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AGREEMENT REGARDING BOOK LEASING SERVICE Ld3 ~ March 15,2000 McNaughton Book Service A Division Of Brodart Co. Marsha McGrath, Collection Services Manager Clearwater Public Library 100 N Osceola Ave Clearwater FL 34615-6811 Dear Ms. McGrath: At the request of Leslye Key, our Sales Consultant for your area, we have prepared a McNaughton book leasing proposal for your review. One of the problems associated with supplying popular reading material is the shelflife varies from book to book. Too often the once popular book takes up shelf space while newer more popular books are arriving to take their place. Likewise, many books prove to have long term value and deserve a place in the library's permanent collection. Our book leasing service satisfies both situations. McNaughton provides the most popular books, shelf ready, at the time of peak demand. You have the option of purchasing books with lasting appeal or returning books as reader demand diminishes. Currently we are offering the following incentives to new subscribers: . A 5% discount from our current posted prices. . The opportunity to select and maintain an inventory double the standard inventory usually offered by McNaughton. . Titles retailing for up to $26 will be one allowance charge. · A free retention percentage of all new books allocated to your library may be transferred to your permanent collection. We would like to take this opportunity to introduce our service to you. The following outline will address each ofthe service areas available through our lease plan, many of which are unique to McNaughton. 500 Arch Street. Williamsport. PA 17705. (800) 233-8467 Extension 776. FAX (800) 999-6799 I. SELECTIONS AND ORDERING CORE COLLECTION McNaughton is the only service that provides a free Core Collection to establish your initial inventory. Our Core Collection List offers over 800 titles which are recent popular and bestselling titles published within the last 4-12 months. Your library may have the option to select and maintain double the inventory usually allowed by McNaughton. From that point on you will receive an allowance of new books each month to enhance the rotating collection. ANNOTATIONS AND SELECTION LISTS McNaughton's selection committee has earned the reputation of providing the very best pre- publication selections and title/author information. The annotations are verified each month with the publisher in order to provide you with the most accurate and complete information available. In addition, McNaughton's annotations cite BOMC Main, BOMC Alt., Lit. Gld. Main, Lit. Gld. Alt., Crime Club, large first printing, major advertising, author tour, major motion picture tie-in, TV tie-in, paperback rights, serialization in major publications, first novel, sexual references, 4- letter expletives, Kirkus, Booklist, and PW reviews and author's previous works. This information is most useful when selecting prepublished titles to determine popularity and patron demand. In addition to our adult selections, we offer a wide variety of young adult pre-publication titles each month for any subscriber to choose from. FIRST EDITION PAPERBACKS Since many more popular titles are now being published first in paperback rather than hardcover, McNaughton is the only service to prebind first edition paperbacks into hardcovers so that subscribers can meet their patron demands for this material through our lease plan. TELEPHONE ORDERS McNaughton's F AST/SERV toll-free telephone ordering is the only service that provides instant in-stock availability with immediate customer book allocation at the point of ordering. This service provides your library with the necessary information to make sourcing decisions for titles you need shipped within 48 hours. McNaughton provides 98% order fulfillment on or before publication date. II. PROGRAM FEATURES FULL ALLOWANCE Your library will receive full allowance all 12 months of the contract period. LOST BOOKS Up to 10% of the library's annual new book allowance may be deducted to cover lost or stolen books. DAMAGED/DEFECTIVE BOOKS No-charge replacements will be provided for damaged books up to six months after receipt, and publisher defects will be replaced with no time limitations. 200% INVENTORY Your library can maintain double the inventory usually allowed by McNaughton. You may select double the standard amount from the Core Collection List. Another option would be to select only the standard inventory and then refrain from returning and/or purchasing books until you build the collection to the 200% level from monthly selections of new books. 25% RETENTION To further enhance your McNaughton service, we will provide your library with 25% retention of the number of books shipped to your library. These are books the library would not have to purchase for transfer to their permanent collection. The 25% retention equates to approximately 300 books per year, a savings worth up to $1707.00. This figure is based on the average purchase price of a leased book. This transfer is automatically deducted monthly, and reflected on your monthly report. The library can elect to transfer books monthly, or at the end of each contract year, whichever is most convenient for you. The most popular or most current titles should be selected to assist with the on-going development of the library's permanent collection. Our retention is based on books shipped rather than books returned, so with McNaughton your library is guaranteed 25% retention each year. INVENTORY REDUCTION BY PURCHASE Books may be purchased from your library's inventory at a 75% discount. Plus, McNaughton offers semi-annual customer book sales which offer additional savings at prices as low as $2 each. SHIPPING COSTS There is NO charge to the library for shipment of books. McNaughton pays all shipping costs, to and from the library. Postage expended for book returns will be reimbursed upon request. All we need are your postal receipts and instructions concerning how the reimbursement check should be written. If you would prefer to be reimbursed with stamps, please let us know who should receive the stamps. IV. SERVICE OUTLINE AND ANNUAL RA IE The following will provide an outline of the proposed service and the annual cost. Please keep in mind this plan size is just our suggestion. We will be happy to adjust the plan size to best 5uit YaW' needs. New book allowance per month New book a1lowaDCe per year Allowable Inventory Total Books Sub-Total Less 5% illlToolJl)lOry discow Total CO$t Less 2% annuaI prepaYJDlnl discount Total annual cost Cost per book: All books Minus tree retemion savings Actual cost per book (lIIIIIge) The above figures do not include any applicable taxes. Flnt Year 100 1200 2000 3200 $18,300.00 $915.00 517,385.00 5347.70 $17,037.30 $5.32 515,387.30 54.81 Se"oad Year 200 2400 4000 6400 536,600.00 51,830.00 $34,770.00 $695.40 $34,074.60 55.32 530,774.60 54.81 One months free allowance will be given in lieu of the core collection. This allowance may be used to order new books from the monthly publication lists to help establish YOW' inventory. Half allowance is standard for the McNaughton servi"e however, your library will receive full allowance all 12 month at the same servire rate as our standard plllIl5 to further enhance your service. The 5% introductory disoowu will be extended to the second year with the increase of your plan to 200 book allOWllnce per month. Therefore, you will receive a 5% discount on the initial 100 book allowance for two years plus a 5% di~ount on the new 100 book allowance per month for one year. The items offered in this proposal are open to YOW' library at the prices quoted until October I, 2000. We hope you will let US put our experience to work for you. Please contact us at our toll free number, 800-233-8467, with any questions you may have. We look forward to hearing from you. c: Leslye Key, Sales Consu1tant Enclosure CLEARW2.WPS Clearwater Public Library Clearwater, FL If you think our proposal has merit or if you wish to have us explain any part of it in more detail, please indicate accordingly or call us toll-free at 1-800-233-8467. A) _ I wish to authorize approval ofthis proposal B) _ I would like your representative to call me. I have several questions before I decide. Signature Page Attached Signed: Title: Date: Return to: McNaughton Book Service P.O. Box 3006 WilIiamsport, PA 17705 CLEARWTR.WPS ~ ,~ , Countersigned: CITY OF CLEARWATER, FLORIDA ~ yf). Brian J. Aunogt Mayor-Commissioner ~ --............ By: 4~~-sr William B. Horne, II Interim City Manager Approved as to form: Attest: !rC~ e C. Hayman ssistant City Attorney -z