2010 R - 10 - APPROVING THE ISSUANCE OF A NOTICE OF AWARD OF THE LONGTERM LEASE OF THE HALFMOON BEACH PROPERTY TO CROWNE ASIA DEVELOPMENT CORPORATION

EXCERPTS FROM THE MINUTES OF THE SPECIAL SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON JANUARY 28, 2010 AT THE CITY HALL.

PRESENT:

Hon. Cynthia G. Cajudo - - City Vice-Mayor & Presiding Officer

Hon. Gina Gulanes-Perez - - - City Councilor

Hon. Rodel S. Cerezo- - - - “ “

Hon. Sarah Lugerna Lipumano-Garcia - “ “

Hon. Edwin J. Piano- - - “ “

Hon. Aquilino Y. Cortez, Jr. - - “ “

Hon. Anselmo A. Aquino- - - - “ “

Hon. Elena C. Dabu- - - - - - - “ “

Hon. Jonathan G. Manalo- - - - - “ “.

Hon. Cheenee F. Hoya - - - SK Federation President

ABSENT:

Hon. John Carlos G. delos Reyes- - - -City Councilor

Hon. Angelito W. Baloy - - - “ “

RESOLUTION NO. 10

(Series of 2010)

A RESOLUTION APPROVING THE ISSUANCE OF A NOTICE OF AWARD OF THE LONG-TERM LEASE OF THE HALFMOON BEACH PROPERTY TO CROWNE ASIA DEVELOPMENT CORPORATION AND REITERATING THE AUTHORITY OF THE CITY MAYOR TO ENTER AND SIGN A CONTRACT OF LEASE PURSUANT THERETO

WHEREAS, the City Government recognizes that there is a need to optimize the utilization of the Halfmoon Beach Property (HALFMOON) for the general welfare, which may be effected through its long-term lease;

WHEREAS, under Sangguniang Panlungsod Resolution No. 177, Series of 2009, the unsolicited proposal of Crowne Asia Development Corporation, where said corporation proposed to convert Halfmoon into a world-class tourism facility to generate livelihood opportunities, stimulate local industries and pump-prime the local economy;

WHEREAS, under Sangguniang Panlungsod Resolution No. 01, Series of 2010, the guidelines, terms of reference and schedule of activities for the competitive challenge mode pertinent to the long-term lease of Halfmoon was duly approved, with the concomitant grant of authority to the City Mayor to enter into and sign a lease agreement relative thereto, subject to pertinent laws and regulations;

WHEREAS, considering that the reglementary period for the competitive challenge had lapsed without any other proponent submitting any counter-proposal, the ensuing legal process is the approval of, and the issuance of a notice of award to, the unchallenged proposal of Crowne Asia, consonant with pertinent laws and ordinances;

NOW, THEREFORE, on motion of City Councilor Edwin J. Piano, 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 Issuance of a Notice of Award of the Long-Term Lease of the Halfmoon Beach Property to Crowne Asia Development Corporation and Reiterating the Authority of the City Mayor to Enter and Sign a Contract of Lease Pursuant Thereto.

APPROVED, January 28, 2010.

CYNTHIA G. CAJUDO

City Vice-Mayor & Presiding Officer

GINA GULANES-PEREZ JOHN CARLOS G. DELOS REYES

City Councilor City Councilor

(Absent)

RODEL S. CEREZO SARAH LUGERNA LIPUMANO-GARCIA

City Councilor City Councilor

(Opposed)

EDWIN J. PIANO ANGELITO W. BALOY

City Councilor City Councilor

(Absent)

AQUILINO Y. CORTEZ, JR. ANSELMO A. AQUINO

City Councilor City Councilor

ELENA C. DABU JONATHAN G. MANALO

City Councilor City Councilor

CHEENEE F. HOYA

SK Federation President

ATTEST:

ELFLIDA S. SALMON

Council Secretary

APPROVED BY HIS HONOR, THE CITY MAYOR ON _____________________.

JAMES GORDON, JR.

City Mayor

ATTEST:

DELFIN A. JUICO, JR.

Secretary to the City Mayor

2010 R - 01 - APPROVING/ADOPTING THE GUIDELINES, TOR AND SCHEDULE OF ACTIVITIES FOR THE COMPETITIVE CHALLENGE MODE PERTINENT TO THE LONG-TERM LEASE

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON JANUARY 06, 2010 AT THE CITY HALL.

PRESENT:

Hon. Gina Gulanes-Perez - - City Councilor & Temporary Presiding Officer

Hon. John Carlos G. delos Reyes- - City Councilor

Hon. Rodel S. Cerezo - - - “ “

Hon. Sarah Lugerna Lipumano-Garcia - “ “

Hon. Edwin J. Piano- - “ “

Hon. Angelito W. Baloy - - - “ “

Hon. Aquilino Y. Cortez, Jr. - - “ “

Hon. Anselmo A. Aquino- - “ “

Hon. Elena C. Dabu- - - - “ “

Hon. Jonathan G. Manalo- - - “ “.

Hon. Cheenee F. Hoya- - - SK Federation President

ABSENT:

Hon. Cynthia G. Cajudo - - City Vice-Mayor & Presiding Officer

(On Leave)

RESOLUTION NO. 01

(Series of 2010)

A RESOLUTION APPROVING/ADOPTING THE GUIDELINES, TERMS OF REFERENCE AND SCHEDULE OF ACTIVITIES FOR THE COMPETITIVE CHALLENGE MODE PERTINENT TO THE LONG-TERM LEASE OF HALF-MOON BEACH AND AUTHORIZING THE HON. CITY MAYOR JAMES GORDON, JR. TO NEGOTIATE, ENTER INTO AND SIGN A LEASE AGREEMENT RELATIVE THERETO, SUBJECT TO PERTINENT LAWS AND REGULATIONS

WHEREAS, pursuant to Sangguniang Panlungsod Resolution No. 177, Series of 2009, the Unsolicited Proposal of Crowne Asia Development Corporation for the long-term lease of Half-Moon Beach (THE PROPERTY) was accepted by the City, subject to the Competitive/Swiss Challenge Mode of Bidding, in compliance with pertinent Commission on Audit rules and regulations;

WHEREAS, the long-term lease is endeavored into in line with the City’s thrust of facilitating the optimum development of the property into a world-class tourism facility geared at generating livelihood opportunities, stimulating local industries, and pump-priming the local economy, while ensuring that the best possible terms shall be secured in line with the best interests of the local community;

WHEREAS, there are pending legal incidents relating to the property involving parties who have come to an agreement that any lease agreement entered into relating to the property shall be without prejudice to the outcome of the same, and that the winning proponent/bidder shall solely assume the legal risks appurtenant thereto, and that any such lease shall be subject to compliance with requirements under pertinent laws, rules and regulations, and official issuances of public authorities;

WHEREAS, to fully protect the people of Olongapo City from potential unscrupulous proponents and possible prejudicial terms, transparency and accountability must be instituted, which could be accomplished by outlining the guidelines, terms of reference, and schedule of activities relating thereto;

WHEREAS, consistent with the foregoing, the City reserves the right to reject the current unsolicited proposal and any other proposal in the event that the same does not prove to be of optimum benefit and advantage to the local community;

NOW, THEREFORE, on motion of City Councilor Edwin J. Piano, 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/Adopt, as it hereby Approves/Adopts the Guidelines, Terms of Reference and Schedule of Activities for the Competitive Challenge Mode Pertinent to the Long-Term Lease of Half-Moon Beach and Authorizing the Hon. City Mayor James Gordon, Jr. to Negotiate, Enter Into and Sign A Lease Agreement Relative Thereto, Subject to Pertinent Laws and Regulations

APPROVED, January 06, 2010

CYNTHIA G. CAJUDO

City Vice-Mayor & Presiding Officer

(On Leave)

GINA GULANES-PEREZ JOHN CARLOS G. DELOS REYES

City Councilor City Councilor

& Temporary Presiding Officer (Opposed)

RODEL S. CEREZO SARAH LUGERNA LIPUMANO-GARCIA

City Councilor City Councilor

(Opposed)

EDWIN J. PIANO ANGELITO W. BALOY

City Councilor City Councilor

(Opposed)

AQUILINO Y. CORTEZ, JR. ANSELMO A. AQUINO

City Councilor City Councilor

ELENA C. DABU JONATHAN G. MANALO

City Councilor City Councilor

CHEENEE F. HOYA

SK Federation President

ATTEST:

ELFLIDA S. SALMON

Council Secretary

APPROVED BY HIS HONOR, THE CITY MAYOR ON _____________________.

JAMES GORDON, JR.

City Mayor

ATTEST:

DELFIN A. JUICO, JR.

Secretary to the City Mayor

2009 R - 177 - ACCEPTING THE PROPOSAL OF CROWNE ASIA DEVELOPMENT CORPORATION AND APPROVING THE COMPETITIVE CHALLENGE PROCEDURE AS A MODE OF AWARDING

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON NOVEMBER 18, 2009 AT THE CITY HALL.

PRESENT:

Hon. Gina Gulanes-Perez - -City Councilor & Temporary Presiding Officer

Hon. John Carlos G. delos Reyes- - City Councilor

Hon. Rodel S. Cerezo- - - - “ “

Hon. Sarah Lugerna Lipumano-Garcia - - “ “

Hon. Edwin J. Piano- - - “ “

Hon. Angelito W. Baloy - - - “ “

Hon. Aquilino Y. Cortez, Jr. - - “ “

Hon. Anselmo A. Aquino- - - “ “

Hon. Elena C. Dabu- - - “ “

Hon. Jonathan G. Manalo- - - “ “.

Hon. Cheenee F. Hoya- - SK Federation President

ABSENT:

Hon. Cynthia G. Cajudo - - - City Vice-Mayor & Presiding Officer

(On Leave)

RESOLUTION NO. 177

(Series of 2009)

A RESOLUTION ACCEPTING THE PROPOSAL OF CROWNE ASIA DEVELOPMENT CORPORATION AND APPROVING THE COMPETITIVE CHALLENGE PROCEDURE AS A MODE OF AWARDING THE JOINT VENTURE RELATIVE THERETO, SUBJECT TO EXISTING AUDITING RULES AND APPLICABLE LEGAL REQUIREMENTS

WHEREAS, in a letter dated 23 September 2009, Crowne Asia Development Corporation (Crowne Asia), through its President, manifested its intent to lease, utilize and develop into a premier tourist destination, a property located within and under the jurisdiction of Olongapo City, otherwise known as Halfmoon Beach (THE PROPERTY);

WHEREAS, in line with its manifested interest to invest in aforesaid property, it submitted an unsolicited proposal, the salient terms of which, among others, included: (a) lease term of twenty-five (25) years, renewable for another twenty-five (25) years to allow full development of the property; (b) payment of lease rentals at the proposed rate in the amount Three Pesos (PHP3.00) per square meter; (c) an advance rental payment of Two Hundred Thousand Pesos (PHP200,000.00); (d) an increasing graduated percentage share of “3% (beginning on the sixth year to tenth year) 5% (beginning on the eleventh to the fifteenth year) and 7%” (beginning on the sixteenth year and thereafter); and (d) a fixed ten percent (10%) share in the revenues generated from any assignment or sublease effected in the property. This aside from the payments of real estate taxes by the proponent Crowne Asia;

WHEREAS, Crowne Asia has obliged itself to undertake the development of the property into a first-class/world class tourist facility in line with the City's socio-economic programs, and in consonance with the City's thrust on tourism for community empowerment;

WHEREAS, any such proposed arrangement shall be effected without prejudice to any pending incidents, concerns, or cases involving the property which may be subject of the proposed arrangement;

WHEREAS, the Competitive/Swiss Challenge Mode is a legally sanctioned mode of bidding, and is defined under Commission on Audit (COA) Decision No. 2009-064 (dated 20 July 2009) where it was held that “the Swiss Challenge proposal approximates the nature and requirements of a public bidding which are essentially transparency and competitiveness”, “it is just a variation of the entire public bidding process”;

WHEREAS, to ensure that the City would secure only the best possible terms from any arrangement involving public interest, the City Mayor must be authorized to form a committee that would formulate the Terms of Reference (TOR) for the long-term lease through the Competitive/Swiss Challenge Mode, pursuant to and consistent with existing auditing rules and legal requirements;

NOW, THEREFORE, on motion of City Councilor Edwin J. Piano, 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 accept, as it hereby accepts, the Proposal Of Crowne Asia Development Corporation And Approving The Competitive Challenge Procedure As A Mode Of Awarding The Joint Venture Relative Thereto, Subject To Existing Auditing Rules And Applicable Legal Requirements.

APPROVED, November 18, 2009.

CYNTHIA G. CAJUDO

City Vice-Mayor & Presiding Officer

(On Leave)

GINA GULANES-PEREZ JOHN CARLOS G. DELOS REYES

City Councilor City Councilor

& Temporary Presiding Officer (Opposed)

RODEL S. CEREZO SARAH LUGERNA LIPUMANO-GARCIA

City Councilor City Councilor

(Opposed)

EDWIN J. PIANO ANGELITO W. BALOY

City Councilor City Councilor

AQUILINO Y. CORTEZ, JR. ANSELMO A. AQUINO

City Councilor City Councilor

ELENA C. DABU JONATHAN G. MANALO

City Councilor City Councilor

CHEENEE F. HOYA

SK Federation President

ATTEST:

ELFLIDA S. SALMON

Council Secretary

APPROVED BY HIS HONOR, THE CITY MAYOR ON _____________________.

JAMES GORDON, JR.

City Mayor

ATTEST:

DELFIN A. JUICO, JR.

Secretary to the City Mayor