One of the Airport's larger revenue generating concessions is the Automobile Parking Concession.  Staff has advertised for qualified concessionaires to bid on the opportunity to operate 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.  A Request for Bids packet was sent to all interested parties. 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 a percentage of the gross receipts back to the City as the fee to run the concession (i.e., the concession fee). During the bid process, the City generally accepts the bid that provides the Airport with the highest percentage of the gross revenues generated by the Parking Concession, so long as other conditions specified in the Request for Bids are met.

Bids will be opened on December 6, 2011 at 2:00 p.m.  The bids will be evaluated on the Minimum Annual Guarantee (MAG) and the Percentage of Gross Revenues to be remitted to the Airport.   Bid results will not be available by the deadline for the December 12 meeting, so staff is recommending that the contract award be delayed until the City Council's December 19 meeting.

The Parking Concession generates approximately $2,200,000 in gross revenues from which the concessionaire remits the percentage that was bid to the City. This will generally result in revenues for the Airport operation between $1,700,000 and $1,900,000 annually, depending on the total gross revenues generated.

Staff recommends the City Council delay award of the new Parking Concession until December 19 to give staff additional time to analyze the bids received prior to making a recommendation to the City Council.