The City entered into an Automobile Parking Concession Agreement with Standard Parking Corporation on October 12, 2004, to operate the public parking lots at Billings Logan International Airport. The Agreement was for a five-year term commencing November 1, 2004, and ending on October 31, 2009. The Airport recently completed its Master Plan, which included recommendations for the expansion of the Airport's parking. The Airport will now proceed with an in-depth review of all parking facilities and needs in terms of overall parking for the public, employees, and the rental car companies that operate at the Airport. Because significant parking enhancements (i.e., a parking garage) are so expensive, the ability of the Airport and its Airline tenants to fund such a venture could be difficult at this time given the recent downturn of the economy.  Staff worked with Standard Parking Corporation on Amendment One to extend the term of the Agreement for an additional year and establish a new expiration date of October 31, 2010, to permit the Airport adequate time to complete its comprehensive parking review for parking enhancements and funding strategies that may be incorporated into the next Parking Concession bid process. Additionally, due to both the recession and downturn in the aviation industry, parking activity in the public lots has also been negatively impacted. Therefore, Amendment One also provides assurance to Standard Parking that it can meet its operating costs to operate the Airport's public parking lots by setting a guaranteed minimum annual revenue amount for Standard Parking of $304,000.

The Council may:

1. Extend the Agreement for an additional year, which would provide time for the comprehensive parking review prior to bidding another multi-year agreement, or
2. Bid the parking concession operation before the completion of the comprehensive parking review, and potentially limiting the Airport's ability to craft a new Concession Agreement that might include some funding opportunities for any proposed parking enhancements identified by the comprehensive parking review.

The Airport's parking concession generates significant annual revenue for the City's Airport. The concession revenue is based on a graduated percentage of gross receipts at certain gross receipt thresholds. During the last year of the Agreement, November 1, 2008, through October 31, 2009, the parking concession generated $1,804,363.61 in rental revenue for the Airport. The projected revenue for the additional year of the Agreement is estimated to be approximately the same.

Staff recommends that Council approve Amendment One, which extends the term of the Automobile Parking Concession Agreement with Standard Parking Corporation for one year, establishes a new expiration date of October 31, 2010, and provides Standard Parking with a guaranteed minimum annual revenue amount of $304,000.