AUSPL President Morgan Wolaver welcomed members to AUSPL Conference 2014 on March 28, 2014, held at the Astor Crowne Plaza New Orleans-French Quarter.
For the first time, two Congressmen addressed the membership, Congressman Blake Farenthold (R-TX) and newly-elected Congressman David Jolly (R- FL). Representative Farenthold, Subcommittee Chairman on the House Oversight Committee and co-sponsor of H.R. 2748, The Postal Reform Act of 2013, discussed some of the points of the bill and encouraged lessors to contact Congress to push for postal reform legislation.
On March 11, 2014, David Jolly won a special election in Florida’s 13th Congressional District to succeed the late Representative Bill Young. Previously, David served as General Counsel to Representative Young. Representative Jolly is focusing on obtaining swift passage of postal reform legislation.
One of President Morgan’s initiatives is educating Congress, especially members of the Rural Caucus, about the value of the real estate leasing program to the Postal Service. Recently, Morgan and members of the board told the legislators in Washington, D.C. the leasing program is the most flexible and cost-efficient option for universal service, especially in rural communities. Alan Suskey, our representative in Washington, D.C., discussed the progress of postal reform and the challenges that lie ahead for passage during the 113th Congress. The substance of the bills now in the House and Senate are more closely aligned, but differences still remain. AUSPL is planning a “Hill Day” this summer and will continue to push legislators to enact postal reform.
Tom Samra, USPS Vice President, Facilities, began his speech with a statement about the financial stability of the Postal Service: “The USPS ended the first quarter of its 2014 fiscal year (October 1, 2013 – December 31, 2013) with a net loss of $354 million. This marks the 19th of the last 21 quarters that it has sustained a loss,” he says.
“Though the Postal Service has been able to grow revenue by capitalizing on opportunities in Shipping and Package Services and has aggressively reduced operating costs, losses continue to mount due to the persistent decline of higher-margin First-Class Mail, stifling legal mandates and its inflexible business and governance models,” he continues.
“Without legislative change, the Postal Service will be forced to default on another required $5.7 billion retiree health benefits prefunding payment due September 30, 2014, because it will have insufficient cash and no ability to borrow additional funds at that date. In the event circumstances leave the Postal Service with insufficient cash, the Postal Service would be required to implement contingency plans to ensure all mail deliveries continue,” he says. “These measures could require the Postal Service to prioritize payments to its employees and suppliers ahead of some payments to the federal government, as has been done in the past.”
EMCOR and maintenance issues are hot topics for our lessors. During the afternoon session, President Morgan Wolaver and AUSPL Vice President Gary Phillips led a teleconference call with Michael Goodwin, USPS Manager, Facilities Repair and Alteration, and Kim Barnes, USPS Landlord Maintenance Program Manager. Michael is responsible for assuring the postal inventory of existing owned and leased buildings are kept in good repair, including identifying, prioritizing and budgeting for building repairs. Kim manages lease contracts to assure landlord maintenance obligations are being fully enforced, determines maintenance responsibilities for USPS and landlords per the lease, and oversees the activities of contractors (EMCOR) involved in landlord maintenance.
Vice President Gary showed an informational video about EMCOR. During the conference call, Michael and Kim discussed the roles and responsibilities of the Call Center, Repair and Alteration Teams and the Landlord Maintenance Team, as well as the role of EMCOR, which is a subcontractor under CBRE. Custodial issues, including lawn maintenance and building cleanliness, are handled at the local post office level, say Michael and Kim. After answering audience questions, Michael and Kim asked landlords to keep their contact numbers updated, to keep their buildings safe, secure and to prepare for hurricane season. Lastly, they recommended lessors keep a list of contractors available in case of emergency.
Special thanks to Atlanta Postal Credit Union, luncheon sponsor, and to all the speakers, workshop presenters, attendees and the board who made Conference 2014 such a success.