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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Transfer of Ownership of Ice Energy Thermal Energy Storage (Ice Bear) Units at Various Locations within the City of Glendale and Issuance of $4,500 Electric Utility Bill Credit per Ice Bear Unit for their Removal.
1. Motion authorizing the City Manager, or his designee, to enter into and execute a Transfer, Assignment and Assumption Agreement, and all related and necessary accompanying documents, for the transfer of City’s ownership of Ice Energy Thermal Storage (Ice Bear) units installed at various private commercial property locations within the City and the issuance of $4,500 electric utility bill credit per Ice Bear unit for their subsequent removal.
COUNCIL ACTION
Item Type: Action Item
Approved for March 3, 2026 calendar
EXECUTIVE SUMMARY
In January 2010, the City Council authorized contracts with the Southern California Public Power Authority (SCPPA) for the deployment of up to 1.5 MW thermal energy storage project with Ice Energy Holdings Inc. (Ice Energy). The project included procurement and installation of control and monitoring equipment, as well as integration of Ice Bear units into the City’s larger Smart Grid Initiative. The City installed a total of 162 units at City facilities and on private commercial properties. The City also maintained a service agreement providing annual preventive maintenance and “as needed” repairs.
The Ice Bear units are fully depreciated, and the cost of ongoing repairs and maintenance will exceed their remaining value. It is in the City’s best interest to remove the units currently installed on private properties. Staff evaluated options for removal and decommissioning and have determined that due to the scope of this undertaking, the work will require a public-works scale project implemented in phases. Therefore, staff recommends the approval of a Transfer, Assignment and Assumption Agreement, under which private property owners will assume ownership and responsibility of the Ice Bear units on their properties. Currently, there are 104 units, listed in Exhibit 1, that remain installed at various locations. The City’s recommendation is to issue a utility bill credit in the amount of $4,500 per unit toward electric charges to cover the removal, or a portion thereof, of the units at the property owner’s own expense and risk. 22 26-89428
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RECOMMENDATION
Authorize the herein requested action to transfer 104 Ice Bear units located on commercial private properties at various locations within Glendale Water and Power’s (GWP) service territory, and issuance of $4,500 utility bill credit per unit towards the electric charges to an account designated by each property owner for the unit’s removal at the property owner’s sole expense and responsibility.
ANALYSIS
Between the years of 2010 and 2014, the City Council authorized the City of Glendale to enter into contracts to participate in a program through SCPPA to deploy a thermal energy storage project within the City with Ice Energy. The project consisted of the upgrade of HVAC systems at City facilities, procurement and installation of control and monitoring equipment, as well as integration of Ice Bear units into the City’s larger Smart Grid Initiative. The City Council authorized a total project cost not to exceed $4,250,000, that came from multiple funding sources including Electric Depreciation Fund, U.S. Department of Energy (DOE), Energy Efficiency Conservation and Block Grant (EECBG), and DOE modernization grant project. As part of the DOE project, GWP ultimately installed 162 Ice Bear units on City and private commercial properties.
Currently, there are a total of 107 Ice Bear units installed, with 104 units on private commercial properties and three units on City facilities.
Since commercial operation date of the units, the City held a service agreement with Ice Energy through SCPPA providing annual preventive maintenance and “as needed” repairs of Ice Bear units throughout GWP’s service territory. In 2019, Ice Energy filed for bankruptcy, and Thule Energy Storage (Thule) acquired the Ice Bear™ thermal energy storage technology and product line. In December 2021, the City Council approved a Task Order, under a Master Services Agreement through SCPPA, with Thule for the continued operation, maintenance and services for the Ice Bear units for a not-to-exceed amount of $150,000. This task order has expired since 2023.
The Ice Bear units are fully depreciated. GWP has evaluated the viability of the Ice Bear system and has determined that it is best to conclude the program and decommission the Ice Bear units due to unit degradation, and projected maintenance exceeding equipment’s useful life.
Staff has determined that removal of Ice Bear units on private properties and their decommissioning and removal will require the City’s ingress onto private property with the undertaking of risk and liability for any damage caused as a result. The removal and decommissioning of these units, aggregated in one project, is considered a public-works scale project due to the scope of this undertaking and would be implemented in phases. Furthermore, staff determined that the amount of $4,500 to credit property owners is based on the last contractual expense under SCPPA’s task order. Therefore, staff recommends transfer of title, ownership and liability for the units to the commercial property owner, with a $4,500 per unit electric utility bill credit 23 26-89428
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to the owner, or an account designated by the property owner for its removal. Each customer receiving ownership transfer of the Ice Bear unit(s) will be responsible for compliance with all federal and state regulatory requirements for proper removal and decommissioning of each unit. The City, upon transfer of title, will not be responsible for any damage or costs in excess of the $4,500 credit described herein.
STAKEHOLDERS/OUTREACH
The private commercial property owners were contacted by GWP staff to determine the scope of interest in the proposed plan. They were notified that if the plan is approved by City Council, they would have the opportunity to take ownership of the Ice Bear units in exchange for the per unit bill credit. Most of the property owners expressed their readiness to take ownership and have the bill credit be applied to an account they designate. A few property owners stated that they do not want to take ownership of the Ice Bear units and want the City to remove the units, regardless of how long it may take.
FISCAL IMPACT
No new appropriation is being requested.
Upon completion of all documentation related to Transfer, Assignment and Assumption Agreement, the City will issue a $4,500 bill credit to the private commercial property owner or utility account holder. Each credit per Ice Bear unit will be debited from the annual revenues collected from the following account:
Electric Commercial Sales revenue recorded in account 36260-5820-GWP-0000.
The maximum impact on the projected revenues in the Electric Works Revenue Fund 5820 will be $468,000; equating to $4,500 utility bill credit per unit for 104 units installed on various private commercial properties.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
The action requested herein does not constitute a project approval for the purposes of the California Environmental Quality Act (CEQA) and concerns the transfer of ownership of already existing HVAC units on private property. For this reason, it can be said with certainty that there is no possibility that approving the transfer of ownership of Ice Bear units on private property will result in any significant change in the environment (CEQA Guidelines §15061(b)(3)).
CAMPAIGN DISCLOSURE
Not applicable.
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ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: Not approving the action requested herein will result in the City retaining title and responsibility of the obsolete Ice Bear units and shift the responsibility and liability of the removal of the Ice Bear units to the City.
Alternative 2: Council may consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Scott K. Mellon, P.E., General Manager - Glendale Water and Power Prepared by:
Alina Morshidian, Power Contracts Manager
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1: List of Ice Bear Units for Proposed Transfer