PRC Issues Advisory Opinion Affirming Customer Rights in U.S. Postal Service Retail Office Closing Decisions

Press Release from Postal Regulatory Commission
March 10, 2010

Washington, DC – The Postal Regulatory Commission today issued an Advisory Opinion to the U.S. Postal Service in its “Station and Branch Optimization and Consolidation Initiative” in Docket N2009-1.

The Postal Service is required to seek an Advisory Opinion if its actions constitute a nationwide change in service levels. This advisory opinion responds to the Service’s 2009 request for an opinion on its Initiative to review more than 3,000 stations and branches nationwide for possible closure. The Postal Service reports that (as of February 2010) only 162 remain under review; however, the program will be applied to additional retail facilities in the coming months.

The Commission gathered a wide range of input from the public in hearings and written submissions before reaching its conclusions.

“I urge the Postal Service to take our recommendations to heart and implement them quickly in order to respond to public concerns and build goodwill. This public process is an example of how the Postal Service’s and the Commission’s complementary authorities improve policy in an open and transparent manner,” said Chairman Ruth Y. Goldway.

The Commission affirms the Postal Service’s authority to adjust its retail network but recommends several improvements. The Commission finds that the current ten days advance customer notice is insufficient and limits opportunities for community consultation. Further, inconsistent financial and operational analyses impair evaluations of facility closures and consolidations. The Commission finds that standardized review procedures should be developed and consistently applied nationwide to ensure adequate and efficient service levels and comply with statutory guidelines.

“The Postal Service’s nomenclature differentiates among stations, branches and post offices. But customers do not recognize any difference. They expect and deserve the same public notice, opportunity for comment and rights of appeal if and when postal facilities they depend on may be closed.” Goldway said.

The key recommendations in the Advisory Opinion are:
1) The Postal Service should articulate its Initiative’s objectives more clearly
2) Postal Headquarters should develop and disseminate guidance for local managers
3) The method used for evaluating proposals for consolidations and closures should include a separate category for community issues
4) Public notice should be improved:

  • By providing actual (as opposed to “constructive”) notice; and wherever possible, expanding methods of providing public notice
  • Through longer notice and comment periods
  • By soliciting public comments earlier in the process

5) Financial analysis of station and branch operations should be improved
6) The Postal Service should implement uniform procedures for closing or consolidating all types of retail facilities – post office, station or branch
7) Customers should be assured that the Postal Service will adhere to its published procedures
8) The Postal Service should coordinate this Initiative with any other initiatives affecting access (such as removing collection boxes or changing retail hours)

Quick links to key documents
Postal Regulatory Commission Chairman’s letter to the President and Congress
The Commission’s Advisory Opinion
Field hearing transcripts: The Bronx, New York
Independence, Ohio

Dear Members of Congress:

Today, the Postal Regulatory Commission released an Advisory Opinion to the Postal Service providing
guidance on the process the Postal Service uses to close retail facilities it calls “stations” and “branches.”
These facilities appear no different to the consumer than postal “offices,” but consumers were afforded
less notice when these facilities were slated to be closed. The Commission’s recommendations affirm
customer rights.

A broad cross-section of citizens have expressed concerns about postal facility closings as well as other
anticipated cost-cutting reductions in service. Indeed, the Postal Service announced last week a number
of additional proposed changes in ser vice, including potential closings of many more retail outlets. The
Commission recognizes the pressures the Postal Service faces in terms of reduced demand and its desire
to realign its network. Even in this context, howe ver, all postal customers should receive due
consideration, regardless of the designation of their retail facility as a station, branch, or office.

ing the process by which the Postal Service notifies the public about possible closures of retail offices nationwide pursuant to its “Station and Branch Optimization and Consolidation Initiati ve.”

The key recommendations in the Advisory Opinion are:

1) The Postal Service should articulate its Initiative’s objectives more clearly
2) Postal Headquarters should develop and disseminate guidance for local managers
3) The method used for evaluating proposals for consolidations and closures should include a
separate category for community issues
4) Public notice should be improved:
• By pro viding actual (as opposed to “constructive”) notice; and wherever possible,
expanding methods of providing public notice
• Through longer notice and comment periods
• By soliciting public comments earlier in the process
S) Financial analysis of station and branch operations should be improved
6) The Postal Service should implement uniform procedures for closing or consolidating all types
of retail facilities – post office, station or branch
7) Customers should be assured that the Postal Service will adhere to its published procedures
8) The Postal Service should coordinate this Initiati ve with any other initiatives affecting access
(such as removing collection boxes or changing retail hours)

The Postal Service is a pillar of our democracy; it is empowered by the Constitution to foster the flow of
information and bind the nation together. Even in these uncertain times, it is imperative to exercise the
most conscientious stewardship of this vital piece of our nation’s infrastructure. Such responsibility
includes providing the public with a meaningful opportunity to respond to the planned closing of a
facility. Our citizens deserve no less.

From discussions that my colleagues at the Commission and I have had with some of you and your staff,
we know of your particular interest in these matters. If you have any questions or need additional
information on the Advisory Opinion or other Commission and postal matters, we would be happy to
assist you. Please contact me at your convenience

Ruth Y. Goldway

Chairman