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KRR(2019-06-27)(SAM)[CHALL-176021] 2019-06-28

COUNCIL DECISION CIRCULAR : MEETING HELD ON 2019-06-27

TO ALL DEPUTY CITY MANAGERS AND HEADS:

Attached please find decisions adopted by the Council at its meeting held on 2019-06-27.

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 - 2019-06-27)

1. FIRST REPORT OF THE EXECUTIVE COMMITTEE: MEETING HELD ON TUESDAY, 2019-06-18

_____________

1. REPORT OF THE HUMAN SETTLEMENTS AND INFRASTRUCTURE COMMITTEE: MEETING HELD ON 2019-06-04

(Page R1)

1.1 Renewal of Lease for Isipingo Customer Services Centre: 1 st Floor, 3 Police Station Road, Isipingo (17/2/2/1/2):(Page 19: Human Settlements and Infrastructure Committee - Agenda 2019-06-04)

During consideration of this matter at Support Committee level, confirmation was given by the relevant official that consequence management would be implemented on the issue of irregular expenditure incurred as a result of servicing the expired lease. The attention was then drawn to the process of constructing a municipal building to serve as a customer service centre in the area to avoid entering into leases of this nature in future.

At the Executive Committee meeting Management was requested to strengthen internal controls to monitor leases and avoid irregular expenditure.

COMMITTEE RECOMMENDS:

1.1.1 That authority be granted to the Head: Real Estate to conclude a lease agreement with Valjee Ramsunder in respect of the property situated at 1st Floor, 3 Police Station Road, Isipingo, in extent approximately 611.8m2, for a period of three (3) years with effect from 2019-06-01 and terminating on 2022-05-30 for its utilisation as the Electricity Customer Services Centre servicing customers in the Southern and surrounding areas within eThekwini Municipality with their electricity applications, meter reading and account queries.

1.1.2 That subject to the approval of .1 above, authority be granted to the Head: Real Estate to sign all documents necessary to conclude the lease.ADOPTED.

1.2 Approval of Gravel to Surfaced Roads Whose Ownership Falls Outside eThekwini Municipality (25/4/8/1): (Page 53: Human Settlements and Infrastructure Committee - Agenda 2019-06-04)

At the Support Committee Members requested that a plan on the roll-out of the programme encompassing all the Regions as well as prioritization based on the low volume roads as well as high volume roads be submitted to the Human Settlements and Infrastructure Committee for consideration.

The Executive Committee looked into the issue of rehabilitating roads falling under Ingonyama Trust, with some Members questioning the rationale behind this given that the Trust was not contributing to the Rates base of the Municipality. Furthermore, that this was apparently setting an undesirable precedent since there were some other roads used by the public and situated in private-owned land.


In response, the attention was drawn to a careful assessment being undertaken to rehabilitate roads falling outside the Municipality, mention being made that the roads in question carried a high volume of traffic and were being used by the public at large travelling by public transport.

Reference having been made as well to the Provincial Roads which ended up being maintained by the Municipality to ensure service delivery to the local communities, it was emphasised that a need existed to hold prior engagements with Ingonyama Trust and with the Province, where required, to discuss their roads maintenance plans and the obligations thereof, including the terms guiding the intervention by the Municipality. That feedback in this regard be submitted to the relevant Committees.

At this stage, the two (02) Executive Committee Members of the Democratic Alliance abstained on the matter and the four (04) Executive Committee Members present supported the matter.


1.2.1 That authority be granted for the upgrading of volume high traffic gravel roads to surfaced roads that fall within the eThekwini Municipality boundaries but are located on Ingonyama Trust Land, it being recorded that the construction of these roads would be for the benefit, welfare and social well-being of the communities living on the land.

1.2.2 That authority be granted for the Head: Engineering to incur expenditure to the amount of R1 710 000.00 (One Million Seven Hundred and Ten Thousand Rand) from the Roads and Stormwater Management Departmental Budget for the 2019/2020, 2020/2021 and 2021/2022 financial years to maintain the surfaced roads located on Ingonyama Trust Land as part of the Municipal Roads Network, it being recorded that the budget is an estimate for the re-gravel of roads, biannual light blading and annual heavy blading of the gravel roads.

1.2.3 That authorisation from the Ingonyama Trust Board be obtained before the implementation of the roads construction commence.ADOPTED, by the majority vote.

1.3 Request for Approval: Expansion of Sihlazimvelo Programme (32/1/4/1):(Page 57: Human Settlements and Infrastructure Committee - Agenda 2019-06-04)

The Committee requested that stringent monitoring measures be put in place with a view to ensuring that the stream cleaning under the Sihlazimvelo Programme is effectively undertaken by the Co-operatives,


1.3.1 That the Sihlanzimvelo Stream Cleaning Programme Expansion be approved as follows:

1.3.1.1 That additional forty (40) Co-operatives be selected and contracted from the existing Supply Chain Management Unit database to maintain 200km of stream on a month to month basis for a period of six (6) months, or until such time the new Supply Chain


Management Unit Co-operative database is approved and active, it being recorded that each Co-operative will maintain 5km of stream and be paid based on performance at a rate of R6 000.00 (Six Thousand Rand) per month and per Kilometer successfully maintained in the following areas:

(i) Mount Moriah(ii) Adams(iii) Clare Estate(iv) Ottawa(v) Waterloo(vi) KwaMakhutha(vii) Cato Manor(viii) Folweni(ix) Illovu(x) Chesterville/Umkhumbaan

FC Number: 48/0529ADOPTED.

2. REPORT OF THE ECONOMIC DEVELOPMENT AND PLANNING COMMITTEE: MEETING HELD ON 2019-06-06

(Page R4)

2.1 Economic Development Incentive Policy 2019-2020 (20/1/P):(Page 5: Economic Development and Planning Committee - Agenda 2019-06-06)

The Economic Development Incentive Policy 2019-2020 categorises and formulates its offer to align to the following objectives:-

● The Municipality’s offering of economic incentives as part of a broader strategy aimed at creating a more conducive environment for investment and growing the economy of the Municipality; and

● Supporting new investments on their potential and future contribution to economic growth and job creation within the Municipal area

At the Support Committee the ANC (12 Members), IFP (2 Members) and EFF (1 Member) supported the recommendations, and the Democratic Alliance (9 Members) abstained on this matter.

At the Executive Committee meeting two (02) Executive Committee Members from the Democratic Alliance abstained.

Therefore,


2.1.1 That the amended Economic Development Incentive Policy 2019-2020, attached as Annexure A to the report of the City Manager dated 2019-05-09, be approved for implementation in the 2019-2020 financial year, it being recorded that this approval translates into an in-principle approval of all applications for incentives on property rates offered to the three development types namely Greenfield Development, Brownfield Development and the General Rebate for Brownfield Development.


2.1.2 That subject to the adoption of .1 above:-

2.1.2.1 Authority be granted to the City Manager to enter into a Memorandum of Agreement with approved applicants pursuant to approval of rebate applications by Council, as contemplated in the Rates Policy

2.1.2.2 That the Head of the Revenue Management Unit undertake the administrative processes in respect of the implementation of the Rates rebate.

2.1.2.3 That the Head: Economic Development and Investment Promotion report back to the Economic Development and Planning Committee on the broader economic impact of the incentive offered.ADOPTED.

2.2 Report on Implementation of Economic Development Incentive Policy 2018-2019 (20/1/P):(Page 11 : Economic Development and Planning Committee - Agenda 2019-06-06)

Since the inception of the incentives offer on 2016-07-01, more than 15 (fifteen) applications had been received and a total of 11 (eleven) applications that qualified were approved in an effort to create jobs and activate various sectors within the City’s economy.

At the Support Committee the ANC (12 Members), IFP (2 Members) and EFF (1 Member) supported the recommendations, and the Democratic Alliance (9 Members) abstained on this matter.

At the Executive Committee meeting two (02) Executive Committee Members from the Democratic Alliance abstained.

Therefore,


2.2.1 That Council notes the conclusion of the process and award of incentives as approved in line with the EDIP 2018/19

2.2.2 That authority be granted to the City Manager to formalise .1 above and enters into Memoranda of Agreement as prepared for each of the approved applications.

2.2.3 That the Head of the Revenue Management Unit undertake the administrative processes in respect of the implementation of the rates rebate.

2.2.4 That the Head: Economic Development and Investment Promotion report back to the Economic Development and Planning Committee on the broader economic impact of the incentive offered.ADOPTED.


2.3 Request to Authorise City’s Strategic Partnership With African Agri Council to Host Market Access Africa Conference and Exhibition on 2019-08-05 & 06 (13/2/1/2/1):(Page 15 : Economic Development and Planning Committee - Agenda 2019-06-06)


2.3.1 That in acknowledging the Agriculture and Food Processing sector as the driver of job creation in the emerging markets and Africa as a continent, authority be granted for the Head: Business Support, Markets and Tourism to incur expenditure to the amount of R1 200 00.00 (One Million Two Hundred Thousand Rand) VAT incl.to host the 2019 Market Access Africa Conference and Exhibition, a strategic business event partnership with the African Agri Council, on 2019-08-05 and 06 at the Inkosi Albert Luthuli Convention Centre.

2.3.2 That the Acting Head: Invest Durban be authorised to incur expenditure to the amount of R800 000.00 (Eight Hundred Thousand Rand) as part of the eThekwini Municipality’s efforts to leverage its share of agribusiness investment through the Market Access Africa business platform.

2.3.3 That authority be granted to the Deputy City Manager (Economic Development and Planning) to negotiate and finalise the appropriate partnership mileage for the agri-business investment leveraging, commensurate to the financial investments with the organisers of the Market Access Africa 2019 in monitoring that the City yields the valuable agribusiness and local economic development benefits.

2.3.4 That authority be granted to the City Manager to contract with the organisers of the Market Access Africa 2019, as outlined in the report by the City Manager dated 2019-02-23, in compliance with the Municipal Finance Management Act 2003.

2.3.5 That subject to the approval of .4 above, and successful implementation of 2019 Market Access Africa Conference that the City Manager be authorised to negotiate for 2020 and 2021 Conference so that Council receives maximum exposure and benefits.

Financial Implications:

The financial implications for the City’s partnership is as follows: -

MAA 2019 – R2 000 000.00 (Two Million Rand)(2019/2020 financial year)(Agribusiness – R1.2 million and Invest Durban - R800 000)

FINANCIAL YEAR

AMOUNT VOTE NUMBER

2019/2020 R1.2 Million (Agribusiness Department) 26542.19615.1212.0000.MRC01.0010

2019/2020 R800 000 (Invest Durban) 91000.22710.30.12120.0000.35000-4.0010

TOTAL R2 Million

FC NO:-Agribusiness Department (2019/2020) – 2020/32/04 Invest Durban (2019/2020) – 2020/32/04ADOPTED.


2.4 Request for Authority to Conduct Stakeholder Consultation: Draft Strategic Renewable Energy Roadmap 2030 (20/1/4/1):(Page 33: Economic Development and Planning Committee - Agenda 2019-06-06)

The Energy Office has been awarded a Technical Assistance Programme by C40 Climate Leadership Group to undertake a strategic roadmap towards developing renewable energy targets thus enabling the Municipality to better serve customers by transitioning towards a low carbon economy without jeopardizing economic development.


2.4.1 That the draft Strategic Roadmap for Renewable Energy which seeks to evaluate the current energy resource portfolio and alternative future portfolios of energy resource options to meet the future electrical needs of the eThekwini Municipality, attached as Annexure A, to the report of the City Manager dated 2019-05-14, be approved.

2.4.2 That subject to the approval of .1 above, the Acting Head: Development Planning, Environmental and Management be authorized to embark on a stakeholder engagement process for the strategic renewable energy roadmap as informed by Section 152(1)(a) of the Constitution of the Republic of South Africa.ADOPTED.

3. REPORT OF THE COMMUNITY SERVICES COMMITTEE: MEETING HELD ON 2019-06-06

(Page R7)

3.1 Approval of Blue Flag Beach Status in eThekwini (25/2/7):(Page 7: Community Services Committee - Agenda 2019-06-06)

The City of eThekwini prides itself for running two (2) Blue Flag Status Beaches namely, Ushaka and Westbrook and with Umgababa and Amanzimtoti still being under pilot for the Blue Flag Project. The Programme strives to promote sustainable development in the Coastal Areas through high water quality standards, safety standards, environmental management standards and environmental education. It works to bring together the Tourism, and Environmental Sector at the Local, Regional and National levels.

It should be noted that the Local authority needs to apply to register and be nominated to be granted a Full blue Flag Status or to be registered as a Pilot Blue Flag beach. In order to apply and be nominated, each beach must comply with the thirty three (33) criteria around this programme. The criteria for Blue Flag Status cover four main areas being Water Quality, Environmental Information and Education programmes, Environmental Management and Safety & Services.

The Blue Flag Status is valid for one (1) year only and needs to be applied for and granted annually at a cost of R25 440.00 (Twenty Five Thousand Four hundred and Forty Rand). For a Pilot Blue Flag programme which costs R 21 200.00 (Twenty One Thousand Two Hundred Rand), the Local Authority has a five (5) year timeframe to uplift its Pilot Status and once approved by the Wildlife & Environment Society of South Africa (WESSA), to achieve a full Blue Flag Status.


Given the benefit of achieving Blue flag status, authority is being sought to make application for six (6) pilot blue flag beaches. One of the programmes currently being undertaken by the Parks department is the Black diamond event which targets schools to emphasise education on environmental issues and the preservation of natural heritage. The Committee will engage on other activities being undertaken by the Department.


3.1.1 That authority be granted to the Head: Parks, Recreation and Culture to make applications to the Wildlife and Environment Society of South Africa (WESSA) for six (6) additional Pilot Blue Flag beaches for the 2019/2020 financial year, namely Vetchies Beach, Anstey’s Beach, North Beach, South Beach, Umhlanga Main Beach and Umdloti Main Beach in the amount of R 21 200.00 (Twenty One Thousand Two Hundred Rand) for each beach.

3.1.2 That given that the Blue Flag Status is valid for a year, authority be granted to the Head: Parks, Recreation and Culture to renew the existing Full Blue Flag Status for Ushaka and Westbrook beaches in the amount of R 25 440.00 ( Twenty Five Thousand Four hundred and Forty Rand) for each beach.

3.1.3 That all the Pilot and Full Blue Flag Beach applications for the upcoming 2019/2020 financial year be applied for on a seasonal basis, that being March/April (Easter); June/July (Midterm breaks) and from November to end January 2020 (Festive season), to provide an opportunity for the City to undertake necessary operational maintenance and renovations to ensure that the City is compliant with the Foundation

for Environmental Education (FEE) stringent requirements of the programme.


ACCOUNT DESCRIPTION

BU. MSCO

A ITEM

FUND COSTING PROJECT REGION/WARD

AMOUNT

Full Blue Flag

Status Beaches

Ushaka 16010 10985.10 0000 36110 W028Ward 26

R 25 440.00

Westbrook 16021 10985.10 0000 36110 W035Ward 58

R 25 440.00

Pilot Blue Flag

Beaches

Umgagaba 16224 10985.10 0000 36110 W097Ward 98

R 21 200.00

Amanzimtoti 16224 10985.10 0000 36110 W097Ward 97

R 21 200.00

Vetchies Beach 16010 10985.10 0000 36110 W028Ward 28

R 21 200.00

Anstey’s Beach 16010 10985.10 0000 36110 W028Ward 66

R 21 200.00


ACCOUNT DESCRIPTION

BU. MSCO

A ITEM

FUND COSTING PROJECT REGION/WARD

AMOUNT

North Beach 16010 10985.10 0000 36110 W028Ward 26

R 21 200.00

South Beach 16010 10985.10 0000 36110 W028Ward 26

R 21 200.00

Umhlanga Main Beach

16021 10985.10 0000 36110 W035Ward 58

R 21 200.00

Umdloti Main Beach

16021 10985.10 0000 36110 W035Ward 35

R 21 200.00

TOTAL R220 480.00

FC No.: 35/444ADOPTED.

3.2 Authority to Utilise Section 116(3) of the Municipal Finance Management Act (Act 56 of 2003) for the Extension of the Lease Agreement Entered into Between Inanda Seminary (Representing the United Congregational Church of Southern Africa - KwaZulu-Natal) and eThekwini Municipality for the Purpose of Upgrading and Enhancing the Economic Potential Through Tourism of Lucy Lindlay Facility Along Inanda Heritage Route (17/2/1/1/3):(Page 27: Community Services Committee - Supplementary Agenda 2019-06-06)

With the Committee being in agreement,


3.2.1 That in terms of Section 116(3) of the Municipal Finance Management Act, authority be granted to the Head: Parks, Recreation and Culture to extend the lease agreement with the United Congregational Church of Southern Africa (Inanda Seminary) KwaZulu-Natal for a period of three (3) years as requested with the following cost estimates:

3.2.1.1 Year 1 – R184 069.80 per annum3.2.1.2 Year 2 – R202 274.50 per annum3.2.1.3 Year 3 – R222 279.67 per annum

3.2.2 That subject to the approval of .1 above, authority be granted to the Head: Real Estate to conclude and sign the new lease agreement with the owners of the property as requested and that public notices be advertised in the relevant print media requesting comments or objections to the proposed extension of the lease agreement in accordance with the requirements of Section 116(3) of the Municipal Finance Management Act.

3.2.3 That subject to the approval of .1 and .2 above, the lease agreement shall be for a period of three (3) years commencing on the commencement date of the rental and escalating at 9% per annum for the ensuing two (2) years, with rights of renewal.

Financial Implications:Vote No. 15602.15200.12120.0000 MRC01.0010FC No. 34/354ADOPTED.


4. REPORT OF THE GOVERNANCE AND HUMAN RESOURCES COMMITTEE: MEETING HELD ON 2019-06-12

(Page R10)

4.1 Request to Reprioritize Capital Funds to Meet Urgent Priorities: Sizakala Customer Service Unit (17/2/2/2/1):(Page 16: Governance and Human Resources Committee - Agenda 2019-06-12)


That the request for prioritization of a portion of the capital funds allocated to projects in the 2018/2019 financial year to meet urgent Unit needs as indicated in the Table “A” below, be approved to ensure that a conducive environment in which customer services are rendered is maintained at all times.

Table A

DESCRIPTION OF ITEM

From Project To Project Amount

Plotter (R400 000.00-R249 925.00= R150 075.00 Computer Equipment R150 075.00

uMbumbulu Alarm Upgrade (R50 000.00-R24500.00=R25 500.00)

1. KwaXimba air conditioners2. Emaphephetheni air

conditioners

R12 500.00R12 000.00

uMnini Generator (R250 000.00) 1. uMhlanga air conditioners2. Verulam air conditioners

(deficit)3. Mpumalanga air conditioners

(deficit)

R150 000.00

R60 000.00

R40 000.00

Craigieburn air conditioner (R15 000.00) Klaarwater air conditioners R15 000.00

Tongaat air conditioner (R50 000-R41 610.00) Klaarwater air condtioners R8 390.00

Nagina air conditioners (R30 000.00-R6 785.00=R23 215.00)

Ntuzuma air conditioners (deficit) R23 215.00

TOTAL R471 180.00

ADOPTED.

4.2 Provision of Essential Taxpayer Services at Sizakala Customer Services Centres (2/3/3):(Page 21: Governance and Human Resources Committee - Agenda 2019-06-12)

The Municipality seeks to enter into partnership with the South African Revenue Service (SARS) to provide for the arrangement for the Sizakala Centres to accommodate SARS in their offices to deal with tax related matters and pay rental to Council. The Members commended the Department for taking the proactive stance and requested that the remote areas be also prioritized to enable easy access to government services. With the Committee having been advised that the commencement date for the collaboration had lapsed, it was advised that a new date would be determined by the Memorandum of Understanding.

Being in support of the proposal,



4.2.1 That authority be granted to the Deputy City Manager: Governance and International Relations together with the Head: Sizakala Customer Service to accommodate the South African Revenue Services at the eThekwini Sizakala Customer Services Centres.

4.2.2 That subject to the adoption of .1 above, authority be granted to the City Manager to enter into a Memorandum of Understanding with the South African Revenue Service in an effort to coordinate and implement the collaboration with the South African Revenue Services until 2020-03-31.ADOPTED.

4.3 Update on Councillor Training Programmes (3/5/12):(Page 36: Governance and Human Resources Committee - Agenda 2019-06-12)

At the Support Committee it was requested that the semester courses be prioritized.

At the Executive Committee meeting recommendation .3 hereof was amended to enable the Assisted Education Policy to cater for applications for assisted education to be considered as from 30th June.

However and being in agreement with the recommendations as amended,


4.3.1 That the training programmes undertaken by Members of the eThekwini Council from August 2016 to date, as part of the Municipality’s responsibility to ensure that elected Council Members are offered opportunities towards learning and development, be noted, it being recorded that financial provision for Councillor training programmes for financial year 2018/2019 amounted to R100 000.00 (One Hundred Thousand Rand).

4.3.2 That the impact of the annual Government Gazette determining upper limits of salaries, allowances and benefits of different members of Municipal Councils on Councillors training programmes be noted, with particular reference being made to capacity building programmes provided by the Municipality through the Councillors Assisted Education Policy.

4.3.3 That in view of the fact that in the previous year, no Councillors’ Assisted Education applications were considered due to the provision of the then gazette Determining Upper Limits of salaries, allowances and benefits of Municipal Councils, and the fact that the current term of Council office has only two years left before termination, the Councillor Assisted Education Policy be amended to make provision for the consideration of applications from the 30th June.

4.3.4 That it be noted that the accredited Project Management and Municipal Finance Training Programmes will be offered to Councillors before the end of the 2018/2019 financial year.


4.3.5 That it be noted that the Project Management and Municipal Finance Training Programmes is currently underway with the first group of Councillors being scheduled to attend the programme from 2019-06-10 to 2019-06-14.

4.3.6 That, in line with Council’s approved Councillor Accelerated Leadership Development Programme (CALDP), workshops focusing on Business Etiquette; Diversity Management and Change Management be scheduled for all Council Members as from June 2019.

Financial Implications:FC No.: 2019/08/48Vote No: 32123.19925.12120.0000.35000-4.0010ADOPTED.

4.4 2019/20 Workplace Skills Plan and 2018/19 Annual Training Report (6/2/1): (Page 53 : Governance and Human Resources Committee - Agenda 2019-06-12)


That the 2019/2020 Workplace Skills Plan and 2018/2019 Annual Training Report contained in the report of the Acting Deputy City Manager : Corporate and Human Resources dated 2019-05-02, be approved. ADOPTED.

4.5 Naming of Streets in Ward 102 Covering N2 Business Park Development and Conubia Industrial Business Estate (25/4/15/1):(Page 62 : Governance and Human Resources Committee - Agenda 2019-06-12)

The Streets in Ward 102 covering N2 Business Park Development and Cornubia Industrial Business Estate are within a private estate and as a result the Municipality had no jurisdiction over the area. Therefore, the purpose of this report is for the Council to note that the process undertaken by the Developer is in accordance with the Council’s street naming process.


That the following proposed and reviewed name for the unnamed Street in Ward 102, covering N2 Business Park Development and Cornubia Industrial Business Estate as contained in the report of the Head : Corporate Geographic Information Systems dated 2019-02-14 and as indicated on Plan STN 14/02/19/1 GC, be approved:

STREET CODE PROPOSED NAME REVIEWED NAME MEANING

610858 Street Okuhle Okuhle Place Good things

610911 Street Unganu Umganu Road Marula tree

ADOPTED.


4.6 Naming of Street in Ward 35 Quarter Report (11/1/2):(Page 74 : Governance and Human Resources Committee - Agenda 2019-06-12)

With the Committee having been advised that the report was for Council to note that the process undertaken by the Developer is in accordance with the Council’s street naming process,


That the following proposed and reviewed name for the unnamed Street in Ward 35, covering Ridgeside Development contained in the report of the Head : Corporate Geographic Information Systems dated 2019-02-28 and as indicated on Plan STN 28/02/19/ GC, be approved:

STREET CODE PROPOSED NAME REVIEWED NAME MEANING

610857 Street Vuna Vuna Close To harvest

ADOPTED.

4.7 Restructuring of Deputy City Manager Community and Emergency Services Post (4/1/1/2/3) & (4/3/2): (Page 511 : Governance and Human Resources Committee - Agenda 2019-06-12)

At the Executive Committee meeting recommendation .4 hereof was amended to indicate that the Terms of Reference for Council Committees address any mis-alignment in the reporting lines of the Units.

Consequently,


4.7.1 That authority be granted for the restructuring of the existing post of Deputy City Manager: Community and Emergency Services into two (2) posts of Deputy City Manager: Community Services and Deputy City Manager: Emergency Services respectively; and for the transfer of the Metro Police Unit from the City Manager’s Operations Office Cluster and the allocation of the respective Units as follows:

Deputy City Manager:Community Services

Deputy City Manager:Security and Emergency Services

● Health● Parks, Recreation and Culture● Afro-ecology● Stadia and Facilities

● Metropolitan Police● Fire and Emergency Services● Security Management● Disaster Management● Safer Cities and iTrump

4.7.2 That in terms of the requirements of the Local Government Regulations on the Appointment and Conditions of Employment for Senior Managers, authority be granted to the City Manager to advertise the positions of the Deputy City Manager: Community Services and Deputy City Manager: Security and Emergency Services.


4.7.3 That in terms of the requirements of the Local Government Regulations on the Appointment and Conditions of Employment for Senior Managers, authority be granted to the City Manager to establish a recruitment panel that will proceed with the interviews for the two (2) positions.

4.7.4 That the Terms of Reference for Council Committees be amended to address any mis-alignment in the reporting lines of the Units.Recommendations REFERRED BACK, by majority vote, to the Executive Committee for further consideration.

4.8 Reviewed Employee Assisted Education Policy (EAEP) (6/P):(Page 512 : Governance and Human Resources Committee - Agenda 2019-06-12)


That the Employee Assisted Education Policy as attached in the Annexure “A” of the report by the Deputy City Manager: Corporate and Human Resources be adopted for implementation by the Chief Learning Officer: eThekwini Municipality Academy.ADOPTED.

5. UNITED CITIES AND LOCAL GOVERNMENT CONGRESS (UCLG) 2019: WORLD SUMMIT OF LOCAL AND REGIONAL LEADERS: REQUEST FOR ADDITIONAL FUNDING (14/2/1/1/1)

(Page 41)

Concern was expressed that the hosting of the UCLG Conference was a few months away and no firm agreement had been reached with SALGA in respect of cost apportionment. Further, the issue of a presentation that was to be made the Executive Committee hereon was queried.

Advice was provided that a meeting with the Chief Executive Officer of SALGA would be held soon to finalise details, consider the extent of the financial contribution from SALGA and COGTA and to obtain sponsorships. Thereafter, a feedback session and a presentation would be provided to the Executive Committee.

In the circumstances


5.1 That the financial obligations associated with hosting of the United Cities and Local Government (UCLG) Congress, be noted.

5.2 That an additional funding of R4 440 000.00 (Four Million Four Hundred and Forty Thousand Rand) for hire of the Albert Luthuli International Convention Centre (ICC) and the maximum contribution towards the UCLG Congress to the value of R31 740 000.00 (Thirty One Million Seven Hundred and Forty Thousand Rand), be approved.

5.3 That subject to the adoption of .1 and .2 above, the City Manager be mandated to sign the Hire Agreement Contract with the Albert Luthuli International Convention Centre.

Vote No.: 34001.22710.30.12120.0000.83300.0010 : R31 740 000.00.ADOPTED.


6. LIBRARIES LEASES EXTENSION IN TERMS OF SECTION 116(3) OF THE MUNICIPAL FINANCE MANAGEMENT ACT (9/1/3 & 17/2/1/1/3)

(Page 47)

It was advised that as the proposed lease period in respect of the Libraries in question were over a three year period, the recommendation required amendment by the invoking of Section 33 of the Municipal Finance Management Act (MFMA) and not Section 116(3) thereof.

Concern was expressed that the current leases would be expiring soon and no consultation with relevant Ward Councillors on the suitability and location thereof had taken place. Furthermore, the matter should have been submitted to the Community Services Committee for consideration in the first instance.

A brief discussion ensued on maximizing the use of Libraries, a case in point being the Victoria Street Library which was situated close to the Durban City Hall Library. A measurement of the footfalls indicated that approximately thirty (30) people were utilizing the Victoria Street Library per day which was not feasible in terms of the funds outlayed for the lease, etc.

The point was made that in view of the time constraints, deferring the matter to enable the Support Committee to consider same in the first instance could lead to irregular expenditure being incurred as the leases would be expiring soon.

In that regard it was mentioned that in the interim and whilst the recommendations, as amended, were being sanctioned, affected Ward Councillors be requested engage with the Acting Deputy City Manager : Community and Emergency Services in respect of the suitability and location of the proposed leases.

Being in agreement


6.1 That for the reasons stated in the report of the City Manager dated 2019-04-09, relative to Libraries Leases Extension, Council supports the extension of the lease agreements in respect of the Libraries listed in the table below for a period of five (05) years with an option to renew for a further period of five (05) years at the discretion of the Municipality, following the directive of Section 33 of the Municipal Finance Management Act (MFMA) and the necessary Supply Chain Management (SCM) regulation.

6.2 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 for lease renewal: Libraries within eThekwini Municipality in line with the requirements of Section 33 of the Municipal Finance Management Act.

6.3 That subject to .1 above and consideration of the feedback from .2 above, the Head: Real Estate be authorized to negotiate the final terms and conditions of lease agreements taking into account the market rates and sign all documents necessary to conclude the agreements.


Table below lists libraries and their expiry dates. Reservoir Hills is excluded from the list because their new lease is about to be signed.

Library M² Expiry Date Address

Don Africana/Reference 3034.74m² 2016-07-01 to 2019-06-30 214 Dr Pixley KaIsaka Seme Street

Durban North 542m² 2016-09-01 to 2019-08-31 53 Adelaide Tambo Drive, Umhlanga

Umbilo 361m² 2016-11-01 to 2019-10-31 95 Teignmouth Road, Umbilo

Sparks Estate 427m² 2016-12-01 to 2019-11-30 48 St Theresa Road, Sparks Estate

Grosvenor 1405m² 2016-12-01 to 2019-11-30 3 Wesley Road, Bluff

Montlands 459.69m² 2017-07-01 to 2019-12-31 3A Summit Road, Montclair

Umhlanga 408m² 2017-01-01 to 2019-12-31 14 Chartwell Drive, Umhlanga Rocks

Musgrave 1150m² 2017-05-01 to 2020-04-30 397 Che Guevara Road, Berea

Hillary 243m² 2017-05-01 to 2020-04-30 120 Stella Road, Hillary

Windermere 553.41m² 2017-06-01 to 2020-05-31 236 Nineth Avenue, Morningside

Galleria 311m² 2018-05-01 to 2021-04-30 Shop No. G80/81 Kolnik & Arbour Roads

PE Street 2333m² 2018-08-01 to 2021-07-31 70/72 Dr Goonam Street, Durban

Besters 650m² Expires in 2026 Bester Camp, N25 Ntuzuma Road, Inanda


Funds Provided in 2019/2020, 2020/2021 and 2021/2022Votes : Vaious.15200.VariousFC No. 33/447ADOPTED.

7. REVISED SUPPLY CHAIN MANAGEMENT POLICY (9/P)

(Page 62)

With two (02) Executive Committee Members of the Democratic Alliance abstaining to enable their Caucus to consider the matter in the first instance and with the majority of the Executive Committee Members present being in agreement,


7.1 That further amendments to the eThekwini Municipality Supply Chain Management Policy, 2019, insofar as it relates to Petty Cash Regulation 15; Procurement of Goods and Services Under Contracts Secured by Other Organs of State (Regulation 32); Amendments to Contracts: MFMA 116(3) (Regulation 55); and Blacklisting (Regulation 56); as indicated in the report of the City Manager dated 2019-05-13 and as indicated hereunder, be adopted.


Section 3: Technical and Material amendments

7.1.1 Item 3.1 - Page 34-35: Petty Cash Regulation 15

This regulation has been enhanced in order to provide clear guidelines and control in the management of petty cash for immediate payments of sundry expenses that may be needed by officials from time to time. Petty cash can only be dispensed and approved for expenses that supports the operation of the respective Branch, Department and or Unit.

The policy has put in place control mechanisms to prevent abuse and misuse of petty cash, refer to Annexure A of the report of the City Manager dated 2019-05-13.

7.1.2 Item 3.2 - Regulation 32, Page 58-59: Procurement of goods and Services under Contracts Secured by other Organs of State

The regulation has been strengthened in order to provide policy certainty regarding the requirements needed to invoke the use of this regulation, to clarify the process and the documentation that is required. At a policy level, the enhancement provides a control environment to deter any potential irregularities, refer to Annexure B of the report of the City Manager dated 2019-05-13.

7.1.3 Item 3.3 - Regulation 55, Page 105-108: Amendments to Contracts – MFMA 116(3)

There is an increasing number of contract extensions or amendments that are filed for consideration in the Supply Chain Management process. Often the application for the use of this regulation lacks needed detail by the decision makers to process and approve without delay. It has been regrettably witnessed that some contracts could not be extended owing to insufficient details in reports to Bid Adjudication Committee. It is against background that concise detail is defined to ensure a seamless and responsive process, refer to Annexure C of the report of the City Manager dated 2019-05-13.

7.1.4 Item 3.4 - Regulation 55, Page 108-110: Blacklisting

In light of the appeals and Court decisions that have resulted in dismissing the decisions made by the Blacklisting Committee, a need for the overhaul of the regulation is necessary so as to ensure that the Committee discharges its duties within the terms of reference which are legally sound and acceptable. Refer to Annexure D of the report of the City Manager dated 2019-05-13.ADOPTED, by the majority vote.

8. C40 NEW BUILDING PROGRAMME : CONSULTATION ON GREEN BUILDING INCENTIVE POLICY AND DRAFTING OF AN APPROPRIATE BY - LAW (32/2/2)

(Page 72)


8.1 That progress made on the C40 Cities Climate Leadership Group South Africa New Buildings Programme, details of which are contained on page 78 of the Report by the City Manager dated 2019-02-26, be noted, it being recorded this include the signing of the agreement between eThekwini Municipality and C40 on 14 December 2017; establishment of core team comprising Managers from the Energy Office; and convening strategic engagements on key matters.


8.2 That authority be granted for eThekwini Municipality’s Energy Office to begin drafting and consulting for an Incentive Policy that supplements Clause 7.15 of the eThekwini Rates Policy.

8.3 That authority be granted for the Municipality’s Energy Office, in liaison with the Head: Legal Services and Compliance, to begin drafting an appropriate legal mechanism/s to enforce Net Zero Carbon and sustainable development which may include a By-Law.ADOPTED.

2. SECOND REPORT OF THE EXECUTIVE COMMITTEE: MEETING HELD ON TUESDAY, 2019-06-27

1. REPORT OF HUMAN SETTLEMENTS AND INFRASTRUCTURE COMMITTEE: SPECIAL MEETING HELD 2019-06-21

(Page R1)

1.1 Authority to Transfer Funds to Project Y8844: Ntuzuma B Sewer Reticulation: Wards 38, 41 and 45: WS 2019/106 (23/2/6/3/5/1): (Page 1: Human Settlements and Infrastructure Committee - Agenda 2019-06-21)

As a result of savings identified, the Department requests authority to transfer funds to connect houses to sewer reticulation network to serve Ntuzuma B Sewer Reticulation to various pockets of Wards 38, 41 and 45, which are currently without a waterborne sewer. The project will entail construction of approximately 13000m of uPVC Class 34, 160mm diameter sewer reticulation.

With the Committee being in support thereof,


1.1.1 That authority be granted for the Deputy City Manager: Trading Services to transfer an amount of R23 500 000.00 (Twenty Three Million Five Hundred Thousand Rand) from Project No. Y8656: Refund to THD for Trunk Sewer to Drain Retail Park Project to Project Y8844: Ntuzuma B Sewer Reticulation 2019/2020 and 2020/2021.

1.1.2 That authority be granted for the Deputy City Manager: Finance to include in his adjustment budget a report on the transfer of R23 500 000.00 (Twenty Three Million Five Hundred Thousand Rand) from Project No. Y8656: Refund to THD for Trunk sewer to drain Retail Park Project.

Project No: Y8844 R23.5M (2019/20) To be met by saving from Project No. Y8656R10M (2020/21) Refund to THD for trunk sewer to drain retail

park via adjustment budget in (2019/2020 and 2020/2021)FC No.: 365/C175ADOPTED.


1.2 Authority to Transfer Funds to Project Y8838: Merebank, Southern WWTW: Installation of Jacobs Line Flowmeter (23/1/11/2/1/2): (Page 4: Human Settlements and Infrastructure Committee - Agenda 2019-06-21)

As savings have been identified, authority is sought to transfer funds from Project No. Y8656: Trunk Sewer to Drain Retail Park to Project No. Y8838: Merebank, Southern WWTW: installation of Jacobs Line Flow meter, in the 2018/2019 financial year, to install inflow sewage line meter in order to comply with water use license conditions.

.COMMITTEE RECOMMENDS:

1.2.1 That authority be granted to the Deputy City Manager: Trading Services to transfer an amount of R150 000.00 (One Hundred and Fifty Thousand Rand), excluding VAT, from the Block Sum Item, Y8656: Trunk Sewer to drain Retail Park, to Project No. Y8838: Merebank, Sothern WWTW – Installation of Jacobs Line Flowmeter in the 2018/2019 financial year.

1.2.2 That authority be granted for the Deputy City Manager: Finance to include in his adjustments budget a report on the transfer of the amount of R150 000.00 (One Hundred and Fifty Thousand Rand), excluding VAT, from the Block Sum Item, Y8656: Trunk Sewer to drain Retail Park, to Project No.Y8838: Merebank, Southern WWTW – installation of Jacobs Line Flowmeter in the 2018/2019 financial year.

Project No.: Y8838 R150 000.00 (To be met by transfer from Block Sum Item, Y8656 – Trunk Sewer to drain Retail Park in the 2018/2019 financial year capital budget)

FC No.: 365/C174ADOPTED.

1.3 Request for Authority to Transfer Funds from Savings Identified in the USDG and Capital Expenditure Budgets to Project Y6525, 2018/2019 Financial Year, WS2019/095 (23/2/2):(Page L18: Human Settlements and Infrastructure Committee - Agenda 2019-06-21)

The Head: Water and Sanitation advised that the request was to transfer funds from savings identified in the CAPEX budget for water and sanitation to Project No. Y6525: Provision of Water and Sanitation Services to Human Settlements and Schools, to regularize over expenditure incurred under projects No. Y6525 and funding of refurbishment done, yet to be verified during the remaining period on the 2018/2019 financial year.

With the Committee being in support of the proposal,


1.3.1 That authority be granted for the Deputy City Manager: Trading Services to transfer funds in the amount of R137 300 000.00 (One Hundred and Thirty Seven Million Three Hundred Thousand Rand) from CAPEX budget savings to pay for work undertaken under project Y6525: Provision of Water and Sanitation Services for Human Settlements and Schools.


1.3.2 That authority be granted for the Deputy City Manager: Finance to include in his adjustments budget a report on the transfer in the amount of R137 300 000.00 (One Hundred and Thirty Seven Million Three Hundred Thousand Rand) from the CAPEX budget in the final adjustment budget for the 2018/2019 financial year.

FC No.: 365/C178ADOPTED.

1.4 In-Sourcing of Waste Management Service at Umlazi Township (24/2/6):(Page L17: Human Settlements and Infrastructure Committee - Agenda 2019-06-21)

A proposal to in-source waste management service at Umlazi Township with effect from 01 July 2019 was submitted. Noting that there had been several major service delivery disruptions at Umlazi since December 2017 due to contractual disputes whereby the residents had been left without refuse removal service for weeks. These disruptions have intensified from February 2019 to date. The Cleansing and Solid Waste Unit has since resolved to recommend to Council to consider in-sourcing refuse collection service at Umlazi Township to minimize disruptions and potential health hazard created by haphazard dumping.

It had been acknowledged that the engagement of external contractors at Umlazi has caused negative unintended consequences and has impacted negatively on the City’s image. Given the fact that service disruptions have been continuing for more than two years, it has become imperative for the Cleansing and Solid Waste Unit to take a more focused approached to resolve these challenges facing the community of Umlazi Township.

The Executive Committee supported the proposal, with both political and administrative leadership being requested to effectively manage the process thereby achieving a smooth transition from an outsourcing to an insourcing model.

Accordingly,


1.4.1 That, given the ongoing waste management service disruptions at Umlazi Township and the local community’s continued exposure to health hazard, authority be granted to the Deputy City Manager: Trading Services to facilitate the process of in-sourcing the waste management service at Umlazi Township and for this operational arrangement to come into effect from 01 July 2019.

1.4.2 That, subject to the approval of .1 above, Council notes that a temporary operational arrangement will be put in place until the Cleansing and Solid Waste Unit finalises a new organogram to include personnel to cater for operational requirements of Umlazi Township waste management service.

1.4.3 That, Council notes the temporary operational arrangement referred to in .2 above will result in an increase in the overtime of the permanent workers, to include hours for Umlazi waste management service and, that this will be reported accordingly for accountability purposes.


1.4.4 That Council notes that a report for the creation of supernumerary positions in relation to Umlazi waste management service will be submitted to the relevant authorities for approval and, that Council policies with regard to staff recruitment and selection process will be adhered to during this engagement.ADOPTED.

2. ACCOUNTING POLICIES IN TERMS OF SECTION 122 (3) OF THE MUNICIPAL FINANCE MANAGEMENT ACT FOR THE YEAR ENDED 30 JUNE 2019

(Page 1)


That in order to ensure compliance with Section 122 (3) of the Municipal Finance Management Act and the National Treasury guidelines, that require the Annual Financial Statements of the Council and its Entities to be in accordance with the Standards of Generally Recognized Accounting Practice and Standards of Generally Accepted Municipal Accounting Practice, the Accounting Policies as reflected in Annexure “A” to the report of the City Manager dated 2019-06-10, be approved.ADOPTED.

3. REPORT ON INVESTMENTS FOR THE PERIOD ENDED 31 MAY 2019 (7/11/4)

(Page 35)

Confirmation was given that the Municipality maintains a good investment record. That due processes will be followed to retain unused grants, depending on the closing balance to be reported as at 30 June 2019.

On this basis,


That the report on investments for the eThekwini Municipality as at 2019-05-31, which records the total funds invested at financial institutions as R6 653 Million, at an average rate of return on investments of 8.03%, as submitted by the City Manager, in line with the requirements of the Municipal Cash Management and Investment Regulations of the Municipal Finance Management Act, 2003, be noted.NOTED.

4. APPROVAL OF SURETY OF A CASHFLOW SHORTFALL TO MUNICIPAL ENTITIES FOR FINANCIAL YEAR END: 30 JUNE 2019 (2/10/1/1/7)

(Page 41)COMMITTEE RECOMMENDS:

That taking cognizance of the Inkosi Albert Luthuli International Convection Centre (Pty) Ltd and the Durban Marine Theme Park (SOC) Ltd operating on/or close to a break-even level, (excluding depreciation and finance charges for Durban Marine Theme Park (SOC) Ltd), the Council confirms its commitment to ensuring the future financial viability of the two (2) aforesaid Entities and more specifically to meet any funding shortfalls that may compromise their ability to continue trading as a “going concern”.ADOPTED.


5. FUNDING ALLOCATION FOR CLARE ESTATE CREMATORIUM FROM URBAN SETTLEMENT DEVELOPMENT GRANT (USDG) (31/8/6/2/3 & 7/4/1)

(Page 43)

It was unanimously agreed that the Municipality should pay special attention to cemeteries and crematoria requirements across the eThekwini Municipal area. As such, that a report in this regard be submitted for consideration by the relevant Council Committees.


5.1 That Council approves funding allocation in the amount of R5 Million to the Clare Estate Umgeni Hindu Crematorium Society from the Urban Settlement Development Grant (USDG) to replace three incinerators or cremators at the Clare Estate Crematorium.

5.2 That subject to the adoption of .1 above, authority be granted for the Deputy City Manager: Finance to provide funding of R5 Million from savings identified from the USDG Grant in the 2018/2019 financial year, subject to confirmation of the installation of the incinerators by the Clare Estate Umgeni Hindu Crematorium Society.Recommendations AMENDED by the addition of the following recommendation 5.3:

“5.3 That in an endeavor to urgently address the essential requirements of all cemeteries and crematoria within eThekwini Municipal Area, the Head : Parks, Recreation and Culture be requested to provide a report thereon for consideration by the relevant Council Committees.”

and, thereafter ADOPTED.

6. AMENDMENT OF CLEANSING AND SOLID WASTE DOMESTIC AND SUNDRY TARIFFS 2019/2020 FINANCIAL YEAR (7/6/1/2)

(Page 50)


6.1 That, in order to rectify a minor error which has occurred in the tariff figure, Council approves the amendment of the Sundry Tariff for Cleansing and Solid Waste Domestic 2019/2020 financial year from R540.68 (Five Hundred and Forty Rand Sixty Eight Cents) to R502.49 (Five Hundred and Two Rand Forty Nine Cents).

6.2 That Council notes and approves the amendment of the Domestic bands as illustrated in Annexure 1 attached to the report of the City Manager dated 2019-06-13.ADOPTED.


7. MUNICIPAL FINANCE MANAGEMENT ACT COST CONTAINMENT REGULATIONS, 2019 (7/1/3/2)


(Page 55)

Recommendation 7.1 hereunder was amended to make reference to the Regulations as discussed at the Ministers and Members of Executive Council (MINMEC) meeting. It was clarified that SALGA had resolved that prior consultation should take place on matters coming from the National Government and requiring implementation at the Local Government level, hence, the amendment being effected in Recommendation 7.1.

Speaking on the matter, some Members stressed the importance of increased effort and commitment to ensure effective implementation of the recommended measures thereby cutting costs in areas identified in terms of the Cost Containment Regulations.

The Executive Committee Member Nkosi of the IFP abstained at this stage to enable him to take the matter to his Caucus.

Thereafter, with the majority being in support of the recommendations, as amended,


7.1 That, notwithstanding the decision taken at the meeting of the Ministers and Members of Executive Council (MINMEC) to suspend the operation of the Regulations, Council adopts as policy, the cost containment measures contained in the Municipal Cost Containment Regulations, 2019, attached as Annexure B in the report of the City Manager dated 2019-06-10.

7.2 That subject to .1 above, in the event there are any changes following the MINMEC decision, those changes shall be implemented by the eThekwini Municipal Council with regard to the Cost Containment Regulations.

7.3 That subject to .1 above, all Policies, Procedures and Circulars affected as a result of the Cost Containment Regulations 2019, be updated in alignment with the new Regulations and tabled for approval by delegated authorities and updated Policies tabled at next Council meeting.

7.4 That subject to .1 above, where no Policy exists, the relevant cost containment measures be incorporated into existing Standard Operating Procedures, Operating Processes as well as Practices.

7.5 That in line with .3 and .4 above, responsibility and accountability for the implementation of the Regulations be assigned as contained in Annexure A attached in the report of the City Manager dated 2019-06-10.

7.6 That Council refers the reporting of the cost containment measures implemented and aggregate amounts saved per quarter, together with the regular reports on reprioritization of the cost savings and on the implementation of the cost containment measures to the Municipal Public Accounts Committee and the


Audit Committee, as part of the of the in-year Budget Reports tabled in the meetings of these Committees.

7.7 That the Reports mentioned in .6 above, be reported to National Treasury and KwaZulu-Natal Provincial Treasury as part of the in-year Budget Reports sent to these Authorities.ADOPTED.

8. REPORT ON AWARDS MADE BY THE CITY FOR THE MONTH OF MAY 2019 (9/1/3)

(Page 70)

During deliberations, the Committee noted that some of the matters being interrogated are sub judice, hence, due diligence would be exercised at the appropriate time.


8.1 That the public tender awards by the City for the month of May 2019, inclusive of awards made in terms of Section 36 of the Supply Chain Management Regulations, as contained in the report by the City Manager dated 2019-06-14, be noted.

8.2 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.

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

8.4 That the City Manager shall table a report to the Committee 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 8.1 and 8.2 NOTED and Recommendations 8.3 and 8.4 ADOPTED.

9. BUDGET STATEMENT REPORT FOR THE MONTH ENDED 31 MAY 2019 (7/1/2/1)

(Page 87)

In scrutinizing the Budget Statement, focus was put on the aspect of the irregular expenditure and the over-expenditure incurred, as well as unmet service delivery targets in certain areas. Whether consequence management was being implemented to hold parties responsible to account.

The processes and structures involved within the Municipality to deal with matters referred to above were outlined. The attention was drawn to compliance


requirements associated with the processing of payments, emphasis being put on the importance to adhere to procurement and payment processes to avoid delays.


That the Budget Statement Report for the month ended 31 May 2019, submitted in compliance with Section 71 of the Local Government: Municipal Finance Management Act No. 56 of 2003, and in terms of Government Notice 32141 dated 2009-04-17, relating to the Local Government: Municipal Finance Management Act 2003 and the Municipal Budget and Reporting Regulations, be noted.NOTED.

10. WRITE-OFF OF INTEREST LEVIED ON ACCOUNTS FOR PROVINCIAL PUBLIC WORKS DEPARTMENT (7/6/3/1)

(Page 243)

The Executive Committee Members of the Democratic Alliance (02) and the Inkatha Freedom Party (01) voted against the write-off of interest levied on accounts of the KwaZulu-Natal Provincial Department of Public Works. The view was the setting of an undesirable precedent and that the Government Department is being given a special treatment, but, such is not extended to the struggling City ratepayers.

The Executive Committee Members of the African National Congress (03), supported the interest debt write-off. This was based on the commitment by the Department of Public Works to pay all outstanding capital amounts to the Municipality and only requesting interest debt write-off.

Accordingly, with the casting vote of the Chairperson, the matter was supported by the majority vote. Therefore,


10.1 That, on a non-precedential basis, Council approves the reversal of all interest levied on accounts of the KwaZulu-Natal Provincial Department of Public Works.

10.2 That Council informs the KwaZulu-Natal Provincial Department of Public Works of the decision in .1 above, and that, in future, all charges for rates should be paid by due dates.

10.3 That in the event of failure by the KwaZulu-Natal Provincial Department of Public Works to fulfill the condition in .2 above, Council notes that interest will be charged to them as required and no reversal will be considered in future.ADOPTED, by the majority vote.

11. BACK TO BASICS REPORT FOR QUARTER 3 OF 2018/19 FINANCIAL YEAR (2/3/2/1)

(Page 246)



That in terms of Circular No. 4 of 2019 from the Provincial Department of Co-operative Governance and Traditional Affairs, the Back to Basics Report for Quarter 3 of the 2018/2019 financial year, details of which are contained in the report of the City Manager dated 2019-06-20 and the summary of the assessment score as indicated hereunder, be noted, it being recorded that eThekwini Municipality is categorised as functional in quarter 3 after having achieved an assessment score of 79%.

Summary of Assessment Score for Quarter 3

PILLAR PILLAR NAME TOTAL POINTS

ACTUAL ACHIEVED

No. of Points Percentage

A Putting People First 8 5 63%

B Delivering Basic Services 25 22 88%

C Good Governance 13 13 100%

D Sound Financial Management 19 12 63%

E Building Capable Local Government Institutions

8 6 75%

TOTAL 73 58 79%

ADOPTED.

12. CUSTOMER RELATIONS MANAGEMENT SYSTEM (2/3/3 & 10/2/2)

(Page 252)

It will be recalled that Council in 2015 took a decision to integrate the customer service function throughout the eThekwini Municipality to achieve operational efficiency. Therefore, authority is sought to allocate funding for the acquisition and implementation of the JDE E1 for standardization purposes. Confirmation had been given that this system will satisfy the Municipality’s customer relations needs.

The attention of the Committee was drawn to operational challenges reported as being experienced by some of the Departments using the JDE system. Also, complaints received about unsatisfactory customer service, with responses thereto sometimes linked to inefficiencies by the system. As such, a stakeholder workshop was recommended to obtain a broader understanding on the functioning of the system and ensure parties concerned reach a common understanding and agree on interventions where required.

The Executive Committee Member Nkosi of IFP (01) voted against this matter pointing the allocation of huge funds for this system while it appeared there were still unresolved issues.

With the majority being in support based on the commitment that the system will achieve the requirements with regard to the standardization of customer service Municipal-wide,



12.1 That authority be granted to the Deputy City Manager: Governance and International Relations to incur expenditure in the amount of R59 000 000.00 (Fifty Nine Million Rand) required to implement the Integrated Customer Services Programme.


12.2 That authority be granted to the Deputy City Manager: Finance to identify savings amounting to R13 333 333.33 (Thirteen Million Three Hundred and Thirty Three Thousand Three Hundred and Thirty Three Rand and Thirty Three Cents) for the 2019/2020 financial year to fund the Planning and Blueprint phases of the project.

12.3 That a Cost Centre number for this project be created and reside in the Office of the Deputy City Manager: Governance ad International Relations.ADOPTED, by the majority vote.

13. AMENDMENT TO CITY FLEET UNIT ORGANOGRAM (4/1/1/2/6)

(7)


13.1 That the approved Organisation and Establishment of the City Fleet Unit in line with the Institutional Review Framework acceded to by the Municipal Council on 31 July 2012, as reflected in the report by the Head: Organisational Development and Change Management dated 2018-11-20, be amended.

13.2 That the recommended organisation and post establishment of the City Fleet Unit, as reflected on the report by the Head: Organisational Development and Change Management dated 2018-11-20, be created.

13.3 That subject to the adoption of .1 and .2 above, authority be granted to the Head: City Fleet to implement the recommended structure of Organisational and Establishment of City Fleet Unit, it being recorded that the implementation thereof will require an additional expenditure of R12 050 643.00 (Twelve Million and Fifty Thousand Six Hundred and Forty Three Rand) on personnel costs to be implemented over a period of three (3) years.

13.4 That it be noted that the cost implication for the establishment of the City Fleet Unit has been provisionally calculated using the median of the salary scales of the envisaged TASK Grade of the posts subject to grading process by the Compensation Management Branch and that all new and amended posts will be subject to the grading process in order to be given a correct TASK Grade.

13.5 That, due to an urgent need to fill critical posts, authority be granted to the Deputy City Manager: Finance to facilitate the process of filling critical vacant funded posts within the City Fleet Unit.ADOPTED.

14. TRANSFER OF COUNCIL FUNDS TO ETHEKWINI TRANSPORT AUTHORITY FUND FOR FINANCIAL YEAR 2018/2019 (7/5/1)

(Page 414)

EThekwini Transport Authority is a statutory body which operates under specific legislative and mandatory requirements. The Authority receives funds from National and Provincial Government through grants. EThekwini also contributes funding to promote safe and effective transport system for the residents of eThekwini. Hence, authority is sought to transfer an amount of R3 Million to the EThekwini Transport Authority Fund.


With the Executive Committee Members of the Democratic Alliance abstaining,


That Council approves the transfer of funds from eThekwini Municipality Council to eThekwini Transport Authority (ETA) to the value of R3 000 000.00 (Three Million Rand) for the 2018/2019 financial year which ends in June 2019 to allow ETA to continue with forward planning for transport infrastructure and development.

Vote No.: 50330 25445.300 12120 0000 MRC01 0010FC No.: 2019/20/044ADOPTED, by the majority vote.

15. PROPOSED LAND ACQUISITION FOR SOLID WASTE LANDFILL SITE(SW 2019/023) (24/8/2/1/2)

(Page 420)

With the Executive Committee Members of the Democratic Alliance abstaining,


15.1 That for the reasons stated in the report of the City Manager dated 2019-06-21, authority be granted to the Head: Real Estate to finalise the compensation process as a consequences of the land expropriation and, tender a formal offer and payment to Tongaat Hulett Limited at the assessed compensation amount of R27 600 000.00 (Twenty Seven Million Six Hundred Thousand Rand), including VAT,and R100 000.00 (One Hundred Thousand Rand) for conveyancing fees, in respect of the property described as Proposed Portion [A] of the Farm Kirkfalls No. 14227, in extent approximately 550,4662 hectares.

15.2 That subject to the adoption of .1 above, the Capital Budget indicated below to provide for this expenditure, be approved.

Project No.: WSH01 R27 700 000.00 Provided 2018/2019 Capital BudgetR 350 000.00 Provided 2019/2020 Capital Budget

FC No.: 366/C50ADOPTED, by the majority vote.

16. NOTING OF SECTION 116(3) OF THE MUNICIPAL FINANCE MANAGEMENT ACT TO EXTEND CONTRACT 1H-13061 FOR THE AMENDMENT OF SCOPE AT WOODYGLEN PHASE 1 HOUSING PROJECT (22/7/1/1/3 & 9/1/3)

(Page 441)

It will be recalled that Council previously gave authority for the utilisation of the USDG grant funding for the construction of retaining walls at Woodyglen Phase 1 Housing Project. This was after experiencing restrictions on site sizes thus requiring construction of retaining walls to prevent embankment failure and the subsequent under-mining of the foundations and cracking of top structures.


It should be noted that the grant funding supports the improvement of the overall built environment by increasing access to public and socio-economic amenities. With Council having already approved the utilisation of the USDG grant, it is therefore necessary to formally note the reasons for increasing the scope of work

under the existing contract.

The Executive Committee Member Nkosi of IFP abstained on this matter. Thereafter, with the majority being in support,


16.1 That Council notes the intention to extend Contract 1H-13061 for the Woodyglen, Phase 1 Housing Project due to a challenge experienced as a result of restriction on site sizes thus requiring construction of retaining walls to approximately seventy (70) top structures to prevent embankment failure and the subsequent under-mining of the foundations and cracking to the top structures, it being recorded that Council has already approved the utilisation of grant funding for the increase in the scope of work.

16.2 That Council notes the importance to complete top structures without any delays, claims and disturbances and that further delays to complete these projects will result in contractors and professionals lodging request for escalated rates on building rates as years will go by without implementation.

16.3 That, subject to .1 above and in line with the requirements of Section 116 (3) of the MFMA, public notices be advertised in the relevant print media requesting comments and/or objections to the proposed amendment of scope underContract 1H-13061 Woodyglen Phase 1 Housing Project.

Financial Implications:USDG Grant Funding: R2 197 121.94; 2018/19 Financial YearADOPTED, by the majority vote.

17. NOTING OF SECTION 116(3) OF THE MUNICIPAL FINANCE MANAGEMENT ACT TO EXTEND CONTRACT 1H-15682 FOR AMENDMENT OF SCOPE AT EMAPHEPHETHENI PHASE 1 HOUSING PROJECT (22/7/1/1/3 & 9/1/3)

(Page 456)

A need exists to extend the scope of Contract 1H-5682 for Emaphephetheni Phase 1 Housing Project. This project is faced with the issue of inaccessibility for construction related activities due to steep terrain. Again, Council had previously approved the utilisation of the USDG grant funding to address this challenge, hence, the importance to formalize extension of scope of work under the existing contract.

The Executive Committee Member Nkosi of IFP abstained on this matter. With the majority being in support,


17.1 That Council notes the intention to extend Contract 1H-5682 for Emaphephetheni Phase 1 Housing Project to increase scope of work for the existing contractor to create access for approximately thirty two (32) top structures to enable the completion of construction work and close the project, it being recorded


that Council has already approved the utilisation of grant funding for the increase in the scope of work.


17.3 That, subject to .1 above and in line with the requirements of Section 116 (3) of the MFMA, public notices be advertised in the relevant print media requesting comments and/or objections to the proposed amendment of scope underContract 1H-5682 Emaphephetheni Phase 1 Housing Project.

Financial Implications:USDG Grant Funding: R4 160 704.25; 2018/19 Financial YearADOPTED, by the majority vote.

18. NOTING OF SECTION 116(3) OF THE MUNICIPAL FINANCE MANAGEMENT ACT TO EXTEND CONTRACT 1H-15683 FOR THE AMENDMENT OF SCOPE AT KWANGCOLOSI PHASE 1 HOUSING PROJECT (22/7/1/1/3 & 9/1/3)

(Page 478)

The KwaNgcolosi Phase 1 Housing Project is experiencing a similar challenge of inaccessibility. Clarity was provided that the Municipality receives funds for top structures from the Provincial Department of Human Settlements. Meanwhile, rural-based projects experience accessibility issues due to certain areas being exposed to steep terrain.

Accordingly,


18.1 That Council notes the intention to extend Contract 1H-5683 for KwaNgcolosiPhase 1 Housing Project to increase scope of work for the existing contractor to create access for approximately thirty five (35) top structures to enable the completion of construction work and close the project, it being recorded that Council has already approved the utilisation of grant funding for the increase in the scope of work.


18.3 That, subject to .1 above and in line with the requirements of Section 116 (3) of the MFMA, public notices be advertised in the relevant print media requesting comments and/or objections to the proposed amendment of scope underContract 1H-5683 KwaNgcolosi Phase 1 Housing Project.

Financial Implications:USDG Grant Funding: R3 111 825.78; 2018/19 Financial Year


ADOPTED, by the majority vote.

19. UPGRADING EARLY CHILDHOOD DEVELOPMENT FACILITY IN WARD 45 (17/2/1/2/3)

(Page L19)

The Executive Committee Members of the Democratic Alliance abstained on the matter, pointing out that upgrading the facility was not a sustainable model for the Municipality, but that this is the mandate of the Provincial Department of Social Development.

The upgrade was supported by other Members, given the explanation that the focus of the Municipality was to maintain the entire precinct in question for use to cater for housing development in future. It was then reiterated that the Municipality’s image was compromised when service was not rendered on areas falling outside its jurisdiction but located within its boundaries. That stakeholder engagement was required in this regard to agree on the approach for infrastructural improvements on circumstances of this nature.


19.1 That authority be granted to the Deputy City Manager: Human Settlements, Engineering, and Transport to facilitate the process of conducting a detailed technical assessment, design, costing and implementation of the Senzokuhle Crèche and Preschool, which is an Early Childhood Development (ECD) facility in Ward 45.

19.2 That authority be granted to the Deputy City Manager: Economic Development and Planning to facilitate the process of undertaking subdivision and rezoning of the land to capitalize on various other community usages, still to be determined, subject to the outcomes of the technical assessment.

19.3 That an estimated amount of R500 000.00 (Five Hundred Thousand Rand) and R1 000 000.00 (One Million Rand) be prioritised in the financial year 2019/2020 for detailed technical assessments and minor rehabilitations respectively, subject to savings being realized.

19.4 That the rehabilitation processes by the City for the ECD facility in Ward 45 be commenced on provision that the Provincial Department of Social Development has committed to operational funding resources and oversight for the compliant operation of this ECD facility.

19.5 That the Deputy City Manager: Community and Emergency Services work closely with the Head of the Provincial Department of Social Development to facilitate their operationalization plan and report to Council on respective developments.ADOPTED, by the majority vote.

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

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

COUNCILLORSCouncillor ZRT Gumede : 2019-06-10 to 07-10 (Special Leave)Councillor A Beetge : 2019-06-27 (Personal Commitments)Councillor NC Biyela : 2019-06-24 to 28 (Indisposed)


Councillor R Cloete : Request to leave at 12:00Councillor MAK Dladla : 2019-06-21 to 07-05 ( Indisposed)Councillor S Govender : 2019-0625 to 28 (Indisposed)Councillor BR Gumede : 2019-06-24 to 07-10 ( Personal Commitments)Councillor MS Gwala : 2019-06-27 (Personal Commitments)Councillor P Hlengwa : 2019-06-25 to 29 (Personal Commitments)Councillor JA Johnson : 2019-06-24 to 27 (Indisposed)Councillor SNC Khwela : 2019-06-21 to 07-04 ( Personal Commitments)Councillor ES Khanyile : 2019-06-25 to 27 (Indisposed)Councillor KN Khubone : 2019-06-27 to 28 (Personal Commitments)Councillor NL Khuzwayo : 2019-06-21 to 07-05 ( Personal Commitments)Councillor B Majola : 2019-06-24 to 29 (Personal Commitments)Councillor FW Mdletshe : 2019-06-26 to 27 (Indisposed)Councillor MP Mkhize : 2019-06-20 to 07-01 ( Indisposed)Councillor SM Mkhwanazi : 2019-06-24 to 28 (Personal Commitments)Councillor PS Mncube : 2019-06-24 to 07-04 ( Personal Commitments)Councillor E Mngadi : 2019-06-25 to 27 (Personal Commitments)Councillor SB Mngadi : 2019-06-21 to 07-04 ( Indisposed)Councillor NE Mnguni : 2019-06-26 to 28 (Indisposed)Councillor S Moonsamy : 2019-06-24 to 30 (Personal Commitments)Councilllor SB Mpanza : 2019-06-25 to 28 (Personal Commitments)Councillor LG Mthembu : 2019-06-24 to 28 (Personal Commitments)Councillor MM Mthembu : 2019-06-10 to 07-10 (Special Leave)Councillor X Nala : 2019-06-27 to 28 (Personal Commitments)Councillor PL Ncayiyana : 2019-06-24 to 07-04 ( Personal Commitments)Councillor MK Ndzimbomvu: 2019-06-21 to 07-04 ( Personal Commitments)Councillor AS Ngcobo : 2019-06-21 to 07-06 ( Personal Commitments)Councillor SB Ngcongo : 2019-06-25 to 07-05 ( Indisposed)Councillor M Nojiyeza : 2019-06-24 to 07-05 ( Indisposed)Councillor DR Nowbuth : 2019-06-29 (Personal Commitments)Councillor W Nyaba : 2019-06-24 to 28 (Indisposed)Councillor TK Phohlo : 2019-06-24 to 07-01 ( Indisposed)Councillor R Pillay : 2019-06-20 to 30 (Indisposed)Councillor JP Prinsloo : 2019-06-27 (Personal Commitments)Councillor GDA Pullan : 2019-07-11 (Personal Commitments)Councillor A Ramkissoon : 2019-06-12 to 07-31 ( Indisposed)Councillor A Shaheed : 2019-06-27 (Personal Commitments)Councillor ES Shezi : 2019-06-20 to 07-04 ( Personal Commitments)Councillor JB Thabethe : Request to leave at 11:30Councillor C Xesibe : 2019-06-27 (Personal Commitments)Councillor MC Xulu : 2019-06-25 to 07-01 (Personal Commitments)Councillor TG Zungu : 2019-06-20 to 07-05 ( Personal Commitments)Councillor MH Zwane : 2019-06-24 to 07-05 ( Personal Commitments)

AMAKHOSIInkosi V Cele : 2019-06-27 (Personal Commitments)

City Administration: Secretariat27 June 2019

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