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[ Silence ]
[ Inaudible Discussion ]
>> If we could get seated please.
[ Inaudible Discussion ]
Good afternoon everyone, I'm delighted that we're
at the Penn State Milton S. Hershey Medical Center
for a meeting today.
We had an opportunity to tour the Penn State Hershey
Children's Hospital this morning and we're able
to meet several medical and nursing students over lunch.
That combined with the success
of THON last month really has a way of energizing you.
Our very special thanks to Dr. Hal Paz
for hosting our meetings.
We decided that we like it so much here
that we'll make this an annual event instead of just once
in a while so we'll be here next year as well.
I want to begin our meeting this morning--
or this afternoon by calling Dr. Paz
for a few words of welcome, Dr. Paz.
[ Noise ]
>> Thank you very much Chair Peetz.
It's a great pleasure on behalf of our faculty, students,
and staff at the Penn State Hershey Medical Center
and our College of Medicine to welcome all of you
to this campus for the Board of Trustees Meeting.
We have been thrilled and honored
to have the Trustees here last night and this morning
and we hope that this is a very fruitful productive meeting.
So thanks all and welcome and we are delighted
that you're all coming back next year as well.
>> Okay, great.
>> Thanks Hal.
I'd like to welcome the University Faculty Senate
Officers with us here today and have them stand please.
For a couple of them, this is their last meeting.
Daniel Hagen is the Chair and is Professor of Dairy
and Animal Science, as Dan outgoing Chair.
Larry Backer is Chair-elect and is Professor of Law, okay.
And Pam Hufnagel is the Secretary.
Pam is a senior instructor in education at Penn State DuBois.
This is the last meeting for the Senate Officers
in their respective positions as the elections
of officers will occur prior to our next meeting.
Our special thanks to each of you for your role
in the shared governance of our University, particularly
to Dan and to Pam, outgoing.
The student representatives with us
at our meetings are Jon Lozano,
president of the Graduate Student Association.
Jon, maybe you could stand.
There he is.
TJ Bard who's the President
of the University Park Undergraduate Association.
We received a summary of the accomplishments
of the organizations represented by these students and I have
to say, the energy
and enthusiasm is remarkable and commendable.
This will be the last meeting for Jon and TJ
as representatives as well and both TJ and Jon have indicated
that they would like to make some brief farewell remarks.
So I think we'll go with the undergraduate first, TJ.
>> Thank you.
Esteem members of the Board of Trustees,
I thank you for the opportunity today to speak.
I've been honored to serve as the President
of the University Park Undergraduate Association this
past year.
I can say that I never imagined what the year had in store
for me when I assumed office in late March.
However, despite this past year, I have never been prouder
to call myself a Penn Stater.
I can also honestly say with conviction
that there is no closer group of almost 95,000 people
in this world than the student population at Penn--
attending Penn State this year.
We're a student population more rooted than ever before
in the values and founding principles
that our University was created on more than 157 years ago.
And much of that is due to the leaders
within our vast Penn State Community.
First, President Erickson, I want to sincerely thank you
on behalf of the undergraduates at University Park
for your unwavering service to this institution.
You stepped up during a time when we needed leadership most
and you have proven
to the entire world what it truly means to be a Penn Stater.
I'm incredibly grateful for your willingness to think outside
of the box, your ability to try new approaches
to student engagement and most importantly,
your openness to change.
The students have such a phenomenal ally in you.
I hope that the leadership of this institution continues
to recognize the importance of the student voice at Penn State.
The majority of you sitting
in this room today were once students, students that went
on to become the alumni that formed the fabric
of our worldwide Penn State Community,
students who often even come to service faculty,
staff and the leadership
that governs the Pennsylvania State University.
It is the students paired with this faculty and this staff
that formed the very lifeblood of our institution.
I am grateful for our new board leadership and their efforts
to listen and incorporate student voices more dynamically
within the University.
I would like to thank Chair Peetz and Vice Chair Masser also
for their efforts to increase student engagement more
than it ever has been before.
I think there are many important steps being made
that the students truly do value.
However, I trust that there are many more to be made
in the time that is yet to come.
I hope that the students of Penn State are able
to gain a greater familiarity of the board, its operations,
and most importantly with you, the dedicated Trustees
that devote so much of their time to Penn State.
We have much growth yet to do moving forward
in these next couple of years, growth that be--
that can be good and change that is crucial for the future.
However, I know at strong leadership,
we will always remain a world class research institution
dedicated to being the most student-centered university
in the nation.
I am grateful to have done my part representing the student
voice at Penn State.
I'm grateful to have had this opportunity within the Board
and most importantly, I am grateful to be a Penn Stater.
Thank you.
[ Applause ]
>> What a great statement TJ, thank you very much for that.
And now, Tom.
>> So I don't have anything prepared in writing
but I've been spending a lot of time thinking
about exactly what I was going to say
because this is my ninth year at Penn State,
this is my second year as GSA President and this is the first
of many goodbyes for me at the University.
And as I look around this room, I see the people who are here,
in front of me here at the Board and table
at the President's Council in the front of the room
and I think about all the great memories I've had working
with so many of you over the past 2 years.
And especially last year when I made my remarks,
the crux of it was I'll be back in a month.
I don't plan on leaving, this time I am and I'd just want
to thank everyone in this room for all the opportunities,
the chance to serve the graduate population here,
the undergraduates when I was still in that role as well.
Penn State really to me over these last few months is--
I've had a chance to think about what it's meant to me
and what I've been able to take away from that.
And it's given me everything in my--
that I have right now and I never really can repay that.
I'm very thankful for the opportunity to serve,
to work with all of you and to continue to grip
as well Penn State's pride going forward.
Thank you all.
[ Applause ]
>> Thank you, thank you and good luck Tom as you head
out after 9 years of it's--
might be a record so that's terrific, wonderful.
So welcome, also, to David Gray.
While he was with us for most of the meetings in January,
David officially began his responsibilities
as the Senior Vice President of Finance
and Business on February 6.
So welcome David, please stand as well.
[Applause] And we look forward to working with you, David,
for the future for sure.
Before proceeding with the day's business,
I want to take a moment and have us all reflect
on what Penn State means
to our local community and to our state.
Since beginning my service as Chairman of the Board,
I've been awestruck by the commitment of our students,
faculty, staff and alumni to ensuring
that Penn State continues its role as one
of the leading academic and research institutions
in the world, and as an example for others to follow.
A month ago, I went to THON
and saw all our students raise more money
for pediatric cancer care than they ever have before.
I've met with diverse members of our community
and all are deeply committed
to making Penn State the best it can be.
I've been working with the president who took
over at a time when we needed him most
and who's serving Penn State remarkably well.
And I've been working with the Board of Trustees
who selflessly devote an incredible number of hours
for no benefit other than helping their alma matter.
In the midst of strife,
Penn State has come together as a community.
I could not be prouder to be part of it.
When Keith and I took office back in January,
our entire community had been
through a very difficult experience together.
Keith and I pledge that we would ensure
that Penn State helped the victims get justice and care.
We pledged that the university would be more open
and transparent, and we pledged reform.
Our work today will demonstrate the progress we're making
on each of those fronts.
We will now proceed with the business of the day and I'd
like to remind everyone to turn off your cellphones
so that we can direct our full attention to the issues at hand.
I'd like to call the meeting to order
and Mrs. Ammerman will you please call the roll.
>> Trustees Alexander?
>> Here.
>> Allan?
>> Here.
>> Arnelle?
Broadhurst?
Clemens?
>> Here.
>> Corbett?
Dambly?
>> Here.
>> Deviney?
>> Here.
>> DiBerardinis?
>> Here.
>> Eckel?
>> Present.
>> Erickson?
>> Here.
>> Frazier?
Garbin.
>> Here.
>> Greig?
>> Here.
>> Hayes?
>> Here.
>> Hetherington?
>> Here.
>> Hintz?
>> Here.
>> Huber.
>> Here.
>> Jones?
>> Here.
>> Khoury?
>> Here.
>> Lubert?
Masser?
>> Here.
>> Myers?
>> Here.
>> Peetz?
>> Here.
>> Riley?
>> Here
>> Shaffer?
>> Here.
>> Silvis?
>> Here.
>> Strumpf?
>> Here?
>> Suhey?
>> Present.
>> Surma?
>> Here.
>> Tomalis?
>> Here.
>> Branstetter?
And Junker?
>> Here.
>> Great thank you.
So may I have a motion to approve the minutes
of the meetings of the board held on January 20th?
[Inaudible Remark]
>> We have a second?
>> Second.
>> All in favor?
>> Aye!
>> Anyone opposed?
Okay, motion carries.
At this time I'd like to ask President Erickson
to present his informational report.
[ Noise ]
>> Thank you and good afternoon.
I want to begin by thanking TJ Bard and Jon Lozano
for your outstanding service in your respective roles.
It's been a great pleasure to work with you both.
And I would add Peter Khoury in his role as President of CCSG.
You and our other student leaders
at Pennsylvania have just been remarkable in your leadership.
You've thought me a great deal over the past several months,
over the past couple of years actually and you certainly leave
with our best wishes as, as you move on.
So thank you, very, very, very much.
Well welcome to all, to our Hershey Campus.
I want to begin by thanking Dr. Paz and his colleagues
for their hospitality over the past two days.
This is been a great opportunity
to explore how this campus contributes
to Penn State's mission of teaching research and service
as it fulfills a critical need for healthcare
and the commonwealth of Pennsylvania.
Many of us have an opportunity before lunch
to visit the construction of the Children's Hospital;
I'm sure Dr. Paz will be talking about more
about what a magnificent facility that will be--
which will extend the great medicine
that Penn State provides for children
in Central Pennsylvania and well beyond.
Dr. Paz will update you on many aspects
of the Milton S. Hershey Medical Center
in the College of Medicine.
So I'm going to focus on other news.
One of the most depressing orders
of business is the discussion surrounding the state
appropriation to Penn State.
This is indeed a very tough budget year for Pennsylvania
and I don't envy the task of Governor Corbett
in the general assembly in producing a final budget.
But I'll continue to make the case
that Public higher education is at the core
of state's economic future.
Last month I testified before the Pennsylvania house have sent
appropriations committees and I was encouraged by the level
of support for Penn State and the needs
of Pennsylvania families.
Beyond the perennial question
of when we will revive the Penn State-Pitt football rivalry,
much of the discussion revolve
around what I'll call the three Es; Education,
the Economy, and Ethics.
Today, I'll touch upon each of these three areas.
First let's look at the demand for a Penn State education.
Applications for admission continue
to come in at record numbers.
To date, we've received about 106,000-- applications.
Graduate applications are up 4 percent
and there's strong growth in international applications.
With the international undergraduate application is
up by 23 percent
and international graduate application is up 10 percent.
There's also continuing interest
in our award-winning World Campus.
With applications for first time
and advance placement admission uo 15 percent
for a summer or fall start.
Overall, undergraduate applications
and acceptances are tracking historical patterns and trends.
Paid [inaudible] for university park are running very close
to last year and while there is some really softness
and some commonwealth campus deposits,
there's still a long way to go in the campus recruitment cycle.
Most of the year to year difference is accounted
for by three of our largest commonwealth campuses
where enrollments have been most robust during the past decade
or more.
A frequently asked question
from our legislators is what Penn State is going
to help our students complete their degrees
in a timely fashion.
The Chronicle of Higher Education just released a
comprehensive easily searchable data base for graduation rates
for 1251 colleges and universities.
I'm pleased to note that Penn State University Park ranks
number one among Pennsylvania public schools
and fifth among national flagship public universities
for the six-year graduation rate.
Nationwide, University Park is in the top five percent
of public colleges for a four year graduation rate
and in the top two percent for our six-year graduation rate.
What's more, we're always to trying to improve completion.
And this year, we launched a new initiative called the Maymester.
This month-long intensive session is designed
to help students catch up on Coursework
or accelerate toward degree completion while still allowing
ample time during the summer to look for jobs
and internship opportunities.
Of course one of the most important ways we're
contributing to the education of our students is
through our outstanding faculty.
Each year our faculty is tapped for membership
in leading professional organizations.
This year was no exception and the group shown here was named
to the American Association for the Advancement of Science.
This is the world's largest general scientific society
and this honor is bestowed based on the scientifically
or socially distinguished efforts
to advance science to its applications.
In addition, three assistant professors, Scott Phillips,
Nathan Gemelke and Karl Schwede were honored
with the 2012 Sloan Research Fellowships.
This is one the most prestigious awards for young faculty
that predicts a bright future for these scholars.
As Dr. Paul Joskow president of Sloan Foundation said,
"Today's Sloan Research Fellows are tomorrow's Nobel
Prize winners.
These outstanding men and women are responsible for some
of the most exciting science being done today."
Our faculty are also responsible
for cultivating the talents of our students.
I had the pleasure of hosting the president's concert
at Heinz Hall in February.
This was a wonderful showcase of some
of Penn State's most talented musicians under the direction,
a world-renowned faculty.
I hope you'll be able to join us next year.
Now I'd like to show you a video about another research project
that demonstrates how far Penn State faculty will go
to engage students.
This video is part of a new series on the Big Ten Network
that began this winter and is the result
of a Big Ten initiative chaired by Bill Mahon,
our vice president for University Relations
to promote university research expertise.
[Background Music]
>> Penn State was founded in 1855 as a land-grant university.
More than 150 years later, a group at Penn State,
named the Lunar Lion Team, is eyeing a new piece of property.
>> Google has put a 20 million dollar grand prize
for the first team to land a spacecraft on the moon.
We're going to keep going.
We're going to see this all the way through to the end
and we're going to put Penn State on the moon.
>> The Lunar Lion team believes that the development
of new space exploration technology can lead
to new discoveries with far reaching applications.
[Background Music]
>> We're looking forward to space exploration
and space usage in the future and trying
to point Penn State in that direction.
And this project is a very good opportunity to start that.
>> The team has until 2015 to fund, build, launch,
and a land a vehicle on the moon, and performs a checklist
of tests upon arrival.
>> When we get to the surface of the moon, we have to playback
from the space craft 8 minutes of high definition video
and provide a panoramic image of our landing site.
Once we've done that, there's another requirement
where we have to take off
and land another spot 500 meters away.
[Background Music]
>> No spacecraft has landed on the moon
since the former USSR's Lunar 24 Robotic Mission in 1976.
And the Penn State Team faces another challenge,
one they see as a benefit.
>> There are universities and researchers associated
with many things, but we're the only team that's led
by the universe.
>> I'm proud of Penn State to be the only university-led team.
It just shows [inaudible] drive and perseverance
that students do have.
>> But I had to-- for my own future on the line and I turned
down a job offer I had so I could stay
and work on the project.
>> This is really a collaborative project
that involves the College of Engineering, College of Science,
College of Earth and Mineral Sciences and Information Science
and Technology as well as the Applied Research Laboratory.
>> We have access to students, students who otherwise might go
into computer programming to get into the gaming world
or into internet business.
We're going to look at this and seen opportunity to work
on an interplanetary mission to send something
out to the Solar System out to the moon.
Where else are they going to get to do this as a student?
When we build the spacecraft, we're going to have benefits
of a lot the resources here at Penn State.
So I know that this mission is going
to be the lowest cost landed mission to the moon in history.
>> Each member of the 20-person Lunar Lion Team is hard at work
to meet the goal of their 2014 launch date.
Step 1 involves designing their mode transport.
>> The spacecraft that we've come up with is about a meter
and half in diameter and it's only
about 190 kilograms all totaled.
We went for small.
We went to straightforward.
The next stage is to go to a detailed level of design
for the body of the spacecraft.
Once we've gotten through the design phase,
it gives us about a year or two to build
and do the preliminary testing on the spacecraft.
And then about the 6 months
for what we call environmental testing.
The most challenging part of this mission is going to be
that 2-minute period when we're firing our thruster in landing
on the surface of the moon.
>> I am working on the part that prevents us
from crashing to the moon.
So when we approached the moon, we're going to be going
in over 5,000 miles per hour.
And we need to very suddenly come
to us a stop using a solid rocket engine.
And the timing is critical issue.
>> But the objective to keep the spacecraft simple and light,
the Lunar Lion Team decided to make their vehicle solar power.
These specifications are explored
in the Penn State Student Space Programs Lab.
>> We use solar power because it is one
of the most readily accessible power supplies in space.
And it's also really cheap compared
to any other options you might have.
>> As the spacecraft's designs and development move forward,
the Lunar Lion Team has already identified a landing spot
on the moon.
A place familiar to those who were a part
of the last human moon mission in 1972.
>> So we said, "Alright, well, why don't we just,
for the purpose of our study pick,
one of the Apollo landing sites as our landing site.
And we already have a first order three-dimensional map
of the landing site that we've chosen on the moon.
>> I feel that we're going to win this competition
because we're focused on strictly objectives.
We're not worried about any flashiness.
We have the minimal amount of subsystems
that do the job necessary.
So as long as we're focused on our goals,
focused on our requirements of our system I think
that can be [inaudible].
>> The Lunar Lion Team has goals
of not only winning the competition
but advancing the goals of the University.
>> When we win this prize, we're going to take
that 20 million dollars and we're going to turn
into scholarships for students in technology and science.
By establishing these scholarships it'll be a means
for Penn State to continually recruit the best
and the brightest in science and engineering.
>> The Google Lunar X Prize is only the beginning
for Penn State and it really will give us the credibility
to pursue future missions.
>> We're going to be able to build
for Penn State a capability to down the road,
10 years from now, 20 years from now,
50 years from now be a resource for private space research
for space exploration in a way
that few Universities can do today.
[ Music ]
[ Noise ]
>> Remarkable in addition to the interplanetary scale,
Penn State also has researchers looking at the microscopic level
to discover the knowledge that will improve lives
for future generations.
Here's another short video
to describe a very promising collaboration.
[Background Music]
>> Every year in the US,
over 40,000 people are affected by leukemia.
What if we could reduce that number to zero?
At a weekly informal faculty lunch
about 2 years ago Sandeep Prabhu, an associate professor
of Immunology and Molecular Toxicology here at Penn State,
briefed his colleagues about the research he
and his team were up to.
Bob Paulson, an associate professor of Veterinary
and Biomedical Sciences was there.
>> When Sandeep was talking about his work, you know,
it was interesting and it wasn't what I do.
>> At that time he didn't say anything,
but then he came across this article.
>> I showed up in his office with this paper in hands.
>> He came running to me with that paper.
>> Well, I've said, "This is what you work on, right?
>> And that is the beginning
of what could well be a possible cure for leukemia.
Dr. Paulson is studying the stem cells that cause leukemia.
Dr. Prabhu is studying how fish oil is changed
into bioactive molecules by cells in our bodies.
One of those molecules is called J3.
When they teamed up and treated the leukemia stem cell
with J3 they found that it does something no one expected.
>> This is the first time we have shown
that cancer stem cells can be targeted.
>> What it does is that it tells them to die.
>> And that targeting is important.
Stem cells tend to hide during conventional chemotherapy.
They're nearly impossible to kill.
Initial investigations indicate
that J3 tells the leukemia stem cells to destroy themselves
and leaves the healthy cells alone.
Every single time in the Petri dish and in mice,
the leukemia cells die and do not comeback.
>> I'm cautiously optimistic.
Right now I'm saying, you know, we have cured it in mice.
>> Currently, the team is studying the compound
on human cells in the lab.
Once proven, their next steps include human trials.
Doctors Paulson and Prabhu say they're excited
and ready for what lies ahead.
And what began simply enough with the question amidst pizzas
and PowerPoint presentations, and yes, they still attend
that faculty lunch each week because you'll never know
where inspiration will come from.
>> It's one of those nice times in science
where you do an experiment,
you immediately know what the next experiment to do with
and we're rolling, you know, there's no looking back.
>> Penn State, inspiring collaboration.
>> Experiences with outstanding faculty,
ambitious research projects
in real world applications enhance the career opportunities
for our students.
And despite difficult economic times,
we've had excellent news from the job market.
Consider that nearly 350 employers attended our 2012
spring career days, that's a 6 percent increase over last year,
Penn State's, people to people career fare focusing
on service wellness
and recreation opportunities had more than twice
as many registered employers as last year.
And with 48 school districts registered
to attend our education career day next week,
the employment prospects for students continue
to be strong for the future.
Penn State commitment to research and education
in Pennsylvania is also contributing
to the larger economy.
In the recent Senate Appropriation Hearing,
our Philadelphia Senators brought up the impact
of Penn State's leadership in the energy innovation hub
at the Philadelphia Navy Yard.
Launched, 18 months ago,
with the 129 million dollar federal grant,
an additional 30 million dollars from Pennsylvania,
this project is pioneering new technologies and tools
to make buildings more energy-efficient
and creating new jobs in the Philadelphia area.
We expect this economic engine to continue
for many years to come.
I pledge to leave this University with openness
and better communication.
To that end, we recently launched an openness website
with links to updates, budget information,
frequently asked questions contracts, and other resources.
The site has had 10,000 visitors and seems
to be a facilitating a greater flow
of information to our constituents.
We're also moving forward on the implementation
of Judge Freeh's preliminary recommendations,
which fall into five categories.
They include; first, strengthening policies
and programs involving minors.
We will provide more clear and specific guidance to staff
and others who interact with children,
including enhanced background checks
and abuse awareness training.
A thorough review of Policy AD39,
which deals with minors involved in University-sponsored programs
or programs held
at the University is already well under way.
Second, Prompt Reporting of Abuse and *** Misconduct.
At regular intervals, we will send the university community
reminders, updates and notices to underscore the importance
of reporting misconduct and identifying ways to report.
This includes enhancing the visibility of the Office
of Internal Audit's Ethics Hotline.
Third, Compliance with Clery Act's Training
and Reporting Requirements.
A new full time Clery Compliance Coordinator will soon join the
Office of University Police and Public Safety.
We will also use outside experts to provide Clery Act training.
Fourth, Administrative Reforms,
we're finalizing the job description and search committee
for a Director of University Compliance who will coordinate
and oversee the vast array
of compliance issues throughout the University.
The board is also working to define the functions
of the Subcommittee on Audit
in reexamining the Board's oversight responsibilities.
And fifth, Athletic Department Security Arrangements.
As Judge Freeh recommended, the Compliance Office
and Intercollegiate Athletics will add an additional
staff person.
We're also developing a procedure to ensure
that the University immediately retrieves keys, access cards,
and all other University property from individuals
who are not formally associated with the university.
We're pursuing several additional initiatives
to address Judge Freeh's recommendations,
and we'll keep you and the University community informed
as details emerge.
Moving on, we're currently on what many sport fans believe
to be the sweet spot of the spectator season,
with winter teams competing
in their respective championships while spring teams
are beginning to hit their stride.
A few highlights include;
the Lady Lions won the first Big 10 Championship since 2004,
and players Alex Bentley
and Maggie Lucas were named First Team All-Big Ten.
The fourth-seeded women head to the NCAA tournament
to face 13th-seeded Texas-El Paso in Baton Rouge,
Louisiana this Sunday night, I believe it's at 5 o'clock.
Coquese Washington was honored
for her leadership being named Big Ten Coach of the Year
and he's 1 of 10 finalists
for the national Coach of the Year Honor.
The wrestling team defended their Big Ten title
and is currently ranked number 2 in the country.
As the 2011 NCAA Champions, the Nittany Lions will be competing
to defend their title.
In fact, they're doing it right now in this weekend
in the 2012 NCAA National Championship.
The men's gymnastics team is also ranked number 2
in the country.
And last week, men's gymnast Miguel Pineda was named a
Recipient of the 2012 Wayne Duke Postgraduate Award
for achievement in academics, athletes,
extracurricular activities, and leadership.
I might add, he has a 3.98 GPA in biology.
The award is an annual scholarship recognizing one male
and one female Big Ten senior student athlete pursuing a
postgraduate degree.
Now from development comes a gift story
that is both remarkable and inspiring.
Hiroshi Hamasaki graduated in December 2011, and just weeks
after receiving his master's degree in geosciences,
he wanted to thank his adviser and professor
of geochemistry, Hiroshi Ohmotto.
Rather than just sending an e-mail or text
like so many others, Hamasaki gave a 100,000 dollar gift
to establish the Geosciences Research Fund in Honor
of Doctor Ohmotto in the College of Earth and Mineral Sciences.
Hamasaki, a native of Japan,
said the gift reflects his appreciation for the support
and mentoring he experienced during his three years
of study with Dr. Ohmotto.
It also speaks to what Hamasaki described
as the strengths Penn State,
the sense of community among students, dedication of faculty
and world-class research.
He said, "Penn State changed my life.
I learned not just academics
but also gained a broader perspective.
I'm proud to be a Penn State alumnus, and the easiest way
to show my appreciation was with this donation."
TJ and Jon, we don't expect quite that soon.
[Laughter] I also wish
to recognize the remarkable achievements
of the dedicated Penn State Hershey Development team.
There has been a strategic expansion of staff.
And through their efforts,
this division has just reached 200 million dollars
in commitments for the future of the campaign
for Penn State students.
This achievement, over five years,
represents 41 million dollars more
than once raised during the seven-year Grand Destiny
Campaign for the Medical Center in the College of Medicine.
This wonderful success to date has been made possible
through a focus and securing major gifts including 17 gifts
of 1 million dollars or more, The engagement of physician
and scientist partners, and the implementation
of a strategic prospect management process.
In addition, we're very grateful to The Rocco
and Nancy Ortenzio Foundation
for the 3 million dollar commitment
to establish The Rocco-Ortenzio Chair
of Physical Medicine and Rehabilitation.
The endowed position will enable the institution
to recruit a nationally recognized leader
for its newest department
as it addresses the growing need throughout Pennsylvania
for physical medicine and rehabilitation.
Hershey's development team was also instrumental
in realizing the dream of the new,
free standing Children's Hospital building,
which will open later this year.
This ambitious and important project was made possible
by more than 600 million dollars, 66 million dollars
in private philanthropy.
Finally, a few words on what is unquestionably the largest
and most incredible student run philanthropy in the world.
In February, the 46-hour Penn State Dance Marathon set a new
record, raising 10.7 million dollars
for the Four Diamonds Fund
at Penn State Hershey Children's Hospital.
That brings the total THON has raised since 1977 to more
than 89 million dollars for the kids.
This continued growth is a testament to the organization,
creativity and leadership of everyone who unites in the fight
against pediatric cancer,
in the commonwealth, and around the world.
We'll invite the overall chair to our May meeting
so we can recognize her in person.
To close my remarks, I'd like to share a short video that focuses
on the Four Diamonds Fund and THON.
I think it does a beautiful job of showing the spirit of THON
and the entire Penn State community.
I hope you enjoy it.
And after it's finished, I'll be happy to take your questions.
[ Music ]
[Background Music]
>> They did some very aggressive things at Hershey.
Thought it was, you know, one of those burst fire of things
out of control when there's nothing they could do.
>> Well, I took care of that young man, the Millard boy
when he was diagnosed from his cancer
which was unfortunately a very aggressive cancer.
>> The day he died, we got his doctor and business person
in the hospital and said, "We want to start something
that will relieve the financial burden of families
that have a child with cancer."
[ Music ]
[ Background Music ]
>> Not only did the Millard family move on this.
But D. Lee Backenstose was a very important
in setting this up.
Dr. Backenstose was a family physician here and he is the one
that was able to establish all of the funding mechanism
and where the money would go and what it would support not us
for taking care of the children but also
for the support services, like social service and research
and the professorship [inaudible] and professorship.
And I think that this has given a lot of identity
to this place particularly among young people
because almost every high school in the area has many thoughts
that raised people [inaudible].
So I think that's an extraordinary institution.
[ Music ]
[ Cheering ]
[Background Music]
>> To see all of that energy and emotion
that dedication and love.
And, you know, have you ever been to a fund?
It's outstanding.
There's nothing like it.
[ Music ]
[ Cheering ]
[Background Music]
>> I-- You know, we worked hard in the early days
to get the fund going, you know.
But it was Penn State students in 1977 when they took us on
and they're the ones that really put life into the fund.
[ Music ]
[ Cheering ]
[Background Music]
>> The Four Diamonds Fund has been very supportive
by the research efforts of Children's Hospital.
Before Diamonds Fund has funded,
before Diamonds Pediatric Cancer Institute and as part
of this institute we have several endowed chairs
which allow individuals in those years
to perform a state-of-the-art nationally funded research.
And its guaranteed base of income allows me to take chances
with my research to look in new directions explore new ideas
and it's this sort of thing
which will allow the development of cures.
>> [Inaudible] young boy last year nearly sent me
to the floor in tears.
But he came up to me.
He said, "Hi my name is Mark Summer."
He said, "I'm alive because of you."
I thought that was pretty heavy stuff buster.
[ Music ]
>> Just a few of the outstanding things
that are happening at Penn State.
[Inaudible] I'd be happy to take question [Inaudible Remark]
>> Rod, thanks for that great report.
It certainly puts things in perspective and shows
that we have an awful lot to be proud off.
One specific question about the enrollment numbers, obviously,
the applications that continued to rise into record numbers
and we note that over the last couple decades,
the quality of our student body has increased.
What are you finding with the applications this year
and we continued to move upward or at least hold the line
with this high level of quality of students?
>> The pool this year,
the undergraduate pool looks almost exactly the same
as last year.
There may be a couple of points
up in certain SAT categories for example.
But GPAs are holding right on with what they have been
which has been a very high level.
At the graduate level, department heads
and deans are telling me that they're seeing the best pools
of applicants that they've seen.
One of our programs typically takes
about 5 doctoral programs a year.
They indicated that in a normal year,
they have about 90 applications.
This year they had 145 applications for 5 slots.
So the graduate, as I indicated, the applications are up,
the quality is very high.
And of course, all of the--
there really is no growth in terms of the number of students
at the graduate level overall in terms of resident programs.
All of the net new growth is in the World Campus.
As you heard the numbers substantial increase
and the number of a applications there
and we expect enrollment as well.
The World Campus has really accounted for almost all
of our net growth over the past decade and we expect
that World Campus trend will continue
for quite some time into the future.
>> How many students are enrolled in the full-time
and how many total students are enrolled?
>> Couple of ways of looking at that.
One is the total number of course enrollments.
We have about 40,000 course enrollments right now,
many of them are not otherwise registered
at Penn State in resident programs.
We have some of our students who are full-time resident students
who also take one or more campus--
one or more courses through the World Campus.
But if you look at unique enrollments
in other words students who are not part of any of our campus
or college residential programs, it's about 10,000 head count.
>> You know, this also could be a reason why the campuses are
down a little bit 'cause, you know, maybe there--
the people are now done-- are enrolling in the World Campus.
So it could be for other reason.
>> I expected that we will continue
to see a trend toward more of a hybrid model where students
at all campuses including university park will take an
increasing number of their credits
in a fully online environment through the World Campus
or courses that are offered by particular colleges.
So I would expect that that trend is really just taking off.
So we'll see more hybrid learning.
We'll see for example
at the campuses more students using the opportunities
of World Campus to fill in the curriculum.
But I think you're absolutely right.
A lot of the reduction and the number of master students
of the various campuses is accounted for by the growth
in the online World Campus.
[Inaudible Remark]
>> Rod, what's going on with enrollment at Dickinson both
on the University Park campus and also in Carlisle?
>> The applications to law school nationally,
as you've probably have been reading,
have dropped off very, very significantly.
We are experiencing that as well.
Of course, we wrote a very significant wave upward,
even with reduced level of enrollments.
We're at still more than double the number
of applications we were receiving before we adopted the
two campus one law school model.
We also have to make sure that in this realm
of a more competitive environment that we're in,
that we also maintain the quality of the students coming
in because there are number of different elements that go
into determining the ranking of law schools which tends
to be relatively important.
The rankings, once you get outside of the top 50 tend
to be relatively volatile and a change
in one particular variable can actually move the rankings quite
of ways.
Placement is one area.
Bar passage is another area.
We're a relatively small change to move you up or down.
So we're working very hard as we always do
to attract the best possible caliber of students
that we can to-- the-- our Dickinson School of Law.
We give students the choice as to whether they prefer to enroll
at the University Park campus or at the Carlisle Campus.
And it's really their preference
that determines a relative balance between the campuses.
[Inaudible Remark]
>> Rod, with regard to the compliance officer,
do you have a timeframe for when you anticipate hiring someone
for that role and it's that going to be a nationwide search?
>> Yes, it will be a national search.
We expect to have the--
a job advertisement on the street within about 10 days.
We have identified a search firm.
We are going to work with
and we want the best possible highly experienced individual
to take over that leadership role.
>> Will there also be a search committee-- ?
>> Yes.
>> -- form for that?
>> There will.
[Inaudible Remark]
>> Just quickly [inaudible].
Rod, you commented on the fact
that you're watching the state budget discussion,
very important of course for our purposes
but our current year we had a significant change
in appropriation from the state.
We have to make a number of changes
in the cost structure productivity levels
to make sure we could keep, you know,
tuition affordable as best we could.
How are we doing against this year's budget?
Are we able to live within our means
from this year's budget standpoint?
>> We, of course, had an 11.4 million dollar cut,
which was spread through various parts of the university.
The largest chunk, obviously,
through our education and general budget.
And we've really dealt with that by coming up with
that 11 million dollars, 11.4 million in cash
and putting it in reserve.
The way this will work is that in the final payment of the year
that we receive from the commonwealth during June
of the fiscal year, assuming that free stance,
that amount would be subtracted from our appropriation.
Obviously, if things improve a great deal,
it would be added back in.
But we have dealt with that by coming up with half
of that money through central reserves and half of the money
by going out to the various units and asking them
to come up with the cash.
So we didn't feel given the stress that the units were
under the financial stress that we could really expect them
to bare the full burden of that especially in as much
as we receive news about the cut almost halfway
into the fiscal year.
So we really felt it was appropriate to help
out centrally as well.
>> Is-- Rod?
>> Okay. Good, thank you.
Okay. One of the great things about coming
to Hershey is our exposure to the changes
that are happening here.
Challenges and opportunities at the Medical Center.
So Dr. Paz, will you join us again at the podium this time
for an update on what's happening at Hershey?
[ Noise ]
>> Thank you chair Peetz.
Pleased to give an update
on the Penn State Hershey Medical Center.
I'd like to begin with the snapshot
of the Penn State Hershey Medical Center and our College
of Medicine today, which will give you some idea of the scope
of what we do and also our level of integration.
As the only academic health center in Central Pennsylvania,
we serve a population
of approximately 4-1/2 million people.
We are the only facility in the entire commonwealth accredited
as both the Level 1 trauma center
for both adults and children.
After state government, we're the largest employer
in this entire region.
And as the case with the 100 or so academic health centers
across the nation, we have a four-part mission of education,
research, patient care and community service.
And while most of our peers are located in large urban areas,
Penn State Hershey Medical Center is relatively unique
in both its highly integrated organizational structure
and the geography that we cover.
All of our 9,000 employees play a vital role in our mission.
But I'd like to mention a few new members
of our leadership team.
Dr. Carol Freer is the new Chief Medical Officer
for the Medical Center.
Ms. Sherry Kwater is our new Chief Nursing Officer.
Both were appointed to these roles this year.
Dr. Robin Wittenstein joined us in August of 2011
as the Chief Operating Officer
of the Penn State Hershey Health System.
Both Dr. Freer and Wittenstein are Penn State alumna.
We'd also like to welcome two new department chairs as well,
Dr. Jim Broach who joined us from Princeton University
as the new Chair of Biochemistry and Molecular Biology
and also serves as the Inaugural Director
of the Penn State Hershey Institute
for Personalized Medicine.
Dr. Aron Lukacher, our new Chair of Microbiology
and Immunology came to us
from Emory University School of Medicine.
Both of them are internationally recognized scientists whose
research has been continuously funded by the NIH for decades.
Ultimately, our mission as an academic health center is
to train the next generation of healthcare providers.
And while our medical student education
and residency training program is often the focus of attention,
it's important to note that we offer a wide range
of educational programs including clinical training,
Penn State nursing students as well as a growing array
of new graduate programs at both the master's
and the doctoral level.
We've added a number of new academic programs
over the past 6 years including a master
of homeland security program launched in 2007 that has grown
to a popular [inaudible] program.
We've added several new degree programs this year including a
new master's of public health program as well
as a clinical training compo--
accelerated second bachelor's degree for nursing students.
Other new programs -- that will be enrolling the first student--
first year students in the next several years.
Our Physician Assistant Master Degree program is scheduled
to enroll its first cohort of students in 2014 and is part
of an ongoing effort to meet the healthcare work
for needs of the commonwealth.
The new dual MD/MBA program offered with the Smeal College
of Business is the first dual degree program offered
through our new Regional Medical Campus at University Park.
The Regional Campus University Park is more
than just a new academic program.
It enables us to offer a wide range of academic
and clinical training programs while also expanding clinical
services we offer in the Center County Region, improving access
to healthcare for Penn State faculties, staff, alumni,
and retirees and for others living in the region.
The Regional Medical Campus is also creating new opportunities
for research collaborations including in areas
as cancer research and healthcare delivery
between the University Park and Hershey Campuses.
And in addition to that, offers third
and fourth year medical students the opportunity
to complete their medical education in State College
with the opportunity to helpfully one day practice
in this region as well.
We're recognized as the leader
in innovative approaches to medical education.
Penn State College of Medicine was one
of the seven prestigious medical school selected to participate
in the New Horizon's program sponsored
by the Carnegie Foundation and the Josiah Macy, Jr. Foundation
to develop inter-professional curricula
for training medical and nursing students.
This is a collaborative effort between the College of Medicine
and School of Nursing.
And it focuses on teaching medical students
and nursing students to work together
as a team enhancing safety and quality of care.
And you'll have an opportunity to hear more about that
in detail later this afternoon.
Each year in March,
our graduating medical students learn
where they will complete their training on Match Day
when the National Residency Matches are announced.
Match Day happens to be today.
So if you heard some loud cheers coming from the other side
of Hershey earlier today, it was the sound
of our medical students celebrating
as they open their Match envelopes and learned
where they'll be spending the next 3 to 7
and in some case longer years
of additional training beyond medical school.
Where MDs complete their residency is a strong indicator
of where they will practice medicine
and we are enormously pleased that 27 percent
of our graduates will remain in the commonwealth
for the residency training.
11 percent will actually stay here
at the Penn State Hershey Medical Center.
Compared to other Pennsylvania Medical schools,
a significantly higher percentage
of our MD graduates remain
in Pennsylvania to practice medicine.
Training doctors who will serve our community is central
to our mission and a study that was conducted
by Dr. FitzHugh Mullan and his colleagues published
in the inter-- Annals of Internal Medicine in 2010,
ranked medical schools according
to how well they fulfilled a social mission.
These rankings were based on the percentages of graduates
who practice primary care.
The percentages of graduates who work
in health profession shortage areas and the percentage
of graduates who are underrepresented minorities.
Penn State College of Medicine ranked 29th
out of 133 schools nationwide and in the top three
in the Northeast United States.
I'm especially proud to note that we ranked 9th
in the nation overall for the inclusion
of underrepresented minority students.
Our students, therefore,
I believe have a very strong passion for community service
which is evident in programs like Lion Care,
student-run medical clinic for the homeless in Harrisburg.
Four years ago, our medical students launched a community
clean-up day known as "Kiss Hershey Back" that is
since become an annual event involving hundreds of volunteers
from throughout the community.
Our faculty and staff share our student's commitment
to service including medical missions as well
as other less traditional forms of outreach.
For instance, 2 years ago, our faculty
and staff led the successful establishment
of the new Farmer's Market here in Hershey
that emphasizes wellness as well as support
for local agriculture.
Our recent wellness efforts included outreach
of the Pennsylvania farm show where our staff volunteered time
to perform health education and screenings.
Over 1000 people had their blood pressures taken
at the farm show this year.
And we're partnering with other organizations
to advance health in the region.
At a CPR training event held last month
at Hershey's Giant Center, 300 people received CPR training
and many others took part in health education and screenings.
Hershey entertainment and resorts donated the use
of the Giant Center and we received support
from other entities here in the community.
Another important component of our mission is research.
Funding for research of the College
of Medicine has increased, as you can see on this slide,
over the past six years
and topped 105 million dollars this year.
This is in spite of increasing competitiveness
at the National Institutes of Health.
In 2007, 21 percent of all NIH project grant applications
were funded.
In 2011, that percentage has dropped to about 17 percent.
Meaning that on average, a researcher
who is devoted a considerable amount of their career
to prepare for submitting a grant has
about a 17 percent chance of success.
Those are daunting statistics.
Last year, roughly 70 percent
of our total sponsored research was supported by the NIH.
Every NIH dollar we receive translates into more
than two dollars of benefit in the surrounding community.
We've also been successful in securing support
from other funding sources including foundations,
nonprofit organizations and industry.
And we're particularly fortunate to receive state funding
for research through the CURE program created in 2001
to allocate a portion of the tobacco settlement funds
to biomedical research and infrastructure.
Penn State has benefited
from the flexibility the CURE funds provide
to give the opportunity to develop strategic initiatives,
attract new faculty like some I mentioned earlier
and better serve our community.
This funding has allowed us to recruit
and support world renowned investigators
who have brought substantial new research funding
to the commonwealth and who are making significant contributions
to development of new knowledge that'll help advance the
diagnosis, treatment, and cure, prevention of many diseases.
Last year alone, Penn State Hershey leveraged its CURE
funding to secure an additional 26 million dollars in funding
from the National Institutes of Health to support our investment
in clinical and translational research.
We remain hopeful that this funding remains dedicated
to biomedical research as it was originally intended.
We've established a number of new centers of excellence
in the recent years including institutes that combine research
and clinical missions such us our Bone and Joint Institute,
our Neuroscience Institute, and our Eye Center.
Our Clinical Simulation Center is recognized
as a national model for training students
and practicing clinicians
in ways they can improve patient's safety.
Our Global Health Center coordinates opportunities
for our faculty and students to take part in medical missions,
international service, and educational exchanges,
that something-- is something that more
and more perspectives students are looking
for when they choose a medical school
or health profession school.
Our newest academic department, Physical Medicine
and Rehabilitation was formed in 2010 and is based
at the Penn State Hershey Rehabilitation Hospital,
a partnership with Select Medical.
And the Penn State Clinical
and Translational Science Institute is one
of only 60 federally funded NIH centers in the nation,
focusing on accelerating the translation
of research discoveries and to improvements in patient care.
The Penn State Hershey Melanoma Center developed
with the philanthropic support
of the Forman Foundation is leading translational research
and clinical treatment of this most deadly form of skin cancer.
And our most recent additions are the Penn State Hershey
Center for the Protection of Children formed late last year
and the Penn State Hershey Institute
for Personalized Medicine established this month.
We're investing resources and technology transfer initiatives
that can transform these discoveries from the lab
and the clinic into innovations that can improve health
and also stimulate our state's economy.
We've already had a number of start-up companies connected
to the Penn State College of Medicine and our medical center
and we've also succeeded
in attracting new companies to Hershey.
The list here includes some of our faculty startups, including,
Apeliotus Vision Science, Apogee, ClawNor,
Melano Virus [phonetic], and Keystone Nano as well
as companies that have chosen to locate here
because of the advantages of our proximity that our campus offers
in terms of biomedical research course and infrastructure.
Most recently, a New Zealand company known
as Pacific Edge announced
that it would locate its US operations here and it expect
to create over a hundred jobs in Pennsylvania
over the next three years.
Earlier this month, the Pennsylvania Department
of Community and Economic Development awarded us an almost
half-- a 500,000 dollar D2PA grant to support executive
and residents programs that match scientists
with experienced business leaders who can provide guidance
and assistance in launching startup companies.
This program has already proven successful in helping one
of our faculty members, Dr. Gavin Robertson,
launch his company Melano Virus to develop therapies
for advanced melanoma.
In volume and in scope, the clinical enterprise,
our patient care enterprise is the largest component
of our mission, and provides a foundation for our research
and educational infrastructure.
Our patient care activities had grown in key areas
such as surgical cases and visits
to our emergency department,
hospital admissions have not grown as rapidly for reasons
that include the fact that our hospital is often full
and that there's also unfortunately a significant
number of "observation days."
These are days that patients who are already admitted
to the hospital but whose insurance later reclassifies
them as not being an inpatient
but an outpatient are reclassified after the fact.
So, in many ways, the numbers are staying steady
over the past several years.
But at the same time, as you saw on the earlier slide,
there is a significant trend towards more
and more outpatient care.
And as you can see here, outpatient visits are continuing
to increase at a very steady rate reflecting the changes
on how healthcare is being delivered not only here
in this region but literally across the nation.
The next slide shows our medical group outpatient sites
that existed in 2006, only 6 short years ago.
And as you can see, the demand
for outpatient services has grown significantly and with
that the number of sites that we provide care.
In addition to three new clinical sites in Hershey,
we've opened and expanded several other very large
practice sites and locations including Camp Hill
and a Lancaster and Redding over the past several years,
with many of these sites offering both primary care
and multiple specialty clinics.
All told, we now have 58 clinical practices
across this region.
Our network of clinical
and academic affiliates has grown even more significantly.
At the start of 2006, we had just a handful
of major hospital affiliates, six in all,
as well as an outpatient surgery center and an endoscopy center
that were the beginnings
of our Penn State Hershey health system.
Today, that number has grown to 17 affiliated hospitals spread
across a wide region in Pennsylvania.
These affiliations provide additional educational
opportunities for our students and give more people access
to the resources of our academic health center
through partnerships with local community hospitals
and regional health systems.
Our Penn State Hershey health system has grown
to include both the Pennsylvania Psychiatric Institute,
a joint venture with Pinnacle Health;
the Pennsylvania Hershey rehab--
the Penn State Hershey Rehab Hospital, a partnership
with Select Medical; and Horizon Healthcare Services,
a home healthcare company in partnership
with three other hospitals in the region.
Technology is further expanding what we can offer
to our partner hospitals.
In coming weeks, we'll be announcing a new telemedicine
program that will give emergency departments
at partner hospitals real-time access to consultations
with Penn State Hershey experts in a neurology and neurosurgery.
And that will allow for immediate evaluation
of stroke patients using a secure video connection.
Because when it comes to stroke, time is brain cells.
So this initiative shows the power of technology
in partnerships to save lives and improve the quality of life
for stroke patients throughout Central Pennsylvania.
Programs like this exemplify how Penn State Hershey
as an academic health center can serve the healthcare needs
of the entire region.
We're frequently recognized as a leader in the use
of electronic health records as well, and we've been recognized
as one of the nation's top 25 connected healthcare facilities
six times, most recently this past year.
Electronic records don't just replace paper records.
They enable us to actively identify ways
to improve the quality and safety of care.
And that's why over the past six years, we've invested
over a hundred million dollars in healthcare IT.
We're now in the process of rolling
out electronic health record to all of our 58 outpatient sites.
Next Tuesday, and we'll launch a new web date--
a new web based patient portal called My Penn State Hershey
Health, offering pilot enrollment and the use--
for use of patients in four state college
outpatient clinics.
The portal provides patients
with the secure online private access
to their personal electronic medical records.
Patients can manage their appointments,
review their medical records and exchange secure messages
with their healthcare team as well
as review selected test results online
at the convenience of their own home.
The patient portal is one component of the meaningful use,
a provision of the Federal Healthcare Reform Legislation
which provides financial incentives to hospitals
and physicians to use electronic medical records in ways
to improve the quality, safety, and efficiency of care.
Clinical activity in growth is closely linked
to financial performance and I'm pleased to report
that the medical center continues
to perform well financially.
That's important because the Medical Center is operating
margin plays a central role in supporting of the college
of medicine in our academic activities.
Each year a large portion
of the Medical Center's operating margin is used
to support medical students and graduates students as well
as graduate medical education and laboratory
and clinical research as well as other aspects
of our academic mission.
Especially now when other sources of support
for academic programs are threatens
such as federal support for graduate medical education
and residency training in states support for medical education.
It is vitally important for our financial performance
that we remain clinically strong.
The return on investment for this transfer is enormous.
It ensures the next generation
of healthcare professionals is well trained
and that we can conduct cutting-edge research
to discover new treatments and cures.
One of the financial challenges we face, is the inquiries
and the amount of uncompensated care, charity care
and the bad debt that we provide.
Over the past decade, the amount of uncompensated care we provide
through charity care and bad debt has increased steadily.
And in the past two years we've seen dramatic increases
in the amount of uncompensated care we provide.
Maintaining a strong financial performance in the face
of this trend is vital so that we can continue
to meet the needs of those who come to us
for care no matter what they're ability to pay.
We also reinvest a significant portion of our margin
in the capital improvements including new
and renovated facilities and equipment needed to keep us
at the leading edge of patient care, research, and education.
This slide shows the trend towards our capital plan
spending over the past several years and the reinvestment
of our dollars into our facilities.
The growth we've seen over the past decade is also driving us
to expand our facilities and to better serve region,
the financial margin helps to provide the support
for these new and renovated facilities.
Our facilities have grown tremendously
to keep pace with demand for care.
And once we open our new children's hospitals we'll
increase our square footage by over 50 percent
in just six year's time.
And that figure only includes our own Hershey Campus.
It does not include other locations
such as the Pennsylvania Psychiatric Hospital,
the Rehab Hospital and many
of the outpatient clinics we've added.
And these are just some of the photos of some
of these new facilities that have gone up end
up showing the increase in square footage
from roughly 3 million square feet of space just
on this campus to over 4.5 million square feet of space.
We've also renovated over a half a million square feet
on the Hershey Campus to build new in-patient beds,
new operating rooms, new educational space
such as our Clinical Simulation Center.
Our Penn State Hershey Children's Hospital will open
later this year as you heard from President Erickson
with a grand opening schedule for November 2012.
This state-of-the-art building is design
with family centered care in mind
and generous philanthropic support
from many sources has help make this building a reality.
We've been extraordinary successful as you heard
from President Erickson
in raising philanthropic support for our missions.
Private philanthropy supports all aspects
of our mission not just new facilities
such as the Cancer Institute or the soon
to open children's hospital.
But also teaching research patient care,
and very importantly scholarships and financial aid
for students who increasingly graduate
with significant amounts of debt.
And as you heard last year,
we surpass the 200 million dollar mark
in progress towards our 300 million dollar campaign goal.
So you've seen this picture before
and you've seen the video.
The amazing new record is totaled from THON
through the Four Diamonds Fund which goes
to the Penn State Hershey Children's Hospital.
Well while you've seen the numbers
and you've seen the video
of the dancers you may have not had a chance to meet any
of our Four Diamonds families before.
So I'd like to conclude
by introducing you to the Broda family.
Michael who is Four Diamonds patient, his Mom and Dad,
Gail and Mike, and her sister Lisa are here with us today.
The Broda's live here in [inaudible].
I'd like to introduce to all of you.
Michael maybe you could stand up with your family?
[ Applause ]
>> Thank you.
Michael Broda was a 14-year-old high school freshman
in the spring of 2008 when he was first diagnosed
with Hodgkin's lymphoma.
Many of you know this is a very treatable cancer
in most patients.
Unfortunately, Michael was one of the 1 percent
of Hodgkin's patient whose disease did not respond
to the usual first line treatments.
And after 3 months of chemotherapy
and another 3 months of radiation,
Michael was still battling cancer.
He underwent a stem cell transplantation,
spending his entire-- almost his entire 10th grade
in our hospital.
Through it all, Michael's family found comfort and reassurance
in knowing that the Four Diamonds Fund was there
for them.
Gail has described it as "a huge safety net."
That meant that they didn't need to worry about bills
that their insurance wouldn't cover allowing them to focus
on allowing Michael to get well again.
The family was grateful for the many services supported
by the Four Diamonds Fund including a dedicated pediatric
oncologist social worker as well as music therapy
at our Children's Hospital.
In fall 2011, Michael relapsed again.
He's currently undergoing chemotherapy, taking a new drug
that has just been approved and he is responding well.
Now 19 years old, Michael was a proud ambassador
of our Four Diamonds Fund
at the Penn State Hershey Children's Hospital even
as he continues his fight.
His band played at THON this year as a way
of giving back to the dancers.
He's taking classes through Penn State's World Campus
and he plans to attend Penn State Harrisburg next year.
Michael thank you to you and your family for being with us
and for letting us share your story.
As a Broda family story tells us
and the video you saw earlier illustrates,
the Four Diamonds Fund enables us to provide superior care
to all children who are battling cancer
at our Children's Hospital to provide comprehensive support
to those children and their families by paying
for all medical expenses
for their cancer treatment not covered by insurance
and by connecting the children and their families
to a caring community which provides essential emotional
and social support and to fund innovative research,
to find groundbreaking new treatments and cures
for a child with cancer.
Ultimately, families is like the Broda's are why we are here,
to provide exceptional care to conduct the research that leads
to better treatments and cures
and to train the future generations
of health professionals who will carry on this proud tradition.
Thank you all so much for the opportunity to update you
on the Penn State Hershey Medical Center.
[ Applause ]
[Inaudible Remark]
>> Thank you again Michael and the Broda family.
Thank you for joining us.
And do we have any questions for health?
>> I'm interested in the two institutes that are most recent
on the list that you put up there, one was the Protection
of Children and Personalized Medicine, would you be willing
to elaborate on those two?
>> Alright, be pleased to do that.
The-- This Penn State Hershey Center for the Protection
of Children was developed in December as a response
to the tragic events that we're all too familiar
with last November.
We're very fortunate to have among our faculty
at our Penn State Hershey Children's Hospital one of less
than 200 board certified child abuse pediatricians
in the country.
Dr. Andy Toroli [phonetic] and with her
and with several other faculty and healthcare workers,
we quickly assembled a group to move forward
in providing advocacy services, clinical care,
direct clinical care as well as opportunities
for research and education.
This group is working collaboratively
with other Penn State colleges including the Dickinson School
of Law and faculty University Park
to advance this important initiative.
And one of the first areas of emphasis is actually
in direct patient care, direct clinical services.
So we're please and delighted to be able to move forward.
We're having our inaugural event next Thursday and we're pleased
to have Dr. *** Krugman who is the Vice Chancellor Dean
at the University of Colorado and nationally recognized expert
in the field of child abuse be our keynote speaker.
The other institute-- the ins-- the Penn State Hershey Institute
for Personalized Medicine
which we announced earlier is a basic science research institute
led by Dr. Jim Broach we recruited from Princeton
which emphasizes looking at underlying causes
of disease particularly genetic and genomic causes of disease,
and then identifying-- excuse me--
treatments and cures that are tailored
to that specific disease.
Right now we know that many of the treatments we offer patients
in general don't work in some cases
because of a person's genetic makeup.
One example I've used over and over again is
when I see patients in pulmonary clinic on Wednesday afternoons,
I know that in about 20 percent
of the cases they will not respond
to standard asthma medicine
because of their genetic profile.
If we know what their genetic profile is, we'll stop using it
in that 20 percent and we'll use a drug that will help them
and will be cost effective.
And that's the promise that Personalized Medicine offers.
It's about individualizing care based on basic science research.
Thank you.
>> Thank you.
>> Yes.
>> How about with regard to--
I know we heard on our tour that they had shared with us
that ever year there's about a hundred new patients, child,
children that are diagnosed with cancer that are treated here.
With the Four Diamonds Fund is that available
to all families that are here or?
>> Yes. Yeah.
And I should have also mentioned that through THON
and the Four Diamonds Fund, the Pediatric Oncology Center
which is an out-- which is an outpatient center
in the Children's Hospital was funded in part by THON
to in fact make sure that we have a facility for children
and their families to have active treatment.
It's the only outpatient facility
in the entire Children's Hospital building and it was
through the generosity of the THON students
through the Four Diamonds Fund they were able to this.
>> Dr. Paz, the tour was excellent today [inaudible]
indicated, it's really good to see the project part way
down you can get a sense of the enormity of it
and all the technology and construction work which goes
into it and we wish you good luck with the final stages
and with the grand opening.
When it's finished and fully staffed and operating,
how many children are going to receive care in the new facility
that would either have not received care at all or had
to have gone someplace else,
[inaudible] basis or monthly basis?
>> So we, we've have around one million children
in the Central Pennsylvania region that we provide care to
and we have the opportunity to receive care.
And one of our focuses has been
to build a state-of-the-art facility
that literally matches the state-of-the-art programs
that have been available for some time.
What's unique here in this region is
that this hospital provides everything
from the most basic primary care and preventions.
I gave you one example that before through our Center
for the Protection of Children all the way
through the [inaudible] of sub-specialized care.
This is a Level 1 pediatric trauma unit.
We run a very large [inaudible], for example,
we have transplant programs
and highly specialized surgery programs.
So these are services that will be available.
The bed count in this new building is actually
about the same as the current bed count
at the Children's Hospital on the 7th floor.
And that's because we recognize
that the way the care is being delivered is changing rapidly
and less and less patients need to be in the hospital,
more and more of the care is being provided
in the outpatient setting.
So more and more of our specialty pediatricians,
be they cardiac surgeons or nephrologists just
about any specialty you can think
of are actually providing care out in the community many now
at other community hospitals to bring
that care as close to home.
The children that will be
in this Children's Hospital are unfortunately the sickest
of the sick.
And that's I think really at the end
of the day any parent would only want their child to have to be
in the hospital, that they needed those kinds of services
and otherwise would prefer to have them home.
So that's really the vision for this Children's Hospital
and it really emphasizes where we've put our investments
in these programs over the past several years.
Yes?
>> One more question?
Keith?
>> Back to your-- When I look at the growth
and perhaps my evaluation is wrong, but it appears
that the Hershey Medical Center
over the last 10 years has grown 3-1/2 to 4 times.
If that's accurate, do you--
do you see a limitation
on how much growth you can manage going into the future?
I mean that's an amazing number for any operation.
>> It's a great question.
I have to try to give a very brief answer.
Keith, the way we will deliver care in the future will be very,
very different than it is-- than it was 10 years ago
and even that it is today.
It will be about a continuum of care, and really reflects
that one slide I showed with all the affiliated hospitals
and all the practice sites.
Many of our graduates live here in Central Pennsylvania and many
of our private practice were working at other hospitals.
We want to be successful doing what they're doing.
But we want to add value to their practices
and to the hospitals they work at by being able
to create a continuum of care so that patients can stay as close
to home as possible and only come back here to Hershey
if they're seriously, seriously ill.
That way no one has to leave this region to go
to some large metropolitan area be it in Baltimore or Boston
or New York or whatever to have access to care, because diseases
like pediatric cancer, heart disease,
stroke, don't travel well.
And if we can keep our patient's close
to home then not only are we improving quality of lives,
are we helping families were now many--
both parents are working whether extended families all living
together, we create real opportunities
for improved access and hire quality as well
so the changes you're going to see are going to be much more
about creating this continuum of care and focusing
on both outpatient services hopefully shorter
and shorter stays in the hospital and post-acute care
in places like our Penn State Hershey Rehab Hospital
or receding home infusion
through our horizon home infusion company where we'll go
to your home and give you the treatment there because,
you know, that's where patient much rather be.
Thank you.
>> Questions?
>> Thank you.
>> Thank you.
Okay, proceeding with our agenda, we'll continue
by having the reports of the Standing Committees.
As noted in the agenda, there are several changes proposed
to the current standing committee structure
and we'll discuss those a little later.
As the result, however, the Committee
on Campus Environment has not met and there is no report.
Moving on to the Committee on the Educational Policy,
in the absence of the chair and vice chair of the committee,
I will serve as the acting chair in my capacity
as chairman of the Board.
I'd like to note that the quorum of the committee is
in attendance at this time and I will not call the roll.
Information is contained in the agenda regarding undergraduate
and graduate programs.
Additionally, information was included regarding the proposed
reorganization of the Department of African
and African American Studies and a change in the name
to the Department of African-American Studies
in the College of the Liberal Arts.
The renamed Department
of African-American Studies will more accurately reflect a focus
on African-American topics,
while the African Studies Program will be created
as a separate, budgeted unit.
A resolution was included in the agenda
and I will entertain a motion from the committee
on Educational Policy for its adoption.
Thank you, Sam.
Is there a second?
>> Second.
>> Okay, thanks.
Any discussion?
All in favor signify by saying "Aye."
>> Aye!
>> Any opposed?
Okay, thank you, the motion is carried.
Continuing with our education of all things Hershey,
we're very excited to hear about the education of our students
and Interdisciplinary Health Science Education.
At this time, I'd like to ask Dr. Richard Simons,
Vice Dean for Educational Affairs;
and Dr. Mary Beth Clark, Assistant Professor of Nursing
and Hershey Campus Coordinator,
to review the subject matter with us.
Please?
[ Noise ]
>> Thank you Chairwoman Peetz.
It's a pleasure to be here with you this afternoon.
I just returned about an hour ago
from our Match Day Celebration over at the Hershey Country Club
where I handed out the envelopes to all of our students
who will be graduating.
It's always a great time and thanks
to the Penn State Alumni Association,
we can have this celebration at the Hershey Country Club
that used to be in lecture room A.
So this is a great improvement.
So it's a not-- it's a-- it's a really privilege to be
with you this afternoon to give you a little taste
of inter-professional education which is really a growing
and exciting trend in medical education.
And as you will hear later, I'm happy to report
that Penn State is an early adopter
and a leader in this initiative.
So what is inter-professional education?
Here is a definition from the World Health Organization.
When two students from two or more disciplines learn
about from and with each other
to enable effective collaboration
and improve health outcomes.
It seems like this is a no-brainer.
But I will tell you traditionally
in medical education, medical students were trained in silos,
nursing students are trained in silos, and if they met it was
by sure-- shear happen stance and this is changing.
The goal of this initiative, which is really becoming more
and more common around the country,
is that if we train students together deliberately,
we believe that they'll be more likely
to work together and practice.
And I don't think I have to tell anybody here
that healthcare is really a team effort more
than ever considering the growing nature
of our populations in the aging population and the complexity
that we're seeing in our patient both in the outpatient setting
and inpatient setting.
This is a graph that just a picture
that depicts an outcome over here.
That depicts our healthcare having--
if you look at this graph starts at--
this is a fragment in healthcare system.
The goal is to have inter-professional education
which will lead to collaborative practice.
And at the very top, we're going
to have a very integrated healthcare system.
And so this aspect of inter-professional education
and this doesn't mean just nursing students
and medical students.
This means nursing students, medical students,
physician assistants, pharmacy students,
physical therapy students, all working together
in their education so they'll be ready to practice together
when they're out in the real world.
This is from the Institute of Medicine.
These are the five competencies that are important
for all health care professionals.
I think at Penn State Hershey we are on target on many of these.
Utilize informatics which we're doing [inaudible] electronic
health record.
Employ evidence based practice which we are attempting to do
in both our medical student and nursing education curriculum.
Provide patients centered care has always been a goal
of the Hershey Medical Center.
We're focusing now more than ever
on applying quality improvement but in the Center is working
in interprofessional teams.
Today, I've started my day by rounding on 14 patients
in the inpatient service and I would tell you,
it's more important than ever that we have a team
of individuals working together
to provide care for our patients.
There has been an effort nationally.
Many of the groups have come together, the Association
of American Medical Colleges, the professional organizations
in nursing and pharmacy
and other organizations have come together
to define what we call core competencies
for interprofessional education.
They include values and ethics for interpersonal prac--
interprofessional practice, clarifying the roles
and responsibilities between nurses, physician's assistant,
physicians, interprofessional communication
and teams and teamwork.
So in addition to learning all
of the fundamental basic science, we now are trying
to make sure that our--
all of our health care students are learning these important
interprofessional competencies.
And so the mandate now is that it's no longer useful
for health workers to be professional.
In the current global climate, as this slide says,
health workers also need to be interprofessional
so that we can work together collaboratively.
So this interprofessional education is a growing area
of intense research in medical education, in nursing education
and I'm going to turn now the podium over to Dr. Clarke.
She's going to describe a few initiatives here
at the Penn State Hershey Medical Center.
We're really making some strides in this area
of interprofessional education.
Dr. Clarke is one of our nurse educators here.
She really directs and leads our Hershey Medical Center Campus
for our nursing students, so Dr. Clarke.
>> Good afternoon.
Thank you for including us in the agenda today.
We're happy to share our work with you.
To start out with, the first initiative I'll talk
about is the interprofessional curriculum
and quality improvement for medical and nursing students.
And this initiative came about as a result of a grant obtained
by Dr. Paul Haidet and myself from the Institute
of Healthcare Improvement and the Josiah Macy, Jr. Foundation.
What they were looking at was looking
at to see how we could retool education,
to have it more interprofessional,
both from the medical and the nursing standpoint.
The request for proposal came out and went nationwide.
They wanted proposals from both the School of Nursing
and the sch-- College of Medicine
that could work together on an endeavor.
Fortunately, there were about 40 proposals submitted
and Penn State was 1 of 6 that was selected
to be part of the project.
Our goal basically was to create
and to evaluate an interprofessional curriculum
in quality improvement concepts.
The sessions in the curriculum had several objectives related
to improving student's knowledge of concepts toward quality,
safety and patient safety, providing a foundation
for their thinking about clinical issues
from a system's perspective, not just an individual perspective.
And, for realizing the potential benefits
of using mixed nursing-doctor teams to solve problems.
We actually did these workshops here at Hershey
in the Medical Center.
We used Junker Auditorium for our site for the sets.
The workshops use based--
team-based learning which is a well-established method
and incorporates both small group discussion
and large group discussion.
It has a high degree of student collaboration and it's very good
at engaging students into the topic
that you're trying to cover.
This graph-- excuse me, I forgot I should've mentioned this,
when we had our teams, we had students
that were 4th year nursing students
and 1st year medical students.
We had a disparity in numbers.
We had 145 medical students and only 51 nursing students.
So we divided our teams
into half were medical student only teams
and the other half were the combination
of nursing students and medical students.
After they-- we went through the workshop,
did all of the case studies.
As this graph demonstrates, the students participating
in the interprofessional groups had a higher perception
of the values of teams as opposed
to the medical student only group.
In fact, from 1 workshop until the next,
the medical student only group actually declined slightly.
So, I think it further validates
that interprofessional education is really the wave
of the future.
In conclusion, we developed a curriculum
in quality improvement and concepts
for medical and nursing students.
We demonstrated that students perceived an increase
in knowledge and attitudes about quality and safety concepts
and that attitudes toward the values of teams improved
for students who are on the interprofessional teams rather
than just the medicine only teams.
However, even at this early stage of education,
attitude differences exist between nursing
and medical students that really mirror those
that have been shown to occur among practicing physicians
and nurses in the clinical settings.
So, more work needs to be done to understand the development
of these attitudes and the way that we can have an effect
on mitigating and navigating these attitudes
on an individual basis.
This is just a qualitative statement from some
of the students that were-- that one student specifically
that was part of the workshop that basically, they--
it was helpful for them to come together as students
because they came in with basically perceptions
that really did not turn out to be
as they thought they would be at the end.
They basically understood each other more
after having collaborated in the workshops.
This slide is-- it's actually a replica of a poster
that had its genesis
in the Carnegie-Macy Foundation workshop
that we attended in June 2010.
And what-- basically what this slide shows is
that we did interprofessional workshop and we looked
at not patient safety and quality issues, we looked at end
of life issues because when you look at teamwork of caring
for patients who are in palliative care
or end of life situations.
Teamwork is very, very essential.
What the-- this group was a 4th year medical students and a mix
of junior and senior nursing students here on this campus.
And what they explored here was the attitudes and the feelings
of the students as far
as participating in these workshops.
They did a lot of qualitative analysis
and actually brief conclusions where that students emerged
from both med-- they emerged from both medicine
and nursing school with role expectations not only
for themselves but for other members
of the clinical team as well.
The students felt that the interprofessional education
course tended to promote respect between the groups and also
to humanize each other's educational experiences.
They seem to better understand what nursing education is about,
what medical education is about, what the similarities are,
what the differences are,
but yet how they can all work together
to make a better health system.
For the future, we have
to explore transferring this knowledge
into the clinical area.
And actually, this coming fall at University Park,
there will be an initiative that we'll have grand rounds
and the participants will be the medical students who are
on rotation up at University Park as well
as our graduate nurse practitioner students
in the School of Nursing who will also be at University Park.
They are going to have grand rounds, 3 per semester.
And they are going to look at the results
of interprofessional education in the clinical setting.
So, they are going to start focusing more
on the clinical area as we are down here and I'll turn
that over to Dr. Simons to explain.
>> So in conclusion, we hope to advance this initiative
by identifying and developing patient care units
where team coordinated care is taking place
to a very high level and start having the medical students,
nursing students, pharmacy students
and our future PA students interact more often.
We want to develop more of these interprofessional activities
for all of our health care learners on this campus
and we also want to develop specific clinical activities not
only inpatient unit but in the outpatient unit.
For instance, we're developing a patient-centered medical home
rotation for our medical students whom we
like to also integrate nursing students.
You might ask, "Why aren't you doing more of this?
This seems like such a-- an easy thing
that you should be able to do."
I would say first of all we are pleased that we have the support
of our Dean in the Medical School, Dr. Paz and the Dean
of the Nursing School, Dr. Paula Milone-Nuzzo.
Many colleagues at other institutions want to do this.
but they're-- they don't have the support of their deans
like we do so we've been blessed with the support
of our senior leaders.
We need to find teaching place.
The only place that we could get the nursing students
and medical students together on our campus was
in the Junker Auditorium.
There's no other place on this campus
that would fit our medical students
and nursing students together in one room.
Scheduling logistics, it's hard enough
to schedule our medical students with classrooms.
When you try to schedule nursing students, medical students
and physician's assistant all together, it's a real challenge
and we've been able to do
that successfully whether medical students
and nursing students.
And also, in the clinical environment,
today I started our rounds on the 2nd floor
and we had patients on the 2nd, 3rd, 4th, 5th and 6th floor
to try to coordinate all of those rounds
with dedicated nurses
and nursing students as a real challenge.
So there some very real practical barriers
that get in the way.
And also, there's a perception among some of our students,
perhaps more the medical students that this is,
"the softer stuff" that doesn't matter as much
as the hardcore medical science.
And so, those are some of the challenges that we face,
but they're not unique to the Penn State College of Medicine
and the Hershey Medical Center.
All academic medical centers face these challenges.
So we hope that we enlightened you a little bit today
on this important education initiative
and I'll turn it back to our chairwoman.
>> Any question?
Questions [inaudible].
Okay, you did such a great job.
Thank you very much.
>> Thank you.
>> Thank you.
>> Yes, thank you.
[ Applause ]
>> Hey, thank you Dr. Clarke and Dr. Simons.
Alright, there being no other items
to come before the committee on educational policy,
that committee is adjourned.
The committee recommends to the full board the adoption
of the resolution projected on the screens.
As a reminder, the full board is in session.
From the full board, may I have a motion for approval?
Thank you.
Second?
>> Second.
>> Okay, any discussion?
All those in favor please indicate by saying aye.
>> Aye.
>> Alright, any opposed.
Okay, the motion carries.
Now, I'd like to call Chair Linda Strumpf for a report
from the Committee on Finance and Physical Plant.
>> Thank you Chair Peetz.
I'd like to know that a [inaudible] of the committee is
in attendance at the meeting.
Since our last meeting, the committee received a briefing
on Penn State's capital planning,
design and construction process from Ford Stryker
and Lisa Berkey of the Office of Physical Plant.
What was particularly interesting I think
to the committee was the use of new technologies
and also the role of the Board of Trustees
and the process along the way.
The other items I think that the committee found particularly
interesting was the real need and you're going
to see this later for some really significant renovations
in both our academic and dorm buildings
in not only University Park but around some of the campuses.
You'll hear more about that later.
There are several items for information or action
by the committee at this time and you'll need
to have you're materials with you.
Agenda item 1 is with in regard to the Consent Agenda
which is shown in Appendix II.
And just to remind you,
the Consent Agenda are often projects that are under value
of 5 million dollars, so that is by consent.
So the only things we're voting on right now are O and P,
so may I please have a motion to approve action items O and P
in the Consent Agenda, that's revisions
to existing scholarships and acknowledgment of endowments
and other major commitment, so can I have a motion.
Second? All in favor?
Aye, opposed?
Thank you.
Agenda items 2, 3, and 4 are proposed namings
at University Park.
Agenda item 2 proposes to name the replacement
for South Henderson Building to Health and Humans--
Health and Human Development Building.
Agenda item 3 proposes to name 7 structures
and the road associated with the new physical plant greenhouse
facilities as listed in Appendix IV.
And agenda item 4 proposes to name the new lacrosse field,
the Penn State Lacrosse Field, sounds logical to me.
So may I please have a motion to approve agenda item--
well if we named it the field--
hockey field, it wouldn't make much sense.
May I please have a motion
to approve agenda items 2, 3, and 4.
Second? All in favor?
>> Aye.
>> Opposed.
Thank you.
Agenda items 5 and 6 are proposals for appointments
of architect for renovation projects at University Park.
Agenda item 5 is what-- with regard to Steidle Building
and agenda item 6 is for Mueller and Whitmore Laboratories.
At this time, I'd like to call on David Gray
to present these items, David.
>> Thank you Linda.
Steidle Building is located
in the historic core campus near the intersection
of Burrowes and *** roads.
This 86,000 square-foot building was built in 1931
with an addition added in 1938.
Steidle Building was designed by Charles Klauder,
the architect who's had the greatest impact upon the
architecture of Penn State's core campus.
It houses the College of Earth and Mineral Sciences,
Department of Materials Science and Engineering,
one of the premier departments in this field in the world.
This research intensive discipline requires
that undergraduate students participate
in independent research projects.
Therefore, Steidle Building spaces serve 2 primary
functions, teaching and research.
Most of the outdated labs
in Steidle no longer have the utilities or functions needed
for modern material science.
The original laboratory benches are at or near the end
of their useful life cycles.
Cramped conditions have led
to improvise research and office spaces.
This is a privacy issue when students meet faculty
or when faculty are discussing sensitive research.
Some areas at the building are supplied
with insufficient electrical capacity.
Some electrical equipment
in Steidle is no longer manufactured.
Used or repurposed existing equipment is used for repairs,
but this is a serious concern for the future.
There is an imminent need
to replace failing mechanical systems in Steidle.
For example, water supply lines are leaking more
and more frequently.
Due to faulty water supply valves, discrete areas
of the building cannot be shut down for repairs.
Last summer, a leaking faucet in Lab 12 required the shut
down of the entire building water supply.
Heating ventilation and air conditioning units are failing
or unable to provide the environment necessary
for modern day material science research.
Some research is delayed in the summer because of humidity
or temperature fluctuations.
Some comments from researchers
in Steidle Building highlight the conditions.
"My program has been hampered by the lack of adequate facilities
and lab space which costs time in a fast paced field
and puts us at a disadvantage for attracting new federal
and industrial funding."
Robert J. Kumpf, currently Chief Operating Officer of Plextronics
in Pittsburgh says, "For Penn State Material Science
and Engineering to be fit for the future, it is important
that the students have access to the best equipment
and the best facilities.
The current situation
with Steidle Building does not meet these criteria."
Gary L. Messing, Head of the Department notes that,
"The Department of Materials Science and Engineering is
at a tipping point, with half of the faculty, 10,
located in Steidle Building, researching retirement age--
or reaching retirement age in the next 5 years.
Our ability to recruit the best young faculty will have a
long-lasting impact on whether we remain one
of the best Materials Departments
in the nation and world."
The goal is to renovate Steidle Building and
yet to preserve the architectural significance
of the structure.
The design team will reorganize new lab and office areas
into suites called Research Clusters that are more open,
collaborative and conducive to current
and future program goals and objectives.
These clusters will support a variety of materials science
and engineering research.
Modern labs and utilities will improve our competitiveness
and winning research contracts
and recruiting top faculty and students.
The building's mechanical systems will be replaced
and utility infrastructure
to the building will be upgraded including connecting the
building to the campus chilled water system.
In keeping with our commitment to environmental sustainability,
we expect that this facility will attain lead certification.
The renovation of Steidle presents several unique
opportunities to advance Penn State's national contribution
to materials science and engineering research.
To attain this goal, the designer
of these labs must have the required advanced experience
and a proven portfolio.
Expertise in the phase replacement
of the infrastructure systems is required.
A unique challenge is to accomplish
that while the building is partially occupied
to avoid interrupting ongoing research.
Finally, the architectural team must have proven expertise
in the renovation
of historically-significant buildings such as Steidle.
Based on these considerations, we recommend the appointment
of EYP Architecture
and Engineering PC of Albany, New York.
This team will validate the program,
develop a schematic design into phasing strategy
and will complete designs for each phase
as funding is available.
Each phase will be advanced for approval
when construction funding becomes available
and the following slides show examples
of the firm's previous work.
The first example is the Patricia E. Harris Center
for Business, Government and Public Policy of Franklin
and Marshall College in Lancaster, Pennsylvania.
This is an interior shot
of the Metcalf Science Building renovation at Boston University
in Boston, Massachusetts.
And this is the Silver Center Complex at NYU in New York City.
The subcommittee
on Architect/Engineers selection recommends the appointment
of EYP Architecture and Engineering PC of Albany,
New York as architect for the design
of Steidle Building renovations at University Park.
The next architect appointment is for Mueller
and Whitmore Laboratories renovations.
Mueller and Whitmore Laboratories are located near
Paterno Library between Curtin and *** Roads.
Mueller Laboratory is 7-story structure built in 1965,
houses the Penn State Biology Department,
known as 1 of the top research biology departments
in higher education in the world.
With an enrollment of over 1,000 students,
the biology major is the largest and most popular
in Penn States Eberly College of Science.
In addition, the biology courses are popular
for general education requirements.
The biology department instructs over 8,000 students annually
within the instructural lab spaces in Mueller.
Whitmore Laboratory, a 3-story building constructed in 1953,
houses chemistry laboratories
for undergraduate introductory and advanced studies.
Almost 7,000 students from merely all colleges
at the university are taught in these spaces annually.
Biology has had a long-term space deficiency in the number
and quality of undergraduate biology teaching laboratory
spaces in Mueller.
This has limited the number of sections offered,
overcrowded current labs and adversely affected the types
of courses and experiences needed
for modern biology instruction.
The original laboratory benches and related equipment are at
or near the end of their useful life cycles.
Our students must currently squeeze between tables
and equipment often sitting on top of tables
because there's no space to collect data or gather
around low tables leaning awkwardly
to perform experiments.
Because of inadequate facilities,
students with interest in medicine
and other health fields must travel to a community college
in New York to work in a cadaver laboratory.
A comparison with University of Minnesota revealed that we offer
about 86 percent of the biology lab sections per year as they do
but have only 19 percent of their facilities.
Whitmore Laboratory has not materially changed
since its construction in 1953 and shows the wear
and tear of intense use.
Presently, all instrumentation activities take place
in one room that is shared by all 1st floor lab classes.
These places have tremendous pressure on students
to complete their required work in a limited timeframe.
Because there are no fume hoods in the 1st floor teaching labs,
students cannot set up projects with significant vapors.
As noted by Dr. Joseph Keiser,
Director of General Chemistry Labs,
"A general chemistry lab experiment is common
as dissolving copper and nitric acid cannot be safely done
in our labs.
Typical general chemistry labs will have a bank
of hoods, but we have none.
By comparison, the University of Michigan has 12 hoods
for each lab of 24 students."
The mechanical, electrical and plumbing systems
in both buildings are deficient.
Electrical service to the lab benches is not robust enough
to support the equipment that today's science requires.
The priority for the Mueller renovation is
to improve existing instructional biology
laboratories and to create new undergraduate teaching labs
for the base courses on the 1st floor.
Anatomy and physiology teaching lab spaces will be relocated
and expanded and the new cadaver lab will be created
that will support biology and other science disciplines
such as nursing and kinesiology.
In addition, adjacent support spaces will be improved.
All existing antiquated laboratory equipment will be
replaced such as autoclaves.
The priority in Whitmore is
to renovate all undergraduate instructional labs.
The scope of this renovation includes building system
upgrades such as HVAC, mechanical and plumbing
in both Mueller and Whitmore.
This project presents several unique challenges
that require specific experience and advanced expertise.
First, the design
of state-of-the-art science teaching labs
that include the flexibility to remain cutting edge
for decades is required.
Second, significant experience is required
in the phased integration of a complex network
of new mechanical systems into an existing building
which is a very large portion of the project scope.
And finally, these renovations must be accomplished while the
building is occupied, full of students
to avoid interrupting teaching and experimentation of science.
Based on these criteria, we recommend the appointment
of Stantec of Butler, Pennsylvania.
This team will validate the program,
develop a schematic design and a phasing strategy
and will complete designs for each phase
as funding is available.
Each phase will be advanced for approval
when construction funding becomes available.
The following slide show examples
of the firm's previous work.
The first example is the Doherty Hall renovation
at Carnegie Mellon University in Pittsburgh, Pennsylvania.
This is the exterior of Gerstacker Science Hall
at Hiram College in Hiram, Ohio.
And this is a chemistry laboratory renovation
at Marist University in Poughkeepsie, New York.
The subcommittee on architect engineer selection recommends
the appointment of Stantec of Butler, Pennsylvania
as architect for the design of Mueller
and Whitmore Laboratories renovations at University Park.
Thanks, Linda.
>> Questions [inaudible].
[ Pause ]
The resolution regarding item 5 is included
in your meeting agenda and the resolution concerning item 6 is
shown on the screen.
Will the Committee on Finance
at Physical Plant recommended adoption
of the resolutions regarding item 5 and 6.
May I have a motion, please.
Second, all in favor?
>> Aye.
>> Aye, opposed?
Motion carries.
Agenda item 7 is a proposal for final plans and authorization
to award contracts for the addition and renovation
of South Halls at University Park.
I'd like to call in David Gray to present this item, David.
[ Pause ]
>> Thanks Linda.
South Hall and Redifer Dining Commons are located near the
intersection of College Avenue and Shortlidge Road.
The 4 buildings that make
up the South Halls complex provide housing to more
than 1000 students including half of Penn State sororities.
They were built in 1957 and have had no significant renovations
or changes since that time.
The facilities are clearly outdated;
no longer meet the expectation of today's students and parents.
Differed maintenance projects had been delayed in anticipation
of a planned renovation to South Halls.
For example, windows had begun to fall--
to fail at increasing rate despite our best efforts
to repair hinges.
In several cases, the windows break from their mounts.
Over 25 percent of the window units
in the student rooms have had 1
of their windows permanently secured shut.
In cases where both windows fail, we replace the entire unit
at a cost of 1500 dollars per room.
To date, we have spent approximately 250,000 dollars
to repair or replace these failing windows.
Over the last 2 years, the area has experienced numerous
failures to the domestic hot and cold waterlines
and the heating system.
Just this past month, one
of the heat exchangers providing service to several buildings
in South Halls failed.
We have been closed on 2 occasions
to losing domestic water to one of the buildings due
to the aging waterlines.
If we were to lose domestic water to a building
and it could not be patched, we would need to displace
over 220 students and spend approximately half a million
dollars to re-plumb the entire building
which would take several months.
We average approximately 50,000 dollars each year to patch
and repair this system.
Because of leaks and plumbing lines and problems
with shower drains, bathroom floors, labs are failing.
If the overall renovation project is delayed even
for a year, we will need to seal the floors at the cost
of 6,000 dollars per bathroom.
This would be a very temporary fix to keep water
from deteriorating the floors further.
When we have bathroom failures given the location
of the plumbing, we need to take the adjacent student rooms off
line in order to complete the repairs.
The conditions at South Halls are impacting the comfort
of current students and the perception
of prospective students and their parents.
Negative feedback from visiting parents during a Spend A Summer
Day Event has become typical.
For example, parents have said, "I can't believe
that the quality of the dorm we visited is typical," and,
"The rooms appeared uninviting, small, old, and depressed,"
as well as, "Freshmen housing was so unsatisfactory,
my child may not even apply based on that alone,
worst dorms we have seen in 6 universities."
The renovation of South Halls has been put
on hold multiple times due to the uncertain financial climate.
In March of last year, you appointed the firm
of Barton Malow to design the full renovation
of South Halls including new energy efficient systems
and new roofs.
This renovation will create 32 living learning communities
and will enable us to move all
of our sororities into 1 complex.
The addition of air conditioning will enhance our summer housing
and conference operations.
As a part of our strategic facilities plan for housing,
we have developed a plan to install security cameras,
at key building access points.
In addition, we plan to incorporate wireless card access
into each room within the residence halls.
Therefore, this renovation project provides the most
cost-effective opportunity
to implement our security plan in the South Halls.
As you know, the South Halls Complex
and Redifer Commons is considered the least attractive
and least accessible portion of our boarder with College Avenue.
This project provides an ideal opportunity
to improve this highly visible town gown edge.
The entire site drops an average of 35 feet
from McKean Road to College Avenue.
Because of this topography, the north side of the ground floor
in each building is below grade, while the south side
of each ground floor is above grade.
Each of the 4 existing buildings is composed
of a pair of residence halls.
Each hall includes a ground floor and 4 upper floors.
Our presentation will begin with the ground floors,
first Haller-Lyons and Ewing-Cross,
followed by Cooper-Hoyt and ending with Hibbs-Stephens.
Our tour will continue with the typical first floor
which is common to all buildings.
And finally, we'll quickly tour a typical upper floor layout
which will be implemented for all upper floors
in all existing buildings.
We begin here with the ground floors of Haller-Lyons
and Ewing-Cross because they are mirror images of each other.
Most of the mechanical storage
and support spaces will be located
in the below grade section of the ground floor.
A lounge or extra bedroom
and a 2-bedroom staff apartment will be on the south side
which is in the above grade section.
The remaining spaces include bathrooms, elevator,
stairs, and support spaces.
The ground floor of Cooper-Hoyt contains 12 bedrooms, a lounge
or extra bedroom and similar support spaces.
A portion of the ground floor in Hibbs-Stephens is unexcavated,
the occupied portion
of the floor will include 2 staff apartments, a lounge,
and all of the building's primary mechanical
and support spaces.
The first floors of all existing buildings
in South Halls will be configured
in the similar fashion.
All main entrances lead to the lobbies
and sorority meeting rooms.
Each wing will contain 14 bedrooms
and reconfigured private bathroom clusters as well
as storage, support spaces, elevators, and stairs.
Each sorority will have a sorority suite configured,
configured with a kitchenette, dining, and a living area.
The 2nd, 3rd, and 4th floors
of all 4 buildings will be identical.
They will include 34 bedrooms,
individual bathroom clusters, and sorority suites.
To meet the current industry standard,
residence hall gang bathrooms will be replaced
with individual bathrooms.
Piping and duct work for new building mechanical systems will
be accommodated in these new enclosures
on the building exterior.
A comprehensive study of Redifer Commons operations recommended,
"In addition to create private dining spaces for sororities
and other student groups
and to simultaneously accommodate overflow dining
during peak times."
The study also recommended relocating offices
to increase backup house and prep spaces required
to handle current volumes of diners.
Accordingly, this will locate more appropriate functions along
College Avenue to enhance the building's
architectural appearance.
The addition to the ground floor
of Redifer Commons will include new entrances and lobbies
to make the building more accessible from College Avenue.
The expansion will also improve operations at the loading docks.
The 1st floor addition will include 2 additional dining
rooms and administrative offices.
Seventy four beds will be lost as a result of the renovation
of the 4 existing buildings.
Therefore, we identify the opportunity
to construct a new residence hall on the site.
The new building will be 45,000 square feet
with 211 beds and 108 rooms.
There are 4 floors above the ground floor.
To take advantage of the sloping topography,
the ground floor mechanical storage
and support spaces will be located
on the north side which is below grade.
Twelve bedrooms will be located on the south side which is
above grade with windows.
Some bedrooms will be designed with ADA
and hearing-impaired accommodations.
The lobby, kitchen lounge area, elevator,
and stairs complete the plan.
The main entrance on the 1st floor leads
to the lobby, lounge, and stairs.
This floor will have 24 bedrooms with clusters
of individual bathrooms.
Remaining spaces include a telecom room,
elevator, and stairs.
Floors 2, 3, and 4 are designed the same with 24 bedrooms,
a commons and individual bathroom clusters.
Support spaces in the elevator will be located in the core
with stairs on the ends.
The main entrances to all the buildings will be connected
to the new sidewalk layout.
New portals in the connectors between Redifer Commons
and the residence halls will improve access
to South Halls' neighborhood from College Avenue.
The design build team Barton Malow has prepared renderings
of the renovated South Halls as well
as the additional building from these angles.
This is our residence hall today.
This is a rendering of the renovated hall
with the existing brick and stone cleaned and repointed
and all windows and roofs replaced.
New duct work and piping will be located in these enclosures
that will be wrapped with the stone veneer
to complement the existing stone on the building.
A close-up view of an existing entrance and a rendering
of a new main entrance and sorority lounge
with wraparound porch.
This is Redifer Dining Commons from College Avenue today,
and a rendering including the new addition to Redifer Commons
and the improved connector between Redifer
and adjacent residence halls.
The new residence hall will be located at the intersection
of Shortlidge and McKean Roads.
It has been designed
to complement the existing South Halls buildings
with matching brick and stone veneer.
The total project is expected to come
in at 94.1 million dollars funded by a combination
of Housing and Food Service reserves and debt
to be repaid by housing.
Completion will be December 2014.
The entire project will be accomplished in phases.
The first phase which includes the new building
and the renovation
of Haller-Lyons will begin this spring.
We will begin the renovation of Ewing-Cross next spring
and Cooper-Hoyt in January of 2014.
The Redifer Dining Commons addition
and Hibbs-Stephens renovation will start
in the spring of 2014.
We anticipate completion
of the entire project by the end of 2014.
We recommend approval of the final plans
and authorization toward contracts
for the South Halls renovation and addition at University Park.
Thank you.
[Inaudible Remark]
>> Can I ask a question?
>> Yes.
>> So I-- as I understand, the funding will all come
from Housing and Food Service funds, is that correct?
>> Housing will-- 6 million dollars will be drawn
from the Housing and Food Service reserve fund.
The balance will be funded through a bond issue,
the proceeds of which will be paid for through the Housing
and Food Service fees that are assessed to the students.
>> Other questions?
Stephanie?
Sure.
>> David, with the new dorms that are going
to be constructed, the bedrooms, are they singles or doubles,
or mixture [inaudible]?
>> [Inaudible], they have to know-- they--
single or double, bedrooms?
>> Doubles.
>> Doubles.
>> John?
>> Ford may know this better but this--
just the nature of it looks to me like what was done
at North Halls in 4 or 5 years ago.
Is it the similar kind of renovation in terms of extent
and end result, would that be a good example for us to think of?
>> Yes, I think it is a good example for you to think
of a good pattern that we're following.
>> I had a son who was in one of the North Halls dorms,
the first year they were opened as a freshmen,
it was really well done.
I think the overall scheme turned out very,
very well, so good luck.
>> Thank you.
>> I'm sorry, Keith?
>> Just to clarify, if I understand this correctly,
there will not be an additional burden on our maximum loan load,
is that correct, David?
>> That is correct.
The debt service load--
>> Debt service load.
>> Is a virtual wash.
We'll be rolling off over the next 3 fiscal years,
existing bond issues that virtually is a match
to the new debt service that would be required
for this facility, so virtually [inaudible]
so there will be no negative impact on our debt ratio
with the university which is well within parameters.
>> Thank you.
>> Ed.
>> How big is the reserve [inaudible]?
>> Joe, do you have a concept of the Housing
and Food Service reserve fund?
[Inaudible Remark] So 6 out of 20.
>> Okay, thank you very much, David.
May I have a motion to approve agenda item 7.
>> Move it.
>> Second?
>> Second.
>> All in favor-- aye.
>> Aye.
>> Opposed?
Thank you.
The next item on the agenda is an update on the status
of the Commonwealth
of Pennsylvania Appropriation Request
which President Erickson addressed
in his earlier report unless there are further questions
on that, we'll move on to the next agenda item.
So any other questions for-- on the subject?
Seeing none.
Agenda item 9 is a photo report
on selected construction projects and I'd like to call
on Ford Stryker to present this item, Ford.
[ Noise ]
>> Thank you Wendy.
Good afternoon.
Today I'm going to report on one project that's
under construction and six recently completed projects.
So I want to start with the Children's Hospital
which I realized everyone just toured
and we're making very good progresses.
I think you saw today.
The current budget estimate
for the project is 202 million dollars.
And we anticipate the building will be completed in September.
As Dr. Paz says the-- we hope to-- we plan to see--
begin seeing patients in December-- on December 3rd.
So, I'm going to show a few exterior shots of the building
because going through the inside,
I'm not sure everybody got
to really see how the outside looks.
So Maddie, if you want to move ahead here.
This is a view from the Cancer Institute at the curved front
of the building facing University Drive.
Installation of the glass curtain wall system
that forms its faces almost complete and the--
there is some metal panels that are over the building there
in the blue exteriors sheathing at the top of the photo
that will complete the finishes on this side of the building.
The work on the exterior of the building is near complete
and it-- the completed limestone columns on either side
of the waterfall wall on the east end
of the building are shown in the center
of this picture and in the rendering.
There's some granite yet to be installed
and that will be installed at the base of the limestone panels
and that will complete the face
which is really the most significant feature
of the building.
Now, this-- moving around to the--
on the south side of the building,
this shows a completed metal panel system on the south.
In the foreground is the bridge walkway
to the University Physician Center and to the left
of the picture is the Cancer Institute.
Overall, the project is 68 percent complete.
Now I'd like to briefly review 6 completed projects.
So the first project is the Support Services Building here
at Hershey which was completed in October of last year.
The building will receive equipment and supplies
for distribution throughout the hospital.
The next photos will show the project
from the north and the south.
And this is a close-up of the northwest end of the building
with the glass enclosed stairway in the center
and the service elevator shaft to the right.
Moving around to the other side,
this is the southwest side of the building.
To the right is the door to the vehicle service bay
and there are 8 loading docks are to the left.
Now, in this photo, you can see that the material
or equipment comes from the loading docks
and it's conveyed in-- on the left in this photo
and there's a material moving system and the box will go
from the trucks to the receiving area
to this high bay storage area.
When material is needed in the hospital, it's moved there
through a tunnel which is accessed
by the freight elevator.
The tunnel between the support services building
in the hospital is shown on this map and in this photograph.
This is the completed building as seen
from the BMR building to the north.
Moving to Penn State Berks, the new Gaige Technology
and Business Innovation Building was completed in October
of last year and came in a million dollars under budget.
This is the main entrance to the new building.
It will provide space for business, information sciences
and technology, engineering and hotel restaurant
and institutional management programs.
Inside the main lobby features the sculpture called The Wave
made of 1500 reflective glass squares.
The retail portion of the cafe is next to lobby
on the 1st floor and directly
above is the graphics multimedia lab.
The new lecture hall seats 60 students and is equipped
with interactive technology.
This is a [inaudible] engineering wing
that features 3 mechanical engineering classrooms,
a research lab and a computer design studio.
We are expecting this project to receive legal certification.
The Swift Building of Penn State DuBois was built in 1964 and was
in desperate need of renovation and upgrading.
The project was a complete renovation of the building
which increased classroom space, improved accessibility
and greatly reduced energy use.
The old windows were replaced
with a high performance insulated window system
for energy efficiency.
An elevator was installed to enable full access
between the main lower floors.
All interior finishes were upgraded
and this commons area received new furniture.
The double doors straight ahead open
into the new computer lecture lab complete
with new smart boards and technology to provide an
up to date quality educational facility for students.
The Swift Building renovation was complete in time
for use in the fall semester.
The renovation at the Pattee Library
to create a technology-rich student center hub called the
knowledge commons was recently completed.
A new computer lab that's open 24 hours a day during the
semester lends the best in digital
and multimedia technologies.
The new design provides open collaborative spaces,
group study rooms and multimedia facilities.
The shape of the furniture as well
as its arrangement facilitates group interaction.
There are 96 new work stations
that are almost always fully occupied.
This section of the knowledge commons provides students 12
quick access reference stations
with electronically adjustable tables.
The living wall adds an environmental component
with its lush green plant material.
At University Park, the addition
to the Moore Building is complete.
It was the first phase of the 2-part program
to upgrade facilities for the psychology department.
This department offers baccalaureate in science degrees
in psychology and approximately 900 students enrolled
as psychology majors and almost 550 students pursuing
psychology minors.
The Moore Building addition has enabled the Psychology
Department to co-locate their programs
and significantly upgrade the quality of space
and expand their programs.
This is a view of the building
from the Donald H. Ford Building.
The reflective white roof was installed to reduce energy use.
The main entrance atrium features a decorative wooden
metal wall panel that provides ventilation
between the existing building and the new addition.
Located on the 1st floor, a new interactive computer lab
and seminar rooms provide the students
with much needed workspace.
Administrative offices
and a conference room are also now available on the 1st floor.
Research efforts
in the psychology department's Child Study Center focus
on children's emotional development
and emotion regulation.
This is a 2nd floor research observation room
with 2-way mirrors to facilitate behavioral research
from the control room.
In the control room, the researcher observes
and collects audio and video data specialized recording
equipment can be tailored as needed
for each individual research project.
The 3rd and 4th floors have a total of 78 labs
and breakout rooms, as well
as faculty offices and seminar rooms.
This view of the western side
of the addition gives you a good idea of the completed structure.
In total, 73,000 square feet of new space was created.
We anticipate that the building will be LEED certified.
Now, Millennium Science Complex.
The Millenium Science Complex is the second largest academic
building with the most comprehensive research facility
at University Park and it's complete.
Move in began in early September
and will continue throughout the rest of this academic year.
This is a view of the completed building in the overall site.
As a reminder the life sciences wing is to the left
and the material sciences wing is to the right.
Cutting edge life and material sciences research will be
conducted in this building.
The discoveries made here will significantly advance our
knowledge of science and will have a profound impact
on industry such as medicine, agriculture,
transportation and energy.
A tour in the building will be scheduled for the Trustees
and you'll have an opportunity to learn firsthand
about the building from the students and faculty who use it.
Chair Strumpf, this concludes my report.
>> Any questions for Ford?
Stephanie?
>> Yes?
>> Ford, I congratulate you on coming in under budget
on a couple of this, but I did see the 1--
the library was over budget by about 450,000.
What is that attributable to?
>> So when you're renovating an existing building,
sometimes you discover some things you didn't plan on.
And one of the things we planned on was the floor
in the library had some structural issues that we needed
to correct so we had to apply a little additional money
to that to fix it.
>> Anything else?
Thank you.
>> There being no other items to come before the committee--
before the Committee on Finance and Physical Plant,
we are adjourned and Chairman Peetz,
the committee recommends the adoption
of the 8 items projected on the screens.
>> Okay. Thank you.
Again, the full board is in session.
I will take just a moment to review the items
on the screen before us.
Okay, lots of items.
May I have a motion for approval?
[Inaudible Remark] Okay, second?
>> Aye.
>> Any discussion?
Okay, thank you.
The motion carries.
Alright, and it looks as if we do not have a report
on legal matters so we'll move on to the next part which is
about our proposed new committee structure.
So as I noted earlier, we're committed
to moving the university forward.
The board is also examining our own governance structure
to determine whether we can make changes.
Yes? [Inaudible Remark] Oh, sorry guys.
[Inaudible Remark] Uh-oh, sorry about that.
Thank you.
You have to keep me in line here.
So, may I have a motion?
We got the motion.
Then all in favor?
>> Aye.
>> Okay. Any opposed?
The motion carried.
Thank you.
Okay, let's see.
The board is also examining our own governance structure
to determine whether we can make changes
that would improve our oversight of the university as well
as our accessibility to it.
What would be considered today is only the first step
and we envision additional changes as we move forward
in the review process.
We're proposing that our current committee structure be changed
from 3 to 5 standing committees
and that 5 subcommittees be established.
Revised resolutions were distributed at your place.
Everybody should have a description.
So now, I'll go through the proposed 5 committees.
The first is the Standing Committee
that will include the Committee
on Academic Affairs and Student Life.
This committee will consider and report on all matters pertaining
to the educational policies and programs of the university,
the faculty, instruction, research,
and continuing education, student life and the learning
and work environment for students, faculty, staff,
and all other members of the university community.
Certainly, it's clearly understood
that the committee will need and will seek consultation
from faculty, students and other constituents
and its deliberations and in any development of recommendations.
That's the first committee.
Marianne Alexander will be the chair.
And I'm happy to report that the co-chair is Peter Khoury
who is our student trustee.
The Committee on Finance, Business, and Capital Planning,
this is committee number 2, is to consider and report
or recommend to the Board on matters pertaining to finance,
business, budgets, non-budget expenditures, human resources,
investments, trust funds, insurance,
real estate contracts, government and private contracts
and grants, fees, room and board charges,
and the long range capital planning
and development of the university.
This committee will also seek consultation
from representative constituent groups as appropriate
in the exercise of its responsibilities.
The committee will have 3 subcommittees,
2 of which are not new.
The Subcommittee on Architect or Engineer Selection
and the Subcommittee on Finance are already in existence
and will continue with current roles and objectives.
A new subcommittee will be formed, the Subcommittee
on Human Resources, which will be responsible
for reviewing our greatest assets, our human resources.
This includes the applicable policies
and procedures concerning the recruitment, retention,
and training of employees,
as well as diversity and inclusiveness.
Again, it is clearly understood that the committee will need
and will seek consultation
from representative constituent groups in its deliberations.
Committee number 3, the Governance
and Long-Range Planning Committee will combine those
responsibilities formerly performed
by the Governance Advisory Group,
and will also have a few additional responsibilities.
The committee provides counsel and advice to the Board
in matters concerning the development of strategies,
policies, and practices that orient, educate, organize,
motivate, and assess the performance of trustees.
It reviews all committee guidelines to ensure appropriate
and comprehensive distribution of responsibilities,
any changes to the expectations of membership and code
of conduct for all trustees, recommends candidates
for election to membership on the Executive Committee,
as well as the service of a Trustee upon retirement.
In fulfillment of its long-range planning responsibilities,
it will charge and support the chief executive
with leading a strategic planning process.
The Board will participate in that process,
approve the strategic plan, and monitor its progress in order
to ensure the growth, development, and sustainability
of the University for future generations
and to achieve its full potential as one
of the world's great universities.
Again, it's clearly understood that the committee will need
and will seek consultation
from representative constituent groups in its deliberations.
Okay, we're also proposing, and this--
this will be the 4th committee but let me just say
that the other-- the 2 committees I just went
over are Linda Strumpf is for Finance, Business
and the last one I just did
for Long Range Planning is Jim Broadhurst as the chair.
So we're also planning a Committee on Audit, Risk,
Legal and Compliance
and I should mention that'll be headed by Keith Eckel.
Its role is to oversee the auditing
of the University's financial statements and internal controls
and adherence to laws, regulation and policies
that pertain to University operations
as set forth more fully
in the operating guidelines of the subcommittees.
The committee will also consider matters with respect
to the identification and management
of risks including financial, material and reputational.
This committee will have 2 subcommittees, the subcommittee
on audit which is currently functioning, and a subcommittee
on legal which will focus on compliance and oversight issues
as legally or otherwise prescribed,
including litigation strategies.
And that committee as I said is Keith Eckel.
So the 5th and final committee which is headed
up by Mark Dambly will be the final committee being proposed
is Outreach, Development and Community Relations.
In concert with the University's leadership,
this group will engage regularly
with the institution's major constituents including the
faculty, staff, students, alumni, supporters,
relevant state and local government agencies
and officials, business leaders, and the public.
It will also be involved in educating constituents
about the role and responsibilities of the Board
of Trustees, communicate value--
the value of the University to all constituents
at all locations and work on the development of short
and long-term communication plans consistent
with University priorities.
Again, it is clearly understood that the committee will need
and will seek consultation from faculty, staff, students,
alumni, and relevant state and local government officials
in its deliberations as appropriate.
While the details of the changes were reflected in the agenda,
we thought it was important for all
to have a clear understanding of the purpose
and functioning of each committee.
May I have a motion for approval of the proposed revisions
to the Bylaws and the Standing Orders of the Board of Trustees?
Second?
>> Second.
>> Any discussion?
Yes, Keith?
>> Karen, in looking at the guidelines on subcommittee
on audit, I'd raised a question on B. It appears
that it is written, the subcommittee
on audit would have a dual responsibility of reporting
to the Committee on Audit, Risk, Legal and Compliance and also
to the Committee on Finance Budget and Capital Planning,
I wonder if it would be clear from an operational standpoint
to strike and/or the Committee on Finance,
Budget and Capital Planning.
>> Yes, I think it would.
I think that what we are intending
with that audit function is that it goes
across not only the numbers in the finance function
but across other functions, so yes, I agree with that.
>> If it would be an order,
I move to strike that final language.
>> Okay. Anyone have any problem with that?
Okay, Paula if you'll take that note.
[Inaudible Remark] Okay, so-- so do I need a motion for--
to approve that amendment?
Okay, alright, thank you.
All in favor?
Okay, any-- I should have said any discussion
on that before I ask for all in favor,
sorry my Robert's Rules are not that great.
So any discussion on that?
Okay, all in favor.
>> Aye.
>> Alright.
Any opposed?
Okay, motion carries.
Thank you.
Okay, any other-- yes?
[Inaudible Remark] Yes.
[Inaudible Remark] Okay, so now we need a vote on all
of the committees, okay.
Yes? More discussion.
Paul, do you have more discussion?
>> Yeah we have some discussion on the new subcommittee
for human resources, would it be better to have that report
through the governance in Long Range Planning
or the Finance Committee,
I mean how hard would it be to move that--
>> Yup.
>> One way or the other as we develop that committee or--
>> Okay, can we have some further discussion about that?
[ Pause ]
Okay.
>> In terms of movement in the future,
it doesn't necessarily have to occur here, but we would expect
that further refinement as the committees get up, get running,
get operational and you have a better sense
of the strategic alliances that you need to make.
We would expect that revisions would be made
in the next several months so I would say
that it's not necessary to take any specific action
at this point in time,
but it could be discussed in a future revision.
>> Uh-hmm, yeah.
>> If you would like.
>> John?
>> Without-- [inaudible] I think Trustees Silvi says a very
good point.
We got to give that some thought about--
this is probably the newest activity that's being proposed
and developed.
You know, those activities were carried
out a different less formal ways
but this would be the newest formal activity and we need
to give a lot of thought to the actual structure and process
of that subcommittees activities and then
that probably informs us that it may be by the next meeting
or soon about where it fits most conveniently
and most appropriately under the committee structure
because it is so new and I share I think some
of Trustees Silvi's thoughts with regard to the prominence
of that subcommittee and its responsibilities
for establishing comprehensive policies
in a very important area.
>> So any further discussion or are we saying that we're going
to approve as was stated with the kind of caveat
that we're going to continue to revise and think
about the human resources function.
Conversely, I guess we could go for approval
within the governance function so let's have more discussion.
>> I just note that these are very significant changes.
I believe what will be a learning process
for is I absolutely recognize Trustee Silvi's concern
in this area.
I think we should recognize that we may come back
and evaluate changes in a number of the committees
and subcommittees as we move forward with operations and--
>> Yes.
>> And gain some experience, so I think we can move forward
and approve it recognizing that we may well have to revisit it.
>> Okay. Any other discussion, Carl?
>> I think just by the nature of this whole structure,
there is going to be a period of overlap on certain issues
that we're just going to have to deal with and share
with other committees that we might not be on.
I think that's-- just by the nature
of whatever issue we're dealing with, that's bound to happen.
So I think that's going to force one committee to really share
with other committees on certain matters.
But I think Paul is right, too.
>> Any other discussion 'cause what I'm hearing is let's vote
as it was described, yeah John?
>> Just one other comment.
I think it's important where you want to take it, Madam Chair
but on the-- under the Committee on Governance
and Long Range Planning, you'll note item 9A1, I believe,
oversight of all committee guidelines
to ensure appropriate comprehensive distribution
of responsibilities.
I think what's envisioned there is what would be traditional
at least in the world that I occupy where each year usually,
more often if necessary, each committee
and subcommittee would review its operating guidelines
to determine if they should be changed in some way
and then those would be forwarded
to this governance committee to be reviewed and considered,
accepted and revised and forwarded to the full board.
So I think the structure that we're looking
at already encompasses a view that there would be an ongoing
and periodic reassessment and revision as necessary--
>> Yes.
>> So I just think we should go
into it expecting there will be things that we want
to sharpen up, maybe something
that our experience reveals we don't cover sufficiently
or otherwise so I think what Trustee Silvi was talking
about is a little more structure but I think it's culminated
within a structure that we expect
to have operating on a routine basis.
>> Okay.
>> Thank you.
>> Any of you okay with that, Paul?
>> Yeah, I'm okay.
I think initially I'll probably be spending a lot of time
with Trustee Surma's group in working
on the governance issues, what they [inaudible] maybe
as time I would dictate and I would fit with finance,
so I'm okay with that.
>> Okay.
>> Any other discussion about it?
Okay. So I think what we're saying is with the caveat
that particularly for human resources but possibly
to the point of several other points made,
possibly with other topics that we want to approve it
with the original caveat that we had with Keith's that we want
to approve it as is and we'll keep evaluating.
It might keep changing and that's fine with everybody.
It will be fluid as needed as we learn more.
Okay, with that as a backdrop, may I have a motion to approve.
Okay, all second?
>> Second.
>> All in favor?
>> Aye.
>> Okay, anyone opposed?
Terrific. Thank you.
Okay, the corporation for Penn State is a Pennsylvania
nonprofit corporation organized in 1985 and is tax exempt
under the Federal Internal Revenue Code.
The member of the corporation is the Board of Trustees
and the annual report is presented in March.
Are there any questions
about the report included as Appendix IV?
Okay, as I noted in January, the election of members
of the executive committee was deferred until the March meeting
so that the results of the January elections were reflected
in the proposed membership.
Additionally, given the restructuring
of the standing committees,
we've also reflected those changes.
The membership includes the positions of chair, vice chair,
an immediate past chair of the board, the President
of the University, the chairs
of the 5 newly created standing committees,
the chair of the Board of Directors
of the Penn State Milton S. Hershey Medical Center
and the chair of the special investigations task force.
The names of the individuals holding these positions are
included in the agenda.
First, I'll entertain a motion that the number
of elected members including the ex-officio members be determined
as 11 for 2012.
Is there a second?
Okay, all in favor?
>> Aye.
>> Alright, anyone opposed?
Thank you.
The bylaws do require that written ballots be used
and I would like to ask
that they be distributed at this time.
[ Pause ]
>> Karen, can I ask a question?
>> Yes. [Inaudible Remark] Yes,
actually those pages were missing, so I'm coming to that.
Thank you, David.
[Inaudible Remark] Thank you.
[Inaudible Remark]
[ Noise ]
Okay. [Inaudible].
[ Silence ]
Okay. So, the following individuals had been elected
to membership on the executive committee for 2012,
Marianne Alexander, Jim Broadhurst, Mark Dambly,
Keith Eckel, Rob-- Rod Erickson, Ken Frazier, Ed Hintz,
Keith Masser, Karen Peetz, Linda Strumpf, and John Surma.
Congratulations.
Okay, now, we're going to go back to item number 8.
Information was provided separately concerning the
awarding of the honorary doctorate of science
to Steven Chu at an upcoming commencement ceremony.
May I have a motion for approval?
Okay, second?
Any discussion?
All those in favor?
>> Aye.
>> Okay, opposed.
The motion carries.
Okay, now, I think we're up to 11.
Okay, to follow up on the earlier report of the activities
of the corporation for Penn State and according
to its bylaws, the member of the corporation, again,
the Board of Trustees meet annually for the purpose
of electing directors.
You have before you a resolution to elect the board of directors
of the corporation for Penn State and I'd like to ask
for a motion for approval, may I have motion?
Okay, thank you.
Second?
>> Second.
>> Any discussion?
All those in favor?
>> Aye.
>> Any opposed?
Okay, the motion carries.
As a reminder, these newly elected directors will briefly
meet immediately following the adjournment of this meeting
in the multipurpose room where we had lunch.
Included in your agenda is a resolution providing
for the appointment of Keith Masser as a member of the board
of directors of the Milton S. Hershey Medical Center.
May I have a motion for approval?
>> Move.
>> Second?
>> Second.
>> Any discussion?
All those in favor, please indicate by saying aye.
>> Aye.
>> Opposed?
The motion carries.
Thank you for your time and attention today.
I think we're to the end of the agenda.
Did I miss anything?
I'm a little nervous.
Our special thanks to Dr. Paz for hosting our meetings.
It's evident that a great deal of time and energy went
into the preparations and the presentations.
Are there any other matters to come before the Board?
Hearing none, I declare this meeting as adjourned.
Thank you very much.
[ Silence ]