Title
Airports, a division of the Chief Administrative Office, recommending the Board:
1) Approve and authorize the Purchasing Agent to sign perpetual subscription service Agreement 10180 with QTPOD, LLC for an annual amount of $1,195 and a retroactive term effective December 1, 2025, for an initial one-year term with automatic renewals of successive one-year terms unless terminated in accordance with the agreement provisions; and
2) Authorize the Purchasing Agent to establish change orders in FENIX to add funds to the subscription service agreement with QTPOD, LLC as necessary to process associated payments for future fiscal years.
FUNDING: Placerville Airport Enterprise Fund.
Body
DISCUSSION / BACKGROUND
The subscription service agreement with QTPOD, LLC (QTPOD) is required for the operation of the existing M4000 self-serve fuel terminal to process credit card transactions for fuel sales at the Placerville Airport. QTPOD’s subscription service agreement provides cloud-based access and grants the County a limited, non-exclusive, non-transferable license to use QTPOD’s proprietary Siteminder Fuel Management Software, together with database hosting services, software updates, 24/7 technical support, and any and all intellectual property. The services allow Airports Division staff to perform fuel management tasks from any computer or tablet with internet connectivity.
The Airports Division has utilized QTPOD’s subscription services for many years. The last agreement with QTPOD was approved by the Board on June 23, 2020. The County has been paying a fee of $945 for QTPOD’s subscription services on an annual cycle from December 1 to November 30 of each year. QTPOD has not changed its fees since 2017 and because everything associated with its products has increased in cost since that time, including parts, labor, and other overhead, QTPOD requires a fee increase.
QTPOD created a new agreement to allow for the fee increase and changed some of its other contract provisions from the prior agreement. County Counsel reviewed the new agreement and required language changes and had some language revision requests. The County negotiated with QTPOD on the language changes, which took some time going back and forth with QTPOD’s legal department and County Counsel, and the process was not completed in time for the initial term date, which was to start on December 1, 2025. QTPOD has continued to provide the services without interruption, and the Airports Division requests that the Board approve the agreement with an effective date of December 1, 2025.
The initial annual Base Plan fee in the new subscription service agreement is $1,195. Section 2.2, Adjustment of Fees, in the subscription service agreement allows QTPOD to adjust the fees at the start of any renewal term. Should QTPOD intend to adjust the fees, they will provide the Airports Division with notice of the fee change at least 120 days prior to the expiration of the then current term.
The subscription service agreement does not have a stated end date and instead has an initial term of one year and automatically renews for successive one-year terms unless terminated in accordance with the agreement provisions.
In accordance with Board of Supervisors Procurement Policy C-17, Section 2.4, Perpetual Agreements, because the amount to be expended within the first thirty-six months of the agreement is anticipated to be within the Purchasing Agent’s authority, the Airports Division does not anticipate returning to the Board annually for this subscription service agreement.
ALTERNATIVES
The Board could choose not to approve the QTPOD subscription service agreement, resulting in the Airports Division’s inability to facilitate credit card processing for fuel sales at the Placerville Airport self-serve fuel pumps. Alternative methods to deliver this service would need to be identified, resulting in significantly increased associated costs and a disruption to fuel sales at the Placerville Airport, including fuel sales for aircraft providing emergency services such as life-flights and firefighting services.
PRIOR BOARD ACTION
Legistar file 20-0770 - June 23, 2020 - Approve the initiation of a perpetual subscription service agreement with QTPOD, LLC.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The initial annual fee for the subscription service agreement is $1,195, which is in the Airports Division’s Fiscal Year 2025-26 budget and Fiscal Year 2026-27 budget request, and will be included in future budget requests.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Laura Schwartz, Assistant Chief Administrative Officer, Airports Director