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TO END the animosity between the Cebu City Government and the Metropolitan Cebu Water District (MCWD) over the controversial City Hall Satellite Office at the water district’s property, a compromise and lease deal was signed on Monday, November 25, 2024.
Cebu City Mayor Raymond Alvin Garcia and MCWD General Manager Edgar Donoso sealed the compromise and lease term agreement, allowing the City Hall to continue using the water district’s annex building at the back of its headquarters and across the city hall for another year at an agreed rental rate.
The deal also set aside the previous agreement between both government agencies regarding the City Hall’s unpaid rentals, due to different offers, since its occupation a few years ago.
The Cebu City Government will pay MCWD a monthly rent of P419,067.03 for the use of the second floor of the annex building, covering at least 2,001 square meters, as a satellite office.
This came after both parties compromised on their differences and disagreements regarding the lease rate, including MCWD’s offer of a P700,000 monthly lease, compared to the City’s counterproposal of P200,000.
The rental rate was also set at P186.99 per square meter, in compliance with COA’s Circular No. 88-282A or the Uniform Standards/Guidelines to Determine Reasonableness of the Terms and Rental Rates of Lease Contracts for Private of Government Building/Space.
COA earlier 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 City Hall must pay two months’ rent from November to December 2024 (P838,134.16), plus one month’s advance rental (P419,067.03) and a two-month security deposit (P838,134.16), for a total payment of P2,095,335.15 to MCWD. (EHP)