THE Cebu City Council’s committee on budget and finance has effectively stalled the proposed P12.5-million lease for the “Mayor of the Night” office space. In a report submitted on Tuesday, Nov. 18, 2025, the committee — chaired by Councilor Dave Tumulak — refused to endorse the contract until the executive branch secures full legal and budgetary compliance. Specifically, the committee warned that proceeding without a multi-year contracting authority (MYCA) could expose the City to “audit disallowances” and financial liability.
THE BACKSTORY. The issue centers on a 34-month lease agreement intended to run from Jan. 1, 2026, to June 30, 2028, the end of the three-year term for elected local officials. The lease would secure office space in Cebu IT Park in Barangay Lahug, to serve as the operational hub for the “Mayor of the Night” program. This initiative was institutionalized by Mayor Nestor Archival through Executive Order 027, Series of 2025, signed last Oct. 23.
Archival’s ally Vice Mayor Tomas Osmeña requested the council’s authorization for the lease on Sept. 26, seeking to establish a one-stop government service center that operates round-the-clock. The goal was to extend City Hall services to residents and night-shift workers who cannot transact during standard business hours. Osmeña is the designated overseer and coordinator of the program.
CONTRASTING VIEWS. The proposal has triggered a clash between the executive department’s vision and legislative caution. Archival defends the project as a “responsive, inclusive, and citizen-centered” necessity rather than a political maneuver. He argues the facility is crucial for the nearly 200,000 workers in Cebu City — particularly in the business process outsourcing (BPO) sector — who keep the local economy running at night. Pushing back against political interpretations, Archival said, “This is not for Tommy or any politician. This is for everyone.”
On the other side, Councilor Pastor “Jun” Alcover Jr. has emerged as a vocal critic, questioning the procedural sequence of the project. Alcover argues that the City is “putting the cart before the horse” by rushing to secure a lease before the City Council has even formally resolved or agreed to the “Mayor of the Night” program itself. He contends that the necessity and legal foundation of the program should be settled before financial commitments are made.
THE LEGAL HURDLE. The delay is rooted in the specific requirements of Republic Act (RA) 12009, also known as the New Government Procurement Act. The budget and finance committee cited Section 9.1.4 of the law’s Implementing Rules and Regulations, which mandates that procuring entities must secure a MYCA before entering into multi-year contracts.
The MYCA is a critical fiscal safeguard. It requires approval from an oversight body and ensures that the total project cost is locked in as the approved budget for the contract (ABC). This process prevents budget overruns and ensures the City actually has the future budget capacity to honor the lease years down the line. The committee’s report was blunt: “No multi-year contract may be executed or considered binding without a valid MYCA.”
A CONFLICTING OPINION. Interestingly, the push for stricter compliance comes despite a favorable view from the City Legal Office. In a recommendation dated Nov. 11, the legal office found the lease to be “valid and in order,” consistent with law, customs and public policy. However, even the legal office suggested including MYCA-related conditions and recommended minor wording adjustments before the contract is signed, acknowledging the need for technical compliance alongside the project’s validity21.
WHAT’S AT STAKE. If the lease is approved, the IT Park facility would house key frontline offices, including the City Treasurer’s Office, Business Permits and Licensing Office, City Health Department and the Civil Registrar. It would also host satellite desks for national agencies such as the Social Security System, Pag-Ibig Fund, Land Transportation Office, Philippine Statistics Authority and the Nationa Bureau of Investigation. For now, the delivery of these nighttime services remains on hold pending the resolution of the
budget dispute.
WHAT’S NEXT. The immediate burden is now on the executive branch. To move forward, they must:
Justify the long-term duration of the lease.
Secure the required MYCA from the Department of Budget and Management guidelines and the appropriate oversight body.
Submit the draft lease contract for a final review by the Cebu City Legal Office.
Only after these steps are completed will the matter return to the City Council for final deliberation. / CAV