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Agenda Item
ASR
Control 25-000773 |
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MEETING
DATE: |
02/24/26 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
5 |
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SUBMITTING Agency/Department: |
County
Executive Office (Approved) |
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Department contact person(s): |
Peter
DeMarco (714) 834-7250 |
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Jessica
Witt (714) 834-7250 |
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Subject: Approve Sole Source Contract
Renewal for Coalition Management Services
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ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Agreement to Form |
Discussion |
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3
Votes Board Majority |
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Budgeted: Yes |
Current Year
Cost: $25,000 |
Annual Cost: FY 2026-27 $75,000 |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: Yes |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 3/12/2024 #16, 3/22/2022 #45,
4/27/2021 #S54K |
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RECOMMENDED
ACTION(S):
Authorize the County Procurement
Officer or Deputized designee to execute Amendment No. Three to renew Contract
with Southwest Strategies, LLC for Spent Fuel Solutions Management Services at
San Onofre Nuclear Generating Station, effective March 22, 2026, through March
21, 2027, in the amount not to exceed $100,000 for a revised cumulative total
amount not to exceed $500,000.
SUMMARY:
Approval to renew Contract with
Southwest Strategies, LLC will allow continued coalition management services
for Spent Fuel Solutions, a coalition formed to advocate for the relocation of
spent nuclear fuel stored on site at the retired San Onofre Nuclear Generating
Station to a federally licensed offsite facility.
BACKGROUND
INFORMATION:
The San Onofre Nuclear Generating
Station (SONGS) operated in the northwest corner of San Diego County for more
than 45 years. Construction on the first of three units that would ultimately
be built at the site began in 1964 and, in 1968, Unit 1 began commercial
operation. Construction on Units 2 and 3 began in 1972 and commercial operation
began in 1983 and 1984, respectively. By April 1987, SONGS ranked second in
gross electricity generation in the United States, generating nearly 17.4
million megawatts.
After nearly 25 years of power
generation, Unit 1 was shut down in November 1992 and then largely
decommissioned in 2005. Units 2 and 3 remained operational until January 2012,
when the former was taken offline for routine maintenance and the latter was shut
down. In the same month, Southern California Edison (SCE) announced that both
units would remain shut down due to excessive wear found in the steam generator
tubes. By June 2013, SCE announced the permanent retirement of SONGS. Stored on
the site today are 123 canisters with 1,400 metric tons of spent fuel, a direct
byproduct of nuclear operations of over 45 years. Even after being taken out of
service, the nuclear waste remains radioactive. Its perpetual storage in
immediate proximity to the County is of concern for county residents and the
U.S. Navy and U.S. Marine Corps. SONGS is currently in year one of an
eight-year dismantlement process.
The Nuclear Waste Policy Act of
1982 created a timetable and procedure for establishing a permanent,
underground repository for high-level radioactive waste by the mid-1990s. In
addition, Congress designated the U.S. Department of Energy as responsible for
developing a disposal facility for the long-term management of spent nuclear
fuel from SONGS and other U.S. commercial nuclear power plants. At this time,
the federal government has failed to provide a permanent repository for spent
nuclear fuel from SONGS. The Nuclear Waste Policy Act also established a fee of
1 mill (one-tenth of one cent) per kilowatt-hour to provide for the eventual
disposal of spent nuclear fuel from commercial power plants. Through customer
cash contributions and accrued interest, the Nuclear Waste Fund has grown to
approximately $44 billion. Spent nuclear fuel can be safely stored on site at
SONGS for decades, but SCE cannot complete decommissioning of the plant and
restore the land until the federal government takes action to facilitate an
off-site solution. The County of Orange is committed to protecting the best
interests of its citizens, and to do so, SONGS must not be used as a perpetual
storage site for spent nuclear waste.
Spent Fuel Solutions (SFS) formerly
known as Action for Spent Fuel Solutions Now (ASFSN), is a coalition formed to
advocate for the relocation of spent nuclear fuel currently stored on site at
SONGS to a federally licensed offsite facility. SFS is governed by an executive
board composed of SCE, San Diego Gas & Electric, the County of Orange and
San Diego County. The executive board establishes the coalition’s goals and
directs its advocacy efforts to support the removal of spent fuel from SONGS to
a federally licensed facility. Shortly after the formation of the coalition,
the executive board approved shortening the coalition’s name from ASFSN to SFS
to improve name recognition.
On April 27, 2021, the Board of
Supervisors (Board) approved a resolution to participate in the coalition as a
supporting member. The Board also approved County staff and resources to be
used in furtherance of the coalition management services.
On March 22, 2022, the Board
approved the Sole Source Contract with Southwest Strategies, LLC, effective
March 22, 2022, through March 21, 2023, in an amount not to exceed $100,000,
renewable for one additional one-year term. Amendment No. One, to extend the
Contract for one additional year, was administratively approved in 2023.
On March 12, 2024, the Board
approved Amendment No. Two to renew Contract with Southwest Strategies, LLC for
two additional years from March 22, 2024, through March 21, 2026, in the amount
of $100,000 per year for a revised cumulative total amount not to exceed
$400,000.
Approval of Amendment No. Three
will renew the Contract and maintain the continued, uninterrupted support of
coalition management services. Day-to-day activities are managed by a coalition
manager under the direction of the executive board. The coalition manager is
Southwest Strategies, LLC, a San Diego based firm. The coalition’s actions
include encouraging federal leaders to pursue legislation, appropriations, and
consent-based siting for spent fuel storage/disposal facilities; mobilizing at
key points in the legislative process to advocate for necessary legislation and
appropriations; and securing a federally licensed storage or disposal solution
for the spent fuel stored at SONGS and other facilities.
The 2025-2026 County of Orange
Legislative Platform document includes the following Board-approved policy
statement to which this action applies:
INFRASTRUCTURE & ENVIRONMENTAL
RESOURCES: Policy Statement IN-41: Spent Nuclear Fuel: “Support efforts to
fully decommission the San Onofre site, and the timely removal and responsible
management of spent nuclear fuel storage.”
The proposed Amendment No. Three is
to renew the sole source Contract; the sole source justification was previously
approved by the County Procurement Office. Southwest Strategies, LLC is the
only vendor capable as they were selected by the SFS executive board to assist
the coalition with its day-to-day activities. Southwest Strategies, LLC offers
comprehensive expertise and capabilities, from research to planning to visual
communication to crisis management, in order to assist the coalition with
securing a federally licensed storage or disposal solution for the spent fuel
at SONGS. The vendor’s prices are commensurate with other contracts for
environmental consulting services. If the recommended vendor was not available,
the County would not be able to accomplish this task as Southwest Strategies,
LLC has already been selected by the SFS executive board and it is not in the
County’s purview to select another vendor. The County of San Diego – a partner
in this removal and relocation of spent nuclear fuel effort – executed its own
contract with Southwest Strategies, LLC, which is the same as the Contract for
the County. Prior to the expiration of the Contract, the County Executive
Office plans to explore various options for the continuation of the coalition management
services.
This Contract does not currently
include subcontractors or pass through to other providers. See Attachment B for
Contract Summary Form. The Orange County Preference Policy is not applicable to
this contract amendment.
Fifth District Supervisor Katrina
Foley represents the County of Orange as Executive Board Co-Chair.
The County Executive Office now requests
the Board’s authorization to execute the proposed Amendment No. Three to the
Contract with Southwest Strategies, LLC as referenced in the Recommended
Action.
FINANCIAL
IMPACT:
Appropriations for this Contract
are included in CEO Budget Control 017 for FY 2025-26 budget and will be
included in the budgeting process for future years.
The Contract includes provisions
allowing the County Executive Office to terminate the Contract, reduce the
level of services, and/or renegotiate the levels of services provided, as
necessary.
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A – Amendment No. 3 to MA-017-22011093 with Southwest Strategies, LLC
Attachment B – Contract Summary Form
Attachment C – Board Resolution No. 21-042