2009 R - 41 - AUTHORIZING THE CITY MAYOR OF OLONGAPO TO ACCEPT THE PROPOSAL OF SUBIC WATER AND SEWERAGE COMPANY INC. FOR THE MUTUAL SETTLEMENT

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON APRIL 1, 2009 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. Edwin J. Piano - - - - - - “ “
Hon. Aquilino Y. Cortez, Jr.- - - - - “ “
Hon. Anselmo A. Aquino- - - - “ “
Hon. Elena C. Dabu- - - - - - - “ “
Hon. Jonathan G. Manalo- - - - - “ “

ABSENT:

Hon. Sarah Lugerna Lipumano-Garcia- - - - City Councilor
Hon. Angelito W. Baloy - - - - - “ “
Hon. Carlito A. Baloy - - - - President, Liga ng mga Barangay
Hon. Cheenee F. Hoya- - - - - - SK Federation President
(On Official Business)


RESOLUTION NO. 41
(Series of 2009)

A RESOLUTION AUTHORIZING THE CITY MAYOR OF OLONGAPO TO ACCEPT THE PROPOSAL OF SUBIC WATER AND SEWERAGE COMPANY INCORPORATED (SUBICWATER) FOR THE MUTUAL SETTLEMENT OF THE PAST DUE ACCOUNTS ON WATER BILLS OF THE CITY OF OLONGAPO AND ELECTRICAL BILLS OF SUBIC WATER


WHEREAS, from March 31, 1998 to February 28, 2009 the City of Olongapo (City) has an outstanding water bill arrears in the amount of P402 million inclusive of interest, while Subic Water & Sewerage Co., Inc. (Subicwater) has a balance of unpaid electrical power bills amounting to P224 million inclusive of interest covering the period from 1997 to 2002;

WHEREAS, the outstanding penalties or interest imposed by Subicwater against the City for unpaid water bills amounts to P294 million while the outstanding penalties or interest imposed by the City against Subicwater on unpaid electrical power bills is P184 million;

WHEREAS, the principal amount of the unpaid water bills payable by the City to Subicwater is P108 million, while the principal amount of the unpaid electrical power bills payable by Subicwater to the City of Olongapo is P40 million;

WHEREAS, the outstanding penalties on unpaid electrical power bills of Subicwater shall be condoned by the City of Olongapo (City) provided that Subicwater condones its outstanding penalties imposed on the City’s unpaid water bills;

WHEREAS, the City and Subicwater shall settle their past due accounts of unpaid water and electrical power bills by offsetting each other’s obligations on the basis of the principal amounts, that is, P108 million on water bills in favor of Subicwater and P40 million in favor of the City on electrical power bills, leaving an amount of P68 million payable by the City;

WHEREAS, Subicwater has a Lease Contract with the City with regards to the water supply and distribution facilities in which the City shall collect the amount of P6 million annually from Subicwater commencing March 31, 1997;

WHEREAS, the City has already collected from Subicwater the amount of P34 million as payment for the lease of the facilities covering the period from March 31, 1997 to March 31, 2003;

WHEREAS, Subicwater has past due accounts on the payment of their Lease Contract with the City in the amount of P38 Million covering the period from March 31, 2003 to March 31, 2009;

WHEREAS, to partially settle the remaining P68 Million water bills of the City after the offsetting arrangement, Subicwater’s unpaid lease to the City amounting to P38 million shall be appropriated and/or allocated to reduce the water bills payable by the City to P30 million;

WHEREAS, to fully settle the amount of P30 million water bills payable by the City, Subicwater shall charge the said amount as advanced or accelerated lease payments which, in effect, Subicwater shall be advancing lease payments of P6 million a year for the next five (5) years commencing fiscal year ending March 31, 2010;

WHEREAS, the stipulation stated in the fifth (5th) paragraph of the Subicwater Board Secretary’s Certificate, is rejected by the Sangguniang Panglungsod as there is a current study made by the City on a payment scheme to pay the current water bills;

NOW, THEREFORE, on motion of Councilor Jonathan G. Manalo with the unanimous accord of the Members of the Sangguniang Panlungsod present,

RESOLVED, AS IT HEREBY RESOLVED, by the Sangguniang Panlungsod in session assembled to authorize, as it hereby authorizes the City Mayor Of Olongapo to accept the proposal of Subic Water And Sewerage Company Incorporated (Subicwater) for the mutual settlement of the past due accounts on water bills of the City Of Olongapo and electrical bills of Subic Water.

RESOLVED FURTHER, AS IT HEREBY FURTHER RESOLVED, that a copy of the Secretary’s Certificate executed by Subic Water & Sewerage Co., Inc. shall be made as an integral part of this resolution;

APPROVED UNANIMOUSLY, April 1, 2009.


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
(Absent)

EDWIN J. PIANO ANGELITO W. BALOY
City Councilor City Councilor (Absent)

AQUILINO Y. CORTEZ, JR ANSELMO A. AQUINO
City Councilor City Councilor


ELENA C. DABU JONATHAN G. MANALO
City Councilor City Councilor


CARLITO A. BALOY CHEENEE F. HOYA
President, Liga ng mga Barangay SK Federation President
(Absent) (On Official Business)

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