As you know, I have been quite concerned over the impact of the trans-Alaska pipeline on the economy of my state. One of my specific concerns has been the impact the construction of the pipeline has had on the mail service to Alaskans and to the men and women working on the pipeline itself.

The Post Office and Civil Service Committee agreed with me on two occasions to send a Committee staff member to Alaska to look into the complaints and suggestions regarding the Postal Service as well as to obtain basic information which would help the Committee and the Postal Service solve the problem of economic impact in other areas of this nation as we search for energy independence. I am submitting to you the reports written as a result of these staff investigations.

These reports were not written with the .thought of having them published but rather were written as information papers for me, members of the Post Office and Civil Service Committee, and appropriate postal officials. Nevertheless, I feel that those interested in postal history and history of Alaska as well as those who may be compiling a history of ' the trans-Alaska pipeline would find these reports valuable. Consequently, I am now making them available to you for publication should the Committee feel it proper and beneficial.

STAFF REPORT AND OBSERVATION ON THE IMPACT OF THE TRANS-ALASKA PIPELINE CONSTRUCTION ON THE POSTAL SERVICE IN ALASKA-1974

One of the most important efforts in this Nation's fight for energy independence is the construction of the trans-Alaska pipeline. Upon completion of this project, the United States will be in a position to obtain sufficient supplies of domestic oil to reduce oil imports by approximately one half. This $7 billion project, the largest private enterprise construction project in history, employs workers from throughout the entire Nation. A vital, if not exclusive, communicative link between the workers and their families and friends in the rest of the United States is via the mails. The ability to receive and send mail efficiently and quickly has and will continue to have a tremendous effect on the morale and production of these employees.

The Senate Post Office and Civil Service Committee, recognizing its Postal oversight responsibilities, authorized a staff inquiry into the adequacy of the Postal Service in light of the current pipeline construction boom in Alaska. Specifically, the goal was to ascertain the adequacy of the U.S. Postal Service in meeting the needs of the mail users in light of the trans-Alaska pipeline construction. The methods used in this inquiry were:

(1) Interviews with appropriate Postal officials and employees in Anchorage, Valdez, and Fairbanks, and Washington, D.C., as to the current and foreseeable problems as well as solutions.

(2) Interviews with appropriate officials and employees with the pipeline construction and oil producing companies as to the operations of the mail delivery system and its effect on their personnel.

(3) Interviews with Postal union officials as to the operation of the Postal Service, specifically noting the impact of the pipeline construction on their everyday work.

(4) Interviews with construction and production workers as to specific mail problems.

(5) On site inspection of various Alaskan mail facilities.

MAIL VOLUME INCREASE AND ITS EFFECT ON FACILITIES

The growth in mail volume and personnel turnover exemplify the dramatic impact and additional burdens which the trans-Alaska pipeline construction has placed on the U.S. Postal Service. Anchorage and Fairbanks, being the prime distribution centers for the pipeline construction, have witnessed the greatest increase in postal volume. Anchorage, for example, has experienced a 21 percent increase in mail volume over the past year. Fairbanks shows a close to 10 percent increase. However, in Fairbanks, the growth of revenue is about 20 percent, indicating a considerable growth in local mailing.

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These volume figures are, however, misleading in that they do not tell the entire story. For example, a parcel is considered a piece of mail, as is a letter. However, the amount of personnel and space needed to facilitate the processing of a package is considerably more than a single letter. Unfortunately, the volume counts do not indicate the increase in parcels as opposed to letter mail. Based on discussions with both postal employee union officials and Postal Service management, the increase in parcels has been rather dramatic, causing an inordinate demand on the facilities of the Postal Service. This was particularly true in the towns of Valdez and Fairbanks. For example, in Fairbanks, in the last year, the Postal Service, anticipating the increased mail volume, added some 12,000 square feet of working space for mail processing at the International Airport. The additional space which was thought to be large enough to handle the increased volume of mail for the full three year construction period is now inadequate. According to postal officials, the Post Office is now back where they were during pre-boom days. In Valdez, the additional mail, particularly parcel post, has rendered a 6-year-old facility inadequate. The importance of the increased mail volume not only shows itself in now inadequate postal facilities but also the added work load on employees. Compounding the employee work load problem is the fact that, particularly in Anchorage, postal employees are working in overcrowded and inadequate facilities. In Anchorage, for example, the last major postal facility was completed in 1962 at a time when Anchorage was approximately half its present size. Added to the problem of increased mail relating to the pipeline construction is the periodic increase in parcels due to settlement of the Native Land Claims. Alaska Natives, in the 1971 Alaska Native Land Claims Settlement Act, are entitled to periodic payments. The Postal Service noted that after the first payment this year, there was a 30 percent increase in parcels. It is obvious that the Native peoples are using these Land Claim funds to order needed items from such mail order firms as Spiegel, Sears and Roebuck, Mongtomery Wards, J. C. Penneys, etc. This dramatic increase of 30 percent can be expected again on the next Native Land Claims payments. It is thought that this increase in parcels will continue, however, on a dwindling scale. It should be remembered that the largest parcel post delivery system, United Parcel Service, does not service Alaska.

FACILITIES

Due to the nature of the outdated and inadequate mail facilities. in a great many areas of Alaska, the Postal Service has taken a number of measures to improve this situation. These improvements have had an effect on both employee morale and efficient service to the customers. These changes, in many cases, were brought about by the general needs in a growing state, but also in anticipation of the pipeline construction impact.

In Anchorage, the Federal Station Post Office downtown, through GSA and the Postal Service, has accomplished minimum improvements on the rear portion of the facility housing the carriers. However, no more can be done on the existing building. The counter area was remodeled and a self-service postal center was installed.

In the Main Office, at the Airport, all carriers have been relocated to another plant to allow for additional needed working space for mail distribution activities in this facility. Impending at the Airport office is the enclosure of a canopied area to the rear of the existing building thus making available some 7,000 additional square feet of working space.

Due to lack of space, the Postal Service has installed modular units to house a Postal Employee Development Center. This employee training and development center is part of the Postal Service's program to increase efficiency in combating personnel turnover.

A new leased facility was obtained in the Spenard area of Anchorage in October 1972. Several hundred additional lock boxes were installed in this unit. The former Spenard Branch Post Office is now being utilized for procurement of supplying and contracting functions of the district. A leased facility containing some 14,000 square feet is currently housing all Anchorage carriers except those operating in the downtown and military branches.

Overall plans for Anchorage call for construction of three major new facilities which will not only bring the Postal Service in line to meet present demands, but would also service satisfactorily for many years to come.

(1) A general mail facility. This facility, currently being constructed will contain 157,000 square feet and will be located near the Anchorage International Airport. Its primary purpose is mail processing. This facility will triple the current existing mail processing facility and will cost over $15 million. Completion date, however, is still two years off. (2) A carrier station and vehicle maintenance in the Spenard area. This particular facility has been in the offing since 1968. Recently the U.S. Postal Service approved this $8.8 million project. The facility will house all carriers except those on military bases, a complete retail outlet, locked boxes, enclosed parking for postal delivery vehicles, and a vehicle maintenance facility. Total size will be approximately 134,000 square feet. Currently these facilities are housed in several different locations, all of which are inadequate.

(3) A new downtown facility. Shortly, the construction of a new $71 million Federal Office Building will begin in Anchorage. However, the Postal Service opted not to house a mail facility in this building. Consequently, the Postal Service will need a downtown Post Office. Current Postal plans call for a facility containing 15,000 square feet, housing a retail, locked box, delivery operation only. A complete justification package including economic analysis has been submitted to the Postal Service in Washington. The estimated cost is approximately $2.2 million. As of November 15th, the Postal Service has not given approval to this specific project.

The community of Valdez is the southern terminal port for the trans-Alaska pipeline and as such, much of the construction there is of a more permanent nature than other sections of the pipeline. There are four construction camps serviced by the Valdez Post Office. The current Post Office, although only 6 years old, is totally unable to meet the needs of this seaport. The Post Office was constructed when Valdez's population was less than 1,000. Current population is in the neighborhood of 2,000 with a conservative projection of 5,000 in a couple of years. Although approval for a new Post Office containing

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