Minutes of Sangguniang Panlungsod Session

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

(Sick Leave)

Call to Order

The City Vice-Mayor and Presiding Officer Cynthia G. Cajudo called the session to order at 4:46 in the afternoon.

Councilor Rodel S. Cerezo moved for the appointment of Ms. Jocelyn P. Niñonuevo as the Temporary Council Secretary in lieu of Ms. Elflida S. Salmon, Council Secretary who is on Official Business.

Roll Call

With nine (9) Members and the Presiding Officer present, a quorum was declared.

Reading and Adoption of Minutes

On motion of Councilor Gina Perez, the minutes of the regular session dated June 10, 2009 was unanimously adopted by the body as corrected.

Councilor Gie Baloy commented that his committee report on page 6, 4th paragraph it is “Carlito A. Baloy” not Angelito W. Baloy.

Reading and Approval of the Day’s Agenda

Before the approval of the day’s agenda, Councilor Rodel S. Cerezo read the items on 1st and 2nd reading, to wit:

First Reading:

1. Draft Resolution No. 2009 R-068 – A Resolution Extending Earnest Invitation To The Sangguniang Kabataan National Federation To Hold Its National Congress In Olongapo City/Subic In October 2009. Sponsored By Councilor Gina G. Perez. (Referred to the Committee on Youth and Committee as a Whole)

2. Draft Resolution No. 2009 R-069 – A Resolution Authorizing The Honorable City Mayor James Gordon, Jr. To Prepare The Terms Of Reference To Bid Out For Long Term Lease Of The Olongapo City Mall. Sponsored By Councilor Gina G. Perez. Referred to the Committee on Business and Committee as a Whole)

3. Draft Resolution No. 2009 R-070 – A Resolution Supporting The Passage Of Senate Bill 2317 Otherwise Known As “An Act Prohibiting Child Pornography, Imposing Penalties For The Commission Thereof And For Other Purposes”. Sponsored By Councilor Gina G. Perez. (Referred to the Committee on Social Welfare)

4. Draft Resolution No. 2009 R-071 – A Resolution Urging All Barangay Of Olongapo City To Convene The Barangay Human Rights Action Center (BHRAC) And The Barangay Human Rights Action Center (BHRAO). Sponsored By Councilor John Carlos G. Delos Reyes. (Referred to the Committee on Human Rights)

Second Reading:

1. Draft Ordinance No. 2009 O-25 – An Ordinance Sanctioning The Modernization And Professionalization Of The Public Utilities Department (P.U.D.) Through Privatization By Way Of Private Sector Participation Through Divestment/Sale Or Build Operate Transfer (B.O.T.) Arrangements. Sponsored By The Majority Party

2. Draft Resolution No. 2009 R-063 – A Resolution Calling All Barangays In The City To Create An Anti-Dengue Task Force. Sponsored By Councilor Gina G. Perez

3. Draft Resolution No. 2009 R-064 – A Resolution Approving The Application Of Digitel Telecommunications, Inc. (Sun Cellular) For The Installation And Operation Of Cellsite/GSM Antenna At Barangay New Asinan, Olongapo City. Sponsored By Councilor Edwin J. Piano

4. Draft Resolution No. 2009 R-065 – A Resolution Approving The Application Of Digitel Telecommunications, Inc. (Sun Cellular) For The Installation And Operation Of Cellsite/GSM Antenna At Barangay East Tapinac, Olongapo City. Sponsored By Councilor Edwin J. Piano

5. Draft Ordinance No. 2009 O-26 – An Ordinance Approving And Appropriating The Amount Of Thirty Four Million Seven Hundred Twenty Six Thousand Four Hundred Forty One Pesos And Forty Three Centavos (PhP34,726,441.43) As Supplemental Budget For Calendar Year 2009. Sponsored By Councilor Jonathan G. Manalo

6. Draft Resolution No. 2009 R-066 – A Resolution Authorizing The Honorable City Mayor James Gordon, Jr. To Enter Into A Contract Of Affiliation (COA) By And Between The City Government Of Olongapo And George Dewey Medical College, Inc. (GDMCI) Represented By Its Vice President For Academic Affairs, Dr. Ruby J. Cirineo For The Affiliation And Training Of Its Nursing Students At The James L. Gordon Memorial Hospital. Sponsored By Councilor Angelito W. Baloy

7. Draft Resolution No. 2009 R-067 – A Resolution Rescinding The Memorandum Of Agreement (MOA) Between TCR Technology Advancement System, The City Of Olongapo And The Olongapo City Police District Office. Sponsored By The Majority Party

Councilor Perez moved to change some sponsorship on items 1, 2 and 3 under the 1st reading, items 1 and 3 under unanimous sponsorship and item 2 will be on majority sponsorship.

Councilor Cerezo moved for the removal of item 5 under 2nd reading, since Draft Ordinance No. 2009 O-26 was already approved last session.

Councilor delos Reyes moved to change some words in item 4 under 1st reading from “Draft Resolution No. 2009 R-071 – A Resolution Urging All Barangay Of Olongapo City To Convene The Barangay Human Rights Action Center (BHRAC) And The Barangay Human Rights Action Center (BHRAO),” to “A Resolution Urging All Barangays Of Olongapo City To Create The Barangay Human Rights Action Center (BHRAC) And To Convene The Barangay Human Rights Action Officers (BHRAO) As Mandated By The Department Of The Interior And Local Government (DILG) Memorandum.”

Councilor Piano moved to add the date on item 7 under 2nd reading to be read “Draft Resolution No. 2009 R-067 – A Resolution Rescinding The Memorandum Of Agreement (MOA) Between TCR Technology Advancement System, The City Of Olongapo And The Olongapo City Police District Office dated January 12, 2006.”

Councilor Gie Baloy moved for the inclusion for the sponsorship, Councilor Jonathan G. Manalo on item 6 under 2nd reading.

Councilor Hoya moved to include in the 1st reading “A Resolution Declaring Support Of The City Government To The Larolympics In Olongapo City, An Initiative Of Anak TV In Coordination With The Local Sangguniang Kabataan (SK) And City Social Welfare And Development Office (CSWDO).” (Referred to the Committee on Youth)

With no other observations/comments, the Day’s Agenda was unanimously approved, as amended.

Communications and Referrals of Business

Communications Read:

1. Letter from Atty. Noel Yabut Atienza, Counsel of Teresita Z. Abdon from New Ilalim, Olongapo City, addressed to the Hospital Administrator stating that it appears from his client that the hospital has denied the release of the original copy of the Certificate of Death of her son Jay-Ar Abdon on the account that her client has filed a complaint against the physician, who examined the former. Relative thereto, he was given a period of ten (10) days from receipt of his letter otherwise he shall be constrained to file the appropriate complaint, which proved to be expensive and embarrassing. (Referred to the Committee on Health)

2. Memorandum from Marey Beth D. Marzan, OIC – City Budget Office for All Heads Of Departments And All Others Concerned regarding the Specific Guidelines In the Preparation Of CY 2010 Budget Proposals And Other Budgetary Items. (Referred to the Committees on Appropriations and on Ways and Means

3. City Budget Memorandum No. 2009 – 1 (Budget Call) addressed to All Department/Office Heads, Section Chiefs And All Others Concerned regarding the Policy Guidelines And Procedures In The Preparation And Submission Of Calendar Year (CY) 2010 Budget Proposals. (Referred to the Committees on Appropriations and on Ways and Means)

4. First Endorsement from the City Mayor, addressed to the Hon. City Vice Mayor Cynthia G. Cajudo and Members of the Sangguniang Panlungsod the copy of the proposed Memorandum of Agreement entered into by and between the Department of Trade and Industry represented by DTI Secretary Peter B. Favila, and the City Government of Olongapo represented by the City Mayor regarding the Development and Implementation of the Philippine Business Registry. (Referred to the Committee on Business)

5. Letter from Hon. Cheenee F. Hoya, SK City Fed. President addressed to Hon. Mac Arnold Concepcion, SK Chairman, Brgy. New Cabalan, Olongapo City regarding her response to his letter dated June 12, 2009 re: Clarification for Admin. Case No. SKCF 02-2009 decision for Failure To Call/Hold Regular Meetings In The Barangay And Gross Negligence And Dereliction Of Duty as SK Chairman. She stands firm with the SK City Federation’s final decision and that they had complied with the provisions in rendering decision based on the 2001 SK Constitution and By-laws. (For information)

6. Invitation from the Sofia Center for Continuing Education Re: 2009 Continuing Enhancement Program For Local Chief Executive And Local Legislative Bodies, addressed to the Honorable City Vice Mayor offering a three (3) days Seminar/Forum on Comprehensive Updates on Local Administrative/Legislative Governance For 2009. (For information)

7. Letter from Rev. Theodore Fulfer, Founder-Administrator of the Subic Bay Children Home, addressed to the Hon. City Mayor James Gordon, Jr. thru the Hon. Vice Mayor Cynthia G. Cajudo regarding their electric consumption. (Referred to the Committees on Utilities and on Social Welfare)

8. Letter from Engr. Luisito M. Lopez, General Manager, Public Utilities Department, addressed to the Hon. City Mayor James Gordon, Jr. The PUD Manager requests that an SP resolution be enacted authorizing Mr. Ramon Dasig Balagtas, Administrative Officer V, Public Utilities Department to represent the City Government of Olongapo (PUD) in all its court hearings in connection with the prosecution of cases of suspects caught and apprehended by the Public Utilities Department involved in blatant violation of Republic Act 7832, otherwise known as the “Electricity Anti-Pilferage Act”. (Referred to the Committee on Utilities)

9. Memorandum from Mr. Ferdie M. Magrata, City Administrator, addressed to All Department Heads and Heads of Offices regarding the Submission And Approval Of Application For Vacation And Sick Leaves. (For information and Posting)

10. Letter from Ms. Thelma S. Timbol, State Auditor IV, Audit Team Leader, addressed to Hon. Rodrigo B. Del Rosario, Punong Barangay, West Tapinac, Olongapo City and Hon. Jesus Ricardo N. Federico, Punong Barangay, Brgy. Kalaklan, Olongapo City, attention: Municipal Accountant, Barangay Treasurer and Barangay Record Keeper stating that their barangay failed to submit their accounts, financial statements and other reports for the calendar year 2008 despite letter from her office and reminding them of their responsibility under COA Resolution No. 2008-011. (Referred to the Committee on Brgy. Affairs)

11. Letter from Hon. Cynthia G. Cajudo, City Vice-Mayor, addressed to the Hon. City Mayor James “Bong” Gordon, Jr. and all City Councilors informing them of her recent attendance to the 8th and final consultation meeting of the Committee on Ways and Means headed by Sen. Panfilo Lacson Jr. at the Senate regarding the Senate Bill entitled “An Act Instituting Reforms In Real Property Valuation And Assessment In The Philippines”. The Vice Mayor recommended an in-depth study on the matter before its revision or passage into law.

12. Letter from Mr. Kenjohn C. Cabanglan, Admin. Assistant V, addressed to the Hon. City Vice Mayor Cynthia G. Cajudo thru: Hon. Elena C. Dabu informing her that he will be resigning from his position as Admin. Assistant V under the Office of Councilor Dabu. (For information)

13. Barangay Resolutions from Brgy. West Bajac-Bajac, Olongapo City, entitled, “A Resolution Fully Supporting The Implementation And Recognition Of The Identification Card For Persons With Disabilities Pursuant To RA 9442 – An Act Amending RA 7277 Otherwise Known As The “Magna Carta For Persons With Disability As Amended And For Other Purposes” (Referred to the Committee on Social Welfare)

14. Resolution entitled, “A Resolution Supporting The Passage Of Senate Bill No. 2317 Otherwise Known As, “An Act Prohibiting Child Pornography, Imposing Penalties For The Commission Thereof And For Other Purposes”. (Referred to the Committee on Social Welfare)

15. Resolutions from Barangay Old Cabalan:

a. Resolution No. 025, “A Resolution Approving The Withdrawal Of Forty Five Thousand Four Hundred Eighty Pesos (PhP45,480.00) For The Purchase Of Uniforms And Equipment To Be Issued To Barangay Public Safety Officers (B.P.S.O.) and Personnel Of Barangay Old Cabalan” (Referred to the Committees on Appropriations, and on Peace and Order)

b. Resolution No. 026, A Resolution Approving The Withdrawal Of Fifteen Thousand Pesos Only (PhP15,000.00) For The Implementation And Promotion Of Barangay Bantay Kalikasan Project Including The De-Clogging Activity. (Referred to the Committees on Environment, on Public Works and Engineering and on Appropriations)

c. Resolution No. 027, A Resolution Supporting The Passage Of Senate Bill No. 2317 Otherwise Known As, “An Act Prohibiting Child Pornography, Imposing Penalties For The Commission Thereof And For Other Purposes. (Referred to the Committee on Social Welfare)

16. Memorandum from the City Mayor James Gordon, Jr., addressed to All City Government Department/Asst. Department Heads And All Others Concerned regarding the Revised Rates Of Representation & Transportation Allowances or RATA. This pertains to the Local Budget Circular No. 2009-91 of the Department of Budget and Management. (For information of everybody and referred to the Committees on Appropriations and on Personnel)

17. Supplemental Information To The Complaint of Sotero S. Dabu and Dolorosa M. Damaso, complainant versus Brgy. Captain Carlito A. Baloy, respondent on the Adm. Case No. 06 (06-11-09) For: Violation of Republic Act No. 7160 and other laws pertinent to public service. (Referred to the Committee on Complaints and Investigation)

18. Response/letter addressed to Atty. Noel Yabut Atienza, Counsel for Teresita Abdon, from Dr. Lucena Cacho, Hospital Administrator, regarding the hospital’s denial of the release of the original copy of the Certificate of Death of Jay-Ar Z. Abdon. Dr. Cacho said that not one of the family member came back to settle the hospital bill and to claim the original certificate of death. Further, the counsel’s claim of the hospital’s denial to issue the original certificate of death on account of the fact that his client filed a compliant against the physician, who examined Jay-Ar Abdon is untrue and malicious. (Referred to the Committee on Health)

19. Letter to the Hon. Cynthia G. Cajudo and the honorable members of the Sangguniang Panlungsod, regarding the mediation appeal of the Administration of AMA Computer College. This is a follow-up letter from the teachers who have issues from the AMA Computer College. (Referred to the Committees on Personnel Matters and on Labor)

20. Committee report from Hon. Elena C. Dabu submitted to the Office of the Vice Mayor. (For information)

21. Endorsement coming from the Hon. City Mayor James Gordon, Jr. forwarding the letter of Engr. Luisito Lopez regarding his request that a resolution be enacted endorsing Engr. Ramon Dasig Balagtas to represent the city government of Olongapo in all its courts hearings. (For information and referred to the Committee on Utilities)

22. Executive Order No. 28 amendment of Executive Order No. 07, Series of 1999 regarding committee on the search for the Cleanest and Greenest Barangay of Olongapo City. (For information)

23. Letter given by Ms. Leticia Calipay, addressed to Ms. Resureccion Cruz and Ms. Edna Canlas regarding their water problems. (Referred to the Committee on Utilities)

24. Committee report submitted by Hon. Angelito W. Baloy, Chairman, Committee on Business, Economic Enterprises, Health and Public Welfare.

Committee Reports

As Chair of the Committee on Social Services, Councilor Dabu manifested that she conducted a coordination meeting with all the seventeen barangay kagawads and chairs on Social Services held last 18th of June, 2009. Thirteen barangay kagawads attended the said meeting and their agenda were blood donations, parenting seminar, provision of wheel chairs, the one-stop shop, education for the disabled, medical mission, livelihood for the disabled, and the budget for every barangay.

The councilor added that with regard to the invitation given by Mr. Alex Hermoso, program director of PREDA Foundation, she attended a forum against child pornography at Max’s Restaurant. Topics that have been discussed were Internet pornography, salient provisions of the Anti-Child Pornography Bill, and PREDA – Akbay presentation (play on child exploitation). The speakers who graced the forum were Atty. Anjanette Saguisag, Miss Dolores Alparque, and Miss Amihan Abueva.

In relation, Madam Dabu cited in her report that one million children are brought into the sex trade worldwide every year according to the United Nations’ Children’s Fund (UNICEF). The International Labor Organization states that figure as closer to one million eight hundred thousand. This means it is growing annually. Children are victims of criminal activities, recruited and paid for in remote and impoverished villages. They are usually run away street children victims of sexual or physical abuse at home, and are picked up on the city streets by pimps and traffickers and are sold to sex bars and clubs. Poverty is the main cause for vulnerable, semi-illiterate children. The huge population of children is rapidly growing, consisting of about thirty-four million, while the total population of the Philippines is about eighty-seven million. Out of every hundred children, forty-two are impoverished – that is fourteen million hungry children uneducated and easily exploited.

In conjunction, she disclosed that in Senate Bill No. 2317 entitled “An Act Prohibiting Child Pornography, Imposing Penalties for the Commission Thereof, And Other Purposes” passed its third and final readings last November 24, 2008. All senators unanimously voted for its approval. Two days after, the Bill was forwarded to the Lower House requesting for concurrence. In the House of Representatives, the House Bill No. 684 entitled “An Act Defining the Crime of Child Pornography, Imposing Penalties Thereof, and for Other Purposes”, has passed its first reading only and forwarded to the Committees on Justice, Welfare of the Children, and Appropriation for review and amendment. Once the Lower House version has passed its second and third readings, a bi-cameral session will be held to come-up with a consolidated version of the Senate and the House of Representatives. During the discussion, the Councilor told Atty. Anjanette Saguisag that the city council will definitely pass a resolution supporting the passage of Senate Bill 2317.

Lastly, the Councilor mentioned that the local Council for the Protection of Children and Liga ng mga Barangay of the Municipality of Midsayap, Province of Cotabato, headed by their focal person, Miss Gladys Mae Paule, and Liga ng mga Barangay President, Joselito Tapilera, arrived at 6:15 P.M. last June 19, 2009 for their Lakbay-Aral here in our city. They chose our city to learn much on how we protect our children and women, and how Olongapo consistently won as one of the National Awardees for being the most child-friendly city in the Philippines. The visitors were welcomed by the tourism staff, CSWDO staff, and her self.

As Chair of the Committee on Business and Economic Enterprise, Councilor Gie Baloy communicated that the Small and Medium Enterprises and Development Council (SMEDC) held its monthly meeting at the local office of the Department of Trade and Industry last June, 2009 at 2 in the afternoon. As a recap, the members discussed their recently held dialogue with Councilor Jong Cortez while he was still here and Olongapo Traffic Management and Public Safety (OTMPS) Officer Col. Jose Aquino, Jr. regarding traffic congestions around the city and the upcoming plans and programs of the agencies involved to address the present traffic situation.

In correlation, the Councilor conveyed that the rest of the meeting focused on the forthcoming celebration of SMED week from July 6 to 10, 2009. With the theme “Negosyo…Kaya Mo!”, the council, with the help of the DTI, shall continue to encourage constituents to hone their entrepreneurial skills and contribute to the economy of the city. In line with this goal, a mini trade fair and Gawang Gapo products exhibit shall be showcased at the Olongapo City Mall to give exposure to those who are self-made entrepreneurs and entice the general public to support and patronize locally-produced products. He added that among the other activities are bartending, cooking, and massage therapy demonstrations to make people realize that they can also be entrepreneurs by skill if they lack funds.

Lastly, he revealed that on the 9th of July, 2009, at 2:00 P.M., the SMEDC and DTI shall hold another dialogue at the Olongapo City Convention Center, this time with the Public Utilities Department Head Engr, Louie Lopez and City Treasurer Marcelino Andawi to address various concerns of business establishments in the city. Councilor Gie invited everyone to support the “One Town, One Product” (OTOP) Fair at the Megatrade Hall, which shall run from July 08 to 12, 2009.

Calendar of Business

1. Draft Ordinance No. 2009 O-25 – “An Ordinance Sanctioning The Modernization And Professionalization Of The Public Utilities Department (P.U.D.) Through Privatization By Way Of Private Sector Participation Through Divestment/Sale Or Build Operate Transfer (B.O.T.) Arrangements,” was deferred by the body on motion of Councilor Rodel S. Cerezo.

2. Draft Resolution No. 2009 R-063 – “A Resolution Calling All Barangays In The City To Create An Anti-Dengue Task Force,” was deferred by the body pending the discussion with the City Health Office, on motion of Councilor Gina G. Perez.

3. Draft Resolution No. 2009 R-064 – “A Resolution Approving The Application Of Digitel Telecommunications, Inc. (Sun Cellular) For The Installation And Operation Of Cellsite/GSM Antenna At Barangay New Asinan, Olongapo City.” Sponsored By Councilor Edwin J. Piano

4. Draft Resolution No. 2009 R-065 – “A Resolution Approving The Application Of Digitel Telecommunications, Inc. (Sun Cellular) For The Installation And Operation Of Cellsite/GSM Antenna At Barangay East Tapinac, Olongapo City.” Sponsored By Councilor Edwin J. Piano

The Presiding Officer recognized the presence of Mr. Domingo C. Musa and Mr. Fredrick Gatmaitan, both from PMMAT, Inc. or Sun.

Councilor Lugie asked Mr. Musa if the buildings for the proposed cell sites in Asinan and East Tapinac are privately-owned. She also queried if they already have a contract, and how will they ensure public safety.

In response, Mr. Musa said that the building is privately owned-he declared that the contract for the buildings is ten years, with monthly rental. He added that in case of accidents, Digitel will indemnify all expenses.

Councilor Baloy asked Mr. Musa to clarify if they already have an existing contract with the private owner of the building.

Mr. Musa affirmed that they already have a draft contract, but it’s not yet finalized by Digitel in Manila after they constructed the site.

In return, the Councilor questioned Mr. Musa whether the owners agreed to the terms and agreement, even without the approval of the Council.

Mr. Musa responded that Digitel is currently working on the necessary permits for the requirements, and that the draft contract may be cancelled any time, whether approved or disapproved by the Sanggunian or any other agency in Olongapo.

Councilor Aquino asked Mr. Musa if they are the contractor, and if they are the proper authority for this matter.

Mr. Musa answered that they act as front-liners for the installation of the cell site and not the construction and commissioning companies because there are basically three contractors for one site. The first contractor is the one that secures all the necessary permits. The second contractor comes in to manage the construction of the cell site structure, and the third contractor is in charge of running and maintaining the site. He added that in a period of eight months to one year, the cell site will be turned over to Digitel. After the time frame lapses, Ericsson will turn-over the structure to Digitel Mobile Philippines through the general contractor.

The Councilor commented that in the past, some cells sites were immediately turned over to the owners right after construction, and the supposed monthly rentals were not paid. In relation, he expressed that he had contractor friends who build their own cell sites. Unfortunately, their businesses eventually collapsed and are now clueless as to who will be held responsible for their concerns. Councilor Aquino suggested that the best thing to do is to create a contract that is thorough and absolute, so that future administrations will know who will be held accountable, in case the same situation arises, by reason of the contract being in effect for the next ten years.

Mr. Musa retorted that since the City Council will be granting permission for the installation of the cell site to Digitel Mobile Philippines, the future administrations can hold the latter answerable in case future issues arise during the course of the contract.

The Presiding Officer queried if Mr. Musa has a copy of the contract with Digitel as far as the project is concerned. She also wanted to know the height of the structure they will be erecting.

Mr. Musa responded that he will be providing the copy of the said contract next session. He added that the height of the structure is only six meters, but the clearance from the roof to the ground is twenty-four meters.

The Presiding Officer asked the representative if they already secured a clearance from the Air Transportation Office (ATO).

Mr. Musa replied that they have already secured a copy of the clearance from the ATO Office in Manila, DOH, including CNC. He mentioned that they were advised to secure clearances only from CNC, DENR, and the Bureau of Environmental Management.

The Presiding Officer recommended that they submit all the clearances they have to the Council for further review. She also recapped regarding the cell phones which the Philippine Councilors League (PCL) procured. She submitted for a cut-off, and was assured to be given a reimbursement. Its been a year already but until now she has not received anything. She also brought-up that she was unsatisfied with the service of Sun Cellular before, since she always had hard time making calls through her cell phone.

Councilor Baloy asked Mr. Musa if PMMAT has already secured a business permit here in Olongapo City emphasizing that since they are sub-contractors, they have to secure a business permit before they can operate. He also confirmed from Mr. Musa if they have prevailing arrears amounting to PhP1,133,663.64.

Mr. Musa replied that they still haven’t secured a copy of the business permit, but if it’s required here, they will acquire one. He cited that in other cities and towns, they are not required to provide one. Mr. Musa also confirmed that the arrears amounting to PhP1,133,663.64 is factual.

The Councilor once again inquired to the representative from Sun Cellular on how they will settle their overdue debts. He also asked if there is willingness on the part of the company to settle their arrears.

Mr. Musa explained that when they submitted the statement from Digitel to the Assessor’s Office, the assessor appraised the value, after which, he told Mr. Agustin that he will pick-up the original copies of the properties for assessment. Mr. Agustin told him that the original copies have already been submitted to the treasurer, which was sent back to the Digitel main office through LBC. He added that they already submitted the photocopy of the document they got from the Assessor’s Office the other week, addressed to Mr. Arnold Estrella, Project Manager of Digitel. The main office is asking for the original copy, but if they won’t receive the same, they will provide the photocopy instead.

Councilor Aquino communicated that with regard to his previous statements, he asserted that as a sub-contractor of the cell site, Mr. Musa should be informing his colleagues in Manila that they have overdue debts to be settled in Olongapo before their application to construct two cell sites will be approved by the City.

Mr. Musa stated that he can help. He further explained that the arrears of Digitel is not part of his project, nor it is their own, and they have not been able to secure all the necessary permits for the site. But, being sub-contractors of Digitel, they will face and answer any problem. He voiced-out that they are trying their best to submit the document to the proper authority, and they will do their best to settle their debts and pay the City Government of Olongapo.

Councilor Gie Baloy suggested to the proponent that it is much better if they will settle first their overdue debts to the City before the Council Members approve their application for the two cell sites, if the proponent and contractor will agree to his suggestion.

In return, Mr. Musa replied that they will gladly cooperate with the City Council to help settle the debts of Digitel, even though the said project is not theirs alone. He requested the support of the Council in approving the proposed cell site.

The Presiding Officer remarked that since there are already existing cell sites in Olongapo City which have not paid their proper taxes, the City Government is adamant to permit the construction of additional cell sites. The City just wants assurance that if they will be allowed to construct their cell sites, the dues will be paid regularly. She also expressed that until Digitel has paid all its arrears, the City will not be in the position to decide whether to approve or disapprove their application. She asked Mr. Musa if it will be possible for Digitel to bring over their representatives to thoroughly discuss the matter. The Council Members agreed to her suggestion.

Mr. Musa announced that they will come back again the following week, together with Mr. Estrella or Atty. Villafuerte, for a session with the people of Digitel.

The Presiding Officer commented that the aforesaid discussions ended, for items 3 and 4 of the second reading.

5. Draft Resolution No. 2009 R-066 – “A Resolution Authorizing The Honorable City Mayor James Gordon, Jr. To Enter Into A Contract Of Affiliation (COA) By And Between The City Government Of Olongapo And George Dewey Medical College, Inc. (GDMCI) Represented By Its Vice President For Academic Affairs, Dr. Ruby J. Cirineo For The Affiliation And Training Of Its Nursing Students At The James L. Gordon Memorial Hospital,” was approved unanimously on its second and final reading, on motion of Councilor Angelito W. Baloy.

6. Draft Resolution No. 2009 R-067 – “A Resolution Rescinding The Memorandum Of Agreement (MOA) Between TCR Technology Advancement System, The City Of Olongapo And The Olongapo City Police District Office Dated January 12, 2006.”

The Presiding Officer acknowledged the presence of SPO1 Bonifacio Labrador, Chief Records Officer of the Olongapo City Police Office, and Atty. Batch Perez, representative from the mayor’s office.

Councilor Lupimano-Garcia asked the proponent to enlighten the members of the body regarding what was agreed upon in the Memorandum of Agreement (MoA) last 2006.

Councilor Piano recapitulated that last January, 2006, a Memorandum of Agreement between Olongapo City, TCR Technology, and the PNP was finalized regarding the issuance of police clearances. TCR will be in charge of computerizing the issuance of police clearances. The company has obligations stipulated in the MoA, the same with the PNP and the local government unit. The Councilor cited that a few months ago, they started receiving numerous complaints concerning issues of over-charging and delayed issuance of police clearances. The Public Utilities Department head also claimed that they are not paying their electric bill, so the local chief of police wrote to the mayor, who in turn wrote to the City Council, requesting that the MoA be rescinded for breach of contract. The proponent called SPO1 Labrador to give further clarifications regarding the said matter.

SPO1 Labrador declared that he does not know anything regarding the MoA because he only handles the records. Mr. Rafanan is the one who signed the contract.

The Presiding Officer requested the staff to provide them copies of the MoA and the approved resolution approving the said MoA for discussion purposes.

Councilor Piano queried to SPO1 Labrador, being the chief of the records section of the Olongapo PNP, if he is satisfied with the performance of the system.

SPO1 Labrador observed that during his three-year tenure as chief records officer, the agreements stipulated in the MoA were not accomplished. He disclosed that in the MoA, all police precints in the City should be issued one set of computer. He added that they were given only one computer set for their use, but other precints were not.

Councilor Cerezo added that according to the MoA, TCR is willing to train the PNP personnel assigned for finger printing in the police clearance section, on how to use the system, at no cost at all. However, the chief of police also complained that TCR did not train any PNP personnel as stipulated in the MoA, on how to use the system, for free, to pave way for the eventual turn-over to the third party. As stated in the MoA, the second party agrees to provide space, electricity, and security for the computer system at the expense of the first party. However, according to the letter, there was no recorded payment of their electric consumptions, since the effectivity of the contract. That is where the breach in the memorandum transpired, as written in the letter from the Mayor’s Office, chief of police, and Oscar Albayalde, officer-in-charge.

Councilor Lipumano-Garcia questioned SPO1 Labrador when the said MoA took effect. She also wanted to know when the police officer began his duty at the police department. To verify, she also asked the officer what was the price of the police clearance, and if the system was already computerized when the agreement with TCR became effective. Similarly, the Councilor also pointed-out the allegations they heard that they are charging higher prices for the clearances.

The police officer answered that he has not begun his post yet as records officer when the MoA with TCR began and he was appointed on the 25th of March, 2006. He expressed that the system has already been computerized since he took office. He also explained to the body that the City and police department charge the issuance of police clearances at different prices. The city issues police clearances for purposes of traveling abroad at PhP100.00 each and for purposes of local employment at PhP75.00 each. On the other hand, the police department issues both clearances at PhP100.00 per clearance.

The Presiding Officer declared that they were told that the police department charges as much as PhP400.00 per clearance.

SPO1 Labrador denied the allegation. He mentioned that there will be a public outcry if they are allegedly charging that much.

Councilor delos Reyes disclosed that he already brought this matter up four months ago. The Councilor voiced-out that only the PhP100.00 police clearances are issued with official receipts, but not the PhP200.00 police clearances.

The Presiding Officer butted in and inquired to the police officer if the city’s personnel or theirs receive the payments for the clearances. She also wanted to clarify if they issue official receipts for the issuance of clearances, and if the receipts where issued by their own company.

SPO1 Labrador reasoned out that it is the city personnel who collect the payments for the said clearances. He added that our city personnel issues official receipts for every transaction, even those clearances priced at PhP 200.00, and their receipts were issued by the company.

Councilor delos Reyes expressed that he will call the radio station and will request all concerned citizens who were issued with receipts to visit his office to testify against these illegal acts. He relayed that he feels shocked that after unfolding the said issue, nothing happened. He cited that it is impossible for the concerned individuals not to notice the illegal undertakings that are happening in their office. He said that he will try to speak again to the complainants so that the concerns that he raises will have basis.

Councilor Lipumano-Garcia declared that she has a copy of the receipt of a child who requested for a police clearance, priced at PhP75.00 was issued with a receipt. The child paid an additional fee of PhP100.00, however, no receipt was issued for the additional charge.

SPO1 Labrador retorted that he does not know anything about the matter, since he only handles and manages records. He said that he has colleagues who handles the issuance of the receipts.

The Presiding Officer commented that the receipt they are issuing are official receipts of the City. It is a regulatory fee she said, and asked if it is stated in the contract that they can collect PhP100.00, even without issuing receipts.

He responded that he instructed his colleagues to always issue receipts, since most of them only issue receipts whenever asked to provide one.

After the discussion, the proponent communicated that he is having second thoughts moving on with the votation first, because the delay in the issuances of the police clearances cannot be clearly attributed to TCR alone, as stated by SPO1 Labrador. Second, since Hon. Councilor JC delos Reyes will call the complainants over the radio, we are not sure who collected the payments for the police clearances. If the complainants affirm that they handed-over their payments to the police department, how can we then conclude that there is an alleged breach of contract by TCR.

The Presiding Officer remarked that if there are employees who were victimized, they may write an affidavit and point-out who collected their payment and how much was charged.

Councilor delos Reyes tried to convince every one to be vigilant on this matter, since a lot of people have already been cheated. Prior to bringing-up this issue, he asked Mr. Jonathan de Castro to conduct initial investigations regarding this problem. He added that it is the prerogative of the Council to rescind this contract, since it is a form of franchise. A franchise is a privilege, and since it is government service, we can rescind it. Lastly, he voiced-out to his colleagues that they can cancel the Memorandum of Agreement if they have substantial basis that they are not doing the right thing.

Councilor Dabu gave her opinion that as she was listening to the statement of the police officer, she noticed that there is a lot of stipulation indicated in the contract that have not been followed, like the supposed training that was not held, the computers that were not given, and non-issuance of official receipts.

The proponent called for the amendment of the title of the resolution to read “A Resolution Moving for the Rescission of the Memorandum of Agreement (MoA) between TCR Technology Advancement Systems, the City of Olongapo, and the Olongapo City Police District Office dated January 12, 2006 in a Manner in Accordance with t Law.”

Councilor delos Reyes interposed that the title is very awkward because the Council is moving that a motion should be done or should be on a particular subject. We are approving something that is supposedly to be voted upon.

Councilor Piano in return replied that because of the tripartite nature of the MoA, they cannot affect the rescission of the MoA because they are only parties to other parties in this MoA. He disclosed that the chief of police already made a formal letter to rescind the contract, so they are also expressing their sentiments regarding this matter.

Councilor Lipumano-Garcia clarified that since it is the Council who has the capacity to approve or rescind the MoA, why not they defer for a week to investigate first before deciding to cancel the MoA.

The proponent insisted that during the recess, the intent of the resolution is to investigate, since it already made attempts to invite TCR to join the session, so as to explain their side but unfortunately, they ignored the invitation. With a formal motion to rescind, this will force them to explain because if they do not, the Council will finally end and finalize the rescission of the MoA. They want them to realize how serious the matter is, and for them to explain their side when called for investigation.

Councilor delos Reyes suggested that why do they not express their disgust instead for the way the police clearance section is being handled. He stressed that the mayor, having jurisdiction over businesses here through the business permit section,. can simply shut-down their business since earlier, we found out that they have no business permit. So in this case, why don’t they close it down, or approve a resolution stating their disgust over the exorbitant fees charged without receipts.

Councilor Piano remarked that as the mover of the resolution, he implied to include the sentiments of the Council on how the police clearance is being handled by the Olongapo Police District Office. He recapped that in the past, they authorized the city mayor to enter into this MoA, and during the discussion, the Mayor’s Office requested that we initiate the investigations to make changes regarding the issue, since we are the ones who authorized him to enter this MoA based on our studies.

The Presiding Officer asked the members of the body whether they want to authorize the mayor to rescind the contract, since it is stated in his letter that he is requesting the Sanggunian to consider drafting a resolution authorizing him to rescind the MoA with TCR.

Councilor Piano agreed and stated that this is the original request of the city mayor. But after discussing the issue, they decided to pursue the investigation on the matter to give TCR due process before rescinding the MoA. He added that after this resolution is approved, the Committees on Power, Public Safety, Business and Information Technology will have to convene as joint committees in order to verify the claims and make sure we have verified complaints before they make the final decision. After the committee hearing, they will make a recommendation to finally pass a resolution authorizing the city mayor to rescind the MoA.

Councilor delos Reyes expressed that aside from the terms of agreement, the Council need not to rescind the contract. According to him, only two things happen when you enter into an agreement – either the entities involved complies or not. If the concerned parties does not comply, the city mayor, through the legal officer, can file charges against the offending party for breach of contract. If there is any violation of the contract, the legal officer can directly file charges against the breacher. He relayed that this is the legal process. If someone does not comply, the mayor files a case through its legal officer.

In consideration with the statement of Councilor delos Reyes, Councilor Piano manifested that he would like to take this opportunity to have precedence over government contracts. He revealed that it is the first time that the City Council has gathered for a long period of time moving for the rescission of a contract. He would like to take this opportunity to suggest that we have a precedent, so that other contracts, like contracts for computerization, that are not delivering what has been agreed upon, may be cancelled. He believes that if they pass the resolution, they will have precedence over existing and future contracts, and they will have the capacity to cancel those contracts that are unfavorable or disadvantageous to the government.

Councilor Gina Perez recommended to her colleagues that since it was mentioned a while back that according to the city mayor, he is requesting the Sanggunian to draft a resolution giving him authority to rescind the contract, why do they not stick instead to what is indicated in the letter.

After a thorough deliberation by members of the body, Draft Resolution No. 2009 R-067 was approved unanimously on its second and final reading, on motion of Councilor Edwin J. Piano.

Other Matters

A. Draft Resolution No. 2009 R-068 – “A Resolution Extending Earnest Invitation To The Sangguniang Kabataan National Federation To Hold Its National Congress In Olongapo City/Subic In October 2009,” was unanimously approved on its second and final reading, on motion of Councilor Gina G. Perez.

B. Draft Resolution No. 2009 R-069 – “A Resolution Authorizing The Honorable City Mayor James Gordon, Jr. To Prepare The Terms Of Reference To Bid Out For Long Term Lease Of The Olongapo City Mall.”

As a backgrounder, the proponent cited that last 23rd of April, 2008, they have approved Resolution No. 54, Series Of 2008, authorizing our City Mayor to prepare the terms of reference to bid-out for long-term lease the Olongapo City Mall. Based on section 17, 4j of our Local Government Code, it states that we can divest on economic enterprises, so that we can provide more opportunities for the private sectors. Now, as discussed and recommended by the Executive Department, they are giving us their new conditions for the terms of use, so that it will be more attractive to those who want to lease in the city mall. The Calvary property and its nearby areas will be awarded to the winning bidder. The winner will only be required to only pay for the first ten years of the contract. The councilor added that the goodwill fee was abolished so the terms of payment will be simpler.

Councilor delos Reyes asked the proponent why privatize the mall when he was told that it is making money.

Councilor Perez answered that the city mall, at the moment, is not making money, but at break-even only. She explained that the mall is only able to maintain its daily operational expenses and pay the monthly interests, but not the loan that was borrowed to fund the building of the mall. The mall was built as an economic enterprise primarily to provide additional income for the city, but unfortunately, it is not giving back what is expected. She said that it will be better if they will give the private sector the chance to be part of this business, so that we can concentrate more on basic services. She also voiced-out that the vice-mayor mentioned last time that the reason why the mall was put up is to promote business opportunities for the small and medium enterprises. According to her, the City has accomplished that objective already but at the moment, the City cannot sustain, aside from payment of the interest. The reason why they are doing this is for the people who are interested to help in alleviating the situation.

Councilor delos Reyes remarked that for the record, the government should not compete with the private sector. He expressed that he has knowledge that this project was disapproved by the Board of Investment way back, so it will be for correcting the wrong policy of putting up the mall.

Councilor Lipumano-Garcia requested to her colleagues that once the resolution to privatize the mall is approved, they should monitor carefully and entail the private individual or corporation to pay directly to the bank, if possible.

The Presiding Officer cited that they should closely monitor the payment, and oblige the private entity to submit the receipt to them as proof that the debt is being paid regularly. She added that they can include in the agreement with the private entity that if they will fail to pay, they will answer to the City.

Without further discussion, Draft Resolution No. 2009 R-069 was approved on a majority of votes, with one abstaining, on its second and final reading, on motion of Councilor Gina G. Perez.

C. “A Resolution Declaring Support Of The City Government To The Larolympics In Olongapo City, An Initiative Of Anak TV In Coordination With The Local Sangguniang Kabataan (SK) And City Social Welfare And Development Office (CSWDO).”

Councilor Hoya relayed that Anak Pinoy is an organization founded by several television stations in our country, which aims to popularize street games and our Filipino culture. She cited that most of our children today are getting engrossed in watching television and playing computer games, than get involved in sports and street games. She voiced-out that the SK Federation, in cooperation with the CSWD, will hold the launching ceremonies of the Larolympics on the 6th of July 2009. The main event will be from July 9 to 10, 2009. Baguio City, Makati City, Olongapo City, Naga City, Santiago City, Tagaytay City, and Marikina City will participate in the said event.

Draft Resolution was unanimously approved on its second and final reading, on motion of Councilor Cheenee F. Hoya.

Adjournment

There being no other matters to be discussed, the session was adjourned at 7:35 in the evening.

I HEREBY CERTIFY TO THE

CORRECTNESS OF THE FOREGOING:

JOCELYN PASCUAL-NIÑONUEVO

Temporary Council Secretary

ATTEST:

CYNTHIA G. CAJUDO

City Vice-Mayor & Presiding Officer