BAGUIO CITY – The Baguio City Council continues to question the legality of the collection of rental fees or environmental use of area (EUA) fees from concessionaires within Wright Park.
During the regular session on April 15, 2024, Councilor Betty Lourdes Tabanda raised concerns about the lack of a clear legal basis for collecting P150.00 per square meter per month from stall owners.
She referenced Baguio City Market Authority (BCMA) Resolution 2-2015 and Section 31 of the Environmental Code, indicating that these may not provide a sufficient legal basis for the fee collection.
She also pointed out inconsistencies in certifications issued to businesses operating in the park, specifically highlighting differences in the amount stated in certifications.
For example, some certifications mention P150.00 while others do not, creating confusion about the actual legal basis for the fee.
Tabanda stressed the importance of having a clear legal and procedural framework for the fee collection to ensure fairness, transparency, and adherence to legal standards.
City Treasurer Alex Cabarrubias explained that the basis for the fee collection was a contract between leaseholders and the City Environments and Parks management Office (CEPMO), although specific details about the contractā€™s contents are unclear.Ā
The city council members reiterated that fees could only be imposed through a legislative action by the council.
City Legal Officer Althea Alberto suggested that the city council consider and explore previous contracts that it had confirmed which could be used as legal bases for the collection, pending the passage of an ordinance regarding fees.
Alberto also cited Joint Memorandum Circular No. 19-01 issued by the Department of the Interior and Local Government (DILG) and the Department of Finance(DOF) which provides guidelines for determining reasonable rates and fees, proposing to use this framework in drafting the ordinance.
Concerned with the lack of a clear legal basis for collecting fees, Councilor Benny Bomogao said the ordinance to be crafted to legitimize the fee collection should be prospective in nature, meaning it should apply to future transactions rather than retroactively affecting past ones.
Vice Mayor Faustino Olowan said once the ordinance is drafted by the City Legal Office and the Local Finance Committee, it could be reviewed and approved by the city council in the future.
In light of the discussion, the city council approved a resolution proposing that the Permits and Licensing Division be allowed to issue business permits to those affected Wright Park concessionaires so they could start operating legally and without further delay.
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