Staff recommends approval of the new five-year Automobile Public Parking Concession Agreement with SP Plus, LLC.

One of the Airport's larger revenue-generating concessions is the Automobile Public Parking Concession.  This concession is operated by a professional parking vendor that has been selected by an RFP process.  The current public parking lot access control equipment is in need of equipment upgrades and replacements and a new concession agreement.   An RFP process was initiated on February 27, 2026, and concluded with the receipt of proposals on March 26, 2026.  A selection committee reviewed the proposals received and recommended awarding a new agreement to SP Plus, LLC, the incumbent operator. City Council approved award of the agreement to SP Plus, LLC on April 27, 2026, with approval of the final agreement to follow completion of the details.

Staff advertised for qualified concessionaires to submit proposals for operating the Automobile Public Parking Concession for a five (5) year term beginning June 1, 2026.  The RFP Notice was advertised on February 27, 2026, March 6 and 13, 2026, in the Yellowstone County News, the City of Billings website and the Billings Logan International Airport (BIL) website.  This Concession oversees the operation of the Airport's paid public parking lots, which consist of 143 short-term parking stalls, 234 long-term premium parking stalls directly across from the Terminal Building, 625 long-term parking stalls and 350 economy lot parking stalls. The concessionaire collects all parking revenues and remits the higher of either 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 RFP requires the successful concessionaire to provide new access control and revenue reporting equipment, with a focus on the use of technology for more efficient operations, improved exit traffic flow, customer service and to assist the Airport with shuttle service to the Terminal Building each year during the peak holiday season. The new agreement will also incorporate the parking rates updated effective July 1, 2025, as the rates for year one of the Agreement, provide for a bi-annual rate review, and incorporate periodic rate adjustments to keep pace with comparable airport parking markets.

Based on the RFP specifications, SP Plus LLC's offer presented the best cost/revenue option for the Airport with no capital expenditure required by the Airport. The City Council approved award of the new concession agreement to SP Plus, LLC at their April 27th meeting.  The details of the final agreement have now been finalized and the final agreement is now before the City Council for approval.
 

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.   Calendar Year 2025 Gross Receipts totaled $4,495,619.  The recommended bid from SP Plus, LLC will generate approximately $3,400,000 in revenues for the Airport operation in the first year, based on $4,000,000 in annual gross receipts, and approximately $17,000,000 over the entire five-year agreement term.

The City Council may:

•  Accept the new five (5) year Agreement with the parking vendor; 
•  Disapprove the new five (5) year Agreement with the parking vendor.