Executive Committee of the American Institute of Physics
Minutes of Meeting
Members Present: Philip M. Morse – Chairman, Robert T. Beyer, W. W. Havens, Jr., H. William Koch, Sidney Millman, Jarus W. Quinn, Norman F. Ramsey, A. A. Strassenburg (Saturday only)
Absent: Charles B. Duke
Nonvoting Participant: F. R. Eirich (SOR) – Friday evening only
Guest: Harris Rosenberg of Wilke Davis Associates, AIP’s design consultant – Friday evening only
AIP Staff: H. William Koch, Director; Sidney Millman, Secretary; G. F. Gilbert, Treasurer; R. H. Marks, Associate Director for Publishing; Lewis Slack, Assoc. Dir. For Educational Services; D. M. Lasky, Assistant to the Director; M. M. Johnson, Assistant to the Secretary; A. Z. Kranz, Manager of Building Facilities – Friday evening only; Mitchell Koch, Manager of Publication Division II – Saturday only for Item No. 15; John Auliano, Technical Advisor to the Director’s Office – Saturday only for Item No. 16
The Friday evening session, which was held in the Stuyvesant Suite of the Roosevelt Hotel, was called to order by Chairman Morse at 8:15 p.m.
1. Minutes
Upon motion made by Beyer and seconded by Ramsey, the minutes of the 20-21 September and 19 October 1979 Executive Committee meetings were approved.
2. Completion of Renovation of New York Headquarters Building and Approval of Cost Overrun
Kranz called attention to his 29 November memo, included with the agenda, and described some of the problems encountered in the renovation of the building which resulted in a net overrun of about $41,000. The following motion, made by Beyer and seconded by Havens, was passed without dissent:
MOVED that the net overrun of $41,000 on the renovation of the headquarters building be approved.
Kranz noted further that it is now proposed to complete the renovation of the building by doing the needed renovation of the basement. We will restore the lunchroom and the mail room, and provide separate storage rooms. This cost will be $35,000. The following motion was made by Havens, seconded by Beyer, and passed without dissent:
MOVED that $35,000 be authorized for renovation of the headquarters building basement.
3. Discussion and Approval of Contract for the Construction of the Woodbury Addition
Rosenberg noted that, following up on previous decisions, as reported to the Executive Committee on 19 October, AIP had submitted new specifications to 12 bidders. After meeting with representatives of each of the bidders submitting a bid, he narrowed the choice down to three firms: Metrohouse Associates, Inc.; Smith McCord, Inc., and Blitman Construction Corporation. It is his recommendation that we negotiate with Smith McCord and Blitman. Marks noted that both the Blitman and Smith McCord bids are within our budget and still leave a $100,000 contingency.
The following resolution was adopted upon motion made by Beyer, seconded by Ramsey, and passed unanimously:
WHEREAS, the Governing Board at its meeting of 19-20 October 1979 approved a proposal for a redesign of the Woodbury building covering the construction of a 22,100 square foot addition and the required renovation and necessary upgrading of the present building with a total cost, including retirement of the existing mortgage, legal fees and other costs not to exceed $2,175,000, and
WHEREAS, the Governing Board delegated to the Executive Committee final approval of the negotiated contract with the construction company that will be engaged to meet the 12 December 1980 completion date required by our mortgage loan agreement with The Guardian Life Insurance Company of America, and
WHEREAS, the Institute has obtained bids from seven general contractors, an analysis of which has been distributed to the Executive Committee at this meeting, and
WHEREAS, the AIP Management Committee has recommended that the contract be awarded to one of the following contractors, namely, Smith McCord or Blitman, whose bids set forth fixed lump sum prices of $1,312,900 and $1,355,800, respectively, covering a base bid plus a new air support for the typing area and additional air conditioning and electrical work in the computer room in the existing building, and
WHEREAS, terms for permanent financing are set forth in a commitment letter dated 12 July 1979 addressed by The Guardian Life Insurance Company of America to the Institute and amended were previously approved by the Executive Committee, and
WHEREAS, terms for construction financing are outlined in a letter dated 19 November 1979 addressed to Mr. Gerald F. Gilbert, Treasurer of the Institute, by Bankers Trust Company, a copy of which letter has been submitted to the Executive Committee at this meeting:
NOW, THEREFORE, be it resolved that:
-
The Director of the Institute is hereby authorized and empowered to negotiate and enter into a contract with Smith McCord or Blitman substantially in accordance with the terms set forth in their respective bids above mentioned;
-
The officers of the Institute are hereby authorized and empowered to proceed with the construction loan and permanent financing substantially in accordance with the terms set forth above.
(Subsequent to the meeting, a final agreement was negotiated with Blitman for a total cost of $1,287,800.)
4. Construction Loan for the Woodbury Addition
Gilbert reported that AIP has requested a construction loan from Bankers Trust Company. He noted that two separate bonds should be issued—one to cover the construction loan and another to cover the permanent financing loan, since two different interest rates apply. The tentative rate proposed for the construction loan is 9 1/4% plus a 1% commitment fee. He was optimistic that Bankers Trust Company will issue a commitment letter after they review the final construction plans.
The meeting was recessed for the evening at 9:45 p.m. and reconvened al AIP headquarters on the following day, 14 December, at 9:05 a.m.
5. Consideration of the Proposed 1980 Budget
Copies of the proposed 1980 Budget had been mailed to all members of the Executive Committee prior to the meeting.
-
Introduction
In his introductory comments on the proposed Budget for 1980, Koch observed that the proposed budget is in line with the recent adoption by the Governing Board of the seven basic functions for long-range and operational planning. The annual budgeting procedure will, in the future, include projections of programs for an extra year. He noted that 1981 will be the year of our 50th anniversary. Some additional expenses in that connection, such as those for the Data Handbook, will be incurred in 1980, but we will defer them to 1981.
Koch projected a need for new journals. The introduction of a “Chemical Physics Letters” journal is under consideration. We have also talked with the Chinese and have plans for a possible “Chinese Physics Review” which would be a journal made up of selected original articles being published in three participating Chinese journals.
There are three kinds of services: Those AIP performs for itself – $10 million; those AIP does for the Societies – $9 million; and those the Societies contract for with others (than AIP) – about $2 million. The total AIP staff in 1980 is planned to be 425 and the budget provides for three staff additions.
-
Fiscal Information Reports and Summary of Budget
-
New York State Unemployment Insurance Coverage and New York State Disability Insurance Coverage
Gilbert called attention to attachments to the agenda, previously distributed, proposing a change in the handling of our unemployment insurance coverage from a payroll tax paid to the New York State Unemployment Insurance Fund to a self-insurance plan, at an estimated annual saving of $55,000. He also reported that we intend to obtain our disability insurance coverage through a nonprofit insurance trust organization, with an expected saving of about $8,000 per year. Both of these changes would be effective as of 1 January 1980 and the savings have been built into the 1980 Budget.
-
Fiscal Summary of Budget
Gilbert called attention to the 2-page “Summary Statement of Operations” at the beginning of the 90-page Budget document, and explained some of the items in detail.
-
-
Publishing Branch Operations
Marks reviewed briefly the publishing operations.
-
Educational Services Branch Operations
Slack touched on some of the highlights of operations in the Educational Services Branch. In the Manpower Placement operations, he noted that David Kraft is now on the staff of APS and will devote only 40% of his time to Placement activities of AIP.
-
Fiscal Branch Operations
Gilbert touched on relatively small changes in Data Processing prorations, and on some salary adjustments in 1980 as a result of our salary survey.
-
Approval of Budget
The following motion was made by Quinn, seconded by Ramsey, and passed without dissent:
MOVED that the Executive Committee approve the 1980 Budget as presented.
6. Resolution Eliminating Compulsory Retirement at 65 in TIAA-CREF Retirement Plan
Gilbert called attention to previous action taken by the Executive Committee at its meeting on 20-21 September approving elimination of compulsory retirement at age 65 in our TIAA-CREF Retirement Plan. He followed it up by asking our attorney to draft a resolution, which he presented, that would fulfill our requirements. Upon motion made by Quinn, seconded by Strassenburg, and passed without dissent, the following resolution recommended by our attorney was adopted:
RESOLVED, that effective January 1, 1979, the provision in the TIAA-CREF Retirement Plan for all Salaried Employees of the American Institute of Physics Incorporated (the "Plan") which requires retirement on the last day of the calendar month in which a participant attains age 65 is changed to read that such retirement shall be required on the last day of the calendar month in which a participant attains age 70; and
RESOLVED, that effective January l, 1980, the provision in the Plan respecting contributions by the Institute is changed to read that such contributions shall cease when a participant attains 65.
7. Election of Corporate Associates
Lasky reported that Lockheed Corporation has reapplied to become a Corporate Associate at a dues rate of $5,000. A Corporate Associate application has also been received from the Philadelphia R & D Laboratory of TRW Systems at the $500 rate. The following motion was made by Ramsey, seconded by Beyer, and passed without dissent:
MOVED that Lockheed Corporation and the Philadelphia R & D Laboratory of TRW Systems be elected Corporate Associates of the Institute.
8. Status of Amendment to the AIP Constitution Decreasing the Number of Members of the Governing Board
Millman reported that the proposed amendment to the AIP Constitution for the decrease of the size of the Governing Board has now been approved by eight Member Societies (all but AAPT), which is all that is needed for passage. The change will be effective as of 1 January 1980. Details of the change and its effect on the representation from the Member Societies are given in Appendix A.
9. Recommendation to Reinstate the Physics Club of New York as an Affiliated Society
Millman noted that, at its meeting in October, the Governing Board took action to drop the Physics Club of New York, along with another Affiliated Society. About a week later we received a letter from the current president supplying a list of officers and other information, and asking for reinstatement. Millman will ask for some additional information and propose at the next meeting of the Executive Committee that a recommendation be made to the Governing Board to reinstate the Physics Club of New York. Many, if not most, of their members are high school students and we would not want to discourage them.
10. Appointment of Representatives to Sections of the AAAS
Millman reported that AIP has received a request from AAAS to name representatives to its "physics" sections for 3-year terms. Our present representatives' terms expire on 8 January 1980. The following are proposed:
- Section B, Physics – Lewis Slack
- Section D, Astronomy – Peter B. Boyce
- Section L, History & Philosophy of Science – Spencer Weart
- Section P, Industrial Science – Frank E. Jamerson
- Section T, Information, Computing & Communication – H. W. Koch
Upon motion made by Ramsey and seconded by Havens, the recommended appointments were approved.
11. Status of IRS Audit
Gilbert reported that Francis Doman of the IRS, who had previously tried to revoke our 501(c)(3) status, is examining our 990-T forms for 1974 through 1978 with respect to unrelated business income. He is now working on our net Physics Today advertising income.
12. Status of Organizing Committee for COPA
Morse reported that he sent a letter to each of the Member Society Presidents asking them to appoint a representative to the organizing committee for the Committee on Public Affairs (COPA), and has received answers from four so far. It is hoped to have the first meeting of the organizing committee in January and to come up with a proposal for guidelines to present at the March Governing Board meeting.
13. Planning for March Meeting of Governing Board and Assembly of Society Officers
Koch stated that the AIP Management Committee is planning four meetings for 28-29 March 1980: (1) the Assembly of Society Officers starting at 9:00 a.m. on Friday, 28 March; (2) the Executive Committee on Friday afternoon; (3) the annual meeting of the AIP Corporation later that afternoon, and (4) the Governing Board on the evening of the 28th and on Saturday.
The meeting was recessed for luncheon at 12:05 p.m. and, following the viewing of some "Science TV News" video cassettes, reconvened at 1:10 p.m.
14. Resignation of Raymond Emrich from the Nominating Committee
Morse reported that Lewis Branscomb, Chairman of the AIP Nominating Committee, had informed him that Raymond Emrich, who is away on a sabbatical, has resigned from this committee. Morse suggested that W. A. Fowler be appointed to replace Emrich. There were no objections.
15. Implementation of Publication Division II
Marks introduced Mitchell Koch, the Manager of the newly formed Publication Division II dedicated to the production of APS journals and located at Woodbury, who reported on the activities of this Division.
16. Status of Computerization of Accounting
John Auliano reported on the recent activities of the computerization of accounting project.
17. Status of Planning for AIP 50th Anniversary
Lasky stated that, at its next meeting in March, the Governing Board will have before it detailed plans for the AIP 50th anniversary celebration from the committee and several operating subcommittees that were appointed for this purpose.
18. Next Meeting
It was agreed that the next meeting of the Executive Committee will be held at AIP Headquarters on Friday, 29 February, starting at 9:00 a.m.
19. Executive Session
The staff was excused at 2:20 p.m., and the Executive Committee, acting as the Administrative Review Committee, met in executive session to set the 1980 salaries for the AIP officers. A report of that session, as prepared by H. W. Koch, is attached to the official copy of the minutes.