2013 R - 07 - AUTHORIZING THE HONORABLE CITY MAYOR JAMES GORDON, JR. TO ENTER, EXECUTE AND SIGN AN AMENDED CONTRACT OF LEASE WITH SM PRIME HOLDINGS, INC. TO ENSURE GREATER PROTECTION AND MAXIMIZE BENEFITS ACCRUING TO THE CITY OF OLONGAPO, IN A MANNER CONSISTENT WITH LAW

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON JANUARY 16, 2013 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. 07

(Series of 2013)

A RESOLUTION AUTHORIZING THE HONORABLE CITY MAYOR JAMES GORDON, JR. TO ENTER, EXECUTE AND SIGN AN AMENDED CONTRACT OF LEASE WITH SM PRIME HOLDINGS, INC. TO ENSURE GREATER PROTECTION AND MAXIMIZE BENEFITS ACCRUING TO THE CITY OF OLONGAPO, IN A MANNER CONSISTENT WITH LAW

WHEREAS, the city passed a series of legislation and complied with all legal requirements with respect to the original 2009 Contract of Lease between the City and SM Prime Holdings, Inc. as reflected in the following: Resolution No. 54, Series of 2008, “A Resolution authorizing Honorable City Mayor James Gordon, Jr. to prepare the Terms of Reference to bid out for long-term lease, the Olongapo City Mall”; Resolution No. 79, Series of 2009; Resolution No. 162, Series of 2009; “A Resolution accepting the Proposal of SM Prime Holdings, Inc., and approving the Competitive Challenge procedure as a mode of awarding the lease contract relative thereto, subject to existing auditing rules and applicable legal requirements”; Resolution No. 169, Series of 2009. “A Resolution approving the Joint Recommendation of the Negotiation Team of the SM Prime Holdings, Inc. relative to the Unsolicited Proposal for the long-term lease of the Olongapo City Mall”; Resolution No. 158 Series of 2009, “A Resolution repealing city council resolution No. 114 Series of 2009, to secure the best possible terms for, and optimum benefits from, the long-term lease of City Mall”; Resolution No. 170, Series of 2009, “ A Resolution confirming the Negotiations and approving the Terms of Reference, guidelines and schedule of activities relative to the SWISS/Competitive Challenge mode for the long-term lease of Olongapo City Mall”; Resolution No. 182 Series of 2009, “A Resolution approving the issuance of a Notice of Award of the long-term lease of the City Mall to SM Prime Holdings, Inc. and authorizing the City Mayor to enter into a contract of lease pursuant thereto”;

WHEREAS, the contract and eventual partnership with SM Prime Holdings, Inc. has reaped various additional spill-over and corollary benefits to the local community which include initiatives such as the provision for SM college scholarships for qualified Olongapo youth, SM provisions for a mobile clinic / health van which assist barangays in health service, SM provision for tree planting or agriculture related initiatives, employment generation for almost three thousand (3,000) Olongapo City residents from its date of permits and taxes to the city, conduct of activities which promote the city’s local talents and tourism, tie-ups with the city’s social service offices such as with the City Health Office and the James L. Gordon Memorial Hospital and the attraction of new businesses to the city;

WHEREAS, to ensure that all contact terms and conditions and processes relating thereto would be just, equitable, legal and transparent, with the goal of facilitating the realization of the greatest possible advantage and benefit to the City of Olongapo, the City Finance Team caused an updated review of the 2009 Contract of Lease with SM Prime Holdings, Inc.;

WHEREAS, as per Finance Team review, there is a need to integrate, modify or amend certain provisions in the Contract of Lease which effectively increased the incentives to the city and strengthened its protective provisions in favor of the city;

WHEREAS, as a matter of legal consequence and necessity, there is a need to enter, execute and sign an Amended Contract of Lease to ensure that it would be in consonance the best interests and greatest advantage to the city, with the following recommended terms to be integrated in the pertinent portions of the 2009 Contract of Lease between the City of Olongapo and SM Prime Holdings, Inc.: (a) a provision that the ownership of the City Mall building which SM Prime Holdings, Inc. rehabilitated, repaired, developed and renovated shall revert back to the city after expiration of the lease term without need of reimbursement; (b) any adoption of previous or new terms and conditions of lease or any agreement in the event of its renewal  after expiration of the lease term shall be made subject of negotiations and mutual agreement between the City and SM Prime Holdings, Inc.; (c) incentives shall be made subject to existing city and national legislation and regulations as to coverage and limitations; (d) provisions in the Contract shall be understood to be made subject of implementation and enforcement, in a manner consistent with pertinent laws, rules and regulations;

NOW, THEREFORE, on motion of City Councilor Gina G. Perez, on behalf of City Councilors Rodel S. Cerezo, Eyrma Yvette Marzan-Estrella, Elena C. Dabu, Eduardo J. Piano, 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 authorize as it hereby authorizes, the Honorable City Mayor James Gordon, Jr. to Enter, Execute, and Sign an Amended Contract of Lease with SM Prime Holdings, Inc. to Ensure Greater Protection and Maximize Benefits Accruing to the City of Olongapo, in a manner consistent with law.

APPROVED UNANIMOUSLY, January 16, 2013.