The current Display Advertising Concession Agreement expires on June 30, 2010. Staff has advertised for the opportunity for qualified concessionaires to submit proposals to operate the five (5) year Terminal Building Display Advertising Concession. A Request for Proposal (RFP) packet was sent to eight (8) interested parties. This concession oversees the Airport's Terminal Building display advertising program, which consists of approximately 26 backlit wall mounted signs, and one backlit reservation board with 22 locations for advertising. The signs are located in the baggage claim area of the Airport Terminal Building. The concessionaire sells and collects all advertising revenues and remits a percentage of the gross receipts to the City (i.e., the concession fee). The Airport held a pre-proposal meeting on April 28, 2010, with three (3) interested firms participating. Proposals were received on May 7, 2010, from the following firms: Advanced Wall Advertising, Billings, Montana, and the incumbent concessionaire, Epcon Sign Company, Billings, Montana. In evaluating the two responses, the proposal from Advanced Wall Advertising was deemed non-responsive, as it failed to provide the requested information and documentation and failed to include the entire advertising area. Epcon's proposal met all of the requirements of the RFP and its advertising pricing structure was at an appropriate level for our area. Additionally, Epcon has a familiarity with the Airport advertising display area and an established history with airport advertising.

Alternatives for Council consideration include rejecting the sole responsive bid and directing staff to seek new proposals for the concession, or accepting the Staff's recommendation of Epcon Sign Company and entering into a new five (5) year agreement.

The Advertising Concession generates approximately $110,000 per year in gross revenues from which the recommended Concessionaire, Epcon Sign Company, would remit 67% to the City in Contract Years 1 and 2, 68% in Years 3 and 4, and 70% in Year 5. This will result in revenues for the City's Airport operation of approximately $73,700 - $77,000 annually, depending on the total gross receipts generated.

Staff recommends that Council award the five (5) year Airport Advertising Concession to Epcon Sign Company, for a term beginning July 1, 2010 and ending on June 30, 2015.