Decisions - Council - 2015-09-30 - Durban Minutes and... · Web viewKindly note that the word "...

KRR(2015-09-30)(SAM)[CHALL-134430] 2015-10-02

COUNCIL DECISION CIRCULAR : MEETING HELD ON 2015-09-30

TO ALL DEPUTY CITY MANAGERS AND HEADS:

Attached please find decisions adopted by the Council at its meeting held on 2015-09-30.

Deputy City Managers and Heads are kindly requested to facilitate implementation of the decisions impacting their Clusters and Units within the applicable timeframes.

Kindly note that the word "ADOPTED" marked in bold at the end of the recommendation confirms that the item has been approved by Council and is ready for implementation. Other relevant status will be reflected at the end of the recommendation to indicate the position taken by Council on a particular item.

Should further information be required on any item on the Council agenda, kindly contact Vishnu Ramsunder on Telephone No.(031) 311-2371 or through email.

- 2 - (eThekwini MunicipalityCouncil Decisions - 2015-09-30)

1. FIRST REPORT OF THE EXECUTIVE COMMITTEE : MEETING HELD ON TUESDAY, 2015-09-08

1.1 NOTING OF RULE OF ORDER 28: REQUEST FOR FINANCIAL ASSISTANCE FOR YOUTH AGAINST XENOPHOBIA MUSIC FESTIVAL BY TZOZO PROJECTS (PTY) LTD (7/4/1 & 19/2/1)(Page 53)

COMMITTEE RECOMMENDS:

That the approval given by His Worship the Mayor, Councillor James Nxumalo, in terms of Rule of Order 28, to allocate an amount of R300 000, 00 (Three Hundred Thousand Rand) to Tzozo Projects (Pty) Ltd to host the Youth against Xenophobia Music Festival thus promoting a message of peace to the community, be noted.

Vote: 10371.07855; R300 000.00; FC No.: 08/29NOTED.

1.2 NOTING OF RULE OF ORDER 28: APPROVAL OF EXPENDITURE FOR TRAVEL AND ACCOMMODATION OF NOMINATED WOMEN COUNCILLORS TO PARTICIPATE ON REED DANCE HELD 04 SEPTEMBER 2015, KWANONGOMA (4/5/1/8/9)

(Page 57)

With the City providing financial support for maidens residing within the eThekwini Municipal area to participate at the Annual Reed Dance at Enyokeni Royal Palace, KwaNongoma, it was considered imperative to play effective oversight role by having a delegation representing the City in this event. It was submitted that support was also required to ensure unity amongst the maidens coming from different parts of the City and also collectively address issues associated with their participation in this event, hence, the decision for participation by women Councillors.

Confirmation was given that budget provision of R60 000.00 has been made available but that the actual expenditure will be less this amount in view of the event having coincided with the 2022 Commonwealth Games host City announcement attended by some of the Councillors who have also been nominated to attend the Reed Dance. With certain reservations having been expressed on the use of the Rule of Order 28 on the issue which should have been included on prior report on Reed Dance already dealt with by the Executive Committee, a proposal was subsequently made to adopt a standing decision that a delegation of the City comprising Councillors should participate at the Annual Reed Dance. This was agreed to.

Accordingly,


1.2.1 That the approval given by His Worship the Mayor, Councillor James Nxumalo, in terms of Rule of Order 28 in respect of the provision of transport and accommodation for women Councillors nominated to form part of the eThekwini Municipality’s delegation who participated at the Reed Dance 2015


(UmkhosiwoMhlanga) at Enyokeni Royal Palace, KwaNongoma, on 2015-09-04, at a budget of R60 000.00 (Sixty Thousand Rand Only), be noted.

1.2.2 That Council resolves that for the City to play effective oversight role over the Annual Reed Dance, from the eThekwini participants perspective, Councillors’ participation in this event be a standing decision, with a specific number of Councillors to participate to be determined at the time of each event.

Vote: 12723.11908; R60 000.00; F.C. 08/18 Recommendation 1.2.1 NOTED and Recommendation 1.2.2 ADOPTED.

1.3 NOTING OF RULE OF ORDER 28: APPROVAL FOR 10 COUNCILLORS TO ATTEND THE PROVINCIAL GOLDEN GAMES FOR SENIOR CITIZENS, 01 - 03 SEPTEMBER 2015, UTHUNGULU DISTRICT MUNICIPALITY (19/1/1/2/1)

(Page 59)

Cognisance was taken of the fact that political leadership needed to strengthen its efforts to support Senior Citizens representing the City on the Golden Games, hence, the participation by Councillors. Certain reservations were once again expressed on the use of Rule of Order 28 on the basis that the event could have been dealt with through forward-planning since it was an annual event. It was then agreed to adopt a similar approach of approving participation by Councillors on these games as a standing decision and deal with details at the time of the event.

On this basis,


1.3.1 That the approval given by His Worship the Mayor, Councillor James Nxumalo, in terms of Rule of Order 28, in respect of the provision of transport and accommodation for Councillors nominated to form part of the eThekwini Municipality’s delegation who participated at the Provincial Golden Games for Senior Citizens, at the Richards Bay Sports Complex, uThungulu District Municipality, from 2015-09-01 to 2015-09-03 at a total cost of R38 000 (Thirty Eight Thousand Rand), be noted.

1.3.2 That Council resolves that for the City to play effective oversight role over the Senior Citizens Games from the eThekwini participants perspective, Councillors’ participation in this event be a standing decision, with a specific number of Councillors to participate to be determined at the time of each event.

Vote: 32123.11960; R38 000.00; FC 08/19Recommendation 1.3.1 NOTED and Recommendation 1.3.2 ADOPTED.

1.4 BACK TO BASICS REPORT AS AT 30 JUNE 2015 (2/3/2/1/2 & 2/10/1/1/1)

(Page 74)

The state of Municipalities in the country is being monitored by the Department of Cooperative Governance and Traditional Affairs (COGTA) through the Back-to-Basics Programme. As such, Municipalities are expected to submit monthly


reports on the implementation of the Back-to-Basics Programme. Attached herein is the report submitted by the eThekwini Municipality for the month of June 2015. The report outlines the performance of the City during the month under review as it pertained to service delivery as well as governance matters in terms of Council and Committee meetings held. On a proposal made that future reports should comprise detailed information to explain indicators given, it was advised that a standard template from COGTA was being used to report the City's performance but that additional information required will then be given as a separate Annexure to the Back-to-Basics report.


That Council notes the attached Back-to-Basics report for the month ended 30 June 2015 and trend analysis from January to June 2015, compiled in terms of Circular No. 47 of 2014 from the Department of Cooperative Governance and Traditional Affairs (GOGTA), to serve as a tool to assess the state of the eThekwini Municipality for COGTA to intervene where necessary, it being recorded that future reports will comprise additional information to explain performance indicators contained in the report for the benefit of the Executive Committee.NOTED.

1.5 ESTABLISHMENT OF CLUSTERS TO REPORT TO THE ETHEKWINI STRATEGIC INFRASTRUCTURE PROGRAMME STAKEHOLDER FORUM (4/1/1/1)

(Page 102)


1.5.1 That Council approves the establishment of two (2) remaining Clusters, namely, Inland Hubs & Corridors Cluster and Aerotropolis Cluster to deal with specific matters relating to geographical or functional areas and report to the eThekwini Strategic Infrastructure Programme Stakeholder Engagement Forum.

1.5.2 That Council reaffirms the dates of meetings of the eThekwini Strategic Infrastructure Programme Stakeholder Engagement Forum to be held on a quarterly basis on the last Thursday of the month, as approved on 2015-03-31 as follows:-

● Wednesday, 23 September 2015 (Due to Thursday being Heritage Day)● Thursday, 03 December 2015 (Due to Council recess commencing

10 December 2015)● 24/31 March 2016 (Subject to no Council Meeting or recess)● 23/30 June 2016 (Subject to no Council Meeting or recess)

1.5.3 That Council notes that the establishment and the functioning of the two Clusters referred to in .1 above will be undertaken utilizing the existing budget, it being recorded that additional funding required will be identified through savings and mid-term adjustments.


Financial Implications:

Item Cost Vote NumberSpecial follow up meeting for Port Development Cluster R35 000.00 32313.04115Port Development Cluster first quarter meeting R35 000.00 32313.04115Port Development Cluster second quarter meeting R35 000.00 32313.04115Establishment of two (2) Clusters – R70 000.00 R34 650.00 32313.04115

R35 350.00 32313.06756eThekwini SIP SEF first quarter meeting R100 000.00 32313.06756eThekwini SIP SEF second quarter meeting R100 000.00 32304.06756eThekwini SIP SEF third quarter meeting R100 000.00 32304.06756eThekwini SIP SEF fourth quarter meeting R50 000.00 32304.06756

R50 000.00 32304.06756

FC No.: 06/17ADOPTED.

1.6 REQUEST FOR HIS WORSHIP THE MAYOR, COUNCILLOR JS NXUMALO OR HIS NOMINEE; NOMINATED COUNCILLORS; AND OFFICIALS TO ATTEND THE NORTH EAST ENGLAND AND SOUTH AFRICA TRADE AND CO-OPERATION CONFERENCE AND THE RUGBY WORLD CUP MATCH BETWEEN SOUTH AFRICA AND SCOTLAND IN NEWCASTLE UPON TYNE, UNITED KINGDOM, 28 SEPTEMBER-04 OCTOBER 2015 (14/1)

(Page 112)

As part of the existing Memorandum of Agreement between the City of eThekwini and the City of Newcastle Upon Tyne, a Conference has been convened to further trade relations between these two Cities. As such, the eThekwini delegation is participating in this Conference. In view of the Conference taking place in the same City where the South African Rugby Team is playing with Scotland in the 2015 Rugby World Cup, authority is also sought for the eThekwini Municipality delegation to attend this rugby match to show patriotism.


1.6.1 That authority be granted for His Worship the Mayor, Councillor James Nxumalo, or his nominee; nominated Councillors; and Officials to travel to Newcastle Upon Tyne to attend the North East England and South Africa Trade and Cooperation Conference in Newcastle United Kingdom from 28 September to 04 October 2015, it being recorded that the delegation will also attend the Rugby World Cup match between South Africa and Scotland to show patriotism.

1.6.2 That all delegates be considered to be on Municipal Business while travelling to and from as well as during the period of the Conference.

1.6.3 That funding for the delegates be covered as per the financial implications in the table below:-


Name Flights Accommodation

Registration Visa S & T Leeds Train Vote Number

Mayor JS Nxumalo

R65 000.00 R15 000.00 R1 200.00 R1 500.00 As per policy R2 000.00 32123.11960

Executive Committee Councillor


Executive Committee Councillor


Official 1 from Economic Development and Planning


Official 2 from Economic Development and Planning


Official 3 from Tourism

R15 000.00 R15 000.00 R1 200.00 R1 500.00 As per policy R2 000.00 To be confirmed

Official 4 from IGR


The amount with regard to accommodation in respect of “Official 1 from Economic Development and Planning” and “Official 2 from Economic Development and Planning” was AMENDED by the deletion “R30 000.00” and “R60 000.00” respectively and by the substitution therefor of the amount “R15 000.00”.The above recommendations of the Executive Committee were thereafter, by the majority vote, ADOPTED.

1.7 RESCINDING OF DECISION REGARDING THE ACCOMMODATION OF THE “SOUTH AFRICA IN THE MAKING” EXHIBITION AT MOSES MABHIDA STADIUM (13/2/1/2/1)

(Page 125)

Council previously adopted a decision to accommodate the "South Africa in the making" Exhibition at Shop No. 5 Moses Mabhida Stadium. After taking the exact measurements of the square meters it was discovered that the space in Shop No. 5 is inadequate for the exhibition thus a need to source a bigger space at Shop No. 7. This submission therefore seeks permission to rescind the previous decision and approve the use of Shop No. 7 on different terms and conditions.

Accordingly,


1.7.1 That Council rescinds the following resolution adopted at its meeting dated 2014-02-27:-

“That shop 5ac at Moses Mabhida Stadium be set aside for the purposes of accommodating this exhibition at a base monthly rent of R15 000.00 (Fifteen Thousand Rand Only) with an annual escalation fee of 8%”.


1.7.2 That subject to the adoption of .1 above, Council approves that Shop No. 07 at Moses Mabhida Stadium be set aside for the purpose of accommodating the “South Africa in the making” Exhibition at a base monthly rent of R55 896.00 (Fifty Five Thousand Eight Hundred and Ninety Six Rand) with an annual escalation of 8%.

1.7.3 That subject to the adoption of .1 and .2 above, the exhibition be hosted at Moses Mabhida Stadium for a period of 5 (five) years renewable.

Vote No.: 15530.09960; FC No.: 34/280; 2015/2016ADOPTED, by majority

1.8 RESEARCH INITIATIVE: GLOBAL ENVIRONMENTAL CHANGE JOINT RESEARCH PROGRAMME (32/2/2)(Page 128)

Council approved the signing of a Memorandum of Agreement (MOA) with the University of KwaZulu-Natal (UKZN) to undertake joint research projects. It has since been established that the nature of the procurement process involved in this matter will warrant the use of Section 36 of the Supply Chain Management Regulations. This approach therefore renders the signing of the MOA invalid. It is therefore requested to rescind the decision pertaining to the signing of the MOA to undertake joint research projects with UKZN.Given the circumstances,


1.8.1 That Council rescinds its decision adopted on 2015-06-24 relative to the “Request for Authority to engage in a second three-year partnership between eThekwini Municipality and the University of KwaZulu-Natal for KZN Sandstone Sourveld Joint Research Project (32/1/1/1/3/1)”, based on expert advice given that the complex nature of the procurement process involved on the matter warrants the use of Regulation 36 of the Supply Chain Management regulations.

1.8.2 That due to the value to be obtained from engaging with a specific local tertiary institution, with the required research capacity in the disciplines identified, and the lack of capacity existing in other local tertiary institutions with the focus fields of research, it is not possible to follow the normal procurement process, therefore the intention by the Acting Head : Development Planning, Environment & Management to submit a report to the Bid Adjudication Committee requesting to utilize Regulation 36(1)(a)(v) of the Municipal Supply Chain Management Regulations to appoint and implement an agent for the Global Environmental Change Joint Research Programme over the three-year period at the total contract value of R3 000 000, 00 (Three Million Rand), be noted.

1.8.3 That the City Manager record the reasons for any deviations and report it to the next meeting of Council and include it as a note to the annual financial statements in terms of Section 36(2) of the Municipal Supply Chain Management Regulations.

Vote No.:26440.04720 R1000 000.00 (2015/16)Vote No.: 26440.04720 R1000 000.00 (2016/17)Vote No.: 26440.04720 R1000 000.00 (2017/18)

FC No.: 46/26Recommendations 1.8.1 and 1.8.3 ADOPTED and Recommendation 1.8.2 NOTED.


1.9 REPORT OF THE ECONOMIC DEVELOPMENT AND PLANNING COMMITTEE: MEETING HELD ON 2015-09-03(Page R1)

1.9.1 Implementation of the Spatial Planning and Land Use Management Act (SPLUMA)(25/5/2/1):(Page 39 : Economic Development and Planning Committee - Agenda 2015-09-03)


1.9.1.1 That progress made in the implementation of the Spatial Planning and Land Use Management Act (Act No. 16 of 2013), to date, in respect of the following aspects, as outlined in the report by the City Manager, dated August 2015 be noted:-

● System of Delegations : The eThekwini Municipality Terms of Reference were reviewed and necessary amendments in respect of Part C (System of Delegations) and Part D (System of Administrative Delegations) amended to include SPLUMA requirements.

● Municipal Planning Tribunal : Appointment of the 7 member Municipal Planning Tribunal, comprising internal and external members from the Town Planning, Environmental Planning and Legal disciplines, was finalised by the City Manager on 2015-07-27. The first sitting of the Tribunal was on Wednesday, 2015-09-02.

● Planning By-law : the Department is currently working on a final draft of the Planning By-law which will be submitted to Council in due course.

● General Awareness of SPLUMA : Several awareness raising activities involving internal and external participants were undertaken. A follow up meeting with industry practitioners will take place during the mid-year review period to assess and review workflow processes and procedures.

● Appeal Structures : Internal and external appeal bodies, based on different categories of applications will be established.

● Status of the Town Planning Sub-Committee : Town Planning Sub-Committee meetings will continue as scheduled to consider Scheme amendments.

NOTED.

1.9.2 World Solar Challenge 2015 – University of KwaZulu-Natal (32/2/2):(Page 42 : Economic Development and Planning Committee - Agenda 2015-09-03)


1.9.2.1 That the entry of the University of KwaZulu-Natal (UKZN), School of Engineering, the first African participants, of the solar car iKlwa, in the Word Solar Challenge 2015, be supported.

1.9.2.2 That subject to .1 above, the best wish for safe journey and success in the Word Solar Challenge 2015 be conveyed to the University of KwaZulu-Natal team.


1.9.2.3 That subject to .1 above, the provision of R97 531.00 (Ninety Seven Thousand Five Hundred and Thirty One Rand Only) to the University of KwaZulu-Natal for the funding of the higher efficiency photovoltaic panels, be approved.

1.9.2.4 That subject to .1 above, the City Manager be granted authority to enter into an agreement with the University of KwaZulu-Natal to disburse the amount of R97 531.00 (Ninety Seven Thousand Five Hundred and Thirty one Rand), to utilise the Solar Car, iKlwa to promote the use of renewable energy, to promote the uptake of electric vehicles, and to increase awareness and interest in photovoltaic technology.

1.9.2.5 That subject to .1 above, a Mayoral reception be hosted for the University of KwaZulu-Natal team upon their return to eThekwini Municipality; and

1.9.2.6 That subject to .1 above, the Energy Office explore potential further support to the University of KwaZulu-Natal on the future iterations of the Solar Car and similar projects.

Vote No.: 10465.09300; R97 531.00; FC No.: 03/10ADOPTED.

1.9.3 C40 Cites Climate Leadership Group (32/2/2):(Page 80 : Economic Development and Planning Committee - Agenda 2015-09-03)


1.9.3.1 That the City Manager, on behalf of the eThekwini Municipality be authorised, to enter into a Memorandum of Agreement (MOU) with the C40 Cities Climate Leadership Group in order to access opportunities to enhance the climate change work of the eThekwini Municipality and broader service delivery, gain access to international and municipal practitioners that have relevant climate change related expertise and experience, access a platform that will allow eThekwini Municipal Officials to share their climate change related expertise and experiences with other municipal practitioners and to continue to position eThekwini Municipality as a leader in the Climate Change space; and

1.9.3.2 That subject to .1 above, the eThekwini Municipality be permitted to co-chair the Cool Cities Network of the C40 Cites Climate Leadership Group.ADOPTED.

1.9.4 Waste Materials Recovery Industry Development Cluster (20/1/6/1):(Page 84 : Economic Development and Planning Committee - Agenda 2015-09-03)


1.9.4.1 That the Head : Economic Development and Investment Promotion be duly authorised to continue participation in the eThekwini Waste Materials Recovery Industry Development Cluster, trading as USE-IT for the development, growth and competitiveness of the Waste Materials Recovery Industry Development Sector.

1.9.4.2 That subject to the approval of .1 above, the City Manager be authorised to conclude a Memorandum of Agreement (MOA) to promote development, growth and competitiveness of the industry development sector.


1.9.4.3 That subject to the approval of .1 and .2 above, the Head : Economic Development and Investment Promotion be duly authorised in accordance with the Memorandum of Agreement, to disburse the funds to USE-IT amounting to R2 100 000.00 (Two Million One Hundred Thousand Rand Only) (excl. VAT) for 2015/2016, 2016/2017 and 2017/2018 financial years in terms of Section 67 of the Municipal Finance Management Act and in accordance with the Memorandum of Agreement.

1.9.4.4 That the Head : Economic Development and Investment Promotion be authorised to report to the Economic Development and Planning Committee on progress on this initiative on an annual basis.

VOTE NO. AMOUNT YEAR

12012.09195 R2 100 000.00 Provided 2015/2016

12012.09195 R2 100 000.00 Provided 2016/2017

12012.09195 R2 100 000.00 Provided 2017/2018


1.9.5 Integrated Freight and Logistics Strategic Framework and Action Plan for eThekwini (26/2/2):(Page 93 : Economic Development and Planning Committee - Agenda 2015-09-03)


1.9.5.1 That Council adopts the Integrated Freight and Logistics Strategic Framework and Action Plan as a key intervention to support economic growth in the City.

1.9.5.2 That the following short term interventions contained in Table 2 of the report of the City Manager dated 2015-06-15, be programmed for further detailed assessment, funding and implementation:-

● Road Infrastructure● Truck Stops and Staging Areas● Intermodal Facilities● Weigh Bridges and Weigh-in-Motions● Truck Route Hierarchy● Freight Management System● Incident Management● Freight Land Use● Port interface Land Use

1.9.5.3 That the Head : eThekwini Transport Authority be mandated to co-ordinate the implementation of the Integrated Freight And Logistics Strategic Framework and Action Plan for eThekwini, noting that various agencies and spheres of government are responsible for significant elements of infrastructure, operations and policy amendments.


1.9.5.4 That the Head : eThekwini Transport Authority be authorised to liaise with the Deputy City Manager: Finance to develop a comprehensive funding strategy to facilitate the implementation of the Integrated Freight and Logistics Strategic Framework and Action Plan and identity savings in future years to fund this work stream.ADOPTED.

1.9.6 Concept for Establishing Driver Development Parks in the City (26/1/1/4):(Page 103 : Economic Development and Planning Committee - Agenda 2015-09-03)


1.9.6.1 That Council approves the concept of Driver Development Parks for further detailed development, as part of the City’s Road Safety Strategy, it being noted that the detailed work on the concept, to include development of a financial model and business case, and consultation with relevant stakeholders and potential partners.

1.9.6.2 That subject to the approval of .1 above:-

1.9.6.2.1 The eThekwini Transport Authority enlists the City’s Legal Services Unit to draft appropriate by-laws to support the implementation of Driver Development Parks in the City, as well as general regulation of operations of driving schools in the City.

1.9.6.2.2 The eThekwini Transport Authority enlists the Head : Real Estate to develop rental agreements for use of facilities in the Driver Development Parks, by driving schools and other interested parties.

1.9.6.2.3 The eThekwini Transport Authority develops a policy for the accreditation of driving schools that will assist in regulating industry growth, as well as managing their admission to operate in the Driver Develop Parks.

1.9.6.2.4 The eThekwini Transport Authority commences with engagements with driving schools in the City to present the concept, and to develop a database of existing driving schools to inform planning activities.

1.9.6.2.5 The eThekwini Transport Authority and Real Estate work together to secure the two sites identified for the piloting of the concept.ADOPTED.

1.10 REPORT OF THE HUMAN SETTLEMENTS AND INFRASTRUCTURE COMMITTEE: MEETING HELD 2015-09-01(Page R6)

1.10.1 WS 2015/100 : Contract No. WS 6666 : Kingsway 2 Waste Water Pump Station - Re-Routing of Rising Main : Wards 97 and 98 (23/2/1/3/3/1):(Page 12 : Human Settlements and Infrastructure Committee - Agenda 2015-09-01)


1.10.1.1 That authority be granted for the construction of a 45m long, 400 mm Ø steel sewer pipe and associated tie-ins, at an estimated cost of R705 000.00 (Seven Hundred and Five Thousand Rand) (excl. VAT).


1.10.1.2 That, subject to the adoption of .1 above, the Deputy City Manager : Treasury be authorised to include in his adjustments budget report the transfer of R705 000.00 (Seven Hundred and Five Thousand Rand) from project No. Y7048 – SWWTW Digestion On-Line.

Cost Centre: 65320; R705 000.00; (to be met by SWWTW Digestion On-Line via an adjustment budget in 2015/2016)Project No: Y2237; FC 64/C34ADOPTED.

1.10.2 Compensation for Owners of Properties and Building Structures Affected by the Construction of Bus Route 3.1 Phase 2 - Congo to D403 : (Ward 57) Tambo Plaza (25/4/6/1 & 26/3/2/3):(Page 22 : Human Settlements and Infrastructure Committee - Agenda 2015-09-01)


1.10.2.1 That authority be granted to the Head: Human Settlements to relocate the three RDP house owners situated within the Tambo Plaza RDP Housing Project footprint that are affected by the construction of Bus Route 3.1 Phase 2.

1.10.2.2 That, subject to the adoption of .1 above, authority be granted to the Head : Human Settlements and the Head : Engineering to demolish the 3 RDP houses and other structures affected by the construction of Bus Route 3.1 Phase 2 after relocation.

1.10.2.3 That in the event of certain dwellings being partially affected by the construction of the Bus Route 3.1 Phase 2, where there would be no need for relocation, the Head: Real Estate be authorised to enter into negotiations with the owners affected and effect payment of compensation by applying this principle: Compensation = Value of partial dwelling to be removed.

1.10.2.4 That in the event that Human Settlements are not in a position to presently relocate certain owners affected by the construction of the Bus Route 3.1 Phase 2, the Head: Real Estate be authorised to enter into negotiations with owners affected and effect payment of compensation by applying this principle : Compensation = Value of dwelling affected.ADOPTED.

1.10.3 Proposed Closure and Private Treaty Sale of Proposed Portion [A] and Portion 202 Both of Erf 39 Durban and Proposed Portion [B] of Erf 40 Durban North (17/2/1/2/3):(Page 32 : Human Settlements and Infrastructure Committee - Agenda 2015-09-01)


1.10.3.1 That the Municipality declares in terms of Section 14 of the Municipal Finance Management Act 56 of 2003 that:-

1.10.3.1.1 The property described as proposed portion [A] and portion 202 both of Erf 39 Durban and proposed portion [B] of Erf 40 Durban North is not required for providing the minimum level of basic Municipal services; and


1.10.3.1.2 The open market value of the property is currently assessed at a value of R329 000.00 (Three Hundred and Twenty Nine Thousand Rand) exclusive of VAT and the economic and community values have been considered.

1.10.3.2 That in terms of Section 40(2)(b)(i) of the Supply Chain Management Policy read together with Regulation 7 of the Municipal Assets Transfer Regulations, Proposed Portion [A] of 39 Durban North, Proposed Portion [B] of Erf 40 Durban North and Portion 202 of Erf 39 Durban North in extent approximately 413m² as depicted on Plan SJ 4689/6A be sold in freehold by private treaty to Caymen Investments 8 (Pty) Ltd. (Registration Number CK:2007/168022/23) at a price of R329 000.00 (Three Hundred and Twenty Nine Thousand Rand) exclusive of VAT, such purchase price reflecting the current market value of the land as assessed by a registered Valuer.

1.10.3.3 That in terms of Section 211 of Ordinance 25 of 1974, the road area depicted on Plan SJ 4689/6A be permanently closed subject to all costs in connection therewith being borne by Caymen Investments 8 (Pty) Ltd, whether the application for deproclamation is successful or not, and in this regard a deposit of R12 000.00 (Twelve Thousand Rand) is to be lodged with the City Treasurer to cover the estimated costs of survey and deproclamation.

1.10.3.4 That the rezoning of Proposed Portion (A) of Erf39 and Proposed Portion [B] of Erf 40 Durban North from Existing Street purposes to Special Shopping purposes shall be undertaken by and at the expense of the Purchaser.

1.10.3.5 That should the deproclamation and /or rezoning not be successful, the sale shall ipso facto lapse and neither party shall have any claim whatsoever against the other on account thereof.

1.10.3.6 That in the event of objections being lodged to the proposed disposal of proposed disposal of Portion [A] of 39 Durban North, Proposed Portion [B] of Erf 40 Durban North and Portion 202 of Erf 39 Durban North in extent approximately 413m² as depicted on Plan No. SJ 4689/6A, the matter be referred for resolution in terms of Section 50 of the Supply Chain Management Policy headed ‘Resolution of Disputes, Objections, Complaints and Queries”.

1.10.3.7 That in the event of objections being lodged to the proposed deproclamation of Proposed Portion [A] of 39 Durban North, Proposed Portion [B] of Erf 40 Durban North and Portion 202 of Erf 39 Durban North in extent approximately 413m² as depicted on Plan No. SJ 4689/6A, when it is statutory advertised, the matter be referred to the MEC for Co-operative Governance and Traditional Affairs for consent.

1.10.3.8 That authority be granted to the Bid Adjudication Committee to consider the report to deviate from the procurement process in order to formally sell Proposed Portion [A] of 39 Durban North, Proposed Portion [B] of Erf 40 Durban North and Portion 202 of Erf 39 Durban North in extent approximately 413m² as depicted on Plan No. SJ 4689/6A in terms of Section 36(1)(a)(v) of the Supply Chain Management Regulations.

1.10.3.9 That in the event of the sale not being finalized within 6 (six) months from the date of Council authority being granted, the Head: Real Estate be authorised to review the purchase price in line with the current market value of the property where there has been a change in the market value.


1.10.3.10 That the Head : Real Estate be authorized to sign all documents necessary to conclude the agreement.ADOPTED.

1.10.4 Proposed Sale of Land :Erf 800 KwaMashu - H : The Mahon Evangelical Church of Southern Africa (17/2/1/2/3):(Page 38 : Human Settlements and Infrastructure Committee - Agenda 2015-09-01)


1.10.4.1 That the Municipality declares in terms of Section 14(2)(a) and (b) of the Municipal Finance Management Act 56 of 2003 that:-

1.10.4.1.1 The property described as Erf 800 KwaMashu - H is not required to provide the minimum level of basic Municipal services; and

1.10.4.1.2 The market value of the land is R340 000.00 (Three Hundred and Forty Thousand Rand) and the social and community values to be received have been considered.

1.10.4.2 That the rezoning of Erf 800 KwaMashu H from Education to Place of Worship shall be undertaken by the Purchaser prior to transfer at his cost within two (2) years of Council Authority.

1.10.4.3 That Erf 800 KwaMashu H be rezoned in terms of the KwaZulu-Natal Planning Development Act.

1.10.4.4 That should the rezoning not be successful, the attached contract shall ipso facto lapse and neither party shall have any claim whatsoever against the other on account thereof.

1.10.4.5 That in terms of Section 40(2)(b)(i) of the Supply Chain Management Policy read together with Regulation 7 of the Municipal Assets Transfer Regulations, Erf 800 KwaMashu H, Registration Division FT, Province of KwaZulu-Natal in extent 1892m² depicted on Plan No. SJ 4586/7 an SG 1111/1997, be sold by private treaty to The Mahon Evangelical Church of Southern Africa at the price of R193 800.00 (One Hundred and Ninety Three Thousand Eight Hundred Rand) which represents fifty percent of the unencumbered value of the land inclusive of VAT, subject to the terms and conditions of agreement No. 7213.

1.10.4.6 That authority be granted to the Bid Adjudication Committee to consider the report to deviate from the procurement process in order to formally sell Erf 800 KwaMashu H to The Mahon Evangelical Church of Southern Africa in terms of Section 36(1)(a)(v) of the Supply Chain Management Regulations.

1.10.4.7 That in the event of objections being lodged to the proposed sale, when it is statutorily advertised, the matter be referred for resolution in terms of Section 50 of the Supply Chain Management Policy headed “Resolution of Disputes, Objections, Complaints and Queries”.


1.10.4.8 That in the event of the sale not being finalized within six (06) months of the date of Council Authority being granted, a report be submitted by the Head: Real Estate to the Bid Adjudication Committee to review the purchase price in line with the current market value of the property where there has been a change in the market value.

1.10.4.9 That subject to the adoption of paragraphs 1-8 above and approval of the Bid Adjudication Committee, the Head: Real Estate be authorized to sign all documents to give effect to the transaction.ADOPTED.

1.10.5 Property Acquisition for Mixed Use Development : Donation of Erven 8165 and 8166 Both of Durban : Department of Public Works in the Province of KwaZulu - Natal (REF: 17/2/1/1/36.NP) (17/2/1/1/1): (Page 52 : Human Settlements and Infrastructure Committee - Agenda 2015-09-01)


1.10.5.1 That the Head: Real Estate be authorised to accept the donation from the Department of Public Works in the Province of KwaZulu-Natal of the properties described as Erven 8165 and 8166 both of Durban, registration Division FU, situated in the eThekwini Municipality area, Province of KwaZulu-Natal, in extent 410m² and 7319m² respectively.

1.10.5.2 That subject to the adoption of .1 above, the Head: Real Estate be authorised to conclude the relevant donation agreement and all necessary documents to effect transfer to eThekwini Municipality.

Vote No.: 11960.07383 (R70 000 provided for transfer costs)ADOPTED.

1.10.6 Proposed Sale of Land :Erf 1367 Ntuzuma - F : The House of the Twelve Apostles (17/2/1/2/3):(Page 60 : Human Settlements and Infrastructure Committee - Agenda 2015-09-01)



1.10.6.1.1 The property described as Erf 1367 Ntuzuma F is not required to provide the minimum level of basic Municipal services; and

1.10.6.1.2 The market value of the land is R421 800.00 (Four Hundred and Twenty One Thousand Eight Hundred Rand Only) and the social and community values to be received have been considered.

1.10.6.2 That in terms of Section 40(2)(b)(i) of the Supply Chain Management Policy read together with Regulation 7 of the Municipal Assets Transfer Regulations, Erf 1367 Ntuzuma F, Registration Division FT, Province of KwaZulu-Natal in extent 3095m² as depicted on Plan No.SJ 4688/9 and SG 1200/1997, be sold in by private treaty to The House of the Twelve Apostles at the price of R210 900.00 (Two Hundred and Ten Thousand Nine Hundred Rand only) which represents fifty percent of the unencumbered value of the land inclusive of VAT, subject to the terms and conditions of agreement No. 7215.


1.10.6.3 That authority be granted to the Bid Adjudication Committee to consider the report to deviate from procurement process in order to formally sell Erf 1367 Ntuzuma F to The House of the Twelve Apostles in terms of Section 36(1)(a)(v) of the Supply Chain Management Regulations.

1.10.6.4 That in the event of objections being lodged to the Proposed sale, when it is statutory advertised, the matter be referred for resolution in terms of Section 50 of the Supply Chain Management Policy headed “Resolution of Disputes, Objections, Complaints and Queries”.


1.10.6.6 That subject to the adoption of paragraphs 1-5 above and approval of the Bid Adjudication Committee, the Head: Real Estate be authorized to sign all documents to give effect to the transaction.With Councillors TM Mthethwa and SA Kaunda advising that they were Members of the Congregation of the Twelve Apostles and therefore declared an interest in respect of the above-mentioned matter, the above recommendations of the Executive Committee were thereafter ADOPTED.

1.10.7 Proposed Sale of Land :Erf 1869 KwaMashu - C : The Old Apostolic Church (17/2/1/2/3):(Page 70 : Human Settlements and Infrastructure Committee - Agenda 2015-09-01)



1.10.7.1.1 The property described as Erf 1869 KwaMashu C is not required for providing the minimum level of basic Municipal services; and

1.10.7.1.2 The market value of the property is R140 000.00 (One Hundred and Forty Thousand Rand Only) and the social and community values to be received have been considered.

1.10.7.2 That in terms of Section 40(2)(b)(i) of the Supply Chain Management Policy read together with Regulation 7 of the Municipal Assets Transfer Regulations, Erf 1869 KwaMashu C, Registration Division FT, Province of KwaZulu-Natal in extent 1419m² as depicted on Plan No.SJ 4551/1 and SG 1106/1997, be sold by private treaty to The Old Apostolic Church at the price of R79 800.00 (Seventy Nine Thousand Eight Hundred Rand only) which represents fifty percent of the unencumbered value of the land inclusive of VAT, subject to the terms and conditions of agreement No. 7216.

1.10.7.3 That authority be granted to the Bid Adjudication Committee to consider the report to deviate from procurement process in order to formally sell Erf 1869 KwaMashu C to The Old Apostolic Church in terms of Section 36(1)(a)(v) of the Supply Chain Management Regulations.


1.10.7.4 That in the event of objections being lodged to the Proposed sale, when it is statutory advertised, the matter be referred for resolution in terms of Section 50 of the Supply Chain Management Policy headed “Resolution of Disputes, Objections, Complaints and Queries”.


1.10.7.6 That subject to the adoption of paragraphs 1-5 above and approval of the Bid Adjudication Committee, the Head: Real Estate be authorized to sign all documents to give effect to the transaction.ADOPTED.

1.10.8 Work in Excess of R500 000 : Electricity Connection to 3 the High Street - Umhlanga - (Ward Number 35) (2449555) (27/2/R):(Page 89 : Human Settlements and Infrastructure Committee - Agenda 2015-09-01)


That authority be granted to the Head: Electricity to incur expenditure estimated at R3 091 000.00 (Three Million and Ninety One Thousand Rand only) through the normal goods and services procurement process in order to provide a supply of electricity to the customer in Ward 35, at 3 The High Street, Umhlanga.

Account Code 80161 : R3 091 000.00Provided in the 2015/2016 Capital EstimatesFC No.: 79/CA1511ADOPTED.

1.10.9 Work in Excess of R500 000 : Electrical Reticulation : Mega Village Informal Settlement : Griffiths Mxenge Highway : Lamontville(Ward 74) : Drawing Number 2666967 (27/2/3/2):(Page 90 : Human Settlements and Infrastructure Committee - Agenda 2015-09-01)


That authority be granted to the Head : Electricity to incur expenditure estimated at R1 450 000.00 (One Million Four Hundred and Fifty Thousand Rand only) through the normal Goods and services procurement process, in order to provide a supply of electricity to the 497 customers at the Mega Village Informal Settlement, Griffiths Mxenge Highway in Ward 74, Umlaziby commissioning four pole transformers and constructing a new underground and overhead reticulation system.

Project Number EFAINFOH : Account Code: 80032 : R1 450 000.00Provided in the 2015/2016 Capital EstimatesFC No.: 79/CA1567The heading and recommendation was AMENDED to indicate that Lamontville, and not Umlazi, fell under Ward 74. The recommendations, as amended was thereafter ADOPTED.


1.10.10 Work in Excess of R500 000 : Electrical Reticulation of Jamaica Informal Settlements : Kenville : (Ward 34) (DL 2693978) (27/2/3/2):(Page 91 : Human Settlements and Infrastructure Committee - Agenda 2015-09-01)


That authority be granted to the Head: Electricity to incur expenditure estimated at R2 204 000.00 (Two Million Two Hundred and Four Thousand Rand only) through the normal Goods and services procurement process in order to provide for new electricity connections to the informal settlement at Jamaica Informal Settlement in Ward 34, Kenville.

Account Code 80032 : R2 204 000.00Provided in the 2015/2016 Capital EstimatesFC No.: 79/CA1572ADOPTED.

1.11 REPORT OF THE GOVERNANCE AND HUMAN RESOURCES COMMITTEE: MEETING HELD ON 2015-09-03

(Page R12)

1.11.1 Request for Allocation of Capital Savings in 2015/2016 (7/1/2/2 & 2/3/3):(Page 48 : Governance and Human Resources Committee - Agenda 2015-09-03)


1.11.1.1 That authority be granted for the Chief Financial Officer to identify capital savings in the amount of R4 207 000.00 (Four Million Two Hundred and Seven Thousand Rand Only) in the 2015/16 financial year to enable the Sizakala Customer Service Centre Unit to complete certain essential projects and to undertake other urgent minor works and this will entail installation of library fittings and provision of holding cells for the SAPS at uMniniThusong Centre; structural changes to safeguard property and life during the movement of cash in the cash office at Sizakala Customer centre, Kingsburgh and new minor works in various offices at SizakalaCentres.

1.11.1.2 That subject to adoption of .1 above, the Head: Sizakala Customer Services be authorised to proceed with the projects as outlined in the report dated 2015-08-19.

1.11.1.3 That the Chief Financial Officer reports back to the Governance and Human Resource Committee at its meeting scheduled for 2015-10-15 as to whether the required funds have been identified.ADOPTED.

1.11.2 Councillors Support Policy (3/2/P):(Page 107 : Governance and Human Resources Committee - Agenda 2015-09-03)


That the Councillors Support Policy developed to align with the gazette issued by the Minister of Co-operative Governance and Traditional Affairs and contained in the report by the Deputy Head : Office of the Speaker dated 2015-05-29, aimed at


stipulating facilities, resources and support which Council considers necessary or appropriate to provide to Councillors in performing their duties as Councillors; specifying Councillor's entitlements to professional development support and related matters; and identifying Councillor's entitlements for reimbursement of reasonable out-of-pocket expense incurred while performing official duties, be approved. ADOPTED.

1.11.3 Organisation and Establishment of the Information Management Unit (4/1/1/2/7):(4 : Governance and Human Resources Committee - Agenda 2015-09-03)


1.11.3.1 That authority be granted for the City Manager to establish the Information Management Unit as per the structure attached as Annexure "C" in the report by the City Manager dated 2015-08-19 and in line with the Institutional Review Framework acceded to by Council on 2012-07-31.

1.11.3.2 That it be noted that the creation of the recommended organisation and establishment of the Information Management Unit will reduce the amount spent on contractors and external consultants by approximately R25 979 520.00 (Twenty Five Million Nine Hundred and Seventy Nine Thousand Five Hundred and Twenty Rand Only) and these savings could be used to support the implementation of the recommended structure which requires an amount of R19 032 310.00 (Nineteen Million and Thirty Two Thousand Three Hundred and Ten Rand Only).ADOPTED.

1.11.4 Integrated Complaints Management Benchmarking Report (2/3/3):(Page 243 : Governance and Human Resources Committee - Agenda 2015-09-03)


1.11.4.1 That authority be granted for the Head : Sizakala Customer Services Centre to implement the Integrated Complaints Management as per the outcome of the benchmarking exercise undertaken with the cities of Ekurhuleni; Tshwane; Johannesburg as well as Presidential hotline, hence the following action plan:-

1.11.4.1.1 The Sizakala Customer Services Unit be appointed for the implementation and monitoring of customer relations and complaints management;

1.11.4.1.2 The SMS system as an alternative means of mass communication;

1.11.4.1.3 A universal customer service and call centres multi-skilling programme be developed in line with the new Integrated Complaints Management System;

1.11.4.1.4 Incorporate the Complaints Management of eThekwini Municipality into a broader Customer Relations Management Relations Strategy;

1.11.4.1.5 Review the existing system and processes, customised and optimised to meet current needs;

1.11.4.1.6 Develop service standards agreements between Council and the Units to ensure compliance;


1.11.4.1.7 Develop a change management strategy to support the implementation of the new Integrated Complaints Management System; and

1.11.4.1.8 Develop Universal Standard Operation Procedures, service standards and guidelines for complaints management to enhance service standards.ADOPTED.

1.11.5 2014/2015 Sundry Grant-In-Aid (7/14/R):(Page 247 : Governance and Human Resources Committee - Agenda 2015-09-03)


That authority be granted for the Head : Community Participation and Action Support to incur expenditure in the amount of R1 790 550.00 (One Million Seven Hundred and Ninety Thousand Five Hundred and Fifty Rand Only) under the 2014/2015 Sundry Grant-In-Aid to provide financial support to the organisations which have met criteria and are reflected in the report by the Head : Community Participation and Action Support dated 2015-06-08.

Vote No.: 32301.06619; FC No.: 06/19ADOPTED.

1.11.6 Request to Implement Vulnerable Groups Programmes and Senior Citizens Activities (19/1/1/2/R):(Page L6 : Governance and Human Resources Committee - Agenda 2015-09-03)


That authority be granted for the Head : Community Participation and Action Support to implement the Vulnerable Groups Programmes to undertake a number of activities, awareness and outreach programme for children, elderly and people with disabilities between August and December 2015 at a total amount of R1 316 980.00 (One Million Three Hundred and Sixteen Thousand Nine Hundred and Eighty Rand only); with the budget for children amounting to R393 500.00 (Three Hundred and Ninety Three Thousand Five Hundred Rand only); people with disability R412 300.00 (Four Hundred and Twelve Thousand Three Hundred Rand only) and Senior Citizens R509 180.00 (Five Hundred and Nine Thousand One Hundred and Eighty Rand only).

Vote Number : Various as reflected in the report by the Head : Community Participation and Action Support dated 2015-08-11.



1.11.7 Public Service Month (2/3/2/1/2):(Page L8 : Governance and Human Resources Committee - Agenda 2015-09-03)

With Democratic Alliance abstaining on the matter,


1.11.7.1 That authority be granted for the Deputy City Manager : Corporate and Human Resources to incur expenditure in the amount of R315 000.00 (Three Hundred and Fifteen Thousand Rand only) to implement activities to celebrate the Public Service Month celebrated annually in September to highlight government services, dedication, commitments and excellence in the delivery of public service and the activities to be implemented include the following:

1.11.7.1.1 Operation MBO in 3 Regions coordinated under SukumaSakheprogramme, with the South Region event to take place on 22 September 2015 at uMbumbulu multi-purpose Centre; West Region on 23 September 2015 at Mntanontengayo Sport Field and North Region on 25 September 2015 at uMzinyathi Sport Ground.

1.11.7.1.2 Batho Pele Competition to promote good customer care and the competition will be in 3 categories, namely, government employees from Level 1-9 and Task Grade 3 to 12; Citizens above 18 years and residing within the eThekwini Municipal area, excluding government employees; and school learners from grade 7 to 12 attending any school situated within the eThekwini Municipal area.

1.11.7.1.3 Unannounced site visits report 2014-2015 share report of unannounced site visit to all departments that were visited in 2014/2015 financial year to do follow ups, implementations and monitoring of recommendations from Senior Management.ADOPTED.

1.12 PERMISSION FOR HIS WORSHIP THE MAYOR OR HIS NOMINEE; NOMINATED COUNCILLORS; AND OFFICIALS TO ATTEND THE 7 TH BRICS FRIENDSHIP CITIES AND LOCAL GOVERNMENT CO-OPERATION FORUM, 23-25 SEPTEMBER 2015, SAINT PETERSBURG, RUSSIA (14/1)(Page 166)


1.12.1 That authority be granted for His Worship the Mayor, Councillor James Nxumalo or his nominee; 2 (two) Councillors and officials to attend the 7th BRICS Friendship Cities and Local Government Co-operation Forum to be held from 23 to 25 September 2015 in St Petersburg, Russia.

1.12.2 That all delegates be considered to be on Municipal Business during the period of the Conference.

1.12.3 That funding for the delegates be covered as per the financial implications in the table below:-


Name Flights Accommodation Visa S & T Vote No

Mayor JS Nxumalo

R50 000.00 R10 000.00 R1 500.00 As per policy 32123.11960

Councillor 1 R15 000.00 R10 000.00 R1 500.00 As per policy

Councillor 2 R15 000.00 R10 000.00 R1 500.00 As per policy

ADOPTED, by majority vote.

2. SECOND REPORT OF THE EXECUTIVE COMMITTEE : MEETING HELD ON TUESDAY, 2015-09-15

2.1 REQUEST TO IMPLEMENT RECOMMENDATION MADE BY CITY INTEGRITY AND INVESTIGATIONS UNIT IN RESPECT OF CONTRACT NO.1H-809- UMLAZI GLEBELANDS COMMUNITY RESIDENTIAL UNIT (7/7/1 & 22/8/2/1)

(Page 1)


2.1.1 That in line with the recommendations made by the City Integrity and Investigation Unit, the retention money to the value of R800 000.00 (Eight Hundred Thousand Rand Only) excluding VAT be released to DKS Holdings (Pty) Ltd for the Housing Accommodation Umlazi Glebelands Community Residential Unit under Contract No.: 1H-809.

2.1.2 That the comprising surety to the value of R1 600 000.00 (One Million Six Hundred Thousand Rand Only) excluding VAT be released to DKS Holdings (Pty) Ltd.ADOPTED, by majority vote.

2.2 REQUEST FOR APPROVAL FOR THE CITY MANAGER, MR S SITHOLE TO TRAVEL ITALY TO ATTEND THE 100 RESILIENT CITIES CITY LEADERSHIP SUMMIT TAKING PLACE FROM 01-04 OCTOBER 2015 (14/1)

(Page 153)


2.2.1 That authority be granted to City Manager, Mr. Sibusiso Sithole to travel to Italy to attend the 100 Resilient Cities C City Leadership Summit hosted and funded by 100 Resilient Cities.

2.2.2 That the City Manager, Mr. Sibusiso Sithole be considered to be on Municipal Business during the period of the meeting to and from Italy.

Vote: 30003.11960; R9427.76; Provided 2015/2016; FC No.: 12/19



Item Cost (Excluding VAT) Vote No

S&T Allowance R9 027.76 1 30003.11960

Travel Insurance R 400.00 2 30003.11960

Approximate Total R9 427.76

1 - Italy € 94 x 7 days = € 658 (Euro amount € 13.72 calculated using an exchange rate of rate accessed on the 20th July 2015) = R9 027.76

2 – Travel insurance is calculated as R50.00 per day (R50 x 8 days) = R400.00ADOPTED.

3. THIRD REPORT OF THE EXECUTIVE COMMITTEE : MEETING HELD ON TUESDAY, 2015-09-29

3.1 REPORT OF THE TOWN PLANNING SUB-COMMITTEE: MEETING HELD ON 2015-09-17

(Page R1)

1.1 Application in Terms of Chapter 2 of the KwaZulu-Natal Planning and Development Act No. 6 of 2008 for Proposed Scheme Amendment of the Outer West Scheme in Terms of the Provisions of Chapter 2, Part 2, Sections 9(2)(B) of the KwaZulu-Natal Planning and Development Act 2008 to Include Office - Medical Land Use as a Consent Use Under Special Residential 1400, Residential 1800 and Residential 3600 Zones (21/7/11):(Page 12 :Town Planning Sub-Committee - Agenda 2015-09-17)


3.1.1.1 That the application in terms of Chapter 2, Section 13(4) of the KwaZulu-Natal Planning and Development Act (Act No. 6 of 2008), the proposed amendment to the Outer West Scheme Section 7: Development Facilitation Tables for Special Residential 1400, Special Residential 1800 and Special Residential 6300 to include Medical under Consent, be APPROVED for the following reasons:-

3.1.1.1.1 The application complies with the provisions of the Planning and Development Act as it relates to the provisions for scheme amendments.

3.1.1.1.2 The amendment still allows Council “special consent” discretion on each application on its individual merit and right to impose conditions should it permit such uses.

3.1.1.1.3 The proposed amendment does conform with the existing uses contemplated within Special Residential Zones via the Special Consent test that have similar if not more onerous impact on amenity e.g. veterinary clinic, crèche etc.

3.1.1.1.4 Line departments have supported the application.


3.1.1.1.5 The proposed development is seen as part of the urban-residential fabric and with effective management can co-exist harmoniously and provide useful social benefit and additional service to residents.ADOPTED.

3.2 REPORT OF THE COMMUNITY AND EMERGENCY SERVICES COMMITTEE: MEETING HELD ON 2015-09-17(Page R2)

3.2.1 Grant-in-Aid Request for the UKZN – Centre for Creative Arts for 2015/16; 2016/2017; and 2017/18 Financial Years (7/14/1):( : Community and Emergency Services Committee - Agenda 2015-09-17)

It was noted at the meeting that the University of KwaZulu-Natal Centre for Creative Arts (UKZN-CCA) had sound financial systems in place and was audited as part of UKZN. The Deputy Head : Libraries and Heritage added that the grant-in-aid was used for programmes that produced shows for cultural, entertainment and educational value and the organisation continued to contribute to the improvement of the quality of life of the diverse communities within KwaZulu-Natal.


3.2.1.1 That Council approves a grant to the University of KwaZulu-Natal – Centre for Creative Arts to the value of R4 000 000.00 (Four Million Rand only) for 2015/16 financial year to be funded by a budget of R1 060 000.00 (One Million Sixty Thousand Rand only) provided and the balance of R2 940 000.00 (Two Million Nine Hundred and Forty Thousand rand only) transferred from the National Choir Festival.

3.2.1.2 That Council further approves a grants-in-aid of, subject to budget availability, R4 000 000.00 (Four Million Rand only) being awarded to the University of KwaZulu-Natal – Centre for Creative Arts for 2016/17 and 2017/18 financial years respectively.

3.2.1.3 That subject to (2) above, the Draft Budgets 2016/2017 to 2017/2018 are adjusted accordingly.

3.2.1.4 That subject to the adoption of .1, .2, and .3 above, the Deputy City Manager: Community and Emergency Services be mandated to engage the University of KwaZulu-Natal - Centre for Creative Arts in consultation with other relevant Council departments where necessary in order to develop a Memorandum of Agreement for the financial years 2015/16; 2016/17 and 2017/18.

3.2.1.5 That subject to the adoption of4 above, the City Manager be given authority to sign the three-year Agreement commencing on 01 July 2015 and expires 30 June 2018, covering all aspects as required in term of Section 67 of the Municipal Financial Management Act (MFMA) 2003.

Vote: 15503.06620.00006 R1 060 000.00 Provided 2015/2016R2 940 000.00 To be met by varmints budget

2015/16FC No.: 33/534ADOPTED.


3.2.2 Child Care Facilities By-law : Amendment of the Penalties Section (1/1/3/1/6):(Page 95 : Community and Emergency Services Committee - Agenda 2015-09-17)

Having work shopped this by-law on 2014-10-09, which was subsequently approved for public participation and approved by Council 2015-06-24, it was discovered during the promulgation and enforcement process that the maximum fine imposed on a person upon conviction was erroneously reflected as “R2 000.00” (Two Thousand Rand). It ought to have been reflected as R40 000.00 (Forty Thousand Rand) as this amount was in keeping with the maximum penalty reflected in many of the proposed by-laws falling under the Rationalisation project. The error, as advised, had to be corrected on the by-law before it was promulgated in order to avoid unnecessary costs when drafting an amendment post promulgation.


3.2.2.1 That the maximum fine reflected in the By-law under subsection 38 (1) relating to penalties be amended from R2 000.00 (Two Thousand Rand) to R40 000.00 (Forty Thousand Rand); and

3.2.2.2 That the amendment be approved and reflected in the By-law accordingly, prior to the promulgation of the By-law in the Provincial Gazette.ADOPTED.

3.2.3 Grant-in-Aid Request for the Durban Music School for 2015/16; 2016/17 and 2017/18 Financial Years (7/14/1):(Page 108 : Community and Emergency Services Committee - Agenda 2015-09-17)

The Committee was requested to approve an amount of R 1 060 000 to the Durban Music School (DMS) on a three–year term renewable grant-in-aid in line with the City’s Grant-in-Aid Policy in order to help facilitate growth in the local skills development and the economy of the local creative industries.

The Parks, Recreation and Culture Unit engaged with DMS for purposes of considering their grant and was advised of the following:-

(i) The company has sound financial systems in place;(ii) The company continued to contribute substantially to the improvement of

the quality of life of the diverse communities within the eThekwini Municipal Areas by providing through the medium of music, cultural entertainment, education and development;

(iii) Enjoyed broad based support across eThekwini;(iv) Implemented successful learnerships, practical training and music

development programmes for the youth from the primary school level upwards; and

(v) Provided full bursaries to children whose parents or guardians were unable to afford the fees.


3.2.3.1 That Council approves a grant to the Durban Music School to the value of R1 060 000.00 (One Million Sixty Thousand Rand only) for the 2015/16 financial year.


3.2.3.2 That Council further approves a grant-in-aid of, subject to budgetary constraints, R1 060 000.00 (One Million Sixty Thousand Rand only) plus CPIX being awarded to the Durban Music School for 2016/17 and 2017/18 financial years respectively.

3.2.3.3 That subject to the adoption of .1 and .2 above, the Deputy City Manager: Community and Emergency Services be mandated to engage the Durban Music School in consultation without relevant Council Departments where necessary in order to develop a Memorandum of Agreement for the financial years 2015/16; 2016/17 and 2017/18.

3.2.3.4 That subject to the adoption of .3 above, the City Manager be given authority to sign the three-year Agreement commencing on 01 July 2015 and expires 30 June 2018, covering all aspects as required in terms of Section 67 of the Municipal Finance Management Act (MFMA).

Vote: 15503.06620.00005; R1 060 000.00; Provided 2015/2016FC No.: 33/539ADOPTED.

3.3 REPORT OF THE FINANCE AND PROCUREMENT COMMITTEE: MEETING HELD ON 2015-09-17

(Page R5)

3.3.1 Outstanding Debt for Transnet, Prasa, Department of Water Affairs and Ingonyama Trust (7/6/3/1):(Page 8 and attached hereto as Annexure A : Finance and Procurement Committee - Agenda 2015-09-17)

The Finance and Procurement Committee considered a report dated 2015-08-24 by the City Manager in the above regard, the purpose of which was to report on outstanding debt of Transnet, PRASA, Department of Water Affairs and Ingonyama Trust.

The challenges and interventions made to collect such outstanding debt from the Parastatalswas noted.

Following discussion and in noting that the Municipality would continue to apply Credit Control Procedures and would endeavour to recover outstanding amounts,


3.3.1.1 That the report of the City Manager dated 2015-08-24, relative to Outstanding Debt for Transnet, PRASA, Department of Water Affairs and Ingonyama Trust be noted.

3.3.1.2 That the Head : Legal and Compliance be authorised to commence the process of IGFR in an endeavour to recover outstanding debt from the Department of Water Affairs (DWAF).Recommendation 3.3.1.1 NOTED and Recommendation 3.3.1.2 ADOPTED.


3.3.2 Nelson Mandela Bay Municipality Contract With Contour Technology (Pty) Ltd (9/1/3):(Page 13 and attached hereto as Annexure B : Finance and Procurement Committee - Agenda 2015-09-17)

Arising from consideration of the Supply Chain Management monthly report on tender awards made by the City for the month of July 2015 and following a query raised by Councillor ZM Mncwango at the Finance and Procurement Committee on 2015-08-20 and the Executive Committee on 2015-08-25 relative to the above, it was agreed that the report detailing the reasons leading to the use of Contour Technology (PTY) LTD for the contract would be provided to the next meeting of the Finance and Procurement Committee.


That the report detailing reasons leading for the utilisation of Nelson Mandela Bay Municipality Contract with Contour Technology (PTY) LTD for the provision of the Master Prepayment System and Associated Services : Supply of Turnkey Prepayment Vending Solutions/Systems, be noted.NOTED.

3.3.3 Report on Investments (7/11/4):(Page 51 and attached hereto as Annexure C :Finance and Procurement Committee - Agenda 2015-09-17)


3.3.3.1 That the report on the investments of the eThekwini Municipality as at 2015-08-31, submitted by the City Manager as per his report dated 2015-09-03 be noted.

3.3.3.2 That the Deputy City Manager : Finance be requested to provide a report to the Finance and Procurement Committee detailing the processes involved in the processing of insurance claims. Recommendation 3.3.3.1 NOTED and Recommendation 3.3.3.2 ADOPTED.

3.3.4 Monthly Report on Awards Made by the City for the Month of August 2015 (9/1/3):(Page 76 and attached hereto as Annexure D :Finance and Procurement Committee - Agenda 2015-09-17)


3.3.4.1 That the monthly report of the City Manager dated 2015-09-09, relative to awards made by the City for the month of August 2015, as presented, be noted.

3.3.4.2 That it be noted that where the information is available for wards and registration numbers, it is included in the report, as information used to compile the report is taken from submissions made by Units.


3.3.4.3 That the City Manager reserves the right to investigate the awards with a view to taking disciplinary, criminal and recovery actions where willful and negligent violation of Supply Chain Management Policies and Municipal Finance Management Act provisions are observed.

3.3.4.4 That the City Manager shall table a report relative to the disciplinary, criminal and recovery actions taken, it being recorded that the City Manager can only respond when the reports are available.Recommendations 3.3.4.1, 3.3.4.2 and 3.3.4.3 NOTED and Recommendation 3.3.4.4 ADOPTED.

3.3.5 DMTN Programme and Bond Issue (7/3/1/1/2):(Page 128 and attached hereto as Annexure E :Finance and Procurement Committee - Agenda 2015-09-17)


3.3.5.1 That the eThekwini Municipality defer the issuance of eThekwini inaugural bond until market conditions are more favourable.

3.3.5.2 That the eThekwini Municipality monitor the financial market to establish the most convenient time to issue the bond.

3.3.5.3 That the eThekwini Municipality invites tenders for the provision of long term finance for capital projects through long term vanilla loans.ADOPTED.

3.3.6 Budget Statement Report for the Month Ending 31 August 2015 (7/1/4):(Page 157 and attached hereto as Annexure F : Finance and Procurement Committee - Agenda 2015-09-17)


That the Budget Statement Report for the month ending 2015-08-31, submitted by the City Manager as per his report dated 2015-09-11 in compliance with Section 71 of the Municipal Finance Management Act (MFMA) and in terms of Government Notice 32141 dated 17 April 2009, relating to the “Local Government: Municipal Finance Management Act, 2003, be noted.NOTED.

3.3.7 Proposed Sale of Land: Erf 1869 KwaMashu-C The Old Apostolic Church (REF 21/8/2/12/C/5)(0 : Finance and Procurement Committee - Agenda 2015-09-17)


3.3.7.1 That the eThekwini Municipality declares in terms of Section 14 (2)(a) and (b) of the Municipal Finance Management Act 56 of 2003:-

3.3.7.1.1 That the property is not required to provide the minimum level of basic Municipal services; and


3.3.7.1.2 That the market value of the land is R140 000.00 (One Hundred and Forty Thousand Rand Only) and the Social and Community values to be received have been considered.

3.3.7.2 That in terms of Section 40(2)(b)(i) of the Supply Chain Management Policy read together with Regulation 7 of the Municipal Assets Transfer Regulations, Erf 1869 KwaMashu-C, Registration Division FT, Province of KwaZulu-Natal in extent 1419m2 as depicted on SJ 4551/1 and SG 1106/1997, be sold by private treaty to the Old Apostolic Church at the price of R79 800.00 (Seventy Nine Thousand Eight Hundred Rand Only) which represents 50% of the unencumbered value of the land inclusive of VAT, subject to the Terms and Conditions of Agreement No.: 7216.

3.3.7.3 That authority be granted to the Bid Adjudication Committee to consider a report to deviate from the procurement process in order to formally sell Erf 1869 KwaMashuC to the Apostolic Church in terms of Section 36(1)(a)(v) of the Supply Chain Management Regulations.

3.3.7.4 That in the event of objections being lodged to the proposed sale when it is statutory advertised, the matter be referred for resolution in terms of Section 50 of the Supply Chain Management Policy headed “Resolution of Disputes, Objections, Complaints and Queries.”

3.3.7.5 That in the event of the sale not being finalised within six (6) months of the date of Council Authority being granted, a report be submitted by the Head: Real Estate to the Bid Adjudication Committee to review the purchase price in line with the current market value of the property where there has been a change in the market value.

3.3.7.6 That subject to the adoption of 1. to 5. above, and approval of the Bid Adjudication Committee, the Head: Real Estate be authorised to sign all documents to give effect to the transaction.

NOTE : APPROVED BY THE HUMAN SETTLEMENTS AND INFRASTRUCTURE COMMITTEE ON 2015-09-01.

The above recommendations of the Executive Committee were dealt with under 1.10.7 above.

3.3.8 Proposed Sale of Land: Erf 1367 Ntuzuma F The House of the Twelve Apostles (REF 49/284-F-1) (17/2/1/2/3):(9 : Finance and Procurement Committee - Agenda 2015-09-17)


3.3.8.1 That the eThekwini Municipality declares in terms of Section 14 (2)(a) and (b) of the Municipal Finance Management Act 56 of 2003:


3.3.8.1.2 That the market value of the land is R421 800.00 (Four Hundred and Twenty One Thousand and Eight Hundred Rand Only) and the Social and Community values to be received have been considered.


3.3.8.2 That in terms of Section 40(2)(b)(i) of the Supply Chain Management Policy read together with Regulation 7 of the Municipal Assets Transfer Regulations, Erf 1367 Ntuzuma F, Registration Division FT, Province of KwaZulu-Natal in extent 3095m2

as depicted on SJ 4688/9 and SG 1200/1997, be sold by private treaty to the House of the Twelve Apostles at the price of R210 900.00 (Two Hundred and Ten Thousand and Nine Hundred Rand Only) which represents 50% of the unencumbered value of the land inclusive of VAT, subject to the Terms and Conditions of Agreement No.: 7215.

3.3.8.3 That authority be granted to the Bid Adjudication Committee to consider a report to deviate from the procurement process in order to formally sell Erf 1367 Ntuzuma F to the House of the Twelve Apostles in terms of Section 36(1)(a)(v) of the Supply Chain Management Regulations.






3.3.9 Proposed Sale of Land: Erf 800 KwaMashu-H The Mahon Evangelical Church of Southern Africa (Ref 21/8/2/12/C/5):(9 : Finance and Procurement Committee - Agenda 2015-09-17)


3.3.9.1 That the eThekwini Municipality declares in terms of Section 14 (2)(a) and (b) of the Municipal Finance Management Act 56 of 2003:


3.3.9.1.2 That the market value of the land is R340 000.00 (Three Hundred and Forty Thousand Rand Only) and the Social and Community values to be received have been considered.

3.3.9.2 That the rezoning of Erf 800 KwaMashu H from Education to Place of Worship shall be undertaken by the Purchaser prior to transfer at his cost within two (2) years of Council Authority.


3.3.9.3 That Erf 800 KwaMashu H be rezoned in terms of the KwaZulu-Natal Planning and Development Act.

3.3.9.4 That should the rezoning not be successful, the contract attached to the report of the City Manager dated 2015-03-17, shall Ipso facto lapse and neither party shall have any claim whatsoever against the other account thereof.

3.3.9.5 That in terms of Section 40(2)(b)(i) of the Supply Chain Management Policy read together with Regulation 7 of the Municipal Assets Transfer Regulations, Erf 800 KwaMashu H, Registration Division FT, Province of KwaZulu-Natal in extent 1892m2 as depicted on SJ 4586/7 and SG 1111/1997, be sold by private treaty to the Mahon Evangelical Church of Southern Africa at the price of R193 800.00 (One Hundred and Ninety Three Thousand and Eight Hundred Rand Only) which represents 50% of the unencumbered value of the land inclusive of VAT, subject to the Terms and Conditions of Agreement No.: 7213.

3.3.9.6 That authority be granted to the Bid Adjudication Committee to consider a report to deviate from the procurement process in order to formally sell Erf 800 KwaMashu H to the Mahon Evangelical Church of Southern Africa in terms of Section 36(1)(a)(v) of the Supply Chain Management Regulations.






3.3.10 Proposed Closure and Private Treaty Sale of Proposed Portion [A] and Portion 202 Both of Erf 39 Durban and Proposed Portion [B] of Erf 40 Durban North (17/2/1/2/3):(Page 323 : Finance and Procurement Committee - Agenda 2015-09-17)


3.3.10.1 That the eThekwini Municipality declares in terms of Section 14 of the Municipal Finance Management Act 56 of 2003:

3.3.10.1.1 That the said property is not required to provide the minimum level of basic Municipal services; and


3.3.10.1.2 That the open market value of the property is currently assessed at a value of R329 000.00 (Three Hundred and Twenty Nine Thousand Rand Only) exclusive of Value Added Tax and the Economic and Community values have been considered.

3.3.10.2 That in terms of Section 40(2)(b)(i) of the Supply Chain Management Policy read together with Regulation 7 of the Municipal Assets Transfer Regulations, Proposed Portion [A] of 39 Durban North, Proposed Portion [B] of Erf 40 Durban North and Portion 202 of Erf 39 Durban North in extent approximately 413m2 as depicted on Plan No. SJ 4689/6A be sold in freehold by private treaty to Caymen Investments 8 (Pty) Ltd. (Registration Number: CK: 2007/168022/23 at a price of R329 000.00 (Three Hundred and Twenty Nine Thousand Rand Only) exclusive of VAT, such purchase price reflecting the current market value of the land as assessed by a registered Valuer.

3.3.10.3 That in terms of Section 211 of Ordinance 25 of 1974 the road area depicted of Plan SJ 4689/6A be permanently closed subject to all costs in connection therewith being borne by Caymen Investments 8 (Pty) Ltd whether the application for deproclamation is successful or not, and in this regard a deposit of R12 000.00 (Twelve Thousand Rand Only) is to be lodged with the City Treasurer to cover the estimated costs of survey and deproclamation.

3.3.10.4 That the rezoning of Proposed Portion [A] of Erf 39 and Proposed Portion [B] of Erf 40 Durban North from Existing Street purposes to Special Shopping purposes shall be undertaken by and at the expense of the Purchaser.

3.10.5 That should the deproclamation and or rezoning not be successful, the sale shall Ipso facto lapse and neither party shall have any claim whatsoever against the other on account thereof.

3.3.10.6 That in the event of objections being lodged to the proposed disposal of Proposed Portion [A] of 39 Durban North, Proposed Portion [B] of Erf 40 Durban North and Portion 202 of Erf 39 Durban North in extent approximately 413m2 as depicted on Plan No. SJ 4689/6A, the matter be referred for resolution in terms of Section 50 of the Supply Chain Management Policy headed “Resolution of Disputes, Objections, Complaints and Queries.”

3.3.10.7 That in the event of objections being lodged to the proposed deproclamation of Proposed Portion [A] of 39 Durban North, Proposed Portion [B] Of Erf 40 Durban North and Portion 202 of Erf 39 Durban North in extent of approximately 413m2 as depicted on Plan No. SJ 4689/6A, when it is statutory advertised the matter be referred to the MEC, Co-Operative Governance and Traditional Affairs for consent.

3.3.10.8 That authority be granted to the Bid Adjudication Committee to consider a report to deviate from the procurement process in order to formally sell Proposed Portion [A] of 39 Durban North, Proposed Portion [B] Of Erf 40 Durban North and Portion 202 of Erf 39 Durban North in extent approximately 413m2 as depicted on Plan No. SJ 4689/6A in terms of Section 36(1)(a)(v) of the Supply Chain Management Regulations.



3.3.10.10 That subject to the adoption of .1 to .9. above, and approval of the Bid Adjudication Committee, the Head: Real Estate be authorised to sign all documents necessary to conclude the agreement.



3.3.11 Request to Borrow R1.0 Billion for Capital Projects:(Page L9 and attached hereto as Annexure G : Finance and Procurement Committee - Agenda 2015-09-17)


That approval be granted to issue a Request for Proposal (RFP) inviting tenders for the provision of the long term debt finance in the amount of R1.0 billion to finance the eThekwini Municipality's Capital Budget for the 2015/2016 financial year, as provided in the approved budget.ADOPTED, by majority vote.

3.4 REQUEST FOR APPROVAL FOR THE MAYOR AND THE HEAD: ETHEKWINI MUNICIPAL ACADEMY TO ATTEND THE 12 TH CIFAL BOARD OF DIRECTORS ANNUAL MEETING IN ANNEMASSE, GREATER GENEVA, SWITZERLAND FROM 28 – 30 OCTOBER 2015 (14/1)

(Page 9)


3.4.1 That authority be granted for His Worship the Mayor, Councillor James Nxumalo, or his nominee; to attend the International Forum “Public – Private Partnerships for Sustainable Development” and 12th CIFAL Board of Directors Annual meeting from 28 to 30 October 2015 in Annemassse, Greater Geneva, Switzerland to achieve the following:-

(i) Provide international visibility to the City’s interest and concerns.(ii) Promote reflection and discussion with regards to the latest developments

on EMA/CIFAL Centre.(iii) Share insights and experiences in terms of trends in the evolution of the

City.(iv) Find innovative and groundbreaking solutions for the CIFAL programme

challenges.(v) Mobilize new financial resources, donor funding and investments available

for CIFAL programme.(vi) Promote cooperation and collaboration between the eThekwini Municipality

CIFAL and UNITAR, as well as other CIFAL Centres and stakeholders.


3.4.2 That authority be granted for the Head: eThekwini Municipal Academy as the Director of the Durban CIFAL Centre to attend the International Forum “Public – Private Partnerships for Sustainable Development” and 12th CIFAL Board of Directors Annual meeting from 28 to 30 October 2015 in Annemassse, Greater Geneva, Switzerland.


The airfares are estimated at R10 000.00 per person a return fight, the total amount is R20 000.00. Accommodation costs for His Worship the Mayor will be covered by the Municipality. Accommodation and ground transportation for Dr Ngubane will be covered by UNITAR

Funding for travelling for His Worship the Mayor is available from Vote No.: 32111.11960Funding for travelling for Dr Ngubane is available from Vote No.: 33210.10382ADOPTED.

3.5 FINAL DRAFT 2016/17 IDP PROCESS PLAN (2/1/6/1)

(Page 12)

During consideration of the Integrated Development Process Plan it was recommend that the 2016/17 budget discussion and any other key approvals required should be brought forward for finalization before the end f the Council’s term of office.


That Council adopts the Final Draft 2016/17 Integrated Development Process Plan attached to the report by the City Manager dated 2015-09-18 incorporating comments from various stakeholders and alignment of Vulamehlo Municipality process planning with that of eThekwini Municipality.ADOPTED.

3.6 MONTHLY SALGA REPORT (14/2/1/1/1)

(Page 75)


3.6.1 That Council notes the report from South African Local Government Association (SALGA) as at 16 September 2015, which serves to maintain regular contact with its members and with the September report highlighted the following:-

(i) That SALGA KZN Membership Levies is now overdue and member Municipalities still owing SALGA have been issued with letters to settle outstanding amount.

(ii) That the Provincial Members Assemble is scheduled to take place from 29 to 30 October 2015 at Bonamanzi Game Reserve, Hluhluwe, Big 5 False Bay Municipality and every member Municipality is permitted to submit 5 (five) delegates, one of whom should be its voting delegate.


(iii) That the dates of workshops and training as well as SALGA governance structures be noted as contained under item 4 of the report and that member Municipalities consider and confirm their presentation.

(iv) That SALGA congratulates eThekwini Municipality for winning a bid to host the 2022 Commonwealth Games and calls upon all its members to pass a Council resolution to support the hosting of the Games and also take the opportunity to showcase tourism potential within their respective Municipalities.

(v) That the attention of Municipalities is drawn to the Municipal Demarcation Board Circular 17/2015 dated 10 September 2015 comprising final decision in respect of delimitation of Wards in terms of Schedule 1 of the Municipal Structure Act.

NOTED.

3.7 PROVISION OF FINANCIAL AND MUNICIPAL SUPPORT TO INDEPENDENT ELECTORAL COMMISSION: DURBAN METRO OFFICE (IEC)(3/1/1/R & 7/4/1)

(Page 87)


3.7.1 That Council approves the provision of financial, staff and Municipal facilities support to the Independent Electoral Commission (IEC) for the 2016 Local Government election at an estimated expenditure of R2 million subject to funds being made available via the Adjustment Budget process and with support being categorized as follows:-

3.7.1.1 Staff support to the IEC Durban Metro office for special functions and they will receive overtime.

3.7.1.2 Logistical and administrative support to the IEC Durban Metro office at an agreed cost to both the Municipality and the IEC.

3.7.1.3 Venue costs for Results Centre estimated at R1 200 000.00 (One Million Two Hundred Thousand Rand).

3.7.2 That Council approved the allocation of the budget of R2 Million to the Office of the Deputy City Manager: Governance and International Relations and accordingly authorizes the Deputy City Manager to incur expenditure linked to this budget.

3.7.3 That Council approved that Municipal infrastructure be used as venues for election activities such as voting stations and any lease/tariffs charges regarding the same, be waived.

3.7.4 That Council approved staff support to the IEC Durban Metro office for election related functions and staff members will be allowed time off in lieu of time worked.

3.7.5 That Council authorises the City Manager to conclude and sign the agreement with IEC on the support to be given by the eThekwini Municipality in this regard.


3.7.6 That Council notes that the Deputy City Manager: Governance and International Relations will provide updates on the election Calendar once it is approved and proclaimed.Financial implications:

Staffing Support (Overtime and related expenses) R 175 000.00

Logistical Support (Vehicles, generators and supplies) R 550 000.00

Logistical Support (Printing and adhoc expenses) R 75 000.00

Results Centre Venue Hire costs R1 200 000.00

TOTAL BUDGET R2 000 000.00

The total amount of R2 Million required has not been budget in the 2015/2016 financial year. Savings will be identified during the year and an Adjustment Budget will be processes to meet the proposed estimated expenditure to provide support to the IEC.ADOPTED.

3.8 REQUEST FOR AUTHORITY TO UTILISE SECTION 116 (3) OF THE MUNICIPAL FINANCE MANAGEMENT ACT TO EXTEND REFUSE COLLECTION AND STREET CLEANING CONTRACTS NO. WS, 6069, WS. 6070, WS.6071 (24/2/6) (Page 90)


3.8.1 That the request to extend Contracts WS.6069, WS.6070 and WS.6071 for refuse collection and street cleaning in Ntuzuma and Wesrich, KwaMashu Unit J, H, K, N, P and Siyanda; and KwaMashu Unit E, F, L, M and Quarry Heights for a period of 6 (six) months commencing 2015-10-01 to 2016-03-31 or on a month to month basis until the refuse collection and street cleaning tender is finalized.

3.8.2 That the Council notes that the reasons for extension is because the refuse collection and street cleaning tender process is underway and the process might take up to 6 (six) months to finalize.

3.8.3 That Council notes that the reasons for extension is because the tender process is underway which normally takes up to 6 (six) months to finalise.

3.8.4 That subject to the adoption of .1 above, public notices be advertised in the relevant print media requesting comments and/or objections to the proposed amendments of Contract Nos. WS.6069, WS.6070 and WS.6071 in line with the requirements of Section 116 (3) of the Municipal Finance Management Act (MFMA).

Contract Number

Original Contract Sum

Contingencies and Escalation

Original Contract Period

Funds Approved via SW2015/004

Funds Required via SW2015/012

Revised Contract Amount

WS.6069 R7 318 746.00 R1 206 612.00 2012-10-01 to 2015-09-30

R758 838.00 R1 912 471.00 R11 196 667.00

WS.6070 R8 020 320.00 R1 327 626.00 2012-10-01 to 2015-09-30

R3 167 913.00 R3 446 321.00 R15 962 180.00

WS.6071 R6 561 048.00 R1 085 223.00 2012-10-01 to 2015-09-30

R2 629 019.00 R2 196 669.00 R12 471 959.00


Cost Centre : 79277 & 79278.04883 FC No.: 66/00Amount R7 555 4611 excl VAT (Provided 2015/2016)ADOPTED.

3.9 NOMINATIONS TO FILL VACANT BOARD POSITIONS AT INTERNATIONAL CONVENTION CENTRE (ICC) AND DURBAN MARINE THEME PARK (4/3/2)(Page 92)

Vacancies exist in the Board of Inkosi Albert Luthuli International Convention Centre (ICC) and that of the Durban Marine Theme Park (DMTP). The eThekwini Municipality as the majority shareholder is entitled to appoint 4 (four) people in the aforementioned Entities. Accordingly, the City advertised the positions to source incumbents with requisite skills to provide for a balanced skills set in these Boards. Upon finalizing the recruitment process four (4) incumbents are recommended for the ICC and two (2) for DMTP. Meanwhile, the term of office of the three (3) other ICC Board members have expired and it is proposed to extend the term of office. The ICC Board should comprise seven (7) Board Members and with DMTP to comprise nine (9) members.


3.9.1 That the appointment of Messrs Michael Jackson, Zwile Zulu, Nhlanhla Ngidi and MsNalediMakelo to serve of the Board of the Inkosi Albert Luthuli International Convention Centre ICC, for the period of 3 (three) years commencing from 2015-10-01, be approved.

3.9.2 That the term of office of the ICC Board Members MsMatoMadlala; Mr. Themba Ngcobo and Mr. Ashok Sewnarain be extended until 30 June 2016.

3.9.3 That the appointment of MsGabisileGumbi-Masilela and Ms Patricia Lebenya to serve on the Board of the Durban Marine Theme Park for the period of 3 (three) years commencing from 2015-10-01, be approved.

3.9.4 That the names of MessrsSadha Naidoo and Zakhele Gumede be retained on the database of Board Members to revert back to them whenever there is a vacancy in future.ADOPTED.

3.10 REPORT OF THE AIDS COMMITTEE: MEETING HELD ON 2015 - 09-17 (Page 96)

3.10.1 DRAFT AIDS COUNCIL CONSTITUTION (30/1/10/5)

The AIDS Committee is currently in the process of discussing the Constitution submitted for its approval. In view of potential discrepancies between the draft Constitution and the existing Terms of Reference governing the functioning of the AIDS Committee, as approved by Council, Legal and Compliance Services was engaged to give legal opinion on the status of the Constitution as well as other issues identified not to be in alignment with the requirements of the Terms of Reference.


The legal opinion is now available but this will first be dealt with at the level of His Worship the Mayor prior to submitting same for discussion by the AIDS Committee. It will be recalled that seeking legal opinion was also informed by the decision adopted by Council, therefore, final outcome in this regard will be reported to the Executive Committee and thereafter to Council.

On this basis,


That the Council notes that as part of implementing the Council decision of 2015-07-31, the Legal and Compliance Services has submitted legal opinion on the scope of the functioning of the AIDS Committee and this will first be dealt with at the level of His Worship the Mayor prior to submitting the opinion to the AIDS Committee and the final outcome thereof to be reported to the Executive Committee and Council.NOTED.

3.10.2 ACCELERATED PLANS FOR HIV/AIDS AND RELATED DISEASES AS AT JUNE 2015 (30/1/10/4)

Attached herein is a comprehensive report on the City's accelerated plans for HIV/AIDS and related diseases. The Aids Committee noted progress report for the period from April to June 2015, in particular the following issues which have been identified to require collaborative interventions:-

3.10.2.1 HIV and AIDS Counselling and Testing:

In recognizing the reduction in the number of people availing themselves for the HIV/AIDS counselling and testing various outreach campaigns have been rolled out, including HlolaManjeZivikele Campaign targeting taxi ranks and informal businesses. This also included screening for TB and Non-Communicable Diseases. The campaigns are ongoing and joint efforts are required to encourage local community to participate thereby knowing their health status.

3.10.2.2 Male Condom Distribution:

The City has been unable to reach its quarterly target of 11 826 093 for male condom distribution, but the actual achievement during the quarter under review is 8 464 285. It is intended to increase distribution sites to include taverns; taxi ranks; universities; hostels; malls; stadia; and packaging condoms for every client receiving treatment.

3.10.2.3 Medical Male Circumcision:

It was reported that the City is still struggling to achieve set target for adults males circumcision. On the contrary, the service is being utilised by teenagers between the age of 12 to 14 years which fall outside the City's target of 15 years and order. As such, out of the target of 56 706 males to be circumcised the City has only achieved 9 795 male circumcision. Vigorous campaigns are being rolled out to attract right audience from local community.


It was reported that the majority of males do attend health sessions are not practically engaging into circumcision. Collective efforts are therefore recommended to encourage adult males to utilise the service. It was confirmed that vigorous campaigns will continue in a bid to reach set target for medical male circumcision.

3.10.2.4 Antiretroviral Therapy:

The deaths registered as a result of defaults were noted with concern. It is intended to implement electronic patient management system to facilitate early detection of defaulters.

3.10.2.5 Antenatal Care; Maternal Deaths; and Infants Deaths:

Early booking for antenatal, preferably at 20 weeks, is encouraged as part of giving early diagnosis on pregnant women thus preventing maternal and infants deaths. It was submitted that a need exists to educate family members and relatives on feeding practices, particularly, for HIV infected mothers so as to not to exacerbate infants deaths due to default in breastfeeding approach.

At this stage, it was acknowledged that HIV is not a health care issue but a community issue. That this therefore warrants a preventative strategy at an early age to change behaviour patterns.

3.10.2.6 Sexual Assaults Cases:

It was noted with concern that sexual assaults were prevalent to children under 12 years as well as rape incidents. It was then acknowledged that sexual assaults is the issue of human behaviour and that research is required to identify behaviour patterns and prevalence. The findings thereof are to assist in implementing a targeted approach when dealing with issues of sexual assaults. Meanwhile vigorous campaigns are to be rolled out in partnership with Non-Government Organisations and the South African Police in an attempt to curb these incidents. It was noted with appreciation that the Honourable MEC, Dr Sibongiseni Dlomo is active in billboards spreading the message of dual protection.


That the Executive Committee notes the implementation of accelerated plans to manage HIV/AIDS and related diseases within the eThekwini Municipal area, it being recorded that vigorous campaigns are being rolled out to improve the results where the City is lagging behind thus not meeting set targets.NOTED.

3.10.3 PROVINCIAL AIDS COUNCIL MATTERS (30/1/10/5)

3.10.3.1 Wards AIDS Council:

The Deputy Head: Health has been requested to facilitate the submission of progress reports on Wards Council. It was reported that eThekwini results in this regard were disappointing since the Wards Councils are practically non-functional according to the report at the Provincial Aids Council level. The statistics on Ward Councils is required for the November Provincial Aids Council meeting and the City should be advised in the event Ward Councils are dysfunctional to make necessary interventions.


3.10.3.2 Escalating HIV/AIDS Status

The Provincial Aids Council is concerned regarding the increasing number of new HIV/AIDS infections. The City needs to implement mechanisms in an attempt to ensure reduction in the number of new infections so as not be seen to be fighting a losing battle on issues of HIV/AIDS

3.10.3.3 Condom Distribution

The Provincial Aids Council is noting with concern that the City is seating at 72% achievement on condom distribution and this situation is not improving. It was then hoped that the new distribution sites as reported in terms of progress report attached herein will bring about changes in this regard.


That the Deputy Head: Health facilitates the effective co-ordination of the City's response to the HIV/AIDS matters for reporting to the Provincial Aids Council, including co-ordination of Wards Aids Council reports; strategies to contain escalation of new HIV/AIDS infection; and achieving set target for condom distribution.ADOPTED.

3.10.4 WORLD AIDS DAY PREPARATION (12/9/4)

With the City of eThekwini due to host the 2016 Aids Conference, the National Government has planned to celebrate the World's Aids Day on 01 December at Ugu District. It was noted that the City has also planned to celebrate the day in the South of Durban in line with the rotation of areas to host celebrations. The Health Unit was requested to mobilise for the celebration by the City to attract approximately 2 000 people to ensure maximum impact in this regard.

It was then agreed to await the Province to announce its date for the celebration of the World's Aid for the City to plan a build up celebration to the overall National celebration.

The Deputy Head: Health has been tasked to work with Councillor Mhlongo-Ntaka to co-ordinate the dates for the celebration of the Worlds Aids Day by the City and the other two spheres of Government for political leadership to be mobilized accordingly.


That the Deputy Head: Health facilitates the co-ordination of the City of eThekwini celebration of the World's Aids Day, taking into account the celebration planned at the Provincial level and the National Government level celebration already scheduled for 01 December 2015 at Ugu District, to provide synergy in the celebratory programmes by the three spheres of government.ADOPTED.


3.11 APPLICATION FOR PROVISION OF SUPPORT TO COUNCILLOR MHLANZI IN TERMS OF FACILITIES FOR COUNCILLORS WITH SPECIAL NEEDS POLICY.

The inconvenience experienced by Councillor Mhlanzi was noted with concern therefore, provision of support was unanimously supported to create conducive environment for him to pursue Council duties. It was clarified that the Policy was open to any Councillor with special needs but that a formal application needs to be submitted for consideration by the Executive Committee in the first instance.

Given the circumstances,


3.11.1 That Council approves the provision of support to Councillor Mhlanzi in line with the requirements of Facilities for Councillors with special needs Policy to enable him to perform hi mandated Municipal Council duties.

3.11.2 That subject to the adoption of .1 above, authority be granted for the City Manager to enter into contract of employment with an Assistant to be appointed to give support referred to in .1 above at an estimated remuneration rate of R100 000.00 (One Hundred Thousand Rand) per annum based on the maximum scale of Task Grade 03 for the City’s General Assistance remuneration scale, subject to the job evaluation results informed by the job description of the appointed Assistant.

3.11.3 That the City Manager accelerates the implementation of the decision in.1 above and oversees the entire process to ensure compliance with relevant Regulations.ADOPTED.

3.12 REVENUE MANAGEMENT SYSTEM

It was acknowledged with great appreciation that the Revenue Management System has finally achieved a critical milestone when reaching 100% data migration subsequent to a lengthy challenge to migrate data. Confirmation was given that the Month of October 2015 will be used for parallel run of the COIN System and the RMS to assess whether the latter is capable to produce same results required of the billing system with no errors. The success of the parallel run will then inform the cut off strategy to finally go live with RMS. The importance of critically analyzing risk factors associated with the project was stressed to minimize customer inconvenience.

It was reported that the retesting and parallel run will necessitate retention of the services of the Project Management and Data Migration teams until 31 December 2015.

This therefore requires additional project authority of R23 million to be funded through savings to be identified in the adjustment budget. It was clarified that there is no additional budget to be provided to cover the RMS expenditure but that unused funds which have been set aside for operational requirements of the past go live date will be utilized to fund additional expenditure. It was therefore considered important to ensure skills transfer for the City to be able to manage the RMS without relying on the expertise of the Consultants.


Given the fact that RMS is the new development for the City, the RMS Team was requested to continuously evaluate risk factors and mitigation strategies and thereafter give update to the Executive Committee in November 2015.

On this basis,


3.12.1 That Council approves additional project authority of R23 Million to extend the service of the Revenue Management System (RMS) vendors.

3.12.2 That authority be granted to utilize the unspent project authority and effect payment to the Project Management and Data Migration Teams and vendors based on savings to be identified and funded in the adjustment budget to a value not exceeding R30 Million, including VAT.

3.12.3 That Council notes that sufficient funds exist in the post go live budget to cover the additional funds required thus resulting in a neutral budgetary impact.

3.12.4 That it be noted that Section 36 of the Supply Chain Management Regulations will be implemented to procure services of the existing RMS specialist, therefore, it is impractical to follow a competitive bidding process.Recommendations 3.12.1 and 3.12.2 ADOPTED and Recommendations 3.12.3 and 3.12.4 NOTED.

4. REPORT OF THE MUNICIPAL PUBLIC ACCOUNTS COMMITTEE

4.1 INTRODUCTION

The high number of awards in terms of Section 36 of the Supply Chain Management Regulations (SCM) has been noted with concern; even though there has been a reduction in the value of such awards. We have observed the apparent use of Section 36 as a means of circumventing proper procurement processes. As a result, Section 36 awards have been examined with a number of such awards being questioned.

Arising from this concern, we requested the Internal Audit Unit to review contracts that were awarded by the City in terms of SCM Regulation 36. The Unit conducted a high-level review and analysis of reports for the period April to June of the 2014/15 financial year. A review of thirty two Regulation 36 reports was undertaken to:-

● Evaluate whether the procurement through Section 36 was reasonable and justified.

● Evaluate whether the correct application of the Subsection of Section 36 was utilised

● Evaluate the amount of potential irregular expenditure in cases where deviations were unjustified.


4.2 LEGISLATIVE PROVISIONS

4.2.1 Regulation 36 (1)(a) of the Municipal Supply Chain Management Regulations states that the supply chain management policy may allow:-

(1) The accounting officer to dispense with the official procurement processes established by the policy and to procure any required goods and services through any convenient process, which may include direct negotiations but only:-

(i) In an emergency;(ii) If such goods or services are produced or available from a single

provider only;(iii) For the acquisition of special works of an art or historical objects

where specifications are difficult to compile;(iv) Acquisition of animals for zoos or (v) Any other exceptional case where it is impractical or impossible to

follow official procurement processes; and

(2) The Accounting Officer must record the reasons for any deviations in terms of subparagraphs (1)(a) and (b) of this policy and report them to the next meeting of the council and include as a note to the annual financial statements.

4.2.2 Municipal Finance Management Act (MFMA) Act 56 of 2003 Section 1: “irregular expenditure”, in relation to a municipality or municipal entity, means— expenditure incurred by a municipality or municipal entity in contravention of, or that is not in accordance with, a requirement of the supply chain management policy of the Municipality or entity or any of the municipality’s by-laws giving effect to such policy and which has not been condoned in terms of such policy or by-law,

4.2.3 MFMA Act 56 of 2003 Section 32. Unauthorised, irregular or fruitless and wasteful expenditure:

A municipality must recover unauthorised, irregular or fruitless and wasteful expenditure from the person liable for that expenditure unless the expenditure:-

(a) in the case of unauthorised expenditure, is-

(i) authorised in an adjustments budget; or(ii) certified by the municipal council, after investigation by a council

committee, as irrecoverable and written off by the council; and

(b) in the case of irregular or fruitless and wasteful expenditure, is, after investigation by a council committee, certified by the council as irrecoverable and written off by the council.

4.2.4 MFMA Circular No 68 Disciplinary charges for irregular expenditure:

If, after having followed a proper investigation, the council concludes that the political office-bearer or official responsible for making, permitting or authorising irregular expenditure did not act in good faith, then the municipality must consider instituting disciplinary action and/or criminal charges against the liable person/s.


If the irregular expenditure falls within the ambit of the above description, then the council, mayor or accounting officer (as may be relevant) must institute disciplinary action as follows:-

(i) Financial misconduct in terms of section 171 of the MFMA: in the case of an official that deliberately or negligently:-

● contravened a provision of the MFMA which resulted in irregular expenditure; or

● made, permitted or authorised an irregular expenditure (due to non-compliance with any of legislation mentioned in the definition of irregular expenditure);

(ii) Breach of the Code of Conduct for Municipal Staff Members: in the case of an official whose actions in making, permitting or authorizing an irregular expenditure constitute a breach of the Code; and

(iii) Breach of the Code of Conduct for Councillors: in the case of a political office-bearer, whose actions in making, permitting or authorizing an irregular expenditure constitute a breach of the Code. This would also include instances where a councillor knowingly voted in favour or agreed with a resolution before council that contravened legislation resulting in irregular expenditure when implemented, or where the political office-bearer improperly interfered in the management or administration of the municipality.

4.2.5 MFMA Circular No. 62: Management of expansion or variation of orders against the original contract:

It is recognised that, in exceptional cases, an accounting officer of a municipality or municipal entity may deem it necessary to expand or vary orders against the original contract.

The expansion or variation of orders against the original contract has, however, led to wide scale abuse of the current SCM system.

In order to mitigate such practices, accounting officers of municipalities and municipal entities are advised that, from the date of this Circular, contracts may be expanded or varied by not more than 20% for construction related goods, services and/or infrastructure projects and 15% for all other goods and/or services of the original value of the contract. Municipal Councils and Board of Directors of municipal entities are required to amend their supply chain management policies accordingly. Furthermore, anything beyond the abovementioned thresholds must be reported to council or the board of directors.

Any expansion or variation in excess of these thresholds must be dealt with in terms of the provisions of section 116(3) of the MFMA which will be regarded as an amendment to the contract. The contents of the above paragraph are not applicable to transversal term contracts, facilitated by the relevant treasuries on behalf of municipalities and municipal entities and, specific term contracts. The latter refers to orders placed as and when commodities are required and at the time of awarding contracts, the required quantities were unknown.


4.2.6 MFMA section 116. Contracts and contract management:

A contract or agreement procured through the supply chain management policy of the municipality or municipal entity may be amended by the parties, but only after—

(a) the reasons for the proposed amendment have been tabled in the council of the municipality or, in the case of a municipal entity, in the council of its parent municipality; and

(b) the local community—

(i) has been given reasonable notice of the intention to amend the contract or agreement; and

(ii) has been invited to submit representations to the municipality or municipal entity

4.3 DEFINITIONS

● Emergency: A situation where immediate action is necessary in order to avoid a dangerous or perilous condition or risky situation or misery or defect provided that the situation was unforeseen

● Single Source Procurement Definition: Single source purchasing refers to purchases from one selected supplier, even though there are other suppliers who provide similar products but for strategic and possibly cost reasons you decide to use only a specific supplier.

● Sole Source Procurement Definition: Sole source procurement refers to those purchases where there is only one supplier who provides the product. Usually these are unique products which can only be sourced through one supplier/manufacturer.

● Justifiable: Instances where the use of SCM section 36 was reasonable and could not have followed the official SCM process.

● Not justifiable: Instances where the SCM process should have been used and Section 36 could have been avoided.

● Expression of interest: A public notification to call on all contractors to tender to provide service.


4.4 SUMMARY OF OBSERVATIONS

4.4.1 Below is a summary of the Section 36 awards for the period that was reviewed.

Categories per SCM RegulationsReporting Period: April - June 2015

Categories per SCM RegulationsSCM Regulation Reference

No. % of Total Value % of Rand

Value

In any other exceptional case where it is impractical or impossible to follow the official procurement processes

36(1)(a)(v) 67 74% R 25,593,933.56 35.10%

If such goods or services are produced or available from a single provider only

36(1)(a)(ii) 15 16% R 31,347,431.41 43.00%

In an emergency 36(1)(a)(i) 8 9% R 15,891,131.51 21.80%

For the acquisition of special works of art or historical objects where specifications are difficult to compile

36(1)(a)(iii) 1 1% R 30,000.00 0%

Acquisition of animals for zoos; or 36(1)(a)(iv) 0 0% R 0.00 0%

Minor deviation from the standard process 36(1)(b) 0 0% R 0.00 0%

Total Number of Section 36 Awards 91 R72,862,496.48

Table 1

In the table above, 67 contracts reported as “impractical or impossible to follow the official procurement processes” included awards made under one contract.

4.4.2 Based on the audit undertaken, below is a summary of the Regulation 36 awards that were found to be justifiable and non-justifiable for the period under review:-

Categories per SCM Regulations

Categories per SCM RegulationsSCM Regulation Reference

No. Justifiable Unjustifiable

In any other exceptional case where it is impractical or impossible to follow the official procurement processes

36(1)(a)(v) 13 3 10

If such goods or services are produced or available from a single provider only 36(1)(a)(ii) 15 13 2

In an emergency 36(1)(a)(i) 4 0 4

Total Number of Section 36 Awards 32 16 16Table 2


4.5 KEY BUSINESS ISSUES

Key business issues are regarded as strategic risks, emerging risks, residual risks or issues emanating from key business developments which impact on the business risk profile of the organisation. The following are key business issues identified during the audit review:

4.5.1 Inadequate procurement planning, implementation and monitoring of procurement plans across units resulted in Section 36 being utilised. The lack of adequate planning did not justify the use of Section 36 on the basis of it being impractical to follow normal SCM processes and regulations; with the expenditure incurred being deemed irregular expenditure.

4.5.2 Based on the analysis of the above selected cases, it was noted that the BAC approved Section 36 reports without detailed scrutiny of procurement plans, timelines and documentation supporting the reports.

4.5.3 Based on the review and interviews conducted with officials, there seemed to be lack of reliance on the procurement processes due to them being slow and lengthy with officials opting to use Section 36 unduly.

4.5.4 Based on observations and interviews conducted with officials, there seemed to be lack of understanding of when and under what circumstances Section 36 could be applied.

4.5.5 There was a high risk that the irregular expenditure identified and disclosed in the annual financial statements may be incomplete and inaccurate as a result of the review.

4.5.6 Units agreed to terms and conditions with prices for a parking lease with Estate Agents without any consultation with Real Estate.

4.5.7 There was heavy reliance on consultants as a large number of consultants had been engaged within Council without any transfer of skills to Municipal staff.

4.6 RECOMMENDATIONS:

Having duly deliberated on this matter


4.6.1 That the City Integrity and Investigations Unit (CIIU) investigates all matters of irregular expenditure identified to determine if there are any grounds for financial misconduct as a result of the excessive use of Section 36.

4.6.2 That disciplinary action be taken against any official found wanting after investigations have been concluded based on the merit of each case.

4.6.3 That the consequence of any use of Section 36 which is not justifiable and resulted in irregular expenditure being incurred must be recovered from the person liable.


4.6.4 That all irregular expenditure identified be adequately quantified and disclosed in the annual financial statements.

4.6.5 That all contracts that have been repeatedly awarded through Section 36 be procured through a competitive bidding process; with procurement plans being developed for these contracts and compliance with Section 33 of the MFMA being ensured.

4.6.6 That the Bid Adjudication Committee thoroughly analyses and reviews Section 36 reports through the Supply Chain Management Unit’s Compliance Department and Internal Control & Business Systems Unit to ensure that Units are providing detailed reasons and motivation to substantiate the use of Section 36; with approval not being granted in instances where the review of reports shows that the submission emanates from poor planning by the Units.

4.6.7 That Management introduces proper control mechanisms for contract management to avoid unnecessary contract extensions where Section 36 is used as a corrective measure for poor planning.

4.6.8 That the Supply Chain Management Unit creates a centralised database for a pool of contractors with different expertise that will be utilised on a rotational basis for unforeseen events (e.g. fire, storm damages, floods. etc.) that the Council has no control of; with Disaster Management Unit performing a risk assessment and developing a register of all disasters that have occurred within the eThekwini region.

4.6.9 That regular training and updates on the Supply Chain Management Policy and National Treasury Circulars be provided to officials.ADOPTED

5. REPORT OF THE ETHICS COMMITTEE : MEETING HELD ON TUESDAY, 2015-09-08

FINDINGS AND RECOMMENDATIONS IN RESPECT OF THE ERECTION OF ILLEGAL STRUCTURE ON COMMON PROPERTY OF BLK 76, 121 FLOSS STREET, BAYVIEW, CHATSWORTH : WARD 69 (3/5/1)

Hearing in respect of Councillor G Govender : Erection of Illegal Structure on common property of Blk 76, 121 Floss Street, Bayview, Chatsworth : Ward 69.

5.1 INTRODUCTION

“The man who possess character excellence does the right thing, and in the right way.”Nicomachean Ethics, Book 2, Aristotle

These words still ring truth today, these words are profound, eloquent and unequivocal expression of good ethical governance and worth of all public representatives character and personality.

The object of the Code of Conduct for Councillors is primarily to uphold and promote exemplary and ethical conduct for Councillors. It further puts the responsibility of ethical behaviour on Councillors in the fulfilment of their duties in order to create good governance.


“One of the things particularly admirable in the public utterances of President Lincol is a certain tone of familiar dignity, which, while it is perhaps the most difficult attainment of mere style, is also no doubtful indication of personal character. There must be something essentially noble in an elective ruler who can descend to the level of confidential ease without forfeiting respect, something very morally in one who can break through the etiquette of his convential rank and trust himself to the reason and intelligence of those who have elected him.” James Russel Lowell.

5.2 BACKGROUND

The Ethics Committee received a report from the Office of the Speaker on a possible non-compliance by Councillor G Govender and resolved to conduct a Hearing in dealing with the non-compliance of the Code of Conduct in respect of the Erection of Illegal Building on Common Property of Blk 76, 121 Floss Street, Bayview, Chatsworth : Ward 69.

5.3 HEARING

The Hearing was held in pursuant to the Code of Conduct of Councillors in Schedule 1 of the Local Government : Municipal Systems Act 32 of 2000.

The Ethics Committee wishes to record that at the outset, it applied the principle of natural justice that espouses the values that:-

(a) There is a formal procedure;(b) There is a just and fair procedure;(c) The presumption of innocent until proven guilty;(d) The principle of audialterampartem rule.

5.4 ALLEGATIONS IN RESPECT OF COUNCILLOR G GOVENDER

5.4.1 Breach One

It is alleged that in April 2014, Councillor G Govender erected an illegal structure or building in a property owned by eThekwini Municipality described as Block 76, 121 Floss Street, Bayview, Chatsworth without prior written consent of the Council, thereby contravening Item 2(b) of Schedule 1 of the Local Government : Municipal Systems Act of 2000.

5.4.2 Breach Two

It is alleged that in April 2014, Councillor G Govender contravened the National Building Regulations and Building Standards Act (Act 103 of 1977), as amended, by erecting an illegal structure or building in a property owned by eThekwini Municipality described as Block 76, 121 Floss Street, Bayview, thereby contravening Item 2(b) of the Local Government : Municipal Systems Act of 2000.


5.4.3 Plea

5.4.3.1 Breach One

5.4.3.1.1 In plea to the allegations that he erected an illegal structure or building in a property owned by eThekwini Municipality described as Block 76, 121 Floss Street, Bayview, Chatsworth without prior written consent of the Council as stated in 4.1 above, Councillor Govender pleaded GUILTY.

5.4.3.2 Breach Two

5.4.3.2.1 In plea to the allegations that he erected an illegal structure or building in a property owned by eThekwini Municipality described as Block 76, 121 Floss Street, Bayview, in terms of Section 4(1) of the National Building Regulations and Building Standards Act (Act 103 of 1977), as amended and contained in 4.2 above, Councillor Govender pleaded GUILTY.

5.4.4 Aggravating Factors

5.4.4.1 The Councillor holds an office that require trust, honesty and accountability.

5.4.4.2 Councillors are expected to be custodians of the Rules and Regulations of Council.5.4.4.3 The allegations contained in the above regard were considered to be serious. In this

regard, it was recommended that the following sanctions be imposed:-

5.4.4.3.1 The Councillor be requested to pay a fine to be determined by the Ethics Committee.

5.4.4.3.2 The Councillor submit a written apology to the Officials of the Housing Department.

5.4.4.3.3 The Councillor submit a written apology to the Executive Committee as he had brought the name of the Organisation into disrepute.

5.4.4.3.4 The Councillor demolish the structure to save the Ratepayers monies as the Legal & Compliance Unit was in the process of obtaining a High Court Demolition Order.

5.4.4.3.5 The Councillor overlooked the Bylaws of the City and being a Councillor, he is aware of such Bylaws.

5.4.4.3.6 Furthermore, with the Councillor having contravened such Bylaws, the question was raised as to what would become of the ordinary citizens of eThekwini.

5.4.5 Mitigating Factors

5.4.5.1 The Councillor admitted that he breached the Code and acknowledged that his actions were unjust. He apologised to both the Ethics Committee and the Speaker for his mistake and indicated that he did not intend to pursue with the building structure in question.

5.4.5.2 He had paid an Admission of Guilt fine of R750,00 in respect of the illegal building.


5.4.5.3 The Councillor acknowledged that he neglected his duties as a Councillor by not setting a good precedent and did not intend for the matter to be perpetuated other than to allow for the Ethics Committee to grant him authority to demolish the structure voluntarily by 30 October 2015. The Councillor also undertook to extend an apology to the Officials of the Housing Department for his supposedly abusive behaviour.

5.4.5.4 In being informed of a High Court Demolishing Order was in the process of being obtained by the Municipality to demolish the said structure, the Councillor requested that this Order be withdrawn to allow him to demolish the structure by 30 October 2015.

5.5 Legislation

5.5.1 Municipal Systems Act 32 of 2000

Item 2(b) of Schedule 1 of the Local Government : Municipal Systems Act 32 of 2000 stipulates that: “A Councillor must at all times act in the best interest of the Municipality and in such a way that the credibility and integrity of the Municipality are not compromised.”

5.5.2 National Building Regulations and Building Standards Act (Act 103 of 1977), as Amended

In terms of Section 4(1) of the above Act, “No person shall without the prior approval in writing of the local authority in question, erect any building in respect of which plans and specifications are to be drawn and submitted in terms of this Act.”

5.6 Factors taken into consideration in deciding an appropriate Sanction

In deciding the appropriate Sanction, the Ethics Committee took into consideration the following factors:-

5.6.1 The Councillor pleaded guilty to both breaches for having contravened Item 2(b) of Schedule 1 of the Local Government : Municipal Systems Act of 2000 and the National Building Regulations and Building Standards Act (Act 103 of 1977), as amended.

5.6.2 That the plea of him being guilty was based on the fact that the Councillor did erect an illegal building structure Block 76, 121 Floss Street, Bayview, Chatsworth (Ward 69).

5.6.3 The Councillor was remorseful in his actions by reducing the structure to a level that he thought was acceptable. However, it was noted that there was a high obligation on him to abide by the Municipality’s Bylaws because he is a Councillor who is part of a Municipal Council which is the custodian of Laws and Regulations.

5.6.4 The Councillor extended an apology to both the Ethics Committee and the Speaker for having contravened the Bylaws of the Municipality by erecting an illegal structure at his premises.

5.6.5 The Councillor was a first time offender and did not have any disciplinary record with the Municipality.


5.7 Sanction

In terms of the Schedule 1, Item 2 (b) of the Local Government : Municipal Systems Act 32 of 2000, should the Councillor breach the provision of the Code, a Municipal Council may impose a fine as determined by the Standing Rules and Orders of the Municipal Council on a Councillor in respect of the following:-

(a) issue a formal warning to a Councillor;(b) reprimand a Councillor;(c) request the MEC for Co-operative Governance and Traditional Affairs

(COGTA) to suspend a Councillor for a period;(d) fine a Councillor; and(e) request the MEC for Co-operative Governance and Traditional Affairs

(COGTA) to remove a Councillor from Office.

5.8 Right to Appeal

Schedule 1, Section 14(3)(a) of the Local Government : Municipal Systems act 32 of 2000 stipulate that:

“(3)(a) Any Councillor who has been warned, reprimanded or fined in terms of paragraph (a), (b) or (d) above, may within 14 days of having been notified of the decision of Council appeal to the MEC for Co-operative Governance and Traditional Affairs (COGTA) in writing, setting out the reasons on which the appeal is based.

(b) A copy of the appeal must be provided to Council.

(d) The MEC for Co-operative Governance and Traditional Affairs (COGTA) may, after having considered the appeal, confirm, set aside or vary the decision of the Council and inform the Councillor and the Council of the outcome of the appeal.”

Councillors Graham and Hoosen recorded their dissatisfaction on recommendation 8.4 in that they are of the view that Councillor Govender should not apologise to Council for bringing the Council into disrepute but his apology should only be noted in the Report.

Accordingly,


5.8.1 That in respect of breach one relative to the erection of an illegal structure in a property owned by eThekwini Municipality described as Block 76, 121 Floss Street, Bayview, Chatsworth (Ward 69), Councillor G Govender is in breach of Schedule 1 Item 2 (b) of the Local Government : Municipal Systems Act 32 of 2000.

5.8.2 That in respect of breach two relative to the illegal structure in a property owned by eThekwini Municipality described as Block 76, 121 Floss Street, Bayview, Chatsworth (Ward 69) in terms of Section 4(1) of the National Building Regulations and Building Standards Act (Act 103 of 1977), as amended, Councillor G Govender is in breach of Schedule 1 Item 2 (b) of the Local Government : Municipal Systems Act 32 of 2000.


5.8.3 That in light of recommendations 8.1 and 8.2 above, a formal written warning be issued to Councillor Ganas Govender to desist from the continuation of the erection of an illegal structure in a property owned by eThekwini Municipality described as Block 76, 121 Floss Street, Bayview, Chatsworth (Ward 69).

5.8.4 That Councillor G Govender apologise to Council for the non-compliance of the Code of Conduct in respect of the erection of an illegal building structure in a property owned by eThekwini Municipality described as Block 76, 121 Floss Street, Bayview, Chatsworth (Ward 69) without authority.

5.8.5 That in view of a submission by Councillor G Govender that he is undertaking religious fast for the months of September and October 2015, Councillor Govender be allowed to demolish the illegal structure erected in a property owned by eThekwini Municipality described as Block 76, 121 Floss Street, Bayview, Chatsworth (Ward 69) by 30 October 2015, it being recorded that subject to there being a non-compliance of the Code to demolish the above structure within the given timeframe alluded to above, authority be granted to the Ethics Committee to re-charge the above Councillor in respect of the above offence.

5.8.6 That the Head : Development & Planning be granted authority to undertake an inspection-in-loco at Block 76, 121 Floss Street, Bayview, Chatsworth (Ward 69) after 30 October 2015 to ascertain the demolition of the said property alluded to in 8.5 above and to report back to the Ethics Committee on its findings for reporting to Council.

5.8.7 That the Ethics Committee Report be approved and a copy thereof, be submitted to the MEC for Co-operative Governance and Traditional Affairs (COGTA) for information.ADOPTED, by majority vote.

6. APPLICATIONS FOR LEAVE (3/4/2)

The following Councillors were granted leave of absence as indicated:-

Councillor S Bhanprakash : 2015-10-15 to 30 (Overseas Trip)Councillor HT Cele : 2015-09-30 to 10-01 (Personal Commitments)Councillor TP Collins : 2015-10-02 to 23 (Personal Commitments)Councillor DG Hoorzuk : 2015-09-30 (Municipal Business)Councillor NB Iyir : Request to leave at 12:00Councillor S Kalicharan : 2015-09-30 (Indisposed)Councillor LP Mdlalose : 2015-09-30 to 10-01 (Personal Commitments)Councillor P Mfeka : 2015-09-28 to 10-12 (Personal Commitments0Councillor Z Mncwango : Request to leave at 11:00Councillor NE Msane : 2015-09-30 to 10 -02 (Indisposed)Councillor NE Mthembu : 2015-09-30 (Indisposed)Councillor TS Mtshali : 2015-09-30 (Personal Commitments)Councillor P Naidoo : 2015-09-30 (Personal Commitments)Councillor NN Ndlela : 2015-09-30 (Indisposed)Councillor MK Ndzimbomvu: 2015-09-30 to 10-01 (Municipal Business)Councillor ZS Ndzoyiya : 2015-09-29 to 30 (Municipal Business)Councillor MS Nkosi : Request to leave at 13:00Councillor BM Ntshangase : 2015-09-29 to 10-02 (Indisposed)


Councillor BD Prinsloo : 2015-10-23 to 30 (Personal Commitments)Councillor NF Shabalala : 2015-09-29 to 10-06 (Municipal Business)Councillor MB Xhakaza : 2015-09-28 to 30 (Personal Commitments)

City Administration: Secretariat30September 2015

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