Executive Committee of the American Institute of Physics
Minutes of Meeting
1. Roll Call
The meeting was called to order at 9:05 a.m. by Chairman Ramsey.
Executive Committee Members Present
Norman F. Ramsey, Chairman of AIP Governing Board; Robert T. Beyer, ASA; Peter B. Boyce, AAS; Charles B. Duke, AVS; William W. Havens, Jr., APS; John C. Johnson, Secretary; H. William Koch, Director; Jarus W. Quinn, OSA; Arnold A. Strassenburg, AAPT
Nonvoting Participant
Frederick R. Eirich, SOR, for the latter half of the morning session.
Guest
Philip M. Morse, Chairman of Committee for Public Policy
AIP Staff Present
Gerald F. Gilbert, Treasurer; Robert H. Marks, Assoc. Dir. for Publishing; Lewis Slack, Assoc. Dir. for Educational Services; Dorothy M. Lasky, Assistant to the Director; Mary M. Johnson, Assistant to the Secretary
2. Minutes of Executive Committee Meeting of 29 October 1980
Havens noted that, according to the minutes, the Executive Committee authorized $2,500 for the fulfillment system proposal from Business Controls Corporation (BCC), whereas $4,500 has been committed by AIP. Gilbert explained the $2,500 was for fulfillment only, whereas the commitment also includes accounting. The following motion was made by Havens, seconded, and passed by consensus:
MOVED that the minutes of the 29 October 1980 Executive Committee meeting be approved for distribution.
3. Completion of Woodbury Building
Marks commented that, since the dedication of the Woodbury addition on 1 November, there has been a doubling of staff occupancy there. The main concern in the next six months will be to complete the staffing at Woodbury. Through the assistance of some key people from New York who are going out to train the new employees, the transition is expected to be smooth and efficient. Havens suggested that, to minimize misunderstandings, a letter should be written to each of the persons being transported to Woodbury by AIP, advising them this service will terminate in six months.
Physics Today, which did not move, caught the backlash of the ATEX computer downtime and there was a delay; however, it is expected that the January issue will be on schedule. It was pointed out by Duke that his copy of the latest issue of Physics Today had a number of pages missing and some triplicate pages. Marks invited observations of errors on a continuing basis in order to assure that they are corrected.
4. Completion of Permanent Financing of the Woodbury Construction
Gilbert described the borrowing experiences in achieving permanent financing with Guardian Life Insurance Company at a 8 ¼% interest rate. Chairman Ramsey, on behalf of the Board, congratulated the AIP staff for their accomplishments in achieving permanent financing at such a reasonable rate.
Following the reading of a proposed letter to Gilbert, Philip S. Agar, and William A. Boylan (AIP attorneys) acknowledging their achievement in securing the Industrial Development Agency bonds and completing the arrangement with Guardian Life, certain modifications were suggested and the following motion was made by Havens, seconded by Duke, and passed unanimously:
MOVED that the Director’s proposed letter, as modified, be approved.
5. Consideration of the Proposed 1981 Budget
-
Introduction
Koch indicated consideration of the 1981 budget should key on the following points:
- Critical 1980 Activities
- Projections Beyond 1981
- Assumptions for 1981
- AIP “Secret” and Society Sovereignty
He closed the introductory comments by emphasizing that the AIP “secret” is the strong core service program operated on behalf of the physics and astronomy community at large, and that only by supporting that core program will the Member Societies be able to improve their individual sovereignties.
Koch pointed out that during the past year the construction and move to Woodbury have placed very abnormal demands upon both human and fiscal resources. Also, it has accentuated needs for updating the fulfillment and accounting capabilities in the form of new computer facilities.
Koch reported that AIP started 1980 with an $8,000 deficit; however, it is projected that the year will end with a net income of $180,000 from operations. This does not take into account the expenditure of $400,000 for new furniture and equipment for Woodbury, approved by the Board, which further adds to the deficit. Since this is done by using subscription funds, it will be necessary to make some tough decisions regarding increases in page charges, page budgets, marketing expenses, and new starts, such as the Committee for Public Policy (CPP).
Koch explained that, under the new distribution, it will be the plan to have Gilbert and Slack essentially monitor New York headquarters operations, while Marks and Koch will monitor the Woodbury operation and staff.
-
Assumptions for 1981 and Projections Beyond
Koch reported consideration is being given to combining Soviet Physics Technical Physics with Technical Physics Letters into one journal. It is planned to drop the proposed 50th Anniversary exhibit. He invited comments as the budget is further discussed. Duke suggested consideration be given to increasing subscription rates rather than page charges. He suggested that increased postal rates be charged back to the customer, and noted that the yearly operational plan should be consistent with the long range plan.
-
Fiscal Information Reports and Summary of Budget
Gilbert referred to the 1981 budget book which had been distributed and noted that, in the interest of consistency, the 1981 draft budget is in the same format as the 1980 budget. Duke observed that many of the 1980 “outlooks” are missing which are mandatory for the Executive Committee to properly evaluate the proposed budget. In the future, the book should contain all of the pages and projections for every line item.
Gilbert highlighted certain budget items such as Summary Statement of Operations, Statement of Income and Expense, Member Society Dues, Corporate Associate Dues, General and Administrative Expense, Computerization of Accounting, 50th Anniversary Celebration, Legal Fees, Investment Income, Relocation Expense, Marketing Institute of Physics (London) Publications, and Net Income.
After discussion of major transactions, it was observed by Quinn that the Board should give management necessary directions such as how much to raise subscription rates, or goals for cash reserves. It was the consensus that a reserve should be built up soon for the anticipated substantial increase in postage rates.
-
Publishing Branch Operations
Marks reported that editorial management costs have been escalating; for example, the cost of editorial work at Argonne National Laboratory went from $100,000 to $130,000 for the Journal of Applied Physics, Applied Physics Letters, and Review of Scientific Instruments.
After some discussion, the following motion was made by Havens, seconded by Duke, and passed without dissent:
MOVED that the following page charge increases be approved, effective as soon as practicable:
From To Applied Physics Letters $100 $120 Journal of Applied Physics 75 85 The Journal of Chemical Physics 75 80 Journal of Mathematical Physics 70 85 The Physics of Fluids 80 85 Review of Scientific Instruments 80 85 Marks distributed a 1981 reprint price list and recommended that the Executive Committee authorize price increases amounting to approximately 15%. The following motion was made by Havens, seconded by Strassenburg, and passed without dissent:
MOVED that the proposed reprint price increases, as set forth in Appendix A to these minutes, be approved for 1981.
After discussion of accounting for Soviet Translations and the unsatisfactory demands placed upon AIP by the auditors, the following motion was made by Duke, seconded by Havens, and passed unanimously:
MOVED that the auditors and (AIP) management negotiate a new method of accounting for the Soviet Translation Journals which is better suited to the needs of the Executive Committee for budgeting and planning.
It was suggested that, as one moves further into secondary services, figures should be set up on a cost center basis so that the Board can understand them, that is, showing separate sources of income from secondary services and where it goes.
-
Educational Services Branch Operations
-
Proposal of Committee for Public Policy (CPP)
Morse, as chairman of CPP, reported there have been several meetings, and it is becoming clear what the committee can do. They believe they can provide interface between the Member Societies and Governmental agencies. They can keep the Member Societies in touch with the Washington scene and give them advice about handling of issues. One question of importance is the Federal science budget. The American Association for the Advancement of Science (AAAS) does a thorough job of analysis, and a close collaboration between AAAS and CPP can be envisioned, perhaps resulting in notices in Physics Today and letters to the Member Societies. Another subject is the limitation on new technology conferences. Edward Gerjuoy (chairman-designate of the APS Panel on Public Affairs) has asked CPP to take this on. Morse has asked John Coleman and Peter Boyce to do some further exploring in the Department of Commerce (DOC) to find out what the top level policy is at the moment on this issue.
There is thought of publishing a set of guidelines in Physics Today for the Member Society officers as to what they should do, and should not do, if representatives of DOC or the FBI come around and say, “You are doing wrong.”
Duke reported that, at the recent AVS Board meeting, it was concluded that interpretation of DOC regulations in the future might require involving AIP in legal action. It was suggested there be an item on the AIP Governing Board meeting agenda about this possibility.
Morse indicated that the subject of A-21 has come up for CPP consideration. The committee will keep in touch with the National Academy of Sciences (Herbert A. Simon) on this.
Two other questions believed to be appropriate for CPP to study are (1) physics in secondary schools, and (2) development of publications as a system and how it will be impacted by computerization.
-
General Report – Branch Operations
Slack noted that the proposed 1981 budget provides for continuing exploration and maintenance of the Manpower Statistics Data Base. Demands for consulting help in the Manpower Placement area have diminished a great deal, though it would be well to have someone available for that function at meetings. The Advisory Committee on Manpower has urged nurturing relations between physicists and employers.
Slack reported there is good reason to believe the NSF grant for the Public Information TV project will continue.
It is anticipated the History program will continue essentially the same as for 1980. The Center’s endowment now stands at approximately $219,000.
Society of Physics Students programs are essentially at the same level as budgeted for 1980. Money collected from the Sigma Pi Sigma alumni has been increasing steadily, and there has been an increase in the number of students who belong.
About the only saving in the “Directory of Physics & Astronomy Staff Members” could come from deleting the entire lists for industrial, Government, and FF&R laboratories, and leaving only the listing of the laboratory and head thereof. Members of the Executive Committee spoke strongly in favor of retaining all classifications. It was suggested consideration be given to issuing the “Directory” only every other year, alternating with the APS membership directory as a means for savings in costs. (This suggestion appeared to have a favoring consensus.)
-
The meeting was adjourned for luncheon at 12:55 and reconvened at 1:30 p.m.
-
Fiscal Branch Operations
Gilbert noted that the rate per square foot for physical plant is almost identical for both the New York City and Woodbury locations, including the New York City real estate tax (which is now being protested).
A new item has been included in the budget for Accounting, namely, the Director of Accounting, a position which is now under active recruitment.
Quinn asked when the costs of $4.25 per member and $6.25 per nonmember for subscription fulfillment are going to be officially quoted to the Executive Committee and to the Member Societies. The response was, “We have got to do a better job of that.”
-
Discussion of Proposed 1981 Budget
This discussion began with expressions of concern due to the scope and magnitude of the proposals of the Committee for Public Policy. It was the apparent consensus that both the scope and magnitude of the activities of this committee should be reexamined, with general guidance to chairman Morse for a more conservative start-up of activities. It was reported that the committee has been meeting on a 6-times-per-year schedule and this has resulted in establishing a vigorous set of program goals. It was suggested that, if there is to be a staff liaison person, he/she should be located in Washington rather than Boston, as proposed.
Havens suggested, that, because of the lack of detail about Publication Division II, he would like to see the budget approved in its present form for three months, with an arrangement whereby some further information and details in the quoted prices are will be forthcoming, probably at the February 1981 Executive Committee meeting; and then approve the budget for the rest of the year. It was pointed out by AIP management that this would be impractical; one could not make the necessary commitments and hire needed staff. The discussion ceased.
-
Approval of Budget
Based upon the above discussion of CPP proposed activities and on page charge increases approved earlier in the meeting, the following motion was made by Duke, seconded by Beyer, and passed with one abstention (Boyce):
MOVED that the budget for 1981 be amended by the following two changes: (1) page charge increases for JAP and JMP are to be $5.00 more than originally budgeted, and (2) the budget for CPP is to be reduced from $80,000 to $25,000.
(It was noted that the effect of the above two budget changes will be to add approximately $90,000 to the net income for 1981.)
With the understanding that approval of the budget as modified will be attended by a report on 1 October 1981 of the actual costs for the first six months, the following motion was made by Duke, seconded by Boyce and, after brief affirmation of the conditions, passed unanimously:
MOVED that the budget for 1981 be approved as amended.
6. Resolution on Fiscal Reporting Passed by American Physical Society Council
Havens called attention to agenda Attachment A setting forth the subject resolution which concerns cost reporting by AIP to the Society, and which calls for renegotiation of contractual arrangements between AIP and APS. This subject is to be considered by Quinn’s Committee on Fiscal Reporting, and it was agreed that no action by the Executive Committee is required at this time.
7. Status of Computerization of Accounting and Subscription Fulfillment
Gilbert distributed the report from Business Controls Corporation entitled, “Status on Requirements and Preliminary Design Study for AIP Phase I Accounting.” No additional substantive discussion or action took place on the subject under this item.
8. Status of Fiscal Reporting
Quinn reported that the Committee on Fiscal Reporting awaits word from Gilbert to say when a meeting can be held.
9. Status of Protest to Payment of New York City Real Estate Taxes
Gilbert distributed copies of a letter from Windale, Marx, Davies & Ives (attorneys) dated 16 December 1980 which reported that no decision has been reached so far in the matter of AIP’s real estate tax exemption application. No action was required or taken at this time.
10. Relocation of AAPM Headquarters to AIP, New York
Slack reported that, at its recent Board meeting, AAPM voted to accept AIP’s proposal for the housing of AAPM’s executive offices at AIP headquarters. Anke Junge, who was previously employed in the AIP Publications Division, will be their Executive Secretary in New York.
11. Consolidation of Bank Resolutions
Gilbert stated that it would be appropriate to consolidate AIP’s various bank accounts. The Chairman presented to the meeting seven printed forms submitted by Bankers Trust Company, as modified by typed material in the resolutions contained therein. After discussion, upon motion made by Quinn, seconded by Beyer, and passed without dissent, it was:
RESOLVED, that the resolutions contained in the seven printed forms of Bankers Trust Company, identified as to be applicable respectively to this Corporation’s Imprest Account, Disbursements Account, Facsimile Signature, Corporate Borrowing, Custodian & Investment Advisory Account, Safe Deposit Box and Savings Account, with the typed additions to said resolutions, presented to this meeting be and they hereby are approved and adopted as resolutions of this Executive Committee and that a copy of said printed forms with said typed additions shall be inserted in the minute book immediately following the minutes of this meeting as a part of the records of this Corporation.
The Chairman then presented to the meeting a printed form submitted by Chemical Bank, as modified by typed material in the resolutions contained therein. After discussion, upon motion made and passed without dissent, it was:
RESOLVED, that the resolutions contained in the printed form of Chemical Bank, identified as to be applicable to this Corporation’s Payroll Account, with the typed additions to said resolutions, presented to this meeting be and they hereby are approved and adopted as resolutions of this Executive Committee and that a copy of said printed form with said typed additions shall be inserted in the minute book immediately following the minutes of this meeting as a part of the records of this Corporation.
12. Request from ASA for Rebate on JASA Cumulative Index
Gilbert distributed copies of a letter he had received from Beyer dated 2 December 1980. The letter called for a settlement of the matter involving the JASA 1974-78 Cumulative Index with payment by AIP to ASA in the amount of $10,000. The following motion was made by Quinn, seconded by Beyer, and passed with two abstentions (Havens and Strassenburg):
MOVED that the proposed settlement be approved.
13. Cancellation of Approval for Short Term Loan from Bankers Trust Company
Gilbert distributed a memorandum and suggested formal cancellation of the subject approval which was voted by the Executive Committee at the 5-7 September 1980 meeting. The following motion was made by Duke, seconded by Boyce, and passed without dissent:
MOVED that approval of a $500,000 unsecured short term loan from Bankers Trust Company be formally terminated.
14. Planning for March Meeting of Governing Board and Assembly of Society Officers; Authorization of Payment for One Society Officer to Attend Assembly
Koch suggested for upcoming meetings a focus on the following issues which are before AIP: (1) At the February Executive Committee meeting a focus on journals and sources of income; (2) At the Assembly of Society Officers, preceding the Governing Board meeting, a focus on science education, science communication, and Society relations.
Based on a brief discussion of ways to encourage participation of Member Society officers, the following motion was made by Strassenburg, seconded by Duke, and passed without dissent:
MOVED that AIP be authorized to pay expenses for one officer from each Society, who is not a member of the Governing Board, to attend the spring 1981 Assembly of Society Officers.
15. Status of Planning for AIP 50th Anniversary
Lasky reported that Herbert L. Anderson expects that the Anniversary Handbook, of which he is editor, will be completed and ready for distribution in October 1981 at the Anniversary meeting. Due to financial limitations, there will not be an exhibit as originally planned. The Corporate Associates Advisory Committee has been actively planning the program for 15-16 October 1981.
16. Next Meeting
Because of a conflict which developed in Marks’s schedule, the date of the next meeting of the Executive Committee was changed from 19 February to 27 February 1981, at AIP headquarters.
17. Offer to Purchase AIP Headquarters Building
Koch reported that AIP had received “a nibble” on the purchase of the building at 335 East 45 Street for $7.2 million. A report could be given at the February meeting of what might be done by way of renting space if AIP were to sell, put the money in the bank, then when real estate goes down..... The general response of the Executive Committee seemed to be that they had no interest; however, if the price approaches $20 million, the question could be raised again.
18. Executive Session
The staff was excused at 3:20 p.m. and the Executive Committee, acting as the Administrative Review Committee, met in executive session. The conclusions of the Administrative Review Committee discussions are reflected in salary adjustments for AIP compensated officers, and are recorded below in the official copy of these minutes only.
19. Adjournment
The executive session was adjourned at 4:15 p.m.