The special session was to discuss the Magsaysay Park Bidding among other things, Authorizing the Mayor to enter into contract with the winning bidder.

In a twist of event, Councilor Guadiz who was vehemently objecting to the manner of the bidding and award to Metrostate in the previous sessions of the Sanggunian became the lead man in defending Metrostate as the winning bidder of the Magsaysay Park BOT project.

Councilor Guadiz stated that the Mayor got its cue from the Sanggunian when the Sanggunian pinpointed the Magsaysay Park as a Tourism Park. It also got its cue when the Sanggunian made a resolution adopting the Magsaysay Redevelopment Plan. Hence, the mayor decided to bid out a BOT.

S&F and LXS joint venture bided for the Magsaysay Park BOT. It was pre qualified, qualified and participated in the bidding.

As to the question ” if Metrostate is a qualified winner” in the bidding, Councilor Guadiz stated that Metrostate is a recipient of the rights of S&F and LXS its parents when they issued a deed of undertaking transferring their rights to Metrostate.

Councilor Guadiz argues that Metrostate is the winning bidder and is qualified financially because it has a credit line of 8million pesos enough to back up the minimum requirement of 10% of the 84million peso BOT project and has a paid up capital of 100,000pesos. Councilor Guadiz also maintained that although Metrostate is a new corporation it will back up the requirement of Track Record and Experience as mandated in RA7718 by hiring a contractor with Track Record and Experience.

As to public consultation to support public acceptability, Councilor Guadiz maintains that the approval of the City Development Council of the plan is enough to cover the public consultation as basis for Public Acceptability since the members are barangay captains and representatives of NGOs.

As to the provision of Section 302 of the Local Government Code which states that it shall be the City Engineer upon written request of the mayor who shall prepare the minimum requirement of the plan, Councilor Guadiz claims that the project is now a Design Build Operate Transfer project therefore it should be the proponent who should make the design and plan of the project and does not need the city engineer to prepare the minimum technical requirement on this matter.

As to the matter of the sanggunian approving the BOT contract before it is bided out to the public as per the IRR of RA7718 which transfers the function of the ICC( for National Projects) to the Local Sanggunian (for LGU projects), Atty Geraldine Baniqued stated that the Sanggunian is only to authorize the contract of the BOT after the bidding and that There Is No Need for the Sanggunian to approve of the contract prior to bidding. Atty Baniqued also stated that it was Atty Roy Laforteza who made the contract.

Atty Baniqued also maintained that the Bidding is for a structure that is not considered a public utility as per public SERVICE law. She stated that the project is for a structure with recreational facilities. The presiding officer however stated that in the plan submitted the Sanggunian on November 27, 2006 after the bidding, the plan only showed a structure that shall be used as an economic enterprise by the leasing out of 18 rooms for food establishments. As per the Technical Plan, while it is true that the structure will only occupy 50% of the lot, the remaining 50% will be used as right of way driveway on the left and right and parking lot for 16vehicles at the back and another 15% space to be used for the center of the structure probably for tables and chairs of these food establishments.

During the ammendment of the resolution, Councilors Farah Decano and Joey Tamayo introduced amendments by deletion, deleting the provision of pinpointing METROSTATE as the winning bidder of the BOT stating that the resolution is only for the authorization to enter into a contract with the winning bidder subject to government rules and accounting procedures. This was objected to by Councilor Guadiz and 7 other councilors. Another amendment was introduced by Councilor Decano and Councilor Tamayo by insertion stating “Whereas the winning bidder must have participated in the prequalification, qualification and bidding process as per the requirement of Law.” This was vehemently opposed by councilor Guadiz supported by 7 other councilors. The presiding officer asked Guadiz on the reason for his objection stating that as per his committee report, Guadiz defended Metrostate as the winner since it assumed all the rights thru subrogation from S&F and LXS. Is it safe to state that a winning bidder need not participate in the prequalification, qualification and bidding process by rejecting the provision that a “winning bidder must have participated in the prequalification, qualification and bidding process”? Councilor Guadiz did not want to give any reason and insisted that said amendment be voted upon. Guadiz, supported by 7 other councilors OBJECTED to this amendment which only clarified that the Law on public bidding be implemented.

Councilor Guadiz, however, introduced an amendment by insertion on providing that in the contract of the winning bidder, a minimum of 12% and maximum of 18% shall be the rate of return on investment of the BOT operator.

In the manner of the PCAB (Philippine Contractors Accreditation Board) License requirement, Councilor Guadiz stated that the city has a right to add additional requirement in the bidding. Gamma was disqualified because of the city’s requirement for a PCAB license. Metrostate, however, is not required to have a PCAB license since it shall be hiring a contractor with a PCAB license commensurate to the structure to be built.

In the manner of the RDC EXCOM Resolution 66 issued on November28, 2006 after the bidding. The presiding officer called the secretariat of RDC and requested for the Minutes of the RDC EXCOM meeting, secretariat replied that they do not have the minutes of the meeting of the RDC EXCOM for Resolution 66 because it was only the secretariat who prepared this as Mr. Raffy Baraan requested for it. The secretariat said that it was standard operating procedure for the secretariat to prepare such resolutions so as not to delay any project but maintained that it shall later be ratified by the EXCOM once it shall be convened. The Regional Development Council en banc will then also ratify what was passed by the EXCOM once it shall convene itself. As per verbal clarification of RDC Secretariat, it was only the secretariat of EXCOM that prepared Resolution 66. The presiding officer gave copies of the letter of the RDC secretariat dated December14 to all SP Members explaining what happened to Resolution 66. Councilor Guadiz maintained that the SP received Resolution 66 of RDC EXCOM on November 28 and must treat it as it is, an EXCOM resolution.

RDC Resolution is a main requirement prior to bidding of BOT projects amounting to more than 50million pesos.

The presiding officer reminded the members of the Sanggunian that there is no SP opposition in the project and the intention of the project. The main issue of the discussion and decision to be made is the manner on how the bidding was conducted. The procedural lapses and loopholes are very clear in how the Magsaysay Park was bided out. The presiding officer continued to state, that even in the matter of the resolution to be passed regarding the Authorization, Councilor Tamayo noticed a switching in the middle of the second reading which was concurred by Councilor Nick Aquino, the original author when he stated that it is not the title of his resolution and could be verified in the logbook of the Sanggunian.
Majority insisted that the voting was already in order.

The chair reminded the body of its responsibility in complying with the law.

The manner of Voting.

Councilor Michael Fernandez NO
Councilor Farah Decano NO
Councilor Dada Reyna YES
Councilor Jojo Guadiz YES
Councilor Vlad Mata YES
Councilor Chito Samson YES
Councilor Pakoy Torio YES
Councilor Joey Tamayo NO
Councilor Alex De Venecia ABSENT
Councilor Nick Aquino YES
Councilor Eric Munoz YES
Councilor Charise Perez YES

With 8 votes in the affirmative and 3 votes in the negative, the Resolution authorizing the mayor to enter into contract with the winning bidder that pinpointed METROSTATE was approved by the council.

It could be noticed that the SP Members who opposed the resolution, Councilors Joey Tamayo and Councilor Farah Decano are both lawyers. Councilor Michael Fernandez is a graduating Law Student.

The committee report was passed by the body on the condition that it shall include the actual transcript of the discussion of the Sanggunian during its deliberation as basis for the resolution.