February 22, 1990

Executive Committee of the American Institute of Physics

Minutes of Meeting

1. Convene – Roll Call
The meeting was called to order by Frauenfelder at 2:00 pm.

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)
Paul L. Carson (AAPM)
William A. Duax (ACA)
Kurt F. Wissbrun (SOR)

Staff:
Robert E. Baensch, Director of Publishing
Arthur T. Bent, Treasurer
John S. Rigden, Director of Physics Programs
Nathalie D. Wagner, Assistant to the Secretary

2. Report of the Secretary

1. Minutes of 1 October and 10-11 December 1989 Meetings
   Grant offered the draft minutes of these two meetings for approval.

   Havens said he had not had time to review these draft minutes prior to the meeting, and asked that consideration be postponed until the next meeting.

   Woodall asked that the December minutes, page 18, (Item 2.A.) show that an AVS chapter meeting had to be cancelled as the result of a problem with FAMIS.

   Frauenfelder said these draft minutes would be reviewed at the next meeting.

2. Invited Guests for Reception and Dinner
   Grant noted that six guests from neighboring institutions had accepted our invitation to join the Executive Committee for dinner.

3. Plans for 1990 Assembly of Society Officers
   Grant reported that Baensch has agreed to organize the Thursday afternoon session on the general theme of the future of publishing; the unstructured evening session will provide an opportunity for informal discussions; the first part of the Friday session will be focused on development efforts of the Member Societies, and will be chaired by Iannoli, the new development officer; the final session will address professional concerns of the Member Societies.

3. Remarks by the Chair
Frauenfelder noted the death of Edoardo Amaldi; he commented that it was fortuitous that the Tate Award, recognizing Amaldi’s many contributions to physics on the International level was presented to Amaldi in October 1989.

Frauenfelder said that, though progress is being made, two problems that have occupied us for considerable time remain: long range space needs, and the quality, cost, and timeliness of services provided by the Institute. A third concern which is emerging is conflicts over the extent of the overlap of their respective roles between AIP and the Member Societies.

4. Report of the Executive Director

1. Gordon & Breach Update
   Ford briefly summarized the activities related to the Gordon & Breach suits since the last meeting. His 29 December 1989 memo to the Executive Committee conveyed the report from Meserve (AIP attorney on the suit) to the effect that the Swiss commercial court has granted our motion to dismiss the action against AIP and APS, with fees and indemnity to be paid. He said that Gordon & Breach has appealed that decision.

   Havens reminded the committee that a comprehensive memorandum, prepared by Meserve in December 1989 is available.

2. Short-term Space Outlook
   Ford reviewed the space situation in Long Island, New York, and Washington. Space is nearly full in U and DC, and NYC is very tight. (See also his 12 February 1990 memo to the Executive Committee on this subject.)

3. Report on 1989 Soviet-American Conference on Chaos
   Ford called attention to his 15 January 1990 letter to Campbell of the Sloan Foundation which gives particulars of the conference and details the costs involved. He deems the total cost to AIP ($19,000) an excellent investment.

4. 1990 Soviet-American Conference on Chaos
   Ford reported that a letter of invitation to the second conference has been sent to U.S. scientists. He called attention to the list of recipients of this letter, a preliminary list of Soviet participants, and travel logistics for the meeting as contained in his 12 February 1990 memo to the Executive Committee. AIP has budgeted $10,000 for the conference, mostly for travel support for American scientists. The Sloan Foundation again has been approached for support for this conference.

5. Gemant Award Presentation

   Ford said the Corporate Associates Advisory Committee bad recommended that the Gemant Award no longer be presented at the Corporate Associates meeting. He has asked Wilson and Havens for advice on an appropriate venue for the award.

   Havens asked why the Corporate Associates Advisory Committee had suggested this change.
   Ford said he was not sure; at the 1989 Corporate Associates meeting the after dinner program was quite full. Nils Muench thought that the Gemant Award had nothing to do with the industrial associates, and that it should not be given at that session.

   Woodall said that if this is an AIP award, it should be given at an AIP meeting. Ford agreed, but said that the Corporate Associates meeting is the only meeting sponsored by AIP, so in keeping with the wishes of the advisory committee, be is seeking a Member Society meeting where the award and requisite lecture by its recipient could be given.

   Following a suggestion from Grant, the Gemant Award Committee will be asked to deal with this question, and report its recommendation to the Executive Committee. In the meantime, Ford will seek a venue for the 1990 Award.

6. Planning Committee
   Ford noted he has charged this year's committee with the development of operational plans for the Institute.

7. Customer Services Task Force
   Ford referred to his 27 November 1989 memo to the Customer Service Task Force. Weart is serving as chair, and a final report is requested by 27 August 1990.

   Wissbrun said the task force met recently with the Committee on Society Services. Some of the problems which have occurred with the F AMIS system are transition problems in going to a new system; others are human error that could be eliminated. He was impressed with the fact that the task force is serious in its work.

8. Congressional Fellowship Program Update
   Ford reviewed the Congressional Fellowship program, and distributed copies of a flyer which invited applications for the 1990-91 program. This year the program is due to be reviewed by the Committee for Public Policy, and a recommendation regarding continuation is requested. He hopes the level of cooperation with APS will be better next year. APS and AIP have both experienced a healthy increase in the number of applicants for this program.

9. Chaos Journal Task Force
   A Task Force has been set up to consider the proposal to start a new journal. Baensch, Taylor and Ford are staff liaisons to the Task Force, which is scheduled to meet on 7 March. A Soviet scientist will be here at that time, and also will participate in the Task Force meeting.

10. Development Office
    Ford reported that Iannoli has begun work for AIP from his office on the third floor of the AGU Building. He expects to fill the two approved additional positions for the office soon. His early priority will be to meet with Society representatives and selected AIP staff. The Development Committee will meet on 15 March; they will try to classify the needs of the Member Societies. Iannoli is enthusiastic about the general concept. His orders are to put the Societies' needs up front.

5. Report of the Treasurer and CFO

1. Investment Advisory Committee Meeting of 7 February 1990
   Bent reviewed the 13 February 1990 report to Executive Committee on the 7 February1990 meeting of the Investment Advisory Committee. Presentations from AIP's principal investment managers were made to the committee. Each portfolio was discussed and the performance of AIP mutual fund investments was reviewed.

   Bent said the most significant recommendation was to get out of the Laub Martin Special Situation/ Arbitrage Account gradually, probably by June, and to move the proceeds to the three managed portfolios.

   Bent reviewed the reports of investment performance for 1989. The overall change in market value from 1988-89 is +14%:

   First Manhattan:	+ 20%
   Minis & Co.:	+ 21%
   Benham GNMA Fund:	+ 14%
   Mutual Beacon Fund:	+ 18%
   Zweig Total Return Fund:	+ 17%
   Fiduciary Management:	+ 19%
   Laub Martin Inc.:	- 26%
   Fidelity Govt Securities:	+ 13%
   Mutual Shares Fund:	+ 15%

   The S&P index of the market has declined, since December 1989, by about 7%.

   Walt and Wilson expressed concern over the large investment in equities. Both felt that AIP should invest more conservatively, and asked about any existing policy governing AIP investments.

   Bent said he believes that current AIP investments, aside from the Special Situation Fund, are not at risk. The Investment Advisory Committee seemed generally satisfied with the spread. He stated that there was no formal investment policy.

   Smith suggested that it would be appropriate for AIP to adopt a formal statement of investment policy.

   Havens moved acceptance of recommendation 1, as stated below. The motion was unanimously CARRIED.

   MOVED that the Executive Committee approve liquidation of the Laub Martin Special Situation/ Arbitrage Account in a manner most beneficial to AIP. Proceeds are to be maintained temporarily in cash equivalents.

   Havens moved acceptance of recommendation 2, as stated below. The motion was unanimously CARRIED.

   MOVED that the Executive Committee approve the addition of the proceeds from the Laub Martin Special Situation/ Arbitrage Account to the existing three managed portfolios at such a time as all or a major portion of the proceeds have been converted to cash.

2. Status of Capital Expenditures
   The Status Report for 1989 and 1990 capital expenditures was presented for information only.

3. Sublease of Washington. DC Space to MRS
   A 23 January letter from John Ballance, Executive Director of the MRS, with signed letter of agreement (22 January) was presented for information only. The lease is for one year with the rent set at $960 per month. MRS has the option of extending it through June of 1991, when the AIP lease with AGU ends.

4. UBIT Update
   A copy of the 12 January 1990 article from Association Trends on the effect unrelated business income tax changes would have on 501(c)(3) organizations was presented for information only.

5. Report on Fulfillment Costs and Recommended Charges to Societies
   Bent discussed his 12 February 1990 memo (attached as Appendix A) to the Executive Committee on Member and Subscribers Services (MASS). At the December meeting, Management had been requested to develop a proposal to alleviate the burden placed on Member Societies in 1990 by the budgeted increase in MASS charges. The major reason for the disparity between estimated and actual costs are twofold:

   1) Estimated costs for 1989 and 1990 were understated. Using 1988 estimated costs as a base, the total increase from 1988 through 1990 estimated costs for subscription fulfillment was 5.6% and there was no increase due to billing and collections and master history record file. Costs for development of the new system were borne entirely by AIP. Depreciation and maintenance on the Wang were recognized in the 1990 budget.

   2) During 1989 APS assumed responsibility for billing and collection of its own member dues and subscriptions, resulting in a smaller allocation base for MASS costs and increased costs to other users.

   Management proposes a reduction of $282,000 in the amount to be charged to Member Societies for 1990 (through a formula detailed in the attachment). Bent noted that the charge to AVS will increase by approximately $11,500 for 1990 because the estimated costs related to JVST-A and B previously had not recognized these as two publications. For 1989, management proposes a reduction of $156,000 (13.4% below projected actual) in the amount charged to Member Societies for 1989 (through a formula detailed in the attachment). The increase in the charge to AVS for that year will be $11,300. If these proposals are accepted, the changes will be reflected in revised 1990 estimated costs (starting with January) and in the final variance statement for 1989.

   Bent's memo noted that in 1991 OSA will be assuming some or all of the MASS functions now performed for them by AIP. They are now being charged about $312,000 for 1989 and $359,000 for 1990. Their withdrawal will reduce the need for some MASS personnel, and expense reductions could approximate $100,000 to $150,000 annually if OSA assumes all this work.

   Wilson asked for an explanation of how these costs came to be understated. Bent said for 1988, the estimated costs were reasonable and close to actual, but they were not realistic either for 1989 or for 1990.

   Woodall commented that, with the profile of MASS changing as a result of APS out and OSA going out, there is a lot of concern over costs for these services among the remaining societies. Wilson said he would like to have AIP management develop a proposal for services to be offered at fixed prices, with adjustments over a several year period rather than within each fiscal year.

   Havens said to carry this out you have to change the Constitution, which states that services are provided to the Member Societies at cost. The idea of estimated prices was that they would be close to actual prices; in recent history they have been quite close. If you change the method, you have to change the organization fundamentally. He has been in favor of having AIP establish a price and then distribute the profits, if any. However, if you were to do this, you would be charging for services in competition with commercial organizations.

   Wilson said he doesn't think it requires a constitutional change. H you come up with a surplus, it comes back to the Board and adjustments are made. There are many ways to determine “at cost.”

   Bent said management has proposed a specific figure for 1989 and 1990. He requested that the Executive Committee address this current proposal now; management can address possible long range solutions to this problem and come back with a proposal at the September meeting.

   Wilson then made the following motion, which was seconded by Jackson, and following discussion, was CARRIED, with one abstention.

   MOVED that a proposal be developed and presented for discussion at the September Executive Committee, after reviewing the relevant background, for pricing of AIP products and services at a fixed rather than estimated cost basis.

   Ford said his sense of the motion on this proposal is that the charges equal the costs, averaged over a period of years. The present management proposal suggests that AIP absorb some expenses for 1989 and 1990, charging less than cost. In addition, the Executive Committee has already voted to eliminate the F AMIS development costs from the MASS charges for 1990.

   The following motion was made by Woodall and seconded by Wilson. Following discussion, the motion was CARRIED, with one NO.

   MOVED that a schedule of MASS Expense Distributions for fiscal 1989 and fiscal 1990 as depicted in columns (4) and (7) of Attachment C, Exhibit A, be approved.

   (See also related discussion under Agenda Item 14.)

6. FAMIS Status Report
   Bent distributed a FAMIS status report dated 22 February 1990. FAMIS is up and running on the Wang/Oracle system. The Univac is no longer being used. Five terminals have been installed in Society offices and are in use. All cash processing, member records, and fulfillment functions are being performed via F AMIS. The system performance remains well below expectations; the goal was to support 33 Oracle users; at present it supports 12-13 users with acceptable response time.

   Wang and Oracle are providing assistance. Ingoldsby has been at the Wang offices to work on the problem of response time. Wang has claimed to have achieved substantial improvement at their test center.

   Bent then reviewed the status of the eight units involved with FAMIS:

   1. MASS payment control: no outstanding problems.

   2. MASS cashiering: no outstanding problems.

   3. MASS Order Entry: backlog agency orders, which are heavy at this time of year. Slow response time is a factor in this backlog. Solutions: reduce the number of Oracle users; improve Oracle system performance; rewrite Order Entry application to use indexed files.

   4. MASS Member Services: backlog in specific areas (SPS renewals, new, resigned/ deceased members.) Problems are the slow response time and complicated processes. Solutions: improve Oracle system performance; develop integrated application for society service processing.

   5. MASS Subscriber Services: there is backlog in specific areas (complaint correspondence, missing issues) due to system performance. No outstanding problems.

   6. MASS Adjustment Control: heavy backlog. The money is in the bank but not processed. Outstanding problems: learning curve of new system; some bugs in cash posting programs; slow response time; complexity of correction process. Solutions: support from programming staff; correction of bugs as identified; improve Oracle system performance; development of edit program for Order Entry batches.

   7. Production Systems Operations Section: outstanding problems: low productivity-learning curve of new system. Solution: additional training and experience.

   8. Information Technology Data Administration (ad hoc list generation): current. Average turnaround: 3.5 days. No outstanding problems.

   Oracle is designing version 6 of the Wang implementation, which will be available in the fall of 1990, at no cost to AIP. Meanwhile, Oracle has made suggestions which have resulted in substantial improvement in batch jobs that update the database, thus giving adequate capacity for overnight and weekend work. Many items in the current backlog are one-time occurrences. An example is agency processing: we are manually picking up ID numbers for every order; once into the system it can be fed back to the agencies, allowing most of next year's work to be done on an electronic basis.

   FAMIS Phase II tasks will include completion of subscription agency electronic order exchange, enhancements in MASS processing, and direct modification of Society-specific data by Society employees.

6. Space and Location Issues

1. Responses from Member Societies
   Ford noted, for information only, the letters regarding space which had been received from Member Societies since October, and which were included with the Agenda for this meeting.

2. Revised MS&B Study
   Ford distributed copies of their revised report, which had not been ready for mailing prior to the meeting. It is comprised of two sections: Financial Analysis (14 pages), and Business Economics and Assumptions, which contains the background information on which they based their assumptions (37 pages).

3. Status of Site Evaluations
   Ford distributed, for information only, a copy of a questionnaire concerning relocation priorities, and an analysis of Society responses. He noted that capital costs, future operating costs, efficiency of operation, sharing of common services, and potential loss of employees as the result of a move were considered of high importance.

   Ford said the new MS&B report mainly emphasizes financial aspects.

   Page 3: groups included in the study. The number of employees is estimated at 175 (73 exempt, 102 nonexempt). ASA, AAPM, and AVS are excluded from the study, as they have already expressed a desire to remain in NY. The column entitled "Other" represents APS employees.

   Page 4: attrition estimates: a move to Baltimore or Philadelphia would result in a total attrition of 62%; a move within Manhattan would result in a total attrition of 20%. For the longer distance moves, their assumption is that 2/3 of the exempts would relocate and 19% of the nonexempts. MS&B’s preliminary estimate is that College Park is a little more expensive than Baltimore.

   Page 9: One-time costs: capital expenditures. These figures are based on 80,000 sq ft of space. This would meet the needs of current employees (175) and 10% growth; the critical element in the bottom line is the difference in per sq ft cost in their assumptions: $125 per sq ft is used in Baltimore and Phila. and $225 in NY.

   Page 10: One-time costs: employee related. $4.5 million for a move away from New York; $200,000 for a move within NY. There is no projected reduction in the number of employees. There is a slightly lower payscale in locations outside New York, and the workweek is increased there from 35 to 37.5 hours. Facility-related costs for a move outside NY are about $1 million; $400,000 for NY.

   Page 13: Summary of costs. The cost difference for space between New York and non-New
   York is about $7 million. The extra cost associated with a move: $3.5 million. Roughly about ½ of the cost saved by the move is offset by one-time costs. A net savings in the first year of $3.5 million is projected.

4. Report from ad hoc Committee on Space - Cost Comparison
   Krumhansl, Chair of this committee, in a memo to Frauenfelder, Ford, Lustig, Park, and committee members Marshall, Noonan, and Wissbrun, reviewed the background for this study, and recent developments. He requested a new date of 5 March for the ad-hoc committee to report to AIP.

5. Discussion
   Ford said he has emphasized that we should not get too hung up on cost comparisons. Monetary savings will be realized with a move out of New York, but projections of the magnitude of these savings are open to question. Intangible factors are becoming as important as financial considerations as we seek to reach a decision as to where to move.

   Ford noted Merzbacher's letter to Frauenfelder, which suggested that the College Park, MD, area be looked at more carefully. Shari Barnett (MSB), Lustig. Schwartz, Ford, and Bent visited a possible site. It offers proximity to an excellent university, to AAPT, to other Washington-based Societies and convenient future access to DC (via a future Metro stop).

   Ford reported that AIP and APS have been in contact with the New York Mayor’s Office, but until recently there has been no evident enthusiasm in that office for making a case for AIP to remain. As the result of efforts by Schwartz, representatives from NYU, CUNY, Polytechnic University, NY State Urban Development Corp, and the Mayor’s Office gave a presentation in early February, and strongly encouraged the Societies and AIP to remain in New York. There was nothing offered on the level of tangible incentives, other than the potential for tax exempt financing.

   Unstructured discussion followed. The Executive Committee explored what was known of the present options in New York and in College Park. Woodall reminded the committee of his suggestion for a three-site model, and asked that the ad hoc committee include this possibility in their studies. Information on such options as a site in College Park, MD, and a building at 555 Broadway in Manhattan, as well as an expression of interest by Friedman of the New York Hall of Science for joining a venture in New York which would include exhibit space, was shared.

   Representatives of the smaller New York based societies (AAPM, ASA, AVS) asked that plans be developed for serving their needs in the event that AIP and APS move together from New York. What space and services would be made available, and at what cost? How would they be consulted and informed about these as plans are developed?

   Ford responded that, if AIP and APS move, AIP would do everything possible to help meet the needs of the small societies which remain in New York, along with those units of AIP which would be left in Manhattan after the move takes place. It is likely that costs for those resident in New York would rise from what they are now; management will work to develop a plan for housing these societies and AIP units, and to provide them services, and to provide estimates of the costs as soon as is practicable.

7. SPIE Consideration of Member Society Status
Ford reviewed contacts he has had with the SPIE President, President-elect, and Executive Director, and summarized SPIE interest in using AIP services. He noted that there are reservations regarding whether SPIE qualifies for status as an AIP Member Society: these include concerns that 1) it is "staff driven" rather than "member driven" and 2) it is an engineering, rather than a physics, society.

Ford introduced SPIE President Emery Moore, who had been invited to attend this portion of the meeting.

Moore said there have been discussions within SPIE; not everyone was in favor of an upgrade of member status, but there is an interest. He said SPIE primarily is interested in the prestige associated with an affiliation with AIP. The SPIE organization is 35 years old; it is often attacked for being too applied, too engineer-oriented. S IE has about 11,000 members and is growing fast. It caters more to applications and engineering, with a special niche in optical engineering. It has recently made a pitch for international participation; it has chapters in several countries; currently there is a chapter in Poland, one in Japan, and an application has been received from Hungary.

Havens asked what portion of their membership consider themselves to be physicists. Moore said about 35% of their conference attendees are physicists, about the same as their membership.

Moore said that they go after what is the latest hot topic within engineering. These interests have a short half-life. They have a large volunteer structure which helps to organize their conferences.

Walt asked how their organization is structured; how are their officers selected? Moore said their Executive Director (Yaver) has been in the job for over 20 years. They had a search committee but he was chosen from within the organization at that time. He has been good for the organization. They also have elected officers. They have 15 to 18 committees made of up volunteers, which have a large part in running the organization.

Beyer asked whether SPIE plans to avail itself of AIP services? Moore replied that this is very possible. They are obtaining information on costs, particularly in publishing. SPIE moved their headquarters from Los Angeles to Bellingham, WA in 1980. There they have a high quality, low cost labor pool (100 employees), and currently adding on to their building. They have an association with the University of Western Washington campus in Bellingham. They publish 150 conference proceedings annually.

Baensch reported that AIP is preparing quotes on a journal, newspaper, proceedings, and book translations.

Woodall said there are concerns in AVS both with the MRS and SPIE. For instance, SPIE plans a symposium on a date that will affect attendance at a scheduled AVS meeting; this is a dilemma for people who are members of both organizations. Moore said SPIE also has this concern and tries to avoid these conflicts. They are attempting to resolve some conflicts with meeting dates.

In response to questions about benefits received by their members, and about SPIE total and publishing budgets, Moore said members receive a monthly refereed journal, a monthly newspaper, and reduced rates on other publications, and a lower rate on meetings. At present, member dues are $65.00. The total budget is close to $10 million, with publishing close to $3 million. The balance is in meetings and exhibits.

The meeting recessed at 5:30 for a reception and dinner.

8. Executive Session
Following dinner, the Executive Committee met in Executive Session, with non-voting participants present, from 7:45 to 8:25 pm. The minutes of this session are reported in the official minutes only.

The meeting reconvened Friday from 8:30 to 8:50 am in executive session, and at 9:00 am in regular session as reported below.

9. Report of the Director of Publishing

Baensch distributed and reviewed a statement of income for the AIP publishing program 1988-89, showing 1988 actual income and 1989 projected, with percentage of increase; this statement reflects show 1989 income only, since actual 1989 expenses have not yet been compiled. The total publishing· come is $22.S million vs. $20.2 million in 1988, or 11.4% growth in revenue. Revenue for Physics Today is up by $200,000. There is a 48% growth in book publishing, but this is still $250,000 under the budget. The statement shows that overall we are under the total publishing income budget by 0.5%. He has made up the difference through a reduction in operating expense. Income of $106,000 has been generated through marketing of IOP publications. He is dividing publishing into several distinct businesses in order to handle them separately. For the Soviet journals, the delay between the Soviet issue and the translated edition with the same “cover date” has been reduced from 6 to about 5 months.

Ford said journal price increases for 1990 were about 10% for archival journals and 12% for translation journals.

1. Off-premise Keyboarding
   Baensch reported that in October 1989, AIP Composition II Division began employing keyboarders working at home on PC's provided by AIP. They started with 8 employees and expect the number to reach 24 by July 1990, which would be 30% of the workload. This assumes an average of 20 hours per week. There are savings due to curtailment of full time staff increases, costly overtime charges and occupancy costs. The "outsourcing" of keyboarding is providing AIP with quality and volume. The work can be accepted directly by the Xyvision composition system. The goal is to continue efforts to reduce the cost per keystroke.

2. Xyvision - Production Status
   Referring to the timetable for implementation of this system, Baensch reported that the project is about three months behind the original schedule. Production work has begun, and the system is functioning and doing what is expected. Software problems are being solved. It appears realistic to expect that the goal of an annual rate of 60,000 pages by December 1990 will be met.

3. General Physics Advance Abstracts
   Baensch reported he had received a memo from Forman stating APS's position in favor of continuing GPAA, and a subsequent resolution passed at 20-21 January 1990 APS meetings encouraging AIP to continue its publication. He reviewed the basis for the recommendation to cease publication, and believes that the recommendation was based on an incorrect calculation. He so informed the Publishing Policy Committee by mail, and that committee, by mail ballot, approved his recommendation to continue publication. A proposal on pricing for 1991 will be presented to the Committee on Publishing Policy in May.

4. Planned VAAP Negotiations
   Baensch reported that negotiations with V AAP are continuing. Our negotiator Martin Levin is going to Moscow frequently. He has recommended talking about renewal now while VAAP is still in place. As a result of the current desperate economic situation in the USSR, they need hard cash and supplies. They want to negotiate directly with the U.S. publisher to do the publishing themselves. The two journals done in this way for AIP and OSA are not doing well; there are many problems. Quinn, however, thinks it · not good to break the contract as they would then go to Plenum. He noted that Maxwell (Pergamon) is working on a deal to build a printing plant across the street from Nauka (the academic publisher in the USSR) near Moscow, in exchange for first option on all scientific publishing. Levin has been asked to start negotiations on a seven-year contract; a tentative date has been set· June to meet with them. Baensch would appreciate any input or assistance from people who have contacts with the Soviets.

   Ford agreed if we are to prevail and prosper in competition with commercial publishers, it is important to maintain scientific contacts.

   Beyer asked about the future structure of V AAP. Baensch said they realize they have to share the revenues with the Academy as well as the Institutes. Their solution is to increase the royalty. Rather than continue with the arrangement t set up joint conferences, there is discussion of setting aside money for bringing Soviet academicians here to participate in conferences. H V AAP disappears and we have to deal with Nauka, we would probably be turned into little more than a subscription agency.

10. Report of the Director of Physics Programs
History Division: The Survey Project on Geophysics is underway. The International Catalog of Sources for the History of Physics and Allied Sciences is being fully computerized. The high-energy physics project on multi-institutional collaborations is beginning. The emphasis will be to analyze the social structure of these collaborations. The role of women physicists will be a part of this study. One objective will be to determine how the historical records of these transient “institutions” can be preserved.

Education Division: A Constitution Revision Committee for SPS has been established. This committee will report to the SPS Council in March. A planning committee, chaired by George Miner, current Sigma Pi Sigma President, is beginning to plan for the Diamond Jubilee Conference of Sigma Pi Sigma in 1996. An educational brochure is in preparation which will contain summaries of the educational activities of all Member Societies and AIP.

Public Information Division: The television project "Science Report: A Video Presentation" is underway. These programs will be both entertaining and informative. Designed to educate the general public, they will be provided to approximately 800 television stations.

Statistics Division: The second National Survey of High School Teachers has begun, this time undertaken with the American Chemical Society to include high school chemistry teachers. Data analysis will begin in the Spring of 1990.

Physics Today: Three special issues are planned for 1990: February- Nanoscale and Ultrafast Devices; May - Chemical Physics; November - Physics Literacy. The monthly schedule is improving so that the mailing date for each issue in 1989 was earlier in the month than had been the case in recent years.

Career Placement Division: Reported under Agenda Item 10. B.

Visiting Scientist Program in Physics (VSPP)
The VSPP has been run by the Physics Programs Office since the Fall of 1989. This change was necessary as the program has languished since Colombia Barrosse left the Washington office. For example, visits per year: 1987 - 31 visits; 1988 - 29 visits; 1989 - 12 visits. 11 visits have been arranged to date in 1990. The goal is to arrange a total of 40 visits during 1990.

Senior Education Fellow
Jorge Barajas is the co-author of "Physics in Context,” a new model being developed for the introductory physics course as a part of IUPP. A team of four physicists are involved: Jim Tanner and Augustus Stanford, Georgia Institute of Technology, Barbara Levi, Physics Today, and Lawrence Coleman, University of Arkansas. He has helped design and is the co-PI (with Dr. Joseph A Peirson, Scottsville Community College) of CHIP (Challenges in Physics), a project to train children to teach other children physics through games and toys. He is also organizing to extend the Visiting Scientist Program in Physics to 2-year colleges.

Physics Programs and PINET
Several divisions are actively involved with PINET. Career Placement posts job opportunities; Education and Employment Statistics posts data that is up for publication; Physics Today posts its Table of Contents and its calendar; Public Information posts its news releases, its letter to reporters, and FYIs.

Grant-Supported Projects

1. IUPP: The IUPP Steering Committee met in Atlanta on 19 January. It was decided to delay testing of new models for the introductory physics course until the Fall of 1991.
2. SEER: Four papers on the SEER project will be given on 7 April at the NSTA meeting in Atlanta.
3. Operation Physics: Six papers will be given on Operation Physics at the Atlanta NSTA meeting. Also, a special meeting for Operation Physics participants will be held; approximately 100 will attend. To date, the Federal dollars supporting Operation Physics have been complemented by over $2,000,000 from State and private sources.
4. Grant support for projects in the History Division currently totals $720,000.
   

   1. Proposed Agreement with Metropolitan University, Mexico
      Rigden presented the letter, "Inter-Institutional Letter of Agreement to Promote Education and Cultural Exchanges between the AIP and the Universidad Autonoma Metropolitana (Mexico)". The purpose of the letter is to allow Barajas as to keep his position at the university and to enable us to cooperate with the university as necessary.

   2. Project SEEP (Students to Explore and Experience Physics)
      A joint AAPT-AIP booth was set up in New Orleans for the AAAS meeting in February. The number of registrants was lower than anticipated, but there was a lot of activity at the booth. It was a good meeting. A second meeting of SEEP was held during the Atlanta meeting of APS-AAPT. A total of 123 6th graders participated in activities planned by Citrynell; he reviewed the details. AIP has been contacted by the government of Kuwait to hold a program there at its expense, and there are requests from individuals and schools. He is pleased at the idea of keeping this activity identified with Member Society meetings. Citrynell would like to expand it; it is a way to attract attention in relation to the meetings.

   3. Report on Meggers Project Award
      Rigden called attention to the summary of reports from each recipient of the first round of William F. and Edith R. Meggers Awards which was included with the meeting agenda. The Meggers Award Committee is now receiving new proposals and will consider these in the spring. An announcement will be made in April.

11. Physics Olympiad

1. Fiscal Report
   Ford referred to his 13 February 1990 to the Executive Committee which gives a fiscal report for 1988 and 1989 (i.e. since AIP took over fund-raising responsibility). Budget expenditures include $30,000 annually for administrative costs at AAPT and S 10,000 annually for administrative costs at AIP. Except for fund raising, all management of the Olympiad resides at AAPT. In 1989 assistance was received as follows: all ten Member Societies, two Affiliated Societies, seven outside organizations-in-kind contributions, 29 cash contributions, totaling $89,000, an $11,000 increase over 1988. Ford said there had been a balance of $5,000 at the end of 1988.

2. Request for $5,000 for 1990
   Ford recommended that the Executive Committee approve a contribution by AIP of $5,000 to the 1990 International Physics Olympiad, plus an additional $5,000 to be used at the discretion of the Executive Director (this same flexibility was approved in 1989). 1989 was the first year in which all Member Societies contributed, plus MRS and SPIE.

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

   MOVED that a contribution of $5,000 in support of the 1990 International Physics Olympiad, plus up to an additional $5,000 at the discretion of the Executive Director be authorized.

   Wilson said all the sponsors get visibility. The U. S. has agreed to host the Olympiad in 1993. Fund raising will be important. He has met with the deputy director of NSF, and made a joint proposal with the ACS to sponsor this event. They are looking for a grant of $500,000 a year for two years. The NSF deputy director was positive and gave indication approval would be given.

12. Proposal to Change Name of AIP Corporation

Grant reviewed the letter from Krumhansl proposing this change, and his correspondence with the AIP Constitution and Bylaws Committee. He stated that he was presenting this as in item for information, without recommendation. The only written response from the Constitution and Bylaws Committee was from Anderson, who addressed the broader question raised by Krumhansl of the role of APS in the physics community. As there is no requirement that the name be included in the Articles of Incorporation, any change would be handled like a change in the Constitution; all but one of the Member Societies would need to approve a change.

Though the discussion indicated that several members were in favor of a change of name that would reduce the confusion between AIP and APS, no one could suggest an appropriate name. It was agreed that this was a good way to stimulate discussion, but that it would take time to develop a consensus once an appropriate name had been found.

Grant said he has a memo from Lehrfeld stating that if we get into a proposed name change, we must check with the U.S. Trademark Office.

13. AAAS Request for Participation in Senior Scientists and Engineers Program
Ford noted the 12 December 1989 letter from Philip H. Abelson, Editor Emeritus and Science Advisory to AAAS, to Ford, asking his support in enlisting AIP in the Senior Scientists & Engineers project, with Steering Committee roster and statement of purpose. AIP is asked to name a representative to the Steering Committee, and to contribute to the startup of the project.

Havens said APS in the past had an experimental program like this; it was a resounding failure. Retired people didn't want to do jobs that had to be done, but wanted to do their own thing.

Ford made the following motion, which was seconded by Wilson, and was DEFEATED with one vote YES, four OPPOSED, and two abstentions.

MOVED that AIP approve a contribution of $3,000 for the AAAS Senior Scientist and Engineers Project and a liaison person to serve in an advisory capacity.

14. Services to Member and Nonmember Societies
Ford explained that he asked for this discussion as he is deeply concerned over loss of business, which could be disastrous if it continues. APS recently has begun providing their own member record and billing services, and OSA will do so beginning in 1991. The consequence is that unit costs will go up; he doesn't see any way to reduce costs proportionate to the loss of revenue. We don't yet face this problem in publishing, but the advent of desktop publishing makes it possible for Societies to do more of their own work. We have a fixed cost for equipment and personnel to run it. The management committee feels all three of the following proposals make sense:

1. We could actively seek more Member Societies and be more receptive to their applications for Member Society status (e.g., SPIE, MRS).
2. We could reduce or eliminate surcharges for services provided to Associate Member and Affiliated Societies.
3. We could solicit business from related scientific and engineering societies that currently are not Member, Associate Member, or Affiliated Societies.

The AIP Constitution requires that services be offered to Member Societies at cost, and authorizes offering services to other member organizations under terms and conditions as may be authorized by the Governing Board. The current terms involve a 7.5% surcharge for Associate Member Societies and a 15% surcharge for Affiliated Societies. Lehrfeld (AIP attorney) advises that our Constitution and New York State law permit offering services outside our member organizations, and he states his opinion that as long as the service offered is related to our basic mission and field of interest, no tax problem should arise.

Ford noted that the discussion at this meeting concerning SPIE interest in Member Society status suggests a reluctance on the part of the Executive Committee to proceed with soliciting new Member Societies.

Jackson said it is important that this type of discussion not take place in a vacuum. It is important for AIP that a five-year plan (an "evergreen" plan) be developed. It should address issues of expenses and of revenue generation. We need to know the scenarios if the societies and priorities change. Soliciting other Member Societies has to be part of AIP projections over the long run, but you don't bring them in just to generate business.

Grant noted that there is a concomitant problem: the time required for withdrawal from services is relatively short (six months), while income is determined as much as eighteen months from the close of a fiscal year. A five-year plan will be useful for AIP as well as for its customers, but unless these rules are changed AIP will remain at risk.

Woodall said he is concerned that there are no requirements that Member Societies do a certain level of their business with AIP. AVS is heavily reliant on AIP as a service organization; other Member Societies have differing commitments and views of what role AIP plays for them. He is opposed to admitting any society unless it contracts for a certain level of business with AIP for a set period. He feels it is ludicrous that Societies can pull their business out any time they want to and still retain full voting membership in AIP.

Havens said that the APS member record system was working well, though the costs have been a bit higher than originally anticipated. In the area of publishing, the APS Audit Committee asked APS staff to obtain independent, comparison, figures on publishing costs; they have been trying to get the data, but it is very difficult to get. The only hard data is for the publication costs of 10,000 pages at Ridge. The cost per page is much higher at Ridge than those pages produced by AIP. He said that AIP is doing an excellent job on publishing.

Beyer said he agreed with the concern that AIP is in an almost impossible position; to provide services, AIP has to buy and maintain expensive equipment, but the societies can pull out almost at will. The fact that AIP hasn't gone is due to the goodwill of the Societies. He thinks we should have a longer contractual period for services.

Baensch said he would like a clarification of Jackson's “evergreen” plan. He doesn't want to build a big structure when only a little one · needed. If AIP can't offer services on a competitive basis, they don't deserve the business.

Smith asked how OSA could find out if AIP would be competitive with other publications. OSA needs to be able to evaluate costs in a parallel way.

Baensch said AIP did an estimate for OSA which he felt was competitive. OSA decided to go elsewhere partly as a result of the fact that AIP didn't have TeX and because of the uncertainties of the Xyvision implementation.

Wilson said this is an example of a general problem. He thinks AIP doesn't have a chance when making such a quote because estimated numbers don't mean anything. The experience has been that actual vs. estimated prices diverge. AIP is not prepared to assure a society what the actual cost will be. He thinks it is important to stick to estimated prices, to make them firm and predictable expenses for a society.

Baensch asked if it is desired for AIP to bid a price that is good for a 12-month period. Wilson said it is.

Grant said this is the first time we've had a discussion focusing on these problems. From the management end of things, they come back after a discussion with a Member Society saying that they have gone to a Society with detailed plans, but a Society doesn't use this except for leverage with an outside publisher. Internally, AIP staff are concerned about how AIP quotes are handled by a Society externally. We should make it possible for Baensch to fix these estimates so people will have the confidence that they are real.

Havens said he had made a suggestion in the 1975 Seitz committee (on long-range planning] that was rejected, but it may be time to make it again. He had said that AIP should have business contracts with each Society, but each one needs to be different, as Society uses vary greatly. APS has discussed having a five-year contract, with review after three years. Their auditors are strongly opposed to any open-ended contract, but we have been functioning this way. There are legal difficulties with his proposal which should be investigated. He thinks this may be the only way it can operate in the long run.

Ford said this discussion is all based on the premise of how we can assure competitive prices to the Member Societies. What can we do to build a broader base over which to spread fixed costs? He asked for comments on suggestions (2) to reduce or eliminate surcharges for non-Member Societies and (3) to solicit business from other organizations.

Jackson said to comment on such proposals, you must be prepared to tell the Societies how soliciting new business will impact the operations. What about additional staff, production schedules, focus, attention to Member Society needs, etc.?

Frauenfelder said the discussion is too amorphous, as there is no concrete proposal before us. Management should come forward with a proposal to review. He thinks we should look seriously at SPIE as an example. Do we want a narrow or a broad interpretation of what constitutes a Member Society?

15. General Discussion
Walt said he is uncertain where we stand on the SPIE situation. Ford said the discussion was to give enough feedback to SPIE to guide them as to whether they should proceed with a formal application. This could be considered at their summer meeting.

Woodall said it is his view that SPIE is fine in what they do. They should not be a closer part of AIP unless they guarantee five year's business. H they show good faith in this regard as an Affiliated Society, we should consider taking them as full members.

Carson said AIP is not just a business; it tries to broadly represent the physics community, and carries out educational programs on its behalf.

Wissbrun agreed; he said what a Member Society is and what its obligation is are separate issues. They should be considered separately.

Jackson said when you bring in new members, it changes the character of the organization. Interests would be compatible, but new programs cost money. She thinks the criteria for membership shouldn't be financial.

Frauenfelder said he senses uncertainty but not strongly negative sentiments toward SPIE or toward the suggestions made by Ford. Admitting new Member Societies such as SPIE would extend our reach in a new direction. Ford should explore this in more detail.

16. Other Business

1. Proposed New Corporate Associate: Helix Technology Corp.
   Ford said that the Helix Technology Corporation of Waltham, MA, has applied for Corporate Associate membership in the $500 dues category. This is a $55 million business with about 450 employees. He called attention to his memo which gave some facts about the company as taken from their 1988 annual report.

   The following motion was made by Ford, seconded by Grant, and CARRIED with one abstention.

   MOVED that the Helix Corporation be accepted as an AIP Corporate Associate at the $500 per year dues level.

2. Input from Society Officers
   Frauenfelder noted letters from Member Society officers which had been received regarding relocation and service issues, and the role of AIP. These were included with the agenda for information only.

17. Future Meetings

EXECUTIVE COMMITTEE AND GOVERNING BOARD
Future scheduled meetings (as of 8 February 1990)

29-30 Mar 1990 (1 pm Thurs - 12 noon Fri) Assembly of Society Officers
30 Mar 1990 (12:45 pm - 1:15 pm) Corporation Meeting, Rye Brook, NY
30-31Mar1990 (1:30 pm Fri - 12 noon Sat) Governing Board, Rye Brook, NY
(The above three meetings will be held at the Rye Town Hilton.)
4-5 Jun 1990 (5 pm Mon - 4 pm Tues) Executive Committee, New York, NY
20-22 Sep 1990 (9 am Thur - 12 noon Sat) Executive Committee, Woods Hole, MA
21-22 Oct 1990 (6 pm Sun - 5 pm Mon) Governing Board, Albuquerque, NM
23-24 Oct 1990 AIP Corporate Associates, Sandia National Lab, Albuquerque, NM

18. Executive Session
The staff and officers were excused at 11:45 am for the Executive Session.

19. Adjournment
The meeting adjourned at 12 noon, followed by lunch.