ASSOCIATED STUDENTS UCLA
BOARD OF DIRECTORS
Finance Committee Meeting
October 24, 2003 9:00 a.m. Kerckhoff Hall 152
PRESENT:
Richard Delia (ASUCLA Finance Director), Patricia Eastman (ASUCLA
Executive Director), Doug Hecox, Dave Lowenstein, Julie Orf (Chair), and
Jennifer Willis-Graves (Recording Secretary)
ABSENT:
Emmanuel Martìnez, Yousef Tajsar
CALL TO ORDER
This meeting was called to order at 9:12 AM.
APPROVAL OF MINUTES FROM FINANCE COMMITTEE MEETING
HELD ON SEPTEMBER 19, 2003
As there were no changes the minutes were approved with three assenting votes, no dissenting
votes and two abstentions. (As Mr. Martìnez, and Mr. Tajsar were not present.)
EXECUTIVE DIRECTOR’S REPORT
Leased Operations: Status Review
Ms. Eastman deferred to Mr. Delia to provide updates on pending Leased Operations. Mr. Delia
reported that the student groups currently occupying Kerckhoff Hall suites 124 and 160-168 will
remain in this space until December, as their offices in the newly renovated Men’s Gym are not
yet complete. He explained that from a financial perspective, this development is advantageous
to the Association, as the FY 03/04 Budget provided for a one month vacancy between tenants in
this space, and now as a result of the student groups’ delayed departure, unbudgeted rent will be
received.
Ms. Eastman explained that as soon as the current tenants vacate these spaces, the Environmental
Coalition (currently located adjacent to Kerckhoff Hall 124) will move to a new location. CTS
(Campus Technology Services) will take possession of this space (with minor modifications),
plus space vacated by the staging tenants, and the Campus Events Center will occupy Kerckhoff
Hall suites 160-168. She indicated that Management is pleased with this plan, as it will bring
important student services into the building.
Mr. Delia reported that contract negotiations continue with Sprint, LLC. for the proposed retail
space on the A-Level of the Ackerman Union. He explained that Sprint’s legal counsel returned
comments on the University’s Standard Lease Form, and that University counsel was in the
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October 24, 2003
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process of preparing a response. He assured the Committee that Sprint does intend to lease this
space, and the current issues are purely administrative in nature.
With regard to the new plasma screen media system (University Media), Mr. Delia reported that
UCLA Real Estate is currently drafting a license agreement modeled after an agreement
developed for a similar service at UC Davis. He explained that once this agreement is
completed, it will be sent to the UC Office of the President for approval and then returned to
UCLA Real Estate before submission to University Media. Again, he assured the Committee that
this is simply an unavoidable administrative process.
Responding to an inquiry, Mr. Delia noted that Management has not received feedback from Hair
On Campus, the salon located on the A-Level of the Ackerman Union as to their intent to expand
their operation into additional space near the Viewpoint Lounge. Ms. Eastman explained that
this space is currently utilized for storage, and Management would not object to continuing to do
so should the salon choose not to use the space.
FINANCE DIRECTOR’S REPORT
September Financial Statement
Mr. Delia noted that all Committee members were present at the Joint Operating Committee
meeting that took place on Friday October 17, 2003, and that the September Financial Statement
was discussed in detail at that time. As such, the Committee opted to bypass this agenda item
and proceed directly to a discussion of October preliminary sales.
October Preliminary Sales
Mr. Delia reported that Store sales thus far for the month of October exceeded plan by $440,000,
due primarily to the Computer Store, which was $454,000 better than plan. He noted also that
concessions sales at the football game on October 18, 2003 generated more than $50,000, and
that apparel sales exceeded plan by $15,000, both of which also contributed to this positive
variance.
A brief discussion followed regarding forecasting and sales performance in the Computer Store.
Management explained that the model in this area has been revised over the last several years to
focus primarily on Apple products, and to carry significantly less inventory. It was noted that
despite the improved performance of the Computer Store over the last two fiscal years, analysis
should be performed before forecasting accordingly, as sales in the Computer Store are highly
susceptible to external commercial technology market forces.
Mr. Delia reported that sales in The Market exceeded plan by $11,000. He explained that a
portion of this positive variance resulted from beverage sales as the weather was unseasonably
warm, but also that a significant portion of this increased traffic in this area resulted from
customers who opted to shop for grocery items at The Market instead of crossing supermarket
labor strike picket lines.
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October 24, 2003
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Mr. Delia noted that sales in the Health Sciences Store were down to plan by $57,000, but
reminded the Committee that this is the result of timing, as sales were ahead of plan at this time
last month. Also, he reported that sales in the Universal CityWalk Spirit Store remain off plan,
explaining that although there was a small increase in sales resulting from one Score Big sales
promotion, sales after this event continued to slump.
Ms. Eastman noted while examining the month to date gross margin analysis that the effect of
Score Big promotions is apparent, as several areas are meeting plan in terms of top line sales, but
not in terms of Gross Margin. Mr. Delia explained however that the Store is projected to exceed
gross margin plan by $13,000.
Mr. Delia reported that sales in the Restaurants Division exceeded plan by $8,500, and that
customer counts in many operations were higher than anticipated. He noted that catering
exceeded plan by $5,000, and concessions exceeded plan by $14,000. Although sales in the
outlying operations suffered slightly (North Campus was $6,000 off plan and the Bombshelter
was $4,000 off plan), sales in the Cooperage, Tropix and Campus Corner exceeded plan by
$4,000, $3,000 $7,000 respectively.
ACTION ITEMS
Mr. Hecox moved, and Ms. Orf seconded that in light of the improved financial performance of
the Association whereby year to date through September 2003 net income has exceeded plan by
$66,000, the Finance Committee recommends that the May 30, 2003 motion for a Financial
Viability Fee Referendum for $24 per year remain tabled. This motion was approved with three
assenting votes, no dissenting votes and two abstentions. (As Mr. Martìnez, and Mr. Tajsar were
not present.)
The Finance Committee Meeting adjourned at 10:20 AM.
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