2012 R - 116 - APPROVING THE TERMS OF REFERENCE FOR THE DISPOSITION AND SALE OF THE CITY’S 915,580 OF COMMON “A” SHARES OF STOCK WITH THE SUBIC WATER AND SEWERAGE COMPANY, AUTHORIZING THE IMPLEMENTATION OF SALE AND DISPOSITION BY THE TECHNICAL COMMITTEE / SPECIAL BIDS AND AWARDS COMMITTEE IN COORDINATION WITH THE COMMISSION ON AUDIT AND SUBIC BAY METROPOLITAN AUTHORITY, IN A MANNER CONSISTENT WITH LAW

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON NOVEMBER 21, 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

RESOLUTION NO. 116

(Series of 2012)

A RESOLUTION APPROVING THE TERMS OF REFERENCE FOR THE DISPOSITION AND SALE OF THE CITY’S 915,580 OF COMMON “A” SHARES OF STOCK WITH THE SUBIC WATER AND SEWERAGE COMPANY, AUTHORIZING THE IMPLEMENTATION OF SALE AND DISPOSITION BY THE TECHNICAL COMMITTEE / SPECIAL BIDS AND AWARDS COMMITTEE IN COORDINATION WITH THE COMMISSION ON AUDIT AND SUBIC BAY METROPOLITAN AUTHORITY, IN A MANNER CONSISTENT WITH LAW

WHEREAS, by local legislative fiat, the city formally declared and manifested its intent to serve as a regulator of the Subic Water and Sewerage Company, Inc. (Subic Water) given its primary mandate of protecting the welfare of its local constituency;

WHEREAS, to eliminate the current conflict of interest with the city being a proprietor, co-owner and shareholder of ten percent (10%) of Subic Water receiving profits from charges levied upon the local community while at the same time being a regulator and performing its governmental function opposing the levies of Subic Water which it deems to be without rational basis;

WHEREAS, the technical committee comprised of the city’s Finance Committee, the Office of the City Legal and the City Planning and Development Office met and the Finance Committee outlined the required Terms of Reference for the Sale and Disposition of the city’s shares of stock with the Subic Water;

WHEREAS, the technical committee consulted the Commission on Audit (COA), through the Office of the City Auditor, and secured the commitment of the Commission on Audit that it shall guide the city in all stages of the sale and disposition, and the Commission on Audit directed the attention of the technical committee to Commission on Audit Circular Nos. 89-296, 2011-002 and to Section 444 of Republic Act No. 7160, wherein the Commission on Audit shall subject all processes relating to the disposition to post-audit to determine the city’s compliance with Commission on Audit Circular No. 89-296;

WHEREAS, the technical committee made an initial recommendation and approval of the Terms of Reference with the mandate to always coordinate with the Commission on Audit to ensure the integrity of the sale and disposition processes and to protect the best advantage of the city;

WHEREAS, as per recommendation from the technical committee, the salient Terms of Reference for the sale and disposition of the city’s shares of stock are as follows: (a) the City’s 915,580 Common “A” shares of stock shall be earmarked for the sale of disposition under a public bidding; (b) the price per share is pegged at P230.00 per share of stock which is substantially higher that the valuation set by the Subic Bay Metropolitan Authority and the Subic Water’s official external auditor Punongbayan & Araullo; (c) submission by the bidder of documents specified in the Terms of Reference designated to be the ‘eligibility documents’ the ‘bid tender documents’ and the ‘bid security documents’ which will show its capacity to remit full payment of the winning bid price under the public bidding processes and abide by pertinent legal protocols shall be required; (d) the provisions under Commission on Audit Circular Nos. 89-296, 2011-002 and to Section 224 of Republic Act No. 7160 in relation to Republic Act NO. 9184 shall be faithfully observed; (e) viva voce bidding shall be implemented during the public bidding processes and provisions are provided for evaluation of bids, due diligence, protest, award and execution of contract after payments are remitted; (f) a Special Bids and Awards Committee (SBAC) shall be constituted to act as the technical committee and as the disposal committee as required under Commission on Audit Circular No. 89-296; (g) all processes shall be transparent, with the Commission on Audit participation through coordination, guidance and actual presence during the public bidding shall be followed pursuant to Commission on Audit Circular No. 89-296; and (h) the other details specified under herewith annexed and presented to the City Council “Terms of Reference and Instructions to Bidder for the Sale of the City of Olongapo’s 915,580 Shares of Common “A” Stock in Subic Water and Sewerage Company, Inc. herewith made an integral part of the present legislation by reference;

NOW, THEREFORE, on motion of City Councilor Gina Gulanes-Perez co sponsored by City Councilors Rodel S. Cerezo, Eyrma Yvette Marzan-Estrella, Elena C. Dabu, Eduardo J. Piano and Edna A. Elane, 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 approve as it hereby approves, the Terms of Reference for the Disposition and Sale of the City’s 915,580 of Common “A” Shares of Stock With The Subic Water And Sewerage Company, Authorizing The Implementation Of Sale and Disposition By the Technical Committee/Special Bids and Awards Committee In Coordination With the Commission On Audit and Subic Bay Metropolitan Authority, In a Manner Consistent With Law.

 APPROVED UNANIMOUSLY, November 21, 2012.