October 20, 1985

Executive Committee of the American Institute of Physics

Minutes of Meeting

1. Convene – Roll Call

The meeting was convened by Chairman Ramsey at 1:00 p.m.

Members Present
Norman F. Ramsey, Chairman of AIP
Robert T. Beyer
Roderick M. Grant, Secretary
William W. Havens, Jr.
H. William Koch, Director
David Lazarus
Melvin H. Mueller
Edward N. Sickafus
Jack M. Wilson

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

For clarity in presentation with reference to the printed agenda, events recorded here are not necessarily in the same chronological order in which they occurred.

2. Executive Session
The first part of the meeting was devoted to an executive session, with Koch, Gilbert, Marks, and Slack present. This is reported in the official minutes only.

3. Report of the Secretary
Grant reported that the draft minutes of the September meeting are not ready as yet, and would be presented for approval at the December meeting.

4. Report of Advisory Committee Meetings Held since September Executive Committee

1. Audit Committee

2. Committee on Educational Policy Subcommittees: Manpower, Public Information, Physics Today

3. Committee on Publishing Policy Buyers' Guide Subcommittee

   With the limited time available, it was decided to dispense with these reports (except as follows) as they will be discussed in the Governing Board meeting.

   Koch invited comments from Mueller on the Audit Committee meeting which had just concluded. Mueller said they had good interaction with both staff and auditors and are encouraged that the fiscal affairs of the Institute are in good shape.

5. Review of Actions and Principal Discussion Items from Governing Board Agenda

1. Item 5.A. - New Board Chair
   Grant suggested that it is not possible or ethical to suspend provisions of the Constitution or Bylaws; when the candidate is presented to the Governing Board a straw vote would be in order so that the candidate can become involved in Institute matters as early as possible.

   Ramsey said he has talked with the nominee and he is not in any rush to assume office; however Ramsey thinks he would like to know a straw vote in his favor has been taken.

2. Item 5.B. - Space Needs
   Havens said he sent a draft of his report of the recent meeting of the ad hoc Committee on Space by telemail or express mail to members of the committee. Foll1owing their comments the revised report was sent to Executive Committee members. If the Executive Connnittee agrees with the report, he will present it to the Governing Board.

   Noting that the report call for staff reports regarding possibilities for sites and space utilization, Ramsey said he sympathizes with the difficulty the staff has in preparing such reports.

   Havens said the committee recognizes these problems, but it is necessary to go through with the plan to1 have the staff develop these reports.

   Havens made the following motion, which was seconded by Sickafus, and unanimously carried.

   MOVED that the Executive Committee accept the report of the ad hoc Committee on Space Needs for presentation to the Governing Board.

3. Item 6.B. - Approval of New Governance Instruments
   Koch commented that work on this area had been continuing for two years. A great deal of discussion had resulted, finally, in very few changes. He felt the staff and management would like more guidelines and controls. There is more of a need for long-range planning.

   Lazarus said he has a strong objection to Article 6, Paragraph 2. The mechanism for holding a Governing Board meeting on an ad hoc basis, as allowed by this paragraph, would permit a simple majority (quorum) to overrule a minority {those not present). He asked that his objection be raised at the Governing Board meeting as he cannot be present.

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

   MOVED that the Executive Committee recommend to the Governing Board the adoption of the Constitution and Bylaws, with the note that Lazarus' objection to Article 6, Paragraph 2 be raised in the meeting.

   Koch said he had asked Lehrfeld to prepare the revised Articles of Incorporation, but this document had not been received as yet.

4. Item 7.C. - Involvement of Executive Committee in Policy Planning
   Koch said he will present viewgraphs in the Governing Board meeting showing the committees and issues to be faced by each. Gilbert will discuss restructuring of the financial committees. He noted that the Executive Committee wants more focus on AIP policies and these will be included in the evening discussions held prior to the all-day Executive Committee meetings.

5. Item 8.A.4)a)2)) - PHYSNET - Referral of Proposals to Committees

6. Item 8.B.4 - Audit Committee
   These were not discussed.

7. Item 8.B.5)a) - Data General Computer Project
   Dolowich reviewed what he will cover in the Governing Board meeting.

8. Item 8.B.5)b) - Financial Statements Ending 30 June 1985
   Gilbert distributed and reviewed the financial statements which will be presented to the Governing Board. In reviewing the statement of revenue and expense (which excludes activities for Member Societies), he noted the increase in revenue for 1985 subscriptions. This reflects a situation which involves an increase in translation journal pages published in the particular period covered; it is a matter of timing. The backlog has been reduced, and a stricter cutoff for closing the issues has been enforced. These developments resulted in an additional $800,000 net revenue in 1985.

   The drop in page charge revenue is due to the decrease in page charges. The number of advertising pages in 1985 was greater than in 1984. The increase in Member Society dues results from the dues increase from $1.00 to $2.00. The drop in Educational Activities is due to the transfer of production of the Directory and the GPAA from the Educational Branch to the Publishing Branch.

   Net investment income increased by about $353,000, due to the transfer of $2,300,000 from our short-term investment account to our long-term investments under professional management.

   In the expense area, Publishing Operations increased by about $1,500,000, primarily because of increased published pages.

   The bottom line reports an Excess Revenue, or net revenue of $2 million in 1985 compared to $1.2 million in 1984. The final Excess Revenue will be heavily dependent on the number of pages published during the last six months of 1985.

   He then reviewed the balance sheet, which is presented in a fund accounting format, with the following groupings: Operating Funds; Property, Plant and Equipment Fund; and Restricted Funds. Long-term investments are those in effect for more than one year. Fund balances are those set up in reserve funds. Accounts Receivable are in good shape. Total assets are now approximately $29 million; of this, total creditors' equity is $13,672,968 and the Institute equity is $15,322,450. Unrestricted Funds designated for special purposes are up to $8,000,000. These represent reserve funds; Gilbert reviewed the goals for these funds and the balances as of 30 June 1985. The stated total for the goals is $18.5 million.

   Ramsey asked how our special purpose funds are invested. He noted the questionable practice of some banks of placing investments from low-interest trust funds in higher income funds. Gilbert said all of the monies received for special purpose funds are designated in separate accounts managed by Bankers Trust. The bulk of these are in government securities, not bank funds, and can be traced.

   Lazarus asked how much of our investments are in securities. Gilbert said there are two sources: the cash management plan consisting, of money market instruments, and long-term investments, consisting of equities. They are about evenly divided.

9. Item 8.C. - Committee on Educational Policy and

10. Item 8.C.l)b) - Recommendations of Committee on Educational Policy
    Slack said that the report of this Committee will be made at the Governing Board meeting by the Chairman, Meyer. The chairs of the subcommittees were at the CEP meeting, and it was very useful for them to present their recommendations.

     

    The written report of the meeting of the Subcommittee on Public Information baa not yet been received, but issuance and distribution of four posters, all of which are now available, were recommended. The CEP was pleased with these and commended Kalson. They asked AIP to move ahead on the distribution and to look into poster sales also. The proposal for funding the Science Writing Awards was resubmitted to IBM again at their suggestion; they have since turned it down again. The subcommittee and the CEP are in favor of continuing to support it, even if no outside funding is found this year.

    [Page missing?] committee. The CEP approved Stuewer's proposal to use part of the Gemant funds year for cataloging the extensive collection of photos recently transferred from PT to the Archives. They saw this project as being in the spirit of the Gemant bequest.

    Their recommendations regarding the Physics Olympiad were that AIP should keep discussion open but should pursue this only if external funds should become available (not at the expense of other AIP activities). (This is essentially the same recommendation as that of the APS Committee on Education to the APS Council.)

    Slack said the committee enthusiastically endorsed Grant's proposal for a visiting physicists program. They thought we should look for outside support but that AIP should support it if such support is not found. The total cost to AIP would be about $20,000 per year over what the participating institutions would provide.
    The committee looked at a menu of things that a senior staff education fellow could do. This would be a rotating position. They thought this concept should be incorporated as soon as possible in AIP programs.

    The report of the Subcommittee on Manpower, which will be distributed to the Governing Board, has two chief recommendations. 1) The first project is to analyze the national statistical data on the teaching of high school science. The Division now has a second set of tapes on hand; the Subcommittee felt they, should get on with this project as soon as possible. 2) The second project is to examine how physics is taught in high schools. There are no methodologically sound data on aspects of this issue. They want AIP to start with a look at the high school membership of AAPT, even though this group represents the best of the high school teachers and is not representative of the country. They have had preliminary discussion with two state educational organizations. This will be an expensive undertaking, largely due to the necessary follow-up. The total cost estimate is about $100,000. Some sort of outside help 1 especially by way of entree into the educational establishment and help-in-kind, will be necessary. They urged starting to design the needed questionnaires immediately.

    Grant said the CEP is learning how to function but he sees potential problems. A number of constituencies are represented. He thinks there is not yet a good mechanism for the Executive Committee to consider and act on recommendations of the committee; too much is left to staff/management discretion. We need from the committee and from Slack an outline of what the proposals represent and the priorities. He asked what Slack is suggesting to the Executive Committee for actions.

    Slack said it is his intent to cost out what is implied in bringing in a staff education fellow. He has the figure for the visiting physicist program. He intends to present these figures as part of the 1986 budget.

    Koch noted the just-held meeting of the SPS Executive Committee. They heard a long-range committee report, which identified five priority programs without regard for funding. Some should get outside funding. In his long-range policy report to be delivered to the Governing Board, he looks ahead of the present space and staff requirements, as it is necessary to see the total picture and to consider priorities and allocations to three major areas: publishing, education, and public policy.

    Grant said that he noticed at the CEP meeting, with the sudden influx of Meggers and Gemant funds that people leap on funds rather than looking at the long range. He thinks policies are essential.

    Koch said, regarding the funding of special project, that the net income from the archival journals should be inviolate and plowed into the publishing reserves, but other parts of AIP income (books, conference proceedings, translation programs, etc.) could be regarded as sources of support for funding very important programs.

11. Item 8.D.2 - Letter of 12 Society Presidents

12. Item 9. - Workshops
13. Item 11. - AIP Involvements in International Conference
14. Item 13. - Future Meetings
    These items were not discussed.

6. Additional Discussion Items

1. Transition of January Exhibits to AAPT Management
   Koch noted that the change in management of exhibits for the joint APS-AAPT meeting in January was reported in September. AIP now has to negotiate with AAPT for the charges already incurred by AIP staff; 29 booths had already been sold and 20 additional were in progress; promotional materials have been developed. AIP and AAPT will need to get together to resolve these matters.

   Wilson noted that Greeley had a budget for all items related to this exhibit. The problems could be in two areas: any charges over budget figures, and areas where AIP and AAPT have both provided management to date. These will have to be split, including staff times, according to the proportionate activity.

2. Approval of Bank Resolution Covering New Bankers Trust Co. Disbursements Account
   Gilbert said that under our present dues and subscription fulfillment system, the heavy volume of subscription refund checks are handled as part of our accounts payable in the Accounting Division. Under the new system, subscription refund checks will be issued as part of the check processing procedure. The system will also issue a digitized reconciliation statement giving the account distribution of the refunds. Accordingly a new Bankers Trust Co. disbursements account is required.

   The following motion, as recommended by Gilbert, was made by Lazarus, seconded by Wilson, and unanimously CARRIED.

   MOVED that the AIP Treasurer be empowered to open a new disbursements account with Bankers Trust Co. to process refunds under the new dues and subscription fulfillment system.

3. Update on 1985 Capital Expenditures Budget and Review of Management Expenditure Approvals
   Gilbert referred to the Capital Expenditures Budget Status Report (distributed with the agenda). He noted that Management is empowered to approve expenditures up to $10,000; these are given at the end of the attachment.

   Grant asked how long old items, such as the 1983 entry for the HVAC upgrade, are carried. Gilbert said that the year-end budget report will get rid of the 1983 figures.

   1. Parking Lot Expansion at Woodbury
      Gilbert distributed an October 15 memo from Kranz to him regarding the parking lot expansion in Woodbury, for 35-40 cars. A budget item of $50,000 was approved for this expansion in 1985. Due to change in the design detail required by the Town of Oyster Bay Building Department and necessary replacement and building of soil, the project tota1 cost is now $63,200.00; a motion to approve this is needed.

      Marks noted that Oyster Bay regulations require extensive drainage, lighting, and large spaces per car. If we add to the building in the future, it would be best to build underground parking apace. There is not as much carpooling as in previous years.

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

      MOVED that the limit for the parking lot expansion at the Woodbury facility be raised from $50,000 to $65,000.

4. Report on Moscow Book Fair
   Koch referred to the report of his trip to Moscow with Marks and Howitt (Attachment B). In the past it was thought that marketing was unimportant, but this is no longer true. There is much competition for library dollars. AIP now has a large amount of money invested in and a large net income from the Soviet translation program. It is important to know the trends and how the Soviets see this picture. Management has wondered if the Soviets would eventually consider doing their own translations and having them marketed by an organization such as AIP. He thinks that AIP participation in the Moscow Book Fair and direct contacts with our Russian counterparts are important. He and Howitt took options on some available Soviet books. Several types of co-publishing arrangements are possible and need careful consideration.

   Marks said the issue of why we had not been getting first option on new journals, as had been agreed, was raised. We are now getting first option, and expect to continue to do so. Koch added that the Soviets had given two new journals to Gordon & Breech, and now may be regretting that decision.

   Beyer noted there are three issues involved: quality of translation, timing, and cost. Koch received complaints regarding the quality and timing of the translations in JETP. Beyer thinks the level of translation is of high quality; he suggested, after Scott's return and report, considering some internal checks on the quality of the translations.

   Scott will be going to Moscow soon with Adashko and Book (Soviet translation editors) and will talk with them further.

5. Report on Japanese Booksellers
   Koch noted his report on Japanese booksellers, whom he had visited following the Moscow Book Fair (Attachment C). He visited with Kinokuniya and Maruzen. We want to encourage competition in order to get the best deal for AIP. The staff will solicit proposals in one year to see whether to maintain the exclusive marketing arrangement with Kinokuniya or to return to the former plan.

   Regarding Maruzen's arrangement to publish Parity, which will use mostly material from PT, the first promotional issue has been published and will be circulated at the Governing Board meeting. We will get 20 copies of every issue.

7. Other Business

1. Future of Physics
   Havens said that questions about the future of physics have surfaced in many recent APS meetings: the number of Ph.D.'s has been decreasing, with increases in specialties which have industrial applications. Physics faculty are decreasing as positions have to be created in these other departments. The most complete data at present on this concern are the surveys in the Brinkman report. The genera1 feeling of APS committee members is that the report has not phrased what the real problem is; it does not address the question of the future of physics. His purpose in raising this concern is to ask whether and how we should obtain needed information to address the problem. He noted that the AIP Committee on Educational Policy had comparable discussions.

   Wilson said that AAPT has just discussed this and is addressing the problem in various ways; it is a central concern of the physics community.

   Ramsey questioned whether we are training enough people to fill the jobs which will be open. The age level of physicists in teaching institutions is rather high. On the other hand, spinning off into other disciplines may be a positive thing.

   Havens noted that for the first time more than 50% of the first year physics graduate students are foreign nationals.

   Grant thought the Executive Committee could raise these questions, but answers could not be found in such a meeting. The question is what kind of response there should be from AIP and its committees.

2. World Scientific Conference Proceedings
   Marks offered a progress report on World Scientific Publishers, which is undercutting us on conference proceedings. He distributed a 15 October memo from Lerner to Koch, in which she notes that the text in their proceedings is double-spaced, whereas ours is single-spaced; on the basis of "kilowords" our prices are comparable to theirs for paperbacks and substantially lower for hard covers. We are watching developments and are hoping to increase sales of our conference proceedings.

3. Legal Services as a Personnel Benefit
   Gilbert said that the Institute's fringe benefits are under continual review. An overwhelming response to questions to staff regarding desired services is for legal services. There is a new service called LAWPHONE, offered by the firm used for the prescription drug plan of the Institute. He has received proposals on this. The annual cost to AIP would be about $15,000. A 15 September 1985 article in Barrens recommends the service. A recent survey found that 85% of the problems for which employees take time off could be solved with this service. He read their compiled list of the most needed services.

   Sickafus said that his company is trying to expand benefits. They put down a sum and people choose areas in which they anticipate a need. Gilbert said this is called a cafeteria plan, and the Institute is not big enough for this kind of service.

   Gilbert said the presentation from the company is clear, without legalese. The proposal and related details will be mailed to the Executive Committee for consideration in December, but a decision is not required then. He is trying to find out what other organizations have it.

   Haven said this company specifies certain services. If the cost go up, they could drop certain services. This bothers him in way, because the company will do certain things, but the next step for an individual in any case would be to see a lawyer.

4. Resolution in Memory of Philip M. Morse
   Slack read his draft resolution in memory of Morse, Chairman of the Governing Board from 1975-80. Some editorial changes were suggested and will be incorporated when it is presented to the Governing Board.

   Beyer made the following motion, which was seconded by Lazarus and unanimously CARRIED.

   MOVED that the resolution in memory of Philip M. Morse, with editorial changes, be recommended to the Governing Board for adoption.

8. Adjournment

The meeting was adjourned at 5:00 p.m.