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KRR(2020-02-27)(SAM)[CHALL-181545] 2020-03-02

COUNCIL DECISION CIRCULAR : MEETING HELD ON 2020-02-27

TO ALL DEPUTY CITY MANAGERS AND HEADS:

Attached please find decisions adopted by the Council at its meeting held on 2020-02-27.

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 – 2020-02-27)

1. FIRST REPORT OF THE EXECUTIVE COMMITTEE: SPECIAL MEETING HELD ON TUESDAY, 2020-02-11

_____________

1. REPORT OF ECONOMIC DEVELOPMENT AND PLANNING COMMITTEE: Meeting held 2020-02-06

(Page R1)

1.1 Motivation for Approval of Greater Inanda Local Area Plan, Functional Area Plan and Draft Scheme (Contract No. 1N-34973) November 2019 (21/5/1):(Page 1: Economic Development and Planning Committee – Agenda 2020-02-06)

The Spatial Development Framework (SDF) forms part of the Integrated Development Plan (IDP). It also gives guidance on the preparation of a Land Use Management System for an area.

The Inanda area, due to historic planning, has high levels of informality and infrastructural neglect. The area is in dire need of spatial restructuring and basic service interventions. Furthermore, it is difficult to retain or attract investment required for employment opportunities and economic growth. Hence, there is therefore a need for a coordinated planning and implementation approach for improving socio-economic conditions of the area.

The area does not have a Land Use Scheme and, the Northern Spatial Development Plan, and the Phoenix-Inanda, Ntuzuma and KwaMashu (INK) Local Area Plan, are not detailed enough to provide the necessary information to make informed planning decisions to ensure effective use of land in the area.

In view of the foregoing, which would also promote Plan 1 of the IDP, which aims to lead, direct and manage the spatial path, built and natural environment to ensure sustainable and integrated growth and development of the Municipality for the benefit of its citizens,

COMMITTEE RECOMMENDS:

That the Greater Inanda Local Area Plan, Functional Area Plan and Draft Scheme, dated November 2019, which aims to provide coherent plans to guide and manage future developments, regulate land use and improve the physical, economic and social conditions of the Phoenix-Inanda, Ntuzuma and KwaMashu (INK) Local Area, be approved.ADOPTED.

1.2 Request for Approval of Economic Development Incentive Policy (20/1/P):(Page 56: Economic Development and Planning Committee - Agenda 2020-02-06)

Approval is being sought for the award of incentives to applicants in terms of the Economic Development Incentive Policy (EDIP), which gives effect to Clause 14 of the approved eThekwini Municipality Rates Policy.


The EDIP was developed with the aim of providing a robust, adaptable environment, with the eThekwini Municipality having recognized that the investment environment is continuously changing, thereby providing economic incentives which seek to attract investors in key sectors that are pivotal to job creation.

It is envisaged that the offer of incentives, based on the evaluation of applications received, will attract investment which will contribute to increased revenue through property rates in the medium to long term, and enhance export activities through increased manufacturing and investment in local industries.

The following category of developments are offered rebates:

(i) Greenfield Developments: The vacant land may receive a rebate equivalent to the difference in rate randage of the intended use of the land, it being noted that the value of the rebate is guided by the Council’s Annual Budget process.

(ii) Brownfield Developments: Rebates become effective on the date of the start of construction for a maximum period of three (3) years, or until such time as an occupancy certificate has been issued, whichever is earlier. The rebate is calculated as the difference between the vacant land rates,and the rates for the proposed use (the former being higher than the latter) during the period of construction.

Having noted the foregoing,


1.2.1 That the award of rates incentives in terms of the Economic Development Incentive Policy, which provides for economic incentives that will attract investors in key sectors that are pivotal to job creation, be approved.

1.2.2 That authority be granted to the City Manager to enter into Memoranda of Agreement with the approved applications in the Greenfields category, as listed below:

1.2.2.1 Kerry Ingredients South Africa (Pty) Ltd, a spice manufacturing facility located at ERF 225, Cliffdale Keystone Park, it being noted that the property investment is valued at R586 284 706.82 (Five Hundred and Eighty Six Million Two Hundred and Eighty Four Thousand Seven Hundred and Six Rand Eighty Two Cents).

1.2.2.2 Fortress Income 8 (Pty) Ltd, which relates to the construction of the Cornubia Logistics and Business Development Park (Portion 1 of ERF 26 Cornubia) facility in the City’s key development node in the north of the Municipality.

1.2.3 That authority be granted to the Head: Revenue Management to undertake the administrative process in respect of the implementation of the rates rebate.

1.2.4 That the Head: Economic Development and Investment Promotion submits regular reports to the Economic Development and Planning Committee on the broader economic impact of the incentive offered.ADOPTED.


1.3 New Partnership Agreement with C40 Cities Climate Leadership Group (32/2/2):(Page 68: Economic Development and Planning Committee - Agenda 2020-02-06)

Approval is being sought for the eThekwini Municipality to enter into a new agreement with C40 Cities Climate Leadership Group (C40) for a further period of three years.

eThekwini Municipality has been a member of C40 since 2016, and the initial Agreement of Partnership, which was limited to a three-year cycle, has come to an end. The Municipality has benefitted greatly from the partnership with C40, to the value of R20 000 000 (Twenty Million Rand), whilst also giving officials an invaluable platform to learn and share learnings on climate change related issues.

The continued partnership will greatly assist in decreasing greenhouse gas emissions and adapting to climate change risks,

The primary benefits to the eThekwini Municipality will be:

Access to Cities that have Climate Change Adaptation and Mitigation expertise and knowledge through a platform that is developed to facilitate the exchange of such expertise and knowledge;

The continued positioning of the eThekwini Municipality as a leader in Climate Change Adaptation and Mitigation by the contribution of eThekwini Municipality’s expertise to the Forum.

Access to opportunities that emerge from eThekwini Municipality’s position as a global leader in addressing climate change, especially in a developing economy context.

With the Executive Committee being in agreement,


1.3.1 That authority be granted to the City Manager, on behalf of the eThekwini Municipality, to enter into a new agreement with C40 Cities Climate Leadership Group, for the next three financial years (2019/2020 to 2021/2022), to enable continued initiatives to deal with climate change matters from a global perspective.

1.3.2 That subject to the adoption of .1 above, authority be granted to the City Manager to sign the agreement with C40 Cities Climate Leadership Group on behalf of the eThekwini Municipality.ADOPTED.

1.4 Memorandum of Agreement to Facilitate eThekwini Municipality’s Participation in the Global “Future Cities Programme” of the United Kingdom Prosperity Fund (7/4/1 & 20/1/7/1):(Page 73: Economic Development and Planning Committee - Agenda 2020-02-06)

Authority is being sought to formalise eThekwini Municipality’s participation in the Global “Future Cities Programme” of the UK Prosperity Fund by entering into a Memorandum of Agreement between the eThekwini Municipality and the British High Commission in South Africa.


The Fund is a UK government initiative to support sustainable and inclusive economic growth in middle income developing countries, whilst creating new opportunities for international business, including British companies.

Through the “Future Cities Programme”, technical support is provided to Cities around key intervention areas related to transport, urban planning and resilience. Following consultation with Municipal stakeholders, two intervention areas have been identified for further scoping, i.e:

Intervention 1: Improved Data Integration, Collection and Analysis to Facilitate Collaborative Informal Settlement Action in Durban.

Intervention 2: Enhanced institution and governance co-ordination for supporting alignment of stakeholder plans working on transit oriented development.

The aforementioned interventions will assist in advancing local level priorities and support the City’s work in achieving the objectives of global agendas such as the New Urban Agenda and the Sustainable Development Goals and, national priorities in relation to Urban Resilience and Planning.

Given the global significance of the Future Cities Programme and eThekwini Municipality’s participation in the programme,


1.4.1 That the eThekwini Municipality’s participation in the Global Future Cities Programme of the United Kingdom Prosperity Fund, a United Kingdom initiative to support sustainable and inclusive economic growth leading to poverty reduction in middle-income developing countries, be supported.

1.4.2 That authority be granted for the City Manager, on behalf of the eThekwini Municipality, to enter into a Memorandum of Agreement (MOA) with the British High Commission in South Africa, in an effort to formalize the Municipality’s participation in the Future Cities Programme.

1.4.3 That authority be granted for the City Manager to sign the MOA with the British High Commission, to be in existence for the period of two (2) years from the date of signing the agreement.

1.4.4 That the establishment of Programme Management Capacity within eThekwini Municipality for the effective implementation of this programme be supported, it being recorded that the necessary technical support and embedded programme management support will be provided by the Future Cities Programme and the British High Commission in South Africa.ADOPTED.


1.5 Request for Approval of Agribusiness Master Plan (20/1/7/5):(Page 94: Economic Development and Planning Committee - Supplementary Agenda 2020-02-06)

Approval of the Agribusiness Master Plan, together with the proposed commodity value chain programmes is being sought in order to unlock the Agribusiness potential and stimulate job creation.

The Masterplan proposes the following key priority value chain programmes:

Piggery; Poultry; Intensive Sheep Farming; and Vegetables and Cannabis.

The Masterplan is a guiding document that aligns the eThekwini agricultural initiatives with current agricultural development approaches nationally and provincially. It helps identify priority agricultural commodity value chains for development, based on feasibility. Also outlines eThekwini’s competitive agricultural commodities such as agro-processing potential that will contribute to job creation; food security and the eradication of poverty; and a 10-year plan focusing on existing and potential smallholder producers, semi-commercial, commercial and any other forms of agribusiness in primary, secondary and tertiary production.

The foregoing objectives of the Masterplan are in line with Plan 2 of the IDP (Developing a prosperous, diverse economy and employment creation), as well as the White Paper on Local Government 1998), which states that local government is responsible for taking active steps to ensure that the overall socio-economic conditions of the locality are conducive to the creation of employment opportunities.

In view of the forgoing,


1.5.1 That the eThekwini Municipality’s Agribusiness Master Plan, which seeks to align eThekwini agricultural initiatives with current agricultural development approaches and identify priority agricultural value chains for development within the eThekwini Metro, be adopted.

1.5.2 That subject to the approval of .1 above, authority be granted for the Head: Business Support, Tourism and Markets to implement the Agribusiness Master Plan.

1.5.3 That the recommended commodity value chains i.e. Piggery, Poultry, Intensive Sheep Farming, Vegetables and Cannabis, be approved.

1.5.4 That subject to .3 above, authority be granted to the City Manager to enter into various partnerships with Commodity Associations, Finance Institutions, Farmers Associations and Agribusiness Chambers for the sole purpose of implementing the Agribusiness Master Plan.

1.5.5 That authority be granted for the Deputy City Manager: Finance to source budget from savings within the eThekwini Municipality in order to effect infrastructure investment into the Agribusiness Master Plan.


1.5.6 That the Head: Business Support, Tourism and Markets provide progress reports on the implementation of the Agribusiness Master Plan.ADOPTED.

1.6 Special Rating Area Finance Agreements (7/2/1):(Page 101: Economic Development and Planning Committee - Supplementary Agenda 2020-02-06)

Authority is being sought for the City Manager to enter into new finance agreements with all existing approved Special Rating Areas. A new finance agreement, which improves on compliance management and addresses various shortcomings identified by the Legal and Compliance Unit in the previous finance agreement, has been prepared for the Glenwood UIP. It is also necessary to replace prior agreementswith all other pre-existing Special Rating Areas with the same, legally sound format, as the Glenwood UIP agreement.

The Special rating areas have been consulted on the terms of the new finance agreement through the Precinct Management association of KZN, and are supportive of the termination of their existing agreements in favour of concluding new agreements, based on the latest version of the Finance Agreement.

Having noted the foregoing, and with the Democratic Alliance abstaining at the Executive Committee level, on the basis that it would, in their opinion, be preferable to await the finalization of the amendments to the Rates Policy prior to entering into new financial agreements,


That authority be granted for the City Manager to terminate existing finance agreements and enter into new agreements with the Special Rating Area Management Companies for:

(i) Burlington UIP(ii) Florida Road UIP(iii) Giba Gorge UIP(iv) Maytime Community Association(v) Perth West UIP(vi) UIP Company(vii) Umhlanga Promenade UIP(viii) Umhlanga Village UIPADOPTED.

1.7 Report on Building Wraps for Declared Bad Buildings (21/13/1/1/R):(Page 104: Economic Development and Planning Committee - Supplementary Agenda 2020-02-06)

Authority is being sought for the Development Planning, Environment and Management Unit to consider signage applications for the erection and display of building wraps i.e. a temporary outdoor advertising sign consisting of vinyl mesh or similar material attached to the outside wall of a building), on declared bad buildings, so declared by the Problem Committee in terms of the Problem Building By-law in the Durban Inner City.


Allowing for third party advertising on building wraps for declared bad buildings will generate income that will assist in payment toward municipal services, critical structural improvements, minor remedial works, and the general upkeep of the building.

The reason for requesting approval is because the Outdoor advertising By-law does not make provisions relating to building wraps, nor does it restrict them.

At the Executive Committee level, with the Democratic Alliance opting to abstain on the matter as the intention of the eThekwini Municipality to utilize the income generated from third-party advertising towards municipal services and critical structural improvements had not been adequately highlighted as a material condition,


1.7.1 That authority be granted for the Head: Development Planning, Environment and Management to receive and process signage applications for the erection and display of building wraps limited to declared bad buildings in the eThekwini Municipality.

1.7.2 That the 50% reduction in the applicable current approved tariff (2019/20), for building wraps on declared bad buildings be approved, it being noted that thereafter, the tariff as approved by Council from time to time will apply.ADOPTED, by the majority vote.

1.8 Draft 2020/2021 Municipal Spatial Development Framework (21/5/1):(Page 108: Economic Development and Planning Committee - Supplementary Agenda 2020-02-06)

The Municipal Spatial Development Framework (MSDF) is a spatial response to the development context, needs and development vision of the Municipality, and is a key land use management tool which informs strategic choices and interventions by serving as a guide for the use, development and planning of land.

Having noted that it is a legislative requirement which should resonate with the National and Provincial Spatial Development Plans, and priorities,


1.8.1 That the draft 2020/2021 Municipal Spatial Development Framework (MSDF), the primary spatial response to the development context, needs and development needs of the eThekwini Municipality, be advertised for public comment.

1.8.2 That the draft 2020/2021 MSDF be referred to the respective Portfolio Committee for presentation to allow members to understand all implications associated therewith prior to approving the Spatial Development Framework in May 2020.

1.8.3 That the comments received during the Public Process be considered and an amended Final Draft 2020/2021 MSDF, be prepared.

1.8.4 That the Final Draft 2020/2021 MSDF, be tabled at the Council Meeting in May 2020 for final adoption.ADOPTED.


1.9 Economic Development & Planning Cluster Adjustments Budget 2019/2020 (7/1/3/2):(Page 136: Economic Development and Planning Committee - Supplementary Agenda 2020-02-06)

Approval is being sought for adjustments to the approved 2019/2020 Medium Term Revenue and expenditure Framework in terms of Section 28 of the Local Government Municipal Finance Management Act No. 56 of 2003, and the Municipal Budget and Report Regulations (Regulation 23).

The primary reasons for seeking such approval are to reallocate budgets between votes to ensure operational efficiencies, adjustments in respect of grant funding allocations to the Municipality, roll-overs from the previous financial year, and re-prioritization of funding from projects that are unable to spend, to projects that can spend in the current financial year.

The adjustment budget is appropriately funded and does not result in a revision of tariffs for the year.

With the Democratic Alliance abstaining at both Portfolio and Executive Committee level,


That in accordance with the provisions of Section 28 of the Municipal Finance Management Act and in compliance with the Municipal Budget and Reporting Regulations, the adjustments to the 2019/20 Capital Budget of the Economic Development and Planning Cluster as reflected in Annexure ‘A’ of the report by the Deputy City Manager: Finance dated 2020-02-03, be noted at this stage, on the basis that the final approval will be made on the submission of the overall adjustment budget report by the Deputy City Manager: Finance.

The above recommendation was deferred to enable same to be considered in conjunction with the Adjustments Budget, in its entirety, at a Special Meeting of the Council on 2020-02-28.

At the Special Meeting of Council on 2020-02-28, the above recommendation of the Executive Committee was, by the majority vote, ADOPTED.

1.10 Establishment of Durban Economic Council (3/2/1 & 20/1/6/1):(Page L60: Economic Development and Planning Committee - Agenda 2020-02-06)

Authority is being sought for the establishment of the Durban Economic Council, a body which will provide strategic advice on economic development and inclusive growth advice and support to the City, and act as a sounding board for the Mayor, Council Leadership and the Economic Development and Planning Cluster, on matters relating to creating an enabling economic environment in the City.

Having considered the purpose, objectives, scope, composition, selection process, criteria and frequency of meetings of the “Durban Economic Council”, as outlined in the report by the City Manager, dated 2020-02-06,



1.10.1 That the establishment of the Durban Economic Council, which will provide strategic advice on economic development and inclusive growth and advice to the City, and act as a sounding board for the Mayor, Council Leadership and the Economic Development Cluster on initiatives relating to the creation of an enabling economic environment in the City, be approved.

1.10.2 That subject to the approval of .1 above, content of the report by the City Manager dated 2020-02-06, relative to the Establishment of the Durban Economic Council, be approved as the “Terms of Reference” of the Durban Economic Council.

1.10.3 That subject to the approval of .1 and .2 above, authority be granted to the City Manager to invite nominations through public advertisement, and from identified stakeholders to serve on the Durban Economic Council.

1.10.4 That the Deputy City Manager: Economic Development and Planning provide a report bi-annual to Council on the work of the Durban Economic Council.ADOPTED.

2. PROMOTION OF ACCESS TO INFORMATION ACT: FEES FOR ACCESSING MUNICIPAL RECORDS: 2020/21 (2/4/1)

(Page 1)


2.1 That the following prescribed fees payable by requesters of access to Municipal records, as determined by the Minister of Justice and Constitutional Development in Government Gazette, Notice No. 23119 dated 15 February 2002, be approved:

2.1.1 That the fee for a copy of the manual; for every photocopy of an A4 size page or part thereof, be approved.

R (excl. VAT) R (Incl. VAT)

0.52 0.60

2.1.2 That the fees for reproduction referred to in Section 15(3) of the Act would be as follows:

R(excl. VAT)

R(Incl. VAT)

a. For every photocopy of an A4 size page or part thereof 0.52 0.60

b. For every printed copy of an A4 size page or part thereof held on a computer or in electronic or machine-readable form

0.35 0.40

c. For a copy in a computer readable form on:

i. stiffy disc 5.22 6.00

ii. compact disc 34.78 40.00

d. Visual Images


R(excl. VAT)

R(Incl. VAT)

i. For a transcription of visual images for an A4 size page or part thereof

19.13 22.00

ii. For a copy of visual images 52.17 60.00

e. Audio Record

i. For a transcription of an audio record for an A4 size page or part thereof

10.44 12.00

ii. For a copy of an audio record 14.78 17.00

2.1.3 That the request fee payable by every requester, other than a personal requester referred to in Section 22(1) of the Act be as follow:

R (excl. VAT) R (Incl. VAT)

30.44 35.00

2.1.4 That the access fees payable by the requester as referred to in Section 22(7) of the Act, unless exempted under Section 22(8) of the Act would be as follows:

R(excl. VAT)

R(Incl. VAT)

a. For every photocopy of an A4 size page or part thereof 0.52 0.60

b. For every printed copy of an A4 size page or part thereof held on a computer or in electronic or machine-readable form

0.35 0.40

c. For a copy in a computer readable form on:

i. stiffy disc 5.22 6.00

ii. compact disc 34.78 40.00

d. Visual Images

i. For a transcription of visual images for an A4 size page or part thereof

19.13 22.00

ii. For a copy of visual images 52.17 60.00

e. Audio Record

i. For a transcription of an audio record for an A4 size page or part thereof

10.44 12.00

ii. For a copy of an audio record 14.78 17.00

f. To search for and prepare the record for disclosure, for every hour or part of an hour, excluding the first hour, reasonably required for such search and preparation.

13.04 15.00

ADOPTED.


3. REPORT BACK ON HIGH LEVEL POLITICAL FORUM AND GENERAL ASSEMBLY ON SUSTAINABLE DEVELOPMENT GOALS : NEW YORK 2019 (32/2/2)

(Page 4)


3.1 That the contribution of eThekwini Municipality to achieving the Sustainable Development Goals (SDGs) be noted, it being recorded that special reference was made to the impact that the eThekwini Municipality is having on the localization of SDGs and the alignment of the SDGs to the IDP.

3.2 That Council supports the nomination of the following officials, Ms B Mphakathi; Dr M Ngubane; and Mr P Akkiah, to serve as SDG Champions within the eThekwini Municipality.

3.3 That the Head: Communications be mandated to develop a dedicated SDG Communications Strategy for the Municipality to deal with education, awareness and advocacy for SDGs.

3.4 That the incorporation of the SDGs into the budget alignment and prioritization process, be noted.

3.5 That the proposal to produce a Voluntary Local Review by the IDP office, be noted and supported.

3.6 That Council notes the call for funding SDG Programmes and mandates the City Manager together with the SDG Champions to develop a Business Plan for SDG Implementation.ADOPTED.

4. FEEDBACK REPORT ON DURBAN KZN INVESTMENT MISSION: LONDON, UK: 09-11 OCTOBER 2019 (20/1/7/1 and 20/1/7/3)

(Page 17)

Members of the Executive Committee indicated that it was critical for members to be provided with reports emanating from the Economic Development Cluster, in particular, reports related to business satisfaction within the City.


4.1 That the October 2019 Durban KZN Investment Mission to London, UK,be noted, as a further successful implementation of the Council’s 2017 Durban Investment Promotion Strategy & Implementation Plan by the Invest Durban Unit, resulting in over R4 Billion Foreign Direct Investment being attracted within the last two (2) years as a direct result of the investment mission.

4.2 That Mayoral support and leadership be provided for a 2020 Durban KZN Investment Mission to the United Kingdom by the City Leadership.


4.3 That authority be granted for the Deputy City Manager: Economic Development and Planning to put together a programme and start engaging with provincial government, local investors and other relevant entities, in preparation for the 2020 Investment Drive in the United Kingdom.ADOPTED, by the majority vote.

2. SECOND REPORT OF THE EXECUTIVE COMMITTEE: MEETING HELD ON TUESDAY, 2020-02-25

_____________

1. REPORT OF GOVERNANCE AND HUMAN RESOURCES COMMITTEE: MEETING HELD ON 2020-02-12

(Page R1)

1.1 Adjustments Budget for Governance and Corporate Human Resources Clusters for 2019/2020 Financial Year (7/1/3/2):(Page 91 & L62: Governance and Human Resources Committee - Agenda 2020-02-12)

The Committee received a presentation on the adjustment budget impacting the Governance & International Relations Cluster as well as the Corporate Human Resources Cluster. During discussion it emanated that some of the Members were not in support of the adjustment budget. Concern was also expressed in that the Corporate Human Resources Cluster adjustment budget was laid on table thus an insufficient time for Members to interrogate the document.

With some of the Members supporting the adjustment budget at the Governance & Human Resources Committee, given that a full presentation has been made to enlighten Members on the content thereof, it was agreed to put the matter to the vote. Accordingly, Councillors (ANC – 12) were in support of the recommendations. The other Members (DA – 8), (EFF – 2) and (AIC – 2) were not in support of the recommendations.

Given that equal votes have been cast, the Chairperson exercised her casting vote,as provided for in the Rules of Order By-Law. Accordingly, the adjustments budget was adopted by the majority.

During consideration of the matter at the Executive Committee level, the Executive Committee Members of the Democratic Alliance (DA) (03) voted against the adjustment budget report. With the Executive Committee Members of the African National Congress (ANC) (06) and the Inkatha Freedom Party (IFP) (01) supporting the matter, by the majority vote,


That in accordance with the provisions of Section 28 of the Municipal Finance Management Act and, in compliance with the Municipal Budget and reporting Regulations, the adjustments to the 2019/2020 Capital Budget of the Governance & International Relations and Corporate Human Resources Clusters as reflectedin Annexure “A” and Operating Budget 2019/2020 in Annexure “B” of the report


by the Deputy City Manager: Finance dated on 2020-02-03, it being recorded that the adjustment budget for the Corporate Human Resources was laid on table, be noted, on the basis that final approval will be given upon the submission of the overall adjustments budget for the Municipality.

The above recommendation was deferred to enable same to be considered in conjunction with the Adjustments Budget, in its entirety, at a Special Meeting of the Council on 2020-02-28.


2. REPORT OF COMMUNITY SERVICES COMMITTEE: MEETING HELD ON 2020-02-13

(Page R3)

2.1 Request for Approval: Re-Prioritisation of 2019/2020 Approved Capital Budget: Health Unit (7/1/2/2) & (30/1/1/1):(Page 50: Community Services Committee - Agenda 2020-02-13)

The Democratic Alliance abstained on the item at the Community Services Committee level.

The Executive Committee deliberated on the matter whereupon the Executive Committee Members of the DA cited that detailed reasons necessitating the reprioritization of funds had not been provided. They were of the view that this was in deviation from the original projects commitments. That the under-expenditure could not be condoned given the lost opportunity to focus on significant upgrade required to improve the conditions of healthcare facilities.

The Committee shared similar sentiments that under-expenditure is a serious concern warranting a special focus Municipal-wide. That Council Portfolio Committees should strengthen their oversight role for an early detection of elements of under-expenditure. However, cognizance was taken of the fact that the savings realized were being utilized for other necessary upgrades in the healthcare facilities. Therefore, the reprioritization of funds was accordingly supported.

The Executive Committee Members of the DA (03) maintained their dissenting vote. With the Executive Committee Members of the ANC (06) and the IFP (01) supporting the matter, by the majority vote,


2.1.1 That authority be granted to the Head: Health to re-adjust the 2019/2020 approved Capital Budget in order to proceed with the implementation and completion of projects that require additional financial assistance and those that were not budgeted for in the 2019/20 financial year; in the amount of R11 220 000.00 (Eleven Million Two Hundred and Twenty Thousand Rand).


2.1.2 That subject to the adoption of .1 above, the budget transfers in the amount of R11 220 000.00 (Eleven Million Two Hundred and Twenty Thousand Rand) from projects reflected in Tables 2, 3 and 4, be supported and included on the Deputy City Manager: Finance’s Adjustment Budget 2019/20.

Table 2 : (Projects that commenced in prior year and require funding to ensure completion )

Project No. Project Description Amount Required Comments

N170AZ1 Savannah Park Clinic R1 000 000.00 Commitment from the prior year

Table 3 : (Projects in the 2019/20 Budget that require additional funds )

Project No. Project Description Amount Required

Comments

N2440 iTshelimnyama Clinic R250 000.00 Provision of R250 000.00 was made but R500 000.00 is anticipated to be spent on professional fees.

Table 4 : (Projects not budgeted for in 2019/20 – To be funded from re-prioritised funds from Unit )

No Description Amount Required

Comments

PROJECTS

1 La Lucia Clinic Fencing & Clare Estate 1 600 000.00 NCS Requirements

2 Shallcross, La Lucia, Adams, Illovu & Hambanathi Extension

1 000 000.00 NCS Requirements

3 Shallcross Removal and Replacement of Fencing 200 000.00 NCS Requirements

4 Isipingo Clinic Fencing 200 000.00 Security Risk & NCS Requirements

5 Bluff Fencing 200 000.00 NCS Requirements

6 Bluff Pedestrian Gate 200 000.00 Security Risk & NCS Requirements

7 Fencing fixed at Merebank Clinic 200 000.00 Security Risk & NCS Requirements

8 Fencing for Mntamuntengwayo Clinic 200 000.00 Security Risk & NCS Requirements

9 Pinetown Intrally Coil Razor Wire 200 000.00 Security Risk & NCS Requirements

10 Shallcross Guard House 200 000.00 NCS Requirements

11 New Germany Ramps and Rail 200 000.00 NCS Requirements

12 Hand Rails & Ramps (North Sub District) 200 000.00 NCS Requirements

13 Hand Rails & Ramps (South Sub District) 200 000.00 NCS Requirements

14 Hand Rails & Ramps (West Sub District) 200 000.00 NCS Requirements

15 Illovu Clinic Paving 200 000.00 Safety

16 Markings for Health Clinics and Environmental 600 000.00 NCS Requirements & Norms & Standards

17 Air Conditioners for Clinic Pharmacies x8 and Environmental

50 000.00 NCS Requirements

18 Directional Signs 400 000.00 NCS Requirements & Norms & Standards

19 Name Signs (both Enviro & Clinical) x16 150 000.00 NCS Requirements & Norms & Standards


No Description Amount Required

Comments

20 Banners x10 30 000.00 NCS Requirements

21 Notice Boards x60 200 000.00 NCS Requirements

22 Guard Room (with toilet & kitchenette for Mpola, Mzamo)


23 Clinic Driveway (Bester) 200 000.00 NCS Requirements

24 Illovu Clinic Gate Replacement 30 000.00 NCS Requirements

25 Trellidor Burglar Gates for Glass Doors for Savannah Park, New Germany, Pinetown, Isipingo, Waterfall, KwaMashu B Clinics)

300 000.00 Security Risk

26 Burglar Guards for Clinic Windows in Pinetown 100 000.00 NCS Requirements

27 Burglar Guards for Umlazi N, Umzamo, Isipingo Clinic & Coffee Farm Health Post, Nazareth Clinic


28 Mzamo Clinic HCRW Storage 200 000.00 NCS Requirements

29 Verulam Clinic HCRW Storage 200 000.00 NCS Requirements

30 CDC Roof Replacement on the side of Pharmacy 200 000.00 NCS Requirements

31 Isipingo Ceiling 200 000.00 NCS Requirements

32 Driveway & Automotive Gate at Waterloo 200 000.00 NCS Requirements

33 Terrance Park Clinic Blinds for Dispensary & TB Park Home


34 Blinds at Illovu Vector Control 10 000.00 NCS Requirements

EQUIPMENT

35 PA Systems & Emergency Warning Siren 500 000.00 NCS Requirements

36 Apple Mac x3 90 000.00 Planned

37 Recorder x2 10 000.00 Planned

38 Flip Charts x10 20 000.00 NCS Requirements

39 Video Camera x1 35 000.00 Planned

40 Film Processing 200 per pack x10 20 000.00 Planned

41 Projector x2 10 000.00 Planned

42 External Hard Drive x6 15 000.00 Planned

43 Level 2 Medication Fridges x60 200 000.00 NCS Requirements

44 Fridge at West 4 Enviro Office 10 000.00 Food Sampling

45 Monitor for Health Promotion DVD for Savannah Park x4

20 000.00 Health Promotions

46 Stone Bridge x3 Safety Signage 10 000.00 NCS Requirements

47 Computers for Various Clinics 50 000.00 NCS Requirements

48 HCRW Trolleys x15 200 000.00 NCS Requirements

TOTAL R9 970 000.00

Financial Implications:Total Amount: R11 220 000.00

ADOPTED.


2.2 Request for Approval: Re-Prioritisation of 2019/2020 Approved Capital Budget: Parks, Recreation and Culture Unit (7/1/2/2):(Page 54: Community Services Committee - Agenda 2020-02-13)

Committee requested that the Parks, Recreation and Culture Unit, in conjunction with the Finance Unit and the Architecture Unit, conducts a presentation to the Committee regarding the process of recovering funds that were initially budgeted for a specific project and subsequently reprioritised to another project or another Ward. It was emphasised that where funding was available, such funds should be utilised for effective service delivery.

The Democratic Alliance and the Economic Freedom Fighters abstained at the Community Services Committee level.

At the Executive Committee level, similar views were shared as that of the preceding item with regard to under-expenditure on the original projects and the reprioritization of funds to cater for other projects. Hence, the Executive Committee Members of the DA (03) maintained their dissenting vote. With the Executive Committee Members of the ANC (06) and the IFP (01) supporting the matter, by the majority vote,


2.2.1 That authority be granted to the Head: Parks, Recreation and Culture to re-adjust the 2019/2020 approved Capital Budget in order to proceed with the implementation and completion of projects that require additional funding in the 2019/2020 financial year in the amount of R137 588 426.00 (One Hundred and Thirty Seven Million Five Hundred and Eighty Eight Thousand Four Hundred and Twenty Six Rand).

2.2.2 That additional authority be granted to the Head: Parks, Recreation and Culture to re-prioritise funds from Urban Settlements Development Grant (USDG) funded projects to proceed with the implementation and completion of projects that require additional funding in the 2019/2020 financial year in the amount of R22 350 000.00 (Twenty Two Million Three Hundred and Fifty Thousand Rand).

2.2.3 That subject to the adoption of .1 and .2 above, the budget transfers in the amount of R159 938 426.00 (One Hundred and Fifty-Nine Million Nine Hundred and Thirty Eight Thousand Four Hundred and Twenty Six Rand), be supported and included on the Deputy City Manager: Finance’s Adjustment Budget 2019/20.

Financial Implications:

Reprioritisation Budget Summary

Existing 2019/20 PRC Capital Projects – Savings Identified R159 938 426.00

Projects commenced in 2018/19 that are Work in Progress (WIP) requiring Capital Budget to ensure completion

R 22 169 000.00

Projects on the 2019/20 Capital Budget that require Additional Funds R 95 282 375.00

Projects on the 2019/20 Capital Budget that require Additional Funds R 22 350 000.00

Prioritised Projects – Not Budgeted for in 2019/20 R 20 137 051.00

TOTAL R159 938 426.00

ADOPTED, by the majority vote.


2.3 Reference Back from Council: Request for Approval: Hosting of the 7 th , 8 th and 9 th Annual Gospel Icon Discovery Competition: 2019/2020, 2020/2021 and 2021/2022 Financial Years (13/3/1):(Page 75: Community Services Committee - Agenda 2020-02-13)

In clarifying the issue of funding for this Gospel Competition, as raised during the Council meeting, the Head: Parks, Recreation and Culture advised that the amount of R4 900 000.00 (Four Million Nine Hundred Thousand) is currently being requested for the hosting of the 7th Annual Gospel Icon Discovery Competition. That the amount is only for one (01) year of the 7 th Gospel Competition, but the hosting of the 8th and 9th Gospel Competition will require new funding approval which will be informed by the annual inflation costs.

The Democratic Alliance voted against the item at the Community Services Committee level.

Upon enquiry at the Executive Committee level on what was regarded as exorbitant costs for the competition, explanation was given that the competition was pitched at a broader scale, whereby Artists across the Municipality were being accommodated. That the Ward-based competition culminates in the Regional competitions for the overall winners. Further, that this represented a developmental programme for the winning Artists since post competition assistance is given to maximise Artists exposure in the industry.

The Executive Committee Members of the DA (03) voted against the matter. With the Executive Committee Members of the ANC (06) and the IFP (01) supporting the matter, by the majority vote,


2.3.1 That authority be granted to the Head: Parks, Recreation and Culture to coordinate and host the seventh (7th) Annual Gospel Icon Discovery Competition, which serves as an open platform and opportunity for the youth of eThekwini to develop their musical skills and to prosper as professional recording Artists through the Arts and Living Culture Section during the 2019/2020 financial year which includes auditions, workshops, rehearsals, the finale and winners’ studio recordings and CD launches.

2.3.2 That subject to the approval of .1 above, authority be granted to the Head: Parks, Recreation and Culture to host the eighth (8th) and ninth (9th) Annual Gospel Icon Discovery Competition during the 2020/2021 and 2021/2022 financial years respectively, subject to budget approval to cover expenditure for auditions, workshops, rehearsals, the finale and winners’ studio recordings and CD launches.

2.3.3 That subject to the approval of .1 and .2 above, authority be granted to the Head: Parks, Recreation and Culture to incur expenditure not exceeding the allocated budget of R4 900 000.00 (Four Million Nine Hundred Thousand Rand) to go towards the cost of audio-visual services, venue hire charges, stage and sound crews and Artists’ prizes in the 2019/2020 financial year for the hosting of the seventh (7th) Annual Gospel Icon Discovery Competition.


2.3.4 That subject to the approval of .1, .2 and .3 above, all procurement of goods and services be undertaken strictly in accordance with the Supply Chain Management Policy and the Municipal Finance Management Act, 2003, Circular 97 regarding Cost Containment Measures.

2.3.5 That a close-out report be prepared upon the completion of the seventh (7 th) Annual Gospel Icon Discovery Competition implemented through the Arts and Living Culture Section during the 2019/2020 financial year.

Financial Implications:Costs are for auditions, workshops, the finale and post production:

Vote No: 26003.Various (Provided 2019/20)FC No: 32/221ADOPTED, by the majority vote.

2.4 Acceptance of Grant Funding from KwaZulu-Natal Department of Public Works for Heating of Croftdene Swimming Pool (31/2/1/3):(Page 85: Community Services Committee - Agenda 2020-02-13)

The Economic Freedom Fighters voted against the item at the Portfolio Committee level. With the Executive Committee being in support thereof,


That authority be granted to the City Manager to sign and accept Grant funding from the KwaZulu-Natal Department of Public Works for the heating of the Croftdene Swimming Pool for the purpose of ensuring that the pool’s condition is suitable for swimming, training and development all year round for the residents of Unit 5 in Chatsworth, including surrounding neighbouring Units and Townships.


Cost Estimate

Preliminary and General 1 R 30 000.00

Capital Equipment R 600 000.00

Piping Installation and Pool Covers R 870 000.00

Total R1 500 000.00

Estimated Amount: R1 500 000.00 (2019/20 financial year)FC No.: 35/465ADOPTED.

2.5 EThekwini Municipality: Scheduled Trades Activities By-Law, 2019 (1/1/3/1/41):(Page 137: Community Services Committee - Agenda 2020-02-13)

Committee requested that that the various By-laws of the City be presented to rural communities for awareness and adherence. It was noted that the implementation of law enforcement of these By-laws was still a concern which needs to be addressed.



2.5.1 That approval be granted for the eThekwini Municipality Scheduled Trades Activities By-Law, 2019 for final publication and promulgation in the Provincial Gazette, with the By-law taking effect six (6) months from the date of publication thereof in the Provincial Gazette or on such earlier date as may be determined by the publication of a commencement notice in the Provincial Gazette.

2.5.2 That subject to the approval of .1 above, approval be granted for the promulgation notice for the eThekwini Municipality Scheduled Trades Activities By-Law, 2019 to be published in the Ezasegagasini Metro newspaper.ADOPTED.

2.6 EThekwini Municipality Air Quality Management By-Law, 2018 (1/1/3/1/R):(Page 168: Community Services Committee – Agenda 2020-02-13)


2.6.1 That approval be granted for the eThekwini Municipality Air Quality Management By-Law, 2019 for final publication and promulgation in the Provincial Gazette, with the By-law taking effect six (6) months from the date of publication thereof in the Provincial Gazette or on such earlier date as may be determined by the publication of a commencement notice in the Provincial Gazette.

2.6.2 That subject to the approval of .1 above, approval be granted for the promulgation notice for the eThekwini Municipality Air Quality Management By-Law, 2019 to be published in the Ezasegagasini Metro newspaper.ADOPTED.

3. REPORT OF HUMAN SETTLEMENT AND INFRASTRUCTURE COMMITTEE: MEETING HELD ON 2020-02-21(Page R10)

3.1 Request for Authority to Transfer Funds to Riverside Road Rising Main Relocation (Ward 034) (Report No. WS 2019/233) (23/2/1/3/3/1):(Page 28: Settlement and Infrastructure Committee - Agenda 2020-02-21)


3.1.1 That approval be granted for the transfer of R100 000.00 (One Hundred Thousand Rand) (Excl. VAT) from Project No. Y8142 - Ntuzuma C Sewer Reticulation to Project No. Y8743 – Riverside Road Rising Main Relocation in the 2019/2020 financial year, in an effort to avoid a potential system failure that could lead to major environmental impact and risk to public health.

3.1.2 That subject approval of 1. above, authority be granted to the Deputy City Manager: Finance to include in his adjustments budget the transfer of R100,000.00 (One Hundred Thousand Rand) (Excl. VAT) from Project No.Y8142 - Ntuzuma C Sewer Reticulation to Project No.Y8743- Riverside Road Main Relocation in the 2019/2020 financial year.

Project No.: Y8743 R100,000 (excl. VAT) To be met by savings from Project No. Y8142 – Ntuzuma C Sewer Reticulation in the 2019/2020 financial year Capital Budget)

FC No: 365/C225ADOPTED.


3.2 Request for Authority to Transfer Funds- Inanda B Sewer Reticulation (Ward 107) and Lansdowne Road Sewage Pump Station (Ward 75) (Report No. WS 2019/232) (23/2/1/3/5/1):(Page 31: Settlement and Infrastructure Committee - Agenda 2020-02-21)


3.2.1 That approval be granted for the transfer of R400 000 (Four Hundred Thousand Rand) (Excl. VAT) from Project No. Y8142 – Ntuzuma C Sewer Reticulation to Project No. Y8783 – Inanda B Sinamuva Drive Sewer Reticulation in the 2019/2020 financial year.

3.2.2 That approval be granted for the transfer of R400 000 (Four Hundred Thousand Rand) (Excl. VAT) from Project No. Y8142 – Ntuzuma C Sewer Reticulation to project No. Y6652 – Lansdowne Road Sewage Pump Station Replacement.

3.2.3 That subject to .1 and .2 above, authority be granted to the Deputy City Manager: Finance to include in his adjustments budget report the transfer of R800,000.00 (Eight Hundred Thousand Rand) (Excl. VAT) from Project No.Y8142-Ntuzuma C Sewer Reticulation to Project No.Y8783 - Inanda B Sewer Reticulation and Project Y6652 Lansdowne Road Sewage Pump Station Replacement, an amount of R400 000.00 (Four Hundred Thousand Rand) each in the 2019/2020 financial year.

Project No.: Y8783 R400 000 (Excl. VAT) – 2019/2020Project No.: Y6652 R400 000 (Excl. VAT) – 2019/2020 (To be met by savings from Project No. Y8142 – Ntuzuma C Sewer Reticulation in the 2019/2020 financial Years)

FC: 365/C223ADOPTED.

3.3 Request for Approval of Block Sum Reallocation Within Water Capital Budget, 2019/2020 Financial Year (23/1/11/6/1):(Page 38: Settlement and Infrastructure Committee - Agenda 2020-02-21)


3.3.1 That the transfer of the Block sum indicated in the table below to Project X7778, be approved, it being recorded that this will ensure continuity of the project and result in the reduction of non-revenue water.

3.3.2 That subject approval of .1 above, authority be granted to the Deputy City Manager: Finance to include in his adjustments budget report the transfer of funds from the Capital Block Sums to the project as reflected in the report of the Head: Water and Sanitation No. WS 2019/195 dated 26 November 2019.

Project Name Project No. To be transferred from Amount

Installation of bulk meters to informal settlements within eThekwini Municipality Area of supply

X7778To be met by vote Transfer 2019/2020 to 2021/2022(Project X3289)

R25 600 000.00

TOTAL R25 600 000.00

Project No: X7778 R25 600 000.00 FC No. 364/C208ADOPTED.


3.4 Grant Funding of Mini-Hydropower at Umhlanga Reservoir 2 Pilot Project (23/1/11/3/1):(Page 45: Settlement and Infrastructure Committee - Agenda 2020-02-21)


3.4.1 That authority be granted to the Acting Deputy City: Trading Services to accept the grant funded mini-hydropower pilot project at Umhlanga 2 Res, as awarded by the French Ministry to the amount of € 620 000.00 (Six Hundred and Twenty Thousand Euros) and a further R320 000.00 (Three Hundred and Twenty Thousand Rand) to be funded from the Development Bank of South Africa or the French Development Agency to cover the civil works cost required to install the technology on site.

3.4.2 That subject to the approval of .1 above, authority be granted for eThekwini Water and Sanitation to conduct a pilot project in collaboration with the French Ministry’s implementing agent Alterelec.

3.4.3 That subject to the approval of .1 and .2 above, authority be granted to the City Manager to enter into a Memorandum of Understanding to carry out this pilot and that the Memorandum of Understanding be subjected to review by the Legal Department to ensure that there are no financial and Supply Chain Management implications to Council.ADOPTED.

3.5 Construction of Sidewalks Along Saunders Circle, Scidian Street, Saxon Street and Watsonia Drive in Tongaat (Ward 61) (25/4/10/1/1):(Page 48: Settlement and Infrastructure Committee - Agenda 2020-02-21)


3.5.1 That the savings of R600 000.00 (Six Hundred Thousand Rand) (Excl. VAT), as identified on P10205A be utilised to fund project No. P14154: Construction of Sidewalks along Saunders Circle, Scindian Street, Saxon Street and Watsonia Drive in Tongaat, Ward 61, in the 2019/2020 financial year.

3.5.2 That the savings of R600 000.00 (Six Hundred Thousand Rand) will be regularised via the Mid-year Adjustment Budget for 2019/2020 financial year.ADOPTED.

3.6 Construction of Sidewalks on Mpangele Road in Ntuzuma (Ward 38) (25/4/10/1/1):(Page 50: Settlement and Infrastructure Committee - Agenda 2020-02-21)


3.6.1 That the savings of R1 000 000.00 (One Million Rand (Excl. VAT) identified on P10205A, be utilized to fund P10196: Construction of Sidewalks along Mpangele Road in Ntuzuma, Ward 38, for 2019/2020 financial year.

3.6.2 That the savings of R1 000 000.00 (One Million Rand) will be regularized via the Midyear Adjustment Budget (2019/2020).ADOPTED.

3.7 Request for Capital Funding for the Replacement of CSW Fleet (7/1/2/2 & 8/3/1/3):


(Page 52: Settlement and Infrastructure Committee - Agenda 2020-02-21)

The Committee was advised that the purpose of the report was to seek Council approval for the commitment of sufficient funds, over the next three to four financial years, on the capital budget to bring the Cleansing and Solid Waste heavy plant and vehicle fleets back to parity which will therefore critical support the Unit to provide an adequate service to the residents of eThekwini Municipality.


3.7.1 That authority be granted to the Acting Deputy City Manager: Trading Services to commit additional funds in the amount of R487 000 000.00 (Four Hundred and Eighty-Seven Million Rand) over and above the amount of the currently approved budget for the replacement of vehicles and heavy plant in the CSW fleet over the next four financial years (2020/2021, 2021/2022, 2022/2023 and 2023/2024).

3.7.2 That subject to .1 above, authority be granted to the Deputy City Manager: Finance to include in the adjustment budget and future budget the shortfalls experienced by Cleansing & Solid Waste in the amounts shown below:-

YEAR CURRENT AMOUNT ADDITIONAL AMOUNT REQUIRED

NEW TOTAL

2020/2021 R28,1m R159m R187m

2021/2022 (draft budget) R44,9m R128m R173m

2022/2023 Not yet approved R105m R105m

2023/2024 Not yet approved R95m R95m

ADOPTED.

3.8 Signing of Memorandum of Agreement to Facilitate eThekwini Municipality’s Participation in the Global ‘Future Cities Programme’ of the United Kingdom Prosperity Fund (UKPF) (7/4/1 & 20/1/7/1):(Page 79: Settlement and Infrastructure Committee - Agenda 2020-02-21)


3.8.1 That the eThekwini Municipality’s participation in the Global Future Cities Programme of the United Kingdom Prosperity Fund, a UK Government initiative to support sustainable and inclusive economic growth leading to poverty reduction in middle-income developing countries while creating new opportunities for internal business, be supported.

3.8.2 That the eThekwini Municipality enter into a Memorandum of Agreement (MOA) with the British High Commission in South Africa.

3.8.3 That authority be granted to the City Manager to sign the MOA with the British High Commission in South Africa on behalf of the eThekwini Municipality, it being recorded that the MOA will be valid for two years from the date of signing the agreement.


3.8.4 That the establishment of Programme Management capacity within eThekwini Municipality for the effective implementation of this programme, be supported, it being recorded that technical support and embedded programme management support will be provided by the UKPF’s Future Cities Programme.ADOPTED.

3.9 Proposed Sale of Road Area Described as Proposed Portion [A] of Erf 3935 Cato Manor, Located Off Harry Gwala Road by Private Treaty to Mediterranean Shipping Company Depots Pty Ltd and Acquisition by Donation of Erf 3923 Cato Manor for Road Turning Circle (17/2/1/2/3):(Page 96: Settlement and Infrastructure Committee - Agenda 2020-02-21)

An inspection in-loco was conducted by the Human Settlements & Infrastructure Committee on the land in question. The matter was thereafter supported.

At the Executive Committee level, the Members of the DA (03) voted against the matter. With the Executive Committee Members of the ANC (06) and the IFP (01) being in support, by the majority vote,


3.9.1 That the Municipality declares in terms of Section 14(2)(a) and (b) of the Municipal Finance Management Act No. 56 of 2003 read with Regulation 7 of the Municipal Asset Transfer Regulations that:

(a) The property described as proposed portion [A] of Erf 3935 is not needed to provide the minimum level of basic Municipal services; and

(b) The fair market value of the property is currently assessed at R3 700 000.00 (Three Million Seven Hundred Thousand Rand) exclusive of VAT.

3.9.2 That the property described as Proposed Portion [A] of Erf 3935 Cato Manor Registration Division FT, Province of KwaZulu Natal, in extent approximately 2 530m2, consisting of a road turning circle, as depicted on Plan Number SH9942, be sold in freehold by private treaty to Mediterranean Shipping Company Depots (Pty) Ltd at a purchase price of R3 700 000.00 (Three Million Seven Hundred Thousand Rand), exclusive of VAT.

3.9.3 That Erf 3923 Cato Manor, in extent 1023m², currently assessed at R1 534 500.00 (One Million Five Hundred and Thirty-Four Thousand Five Hundred Rand), as depicted on Plan SH 9942 is to be acquired by donation from the purchaser for a road turning circle, that the design and construction of the turning circle shall be to the satisfaction of the Head: eThekwini Transport Authority.

3.9.4 That in terms of Section 28(2) (e) & (f) of the eThekwini Planning and Land Use Management By-laws 2017, Proposed Portion [A] of Erf 3935 Cato Manor, the road area, in extent approximately 2530 m² depicted on Plan SH9942 be permanently closed subject to all costs in connection therewith being borne by Mediterranean Shipping Company Depots (Pty) Ltd.


3.9.5 That proposed Portion [A] of Erf 3935 Cato Manor be rezoned from new street purposes to General Commercial 2 purposes, the rezoning shall be undertaken by and at the cost of the Purchaser within three months from date of finalization of Council Resolution and should be completed within a two (02) year period, failing which a duly motivated application for an extension of time will need to be submittedto the Head: Real Estate.

3.9.6 That should the rezoning of Proposed Portion [A] of Erf 3935 Cato Manor be unsuccessful, the sale shall become null and void.

3.9.7 That proposed Portion [A] of Erf 3935 Cato Manor requires to be consolidated with the Purchaser’s adjoining properties (i.e. Erven 3924 to 3932 Cato Manor).

3.9.8 That in the event of objections being lodged to the proposed sale of Proposed Portion [A] of Erf 3935 Cato Manor, the matter be referred to the MEC for Co-Operative Governance and Traditional Affairs for consent.

3.9.9 That a Traffic Impact Assessment (TIA) report be submitted prior to development, with the Purchaser’s appointed traffic engineer to engage with eThekwini Traffic Authority Department prior to compiling the TIA report.

3.9.10 That costs associated with Road closure, Traffic Impact Assessment and construction of a road turning circle be borne by the Purchaser.

3.9.11 That any electrical plant that may be required to supply electricity to the proposed development be provided by the Purchaser.

3.9.12 That in the event of a Telkom plant existing within the land to be sold, the Purchaser be advised to liaise directly with the Senior Manager, Network Infrastructure Services, Telkom: SA Ltd to ascertain the position and requirements for relocation where necessary, costs associated therewith being borne by the Purchaser.

3.9.13 That all existing and re-routed Municipal Services over Erf 3923, Erven 3924 – 3932 and Proposed Portion [A] of Erf 3935 be covered by Servitudes in favour of the Seller, either in the Deed of Transfer or registered by Notarial Deed, in which event, the Purchaser shall bear all the costs thereof, including the preparation of the Servitude Diagrams (if required) and any survey in connection therewith.

3.9.14 That the Seller or its authorized officials shall have unrestricted access to the servitude area at all times.

3.9.15 That the existing ground levels over the servitude area shall not be treated in any way nor shall buildings or structures be erected over or in close proximity to the servitude area, other than what has already been altered and constructed without the Purchaser first having obtained the prior written approval of the Head: Water and Sanitation/Head: Engineering Services.

3.9.16 That any damage caused to existing services or any future service to be laid within the servitude area, as a result of any action attributable to the Purchasers or to his agents shall be rectified by the Municipality at the Purchaser’s full cost.

3.9.17 That subject to the adoption of .1 – .16 above, authority be granted to the Head: Real Estate to sign all documents necessary to conclude this transaction.ADOPTED, by the majority vote.


3.10 Option Analysis on Property and Authorization to Conduct Public Participation for Long-Term Lease of Erf 10306 Durban in Terms of Regulations 35 and 34(2) of the Municipal Assets Transfer Regulations (2008) (17/2/1/2/5 & 17/2/2/2/1):(Page 115: Settlement and Infrastructure Committee - Agenda 2020-02-21)


3.10.1 That the Municipality declares in terms of Section 14(2) (a) and (b) of the Municipal Finance Management Act 56 of 2003, read with Regulation 7 of the Municipal Asset Transfer Regulations, that:

(a) The property described as Proposed Portion [A] of Erf 78 Cato Manor is not needed to provide the minimum level of basic Municipal services; and

(b) The current market value of the property, the community and the economic values to be received have been considered.

3.10.2 That the land described as Proposed Portion [A] of Erf 78 Cato Manor Registration Division FT in the Province of KwaZulu-Natal in extent 6446 m² depicted on Plan Number SJ 4650/5 and diagram SG 1755/1976, be sold in freehold by public tender, at an upset price of R2 200 000.00 (Two million Two Hundred Thousand Rand), such price reflecting the current market value of the property as assessed by the Registered Valuer.

3.10.3 That Traffic Impact Assessment, a construction Environment Management Plan and Storm Water Management Plan be submitted prior to development.

3.10.4 That Surveyors be instructed to finalise the subdivision of Proposed Portion [A] of Erf 78 Cato Manor subject to all costs in connection therewith being borneby the Purchaser.

3.10.5 That an existing water main traverses this property, therefore a servitude must be registered in favour of eThekwini Municipality and no development should take place within this servitude area.

3.10.6 That any damage caused to existing services or any future service to be laid within the servitude area, as a result of any action attributable to the Purchasers or to its agents shall be rectified by the Municipality at the Purchaser’s full cost.

3.10.7 That the Seller or its authorized officials shall have unrestricted access to the servitude area at all times.

3.10.8 That Proposed Portion [A] of Erf 78 Cato Manor is registered in the name of Development & Housing Board but vests in the ownership of eThekwini Municipality and a vesting transfer is to be registered prior to transfer to the Purchaser.

3.10.9 That no telecommunication infrastructure owned by Telkom SA SOC Ltd is affected, and approval of the proposed is valid for six months, hence, if construction has not yet commenced within this time period, the Purchaser is advised to liaise directly with the Senior Manager, Network Infrastructure Services, Telkom: SA Ltd prior to undertaking development.


3.10.10 That development is subject to favourable Geotechnical Report and strictest control by Building Inspector during construction.

3.10.11 That subject to the adoption of recommendations .1 to .10 above, authority be granted to the Head: Real Estate to sign all documents necessary to conclude the transaction.Recommendations REFERRED BACK to Human Settlements and Infrastructure Committee in order to rectify same.

3.11 Request for Authority to Enter into Service Level Agreement with Community Organization Resource Centre (22/6/4/1):(Page 159: Settlement and Infrastructure Committee - Agenda 2020-02-21)


3.11.1 That authority be granted to the Head: Human Settlements to negotiate a Service Level Agreement to formalise joint initiative between eThekwini Municipality and Community Resource Centre to improve Municipal’s understanding and knowledge of living conditions and vulnerable in informal settlements as this will enable more targeted informal settlements upgrade interventions.

3.11.2 That, subject to the approval of .1 above, authority be granted to the City Manager to enter into a Service Level Agreement once the document has been vetted by Legal and Compliance Services.

3.11.3 That the budget provision be made over the next three financial years, 2019/20; 2020/2021 and 2021/2022.ADOPTED.

3.12 Catalytic Project: King Edward Residential & Urban Renewal Precinct (Erf 8449 on Rem of Erf 1 Durban) (20/1/5/3):(Page 306: Settlement and Infrastructure Committee - Agenda 2020-02-21)


3.12.1 That the decision taken by Council at its meeting held on 19 June 2018 relating to Development of King Edward Residential and Urban Renewal Precinct on Erf 8449 on Rem of Erf 1 Durban, be rescinded.

3.12.2 That an in-principle approval be given to grant rights to use control or manage capital asset on Erf 8449 on Rem of Erf 1, in terms of Regulation 36 of the Municipal Asset Transfer Regulations for the long-term lease of 45 years to a Developer or a consortium of Developers in line with the Municipality’s transformation policies.

3.12.3 That the Accounting Officer be requested to conduct a public participation process regarding the proposed granting of rights.ADOPTED.


3.13 Proposed Sale of Property: Proposed Portion [A] of Erf 78 Cato Manor, in the Freehold, by Tender (17/2/1/2/3):(Page 375: Settlement and Infrastructure Committee - Agenda 2020-02-21)

An in-loco inspection of the land in question was conducted by the Human Settlements & Infrastructure Committee. Thereafter, the matter was supported, with the Members of the Economic Freedom Fighters abstaining thereon.

At the Executive Committee level, the Members of the DA (03) voted against the matter. With the Executive Committee Members of the ANC (06) and the IFP (01) being in support, by the majority vote,


3.13.1 That the Municipality declares in terms of Section 14 (2) (a) and (b) of the Municipal Finance Management Act 56 of 2003, read with Regulation 7 of the Municipal Asset Transfer Regulations, that:

(a) The property described as proposed Portion [A] of Erf 78 Cato Manor is not needed to provide the minimum level of basic Municipal services; and

(b) The current market value of the property, the community and the economic values to be received have been considered.

3.13.2 That the land described as proposed portion [A] of Erf 78 Cato Manor Registration Division FT in the Province of KwaZulu Natal in extent 6446 m² depicted on Plan Number SJ 4650/5 and diagram SG 1755/1976, be sold in freehold by public tender, at an upset price of R2 200 000.00 (Two million Two Hundred Thousand Rand), such price reflecting the current market value of the property as assessed by the Registered Valuer.

3.13.3 That Traffic Impact Assessment, a construction Environment Management Plan and Storm Water Management Plan be submitted prior to development.

3.13.4 That survey be instructed to finalise the subdivision of Proposed Portion [A] of Erf 78 Cato Manor subject to all costs in connection therewith being borne by the Purchaser.

3.13.5 That an existing water main traverses this property, therefore a servitude must be registered in favour of eThekwini Municipality and no development should take place within this servitude area.

3.13.6 That any damage caused to existing services or any future service to be laid within the servitude area, as a result of any action attributable to the Purchaser or to its agents shall be rectified by the Municipality at the Purchaser’s full cost.

3.13.7 That the seller or its authorized officials shall have unrestricted access to the servitude area at all times.

3.13.8 That the proposed Portion [A] of Erf 78 Cato Manor is registered in the name of Development & Housing Board but vests in the ownership of eThekwini Municipality and vesting transfer is to be registered prior to transfer to the purchaser.


3.13.9 That no telecommunication infrastructure owned by Telkom SA SOC Ltd is affected, and approval of the proposed is valid for six months, hence, if construction has not yet commenced within this time period, the Purchaser be advised to liaise directly with the Senior Manager: Network Infrastructure Services, Telkom: SA Ltd priorto undertaking development.

3.13.10 That development is subject to favourable Geotechnical Report and strictest control by Building Inspector during construction.

3.13.11 That subject to the adoption of .1 to .8 above, the Head: Real Estate be authorized to sign all documents necessary to conclude the transaction.ADOPTED.

3.14 EThekwini Water and Sanitation Unit Infrastructure Asset Management Maintenance Policy and Plans WS 2019/221 (23/1/P):(Page 392: Settlement and Infrastructure Committee - Agenda 2020-02-21)


That the eThekwini Water and Sanitation Unit Infrastructure Asset Management Maintenance Policy and Plans as contained in the report of the Head Water and Sanitation dated 2019-11-08, be approved.ADOPTED.

3.15 Capital Adjustments Budget - 2019/20 (7/1/2/2):(Page L64: Settlement and Infrastructure Committee - Agenda 2020-02-21)

In motivating the proposal, the Head: City Fleet advised that the reprioritization of funds was to meet the changes undertaken in various project implementation plans as well as the backlog in vehicle replacement program with a view to accelerating service delivery.


3.15.1 That in accordance with the provisions of Section 28 of the Municipal Finance Management Act and in compliance with the Municipal Budget and Reporting Regulations, the adjustments to the 2019/20 Capital Budgets of the City Fleet Unit as detailed in the report by 2020-02-20 dated, be approved.

3.15.2 That the adjustment of R84 899 000.00 (Eighty Four Million Eight Hundred and Ninety Nine Thousand Rand) on the 2019/2020 Capital Budget of the City Fleet Unit, comprising R38 399 000.00 (Thirty Eight Million Three Hundred and Ninety Nine Thousand Rand) for the Springfield Vehicle and Plants and R46 500 000.00 (Forty Six Million Five Hundred Thousand Rand) for the Vehicle Replacement Programme, be approved.

The above recommendations were deferred to enable same to be considered in conjunction with the Adjustments Budget, in its entirety, at a Special Meeting of the Council on 2020-02-28.



4. REPORT OF FINANCE, SECURITY & EMERGENCY SERVICES COMMITTEE : MEETING HELD ON 2020-02-21

(Page R18)

4.1 Annual Report 2018/2019:(Page 12: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)

The Committee deliberated on the Annual Report, as per the Council decision that the Annual Report be interrogated at Committee level. The following submission was made in respect of the Annual Report:

(i) The Medium-Term Expenditure Framework (MTEF) cash flow for the Northern and Western Aqueducts to be provided, as well as the costs and reasons of delays. The respective department to provide the measures it takes to ensure there is quality assurance of the infrastructure installed.

(ii) A report to be provided on what is being done to address the problem of unread meters for water and electricity. This challenge must be addressed as a matter of urgency as the number of unread water and electricity metersis on the increase. In addition, the over-billing of water and electricity to consumers is to be explained.

(iii) With respect to material water and electricity losses, a breakdown of costs for aging infrastructure and theft must be provided.

(iv) A report to be submitted on the impact and cost to the City due to damage caused from ESKOM’s load shedding. How has this impacted on the human resource capacity of the Department of Electricity.

(v) An accurate figure of the number of officials involved in the plundering of the electricity network, and the consequence management carried out be provided.

(vi) A status report on the provision of Safe Open Spaces and shelters for the Homeless to be provided.

Accordingly,


That, as per the decision of Council to refer the Annual Report for deliberation at the Committee level, the Executive Committee notes the work undertaken by the Finance, Security and Emergency Services Committee to follow up on the matters of concern arising from the Annual Report for the 2018/19 financial year, on the basis that such matters will be deliberated further at the Committee level with a view to improving operational efficiency within the Municipality.ADOPTED.


4.2 Budget Statement Report for the Month Ended 30 November 2019 (7/1/4):(Page 51: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)


That the Budget Statement Report for the month ended 2019-11-30, submitted by the City Manager as per his report dated 2019-12-30, in compliance with Section 71 of the Municipal Finance Management Act 56 of 2003 and Section 28 of the Municipal Budget and Reporting Regulations, in terms of Government Notice 32141 dated 17 April 2009, relating to the “Local Government: Municipal Finance Management Act 2003, be noted.NOTED.

4.3 Budget Statement Report for the Month Ended 31 December 2019: (Page 790: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)


That the Budget Statement Report for the month ended 2019-12-31, submitted by the City Manager as per his report dated 2019-12-30, in compliance with Section 71 of the Municipal Finance Management Act 56 of 2003 and Section 28 of the Municipal Budget and Reporting Regulations, in terms of Government Notice 32141 dated 17 April 2009, relating to the “Local Government: Municipal Finance Management Act 2003, be noted, subject to the following comments:

(i) For Catalytic projects, the Rates Policy to consider rates rebates for upgrade of buildings as is the case with new buildings, i.e. brown fields buildings. This matter is to be deliberated on at the Finance Workshop in March.

(ii) The wording for Durban Film City does not capture the severity of the problems related to this project.

(iii) The Cruise terminal needs to be included as a catalytic project and there needs to be regular reports even though it is a national competence.

(iv) The Committee expressed its concern for the low Capex spend, progress in spending USDG and the Top 200 projects. A monthly cash flow analysis is to be provided for the remainder of the financial year to ensure 100% capex spend. Information to be provided on how the departments are going to address this challenge of low expenditure. The Committee expressed its concern about fiscal dumping at the end of the financial year. The reports to be provided to the Committee to reflect the percentage of maintenance spend per department because, for example, there is projected under-expenditure by the Department of Water yet there are water leaks across the City.

(v) Treasury to provide a progress on the cutting off services to those Departments and Entities who are in debt and explain the legal process referred to with respect to the top debtors. This detailed report is to address the steps taken with respect to each Department and/or Entity reflected in the budget report.

(vi) A report must be submitted to the Committee by all departments on the number of tenders that include PPPFA criteria, and reasons why not all tenders include the criteria of this Act.

NOTED.


4.4 Authority to Renew Memorandum of Understanding and Subscription Agreement Between South African Bureau of Standards (SABS) and eThekwini Municipality (20/1/7/1):(Page 211: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)


4.4.1 That authority be granted for the City Manager to sign a new Memorandum of Understanding (MOU) to be entered into between eThekwini Municipality and South African Bureau of Standards (SABS) to continue with the focus on Small, Medium and Micro enterprise development, training and support as means to build a culture of product accreditation and certification for all locally manufactured goods, it being also recorded that the strategic relationship with SABS will ensure that material used for local government projects is tested and adhere to industry standards and eliminate inferior products.

4.4.2 That an annual subscription fee estimated at R84 841.83 (Eighty Four Thousand Eight Hundred and Forty One Rand and Eighty Three Cents), including VAT, be paid to SABS for the 2019/20 financial year, as per quotation attached in the report of the City Manager dated 2019-12-08, it being recorded that annual increase will be effected accordingly for the ensuing years.ADOPTED.

4.5 Amendment to Part D: Administrative Delegations (2/2/3):(Page 276: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)

The Committee noted that there were too many signatures required for the approval process, as a result, this may lead to massive delays. It was therefore requested that Legal and Compliance Services Unit submits a report on how this administrative shortfall can be addressed. That administrative rules need to be established to give time frames for each signature. A concern was raised with regards to Town Planning proposals, that real time frames for town planning approval must be imposed as well as measures to monitor the time frames.

Accordingly,


That the proposed amendments to Part D of the Administration Delegations: Section 226, 227 and 227a, as reflected in detail in Annexure A of the report of the City Manager dated 2020-01-24, and dealing mainly with the delegation of powers to sign contracts, whereby the power to sign contracts above R200 000.00 (Two Hundred Thousand Rand), but not exceeding R10 Million, currently vesting to the Head: Supply Chain Management and Accounting Officer, will now be delegated to Deputy City Managers; Heads of Units and Deputy Heads, subject to limitations, to enable a more efficient and effective process of signing contracts and promote better accountability.ADOPTED.


4.6 Quarterly Report on Withdrawals from Municipal Bank Account in Terms of the Municipal Finance Management Act:(Page 311: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)


4.6.1 That the report on withdrawals from the Municipal bank account as at 31 December 2019, submitted in terms of Section 11(4) of the Municipal Finance Management Act, be noted, it being recorded that the withdrawals relate to the following:

● Section 11 (f): To refund money incorrectly paid into a bank account.● Section 11 (g):To refund guarantees, sureties and security deposits.● Section 11(h): Investment of money not immediately required.

4.6.2 That Council notes that the report on withdrawals will also be submitted to the Provincial and the National Treasury as well as the Auditor-General, in line with the statutory requirement.NOTED.

4.7 Public Tender Awards Inclusive of the Section 36 Awards of eThekwini Municipality for the Month of September 2019 (9/1/3):(Page 313: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)


4.7.1 That the public tender awards by the City for the month of September 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 2019-12-20, be noted.

4.7.2 That it be noted that where 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 the Units.

4.7.3 That the Finance, Security and Emergency Services Committee calls for additional information on individual awards, where it deems appropriate and necessary to play its oversight role.

4.7.4 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 Supply Chain Management Policies and Municipal Finance Management Act provisions are observed.

4.7.5 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 4.7.1 and 4.7.2 NOTED and Recommendations 4.7.3, 4.7.4 and 4.7.5 ADOPTED.


4.8 Public Tender Awards Inclusive of the Section 36 Awards of eThekwini Municipality for the Month of October 2019 (9/1/3):(Page 337: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)


4.8.1 That the public tender awards by the City for the month of October 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 2019-12-20, be noted.



4.8.4 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 Supply Chain Management Policies and Municipal Finance Management Act provisions are observed.


4.9 Public Tender Awards Inclusive of the Section 36 Awards of eThekwini Municipality for the Month of November 2019 (9/1/3):(Page 375: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)


4.9.1 That the public tender awards by the City for the month of November 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 2020-01-24, be noted.



4.9.4 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.


4.10 Report on Investments for November 2019 (7/11/4):(Page 402: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)


That the report on investments for eThekwini Municipality as at 2019-11-30, which records the total funds invested at financial institutions as R5 139 Million at an average of return on investment of 7,74%, as submitted by the City Manager, in line with the requirements of the Municipal Cash Management and Investment Regulation of the Municipal Finance Management Act, 2003, be noted.NOTED.

4.11 Report on Investments for December 2019 (7/11/4):(Page 408: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)


That the report on investments for eThekwini Municipality as at 2019-12-20, which records the total funds invested at financial institutions as R5 350 Million at an average of return on investment of 7,61%, as submitted by the City Manager, in line with the requirements of the Municipal Cash Management and Investment Regulation of the Municipal Finance Management Act, 2003, be noted.NOTED.

4.12 Durban Pension Fund Rule Amendments (4/12/R):(Page 414: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)


That the Amendment Rule No. 10 attached herein, be approved, it being noted that the trustees of Durban Pension Fund unanimously approved same on the 2019-11-07.ADOPTED.

4.13 Disaster Grants Received from Declared Disasters (7/4/2 & 29/2/2/2):(Page 575: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)

The Committee to further interrogate the issue of low expenditure of the disaster fund. Hence, relevant departments would be required to make submissions at the next Committee meeting.


On this basis,


That the Executive Committee notes the disaster management grants received arising from the October 2017 storm and the April 2019 heavy rain, as well as the expenditure to date, as detailed in the table below.

October 2017 Grant and Expenditure:

DEPARTMENT GRANT RECEIVED SPENT TO DATE

Human Settlement R 45 133 000.00 R 7 700 000.00

Parks, Recreation and Culture R 17 684 000.00 R 2 945 104.61

Engineering R 62 079 000.00 R62 079 000.00

TOTAL SPENT R124 896 000.00 R72 724 104.61

April 2019 Grant and Expenditure:

DEPARTMENT ESTIMATED COST ACTUAL SPENT AS OF 30 OCTOBER 2019

Road & Stormwater Maintenance R96 468 340.00 R15 500 000.00 Council funds

Coastal & Stormwater Catchment R254 000 000.00 R8 890 000.00 Council funds

Electricity R19 530 000.00 R19 530 000.00 Council funds

Health Unit R3 000 000.00 Architecture/ Insurance

Parks, Recreation and Culture R1 800 000.00 Architecture/ Insurance

Water & Sanitation R60 000 000.00 R3 875 817.01 Council funds

Metro Police R3 158 000.00 Architecture/ Insurance

Human Settlements R663 308 400.00 KZN DoHS Emergency Grant

TOTAL R1 101 264 740.00

ADOPTED.4.14 Reprioritization of Metro Police Capital Budget (7/1/2/2):

(Page 723: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)

The Committee deliberated on the intention to utilise funds which were earmarked for other projects to focus on more pressing needs for the Metro Unit. During consideration, it was agreed that a detailed report be submitted to the Committee on other key project, such as the relocation of the Metro Horse Unit.

Accordingly, with regard to the reprioritization of funds,


That authority be granted to the Acting Deputy City Manager: Community & Emergency Services to re-allocated funds as contained in Annexure A attached herein with a view to assisting the Metro Police Unit with the necessary resources required to improve service delivery.ADOPTED.


4.15 Adjustment Budget for Security and Emergency Services Units and Municipal-Wide Adjustment Budget (7/1/4):(Page 768: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)

The Committee noted that Finance could not fund the Metro Police and Security Management Units full overtime over-expenditure. However, it was reported that Finance will identify savings in the latter part of the financial year. That a shift system is to be investigated for the Metro Police Unit.

At the Executive Committee level, the recommendations pertaining to Municipal-wide adjustments were included as having been erroneously omitted.

With the amendment being agreed to,


4.15.1 That adjustments budget for the Security & Emergency Services Units, submitted in compliance with Section 71 of the Municipal Finance Management Act 56 of 2003, and in terms of Government Notice 32141 dated 17 April 2009, relating to the “Local Government: Municipal Finance Management Act 2003, be noted, on the basis that the overall adjustment report would be submitted for approval.

4.15.2 That the adjustment budget for the 19/20 MTREF be noted on the basis that capital budget is fully funded, however, the operating budget is not fully funded, hence, additional funding will be sought from anticipated additional rates income to fund Expanded Public Works Programme (EPWP); overtime; and security costs.

4.15.3 That concern be noted on forecasted decrease in revenue from trading services and impact on the City Finances.

4.15.4 That the respective Council Portfolio Committees need to substantiate the respective virements in the respective Portfolio Committees.

The above recommendations were deferred to enable same to be considered in conjunction with the Adjustments Budget, in its entirety, at a Special Meeting of the Council on 2020-02-28.

At the Special Meeting of Council on 2020-02-28, the above recommendations of the Executive Committee were, by the majority vote, ADOPTED.

4.16 Unauthorized, Irregular, Fruitless and Wasteful Expenditure Incurred for Quarter Ended 31 December 2019 (7/7/R):(Page 1024: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)

At the Executive Committee level, recommendation 4.16.2 and 4.16.3 were added as having been erroneously omitted. This was agreed to,

With the Executive Committee Member of the IFP (01) abstaining, by the majority support,



4.16.1 That the Executive Committee notes the Unauthorized, Irregular, Fruitless and Wasteful Expenditure incurred totaling R74 577 022.38 (Seventy Four Million Five Hundred and Seventy Seven Thousand and Twenty Two Rand Thirty Eight Cents) for the second quarter ended 31 December 2019 as contained in Annexure “A “of the report of the City Manager dated 2020-02-13 and R208 742 227.90 (Two Hundred and Eight Million Seven Hundred and Forty Two Thousand Two Hundred and Twenty Seven Rand Ninety Cents) for the equivalent quarter ended 31 December 2018 as contained in Annexure “A” of the report of the City Manager dated 2020-02-13 has been incurred and reported by various Units.

4.16.2 That detailed report be submitted to the Finance; Security; and Emergency Services in respect of regularization and relevant Heads of Units and Deputy City Managers be in attendance for this purpose.

4.16.3 That, subject to .2 above, the Finance; Security; and Emergency Services Committee makes recommendations to the Municipal Public Accounts Committee, either in support of the write-off or that a further investigation be carried out.

The table below illustrates the summarized comparison of the quantum of irregular expenditure incurred by each Unit for Quarter 2 of both financial years:

No. Unit Name Description of Report 2019/2020 Quarter 2

2018/2019 Quarter 2

1. Electricity Expenditure related to the lease of customer service centre at Isipingo; professional services for the inspection on in-service of electricity poles.

11,412,889.78 85,256,521.69

2. Engineering Expenditure related to the completion of Baby Pool at Rachel Finlayson Swimming Pool; construction of Umgababa Swimming

7,782,758.82 8,140,536.32

3. EThekwini Transport Authority

Expenditure related BRT route C1A-Inanda arterial; provision of bus and taxi rank ablution cleaning and maintenance by the operators

35,626,606.64 1,360,802.62

4. Human Settlements Expenditure related to maintenance work done at Glebelands Hostel/CRU

11,067,211.56 25,592,108.79

5. International Convention Centre

Expenditure related to the lease of scanners

49,911.95 -

6. Moses Mabhida Stadium

Expenditure related to cleaning services

382,600.52 12,930,560.74

7. Revenue The Unit failed to timeously secure a new service provider and continued services on an expired contract, expenditure related to the provision of Electronic Payments Processing Services

2,351,693.11 -

8. Metro Police Expenditure relates to procurement of cleaning services

- 31,500.00


No. Unit Name Description of Report 2019/2020 Quarter 2

2018/2019 Quarter 2

9. Water and Sanitation Expenditure related to the management of ventilated improved pit toilets

5,903,350.00 75,430,197.74

TOTAL 74,577,022.38 208,742,227.90

ADOPTED.

4.17 Reinsurance of City’s Assets:(Page 1029: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)


4.17.1 That authority be granted to the City Manager to provide for an additional premium of R60 Million in 2019/2020 adjustments Budget to adequately reinsure the City’s assets, it being noted that this is due to a lack of appetite in the market because of claims against the City and the impact of climate change.

4.17.2 That the Executive Committee notes this will be funded from savings in the 2019/2020 budget.ADOPTED.

4.18 Report on Investments – January 2020:(Page 1039: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)


That the report on investments for eThekwini Municipality as at 2020-01-31, which records the total funds invested at financial institutions as R5 181 Billion at an average of return on investment of 7,52%, as submitted by the City Manager, in line with the requirements of the Municipal Cash Management and Investment Regulation of the Municipal Finance Management Act, 2003, be noted.NOTED.

4.19 Review of the Valuation Roll Tariff for the 2020/2021 MTRET (7/6/1/5):(Page 1045: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)

With some members of the Committee not in support of the above item, the matter was put to the vote. Members of the ANC and AIC present supported the matters, with the Members of the Democratic Alliance abstaining thereon.

At the Executive Committee level, Members of the DA further abstained on the matter. By the majority support,


4.19.1 That Council of eThekwini Municipality resolve in terms of Section 75A of the Local Government Municipal Systems Act of 2000 (Act 32 of 2000) that with effect from 01 July 2020, the tariffs set out in Annexure "A" of the report of the City Manager dated 2020-01-31.


4.19.2 That subject to the adoption of .1 above, the City Manager be directed to comply with the provisions of Section 75A (3) and (4) of the said Local Municipal Systems Act:-

(i) To display a copy of this resolution and the said tariff of charges conspicuously: -

(a) On the City Hall Notice Boards, and(b) At such other places within the Municipality as the City Manager may

determine

(ii) To seek to convey the information referred to in the said notice to the public through the relevant media platforms.

(iii) To send a copy of the notice to the KwaZulu-Natal Member of the Executive Council (MEC) responsible for Co-operative Governance and Traditional Affairs.

(iv) To publish in the Ezasegagasini Metro a notice in the following format:-

ETHEKWINI MUNICIPALITY

Notice is hereby given that:-

(a) A resolution of the kind contemplated in Section 75A (2) of the Local Government: Municipal Systems Act 2000 (Act 32 of 2000) was passed by the Municipal Council on.....................

(b) A copy of the said resolution and annexed tariff of charges is available for inspection at:-

(i) City Hall, Dr Pixley kaIsaka Seme Street, Durban(ii) .............................................. etc.

(c) The effective date for the implementation of the said tariff of charges is 2020-07-01.

…………………………………CITY MANAGERETHEKWINI MUNICIPALITY Date…………………………….ADOPTED.

4.20 Status Report on Section 21 Schools Debt:(Page 1075: Finance, Security & Emergency Services Committee - Agenda 2020-02-21)


4.20.1 That the Committee supports the initiation of intergovernmental dispute resolution process with the Department of Education and National Treasury with regard to measures to recover outstanding amount on Municipal services by Section 21 schools.


4.20.2 That the Committee supports the issuing of summons to the schools to stop prescription.

4.20.3 That the Committee supports the installation of phase three (3) prepaid meters for electricity and that this installation be expedited.

4.20.4 That the Water department urgently advises on timelines for the introduction of prepaid water meters.ADOPTED.

5. AMENDMENT TO COUNCIL RESOLUTION AUTHORISING RECEIPT OF GRANT FUNDING: DURBAN GREEN CORRIDORS PROGRAMME (20/1/6/3 & 7/4/1)

(Page 16)

The Committee noted a request to amend the resolution 2.5.3 pertaining to the Durban Green Corridors Programme, by including the amount to be received from the City of Bremen in this regard.

Accordingly,


5.1 That the following Council resolution dated 2019-07-31, in paragraph 2.5.3, approving the Progress Report and Request for Authority: Durban Green Corridors Programme, be amended as follows:

“2.5.3 That subject to the adoption of .1 and .2 above, authority be granted to the Head: Economic Development to enter into agreements with the City of Bremen and with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) to receive funds for the implementation of co-funded partnership projects of the Durban Green Corridors Programme.”

5.2 That subject to the adoption of .1 and .2 above, authority be granted to the Head: Economic Development to enter into agreements with the City of Bremen to receive Euro 216,279.00 for the Green Bremen-West to KwaMashu: climate smart green space management, development and use as places for environmental education project and, with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) to receive Euro 92,929.96 to employ a temporary Project Manager, plus travel and training to enhance the capacity of eThekwini Municipality in implementation-driven open space management, while strengthening the network of stakeholders between Durban and Bremen.ADOPTED.


6. SUMMARY OF ALL TRIPS COVERING A PERIOD OF 2 YEARS FROM 2018 – 2020 (14/1)

(Page 20)

It was requested that the costs of the trips undertaken should also be included to form part of the report.

On this basis,


That Council notes the summary of the International trips covering a period of two (2) years from 2018 to 2020 as detailed in the table below:

Trip to Dates Return on investment

Malaysia (semi-sponsored by UNITAR)

01/02/2018 to 05/02/2018

Exhibition of municipal projects Sharing of best practices, experiences,

knowledge and innovation

Italy (semi-sponsored by UNITAR)

11/02/2018 to17/02/2018

Train the Trainer Accreditation Training of municipal employees and

community on “Life Beyond Tourism”

Ethiopia (sponsored by UNITAR)

25/04/2018 to28/04/2018

The trip was cancelled due to security concern. It was supposed to be attended by myself and Mr Thami Manyathi rolling out Road Safety Programme we do with UNITAR across Africa

Malawi (sponsored by ALGA) (UCLGA)

15/02/2018 to19/05/2018

Sponsorship of trips Sharing of best practices

USA (sponsored by UNITAR) 07/07/2018 to19/07/2018

Learning Exchange of interns with CIFAL Atlanta

Morocco, Belgium (semi-sponsored by UNITAR)

16/11/2018 to 25/11/2018

Partnership with CIFAL Flanders on the Development of Homeless People

Road Safety Programme with UNITAR Anti-corruption Programme with

UNITAR

Reunion (sponsored by AIVP) 06/11/2018 to09/11/2018

Our Strategy on Learning and Development of Post Cities was showcased as a model.

Partnership with the Reunion Island

Morocco (sponsored by ALGA) 06/12/2018 to09/12/2018

Attendance of the programme at a discount by our city officials

USA (jointly prepared with Puvesh Akkiah and submitted separate to EXCO)

16/09/2019 to28/09/2019

Learning Exchange of students with CIFAL Instabul (Turkey)

Ecuador (sponsored by UNITAR)

18/01/2020 to25/01/2020

Potential funding for Development of Homeless People

Learning Exchange Programme with UAE

NOTED.


7. C40 WORLD MAYORAL SUMMIT FEEDBACK (32/2/2)

(Page 212)


7.1 That Council notes the report on update on the Mayors participation in the C40 Climate Leadership Group as the Vice-Chair for the African Region, and his attendance to the C40 World Mayoral Summit in Copenhagen, Denmark, and the following commitments arising therefrom:

7.1.1 The convening of an African Region session for C40 Cities to be hosted once a year to discuss African contextual problems linked to the climate and the impact within the region and the appropriate approaches and solutions for the region that can be used to address climate related issues.

7.1.2 The need to extend the engagements to Cities not participating within C40, namely, within the Southern African Development Community (SADC) region to develop a consolidated Agenda and strategy for climate change and the approach to address its impact.

7.1.3 The need to establish a Technical Support group for climate change to lay the foundation to support the political leadership in addressing climate change in the continent.

7.2 That Council continues to support the Mayor’s and City’s engagement with the C40, and the efforts for the implementation of the Climate Action Plan (CAP) within the Municipality.ADOPTED.

8. DURBAN MARINE THEME PARK (USHAKA MARINE WORLD) – FILLING OF SIX (6) DIRECTOR POSTS (4/3/2)

(Page 253)


That Council approves the appointment of Ms Babongile Chiliza, Mr Samuel Ngcobo, Prof Antonia Thandi Nzama, Mr Lucky Gabela, Ms Honey Mamabolo and Dr Pritish Dala as Non-Executive Directors of Durban Marine Theme Park (DTMP), with effect from 2020-03-01 to 2023-02-28, it being recorded that the incumbents are in possession of requisite qualifications and expertise to support the strategic objectives of the DTMP.ADOPTED.


9. INKOSI ALBERT LUTHULI INTERNATIONAL CONVENTION CENTRE (TRADING AS DURBAN INTERNATIONAL CONVENTION CENTRE: DICC) - FILLING OF FOUR (4) DIRECTOR POSTS (4/3/2)

(Page 256)


That Council approves the appointment of Mr Bonginkosi Mshengu, Mr Njabulo Neville Ndaba, Dr Mduduzi Justice Kennedy Bophela and Dr Nomusa Zethu Qunta as Non-Executive Directors of the Durban International Convention Centre (DICC), with effect from 2020-03-01 to 2023-02-28, it being recorded that the incumbents are in possession of requisite qualifications and expertise to support the strategic objectives of the DICC.ADOPTED.

10. APPROVAL OF ETHEKWINI MUNICIPALITY INDIGENT POLICY (7/2/P)

(Page 258)

The Committee appreciated the good turnaround time in submitting the requested Indigent Policy for the Municipality. The content thereof was interrogated with comments and input being made to ensure approval of a watertight policy document.

Emphasis was made that the policy should be biased to the poorest of the poor. That, strict monitoring be made to ensure the policy cater for the rightful beneficiaries. Compulsory home visits were one of the options cited to avoid potential abuse of the policy.

Arising from comments and input made, it was agreed to amend the policy as follows:

(i) Removal of Clause 6.1.1(c) relating to refugees being eligible for relief in terms of the policy. The rephrasing of Clause 8.7 to give powers to all Councillors to determine status of beneficiaries to be eligible for relief.

(ii) Development of monitoring and evaluation tool to validate policy implementation

In view of the foregoing,


That the eThekwini Municipality Indigent Policy 2020/21 attached as Annexure “A” to the report of the City Manager dated 2020-02-12, be approved, subject to the following amendments:

(i) Removal of Clause 6.1.1(c) relating to refugees being eligible for relief in terms of the policy.

(ii) The rephrasing of Clause 8.7 to give powers to all Councillors to determine status of beneficiaries to be eligible for relief.

(iii) Development of monitoring and evaluation tool to validate policy implementation


ADOPTED.

11. APPOINTMENT OF PANEL MEMBERS FOR 2017/2018 AND 2018/2019 PERFORMANCE ASSESSMENT FOR DEPUTY CITY MANAGERS (4/6/2)

(Page 288)


That the in terms of Regulation 27(4) of the Local Government: Municipal Performance Regulations, assessment panel for the Deputy City Managers for the 2017/2018 and the 2018/2019 financial years be constituted, for the purpose of evaluating the annual performance of the Deputy City Managers:

Panel Members:

1. City Manager Mr SC Nzuza

2. Chairperson of the Audit Committee Mr N Mhlongo

3. Chairperson of Governance and Human Resources Councillor NI Sithole

4. Municipal Manager from Ubuhlebezwe Municipality Mr Sineke

ADOPTED.

3. THIRD REPORT OF THE EXECUTIVE COMMITTEE: SPECIAL MEETING HELD ON TUESDAY, 2020-02-27

_____________

1. EXPANSION OF SCOPE FOR THE COMMUNITY WORK PROGRAMME TO SUPPORT THE IMPLEMENTATION OF THE DISTRICT DEVELOPMENT MODEL (4/3/5/3)

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The Committee appreciated the support being given by the National Government to implement the District Development Model (DDM). To circumvent the issue of tight deadlines of March 2020 within which to spend an amount of R20 Million being allocated by the National Government for this purpose, confirmation was given that arrangement has already been made to use the existing platform of the Zibambele Programme to recruit a number of five hundred (500) youth members required for the DDM. That further engagements are underway with the National Government regarding the deadline, and, it will be recognized that the implementation commitment by the Municipality has been made prior to the deadline date.

The Executive Committee Members of the Democratic Alliance (03) abstained on the matter at this stage. With the majority members being in support,


1.1 That Council accepts the support being given by the National Department of Co-operative Governance and Traditional Affairs (COGTA) regarding the


expansion of the scope of community work through the implementation of the District Development Model (DDM).

1.2 That, subject to the adoption of .1 above, and given time constraints in relation to the deadline within which to utilise funding being allocated by COGTA National, authority be granted to utilise the existing Zibambele Programme to recruit a number of five hundred (500) youth members, as part of addressing youth unemployment challenges through DDM initiation.

1.3 That authority be granted for the Municipality to accept an amount of R20 Million being allocated by COGTA National to cater for the expansion scope of work in respect of the DDM thus the recruitment of 500 youth members.

Financial implication:The estimated contribution by the Department of Corporate Governance is R20 MillionADOPTED, by the majority vote.

2. PROGRESS REPORT – ESTABLISHMENT OF THE ETHEKWINI MUNICIPALITY DOMESTIC MEDIUM-TERM NOTE (DMTN) (7/3/1/1/2)

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Upon enquiry, an explanation was given on the rationale behind using external professionals, in the form of external Legal Advisors and Auditors to oversee this process. That this was mainly due to the business involved which was of a special technical nature.


2.1 That authority be granted for the eThekwini Municipality to register the ZAR10,000,000,000 Domestic Medium Term Note Programme (the Programme) with the Johannesburg Stock of Exchange (the JSE) Limited pursuant to a Programme Memorandum (the DMTN Programme Memorandum) read together with an information statement (the Information Statement) to be incorporated into the DMTN Programme by reference, in terms of which the eThekwini Municipality may from time to time issue notes subject to the terms and conditions contained in the Programme Memorandum (the Terms and Conditions).

2.2 That approval be granted to the eThekwini Municipality to enter into and perform all its obligations under the Programme, including the DMTN Programme Memorandum, the Information Statement and all other ancillary documents required for purposes of establishing the Programme (the Programme Documents).

2.3 That subject to .1 above, authorization be given that the DMTN Programme Memorandum and Information Statement are submitted and placed with the JSE for approval and authorization for the performance of any other required actions and formalities in connection with the establishment of the Programme on JSE and the implementation of the Programme Documents.

2.4 That subject to .1 above, the City Manager and the Deputy City Manager: Finance be authorised to:


2.4.1 Approve and sign the DMTN Programme Memorandum, the Programme Documents and all documents necessary, appropriate or desirable in connection with the establishment of the Programme.

2.4.2 Generally, do all things and sign all such other documents and/or agreements reasonably required or necessary to give effect to the resolutions referred above.ADOPTED.

3. ETHEKWINI MUNICIPALITY ADJUSTMENT BUDGET 2019/2020 (7/1/2/2)

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Robust discussion ensued on the legislative requirement pertaining to the tabling of the adjustment budget to full Council. That technically the tabling was in deviation from the requirements of the Municipal Finance Management Act (MFMA) No. 56 of 2003. It was noted that compliance has been achieved with the document having served to the respective Portfolio Committees.

However, that notwithstanding that the document complies with the requirements of Section 28(5) of the MFMA, with some Council Members not having had sight of the consolidated adjustment budget document, this renders Council to be in deviation

of the provision of the Act. Commitments were thereafter made to improve submission timelines in future, it being acknowledged though that the majority of Council Members have been granted opportunity to deliberate on the matter. That, in view thereof, authority be granted to allow other Political Parties to deliberate on the adjustment budget on the proviso that the Council meeting commences later than the scheduled commencement time. This was agreed to.

The Executive Members of DA (03) and the IFP (01) voted against the budget. With the majority ANC (05) supporting the Adjustment Budget,


3.1 That in accordance with the provisions of Section 28 of the Municipal Finance Management Act and in compliance with the Municipal Budget and Reporting Regulations, the adjustments to the 2019/2020 Budget of eThekwini Municipality (Parent Municipality) as reflected in Annexure ‘A - E’ of the report of the City Manager dated 2020-02-24, be approved, it being recorded that the approval of the Capital Adjustments Budget constitutes project approval of the specific projects.

3.2 That authority be granted for uShaka Marine World SOC (Ltd) to use the amount of R6 000 000.00 (Six Million Rand) that was initially approved by Council for a feasibility study, to undertake critical maintenance at the Theme Park, it being noted that the funding could not be spent on the feasibility study in the current year due to procurement delays and will be spent in 2020/2021. The funding will be transferred to uShaka Marine World SOC (Ltd) on a re-imburse basis based on work completed.

3.3 That the adjustment budgets of the eThekwini Municipal Entities as approved by the respective Board of Directors, be noted, in compliance with Section 87 of the Municipal Finance Management Act.


3.4 That in light of the anticipated increased operating expenditure not being funded as well as the reduced income from trading services, urgent austerity measure be put in place to review expenditure and notwithstanding collection rates being 96%, further efforts be maximized in improving revenue collection.

Consideration of the above-mentioned recommendations of the Executive Committee were DEFERRED to a Special Meeting of the Council to be held on 2020-02-28.

4. AUTHORITY TO UTILIZE USDG AND HSDG FUNDS TO RE-IMBURSE INFRASTRUCTURAL COST FOR INFILL HOUSING PROJECT 2018/2019 (22/7/1/1/2)

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The initiative being made to provide affordable gap housing to beneficiaries was appreciated. Therefore, the Committee supported the approach being undertaken to reduce high development costs by making grant funding available to developers which will result in lowered purchase price for beneficiaries.

The Executive Committee Members of the DA (03) voted against this matter citing a need to address process issues relating to infill housing, with the Phoenix area being mentioned in particular. That a transparent approach be followed where relevant parties are consulted accordingly.

The Executive Committee Members of the ANC (06) and the IFP (01) supported the matter as they were of the view that great strides have been made to ensure home ownership by mostly the previously excluded income group who are not eligible to received low cost housing. That awareness be strengthened to communicate this housing opportunity to the gap market income group.

Accordingly, by the majority vote,


4.1 That authority be granted for the Deputy City Manager: Human Settlements; Engineering and Transport to utilise Urban Settlements Development Grant (USDG) and Human Settlement Development Grant (HSDG) funds to re-imburse developers for infrastructural cost borne by them during the 2018/19 financial year for the human settlements infill housing project in Newlands; Phoenix; and Chatsworth.

4.2 That subject to the adoption of .1 above, authority be granted to the City Managerto enter into Memorandum of Agreement (MOA) with the Private Developers to facilitate the re-imbursement for infrastructural development costs.

4.3 That existing contractual agreements between the eThekwini Municipality and the Infill Developers be renewed until contractual obligations have been fulfilled, such as the development of allocated sites.

4.4 That grants and income incurred that have been awarded to the Infill Housing be cascaded to the Infill Housing Project Vote.


4.5 That funding be availed for the Newlands and Phoenix, Infill/Gap Housing Projectin the amount of R75 120 000.00 (Seventy Five Million One Hundred and Twenty Thousand Rand) from the USDG, R35 056 000.00 (Thirty Five Million and Fifty Six Thousand Rand) from the HSDG, for houses constructed in the 2018/2019 financial year, in Newlands, Phoenix and Chatsworth.


1. Grants that have been allocated to the infill housing project cannot be accessed due to the expenditure been done the previous financial year 2018/2019

2. The support from the Municipality needs to be both administrative and financial in order to achieve the desired outcomes for infill/ GAP housing. To develop affordable infill/ Gap housing units ranging from R350 000 to R600 000 each unit requires as estimated R120 000 Capital Demand from the City (USDG) per unit and an estimated R110 000.00 from Human Settlements Development Grant (HSDG).

3. The following financial breakdown provides the financial implications for the Chatsworth, Newlands and Phoenix infill/ GAP housing project which comprises of units:

AREA NO. OF UNITS USDG (R120 000 p/u)

HSDG (R56 000 p/u)

STATUS

Newlands 324 R38 880 000.00

R18 144 000.00

Completed

Phoenix 288 R34 560 000.00

R16 128 000.00

Completed

Chatsworth 14 R 1 680 000.00

R 784 000.00

Completed

TOTAL 626 R75 120 000.00

R35 056 000.00

4. There is an economic benefit where the Municipality will derive income from the increased rates base. Furthermore, there is general upliftment of society that comes from the provision of housing for the targeted communities and government alike.

ADOPTED.

5. REQUEST FOR APPROVAL TO ENTER INTO DESTINATION PROMOTION PARTNERSHIP TO HOST INTERNATIONAL ROTARY CONGRESS IN 2026 (13/2/1/2/1)

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The Committee supported the proposed investment partnership, it being acknowledged that hosting the event of this nature will boost the local economy. It was noted that further details, including overall financial implications, will be provided upon receiving the outcome of the bid to be submitted by the Municipality in this regard.

Accordingly,



5.1 That Council approves the submission of the interest that the Rotary International Congress, be hosted in Durban in 2026, it being recorded that the Rotary International is a world-wide service organization dedicated to serving underprivileged communities in the following six (06) areas of focus:

(i) Peace and conflict prevention/resolution(ii) Disease prevention and treatment(iii) Water and Sanitation(iv) Maternal and child health(v) Basic education and literacy(vi) Economic and community development

5.2 That Council approves, in-principle, the partnership investment of R43 149 122.00 (Forty Three Million One Hundred and Forty Nine Thousand One Hundred and Twenty Two Rand) as the projected rates towards securing the Inkosi Albert Luthuli Complex (ICC and DEC), as well as hospitality marquees and other venue related costs.

5.3 That authority be granted for the Deputy City Manager: Economic Development and Planning to negotiate appropriate partnership mileage with the Rotary International, commensurate to the City’s Investment.

5.4 That subject to the bid being secured, authority be granted for the City Manager to enter into a contractual agreement with the Rotary International.

5.5 That, when the bid is secured, a report be tabled to Council to advise that the bid has been secured and to seek authority in respect of the actual financial implications at the time if there are any changes.ADOPTED.

6. REDEVELOPMENT OF LAHEE PARK SPORTS PRECINCT (31/1/1/2)

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It was recalled that in view of the value of the redevelopment of the Lahee Park Sports Precinct being in excess of R10 Million, the redevelopment project was advertised for public consultation as per the statutory requirement. It was reported that there were no objection received from the public consultation process. That both Provincial and National Treasury have been consulted and additional information provided accordingly as per their request.

The Committee having been satisfied with the statutory process followed,


6.1 That the eThekwini Municipal Council declares in terms of Section 14 of the Municipal Finance Management Act No. 56 of 2003 (MFMA) read together with the Municipal Asset Transfer Regulations (MATR) that properties described as Remainder of Erf 1731, Part of Erf 1733, Part of Erf 1734, Part of Erf 3118, Erven 1736, 2008, all of Pinetown, measuring approximately 23.1458 hectares, as depicted on Hand Plan SH 9936 are not needed to provide the minimum level basic municipal services and to be surplus to the requirements of the municipality.


6.2 That Council gives approval for the granting of rights in terms of Regulation 34(1)(b) read with Regulation 36 of the MATR to grant long-term right to use, control and manage Remainder of Erf 1731, Part of Erf 1733, Part of Erf 1734, Part of Erf 3118, Erven 1736, 2008, all of Pinetown, measuring approximately 23.1458 hectares as depicted on hand Plan SH 9936, for a period of thirty (30) years in respect of the development of Lahee Park Sports Precinct, including upgrade to the existing facilities and the establishment of new facilities and infrastructure, to re-establish Lahee Park as the Premier Sporting Precinct in the western region of the City, it being recorded that after this lease period has lapsed the ownership of the asset would belong to the Municipality.

6.3 That the current market rental value of the property is currently assessed at a value of R3 299 000.00 (Three Million Two Hundred and Ninety Nine Thousand Rand), per annum exclusive of VAT.

6.4 That Council approves that the lease in respect of the properties/sites for exclusive sports development be discounted by 90% of the fair market value in accordance with Regulations 13(2) of the MATR of the MFMA, 2003, on condition that the local community should access the facility for its sporting and other events, the discounted market rental of the property being assessed at a value of R3 299 000.00 (Three Million Two Hundred and Ninety Nine Thousand Rand), per annum, escalating at a rate of 6% per annum, suspended for the period of construction.

6.5 That, all costs incidental to the transaction shall be at the cost of the lessee.

6.6 That, all developmental plans must be submitted to the Local Authority for approval prior to any construction.

6.7 That authority be granted to the Head: Real Estate to sign all documents necessaryto give effect to this transaction in terms of the Supply Chain Management Policy and the Land Disposal & Granting of Rights Policy of the Municipality and any other applicable legislation, and that it shall be further subject to such further conditions as the Head: Real Estate, considers necessary to protect Council interest.ADOPTED.

4. REPORT OF THE MUNICIPAL PUBLIC ACCOUNTS COMMITTEE

The recommendations contained in the Report of the Municipal Public Accounts Committee (2019/2020 MPAC Quarterly Report) were ADOPTED.

5. REPORT OF THE ETHICS COMMITTEE

In view of there being no quorum, the above-mentioned Report of the Ethics Committee was NOT CONSIDERED.

6. NOTICE OF MOTION

6.1 NOTICE OF MOTION : PROPOSED BY COUNCILLOR BD NAIDOO AND SECONDED BY COUNCILLOR Y GOVENDER: THE LACK OF HUMAN RESOURCES, TOOLS, EQUIPMENT AND MACHINERY, AND OTHER ANY


OTHER CONTRIBUTING FACTOR, REQUIRED TO ADEQUATELY ADDRESS THE BACK LOG OF SEWER RELATED COMPLAINTS (23/2/1/2)

In view of there being no quorum, the above-mentioned Notice of Motion by Councillor BD Naidoo was NOT CONSIDERED.

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

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

COUNCILLORSCouncillor J Annipen : Request to leave at 12:30Councillor T Biyela : 2020-02-25 to 27 (Indisposed)Councillor S Brijmohan : Request to leave at 12:30Councillor SS Butelezi : Request to leave at 13:00Councillor R Cloete : 2020-02-27 (Indisposed)Councillor S Govender : 2020-02-26 to 03-01 (Indisposed)Councillor MS Gwala : 2020-02-27 (Indisposed)Councillor RC Hlophe : Request to leave at 13:00Councillor MT Kaunda : 2020-02-27 (Municipal Business)Councillor SA Kaunda : 2020-03-18 to 20 (Municipal Business)Councillor TJ Luthuli : 2020-02-13 to 27 (Indisposed)Councillor TN Mabanga : Request to leave at 14:00Councillor PM Mbambo : 2020-02-27 to 03-01 (Indisposed)Councillor P Mfeka : Request to leave at 12:00Councillor BA Mkhize : 2020-02-26 to 27 (Indisposed)Councillor SM Mkhwanazi : 2020-02-24 to 28 (Indisposed)Councillor SM Mnguni : 2020-02-27 to 28 (Personal Commitments)Councillor X Nala : 2020-02-26 to 03-01 (Indisposed)Councillor BA Ndlovu : 2020-02-27 (Personal Commitments)Councillor MK Ndzimbomvu : 2020-02-26 to 27 (Personal Commitments)Councillor SB Ngcongo : 2020-02-26 to 28 (Personal Commitments)Councillor MS Nkosi : Request to leave at 13:00Councillor PH Nxumalo : 2020-02-27 to 03-30 (Indisposed)Councillor MS Nyawose : 2020-02-27 (Indisposed)Councillor TK Phohlo : Request to leave at 15:00Councillor P Pillay : 2020-02-27 (Personal Commitments)Councillor MD Qwabe : 2020-02-27 (Indisposed)Councillor BR Qhantsi : 2020-02-27 (Personal Commitments)Councillor A Ramkissoon : Request to leave at 14:00Councillor AN Shabalala : 2020-02-21 to 03-10 (Indisposed)Councillor A Shaheed : Request to leave at 12:30Councillor MG Shange : 2020-02-27 (Personal Commitments)Councillor SG Shange : 2020-02-24 to 29 (Indisposed)Councillor H Shezi : Request to leave at 14:00Councillor PS Sishange : 2020-02-19 to 28 (Personal Commitments)Councillor ZR Sokhabase : 2020-02-19 to 28 (Personal Commitments)Councillor C Xesibe : 2020-02-27 (Indisposed)Councillor NY Young : 2020-02-27 (Indisposed)Councillor BM Zulu : Request to leave at 15:00

AMAKHOSIInkosi KT Mkhize : 2020-02-27 (Personal Commitments)


Inkosi EB Shozi : 2020-02-27 (Personal Commitments)

City Administration: Secretariat27 February 2020