Truckin’ Mail to South Central May Give Developers a Sweet Deal


By Jan Book

If your zip code is 90291 or 90292, get ready to mail those birthday and anniversary cards, as well as your rent, mortgage and credit card payments, a few days earlier. Why? Because unless we act NOW, all of our outgoing mail (and incoming mail), which used to be processed at and distributed from the center here in the Marina, will soon be trucked to South Central L.A. for processing and distribution. Window service will continue, at least for the time being.


On January 11, the US Postal Service decided to close down the westside processing and distribution center, even though the center was on budget and very efficient. I have reviewed the documents supporting the 'business decision' to close down this center, and the decision is based on faulty reasoning, and possibly, back room dealing.

Unless we campaign the US Postal Service to reverse their decision, we will not only have slower outgoing and incoming mail service, but there will soon be more housing, more retail and/or more office space to increase our current traffic problems. Oh, and don't forget the future increase in our postage!

How does the current system work and will the change improve our mail service?

Currently, all mail with the above zip codes is first delivered to the Marina Processing and Distribution (P&D) Center located on Jefferson Blvd., near Lincoln Blvd. At the Marina P&D Center, the mail is re-sorted by zip codes, trucked to smaller processing centers in our neighborhoods, and delivered to us by our mail carrier. For outgoing mail, the process is just the reverse.

Under the new plan, the Marina P&D Center will be closed and the land sold. Our Venice mail will be trucked to South Central L.A., sorted, bagged and reloaded onto a truck to then travel back to the westside for delivery or to LAX for out-of-town mail.

And for incoming mail, the trucks will be loaded at LAX, driven to South Central L.A., sorted, bagged and reloaded onto trucks to travel back to the westside for delivery. In addition to the travel time required to drive this distance, just think of the increase in traffic on our roads caused by all those Postal trucks traveling to and from the westside to South Central L.A.

According to Bill Almaraz, USPS Los Angeles District Manager, “the change will have no negative effect on service.”

Why would the Postal Service sell a well performing and efficient facility?

On February 22 at a briefing on the closure of the Marina P&D Center, I was given a packet of information which contained letters and financial information pertaining to the consolidation. In a letter to Congresswoman Maxine Waters, the President of the American Postal Workers Union, John Driver, wrote, “Mr. Almaraz unequivocally stated that the Marina P&DC was a very efficient facility.” And John Holden, Senior Manager at the Marina P&D Center, “stated that the facility was operating within budget and at an appreciable level of efficiency,” however, the decision to close the Center “was a business decision, not an efficiency decision.”

Being an accountant who likes detail, I reviewed the financial report which was the basis for making the ‘business decision’ to close the Marina P&D Center, and found errors in their calculations and reasoning. I won’t bore you with the fine details, but they report that they will save $17 million annually, which I believe is overstated by $3 million. However for some reason, they have failed to address what will happen to the over $37 million of revenue currently generated at the Marina P&D Center from processing bulk mail.

In addition, the Postal Service reports that it will cost over $8 million to renovate the South Central P&D Center in preparation for the consolidation. Furthermore, the internal documents show that the South Central P&D Center (which ranks 329 out of 400 processing centers) has a substantially higher processing error rate and lower performance rate than the Marina P&D Center (which ranks 178).

The real ‘business decision’ appears to have nothing to do with the processing of mail or the selling of stamps, but with the value of the land. According to Mr. Driver’s letter noted above, Mr. Almaraz revealed in a meeting on August 17, 2004, that “the Pacific Area, led by VP Al Iniquez, had been informally approached by an unnamed private entity about the possibility of selling the land the Marina P&D Center occupies.”

I found on the last page of the report prepared by the Postal Service in determining the viability of keeping or closing the Marina P&D Center, a one line entry which reads as follows: “Sale of Marina P&D Facility, $35,000,000.” I couldn't believe my eyes. The Postal Service is planning to sell over 17 acres of land located directly across from the Playa Vista development for half it’s market value. This is an outrage!

This is not the first time the Postal Service has sold valuable property for less than market value. In another correspondence, Mr. Driver gives the example of the sale of the Denver Colorado Annex USPS property in the summer of 2004. In this situation, the USPS property was sold for $7-8 million to a private interest. Within 72 hours, the property was split into two parcels; one parcel was sold for about $12 million and the other parcel has plans to be developed into a $65 million project.

What kind of ‘business decision’ motivates the owner of prime real estate to sell its valuable property for 50 cents on the dollar (or less, as in the Denver example)? No wonder the Postal Service is losing money, but how dare they continue to ask the public to pay for their bad business decisions. Or worse, for the back room dealing which appears to be in play here.

It is time for the community to stand up and say “STOP” to the 'bad business decisions' currently being made by the US Postal Service.

Is it wise for the Postal Service to close the Marina P&D Center at this time?

According to Mr. Almaraz, the reason for the move is declining mail volume at the Marina and excess processing capacity in Los Angeles. Nationwide, the first-class mail volume has declined 5.5%, while according to Mr. Moden, at the Marina P&D Center it has declined 20% over the past few years.
How could the westside have declined more than the national percentage when we have been experiencing a growth in new housing, new retail and new office space? Something doesn't make sense here.

I did some research. In the Venice and Marina area alone:

- 4,525 new homes/apartments have been completed in the past few years
- 2,939 new homes/apartments are currently under construction
- 1,976 new condos/apartments are in-process of being approved either by the City of L.A. or the County
This totals 9,440 new units, without considering the increase in retail and office space or the increase in hotel rooms.

And how much mail would 9,440 new units generate? Well, I receive 5-10 pieces of mail each day (including letters, bills, invitations, magazines, etc.). Over a week, I receive 30-60 pieces of mail, and over a year I receive 1,560-3,120 pieces of mail.

This could mean that these new units might generate from 14,726,400 - 29,452,800 pieces of mail a year. With the Marina P&D Center currently handling 2,758,104,900 pieces of mail annually, this represents more than a 1% increase. And, I'm only talking about the Venice and Marina area.

What if you consider the recent increase in housing, retail and office space currently going on in the other 23 communities affected by this closure.

If these communities are experiencing even half the amount of growth that Venice and the Marina have, then the increase in mail would result in more than a 12% increase.

We can all use common sense. There is no way the Marina P&D Center has had a 20% decline in the processing of mail. It is obvious that the consumer demand in the above zip codes has been on the increase, not the decrease.

This is supported by Mr. Driver’s above mentioned letter in which he writes “the USPS has begun diverting Marina P&DC first-class mail volume to other facilities...This decision is being made to directly impact the Marina P&DC operation and support the USPS contention that Marina P&DC first class mail volume has decreased.... The decrease is self-imposed, not consumer driven.”

In addition, “USPS Management has made subtle changes to standard operations at the Marina P&DC which have directly affected the performance and efficiency of the Marina P&DC...resulting in poorly prepared mail for Automation impacting performance and efficiency...the USPS have implemented relaxed Maintenance repairs and preventive maintenance schedules resulting in increased inoperable and unreliable vital" machinery....

“Furthermore, the USPS has instructed employees to mix First Class mail with Second Class mail...Why are machines not being repaired properly? Why are classes of mail being mixed? What are the motives? Who is making the decisions and why?”

The Postal Service is not being honest with the community, and this is another reason why the decision to close the westside center is a ‘bad business decision.’

What can I do to stop the closing of the Marina P&D Center?

We, as a community, can stop the closure of the Marina Processing and Distribution Center. But it requires each of us to stand up and be counted. The US Postal Service currently expects the consolidation to be completed by July 14, 2005. So write your letter today and mail or fax it to:

William Almaraz FAX 323-586-3702
LA District Manager
United States Postal Service
7001 S. Central Ave., Los Angeles, CA 90052

Postmaster General John Potter FAX 202-268-5211
United States Postal Service
475 L'Enfant Plaza, SW, Washington, DC 20260-0010

John F. Walsh
United States Postal Service
475 L'Enfant Plaza, SW, Washington, DC 20260-0010

Legree S. Daniels
United States Postal Service
475 L'Enfant Plaza, SW, Washington, DC 20260-0010

John A. Rapp FAX 202-288-5381
Senior Vice President - Government Relations
United States Postal Service
475 L'Enfant Plaza, SW, Washington, DC 20260-0010

Ralph J. Moden FAX 202-288-2503
Senior Vice President - Government Relations
United States Postal Service
475 L'Enfant Plaza, SW, Washington, DC 20260-0010

Posted: Tue - March 1, 2005 at 06:01 PM          


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