Republic of the Philippines

MUNICIPALITY OF BULAKAN
Province of Bulacan

OFFICE OF THE MAYOR

22 March 2021

Atty. GABRIEL A. SILVERA

Provincial Legal Officer
2/F Provincial Capitol Building
City of Malolos, Bulacan

Re: Request for opinion on and review of the draft

usufruct agreement between the Municipal
Government of Bulakan and the Sangguniang
Barangay of Balubad

Dear Provincial Legal Officer Silvera:

Pursuant to Sections 31 and 481(b)(iii) of the Local Government

Code, may I request the Provincial Legal Office to render an opinion on and
to review the proposed agreement between the Municipal Government of
Bulakan and the Sangguniang Barangay of Balubad for the usufruct of a
portion of a property of the Municipal Government for 25 years.1

The property, covered by Transfer Certificate of Title Nos. 262125

and 262126,2 was purchased by the Municipal Government in (year), 3
through former Mayor Anacleto R. Meneses, 4 from Mrs. Dolores Salapong
for Php245,000.00.5 The property was selected by the Committee on
Acquisition of Land for Municipal Motorpool6 as an ideal location for the
motorpool.7 Since its purchase 13 years ago, the property has remained idle.

Seeing the potential of the property to be developed to enable them to

better serve their constituents, the Sangguniang Barangay formally requested
the Municipal Government on 18 December 2020 to use a portion of the
property for the purpose of constructing a new Barangay Hall and Child
Development Center thereon.8 The funding for these infrastructure projects
1
A draft of the Usufruct Agreement is attached for your reference.
2
Copies of TCT Nos. 262125 and 262126 are attached for your reference.
3
A copy of the Deed of Absolute Sale between the Municipal Government of Bulakan and Mrs.
Salapong is attached for your reference.
4
Kapasiyahang Bayan Blg. 82 (2008).
5
Kapasiyahang Bayan Blg. 81 (2008).
6
The Committee was created pursuant to (issuance). It was composed of (Members).
7
Kapasiyahang Bayan Blg. 50 (2008).
8
Kapasiyahang Barangay Blg. 18-2020 (2020).
 2

shall be sourced from the donations made by the San Miguel Corporation in
favor of the Municipal Government. No public funds, therefore, shall be
spent should the proposed Usufruct Agreement be executed and
implemented.

Finding merit in the request, I certified it as urgent and endorsed it to

the Sangguniang Bayan to request their authority to enter into an agreement
— on behalf of the Municipal Government — with the Sangguniang
Barangay for the usufruct of a portion of the property. 9 However, the
Sangguniang Bayan deferred its action on the request and instead sought the
opinion of the Commission on Audit (COA).10

The COA advised the Vice Mayor to instead refer his queries to the
Municipal Legal Office, or in its absence, to the Provincial Legal Office or
the Office of the Provincial Prosecutor.11 Since the Municipal Government
has yet to establish its own legal office, we are respectfully referring this
matter to your good office.

While we understand the apprehensions of the Sangguniang Bayan in

withholding their consent, we think that this endeavour will greatly benefit
not just the residents of Barangay Balubad, but our entire constituency as
well. To my mind, the proposed Usufruct Agreement is proper and there is
no legal impediment to hinder its execution.

The proposal to enter into a Usufruct Agreement with the

Sangguniang Barangay finds support in the General Welfare Clause 12 of the
Local Government Code, in relation Section 18 thereof, which empowers
local government units to “acquire, develop, lease, encumber, alienate, or
otherwise dispose of real or personal property” and “to apply their resources
and assets for productive, developmental, or welfare purposes.”

Indeed, the construction of a new Barangay Hall and a Child

Development Center in the property, which by the way has remained idle
and unutilized since its acquisition, will provide direct benefit and uplift the
welfare of our constituents at the grassroots level as it will enable both the
Municipal Government and Sangguniang Barangay to provide higher quality
of services to them, at absolutely no cost to the Municipal Government. To
be sure, this would save the Municipal Government a substantial amount of
money which can be allocated to our COVID-19 response.

Unfortunately, this noble and commendable efforts spearheaded by

the Sangguniang Barangay of Balubad, through the able leadership of
9
Letter dated 5 January 2021 addressed to Vice Mayor Patrick Neil F. Meneses and the Members of the
Sangguniang Bayan.
10
Letter dated 3 February 2021 of Vice Mayor Meneses addressed to State Auditor Charine Bartolome,
the Audit Team Leader assigned to the Municipal Government; see also, Letter dated 9 February 2021
of State Auditor Bartolome addressed to Vice Mayor Meneses, forwarding his query to the Legal
Office of the COA Regional Office No. III.
11
Letter from Regional Director Ma. Corazon S. Gomez, COA Regional Office No. III.
12
See Section 16 of the Local Government Code.
 3

Chairperson Mario S. Bernardino, cannot come to fruition without the full

participation of the Sangguniang Bayan. That is why we come to you in the
hopes that your legal expertise will allay whatever misgivings the
Sangguniang Bayan has in this proposal. As much as we would like the
Sangguniang Bayan to join us hand in hand in seeing this project to its
completion, we have to respect their sentiments on this proposal.

It is for this reason that we seek your counsel in the hopes that your
expertise in law would provide the much-needed clarification to the
Sangguniang Bayan and convince them to express their full support towards
the joint efforts of the Municipal Government and the Sangguniang
Barangay to make the lives of our constituents more comfortable.

To aid you in your study, we have provided you with all documents
referred to in this communication. Should you require further information,
you may reach us through 792-0745 or at (email).

Very truly yours,

VERGEL C. MENESES
Mayor

Copy furnished:

Hon. PATRICK NEIL F. MENESES

Vice Mayor and Presiding Officer
Sangguniang Bayan
Bulakan, Bulacan

THE HONORABLE MEMBERS

Sangguniang Bayan
Bulakan, Bulacan

Mr. JEFF C. TANSINSIN

Secretary to the Sangguniang Bayan
Bulakan, Bulacan

MARIO S. BERNARDINO
Chairperson
Sangguniang Barangay ng Balubad

THE HONORABLE MEMBERS

Sangguniang Barangay ng Balubad
 USUFRUCT AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Usufruct Agreement is made and entered into on (date), by and

between:

The MUNICIPAL GOVERNMENT OF

BULAKAN, a municipal government duly
organized and existing by virtue of the Local
Government Code, with office address at Camino
Real Street, Barangay San Jose, Bulakan, Bulacan,
represented by Mayor VERGEL C. MENESES,
hereinafter referred to as MUNICIPAL
GOVERNMENT;

-and-

The SANGGUNIANG BARANGAY NG

BALUBAD, a barangay duly organized and
existing by virtue of the Local Government Code,
with office address at Barangay Hall, Barangay
Balubad, Bulakan, Bulacan, represented by
Chairperson MARIO S. BERNARDINO,
hereinafter referred to as SANGGUNIANG
BARANGAY;

WITNESSETH:

WHEREAS, Section 16 of the Local Government Code mandates

local government units “to promote the general welfare of their constituents
x x x x and preserve the comfort and convenience of their inhabitants;”

WHEREAS, in the fulfilment of this mandate, the Municipal

Government purchased a 245 square-meter property in in 2008 to serve as
the site for a Municipal Motorpool, however, the property has remained idle
and unutilized ever since;

WHEREAS, the Sangguniang Barangay, seeing the potential of the

property to be developed to enable them to better serve their constituents,
has requested the Municipal Government to use a portion thereof to
construct a Barangay Hall and a Child Development Center;

WHEREAS, the Municipal Government, in Kapasiyahang Bayan Blg

xx (2021) enacted by the Sangguniang Bayan of Bulakan, has authorized
Mayor Meneses to enter into a Usufruct Agreement with the Sangguniang
Barangay;
 2

WHEREAS, the Sangguniang Barangay, in Kapasiyahang Barangay

Blg. xx-2021, has authorized Chairperson Bernardino to enter into a
Usufruct Agreement with Municipal Government;

NOW, THEREFORE, the foregoing premises considered, the

Municipal Government and the Sangguniang Barangay hereby enter into this
Usufruct Agreement and bind themselves as follows:

1. Term. — The term of the usufruct shall be for twenty-five (25)

years, subject to renewal at the instance of both parties.

2. Obligations of the Parties. — In implementing this Usufruct

Agreement, the parties shall comply with the following terms in good faith:

(a) The Municipal Government shall:

i. Allocate xxx square meters of the property for the

use and enjoyment of the Sangguniang Barangay.

ii. Allow the Sangguniang Barangay to use the

property under usufruct for a period of twenty-five
(25) years.

iii. Retain ownership and title over the property, and

exercise all rights of ownership over the same.

iv. Issue the necessary licenses and permits to the

Sangguniang Barangay for the construction of its
Barangay Hall and Child Development Center,
subject to existing rules and regulations.

(b) The Sangguniang Bayan shall:

i. Use the property solely and exclusively as the site

for its Barangay Hall and Child Development
Center.

ii. Secure necessary licenses and permits for the

construction of its Barangay Hall and Child
Development Center.

iii. Maintain and preserve the property under usufruct,

including any buildings or facilities that the
Municipal Government may construct in the
property in the future.

iv. Undertake not to alienate, transfer, assign, or enter

into any agreement which would alter its
usufructuary rights or do any act which may be
 3

prejudicial to the rights of the Municipal

Government.

v. Introduce, provide, and maintain, at its own

expense, improvements, infrastructures, perimeter
fences, and other facilities that shall make the
property sustainable and viable for continued use.

3. References. — The following documents shall be attached,

deemed to form part, and read together with this Usufruct Agreement:

(c) Kapasiyahang Barangay Blg. 18-2020;

(d) Kapasiyahang Bayan Blg. xxxxx (2021);

(e) Kapasiyahang Barangay Blg. xx-2021;

(f) Site Development Plan; and

(g) All plans, drawings, models, and designs.

4. Disputes. — The parties shall endeavor to settle any conflict

that may arise from the implementation of this Usufruct Agreement, failing
which, the same shall be referred to arbitration or submitted to the
jurisdiction of the courts of Bulacan, to the exclusion of all other courts,
upon the discretion of the Municipal Government.

5. Effectivity. — This Usufruct Agreement shall take effect upon

the execution hereof and shall remain in full force and effect unless revoked
by mutual consent of the parties.

IN WITNESS WHEREOF, the parties have signed this Usufruct

Agreement this ___________________, in the Municipality of Bulakan,
Bulacan.

MUNICIPAL GOVERNMENT SANGGUNIANG BARANGAY

OF BULAKAN NG BALUBAD

By: By:

VERGEL C. MENESES MARIO S. BERNARDINO

Mayor Chairperson

Signed in the presence of:

 4

Dr. REYNALDO GLORIA __________________________

Administrator Kagawad and Chairperson
Municipal Government of Bulakan Committee on Public Works
Sangguniang Barangay ng Balubad
 5

ACKNOWLEDGEMENT

Republic of the Philippines )

Province of Bulacan )
_________________ ) s.s
x-----------------------------------x

BEFORE ME, a Notary Public for and in the Province of Bulacan

personally appeared:

Name Government ID

VERGEL C. MENESES

MARIO S. BERNARDINO

known to me and to me known to be the same persons who executed the

foregoing instrument, and acknowledged that the same is their free act and
deed.

This instrument consisting of _______ (__) pages including this

whereon the acknowledgment is written, has been signed by the parties and
witnesses on each and every page thereof.

WITNESS MY HAND AND SEAL, at the place and on the date first
above written.

Doc. No. ;
Page No. ;
Book No. ;
Series of 2021.