2012 R - 072 - ACCEPTING THE UNSOLICITED PROPOSAL OF BEACON MARKETING FOR THE UPGRAIDING AND DEVELOPMENT OF THE OLONGAPO CITY SLAUGHTERHOUSE IN A MANNER CONSISTENT WITH LAW

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON JUNE 20, 2012 AT THE CITY HALL.

PRESENT:

Hon. Rolen C. Paulino - -  City Vice-Mayor & Presiding Officer

Hon. Rodel S. Cerezo - - - City Councilor

Hon. Eyrma Yvette Marzan-Estrella - “        “

Hon. Aquilino Y. Cortez, Jr.- - - - “        “

Hon. James G. Delos Reyes -  - “        “

Hon. Gina Gulanes-Perez - - - “        “

Hon. Elena C. Dabu - - - -   “        “

Hon. Eduardo J. Piano - - - -  “        “

Hon. Edna A. Elane - - -   “        “

Hon. Noel Y. Atienza - - -  “        “

Hon. Sarah Lugerna Lipumano-Garcia - - - “        “

Hon. Dolly Mae M. Ramos -  SK Federation President   

ABSENT:

Hon. Carlito A. Baloy - - President, Liga ng mga Barangay (Sick Leave)

RESOLUTION NO. 72

(Series of 2012)

A RESOLUTION ACCEPTING THE UNSOLICITED PROPOSAL OF BEACON MARKETING FOR THE UPGRAIDING AND DEVELOPMENT OF THE OLONGAPO CITY SLAUGHTERHOUSE IN A MANNER CONSISTENT WITH LAW

WHEREAS, in accordance with the national policy of President Benigno C. Aquino III of pursuing Public-Private Partnership (PPP) projects in the implementation of the Local Government development programs and projects, Beacon Marketing, represented by its General Manager, Mr. Patrick Philip A. Pineda, submitted an unsolicited proposal for the concession/franchise of the City Slaughterhouse with a view to upgrading and developing its facilities;

WHEREAS, at its current state, the Olongapo city Slaughterhouse, covering a land area of approximately ‘4,000’ square meters in Barangay Sta. Rita, the said facility is one of the few remaining slaughterhouse in the region which is still not accredited as “AA” standard by the Department of Agriculture – National Meat Inspection Service – in light of the requirements of the Department of Agriculture – National Meat Inspection Service;

WHEREAS, the terms proposed by Beacon Marketing include the improvement, upgrading and enhancement of the  existing infrastructure, providing the working capital for the facility, providing long term financing and after the lease period turn over the facility to the Local Government Unit, with the following details, among others: (a) Offered the payment of an Annual Franchise Fee of Php500,000.00 or 15% of the gross slaughter fees, whichever is higher; (b)Committed investment and improvement amounting to Php20,600,000.00; (c) Shouldering all costs to be incurred in the construction, operation, repairs and maintenance, and management of the slaughterhouse for the contract period; (d) Contract Duration for 25 years; (e) Payment to be remitted to the city through the City Treasurer’s Office on a quarterly basis, and which shall start on the first day of the operation of the Slaughterhouse computed from the first day of operation by the proponent; (f) The Ante Mortem and Post Mortem fees shall go directly to the City Government through the City Veterinary Office, the rate of which will be determined by the city; (g) The proponent will impose increase in the necessary fees or charges in the following schedules upon operation of the new and renovated slaughterhouse, provided they already got the “AA” accreditation of the NMIS; (h) Retention of 1^st to 2^nd year fees (i.e.) fees will be retained- Hogs: Php69 per head plus Php23 for ante and post mortem inspection fees; Large Animals: Php185 per head plus Php40 for ante and post mortem inspection fees – 3^rd to 5^th year: Fees will be adjusted (Hogs: Php97 per head plus Php23 for ante and post mortem inspection fees; Large Animals: Php210 per head plus Php40 for ante and post mortem inspection fees; 6^th to 10^th year: Fees will be adjusted to Php108.64 per head of hogs and Php235.20 per head for large animals plus adjusted ante and post mortem inspection fee must be adjusted upon amending the City Ordinance; 11^th to 15^th year: Fees will be adjusted to Php121.68 per head of hogs and Php235.42 for large animals plus adjusted ante and post mortem inspection fee must be adjusted upon amending the city Ordnance; 16^th to 20^th year: Fees will be adjusted to Php136.28 per head of hogs and Php295.03 per head for large animals plus adjusted ante and post mortem inspection fee must be adjusted upon amending the City Ordinance; 21^st to 25^th year: Fees will be adjusted to Php152.63 per head of hogs and Php330.44 for large animals plus adjusted ante and post mortem inspection fee must be adjusted upon amending the city Ordinance;

WHEREAS, the unsolicited proposal has been endorsed by the Local Development Council (LCD) and has been apprised and recommended by the City Finance and Appraisal Committee;

NOW, THEREFORE, on motion of City Councilor Gina Gulanes-Perez with the majority decision of the Members of the Sangguniang Panlungsod present; 

RESOLVED, AS IT IS HEREBY RESOLVED, by the Sangguniang Panlungosd in session assembled, to accept as it hereby accepts the unsolicited proposal of Beacon marketing for the upgrading and development of the Olongapo city Slaughterhouse in a manner consistent with Law.

APPROVED UNANIMOUSLY, June 20, 2012.