Business and Investment Code of the City of Lapu-lapu, Cebu, Philippines

April 13, 2016 Excerpt from the Minutes of the 127th Regular Session of the 13th Sangguniang Panlungsod of the City of Lapu-Lapu Held at the Session Hall on April 13, 2016. LAPU-LAPU CITY RESOLUTION NO. 13-2613-2016 After due deliberation, the Sangguniang Panlungsod of the City of Lapu-Lapu, on motion of Hon. Florito T. Pozon and adopted in mass motion, RESOLVED, to enact, as it is hereby ENACTED the following: LAPU-LAPU CITY ORDINANCE NO. 13-209-2016 BUSINESS AND INVESTMENT CODE OF THE CITY OF LAPU-LAPU PRELIMINARY MATTERS SECTION 1. Title . This code shall be known as the Business and Investment Code of the City of Lapu-lapu, Cebu, Philippines. SECTION 2. Effectivity . This code shall take effect on January 1, 2016. SECTION 3. Scope . This code covers all rules and regulations of business hitherto applied and used in this city and those incentives which are designed to entice investments to be poured into this city. SECTION 4. Liberal Interpretation. All provisions of this code shall be construed and interpreted liberally in order to achieve the announced policies. Whenever any part hereof is capable of being construed in at least two different ways, that construction that helps promote business shall be favored. SECTION 5. Policy Direction . The orientation of Lapu-lapu City is towards attracting different business and investment models in order to achieve the distinction of being the "historic resort city" of southern Philippines. CHAPTER ONE Investment Concerns ARTICLE I Tourism SECTION 6. Orientation . The City of Lapu-lapu, lies as the strategic gateway towards central and southern Philippines. It is the location of the sprawling Mactan Cebu International Airport (MCIAA) and the home of the finest international resort hotels. It is thus inescapable that this city shall hitch its star in the known traditions and best practices of international and domestic tourism. SECTION 7. Declaration of Policy . It is hereby declared to be the policy of the City of Lapu-Lapu to actively pursue the programs and projects of the Department of Tourism and the Philippine Tourism Authority and to initiate each own program of history, traditions and natural beauty, and as instrument of accelerating and development of the City of Lapu-Lapu. ( Section 2, Ordinance No. 17-95, S. of 1995; Section 1, Ordinance No. 02-2001, S. of 2001) . SECTION 8. Creation of Lapu-Lapu City Tourism, Cultural and Historical Affairs Commission. To carry out the above policies, the aforesaid Commission is hereby created, which shall be under the Office of the City Mayor. (Section 3, Ordinance No. 643, S. of 1991; Section 1, Ordinance No. 6, S. of 1992; Section 3, Ordinance No. 17-95, S. of 1995; Section 2, Ordinance No. 02-2001, S. of 2001). SECTION 9. General Purpose . The Commission shall have the following general purposes: a. To act as the implementing arm of Lapu-Lapu City government in the achievement of policies and programs for the development, promotion of Culture, History and Arts of Cebu and the supervision of tourism, in collaboration with the Department of Tourism, the Philippine Tourism Authority and other agencies, persons, or entitles concerned with tourism. b. To promote the development of areas with potential tourism value, otherwise known as "tourists zones" including the preservation and/or restoration of Lapu-Lapu City monuments, historical landmarks and other tourist attractions. c. To serve as the liaison of the City Government agencies involved in cultural development and historical promotion including the development of a cultural/tourism museum depicting in photos, antiques, costumes, etc.,the history, cultural development, achievement, etc.,of the community. d. To undertake fund raising projects and to accept donations from any and all sources for the cultural and historical development of the city; e. To do any and all acts necessary, convenient or expedient to carry out the purposes for which the Commission is created and which are not violate of any law. (Section 2, Ordinance No. 643, S. of 1991; Section 4, Ordinance No. 17-95, S. of 1995; Section 3, Ordinance No. 02-2001, S. of 2001) . SECTION 10. Specific Functions and Powers . In the furtherance of the aforestated purposes, and insofar as they do not encroach the powers and prerogatives of the Department of Tourism and the Philippine Tourism Authority, the Commission shall be charged and vested with the following functions and powers: a. To undertake studies on natural tourism resources and potentialities of the City of Lapu-Lapu and oversee the tourism projects and allied activities and to assist the city to actively pursue the programs and projects of the DOT and PTA in order to achieve for the advancement and development of tourism; b. To formulate a tourism development plan for the City of Lapu-Lapu in collaboration with the Department of Tourism and the Philippine Tourism Authority such as but not limited to developing and promoting regular food festivals, sportsfests, cultural presentations, flea markets, etc. as tourism activities; c. To coordinate with the Department of Tourism in the development of infrastructure requirements supporting a tourist zone and to that end, to monitor major road and street improvement plans particularly those that affect access to city/tour proper and tourist spots, and to seek government action where it may be urgently needed; d. In coordination with the City Planning Board and Department of Planning and Development, as well as other appropriate agencies, to formulate and implement zoning regulations within a tourist zone; e. To recommend to the City Mayor to engage or retain and pay for the services of any professional or technical assistance from the private or government sectors; f. To undertake fund raising campaigns such as cultural and benefit shows, etc. and to accept donations from any and all sources for city tourism development; and g. To do any and all acts necessary, convenient or expedient to carry out the purposes for which the commission is created and which are not violative to any law; h. To oversee maintenance and upkeep of public toilets and comfort areas inside restaurants, hotels, gas stations, movie houses, bus stations, airports, etc. (Section 2, Ordinance No. 643, S. of 1991; Section 4, Ordinance No. 17-95, S. of 1995; Section 4, Ordinance No. 02-2001, S. of 2001). SECTION 11. Composition . The Lapu-Lapu City Tourism, Cultural and Historical Affairs Commission shall be composed of a Chairman and Nine (9) Members who shall be appointed by the City Mayor upon recommendation of the Chairman of the Commission, the President of the Association of Barangay Council, the Vice Chairman of the Committee on Police, Fire and Penology, Chairman of the SP Committee on Laws and Chairman of the SP Committee on Transportation. (Section 2, Ordinance No. 643, S. of 1991; Section 4, Ordinance No. 17-95, S. of 1995; Section 5, Ordinance No. 02-2001, S. of 2001; Section 1, Ordinance No. 51-2001, S. of 2001; Section 1, Ordinance No. 91-2002, S. of 2002; Section 1, Ordinance No. 340-2006, S. of 2006; Section 1, Ordinance No. 127-2008, S. of 2008) . SECTION 12. Term of Office . The term of office of the Chairman and the Commissioners shall be coextensive with the tenure of the appointing power or unless sooner terminated at the pleasure of the appointing power. (Section 6, Ordinance No. 02-2001, S. of 2001) . SECTION 13. Vacancy Before Expiration of Term . Any commissioner appointed to fill a vacancy in the Commission occurring prior to the expiration of the term for which his predecessor was appointed shall serve only for the unexpired portion of the term of his predecessor. (Section 7, Ordinance No. 02-2001, S. of 2001) . SECTION 14. Meeting . The Commission shall meet as frequently as necessary to discharge its duties and responsibilities properly, but shall meet regularly at least twice a month. The Commission shall be convoked by the Chairman on his own initiative or upon the written request of the majority of the Commissioners. The majority vote of the Commissioners constituting a quorum shall be sufficient for the adoption of any rule, resolution, decision, or any act of the Commission. (Section 10, Ordinance No. 02-2001, S. of 2001) . SECTION 15. Quorum and Effect of Vacancies . The presence of five members of the Commission, including the Chairman or the Vice-Chairman and the ex-officio member shall constitute a quorum for the transaction of the business of the Commission. Vacancies in the Commission, as long as their shall be five members in the office, shall not impair the powers of the Commission. (Section 9, Ordinance No. 02-2001, S. of 2001) . SECTION 16. Per diems . Unless otherwise fixed by the City Mayor, the Chairman and the Commissioner shall receive for every meeting attended a per diem of not more than One Thousand (P1,000.00) Pesos; provided, that such per diem shall not exceed Four Thousand (P4,000.00) Pesos per month for each Commissioner. (Section 8, Ordinance No. 02-2001, S. of 2001) . SECTION 17. Administrative Officer . The management of the business affairs of the Commission shall be entrusted to a full time executive to be known as the Administrative Officer. (Section 11, Ordinance No. 02-2001, S. of 2001) . SECTION 18. Powers and Duties of the Administrative Officer . The Administrative Officer shall have the following powers and duties: a. To executive the policies, rules, and regulations promulgated by the Commission; b. To direct, manage, and supervise the ordinary affairs of the Commission including the administrative supervision of the personnel; c. To prepare the agenda for the meetings of the Commission; d. To submit an annual report within thirty days after the close of each calendar year; e. To perform such other functions, duties and powers as may from time to time be assigned to him by the Chairman of the Commission; and To submit a bi-monthly report to the Chairman, Committee on Public Information and Tourism of the Sangguniang Panlungsod. (Section 12, Ordinance No. 02-2001, S. of 2001) . SECTION 19. Applicability of the Civil Service Law, Rules and Regulations . The Administrative Officer and all other employees of the Commission shall be subject to the Civil Service Laws, Rules and Regulations. (Section 13, Ordinance No. 02-2001, S. of 2001). SECTION 20. Tourism Economic Zone Locator . The endorsement of the application of Philippine BXT Corporation (PBC) for its 8.0231 hectare project in Maribago as a Tourism Economic Zone is hereby approved. (Section 1, Ordinance No. 124-2008, S. of 2008) . SECTION 21. Philippine BXT Corp. MOA . The Memorandum of Agreement (MOA) entered into by and between the Philippine BXT Corporation and the City of Lapu-Lapu shall be kept in the files of the Sangguniang secretary. (Section 2, Ordinance No. 124-2008, S. of 2008) . ARTICLE II Tour Guides SECTION 22. Tour Guides. After the creation of the city's tourism office, the tour guides shall be considered as the first line of promoters of the City of Lapu-lapu as a "historic resort city".This is where the importance of tour guides must be viewed and treated. SECTION 23. Definition of Terms . a. Tour guide shall mean an individual who is licensed by the local government unit to guide tourists, foreign and domestic, for a fee, commission, or any other form of lawful remuneration. (Section 1, Ordinance No. 128-A, S. of 1994; Section 2, Ordinance No. 373-2012, S. of 2012) . b. Domestic tour guide a tour guide who is a native born or naturalized Filipino citizen. c. Alien tour guide a tour guide who is a foreign national and staying in the country under an appropriate working visa. (Section 2, Ordinance No. 373-2012, S. of 2012) . SECTION 24. Mayor's Permit Fee. All persons applying or applicants for accreditation as or enjoying the privilege as accredited tourist guides issued by or procured from the Department of Tourism (DOT) for which a permit issued by the City Treasurer's Office. (Section 2, Ordinance No. 285, S. of 1989). SECTION 25. Requisites . It shall be unlawful for any person, to act as tourist guides without securing first the necessary business license and mayor's permit. In addition, all such persons applying for accreditation on tourist guides or enjoying the privilege as duly accredited tourist guides or enjoying the privilege as duly accredited tourist guides registered in the Department of Tourism (DOT),and operating within the territorial jurisdiction of the City of Lapu-lapu shall be required to secure and pay health, police and barangay clearances. (Sections 1 and 3, Ordinance No. 285, S. of 1989; Section 1, Ordinance No. 110, S. of 1993; Section 11, Ordinance No. 128-A; S. of 1994). SECTION 26. Qualifications: Who May Apply . Only Filipino citizens may qualify as tour guides (Section 2, Ordinance No. 128-A, S. of 1994; Section 3, Ordinance No. 373-2012, S. of 2012) . SECTION 27. Requirements for Issuance of Mayor's Permit. An applicant for a permit as Tour Guide, both domestic and alien, shall submit the following: General requirements : i. Certificate of good health issued by the City Health Office or any duly accredited government physician; ii. National Bureau of Investigation (NBI) Clearance; iii. Drug test result issued by the City Health Office; iv. Barangay Clearance where the applicant is residing; v. Department of Tourism (DOT) accreditation or any proof that the applicant has passed a seminar for Tour Guides duly conducted by the Department to conduct seminars provided, however, that this requirement may be waived by the undersecretary of Tourism where the applicant possesses special academic or Professional qualifications relevant to tourism; Other documents which the Office of the Mayor may require, consistent with the intent and purpose of this code. (Section 3, Ordinance No. 128-A, S. of 1994; Section 1, Ordinance No. 236-2000, S. of 2000; Section 4, Ordinance No. 373-2012, S. of 2012). SECTION 28. Foreign Tour Guides . Aliens with permanent resident status or alien with appropriate working visa, and of legal age, may be granted a license provided that they shall be able to demonstrate by appropriate document issued by their consular officials that Filipino tour guides are allowed to guide in said alien's country. (Section 2, Ordinance No. 128-A, S. of 1994; Section 3, Ordinance No. 373-2012, S. of 2012) . SECTION 29. Additional Requirements for Alien Tour Guides . i. Proof of employment with a duly licensed agency or tour operator; ii. Permit to work or registration certificate from the Department of Labor and Employment; iii. Appropriate working visa from the Commission on Immigration and Deportation; iv. Proof of reciprocity which shall consist of a certification by the proper official of the home state of the applicant alien or foreign company to the effect that the law of such state allows or permits reciprocal rights to Philippine citizens or nationals in accordance with Act No. 2103; v. Certificate of Completion of Orientation seminar by the Tourism Office, Lapu-Lapu City; vi. Clear copy of passport (with translation, if not in English). (Section 3, Ordinance No. 128-A, S. of 1994; Section 1, Ordinance No. 236-2000, S. of 2000; Section 4, Ordinance No. 373-2012, S. of 2012). SECTION 30. Deferred Reciprocity Requirement . The requirement for Proof of Reciprocity for individual qualified alien or foreign company applicant for Mayor's License as Tour Guide in the City of Lapu-Lapu shall be deferred or suspended for a period of six months (6) from the date of the approval or until such time that a reasonable number of Lapu-Lapu City residents have language of the foreign tour guide, capable, licensed and duly accredited by the Department of Tourism to act and engage in the Tour Guide business for the natives of the country of the foreign tour guide. (Section 1, Ordinance No. 259-2005, S. of 2005). SECTION 31. License Fees . Upon compliance with all the requirements of the preceding section, the license shall be issued upon payment of the following appropriate fees: Mayor's Permit Fee P500.00 Identification Card 200.00 Seminar Fee (for aliens only) 1,000.00. (Section 4, Ordinance No. 128-A, S. of 1994; Section 7, Ordinance No. 373-2012, S. of 2012) . SECTION 32. Issuance and Wearing of City Identification Card . All tour guides operating in the City shall secure an Identification Card with the Office of the City Mayor, and shall be required to wear, at all times, in the performance of their functions, the City issued Identification Card. (Section 2, Ordinance No. 110, S. of 1993; Section 8, Ordinance No. 128-A, S. of 1994; Section 5, Ordinance No. 373-2012, S. of 2012) . SECTION 33. Validity of Permits . Mayor's Permit shall be valid, as follows: A. Domestic tour guide one (1) year issued every January 1 but not later than January 31 of each and every year. B. Alien Tour guide every six (6) months issued every January 1 but not later than January 31 and every July 1 but not later than July 31 of each and every year. Failure to renew the Mayor's Permit within the period prescribed herein shall be imposed a surcharge of one hundred percent (100%) of the fee. (Section 5, Ordinance No. 128-A, S. of 1994; Section 6, Ordinance No. 373-2012, S. of 2012) . SECTION 34. Renewal of License . Applications for renewal of license shall be made between December 15 to January 15 of every year. An applicant for renewal of license as Tour Guide shall submit the same requirements for issuance of license except the Affidavit of Proof of having passed a Seminar for Tour Guides and the Proof of Reciprocity provided however ,that such affidavit shall be a requirement if applicant has been inactive or has not exercised his tour guide profession for more than two (2) years provided further that licensed tour guides shall submit copies of their latest income tax return on an annual basis. (Section 6, Ordinance No. 128-A, S. of 1994; Section 1, Ordinance No. 236-2000, S. of 2000). SECTION 35. Penalty for Failure to Renew License on Time . A surcharge of one hundred percent (100%) of the regular license fee shall be imposed on a tour guide for failure to renew his license within the period prescribed by these rules. (Section 7, Ordinance No. 128-A, S. of 1994) . SECTION 36. Grounds for Suspension of License . The following shall be sufficient grounds for the suspension of the license of a tour guide: a. Any overt act of dishonesty, misrepresentation or misconduct committed against a member of his/her tour group or against his/her employer or co-employees; b. Force tipping or contributions from tourists; c. Failure to comply with the requirement of the compulsory wearing of the ID as provided for in Section 8 hereof; and, Violation of any of the provisions of this ordinance, circulars and orders of the Department of Tourism. (Section 10, Ordinance No. 128-A, S. of 1994). SECTION 37. Grounds of Cancellation of License . The following shall be sufficient grounds for the cancellation of the license of a tour guide: a. Conviction of crime involving moral turpitude; and, b. Conviction more than once of any of the acts enumerated in the immediate succeeding section. (Section 9, Ordinance No. 128-A, S. of 1994) . SECTION 38. Procedure Governing Complaints and Hearing Before the City Attorney . The city attorney shall exercise quasi-judicial powers in the resolution of case filed against tour guides in accordance with its rules and procedures governing complaints. (Section 12, Ordinance No. 128-A, S. of 1994) . SECTION 39. Confidential Character of Certain Data . Information and documents received by or filed with the city attorney pursuant to the requirements of these rules and regulations shall be treated as confidential and shall not be divulged to any private party without the consent of the party concerned or upon order of the mayor. (Section 13, Ordinance No. 128-A, S. of 1994) . SECTION 40. Means to Carry into Effect the Purposes Intent of These Rules . If the procedure to be followed in a given situation is not specially provided for by ordinance, any suitable procedure or mode of proceeding which appears conformable to the purposes, intent and spirit of these rules shall be adopted, upon approval by the sangguniang panlungsod. (Section 14, Ordinance No. 128-A, S. of 1994) . SECTION 41. Enlistment of Aid, Assistance and Support of Order Government Agencies . In the implementation of the provisions of these rules and enforcement of orders or decisions, the city attorney, thru the city mayor, may enlist the aid, assistance and support of any and all government agencies, whether civil or military. (Section 15, Ordinance No. 128-A, S. of 1994). SECTION 42. Code of Ethics and/or Conduct . The Code of Ethics and/or Conduct promulgated by the different tour guide/travel trade associations recognized by the department shall be adopted and shall form part of these rules; Provided, that , in case of conflict between any provision of these rules and said code of ethics, the former shall prevail. (Section 16, Ordinance No. 128-A, S. of 1994). ARTICLE III Joint Ventures SECTION 43. Declaration of Policy . It is hereby declared that the policy of the City Government of Lapu-Lapu to encourage the active participation of the responsible members of the private sector as dynamic partners in the realization of the avowed pursuit of meaningful development in achieving the city's vision 2020. To ensure that genuine local autonomy is best achieved through the concerted efforts of the members of the community in particular and in the society in general, thus attaining the aspiration for a self-reliant municipal corporation and political unit through quality development and progress, which is an avowed policy of the city government. Toward these ends, the City Government of Lapu-Lapu shall enter into joint ventures or similar undertakings with any private entity or investor for the development of local enterprises engineered to increase productivity, revenues, and benefits to enhance the well-being of our people and ensure an improved quality of life. (Section 2, Ordinance No. 174-2009) . SECTION 44. Scope . This ordinance shall be applicable in the entire political and territorial jurisdiction of the city pursuant to Charter, RA 3134 as amended by RA 7160, including its municipal waters pursuant to RA 8550. SECTION 45. Purpose and Objectives . To prescribe the guidelines, rules, regulations and procedures for Joint Venture Agreements between the City Government and private entities; To encourage pooling or resources, skills, competence and expertise between the city government and private sector entities through joint ventures as a viable, efficient and practical alternative in development goals of the government; and, To ensure that all JV agreements are entered into under the policy that all government contracts shall be awarded through a competitive, accountable and transparent process. (Section 4, Ordinance No. 174-2009) . SECTION 46. Definition of Terms . The terms shall have its respective definitions for purposes of this ordinance. a. Joint venture (JV for brevity) shall refer to that contractual arrangement whereby a private sector entity or group of private sector entities on one hand, and the city government on the other hand, contribute money, capital, services, assets (including equipment, land or intellectual property),or a combination of any or all of the foregoing. Parties to a JV share risks to jointly undertake an investment activity in order to accomplish a specific, limited or special group or purpose with the end in view of facilitating private sector initiative in a particular industry or sector, and eventually transferring ownership of the investment activity to the private under competitive market conditions. It involves a community of pooling of interests in the performance of the service, function, business or activity, with each party having a right to direct and govern the policy in connection therewith, and with a view of sharing both profits and losses, subject to agreement by the parties. A JV may be contractual JV or a corporate JV. b. JV company/corporation refers to an entity registered with the Securities and Exchange Commission (SEC) by the JV partners that shall perform the primary functions and obligations of the JV as stipulated under the JV agreement. The JV company shall possess the characteristics stipulated under these guidelines. c. Contractual JV refers to a legal and binding agreement under which the JV partners shall perform the primary functions and obligations under the JV agreement without forming a JV company. d. JV activity refers to the kind of joint venture arrangements approved by the city government, it could either be a JV company or a contractual JV. e. Competitive selection refers to a process of selection of a JV partner(s) based on transparent criteria, which should not constrain or limit competition, and is open to participation, by any interested and qualified entity. f. Competitive challenge refers to an alternative selection process wherein third parties shall be invited to submit comparative proposals to an unsolicited proposal. Accordingly, the private sector entity that submitted the unsolicited proposal is accorded the right to match any superior offers given by a comparative private sector participant. g. Negotiated projects refer to instances where the desired project is the result of an unsolicited proposal from a private sector proponent or, if the government has failed to identify as eligible private sector partner for a desired activity after subjecting the same to a competitive selection. h. Unsolicited proposal refers to project proposals submitted by the private sector to undertake infrastructure or development projects without a formal solicitation issued by the city government. These projects may be entered into by the city on a negotiated basis, provided however, that there shall be no direct government guarantees for JVs resulting from an unsolicited proposal. i. City government projects refer to any of the following projects for joint ventures with the private sector delivery of certain basin services; capability-building and livelihood projects; development of local enterprises designed to improve productivity and income; diversification of agriculture, rural industrialization; promotion of ecological protection and balance; enhancement of the economic and social well-being of the people; and/or any other project for the promotion and protection of the general welfare of the community. j. JV resolution pertains to the measure issued by the Sanggunian, which authorizes the local chief executive concerned to negotiate with private sector participant. (Section 5, Ordinance No. 174-2009) . SECTION 47. General Principles. Any and all joint venture arrangements entered into by the city government with private entities must be consistent with the following principles: (a) The City of Lapu-Lapu, as local government unit and as a territorial and political subdivision of the state enjoys local autonomy and fiscal autonomy; (Section 3.1, Ordinance No. 174-2009) . (b) The City of Lapu-Lapu is a public corporation, existing and operating in its governmental and proprietary capacities, thereby making them both agents of change and progress, and therefore accountable to the state and to its constituents; (Section 3.2, Ordinance No. 174-2009) . (c) The City of Lapu-Lapu is set out to evolve into a self-reliant community, as envisioned by the Constitution, through the implementation of its plans, programs and projects as contemplated in its Vision 2020 objectives, with the active participation of the private sector; (Section 3.3, Ordinance No. 174-2009) . (d) The City of Lapu-Lapu may acquire, develop, lease, encumber, alienate or otherwise dispose of real or personal property held in its proprietary capacity, and to apply its resources and assets for productive, developmental, or welfare purposes, in the exercise or furtherance of its governmental or proprietary powers and functions, and thereby ensure its development into a self-reliant community, and be active participants in the attainment of the national goals; (Section 3.4, Ordinance No. 174-2009) . (e) The City of Lapu-Lapu enjoys full autonomy in the exercise of its proprietary functions and in accordance with the limitations set forth in the Local Government Code of 1991 or RA 7160 and other applicable laws; (Section 3.5, Ordinance No. 174-2009) . (f) The City of Lapu-Lapu shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its efficient and effective governance of the general welfare of its people; (Section 3.6, Ordinance No. 174-2009). (g) The City of Lapu-Lapu may collaborate, coordinate or cooperate with government-owned or controlled corporations, government corporate entities and other government instrumentalities for the implementation of national, regional and local projects; (Section 3.7, Ordinance No. 174-2009) . (h) The creation of the joint venture arrangement should not prevent potential players from profitably entering into business ventures/markets; (Section 3.8, Ordinance No. 174-2009) . (i) The cost of producing the particular product, activity, or service should be efficient or potentially efficient towards earning profits for the City of Lapu-Lapu and the market player/private sector partner; (Section 3.9, Ordinance No. 174-2009) . (j) There should be no unnecessary barriers for the City's withdrawal of its contribution to the joint venture; (Section 3.10, Ordinance No. 174-2009) . (k) The city's role as a regulator of the business of the Joint Venture should be clearly and explicitly delineated from its role as implementor of the business to avoid conflicts of interest; (Section 3.11, Ordinance No. 174-2009) . (l) The City of Lapu-Lapu shall, at all times, enjoy and exercise full political and territorial jurisdiction and authority, notwithstanding its extent of interest in the JV Company as well as the private entities in the contractual JV; (Section 3.12, Ordinance No. 174-2009) . (m) As differentiated from projects procured under the Official Development Assistance (ODA),Build Operate and Transfer Law (BOT) and Government Procurement Reform Act (GPRA) where ownership of the asset/business will stay with the LGU, Joint Venture Agreements allow the private sector to take over the undertaking of the projects in its entirety after the city divests itself of any interest in the Joint Venture; (Section 3.13, Ordinance No. 174-2009) . (n) Accountability for the joint venture project ultimately devolves on the city government involved in the JV agreements and the implementation of the JV project. The private parties dealing with the LGUs are similarly held accountable for all of its actions relative thereto. (Section 3.14, Ordinance No. 174-2009) . SECTION 48. General Guidelines . JV agreements entered into shall consider the following parameters: a. Investments in the JV company or JV agreements made and entered into by the city government with the private parties shall redound and relate directly to the city government's avowed corporate objective, purpose and vision; b. The JV should be clear in its intent to undertake a specific activity, which is responsive to the development goals and objectives of the city government and the national government; c. City government may collaborate with government corporation or entities for the purpose of undertaking JV arrangements with the private sector; d. The JV should not crowd or tend to crowd out private sector initiative in a particular industry or sector; e. The local chief executive is hereby authorized/empowered to issue as he shall issue a negative list of industries or sectors on a regular basis or as the need arises, where the formation of the JV is likely to crowd out private sector initiatives. (Section 6.1, Ordinance No. 174-2009) . SECTION 49. JV Company . The preferred mode of implementing a JV agreement shall be through a JV company to be formed by the city government and the private sector entity, under the following parameters: (Section 6.2, Ordinance No. 174-2009) . a. The JV company shall be registered as a stock corporation in accordance with the provisions of the Corporation Code, as amended, and the prevailing and applicable rules and regulations promulgated by the Securities and Exchange Commission; (Section 6.a, Ordinance No. 174-2009) . b. Ownership and nationality requirements under the constitution and other pertinent laws should be complied with; provided, that the aggregate public sector equity contribution in the JV company shall only be less than fifty percent (50%) of the outstanding capital stock of the latter. The city government's contribution may be through assets (including money, equipment, land, intellectual property or anything of value) which shall be subject to valuation by the Local Appraisal Committee and approved by the Commission on Audit or its duly authorized representative. For as long as the city government is involved in the JV undertaking, the private sector party shall not sell/transfer its interest in the JV company without the express written consent of the city government; (Section 6.2 (b),Ordinance No. 174-2009) . c. The city government shall be represented in the board of the JV company in proportion to its investment with one representative preferably coming from the local finance committee, in case the representation is more than one seat; (Section 6.2 (c),Ordinance No. 174-2009). d. The JV company shall be permitted to derive income from the activities authorized under the JV agreement during the term thereof. The city government and the private sector partner shall be entitled to receive dividends and/or any other form of share from the net profits earned by the JV company in accordance with the JV agreement. The determination of net profits shall be subject to a verification process for allowable operations and management expenses specified therein; (Section 6.2 (d),Ordinance No. 174-2009) . e. The JV company is encouraged to stipulate a fixed period for the participation of the city government's objective in pursuing the investment, or when the private sector partner is projected to be able to proceed with the JV project without further need of LGU support. Further, the withdrawal of the city government's contribution or investment before the expiration of the said period is likewise encouraged; provided, that the divestment is made through competitive selection, initial public offering (IPO),or any other means that promote competition, fairness and transparency. The foregoing factors shall be accorded greater importance than the financial impact or financial benefit of the propose investment to the city government. (Section 6.2 (e),Ordinance No. 174-2009) . SECTION 50. Guidelines in Documentation . In drafting the incorporation document of the JV company and other contracts governing the relationship between the city government and the private sector participant, the parties should consider the following guidelines: i. Clearly defined business objectives; ii. Specified degree of participation and the management roles of each party in the JV project; iii. Defined contribution of capital and ownership rights to property; iv. Specified division of profits and losses; v. Identified dispute mechanism to avoid management impasses that may produce deadlock or litigation; vi. Specified termination/liquidation of the JV company and indicate buy-out provisions; vii. Specified confidentiality terms; viii. Stipulated indemnification mechanism. (Section 6.2 (f),Ordinance No. 174-2009) . SECTION 51. Contractual Agreement, an Alternative . If the formation of a JV company is not the best mode to implement a JV project as determined by the city government, it may opt to implement the joint venture project through a contractual agreement. Prior to entering into a contractual JV, the parameters similar to those governing JV companies under Section 6 (f) herein are to be observed. (Section 6.3, Ordinance No. 174-2009) . SECTION 52. Procedure for Entering into JV Agreements . Prior to the start of the selection process, the proposed joint venture activity shall be approved in principle by the local chief executive, in accordance with the procedure stipulated hereunder. (Section 7, Ordinance No. 174-2009) . SECTION 53. Built-in Conditions . For JV agreements, regardless of the costs, local chief executive shall have the full authority to approve the proposed Joint Venture activity in principle, subject to the compliance with the conditions listed below: a. Justification that the subject of the JV activity is well within the city government's interest and mandate; b. Clear description of the proposed investment, including the activities, objectives, extent and nature of the proposed participation of the city government, funding source or set-up, period of participation of the city government, the relevant terms and conditions of the undertaking under the proposed JV agreement, among others; c. Justification as to the responsiveness and necessity of the project or the rationale of the relative priority of the proposed JV project, in a meeting local, national or specific developmental goals and objectives; and, All other components of the JV agreement, including the technical, financial, legal and other aspects in determining the over-all feasibility of the proposed JV project, among others, shall be established. (Section 7.1, Ordinance No. 174-2009) . SECTION 54. Modes of Selecting a JV Partner . a. Competitive selection the process for the conduct of competitive selection, contract award, and final approval shall be stipulated under the detailed guidelines and procedures for competitive selection for private JV partners, which is Annex "A" of these guidelines. In the conduct of the competitive selection process, the city government shall ensure that: i. All activities during the competitive selection process, award, and final approval are conducted in the transparent and competitive process that promotes accountability and efficiency; and, ii. The competitive selection parameters are clearly defined and shall include the parameters as approved by the local chief executive. b. Negotiated agreements negotiated agreements may be entered into under any of the following circumstances: i. When the city government receives an unsolicited proposal; ii. Where there is failure of competition when no proposals are received or no private sector participant is found qualified and the city government decides to seek out a JV partner; iii. When there is a failure of competition, i.e. ,there is only single interested party remaining as defined under VIII (6) of Annex "A" of this ordinance. In the case of subsection b (iii) above, the procedures outlined in the limited negotiation procedures in case of failed competitive selection under Section 6 of Annex "A" of the guidelines, which is Annex "B" of the ordinance, shall apply. Subsections b (i) and b (ii) shall be governed by the rules under the detailed guidelines for competitive challenge type procedure city government private entity joint ventures, which is Annex "C" of this ordinance. (Section 7.2, Ordinance No. 174-2009) . SECTION 55. Deviations and Amendments to the JV Agreement . The city government shall not proceed with the award and signing of the contract if there are material deviations from the parameters and terms and conditions set forth in the proposal/tender documents that tend to increase the financial exposure, liabilities, participation and risks of the city government, or any other factors that would cause prejudice to the losing private sector participants. Such material deviations and amendments shall be subjected to the approval requirements under Section 7.1 hereof. The local chief executive shall be responsible for compliance with this policy. Violation of this provision shall render the award and/or the signed JV agreement invalid. (Section 7.3, Ordinance No. 174-2009) . Any amendment to a JV agreement after award and signing of contract, which does not materially affect the substance of the competitive selection, shall be subjected to the requirements stipulated under Section 7 hereof. Non-compliance with the corresponding approval process shall render the amendment null and void. (Section 7.3, Ordinance No. 174-2009) . SECTION 56. Reporting Requirement . During the course of implementation of the JV agreement, the office of the city mayor shall submit an annual report to the Sangguniang Panlungsod of Lapu-Lapu for monitoring purposes. The annual report shall be submitted within the first quarter of the succeeding year. The report shall use the current standards in the production of corporate annual reports and shall include the audited financial statements of the JV. In addition, the report shall also contain the JV's work program for a period of three (3) years starting from the year the annual report is submitted. (Section 7.4, Ordinance No. 174-2009) . SECTION 57. Compliance with Relevant National Laws or Regulations . In instances where the approval of the national government or any of its agencies is necessary and indispensable in the procurement and implementation of the joint venture agreement, the same shall be secured and properly complied with. Further, nothing in this ordinance shall dispense with statutory requirements under the Local Government Code of 1991 and the Revised Administrative Code of the Philippines regarding the requirements for the validity of contracts entered into by an LGU, whether such contracts are for proprietary or governmental purposes. Furthermore, this ordinance notwithstanding, the local chief executive is required to secure the necessary authority from the Sangguniang Panlungsod to enter into any JV contracts or agreements for each and every project brought under the operation of this ordinance, in pursuance to Section 455 (b) or Republic Act No. 7160 or the Local Government Code of 1991. (Section 8, Ordinance No. 174-2009, S. of 2009) . ARTICLE IV Investor Incentives SECTION 58. Declaration of Policies . To accelerate the sound development of the local economy in consonance with the principles and objectives of the national government economic development programs, it is hereby declared to be the policy of the City of Lapu-lapu to encourage Filipino and foreign investments, as hereinafter set out, in projects to develop agricultural, mining, manufacturing and heavy industries, which increase local income most at the least cost, increase exports, bring about greater economic stability, provide more opportunities for employment, and raise the standards of living of the people. It is further declared to be the policy of the municipality to welcome and encourage foreign capital to establish pioneer enterprises that are capital intensive, would utilize a substantial amount of domestic raw materials, and employ substantial local manpower. SECTION 59. Four Year Tax Holiday . Any registered entrepreneur who shall invest capital of no less than Fifty Million Pesos (P50,000,000.00) or employs an initial work force of no less than two hundred (200) Oponganons shall be entitled to a four (4)-year Tax Holiday on all business taxes to be reckoned from the start of his operation. SECTION 60. Five Year Tax Holiday . Any registered entrepreneur who shall invest an initial capital of no less than Seventy Million Pesos (P70,000,000.00) or employs an initial of no less than three hundred (300) Oponganons shall be entitled to five (5) years Tax Holiday on all business taxes. SECTION 61. Six Year Tax Holiday . Any registered entrepreneur who shall invest in initial capital of no less that One Hundred Fifty Million Pesos (P150,000,000.00) or employees an initial of no less five hundred (500) Oponganons shall be entitled to six (6) years Tax Holiday on all business taxes to be reckoned from the start of his operation. ARTICLE V Franchise and Economic Zone SECTION 62. First Franchise Grantee . The City of Lapu-Lapu hereby grants unto the Eastern Telecommunications, Inc.,as its franchisee, this business privilege. SECTION 63. Franchise Fee . The grantee shall within thirty (30) days from the issuance of this resolution deposit with the city treasurer of City of Lapu-Lapu, a sum of Ten Thousand Pesos (P10,000.00),Philippine currency, as a sign of its acceptance of this franchise of the Philippines. (Section 6, Ordinance No. 99, S. of 1993). SECTION 64. Condition . This franchise is granted upon condition that it shall be subject to the amendment or alteration by the Congress of the Philippines when so required by public interest as provided in the Constitution of the Philippines, and shall not be interpreted as an exclusive grant of the privilege herein provided for. (Section 8, Ordinance No. 99, S. of 1993). SECTION 65. Reserved Right . A special right is hereby reserved to the president of the Philippines in time of war, insurrection, public peril, calamity or disaster to cause the closing of the facilities or to authorized the temporary use of possession thereof by the department of the government, upon payment of just compensation. (Section 10, Ordinance No. 99, S. of 1993). SECTION 66. Eastern Telecommunications Phils . The Eastern Telecommunications Phils.,Inc. (the grantee),its successors or assigns, shall provide by means of telecommunications systems, a local and international telephone service and such other telecommunications services as may be in demand more specifically residential and commercial applicants in the City of Lapu-Lapu, in providing such services, the grantee is authorized to install, maintain, operate such telecommunications lines, apparatus and accessories, necessary for the provisions and/or interconnection of telecommunications services, on, over or under, the public roads, government right-of-ways, lands, bridges, rivers, waters, streets, lanes, and sidewalks of said city and to connect and keep connected its telecommunications systems and services to other telecommunications systems and services in the Philippines and other countries and territories. (Section 1, Ordinance No. 99, S. of 1993). SECTION 67. Authority of Eastern Telecommunications Phils. The grantee may install, construct, maintain and operate such cable and/or radio telecommunications systems as may now be known to science or any other type or types of telecommunications systems which may in the future be developed, to provide telephone service including mobile services within the city, and to interconnect them with other municipalities, cities, provinces in the Philippines and ships at sea, aircraft in the air and the telecommunications systems of other countries; Provided, that, the national telecommunications Commission shall have the authority to supervise and regulate the installation or operation and maintenance of such cable, radio or other telecommunication systems. (Section 2, Ordinance No. 99, S. of 1993). SECTION 68. Cable . The grantee may install, construct, maintain and operate such cable and/or radio telecommunications systems as may now be known to science or any other type or types of telecommunications systems which may in the future be developed, to provide telephone service including mobile services within the city, and to interconnect them with other municipalities, cities, provinces in the Philippines and ships at sea, aircraft in the air and the telecommunications systems of other countries; Provided, that ,the national telecommunications Commission shall have the authority to supervise and regulate the installation or operation and maintenance of such cable, radio or other telecommunication systems. (Section 2, Ordinance No. 99, S. of 1993). SECTION 69. Right of Way . For the purpose of installing and maintaining its telecommunications lines, the grantee may, with the approval of the office of the mayor make excavations or lay conduits in coordination with Metro Cebu Water District (MWCD),MECO and DPWH/City Engineer, projects in any public places, highways, streets, lanes, alleys, avenues, sidewalks, bridges of the said city; Provided, however ,that any public places, highways, streets, lanes, avenues, sidewalks, bridge may not be disturbed, altered or changed by reason, of the installation and maintenance of said telecommunications line underground shall be repaired and replaced in a workmanlike manner by the said grantee. Should the grantee after ninety (90) days notice from the said office, fail, refuse or to repair or replace into its original state or condition any part of any public places, highways, streets, lanes, alleys, avenues, sidewalks, bridge altered, changed, or disturbed by said grantee, then the office of the city mayor thru the city engineer shall have the right to have the same repaired and/or restored in as good condition or maintenance work by the grantee, at the expense of the grantee. (Section 3, Ordinance No. 99, S. of 1993). SECTION 70. Acquisition of Properties. The grantee may acquire such private property as in actually necessary for the realization of the purpose for which this franchise is granted provided that the proper condemnation proceeding shall have been instituted and just condemnation proceeding shall have been instituted and penalties paid. (Section 5, Ordinance No. 99, S. of 1993). SECTION 71. National Taxes . The grantee shall pay to the national government the applicable franchise and income tax under the National Internal Revenue Code and pay annually one-half (1/2) of one percent (1%) of the gross earnings to the city treasury, except for the foregoing real estate tax on its land and building, it shall be subject to not other tax. The telephone posts, apparatus, equipment and communication facilities of the grantee are exempted from real estate tax. (Section 4, Ordinance No. 99, S. of 1993) . SECTION 72. Service Rates under Regulation . The rates chargeable by the grantee for the telephone service shall be subject to regulation by the National Telecommunications Commission in accordance with the laws and rules applicable thereto. (Section 9, Ordinance No. 99, S. of 1993). SECTION 73. Remedy . In case of violation of the term of the franchise, the sangguniang panlungsod shall grant the grantee a period of not less than sixty (60) days to cure the violation. (Section 7, Ordinance No. 99, S. of 1993). CHAPTER TWO Business Concerns ARTICLE I Accountants and Bookkeepers SECTION 74. Accreditation . The guidelines for the accreditation of bookkeepers and accountants who are applying and processing business/mayor's permit applications are the following: 1. All bookkeepers and accountants shall secure a Mayor's Permit to undertake the processing of the applications for Business/Mayor's Permit for their respective clients; 2. All accountants are mandated to secure a Professional Tax Receipt and submit a copy thereof to the City, provided that for those who are already secured from other LGUs, a copy of the said PTR shall be submitted to the City; 3. All bookkeepers and accountants shall submit a written authorization by way of a Special Power of Attorney (SPA) from their respective clients giving them full authority to process, secure and receive the Mayor's/Business Permits applied for; 4. All bookkeepers and accountants shall submit a sketch of their official address to the City. (Section 1, Ordinance No. 075-2008, S. of 2008) . SECTION 75. Other Requirements . All bookkeepers and accountants shall submit a sworn statement stating among others the following: 1. Their complete office and home address; 2. Their contact numbers; 3. That they have not been blacklisted, convicted of a crime involving moral turpitude or administratively held for any offenses involving funds or money. (Section 1, Ordinance No. 075-2008, S. of 2008). SECTION 76. Processing. For those duly authorized agents who are not accountants or bookkeepers, the following are the guidelines to allow them to process and secure Mayor's/Business Permit for and in behalf of their principal: 1. A duly authorized agent is a person who is not an applicant for a business permits and who does not belong to the type of profession stated in par. A hereof but is only authorized by an applicant to undertake the processing of the latter's permit application; 2. For a duly authorized agent who is related up to the third civil degree of the applicant, a written authorization shall be required to allow the same to apply and process applications for Mayor's/Business Permits; 3. For duly authorized agents who does not belong to the description in par. '2' hereof, a Special Power of Attorney (SPA) shall be required of them before they can process and secure a Mayor's/Business Permit. (Section 2, Ordinance No. 075-2008, S. of 2008) . SECTION 77. Administrative Provisions . 1. All bookkeepers and/or accountants shall secure an application for accreditation from the Office of the City Mayor, and an accreditation fee of Three Hundred (P300.00) pesos is hereby imposed against the bookkeepers or accountants for their first three (3) clients, provided that the succeeding clients shall be assessed a fee of Fifty (P50.00) pesos but in no case shall the total fee imposed and collected exceed Five Thousand (P5,000.00) pesos; 2. The applicant for accreditation shall submit all their requirements to the Office of the City Mayor for processing and release of their accreditation together with a complete application form; 3. Once a bookkeeper and/or accountant receive their Certificate of Accreditation, they shall furnish the One Stop Shop Center a copy thereof; 4. The accreditation shall be valid until December 51 of the year the same was secured and thus must be renewed thereafter; 5. The Office of the City Mayor is hereby authorized to come up with its Rules and Regulations implementing the foregoing Ordinance; 6. Any person found violating this ordinance shall be blacklisted by the City and shall remain as such unless a Motion for Lifting of the Blacklisting be filed by the concerned party with the Office of the City Mayor through the City Legal Office; 7. A blacklisted bookkeeper or accountant shall not be allowed to transact business or similar transactions with any office of the city government. (Section 3, Ordinance No. 075-2008, S. of 2008) . ARTICLE II Brokers and Salesmen SECTION 78. Definition . A real estate salesman is a natural person who performs for and in behalf of a real estate broker under whom he is licensed, and of the functions of a real estate broker, for or in expectation of a share in the commission fee, compensation or other valuable consideration. (Section 2, Ordinance No. 690, S. of 1991). SECTION 79. Real Estate Broker . A real estate broker is any person, natural or juridical person, who is an agent of another person and for or in expectation of a fee, commission or other valuable consideration, shall perform any of the following acts: offers, advertises, solicits, lists, promotes, mediates, negotiates or effects the meeting of the minds in the sale, purchase, exchange, mortgage, or lease of or joint venture or other transactions in real estate or any interest thereon. (Section 3, Ordinance No. 690, S. of 1991). ARTICLE III Clearances and Permits SECTION 80. Definition of Terms . a. Locational clearance a clearance as to zoning compliance by the City, to any party in favor of a piece of land subject of an application for introduction of improvements therein, including but not limited to fencing, land development or vertical improvements. b. Development permit refers to a permit issued by the City, for any application for the land development and/or improvement. c. Land development refers to any activity over a parcel of land that requires introduction of improvements such as fencing, backfilling or leveling of land, construction and the like. d. Structural development is a term used to connote that a structure with certain structural integrity, has been introduced or developed in the said area, either horizontally or vertically. (Section 2, Ordinance No. 373-2012, S. of 2012) . SECTION 81. Barangay Clearance at Situs . All applicants for mayor's permit and business license or permit for the conduct of any business or activity within the territorial jurisdiction of the City of Lapu-Lapu shall secure a barangay clearance first obtained from or issued by the barangay where such business or activity is located or conducted as a mandatory prerequisite to the issuance of the said mayor's permit and business license or permit (Section 152 (c) R.A. 7160). (Section 1, Ordinance No. 736, S. of 1992). SECTION 82. Contents of Barangay Clearance . The barangay clearance shall state among others that the applicant is a bonafide ,law-abiding resident of the barangay issuing the said clearance. It shall be signed by the barangay captain or punong barangay or his duly authorized representative who is a member of the sangguniang barangay. (Section 2, Ordinance No. 736, S. of 1992). SECTION 83. Barangay Clearance Fee. For the issuance of a barangay clearance, the applicant shall be required to pay to the barangay treasurer a barangay clearance fee equivalent in amount to what is imposed as a mayor's permit fee in the City of Lapu-Lapu in pursuant to existing city ordinance or Omnibus Tax Code, for which the barangay treasurer shall issue an official receipt thereof. (Section 3, Ordinance No. 736, S. of 1992). SECTION 84. Processing Period . The application for barangay clearance shall be acted upon within seven (7) workings days from the filing thereof. In the event that the clearance is not issued within the said period, the city may issue the said license or permit. (Section 4, Ordinance No. 736, S. of 1992). SECTION 85. Fidelity . For safekeeping of the barangay funds collected under this section, the barangay treasurer shall be required to render a monthly report thereon to the sangguniang barangay at its regular monthly session. (Section 3, Ordinance No. 736, S. of 1992). SECTION 86. Bond . The barangay treasurer shall be bonded in accordance with law in an amount to be determined by the sangguniang barangay but not Exceeding Ten Thousand Pesos premiums for which shall be paid by the barangay (Section 395 (d) Local Government Code of 1991). (Section 5, Ordinance No. 736, S. of 1992). SECTION 87. Locational Clearance . Application for locational clearance and/or development permits for subdivision, townhouse and condominium projects shall be accompanied by the following documents: 1. Barangay Council Resolution, interposing no objection to the project. 2. Duly notarized Deed of Undertaking executed by the owner of his duly authorized representatives stating, as follows: 2.1. That the project will not tap, extract or buy water from sources within the City; 2.2. That adequate drainage and other facilities will be provided in the project site to prevent flooding, pollution and other environmental concerns; 2.3. That the Office of the City Planning and Development Coordinator will be furnished a copy of the Environmental Clearance Certificate (ECC) issued by DENR before starting the construction of the project; 2.4. That the project has not been started. 3. Written commitment/deed of undertaking, duly notarized, to donate to the city government all the subdivision roads for public use; 4. Plan for the 20% socialized housing project component, if not exempted to be put up in Lapu-Lapu city. (Section 1, Ordinance No. 130-96, S. of 1996; Section 3, Ordinance No. 373-2012, S. of 2012) . SECTION 88. Commercial/Industrial Projects . Applications for locational clearances for commercial and industrial projects shall be accompanied by the following requirements: 1. Barangay Council Resolution, interposing no objection to the project. 2. Duly notarized Deed of Undertaking executed by the owner or his duly authorized representatives stating, as follows: 2.1. That the project will not tap, extract or buy water from sources within the City; 2.2. That adequate drainage and other facilities will be provided in the project site to prevent flooding, pollution and other environmental concerns; 2.3. That the Office of the City Planning and Development Coordinator will be furnished a copy of the Environmental Clearance Certificate (ECC) issued by DENR; 2.4. That the project has not been started. With respect to private residential projects, they shall requirement only Barangay clearance. (Section 3, Ordinance No. 373-2012, S. of 2012). SECTION 89. Process. In the endorsement of the application for a locational clearance and development permit for subdivision and condominium project to the Sangguniang Panlungsod (SP) for approval, the minutes of the City Development Council (CDC) meeting endorsing the application and all pertinent documents related to the project should be attached. (Section 2, Ordinance No. 130-96, S. of 1996; Section 4, Ordinance No. 373-2012, S. of 2012) . SECTION 90. Road Maintenance Fee for Locational Clearance and Development Permits . For the purpose of this code, a fee equivalent to one-tenth (1/10) of one percent (1%) of the total project cost shall be imposed on all locational clearance and development permit. (Section 5, Ordinance No. 373-2012, S. of 2012) . SECTION 91. Barangay Clearance . All barangays in the City of Lapu-Lapu shall have their respective application forms for business clearance. All applications filed with the barangays must be rubber-stamped "RECEIVED".Such rubber stamp shall incorporate the following information, to wit: a. Application Number b. Date of Receipt c. Time of Receipt d. Signature/initial of the Punong Barangay, or e. Barangay Secretary All applications shall be numbered sequentially. A logbook shall be maintained for the purpose of showing the name of the applicant and the information required in a, b and c above, and remarks (where the action taken is recorded. (Section 1, Ordinance No. 71-98, S. of 1998). SECTION 92. Denial of Barangay Business Clearance . Should the concerned barangay deny the issuance of the business clearance applied for, it must stamp the application as such (a rubber stamp should also be procured for this purpose),state the reason therefor and duly signed/initialed by the Punong Barangay or Barangay Secretary. In other case or form of denial, the Punong Barangay or Barangay Secretary 'must' furnish the City Treasurer (Attn: Licensing Division) a copy of such denial document which should be duly acknowledge by the latter. The Division shall file these documents separately per barangay for easy reference. (Section 2, Ordinance No. 71-98, S. of 1998). SECTION 93. Use of Barangay Clearance . The Licensing Division of the City Treasurer's Office before issuing the necessary business permit must require the applicant the presentation of the barangay clearance in addition to the other requirements before it issues the permit applied for. Failure of the applicant to present the said barangay clearance shall be a reason to deny the issuance of the business permit by the City of Lapu-Lapu as mandated by Section 152 of RA 7160. Unless otherwise allowed under the provision of this code, anybody in the Licensing Division who is responsible for the issuance of the business permit without the necessary Barangay Business Clearance shall be subject to the administrative sanctions provided herein. (Section 3, Ordinance No. 71-98, S. of 1998). SECTION 94. Claims of Inaction . In case the applicant for a City Business Permit claims that the barangay concerned failed to act on his/her/its application for a barangay clearance, the City Licensing Division must require the applicant to submit/present a copy of the application for Barangay Business Clearance, duly stamped as required in Section 1 hereof. The Licensing Division after receipt of the above-mentioned barangay application shall consult the barangay file for denied applications. In case no record of denial is on the file, the Division must communicate with the Barangay concerned and require a written advice from the latter on the status of the application. Such advise must be submitted by the barangay concerned to the Licensing Division within seven (7) working days from receipt of request, otherwise, the Licensing Division may process the application as if the barangay has favorably endorsed the same. (Section 4, Ordinance No. 71-98, S. of 1998). SECTION 95. Administrative and Judicial Remedies . The applicant after the denial by the Punong Barangay of the application for Barangay Business Clearance may apply for re-consideration with the Sangguniang Barangay which shall act on the request within five (5) working days from the date of receipt of the request. Failure by the Sangguniang Barangay to act on the request for re-consideration within the specified period shall mean that the denial by the Punong Barangay is deemed over-turned in favor of the applicant. The decision of the Sangguniang Barangay shall be final. Despite however, the finality of the decision of the Sangguniang Barangay, the applicant, in case of confirmation of the denial, may avail of judicial remedies applicable/available to under the circumstances. A copy of the decision of the Sangguniang Barangay shall be furnished to the Licensing Division of the Treasurer's Office for their information and guidance and for filing purposes. (Section 6, Ordinance No. 71-98, S. of 1998). SECTION 96. No Building Permit on RROW Premises . It is hereby declared unlawful for any government offices/departments of the City of Lapu-Lapu to issue and grant building permit to any applicant desiring to build vertical structure/improvements within the right-of-way (ROW) premises of the transmission/distribution lines of the National Power Corporation. (Section 1, Ordinance No. 209-96, S. of 1996). SECTION 97. No Trees on RROW Area . The grant of permits of any person, group of persons, organization or corporation wanting to engage in tree-planting activities within the aforesaid right-of-way premises shall likewise be prohibited, as prescribed under the Electrical Code of the Philippines. (Section 2, Ordinance No. 209-96, S. of 1996). SECTION 98. Implementing Agency . The offices of the City Engineer/Building Official and the City Planning and Development Coordinator shall be directed to implement the provisions herein with utmost efficiency. (Section 3, Ordinance No. 209-96, S. of 1996). ARTICLE IV Internet Cafe SECTION 99. Coverage . This ordinance shall apply and cover all individuals, corporations and other business establishments engaged in the business of operating interact or website facilities including internet caf, or similar facilities with the City of Lapu-Lapu. (Section 1, Ordinance No. 363-2006, S. of 2006) . SECTION 100. Layout and Floor Plan . The design, floor plan, and layout of the entire Facility shall be submitted to City Engineer and the Office of the Building Official before any construction, business license or permit could be issued by and on behalf of the city. Such permit or license shall be issued only if the applicant has strictly complied with the provisions of this ordinance. (Section 2, Ordinance No. 363-2006, S. of 2006) . SECTION 101. City Engineer's Model Design . Within ten days from the effectivity of this code, the Office of the City Engineer shall prepare a standard floor plan and layout in compliance with the provisions hereof that may be adopted as a model design for the purpose of providing the appropriate guide in complying with the provisions of this ordinance. (Section 6, Ordinance No. 363-2006, S. of 2006) . SECTION 102. Sanction for Non-Conformity to or Unauthorized Alteration of Plan . Failure to comply with the provisions of this ordinance or any attempt to alter or change the design and layout plan duly approved by the city engineer in consideration for which the business license or permit was issued shall be a ground for the immediate suspension or revocation the business permits or license and closure of the facilities. No business license or permits shall be renewed while any case involving violations of this ordinance is pending against any party seeking such renewal. (Section 8. Ordinance No. 363-2006, S. of 2006). SECTION 103. Capacity of the Facility. The floor plan and layout must indicate the maximum number of computer units or similar equipment, website cameras, the relative locations where these units will be installed, the number of cubicles/rooms and the dimensions of each cubicle/room. (Section 3, Ordinance No. 363-2006, S. of 2006) . SECTION 104. Plain View . The layout and floor plan must be presented in such a way that all clients and users of the facility shall at all times be within the plain and in full view of all others or any one who may have any lawful reason to be within the facilities or premises. (Section 4, Ordinance No. 363-2006, S. of 2006) . SECTION 105. Individual Rooms or Cubicles . To preserve the privacy of their communications individual rooms and cubicles may be allowed to be installed inside these internet facilities provided that these must be located and designed in such a way that any person occupying, renting or using the same shall at all times be seen in plain and full view of all other clients or persons who may be in the premises. Plain and clear glasses or similar transparency materials should be installed to expose the entire physical appearance of each occupant of the cubicle/room. (Section 5, Ordinance No. 363-2006, S. of 2006). SECTION 106. School Uniform on School Hours . No internet caf operator shall allow admission or entry into its premises or the use of its facilities by any student in the high school or elementary or lower grades during school days from 7:30 in the morning to 4:30 in the afternoon, unless the said student or pupil is accompanied by his/her parent(s) or guardians. For purposes of this Ordinance, a guardian shall mean any person related to the student or pupil up to the fifth civil degree of consanguinity or affinity. Furthermore, the concerned guardian must obtain a written permission from the teacher, principal or parent of the said student or pupil before allowing the use of the internet caf. (Section 9, Ordinance No. 363-2006 S. of 2006; Section 1, Ordinance No. 133-2008, S. of 2008) . SECTION 107. Violation of Other Laws . Any person who in the course of using the website, internet or other related facilities, is found to be acting, performing, behaving communicating or uttering words that tend to promote obscenity, indecency or pornography shall, in addition to any liability under this ordinance, be prosecuted under other existing laws together with the owner, proprietor, manager or other persons who may have accommodated, encouraged, tolerated or cooperated with the said guest or client. (Section 10, Ordinance No. 363-2006, S. of 2006) . SECTION 108. Enforcement of this Ordinance . This ordinance shall authorize any of the following offices or agencies to apprehend violators, to wit: Office of the City Mayor, Office of the City Engineer, Philippine National Police, Barangay Captains within their respective barangays, the Business Inspection Board or its equivalent, the Anti-Indecency Board or its equivalent. (Section 11, Ordinance No. 363-2006, S. of 2006) . ARTICLE V Other Business Regulations SECTION 109. Masks . All owners, operators and managers of all business establishments and manufacturing firms or industries engaged in the production of and processing of wood, coconut lumber, stone, shell craft and similar industries to provide protective or dust masks to their workers and employees as health and safety protective measures. (Section 1, Ordinance No. 178, S. of 1989). SECTION 110. Scalper and the Like . Scalping is pernicious and inimical to public interest. It shall therefore be unlawful for any scalper or person to sell, in connection with any sports contest, concert, stage performance, theater showing and similar undertakings, any ticket, with or without profit, outside an official booth or place as designated for the purpose. (Sections 2 and 3, Ordinance No. 225, S. of 1989). SECTION 111. Financiers . The prohibition contained in the next preceding section shall apply to any person who shall finance, manage or operate scalping. (Section 4, Ordinance No. 225, S. of 1989). SECTION 112. Sidewalks . All owners, operators and managers of stores, banks, theatres, hotels, restaurants and other similar establishments operating within the City of Lapu-Lapu from apportioning the sidewalk or any portion of the streets immediately abutting their establishments as exclusive parking areas and display or storage or merchandise. (Section 1, Ordinance No. 721, S. of 1992). SECTION 113. Video Machine Serial Number . Whenever a video game machine is permitted, the mayor's permit should indicate the serial numbers of the computerized video game machine to be displayed and attached on each unit. (Section 2, Ordinance No. 43, S. of 1988). SECTION 114. Game Hours . The playing operation shall commence from 5:00 o'clock pm to 12:00 o'clock midnight everyday, except Saturdays, Sundays and legal holidays. (Section 2, Ordinance No. 43, S. of 1988). SECTION 115. Video Game Machine and Minors . Minors, those who, for purposes of this code, are 16 years old and below, are not allowed to play video game machine, unless they are accompanied by their parents or guardians. (Section 3, Ordinance No. 43, S. of 1988). FINAL PROVISIONS SECTION 116. General Penal Clause . Unless otherwise covered by any specific penalty hereunder provided, all persons found violating any of the provisions contained in this code shall be penalized with a fine of One Thousand Pesos (P1,000.00) but not to exceed Three Thousand Pesos (P3,000.00) and/or an imprisonment of not less than one (1) month but not more than six (6) months or both at the discretion of the court. SECTION 117. Specific Penal Clause . The city has determined specific penalty provisions for different violations of this code which shall be applied in suppletory character. SECTION 118. Penalties for Chapter One Investment Concerns, Article II Tour Guides . The penalties for violation of the foregoing provisions are as follows: A. For acting as tour guide without the needed business and mayor's permit i. First Offense Fine of P1,000.00 or imprisonment of one (1) week to one (1) month or both at the discretion of the Court; ii. Second Offense Fine of P3,000.00 or imprisonment of not less than one (1) month but not more than Six (6) months or both at the discretion of the Court; iii. Third Offense Fine of P5,000.00 or an imprisonment of not less than six (6) months but not more than One (1) year or both at the discretion of the Court. B. For failure to wear the required identification car while working as tour guide: i. First Offense Community service for one (1) week or a fine of P500.00; ii. Second Offense Community service for one (1) month or a fine of P1,000.00; iii. Third Offense and Succeeding Offenses Community service for three (3) months or a fine of P1,500.00. (Section 4, Ordinance No. 285, S. of 1989; Section 3, Ordinance No. 110, S. of 1993; Sections 9-10, Ordinance No. 373-2012, S. of 2012). SECTION 119. Administrative Sanctions for Violations of Chapter Two Business Concerns, Article III Clearance and Permits . Anybody found guilty of violating the provisions of Article III Clearances and permits shall be meted the following administrative penalties, to wit: First Offense Five (5) day suspension without pay Second Offense Fifteen (15) day suspension without pay Third Offense Thirty (30) day suspension without pay Fourth Offense dismissal from the service. (Section 7, Ordinance No. 71-98, S. of 1998). SECTION 120. Penalties for Violations of Chapter Two Business Concerns, Article IV Internet Caf . Owners, proprietors, managers or their agents and representatives or any person or entity, natural or juridical, found violating any of the provisions of this ordinance or any of its implementing rules that may be issued from time to time for the effective implementation of this ordinance unless otherwise indicated in this ordinance shall suffer the penalty of imprisonment of not less than six months but not more than twelve months as may be determined by the courts and a fine of FIVE THOUSAND PESOS (P5,000.00).In case against partnerships or corporations the partners and principal officers of the latter shall also be made liable. (Section 7, Ordinance No. 363-2006, S. of 2006) . SECTION 121. Separability Clause. Should there be any provision of this code that may be declared by a court of competent jurisdiction as contrary to the constitution or laws, or is against public order, good customs or national policies or is enacted in excess of or in violation of the authority of the Sanggunian Panlungsod of the City of Lapu-Lapu, only such provision shall be rendered invalid. The other provisos that are not affected by such a judicial pronouncement shall remain in force, effective and valid. SECTION 122. Implied Repeal . In adopting this code, it is the intention of the City of Lapu-Lapu that only such ordinances that are enumerated and listed hereunder are considered modified or repealed. It does not favor implied repeal such that only those ordinances, not otherwise mentioned hereunder, that contain provisions that come in irreconcilable conflict with any proviso herein may be deemed implied repeal. SECTION 123. Expressed Repeal . The following ordinances of the City of Lapu-Lapu are hereby expressly repealed. 1 Ordinance No. 43, S. of 1988 ; August 3, 1988 2 Ordinance No. 178, S. of 1989 ; April 26, 1989 3 Ordinance No. 225, S. of 1989; August 17, 1989 4 Ordinance No. 285, S. of 1989 ; December 6, 1989 5 Ordinance No. 643, S. of 1991 ; August 27, 1991 6 Ordinance No. 690, S. of 1991 ; November 13, 1991 7 Ordinance No. 721, S. of 1992 ; January 29, 1992 8 Ordinance No. 736, S. of 1992; February 19, 1992 9 Ordinance No. 99, S. of 1993 ; October 8, 1993 10 Ordinance No. 110, S. of 1993 ; October 27, 1993 11 Ordinance No. 128-A, S. of 1994 ; January 13, 1994 12 Ordinance No. 17-95, S. of 1995 ; August 28, 1995 13 Ordinance No. 130-96, S. of 1996 ; June 13, 1996 14 Ordinance No. 209-96, S. of 1996 ; October 21, 1996 15 Ordinance No. 71-98, S. of 1998 ; December 22, 1998 16 Ordinance No. 236-2000, S. of 2000 ; March 22, 2000 17 Ordinance No. 02-2001, S. of 2001 ; August 8, 2001 18 Ordinance No. 51-2001, S. of 2001 ; November 19, 2001 19 Ordinance No. 91-2002, S. of 2002 ; February 1, 2002 20 Ordinance No. 259-2005, S. of 2005 ; August 9, 2005 21 Ordinance No. 340-2006, S. of 2006 ; March 24, 2006 22 Ordinance No. 363-2006, S. of 2006 ; July 4, 2006 23 Ordinance No. 075-2008, S. of 2008 ; January 22, 2008 24 Ordinance No. 124-2008, S. of 2008 ; August 29, 2008 25 Ordinance No. 127-2008, S. of 2008 ; August 29, 2008 26 Ordinance No. 133-2008, S. of 2008; September 17, 2008 27 Ordinance No. 174-2009, S. of 2009; February 10, 2009 28 Ordinance No. 373-2012, S. of 2012 ; February 8, 2012 SECTION 124. This ordinance shall take effect upon its approval. ENACTED. APRIL 13, 2016. APPROVED. July 22, 2016. I hereby certify to the correctness of the above-quoted ordinance. (SGD.) FRANCISCO Y. LIMPANGUG SP/City Secretary ATTESTED: (SGD.) MARCIAL A. YCONG Vice Mayor & Presiding Officer APPROVED: (SGD.) PAZ C. RADAZA City Mayor