2007 R - 129 - AUTHORIZING THE HONORABLE CITY MAYOR JAMES GORDON, JR. 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 SEPTEMBER 19, 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

ABSENT:

Hon. Robine Rose C. Buenafe- - - - - - - - - - - - - - - SK Federation President
(Sick Leave)


RESOLUTION NO. 129
(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 SEVENTY MILLION PESOS (PHP70,000,000.00) FOR THE PURPOSE/S STATED HEREIN AND TO SIGN THE LOAN AGREEMENT, DEED OF ASSIGNMENT, THE PROMISSORY NOTE AND OTHER DOCUMENTS RELATED THERETO

WHEREAS, the City Council adopted Resolution No. 47, Series of 2007 approving the acquisition of Dredging Machine for the use of regular desilting and maintenance of all rives in the City ;

WHEREAS, the acquisition of such machinery forms part of the flood control program of the City and shall be partially appropriated in the yearly mitigating project of the Disaster Coordinating Council and that there is a fervent need in order to prevent or minimize floods and disasters in the City;

WHEREAS, the City of Olongapo is situated below sea level and the heavily silted rivers and waterways had caused the increase of the incidence of floods in the City ;

WHEREAS, there is a need to immediately acquire a dredging machine to carry out the integrated program of the City in systematically dredging the heavily silted rivers and water ways of Olongapo City;

WHEREAS, such projects shall require at the outset funding at the level of seventy million pesos (PhP70,000,000.00) 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 in the amount of seventy million pesos (PhP70,000,000.00) for the aforementioned projects;

WHEREAS, it is hereby requested that the PhP70,000.00 shall be treated as a Supervised Loan of the DBP;

NOW, THEREFORE, on joint motion of Councilors Marey Beth D. Marzan, Anselmo A. Aquino and Rodel S. Cerezo, with the unanimous accord 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 Seventy Million Pesos (PhP70,000,000.00) from the DBP in behalf of the City for the following purpose:

1. To finance the acquisition of a dredging machine amounting to seventy million pesos (PhP70,000,000.00);
and

That the Honorable City Mayor James Gordon, Jr., be 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 FURTHER, AS IT IS HEREBY FURTHER 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, 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 FINALLY, AS IT IS HEREBY FINALLY RESOLVED, that this Resolution once approved and executed shall be valid and effective until the Loan with DBP has been fully settled and paid.

Let copies of this Resolution be furnished the Offices of the City Mayor, the Treasurer, the Auditor, and the DBP and that the following documents: 1. City Resolution approving the acquisition of the dredging machine, 2. Specifications submitted by the Office of the City Engineering and 3. Letter of the City Mayor requesting for such authority shall be made as integral parts of this resolution.

APPROVED UNANIMOUSLY, September 19, 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


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
(Sick Leave)




Con’t. of Resolution No. 129, Series of 2007.

- 4 -


ATTEST:


JOCELYN P. NIÑONUEVO
Temporary 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