One of the Airport's larger revenue generating concessions is the Automobile Parking Concession. Staff advertised for qualified concessionaires to bid on operating the Parking Concession for a five (5) year term beginning January 2, 2012. Advertisements to bid the Automobile Parking Concession were placed in the Billings Times on November 10 and 17, 2011, the American Association of Airport Executives (AAAE) weekly Airport Express, and on the City's Website.  This Concession oversees the operation of the Airport's paid parking, which consists of 195 short term parking stalls and 650 long term parking stalls located in front of the Airport Terminal Building. The concessionaire collects all parking revenues and remits the higher of a percentage of the gross revenues or a Minimum Annual Guarantee (MAG) to the City as the fee to run the concession (i.e., the concession fee). 

The Invitation for Bids also requires the successful concessionaire to provide over $200,000 of replacement revenue control equipment, including new fee computers, to meet the current Credit Card Industry Data Security Standards.  This equipment will include a credit card self-pay system in one of the exit lanes to more quickly move the traffic out of the parking lots.  

Additionally, since parking rates have not been adjusted at the Airport over the past four (4) years, the new Agreement reflects a $0.25 per half hour increase in the short term parking rate, up to $14.00 for a 24-hour period, and a $0.25 per hour increase in the long term parking rate, up to $8.50 for a 24-hour period (a $1.00 increase) beginning in Year One of the Agreement.  A similar increase will take place in Year Four of the Agreement.  The bidders utilized these rates to calculate their bids.  Sealed bids were opened on December 6, 2011. Diamond Parking, Republic Parking, and Standard Parking submitted bids, as tabulated below.   Based on the specifications, Standard Parking's bid presents the highest revenue to the Airport.  Attachment 1 shows the bid analysis.

A copy of the Concession Agreement is available for review in the City Clerk's office.

The City Council may:

•  Accept the bid from Standard Parking and enter into a new five (5) year Agreement with Standard Parking; 
•  Reject the bid from Standard Parking and award the Agreement to one of the other bidders; or 
•  Direct staff to reject all bids and re-bid the Automobile Parking Concession.

For each year of the term, the concessionaire will remit either the stated percentage of actual gross receipts, or the stated annual MAG, whichever is greater.   The recommended bid from Standard Parking will generate approximately $1,925,000 in revenues to the Airport operation in the first year, based on $2,200,000 in annual gross receipts, and approximately $10,572,000 over the entire five-year agreement term.

Staff recommends that City Council award the five (5) year Airport Automobile Parking Concession Agreement to Standard Parking, for the term beginning January 2, 2012 through January 1, 2017.