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HomeMy WebLinkAboutE-7.1. Approve Task Order for Ice Bear Repairs and Services from Thule Energy StorageCONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES DATE: JULY 26, 2021 SUBJECT: APPROVE TASK ORDER FOR ICE BEAR REPAIRS AND SERVICES FROM THULE ENERGY STORAGE, LLC BACKGROUND: The City of Azusa has several Ice Bear Thermal Energy Storage (TES) systems situated on municipal facilities throughout the City. From time to time the Ice Bears may need repair and maintenance outside of the normal scope of capabilities of the internal Public Works Department personnel and the third party air conditioning maintenance contractor. In the past Ice Energy provided periodic maintenance and repair services, until filing for bankruptcy in December of 2019. Eventually, Thule Energy Storage, LLC took over the remaining book of business and is now providing repairs and services through a new Southern California Public Power Authority (SCPPA) master services agreement allowing for a lower per service cost has been negotiated for this program based on the SCPPA joint purchasing agreement (JPA) -- making materials for the program more cost effective than if it was contracted directly with the vendor. The ability to take advantage of the quantity discount purchase through the SCPPA JPA is made possible by AMC Section 2-520(b) “Sole Source Purchase” and “Cooperative and Piggyback Purchasing” since SCPPA has conducted an acceptable competitive bidding process on behalf of its SCPPA members. RECOMMENDATION: Staff recommends the Utility Board approve the following actions: 1) Approve the SCPPA Task Order for the Ice Bear Repairs and Services from Ice Bear SPV #1 LLC, d/b/a Thule Energy Storage, LLC at an annual cost not to exceed $24,000 through a SCPPA joint purchase agreement pursuant to AMC Sections 2- 520(b) “sole source” and 2-521(a) “cooperative and piggyback purchases”; and 2) Authorize the Director of Utilities to execute the associated SCPPA Task Order in a form acceptable to the City Attorney. E-7Approved Utility Board 7/26/21 Ice Bear Repairs and Services July 26, 2021 Page 2 ANALYSIS: For over a decade, more than a dozen Ice Bear TES systems have been in operation on municipal buildings including the North Recreation Center, Police Department, Library and the City’s two Data Centers. Due in part to the simplicity of the units, they have operated with very little down time, however some of the internal workings are proprietary and require Ice Bear technicians to provide repairs and/or services. In the event of equipment failures, this agreement allows for Azusa to have on-call expert services available for emergency repairs and services. FISCAL IMPACT: The annual $24,000 cost for the program has been budgeted under Public Benefit Fund account number 24-40-739-082-6625. Prepared by: Reviewed and Approved: Paul Reid Manny Robledo Environmental Programs Manager Director of Utilities Reviewed and Approved: Sergio Gonzalez City Manager Attachments: 1) SCPPA-ALW Task Order