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MINUTES OF MEETING

BOARD OF TRUSTEESVOLUME 245

July 10, 2009

A meeting of the Board of Trustees was held in Room 51 of the Conference Center, Penn State NewKensington, New Kensington, Pennsylvania, at 9:25 a.m. on July 10, 2009.

The following Trustees were present: Broadhurst (chairman), Garban (vice chairman), Alexander, Baldwin,Chaiken, Clemens, Hayes, Henning, Hetherington, Hintz, Huber, Hughes, Joyner, Junker, Lubert, Masser,Myers, Poprik, Riley, Shaffer, Spanier, Strumpf, and Surma.

Present by invitation were faculty representatives Hannan and Landa Pytel; student representatives Borsuk,Keirans, and Mendoza; Penn State New Kensington representatives Santimauro, Schmidt, and Smith; staffmembers Ammerman, Bowen, Crouter, Curley, DiEugenio, Dolbin, Erickson, Horvath, Kirsch, Mahon, Paz,Pell, Poole, Romano, Sims, Snider, and Stryker; presenters Han and Tombros; and Mr. Courtney of McQuaideBlasko.

Chairman Broadhurst welcomed former Trustee Robert D. Metzgar who would be considered for emeritusstatus later in the day. Chairman Broadhurst also welcomed the University Faculty Senate Officers JeanLanda Pytel and John Hannan; student representatives Gavin Keirans and Alfonso Mendoza; AcademicLeadership Chair Ann Crouter; and Penn State New Kensington representatives Dr. Kevin J.G. Snider,Chancellor, Bob Schmit, Chair of the Advisory Board; Ben Smith, president of the Student GovernmentAssociation; and Frank Santimauro, Chair of the Penn State New Kensington Faculty Senate.

It was voted to approve the minutes of the May 15, 2009 meetings of the Board of Trustees.

President's Report

Dr. Spanier's report is included in its entirety:

"Good morning. I want to begin by thanking Kevin Snider and his staff for hosting us thisweek. There are some wonderful things happening at Penn State New Kensington, and I’mdelighted that the Board has an opportunity for a first-hand look at this vibrant campus. I’llkeep my report brief, so Kevin will have ample time for his presentation.

"I’d like to begin by calling your attention to Priorities for Excellence, The Penn State StrategicPlan 2009-10 Through 2013-14 approved at the May Board of Trustees meeting. Copies ofthe executive summary have been provided to members of the Board today, and the entireplan will soon be available online. The University’s strategic planning process was led byProvost Rod Erickson, and involved faculty, staff, students, alumni and many of our Trustees.The dominant theme of the plan is finding ways to enable the University to continue on itstrajectory of excellence in an era of increasingly scarce resources. Thank you to everyonewho contributed to this important roadmap for the future.

"On June 25, Jim Broadhurst, Ted Junker and several other Trustees attended the dedicationof the Penn State Hershey Cancer Institute building. This 178,000-square-foot facility bringstogether cancer-related clinical and research operations and creates a new main hospitalentrance.

"The state-of-the-art facility marks the latest example in a national trend toward caring forpatients in an environment designed to speed diagnosis and treatment and enhance patientcomfort and convenience. This is an important addition to the Penn State Hershey MedicalCenter and a tremendous advancement for patient care in the region.

"June also was a period of notable progress for the H.O. Smith Botanic Gardens at TheArboretum at Penn State. The Gardens cover 33 acres and are already home to hundredsof plant species including annual and perennial flower beds, a Lotus Pool with lily pads, the'River and Valley' watershed sculpture, and the Overlook Pavilion. This September, we’replanning a special tour for the Trustees to showcase the Gardens.

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"This spring, Penn State was recognized as a world leader in research on alternative energy.Elsevier, the largest publisher of research journals, ranked 3,000 research institutions anduniversities worldwide for their expertise in green energy and environmental research. PennState ranked fifth in the world of top enterprises of any kind in research papers on alternativeenergy, and was first among all universities in the world. This is much-deserved recognitionfor our faculty and students working in these vitally important areas.

"One fuel cell expert who has brought much acclaim to Penn State is Bruce Logan. Loganis the Kappe Professor of Environmental Engineering, and yesterday was awarded the 2009National Water Research Institute’s Athalie Richardson Irvine Clarke Prize for excellence inwater research. Logan’s research has led to a microbial fuel cell that can be used totransform wastewater into safe, clean drinking water. Over 40 percent of the world’spopulation doesn’t have access to basic sanitation and clean drinking water, and Logan’sresearch offers a very promising solution.

"Solar energy is another area of expertise at Penn State, and there are numerous researchand service projects under way.

"RenewCrew, Penn State’s student chapter of the National Electrical Contractors Association,received an Outstanding Commitment Award in the area of Energy and Climate Change fromthe Clinton Global Initiative. The grant will help a team of Penn State undergraduates travelto Honduras in spring 2010 to install a solar electric system on a local nonprofit medical clinic.RenewCrew works through Penn State’s Center for Sustainability with faculty advisers DavidRiley from architectural engineering and Tim Wheeler from electrical engineering.

"Energy-related research is just one facet of the research under way at the Penn StateMaterials Research Institute. This Institute provides a platform for research at the interfaceof education, science and innovation, and it has been a locus of research funding at PennState. In 2008, more than 200 multidisciplinary awards totaling nearly $61 million werefunded; projects included fuel cells, solar energy, nanotechnology, sensor networks andresearch for a variety of military and civilian applications. I encourage you to look throughthe 2008 Research Report to get a better idea of the activities in this important area.

"The largest and most ambitious tornado study in history began this summer, as PaulMarkowski, associate professor of meteorology, Yvette Richardson, assistant professor ofmeteorology, and a team of 100 researchers and students set off to chase tornadoes throughnine Midwestern states. The project, called Vortex2, received about $10 million in fundingfrom the National Oceanic and Atmospheric Administration and National Science Foundation,and will continue through 2010.

"An international team of scientists, led by Penn State professor of biology Charles Fisher,returned to port in June after completing a research expedition to collect data about thecreatures that live under extreme conditions near deep-sea hydrothermal vents. Not only didthe researchers acquire valuable scientific information during their three-weeks in the SouthPacific Ocean, but they also brought 1,200 middle-school students along for the ride--via theWeb.

"The cruise was the culmination of a project that is part of an international, Web-basedscience education program funded by NASA and the National Science Foundation.

"There has been a lot of hype about iPhone applications that give you everything from wineselections to sports scores to games. While the Apps can be a lot of fun, Penn State doctoralstudent Samuel Sennott thought they could do much more. He is the co-developer of anapplication that allows communication-impaired children and adults to communicate. Thisconvenient application lets the user touch icons that voice basic comments or questions andhas been an enabling tool for those with Down syndrome, cerebral palsy, autism and strokepatients who have lost their ability to speak.

"One notable early-career recognition went to Melissa M. Rolls, assistant professor ofbiochemistry and molecular biology and director of the Center for Cellular Dynamics. Shewas selected as a 2009 Pew Scholar in the Biomedical Sciences. As a Pew Scholar, Rolls

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will receive a $240,000 award over four years to support her research and gain inclusion intoa select community of scientists that encourages collaboration and the exchange of ideas.

"To get the word out about the extraordinary research that is happening at Penn State, BillMahon has led the effort to form the Committee on Institutional Cooperation BigSciencenewswire. This heavily trafficked site is a convenient aggregation of breakthroughdiscoveries and research headlines from all Big Ten universities. Bill’s team is also in theprocess of creating a BIGScience site on YouTube.

"Moving on to athletics, we have long known we have many of the best sports teams in thenation, but recently two of our athletic directors were recognized for excellence.

"Tim Curley was recognized for the second time by his peers in the National Association ofCollegiate Directors of Athletics as the regional Athletic Director of the Year. Tim is in his16th year leading our program.

"Penn State Altoona Athletic Director Fredina Ingold is the Division III regional AthleticDirector of the Year. There are 450 Division III schools in this region of the United Statesalone.

"Penn State track and field coach Beth Alford-Sullivan was named Big Ten Women’s Trackand Field Coach of the Year. This is the second consecutive year Beth has won this awardand the 10th time in her career as a track and field and cross country coach that she hasbeen recognized as conference coach of the year.

"Penn State student-athletes continue to display excellence in the classroom, and during the2008-09 academic year, 253 Nittany Lions earned Academic All-Big Ten honors. We set aschool record of 11 Academic All-Americans in 2008-09, and Penn State leads Big TenConference with 3,312 Student-Athletes selected for Academic All-Big Ten Honors over thepast 15 years.

"Finally, two Penn State athletes were singled out for their outstanding performances. Men’sgymnast Casey Sandy and women’s volleyball player Nicole Fawcett were named as PennState’s male and female athletes of the year.

"With that good news I conclude my report. I’ll be happy to take your questions.".President Spanier received comments concerning:

• Expanding Passenger Rail Service testimony before the U.S. House of Representatives Committeeon Transportation and Infrastructure's Subcommittee on Railroads, Pipelines, and HazardousMaterials.

Informational Report on Penn State New Kensington

Dr. Kevin J.G. Snider, Chancellor, discussed the activities and achievements of Penn State New Kensingtonas well as his vision for future directions of the campus. [A visual presentation was made.]

Operating Budget for the University for the Fiscal Year Beginning July 1, 2009

Dr. Graham B. Spanier, President of the University, provided a report on the 2009-2010 Operating Budget.[A visual presentation was made.]

Reports from Standing Committees

A. Committee on Campus Environment

Vice Chair Hughes reported that a quorum of the Committee on Campus Environment was presentwith the following members in attendance: Alexander (chair) (was in attendance at the morning

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session), Hughes (vice chair), Broadhurst and Spanier (ex officio), Baldwin, Hetherington, Huber, andPoprik. There were no recommendations for action to present to the Board of Trustees.

Since the last meeting, the Committee had an opportunity to receive information on the history andeffectiveness of the Administrative Fellows Program. The program began in 1986 and was developedjointly by Penn State's Commission for Women and the President's Office. To date, 59 fellows haveparticipated in the program. The program provides invaluable opportunities to gain a betterunderstanding of the University and the decision making process at all levels of the University. TheCommittee also had an opportunity to hear from the current fellows who are completing their termsand learn of their individual experiences over the past academic year.

B. Committee on Educational Policy

Chair Hayes reported that a quorum of the Committee on Educational Policy was present with thefollowing members in attendance: Hayes (chair), Joyner (vice chair), Broadhurst and Spanier (exofficio) Junker, Myers, Riley, and Shaffer. There were no recommendations for action to present tothe Board of Trustees.

The Committee received the following items for information:

1. Information on Graduate Programs

a) Integrated Bachelor of Landscape Architecture/Master of Landscape ArchitectureUndergraduate-Graduate Degree Program in the College of Arts and Architecture:Drop of Program

b) Doctoral Minor in Latin American Studies in the College of the Liberal Arts: NewProgram

c) Dual-Title Graduate Degree in Language Science in the College of the Liberal Arts:New Program

Since the last meeting, the Committee had an opportunity to receive information on the use oftechnology to enhance teaching and learning. The focus was on several initiatives related toE-Testing and Digital Education including Penn State's Course Management System, theeLearning@PSU Cooperative, the Blended Learning Initiative, and the Digital Commons Initiative.

Counsel Courtney reported there were no pending legal matters.

C. Committee on Finance and Physical Plant

Chair Strumpf reported that a quorum of the Committee on Finance and Physical Plant was presentwith the following members in attendance: Strumpf (chair), Henning (vice chair), Broadhurst andSpanier (ex officio), Chaiken, Clemens, Garban, Hintz, Lubert, Masser, and Surma. The Committeeon Finance and Physical Plant recommended that the Board of Trustees approve the followingresolutions:

1. WHEREAS, It is the desire of The Pennsylvania State University to begranted a renewal Hotel Liquor License, and

WHEREAS, It is the desire of The Pennsylvania State University to begranted a renewal of Sunday Sales Permit for the sale of alcoholic beverages at TheNittany Lion Inn, and

WHEREAS, It is the desire of The Pennsylvania State University to begranted a renewal of Amusement Permit,

THEREFORE BE IT RESOLVED, That applications of License and Permitsto expire January 31, 2011, be filed with The Pennsylvania Liquor Control Board andthat Joseph J. Doncsecz, Corporate Controller, and Albert G. Horvath, Senior VicePresident for Finance and Business/Treasurer, be authorized and any and all areauthorized to execute the necessary applications and bond, and any other papersrequired by the Pennsylvania Liquor Control Board.

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2. RESOLVED, That the conditions governing certain existing scholarships,fellowships, awards, and similar funds previously established at the University berevoked and that the Officers of the University are authorized to put into effect therevised regulations as requested by the donors.

3. RESOLVED, That the Board of Trustees gratefully acknowledges thegenerous contributions of the many friends of the University in support ofendowments, funds, and other major commitments as reported to the Committee onFinance and Physical Plant at its meeting of July 10, 2009.

FURTHER BE IT RESOLVED, That the Officers of the University areauthorized to convey the Board's appreciation to these generous benefactors whoprovide opportunities for many students to receive a quality education.

4. RESOLVED, That the TriBio building, located at 2011 Pine Hall Drive inFerguson Township, is named "Earth and Mineral Sciences Energy Institute, Collegeof Earth and Mineral Sciences."

5. RESOLVED, That the Varsity Golf Clubhouse is named "Tombros VarsityGolf Clubhouse."

6. RESOLVED, That the various roadways at the Medical Center be namedConference Drive, Long Lane, South Addition Drive, Utility Drive, Meadow WoodDrive, and Reservoir Drive at The Milton S. Hershey Medical Center to provide aunique street address to every building on campus, for use in the emergency 911system.

7. Whereas, the Commonwealth of Pennsylvania has not approved its budgetand related appropriation to The Pennsylvania State University as of July 1, 2009;and

Whereas, The Pennsylvania State University administration, knowing of thedepth of the current fiscal crisis in the state and beyond, determined months ago toforgo salary increases at the University this year and has reduced the academic andadministrative budgets; and

Whereas, The Pennsylvania State University is committed to provideexceptional educational experiences and positive workplace environments for all,

THEREFORE, BE IT RESOLVED, That in the event that the Commonwealthof Pennsylvania's budget is finalized by July 17, 2009 at the level proposed in theGovernor's Budget Recommendation of March 3, 2009, the proposed OperatingBudget for the University for the fiscal year beginning July 1, 2009, as shown inScenario 1 and Schedules I-V which are attached hereto and made part hereof, isapproved.

FURTHER RESOLVED, in the event that the Commonwealth ofPennsylvania's budget is not finalized by July 17, 2009, or is finalized at the levelproposed in the Governor's Proposal of June 26, 2009, the Officers of the Universityare authorized to effect the Operating Budget for the University for the fiscal yearbeginning July 1, 2009, as shown in Scenario 2 and Schedules I-V which areattached hereto and made part hereof.

FURTHER RESOLVED, in the event that the Commonwealth ofPennsylvania's budget is finalized at an adjusted level between the Governor'sProposals of March 3, 2009 and June 26, 2009, the Officers of the University areauthorized to effect the Operating Budget for the University for the fiscal yearbeginning July 1, 2009, as shown in Scenario 2 and Schedules I-V which areattached hereto and made part hereof, and a revised operating budget will beprepared and reviewed with the Board of Trustees at the earliest opportunity to effectappropriate changes for the Spring Semester 2010. (See Appendix I)

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8. Whereas, the Commonwealth of Pennsylvania has not approved its budgetand related appropriation to The Pennsylvania State University as of July 1, 2009;and

Whereas, The Pennsylvania State University administration, knowing of thedepth of the current fiscal crisis in the state and beyond determined months ago toforgo salary increases at the University this year and have reduced the academicand administrative budgets; and

Whereas, The Pennsylvania State University is committed to provideexceptional educational experiences and positive workplace environments for all,

THEREFORE, BE IT RESOLVED, That in the event that the Commonwealthof Pennsylvania's budget is finalized by July 17, 2009 at the level proposed in theGovernor's Budget Recommendation of March 3, 2009, the tuition and fees at alllocations are, effective for the 2009-2010 academic year, as shown on thestatements (Scenario 1) attached hereto and made part hereof.

FURTHER RESOLVED, in the event that the Commonwealth ofPennsylvania's budget is not finalized by July 17, 2009, or is finalized at the levelproposed in the Governor's Proposal of June 26, 2009, the Officers of the Universityare authorized to effect tuition and fees at all locations, effective for the 2009-2010academic year, as shown on the statements (Scenario 2) attached hereto and madepart hereof.

FURTHER RESOLVED, in the event that the Commonwealth ofPennsylvania's budget is finalized at an adjusted level between the Governor'sProposals of March 3, 2009 and June 26, 2009, the Officers of the University areauthorized to effect tuition and fees at all locations, effective for the 2009-2010academic year, as shown on the statements (Scenario 2) attached hereto and madepart hereof, and revised tuition and fees will be prepared and reviewed with theBoard of Trustees at the earliest opportunity to effect appropriate changes for theSpring Semester 2010. (See Appendix II)

9. RESOLVED, That the final plans for the Dobbins Hall Addition, Penn StateErie, The Behrend College, as designed by Burt, Hill Architects of Pittsburgh, areapproved.

BE IT FURTHER RESOLVED, That authorization to award contracts toconstruct the project be approved at a cost not-to-exceed $7,500,000 from fundsavailable to the University.

10. RESOLVED, That the Board of Trustees approves the acquisition of theproperty comprised of four contiguous parcels containing approximately 1.65 acreslocated in Ferguson Township, Centre County, Pennsylvania, from Craig W. andKathleen Kissell for $2,500,000.

BE IT FURTHER RESOLVED, That the Officers of the University areauthorized and directed to take such steps as are necessary to make effective thisresolution.

[Revised Action Items C.7 and C.8 were distributed which replaced and superseded the proposedactions in the agenda.]

The Committee received the following items for information:

1. Naming of Rooms, Portions of Buildings and Plazas

a) The men's locker room in the Varsity Golf Clubhouse the "Paul and Judy HummerFamily Men's Locker Room" for a gift from Paul and Judy Hummer.

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b) The men's head coach's office in the Varsity Golf Clubhouse the "M.J. (Deacon)Palmer Men's Head Coach's Office" for a gift from George Middlemas.

c) The women's head coach's office in the Varsity Golf Clubhouse the "MelindaAmpthor Women's Head Coach's Office" for a gift from Melinda Ampthor.

d) A conference room on the third floor of the Penn State Hershey Cancer Institute inmemory of Gary Chase, a faculty member in the Department of Public HealthSciences. Faculty, staff, family and friends raised money to name the room. Theplaque should read: "This conference room was made possible by family, friends,faculty and staff in memory of Dr. Gary Chase."

2. Status of Major Construction Programs and Borrowing

3. A photo report on the progress of selected construction projects was presented including theMetzgar Admissions and Visitors Center, Penn State Erie, The Behrend College; theMisciagna Family Center for Performing Arts Addition, Penn State Altoona; the MilleniumScience Complex, University Park; and the Penn State Hershey Cancer Institute at TheMilton S. Hershey Medical Center.

Since the last meeting, the Committee had an opportunity to receive information on the capitalplanning process, development of the operating budgets, and subcommittee activities.

Counsel Courtney reported there were no pending legal matters.

The Board voted to approve the action items as recommended by the Committee on Finance andPhysical Plant.

Election of Members to the Board of Directors: Agricultural Law Resource and Reference Center, TheDickinson School of Law of The Pennsylvania State University

The Board of Trustees approved the following resolution:

RESOLVED, That the Board of Trustees elects Trustee Keith W. Eckel and TrusteeBetsy E. Huber to serve on the Board of Directors of the Agricultural Law Resource andReference Center of The Dickinson School of Law of The Pennsylvania State University.

Awarding of Emeritus Status to Former Trustee Robert D. Metzgar

The Board of Trustees approved the following resolution:

RESOLVED, that in recognition of loyal and meritorious service to the Board ofTrustees, the members of the Board encourage Robert D. Metzgar to serve as TrusteeEmeritus of The Pennsylvania State University, effective July 10, 2009.

Informational Report on For the Future -- The Campaign for Penn State Students

Mr. Peter G. Tombros, Chair of For the Future -- The Campaign for Penn State Students, presented aninformational report on the Campaign and University Development. [A visual presentation was made.]

Informational Report on the Penn State Alumni Association Activities by the President of the AlumniAssociation

A report on the activities of the Penn State Alumni Association was presented by Dr. David C. Han, Presidentof the Penn State Alumni Association for 2008-2009. [A visual presentation was made.]

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Announcements by the Chairman of the Board of Trustees

Chairman Broadhurst in his remarks:

- Thanked Kevin Snider and his staff for hosting the meetings at Penn State New Kensington; and

- Informed the trustees there will be a seminar on the afternoon of Thursday, September 10, 2009.

The meeting adjourned at 3:00 p.m.

Respectfully submitted,

Paula R. AmmermanAssociate SecretaryBoard of Trustees

07/10/2009 245-9 Appendix I

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