PSU BOT November Meeting Report

[PSUFTG2]

I think a lot of folks might be interested in the transcript from the Finance Committee meeting. It is linked in the newsletter:

My comments from the Penn State Board of Trustees Meeting November 10, 2023 – BARRY FENCHAK

 

[Bwifan]

 

[PSU Mike]

Thanks, Barry. Let me go way out on a limb here and predict that if you ever see other options laid out, that each alternative to the chosen one will (be made to) appear so undesirable as to make the decision a no-brainer. And if you question any valuation of an alternative, no matter how counterintuitive it seems, you will be told that it’s what the expensive, subject matter expert, consultants arrived at.

 

[TiogaLion]

Thanks Barry. It is totally unacceptable when any Trustee is given this response "the only information that I was provided with was that this project was the most we could afford to spend" regarding the single most expensive endeavor in the history of the University. These people are out of control.

To your knowledge, have any alternatives been discussed with any trustees?

 

[Bwifan]

I think a lot of folks might be interested in the transcript from the Finance Committee meeting. It is linked in the newsletter:

My comments from the Penn State Board of Trustees Meeting November 10, 2023 – BARRY FENCHAK

Many on PSU BOT are like the doctors that are my clients. When the doctors are spending their money on there own private practice they are 6 inches taller standing on their wallets. But when they bring their cases to the hospital to perform surgery, money is of no object. They spend the hospitals money like drunk sailors. It's incredible to see, when the hospital questions why they need x,y,z in the operating room they demand it. Yet when proposed with the same thing for their own practice it's "hell no too expensive I can get by with a,b,c".

 

[PSUFTG2]

To your knowledge, have any alternatives been discussed with any trustees?

No

 

[ValleyForgeLion]

So reading this... the head of Populous, a major architectural firm on 4 continents, thinks they're getting part of $700 million when they're only getting part of $70 million? They made a $630 million misstatement? Seems highly unlikely. Where is this contract so that we can read it exactly?

 

[GrimReaper]

So reading this... the head of Populous, a major architectural firm on 4 continents, thinks they're getting part of $700 million when they're only getting part of $70 million? They made a $630 million misstatement? Seems highly unlikely. Where is this contract so that we can read it exactly?

Populous will receive a fee for the design, planning, and ongoing consulting. The bulk of the $700mm (or whatever the number is) will go to myriad suppliers, contractors and subcontractors who will be involved in the actual construction where Populous's role will, or should be, minimal.

 

[OuiRPSU]

Many on PSU BOT are like the doctors that are my clients. When the doctors are spending their money on there own private practice they are 6 inches taller standing on their wallets. But when they bring their cases to the hospital to perform surgery, money is of no object. They spend the hospitals money like drunk sailors. It's incredible to see, when the hospital questions why they need x,y,z in the operating room they demand it. Yet when proposed with the same thing for their own practice it's "hell no too expensive I can get by with a,b,c".

How are x, y, and z more expensive than a, b, and c? Shouldn’t x, y, and z be the most affordable? They’re literally the last three you can possibly choose.

 

[ValleyForgeLion]

Populous will receive a fee for the design, planning, and ongoing consulting. The bulk of the $700mm (or whatever the number is) will go to myriad suppliers, contractors and subcontractors who will be involved in the actual construction where Populous's role will, or should be, minimal.

Yeah, I get that. But there is, according to the Finance Committee, no $700 million contract. Which is what Populous announced, and the Penn State athletics PR machine announced.

 

[GrimReaper]

Yeah, I get that. But there is, according to the Finance Committee, no $700 million contract. Which is what Populous announced, and the Penn State athletics PR machine announced.

Can't really respond to that. Taking $700mm as the total cost of the renovation project, I'd be floored if we saw one contract for that amount. I would expect to see numerous (dozens, hundreds maybe) contracts covering components of the project, not one.