Approved: October 29, 2010
Draft: September 24, 2010
ASSOCIATED STUDENTS UCLA
BOARD OF DIRECTORS
Regular Meeting
September 24, 2010
12:00 p.m.
Kerckhoff Hall Staterooms
PRESENT: Christian Alfaro, Sandi Gillespie (Recorder), Abdallah Jadallah, Dave Lowenstein, Amy Liu, Hironao Okahana, Mark Reyes, Mikaela Saelua, Mike Soderberg, Michael Weismeyer, and Bob Williams
ABSENT: Mike Jedlicka
EARLY DEPARTURE: Karleen Giannitrapani, Pam Viele, and Dorothy Wiley
GUESTS: Andrew Alexah, UCLA Academic Planning and Budget
Cindy Bolton, ASUCLA Director of Food Operations
Robin Broudy-Johns, Store Operations Director
Roy Champawat, Student Union/Student Support Services 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, Director, Special Projects
CALL TO ORDER
Mr. Jadallah called the meeting to order at 12:04 p.m.
APPROVAL OF AGENDA
Mr. Jadallah called for consent to approve the Associated Students UCLA Board of Directors September 24, 2010, Regular Meeting Agenda. There being no objections, the motion was approved by unanimous consent
APPROVAL OF MINUTES
Mr. Jadallah called for consent to approve the Associated Students UCLA Board of Directors August 27, 2010, Regular Meeting Minutes. 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
1. August
August financial results continue to see good trends especially in the Store. Store sales in August are up compared to both budget and last year. Bearwear and the Computer Store both had strong performances in August.
Food Service results were close to plan but not as strong as management would like. While most units were very close to or above plan, North Campus results continue to be a concern. Sales have dropped considerably from last summer leading to a substantial shortfall in contribution. Catering results continue to be very positive exceeding both budget and last year’s results.
The Services Division is behind plan primarily due to a timing issue on licensing income. These results are expected to balance out in future months. The Student Union Division is off to a good start in 2010-2011. Results for the month reflect a positive contribution of over $10,000 primarily due to added event income. A&SS had a small positive variance and these results along with good results in Maintenance, Utilities, and Interest Income led to a strong opening month.
It should be noted that August represents the last month with the furloughs, which led to positive variances in labor each month last year.
2. September
September sales trends continue to be positive in the Store although several areas that have positive variances are timing issues and will balance out later. For example, dental kit sales are ahead of plan but this is timing and sales will fall back in line. The greatest positive variance is in the Computer Store which is having a much stronger summer than last year and is well ahead of plan. Food Sales results during the second half of the summer are not as strong.
3. Welcome Week Support
Welcome Week activities have been well received. The Enormous Activities Fair was jammed in its new Royce Quad location. The Association provided free food samples by the flagpole and had a Coolzone and Computer Store booth. Besides the support of all Bruin Bash activities, the Association held an “After Hours Sale” on September 21. During the after hours sale the computer store offered laser engraving and there were three food vendors including Muscle Milk.
The Association also had its Employment Resource Fair on September 22 where student jobs where highlighted as well as the organizational core values of Building towards the Future and Target Zero Waste.
4. Graduate Student Outreach
Several of the ideas and plans developed by last year’s ad hoc committee have been implemented this year. ASUCLA was included in the Graduate Division Orientation Handbook and was involved in nine academic departments’s orientations. The Association also developed a modified Graduate Student Orientation Brochure.
The outreach to departments included: Sociology, Computer Science, Education, Electrical Engineering, Evolutionary Biology, TA Training and Orientation, Asian Languages and Cultures, Medical School, Public Health—Biostatics, and Nursing. In all about 1100 brochures were distributed through the departments.
ASUCLA continues to support the GSA Orientation with the following services:
1. Spoke to the volunteers about ASUCLA at their training
2. Donation of breakfast and lunch catering
3. Coffeehouse promotion including free cookies and coffee
4. Featured the core value BUILDING TOWARDS THE FUTURE with pictures of COS Student Center
5. ASUCLA Benefits U sign-ups and Textbooks/ Computer Store tabling
6. Distributed approximately 1300 brochures
It was an effort to connect to graduate students with things that might especially resonate with them which is why the Association focused on COS student center and Coffeehouses.
5. Football Concession
The large concession tent/store was set up at the Rosebowl for the first two home games. The tent is in a new location this year and management was concerned that people will have trouble finding it. To help, several new signage features were added to the store including a large balloon. Sales have tracked behind plan but stronger sales are expected as the football team begins to win games.
6. Computer Store Outreach
The Computer Store has been at several events around campus including; Extension Open House, Weyburn Terrace Resource Fair, Residence Halls move in weekend events, and at the Enormous Activities Fair.
B. Operational Updates
1. Textbook Initiatives
Several textbook initiatives are planned for fall quarter many of which were highlighted in an ASUCLA Benefits U email. Textbooks can now be purchased on their BAR account, and there are approximately 100 additional rental titles in Ackerman and 25 at both LuValle and the Health Science Store. The e-book selections have been expanded and there will be another Textbook Loyalty Raffle this year for a trip to San Francisco.
.
2. LuValle Food Concept
Pacific Rice and Noodle Traders in LuValle Commons will be updated and modified. The new concept will be called Jimmy’s Kitchen – Tastes from around the world. It will continue to be primarily a chicken, rice and salad concept (with a vegetarian tofu option) but will have new and exciting flavors from around the world to expand the variety.
C. Marketing Initiatives
1. General Marketing
Mr. Williams briefly listed the current general marketing strategies including:
Bearwear-Spirit Contest, Bruins Bonus Time, Russell sponsored direct mailer
Computer Store- Apple and Printer Promotions
BookZone-Monthly Author Series, Poster Sale, Birthday Series
Clinique-Bonus Kit
Campus Photo Studio-Senior Portraits
UCLA Store-Sorority Flowers Online, Halloween Monster Sale
2. ASUCLA Benefits U
The ASUCLA Benefits U data base is being cleaned up which includes moving people who have graduated onto the Bearwear mailing list. Duplicate names or corrupted addresses will be removed.
D. Facilities/Capitals/Construction
1. Court of Sciences Student Center
Construction is ongoing on the infrastructure. Mr. Williams and Ms. Bolton met with the architects this week to look at the materials for the food areas and preliminary furniture selections.
2. Global Viewpoint Lounge
The project is complete with the exception of the furniture, signage, and press release.
3. RX Remodel
Construction should be finished this week.
4. Kinross Grad Operation
Management is developing a service proposal for the Graduate Student Kinross project. Next month it will be brought to the committees for approval.
5. Pauley Pavilion
Management continues to work with CRA and DIA to develop short term food and apparel concessions service for this year. In addition, plans for the concessions stand configuration, products, and 3rd party partnerships for the new Pauley Pavilion operation are currently being developed.
6. North Campus
The Board needs to begin discussions regarding a North Campus project which is the last of the specific commitments made as part of the S.A.F.E referendum. Managment is planning to have some preliminary discussions with the campus architects to get their thoughts on various project scopes. Management will be having preliminary discussions with the appropriate committees in the next few months.
E. Campus Partnership and Integration
1. Society of Postdoc Scholars
In partnership with UCLA Graduate Division, and the Society of Postdoc Scholars, UCLA Coffeehouses will provide a free medium coffee to UCLA Postdocs (ASUCLA provided coupons at a discount while UCLA Grad Division is paying for the coffees). The Association is also donating a sign.
F. Board of Directors Priorities
1. SUMPI-Student Union
The SUMPI group had its first meeting and is developing goals and a timeline for this year’s process. The Committee is planning to move quickly to be on track to be coordinated with the campus space process. The Committee is also considering some site visits to some larger and newer student unions.
G. Academic Materials
1. Academic Initiatives
In addition to the information in the main report, management also met with a group of campus officials regarding the current status of university efforts and projects in the academic materials area. The meeting was very productive and is a great foundation on which some solid working relationships and strategies can be built.
H. Brand Identity and Messaging
1. Brand Messaging
The EMG group has been having preliminary discussion regarding our current branding efforts positives and negatives and looking at the approaches on other campuses. The brand development team will be meeting in October to continue the work they started last year regarding increasing the visibility of the core values of ASUCLA at the point of purchase. The marketing team is focusing on the use of the Greater Good core value.
I. Campus Outreach
1. Outreach Committee
The Outreach Committee Chair has met with management and scheduled the first meeting which will take place before the Board meeting.
J. Social Responsibility
1. Sustainability Initiatives
TGIF funded a program to promote the use of library mugs. The Association is calling it “Fill up for a Buck.” During the month of October, customers can get a library mug or soda refill for .99 cents in ASUCLA Coffeehouses and Restaurants.
K. Product & Service Innovations
1. LuValle
The Board lunch provided today is an example of the new concept at LuValle.
2. LCD Projectors
The ceiling-mounted LCD projectors are being installed in most of the meeting rooms. Viewpoint Conference room is complete. AU 2408 will be the next meeting room modified.
3. Greek Product
The Greek products are now being sold in the Fasttrack areas. Products and signage will be added as the offerings are expanded.
L. Miscellaneous
Mr. Williams explained that the Festival Books will not be returning to UCLA and it will be a loss of approximately $100,000 to the Association.
Ms. Liu asked what impact on the UCLA Store will have when Target opens in Westwood. Mr. Williams explained that it mManagement will begin to do some analysis to determine what type of impact it will have on the Store.
. EXECUTIVE COMMITTEE REPORT
Mr. Weismeyer stated that the Committee met on September 16 and discussed the Stipend Policy, Student Space Needs Committee, and set the agenda for today’s Board meeting.
FINANCE COMMITTEE REPORT
Mr. Reyes stated that the Committee met on September 16 and heard a presentation from the external auditors as well as a Executive Director and Finance Director’s report.
SERVICES COMMITTEE REPORT
Ms. Liu explained that the Committee met on September 10 and heard an Executive Director’s Report and held an Executive Session.
PERSONNEL COMMITTEE REPORT
Mr. Okahana stated that he will give his report in Executive Session.
FINANCE DIRECTOR’S REPORT
August Financial Statements
Mr. Delia stated that the Store had a great month with gross incomemargin $293,000 (7.8%) better than plan and 7.3% better than last year. Most of the positive variance was from the Computer Store and Bearwear. The Restaurants were negative to plan by $45,000 in gross incomemargin due to the slow sales in North Campus. Services Division was $33,000 negative to plan; however, this is a licensing timing issue that should reverse itself over the next few months. The Student Union was better by $20,000 and $25,000 better than last year. Overall, the Association was better by $235,000 in gross incomemargin in August.
Wages and Benefits were negative to plan by $1,000 in August and $42,000 better than last year due to the furlough program. Other Controllables were better by $ $45,000. Due to their positive sales and controlling costs the Store’s contribution was positive by $35,000 and $90,000 better than last year.
The Restaurant mitigated their sales loss by positive $14,000 in Catering sales, lowering their negative impact to $11,000 in terms of contribution. The Student Union had positive $10,000 in contributiongross margin due to new external clients and increase rentals. Allocated expenses were positive by $4732,000 due to lower career wages, lower utilities, and depreciation.
Net income for operations was better by $47,000 and total net income including Interest Income was $62,000 better than plan and $5,000 better than last year.
Cash Flow was better by $291,000, close to last year, and there wasis a $10.4 million ending cash book balancein the bank . Cash Reserve wasis above the required amount by $1.2 million.
Past due Accounts Receivables are holding at 3% of the total and inventory turns are at 4.9.
September Month-to-Date Preliminary Sales
Current month-to-date sales show a positive variance of $1,152,184; however, there are many significant timing issues. The $63,000 positive variance in apparel will remain as well the $609,000 positive variance in the Computer Store. New Text is variable and could change in the next week or so. Used text is $164,000 due to the lack of used book inventory.
The Health Sciences Store shows a positive variance of $495,000 of which $488,000 is dental kits and is a timing issue.
Gross Margin should be at about shows a positive variance of $157,000 based on these sales results; however, if the dental kits and text books number are taken out it will be a much smaller number.
The Restaurants show a negative variance of $19,000. Catering has a positive variance of $29,000 and the Cooperage is positive by $4,500.
EXECUTIVE SESSION