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
Labels: AFFIRMING, Borrow Funds, CAJUDO, Department of Finance, Ferry re-development, Municipal Development Fund Office, Olongapo-Subic Bay Drainage Channel Project
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