Associated Students Ucla s6

ASSOCIATED STUDENTS UCLA BOARD OF DIRECTORS Regular Meeting May 18, 2007 12:00 p.m. Kerckhoff Hall Staterooms

PRESENT: Matt Bukirin, Jared Fox, Gary Galbraith, 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

GUESTS: Ari Baron (Creative Brand Manager), Cindy Bolton (ASUCLA Food Service Director), Christine Cam Cam (Visual Merchandizing Manager), Roy Champawat (ASUCLA Student Union Director), Rich Delia (ASUCLA Chief Financial Officer), Jesse Rogel, Jan Griwach-Ronci (ASUCLA Director of Supply Division), Patrick Healey (ASUCLA Director of Apparel), Manyee Lieu (Restaurant Marketing & Retail Graphics Manager), Van Luong (Marketing Office Manager/Junior Designer), Jerry Mann (ASUCLA Student Support Services Director/Business Analyst), Lawrence Mendoza (Senior Web Designer/Developer), John Sandbrook (Executive Officer), Cesar Vargas (Senior Editor), Sonia Wilmarth (Academic Planning and Budget), (Neil Yamaguchi (ASUCLA Director of Academic Support), Amanda York

CALL TO ORDER

Ms. Ho called the meeting to order at 12:08 p.m.

ADOPTION OF CONSENT CALENDAR & ORDERS OF THE DAY

Mr. Lowenstein moved, seconded by Mr. Fox, that the Associated Students UCLA Board of Directors accepts the Orders of the Day. Ms. Ho called for consent. There being no objections, the agenda was approved by unanimous consent.

MINUTES

Mr. Lowenstein moved, seconded by Mr. Fox, that the Associated Students UCLA Board of Directors approve the Minutes of the April 20, 2007 Regular Meeting. Ms. Ho called

1 for consent. There being no objections, the minutes were approved by unanimous consent.

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 April’s overall financial performance was on plan with significant results in the Store. The Restaurant Division had a positive variance of $52,105 in sales but reported a shortfall in contribution due to budgeted income related to a beverage contract and additional labor costs associated with the Festival of Books.

The Student Union missed contribution by $23,918 due, in part, to the delay in implementation of the new gaming unit and increased Waiver Pool contributions.

Mr. Williams noted that to date, May sales appear strong, and he expressed his confidence that month-end results will meet plan.

B. Marketing/Products/Programs

Mr. Williams thanked Board members and Management for their help with the Student Faculty Round Table. He thanked Karen Noh, Emily Schanepp, Roy Champawat and the Marketing and Catering staff for their exceptional work. Mr. Williams also thanked Melanie Ho who designed the basic program as well as the outstanding presentation video.

The next Benefits U e-mail promotion will offer discounts on food items as well as thanks to Benefits U members for their support throughout the year.

In order to acknowledge the Marketing Department’s exceptional work, Mr. Williams welcomed the Marketing Department to the board, and introduced Lisa Perez, Division Area Manager of Marketing & Sales Promotion, who then introduced her staff. Mr. Williams indicated that development of the updated UCLA Store website has begun, and that management is pleased that the Marketing team has brought enthusiasm and new ideas to the project with promising results. He reported also that the new Fall Bearwear catalog is currently in production and will differ from previous catalogs in terms of product presentation with the use of new ‘lifestyle photography’.

2 C. Facilities/Capital Projects/Construction

Cooperage – The current space is in the process of expansion in preparation for upcoming construction.

Broad Art Cafe – A project schedule has been created, initial food service plans are in the final stage of development, and materials have been selected. As the project will cost over $100,000, it will be necessary to obtain Board of Director’s approval of this capital expenditure. Unfortunately, the current Board of Director’s meeting scheduled may preclude timely review of this item and it may be necessary to take this to the Executive Committee for approval instead.

C. Campus Partnerships & Integration

NCAA 100 Championship Event – Upon learning of the Women’s Water Polo Team’s win, which signified the 100th Intercollegiate Championship won by UCLA teams, the Association released “100th Championship” logoed product both in the Ackerman Union store and on the website before noon the following day. Mr. Williams commended both the Store and Marketing teams for exemplary work.

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

EXECUTIVE COMMITTEE REPORT

The Executive Committee met on February 8th at 1:00pm and heard a version of the Executive Director's Report wherein everything from the excellent performance in the Store to the awning colors at the Kaufman cart was discussed. The Committee then reviewed information developed during the Board of Directors Mid-year Retreat concerning board-term transition and board member self-evaluations. A discussion ensued concerning the Entities Committee, incoming Chancellor Block, and the Faculty Outreach Plan. Also discussed was the progress of royalty and revenue sharing agreement negotiations with Athletics and new web-design positions in Marketing. Finally, the committee concluded by approving the agenda for the May 18th Board of Directors meeting.

FINANCE COMMITTEE REPORT

Mr. Sorger offered the May 11th Finance Committee report. Mr. Arvli Ward the Media Director presented the proposed FY 07/08 Budget & Five Year Forecast for the Communications Board, and a conversation ensued concerning the Communication

3 Boards many publications and possibility of cost reduction in the coming year. The committee heard the Executive Director’s Report and then reviewed the FY 2007/2008 GSA/USA budget.

Discussions ensued concerning the progress of various capital projects, and the Committee heard the Finance Director’s Report in which Mr. Delia reviewed April Financial Statements as well as month to date sales for May.

SERVICES COMMITTEE REPORT

Mr. Bukirin reported that the Services Committee met on May 11th and heard a version of the Executive Director’s report. Mr. Williams discussed the InFocus campus magazine and explained why the Mail-Telephone-Web-Market was off plan.

Mr. Fox offered the Sustainable Ad-Hoc Committee Report, and informed committee members that the utility costs in LuValle Commons are under review to determine if consumption reductions can be implemented, and a discussion ensued concerning new signage at LuValle that would inform the public of ASUCLA Sustainability efforts.

Mr. Williams and Mr. Delia provided the Committee a general update on the impending beverage contract, explaining that there has been no feedback as to when the Independent Labor Organization report, upon which Board approval of this contract is hinged, will be released.

FINANCE DIRECTOR’S REPORT

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

April Financial Statements

In April, net income was $2,000 ahead of plan, at $545,000 against a budget of $543,000. Mr. Delia noted that this was a departure from the trend of strong positive variances established in prior months.

The Store was $219,000 ahead of plan in terms of gross income due primarily to positive variances in Bearwear, which was $202,000 ahead of plan; and New Text, which was $172,000 ahead of plan. The effects of these strong results were softened by negative variances in LuValle Commons Textbooks, which was $80,000 off plan due to timing; Used Text (Ackerman), which was $57,000 off plan due to complications acquiring titles; and the Computer Store, which was $27,000 off plan due to an aggressive budget. A $23,000 positive variance in gross margin combined with these positive gross income results negated the effect of a $9,000 negative variance in wages and benefits, allowing for a $19,000 positive variance to plan in contribution.

4 Gross income for the Restaurants Division was $73,000 ahead as the result of the Greenhouse, which was $37,000 ahead of plan due to increased customer traffic; and Catering, which was $16,000 better than plan due to unbudgeted events. Despite these results negative variances in gross income from the Cooperage, which was $15,000 off plan; a $34,000 negative variance in wages and a $19,000 negative variance in other controllable expenses to generate a negative variance of $19,000 in contribution.

The Services Division as a whole reported a negative variance of $28,000 in terms of contribution as a result of a $27,000 negative variance in other controllable expenses related to the loss of royalty from a Japanese licensee.

The Student Union Division reported a positive variance of $48,000 in gross income that resulted from unanticipated events. Unfortunately, the positive effect of these results were reduced by negative variances in wages and benefits and other controllable expenses thus generating a $24,000 negative variance to plan in terms of contribution.

Despite an $11,000 negative variance in maintenance that resulted from increased facility repairs, positive results in utilities, which were $13,000 ahead of plan and depreciation, which was $ 24,000 ahead of plan allowed for an overall positive variance of $28,000 in allocated expenses.

In April cash increased by $3,058,000; year to date cash has increased $3,793,000, as compared to a $3,573,000 increase in the prior year. At month end, the Association showed a book-balance of $16,671,000, $11 million of which is currently earmarked for capital expenditures, leaving $5,670,000 in reserve – which is $2,315,000 more than required by the Board of Director’s Cash Reserve Policy.

May Month to Date Preliminary Sales

To date in May Store sales were $10,000 off plan due primarily to a negative variance in the Computer Store which masked the effect of a $49,000 positive variance in Bearwear, Bookzone, which was $19,000 ahead of plan; LuValle Commons, which was $11,000 ahead of plan; and Hilltop Shop, which was $21,000 ahead of plan.

The Store results to date were $310,000 ahead of the prior year.

Sales in the Restaurants Division were ahead of plan due to strong results from the Greenhouse and Jamba Juice. Mr. Delia noted a slight negative variance in third party operations (primarily Rubio’s Baja Grill.

ACTION & DISCUSSION ITEMS

Approve the Services and Enterprises FY 07-08 Budget and Five Year Forecast

5 Mr. Sorger presented this action item to the Board, explaining that the Finance Committee recommends that the Board approve the Services and Enterprises FY 07-08 budget and five year forecast.

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

Approve the Communications Board FY 07-08 Budget and Five Year Forecast

Mr. Sorger presented this action item to the Board, explaining that the Finance Committee recommends that the Board approve the Communications Board FY 07-08 budget and five year forecast.

Approve the 2007-2008 Graduate Students Association Budget

Mr. Sorger presented this action item to the Board, explaining that the Finance Committee recommends that the Board approve the 2007-2008 Graduate Students Association budget.

Approve the 2007-2008 Undergraduate Students Association Budget

Mr. Sorger presented this action item to the Board, explaining that the Finance Committee recommends that the Board of Directors approve the 2007-2008 Undergraduate Students Association budget.

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 1:14 p.m.

Mr. Sorger moved, seconded by Mr. Green that the Associated Students UCLA Board of Directors approve all actions taken in Executive Session. Ms. Ho called for consent, and there being no objections, all actions were approved by unanimous consent.

Ms. Ngai moved, seconded by Mr. Green, to exit Executive Session at 1:41 p.m.

6 ADJOURNMENT

Mr. Fox moved, seconded by Ms. Ngai, that the Associated Students UCLA Board of Directors adjourn the May 19th Regular Meeting. Ms. Ho called for consent, and there being no objections, the meeting was adjourned at 1:42 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