SUBJECT/RECOMMENDATION:
Title
Accept Florida Department of Transportation (FDOT) Grant Agreement Amendment No. 2 (Financial Project No. 450563-1-94-01) in the amount of $790,369 for the Construction of Terminal Building at Clearwater Executive Airport and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
On January 12, 2023, City Council approved the Lease and Property Operating Agreement (Operating Agreement) with FlyUSA to manage Clearwater Executive Airport and subsequently approved the First Amendment to the Lease and Property Operating Agreement on March 7, 2024.
On September 4, 2024, City Council approved Resolution 24-12 and the original Public Transportation Grant Agreement with the Florida Department of Transportation (FDOT) in the amount of $1,500,000.
On March 30, 2026, City Council approved Amendment No. 1 to the FDOT Grant Agreement, increasing total project funding to $7,800,000, with FDOT participation of $3,900,000 (50%) and a required local match of $3,900,000 (50%).
Amendment No. 2 provides an additional $790,369 in FDOT funding, increasing the total project cost to $9,380,738, with FDOT participation of $4,690,369 (50%) and a required local match of $4,690,369 (50%).
This increase reflects additional FDOT participation for Fiscal Year 2026 and bridges the remaining funding gap between total grant funding to date and the awarded Bandes Construction contract for the terminal project.
Consistent with the Operating Agreement, FlyUSA is responsible for reimbursing the City for applicable portions of the local match and covering project cost overruns not funded through FDOT participation.
APPROPRIATION CODE AND AMOUNT:
Capital project G2307, Aviation Operations Center, was established for this project funded by FDOT grant funding, Penny for Pinellas, and FlyUSA reimbursements.
A mid-year budget amendment will increase FDOT revenues budgeted in the project by $790,369 offset by the same decrease Fly USA reimbursement to true up budgeted revenue sources.
STRATEGIC PRIORITY:
High Performing Government: 1.2 Maintain public infrastructure, mobility systems, natural lands, environmental resources, and historic features through systematic management efforts.
Economic & Housing Opportunity: 2.2 Cultivate a business climate that welcomes entrepreneurship, inspires local investment, supports Eco-friendly enterprises, and encourages high-quality job growth.
