Minutes of Sangguniang Panlungsod Session

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 G. 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

Call to Order

The City Vice-Mayor and Presiding Officer Cynthia G. Cajudo called the session to order at 4:40 in the afternoon.

Roll Call

With ten (10) City Councilors and the Presiding Officer present, a quorum was declared. Hon. Carlito A. Baloy, on the other hand, the Council Secretary acknowledged the receipt of an advisory from the Department of the Interior and Local Government Region III, regarding the reschedule of consultation conference on mobilizing local actions to address climate change.

Reading and Adoption of Minutes

On motion of Councilor Gina G. Perez, the minutes of the regular session dated July 22, 2009 was adopted unanimously by the body.

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 Ordinance No. 2009 O-26 – An Ordinance Repealing Ordinance Nos. 7, 10, 12, 15 & 20, Series Of 2009 And Approving And Appropriating The Amount Of Ninety One Million Three Hundred Seventy Four Thousand Seven Hundred Fifteen Pesos And Thirty Nine Centavos (Php 91,374,715.39) As Supplemental Budget For Calendar Year 2009. Sponsored By Councilor Jonathan G. Manalo (Referred to the Committee on Appropriations)

2. Draft Resolution No. 2009 R-087 – A Resolution Ratifying The Memorandum Of Understanding (MOU) Entered Into By And Between The City Government Of Olongapo Represented By Mayor James Gordon, Jr. With TCM International Manpower Services Represented By Miss Cristina Roque For The Guam Build-Up Project. Sponsored By Councilor Edwin J. Piano (Referred to the Committee as a Whole)

3. Draft Resolution No. 2009 R-088 – A Resolution Ratifying The Memorandum Of Understanding (MOU) Entered Into By And Between The City Government Of Olongapo Represented By Mayor James Gordon, Jr. With LCR Manpower Corporation, Inc., Represented By Miss Ma. Lourdes Capua For The Guam Build-Up Project. Sponsored By Councilor Edwin J. Piano (Referred to the Committee as a Whole)

4. Draft Resolution No. 2009 R-089 – A Resolution Ratifying The Memorandum Of Understanding (MOU) Entered Into By And Between The City Government Of Olongapo Represented By Mayor James Gordon, Jr. With Bellestar Promotion Inc., Represented By Miss Bella E. Dimayuga For The Guam Build-Up Project. Sponsored By Councilor Edwin J. Piano (Referred to the Committee as a Whole)

5. Draft Resolution No. 2009 R-090 – A Resolution Ratifying The Memorandum Of Understanding (MOU) Entered Into By And Between The City Government Of Olongapo Represented By Mayor James Gordon, Jr. With Goldmarc International Career Corp., Represented By Mr. Manuel Arce For The Guam Build-Up Project. Sponsored By Councilor Edwin J. Piano (Referred to the Committee as a Whole)

6. Draft Resolution No. 2009 R-091 – A Resolution Ratifying The Memorandum Of Understanding (MOU) Entered Into By And Between The City Government Of Olongapo Represented By Mayor James Gordon, Jr. With Philippine Association Of Service Exporters Inc., Represented By Mr. Victor E.R. Fernandez, Jr. For The Guam Build-Up Project. Sponsored By Councilor Edwin J. Piano (Referred to the Committee as a Whole)

7. Draft Resolution No. 2009 R-092 – A Resolution Enjoining All Telecom Service Providers In Olongapo City, Subic Bay Freeport And Zambales To Immediately Implement The National Telecommunication Commission Memorandum Circular 09-08-2007 Otherwise Known As The Interconnection Of Local Exchange Carriers. Sponsored By Councilor Edwin J. Piano (Referred to the Committee on Telecommunications)

Second Reading:

1. Draft Resolution No. 2009 R-082 – A Resolution Designating Mr. Edward A. Artis As An “Ambassador Of Goodwill For Olongapo City”. Sponsored Unanimously

2. Draft Resolution No. 2009 R-083 – A Resolution Commending Barangay Sta. Rita Rescue Unit For Winning The Regional Kalasag Urban Categories. Sponsored Unanimously

Councilor Gina G. Perez requested the august body to include on first reading “A Resolution Adopting The Terms Of Reference To Enter Into A Long Term Lease Agreement Regarding The Olongapo City Mall By And Between The Olongapo City Government Represented By The Hon. City Mayor James Gordon, Jr. And The Winning Bidder”. Sponsored by the Majority Party. (Referred to the Committees on Markets and Mall and on Business)

Councilor Jonathan G. Manalo also manifested for the inclusion of Ordinance Numbers twenty – four (24) and twenty – six (26) in title of the first item under first reading In relation, the councilor also motioned for the addition of “A Resolution Authorizing The Hon. 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 The Principal Amount Of 81 Million Pesos For The Purpose Stated Herein And To Sign The Loan Agreement, Deed Of Assignment And Promissory Note And Other Documents Related Thereto,” sponsored by Councilors Jonathan G. Manalo, Edwin J. Piano, and Anselmo A. Aquino, and was referred to the Committees on Public Works and on Appropriations.

With no further observations/comments, the body approved and adopted unanimously the items on first and second reading, as amended.

Communications and Referrals of Business

Communications Read:

1. Letter from Atty. Maria Rosario S. Cesa, addressed to the Hon. City Mayor James Gordon, Jr., regarding the 2nd Preventive Suspension Order against Mr. Carlito A. Baloy. (For information)

2. Memorandum from Ferdie M. Magrata, City Administrator, Olongapo City, addressed to All Department Heads & Chief of Offices, City of Olongapo, regarding the “Share-A-Spare” Program for the Flood Victims in Botolan, Zambales. Department Heads shall designate Program Coordinator for their respective offices and all items collected shall be turned - over to the City Social Welfare Development Office (CSWDO), through Ms. Gene Eclarino, for custody and delivery to the beneficiaries. (For information)

3. Letter from Emilie Fe M. delos Santos, City Prosecutor, Department Of Justice, National Prosecution Service, City Prosecution Office, Olongapo City, addressed to the City Mayor James Gordon, Jr. thru the City Council, Olongapo City, requesting for the supplemental budget for Calendar Year 2009 of their Office under Maintenance and Other Operating Expenses of the following items, to wit: (Referred to the Committee on Appropriations)

Office Supplies - - - - - - - - - - - - - - - - PhP70,000.00

Gasoline, Oil & Lubricants - - - - - - - - 30,000.00

Other Supplies -- - - - - - - - - - - - - - - - 50,000.00

Repair & Maintenance of Office Equipments 100,000.00

Telephone Expenses (Landline) - - - - - - - - 30,000.00

Repair & Maintenance of Office Vehicles - - 30,000.00

Subsidy to National Government Agency - - 28,000.00

_____________

T O T A L PhP308,000.00

4. Letter from Councilor John Carlos G. delos Reyes addressed to the Hon. James Gordon, Jr, City Mayor, Olongapo City attention: Engr. Marivic Nierras, OIC-City Planning Office, in reference to the recently approved Resolutions No. R-064 and R-065, Series of 2009, “A Resolution Approving The Application Of Digitel Telecommunications, Inc. (Sun Cellular) For The Installation And Operation Of Cellsite/GSM Antenna At Barangay New Asinan and at Barangay East Tapinac, Olongapo City, respectively”. He is requesting for the complete list of installed cell sites here in Olongapo City in aid of legislation, because his office received complaints on the health risks these cell sites may pose. (Referred to the Committee on Telecommunications)

5. Memorandum from Honorio Gomez, OIC, JLGAMM Administrator for the Hon. City Mayor James Gordon, Jr., regarding the Income Report For The Month Of July 2009. There was a decrease of PhP139,236.78 as compared to last year. (Referred to the Committee on Ways and Means)

6. Letter from the Hon. City Mayor James Gordon, Jr. addressed to the Hon. City Vice Mayor Cynthia G. Cajudo and Members, requesting the Sangguniang Panlungsod to consider an ordinance approving and appropriating the amount of Ninety One Million Three Hundred Seventy Four Thousand Seven Hundred Fifteen Pesos And 39/100 (PhP91,374,715.39) as Supplemental Budget for Calendar Year 2009 to cover additional budgetary requirements for the operation of the city. (Referred to the Committee on Appropriations)

7. Letter from Hon. Mac Arnold D. Concepcion, SK Chairman, New Cabalan, Olongapo City, addressed to Perla C. Jacinto, Barangay Treasurer, New Cabalan, Olongapo City. This is in relation with his demand letter ordering and threatening him to return back items used during the 1st SK Christmas Inter-Purok Basketball League 2008 which was purchased under SK Resolution No. 23 (Series of 2008) and informing her that the said request letter was sent to him in the time he had no acting capacity as SK Chairman due to his suspension. (Referred to the Sangguniang Kabataan Federation Chairman)

8. Letter from Hon. Mac Arnold D. Concepcion, SK Chairman, New Cabalan, Olongapo City, addressed to Mr. Eliseo P. de Guzman, City Director, DILG, Olongapo City, with regards to the response letter dated August 10, 2009 in relation with his letter to his office seeking clarification on the issue of his unpaid salary. (Referred to the Sangguniang Kabataan Federation Chairman)

9. Memorandum from Perla C. Jacinto, Barangay Treasurer, Brgy. New Cabalan, Olongapo City, addressed to Hon. Mac Arnold Concepcion, SK Chairman, New Cabalan, Olongapo City, regarding the Response Letter Dated August 13, 2009. (Referred to the Sangguniang Kabataan Federation Chairman)

10. Letter from Lloyd D. Nicdao, Committee Chairman, 1st SK Christmas Inter-Purok Basketball League 2008, wherein they sent a letter to Mac Arnold Concepcion asking him to return sports materials that were purchased by the SK under Resolution No. 23 (Series of 2008). The letter asked him to return 3 (three) pieces of Basketball balls, 8 (eight) pieces of Basketball nets and trophies that were also purchased under the same SK Resolution. (Referred to the Sangguniang Kabataan Federation Chairman)

11. Letter from the students of the Information and Communication Technology Department, Olongapo City National High School addressed to the Hon. City Vice Mayor Cynthia G. Cajudo requesting her permission to secure copies of the resolutions and ordinances pertinent to their research on the History of Public Utility Jeepneys here in our city. (Attended by the aide of Councilor Cortez Mr. Gonzales. For notation)

12. Letter from Jefferson M. Sadera, Assistant Professor, Columban College, addressed to the Hon. City Vice Mayor Cynthia G. Cajudo asking her to allow the following Political Science students of Columban College to observe at least four (4) sessions of the proceedings of the Olongapo City Council:

Castañeda, Vhoenie John

Manglicmot, Eirene Jaye

Pascua, Angelyn

Elamparo, Rupert

Vanta, Roselyn

The Presiding Officer acknowledged the presence of Mr. Jordan Dizon, from the College of Arts and Sciences, Columban College.

13. Memorandum from Damian P. delos Santos, Jr., OIC, Olongapo City Public Market for the Hon. City Mayor James Gordon, Jr., regarding the Comparative Monthly Statement of Income for the month of July (Year 2008 & 2009). There was an increase of PhP22,191.84 as compared to last year. (Referred to the Committees on Markets and Mall and on Ways and Means)

14. Memorandum from Councilor Gina Gulanes Perez, Philippine Councilors League, Olongapo City Chapter for the Hon. City Mayor James Gordon, Jr., regarding the Attendance to the 3rd Quarterly NEO-NB & Series of 2009 CLLEP Meeting which will be held on September 24-26, 2009 at the Negros Oriental Convention Center, Dumaguete City, Negros Oriental whose names are stated hereunder: (For notation)

Gina Gulanes Perez

Elena Dabu

Edwin Piano

Anselmo Aquino

Jonathan Manalo

Aquilino Cortez

Rodel Cerezo

15. Invitation from Hon. Ma. Cecilia V. Mayo, President & Councilor of Valenzuela City, Women Involved In Nation Building, addressed to all Members of the Sangguniang Panlungsod announcing that WIN will hold its 16th Annual Congress on September 28 – 30, 2009 at the Heritage Hotel, Pasay City. (Referred to the Committee on Women)

16. Memorandum from Engr. Marivic J. Nierras, OIC, CPDO, to all Department Heads and Chief of Offices regarding Calendar of Activities for the 4th Quarter. (For information of everyone)

Committee Reports

None

Calendar of Business

1. Draft Resolution No. 2009 R-082 – A Resolution Designating Mr. Edward A. Artis As An “Ambassador Of Goodwill For Olongapo City”. Sponsored Unanimously.

Councilor Edwin J. Piano recalled that during the last session, he brought – up the matter, based on his research in the Internet as to the question as to the character of Mr. Artis. As the proponent, he himself made an equally thorough research on the person of Mr. Artis, and enumerated the many accomplishments of the subject. To quote the proponent, Mr. Artis was a recipient of a plaque of recognition by the Police Regional Office – III, led by Police Chief Ismael Rafanan, for his untiring support on the programs and projects of the PNP on the protection and welfare that benefited the Committees of Region III. He also mentioned the many reports on various news articles from established news organizations – citing Mr. Artis as instrumental for the provision of more wheelchairs to Olongapo City for persons with disability, including imported high – end wheelchairs worth PhP 40,000.00 each. Being the Chairman of Knight Bridge International, Sir Edward Artis has visited the city and was presented a resolution by the City Officials, as ‘SON OF OLONGAPO CITY’. In addition to his philanthropic works, the City of Olongapo received numerous medical and dental equipments and medicines as well, and provided free medical treatment, including free transportation, for major cases on children that needs to be treated overseas. According to Councilor Piano, the CBS television news program in the U.S. featured Mr. Artis as a Modern Day Knight. His travel around the world to help people in need is a part of the humanitarian acts of the Knight Bridge Organization, which he co – founded. Another independent, international newspaper, the PBS, reported that Mr. Artis was instrumental in bringing in the Philippines 25 and 40 – foot containers of medical and educational materials, and another 120 – footer container of little league baseball sports equipment in a bid to re- establish the little league baseball in the Philippines. Another news article reported Knight Bridge International Wheelchair Foundation donated four hundred (400) wheelchairs to Filipinos with disabilities, which was witnessed by former President Ramos, Senator Gordon, and AFP Chief Hermogenes Esperon.

With the many good things written in the articles mentioned about Mr. Artis, against the findings of Councilor Jong Cortez, referring to Mr. Artis as a “Doctor of Deception,” Councilor Piano preferred not to consider it in their decision, especially that the news article was based from an unknown source. While what he enumerated came from a respectable news article from here and abroad. According to him, the conferment as “Ambassador of Goodwill” is intended for the impending transfer of U.S. Military Base from Okinawa to Guam. The proponent considered Mr. Artis as capable of acquiring these donations for the city, judging from the fact that he also facilitated the six (6) million peso donation by the Swiss government through the Swiss Firemen Association to the City of Olongapo.

Councilor Jong Cortez clarified that it was Councilor JC who asked who Mr. Artis is during the last session, saying he was only compelled to look into the Internet to find – out any information about the subject.

Councilor Lipumano – Garcia requested the proponent to make it a majority sponsorship and not unanimous.

Councilor Perez was agreeable to all the philanthropic acts enumerated by Councilor Piano and suggested that all negative views must have been erased in the minds, with all the many good deeds that covered it. As to the concern of Councilor JC, regarding the manner of conferring the title of “Ambassador of Goodwill”, she already has a draft prepared for comment of everybody before she will introduce in the council. This will serve as guideline on the process of conferring the title.

Councilor Aquino inquired about the nationality of Mr. Artis, whether he is an American or Filipino, and the propriety of designating him as “Ambassador of Goodwill” if he is not Filipino.

Councilor Piano clarified that Mr. Artis is an American who preferred to retire in the Philippines. He only goes abroad if there are important arrangements to make with regards to donations.

With no further discussions, Draft Resolution designating Mr. Artis as “Ambassador of Goodwill’’ was approved unanimously, in its second and final reading.

2. Draft Resolution No. 2009 R-083 – “A Resolution Commending Barangay Sta. Rita Rescue Unit For Winning The Regional Kalasag Urban Categories.”

.

Before moving for the approval of the said measure, Councilor Piano introduced the amended title as a “Resolution Commending Barangay Sta. Rita Disaster Management Council for its Accomplishments in the NDCC Gawad Kalasag.”

Councilor Cerezo, being from Barangay Sta. Rita and member of NDCC, corrected the proponent by changing the word “management council” to “barangay disaster coordinating council.”

Eliminating the words “Sta. Rita Rescue Unit” and the word “ urban categories”, Councilor Piano pointed – out that many awards were already received, such as: Regional Gawad Kalasag Award for two (2) consecutive years; Second runner – up in the 6th Regional First – Aid and Basic Life Support Olympics, and second placer in the Best Barangay Disaster Coordinating Council. All will fall under the accomplishments in the National Disaster Coordinating Council Gawad Kalasag awards.

With all these amendments in the title, “A Resolution Commending Barangay Sta. Rita Disaster Coordinating Council For Its Accomplishments In The NDCC Gawad Kalasag,”, was approved unanimously in its second and final reading, on motion of Councilor Edwin J. Piano.

Other Matters

A. Councilor Perez moved for the urgency under first reading the Draft Resolution Adopting the Terms of Reference to Enter into a Long – Term Lease Agreement Regarding the Olongapo City Mall by and between the City Government, and the Winning Bidder.

Councilor Lipumano – Garcia asked for the reason for its urgency. The proponent reasoned out that this resolution should have been introduced by the Committee Chair on Business in the last session, but was absent that time. The urgency can be explained in the previous two (2) resolutions way back in April and June 24.

Councilor Gina Perez requested for a recess for the City Accountant to evaluate further the specific terms of reference, as this is recommended by the Finance Committee.

The Presiding Officer declared recess.

RECESS: 5:27 P.M.

RESUMPTION: 5:30 P.M.

After a brief recess, Mr. Dennis Martinez was recognized to discuss the merits of the resolution. At the same time, Councilor Perez presented the copy of the terms of reference.

Mr. Martinez explained that the terms of reference was prepared and anchored according to two (2) thrusts of the city. First, with the pending investment of three (3) big mall operators represented by Ayala Inc., SM, and Filinvest, and the attendance of the City Mayor to the Board of Directors of SBMA, it appears that in the feasibility study conducted, there is no market for two (2) malls. According to the three (3) mall operators, the City Mall is considered competitive enough, but there is a need to divest its operation. Since the mall was funded by DBP loans, it is important for the city to face its obligations, and be able to liquidate them from the financial standings of the city. The term of lease shall be for forty – eight (48) years, and with the 80% of the mall operators also known as “anchor stalls” such as Jollibee, Greenwich, and DIY to lead the mall. Once the entry of the big mall operators, it is expected that the income of the mall by the first year of operation of the new mall will decrease by 80%. He explained that the annual rates will be based on fixed amount, which will range from 5% to 10% of prevailing gross rental of the Olongapo City Mall.

The main thrust is that the city is willing to upfront or accept from the winning bidder a term that they should be able to upfront the loan for the first ten (10) years, which is the remaining years left to pay the debt amounting to PhP144 million. The amortization ranges from Php25 to Php27 million per year, which means that if the mall gains a profit of Php40 to Php45 million, less 80%, the gross income will be between PhP12 to PhP15 million, which is not enough for the yearly amortization of Php25 – Php29 million. To be leased is the total area of the mall, including the Calvary area to the one who will operate the mall. Included in the terms of reference, they will also require to put – up a secured deposit to make sure that the loans will be paid to the DBP and Land Bank, and at the end of the lease period all improvements done, including the original properties, will be reverted to the city.

Analyzing the content of the terms of reference, Councilor Perez believed that it is advantageous on the part of the city. It is just a matter of knowing the right bidder who can effectively operate the mall. It is hard for the city to subsidize private structure instead of using the funds to provide the basic services program, just like what China did in privatizing government properties.

Councilor Cortez wanted to ask from Mr. Martinez the financial status of the City Mall, and whether it can independently sustain the operation of the mall.

Mr. Martinez, in response, explained that it is self – sustaining as it is reflected on the approved 2009 budget. Its income is enough to cover all expenses, including amortization and principal payments, depending on the market condition. He stressed, however, that the entry of big mall operators in the SBMA is inevitable, especially now that they are preparing their own terms of reference. According to the plan, it will be located at the Park and Shop site, a stone throw away from the City Mall.

The Presiding Officer wanted to be clarified on item 7, regarding the option to pre – terminate the lease anytime, and the notice of pre – termination at 360 days prior to intended date. Item 8 says about the security deposit, in case of pre – termination.

Mr. Martinez answered that it will be used in paying the bank, because it is stated in the term that performance vary. Aside from the terms of reference, there will be a contract. The terms of reference that was prepared serves as the minimum requirement of the city for bidding purposes. Any bidder who can offer better terms more than the city term will be better and acceptable.

Expressing his observation on the topic, Councilor Gie Baloy said everything was put in detail and precise, that makes the city secured from any bidder. It is personally okay for him as Chairman of the Committee on Business and Enterprise.

Councilor Cortez cited that the example of Manuela Mall at EDSA Shaw, where it went bankrupt since SM Megamall started operating. Now, it is under new management, operating as Star Mall.

In response to Councilor Lipumano – Garcia’s question, Mr. Martinez explained that the winning bidder will still honor the lease of other tenants, but, the operation of the mall will be left to the mall operator. He also mentioned the many problems confronting the City Mall. The operation of the air – conditioning will cost around Php15 to Php20 million in investment for its improvement, while the escalator will cost Php5 to Php7 million. The tax holiday that will be granted to the mall operator will be five (5) years, while the tenants are subject to business taxes, such as business, mayor’s, sanitation, and building permits. Mr. Martinez further explained that they will be given option to offer the best manner of liquidating the loans, by integrating the loan in the lease payment, which is one way of liquidating the loan.

Councilor Lipumano – Garcia wanted to know from Mr. Martinez how much is the original loan, and how many more years to pay the loan obligation for the mall.

In response, Mr. Martinez informed everyone that the loan reached Php200 million. The mall was constructed in 2003, and was finished in 2004. Six years have already been paid for the loan obligation, including principal. There are no unpaid amortizations.

After a thorough discussion, the draft resolution was approved unanimously, in its second and final reading, on motion of Councilor Gina G. Perez.

B. Draft Ordinance No. 2009 O-26 – An Ordinance Repealing Ordinance Nos. 7, 10, 12, 15, 20, 24, And 26, Series Of 2009 And Approving And Appropriating The Amount Of Ninety One Million Three Hundred Seventy Four Thousand Seven Hundred Fifteen Pesos And Thirty Nine Centavos (Php 91,374,715.39) As Supplemental Budget For Calendar Year 2009.

Councilor Manalo moved for the urgency of the above – mentioned Draft Ordinance, explaining that this ordinance intends to consolidate all approved ordinances into one supplemental budget as required by the Department of Budget and Management. The City Treasurer has issued a certificate of availability of funds amounting to Php108,455,370. He also requested to acknowledge the presence of City Budget Officer Bebeth Marzan, who will elaborate on the matter.

Ms. Marzan explained that the DBM is undergoing some modifications on their procedures. According to her, they were advised to include in the appropriation the IRA differential expected from August to December. There is a need to adjust in the mandatory 5% IRA, and 20% development fund. All are being consolidated instead on a “piece meal” basis. This will reflect the total budget. It is a transition phase of the implementation of procedures in the DBM. She stressed, however, that there won’t be any effect on the ordinances that were passed because we were able to show the actual appropriation, and we’ve been able to follow the mandatory requirement.

Councilor Lipumano – Garcia expressed her dismay for not being able to obtain the copies of the annual budget she has been requesting. Despite the fact that she is willing to provide the materials to be used for its reproduction, all she has is a copy of the CD.

Ms. Marzan assured the councilor that they are willing to assist in the binding of the copy of the annual budget, it will be up to the vice – mayor for its release.

The Presiding Officer wanted to be sure that after the DBM approval, the annual budget will remain as it is, then she can release it.

After a thorough discussion, Draft Ordinance 2009 O–26 was approved by a majority vote, on motion of Councilor Jonathan G. Manalo. Nine (9) were in favor and one (1) opposed.

C. Draft Resolution Authorizing The Hon. 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 The Principal Amount Of 81 Million Pesos For The Purpose Stated Herein And To Sign The Loan Agreement, Deed Of Assignment And Promissory Note And Other Documents Related Thereto.

Councilor Manalo moved for its urgency. According to him, this resolution will supersede the previous resolution that was approved by DBP, amounting to Php90 million, which is the cost of the dredging machine. However, the amount that was approved by DBP that can be loaned by the city is Php81 million, the amount the city is capable of acquiring. The breakdown of the Php81 million is for one unit versi dredge with star wheel drive, which is the dredging machine costing Php67,500,000.00. One unit of sewer drainage vacuum cleaner and de - clogging machine costs Php13.5 million. This was described as the one that “sucks – up like vacuum” silted materials that clog the drainage system around the city streets. With a total of Php81 million, the remaining Php9 million will be funded by the city through an appropriation.

Councilor Lipumano – Garcia wanted to know more of the details about the kind of machine for this appropriation, or if this is of the same specifications as before.

Councilor Manalo answered that they are not yet appropriating, but merely authorizing. The complete details of the machine will be discussed if they reach the point of appropriating.

Councilor Perez tried to recall that way back in 2007…2006…, they were discussing the dredging machine. She suggested to check the minutes of the previous session.

Councilor Manalo clarified the matter by making clear that the Php67 million is entirely different, with only the inclusion of a de - clogging machine, but it’s the same ordinance.

Councilor Aquino further clarified that the cost of a dredging machine and de – clogging are separate. Php65 million were appropriated for the dredging machine, then Php90 million. There were some changes, however, until they appropriated Php67 million, to authorize the purchase by bidding. Php13,500,000.00 is the cost of the de – clogging machine for the drainage canals. The councilor also assured the Presiding Officer that he has the copy of the attachments.

Councilor Perez added that after they authorize the mayor, a bidding process will follow, and will be evaluated by the Finance Team and the Bids and Awards Committee, to determine the actual specifications of the machines to be needed. After which, an appropriation will be acted on. This resolution will supersede past resolutions.

Councilor Gie Baloy was also informed by the proponent that probably, the amount of Php67 million could be the ceiling price, and does not necessarily mean the actual value.

With no other further questions, the said resolution was approved by a majority vote, on its second and final reading, on motion of Councilor Jonathan G. Manalo. Nine (9) were in favor and one (1) opposed.

D. On the final note, Councilor Cerezo reminded his colleagues to refrain from making manifestations to their agenda and stick to what they have agreed to submit every Tuesday at 12 P.M., as provided in their House Rules. He added that if it is manifested, make sure that it will not be passed for urgency, unless very important. Appropriation ordinances need to be reviewed by the body. He recommended to include such in the agenda for the next session.

Adjournment

There being no further matters to be discussed, the session was adjourned at 6:10 in the evening, on motion of Councilor Anselmo A. Aquino.

I HEREBY CERTIFY TO THE

CORRECTNESS OF THE FOREGOING:

¬

ELFLIDA S. SALMON

Council Secretary

ATTEST:

CYNTHIA G. CAJUDO

City Vice-Mayor & Presiding Officer