Presented on the Senate Floor on October 1, 1998 s2

Senate Bill #28 Page 1

Presented to the Senate floor on November 15, 2012.

Authored by: McMANUS Co-authored by: Senesi, Maemura, Sheehan, Hackney Introduced by: Sheehan

Referred to: Business and Finance Commission Internal Affairs Commission Environmental Policy and Planning Commission External Affairs Commission Recommendation: Business and Finance Commission Do Pass, 9-0-0, on November 20, 2012. Yes: Bigelow, Devera, Garcia, Griffith, Robinson, Schaeffer, Sencher, Sushch, Yip.

Internal Affairs Commission Do Pass as Amended, 9-0-0, on November 19, 2012. Yes: Cano, Herskovitz, Kappes, McManus, Renslo, Rivilis, Smythe, Waaland, Yoon.

Environmental Policy and Planning Commission Do Pass as Amended, 9-0-0, on November 27, 2012. Yes: Carn, Jackson, Kadaleia, McNicol, Moore, Proehl, Solis, Swiedler, White.

External Affairs Commission Do Pass as Amended, 8-0-1, on December 4, 2012. Senate Bill #28 Page 2

Yes: Coy, Gerhart, Grainger, Kang, Kasliwal, Seelam, Smith, Wooster. Abstain: Sweitzer.

An ASUCD Senate Bill to implement a new Long-Range Plan for the Bike Barn.

Section 1. The ASUCD Senate hereby adopts the following Long-Range Plan for the Bike Barn (see attached).

Finance: No Appropriation: None Vote: Majority

ASUCD LONG-RANGE PLAN Bike Barn

I. PURPOSE AND HISTORY

Founded in 1971, the Bike Barn was first established as a repair facility where students, faculty, and staff of the university could come and fix their bikes or have repairs performed for them. The location chosen for this Unit, a dairy barn constructed in 1910, is one of the oldest facilities on campus.

Since its inception, the Bike Barn has continually grown and adapted to meet the needs of an expanding student body. In the early 1980s, the Bike Barn invested in a small fleet of rental bikes to cater to campus visitors and exchange students. Over the last 14 years, under the direction of Robert St. Cyr, the Bike Barn has undergone tremendous change and become one of the busiest repair facilities in the region, performing well over 10,000 repairs per year. The rental program has been expanded to include over 200 Aggie Blue Bikes.

In 2009, the Bike Barn opened a satellite location called the Bike Garage in the Memorial Union parking structure. The Bike Garage has been a success, accommodating over a thousand unique visitors during its existence. In 2012, the Bike Barn expanded its presence in the MU with the opening of the Bike Hub. Also in 2012, the Bike Barn finished implementation of a new point of sales system (AIMsi), installed lights and repainted the front of the shop, increased the number of point of sales stations, and added new Bargain Bins. The result of these improvements in 2012 was the Bike Barn’s best summer since its inception 42 years ago; the Unit posted record revenues in both July and September.

Looking into the future, the most pressing issue is the need for a significant expansion. Investigation is ongoing into a few options that will allow the Bike Barn to get more space, including acquisition of the neighboring Outdoor Adventures facility. This will allow the Bike Barn to add space for inventory, offices, a showroom, and additional work stands, resulting in a more efficient operation of an already efficient Unit.

II. PERSONNEL

The Bike Barn strives to empower its staff to think outside of the box and pitch creative ideas to management while learning their trade skills for the future. The Unit picks its managers based not only on their mechanical aptitude, but also on what other benefits they have brought to the Unit over the course of their time there. The Bike Barn strives to foster a culture of promoting from within while also ensuring that the staff can grow with help from new employees.

General Manager: The General Manager, or Director, is responsible for the selection of the Business and Inventory Managers, large volume ordering, mentoring managers, conducting training seminars, reaching out to industry experts, dealing with supply-side issues, outlining a general vision for marketing, sales, and labor categories. The General Manager holds the final authority on all decisions made by the Bike Barn, Hub, and Garage. The General Manager works with other members of the staff Senate Bill #28 Page 3 to draft the annual budget and conduct interviews for new staff. The General Manager is a full-time position and has career pay.

Business Manager: The Business Manager is responsible for payroll procedure, hiring and firing, general accounting, promoting and demoting, bill paying, shipment processing, records keeping, attendance reporting, overseeing general floor operations, pricing and marketing strategy, event planning, and enforcing quality control standards on the shop floor. The Business Manager works with the General Manager to draft an annual budget and acts as a liaison to Creative Media. The Business Manager works 20-30 hours per week and is paid based on performance (from a $10.75/hour minimum to a maximum of $14.00/hour).

Inventory Manager: The Inventory Manager is responsible for records keeping, the point of sales system software, shipment processing, inventory reduction strategy, sales force training, and the annual physical inventory count. The Inventory Manager assists the other managers with marketing strategy, and short-term ordering. The Inventory Manager works 12-20 hours per week and is paid based on performance (from a $10.50/hour minimum to a $12.50/hour maximum).

Bike Hub Manager: The Bike Hub Manager is responsible for tracking Bike Hub sales, updating the Inventory and Business Managers on Bike Hub inventory, enforcing local opening and closing procedures, and notifying the Business Manager of any irregularities in Bike Hub operations procedures. The Bike Hub Manager assists the Inventory Manager in annual physical inventory counts. The Bike Hub Manager works 12-20 hours per week and is paid based on performance (from $10.50/hour minimum to $11.50/hour maximum).

Bike Garage Manager: The Bike Garage Manager is responsible for tracking Bike Garage sales, updating the Inventory and Business Managers on Bike Garage inventory and equipment depreciation, enforcing Bike Garage local opening and closing procedures, and notifying the Business Manager of any irregularities in Bike Garage operations procedures. The Bike Garage Manager assists the Inventory Manager in annual physical inventory counts. The Bike Garage Manager works 12-20 hours per week and is paid based on performance (from a $10.50/hour minimum to a $11.50/hour maximum).

Rental Manager: The Rental Manager is responsible for coordinating rental reservations for large groups, keeping records of all past and present rental paperwork, notifying the Business Manager of capital deprecation, and tracking all rental sales. The Rental Manager works 12-20 hours per week and is paid based on performance (from a $9.75/hour minimum to a $11.00/hour maximum).

Service Manager: A Service Manager is responsible for overseeing Senior Mechanics and Mechanics on the shop floor, directing daily repair workflow, conducting on-the-job mechanic and procedure training, reviewing and approving completed repairs, enforcing daily time attendance and opening and closing procedures, and reporting employee performance to the Business Manager. Service Managers work 12-20 hours per week, and are paid based on performance (from a $9.25/hour minimum to a $10.00/hour maximum).

Senior Mechanics: A Senior Mechanic is responsible for teaching new mechanics maintenance procedures, enforcing quality control by reviewing and approving repairs, and operating the cash registers. A Senior Mechanic should also be able to work independently at the Bike Garage or Bike Hub. A Senior Mechanic is paid based on performance from $8.75/hour to $9.00/hour.

Mechanics: A Mechanic is responsible for performing assigned repairs with guidance from Senior Mechanics and Service Managers. A Mechanic also restocks, cleans, and performs other miscellaneous duties per the request of a Manager. A Mechanic is paid based on performance from $8.00/hour to $8.50/hour.

Organizational Chart Senate Bill #28 Page 4

Future Plans: 1. Add new mechanics and full-time staff onto the payroll for satellite locations and possible Bike Barn expansion. 2. Add an IT Manager to the payroll to ensure that Bike Barn technological infrastructure is efficient and operating at all times. 3. Steadily increase payroll on a merit basis.

III. OPERATIONS

Bike Rental Program: The Bike Barn keeps a stock of bikes that it rents to clients for short time periods. A new Fleet Services Department manages the rental procedures, relieving strain on other employees. Often, the bikes are rented to participants of the University Extension program, such as exchange students learning English at UC Davis, or campus departments, such as BMS, Veterinary Medicine, or Student Housing. In April 2012, the Bike Barn purchased a fleet of 200 Biria Citibikes to expand their rental fleet; they will break even from this investment in 2013. Clients are charged about $50 to $60 for the first week and $10 for every following week. Income for the bike rental program is unpredictable, as it is heavily affected by the ease with which international students can visit the United States (international students, for example, may have trouble obtaining visas). The Bike Barn has approximately 200 rental bikes on hand and sells about 50 to 100 of them over the year.

Aggie Bike Buy: The Aggie Bike Buy program was introduced in 2012, providing students with a way to purchase a new bike through the Bike Barn at the beginning of the summer and have it assembled and ready to ride by the beginning of the academic year. The program was success, generating more revenue than expected. Aggie Bike Buy is the Unit’s best inventory reduction tool; when suppliers became unresponsive, customers were willing to accept slightly different bikes from inventory.

Used Bike Sales: The Bike Barn purchases a large volume of inexpensive bikes and parts from the bike auctions held at the West Entry Parking Structure. The recharge provided by Transportation and Parking Services (TAPS) allows the General Manager to purchase as many bikes and bike parts as necessary. The Bike Barn repairs these bikes and resells them for profit.

Repairs: The Bike Barn performs over 10,000 bike repairs per year, handling a wide spectrum of bike problems. The Unit provides free repair estimates.

Parts and Accessories Sales: The Bike Barn has a wide variety of bike parts on hand for immediate sale, including baskets and lights. The Unit is consistently able to purchase parts inexpensively and resell them for profit. If a client asks for a bike part and the Unit does not have the part, the Unit can Senate Bill #28 Page 5 special-order the part; every week or two, the Unit sends a bulk order for about $500 worth of merchandise and can accommodate the purchase of requested parts.

Service Plans: The Bike Barn introduced Service Plans in 2012 in order to generate additional labor revenue. The Bike Barn offers three different plans with varying degrees of provided service. These plans make upselling easier and have been essential in overstock liquidation.

Marketing: Coordination with third parties and other ASUCD Units has resulted in the first real marketing strategy for the Bike Barn. Coordination with bike company Giant™ has resulted in purchase of an Easy-Up Tent to expand the front entryway and promote their products. Giant™ also sold water bottles to Bike Barn with a price subsidy to hand out at orientation. Banners at the Bike Barn advertise service plans, Aggie Bike Buy, and other products.

Overstock Liquidation: The Bike Barn recently underwent significant efforts to improve the ways it manages its inventory. The creation of a new Inventory Manager Position has allowed the Bike Barn to control this problem more effectively. It has introduced a new advanced point of sales system, AIMsi, as of 2010. Additionally, it has conducted thorough physical counts of merchandise and performed extensive reevaluation of prices and inventory quantities to minimize the burdens overstock creates in their cramped facilities.

Barn Facilities: The main Bike Barn location is housed in the Barn, one of the oldest buildings on campus. The Bike Barn is in the unusual situation of having too much work to do in too little space. The Bike Barn does not want to give up its prime location; thus, it is investigating ways to expand its current operations at the Barn. New facilities would have to include space for more inventory, offices, a showroom, and additional workstands.

Bike Garage: The Bike Garage accommodated over 1,000 unique visitors since its opening in Fall 2009. The facility allows clients to fix their own bikes with tools they borrow from the facility. The Bike Garage is currently a money loser; however, the Bike Barn believes that the brand presence offsets the financial losses incurred by running the facility.

Bike Hub: The Bike Hub opened in April 2012 in the Memorial Union. Although business was slow over the summer, it picked up during the school year with enough pace to make up for any shortfalls over the summer.

Future Plans: 1. Investigate significant Bike Barn expansion to relieve overcrowding within the Bike Barn structure. Possibilities include expanding the Barn building or acquiring the existing Outdoor Adventures building. 2. Complete bike rental contract negotiations with other campus departments. 3. Bring the Bike Garage back to the Bike Barn to relieve staff strain and provide students with more extensive DIY tools and support. 4. Expand the Bike Hub concurrently with proposed Memorial Union renovations; add both retail area and new work stands. 5. Fix supply-side issues with Aggie Bike Buy and enhance the Bike Buy website, allowing the Business Manager to create new products.

IV. FINANCE

The Bike Barn is revenue-neutral; it is not subsidized by ASUCD. Income for the 2012-2013 school year is projected at $513,246.

Detailed Projected Income: 1. Parts Sales (Bike Barn), $260,422: The resale of parts purchased from the bike auctions. 2. Parts Sales (Bike Hub), $36,000: The resale of parts at the Bike Hub. 3. Parts Sales (Bike Garage), $6,000: The resale of parts at the Bike Garage. 4. Employee Sales, $8,000: Accommodates employee purchases of bike parts at heavily discounted rates. 5. Labor, $60,000: Funds generated from repair work by mechanics. Senate Bill #28 Page 6

6. Rental, $55,000: Income generated from bike rentals. 7. Bank Card Percent, ($8,000): Credit Card royalties. 8. Used Bike Sales, ($95,824): Income from selling refurbished bikes.

Detailed Projected Programmatic Expenses: 1. Office Supplies and Mailing, $3,299: Line item for materials such as paper, printer cartridges, staples, pens, and mailing. 2. Transportation, $10,000: Line item for the General Manager to attend trade shows, seminars, and advanced training workshops. The General Manager passes knowledge from these events onto the staff. 3. Telephone Equipment, $1,820: Telephone lines at the Bike Barn and Bike Hub for phone and credit card transactions. 4. Equipment Purchase, $10,000: Tools, benches, air compressors, etc. 5. Computer Equipment, $10,000: Digitizing workflow and replacing depreciated equipment. 6. Repair and Maintenance, $15,000: Line item for Unit maintenance, which includes roof and air conditioning unit repairs. A majority of these funds goes to UC Davis’ Facilities Management department. 7. Merchandise for Resale (Bike Barn), $230,000: Line item used for the purchase of bike parts that Unit will later sell for profit. 8. Merchandise for Resale (Bike Garage), $1,474: Inventory for Bike Garage, such as tubes and fenders. 9. Publicity, $5,000: Advertising, website creation, flyers, promotions. Can be used towards Creative Media if needed. 10. Staff Development, $1,000: Manager’s meetings, bi-annual shop party. 11. Rental and Upkeep Expenses for Aggie Bike Buy Storage, $3,700. 12. Replacement Reserve, $1,460. 13. University Recharge, $15,000. 14. OP Tax, $2,320. 15. Administration Recharge, $3,500.

Future Plans: 1. Steadily increase payroll from 25% to 35% on a merit basis. 2. Monitor, evaluate, and augment the balance of Bike Barn Capital Reserves.

V. ENVIRONMENTAL SUSTAINABILITY

All paper material, which currently includes receipts and printouts, is recycled. The Unit has a recycling bin for cardboard. The staff controls air conditioning and lighting; nothing is left running after closing time.

In 2012, the Bike Barn began extensive workflow digitization. This involved significant upfront costs of installing new servers and point of sales monitors. The process is continuing. Digitization is expected to reduce CO2 emissions by 90% over 8 years, resulting from a significant reduction in paper waste. Additionally, digital workflows will save $18,000 over 8 years in energy consumption resulting from decreased work order costs. The Unit expects to break even from the upfront cost by mid-2016.

The Bike Barn is also investigating the feasibility of recycling bicycle tires, chains, and frames. The Unit must determine an effective process for doing this; the current goal is to have the process in place by 2020, in compliance with the “Go Zero Waste” goals.

Future Plans: 1. Completely digitize all workflows, including point of sales software. 2. Recycle bicycle tubes, tires, chains, and frames.

VI. EXTERNAL RELATIONS

Giant™: Giant™, a bicycle manufacturer, has worked with the Bike Barn in the past. They sold a large Easy-Up tent to the Bike Barn at a reduced price to help the Bike Barn expand its entryway. Additionally, they sold water bottles at a price subsidy to the Bike Barn to hand out during orientation. Senate Bill #28 Page 7

City of Davis: The General Manager maintains contact with several members of the US Bicycle Hall of Fame, some of whom are present on city commissions related to the city’s bicycle infrastructure. The General Manager meets with these members several times per quarter to discuss the latest developments in the bicycle industry and the City of Davis.

Other College Bike Shops: The Bike Barn has been in contact with other college bike shops to share advice and knowledge about the Bike Barn’s business practices. Several bike shops at other campuses are looking to expand their operations. Specific contacts include the CSU Chico Bike Shop and the Stanford University Bike Shop, which provided inspiration for the Aggie Bike Buy model.

Downtown Bike Shops: The Bike Barn works directly with several downtown businesses, including Freewheeler, to curb feelings of the Bike Barn abusing its large volume to take market share. The Bike Barn refers non-UC, high-end clientele to downtown shops who may better serve their needs.

TAPS: The Bike Barn recently purchased additional rental fleet bicycles to meet demand for a TAPS conference that occurred on campus. These new bicycles became part of the normal rental fleet at the conclusion of the conference.

Future Plans: 1. Continue to provide and receive advice from bike shops at other universities. 2. Continue to work with downtown businesses to curb feelings of abusive volume practices. 3. Improve relations with other bike vendors in the city referring non-UC, high-end clientele to the downtown shops.

VII. INTERNAL RELATIONS

Creative Media: Bike Barn partnered with Creative Media to launch a new website for Aggie Bike Buy. Additionally, Creative Media assisted in the set up of the new point of sales system and the efforts to digitize workflows.

Future Plans: 1. Improve partnership with Creative Media to ensure that work orders are completed in a timely and efficient manner. 2. Work with Creative Media to improve the Aggie Bike Buy website. 3. Establish relationships with more ASUCD units to promote the Bike Barn.

VIII. TWO-YEAR GOALS

The main concern for the Bike Barn is their facility. The current facility is at an optimal location on campus, but is not adequate for future expansion. The primary goal of the unit over the next year is to meet and negotiate with Outdoor Adventures to secure their current facilities, which are adjacent to the Bike Barn. This significant expansion would create more space for inventory, offices, and a showroom, allow the Bike Barn to create additional workstations, and offer more merchandise. It would also allow Bike Barn to move the Bike Garage to the center of campus, expanding the services and tools that the Unit could offer to DIY bike fixers. To begin saving for such an expansion, the Unit will open a “Capital Improvement” account. Acquiring more space is of paramount importance to the future growth of the Unit.

The Bike Barn also hopes to increase payroll by hiring 3-6 more staffers in winter quarter, with the possibility of even more in spring. It will also complete the workflow digitization and finish optimizing the new point of sales system. Finally, the Unit hopes to develop a more effective relationship with Creative Media to ensure both that the Bike Barn’s technological infrastructure is always operational and that the Unit’s IT business remains within the Association.

The Bike Barn is confident that it can overcome the challenges and meet the goals outlined in this document. This will ensure that the Unit will continue to grow and be successful at a college and in a town known for their embrace of bicycle transportation. Senate Bill #28 Page 8

Finance: No Appropriation: None Vote: Majority

DO PASS AS AMENDED, 11-0-1, BY A ROLL CALL VOTE OF THE ASUCD SENATE ON DECEMBER 6, 2012. YES: ANGUIANO, BOTTOMS, BURKE, FIGUEROA, HAN, KAPPES, KAPUR, MIN, ONG, SAGALA, TOPF. ABSTAIN: GILBERT (A).

______Rebecca Sterling Date ASUCD President