September 8, 1988

Executive Committee of the American Institute of Physics

Minutes of Meeting

1. Convene – Roll Call
The meeting was convened by Hans Frauenfelder, Chair of the Governing Board, on Thursday, 8 September 1988, at 9:00 a.m.

Members Present:
Hans Frauenfelder, Chair
Peter B. Boyce
Kenneth W. Ford, Executive Director
Roderick M. Grant, Secretary
William W. Havens, Jr.
F. Dow Smith
Martin Walt
Jack M. Wilson (Thurs., Fri.)

Non-voting Participants:
Murray Strasberg (ASA)
Jerry M. Woodall (AVS) (Thurs., Fri., 1/2 Sat.)
Joseph M. Reynolds (MAL)

Staff:
Robert E. Baensch, Director of Publishing
Gerald F. Gilbert, Treasurer
John S. Rigden, Director of Physics Programs (Thurs., Fri.)
Bernard Dolowich (Thurs.)
Timothy C. Ingoldsby, Director of Information Technology (Thurs., Fri.)
Donald F. Kirwan, Manager, Education Division (Fri.)
Paul A. Parisi, Manager, Special Projects (Thurs., Fri.)
Nathalie D. Wagner, Assistant to the Secretary
Spencer Weart, Ma ager, History Division, and
Chair, Long Range Planning Committee (Thurs., Fri.)

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.

1. Introduction of Robert E. Baensch, Director of Publishing
   Robert E. Baensch, the new Director of Publishing, was introduced by Ford. Baensch expressed his pleasure at being part of the AIP organization.

2. Report of the Secretary

1. Minutes of 9-10 June 1988 Meeting
   The minutes of the 9-10 June 1988 meeting were approved as distributed.

3. Report of the Chair of the Governing Board
Frauenfelder noted that problems we face are of two types: easy and insoluble. He asked that there be a positive spirit during the discussions.

4. Report of the Executive Director
Ford referred to his remarks, "Issues Facing the Institute", which had been part of his Annual Report. He plans to present a more extensive report on his first 18 months in office at the October Governing Board meeting. The most significant changes have been in management personnel, and from these flow changes in and additions to programs. Since he became Executive Director, additions have included (in order) Rigden, Ingoldsby, Baensch, and Kirwan. Recently the title of the Manager of the Personnel Division was changed to Director of Human Resources, a change which reflects the importance of personnel issues.

He then highlighted several areas:
• Education: the move to Washington DC has been effected, there is a new Manager of the Education Division, and one additional staff person has been added in the Division. There is a new Senior Education Fellow in that office as well.
• Publishing: We need to study harder the costs associated with the quality of our products. We want to build depth and breadth in the publishing program.
• Society services and relations. There is always a sense of competition and stress among the Societies and AIP; AIP has to improve its customer orientation; there is also a need to recognize AIP as an independent organization.
• Physics education. There is a lot of enthusiasm and energy present now. He thinks it is very important, as we move into these areas, that we have support and consensus of the Executive Committee and the Governing Board. We need to make sure that the staff and the Governing Board are on the same wavelength.
• Fund raising. A positive recommendation has been made by the Development Committee.
• Public policy activities. There had been some strain due to the excellent APS Office of Public Affairs, so AIP has backed off. He envisions a new approach which capitalizes on our strengths, and places emphasis on public information and education as they relate to public policy.

5. Financial Matters

1. Computerization of the Budget
   Gilbert, referring to the 22 August 1988 memo from Dolowich on this subject, said the computerization of the budget has been completed. It will be used for preparation of the 1989 budget. The next phase involves computerization of prorations, which is very complex.

   In response to a question from Havens, Dolowich said that the format used is that of the current budget. It would be necessary to develop new programs to see the budget in a different format.

   Gilbert explained that the budget now consists of 120 pages. APS has requested the ability to extract those budget pages which relate to their expenses. He said that it will be possible to do this for any Society in time for the 1989 budget.

2. Touche Ross & Co. 1987 Audit Evaluation Letter
   Gilbert referred to the 31 May 1988 letter from Touche Ross to Ford and to the 22 August 1988 memo from Dolowich which reviews the auditor's letter. The latter is a useful tool and is reviewed by the Audit Committee. This year the letter was very favorable, and showed both that AIP had responded to last year’s recommendations to their satisfaction and that they are pleased with AIP's internal controls.

3. Status of Capital Expenditures
   There were no questions on the status report of capital expenditures of the Institute, including a 31 August memo from Gilbert correcting the expenditures to date for the subscription fulfillment system to $596,672.

4. Status of the IRS Tax Case
   Gilbert referred to his 24 August 1988 memo to the Executive Committee. He reported that Lehrfeld (AIP's attorney) had not received an answer to his inquiry sent to the IRS Appeals Officer regarding the current status of this case. The issue in question would affect many non-profits. Lehrfeld thinks the lack of response is in our favor.

5. IOP Contract
   Gilbert referred to his 24 August 1988 memo to the Executive Committee on the IOP Contract. He visited the IOP in June and secured a renewal for 1989 with the same commission rates that we currently receive. The IOP is pleased with our arrangement.

6. Report of the Investment Advisory Committee

   1. Confirmation of Telephone Ballot on Investments
      Gilbert noted the report of the 15 August 1988 Investment Advisory Committee Meeting. This Committee recommended the following motion to the Executive Committee, and a phone ballot was taken on the motion as there was the need for prompt action. The motion was CARRIED unanimously (with the exception of Walt, who was on travel status and not available).

      MOVED that the Treasurer be authorized to liquidate our holdings in the Criterion U. S. Government Institutional Trust and re-invest the proceeds in the Mutual Shares Corporation.

      The amount of the liquidation was $1,075,000 (rounded).

7. Report on the Cash Management Plan
   Gilbert referred to his 24 August 1988 memo to the Executive Committee, reviewing the Institute's cash management plan and investment portfolios, and distributed a handout showing AIP Net Cash Flow for 1 July 1987 - 30 September 1988. He then explained how the cash management plan operates. AIP normally forwards collected dues to the Member Societies upon receipt. If the Institute cannot pay immediately, short term interest is paid the Society on the due amount from day of receipt. There is a problem for AIP. The Societies are billed at the end of the month for expenses incurred on their behalf. If we pay a publishing bill for a Society and the Society delays payment, the Society in effect is earning interest on Institute money.

   Dolowich reviewed a graph which illustrated monthly cash needs of the Institute, and therefore the amounts that must be available in the cash management plan. In response to a question from Smith, Gilbert said that the minimum balance required is $4 million. There ensued a discussion of the operation of the plan, of the balances required to meet monthly needs, and of the relationship of this plan to other AIP income and investments.

   After further discussion, Frauenfelder commented that the issues being raised cannot be solved in this meeting. He suggested that management prepare a daily record of cash balances over a months period as a means to better understand how the plan was functioning, and to answer the questions posed at this meeting.

6. Publishing Matters

1. Report of the Director of Publishing
   Baensch said he is reviewing internal and external issues with which AIP is involved. He wants to approach the budget in each division with a more participatory style. He believes savings can be affected in areas such as automatic page makeup, freelance work, and printing (the latter especially in the area of the translation journals). He noted also that we cannot continue to have erosion in journal circulation. He called attention to the 5 September 1988 article from The New York Times: "American Libraries Are in Crisis over the Cost of Scholarly Journals." (Copies were distributed at the meeting.) AIP has not had an aggressive program of marketing nationally or internationally; we can now take advantage of the low dollar and promote our publications internationally.

   In his meeting with Lerner (Manager of the Books Division) they discussed the need to develop a strong book program in the next three years. She sees several areas in which to proceed: proceedings, translations, reprints, and handbooks or reference books. We must develop sources and uses of capital. A book program is cash-intensive at the beginning stages, until a back list is built up. He wants a detailed book program proposal by the end of the year.

   He plans to work with Howitt (Manager of the Marketing Division) to develop a detailed 12-month plan. Use of funds has previously been discretionary rather than by an overall plan. He wants to develop international marketing, with specific countries targeted initially including Germany, the Netherlands, and Scandinavian countries, and Japan.

2. Status of FIZ Agreement
   Baensch has had phone conversations with FIZ officials. Though the agreement is not yet signed, there seem to be no problems in Germany which would prevent its completion.

3. Report on Soviet Journal: Atmospheric Optics
   Baensch referred to correspondence with A. Y. Belestotsky (Deputy General Director of the Soviet agency which publishes the journal) giving our analysis and proposed terms for this arrangement. He reported that he had just talked with Martin Levin (representing AIP's interests) who is presently in the Soviet Union. Levin reports that negotiations on our undertaking this journal are back on track. Baensch said we are very fortunate to have Levin as our negotiator; he can establish us as a publisher with which to negotiate on all physics journals. Levin hopes to return with an agreement for us to sign. Baensch further noted that since the opening of the Soviet book publishing industry in 1977, the individual branches of their overall publishing agency have broadened their activities. With these changes and a freer atmosphere, now is the time to confirm that AIP is the American agency with which to work.

   As plans for this journal had not been discussed previously with the Executive Committee, Ford reviewed that it is a new Soviet publication, having begun in January 1988. Quinn (OSA) called it to the attention of AIP. It has been discussed with OSA in terms of a 50-50 arrangement: one-half the losses or profits. AIP suggested adding this to our journal list; however, the Soviets wanted to handle it separately. Ford said the contract states that we would bring out all issues of Volume 1 as a single volume.

   Boyce made the following motion, which was seconded by Wilson, and carried with one abstention.

   MOVED that the Executive Committee approve the terms of the arrangements between OSA-AIP and the Mezhdunarodnaya Kniga (MK) for publication of the English-language version of the new Soviet journal Atmospheric Optics as outlined in the 15 August 1988 correspondence from Ford to Belestotsky of MK.

4. Computers in Physics - Progress and Planning
   Baensch referred to his 28 August 1988 memo to Ford in which he discusses his plan for a small task group to analyze the developments with CIP since its inception. The journal has had a good beginning: 10,000 subscriptions, 14 pages of advertising, renewal rate of 52%. We now need to get a better focus on content, and to identify our market. A reader survey is being conducted regarding cancellations and another one for advertisers; results of these surveys will be in by December.

   Grant said he was in meetings that resulted in the recommendation to start this journal. The committee which made the recommendations, whose members were all from academe, addressed a number of issues; these appear to have been lost somewhere. Now he does not hear Baensch saying that the Editor and Editorial Board are involved in planning the proposed surveys; this sends mixed signals.

   Baensch clarified that he is asking Wolfe (Managing Editor) to bring in Borchers and members of the original advisory committee.

   Grant thought this was the wrong emphasis. He thinks it should start with Borchers and the editorial committee, and involve Wolfe as necessary. Wilson seconded this; he thought it an oversight and one which confuses roles if one does not start with the Editor.

   Baensch said this is not intended. He welcomes any input, and appreciates these recommendations.

   Lazarus said he sees two journals currently at risk: CIP and Chinese Physics. At what point is a decision made to give up?

   Baensch said he has no background as yet on Chinese Physics. He has targeted the end of January 1988 for a decision on CIP.

   Parisi said that Chinese Physics is almost at breakeven now. In 1987 it made $3,000. It is budgeted for a $7,000 net in 1988.

5. Discussion of Prices/Costs/Quality/Page Charges
   Ford called attention to his 4 May 1988 memo to the Committee on Publishing Policy which notes fundamental issues in the journal publishing program (page charges, page budgets, quality, member prices), and to an excerpt from his June “Letter from the Executive Director” on the same topics.

   Havens said that the APS is not in as much of a deficit position as had been thought earlier, so the pressure is less to raise page charges. One contingent in the APS feels that they should increase them to help libraries. They are discussing a small increase, but there also is opposition to this move.

   Lazarus said the percentage of honoring rate was the same when the charge was $90 as when it is $45 or less. The only difference is that the complaints were louder when the charges were higher. Reduction of page charges did not increase circulation.

   Ford said that he feels that it is time to ask about the cost of quality of the journals that we are producing. A brief discussion suggested that management should be encouraged to develop figures which address this issue.

6. Report on 2 August 1988 Meeting of Subcommittee on Books
   Baensch referred to a 24 August 1988 memo from Lerner which summarizes this meeting. The subcommittee was asked to consider what the growth of the Books Division should be; they reviewed production and distribution costs, pricing policy, and the books which are now in progress.

   Baensch noted again that a more extensive marketing program is needed. The translation program is on track. We need a 3-5 year forecast for the four series that are now published, in order to plan various aspects of financing and to make this program a generator of capital rather than a user of capital. He has met with the book editor of IOP and hopes to consider co-publishing ventures with them. The current agreement with IOP, which will continue through 1989, is slowly beginning to show results.

7. Member Subscriptions to Journals
   Parisi referred to a series of memos on this topic: (1) 26 August 1988 memo from Parisi to Baensch giving data on members who subscribe to an excessive number of journals, with responses received from five Societies; (2) 2 August 1988 letter to Havens from Ford on subject; (3) 25 August 1988 memo from Forman to Parisi on APS review of the issue. He distributed a draft letter to individuals from Ford on the subject, a 2 September 1988 memo from Havens to Executive Committee with memo from Forman which included her suggestions for handling this problem, and a copy of Havens' letter to an APS member in France.

   Parisi noted that this concern has been discussed for several years. He now has a list of 600 people subscribing to more than six journals; these names were sent for review to the appropriate executive officers of six Societies most involved. APS has responded, but Quinn of OSA elected not to review the list sent to OSA until he sees the proposed letter.

   Frauenfelder said he thought that Ford's letter was appropriate. Every Society has the right of previous review of the list before it would be sent.

   Further discussion resulted in a suggestion that there be a delay in sending the letter until additional responses, including comments on the draft letter (to be sent by AIP) and review by the APS Publications Committee, had been received.

8. Action by Gordon and Breach re Barschall's Article in Physics Today
   Baensch reported that Gordon and Breach Science Publishers has registered a complaint regarding comparisons of journal costs as depicted in the articles by Barschall, published in Physics Today. The complaint is being reviewed by AIP and its legal counsel to determine an appropriate response.

   Gilbert said Gordon and Breach claim that they are losing subscription renewals as a result of the information in the article, and that there are number of errors in the survey. Their letter suggests that we take it to our attorney and arrange to publish a retraction. Barschall will respond to their letter. They also claim that a letter dated 6 January 1987 was sent to APS and Barschall after his first article appeared (December 1986 issue of PT), in which they took exception to his data. There is no record of receipt of such a letter by AIP, APS or Barschall.

7. Information Technology Matters
Ingoldsby referred, for the topics discussed below, to his 24 August 1988 memo to Ford.

1. Report on Development of the Fulfillment and Membership Information System (FAMIS)
   Ingoldsby reported that the database design document was completed this summer, and the detail design is nearing completion. The project now has moved into the program coding phase. Coding of the table maintenance programs is one-half finished. Staff are about to begin testing of the completed modules. Problems with the Wang implementation of the Oracle software have affected the schedule. (He reviewed a graph showing the status of the FAMIS sub-systems.)

   In addition to the problems with Oracle on the Wang and its integration with the work stations, a more serious problem has been the old Univac equipment. The conversion of existing Univac programs to run on the Wang, which he had proposed in the spring, was found to be economically unfeasible and was abandoned in June. He also noted that $117,500 of 1988 G&A budget allocations, which were all transferred to this project, was not properly accounted for in the April budget revision. He believes we will be able to cover this error by underexpending the budget for the development system.

   He reviewed the budget and project status; the operating date is projected for 1 December. As the subsystems become operational, they will be transferred and implemented. He anticipates being able to switch off the Univac by 15 December. He thinks there are adequate resources and time available to complete the job on budget and schedule.

   A meeting of the Committee on Society Services will be held in October. He plans to solicit input at the meeting from Member Society representatives regarding enhanced member services to be implemented in phase 2 of the FAMIS project.

2. Report on PI-NET
   Ingoldsby reviewed the status of this project. There are 400 users of the PI-NET system. PI-MAIL use is sufficient to allow us to recover time and connect charges. He expects the conversion to the new Gould system to be completed no later than 11 January 1989.

   Application for status as a Bitnet node (through Hofstra University) is underway. This will take several weeks to complete.

   The Gould system has been expanded, to provide additional disk space, within the existing capital budget. It has been impossible to hire a UNIX system programmer from outside, so Peter Sutherland has been recruited and trained from within. Robert Feinman has the day to day responsibility for this project.

   The long term financial implications for this project are not yet clear. There will be a three-year budget projection ready for the October 1988 Executive Committee meeting.

   Lazarus asked for an estimate of on-going expenses and of what would be a tolerable charge. Ingoldsby said he estimates $15-20 per connect hour, generating a revenue of the 40 000 to $60,000 which is needed to offset line changes and administrative salaries. He thinks this is something we have to move toward as an alternative to the printed product. We have to continue to enhance the value of it and have something of worth which is deemed useful by physicists.

3. Report on Management Changes
   Ingoldsby discussed changes in the organization within the Information Technology Branch. The Information Services Division is responsible for maintenance of production systems. The Information Systems Division handles application development, publishing services, and system planning. The Subscription Fulfillment Division now consists of cashiering, data entry, member service, nonmember services, control, and project development.

8. Report of the Development Committee
Ford referred to background material, including: Minutes of 9 July 1988 Meeting of Development Committee; a memo “Summary of Projects with Outside Funding”; Memos from the relevant AIP offices on outside sources of funding; 18 August 1988 memo from Ford to Development Committee itemizing projects which were “Candidates for Outside Funding”; 31 August 1988 memo from Ford to the Executive Committee giving a summary of recommendations from the 30 August meeting of the Development Committee. The complete minutes of the 30 August meeting were distributed at the beginning of the current meeting.

Ford reminded the Executive Committee that the ad hoc Development Committee was appointed on authority of the Governing Board. The recommendations of the Committee, as given in the memo and the minutes, will go to the Governing Board.

Referring to the Summary of Recommendations from the Committee report, Ford noted that the committee had fairly closely tracked the Staley report recommendations, but were more specific in some instances: they recommend that...
1. the Governing Board approve the addition of a senior staff position in development, with support staff of up to two persons;
2. the Executive Director be asked to report on the activities of this office and develop a list of projects for outside funding within one year of its creation; and
3. a comprehensive review of development office activities and relations with the Member Societies be required within five years of hiring of development staff, and that continuation of the development efforts at that time be contingent on positive action by the Governing Board.

Frauenfelder said this is a recommendation to the Governing Board; the Executive Committee can add remarks if it wishes.

Lazarus expressed concern that the recommendations seem to take responsibility for development efforts away from the Executive Committee and the Governing Board. This is a sensitive area, and assigning it to a totally independent body is improper. It is important to integrate the activities of this office with the needs of the Societies.

After further discussion of this point, Grant made the following motion, which was seconded by Boyce, and was CARRIED with one NO vote:

MOVED that the Executive Committee recommend to the Governing Board that the wording in first section Recommendation 3 be changed to “reviewing those AIP activities" rather than "approving those AIP activities.”

Wilson said we have to recognize that this is a very controversial issue. He supports additional development efforts; however concerns have been expressed to him by AAPT officers. He said that Franz (current AAPT Vice President) sees a possible conflict with the Member Societies and thinks there is a possibility that this office would not be properly coordinated with the Societies. There is a potential for the Societies running headon with AIP fund raising programs; one stated intent (to support Physics Programs activities) is at the heart of AAPT activities. She would like to see structures to ensure that these issues and conflicts are considered.

Frauenfelder said this is an issue in which the smaller Societies see a chance to gain, whereas the larger Societies see problems. The Executive Committee has to find out what the problems are and see how they can be solved.

Ford said that currently the AIP fund raising efforts are directed toward AIP projects only. Fund raising efforts would help the individual Societies. There is no absolute assurance of what will happen, but he thinks it would be short-sighted not to try to work for and help the Societies. He referred to the Development Committee notes “Possible Early Strategies.” The office would try early to deliver successes to the individual Societies.

(This topic was discussed further on 10 September; discussion is reported here for continuity.)

Frauenfelder reminded the Executive Committee that the report will go to the Governing Board. Should the Executive Committee make a recommendation or have it go forward without a recommendation?

Smith said that, along with the ad hoc Committee report, an additional document should go to the Board; the Governing Board should receive a communication from the Executive Director with an explanation for his reasons for the request. He said what is needed is an explanation as to how the report will be implemented.

Ford said he would like to make such a report. Much has been said on the subject over the last year, and he will try to collect these together in such a report.

After discussion concerning the possibility of a recommendation from the Executive Committee, Smith made the following motion, which was seconded by Lazarus and subsequently TABLED with one abstention:

MOVED that the Executive Committee has received the report of the Development Committee and endorses, in general, the recommendations of the Committee.

Frauenfelder said he was initially against the idea. One thing that changed his mind was the statement of Staley: he is knowledgeable in the field of fund raising. It is easier to move forward if we have a proposal from Ford regarding use of the funds. His suggests that Ford forward his memo for discussion at the next meeting of the Executive Committee, which can decide about making a reasoned suggestion to the Governing Board.

Smith said he voted against Ford's original proposal as he thought it was moving too fast. But there has been a mandate for Ford to expand the physics programs. This cannot be done if we continue to bleed funds from publishing. There is a need for funds and the things we want to do with them. This is an act of faith. One critical point is who is brought in to do this. He would like to see the Executive Committee (which got the proposal in the first place) go on record as approving this as an appropriate effort.

Frauenfelder said Smith is contradicting himself. He earlier had said that any fund raising has to have a designated goal to be effective. He wants to have additional information, such as a list of projects that will require development support, for review at the next meeting.

Grant remarked that we have to keep in mind that at the March 1988 Governing Board meeting a motion was approved to create an ad hoc Development Committee, whose charge was to design an AIP development program and to recommend actions required to implement the program. Actions should be taken in light of this expressed Governing Board direction.

9. Guidelines for Development of 1989 Budget
Ford referred to his 26 August 1988 memo to the Executive Committee in asking for discussion of several matters related to this topic.

1) Budgeting investment income.
Ford reminded the committee that the 1988 budget was developed with a policy which separately budgeted earnings from the cash management account and the investment portfolio. There is some arbitrariness with this plan, and some of the investments made through the cash management account are held longer than one year. He recommends that for the 1989 budget we return to our earlier policy whereby the investment income from the cash management account and the AIP investment portfolio are treated as a single income item. It then becomes a policy decision for the Executive Committee to determine what portion should be used for operations and what for long term investment. In addition, he also suggests that the target for budgeted net income be determined by policy considerations, not tied to investment income. An implication of this procedure is that there should be no bar to using a portion of investment income to help fund physics programs.

Havens said the APS financial advisers recommended budgeting, for regular operations, a stated fraction of a reasonably projected return on all investments. He said he could provide the Executive Committee recommendations from their advisers if that was desirable.

The consensus was that the distinction should be dropped in developing future budgets.

2) Net income.
Ford said in determining the target for budgeting Net Income both fiscal prudence and goals for adding to reserves are important considerations. He considers a reasonable total net revenue goal to be $1 million. There was no disagreement to using this figure as a target.

3) How much can the back of the turtle support?
Ford noted that support for AIP programs comes mainly from publishing. He thinks there will be enough revenue to support existing programs, but we must go slowly when it comes to adding any additional programs. He said his sense is that about three years ago there was a large surplus, and that at that time we felt we could support new projects such as the Washington office, a Congressional Fellow, CIP, Visiting Scientist Program, and PI-NET. Some programs have the potential to break even some day; others, by their nature, will continue to be a net expense. In the meantime we have not added new sources of revenue, so in seeking additional revenues we should be careful not to unduly burden our publishing program.

Baensch commented that he thinks there should be a section on external factors in the Long-Range Plan. There are major environmental and economic factors which will give difficulties; we should be prudent in budgeting.

1. Unrelated Business Income Tax
   Gilbert distributed a 2 September 1988 memo which he had directed to the Management Committee on “Unrelated Business Income Tax (UBIT) - A Contingent Liability.” The Congressional Oversight Subcommittee of the House Tax-Writing Committee is looking at unrelated business income of exempt organizations. Under the current law, tax is paid only when a publication operates at a profit. We do not pay UBIT on PT, as it operates at a loss. Our Federal tax in 1986 was about $5 000. The Subcommittee is considering a change in taxation rules which if approved in its present form would result in AIP incurring a 1988 tax of about $551,000 for PT. The current word from Washington is that changes in the UBIT will occur in 1989, at a rate which is a compromise between what we pay now and what we would pay under the current form of the proposed rule.

10. Long-Range Planning (I)
[Note: There were two sessions devoted to discussions of the draft long-range planning document. Both sessions are reported sequentially here, and in summary form only as a result of the evolutionary nature of this document. Persons reading these minutes are referred also to the AIP Long-Range Plan adopted by the Governing Board at its October 1988 meeting.]

Weart chaired these discussions of the draft long range plan. Any revisions made by the Executive Committee will be incorporated in the version sent to the Governing Board in October.

Weart led a discussion of those sections of the report which consist of the staff’s analysis of (1) AIP’s current situation, (2) its “Strengths, Weaknesses, Opportunities and Threats”, and (3) of projections and trends for the future. Uncertainties about trends for the future, and the resultant impact on AIP and its Member Societies operations and revenues, include:

(1) publishing (erosion of subscriptions; impact of new electronic, and other, means for the storage, retrieval and dissemination of information; containing costs of producing and distributing publications);

(2) physics programs (decline in quantity and quality of science programs in the U.S.; promoting and supporting efforts at improving science education at the primary, secondary, and undergraduate levels, as well as for the general public; developing and coordinating cooperative efforts between AIP and its Member Societies);

(3) finance and administration (maintaining cost effective services and programs on behalf of its Member Societies and the physics community; providing and maintaining the space necessary to carry out authorized activities).

Weart then stated that this Long-Range Plan is not a study of the future. One of the goals is to study and to develop mechanisms needed in order to make projections for the future. Trends in publishing will affect AIP staff and space, as will trends and needs in the area of physics programs.

Havens noted that many things listed here are also done by Societies. Therefore, the distinction will have to come about that AIP does certain things and the Societies do others; they have to be done in a cooperative spirit. 70% of what is in the report are things that can be done either by AIP or the Societies, and the mix of activities done by AIP for societies will vary from one to another.

Weart said he hopes this will stimulate long-range planning in all Societies.

(The meeting recessed for dinner at 5:00 p.m. and reconvened at 7:00 p.m.)

(The discussion of the Long-Range Plan was resumed Friday, 11 September, at 9.15 a.m. It is reported here for continuity.)

Finally, Weart asked the committee to address the goals and objectives and noted that there had been no attempt to make a priority ordering. The general discussion which followed served to highlight committee perceptions of AIP trends and needs, and resulted in the addition, where possible, of objectives, or even appropriate phrases, which emphasize the need for cooperation and communication among Societies and with AIP, and for strengthening the customer orientation of service divisions within AIP.

Weart said the next stage will be for him to put in the suggested revisions.

Frauenfelder thought the plan, with revisions, should go to the Executive Committee for review before going to the Governing Board. Anyone who has a serious problem about anything should call as soon as possible. Weart said it would be mailed to the Executive Committee within a week, and asked for comments as soon as possible thereafter.

Ford emphasized that, since it was written by staff from a staff perspective, the tone comes across as staff-prepared. It will, however, be a Governing Board plan.

(The discussion of long range planning concluded at 10:55 a.m. on Friday.)

11. Physics Programs Matters

1. Report of the Director of Physics Programs
   Rigden referred to his 25 August 1988 memo to the Executive Committee which presents an overview of Divisional ongoing activities and new and special initiatives. He especially noted:

   1) Project SEEP (which involves 6th graders).
   2) The appointment of Don Kirwan as Manager of the Education Division, which is relocating in Washington DC.
   3) Recruitment efforts to replace David Kalson (Manager of Public Information) resigned earlier this year. Rigden stated that is his belief that there are lots of ways we can serve the physics community and the Member Societies through Public Information Division.
   4) The addition to his staff of his assistant, Beth Rose, who is working on various projects.
   5) He is exploring the idea of a quarterly pedagogical journal for third world countries.
   6) Peter G. Brown became Managing Editor of PT in January. Rigden hopes this staff addition will help in improving the timeliness of the publication.
   7) The Introductory University Physics Project (IUPP) Carleton Conference was held in August. It was attended by 65 physicists and was very successful.
   8) The idea of forming a physics education database, which would enable physicists to access pedagogical literature is being explored in conjunction with AAPT.

2. Introduction of Donald F. Kirwan, Manager of Education Division
   Rigden introduced Kirwan, who was present for this portion of the meeting. Kirwan said he is learning about things that fall in his area. The Division has dealt primarily in the past with SPS and Sigma Pi Sigma. He sees three areas of endeavor:
   1) Student programs, such as SPS and Sigma Pi Sigma.
   2) Interagency and intersociety activities. He plans to be in touch with the education officer or other appropriate person in every Member Society. He wants to lend AIP support to their activities and share information.
   3) Special projects. These could develop from activities explored by the Senior Education Fellow.

3. Report on New Projects. Outside Funding
   Ford reviewed the summary report of AIP projects which involved outside funding. The report had been prepared in response to a request from a member of the Executive Committee.

   1. Hydrogen Bomb Film Project.
      Weart, who is on the board of advisers for this project, commented that independent agents sometimes ask AIP to serve as a fiscal agent for projects, and to lend our prestige. Several very good historians are involved with the film makers on this project.

      Gilbert clarified that there are a number of organizations contributing to this project. Pamela Hogan is the contact person. He told her and Weart that AIP cannot just write checks. We require authorization and overhead. He also told her we don't want fiscal responsibility over grants. He can give her reimbursement if she gives the grant number and backup. The project has hired a bookkeeper and they send backup with any request for reimbursement.

      Ford said that under no circumstances does AIP serve as a conduit or agency for grants without being involved in a way that our judgment and voice is involved.

   2. Operation Physics.
      Rigden said that Kirwan brought this project with him. Kirwan explained that the project deals with teaching physics topics in elementary schools (grades 4-8). It is an ongoing program involving the preparation of teachers. The current project ends 31 January 1989, and he has resubmitted it under AIP to continue the operation for a second year. He requested $800,000 for 18 months. At present 29 states are involved.

   3. IUPP.
      Rigden said he has just received NSF funding for the second year of IUPP. The first year dealt with content; this will continue. The next phase will focus on five issues with a working group for each: Jabs, evaluation, role of the computer, implications of educational research activities of the last 15 years, and constituencies served by the introductory course.

   4. Project SEER.
      This project has not as yet received formal funding, but he is expecting approval of a NSF grant request soon. He also recently has had an expression of interest from Monsanto in St. Louis. It is designed to upgrade elementary science education levels, while seeking ways to make science more attractive to women and minorities.

4. Report on Physics Olympiad
   Wilson called attention to the AIP press release concerning the 1988 Physics Olympiad, to a copy of an article scheduled for AAPT Announcer on 1988 Olympiad, and to the estimated 1988 budget and financial report for this project. Eight of the ten Member Societies contributed to funding this year.

   He reported that it had been a successful Olympiad, with three U. S. participants winning silver medals, and one an honorable mention. He noted that our educational system is far behind that of most other countries. The U. S. will never have the kind of preparation available in other countries. Our motivation is to provide the competitive experience for the thousands of students who participate on the national level.

5. Report on Physics Academic Software Program
   Ford referred to his 26 August 1988 memo to the Executive Committee. A grant from IBM for $63,000 has covered expenses up to August 1988. A renewal has been requested, and orally assured. The AIP Management Committee has authorized expenditures of up to $10,000 through the balance of 1988 to cover expenses until grant details are worked out. AIP has been told that retroactive payments will be authorized.

6. Report on Senior Education Fellow
   Rigden called attention to the final report, dated 27 June 1988, submitted by Sallie Watkins and covering her one-year appointment in this position.

   Jorge Barajas has been selected to serve as Senior Education Fellow. Barajas is a native of Mexico, where he has been active in setting up a number of educational projects. He was most recently involved in the Inter American Conference on Physics Education jointly sponsored by AAPT.

   Boyce said he sees a number of interesting things going on. What sort of dissemination of information regarding these activities is being considered? Watkins did things with two Societies, but other Societies were left out. There is not enough communication.

   Rigden said the Long-Range Plan notes the need for an intra-Society newsletter. Smith and others supported the idea of such a publication.

7. Report on Status of Recruitment of Manager of Public Information Division
   Rigden said recruitment is continuing, but as yet A.IP has not been able to match the salary requirements of desirable candidates.

8. Proposed Branch of the Public Information Division in Washington
   Rigden referred to his 25 August 1988 memo to the Executive Committee in which he proposes the idea of establishing a satellite public information activity. in Washington. The individual involved could work closely with the Washington-based Societies, and should attend every major meeting of every Member Society for the purpose of gathering and disseminating information about those meetings.

   Boyce and Wilson both expressed enthusiasm for the idea.

9. Report on Gemant Award Committee
   Grant reported that Mildred Dresselhaus has agreed to serve on this committee. Lazarus, as senior member of the three-person committee, will serve as chair.

10. Proposed Advisory Committees - Committee on Physics Programs Policy and Committee on Physics Education
    Rigden referred to the 3 August 1988 memo to the Executive Committee and Governing Board proposing these changes and additions (attached as Appendix).

    Rigden said that, while there remains a need for an overall policy committee to advise and make recommendations on programs and coordination of programs within the Branch, there is an unfulfilled need for an advisory committee to the expanded Education Division. The changes proposed in his memo would restructure the current Branch policy committee with representation and a charge more appropriate to its mission, and add the advisory committee.

    After discussion clarifying the proposed changes, Grant made the following motion, which was seconded by Lazarus, and was unanimously CARRIED.

    MOVED that the Executive Committee recommend that the Governing Board approve the restructuring of the Committee on Physics Programs Policy and establish a Committee on Physics Education, as outlined in the 3 August 1988 memo from Rigden to the Executive Committee.

12. Executive Session
AIP staff and all officers were excused at 8:45 p.m. The Executive Committee met in executive session from 8:45-10: 15 p.m. It reconvened in executive session, with Ford present, from 9:00-9:15 a.m. the following morning (11 September).

AIP staff joined the meeting at 9:15 a.m.

13. Lone-Range Planning (II)
Discussion of the long-range plan was resumed. It is reported following the initial discussion under Agenda Item 10.

14. Space Issues

1. Long Island: Proposed Expansion of Woodbury Site
   Ford referred to the report by Gilbert of the 20 July 1988 meeting with realtors concerning Woodbury building. When we have received an architectural rendering of the proposed addition the plan is to meet with the local Taxpayers Association to tell them about our wish to expand. We would convey that if this is not possible we would have to vacate the building and go elsewhere.

   Ford said the view of our attorney is that whether we will prevail or not depends on community support. If we ask for a zoning board hearing on a proposed addition, it probably would not be held before November 1989.

   Smith asked how serious it would be if there were a delay until November 1989 for the hearing.

   Ford sees it as serious. The delay will escalate our expenses. He thinks we should make a decision about proceeding after our meeting with the taxpayers group.
   Frauenfelder thought we should continue looking for additional sites. We can only make a reasonable decision by weighing the alternatives.

2. New York: Need for Expansion
   Ford said that, though there is no immediate demand for additional AIP or Member Society space, we are fully occupied at both 140 and 335 E. 45th Street. However, it is clear that the demand for more space will develop within 1989. He thinks prudence dictates that we look at additional rental space. Weinbaum has been asked to look into adding an additional 030 sq ft of space to our existing lease at 140 E. 45th.

   Wilson asked if we are considering what the comparative cost is between New York and Washington. If it is cheaper in Washington, what about moving some functions there? Ford answered that for straight rental the difference favors Washington by about a factor of two. Management will consider relocating some offices to Long Island and Washington as demand for New York space develops.

   Walt said we are talking about 3,000 square feet now, but according to the long-range plan we expect to need an additional 40,000 square feet by 1993.

   Ford agreed that we are discussing only short term solutions; solutions for the longer term must be found.

   Havens said APS is crowded in New York. They have an additional problem in Ridge, and are investigating alternatives for that location.

3. Proposed Rental of Additional Space in AGU Building
   Ford referred to his 26 August 1988 memo to the Executive Committee giving background on the proposed rental of additional space in the AGU building.

   Ford said that staff in the Washington office will number 12 by the end of the year. An additional PT person is being added, and additional staff are needed for the Education Division. It appears that the AGU can provide an additional 1,200 feet, which would accommodate 3-4 people plus storage.

   Following discussion of the need for this space, Ford then made the following motion, which was seconded by Smith, and was CARRIED, with one NO vote.

   MOVED that AIP Management be authorized to lease up to 1,200 square feet at a cost of up to $22 per sq. ft. in the AGU Building for the shortest available lease term, not to exceed five years.

   Gilbert said Management would try to get an expiration date to coincide with that for the space we are currently renting from AGU.

4. Discussion of Longer Term Expansion Requirements
   Ford said this topic is only a reminder of a continuing problem.

   Wilson said additional expansion in New York should have lower priority than relocating some activities to Woodbury, Washington, or elsewhere. He clarified that he is not suggesting that we abandon 335, but move parts elsewhere.

   (The meeting recessed at 12:00 noon for lunch, followed by a free afternoon. At 6:00 p.m. the attendees reconvened for a reception, followed by a clambake at the Study Center. The meeting resumed on Saturday, 10 September, at 9:00 a.m.)

15. Items from Secretary

1. Policy on Outside Grants
   Grant referred to the 11 August 1988 memo from Ford to the Executive Committee which contains a draft of a policy statement on outside grants which was requested by the Executive Committee at its June meeting. He said that if these guidelines are approved, the intent is that, before submission for funding, proposals will be discussed with the appropriate advisory committee or a policy committee.

   The committee discussed the draft statement, with concerns falling broadly into two areas: (1) the overlapping interests of AIP and the Societies, and (2) the size of any proposed grant.

   To meet the concerns expressed in (1) it was agreed that review of major proposals by appropriate AIP advisory and/ or policy committees along with efforts to notify and to work with relevant Member Society staff and/or officers would go a long way toward alleviating problems. A compromise was reached in answer to (2) which defined proposals whose bottom line was in excess of $200,000 as being major grants requiring careful review and adherence to the guidelines.

   Ford agreed that the intent is — almost always — to give the appropriate committee the opportunity to review plans and proposed projects within their area. After discussion, he agreed to substitute the statement "in unusual circumstances an approval may be given by the Executive Director and Chair of the Governing Board" for the qualifier “normally” when referring to review and approval procedures.

   Grant made the following motion, which Havens seconded, and was unanimously CARRIED.

   MOVED that the statement "Guidelines for Submission of Grant Proposals", as modified at the Executive Committee meeting, be approved. (attached as Appendix B.)

2. Tate Award
   Grant referred to the 26 August 1988 memo from Wagner which gives background on the Tate Award. The original title was John T. Tate International Medal for Distinguished Service to the Profession of Physics.

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

   MOVED that a Tate Award Committee be established to recommend to the Chair of the Governing Board a suitable candidate to receive this award.

   Havens noted that this Award was established in the early 1960s. He asked if the $3,000 stipend was deemed sufficient for an award recognizing international contributions to physics?

   Gilbert said the principal in the restricted Tate Award fund is now $40,500.

   Following discussion, Havens made the following motion, which was seconded by Walt, and unanimously CARRIED.

   MOVED that the stipend of the Tate Award be increased to $5,000.

   Frauenfelder asked for and received suggestions for membership on the Tate Award Committee.

16. Rental Rates for Resident Societies
Ford referred to a number of documents concerning this issue, including his 12 August 1988 memo to the Executive Committee, a memo from Gilbert to officers of Resident Societies regarding increase in rates, letters from ASA, APS, AAPM, AVS, AGU, and letters dated 6/13 and 6/14 from Lehrfeld giving his legal opinion.

Ford said the survey that Gilbert made in February found an average $38 rate among the 12 sites he studied. Gilbert said the 1988 budget included the following rental rates (per square foot): New York: $21.83 per square foot; Woodbury: $24.32; 140 E. 45th Street: $37.85.

Frauenfelder reviewed the background on this subject, noting that the vote taken at the April Executive Committee meeting had been unanimous, and that the impetus had come from members of the committee and not from management. He noted that the resident Societies had responded with thoughtfully written letters. The Executive Committee could take one of several actions:

1) reaffirm the action; 2) send it to the Governing Board for further consideration; 3) modify the rate difference; 4) return to the previous rate.

It is clear that not changing this action would be a mistake.

Ford said he had two comments. 1) He is concerned over the psychological impact. If it influences the attitude toward AIP, is questionable if it is worth it to have produced that result. 2) The legalistic aspects. Beyer in his letter referred to the Memorandum of Agreement. It itemizes the paying of services at cost. The view of legal counsel was that rental is not a service. However, the Memorandum of Agreement does specify this as a service.

Gilbert said this was the first time we had deviated from cost in charging the Societies for any service. The Memorandum of Agreement does not spell out the word “cost.” Historically it has been interpreted as actual cost.

Grant said on the basis of Ford's comments, he thinks it should be re-examined. He reminded the Committee that this concern went back farther than the recent action. Duke had raised the question when he was on the Governing Board of whether charges reflect true costs. The Executive Committee is trying to look hard at AIP's needs. He thinks one of the things raised is now that we own the building, are we truly reflecting what we have there in the way we charge ourselves and the Societies?

Woodall said he thinks the Executive Committee should rescind the past vote, then develop and bring several plans reflecting strategy and needs to the Governing Board where there is a better representation of the users.

Frauenfelder said this could not be done at the next Governing Board meeting as it could not be ready by then. We had better take a good look at the question first.

Gilbert said it would be on the agenda of the meeting of the Committee of Society Treasurers.

Walt said he had voted in favor of the action. He thought it was a step in the right direction. We would then know what things were really costing. It is more to make the books easier to look at and to judge the actual costs. He would be more receptive if a stepwise increase were taken.

Smith said he had been amazed to see this action taken. On reading the letters, he thinks rescind and review is the thing to do. We should regard rental to the Member Societies as a service. He also thinks AIP should pay the same rate. The next question is what is the real cost? If we rescind this action, we need another action to establish a principle.

Lazarus said it was much more complex than he had thought. The history of AIP has to be part of the considerations of Member Society investments. APS has done the lion's share of business with AIP and deserves to benefit from this.

Strasberg said he found himself in an uncomfortable position over this. The ASA has always prided itself on good relations with AIP. He thinks it would be fair to add to the rent a fair assessment for a building fund. What is unfair is to say this would be the cost on the open market.

Lazarus then made the following motion, which was discussed, amended as reported below, and CARRIED with one NO vote.

MOVED to rescind the action taken at the April 1988 meeting of the Executive Committee which established the policy that resident Societies would pay current market rates for rental of space from AIP effective 1 January 1989.

Lazarus then made the following motion, which was seconded by Purdy, amended by Smith following discussion, and unanimously CARRIED.

MOVED that AIP Management be requested to develop a plan through which rental rates charged to resident societies and to AIP reflect the true costs of operating the facility. As a part of the planning process, the Committee of Society Treasurers is asked to discuss and make recommendations on this matter in time for further review by the Executive Committee at its 16-17 February 1989 meeting.

Frauenfelder said the Member Societies should be informed as soon as possible, with an explanation.

17. Governing Board and Related Matters

1. Report on Corporate Associates
   Ford referred to the 22 August 1988 memo from Merrill reviewing the arrangements and preliminary program outline for the Corporate Associates meeting. He distributed the brochure for the Corporate Associates Meeting, just completed, and commented that he thinks it is an excellent program.

   Havens said he had strong reaction from APS officers over the selection of Congressman Ritter as a speaker in the section on policy matters. Ford said it is important to know what he is thinking even if one disagrees with him.

2. Agenda Items for the Governing Board
   Grant reviewed what he thought would be three main issues:

   1) Long-Range Plan. It cannot be rewritten during the Governing Board meeting, and to go through it in detail is complex. He suggests budgeting one hour, with Weart presenting an overview, and asking approval to proceed.

   2) Size and constitution of Executive Committee. This is being discussed in letters with the Committee on Constitution and Bylaws. Implementation involves a constitutional amendment and as well as a rule change.

   3) Development office recommendations.

   Ford said he will present a more complete report to the Board in October on his first 18 months as Executive Director. It would also be appropriate for Baensch to make a report on publishing.

   Ford said Jamerson had expressed interest in attending the Governing Board meeting to express his thoughts on what AIP should be doing in the public forum. Ford wondered about the propriety of this.

   Frauenfelder said this is an important aspect; it would not be a bad idea for him to give his impressions, if it works within the time.

3. Planning for Assembly of Society Officers
   Ford said there seems to be agreement that this should be reinstituted in 1989.

   Strasberg said he planned to convene a meeting of the Committee on Society Services and would elicit suggestions from that group for the Assembly. However, he does not think that this committee is the one to organize the Assembly.

18. Future Meeting Dates
Grant reviewed the dates of forthcoming meetings. (The following list reflects changes made since the meeting.) (** change of date)

23 Oct {12N - 5 p.m. Sun) Executive Committee, Westchester Marriott, Tarrytown, NY
23-24 Oct (6 p.m. Sun - 4 p.m. Mon) Governing Board, Westchester Marriott
25-26 Oct Corporate Associates, IBM Watson Labs, Yorktown Heights, NY
1-2 Dec (5 p.m. Thurs - 4 p.m. Fri) Executive Committee, New York NY
** 16-17 Feb (5 p.m. Thurs - 4 p.m. Fri) Executive Committee, New York, NY
30-31 Mar (1 p.m. Thurs - 12N Fri) Assembly of Society Officers
31 Mar (a.m. Fri) Executive Committee (if necessary)
31 Mar (12:45 - 1:15 p.m.) AIP Corporation Meeting
31 Mar - 1 Apr (1:30 p.m. Fri - 1 p.m. Sat) Governing Board
5-6 Jun (5 p.m. Mon - 4 p.m. Tues) Executive Committee
** 7-9 Sep (9 a.m. Thurs - 12 N Sat) Executive Committee, Woods Hole, MA
** 1 Oct (12N - 5 p.m. Sun) Executive Committee, Detroit, MI
** 1-2 2 Oct (6 p.m. Sun - 5 p.m. Mon) Governing Board, Detroit, MI
** 3-4 Oct (Tues, Wed) AIP Corporate Associates, GM Labs, Warren, MI

19. Other Business
There was no other business.

20. Executive Session
The staff were excused at 11:45. The executive session concluded at 12:00 noon. This is reported in the official minutes only.

21. Adjournment
The meeting was adjourned at 12:00 noon, followed by lunch.