Approved: October 31, 2008
ASSOCIATED STUDENTS UCLA
BOARD OF DIRECTORS
Regular Meeting
September 26, 2008
12:00 p.m.
Kerckhoff Hall Staterooms
PRESENT: Netta Avineri; Cinthia Flores; Jared Fox; Gary Galbraith; Monroe Gorden; Michael Jedlicka; Dave Lowenstein; Hoi Ning Ngai (outgoing Graduate Representative); Christopher Recht; Jesse Rogel (incoming Chair); Bernice Shaw; Mike Soderberg; Shelley Sorger; Bob Williams; Jennifer Willis-Graves (Recorder); Amanda York
GUESTS: Cindy Bolton (ASUCLA Director of Food Operations); Ali Bonyadloo (ASUCLA Assistant Director, Restaurants Division Special Events); Rich Delia (ASUCLA Chief Financial Officer/Finance Director); Jan Griwach-Ronci (UCLA Store General Manager/Director of Computers/Supply Division & Hilltop Shop); Patrick Healey (UCLA Store General Manager/Director, Apparel/Accessories/LuValle Commons/Health Sciences Store), Karen Noh (ASUCLA Director, Special Projects), Ben Thaler (Daily Bruin Reporter).
CALL TO ORDER
Mr. Rogel called the meeting to order at 12:04 p.m.
ADOPTION OF CONSENT CALENDAR & ORDERS OF THE DAY
Mr. Recht moved and Ms. Flores seconded that the Associated Students UCLA Board of Directors accept the Orders of the Day. Mr. Rogel called for consent. There being no objections, the motion was approved by unanimous consent.
APPROVAL OF MINUTES FROM AUGUST 29, 2008
Mr. Jedlicka noted that the outgoing Board of Directors Chair was listed incorrectly on the above referenced minutes. Mr. Recht moved, seconded by Ms. Flores that the Associated Students UCLA Board of Directors approve the minutes of the August 29, 2008, Regular Meeting with the stipulated change. Mr. Rogel called for consent. There being no objections, the motion was approved by unanimous consent.
EXECUTIVE DIRECTOR’S REPORT
Mr. Williams offered the Executive Director’s Report to the Board.
A. Financial/Operational Items
Financial Overview
August Financial Results. August financial results were $105,000 ahead of plan in terms of net income primarily as the result of strong gross income results in the Store and Restaurants divisions. This effect was bolstered by a strong positive variance in contribution from the Store and positive budget variances in Administrative & Support Services and depreciation.
Mr. Williams offered commendation to ASUCLA management and staff for the speed and efficiency with which the new gift shop/card store on the B-level of Ackerman Union was implemented and for the success of Welcome Week activities.
September Sales. Month to date sales results suggested a general slowing across all divisions. All Store divisions showed negative variances to plan and the same period in the prior year and while some restaurant operations were performing well, management anticipated that timing of construction and other external issues would negatively impact sales in future months. Mr. Williams reported that Textbook department management has expressed concern over the impact that the recent price adjustment might have on gross income from that area and Mr. Williams cautioned the Board to expect negative variances going forward.
Post Office. Mr. Williams reported that a second postal metering machine had been installed and was fully operational in the post office located in Ackerman Union. Management anticipated that this would significantly streamline processing and reduce waiting time.
A short discussion followed regarding the logistical aspects of assembly and dissemination of Dental Kits sold in the Health Sciences Store.
B. Marketing/Products/Programs
Textbook Programs
Textbook Marketing. Mr. Williams reported that the following efforts had been made to promote the recent $650,000 textbook price reduction, textbook rental, guaranteed buyback, and price matching programs:
§ Outreach to orientation students and counselors
§ Presence on University Extension website
§ Footer message on Textbooks website
§ Materials provided in New Senate Faculty Orientation
§ SAO outreach email
§ Direct contact with housing Resident Advisors
§ Letter sent from Board to Vice Chancellors and Vice Provosts
§ Memo distributed from Acting Executive Vice Chancellor Scott Waugh to Faculty
§ Presence during Welcome Week
§ Traditional signs and Daily Bruin advertisements
§ A-level signs, standees and floor decals
§ Large sign over Store entrance
§ External banner on Ackerman Union
Benefits U
The most recent Benefits U promotional email was received by more than 20,000 individuals, with the next scheduled for distribution the Monday following this meeting. In addition to coupons for the Store and restaurants, this message promoted the addition of the NFL Network and other sports packages to the television line up in the Cooperage. Enrollment efforts continued during Welcome Week events, the Graduate Student Orientation, the Enormous Activities Fair, and on A-level during textbook rush.
Core Values Campaign.
Management intended to launch the annual Core Values Campaign during the fourth or fifth week of Fall Quarter. This program includes Core Values logoed bags, coffee cup sleeves, bookmarks and signage as well as logoed Store staff ID tags and floor decals.
Score Big Sales
Mr. Williams noted that given the less-than-optimal performance of UCLA Football this year there have been no Score Big Sales promotions in the Ackerman store. He posited that this may have a negative impact on sales of Bearwear for the quarter.
C. Facilities/Capital Projects/Construction
Cooperage.
Mr. Williams reported that work on the Cooperage renovation project had progressed in several areas and Ms. Bolton provided a detailed status report. At the time of this meeting:
§ The new Bruin Buzz coffee bar area was operational;
§ Flooring in the main hallway had been installed from the fire doors at the north end to the register area;
§ New lighting had been installed throughout; and
§ The television cabinet was completed and installation of the media wall was scheduled for the week following this meeting.
The lease with Carl’s Jr. was in the final stages of development and management anticipated that demolition/construction in that area would begin towards the end of October.
Curbside at Avenue A.
At the time of this meeting the entrance to this area had been completed and final design work and equipment purchases for interior areas were in progress.
South Campus Student Center.
Mr. Williams reported that the South Campus Student center working group had been meeting twice monthly and recent topics included landscaping and operational details such as trash removal, restrooms, and mechanical infrastructure. At the time of this meeting management had received a strong response to the general request for proposals for restaurant operators and had hosted site visits for several prospective vendors, many of whom would be willing to operate in the smallest of available spaces. Management will discuss interim service options with the chosen vendors so that these venues might operate during construction.
1st Floor Ackerman Union.
At the time of this meeting management had received one proposal in response to its request for proposals from casual dining operators. Mr. Williams reported that Sodexo, the company that operates the Silo Café at UC Davis, withdrew its proposal the week prior to this meeting citing concerns regarding the initial capital investment required to establish this operation. Management intended to expand the scope of this search by sending the request for proposals to additional prospects.
3rd Floor Lounge
Mr. Williams reported that, at the time of this meeting, the project to convert the Ackerman 3rd Floor Lounge into a meeting room was on hold so that construction monies and resources might be utilized elsewhere.
D. Campus Partnerships & Integration
Welcome Week
Mr. Williams reported that undergraduate Welcome Week events were well attended and that there were strong responses to the ASUCLA presence during the Enormous Activities Fair. Programs included:
§ ASUCLA Benefits U Cool Zone;
§ A Taste of UCLA Restaurants,
§ Apple products booth; and
§ Bearwear model both.
In addition, the Association hosted the annual After Hours Sale-A- Bration event, Student Job Fair and Price Wheel.
Digitization
The first phase of the recent USAC Digitization project was completed and results were presented to USAC at its September meeting. Initial results seem positive and management was testing processes and procedures with an eye towards the adoption of this program in Services and Enterprises as well.
E. Organizational Priorities
Sustainability
New hand dryers were installed in the Ackerman Union. Mr. Williams reported that these dryers are quieter, more effective and more physically attractive than those that were installed in the LuValle Commons earlier in 2008. At the time of this meeting the Store was in the process of switching to 100% recycled content bags, and the ‘green’ section of the Store featuring environmentally sustainable products was open and operational.
Employee Investment
Mr. Williams reported that Diversity Training for all ASUCLA managers continued with the next installment “Emotional Intelligence”. A short discussion followed regarding the nature of this curriculum and its connection to UCLA Human Resources.
ASUCLA Independence
Prior to this meeting Mr. Williams met with Vice Chancellors Steve Olsen and Janina Montero to discuss ongoing concerns regarding the mandatory relationship between ASUCLA and UCLA Facilities. Mr. Williams indicated that he would continue to discuss this matter going forward and that the current budget cost over-runs in the Cooperage would play a major role in his argument for greater autonomy visa vie the selection of qualified construction and skilled labor personnel for capital projects.
Mr. Rogel asked if there were questions for Mr. Williams and seeing none, he moved to Standing Committee reports.
EXECUTIVE COMMITTEE REPORT
Ms. Avineri reported that the Executive Committee met on September 18, 2008, at 4:15 p.m. The committee heard a version of the Executive Director’s report and discussed the status of the Ackerman 3rd Floor Lounge and International News Lounge projects as well as the conversion of the former Shoe City space and various attendance issues. Finally, the committee approved the agenda for this Board of Directors meeting. The Executive Committee adjourned at 6:00 p.m.
FINANCE COMMITTEE REPORT
Ms. Sorger reported that the Finance Committee met on September 22, 2008, at 2:00 p.m. and heard a version of the Executive Director’s report and the Finance Director’s report as well as a proposal from Elaine Reodica, USAC Financial Supports commissioner regarding the Undergraduate Textbook Scholarship Initiative. A decision was tabled until the committee’s next meeting. The committee also held an executive session discussion related to leased operations. This committee meeting adjourned at 3:12 p.m.
SERVICES COMMITTEE REPORT
Ms. York reported that the Services Committee met on September 12, 2008, at 12:00 p.m. and heard a version of the Executive Director’s report. The committee then heard a proposal from the UCLA Blood and Platelet Center regarding the proposed occupancy of the space in Ackerman Union formerly occupied by STA Travel. The committee also heard the aforementioned Undergraduate Textbook Scholarship Initiative proposal from Ms. Reodica and formally forwarded that item for Board of Directors action at this meeting. The committee meeting ended with a sustainability report from Mr. Roy Champawat, ASUCLA Student Union Director. This committee meeting adjourned at 2:04 p.m.
FINANCE DIRECTOR’S REPORT
August Financial Statements
Mr. Delia reported that the Association realized a net loss of $165,000 in August however this result was $105,000 better than planned.
In terms of gross income, both the Store and Restaurants divisions exceeded plan (by $30,000 and $34,000 respectively), while the Services Division was within $1,000 of plan and the Student Union Division was $10,000 off plan.
Positive results in the Store can be attributed to:
§ increased income in Graduation Etc. generated by increased rentals of Faculty Regalia - $14,000 ahead of plan;
§ strong sales in the Computer Store related to promotional offerings - $216,000 ahead of plan; and
§ timing of orders in the Academic Publishing Service - $32,000 ahead of plan.
Together these results served to offset the impact of several negative variances in:
§ Used Text, which was $25,000 off plan due to the limited availability of used titles;
§ Bookzone, which was $10,000 off plan due to decreased sales to the Library Division; and
§ Health Sciences Store, which was $198,000 off plan due to timing of the sales of dental kits.
The positive budget variance in the Restaurants Division can be attributed to timing of construction related closures in the Cooperage, which was $26,000 ahead of plan; and multiple large party events and back-to-school receptions covered by Catering, which was $24,000 ahead of plan. These results served to offset a negative variance of $23,000 in Concessions that resulted from limited offerings during the annual Countrywide Tennis Tournament.
In the Services Division, a negative variance in domestic licensing income resulting from downturns in the economy was offset by a positive variance in international licensing income resulting from an unexpected payment from a Scandinavian licensee.
The negative variance in gross income from the Student Union Division can be attributed to delays in the construction of the Cooperage which negatively impacted recreation and games income from online gaming operations.
These results, when combined with positive variances in controllable expenses from all divisions resulted in a $571,000 contribution for the month, which was $32,000 better than planned.
The Store was $36,000 ahead of plan, the Services and Student Union Divisions were each $3,000 ahead of plan, but the Restaurants Division was $10,000 off plan as the result of increased wages and benefits, which were $31,000 greater than planed.
In terms of allocated expenses, the Administrative & Support Services Division was $28,000 better than plan, primarily as the result of wage savings; depreciation was $29,000 better than plan due to timing of capital spending, and a $4,000 positive variance in the maintenance department served to offset a $4,000 negative variance in utilities.
When compared to the prior year, August results were better by $354,000 in terms of gross income; better by $138,000 in terms of gross margin; and better by $16,000 in terms of net income.
In August, the Association’s book balance was $19 million at month-end, which is a $3.6 million increase over the same period in the prior year. Of this balance, $13.5 million has been committed to capital projects, leaving $1,957,000 in surplus beyond the $618,000 Board-required cash reserve.
At month-end management estimated that spending on capital projects would be roughly $185,000 less than planned by year-end.
Past due accounts receivable rose slightly from $120,000 in July to just under $130,000 in August, primarily as the result of timing of payment of one substantial Computer Store invoice from the University Elementary School. Management was confident that this matter would be remedied before month-end in September.