Agenda Item AGENDA STAFF REPORT ASR Control 23-000926
MEETING DATE:	12/05/23
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	All Districts
SUBMITTING Agency/Department:	Child Support Services (Approved)
Department contact person(s):	Juana Larios (714) 347-4955
	Gladys Hayashi (714) 347-4901

Subject: Renewal of Contract with Team Legal, Inc.

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: $218,750

Annual Cost: FY 2024-25 $156,250

Staffing Impact:

# of Positions:

Sole Source: No

Current Fiscal Year Revenue: N/A

Funding Source: FED: 66% (Title IV-D), State: 34% (Title IV-D)	County Audit in last 3 years: No
Levine Act Review Completed: Yes

Prior Board Action: 1/26/2021 #11

RECOMMENDED ACTION(S):

Authorize the County Procurement Officer or Deputized designee to execute Amendment # 1 to renew and amend the service contract with Team Legal, Inc. for legal process services commencing February 1, 2024, through and including January 31, 2025, in an amount not to exceed $375,000, renewable for one additional one-year term, for a revised cumulative total contract amount of $1,500,000.

Authorize the County Procurement Officer or authorized Deputy to make ministerial or non-material changes to the contract and contract amendments.

Pursuant to Contract Policy Manual Section 3.3-113, authorize the County Procurement Officer or authorized Deputy to exercise a contingency contract cost increase, not to exceed a total of 10 percent of the annual Contract amount for the first year of the Contract, including renewals, and within the scope of work set forth in the contract. The use of this contingency contract cost increase is subject to approval requirements established by the County Procurement Officer.

SUMMARY:

Approval of Amendment # 1 for legal process services with Team Legal, Inc. will allow the Department of Child Support Services to establish and enforce court orders for the financial and medical support of children.

BACKGROUND INFORMATION:

In accordance with Family Code 17402, the Department of Child Support Services (CSS) will establish and enforce court orders for the financial and medical support of children. In support of services and to establish court orders, CSS contracts for legal process service to personally serve legal documents, including, but not limited to: Summons and Complaints; Summons and Petition; Order to Show Cause in Regarding Contempt; Registration of Foreign Support Order; Subpoenas; Expedited Process; Judgment Debtor Exam, Judgment; Court Order after Hearing; Wage Assignments; and Order to Defendant. The establishment of support orders contributes to the quality of life for children and families.

On January 26, 2021, as the result of a Request for Proposals, the Board of Supervisors (Board) authorized Contract MA-027-21010762 with Team Legal, Inc. for the provision of legal process services in support of CSS for a three-year term in an amount not to exceed $1,125,000, renewable for two additional one-year terms; and authorized Deputy to exercise cost contingency increase not to exceed 10 percent under certain conditions and execute contracts.

CSS is seeking the Board’s authorization to execute the contract renewal with Team Legal, Inc., for a one-year term, for the period of February 1, 2024, through and including January 31, 2025, in an amount not to exceed $375,000, with the option to renew for one additional one-year term. The Orange County Preference Policy is not applicable to this contract renewal.

CSS has developed Key Performance Indicators to monitor the Contractor’s performance. Team Legal, Inc. has maintained an Outstanding rating based on the County’s Contractor Performance Evaluation criteria.

Key Performance Indicators	Contractor Performance Evaluation Rating	Achieved Rating %
Due Diligence - measures the steps taken to serve a document to satisfy requirement, such as appropriate number of attempts and when the attempts were made.	100% - 81%	100%
Summons and Complaints (S&C) proof of service returned within 7 business days of successful service.	100% - 81%	95%
Declaration of Non-Service (DONS) returned within 7 business days of terminating service.	100% - 81%	94%

During the renewal process, Team Legal, Inc. requested an increase in their respective rates, which have not been updated since the contract’s commencement in 2021. See Attachment A. The request increases the flat rate for legal process service. The service rate in Orange County and the Surrounding Counties will increase from $45 to $50, resulting in an 11 percent increase, which impacts 94 percent of the services in the contract. The flat rates for the the remaining 6 percent of the services conducted outside of the Surrounding Counties will increase by an average of 20 percent. Several market factors have impacted the legal process services industry, specifically the increase in competitors’ rates to recruit and retain process servers. Team Legal, Inc. is requesting an increase to recruit and retain employees to minimize impacts to services and remain competitive. Additionally, Team Legal, Inc. has been impacted with the increase in fuel costs, as legal documents are delivered personally. These factors led Team Legal, Inc. to request an adjustment to the rates charged to the County. The rate increase will be absorbed in the existing annual amount of $375,000 due to fluctuating use of the contract and decrease in caseload and case openings.

In accordance with Board policy pertaining to service contract renewals, CSS will return for Board approval to execute additional renewals.

The Contractor's performance has been confirmed as satisfactory. CSS has verified there are no concerns that must be addressed with respect to Team Legal, Inc.'s ownership/name, litigation status or conflicts with County interests.

This contract includes subcontractors. See Attachment D for information regarding subcontractors and the Contract Summary Form. Due to the nature of the services, this contract could require the addition of subcontractors. Should the addition of a subcontractor affect the scope of work and/or contract amount, the department will bring the item back to the Board of Supervisors for approval.

FINANCIAL IMPACT:

Appropriations for this renewal are included in Budget Control 027 FY 2023-24 Budget and will be included in the budgeting process for FY 2024-25. The Contract includes provisions allowing the Department of Child Support Services to terminate the Contract, reduce the level of services, and/or renegotiate the levels of services provided, as necessary, if funding is not available.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A – Amendment #1 to Contract MA-027-21010762
Attachment B – Family Code
Attachment C – Redline Contract
Attachment D – Contract Summary Form