The post office in downtown Derby may close, with some services then moved across the Housatonic River to the downtown Shelton post office on Bridge Street. The Derby post office at 74 Olivia St. is \u201cexcess\u201d to the U.S. Postal Service\u2019s needs and could be closed as part of a national effort to save money, according to a notice the city of Derby received March 1. Valley Council of Governments Executive Director Rick Dunne confirmed that the Postal Service had notified his office and Derby City Hall that the Olivia Street location could be shut down. \u201cWe received a notice that the Postal Service is contemplating disposal of the building,\u201d Dunne said. There is no timetable for the final decision, he said. Functions moving to Shelton The Derby main post office, as it is officially known, is a 12,000-square-foot building with a basement and main floor area. According to the notice, the Derby mail sorting and delivery would be based out the Shelton office and the U.S. Postal Service (USPS) would open an 1,100-square-foot retail branch in downtown Derby to handle customer service and retail transactions. The Shelton postal facility at 83 Bridge Street is less than a half-mile from the Derby main post office. Excess space in Shelton The plan would allow the USPS to make use of excess space in the Shelton location and increase the efficiency of its operations while still providing customer service in both communities, according to Derby Mayor Tony Staffieri. Staffieri said he met with a USPS real estate specialist last week to discuss the potential of closing the main post office and its potential effect on the city. \u201cIn a letter to me dated Feb. 1, the USPS stated the proposed new post office will offer the community an upgraded, modern facility with the same level of quality service,\u201d Staffieri said. \u201cThe important piece of this is that the city of Derby, at the very least, will have a new retail postal facility which will remain in Derby.\u201d Derby postal facility In addition, Staffieri said, the Derby main post office, an underutilized space, could be renovated into retail or commercial use and add to the downtown tax base. \u201cI will work in partnership with the USPS to ensure that we have everything we need for postal services right here in Derby,\u201d Staffieri said.