ASSOCIATED STUDENTS UCLA
BOARD OF DIRECTORS
Regular Meeting
February 24, 2012
12:00 p.m.
Kerckhoff Hall Staterooms
PRESENT:
Jacob Ferrari, Karleen Giannitrapani, Mike Jedlicka, Amy Liu, Dave
Lowenstein, Hironao Okahana, Mark Reyes, Ryan Roberts, Mikaela Saelua,
Maggie Thornton, Pam Viele, Dorothy Wiley, and Bob Williams
ABSENT:
Paul Lanzillotti
EARLY
DEPARTURE:
(Mikaela Saelua)
MANAGEMENT:
Cindy Bolton, ASUCLA Director of Food Operations
Roy Champawat, ASUCLA Student Union/Student Support Services Director
Rich Delia, ASUCLA Chief Financial Officer/Finance Director
Jenna Willis-Graves, Finance Committee Recorder
Patrick Healey, UCLA Store General Manager/Director
Apparel/Accessories/LuValle Commons/Health Sciences Store;
Karen Noh, ASUCLA Special Projects Director
Jan Griwach-Ronci, UCLA Store General Manager/Director Computers/Supply
Division & Hill Top Shop
Lisa Perez, Director ASUCLA Marketing & Sales Promotion
Neil Yamaguchi, UCLA Store General Manager/Director of Academic Support
GUESTS:
Andrew Alexan, UCLA Academic Planning and Budget
Alexandra Barba, Precolumbian Aztec Society/ Community Programs Office
Moniul Chand, DISA
Emilio Hernandez, Chair, Campus Retention Committee/ American Indian
Student Association
Becca Holt, Daily Bruin
Kendra Sitney, Student Activities Commission Board of Governors
Noor Teebi, Muslim Students Association/ Community Programs Office
Tanesha Walker, African Student Union/ African Education Project/
Community Programs Office
CALL TO ORDER
Mr. Giannitrapani called the meeting to order at 12:08 p.m.
Approved March 16, 2012
Approved March 16, 2012
APPROVAL OF AGENDA
Ms. Saelua asked to add a short discussion of her recent meeting with representatives from the Student
Activities Center Board of Governors. Mr. Ferrari made a motion, seconded by Ms. Liu to approve the
Associated Students UCLA Board of Directors February 24, 2012, Regular Meeting Agenda as
amended. There being no objections, the motion was approved by unanimous consent.
APPROVAL OF MINUTES
Ms. Liu noted that in the minutes from the January 24, 2012 meeting Mr. Reyes, rather than Ms.
Giannitrapani adjourned the meeting. Ms. Giannitrapani called for consent to approve the Associated
Students January 24, 2012, Regular Meeting Minutes as amended. There being no objections, the
motion was approved by unanimous consent.
SACBOG CONERNS REGARDING CSSC
Ms. Saelua informed the Board of discussions that had taken place at the recent Student Activities
Center Board of Governors retreat regarding concerns about the potential return on investment on
student fee monies that were contributed to funding for the Court of Sciences Student Center. Given
that Mr. Williams was present at the initial meeting in 2006 when the Court of Sciences Student Center
was proposed to SACBOG, that board felt it appropriate to bring their concerns to the Services &
Enterprises Board of Directors.
Mr. Williams responded to remind those present that this project is rather unusual for the Association
as it is joint venture with the University. He explained that the budget for the project is managed by the
University Office of Capital Programs, and ASUCLA is only privy to funding aspects that directly
relate to ASUCLA expenses, and he noted that ASUCLA has already paid the majority of the $8.5
million it has allocated for the project.
Mr. Emilo Hernanez, Chair of the Campus Retention Committee addressed the Board, explaining that
primarily, SACBOG is interested in maintaining clear lines of communication with the Association to
ensure that all parties involved with the project are adhering to agreements made regarding the use of
student fee monies on this project, and to ensure that SACBOG remains involved in a collaborative
way with the project.
Mr. Williams clarified that the Associated Students was neither party to nor aware of any agreements
vis a vis the use of student fees, as those funds were part of the University’s contribution to the project.
He also cited several areas of collaboration, reminding those present that use of the new space for
student meetings and activities is still a priority and that SACBOG participated in the selection of food
offerings for the facility.
Both Mr. Williams and Ms. Giannitrapani thanked SACBOG representatives for attending and for their
efforts to ensure that the use of student fees was done in a fiscally responsible way.
Associated Students UCLA
Board of Directors
Minutes of the February 24, 2012 Regular Meeting
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Approved March 16, 2012
EXECUTIVE DIRECTOR’S REPORT
Mr. Williams offered the Executive Director’s Report to the Board.
A. Financial/Operational Items
1. January
Mr. Williams reported that January was a difficult month in several areas of the Association but
that net income results were better than management had projected earlier in the month, despite
roughly a $1 million shortfall in sales. While some of this shortfall was due to the calendar
shift and some budgeting errors, the overall trends for the month were not as positive as fall
quarter.
He explained that overall, the operating areas fell short in contribution by $264,000 for the
month but a portion of this was made up in savings in allocated expenses, which reported a
positive budget variance of $85,000. This allowed for a total monthly net income of $209,000,
against budgeted net income of $377,000. In terms of net income year-to-date, the Association
was $80,000 less than planned.
Mr. Williams also noted that the recent Daily Bruin article citing a graph that described current
sales as having reached “record lows” was inaccurate, explaining that sales were only .5%
behind last year.
2. February
Mr. Williams also reported that Store results continued show negative variances to plan but that
those results were also very close to last year. He indicated that Food Service was performing
well and that new sales trends would emerge in future months, given the opening of the Court
of Sciences Student Center.
Overall, management anticipated that February results would be closer to plan than the prior
month.
3. Budgeting Process
The coming several years appear to present some very difficult challenges with significant cost
increases in retirement, health and insurance costs, university charges, and added depreciation.
These additional costs along with the textbook trends will be difficult to overcome. These
issues will be covered in the budget assumptions.
B. *Our Independent Bookstore
1. Academic Master Plan
Management has finalized the staff adjustments such that one group would focus on improving
gross margin in the core textbook business while the other team would focus on outreach, APS,
and new innovation and technological solutions.
Associated Students UCLA
Board of Directors
Minutes of the February 24, 2012 Regular Meeting
Page 3 of 9
Approved March 16, 2012
2. Bookzone
Mr. Williams reported that Bookzone would be promoting a literary Birthday Series and will be
offering a 20% discount on all children books.
C. *Campus Partnerships
1. Farmers Classic Tennis
Management is developing a new food layout for this year’s tennis tournament to adjust to
space limitations that have arisen as the result of the renovation of Pauley Pavilion and to allow
for more café-style designs for food operations.
D. *Championship Service
1. Mr. Williams informed the Board of several upcoming Store events including the BookZone
Bargain Book Sale, UCLA Store Patio Sale, Textbook Buyback, coupons in Grad Etc., and a
UCLA Store give-away via Facebook.
E. *Your Student Association
1. ASUCLA Benefits U
ASUCLA Benefits U schedule will be:
Feb 27 – Welcome to Court of Sciences Student Center
March 12 – UCLA Store Patio Sale (members save an extra 20%)
March 19 – Textbook Buyback
F. *Building Towards the Future
1. Court of Sciences Student Center
Mr. Williams reported that the Court of Sciences Student Center opened on Tuesday, February
21, 2012 and that the operation is reporting strong sales and customer traffic. He noted some
minor issues that will be addressed including changes to cueing strategies, minor dining room
adjustments, changes to products carried by the store, as well as continuing to train the staff to
improve the speed of service.
2. Ackerman Union Interior Design/Patio Project
The Ackerman design project continues to move forward with the current focus on the A-level
spaces, specifically the placement of a potential book area as well as adjustments to food
offerings on that level.
3. Pauley Pavilion
Management continues to work with DIA in developing the food line up and concession stand
construction. Management is planning to deliver a proposal including operating layout and
commission schedule within the next two weeks.
Associated Students UCLA
Board of Directors
Minutes of the February 24, 2012 Regular Meeting
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Approved March 16, 2012
4. Casual Dining
Management met with potential casual dining partners as well as the Capital Programs and
Facilities teams to develop a working strategy. The next step is the development of complete
engineering and cost estimates.
5. Kinross
Final construction is in process and fitness equipment and layout are nearing completion.
G. Employee Investment
1. Employee Appreciation Days
Employee Appreciation Days will be March 7-11 when all ASUCLA employees get additional
Store discounts.
H. Space, Outreach, and Services
1. Health Sciences
Mr. Williams reported that he, Ms. Thornton, Ms. Giannitrapani, and Ms. Karen Noh, had an
informal discussion about next steps for this group and the major challenges. He indicated that
a draft project scope document would be discussed at the next committee meeting.
2. New Media
The New Media group is working on a final design for the new ASUCLA web page layout and
ASUCLA Marketing and Sales Promotion will develop a refined proposal based upon input
from the group. Ms. Noh also introduced a mobile ASUCLA Benefits U application that was
developed in conjunction with Student Media.
I. Food Service
The food team continues their aggressive pace in opening new operations, adjusting staff and
menus, and planning for Pauley and Tennis concession layouts.
Mr. Williams reported that management has completed the first phase of a beta test of nutritional
information for CSSC and he anticipated that preliminary nutritional information and development
costs would be available for Board review soon.
EXECUTIVE COMMITTEE REPORT
Mr. Reyes reported that the Committee met on February 15, 2012 and discussed The Healthiest
Campus Initiative (formally informally known as “The Healthy Foods Initiative”) and he also noted
that the Joint Operating Committee meeting was changed to be scheduled later during spring quarter to
allow for more time for budget review.
Associated Students UCLA
Board of Directors
Minutes of the February 24, 2012 Regular Meeting
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Approved March 16, 2012
FINANCE COMMITTEE REPORT
Mr. Ferrari stated that the Committee met on February 17, 2012 and heard a mid-year report from Mr.
Arvli Ward, Director of UCLA Student Media about the development of new technology-driven
revenue streams. The Committee approved the FY 12/13 Budget & Five Year Forecast Tentative
Assumptions and forwarded them to the Board for approval.
SERVICES COMMITTEE REPORT
Ms. Liu stated that the Committee met on February 3, 2012 and heard a presentation from Ms. Cindy
Holmes, ASUCLA Director of Trademarks & Licensing, regarding current international licensing
strategies, and the logistics behind the licensing process as well as various types of licensing
agreements. She also discussed corporate social responsibility advocacy that takes place within the
Association’s domestic licensing programs. The Committee also heard an update regarding
collaborations with UCLA Radio, which will be implementing a pilot program of broadcasts in the
Kerckhoff cafe Monday through Friday from 12:00-2:00 p.m.
HEALTH SCIENCES AD HOC COMMITTEE REPORT
Ms. Thornton explained that the Committee hasn’t meet, but is planning to draft a project scope for the
space and are in the early development phase.
NEW MEDIA AD HOC COMMITTEE REPORT
Mr. Roberts stated that the Committee met on February 17, 2012 and discussed changes to the
ASUCLA web page to make the interface more intuitive and user-friendly. The Committee also
previewed the aforementioned ASUCLA Benefits U application.
FINANCE DIRECTOR’S REPORT
January Financial Results
Mr. Delia reported that gross income for January was $1,020,000 or 13% less than planned with
negative variances appearing in all divisions, however these negative variances were partially offset by
savings in wages and benefits, which were $60,000 less than planned; and in other controllable
expenses which were $32,000 less than planned for the Association as a whole, such that contribution
from all areas was $264,000 less than planned.
In turn, negative contribution variances were partially offset by an $85,000 positive variance in
allocated expenses that resulted from savings in Administrative & Support Services, which were
$21,000 less than planned; decreased spending in maintenance and utilities, which were $22,000 and
$20,000 less than planned respectively; and in depreciation, which was $22,000 less than planned.
Given these results, net income for the month was $168,000 less than planned and only $80,000 less
Associated Students UCLA
Board of Directors
Minutes of the February 24, 2012 Regular Meeting
Page 6 of 9
Approved March 16, 2012
than planned year to date. Mr. Delia called the Board’s attention to year-to-date gross income
compared to the prior year, reiterating that sales were only 0.5% less than the same period in the prior
year, and net income was $449,000 less than the prior year.
Turning to the reconciliation, Mr. Delia explained that the $159,000 negative variance in contribution
from the Store resulted from decreases in sales, which were $822,000 less than planned due primarily
to negative variances in the Computer Store, New Text, the Academic Publishing Service, and
Bearwear. These negative variances were partially offset by increased sales of Used Text, where sales
were $146,000 greater than planned.
Sales in the Restaurants Division were $154,000 less than planned primarily due to delays in opening
the Court of Sciences Student Center which resulted in a $93,000 negative variance to plan; and due to
decreased income from outlying areas including LuValle Commons and Jimmy’s; as well as decreased
sales in the Kerckhoff Coffee House and decreased Concessions.
Mr. Delia noted that the Services Division was slightly off plan due primarily to decreases in foreign
licensing, and he noted that the income from the Student Union Division was very close to plan.
In terms of cash, the Association reported a $10,356,000 book balance at month end, which is a
decrease from the same period in the prior year. Mr. Delia explained that this variance resulted from
decreased income, increased expenses and the payment of Court of Sciences Student Center expenses.
Of this balance, $3,564,000 has been committed to capital projects, leaving $5,872,000 in
uncommitted cash, a level that is $1,126,000 greater than the $4,746,000 Board-required cash reserve.
Mr. Delia reported that past due accounts receivable rose slightly from the prior month and inventories
at cost fell slightly, while inventory turns remained relatively flat.
February Preliminary Sales
Again Mr. Delia called the Board’s attention to month-to-date results compared against the prior year,
noting that sales were up $9,173 or 0.4% from that period, and year-to-date, Store sales were only
down 2%. He noted that sales in the Market where year-to-date sales were on par with those in the
prior year, while sales in discretionary-spending areas such as the Computer Store and the Apparel
Division were down significantly and he attributed this trend primarily to declines in the economy
overall.
Although sales in the Academic Support Division were down to plan, sales in LuValle Commons were
very close to budget, and Mr. Delia noted that shortfalls in sales of dental kits in the Health Sciences
Store resulted primarily from timing. He noted also the increased sales in the Hilltop Shop, which were
$4,877 ahead of plan, offset a $4,437 negative variance in Mail, Telephone and Web sales.
Given these results, management anticipated that the Store as a whole would report an $84,627
negative variance to plan in gross margin by month-end.
Mr. Delia reported that sales in the Restaurants Division were almost exactly on plan month-to-date,
with strong results appearing in Café 451, the Cooperage and Panda Express, and that these variances
along with smaller positive results from other areas helped to offset a $77,008 negative variance to
plan that resulted from delays in opening the Court of Sciences Student Center.
Associated Students UCLA
Board of Directors
Minutes of the February 24, 2012 Regular Meeting
Page 7 of 9
Approved March 16, 2012
NOTICE OF BYLAW ADMENDMENTS
Ms. Giannitrapani asked if all members had reviewed the proposed changes and she reminded the
Board that once approved; the bylaws would be sent to the Chancellor for approval.
Mr. Okahana raised several questions with regard to the term-ending dates for both the Board and its
Committees, and after an extended discussion of the proposed impact of adjusting these terms, the
Board opted to return the amended bylaws to the Executive Committee for further review.
APPROVAL OF FY 12/13 BUDGET & FIVE YEAR FORECAST
TENTATIVE ASSUMPTIONS
Mr. Ferrari made a motion that the Finance Committee is recommending that the Associated Students
UCLA Board of Directors approve the FY 12/13 Budget & Five Year Forecast Tentative Assumptions.
Mr. Delia and Mr. Williams briefly reviewed the purpose of the tentative assumption document and
asked for feedback from the Board. Ms. Liu raised concerns about an assumption in the Student Union
Division that cited potential avenues of income from corporate sponsorships as well as concerns about
an assumption in the Licensing area indicating growth in the international licensing footprint for the
Association.
After an extended discussion, Mr. Lowenstein called the question to approve the FY 12/13 Budget &
Five Year Forecast Tentative Assumptions.
Ms. Giannitrapani called for a vote. The motion was approved by a vote of 9 yeas, 0 nays, and 1
abstention.
EXECUTIVE SESSION
Ms. Giannitrapani called for consent for the Associated Students UCLA Board of Directors to enter
into Executive Session. There being no objections, the motion was approved by unanimous consent.
The Board entered into Executive Session at 2: p.m.
Ms. Giannitrapani called for consent to adjourn the Associated Students UCLA Board of Directors
Executive Session. There being no objections, the motion was approved by unanimous consent.
The Board adjourned Executive Session at 2:12 p.m.
Associated Students UCLA
Board of Directors
Minutes of the February 24, 2012 Regular Meeting
Page 8 of 9
Approved March 16, 2012
ADJOURNMENT
Ms. Giannitrapani called for consent to adjourn the Associated Students UCLA Board of Directors
February 24, 2012 Regular Meeting. There being no objections, the meeting was adjourned at 2:12
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
Associated Students UCLA
Board of Directors
Minutes of the February 24, 2012 Regular Meeting
Page 9 of 9