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HomeMy WebLinkAbout2009-05-27 09-185 ORDERCOUNCIL ACTIO Item No. 09 i85 -- Date: QDate: May 27, 2009 Item/Subject: ORDER, Authorizing the City Manager to Enter into an Agreement with ExxonMobil for the Purchase of its Interest in Assets and Fuel Trucks at Bangor International Airport. 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. In January 2009, ExxonMobil notified the City of its intent to not renew its agreement to provide jet fuel to the airport for an additional term. In accordance with the original lease, the Airport has the option to purchase ExxonMobil's assets at the Airport. As these assets have value to the Airport, the Airport recommends purchasing them. In addition, ExxonMobil owns a fleet of fuel trucks at the Airport which the Airport will need for future operations. The Airport has been in discussions with ExxonMobil for some time regarding the purchase of these assets and equipment. While the price for the transaction has not yet been finalized, the City and ExxonMobil are close to an agreement and we are hopeful that one will be reached prior to the Council meeting. Since the Airport is on a tight time line to transition to a new fuel provider and to ensure that adequate fueling equipment is available to service customers, the attached order would authorize the necessary transactions. It will, however, require an amendment to insert the final price. Rebecca HM Department Head Manager's Comments: This has been reviewed by the Business and Economic Development Committee and in Council workshops and is recommended for approval subject to the final negotiated price meeting the Council's guidelines. -A�2 AA '"? C\1/ City Manager Associated Information: Budget Approval: Finance Director Legal Approval: City Solicitor Introduced for X Passage First Reading Referral Page 1 of 1 39 185 Assigned to Councilor Bronson May 27, 2009 CITY OF BANGOR �_B?•v�o,s (TITLE.) ORQEk Authorizing the City Manager to Enter into an Agreement with ExxonMobil for the Purchase of its Interest in Assets and Fuel Trucks at Bangor International Airport. WHEREAS, The City of Bangor and ExxonMobil have enjoyed a good working relationship for the past 40 years; and WHEREAS, In January 2009, ExxonMobll notified the City of its intent to not renew its agreement for an additional term; and WHEREAS, In accordance with the original lease, the Airport has the option to purchase ExxonMobil`s assets at the Airport; and WHEREAS, these assets have value to the Airport; and WHEREAS, ExxonMobil owns a fleet of fuel trucks at the Airport which the Airport will need for future operations; NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR, That The City Manager is authorized to enter into an agreement with ExxonMobil in the amount of $ for the purchase of its interest in assets and fuel trucks at Bangor International Airport. IN CITY COUNCIL May 27, 2009 Passed as Amended Motion Made and Seconded for Passage Motion Made and Seconded to Amend by Substitution Passed Motion Made and Seconded for Passage as Amended Passed as Amended City Clerk # 09-185 (TrME.)Anthnriving rhP City Managgr to Enter into an Agreement with ExxonMobile jUk, kh" Purchase of irs Tnfinract in AGsets and Fuel Trucks at Bangor International Assigned to Councilor_ 09-185 Assigned to Councilor (As Amended) CITY OF BANGOR (TITLE.) ORDER, Authorizing the City Manager to Enter into an Agreement with ExxonMobil for the Purchase of its Interest in Assets and Fuel Trucks at Bangor International Airport. WHEREAS, The City of Bangor and ExxonMobil have enjoyed a good working relationship for the past 40 years; and WHEREAS, In January 2009, ExxonMobil notified the City of its intent to not renew its agreement for an additional term; and WHEREAS, In accordance with the original lease, the Airport has the option to purchase ExxonMobil`S assets at the Airport; and WHEREAS, these assets have value to the Airport; and WHEREAS, ExxonMobil owns a fleet of fuel trucks at the Airport which the Airport will need for future operations; NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR, That The City Manager is authorized to enter into an agreement in the amount of $1,100,000n with ExxonMobil for the purchase of its interest in assets and fuel trucks at Bangor International Airport.