Editor’s note: The following is a letter to the editor. The opinions expressed in this letter are those of the writer, and do not necessarily reflect those of The Mendocino Voice. If you would like to submit a letter to the editor feel free to write to info@mendovoice.com.
Dear Editor,
A group of Hopland residents analyzed the Hopland Public Utility District rate study and believes that it is flawed.
HPUD states that there has been a 40% increase in the California Construction Cost Index since the last rate increase. Professional organizations state that rates should be based on sound estimates for repair/maintenance, and investments — not past inflation.
The $5 million estimate for relocating the sewer/water infrastructure to comply with ADA regulations is preliminary and not acceptable for determining permanent rate increases. The current cost estimate is $2 million (from AB830 proceedings and Caltrans). Construction inflation would have to be 22% yearly for the next four years to drive the cost to $5 million. Unrealistic.
A merger between two organizations usually brings cost benefits; however, HPUD plans to increase staff by 10% and wages by 5% a year. Hopland can’t afford that administrative cost.
HPUD and the City of Ukiah plan to increase the budget for Repair/Rehabilitation from $30,000 a year to $80,000 a year in 2025/2026 and then $200,000 a year in 2031. Our research indicates that $200,000 is two times more than the surrounding counties’ spending in relation to their assets.
Vernon Budinger
Hopland