Ben Madilynn
THE Cebu City government and the Metropolitan Cebu Water District (MCWD) is working on a leasing agreement for the MCWD-owned building that is currently being used as a satellite office by the City government.
In a press conference on Tuesday, Aug. 27, 2024, Cebu City Acting Mayor Raymond Alvin Garcia said the City is exploring the possibility of having the MCWD waive the rental fees for the City Hall’s use of the satellite office in 2023.
Additionally, the City hopes to negotiate a compromise regarding the expenses incurred for improvements made to the office.
Garcia said he has reviewed the draft contract with the City Administrator and the City Legal Office.
The MCWD board, however, has yet to approve the draft contract. Garcia said he will await their response so he can get the authority of the city council to sign the contract.
In a separate interview, MCWD Board of Directors Chairman Jose Daluz III said he personally agrees with Garcia’s notion.
Daluz, in a phone interview on Friday, Aug. 30, said the waiving of the rental fees for the City Hall’s use of the satellite office in 2023 was one of the terms that the MCWD Board had discussed in one of its meetings.
When asked how long the City Hall is granted to lease out the building of MCWD, Daluz said that they agreed for one year, starting from July of 2024 up to July of next year.
In a previous SunStar report, the Commission on Audit, in its 2023 Audit report, flagged the City’s P5.3 million expenditure on repairs for the satellite office, noting the absence of a formal lease agreement with MCWD.
The MCWD-owned building is located on M.C. Briones St. and is within walking distance from City Hall.
The satellite office opened last July 2023. It houses a number of city departments which include the Division of the Welfare of the Urban Poor and the City Environment and Natural Resources Office, which has been operating without a contract because of the disagreements over monthly rental rates.
The City reportedly proposed P200,000 per month, while MCWD countered with P700,000.
COA recommended that City Hall initiate a dialogue with MCWD to settle the disagreements over the monthly rental rate.
It also urged both parties to base the monthly rental rate on the formula stipulated in the Government Procurement Reform Act. / JPS
