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
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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.