Agenda Item AGENDA STAFF REPORT ASR Control 23-001095
MEETING DATE:	03/12/24
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	5
SUBMITTING Agency/Department:	County Executive Office (Approved)
Department contact person(s):	Peter DeMarco (714) 834-5777
	Jessica Witt (714) 834-7250

Subject: Approve Renewal for Coalition Management Services

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: $25,000

Annual Cost: FY 2024-25 $100,000
FY 2025-26 $75,000

Staffing Impact:

# of Positions:

Sole Source: Yes

Current Fiscal Year Revenue: N/A

Funding Source: GF: 100%	County Audit in last 3 years: No
Levine Act Review Completed: Yes

Prior Board Action: 3/22/2022 #45, 4/27/2021 #S54K

RECOMMENDED ACTION(S):

Approve Amendment No. Two and authorize the County Procurement Officer or Deputized designee to renew Contract with Southwest Strategies, LLC for coalition management services, for the term of 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.

SUMMARY:

Approval of the Amendment to renew the Contract with Southwest Strategies, LLC will allow continued coalition management services for Spent Fuel Solutions Now, a coalition formed to advocate for the relocation of spent nuclear fuel currently 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 three 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 Now (SFSN) 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. SFSN is governed by an executive board composed of SCE, San Diego Gas & Electric, the County of Orange, the County of San Diego and the City of Riverside. The executive board sets goals and directs efforts to advocate for the removal of spent fuel from SONGS to a federally licensed facility.

On April 27, 2021, the Board approved a resolution to join the coalition as a supporting member. Fifth District Supervisor Katrina Foley represents the County of Orange as Executive Board Co-Chair. The Board also approved the use of County staff and resources to help support 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, extending the term for one additional year, was administratively approved.

Continued funding will help support coalition management services. Day-to-day activities are managed by a coalition manager under the direction of the executive board. The coalition manager has been identified as 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 at SONGS and other facilities.

The 2023-2024 County of Orange Legislative Platform document includes the following Board-approved policy statement to which this action applies:

INFRASTRUCTURE & ENVIRONMENTAL RESOURCES: San Onofre Nuclear Generating System. “Support efforts to fully decommission the San Onofre site and the timely removal and responsible management of spent nuclear fuel storage.” Page 34.

The proposed Amendment is a sole source contract and the sole source justification was approved by the County Procurement Office. Southwest Strategies, LLC is the only vendor capable as they were selected by the SFSN 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 SFSN executive board and it is not in the County’s purview to select another vendor. The County of San Diego executed its own contract with Southwest Strategies, LLC, which is the same as the existing Contract for the County.

This Contract does not currently include subcontractors or pass through to other providers. See Attachment C for Contract Summary Form. The Orange County Preference Policy is not applicable to this contract amendment. This item is coming to the Board within 30 days of the start date due to the additional review time necessary to finalize the Amendment.

FINANCIAL IMPACT:

Appropriations for this Contract are included in CEO Budget Control 017 for FY 2023-24 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. Two to #MA-017-22011093 with Southwest Strategies, LLC
Attachment B - Redline to Contract MA-017-22011093
Attachment C - Contract Summary Form
Attachment D - Board Resolution No. 21-042