2009 R - 115 - AUTHORIZING THE HON. MAYOR GORDON TO REPRESENT THE CITY OF OLONGAPO AND ENTER INTO A CONTRACT OF LOAN WITH THE DBP IN THE PRINCIPAL

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON AUGUST 19, 2009 AT THE CITY HALL.

PRESENT:

Hon. Cynthia G. Cajudo - - City Vice-Mayor & Presiding Officer
Hon. Gina Gulanes-Perez - - - City Councilor
Hon. Rodel S. Cerezo - - - - - - “ “
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. Jonathan G. Manalo- - - - “ “
Hon. Cheenee F. Hoya- - - SK Federation President

ABSENT:

Hon. John Carlos G. Delos Reyes- - - City Councilor
Hon. Carlito A. Baloy - - President, Liga ng mga Barangay

RESOLUTION NO. 115
(Series of 2009)

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 EIGHTY ONE MILLION PESOS (PHP81,000,000.00) 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. 181, Series of 2008 approving the acquisition of Dredging Machine for the use of regular desilting and maintenance of all rivers 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 urgent need in order to prevent or minimize floods and disasters in the City;

WHEREAS, the equipment specified as :

(1) One unit versi dredge with star wheel drive - PhP67,500,000.00
(2) One unit sewer drainage vacuum cleaner and declogging machine- PhP13,500,000.00
TOTAL - PhP81,000,000.00

shall require funding at the level of Eighty One Million Pesos (PhP81,000,000.00) which can be sourced through a loan;

NOW, THEREFORE, on motion of Councilor Jonathan G. Manalo co-sponsored by Councilors Edwin J. Piano and Anselmo A. Aquino 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 authorize, as it hereby authorizes 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 Eighty One Million Pesos (PhP81,000,000.00) from the DBP in behalf of the City for the following purpose:

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

2. The issuance of an authorization/instruction letter to the Department of Budget and Management (DBP) to remit all or a portion of the City 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 portion thereof by the DBM from DBP to any other bank without the DBP’s prior written 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 (The “Deposit Account”) with DBP where the City’s share in IRA or a portion 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 of 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 obligation with DBP;

7. The undertaking of the City that it will not incur additional obligation/indebtedness without the prior written consent of DBP which consent will not be unreasonably withheld;

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.

APPROVED, August 19, 2009.


CYNTHIA G. CAJUDO
City Vice-Mayor & Presiding Officer


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


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


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)


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