Title
a. Receive a report on United States Postal Service’s Intelligent Mail Barcode system; and
b. Approve updating the County’s Mail Services machinery with the new Intelligent Mail Barcode system to allow for the continuation of discounts for full-service mailings by January 2013.
Report
RECOMMENDATIONS:
It is recommended that the Board of Supervisors:
a. Receive a report on United States Postal Service’s Intelligent Mail Barcode system; and
b. Approve updating the County’s Mail Services machinery with the new Intelligent Mail Barcode system to allow for the continuation of discounts for full-service mailings by January 2013.
SUMMARY/DISCUSSION:
On March 2, 2012, the United States Postal Service (USPS) published a proposed rule in the Federal Register (77 FR 12764-12769) to discontinue price eligibility for Postal Numeric Encoding Technique (POSTNET) barcodes. POSTNET barcodes were USPS developed methods to encode Zone Improvement Plan (ZIP) code information on mail that could be read for sorting by automated machines. For automation letters and flats and for Qualified Business Reply Mail (QBRM), an Intelligent Mail Barcode (IMB) will be required. Intelligent Mail is not just about barcodes, as the USPS has developed this new system to enable end-to-end visibility and reporting on mail as it travels through the mail system. On May 3, 2012, the POSTNET Barcode discontinuation final rule was posted on the Federal Register (77 FR 26185-26191) which amends 39 CFR Part 111. The final rule discontinues the automation price eligibility based on the use of POSTNET barcodes on all types of mail effective January 28, 2013. Currently, the County receives discounted pricing for using POSTNET barcode equipment associated with full-service mail which equates to $0.10 per piece of mail processed. In FY 2011-12, the County’s Mail Service staff processed 545,898 pieces of mail through POSTNET which resulted in $56,819 in postage savings. Staff recommends replaci...
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