- 1 -(eThekwini Municipality
Council Decisions - 2015-12-03)
KRR(2015-12-03)(SAM)[CHALL-135313]2015-12-07
COUNCIL DECISION CIRCULAR : MEETING HELD ON 2015-12-03
TO ALL DEPUTY CITY MANAGERS AND HEADS:
Attached please find decisions adopted by the Council at its meeting held on 2015-12-03.
Deputy City Managers and Heads are kindly requested to facilitate implementation of the decisions impacting their Clusters and Units within the applicable timeframes.
Kindly note that the word "ADOPTED" marked in bold at the end of the recommendation confirms that the item has been approved by Council and is ready for implementation. Other relevant status will be reflected at the end of the recommendation to indicate the position taken by Council on a particular item.
Should further information be required on any item on the Council agenda, kindly contact
Vishnu Ramsunder on Telephone No.(031) 311-2371 or through email.
1.FIRST REPORT OF THE EXECUTIVE COMMITTEE : MEETING HELD ON TUESDAY, 2015-11-17
1.1REQUEST FOR APPROVAL FOR THE MAYOR, SENIOR POLITICAL OFFICE BEARERS AND OFFICIALS OF THE ETHEKWINI MUNICIPALITY TO ATTEND THE 7TH AFRICITIES SUMMIT AND CITEXPO 2015 IN JOHANNESBURG, SOUTH AFRICA, 29 NOVEMBER - 03DECEMBER 2015 (14/1)
(Page 63)
With the Executive Committee Members HU De Boer and ZM Mncwango dissenting on the basis of the high rate of expenditure with regard to the attendance at the abovementioned Summit,
COMMITTEE RECOMMENDS:
That authority be granted for a delegation of the eThekwini Municipality, comprising Councillors and Officials and led by His Worship the Mayor, Councillor James Nxumalo, to attend the 7thAfricities Summit and Citexpo from 2015-11-29 to 20151203 in Johannesburg, South Africa, it being recorded that the Speaker and the City Manager will respectively nominate Councillors and relevant Officials to attend such Summit and determine the budget thereof.
ADOPTED, by a majority vote.
1.2GAZETTING OF THE DRAFT DURBAN BAY ESTUARINE MANAGEMENT PLAN FOR PUBLIC COMMENTS (32/1/4/2)
(Page 165)
COMMITTEE RECOMMENDS:
That the letter dated 2015-09-16, received from Director-General of the Department of Environmental Affairs advising that such Department is in the process of gazetting the Draft Durban Bay Estuarine Management Plan (EMP) for public comments in accordance with the Integrated Coastal Management Act, 2008 (Act No. 24 of 2008) and the National Estuarine Management Protocol as prescribed in the Act as part of its mandate to manage estuaries within the Republic of South Africa in a coordinated and efficient manner, be noted and be referred to all Support Committees for information.
NOTED.
1.3AUDIT COMMITTEE QUARTERLY REPORT AS AT 31 MARCH 2015 AND 30JUNE 2015 (2/10/1/1)
(Page 222)
The Executive Committee received a report comprising findings identified by the Audit Committee during the Third and Fourth Quarters of the 2014/15 financial year. Thereafter, the Committee raised the following salient points:-
(i)The reliability of decisions by the City Integrity and Investigations Unit in relation to the almost erroneous payment to a contractor.
(ii)The issues around the Revenue Management System and lack of accountability in certain Clusters due to the vacant positions for Deputy City Managers having not been filled.
(iii)Issues relating to irregular expenditure and the absence of financial details in reports submitted for noting purposes.
(iv)The need for the Executive Committee to re-address the issue of conflict of interest and reverse its earlier decision in the appointment of the Board Member in question at the Inkosi Albert Luthuli International Convention Centre.
(v)Concerns around DMTP with the possibility of engaging private investors to revitalise the City, the call for high level intervention in the relationship between DMTP and SAAMBR and exploring other options in respect of an incorrect decision to implement IRPTN.
(vi)Investigate the issues that contribute to the huge water loss to the City.
(vii)The need for centralised contract management to effectively manage the finances of the City.
The City Manager acknowledged the comments made by the Committee and confirmed that certain processes were already underway to address some of the findings identified.
Therefore
COMMITTEE RECOMMENDS:
1.3.1That the Audit Committee Report for the Third and Fourth Quarters ending 31March2015 and 30 June 2015, respectively, submitted interms of Section 166 (2) of the Municipal Finance Management Act No. 56 of 2003, to advise Council on the activities of the Audit Committee and the results of its quarterly reviews of the systems of internal control; risk management; financial management; performance and financial reporting; organizational performance management and evaluation; internal audit function and outcomes; fraud and corruption matters brought to the attention of the Committee, be noted.
1.3.2That the City Manager facilitates the process of getting relevant Units to address the findings of the Audit Committee and also take into account the comments made by the Executive Committee as recorded in points (i) to (vii) above and thereafter submit to the Executive Committee a comprehensive report on the Municipality’s interventions to address the following findings identified, for effective monitoring and accountability thereon:-
(a)Revenue Management System (RMS)
(b)IT Governance
(c)Integrated Rapid Public Transport Network (IRPTN)
(d)Housing : Budget Implementation
(e)Water Loss
(f)Performance Management
(g)Irregular Expenditure
(h)Contract Management
(i)Review of AFS
(j)Asset Management
(k)Reliability of Records: Reconciliations of ERP systems interfaces
(l)Durban Marine Theme Park (DMTP) Five (5) Year Strategic Plans
(m)DMTP Annual Financial Statements
(n)Inkosi Albert Luthuli ICC : Governance Review : Conflict of Interest
(o)Appointment of Company Secretary :Inkosi Albert Luthuli ICC
(p)Finalisation of Inkosi Albert Luthuli ICC Shareholders’ Compact
(q)Appointment of New Board Members :Inkosi Albert Luthuli ICC
(r)Inkosi Albert Luthuli ICC : Performance Information
Recommendation 1.3.1 NOTED and Recommendation 1.3.2 ADOPTED.
1.4REPORT OF THE HUMAN SETTLEMENTS AND INFRASTRUCTURE COMMITTEE: MEETING HELD ON 2015-11-03
(Page R1)
1.4.1Request for Authority to Transfer Funds for the Ntuzuma C Trunk Sewer Relay Project: Y8101: Ward 45: WS2015/139 (23/2/1/1):
(Page 22 : Human Settlements and Infrastructure Committee - Agenda 2015-11-03)
COMMITTEE RECOMMENDS:
1.4.1.1That subject to obtaining quotations and tenders where necessary, authority be granted for the implementation of project Y8101, Ntuzuma C Trunk Sewer Relay.
1.4.1.2That for the reasons stated in the report of the Head : Water and Sanitation dated 2015-08-24, authority be granted to the Deputy City Manager : Finance to include in his Adjustments Budget report, the transfer of R1.2 Million from project Y6111 Amanzimtoti Old Main Road Sewer Reticulation to Project Y8101 Ntuzuma C Trunk Sewer Relay.
Cost Centre: 65510; R1 2 Million; (To be met by savings via an Adjustment Budget from project Y6111)
Project No.: Y8101; FC No.: 65/C02
ADOPTED.
1.4.2WS 2015/138: Amagcino Elevated Tank - Supply and Installation of 60 Kilolitre Steel Panel Elevated Tank and Pipelines: Ward 98 (23/1/11/3/1):
(Page 23 : Human Settlements and Infrastructure Committee - Agenda 2015-11-03)
COMMITTEE RECOMMENDS:
1.4.2.1That subject to compliance with Supply Chain Management Regulations, authority be granted for the construction of one 60 kilolitre elevated tank and pipelines at an estimated cost of R8500000.00 (Eight Million Five Hundred Thousand Rand Only) (excluding VAT).
1.4.2.2That the Deputy City Manager: Finance be authorised to include in his Adjustments Budget report the transfer of R6200000.00 (Six Million Two Hundred Thousand Rand Only) from project X7223 – Ensimbini Reservoir and R2300000.00 (TwoMillion Three Hundred Thousand Rand Only) from project X2679 – Blackburn Reservoir to project X4774 – Amagcino Elevated Tank in the 2015/16 financial year.
1.4.2.3That the Head : Real Estate be authorised to acquire any pipeline servitude as well as any other necessary servitudes, wayleaves and encroachments and land by negotiation and/or expropriation as considered necessary.
1.4.2.4That subject to the adoption of .3above, it be noted that the approval of the Bid Adjudication Committee will be sought to deviate from Supply Chain Management Regulations for the Head : Real Estate to negotiate directly with the property owner for acquisition of the property in question using Section 36(1)(a)(ii) of the Supply Management Regulations.
1.4.2.5That in the event of the negotiations being unsuccessful, the Head : Real Estate be authorised to expropriate the affected property.
1.4.2.6That in the event of the 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 Regulations.
1.4.2.7That the existing Jojo tank is in working condition and be returned to the Water Plant Department for reuse.
Cost Centre : 69200;R6 200000.00;(To be met by savings via an Adjustment Budget from project X7223 in 2015/16)
R2 300000.00;(To be met by savings via an Adjustment Budget from project X2679 in 2015/16)
Project No.: X4774; FC No.: 64/C04
ADOPTED.
1.4.3Rehabilitation and Desludging of Maturation Ponds at the Northern Wastewater Treatment Works: WS 2015/099 (23/1/11/2/1/2):
(Page 25 : Human Settlements and Infrastructure Committee - Agenda 2015-11-03)
COMMITTEE RECOMMENDS:
1.4.3.1That subject to obtaining quotations and tenders where necessary, authority be granted for the implementation of Project Y8119: Desludging of maturation ponds at the Northern Wastewater Treatment Works as per details reflected in the report WS.2015/099 of the Head : Water and Sanitation dated 2015-06-05.
1.4.3.2That subject to the adoption of .1 above, and in order to meet additional expenditure in the financial years 2015/16 and 2016/17, the Deputy City Manager : Finance be authorised to include in his Adjustments Budget report, the transfer of R3000000.00 (Three Million Rand Only) in 2015/2016 from project Y7048 and R10000000 (TenMillion Rand Only) in 2016/17 from Project Y6972 (excluding VAT) toY8119.
Project No.: Y8119;R 3 000000.00;(To be met by savings via an Adjustment Budget from project Y7048 in 2015/16)
R10 000000.00;(To be Provided in 2016/17 Capital Budget via a transfer from Y6972)
FC No.: 65/C06
ADOPTED.
1.4.4WS 2015/137: Authority to Construct Water Projects (7/1/2/1):
(Page 27 : Human Settlements and Infrastructure Committee - Agenda 2015-11-03)
COMMITTEE RECOMMENDS:
1.4.4.1That subject to the invitation of tenders or quotations where necessary, the Block Sum Projects listed in the report WS 2015/137 of the Head : Water and Sanitation dated 2015-09-01, be approved.
1.4.4.2That subject to the adoption of .1above, the Head: Finance Expenditure be authorised to include in his Adjustments Budget report the transfer of funds from the Capital Block Sums Projects to individual projects as reflected in the report.
1.4.4.3That subject to the adoption of .1 above, and in order to met excess expenditure and other anticipated work in this financial year, the Head : Finance Expenditure be authorised to include in his Adjustments Budget report the transfer of R27145000.00 (Twenty Seven Million One Hundred and Forty Five Thousand Rand Only) from Watermains Replacement block sum to Relays and Extensions block sum as reflected in the report.
1.4.4.4That subject to the adoption of .1 above, the Head : Real Estate be authorised to negotiate for the acquisition of, or to expropriate if necessary, the servitudes and/or land required for construction of water infrastructure for the projects in question.
Reservoir refurbishments / R4950000.00 / To be met by vote Transfer 2015/16 (Project X5188)Labour Based Construction / R2130000.00 / To be met by vote Transfer 2015/16 (Project X4257)
Pumpstation Upgrades / R1002439.00 / To be met by vote Transfer 2015/16 (Project X4215)
Unicity Water Dispensers / R50000.00 / To be met by vote Transfer 2015/16 (Project X4247)
Relays and Extensions. / R55221800.00 / To be met by vote Transfer 2015/16 (Project X4217)
Replacement of Water Pipes / R2500000.00 / To be met by vote Transfer 2015/16 (Project X4889)
Project No’s.: Various; Cost Centre: 69100 and 69200; FC No. 64/C05
ADOPTED.
1.4.5Reclamation and Re-Use of Treated Wastewater - Way Forward WS 2015/117 (23/2/1/4/1/1):
(Page 31 : Human Settlements and Infrastructure Committee - Agenda 2015-11-03)
The Committee requested that a study tour be undertaken by Councillors and officials to visit the Windhoek Municipality as well as the Westcoast Municipality in Africa with a view to exploring other possible options in as far as re-use of Treated Wastewater is concerned and also to copy best practices which would enable Council to take an informed decision. It was further requested that an international tour which would be identified by the Head: Water and Sanitation be also undertaken. It was advised that the appointment of a consultant to examine the public concerns would be held in abeyance until the study tour had been undertaken which would provide guidance concerning the process to be followed. Further, that the engagement of the consultant was dependent upon the outcome of the study whether to follow the option of assured supply of potable water or the disposal of treated wastewater.
COMMITTEE RECOMMENDS:
1.4.5.1That the report by the Head : Water and Sanitation dated 2015-07-27 relative to the Reclamation and Re-Use of Treated Wastewater, be noted.
1.4.5.2That authority be granted for the Head : Water and Sanitation in consultation with the Chairperson of the Human Settlements and Infrastructure Committee to arrange a study tour to visit Windhoek Municipality, Westcoast Municipality and an International Country with a view to exploring other possible options in as far as the re-use of treated wastewater is concerned.
1.4.5.3That subject to the approval of .2 above, a multi-party delegation of Councillors be formulated to attend the study tour.
Recommendation 1.4.5.1 NOTED and Recommendations 1.4.5.2 and 1.4.5.3 ADOPTED.
1.4.6IRPTN – C3B Corridor – Replacement and Realignment of Trunk Water Main fromJosiah Gumede Road, Pinetown (23/1/11/1/1/2):
(Page 37 : Human Settlements and Infrastructure Committee - Agenda 2015-11-03)
COMMITTEE RECOMMENDS:
1.4.6.1That authority be granted for the urgent replacement and realignment of the 450 diameter trunk water main currently located in Josiah Gumede Road in Central Pinetown to be prioritised due to risks associated with the construction and operation of the Integrated Rapid Public Transport Network C3 Route.
1.4.6.2That, subject to the adoption of .1 above, authority be granted for a shared contribution to the construction costs in the ratio of one third eThekwini Water and Sanitation and two thirds eThekwini Transport Authority.
1.4.6.3That subject to adoption of .2 above, the project will initially be funded by the eThekwini Transport Authority via existing budget provisions with eThekwini Water and Sanitation transferring their contribution from future savings to be identified in their Capital Budgets.
1.4.6.4That subject to adoption of .2 and .3 above, authority be granted to proceed with the project.
P8528.74185.18000R10.5 millionProvided 2015/16
FC No. 50/C003
ADOPTED.
1.4.7Budget Adjustment: Contract No. WS 6145: Electron Road Waste Management Facility: SW 2015/017 (7/1/2/2 & 24/8/2/1/2):
(Page 40 : Human Settlements and Infrastructure Committee - Agenda 2015-11-03)
COMMITTEE RECOMMENDS:
That for the reasons stated in the report WS2015/017, authority be granted to the Deputy City Manager : Finance to include in his Adjustments Budget report, the transfer of R619 693.42 (Six Hundred and Nineteen Thousand Six Hundred and Ninety Three Rand and Forty Two Cents Only) from Project Number WBU 11 to Project Number WEL02 for payment for the release of retention and additional work in respect of Electron Road Waste Management Facility.
Vote: WEL 02R619 693.42(To be provide via an adjustments budget 2015/16 from WBU11)
FC No. 66/C05
ADOPTED.
1.4.8Application to Sell Portion 2 of Erf 648 Stanmore to the KwaZulu-Natal Department of Human Settlements for Displaced Trader Purposes (17/2/1/2/3):
(Page 49 : Human Settlements and Infrastructure Committee - Agenda 2015-11-03)
Following an in-loco inspection of the land in question
COMMITTEE RECOMMENDS:
1.4.8.1That the Municipality declares in terms of Section 14 (6) of the Municipal Finance Management Act (MFMA) 56 of 2003 read together with Regulation 20 of the MFMA Asset Transfer Regulations that of Portion2 of Erf 648 Stanmore in extent 5965 square metres be transferred to the KwaZulu-Natal Department of Human Settlements for the onward sale and transfer to displaced traders U Naicker, A.Naidoo, K Naidoo and P Gounder at a purchase price of R178 950.00 (OneHundred and Seventy Eight Thousand Nine Hundred and Fifty Rand Only) (excluding Value Added Tax).
1.4.8.2That the price has been calculated in terms of existing Displaced Trader Programme i.e.:- R30.00 (Thirty Rand) per square metre.
1.4.8.3That a suitably worded condition in favour of the Municipality be included as a restriction in Title in respect of Portion 2 Erf 648 Stanmore. This condition is to be carried forward in title when transfer takes place from the Department to the displaced traders.
1.4.8.4That the Head: Real Estate be authorized to sign all documents necessary to conclude the various agreements.
ADOPTED.
1.4.9Clermont Town Centre Redevelopment Project: Land Expropriation to Create Link Road BetweenZazi and Krause Roads (17/2/1/1/4):
(Page 61 : Human Settlements and Infrastructure Committee - Agenda 2015-11-03)
Following an in-loco inspection of the land in question
COMMITTEE RECOMMENDS:
1.4.9.1That an offer and payment of 100% of the Municipality’s assessed compensation as reflected below, less any amount owed to the Municipality, be paid to the respective Expropriatees or to the Master of the High Court where applicable, in terms of Section 11(1) of the Expropriation Act No. 63 of 1975:-
Property Description / Property Owner/ Expropriatee / Extent / Market Value (Excl.VAT) / Solatium (Excl.VAT) / 100% Assessed Compensation (Excl. VAT)Proposed Portion [A] of Erf 1077 Clermont / TC Mafoko / 18m² / R 3 000 / R 300 / R 3 300
Proposed Portion [A] of Erf 86 Christianenburg / R Ndelu / 42m² / R 6 000 / R 600 / R 6 600
Erf 84 Christianenburg / Berliner Missiongesells
chaft / 929m² / R100 000 / R10 000 / R110 000
1.4.9.2That an offer and payment of 80% of the Municipality's assessed compensation as reflected below, be paid to the respective Expropriatees or to The Master of the High Court where applicable, in terms of Section 11(1) of the Expropriation Act No. 63of1975:-
Property Description / Property Owner/ Expropriatee / Extent / Market Value (Excl.VAT) / Solatium (Excl.VAT) / 80% Assessed Compensation (Excl. VAT)Erf 1078 Clermont / Estate Late TCNgcece
and
Estate Late SSithole / 502m² / R500 000 / R30 000 / R424 000
Erf 1079 Clermont / MD Khuzwayo and 3 others / 502m² / R450 000 / R27 500 / R382 000
Erf 85 Christianenburg / Estate Late LR and SH Dolphin / 929m² / R490 000 / R29 500 / R415 600
1.4.9.3That subject to adoption of 2. above, the balance of 20% less any outstanding amounts due to the Municipality be paid as soon as the Municipality has be provided with vacant occupation of the respective expropriated properties
Project S1030R1767 000 (Excl. VAT)(To be met via 2014/2015 adjustment budget ex.S1029
FC No.: 18/CA37
ADOPTED.
1.4.10Proposed New eThekwini Municipality: Sewage Disposal By-Law 2015 (1/1/3/1/28):
(Page 114 : Human Settlements and Infrastructure Committee - Agenda 2015-11-03)
COMMITTEE RECOMMENDS:
That the eThekwini Municipality: Sewage Disposal By-law 2015 be approved for final publication in Ezasegagasini Metro and the Provincial Gazette, with the By-law taking effect on the date of publication thereof in the Provincial Gazette.
ADOPTED.
1.4.11Work in Excess of R500000: Electrical Reticulation of Informal Settlement at 30Chiltern Drive (Rainbow Ridge) Reservoir Hills, Ward 23, Drawing Number 2601113 (27/2/3//2)
(Page L5 : Human Settlements and Infrastructure Committee - Agenda 2015-11-03)
COMMITTEE RECOMMENDS:
That authority be granted to Head: Electricity to incur expenditure estimated at R1094 075.00 (One Million and Ninety Four Thousand and Seventy Five Rand Only) through the normal goods and services procurement process to carry out the construction of the medium and low voltage reticulation in order to provide a supply of electricity to approximately 177 customers in Ward 23, at Chiltern Drive (Rainbow Ridge), Reservoir Hills.