2009 R - 177 - ACCEPTING THE PROPOSAL OF CROWNE ASIA DEVELOPMENT CORPORATION AND APPROVING THE COMPETITIVE CHALLENGE PROCEDURE AS A MODE OF AWARDING

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON NOVEMBER 18, 2009 AT THE CITY HALL.

PRESENT:

Hon. Gina Gulanes-Perez - -City Councilor & Temporary Presiding Officer

Hon. John Carlos G. delos Reyes- - 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. Cynthia G. Cajudo - - - City Vice-Mayor & Presiding Officer

(On Leave)

RESOLUTION NO. 177

(Series of 2009)

A RESOLUTION ACCEPTING THE PROPOSAL OF CROWNE ASIA DEVELOPMENT CORPORATION AND APPROVING THE COMPETITIVE CHALLENGE PROCEDURE AS A MODE OF AWARDING THE JOINT VENTURE RELATIVE THERETO, SUBJECT TO EXISTING AUDITING RULES AND APPLICABLE LEGAL REQUIREMENTS

WHEREAS, in a letter dated 23 September 2009, Crowne Asia Development Corporation (Crowne Asia), through its President, manifested its intent to lease, utilize and develop into a premier tourist destination, a property located within and under the jurisdiction of Olongapo City, otherwise known as Halfmoon Beach (THE PROPERTY);

WHEREAS, in line with its manifested interest to invest in aforesaid property, it submitted an unsolicited proposal, the salient terms of which, among others, included: (a) lease term of twenty-five (25) years, renewable for another twenty-five (25) years to allow full development of the property; (b) payment of lease rentals at the proposed rate in the amount Three Pesos (PHP3.00) per square meter; (c) an advance rental payment of Two Hundred Thousand Pesos (PHP200,000.00); (d) an increasing graduated percentage share of “3% (beginning on the sixth year to tenth year) 5% (beginning on the eleventh to the fifteenth year) and 7%” (beginning on the sixteenth year and thereafter); and (d) a fixed ten percent (10%) share in the revenues generated from any assignment or sublease effected in the property. This aside from the payments of real estate taxes by the proponent Crowne Asia;

WHEREAS, Crowne Asia has obliged itself to undertake the development of the property into a first-class/world class tourist facility in line with the City's socio-economic programs, and in consonance with the City's thrust on tourism for community empowerment;

WHEREAS, any such proposed arrangement shall be effected without prejudice to any pending incidents, concerns, or cases involving the property which may be subject of the proposed arrangement;

WHEREAS, the Competitive/Swiss Challenge Mode is a legally sanctioned mode of bidding, and is defined under Commission on Audit (COA) Decision No. 2009-064 (dated 20 July 2009) where it was held that “the Swiss Challenge proposal approximates the nature and requirements of a public bidding which are essentially transparency and competitiveness”, “it is just a variation of the entire public bidding process”;

WHEREAS, to ensure that the City would secure only the best possible terms from any arrangement involving public interest, the City Mayor must be authorized to form a committee that would formulate the Terms of Reference (TOR) for the long-term lease through the Competitive/Swiss Challenge Mode, pursuant to and consistent with existing auditing rules and legal requirements;

NOW, THEREFORE, on motion of City Councilor Edwin J. Piano, 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 accept, as it hereby accepts, the Proposal Of Crowne Asia Development Corporation And Approving The Competitive Challenge Procedure As A Mode Of Awarding The Joint Venture Relative Thereto, Subject To Existing Auditing Rules And Applicable Legal Requirements.

APPROVED, November 18, 2009.

CYNTHIA G. CAJUDO

City Vice-Mayor & Presiding Officer

(On Leave)

GINA GULANES-PEREZ JOHN CARLOS G. DELOS REYES

City Councilor City Councilor

& Temporary Presiding Officer (Opposed)

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

CHEENEE F. HOYA

SK Federation President

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