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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