2007 R - 116 - AUTHORIZING THE HONORABLE CITY MAYOR TO REPRESENT THE CITY OF OLONGAPO AND ENTER INTO A CONTRACT OF LOAN WITH THE DBP

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON AUGUST 22, 2007 AT THE CITY HALL.

PRESENT:

Hon. Cynthia G. Cajudo - - - - - - - - - - - - - - - - - City Vice-Mayor & Presiding Officer Hon. Gina Gulanes-Perez - - - - - - - - - - - - - - - - City Councilor
Hon. John Carlos G. Delos Reyes- - - - - - - - - - - “ “
Hon. Rodel S. Cerezo - - - - - - - - - - - - - - - - - - - “ “
Hon. Marey Beth D. Marzan- - - - - - - - - - - - - - - “ “
Hon. Sarah Lugerna Lipumano-Garcia - - - - - - - - “ “
Hon. Edwin J. Piano- - - - - - - - - - - - - - - - - - - - - “ “
Hon. Angelito W. Baloy - - - - - - - - - - - - - - - - - - “ “
Hon. Aquilino Y. Cortez, Jr.- - - - - - - - - - - - - - - - “ “
Hon. Anselmo A. Aquino- - - - - - - - - - - - - - - - - - “ “
Hon. Elena C. Dabu- - - - - - - - - - - - - - - - - - - - - - “ “
Hon. Carlito A. Baloy- - - - - - - - - - - - - - President, Liga ng mga Barangay
Hon. Robine Rose C. Buenafe- - - - - - - - - - - - - - - SK Federation President
ABSENT:

None.


RESOLUTION NO. 116
(Series of 2007)

A RESOLUTION AUTHORIZING THE HONORABLE CITY MAYOR JAMES GORDON, JR. TO REPRESENT THE CITY OF OLONGAPO AND ENTER INTO A CONTRACT OF LOAN WITH THE DEVELOPMENT BANK OF THE PHILIPPINES (DBP) IN THE PRINCIPAL AMOUNT OF PESOS ONE HUNDRED FORTY FOUR MILLION (PhP144,000,000.00) FOR THE PURPOSE/S STATED HEREIN AND TO SIGN THE LOAN AGREEMENT, DEED OF ASSIGNMENT, THE PROMISSORY NOTE AND OTHER DOCUMENTS RELATED THERETO

WHEREAS, there is a need to immediately implement a solid waste containerization, collection and transportation system to fully comply with R.A. 9003 and to undertake a complete Feasibility Study and Detailed Planning of the City’s enhance Sanitary Landfill system to promote a cleaner and more sanitized environment in the City;

WHEREAS, there is likewise a need, after the completion of the aforesaid study and planning, to undertake the redevelopment of the City’s Sanitary Landfill system also in line with the requirements of RA 9003 and for the purpose of perfecting an efficient Solid Waste Management System within the City;

WHEREAS, such projects shall require at the outset funding at the level of one hundred forty four million pesos (PhP144,000,000.00) which can be sourced through a loan;

WHEREAS, the Development Bank of the Philippines, the major creditor of the City, has indicated that it is willing to consider providing major funding at the level of One Hundred Forty Four Million Pesos (Php144,000,000.00) for the aforementioned projects

NOW, THEREFORE, on motion of Councilor Marey Beth D. Marzan, with the majority decision of the Members of the Sangguniang Panlungsod present,

RESOLVED, AS IT IS HEREBY RESOLVED, by the Sangguniang Panlungsod in the session assembled to authorize, as it is hereby authorizes the Honorable Mayor James Gordon, Jr. to enter into, negotiate and obtain a loan up to the principal amount of One hundred Forty Four Million Pesos (PhP144,000,000.00) from the DBP in behalf of the City for the following purpose/s

1. To finance the acquisition and installation of a waste containerization and collection system including an information and education campaign on community solid waste management amounting to One Hundred Thirty Six Million Pesos (PhP136,000,000.00); and

2. To finance the Feasibility Study and Detailed Planning for the redevelopment of the City’s Sanitary Landfill Facilities amounting to Eight Million Pesos (PhP8,000,000.00)

RESOLVED FURTHER, AS IT IS HEREBY FURTHER RESOLVED, that the Honorable City Mayor James Gordon, Jr., be authorized, as he is hereby authorized, to negotiate and conclude such loan; and, to sign, execute and deliver loan and collateral agreements, promissory notes and such other pertinent papers, instruments, and documents and to do all acts and things necessary, proper and convenient under the premises, for and in behalf of the City.


RESOLVED FINALLY, AS IT IS HEREBY FINALLY RESOLVED, to authorize, as it hereby authorizes the City Mayor James Gordon, Jr. to do, undertake execute and perform the following acts:

1. The assignment of the City’s applicable portion of the Internal Revenue Allotment (IRA), Realty Taxes and other revenues in favor of DBP;

2. The issuance of an authorization/instruction letter to the Department of Budget and Management (the “DBM”) to remit all or a portion of the City’s share of the IRA directly to DBP for deposit to the City’s deposit account thereat;

3. The undertaking not to cause the transfer of the remittance of IRA or any applicable portion thereof by the DBM referred to Section 1, page 2 hereof, from DBP to any other bank without the DBP’s prior consent until the loan and other charges shall have been fully paid;

4. The designation of DBP as its principal depository bank and the opening and maintenance of a deposit account thereof shall be deposited during the term of the loan and payment of its loan obligations shall be debited;

5. The assignment of the appropriate portion of the City’s other revenues with undertaking to remit the same to DBP in case the IRA, realty tax collections, project revenues are insufficient to service the loan amortization.

6. The undertaking of the City to include in its annual budget the required amortizations to service its loan obligations with DBP;

7. The undertaking of the City that it will not incur additional obligation/ indebtedness without the prior written notice sent to DBP.

8. The undertaking of the City to mortgage equipment to be acquired;

9. To mortgage, as security for the loan, properties acceptable to DBP;

RESOLVED, that this Resolution once approved and executed shall be valid and effective until the Loan with DBP has been fully settled and paid.

RESOLVED FINALLY, that copies of this Resolution be furnished the Offices of the City Mayor, the Treasurer, the Auditor, the concerned Development Council and the DBP.

APPROVED, August 22, 2007.


CYNTHIA G. CAJUDO
City Vice-Mayor & Presiding Officer


GINA GULANES - PEREZ JOHN CARLOS G. DELOS REYES
City Councilor City Councilor


RODEL S. CEREZO MAREY BETH D. MARZAN
City Councilor City Councilor


SARAH LUGERNA LIPUMANO-GARCIA EDWIN J. PIANO
City Councilor City Councilor
(Abstained)

ANGELITO W. BALOY AQUILINO Y. CORTEZ, JR
City Councilor City Councilor


ANSELMO A. AQUINO ELENA C. DABU
City Councilor City Councilor


CARLITO A. BALOY ROBINE ROSE C. BUENAFE
President, Liga ng mga Barangay SK Federation President

ATTEST:

ELFLIDA S. SALMON
Council Secretary

APPROVED BY HIS HONOR, THE CITY MAYOR ON______________________.


JAMES GORDON, JR.
City Mayor
ATTEST:

DELFIN A. JUICO, JR.
Secretary to the City Mayor