ASSOCIATED STUDENTS UCLA BOARD OF DIRECTORS Regular Meeting April 20, 2007 12:00 p.m. Kerckhoff Staterooms

PRESENT: Matt Bukirin, Jared Fox, Andy Green, Melanie Ho, Craig Kaplan, Dave Karlik, Susan Klaisner (recorder), Dave Lowenstein, Bob Naples, Hoi Ning Ngai, Jason Sorger, and Bob Williams

ABSENT: Gary Galbraith, Erika Schlarmann

GUESTS: Sally Amato-Rogers (ASUCLA Director Human Resources and Payroll), Cindy Bolton (ASUCLA Food Service Director), John Beran (Daily Bruin Reporter), Roy Champawat (ASUCLA Student Union 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), Sonia Wilmarth (Academic Planning and Budget), (Neil Yamaguchi (ASUCLA Director of Academic Support) ASUCLA Student Workers and AFSCME Representatives (see enclosed)

At 12:03 pm before Ms. Ho called the meeting to order, 50 to 70 individuals including ASUCLA student employees, and AFSCME Representatives entered the room chanting slogans and demands in raised voices. Ms. Gloria Romero, majority leader of the California State Senate, Mr. Lloyd Levine, California State Assembly Member, Mr. Julio Gonzalez, Executive Vice President of AFSCME Local 3299, Tina Park, USAC External Vice President, and Professor Shane Que Hee, Professor Public Health, Environmental Health Science introduced themselves to the Board and indicated that students present at this meeting were requesting the support of the Board of Directors for this group’s stated intention that ASUCLA student employees become AFSCME members.

CALL TO ORDER

Ms. Ho called the meeting to order at 12:28 p.m.

1 ADOPTION OF CONSENT CALENDAR & ORDERS OF THE DAY

Mr. Lowenstein moved, seconded by Mr. Fox that item VII “Action/Discussion Items” be addressed immediately following item II “Adoption of Consent Calendar & Orders of the Day”; however, all other agenda items should be addressed in the order presented on this meeting’s agenda.

Ms. Ho called for consent, and there being no objections, the Associated Students UCLA Board of Directors accepted the amended Orders of the Day by unanimous consent.

At this point, Mr. Lowenstein requested a moment of silence to honor those persons impacted by the tragic events on April 16th at Virginia Tech University.

ACTION & DISCUSSION ITEMS

Changes to the Board of Directors Bylaw 4.3

Mr. Bukirin presented this action item to the Board, explaining that the Services Committee recommends that the Board of Directors approve the revised “Board of Directors Bylaw 4.3,” which pertains to the composition, responsibilities, and term of service for the Services Committee.

As there were no objections or abstentions, this motion was approved by consent.

Changes to the ASUCLA Policy on Services Committee

Mr. Bukirin presented this action item to the Board, explaining that the Services Committee recommends that the Board approve the revised “ASUCLA Board of Directors Policy on Services Committee.”

As there were no objections or abstentions, this motion was approved by consent.

Approval LuValle Commons Pilot Greening Project

Mr. Bukirin presented this action item to the Board, explaining that the Services Committee recommends to the Board of Directors the implementation of four initiatives under the LuValle Commons Pilot Greening Project: 1) conversion to bulk condiment dispensers; 2) recycling; 3) installation of waterless urinals in the men’s public restroom; and 4) installation of hand dryers in public restrooms.

As there were no objections or abstentions, this motion was approved by consent.

2 Approval Capital Expenditure to Adopt Marketlive v5 E-Commerce Platform

Mr. Bukirin and Mr. Sorger presented this action item to the Board, explaining that the Services and Finance Committees recommend that the Board of Directors approve a $165,000 capital expenditure to redesign the Bearwear E-commerce website and adopt Marketlive v5 E-Commerce Platform.

As there were no objections or abstentions, this motion was approved by consent.

Approval Capital Expenditure to Replace the Food Services Point of Sale (POS) System

Mr. Sorger presented this action item to the Board, explaining that the Finance Committee recommends that the Board of Directors approve a $365,000 capital expenditure for the replacement of the food service POS (Point of Sale) system.

As there were no objections or abstentions, this motion was approved by consent.

Approval Capital Expenditure to Replace East Side of North Campus Student Center (NCSC) Hardscape

Mr. Sorger presented this action item to the Board, explaining that the Finance Committee recommends that the Board of Directors approve a $250,000 capital expenditure for the replacement of the east side of the NCSC hardscape.

As there were no objections or abstentions, this motion was approved by consent.

3 EXECUTIVE SESSION

Mr. Lowenstein moved, seconded by Mr. Fox, that the Associated Students UCLA Board of Directors move into Executive Session.

The Board entered into Executive Session at 1:05 p.m.

Ms. Ho called for all guests to exit the Staterooms within five minutes time. The ASUCLA student employees, AFSCME representatives, and their supporters refused to exit the room, demanding that the Board support their issue and stating that they would not leave the meeting until they received the answer that they wanted. Ms. Ho and Mr. Williams stated that the Board has the right to enter into Executive Session for personnel and any other matters (Bylaw 3.5); furthermore, the Board would be consulting with legal counsel during Executive Session. Despite receiving numerous entreaties to follow the Board’s normal operational processes and allow it to fulfill its responsibilities, the group refused to leave the room and continued to disrupt the meeting with chants, threats, and demands.

At this point, Mr. Fox moved, seconded by Mr. Lowenstein, to adjourn the meeting. The Board voted 6-1-1 to adjourn.1

Mr. Fox moved, seconded by Mr. Sorger, to exit Executive Session at 3:37 p.m.

MINUTES

Mr. Fox moved, seconded by Mr. Green, that the Associated Students UCLA Board of Directors approve the Minutes of the May 9, 2007 Regular Meeting. Ms. Ho called for consent. There being no objections, the minutes were approved by unanimous consent.

1 PARLIAMENTARY NOTE: Due to the fact the Board did not first vote to exit out of Executive Session before voting to adjourn, this meeting was not ended. At this point, the Board relocated to another venue (the Ackerman Grand Ballroom, and subsequently, Ackerman Union 3517) in order to continue its business in Executive Session. The Board did not take any action in Executive Session.

4 EXECUTIVE DIRECTOR’S REPORT

Mr. Williams offered the Executive Director’s Report to the Board.

A. Financial/Operational

Financial Overview - Mr. Williams announced that February’s net income results exceeded plan due primarily to strong results in the Store, which exceeded budget by $215,000 in terms of gross income and $57,000 in terms of contribution. The Restaurants Division also performed well, reporting a positive variance of $53,000 in gross income, due primarily to strong results from the Greenhouse.

Mr. Williams reported also that preliminary measures suggest strong performance in March as well, although gross income results appear to be slightly off plan due primarily to an aggressive budget in the Computer Store; however, he expressed confidence that this and other negative variances in gross income would be offset by positive variances in Trademarks & Licensing as well as expense savings in other areas. Mr. Williams noted that to date, April sales appear strong, and he expressed his confidence that month-end results will exceed plan.

B. Marketing/Products/Programs

Mr. Williams informed the Board of the Association’s recent activities in support of sustainability including the fact that the most recent Benefits U email focused on Earth Friendly Products, and management worked closely with the UCLA Sustainability Committee to design a logo and support signage.

He noted also that enrollment in the ASUCLA Benefits U program increased by 718 members as a result of this email promotion, bringing the number of current members to 12,668. Management continues to implement new events to support this program, for example, the annual “12 Hour Sale” was changed to the “ASUCLA Benefits U Sale in which members received substantial discounts.

Mr. Williams announced that the transfer of ownership of the Relaxtation operation is complete. This operation, including all recipes and other related trade secrets, now belongs to ASUCLA, and the Association will oversee all aspects from this point forward. Mr. Williams also announced that the lease for the space currently occupied by FedEx/Kinko’s will expire in July. Alternative plans for this space are currently under consideration.

The 2007 Festival of Books is scheduled to take place on April 28th and 29th. The Restaurant Division is developing operational plans including new partnerships with vendors and revised operating formulas to accommodate the increase in customer traffic during this event. Plans for Coach John Wooden to appear in Ackerman Union to sign his

5 new book on April 29th were in development at the time of this meeting.

C. Facilities/Capital Projects/Construction

Cooperage – The Cooperage construction is underway.

Healthy Foods Bar – The Greenhouse continues to experience strong sales results and has been entered into two Food Service Industry awards programs.

South Campus Student Center – A layout depicting reduced size and scope has been completed and reviewed by the Services Committee.

Kaufman Coffee Cart – The Kaufman Coffee Cart is open and operating.

Broad Art Cafe – Various aspects of this project have been sent out to bid and management has provided guidance to students from The School of Arts & Architecture regarding board and sign design.

D. Campus Partnerships & Integration

NCAA 100 Championship Event – Management continues work with the Athletic Department to design artwork for several sports currently showing potential to win the next championship.

Mr. Williams congratulated Melanie Ho for having been awarded the UCLA Academic Senate Distinguished Teaching Award. In addition to the prestige afforded by this award, Ms. Ho received $2,500 in cash, a $15,000 fellowship and tuition for the next school year.

Ms. Ho asked if there were questions for Mr. Williams. Seeing none, she moved to the presentation of standing committee reports.

EXECUTIVE COMMITTEE REPORT

The Executive Committee met on April 5th at 1:00pm and heard a version of the Executive Director's Report. The committee discussed several items in Executive Session, the September Board Meeting, Graduate Student Orientation as well as the agenda for the upcoming annual Board of Directors Orientation Retreat in June. Finally, the committee concluded by approving the agenda for the April 20th Board of Directors meeting. .

6 FINANCE COMMITTEE REPORT

Mr. Sorger offered the March 2nd Finance Committee report noting that the committee first heard the Executive Director’s report and then discussed the future uses of the FedEx/Kinko’s space once the facility becomes available in July.

March preliminary results and April month-to-date Store and Restaurants division sales as well as gross margin estimates were reviewed, and the committee discussed preliminary FY 07/08 Budget & Five Year Forecast information including a 10 year forecast. Discussion centered around the impending increase in employer retirement contributions.

SERVICES COMMITTEE REPORT

Mr. Bukirin reported that the Services Committee met on April 6th and heard a version of the Executive Director’s Report. MarketLive, purveyors of the proposed new e- commerce platform for Bearwear, presented to the committee via conference call after which point the committee voted to recommend this item to the Board.

Mr. Fox offered the Sustainable Ad-Hoc Committee Report and presented the LuValle Commons Pilot Greening Project agenda item to the committee which included conversion of bulk condiment dispensers, can, plastic and glass recycling, waterless no- flush urinals and Xlerator hand dryers.

FINANCE DIRECTOR’S REPORT

Mr. Delia offered the Finance Director’s Report to the Board.

March Financial Statements

March proved a strong month with a net income of $ $66,000, a $151,000 improvement over plan. Although Store sales were slightly off plan (with a negative variance to plan of $62,000) a positive variance of $66,000 in gross margin combined with a $62,000 savings in wages & benefits allowed for a $31,000 positive variance in contribution. The Restaurants Division reported a positive variance of $80,000 in terms of gross income due, primarily, to increased sales in the Greenhouse, which was $47,000 ahead of plan, the Kerckhoff Coffee House, North Campus Student Center, LuValle Commons and Catering, which was $11,000 ahead of plan.

Together these positive variances served to diminish the negative effect of decreased gross income from Concessions and the Cooperage, which were $17,000 and $16,000 off plan respectively.

The Services Division reported a positive variance of $63,000 in terms of gross income,

7 and a positive variance of $63,000 in terms of gross margin thus offsetting the $29,000 negative variance in other controllable expenses, and allowing for a $32,000 positive variance in contribution.

The Student Support/Student Union Division reported a positive variance of $57,000 in terms of gross income, and a positive variance of $15,000 in gross margin. This, combined with a positive variance of $10,000 allowed for a $14,000 positive variance in contribution.

April Month to Date Preliminary Sales

To date in April Store sales were $40,439 ahead of plan. Bearwear was up $127,737 and Apparel was $123,000 ahead of plan. The Computer Store was $37,000 below plan but $179,000 ahead of last year. LuValle is below plan by $88,000 due to a timing issue. Based on this, in terms of gross margin our sales are up $41,000 but our gross margin will be down $17,000. Food sales were up $54,859 against plan, with Jamba Juice continuing its upward trend by being positive $25,602 to plan. All other areas were following the same yearlong patterns.

Mr. Fox moved, seconded by Mr. Green, to bring forward and read the Board’s proposed Statement on Student Employee Unionization. Ms. Ho called for consent, and there being no objections, Mr. Fox read the Statement as follows:

STATEMENT ON STUDENT EMPLOYEE UNIONIZATION

Since 1919, ASUCLA has been committed to on-campus student employment and development. Employing over 1200 students a year, ASUCLA takes pride in the opportunities we provide for student supervisors to participate in management decisions, and in the promotions and awards we offer to student employees for outstanding performance each year. Additionally, ASUCLA is governed by a student-majority Board, and it is especially important to us that our policies and practices provide all our student employees with a fair workplace environment that helps them to succeed and grow.

A group of students and employees has recently asked the ASUCLA Board of Directors to support the efforts of some ASUCLA student employees to be represented by the American Federation of State, County and Municipal Employees (AFSCME), Local 3299.

Although we respect the rights of all our employees to organize under the Higher Education Employer-Employee Relations Act (HEERA), the ASUCLA Board of Directors is also legally bound to remain neutral on the issue of unionization. California state law (Assembly Bill 1889) restricts management in any unit of the University, from assisting, promoting, or deterring union organizing, which means that, by law, we cannot support or oppose the students who would like to join Local 3299.

8 Furthermore, students are excluded from the UC-AFSCME contract that is currently in place through mutual agreement of the union and the University, and the ASUCLA Board of Directors does not have the authority to change this. Labor contracts at the University of California include employees from all ten UC campuses, and they are negotiated and agreed upon by the UC Office of the President and the respective union. Any requests for modification of existing collective bargaining units, including but not limited to the addition of students, would require a decision by the State of California’s Public Employee Relations Board (PERB) and would need to be consistent with the criteria in the Higher Education Employer-Employee Relations Act (HEERA). The final decision in the process would be honored by ASUCLA.

While AB 1889 precludes the Board from taking a position on unionization, we have long been committed to listening to and addressing the desires and policy concerns of our student employees. We encourage interested students to educate themselves fully on these matters.

Mr. Fox moved, seconded by Mr. Green, that the Board of Directors approve the Statement on Student Employee Unionization. This motion passed by a vote of 7-0-0.

ADJOURNMENT

Mr. Fox moved, seconded by Ms. Ngai, that the Associated Students UCLA Board of Directors adjourn the April 20, 2007 Regular Meeting. Ms. Ho called for consent, and there being no objections, the meeting was adjourned at 4:05 p.m.

* * * * * * * * * * * * 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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