSIBLE ACTION FUNDS The Investment and Facilities Committee will discuss current NSHE distributions from the endowment fund, including the 4.5% spending rate and 1.5% management fee distribution, in relation to current investment allocation, projected returns, and Board policy (Handbook, Title 4, Chapter 10, Section 5). The Committee will review how changes to the policy on distribution may impact long-term objectives. The Committee may take action based on the discussion, including, but not limited to, revising the policy on distributions from the endowment fund, including the 4.5% spending rate and the 1.5% management fee distribution. (Ref. IF-5) ESTIMATED TIME: 40 mins. 6. SYSTEM ADMINISTRATION FOR POSSIBLE ACTION BUILDING, LAS VEGAS Chancellor Daniel J. Klaich requests approval of a purchase agreement and financing plan for a System Administration Building located at East Rochelle Avenue and South Maryland Parkway, Las Vegas. (Ref. IF-6) Fiscal Impact: The purchase is approximately $3,325,000 (subject to final construction plans) which will be financed from an inter-institutional loan at 3.25% for 25 years. The debt service, as well as O/M costs associated with this building, will be paid from existing budgeted lease funds. ESTIMATED TIME: 15 mins. Investment and Facilities Committee Agenda Page 7 11/29/12 7. CAMPUS DEVELOPMENT - NSC FOR POSSIBLE ACTION President Bart J. Patterson requests approval to: 1) construct two buildings pursuant to the general terms approved by the Board; 2) implement a Special Building Fee of $150 per semester for students enrolled for more than three credit hours effective fall 2013; 3) take this project before the Interim Finance Committee and/or Legislature to seek approvals as required under Chapter 353 of NRS; and 4) delegate authority to the Investment and Facilities Committee to approve lease, ground lease, loan and other official documents as necessary to construct two facilities on the NSC campus through a lease/purchase arrangement. (Ref. IF-7) Fiscal Impact: Current projections for this project include a total project expense budget of $61.5 million to be financed over a 30 year period of time. ESTIMATED TIME: 30 mins. 8. SMITH CENTER IMPACT ON UNLV INFORMATION ONLY PERFORMING ARTS CENTER President Neal J. Smatresk will present a description of the UNLV Performing Arts Center activities and a preliminary assessment of how the program and activities will be complementary with the new Smith Center. (Ref. IF-8) ESTIMATED TIME: 15 mins. 9. UNIVERSITY OF NEVADA SCHOOL OF INFORMATION ONLY MEDICINE LAS VEGAS CAMPUS Dr. Thomas L. Schwenk, Dean, University of Nevada School of Medicine (UNSOM), and Vice President, Division of Health Sciences, UNR, will update the Committee on the planning progress of the UNSOM Las Vegas campus. (Ref. IF-9) Fiscal Impact: At this time the item is informational only. Complete financial impact has not been assessed. The University of Nevada School of Medicine expended $88,325 for the initial planning services provided by JMA. ESTIMATED TIME: 25 mins. Investment and Facilities Committee Agenda Page 8 11/29/12 10. SALE OF A PORTION OF UNIVERSITY FOR POSSIBLE ACTION OF NEVADA, RENO, MAIN STATION FIELD LABORATORY TO THE WASHOE COUNTY REGIONAL TRANSPORTATION COMMISSION – UNR President Marc A. Johnson requests approval of: 1) The sale of 165.26 acres in the Main Station Field Laboratory to the Washoe County Regional Transportation Commission for $7,402,600.00, the resolution approving the sale, and authorization for the Chancellor to sign documents necessary to accomplish the sale; and 2) The waiver of Board Resolution 81-8 with respect to the sale proceeds from this sale so such proceeds can be used for the purposes of further paying down remaining UNR Fire Science Academy capital and operating debt and/or for use for UNR capital improvements approved by the Board of Regents. (Ref. IF-10) ESTIMATED TIME: 5 mins. 11. SALE OF EXCESS WATER RIGHTS AT FOR POSSIBLE ACTION MAIN STATION FIELD LABORATORY IN RENO, NEVADA – UNR President Marc A. Johnson requests approval of: 1) An option agreement for the sale of up to 961.86 acre feet of water rights to Great Basin Land and Water, a non-profit corporation, the resolution to approve the option agreement, and authorization for the Chancellor to sign documents necessary to accomplish the sales pursuant to the option agreement; and 2) The waiver of Board Resolution 81-8 with respect to the sale proceeds from this sale so such proceeds can be used for the purposes of further paying down remaining UNR Fire Science Academy capital and operating debt and/or for use for UNR capital improvements approved by the Board of Regents. (Ref. IF-11) ESTIMATED TIME: 5 mins. Investment and Facilities Committee Agenda Page 9 11/29/12 12. ECONOMIC DEVELOPMENT INFORMATION ONLY ADMINISTRATION GRANT FOR RAGGIO PARKWAY IMPROVEMENTS DRI President Stephen G. Wells and TMCC President Maria C. Sheehan will present for information an overview of a U.S. Economic Development Administration grant for improvement to and reconstruction of Raggio Parkway, a campus street that provides access to the DRI and TMCC Reno campuses. (Refs. IF-12(a) & IF-12(b)) ESTIMATED TIME: 10 mins. 13. NEW BUSINESS INFORMATION ONLY Items for consideration at future meetings may be suggested. Any discussion of an item under "New Business" is limited to description and clarification of the subject matter of the item, which may include the reasons for the request. 14. PUBLIC COMMENT INFORMATION ONLY Public comment will be taken during this agenda item. No action may be taken on a matter raised under this item until the matter is included on an agenda as an item on which action may be taken. Comments will be limited to three minutes per person. Persons making comment will be asked to begin by stating their name for the record and to spell their last name. The Committee Chair may elect to allow additional public comment on a specific agenda item when that agenda item is being considered. In accordance with Attorney General Opinion No. 00-047, as restated in the Attorney General’s Open Meeting Law Manual, the Board Chair may prohibit comment if the content of that comment is a topic that is not relevant to, or within the authority of, the Board of Regents, or if the content is willfully disruptive of the meeting by being irrelevant, repetitious, slanderous, offensive, inflammatory, irrational or amounting to personal attacks or interfering with the rights of other speakers. Investment and Facilities Committee Agenda Page 10 11/29/12 POSTED AT THE NEVADA SYSTEM OF HIGHER EDUCATION WEBSITE (at http://system.nevada.edu/), AT THE SYSTEM ADMINISTRATION BUILDINGS AND E-MAILED FOR POSTING AT THE EIGHT NSHE INSTITUTIONS: CSN, Building D, 1st Floor, 6375 W. Charleston Blvd., Las Vegas, NV 89146-1124 DRI, Maxey Building, 2215 Raggio Parkway, Reno, NV 89512-1095 DRI, Southern Nevada Science Center, 755 East Flamingo Road, Las Vegas, NV 89119-7363 GBC, Berg Hall, 1500 College Parkway, Elko, NV 89801 NSC, Great Hall, 1125 Nevada State Drive, Henderson, NV 89015 TMCC, Red Mountain Building (RDMT 200), 7000 Dandini Blvd., Reno, NV 89512 UNLV, Flora Dungan Humanities (FDH), 1st and 7th floors, 4505 Maryland Parkway, Las Vegas, NV 89154-1001 UNR, Clark Administration, University of Nevada, Reno, Reno, NV 89557 WNC, Bristlecone Building Lobby, 2201 W. College Parkway, Carson City, NV 89703 System Administration, 5550 W. Flamingo, Suite A-5, Las Vegas, NV 89103 System Administration, 2601 Enterprise Road, Reno, NV 89512
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