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BPLS INSPECTORATE TEAM OPERATIONS MANUAL:

A GUIDE FOR LOCAL GOVERNMENT UNITS

Decentralization Program

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BPLS INSPECTORATE TEAM OPERATIONS MANUAL:


A GUIDE FOR LOCAL GOVERNMENT UNITS

This publication is made possible by the German Technical Cooperation (GTZ) commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ)

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Message

he Business Permit and Licensing System (BPLS) Inspectorate Team Operations Manual is a modest contribution of the GTZ Decentralization Program (DP) to ongoing efforts in harmonizing BPLS reforms among local government units (LGUs). As improved BPLS practices aim to enhance local business climates thereby increasing local revenues, improved services of LGUs is a requirement. We believe that BPLS streamlining is a two-part process: revenue generation and regulatory processes. Although treated as separate, each part is very much related to the other. In this manual, we focus on the regulatory process which is as important as the revenue generation. Several workshops, seminars and studies conducted with the different LGUs in the country point to lack of personnel and coordination and conduct of separate inspections by the different regulatory offices involved in the inspection of business establishments as the main causes of delay in the processing of business permits. These practices not only create an unfriendly environment for business operators but show an unsystematic and inefficient delivery of service by the LGUs and open opportunities for graft and corruption. The creation of the BPLS Inspectorate Team answers the need of the business operators for a more organized and efficient process of the conduct of inspections. It also provides for a more business-friendly environment as inspections are conducted at prescribed intervals on a limited number of terms in a year. This service provided by the LGUs should be demanded by the people because this is a service they pay for and is entitled to have. Moreover, this portrays a more transparent, systematic and efficient LGU, willing to harmonize its processes to better improve their services for the people.

GTZ Decentralization Program

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

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INTRODUCTION

n the interest of enabling local government units (LGU) that contribute towards improving framework conditions for business and investment, increase their local revenue, and improve their services, the German Technical Cooperation (GTZ) in partnership with the Department of Interior and Local Government (DILG-7), the Department of Trade and Industry (DTI-7) and the Cebu City Government initiated the Streamlining of Business Permit and Licensing System of selected LGUs in Cebu Province. Twelve (12) LGUs namely Naga, Minglanilla, San Fernando, Moalboal, Carcar, Talisay City, Barili, Cordova, Danao City, Liloan, Compostela and Consolacion underwent technical and process workshops on BPLS streamlining as well as on-site coaching. Capacity Development Trainings were also conducted such as Records Management, Business Tax Assessment and Evaluation of Gross Sales and Monitoring and Evaluation to strengthen the institutional support of BPLS. To further ensure that BPLS is continued even after January, a Capability Development Training on BPLS Inspectorate Team was conducted last March 2009 with the objective of institutionalizing Conduct of Inspection whole year round. An offshoot of this training is the creation of this BPLS Inspectorate Team Operations Manual: A Guide for LGUs. Hopefully, through this we will be able to assist you in the following: 1. 2. 3. Establishment of your Inspectorate Team; the composition of your members and their roles; The Process of conducting an Inspection: supporting laws and ordinances as well as forms; And finally, the challenge of sustaining your BPLS Inspectorate Team.

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BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

CONTENTS

Message Introduction Table of Contents Acronyms Part 1 THE BUSINESS PERMIT & LICENSING SYSTEM (BPLS) INSPECTORATE TEAM A. Creation, Purpose and Composition ........................................... 1 B. Organizing the BPLS Inspectorate Team......................................... 8 THE BPLS INSPECTION FRAMEWORK & PROCEDURE Overview ......................................................................................... 11 A. Objective ................................................................................ 12 B. Scope ..................................................................................... 12 C. Related Documents ................................................................... 12 D. Records .................................................................................. 12 E. Procedure Details ..................................................................... 13 THE BPLS INSPECTION PROCEDURE Procedure 1: Prepare For Inspection..................................................... 14 A. Procedure Summary ................................................................. 14 B. Implementing Guidelines ........................................................... 15 C. Required Documents................................................................. 15 D. The BPLS Consolidated Inspection Report Form ............................ 16 Procedure 2: Conduct Inspection ......................................................... 17 A. Procedure Summary ................................................................. 17 B. Implementing Guidelines ........................................................... 18 Procedure 3: Prepare Inspection Report ................................................ 19 A. Procedure Summary ................................................................. 19 B. Implementing Guidelines .......................................................... 19 EVALUATING THE BPLS INSPECTION PROCEDURE Guidelines on the Review and Assessment of Inspection Procedure .......... 21 THE BPLS INSPECTORATE TEAM SUCCESS MECHANISMS ....................... 22 FREQUENTLY ASKED QUESTIONS ....................................................... 24 FURTHER READINGS AND REFERENCES ............................................... 26

Part 2

Part 3

Part 4 Part 5 Part 6

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

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LIST OF ACRONYMS

BFP BOSS BP BPL BPLO BPLS CCG DILG DTI EO GTZ GTZ-DP ISO LGU OD OBO PD RA

Bureau of Fire Protection Business One-Stop Shop Business Permit Business Permit and Licensing Business Permit and Licensing Officer Business Permit and Licensing System Cebu City Government Department of the Interior and Local Government Department of Trade and Industry Executive Order German Technical Cooperation German Technical Cooperation-Decentralization Program International Organization for Standardization Local Government Unit Organizational Development Office of the Building Official Presidential Decree Republic Act

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BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

PART 1

A. Creation, Purpose & Composition

CREATION OF BPLS INSPECTORATE TEAM The idea of creating an Inspectorate Team for Business Permit and Licensing System (BPLS) to Local Government Units (LGUs) who have not embarked on this endeavor may be received with skepticism and would probably pose queries like What benefits would the LGU derive from creating the Inspectorate Team? and Why is there a need to create a BPLS Inspectorate Team? Mostly this need is not easily acknowledged or recognized by the LGU unless one is aware of the various studies conducted on government processes in the country or the LGU itself has devised a feedback mechanism in evaluating their BPLS process or other processes for that matter. Based on the findings of the various studies conducted on LGU processes, more particularly on BPLS, it has been established that the inspection stage on the business establishment is the choke point of the BPLS procedure. It is here that documents are held the longest time. These delays in government processes affect establishments so much that they sometimes resort to bribery so that needed permits are processed immediately. It has also caused some establishments to pull out their investments and find other locations; a move which has been detrimental to our economy.

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

Having identified that inspection causes the delay in the business permit process, the need to create a Composite Inspectorate Team is inevitable, and is the only solution that has been proven effective. Not only does it facilitate the joint interaction and cooperation of the various inspection offices, it also allows them to accomplish all inspection requirements in a single moment thereby making the process move faster. Resources are jointly used and effectively shared thus addressing the universal problem on scarce resources.

As required by RA No. 9485, the Citizens Charter should provide for feedback/ complaint mechanism.

The creation of the joint Inspectorate Team puts together into one cooperative effort the various regulatory inspection activities of the following offices in securing a business permit: Engineers Office, Health Office, Building Official, Planning and Development Office, Treasurers Office and the Licensing Office, Bureau of Fire Protection (BFP).

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

This is in response to the call of streamlining the government processes especially those directly involving the public. It also protects the integrity of the office and the individual inspector(s) against any untoward incident; i.e. bribery, to which they are exposed to during the conduct of their official function.

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

Various provisions of the 2007 Anti Red Tape Law, which is a reiteration of some provisions in RA No. 6713 An Act Establishing A Code of Conduct and Ethical Standards for Public Officials and Employees, Section 4 of its Implementing Rules and Regulations support the efficient provision of services by government as stated in: Section 4. Every department, office and agency shall conduct continuing studies and analyses of their work systems and procedures to improve delivery of public services. Towards this end, such studies and analyses shall: (1) identify systems and procedures that lead or contribute to negative bureaucratic behaviour; (2) simplify rules and procedures to avoid red tape; and (3) devise or adopt systems and procedures that promote official and employee morale and satisfaction. In its codal provisions, RA 6713 explicitly provides: Section 5. Duties of Public Officials and Employees. In the performance of their duties, all officials and employees are under obligation to: ... c) Process documents and papers expeditiously. All official papers and documents must be processed and completed within a reasonable time from the preparation thereof and must contain, as far as practicable, not more than three (3) signatories therein. d) Act immediately on the public personal transactions. All public officials and employees must attend to anyone who wants to avail himself of the services of their offices and must, at all times, act promptly and expeditiously.

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

The creation of BPLS Inspectorate Team is also considered a sustaining mechanism to support BPLS. Anchored on the need to conduct continuous inspection even after January, the BPLS Inspectorate Team ensures that this is effectively and continuously undertaken. It becomes a regulatory function supported by established ordinances and done whole year round. Finally, since delays are now addressed, more investments are generated. In the long run, the benefit all boils down to increased revenues for the LGUs and improved economy of the locality. LGUs will be more capacitated to implement more projects, grant additional bonuses and benefits to their employees. Basic Requirement in Creating an Inspectorate Team The basic requirement needed in the creation of an Inspectorate team is the issuance of the Legal Mandate from which the members will base all their activities. This can be supported either through an Ordinance or an Administrative/Executive Order. Either instrument is acceptable; however, for this to be institutionalized, an Ordinance is best recommended.

For the Legal Mandate to be effective, the following should be explicitly stated: Composition Members of the Team from various regulatory offices (Engineering, Office of the Building Official or OBO, Planning, Business Permit and Licensing Officer or BPLO, Fire, Health etc.) 2. Roles and Functions of the Members 3. Schedule of Activities a. Conduct of Inspection b. Monitoring Activities c. Report Preparation 1.

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

4. 5.

Policy and Accountability Funding PURPOSE OF BPLS INSPECTORATE TEAM

Upon its set-up, it is essential that the entire team, as well as the offices they represent, be clear, conversant and correct on the objectives of the Inspectorate Team, to ensure a unified and cohesive approach towards inspection. The Inspectorate Team should be oriented towards their purpose, mandate and obligation as a member of the team and their respective regulatory offices. The general purpose of the BPLS Inspectorate Team which is also inherent in the duties and responsibilities of the regulatory offices in an LGU are the following: 1. 2. 3. 4. 5. 6. 7. Ensure public safety Protect public welfare Verify information declared by the business operator in his application for business permit Ensure compliance of the business to existing laws and ordinance. Exercise of the regulatory function of the Mayor simultaneously generating income thru taxes, fees and charges Prepare inspection report which would serve as recommendation to the Mayor for disposition Monitor developments and changes in business activity

Although the regulatory offices are formed into a team, their respective functions do not change and they should ensure that their mandated inspection concerns are met accordingly. The team members shall be governed by their respective codes mandating the function of their respective offices.

Regulatory Offices Involved City/Municipal Treasurers Office City/Municipal Health Office Bureau of Fire Protection Engineering Office/Office of the Building Official City/Municipal Planning Office

Governing Code of the Office Local Revenue Code/Omnibus Tax Code of the Philippines Sanitation Code of the Philippines Fire Safety Code of the Philippines Building Code and Accessibility Law Zoning Ordinance

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

Conduct of inspection is a regulatory function and not conducted only when there is a request. It is important to note that the conduct of inspection should be precautionary or preventive and not reactive. Time management is also important in scheduling regular conduct of inspections. COMPOSITION OF BPLS INSPECTORATE TEAM The BPLS Inspectorate Team should be composed of the following regulatory offices: 1. 2. 3. 4. 5. 6. Mayors Office (Permits and Licensing Office headed by the Business Permit and Licensing Officer) Treasurers Office (Business Tax, Fees Assessment Division) Planning and Development Office Building or Engineers Office Health Office Bureau of Fire Protection

As provided in the Local Government Code of 1991, the issuance of business permit is one of the mandated functions of a Mayor. It is the Mayor who issues the business permit; the inspection findings of the different departments form part of the recommendation for its issuance. The different regulatory offices formed the technical arm of the mayor from which he should base his approval or denial of the business permit.

An illustrative view of the Inspectorate Team may be as follows:


MAYORS OFFICE BPLO Team Leader

ENGINEERING OFFICE / BUILDING OFFICIAL

BUREAU OF FIRE PROTECTION

CITY/MUNICIPAL HEALTH OFFICE

CITY/MUNICIPAL PLANNING OFFICE (ZONING)

(Business Tax Assessment)

CITY/MUNICIPAL TREASURERS OFFICE

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

The proposed leader of the Inspectorate Team should be that from the Mayors Office or the Permits and Licensing Office being directly under the supervision of the Mayor. However, in the absence of the above, the preference of the mayor among the members will be considered especially if his/her choice enjoys his/her trust and confidence.

In Cebu City, the Liquor Licensing Commission also forms part of the Inspectorate Team. Its main thrust is the regulating and monitoring of establishments which sell alcohol and cigarettes. This is an initiative which LGUs can also undertake depending on the kind of establishments that are in existence within the locality.

B. Organizing the BPLS Inspectorate Team

DOCUMENTING THE BPLS INSPECTION TEAM & PROCEDURE From the onset, it is important that the BPLS Inspectorate Team should document their very existence and activities. This documentation shall promote clarity of roles, cohesiveness of approach, and accountability of action in the conduct of inspection. The following serve as Process Guidelines on the initial creation and documentation of an Inspectorate Team: Prepare the general objectives of the BPLS Inspectorate Team based on its legal purpose Identify and review reference documents related to BPLS Inspection such as the Local Government Code and Ordinances Identify the role of each BPLS Inspectorate Team member according to the purpose of the office being represented Map out the overall BPLS Inspection Procedure (as illustrated in Part 2) Determine linkages with other offices involved in the overall BPL System Formulate and finalize necessary documents to be used during the inspection (refer to Part 2 Item C)

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

SCHEDULING AND TASKING After the composition of the BPLS Inspectorate Team has been organized, the schedules for inspection and monitoring should be set-up, with two pillars in mind: Determine inspection frequency and schedule Prepare an Action Plan with corresponding assigned role for each personnel and resources involved, based on each regulatory offices and the BPLS Inspectorate Teams mandate.

Inspection Schedule for New Applications: To conform to the provision of the law on prompt action on application, inspection schedule for new business should already be designated. An example would be: Receipt of Application Monday Tuesday Wednesday Thursday Friday 1. Schedule of Inspection Tuesday Morning Wednesday Morning Thursday Morning Friday Morning Monday Morning

The Inspectorate Team would devise the schedule or timetable of inspection either for the new business or renewal according to the volume of impending business establishments, since not all LGUs have enough personnel who could just focus on inspection due to having other regulatory functions other than inspection. It is suggested that the term Inspectorate team be changed to Inspection Team. The term inspectorate somehow connotes with that of law enforcement team. Meaning, with force and authority. Since the LGU also espouses a businessfriendly environment, to attract and retain investors, it would be better if it is termed as Inspection Team as part of their routinary function.

2.

Looking at the schedule above, the initial reaction could be hectic! However, it should be noted that application for new business is not an everyday transaction. A week or a month would pass without an applicant.

In those identified days as inspection schedule, the team member should automatically verify from the team leader if there is a pending application for processing. If none, then other functions should be attended to, but the priority should still be the inspection.

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

Inspection Schedule for Renewals: The BPLS Inspectorate Team shall conduct inspection on any business establishment at least twice a year: FIRST INSPECTION: Every first semester, immediately after the renewal period in January SECOND INSPECTION: Every last quarter of the year to monitor compliance. The findings in the SECOND inspection shall form part of the recommendation and serve as the inspection report of the team. This in turn will be the basis for RENEWAL or NON RENEWAL of the permit in January. Sanitation may continue to conduct its own monthly monitoring inspection, as required by law. It is noted in the 2nd inspection that this will be conducted in the last quarter of the year, which is going to Christmas/holiday season. Inspections conducted during the month(s) may be skipped or suspended to other months by some LGUs because they might be misconstrued that they are soliciting Christmas perks or gifts (namamasko).

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BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

PART 2

The BPLS Inspection Framework & Procedure

OVERVIEW The BPLS Inspection Procedure that will be presented in this section follows the basic framework of ISO 9001 which is the Generic Management System Standards.

Generic means that the same standard can be applied to any organization, large or small, whatever its product or service, in any sector of activity, and whether it is a business enterprise, a public administration, or a government department. ISO 9001 contains a generic set of requirements for implementing a quality management system. (www.ISO. org). In particular, ISO 9001:2008 specifies requirements for a quality management system where an organization. needs to demonstrate its ability to consistently provide product that meets customer and applicable statutory and regulatory requirements, and aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable statutory and regulatory requirements.

The purpose of the framework, in this case, is to provide a Process Approach. The Process Approach ensures that every single procedure in the process creates the desired output. Therefore, the preceding pages detail the framework, the inspection procedure and each step in the inspection procedure.

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

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The entire inspection procedure, and each step of the procedure, has its own identified Objective, Scope, Related Documents, Records and Procedure Details. These details allow the team to validate and evaluate the interaction and interplay of each step in the procedure, ultimately corroborating that each purpose produces the intended result. Note: The version presented here, of course, is an adaptation of the ISO 9001, to suit the purpose, and factors by which the inspection procedure is dependent upon. FRAMEWORK & PROCEDURE A. Objective - indicate the purpose of the procedure. The BPL Inspection procedure verifies the compliance of establishments to laws and ordinances governing its business operations. B. Scope - state the start and end activities of the procedure. This procedure starts from the preparation for inspection of establishments and ends with the preparation of inspection report. C. Related Documents - list of reference documents, implementing guidelines and pre-approved forms to be used in the procedure.

Related Documents
Mission Order Inspection Checklist Guidelines in Preparation for Inspection Guidelines in Conducting Inspection Guidelines in Inspection Report Preparation List of Establishments to Inspect BPLS Consolidated Inspection Report Form Notice of Violation Form

Source
Mayors Office Per Regulatory Office BPLO BPLO BPLO BPLO BPLO BPLS Consolidated Inspection Report Form (serves as first notice), Per Regulatory Office

D.

Records list of output documents as a result of performing the procedure. 1. 2. Filled-out and signed BPLS Consolidated Inspection Report Form Filled-out and signed Inspection Report Form from each Regulatory Office

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BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

E.

Procedure Details - illustrate procedure using flowchart, identify position title of personnel responsible and indicate details of the procedure.
Personnel Responsible Documents & Records

Procedure Flow

START

PREPARE FOR INSPECTION

BPLO/Team Leader Inspectorate Team Members

CONDuCT INSPECTION

BPLO/Team Leader Inspectorate Team Members

Related Documents: 1. Mission Order - Source: Mayors Office 2. Inspection Checklist - Source: Per Regulatory Office 3. BPLS Consolidated Inspection Form (7 copies) - Source: BPLO 4. Notice of Violation Form (3 copies/establishment) - Source: Per Regulatory Office 5. List of Establishments to Inspect - Source: BPLO 6. BPL Consolidated Inspection Form (7 copies) - Source: BPLO

PREPARE INSPECTION REPORT

BPLO/Team Leader Inspectorate Team Members

END

Record: 1. Filled-out and signed BPLS Consolidated Inspection Form (1 copy to establishment, 1 copy to BPLO, 1 copy per Inspector) 2. Filled-out and signed Inspection Report Form from each Regulatory Office (1 copy to establishment, 1 copy to BPLO, 1 copy per Inspector)

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

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PART 3
The BPLS Inspection Procedure

PROCEDURE 1: PREPARE FOR INSPECTION A. Procedure Summary


Procedure Flow Personnel Responsible Documents & Records

START

PREPARE FOR INSPECTION

BPLO/Team Leader Inspectorate Team Members

CONDuCT INSPECTION

BPLO/Team Leader Inspectorate Team Members

Related Documents: 1. Mission Order - Source: Mayors Office 2. Inspection Checklist - Source: Per Regulatory Office 3. BPLS Consolidated Inspection Form (7 copies) - Source: BPLO 4. Notice of Violation Form (3 copies/establishment) - Source: Per Regulatory Office 5. List of Establishments to Inspect - Source: BPLO 6. BPL Consolidated Inspection Form (7 copies) - Source: BPLO

PREPARE INSPECTION REPORT

BPLO/Team Leader Inspectorate Team Members

END

Record: 1. Filled-out and signed BPLS Consolidated Inspection Form (1 copy to establishment, 1 copy to BPLO, 1 copy per Inspector) 2. Filled-out and signed Inspection Report Form from each Regulatory Office (1 copy to establishment, 1 copy to BPLO, 1 copy per Inspector)

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BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

B. Implementing Guidelines 1. The newly organized BPLS Inspectorate Team needs to review and discuss the following: Objectives of the BPLS Inspection based on pertinent laws and regulations Role of each BPLS Inspectorate Team member according to the purpose of the office being represented BPLS Inspection Procedure details (as discussed in Part 2) Coordinative relations with other offices involved in the overall BPL System All Implementing Guidelines for Inspection a. Guidelines in Preparation for Inspection b. Guidelines in Conducting Inspection c. Guidelines in Inspection Report Preparation All Related Documents and Forms needed for inspection a. Mission Order b. Inspection Checklist c. BPLS Consolidated Inspection Report Form d. Notice of Violation Form Place and time of assembly 2. As a continuous activity, the BPLS Inspectorate Team needs to ensure: Integration of improvements in the Inspection Procedure based on the previous inspection done Availability of: a. Updated information on List of Establishments to Inspect b. Approved and signed Mission Order c. BPLS Consolidated Inspection Report Form 7 copies per establishment d. Notice of Violation Form 3 copies per establishment Readiness of logistics needed: a. Trip ticket (if applicable) b. Vehicle (if applicable) c. Camera d. Identification Paraphernalia (incl. identification card, introduction letter from the mayor, t-shirt with printed name of LGU)

C. Required Documents 1. Mission Order Source: Mayors Office The BPLS Inspectorate Team is required to get a Mission Order from the Mayors Office, indicating the list of establishments to be inspected. This is in addition to the Mission Order which each regulatory office has, particularly those that operate at National Level, such as Fire and Sanitation (Health). 2. Inspection Checklist Source: Per Regulatory Office Each regulatory office is expected to bring their respective Inspection Checklist specific to their area of inspection or concern. Such lists take into account whether the establishment is for public or private use, residential or commercial and other extensive and exhaustive classifications.

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

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D. The BPLS Consolidated Inspection Report Form 1. BPLS Consolidated Inspection Report Form Source: BPLO
republic of the philippines Office of the City Mayor Permits and Licenses Division BPLS Consolidated Inspection Report Form Business Name: Proprietor Address Date of Inspection Status of Business office Municipal Planning & Development

NEW findings conforming AllowABle non conforming complying non complying complying non complying complying non complying

RENEWAL remArks inspectors signAture over printed nAme

Municipal Engineer Office/OBO

Bureau of Fire Protection

Municipal Health

Municipal Treasurer

complying non complying

recommendAtion:

for Bplo use Approved for processing return to ApplicAnt for compliAnce This serves as your 1sT NoTice violaTioN others (specified below)

notes: draw sketch Map of the establishment at the back of the form. Furnish the Operator and BPLO with individual Inspection Report from each Regulatory Office. please see individual inspection Report for any violations noted herein.

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BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

2.

Notice of Violation Form Source: BPLO The BPLS Consolidated Inspection Report Form serves as the 1st NOTICE OF VIOLATION, as indicated under RECOMMENDATION. However, each Regulatory Office may furnish a Letter of Violation for specific findings and its eventual resolution of violations.

PROCEDURE 2: CONDUCT INSPECTION

A.

Procedure Summary
Procedure Flow Personnel Responsible Documents & Records

START

PREPARE FOR INSPECTION

BPLO/Team Leader Inspectorate Team Members

CONDuCT INSPECTION

BPLO/Team Leader Inspectorate Team Members

Related Documents: 1. Mission Order - Source: Mayors Office 2. Inspection Checklist - Source: Per Regulatory Office 3. BPLS Consolidated Inspection Form (7 copies) - Source: BPLO 4. Notice of Violation Form (3 copies/establishment) - Source: Per Regulatory Office 5. List of Establishments to Inspect - Source: BPLO 6. BPL Consolidated Inspection Form (7 copies) - Source: BPLO

PREPARE INSPECTION REPORT

BPLO/Team Leader Inspectorate Team Members

END

Record: 1. Filled-out and signed BPLS Consolidated Inspection Form (1 copy to establishment, 1 copy to BPLO, 1 copy per Inspector) 2. Filled-out and signed Inspection Report Form from each Regulatory Office (1 copy to establishment, 1 copy to BPLO, 1 copy per Inspector)

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

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B. 1.

Implementing Guidelines Establish and observe protocol during inspection Show identification paraphernalia: a. Identification card b. Uniform c. Approved and signed Mission Order BPLS Inspectorate Team Leader introduces the team (and the offices being represented) to the manager or owner of the business establishment and declare their purpose of visit Extend courtesy at all times Conduct inspection discretely to avoid creating a negative impression on the business Gather all pertinent information during inspection Refer to Inspection Checklist per regulatory office Take turns in asking questions Clarify responses when necessary Take pictures (if necessary) for documentation purposes

2.

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BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

PROCEDURE 3: PREPARE INSPECTION REPORT

A.

Procedure Summary
Procedure Flow Personnel Responsible Documents & Records

START

PREPARE FOR INSPECTION

BPLO/Team Leader Inspectorate Team Members

CONDuCT INSPECTION

BPLO/Team Leader Inspectorate Team Members

Related Documents: 1. Mission Order - Source: Mayors Office 2. Inspection Checklist - Source: Per Regulatory Office 3. BPLS Consolidated Inspection Form (7 copies) - Source: BPLO 4. Notice of Violation Form (3 copies/establishment) - Source: Per Regulatory Office 5. List of Establishments to Inspect - Source: BPLO 6. BPL Consolidated Inspection Form (7 copies) - Source: BPLO

PREPARE INSPECTION REPORT

BPLO/Team Leader Inspectorate Team Members

END

Record: 1. Filled-out and signed BPLS Consolidated Inspection Form (1 copy to establishment, 1 copy to BPLO, 1 copy per Inspector) 2. Filled-out and signed Inspection Report Form from each Regulatory Office (1 copy to establishment, 1 copy to BPLO, 1 copy per Inspector)

B. 1.

Implementing Guidelines Prepare the BPLS Consolidated Inspection Report Form (immediately after the inspection to provide the owner of the establishment with a copy) a. The BPLS Inspectorate Team Leader shall fill up the BPLS Consolidated Inspection Form except for the designated section for each Regulatory Office.

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

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b.

c. d.

e.

f.

The Representatives of the Regulatory Offices shall indicate their Findings and Remarks as provided in the form. Each Representative shall print their complete name and sign above their respective printed names. The BPLS Inspectorate Team Leader shall indicate the Recommendation then print his/her complete name and sign above his/her printed name. The BPLS Inspectorate Team Leader shall request the manager or owner of the establishment to print his/her complete name and sign above his/her printed name. Copies of the Filled-up BPLS Consolidated Inspection Form shall be provided to the: i. Manager or owner of the establishment ii. Representatives of each Regulatory Office (1 copy each) iii. BPLS Inspectorate Team Leader The BPLS Inspectorate Team shall explain to the manager or owner of the establishment the Findings, Remarks and Recommendation stated in the form.

2.

Prepare the Notice of Violation Form (if necessary) a. The Representatives of the Regulatory Offices shall fill up the Notice of Violation Form. NOTE: The BPLS Consolidated Inspection Report Form serves as the First Notice of Violation. The Representatives of the Regulatory Offices shall indicate their Findings and Remarks as provided in the form. Each Representative shall print their complete name and sign above their respective printed names. The Representatives of the Regulatory Offices shall request the manager or owner of the establishment to print his/her complete name and sign above his/her printed name. Copies of the Filled-out Notice of Violation Form shall be provided to the: i. Manager or owner of the establishment ii. Representative of the concerned Regulatory Office iii. BPLS Inspectorate Team Leader The Representative of the concerned Regulatory Office shall explain to the manager or owner of the establishment the Findings, Remarks and Recommendation stated in the form.

b.

c.

d.

e.

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BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

PART 4
EVALUATING THE BPLS INSPECTION PROCEDURE

Just like any endeavor, the BPLS Inspection Procedure and the BPLS Inspectorate Teams success or failure can be ascertained with regular monitoring and evaluation. Monitoring ensures that the procedure is met in accordance to each team members role and area of responsibility; while evaluation assesses the efficiency and efficacy of each step in the procedure in relation to target results. It is important, therefore, that monitoring and evaluation be done as it reveals relationships among key variables and provides insight into process behavior; thus allowing regular review for process improvement, for the benefit of those we serve. These regular reviews can be conducted right after a series of inspections, ideally a week and at most a month after. In case of an unexpected incident during the inspection disrupting the whole procedure, an immediate review after the inspection is recommended. The following are the suggested guidelines on the Review and Assessment of Inspection Procedure A. Assess experiences encountered during the inspection of establishments 1. Set a regular meeting for this activity 2. Assign a documenter of the activitys outcome 3. Discuss the BPLS Inspection Process and Logistics What worked? What needs to improve? 4. Discuss the experiences in handling managers and owners of the establishments What worked? What needs to improve? 5. Discuss relevant concerns and formulate solutions 6. Summarize all agreements B. Document the BPLS Inspection Review 1. The documenter shall prepare a report (referring to points A.3 to A.6 as indicated above) on the BPLS Inspection Review. 2. Adjustments shall be made on the BPLS Inspection Procedure details, if necessary.

BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

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PART 5

THE BPLS INSPECTION PROCEDURE SUCCESS MECHANISMS

The following elements, if present, can contribute to the successful creation of the Inspectorate Team and sustaining its operation all year round: 1. Support of the Local Chief Executive The support of the Local Chief Executive is very vital in the creation of the BPLS Inspectorate Team and in enabling it to sustain its operation. 2. Coordination and Cooperation among Regulatory Offices There is a need to have a clear understanding of the coordinative relations of each office with the other regulatory offices who are members of the Inspectorate Team. This is to ensure coordination, cooperation and proper execution of duties and responsibilities among member-regulatory offices of the Inspectorate Team. 3. Annual Orientation and Re-orientation on Pertinent Provisions of the Law The success and efficacy of the Inspectorate Team can be further enhanced with continuing education in the form of annual orientation and re-orientation on pertinent provisions of the law. This somehow also serves as an evaluation of their performance. It facilitates in putting everything on the right track. 4. Legal Counsel Aside from continuing education, the presence of a legal counsel, who the team can consult on legal matters, is an important success mechanism that the LGU may provide to the Inspectorate Team. It can provide legal support to the Inspectorate Team whenever they encounter legal concerns.

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BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

5.

Records Management System This is to ensure that necessary information and data are in order necessary for proper monitoring of results and initiatives.

6.

Logistic Support( i.e. vehicle, gasoline and driver) and Uniform This is necessary to facilitate movement and mobility. The provision of uniform, on the other hand, adds dignity to the person and position.

7.

Institutional Incentive The incentive may come in a form of recognition or additional bonus at the end of the year if the LGU will be able to realize or exceed its estimated income on business taxes and other related revenues as a result of effective inspection and monitoring.

8.

Information, Education and Communication All government offices are mandated to post the process flow concerning their office, in the vicinity of their office, conspicuous to the public for their guidance. This mandate has been the subject of RA 6713 approved in 1989 and reiterated in RA 9485 The Anti Red Tape Law of 2007. These Mechanisms are additional tools which can contribute to the successful creation and implementation of a sound BPLS Inspectorate Team.

Choice of color can also contribute to creating a positive effect. Since black has been the colour of the SWAT or the military, to adopt the same as the colour of the Inspectorate Team may have an intimidating effect on the investor. The conduct of inspection is not synonymous with raid. Thus, a bright colour would be a better choice for the Inspectorate Team uniform. It would be reflective of the friendliness of the LGU towards investors.

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PART 6

FREQUENTLY ASKED QUESTIONS

A. Health & Sanitation 1. What is to be done with businesses such as carenderias wherein careful inspection reveal that they do not or cannot comply with existing laws and ordinances?

They have to be compelled to comply with the basic requirements especially on health and sanitation. If not, the LGU should have them closed. ALL food handlers must have a health card, whether working in big or small establishments. Hence, at the very least carenderias MUST comply with this requirement. Basic compliance on sanitation and hygiene cant be compromised.
2. What is the Turn Around Time (TAT) for the release of health cards and clearances?

The TAT for health cards would be within 24 hours for NON FOOD HANDLER, and for FOOD HANDLER, 2-3 days. However, some required tests, both for individuals and establishments, may take up to 5 days.
3. If an established business is found to be in violation of Sanitation Laws and ordinances, can their BP be revoked?

The Sanitation and Fire Safety Clearances are revocable should any business be found in violation of laws and ordinances.
4. What other requirements should a mall/commercial building comply with?

Commercial establishments as such may be required a Waste Water Discharge Permit.

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BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

B. Fire 1. What is to be done when upon interpretation of the law, the Fire Code and Building Code are in conflict? Which should prevail? The Fire Code and the Building Code complement each other. The key in differentiating each regulatory office is that the Building Code focuses on OCCUPANCY and STRUCTURE; while the Fire Code focuses on SAFETY.

Minor inconsistencies may just be overlooked as long as it would not compromise the safety of the public. The discretion and good judgment of the official concerned play a great role in the implementation of the laws. Actual physical evaluation of the situation is most needed by which the exercise of discretion of the concerened office head should be based.
2. If an established business is found to be in violation of Fire Safety Laws and ordinances, can their BP be revoked? The Sanitation and Fire Safety Clearance are revocable should any business be found in violation of laws and ordinances. C. Building 1. What should the Inspectorate Team do when local building code fees are higher than stipulated in the National Building Code? The Inspectorate Team may remind the respective establishment of the following: a. A local ordinance cannot amend or supersede a National Law. b. If the National Law is unclear, then local laws may specify. D. Zoning 1. What is to be done with businesses such as videokes where they have become irritants to the area where they are established, particularly in residential areas? Videokes or nuisance businesses maybe ordered closed, based on the pertinent laws.

The LGU should promulgate the rules and regulate the operation of nuisance establishments. In the absence of a local ordinance, the LGU may resort to the provision of public laws.
2. What is to be done with a piggery that declared itself established at 3 meters from the creek but actual inspection revealed it was only 1.5 meters?

Piggeries must establish themselves at designated agricultural district. If however, there is no designated district the following may be done: a. Ask the business to comply with the legal setback of 3 meters. b. Issue a certificate of non-coverage as they exceeded the declared area of use.

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3.

But what if they do not comply as they have already been issued the BP?

If they do not comply then inform the business that non-compliance to laws and ordinances is grounds for refusal to the issuance of the BP due to misrepresentation.
4. What about LPG refilling stations? If they are located in residential areas what can be done to them as they pose a hazard to residents?

They MUST comply with all the provisions for an LPG refilling station under the technical standards of the Department of Energy and the zoning ordinance of the LGU.

What do you do with establishments found to be non-compliant in one or all areas necessary for the issuance of Business Permit? It is necessary to require establishments to comply with the stipulated requirements; that is why we hold the inspections. Non-compliant can be justification for closure or revocation of the Business Permit in case of renewals.

REFERENCES AND FURTHER READINGS Thorough and up-to-date knowledge of the laws and ordinances of ones office is a fundamental part of a BPLS Inspectorate Team members role and function. In order to have a ready reference and to keep abreast with laws and amendments affecting those we serve, the following is a list of essential documents and sources of information for further reading: 1. The Code on Sanitation of the Philippines (PD No. 856) Published by the Department of Health, 1976, reprinted in 1998 with the support of UNICEF, this details the comprehensive Implementing Rules and Regulations and amendments to Health and Sanitation laws Please go to the Department of Health website http://www.doh.gov.ph

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BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

2. The Fire Code of the Philippines (PD No. 1185) a. Fire and Safety Assessment Report (FALAR) b. Republic Act No. 9514l This is an Act establishing a comprehensive Fire Code of the Philippines, repealing Presidential Decree No. 1185 and for other purposes Please go to the Bureau of Fire Prevention website http://www.bfpresponse.gov.ph 3. Building and Accessibility Laws a. National Building Code of the Philippines (Republic Act No. 6491) b. New National Building Code of the Philippines (PD No. 1096) This is referred to as the Revised Implementing Rules and Regulations of the National Building Code of the Philippines, also otherwise known as the IRR Please go to http://www.elib.gov.ph (this website is applicable to all areas of inspection) c. Batas Pambansa Bilang 344 Accessibility Law This is an Act to enhance the mobility of disabled persons by requiring certain buildings, institutions, establishments and public utilities to install facilities and other devices. Please go to the National Council for Disability Affairs website, http://www.ncda. gov.ph/disability-laws 4. National Internal Revenue Code (PD 1158) a. Amendments to NIRC PD No. 1994 b. Amendments to NIRC Executive Order No. 273 c. Republic Act No. 8424, otherwise known as the Tax Reform Act of 1997 Please go to the Bureau of Internal Revenue website http://www.bir.gov.ph/ taxcode/taxcode.htm 5. Zoning and Land Use a. Republic Act No. 7160 b. New National Building Code of the Philippines (PD No. 1096) c. National Land Use Act of the Philippines Senate Bill No. 76 Please go to http://www.elib.gov.ph (this website is applicable to all areas of inspection) 6. Other website for reference: http://www.congress.gov.ph/download/index

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German Technical Cooperation

GTZ, the German Governments international development agency, has cooperated with the Philippine Government for more than 33 years. Through the implementation of its different programs, GTZ strengthens the capacity of people and institutions to improve the lives of Filipinos in this generation and generations to come. GTZ works to balance economic, social and ecological interests through multi-stakeholder dialogue, participation and collaboration. It synergizes strengths and resources to achieve measurable results. The GTZ, through its Decentralization Program (DP) aims to improve governance, which is oriented to the needs of the population, at the national and local levels. Its three components, namely, Political Decentralization, Fiscal Decentralization and Capacity Development System for local governments, are meant to reinforce GTZs and its implementing partners initiatives at making decentralization work. The program aims to achieve this by (a) conducting a demand-oriented, conflict-sensitive planning, building the basis for budgeting in local governments; (b) contributing to good local fiscal governance through fair, adequate, transparent and efficient tax system and (c) disseminating to the local governments innovative, conflict-sensitive approaches for an improved decentralization, from the capacity development provider(s).

Contact: Dr. Herwig Mayer GTZ-Decentralization Program Manager Unit 2A, PDCP Bank Centre corner V.A. Rufino & L.P. Leviste Streets, Salcedo Village, Makati City Philippines Phone (+63 2) 8136821 Fax (+63 2) 8928843 www.decentralization.org.ph

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BPLS INSPECTORATE TEAM OPERATIONS MANUAL: A Guide For Local Government Units

Deutsche Gesellschaft fr Technische Zusammenarbeit (GTZ) GmbH - German Technical Cooperation GTZ Decentralization Program Unit 2A, PDCP Bank Centre Cor. V.A. Rufino & L.P. Leviste Streets Salcedo Village, Makati City Philippines Phone (+63 2) 813-6821 Fax (+63 2) 892-8843 www.gtz.de