City Hall, MCWD agree on joint use of building

MANILA, Philippines —  After being the subject of dispute and legal battles, the Cebu City Government has officially sealed the lease and compromise agreement with the Metro Cebu Water District (MCWD) to jointly use the latter’s satellite office.

The agreement also waives the unpaid rent fees of the Cebu City Government as well as the cost of the renovations done inside, which is also the annex building of MCWD.

Yesterday, the Cebu City Government and the management of MCWD, represented by Mayor Raymond Alvin Garcia and MCWD General Manager Edgar Donoso, respectively, signed both agreements in the presence of the press.

According to Garcia, City Hall was unable to pay the rental fees for the satellite office in the previous year. Among the provisions agreed upon is the waiver of this amount in exchange for keeping the renovations and enhancements to the building as they are.

Previously, the Commission on Audit flagged the city government’s expenditure of ?5 million for the renovation of the American-period building located next to the MCWD main building, citing the lack of a formal lease agreement with MCWD.

"At least naa na g’yuy lease contract and the lease contract is based on COA-approved amount," said Garcia.

With the signing of the agreement, Garcia said they could finally move forward with the city's occupancy of the second floor of the building, while the MCWD management will occupy the ground floor.

The lease contract includes the current year and once it ends in 2025 Garcia said they will renew it annually.

In context, the MCWD annex building, which is being utilized as a satellite office for the Cebu City Hall, was one of the disputed sites between the Cebu City Government under former mayor Michael Rama.

It was reported that the city government, through the Cebu City Legal Office (CLO), responded to MCWD’s ultimatum to vacate their satellite office, claiming that the city government was in “lawful possession of the property,” among other reasons.

In a letter addressed to Donoso dated February 20, 2024, the Cebu City government responded through the CLO, emphasizing that they will not be heeding MCWD’s demands.

In a document, it was indicated that MCWD gave a final notice on January 22, 2024, which was received by the City Administrator's Office.

Garcia refrained from discussing the matter further, saying both sides had battled it out in court. During the signing, however, he said this was a reflection that diplomacy works, leading to an agreement between the two parties.

"I hope this ends all animosities between MCWD and Cebu City regarding the lease of that particular building," said Garcia.

The signed contract stipulates an agreement to lease 2,001 square meters of the building, which encompasses the second-floor area, including the canopy, balcony, and stairs leading to the second floor.

It will have a term of one year, effective from the date of signing. The Cebu City Government has agreed to pay the rental fee to MCWD on or before the 25th day of every month, amounting to ?419,067.03 per month.

Currently, the MCWD annex office, located just across the City Hall Building, houses at least 11 offices including the Task Force Gubat sa Baha, Cebu Agricultural Development, Cebu City Environment and Natural Resources Office, and the office of the city’s broadcasting arm Sugboanon Channel, among others.