ASSOCIATED STUDENTS UCLA



ASSOCIATED STUDENTS UCLA

BOARD OF DIRECTORS

Regular Meeting

Friday, March 10, 2006

12:00 p.m.

Kerckhoff Staterooms

PRESENT: Matt Bukirin, Allison Carter (Recording Secretary), Gustavo DeHaro, Andy Green, Werner Hirsch, Melanie Ho, Craig Kaplan, Dorothy Kim, Dave Lowenstein, Robert Naples, Hoi Ning Ngai, Natalie Nguyen, Tina Park, and Bob Williams.

LATE: None.

ABSENT: Richard Orgell.

GUESTS: Mussarch Bata (Daily Bruin Reporter), Cindy Bolton (ASUCLA Food Service Associate Director), Roy Champawat (ASUCLA Food Service Associate Director), Rich Delia (ASUCLA Chief Financial Officer), Jerry Mann (ASUCLA Student Union Director), Janina Montero (Vice Chancellor of Student Affairs), Karen Noh (ASUCLA Special Projects Director), John Sandbrook (Executive Officer Business & Administrative Services), Roberta Wolfson (Daily Bruin Reporter), and Coalition of Coca-Cola Free Campus guests (see page enclosed).

CALL TO ORDER

Ms. Ngai called the meeting to order at 12:03 p.m.

ADOPTION OF CONSENT CALENDAR & ORDERS OF THE DAY

Ms. Ngai asked if there were any changes to the agenda and Mr. Williams indicated that there was a possibility that Executive Session, as listed on the agenda, would be unnecessary. The Board decided to keep that item on the agenda as the time could be used for a discussion regarding Coca-Cola. Ms. Kim moved, seconded by Ms. Park, that the Associated Students UCLA Board of Directors accept the Orders of the Day. Ms. Ngai called for consent. There being no objections, the agenda was approved by unanimous consent.

MINUTES

Mr. DeHaro moved, seconded by Mr. Green, that the Associated Students UCLA Board of Directors

approve the Minutes of the February 24, 2006 Regular Meeting. Ms. Ngai called for consent. The minutes were approved by unanimous consent.

EXECUTIVE DIRECTOR’S REPORT

Mr. Williams offered the Executive Director’s Report to the Board.

Information Items:

A. Financial / Operational

Financial Overview – February financial results are not yet finalized but all indications showed that the Association would exceed budget. There were a few negative variances in allocated expenses due to maintenance projects and a painting project. The Store gross margin appeared to be close to plan, and Mr. Williams indicated that management also expected some savings in labor. It appeared that the Restaurant Division would exceed budget despite the large shortfall resulting from the current issues with Coca-Cola. Other divisions in the Association were close to budget, leading the Association to another strong month. Mr. Delia mentioned that Informal Photography had a great month; reporting a $13,000 positive variance to plan in terms of gross income.

The initial March results appeared to be very close to plan for most of the Association’s departments. The Computer Store saw a positive variance in sales, and Mr. Williams explained that the Computer Store was taking orders for the new Apple with the Intel chip, but currently, orders exceed inventory.

B. Marketing / Products / Programs

New Gaming Model – Management has been meeting to develop a new and exciting recreational gaming experience currently planned to be located in the new Cooperage along with the relocated pool tables. Currently, games are temporarily housed in the Viewpoint Lounge. Management is also studying the possible costs and benefits of creating this program in-house as opposed to using an outside company. In addition, management is discussing methods of generating demand for this service which would include contests, awards, tournaments and other special events.

Cash Register Systems – At the time of this meeting, the Computer Store was in the final stages of changing over their cash register system. Currently this process requires that inventory management be done on one computer and the cash and credit card handling to be done on a separate cash register. This new system will combine both processes and make transactions more efficient while improving customer service.

The Association will purchase parts and assemble them rather than purchasing assembled units from one vendor, which should save the Association over $100,000 in capital expenditures.

C. Facilities / Capital / Construction

Cooperage – The first sketched plans for the Cooperage food areas have been received and comments were forwarded back to the design firm. A walk-through meeting is scheduled for Tuesday, March 14, 2006, to review specific operational issues.

Taco Bell – Taco Bell was given a drawing depicting their space in the new Cooperage and is beginning their initial design work.

Campus Corner – Management continues to develop a plan with the capital and operating cost estimates for a new project at Campus Corner.

Jamba Juice – Jamba Juice is currently under construction.

Healthy Foods Bar – Soon, plans will be out to bid for the equipment and fixtures for the Healthy Foods Bar. ASUCLA Facilities will oversee the construction phase of the project.

South Campus Student Center – There was no update regarding the South Campus Student Center.

Kaufman Coffee Cart – Mr. Champawat continued to meet with the Kauffman representatives to develop a customized coffee cart.

Broad Art – There is no update regarding the Broad Art Café.

D. Campus Partnerships & Integration

Communications Board – Mr. Williams attended the Communications Board meeting on Monday, March 6, 2006, and was pleased with the efforts being made towards financial recovery. Mr. Williams and Mr. Delia hold weekly meetings with Arvli Ward, Director of Student Media, and Ty Tosdal, Chair of the Communications Board of Directors. The Communications Board will not be going forward with a fee referendum during the spring ballot as initially indicated; instead, they will try to reduce labor costs and other expenses in order to mitigate the gross income shortfalls that will occur this year. They are reviewing their online services and methodology for marketing, and they have completed an analysis involving the elimination of print media entirely, such that all publication would be web-based.

The overarching goal is to reduce costs in the short-run and focus the majority of their efforts on increasing revenues for the long-term, including the development of a package that will be well-received by clients. Mr. Williams has asked Mr. Ward to meet with ASUCLA managers to gather insight on new marketing strategies. Ms. Ngai added that she spoke with Jared Fox, the Graduate Student Association President, and he has commented on the Communications Board efforts to work with GSA.

S.A.F.E. Fee Referendum – Mr. Williams read a letter from UC President Dynes which approved the S.A.F.E. Fee Referendum.

EXECUTIVE COMMITTEE REPORT

Ms. Park reported that the Executive Committee met on February 24, 2006. At this meeting, the committee set the agenda for the March 10 meeting.

ENTITIES COMMITTEE

Ms. Park reported that the Entities Committee was moved to March 17 from 2:00 p.m. to 3:00 p.m. At this meeting, Ty Tosdal and Diane Budzik from the Communications Board will make a formal presentation on several strategies for financial recovery currently under consideration by that Board.

FINANCE COMMITTEE REPORT

Ms. Nguyen reported that the Finance Committee met on March 3, 2006. At this meeting, the Executive Director and Mr. Delia reported, and the committee reviewed tentative capital expenditures that will be included in the FY 06/07 Budget & Five Year Forecast.

The committee approved the FY 06/07 Final Budget Schedule, the FY 06/07 Final Budget Assumptions, and the FSMP Capital Expenditure for the Cooperage Remodel ($2.5 million), which will be voted on by the Board at the end of this day’s meeting.

SERVICES COMMITTEE REPORT

Mr. DeHaro reported that the Services Committee met on March 3, 2006. At this meeting the committee heard from Tina Chang, a student from the Academic Affairs office, requesting the extension of the Kerckhoff Hall lounge hours from the second week of the quarter through the tenth week. She presented the committee with a survey from students as evidence of the demand for this change. The committee requested that Jerry Mann report on actual costs associated with the lounges being open for longer periods of time.

The committee then heard the Executive Director’s Report where Mr. Williams presented a mock-up of new ASUCLA gift certificates and discussed the Chancellor’s briefing book, which will be given to the new Chancellor to assist in his or her efforts to become acquainted with the campus.

The committee reviewed an email that was sent to the Board via the Talk 2 Us website regarding the “mall effect” in Ackerman. Mr. Williams will create a response letter to be signed by Hoi Ning Ngai on behalf of the Board.

The committee discussed the new ASUCLA Sustainability Policy. Mr. Williams and Mr. Mann presented the committee with sustainability policies from three entities including the UCLA Campus Sustainability Committee, Harvard University, and the City of Santa Monica. The committee used these examples as a basis from which to evaluate the new policy. The committee included most of the Harvard University policies, and a draft of the revised ASUCLA Sustainability Policy will be reviewed at the next Services Committee meeting.

The committee then discussed issues related to the potential beer/wine service at the Cooperage. They reviewed safety issues and indicated that ASUCLA will need to demonstrate integrity by ensuring that the sale of alcohol to the campus community takes place in a responsible manner. The committee will take a tour of various on-campus pubs located in various colleges across the Southern California region. Mr. DeHaro suggested two dates for the trip and Mr. Mann suggested that the site visits be spilt between the two dates.

The Services Committee will be meeting April 14 and May 5.

PERSONNEL COMMITTEE REPORT

Ms. Kim reported that the Committee met on March 3, 2006 and discussed an item in executive session.

MANAGEMENT REPORTS

Mr. Delia offered the Finance Director’s Report to the Board.

February Month to date Preliminary Sales

The Store’s sales for the month were $146,845 below plan. The Computer Store itself was $224,124 below plan while Apparel was very close to plan. Academic Support was below plan by $5,400, while New Text was above plan by $18,167. Lu Valle was below plan by $3,915 but Mr. Delia mentioned that this area’s wage and other expenses allowed for a healthy contribution for the month, alleviating concerns about gross income deficits. The Health Sciences Store was above plan by $64,736; adhering to their ongoing positive trend year to date. Health Sciences Store management was in communication with the Nursing School regarding additional book sales that are anticipated to occur closer to year-end. The Hill Top Shop was $17,143 above plan and Mail Telephone Web is up 27% from last year, with a positive variance to plan of $8,619 for the month. Mr. Delia explained that MTW sales tend to mimic sales patterns in Bearwear.

Based on these sales, estimated gross margin for the month is only $836 below plan due to the favorable mix of products sold.

The Restaurants Division’s sales for the month were $26,941 better than plan. Mr. Delia reported that the Cooperage had a positive month, reporting a positive variance to plan of $66,167. He also noted that the sales in third party restaurants were very close to last year, with results from Panda showing a decrease from prior year, but both Rubio’s and Sbarro’s showed increases.

March Month to Date Preliminary Sales

To date in March (as of 3/9/06), sales in the Store were $60,347 above plan. Apparel was $58,144 above plan partially due to the men’s basketball team’s success. The Computer Store was below plan by $64,197; however, Academic Publishing Services is above plan by $21,477 and Lu Valle which is currently $7,555 above plan.

Based on these sales, estimated gross margin for the month was $46,146 above plan.

Sales to date in the Restaurants Division were $32,741 ahead of plan. Concessions was above plan by $29,713 due to a basketball game that was moved from Saturday to Sunday. Cooperage was also above plan by $27,741. Mr. DeHaro questioned where the Campus Corner cart sales were being distributed to, and Mr. Williams responded that they are shown in the Cooperage sales.

Mr. Hirsch questioned the declining sales of both the New and Used textbooks. Mr. Williams responded that decline in enrollment directly correlates to the decline of book sales. Mr. Williams mentioned that if the Association could encourage faculty to utilize textbook editions for longer periods of time, available quantities of used textbooks would increase.

SPECIAL PRESENTATION – COCA COLA

Mr. Lowenstein requested that all of the guests at today’s meeting sign the guest list.

Megan Markoff and Alexis Montas presented information from the Coalition for a Coke Free Campus. Ms. Markoff explained that their group is comprised of a diverse group of UCLA students including, MEChA, Muslim Student Association, Asian Pacific Coalition, Samahang Pilipino, American Indian Student Association, African Student Union, Queer Alliance, Student Worker Front, and Social Justice Alliance. Together, this committee has been working since November 2005, to investigate allegations of human rights violations made against Coca-Cola. (Details of these allegations were presented to the Services Committee in January.)

Ms. Markoff stated that the Coalition initially approached the investigation tentatively; however, they feel that the evidence of human rights violations in Colombia is indisputable. It is the Coalition’s intent to educate the campus of this issue and to present evidence of Coca-Cola’s responsibility for these human rights abuses.

Mr. Montas then reviewed the evidence that the committee has meticulously accumulated over several months. He listed the murders of Coca-Cola bottling plant employees that have occurred between 1989 and 2002 in Colombia, and explained that in addition to these murders, hundreds of other Coca-Cola bottling plant employees have been tortured, kidnapped, or illegally detained by terrorist paramilitary forces and their accomplices.

Mr. Montas distributed evidence listed as Exhibits A - E:

Exhibit A: “An Investigation of Allegations of Murder and Violence in Coca-Cola’s Colombian Plants,” contains the findings of a delegation led by Hiram Monserrate, a Council Member from New York City.

Exhibit B: “Labor and Human Rights: ‘The Real Thing’ in Colombia”, which includes the culmination of an investigation conducted by Professor Lesley Gill, which was given to the Human Rights Committee of the American Anthropological Association. Her findings suggest that the Coca-Cola Company fails to protect its workers from the paramilitaries in Colombia. Professor Gill interviewed union leaders, Coco-Cola employees and their family members, other labor union representatives, and lawyers associated with the Coca-Cola case.

Exhibit C: William Mendoza’s business card. Mr. Montas explained that Mr. Mendoza is the president of Sinaltrainal, the union which represents Coca-Cola workers, the union that represented eight the workers killed by paramilitaries. He further explained that Mr. Mendoza spoke to UCLA students regarding this issue last November, reporting that that paramilitaries have been continuing to coerce, terrorize, kidnap, torture and kill any Coca-Cola worker that attempted to organize the workplace. He stated that these paramilitary forces do not act alone; they receive the private information about the workers from various companies. And lastly he mentioned that as of today, not one person has served a day in prison for any of these eight murders.

Exhibit D: A resolution that was passed by Michigan State University stating that the Coca-Cola contract with this university will not be renewed unless Coca-Cola addresses the murders. Michigan State University is the 23rd university to ban Coca-Cola products on campus.

Exhibit E: A press release from the International Brotherhood of Teamsters. Mr. Montas explained that Jim Hoffa, Teamsters General President, feels that it is time for Coca-Cola to protect their workers rights.

Ms. Markoff reminded the Board that based on this information, Coca-Cola is in violation of the ASUCLA Code of Conduct. She also noted several other ways that their coalition has reached out to students in order to educate them about the issue and expressed confidence that their coalition will garner faculty and student support in the following months.

Mr. Williams asked the Coalition about current conditions in Colombia. Mr. Montas responded that the conditions have not changed; however, he feels that the Coalition’s efforts are creating an impact. Mr. Williams then asked what specific steps the Coalition has asked Coca-Cola to accomplish. Mr. Montas stated that the Coalition would like Coca-Cola to:

- abide by a global human rights stipulations,

- address the murders that took place over the past few years, and

- disassociate from the paramilitary (prevent paramilitary forces from entering the premises, and discourage them from establishing training camps near the bottling company.)

Mr. Williams added that the local Coca-Cola bottler itself also needs to abide by these rules, as the mistreatment in question is that of the bottler employees.

Mr. Williams then questioned how the Coalition will measure the success of policy changes in Colombia. Mr. Montas indicated that an essential step would be for Coca-cola to conduct an investigation into these murders, given that local law enforcement resources in Columbia are currently occupied with the ongoing civil war in that region.

Mr. Delia asked whether the Coalition would support a third party investigation into this issue, and Mr. Montas responded that the Coalition would support such a proposition. However, he expressed concern about bias in the investigation given that Coca-Cola has close ties to the independent third party (International Labor Organization) that has begun to probe these allegations. He added that the Coalition has other labor rights groups in mind that could also handle the investigation.

Mr. Green asked what would happen if Coca-Cola were to leave Colombia entirely. Mr. Montas stated that if they leave Colombia, which is not likely, then the Coalition would proceed to investigations of other countries where Coca-Cola companies are located and may have mistreated their employees.

Mr. Kaplan asked if ASUCLA was not to renew its contract with Coca-Cola and thereafter sign with Pepsi, would there be human right issues with Pepsi as well. Mr. Montas stated that Coca-Cola is at the forefront of this issue because of the murders of its bottling plant employees that have been well documented. Mr. Kaplan then asked if the Coalition is reaching out nationally to companies that are also connected with Coca-Cola contracts. Ms. Markoff stated that they are working with United Students Against Sweatshops. Mr. Kaplan then questioned how one creates a policy or rules for a country that is experiencing a Civil War. Mr. Montas explained that Coca-Cola’s prominence and power in the world can have a serious influence on the conditions of its workers in the factories.

Ms. Ngai asked about the continuing efforts of the Coalition to educate everyone on the UCLA campus. Ms. Markoff stated that a majority of the information is being posted on their website, , and the domain name will be advertised.

After the Coalition members left, Ryan Smeets, Undergraduate Students Association Financial Supports Commissioner, addressed the Board with pro-Coca-Cola thoughts. He is leery of blaming a company that is doing business in a country that has such civil unrest and governmental issues. He also feels that if Coca-Cola left Colombia many jobs would be lost and questions that if UCLA signs with another beverage company how that will affect the campus community.

APPROVAL OF FY 06/07 FINAL BUDGET SCHEDULE

Ms. Nguyen stated that the Finance Committee recommended that the Associated Students UCLA Board of Directors approve the FY 06/07 Final Budget Schedule. Ms. Ngai called for consent; with no objections, the motion passed.

APPROVAL OF FY 06/07 FINAL BUDGET ASSUMPTIONS

Ms. Nguyen stated that the Finance Committee recommended that the Associated Students UCLA Board of Directors approve the FY 06/07 Final Budget Assumptions. She stated that, on page four under item number eleven, the price increase was changed from 3% to 4.5%. On page six under item number two, the International Licensing Income will be raised 10%; there was not a percentage there before. On page seven under Utilities item number one, the final increase in rates for next year will be 7.5%. On page eight under item number six, ASUCLA-paid health insurance premiums will increase 5% instead of 8%. Under item number seven, Workers Compensation insurance premiums will now be decreasing 10% instead of increasing. Under item number two, the California minimum wage will increase $.50 per hour in September 2006 and another $.50 per hour in July 2007. On page five under item number three, Mr. Lowenstein stated that student event income should be capitalized. Ms. Ngai called for consent; with no objections, the motion passed.

APPROVAL OF THE EXPENDITURE OF $2.5 MILLION

FOR THE COOPERAGE REMODEL

Ms. Nguyen stated this item has been approved before, however, any capital expenditure that exceeds $100,000, which had been included in the approved capital budget, needs to be re-approved by the Finance Committee and then by the Board of Directors. The Finance Committee approved this item at their March 3 meeting. Ms. Nguyen then stated that the Finance Committee recommended that the Associated Students UCLA Board of Directors approve the Expenditure of $2.5 million for the Cooperage Remodel. Mr. Lowenstein called the question. Ms. Ngai called for consent; with no objections, the motion passed.

EXECUTIVE SESSION

Mr. Green moved, seconded by Ms. Kim, that the Associated Students UCLA Board of Directors move into Executive Session. Mr. Williams requested that Mr. Delia be invited to stay for Executive Session.

The Board entered into Executive Session at 1:55 p.m.

Ms. Park moved, seconded by Ms. Kim, to exit Executive Session at 2:39 p.m.

Ms. Park moved, seconded by Ms. Kim that the Associated Students UCLA Board of Directors approve all actions taken in Executive Session. Ms. Ngai called for consent, and there being no objections, all actions were approved by unanimous consent.

ADJOURNMENT

Ms. Kim moved, seconded by Ms. Park that the Associated Students UCLA Board of Directors adjourn the March 10, 2006, Regular Meeting. Ms. Ngai called for consent, and there being no objections, the meeting was adjourned at 2:40 p.m.

* * * * * * * * * * * *

Pursuant to Bylaw 3, section 3.6(d) of the ASUCLA Board of Directors Bylaws, I have reviewed these Minutes and hereby attest to their accuracy.

David Lowenstein

Board Secretary and Administrative Representative

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download