AREA MAIL PROCESSING (AMP) FEASIBILITY STUDY
Mankato, MN P&DF to Minneapolis, MN P&DC

August 9, 2011

An Area Mail Processing (AMP) study was initiated to evaluate the transfer of originating mail processing from the Mankato, MN Processing and Distribution Facility (P&DF) to the Minneapolis, MN Processing and Distribution Center (P&DC).  The initial results of the study support the business case for consolidation.  The study, currently in review at United States Postal Service Headquarters and its Area Office, is subject to change.

A public meeting will be held to share the initial results of the study and allow members of the community to ask questions and provide feedback.  The public’s input will be considered prior to a final decision.  The meeting will be held on August 24, at 6:30 p.m., at the Mankato City Center Hotel, at 101 E Main Street, in Mankato.  Below are preliminary highlights from the study:

Business Case:
Proposed annual savings in the draft AMP feasibility study are approximately $965,140.  Below is a breakdown of this savings estimate:

Annual Mail Processing Employee Savings	$697,502
Annual Management Costs	($12,608)
Annual Maintenance Savings	$226,068
Annual Transportation Savings	$54,178

Postal Employees:
Due to the consolidation, a net decrease of approximately 12 positions is projected.  All bargaining employee reassignments will be made in accordance with the respective collective bargaining agreements.

Net Craft Employee Impact	-12
Net Supervisory/Management Employee Impact	0

Local Customer Considerations:
Retail and other services currently available at the Mankato, MN P&DF/Main Post Office will not change as a result of the AMP.  Other customer considerations follow:

•	Local collection box pick-up times will not change as a result of the AMP.
•	Business mail acceptance will remain the same.
•	A local postmark will be available for stamped First-Class Mail.
•	Delivery of mail to residences and businesses will not change as a result of the AMP.
•	First-Class Mail Service Standard Changes:
•	A total of 6 First-Class 3-Digit pairs upgraded from 2-day to overnight, consisting of 0.59% of the total First-Class Mail volume. 
•	A total of 8 First-Class 3-Digit pairs will be downgraded from overnight to 2-day, consisting of 0.29% of the total First-Class Mail volume.  
•	The net impact to First-Class Mail is 0.30%.

Commercial Mailers:
•	Mailers who presort mail will continue to receive appropriate postage discounts. 

Written comments may be sent to:

Manager Consumer and Industry Contact
100 S 1st Street, Room 115
Minneapolis, MN 55401-9631

All comments must be postmarked by September 8, 2011.