Local water utility system policy and administration

Local water utilities should be locally controlled and managed.
Support needed at the national level for technical assistance and financing.
Local Water Utilities Administration established to optimize public water utility operations.

Clarifies terms such as Appointing Authority, Administration, Board of Directors, Districts, Local Water Utility, Person, Property, and Trustees.
Appointing authority depends on service connections' geographic concentration.

Authorized by local legislative bodies via resolution including name, boundary, intent to transfer facilities, purpose, initial directors, dissolution conditions, and powers acknowledgment.
Multiple jurisdictions can form a single district through corresponding resolutions.
Filing of resolution with Administration confirms district existence.

Composed of five qualified residents representing civic, professional, business, educational/religious, and women's organizations.
Directors appointed by the appointing authority from nominations or otherwise.
Staggered terms of 2, 4, and 6 years initially; thereafter six-year terms.
Directors compensated per meeting, not liable personally for district actions.

Holds an organizational meeting within 45 days after formation.
Elects chairman, vice-chairman, secretary, and treasurer.
Majority presence constitutes quorum; policies enacted by majority vote.
Board exercises all district powers and establishes policy but delegates detailed management.
Board adopts by-laws with public notice and hearing.

General manager, auditor, and attorney appointed by board.
General manager oversees operation, construction, and administration.
District exempt from Civil Service Law; salary cap ensures maximum 50% of net revenue on compensation.

Acquire, install, improve, maintain, operate waterworks and sewerage systems.
Sell water and provide sewerage services within district.
Enforce connection to sewer system within 35 meters, declare noncompliance a public nuisance.
Rights to construct and maintain works on government lands and across public ways.
Enter contracts for cooperation, payment in lieu of taxes, and MWSS agreements.
Protect water sources; regulate wells to prevent interference with district waters.
Install fire protection capacities with reimbursement agreements.

Treasurer handles all district funds; deposits in Philippine National Bank.
Issue negotiable promissory notes up to 20% of annual gross revenue.
Revenue bonds issued with detailed regulations on issuance, form, payment, and default remedies.

Uniform rate schedules for water with different categories and blocks.
May impose sewer service and stand-by charges; services discontinued upon nonpayment.
May levy groundwater production assessments for commercial/industrial uses causing financial harm.
May assess properties for sewerage capital improvements; assessments are liens if unpaid.

Territory exclusion upon finding no benefit.
Annexation and deannexation governed by Administration upon notice and hearing.
Consolidation or merger ordered by Administration if in best interest of residents.
Dissolution conditioned on asset transfer, bondholder consent, and court approval.

Districts exempt from all income taxes, local fees, duties on imported equipment.
Exclusive franchise for domestic water service unless district consents otherwise.

National agency attached to NEDA to set minimum standards, provide technical assistance, monitor utilities, effect system integration, provide specialized financing.

Five members with specified experience in banking, local water utilities, or engineering.
Appointed by President for staggered 5-year terms; removable for cause.
Establishes policies but not involved in detailed management.
Receives per diem compensation for meeting attendance.

Adopts by-laws with NEDA approval.
Board elects chairman, vice-chairman; appoints secretary, treasurer, auditor, general counsel.
General manager appointed by board; manages personnel and divisions.
Personnel exempt from civil service but entitled to government benefits.

Borrow funds and issue securities to finance local water utilities.
Make loans to qualified local water utilities with certificates of conformance.
Establish uniform standards regulating water quality, construction, operation, equipment, personnel, accounting.
Review local utility rates ensuring cost recovery and debt service; appeals allowed.
Provide technical assistance and training programs; issue certificates of competence.
Issue and revoke Certificates of Conformance and Conditional Certificates.

Annual operating budget appropriated by General Appropriations Act.
Charges imposed for specific services requested by local utilities.
Revolving Loan Fund created with initial and ongoing appropriations.
Authorized to borrow domestically and internationally up to defined limits with government guarantee.
Accept reserves from local utilities for capital improvements.

Creation of Task Force and designation of Officer-in-Charge to facilitate implementation.