QuestionsQuestions (Republic Act No. 4063)
RA 4063 grants Lazatin Incorporated the right, privilege, and authority to construct, maintain, and operate a water system. The franchise is for a period of twenty-five (25) years from the approval of the Act.
The franchise does not take effect until the grantee obtains from the Public Service Commission (or its legal successor) a certificate showing public necessity and convenience, in accordance with Section 15 of Commonwealth Act No. 146 (as amended), and files that certificate with the Secretary of Public Works and Communications upon accepting the franchise.
If the grantee does not file the proper application with the Public Service Commission within three (3) months from the date of approval of the Act, the franchise becomes null and void.
The grantee may construct and maintain water mains, pipes, conduits, reservoirs, or dams on land it owns or lawfully acquires; install and maintain water mains and necessary apparatus in streets and public places or along/under bridges within Angeles City (after acquiring the required rights of way); and purify water sources, reservoirs, and dams subject to approval of the Bureau of Health Services.
The grantee may charge and collect a schedule of prices and conventional rates, but these are always subject to regulation by the Public Service Commission (or its legal successor).
All water mains and pipes within the strong-material zone must be placed at least forty-five (45) centimeters below the surface of the ground as far as the upper part of the mains or pipes is concerned.
Between the reservoir and the source of supply and within the strong-material-zone limits, mains/pipes may be put above ground on the grantee’s right of way except when they cross a street or public place, in which case they must be placed below the required depth.
The grantee must supply water to any applicant within fifteen (15) days from the date of application, in the order of the date of application, up to the system’s capacity as determined by the PSC upon the grantee’s application.
The grantee must increase the capacity of its system to meet the increased demand, in accordance with the decision of the Public Service Commission (or its legal successor).
The Public Service Commission may designate the streets and public places where the distribution system of the water pipes may be installed, laid, maintained, and operated.
Yes. The grantee must make all connections with the applicants’ mains and may demand a fair charge for such connections, as provided by order of the Public Service Commission.
All apparatus and appurtenances must be modern and first class in every respect. The mains and pipes must be placed and maintained so they do not interfere with unrestricted use of public places and streets. Operations must always be subject to reasonable regulations promulgated by the PSC.
After mains/pipes are laid, the grantee must without delay replace sidewalks properly, remove all rubbish, dirt, refuse, or other material, and leave the streets/thoroughfares in as good condition as before the work.
The grantee (and its successors/assigns) must make the changes at its expense, without delay, and place the mains/pipes where the city council directs.
The grantee agrees to compensate the city for damage to city property due to non-construction or neglect/omission to keep the system safe. It is also responsible for damage to individuals, corporations, partnerships, associations, and joint stock companies arising out of fault or negligence.
The grantee must file written acceptance within 120 days from obtaining the required PSC certificate. Work must commence within 6 months from filing acceptance (subject to force majeure and similar causes). The system must be completed and in operation within 18 months from filing acceptance.
Upon consideration of the franchise, the grantee pays quarterly to the city treasury 3% of gross earnings during the first 15 years, and 2% during the remaining 10 years, of the franchise life.
Upon acceptance, the grantee must deposit 10% of the value of the investment (in cash, negotiable government bonds, or other approved securities) as an earnest of good faith and guaranty to begin and be ready to operate the business. If the grantee fails (without valid grounds such as force majeure) to commence work within 6 months or be ready to operate within 18 months, the deposit is forfeited to the city as damages; if it complies on time, it is returned upon recommendation of the PSC.
RA 4063 provides that lands or rights of use/occupation secured under the franchise revert upon termination to the national, provincial, or municipal governments that owned them at the time the franchise was granted. Also, lands/rights used in connection with the franchise become the property of the City Government.