The VAO (Virtual Astronomical Observatory) Science Council (VAO-SC) met on July 27-28, 2011 at the Harvard-Smithsonian Center for Astrophysics in Cambridge MA, to review the VAO performance during its first year of operations. In this meeting the VAO demonstrated the new tools for astronomers that are being released in September 2011 and presented plans for the second year of activities, resulting from studies conducted during the first year. This document contains the recommendations of the VAO-SC for the second year of activity of the VAO.