HomeMy WebLinkAbout2012-07-09 12-235 ORDERCOUNCIL ACTION
Item No. 12-235
Date: July 9, 2012
Item/Subject: ORDER, Authorizing the execution of an amendment to the fuel supply agreement
between Irving Oil, Inc and the City of Bangor.
Responsible Department: Airport
Commentary:
Since September 2009, Irving Oil Terminals Inc has been the primary supplier of Jet fuel to the Bangor
International Airport customers, including direct contract customers as well as the FBO fuel supplier, World Fuel
Services. The Airport operates the FBO and in 2009 made the decision to keep World Fuel Services as the FBO
supplier in order to continue operating with the Exxon fuel brand, as they were the sole distributor for Exxon
aviation fuel. This agreement is due to expire in July of this year. Since 2009 it has become evident that there is
no real advantage to pay a premium for the Exxon brand, as the Irving name in aviation represents quality fuel and
the service that the customers experience at the Bangor.
Irving Oil has proposed amending the fuel supply agreement to include the direct supply of Jet fuel to the Airport
FBO. Since Irving currently supplies the Jet fuel that the Airport purchases from World Fuel Services, there would
be no change in the delivery and quality of the fuel. The Airport would experience a cost savings by removing a
middle supplier that would be used to support FBO operations, including marketing the FBO, attending trade shows
and events, as well as supporting safety and training initiatives. This amendment has been reviewed and approved
by City Legal.
Anthony P. Caruso
Interim Department Head
Manager's Comments:
This has been reviewed by the Airport Committee and is recommended for approval.
City Manager
Associated Information:
Budget Approval:
Finance Director
Legal Approval:
City Solicitor
Introduced for
_X Passage
First Reading
Referral
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12.235
JULY 912012
Assigned to Councilor Blanchette
BA
CITY OF BANGOR
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(TITLE.) ORDER, Authorizing the execution of an amendment to the fuel supply agreement
between Irving Oil, Inc and the City of Bangor.
WHEREAS, The City of Bangor owns and operates the Bangor International Airport;
and
WHEREAS, Bangor International Airport and Irving Oil, Inc. are interested in
amending the current fuel supply agreement; and
WHEREAS, The original agreement outlines the terms and conditions set forth
whereby Irving currently supplies the fuel that the Airport purchases from
World Fuel Services and this agreement is due to expire in July of this
year; and
WHEREAS, This amendment outlines the terms and conditions set forth for Irving Oil,
Inc. to supply fuel direct to the Airport's Fixed Base Operation (FBO); and
WHEREAS, it would be advantageious to both parties to amend this agreement.
NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF
BANGOR, That
The City Manager is authorized to execute an amendment to the fuel supply agreement
between Irving Oil, Inc and the City of Bangor.
IN CITY COUNCIL
JULY 9, 2012
PASSED
(TITLE,)
Assigned to Councilor