Reply To Tony Joy, North Florida District, U.S. Postal Service, June 25, 2012

VIA United Parcel Service
June 25, 2012

Mr. Tony Joy, Manager, Consumer & Industry Contact
North Florida District, U.S. Postal Service
Post Office Box 40005
Jacksonville, FL 32203-0005
RE: Your letter dated June 12, 2012 and Acting Manager Robert Henriques
Dear Mr. Joy:
Thank you for your letter of June 12, 2012. (Exhibit 1). Unfortunately your letter is not accurate
with regard to the actions of acting manager Robert Henriques and my complaint against CPU
Countryside and Koni Updyke. (the complaint). Please be advised that Mr. Henriques did not
call me on May 10, 2012, did not discuss my complaint, and did not provide his personal
contact information in the event you have further issues you would like to relay.
Mr. Henriques did not discuss my complaint during his initial call May 14, 2012. When I
requested a response to my complaint by follow-up letter, Henriques refused to discuss the
complaint, and made offensive comments during his telephone call to me at home the following
day. Enclosed is a CD containing a recording of the call, along with two earlier calls. Henriques
is adamant that he has no obligation, nor intention, of ever discussing the complaint with me.
Henriques then falsely accused me of inappropriate behavior and hitting on CPU
Countryside employee Sue.
My complaint accused Koni Updyke of defamation, dishonesty, unprofessional behavior, failing
to provide an accurate money receipt for postage, and creating a hostile environment that
wrongfully interferes with my use of the post office, and other issues. Statements by Henriques
to me on June 19th suggest that Ms. Updyke has continued to defame me in an effort calculated
to damage my reputation, intimidate me, and obstruct inquiry into her wrongdoing. Worse,
Henriques is not objective, and has not made an honest effort to investigate my complaint.
The United States Postal Service is an independent part of the executive branch of the
Government of the United States. (39 U.S.C. 201). Mr. Henriques investigation of my
complaint was made pursuant to that jurisdiction. Therefore Ms. Updykes false statements, if
substantiated, may violate 18 U.S.C. 1001(a), making false statements, and show that she is not
fit to operate a CPU.
In support of the above you will find voice recordings of telephone calls by Mr. Henriques to me
at my home, in .wav format on the enclosed CD. You can play the CD on a computer using
Windows Media Player or similar program.
All calls made to my home office business telephone extension (352) 854-7807 are recorded for
quality assurance purposes pursuant to the business use exemption of Florida Statutes chapter
Mr. Tony Joy, Manager, Consumer & Industry Contact June 25, 2012
North Florida District, U.S. Postal Service Page - 2
934, section 934.02(4)(a)(1) and the holding of Royal Health Care Servs., Inc. v. Jefferson-Pilot
Life Ins. Co., 924 F.2d 215 (11th Cir. 1991).
Mr. Henriques made the following three (3) telephone calls to me at home:
May 14, 2012, at 1:32 p.m. (length of call, 2 minutes, 21 seconds)
June 13, 2012, at 8:50 a.m. (length of call, 2 minutes, 42 seconds)
June 19, 2012, at 2.38 p.m. (length of call, 7 minutes, 39 seconds)
On the enclosed CD you can listen to Mr. Henriques speaking with me. This allows you to hear
exactly what Henriques said during our conversations. The following is a brief summation of
each call, as I have not yet ordered the transcripts.
Telephone call by Robert Henriques to Neil Gillespie, May 14, 2012, 1:32 p.m.
Mr. Henriques initially spoke with me regarding the complaint by telephone May 14, 2012 at
1:32 p.m., not May 10, 2012 as stated in your letter. The call was 2 minutes, 21 seconds long. As
shown on the recording, Mr. Henriques began the call as follows:
I havent addressed anything yet with Miss Koni at the post office out there by where
you live, but, ah, one of the things that I did see on here was you were wondering if you
could make arrangements to pick up undelivered mail or something we attempted
delivery other than the Countryside post office, is that correct?
Mr. Henriques went on to discuss delivery of my mail to the Paddock branch instead of CPU
Countryside. Mr. Henriques concluded by stating and like I said, the other stuff I have not
addressed with the contract station out there, Ill probably get with the postmaster and then, ah,
well, well talk with Ms. Updyke about this stuff too.
Telephone call by Robert Henriques to Neil Gillespie, June 13, 2012, 8:50 a.m.
On June 13, 2012 at 8:50 a.m. Mr. Henriques telephoned me at home in response to my letter of
June 12, 2012 about an attempted delivery of certified mail. (Exhibit 2). The call was 2 minutes,
42 seconds long. The letter stated:
Dear Mr. Henriques:
Enclosed is a copy of a notice from the post office about an attempted delivery of
certified mail, item no. 7196 9006 9296 0216 1259. I was not home at the time of
attempted delivery. The notice directs me to pick up the mail at CPU Countryside, Yours
Truly Cards & Gifts.
As you know from my letter to you dated May 8, 2012, and our subsequent phone call, I
do not patronize CPU Countryside, Yours Truly Cards & Gifts.
Kindly advise how I can obtain this certified letter without going to CPU Countryside,
Yours Truly Cards & Gifts. Thank you.
As shown by the recording, Mr. Henriques agreed to have the certified letter for pickup at the
Paddock branch the next morning. (June 14, 2012). Henriques also said Ill instruct your letter
carrier too, for anytime we receive something for you, if you want, if we make a physical attempt
and youre unable to sign for something, cause youre not home, we can hold it here at the
Paddock Branch, Ill, Ill request she does that for you as well if you like, to which I agreed.
However when I tried to get my mail at the Paddock branch June 14, 2012 at 3:48 p.m., the
certified letter was not there, it was at CPU Countryside according to Mr. Henriques. Once again
I reiterated to Henriques that, under no circumstance, will I go to CPU Countryside to pick up
mail. Henriques blamed the problem on another postal employee who mistakenly sent the letter
back to CPU Countryside. Mr. Henriques said the certified letter would be back at the Paddock
branch June 15, 2012 by 9:00 a.m., and I agreed to make another trip to get my mail.
When I arrived at Paddock June 15th after noon, I did not have the certified mail notice, because
Mr. Henriques took it from me the day before. This caused further delay and confusion. Finally
postal employee Mike produced the certified letter at 12:23 p.m. During the transaction Mike
directed me to CPU Countryside next time. This in turn led to more questions by Mike when I
told him that I do not patronize CPU Countryside. Mike responded that the post office does not
adequately check the background of CPU operators, or words to that effect.
Telephone call by Robert Henriques to Neil Gillespie, June 19, 2012, 2.38 p.m.
On June 19, 2012 at 2:38 p.m. Mr. Henriques telephoned me at home in response to my letter of
June 19, 2012 wherein I inquired about the status of my complaint. (Exhibit 3). The call was 7
minutes, 39 seconds long. The letter stated:
Dear Mr. Henriques:
When can I expect a response to my complaint made May 8, 2012 against Koni Updyke
and CPU Countryside? When you initially called me May 14, 2012 at 1:32 p.m. you said
you had not yet addressed the matter with Updyke. When we spoke again June 13, 2012
at 8:50 a.m. you did not indicate whether you had addressed the matter with Updyke.
Have you competed your inquiry into my complaint? If so when can I expect a
response?
Mr. Henriques was hostile and personally insulted me as shown by the recording. Henriques
refused to discuss the substance of my complaint against Koni Updyke. When I asked about
Sues threat of litigation against me, Henriques said that would be between you and her.
Henriques made false accusations against me, including, And I heard that your behavior was
inappropriate as well. When I asked Henriques to explain, he said I had heard that you were
hitting on her. When I denied the accusation, Henriques said Thats what I had heard, and
Im just telling you what I heard. When I asked who told him, Henriques said I was told by
Koni. When I asked for an explanation of what he meant by hitting on, Henriques said Well
Im not gonna explain it because I dont know much about it, thats what I had heard, that
comment was made to me, so I really dont know the ins and outs, nor do I care to know the ins
and outs...
I told Mr. Henriques I do not feel this matter is resolved, to which he responded thats fine.
When I suggest a further complaint, he said thats fine, you have every option to do so.
We discussed the ongoing problem of getting my certified mail that is ordinarily handled by
CPU Countryside, a problem created by Updykes unprofessional behavior. Updykes
misconduct has disrupted the normal flow of mail internally, causing contagion at Paddock. For
example, postal employee Mike wanted an explanation from me as to why I did not pick up my
certified mail at CPU Countryside. So this issue is not resolved, and continues to cause extreme
aggravation. Mike also said the post office does not adequately check the background of CPU
operators. I would add that there does not appear to be any hiring standards for CPU employees,
any of whom could have a criminal record, drug addiction, disability (like Sue) or other issues.
Because of the foregoing, I notified Mr. Henriques by letter dated June 25, 2012, not to
telephone me anymore, but to communicate by letter. (Exhibit 4). The letter states in part:
Dear Mr. Henriques:
You are hereby notified not to call me at home on the telephone, effective immediately.
Furthermore, I do not want face to face communication with you, or email from you. This
is in response to your inappropriate and insulting telephone call to me June 19, 2012.
You may communicate with me by letter through the United States Postal Service mail.
The letter also requests an accurate receipt for postal services, and copies of surveillance video.
Contract post offices, closing faster than they open
The website Save the Post Office published January 29, 2012 Contract post offices, closing
faster than they open, available at the link below, and herein as Exhibit 5.
http://www.savethepostoffice.com/contract-post-offices-closing-faster-they-open
The story noted the following about CPUs: Contract post offices look like a cheap and easy way
for the Postal Service to outsource its retail postal business.
But contract post offices are not the panacea that postal management, big mailers, and
advocates of privatization would like to think they are. They have many problems, and their
numbers just keep declining. During fiscal year 2011, the Postal Service opened 144 contract
postal units, but it closed 259 of them.
But contract units have a number of problems, and their number has been steadily declining for
a long time. In 1970, there were 7,241, and in 2010, there were 3,694. After the openings and
closings in 2011, there are 3,519 contract units remaining. That represents a total decline of over
50%, and an average of about 90 closings a year.
The Postal Service didnt say why so many contract units had closed, but the reasons arent a
mystery. It's difficult for the USPS personnel in the host post office to do proper oversight since
they arent there on the premises of the CPU Its sometimes even a problem collecting all the
money thats due to the Postal Service.
As a USPS OIG report entitled High-Risk Contract Postal Units notes, the host post offices
often did not collect all the cash the contract units had taken in on postal business, and the CPUs
sometimes disbursed USPS funds in an unauthorized fashion. The OIG found nearly $100,000
in uncollected funds and unauthorized disbursements at eight of the CPUs it reviewed. As of
December 31, 2008, says the OIG, there were over $200,000 in uncollected stamp credit
shortages at CPUs nationwide, and another $136,000 apparently uncollected from CPUs that had
closed. Asked about the problems, the personnel at the host post offices attributed these issues
to employee turnover, inadequate training, and other higher priority duties at the business
operating the CPUs.
Bertram Cooper v. U.S. Postal Service, 577 F.3d 479 (2009)
Argued March 20, 2009 - Decided August 20, 2009
http://scholar.google.com/scholar_case?case=8823295463556297133
In Cooper v. U.S. Postal Service, the Court found Cooper successfully raised an Establishment
Clause challenge to religious displays at a contract postal unit. I am not an attorney and did not
attend law school, and this is not legal advice. But my laymans reading of the case shows
Plaintiff Bertram Cooper alleged discomfort with encountering religious materials displayed at
the Manchester CPU and sued the United States Postal Service, et al., for declaratory and
injunctive relief. The Court found that the CPU was a state actor under the Public Function Test.
CPU Countryside and Updyke would also be state actors under the Public Function Test. And
Mr. Henriques and the United States Postal Service, et al., are state actors.
The Cooper Court referenced the Contract Postal Unit Operations Guide and noted CPUs are
regulated by these few guidelines, which are mainly words of encouragement. Classified post
offices, on the other hand, are governed by exacting regulations. The Court also found as a
factual matter, All money collected at the CPU is the property of the Postal Service,
As it applies to the behavior of Updyke and Henriques, the First Amendment prohibits the
making of any law abridging the freedom of speech, or prohibiting the petitioning for a
governmental redress of grievances. While Henriques did not define the term hitting on, in
normal usage this is private speech. As a state actor, Mr. Henriques exceeded his authority in
classifying private speech as inappropriate behavior absent good reason. Although Henriques
allegation is false, he nonetheless passed judgment as though it was true.
As for my complaint against CPU Countryside and Updyke, the complaint is my petition for a
governmental redress of grievances, to which Henriques, a state actor, has failed to properly
adjudicate. There may also be Fourteenth Amendment, and perhaps other Constitutional issues.
There may be pendant jurisdiction for defamation, intentional infliction of emotional distress,
and other claims against Ms. Updyke, CPU Countryside, Mr. Henriques, and the Post Office.
Cooper alleged discomfort with encountering religious materials displayed at the Manchester
CPU. My complaint against CPU Countryside and Updyke states in part:
It appears that Koni Updyke did not maintain my confidence, and instead maliciously
told Sue that I accused her of stealing money from CPU Countryside. As a result of
Updykes dishonesty, she has created a hostile environment at CPU Countryside between
me, Sue, and other employees. This calls into question Updykes judgment and veracity.
Koni Updyke has wrongfully interfered with my use of the United States Mail. I have no
confidence in CPU Countryside or Koni Updyke to act as an agent of the U.S. Postal
Service. In my opinion Updyke is a dishonest and malicious person. As a result of
Updykes mendacity, I have been threatened with a lawsuit. The threat of litigation puts
me in fear, as it would any reasonable person. Even a baseless lawsuit can bankrupt a
person, and inflict significant emotional distress. In addition, as of today, Updyke has not
provided me an accurate receipt for my Priority Mail postage of March 13, 2012.
Given Mr. Henriques failure to properly investigate and discuss my complaint, I question his
motives in covering-up and excusing wrongdoing at CPU Countryside by Koni Updyke.
Request for Policy and Procedure Information
Mr. Joy, this is a request for the policy or procedure that the U.S. Postal Service would follow in
a situation similar to mine, where CPU Countryside did not provide me an accurate receipt for
postal services when I brought the matter to the attention of Koni Updyke. Also, kindly explain
how this complaint process is supposed to work, with citation to policy and procedure.
Back on May 3, 2008 I was shortchanged $30 at the Paddock branch when clerk no. 14 failed to
provide me the cash-back on a debit card transaction. My notes show that I called Paddock and
spoke with Daria when I noticed the money was missing. Daria said she would count the drawer
at the end of the shift. Later that day Daria called and said the drawer was $30 over, and I can
come get my money. The incident was handled professionally, I believe, because the Post Office
has adequate training and procedures in place. From what I see at CPU Countryside, there is no
similar training and procedures in place. Instead Updyke operates her CPU according to her own
personal tendencies that are immature and unprofessional.
Another policy matter concerns CPU employees and/or Post Office employees who make
disclosures to customers about their personal lives, or engage in excessive dialog unrelated to
postal business. My purpose in going to the post office is to conduct postal business. CPU or
postal employees should not make disclosures to customers about their personal life. I do not
want the burden of the details of someones illness or disability. I am not a doctor and cannot
assist them with medical issues. Also, CPU or postal employees should not solicit customers for
money to support them, their animals, or any other cause. Please advise about any such policy.
Sue had a practice of making disclosures about her illness and disability. Sue also disclosed that
she is an animal hoarder, and that she kept forty (40) or so cats, and was unable to afford their
veterinary care. Animal hoarding involves keeping a higher-than-usual number of animals as
domestic pets without having the ability to properly house or care for them, while at the same
time denying this inability. Compulsive hoarding can be characterized as a symptom of mental
disorder rather than deliberate cruelty towards animals. - quoted from Wikipedia.
http://en.wikipedia.org/wiki/Animal_hoarder
This was also problem with Post Office employee at Paddock, although only with female
customers. While no longer works at Paddock, he spent inordinate amounts of time talking
to female customers, and his work station displayed a number of personal photographs. This
caused delays for other customers, and could lead to misunderstanding about being hit on.
Suggested Resolution
CPU Countryside and Koni Updyke have failed to provide me the basic and fundamental service
of effective and regular postal services required under 39 U.S.C. 101, Postal policy. Updyke
behaves like a high school bully and has impugned the good reputation of the Post Office. As set
forth in my complaint, Ideally the U.S. Postal Service will eliminate CPU Countryside and open
a real Post Office at this end of SW200 Ocala. If not, the Countryside franchise should be
awarded to a competent person. This area has grown in recent years and needs a real Post
Office due to the volume of mail and need for postal services that cannot be met by a CPU.
Koni Updyke wrongfully interfered with, and obstructed, my use of the United States Mail.
Updyke defamed me, harmed my reputation, and inflicted severe emotional distress upon me. I
cannot return to CPU Countryside because Updyke is dishonest. I believe, like any reasonable
person would believe, that Updyke would lie again to serve her own purposes. The next time
Updykes deceit may be more serious. For example, Updyke could falsely accuse me of
attempted robbery or some other crime. Updyke has shown callous disregard for the truth, and
disregard for the well-being of others, including me and CPU employee Sue.
I have no confidence in CPU Countryside or Updyke to provide me the basic and fundamental
service of effective and regular postal services. Given Mr. Henriques mishandling of my
complaint, and his hostile and insulting telephone call to me, I have no confidence in him either.
Mr. Henriques incompetence has spread this problem to Paddock where I have successfully
done postal business for years. Google maps shows a distance of 13.7 miles from my home to the
main Ocala Post Office at 400 SW 1st Ave. Ocala, requiring about a 30 minute drive depending
on traffic conditions. That is too far to travel. As a result I am now using United Parcel Service
for ordinary mail that requires tracking, which is an extra expense that I cannot afford.
A copy of this letter was provided to the American Postal Workers Union in furtherance of
establishing a real Post Office in the area of SW200 Ocala, one with APWU employees.
Thank you again for your consideration of this important matter.
Sincerely,
Neil J. Gillespie
8092 SW 115th Loop
Ocala, Florida 34481
cc: Mr. Patrick R. Donahoe
United States Postmaster General, U.S. Postal Service
Mr. Guy Cottrell, Chief Postal Inspector
U.S. Postal Service
Mr. Cliff Guffey, President
American Postal Workers Union, AFL-CIO
Mr. Robert Henriques, Acting Manager
United States Postal Service, Paddock Branch
The complaint and related documents are posted on Scribd at http://www.scribd.com/CPUfail
MANAGER, CONSUMER &INDUSTRY CONTACT
NORTH FLORIDA DISTRICT
~ UNITED STIlTES
I!a POSTIJL SERVICE
June 12, 2012
Neil J. Gillespie
8092 SW 115
th
Loop
Ocala, FL 34481-3567
Dear Mr. Gillespie:
Your correspondence copied to the Postmaster General, regarding your concerns with the Countryside
Contract Postal Unit and its employees, has been referred to this office for investigation and response.
Acting Manager Robert Henriques advises he spoke with you on May 10, 2012, and thoroughly
discussed your concerns. He provided his personal contact information in the event you have further
issues you would like to relay.
As with any service organization, quality customer service from professional, courteous, and friendly
employees is vital. We are always concerned when a customer is not satisfied with the way we conduct a
transaction or provide a service. Be assured this matter has received Mr. Henriques' prompt attention.
Mr. Gillespie, you are a valued customer, and we appreciate the opportunity to respond to your concerns.
As a customer, you have many choices and we must provide the level of professional service our
customers expect and deserve. We regret this experience, which does not re'Rect the service we want to
prOVide.
Please accept my apology as well as my thanks for bringing this matter to our attention. It is our desire to
provide the best possible service at all times, and every effort will be made to serve your future needs in a
manner more consistent with your expectations and our service objectives.
Sincer.. e_.IYJ " ~ ....
e-/;=/y
( !-)
Tony JOy
POST OFFICE Box 40005
JACKSONVILLE, FL 32203-0005
904/858-6522
FAX: 904/858-6521
1
June 12, 2012
4545 SW 60th AVE
Ocala, FL 34474-4301
Dear Mr. Henriques:
Enclosed is a copy of a notice from the post office about an attempted delivery of
certified mail, item no. 7196 9006 9296 0216 1259. I was not home at the time of
attempted delivery. The notice directs me to pick up the mail at CPU Countryside, Yours
Truly Cards & Gifts.
As you know from my letter to you dated May 8, 2012, and our subsequent phone call, I
do not patronize CPU Countryside, Yours Truly Cards & Gifts.
Kindly advise how I can obtain this certified letter without going to CPU Countryside,
Yours Truly Cards & Gifts. Thank you.
Sincerely,
Neil J. Gillespie
8092 SW 115th Loop
Telephone: (352) 854-7807
Email: neilgillespie@mfi.net
Enclosure
cc: local postal carrier, with enclosure
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June 18, 2012
4545 SW 60th AVE
Ocala, FL 34474-4301
Dear Mr. Henriques:
When can I expect a response to my complaint made May 8, 2012 against Koni Updyke and
CPU Countryside? When you initially called me May 14, 2012 at 1:32 p.m. you said you had not
yet addressed the matter with Updyke. When we spoke again June 13, 2012 at 8:50 a.m. you did
not indicate whether you had addressed the matter with Updyke.
Have you competed your inquiry into my complaint? If so when can I expect a response?
Thank you.
Sincerely,
Neil J. Gillespie
8092 SW 115th Loop
Telephone: (352) 854-7807
Email: neilgillespie@mfi.net
3
June 25, 2012
4545 SW 60th AVE
Ocala, FL 34474-4301
Dear Mr. Henriques:
You are hereby notified not to call me at home on the telephone, effective immediately.
Furthermore, I do not want face to face communication with you, or email from you. This is in
response to your inappropriate and insulting telephone call to me June 19, 2012. You may
communicate with me by letter through the United States Postal Service mail.
Kindly provide me the following:
1. An accurate receipt for my postal transaction with CPU Countryside March 13, 2012.
2. A copy of any security or surveillance video from CPU Countryside that shows my
transactions on the following dates:
a. March 13, 2012, sent Priority Mail, Delivery Confirmation, no. 0311 0240 0001 8153 1316.
b. On or about March 15, 2012 when I spoke with Koni Updyke about the foregoing transaction.
c. May 1, 2012 when CPU Countryside employee Sue twice interrupted my postal transaction,
directed me to another part of the store, verbally assaulted me, and threatened me with a lawsuit.
Sincerely,
Neil J. Gillespie
8092 SW 115th Loop
4
Published on Save the Post Office (http://www.savethepostoffice.com)
Home > Printer-friendly
January 29, 2012
Contract post offices look like a cheap and easy way for the Postal Service to outsource its retail
postal business. Just put the post office in a private business or community center, and don't
worry about paying rent or postal employees. There's still a post office in town, the Postal
Service has met its universal service obligation, and a lot of money has been saved.
But contract post offices are not the panacea that postal management, big mailers, and
advocates of privatization would like to think they are. They have many problems, and their
numbers just keep declining. During fiscal year 2011, the Postal Service opened 144 contract
postal units, but it closed 259 of them.
News of these additional openings and closings was revealed in materials submitted by the
Postal Service to the Postal Regulatory Commission (PRC) for its annual compliance report.
The document can be found on the PRC website (download the pdf here [1]), and a list of the
offices that have opened and closed is here [2].
A contract post office is an approved postal provider thats operated by a private business or
Contract post offices, closing faster than they open http://www.savethepostoffice.com/print/9802
1 of 4 6/24/2012 5:35 PM
5
community and not staffed by USPS workers. There are basically two types a contract postal
unit (CPU) and a community post office (CPO) and then there's the closely related village
post office (VPO).
According to the 2009 Postal Employees Guide to
Contract Postal Units [3], a CPU is a supplier-owned
or supplier-leased site operated by the supplier
under contract to the Postal Service to provide postal
services to the public at postal prices. A CPO is
similar it's a contract postal unit in which a small
rural community, rather than a local business,
assumes the responsibilities of providing postal
services.
Neither type of contract unit offers the full range of products and services available at a regular
post office, but for many communities, its better to have a CPU or CPO than no post office at
all. You can get a sense of just how much people can value a CPO in this great story [4] on
Going Postal [5] about one that closed earlier this month in Alplaus, New York, and here's
another [6] about a closing announced just a couple of days ago.
The Village Post Office [7] was the concept unveiled last summer along with plans to closing
3,652 post offices under the Retail Access Optimization Initiative (RAOI). Though the VPO just
sells stamps and flat-rate boxes, it was supposed to mitigate the loss of a post office for
thousands of small towns across America. However, at this point, only about eight VPOs have
been opened, and the Postmaster General, having discovered that many small towns dont have
a suitable place to locate a VPO, has backed off [8] the new concept.
News of so many contracted units closing in 2011 is somewhat
surprising, given that the Postal Service has been so intent on
shifting from government post offices to "alternative retail outlets"
like CPUs. After all, they cost very little to operate basically just
the wages for the USPS personnel responsible for overseeing the
contract unit from an official USPS "host" post office.
Contract units also appeal to the big mailers, which see them as a
money-saving alternative to post offices, and money saved means
lower postal rates. In its brief [9] to the PRC on the RAOI Advisory
Opinion, the direct mail company Val-Pak argued that contract
units were a valuable method of outsourcing the provision of retail
services because they reduce costs and improve service to
customers.
But contract units have a number of problems, and their number has been steadily declining [10]
for a long time. In 1970, there were 7,241, and in 2010, there were 3,694. After the openings
and closings in 2011, there are 3,519 contract units remaining. That represents a total decline
of over 50%, and an average of about 90 closings a year.
The Postal Service didnt say why so many contract units had closed, but the reasons arent a
mystery. It's difficult for the USPS personnel in the host post office to do proper oversight since
they arent there on the premises of the CPU Its sometimes even a problem collecting all the
money thats due to the Postal Service.
2 of 4 6/24/2012 5:35 PM
As a USPS OIG report entitled High-Risk Contract Postal Units [11] notes, the host post offices
often did not collect all the cash the contract units had taken in on postal business, and the
CPUs sometimes disbursed USPS funds in an unauthorized fashion. The OIG found nearly
$100,000 in uncollected funds and unauthorized disbursements at eight of the CPUs it
reviewed. As of December 31, 2008, says the OIG, there were over $200,000 in uncollected
stamp credit shortages at CPUs nationwide, and another $136,000 apparently uncollected from
CPUs that had closed. Asked about the problems, the personnel at the host post offices
attributed these issues to employee turnover, inadequate training, and other higher priority
duties at the business operating the CPUs.
One of the contract units that closed this year was in
Liebenthal, Kansas [12]. One day the post office was
open, and the next, it was closed, just like that, no
explanation. Months later, word came out that the
person running the community post office had
allegedly embezzled some funds.
Sometimes the Postal Service decides a contract
unit is more trouble than its worth, or it finds an
easier option like striking a deal with a local CVS
or bank to sell stamps. Sometimes the private
business itself chooses to terminate its contract with
the Postal Service because the amount of postal revenue being generated wasn't worth the
effort required by all the USPS paperwork and regulations. There's also a clause in the APWU
contract requiring 20 CPUs to close, presumably as a way of protecting union jobs (more on that
in the Going Postal article [4]). Or maybe the store just goes out of business, and thats the end
of the CPU, which seems to be the case with many of the CPUs on the 2011 closing list.
Another problem with a CPU is that the Postal Service or the business running it can
close one without going through any of the formal discontinuance process required for a regular
post office. A contract post office can be closed without notice to the community and without a
public meeting, and theres no appealing the decision to the PRC.
In any case, it doesnt look like CPUs or VPOs are going to be the wave of the future. For every
unit that was added last year, almost two closed. If the Postal Service is going to develop its
network of alternative retail outlets, theyre not going to CPUs or VPOs in small, independently
owned businesses. Theyre going to be Stamps-on-Consignment and Authorized Shipper
counters located in the big chains, like Wal-Mart, Costco, and CVS, and the range of products
and services is going to be pretty limited.
The Postal Service is a long way from making the traditional post office obsolete, no matter what
the leaders in LEnfant Plaza would like to think.
UPDATE: A couple of readers wrote in with more about why CPUs havent become more
widespread. Basically, they say, its because theres not enough money in running one to make
it worthwhile. In the past, most CPUs were paid a set annual amount, but now the Postal
Service is switching to a "performance based" system, i.e., the host business gets a percent of
the sales. The Postal Service tries to keep the percentage as low as possible, but it ranges from
6% to 10% of gross "walk-in" revenues (stamp sales, metered postage for packages, money
order fees, etc.).
The Postal Service provides basic equipment for the CPU, and the CPU provides the rest,
3 of 4 6/24/2012 5:35 PM
including furniture, a counter, cash drawer or register, and a postage meter, which is an ongoing
expense of about $20 to $30 every month. So, if a CPU brings in $2,000 a month in postal
revenue, and it has a good 10% contract, thats $200 a month. Out of that the business has to
pay for the time its employees spend helping to run the CPU, the postage meter, and other
operating supplies. Thats just not enough money to make the CPU a popular idea among
small businesses. Plus, the Postal Service keeps expanding other types of alternative retail
points, like stamps-on-consignment at supermarkets and pharmacies, which cuts into the CPUs
business.
(Photo sources: Contract offices closed in FY 2011: CPU in Country Store [13], Garrattsville,
NY; CPU in Coberly Drugs [14] in Hutchinson, Kansas; CPU in Ellas Interiors [15] in Tomball,
Texas; CPO in Liebenthal, Kansas [16].)
Garratssville NY-540x405.jpg [17]
When the post office is closed, the flag comes down. When the human side of
government closes its doors, were all in trouble.
Jennings Randolph, U.S. Senator from West Virginia, 1958-85
Source URL: http://www.savethepostoffice.com/contract-post-offices-closing-faster-they-open
Links:
[1] http://www.prc.gov/Docs/80/80090/ChIR1.Q41-42.xls
[2] http://www.savethepostoffice.com/contract-post-offices-opened-and-closed-fy-2011
[3] http://www.apwu.org/news/webart/2009/09-076-consolidatingstations-090701-pub156.pdf
[4] http://colossus-of-roads.blogspot.com/2012/01/round-of-alplaus.html
[5] http://colossus-of-roads.blogspot.com/
[6] http://austin.ynn.com/content/top_stories/282701/temple-residents-fight-to-keep-post-office-open
[7] http://www.savethepostoffice.com/post-topics/village-post-office
[8] http://www.reuters.com/article/2011/11/02/us-usa-postal-village-idUSTRE7A12GJ20111102
[9] http://www.prc.gov/Docs/77/77416/VP%20N2011-1%20Initial%20Brief.pdf
[10] http://www.fas.org/sgp/crs/misc/R41950.pdf
[11] http://www.uspsoig.gov/foia_files/FF-MA-09-003.pdf
[12] http://www.savethepostoffice.com/mystery-love-valley-emergency-suspension-liebenthal-ks
[13] http://www.flickr.com/photos/juneny/4607596488/
[14] http://www.hutchmarketplace.com/marketplace/businesses/coberly-drug-co/
[15] http://activerain.com/blogsview/338410/ella-s-interiors-gifts-tomball-post-office-close-to-spring-tx-
[16] http://www.legendsofkansas.com/liebenthal.html
[17] http://www.savethepostoffice.com/sites/default/files/Garratssville NY-540x405.jpg
4 of 4 6/24/2012 5:35 PM

Reply To Tony Joy, North Florida District, U.S. Postal Service, June 25, 2012

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Reply To Tony Joy, North Florida District, U.S. Postal Service, June 25, 2012

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