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HomeMy WebLinkAbout2014-03-25 - AGENDA REPORTS - US POSTAL SVC REFORM RESO (2)CONSENT CALENDAR DATE: SUBJECT: 1006T\;41WW" Agenda Item: 3 CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval Item to be presented by: March 25, 2014 Casey Bingham RESOLUTION FOR UNITED STATES POSTAL SERVICE REFORM City Manager's Office RECOMMENDED ACTION City Council accept the recommendation of the City Council Legislative Committee and adopt a United States Postal Service (USPS) reform resolution, and transmit letters to the President of the United States, Senator Barbara Boxer, Senator Dianne Feinstein, Representative Howard P. "Buck" McKeon, United States Postmaster General and the appropriate congressional committees. BACKGROUND At the January 14, 2014, City Council meeting, local residents affiliated with the United States Postal Service, requested that the City Council adopt a resolution supporting Postal Service reform. The main components of the suggested resolution to the Council were to: address USPS' requirement by Congress to pre -fund 100% ($5.5 billion annually) of future retiree health benefits for the next 75 years, secure the continuance of a 6 -day mail delivery week for USPS delivery staff, protect veterans employed by the USPS, protect the USPS so they can deliver prescription drugs to seniors, and protect vote by mail since the USPS delivers these ballots to City residents. Originally the Federal bill that addressed reforming the United States Postal Service was S.316, The Postal Service Protection Act of 2013. S.316 was assigned to the Senate Homeland Security and Governmental Affairs Committee over a year ago on February 13, 2013. This bill has not seen any movement since that time. Upon further research staff has become aware of two additional Federal bills related to USPS reform; H.R. 2748, the Postal Reform Act of 2013 and S. 1486 the Postal Reform Act of 2013. Both of these bills deal with the same issues brought forward at the January Council meeting and appear to be more viable vehicles in Congress to address Postal Service reform. H.R. 2748 H.R. 2748 has been recommended by the House Committee on Oversight and Government Reform to be sent to the House of Representatives for consideration. H.R. 2748 modifies the prefunding formula for the USPS retirement by incorporating the wage and salary growth of postal workers. If passed, H.R. 2748 would require USPS, until December 31, 2018, to provide domestic competitive product service six days per week to each street address that was scheduled to receive package service six days per week as of September 30, 2012. H.R. 2748 will also modify USPS' policy to use the most cost-effective primary mode of mail delivery feasible for postal patrons and requires USPS to implement a program to provide a primary mode of mail delivery other than door delivery to residential and business addresses. S. 1486 5.1486 was sent by the Senate Homeland Security and Governmental Affairs Committee for consideration by the Senate earlier on February 6, 2014. Under S. 1486, the proposed pre -funding formula would be changed to use demographic data and revised economic assumptions. The bill would suspend payments until fiscal year 2016 and reduce the pre -funding requirement to 80 percent of projected liability, from the current 100 percent. Currently, the Postal Service delivers traditional mail six days per week and special deliveries of packages and Express Mail can take place on Sundays. S. 1486 would establish a volume trigger for a transition to mail delivery five days per week instead of seven. It would require the Postal Service to maintain its current delivery schedule until total mail volume during four consecutive quarters drops below 140 billion pieces, the threshold at which a move to five-day delivery would be allowed. This Postal Service reform issue was brought before the Council Legislative Committee on March 3, 2014, to discuss the three proposed Federal bills and the Committee recommended the language contained in the Council postal reform resolution. As it is currently unclear which bill will ultimately move forward through the Federal legislative process, the Legislative Committee identified specific areas of interest that should be included in any postal reform legislation enacted by Congress. These areas are identified in the recommended Council resolution. As of March 2014, 26 other California cities and counties have passed Postal Service reform resolutions including Anaheim, Los Angeles, San Luis Obispo, Santa Ana, Thousand Oaks, and Westminster. L The City Council Legislative Committee recommended the Council support a Postal Service reform resolution, citing specific areas of concern, at the March 25, 2014, City Council meeting. ALTERNATIVE ACTIONS 1. Take no position on USPS reform. 2. Other direction as determined by the City Council. FISCAL IMPACT No additional resources are needed to implement the recommended action. ATTACHMENTS Resolution 3 RESOLUTION 14- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, RECOMMENDATIONS FOR UNITED STATES POSTAL SERVICE REFORM WHEREAS, the US Postal Service is a component of this country's economic and communications infrastructure handling and delivering 160 billion pieces of mail annually; and WHEREAS, the mailing industry depends on the US Postal Services' mail processing, retail, and delivery networks; and WHEREAS, voting by mail, is now commonplace in California, including Santa Clarita, which is essential to our democracy; and WHEREAS, the US Postal Service is one of the largest employers of US Veterans in the country; WHEREAS, rural communities, many of which do not have access to the Internet, remain dependent on the Postal Service for vital communications and for the shipment of goods; and WHEREAS, many Americans, particularly seniors, depend on the Postal Service for receipt of their prescription drugs. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: that the Santa Clarita City Council urges Senator Barbara Boxer, Senator Dianne Feinstein, and Representative Howard P. "Buck" McKeon to support postal reform legislation that would: SECTION 1. Secure the continuance of suitable levels of weekly mail service that meets the needs of our City residents; SECTION 2. Stabilize the Postal Service's finances by reforming the future pre -funding of retiree and health benefits to an appropriate level so that the US Postal Service remains solvent and sustainable; SECTION 3. Encourage opportunities for the Postal Service to become more competitive in the free market with private mail delivery companies; SECTION 4.The Santa Clarita City Council transmit copies of this resolution to the President of the United States, Senator Barbara Boxer, Senator Dianne Feinstein, Representative Howard P. "Buck" McKeon, and the appropriate Congressional Committees and to the United States Postmaster General. SECTION 5. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this ATTEST: INTERIM CITY CLERK DATE: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA) day of 2014. MAYOR I, Armine Chaparyan, Interim City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of 2014, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: 2 INTERIM CITY CLERK