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- 2382 -

No. 56 MINUTES

OF

eThekwini Council

Minutes of proceedings of the Meeting of the eThekwini Council held

at the City Hall Main Auditorium, Church Walk, Durban

on Wednesday, 2015-06-24T10:00

PRESENT : Councillors L Naidoo (Speaker), NF Shabalala (Deputy Mayor), M Abraham,

MF Adam, C Arunajallam, SV Asbury, ME Bayeni, A Beetge, S Bhanprakash,

MR Bhengu, HP Biyela, WJM Burne, SS Butelezi, I Cassimjee, Hendrick Cele,

Hlengiwe Cele, JN Cele, MS Cele, NT Cele, NB Chamane, AM Coen, TP Collins,

M Darasath, P Davis, HU De Boer, MAK Dladla, AN Dlamini, B Dlamini,

CB Dlamini, JM Dlamini, NR Dlamini, S Dlamini, BS Dludla, DL Du Bois,

DC Gaillard, D Ganesh, VE Gebashe, HD Goge, R Gokool, D Govender,

G Govender, NL Graham, BT Gumede, MP Gumede, NC Gumede, SN Gumede,

TJ Gumede, ZRT Gumede, BM Gwala, S Hansraj, PP Hlengwa, BA Hlongwa,

DG Hoorzuk, S Hoosen, NB Iyir, M Johnson, S Kalicharan, SA Kaunda,

NG Khawula, LB Khuzwayo, S Khuzwayo, SKB Kikine, VT Kunju, CB Langa,

NP Langa, RJ Lefevre, SH Lubhede, DD Mabizela, RD Macpherson, Z Madlala,

T Magubane, MQ Magwaza, NJ Makhanya Sibiya, WL Mapena,

HG Maphumulo, JL Mbongwa, SM Mchunu, SW Mcoyi, LP Mdlalose,

LM Meyer, P Mfeka, DM Mhlanzi, SE Mhlongo, LM Mhlongo-Ntaka,

AR Mitchell, MM Mkhize, MP Mkhize, NI Mkhize, S Mkhize, DF Mncwabe,

ZM Mncwango, BR Mngadi, M Mngadi, LN Mngwengwe, SR Moodley,

S Morar, FT Moyo, BE Mpungose, NE Msani, SNL Mshengu, AG Mthembu,

BA Mthembu, MK Mthembu, NE Mthembu, ON Mthembu, TM Mthethwa,

BR Mtshali, TS Mtshali, RM Mzobe, Jonathan Naidoo, P Naidoo, S Naidoo,

SR Naidoo, TJ Ncane, NB Ndlela, HM Ndlovu, S Ndlovu, MK Ndzimbomvu,

ZS Ndzoyiya, VS Necobo, GS Ngcobo, MC Ngcobo, SP Ngcobo, DL Ngema,

S Ngema, MM Ngiba, TT Ngubane, BA Ngwane, LA Ngwazi, SJM Nhlapho,

MS Nkosi, NC Nofeketa, GM Noyce, B Ntshangase, MM Ntshangase,

NN Nyanisa, MS Nyawose, ZV Nzama, TT Nzuza, P Padayachee, F Peer,

BP Phungula, JJ Pienaar, D Pillay, DR Pillay, KR Pillay, KB Pillay, Krishna

Pillay, P Pillay, BD Prinsloo, GDA Pullan, VOO Qulo, S Ryley, AN Shabalala,

MT Shelembe, PN Shembe, ME Sibiya, NP Sibiya, PM Sibiya, B Singh, D Singh,

J Singh, PS Sishange, AD Snyman, ZR Sokhabase, JB Sosibo, BA Sutcliffe,

JC Van den Berg, MB Xhakaza, SZ Xulu, NY Young, SW Zenzile, BO Zondo,

MZ Zulu, TM Zuma, MS Zungu, MS Zwane and there being (2) two vacancies.

ABSENT : Councillors JS Nxumalo (His Worship the Mayor) (on leave - Municipal

Business), MN Bhengu (on leave), BA Chili (on leave - indisposed), RJ Crouch

(on leave), HE Dube (on leave), BA Fortein (on leave - Municipal Business),

S Govender (on leave), VC Gumede, Jane Naidoo (on leave), S Jayanathan (on

leave – indisposed), P Luthuli (on leave - indisposed), V Lutyeku (on leave -

indisposed), NT Mabaso, AB Mvubu, BA Mkhize (on leave), MC Mnyandu (on

leave - indisposed), M Nojiyeza (on leave - indisposed), ZP Mthethwa (on leave -

indisposed), LN Ndlovu (on leave - indisposed), OB Ngcobo, RZ Phewa,

S Shange (on leave - indisposed), DM Shozi (on leave - indisposed), EL Singh (on

leave), WM Thring (on leave) and P Zungu.

- 2383 - eThekwini Municipality

(Council Minutes - 2015-06-24)

AMAKHOSI

PRESENT : Inkosi BF Bhengu, Inkosi VR Cele, Inkosi PP Luthuli, Inkosi DZ Mkhize,

Inkosi S Mlaba, Inkosi ZA Ngcobo and Inkosi EB Shozi and Induna

M Ngcobo.

AMAKHOSI

ABSENT : Inkosi TF Gwala (On Leave), Inkosi NM Hlengwa, Inkosi KS Makhanya,

Inkosi TBE Mkhize, Inkosi RF Mthembu and Inkosi MB Ngcobo.

OFFICIALS

PRESENT : Messrs/Mesdames S Sithole (City Manager), N Moerane (Head : Legal

Services and Compliance), BM Mhlongo (Deputy Head: Office of the

Speaker), AM Seheri (Senior Manager : Secretariat), T Ndlovu (Manager:

Council Committees), KR Ramsunder (Chief Committee Officer) and

K Munthrie (Principal Committee Officer).

____________

(At the commencement of the meeting 163 Councillors were present, comprising ANC – 97,

DA - 40, MF - 7, NFP - 8, IFP - 6, ACDP - 1, TA - 1, COPE - 1, APC – 1 and INDEPENDENT -1).

_____________

1. NOTICE CONVENING THE MEETING

The City Manager read the Notice convening the Meeting as per the statutory

requirement.

2. OPENING

The Speaker declared the meeting open and thereafter extended a warm welcome to

the Deputy Mayor; Chief Whip; Members of the Executive Committee; Honourable

Councillors; Amakhosi present, City Manager; Deputy City Managers; Head: Legal

Services and Compliance; Media; Distinguished Guests and Members of the

Administration.

3. NATIONAL ANTHEM

At the request of the Speaker the meeting stood to sing the National Anthem of the

African Union and the National Anthem of South Africa.

Following the singing of the National Anthems Councilor TJ Gumede expressed her

concern with regard to the National Anthem of the African Union indicating that

such Anthem needs to be reviewed as it did not possess lyrics from any of the

African languages.

The Speaker undertook to convey such question to the relevant authorities.

4. OPPORTUNITY FOR PRAYER/MEDITATION

The Speaker requested the Council to pray for peace and tolerance and remember

those who had passed on, in particular the late Councillors JIM Mulqueeny and

NG Cotoza. He also requested the Council to remember Councillors S Shange,

AB Mvubu, TS Mtshali and Z Mncwango who had lost loved ones and Councillor

B Jayanathan who was seriously ill.



5. OFFICIAL ANNOUNCEMENTS

The Speaker advised that he would deal with items 5 and 6 of the Order of

Procedure, relative to official announcements and his report, concurrently and

emphasized that the Rules of Order would be applied stringently in order to avoid

any disruptions. He then reminded Councillors to sign the Attendance Register which

was being circulated, advising that failure to do so would result in them being

reflected in the Minutes as having been absent from the meeting. Councillors were

requested to notify the Officials on duty if they wanted to leave the meeting for any

reason. However, Councillors were also advised that in terms of the Rules, no

Councillor should be allowed to leave the meeting when voting was in progress.

In view of translation purposes, Councillors were requested to talk slowly and clearly

during the proceedings.

Councillors were requested to switch off their microphones after speaking as the

sound system would mal-function if microphones were left on. Councillors were

reminded and encouraged to wear their name badges when attending Council

meetings and to dress appropriately to uphold the dignity of the Council.

In view of disruptions being experienced during the proceedings as a result of cell

phones, Councillors were requested to switch them off or activate silent mode once

the meeting commenced.

On behalf of the Council the Speaker extended condolences to the families of the late

Councillors JIM Mulqueeny and NG Cotoza who were called to rest on 2015-06-03

and 14, respectively. He advised that the late Councillor Mulqueeny served as a

Proportional Representative Councillor since 2008 and was a member of the Finance

and Procurement Committee. The late Councillor Cotoza also served as a

Proportional Representative Councillor and was a member of the Governance and

Human Resources Committee.

The Speaker made reference to the Local Labour Forum Training Programme being

convened by the Bargaining Council in August and requested those Councillors

serving on Cluster and Unit Local Labour Forums to complete the registration forms

being circulated by Secretariat at this Council meeting.

Continuing, he extended an invitation to all Councillors to attend the Performance

Monitoring and Evaluation Workshop being held on Thursday, 2015-06-25 at 10:30

at the Moses Mabhida Stadium.

The Speaker extended his congratulations to the City of eThekwini for being

recognized by the London Financial Times for the effective Urban Management of

projects such as Bridge City and the Urban Renewal in the INK (Inanda, Ntuzuma

and Kwa-Mashu) Area. Ethekwini was now amongst the leading Cities in Vietnam,

Spain and India.

In expressing his appreciation to both the Political and the Administrative leadership

of the Council, the Speaker advised that, once again, the Inkosi Albert Luthuli

International Convention Centre was voted the best Conference Centre in Africa

while Durban was voted the best destination in Africa.

He thereafter spoke of Mandela Day activities advising that details would be

circulated in due course and congratulated the Gay Community for their hosting of

the “Gay Pride” event.



The Speaker touched on the signing of the three-year contract between Durban

Tourism and Cell C Sharks Rugby Club adding that such a partnership would

enhance eThekwini as a tourist destination.

In respect of his Back to Basics report the Speaker advised that in the month of June

six community report back meetings had been held by Councillors SM Mchunu,

T Magubane, P Zungu, JL Mbongwa, AN Shabalala and SS Buthelezi. The issues

discussed at these report back meetings centered around Youth and Housing matters.

He encouraged all Councillors to convene report back meetings.

Further, he advised that two service delivery protests had been held in the current

month in Wards 93 and 37. The protest in Ward 93 was about roads, foot paths,

ablution facilities, housing and ward demarcation whilst the protest in Ward 37 was

about housing projects.

In terms of Ward Committee meetings the Speaker indicated that 54 Ward

Committees had had their monthly meetings in June whilst 29 were due to be

convened on 27th and 28th of June. In that regard he referred to COGTA’s Ward

Committees Functionality Report and expressed concern, as in terms of such report

eThekwini Municipality’s Ward Committees were considered to be non-functional in

view of Councillors failing to convene meetings to report back on ward

developmental issues. Once again he urged Councillors to convene meetings.

In concluding the Speaker extended birthday wishes to all Councillors who

celebrated their birthdays in June and wished the Muslim Community well in the

holy month of Ramadaan.

6. PRESENTATION : HAZELMERE DAM DROUGHT PLAN

Mr Richard Nongoma, Deputy Head : Water Operations was welcomed to the

meeting and thereafter made a presentation on the current status of the Hazelmere

Dam Drought Plan.

Mr Nongoma provided a background to the current situation at Hazelmere Dam in

terms of water supply which had now reached a critically low level at 29.66%, ie;

less than 60 days of water supply. He spoke on the implementation of mandatory

curtailments at Hazelmere Waterworks in order to mitigate risks and thereby enable

supply assurance on a short-term basis. He further mentioned stakeholder

engagements that had been convened with both Umgeni Water and other water

authorities. He advised of Plant Operators that would commence pumping water at

06:00 daily however that was subject to change. The Operators would monitor the

volumes on an hourly basis and the pump would be shut off periodically to ensure

that volumes as per the system was being achieved. Hourly logging of readings

would be carried out to ensure that pumps were shut off at precise times. Once

pumping for the day has ceased it would only resume the following day and

curtailment on water would therefore be applied on a daily basis.

Mr Nongoma mentioned affected areas in terms of operational details, duration of

planned water interruptions and their frequency. He highlighted the long list of

operational interventions on a short to medium-term basis as implemented by the

Water Operations department. He emphasised on communication and reporting by

regular media broadcasts, updating consumers on the current status and further

interventions and the escalation of prevailing challenges to Senior Municipal

Officials to gain their support and attention.



He concluded by providing the following clarity to questions and concerns raised:-

a. The erection of signs at showers at the beaches would be investigated.

b. In the event of a drought, the National Department of Water and Sanitation

was currently working on a system to convey water to eThekwini. However

in the following year the intention would be to mitigate water provision from

the Durban Heights Scheme and also further reduce the usage and demand of

water.

c. The option of desalination was currently being investigated considering that

there was less than 60 days of water supply, however there was a need to

address imminent issues.

d. Rain water harvesting would not be a cost effective approach.

7. APPLICATIONS FOR LEAVE OF ABSENCE

RESOLVED:

That the following Councillors be granted leave of absence as indicated below:-

His Worship the Mayor

Councillor JS Nxumalo : 2015-06-24 (on Mayoral duties)

Councillor V Lutyeku : 2015-06-23 to 26 (Indisposed)

Councillor BA Mkhize : 2015-06-24 (Personal Commitments)

Councillor LN Ndlovu : 2015-06-23 (Indisposed)

Councillor S Govender : 2015-06-23 to 26 (Personal Commitments)

Councillor B Fortein : 2015-06-23 to 25 (Municipal Business)

Councillor DG Hoorzuk : 2015-07-24 to 08-02 (Overseas Trip)

Councillor MPN Bhengu : 2015-06-23 to 24 (Personal Commitments)

Councillor P Luthuli : 2015-06-08 to 26 (Indisposed)

Councillor B Shozi : 2015-06-24 to 29 (Indisposed)

Councillor S Hansraj : Request to leave at 10:30 to attend a funeral

Councillor Jane Naidoo : 2015-06-24 (Personal Commitments)

Councillor W Thring : 2015-06-24 (Personal Commitments)

Councillor HE Dube : 2015-06-24 to 26 (Personal Commitments)

Councillor ZP Mthethwa : 2015-06-24 to 25 (Indisposed)

Councillor RJ Crouch : 2015-06-24 (Personal Commitments)

Councillor EL Singh : 2015-06-24 (Personal Commitments)

Councillor M Nojiyeza : 2015-06-24 to 25 (Indisposed)

Councillor S Shange : 2015-06-24 to 25 (Indisposed)

Councillor BA Chili : 2015-06-24 to 25 (Indisposed)

Councillor M Bhengu : 2015-06-24 (Indisposed)

Councillor MC Mnyandu : 2015-06-24 (Indisposed)



8. CONFIRMATION OF MINUTES: Meeting held on 2015-05-27 and Special

Meeting held on 2015-05-27 (Budget)

Councillor MK Ndzimbomvu advised that he had been present at the

above-mentioned meetings but was reflected as being absent. Secretariat was

requested to verify the issue.

(Upon verification it was noted that Councillor MK Ndzimbomvu had not signed the

Attendance Register that had been circulated).

RESOLVED:

That the Minutes of the meeting of the Council and the Minutes of the special

meeting of the Council to consider the 2015/2016 budget, both of which were held

on 2015-05-27, as circulated and taken as read, be and they are hereby confirmed.

9. QUESTIONS IN TERMS OF SECTION 17 OF THE RULES OF ORDER

The following Questions in terms of Section 17 of the Rules of Order were

submitted:-

9.1 Questions submitted by Councillor R Gokool : Harmony Heights Development

(22/7/1/1/3):

The Harmony Heights development on Sindi Nyanisa Walk in Ward 21 has been

under construction for a number of years. A recent visit to the development revealed

that there seem to be some complications with this development. Against this

background, I pose the following questions:-

1. On what date was the contract for this development awarded?

2. What was the expected contract price at the time the contract was awarded?

3. What is the expected completion date of the development?

4. How many units were initially intended to be built?

5. How many units are now intended to be built?

6. Why was the second floor of the units built and then demolished?

7. What is the expected cost of demolishing the second floor structure?

8. Will the second floor structures be built?

9. Have plans been approved by the municipality for development?

10. Is the contractor registered with the Construction Industry Development

Board?

11. Has the development been enrolled with the National Home Builders

Registration Council?

12. Has the development been enrolled with the National Home Builders

Registration Council?



Councillor DG Hoorzuk provided the following respective responses:-

1. The contract was awarded in April/May 2014.

2. The contract amount was R10 621 038-00.

3. The contract will be completed in December 2015.

4. A total of 106 units have been approved as per the plan provision of the area.

5. A total of 106 units will be constructed as per the budget and plan approval.

6. The first floor slabs were built in 1998. During the current construction core tests of

all slabs were undertaken and all slabs were below 10 MPA which was below the

recommended standard requirement of engineering. Our Structural Engineer

recommended demolition and rebuilding in order to ensure that the buildings were

within the required engineering requirements and were fit for human habitation.

7. The estimated amount to demolish and rebuild the first floor slabs, internal load

bearing walls on the ground floor and first floor with repairs to infrastructure to the

completion of the project is estimated at R5 000 000-00.

8. All second floor structures will be re-constructed.

9 Plans were approved previously and the current plans are not deviating from the

approved ones.

10. Yes, the contractor is registered with the CIDB and NHBRC. These are mandatory

requirements for appointment in the Municipality.

11. The development was exempted from registration but has very stringent inspections

by the Engineers, Building Advisors and the Provincial Inspectors.

9.2 Questions submitted by Councillor S Ryley: Lothian Road and Lonsdale Drive:

Traffic Calming Measures and/or enforcement of Traffic By-laws (26/1/2/1):

Lothian Road and Lonsdale Drive form a major thoroughfare from North

Coast (Chris Hani) Road into the greater Durban North area. As such this route

sees major traffic use with many motorists traveling at excessive speeds due a

lack of traffic calming measures and/or adequate enforcement of the traffic

by-laws.

In light of the above I request that the following questions be answered:-

1. How many accidents have been recorded as having happened along these roads

since 01 January 2012 to date by:-

1.1 Metro Police

1.2 eThekwini Emergency Services

1.3 eThekwini Transport Authority (ETA)



2. How many times have these roads been subjected to speed timing since

1 January 2012 to date?

3. Has this road been considered for traffic calming measures since the latest

traffic calming policy was passed?

3.1 If yes, what was the outcome of the technical assessment?

At the request of Councillor B Ntshangase consideration of the above-mentioned

questions was DEFERRED to enable her to obtain answers from the relevant

departments.

9.3 Questions submitted by Councillor J Singh : Manase Report and Yearly Auditor

General’s Reports : Council Employees and Employees of Other State Organs Doing

Business With the eThekwini Municipality (2/9/1/1):

Following the release of the Manase Report and the subsequent Yearly Auditor

Generals Reports, Councillors, Employees of this Council and Employees of

other State Organs were reported to be doing business with the eThekwini

Municipality. The City Manager reserves the right to investigate the awards

with a view to taking disciplinary, criminal and recovery actions were willful

and negligent violations of Supply Chain Management Policies and Municipal

Finance Management Act provisions are observed.

In light of the above I pose the following questions:-

1. Has the City Manager undertaken any disciplinary, criminal or recovery

actions?

2. If yes;

2.1 How many employees had been disciplined?

2.2 How many criminal cases had been opened with SAPS?

2.3 What quantum of recovery actions had been achieved?

3. In respect of 2.1 above, how many investigations in respect to criminal cases had

been finalized by the SAPS and what are the outcomes?

4. To which Committee of this Council does the City Manger submit reports as

alluded to above?

The City Manager provided the following responses:

1. Disciplinary processes have been taken against a number of employees. There is only

one instance where recovery has been recommended. This was due to duplicate

invoices.

2.1 Human Resources could assist with the number of staff disciplined doing business

with the Council.

2.2 No matter was identified that needed criminal investigation.



2.3 R138 000 was recommended for recovery in relation to INV 004/07/2014. The City

Integrity and Investigations Unit (CIIU) is not aware if any amounts have been

recovered as yet.

3. There have been no cases identified for criminal investigation. Please refer to

2.2 above.

4. The reports are submitted to the Municipal Public Accounts Committee (MPAC).

9.4 Questions submitted by Councillor H Biyela : Collection of Refuse and Distribution

of Bin Packets (24/2/2/1):

Due to the difficulties that the community in the INK areas are facing regarding

the collection of refuse, and distribution of bin packets.

It is in this situation I pose the following questions:-

1. How many contractors or Cooperatives are responsible for the collection of dirt

and distribution of bin bags within INK areas?

2. What are their contact details?

3. How many times are the refuse collected and emptied from the skips per week?

4. How many bin packets are supplied per house per week?

5. Which days are the refuse collected and the skips emptied per ward in all INK

areas?

The following respective responses were provided:-

1. 14 Co-operatives are responsible for the collection of dirt and distribution of bin bags

within the INK areas.

2.

Co-Ops Name Name of Administrator Contact Number

Siyathuthuka Tiki 072 359 7095

Siyathuthuka Noma 073 180 9594

Siyathuthuka Bongani 084 290 1941

Ntuzuma D S’busiso Nyambose 073 318 8434

Ezimangweni Alicia Mxoli 083 963 2557

Bester Msholozi 078 770 3090

Nhlungwane/Mzomusha Siphiwe Khoza 078 873 2000

Dube/Bhambayi Sipho 071 677 3597

072 127 1842

Amaoti Part A Qondeni 083 562 6939

Ekuphakameni/Mshayazafe Thulisile

Bheki

084 736 0814

084 208 8008

Namibia/Congo Zandile Kubheka

Smagnele Thusi

083 333 3834

083 425 1837

Amaoti Part A Mam’Ngcobo

Mpume

072 770 6207

082 799 3907

Amaoti Part B Peter Manukuza 083 412 4377

Africa Stop 8 Thulani Mhlungu Lwazi 079 710 1112

082 673 7617



3. Skips are usually serviced once per week. However, if the skip is situated in a busy

area such as main roads and shopping centers it is serviced two or three times per

week.

4. Each house is provided with 2 refuse bags per week.

5. Refuse is collected Monday to Friday in the INK areas.

9.4 Questions submitted by Councillor S Naidoo : Occupation by Council Official of a

Low Cost Home (22/8/4/1):

A senior Municipality official (Senior Librarian) invaded a low cost home (6 Low

Costs Homes) in Plane Street, Tongaat during September 2014 and continues to

occupy the low cost home, illegally whilst there is a host of deserving individuals

that remain homeless The Housing management – Phoenix handed eviction notices

to the official which was ignored and subsequent attempts by the legal department to

mediate the eviction remained futile. The housing official than instructed legal to

proceed with a high court application for the eviction. The matter was set down for

trail when legal received instruction from the housing official to withdraw the matter

as instructed by the Head of Housing. Written correspondence to the City Manager

and the Head : Housing requesting reasons for the withdrawal of the High Court

Application for an eviction order remains unanswered.

1. Why was the application to the High court for the eviction order against

Kumari Padayachee (also known as Vigie Padayachee) withdrawn when the

affidavit submitted by the housing official clearly confirms that she is in

violation?

2. Who is responsible for the legal costs that have incurred thus far in favour of

Advocate Bhagwandeen who was instructed to act on behalf of the

Municipality?

3. Is it the Cities intention to regularize the official as a legal tenant of the Low

Cost Home?

4. Has any disciplinary proceedings been instituted against the official from

bringing the City into disrepute and for the expenses incurred by the City

thusfar?

As the above-mentioned questions involved a staff member such matter was

WITHDRAWN from the agenda and was referred to the City Manager for attention.



FIRST REPORT OF THE EXECUTIVE COMMITTEE (Council Meeting held on Wednesday, 2015-05-27)

1. SEMINAR 3 OF THE DIRECTOR DEVELOPMENT PROGRAMME: GOOD

GOVERNANCE FOR SUSTAINABLE SERVICE DELIVERY (2/10/1/1/3 &

14/1/1)

(Page 46)

The City Manager presented a report comprising details of the Seminar to be held as

part of continuous professional development in a bid to uphold the principles of good

governance and achieve clean administration. He then circulated a page comprising

financial details for this Seminar and advised that the Executive Committee was

requested to give approval in this regard.

Given the budget allocated for Presenters, the Executive Committee Member

Mncwango enquired the exact rate to be paid to them since they had already been

confirmed in the programme included in the agenda. In response, it was advised that

this was budget provision to cater for any expense that might be incurred

for the Seminar.

Accordingly,

COMMITTEE RECOMMENDS:

1.1 That Council supports the initiative driven by the eThekwini Municipality Audit and

Risk Assurance Services (EMARAS) in partnership with the Municipal Institute of

Learning (MILE) and the Corporate Human Resources Unit to host Seminar 3 of the

Director Development Programme intended at advancing the principles of good

governance and achieving clean administration, which Seminar is to be attended by

the political and administrative leadership on 10 June 2015 at the Moses Mabhida

Stadium under the theme, “deepening understanding and cultivating common ethos

in translating good governance for sustainable service delivery whilst leading in a

highly regulated environment: challenges and opportunities."

1.2 That Council approves expenditure in the amount of R207 224.00 (Two Hundred and

Seven Thousand Two Hundred and Twenty Four Rand Only) to be incurred for the

Seminar, as per the details contained in the table below:-

NO. COST ITEM ESTIMATED COSTS

1. Venue Hire inclusive with breakfast at Moses Mabhida and

Networking Lunch

R127 224.00

2. Travelling costs including accommodation R15 000.00

3. Token of appreciation R5 000.00

4. Where necessary presentation fee R50 000.00

5. Printing fees R10 000.00

Seminars and Training Vote Number: 10471.10382

FC No.: 12/31

Costs to be shared amongst EMARAS, MILE and Corporate Human Resources.



As some Councillors were not in support of the above recommendations of the

Executive Committee the matter was put to the vote. With 162 Councillors

present, 122 Councillors (ANC – 97, MF – 7, NFP – 7, IFP – 6, ACDP – 1,

TA - 1, COPE – 1, APC – 1 and IND – 1 ) voted in favour and 40 Councillors

(DA) voted against the recommendations. There were no abstentions recorded.

The above-recommendations of the Executive Committee were, by the majority

vote, ADOPTED.

2. REQUEST FOR THE ACQUISITION OF LAND TO REGULARISE

ENCROACHMENT OF THE PORTION OF TONGAAT MARKET (17/2/1//1/2)

(Page 65)

With the City Manager having advised that the privately owned land to be acquired

was the only one available for the purposes of a market,


2.1 That, in order to regularise encroachment of the portion of Tongaat Market building

over privately-owned Erf 2065 Tongaat, authority be granted for the Head: Real

Estate to acquire the portion of the market building, as reflected on the existing

Plan SJ 4647/7.

2.2 That subject to the approval of .1 above, it be noted that the approval of the Bid

Adjudication Committee will be sought to deviate from the Supply Chain

Management Regulations to negotiate directly with the property owner for the

acquisition of the property in question using Section 36 (1)(a)(ii) of the Supply Chain

Management Regulations.

2.3 That in the event of negotiations being unsuccessful the Head: Real Estate

be authorized to expropriate the affected property.

2.4 That in the event of negotiations being successful, the City Manager record reasons

for the deviations and report at the next meeting of the Council and include the

reasons as a note to the Annual Financial Statements in terms of Section 36(2) of the

Municipal Supply Chain Management Regulation.

REFERENCE BACK

In terms of Rule of Order 20(10) Councillor WJM Burne, seconded by

Councillor NL Graham, moved as a procedural motion that the above

recommendations of the Executive Committee be referred back to that

Committee and/or to the Economic Development and Planning Committee for

further consideration on whether the Municipality was not in fact and in law

already the owner of the land in question on the basis of prescription, having

occupied the land openly, and as if it was the owner for more than thirty (30)

years.



NOT CARRIED

As some Councillors were not in favour of the Reference Back the matter was

put to the vote. With 166 Councillors present 50 Councillors (DA – 42, IFP – 6,

COPE – 1 and IND - 1) voted in favour and 107 Councillors (ANC – 98, MF – 7,

ACDP – 1 and TA - 1) voted against the recommendations. There were 9 (NFP –

8 and APC – 1) abstentions recorded.

The above-mentioned motion to refer back the aforesaid recommendations of

the Executive Committee was NOT CARRIED.

Thereafter the recemmendations of the Executive Committee relative hereto

was put to the vote. With 166 Councillors present 124 Councillors (ANC – 98,

MF – 7, NFP – 8, IFP – 6, ACDP – 1, TA - 1, COPE – 1, APC - 1 and IND – 1)

voted in favour and 42 Councillors (DA) voted against the recommendations.

There were no abstentions recorded.

The above-mentioned recommendations of the Executive Committee were, by

the majority vote, ADOPTED.

The DA requested a division and their names are recorded hereunder:-

Councillors GDA Pullan, LM Meyer, R Gokool, TP Collins, ZM Mncwango,

S Hoosen, HU De Boer, HP Biyela, S Ngema, P Naidoo, P Davis, SV Asbury,

AR Mitchell, WJ Burne, M Johnson, A Beetge, SE Mhlongo, AD Snyman,

SNL Mshengu, J Singh, RJ Lefevre, D Ganesh, DL Du Bois, I Cassimjee,

JC Van den Berg, NC Nofeketa, GM Noyce, NL Graham, CB Langa,

SR Naidoo, BD Prinsloo, BA Sutcliffe, S Ryley, RD Macpherson, K Pillay,

HN Ndlovu, AM Coen, KR Pillay, BA Mthembu, D Pillay, B Singh and

DR Pillay.

3. REPORT OF ECONOMIC DEVELOPMENT AND PLANNING COMMITTEE:

MEETING HELD ON 2015-05-07

(Page R1)

3.1 Request for Authority to Adopt the Durban Climate Change Strategy (32/2/2):

(Page 10 : Economic Development and Planning Committee - Agenda 2015-05-07)


3.1.1 That the Durban Climate Change Strategy attached to the report by the City Manager

dated 2014-10-21 be adopted for implementation, which strategy seeks to create an

enabling environment for the City to mitigate Climate Change challenges under the

following themes: water; sea level rise; biodiversity; food security; health; energy;

waste and pollution; transport; economic development; knowledge generation and

understanding.

3.1.2 That the Executive Committee notes that the costs of implementing the strategy will

be determined by various Units responsible for responding to the identified themes as

and when implementation occurs.



With Councillor J Naidoo of the ACDP dissenting, the above-mentioned

recommedations of the Executive Committee were, by majority, ADOPTED.

4. REPORT OF HUMAN SETTLEMENTS AND INFRASTRUCTURE

COMMITTEE: SPECIAL MEETING HELD ON 2015-04-22

(Page R2)

4.1 Work in Excess of R500 000: Electrical Reticulation : Nkwali Phase 1: Drawing

Number 2529970 (27/2/R):

(Page 77 : Human Settlements and Infrastructure Committee - Agenda 2015-05-05)


That authority be granted for the Head: Electricity to incur expenditure estimated at

R2 965 000.00 (Two Million Nine Hundred and Sixty Five Thousand Rand Only)

through the normal goods and services procurement processes, in order to provide a

supply of electricity to the 132 new customers at the Nkwali rural area,

by commissioning thirteen new pole transformers, upgrading existing and

constructing new overhead reticulation.

Project Number EFAFMLOH: Account Code 80035 : R2 965 000.00

Provided in the 2014/2015 Capital Estimates

FC 79/CA1551

ADOPTED.

4.2 Proposed Acquisition and Registration of a Temporary Right of Way Servitude for

Access to 132 kV Hillcrest - Waterfall Towers Located on Halkirk Farm

(17/2/1/1/2):



That authority be granted for the Head: Real Estate to negotiate for the acquisition or

expropriation, if necessary, of the temporary right of way servitude required for

access to 132kV towers situated over portions 485 and 486, both of Erf 337 of Farm

Albania No. 957 per SJ Plan 4628/1.

Account Code 80002 R231 000.00 Provided in 2015/2016

FC No.: 79CA1316

ADOPTED.

4.3 Establishment of a Revised Restructuring Zone in eThekwini Municipality for Social

Housing Projects (21/8/3 & 22/7/1/1/2):


The Executive Committee noted that during the meeting of the Human Settlements

and Infrastructure, 28 Councillors present, Councillors (ANC - 17, DA – 07,

NFP - 01, MF - 01 and Independent - 01) voted in support of the recommendations

and 01 IFP Councillor abstained. The recommendations were, by the majority vote,

adopted.



During discussion of the item at the Executive Committee meeting, the Executive

Committee Member Nkosi recorded his abstention until he obtains feedback from his

party on this matter. The Executive Committee Member De Boer expressed

appreciation that there was an undertaking to involve other role players for social

housing projects. He was of the view that this would provide for healthy competition

and ultimately result in getting good quality product.


4.3.1 That authority be granted to adopt the revised Restructuring Zone for Social Housing

projects in eThekwini Municipality as it aligns with the Dense Urban and Suburban

Integrated City Development Grant (ICDG) Zones, it being noted that the objective

of the ICDG is to support the development of more inclusive, liveable, productive

and sustainable urban built environments.

4.3.2 That subject to the adoption of .1 above, authority be granted for the Head: Human

Settlements to enter into any relevant agreements and/or Memorandum of

Understanding with the National and/or Provincial Departments of Human

Settlements as well as with any other designated role-players as identified in order to

effect the above.

The City Manager advised of the need to amend recommendation 4.3.2 above

by the deletion of the words and designation “for the Head : Human

Settlements” and by the substitution therefor of the words and designation “to

the City Manager” to read as follows:

“4.3.2 That subject to the adoption of .1 above, authority be granted to

the City Manager to enter into any relevant agreements and/or

Memorandum of Understanding with the National and/or Provincial

Departments of Human Settlements as well as with any other designated

role-players as identified in order to effect the above.”

Thereafter, it was

RESOLVED:

4.3.1 That authority be granted to adopt the revised Restructuring Zone for Social

Housing projects in eThekwini Municipality as it aligns with the Dense Urban

and Suburban Integrated City Development Grant (ICDG) Zones, it being

noted that the objective of the ICDG is to support the development of more

inclusive, liveable, productive and sustainable urban built environments.

4.3.2 That subject to the adoption of .1 above, authority be granted to the

City Manager to enter into any relevant agreements and/or Memorandum of

Understanding with the National and/or Provincial Departments of Human

Settlements as well as with any other designated role-players as identified in

order to effect the above.

4.4 Project Authority : Upgrading of TRK 84143- Adams Mission in Ward 96 (25/4/2):



That authority be granted for the Head: Engineering to upgrade Road TRK 84143 in

Ward 96 using funds previously allocated in the 2014/15 and 2015/16 financial years



to upgrade Shozi Road in Adams Mission since this Road has already been upgraded

to an asphalt surface by the Roads and Stormwater Maintenance Department.

Vote : P9464 – 1.72510.49300 R2 000 000.00 (Provided 2014/2015 declared

as Savings)

R2 351 000.00 (Provided 2015/2016)

R2 000 000.00 (To be provided 2015/16 via

adjustment budget)

FC No.: 49/C072

ADOPTED.

5. REQUEST FOR AUTHORITY TO ATTEND SOUTHERN AFRICAN

EMERGENCY SERVICES INSTITUTE (SAESI) TOURNAMENT: NETBALL,

SOCCER AND VOLLEYBALL (13/7)

(Page L3)

The Deputy City Manager: Community & Emergency Services made reference to the

approval given for the Fire and Emergency Unit Sports Team to participate in the

SAESI Tournament from 15 to 16 May 2015 in Cape Town. He then advised that

due to the various codes of sport being played in different areas of Cape Town and

taking cognizance of the distance between venues, the Unit was now requesting

authority to utilise Council’s mini bus taxis (two quantums and a sprinter), one caddy

vehicle and trailer, rather than a Council bus, for the conveyance of Municipal

personnel to and from the event. In that regard, he made reference to the Executive

Committee minutes dated 2015-04-28, relative to the above matter and requested that

recommendation 8.4 which made reference to the use of Council bus should be

substituted with the following recommendation, as contained in the report tabled

in this meeting:-

"That authority be granted to use Council vehicles, i.e. three (3) minibus taxis

(two quantums and a sprinter), one (1) one caddy vehicle and a trailer, out of

Province for the conveyance of Municipal personnel to and from the event."

The Committee supported the amendment, it being noted that there were no changes

in financial implications and that the transport to be used would still be sourced from

the Municipal fleet.

Accordingly,


That, in view of the changes in the nature of transport to be used to transport the Fire

& Emergency Unit Sports Team to the Southern African Emergency Services

Institute Tournament in Cape Town, recommendation 4.1 contained in the Council

minutes dated 2015-04-30 and which makes reference to the use of the Municipal

bus, be replaced with the following recommendation: "That authority be granted to

use Council vehicles, i.e. three (3) minibus taxis (two quantums and a sprinter), one

(1) one caddy vehicle and a trailer, out of Province for the conveyance of Municipal

personnel to and from the event."

ADOPTED.



6. REPORT OF THE GOVERNANCE AND HUMAN RESOURCES COMMITTEE:


(Page R1)

6.1 Request by Government Department to Lease Accommodation at Certain Sizakala

Centres (17/2/2/5/2):

(Page 71 : Governance and Human Resources Committee - Agenda 2015-05-07)

The Committee expressed the view that all other Sizakala Centres should be afforded

a similar opportunity to enter into lease agreements with Government Departments to

enhance service delivery.

With the Executive Committee being in concurrence,


6.1.1 That authority be granted for the Head: Real Estate to enter into lease agreements by

private treaty with the Departments of Social Welfare; Home Affairs; and South

African Social Security Agency (SASSA) for use of premises at Sizakala Centres in

Lamontville; Chesterville; and Tongaat, for such periods as may be deemed

necessary to enable the aforementioned Departments to facilitate service delivery

specified hereunder:-

NAME OF

DEPARTMENT

NAME OF

SIZAKALA

CENTRE

PURPOSE FOR WHICH THE

ACCOMMODATION IS REQUIRED FOR

Department of Social

Development

Lamontville To erect a park home to provide social services

to the local community.

Chesterville To erect a park home to provide social services

to the local community.

Thongathi (Tongaat) To provide social services to the local

community.

SASSA Lamontville To erect a park home for payment of social

grants.

Home Affairs Mpumalanga To provide all relevant services provided by

Home Affairs.

6.1.2 That, subject to the adoption of .1 above, authority be granted for the Head: Real

Estate to sign all documentation on behalf of the Municipality in respect of the lease

agreements to be entered into with Government Departments.

With the heading having been AMENDED by the deletion of the word

“Governance” and by the substitution therefor of the word “Government” the

above-mentioned recommendations of the Executive Committee were

ADOPTED.

6.2 Durban Communications and Marketing Exchange (12/5/R):



6.2.1 That authority be granted for the Head: Communications to implement the Durban

Communications and Marketing Exchange including:



6.2.1.1 King Shaka International Airport Branding Project for a partnership with the Airports

Company of South Africa which entails installing eThekwini Municipality branding

to give the airport a truly Durban feel at no cost.

6.2.1.2 Quarterly Durban Communications and Marketing Exchange think tank sessions to

provide a platform for the Municipality's key Departments in the communication and

marketing field; municipal entities together with communications, marketing and

corporate social investment professionals; business development and private projects

promoters to discuss; strategise; and plan eThekwini's overall communications and

marketing efforts especially when it comes to informational and social marketing.

6.2.1.3 Durban Joint Marketing Forum which is the initiative of the eThekwini Municipality;

Tongaat Hulett Development; and Trade and Investment KwaZulu-Natal aimed at

coherent communication and marketing efforts.

6.2.1.4 Clean and Maintain My City Programme which is an integrated Municipal

programme aimed at tackling challenges such as litter; illegal dumping; by-law

infringements; homelessness; loitering; illegal occupation of open spaces; inner city

decay; illegal business operations in the CBD and residential areas; derelict; and

illegally-occupied building.

6.2.1.5 Durban Dialogue - Let's Talk Durban which is an online/offline communication

initiative of the Municipality to drive the economic and social development agenda

so that the eThekwini residents are aware and involved on issues which affect them.

6.2.2 That authority be granted for the Head: Communications to incur expenditure in the

amount of R170 000.00 (One Hundred and Seventy Thousand Rand Only) to

undertake the project referred to in .1 to .5 above.

Cost Estimates:-

Budget Item Cost

Venue hire for 100 people (Including refreshments) R120 000.00

Multimedia Presentation R50 000.00

Total Cost R170 000.00

Vote No.: 10386.04484




TA - 1, COPE – 1, APC – 1 and IND – 1) voted in favour and 39 Councillors

(DA) voted against the recommendations. There were no abstentions recorded.


vote, ADOPTED.

6.3 Report for Authority: the Adoption and Approval of the Durban Climate Change

Strategy (32/2/2):


The Governance and Human Resources Committee considered the above mentioned

report of the City Manager dated 2014-10-21, the purpose of which was to initiate

the process of implementing the responses outlined in the abovementioned strategy.




6.3.1 That the Durban Climate Change Strategy attached to the report by the City Manager

dated 2014-10-21, be adopted for implementation, which strategy seeks to create an

enabling environment for the City to mitigate Climate Change challenges under the

following themes: water; sea level rise; biodiversity; food security; health; energy;

waste and pollution; transport; economic development; knowledge generation;

and understanding.

6.3.2 That the Executive Committee notes that the costs of implementing the strategy will

be determined by various Units responsible for responding to the identified themes as

and when implementation occurs.

ADOPTED.

6.4 eThekwini Municipal Ward Committee Skills Programme Close-Out Report (3/6/1):



6.4.1 That the Graduation Ceremony of 630 competent Ward Committees members who

have completed the Ward Committee Skills Programme, be approved.

6.4.2 That the Recognition of Prior Learning (RPL) assessment be performed for new

intake so as to save money on certain modules.

6.4.3 That the training of outstanding Ward Committee Members, be considered.

6.4.4 That strict non-attendance sanctions be established to curb wasteful expenditure due

to poor attendance.

6.4.5 That authority be granted for the Head: Skills Development to consider a centralised

coordination and accountability.

MOTION TO AMEND

In terms of Rule of Order 20(4), Councillor HP Biyela, seconded by Councillor

H De Boer, moved as a procedural motion that the above-mentioned

recommendations of the Executive Committee be amended by the deletion of

recommendation 6.4.3 on the basis that the term of Ward Committee Members

was almost expiring and the cost for the training would be deemed as wasteful

expenditure.

NOT CARRIED

As some Councillors were not in support of the amendment the matter was put

to the vote. With 160 Councillors present 48 Councillors (DA – 41 and MF - 2)

voted in favour and 112 Councillors (ANC - 92, NFP – 7, IFP – 8, ACDP – 1,

TA - 1, COPE – 1, APC – 1 and IND – 1) voted against the reference back.


The motion to amend was NOT CARRIED.

Discussion thereafter reverted to the substantive motion when the above

recommendations of the Executive Committee were unanimously ADOPTED.



6.5 Turnaround Strategy for the Filling of funded Vacant Posts (2014/2015) (11/1/2):



That Council notes the initiative by the Deputy City Manager: Corporate & Human

Resources as per the action plan contained in her report dated 2015-04-07, which

basically detailed the recruitment drive, to address delays in filling vacant funded

posts to eliminate high vacancy rate within the eThekwini Municipality.

NOTED.

6.6 Distribution of Ezasegagasini Metro (12/3/1/3):



6.6.1 That the report by the Head: Communications dated 2015-03-17 relative to the new

distribution of eZasegagasini Metro Newspaper to the community using

Co-operatives, be approved.

6.6.2 That the Head: Communications be granted authority to incur a total cost of

R4.8 Million per annum to cover cost for Co-operatives, Small and Medium

Enterprises at an amount of R3.8 Million and newspaper collection, delivery and

monitoring facilitator at an amount of R1 Million.

(Vote : 10377.06550; F.C. No.10)




TA - 1, COPE – 1, APC – 1 and IND – 1 ) voted in favour and 40 Councillors

(DA) voted against the recommendation. There were no abstentions recorded.


vote, ADOPTED.

6.7 Purchase of Additional Radio Programme Slots (12/2):


At the Executive Committee level, the attention of the Committee was drawn to the

fact that the rates for slots were informed by the extent of coverage of the radio

station. Notwithstanding the rates, emphasis was put on the importance of keeping

the local communities abreast of the developments within the City, in particular, as

they pertain to service delivery. Confirmation was given that the budget for Ukhozi

FM represented a series of 5 minutes slots.


That authority be granted for the Head: Communications to incur expenditure in the

amount of R2 055 000.00 (Two Million and Fifty Five Thousand Rand Only) to

purchase new additional Radio Programme Slots in the mainstream media to

publicize the Municipality's service delivery achievements and projects.



Radio Station Programme Duration Budget

Ukhozi Radio FM Jabulujule

Ezingasoze zabuna

5 minutes R395 000.00

R160 000.00

Lotus Radio FM Around the City - biweekly 5 minutes

Tuesday and

Thursday

R290 000.00

Gagasi 995 Radio

FM

Indaba 1 x monthly

Weekly talkshow x 3 per month

60 minutes

30 minutes

R276 000.00

R455 000.00

Outside Broadcasting

Facility

Mayoral outreach budget hearing:-

Live broadcast of Mayor's Budget

Speech/State of the City address

Community radio

R480 000.00

TOTAL R2 055 000.00

(Vote No.: 10385.09019)



present, 109 Councillors (ANC – 89, MF – 7, IFP – 8, ACDP – 1, TA - 1, COPE

– 1, APC – 1 and IND – 1 ) voted in favour and 48 Councillors (DA – 40 and

NFP – 8) voted against the recommendation. There were no abstentions

recorded.


vote, ADOPTED.

6.8 South Durban Basin ABM Programme (2/3/2/1/2):



6.8.1 That authority be granted for the Head: Sizakala Customer Service Centre to

implement the South Durban Basin ABM Project including:-

6.8.1.1 Small Business Development Project Peace Building and Non-racism Programme to

empower and enable people, particularly youth and women, through popular

education and participatory development, to take control of their own lives in the

struggle for true freedom and justice and two and half days residential workshop

where a variety of method will be used to workshop youth.

6.8.1.2 Establish a Greater Isipingo Creche Forum based on the good practice of the

Wentworth and Lamontville models; thereby promoting capacity building of child

minders, sharing of best practices and collective action while at the same time

allowing for the provision of mentoring and guidance to enable the optimal

functioning of each individual Forum.

6.8.1.3 South Durban Basin ABM will be embarking on an "Adopt A Spot Campaign" in

partnership with Durban Solid Waste; Parks; and Roads and Stormwater Department

to eradicate enormous illegal dumping on open spaces/verges.



6.8.1.4 South Durban Basin has partnership with eThekwini Water and Sanitation

Department and Provincial Water Affairs to host a workshop targeting industries;

business; and community structure in the area to educate and empower all

stakeholders about the importance of conserving water, as well as to share National

and Provincial mandates on water conservation and pollution.

6.8.2 That authority be granted for the Head: Sizakala Customer Service Centre to incur

expenditure in the amount of R362 850.00 (Three Hundred and Sixty Two Thousand

Eight Hundred and Fifty Rand Only) to undertake the project referred to in .1 to .4

above.

(Vote No.: 12890.08485; R362 850.00 (Provided in 2014/15 budget); F.C. 29/10)

ADOPTED.

6.9 Organisation and Establishment of the Expenditure Unit (4/1/1/2/5):



6.9.1 That the Organisation and Post Establishment in its entirety as reflected in Annexure

"A" of the report by the Head: Organisational Development and Change

Management dated 2015-04-15, be abolished.

6.9.2 That authority be granted for the organization and establishment of the Expenditure

Unit in line with the Institutional Review Framework adopted by Municipal Council

on 31 July, 2012 as reflected in Annexure "C" of the report by the Head:

Organisational Development and Change Management dated 2015-04-15 which new

structure will give the following benefits to the Municipality:

● All Clusters within the Municipality will have readily available departmental

accounting services which will enhance effectiveness and efficiency;

● The Finance Cluster will have absolute control over its core functions as a

result of recommended solid line to functions which were located at

Electricity Unit;

● The creation of an internal Tax Office will eliminate the need for the

utilization of outside service providers;

● The management of funds for major projects like Cornubia housing projects

will be managed internally thereby relieving Project Managers from taking

control of the funds at a very high risk; and

● Each Cluster will have a dedicated Deputy Head for departmental accounting

at a strategic level.

6.9.3 That authority be granted for the creation of the recommended organisation and post

establishment of the Expenditure Unit at an additional expenditure of

R16 317 058.00 (Sixteen Million Three Hundred and Seventeen Thousand and Fifty

Eight Rand Only) with funds to be allocated over three years in line with Medium

Term Expenditure Framework.

ADOPTED.



6.10 King Shaka International Airport Branding (12/5/2):



6.10.1 That authority be granted for the Head: Communications to implement the King

Shaka International Airport Branding including:

6.10.1.1 eThekwini Municipality and the Airports Company of South Africa (ACSA) to enter

into discussions for the City branding to be introduced at the King Shaka

International Airport in order to give the airport a truly "Durban" look and feel.

6.10.1.2 eThekwini Municipality will produce, mount and remove the branding as and when

required at own cost.

6.10.1.3 Sites to be branded include the air-control tower; Airports Company of South Africa

Headquarters; under the overhead bridge; rails at domestic and international arrivals;

and billboard en route to the freeway.

6.10.1.4 To facilitate a Memorandum of Understanding (MOU) between ACSA and

eThekwini Municipality as contained in the report by the Head: Communications

dated 2015-04-08.

6.10.1.5 To proceed with the invitation of suitable qualified service providers for

printing/production and rigging (mounting/installation) of the branding, it being

recorded that the creative concept of the look and feel will be done by the City's

existing creative and design service provider.


amount of R3 068 863.00 (Three Million and Sixty Eight Thousand Eight Hundred

and Sixty Three Rand Only) to be made available in the 2014/2015 financial year

and R1 825 000.00 (One Million Eight Hundred and Twenty Five Thousand Rand

Only) to be made available in the 2015/2016 financial year.

(Vote No.: 10386. 04484)

The Council noted the amendment in recommendation 6.10.1.3 above by the

deletion of the words “air-conditioner tower” and by the substitution therefor of

the words “air-control tower”.

During discussion of the aforesaid recommendations some Councillors were not

in support of the above recommendations of the Executive Committee on the

basis that the cost of the branding in question was excessive. The matter was

thereafter put to the vote. With 161 Councillors present, 120 Councillors

(ANC – 93, MF – 7, NFP – 8, IFP – 8, ACDP – 1, TA - 1, APC – 1 and IND – 1 )

voted in favour and 41 Councillors (DA) voted against. There were no

abstentions recorded.

The above recommendations of the Executive Committee, as amended, were, by

the majority vote, ADOPTED.



6.11 Request to Undertake Study Tour to the City of Cape Town and the City of

Johannesburg to Learn and Share Knowledge and Experiences:

(Page L1 : Governance and Human Resources Committee - Agenda 2015-05-07)

With 21 Councillors present, Councillors (ANC - 14, MF - 01 and TA - 01) voted in

support of the recommendations and 04 - DA Councillors and 01 - IFP Councillor

voted against the recommendations.

The recommendations were, by the majority vote, adopted.



amount of R99 400.00 (Ninety Nine Thousand Four Hundred Rand Only) to

undertake a study tour to the City of Cape Town and the City of Johannesburg to

learn, share knowledge and experiences in relation to communications and marketing

function for the six delegates departing 21 June 2015 and returning 27 June 2015.

6.11.2 That authority be granted for the Head: Communications in consultation with the

Chairperson of the Governance and Human Resources Committee to finalise names

of delegates to undertake a study tour.

Vote No.: 10376.11960 FC No.: 06/03

In view of the study tour to Cape Town being cancelled the Council noted the

need for recommendation 6.11.1 above to be amended by the deletion of the

words and place “the City of Cape Town and” in the third line thereof and by

the deletion of the words and dates “departing 21 June 2015 and returning

27 June 2015” in the last line thereof to read as follows:-

“6.11.1 That authority be granted for the Head: Communications to incur

expenditure in the amount of R99 400.00 (Ninety Nine Thousand

Four Hundred Rand Only) to undertake a study tour to the City of

Johannesburg to learn, share knowledge and experiences in relation

to communications and marketing function for the six delegates.”

Discussion thereafter ensued and as some Councillors were not in support of the

above recommendations of the Executive Committee, the matter was put to the

vote. With 164 Councillors present, 112 Councillors (ANC – 95, MF – 7, IFP – 8,

TA - 1 and IND – 1 ) voted in favour and 52 Councillors (DA – 42, NFP – 7,

ACDP – 1, COPE – 1 and APC – 1) voted against. There were no abstentions

recorded.

It was thereafter, by majority vote

RESOLVED:

6.11.1 That authority be granted for the Head: Communications to incur expenditure

in the amount of R99 400.00 (Ninety Nine Thousand Four Hundred Rand Only)

to undertake a study tour to the City of Johannesburg to learn, share knowledge

and experiences in relation to communications and marketing function for the

six delegates.



6.11.2 That authority be granted for the Head: Communications in consultation with

the Chairperson of the Governance and Human Resources Committee to

finalise names of delegates to undertake a study tour.

(Vote No.: 10376.11960; F.C. No.: 06/03)









DR Pillay.

6.12 Presentation on the Draft Budget for 2015/2016 Financial Year:

(Presentation - LOT: Governance and Human Resources Committee - Agenda

2015-05-07)


That the Draft Budget for 2015/2016 Financial Year presented by the Project

Executive - Departmental Account : Finance, relative to the Governance and Human

Resources Committee, be noted.

NOTED.

7. REPORT OF THE COMMUNITY AND EMERGENCY SERVICES

COMMITTEE: MEETING HELD ON 2015-05-18

(Page R9)

7.1 Major Hazard Installation : ICI Dulux, 1 Paint Place, Dickens Road, Umbogintwini,

Durban, KwaZulu-Natal (30/2/5/1):

(Page 9 : Community and Emergency Services Committee - Agenda 2015-05-18)

The Committee noted that the risk assessment, on behalf of ICI Dulux, had been

submitted to eThekwini Municipality in accordance with the provisions of the Major

Hazard Installation Regulations framed under the Occupational Health and Safety

Act 85 of 1993 and that the report thereon was subsequently considered by the

Municipality's Technical Task Team on Major Hazard Installations which resulted in

no reason being offered to advise against its acceptance and the continued operation

of the company in accordance with the provisions of the assessment.

As the Committee was in concurrence with the recommendations contained therein,


That having concurred with the conclusion of the Major Hazard Installation (MHI)

Technical Task Team that there is no valid reason to advise against the operation of

the existing MHI at ICI Dulux, situated at 1 Paint Place, Dickens Road,

Umbogintwini, Durban, in accordance with the Major Hazard Regulations, the

operation of the existing MHI thereat, be approved.

ADOPTED.



7.2 Major Hazard Installation : Reatile Gaz Mthoko Mkhize Drive (Main Road),

Hammarsdale, KwaZulu-Natal (30/2/5/1):

(Page 11: Community and Emergency Services Committee - Agenda 2015-05-18)

It was noted that the risk assessment, on behalf of Reatile Gaz (Pty) Ltd, had been


Hazard Installation Regulations framed under the Occupational Health and Safety

Act 85 of 1993 and that the report thereon was subsequently considered by the








the existing MHI at Reatile Gaz (Pty) Ltd, located at Portion 1 of Lot Sterkspruit,

150 MR385, along Mthoko Mkhize Drive (Main Road), Hammarsdale,

KwaZulu-Natal, in accordance with the Major Hazard Regulations, the operation of

the existing MHI thereat, be approved.

ADOPTED.

7.3 Major Hazard Installation : 3G Projects, 4 Champak Place, Marianridge, Pinetown

(30/2/5/1):


The Committee was advised that the risk assessment, on behalf of 3G Projects, had

been submitted to eThekwini Municipality in accordance with the provisions of the

Major Hazard Installation Regulations framed under the Occupational Health and

Safety Act 85 of 1993 and that the report thereon was subsequently considered by the







Technical Task Team that there is no valid reason to advise against permitting the

erection of the MHI at 3G Products, situated at 4 Champak Place, Marianridge,

Pinetown, in accordance with the Major Hazard Regulations, the erection of the MHI

thereat, be approved.

ADOPTED.



7.4 Major Hazard Installation : Total Lubricant Manufacturing Plant, Island View,

Durban, KwaZulu-Natal (30/2/5/1):


The Committee was advised that the risk assessment, on behalf of Total Lubricant

Manufacturing Plant, had been submitted to eThekwini Municipality in accordance

with the provisions of the Major Hazard Installation Regulations framed under the

Occupational Health and Safety Act 85 of 1993 and that the report thereon was

subsequently considered by the Municipality's Technical Task Team on Major

Hazard Installations which resulted in no reason being offered to advise against its

acceptance and the continued operation of the company in accordance with the

provisions of the assessment.





the existing MHI at Total Lubricant Manufacturing Plant, situated at Island View,

Durban, KwaZulu-Natal, in accordance with the Major Hazard Regulations, the

operation of the existing MHI thereat, be approved.

ADOPTED.

7.5 Inanda Heritage Route : Authority to Engage in Land Acquisition by Lease

Agreement for the Upgrade of the Lucy Lindlay Heritage Interpretation Centre at

Inanda Seminary School (17/2/1/1/3):


Having considered a report by the City Manager dated 2015-03-27 in the above

regard, the purpose of which was to seek approval to enter into a Lease Agreement

with the United Congregational Church of Southern Africa - KwaZulu-Natal

(Inanda Seminary School) for the upgrading of the Lucy Lindlay Interpretation

Centre, the Community and Emergency Services Committee,


7.5.1 That portion of the resolution in the item Inanda Heritage Route : Authority to

Engage in Land Acquisition by Lease Agreement for the Upgrade of Various

Tourism Infrastructure and Heritage Interpretation Centres, which makes reference to

the United Congregational Church of Southern Africa (Inanda

Seminary) - KwaZulu-Natal and which was adopted by Council on 2012-10-31, be

rescinded.

7.5.2 That the Head : Real Estate be authorised to conclude and sign lease agreements with

the owners of the properties as indicated on the schedule below:-

Owner Description

of property

Premises

Extent

require

Plan no Proposed

use

Commencing

rental

United

Congregational

Church of Southern

Africa - KwaZulu-

Natal

Rem of Erf

699 Inanda

Glebe

Inanda

Seminary

191 sqm SJ46 08/8 Interpretatio

n

Centre

R107 564

p/annum



7.5.3 That the lease shall be for a period of 3 years commencing on the commencement

date at the rental as indicated in the schedule above and escalating at 9% per annum

for the ensuing 2 years with rights of renewal.

Project No. 15602.09960 R107 564, 00 (Provided 2014/15)

R117 244, 76 (Provided 2015/16)

R127 796, 79 (Provided 2016/17)

FC No. 34/275

ADOPTED.

7.6 Draft Operating and Capital Budgets 2015/16 MTREF : Community and Emergency

Services Cluster (7/1/2/1):

(Presentation: Community and Emergency Services Committee - Agenda

2015-05-18)

The Committee received a presentation on the Draft Operating and Capital Budgets

in the above regard, following which brief discussion ensued on, inter alia, the under

mentioned issues:-

● Staff overtime

● Verge maintenance and grass cutting in open spaces

● Medication at clinics

● Under-spending of the Budget in previous years


That the Draft Operating & Capital Budgets 2015/16 MTREF for Community &

Emergency Services Cluster be approved.

NOTED on the basis that the 2015/16 budget was adopted by Council on

2015-05-27.

7.7 Operating Budget 2015/16 : Metro Police (7/1/3/1)


2015-05-18)

Whilst it was noted that the Metro Police Department reported directly to the

City Manager, the activities of that Department fell within the ambit of the

Community and Emergency Services Committee.


That the Operating Budget 2015/16 for Metro Police. be approved.


2015-05-27.



8. REPORT OF THE ECONOMIC AND DEVELOPMENT COMMITTEE:


(Page R13)

8.1 Draft operating and Capital Budgets: 2015/2016: Economic Development and

Planning:

(Presentation: Economic and Development Committee - Agenda 2015-05-15)

The Committee received a presentation on the Draft Operating and Capital Budgets

in the above regard, following which brief discussion ensued thereon.


That the draft Operating and Capital Budgets 2015/2016 for the Economic

Development and Planning Cluster, be noted.

NOTED.

9. REPORT OF THE HUMAN SETTLEMENTS AND INFRASTRUCTURE


(Page R14)

9.1 Presentation: Draft Budget for 2015/2016 Financial Year:

(Presentation - LOT : Human Settlements and Infrastructure Committee - Agenda

2015-05-18)

With 27 Councillors present, Councillors (ANC - 17, IFP - 1, MF - 02,

Independent - 01 and APC - 01) voted in support of the recommendations and

5 DA Councillors abstained.


That the Draft Budget for the 2015/2016 Financial Year presented by the Project

Executive - Finance, relative to the draft budget for the Human Settlements and

Infrastructure Committee, be noted.

NOTED.

10. REPORT OF THE FINANCE AND PROCUREMENT COMMITTEE: MEETING

HELD ON 2015-05-21

(Page R19)

10.1 Revenue Management System (RMS) (10/2/2):

(Page 39 and attached as Annexure A: Finance and Procurement

Committee - Agenda 2015-05-21)

During discussion of the above-mentioned report and presentation, the following

issues, inter-alia, were highlighted by the Finance and Procurement Committee:-

● Concerns that Council approved the Revenue Management System almost

thirteen (13) years ago and to date, the project had not yet been fully

implemented were raised. The Committee stressed its disappointment that

RMS had been approved with a belief that it would save money, instead

Council had spent huge amounts only to test the system thereafter.



● That numerous presentations which highlighted problems encountered

during the process of the implementation of certain modules had been

provided to Council. It was expected that the presentation provided at this

meeting would provide solutions to these problems.

● The retention of COINS system in the future. It was submitted that data

generated by COINS had been huge since it held almost 20 years of

information. It was further submitted that by law, Council had to retain data

for a certain period of time in order to be able to resolve queries.

● Transfer of Skills. It was advised that the transfer of skills had been around

the business that is water, electricity and Durban Solid Waste and the need

to understand the system.

● Time Factor

● Project Cost Implication. The Department had been requested to provide

details on the initial budget of this project and costs incurred to date.

It was submitted that Council offices and Human Resources had been utilised and

therefore no extra costs would be incurred as these had been budgeted by the

respective departments.

● Exact amount of money that had been paid to the company in India.

● Uniqueness of RMS. The system could consolidate all the modules and

discourage the movement of data.

● Meter Reading

● Selling RMS. It had been advised that there had been certain laws which

prohibited the Municipality to sell RMS, however some modules e.g.

receipting of accounts would be given to other municipalities.

● Plan B for RMS. It was advised that should the system collapse there were

many processes that safeguarded the system. It was further advised that

RMS had already been operational except for two modules, namely,

residential electricity and water.

● The Department's recommendation for the Head: Information Management

Unit to take the necessary steps to secure adequate support for the billing

applications was regarded as inconsistent since the recommendation did not

clarify what adequate support was required.

● The fact that different “go live" dates had been provided for the past thirteen

(13) years, it was suggested that the scope of work, including the contractual

agreement between the company that had been awarded this project and the

Council had to be verified by the Head: Legal and Compliance to consider if

the company concerned had not breached the agreement and to recommend

a way forward.




10.1.1 That the report by the City Manager dated 2015-04-21, relative to Revenue

Management System (RMS), be noted.

10.1.2 That the Head: Information Management Unit takes the necessary steps to secure

adequate support for the billing applications (COINS and RMS) to ensure

uninterrupted continuation of the system.

10.1.3 That the Head: Legal and Compliance scrutinise the contractual agreement between

eThekwini Municipality and the company that had been awarded the RMS contract

and verify whether there are any breaches and recommend a way forward.

Recommendation 10.1.1 NOTED and Recommendations 10.1.2 and 10.1.3

ADOPTED.

10.2 DBSA Debenture Repayment for Durban Marine Park (Pty) Ltd (DMTP) (7/3/1/1/2):

(Page 39 : and attached as Annexure B : Finance and Procurement



That the Council of eThekwini Municipality agree to settle the DBSA debenture, on

behalf of Durban Marine Theme Park (Pty) Ltd (DMTP) for the amount of

R90 Million in exchange for equity to be issued by DMTP.

Vote : 53140.45019 R90 000 000.00 (Provided 2015/2016) : FC. 13/02

ADOPTED.

10.3 Future Expansion of the Phoenix Wastewater Treatment Works from 50MI/d to

100MI/d: Tongaat Hulett Development (Proprietary) Limited: Plan SJ 4682/7

(Ref 17/1/1/22/8.JN) (23/1/11/2/1/1):

(Page 102: Finance and Procurement Committee - Agenda 2015-05-21)

The Finance and Procurement Committee considered a report dated 2015-05-06 by

the City Manager in the above regard, the purpose of which was to seek the

Committee's approval on the future expansion of the Phoenix Wastewater Works

from 50M1/d to 100MI/d Tongaat Hullet Development (Proprietary) Limited.

In view of the advise that the initial compensation amount of the project had been

R72 million and had been reduced to R61 425 547 32, it was felt that a team

comprising representatives from the Legal and Compliance Unit and Real Estate Unit

should engage on extensive negotiations with Tongaat Hulett in order to decrease the

amount further.

However, it was noted that the Human Settlements and Infrastructure Committee

considered this issue on 2015-05-05 and had recommended as follows:-

"5.1 That an offer and payment of compensation in the sum of R61 425 547.32

(Sixty One Million Four Hundred and Twenty Five Thousand Five Hundred

and Forty Seven Rand Thirty Two Cents only), excluding VAT, be made to

the Tongaat Hullet Developments (Proprietary) Limited, Registration

Number: 1981/012378/07 in terms of Section 11(1) of the expropriation Act

read with Section 25 (3)(d) of the Constitution of South Africa in respect of

Proposed Portion 8 of Erf 28 Cornubia, registration Division FU, Province

of KwaZulu-Natal in extent 1.5637ha as depicted on plan SJ 4682/7.



5.2 That subject to the adoption of .1 above, the Head: Real Estate be authorised

to conclude the relevant compensation agreement and all necessary

documents to effect transfer to eThekwini Municipality.

5.3 That subject to .1 and .2 above, the Deputy City Manager: Finance be

authorised to include in the adjustments budget report the transfer of funds

to Project Y6468 from Project Numbers Y6651 (Hammarsdale WWTW)

R20 660 695.41 (Twenty Million Six Hundred and Sixty Thousand Six

Hundred and Ninety Five Rand and Forty One Cents only), Y6633

(Upgrade Hillcrest WWTW) R10 000 000.00 (Ten Million Rand), Y6476

(Upgrade Umbilo WWTW) R10 000 000.00 (Ten Million Rand) and Y5602

Amanzimtoti River Trunk Sewer R20 000 000.00 (Twenty Million Rand).

5.4 That a team comprising Legal Services; Real Estate; and representatives

from Tongaat Hulett should further engage with a view to reducing the

compensation amount. "

In noting that the Finance and Procurement Committee resolved not to approve the

first three recommendations of the Human Settlements and Infrastructure Committee,

the City Manager explained that the recommendations should stand, citing that this

Committee had jurisdiction over the matter, hence, the nature of the

recommendations it made. He also advised that the land in question was required for

infrastructure requirements in Cornubia.

The attention was then drawn to the fact that compensation was to be paid since the

Municipality was acquiring land belonging to Tongaat Hullet. It was noted that

Tongaat Hullet had since reduced the amount required for compensation but a

suggestion was made that Tongaat Hullet should be engaged to begin to contribute

towards social responsibility activities and that the City Manager should follow this

aspect up together with the Executive Committee Member SN Gumede.

Accordingly, it was agreed to retain the recommendations of the Human Settlements

and Infrastructure Committee, therefore,


10.3.1 That an offer and payment of compensation in the sum of R61 425 547.32 (Sixty

One Million Four Hundred and Twenty Five Thousand Five Hundred and Forty

Seven Rand Thirty Two Cents only), excluding VAT, be made to the Tongaat Hullet

Developments (Proprietary) Limited (Registration Number: 1981/012378/07 in terms

of Section 11(1) of the expropriation Act read with Section 25 (3)(d) of the

Constitution of South Africa in respect of Proposed Portion 8 of Erf 28 Cornubia,

registration Division FU, Province of KwaZulu-Natal in extent 1.5637ha as depicted

on plan SJ 4682/7.

10.3.2 That subject to the adoption of .1 above, the Head: Real Estate be authorised to

conclude the relevant compensation agreement and all necessary documents to effect

transfer to the eThekwini Municipality.

10.3.3 That subject to .1 and .2 above, the Deputy City Manager: Finance be authorised to

include in the adjustments budget report the transfer of funds to Project Y6468 from

Project Numbers Y6651 (Hammarsdale WWTW) R20 660 695.41 (Twenty Million

Six Hundred and Sixty Thousand Six Hundred and Ninety Five Rand Forty One

Cents only), Y6633 (Upgrade Hillcrest WWTW) R10 000 000.00 (Ten Million

Rand), Y6476 (Upgrade Umbilo WWTW) R10 000 000.00 (Ten Million Rand) and

Y5602 Amanzimtoti River Trunk Sewer R20 000 000.00 (Twenty Million Rand).



10.3.4 That a team comprising Legal Services; Real Estate; and representatives from

Tongaat Hulett should further engage with a view to reducing the compensation

amount.

Vote No.: Y6468 FC: 65/C03

R60 660 695.42 (To be met via and adjustment budget in 2014/15 Y6651,

Y6633, Y6476 and Y5602)

Vote No: 1.70600.11999 R985 000.00 (2015/2016)

ADOPTED.

10.4 Proposed Sale of Land Between Forest Haven Drive/Swallowhaven Road:

Ramakrishna Centre of SA (Ref. 49/242/184)(17/2/1/2/3):


Having considered the report by the City Manager dated 2015-05-06, the purpose of

which was to seek approval on the proposed Sale of Land between Forest Haven

Drive/Swallow Haven Road : Ramakrishna Centre of SA,


10.4.1 That the Municipality declares in terms of Section 14(2)(a) and (b) of the Municipal

Finance Management Act No. 56 of 2003:

10.4.1.1 That Erven 1928 and 1932 are not needed to provide the minimum level of basic

Municipal Services.

10.4.1.2 That the fair market value of the properties is currently assessed at R6 200 and

R3 900 respectively and the social community values to be received has been

considered.

10.4.2 That the rezoning of Erven 1928 and 1932 Forest Haven from Special Residential to

Worship Purposes be undertaken by the Centre.

10.4.3 That in terms of Regulation 40(2)(b)(i) of the Supply Chain Management Policy read

together with Regulation 7 of the Municipal Assets Transfer Regulations, Erven

1928 and 1932, Registration Division FU in the Province of KwaZulu-Natal together

in extent 396 m² depicted on GP No 805/2010 be sold in freehold by private treaty to

the Ramakrishna Centre of South Africa (Registration No 053-630-NPO), at a total

price of R11 514 inclusive of VAT, subject to registration of the 2 meter Sewer and

Drain servitudes in favour of Council as depicted on GP 106/1985).

10.4.4 That authority be granted for the Bid Adjudication Committee to consider the report

to deviate from procurement process in order to formally sell Erven 1928 and 1932

Forest Haven in terms of Section 36 (1) (a) (v) of the Supply Chain Management

Regulations.

10.4.5 That in the event of objections being lodged to the proposed sale of Erven 1928 and

1932 Forest Haven, the matter be referred for resolution in terms of Section 50 of the

Supply Chain Management Policy headed "Resolution of Disputes, Objections and

Queries"



10.4.6 That subject to the adoption of recommendation 1 - 5 above and the approval of the

Bid Adjudication Committee, the Head: Real Estate be authorized to sign all

documentation to give effect to the transaction.

ADOPTED.

10.5 Monthly Report on Public Tender Awards Made by the City for the Month of April

2015 (9/1/3):

(Page 127 and attached as Annexure C: Finance and Procurement


During discussion of the Supply Chain Management reports on pages 127 and 168 of

the agenda, the following clarity was provided to the following questions raised by

the Finance and Procurement Committee:-

● Contracts with a zero value on page 144. It was advised that these had been

the framework contracts for the provision of miscellaneous built

environment professional services. It was further advised that the contracts

had only been awarded as and when the project had been required.

● The recommendation of the Department on page 127 that reads

"3.3. 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 SCM Policies and MFMA provisions are observed"

was discussed.

It was advised that no reports had been provided to the Committee in terms of this

recommendation. In that regard the Committee noted that such recommendation was

a "standing" requirement of the City Manager and the City Integrity Department

attending to such cases. However, reports thereon were being submitted by to the

Municipal Public Accounts Committee.

Further, it was requested that a summary report on investigations and actions taken

from July 2013 to date be provided to the Committee.


10.5.1 That the monthly report of the City Manager dated 2015-05-12, relative to Public

Tender Awards, made by the eThekwini Municipality during the month of

April 2015, be noted.

10.5.2 That it be noted that where the information is available for Wards and registration

numbers, it is included in the report mentioned in 1. above, as information used to

compile the report is taken from submissions made by the eThekwini

Municipality Units.

10.5.3 That the City Manager reserves the right to investigate the awards with a view to

taking disciplinary, criminal and recovery actions where willful and negligent

violation of Supply Chain Management Policies and Municipal Finance Management

Act provisions are observed.

10.5.4 That the City Manager shall submit a report relative to the disciplinary, criminal and

recovery actions taken, it being recorded that the City Manager can only respond

when investigations have been conducted and reports with findings are available.



10.5.5 That in view of 3. above, the Head : Supply Chain Management arrange for a report

to be presented to the Finance and Procurement Committee depicting a summary of

investigations and the actions taken from July 2013 to date.

Recommendations 10.5.1, 10.5.2 and 10.5.3 NOTED and Recommendations

10.5.4 and 10.5.5 ADOPTED.

10.6 Report on Requests/Awards Made in Terms of Regulation 36 of the Municipal

Supply Chain Management (Deviation and Ratification of Minor Breaches of

Procurement Processes) Within the eThekwini Municipality for the Month of

April 2015 (9/1/3):

(Page 168 and attached as Annexure D : Finance and Procurement



10.6.1 That the monthly report of the City Manager dated 2015-05-12, relative to

requests/awards made in terms of Regulation 36 of the Municipal Supply Chain

Management (deviation from minor breaches of procurement processes) within the

eThekwini Municipality for the month of April 2015, be noted.

10.6.2 That it be noted that where information is available for Wards and registration

numbers, it is included in the report mentioned in 1.above as information used to

compile the report is taken from submissions made by the eThekwini Municipality

Units.

10.6.3 That these Regulation 36 requests are included as note in the annual financial

statements for 2014/2015.



violation of Supply Chain Management Policies and Municipal Finance Management

Act provisions are observed.

10.6.5 That the City Manager shall submit a report relative to the disciplinary, criminal and

recovery actions taken, it being recorded that the City Manager can only respond

when investigations have been conducted and reports with findings are available.

Recommendations 10.6.1, 10.6.2 10.6.3 and 10.6.4 NOTED and

Recommendation 10.6.5 ADOPTED.

10.7 Budget Statement Report for the Month Ending 30 April 2015 (7/1/4):

(Page 192 and attached as Annexure E : Finance and Procurement


During discussion of the above-mentioned statement report, the following issues,

inter-alia, were highlighted by the Finance and Procurement Committee:-

● "Other Revenue" Description on page 202. It was noted that the description

referred to the sundries i.e. the hire of municipal halls.

● The contractual claims on Western Aqueduct on page 208 with a potential to

cost over R100m. It was noted that this amount had been budgeted for under

the current financial year.



● Emtateni Logistics and Transnet. It was noted that there had been ongoing

engagements between the Legal and Compliance Services Department with

regard to the R64 million owed to Council by both Emtateni Logistics and

Transnet. Parastatals. The Department had been requested to provide a

column elaborating on the status of the recovery process.

● Ward Committee Members in Arrears. It had been requested that Ward

Councillors approach the office of the Speaker for the provision of

information on Ward Committee Members in arrears on municipal accounts.

● Feedback on a meeting held with the Minister of KwaZulu-Natal Human

Settlements Department with the intention to recover the debt owed to the

Municipality by the Provincial and National Governments. It was advised

that numerous meetings had been held with the Minister with the intention

to recover the debt owed.

It was submitted that the KwaZulu-Natal Human Settlements Department had been

provided with R3 billion for its projects and had allocated 3% of that amount to

eThekwini Municipality. Further, it was submitted that in order for the Provincial

Department to fund Council it had to either cancel some of the projects it had

intended to fund or request the National Department to increase the funds allocated

to the Province. In that regard, it was noted that the Province could not refund

eThekwini Municipality until the process had been concluded.

Councillor Crouch, Collins, Macpherson, Singh, Ganesh and Beetge of the

Democratic Alliance dissented at the Finance and Procurement Committee and

Councillors NC Gumede and J Naidoo of Inkatha Freedom Party abstained.

At the Executive Committee level, the Democratic Alliance explained that the reason

for dissention on this matter is because of prevailing uncertainties in respect of the

funds owed by the Provincial Department of Human Settlements in the amount of

R2.4 billion and the recent Council approval to allocate an amount of R140 Million

from the City's budget for human settlements project. Further, reference was made to

pending feedback arising from the meeting held by the City with the MEC for

Human Settlements.

Speaking on this matter, His Worship the Mayor confirmed that the MEC made an

undertaking to transfer an amount of R140 Million to the City, but it had since been

learned that only R15 Million had been received from the Province thus far. The

Mayor advised of the follow up meeting to be held with the MEC and undertook to

pursue this matter again. With regard to the amount of R2.4 billion owed by the

Province to the City, the Executive Committee Member SN Gumede advised that the

MEC had given an indication that the Province would be unable to pay this amount

and suggested the City should refer the matter for a decision at the National

Department of Human Settlement level.

On the other hand, the Executive Committee Member SN Gumede drew the attention

of the Committee to the fact that it was critical for the City to identify savings to fund

human settlements projects citing far-reaching implications in the event of work

stoppages since the Municipality might face potential court actions from residents

whose houses had already been demolished for housing construction and from

contractors for failure to pay them for work undertaken as appointed by the City.

Given the undertaking by His Worship the Mayor to pursue the issue of funding for

human settlements,




That the Budget Statement Report for the Month Ending 2015-04-30, prepared and

submitted by the City Manager as per his report dated 2015-05-12 and as per the

requirements of Section 71 of the Municipal Finance Management Act (MFMA) and

in terms of Government Notice No 32141 dated 17 April 2009, be noted.

NOTED.

10.8 Report on Investments (7/11/4):

(Page 320 : Finance and Procurement Committee - Agenda 2015-05-21)


That the report on the investments of the eThekwini Municipality as at 2015-04-30,

prepared and submitted by the City Manager as per his report dated 2015-05-06 and

as per the requirements of the Municipal Cash Management and Investment

Regulations of the Municipal Finance Management Act, 2003, be NOTED.

NOTED.

10.9 Municipal Entities Audit Requirements for the Year Ended 30 June 2015

(2/10/1/1/3):

(Page 331 and attached as Annexure E : Finance and Procurement



That taking cognizance of the International Convention Centre Durban (Pty) Ltd and

Durban Marine Theme Park (SOC) Ltd operating at a break-even level, excluding

depreciation and finance charges, the Council confirms its commitment to ensuring

the future financial viability of the International Convention Centre and the Durban

Marine Theme Park and more specifically to meet any funding shortfalls that may

compromise their ability to continue trading as a “going concern”

ADOPTED.

10.10 Budget Overview Report for the 2015/2016 MTREF:

(Page 360 : Finance and Procurement Committee - Agenda 2015-05-21)


That in an endeavour to ensure that service delivery in respect of roads

infrastructure, housing developments, electricity supply, municipal area cleansing

and other services facilities are improved, the report by the City Manager dated

2015-04-29 relative to the Budget Overview for the 2015/2016 MTREF, be

approved.


2015-05-27.



11. INVITATION TO ETHEKWINI MUNICIPALITY TO SERVE AS

CO-LEADERSHIP CITY FOR THE C40 SUSTAINABLE SOLID WASTE

SYSTEMS NETWORK (WS2015/068) (32/2/2)

(Page 58)


That Council grants authority for the eThekwini Municipality's Cleansing and Solid

Waste Unit to accept the role of Co-leadership on the C40 Sustainable Solid Waste

Systems Network, which position will enable the City to assist other Cities in Africa

with solid waste management challenges and guide policies across the Continent

whilst also benefitting from having direct contact with organisations with vast

experience in solid waste management and access to technical expertise from

organisations such as the International Solid Waste Association.

Vote No.: 10371.11960 FC No.: 08/25

ADOPTED.

12. COLLECTION OF DEBT FROM EMTATENI LOGISTICS (7/6/3/1)

(Page 70)


12.1 That Council notes explanation on what gave rise to the debt owed by Emtateni

Logistics, a company which has been contracted by the City for the provision of

parking meter system; installation; commission; operation; maintenance;

management; inspection; and certain summons generation and service within the

jurisdiction of eThekwini Municipality, as well as the interventions made by the City

to recover an amount of R8.7 Million which accumulated over a period of time, as

recorded in the report by the City Manager dated 2015-05-12.

12.2 That the Head: Legal and Compliance be mandated to lodge a claim against Emtateni

Logistics.

12.3 That Council consider writing off the amount of R8.7 Million owed by Emtateni

Logistics if Legal and Compliance advises against the lodging of the

Municipal claim.

MOTION TO AMEND

In terms of Rule of Order 20(4), Councillor RD Macpherson, seconded by

Councillor WJ Burne, moved as a procedural motion that the above-mentioned

recommendations of the Executive Committee be amended by the deletion of

recommendation 12.3 above.

CARRIED

The above-mentioned motion to amend was unanimously CARRIED.



Whereafter, it was

RESOLVED:

12.1 That Council notes the explanation on what gave rise to the debt owed by

Emtateni Logistics, a company which has been contracted by the City for the

provision of parking meter system; installation; commission; operation;

maintenance; management; inspection; and certain summons generation and

service within the jurisdiction of eThekwini Municipality, as well as the

interventions made by the City to recover an amount of R8.7 Million which

accumulated over a period of time, as recorded in the report by the

City Manager dated 2015-05-12.

12.2 That the Head: Legal and Compliance be mandated to lodge a claim against

Emtateni Logistics.

13. MONTHLY SALGA REPORT TO MEMBERS: 30 APRIL 2015 (14/2/1/1/1)

(Page 264)


13.1 That Council notes the report from South African Local Government Association

(SALGA) as at 30 April 2015, attached herein as Annexure "A" and which reports

communicates to the Municipalities various issues including (i) SALGA KZN

Membership Levies due for payment; (ii) establishment of Spatial Planning and Land

Use Management Act (SPLUMA) structures as well as development of SPLUMA

bylaws; (iii) hosting of Workshops by SALGA on Councillor Remuneration;

(iv) SALGA interventions to address delays in the payment of sitting allowance for

Councillors serving on SALGA governance meetings and (v) dates of SALGA

governance meetings as well as compliance requirements in respect of the attendance

of these meetings.

NOTED.

JS NXUMALO

CHAIRPERSON

____________

In presenting the Second Report of the Executive Committee The Deputy Mayor

acknowledged the presence of Inkosi Bhengu.

_____________



SECOND REPORT OF THE EXECUTIVE COMMITTEE (Meeting held on Tuesday, 2015-06-09)

PRESENT : Executive Committee Members JS Nxumalo (Mayor and Chairperson),

NF Shabalala (Deputy Mayor), JN Cele, HU De Boer, SN Gumede,

ZRT Gumede, ZM Mncwango, BR Mtshali, MS Nkosi and F Peer.

_____________

1. REQUEST FOR AUTHORITY TO ENGAGE IN A SECOND THREE-YEAR

PARTNERSHIP BETWEEN ETHEKWINI MUNICIPALITY AND THE

UNIVERSITY OF KWAZULU-NATAL FOR KZN SANDSTONE SOURVELD

JOINT RESEARCH PROJECT (32/1/1/1/3/1)

(Page 54)

The continuation of joint research partnership between the eThekwini Municipality

and the University of KwaZulu-Natal was supported provided this was to result into

tangible benefits for the City. The importance of obtaining reports of completed

projects was also cited as critical to monitor outcomes of the research partnership.

The Committee was informed that the Municipality was exploring the possibility of

entering into partnerships with other local tertiary institutions on elements where

they featured strong competencies to drive, amongst other things, issues of bulk

infrastructure requirements and entrepreneurship development.

With the Committee being in support of the continuation of the joint partnership,


1.1 That authority be granted for the extension of the Joint Research Partnership between

the eThekwini Municipality and the University of KwaZulu-Natal to improve the

City's understanding, within an urban context, of the appropriate means of

optimizing land use management decisions within a climate change adaptation

framework, including quantifying the ecological impacts of climate change,

understanding socio-economic benefits derived from ecosystems-based services and

defining the ecological processes.

1.2 That subject to the adoption of .1 above, authority be granted for the City Manager to

sign on behalf of the Municipality, the Memorandum of Agreement stipulating

details of the second phase of the Joint Research Programme referred to above.

Vote No.:26230.04720 R1000 000.00 (2015/16)

Vote No.:26230.04720 R1000 000.00 (2016/17)

Vote No.:26230.04720 R1000 000.00 (2017/18); FC No.: 46/81

ADOPTED.

2. UPDATE ON THE ESTABLISHMENT OF THE CITY PLANNING

COMMISSION (2/1/4/1/2)

(Page 59)

The Committee discussed update on the functioning of the City's Planning

Commission since its establishment on 2014-08-29. It was noted that the Planning

Commission had planned to meet with the Executive Committee on 2015-06-18 to



create a platform to present outcomes of the issues already dealt with and thereafter

obtain the views of the Municipality to ensure alignment of its operations with the

overall City's strategic objectives. The report under consideration sought to address

the remuneration of the Planning Commission members and to report the overall

financial implications associated with the operations of this structure. In terms of the

Council decision of 2014-08-29 the Planning Commission members were to be

remunerated as per the Auditor-General's remuneration guidelines.

The Committee was informed that it had since been considered it prudent to review

the remuneration of the Planning Commission members to ensure alignment with

other bodies across the Municipality, such as the remuneration of the Audit

Committee members. As such, the remuneration model approved by Council on

2015-03-31 for the Audit Committee members would be applicable to the Planning

Commission members.

As part of the previous Council decision on the establishment of the City Planning

Commission, the Deputy City Manager: Finance had been tasked to identify funding

to support its work and for the City Manager to report to Council on this matter. This

submission therefore also sought to advise Council of the expenditure incurred in

pursuit of the operations of the Commission.

A detailed budgetary provision submitted to the Executive Committee reflected that

the Commission had incurred expenditure in the amount of R5 887 711.40 (Five

Million Eight Hundred and Eighty Seven Thousand Seven Hundred and Eleven Rand

Forty Cents). These funds related to the formalities involved in establishing the

Commission; operational phase; and provision for projects that the Commission

would be undertaking. An amount of R3 135 482.00 (Three Million One Hundred

and Thirty Five Thousand Four Hundred and Eight Two Rand) had already been

allocated to fund the operations of the Commission but there is a shortfall of

R2 752 229.40 (Two Million Seven Hundred and Fifty Two Thousand Two Hundred

and Twenty Nine Rand Forty Cents). The budget of the Commission is currently

being dealt with in terms of the budget adjustment process.

Given the above circumstances,


2.1 That Council notes progress made with the formation and operationalization of the

City Planning Commission, which included the hosting of the inaugural meeting in

December 2014; Strategic Planning Workshop in February 2015 and Stakeholder

Consultation Workshop; First Quarterly Meeting in April 2015; and the

advertisement of two vacant positions within the Planning Commission.

2.2 That the remuneration model approved by Council on 2015-03-31 for the Audit

Committee members and other Municipal bodies with external members be

applicable to the City Planning Commission members for them to be remunerated as

follows:-

2.2.1 The City Planning Commission Chairperson to receive an annual retainer fee of

R177 171.00 (One Hundred and Seventy Seven Thousand One Hundred and Seventy

One Rand) and be remunerated at R3 584.00 (Three Thousand Five Hundred and

Eighty Four Rand) per meeting.



2.2.2 The Commissioners to receive an annual retainer fee of R128 024.00 (One Hundred

and Twenty Eight Thousand and Twenty Four Rand) and be remunerated at

R2 176.00 (Two Thousand One Hundred and Seventy Six Rand) per meeting.

2.2.3 Supplementary work to be paid for at a rate of 40% of the current rate paid to

Commission members, which amounts to R652.00 (Six Hundred and Fifty Two

Rand), it being recorded that payment will be effected upon completion and approval

of the claim form and with payments for ad hoc requests to be reimbursed by the

requesting Cluster and/or Unit.

2.2.4 Re-imbursive payments to be determined in accordance with the approved rate per

kilometre, as published by the National Department of Transport, with members to

be reimbursed upon furnishing particulars of their respective travel to and from the

venue of the meeting and other actual costs to be reimbursed upon the submission of

original receipt and relevant motivation.

2.3 That Council approves the total expenditure incurred in relation to the operations of

the City Planning Commission in the amount of R5 887 711.40 (Five Million Eight

Hundred and Eighty Seven Thousand Seven Hundred and Eleven Rand Forty Cents)

for the activities including the hosting of inaugural meeting in December 2014;

Strategic Planning Workshop in February 2015 and Stakeholder Consultation

Workshop; First Quarterly Meeting in April 2015; Second Quarterly Meeting

Scheduled for June 2015; Projects-related costs; and Remuneration Fees, it being

recorded that an amount of R3 135 482.00 (Three Million One Hundred and Thirty

Five Thousand Four Hundred and Eighty Two Rand) has already been allocated, thus

a shortfall of an amount of R2 752 229.40 (Two Million Seven Hundred and Fifty

Two Thousand Two Hundred and Twenty Nine Rand Forty Cents) still to be

allocated.

ADOPTED.

3. PERFORMANCE MONITORING AND EVALUATION WORKSHOP (14/1)

(Page 188)

The Committee supported the initiative aimed at strengthening the understanding of

the oversight role as it pertained to performance monitoring and evaluation. The

workshop scheduled for this purpose was supported for the City to achieve necessary

compliance requirements and accountability. Confirmation was given that the

workshop would also be attended by representatives from both Provincial and

National Government to reach a common understanding on reporting to ensure the

City's systems were aligned to that of the other spheres of Government. In view of

the Youth Month activities, it was agreed to change the date of 23 June 2015 which

had initially been set for this workshop.

Accordingly


That all Councillors of the eThekwini Municipality participate in the Performance

Monitoring and Evaluation Workshop to be held on 25 June 2015 at the Moses

Mabhida Stadium, which workshop is aimed at sharing information on the

requirements and processes involved in playing effective oversight role for the

Municipality to achieve necessary compliance requirements and accountability.

ADOPTED.



4. COMMENTS ON THE EXPROPRIATION BILL 2015 (1/1/1/R)

(Page 206)


4.1 That Council notes comments made by the eThekwini Municipality to the South

African Parliament on the Expropriation Bill 2015, as contained in the report by the

Head: Legal and Compliance dated 2015-05-29, which Bill seeks to align the

Expropriation Act of 1975 with the Constitution of 1996 and to provide a common

framework to guide procedures for the expropriation of property by organs of state.

4.2 That the Head: Legal and Compliance facilitates the co-ordination of the workshop

to provide a platform for Councillors to understand full implications of the Bill with

respect to property expropriation.

Recommendation 4.1 NOTED and Recommendation 4.2 ADOPTED.

5. COMMENTS ON THE DRAFT PRESERVATION AND DEVELOPMENT OF

AGRICULTURAL LAND FRAMEWORK BILL AND THE DRAFT POLICY ON

THE PRESERVATION AND DEVELOPMENT OF AGRICULTURAL LAND

(20/1/7/5)

(Page 218)


5.1 That Council notes comments made by the eThekwini Municipality to the

Department of Agriculture, Forestry and Fisheries on the draft Bill and Policy on

Preservation and Development of Agricultural Land, as contained in the report by the

Head: Legal and Compliance dated 2015-05-22, which deal with matters relating to

the regulation of subdivision; rezoning and protection of agricultural land;

preservation and development of agricultural land; implementation of national

framework for consideration and approvals relating to subdivision and rezoning;

ensuring sustainable use of agricultural land; protection of the right to farm;

demarcation of Protected Agricultural Areas; and promotion of intergovernmental

relations.

5.2 That the Head: Legal and Compliance facilitates the co-ordination of the workshop

to provide a platform for Councillors to understand full implications of the Draft Bill

and Policy with respect to Preservation and Development of Agricultural Land.

Recommendation 5.1 NOTED and Recommendation 5.2 ADOPTED.

6. REPORT OF THE COMMUNITY AND EMERGENCY SERVICES


(Page R1)

6.1 Major Hazard Installation : Bluff Towers, 318 Tara Road, Bluff, Durban (30/2/5/1):


The Committee noted that the risk assessment, on behalf of Bluff Towers, had been


Hazard Installation regulations framed under the Occupational Health and Safety Act

85 of 1993 and that the report thereon was subsequently considered by the


no reason being offered to advise against its acceptance and the extension of the Mall

at Bluff Towers in accordance with the provisions of the assessment.






Technical Task Team that there is no valid reason to advise against the extension of

the Mall at Bluff Towers, situated at 318 Tara Road, Bluff, Durban, since the risks

posed by underground pipelines fell within the acceptable range of ALARP

principles and as it is in accordance with the Major Hazard Regulations, the

extension of the Mall thereat, be approved.

ADOPTED.

6.2 City Wide Risk Assessment (29/2/2/1):


The Committee noted that The Disaster Management Advisory Forum had provided

a platform to address strategic city multi-sectoral issues which were mandatory

functions aligned to a framework of legal obligations, recent developments such as

the resignation of the Chairman of the South Durban Basin - Technical Task Team

and the termination of services of all Temporary Employment Services employees

had negatively impacted on forward momentum of critical projects.

It was further noted that a report on the Organisation and Establishment

of Emergency Services Unit, which was undertaken by Organisational Development

& Change Management Unit, confirmed the critical staff shortage situation in the

Disaster Management Department. However, it was noted that it would take time for

the proposed new structure posts to be approved and implemented, notwithstanding

that in the interim the Department may be faced with severe constraints and

challenges and in certain instances non compliance with legal and statutory

requirements.


6.2.1 That a supernumerary post [Project Executive- Risk Assessment] be created for a

fixed term contract period of twenty four (24) months and that the Disaster

Management and Emergency Control Unit appoint a qualified person into this post, it

being recorded that the Project Executive – Risk Assessment post now already has a

Job Description which had been TASK graded [TK 18] and which would allow

continuity on the Risk Assessment Project.

6.2.2 That the Major Hazard Installations and South Durban Basin Off-Site Emergency

Plans require a full time experienced member of staff to co-ordinate a

multi-disciplinary task team as this post requires an experienced senior member of

staff, preferably with a background in emergency management, to be seconded on a

temporary transfer basis to the Disaster Management Unit.

ADOPTED.

6.3 Proposed New eThekwini Municipality By-Laws 2015 (1/1/3/1/R):


The Committee, having considered the report by the City Manager dated 2015-04-17,


6.3.1 That the following By-laws be approved for final publication in eZasegagasini Metro

and the Provincial Gazette, with the By-laws taking effect six (6) months from the



date of publication thereof or on such earlier date as may be determined by the

publication of a commencement notice in the Provincial Gazette.

- Nuisance and Behaviour in Public Places By-law

- Libraries By-law

- Museums By-law

- Municipal Parks and Recreational Grounds By-law

- Municipal Premises and Facilities By-law

- Problem Buildings By-law

- Childcare Facilities By-law

- Beaches By-law

6.3.2 That consideration of the Cemeteries and Crematoria By-law 2015 be deferred to

enable the Head : Parks Recreation and Culture to arrange a Workshop for further

public and stakeholder participation.

ADOPTED.

6.4 SALGA Games : Ilembe District from 11 to 14 December 2015 (13/7):

(Page 16: Community and Emergency Services Committee - Supplementary

Agenda 2015-06-04)

The Committee, having concurred with the report by the City Manager dated

13 May 2015,


6.4.1 That in recognition of a holistic, sustainable and integrated sport development

programme which sought to nurture talent and in an endeavour to strengthen

partnerships with federations and create opportunities for sport development,

authority be granted for eThekwini Municipality to participate in the 2015 SALGA

(South African Local Government Association) Games being hosted by the Ilembe

District Municipality from 2015-12-11 to 2015-12-14, it being requested as follows:-

6.4.1.1 That authority be granted for approximately 400 athletes, 60 officials, Managers,

Coaches and 40 politicians to attend the SALGA Games;

6.4.1.2 That authority be granted for appropriate transport to be secured through the

eThekwini Fleet Management Department;

6.4.1.3 That authority be granted for the ordering of appropriate playing and training kits and

equipment for Team eThekwini including bags, caps, skirts, shorts, shirts and track

suits; and

6.4.1.4 That authority be granted for accommodation to be sourced, secured and paid for by

eThekwini Municipality in the Ilembe/eThekwini District, it being recorded that such

authority would include pre payments for services such as catering, water and

refreshments for Team eThekwini.

6.4.2 That authority be granted to incur the following estimated cost for participating in the

aforementioned games, inclusive of VAT:-

Category Estimated Amount (R)

Accommodation 1 300 000.00

Transport 750 000.00

Catering 550 000.00



Category Estimated Amount (R)

Clothing 900 000.00

Games Preparation 400 000.00

Contingencies 100 000.00

Total Amount 4 000 000.00

An amount of R4000 000.00 (Four Million Rand Only) has been provided on the

Draft operation of Budget 2015/16 for participation at the said games.

Vote No.: 10345.10563 00003 R4 000 000.00

FC No.: 31/059


Executive Committee on the basis of excessive costs in respect of

accommodation, the matter was put to the vote. With 153 Councillors present,

114 Councillors (ANC – 90, MF – 7, NFP – 8, IFP – 6, ACDP – 1, APC - 1 and

IND – 1) voted in favour whilst no Councillors voted against. There were 39

Councillors (DA) who abstained from voting.

The above recommendations of the Executive Committee were, by the majority

vote, ADOPTED.

6.5 Expropriation of Land for Regional Fire Station: Erf 10626 Verulam: Wicks Realty

cc (Ref 17/2/1/1/26/14/JN) (17/2/1/1/4):

(Page 23: Community and Emergency Services Committee - Supplementary

Agenda 2015-06-04)

The Committee, having considered the report by the City Manager dated 2015-05-15

noted that Wicks Realty CC had historically acquired the subject property from the

Department of Transport at 16.92% of the market value of the subject property at the

time of purchase.

Whilst taking cognisance of the constitutional directives and the history of the

acquisition and that the compensation must be just and equitable, it was deemed

necessary that the same principle of 16.92% of the market value of the subject

property as at the date of the notice of expropriation, be applied when determining

the compensation amount payable by eThekwini Municipality to Wicks Realty CC.

Notwithstanding that no agreement had been reached on the compensation amount,

in order to meet the Municipality's legal obligations, current financial year's

commitments and to preclude interest from accruing,


6.5.1 That an offer and payment of compensation in the sum of R2 538 000.00 (Two

Million Five Hundred and Thirty Eight Thousand Rand Only) excluding VAT be

made to Wicks Realty cc (Registration Number: 200824080523) in terms of Section

11(1) of the Expropriation Act read with Section 25(3)(b) of the Constitution of

South Africa together with interest calculated in terms of Section 12(3) of the

Expropriation Act in respect of Erf 10626 Verulam, Registration Division FU, and

Province of KwaZulu-Natal in extent 1.2728ha.





transfer to eThekwini Municipality.

Vote No.: 1.71153.21022 (2014/2015); R2 615 000.00

FC No.: 1415/18

ADOPTED.

6.6 2015/2016 Cluster Risk Assessment Report (2/10/1/1/8):


2015-06-04)

The Committee received a presentation in the above regard


That the 2015/2016 Risk Assessment Report for the Community and Emergency

Services Cluster, be noted.

NOTED.

7. REPORT OF THE HUMAN SETTLEMENTS AND INFRASTRUCTURE


(Page R5)

7.1 Expropriation : Nyokeni 30 Kilolitre Elevated Tank and Pipeline Servitude Over

Various Properties : Hand Plan No. Sh9863 and SH9864

(Ref: 17/2/1/1/26/22-23.NP) (17/2/1/1/4):



7.1.1 That an offer of compensation in respect of land expropriation for the Nyokeni 30

kilolitre Tank Project, calculated in terms of Section 12 of the Expropriation Act No.

63 of 1975 be paid to the registered owners in terms of Section 11(1) of the

Expropriation Act No. 63 of 1975, as reflected below:-

No. Municipality’s

requirements

Registered

owner

Approx.

Extent

Market

value

Solatium Compensation

1

Proposed water

reservoir and

pumphouse

servitude over

Remainder of

Portion 901 (of 9)

of the Farm Cotton

Lands 1575 Mr S Osman &

Others

208m²

R44 000 R4 400 R48 400 Proposed right of

way servitude and

water pipeline

servitude over

Remainder of

Portion 901 (of 9)

of the Farm Cotton

Lands No. 1575

1898m²




requirements

Registered

owner

Approx.

Extent

Market

value


2

Proposed right of

way servitude and

water pipeline

servitude of

Portion 9 of the

farm Cotton Lands

No. 1575

Estate Late Y.S

Sulaiman &

Others

472m² R9 000 R900 R9 900


conclude the relevant compensation agreements and sign all necessary documents to

effect transfer in favour of the Municipality.

Vote No. X5288; R82 000.00 (Provided from the 2014/2015 adjustment budget)

FC 64/C29)

ADOPTED.

7.2 Proposed Deproclamation and Transfer of Erf 933 Umlazi "N" to African Ethopian

Church (056-542NPO) (17/2/1/2/3):



7.2.1 That the Municipality declares in terms of Section 14(2)(a) and (b) of the Municipal

Finance Management Act No. 56 of 2003:-

7.2.1.1 That the property zoned as Public Open Space described as Erf 933 Umlazi "N" is

not required to provide the minimum level of basic Municipal Services and;

7.2.1.2 That the fair market value of the land is R420 000.00 (Four Hundred and Twenty

Thousand Rand Only) and the Social Community value to be received has been

considered.

7.2.2 That the rezoning of Erf 933 Umlazi "N" from Public Open Space to Place of

Worship shall be undertaken by the Purchaser prior to transfer at his cost within two

(2) years of Council Authority.

7.2.3 That in terms of Section 212 of Ordinance 25 of 1974, the Public Open Space

described as Erf 933 Umlazi "N", in extent 2116m² as depicted on Plan SJ4580/5, be

deproclaimed prior to alienation.

7.2.4 That Erf 933 Umlazi "N" be rezoned in terms of the KwaZulu-Natal Planning

Development Act.

7.2.5 That should the deproclamation and/or rezoning not be successful, the contract as

attached to the report of the Head: Real Estate dated 2015-03-17 shall ipso facto

lapse and neither party shall have any claim whatsoever against the other on account

thereof.

7.2.6 That Section 40(2)(b)(i) of the Supply Chain Management policy read together with

Regulation 7 of the Municipal Assets Transfer Regulations, Erf 933 Umlazi "N ",

Registration Division FT, Province of KwaZulu-Natal in extent 2116m² as depicted

on SJ 4580/5 and SG 1137/1997, be sold by private treaty to the African Ethiopian

Church (056-542 NPO) at the price of R846.40 (Eight Hundred and Forty Six Rand

and Forty Cents only) which was paid by the Purchaser in accordance with resolution

KR 19970279 adopted by the former KwaZulu-Natal Provincial Housing Board.



7.2.7 That authority be granted for the Bid Adjudication Committee to consider the report

to deviate from procurement process in order to formally sell Erf 933 Umlazi "N" to

the African Ethiopian Church in terms of Section 36 (1) (a) (v) of the Supply Chain

Management Regulations.

7.2.8 That in the event of objections being lodged to the proposed disposal of Erf 933

Umlazi "N", the matter be referred for resolution in terms of Section 50 of the Supply

Chain Management Policy headed "Resolution of Disputes, Objections, Complaints

and Queries".

7.2.9 That in the event of objections being lodged to the proposed deproclamation of Erf

933 Umlazi "N" when it is statutory advertised, the matter be referred to the MEC for

Co-operative Governance and Traditional Affairs for consent.

7.2.10 That subject to the adoption of item 1 - 9 above and the approval of the Bid

Adjudication Committee, the Head : Real Estate be authorized to sign all

documentation to give effect to the transaction.

ADOPTED.

Prior to consideration of the item the Deputy Mayor advised that the area in

question was “Umlazi L”. However, it was subsequently confirmed that the area

in question was “Umlazi N”.

7.3 Expropriation : Alverstone to Fraser's Road Trunk Watermain Over Various

Properties: Hand Plan No. SJ 4656/3-11 (Ref : 17/2/1/1/70/9-17.NP) (17/2/1/1/4):



7.3.1 That an offer of Compensation calculated in terms of Section 12 of the Expropriation

Act No. 63 of 1975 be paid to the registered owners in terms of Section 11 (1) of the

Expropriation Act No. 63 of 1975, as reflected below:-


requirements

Registered owner Approx.

Extent

Market

value


1 Proposed 3 00m wide

water Pipeline

Servitude over the

Remainder of Portion 6

of Erf 283 Assagay

Clodine Pentene

ID No.

570118 0096 08 1 109m² R3 300 R330 R3 630


water Pipeline

Servitude over the


of Erf 283 Assagay

Joanne Nicola Hope

ID No.

790926 0170 08 4 365m² R11 000 R1 100 R12 100


water Pipeline

Servitude over the

Portion 9 of Erf 283

Assagay

Body Corporate SS

Devonshire Lane

63m² R1 900 R190 R2 090


water Pipeline

Servitude over the

Remainder of Erf 283

Assagay

Gysbert Johannes

Muller ID No.

570529 5104 08 6

Yvonne Muller

ID No.

5710090051086

294m² R8 800 R880 R9 680




requirements

Registered owner Approx.

Extent

Market

value



water Pipeline

Servitude over the


of Erf 323 Assagay

Peter Michael Carty

ID No.

550624 5230 181

Linda Joan Carty

ID No.

5204 29 0706 087

92m² R2 800 R280 R3 080


water Pipeline

Servitude both over

Erf 143 & 144 Assagay

Excellence Props

Ten CC

Registration No.

CK2001/076321/23

349m²

&

261m²

R18 300 R1 830

R20 130


water Pipeline

Servitude over Erf 99

Assagay

Robert Clark

Stewart

ID No.

561214 5054 08 3

336m² R10 100 R1 010 R11 110


water Pipeline

Servitude over Portion

7 of Erf 98 Assagay

Lolita Isabel Von

Falkenhausen

ID No.

620719 0090 08 9

12m² R600 R60 R660

7.3.2 That subject to the addition of 1. above, the Head: Real Estate be authorised to

conclude the relevant compensation agreements and sign all necessary documents to

effect transfer in favour of the Municipality.

(Vote No. X4368; R128 000.00 (Provided in 2014/2015 via. Adjustments Budget)

FC No.64/C27)

ADOPTED.

7.4 Project Authority : Upgrading of TRK 83238 in Ward 94 (25/4/2):



That project authority be granted for the upgrading of TRK 83238 utilising the funds

provided for the upgrading of Dudu Mkhize Road, (in the 2015/16 and 2016/17

Capital Budget) since Dudu Mkhize Road has already been upgraded. (Vote No.: P9515-1.72510.49300; R1 316 000.00 (Provided 2015/16)

R1 766 000.00 (Provided 2016/17)

R1 000 000.00 (To be provided 2016/17 via.

Adjustments Budget - savings to be

identified); FC No 49/C081)

ADOPTED.

7.5 Bulk Water Supply in Various Wards (23/1/1/3/1):



7.5.1 That subject to obtaining quotations and tenders where necessary, authority be

granted for the implementation of projects X7217 : Oakford Priory - Bulk Water

Supply (Ward 59); X6024: Oakford Priory - Relay of 150mm to Oakford Primary

School (Ward 59); X5669 : Augumentation of the Bulk Supply to Adams Mission

5 Reservoir (Wards 95 and 96); X4240 : Clansthal 1 Reservoir Inlet - (Ward 99) and

X7207 : Maphephetheni 200mm Trunk Main1 (Wards 2 and 8) as per details

reflected in the report WS2015069 of the Head : Water and Sanitation dated

2015-04-17.



7.5.2 That subject to the adoption of 1. above, and in order to meet additional expenditure

in the 2014/15, 2015/16, 2016/17 and 2017/18 financial years, the Deputy City

Manager : Treasury be authorised to include in his respective Adjustments Budget

Report the transfer of R23 138 550.00 (Twenty Three Million One Hundred and

Thirty Eight Thousand Five Hundred and Fifty Five Rand Only) (Excl. VAT) from

the projects listed in the report by the Head : Water and Sanitation dated 2015-04-17

to the projects referred to in 1. above.

7.5.3 That subject to the adoption of .1 and .2 above, the Head: Real Estate be authorised

to acquire any pipeline servitude as well as any other necessary servitudes,

wayleaves and encroachments and land by negotiations and/or expropriations as

considered necessary.

(Cost Centre : As Listed R 1 500 000.00 (Funded in 2014/2015).

R 1 250 000.00 (To be met by vote transfer in 2014/2015

via Final Adjustment Budget))

(Project Nos. : As Listed R11 262 000.00 (To be met by vote transfer in 2015/2016

via Adjustment Budget).


via adjustment Budget).


via Adjustment Budget).

F.C. 64/C35)

ADOPTED.

7.6 Work in Excess of R500 000 : Electrical Reticulation of Mshazi Road - Emolweni:

(Ward 9) (DL 1215711) (27/2/1/3/R):



That authority be granted for the Head: Electricity to incur expenditure at an

estimated cost of R1 022 500.00 (One Million and Twenty Two Thousand Five

Hundred Rand Only) to construct a medium and low voltage reticulation system in

order to provide for new electricity connections to the residence in Ward 9, Mshazi

Road, eMolweni.

Account Code 80032: R1 022 500.00

Provided 2015/16; Capital Estimates FC79/CA1557

ADOPTED.

7.7 Work in Excess of R500 000 : New Supply at Aletta Place, Queensburgh (Ward 63):

Drawing No. 2686560 (27/2/1/1/R):



That authority be granted for the Head : Electricity to incur expenditure estimated at

R600 850.00 (Six Hundred Thousand Eight Hundred and Fifty Rand Only), through

the normal goods and services procurement process, to install 760 meters of medium

voltage electricity cables and a 500kVA miniature substation, in order to provide a

new 150A 400V electricity supply for a residential development in Ward 63,

55 Aletta Place, Queensburgh.



(Account Code : 81009: R600 850.00 (Provided in the 2014/2015 Capital Estimates);

F.C. 79/CA1552)

ADOPTED.

7.8 Work in Excess of R500 000 : New Electrical Supply to 11 Browns Road, Durban

Point, Drawing Number 1364702 (27/2/1/1/R):



That authority be granted for the Head : Electricity to incur expenditure estimated at

R3 011 168.00 (Three Million and Eleven Thousand One Hundred and Sixty Eight

Rand only) through the normal goods and services procurement process to carry out

the necessary construction in order to supply the new customer in 11 Browns Road,

Durban Point.

(Account Code : 80161: R3 011 168.00) (To be provided in the 2014/2015 Capital

Estimates); F.C.79/CA1553)

ADOPTED.

7.9 Proposed Upgrade of 132 kV Klaarwater/Hillcrest Overhead Transmission Lines

(OHTL) from Tower 1 to 19 (27/2/1/2/R):



That in order to cater for load growth, authority be granted for the Head: Electricity

to proceed with the upgrade of the 132 kV Klaarwater/Hillcrest Overhead

Transmission Lines from Tower 1 to Tower 19 from double circuit twin Elm to

double circuit twin Yew and associated equipment at a total estimated project cost of

R61 200 000.00 (Sixty One Million Two Hundred Thousand Rand only).

(Vote: 80850 (Project TM0139); R5 450 000.00, R42 800 000.00 and

R12 950 000.00 (To be provided in the 2015/16, 2016/17 and 2017/18 Financial

Years respectively); F.C. 79/CA1556)

ADOPTED.

7.10 Review of Schedule of Connection Fees and Charges (7/6/1/2):


With 30 Councillors present, (ANC - 19, IFP - 01, NFP – 01, MF – 01, IND - 01 and

APC - 01) voted in support of the recommendations and 06 DA Councillors

abstained.

With the DA voting against the recommendations during the meeting of the

Executive Committee,


7.10.1 That the revised Connection Fees and Charges as contained in Annexure A attached

to the report of the Head : Electricity dated 2015-05-12, be approved, for

implementation with effect from 01 July 2015.

7.10.2 That the City Manager display and publish the required notices in the manner

prescribed in Section 75A of the Local Government: Municipal Systems Act, 2000

(Act 32 of 2000).





present, 113 Councillors (ANC – 89, MF – 7, NFP – 8, IFP – 6, ACDP – 1, APC -

1 and IND – 1) voted in favour and 38 Councillors (DA) voted against. There

were no abstentions recorded.


vote, ADOPTED.

7.11 Electricity Energy Tariff Revision : Second Schedule and Bulk Tariffs for Financial

Year 2015/2016 (7/6/1/2):



7.11.1 That the annual review of the energy charges and tariffs of the eThekwini Electricity,

which have been informed by increase in bulk electricity costs from Eskom;

increased revenue requirements arising from capital expenditure, operating

expenditure and CPI; continuation with the rationalisation of tariff structure; and a

move towards compliance with national guidelines, be approved for implementation

with effect from 01 July 2015, as per the following Annexures attached to the report

by the Head : Electricity dated 2015-04-22.

Annexure A – Tariff categories and average percentage increases

Annexure B – Detailed tariff structures and rates

Annexure C – Residential embedded generation tariff – Scale 15

7.11.2 That subject to NERSA approval, the City Manager display and publish the required

notices in the manner prescribed in Section 75A of the Local Government: Municipal

Systems Act, 200 (Act 32 of 2000)



present, 106 Councillors (ANC – 89, NFP – 8, IFP – 6, ACDP – 1, APC - 1 and

IND – 1) voted in favour and 38 Councillors (DA) voted against. Seven (7)

Councillors (MF) abstained from voting.


vote, ADOPTED.

7.12 Proposed EThekwini Municipality : Refuse By-Law ( 1/1/3/1/24):



7.12.1 That the proposed Refuse By-Law 2014 attached to the report by the Head : Legal

and Compliance dated 2015-04-14, be approved, and published for comment in the

Ezasegagasini Metro and on the City Hall notice board for a period not less than 30

days to allow the public an opportunity to make representations with regards to the

proposed bylaw.

7.12.2 That should no substantive objections and representations be received from the

public, the Refuse By-law 2014, be sent to Ezasegagasini Metro and the Provincial

Gazette for final publication, with the by-law taking effect on a date as prescribed

therein.



The City Manager advised of the need for the above recommendations to be

amended to indicate that the recommendations were “in principle” approvals.

Following brief discussion on the wording to indicate such approval, and on the

advice of the Head : Legal and Compliance, recommendation 7.12.1 above was

AMENDED by the insertion of the words “for the purposes of consultation”

between the words “be approved” and “and published” in the second line

thereof to read as follows:-

“7.12.1 That the proposed Refuse By-Law 2014, attached to the report by

the Head : Legal and Compliance dated 2015-04-14, be approved for

the purposes of consultation and be published for comment in the

Ezasegagasini Metro and on the City Hall notice board for a period

not less than 30 days to allow the public an opportunity to make

representations with regards to the proposed Bylaw.”

Recommendation 7.12.2 above was AMENDED by the deletion of the phrase

“the Refuse By-law 2014, be sent to Ezasegagasini Metro and the Provincial

Gazette for final publication, with the by-law taking effect on a date as

prescribed therein” and by the substitution of therefor of the phrase “then the

final draft of the Refuse By-law 2014 be submitted to Council for final

approval” to read as follows:-

“7.12.2 That should no substantive objections and representations be

received from the public then the final draft of the Refuse By-law

2014 be submitted to Council for final approval.”

Thereafter, it was

RESOLVED:

7.12.1 That the proposed Refuse By-Law 2014, attached to the report by the Head:

Legal and Compliance dated 2015-04-14, be approved for the purposes of

consultation and be published for comment in the Ezasegagasini Metro and on

the City Hall notice board for a period not less than 30 days to allow the public

an opportunity to make representations with regards to the proposed bylaw.

7.12.2 That should no substantive objections and representations be received from the

public then the final draft of the Refuse By-law 2014 be submitted to Council

for final approval.

7.13 Concept for Establishing Driver Development Parks in the City (26/1/1/4):


The Department was commended for taking pro-active stance in establishing a

network of professionalised ‘one-stop’ facilities for the training and development of

drivers in the City. It was advised that the concept was to establish a number of

Driver Development Parks throughout the City to provide well-resourced facilities in

which driving schools can provide training to learner drivers. The Committee having

requested that an extensive consultation process be undertaken with a view to

ensuring that the relevant stakeholders, role-players and partners were cognisant of

the programme,




7.13.1 That the concept of Driver Development Parks which is still subjected to further

detailed development, as part of the City’s Road Safety Strategy, with the detailed

work on the concept to include development of a financial model and business case,

consultation with relevant stakeholders and potential partners, be approved.

7.13.2 That subject to the approval of .1 above the eThekwini Transport Authority (ETA)

complies with the following requirements:

7.13.2.1 The ETA enlists the City’s Legal Services Unit to draft appropriate by-laws to

support the implementation of Driver Development Parks in the City as well as

general regulation of operations of driving schools in the City.

7.13.2.2 The ETA enlists the Head: Real Estate to develop rental agreements for use of

facilities in the Driver Development Park by driving schools and other interested

parties.

7.13.2.3 The ETA develops a policy for the accreditation of driving schools that will assist in

regulating industry growth as well as managing their admission to operate in the

Driver Development Parks.

7.13.2.4 The ETA commences with engagements with driving schools in the City to present

the concept, and to develop a database of existing driving schools to inform planning

activities.

7.13.2.5 The ETA and Real Estate work together to secure two sites identified for the piloting

of the concept.

7.13.3 That it be noted that the approval given in terms of .1 above is for the concept of

establishing the Driver Development Parks in the City and that the Head: ETA revert

back to the Human Settlements and Infrastructure Committee for the final approval

of the implementation of the final Project once all necessary requirements have been

complied with to the satisfaction of all relevant parties.

ADOPTED.

8. REPORT OF THE GOVERNANCE AND HUMAN RESOURCES COMMITTEE:


(Page R12)

8.1 Implementation of Teenage Health Programme at Emangangeni (19/1/1/3):



8.1.1 That the Executive Committee notes partnership between eThekwini Municipality

and Transnet to undertake Teenage Health Programme in the area of eMangangeni

under the leadership of Inkosi Shozi, which programme is part of Transnet's social

responsibility initiatives aimed at addressing youth health and development.

8.1.2 That it be noted that the programme will be funded by Transnet, with the eThekwini

Municipality only facilitating stakeholder engagements for this process, and the

programme is aimed at tackling the following issues:-



8.1.2.1 Absenteeism of teenage girls at school because of not having female hygiene items.

8.1.2.2 Teenage pregnancy, child headed household, poverty, substance abuse and crime.

8.1.2.3 Lack of proper guidance and education during the transition period between puberty

and adulthood.

8.1.2.4 Low self-esteem due to the inability to actively participate in academic and social

activities; and

8.1.2.5 Lack of career guidance to broaden understanding of the multitude of career options

requirement thereof.

8.1.3 That the Executive Committee notes that a number of 200 (two hundred) girls and

100 (one hundred) boys between the ages of 15-20 years will be selected mainly

from poor households and through community structures to participate in the

programme which will commence in June 2015 and be completed in April 2016.

ADOPTED.

8.2 Request by Independent Electoral Commission for Office Accommodation

(17/2/2/5/2):



8.2.1 That the Head: Real Estate be authorized to enter into a lease agreement by private

treaty with the Independent Electoral Commission (IEC) for use of Kingsburgh and

Pinetown Sizakala Centres, as IEC Regional Offices, for such periods as may be

deemed necessary to enable the IEC to control voter registration and subsequent

elections within the eThekwini Municipal area.

8.2.2 That subject to the adoption of 1. above, the Head: Real Estate be authorized to sign

all documentation on behalf of the Municipality in respect of the lease referred to

in .1 above.

ADOPTED.

8.3 Proposed Establishment of eThekwini Municipal Academy (2/1/4/1/1):



8.3.1 That authority be granted for the establishment of a formal Municipal Academy to

provide training and development initiatives within the City in a centralised and

integrated manner thus improving efficiency and cost-effectiveness, with the

Academy to achieve, amongst other objectives, the development and sustaining

knowledge management programmes that promote and enhance eThekwini

Municipality as an international centre of learning and innovation.

8.3.2 That the Executive Committee approves and recommends to Council the adoption of

the name of the Academy which is proposed to be eThekwini Municipal Academy

(EMA)

8.3.3 That approval be given for the integration of all training initiatives and budget across

the Municipality under the Academy, including the Municipal Institute of Learning

(MILE)



8.3.4 That the Committee approves the provision of proper Information Management

System for the smooth running of the Academy.

8.3.5 That authority be granted to undertake a feasibility study and planning processes to

identify suitable Municipal-owned land for the establishment of the eThekwini

Municipal Academy.

ADOPTED.

8.4 Progress Report on eThekwini Municipal Area-Based Skills Audit (4/3/5/2):



8.4.1 That the Committee notes progress made to undertake skills audit in all 103 Wards of

the eThekwini Municipality in that (i) Data collection system has been developed

and categorised into two sections, namely, unemployed and small businesses; (ii) the

process of recruiting data collectors is underway, with the advert having closed on

15 May 2015 and 120 (one hundred and twenty) graduate students to benefit from

this opportunity; (iii) office space to place graduate students is being identified at the

Ward level; (iv) communication plan has been developed and submitted to the

Communications Unit for input thus having a tool to communicate the project and its

intentions to all stakeholders, it being recorded that the project is set to commence

in June 2015.

8.4.2 That authority be granted for the Head: Skills Development to incur additional costs

in the amount of R171 200.00 (One hundred and Seventy One Thousand Two

Hundred Rand) which costs have been informed by increasing the number of

graduate students to be engaged from 60 (sixty) to 120 (one hundred and twenty);

and the additional amount to be incurred for communication activities, which amount

was not included in the previous submission, thus resulting in the increase in the

project costs from the original approval of the amount of R2 160 000.00

(Two Million One Hundred and Sixty Thousand Rand) to R2 331 200.00

(Two Million Three Hundred and Thirty One Thousand Two Hundred Rand), it

being recorded that these funds have been budget for in the 2014/15 financial year.

Vote No.: 12763.00464 for stipends: R2 131 200.00

Vote No.: 12763.05483 for Communications: R 200.000.00

R2 331 200.00

ADOPTED.

9. REQUEST TO UTILISE SECTION 116(3) OF THE MUNICIPAL FINANCE

MANAGEMENT ACT (MFMA) TO AMEND THE APPOINTMENT OF

CONTRACT NO. 1H-11078 FOR THE ROLL-OUT OF ATERNATIVE HOUSING

AND SERVICING TECHNOLOGIES IN VARIOUS HOUSING PROJECTS (9/1/3

& 22/7/1/1/2)

(Page L11)


9.1 That the report by the Head: Human Settlements, for the proposed amendment to

Contract No. 1H-11078 for the amendment of the appointment of contractors for the

roll-out of alternative housing and servicing technologies in various housing projects

in terms of Section 116 (3) of the Municipal Finance Management Act, be approved

for the following reasons:-



9.1.1 The first stage has been accomplished and demonstration show houses erected had

been assessed and approved.

9.1.2 The show houses met the minimum compliance requirements in accordance with the

Agreement Certificates.

9.1.3 The show houses has been assessed by the professional team and found to be

acceptable in terms of the requirements of the Department of Human Settlements and

NHBRC.

9.1.4 The alternative technology house is completed in about 8 days compared to the

conventional method which takes about 14 days.

9.1.5 The service providers have knowledge of the new concept design that deals with

alternate high density housing development.

9.1.6 The costs will be within the existing housing subsidy quantum and USDG funding

9.1.7 The service providers for alternative housing technology are the sole providers of

their specific products.

9.2 That subject to the adoption of .1 above, public notices be advertised in the relevant

print media requesting comments and/or objections to the proposed amendment to

Contract No. 1H-11078 in line with the requirements of Section 116(3) of the

Municipal Finance Management Act.

ADOPTED.

10. NOTING OF RULE OF ORDER 28 : REQUEST FOR FINANCIAL ASSISTANCE

TOWARDS THE BURIAL OF THE LATE COUNCILLOR JUDALINE IRIS

MARY MULQUEENY:(3/5/15)

(Page L12)


The Committee reflected on the significant contribution made by the late Councillor

Mulqueeny in the South African struggle and being the gender activist fighting

against gender-based violence within the eThekwini Municipal area. She was hailed

for being an independent thinker and exercising leadership characterized by

self-discipline. In response to questions raised pertaining to the provision of civic

funeral and financial assistance thereof, it was advised that the Municipality was

being guided by the submission of requests and the requirements of the Civic Funeral

Policy in making a decision in this regard. Confirmation was given that feedback

would be provided to the Executive Committee on the actual expenditure incurred

for the civic funeral since the amount indicated was just budget provisions.

On this basis


10.1 That, in response to the request made by the Speaker of the eThekwini Municipal

Council, Councillor Logie Naidoo, and in line with the requirements of the Civic

Funeral Policy, the approval given by His Worship the Mayor, Councillor James

Nxumalo, in terms of Rule of Order 28, to accord civic funeral for the late eThekwini

Municipal Councillor Judy Mulqueeny who has played a significant role in fighting

against oppression and gender-based violence, be noted.



10.2 That it be noted that budget provision up to the amount of R200 000.00 (Two

Hundred Thousand Rand) has been made available to cover the costs of the civic

funeral scheduled to take place on Sunday, 2015-06-14 with the allocated funds to be

used to pay for decor and sound system for the memorial service on Friday,

2015-06-12; waiving of payment of City Hall for both the memorial service and the

funeral; catering for 100 VIP in view of the late Councillor having been a national

leader; catering for 1000 people to attend the funeral; hiring of two buses; and any

other logistical-related expenses.

10.3 That, for information purposes, feedback report be provided to the Executive

Committee outlining the actual expenditure incurred for the provision of civic funeral

for the late Councillor Judy Mulqueeny.

(Vote: 103880.06620; R200 000.00)

NOTED.

11. HOSTING BAFANA BAFANA MATCH IN DURBAN (13/2/1/1/1)

(Page L17)

The Committee discussed plans to host the 2017 Africa Cup of Nations qualifier

match between the South African National Soccer Team and the Gambia National

Team. During discussion, the significance of attracting matches to the Moses

Mabhida Stadium was highlighted now that the local Amazulu Football Club, which

had been using the stadium as its home ground, had been relegated from the Premier

Soccer League to the National First Division. Speaking on reservations cited about

the amount of money to be spent for hosting the game, the meeting was informed

that this forms part of the City's operational budget since the City had position itself

to achieve competitiveness nationally and globally in respect of events, including

sports tourism. Confirmation was given that it was anticipated that an income of

approximately R1.2 million would be generated from ticket sales, which was the

projection of the price of the ticket and expected attendance by soccer fans.


11.1 That authority be granted for the eThekwini Municipality to host the 2017 Africa

Cup of Nations qualifier match between the South African National Soccer Team

and the Gambia National Team on Saturday, 2015-06-13 at the Moses Mabhida

Stadium at the cost of R2.5 million to be funded from Bafana Bafana and Soccerex

budget respectively, with the projected income of approximately R1.2 million being

anticipated in return.

11.2 That, subject to the approval of .1 above, authority be granted for the City Manager

to enter into agreement with the South African Football Association for the hosting

of the match referred to in .1 above.

(Vote: 15021.10569.00003; R2 500 000.00 (Provided 2014/15 Budget)

ADOPTED.

12. YOUTH DAY COMMEMORATION (19/1/1/3)

(Page L15)

The activities planned to commemorate Youth Day during the month of June 2015

were presented to the Committee. The programme was commended it being pointed

out that activation should commence forthwith to ensure maximum participation by

youth from all walks of life.




12.1 That Council notes activities to be implemented by the eThekwini Municipality to

commemorate Youth Day during the month of June 2015, which activities included

the Mayoral Cup Launch on 2015-06-11 at the Moses Mabhida Stadium ahead of the

African Cup of Nations qualifier match between South Africa and Gambia; Youth

Day commemoration on 2015-06-21 at the People's Park to celebrate the role played

by youth in the liberation of South Africa; Youth in Business Summit from 24 to

25 June 2015 at the Inkosi Albert Luthuli International Convention Centre to unlock

and stimulate entrepreneurship potential; Student Financial Relief Trust Fund Launch

on 2015-06-26 at the Olive Convention Centre to officially inform stakeholders

about the fund, celebrate achievements thus far; and lobby for sponsorships from

private sector to stimulate the fund for broader assistance to students; and Youth

Council in a form of eThekwini Municipal Council sitting on 2015-06-29 where

youth members nominated by eThekwini Municipal political parties will be given a

platform to deliberate on youth development issues and the support thereof by the

eThekwini Municipality.

12.2 That authority be granted for the City Manager to incur expenditure in the total

amount of R7 177 500.00 (Seven Million One Hundred and Seventy Seven Thousand

Five Hundred Rand), as per the breakdown detailed in the table below, to fund the

Youth Month Programmes outlined in .1 above, it being recorded that funding will

be allocated from savings identified across the various Units of the Municipality.

Financial Implications:

Mayoral Cup Launch:

Launch Budget (Phase 1)

DESCRIPTION VOTE NUMBER COST

Venue R5 000.00

Refreshment an Beverages R30 000.00

Technical R30 000.00

Branding R30 000.00

TOTAL R95 000.00

Ward and Zonal Competitions Budget (Phase 2) Budget for 2015/16


Draw R100 000.00

Tournament logistics R130 000.00

Technical Requirements R150 000.00

Ward Based Games (Football, Transport and

Refreshments)

R250 000.00

TOTAL R630 000.00



Grand Finale Budget (Phase 3)


Tournament logistics R150 000.00

Transport and Refreshments R150 000.00

Technical Requirements R100 000.00

Mobilisation and Communication R200 000.00

Awards R50 000.00

TOTAL R650 000.00

Youth Day Commemoration (5000 People)


Buses (Transport) 12735.12331 R385 000.00

Marquees and Related Staff R760 000.00

Refreshments R370 000.00

Promotional Material R425 000.00

Sound System R300 000.00

Entertainment R160 000.00

SAFETY Officer and Marshalls R60 000.00

TOTAL R2 460 000.00

Youth in Business Summit


Venue Hire and Logistics (Conference and

Dinner)

10371.07855 R2 000 000.00

Marketing and Promotion R350 000.00

Exhibition R200 000.00

Entertainment R300 000.00

TOTAL R2 850 000.00

Student Financial Relief Trust Fund Launch


Venue Hire and Catering 11642.07850 R80 000.00

TOTAL R80 000.00

Youth Council


Sound R25 000.00

Catering R56 000.00

Buses R31 000.00

Marketing and Promotion R150 000.00

Venue Hire (City Hall) R0.00*

TOTAL R262 500.00



*R150 000.00 (If it is not City Hall)




APC - 1 and IND – 1) voted in favour and 39 Councillors (DA) voted against.



vote, ADOPTED.

___________

(At this juncture the Speaker extended a warm welcome to MPL

MJ Mazibuko).

JS NXUMALO

CHAIRPERSON

___________

(The Deputy Mayor thereafter presented the Third Report of the

Executive Committee).



THIRD REPORT OF THE EXECUTIVE COMMITTEE (Meeting held on Tuesday, 2015-06-23)

PRESENT : Executive Committee Members JS Nxumalo (Mayor and Chairperson),

NF Shabalala (Deputy Mayor), JN Cele, HU De Boer, SN Gumede,

ZRT Gumede, ZM Mncwango, BR Mtshali, MS Nkosi and F Peer.

_____________

1. REPORT OF THE ECONOMIC DEVELOPMENT AND PLANNING


1.1 Request to Authorise City’s Sponsorship of “UZALO” Television Series (20/2/2):

(Page 4 : Economic Development and Planning Committee – 2015-06-11)

During consideration of this matter at the Executive Committee level, the filming of

UZALO television series in the area of KwaMashu was considered a significant

stride for Durban in terms of promoting creative art industry. Cognisance was taken

that a film of this magnitude was the first to be made in the shores of Durban, which

was generally lagging behind the Cities of Johannesburg and Cape Town when it

comes to creative art. Sponsoring UZALO was considered part of the City's

initiatives to form partnerships with institutions where local community will benefit.

With the brand "Zulu" having been declared one of the top 5 brands internationally,

UZALO was considered best suited to promote this brand even further with the series

promoting township culture.

The economic difference already made by UZALO in terms of youth employment

was highlighted, including unlocking and nurturing talent of emerging actors and

actresses mainly from previously disadvantaged backgrounds. Furthermore, several

other small businesses were benefitting as a result of this television series such as

catering; fashion design; and beauty businesses. Speaking on the concern raised

pertaining to sponsoring a single profit-making company, the meeting was informed

that sponsorships of this nature had previously been made to other film-making

companies and that the City is working with Durban Film office established to

promote eThekwini as a film destination.


1.1.1 That, whereas Stained Glass Facilities (Pty) Ltd, the company producing the

SABC 1 television series called "UZALO" currently being filmed in KwaMashu, in

the North of Durban, requests sponsorship in the amount of R8 502 321.00

(Eight Million Five Hundred and Two Thousand, Three Hundred and Twenty One

Rand), an amount of R5 000 000.00 (Five Million Rand) be approved for the

company to complete the filming of 156 episodes of this television series, which

sponsorship is part of the City's contribution in promoting the film industry within

the City and with the television series creating job opportunities for the youth in

particular and also showcasing township culture in Durban.

1.1.2 That subject to the approval of .1 above, the City Manager be authorised to conclude

a Memorandum of Agreement (MOA) to disburse funds to Stained Glass Facilities

(Pty) Ltd to give effect to the above.



1.1.3 That subject to the approval of .1 and .2 above, eThekwini Municipality be duly

authorised in accordance with the MOA to disburse funds to Stained Glass

Facilities (Pty) Ltd.

1.1.4 That subject to the approval of .1, .2 and .3 above, the City’s leadership be kept

informed of progress and ultimate outcomes.

1.1.5 That the Head: Economic Development & Planning liaise with the Deputy City

Manager: Finance to identify savings of R3 502 321 (Three Million Five Hundred

and Two Thousand Three Hundred and Twenty One Rand) to fulfill the sponsorship

request of R8 502 321 (Eight Million Five Hundred and Two Thousand Three

Hundred and Twenty One Rand) by Stained Glass Facilities (Pty) Ltd.

(Vote No.: 12020.10620; R5 000 000.00 (Excl. VAT) (To be met through 2014/15

Virements Budget); F.C. No.: 18/61.)

MOTION TO AMEND

In terms of Rule of Order 20(4), Councillor JM Dlamini, seconded by

Councillor SN Gumede, moved as a procedural motion that recommendation

1.1.2 above be amended to read as follows:

“1.1.2 That subject to the approval of .1 above and in compliance with

the provisions of Section 67 of the Municipal Finance Management Act

(MFMA), the City Manager be authorized to conclude a Memorandum

of Agreement to disburse the funds to Stained Glass Facilities (Pty) Ltd

to give effect to the above”

CARRIED

The above-mentioned motion to amend was unanimously CARRIED.

However, as some Councillors were not in support of the above

recommendations of the Executive Committee the matter was put to the vote.

With 155 Councillors present, 113 Councillors (ANC – 89, MF – 6, NFP – 8,

IFP – 7, ACDP – 1, APC - 1 and IND – 1) voted in favour and 42 Councillors

(DA) voted against. There were no abstentions recorded.

Whereafter, it was by majority vote

RESOLVED:

1.1.1 That, whereas Stained Glass Facilities (Pty) Ltd, the company producing the

SABC 1 television series called "UZALO" currently being filmed in KwaMashu, in

the North of Durban, requests sponsorship in the amount of R8 502 321.00

(Eight Million Five Hundred and Two Thousand, Three Hundred and Twenty One

Rand), an amount of R5 000 000.00 (Five Million Rand) be approved for the

company to complete the filming of 156 episodes of this television series, which

sponsorship is part of the City's contribution in promoting the film industry within

the City and with the television series creating job opportunities for the youth in

particular and also showcasing township culture in Durban.



1.1.2 That subject to the approval of .1 above and in compliance with the provisions of

Section 67 of the Municipal Finance Management Act (MFMA), the City Manager

be authorized to conclude a Memorandum of Agreement to disclose the funds to

Stained Glass Facilities (Pty) Ltd to give effect to the above

1.1.3 That subject to the approval of .1 and .2 above, eThekwini Municipality be duly

authorised in accordance with the MOA to disburse funds to Stained Glass Facilities

(Pty) Ltd.

1.1.4 That subject to the approval of .1, .2 and .3 above, the City’s leadership be kept

informed of progress and ultimate outcomes.

1.1.5 That the Head: Economic Development & Planning liaise with the Deputy City

Manager: Finance to identify savings of R3 502 321 (Three Million Five Hundred

and Two Thousand Three Hundred and Twenty One Rand) to fulfill the sponsorship

request of R8 502 321 (Eight Million Five Hundred and Two Thousand Three

Hundred and Twenty One Rand) by Stained Glass Facilities (Pty) Ltd.

(Vote No.: 12020.10620; R5 000 000.00 (Excl. VAT) (To be met through 2014/15

Virements Budget); F.C. No.: 18/61).









DR Pillay.

1.2 Spatial Development Plans: 2014/15 Minor Annual Review of the Central, South,

Outer West and North Spatial Development Plans (21/5/1):


Having noted public concerns regarding planning around D'MOSS areas, ownership

of rivers and other environmental concerns, Members of the Economic Development

& Planning Committee were given the assurance by officials present that the

Department was still open to consultation with conservancies hereon.


That the Annual Review of the Central, South, Outer West and North Spatial

Development Plans (2014/15), be supported.

ADOPTED.



1.3 Corporate Governance of Information and Communication Technology Policy

(10/P):



1.3.1 That the Corporate Governance of Information and Communication Technology

Policy and Framework as developed by the Department of Public Service and

administration (DPSA), in co-operation with the Government information

Technology Officer Council, be approved for implementation to achieve, inter alia,

accountability and responsibility for ICT decision-making as well as achieving and

monitoring ICT service delivery performance and conformance to ICT policies

and legislation.

1.3.2 That subject to the approval of .1 above, the Chief Information Officer: Information

Management proceed with implementation of the Policy and Framework.

1.3.3 That subject to the approval of .1 and .2 above, the Chief Information Officer:

Information Management keeps the Economic Development and Planning

Committee informed of the progress on implementation and potential impacts of the

Policy and Framework.

ADOPTED.

1.4 Request to Authorise Event Leveraging and Destination Promotion Through Event

Partnerships During Durban Fun Season and Festive Season (13/2/1/2/1):

(Page L14 : Economic Development and Planning Committee – 2015-06-11)


1.4.1 That the City's partnership with the South African Music Conference (SAMC) and

Woz'eDurban respectively, during Funseason and Woz'eDurban, for territorial

marketing and promotion, be approved.

1.4.2 That financial commitment of R1 500 000.00 (One Million Five Hundred Thousand

Rand), excluding VAT, for South African Music Conference (SAMC) and

R1 000 000.00 (One Million Rand), excluding VAT, for Woz 'eDurban, be approved.

1.4.3 That the Head Business Support, Tourism and Markets be authorised to negotiate and

conclude contracts with the various event owners listed in Item 6.2 of the report by

the City Manager dated 2015-05-29.

1.4.4 That subject to the approval of .1, .2 and .3 above, the Head: Business Support,

Tourism and Markets keep the City's leadership informed of progress and the

ultimate outcome.

ADOPTED.

1.5 Youth Month Activities (19/1/1/3):

(Page L15 : Economic Development and Planning Committee – 2015-06-11)

At the Executive Committee level the subject matter of this item was changed from

Youth Day Commemoration to Youth Month Activities to ensure necessary

alignment with the issue of Youth in Business Summit under consideration.

The City Manager thereafter confirmed that this item also form part of the overall



submission of the Youth Month Activities already approved by the Executive

Committee but was also submitted to the Economic Development and Planning

Committee for approval since the matter fell under the jurisdiction of this

Committee. He then advised that apparently Youth Month Activities have been

overtaken by events and were now only submitted for noting.

The Democratic Alliance dissented on this matter at the Economic Development and

Planning Committee.


That the following budget for the Youth in Business Summit be noted as approved

by the Executive Committee at its meeting held on 2014-06-09.

YOUTH IN BUSINESS SUMMIT (Financial Implications)

Description Cost

VOTE NUMBER : 10371.07855

ITEMS

Venue Hire & Logistics (conference and dinner) R2 000 000.00

Marketing and Promotion 350 000.00

Exhibition 200 000.00

Entertainment 300 000.00

TOTAL R2 850 000.00

ADOPTED.

2. REPORT OF THE FINANCE AND PROCUREMENT COMMITTEE: MEETING

HELD ON 2015-06-18

(Page R4)

2.1 Special Rating Area - Falcon Street, Iris Avenue, Penguin Street and Oak (7/2/1):

(Page 15 and attached as Annexure A: Finance and Procurement


During discussion of the above-mentioned report the following issues inter-alia were

highlighted:-

● Invoice from Ultimate Protection Services dated 28 August 2014. It was noted

that the start date of the Company's business was 2014/11/11 as per the

certificate issued by the Companies and Intellectual Property Commission. It

was submitted that the Company registration thereon had been delayed,

however the Legal and Compliance Department had considered the matter

taking into consideration Section 67 of the Municipal Finance Management

Act.

● Upon an enquiry relative to the Vote/or Financial Certificate (FC) which would

be utilised for the payment of the expenses incurred for security services

rendered for the period August to October, totalling R96 750. 00 (Ninety Six

Thousand Seven Hundred and Fifty Rand Only) to FIBO SRA NPC, it was

suggested that such payment be made from the monies collected from the

residents.




2.1.1 That eThekwini Municipality approves the dissolution of the Special Rating Area

bounded by the full length of Falcon Street, Iris Avenue, Penguin Street and Oak

Avenue and included properties on both sides of the road.

2.1.2 That the additional rate of 0.00264 approved for 2014/2015 in respect of all

categories of property, be cancelled with effect from the end of January 2015.

2.1.3 That approval be given, for the retrospective payment to FIBO SRA NPC for

expenses incurred for security services rendered for the period August to October

2014 totaling R96 750.00 (Ninety Six Thousand Seven Hundred and Fifty Rand

only), in terms of Section 67 of the Memorandum of Agreement, from the monies

collected from the residents.

2.1.4 That the balance of the special rate billed with effect from 01 August 2014 be

credited to the consolidated billing account of the relevant property owners who have

paid additional rate.

ADOPTED.

2.2 Expropriation of Land for Regional Fire Station : Erf 10626 Verulam : Wicks Realty

CC (Ref: 17/2/1/1/26/14.JN) (17/2/1/1/4):



2.2.1 That an offer and payment of compensation in the sum of R2 538 000.00 (Two

Million Five Hundred and Thirty Eight Thousand Rand Only), excluding VAT, be

made to Wicks Realty CC (Registration Number: 200824080523) in terms of Section

11 (1) of the Expropriation Act read with Section 25 (3)(b) of the Constitution of

South Africa together with interest calculated in terms of Section 12 (3) of the

Expropriation Act in respect of Erf 10626 Verulam, Registration Division FU, and

Province of KwaZulu-Natal in extent 1.2728ha.

2.2.2 That subject to the adoption of .1 above, the Head: Real Estate be authorized to


transfer to eThekwini Municipality.

(Vote No.: 1.71153.21022; R2 615 000.00 (2014/2015); F.C. 1415/18)

NOTE: Approved by the Community and Emergency Services Committee on

2015-06-04.

ADOPTED.

2.3 Revision of Rental : South African Scout Association : 18 Harvard Place, Montclair:

(File Ref : Lease 215) (17/2/1/2/5):



2.3.1 That the rent for the lease held by the South African Scout Association in respect of

Erf 2095 Mobeni, Registration Division FT in the Durban Entity, Province of

KwaZulu-Natal, in extent 1158m² as depicted on Diagram S.G No. 3433/1964 for the

five year period commencing 16 May 2015 and expiring 15 May 2020 be R170 per

month for the first year escalating thereafter by 9% per annum for the ensuing

4 years, it being recorded that the rental and rate of escalation shall be subject to

review after each 5 year period.



2.3.2 That subject to the adoption of .1 above all costs of documenting the revision of

rental be borne by the Lessee.

ADOPTED.

2.4 Monthly Report on Awards Made by the City for the Month of May 2015:

(Page 95 and attached as Annexure B: Finance and Procurement


During discussion of the Supply Chain Management report on page 95 of the agenda

and prior to the following clarities being provided to questions raised, Contract

Numbers 1H-11800, 1M-15779, 1M-15780 and 1H-11800 on pages 103, 104, 105

and 114 of the agenda were withdrawn from the aforesaid report:-

● Companies being awarded contracts/tenders without valid CIDB

Certificates. It was felt that a huge amount of money was being spent on

companies without valid CIDB Certificates. Upon an enquiry related to

measures that would be done to ensure accountability by the Supply Chain

Management Department, the Deputy Head : Policy and Support Services

assured the Committee that proper awarding processes were being followed.

She advised that proper verification was being conducted before the reports

including the supporting documents were submitted to the Bid Committees.

It was advised that statutory requirements were verified and the Department ensured

that the printout of CIDB Certificates were made available to the Bid Committees

when considering the award of contracts/tenders Further, it was advised there was a

compliance list to further ensure that all statutory documents were submitted by

companies and that the Auditor General was in agreement with the current Supply

Chain Management controls.

● Similar company registration and tax numbers for K Naidu t/a KN Builders

and SR Recoveries. It was advised that the Constitution of South Africa

allowed for a "One Man Business" whereby the companies would register

with the South African Receiver of Revenue Services (SARS) and therefore

would have the similar company registration and tax numbers.


2.4.1 That the monthly report of the City Manager dated 2015-06-10, relative to awards

made by the City for the month of May 2015, as presented, be noted.

2.4.2 That it be noted that where the information is available for wards and registration

numbers, it is included in the report, as information used to compile the report is

taken from submissions made by the Units.



violation of SCM Policies and MFMA provisions are observed.

2.4.4 That the City Manager shall table a report to the Committee relative to the

disciplinary, criminal and recovery actions taken, it being noted that the City

Manager can only respond when the reports are available.

Recommendations 2.4.1, 2.4.2 and 2.4.3 NOTED and Recommendation 2.4.4

ADOPTED.



2.5 Irregular Expenditure : 2013/14 and 2014/12015 Financial Year (9/1/3):

(Page 122 and attached as Annexure C: Finance and Procurement


During discussion of the above-mentioned report at the Finance & Procurement

Committee level concerns were expressed on, inter-alia, the following issues.

● Extension of Contracts. It was felt that the Heads of Departments should be

aware when contracts would end and be able to motivate for a new contract

either three months before the existing contract expired. It was further felt

that the system should be able to “flag” when a contract would expire in

order to avoid irregular expenditure.

● Reasons for Irregular Expenditure. It was requested that in future meetings

the Department provide a report stating reasons for irregular expenditure.

● Disciplinary Actions on staff permitting the irregular expenditure be

enforced. It was stated that the Municipal Public Committee had been

requested to consider the report on disciplinary action for 2013/2014.

It was requested that a report detailing all disciplinary actions from July 2014 to date

be provided to the next meeting of the Finance and Procurement Committee.

● Water and Sanitation Projects. It was submitted that the delays was a result

of consultants and the Department had to regularize the expenditure by

recommending to the Bid Adjudication Committee.

Thereafter, the Deputy City Manager elaborated on the concerns raised but

Councillors RJ Crouch, TP Collins, RD Macpherson, J Singh, D Ganesh,

ZM Mncwango, S Hoosen and A Beetge of the Democratic Alliance and Councillor

NC Gumede of Inkatha Freedom Party dissented on this matter.

At the Executive Committee level it was reiterated that lack of effective contract

management jeopardise the City's vision to achieve clean audit. On the other hand,

mention was made that uncertainty exists whether investigations are conducted on

the allegations of non-compliance with the Supply Chain Management (SCM)

Regulations. During discussion, a unanimous view was expressed that the use of

Section 36 and Section 116(3) of the SCM Regulations should be limited to cases of

bona fide emergencies rather than being used as an alternative where there have been

an element of poor time management.

An indication was given that generally there has been reduction on irregular

expenditure. The attention of the meeting was drawn to the fact that there was

nothing unscrupulous about irregular expenditure incurred in terms of this report but

that it was a matter of a difference of opinions where the Auditor-General perceived

some of the contracts to be driven by poor time management. However, it was

acknowledged that in certain instances line departments have deviated from the SCM

Regulations in particular in relation to continuing using expired contracts and/or

leases. Meanwhile, the pressure as a result of service delivery protest was also

mentioned to form part of the reasons for deviations in certain instances.

Nevertheless, the importance of getting line departments to commence with contracts

or lease renewal timeously was stressed.



On the issue of conducting investigation, the meeting was informed that MPAC

played oversight role on finance issues as they pertain to supply chain management.

As such, there have been cases being dealt with at this level. For effective oversight

role at the Executive Committee level, the City Manager undertook to furnish the

Committee with a report on cases having been dealt with by the City Integrity and

Investigations Unit for consideration in-committee at this level.

Given the above explanation,


2.5.1 That the condonement of the Irregular Expenditure by Council totaling

R295.8 Million for 2013/14 and R107.1 Million for 2014/15 financial years as

reflected in Annexure A to the report of the City Manager dated 2015-06-12 be

supported, it being noted that this expenditure has been retrospectively approved by

the Bid Adjudication Committee (relevant authority) in terms of Section 36 (1)(b) of

the Supply Chain Management Regulations, with the balance of R6.6 Million being

in the process of finalization. Accordingly, authority is granted to the Chairperson of

the Finance and Procurement Committee to submit the balance of R6.6 Million

directly to Executive Committee once it has been approved by the Bid Adjudication

Committee.

2.5.2 That it be noted that goods and services have been received and value for money has

been certified by the respective Heads of Departments.

2.5.3 That it be noted that the regularization of expenditure referred in above relates only

to the contravention of Municipal Finance Management Act, No.56 of 2003 and

Supply Chain Management Policy issues and that depending on the outcome of

further investigations by the Speaker, the City Manager, Internal Audit, City

Integrity and Investigations Unit (CIIU), Line Departments and Municipal Public

Accounts Committee (MPAC), further action may arise, including disciplinary

action, recovery of monies and criminal charges being instituted where applicable.

2.5.4 That an action plan in terms of disciplinary actions taken in terms of .3 above be

provided to the Finance and Procurement Committee on a monthly basis.

2.5.5 That subject to the approval of Council, a report be submitted to COGTA, National

Treasury and the Office of the Auditor General in terms of Section 32 and Section

170 of the Municipal Finance Management Act No. 56 of 2003.


Executive Committee on the basis that such irregular expenditure could not be

condoned, the matter was put to the vote. With 152 Councillors present, 101

Councillors (ANC – 85, MF – 6, NFP – 8, APC - 1 and IND – 1) voted in favour

and 51 Councillors (DA –42, IFP – 8 and ACDP – 1) voted against. There were

no abstentions recorded.

The above recommendations of the Executive were by majority vote

ADOPTED.



The DA and the IFP requested a division and their names are recorded

hereunder:

Democratic Alliance








DR Pillay.

IFP

Councillors MS Nkosi, NB Iyer, S Bhanprakash, MR Bhengu, NC Gumede,

TJ Gumede, M Mngadi and BO Zondo

2.6 Report on Investments (7/11/4):



That the report on the investments of the eThekwini Municipality as at 2015-05-31,

prepared and submitted by the City Manager as per his report dated 2015-06-02 and

as per the requirements of the Municipal Cash Management and Investment

Regulations of the Municipal Finance Management Act, 2003, be noted.

NOTED.

2.7 Budget Statement Report for the Month Ending 31 May 2015:

(Page 132 and attached as Annexure D: Finance and Procurement


During discussion of the above-mentioned statement report at the Finance and

Procurement Committee level the following issues, inter-alia, were highlighted:-

● Dube Trade Port: It was requested that the relevant Department submit a

report updating the Committee on the results of the investments.

● Housing: It was enquired how much the Province had been prepared to

refund to the Municipality in terms of debt to the Municipality.

● Debtors Age Analysis: It was enquired how was the debt allowed to

accumulate from 30 days to 90 days.

● Credit Control: A budget of R5.8 billion had been provided for bad debt.

● Illegal Connections

● Estimated Annual Target for the number of housing units delivered. It was

submitted that the target may have been changed by the Human Settlement

and Infrastructure Committee. Councillors were requested to direct the

query to the same Committee.

● Borrowing Ratio



● Ingonyama Trust: It was advised that the issue was related to the

electrification and water consumption and not Ingonyama Trust. However it

was advised that this had been an old case which had gone through debt

dispute process.

● Emtateni Logistics and Transnet: The eThekwini Municipality’s Legal and

Compliance Department had lodged a claim against the liquidators.

● Water Loss: It was submitted that the rolling average of 36.3% on water loss

would be reduced to 25% in five years. The issue of illegal connection and

tampering of meters was indicated as another reason for water loss.

It was noted that the economic aspects relative to the Dube Trade Port was being

dealt with by the Economic Development and Planning Committee.

A progress report with regard to the debt owed by the Province relative to the

Housing Projects was provided. It was advised that timelines stating when the

Province should have paid off the monies owed to the Municipality could not be

stated at this meeting. However, it was further advised that the Minister of Human

Settlement Department in the Province had indicated in his budget statement that

there were monies earmarked to pay eThekwini Municipality. It was submitted that a

follow up meeting between His Worship, the Mayor, Councillor JS Nxumalo and the

Minister of Human Settlement : KwaZulu-Natal Department would be convened to

further discuss a way forward on this matter.

Councillors RJ Crouch, TP Collins, RD Macpherson, J Singh, D Ganesh,

ZM Mncwango, S Hoosen and A Beetge of the Democratic Alliance dissented on

this matter.

At the Executive Committee level the issue of Municipal debt was discussed in

particular the aspect of doubtful debt which statement indicates that there were no

prospects of recovering monies due to the Municipality. This was considered to pose

a threat to the City's cash flow. Other major threats to the City stemmed from

looming water shortage with this being imminent especially in the northern parts of

eThekwini now that water in the Hazelmere Dam continues to drop below

unmanageable levels and with no prospects of rain the situation was therefore

becoming worse.

On the issue of debt recovery, the general view was that eThekwini reflected stability

in this regard since 103% represented positive recovery opportunities. Confirmation

was given that the Credit Control Policy has since been strengthened to eliminate any

loopholes and implement vigorous approach for debt collection.

The issue of water crisis was considered to be a challenge Provincial-wide. As such,

the MEC for COGTA has sought the assistance of the National Department Water

and Sanitation and the meeting in this regard was convened to take place the

following day on 2015-06-24 at 10h00 in Pietermaritzburg.


That the Budget Statement Report for the Month Ending 2015-05-31, prepared and

submitted by the City Manager as per his report dated 2015-06-11 and as per the

requirements of Section 71 of the Municipal Finance Management Act (MFMA) and

in terms of Government Notice No 32141 dated 17 April 2009, be noted.

NOTED.



2.8 Amendments to the Local Government: Municipal Property Rates Act:

(Page 263 and attached as Annexure E: Finance and Procurement


The Finance and Procurement Committee considered a report dated 2015-06-10 by

the City Manager, the purpose of which was to advise the Committee about the

Amendments to the Local Government : Municipal Property Rates Act.


That the report by the City Manager dated 2015-06-10, relative to Amendments of

the Local Government : Municipal Property Rates Act, be noted.

NOTED.

3. PROPOSED NEW ETHEKWINI MUNICIPALITY PLANNING AND LAND USE

MANAGEMENT BY-LAW; 2015 (1/1/3/1/26)

(Page 29)


That the Planning and Land Use Management By-Law be approved and be published

for comment in the Ezasegagasini Metro, the Isolezwe, the Mercury, and on the

City Hall Notice Board for a period not less than 30 days, to allow the public an

opportunity to make representation with regard to the proposed by-law.

The City Manager advised of the need for the above recommendation to be

amended to indicate that the recommendation was an “in principle” approval.

Following brief discussion on the wording to indicate such approval and on the

advice of the Head : Legal and Compliance the above recommendation was

AMENDED by the insertion of the words “for the purposes of consultation”

between the words “be approved” and “and be published” in the first line

thereof to read as follows:

“That the Planning and Land Use Management By-Law be approved for

the purposes of consultation and be published for comment in the

Ezasegagasini Metro, the Isolezwe, the Mercury, and on the City Hall

Notice Board for a period not less than 30 days, to allow the public an

opportunity to make representation with regard to the proposed

by-law.”

Thereafter, it was

RESOLVED:

That the Planning and Land Use Management By-Law be approved in principle for

the purposes of consultation and be published for comment in the Ezasegagasini

Metro, the Isolezwe, the Mercury, and on the City Hall Notice Board for a period not

less than 30 days, to allow the public an opportunity to make representation with

regard to the proposed by-law.



4. ADJUSTMENT BUDGET FOR VARIOUS COMMUNITY RESIDENTIAL UNITS

(7/1/2/2 & 22/8/2/1)

(Page 30)

The need to approve adjustment budget in the amount of R31 859 000.00 (Thirty

One Million Eight Hundred and Fifty Nine Thousand Rand) in the 2014/15

financial year to upgrade and rehabilitate Community Residential Units (CRUs)

within the eThekwini Municipal area was explained. It was confirmed that the

overall contract authority would not be exceeded as a result of this adjustment budget

but that a surplus of R2 million was rather anticipated. It was further confirmed that

the adjustment budget was budgeted for and would be funded by the Department of

Human Settlements.

General challenges were cited surrounding CRUs and therefore the need for the

Municipality to address issues including the overall management for sustainability

purposes; possibility of extending CRUs to broaden scope of beneficiaries; enforcing

the use of CRUs as family units as per the vision of the City; inculcating culture of

the payment of rent; and the construction of units to correspond with the number of

people relocated to temporary shelters to avoid chaos at the unit allocation stage.

It was therefore agreed to hold a workshop with a view to discussing and

determining a way forward on all issues involving CRUs.


4.1 That in terms of Sections 29 of the Municipal Finance Management Act, authority be

granted to adjust the approved adjustment budget in respect of Community

Residential Units (CRUs) with the amount of R31 859 000.00 (Thirty One Million

Eight Hundred and Fifty Nine Thousand Rand) in the 2014/15 financial year as per

the breakdown contained in the table below, it being recorded that the adjustment

budget will be funded from the approved Department of Human Settlements grant.

CRU (Hostels) Approved Budget 2014/2015 Additional Budget Required

2014/2015

Umlazi Glebe R9.500m R4.960m

SJ Smith R7.155m R4.076m

Jacobs R4.000m R1.958m

Klaarwater R5.000m R5.083m

Umlazi T R18.000m R6.020m

KwaMakhutha R5.000m R1.627m

KwaMashu R34.000m R4.853m

Dalton R7.500m R3.282m

Kranskloof R13.000m R0.000m

Thokoza R0.200m R0.000m

TOTAL R103.355m R31.859m

4.2 That the Head: Human Settlements co-ordinate a workshop to provide a platform for

Councillors to discuss, inter alia, issues including the overall management of CRUs

for sustainability purposes; possibility of extending CRUs to broaden scope of

beneficiaries; enforcing the use of CRUs as family units as per the vision of the City;

inculcating culture of the payment of rent; and construction of units corresponding to

the number of people relocated to temporary shelters to avoid chaos at the unit

allocation stage.

ADOPTED.



5. FUTURE EXPANSION OF THE PHOENIX WASTEWATER TREATMENT

WORKS FROM 50MI/d TO 100Mi/d: TONGAAT HULETT DEVELOPMENTS

PROPRIETARY LIMITED: PLAN SJ 4682/7 (REF: 17/2/1/1/22/8.JN)(23/1/1/2/1/2)

(Page 34)

It was recalled that the above report has been dealt with by Council at its previous

meeting in May 2015 where recommendations related thereto were adopted with the

proviso that further engagements be held with Tongaat Hulett Development (Pty) Ltd

to negotiate reduction of price for land required for infrastructural development. The

attorneys of Tongaat Hulett has since confirmed that further price reduction was not

possible in view of the company having already agreed to sell the land to eThekwini

at the value of R61 425 547.32 (Sixty One Million Four Hundred and Twenty Five

Thousand Five Hundred and Forty Seven Rand Thirty Two Cents) which represented

a reduction from the land market value of R72 000 000.00 (Seventy Two Million

Rand).

On the issue whether there would be any contribution to be made by Tongaat Hulett

on infrastructural upgrade in view of the company to benefit from the Cornubia

development, it was confirmed that this would be determined using a formula

designed to assess contributions for specific projects. Given the circumstances, it was

noted that the City has no other option but to accept the land price being offered.

Accordingly,


That the City Manager together with the Head: Real Estate proceed with the

implementation of Council decision of 2015-05-27 to purchase land from Tongaat

Hulett for future expansion of the Phoenix Wastewater Treatment Works at the price

of R61 425 547.32 (Sixty One Million Four Hundred and Twenty Five Thousand

Five Hundred and Forty Seven Rand Thirty Two Cents).

ADOPTED.

6. REQUEST FOR APPROVAL IN TERMS OF THE MUNICIPAL FINANCE

MANAGEMENT ACT SECTION 116(3) FOR ADDITIONAL CONTRACT

AUTHORITY FOR CONTRACT NO.1T-10244: CONSULTING ENGINEERING

SERVICES FOR THE PROJECT MANAGEMENT, DETAILED DESIGN AND

IMPLEMENTATION OF THE ETHEKWINI IRPTN PHASE 1-ROUTE

C3B-UMNGENI VIADUCT TO PINETOWN (26/3/1/1 & 9/1/3)

(Page 38)

The City Manager advised that the extension basically relates to the adjustments in

terms of consultation fees which were generally linked to the contract value. To

ensure that the Municipality was paying within the appropriate fee guidelines it was

advised that the Internal Audit would be engaged for verification purposes to avoid

the City to subsequently being subjected to audit findings by the Auditor-General in

this regard.



Accordingly,


6.1 That authority be granted for the Head: eThekwini Transport Authority to increase

contract authority under Contract IT: 10244 – Consulting Engineering Services for

the Project Management, Detailed Design and Implementation of eThekwini

Integrated Rapid Public Transport Network, Phase 1 – Route C3B: Umgeni Viaduct

to Pinetown in terms of Section 116(3) of the Municipal Finance Management Act

for the following reasons:-

6.1.1 Enhanced road pavement design following a technical review of the life cycle costs.

6.1.2 Adjustments of the system specifications post preliminary design to include for

National Department of Transport operational aspects such as pre-paid closed

ticketing system.

6.1.3 Escalation on the estimated final construction cost. The original estimate as provided

in the preliminary design was prepared in 2012.

6.1.4 The costs associated with the inclusion of the Empowerment Charter.

6.1.5 Additional works related to service relocations which were not foreseen in the

preliminary design stage.

6.1.6 Adjustments to accommodate broader City initiatives such as Local Economic

Development Facilitation, portion of the Western Aqueduct and localised road

infrastructure improvements.

6.1.7 Enhancement to the specifications for IRPTN stations and terminals.

6.2 That subject to the adoption of .1 above, public notices in terms of Section 116 (3) of

the Municipal Finance Management Act requesting comments and/or objections to

the proposed extension be advertised in the relevant print media for the prescribed

period of time.

ADOPTED.

7. REVISED BUDGET FOR HUMAN SETTLEMENT PROJECTS (7/1/2/2 &

22/7/1/1/2)

(Page 79)

It was reported and noted that this matter involves the transfer of funds from

non-performing projects to performing projects. This principle has been agreed to by

the Provincial Department of Human Settlements which has since undertaken to

commit funding provided the projects are in line with the milestones of this

Department. During consideration of the schedule of projects attached herein as

Annexure A differentiation was given between registration beneficiaries and

allocation beneficiaries. In terms of the former approach, it was advised that the

Municipality was compelled to construct houses for specific individuals as

per the registration.



On the issue of the appointment of service providers for alternative technologies

houses the meeting was reminded that a report in this regard had already been

approved by the Executive Committee at its meeting held on 2015-06-09, therefore

the supply chain management process is underway.

With regard to the position of eThekwini on densification, confirmation was given

that this matter was being looked into within a context of specific areas identified for

this purpose. A report in this regard was still to be submitted for consideration by the

Executive Committee. It was then recommended that a benchmarking exercise

should be undertaken in China on densification for the City to move forward in this

respect based on an informed premise.

Reference having been made to the schedule of projects, the Head: Human

Settlements was requested to check contractual issues surrounding the Etafuleni

project to make necessary interventions to avoid delays in this project. Meanwhile,

the Head: Human Settlements gave feedback on the decision taken at Ministerial and

MEC (MINMEC) level regarding the Rectification Policy for pre 1994 housing

stock. In terms of this decision, pre 1994 housing stock were not declared as

rectification hence funding for this purpose would no longer be allocated. She

confirmed that eThekwini was pursuing this matter and, as such, a motivation was

being compiled for submission to the Director-General of Human Settlements in an

attempt to obtain funding for this purpose.

With regard to revised budget for human settlements projects,


7.1 That in terms of the Municipal Finance Management Act Council approves projects

listed in the schedule attached herein as Annexure A and revised budget in the

amount of R262.025 million in the 2014/15 financial year to ensure implementation

of these projects.

7.2 That Council approves bridge finance of the proposed revised budget as indicated in

Annexure A attached herein.

ADOPTED.

8. REQUEST FOR APPROVAL TO UTILISE UNSPENT PROJECT BUDGETED

FUNDS FOR THE PROCUREMENT OF A MICROSOFT ENTERPRISE

MANAGEMENT (EA) FOR A PERIOD OF THREE YEARS (10/2/2)

(Page 83)


That authority be granted for the Chief Information Officer to use unspent funds in

the 2014/15 financial year in the amount of R19 450 000.00 (Nineteen Million Four

Hundred and Fifty Thousand Rand) and the amount of R10 600 000.00 (Ten Million

Six and Hundred Thousand Rand) in the 2015/16 and 2016/17 financial years

respectively to purchase a Microsoft Enterprise Licencing Agreement for a three-

year period at a total cost of R30 573 619.10 (Thirty Million Five Hundred and

Seventy Three Thousand Six Hundred and Nineteen Rand Ten Cents)



Votes:

O1055.74185.9001; R 750 000.00; Provided 2014/15

O1082.74185.9001; R 14 200.00; Provided 2014/15

01018.74185.9001; R 4 500.00; Provided 2014/15

1.74153.12103; R 4 500.00; Provided 2015/16

1.74153.12103; R 6 100 00.00; Provided 2016/17

TOTAL R30 573 619.00

ADOPTED.

9. REQUEST FOR AUTHORITY TO LAUNCH THE ESSENCE FESTIVAL

DURING THE DURBAN BUSINESS FAIR 2015 AND TO HOST THE

FESTIVAL IN 2016/17 AND 2017/18 (13/2/1/1/1)

(Page 86)

It was recalled that the hosting of Essence Festival by the City of eThekwini was

previously approved by Council in principle as part of partnership between the City

and the City of Orleans. Preparations were now commencing and it is intended to

launch the festival during the 2015 Durban Business Fair with the actual festival to

take place in September 2016.

Essence Festival was declared a signature event for the City of eThekwini and that

funding in this regard would be obtained as well from the National Government

level. It was confirmed that additional funding was to be sourced through

sponsorship and from the other spheres of Government, hence, the contribution by

the City would be subsequently reduced.

With this event focusing on women empowerment it was advised that the intention

was to involve women from the procurement phase till the actual implementation of

the event. A multi-disciplinary team was to be established to drive the event and

progress report was to be submitted for information purposes and decisions where

required. The event was to be hosted for a period of 3 years, with 2016 being the

first year.

It having been confirmed that the event would result into huge economic spin offs

for the City,


9.1 That authority be granted for the City Manager to negotiate and enter into a 3-year

contract with Time Inc. International/Essence, owners of Essence Festival and

industry-leading collection of media brands internationally, for the hosting of

Essence Festival by the City of eThekwini during this period.

9.2 That Council approves license fee of R5 million to utilize Time Inc. and Essence

platform in 2015/16; R6 million and R7 million license fees for 2016/17 and 2017/18

respectively.

9.3 That subject to the adoption of .1 and .2 above an estimated amount of:-

9.3.1 R1 314 873.00 (One Million Three Hundred and Fourteen Thousand Eight Hundred

and Seventy Three Rand), excl. VAT, be provided in the 2015/16 financial year to

launch the Essence Festival.



9.3.2 R6 815 575.00 (Six Million Eight Hundred and Fifteen Thousand Five Hundred and

Seventy Five Rand), excl. VAT, be approved in the 2016/17 financial year for

logistics, travel and accommodation of speakers and artists and their booking fees,

venue hire, marketing and ground transport.

9.3.3 R8 050 000.00 (Eight Million and Fifty Thousand Rand), excl. VAT, be approved in

the 2017/18 financial year for logistics, travel and accommodation of speakers and

artists and their booking fees, venue hire, marketing and ground transport.

9.4 That authority be granted for two officials to attend and participate in the New

Orleans Essence Festival from 02 to 05 July 2015 in order to learn and acquire

experience to implement a similar event within the City as per contractual

obligations.

9.5 That the Head: Business Support, Tourism and Markets facilitate destination

marketing and enterprise development through Essence platforms.

9.6 That the Head: Business Support, Tourism and Markets start negotiations with the

National Department of Arts and Culture; Provincial Department of Arts, Culture,

Recreation and Sports; and Provincial Department of Economic Development,

Tourism and Environmental Affairs as well as the private sector to get their financial

support.

9.7 That subject to the adoption of .1 to .6 above, the Head: Business Support, Tourism

and Markets Unit keep the City leadership informed of progress in preparation for

the Essence Festival.

Vote No.: 10345.10565 R5 000 000.00 (excl VAT) Provided 2015/16

Vote No.: 10345.10566 R1 314 873.00 (excl VAT) Provided 2015/16

Vote No.: 10345.10565 R12 815 575.00 (excl VAT) To be Provided in 2016/17

Vote No.: 10345.10565 R15 050 000.00 (excl VAT) To be Provided in 2017/18

ADOPTED.

10. REPORT ON ANTICIPATED 2014/15 HUMAN SETTLEMENTS

EXPENDITURE: INKANYEZI HOUSING DEVELOPMENT PROJECT

(22/7/1/1/3)

(Page 96)

Recommendations AMENDED in 10.1 and 10.2 above by the deletion of the

figure “234” and by the substitution therefor of the figure “324”.


10.1 That funding in the amount of R9 116 305.37 (Nine Million One Hundred and

Sixteen Thousand Three Hundred ad Five Rand and Thirty Seven Cents) be

approved in the 2014/15 financial year to proceed with completion of 324 houses

under Inkanyezi Housing Development that was initially not included in the 2014/15

Municipal budget since it has been blocked due to housing allocation challenges and

invasion of houses, which challenges have since been addressed with the intervention

of the Stakeholder’s Forum subsequently established to handle challenges

surrounding the project.



10.2 That subject to approval of .1 above, it be noted that the Supply Chain Management

process will commence to appoint contractors to complete 324 houses, it being

recorded that the KZN Department of Human Settlements will release funding of this

project upon its completion and submission of reconciliation on claims.

10.3 That the allocation schedule compiled and endorsed by the Inkanyezi Housing

Development Stakeholders’ Form to be used by the Allocations Section to allocate

houses to eligible beneficiaries, be adopted as contained in the report by the

City Manager dated 2015-04-01.

ADOPTED.

11. NOTING OF RULE OF ORDER 28: CIVIC FUNERAL FOR LATE

COUNCILLOR NG COTOZA

(Laid on Table)

It was unanimously agreed that the late Councillor Cotoza made a significant

contribution in the South African struggle, hence, she deserved to be accorded civic

funeral by the eThekwini Municipality. It was acknowledged though that not all

Councillors would be eligible to be accorded civic funeral since this was being

determined by the nature and extent of contribution made by a particular Councillor.

In view thereof it was considered necessary to clearly quantify contribution by

Councillors that would warrant civic funeral. Accordingly, the Deputy City Manager:

Community and Emergency Services was requested to submit to the Executive

Committee the existing Civic Funeral Policy to discuss these issues within the

context of the policy guidelines.


11.1 That, in response to the request made by the Speaker of the eThekwini Municipal

Council, Councillor Logie Naidoo, and in line with the requirements of the Civic

Funeral Policy, the approval given by His Worship the Mayor, Councillor James

Nxumalo, in terms of Rule of Order 28, to accord civic funeral for the late eThekwini

Municipal Councillor NG Cotoza who played a significant role in the South African

struggle, be noted.

11.1.1 That it be noted that budget provision up to the amount of R200 000.00

(Two Hundred Thousand Rand) has been made available to cover the costs of the

civic funeral scheduled to take place on Sunday, 2015-06-14 with the allocated funds

to be used to pay for decor and sound system for the memorial service on Friday,

2015-06-12; waiving of payment of City Hall for both the memorial service and the

funeral; catering for 100 VIPs since she was the national leader; catering for 1000

people to attend the funeral; hiring of buses; and any other logistical-related

expenses.

11.1.2 That, for information purposes, feedback report be provided to the Executive

Committee outlining the actual expenditure incurred for the provision of civic funeral

for the late Councillor Cotoza.

(Vote 103880.06620; R200 000.00)

NOTED.

JS NXUMALO

CHAIRPERSON



REPORT OF THE MUNICIPAL PUBLIC ACCOUNTS COMMITTEE

1. NON-COMPLIANCE WITH LAWS AND REGULATIONS

INTRODUCTION

The Auditor General undertook an audit of procurement and contract management

within the Municipality for the 2013/2014 financial year. The audit included an

assessment of procurement processes, contract management and the related controls

in place.

Regulation 44

The Auditor General found that, interalia; awards had been made to providers who

are persons in the service of the municipality or other state institutions which is

contrary to Municipal Supply Chain Management Regulation 44.

Regulation 46(2)(e)

Municipal Supply Chain Management Regulation 46(2)(e) requires an official or

other role player involved in the implementation of the supply chain management

policy to declare to the Accounting Officer details of any private or business interest

which that person, or any close family member, partner or associate, may have in any

proposed procurement or disposal process of, or in any award of a contract by, the

municipality.

Municipal Systems Act: Schedule 2: Paragraph 4(2)(c)

Paragraph 4(2)(c) of schedule 2 of the Municipal Systems Act (Act 32 of 2000)

states that except with the prior consent of the council of a municipality, a staff

member of the municipality may not be engaged in any business, trade or profession

other than the work of the municipality.

FINDINGS

Our analysis of Regulation 44 contraventions over two financial years revealed the

following:-

Finding 2013/14 Financial Period 2012/13 Financial Period

No No of repeat

findings

Amount No No of repeat

findings

Amount

Councillors 0 0 R 0.00 0 0 R0.00

Municipal Employees 7 2 R399,000 20 10 R2,6 million

In service of other

state entities

84 7 R33,5 million 72 24 R8,1million

Whilst we have noted a decrease in the number and value of transactions with

employees employed by the municipality and other state institutions from the prior

year, we are of the view that management should continue to be proactive and

implement monitoring controls to identify conflict of interest prior to awards

being made.



Our analysis of Regulation 46(2)(e) contraventions over two financial years revealed

the following:-

Finding 2013/14 Financial Period 2012/13 Financial Period

No No of repeat

findings

Amount No No of repeat

findings

Amount

Awards to close

family members

12 6 R1.4 million 13 - R3.1million

With regard to paragraph 4(2)(c) of schedule 2 of the Municipal Systems Act:-

The Auditor General found that in eighty six instances amounting to R37 622 062

there was no evidence that employees declared their interest and obtained the prior

consent from council to engage in business other than the work of the municipality.

The transgressions in relation to Councillors and Officials were referred to the

Speaker and City Manager, respectively, for action.

KEY INTERNAL CONTROL PROCEDURES IMPLEMENTED TO IMPROVE

COMPLIANCE WITH SCM REGULATIONS

We have noted that a number of key internal controls have been implemented to

improve compliance with Supply Chain Management Regulations; these being:-

● Establishment of a Conflict of Interest Task Team;

● Standardising procedures for the suspension and blacklisting of entities on the

supplier database (FPLite) and payment systems (JDE and ELIPSE);

● Blacklisting of entities with conflicts of interest;

● Declaration of interest by municipal staff:

● Strict monitoring of completion of MBD4 on tender documents; and

● Online verification of the conflict of interest system.

In addition, we have noted that management is in the process of implementing the

following new initiatives or control measures:-

Publication of all suspended and blacklisted entities on the Intranet

A decision was taken by both the Municipality’s Blacklisting Committee and

Conflict of Interest Task Team that all suspended and/or blacklisted entities should

be published in the municipality’s intranet. Furthermore, all buyers and all Supply

Chain Management committees should have access to the list of suspended and/or

blacklisted entities. The measures will help to ensure that no work is allocated to

suspended or blacklisted entities in future.

Verification of awards against PERSAL Database

The municipality’s officials have managed to persuade the National Treasury’s

Systems team to assist the municipality by verifying if any of the directors of the

entities who are active on JDE payment system are employed by any organ of the

state. The first report was sent on Monday, 18th May 2015.



In addition at Chief Financial Officers Forum level for non-delegated municipalities,

a Task Team has been formed in order to facilitate a standard process for verification

of details of directors against the PERSAL database.

RECOMMENDATION

Having duly deliberated on this matter


That the measures being undertaken by the Municipality to prevent contraventions of

Supply Chain Management Regulation 44 and 46 (2)(e) as well as Paragraph 4(2)(c)

of schedule 2 of the Municipal Systems Act (Act 32 of 2000) be supported.

ADOPTED.

2. THE CITY MANAGER’S FAILURE TO SUBMIT WRITTEN REPORTS TO THE

MUNICIPAL PUBLIC ACCOUNTS COMMITTEE

The City Manager has on numerous occasions been requested and has undertaken to

submit written reports to us to enable us to finalise a number of matters which have

been long outstanding. To date the City Manager has failed to honour such

undertakings.

It is our view that without the cooperation and commitment of the City Manager we

will be unable to achieve our mandate and ensure the achievement of the

Municipality’s goal of a clean audit outcome.

Accordingly,


That His Worship the Mayor, Councillor James Nxumalo, be requested to take the

necessary action to ensure that the City Manager provides written reports as

requested by the Municipal Public Accounts Committee to enable it to effectively

undertake its oversight mandate.

[At the request of the Chairperson of the Municipal Public Accounts Committee

(MPAC) the above recommendation of that Committee was WITHDRAWN on

the basis that the City Manager had submitted the requisite report.]

SA KAUNDA

CHAIRPERSON



REPORT OF THE ETHICS COMMITTEE (Meeting held on 2015-06-17)

PRESENT : Councillors WL Mapena (Chairperson), TJ Gumede, S Hoosen, MQ Magwaza

and VOO Qulo.

ABSENT : Councillors NL Graham (on leave - Indisposed), LM Mhlongo-Ntaka (on leave -

Municipal Business), DF Mncwabe (on leave - Indisposed) and PS Sishange (on

leave - Indisposed).

1. ETHICS COMMITTEE WORKPLAN : 2015/2016 (3/4/R)

(Page 7 : Item 11)

Having duly considered the 2015/2016 Ethics Committee Workplan (Annexure A),


That the 2015/2016 Ethics Committee Workplan, attached hereto as (Annexure A),

be approved.

ADOPTED.

WL MAPENA

CHAIRPERSON



ETHICS COMMITTEE WORK PLAN : 2015/2016 (Annexure A)

Deliverable Statutory

References

Purpose July

2015

Aug

2015

Sept

2015

Oct

2015

Nov

2015

Dec

2015

Jan

2016

Feb

2016

Mar

2016

April

2016

May

2016

June

2016

Municipal Systems Act (MSA)

1 General Conduct of Councillors:-

▪ Honesty

▪ Good faith

▪ Transparency

▪ Creditibility and Integrity of the

Municipality

MSA Sch1(2) Good Governance

Councils ethics are managed effectively

Ethical Leadership

Compliance with applicable laws

X X X X X X X X X X X X

2 Attendance at Meetings:-

● Compulsory attendance of Council

meetings

● Compulsory attendance of Committee

meetings

MSA Sch1(3) Accountability & Transparency

Oversight role

X X X X

3 Disclosure of Interests :-

● Compliance with regulations

MSA Sch1(5)(1)-(3) Clean governance

Avoid conflict of interest

Compliance with laws

X X X X X

4 Personal Gain:-

● Prohibit undue gain

MSA Sch1(6) (1) & (4) Prohibit conflict of interest

Ensure separation of duties.


5 Declaration of Interests:-

● Comply with 60 days req.

▪ Comply with annual req.

MSA Sch1(7)(1)-(4) Encourage Transparency

Separation of powers

X X




References

Purpose July

2015

Aug

2015

Sept

2015

Oct

2015

Nov

2015

Dec

2015

Jan

2016

Feb

2016

Mar

2016

April

2016

May

2016

June

2016

6 Rewards, Gifts and Favours:-

● Prohibit undue influence & conflict,

bribery

MSA Sch1(9) Duty to act in good faith, degree of care &

diligence

Responsible Citizen


7 Disclosures concerning Councillors:-

● In interrogating the annual financial

statements, ensure that the necessary

disclosures were made in the financial

statements, including:-

Arrears owed by individual

Councillors by the Municipality for

more than 90 days

• Auditor-General’s Report

MFMA s124 Enhance accountability & responsibility

Monitor effectiveness of internal controls

Enforce duty to act in good faith

X X X X

8 Unauthorised Disclosure of Information:-

● Prohibit disclosure of confidential info

without permission or outside

acceptable norms

MSA Sch1(10)(1)-(3) Confidentiality

Enforce duty to exercise required degree of

care & diligence in best interest of the

council


9 Intervention in Administration:-

● Prohibit interference with the duties of

the Administration

● Distinguish duty of oversight &

interference

MSA Sch1(11) Ensure compliance with applicable laws

Ensure separation of admin & gov

X X X

10 Council Property :-

● Prohibit the unauthorised usage of

Council property.

▪ Property of Municipal Entities

MSA Sch1(12) Prohibit of abuse of Council Property

Ensure compliance with applicable laws

X X X




References

Purpose July

2015

Aug

2015

Sept

2015

Oct

2015

Nov

2015

Dec

2015

Jan

2016

Feb

2016

Mar

2016

April

2016

May

2016

June

2016

11 Councillor in Arrears:-

● Ensure that Councillors accounts for

Municipal services are settled on time

MSA Sch1(12A) Minimize risk of negative reports

Encourage culture of responsibility &

leadership by example.

X X X X

12 Prohibition on Awards to persons in the

service of the State:-

Prohibit Councillors trading with the

Council

MSCMR 44 Promote Clean governance

Prevention of conflict of interest


X X X X

13 Awards to close family members of

persons in the service of the state

MSCMR 45 Promote Clean governance



X X X X

14 Prohibition of Councillors from voting in

favour or agreeing to a resolution which

conflicts with any Local Government

Legislation.

MSA Sch 1 (2A) To avoid conflict with Local Government

Legislation.


15 Prohibition of full time Councillors from

engaging in any other paid work without

the consent of the Council.

MSA Sch 1 (8) Enhance accountability & responsibility


X X X X

16 Attendance to Seminars, Conferences &

Training

Remuneration of Public

Office Bearers Act, 1998

Government

Notice 38886,

Section 16(a):

Capacity Building

To capacitate Members by applying sound

corporate governance, legal compliance and

Ethics Management at an operational level.

To develop new skills of managing Ethics in

an Organisation.

To evaluate the relevance of current Ethics

Programme.

To strengthen the Organisation, to inculcate

values and principles in building better

X X X X




References

Purpose July

2015

Aug

2015

Sept

2015

Oct

2015

Nov

2015

Dec

2015

Jan

2016

Feb

2016

Mar

2016

April

2016

May

2016

June

2016

Ethical Organisation



REPORT OF COMMITTEE DECISIONS

Decisions of Committees reflected below have been reported to Council by way of circulating

minutes of such Committees to each Member of the Council:-

1. COMMUNITY AND EMERGENCY SERVICES COMMITTEE

Meetings held on : 2015-05-18

: 2015-06-04

2. ECONOMIC DEVELOPMENT AND PLANNING COMMITTEE

Meeting held on : 2015-05-07

3. ETHEKWINI MUNICIPALITY INFORMAL ECONOMY FORM (EMIEF)


4. FINANCE AND PROCUREMENT COMMITTEE


: 2015-05-21

5. HUMAN RESOURCES DEVELOPMENT SUB-COMMITTEE: TREASURY AND

OFFICE OF THE CITY MANAGER


6. LOCAL LABOUR FORUM: ECONOMIC DEVELOPMENT AND PLANNING


7. LOCAL LABOUR FORUM: WATER AND SANITATION


8. TOWN PLANNING SUB-COMMITTEE


: 2015-05-28

NOTED.



ITEMS FOR NOTING

The items for noting, as reflected on pages 59 to 65 of the Agenda were NOTED.

__________________

The meeting terminated at 16:50.

CONFIRMED AT THE MEETING OF THE ETHEKWINI COUNCIL ON 2015-07-30

SPEAKER

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