Mandaue council appropriates P11M for vehicle rent, upkeep

The Mandaue City council has appropriated P10.5 million for the rental of vehicles as well as for the repair and maintenance of city-owned buses that would be at the beck and call of the delegates to the ASEAN Summit this December.

The ordinance states that the P10.5 million shall be taken from the Tax and Public Information Texting System Account under the non-office account.

The P7.5 million would be paid to RDAK Transport Equipment Inc.

RDAK had written Mayor Thadeo Ouano about the city's outstanding obligation.

The city government has rented RDAK's 26 vehicles amounting to P13 million for one year. However, there was no budget allocated for this when the contract between the two was approved.

The members of the city council approved the contract of lease agreement between the city government and RDAK early this year.

Under the agreement, eight Nissan Terranos, two Elf Meat Van engine, one Suzuki 2WD 6-valve dog pound, and 15 Multicabs will be leased starting January 1 to December 31, 2006.

The eight Nissan Terranos are being used as mobile vehicles for the Mandaue City Police Office while the 15 Multicabs are used by the city's barangays.

Under the agreement, RDDAK agreed that in case of breakdowns, it would be ready with replacements. In the event that there are no back-up vehicle available, the number of hours during which the vehicle was not utilized shall be compensated by deducting the corresponding rental amount for the month.

It is also stipulated under the agreement that the utilization of the vehicles shall be the sole discretion of the city, in pursuance of its functions as an LGU.

However, RDAK shall be responsible for the maintenance of the vehicles, and shall guarantee that each vehicle is in good running condition at the time of the use.

RDAK also agreed to provide passenger liability insurance and uniforms for the drivers while the city shall take charge of the fuel and the designation of the filling station. - Mitchelle L. Palaubsanon