2014 R - 149 - STRONGLY OPPOSING THE SUBIC BAY METROPOLITAN AUTHORITY (SBMA) RESOLUTION NO. 14-09-5172 ENTITLED: “APPROVING THE SUBIC BAY WATER REGULATORY BOARD (SBWRB) RESOLUTION NO. 2014-08-194” AND HEREBY REITERATING OLONGAPO CITY COUNCIL RESOLUTION NO. 87 SERIES OF 2014

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, 

HELD ON OCTOBER 08, 2014 

AT THE CITY HALL.

PRESENT:

Hon. Rodel S. Cerezo -  -City Vice-Mayor & Presiding Officer
Hon. Eduardo J. Piano-   City Councilor
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- -  “     “

ABSENT:

Hon. Eyrma Yvette D. Marzan-Estrella- City Councilor
Hon. Aquilino Y. Cortez, Jr.-    “    “
Hon. Randy C. Sionzon-- President, Liga ng mga Barangay (On Official Business)
Hon. Egmidio M. Gonzales, Jr.- - Indigenous Peoples Mandatory Representative (On Official Business)

RESOLUTION NO. 149

(Series of 2014)

A RESOLUTION STRONGLY OPPOSING THE SUBIC BAY METROPOLITAN AUTHORITY (SBMA) RESOLUTION NO. 14-09-5172 ENTITLED: “APPROVING THE SUBIC BAY WATER REGULATORY BOARD (SBWRB) RESOLUTION NO. 2014-08-194” AND HEREBY REITERATING OLONGAPO CITY COUNCIL RESOLUTION NO. 87 SERIES OF 2014

WHEREAS, Subicwater and Sewerage Co. Inc.  is the exclusive water service provider in Olongapo City and Subic Bay Freeport Zone;

WHEREAS, Subicwater and Sewerage Co. Inc. is applying for a 6.58% tariff rate increase to cover their CAPEX requirements;

WHEREAS, the Subic Bay Metropolitan Authority (SBMA) Resolution No. 14-09-5172 approved the Subic Bay Water Regulatory Board (SBWRB) Resolution No. 2014-08-194;

WHEREAS, under the amended franchise agreement, Subicwater shall cover the maintenance and operation of old and new facilities in efficient and safe manner at its own expense;

WHEREAS, Subicwater  shall bear the expense of improving and renovating its existing facilities. That the people of Olongapo considers this proposed tariff increase as unfair and uncalled for – shifting the burden on the consuming public as it is already well-known that Subicwater is an income-generating company and enjoys steady profits;

WHEREAS, with steady price increase of basic commodities and non-declaration of wage increase by the national government, an additional 6.58% water rate increase will surely add burden to our people and will deprive them of their resources/hard-earned income to sustain food, education, health, house-rental requirements, and other day-to-day needs;

WHEREAS, the local government unit is mandated to look into the welfare of its people and the proposed tariff increase will impoverish them even more denying access to clean, potable water;;

NOW, THEREFORE,  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 to oppose, as it hereby opposes the proposed 6.58% water tariff increase of Subicwater and Sewerage Company, Incorporated and strongly urging Subic Bay Water Regulatory Board (SBWRB) and Subic Bay Metropolitan Authority (SBMA) to heed the public outcry against its implementation

Let copies of this resolution be furnished to the Subic Bay Water Regulatory Board (SBWRB), Subic Bay Metropolitan Authority (SBMA), and Subic Water and Sewerage Co. Inc., for their information, guidance, and record.

APPROVED UNANIMOUSLY, October 08, 2014.

2013 R - 18 - AUTHORIZING MAYOR JAMES GORDON, JR. TO ENTER INTO ACCESSION UNDERTAKING IN ACCORDANCE WITH THE ASSET PURCHASE AGREEMENT (APA); RATIFYING CHANGE FROM CAGAYAN ELECTRIC POWER AND LIGHT COMPANY, INC. (CEPALCO) TO OLONGAPO ELECTRICITY DISTRIBUTION COMPANY, INC. (OEDC)

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON FEBRUARY 27, 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. de los 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 City Federation President

Hon. Carlito A. Baloy -  President, Liga ng mga Barangay

ABSENT:

 None.

RESOLUTION NO.  18

(Series of 2013)

A RESOLUTION AUTHORIZING MAYOR JAMES GORDON, JR. TO ENTER INTO ACCESSION UNDERTAKING IN ACCORDANCE WITH THE ASSET PURCHASE AGREEMENT (APA); RATIFYING CHANGE FROM CAGAYAN ELECTRIC POWER AND LIGHT COMPANY, INC. (CEPALCO) TO OLONGAPO ELECTRICITY DISTRIBUTION COMPANY, INC. (OEDC)

WHEREAS, APA was entered into by and between the City Government and CEPALCO by virtue of City Resolution No. 60, Series of 2010;

WHEREAS, APA provides that after signing date, the Original Sponsor CEPALCO will set up a subsidiary or project company that will directly exercise the rights and carry out CEPALCO’s obligations under APA, all parties executing the Accession Undertaking provided under Schedule 12;

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 Panlungsod in session assembled, to authorize as it hereby authorizes the Honorable City Mayor James Gordon, Jr. to enter into  Accession Undertaking in accordance with the Asset Purchase Agreement (APA); ratifying  change from Cagayan Electric Power And Light Company, Inc. (CEPALCO)  to Olongapo Electricity Distribution Company, Inc. (OEDC) for all legal intents in all manners consistent with law.

APPROVED, February 27, 2013. 

2013 R - 17 - REITERATING ALLOCATION OF PAYMENT FOR POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT CORPORATION (PSALM) AND FOR THE PUBLIC UTILITIES DEPARTMENT (PUD) PERSONNEL FROM THE ASSET PURCHASE AGREEMENT (APA) PROCEEDS

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE

SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON

FEBRUARY 27, 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. de los 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 City Federation President

Hon. Carlito A. Baloy - - President, Liga ng mga Barangay

ABSENT:

 None.

RESOLUTION NO.  17

(Series of 2013)

A RESOLUTION REITERATING ALLOCATION OF PAYMENT FOR POWER SECTOR  ASSETS  AND  LIABILITIES  MANAGEMENT  CORPORATION

(PSALM)  AND FOR  THE  PUBLIC  UTILITIES  DEPARTMENT (PUD)

PERSONNEL FROM  THE ASSET PURCHASE AGREEMENT (APA) PROCEEDS

WHEREAS, APA was entered into by and between the City Government and CEPALCO by virtue of City Resolution No. 60, Series of 2010;

WHEREAS, APA and City Resolution No. 60,  Series of 2010 state that portion of the proceeds shall be for payment of National Power Corporation (NAPOCOR) /PSALM and for the compensation of PUD employees subject to official Civil Service Commission approved computation and compensation package;

NOW, THEREFORE, 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, to reiterate, as it  hereby reiterates, allocation of payment for the National Power Corporation (NAPOCOR)/Power Sector Assets and Liabilities Management Corporation (PSALM) and for the Public Utilities Department (PUD) personnel from  the Asset Purchase Agreement (APA) proceeds, in all manners consistent with law.

APPROVED UNANIMOUSLY, February 27, 2013. 

2012 R - 116 - APPROVING THE TERMS OF REFERENCE FOR THE DISPOSITION AND SALE OF THE CITY’S 915,580 OF COMMON “A” SHARES OF STOCK WITH THE SUBIC WATER AND SEWERAGE COMPANY, AUTHORIZING THE IMPLEMENTATION OF SALE AND DISPOSITION BY THE TECHNICAL COMMITTEE / SPECIAL BIDS AND AWARDS COMMITTEE IN COORDINATION WITH THE COMMISSION ON AUDIT AND SUBIC BAY METROPOLITAN AUTHORITY, IN A MANNER CONSISTENT WITH LAW

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON NOVEMBER 21, 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

RESOLUTION NO. 116

(Series of 2012)

A RESOLUTION APPROVING THE TERMS OF REFERENCE FOR THE DISPOSITION AND SALE OF THE CITY’S 915,580 OF COMMON “A” SHARES OF STOCK WITH THE SUBIC WATER AND SEWERAGE COMPANY, AUTHORIZING THE IMPLEMENTATION OF SALE AND DISPOSITION BY THE TECHNICAL COMMITTEE / SPECIAL BIDS AND AWARDS COMMITTEE IN COORDINATION WITH THE COMMISSION ON AUDIT AND SUBIC BAY METROPOLITAN AUTHORITY, IN A MANNER CONSISTENT WITH LAW

WHEREAS, by local legislative fiat, the city formally declared and manifested its intent to serve as a regulator of the Subic Water and Sewerage Company, Inc. (Subic Water) given its primary mandate of protecting the welfare of its local constituency;

WHEREAS, to eliminate the current conflict of interest with the city being a proprietor, co-owner and shareholder of ten percent (10%) of Subic Water receiving profits from charges levied upon the local community while at the same time being a regulator and performing its governmental function opposing the levies of Subic Water which it deems to be without rational basis;

WHEREAS, the technical committee comprised of the city’s Finance Committee, the Office of the City Legal and the City Planning and Development Office met and the Finance Committee outlined the required Terms of Reference for the Sale and Disposition of the city’s shares of stock with the Subic Water;

WHEREAS, the technical committee consulted the Commission on Audit (COA), through the Office of the City Auditor, and secured the commitment of the Commission on Audit that it shall guide the city in all stages of the sale and disposition, and the Commission on Audit directed the attention of the technical committee to Commission on Audit Circular Nos. 89-296, 2011-002 and to Section 444 of Republic Act No. 7160, wherein the Commission on Audit shall subject all processes relating to the disposition to post-audit to determine the city’s compliance with Commission on Audit Circular No. 89-296;

WHEREAS, the technical committee made an initial recommendation and approval of the Terms of Reference with the mandate to always coordinate with the Commission on Audit to ensure the integrity of the sale and disposition processes and to protect the best advantage of the city;

WHEREAS, as per recommendation from the technical committee, the salient Terms of Reference for the sale and disposition of the city’s shares of stock are as follows: (a) the City’s 915,580 Common “A” shares of stock shall be earmarked for the sale of disposition under a public bidding; (b) the price per share is pegged at P230.00 per share of stock which is substantially higher that the valuation set by the Subic Bay Metropolitan Authority and the Subic Water’s official external auditor Punongbayan & Araullo; (c) submission by the bidder of documents specified in the Terms of Reference designated to be the ‘eligibility documents’ the ‘bid tender documents’ and the ‘bid security documents’ which will show its capacity to remit full payment of the winning bid price under the public bidding processes and abide by pertinent legal protocols shall be required; (d) the provisions under Commission on Audit Circular Nos. 89-296, 2011-002 and to Section 224 of Republic Act No. 7160 in relation to Republic Act NO. 9184 shall be faithfully observed; (e) viva voce bidding shall be implemented during the public bidding processes and provisions are provided for evaluation of bids, due diligence, protest, award and execution of contract after payments are remitted; (f) a Special Bids and Awards Committee (SBAC) shall be constituted to act as the technical committee and as the disposal committee as required under Commission on Audit Circular No. 89-296; (g) all processes shall be transparent, with the Commission on Audit participation through coordination, guidance and actual presence during the public bidding shall be followed pursuant to Commission on Audit Circular No. 89-296; and (h) the other details specified under herewith annexed and presented to the City Council “Terms of Reference and Instructions to Bidder for the Sale of the City of Olongapo’s 915,580 Shares of Common “A” Stock in Subic Water and Sewerage Company, Inc. herewith made an integral part of the present legislation by reference;

NOW, THEREFORE, on motion of City Councilor Gina Gulanes-Perez co sponsored by City Councilors Rodel S. Cerezo, Eyrma Yvette Marzan-Estrella, Elena C. Dabu, Eduardo J. Piano and 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 approve as it hereby approves, the Terms of Reference for the Disposition and Sale of the City’s 915,580 of Common “A” Shares of Stock With The Subic Water And Sewerage Company, Authorizing The Implementation Of Sale and Disposition By the Technical Committee/Special Bids and Awards Committee In Coordination With the Commission On Audit and Subic Bay Metropolitan Authority, In a Manner Consistent With Law.

 APPROVED UNANIMOUSLY, November 21, 2012.

2011 R - 013 - EXPRESSING STRONG AND VIGOROUS OBJECTION TO THE ANNUAL WATER TARIFF ADJUSTMENT TO BE IMPLEMENTED BY THE SUBICWATER AND SEWAGE CO. INC.

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON MARCH 16, 2011 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- City Councilor

Hon. Aquilino Y. Cortez, Jr. --City Councilor

Hon. James G. delos Reyes -- City Councilor

Hon. Gina Gulanes-Perez---- City Councilor

Hon. Elena C. Dabu ------ City Councilor

Hon. Eduardo J. Piano --- City Councilor

Hon. Noel Y. Atienza --- City Councilor

Hon. Sarah Lugerna Lipumano-Garcia-- City Councilor

Hon. Carlito A. Baloy --- President, Liga ng mga Barangay

Hon. Dolly Mae M. Ramos -- SK Federation President

ABSENT:

Hon. Edna A. Elane --- City Councilor

RESOLUTION NO. 13

(Series of 2011)

A RESOLUTION EXPRESSING STRONG AND VIGOROUS OBJECTION TO THE ANNUAL WATER TARIFF ADJUSTMENT TO BE IMPLEMENTED BY THE SUBICWATER AND SEWAGE CO. INC. RECOMMENDED BY THE SUBIC BAY WATER REGULATORY BOARD AND APPROVED BY THE SUBIC BAY METROPOLITAN AUTHORITY

WHEREAS, Subicwater and Sewage, Co. Inc. is in charge for the operation, maintenance, supervision of the water supply system for the Freeport and City of Olongapo;

WHEREAS, Subic Bay Water Regulatory Board empowered to receive, hear and approve water tariff adjustment applied for by the Subicwater and Sewage Co. Inc in turn recommended for approval to the Subic Bay Metropolitan Authority;

WHEREAS, Subicwater and Sewage Co. Inc forged a Franchise Agreement with the then Chairman Richard J. Gordon which was thereafter amended which states among others the following relevant provisions thereof:

4(b) SUBICWATER shall exclusively operate and maintain all the Existing and New Facilities in an efficient and safe manner. The peroid for the operation and maintenance by SUBICWATER of existing facilities shall commence from the effective of the rectification of Agreement and continue for the duration of this Agreement. The period for the operation and maintenance by the SUBICWATER of the New Facilities shall commence from the date of completion of each art of the New Facilities and continue for the duration of this Agreement.”

4© The operation and maintenance required by Section 4 (b) of this Agreement shall be carried out by SUBICWATER at its own expense, if SUBICWATER shall fail to operate and/or maintain the Existing and New Facilities as required by Section 4(b), SBMA shall notify SUBICWATER in writing of such failure and that SUBICWATER shall take such immediate action as it is reasonably able to take to commence rectification and shall inform SBMA from time to time of the status of such rectification. If SUBICWATER shall not commence action to remedy such failure within a period of sixty (60) days and to complete such action to a schedule agreed with SBMA, SBMA shall without prejudice to any other rights it may be entitled to carry out the required operation and maintenance work by its own workmen or by other contractors and other charges incurred in connection therewith shall be payable by SUBICWATER. If SBMA carries out such works and charges SUBICWATER accordingly, shall not be considered in breach of this Agreement giving rise to a right of termination.

Copy of the Franchise Agreement is attached herewith as Attachment “A” and made an integral part of the present complaint:

WHEREAS, Subicwater and Sewage Co., Inc. has implemented tariff rate increases 28% on 2003, 15% for 2004 and 9% for 2007 a total of 52.5% tariff rate increase since 2003 approximately amounting amounting to One Hundred Thirty-Five Million Pesos (PhP135,000,000.00);

WHEREAS, the purpose raised by the Subicwater and Sewage Co. Inc for the water tariff increases was for the expansion and improvement of existing facilities;

WHEREAS, during the public hearing on June 14, 2007 held at Rizal Triangle, West Bajac-Bajac, Olongapo City, representative from Subicwater and Sewage Co. Inc expressly mentioned that the 52.5% water tariff increase was sufficient enough to cover any improvements and expansion to be undertaken by the latter;

WHEREAS, on May 19, 2008 defendant Subicwater and Sewage Co. Inc filed a petition for water tariff review and adjustment with Subic Bay Water Regulatory Board proposing a water rate increase as follows:

WHEREAS, however, on account of the pendency of the deliberation of the 2nd amendment of the Franchise Agreement (Attachment “A”), the review supposedly to be made by Subic Bay Water Regulatory Board on the petition of Subicwater and Sewage Co. Inc. was held in abeyance;

WHEREAS, on October 24, 2008 Subicwater and Sewage Co. Inc formally withdrew its Petition Dated May 19, 2008 and instead submitted another petition to set the initial water tariffs with an adjustment of 10.5% in all categories of water rates and an inflation factor of 91.3% for the next two years;

WHEREAS, Subicwater and Sewage Co. Inc. issued a Notice of Public Consultation to be held at Olongapo City Convention Center on November 3 and 5, 2008 both at 2:00 in the afternoon. However, despite the irregularities in the conduct of public hearings Subic Bay Water Regulatory Board recommended for approval the Petition for Water Tariff Adjustment of 6.33% in all categories of the water supply rates. The recommendation for approval of the water tariff adjustment made by the Subic Water Regulatory Board was approved by the Subic Bay Metropolitan Authority.

WHEREAS, Subicwater and Sewage Co. Inc. in clear violation of the Franchise Agreement as stated in the preceding paragraphs made and filed the Petition for water Tariff Adjustment on several occasions and recommended for approval by the Subic Bay Water Regulatory Board had an adverse effect on the consuming public when in fact and in truth the former shall exclusively shoulder the cost of improvements and renovation of existing facilities and to shift the burden on the consuming public;

WHEREAS, water has become one of the basic necessities which the oublic should not be deprived access thereof;

WHEREAS, the consuming public has experienced the worst economic burden who cannot afford to pay high cost for their basic needs;

WHEREAS, as part of Local Government Unit who is supposed to address the plight of its constituents must take concrete action to eradicate if not reduce the effect of the successive water tariff increases;

NOW THEREFORE, 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, to express, as it hereby expresses strong and vigorous objection to the annual water tariff adjustment to be implemented by the Subic water and Sewage Co. Inc. recommended by the Subic Bay Water Regulatory Board and approved by the Subic Bay Metropolitan Authority.

APPROVED UNANIMOUSLY, March 16, 2011.