Associated Students Ucla s8

Approved: September 19, 2006

ASSOCIATED STUDENTS UCLA BOARD OF DIRECTORS Regular Meeting Friday, July 28, 2006 12:00 p.m. Kerckhoff Grand Salon

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

ABSENT: Matt Bukirin, Gary Galbraith, Natalie Nguyen,

GUESTS: Cindy Bolton (ASUCLA Food Service Associate Director), Gustavo Deharo (2005-06 Member, Board of Directors), Rich Delia (ASUCLA Chief Financial Officer), Craig Gill (Academic Planning and Budget), Jan Griwach-Ronci (ASUCLA Director of Supply Division), Patrick Healey (ASUCLA Director of Apparel and Accessories), Dorothy Kim (2005-06 Member, Board of Directors), Jerry Mann (ASUCLA Student Union Director), Janina Montero (Vice Chancellor of Student Affairs), Karen Noh (ASUCLA Special Projects Director), Lisa Perez (ASUCLA Marketing Director), Danny Ricker (Updating ASUCLA video), John Sandbrook (Executive Officer Business & Administrative Services), Arvli Ward (Student Media Director), Neil Yamaguchi (ASUCLA Director of Academic Publishing)

CALL TO ORDER

Ms. Ngai called the meeting to order at 12:09 p.m.

CHANCELLOR EMERITUS CARNESALE RESOLUTION LETTER

Ms. Ngai presented the Chancellor with a framed resolution from the Board of Directors, in appreciation of his service to the University. He, in turn, expressed his gratitude and belief in the Association. Chancellor Carnesale attributed its success, in part, to the influence of the Board, and expressed his confidence that the Association will remain successful, as a direct result of the time and dedication of each member of the Board.

1 Approved: September 19, 2006

ADOPTION OF CONSENT CALENDAR & ORDERS OF THE DAY

Ms. Ngai requested the following changes be made to the Agenda:

Agenda Item V: The Appointments of the Standing Committees should list Melanie Ho as the recommended Chair of the Executive Committee.

Agenda Item VI: The Executive Committee report will be presented by Ms. Ngai due to Ms. Park’s absence. Likewise, the Finance Committee report will be presented by Mr. Green due to Ms. Nguyen’s absence.

Agenda Item VIII-A: This is not an action item and therefore should not be delineated by an asterisk.

Mr. Lowenstein moved, seconded by Dr. Naples, that the Associated Students UCLA Board of Directors accept the amended Orders of the Day. Ms. Ngai called for consent. There being no objections, the agenda was approved by unanimous consent.

ELECTION OF OFFICERS

Ms. Ngai stated that the Nominating Committee recommends that the Associated Students UCLA Board of Directors approve the following Officer nominations for the 06/07 Board term:

Chair Andy Green Vice-Chair Melanie Ho Secretary Dave Lowenstein

Ms. Ngai called for a vote via secret ballot. This motion was approved by a vote of 9 yeas, 0 nays, and 0 abstentions.

ELECTION OF STANDING COMMITTEES

Ms. Ngai stated that the Nominating Committee recommends that the Associated Students UCLA Board of Directors approve the following Standing Committee nominations for the 06/07 Board term:

Executive Committee: The newly elected officers of the Associated Students UCLA Board of Directors were appointed as members of the Executive Committee by virtue of their positions as outlined in Bylaw 4.5.

Finance Committee: Jason Sorger - Chair Undergraduate Representative Jared Fox Graduate Representative Dave Lowenstein Non-Student Representative Bob Naples Non-Student Representative Dave Karlik At-large Member, Undergraduate Representative

Services Committee: Matt Bukirin - Chair Undergraduate Representative Dave Karlik Undergraduate Representative Natalie Nguyen Graduate Representative Jared Fox Graduate Representative Gary Galbraith Non-Student Representative Craig Kaplan Non-Student Representative Jerry Mann Student Support Services/ Student Union Director (ex officio) Bob Williams Executive Director (ex officio)

Personnel Committee: Hoi Ning Ngai - Chair Graduate Representative Matt Bukirin Undergraduate Representative Erika Schlarmann Non-Student Representative Robert Naples Non-Student Representative

Mr. Williams reminded At-Large committee members that they are required to attend all meetings. Mr. Lowenstein noted that the term of the Services Committee term is not stated in the by-laws, and explained that the term of this committee is consistent with the Board term, which is July 1 through May 31.

Ms. Ngai called for vote via a secret ballot. The motion was approved by a vote of 9 yeas, 0 nays, and 0 abstentions.

Ms. Ngai stated that she was honored to pass the Chair position to Mr. Green, the new Board of Directors Chair for the 06/07 term. Mr. Lowenstein then requested that Ms. Ngai’s exemplary service to the Board be acknowledged. The Board agreed.

EXECUTIVE DIRECTOR’S REPORT

Mr. Williams welcomed new Board members and offered the Executive Director’s Report to the Board.

Information Items:

A. Financial/Operational Financial Overview: – Mr. Williams reported that June financial results were very strong, with an Association-wide positive variance of $179,000 in terms of net income. He noted that $90,000 of this variance can be attributed to shrinkage, which was significantly lower than planned. Results are similarly strong, despite sales shortfalls in Bookzone and the Health Sciences Store for July. Management is also pleased to note that, after several months of operation, it appears that sales in Jamba Juice are not, in fact, being cannibalized from existing operations, as was initially feared. Rather, the Cooperage seems to have benefited from the proximity of Jamba Juice.

The Restaurants Division had a strong month, despite the losses resulting from the beverage contract delay. There was an overall positive contribution variance of $39,000, due mainly to the Kerckhoff Coffee House and North Campus. Café Synapse had an encouraging month as well and will make a positive contribution this year. The Cooperage and Catering had a strong month as well.

The Services Division was slightly ahead of plan while the Student Union fell short due to additional expenses. Administrative & Support Services expenses exceeded budget due to training program costs, wages associated with the new Special Projects Director position, and the cost of two English classes. Maintenance expenses were off plan as several large projects were completed ahead of schedule. Utilities were higher than plan, yet remained lower than mid- year projections.

Mr. Williams affirmed that financial performance in July was strong as well, and predicted that, by year-end, FY 05/06 will prove to be the second or third most successful year in ASUCLA history.

There is every indication that July Store and Restaurants Division results will be strong despite sales shortfalls that resulted, in part, from the Health Sciences Store Dental Kit Sales. Restaurant sales are strong in this month.

Point of Sales System Upgrade – Mr. Williams informed the Board that the

remaining Store cash register parts are soon to arrive. In order to ensure efficient service for the Fall Rush, installation of new point of sales cash registers in the Textbook area will be delayed.

Management has received bids for new Restaurants Division point of sales cash registers, but the best options in terms of cost and continuity of service would not be able to accommodate credit card processing at this time. This project will therefore be delayed, but management will continue to pursue temporary credit card options in the meantime.

Book Buyback Program – The Store staff is currently working to develop new Book Buyback programs, which will provide students with the ability to check the buyback price of used books online. Students will have the option to set email alerts, which will notify them if a textbook buyback price has increased.

Countrywide Classic Tennis Tournament –The Restaurants Division coordinated and provided the food for this entire event. Unusually warm weather affected food sales, but sales of beverages, water, and ice cream were strong.

B. Marketing / Products / Programs

Marketing –Mr. Williams introduced Special Projects Director, Karen Noh and Marketing Director, Lisa Perez to provide an overview of the two major marketing projects for this Fall Quarter.

ASUCLA Benefits “U” Ms. Perez provided the Board with a preview of ASUCLA Benefits “U” marketing materials and explained that this year’s marketing goal is to emphasize the connection between ASUCLA and student ownership.

Ms. Noh described this pro-active campaign, which encourages students to take full advantage of ASUCLA membership. Registering with ASUCLA Benefits “U” will be made virtually effortless for students as ASUCLA Benefits personnel will be strategically placed at registration, textbook lines, store cash registers, and school events, including Welcome Week and Back to the Beach. Additionally, ASUCLA Benefits “U” personnel will be present at all orientations, including Bookzone tours. Ms. Noh stated that, thus far, 75% of students attending orientations have registered for the program. September 18th is the launch date for Counter Cards.

Ms. Noh explained the benefits of this soon-to-be launched campaign, where students registered with ASUCLA Benefits “U” will receive food and store coupons via email. A similar program targeting members of the Alumni Association is in development. Information will be made available about this and the status of ASUCLA Benefits “U” registration at the next Board meeting.

Textbook Pricing – Mr. Williams introduced Neil Yamaguchi, Director of Academic Support, to the Board to discuss scheduled decreases in textbook prices. Mr. Yamaguchi explained that pricing is currently being tested in anticipation of web sales activity in the Fall and that sales of a limited amount of titles of digital books were tested during early Summer Sessions. Additional digital titles will be provided for Summer Session C.

Store Gift Cards – Mr. Williams announced that gift cards are now available in the store.

Training Card Program – Mr. Williams announced that the new Training Card Program will begin this Fall. Several key training issues regarding ASUCLA philosophy and policy will be presented to staff in a distinct and consistent manner, ensuring that all employees are provided with the same exact ASUCLA mission/description.

C. Facilities / Capital Projects/ Construction

Cooperage –Final plans are in the process of review and approval by management. A more accurate cost estimate for the food portion of this project is expected shortly, at which time all estimates will be analyzed against budgeted projections.

Taco Bell –Taco Bell has been incorporated into the new Cooperage architectural design, and plans and equipment costs from Taco Bell have been received.

Jamba Juice – Jamba Juice has acknowledged the need to accommodate greater than anticipated customer counts.

Healthy Foods Bar – Construction has begun on the new Greenhouse Healthy Foods Bar. Mr. Williams explained that the Executive Committee has authorized an increase in capital for this project, raising the budget to $600,000. Management projects completion of construction by Fall.

South Campus Student Center – The University Funding Group met to determine future funding strategies for this project. Currently, the cost of construction is projected at $21 million, and currently, the Association has committed $6.5 million towards this effort. Mr. Williams explained that efforts to develop donor relationships are currently in the works with University Development, and Interim Chancellor Abrams will be briefed on this project in August.

Kaufman Coffee Cart – With the assistance of Gloria Kaufman, coffee cart designs are complete, and construction will begin once requisite purchase orders

and other administrative details are sorted out.

Broad Art cafe – The designer is currently working on the food service plans. The Board will be updated upon receiving the first set of these plans.

Concession Stands – A major remodeling project for Pauley Concession Stands has been budgeted. The most cost-effective approaches involve reusing parts, which may prove the most time-efficient option as well, but a plan determining final costs will first need to be completed.

Shoe City – Shoe City is officially open and doing well. ASUCLA management is working with Shoe City’s corporate offices in order to ensure that they are adequately prepared for the Fall Quarter.

Credit Union – The University Credit Union service center located on the A- Level of Ackerman Union is currently under construction to create a more open, welcoming space, much like the surrounding facilities. Upon completion, the Credit Union will be a full service bank branch.

Catering Offices – The final phase of the catering office relocation is under way, thus freeing up additional space for the Student Governments.

Major Facilities and Maintenance Projects – A number of major facility and maintenance projects are under way:

- Kerckhoff Hall 4th Floor – Installation of gender -neutral restrooms - Grand Salon – Installation of new wood floor new carpets - Kerckhoff Hall 417 – Floor to be refinished, chairs to be rebuilt and reupholstered, table to be refinished - Grand Ballroom - Stage door replacement - ViewPoint Conference Rooms - Carpet and partition replacement - Ackerman Union, B-Level - Carpet replacement - Ackerman Union First Floor – Replacement of South East doors with automatic doors and installation of Locknetics - Ackerman Union, A-Level – Post Office renovation - North Campus – Phase two of hardscape renovation - North Campus - Dining area carpet and tile replacement - Northern Lights – Replacement of light fixtures - North Campus – Repairing and leveling of shifting bricks - Dining Areas – Installation of AC ducts

C. Campus Partnerships & Integration

Welcome Week – Services & Enterprises will coordinate Welcome Week efforts with both USA and GSA. This year, Welcome Week begins Sunday, September

24th. The “After Hours Sale” will take place in the Store on the following Tuesday, September 26, the ASUCLA Job Fair will take place in Westwood Plaza on Wednesday, September 27, and the ”Back to the Beach” program will be held on Thursday, September 28, in the afternoon. Additionally, we will provide USA and GSA with both food and logistical support during their respective orientation efforts.

Food Service Working Group – Roy Champawat and Karen Noh are part of the Food Service Working Group, which is researching various organic and sustainable food purchasing options for ASUCLA operations.

FY 06/07 Budget & Five Year Forecast, Chancellor Letter of Approval – Management has received a letter from the Chancellor approving our budget for 2006/2007.

Mr. Green asked if there were questions for Mr. Williams. Seeing none, he moved on to standing committee reports.

EXECUTIVE COMMITTEE REPORT

Ms. Ngai offered the July 11th Executive Committee Report. The Committee heard a version of the Executive Director’s Report in which strong financial results were noted for June. Mr. Williams provided Food Service Master Plan and capital project updates, addressed upcoming marketing campaigns for the Fall, and in following up on plans for the FY 06/07 ASUCLA Board of Directors Orientation Retreat, discussed the possibility of selecting an alternative location to Lake Arrowhead Conference Center. The Executive Director’s Office is continuing to research additional Retreat venue options.

The Committee then discussed and approved an increase in capital expenditures for the Greenhouse Healthy Foods Bar and discussed the logistics of ASUCLA operating the Post Office Express located on Ackerman A-Level.

The Committee also discussed the Alumni Association’s suggestion to shift the Wooden Scholarship from an expenditure fund to an endowment fund, in order to take advantage of higher interest rates.

The FY 06-07 Board of Directors slate of proposed officers and standing committees was discussed and finalized.

The Committee ended with a discussion of the agenda for the upcoming July 28 Board of Directors meeting.

FINANCE COMMITTEE REPORT

Mr. Green offered the July 18th Finance Committee Report. The Committee heard the Executive Director’s Report and the Finance Directors Report. In that meeting, Mr. Delia reviewed May and June preliminary financial results as well as month to date numbers for July. The annual Letter of Engagement from the External Auditor Engagement Letter was reviewed as were changes to the Finance Committee Meeting schedule and calendar. The committee approved additional capital for the Ackerman store carpet replacement, and also approved ASUCLA’s operation of the Ackerman Post Office Express.

PERSONNEL COMMITTEE REPORT

Ms. Kim stated the Personnel Committee met on July 14th and discussed one item in executive session.

FINANCE DIRECTOR’S REPORT

May Financial Statements

Mr. Delia reported that we were $33,000 over plan for the month in terms of net income and that the overall trend for the year was strong. Much of this positive variance was due to an energy rebate of $45,000 from prior years that was recorded to non-recurring income.

June Financial Statements

June proved a strong month with a net income of $56,000, exceeding plan by $179,000. The Store was responsible for a large portion of this, due to positive variances in sales of $471,000. Sales in the Restaurants Division exceeded plan by $76,000 and income in the Services and the Student Union Divisions was slightly better than plan as well.

In terms of contribution, the Store exceeded plan by $219,000, and Restaurants was better by $39,000. Mr. Delia restated the positive effects of the year-end physical inventory, and explained that this contributed roughly $90,000 to the positive variance for the Store.

Utilities were off plan by $26,000. A discussion followed whereupon Mr. Delia explained that aggregate costs for the year are significantly better than anticipated at mid- year. Based on the trend, it was estimated that utility expenses would be $225,000 over plan. In actuality, for 11 months, the negative variance in Utilities was $150,000.

Interest income was better than plan by $27,000 due to higher interest rates and a positive cash balance.

In terms of year to date net income, after 11 months, the Association’s total net income was $1,721,000, a positive variance to plan of $1,668,000, and $830,000 ahead of the

9 Approved: September 19, 2006 prior year.

The cash flow for the month was $908,000 in the negative direction. Mr. Delia explained this is not unusual during the summer months. Year to date, cash flow is positive by $2,290,000, against $835,000 in the prior year, which is a direct result of year-long positive variances in net income. The Association’s book-balance was $13,447,000 at month end, which is $721,000 less than the Board-required cash reserve.

In the month of June, the percentage of past due accounts receivable was 3% of the total, or approximately $60,000. Store Inventory turns rose to about 5.3.

July Month to Date Preliminary Sales

To date in July, Store sales were approximately $15,000 less than plan, although there were strong sales in the Apparel Division, which was up $63,000 to plan, and strong sales in Academic Support, which was $32,000 ahead of plan. LuValle Commons was $32,000 off plan, partially due to the fact that the Anderson School has been purchasing textbooks directly from distributors, and partially due to the Health Sciences Store, which was $79,000 off plan, with the loss of a sale of dental kits to an off-campus school.

Mr. Delia explained that, aside from selling dental kits to UCLA students, the Health Sciences Store also fulfills contracts for other schools. The bidding process in this area is quite competitive, and the Association failed to win the contract. Despite this, year to date, sales of the kits are up $114,000, a 6.6% improvement over plan, and a 12% improvement over the prior year.

The Restaurants Division had an especially strong month, with sales exceeding plan by more than $137,000, and exceeding the prior year by roughly $118,000. While Concessions sales had not been posted at the time of this meeting, management expected results to come in better than plan.

Ms. Ngai inquired as to the Association’s estimated total net income and Mr. Williams explained that there are several issues that will affect July’s net income. The first revolves around the ongoing process of evaluating the representation of Coca-cola products in ASUCLA operations. Earlier this year, management accrued a total of $86,000, in anticipation of the execution of a contract. As no agreement is forthcoming, management will reverse this accrual, which will result in the reduction of Restaurants Division income by $76,000 and the Store by $10,000. In addition, about $180,000 in expense for Incentive Compensation awards will be made in July. And finally, the Association has been awarded $65,000 in damages as a result of the settlement of a class action suit against the credit card companies, Visa and Mastercard.

Based on this, management anticipates that the Association will be ahead of planned net income by $1.2 to $1.5 million at year end.

CONFIRMATION OF EXECUTIVE COMMITTEE APPROVAL OF INCREASE IN FUNDING FOR GREENHOUSE PROJECT

Ms. Ngai reminded the Board that this item had been brought before the Executive Committee in lieu of the Board of Directors to speed administrative processing and begin construction, so that this facility would be ready for operation by the beginning of Fall Quarter.

ACTION & DISCUSSION ITEMS

Approval of ASUCLA Involvement with Ackerman Union Post Office Express

Mr. Green presented a motion to approve that ASUCLA assume operation of the Ackerman Union Post Office Express, which had been formerly operated by UCLA Mail and Document Services.

Due to the net loss of $20,000 generated by this operation, the University opted to discontinue this service, and terminate its lease with ASUCLA. Management has determined that the Association could operate a post office without incurring similar losses by dividing the operational duties between Student Union career employees and ASUCLA student employees, thus reducing personnel costs.

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

Approval of Capital Expenditure for Replacement of Ackerman Union Carpeting

Mr. Green presented this item, which requested the approval of a $150,000 expenditure to replace the Ackerman store carpet.

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

Approval of Sustainability Policy

Mr. DeHaro presented the final draft of the new ASUCLA Sustainability Policy.

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

ADJOURNMENT

Mr. Lowenstein moved, seconded by Ms. Ho that the Associated Students UCLA Board of Directors adjourn the July 28, 2006, Regular Meeting. Mr. Green called for consent. There being no objections, the meeting was adjourned at 2:05 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