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Alaska District's hope that facilities in the downtown area may be leased for less than $3 million, thus eliminating the need for approval from the Capital Investment Committee. Should this be possible it is hoped that this project could be approved by the Western Region this winter.

CONCLUSION

There is little question that the facilities the Alaska District Office wishes to have built or leased in the Fairbanks area are vitally needed. Based on this report Senator Stevens did contact the Postmaster General expressing his strong belief in the necessity to start construction or approve lease agreements on these facilities as soon as possible. In addition, although not directly related to Fairbanks but important for the whole mail delivery system for Alaska, is the early construction of the Anchorage-Spenard Carrier Station in Anchorage is necessary. The site for this needed facility has been purchased, the only remaining obstacle for construction is approval at the Washington headquarters of the U.S. Postal Service. This site is centrally located and is ideal for relocating the Carrier Station from its present leased and totally inadequate facilities. Senator Stevens has also urged early approval of this Alaskan project.

It should be kept in mind that although these projects are large financial commitments by the U.S. Postal Service and that Alaska has received numerous modern facilities recently, Alaska has long suffered with inadequate facilities because of the high cost of construction. However, because of the energy crisis and Alaska's important role in solving America's energy needs, the Postal Service can no longer ignore the absolute need for essential new facilities. Alaska will continue to play an important role if not an essential role in meeting the energy needs of this nation. The Postal Service has an equally important role in providing the necessary communications system by which Alaskans can communicate with one another and those outside.

DISTRICT OFFICE, Anchorage, Alaska, October 8, 1976.

Mr. WAYNE SCHLEY,

Office of Ted Stevens, U.S. Senator,
Washington, D.C.

DEAR WAYNE: The following comments are suggested for an addendum to your report which was prepared in 1974.

Since the time the report was prepared, the Postal Service has made considerable progress to resolve some of their operating problems in Alaska. In Anchorage, a new downtown station with 15,156 square feet of space has been provided to serve the public. This is a modern facility with an increased number of boxes convenient to the business section. Completion of the new downtown station allowed for improved quarters for the carriers serving the area. When the Postal Service vacated the old Federal Station quarters, the carrier operation was relocated to that space.

A new General Mail Facility at Anchorage was activated on September 11, 1976. The new GMF is located in the proximity of the International Airport and provides approximately 157,000 square feet. The facility will be a mechanized unit providing for unloading vans through a mechanical system that will reduce damage and labor costs. Additional mechanization to handle sortation of letters and parcels will be provided in the near future. Contracts for this equipment have been let.

A contract for a new Vehicle Maintenance Facility has been awarded and construction is underway at this time. The Vehicle Maintenance Facility is on property purchased to house the Vehicle Maintenance Facility and the Carrier Facility. Construction of the Carrier Facility has been deferred for the present. New facilities have been constructed at Barrow, Valdez, Glennallen, Soldotna and Homer, Alaska. Valdez and Glennallen have been highly impacted by the pipeline construction. Growth in the Barrow area as a result of the Native Land Claims Settlement and establishment of the North Slope Borough outdated the old postal facility. The new facility was placed in operation in the summer of 1976. Soldotna and Homer have also experienced growth to the extent the old facilities were inadequate to meet the community needs.

Projects are in the planning stages for three new facilities for the Fairbanks area. A new Downtown Station, College Branch and a new GMF.

Employee turnover in both Anchorage and Fairbanks has remained high. The current rate is 72 percent for Fairbanks and 42 percent for Anchorage. The efficiency of the Postal Service is impacted a great deal by the high turnover rate. Pipeline construction activity will be winding down in the near future. Throughout the entire construction period the Alyeska Service Center at Fairbanks has done a very good job in handling mail for the construction camps along the route. Complaints from individuals have been received; however, the number of complaints in comparison to the total scope of the project are minimal.

In order to meet the needs of camps located at the Prudhoe Bay site, the U.S. Postal Service opened a contract branch in conjunction with the Alaska National Bank of the North to provide service that was not available through the camps. In conclusion, the Postal Service has reacted to the needs of the impacted areas and growth throughout the State in a very real and professional manner.

I. W. HANSON,
District Manager.

APPENDIXES

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