[Federal Register Volume 63, Number 248 (Monday, December 28, 1998)]
[Rules and Regulations]
[Pages 71374-71375]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34221]


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POSTAL SERVICE

39 CFR Part 111


Expansion of Location-Based Post Office Box Fees

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: The Domestic Mail Manual is amended to expand the application 
of location-based fees for post office box service to include specified 
facilities. The facility-specific fees place greater emphasis on the 
space cost and utilization of post office box service at individual 
locations.

EFFECTIVE DATE: January 10, 1999.

FOR FURTHER INFORMATION CONTACT: John Dorsey (202) 268-3295.

SUPPLEMENTARY INFORMATION: Fees for post office box service are 
scheduled to change on January 10, 1999 as a consequence of the omnibus 
rate case, Postal Rate Commission (PRC) Docket No. R97-1. This final 
rule announces changes in fee groups for specific facilities which will 
also take effect on that date.
    Postal Service testimony in that case (USPS-RT-19, which rebutted 
testimony filed by the PRC's Office of the Consumer Advocate) set forth 
a means of redefining post office box fee groups to reflect space costs 
and capacity utilization. Comprehensive information necessary to 
effectuate the redefinition nationwide was not then available; in 
keeping with the PRC's suggestion, that information is now being 
developed.
    The Postal Service testimony contemplated changing the fee group 
assignment of 80 facilities among fee groups A, B, C, and D. Consistent 
with this testimony, however, the Postal Service has decided to avoid 
changes between fee groups C and D because of the large fee difference 
between these groups, and the fact that, on average, group D fees do 
not cover costs. Using improved data and additional analysis, the 
Postal Service has identified 29 offices for fee group reassignment 
among fee groups A, B, and C. These 29 offices meet cost and 
utilization criteria for transfer among fee groups A, B, and C. In fee 
groups A and B, facilities being transferred to the next lower fee 
group incur rental costs lower than $17/square foot and have box 
utilization of less than 75%. In fee groups C and B, facilities being 
transferred to the next higher fee group incur rental costs exceeding 
$30/square foot and have box utilization above 90%. Baseline costs and 
usage measurement have been validated and will be monitored following 
implementation to assess impact on customer activity. In addition, 58 
``control'' facilities in neighboring areas will be monitored to serve 
as a benchmark against which to measure activity in the affected 
facilities.
    This amendment expands the current location-based fee groupings to 
include 29 specified facilities. Data gathered on the impact of these 
changes will help guide development of a redesigned fee structure. The 
new fee group assignments for these offices do not change existing fee 
assignments for selected ZIP Code areas currently designated for Fee 
Groups A and B.

List of Subjects in 39 CFR Part 111

PART 111--[AMENDED]

    1. The authority citation for 39 CFR Part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 3001-
3011, 3201-3219, 3403-3406, 3621, 5001.

    2. Revise the following sections of the Domestic Mail Manual which 
is incorporated by reference in the Code of Federal Regulations (See 39 
CFR Part 111) as set forth below:

Domestic Mail Manual (DMM)

D  Deposit, Collection and Delivery

* * * * *
D900  Other Delivery Services
* * * * *
D910  Post Office Box Service
* * * * *

5.0  Fee Group Assignments

* * * * *

5.3  Location-Based Fees

[Revise to 5.3 to read as follows:]
    The facilities defined by the ZIP Codes in Exhibit 5.3A, and by 
name in Exhibit 5.3B, constitute exceptions to the fee groupings 
described in 5.1 and 5.2. Group A, B, or C fees apply as identified.

[Renumber current Exhibit 5.3 as Exhibit 5.3a. Add new Exhibit 5.3b 
as follows:]

                               Exhibit 5.3b.--Location-Based Box Fees by Location
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             Group                      Facility name                               Address
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A.............................  Wellesley Hills..............  337 Washington Street, Wellesley, MA 02181.
                                Neptune......................  532 Neptune Avenue, Brooklyn, NY 11224.
                                Will Rogers..................  1217 Wilshire Boulevard, Santa Monica, CA 90403.
                                North Beach..................  1640 Stockton Street, San Francisco, CA 94133.
B.............................  Prudential Center............  800 Boylston Street, Boston, MA 02199.
                                Charles Street...............  136 Charles Street, Boston, MA 02114.
                                Cos Cob......................  152 E. Putnam Avenue, Cos Cob, CT 06807.
                                Glenville....................  25 Glen Ridge Road, Greenwich, CT 06831.
                                Englewood Cliffs.............  650 E. Palisade Avenue, Englewood Cliffs, NJ
                                                                07632.

[[Page 71375]]

 
                                Port Authority...............  76 9th Avenue, New York, NY 10011.
                                Morningside..................  232 W. 116th Street, New York, NY 10026.
                                Island.......................  694 Main Street, New York, NY 10044.
                                Heathcote....................  1112 Wilmot Road, Heathcote, NY 10583.
                                Old Village..................  661 Middle Neck Road, Great Neck, NY 11023.
                                Fourth Avenue................  336 4th Avenue, Pittsburgh, PA 15222.
                                Buckhead.....................  3393 Peachtree Road, N.E., Atlanta, GA 30326.
                                Station A....................  335 S. County Road, Palm Beach, FL 33480.
                                Station #3...................  2510 Packard Street, Ann Arbor, MI 48103.
                                Pacific Palisades............  15243 La Cruz, Pacific Palisades, CA 90272.
                                Woodside.....................  2995 Woodside Road, Redwood City, CA 94062.
                                18th Street..................  4304 18th Street, San Francisco, CA 94114.
                                Arden........................  2801 Arden Way, Sacramento, CA 95825.
                                Kapahulu Contract Station....  870 Kapahulu Avenue, Honolulu, HI 96816.
                                Wellesley....................  1 Grove Street, Wellesley, MA 02181.
C.............................  Boston University............  775 Commonwealth Avenue, Boston, MA 02215.
                                Stapleton....................  160 Tompkins Avenue, Staten Island, NY 10304.
                                Red Hook.....................  615 Clinton Street, Brooklyn, NY 11231.
                                Bush Terminal................  900 3rd Avenue, Brooklyn, NY 11232.
                                Ryder........................  1739 E. 45th Street, Brooklyn, NY 11234.
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* * * * *
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 98-34221 Filed 12-24-98; 8:45 am]
BILLING CODE 7710-12-P