Business Proposal of Sari Sari Store

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					G I S   C O O K B O O K   F O R   L G U S




4.18.02 Case Study - A Synchronized Business Permit Application cum
        CLUP Data Set

Presentation of the Study Area
For the study on synchronized Business Permit Application cum CLUP data set, the
study area was Ormoc City. The study focused on their current process in handling
the issuance of Building Permits, and a survey was done in Barangay District 7
located in the Central Business District (CBD). District 7 is a highly commercialized
and a completely zoned barangay that consists of one whole block located next to the
shopping mall in the urban center of Ormoc City, with 52 business activities that have
been issued Business Permits.




In order to compare the handling of Business Permits in a city like Ormoc, with that of
a low-income LGU, the same study was also conducted in the Municipality of Laurel,
Batangas.

Situation Today in Ormoc City
The issuance of Business Permits is handled
by the Licensing and Franchising Office under
the Office of the City Mayor and is renewed
every year. The majority of permits applied for
is from the service sector and in particular, the
transportation businesses. There was a sharp
increase in the number of permits issued when
the deregulation of issuance of tricycle plate
numbers was implemented. Before that, the
issuance of transport operation was controlled
by the Sangguniang Panlungsod. The
issuance of Business Permits requires the
applicant to secure a Barangay Clearance,
Tax Certificate, SSS or Pag-IBIG Clearance,
Health Clearance and a Locational Clearance.
                                                    Emilio Tingson, Licensing and Franchising
                                                    Office.

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The Locational Clearance is issued by the Planning office to ensure that the business
activity is in line with the current zoning ordinance.

In 2005, the City issued 3,456 business permits where 2,680 were renewal permits
and 776 were new.

The required clearances needed in getting a business permit are only necessary for
first time applicants. When a permit holder applies for a renewal, the clearances
submitted by previous applications are still valid. In effect, those business activities
located in zoned areas that are in conflict with the land use still continue to have valid
permits, if these permits were issued before the current zoning was approved.

When a business permit is issued or renewed, the permit gets a new license number.
When a new permit is issued, the business holder also gets a license plate number to
display in the business facility. This plate shows the license number of the first year
when the business applied for a permit. When the permit is renewed, the owner gets a
new license number but still keeps the old plate. Proof of renewal is instead displayed
with a tax sticker attached to the plate.

                                                                 The permit records are kept in
                                                                 a computer system developed
                                                                 by the Information Technology
                                                                 Center under the Planning
                                                                 Office. The system is a user
                                                                 friendly system with simple
                                                                 forms for encoding data from
                                                                 the applications. It also
                                                                 assigns     permit   numbers,
                                                                 computes fees and penalties,
                                                                 among other functions.

                                                   The system is based on a
        Moses T. Perez with the system for Business Permits
                                                   network solution with a
                                                   centrally stored database that
keeps the tables containing the data of the Business Permit Records such as
taxpayer’s name, business name, address, tax base and fees, license number, date
and other data.

Situation Today in Laurel
In the Municipality of Laurel, the issuance
of business permits is handled by the
Mayor´s Office and is renewed every year.
The officer in charge of the issuance of
business permits is License Inspector Joe
De Sagun. The majority of permits applied
for are fish cages and sari-sari stores. In
2005, the number of business permits
                                                              License inspector Joe De Sagun

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issued in Laurel was 245, of which 60 was for fish cages.

The records kept on hand are handwritten books and the permit numbers issued start
at number 1 for each year.

The records are divided into two separate books with one book specifically used for
Fish Cages. It contains information on the number of cages, capacity of the cage and
other information. The other book is for other types of business activities which
contains information on the business permits based on the logged-in records. These
include the Permit Number, Business Name, Address, Nature of Business, Amount
Paid, Official Receipt Number, Date Received, Remarks (New or Renewal), Date
Released and the signature of the Licensing Officer.




                                     Business Permit Records in Laurel

Proposal
The proposal presents a method to gather and to build up a Business GIS for the
LGU that can be used for the issuance of Business permits, for the renewal of the
CLUP, and for other activities such as the preparation of statistical maps on
development in the LGU, and tourist information.

The proposed tables to keep digital records of the Business Permits is a start up level
for LGUs without current digital records and let them get started in MS Excel where a
table sheet containing the attributes are stored and then linked to a GIS layer holding
the surveyed locations of the business establishments.

In the case of Ormoc City and other LGUs with current digital systems, the suggestion
is to instead keep the attribute database that is currently being used, and extend it
with a link to the GIS.

Attributes
The attributes kept in the Business Permit Record are suggested to be divided into
two tables: “Table 1” contains information about the actual permit with regard to



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ownership and type of business establishment, and “Table 2” contains data about
payment of fees and taxes.

Table 1: “Business Permit”. A similar table is also found in excel format in Chapter
5.03.38.

 Attribute name:                             Description:
 PER_ID                                      Business Permit ID, Unique ID for the
                                             Business Permit, the permit ID should be
                                             sustained over time and not be changed
                                             upon renewal.
 PER_YR                                      Permit Year, The year of which the
                                             permit is valid
 PER_HOLD                                    Permit Holder, Name of the applicant for
                                             the Business Permit
 BIZ_NM                                      Name of Business, Name of the
                                             Business facility
 B_NM                                        Barangay Name, Name of Barangay
                                             where the business is located.
 BIZ_ADR                                     Business Address, Address were the
                                             business is located
 BIZ_CLASS                                   Classification      of    Business,     the
                                             classification    of     businesses     are
                                             “Retailers”, “Services”, “Manufacturers” or
                                             “Banks and Other Financial Institutions”
 BIZ_LINE                                    Line of Business, Line of business
                                             activity, for example “Internet Café”,
                                             “Petrol     Station”,    “Sari-sari  store”
                                             “Supermarket,” etc.
 EMP_NO                                      Number of Employees, Number of
                                             Employees working in the business.
 PER_RM                                      Permit Remarks, State whether the
                                             permit is “NEW” or “RENEWED”
 LIC_DT                                      License Date, Date when license was
                                             issued
The table can be extended to facilitate specific needs in different LGUs. For example:
to handle additional information about fish cages such as those in Laurel.


Table 2: “Business Permit Fees and Taxes”

Attribute name:                             Description:
PER_ID                                      Business Permit ID, Unique ID for the
                                            Business Permit, the permit ID should be
                                            sustained over time and not be changed
                                            upon renewal.



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Attribute name:                             Description:
PER_TAX                                     Tax Base, Basis for taxation of the
                                            business activity
LIC_FEE                                     License Fee, LGU fee for issuance of
                                            license
INSP_FEE                                    Inspection Fee, Annual Fee for
                                            inspection of business activity
POL_FEE                                     Police Fee, Fee for Police Services
HP_FEE                                      Health Permit Fee, Fee for issuance of
                                            Health Permit
GC_FEE                                      Garbage Collection Fee, Fee for
                                            collection of garbage.
SP_FEE                                      Sanitary Permit Fee, Fee for issuance of
                                            Sanitary Permit.
FI_FEE                                      Fire Inspection Fee, Fee for fire
                                            inspection of business facility.
PEN                                         Penalty, Penalty for delayed payment

GIS layer
In order to utilize GIS for planning and monitoring, it is necessary to have the locations
of the businesses stored in a GIS layer that is possible to link to the Business Permit
Records.

If the LGU has an updated and accurate address database, GIS Records may be
linked to that layer. But in most cases, there is no such data available at this time. The
suggestion is to create a specific point feature layer to hold the location of the
business facility and the Unique Permit ID to be able to link with the Records. It is also
suggested that the GIS layer should contain a link to photos of the business facility.

GIS Table: “Business Permit GIS”
Attribute name:                             Description:
PER_ID                                      Business Permit ID, Unique ID for the
                                            Business Permit to be able to link to the
                                            Business Permit Records
PHOTO                                       Photo, Link to digital photo of the business
                                            facility

Method
Encode the attribute data in the Excel tables for the current Business Permit Records

Conduct a GPS survey of the business facility to gather the locations of the
businesses and to build up GIS data containing the coordinates and the Business
Permit ID

Set a date for when to start using the new method. From then on, all new Business
Permits issued must be surveyed with a GPS.



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When a new Business Permit is to be issued, an inspection is conducted where the
inspector brings a handheld GPS. The inspector makes readings form the Business
location and takes digital photos of the business activity.

The GPS reading and the digital photo form the business site will be handed over to
the planning unit together with the Business Permit ID. The planning staff will then
translate the GPS reading into a digital map containing the Permit ID and a link to the
photo.

Distribution of Responsibilities
The Licensing Officer under the Mayor’s office is the prime user of the Business
Permit Records. It is the custodian of these records whether they are kept in an
analog or digital format. It is suggested that in case of a shift from an analog record to
a record kept in Excel, the custodian should still be the Licensing Officer.

The Planning Unit which has the overall responsibility for spatial data in most LGUs
will have the responsibility of building up and keeping the Business Permit spatial
layer up to date.

Advantages
The Licensing Office has a geographical view of the distribution of business permits in
the municipality/city for easy reference and monitoring. The Business Permit layer can
be used with the zoning layer to make a map that will display Business Permits that
are in compatible or not compatible with zoning ordinance.

During the initial survey of Business Permits, it was found out that some business
activities lacked the permits that could be used for monitoring purposes.

The Business Permit GIS can also be used for other purposes such as the
preparation of tourist maps to show the locations of important tourism facilities. It can
also be used to analyze and monitor the development of business activities in the
LGU. If the data is properly encoded, the system can provide answers to questions
such as:

         Show the distribution of Business Permits in the LGU and the density of
         Business Permits per Barangay
         Show the Business Permit Holders that have not paid their fees for 2006
         Show the Barangays with highest increase of business activities between
         2005-2007
         Show a map of all the Internet Cafes in the municipality / city
         Show all the hazardous business activities located in an area zoned as
         residential

The Mayor’s office will have a good picture of the distribution of business activities to
be used for monitoring of permits.




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The Planning Unit will have a good picture of what is going on in the municipality/city
with regard to land use for business activities such as those utilized for commercial
and industrial purposes. The unit may also find it a useful source of information for
monitoring and the updating of the CLUP.




          Sample Map showing Business Permits and there classification in Barangay District 7, Ormoc City




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