Dumaguete council to decide; Buy CCTVs at P70M or lease at P7M yearly

CEBU, Philippines - The Dumaguete City Council is now debating on the acquisition of 336 units of CCTV camera to cover the entire city: Outright purchase amounting to P70 million or outright lease of P7 million annually.

The Council has been deliberating on the issue after Mayor Felipe Remollo requested the masteral students of the College of Business Administration of Silliman University—headed by their professor, lawyer Gloria Futalan, to conduct a feasibility study on which of the two choices is more beneficial to the city government.

Remollo admitted that the traditional acquisition of such gadgets is done by purchase, but he said his administration found out that there are suppliers who can deliver the same CCTV technology through lease.

Possible lessors are telecommunication companies or cable companies who have already laid down fiber optics in their respective system, said the mayor.

Remollo said that, among the disadvantages of purchase is that technologies like CCTV cameras and computers, are easily outmoded, after five years, which means that the buyer will have to upgrade and acquire new ones.

The original option is to buy outright 336 CCTV cameras, but after five years the city had to appropriate another P70 million in order to continue with an upgraded version, he said.

Remollo had endorsed to the City Council a request from his office to cancel the appropriation of P70 million and reverting the money as unappropriated surplus so that only P7 million will be set aside as annual rental for the CCTV cameras.

The study, conducted by the team of Futalan, showed that the option of straight lease is more beneficial because the supplier has the burden of upgrading the technology with P7 million only as annual rental, meaning that other money can be used for other priority projects of the city.

It also showed that the city, on outright purchase, will be spending more than P200 million after ten years compared to only P70 million over the same period by way of straight lease.

Before the mayor came in, at least four councilors— Agustin Ramon Perdices, Estanislao Alviola, Jose Victor Imbo and Manuel Sagarbarria—had apprehensions whether takers are available if the mode of acquisition is through straight lease considering the meager amount of P7 million annually.

However, with the results of the feasibility study and the enlightenment of the mayor, these councilors said they are supporting the mayor’s proposal.

Remollo clarified he just wanted to spend the city’s resources wisely, with existing fiber optics of telcos and cable companies, after CCTV cameras, it may opt for another project—traffic lights.

“Why spend a big chunk of money for one project when it can use the rest of the appropriation for other projects?,”  Remollo said.

A special session will be conducted today for the approval of the endorsement of the mayor so bidding can already commence. (FREEMAN)