2012 R - 071 - SUPPLEMENTING THE ASSET PURCHASE AGREEMENT BETWEEN THE CITY AND THE PRIVATE SECTOR AS REQUIRED BY THE COMMISSION ON AUDIT AND EXTENDING ITS “SUNSET DATE”, TO ENSURE PROPER AND SUFFICIENT PROVISION FOR THE CITY’S ELECTRICITY NEEDS AND TO ACCOMPLISH THE FULL UPGRADING MODERNIZATION AND ENHANCEMENT OF POWER PUBLIC UTILITY SERVICE, IN A MANNER CONSISTENT WITH LAW

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON JUNE 20, 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 (Sick Leave)

RESOLUTION NO. 71

(Series of 2012)

A RESOLUTION SUPPLEMENTING THE ASSET PURCHASE AGREEMENT BETWEEN THE CITY AND THE PRIVATE SECTOR AS REQUIRED BY THE COMMISSION ON AUDIT AND EXTENDING ITS “SUNSET DATE”, TO ENSURE PROPER AND SUFFICIENT PROVISION FOR THE CITY’S ELECTRICITY NEEDS AND TO ACCOMPLISH THE FULL UPGRADING MODERNIZATION AND ENHANCEMENT OF POWER PUBLIC UTILITY SERVICE, IN A MANNER CONSISTENT WITH LAW

WHEREAS, as per survey by the Public Utilities Department, the city is among the remaining local government units in the country engaged in the operation and maintenance of an electric/power utility, and has among the lowest electricity rates in the region;

WHEREAS, given the recent developments in power utility operations, there is a need to upgrade and modernize the existing ageing power facilities of the city and address the technical needs necessary to provide sufficient electric power supply to the local community, which require substantial capitalization and a vast resource base;

WHEREAS, an Asset-Purchase Agreement (APA) was engaged in by the city and the private sector, in an effort to address the ever growing power needs of the city, which increased electricity consumption needs and the need for enhanced facilities and services is a common and prevalent trend in the country;

WHEREAS, the Commission on Audit has already reviewed the “APA” and has directed the city to supplement the existing “APA” with the provisions in its “audit observations” to ensure the complete legality of the “APA” and its implementation in a manner compliant with pertinent laws, rules and regulations, and to ensure its consonance with the best public interest and public welfare;

WHEREAS, to date, the private sector partner, the Cagayan Electric Power and Light Company, Inc. (CEPALCO) has already infused substantial capital in assisting in the upgrade of sections of the power facilities of the city which is the reason for the current stabilizing power service to the local community;

WHEREAS, there is a need to extend the agreed “sunset” date to December 15, 2013 to allow the Public Utilities Department and the private sector partner ample time to continue and finish the undertaken upgrade, enhancement and modernization of current facilities to provide responsive sufficient supply to the people of Olongapo City;

WHEREAS, to address fears of potential arbitrary, unconscionable, oppressive or baseless price increases in the costs of electric consumption, the city manifests its categorical stance that it shall support any rational and legitimate initiative before the Energy Regulatory Commission to block and combat any such arbitrary, unconscionable, oppressive or baseless price increase in the costs of electric consumption which would be anathema to the best interest and welfare of the community;

WHEREAS, the private sector has headed the demand of the city, and has manifested that it shall follow the process and legal requirements with the Energy Regulatory Commission, with the required consultations with the local community and shall exercise maximum prudence and restaurant in effecting any changes in the current electric service set-up in the event that any agreement with it is perfected and fully consummated;

NOW, THEREFORE, on motion of City Councilor Gina Gulanes-Perez with the majority decision of the Members of the Sangguniang Panlungsod present; 

RESOLVED, AS IT IS HEREBY RESOLVED, by the Sangguniang Panlungosd in session assembled, to supplement as it hereby supplements, the Asset Purchase Agreement between the City and the Private Sector as required by the Commission on Audit and extending its “Sunset Date”, to ensure proper and sufficient provision for the City’s electricity needs and to accomplish the full upgrading modernization and enhancement of Power Public Utility Service, in a manner consistent with Law.

APPROVED, June 20, 2012.

2010 R - 45 - APPROVING THE CAPITAL EXPENDITURE PROGRAM OF THE PUD AND THE FILING OF AN APPLICATION FOR ITS APPROVAL

EXCERPTS FROM THE MINUTES OF THE SPECIAL SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON JUNE 03, 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. Aquilino Y. Cortez, Jr. - - - “ “

Hon. Anselmo A. Aquino - - - “ “

Hon. Elena C. Dabu - - “ “

Hon. Audie S. Sundiam- - - - President, Liga ng mga Barangay

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

ABSENT:

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

Hon. Sarah Lugerna Lipumano-Garcia - “ “

Hon. Edwin J. Piano- - - “ “

(On Official Business)

Hon. Angelito W. Baloy- - - City Councilor

Hon. Jonathan G. Manalo- - “ “

RESOLUTION NO. 45

(Series of 2010)

A RESOLUTION APPROVING THE CAPITAL EXPENDITURE PROGRAM OF THE PUBLIC UTILITIES DEPARTMENT AND THE FILING OF AN APPLICATION FOR ITS APPROVAL WITH THE ENERGY REGULATORY COMMISSION IN CONNECTION WITH THE SALE AND MODERNIZATION OF THE CITY’S ELECTRIC DISTRIBUTION SYSTEM

WHEREAS, the Energy Regulatory Commission, pursuant to the Electric Power Industry Reform Act (EPIRA) and ERC Resolution No. 26, Series of 2009, requires all distribution utilities to submit their capital expenditure programs for the approval of the Commission;

WHEREAS, a capital expenditure program for the PUD has been prepared consistent with the rules of the ERC in connection with the sale and modernization of the City’s electric distribution system;

WHEREAS, under the general terms of the sale, the capital expenditure program will be financed and implemented in phases by the winning bidder or the new owner/operator of the distribution utility;

WHEREAS, to ensure compliance with the applicable rules and regulations of the ERC and the smooth implementation of needed improvements and rehabilitation works on the City’s electric distribution system, there is a need to approve the capital expenditure program and submit an application for its approval to the ERC.

NOW, THEREFORE, on motion of City Councilor Gina G. Perez, co-sponsored by City Councilors Rodel S. Cerezo, Edwin J. Piano, Aquilino Y. Cortez, Jr., Anselmo A. Aquino, Elena C. Dabu, Audie S. Sundiam and Cheenee F. Hoya, with the unanimous accord of the Members of the Sangguniang Panlungsod present,

RESOLVED, AS IT IS HEREBY RESOLVED, by the Sangguniang Panlungsod in session assembled that the capital expenditure program for the Public Utilities Department entitled “Determination of Capital Expenditure Requirement for Olongapo PUD Distribution System” dated 14 August 2009 is hereby approved.

RESOLVED FURTHER, AS IT HEREBY FURTHER RESOLVED, that the City Mayor, through the City Legal Officer, is hereby authorized to prepare and submit an application to the Energy Regulatory Commission seeking the approval of such capital expenditure program.

Let the City Mayor’s indorsement on this matter be made as an integral part of this Resolution.

APPROVED UNANIMOUSLY, June 03, 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

(Absent))

EDWIN J. PIANO ANGELITO W. BALOY

City Councilor City Councilor

(On Official Business) (Absent)

AQUILINO Y. CORTEZ, JR. ANSELMO A. AQUINO

City Councilor City Councilor

ELENA C. DABU JONATHAN G. MANALO

City Councilor City Councilor

(Absent)

AUDIE S. SUNDIAM CHEENEE F. HOYA

President, Liga ng mga Barangay 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 - 126 - APPROVING THE TERMS AND CONDITIONS OF THE SALE AND MODERNIZATION OF THE OLONGAPO CITY ELECTRIC DISTRIBUTION UTILITY SYSTEM

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON SEPTEMBER 9, 2009, AT THE CITY HALL.

PRESENT:

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

Hon. Gina Gulanes-Perez - - - City Councilor

Hon. John Carlos G. Delos Reyes- - - “ “

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. Rodel S. Cerezo - - City Councilor

Hon. Sarah Lugerna Lipumano-Garcia- - - “ “

Hon. Angelito W. Baloy - - - City Councilor

(Vacation Leave)

RESOLUTION NO. 126

(Series of 2009)

A RESOLUTION APPROVING THE TERMS AND CONDITIONS OF THE SALE AND MODERNIZATION OF THE OLONGAPO CITY ELECTRIC DISTRIBUTION UTILITY SYSTEM AND AUTHORIZING THE CITY GOVERNMENT TO CONDUCT THE PUBLIC BIDDING FOR THE SALE OF SUCH ASSETS, AND FOR OTHER PURPOSES

WHEREAS, the City Government has sanctioned the sale and modernization of the City’s electric distribution system currently operated by the Public Utilities Department by mobilizing private sector participation, pursuant to City Ordinance No. 25, Series of 2009;

WHEREAS, in order to conduct a fair, open, transparent and competitive public bidding for the divestment/sale of the City’s electric distribution system and to ensure that the sale of the assets will be advantageous to and will benefit the City, the City Government has to approve the terms and conditions for the divestment/sale of and competitive bidding or public auction for the electric distribution system following the guidelines of the Commission on Audit (COA) and other applicable laws, rules and regulations;

NOW, THEREFORE, on motion of Councilor Jonathan G. Manalo 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, that the terms and conditions of the sale and modernization of Olongapo City’s electric distribution utility system as provided for in the attached Terms of Reference/Bidding Procedures and Term Sheet for the Asset Purchase Agreement be and are hereby approved in principle;

RESOLVED FURTHER, AS IT IS HEREBY FURTHER RESOLVED, that the City be and is hereby authorized to conduct the public bidding for the sale and modernization of the distribution assets and business in accordance with the terms and conditions approved herein and following all applicable laws, rules and regulations;

RESOLVED FINALLY, AS IT IS HEREBY FINALLY RESOLVED, that the final terms and conditions of the Asset Purchase Agreement including all other transaction documents shall be subject to the approval of the City Council.

APPROVED, September 9, 2009.

CYNTHIA G. CAJUDO

City Vice-Mayor & Presiding Officer

GINA GULANES-PEREZ JOHN CARLOS G. DELOS REYES

City Councilor City Councilor

(Opposed)

RODEL S. CEREZO SARAH LUGERNA LIPUMANO-GARCIA

City Councilor City Councilor

(Absent) (Absent)

EDWIN J. PIANO ANGELITO W. BALOY

City Councilor City Councilor

(Vacation Leave)

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 O - 25 - SANCTIONING THE MODERNIZATION AND PROFESSIONALIZATION OF THE PUD THROUGH PRIVATIZATION BY WAY OF PRIVATE SECTOR PARTICIPATION

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON JULY 9, 2009 AT THE CITY HALL.

PRESENT:

Hon. Cynthia G. Cajudo - - City Vice-Mayor & Presiding Officer
Hon. Gina Gulanes-Perez - - - City Councilor
Hon. John Carlos G. Delos Reyes- - “ “
Hon. Rodel S. Cerezo - - - - “ “
Hon. Sarah Lugerna Lipumano-Garcia- - “ “
Hon. Edwin J. Piano - - - - “ “
Hon. Anselmo A. Aquino- - - - “ “
Hon. Elena C. Dabu- - - - - - “ “
Hon. Jonathan G. Manalo- - - “ “
Hon. Cheenee F. Hoya- - - - SK Federation President

ABSENT:

Hon. Angelito W. Baloy - - City Councilor(Sick Leave)
Hon. Aquilino Y. Cortez, Jr.- - - - City Councilor
Hon. Carlito A. Baloy - - - - - President, Liga ng mga Barangay (Sick Leave)

WHEREAS, in the year 2000, there is a recognized public need to rehabilitate, expand and modernize the operations of the City’s Public Utilities Department (PUD), while addressing its fiscal concerns, in order to sufficiently address the growing public demand for reliable and efficient electric services;

WHEREAS, there are standing operative City Council resolutions which mandate the implementation of a rational program for PUD’s modernization through privatization or by way of private sector participation, either through divestment/sale or Build-Operate-Transfer (BOT) arrangements;

WHEREAS, existing and operative City Council resolutions evince that private sector participation to increase the professional operation and to enhance the efficiency of PUD is indispensable and thus, has long been an approved initiative;

WHEREAS, there is a need to take measures to implement the modernization of PUD with private sector participation, with public welfare and protection as the primary guiding principle;

WHEREAS, it shall be insured that all terms and conditions in connection with any modernization and or privatization shall be favourable and beneficial to the City;

NOW, THEREFORE, on motion of Councilor Jonathan G. Manalo, 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 enact the following Ordinance:


ORDINANCE NO. 25
(Series of 2009)

AN ORDINANCE SANCTIONING THE MODERNIZATION AND PROFESSIONALIZATION OF THE PUBLIC UTILITIES DEPARTMENT (PUD) THROUGH PRIVATIZATION BY WAY OF PRIVATE SECTOR PARTICIPATION THROUGH DIVESTMENT/SALE OR BUILD-OPERATE-TRANSFER (BOT) ARRANGEMENTS


SECTION 1. TITLE - This ordinance shall be known as “An Ordinance Sanctioning The Modernization And Professionalization Of The Public Utilities Department (PUD) Through Privatization By Way Of Private Sector Participation Through Divestment/Sale Or Build-Operate- Transfer (BOT) Arrangements.”

SECTION 2. MANNER / MODE OF MODERNIZATION – It shall be ensured that the manner and mode of modernization and professionalization of the Public Utilities Department by way of Private Sector Participation through Divestment/Sale or Build-Operate-Transfer (BOT) shall be effected with due consideration to and in compliance with the pertinent laws, rules and regulations, including but not limited to the Department of Finance (DOF) and the Commission on Audit (COA) issuances.

It shall also be ensured that the terms and conditions for the modernization of the PUD shall first be subject to review and approval of the Legislative Council to ensure that the same, if made, be in the best interests of public welfare.

SECTION 3. EFFECTIVITY - This ordinance shall be effective after due publication on newspaper of general circulation in Olongapo City and posting for a period of fifteen (15) days in at least three (3)conspicuous public places in the City.

APPROVED, July 9, 2009.


CYNTHIA G. CAJUDO
City Vice-Mayor & Presiding Officer

GINA GULANES-PEREZ JOHN CARLOS G. DELOS REYES
City Councilor City Councilor
(Opposed)

RODEL S. CEREZO *SARAH LUGERNA LIPUMANO-GARCIA
City Councilor City Councilor

EDWIN J. PIANO ANGELITO W. BALOY
City Councilor City Councilor
(Sick Leave)

*Out during votation

AQUILINO Y. CORTEZ, JR ANSELMO A. AQUINO
City Councilor City Councilor
(Absent)

ELENA C. DABU JONATHAN G. MANALO
City Councilor City Councilor

CARLITO A. BALOY CHEENEE F. HOYA
President, Liga ng mga Barangay SK Federation President
(Sick Leave)


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