Section 4G.01 Tricycle Franchis

Article G. Franchise and Other Fees on Tricycle Operation

Section 4G.01 Definitions - When used In this Article

(a) Tricycle-for-hire is a vehicle composed of motorcycle fitted with a single-wheeled side car or a motorcycle with a two-wheeled cab operated to render transport services to the general public for a fee.

(b) Motorized Tricycle Operator's Permit ( MTOP ) is a document granting franchise or license to a person, natural or juridical, allowing him to operate tricycles-for-hire over specified zones.

(c) Zone is a contiguous land area or block, say a subdivision or a barangay, where tricycle-for-hire may operate without a fixed origin and destination.

Section 4G.02 Imposition of Fees

(a) Annual Franchise. There shall be collected an annual franchise fee in the amount of Two Hundred Five Pesos (Php 205.00) per tricycle.

(b) Dropping Fee. There shall be collected a dropping fee in the amount of Eight Hundred Pesos (Php 800.00) per tricycle.

Section 4G.03 Time of Payment

(a) The franchise fee shall be paid to the City Treasurer upon application or renewal of the franchise.

(b) The filing fee shall be paid upon application for an MTOP based on the
number of units.

(c) Fare Adjustments fee for fare increase shall be paid upon approval of fare increase to be collected together with the annual franchise fee.

(d) Filing fee for amendment of MTOP shall be paid upon application for transfer to another zone, change of ownership or transfer of MTOP.

Section 4G.04 Administrative Provision

(a) The Sangguniang Panglungsod City of Olongapo shall:

(1) Issue, amend, revise, renew suspend, or cancel MTOPs and prescribe the appropriate terms and conditions therefore; determine, fix, prescribe or periodically adjust fares or rates for the service provided in a zone after public hearing; prescribe and regulate zones of service in coordination with the barangay; fix, impose and collect, and periodically review and adjust but not more often that once every three (3) years, reasonable fees and other related charges in the regulation of tricycle-for-hire; and establish and prescribe the conditions and qualifications of service.

Only Filipino citizens and partnership or corporation with sixty percent (60 %) Filipino equity shall be granted the MTOP. No MTOP shall be granted by the City unless the applicant is in possession of units with the valid registration papers from the Land Transportation Office (LTO);

(2) The grantee of the MTOP shall carry common carriers insurance sufficient to answer for any liability it may incur to passengers and third parties in case of accidents;

(3) Operators of tricycle-for-hire shall employ drivers duly licensed by the LTO for tricycle-for-hire;

(4) Operators who intend to stop service completely, or suspend service for more than one (1) month shall report in writing such termination or suspension to the Sangguniang Panglunsod.

(5) Tricycle Operators are prohibited to operate on national highways utilized by four wheel vehicles greater than four (4) tons and where normal speed exceeds forty (40) kilometers per hour. The Sangguniang Panglunsod may provide exception if there is no alternative route; and

(6) Tricycles-for-hire shall be allowed to operate like taxi service, i.e. service is rendered upon demand and without a fixed route within a zone.

(b) The Sangguniang Panglunsod may impose a common color for tricycles for hire in the same zone. Each tricycle unit shall be assigned and bear an identification number, aside from its LTO license plate number.

It shall establish a fare structure that will provide the operator a reasonable return or profit, and still be affordable to the general public. The fare structure may either be flat (single fare regardless of distance) as a minimum amount plus a basic rate per kilometer.

(c) The official fare to be initially adopted shall be a minimum fee of Seven Pesos and Fifty Centavos (Php7.50) and One Peso (Php1.00) per kilometer in excess of four (4) kilometer which may be adjusted through the enactment of the prescribed fare structure for each zone by the Sangguniang Panglunsod.

(d) Operators of tricycle-for-hire are required to post in the conspicuous part of the tricycle the schedule of fares.

(e) The zones must be within the boundaries of the City of Olongapo. The existing zones which cover the territorial unit not only of the City but other adjoining municipalities as well shall be maintained provided the operators serving said zone secure the MTOP.