Pella Chronicle

Local News

December 11, 2013

Power Plant deconstruction project moving forward

(Continued)

The base bid for the project requires a substantial completion date of July 7, 2014 while the alternate bid allows for a substantial completion date of September 3, 2014. Likewise, the alternate bid with boilers is the additional project cost in the event asbestos abatement is necessary for the boilers. The engineer’s estimate for the project was $3.9 million.

Engineer’s Recommendation

After reviewing the bid proposals, the project Engineer, Bums and McDonnell, recommended awarding the contract to NCM Demolition for the base bid amount of $1,388,000. In addition, the engineer is also recommending the lump sum asbestos abatement, if needed, for the power plant boilers for an additional cost of $327,200. If asbestos abatement is needed for the boilers, the total contract price would be of $1,715,200 ($1,388,000 plus $327,000 = $1,715,000).

City Staff is proposing issuing a $3.5 million Electric Revenue Bond with a ten year term to assist in funding in the projects (Power Plant Deconstruction, Southeast Electrical Underground Conversion Project, Diesel Plant Control System Upgrade). The tentative timeline for completion of the project would be July 7, 2014.

‘Award of Contract’ simply denotes the City’s intention to award a contract with NCM Demolition for this project contingent upon the contractor securing the necessary bonds and insurance certificates as required in the proposed contract. The next step will be for council to consider approval of the contract and bonds with NCM Demolition at a later date.

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