Welcome Panama City, FL P&DF Area Mail Processing (AMP) Study January 14, 2010

Slide 2 Agenda AMP Video PowerPoint Presentation Question & Answer Period Close Area Mail Processing (AMP)

Slide 3 AMP Video AMP Video Clip

Slide 4 AMP (Area Mail Processing) Consolidation of all outgoing or all incoming mail processing operations from one or more facilities into other automated processing facilities for the purpose of improving operational efficiency and/or service. Effective process used for decades to help us adjust to changes in the environment Area Mail Processing (AMP)

Slide 5 The Need for Change Postal Service faces Acute Financial Crisis Rise in Electronic Communications Economic Recession Change in Mail Mix –Increase in Work Sharing and Drop Shipments –Decrease in First-Class Mail Volume

Slide 6 The Need for Change ~ 37.7% decline since FY2000

Slide 7 Benefits of Consolidation Puts the Right People in the Right Place with the Right Resources Utilizes Equipment Efficiently Reduces Cost Does Not Affect Customer Services Supports Our Network Plan Positive Outcomes

Slide 8 Service Service Standards for First-Class Mail –Minimal changes to service Customer & Delivery Services –Delivery Services –Customer Services Retail Hours Business Mail Acceptance Drop Shipment Common Concerns

Slide 9 Jobs –Impacted Jobs Community Identity –Local Postmark Remains Available –Meter and Permit Indicia Do Not Change Common Concerns

Slide 10 Panama City to Pensacola Travel Distance 106 miles

Slide 11 Benefits from consolidation Approximately $500,000 annual savings Maximize resources Reduce excess capacity Eliminate duplicate operations Focus on remaining operations Panama City to Pensacola

Slide 12 Delivery times are not affected Retail services are not affected Meter and permit indicia do not change Business mail acceptance does not change Drop shipments at Panama City continue Panama City to Pensacola

Slide 13 Potential employee impact Projected net decrease of 9 positions Reassignments will be made in accordance with union collective bargaining agreements Panama City to Pensacola

Slide 14 Reduces Costs Improves Efficiency Puts the Right People in the Right Place with the Right Resources Transparent to Customer Services Supports our Strategic Plan Summary

Slide 15 QUESTIONS and COMMENTS Please come to the microphone and state your: NAME and BUSINESS AFFILIATION Question & Answer Period

Slide 16 Mail additional comments to: CONSUMER AFFAIRS MANAGER NORTH FLORIDA DISTRICT PO BOX JACKSONVILLE FL Must be postmarked by January 29, 2010 Question & Answer Period