Minutes of Sangguniang Panlungsod Session

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON OCTOBER 28, 2009 AT THE CITY HALL

Present:

Hon. Cynthia G. Cajudo - - - - - - - - - - - City Vice-Mayor & Presiding Officer

Hon. John Carlos G. Delos Reyes - - - - - - " "

Hon. Rodel S. Cerezo - - - - - - - - - - - - - - " "

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 - - - - - - - - - - - " "

Absent:

Hon. Gina G. Perez - - - - - - - - - - - - - - -City Councilor (On Official Business)

Hon. Sarah Lugerna Lipumano-Garcia - - -" "

Hon. Cheenee F. Hoya - - - - - - - - - - - - -SK Federation President (On Official Business)

Call to Order

The Presiding Officer Cynthia G. Cajudo called the session to order at 4:44 in the afternoon.

Roll Call

With seven Members of the City Council and the Presiding Officer present, a quorum was declared. However, City Councilor Aquilino Y. Cortez, Jr. arrived during the referral on First Reading.

Reading and Adoption of Minutes

On motion of City Councilor Rodel S. Cerezo, the reading and adoption of the Minutes of the Regular Session dated 7th of October 2009, was dispensed by the body, since it is not yet complete.

Reading and Approval of the Day’s Agenda

Before the approval of the day’s agenda, City Councilor Rodel S. Cerezo moved to dispense with the reading of the day’s agenda, since they have many items. The motion was unanimously approved by the members of the body.

First Reading:

1. Draft Resolution No. 2009 R-127 – A Resolution Approving The Letter Of Proxy Of Mr. Lex Byron Magrata To Represent The City Of Olongapo In The Annual Stockholder’s Meeting Of Subic Water And Sewerage Co. Inc. Sponsored by City Councilor Jonathan G. Manalo. (Referred to the Committee as a Whole)

2. Draft Resolution No. 2009 R-128 – A Resolution Approving The Long-Term Lease Of Olongapo City Mall As Proposed By SM Prime Holdings, Inc. And The Competitive Challenge Procedure As A Mode Of Awarding The Lease Contract Relative Thereto, Subject To Existing Auditing Rules And Applicable Legal Requirements. Sponsored by the Majority Party. (Referred to the Committee as a Whole)

3. Draft Resolution No. 2009 R-129 – A Resolution Calling On The Regional Development Council (RDC) To Establish A Relocation Site For Residents Who Are Living In Declared Disaster/Hazardous Areas In Central Luzon, Including Olongapo City. Sponsored by City Councilor Aquilino Y. Cortez., Jr. (Referred to the Committee as a Whole)

4. Draft Resolution No. 2009 R-130 – A Resolution Ratifying The Memorandum Of Agreement (MOA) By And Between The City Government Of Olongapo City And The Metro Olongapo Chamber Of Commerce (OBC), Inc. Represented By Its President Mr. Aurelio V. Pineda, Jr. For The Ulo Ng Apo Festival 2009 On October 29, 30, 31, 2009 At The Ramon Magsaysay Drive, Olongapo City. Sponsored by City Councilor Gina G. Perez. (Referred to the Committee as a Whole)

5. Draft Resolution No. 2009 R-131 – A Resolution Encouraging The Olongapo City Tourism Industry To Prepare For The Upcoming Advertising Congress On November 18-21, 2009 In Subic Bay Freeport Zone And To Participate In The Weeklong Citywide Sale On November 16-22, 2009. Sponsored by City Councilor Gina G. Perez. (Referred to the Committee on Tourism)

6. Draft Resolution No. 2009 R-132 – A Resolution Requesting The Department Of Trade and Industry (DTI) To Waive The Permit For The Weeklong Citywide Sale On November 16-22, 2009 For The Upcoming Advertising Congress. Sponsored by City Councilor Gina G. Perez. (Referred to the Committee on Business)

7. Draft Resolution No. 2009 R-133 – A Resolution Commending Philippine Drug Enforcement Agency (PDEA) For Apprehending Big-Time Drug Pushers In The Olongapo City. Sponsored by the Majority Party. (Referred to the Committee on Peace and Order)

Second Reading:

1. Draft Ordinance No. 2009 O-29 – An Ordinance Instituting Olongapo Product Development Center In The City, Creating A Policy Making Body, Establishing A Program For The Selection, Quality, Preservation, Packaging, And Promotion Of Authentic Local Products And Providing Funds Therefor. Sponsored by City Councilor Gina G. Perez.

2. Draft Ordinance No. 2009 O-31 – An Ordinance Establishing Olongapo City Code Of General Ordinances. Sponsored by City Councilor Edwin J. Piano.

3. Draft Resolution No. 2009 R-114 – A Resolution Authorizing The Honorable City Mayor James Gordon, Jr. To Secure A Department Of Environment And Natural Resources (DENR) Bathing Permit For Mayanga Island And Other Islands Surrounding Or Within The Jurisdiction Of Olongapo City. Sponsored by City Councilor Gina G. Perez.

4. Draft Resolution No. 2009 R-121 – A Resolution Naming The Park In Front Of Gordon College And Olongapo City Public Library To Fil-Am Park. Sponsored by City Councilor Edwin J. Piano.

5. Draft Ordinance No. 2009 O-33 – An Ordinance Establishing Clinics In Public Elementary And Secondary Schools In Olongapo City. Sponsored by City Councilor Gina G. Perez.

6. Draft Ordinance No. 2009 O-34 – An Ordinance Declaring December 7, 2009 As A Special Holiday In Olongapo City In Celebration Of The City’s 50th Turn-Over Anniversary From American Government And 26th Years Anniversary As Highly Urbanized City. Sponsored by City Councilor Edwin J. Piano.

7. Draft Ordinance No. 2009 O-35 – An Ordinance Disallowing The Posting Of Billboards Along Fenced Area Of Anonas Bridge, West Bajac-Bajac. Sponsored by City Councilor Edwin J. Piano.

8. Draft Resolution No. 2009 R-122 – A Resolution Authorizing The City Mayor James Gordon, Jr. To Enter Into Tripartite Agreement With Subic Bay Metropolitan Authority (SBMA) And Hanjin Heavy Industries And Construction – Philippines (HHIC-Phil) For The Construction And Operation Of A Jetty/Pier At Barangay Barretto. Sponsored by City Councilor Edwin J. Piano.

9. Draft Resolution No. 2009 R-123 – A Resolution Commending Eliseo De Guzman For His Invaluable Contributions To The City Of Olongapo As City Director Of The Department Of The Interior And Local Government (DILG). Sponsored by City Councilor Edwin J. Piano.

10. Draft Resolution No. 2009 R-124 – A Resolution Authorizing The City Mayor James Gordon, Jr. To Enter Into A Memorandum Of Understanding (MOU) With The SBDMC, Incorporated Represented By Its Corporate President, Mr. Jeff Lin Regarding The “Eco-Farm-Productivity Through Conservation” Project. Sponsored by City Councilor Elena C. Dabu.

11. Draft Ordinance No. 2009 O-36 – An Ordinance Centralizing The Landing Of Fishing Vessels At The New Banicain Fish Port And Providing Fees Thereof. Sponsored by City Councilor Edwin J. Piano.

City Councilor Edwin J. Piano manifested for the inclusion of an additional item under First Reading, entitled: “A Resolution Authorizing City Mayor James Gordon, Jr. To Enter Memorandum Of Understanding (MOU) With Philippine Postal Corporation Represented By Its Post Master General and Chief Operating Officer Mr. Hector Villanueva For The Printing And Issuance Of Commemorative Stamps Depicting The 50th Anniversary Of Olongapos’ Turn-Over From United States Of America To The Philippine Government.” (Referred to the Committee as a Whole)

With no other observations/comments, the members of the body unanimously adopted and approved the day’s agenda, as amended.

Communications and Referrals of Business

Communications Read:

1. First Endorsement from the City Mayor, addressed to the Honorable City Vice-Mayor and Members of the Sangguniang Panlungsod, the copy of the letter of Engineer Marivic Nierras, OIC, CPDO, requesting the enactment of an ordinance to centralize the landing of fishing vessels at the Banicain Fish Port. (Referred to the Committee on Transportation)

2. First Endorsement from the Honorable City Mayor James Gordon, Jr., addressed to the Honorable City Vice-Mayor and Members, Sangguniang Panlungsod, the draft copy of a statement/message for the proposed donation boxes, which shall be installed by Chowking Olongapo City at their respective branches in the city. The said project is intended to generate donations and goods for the victims in Pangasinan and Zambales affected by Typhoons Ondoy and Pepeng. (Referred to the Committee on Social Welfare)

3. Memorandum from City Councilor Gina Gulanes Perez for the Honorable City Mayor James Gordon, Jr. and Hon. City Vice-Mayor Cynthia G. Cajudo, which is a report on the consultation meeting regarding “Draft Ordinance Establishing Clinics in Public Elementary and Secondary Schools in Olongapo City.” (Referred to the Committees on Education and on Health)

4. Letter from City Councilor Edwin J. Piano, addressed to Pastor Edwin B. Agudo, President, Samahan ng Barrio Barretto Tricycle School Service Association, Brgy. Barretto, Olongapo City, pertaining to his application for accreditation with the City Council, which was referred to him. He is informing the said organization that the City Council is still conducting further review of their application, and is in the process of communicating with the Land Transportation and Franchising Board (LTFRB) for their opinion and procedures regarding school service using tricycles. (Referred to the Committee on Transportation)

5. Memorandum from the City Mayor addressed to all City Government Department Heads, all Barangay Captains, and all Heads of National Offices, regarding Konrad Adenauer Medal of Excellence Validation. The validating team of KAME will be visiting the city unannounced to conduct assessment and evaluation regarding the city’s standing for the award. We are directed to prepare for the random visit, actual interview, and records interview. (For information of everyone)

6. Letter from City Councilor Edwin J. Piano, LegMIS Project Manager, Chairman, Committee on Information Technology, addressed to Mr. Andy Yuzon, Project Manager, GEODATA, pertaining to his letter requesting for the formal acceptance of the Olongapo LegMIS project. In as much as the project is already in its final phase, he would like to have the LegMIS computer units relocated to its final and permanent location to properly evaluate the effectivity of the system.

The distribution preferred by the Sangguniang Panlungsod are as follows:

Two units at Secretarial Pool (Councilor’s Office)

Two units at Session Hall (SP Secretariat)

One unit for Project Manager and System Administrator

But, as agreed in the caucus, 1 unit will be at the Councilor’s Office, 3 units at the Session Hall, and 1 unit under City Councilor Piano’s administration.

7. Letter from the Honorable City Mayor James Gordon, Jr., addressed to the Honorable City Vice-Mayor Cynthia G. Cajudo and Members of the Sangguniang Panlungsod, pertaining to the proposed resolution denominated as “A Resolution Calling on the Regional Development Council (RDC) to Establish a Relocation Site for Residents who are Living in Declared Disaster/Hazardous Areas in Central Luzon, Including Olongapo City.” The City Mayor is certifying for the urgency of the passage of this resolution. (Referred to the Committee on the Environment)

8. Letter from the City Mayor addressed to the Honorable City Vice-Mayor and Members of the Sangguniang Panlungsod, on the proposed resolution denominated as “A Resolution Approving the Letter of Proxy of Mr. Lex Byron Magrata to Represent the City of Olongapo in the Annual Stockholder’s Meeting of Subic Water and Sewerage Co., Inc.” This is also certified as urgent. (Referred to the Committee as a Whole)

9. Letter from City Mayor addressed to the Honorable City Vice-Mayor and Members of the Sangguniang Panlungsod, pertaining to the proposed resolution denominated as “A Resolution Approving the Long-Term Lease of Olongapo City Mall as Proposed by SM Prime Holdings, Inc. and the Competitive Challenge Procedure as a Mode of Awarding the Lease Contract Relative Thereto, Subject to Existing Auditing Rules and Applicable Legal Requirements.” Also, certified as urgent by the City Mayor. (Referred to the Committee as a Whole)

10. Letter from Oscar DG. Agustin, City Assessor, Olongapo City, addressed to the Honorable Director, Department of Finance, Intramuros, Manila, forwarding the “Quarterly Report on Real Property Assessments” as of Third Quarter, ending September 2009. Attached is the revised copy of QAR as of Second Quarter, ending June 2009, and Comparative Assessment Profile by Quarter. (Referred to The Committee on Ways and Means)

11. Letter from City Councilor Angelito W. Baloy, Chairman, Committee on Business and Economic Enterprises, addressed to the Honorable City Vice-Mayor and Presiding Officer Cynthia G. Cajudo, in reference to the communication regarding the terms of reference for the lease of the Olongapo City Mall, endorsed to the Committee on Business and Economic Enterprises for review and recommendation. According to City Councilor Gie Baloy, since previous resolutions related thereto were passed by the members of the City Council as sponsored by the Majority Party, it is recommended for the same to be applied on the matter at hand. (Referred to the Committee as a Whole)

12. First Endorsement from Anneli R. Lontoc, Undersecretary for Road Transport, Department of Transportation And Communications (DOTC), referring to Chairman Alberto H. Suansing, Land Transportation Franchising and Regulatory Board (LTFRB), East Avenue, Diliman, Quezon City, for appropriate action, the attached Resolution No. 131, Series of 2009, from Sangguniang Panlungsod, Olongapo City. The last paragraph states: “Advice of the action taken, please send to Ms. Elflida S. Salmon, Sangguniang Panlungsod, Olongapo City. (For the information of everyone, specifically the Committee on Transportation)

13. Letter from City Councilor Edwin J. Piano, Director, Skills Training Center, addressed to fifteen Barangay Captains of Olongapo City. This letter contains the city’s thrust to help our constituents cope with the global demand for skilled workers and Mayor Gordon created HELPS Skills Training Program under the Olongapo City Skills Training Center – Gordon College. The program aims to reach-out for our constituents to avail of the city’s free training programs to gain knowledge, skills, and ability, and be more competitive in their chosen field. Among the new skills that they will be providing is the Small Engine Repair, which will cover lectures and hands-on training on repair of grass cutter, power generator, and motorcycle. The project is in partnership with TESDA-Zambales, which will run for three weeks per batch. Reserved are two slots for each barangay to avail the said training, which is limited to two batches. As per this record, Barangay Captain Sundiam of New Cabalan and Captain Gloria of New Kalalake have not received this communication yet. (For information and guidance)

14. Memorandum from City Councilor Gina Perez, addressed to the City Vice-Mayor, informing and seeking for the approval to change the title of the following resolution, which was duly approved last October 14, 2009 (41st Regular Session): “A Resolution Acknowledging The Accomplishments Of City Councilor Anselmo A. Aquino, Indorsing Him To The Philippine Councilors League Awards For Three Termer Councilors For 2001 To 2010.” The same resolution also applies for the accomplishments of City Councilor Edwin J. Piano. (Accepted for correction of the approved resolutions) and request from City Councilor Gina Perez, addressed to the City Vice-Mayor, for the deferment of the following legislative measures, since she is on official business: Draft Ordinance No. 2009 0-29, entitled: “An Ordinance Instituting Olongapo Products Center In The City, Creating A Policy Making Body, Establishing A Program For The Selection, Quality, Preservation, Packaging, And Promotion Of Authentic Local Products And Providing Funds Therefor,” Draft Ordinance No. 2009 0-33, entitled: “An Ordinance Establishing Clinics In Public Elementary And Secondary Schools In Olongapo City,” and Draft Resolution No. 2009 R-114, entitled: “A Resolution Authorizing The Honorable City Mayor James Gordon, Jr. To Secure A Department Of Environment And Natural Resources (DENR) Bathing Permit For Mayanga Island And Other Islands Surrounding Or Within The Jurisdiction Of Olongapo City,” and be respectfully referred to City Councilor Jong Cortez as Chair of the Committee on Environment. (For information and guidance)

15. Letter from Mary Sheryll L. Santiago, General Manager, Palm Tree Beach Resort, Bar and Hotel, (operated by Big Iron Resort, Inc.) for Honorable Vice-Mayor Cynthia G. Cajudo, requesting a special permit for a Polytechnic Fireworks Display being held at the above-named resort on December 31, 2009. It will commence between 7:00 P.M. to 10:00 P.M. This event is being held at Beach Front of Palm Tree Resort Bar Hotel and Restaurant, and Mango’s Hotel and Restaurant. They are anticipating around fifty guests. Precautions, safety measures, and city laws will be applied for the success of the event. (Referred to the Committees on Peace and Order and on Environment, and also to the Mayor’s Office for their information and guidance)

16. Letter from Ricardo F. Lupangco, Chairman, Olongapo-Tipo Transport Service Cooperative, Inc. (OTTSCI), for the Honorable Mayor James Gordon, “tungkol sa insidente ng maling paraan ng panghuhuli ng isang OTMPS personnel sa isang miembro ng OTTSCI.” (Referred to the Committee on Traffic and Transport for proper investigation)

17. First endorsement from The City Mayor James Gordon, Jr. dated 27 October 2009, forwarding to this office the Primers marked Annex A (50th Anniversary Issue) and Annex B (Special Edition) of the SM Prime Holdings as additional documents for the proposed resolution entitled: “A Resolution Approving The Long-Term Lease Of Olongapo City Mall As Proposed By SM Prime Holdings, Inc. And The Competitive Challenge Procedure As A Mode Of Awarding The Lease Contract Relative Thereto, Subject To Existing Auditing Rules And Applicable Legal Requirements.” (Referred to the Committee as a Whole for appropriate action)

18. Agenda of the Sangguniang Panlungsod Staff Meeting tomorrow: (1) submission of accomplishment report for the period 1 January 2009 to 15 October 2009, (2) wearing and display of City Government Employees Identification Cards, and (3) schedule in wearing prescribed uniforms, garbage segregation, and schedule of filing of leaves for the month of December 2009. The staff of the City Councilors has to ask permission before applying for leave to their respective Councilors. (Referred to the Council Secretary for appropriate action)

Committee Reports

None.

Calendar of Business

1. On behalf of City Councilor Gina G. Perez, City Councilor Rodel S. Cerezo moved for the deferment of Draft Ordinance No. 2009 O-29, entitled: “An Ordinance Instituting Olongapo Product Development Center In The City, Creating A Policy Making Body, Establishing A Program For The Selection, Quality, Preservation, Packaging, And Promotion Of Authentic Local Products And Providing Funds Therefor.” The body unanimously approved the motion.

2. City Councilor Edwin J. Piano moved to defer consideration of Draft Ordinance No. 2009 O-31, entitled: “An Ordinance Establishing Olongapo City Code Of General Ordinances,” which the body approved unanimously.

3. City Councilor Cortez opened item number three, Draft Resolution No. 2009 R-114, entitled: “A Resolution Authorizing The Honorable City Mayor James Gordon, Jr. To Secure A Department Of Environment And Natural Resources (DENR) Bathing Permit For Mayanga Island And Other Islands Surrounding Or Within The Jurisdiction Of Olongapo City,” for discussion.

The Presiding Officer acknowledged the presence of Atty. Batch Perez, who would shed some enlightenment with regard to the matter.

According to Atty. Perez, there are existing bodies of lands or islands within the jurisdiction of Olongapo City. These may be under the management of the Department of Environment and Natural Resources (DENR), as mandated by law, and being agents of the national government, who is in charge of all natural resources. He said that these land areas could be applied for by any private entity, so why does the city not apply for a bathing permit, and take over the management and development of these areas. He further cited that whatever benefits would accrue from its development would also accrue to the city.

City Councilor Delos Reyes asked the proponent to clarify if they are applying for a bathing or berthing permit. In response to City Councilor JC’s query, City Councilor Cortez clarified that the islands are just small, and is not fitted for berthing ships or boats, so the city is just asking for a bathing permit for beach goers, which, according to the Presiding Officer, is similar to Palawan.

In another query, City Councilor Gie Baloy inquired if there are existing maps or pictures of the islands that were being identified. The proponent answered that they have already been supplied with maps and plans of the area, from the DENR Land Management Services Office, identifying the exact geographical location of these islands, like Mayanga, Gabiota, and Oyster Rock.

The Presiding Officer declared a recess.

RESUME: 5:20 P.M.

RESUMPTION: 5:28 P.M.

After a brief recess, City Councilor Aquilino Y. Cortez, Jr. moved for the approval of Draft Resolution No. 2009 R-114, entitled: “A Resolution Authorizing The Honorable City Mayor James Gordon, Jr. To Secure A Department Of Environment And Natural Resources (DENR) Bathing Permit For Mayanga Island And Other Islands Surrounding Or Within The Jurisdiction Of Olongapo City.” The proposed measure was unanimously approved by the members of the body, in its second and final reading.

4. City Councilor Edwin J. Piano moved to defer consideration of Draft Resolution No. 2009 R-121, entitled: “A Resolution Naming The Park In Front Of Gordon College And Olongapo City Public Library To Fil-Am Park,” which the members of the body approved unanimously.

5. Based on the letter of City Councilor Gina G. Perez, the proponent, the Presiding Officer declared deferred Draft Ordinance No. 2009 0-33, entitled, “An Ordinance Establishing Clinics In Public Elementary And Secondary Schools In Olongapo City.” The members of the body unanimously approved the same.

6. City Councilor Piano introduced Draft Ordinance No. 2009 O-34, entitled: “An Ordinance Declaring December 7, 2009 As A Special Working Holiday In Olongapo City In Celebration Of The City’s 50th Turn-Over Anniversary From The American Government And 26th Years Anniversary As Highly Urbanized City.”

The proponent provided the historical background as basis for the said ordinance. It traced back to December 7, 1959, when the United States government relinquished its control over the town of Olongapo. After Olongapo’s independence, it became a chartered city, thru Republic Act 4645, and our city flourished, until it became a Highly Urbanized City on December 7, 1983. The city intends to celebrate this significant event in our city’s history. In fact, the City Mayor created an executive order creating a committee who will make the necessary planning for the said activities, which will be held to celebrate, commemorate, and re-enact the events that took place on that momentous day of December. He further added that they expect both local and national government employees here in Olongapo City, the NGOs, students, and officials of department or educational institutions will be attending the celebration.

City Councilor Piano is convincing the city government employees and students to participate in this remarkable occasion, and is proposing that they declare December 7, 2009 as a special working holiday, for our city to celebrate its 50th turnover anniversary from the American government, and the 26th years anniversary as Highly Urbanized City.

Before moving for its approval, the City Councilor moved to amend the title of the proposed measure, and include the word “working”, because as per their discussions with the local employers, it would put in additional difficulties on their budgets if there are additional non-working holidays. The members of the body approved the motion to amend the title of the proposed measure.

City Councilor Cerezo called for a recess.

The Presiding Officer declared a recess.

RECESS: 5:33 P.M.

RESUMPTION: 5:35 P.M.

After the recess, Draft Ordinance No. 2009 O-34, entitled: “An Ordinance Declaring December 7, 2009 As A Special Working Holiday In Olongapo City In Celebration Of The City’s 50th Turn-Over Anniversary From The American Government And 26th Years Anniversary As Highly Urbanized City,” was unanimously approved by the members of the body, in its second and final reading, on motion of City Councilor Edwin J. Piano.

7. Pending the scheduled public hearings, City Councilor Edwin J. Piano moved to defer consideration of Draft Ordinance No. 2009 O-35, entitled: “An Ordinance Disallowing The Posting Of Billboards Along The Fenced Area Of Anonas Bridge, West Bajac-Bajac.” The body unanimously approved the motion.

8. Draft Resolution No. 2009 R-122, entitled: “A Resolution Authorizing The City Mayor James Gordon, Jr. To Enter Into A Tripartite Agreement With Subic Bay Metropolitan Authority (SBMA) And Hanjin Heavy Industries And Construction – Philippines (HHIC-Phil) For The Construction And Operation Of A Jetty/Pier At Barangay Barretto,” was deferred unanimously by the members of the body, on motion of City Councilor Edwin J. Piano.

9. Draft Resolution No. 2009 R-123, entitled: “A Resolution Commending Eliseo De Guzman For His Invaluable Contributions To The City Of Olongapo As City Director Of The Department Of The Interior And Local Government (DILG),” was unanimously deferred by the body, on motion of City Councilor Edwin J. Piano.

10. City Councilor Dabu moved for the approval of Draft Resolution No. 2009 R-124, entitled: “A Resolution Authorizing The City Mayor James Gordon, Jr. To Enter Into A Memorandum Of Understanding (MOU) With The SBDMC, Incorporated Represented By Its Corporate President, Mr. Jeff Lin Regarding The “Eco-Farm Productivity Through Conservation” Project”.

In this Memorandum of Understanding (MOU), according to the proponent, the SBDMC will allocate a certain portion of vacant lot in the said property to be utilized for planting agricultural products for the benefit of the indigents who are members of the Urban Basic Services Program (UBSP) to be identified by Mr. Randino Ledesma. These members will be able to have the opportunity to plant any variety of vegetables, where the proceeds from its earnings will be divided – 80% will go to the beneficiaries, 10% for the city, and 10% for SBDMC. This will provide livelihood for its members. The intention is to promote agricultural intervention, and to address issues on food security, poverty, and nutrition, thru conduct of techno-demo and extension service. The proponent also acceded to the request of City Councilor Gie Baloy to put in full the words “Subic Bay Development Management Corporation” in the title of the resolution.

The Presiding Officer declared a recess.

RECESS: 5:40 P.M.

RESUMPTION: 5:42 P.M.

After the brief recess, upon motion of City Councilor Elena C. Dabu, Draft Resolution No. 2009 R-124, entitled: “A Resolution Authorizing The City Mayor James Gordon, Jr. To Enter Into A Memorandum Of Understanding (MOU) With The Subic Bay Development Management Corporation (SBDMC) Incorporated, Represented By Its Corporate President, Mr. Jeff Lin Regarding The “Eco-Farm Productivity Through Conservation” Project,” was unanimously approved by the body, in its second and final reading.

11. City Councilor Edwin J. Piano moved for the deferment of Draft Ordinance No. 2009 O-36, entitled: “An Ordinance Centralizing The Landing Of Fishing Vessels At The New Banicain Fish Port And Providing Fees Thereof,” pending the scheduled public hearing. The members of the body unanimously approved the motion.

Other Matters

A. City Councilor Manalo moved for the urgency of Draft Resolution No. 2009 R-127, entitled: “A Resolution Approving The Letter Of Proxy Of Mr. Lex Byron Magrata To Represent The City Of Olongapo In The Annual Stockholder’s Meeting Of Subic Water And Sewerage Co. Inc.”

As a stockholder of Subic Water, the city government was served a notice to attend its annual meeting of stockholders, to be held on November 5, 2009. The agenda to be considered in the meeting are: (1) reading of annual report and action thereto, (2) ratification and approval of Act of the Board of Directors and Officers for the year 2009, (3) appointment of independent auditors, and (4) election of directors. According to the proponent, the City Mayor will be on official travel, thereby appointing Mr. Lex Byron Magrata as proxy. It will require an “appointment of attorney or proxy,” supported by an appropriate board of authority or secretary’s certificate. Considering that the City Council acts as board of the city, a council resolution is in order. The proponent requested the Chair to recognize Mr. Lex Byron Magrata, who is present in the session, to enlighten the City Council with what Subic Water is doing so far.

The Presiding Officer acknowledged the presence of Mr. Lex Byron Magrata.

City Councilor Piano asked when Mr. Magrata was appointed as the city’s representative to Subic Water. In response, Mr. Magrata informed the body that he was appointed January 1, 2009.

In reference to Dr. Reblando and City Councilor Aquino, who were also appointed as previous representatives to Subic Water, were both confirmed through a council resolution. City Councilor Piano wanted to know if Mr. Magrata’s appointment has the City Council’s concurrence.

Mr. Magrata informed the body that all he has is a letter of authority coming from the City Mayor, and the said letter was submitted to the Board of Directors of Subic Water. City Councilor Piano asked why there is a need for a resolution, since he was already authorized by the City Mayor. Mr. Magrata made a distinction between being a member of the Board of Directors and as representative to attend the stockholders meeting representing the shares of the city in the absence of the City Mayor and he will perform the acts of a stockholder.

City Councilor Piano noticed that the copy of the letter of proxy is not dated, and the usual procedure at the Mayor’s Office, wherein there should be a counter sign by at least three persons, such as the head of legal, the secretary to the Mayor, and department concerned, is not present in the document. However, Mr. Magrata does not have the letter with him at that moment, and is willing to secure it from the records of Subic Water. Nonetheless, he said the signatures are immaterial to the stockholders meeting, what is required by law, according to him, is a copy of a council resolution for him to perform acts, which will bind the city in the stockholders meeting.

Nevertheless, City Councilor Piano wanted to know from him which items are to be ratified and approved, being part of the agenda, so the members will have the chance to be briefed with the affairs of Subic Water. Mr. Magrata said he does not have any idea, and that is the reason why he is asking for an authority from the City Council, so he can exercise his discretion and sound judgment on what is going to be discussed. He explained that the annual report, that the City Council is asking, is being submitted to the Mayor’s Office on a quarterly basis aside from the monthly report. He was not able to bring with him a copy, but is willing to present one, if he will be required. City Councilor Piano informed Mr. Magrata that once the City Council authorizes him, he will be voting in behalf of the city, and he will be acting for the interest of the city, and that is the reason why the City Council would like to know.

City Councilor Cortez wanted to know if the proposal to increase the water rates would be one of the agenda, of which Mr. Magrata answered he does not know what are the matters that will be brought up in the meeting. As to City Councilor Delos Reyes’ question, he informed him that the matter to be ratified were the acts already accomplished by the Board, and these pertains to those loans, which were applied by Subic Water from banks for the expansion of their operations in the city and in SBMA. He also acts as President of Subic Water, in substitution to Dr. Reblando’s position. He expressed his willingness to report in the City Council on what transpired during the stockholders meeting.

As to the incident that occurred recently, when Subic Water delivered a murky water supply in some barangays, he explained it was caused by the breakdown of the main pipeline in Barangay East Tapinac servicing Barangays East Bajac-Bajac, Sta. Rita, and Old Cabalan. In the process of its repair, which involved flushing, particles of mud and soil got in through the pipelines. Upon knowing this incident, the City Mayor requested him if he can talk to the Board Members if they could offer a rebate to those affected barangays. However, City Councilor Piano is not satisfied with just a rebate.

Since there was an assurance from the President of Subic Water (Mr. Magrata) that there is no water rate increase, and his advice to the people to sue the company, City Councilor Piano agreed to give him authority to attend the stockholders meeting. The President, however, made it known to the City Council that whatever decision or declaration he makes in the meeting can always be over-runned by the quorum under the Corporation Code. The city only represents 10% of the shares against 90% of the total number of stockholders. He made it clear that the authority is only for this particular stockholders meeting.

With no other questions asked, upon motion of City Councilor Jonathan G. Manalo, Resolution No. 2009 R-127 was unanimously approved by the members of the body, in its second and final reading.

B. City Councilor Piano moved as an urgent matter Draft Resolution No. 2009 R-128, entitled: “A Resolution Approving The Long-Term Lease Of Olongapo City Mall As Proposed By SM Prime Holdings, Inc. And The Competitive Challenge Procedure As A Mode Of Awarding The Lease Contract Relative Thereto, Subject To Existing Auditing Rules And Applicable Legal Requirements.” Sponsored by the Majority Party.

He manifested to amend the title of the proposed measure, to read: “A Resolution Accepting The Proposal Of SM Prime Holdings, Inc. And Approving The Competitive Challenge Procedure As A Mode Of Awarding The Lease Of Contract Relative Thereto, Subject To The Existing Auditing Rules And Applicable Legal Requirements,” which nobody objected.

As a backgrounder, the movant informed the City Council that SM Prime Holdings has submitted an unsolicited proposal for a long-term lease of the Olongapo City Mall containing the salient features and the credibility of the company as a respected real estate developer and retailer, with a cumulative project cost investment in the country at the ballpark figure of PhP25 billion.

City Councilor Piano explained that the intention of the resolution is to authorize the City Mayor to form a committee that would formulate the terms of reference for the long-term lease of the said City Mall. He opened the proposed measure for discussion, and requested the Presiding Officer to recognize Attorney Batch Perez, who is present in the session hall, to enlighten the City Council on the matter.

On City Councilor Baloy’s query, Attorney Perez explained that the lease rate for the first twenty-five years would be Php25.00 per square meter or 5% of the prevailing rental income of the property, whichever is higher, and is renewable for another twenty-five years. He said that currently, the projected income is Php2 to Php2.5 Million, which is the prevailing rate of the City Mall. It appears to City Councilor Cortez that at the rate of Php25.00 per square meter for the next twenty-five years, SM is assuming the payment of the Php112 Million, which is quite big enough. Attorney Perez added that the advantage is that upon automatic assumption of the loan, the city can earn already. City Councilor Delos Reyes suggested that they get the opinion of the Finance Committee or Special Committee, since they are not experts on this matter.

City Councilor Piano clarified what is being accepted is the proposal, and that it does not mean that the city is ready to enter into a lease contract, until the City Mayor is authorized to form a committee to study the terms of reference. After the drafting of the TOR, it will be sent back to the City Council for approval. Attorney Perez explained what is being observed in this procedure is its transparency and competitiveness.

City Councilor Delos Reyes deems that it is not sound to use the words “accepting the long-term lease” in the title, and said that he will oppose it.

RECESS: 6:30 P.M.

RESUMPTION: 6:33 P.M.

After a lengthy discussion, on motion of City Councilor Edwin J. Piano, Draft Resolution No. 2009 R-128 was approved by the members of the body by a majority vote, in its second and final reading. This is by majority sponsorship, except City Councilor JC delos Reyes.

Seven voted in favor and one opposed.

C. City Councilor Cortez moved for the urgency and approval of Draft Resolution No. 2009 R-129, entitled: “A Resolution Calling On The Regional Development Council (RDC) To Establish A Relocation Site For Residents Who Are Living In Declared Disaster/Hazardous Areas In Central Luzon, Including Olongapo City,” which was unanimously approved.

For clarificatory remarks, City Councilor Cortez informed the body that the City Mayor will be attending the Regional Development Council in San Fernando, and this resolution will be presented to the RDC for possible assistance to help the city in identifying sites for relocation for its residents, in the event that another disaster strikes.

The relocation sites, he said, to be identified by the RDC are areas in Central Luzon, comprising the provinces of Aurora, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, and Zambales. The Mines and Geo-Sciences Bureau has identified certain areas in Olongapo City that are at risk of facing landslides and floodings.

City Councilor Delos Reyes said that he finds it awkward for the city to be asking the RDC to locate the sites, when it should be the city itself that should find them. In response, City Councilor Cortez explained that what the resolution is trying its best to find solutions in alleviating the plight of the residents who are facing dislocations in times of calamities and disasters. Seeking the assistance of RDC is one of the options. He cited as an example Governor Amor Deloso, who was able to identify a five-hectare site in Barangay New Taugtog in Botolan, Zambales, and another ten hectares, which is being considered by the Bureau of Mines. It is what Mayor James Gordon, Jr. would like to happen.

The proponent further mentioned that this resolution would help pave the way, through the assistance of the RDC, to provide some sort of remedy to the problem.

To the query of City Councilor Delos Reyes if Olongapo has its relocation site, City Councilor Cortez answered that the city has no relocation site, because at the moment, we do not have groups of displaced people, who needs relocation. He further pointed out that in Barangay Sta. Rita, which is a flood-prone area, the residents only transfer to evacuation areas during emergencies, but tend to go back to their houses after the flood subsides.

To further explain the intention of the resolution, City Councilor Piano said that it is meant for the whole of Region III, including Metro Manila, since most of its residents are living at considered ‘dangerous areas.’ He said that the only alternative sites that can be identified are the vast spaces available along the SCTEX. He cited that the plan is to build a housing complex, for those residents coming from Olongapo, Pampanga, and other areas, who will be displaced. The original plan came from the national government, and the RDC is just responding to the proposal. The City Mayor wanted to be part of this project.

City Councilor Piano requested the Presiding Officer to recognize once more Attorney Perez, who tried to explain that the relocation site being mentioned is a possible alternative place where people could transfer, either temporarily or permanently, and a new community to be located for the future.

Everyone agreed on the advantages it will bring in the passing of this resolution, but they just have to make extensive planning to make it as effective as possible.

Upon the motion of City Councilor Aquilino Y. Cortez, Jr., Draft Resolution No. 2009 R-129 was approved by the members of the body unanimously, in its second and final reading.

Adjournment

There being no other matters to be discussed, the session was adjourned at 7:01 in the evening, on motion of City Councilor Anselmo A. Aquino.

I HEREBY CERTIFY TO THE

CORRECTNESS OF THE FOREGOING:

ELFLIDA S. SALMON

Council Secretary

ATTEST:

CYNTHIA G. CAJUDO

Vice-Mayor & Presiding Officer