2. Board of Governors
As the governing body of the U.S. Postal Service, the 11-member Board of Governors has responsibilities comparable to a board of directors of a publicly held corporation. The Board is composed of nine Governors appointed by the President of the United States with advice and consent of the Senate. The other two members of the Board are the Postmaster General and the Deputy Postmaster General. The Governors appoint the Postmaster General, who serves at their pleasure without a specific term of office. The Governors, together with the Postmaster General, appoint the Deputy Postmaster General (39 U.S.C. 202).

The Board meets on a regular basis and at the annual meeting in January the chairman is elected by the Governors from among all members of the Board. The vice chairman is elected by the full Board.

The Board directs the exercise of the power of the Postal Service. It establishes policies, basic objectives, and long-range goals for the Postal Service in accordance with Title 39 of the U.S. Code. Except for those powers specifically vested in the Governors, the Board may delegate the authority vested in it by statute to the Postmaster General under such terms, conditions, and limitations, including the power of redelegation, as it deems desirable (39 U.S.C. 402). The Governors are authorized to establish reasonable and equitable classes of mail and reasonable and equitable rates of postage and fees for postal service (39 U.S.C. 3621). A specific power reserved by statute for the Governors alone is to approve, allow under protest, reject or, by unanimous written decision, modify recommended decisions of the Postal Rate Commission on postal rate and mail classification changes (39 U.S.C. 3625).

The Board held regular monthly meetings during 2001 for a total of 24 days. Nine of the regular meetings were held in Washington, DC, and the other three in cities across the country. In addition, the Board held six special meetings.

The Board had three standing committees: Audit and Finance, Capital Projects and Strategic Planning. The committees held regularly scheduled meetings during the year to consider matters within their areas of responsibility and refer items to the full Board for consideration.

In October 2000, the Board approved two capital projects: expansion of the Processing and Distribution Facility in Champaign, IL, and additional funding for a new Springdale Station in Stamford, CT. They also approved a resolution to borrow money as well as their meeting schedule for 2001. In November 2000, the Board approved a resolution for Approval of International Postage Rates, Special Service Fees, and Miscellaneous Charges. The Board approved capital funding for the Information Technology Enhanced Security Capability and approved the FY 2001 Integrated Financial Plan.

In December 2000, the Governors, in separate votes, approved the Recommended Decisions of the Postal Rate Commission on Postage Rate and Fee Changes and on Selected Mail Classification Matters, Docket No. R2000-1, under protest. The Board approved a resolution setting January 7, 2001, as the effective date for the new classification and fees. The Board approved the FY 2000 Audited Financial Statements and the EVA Variable Pay Program for FY 2001. The Board approved three capital projects: restoration of the parking area at the Milwaukee, WI, Processing and Distribution Center; the mail processing annex in Indianapolis, IN; and additional funding for automated flats feeder and OCR capability for Flat Sorting Machine 1000s.

In January 2001, the Board approved a resolution supporting the transportation and drop box agreements with Federal Express. The Board approved a resolution on capital funding and the FY 2000 Annual Report. The Board approved four capital projects: Integrated Data Systems Upgrade, Time and Attendance Collection System, Standard Accounting for Retail Systems, and Postal Field Computing Infrastructure. The Governors elected Robert F. Rider as Chairman of the Board and the Board elected S. David Fineman as Vice Chairman for 2001.

In February, the Board approved a resolution to borrow money and capital funding for a new Mar Vista Station in Los Angeles, CA.

In March, the Governors approved the Decision rejecting the Further Opinion and Recommended Decision of the Postal Rate Commission on Postage Rate and Fee Changes, Docket No. 2000-1, and requested reconsideration. The Board approved filing of a Priority Mail Niche Classification and capital funding for upgrades at the Processing and Distribution Center in Seattle, WA.

In April, the Board approved a resolution clarifying the role of the Strategic Planning Committee. The Board also approved the FY 2000 Comprehensive Statement on Postal Operations and a resolution to borrow money.

In May, the Governors unanimously approved the decision to modify the postal rates and fees recommended by the Postal Rate Commission. The Board approved a resolution setting July 1, 2001, as the effective date for the new classification and fees. The Board approved a resolution revising the Audit and Finance Committee charter, the FY 2002 appropriation request, and a resolution to borrow money. The Board approved capital funding for enhancements to the letter recognition program.

In June, the Governors approved the Postal Rate Commission’s Recommended Decision on Experimental Presorted Priority Mail Rate Categories, Docket No. MC2001-1. The Board approved July 15, 2001, as the effective date of the new classification and rates. The Board approved capital funding for the Surface Air Support System and for advance site acquisition for the Processing and Distribution Center in Teterboro, NJ.

In July, the Board approved Pay for Performance goals for FY 2002 and Board meeting dates for calendar year 2002. The Board approved a motion to seek acceleration for the reimbursement for forgone. The Board approved capital funding for the West Bethesda Branch in Bethesda, MD, and for administrative space at the North Lynn Street facility in Arlington, VA.

In August, the Board held a one-day closed session to review financial and pricing information for filing an omnibus rate case with the Postal Rate Commission.

In September, the Board approved filing a rate case with the Postal Rate Commission, extension of the experimental ride-along case, and filing an experimental case for delivery confirmation. The Board approved the FY 2002 operating budget for the Office of Inspector General. The Governors approved the Postal Rate Commission FY 2002 operating budget. The Board approved the FY 2002 operating budget and capital investment plan for the Postal Service, and a resolution to borrow money. The Board approved funding for lease renewals for the Priority Mail Processing Center Network.

Postmaster General William J. Henderson retired from the Postal Service on May 31, 2001. The Governors appointed John E. Potter as Postmaster General effective June 1, 2001.