THE Cebu City Government is seeking a one-year extension to remain in the building owned by the Metropolitan Cebu Water District (MCWD), as the City has yet to find suitable accommodations for its satellite offices.
Acting Mayor Raymond Alvin Garcia said in press conference on Thursday, July 25, 2024, that the City’s is still negotiating with MCWD.
Garcia reported positive developments in the talks, which aim to resolve issues highlighted in the Commission on Audit’s (COA) 2023 report. The MCWD-owned building is located on M.C. Briones St., and is within walking distance from City Hall.
State auditors 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 satellite office opened last July 2023. It houses several city departments including the Division of the Welfare of the Urban Poor and the City Environment and Natural Resources Office, which has been operating without a contract due to disagreements over monthly rental rates.
The city 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.
Negotiation
After assuming as acting mayor in May this year, Garcia reopened talks with MCWD over various concerns and issues between the City and the water distributor, one of which is the satellite office’s rental.
“My initial discussion with MCWD is that we would like to use the premises for another year because, honestly speaking, I haven’t found a place to move our offices to, and there are more than 10 offices there. Initially, Chairman Daluz agreed to extend it, but he wants it to be with a contract,” Garcia said in a mix of Cebuano and English.
In a separate interview, MCWD Board of Directors Chairman Jose Daluz III confirmed the progress in negotiations, anticipating a contract signing after August, pending legal review and board approval.
Garcia added that the new agreement would include payment for the previous year’s missed rentals, indicating that the City aims to follow the price range set by COA, although specific rates were not disclosed. / EHP