Pella Chronicle

Local News

October 26, 2012

Council approves action for Diesel Engine RICE NESHAP Compliance Project

Pella — The Pella City Council approved a resolution during last week's meeting for the Diesel Engine RICE NESHAP Compliance Project. The resolution adopts plans, specifications, form of contract, estimate of cost, and bids and awards the contract to CSE Enterprises, LLC for the Diesel Engine RICE NESHAP Compliance Project (Mechanical). The resolution also rejects plans, specifications, form of contract, estimate of costs, and bids for the Diesel Engine RICE NESHAP Compliance Project (Electrical).

The Environmental Protection Agency (EPA) has adopted several new regulations that will impact generation facilities that have the ability to influence air quality. One new regulation is in regards to Reciprocating Internal Combustion Engines (RICE) and will require the City to reduce CO emissions from our diesel generation plant by at least 70%. To comply, Pella will need to install a diesel oxidation catalytic converter to remove carbon monoxide from the engine emissions. The catalyst will replace the existing silencer with a combination silencer catalyst. This project also includes installing a closed crankcase ventilation system to prevent crankcase emissions from being emitted into the atmosphere (another National Emission Standards for Hazardous Air Pollutants RICE requirement).

This project was originally bid with the mechanical and electrical work combined. The Engineer's, PRVN Consultants, estimate for the project was $600,000. On September 4, 2012, the bids were rejected based on the fact that the low bid of $764,157.75 was significantly over the Engineer's estimate, and 10 exceptions and clarifications to the bids were noted. In addition, authorization was given to rebid the project with the Mechanical and Electrical work as two separate bid packages.

On September 27, 2012, the bid opening was held. The Engineer's estimate was $400,000 for the mechanical portion and $200,000 for the electrical portion of the project. Listed below is a summary of the bids received after the project was rebid.

One bid for the Electrical work was received, which was Altorfer Power Systems of Cedar Rapids, Iowa. Altorfer took exception and noted to their bid that the Electrical work was contingent upon getting the Mechanical bid for the project.

Three bids for the Mechanical work were received; the low bidder for the mechanical work was CSE Enterprises (CSE) of Rolla, Missouri. CSE took exception to the bid documents by substituting a crankcase vacuum control valve instead of a bypass valve and noted they were not a registered contractor in the State of Iowa at the time of bid submittal; however, their registration was pending at the time of the the bid.

PRVN Consultants contacted CSE for clarification on their contractor registration and the exception noted. CES has now been granted a State of Iowa contractor's registration (C 118064) and will supply and install an open crankcase filter system as specified in the bid documents at no change in bid price. The Engineer is recommending Council awarding the contract for the mechanical portion of the project to CSE Enterprises. Additionally, the Engineer's recommendation is to not award or rebid the electrical portion of the project at this time, and utilize written procedures to manually monitor and collect the data that is needed. If this resolution is approved, the substantial completion date is March 27, 2013.

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