ORDINANCE NO: 2017-393 (Co-Sponsors: Committee on Finance and Appropriations; Committee on Ways and Means; Committee on Laws, Rules, and Policy Formulation; Committee on Planning and Landed Estates; and Committee on Infrastructure, Public Bidding and Community Development "AN ORDINANCE AUTHORIZING THE BORROWING OF THE CITY OF PAGADIAN, PROVINCE OF ZAMBOANGA DEL SUR WITH THE DEVELOPMENT BANK OF THE PHILIPPINES (DBP) IN THE TOTAL PRINCIPAL AMOUNT OF FOUR HUNDRED MILLION & 00/100 PESOS ONLY (P400,000,000.00) FOR THE PURPOSES STATED HEREIN" Be it ordained by the Sangguniang Panlungsod (12th City Council) of City of Pagadian, in session assembled that: SECTION 1. The City Mayor, HON. ROMEO P. PULMONES, in representation of the City of Pagadian, hereinafter referred to as the "City" is hereby authorized to enter into loan agreement with the Development Bank of the Philippines (DBP) in accordance with Section 297 of Republic Act No. 7160 or the Local Government Code, in the total amount of Four Hundred Million Pesos (P400,000,000.00), under the terms and condition herein set forth and such other terms and conditions as may be agreed upon with any person, corporation or entity for the purpose of funding priority projects and subject to the requirements under Section 123 of Republic Act No. 7653 as implemented by the Bangko Sentral ng Pilipinas Circular No. 402. In this connection, the City Mayor shall have the power and authority to represent the City in negotiating the terms and contract, deed, papers, and documents as may be necessary and proper for the full and total implementation of the authority herein granted. SECTION 2. The said priority projects herein specified are hereby certified to be local infrastructure and socio-economic development projects in accordance with the approved local development plan and public investment program for the period years 2017 to 2018 of the City of Pagadian which is also hereby approved by the Sangguniang Panlungsod through Resolution No. 2016-0176. SECTION 3. Consistent with salient features of the proposed borrowing as indicated in the letter offer presented by the Development Bank of the Philippines, the features, terms and conditions shall be as follow and are hereby approved: 3.1. Project Name: Development of the President Corazon C. Aquino Regional Center Site Borrower: Pagadian City, Zamboanga del Sur Amount: Seventy Million (P70,000,000.00) Pesos Term: Fifteen (15) years, inclusive of one (1) year grace period. Manner of Payment: Principal payable in One Hundred Sixty-Eight (168) equal monthly amortizations commencing at the end of the 13th month from date of initial drawdown. Interest: Fixed for one (1) year, based on prevailing rate at drawdown date, payable monthly commencing at the end of the 1st month from date of initial drawdown. Interest shall be reviewed at the end of one (1) year and annually thereafter based on the Lender's prevailing rate. 3.2. Project Name: Acquisition of various heavy equipment units and service vehicle, as follows: a) One (1) unit grader; b) One (1) unit bulldozer; c) One (1) unit backhoe; d) One (1) unit wheeled excavator; e) One (1) unit vibrator; and f) Five (5) units dump truck Borrower: Pagadian City, Zamboanga del Sur Amount: One Hundred Twenty Million (P120,000,000.00) Pesos Term: Ten (10) years Manner of Payment: Principal payable in One Hundred Twenty (120) equal monthly amortizations commencing at the end of the 1st month from date of initial drawdown. Interest: Fixed for one (1) year, based on prevailing rate at drawdown date, payable monthly commencing at the end of the 1st month from date of initial drawdown. Interest shall be reviewed at the end of one (1) year and annually thereafter based on the Lender's prevailing rate. 3.3. Project Name: Road widening with drainage and sidewalk from J. Zulueta Street fronting Anastacia Pensionne to the Provincial Center Borrower: Pagadian City, Zamboanga del Sur Amount: Sixty Million (P60,000,000.00) Pesos Term: Fifteen (15) years, inclusive of one (1) year grace period. Manner of Payment: Principal payable in one hundred sixty-eight (168) equal monthly amortizations commencing at the end of the 13th month from date of initial drawdown. Interest: Fixed for one (1) year, based on prevailing rate at drawdown date, payable monthly commencing at the end of the 1st month from date of initial drawdown. Interest shall be reviewed at the end of one (1) year and annually thereafter based on the Lender's prevailing rate. 3.4. Project Name: Improvement of the Boulevard's Sports Complex at Barangay Sta. Lucia, Pagadian City Borrower: Pagadian City, Zamboanga del Sur Amount: One Hundred Fifty Million (P150,000,000.00) Pesos Term: Fifteen (15) years, inclusive of one (1) year grace period. Manner of Payment: Principal payable in One Hundred Sixty-Eight (168) equal monthly amortizations commencing at the end of the 13th month from date of initial drawdown. Interest: Fixed for one (1) year, based on prevailing rate at drawdown date, payable monthly commencing at the end of the 1st month from date of initial drawdown. Interest shall be reviewed at the end of one (1) year and annually thereafter based on the Lender's prevailing rate. 3.5. Collateral/ Guarantee/Security: a) Deed of Continuing Assignment to DBP of the LGU's Internal Revenue Allotment (IRA) and other revenues equivalent to loan amount with hold-out on deposit equivalent to one (1) monthly loan amortization until the loans are fully paid. b) CAR insurance coverage shall be obtained prior to initial release of the loan based on estimated cost of the project when constructed. After the completion of the project, appropriate insurance coverage based on Appraised Value shall be placed through DBP's appointed broker and the policy shall be endorsed in favor of DBP including all other insurable mortgaged properties. c) On the heavy equipment acquisition, applicable insurance coverage on all insurable assets based on sound value shall be placed by DBP with GSIS and the policy shall be endorsed in favor of DBP. 3.6. Fees: Front-end Fee: Waived Commitment Fee: Waived Pre-Payment Penalty: Three (3%) Percent of the amount. Extension Fee: Waived Default Charge: Five (5%) Percent per annum SECTION 4. The City hereby appropriates the entire proceeds of the borrowing exclusively to finance the development of the Pres. Corazon c. Aquino Regional Center Site; acquisition of various brand new heavy equipment; road widening with drainage and sidewalk from J. Zulueta Street fronting Anastacia Pensionne to the Provincial Center; improvement of Boulevard's Sports Complex at Barangay Sta. Lucia and other financial obligations relative thereto. SECTION 5. The City hereby grants its City Mayor authority to execute a letter waiving our rights to confidentiality of information by authorizing DBP, our trustee bank and all banks or financial institutions with which we have transactions to disclose to the Bangko Sentral ng Pilipinas (BSP) all information pertaining to the deposits, investments, loans, or other transactions including the history or status of our dealings with said banks or financial institutions and for the BSP to make all inquiries as may be necessary regarding the same. FURTHERMORE, the BSP is likewise authorized to disclose and share any such information furnished or obtained from said banks of financial institutions to the Department of Finance in relation to the performance by said Department of its function. SECTION 6. Any Ordinance or parts thereof inconsistent with this enactment is hereby repealed or amended accordingly. SECTION 7. This ordinance shall take effect upon its publication and compliance with all procedures required under Republic Act No. 7160 of an ordinance for its validity, including the affixation of signatures of the Sangguniang Panlungsod Members, in concurrence thereto, composing at least a majority thereof out of the total members, on all pages of this Ordinance, SECTION 8. Copies of this Ordinance be furnished to the Honorable Mayor, the City Accountant, the City Auditor, and the Bangko Sentral ng Pilipinas for their information and appropriate action. ENACTED AND APPROVED by the 12th City Council of Pagadian City during its 63rd Regular Session held on 28 November 2017 at the Sangguniang Panlungsod Session Hall, Pagadian City.