2008 R - 37 - AUTHORIZING MAYOR JAMES GORDON, JR. AND CITY TREASURER MR. ANDAWI TO REPRESENT THE CITY OF OLONGAPO AND ENTER INTO A CONTRACT OF LOAN

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON MARCH 12, 2008 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. Sarah Lugerna Lipumano-Garcia- - - - - - - - - “ “
Hon. Edwin J. Piano - - - - - - - - - - - - - - - - - - - - - “ “
Hon. Angelito W. Baloy - - - - - - - - - - - - - - - - - - “ “
Hon. Aquilino Y. Cortez, Jr. - - - - - - - - - - - - - - - - “ “
Hon. Elena C. Dabu - - - - - - - - - - - - - - - - - - - - - “ “
Hon. Cheenee F. Hoya - - - - - - - - - - - - - - - - - - - - SK Federation President

ABSENT:

Hon. Anselmo A. Aquino - - - - - - - - - - - - - - - - - - City Councilor
Hon. Carlito A. Baloy- - - - - - - - - - - - - - - - - - - - - President, Liga ng mga Barangay


RESOLUTION NO. 37
(Series of 2008)

A RESOLUTION AUTHORIZING THE HONORABLE CITY MAYOR JAMES GORDON, JR. AND CITY TREASURER MARCELINO ANDAWI 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 ONE HUNDRED FORTY-THREE MILLION EIGHT HUNDRED THOUSAND PESOS (PHP143,800,000.00) 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 enhanced 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 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-three Million Eight Hundred Thousand Pesos (PhP143,800,000.00) 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 One Hundred Forty-three Million Eight Hundred Thousand Pesos (PhP143,800,000.00) for the aforementioned projects;

WHEREAS, it is hereby requested that the One Hundred Forty-three Million Eight Hundred Thousand Pesos (PhP143,800,000.00) shall be treated as a Supervised Loan;

NOW, THEREFORE, on motion of Councilor Gina Gulanes-Perez, 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. and City Treasurer Marcelino Andawi to enter into, negotiate and obtain a loan up to the principal amount of One Hundred Forty-three Million Eight Hundred Thousand Pesos (PhP143,800,000.00) from the DBP in behalf of the City for the following purpose/s:

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 PhP136,600,000.00;

To finance the Feasibility Study and Detailed Planning for the redevelopment of the City’s Sanitary Landfill Facilities amounting to PhP7,200,000.00;

That the Honorable Mayor James Gordon, Jr. and City Treasurer Marcelino Andawi be authorized to 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 Honorable Mayor James Gordon, Jr. and City Treasurer Marcelino Andawi to do, undertake execute and perform the following acts:

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

The obligation of the LGU is binding and shall not be subject to recall by its concerned Sanggunian while the Loan with DBP is still outstanding, regardless of the change of its composition;

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;

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;

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;

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

To execute unregistered chattel mortgage on the new vehicles and hydraulic lifting device;

To change schedule of previous loans as follows:

a) Retail Livelihood Project Loan - principal payment - from 23 equal quarterly principal installments of P2,625,000.00 to 23 variable principal installments

b) Civic Center- from semi-annual installments of P1,467,428.57 to quarterly installments of P733,714.29

c) Civic Center AVR Equipment – from semi-annual installments of P700,000.00 to quarterly installments of P350,000.00

d) Power Distribution System – from semi-annual installments of P481,481.48 to quarterly installments of P240,740.74.

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.


APPROVED, March 12, 2008.



CYNTHIA G. CAJUDO
City Vice-Mayor & Presiding Officer


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


RODEL S. CEREZO SARAH LUGERNA LIPUMANO-GARCIA
City Councilor City Councilor
(Opposed)


EDWIN J. PIANO ANGELITO W. BALOY
City Councilor City Councilor


AQUILINO Y. CORTEZ, JR ANSELMO A. AQUINO
City Councilor City Councilor
(Absent)


ELENA C. DABU CARLITO A. BALOY
City Councilor President, Liga ng mga Barangay
(Absent)


CHEENEE F. HOYA
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