Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  20-001035

 

MEETING DATE:

01/26/21

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 

 

 

Amy Hernandez (714) 347-8903

 

 

Subject:  Approve 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:   $123,750

Annual Cost: FY 2021-22 $375,000
FY 2022-23 $375,000
FY 2023-24 $251,250

 

 

 

    Staffing Impact:

No

# 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

 

 

    Prior Board Action:         05/22/2018 #22

 

RECOMMENDED ACTION(S):

 

 

1.

Authorize the County Procurement Officer or authorized Deputy to execute a Contract with Team Legal, Inc. for legal process services commencing on February 1, 2021, through and including January 31, 2024, in an amount not to exceed $1,125,000, renewable for two additional one-year terms.

2.

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 contract amount for the first year of the contract, for the entire term 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 the contract with Team Legal, Inc. for legal process services will enable the Department of Child Support Services to establish and enforce court orders for the financial and medical support of children.

 

 

 

BACKGROUND INFORMATION:

 

The Department of Child Support Services (CSS) enhances the quality of life for children and families by establishing and enforcing court orders for the financial and medical support of children.  As a standard business practice, 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.

 

CSS obtained Board of Supervisors (Board) authorization on May 22, 2018, to execute a three-year contract with Team Legal, Inc. (Team Legal) for legal process services commencing on July 1, 2018, through June 30, 2021, in an amount not to exceed $1,125,000 renewable for two additional one-year terms.

 

On December 4, 2019, CSS received a request from Team Legal to increase the legal process service rates by 12 percent, due to California Assembly Bill 5 (AB5), which would be effective January 1, 2020. AB5 requires companies that hire independent contractors to reclassify them as employees, with some exceptions.  At the time Team Legal was unable to determine the operational impact of complying to the legislation but anticipated a 30 percent increase to service rates. Upon consulting with County Counsel, it was determined the increase was substantial enough to require Board approval and/or reissuing the Request for Proposal (RFP). Through the RFP process, the service rates increased approximately 15 percent, which was consistent based on the proposals reviewed. The 15 percent is attributed to increased costs for establishing business agreements with process servers.

 

CSS opted to release an RFP on July 28, 2020, to ensure the impacts of AB5 were considered and evaluated in the process. The RFP closed on August 28, 2020, and CSS received five responsive proposals from the following contractors:

 

  •  American Eagle Attorney Service, Inc.
  •  DBM Private Investigator
  •  Jones Legacy Group
  •  Madden Corporation DBA ProLegal
  •  Team Legal

 

An evaluation committee consisting of three members with experience in legal process services evaluated proposals in accordance with the criteria outlined in the RFP and scored each proposal using pre-established weighting factors. The evaluation process consisted of two phases: an evaluation of the written proposal and an oral presentation. Only the top-ranked offerors were invited to the second phase. 

 

The evaluation committee recommended top-ranked proposer Team Legal for contract award. Reference checks were completed in the evaluation process and Team Legal received satisfactory reviews from San Diego Department of Child Support Services (DCSS) and Santa Clara DCSS.

 

No protests were received after CSS issued the Notice of Intent to Award. CSS concurred with the recommendation provided by the evaluation committee and is seeking Board authorization to execute a three-year contract with Team Legal for the legal process services, effective February 1, 2021, through January 31, 2024, in an amount not to exceed $1,125,000.

 

Due to COVID, CSS experienced a decrease in the required legal process services; however, the volume for these services fluctuates based on need. Furthermore, CSS is requesting the Board approve a 10 percent contingency as allowed by the Contract Policy Manual Section 3.3-113 to allow flexibility if there is an increase in the need for services.

 

Team Legal has demonstrated compliance with the AB5 legislation. CSS’s past and present experience with Team Legal has been confirmed as at least satisfactory. CSS has verified there are no concerns that must be addressed with respect to Contractor’s ownership/name, litigation status or conflicts with County interest.

 

This contract includes subcontractors. Due to the nature of services required by CSS, this contract could require additional subcontractors. In order to add subcontractor(s) to the contract, the contractor must seek express consent from CSS. Should the addition of a subcontractor affect the scope of work and/or contract amount, CSS will bring the item back to the Board for approval. See Attachment D for information regarding subcontractors and Contract Summary Form.

 

This Board item includes a proposed term beginning February 1, 2021, which is less than 30 days after the Board date. This date is flexible and can be amended to commence more than 30 days from now as CSS current legal process service contract term ends June 30, 2021. Due to AB5, legal process service vendors have experienced increased costs beginning January 1, 2020 and therefore the intent of this item is to begin the new contract as soon as possible. January 26, 2021 is the first Board date in which all RFP information is available to present to the Board.

 

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

 

 

 

FINANCIAL IMPACT:

 

Appropriations for this contract are included in Budget Control 027 FY 2020-21 Budget and will be included in the budgeting process for future years.

 

The contract contains language permitting reduction or termination without penalty if approved funding or appropriations are reduced or terminated.

 

 

 

STAFFING IMPACT:

 

N/A

 

 

ATTACHMENT(S):

 

Attachment A – Contract MA-027-21010762
Attachment B – Rating Summary
Attachment C – Individual Scoring Sheets
Attachment D – Contract Summary Form