SUBJECT/RECOMMENDATION:
Title
Approve a Construction Contract and Purchase Order to Bandes Construction Company, for the new Air Park Terminal project in the amount of $13,659,750.00 per Invitation to Bid (ITB) 23-0015-AP and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Clearwater Executive Airport (CLW) is owned and operated by the City of Clearwater. Through the combination of state aviation grant funding and private sector participation from the airport’s FBO operator, the City will modernize Clearwater Executive Airport’s facilities while maximizing outside funding sources and reducing financial impact on City resources. The project will significantly enhance operational efficiency, improve airfield safety, and support continued aviation activity and economic development within the region.
The airport operates under a long-term Lease and Property Operating Agreement with FlyUSA, Inc., which serves as the airport’s Fixed Base Operator (FBO). Under this agreement, FlyUSA is responsible for operating the terminal facility and providing aviation services including fueling, hangar and tie-down management, flight training, aircraft services, and other aeronautical activities. In addition, FlyUSA is responsible for reimbursing the City for the majority of the required local match associated with FDOT grant funding for the terminal facility and certain related improvements, ensuring private investment also contributes to the project’s design and construction.
This project consists of three Bid Packages; all are integral to the completion of the Air Park project. Bandes Construction Company was selected through ITB 23-0015-AP and is the lowest responsive bidder out of five responses received. Construction duration is 18 months from issuance of the notice to proceed.
Bid Packages A includes the design and construction of a new 17,800-square-foot, two-story terminal facility at the Clearwater Executive Airport (formerly Clearwater Airpark). The terminal will accommodate a Fixed Base Operator (FBO), flight training school, flight simulator, and corporate offices and amenities for airport tenants.
Bid Package B includes the project scope associated with terminal apron improvements, entrance roadway, and the design of a 200-space surface parking lot to support the new terminal operations.
Bid Package C is additional airfield improvements that include lined dry stormwater retention ponds with underdrain piping, bituminous mill and overlay of aprons and taxi lanes, taxiway reconstruction and reconfiguration compliant with Federal Aviation Administration (FAA) and Florida Department of Transportation (FDOT) regulations, and sealcoating and remarking of various airfield pavements.
The Clearwater Executive Airport Terminal and related projects are supported by significant state aviation grant funding secured by the City through FDOT. To date, the City has secured $7,797,788 in FDOT aviation grant funding. These grants provide substantial participation from the State of Florida and significantly offset the overall capital cost associated with the airport improvements.
The City is not responsible for cost overruns associated with the terminal or parking lot components. The City responsibility for the terminal and parking lot is limited to $760,000 (future Penny funding) based on the current lease agreement between the City and FlyUSA.
The City is financially responsible for the mill and overlay, apron, and specific airfield improvements of the project (Bid Package C), except for a $94,447 contribution provided by FlyUSA.
The total project budget for the Apron Relayment and Aviation Operations Center projects, including design and construction costs, is anticipated to be approximately $14,735,000. Approved budgets total $11,885,235 which includes future Penny funding of $760,000 available in fiscal year 2026/27. A mid-year budget amendment will increase project G2307-Aviation Operations Center by $400,000 to recognize an approved FDOT Grant not currently included in the approved budget.
If approved, additional resources which total $2,499,765 will need to be allocated. Of this total, $350,000 is required by the City to fund Apron Relayment costs. The remaining funding for cost overages exceeding the FDOT grant amount for terminal construction will be the responsibility of the City’s FBO (per Article 12, section 1, paragraph b, of the Lease and Property Operation Agreement between the City and FlyUSA). City staff is currently pursuing additional grant funding from FDOT to align the grant request with total construction costs now defined.
APPROPRIATION CODE AND AMOUNT:
3027302-563600-G2307 $11,203,936
3027302-563600-G2306 $ 2,455,814
Mid-year budget amendments will increase capital project G2306, Apron Relayment by $350,000 representing an allocation of Airpark Fund reserves; and increase capital project G2307, Aviation Operations Center by $400,000 in FDOT Grant revenue and $2,099,765 representing reimbursement revenues from FlyUSA to provide additional project funding necessary for this construction contract.
USE OF RESERVE FUNDS:
Funding for this contract will be provided by a mid-year budget amendment allocating Airpark Fund reserves in the amount of $350,000 to capital improvement project G2306, Apron Relayment. The remaining balance of Airpark Fund reserves after 25% working capital reserves is approximately $869,567 or 33% of the current Airpark Fund operating budget.
STRATEGIC PRIORITY:
1.2 Maintain public infrastructure, mobility systems, natural lands, environmental resources, and historic features through systematic management efforts.
2.3: Promote Clearwater as a premier destination for entertainment, cultural experiences, tourism, and national sporting events.
