ORDINANCE NO: 2022-518 Sponsored by Honorable Arnold R. Gavenia Co-Sponsored by Honorable Sam Tyra F. Co, Honorable Fernando Y. Pameron, Honorable Priscilla M. Fernandez, Honorable Troy B. Asugas and Honorable Ronald Christopher Glenn L. Ariosa "AN ORDINANCE AUTHORIZING THE CITY MAYOR, HON. SAMUEL S. CO, TO ENTER INTO AND SIGN FOR AND IN BEHALF OF THE CITY GOVERNMENT OF PAGADIAN A TERM LOAN AGREEMENT, DEED OF CONTINUING ASSIGNMENT WITH HOLD-OUT AND DEED OF UNDERTAKING IN THE AMOUNT OF ONE HUNDRED FIFTY MILLION (P150,000,000.000) PESOS WITH THE DEVELOPMENT BANK OF THE PHILIPPINES (DBP), REPRESENTED BY ITS LENDING CENTER ACTING HEAD, SM AL BRAIN C. TENORIO, UNDER THE TERMS AND CONDITIONS STIPULATED HEREIN" WHEREAS, Chapter 3, Article 1, Section 455 (b) (l) (vi) of Republic Act 7160 otherwise known as the Local Government Code of 1991 states that, "the City Mayor, as the Chief Executive of the City Government shall, represent the city in all its business transactions and sign in its behalf all bonds, contracts, and obligation, and such other documents upon authority of the Sangguniang Panlungsod pursuant to law or ordinance;" WHEREAS, Rule X, Article 47 of the Rules and Regulations Implementing the Local Government Code of 1991 states that, "xxx no contract may be entered into by the Local Chief Executive in behalf of the Local Government Unit without prior authorization by the Sanggunian concerned;" WHEREAS, the City Mayor, HON. SAMUEL S. CO, in a letter addressed to this august body, requested that he be authorized in behalf of the City Government of Pagadian to enter into a Term Loan Agreement, Deed of Continuing Assignment and Deed of Undertaking in the amount of ONE HUNDRED FIFTY (P150,000,000.00) PESOS, with the Development Bank of the Philippines (DBP) for the CONSTRUCTION OF PAGADIAN CITY COLISEUM at Barangay Sta. Lucia, Pagadian City. NOW THEREFORE, BE IT ORDAINED BY THE 13TH SANGUNIANG PANLUNGSOD IN A SESSION DULY ASSEMBLED: SECTION 1. The Sangguniang Panlungsod hereby authorized the City Mayor, HONORABLE SAMUEL S. CO, for and in behalf of the City Government of Pagadian, to enter into and sign the LOAN AGREEMENT, DEED OF CONTINUING ASSIGNMENT WITH HOLD-OUT AND DEED OF UNDERTAKING with the Development Bank of the Philippines (DBP) in the total amount of ONE HUNDRED FIFTY MILLION (P150,000,000.000) PESOS, under the terms and conditions 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, subject to the requirements under Section 123 of Republic Act No, 7653 as implemented by the Bangko Sentral ng Pilipinas (BSP) Circular No. 402. In connection with this grant of authority, the City Mayor shall have all the power and authority to sign, for and in behalf of the City Government of Pagadian, all documents, contracts, deeds and papers 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 2022 to 2023 of the City of Pagadian which is also hereby approved by the Sangguniang Panlungsod through Resolution No. 2021-1414. 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 follows and are hereby approved: Amount : One Hundred Fifty Million (P150,000,000.00) Pesos Purpose : To finance the Construction of the Pagadian City Coliseum at Barangay Sta. Lucia, Pagadian City Interest Rate : The interest of the loan shall be fixed for one (1) year based on the Lender's prevailing rate determined at the Date of Advance, plus applicable credit spread per annum, subject to a floor rate of 4.50%. Thereafter, it shall be adjusted by the Lender to such rate as it may determine (the "Determined Interest Rate"), annually, based on the Lender's prevailing rate, plus the applicable credit spread per annum, or remain at the original interest rate if "Determined Interest Rate" shall be lower. Term : Fifteen (15) years, inclusive of Two (2) years grace period. The principal shall be payable in One Hundred Fifty-Six (156) equal monthly payments commencing on the Twenty-fifth (25th) month from the due of the initial drawdown. Mode Of Releases : Multiple drawdowns shall be allowed and releases shall be effected upon perfection of all documentary requirements including the Promissory Note/s and remittance of required fees and taxes. Releases shall be directly credited/released to the deposit account of the Borrower. Schedule shall be as follows: First release - up to 15% of the winning bid as mobilization fund. Succeeding releases - based on the progress billing/accomplishment report of the contractor and previous releases must have been infused to the project subject to the submission of the following: ((1) Statement of Work Accomplished (SWA) by the contractor and duly accepted by the LGU authorized personnel and (2) Authority to Continue issued by the City Engineer) SECTION 8. Any Ordinance or parts thereof inconsistent with this enactment is hereby repealed or amended accordingly. SECTION 9. 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, ENACTED AND APPROVED by the Sangguniang Panlungsod (13th City Council) during its 134th Regular Session on 29 June 2022 at the SP Session Hall, 4th Floor City Commercial Center (C3), Santiago District, Pagadian City.