HomeMy WebLinkAbout2009-01-26 09-064 ORDERCOUNCIL ACTION
Item No.
Date: January 26, 2009
Item/Subject: ORDER, Denying ExxonMobil's Request for the City of Bangor's Consent to Assign
Exclusive Agreements between ExxonMobil and the City of Bangor to Western
Petroleum Company of Minnesota.
Responsible Department: Airport
Commentary:
The City of Bangor has enjoyed a good working relationship with ExxonMobil and its predecessor, Humble
Oil, over the past 40 years. Due to recent changes in Maine's Unitary Income Tax laws, doing business in
the State of Maine has become more costly for ExxonMobil. These changes prompted ExxonMobilto request
that the Cityof Bangor consent to an assignment its exclusive agreements to Western Petroleum of
Minnesota. After careful consideration and review of the Western Petroleum presentations to the Council,
independent research, consultations with airline and other airport users, as well as meetings and other
communications between Western Petroleum and the Airport, it is evident that consenting to an assignment
to Western Petroleum would not be in the best interests of Bangor and the public it serves. Concerns
influencing the decision include Western Petroleum's lack of experience with an airport as large as Bangor;
Western Petroleum's ability to ensure an adequate supply of fuel since it is not an independent producer like
Exxon; and the potential increase in costs to commercial airline customers. Given the current state of the
economy, such increases could likely result in reduced scheduled passenger air service at Bangor, directly
harming the Airport and the traveling public it serves.
This Order will deny ExxonMobil's request for the City's consent to assign the agreements and will direct the
City Manager to notify ExxonMobil of the Council's decision.
Rebecca Hupp
Department Head
Manager's Comments:
This has been reviewed by the Transportation and Infrastructure Committee and in Council workshops
and is recommended for approval.
M
Associated Information:
Budget Approval:
finance Director
Legal Approval:
Solicitor
Introduced for
X Passage
First Reading
Referral
Assigned to Councilor Hawes January 26, 2009
CITY OF BANGOR
(TITLE.) ORDER, Denying ExxonMobil's request for City of Bangor's Consent to Assign
Exclusive Agreements between ExxonMobil and the City of Bangor to Western
Petroleum Company of Minnesota.
WHEREAS, The City of Bangor and ExxonMobll have enjoyed a good working
relationship for the past 40 years and have several exclusive Agreements;
and
WHEREAS, recent changes in Maine's Unitary Income Tax laws have made doing
business in the State of Maine more costly for ExxonMobll; and
WHEREAS, as a result of these changes, ExxonMobilhasrequested that the City of
Bangor consent to an assignment of the exclusive agreements between
the City of Bangor and ExxonMobil to Western Petroleum of Minnesota;
and
WHEREAS, the City's concerns include Western Petroleum's lack of experience with an
airport as large as Bangor; Western Petroleum's ability to ensure an
adequate supply of fuel since it is not an independent producer like Exxon;
and the potential for increases in costs to commercial airline customers;
and
WHEREAS, given the current state of the economy, such increases could likely result
in reduced scheduled passenger air service at Bangor, directly harming the
Airport and the traveling public it serves; and
WHEREAS, after careful consideration and review of the Western Petroleum
presentations to the Council, independent research, consultations with
airline and other airport users, as well as meetings and other
communications between Western Petroleum and the Airport, it has
become evident that consenting to an assignment of the City of Bangor's
Agreements with ExxonMobil to Western Petroleum would not be in the
best interests of City of Bangor and the public it serves.
39 061
NOW, THEREFORE, BE IT ORDERED BY THE CM COUNCIL OF THE CITY OF
BANGOR,, That
the City of Bangor will not consent to ExxonMobil's request to assign the Agreements
between ExxonMobil and the City of Bangor to Western Petroleum Company of
Minnesota.
BE IT FURTHER ORDERED THAT the City Manager is directed to send a copy of this Order to
ExxonMobll and Provide notice of the City Council of the City of Bangor's decision not to
consent to ExxonMobil's request to assign its interests in the Agreements by and between the
City of Bangor and ExxonMoblil
IN CITY COUNCIL
January 26, 2009
Motion Mande and Seconded
for Passage
Pas4ed
CITY CLERK
fTITLE) Denying ExxonMobil's request
or City of Bangor's Consent to Assign
Exclusive Agreement between Exxonmobile
and the City of Bangor to Western
Petroleum Company of Minnesota
Assigned to Councilor ut