Minnesota State University, Mankato

Bookstore Advisory Committee

Monday, April 2, 2001

The spring semester meeting of the Bookstore Advisory Committee was convened at 12:07 PM by David Cowan, MSU's Bookstore Leasing Agreement Liaison, in the Indigio Restaurant, lower level of the Centennial Student Union. The meeting was held on Monday, 2 April 2001.

Committee Voting Members Present – 6 of 7 Seats
Michael Groenewold Student Committee Voting Member
Brian Mullin Student Committee Voting Member
C. Rhys Gaffer Student Committee Voting Member
Jim Wartman Student Committee Voting Member
Tim Huebsch Student Committee Voting Member
Gary A. Hudson IFO Faculty Association Representative

Committee Voting Members Absent – 1 of 7 Active Seats
Carol Stallkamp (Excused) Finance & Administration V.P. Appointee

Ex-officio, Nonvoting Committee Members Present – 2 of 3 Active Seats
David Cowan Bookstore Leasing Agreement MSU Liaison
Paul Kroenke Barnes & Noble Manager

Ex-officio, Nonvoting Committee Members Absent - 1 of 3 Active Seats
Henry Morris Student Union Director

Others Present
Barb Gibbs Barnes & Noble Office Manager
Sheila Mason Barnes & Noble Assistant Manager
Kyle DiBrito Barnes & Noble Textbook Manager

Approval of Agenda
Without objection those present agreed to follow the meeting agenda for 23 March 2001 distributed by the Presiding Officer David Cowan.

Introduction of Advisory Committee Members and Charge of the BAC
Those present then introduced themselves and indicated the constituency they were representing.
It was noted that in Article VII-D of the Leasing Agreement, as well as in the Bylaws of the Minnesota State Student Association Constitution, language existed which established a Bookstore Advisory Committee. The BAC is to meet periodically to "discuss concerns on bookstore services and policies." The jurisdiction of the BAC is limited to the operation of the on-campus bookstore under contract with Minnesota State University, Mankato.

Overview of the Bookstore Leasing Agreement
Bookstore Leasing Agreement Liaison David Cowan then provided those present with a brief history of the on-campus bookstore operations since 1966, noting that the University got out of running a bookstore in 1974 relying instead on the skills of private operators.
Nebraska Book Company ran on-campus bookstore operations until December, 1975, and then Wallace’s University Book Store operated it from January 1976 until Barnes & Noble took over in July, 1999.

The existing agreement calls for at least $300,000 minimum annually. 10% of all gross sales up to $3.5 million annually; and 10.5% of all gross sales over $3.5 million. Of the $300,000+ that will be received by MSU from Barnes & Noble this fiscal year, $126,769 will be transferred to the Student Union budget to cover space rental of some 12,016 square feet of bookstore space within the Centennial Student Union. The $173,231+ balance will then be provided to the Financial Aid Office as a funding source to cover the costs of non-need based scholarships like talent grants.

Cowan believed that it was possible that Barnes & Noble would exceed $3.5 million in annual sales for MSU’s fiscal year 1 July 2000 through 30 June 2001. Cowan stated that to achieve such level of income in only its second year of operation speaks well for Barnes & Noble, their local leadership and the store's "customer service" oriented employees.

Barnes & Noble Exclusive Agent

It was reported that a writing team consisting of Tim Huebsch, Henry Morris, and David Cowan wrote key provisions of the Barnes & Noble Leasing Agreement including this clause found in Article V-D.5.

Bookstore related promotional materials are allowed in materials packaged
by Admissions and First Year Experience (FYE) which are provided to
prospective students, new freshmen and transfer students. Materials
included within such packets need the approval of Admissions or FYE.
Barnes & Noble is the University's exclusive agent for the sale of all
on-campus textbook and related educational supplies, and, as such, shall be
provided marketing access to potential customers on University property
to the exclusion of all other competitors.

It was noted that the Maverick Bookstore, an outlet of the national Nebraska Book Company,
is not affiliated with the University and elected not to submit a Request For Proposal (RFP)
in the spring of 1999 when MSU was seeking vendors to operate the on-campus store. Barnes and Noble was one of three national companies that took the time to submit a RFP.

Committee members noted that besides the $173,000 minimum provided to scholarships under the Leasing Agreement by Barnes & Noble, the company also provides $3,000 annually to the University student scholarship fund.

$400,000 Remodeling Investment

It was reported that Barnes & Noble invested over $400,000 to remodel the old store formally managed by Wallace's University Bookstore out of Kentucky. The grand opening was held in April 2000. The contract called for a $350,000 investment.

Organizational Chart
Paul Kroenke, Barnes & Noble Bookstore Manager, explained how his store's organization functions. He agreed to circulate an organizational chart to each of the members. (See attached.)

Bookstore Supported/Sponsored Educational, Cultural and Student Activities
Advisory Committee members then were briefed on some 40 instances where Barnes & Noble
worked with academic programs and student groups to promote the intellectual health of the campus. (See attached list.)

Impact of New Maverick Logo
Initial reaction to the new "Stompers" logo has not been great with adults customers.

Marketing Plans
A number of marketing plans were then shared with Advisory Committee Members.
Much input was provided to Barnes & Noble.

Buyback Promotions
After considerable discussion, a number of ideas surfaced on how to stimulate end of term book buyback sales.

Without objection the meeting adjourned at 1:15 PM.

Respectfully submitted,

David Cowan, Recording Secretary