11/6/2009 BOT 1 10:15 a.m. - 1. Roll Call 2. Approval of the Minutes of Previous Meetings Will the Board of Trustees approve the minutes of the meeting of the Board held on September 11, 2009? 3. Informational Report by the President of the University 4. Informational Report on Campus Landscape Mr. Gordon E. Turow, Director of Campus Planning and Design, will present an informational report on recent landscape enhancements at various Penn State campus locations, including University Park. 11:15 a.m. - 5. Informational Report on Enrollment and Student Financial Aid Dr. Robert N. Pangborn, Vice President and Dean for Undergraduate Education, Ms. Anne L. Rohrbach, Executive Director for Undergraduate Admissions, and Ms. Anna M. Griswold, Assistant Vice President for Undergraduate Education and Executive Director for Student Aid, will present an informational report on Penn State's admissions, enrollment, and student financial aid programs. 1:00 p.m. - 6. Reports from Standing Committees Discussion of action and/or information items by the Standing Committees for consideration by the Board of Trustees: A. Committee on Campus Environment - Marianne E. Alexander, Chair B. Committee on Educational Policy - Samuel E. Hayes, Jr., Chair The following agenda item was presented to the Trustees as a white sheet item at the meeting. Recommendation for Approval of Administrative Appointment Will the Committee on Educational Policy recommend to the Board of Trustees adoption of the following resolution: RESOLVED, That the Board of Trustees approves President Graham B. Spanier's appointment of Dr. Henry C. Foley as Vice President for Research and Dean of the Graduate School effective January 1, 2010. 1) Pending Legal Matters An informational report will be presented on pending legal matters relating to policies normally considered by the Committee on Educational Policy.
Transcript
11/6/2009 BOT 1
10:15 a.m. - 1. Roll Call
2. Approval of the Minutes of Previous Meetings
Will the Board of Trustees approve the minutes of the meeting of the Board held on September 11,2009?
3. Informational Report by the President of the University
4. Informational Report on Campus Landscape
Mr. Gordon E. Turow, Director of Campus Planning and Design, will present an informational reporton recent landscape enhancements at various Penn State campus locations, including UniversityPark.
11:15 a.m. -5. Informational Report on Enrollment and Student Financial Aid
Dr. Robert N. Pangborn, Vice President and Dean for Undergraduate Education, Ms. Anne L.Rohrbach, Executive Director for Undergraduate Admissions, and Ms. Anna M. Griswold, AssistantVice President for Undergraduate Education and Executive Director for Student Aid, will presentan informational report on Penn State's admissions, enrollment, and student financial aid programs.
1:00 p.m. - 6. Reports from Standing Committees
Discussion of action and/or information items by the Standing Committees for consideration by theBoard of Trustees:
A. Committee on Campus Environment - Marianne E. Alexander, Chair
B. Committee on Educational Policy - Samuel E. Hayes, Jr., Chair
The following agenda item was presented to the Trustees as a white sheet item at the meeting.
Recommendation for Approval of Administrative Appointment
Will the Committee on Educational Policy recommend to the Board of Trustees adoption ofthe following resolution:
RESOLVED, That the Board of Trustees approves PresidentGraham B. Spanier's appointment of Dr. Henry C. Foley as Vice Presidentfor Research and Dean of the Graduate School effective January 1, 2010.
1) Pending Legal Matters
An informational report will be presented on pending legal matters relating topolicies normally considered by the Committee on Educational Policy.
11/6/2009 BOT 2
6. Reports from Standing Committees (Continued)
C. Committee on Finance and Physical Plant - Linda B. Strumpf, Chair
1) Discussion of Consent Agenda Items Provided for Information or Approval ofthe Committee on Finance and Physical Plant:
Information Items - a) Naming of Rooms, Portions of Buildings and Plazasb) Status of Major Construction Programs and Borrowingc) Sale of Gifted Propertiesd) Conflict of Interest - Disclosure
Action Items -e) Summary of Revisions to Existing Scholarships, Fellowships, Etc.f) Acknowledgments of Endowments and Other Major Commitments
(See Appendix I)
2) Conflict of Interest - Amendment to 2008 Contract with Toftrees Golf Resortand Conference Center and Ratification of a Contract with Allied Mechanicaland Electrical Company
The Bylaws of the University, Article 6(1), provide that, "No member of the Board ofTrustees, any member's spouse or any corporation, partnership, association or otherorganization in which one or more members of the Board of Trustees, or anymember's spouse or minor child has a beneficial ownership of ten (10%) percent ormore, shall enter into any contract or transaction valued at $10,000 or more with theUniversity unless the contract has been awarded through an open and publicbidding process or has been fully disclosed to the Board of Trustees and approvedby the affirmative votes of a majority of the disinterested members of the Board ofTrustees."
As of December 31, 2008, Trustee Emeritus William A. Schreyer owned 9.9%interest of State College Friends, L.P. and a 10% interest of State College Friends,LLC. These entities combined comprise a 10% ownership of Toftrees Golf Resortand Conference Center.
At its January 2008 meeting, the Board of Trustees approved an agreementbetween the University and Toftrees Golf Resort and Conference Center for the2008 football season to house the Penn State football team the night prior to eachhome football game for a cost not-to-exceed $134,000. Having now completed the2008 home football season, actual costs were $135,034.08 or $1,034.08 higher thanthe approved not-to-exceed amount.
Trustee Emeritus William A. Schreyer also owns an interest of 10% or more in AlliedMechanical and Electrical Company. The University contracted for the Departmentof Aerospace Engineering to utilize Allied Mechanical and Electrical Company forthe purpose of installing an icing chamber based on earlier plumbing workperformed by Allied Mechanical and Electrical Company in the building. Theirknowledge of the plumbing system was determined to be advantageous to theinstallation. As this transaction is valued greater than $10,000, ratification of thetransaction by the Board of Trustees is required.
11/6/2009 BOT 3
6. Reports from Standing Committees (Continued)
C. Committee on Finance and Physical Plant (Continued)
2) Conflict of Interest - Amendment to 2008 Contract with Toftrees Golf Resortand Conference Center and Ratification of a Contract with Allied Mechanicaland Electrical Company (Continued)
Will the Committee on Finance and Physical Plant recommend to the Board ofTrustees adoption of the following resolutions:
RESOLVED, That the resolution adopted by the Board ofTrustees approving the agreement between the University andToftrees Golf Resort and Conference Center to provide hotelaccommodations and meals for the Penn State football team for the2008 football season is amended to reflect the actual cost of$135,034.08.
FURTHER BE IT RESOLVED, That the transaction wherebythe University has contracted for the Department of AerospaceEngineering to utilize Allied Mechanical and Electrical Company toinstall an icing chamber for a cost-not-to-exceed $27,540 is ratified.
The following agenda item was withdrawn from consideration at the meeting and deferred until asubsequent meeting.
3) Consideration of Request for 2010-2011 Appropriation for Operations
Will the Committee on Finance and Physical Plant recommend to the Board ofTrustees adoption of the following resolution:
RESOLVED, That the Officers of the University areauthorized to submit to the Legislature, appropriate departments,and offices of the Commonwealth of Pennsylvania, a StateAppropriation Request for fiscal year 2010-2011 in the amount of *.
(*Details concerning the State Appropriation Request for 2010-2011 will be mailedto Trustees under separate cover or distributed at the meeting.)
4) Proposed Changes in Room and Board Charges Effective for the 2010 FallSemester, The Pennsylvania State University
It will be necessary to increase room and board charges effective for the 2010 FallSemester because of increased operating and facility maintenance costs. InNovember 2008, the Board of Trustees was advised that the rate caps on the priceof electricity in effect throughout Pennsylvania since late in 1996, when thederegulation of electricity generation was approved, were expiring. ThePennsylvania Public Utilities Commission determined that the rate cap for PennState expired on December 31, 2008. The additional $25 per semester fee to coverthe increase in electric costs, authorized by the Board of Trustees in November2008, was effectuated and is now fully incorporated in the proposed rates for 2010.
Appendix II provides details of the Housing and Food Service Budget Presentationfor 2009-2010, as well as the proposed rates at University Manor, The Milton S.Hershey Medical Center.
11/6/2009 BOT 4
6. Reports from Standing Committees (Continued)
C. Committee on Finance and Physical Plant (Continued)
4) Proposed Changes in Room and Board Charges Effective for the 2010 FallSemester, The Pennsylvania State University (Continued)
Will the Committee on Finance and Physical Plant recommend to the Board ofTrustees adoption of the following resolution:
RESOLVED, That room and board charges at all locations beincreased as shown on Schedules I through IV attached hereto andwhich are a part of this resolution.
(See Appendix II)
5) Proposed Final Plans and Authorization to Award Contracts, Penn StateHershey Children's Hospital, The Milton S. Hershey Medical Center
In accordance with the campus master plan for The Milton S. Hershey MedicalCenter, the University plans to construct a new Children's Hospital that will providefacilities for pediatric health care to serve the children of central Pennsylvania.
The Board of Directors of The Milton S. Hershey Medical Center will meet onNovember 4, 2009. The following resolution will be discussed and, if approved, willbe recommended to the Committee on Finance and Physical Plant:
RESOLVED, That the Board of Directors of The Milton S.Hershey Medical Center recommends to the Board of Trustees ofThe Pennsylvania State University, via the appropriate standingcommittee, that the final plans for the new Penn State HersheyChildren's Hospital, The Milton S. Hershey Medical Center, asdesigned by the firm of Payette Associates of Boston,Massachusetts, be approved.
Will the Committee on Finance and Physical Plant recommend to the Board ofTrustees adoption of the following resolutions:
RESOLVED, That the final plans for the new Penn State HersheyChildren’s Hospital, The Milton S. Hershey Medical Center, as designed bythe firm of Payette Associates of Boston, are approved.
BE IT FURTHER RESOLVED, That authorization to award contractsto construct the project be approved at a cost not-to-exceed $206,500,000from funds available to the University.
11/6/2009 BOT 5
6. Reports from Standing Committees (Continued)
C. Committee on Finance and Physical Plant (Continued)
6) Proposed Final Plans and Authorization to Award Contracts, Parking Garage –Phase II, The Milton S. Hershey Medical Center
The University is planning to construct Phase II of the parking garage at TheMilton S. Hershey Medical Center that will include 959 spaces in order toaccommodate the needs of the future Penn State Hershey Children's Hospital, andother planned expansions.
The Board of Directors of The Milton S. Hershey Medical Center will meet onNovember 4, 2009. The following resolution will be discussed and, if approved, willbe recommended to the Committee on Finance and Physical Plant:
RESOLVED, That the Board of Directors of The Milton S.Hershey Medical Center recommends to the Board of Trustees ofThe Pennsylvania State University, via the appropriate standingcommittee, that the final plans for Phase II of the Parking Garage,The Milton S. Hershey Medical Center, as designed by the firm ofPayette Associates of Boston, Massachusetts, be approved.
Will the Committee on Finance and Physical Plant recommend to the Board ofTrustees adoption of the following resolution:
RESOLVED, That the final plans for Phase II of the ParkingGarage, The Milton S. Hershey Medical Center, as designed by thefirm of Payette Associates of Boston, Massachusetts are approved.
BE IT FURTHER RESOLVED, That authorization to awardcontracts to construct the project be approved at a costnot-to-exceed $20,300,000 from funds available to the University.
7) Report on Audited Financial Statements
Comments about the University's Audited Financial Statements will be made byJoseph J. Doncsecz, Corporate Controller. A representative from Deloitte & Touchewill also be in attendance at the meeting.
(Copies of the Audited Financial Statements will be mailed to Trustees underseparate cover.)
8) Photo Report on Selected Construction Projects
A photo report on the progress of selected construction projects will be presentedat the meeting.
9) Pending Legal Matters
An informational report will be presented on pending legal matters relating topolicies normally considered by the Committee on Finance and Physical Plant.
11/6/2009 BOT 6
7. Proposed Appointment of a Screening Committee for the Distinguished Alumni Award
Will the Board of Trustees authorize the Chairman of the Board to appoint a committee to screenall nominees for the Distinguished Alumni Award, and present a slate at the January 2010 meeting?
8. Approval of Revised Standing Orders
It is proposed to adopt a statement of expectations of membership that codifies current practices.The statements of responsibility and expectations of membership will be shared with the variousconstituencies to enlist assistance in identifying members with the characteristics or skill-setsnecessary to enhance the working and the functioning of the Board. It will be a valuable tool forrecruitment and assessment, and become a foundation for good governance.
In addition to the statement of expectations of membership, other minor changes reflecting actionsby the Board such as determining compensation for the President, establishment of investmentpolicies, audit oversight, etc., are included.
Will the Board of Trustees adopt the following resolution:
RESOLVED, That the Standing Orders of the Board of Trustees of ThePennsylvania State University, as reflected in Appendix III, are approved.
(See Appendix III)
9. Announcements by the Chairman of the Board of Trustees
Schedule I The Pennsylvania State University Proposed Room and Board Rates Effective Fall 2010 Undergraduate Residence Hall Room Rates/Person/Semester (Meal Plan Required) Number of Current Proposed Proposed Room Description Occupants Rate Rate Increase Supplemental 3-8 $1,595 $1,630 $35 Standard Triple 3 1,980 2,030 50 Triple 3 2,265 2,325 60 Quad 4 1,980 2,030 50 Standard Double 2 2,215 2,270 55 Double 2 2,535 2,595 60 Double Small 2 1,650 1,690 40 Standard Triple as Double 2 2,215 2,270 55 Standard Quad as Triple 3 2,215 2,270 55 Standard Triple/Bath 3 2,215 2,270 55 Standard Double/Bath 2 2,365 2,425 60 Standard Single 1 2,930 3,020 90 Single 1 3,355 3,460 105 Single/Bath 1 3,740 3,860 120 Large Single/Bath 1 3,945 4,085 140 Standard Double as Single 1 2,970 3,070 100 Double as Single 1 3,390 3,500 110 RA Double/Single 1 1,535 1,565 30 RA Single 1 1,535 1,565 30 RA Double/Double 2 1,280 1,300 20 Standard Double Suite 2 2,600 2,665 65 Standard Single Suite/Bath 1 2,950 3,045 95 Standard Double Suite as Single Suite 1 2,950 3,045 95 Double Suite 2 2,805 2,875 70 Double Suite as Single Suite 1 3,620 3,735 115 Single Suite 1 3,620 3,735 115 RA Single Suite 1 2,100 2,140 40
11/6/2009 BOT 7
Schedule II The Pennsylvania State University Proposed Room and Board Rates Effective Fall 2010 University Park Nittany Apartment Rates/Person/Semester* Number of Current Proposed Proposed Room Description Occupants Rate Rate Increase 2 Bedroom Garden 4 $2,670 $2,740 $70 4 Bedroom Garden 4 3,000 3,075 75 4 Bedroom Townhouse 4 3,105 3,185 80 *Room rate includes utilities. Erie, Behrend Apartment Rates/Person/Semester* Number of Current Proposed Proposed Room Description Occupants Rate Rate Increase 2 Bedroom Garden 4 $2,670 $2,740 $70 RA Apartment 3 1,760 1,795 35
*Room rate includes utilities.
Harrisburg Apartment Rates/Person/Semester* Number of Current Proposed Proposed Room Description Occupants Rate Rate Increase Apartments-Bedroom Single 4 $3,185 $3,265 $80 Apartments-Bedroom Double 8 2,805 2,875 70 RA Apartment 1 2,245 2,290 45
*Room rate includes utilities.
11/6/2009 BOT 8
Schedule III The Pennsylvania State University Proposed Room and Board Rates Effective Fall 2010 University Park Graduate Family Apartment Rates/Month* Number of Current Proposed Proposed Room Description Occupants Rate Rate Increase White Course 1 Bedroom N/A $ 880 $ 900 $20 White Course 2 Bedroom N/A 1,000 1,025 25 White Course 3 Bedroom N/A 1,135 1,165 30 *Rate includes utilities. University Park Graduate Apartment Rates/Person/Month* Number of Current Proposed Proposed Room Description Occupants Rate Rate Increase White Course 4 Bedroom Apartment 4 $700 $720 $20 Grad/Hsg. Asst., Single 1 490 500 10 *Rate includes utilities. Board Plan Rates/Semester Number of Current Proposed Proposed Meal Plan Points Rate Rate Increase Plan 1 51,000 $1,735 $1,775 $40 Plan 2 59,000 1,815 1,855 40 Plan 3 65,000 1,870 1,915 45 Plan 4 74,500 1,960 2,010 50 Plan 5 82,500 2,035 2,090 55 Plan 6 98,000 2,180 2,245 65
* NOTE: Proposed monthly increase per bedroom is $18
11/6/2009 BOT 10
11/6/2009 - Consent Agenda F&PP
(Appendix I)- 1 -
1. Naming of Rooms, Portions of Buildings and Plazas
The Facilities Naming Committee has made certain recommendations to the President on the naming ofrooms, portions of buildings and plazas. In accordance with the Policy on Naming University Facilities, theBoard of Trustees is hereby informed that the President has approved the following naming actions:
A. Room 10 in Henderson Building, "The Hintz Family Student Center" in honor of a gift from Helen andEd Hintz.
B. The auditorium/lecture hall in the basement level of Henderson Building the "Ruth Pike Auditorium"for a commitment from Dottie and Lloyd Huck. The plaque should read: "The Ruth Pike Auditoriumnamed in recognition of Dr. Ruth Pike, Professor Emerita of Nutrition by Dottie and Lloyd Huck."
C. The weather center on the sixth floor of Walker Building the "Joel N. Myers Weather Center" for acommitment from Joel Myers.
D. The service desk lobby (space 4A) in the Knowledge Commons of Pattee Library the "Allen J. andJudith R. Weltmann Central Service Lobby" for a gift from Allen and Judith Weltmann.
2. Status of Major Construction Programs and Borrowing
(See Appendix I.1)
3. Sale of Gifted Properties
Standing Order V., Paragraph (4)(c) provides that "Proceeds from the sale of land and other real estate giftedto the University for the express purpose of sale," are to be reported to the Board of Trustees for information.The Board of Trustees is advised of the following property transactions:
A. In September 2006, a 1,440 square foot residence located at 1455 W. Maple Street, Valley View,Pennsylvania, was gifted to the University from the estate of Roscoe Blyler. The terms of the gift donot obligate the University to retain this property and the University has no specific use for theproperty. In March 2007, the property was sold to Kelly Bari for $107,000. Net sale proceeds willfund the Roscoe W. Blyler Fund for Excellence in the College of Engineering at the request of thedonors.
B. In December 2008, an undeveloped residential property, comprised of 3.07 acres, Lot 10-4, NorthLake Section B, Sunset Road, Georgetown, Texas, was gifted to the University from Joseph andElizabeth Tipping. The terms of the gift do not obligate the University to retain this property and theUniversity has no specific use for the property. In July 2009, the property was sold to Miguel andMarie Esparza for $66,500. Net sale proceeds will fund Joseph V. Jr. and Elizabeth O'Shea TippingEndowed Athletic Scholarship at the request of the donors.
4. Conflict of Interest - Disclosure
The Bylaws of the University, Article 6(1)(a)2, require that contracts or transactions valued at less than$10,000 between the University and one or more members of the Board of Trustees shall be subject todisclosure, but shall not be subject to bidding requirements and need not be approved by the Board ofTrustees. Disclosure of such contracts and transactions is to be made annually by written report to the Boardof Trustees. Appendix 1.2 is a disclosure list of such contracts and transactions between the University andmembers of the Board of Trustees for the 2008-2009 fiscal year. The Officers of the University certify that thecontracts and transactions were made in the normal course of business and were fair to the University.
(See Appendix I.2)
11/6/2009 - Consent Agenda F&PP
(Appendix I)- 2 -
5. Summary of Revisions to Existing Scholarships, Fellowships, Etc. (For the period August 17, 2009through October 9, 2009)
Will the Committee on Finance and Physical Plant recommend to the Board of Trustees adoption of thefollowing resolution:
RESOLVED, That the conditions governing certain existing scholarships, fellowships,awards, and similar funds previously established at the University be revoked and that theOfficers of the University are authorized to put into effect the revised regulations as requestedby the donors.
6. Acknowledgments of Endowments and Other Major Commitments
The Committee on Finance and Physical Plant is advised that for the period August 17, 2009, throughOctober 9, 2009, 21 new funds totaling approximately $888,500 were accepted by the University, includingscholarships, fellowships, etc. All of these items conform to established University policies and regulations.
For the period July 1, 2009 through August 31, 2009, 38 major commitments were accepted by the Universitytotaling approximately $15,497,263.
Will the Committee on Finance and Physical Plant recommend to the Board of Trustees adoption of thefollowing resolutions:
RESOLVED, That the Board of Trustees gratefully acknowledges the generouscontributions of the many friends of the University in support of endowments, funds, and othermajor commitments as reported to the Committee on Finance and Physical Plant at itsmeeting of November 6, 2009.
FURTHER BE IT RESOLVED, That the Officers of the University are authorized toconvey the Board's appreciation to these generous benefactors who provide opportunitiesfor many students to receive a quality education.
(Appendix I.1)
-1-
11/6/2009F&
PP
October 31, 2009Projects in 5-Year Capital Plan Bold - Completed, Italics - Projected
Budget Commonwealth Arch/Eng Design Plan Start Completion Campus Project Name Amount Funding Selection Approval Date Date
Altoona Misciagna Family Center for Performing Arts Addition $3,000,000 $0 01/05 01/09 03/09 12/09
$1,668.71ENGINEERING$183.26HEALTH & HUMAN DEV$183.26HEALTH & HUMAN DEV$195.00HEALTH & HUMAN DEV$211.19HEALTH & HUMAN DEV$297.00HEALTH & HUMAN DEV$540.90HEALTH & HUMAN DEV$770.50HEALTH & HUMAN DEV$337.70HEALTH & HUMAN DEV$716.95HEALTH & HUMAN DEV$337.12HEALTH & HUMAN DEV$196.16HEALTH & HUMAN DEV$556.58HEALTH & HUMAN DEV$234.15INFORMATION TECH SERVICES$325.00LIBERAL ARTS$187.50SCIENCE ‐ EBERLY COLLEGE
$1,509.32SCIENCE ‐ EBERLY COLLEGE$818.77SCIENCE ‐ EBERLY COLLEGE
$79.50AGRICULTURAL SCIENCES$433.00AGRICULTURAL SCIENCES$110.50AGRICULTURAL SCIENCES$275.53AGRICULTURAL SCIENCES$751.94ARTS AND ARCHITECTURE$173.00ARTS AND ARCHITECTURE$214.84ARTS AND ARCHITECTURE$70.95ARTS AND ARCHITECTURE
$107.42ARTS AND ARCHITECTURE$456.39ARTS AND ARCHITECTURE$28.50ARTS AND ARCHITECTURE$82.90ARTS AND ARCHITECTURE
$1,115.99BUSINESS ‐ SMEAL COLLEGE$441.03BUSINESS ‐ SMEAL COLLEGE$494.53BUSINESS ‐ SMEAL COLLEGE$865.53BUSINESS ‐ SMEAL COLLEGE$163.00BUSINESS ‐ SMEAL COLLEGE$675.51CENT FINANCE & BUSINESS$402.67COMMUNICATIONS$395.01COMMUNICATIONS$180.36COMMUNICATIONS$941.07COMMUNICATIONS$32.62DEV AND ALUMNI RELATIONS$41.20DEV AND ALUMNI RELATIONS$43.10DEV AND ALUMNI RELATIONS
$187.58DEV AND ALUMNI RELATIONS$628.65DEV AND ALUMNI RELATIONS$73.00DEV AND ALUMNI RELATIONS
$632.25DEV AND ALUMNI RELATIONS$36.00DEV AND ALUMNI RELATIONS$70.25DEV AND ALUMNI RELATIONS$36.25DEV AND ALUMNI RELATIONS$95.00DEV AND ALUMNI RELATIONS
$100.51DEV AND ALUMNI RELATIONS$670.34DICKINSON SCHOOL OF LAW$497.11DICKINSON SCHOOL OF LAW
11/6/2009 F&PP
(Appendix I.2) 2
$345.51DICKINSON SCHOOL OF LAW$566.95DICKINSON SCHOOL OF LAW$100.92EARTH & MINERAL SCIENCES$331.00EARTH & MINERAL SCIENCES$804.90EDUCATION$232.84EDUCATION$387.00ENGINEERING$264.86ENGINEERING$234.82ENGINEERING$262.50ENGINEERING$500.00ENGINEERING$285.56ENGINEERING$300.00ENGINEERING$329.75ENGINEERING$393.75ENGINEERING$307.41ENGINEERING$360.50ENGINEERING$178.50ENGINEERING$345.50ENGINEERING$580.50ENGINEERING$415.36ENGINEERING$101.25HEALTH & HUMAN DEV$333.00HEALTH & HUMAN DEV$528.00HEALTH & HUMAN DEV$621.27INFORMATION TECH SERVICES
$1,386.80INFORMATION TECH SERVICES$313.75INFORMATION TECH SERVICES$651.90INFORMATION TECH SERVICES$484.00INTERNATL AFFAIRS‐SCHOOL$48.36LIBERAL ARTS
$595.00LIBERAL ARTS$32.75LIBERAL ARTS
$316.76LIBERAL ARTS$144.02OFFICE OF THE PRESIDENT$254.81SCIENCE ‐ EBERLY COLLEGE
$2,039.40OFFICE OF HUMAN RESOURCES$6,108.30OFFICE OF HUMAN RESOURCES$6,652.80OFFICE OF HUMAN RESOURCES$5,900.40OFFICE OF HUMAN RESOURCES$7,741.80OFFICE OF HUMAN RESOURCES$6,900.30OFFICE OF HUMAN RESOURCES$3,890.70OFFICE OF HUMAN RESOURCES
MARY G. BEAHM $39,233.70TOTAL
STOR ALL SELF STORAGE
$2,652.00AGRICULTURAL SCIENCES$918.00DICKINSON SCHOOL OF LAW
$1,806.24EARTH & MINERAL SCIENCES$876.00HEALTH & HUMAN DEV
$3,240.00MATERIALS RESEARCH INSTITUTE$123.00MATERIALS RESEARCH INSTITUTE$123.00MATERIALS RESEARCH INSTITUTE$123.00MATERIALS RESEARCH INSTITUTE$103.00MATERIALS RESEARCH INSTITUTE$123.00MATERIALS RESEARCH INSTITUTE$127.00MATERIALS RESEARCH INSTITUTE$127.00MATERIALS RESEARCH INSTITUTE$336.00STUDENT AFFAIRS$480.20STUDENT AFFAIRS$83.00STUDENT AFFAIRS$83.00STUDENT AFFAIRS$83.00STUDENT AFFAIRS$83.00STUDENT AFFAIRS$83.00STUDENT AFFAIRS$83.00STUDENT AFFAIRS$83.00STUDENT AFFAIRS
$9,124.32RESEARCH ‐ CENTER FOR DIELECTRIC STUDIES$345.03RESEARCH ‐ CENTER FOR DIELECTRIC STUDIES$130.68SCIENCE ‐ EBERLY COLLEGE$108.49UNDERGRADUATE EDUCATION$71.60UNDERGRADUATE EDUCATION
The 2010-2011 financial plan for Housing and Food Services requires a modest increase in student room and board rates in order to continue to provide quality services for students and maintain and improve the residential and dining facilities. As noted in previous rate requests, the need to address the deferred maintenance of our aging buildings remains a high priority for the program. Projects such as the upgrade of electrical wiring, the renovation of bathrooms, and the replacement of elevators and windows are essential for safe, comfortable, efficient and attractive housing and dining facilities. All of these are multi-year initiatives requiring significant financial commitment. Recently completed projects, all financed from the provision for deferred maintenance, include the conversion of Beam Hall from office and academic space into residence hall suites and the conversion of McElwain dining commons into living space. New projects for Fall 2010 are the renovation of Dobbins, the dining commons at Penn State Erie, and the construction of 100 new spaces for freshmen housing at Penn State Harrisburg. At University Park, plans are under review to convert Simmons dining commons into residential space, as was done for McElwain a year ago. This project will produce 70 new bed spaces. In addition, the Pollock dining commons will undergo a major renovation beginning Spring Semester of 2011.
11/6/2009 F&PP
(Appendix II) -5-
Expenses Food Costs Food costs for 2010-2011 are expected to increase by 2.0 percent. This includes the additional increase of providing meal plans for the new students at Harrisburg. Salaries, Wages, and Employee Benefits Monies are included for anticipated inflationary increases for staff and technical service employees.
Utilities Utility rates are estimated to remain at their current levels, and no increase to the current provision is anticipated. A significant savings is realized in residence hall telephone expense with the removal of most of the landlines from the residence halls. Student surveys indicated minimal usage of traditional phones by students, given the widespread use of cell phones. Disconnecting the landlines is estimated to save $700,000 per year. Other Operating Expenses Increases are planned for maintenance (2.5 percent), supplies (2.8 percent), and services (3.3 percent).
Residence Life The Office of Residence Life is requesting that the counseling fee be increased by 1.9 percent, from $256.50 to $261.50 per student per semester. This increase will generate an additional $268,784 to compensate for increases in operating costs, anticipated salary and employee benefit increases, and room and board for resident assistants at all campuses.
11/6/2009 F&PP
(Appendix II) -6-
Overhead Expenses Housing and Food Services Administration and Support Services Administration and support services are provided with an allocation of $1,945,000.
University Overhead The budget provides $5,281,000 for university administrative costs.
Property Expenses Debt Service The annual debt service for 2010-2011 will total $29,492,000, an increase of $1,047,300 and represents the continuation of the Housing and Food Services strategic facilities plan. New projects requiring debt service are the Dobbins renovation at Penn State Erie and the additional housing constructed at Harrisburg. Facility Renewal and Deferred Maintenance Each year aging residence halls and dining commons require more funds for major maintenance which includes roof replacement, elevator repair, heating, plumbing, electrical repairs, and technology upgrades. The budget provides $22,297,000 for facility renewal and deferred maintenance for our buildings. Income Meal Plan 3 provides about twelve to thirteen meals per week and most closely approximates the average board plan selected. A student living in a standard double room who selects Meal Plan 3 will pay 2.45 percent more for room and board in 2010-2011. The recommended rate increases for housing, food services and conferences at Penn State University Park and the campuses will generate the required $4,882,100 in additional income.
MONTHLY RENTAL RATE COMPARISON UNIVERSITY MANOR vs. PRIVATE APARTMENT COMPLEXES The rental rates that follow are the proposed University Manor rental rates as compared to the current rates for private apartment complexes in the Hershey area. The average private rental rate has been adjusted to include utility expenses where none previously existed in the rental rate. This then provides an “apples-to-apples” rate comparison. The average difference between the proposed University Manor rates and the current private apartment rates are: DIFFERENCES BETWEEN UNIVERSITY MANOR AND PRIVATE APARTMENT RENTAL RATES
Average University Manor Private Rates Proposed Rates Difference
1 Bedroom $ 875 $ 840 $ 35 2 Bedroom $1,042 $ 992 $ 50 3 Bedroom $1,250 $1,084 $ 166 All University Manor Apartments have air-conditioning, modern kitchen appliances, wall-to-wall carpeting, draperies/mini-blinds, and washers/dryers. All utilities are included except Cable TV and long-distance telephone service. Additionally, high-speed Internet service is provided in all University Manor East apartments. Sprinklers have been installed in all University Manor East apartments.
C O N T E N T S
STANDING ORDERS OF THE BOARD OF TRUSTEES
ORDER I. Special Committees and Subcommittees . . . . . . . . . . . . . . . . . . . . S-1
ORDER I. THE FOLLOWING SPECIAL COMMITTEES AND SUBCOMMITTEES AREHEREBY ESTABLISHED:
(1) Nominating Committee. The President of the Board, after consultation with the
President of the University, is authorized to appoint a nominating committeecomposed of three members to recommend to the Board candidates forelection to membership on the Executive Committee and to recommendcandidates for the rank of trustee emeritus in accordance with establishedguidelines.
(2) Subcommittee on Architect/Engineer Selection (of the Committee on Financeand Physical Plant).(a) This subcommittee will be composed of three members of the
Committee on Finance and Physical Plant.(b) When it becomes necessary for the Board to appoint an executive
architect or engineer for University physical plant projects, Universitystaff will prepare a list of not less than three nor more than five firms forconsideration by the subcommittee.
(c) The qualifications of these firms to perform this particular professionalactivity as well as background information regarding the type of firm andprevious professional work will be presented to the subcommittee.
(d) Based on this information, and upon any recommendation that may beforthcoming from a program committee, and any additional informationthe subcommittee may request, the subcommittee, after discussion withthe staff, will recommend to the Committee on Finance and PhysicalPlant the firm that they recommend the Board should appoint.
(3) Subcommittee on Audit (of the Committee on Finance and Physical Plant).(a) This subcommittee will be composed of four members of the Committee
on Finance and Physical Plant. (b) This subcommittee shall be responsible for reviewing on a regular basis
the performance and determinations of the auditing firm and informingthe Committee on Finance and Physical Plant regarding relevantfinancial oversight matters.
(4) Subcommittee on Finance (of the Committee on Finance and Physical Plant).(a) This subcommittee will be composed of three members of the
Committee on Finance and Physical Plant. (b) This subcommittee shall be responsible for reviewing on a regular basis
certain of the University's material financial matters, including theoperating and capital budgets, balance sheet management and debtstrategy, and informing the Committee on Finance and Physical Plantregarding relevant financial oversight matters.
ORDER II. SPECIAL ASSIGNMENTS
(1) Trustee Representative at All Commencements. The Board of Trustees shallbe represented at all Commencements by the President of the Board or bytrustees designated by the President of the Board.
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(2) Trustee Representative at Meetings of the Executive Board of the AlumniAssociation. On recommendation of the Executive Board of the AlumniAssociation, the President of the Board is authorized to appoint a trustee toattend all official meetings of the Executive Board of the Alumni Association.
(3) Trustee Liaison to Capital Campaigns. The President of the Board is directedto appoint a liaison trustee to interact with developmental activities for capitalcampaigns and to apprise the Board of Trustees of the activities and theprogress of campaigns.
ORDER III. ATTENDANCE
(1) Regular attendance at meetings by members of the Board is expected. If anappointive or elective member of the Board is unable to attend at least four ofthe six scheduled meetings each year, such Board member should discusswith the President of the Board the question of his/her ability to continueattendance appropriate to a trustee.
ORDER IV. MATTERS REQUIRING APPROVAL OF THE BOARD OF TRUSTEES
(1) Basic University Organization and Policy (a) All matters pertaining to the Corporate Charter and Bylaws. (b) All reports of standing or special committees of the University's Board
of Trustees. (c) All major modifications of educational policy. (d) Authorization to grant degrees to graduates. (e) University intellectual property policy.
(2) Fiscal Matters (a) Establishment of, or changes in existing, major University fiscal policies.
(b) Annual budgets and changes in the approved totals, state appropriationrequests, and appropriation of building funds unappropriated.
(c) Acceptance of gifts, bequests, grants, fellowships, scholarships, loanfunds that are not in accord with established policy.
(d) Establishment of, or changes in, fees including tuition, room and board.(e) Authorization to borrow money; authorization of persons to sign checks,
contracts, legal documents, and other obligations, and to endorse, sell,or assign securities.
(f) Selection of firm to make annual audit of University accounts. (g) Purchase or sale of University property, with the exception of the sale of
property up to $3 million in value gifted to the University for the expresspurpose of sale with proceeds benefitting the University.
(3) Personnel Matters(a) The establishment of senior administrative positions responsible directly
to the President and the determination of the functions of such positionsshall be made by the President of the University. The appointment toand removal of senior administrative officers in these positions shall bemade by the President of the University, subject to the approval of theBoard of Trustees. All other administrative officers with the title of vicepresident or dean shall be appointed by the President, subject to theapproval of the Board of Trustees. Removal of such administrativeofficers with the title of vice president or dean shall be made by the
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President and, in such event, the President shall inform the Board ofTrustees of such removal at the next regular meeting of the Board.
(4) Physical Plant (a) Establishment of, or changes in existing policies, on matters such as
selection of architects, naming of buildings and roads, preservation ofcampus landmarks.
(b) Long-range planning for physical development, including location andconstruction of buildings, utilities, and recreation areas, and any sites invariance with the accepted master plan.
(c) Approval of land and other real estate to be considered for purchase orsale, with the exception of the sale of land and other real estate up to$3 million in value gifted to the University for the express purpose of salewith proceeds benefitting the University.
(d) Approval of specific names for individual buildings and roads. (e) Design plans for buildings and facilities to be constructed, with the
exception of temporary buildings or buildings under $2 million in cost.Review and approval may be requested by the administration in lieu ofpresentation as an information item for projects of a special nature thatfall below the $2 million level.
(f) Approval to award contracts for construction; provided, however, that theOfficers of the University shall have the discretion to expend up to anadditional 10 percent of the authorized construction cost, as necessary.
(g) Appointment of architect for construction of major projects.
(5) Miscellaneous (a) Selection of the recipients of Distinguished Alumni Awards, honorary
degrees, and the Penn State Medal. (b) Selection of specific dates for trustee meetings.
ORDER V. MATTERS TO BE PRESENTED TO THE BOARD OF TRUSTEES FORINFORMATION
(1) Basic University Organization and Policy (a) New curricula and major changes in existing curricula. (b) Major policy matters affecting student welfare and activities. (c) Major policy matters affecting research.
(2) Fiscal Matters Financial statements, and gifts, bequests, grants, fellowships, scholarships,loan funds that are in accord with established policy.
(3) Personnel Matters (a) Policies. New policies or changes in existing policies governing
appointments, promotions in academic rank, leaves of absence,resignations, retirements, academic freedom and tenure, hours andconditions of employment, and fringe benefits.
(4) Physical Plant(a) Projects with a cost between $1,000,000 and $1,999,999.(b) Naming of rooms, portions of buildings, and plazas.(c) Proceeds from the sale of land and other real estate gifted to the
University for the express purpose of sale.
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ORDER VI. PROCEDURES FOR THE ELECTION OF TRUSTEES BY ALUMNI(see also the Charter)
(1) Qualifications of Candidates for Trustee. See Art. 2 of the Corporate Bylaws.
(2) Date of Election. Elections for alumni members of the Board shall be heldeach year on the day preceding the annual Commencement, under thedirection of two judges annually appointed for that purpose by the President orActing President of the Board, and may be held either in connection with theDelegate Convention for the election of other members of the Board, or at suchother hour of the same day, and such other place, as the Board may from timeto time direct.
(3) Nominations. The Secretary of the Board of Trustees, or such other officer asmay be from time to time designated by said Board, shall send to eachqualified elector (see Charter provision) whose address is known a noticestating the date at which the next election will be held and the names of alumnitrustees whose terms will expire by law on the thirtieth day of June nextfollowing. Such notice shall be sent each year not less than ninety dayspreceding the date on which such election is to be held, and shall invitenominations for vacancies then to occur. All persons who are nominated byas many as fifty electors shall be announced as soon as practical after thetenth day of April each year in a circular sent to all electors, with a form ofballot.
(4) Correction of Mailing List. The Office of the President is instructed to providefor correction of the mailing list.
(5) Form of Ballot. Only the official nominating and voting ballots may be used tonominate and vote for candidates.
(6) Position on Ballot. Immediately after the last day fixed for depositing ballotsto nominate candidates for alumni trustee, the President of the Board ofTrustees shall fix a day and hour for casting lots for the position of names uponthe election ballots. The Secretary of the Board of Trustees shall give at leastthree days' notice by mail of said date and hour to all candidates nominated.Any candidate may appear in person or by a representative duly authorized inwriting. In the event that any candidate is not present in person or by dulyauthorized representative at the time of casting of lots, it shall be the duty ofthe Secretary to appoint some person to represent such absentee. After saidlots are cast, the Secretary shall accordingly establish the order in which thenames of said candidates are to appear on the election ballot.
(7) Designation of Incumbents. The asterisk identifying incumbents shall beeliminated from election ballots, but the booklets of biographical sketches shallcontinue to identify incumbents with an asterisk.
(8) Position in Booklet of Biographical Sketches. Candidates' names shall be inalphabetical order in the booklet of biographical sketches.
(9) Duplicate Ballots. A duplicate ballot may be issued to a voter only on a writtenor personal application to the Secretary of the Board of Trustees stating thatthe original ballot has been lost, mutilated, or destroyed.
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(10) Deadline for Receipt of Nominations. Ballots for the nomination of alumnitrustees must be received at the office of the Secretary of the Board ofTrustees before 5:00 p.m., February 25.
(11) Candidate May Withdraw Name. Each candidate nominated shall be given theprivilege of withdrawing his/her name.
(12) Election Returns. All ballots for alumni trustees returned to the proper officialin response to said circular and received by him/her on or before the day ofelection shall be safely kept by him/her, and by him/her delivered at the timeand place of election to the two judges named in the charter and shall by thembe counted as cast at that time and place. Said judges shall make return tothe Board of Trustees of the persons for whom ballots have been cast, eitherby letter or by electors in person, with the number of votes for each person;and the Board of Trustees shall thereupon determine and declare whatpersons have been elected to fill the vacancies aforesaid. A plurality of votesonly shall be required to elect and, in case of an equality of votes between twoor more candidates, the person or persons who shall hold said office or officesof trustee shall be designated by ballot of the Board of Trustees.
(13) Announcement of Results. The names of the winning candidates in theelection shall be given publicity in the public press (and no reference shall bemade to the other candidates for the three offices). The names of allcandidates and the number of votes received by each shall be reported to theAlumni Association for publication in The Penn Stater only.
ORDER VII. SELECTION GROUP ON BOARD MEMBERSHIP FOR BUSINESS ANDINDUSTRY TRUSTEES (see also the Charter)
The Selection Group on Board Membership for Business and Industry Trusteesshall be composed of five members (three seated or emeriti trustees representingbusiness and industry endeavors excepting those standing for reelection; and twotrustees from among those elected by the alumni, elected by agriculturalassociations, or appointed by the governor.) The selection group shall be appointedannually by the President of the Board for the purpose of recommending twocandidates for membership on the Board of Trustees representing business andindustry endeavors. The names and qualifications of the candidates shall besubmitted for confirmation by the Board of Trustees (approval or rejection ofrecommended candidates only).
ORDER VIII. RULES AND REGULATIONS FOR THE CONDUCT OF PUBLIC MEETINGS OFTHE BOARD OF TRUSTEES, ITS STANDING COMMITTEES AND ITS SPECIALCOMMITTEES
(1) Meetings Open to the Public. A meeting of the Board of Trustees, itsExecutive Committee, its Standing Committees, and its Special Committeesshall be open to the public, except as provided in paragraph (13) hereof. Theterm "meeting" means any prearranged gathering which is attended orparticipated in by a quorum and held for the purpose of deliberating Universitybusiness or taking official action. The term "University business" means theframing, preparation, making or enactment of policy or regulations, the creationof liability by contract or otherwise, or the adjudication of rights, duties andresponsibilities, but not including administrative action. The term"administrative action" means the execution of policies relating to persons or
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things previously authorized or required by official action adopted at an openmeeting of the Board of Trustees. The term "administrative action" does notinclude the deliberation of University business. The phrase "deliberatingUniversity business" shall mean the discussion of University business held forthe purpose of making a decision. The phrase "official action" means (1) themaking of a recommendation pursuant to statute, ordinance or executive order,(2) the establishment of policy, (3) the making of a decision on Universitybusiness or (4) the vote taken on any motion, proposal, resolution, rule,regulation, ordinance, report or order.
(2) Annual Public Notice of All Meetings. Public notice of the date, time, and placeof all regularly scheduled meetings of the Board of Trustees, its ExecutiveCommittee, its Standing Committees, and its Special Committees for thecalendar year shall be published annually in all daily newspapers of generalcirculation published in Centre County, and in at least one daily newspaper ofgeneral circulation in Pennsylvania. Such notice for meetings at locationsother than University Park shall be published in a daily newspaper of generalcirculation in the political subdivision in which such meetings are to be held.
(3) Public Notice of Individual Meetings. Public notice of the date, time, and placeof each regular meeting shall be given and published in the daily newspapersof general circulation as indicated above, at least three days prior to the timeof each regularly scheduled meeting, and at least twenty-four hours prior to thetime of the meeting in the case of special or rescheduled meetings. Thisprovision shall not apply in case of a meeting called to deal with an emergencyinvolving a clear and present danger to life or property.
(4) Posting of Notices. Public notice of all meetings of the Board of Trustees, itsExecutive Committee, its Standing Committees, and its Special Committeesshall be posted at the offices of the Secretary of the Board of Trustees atUniversity Park, Pennsylvania.
(5) News Media Notices. Notice of the date, time, and place of meetings shall befurnished on request to any newspaper publishing in the political subdivisionin which the meeting will be held and to any radio and television station whichregularly broadcasts into the political subdivision (Centre County in the caseof meetings at University Park).
(6) Notice to Others. Notice of meetings shall also be furnished to anyoneproviding a stamped, self-addressed envelope prior to the meeting.
(7) Meeting Room. Meetings of the Board of Trustees, its Executive Committee,its Standing Committees, and its Special Committees shall be held in a roomlarge enough to accommodate the members of the Board of Trustees, officersof the University, and invited guests. Space shall also be available for up totwenty-five visitors, including representatives of the news media, on a first-come, first-served basis. The room will be opened one-half hour prior to thestarting time of the meeting.
(8) Arrangements for News Media Area and Press Conferences. An area in themeeting room shall be designated by the University for use by the press andother news media, subject to such rules and regulations as the University mayadopt. To further facilitate communications between the Board and the public,
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the President of the Board and/or the President of the University shall holdpress conferences as necessary following meetings of the Board of Trustees.
(9) Visitors to the Meetings. Visitors to the meetings, including representatives ofthe news media, shall be present as observers, and not as participants. Anyform of participation including speaking, the presentation of petitions, and thedisplay of banners, posters, and other forms of signs is prohibited. This ruledoes not apply to guests invited by the President of the Board or the Presidentof the University.
(a) The President of the Board or the President of the University shall beauthorized to invite one student and one faculty member to participatein the discussion of agenda items at meetings of the Board of Trusteesunder existing Rules and Regulations.
(b) Three non-voting faculty representatives and three non-voting studentrepresentatives may be invited to attend and participate in the meetingsof standing committees and of special committees, except executivesessions of the committees. The faculty and student representativesshall be selected by the President of the University in such manner ashe/she deems appropriate.
(10) Photographic and Recording Equipment. Visitors to the meeting, includingrepresentatives of the news media, shall be allowed to use battery-operatedaudio tape recorders, television cameras and photographic equipment subjectto the following regulations:
(a) A designated area in the meeting room shall be used by all visitors tothe meeting using television cameras or photographic equipment.
(b) Television cameras and related equipment shall be allowed entry intothe meeting room for set up purposes during the one-half hour periodprior to the starting time of the morning and afternoon meetings.Television cameras and related equipment shall not be allowed entryinto the meeting room after the starting time of the meeting, exceptduring the course of a meeting recess, in which event entry will bepermitted.
(c) Television cameras and photographic equipment shall be required touse available light during the meeting. Artificial lighting and flashes shallnot be used during the meeting.
(d) No voice-over broadcasting shall be permitted during the meeting.
(11) Procedures for Committee Meetings and Board Meetings. In conducting thebusiness of the Board of Trustees, its Standing Committees, and its SpecialCommittees, the procedures for the meetings of the Standing Committees andthe Special Committees shall provide for full discussion of both information andaction items. Following discussion of action items, Standing Committees willvote to recommend an action to the Board of Trustees. Special committeesrecommend action to Standing Committees. The Board of Trustees meetingwill be devoted primarily to (a) taking formal action on committeerecommendations as a block, with Board members having the opportunity toraise questions concerning any of the recommended action items and to callfor a separate vote on a given item; (b) considering and acting upon matterswhich have not come to the Board through a Standing Committee; and (c)receiving the report of the President of the University. The vote of eachmember of the Board or of a committee on any resolution, rule, order,regulation, ordinance or the setting of official policy must be publicly cast and,in the case of a roll call vote, recorded.
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(12) Agenda for the Meetings. The agenda and supporting material for themeetings of the Board of Trustees, its Executive Committee, its StandingCommittees, and its Special Committees shall be available to the public at thetime of the meetings. In addition to making available to the public at the timeof the meeting the agenda and supporting material, the University will makeavailable five days in advance of the meeting an agenda of items to beconsidered with a note that the agenda of items is subject to change withoutnotice prior to the meeting.
(13) Executive Sessions of the Board of Trustees. The Board of Trustees, itsExecutive Committee, its Standing Committees, and its Special Committeesmay hold an executive session for one or more of the following reasons:
(a) To discuss any matter involving the employment, appointment,termination of employment, terms and conditions of employment,evaluation of performance, promotion or disciplining of any specificprospective officer or employee or current officer or employee employedor appointed by the University, or former officer or employee, provided,however, that the individual employees or appointees whose rights couldbe adversely affected may request, in writing, that the matter or mattersbe discussed at an open meeting.
(b) To hold information, strategy and negotiation sessions related to thenegotiation or arbitration of a collective bargaining agreement or, in theabsence of a collective bargaining unit, related to labor relations andarbitration.
(c) To consider the purchase or lease of real property up to the time anoption to purchase or lease the real property is obtained or up to thetime an agreement to purchase or lease such property is obtained if theagreement is obtained directly without an option.
(d) To consult with its attorney or other professional advisor regardinginformation or strategy in connection with litigation or with issues onwhich identifiable complaints are expected to be filed.
(e) To review and discuss University business which if conducted in publicwould violate a lawful privilege or lead to the disclosure of information orconfidentiality protected by law, including matters related to the initiationand conduct of investigations of possible or certain violations of the lawand quasi-judicial deliberations.
(f) To discuss matters of academic admission or standings.
The executive session may be held during an open meeting, at the conclusionof an open meeting, or may be announced for a future time. The reason forholding the executive session must be announced at the open meetingoccurring immediately prior or subsequent to the executive session. If theexecutive session is not announced for a future specific time, members of theBoard of Trustees shall be notified 24 hours in advance of the time of theconvening of the meeting specifying the date, time, location and purpose of theexecutive session. Official action on discussions held in executive sessionshall be taken at an open meeting. An executive session may be called by thePresident of the Board of Trustees or the President of the University, or, in theabsence of the President of the Board of Trustees, the Vice President of theBoard. A majority of the members present and voting may determine toadjourn and direct that notice of a public meeting at a subsequent time begiven, rather than proceed in executive session.
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(14) Maintaining Order. The presiding officer at public meetings of the Board ofTrustees, its Executive Committee, its Standing Committees, and its SpecialCommittees shall have the authority to maintain order during the publicmeeting. Any person who, in the opinion of the presiding officer, prevents,disturbs, or interrupts a public meeting may be requested to leave the publicmeeting, and, upon failure to comply, may be subject to forcible removal and/orarrest for violation of the Penal Code of Pennsylvania.
(15) Minutes of Public Meetings. The minutes of public meetings of the Board ofTrustees, its Executive Committee, its Standing Committees, and its SpecialCommittees shall be available for inspection and copying during regularbusiness hours at the office of the Secretary of the Board of Trustees. A copyof minutes of public meetings shall be available to a member of the public uponpayment of the reasonable cost of reproduction.
(16) Revisions in the Rules and Regulations for Public Meetings. The Board ofTrustees will periodically review the Rules and Regulations for the Conduct ofPublic Meetings and make such revisions as experience indicates areappropriate and desirable.
ORDER IX. GOVERNANCE OF THE UNIVERSITY
(1) Role of the Board of Trustees in University Governance(a) Authority of the Board of Trustees. The Board of Trustees of The
Pennsylvania State University is the corporate body established by thecharter with complete responsibility for the government and welfare ofthe University and all the interests pertaining thereto including students,faculty, staff, and alumni.
(b) Guiding Policies. In the exercise of this responsibility, the Board shallbe guided by the following policies:1. Delegation of authority. The authority for day-to-day management
and control of the University, and the establishment of policiesand procedures for the educational program and other operationsof the University, is delegated to the President, and by him/hereither by delegation to or consultation with the faculty and thestudent body in accordance with a general directive of the Board.
2. Reports and information required. This delegation of authorityrequires that the Board rely on the judgment and decisions ofthose who operate under its authority. However, this reliance ofthe Board must be based upon its continuing awareness of theoperations of the University. Therefore, the Board shall receiveand consider thorough and forthright reports on the affairs of theUniversity by the President or those designated by the President.It has a continuing obligation to require information or answers onany University matter with which it is concerned.
3. Advisor to the President. It is the duty of the Board to advise thePresident on any University matter.
(c) Responsibilities of the Board of Trustees. The Board of Trustees shallcarry out certain responsibilities as a Board, without delegation. Theseresponsibilities are:1. The selection, support, compensation, and evaluation of the
President of the University. This responsibility includes acommitment to grant the President broad delegated authority, to
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support the President in his/her exercise of such authority, tojudge the performance of the President, and if necessary, toremove the President. In the selection of a President, the Boardshall consult with representatives of the faculty and the studentbody.
2. The determination of the major goals of the University and theapproval of the policies and procedures for implementation of suchgoals. The determination of the major goals of the University shallinclude the establishment and review of long-range plans for theeducational, financial, and physical development of the University.
3. The review and approval of the operating and capital budget of theUniversity.
4. Such other responsibilities as law, governmental directives, orcustom require the Board to act upon. Among these are included:a. Amend the Charter and Bylawsb. Buy and sell real estate, with the exception of the sale of
real estate of up to $3 million in value gifted to theUniversity for the express purpose of sale with proceedsbenefitting the University
c. Borrow moneyd. Transfer trust assetse. Transfer securitiesf. Authorization to receive certain government grantsg. Establish appropriate investment policies and exercise
prudent oversight of the University's endowment, finances,and other tangible assets
h. Ensure an independent audit of the University's financesi. Review and continuously improve the Board's performanceIt is recognized that the performance of some of theseresponsibilities does involve the Board to some extent in the day-to-day operations of the University. Whenever possible, the Boardshall devote its major time and consideration to its broaderresponsibilities for the welfare of the University.
(d) Responsibility to Inform the Citizens of Pennsylvania. The Board ofTrustees shall inform the citizens of the Commonwealth of Pennsylvaniaof the University's performance of its role in the education of the youthof Pennsylvania.
(e) Responsibility for Development of Effective Relationships. The Board ofTrustees shall assist the President in the development of effectiverelationships between the University and the various agencies of theCommonwealth of Pennsylvania and the United States of America whichprovide to the University assistance and direction.
(f) Expectations of Membership. In exercising the responsibilities oftrusteeship, the Board of Trustees is guided by the expectations ofmembership, each of which is equally important:1. Understand and support the University's mission, vision, and
values2. Act in good faith at all times and in the best interests of the
University in a non-partisan manner3. Make the University a top philanthropic priority to the very best of
one's personal ability4. Prepare diligently, attend faithfully, and participate constructively
in all Board meetings and related activities by reading the agendaand supporting materials
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5. Speak openly within the Board and publicly support decisionsreached by the Board
6. Make decisions and instruct the administration as a Board, not asindividuals
7. Participate regularly in events that are integral parts of the life ofthe University community
8. Disclose promptly and fully any potential or actual conflicts ofinterest, and personally maintain exemplary ethical standards
9. Refrain from requests of the president or staff for specialconsideration or personal prerogatives, including admissions,employment, and contracts for business
10. Maintain confidentiality without exception11. Advocate the University's interests, but speak for the Board or the
University only when authorized to do so by the Board or the Chair12. Respect established channels to acquire information or open
communication with constituents13. Extend goodwill to one another and to all members of the
University community.(g) Final Responsibility of the Board. The Board of Trustees is the final
repository of all legal responsibility and authority to govern the University,under the Corporation Code of Pennsylvania. It can delegate but itcannot abandon this responsibility and authority. The Board has theresponsibility and duty to direct all organizations and personsparticipating in governing the University, whether such participation bein the establishment of policies, rules, and regulations, or in theadministration of such policies, rules, and regulations. In order toperform this responsibility and duty, and consistent with the Charter, theBoard of Trustees hereby directs that governing of the Universityhenceforth be conducted in accordance with the following general planof organization.
(2) Internal Governance(a) What Internal Governance Is Concerned With. This plan of organization
concerns only the internal governance of the University. It is notconcerned with the operation of the Board of Trustees, with the functionsof the officers of the corporation, or with the establishment of financialpolicy and fiscal and budgetary controls, which matters are theresponsibility of the Board of Trustees, the President, and the Treasurerin accordance with established policy.
(b) Who Performed By. The internal governance of the University shall beperformed by the President and his/her administration, by the faculty,and by the student body in accordance with the delegations of authorityand advisory roles hereinafter set forth.
(3) Role of the President in University Governance(a) Chief Executive Officer. The Board of Trustees hereby directs that the
President of the University, subject to the revisions and orders of theBoard, shall be chief executive officer of the University, consistent withsuch orders of the Board. He/she shall be responsible only to the Boardand shall report to the Board.
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(b) Duties as Chief Executive Officer. The President, as chief administrativeofficer, shall carry out all orders and directives of the Board of Trusteesand shall administer all policies of the Board. The President shall alsoadminister all policies established by him/her and by the faculty. ThePresident may delegate such administrative authority as he/she deemsappropriate to his/her staff, to the Treasurer, to the deans of the variousadministrative units, and to others, who shall exercise such delegatedauthority in the name of the President.
(c) Responsibility for Senior Administrative Positions. The establishment ofsenior administrative positions responsible directly to the President andthe determination of the functions of such positions shall be made by thePresident of the University. The appointment to and removal of senioradministrative officers in these positions shall be made by the Presidentof the University, subject to the approval of the Board of Trustees. Allother administrative officers with the title of vice president or dean shallbe appointed by the President, subject to the approval of the Board ofTrustees. Removal of such administrative officers with the title of vicepresident or dean shall be made by the President and, in such event, thePresident shall inform the Board of Trustees of such removal at the nextregular meeting of the Board.
(d) Duties as Chief Policy Officer. The President, as chief policy officer,shall have final authority, subject to the revisions and orders of theBoard, to establish policy concerning educational policy and planning,student affairs, the instructional program, courses and curricula,personnel, admissions, graduation requirements, scholarships andhonors, calendar requirements, business, planning, research, andfinance.
(e) Delegation to the Faculty. Provided, however, the President shalldelegate to the faculty, as appropriately organized, subject to therevisions and orders of the President, the authority to establish policyconcerning the approval and supervision of the instructional program,including courses and curricula, academic admission standards,graduation requirements, and scholarships and honors.
(f) Consultation with the Faculty. The President shall consult with thefaculty, as appropriately organized, in the establishment of policyconcerning educational policy and planning, including generaladmissions policy, calendar, academic personnel, student affairs, andany other matter he/she shall deem appropriate.
(g) Consultation with Student Body on Student Affairs. The President shallconsult with the student body, as appropriately organized, in the area ofstudent affairs.
(4) Faculty(a) Responsibilities. The faculty, as appropriately organized, pursuant to
delegation from the President, and subject to the revisions and orders ofthe President, shall establish policy concerning the approval andsupervision of the instructional programs including courses and curricula,academic admissions standards, graduation requirements, andscholarships and honors.
(b) Consultation by the President. The faculty shall be consulted by thePresident concerning student affairs, educational policy and planning,academic personnel, and any other matter upon the request of thePresident.
(c) Communication with the Board. Official faculty communication to theBoard of Trustees shall be made through the President.
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(5) Student Body(a) Consultation by the President. The student body shall be consulted by
the President concerning the establishment of policy for student affairs.(b) Communication with the Board. Official student communication to the
Board of Trustees shall be made through the President.(c) Participation in the Deliberations of the Faculty. Students may also
participate in an appropriate manner in the deliberations of the facultysubject to the revisions and orders of the President.
ORDER X. DELEGATION OF CORPORATE AUTHORITY
(1) Board of Trustees Delegation of Authority to Certain University AdministrativeOfficers. The President, Vice President, Secretary, Treasurer, AssistantTreasurer, Senior Vice President for Finance and Business, and CorporateController of this Corporation, or any one of such officers be and they arehereby fully authorized and empowered on behalf of the Corporation to executeand acknowledge all deeds, agreements and contracts, and to transfer andendorse, sell, assign, set over and deliver any and all shares of stock, bonds,debentures, notes, evidences of indebtedness or other securities now orhereafter standing in the name of or owned by this Corporation, and to make,execute, acknowledge, and deliver, under the corporate seal of thisCorporation, any and all written instruments necessary or proper to effectuatethe authority hereby conferred.
The Treasurer, or in the absence of the Treasurer, the Senior Vice Presidentfor Finance and Business, may delegate in writing to such employees of theCorporation as they may deem appropriate, the authority to execute andacknowledge on behalf of the University standardized agreements andcontracts for which those employees have administrative responsibility.
The Executive Director, Office of Investment Management, or in his absence,the Chief Investment Officer, is hereby fully authorized and empowered onbehalf of the Corporation to transfer and endorse, sell, assign, set over anddeliver any and all shares of stock, bonds, debentures, notes or other securitiesnow or hereafter standing in the name of or owned by this Corporation, and tomake, execute, acknowledge, and deliver, under the corporate seal of thisCorporation, any and all written instruments necessary or proper to effectuatethe authority hereby conferred.
The Associate Vice President for Finance and Business and Controller, or, inhis/her absence, the Associate Controller, be and they are hereby fullyauthorized and empowered on behalf of the Corporation to execute andacknowledge all agreements and contracts related to the affairs of the Collegeof Medicine.
The Associate Secretary and Assistant Secretary of this Corporation, or anyone of such officers, be and they are hereby fully authorized and empoweredon behalf of this Corporation to make, execute, acknowledge, and deliver,under the corporate seal of this Corporation, any and all written instrumentsnecessary or proper to effectuate the authority hereby conferred.
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ORDER XI. TRUSTEE EMERITUS
(1) Granting the Status of Trustee Emeritus to Former Members of the Board. Thestatus of Trustee Emeritus shall be reserved for any living former member ofthe Board of Trustees who has served as a board member for 12 years or morewith distinction. The President of the Board shall request the NominatingCommittee to review the service of a Trustee upon retirement. The committeemay recommend to the Board that emeritus status be awarded to the retiredtrustee. Criteria to be considered by the committee shall include offices held,attendance record, participation in the activities of the Board, length of service,or other significant contributions. A trustee emeritus shall have none of theobligations of membership on the Board of Trustees, but shall be entitled to allof the privileges except those of making motions, of voting and of holdingoffice. Any trustee having served 20 years on the effective date of thisresolution will be entitled to automatic trustee emeritus status in accordancewith the prior policy.
