Ordinance No. 031-2012, Page 3
ground on all streets, public thoroughfares and public places and along or under the bridges within the limits of the said Province, water mains, pipes, conduits and all other necessary apparatus and appurtenances for the furnishing and distribution of water and sewerage system. Provided, that any public land and property, including highways. streets, bridges and public works disturbed, altered or changed hereby shall be repaired, restored and replaced in a workmanlike manner by the grantee to the satisfaction of the Department of Public Works and Highways (DPWH") or the local engineering office as the case may be, and in accordance with the existing laws and rules on excavation and reconstitution of such public works. The construction and laying of the water mains and pipes shall be done in a workmanlike manner, in accordance with the standards set by DPWH or the appropriate government agency concerned thereon. All apparatus and appurtenances used by the grantee shall be modern and first class in every respect, and the water mains, pipes and sewers shall, when laid in streets or public places, be so placed and maintained as not to interfere in any manner with the unrestricted use of such public places and streets.
SECTION 4. Term of Franchise - This Franchise shall be for a term of twenty- five (25) years from the date of effectivity of this Ordinance and shall not during said term be cancelled or suspended except for just and valid cause in accordance with the due process of law provided however, that at the end of the said period, this franchise shall be renewable for another twenty five (25) years, unless otherwise provided by law.
SECTION 5. Rates for Services - The charges and rates for the services that the grantee shall offer to the public shall be subject to the approval of the proper government agency concerned therein.
SECTION 6. Acceptance and Compliance - Acceptance of this franchise shall be given in writing within thirty (30) days after the effectivity of this Ordinance. Upon giving such acceptance, the grantee shall exercise the privileges granted under this Ordinance. Non-acceptance shall render the franchise void.
SECTION 7. Warranty in Favor of the province of La Union - The grantee shall hold the province of La Union harmless from all claims, accounts, demands or actions arising out of accidents or injuries, whether to property or to persons, caused by the construction or operation of the pipelines of the grantee.
SECTION 8. Reportorial Requirement - The grantee shall submit an annual report to the Sangguniang Panlalawigan of La Union on its compliance with the terms and conditions of the franchise and on its operations within sixty (60) days from the end of very year.
SECTION 9. Sale, Lease, Transfer, Usufruct, Etc. - The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or entity, nor merge with any other corporation or entity without the prior approval of the Sangguniang Panlalawigan of the Province of La Union. Neither shall the controlling interest in the grantee be transferred, whether as a whole or in parts and whether simultaneously or contemporaneously, to any such person, firm, company, corporation or entity without the prior approval of the Sangguninag Panlalawigan of the province of La Union, except when the transfer is done: (a) through a stock exchange transaction; (b) for purposes of qualifying persons for election to the board; and (c) to a corporation that is controlled by the same stockholders as that of the grantee. Any person or entity to which this franchise is validly sold, transferred or assigned shall be subject to all the same conditions, terms, restrictions and limitations of this Ordinance.
SECTION 10. Tum - over of Assets - After the expiration of the franchise, the assets, equipment, contracts and properties of the grantee may be turned over or
