Board of Regents opts to keep textbook rental under university control

After exploring its options, Southeast Missouri State University won't contract out its textbook rental service, the university's board of regents decided Wednesday.

The regents awarded Follett Higher Education Group a contract to operate the university bookstore while Southeast retained the right to maintain its textbook-rental program. Southeast will receive annual commissions based on a percentage of bookstore sales, and Follett will provide nearly $500,000 for a one-time renovation of the bookstore. The contract, effective July 1 through June 30, 2014, contains four optional one-year renewal periods.

University president Dr. Ken Dobbins said having the option of yearly renewal "gives us the opportunity to tweak the contract as we move forward."

Some students had expressed worries in the months leading up to the decision that contracting out its textbook-rental program could lead to higher prices for books needed for courses. Two vendors were brought to campus to make pitches for operating the bookstore and textbook rental, and on Wednesday regents decided to keep the textbook rental portion under the university's direct operation.

"Only Follett was able to provide financial information for operating the bookstore and textbook rentals or just the bookstore alone," said Kathy Mangels, vice president for finance and administration.

According to Mangels, textbook rental fees at Southeast come to almost $130 per semester for students taking 15 credit hours. Under Follett's proposed three-year phase-in rental plan, the cost per semester rises to $170 in the first year and to almost $187 by the third year.

"Their proposed cost for textbook rentals was something we didn't want to pass on to the students," she said.

Regents also approved cutting student fees.

Regents approved reducing the incidental fee for online dual and early college-credit courses to $85 per credit hour effective fall 2013, down from $107.

"We offer dual and early credit courses to high school students in 26 Southeast Missouri counties," said Dr. Ron Rosati, Southeast provost. "Affordability and not being eligible for federal financial aid may have been keeping students capable of completing college coursework from taking advantage of this opportunity."

In addition, the existing online course fee of $12.50 per credit hour and the Interactive Television and Video course fee of $5.50 per credit hour will be waived for high school students who pursue dual and early credit courses.

The returning student application fee was eliminated altogether.

"This is considered a nuisance fee by returning students," said Dr. Debbie Below, associate vice president for enrollment management at Southeast.

The fee, implemented in 2010, involved a nonrefundable $15 charge on applications by students returning to Southeast to continue their education. It has generated more than $15,000 for Southeast since its inception.

The regents awarded a contract for Southeast's branch banking services to U.S. Bank from July 1 through June 30, 2017.

Mangels said state statutes require daily banking services be bid every four years, and the choice between Commerce Bank, the current banking-services provider, and U.S. Bank came down to cost.

"U.S. Bank and Commerce Bank have wonderful reputations," she said. "But based on cost and subjective evaluation, it was determined that U.S. Bank provided the best and lowest proposal."

The choice of U.S. Bank over Commerce Bank is estimated to save Southeast more than $350,000 annually.

klewis@semissourian.com

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