Rules and Regulations Governing the Registration, Operation and Resolution of Conflicts of Rural Waterworks and Sanitation Association (RWSA)

Rules and Regulations Governing RWSAs Contents Chapter I II m IV V VI VD VIII Applicability and Definition of Terms Registration of RWSA Duties and Responsibilities of the RWSA Duties and Responsibilities of the Member-Consumer Application for Water Service Water Tariff Conflicts Between RWSAs Final Provisions Revised Rules and Regulations Governing the Grant of Franchise 5 6 12 ' 14 15 16 17 18 19-22 REPUBCIC OF THE PHILIPPINES L9CAL WATER UTILITIES ADMINISTRATION REV1SE;Q RULJ!S AND REG'ULATlONS. GOVERN!N:G THE ~EGISTRATION, OPERATION AND ~SOLUTION ·oF CONFLICTS Of RURAL WATERWORKS AND SANITATION ASSOCIATION (RWSA): Pursuant to ExecutiveOrderNo. 577, as amended. dated January 12, 1980 and Executive Order No. 124 dated January 30, 1987 which abolished the Rural Waterworks Development Corporation (RWDC) and transferred its {unctions to the Local Water Utilities Administration (LWUA), • the Bo.atd of TrU$tees hereby promulgates the f-Olfowing revised rules and re,ulations. • • 3 Chapter I Applica-bility and Definition of Terms ARTICLE 1. AppltcabiUty. - These rules ana regulations sha1L apply to RWSA organized a1,1d regiStered by virtue of Executive Order No. 577, as amended. ARTICLE 2. Definition of Terms. - As used in these rµles, the following w.>rds or terms shall have the following meanings, unless a different meaning -appears from tl,e text of these rules a. "LWUA'-• shall meai tlre Local Water Utilities Administr,ation-; b. "WD" shall mean a local Water District forr,ied pursuant to PD 198, as amended; c. "RWSA" shall mean Rural Waterworks and Sanitation Association, a non-stock, non~profit cooperative a-ssociatiQn organiz~d and/or register­ ed with the LWUA1 d. '"Level II Service" shall mean a communal faucet water srstem operated by the R WSA. IUncludes piped distribution system with each faucet serving four (4) to six (6) household member-co-nsumers, e. "Level Ill Service" shall mean an individual homrehold connection water system. It includes a piped distribution network and at least a faucet for every household; f. "Dependable and adequate service" shaU- mean services that are ·consistent with the normal ~tand:ards based upon good quality management and operating practices, sufficient iri quantity, having-regard for the demands for service current­ ly exiSting and reasonably ·anticipated within the foreseeable future that is accessible on a constant and.regular basis; g, "Member.-c onsumer" shall mean any person or entity wh~ is a registered member of the RWSA; h. '''Jnvestigator' ' sh.all mean a person deputi~ed by the LWUA to 'nspect water supply service and investigate complaints for violation of any of these rules. 5 Chapter 11 Registration of RWSA ARTICLE 1. Who Shall Apply. - All duly register­ ed RWSAs shall continue as such and those to be organ­ ized shall register with LWUA in accordance with the provisions of Executive Order No. 577, as amended, in order to be entitled to the powers, rights and privileges accorded by the said Executive Order. ARTICLE 2. Filing of Corporate Papers. - Articles of Incorporation, By-laws and Amendments thereof, Articles of Merger, Dissolution and Changes in 'the Location of Principal Address shall be presented to LWUA for evaluation and processing and, if found to be in conformance with the provisions of Section 5(d) of Executive Order No. 577, as amended, shall be filed with the Office of the Corporate Secretary. Upon such filing, the articles of incorporation, by-laws, amendments, consolidation, merger, conversion, dissolution or certificate of change of location of principal office shall be in effect. ARTICLE 3. Place of Filing. - Every application for registration or amendment or consolidation or dissol­ ution shall be filed with LWUA, the nearest water dis­ trict in the province or with any LWUA deputized agent. Where an application is filed with the water district or LWUA deputized agent, said application shall be duly forwarded to Local Water Utilities Administration, MWSS-LWUA Complex, Katipunan Road, Balara, Quezon City. ARTICLE 4. Forms Required. Every appli cation shall be filed in the forms prescribed by LWUA and duly signed by the incorporators or officers of the RWSA. 6 ARTICLE 5. Requirements. - a) For application for registration, the following documents shall be sub­ mitted in two (2) copies each : 1. Articles of Incorporation • 2. By-laws 3. Minutes of Organizational Meeting 4. Minutes of First Board Meeting 5. Feasibility Study 6. Certificate of Availability of loan funds if funding is to be provided by other agencies. b) For amendment of articles of incorporation or by-laws, the following · documents -shall be re 9uired: '. I. Articles of Amendments 2. General Assembly Resolution 3. Board Resolution c) For consolidation, the followi~ documents shall be required: 1. A-rticles of Consolidation 2.- General Assembly Resolution 3. Board Resolution 4. Written-consent of creditors, if any d) For merger, the following documents shall be required: 1. Articles of-Merger 2. General Assembly Resolution 3. Board Resolution , 4. Written consent of creditors, if any e) For dissolution, the following documents shall be requited ; I. Articles.of Dissolution 2. General Assembly Resolution 3. Board Resolution • 4. Written consent of creditors, if any AR'nCLE 6. Name. - T.he name of the·association shall include the name of the community.: followed. by the phrase "Rural Waterworks and Sanitation Association, lnc. '·' . ARTICLE 7. In,;orporators: - At least five (5) but not more' than fifteen (15) Pt:rsons residing. in the same community may organize an RWSA in the maimer herein provided. ARTICLE 8. Articles of Incorpot'atton. The Articles of Incorporation shall be executed pursuant to Executive Order No. 577, as amended, and shall state among others, the following: a. Name of the. Association b. Address.of principal office c, Term of corporate e.xistenc:e d. Names and address of the incorpotators e. Names and address of directors who shall constitute the initial. board until t}:leir succes­ sors are elected and qualified 7 Such articles shall be signed by all incorporators,, wit­ nessed by at least two witnesses and executed in due form. ARTICLE 9. By-laws. - The power to adopt and thereafter to alter., amend or repeal the by-laws shall be vested in -the members, but a decisio.l} for the purpose shall be carried out by the majority vote of all members. The by-laws shall state the rights and obli­ gations of members, define the duties of dire-ctors and officers of the RWSA and tnay contain other provisions for the regulation and management of the affairs of the RWSA which are not inconsistent with its articles -.of in­ corporation and with Executive Order No. 577, as amended, and with other existing laws and regulations. ARTICLE 10. Members. Each inbQrporator shall become a member of the RWSA b~t any person of vot ing age and who is the head of a houi,ehold may become a member provided that such person agrees to avail of the services extended by the RWSA. Member~ ship in the RWSA shall not be transfexable. The by-laws shall prescribe additional qualifications and limitations with respect to such membership. ARTICLE 11. General Assembly Meeting. - a) A regular general assembly meeting of the members of the RWSA shall be held every year on a date fixed in the by-laws ; (b) Special meeting of the members may also be held at any time at the instance of the Boaxd, or -by ten- percent (10%) of all me~ben;: c) Whenever for any cause, there is no persbn authorized to call a meetmg, the LWUA, upon petition of at least ten percent (10%) of all members, may issue an order to its deputized 8 agents to call a meeting of the RWSA by ghing proper notice !IS required; d) Members must be notified person­ ally or by mail of any meeting to be called not less than ten (10) days before the date of such meeting stating the purpose(s), place and time o-f such meeting. e) Each member shall be entitled to only one (1) vote. All questions shall be decided by a majority vote,of the mem­ bers prese,nt. Election of directors and committee members shall be by secret ballot to. be administered by a committee on election. All other matters may be decided by raising of hands. ARTICLE 12. Minutes of GeneralAssemblyMeeting and Reports of Officers and Election of Directors. Within 36 days after a general meeting. and election of directors of t he RWSA; the .Chairman or any other officer of the RWSA shall submit to LWUA ·the minutes of saio meeting and the results of the election- duly certified by th.e RWSA Committee on election. The RWSA shaJi likewise submit the Chairman's report, the fmancial report and other committee rep~s. ARTICLE 13. Board of Directors. The busfaess and affairs of the RWSA shall be vested in its board of directors, subject to the regulatory supervj,sion.of LWUA. The function of the Board shall be t9 establish policy. The board shall not engage in the detailed management and operation of the water system of the RWSA. ARTICLE 14. Number and Qualificatians. - The board of directors of a RWSA shall be composed of five (S) persons who are of voting age and residents of the community(ies) covered by· the RWSA. An indivi­ dual holding an elective posit-ion in the government service is disqualified to serve as a director. ARTICLE 15. Co.mpensation, - No member of the Board shall receive any compensation other than per diems for his services as a director or for his services' rendered in any other capacity. The m:r diems shall be fixed by the Board of Directors subject to LWUA policies and guidelines. However, reimbursement of actual expenses incur-r.ed .in the performance of the duties as a member of the RWSA Boarc! may be allowed as spe­ cified in LWUA policies and guidelines. ARTICLE 16. Election and Ter,,;i of Board of Directors (BOJJJ. The general membership shall elect only the Board of Directors. The directors named ifi the Articles of Incorporation shall compose the interim board until the first annual meeting of its members or until their successors are elected and qualified. During the first annual assembly meeting, only five (5) board members shall be elected to office, two (2) of ,~horn shall serve for a tenn of one (1) year, two (2) for two (2) years, and one (1) for a term of three (3) years. Thereafter, the members of the Board shall be elected for a term of three (3) years. Any board members elected or appointed to fill vacancies 'in the Board occur­ ring before the expiration of a particular term shall hold office only for-unexpired term, ARTICLE 17. Officers. - The officers of the Board shall be the Chairman, Vice•Chairman, Secretary and Treasurer who shall be elected by and from among the Board of Directors at a board meeting held immediate­ ly after the annual meeting of the members. Any change in the Board composition due to resignation or other causes shall imined,iately be reported to LWUA. ARTJCLE 18. General Manager. - The Board of Directors of the RWSA may appoint a General Manager and fix his comp.ensation. Said appointment shall be forwarded to LWUA on a no-objection basis. No person shall Qe appointed to the. position of General Managei unless he possesses the followtng minimum qualification , a. He must be a resident of the area· covered by theRWSA; b. He must be familiat with waterworks business operations; c. He must not be a board member of the RWSA ; d. He must possess adequate educational back­ ground• 9 The general Manager shall have the following duties and responsibilities, among others : a. Advises and assists the Board of Directors on the formulation of objectives., plans and policies in all areas of concern to the R WSA; b. Directs the management and business of the RWSA pursuant to the resolutions and policies of the Board of Dir-ectors ; c. Prepares the budget of the RWSA and submits the same to the Board of Directors for appmval; d. Submits a periodic report of the oper-ati0ns of the '.RWSA to the Board of Directo-rs. and L WUA or at any other time the board or L WU A may require ; e. Appqints employees of the RWSA; f. Performs such other duties and responsibilities as the board oi Directors may, from tin).e to time, prescribe. ARTICLE 19. Liability of Directors and Officers of the R WSA. A director or officer may be held personall:y liable if: a. He willfully and knowingly votes for or assents 'to patently unlawful acts of the RWSA • b. He is guilty of gross negligence or bad 1 f-aith in directing the affairs of the RWSA; c. He acq ufres and prnfits from any p-ersona\ or pecuniary' interest in conflict with his duty as director and/or officer. ARTICLE 20. Amendment of Artic1es of Incor­ poration and By-laws. - A RWSA may amend its articles of incorporation and by-laws by submitting the proposed 10 amendments to a general assembly meeting of members. If the proposed amendments are approved by the majority of all the members, the Chairman and the Secretary snal] accomplish the required documents as provided in Article S (b) herein. The amendment shall take effect upon its approval by the L WUA. ARTICLE 21. Consolidati.on qr Merger. The consolidation or merger of two or more R WSAs may be effected in the event that LWUA shall have determined, after a review and evaluation, that such merger or consolidation shall be in the best interest of the RWSAs concerned and the communities they serve. ARTICLE 22. Effect of Consolidation or Merger. a) In the case of consolidatjon, the individual existence of the consolidating RWSAs shall cease and the articles of consolidation shall be deemed to be the articles of incor­ poration of the resulting RWSA I and in the case of mer­ ger, the articles of merger of the resulting RWSA shall be such that the existence of the merged RWSA shall be absorbed and carried on bythe;Surviving RWSA. b) AU rights, properties, real or personal and privileges including applications for membersbj.'J), all debts due on whatever account of each of the consolidating or mer­ ging RWS-As shan be deemed to be- tuansferred to and vested in the new or surviving RWSA. c) The new or surviving RWSA shall be responsible and liable for all the liabiliti~ and obligations of each of the consolidating or merging RWSAs; and, d) Neither the rights of creditors nor any liens upon the property of any such RWSA shall be im17aired by such consolidation or merger. ARTICLE 23. Dissolution. RWSA may be dissolved by su·bmitting to LWUA the required documents as provided for in Article 5 (e) herein. ARTICLE 24. L WUA 's, Approval and Bffectivity of Merg(tr, Consolidation or Dissolution. - The Articles of Merger , or of -Consolidation, or of Dissolution sig11ed and certified as her~irr re11uired, shall be submitted to LWUA fot its approval. Whereihe LWUA is satisfied that the ·merger or consolidation o,r dissolution oft.he RWSAs concerned is not incon$istent with the provisions of Executive Order No. 577, as amended, and existing laws and regulations, it shali-issue ,a Cei:tificate of Merger, or of Consolidation, ot of Dissolution, as,the.casemay be, at which time, the merger or conso·lidation or di~solution shall be in effect. If upon investigation, the LWUA has reason to believe that the proposed m'erger, or consolidat,ion or dissolution is contrary to or inconsistent with the existing laws, it shall set a hearing .at which the RWSAs concerned shall be given the opportunity to be heard. ARTICLE 25. Non-liability of Member for Debt of A.ssociq(ion. - No member shall be held liable or responsible for any debts incurred by the RWSA nor the prop.erty of any member be subj-ect to any execution or court litigation. 11 Chapter Ill Duties & Responsibilities of the RWSA ARTICLE I. Observance. - Every RWSA shall comply with all the terms and conditions in its Certificate of Franchise, and all existing laws, rules and regulations. ARTICLE 2. Water Permit. - Every RWSA shall secure a water permit from the National Water Resources Board in accordance with the provisions of the Water Code of the Philippines. ARTICLE 3. Service. - Every RWSA shall operate, maintain and provide dependable and adequate water service. ARTICLE 4. Information and Assistance. - Every RWSA shall, upon request, give any member--consumer, 12 all information and 8$istance pertaining to its service in order that said member-consumer may secure safe, proper, adequate and efficient service. ARTICLE 5. Investigation and Complaints. Every RWSA shall, within a reasonable time, make a full and prompt investigation of complaints referred to it concerning the service it renders. ARTICLE 6. Service Interruption. - In all cases where practicable, every R WSA shall give notice to its member-consumers in advance of any contemplated stoppage of water service and the probable duration thereof in the area(s) affected. ARTICLE 7. Aecounts. - Every RWSA shall keep such books of accounts and other records as may be necessary to afford an intelligent understanding of its business. If a uniform system of accounting is hereafter prescribed by the LWUA, said system shall be adopted and observed. ARTICLE 8. Maintenance of Water Source and Related Facilities. Every RWSA must properly maintain its water source and facilities at all times. Water samples should be collected annually or whenever necessary at the pump discharge or spring box for laboratory test with the nearest Water District or Pro­ vincial Health Office regarding the potability of the water supply. ARTICLE 9. Installation of Meters. - Meters and auxiliary metering devices shall be furnished and installed by the RWSA to member- consumers with household connections. I 0 ARTICLE 10. Location of Meters. - All meten shall be installed within the consumer's premises , in a clean and safe location, free from vibrations, and where it is easily ,accessible for reading and testing. Under no conditions should meters be located behind doors or where they can be easily broken or jarred by moving objects. ARTICLE 11. Water Meters. - No i-neter ~hall he placed .in senice unless it has been tested and certified by the LWUA's accredited suppliers or any of its, de­ signated agents in the provinces. It must be readjusted and returned in service after being- tested, certified and sealed by the LWUA. ARTICLE 12. Meter Reader and Bill CallecMr. Every ~WSA sha11 employ in his serVice a metei: and /or a bill collector, or designate one of his employees to collect payment of water bills from member-consumers. ARTICLE 13. Payment of Bills. - The RWSA may requite that a water bill be. paid within the specified time after dema-nd has been made. When the billing period covers a month or more. the. maximum time allowed for payment shall be within (ifteen (15) days after demand and 1,1po.n expiration of the specified time, service may be disconnected for non-payment~ provided, that two (2) days written notice of such disconnection is made and if the member-consumer tenders payment of the unpaid bill to the collector, said collector, agent or employee shall be oblige.cl to accept payment and issue • a temporary receipt for the amount and shall desist from disconnecting service. , ARTICLE 14. Water Bills. - Water bills shall be sent to member-consumers at regular intervals which shall show the period covered, amount of bills, among others. ARTICLE 15. Reconnection of -Service. - -In case of disconnection of service due to non-payment of bills~ reconnection shall be made immediately after the settlement of previous unpaid bills including interest thereon. The RWSA may charge interest on unpaid bills which shall not exoeed nine percent (9%) per annum. A reconnection fee may be charged by the R WSA from the member-consumer in an amount not exceeding twenty pesos (P20.00) • . . ARTICLE 16, No.n-profit, Non• discriminatory, Operat'ion an.d Services. - The RWSA shall be oper:ated on a non-profit basis for the benefit of its members and ~hall, as to rates and serVi,oes, make. no prefer·ence to any member, or to subject him to unreasonab1e prejudice or disadvantage. ARTICL:E 17. Discrimination. It shall be unlaw• ful for the RWSA to give undue pfeference or make unjust discrimination in his service. ARTICLE 18. Unauthorized Equipment. - No RWSA. shall .increase, substitute or witlidraw machinery nor equipment in service without previollS authority of the LWUA. ARTICLE 19. Refusal, Obstruction to Investigation, etc. - It shall be unlawful for any RWSA or any of his employees or ag·ents to refuse, obstruct, hinder the con­ duct of an official investigation, inspection, examination of his service or test of any of his equipment by any official, deputy or agent of the LWUA. 13 Chapter IV Duties & Responsibilities of the Member-Consumer ARTICLE I. Observance. - Every member-con­ sumer shall comply with all policies, rules, l;n:i1letins issued or to be issued by the RWSA Board, ARTJCLE 2. Paym-ent of Bills. - Every member­ co.nsumer shall pay his bill not )ater than fifte.en ( 1-5) days fro~ its presentation and/or demand. ARTICLE 3. Protection fro m Loss or Damage, Paymen.t of Lost/Damaged Communa l Faucet· or Meter­ Ev.ery member-consumer shall see ~o it tl:tat the communal faucet or met·er shall be protected from loss or damage. The loss or damage due to the fault or negligence of the member shall be bom.e by hiin, ARTICLE 4. Entry to Make Repairs. Every member-consumer shall allow the authorized personnel of the RWSA at reasonable hours, to perf<;>rm n~ces~y repairs on the communal faucet, meters or pipings, ARTICLE 5. Conservation of Water/Waste Water Disposai. - Every member-consumer sna.11 pr·event the waste of water. He shall likewise see to it that waste water- shall be disposed of in such a manner that it;,will not injure the health and safety -0f the commwiity. ARTICLE 6. Change location ofmeter or tapping. It shall be unlawful for any member-consumer to dismount o.r change. the location of a meter , or transfer the location. of tapping at the water main with.out authority from the RW.SA. ARTICLE 7. Breaking of Meter Seals. - No other person other than those authorized oy the RWSA shall break the seal of a meter, nor shall a meniber-consumer 14 permit such breabng at the seal, or the tamp ering of a meter by unauthorized person. ARTICLE -S . Unauthorized tapping, addition, e-xtensiort or su.b.conneetions. - lt shall be unlawful to tap., make or build any connection with the water supply system or to make an'y addition, extension or robconnection thereto without ,any written permission from the RWSA, Chapter V Application for Water Service ARTICLE 1. Forms. - Every prospective member­ consumer shall be entitled to the use of the level II service upon sjgning and approval. of an application fo.r m~mbership to be furnis hed by the-.RWSA. Other pros• pective· member-consumers for le".el III water serVice shall likewise sign an applicatio.n fot ·water ser:.vice in a form to be provided by the RWSA. ARTICLE 2. Priority of Application. ~ Applicat­ ions for water servj,ace shall be processed on a first come­ first served basis. , ARTICLE 3. Serviee ~eposit. - Service deposit shal} be required for commercial ·and industrial consumers of the RWSA in such amount to be fixed by the. BOD. '. [his cas.h,-deposit shall answer for unpaid bills. 15 Chapter VI Water Tariff ARTICLE 1. Water Rates and Charges. - Every RWSA shall strictly a'dhere to its al,Jthotized water rates. and charges and all changes, modifications or adjustments thereof shall not become effective u-nless Ie'V.iewed and approved by LWUA. ARTICLE 2 Filing of Application for Water Rates Adjus~ment. - Request f.or authority to increase/ decrease rates shall be in the form of a board resolution to be filed with the LWUA. ARTICLE 3. Approval and EffectilJity of Rat.es. All adjustments filed s)lall be reviewed and approved by the Board of Trustees of LWUA and shall be enforcea­ ble fifteen (15) days after approval. 16 \ \. Chapter VII Conflicts Between RWSAs ARTICLE 1-; Jurisdiction over Conflicts. - In case of conflict between two o·r more RWSAs, the LWUA shall have exclusive, jurisdiction to seWe such conflicts subject t◊ sueh appropriate hearings, implementing rules and regulations and ·other action as the Board of Trustees may determine. ARTICLE 2. Matters Supporting Claims. - In order to validate or sup port claims and counter claims, positions . taken by conflicting R WSA s and to confirm directlr the desire of the general assembly of the conflict­ ing R:WSAs with respect to such conflict, the LWUA Board may direct the conduct of a referendum, the result of which may be considered as evidence in the appropriate hearing, or take any remedial measure which the LWUA board may decide to help resolve such conflict. 17 Chapter VIII Final Provisions ARTICLE 1. Copy of Rules and Regulations.- Every RWSA shall keep a copy of these rules and regulat­ ions on file. ARTICLE 2. Wqter System Expansion and Up­ grading. - Every RWSA shaJJ seek the prior approval of L WU A before taking up substantial expansion, improvement or upgrading of its water works systems. ARTICLE 3. Violation of these Rule~ and Regu'lat­ ion s. - Violation of any section of these rules shall be subject to the sanctions pro~ded for by existing laws and regulation including but not limited t<;> the exercis e of the-power under Section 8 of Executive Order No. 577, as amended: ARTICLE 4. Separability of Provision - Should any provision of these rules and regulations be declared invalid, no other provisions hereof shall be affected thereby. ARTICLE 5. Repealing, Clause. - All rules and regulations, which are ·mco·nsistent herewith are hereby repealed,. amended or modified accordingly. ARTICLE 6. Effectivity. - These rules a:nd regulat­ ions shall take effect fifteen (IS) days after their publicat­ ion in a newspaper of general circulation. 18 Adopted at Quezon City on Jufy 27, 1988. Approved pursuant to Resolution No. 108, series of 1988. (SGI;)) TEODORO 6. GENER ·Chairman (SGD)JUSTINO G. BERNAS Vice-Chairman (SGD) BENJAMIN E. DIOKNO • Member (SGD) PORTHOS P. ALMA JOSE Ex-Officio Member ATTESTED BY : (SGD) ARMANDO C. LIZASO Corpotate Secretary '\ REPUBLIC OF THE PHILIPPINES LOCAL WATER UTILITIES ADMINISTRATION Katipwum Road, Ballta . Quezon City . ·~ REVISED RULES AND REGULATIONS GOYElt.NlNG/l'IJE GRANT OF 'FRANCHISE ' . ' .-. PURSUANT TO EXECUTWE ORDER NO. 124 WIDCB ABOLISHED !HE RURAL WATERWORKS DEVELOPMEN't CORPORATION (RWDC) AND TRANSFERRED ITS FUNCTIONS TO THE LOCAL WATER UTILITIES ADMINISTRATION (LWUA), THE BOARD OF TRUSTEES HEREBY ADOP'I'.S THE FOLLOWING RULES AND REGULATIONS IN ACCOJDANCE WlTH SECTlOJli 36 OF EXECUTIVE OR:OER NO. S7"t, ;AS AMENDED. .. . ARTICLE I TITLE AND DEFINITION OF TERMS SECTION 1. Title. - Tliese rules and regulations shall - be. known and cited as the "Revised Rules and Regulations Governing the Grant of Franchise." SECTION 2. Definition of Terms. 20 a. "Executive Order" means Exec.u.tivt Order No. 577, as amended by Exe cutive Order No. 869 and Executive Order No. l 24 dated 3-0 J anuai:y 1 9 87. b. "Commission" shall mean the Board of Trustees of LWUA, acting as a Commis­ sion, pursuant to Section 36 of Executive Order No. 869. c. ''Commissioner" shall mean any member of the Board of Trustees. d. "R. WSA" shall mean any Rural Water­ works and Sanitation Assodation organ. ized and registered -qnder Executi-ve Order No. 577, as amended. e. 'Person or entity'' shall mean any natural person, firm, association, cooperative, corporation, business trust, partn,ership, local g<:>vernment . anQ privately-owned public service entity which operates and maintains a water­ works system. f. "Franchise" shall mean the authority granted to any person or RWSA to supply water within its axea of coverag e. ARTICLE Il APPLICATION FOR FRANCIDSE AND REPLY SECTION 1. Who May Apply. - Rural Waterworks Sanitation Association (RWSA) or any person, COrJ?oration, cooperative or entity qualified under existing laws may apply with the Commission for a franchise to operate a rural water supply system. SECTION 2. Opposition. OpPQsition to an application stating the grounds therefor shall be filed with the Commission at least five (5) days before the date scheduled for the · hearing of the application. The applicant shall be furnrshed with a copy of the opposition. SECTION 3. Reply. - Theapplicantmay, ifheso desires, file a written reply to the opposition on or before the date of hearing. The oppositor shall be furnished with a copy of the reply. ARTICLE ID PLACJ<; OF FILING APPLICATION SECTION 1. Place of Filing. - Any application for franchlse shall be filed with th.e nearest Water District or othe! designated ·a~ency for proper endorsement to the Local Water Utilities Administration , Katipunan Road, 13alara, Quezon City. ARTICLE IV FORM AND REQUIREMENTS SECTION 1, Form. - All applications shall be filed in the prescribed form and sworn to by the applicant. SECTION 2. Requirem1mts. - An application shall be supported by the following. 1. Application.for Franchise 2. Certificate of Registration 3. Certifica,te of Project Completion 4. Copy of Bacteriological Analysis of the water duly certifiei::1 by the proper government agimcy S. Plan of the watei: system facilit.ies (distribution lystem, reserYoir pump house, etc,) 6. Copy of Schedule of Rates 7, Breakdown of Investment 8. Statem.ent ef Jncome and Expenses. SECTION 3. Filing Fee. - There shall beimposed and collecteo a fee of One Hundred Fifty Pesos· (PlS0.00) ,from the applicant. ARTICLE V PROCESSING OF APPLICATION SECTION 1. ProcessiTJg, - Upon receipt of an application of water franchise, the LWUA shall process the same to determine compliance with the requirements prescribed in Section 2 Article IV hereof. SECTION 2. Posting of AppliC4tion. ~ If found in order, copies of the application shall be sent to the applicant who is required to post the same in the follow­ ing places for a period of thirty (30) days: a. Municipal hall and Barangay center of the­ community cove.red by the applic;:aJion; h. Place of business of the applicant; c. The Water District 'Office within the area. 21 SECTION 3. Grant of Franehise - After the lapse of the posting period; and there being no opposition to the application, the Con:nnission shall .grant the Franchise. ARTICLE V( CONTESTED APPLICATION SECTION 1. Notice. - In case an opposition to an application for franchise is filed, LWUA shall set th~ same for hearing and .shall serve notice in writing of the date thereof. SECTION 2. Petition ["qr Reconsiderat ion. Any party aggrieved by the decision of the Commission may request for reconsideration thereof by filing. a petition.for reconside,ratlon with the Commissio.n,within fifteen (lS) days after receipt of th'e notice of the order" ruling or decision in q~~sti.o-n. ' ARTICLE vn ORDERS, RULINGS AND DECISIONS' SECTION , l. Time to Render. In all cases, the Commission shall render its order.~ruling or decision in writing within thirty (30) days aft~r the case-is submitted for resolution or decision. SECTION: 2. Promulgation a.nd Sef:JJl'ce. - Every order, i:ufing or decision of the Commission shall be promulgated ~nd served upon the person or ,public service. entity affected thereby within ten (10) days from the time the same is e11tered and promulgated. 22 ARTICLE Vlll EFFECTIVITY SECI.lON 1. Effecti-vity , - These implementing R:ules and Regulations shall take effect fifteen (15) days after publication in a newspaper of general circulation. Adopted at. Quezon City on July 27, 1988. Approved pursqant to Resolution No. ro9, series of 1988. (SGD) TEODORO G. GENER Chairman (SGD) JUSTINO G. BERNAS Vice-Chairman (S"GD) BENJAMINE. DIOKNO Member (SGD) PORTIIOS P. ALMA JOSE Ex-Officio Mero ber ATTESTED BY: (SGD) ARMANDO C .. LIZASO Corporate Secretary Produced by Regulatory Services & Public Affairs Department LWUA 1988 Republic of the Philippines O LOCAL WAfER u ADMINISfRArlON • UflLlrlES KATIPUNAN ROAD , BALARA , QUEZON CITY TEL. NOS . 9S-19-31 to3S*97-61-27*9S-32-61 to69