HomeMy WebLinkAboutE-08 - Award of Contract, Ice EnergyCONSENT ITEM
E-8
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
FROM: JOE JACOBS, DIRECTOR OF RECREATION AND FAMILY SERVICES
DATE: MARCH 21, 2016
SUBJECT: APPROVAL OF CONTRACT TO ICE ENERGY FOR INSTALLATION OF
THERMAL ENERGY STORAGE SYSTEM AT THE AZUSA SENIOR CENTER
SUMMARY:
The Azusa Senior Center currently caters to (260) participants daily and serves over 36,000 meals
annually. It also serves as a local cooling center on hot summer days when the temperatures reach (100)
degrees or more. The existing air conditioning system can no longer keep up with the cooling demands
of the building and often requires repairs. This action waives the competitive bidding requirements per
Azusa Municipal Code Section 2-520(b) and approves a contract with Ice Energy for the installation of
an Ice Bear Thermal Energy Storage System and associated HVAC equipment at the Azusa Senior
Center.
RECOMMENDATION:
Staff recommends that the City Council take the following actions:
1)Determine Ice Energy to be a sole source vendor based on proprietary thermal storage
technology as authorized under Azusa Municipal Code Section 2-520(b); and
2)Approve a contract with Ice Energy to install an Ice Bear thermal energy storage system and
associated HVAC Equipment at the Azusa Senior Center; and
3) Approve Fiscal Year 2015/16 Capital Improvement Program funding in an amount not-to-exceed
$250,000.00.
DISCUSSION:
The Azusa Senior Center currently caters to (260) participants daily and serves over 36,000 meals
annually. In addition, it also serves as a local cooling center on hot summer days when the temperatures
reach (100) degrees or more. The existing air conditioning system can no longer keep up with the
cooling demands of the building and has reached the end of its service, often requiring repairs. The
APPROVED
COUNCIL MEETING
3/21/2016
Approval of Contract with Ice Energy
March 21, 2016
Page 2
replacement of the Azusa Senior Center HVAC (heating, ventilating, and air conditioning) system was
budgeted in the Fiscal Year 2015/16 Capital Improvement Program (CIP) budget at $250,000.
The Ice Bear thermal storage unit produced by Ice Energy is a proprietary distributed thermal energy
storage technology system that delivers fully integrated, smart grid-ready intelligent distributed energy
storage solutions for peak demand management. The smart grid platform combines Ice Bear distributed
mature energy storage technology with an advanced software infrastructure and intelligent two-way
control to provide utilities with a fully controllable, centrally operated, distributed energy resource. The
system was developed specifically for small to mid-sized commercial buildings and the Ice Bear works
in concert with existing package air-conditioning units.
Under Section 2-520(b) in the Azusa Municipal Code, when the City determines that only one vendor
“with singular characteristics or performances capabilities” can provide “unique commodities or
services” to the City, the purchase of those commodities is deemed a “sole source” purchase and is
exempt from the City’s competitive bidding requirements.
Ice Energy is a sole proprietor of the Ice Bear Thermal Energy Storage product designed for direct
expansion air conditioning systems less than 20 tons in size. Ice Energy holds patents for the thermal
energy storage systems prohibiting direct competition in the air conditioning market space. There, Ice
Energy can be classified as a sole proprietorship and is the only provider in the USA that can convert
commercial and industrial air conditioning load into clean and flexible resource utilities. Staff believes
that the Azusa Municipal Code cited above is applicable and that a determination that Ice Energy is a
“sole source” provider of these commodities being sought is justifiable.
FISCAL IMPACT:
The project is budgeted for $250,000. The quote for the installation of the new HVAC system is for
$165,124.58.
Funds are available in Azusa Light & Water Public Benefit Fund Account 24.
Prepared by: Reviewed and approved:
Lenore Gonzales Joe Jacobs
Recreation Supervisor, Senior Services Director of Recreation and Family Services
Reviewed and Approved: Reviewed and Approved:
Louie F. Lacasella Troy L. Butzlaff, ICMA-CM
Management Analyst City Manager
Attachments:
1) Quotation from Ice Energy
2) Purchase Contract with Ice Energy
3) Solo Source Letter from Ice Energy
ATTACHMENT 1
ATTACHMENT 2
3 East De La Guerra Street, Suite 1, Santa Barbara CA 93101 main: 877.542.3232 web:www.ice-energy.com
March 2, 2016
City of Azusa
729 N. Azusa Ave.
Azusa, Ca 91702
RE:Azusa Senior Center Ice Bear Thermal Energy Storage Project
City of Azusa,
This letter is to document Ice Energy’s current market position and product availability.
Ice Energy is a sole proprietor of the Ice Bear Thermal Energy Storage product designed for
direct expansion air conditioning system less than 20 tons in size. Companies choosing to
utilize our product and services for utility and or building energy projects must purchase directly
from Ice Energy.
Ice Energy holds patents for our thermal energy storage systems prohibiting direct competition in
our air conditioning market space. For this reason, Ice Energy can be classified as a sole
proprietorship and is fortunate to be the only provider in the USA that can convert residential,
commercial and industrial air conditioning load into a clean and flexible resource utilities can
rely to manage peak load without customer cooling sacrifice.
In March 2015,Riverside City Council approved Riverside Public Utility to procure 5 MW of
Ice Bear technology in a sole source good and services agreement.
We hope this information clarifies availability to the Ice Bear product and services.
Kind regard,
Greg Miller
Executive Vice President, Market development
ATTACHMENT 3