March 27-28, 1987

Governing Board of the American Institute of Physics

Minutes of Meeting

The Governing Board of the American Institute of Physics met in the AIP Woodbury Conference Room, Woodbury, NY, on 27 and 28 March 1987. The 27 March symposium and banquet in honor of H. W. Koch on his retirement were held at the nearby Woodbury Country Club. For clarity in presentation with reference to the printed agenda, events recorded here are not necessarily in the same chronological order in which they appeared.

Members Present:
H. Frauenfelder, Chairman, O. L. Anderson, H. Barschall, R. T. Beyer, P. B. Boyce, R. B. Clark, W. L. Duax, V. Fitch, R. M. Grant, R. G. Greenler, W. W. Havens, Jr., D. F. Holcomb, H. W. Koch, A. U. Landolt, D. Lazarus, H. Lustig, J. S. Murday, J. A. Purdy, J. W. Quinn, R. Resnick, E. N. Sickafus, F. D. Smith, A. F. Spilhaus, Jr., M. Strasberg, N. Suntharalingam, M. Walt, J. M. Wilson

Members Absent:
R. S. Bauer, P. M. Bell, E. M. Conwell, F. H. Fisher, M. K. Hudson, H. Kogelnik, J. A. Krumhansl, C. K. N. Patel, K. F. Wissbrun

Member Society Officers Present:
A. D. Allen (AAPT) Sat., R. Alley (AAPT) Fri. eve. & Sat., C. M. Foris (ACA), C. M. McKinney (ASA), J. S. Rigden (AAPT) Fri. eve., R. E. Smith, H. Voss (AAPT) Sat.

Guests:
K. W. Ford, Executive Director-Elect

Symposium Speakers: H. R. Crane, D. W. Kerst, N. F. Ramsey

AIP Staff:
Gerald F. Gilbert, Treasurer; Robert H. Marks, Director of Publishing; Lewis Slack, Director of Educational Programs; Nathalie D. Wagner, Assistant to the Secretary; Bernard Dolowich, Controller; Lawrence T. Merrill, Assistant to the Director; Paul A. Parisi, Manager, Special Projects

1. Convene – Roll Call

The meeting was called to order at 10:00 a.m. in the AIP Woodbury Conference Room by Chairman Frauenfelder.

1. Introduction of New Members

   Grant conducted a full roll call of the Governing Board, noting societal representatives new to the Governing Board as their names were read.

2. Resolution of Appreciation in Memory of G. H. Vineyard

   Slack read the resolution he had drafted. Upon motion by Lustig, which was seconded by Havens, the resolution was unanimously ADOPTED. Frauenfelder said we have lost a great friend and physicist and human being. The resolution is recorded herewith.

   At this meeting on 27 March 1987, the Governing Board of the American Institute of Physics sadly records the death of its member George H. Vineyard.

   His distinguished career as scientist and as administrator and his long record of leadership and service to physics led to his being elected to office in The American Physical Society. Named by the APS as one of its representatives to the Governing Board in 1986, he had begun already to make felt the influence of his wisdom and caring for physics. The loss of his presence on the Governing Board will be keenly felt.

2. Report of Secretary

1. Minutes of Governing Board Meeting of 19-20 October 1986

   Grant moved a correction to a motion passed at the previous meeting; the correction was variously seconded, and unanimously CARRIED. The revised motion is as follows:

   "Make available funds generated by AIP-owned journals and publications to support AIP educational programs operated for public good and in the best interests of the physics community." (Item 8. c. 1)

   The revised minutes then were approved.

2. Approval of Bylaws

   Grant reported that the Bylaws were not approved by mail ballot as had been expected following the previous Governing Board meeting as unanimous approval was not given, as is required by the Bylaws for a mail ballot. The proposed Bylaws had been recommended to the Governing Board for approval; an affirmative vote of two-thirds of the Governing Board at a meeting is required for passage.

   Havens made the following motion, which was seconded by Sickafus. A brief discussion of interpretation, recorded below and then included in the motion, served to clarify one point. The motion was then unanimously CARRIED.

   Moved that the revised Bylaws of the Institute be approved as presented, including the interpretation that the word "majority" in Article I refers to a majority of those present and voting.

3. Application of American Nuclear Society for Affiliated Society Status

   Grant said that the Executive Committee, at its December 1986 meeting, had recommended to the Governing Board the American Nuclear Society be accepted as an AIP Affiliated Society. The following recommendation was unanimously CARRIED.

   MOVED that the American Nuclear Society be accepted as an Affiliated Society of AIP.

3. Report of Chairman

Frauenfelder noted there is one essential topic before AIP, namely space needs. He said we cannot responsibly continue as we are doing now by just renting additional space. This topic will be discussed during the meeting and then a committee will be formed to try to reach a decision later this year.

1. Actions of Executive Committee Since Last Meeting

   There was no discussion on the report which was distributed with the Agenda.

4. Remarks by Executive Director-Designate

Ford said the last few months had been exciting for physics and also for him. It had been a pleasure to work with Koch in this transition. He noted several issues which require attention:

1. Future space requirements.
2. Subscription fulfillment system. He will try to help move this toward completion.
3. Copyright issue. The Institute faces problems if this is not resolved.
4. PI-NET and PI-MAIL. He expects we will make good progress this year.
5. Washington office. He will explore its exact role and potential for development.
6. Assorted AIP documents, including references, policy planning, and operations brochures. There will be new initiatives as well, despite the fact that there are more constraints on initiating new programs than there were last year.

Ford, noting the large size of the Board, said he hopes for more substantive involvement by the Board in AIP affairs. A great deal has been delegated to the Executive Committee. He mentioned two possible areas:

1. Trying to get more Board members involved in committee work;
2. More involvement in policies and budget development process.

Two specific issues that he will be considering:

1. Fund raising. Should AIP have a professional development officer in this area, who would also be a service officer for the Societies? By this he also means foundation and government grants, public education, Olympiad, and other projects where outside funding would be useful and valuable. The Societies are engaged in their own efforts but they could not individually support a professional officer and it could be an additional service to the Societies.
2. AIP logo. Would it not be timely to look at our graphic symbol and other design elements? He thinks the old logo is dated.

Frauenfelder thanked Ford for his remarks, and expressed his hope for a long and productive future.

5. Report of Annual Meeting of Corporation

Grant reviewed the meeting. There were no special items to be acted on this year. The new Articles of Incorporation, passed in 1986, are still moving through the legal morass toward approval by the State of New York.

6. Report of Nominating Committee

Landolt, Chairman of the Nominating Committee, noted the report of their 1 February 1987 meeting.

1. Nominations for Board Chair and Secretary for 1987-88

   Grant said that the instructions from the Secretary regarding the nominations for Governing Board Chairman and Secretary were not adequate for the Nominating Committee. Their report suggests that in the future the instructions convey that recommendations for these positions come from the Executive Committee, not the Nominating Committee. If a replacement is needed for either of these positions, a special search committee would be formed.

   Landolt, on behalf of the Nominating Committee made the following motion which was unanimously CARRIED.

   MOVED that the Secretary revise his instructions to the Nominating Committee so as to indicate that the Executive Committee will have the responsibility for nominating candidates for election to the positions of Chairman and Secretary of the Governing Board.

   At this point Frauenfelder and Grant were excused and Koch chaired the next items.

   Koch opened the nominations for Chairman of the Governing Board. Havens then made the following motion, which was seconded by Landolt. Wilson then moved that the nominations be closed and Frauenfelder be elected by acclamation. The motion was unanimously CARRIED.

   MOVED that Hans Frauenfelder be elected Chairman of the Governing Board for 1987-88.

   Landolt moved the following, which was seconded by Wilson. Havens moved that the nominations be closed and Grant be elected by acclamation. The motion was unanimously CARRIED.

   MOVED that Roderick M. Grant be elected Secretary of the Governing Board for 1987-88.

2. Elected Member-at-Large of Governing Board

   Landolt then made the following motion, which was unanimously CARRIED.

   MOVED that Joseph M. Reynolds be elected Member-at-Large of the Governing Board for 1987-88.

3. Report on Other Nominations

   After noting minor changes in the committee lists which had been distributed Landolt then moved the following, which was unanimously CARRIED.

   MOVED that the report of the Nominating Committee be accepted as presented.

   Landolt reported on a discussion by the Nominating Committee concerning the makeup of the Executive Committee. He moved that a small committee be named which a charge to formulate guidelines for composition of the Executive Committee.

   After discussion to clarify the charge to the proposed committee, the following motion was unanimously CARRIED.

   MOVED that the Chairman appoint a small committee whose charge is to formulate guidelines for establishing the composition of the Executive Committee so as to assure representation of all societies on a "regular" basis.

   Landolt said the Nominating Committee also recommends that

   1. there be two hold-overs from the previous Nominating Committee each year to provide continuity; and
   2. care be taken to avoid having too many current Society Treasurers on the Audit Committee; former Society Treasurers would be more appropriate;

   Beyer asked if they discussed conflict of interest where executive officers serve on committees. Landolt said this was discussed but no conclusion was reached.

   Frauenfelder asked Ramsey, as a former Chairman, if he had seen conflict of interest. Ramsey said there were occasions of genuine conflicts of interest but also great benefits. He thinks it would be a mistake to exclude them.

   Havens said APS tries to get individuals in the presidential line to serve on the Executive Committee, but it is a job that requires a lot of time and they are reluctant to take the time. Also, if someone must travel from the West Coast, it takes another day. The principle is good, but it is difficult to implement it.

   Frauenfelder concluded that it is a good idea to look at these things and to be aware of them.

4. Appointment of Chairpersons of Committees by Chairman of the Governing Board

   Frauenfelder said he would review the committee’s recommendations and name the chairpersons.

7. Appointment of Subcommittee Chairs and Members

Koch noted the lists of all the committees and subcommittees. The latter were designed to allow the societal representatives on the policy committees to receive informed information and advice. The policy committee then reviews and passes on the recommendations. It is not expected that each committee and subcommittee will report directly to the Governing Board. Full societal representation is not needed on the specialized subcommittees. The present arrangement, as with the Committee on Publishing Policy, has worked effectively.

Lustig noted the Committee on Society Services and asked how it functions.

Koch remarked that perhaps its charter is too broad. It has not met this year because many topics are dealt with in other committees.

Boyce said part of the reason it has not met is that he did not want to continue as chairman. It could play several roles: better communication between Societies, better interface between the Societies and AIP in several areas. It should have been more heavily involved than it was in plans for the subscription fulfillment system. He agreed that its charge may need better definition.

Holcomb said one should never walk away from the possibility of eliminating a committee and wondered if this one could be eliminated. The entire function of the Institute is service to the Societies. His question would be if the smaller Societies have adequate avenues of approach to the Institute. It would be good to get an answer to this.

Boyce thought it could play a role. He thought the recommendations that had been made did not reach the right people in AIP. He said he emphasized a few years ago that the role of this committee was communication between the Societies.

Suntharalingam thought there was merit in having representation of the smaller Societies, as would be possible with this committee. The fact that it is inactive does not mean it is not important. Perhaps the new chairman could take a poll of matters needing discussion and consider how to attack them.

8. Status of Long Range Plan

Koch noted his memo regarding long range planning at AIP. The procedure has evolved and should be reviewed. Approval of the Policy Plan for 1987 has been deferred as a result of the change in management. He commented on an agreement drawn up recently with the ASA and read from the memo regarding the background on this. He has urged that the Executive Committee approve the letter of agreement. His point here is to inform the Board that there are important policy issues that need attention and he urged Ford and the Board to consider these.

Lustig asked why some of the matters discussed in Koch's memos are issues of long range planning. What constitutes long range as opposed to routine or operational planning?

Koch said the purpose of these items in the Policy Plan is for understanding of policies to be established by either the Board or by Management, so they are here for the reference of the Board. A mechanism is needed to call these to the attention of the Board. Koch said it is a matter of interpretation as to what is long range and what is short range; the Executive Committee did not always agree on his interpretation.

Wilson said that the Executive Committee felt these proposed policies were a mixed bag. Some needed to be discussed even though operational in nature, and others were clearly of a long range nature.

9. Report of Meeting of Committee on Public Policy, 6 March 1987

Slack reported on the recent meeting. Condell is pursuing two avenues regarding the federal budget. He prepared an extended report, now in draft form, on the budget which gives detailed steps on how it is drafted, presented, and analyzed. He will now do more analysis on it. The CPP thought the Societies had only a vague idea of the budget process, so this would be useful.

1. Recommendation on Congressional Fellow

   Slack, referring to his 11 March 1987 memo to Koch, said the CPP was asked to examine whether AIP should establish an AIP Congressional Fellow, particularly in view of the fact that some Societies already are sponsoring fellows. Two former congressional fellows who are members of the CPP attended this meeting. The CPP recommends that AIP proceed. If approved, we would need an ad hoc subcommittee of the CPP to get this underway. Development of a mechanism to establish it should not be difficult.

   Boyce said he sees a need for a Congressional Fellow. One-third of the congressional fellows have stayed there; others have utilized their knowledge in their next positions. Staff people on Capitol Hill move around; there is always a need for more people knowledgeable in science. It would be a good expenditure of AIP funds.

   Slack estimated the cost would be at least $50-60,000. The stipend for an AIP Congressional Fellow should be keyed to that of the APS Fellow.

   Lustig said APS had just completed a review of their program, which was favorable. Havens said APS has authorized two fellows, but last year they appointed only one as the number of good applicants dropped off significantly.

   Ford said there are 38 fellows on the Hill this year, of which only two are physicists: one from APS and one from AAAS. AGU supported a fellow who is a hydrologist. The number of requests for fellows exceeds the number available, and it is a well-regarded program. The need for more physicists (scientists) is great.

   Spilhaus said the AGU stipend is about $28,000. They look for someone on sabbatical or a young Ph.D. He has had a sharp increase in the number of applicants this year. Three well-qualified candidates got fellowships this year.

   Boyce made the following motion on behalf of the CPP, which, following discussion as reported below, was CARRIED, with five abstentions.

   MOVED that an AIP Congressional Fellowship Program be established, to be funded by AIP on behalf of the physics community, to consist initially of one fellowship of one-year duration, with the terms of the fellowship awards to be similar to those of the APS Congressional Fellowships.

   Grant asked what the schedule is for this. Slack said it would be geared to the 1988-89 academic year.

   Havens said APS announces it in their June/July Bulletin; their deadline is 31 December. Selection will be at the April meeting. They have a good pool of candidates. The term begins in September, except in a presidential election year, when it would start in January.

   Clark asked if, because of the urgency of having more physicist/fellows on the Hill, arguments could be made for funding more than one AIP Congressional Fellow?

   Havens said he would not want to see this as competition between APS and AIP. They would be drawing on the same pool and quality. If coordinated with APS, it would be useful.

   Strasberg said he was surprised at the idea of competition on this. Anderson agreed, saying he thought there should be a good pool from which to select qualified candidates.

10. Report of Meeting of Committee on Educational Policy, 11 Feb. 1987

1. Reports of Subcommittees: Physics Today, History, Education & Employment Statistics/Career Placement

   Slack noted the reports of these subcommittees contained in the attachments to the Agenda.

   Lustig asked the status of the committee reports which are supplied, and what should be done with them?

   Slack noted that many of the recommendations are a mixture of Board and staff recommendations. Perhaps a distinction should be made in the future. If Board members agreed with some of the recommendations, they should contact the staff liaisons or subcommittee chairpersons.

2. Gemant Award Subcommittee

   Holcomb, Chairman of this subcommittee, noted the members, and reviewed the background and bases of selection and award stipulations. Their selection for 1987 is Philip Morrison, of MIT. He read the citation that accompanies the award announcement.

   The following motion from the Gemant Award Subcommittee was unanimously CARRIED.

   MOVED that Philip Morrison (MIT) be named as the recipient of the 1987 Gemant Award.

   Frauenfelder noted that this starts the prize with someone who gives it distinction.

The meeting recessed for lunch at 12:05 and reconvened at 1:00 p.m.

11. Report of Ad Hoc Committee on Space Needs

1. Landauer Report

   Havens, Chairman of the ad hoc Space Needs Committee, read the motion passed by the Executive Committee meeting in its 20 February 1987 meeting, as follows:

   "Recommended to the Governing Board that, in order to consolidate AIP headquarters operations in a single location, AIP develop a plan for the replacement of the building at 335 E. 45th St. with a building owned by AIP."

   He said the information in the Landauer report was needed to approach this matter. He referred to the charge to Landauer, passed by the Governing Board at its October 1986 meeting. One surprise from the report was that downtown Washington, DC, property values were increasing rapidly; the cost of property there is about the same as in New York City. In suburban DC, land and construction costs are less. Landauer was not asked to investigate suburban New York. His conclusion was that the economics of the situation are not the governing factor. Amortized to the year 2000, the differences are negligible. The intangibles are the future of AIP and the direction of its activities. The worst options would be preserving the status quo or sale of New York property and leasing space. These are expensive and limit our operations. Intangibles are to be addressed by the Impact Committee.

   Quinn asked why the motion is here, and what is its intent? Havens replied that it was to establish the philosophy that AIP consolidate its headquarters space, and that it own, not rent, to that purpose.

   Frauenfelder said the intent is to set things in motion, but he agreed with the view expressed by some that the wording is not clear.

   After considerable discussion to clarify the motion, and the actions to follow (the motion was interpreted to direct the management and Executive Committee to proceed to develop specific plans), the vote on the motion was taken, with the result that the motion stated below was CARRIED with two abstentions.

   MOVED that, in order to consolidate AIP headquarters operations in a single location. AIP develop a plan for the replacement of its building at 335 E. 45th St. with a building owned by AIP.

2. Report of Committee re Impacts of Possible Space Decisions

   Ford reviewed the report of this ad hoc committee (Ford, Smith and Wilson). The report notes how AIP is currently deployed, the links between headquarters and Woodbury, and the options and variables. The report details a number of important intangibles: impact on people (recruitment of new, retention of old), impact on Member Societies, impact on management, impact on AIP's assets. The variables include long-term operating costs, wishes of Member Societies, ease of recruiting good staff, loss of key employees, ease of carrying out mission, management efficiency, convenience of volunteers, closeness to sister organizations and the government, moving costs, and short-term losses of efficiency and service associated with moving. Any recommendation depends on how these are rated. These factors, all of which are important, do not lead to one ineluctable conclusion. He thinks we now have enough data to move forward and form a representative, large committee to study the issue further.

   Quinn said some data are not here. Projections for New York are to the year 2000. Are there similar projections on a Woodbury site and can they be accommodated there?

   Marks said the Woodbury site can support another 50,000 square feet (double the present size). However, it is zoned residential, which inhibits our ability to expand and/or sell the site. Therefore, we are looking around in the area for other possibilities. The facility is now filled to capacity. We could rent space nearby or, in the long term, sell the present site and acquire a new location in the vicinity of Woodbury. We are currently able to handle our production needs, but cannot take on large amounts of additional work. We are now running a second shift in Woodbury. In New York we are renting space.

   Lustig asked if another option is headquarters on Long Island, possibly in the Brookhaven area, since the present Woodbury site cannot contain all AIP operations.

   Wilson said the Executive Committee did not consider this a competitive option.

   Clark asked what the current site expansion restraints are.

   Marks said it involves zoning concerns. A preliminary estimate is that we could double the present space with current zoning regulations. The present agreement with the Taxpayers' Association permits expansion but only in certain areas. There is not enough land to permit accommodation of both publishing and headquarters.

3. Formation of New Committee on Space Needs

   Frauenfelder suggested that a committee be formed with a charge to make a recommendation in September. A representative from each Society is needed. Unanimity cannot be expected. Members of this committee should be Governing Board members. He read his proposed slate of Member Society representatives, with Gilbert and Ford representing AIP. He would serve ex-officio. If more people are needed, he could add to the list. He invited reactions to this list; there were none. Their charge is to bring a recommendation to the Governing Board. The next 20 years will be shaped by this decision. If we move outside New York or DC, we would have far less impact on publishing or education.

   Havens moved the following, which was seconded by Clark. Following the discussion and a second reading of the list, the motion was CARRIED unanimously.

   MOVED that the Chairman of the Governing Board be authorized to appoint a representative Committee on Space Needs.

   Frauenfelder said that he will not select a chairman now, but rather will let the group select a chairman when they meet. AIP would call the first meeting. A person who cannot attend may send a replacement and see that some informed person does attend.

   [During the first meeting, held later in the day, Ford was elected chairman.]

12. Report of Meeting of Ad Hoc Committee on International Relations, 16 Jan. 1987

Beyer gave a preliminary report. The committee had come close to a recommendation for the formation of a permanent committee. He noted the considerable list of topics raised. They expect to have another meeting and make further recommendations.

13. Annual Report for 1986 and Authorization to Publish in Physics Today

The draft annual report was presented by Koch.

Landolt made the following motion, which was seconded by Lustig, and CARRIED unanimously.

MOVED that the annual report of the Institute for 1986 be accepted and authorization be given to publish it in Physics Today.

***
The meeting recessed at 2:45 p.m. and attendees assembled at 3:30 p.m. at the Woodbury Country Club.

Members of the Governing Board, members of Koch's family, and invited AIP staff and spouses convened at the Woodbury Country Club for a Symposium to Honor H. William Koch on His Retirement as Executive Director of AIP. About 100 guests were present. Frauenfelder introduced the three speakers. Donald W. Kerst (University of Wisconsin), who had been Koch's Research Director during his graduate studies at the University of Illinois, spoke about research done by their group, with accompanying slides. H. Richard Crane (University of Michigan), Chairman of the Governing Board from 1971-74, discussed and illustrated, with slides of his own drawings, some novel applications of physics. Norman F. Ramsey (Harvard University), Chairman of the Governing Board, spoke about recent progress and developments at AIP.

A reception at 5:30 p.m. was followed by a banquet at 6:30 p.m. Tokens of appreciation for Koch's dedicated 20 years of service to the Institute were presented to him following the dinner.

The meeting reconvened at 8:30 a.m., 28 March in the Woodbury Conference Room.
***

14. Financial Reports

1. Estimated 1986 Financial Statement

   Gilbert reviewed the estimated 1986 financial statement, starting with the Statement of Revenue and Expense, noting that it excluded Member Society operations. Operating Revenue: Subscription revenue is estimated at $13,261,200, reflecting mainly price increases over 1985. A small decrease is shown in page charge revenue. Not much change is seen in advertising sales. The figure for publishing operations increased as the result of an increase in pages published. In Non-Operating Revenue we realized $2.6 million, an increase of $1.3 million, as it was a banner year for investments. The Executive Committee, approving the recommendations of the Investment Advisory Committee, authorized liquidation of two investments in September 1986, realizing a profit of about $870,000. Also in 1986, the Executive Committee authorized the transfer of funds to long-term investment accounts. The total estimated revenue: $3.5 million in 1986, compared with $3.4 million in 1985. General Operations shows an increase of about $153,000, representing an increase in expenses of educational activities. The increase in the General and Administrative Expenses was about $360,000, primarily reflecting the Institute's absorbing the computer changeover cost and the writeoff of unamortized leasehold improvements at 216 East 45th Street.

   Wilson read the following resolution, which was seconded by Sickafus, and unanimously CARRIED.

   The Governing Board of AIP recognizes the outstanding performance of our investment program in 1986 and extends our thanks to Gerald F. Gilbert, who has been an important factor in this success.

   Marks said that in 1986 page charges were discontinued for JMP and RSI. We no longer delay papers for non-receipt of page charges. 1986 was the first year of that policy. The projection for 1986 was done in mid-1985. The estimate was based on several factors but it is very difficult to estimate precisely. We are trying to refine these projections so that they will be more accurate.

   Lustig said the increase in the volume of publishing is a serious issue. Page charges are going down but costs are going up. We are expecting library subscriptions to pay for these. He sees a long-term problem for all.

   Gilbert than reviewed the balance sheet (given in Appendix A). The assets and liabilities are presented in a fund accounting format. Total assets were about $39 million.

   Spilhaus asked if there was a deliberate plan to attain the $23 million needed for reserves.

   Gilbert said there was not. His recommendations for the goals were adopted in 1986 by the Executive Committee. Any net revenue over $200,000 which is maintained in the General Fund would be appropriated by the Executive Committee to these funds. He reviewed the funds and goals. The total of the goals for the designated funds is $23 million, against which we now have $14 million.

   Spilhaus asked if we should budget toward this. Gilbert said this was discussed by the Executive Committee. For 1987 we do show an operating loss for the first time, although the net revenue is up.

   Gilbert said these goals can be changed at any time by the Governing Board. A net operating loss was projected in 1987. In past years, the IRS raised the question of large accumulated income. To overcome this problem, organizations realized it is necessary to have stated purposes for funds and to apply them. Our goals have been approved by the auditors. It is a question of how investment income is treated.

2. Report on Approved 1987 Operating Budget

   Gilbert reviewed the summary statements contained in the 1987 Operating Budget approved in December by the Executive Committee. The purpose in giving these figures was to compile on one page the magnitudes of the operations. Total budget is $46 million. Page 2, Educational Activities, shows the total magnitude of the funding for educational activities. Page 3 is a Net Statement of Revenue and Expense (for AIP only). In 1985, the total net revenue was $3,443,500; in 1986, $2,836,000; 1987 projected, $1,104,300.

   Wilson noted that three areas in publishing show dramatic change: 1) real decrease in revenue from Soviet journals; 2) increase in PT expenses; 3) inflation rate in the G & A.

   Marks said the variation in Soviet journal income is caused by irregular publication schedules. The $2 million net in 1985 was created by a catchup schedule that produced more pages in 1985 than in 1986 and budgeted for 1987. Physics Today circulation increased mid-year in 1986 due to the addition of the AGU. He expects an increase in ad revenue will help cover this additional expense.

   Lustig expressed his appreciation for Gilbert's clear and informative format and explanations. He asked, however, that attention be given to Spilhaus' suggestion regarding crediting income to operations. We need an expressed philosophy for reaching the goals for the funds.

3. Report of Investment Advisory Committee

   Gilbert said the committee has been very active, having met six times in 1986. He reviewed their 6 February 1987 meeting. The most dramatic performer of the funds was First Manhattan, which shows 90% appreciation in three years. The Minis Co. account and the Resource Capital Advisers account were opened in September 1986. No changes are recommended in the portfolio at this time. He noted the review of the portfolio history. The total market value of our long-term investments as of last week was about $15 million.

   Quinn asked who the agent is for transfer of the securities. Gilbert said First Manhattan has a seat on the stock exchange so they hold those. Minis & Co. securities are held by Drexel Burnham Lambert.

   Gilbert said Havens had raised the matter of cancellation of Drexel Burnham Lambert's insurance. Their only insurance is to $500,000. Gilbert took the concern to the committee. He read the memo regarding his inquiry and the consultation with the committee. He took specific questions, including the matter of the insurance, to the vice chairman of DBL and received answers from him.

   In response to Quinn's comment that Aetna cancelled their insurance with DBL, Gilbert said Aetna did not renew their insurance as they were drastically curtailing their liability coverage. DBL then obtained coverage from three other carriers and has $10 million coverage. He has received a letter from a senior vice president which gives confirmation from these carriers. He gave the information to Krumhansl who asked him to prepare a memo and inform other members of the committee.

   Havens, said one of the carriers is a DBL subsidiary.

   Gilbert said this is a completely separate firm. Our account executive said his money is there; he would switch his personal money if he felt there were a risk.

   Quinn asked what the net benefit to AIP is in using DBL for this service.

   Gilbert said he will take these concerns to the Investment Advisory Committee for discussion in their May meeting.

   Havens noted that the market value of our DBL account on 1 January 1987 is not shown in Gilbert’s memo on investments.

   Gilbert said they do not give the market value. The committee wants the completion value. If DBL went under, they are so large that they would be supported by other institutions, to prevent a ripple effect.

   Havens thought it would be valuable to have both the market value and the completion value.

   Frauenfelder said he hears great concern. It would be good to speed up the meeting of the Investment Advisory Committee where these concerns can be explored.

   Barschall said even if we are convinced the funds are safe, we should be concerned about the perceptions of the Member Societies. There could be a lot of negative feeling. Could the Governing Board express something to the committee?

4. Actions re Drexel Burnham Lambert Accounts

   There was extensive discussion on this matter in the Executive Session at the conclusion of the meeting. Gilbert had not been asked to remain so he was not available for the discussion.

   The following motion was passed during the Executive Session:

   MOVED that the Governing Board direct the Executive Committee to act on the following recommendations within one week:

   1. To transfer our arbitrage account from Drexel Burnham Lambert (DBL) to another broker as soon as possible, or to liquidate this investment account.
   2. To transfer our securities held by DBL to another custodian as soon as possible.

   [Actions were promptly taken by the Investment Advisory Committee and the Executive Committee, as reported in the letter of 13 April 1987 to the Governing Board (attached herewith as Appendix B). See minutes of 7-8 June 1987 Executive Committee meeting for additional actions.]

5. Investment of Restricted Funds

   Gilbert reported, for information only, that these eight funds have been kept separate in the past. However, the bank can no longer maintain a separate investment advisory account for each. His recommendation was to consolidate all in a single pooled investment account at Bankers Trust Company. The Executive Committee had passed a motion authorizing this.

6. Financial Handling Charge for 1988

   Gilbert reported the action of the Executive Committee on the recommendation of AIP Management.

   The following confirming motion was made by Grant, seconded by Sickafus, and unanimously CARRIED.

   MOVED that the financial handling charge for 1988 be fixed at five-eighths of one percent of business done on behalf of Member Societies.

15. Status of AIP's Data General Dues and Subscription Fulfillment System

Dolowich reviewed the background. He distributed the appendix to a report from Sid Gudes of Productivity Improvement Enterprises entitled DSF Software and Procedural Items. Gudes had been asked to conduct this review. The Subscription Fulfillment Division is now involved in a mini-parallel processing, which has not shown major problems with the modules. Because the warranty period on the modules has expired, no one can now touch them to complete the needed software, because if we change a program, AZTECH will not touch it. The cash allocation program had problems in AIP testing; it was decided to scrap the AZTECH program and it was redone by an in-house programmer. Gudes reviewed the present and future assignments of AIP programmers and felt that AIP personnel are as capable as AZTECH. If we go it alone, our present computer facilities are not adequate for handling this. Approval was given in December for a new MV7800 for Accounting. The question now is whether to purchase this or a newer, more powerful MV15000. If we were to go further with AZTECH, we should have a time and materials rate arrangement, and should insist that the original programmers do the needed corrections in the programs they had worked on. Gudes states in his report that is hard to establish accountability in this type of situation. If we move the project in-house, not only would our computer be inadequate, but our staff would be adversely affected. It now seems likely that we can replace the Selectron module with a newly-available package, which will soon be demonstrated.

A motion made in the Executive Committee which would give management permission to spend $100,000 to complete the project with or without AZTECH did not pass. Now the next step is to resolve purchase of an additional computer.

Clark asked what the Executive Committee philosophy was in denying the $100,000.

Wilson said that any progress on this project has been made with in-house work. He thinks we have advanced the project by denying the $100,000, and thinks AIP can do this in-house.

Havens said the question was raised as to whether the Executive Committee would have to authorize additional staff. It was decided that it was not necessary to have approval for additional funds if this is necessary, as it can be done within current budget for the time being.

Frauenfelder said that at present neither AZTECH nor AIP has the computer to test the modules. Approval has already been given for the MV7800. The cost of the bigger one will be checked. AZTECH has not made money on AIP. To continue with them would have been more costly than before. The overall impression was that the project could be handled better in-house.

Lustig said it sounded reasonable, so why does AIP want to keep it with AZTECH?

Dolowich said the cash allocation program is being rewritten by AIP staff, and they are working on other programs. However, the staff think it is unfair to them to have to take over untested programs and possibly to rewrite programs, and it will slow progress. Regarding the $100,000 requested to proceed with AZTECH, he knows he could renegotiate the figure AZTECH would require and it would be less than this.

Landolt said if we have to spend extra money, it is better to spend it in-house.

Quinn asked how many man-years are necessary to do the needed programs.

Dolowich said these are critical programs. He could not give an immediate answer to this. We do not need a huge programming staff. People could be brought in on a temporary basis.

Greenler asked the order of magnitude of manhours to start from scratch.

Dolowich said AZTECH probably wrote the programs they did in not less than 1-1/2 man-years.

Holcomb said it seems to be a statement of policy to bring the project in-house. He trusts that Dolowich will have flexibility to manage the job.

Koch said the responsibility is now with Ford to make sure it is managed effectively. It seems the Executive Committee wants to encourage Ford to have flexibility. Koch's interpretation is that if it seems in a month that we need to get help from AZTECH, he would be free to do so.

Frauenfelder said he had heard nothing in his one year with AIP that AZTECH did. He has not seen that they have kept their word. He has a sense of frustration and a sense of only partial competence on the part of AZTECH.

16. Status of New PI-NET Computer

Merrill said approval had been given to spend up to $175,000 to replace the Datapoint and expand the capabilities of the PI-NET/PI-MAIL system. They recently looked at the Gould system which seems very appropriate. Management has approved the purchase. He reviewed the capital expenditure approval: $111,000 including installation and one year maintenance. The additional approval was for $17,000 for training. Delivery is expected in June.

There are now about 2,000 PI-NET users. AIP is starting new advertising and promotion campaigns. A new PI-NET administrator will start next week. Merrill will develop budget projections for PI-NET projects for the next three years.

Quinn asked if the possibility would exist for any Society to mount its own data on the PI-NET system and charge for it.

Merrill said in the new system there would be flexibility of arranging for charges or surcharges for different services. It would be possible for OSA to put up a database on it. AIP has just put the AAS job notices online. There are several ways to arrange the charges: 1) put on a Society account or institutional account, 2) through Publication Sales, 3) with credit card.

Barschall said one of the considerations of the Subcommittee on Information Technology was that there would be a financial plan. They are concerned about the cost of these services.

Merrill said some aspects of this are easy. The revenue part is up to management philosophy; he has to have guidelines and will have a draft plan by May.

Ford said the most useful initial approach would be a realistic three-year expense projection; options would be listed on how to meet the expenses through revenue sources, rather than to try to have a complete income and expense projection.

17. Publishing Concerns

1. Announcement of Editor for Journal on Computers in Physics

   Marks noted that Voss, who had been chairman of the search committee, was present. Marks announced that the editor of Computers in Physics will be Dr. Robert R. Borchers (Associate Director, Computation, Lawrence Livermore National Laboratory). The AIP staff is being assembled.

2. Talk on Primary-Secondary Publisher Relationships

   Koch noted he had been asked to give introductory remarks at a 1 March 1987 annual meeting of NFAIS. He stated the position of the primary publishers. This is the result of 15 years' experience in trying to understand the appropriate relationships between primary publishers and abstracters, especially where the primary service has developed a secondary capability as AIP has.

3. Letter to IEE

   Koch reviewed his 11 March 1987 memo to the Governing Board and his 6 March 1987 letter to Losty, Secretary of IEE (London). Physics Abstracts has for many years used our abstracts, thus preventing us from realizing income from our rightful property. AIP has, on the basis of Governing Board action of March 1986, engaged David Ladd as our legal counsel in this matter. He has reviewed the AIP/IEE relationship and has been helpful in pursuing this. His letter of 6 March has not yet been answered. It would be appropriate for Ford to write to them to ask for confirmation of receipt of the letter and to indicate their plans for response. If they ignore it, we may need to take a harder position.

18. Other Business

1. Replacement for Lewis Slack

   Ford said he had initiated a search for a replacement for Slack, who will retire in July. John S. Rigden (Editor of American Journal of Physics, Professor of Physics at the University of Missouri, and author of books on physics) had accepted the position and would be an officer of the Institute. A resolution is needed to enable him to serve in this capacity.

   The following motion was made by Grant, seconded by Landolt, and unanimously CARRIED.

   MOVED that John S. Rigden be designated an Officer of the Institute, as provided in Article X of the Constitution, and Articles I.2 and II.5/II.6 of the Bylaws, effective on the date of his employment by AIP.

2. Appreciation to Slack

   The following resolution motion was proposed by Clark, variously seconded, and approved by acclamation.

   The Governing Board of AIP expresses its heartfelt appreciation to Lewis Slack for his many years of dedicated service to the advancement of physics and physics education and for his unfailing warmth, friendship, and good humor as he has labored with members of the physics community on projects too numerous to count and too far-reaching to measure.

3. Society of High School Physics Students

   Clark said it would be appropriate for AIP to become involved with this organization. He suggests a journal aimed at this age group, a niche not heretofore filled. The Board could suggest this possibility to the CEP. It would be appropriate for it to be tied to Physics Today, as that staff is in place. AAPT can play a critical role in identifying interested students through the network of teachers.

   In answer to Greenler's question, Clark said the subscription would be to students, not teachers. Distribution would be thin, but it would be a stimulus.

   Frauenfelder said a one-page outline, with proposed ideas, would be in order. It is necessary to proceed slowly in developing a new journal.

   Slack said the SPS resonates with this idea. Their April agenda includes a topic on outreach to high school students. Information gathering is needed. The chemists had a costly experience with a journal aimed at high school students.

19. Fall Meeting Plans

Havens noted the fall IUPAP/Corporate Associates meeting plans and dates. The IUPAP meeting will take place 30 September-2 October.

Havens then moved, Sickafus seconded, and it was unanimously CARRIED:

MOVED that the fall meeting of the Governing Board be held on Tuesday, 29 September 1987, in Washington, DC.

The Corporate Associates dinner and reception will be held Thursday night.

20. Executive Session

The staff was excused at 11 a.m. for the executive session, which is reported in the official minutes only.

21. Adjournment – Lunch

The meeting was adjourned at 12:15 p.m., followed by lunch.