ASSOCIATED STUDENTS UCLA



ASSOCIATED STUDENTS UCLA

BOARD OF DIRECTORS

Regular Meeting

May 23July 25, 2008,

12:00 p.m.,

Kerckhoff Hall Staterooms

PRESENT: Netta Avineri, Jared Fox, Gary Galbraith, Cinthia Flores, Gary Galbraith, Monroe Gorden, Dave Karlik (outgoing Chair), Susan Klaisner (recorder),), Michael Jedlicka, Dave Lowenstein, Hoi Ning Ngai (outgoing Graduate Representative), Hoi Ning Ngai, CChristopher Recht, Jesse Rogel (incoming Chair), Bernice ShawErika Schlarmann, Mike Soderberg, Shelley Sorger, Jason Sorger, Bob Williams, Jennifer Willis-Graves (Recorder), Amanda York

ABSENT: Jared Fox and , Monroe Gorden Gary Galbraith

GUESTS: Guy Adams (UCLA Store General Manager/Health Sciences), Cindy Bolton (ASUCLA Food Service DirectorDirector of Food Operations), Roy Champawat (Student Union Director), Rich Delia (ASUCLA Chief Financial Officer/Finance Director), Jan Griwach-Ronci (UCLA Store General Manager/Director of Computers/Supply Division & Hilltop Shop), Patrick Healey (ASUCLA Director of ApparelStore General Manager/Director, Apparel/Accessories/LuValle Commons/Health Sciences Store), Karen Noh (ASUCLA Director, Special Projects), Ben Thaler (Daily Bruin Reporter) Mary Lasky (USAC General Representative), Michelle Lyon (USAC General Representative), Sonia Wilmarth (Academic Planning & Budget), Neil Yamaguchi (ASUCLA Store General Manager/Director of Academic Support)

CALL TO ORDER

Mr. Karlik called the meeting to order at 12:07 p.m.

As this meeting was the first of the 2008-2009 Board term, Mr. Karlik requested that those in attendance introduce themselves.

ADOPTION OF CONSENT CALENDAR & ORDERS OF THE DAY

Mr. Karlik noted that he would present the Executive Committee report in lieu of Mr. Fox, and that Mr. Rogel would present the FinanceServices Committee report in lieu of Ms. Avineri, as indicated on the agenda. Mr. Fox Soderberg moved, seconded by Mr. LowensteinRecht, that the Associated Students UCLA Board of Directors acceptaccept the Orders of the Day with stipulated changes. Mr. Karlik called for consent. There being no objections, the agenda motion was approved by unanimous consent.

APPROVAL OF MINUTES FROM MAY 23, 2008

Mr. Galbraith noted that the attendance portion of the May 23, 2008, minutes incorrectly reflected his attendance at that meeting. Ms. YorkFox moved, seconded by Mr. Recht,Mr. Recht, that the Associated Students UCLA Board of Directors approveapprove the mMinutes of the April 18May 23, 2008, Regular Mmeeting. Mr. Karlik called for consent. There being no objections, the minutes weremotion was approved by unanimous consent.

ELECTION OF OFFICERS

After a brief explanation the 2008-/2009 Board of Directors voted via secret ballot on the Election of Officers. The slate, as indicated below, was approved with 9 assenting votes, no dissenting votes, and no abstentions.

Officer nominations for the 2008/2009 Board term:

Chair Jesse Rogel

Vice Chair Netta Avineri

Secretary Dave Lowenstein

ELECTION OF STANDING COMMITTEES

After a brief explanation the 2008-/2009 Board of Directors voted via secret ballot on the Election of Standing Committees. The slate, as indicated below, was approved with 9 assenting votes, no dissenting votes, and no abstentions.

The Nominating Committee has selected the following members for the following positions:

Executive Committee: (From September 1 until August 31 of the following year)

Netta Avineri BOD Vice Chair CHAIR

Jesse Rogel BOD Chair

Dave Lowenstein BOD Secretary

Bob Williams Executive Director (ex-officio)

Finance Committee: (From August 1 until July 31 of the following year)

Shelly Sorger Graduate Representative CHAIR

Cinthia Flores Undergraduate Representative

Dave Lowenstein Non-Student Representative

Gary Galbraith Non-Student Representative

Bernice Shaw At-Large-Member

Services Committee: (From August 1 until July 31 of the following year)

Amanda York Undergraduate Representative CHAIR

Jared Fox Graduate Representative

Chris Recht Graduate Representative

Bernice Shaw Undergraduate Representative

Monroe Gorden Non-Student Representative

Michael Jedlicka Non-Student Representative

Personnel Committee: (From October 1 until September 30 of following year)

Jared Fox Graduate Representative CHAIR

Amanda York Undergraduate Representative

Monroe Gorden Non-Student Representation

Mike Soderberg Non-Student Representation

EXECUTIVE DIRECTOR’S REPORT

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

Information Items:

A. A. Financial/Operational Items

Financial Overview

Mr. Williams reported that net income results for May exceeded plan by $236,000. Positive variances in contribution were seen across all divisions - save Services, which was within $1,000 of plan. Mr. Williams noted the strong performance of the Store, which was $231,000 ahead of plan in terms of gross income owing primarily to increased sales in the Computer Store, Apparel, and Graduation Etc. He also noted that Administrative and Support Services wages and benefits continued to be less than planned and that depreciation was also down as the result of timing of capital projects. Conversely, maintenance expenses were higher than plan given higher career wages and less capitalized wages than anticipated. Likewise utility expenses were higher than plan as the result of increased rates.

June results also exceeded plan in terms of net income ($110,000) - there were notable positive variances in both gross income and contribution from all divisions. Mr. Williams called the Board’s attention to strong sales in Apparel, the Computer Store and the Academic Publishing Service. He also noted significant negative variances in sales in New Text and General Books, and explained that these results could easily be correlated with other economic indicators. The previous month’s cost savings trends continued in Administrative & Support Services in June and as before, maintenance and utility expenses were greater than anticipated.

Mr. Williams spoke for a time about future challenges for the Association, specifically the Restaurants Division, given recent increases in food and energy costs and the slumping national economy. He indicated that management is confident that July results will remain more or less consistent with June, but cautioned the Board that results will most likely be significantly less than those from the same period in the prior year, as in 2007 the Association booked two years of sponsorship funds commissions from the Coca Colaa soft-drink beverage contract and an adjustment to interest expense and long term debt principal due to the refinancing of said debtsaw the reclassification of a significant portion of its long term debt. On a positive note, Mr. Williams reminded the Board that year to date in June the Association reported a positive variance of $1,372,000 to plan and only a $42,000 negative variance to the prior year in terms of net income.

Mr. Williams announced that AprilMarch financial results were strong and exceeded plan by with an overall positive variance in net income of $104,000 and exceeded last year by $232,000. The Store was above plan for the month by $29,872 in terms of contribution. In tThe Textbook Division missed it’s budgeted sales plan but sales versus last year were solid. Contribution was off plan by $26,460.New Text saw a contribution increase of $12,000 over last year and Used Text was equivalent to 2006-2007. The Supply Division exceeded planned contribution by $99,560 for the month due primarily to the continued positive trend in the Computer Store. The LuValle Commons Store was below plan but experienced strong year-end-results versus last year. The Health Sciences Store was below plan in terms of contribution.

The Restaurants Division saw a positive variance of $42,766 in gross income and $24,566 in contribution. The most positive results were seen in LuValle and the Bombshelter. As expected, the only sizable negative resulted from delays in the completion of the Cooperage renovation. An excellent financial performance was seen in Catering which exceeded its planned contribution by $24,532.

The Services Division was below its contribution plan by $47,171 due to shortfalls in Domestic and International licensing. The Student Union Division continues its positive trend due primarily to reduced wages. The Administrative and Support Services division continued its positive trend with a positive variance of more than $35,000 across the division. These combined results, along with less than projected depreciation costs led to a very strong overall performance across the Association in April. Overall, year-to-date net income was very close to 2006-2007.

Mr. Williams announced that May month-to-date sales indicated positive trends in both the Store and Restaurants Division. Overall results for the month of May are expected to be ahead of plan.

B. Marketing/Products/Programs

Bearwear Catalog

Mr. Williams distributed the latest edition of the Bearwear catalog to the Board and reported that it would be distributed officially on August 4, 2008. At the time of this meeting the UCLA Store website was in the process of being updated to reflect new merchandise and prices, and Mr. Williams highlighted the fact that the site would have a similar look and feel to the new catalog.

 

Textbook Programs

At the time of this meeting management was working on to prepare the new textbook rental and guaranteed textbook buyback programs in preparation for Fall Rush.

Passport to Savings

Mr. Williams reported that the 2008 Passport to Savings booklet that is distributed in the UCLA orientation packages was complete, and he provided the Board with a sample. He explained that the booklet contained coupons for discounts and free merchandise as in prior years, and that as before increased discounts are available to ASUCLA Benefits U members. This year however, the Association’s Core Values campaign logo is also displayed.

A short discussion ensued regarding the potential addition of a loyalty program to this promotion wherein customers could receive still more bonuses and discounts for visiting multiple ASUCLA-run locations. Mr. Williams indicated that management is in the process of developing an electronic tracking component for such a program and that he is hopeful that some variant thereof could be implemented in 2009.

Costco Ticket Promotion

The Association partnered with the Department of Intercollegiate Athletics, the Central Ticket Office and Costco in a program to market to UCLA Football season ticket holders. A flyer and coupons for Bearwear were included in the promotional package containing a logoed t-shirt and pin that would be received by those who purchase season tickets from Costco.

UCLA Store Projects

Mr. Williams reported that this summer the Store management team was developing several marketing projects including:

1. a summer mailer promoting textbooks;

2. a specialized marketing program geared towards the Graduate Student population; and

3. a “green” section in Ackerman Union wherein environmentally sustainable products are highlighted.

 

Student Union Orientation Brochure

At the time of this meeting tThe Student Union Division waiswas in the process of finalizing a new orientation brochure that contains information about the Associated Students and its Core Values, the Board of Directors and Student Government, as well as textbooks, jobs, and opportunities for student voice. This brochure also contains coupons and information about the Computer Store, Bearwear and other UCLA Store products.

 

VH1 Honors Event

On July 17, 2008, UCLA hosted an event called VH1 Honors The Who where several multi-platinum rock bands including Pearl Jam, Foo Fighters, The Flaming Lips and Incubus performed in honor of The Who. The Associated Students provided concessions for this event, offering a menu that had been modified at the client’s request to be more ‘”green’”, focused on sustainable and healthy foods as opposed to standard concessions fare. By all reports the level of service provided by ASUCLA staff was exemplary and management was pleased to report strong sales results.

Countrywide Tennis Tournament

The annual Countrywide Tennis Tournament (formerly the Mercedes Benz Tennis Tournament) was scheduled to take place August 4-10, 2008, and the Association would again offer the Champion’s Club dining facility for attendees. Mr. Williams invited the Board of Directors to enjoy dinner at the Champion’s Club during one night of the event. Management anticipated that financial results from this event would be significantly decreased from those in prior years given that the event has lost momentum in recent years and this year’s tournament coincides with the opening of the 2008 Beijing Olympics. Event organizers were taking preemptive steps to increase attendance including advanced marketing and the inclusion of several “Legends Events” where matches would be held between historically notable players including Jim Courier, Wayne Ferreira, Aaron Krickstein, John McEnroe, Mikael Pernfors and Mats Wilander.

ASUCLA Benefits U – The last Benefits U email of the year was sent out on June 2nd. Highlighted in this email was The Buyback Price Inquiry site which provides students the opportunity to inquire online as to how much they can receive back on their used textbooks.

Miscellaneous Marketing Efforts – Marketing is focused on several upcoming programs which include; Summer Orientation materials, Textbook Initiatives, next year’s Bearwear Catalog and various marketing materials for football season ticket holders.

C. Facilities/Capital Projects/Construction

  

Proposed Use of B-level Space (formerly Shoe City)

In earlyWinter calendar year 2008 Shoe City indicated that they wished to terminate their lease agreement for the space they occupied on the B-Level of Ackerman Union agreement early negotiated early termination of the lease agreement (July 1, 2008) they such that, effective July 1, 2008, the space immediately north of the Market was vacated.. Management has proposed a plan to utilize this space for existing UCLA Store functions rather than engaging another 3rdthird party vendor in a lease. This proposed plan would separate the existing space into two, where the northern portion would be used to supplement the Bearwear stockroom and back of house operations and the southern portion would be used as retail space. Cards, plush products, and small novelty items currently located at the periphery of the Market would be moved into this space, and a portion would be used to offer photographs, matted prints, and postcards featuring images from the UCLA Photography historical archive. Space created by this re-organization would allow for wider aisles and an increase in product offerings in the Market. Also, space formerly used for the sale of plush products and novelties would be used to highlight “green” and environmentally sustainable products.

This project was anticipated to cost $180,000 and would take the place of a $365,000 capital project to renovate the existing Bearwear stockroom that was included in the FY 08/09 budget. Mr. Williams explained that $60,000 of this expense would be applied to the renovation of the existing stock room and that $120,000 would provide for construction, lighting, fixtures and other costs related to the new stockroom and gift shop area. Unfortunately detailed cost estimates were not available for Services Committee or Finance Committee approval earlier in July and as a result, no actionable item could be forwarded to the Board of Directors for consideration. Mr. Williams indicated that he intended to pass formal approval for this project through the Executive Committee. He committed to provide a detailed report on this project at the August 29, 2008, Board of Directors meeting.

CampusLink

Earlier in 2008 CampusLink, the firm that provides a back-lit advertising display board which offers free internet access on the A-Level of Ackerman Union, renewed its existing operating agreement with the Association – contingent upon the installation of several upgraded and improved terminals in place of the current system. Mr. Williams reported that at the time of this meeting installation of the promised terminals was incomplete as the result of technical issues. Mr. Delia noted that the contract specifies that these terminals were to have been installed by AprilJuly 1, 2008 and reported that he had communicated a final demand to the new owners of this firm. CampusLink was given one week to comply with the terms of the contract and the failure to do so would result in a material breech of contract and would be grounds for termination of their agreementnullification.

Avenue A (formerly the Cooperage)

Work continued on the renovation of the Cooperage. Mr. Williams reported that this area would be re-branded “Avenue A” and has been designed to function as a thoroughfare from Bruin Walk towards Engineering and South Campus, as well as a point of service for the campus population. The space formerly occupied by the Post Office, located across from Jamba Juice and Taco Bell, would be converted to a healthy grab-and-go/produce stand called “Curbside at Avenue A”.

At the time of this meeting, flooring in the approaching hallway had been replaced and work on the coffee area was nearly completed. Contract negotiations continued with Carl’s Jr., as well as the design firm engaged for the game room portion of the project. Quality issues with new tables were resolved as the manufacturing company sent representatives from their Texas headquarters to personally repair and strengthen them. Management was confident that the dining room in this area would be operational by the start of Fall Quarter despite possible construction issues related to ventilation requirements for Carl’s Jr.

1st Floor Ackerman Union

Casual Dining Facility. Mr. Williams reported that at the time of this meeting requests for proposals to operate a new casual dining operation that includes beer and wine offerings had been distributed to multiple vendors including Sodexo, the firm that operates the Silo Café, a pub on the campus of UC Davis that conceptually resembles the kind of operation management hoped to implement in the Ackerman Union. Management had yet to receive responsesresponses; from these requests however the Finance Director’s Office was scheduled to make follow-up contact with each of the recipients during the last week in July. Also, management expressed its intent to schedule a trip to UC Davis to review the Silo Café and Mr. Williams invited Board members to attend.

Available Lease Space (formerly STA Travel). On Friday June 27, 2008, STA Travel informed management that, as the result of financial hardship, it would close 43 locations nationally, one of which was located on the A-level of Ackerman Union. At the time of this meeting management was in the process of seeking tenants to replace STA, of which, the following options had been presented:

1. Kaplan. Management was approached by Kaplan, a major testing preparation service who expressed interest in occupying this space. However, this option was explored in 2003 and the University asked that wethe Association refrain from not pursuingerejected the proposal, citing concerns about the ‘teachingthe “teaching nature’” of the services provided by such a service. Management intends to explore this possibility further.

2. Blood Donation Center. The UCLA Blood and Platelet Center had also expressed interest in this space, seeking to establish a high visibility donation center. An extended discussion followed regarding the appropriateness of such an operation on A-level.

3. Campus Welcome Center. Mr. Williams reported that, although UCLA Student Affairs had no interest in the establishment of a Welcome Center that would include campus housing, financial aid and other student services, management may still pursue the Welcome Center concept in cooperation with the Alumni Center.

South Campus Student Center

Mr. Williams reported that the South Campus Student Center Working Group met with architects and formal plans for this project had been filed with the UC Regents. He explained that currently management was in the process of developing a letter of understanding that delegates operating authority for this student center, a statement similar to that which protects the Association’s operating authority in North Campus.

Food Service Working Group

Mr. Williams reminded the Board of the recent formation of the Food Service Working Group wherein members of the Board were invited to participate with management in brainstorming sessions related to food offerings for new venues. This group met the week before this meeting and was scheduled to meet again the week following.

Campus Link – The new Campus Link terminals are planned , to be installed on Ackerman 1st Floor is planned infor June.

Post Office Project– The construction process is ongoing and the new space is expected to be complete by late May.

Shoe City Space – Sixteen proposal requests for proposal were sent out to prospective operators on April 24th which include shoe, apparel, beauty aids, gaming and nutrition. The search will be expanded as limited responses have been received.

Cooperage – The banquet area, wall lighting and carpet have been completed.

Computer Gaming Area – Final architectural plans are soon to be completed for the Board’s review.

1st Floor Ackerman and South Patio – The final Board presentation is near completion and an RFP, explaining the vision for the project will be sent to prospective 3rd party restaurant operators.

Major ASUCLA Maintenance Projects

– Jimmy’s Condiment Stand

– North Campus men and women restrooms remodel

– Replace Viewpoint lounge carpet

– Kerckhoff Hall 2nd floor men’s restaurant remodel

– Replace Ackerman store office carpets on B and A level

– Build Bookzone display cases and install lighting

– Build out of the Ackerman 3rd floor student conference room

– Installation of hand dryers in Ackerman restrooms

– Build storage units for Marketing

D. Campus Partnerships & Integration

USAC Office Space

Mr. Williams communicated to the Board the need for additional office space as expressed by the Undergraduate Student Association.

Student Government Digitization

The new effort to shift the execution of all Student Government processes to an electronic format was near completion. Pending the successful outcome of this project management intended to implement similar procedures in Services & Enterprises as well.

Welcome Week

The Association would again support campus Welcome Week orientation activities by offering free food and Store events and promotions. The Store was also working in conjunction with the Anderson School of Management to provide orientation information to EMBA and FEMBA students regarding the purchase of laptops and computers.

MrMr. Williams reported that management was working closely with Ms. Ngai, outgoing Graduate Student Representative to the ASUCLA Board of Directors, and Ms. Christine Wilson of Graduate Student Affairs, to prepare materials for GSA Orientation on September 19th. This year’s brochure will include information about Textbooks, Computer Store, ASUCLA Core Values, and ASUCLA Benefits U. It will also include coupons for the UCLA Store and Restaurants. At the Resource Fair portion of the event ASUCLA will highlight its sustainability efforts with information and giveaways such as the new Store Chico bags and Coffeehouse refillable mugs.

Chancellor’s Office

At the time of this meeting, Mr. Patrick Healey, UCLA Store General Manager and Director of the Apparel Division and Health Sciences Store, was working with the Chancellor’s Office to develop a sustainable pen and refillable water bottle inscribed with the tag line “Blue + Gold = Green”. These products would be distributed through the Chancellor’s Office as promotion for campus environmental sustainability efforts.

E. Organizational Priorities

Sustainability

Mr. Williams reported that management continued to expand the selection of environmentally sustainable products offered by both UCLA Restaurants and the Store, and that Services & Enterprises continued to pursue sustainable practices and the conservation of resources. Mr. Williams reported also that he had been asked to participate in a Sustainable Food Service Working Group that included members from throughout the UC system.

Growth Markets Issues

Shortly before this meeting Ms. Cindy Holmes, ASUCLA Director of Trademarks and Licensing returned from a trip overseas to visit with existing licensees and research potentialdevelop new licensees. Stops included China, Korea, Great BritanBritain and several locations in continental Europe.

Core Values Campaign

The existing Core Values Campaign was prepared for roll-out during Fall Rush. Management would like to expand this program to better inform campus administration, faculty and staff about the Association, its Board of Directors and programs.

Textbooks

At the time of this meeting management was in the process of developing an email to UCLA faculty and staff that would offer a detailed explanation of the Association’s new textbook rental and guaranteed buyback programs as well as information related to recent price reductions that would take place in the Fall..

Student Union Master Plan Initiative

Over the coming year management intended to conduct field research by visiting other major university student unions to facilitate the development of this plan. At the time of this meeting the Executive Committee was considering the formation of a separate committee dedicated to this project.

Labor Strike

Mr. Williams reported that AFSCME workers who had been on strike during the second week in July had since returned to work and that union negotiations with the UC Regents had resumed.

Spot Bonus Program

Management had been working closely with the Board of Directors Personnel Committee to revise the Association’s current Student Employee Spot Bonus Program. Management recently received valuable feedback from student employees about proposed changes to the program and based on this information, the committee will be presented with a would revised and finalize this program at its next meeting.

Construction DelegationIndependent Skilled Contractors

At the time of this meeting Mr. Williams had no updates on the Association’s continuing effort to obtain authority to contract directly with outside contractorsnon-UCLA Facilities-affiliated vendors for construction and skilled labor projects and thereby be freed from the requirement to not have to utilize University Facilities for certain projects.

Mr. Rogel asked if there were questions for Mr. Williams and seeing none, he moved to Standing Committee reports.

Textbook Audit – The first phase of the textbook state auditing process has reached completion. The Association provided operational and technical information regarding procedures. The audit included work with faculty, departments and administration.

UCLA Day – ASUCLA supported UCLA Day by providing Bearwear and Bookzone coupons. Store hours were extended and additional service support was provided throughout the Student Union.

Mr. Karlik asked if there were questions for Mr. Williams, and seeing none, he moved to standing committee reports.

EXECUTIVE COMMITTEE REPORT

Mr. Karlik reported that the Executive Committee met on July 15, 2008, at 1:00 PM. The committee heard an abbreviated version of the Executive Director’s Report, reviewed management’s current plan for the space recently vacated by Shoe City, finalized nominations for the 2008-2009 Board of Directors Officers and Standing Committees, and discussed a proposed motion for additional textbook price reductions. The committee then reviewed the language of several Board of Directors bylaws, and indicated that it would continue this effort at subsequent meetings. Finally, the committee set the agenda for the July 25, 2008, Board of Directors meeting.

The Executive Committee met on May 12th and heard a brief version of the Executive Director’s report. During this report the committee discussed the Cooperage Video Wall and Burger Concept projects. Next, the committee discussed the Ackerman first floor project. After the committee discussed the agenda for the year-end retreat and finalized the Board meeting schedule for the 2008-2009 academic year, the committee set the agenda for the May 23rd Board meeting.

FINANCE COMMITTEE REPORT

Mr. Recht reported that the Finance Committee met on July 18, 2008, at 9:00 AM. The committee heard a version of the Executive Director’s Report, as well as the Finance Director’s Report wherein Mr. Delia reviewed both May and June Financial Statements as well as preliminary July month to date sales. Finally, the committee held an executive session discussion regarding the aforementioned proposed motion for additional textbook price reductions.

Mr. Recht reported that the Finance Committee met on May 9th. Mr. Arvli Ward, the Director of Student Media presented the Communications Board FY 08/09 Budget and Five-Year Forecast. While the committee expressed concerns regarding the Communications Board future cash situation, they agreed that the budget for the upcoming year appears to be sound. Mr. Champawat presented the FY 08/09 Budgets for the Graduate and Undergraduate Student Associations. Next, the committee heard a version of the Executive Director’s report followed by a version of the Finance Director’s report.

The committee discussed revisions to the proposed new format of the cash reserve calculation report that will be added to the monthly financial statements. Then the committee recommended that the Board of Directors approve the following action items:

1. The Services and Enterprises FY 08/09 Budget and Five-Year Forecast; and

2. The Communications Board FY 08/09 Budget and Five-Year Forecast

Mr. Recht reported that the Finance Committee met again on May 16th and discussed the Hamburger Service options in the Cooperage. The item was forwarded to the Board for Executive Session.

SERVICES COMMITTEE REPORT

Mr. Rogel reported that the Services Committee met on July 11, 2008, at 12:00 PM. The committee heard a version of the Executive Director’s Report then reviewed management’s current plan for the space recently vacated by Shoe City.

The committee also discussed concepts for the development of an international news lounge within the Viewpoint Lounge and heard a version of the Association’s report on sustainability efforts.

Mr. Rogel informed the Board of Directors that the final title of the new game room in Avenue A is “Game On!”.. Ms. Avineri reported that the Services Committee met on May 9th and heard a version of the Executive Director’s report, followed by a sustainability update by Roy Champawat in which Mr. Champawat discussed the recent USAC elections and how this reflects the campus’ focus on sustainability issues. He next introduced the new Chico bags. The committee then discussed and approved the store’s proposed “Reduce/Reuse Shopping Bag Program.

The committee then discussed the results of the student union survey and decided this should be an issue to be discussed at the year-end retreat. Finally, the committee recommended that the Board of Directors approve the following action items:

1. Restroom Hand dryers in Ackerman Union; and

2. Capital Expenditure for the Cooperage Video Wall.

Mr. Rogel asked if there were questions for those who had presented and seeing none, he moved to The Finance Director’s report.

FINANCE DIRECTOR’S REPORT

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

AprilMayMarch Financial Statements

Mr. Delia reported that in May the Association as a whole exceeded plan by $236,000 in terms of net income, thus raising the positive variance year to date to $1,262,000. In comparison with the prior year, these results were $63,000 better for the month and $50,000 better for the year.

In terms of gross income, the largest positive variance was seen in the Store, which was $231,000 ahead of plan as the result of increased sales in the Computer Store (predominantly due to a which was $107,000 rebate from Appleahead of plan), Bearwear (which was $27,000 ahead of plan), Graduation Etc. (which was $33,000 ahead of plan), and the Health Sciences Store (which was $81,000 ahead of plan). These results combined with strong gross margin results (a positive variance of $158,000 to plan and $75,000 against the prior year), as well as cost controls in wages and benefits (which were $14,000 better than planned) allowed for a positive budget variance of $174,000 in terms of contribution.

The Restaurants Division also reported a positive variance in terms of gross income ($43,000) mainly as the result of strong sales in LuValle Commons (which was $23,000 ahead of plan), and Catering (which was $47,000 ahead of plan). These results helped to offset a $51,000 negative variance in the Cooperage. While this division also realized positive variances in terms of gross margin ($18,000) and, wages and benefits ($19,000), and other controllable expenses exceeded plan by $16,000, such that contribution was $21,000 ahead of plan.

In May the Services Division reported a negative budget variance of $15,000 in terms of gross income due primarily to shortfalls in both domestic and international licensing. However, decreases in other controllable expenses (which were $14,000 better than plan) served to offset this variance such that this division reported a negative budget variance of only $1,000 in terms of contribution.

Gross income from the Student Union Division was close to plan (a negative variance of $3,000), and cost controls in wages and benefits and other controllable expenses allowed for a positive budget variance of $10,000 in terms of contribution.

To date in May the Association’s cash book balance was $19,340,000 - an increase of $130,000 over the same period in the prior year. The Association had committed $12,945,000 to capital projects thus leaving $3,604,000 in reserve, an excess of $1,802,000 above the Board Required Cash Reserve.

By month-end management anticipated that it would spend $243,900 less than planned on capital expenditures for the year, and past due accounts receivable remained consistent with the same period in the prior year, at just over 2% of the total.

Store inventories fell to the lowest point in three years and as did iinventory turns, however turns remained above 5.0, a level accepted as healthy by the industry standard.

June Financial Statements

Net income for the month of June exceeded plan by $110,000 but fell short of the prior year by $92,000. Likewise, year to date net income exceeded plan by $1,372,000 but was $42,000 behind the prior year.

In terms of gross income, positive variances were reported in all divisions:

1. The Store was $20,000 ahead of plan due to increased sales in Bearwear and the Computer Store;

2. The Restaurants Division was $31,000 ahead of plan due to increased sales in Catering, LuValle Commons, and the Green House;

3. The Services Division was $19,000 ahead of plan due to increased income from a foreign licensee; and

4. The Student Union Division was $65,000 ahead of plan due to new events and increased income from the Post Office.

Much of the positive effect of these results translated into contribution as positive budget variances were seen in all divisions as well:

1. The Store was $11,000 ahead of plan;

2. The Restaurants Division was $22,000 ahead of plan;

3. The Services Division was $15,000 ahead of plan; and

4. The Student Union Division was $36,000 ahead of plan.

As in prior months, Administrative and Support Services expenses were less than planned ($24,000) but maintenance and utilities expenses were higher than planned ($17,000 and $6,000 respectively).

In terms of cash the Association’s book balance was $18,850,000 at month end. This represented an $874,000 increase over the same period in the prior year. Mr. Delia noted that June saw a net decrease in cash of $490,000 however he reminded the Board that this is part of normal annual cyclical cash flows, as summer months reflect lower sales levels due to the significant decrease in the campus populationmuch of the inventory sold during Fall Rush is acquired during this month. Given this cash balance and the fact that the Association had, at the time of this meeting, committed $12,865,000 to capital projects, there was a $2,635,000 surplus over the $1,758,000 Board required cash reserve at the end of the month.

Based on the current progress of projects as of June, management anticipated spending $132,900 less on capital projects by year end.

Past Due Accounts Receivable rose slightly, to roughly $42,000 or 2% of total accounts due.

Store inventories at cost rose from the prior month but remained below the same period in the prior year, and inventory turns were healthy, at just below 5.2.

AprilMarch results were better than plan in terms of net income by $16904,000 and in terms of contribution the Store was $6830,000 better than plan. The Restaurants Division was better than plan by $25,000 in terms of contribution, but the Cooperage was below plan by $24,000 due to the delay in the remodeling process. hHowever this negative variance was offset by results in LuValle, Catering and Concessions. The Student Union was better than plan by $2410,000 due mainly to some unplanned events. and tThe Services Division had a negative variance of $47,000 in contribution due to less licensing income from International, caused mostly by the bankruptcy of a Korean sublicense, and Domestic, caused by not obtaining a large licenseewas close to plan. Depreciation was lower than plan by $41,000. and and operating income was $161,000 better than plan although it was below last year by $43,000. . . Administrative & Support Services was better than plan by $37,000. and year to date operating income was above plan by $161,000 but was behind last year by $43,000. Year to date, net income is $1,027922,000 better than plan and very close to last year., although $245,000 less than last year

At the end of the period the Association’s cash book balance was $19.317.7 million, which and year to date was above last year by $1.74 million. The cash reserve indicated a surplus of $2.2$3.2 million over the required amount. Past due Accounts Receivable dropped from $140,000 to $80,000 to $40,000 and inventory turns remained at a little aboveabout 5.

Mr. Delia indicated that, all in all, it was a strong financial performance for the month.

MayJulyApril Month to Date Preliminary Sales

To date in July Store sales exceeded plan by $144,401. Notable positive variances were seen in the Computer Store, which was $1414,438 ahead of plan; Academic Support, which was $37,003 ahead of plan; LuValle Commons, which was $5,107 ahead of plan; and Mail Telephone and Web sales, which were $1,868 ahead of plan. Together these results offset negative variances in the Apparel Division, which was $11,512 off plan; and the Health Sciences Store Medical Supplies department, which was $14,125 off plan.

Based on these results management anticipated that gross margin for the Store should be approximatelywill be $176,000821 ahead of plan by month end.

As of this meeting the Restaurants Division was $120,771 ahead of plan with significant positive variances appearing in LuValle Commons, which was $10,938 ahead of plan; Catering, which was $17,841 ahead of plan; and the Greenhouse, which was $23,621 ahead of plan.

A short discussion followed regarding the Association’s current long distance telephone calling card offerings.

MayApril month to date total Store sales were belowabove plan by $28,000257,000. Most of the negative variance is due to Tthe Computer Store was ($87,000) and New Text ($$24,000) which was offset by a $56,000 positive variance from Apparel. 340,000 above . Also Health Sciences was off plan by $73,000, due to a timing issue with the dental kits, but LuValle was $48,000 higher, mostly due to higher New Text sales ($45,000plan and $212,000 above last year. Academic Support was $113,000 above last year, even though they were $57,000 under plan. Due to a timing issue LuValle was below plan by $60,000 but above last year ytd by $200,000. Health Sciences Store was below plan by $43,000 due primarily to the decline in medical textbook sales. Year to date they are $64,000 better than last year and $27,000 below budgeted plan. Mail, Telephone and Web sales were about 6% better than plan.almost 100% better than last year and 66% ahead of plan.

The Restaurant Division was above plan by $1944,000 and almost $12290,000 better than last year and customer count is up 38% from last year.

ACTION & DISCUSSION ITEMS

EXECUTIVE SESSION

Services and Enterprises FY 08/09 Budget and Five-Year Forecast

Mr. Recht presented this action item to the Board of Directors and asked they approve the Services and Enterprises FY 08/09 Budget and Five-Year Forecast.

As there were no objections or abstentions, this motion was approved by unanimous consent.

Communications Board FY 08/09 Budget

Mr. Recht presented this action item to the Board of Directors and asked they approve the Communications Board FY 08/09 Budget.

As there were no objections or abstentions, this motion was approved by unanimous consent.

Graduate Students Association FY 08/09 Budget

Mr. Recht presented this action item to the Board of Directors and asked they review and approve the Graduate Students Association FY 08/09 Budget.

As there were no objections or abstentions, this motion was approved by unanimous consent.

Undergraduate Students Association FY 08/09 Budget

Mr. Recht presented this action item to the Board of Directors and asked they review and approve the Undergraduate Students Association FY 08/09 Budget.

As there were no objections or abstentions, this motion was approved by unanimous consent.

Cooperage Video Wall Capital Expenditure

Ms. Avineri presented this action item to the Board of Directors and asked they approve an additional $50,000 for the purchase of four-70” DLP video wall.

As there were no objections or abstentions, this motion was approved by unanimous consent.

Restroom Hand Dryers in Ackerman Union

Ms. Avineri presented this action item to the Board of Directors and asked they approve that the Ackerman restrooms will be retrofitted with hand dryers.

As there were no objections or abstentions, this motion was approved by unanimous consent.

EXECUTIVE SESSION

Mr. Fox Lowenstein moved, seconded by Mr. Recht, that the Associated Students UCLA Board of Directors move enter into Executive Session. As there wereThere being no objections,, Executive Session was entered at 1:48 p.m.

T

the Board entered into eExecutive Ssession at 1:2748 p.m.

Mr. Fox Lowenstein moved, seconded by Mr. Galbraiths. Schlarmann, that the Associated Students UCLA Board of Directors to exitadjourn Executive Session. As t There werebeing no objections, Executive Session was adjourned at 2:42 p.m.

the Board left executive session at 2:4201 p.m.

Mr. FoxMs. York movedmade a motion, seconded by Ms. YorkMr. Recht that the Associated Students UCLA Board of Directors approve all actions taken in Executive Session. Mr. Karlik Rogel called for consent. , and Tthere being no objections, all actionsthe motion was were approved by unanimous consent.

AADJOURNMENT

Mr. Fox Recht moved, seconded by Ms. York, that the Associated Students UCLA Board of Directors adjourn the May 23rdJuly 25, 20098, Regular Meeting. Mr. Karlik Rogel called for consent, and there being no objections, the meeting was adjourned at 2:0343 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 Representativee

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

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

Google Online Preview   Download