In a powerful show of community unity, more than 400 La Jollans filed into the Cuvier Club on April 26 to urge U.S. Postal Service representatives not to go through with the proposed sale and relocation of their beloved Wall Street post office. Residents packed the room to capacity, holding nothing back in expressing just how much their post office means to them. Arguments against the proposed relocation ranged from protecting the historicity of the building and Belle Baranceanu mural to emphasizing the significance of the Wall Street post office as a vital economic engine, meeting place and cultural landmark for La Jollans. The defenses were varied, but one thing was certain: No one wanted to see it go. “I can’t think of another time that I’ve seen such excitement and such a sense of unity about anything in La Jolla,” said Tom Grunow, president of the La Jolla Historical Society board. Merchants, residents, civic leaders and community organizations have joined hands in the fight to save La Jolla’s Wall Street post office since word spread of its proposed relocation in January. “It’s truly the glue that holds our community together,” said District 1 City Councilwoman Sherri Lightner. “We need to do everything we can so we don’t lose this historic community treasure.” Relocating the post office would not only cut off the village’s economic lifeblood, but also its link to communities surrounding the village, like Bird Rock, said Joe Parker, president of the Bird Rock Community Council. “Bird Rock does not have its own U.S. post office, and we come to greater La Jolla to do our business there,” he said. “The La Jolla post office is an important community touchstone for Bird Rock. It is our connection to greater La Jolla.” Phil Coller, president of the La Jolla Village Merchants Association, argued that USPS’s proposal simply does not make sense as a rational economic solution to the postal service’s dire financial problems. “If they put a 14,000-square-foot building that they need to downsize to 6,000 square feet — and most of that is the counter space — why would you go about trying to move it with all the costs? Just keep your 6,000 square feet and sell off the other 8,000 square feet,” he said. “Why would you also go out and try to relocate to another space that’s probably going to cost you more than the current space? Multiply that by 30 years, and you actually have a negative cash flow. Moving is pointless. You gain nothing. You only lose.” He also urged USPS representatives to think of village merchants as potential buyers should the building go up for sale. “If you actually talked to us — the merchants association, the villagers — we could actually buy it,” he said. “We, as a community, will come to you and make proposals and work with you to help you save the money you need to save, and we will keep our post office.” Community leader Egon Kafka said he spoke with Jay Wang, a commercial loan officer at U.S. Bank, who offered what Kafka said is a viable solution. “Together, we calculated that a replacement facility in town here would cost about $23,000 per month or $276,000 per year. Jay offered that for $18,700 per month, he would loan the money to the Postal Service and they could buy their building back on a 25-year deal,” he said. “As a citizen and taxpayer, I’d really like to see the U.S. government not divest itself of a property in this foolish way.” Postal representative Diana Alvarado said the USPS has not begun a site search at this time. “We wouldn’t do that until the building is actually placed on the market and we have potential buyers,” she said. “If we were to relocate, we wouldn’t want to leave the building empty.” As for filling the space, community members were not short on ideas. Erika Torri, executive director of the Athenaeum Music and Arts Library, said postal services should stay at the current location neighboring the Athenaeum, but that a cultural element similar to the Athenaeum’s model could fill the excess square footage in the building, making the bustling area a “wonderful cultural corridor.” “Most importantly is to save the building the way it is because it is a beautiful site,” said Torri. “I don’t think there would be any shortage of ideas for what could be done for the rest of the building if we still have the post office at the front.” Alvarado said the USPS does recognize the potential for the Wall Street location to rightsize in-house, a suggestion that was met with a hearty round-of-applause. “Our replacement retail space would be approximately 6,000 square feet. We’re here to seek your input as to where you would want that to be, but I think I already know where that is,” she said. She emphasized that the proposed relocation was just that — a proposal. “Say the relocation was approved. There are two very important contingencies that have to happen,” she said. “We have to have an acceptable buyer and we have to have an acceptable relocation space. If neither of those things happen, this [relocation] does not happen.” She also said the USPS does recognize historical significance and has hired a historical consultant to define covenants and restrictions to maintain historical elements of the building should it go up for sale. USPS representative Ken Boyd urged residents to write to Alvarado during the 30-day public comment period following the April 26 meeting to outline a “vibrant business plan” that spells out how the Postal Service will benefit from the remedies suggested. “It’s not, ‘Sell the building, hell or high water,’” he said. “It’s here listening to the different options, and I think there have been some very good options. Now, I think the ball is in your court.” With so many La Jollans rallying behind one goal, a “win-win” solution can certainly be found, said Trip Bennett, interim executive director of the La Jolla Historical Society. “I hope you go away from here understanding that we’ve got a lot of smart, intelligent people at this forum,” Bennett said. “You need to know that the economics — whatever it is — we can solve it.” Understanding the issue: Why is La Jolla slated for relocation? USPS is required by law to deliver mail to every address in the United States, according to its universal service obligation statute. “Parts and labor puts pressure on our ability to provide universal service [and] volume is declining steadily,” said USPS spokesperson Eva Jackson. “We have an increase in delivery points every year, which forces us to add our delivery routes and vehicles.” Electronic diversion and the downturn economy have contributed to the drop in mail volume — particularly in the more lucrative first-class mail. “First-class mail volume has been declining since 2006, and the forecast suggests that by 2020, we’ll process half of the first-class mail that we processed in 2010,” Jackson said. “Standard mail has declined since 2006, but it is expected to hold steady through 2020. However, it takes three pieces of standard mail to replace the fixed costs of one piece of first-class mail.” Falling revenues added to rising fixed costs — including maintaining more than 30,000 retail locations and supporting the Postal Service’s expanding mail-processing infrastructure — have put USPS in dire financial straits, culminating in a $13 billion deficit, according to financial statements at the end of last quarter. “At the end of quarter one, which ended in December, we were $13 billion in debt,” said Jackson. “On top of that, the USPS is losing $25 million a day.” Second-quarter financial reports — coming out on May 10 — will be available for viewing at http://about.usps.com/who-we-are/financials/wel-come.htm. “Our labor costs are approximately 80 percent of our total costs, and with limited flexibility in labor contracts and retiree pre-funding impacts, those impact our finances,” said Alvarado. “Our pricing for stamps and products are capped by inflation, and our customers really can’t afford the impact of a large price increase.” The poor financial climate of the Postal Service requires the entity to optimize its network by cutting costs, improving efficiency and raising revenue. “Our postmaster general has given us some core strategies, and that is to become leaner, faster and smarter, and we have to drive out costs,” said Alvarado. Realigning its infrastructure and workforce, selling and relocating post offices, and right-sizing its network for processing and delivery are a few of the USPS’s primary solutions to climb out of its deep financial hole, Alvarado said. “In the case of La Jolla — because it is retail only — we are focusing on savings that we could capture by rightsizing our facility,” she said. By relocating La Jolla’s post office from its current 14,400 square feet to a smaller 6,000-square-foot site, USPS estimates it would save just over $30,000 per year. “That might seem insignificant, but when you times that by the Postal Service’s portfolio at 3,700 facilities, that’s a big number,” Alvarado said. What’s next? The USPS will accept public comment until May 26. Comments for the record are only accepted via letters to the following address: Diana Alvarado USPS Pacific Facilities Service Office 1300 Evans Ave., Ste. 200 San Francisco, CA 94188-8200 After the public comment period, the USPS will reach a recommended decision regarding the post office’s proposed relocation. Following the announcement of its decision, the public will have 15 days to appeal the recommendation.