Math, people

***How is that there are those who portend to be able to run a multi-million dollar power plant can't do simple math?  Or is it how the paper of record portrayed the cost to REPLACE the leaving project manager?

The SJ-R breathlessly reports today that it will cost about $400K to hire a consultant to finish the new power plant project.  Of course, the idea of hiring from within was dismissed.  Oh, and, what about the general contractor that is already on site?  Surely they can't be expected to assist in this process.

But the real issue here is take your eye off the $400K and go back to math class.  CWLP is REPLACING the engineer, that means there is a savings of his proposed increased salary.  So if we only look at the two remaining years that it will take to finish the plant, with this year's raise and next year's raise, the engineer's salary would've been $335,775 approximately.  That number doesn't include benefits or pension payment.  So, in essence, CWLP isn't out any money.

We won't even bring into the equation the fact that the engineer's contract for 5 years even though the project will conclude in about 2.

Then you take the remainingg $130,000 in raises that are off the table now, add in the raises for next year to those 4 guys and you have a savings of $264,550 just over the next two years.  Of course, this also doesn't account for benefits or pension obligation to the city which should be considered savings as well.

So, it seems to us that the city is in fact saving nearly $300,000 just over the next 2 years!

Makes you wonder how much money, time and effort the city would've saved if they had just gone with a contracted project manager from the very start.

 

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