Ralph is wrong

Ralph blasted me in this weekend’s Budgeteer by saying that JCI will not earn 18% on the Red Plan. Take a look at this graph which JCI gave the District in December of 2006 to explain how it would charge for project management. It shows a theoretical one million dollar project. The sample shows it earning $188,000 of the total costs. That’s 18.8 percent!

The letter is to the District’s Director of Facilities, Kerry Leider and begins:

Dear Mr. Leider:

In response to your request, I am writing to provide you with an example of how Johnson Controls’ professional service fees would be applied to a project. Two examples are shown. the only difference is the project delivery method: general contracting versus construction management. The example is a renovation project, where the mechanical contracting work comprises at least 60% of the total project construction costs.

http://www.letduluthvote.com/PDFs/18percent.jpg

The letter is one of the affidavits in our taxpayer case against JCI and the School District. You can see the whole letter here.

About the author

Harry is a ferociously good natured eccentric in Duluth Minnesota who detests traitors dressed up as Uncle Sam. You can find somewhat better edited writings of his at the Duluth Reader "contributors." page. The URL is:

https://duluthreader.com/contributors/h/84/284-harry-welty