2009 R - 79 - SUPERSEDING RES. NO. 54, SERIES 2008 AND SUCH OTHER PREVIOUS RESOLUTIONS INCONSISTENT THERETO, PRIMARILY AUTHORIZING THE CITY MAYOR

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON JUNE 24, 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. Sarah Lugerna Lipumano-Garcia- “ “
Hon. Edwin J. Piano - - “ “
Hon. Angelito W. Baloy - - “ “
Hon. Anselmo A. Aquino- - “ “
Hon. Elena C. Dabu- - - - - - “ “
Hon. Cheenee F. Hoya- - - SK Federation President

ABSENT:

Hon. Aquilino Y. Cortez, Jr.- - - - City Councilor
(On Official Travel Abroad)
Hon. Jonathan G. Manalo - - City Councilor
(On Official Business)
Hon. Carlito A. Baloy- - President, Liga ng mga Barangay
(On Official Business)

RESOLUTION NO. 79
(Series of 2009)

A RESOLUTION SUPERSEDING RESOLUTION NO. 54, SERIES 2008 AND SUCH OTHER PREVIOUS RESOLUTIONS INCONSISTENT THERETO, PRIMARILY AUTHORIZING THE HONORABLE CITY MAYOR JAMES GORDON, JR. TO NEGOTIATE, ENTER INTO AND SIGN A LONG TERM LEASE AGREEMENT WITH THE WINNING BIDDER, AND TO PREPARE THE TERMS OF REFERENCE REGARDING SUCH BIDDING, CONSISTENT WITH THIS RESOLUTION, REGARDING THE OLONGAPO CITY MALL

WHEREAS, to streamline the requisites for the bidding of the long term lease of Olongapo City Mall (OCM), the following conditions in the Terms of Reference ought to be satisfied:

1. The Lease Period shall not exceed 48 years.

2. The Annual Lease Rate shall be 5-10% of the Gross Rent the collected from the mall tenants during the calendar year. Gross Rent is defined as regular rent derived from standard stall spaces on the ground and second floor. Excluded from the Gross Rent computations are Common Usage Service Area (CUSA) and aircon charges, parking fees, exhibition income, security deposits, late payment penalties, and any non-regular income of the mall.

3. The lease shall cover the mall structure, all improvements and the loan on which the building stands on. It also shall include the parking area, the creek side improvements and the Calvary property as part of the lease.

4. The winning bidder must, for the first ten (10) years of the lease, pay on behalf, and retire the debt of OCM with the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines, in lieu of paying rentals to the City Government.

5. Upon start of the Lease Period, the lessee shall take over full management of the OCM. Lessee shall have full autonomy to operate and manage the mall.

6. The winning bid must honor all existing Lease Contracts of mall tenants, provided their rent payments are not arrears.

7. As an incentive, the City will grant a 5-year tax holiday to OCM from payment of Business Taxes and all Fees and Charges due to the City Government without prejudice to the payment of other taxes and charges mandated by law.

8. The payment of a Performance Bond preferably in each to be recommended by the Finance Team, preferably in cash.

NOW, THEREFORE, on motion of Councilor Gina G. Perez co-sponsored by Councilors John Carlos G. delos Reyes, Rodel S. Cerezo, Edwin J. Piano, Angelito W. Baloy, Anselmo A. Aquino, Elena C. Dabu and Cheenee F. Hoya, with the majority decision of the
Members of the Sangguniang Panlungsod present;

RESOLVED, AS IT IS HEREBY RESOLVED, by the Sangguniang Panlungsod in session assembled to supersede, as it hereby supersedes Resolution No. 54, Series 2008 And Such Other Previous Resolutions Inconsistent Thereto, Primarily Authorizing The Honorable City Mayor James Gordon, Jr. To Negotiate, Enter Into And Sign A Long Term Lease Agreement With The Winning Bidder, And To Prepare The Terms Of Reference Regarding Such Bidding, Consistent With This Resolution, Regarding The Olongapo City Mall

Let a copy of this Resolution be furnished to the Olongapo City Mall Administrator for his information and guidance.

APPROVED, June 24, 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
(Opposed)

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

AQUILINO Y. CORTEZ, JR ANSELMO A. AQUINO
City Councilor City Councilor
(On Official Travel Abroad)

ELENA C. DABU JONATHAN G. MANALO
City Councilor City Councilor
(On Official Business)

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


ATTEST:

JOCELYN PASCUAL-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