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Chapter 1-Title SEC.4. Title. The provisions of this Title shall be known and referred to as the "Local Water District Law." Chapter II - Purpose and Formation SEC.5. Purpose. Local water district may be formed pursuant to this Title for the purpose of (a) acquiring, installing, improving, maintaining and operating water supply and distribution systems for domestic, industrial, municipal and agricultural uses for residents and lands within the boundaries of such districts, (b) providing, maintaining and operating wastewater collection, treatment and disposal facilities, and (c) conducting such other functions and operations incident to water resources development, utilization and disposal within such districts, as are necessary or incidental to said purpose. SEC.6. Formation of District. This Act is the source of authorization and power to form and maintain a district. Once formed, a district is subject to the provisions of this Act and not under the jurisdiction of any political subdivision. For purposes of this Act, a district shall be considered as a quasi-public corporation* performing public service and supplying public wants. As such, a district shall exercise the powers, rights and privileges given to private corporation under existing laws, in addition to the powers granted in, and subject to such restriction imposed under, this Act. To form a district, the legislative body of any city, municipality or province amended by Sec. 1,PD 1479). (a) The name of the local water district, which shall include the name of the city, municipality, or province, or region thereof, served by side system, followed by the words "Water District." (b) A description of the boundary of the district. In the case of a city or municipality, such boundary may include all lands within the city or municipalities, cities or provinces, or portions thereof: Provide, That such municipalities, cities or provinces, or portions thereof, cover a contagious area. (As amended by Sec. 2, PD 768) (c) A statement completely transferring any and all waterworks and/or sewerage facilities managed, operated by or under the control of such city, municipality or province to such district upon the filing of resolution forming the district. (As amended by Sec. 2 PD 768: Sec. 1,PD 1479) (d) A statement identifying the purpose for which the district is formed, which shall include those purposes outlined in Section 5 above. (e) The names of the initial directors of the district with the date of expiration of the term of office for each which shall be on the 31st of December of first, second, or third even-numbered year after assuming office, as set forth in Section 11 hereof. (As amended by Sec. 2, PD 768) (f) A statement that the district may only be dissolved on the grounds and under the conditions set forth in Section 45 of this Title. (i) A statement acknowledging the powers, rights and obligations as set forth in Section 25 of this Title. Nothing in the resolution of formation shall state or infer that the local legislative body has the power to dissolve, alter of affect the district beyond that specifically provided for in this Act. If two or more cities, municipalities or provinces, or any combination thereof, desire to form a single district, a similar resolution shall be adopted in each city, municipality and province; or the city, municipality or province in which 75% of the total active service connections are situated shall pass an initial resolution to be concurred in by the other cities, municipalities or provinces. (As amended by Sec. 2, PD 768) SEC.7. Filing of Resolution. A certified copy of the resolution or resolutions forming a district shall be forwarded to the office of the Secretary of the Administration. If found by the Administration to conform to the requirement of Section 6 and the policy objectives in Section 2 the resolution shall be duly field. The district shall be deemed duly formed and existing upon the date of such filing stamp of the administration shall be maintain in the office of the district. Upon such filing , the local government or governments concerned shall lose ownership, supervision and control or any right whatsoever over the district except. Ax provided herein ( As amended by Sec. 3, PD 768) CHAPTER
III - Directors SEC. 9. Appointment. The appointing authority shall appoint board members. Said appointments shall be made from a list of nominees, if any, submitted pursuant to Section 10. If no nominations are submitted, the appointing authority shall appoint any qualified person of the category to the vacant position. SEC. 10. Nominations. On or before October 1 of each even-numbered year, the secretary of the district shall contact each known organization, association, or institution being represented by the director whose term will expire on December 31 and solicit nominations from these organizations to fill the position for the ensuing term. One nomination may be submitted in writing by each organizations to the secretary of the district on or before November 1 of such year. The list of nominees shall be transmitted by the secretary of the district to the office of the appointing authority on or before November 15, or such year and he shall make his appointment from the list submitted on or before December 15. In the event the appointing authority fails to make his appointments on or before December 15, section shall be made from said list of nominees by majority vote of the seated directors of the district constituting a quorum. Initial nominations for all five seats of the board shall be solicited by the legislative body or bodies at the time of adoption of the resolution forming the district. Thirty days thereafter. A list of nominees shall be submitted to the provincial governor in the event the resolution forming the adoption of the district is by the city or municipal board of councilors, who shall select the initial directors there from within 15 days after receipt of such nominations. SEC, 11. Term of Office. Of the five initial directors of each newly formed district, two shall be appointed for a maximum term of two years, two for a maximum term of four years, and two years, one for a maximum term of six years. Term of office of all directors in a given district shall be such that the term of at least one director, but not more than two, shall expire on December 31 of each even-numbered year. Regular terms of office after the initial terms shall be for six years commencing on January 1 of odd-numbered years. Directors may be removed for a cause only, subject to review and approval of the Administration. (As amended by Sec.5, PD 768) SEC,12. Vacancies. In the event of a vacancy in the Board of Directors occurring more than six months before expiration of any director's term, the remaining directors shall within 30 days, serve notice to or request the secretary of the district for nominations and within 30 days thereafter a list of nominees shall be submitted to the appointing authority for his appointment of a replacement directors from the list of nominees. In the absence of such nominations, the appointing authority shall make such appointment. If within 30 days after submission to him of a list of nominees the appointing authority fails to make an appointment, the vacancy shall be filled from such list by majority vote of the remaining members of the Board of Directors constituting a quorum. Vacancies occurring within the last six months of an unexpired term shall also be filled by the Board in the above manner. The thus appointed shall serve the unexpired term only. (As amended by Sec, 12. PD 768) SEC,
13. Compensation. Each director shall receive a per diem, to be determined by
the Board, for each meeting of the Board actually attended by him, but no director
shall receive per diems in any given month in excess of the equivalent of the
total per diem of four meetings in any given month. No director shall receive
other compensation for service to the district. SEC.14. Personal Liability. No director may be held to be personally liable for any action of the district. Chapter 1V - The Board SEC.15. Organizational Meeting The Board shall hold its first meeting as soon as practicable after appointment of the first directors, and not later than 45 days after formation of the district. At said first meeting of the district Board, and thereafter at the first meeting of each odd-numbered years, the Board shall elect a chairman, a vice-chairman, a secretary and a treasurer. Such secretary and treasurer may, but need not be members of the Board, and the offices of the secretary and treasurer may be held by the same person. SEC.16. Quorum. A majority of the Board present in person shall constitute a quorum for the transaction of business; Provided, however, That no resolution or motion shall be adopted or become effective without the affirmative vote of a majority of the authorized number of members of the Board. Chapter V - Powers and Duties of the Board SEC.17. Performance of District Powers. All powers, privileges, and duties of the district shall be exercised and performed by the through the Board: Provided, however, That any executive, administrative or ministerial power shall be delegated and delegated by the Board to officers or agents designated for such purpose by the Board. SEC.18. Functions Limited to Policy-Making. The functions of the Boards shall be to establish policy. The Board shall not engage in the detailed management of the district. SEC.19. By Laws. At its first meeting, the Board shall adopt, and may thereafter from time to time amend by laws for the operation of business and affairs of the Board and the district. By-Laws my not be amended without 30 days public notice to that effect, and a public hearing held. SEC.20. System of Business Administration. The Board shall, as soon as practicable, prescribe and defined by resolution a system of business administration and accounting for the district, which shall be patterned upon and conform to the standards established by the Administration. Auditing shall be performed by a certified public accountant not in the government service. The Administration may, however, conduct annual audits of the fiscal operations of the district to be performed by a auditor retained by the Administration. Expenses incurred in connection therewith shall be borne equally by the district and the Administration. (As amended by Sec.8, PD 768) SEC.21, Depository. The district's depository shall be the Philippine National Bank, unless use of such bank in impractical: Provided, however, That any and all reserve with the Administration. SEC.22, Contracts. All contracts of the district shall be entered into by or pursuant to authority of the Board: Provided, however, That the Board may by resolution delegate and redelegate to officers or agents of the district under conditions and restrictions as shall be fixed by the Board, the power to bind the district by contract. Chapter VI - Officers and Employees SEC.23. The General Manager. At the first meeting of the Board. Or as soon thereafter as practicable, the Board shall appoint, by a majority vote, a general manager and shall define his duties and fix his compensation. Said officer shall serve at the pleasure of the Board. (As amended by Sec.9, PD 768) SEC.24. Duties. The duties of the General Manager and other officers shall be determined and specified from time to time by the Board. The General Manager, who shall not be a director; shall have full supervision and control of the maintenance and operation of water district facilities, with power and authority to appoint all personnel of the district: Provided, That the appointment of personnel in the supervisory level shall be subject to approval by the Board. (As amended by Sec.10, PD 768) Chapter VII - Powers of Districts SEC.25. Authorization. The district may exercise all the powers which are expressly granted by this Title or which are necessary, implied from, or incidental to the powers and purposes herein stated. For the purpose of carrying out the objectives of this Act, a district is hereby granted the power of eminent domain, the exercise thereof shall, however, be subject to review by the Administration. (As amended by Sec. 4, PD 1479) SEC.26. Acquisition of Waterworks. The district may purchase, construct, or otherwise acquire works, water, water rights and privileges useful or necessary to convey, supply, store, collect, threat, dispose of or make other use of water for any purpose authorized by this Title. In the acquisition of water or water rights the district shall cooperate with existing agencies of the government of the Philippines. (As amended by Sec.5, PD 1479) SEC.27.
Sale of Water. The district shall have the power to sell water pursuant applicable
rules and regulations, to any person for use within the district. As a condition
of such sale, the district may require the filing of a written application for
service, payment of established chargers or deposit and execution of a water service
contract. SEC.28. Sewerage. A district may, require, construct, operate and furnish facilities and service, within or without the district, for the collection, treatment and disposal of sewerage, waste, and storm water. The district may only furnish such service outside the district by means of facilities designed primarily to serve inside the district. Upon providing a sewer system in any area of the district, the district may acquire all buildings used by human beings to be connected to the sewer system within such reasonable times as may be prescribed by the district, provided that the property upon which such building to be connected stands is located within 35 meters of an existing main of the district's sewer system. The district may declare the further maintenance or use of cesspools, septic tanks, or other local means of sewerage disposal in such area to be a public nuisance and, after notice in writing of at least 10 days, deprive said property owner of any and all services provided by the district, which sanction may be co-extensive with the period during which the property owner persists in refusing to connect with the district's sewer system. (As amended by Sec.5, PAD 1479) SEC.29. Rights of Way. The right of way is hereby granted to locate, construct and maintain works of the district on any land which is now, or hereafter may be, owned by the Government of the Philippines or by any of its political subdivisions, and/or instrumentalities. A district may construct any works along, under or across any street, watercourse, railway, or conduct in any manner, which will afford security for life and property. Provided, That in planning any such works, the environmental aspects shall also be considered. (As amended by Sec.5, PD 1479) Sec.30. Contracts. A district shall have the power to enter into contract with any person for the purpose of performing any function of the district: Provided, That the Board of Directors may not by contract delegate any of the discretionary powers vested in the Board by the Title. Specifically, but without limiting said general power, a district may enter into the following contracts: (a) Cooperation. Agreement with the Government of the Philippines or any its agencies or political subdivisions for the cooperative or joint performance of any function of the district. (b) In-Lieu Share. As an incident to the acquisition of the existing water system of a city, municipality, or province, a district may enter into a contract to pay in-lieu share for such utility plant, an annual amount not exceeding three percent (3%) of the district's gross receipts from water sales in any year: Provided, however, That no contract of this nature shall be executed during the first five years of the existence of the district; and Provided, further, That the Board of Directors shall determined that such contract will not adversely affect or impair the fiscal positions and operations of the district as verified by the Administration. (As amended by Sec.11, PD 768: Sec.5, PD 1479) (c) MWSS Agreement. In the event the city, municipality or province has not reached agreement with the Metropolitan Waterworks and Sewerage System pursuant to Section 15 and 17 of R.A. 6234, a district, may, with the consent of the local government, act for and in behalf of the local interests in negotiating and executing of MWSS involvement in the operation of the water system. SEC.31. Protection of Waters and Facilities of District. A district shall have the right to: (a) Commence, maintain, intervene in, defend and compromise actions or proceedings to prevent interference with or deterioration of water quality or the natural flow of any surface, stream or ground water supply which may be used or useful for any purpose of the district or be a common benefit to the lands or its inhabitants. The ground water within a district is necessary to the performance of the district's powers and such district is hereby authorized to adopt rules and regulations subject to the approval of the National Water Resources Council governing the drilling, maintenance and operation of wells within its boundaries for purposes other than single family domestic use on overlaying land. Any well operated in interference with the water of the district. (b) Require a develop or builder of any structure within the service areas of the district to extend or connect its pipeline facilities to the district facilities whenever such development or structure is within one hundred meters of existing district facilities of whenever the district is willing to extend its facilities within one hundred meters of said development or structure. For the purpose of this section, development shall include the subdivision of land for any purpose other than agricultural purpose, and structure shall mean any building of facility to be used for residential, commercial or industrial purpose. (c) Prohibit any person, firm or corporation from vending, selling, or otherwise disposing of water for public purposes within the service area of the district facilities are available to provide such service, or fix terms and conditions by permit for such sale or disposition of water. (d) Safeguard and protect the use its waters. For this purpose, any person who installs any water connection without the previous authority from the water district established under this Decree; tampers water meters or uses jumpers or other devices whereby water is stolen; steals or pilfers water or water meters; knowingly possesses stolen or pilfers water or water meters shall upon conviction, be punished by prision correccional in its minimum period or a fine ranging from two thousand pesos to six thousand pesos, or both. If the violation is committed with the connivance or permission of an employee or officer of the water district, an employee or officer shall, upon conviction, be punished by a penalty one degree lower than prision correccional in its minimum period and forthwith be dismissed and perpetually disqualified from employment in any utility or service company owned or controlled by the government. (As amended by Sec.6, PD 1479) (e) Take over the management, administration, operation, and maintenance of all watersheds within its territorial boundaries. (As amended by Sec.6, PD 1479) SEC.32. Fire Protection Capacity. The district may install and maintain pipeline capacity and additional hydrants for fire protection purposes: Provided, That prior agreement gas been executed with the public entity having principal fire protection responsibility within the district whereby the district will be reimbursed over the reasonable life of said facilities for the cost of installation and operation of such fire protection capacity and facilities. (As amended by Sec.7, PD 1479) Chapter VIII - Financial Provisions SEC.33. Receipt, Deposit and Payment of District Funds. The treasures shall receive, to the credit of the district and in trust for its use benefit, all monies belonging to the district. All monies belonging to the District shall, where practicable, be deposited by the treasurer in the Philippine National Bank. (As amended by Sec.13, PD 768; Sec.7, PD 1479) SEC.34. Bonds or Other Evidence of Indebtedness. A district may borrow money to raise funds to pay all cost of any public improvement authorized by this Title and may issue negotiable or no-negotiable bond, promissory notes or other evidence of indebtedness to support such borrowings. These obligations may be secured by a mortgage, pledge, deed or trust or any other encumbrance upon any of its then owned or afteraquired real or personal property, assets or revenues and the same shall constitute a lien as to the principal and interest thereon, on all such property, assets or revenues. The interest on such bond or notes are exempt from collect assessment, or stand-by charges based upon available capacities or upon selected characteristics of property benefited by said improvements, as determined by the Board. Said characteristics may include, but not limited to, the effective length of property counting upon the proposed improvement or, in terms of the area contained within the boundary of said property. Said assessment, if unpaid, shall be and constitute a lien on the land assessed. (As amended by Sec.18, PD 768; Sec.7, PD 1479) SEC.14. Disposition of Income. The income of the district shall be disposed of according to the following priorities. First, to pay its contractual and statutory obligations and to meet its essential current operating expenses, Second,
to allocate at least fifty percent (50%) of the balance exclusively Third, to allocate the residue as a reserve exclusively for expansion and improvement of its physical facilities. (Sec.8, PD 1479) Chapter X - Changes in Organization SEC.42.
Exclusion of a Territory. Any territory within the boundary of SEC.43.
Annexation and Deannexation. The Administration may, after SEC.44.
Consolidation and Joint Operation. The Administration may SEC.45,
Dissolution. A district may be dissolved by resolution of its Chapter XI - Protection to Districts SEC.46. Exemption from Taxes. A district shall (1) be exempt from paying income taxes, and (2) shall be exempt from payment of (a) all National Government local government and municipal taxes and fees, including any franchise, filing, recordation, license or permit fees or taxes and any fees, charges or costs involved in any court or administrative proceeding I which it may be a party and (b) all duties or imposts on imported machinery, equipment and materials require for its operations. (As amended by Sec.20, PD 768) SEC.47. Exclusive Franchise. No franchise shall be granted to any other person or agency for domestic industrial or commercial water service within the district or any portion thereof unless and except to the extent that the Board of Directors of said district consents thereto by resolution duly adopted, such resolution, however, shall be subject to review by the Administration. (As amended by Sec.20, PD 768; Sec.9, PD 1479) *Subject to Philippine Supreme Court en banc decision of September 13, 1991 declaring water districts as "government owned or controlled corporations with original charter." (Davao City Water Distict et.al. vs. Civil Service Commission et.al.) NEXT TOP | ||