USPS Consolidation

In late 2010, the USPS conducted an area mail processing (AMP) study, to see if it could save money by moving lower-volume “collection mail” processing from the North Bay Processing and Distribution Center (PDC) in Petaluma to the Oakland PDC. The AMP suggests that more than $1million could be saved annually and that there would be improved service. However, the study left customers and employees in the North Bay confused and full of questions.

Currently, “collection mail”—mail that’s collected from all post offices in the North Bay—is sent to the North Bay PDC. All mail destined for the North Bay remains in Petaluma, where it’s processed for next-day delivery, and all outgoing mail is sent to Oakland or San Francisco for further processing.

Consolidation of services would send all collection mail to Oakland for initial processing, and local delivery mail would be sent back to Petaluma PDC. Most letter mail would then be sent to the delivery distribution center in Petaluma for further processing.

In a meeting at the Petaluma Community Center on January 20, 2011, postal officials presented their proposal and initial findings, and fielded questions from a crowd of about 300 people, including customers and employees of North Bay PDC. This was followed up by a two-week “public comment” period, where concerned citizens could write in with their comments to the USPS consumer affairs manager in San Francisco.

One of the largest problems with this AMP study and proposal is that of credibility. While the USPS has repeatedly vowed transparency in all its dealings, the study itself was never made available to the public or employees for review, either before the meeting or during the public comment period. A postal official at the meeting said the study “may” be available after the public comment period closed on February 4.

USPS officials at the meeting touted the success of the AMP process, which has been used nationwide to consolidate facilities and processing, and even suggested that the Office of the Inspector General (OIG) validated its use as an important financial tool. However, at the meeting they did not—or could not?—provide even one example, out of the many times this process has been used over the last decade or so, where it has actually saved money or improved service. Nor did they mention the OIG’s criticism of the USPS for using the AMP process as it currently is at North Bay PDC, consolidating services from the bottom up.

They also failed to mention that the “improved service” they promised is primarily to and from Sacramento and San Jose, and doesn’t necessarily reflect service in the North Bay. This means if you’re mailing something to San Jose, it’ll probably get there quicker; if it’s going across town, all bets are off.

Many North Bay businesses rely on the effectiveness of overnight delivery for mail that’s destined for North Bay customers. It just doesn’t make sense to send this mail all the way to Oakland for processing. There are too many opportunities for mail to become lost or delayed. A recent Pacific Area performance print-out showed North Bay PDC at 100 percent of its productivity goals; Oakland PDC was at 49 percent, a good 10 percent below the Pacific Area average. Do we really want to rely on that kind of “productivity”?

Perhaps one of the largest concerns that have been voiced to date is one that was barely touched on by USPS officials: To achieve this “suggested” savings of $1 million annually, it’ll have to add an additional $1.5 million per year in transportation costs to an already overcrowded and often gridlocked traffic network in the North Bay. To the best of my knowledge, this figure doesn’t take into account future increases in the cost of fuel, which most economists see as a given. North Bay residents enjoy a uniquely diverse set of ecosystems, including forests, wetlands, watershed, vineyards, farms, and coastal areas. Many of these areas are protected and some even inhabited by endangered species. Adding more trucks and more pollution isn’t very ecosensitive, and it’s simply not the right choice for us.

Another major concern for employees at North Bay PDC is job loss. If the USPS follows its AMP process, the facility will lose about 34 positions. But if it continues to follow its current alignment process to its natural conclusion, it is conceivable that the 375 employees at North Bay PDC could eventually be whittled down to 100 or less. Most, if not all, of these employees have families, and they currently frequent and support North Bay businesses, which in turn support other North Bay businesses. There’s an economic “trickle-down” effect that will be felt now and in the future.

While there is no doubt the USPS’ financial future is in question, it seems a very questionable practice to balance its books on the backs of the very customers and employees who support it with no relative regard for their needs or concerns.