CFRCCSD and CFR both supported the goal of getting the CCSD to trim expenses. Here’s just one example of how easy it would be to do:
I just submitted a letter to CCSD Director Muril Clift bringing to his attention significant immediate savings that can be realized in postage expenses. The CCSD mails ratepayer correspondence, such as the bi-monthly bills, at full first class rates (42 cents) from the Paso Robles PO. In addition, the mailings are contracted out to Accurate Mailing Service of Paso Robles. I’ve researched the issue with the Cambria PO and discovered that the CCSD qualifies for a reduced mailing rate of 29.3 cents per letter, or a savings of approx. $500 per bi-monthly billing cycle ($3000 per year). The costs involved in getting this rate are an initial $180 permit fee and an annual $180 permit renewal fee. Well worth the cost! Shouldn’t the CCSD staff, which has grown significantly during recent years, be able to mail the bills? If the workload crunch every two months is too much, why not split the mailing so that 1/2 of the ratepayers get a bi-monthly bill each month? Additional postage savings can be realized on all other CCSD mailings, such as the annual fire clearance notices and the CCSD newsletter.
Muril has agreed to look into the matter and get back to me. If he follows through, as I believe he will, I’ll let you all know the outcome. Hopefully asking the questions regarding cost containment will yield results. I must, however, ask the following question. Isn’t this the job of the CCSD Manager?
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Way to go, Rich. And yes. COST REDUCTION is the job of the CCSD Manager …..IF she cares about being fiscally responsible. But why should she? She has never been ASKED or REQUIRED to discover and implement cost saving initiatives by her bosses, the CCSD board. I did not see it as any goal or objective for the CCSD Board either. I would think that a CCSD manager paid at the top level of her range would be savvy enough to create these type of cost reduction initiatives on her own.
This lack of initiative may be attributable to a career spent in Government administration where there is no accountability for performance and no reward for cutting costs.
I guess we get the kind of manager we accept.
Here’s the text of an email message I just sent to Muril to update him on this situation. I’m confident that he will follow-up with CCSD, as he has done in the past.
“Muril, at long last I received the necessary information from Michael Graybill, Mailing Standards Specialist, of the USPS to be able to address this issue more completely. If CCSD requires any further information or clarification from the USPS I was encouraged to have them contact the Mailing Requirements Department at 661-775-6661. This material is in response to my earlier inquiry of you, and the CCSD Staff’s response to the General Manager that basically said that what they are doing is the “right thing to do” and the most fiscally responsible.
Attached please find the USPS Quick Service Guide 230d, as well as CCSD’s earlier response. The USPS document shows that the CCSD can qualify for a postage rate of $.324 for first class letters and $.199 for postcards, resulting in significant postage savings. (These rates are slightly higher than my earlier information due to postal rate increases.) Just for the normal bi-monthly bills the postage savings is approximately $400.00 per mailing. Additional mailings, such as the annual fire clearance notification and quarterly newsletters, would yield additional savings. These savings can be achieved whether or not the CCSD continues the practice of using a contract mailing service. In addition, I could find no reason for why CCSD has not already been receiving the reduced postage benefit while using the contract mailing service. If the CCSD was to begin mailing it’s own permit mail it would be required to pay the annual $180 presort permit mailing fee. Lastly, I’ve encouraged the CCSD to market the direct-debit bill pay feature that they are currently capable of handling. From the numerous Cambrians that I’ve talked to, very few of them are aware of this time and cost savings option. If used in conjunction with email notices instead of mailed bills, as is standard practice with most business and utilities these days, in addition to curbing postage costs, this option could significantly reduce payment processing costs. I’ve been personally told by CCSD that the email notice versus a mailed notice, as well as no return envelope with a mailed notice for direct-debit customers, is a “can’t do” option.
The CCSD in it’s response said that it only has a manually fed postage meter, and it has deemed it not cost effective to purchase one. Using the postal permit process does not utilize a postage meter. Instead, the permit number is preprinted on the envelopes at no additional cost. The postage fees are collected at the applicable rate when the letters are mailed. To receive the benefit of the reduced postage rate, CCSD must ensure that the mailing is at least 500 pieces and the mail must be bar-coded on either the inserted mail, with the barcode showing through the window envelope, or on the outside of the envelope. Per the USPS there are Windows-based programs readily available that pre-print the bar code on the billing invoice so that it will display through the mailing envelope. Even if the CCSD’s prior computers would not have been compatible with such a program, which I seriously doubt, now that there are 21 brand new computers I’m confident that their hardware is capable of this routine process.
The last paragraph of the CCSD’s response is a totally unfounded attack on presorted first class mail. I have confirmed with the USPS that this type of mail is treated identically to full price first class mail. They, Mr. Graybill and Cambria Postmaster Gerry Kalar, confirmed that speculation about delayed delivery and non-return of undeliverable mail is baseless.
Frankly, instead of the “can’t do” mentality at CCSD, it’s time for them to develop a “can do” attitude and save some ratepayer money. “