September 7, 1989

Executive Committee of the American Institute of Physics

Minutes of Meeting

1. Convene – Roll Call

Members Present:
Hans Frauenfelder, Chair
Peter B. Boyce
Kenneth W. Ford, Executive Director
Roderick M. Grant, Secretary
William W. Havens, Jr.
Shirley A. Jackson
F. Dow Smith
Martin Walt
Jack M. Wilson
Jerry M. Woodall

Members Absent:
None

Non-voting Participants:
Robert T. Beyer (ASA) (Th., Fri.)
Paul Carson (AAPM)
William A. Duax (ACA)
Kurt F. Wissbrun (SOR)

Guests:
Moran, Stahl & Boyer representatives:
Shari Barnett and Al Harris (Th. aft.)

Staff:
Robert E. Baensch, Director of Publishing
Arthur T. Bent, Treasurer
Theresa C. Braun, Director of Human Resources (Th., Fri.)
Darlene Carlin, Director of Journal Publishing (Fri.)
Timothy Ingoldsby, Director of Information Technology (Th., Fri.)
Beverly Fearn Porter, Manager of Education and Employment Statistics (Th.)
John S. Rigden, Director of Physics Programs
Nathalie D. Wagner, Assistant to the Secretary

Ford introduced Arthur T. Bent who had joined the Institute in August as Treasurer and
Chief Financial Officer.

2. Report of the Secretary

1. Minutes of 5-6 June 1989 Meeting
   The minutes of the 5-6 June Meeting of the Executive Committee were approved as distributed. Havens and Woodall commented that more details were necessary than had been provided in these minutes. Grant responded that his intent is to provide an accurate record of the meeting, but not a complete transcript. He asked members of the committee to comment on those portions of the minutes where amplification beyond what was presented seemed necessary.

2. Confirmation of Telephone Ballots
   The following telephone ballots were each CARRIED unanimously July 7, 1989:
   MOVED that the AIP Treasurer be empowered to open a bank account with the Chittenden Bank, Colchester, Vermont, in accordance with our distribution and warehousing agreement with the American International Distribution Corporation.

   MOVED that the appointment of Arthur T. Bent to the position of Treasurer be approved, and that the Executive Committee recommends to the Governing Board that he be appointed an Officer of the Institute as provided in the Constitution and Bylaws.

   The following telephone ballot was CARRIED unanimously July 21, 1989:

   MOVED that management is authorized to expend $52,000 for the purchase of extra disk storage for the FAMIS system.

   Grant said that he was troubled by the lack of guidelines in our Rules pertaining to approval of telephone ballots. The following motion was made by Grant, seconded by Woodall, and unanimously CARRIED.

   MOVED, as an Executive Committee Rule, the requirement that approval of motions by telephone ballot requires an affirmative, without dissenting vote by a majority of the Executive Committee.

3. Report on Action Concerning Proposed Constitutional Amendment
   Grant reported that the proposed Constitutional amendment to change the size of the Executive Committee had been defeated; both ACA and AAS reported that their governing bodies bad voted NO to the proposed amendment. All Member Societies were apprised of this result by letter from the Secretary's Office in June.

3. Report of the Chair of the Governing Board

1. Appointment to Gemant Award Committee
   Frauenfelder announced that be bad appointed Heinz Barschall to a three-year term on the Andrew Gemant Award Committee. The committee now consists of Arthur Schawlow, Chair (1990), Mildred Dresselhaus (1991), and Henry H. Barschall (1992).

4. Report of the Executive Director

1. Chaos Conference
   Ford reported that the AIP /VAAP sponsored Soviet-American Chao Conference, held 24-28 July 1989, had gone very well. Nine or the ten invited Soviet scientists were able to attend, and were joined by 21 U.S. scientists. Ford noted that important support of $25,000 for the conference had come from the Sloan Foundation, with a net cost to AIP of about $13,000. All those involved with the meeting deemed it a very useful and successful meeting, and recommended that Chaos also should be the topic of the second meeting, to be held in the Soviet Union in 1990.

   Havens said that he was very concerned about the nature and future of this aspect of our agreement with the Soviets. The conferences, required by the agreement, are limited in size and scope, are a divergence from AIP's normal activity, and are closed to all but invitees.

   Ford replied that the concept for such conferences was accepted eagerly by the Soviets, that they serve a purpose of fostering individual scientific contacts among colleagues in the two countries, and that they are built into the five year agreement with V AAP, the Soviet Copyright Agency.

2. Outline of This Meeting:
   Ford noted that the agenda for this meeting had been constructed to provide plenty of time for discussions or the issues before the committee, the principal one being the space needs of the Institute.

5. Financial Matters - Report of the Director

1. Status of Capital Expenditures
   Bent called attention to the status report on Capital Expenditures which had been included with agenda attachments. This includes additional authorizations since the 1989 budget was adopted, and an itemized accounting of expenditures authorized from contingency funds by the management committee.

   Bent distributed a memo, dated 5 September 1989, requesting changes in the capital expenditures budget in order to allow for extensive renovations at the Woodbury facility. The following motion was made by Wilson, seconded by Boyce, and was CARRIED, with one abstention.

   MOVED that Management is authorized to proceed with an expanded renovation project at the Woodbury facility at an estimated over budget variance of $59,000, and to effect savings in other 1989 budgeted Building Maintenance Projects in the amount of $54,000, so that the net over budget cost for these projects is held to $5,000 in 1989.

2. Report on Long Term Investments as of 30 June 1989
   Bent called attention to this report which had been prepared for the Investment Advisory Committee by Gilbert. This was provided here for information only. Wilson asked that his objection to investment in arbitrage, in principle and on ethical grounds, be included once again in the record.

   Several suggested a review of arbitrage investments on the basis of recent circumstances.

3. Touche Ross & Co 1988 Audit Letter
   A letter, dated 22 May 1989, from Touche Ross & Co. was distributed with the agenda materials for information only. It will be presented to the Audit Committee at their meeting prior to the Governing Board meeting in October.

4. 1990 Budget Guidelines
   This topic was not discussed at this meeting.

6. Human Resources

1. Implementation of Adjustments for Non-Exempt Employees
   Braun, Director of Human Resources, reported that the overall salary adjustments for nonexempt employees had taken effect on 1 July 1989. There remain a few equity adjustments to be made. There are sufficient funds in the 1989 salary budget to handle these adjustments, totaling $86,653, without a budget revision, largely the result of the fact that a number of authorized positions have been vacant.

2. Status of Study for Exempt Employees
   Braun reported that AIP and ORC are about three-fourths of the way through the analysis of these employees. Adjustments to minimum for exempt employees are to be effective as of 1 September. Equity adjustments will be handled during the normal review process when applicable.

   Braun was asked why the consultants seem to be recommending higher midpoints for each grade level than the market seems to indicate. She replied that in some cases AIP values the position more highly than does the external market. She also commented that the AIP stated job responsibilities often do not parallel outside market descriptions.

7. Long Range Planning
(A copy of Operational Planning, Executive Summary Report, *Draft* is attached to the official minutes of this meeting as Appendix A.)

Beverly Fearn Porter, Chair of the Long Range Planning Committee, reviewed the work of the committee, and the draft of its Operational Planning, Executive Summary Report which had been sent to the Executive Committee prior to the meeting. The development of this report involved intensive discussions over the past eight months, leading to the completion of Divisional Operational Plans which contain detail plans for the attainment of approved goals. She said that in most cases this has been a completely new, difficult, and enlightening process for the division managers. She invited comments on the executive summaries of these divisional plans, contained in the draft report, and emphasized that each of the full plans were available on request. Finally, she called attention to the ongoing process of long range planning as outlined on the final page of the report.

Frauenfelder said that there is a need to promote and emphasize the necessity of cooperation with the Member Societies, and to seek ways to help the Member Societies to achieve their goals. He called for comments.

Beyer said the membership of the Societies expect service; this is why AIP came into being and what it should be doing. Smith added that the service aspect needs to be highlighted more.

Smith asked whether there was a general fear of competition with AIP on the part of the Member Societies? He has heard APS express this concern, but not the other Member Societies.

Havens said that there is a problem with identification and therefore with competition as APS and AIP are viewed by many as being synonymous.

Wilson said that, within AAPT, there is a concern about competition, as AAPT, APS, and AIP all are involved in educational activities which is the major interest of AAPT. He agreed with Frauenfelder's comments that projects within the Physics Programs branch required cooperation and consultation with the Member Societies.

8. FAMIS Status Report
Ingoldsby, Director of Information Technology, presented the following report. He said that he expects the FAMIS system to be fully operational in time for renewal billing in October. He then reviewed the status of the development of the various components of FAMIS. He stated that, "other than the issue of performance of the system, no significant problems remain with Oracle's Wang version". It is expected that parallel tests on the FAMIS and UNIVAC systems will take place beginning in November and run for approximately one month before cutover is complete. Still outstanding is renewal billing selection, which is now in the final testing stage; samples will be generated for Member Society approval shortly.

Ingoldsby reported that electronic transfer of APS data has been tested and they are satisfied that AIP can produce labels for their non-member journals.

Ingoldsby next reviewed the steps that have been taken since the June meeting to identify and to correct problems in the response time of the ORACLE/WANG system. He also discussed briefly the performance work-around scheme which involved the purchase of additional disk storage. This has made it possible for inquiries of the database to be done separately via an indexed file, with file maintenance continuing in parallel using the relational database. With the additional disk storage, labels are now being generated in adequate time.
The performance tests requested by the Executive Committee in June were done at WANG in Lowell, MA, and were reported to the Executive Committee in late July. Representatives from ORACLE worked with WANG and concluded, after extensive testing, that ORACLE V5.1 is working at its maximum potential on this machine - five (5) users per MIP, although ORACLE had previously claimed, and he had reported in June, that it could accommodate up to ten (10) users per MIP. The next version of ORACLE, V6.0, is scheduled for release in late 1990.

An upgrade of the WANG CPU from VS7150 to VS8000, Model 70 (a newly released CPU) is on order, and should be tested by October 1. The VS7150 currently supports 18 users. Preliminary projections (based on Wang's internal tests and CPU MJP ratings) are that the VS8000 should support 38 users. The purchase of the VS8000 CPU is contingent on its passing an AIP benchmark test after installation.

Many of the problems have been with the generic Oracle version on any platform. The product had not been adequately tested. Savings from purchase of the less expensive Wang hardware have been eaten up with problems. A valuable part of developing this system with Oracle is that we can move it in the future.

This concluded Ingoldsby's report.

Note: The committee recessed for lunch at 12:04 pm. Further discussion of the FAMIS system, which took place at 4:30 pm the same day, was reported above for continuity of presentation.

The committee recessed for lunch at 12:04 pm.

The meeting resumed at 1:00 pm.

9. Space and Location Issues

1. Introduction - Present Space Situation
   Frauenfelder noted that three memos have been sent to the Governing Board and Executive Committee on this study since the first presentation at the June 1989 Executive Committee meeting.

2. APS Needs in Woodbury
   Discussed in relation to report of APS Task Force.

3. Moran, Stahl & Boyer Report
   Al Harris and Shari Barnett from Moran, Stahl & Boyer (MSB) were introduced and led the discussion.

   Harris said that MSB has been working on this project for four months. Their purpose at this meeting is to give an overview of the space needs of the Institute as gained from the interviews of management and Member Society representatives, to review the screening process used by MSB for the selection and evaluation of possible sites for the consolidation and relocation of AIP operations, and to outline the pros and cons or the finalist sites chosen for detailed study. At the October meeting(s) they will present a detailed financial analysis and their recommendations.

   MSB was retained because AIP currently occupies six sites in three cities, and is in need or additional space for its own and its Member Societies' operations. The role of MSB was to perform an objective location study involving the scenarios which had been developed by the Executive Committee and Governing Board. (1. Modified Base Case: remain in NY and on Long Island in more suitable facilities; 2. Relocate AIP to the Washington DC area; 3. Relocate to the most ideal location available.)

   Barnett outlined the steps which had been followed in the MSB study. Management interviews, interviews with Member Society officers, site visits to current facilities, and employee data were part of the information gathering phase of the project. Working with management and with the AIP organizational Table it was possible to identify (1) where Divisions currently carry out their responsibilities and (2) what linkages exist among functional blocks of Divisions (groupings which share responsibilities, and therefore which benefit from physical proximity to each other). [The blocks and their linkages are presented in the diagrams on the following pages, along with their assignment according to location scenarios studied.]

   Woodall asked what is the basis for the assumption that linkage implies geographical colocation?

   Ford replied that management feels that there is a strong case for keeping each identified block intact; the strong linkages suggest, but do not require, a geographical proximity of related blocks.

   Barnett, again with clarification from Ford, discussed scenarios and locations which had been considered:
   1. Base case; (status quo, except that location within Manhattan might change and Long Island location might change so as to reduce number of independent sites occupied by AIP).
   2. Consolidation of physics programs in DC; all the rest of AIP in a single (separate) location, except for a small office in NY.
   3. Consolidation of all of AIP in one place, except for minimum needs offices in NY and DC.

   MSB is working with Cushman & Wakefield (real estate firm), to identify suitable properties in NY and on LI. For sites outside the NY area, the screening required a multi-phase approach. 11 factors were used to rate 53 areas within two hours flight or driving distance of Washington DC. Factors considered included cost of living, accessibility, amount and type of publishing being done in the area, labor pool and labor costs, housing, etc. Various refinements led, through successive cuts, to three locations: (1) Base case (NY & LI), (2) Philadelphia, and (3) Baltimore. Finally, from several possibilities, Austin, Texas, was chosen as an example of a distant site for further study.

   Next, further research was done in the finalist cities of Baltimore and Philadelphia. Community profiles were developed, on-site interviews were carried out; these included selected local employers. Civic representatives in both cities suggested that incentives for relocation to their cities would be offered. [Barnett clarified that these are incentives offered to the buyer; MSB acts as broker and does not receive compensation from any other party involved in a relocation move.] A brief visit to Austin was made. She was warmly greeted there, but did not do any detailed onsite research.

   The MSB analyses of the scenarios, as summarized in her report, included:

   New York - Long Island
   Positive: least disruptive option; excellent accessibility; large publishing presence; large non-profit presence; excellent high education.
   Negative: tight labor market; high labor costs; high building/operating costs; continued multilocation operations; high relocation expense (within city).

   Baltimore
   Positive: good accessibility; slow and steady growth; desirable city-owned site on the waterfront; close to DC (one hour by train) but lacking the cost pressure found in DC; nearby universities; good labor supply; adequate publishing presence.
   Negative: Less public transportation; parking problems; attrition would be high; high moving expenses.

   Philadelphia
   Positive: lots of sites; many universities; accessibility; moderate growth; good mass transit; large publishing presence; excellent universities; major corporate presence.
   Negative: large growth in residential, industrial, and commercial sites is in the suburbs, which could affect future labor pools in the city; attrition would be high; high moving expenses.

   Austin
   Moderate operating costs; well-educated work force; poor air accessibility; adequate but small publishing presence; high attrition and moving expense.

   Woodall said he heard nothing in the presentation that conveyed the importance of the fact that most of the AIP business is done for resident Member Societies. He asked whether the possibility that these Societies might go their own route had been factored into the MSB study?

   Barnett said the issue came up in the interviews. Most of the resident member organizations indicated that, in the event of a move, they would re-evaluate their publishing needs and do their own space studies. She said she can't evaluate or address the possibility that some societies might leave the Institute if a move away from New York occurs. The Institute and the Member Societies need to think through what that would mean.

   Woodall said, as a member of the Executive Committee, he would be concerned if AIP lost half its business because it alienated resident Member Societies about leaving New York.

   Frauenfelder said it is unfair for resident Societies, without a detailed study, to threaten AIP with this possibility. We have to look at the best solution for AIP. The Societies have to remember that AIP is basically controlled by the Societies. If a Society leaves and goes to another publisher, they wouldn't have control of their publishing. If AIP is forced by financial considerations to take another site, the Societies have to decide if this is overriding. We would offer to share the building with Societies in another location. We have to review the scenarios and see what works best.

   Woodall said he is speaking for AIP business and interests, not for AVS. AIP is supposed to be primarily an organization for serving Member Societies.

   Grant said that as an AIP Board, we are looking continually at the services we provide the physics community as well as the societies; we have to be sure we haven't locked ourselves into high costs. AIP is obligated to review the costs to the Societies and to try to be competitive, and thus to look at other location scenarios which might result in lower costs.

4. Report on APS Task Force Conclusions
   Havens distributed a letter (8/1/89) and a memo (8/2/89) from Krumhansl. Havens stated that the conclusion of an APS task force, at a meeting held on 7/31/89, is that APS intends, for now, to investigate real estate possibilities within New York City.

   Havens then gave a brief history of the relationship between APS and AIP. APS was started as the first large society in physics. AIP was created to provide a professional staff to serve the societies, which were staffed by volunteers. Up until 1950, it was very small and many services were subcontracted. After World War II, it started expanding. Until the late 50's it was only concerned with publishing. Many of the AIP activities started with APS, (including Public Information, Statistics, Placement). APS has always had a vested interest in AIP. In the late 70's AIP attitudes changed; it became more interested in its own activities. An IRS ruling had made it evident that part of AIP's mission was to carry out educational and charitable work. Interdependence between AIP and the Societies is essential for it to continue; AIP is officially composed of Member Societies, not individuals. From the APS point of view, AIP in recent years has neglected its attention to the Member Societies. AIP has a very efficient publishing operation and APS doesn't want to change this service. On the other hand, he stated, other AIP services have dwindled and almost disappeared.

   The APS Task Force thinks that the best solution for the physics community is for AIP and APS to be co-located in the same headquarters building, with each having some equity in it. The important thing is that for AIP to operate, it has to have the close cooperation of the Societies. Physicists are in the labs doing research. Support for physics doesn't come from AIP or APS staff (from bureaucrats), but from those employed by national labs, universities, or industrial corporations. APS is strongly based in NY, draws its support from physicists in the area, and is looking to remain here.

   Havens went on to state that the real estate situation hasn't changed substantially since 1985; NY real estate is oversold. Weinbaum's conclusion in 1985 was a proper one: the only feasible solution is to build a commercially viable building on the 335 site. APS is large enough to operate independently but it does not want to do so; it prefers to have AIP provide needed services. He thinks a good cooperative arrangement can be worked out. APS does not want to be a publisher; if ATP were to disappear, APS would look for another publisher and not do it themselves.

   Baensch asked what the APS schedule is. Havens said he is supposed to have a report for the APS Council for its 13 November meeting.

   Wilson asked if APS would be interested in buying 50% of the existing building.

   Havens said they would not; the existing building is no longer viable; if we are to remain on that site we will have to rebuild. APS certainly would be interested in buying a portion of a new building on that site.

5. Report of Site Visits
   Ford reported on the AIP management tour of several sites. Baensch, Bent, and Ford had a one-day tour of each Philadelphia and Baltimore: Bent, Rigden and Ford had a one day tour in NY.

   Baltimore: a site in the inner harbor, adjacent to the aquarium, is available and presents an exciting possibility. The site is owned by the city, and may be made available to AIP at no cost. One reason it is exciting is that it would require a public education commitment by AIP and could involve the Member Societies: perhaps the first floor of the building could be turned over to hands-on exhibits, demonstrations, and a mini-museum. The neighborhood is attractive; the cost is reasonable. It could accommodate all of the AIP and foreseeable Member Society activities. The city would have to approve the design regarding its structure and use.

   Philadelphia: they were most attracted by a site at the Science Center, a non-profit center owned by 20 universities in the area; it is adjacent to the Univ. of Penn. and Drexel. Many services and a corporate infrastructure are provided by the Science Center.

   In NY they looked at sites on lower 6th Ave., near Greenwich Village-the Tribeca area, where the costs are lower. It takes a lot of imagination to visualize an attractive physics building there; the buildings are presently ugly and rundown. It makes one return to the possibility of rebuilding at 335.

   He reviewed rough building costs.
   Philadelphia, Baltimore: ca. $100 sq. ft.
   NY: ca. $200 sq. ft. (in lower cost "developing" areas)
   NY: nice area: $300 sq. ft.
   To rebuild in NY, it would cost about $200 sq. ft.

   Ford said that in his personal point of view, though he lives in Philadelphia, he sees substantial factors which favor the Baltimore site. He also agrees with the comments that we should keep both on the burner for strategic reasons, and should continue to investigate opportunities in New York. He said that he fully recognizes the tremendous importance of other factors that could lead to retaining NY: it is highly desirable to maintain close ties with APS and other Member Societies, and the retention of current valued employees is extremely important to AIP’s future.

   Frauenfelder said even if we elect to remain in New York, that doesn't solve the problem of Woodbury. He asked Baensch to comment.

   Baensch said that in his view, if we are to reduce costs, we cannot continue to increase the number of salaried employees working on AIP premise. This means we must consider increasing the use of cottage keyboarding (an effort in this direction is in progress) and we must investigate the use of offshore sites for composition (i.e. Ireland, Barbados)? He is grappling with these issues relative to the implementation of Xyvision now. He does not know if it will be possible to reduce the staff by the 30% needed to shrink Plainview back into Woodbury, but it may be possible to do this if the right path is chosen.

   Boyce asked what is meant by offshore. Baensch said it could mean anything with a PC-based
   system. Elsevier (based .in Holland) has 95% of its journals composed in Ireland at competitive rates. Implementation of Xyvision has slowed down investigation of these possibilities. In addition, a manual for author-prepared submissions, using TEX, is in preparation. It is not now known what impact this will have on employees, but any keystrokes captured off-premises will reduce costs. TEX is not the only software processing system; it is a matter of making floppy disks compatible with our system.

   Frauenfelder said it is good to hear that there may be two viable solutions. We should be pursuing all routes to the solution of our space problems.

6. ASA Needs in New York
   Ford said ASA has asked for additional space in NY. Management has replied that fornow those needs cannot be met.

   The committee recessed for dinner at 5:20 pm.

10. Executive Session
The Executive Committee (with non-voting participants, and officers of the Institute) met in executive session from 7:05-9:10 pm. Minutes of this session are included with the official minutes only.

9:00 am: Friday, 8 September 1989

11. Publishing Matters
(The following includes the text of the Report of the Director as distributed prior to the meeting plus comments made during the meeting.)

Report of the Director
In general the reorganization of Journal Publishing Branches I and II, and new management for Branch III is working out well. The Manager for the new Book Division II has completed his first three months with better than plan performance. The implementation of the Institute of Physics Books marketing, sales, warehousing, distribution and billing agreement effective since 1 June is on schedule. The Publications Business Manager and new Sales Manager have worked hard to carry out the inventory transfer and order fulfillment procedures within the past two months. Finally, the nonmember subscription lists for the Journal of Rheology have been transferred from John Wiley & Sons. All arrangements have been made to establish the editorial composition and manufacturing capabilities for the Society of Rheology's journal to be published by AIP as of the January 1990 issue. In summary, it has been three months of implementing the changes and the startup of several new commitments.

1. Computers in Physics
   Editorial content: The September/October issue reflects that all recommendations made by the Advisory Board during the 16 January meeting have been implemented. The publication has been repositioned effectively as a result of the good teamwork of Dr. Robert B. Borchers and Ben Bacon.

   Circulation: The total circulation number as of July 1988 was 11,055 and end of June 1989 was 13,652. On 10 July, a direct mail campaign was carried out to five lists with a total of 57,000 names and a goal of a minimum 2% response rate or 1,140 additional subscribers by the end of September. Marketing plans include continued space advertising, special offer of “Numerical Recipes” booklet, and exhibits participation for the next three months to collectively reach a circulation goal of about 15,000 by year end.

   Space Advertising: We have been able to land big name hardware advertisers {Apollo and Apple) and software advertisers (Symbolics and Wolfram Research). The September/October issue will have a record number of paid advertising pages within the second year of publication. A new Advertising Media Kit is in preparation to launch a fall sales campaign in September.

   Economics: Stringent efforts have been made to reduce as well as contain operating expenses for the start-up publication in its second full year of publication. The financial results through 1989 are:

   	1988 Act.	1989 Budget	1989 Proj.
   Revenues	$ 354,122	$ 526,000	$ 457,000
   Expenses	$ 1,042,290	$ 1,044,100	$ 789,000
   Income	$ (688,168)	$ (518,000)	$ (332,000)

2. Books
   We have been able to complete a detailed review of the AIP Book publishing programs to determine how we can discontinue the three year cumulative losses of $446,000 and focus on establishing print quantities that match sales expectations. Sales for the first six months are tracking close to budget for Conference Proceedings; they are somewhat "soft" for other Books Series:

   	6mo Actual	6mo Budget	Variance
   Sales of Conf. Procs.	$ 405,400	$ 400,000	+ 5,400
   Books	$ 108,100	$ 180,000	- 71,900
   Total	$ 513,500	$ 580,000	- 66,500

   Now, we have the challenge of bringing operating expenses and capital investments under control. Since 1 June, all new projects and all titles in production require Cost/Income calculations and a new Project Proposal form to be filled out and signed off.
   Operating Plans have been prepared for Division I (59 pp) and Division II (70 pp). These detailed documents are under review to determine how we can effectively identify priorities and develop books that generate income within the eight defined programs.

3. Book Warehousing and Distribution
   Having reached an agreement with the British Institute of Physics for their Book Program, it became necessary to develop external capabilities for the warehousing and distribution of 300 to 500 book titles. We prepared RFP's for ten candidate companies and reached an agreement in June with the American International Distribution Corporation, Colchester, Vermont (near Burlington). Book orders will be filled faster at lower costs to a broader wholesaler, retailer and direct customer base.

   All IOP inventory stored at Taylor and Francis in Philadelphia has been transferred to AIDC in Vermont. The AJP and Member Society book inventory is still in the process of being shipped (9 full trailer loads), booked in, sorted, counted and shelved.

   Sales have been recorded and documented in new computer based format for title, author and customer information for June and July billings by AIDC. The detailed and multiple format monthly reporting within ten days after the close .of each month will provide excellent and timely information for marketing, sales, editorial and financial management. An audit carried out on 17-18 August of the inventory, accounting procedures and customer services has resulted in full approval of AIDC's capabilities.

4. Soviet Programs
   Journal Translation Program: Maya Flikop has been promoted as the new manager of the AIP Translation Program. She has developed procedures for accelerating the translation and editorial work for the eight AIP journals from a present schedule of about 6 months down to 3 to 4 months. Meetings have been held with Plenum to develop the same accelerated schedule for the 11 journals that Plenum produces for AIP under contract.

   Five problem journals: Preparations have been made for J. T. Scott to go to the Soviet Union in October and meet with both the Editors and publishers of the five Translation Journals that are not providing a net income. Discussions will take place to identify editorial, production and circulation solutions without endangering the overall VAAP agreement.

   Two new Soviet journals: During the fall of 1988, Mezh Kniga offered the English language rights and negotiated agreements for the publication of two journals published by research institutes in the Soviet Union. It was a very competitive and difficult negotiation process; however, AIP was awarded the contracts for Superconductivity and for Atmospheric Optics. The past six months have been a tedious process of working with the respective institutes to help them develop their translation, editorial and production capabilities.

   1) Superconductivity: Delays continue to be experienced in the production of the first English issue. However, we now expect shipment of the first issue by the end of August, based on a meeting held in New York with Prof. Ozhogin on 2 August. The only advantage is that we have not invested in the translation and production as we really serve only to edit the manuscripts and then serve as the subscription agency.

   2) Atmospheric Optics: The journal is co-published with the OSA. The first English issue was received in mid-June, which in schedule terms was acceptable. However, the design, composition anti printing is not really acceptable. Action taken: R.E. Baensch met with Prof. E. P. Gordov, the production editor, in Moscow on 6 July; Prof. V. Zuev met with Jarus Quinn and J. T. Scott in Washington on 20 July; and Prof. Gordov will visit ATP for one week from 5 - 10 September.

   Future goals: Since April 1989, it has been decreed in the Soviet Union that any academic institute is able to negotiate with any Western country commercial or not-for-profit organization directly to establish cooperative agreements that result in hard currency income. Agreements include full expenses-paid visits by Soviet scientists, translations services in payment for computers and instruments - no agreement is too small under the new regulations. There is no longer the restriction of having to work through the official government organizations such as Mezh Kniga and VAAP or government approved publishing houses such as MIR or Nauka.

   It will be important for us to determine AIP's future role in the Soviet academic information services and publishing community. Our participation in the Moscow International Book Fair will have a very critical role to identify what influence the current political and economic transition will have on our present agreements. Dramatic changes are taking place rapidly. The Soviet Translation Program represents $1,800,000 net income to AIP for 1989 or 38% of the total net AIP Publishing Program income. We must determine how we can be proactive rather than reactive to what is happening in the Soviet Union.

5. Xyvision System
   Darlene Carlin, Director of Journal Publishing, reviewed the progress made to date in implementing the first phase of installing the Xyvision system. The timetable has slipped from the dates outlined in the initial proposal. The system, as delivered, had several bugs which prevented as a smooth and rapid a transition as had been anticipated. These mainly included problems in the math package. Most of these have been addressed and progress is being made at the present time. Over the next six months acceptance testing of the system will be done, and then actual commitments will be made to proceed with the complete Xyvision system. As a part of this project, the entire operation of Publishing Branches I and II has been streamlined, resulting in a savin8" amounting to a reduction by 10% in the staff. They are on budget with the project.

   Concerns with cottage industry procedures were discussed. Braun stated that if we supply equipment, these people are considered employees. They are employed by the hour.

12. Physics Programs Matters
(The following report includes the text of the Report of the Director as distributed prior to the meeting, plus comments made during the meeting.)

Report of the Director

1. International Physics Olympiad
   The U.S. Team came home from the competition in Poland with top honors. Steven Gubser, from Englewood, Colorado, was the top competitor and won a gold medal. Jason Jacobs from Baldwin, N.Y. and Derrick Bass from Miami Beach, Florida won bronze medals. James Sarvis, Alexandria, VA received an honorable mention and Jessica Millar, Madison, WI, was recognized as the youngest competitor at the meet.

   Wilson said more press coverage would be desirable. Rigden showed the related AIP press kit, but said educational media contacts need to be cultivated.

2. The Washington Office

   1. New Space for Education Division

      The Education Division is expected to move into new quarters across Florida Avenue from the AGU building later this month or early in October.

   2. Washington Satellite
      Richard Jones has joined the Public Information Division and will work out of the Washington office. He brings experience as a legislative assistant to two Congressmen and as a Senior Research Associate with Impact Assessment Institute.

3. AIP Senior Education Fellow
   Jorge Barajas has been invited to serve a second year as the Senior Education Fellow.

4. Gemant and Meggers Awards
   Advertisements are scheduled to appear 'n Physics Today and AJP inviting nominations for 1990. The deadlines are December 31, 1989 and March 21, 1990 respectively.

5. Proposed Advisory Committee "Addition"
   The Advisory Committee for Employment and Educational Statistics and Career Placement has recommended that separate advisory committees be established for each division. This recommendation will be brought to the October meeting of the Executive Committee.

6. Visiting Scientist Program in Physics
   The records for this program have been transferred from Washington to New York. For the next year at least, this program will be run out of the office of the Director of Physics Programs.

7. Introductory University Physics Project. Phase III
   The preliminary proposal for IUPP Phase III has been written and reviewed by NSF staff. A final proposal will be sent to NSF later this month.

8. Project SEER
   We are beginning the second year of this project. This summer a three-week Physics Institute and a one-week Equity Institute were conducted for the elementary school teachers of University City. Sallie Watkins, who has participated in several workshops and institutes for elementary school teachers, said it was the most successful such program she had ever witnessed. During the 1988-89 academic year, a Curriculum Guide which integrates content and equity issues was written for grades K, 1, and 2. This guide will be released on November 17. During the present year a Curriculum Guide will be developed for grades 3, 4, and 5.

9. NSTA Proposal
   Rigden referred to a paper, "Essential Changes in Secondary School Science: Scope, Sequence and Coordination" by Bill G. Aldridge, Executive Director of NSTA. The paper had been discussed by the Committee on Physics Education, and the position advanced within the paper had been endorsed by the committee. Rigden suggested that it would be appropriate for the Executive Committee and Governing Board to lend their support to the thrust of Aldridge’s proposals.

   Wilson seconded Rigden's support for the concepts Aldridge outlines, and of the importance of these types of activities for the scientific community. He pointed out that the drop out, from the study of math and physics, of both women and minorities might be reduced were this kind of program to be widely adopted.

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

   MOVED that the Executive Committee recommends that the Governing Board endorse the concept of an increase in the quantity and quality of science instruction in the middle and high school years, and in particular in the study of physics topics throughout those years, as for instance outlined in the paper by Bill G. Aldridge, "Essential Changes in Secondary School Science: Scope, Sequence and Coordination".

   Wilson and Jackson agreed that they would draft an appropriate form of this statement for consideration by the Governing Board at its October meeting.

13. PINET Status Report
Baensch reviewed the recent history of the PINET project, leading up to the new "beginning" on 1 September. He stated that, though he was giving this report, Lawrence T. Merrill has been given administrative responsibility for PINET. As of l September, access to PINET (including the incorporation of PIMAIL into that system) is made via an 800 number rather than through the Telenet carrier. All registered PIMAIL users were notified of the changeover, and have been given immediate access to the new system (through their existing accounts).

Initially available through PINET, in addition to a MAIL facility, are such items as (1) search capability for databases such as GPAA, Phys Rev Abstracts, Directory of Physics Faculties, and SPIN, (2) AIP and Member Society Announcements and News (including, e.g., "What's New" from APS and information from Computers in Physics), (3) Bulletin Boards, and (4) Online Registration and Ordering capability.

A business plan for the operation of PINET is under development, and will be presented to the Executive Committee at the December budget meeting.

14. AIP's Mission in the Future
Ford quoted the mission statement which had been adopted a year earlier: "It is the mission of the Institute to serve the sciences of physics and astronomy by serving the Societies, by serving individual scientists, and by serving students and the general public." He said that he saw no reason to change either the order or the emphasis of this statement. AIP must continue to be very conscious of providing both cost effective and efficient services. He recognizes that the reality is that some societies will want to take on some things themselves rather than to continue to have AIP do them, and others will turn to AIP for services; there will continue to be trade-offs with gains and losses in services provided to the individual societies.

Woodall expressed concern over requirements for Member Societies: all Societies have equal vote but there is a tremendous discrepancy in services. Some Societies have no or few services, yet still make decisions.

The Executive Committee recessed for lunch at 12N, followed by a free afternoon and a reception and clambake at 6 pm.

9:00 am: Saturday; 9 September 1989

15. Development

1. Status of Recruitment of Development Officer
   Ford reported that the process of recruiting a Development Officer had been slow so far. A Washington DC search firm has been engaged - Paul Stafford Associates - and has identified five "finalists". Interviews will be conducted in early October. Members of the AJP Committee on Development, and selected Member Society representatives, will be included in the interview process. He plans to make an appointment by November 1, with the person on board early in 1990.

2. APS Task Force on Development
   Havens said that this APS Task Force was comprised of Toll (chair), Fleury, Marshak, Orbach, and Robinson, with Lustig and Schwartz .as staff liaisons. Their report will be presented to the November meeting of the APS Council. They will recommend some level of development activity within APS. They have identified need for support of the physics planning committee, physics education, and the Washington DC office so as to provide relief from dues increases which would otherwise be necessary to support these activities.

   Ford said that he hoped there could be cooperation between the APS efforts and the AIP Development Committee. It is his desire that a long term view of the need for sustaining funds be developed, and not just a focus on short term, immediate project needs.

16. Other Business

1. Review of Gordon & Breach Complaint
   Richard Meserve, attorney representing AlP, APS and H.H. Barschall in the case involving complaints by Gordon and Breach, Inc., was present. [He happened to be at the Woods Hole NAS Study Center attending unrelated meetings which overlapped with the Executive Committee meeting.] He traced the history of the complaints lodged by Gordon and Breach, and outlined the status of the law suits which had been filed in Germany, Switzerland, and France. He stated that it was his view that the charges are frivolous, and that the courts in these countries will understand this and will rule in our favor. He is in the process of engaging law firms in each country to represent our interests.

2. Corporate Associates
   Ford referred the committee to the program of the upcoming Corporate Associates meeting, to be held at the General Motors Research Division in Warren, Michigan, for information. The President's science advisory, D. Allan Bromley, has accepted an invitation to address the gathering. Steven Gubser, winner of the 1989 Physics Olympiad, will be invited to attend and briefly to address the banquet audience.

3. Proposed Chaos Journal
   Ford reported that there was considerable enthusiasm expressed by the Soviet participants at the AIP/VAAP Chaos conference this summer for the creation of a joint AIP / Soviet Academy of Science publication, perhaps titled “Journal of Nonlinear Phenomena.” The publication most likely would be done by AIP, and in English. He emphasized that the expression of need seemed to be coming principally from the Soviet side. U.S. participants have been quite lukewarm about the idea.

   Baensch said that he wanted to proceed with both qualitative and quantitative market research to see about the potential viability of a new journal in this area.

   Havens said he was concerned about the creation of new journals at this time. Why was this to be an AIP journal, rather than an APS journal? Articles submitted to the Physical Review are segregated by topic, which helps to identify when new spinoffs are possible, or necessary. This didn't appear to be happening in the suggested area of this journal.

   Wissbrun wondered if tying it to Russian scientists might cut off other countries. He suggested bringing it to the Subcommittee on Journals.

   After some discussion, Frauenfelder stated that criteria to be applied in deciding whether a journal belonged to APS or AIP might be the scope of articles to be included: physics, including mathematical physics, only (APS) versus a mix of economics, mathematics, astronomy, physics, geophysics, and/or meteorology (etc.) (AIP) and ,that it should be looked at in consultation with APS.

4. Format of Executive Committee and Governing Board Meetings
   It was generally agreed that agendas for meetings of the Executive Committee and Governing Board should provide ample time for discussion of reports as well as issues raised at the meetings. To the extent possible, reports should be prepared and distributed in advance, and proposed motions or actions drafted and included with the agenda. Frauenfelder's rule suggests that time for discussion should be two-to-three times the time allocated for reports.

17. Future Meetings

1. Agenda Items for Governing Board
   Space needs will be the principal item on the Governing Board agenda. Moran, Stahl & Boyer will make a presentation, including their financial analysis and recommendations. Woodall said the MS&B report should reach people prior to the Governing Board meeting, so that Member Societies and management will have an opportunity to review it. Member Societies will be invited to make short statements, and ample time for discussion among Governing Board members should be allotted. It should be made clear to all that some kind of decision will be made at the time of the March 1990 Governing Board meeting, and that Member Societies will be asked to discuss the space needs issue and to report to each other and to AIP in the interim between the October and March meetings.

   (See conclusion of minutes for list of future meetings.)

18. Executive Session
11:40 am. The Executive Committee met in executive session. The minutes of this session are reported in the official minutes only.

19. Adjournment
The meeting was adjourned at 12:33 pm.