ASSOCIATED STUDENTS UCLA
BOARD OF DIRECTORS
Regular Meeting
August 24, 2007
12:00 p.m.
Kerckhoff Hall Staterooms
PRESENT:
Netta Avineri, Matt Bukirin, Jared Fox, Gary Galbraith,
Andy Green, Monroe Gorden, Melanie Ho, Dave Karlik,
Susan Klaisner (recorder), Dave Lowenstein, Hoi Ning Ngai,
Christopher Recht, Jesse Rogel, Erika Schlarmann, Jason
Sorger, Bob Williams, Amanda York
GUESTS:
Cindy Bolton (ASUCLA Food Service Director), Rich Delia
(ASUCLA Chief Financial Officer), Jan Griwach-Ronci
(ASUCLA Director of Supply Division), Patrick Healey
(ASUCLA Director of Apparel), Jerry Mann (ASUCLA
Student Support Services Director/Business Analyst), Janina
Montero (Vice Chancellor), Edward Truong (Daily Bruin
Reporter), Sonia Wilmarth (Academic Planning & Budget),
Neil Yamaguchi (ASUCLA Director of Academic Support),
CALL TO ORDER
Mr. Fox called the meeting to order at 12:01 p.m.
ADOPTION OF CONSENT CALENDAR & ORDERS OF THE DAY
Ms. Ngai moved, seconded by Mr. Karlik that the Associated Students UCLA Board of
Directors accept the Orders of the Day. Mr. Fox called for consent. There being no
objections, the agenda was approved by unanimous consent.
MINUTES
Ms. York moved, seconded by Mr. Karlik, that the Associated Students UCLA Board of
Directors approve the Minutes of the July 27, 2007 Regular meeting. Mr. Fox called for
consent. There being no objections, the minutes were approved by unanimous consent.
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EXECUTIVE DIRECTOR’S REPORT
Mr. Williams offered the Executive Director’s Report to the Board.
Information Items:
A. Financial/Operational
Financial Overview
Mr. Williams announced that July’s overall financial performance was strong with
significant positive results in the Store. The Restaurants Division reported strong results
in gross income and exceeded its contribution target significantly despite additional labor
and maintenance costs. Sales continued to be strong throughout the division, with the
exception of the Cooperage, which lost more customers to the Greenhouse than expected.
The Services Division fell slightly short of its target due to the increased payments
accrual to the Department of Intercollegiate Athletics under our royalty sharing
agreement with them and a negative variance in gross income from Informal
Photography. The Student Union Division was on plan, overcoming additional career
labor expenditures resulting from the new Director position. Administrative & Support
Services continued its positive trend but showed significant negative results overall due
to the annual pay-out of the professional employee Incentive Compensation Program,
which is not budgeted, per the Board-approved formula.
Preliminary 2006-2007 Results – Overall financial results for fiscal year 2006-2007 were
among the strongest of any year in ASUCLA history. The Store saw an increase of $3.5
million in sales as compared to last year. Textbook prices were lowered significantly
during the year, and many new products and promotions were added to the Store
inventory. BearWear, the Computer Store, Hill Top Shop, Textbooks, and the Bookzone
exceeded plan significantly.
The Restaurant Division reported one of its most successful financial years, exceeding its
annual contribution budget by more than $400,000 and last year’s results by more than
$500,000. Significant positive variances were seen in Wetzel’s, Kerckhoff Coffee House,
Northern Lights, Jamba Juice and Catering. The Greenhouse exceeded its budgeted
contribution by $12,015 despite being open for only a portion of the year.
The Services Division also reported a very strong year led by excellent results in
Trademarks and Licensing, despite the increased payments resulting from a new
Department of Intercollegiate Athletics royalty sharing agreement. Mr. Williams wished
to highlight the success of the Post Office which has become a profitable operation run
by ASUCLA. Other areas reported strong cost control efforts including: Financial
Planning, HR/Payroll, Computing and Communications, IS Systems Development and
the Maintenance and Facilities Division.
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Sales results for August month-to-date are similar to July. There is a negative variance in
the Computer Store resulting from very aggressive sales targets. The Health Sciences
Store is off plan due to a timing issue related to the sales of dental kits. The Restaurants
Division continues to show strong performance in most areas with positive variances in
both customer count and sales versus budget and last year. Catering is slightly off plan
month-to-date, however, management is confident that this results from timing and does
not represent a trend.
Mr. Williams noted that August sales to-date appear strong, and he expressed confidence
that month-end results will meet plan.
Champions Tennis - Final Tennis results show a slight decrease in total ASUCLA sales
versus last year but results were consistent the with the current plan.
Safety Training/Inspections – In July the Security/Loss Prevention Department conducted
safety inspections, which included the Executive Director’s Office, the restrooms, and
dining and common areas. Chet Cohen, Manager of ASUCLA Security & Loss
Prevention, along with Orlando Terrazas, the Safety Inspector with the University’s
Office of Insurance and Risk Management, conducted safety inspections of all ASUCLA
outlying retail locations: Health Sciences Store, Hilltop Shop, LuValle Commons Store,
and North Campus Shop.
In August, Mr. Cohen, Mr. Terrazas, and Josh Witt, the Food Safety inspector with the
University’s Department of Environmental Health and Safety, conducted safety
inspections of all ASUCLA outlying food service locations: Café Synapse, Bombshelter,
North Campus Student Center and LuValle Commons Restaurant.
No major issues were discovered during these efforts, but it was concluded that
improvements will be made to signage, storage procedures, and fire extinguishers. In
addition, the Association, with the aid of the Facilities Maintenance Department, will add
various projects in response to the inspections.
Nutritional Products – The Ackerman Market has added a line of nutritional products
including meal supplements and protein drinks. These items are located on the end cap of
the center isle and in the refrigerators, respectively. Signage will be added to enhance the
appeal of these items, and selections will be modified based on sales information.
Web Sales Award – The Association has received an award from Campus Hub for
achieving the highest web sales in the Large College Store category for 2006.
Web2Zone – We have been notified by Web2Zone that they will not be moving forward
with their intent to partner with the Association on the development of an on-line gaming
facility in Ackerman Union. Operating alternatives are currently under consideration.
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B. Marketing/Products/Programs
Fall Quarter Preparation
Costco in-store promo support
There will be flat screen TV running footage of UCLA and USC sport next to a
display of UCLA and USC branded products, and the Department of Intercollegiate
Athletics will sell vouchers for football tickets for home games (excluding Notre
Dame) that will include a coupon for percentage off BearWear, redeemable at the
Rose Bowl Concessions Tent or the UCLA Store.
Adidas Game Ball Delivery/UCLA Store in-store promotions.
Store customers may register to win:
1. Two Field Passes for the next game
2. The opportunity to throw the official Adidas game ball prior to kickoff,
which will be shown on video and matrix boards at the game
3. Two invitations to the Bruin Game Day Party with official sideline gear
4. One parking pass
Chicks Sporting Goods
There is a promotion at Chick’s where customers may enter to win 2 tickets to the
Notre Dame versus UCLA Rivalry Game 2007. This promotion will accompany the
Adidas product line.
Sports Chalet
There is a UCLA advertisement in the Sports Chalet catalog increasing both the
exposure and the number of UCLA product selections.
MarketLive Web Site Development – Plans to introduce the new version of UCLA Store
web site are slated for early September.
2007 ASUCLA Passport Books – The 2007 version of the ASUCLA Passport coupon
book that textbook customers receive upon purchase has been produced and distributed at
the Health Science Store. Distribution in Ackerman will commence during Welcome
Week.
Fall 2007 Bearwear Catalog – New catalogs have been mailed. Initial responses from
both venders and customers have been very positive.
Food Management Magazine Award – The magazine has recognized the Greenhouse as a
winner in the Best Station/Unit Concept category.
C. Facilities/Capital Projects/Construction
Cooperage – This project is moving forward. Management plans to have the Taco Bell
area completed before the start of Fall Quarter, after which time the gaming and dining
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area will be addressed in stages. The Services Committee discussed the current plan to
proceed with construction throughout the year despite the potential interruptions to
Cooperage operations that may result.
Broad Arts Cafe – The Broad Arts project is moving forward, with an opening date
anticipated before the start of Fall Quarter.
South Campus Student Center – A revised budget of $15 million, not including food
service equipment and furniture, has been proposed for the South Campus Student
Center. The total project cost is estimated to be $16.5 million, and Mr. Williams stated he
felt this to be an essential project for the long-term status of ASUCLA and vital for South
Campus students, staff, and faculty. He indicated that the Board and its Committees will
need to carefully consider the pros and cons of this project and its importance to
ASUCLA before approving this increase in expenditure, which would require ASUCLA
to increase its capital contribution from $6.5 million budgeted to $8.5 million.
C. Campus Partnerships & Integration
Athletic Support – Mr. Williams stated that the Association supported the Athletics
Department at their Fall Football Scrimmage on Saturday August 18th at Drake Stadium
with both food and BearWear concessions.
Department of Intercollegiate Athletics Royalty Sharing – Mr. Rich Delia, Associated
Students UCLA Finance Director; Ms. Cindy Holmes Director of ASUCLA Trademarks
and Licensing; and Mr. Williams met with Dan Guerrero, Dave Secor, and Ross Bjork of
the Department of Athletics to discuss procedures related to new sponsorship and retail
licensing agreements.
Sustainability –
Mr. Roy Champawat presented examples of new recycling bins and demonstrated how
recyclables deposited therein can be separated accordingly.
Mr. Fox took a moment on behalf the Board to thank management and staff for an
exemplary year, and stated the positive efforts toward sustainability were an accurate
reflection of hard work and dedication and that are very much appreciated.
Mr. Fox asked if there were questions for Mr. Williams. Seeing none, he moved to
standing committee reports.
EXECUTIVE COMMITTEE REPORT
The Executive Committee met on August 6th and heard a version of the Executive
Director’s report. The Committee then discussed the possibility of briefing new board
members concerning ongoing sustainability issues and the Food Service Master plan.
Next the Executive Committee discussed whether or not to set-up an ad-hoc committee
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this coming year, and it was decided that, while this is not currently necessary, the
Executive Committee will continue to evaluate this during the upcoming months. The
Committee then discussed the establishment of a positive relationship with Chancellor
Block and management’s intent to invite him to a Board of Directors meeting in the Fall.
Finally the Committee approved the agenda for the August 24th Board of Directors
meeting.
FINANCE COMMITTEE REPORT
Mr. Recht reported that the Finance Committee met on August 17th and heard a version
of the Executive Director’s report. The Committee discussed the merits of increasing
ASUCLA’s financial commitment to the South Campus Student Center development
project from $6.5 million to $8.5 million. The Committee then discussed the merits of
converting the Former FedEx-Kinko’s space into a gameroom. There was concern about
the demand for a gameroom in such close proximity to the planned online gaming center,
however, management stressed that this plan would generate a modest profit while not
requiring a long-term lease with an outside company, which allows for a great deal of
flexibility in the use of this space in the future.
SERVICES COMMITTEE REPORT
Ms. Avineri reported that the Services Committee met on August 10th and heard a version
of the Executive Director’s report, followed by a report on the implementation of
sustainability measures in LuValle Commons. The committee also discussed the space in
Ackerman Union previously occupied by Fed Ex/Kinko’s and the possibility of moving
the gaming lounge into the space.
FINANCE DIRECTOR’S REPORT
Mr. Delia offered the Finance Director’s Report to the Board.
July Financial Statements
In July, Store sales were below plan by $80,000. Apparel was up $46,000, and the
Computer Store was off by $157,000 but was $219,000 better than last year. Year-to-date
the Computer Store was $1.3 million better than last year. The new text pricing program
effectively increased sales in the Academic Support area, which was better than plan by
$36,000 for July and $773,000 year to date. Mr. Delia noted also that the Bookzone was
$105,000 better year to date than last year. LuValle was off plan by $5,000 while the
Health Sciences Store and the Hilltop Shop continued their positive trend. Year-to-date
Mail Telephone and Web sales were $1.2 million against $1.1 million last year, which
represents a $120,000 positive variance to plan.
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Preliminary FY 06-07 Financial Results
Net income for the year was $2.302 million against a budget of $139,000 or $2.16 million
higher. Net income for the year equals 3% of gross income, which far exceeds our goal of
1%.
Net income from operations was $1.4 million against a budgeted loss of $341,000, which
is $1.74 million better. Net income from operations is also $263,000 or 23% higher than
last year’s $1,134,000. This year net income from operations is 1.8% of gross income
against last year’s 1.6%. Comparing last year to this year, two major items need to be
considered, although they almost offset one another (1) the Student Union fee ($260,000)
which last year was in Student Union Operations and (2) the Coke sponsorship funds
($239,000) which were in this year’s operations, but not last year’s.
In addition, our Contribution as a percentage of gross income was 15.3%, which was
better than budget of 13.9%, but lower than last year’s 15.8%. Some of the reasons for
this include (1) lower textbook pricing, (2) increased DIA revenue sharing for the Store
and (3) higher student wage rates due to the minimum wage increases ($.75 per hour
01/01/07 and $.50 per hour 07/01/07).
August Month–to-Date Preliminary Sales
Sales were off by $33,000 but above last year plan by $170,000. Apparel was up $7,500
and the Computer Store was off plan by $92,000, while Academic Support was off
$17,000. LuValle was above plan by $42,000 due to timing and Health Sciences was off
by $4,000 because their text sales were down.
Hilltop continued its positive trend and was above plan by $8,600 and $10,000 against
last year. Mail Telephone and Web was above plan by $16,000 and up $26,000 against
last year, a 30% increase over last year.
The Restaurant Division was $24,000 above plan. Greenhouse and the Cooperage
together were $36,000 higher when compared to last year. Catering and Concessions
were above plan by $28,000 in total.
ACTION & DISCUSSION ITEMS
Conversion of Former FedEx-Kinko’s Space to Gameroom
Mr. Recht and Ms. Avineri presented this action item to the Board of Directors and asked
that they approve the proposal to convert FedEx-Kinko’s space into a Gameroom. The
Finance Committee and the Services Committee approved similar motions at their
respective August meetings.
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EXECUTIVE SESSION
Mr. Lowenstein moved, seconded by Ms. Ngai, that the Associated Students UCLA
Board of Directors move into Executive Session.
The Board entered into Executive Session at 1:17 p.m.
Ms. Ngai moved, seconded by Mr. Recht that the Associated Students UCLA Board of
Directors approve all actions taken in Executive Session. Mr. Fox called for consent, and
there being no objections, all actions were approved by unanimous consent.
Mr. Ngai moved, seconded by Ms. York, to exit Executive Session at 1:36 p.m.
ADJOURNMENT
Mr. Karlik moved, seconded by Ms. Ngai, that the Associated Students UCLA Board of
Directors adjourn the August 24th Regular Meeting. Mr. Fox called for consent, and
there being no objections, the meeting was adjourned at 1:37 p.m.
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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
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