Whereas, UC Items is currently housed under ASUCI, providing services such as UCI ID cards, Greek apparel and crafts, UCI spirit gear, 

Whereas, in an effort to benefit all parties (UC Items, the UCI bookstore, and ASUCI) and further improve the UC Irvine community, the consolidation of UC Items into the UCI Bookstore was discussed as the best plan of action,

Therefore, let it be resolved that ASUCI Legislative Council approves the following memorandum of understanding located below:

Memorandum of Understanding

The Associated Students, University of California, Irvine (a.k.a. ASUCI), and the division of Student Affairs agrees to the following terms regarding the consolidation of UC Items (a.k.a. Items) into the UCI Bookstore:

Terms

·         UC Items will vacate its current location in G203 Student Center effective June 30, 2012. 

·         The Photo ID program will be administered by the division of Student Affairs effective July 1, 2012.

·         All Items personnel (full-time and student employees) will be employees of the UCI Bookstore effective July 1, 2012.  Prior to this date, current UC Items manager will spend as much time as necessary at the UCI Bookstore to ensure a seamless transition. 

·         Photo ID program will be responsible for continued shuttle pass sales for Anteater Express, less credit card fees, with no an administrative surcharge.

·         UCI Items produces $70,000 of net profit towards ASUCI programs, and thus consolidating the store threatens ASUCI’s ability to contribute to student life on campus.  To restore needed revenue to ASUCI, ASUCI will receive payments from Student Affairs, for a minimum of five years effective July 1, 2012, to be increased 1% each year after year three to adjust for inflation, not to exceed $327K in the initial five years.  Payments will be issued to ASUCI according to the following distribution payment schedule:

Y1:  December 1, 2012 - $98,000

Y2:  December 1, 2013 - $32,000  Note:  UCI Bookstore and ASUCI will review sales report for Items merchandise from year one to identify sales. If remaining merchandise has not sold and is still in the current inventory, UCI Bookstore and ASUCI will take a 50/50 loss of $16K each.

Y3:  December 1, 2014 - $65,000

Y4:  December 1, 2015 - $65,650

Y5:  December 1, 2016 - $66,306

·         On July 1, 2017, this agreement will automatically renew unless a new agreement between both parties is made and ASUCI issues a resolution endorsing a new agreement that is suitable to both parties.

·         ASUCI and Student Center reserve the right to re-negotiate the agreement at any time; however, any changes to this agreement must be authorized by the ASUCI Legislative Council before enacted, and all terms of this agreement must be followed until a new agreement is established.

·         If the UCI Bookstore is outsourced or otherwise unable to execute the terms of this agreement, ASUCI has the option of the following courses of action:

o   If available, ASUCI will receive suitable retail space (as defined by ASUCI) on the terrace level of the Student Center at the current 2011-2012 per square foot rate of $1 per square foot and may elect to sell all related merchandise that was sold at UC Items at the time of the transition.  All contracts that were retained by ASUCI on July 1, 2012 will be transferred back to ASUCI.

o   ASUCI will receive a payment from Student Affairs in the amount of the rental rate for Student Center G203 or $40,000 each year, whichever is greater, each year that ASUCI is not issued a suitable retail location.