2013 R - 158 - AFFIRMING THE INTEREST OF OLONGAPO CITY TO APPLY, NEGOTIATE AND BORROW FUNDS FROM THE MUNICIPAL DEVELOPMENT FUND OFFICE (MDFO) OF THE DEPARTMENT OF FINANCE (DOF) FOR THE IMPLEMENTATION OF THE FERRY RE-DEVELOPMENT OF THE OLONGAPO-SUBIC BAY DRAINAGE CHANNEL PROJECT”

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION  OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON DECEMBER 18, 2013 AT THE CITY HALL.

  

PRESENT:

Hon. Rodel S. Cerezo - - - City Vice-Mayor & Presiding Officer

Hon. Eyrma Yvette Marzan-Estrella- - City Councilor

Hon. Eduardo J. Piano-   “       “

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

Hon. Eduardo G. Guerrero-  “       “

Hon. Benjamin G. Cajudo II - -   “       “

Hon. Elena C. Dabu - - -    “       “

Hon. Noel Y. Atienza -  “       “

Hon. Alreuela M. Bundang-Ortiz - -    “       “

Hon. Edna A. Elane-     “       “

Hon. Emerito Linus D. Bacay - -    “       “

Hon. Basilio D. Palo - - -  Vice-President, Liga ng mga Barangay

ABSENT:

 None.  

RESOLUTION NO. 158

(Series of 2013)

A RESOLUTION AFFIRMING THE INTEREST OF OLONGAPO CITY TO APPLY, NEGOTIATE AND BORROW FUNDS FROM THE MUNICIPAL DEVELOPMENT FUND OFFICE (MDFO) OF THE DEPARTMENT OF FINANCE (DOF) FOR THE IMPLEMENTATION OF THE FERRY RE-DEVELOPMENT OF THE OLONGAPO-SUBIC BAY DRAINAGE CHANNEL PROJECT”

WHEREAS,     the dredging and desilting of rivers are indispensable preliminaries in keeping waterways navigable, significant to the ferry- redevelopment of the Olongapo-Subic Bay channel as well as in the flood control projects of the City. The said priority projects  of  the City, amounting to more or less  Forty-Eight Million Pesos (PhP48,000,000.00)  are listed  in its Annual Investment Program for 2014;

WHEREAS, such activities require the use and availment of heavy equipment such as dredgers, backhoes, excavators and the like;

WHEREAS, it is deemed that the purchase of equipment for the said activities will translate to the greater benefit of the  Olongapo constituents;

WHEREAS, however, due to financial constraint to finance  the said desilting and dredging activities for the said re-development of river channels, Olongapo City opted to avail of a credit facility for its implementation;

WHEREAS, the Local Government Code of 1991 empowers the local government units to create indebtedness, and avail of credit facilities to finance local infrastructure and other socio-economic development projects in accordance with the approved local development plan and public investment program;

WHEREAS, the Municipal Development Fund Office (MDFO), an attached agency of the Department of Finance, provides financing assistance to Local Government Units (LGUs);

WHEREAS, the City Government of Olongapo would like to access the credit financing offered by the MDFO, and  expresses its intent to comply to the financing terms and conditions set forth by the same;

NOW, THEREFORE, on motion of  City Councilor Benjamin G. Cajudo II, 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 affirm, as it hereby affirms the interest of Olongapo City to apply, negotiate and borrow funds from the Municipal Development Fund Office (MDFO) of the Department of Finance (DOF) for the implementation of the Ferry Re-Development of the Olongapo-Subic Bay Drainage Channel Project.

RESOLVED FURTHER, AS IT IS HEREBY FURTHER RESOLVED, that the City Government of Olongapo hereby commits to undertake the necessary acts for the implementation of the Project, as follows:

a.      Create a Project Implementation Unit (PIU) by providing adequate number of technical and support staff, office space and all necessary facilities and assistance for the effective and efficient management of the Project;

b.      Provide the LGU equity for the Project, when necessary;

c.      Appropriate the total project costs composed of loan proceeds, equity and grant (if applicable)

d.      Appropriate funds for the amortization of loan until fully paid. The funds appropriated shall include the cost of insurance and all operation and maintenance expenses of the Project;

e.      Conduct public hearings and consultations, enact ordinances authorizing the collection of fees, charges and other impositions and carry out necessary measures in support of viability and sustainability of the Project;

f.       Authorize the MDFO to deduct from the LGU’s Internal Revenue Allotment (IRA) the amount due to MDFO in connection with the Project under the following cases : (i) default in the payment of principal amortization including interests and penalties; or (ii) any unliquidated financial obligations. The right of MDFO to deduct on the LGU’s IRA shall be without prejudice to any other remedies available under Philippine law;

g.      To appropriate LGU funds to defray expenses incurred by MDFO during appraisal which include administrative/travel expenses settled between the parties in case the LGU would withdraw, cancel or postpone the application.

RESOLVED FURTHERMORE, AS IT IS HEREBY FURTHERMORE RESOLVED, to

a.      Authorize and empower the incumbent local chief executive, Honorable Rolen C. Paulino, City Mayor, Olongapo City and his successor, for and in behalf of the City Government of Olongapo to:

i.         Apply, negotiate and enter into a loan agreement with the MDFO and with partner agency/agencies, when necessary, and execute deeds and to do all acts necessary and proper under the premises for the effective and efficient implementation of the Project;

ii.          Enter into agreements with qualified  private individuals or corporations, after public bidding, to execute the above-mentioned project; and

iii.              Together with the Local Treasurer, to open a separate bank account to facilitate the transfer of funds due to MDFO as payment for principal amortizations, interests and any other amount owing to MDFO by Olongapo City in connection with the project;

RESOLVED FINALLY, AS IT IS HEREBY FINALLY RESOLVED, within a reasonable time from its adoption, to furnish the MDFO with a copy of this Resolution.

APPROVED, December 18, 2013