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The Postal Service is considering closing more than 1 in 10 of its retail outlets, including 15 in Utah.

The financially troubled agency announced Tuesday that it will study 3,653 local offices, branches and stations for possible closing. But many of those may be replaced by Village Post Offices in which postal services are offered in local stores, libraries or government offices.

"It's no secret that the Postal Service is looking to change the way we do a lot of things," Postmaster General Patrick Donahoe said at a briefing. "We do feel that we are still relevant to the American public and the economy, but we have to make some tough choices."

The only outlet in Salt Lake City on the possible hit list is at the airport. Most of the Utah offices considered for closing are located in rural areas.

In Emery (population 308), Mayor Mistie Christiansen said her municipality is so isolated that "any loss of services will hit the town hard. It seems like one more dig, but we pay taxes like anyone in Salt Lake City. We're taxpayers, too, so it doesn't seem fair."

Christiansen said that perhaps it might be possible for the town's one-pump gas station to have a post office, "but not without doing some modifications."

Hanksville Mayor Stan Alvey questioned economic savings by closing down the Postal Service outlet and combining with one of the few small businesses in his town of 460 residents.

"You've got to pay somebody," he said. "We want to keep what we have."

Park City officials would be disappointed if the Post Office in Old Town closed because it serves as a gathering place for the area, said Jonathan Weidenhamer, the city's economic development director.

"The post office is an anchor that brings Old Town residents and visitors to Main Street," he said. "A large number of our residents don't have home delivery; they rely on post office boxes to get their mail, and visitors want their postcards mailed with a Park City stamp. We are very interested in having a post office in Old Town — it is one of the things that separates us from other destination ski resorts."

Along the Wasatch Front, some Postal Service outlets already are located within existing businesses.

Recently, the Postal Service opened full-service, privately contracted outlets inside the Harmon's grocery store at Brickyard Plaza, 3270 S. 1300 East in Salt Lake City and at stores in Taylorsville and Midvale. Hours of operation are from 9 a.m. to 8 p.m., seven days a week.

"We're teaming up with stores like Harmon's so customers can do postal business at places where they already shop," acting Salt Lake City Postmaster Charley Wright said in a statement. "Contract postal locations offer virtually all of the services you would find at a post office, and the prices are the same."

All 14 Harmon's grocery stores offer basic postal services at customer-service booths, and the chain is looking into providing full-service contract post offices at more store locations when possible, said Bob Harmon, the Utah-based chain's co-owner.

Nationally, the post office operates 31,871 retail outlets across the country, down from 38,000 a decade ago, but in recent years business has declined sharply as first-class mail moved to the Internet. In addition, the recession resulted in a decline in advertising mail, and the agency lost $8 billion last year.

Most of the offices that face review are in rural areas and have low volumes of business. As many as 3,000 post offices have only two hours of business a day even though they are open longer, said postal Vice President Dean Granholm.

Coming under review doesn't necessarily mean an office will close. The post office announced in January it was reviewing 1,400 offices for closing. So far 280 have been closed and 200 have finished the review process and will remain open.

Once an office is selected for a review, people served by that office will have 60 days to file their comments. If an office is to be closed, they will be able to appeal to the independent Postal Regulatory Commission.

"This is bitter medicine, but changed times call for a changed Postal Service. With mail volumes declining at a dizzying rate, we need a Postal Service that is leaner, more efficient and less expensive," said Art Sackler, chairman of the Coalition for a 21st Century Postal Service, a mailing industry group. "The closure of a post office can be difficult, but these avenues must be explored to ensure that the Postal Service and the 8 million private sector jobs that rely on it are able to survive, and that the economy as a whole doesn't take yet another disruptive blow."

The vast majority of sales in post offices are stamp purchases, officials said, and that can easily be handled at the new Village Post Offices. In addition, those offices would accept flat-rate packages and some could provide post office box service. For passports or other more complex services customers would have to go to a remaining regular post office.

Already some 70,000 locations, such as supermarkets and department stores, sell stamps.

Over the past four years, the Postal Service, which does not receive tax funds for its operations, has cut its staff by about 130,000 and reduced costs by $12 billion in an effort to cope with the loss of first-class mail to the Internet and the decline in advertising mail caused by the recession. For example, about half of all bill payments are made via Internet now, up from 5 percent a decade ago.

Postal officials have also sought permission from Congress to reduce mail delivery to five days a week and to ease the requirement that they pay $5.5 billion annually into a fund to pre-pay future retiree medical benefits.

Without the $5.5 billion annual pre-payment — which is not required of any other government agency — the Postal Service would have made a profit over the past four years. However, because of the complex way federal finances are structured, the payment is counted as income to the government and eliminating it would make the federal deficit appear to be $5.5 billion larger.

The agency has also suspended payments into its pension fund and eliminated bonuses and performance awards for managers and executives.

Of the 1,400 offices announced for review in January, 620 are still in the review process and 300 will move to the new review list.

Tribune reporter Dawn House contributed to this story. —

Post offices being studied

Can be found at http://bit.ly/qm33Ao

Utah post offices under review

Airport Station-Salt Lake City 84122

Old Town-Park City 84060

Park Valley 84329

Rush Valley 84069

Trenton 84338

Vernon 84080

Clawson 84516

Dutch John 84023

Emery 84522

Hanksville 84734

Henrieville 84736

Lyman 84749

Whiterocks 84085

Elberta 84626

Garrison 84728

Source: U.S. Postal Service