Welcome Staten Island, NY P&DF Area Mail Processing (AMP) Study April 29, 2009

1. Welcome Staten Island, NY P&DF Area Mail Processing (AMP) Study April 29, 2009

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

3. AMP Video AMP Video Clip

4. Area Mail Processing (AMP) • 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

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

6. The Need for Change ~ 29% decline since 1998

7. Positive Outcomes 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

8. Common Concerns Service • Service Standards for First-Class Mail • No Changes to Service • Customer & Delivery Services • Delivery Services • Customer Services • Retail Hours • Business Mail Acceptance • Drop Shipment

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

10. Proposed AFCS Postmark for the Triboro District

11. Cancellations Compared to Same Period Last Year • Cancellations at the Queens Processing and Distribution Plant have declined 11% when compared to the same period last year. • Cancellations at the Staten Island Processing and Distribution Plant have declined 15.4% when compared to the same period last year

12. Staten Island to Brooklyn Travel Distance 16 miles

13. Staten Island to Brooklyn Benefits from consolidation • Approximately $1.9 million annual savings • Maximize resources • Reduce excess capacity • Eliminate duplicate operations • Focus on remaining operations

14. Staten Island to Brooklyn • Delivery times are not affected • Retail services are not affected • Meter and permit indicia do not change • Same hours of business mail acceptance • Drop shipments at Staten Island continue

15. Staten Island to Brooklyn Potential employee impact • Projected net decrease of 26 positions • Reassignments will be made in accordance with union collective bargaining agreements

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

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

18. Question & Answer Period Mail additional comments to: CONSUMER AFFAIRS MANAGER 1050 FORBELL ST RM 2015-O BROOKLYN, NY 11256-9631 Must be postmarked no later than May 14, 2009