Proposed SP Ordinance 15-002-2019

Republic of the Philippines
OFFICE OF THE SANGGUNIANG PANLUNGSOD

SP Bldg., City Hall Complex, J.P. Rosales Ave., Doongan, Butuan City
LEGAL OPINION
(25 September 2019)
Respectfully indorsed to HON. OMAR ANDAYA, Chairman of

Committee on Committee on Economic, Trade and Industry Development,
City Councilor, this city, the herein Legal Opinion in connection with the
proposed ordinance entitled, “AN ORDINANCE REGULATING THE
SLAUGHTER OF LIVESTOCK IN THE CITY, PROVIDING FEES FOR THE
USE OF THE CITY SLAUGHTERHOUSE AND ITS FACILITIES AND THE
CONDUCT OF MEAT INSPECTION ANN THE ISSUANCE OF PERMITS,
IMPOSING PENALTIES PROVIDED THEREOF, AND FOR OTHER
PURSPOSES.”
The undersigned would like to submit the legal opinion with regard to
the following papers and documents submitted to this office for review and
evaluation:
1. Letter dated 27 May 2019 from Alexander Dy, a representative of De Oro
AJECC Inc. which was duly received by the office of the Committee Chair on 29
May 2019 Re: Comment on Proposed Amendment of SP Ordinance 817-90 as
submitted by the Office of the City Veterenarian;
2. Letter dated 20 January 2019 from Engr. Alexis Torralba Porras, the Officer In-
Charge of the De Oro AJECC Inc. which was duly received by the Committee
Chair on 1 February 2019;
3. SP Ordinance No. 817-90 An Ordinance Imposing Slaughter Fees and Other
Charges for the Use and Operation of the Butuan City Public Slaughter House,
Providing Penalties Therefor and for Other Purposes;
4. Proposed Ordinance No. 15-002-2019 An Ordinance Regulating the Slaughter
of Livestock in the City, Providing Fees for the Use of the City Slaughterhouse
and the Issuance of Permits, Imposing Penalties Provided Thereof, and for Other
Purposes;
5. Legal Opinion from the City Legal Office dated 26 June 2019 submitted to the
Committee chair which was duly received on 27 June 2019.
After a prudent review of the foregoing papers and documents, this

office would like to focus on the following issues:
I. WHETHER OR NOT THE SANGGUNIAN MAY VALIDLY REGULATE

THE SLAUGHTER OF LIVESTOCK IN THE CITY
Phone : (085) 815066232-307

Email : lgu.butuan.sp@gmail.com 25-5737
Website : http://www.butuan.gov.ph mo.butuan@gmail.com
II. WHETHER OR NOT THE SECTION 5.1.6 OF ARTICLE 5 OF THE

CONCESSION AGREEMENT ENTERED INTO BY AND BETWEEN THE
DE ORO AJECC, INC. AND THE CITY GOVERNMENT “FOR THJE
REHABILITATION OF THE BUTUAN CITY SLAUGHTERHOUSE AND
LIVESTOCK AUCTION MARKET AND OPERATING IT THROUGH A
CONCESSION FOR THE BUTUAN CITY GOVERNMENT” IS VALID
DISCUSSION
I.
WHETHER OR NOT THE SANGGUNIAN MAY VALIDLY REGULATE
THE SLAUGHTER OF LIVESTOCK IN THE CITY
The Local Government of Butuan City through the Sangguniang

Panlungsod may validly regulate the slaughter of livestock within the
territorial jurisdiction of the City. The Republic Act 7160, otherwise known as
the Local Government Code of 1991 explicitly provides that:
SEC. 16. General Welfare. - Every local government unit shall exercise the
powers expressly granted, those necessarily implied therefrom, as well as powers
necessary, appropriate, or incidental for its efficient and effective governance,
and those which are essential to the promotion of the general welfare xxx.1
The authority of the Sanggunian to regulate the slaughter of livestock in

the City stems from the police power of the state to enact ordinances and make
regulations not repugnant to law, as may be necessary to carry into effect,
including what may be is necessary and proper for the health and safety, good
order, comfort and convenience of the City and its inhabitants and for the
protection of their property. It also includes the discharge of powers and duties
conferred upon them by law which they may validly exercise under the
general welfare clause of the Local Government Code.2
After a prudent review of the foregoing Proposed Ordinance, this office

submits that the Sanggunian may validly regulate the slaughter of the livestock
in the City for the reason that such regulation pursues the interest of the public
generally, as distinguished from those of a particular class, the means
employed in the exercise thereof are reasonably necessary for the attainment
of the object sought to be accomplished and the same is not oppressive. It may
Phone : (085) 815066232-307

also be clearly inferred that such regulation is only within the territorial
jurisdiction and limits of the City and the same is consistent and in concurrence
of a lawful subject and lawful method.3
II.
WHETHER OR NOT THE SECTION 5.1.6 OF ARTICLE 5 OF THE
CONCESSION AGREEMENT ENTERED INTO BY AND BETWEEN THE
DE ORO AJECC, INC. AND THE CITY GOVERNMENT “FOR THE
REHABILITATION OF THE BUTUAN CITY SLAUGHTERHOUSE AND
LIVESTOCK AUCTION MARKET AND OPERATING IT THROUGH A
CONCESSION FOR THE BUTUAN CITY GOVERNMENT” IS VALID
The aforementioned issue proceeds from the pertinent provision the

concession agreement entered into by and between the City government and
De Oro AJECC on May 25, 2015. Section 5.1.6 of Article 5 of the same
Agreement which reads that:
Section 5.1 Obligations of the First Party (City Government)- The FIRST
PARTY shall:
5.1.6 Refrain from granting any third party any privilege and/or
concession to construct a slaughterhouse for hogs and ruminants and
operate the same within Butuan City during the concession period,
subject to Section 12.6 of this Agreement.4
Firstly, it is important to remember that a concession agreement is one

by which a company and the government enter into a contract, giving the
former the right to operate a specific business within the latter's jurisdiction,
subject to certain terms, including the right to operate a facility for a stated
period of time and under specified conditions. Hence, the parties to a
concession agreement must necessary observe the mutuality of contractual
obligations because such agreement is binding upon them and has a force of
law as between them.
Inherent in the stage of a contractual relations in the preparation and

conception of terms and conditions which may be the subject of a concession
agreement. Consistent with the Principle of Freedom in contracts, The New Civil
Code on Obligations and Contracts provides that:
Phone : (085) 815066232-307

Article 1306. The parties may establish such stipulations, clauses, terms
and conditions as they may deem convenient, provided they are not contrary to
law, morals, good customs, public order, or public policy.
Hence, it is submitted that the parties to a concession can freely introduce

terms and conditions to the contract generally without restraint pursuant to
non-impairment of contractual relations but this only refers to contracts which
are legal, not void or inexistent ones.5
Proceeding therefrom, the issue arose by reason of the pertinent

provision of the concession agreement subject of the Proposed Ordinance
which expressly prohibits and refrains the City government from granting any
third party any privilege and/or concession to construct a slaughterhouse for
hogs and ruminants and operate the same within City during the concession
period.
This office submits that the subject provision of the concession

agreement unduly confines and restricts the authority and power of the
Sanggunian to regulate the slaughter of livestock in the City, the stock facilities
and the slaughterhouse within its territorial jurisdiction. The Sanggunian may
invoke its regulatory powers in order to protect and advance the welfare of the
public in general. This power can neither yield to a mere contractual
stipulation nor bow to a contractual obligation. The Supreme Court on that
matter has made a clear pronouncement that “regulation can be had to
promote the common good. Hence, a contract has to yield to the greater
authority of the State’s exercise of police power. It has long been settled that
police power legislation, adopted by the State to promote the health, morals,
peace, education, good order, safety, and general welfare of the people prevail
not only over future contracts but even over those already in existence, for all
private contracts must yield to the superior and legitimate measures taken by
the State to promote public welfare”6
It is therefore the submission of this office that the subject provision the
concession agreement refraining the City government from granting any third
party any privilege and/or concession to construct a slaughterhouse for hogs
and ruminants and operate the same within Butuan City during the concession
period must be seriously reviewed in order to conform with the pertinent laws
abovementioned regarding the matter.
Phone : (085) 815066232-307

Finally, this office subscribes to the recommendation of the City Legal

Office dated June 26, 2016 that was forwarded to the office of the Hon. Joseph
Omar O. Andaya Re Amendments of SP Ordinance No. 817-1990 recognizing
the benefits of expanding slaughterhouses in barangays. However, this should
not be done at the expense of public safety and health of its constituents.
Further, there is a need to deliberate on the proposed amendment in order that
the same is in harmony with the Concession Agreement.
For your information and guidance.
1 Section 16, Local Government Code of 1991

2 Rural Bank of Makati v. Municipality of Makati, July 2, 2004
3 Lucena Grand Central v. JAC, G.R. No. 148339, February 23, 2005
4 Section 5.1.6, Article 5 of the Concession Agreement entered into by and between the City Government of
Butuan and DE Oro AJECC, Inc.

5 San Diego v. Municipality of Naujan, L-9920, February 29, 1960
6 Surigao del Norte Electric Cooperative, Inc. (SURNECO) v. Energy Regulatory Board G.R. No. 183626
October 4, 2010
Phone : (085) 815066232-307


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Republic of the Philippines

OFFICE OF THE SANGGUNIANG PANLUNGSOD

Respectfully indorsed to HON. OMAR ANDAYA, Chairman of

After a prudent review of the foregoing papers and documents, this

I. WHETHER OR NOT THE SANGGUNIAN MAY VALIDLY REGULATE

Phone : (085) 815066232-307

II. WHETHER OR NOT THE SECTION 5.1.6 OF ARTICLE 5 OF THE

The Local Government of Butuan City through the Sangguniang

The authority of the Sanggunian to regulate the slaughter of livestock in

After a prudent review of the foregoing Proposed Ordinance, this office

Phone : (085) 815066232-307

The aforementioned issue proceeds from the pertinent provision the

Firstly, it is important to remember that a concession agreement is one

Inherent in the stage of a contractual relations in the preparation and

Phone : (085) 815066232-307

Hence, it is submitted that the parties to a concession can freely introduce

Proceeding therefrom, the issue arose by reason of the pertinent

This office submits that the subject provision of the concession

Phone : (085) 815066232-307

Finally, this office subscribes to the recommendation of the City Legal

For your information and guidance.

1 Section 16, Local Government Code of 1991

Butuan and DE Oro AJECC, Inc.

Phone : (085) 815066232-307

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