Minutes and De… · Web viewKindly 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

MP/SCZ(2020-11-13)(SAM)[CHALL-184623] 2020-11-17

COUNCIL DECISION CIRCULAR : MEETING HELD ON 2020-11-13

TO ALL DEPUTY CITY MANAGERS AND HEADS:

Attached please find decisions adopted by the Council at its meeting held on 2020-11-13.

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 Theresa Ndlovu using any of the following contact details:

Office Landline: 031 311-2101Cellphone: 083 652 3882Email: [email protected]

- 2 - (eThekwini MunicipalityCouncil Decisions - 2020-11-13)

1. FIRST REPORT OF THE EXECUTIVE COMMITTEE: MEETING HELD ON TUESDAY, 2020-10-20

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1. REPORT OF THE COMMUNITY SERVICES COMMITTEE: MEETING HELD 2020-10-15

(Page R3)

1.1 Request for Approval: Outbreak of Rabies in the South Sub District Area (30/2/3/1):(Page 30: Community Services Committee - Agenda 2020-10-15)

The Community Services Committee was informed of the rabies outbreak with the Umlazi and Umbumbulu areas being mostly affected. Four (4) human rabies cases, all children under the age of 10, were reported thus far with the first case reported in July 2020 and the last confirmed case reported in September 2020. All four (4) cases have unfortunately succumbed to the endemic.

Support was requested from Councillors to mobilise communities and raise awareness in as far as rabies prevention and control is concerned; and that adequate police visibility is provided for vaccination teams during the animal vaccination campaigns in the affected areas. The Deputy City Manager: Community and Emergency Services was requested to confirm that the Committee would not bear financial implications that would be incurred in respect of overtime payment for Metro Police Officers.

It was requested that the Committee be provided with the schedule of the rabies vaccination and awareness programmes taking place with Ward information and dates in order for Councillors to ensure the programme is accessed by all communities.

At the Executive Committee Level, it was reiterated that the schedule of vaccination and the awareness programmes had to be circulated in advance to enable Councillors to accordingly disseminate the information to their constituencies.

In this regard;

COMMITTEE RECOMMENDS:

1.1.1 That authority be granted for the Deputy City Manager; Community and Emergency Services to deploy Metro Police to accompany the vaccination teams during the rabies vaccination campaigns within the eThekwini Municipal District to prevent vehicle hijacking as experienced in the past.

1.1.2 That authority be granted to the Head: Health to ensure the following:

(a) Active involvement and participation from Civil Society;(b) Ongoing rabies education to raise community awareness; and(c) Upscaling the animal vaccination campaign in the Metro area and ensure

that anti-rabies vaccines are available in all health care facilities.ADOPTED.


1.2 Request for Approval: Update on Food Security Programme and Planned Activities for Agro - Ecology Unit for 2020/2021 Financial Year (20/1/7/5): (Page 35: Community Services Committee - Agenda 2020-10-15)

The Community Services Committee was updated on the Food Security programmes and requested that the Head: Agro-Ecology provides a detailed presentation at the next meeting. The presentation should state figures regarding food security programmes being provided for the youth, women, people with disabilities and learners category.

Thereafter;


1.2.1 That the update provided by the Head: Agro-Ecology in respect of the Food Security Programme being implemented under the Agro-Ecology Unit, be noted.

1.2.2 That authority be granted to the Head: Agro-Ecology to implement the following programmes during the 2020/2021 financial year, it being noted that no financial implications were to be incurred:

Livestock and poultry farming; Smart farming; Sustainable Agriculture; Environmental protection; Public health improvement Economic and social equity; and One Home One Garden Project;ADOPTED.

1.3 Request for Approval: Revised Capital Budget for Agro-Ecology Unit for 2020/2021 Financial Year (7/1/2/1):(Page 50: Community Services Committee - Agenda 2020-10-15)

The list of various Gardens and Agriculture Hubs proposed by the Agro-Ecology Unit in the report, was noted. The Community Services Committee was informed that the Unit was looking into making Hubs become food centres for the production, sorting and accessing of produce and food. In addition, it was stated that the converting of gardens from subsistence to commercial farming should be explored by the Unit.

Accordingly;


1.3.1 That authority be granted to the Head: Agro-Ecology to coordinate and implement the Gardens Projects during the 2020/2021 financial year in the amount of R6 820 000.00 (Six Million Eight Hundred and Twenty Thousand Rand).

1.3.2 That subject to the approval of .1 above, authority be granted to the Head: Agro-Ecology to proceed with the completion of the project commenced at the


Marianridge Agro-Ecology Hub with the transferring of R 1 000 000.00 (One Million Rand) from the Inchanga Agro-Ecology Hub to the Marianridge Agro-Ecology Hub.

1.3.3 That subject to the approval of .1 and .2 above, authority be granted to the Head: Agro-Ecology to proceed with the completion of the project commenced at the Northdene Agro-Ecology Hub Fencing with funds available from the Capital Gardens Budget in the amount of R650 000.00 (Six Hundred and Fifty Thousand Rand).

1.3.4 That subject to the approval of .1, .2 and .3 above, authority be granted to the Head: Agro-Ecology in incur expenditure in line with the schedule of programmes and ensure that continuous feedback is provided to the Committee for oversight.

1.3.5 That subject to the approval of .1-.4 above, authority be granted to the Head: Agro-Ecology to report the revised budget transfers in the amounts of R6 820 000.00 (Six Million Eight Hundred and Twenty Thousand Rand) and R2 450 000.00 (Two Million Four Hundred and Fifty Thousand Rand) respectively, on the Adjustment Budget for the 2020/2021 financial year.ADOPTED.

1.4 Request for Authority to Conclude a Memorandum of Understanding with the Verulam Historical Society with Regards TCO the Verulam Heritage Centre (35/2/R):(Page L96: Community Services Committee - Agenda 2020-10-15)

It was noted that Council had took a decision on 2018-08-30 to transfer the Verulam Heritage Centre from the Economic Development Unit to the Parks, Recreation and Culture Unit.

On this basis;


1.4.1 That authority be granted to the Head: Parks, Recreation and Culture to enter into a Memorandum of Understanding with the Verulam Historical Society for the general management of the Verulam Heritage Centre which is Municipal property.

1.4.2 That authority be granted to the Head: Parks, Recreation and Culture to engage with the Verulam Historical Society, it being recorded that the Verulam Historical Society plays an important link between the eThekwini Municipality and the community of Verulam.ADOPTED.

1.5 Request for Project Authority to Install the 1860 Indentured Labourers’ Commemorative Wall in Verulam (35/2/R): (Page L97: Community Services Committee - Agenda 2020-10-15)

At the Executive Committee Level, His Worship the Mayor clarified that the Municipality had successfully facilitated this project and that delays were being experienced on the side of the development of specification.

Thereafter with the Committee being in agreement,



That project authority be granted to the Head: Parks, Recreation and Culture, in liaison with the 1860 Indentured Indian Labourers Foundation of Verulam, to identify a suitable portion of land to install and erect the 1860 Indentured Indian Labourers Commemorative Wall in Verulam as requested by the Foundation.ADOPTED.

1.6 Request for Approval to Implement Interactive Public and Cultural Museum Programmes in Line with the UNESCO City of Literature Award (2020/2021 Financial Year):(Page L98: Community Services Committee - Agenda 2020-10-15)

The schedule of interactive, cultural and educational programmes to be implemented through the Local History Museums was noted. Due to the COVID-19 pandemic, most of the programmes would be hosted virtually and it would be ensured that all Wards have access to the programmes. Committee requested timely invitations to Committee members and implementation dates of all programmes.

At the Support Committee, the Democratic Alliance abstained on the matter pending submission of report with breakdown of all programmes and details on Ward locations

At the Executive Committee, the Democratic Alliance acknowledged the significance of the UNESCO Award and the opportunity associated therewith to put the City on the roadmap. However, concerns were expressed that important details pertaining to the programme had not been submitted as well as the financial breakdown thereof.

In providing a response, the Deputy City Manager: Community and Emergency Services advised that the initial report presented at the Support Committee had only lacked details in terms of the list for the Wards allocation. He then stated that the programmes will be implemented both in a physical format and online as the Country had moved to Alert level one (01).

Thereafter, His Worship, the Mayor emphasised that Parks, Recreation & Culture Unit had to be vigilant in terms of the budget allocated for awareness campaigns as more funds had to be assigned to programmes and/or projects that have significant impact on the ground in terms of service delivery

Consequently, with the three (03) Executive Committee Members of the DA abstaining and with four (04) Executive Committee Members of the ANC and one (01) Executive Committee Member of the IFP being in support,


1.6.1 That authority be granted to the Head: Parks, Recreation and Culture to coordinate and implement various interactive public and cultural programmes through the Local History Museums during the 2020/2021 financial year.

1.6.2 That subject to the approval of .1 above, authority be granted to the Head: Parks, Recreation and Culture to incur expenditure in the amount of R2 980 000.00 (Two Million Nine Hundred and Eighty Thousand Rand) to coordinate and implement the programmes in various cultural spaces.


1.6.3 That subject to the approval of .1 and .2 above, all procurement of goods and services be undertaken strictly in accordance with the Supply Chain Management Policy and the Municipal Finance Management Act, 2003, Circular 82, regarding Cost Containment Measures.

1.6.4 That subject to the approval of .1, .2 and .3 above, a close-out report be submitted after the implementation of all programmes facilitated through the Local History Museums during the 2020/2021 financial year.

Financial Implications:Vote No.: VARIOUS.VARIOUS.12120.0000.VARIOUS.W028 15522.VARIOUS.75150.0000.VARIOUS.W028FC No.: 34/387

ADOPTED, by the majority vote.

2. REVISION OF AN APPROVED ANNUAL BUDGET FOR 2020/2021: COVID-19 SPECIAL RATES RELIEF (7/1/2/1 & 7/2/2)

(Page 14)


2.1 That Council approves the granting of a COVID-19 Special Rates Relief from 01 July 2020 and ending on 30 June 2021, to property owners catergorised as Bed & Breakfast Establishment and Guesthouses that have and continue to suffer financial losses in the tourism industry.

2.2 That the rates relief for Bed & Breakfast Establishment and Guesthouses be set at an additional rebate of 14% and 39%, respectively and totaling to 64% for each property category.

2.3 That subject to the adoption of .1 above, the Council grant a relief to all qualifying applicants who submitted their applications after 30 June 2020.

2.4 That the rates rebate relief application be made in the prescribed application form to the Chief Financial Officer of his delegated representatives on or before 30 June 2020.

2.5 That, if granted, the qualifying conditions be as follows:

2.5.1 In the case of multiple use properties, rates relief will apply only to the applicable rates categories allocated to the qualifying uses in question, as reflected in the valuation roll.

2.5.2 Properties registered in the name of or owned by the organ of the State, either partially or wholly, will not qualify for the rates relief.

2.5.3 A property owner must be able to demonstrate by means of supporting documents to the satisfactory of the Chief Financial Officer or his delegate in terms of the approved System of Delegations that it has suffered and continues to suffer financial loss of more than 60% revenue.


2.6 That subject to the adoption of .1 to .2 above, the rates relief be effective retrospectively from 01 July 2020 until 30 June 2021.

2.7 That subject to the adoption of .1 to .5 above, revenue foregone for the period between 01 July 2020 and 30 June 2021, be included in the 2020/2021 Annual Budget Adjustment.ADOPTED.


3. RECISSION OF COUNCIL RESOLUTION DATED 12/12/2019 AND ADOPTION OF RESOLUTION RE: LEASE OF ERVEN 12380 AND 11727 DURBAN TO DURBAN ICC SOC LTD

(Page 18)

With the Democratic Alliance not being satisfied with the approach being implemented and therefore suggesting an option of entering into an addendum or drawing up a new contract, the Head Legal confirmed that the approach of rescinding Council resolution was also not regarded as unlawful.

Further, the Deputy City Manager: Finance advised that the lease agreement had expired in June 2019. However, a decision was taken in December 2019 which had left a gap of six (06) months without an agreement in place. It being noted that the new Council resolution will be aligned with the agreement.

Thereafter, with the three (03) Executive Committee Members of the DA abstaining and with four (04) Executive Committee Members of the ANC and one (01) Executive Committee Member of the IFP being in support,


3.1 That the following resolution relative to Lease of Erf 12380 Durban, as adopted by Council on 12 December 2019, be rescinded:

“17.1 That in terms of Section 110 (2) of the Local Government: Municipal Finance Management Act 56 of 2003, Council approves the lease of the properties described as Erf 12380 in extent 5,7856m2 and Erf 11727 Durban in extent 4,6577m2 for a period of (twenty) 20 years to the Durban ICC SOC LTD with company Registration details 1992/008887/30.

17.2 That the rental for the lease period be assessed at R1-50

17.3 That subject to the adoption of .1 and .2 above, the Head Real Estate be authorized to sign all documents necessary to conclude the agreement.”

3.2 That in terms of Section 110 (2) of the Local Government: Municipal Finance Management Act 56 of 2003, Council approves the lease of the properties described as Erf 12380 in extent 5,7856m2 and Erf 11727 Durban in extent 4,6577m2 for a period of (twenty) 20 years to the Durban ICC SOC LTD with company Registration details 1992/008887/30.

3.3 That the rental for the lease period be assessed at R1-50 inclusive of VAT.

3.4 That Council ratify the effective date to be 27 June 2019.

3.5 That the building and improvements remain with the Durban ICC as a continuation of the former lease.

3.6 That subject to the adoption of .1 to .5 above, the Head Real Estate be authorized to sign all documents necessary to conclude the agreement.ADOPTED, by the majority vote.


4. FINAL INTEGRATED DEVELOPMENT PROCESS PLAN – 2021/2022 (2/1/6/1)

(Page 26)


4.1 That the final 2021/22 Integrated Development Plan (IDP) Process Plan as contained in the report of the City Manager dated 2020-09-18 developed in line with the requirements of the Local Government: Municipal Systems Act, No. 32 of 2000, to guide the planning, drafting, adoption and the review of the Integrated Development Plan of the eThekwini Municipality, be adopted, it being recorded that the Process Plan outlines the following:

(i) Defines steps for the process of review(ii) Outlines roles and responsibilities(iii) Outlines public participation process(iv) Provides cost estimate for facilitating the review process(v) Incorporates new processes such as the City Planning Commission and

Durban Resilient Strategy as strategic inputs into the development of the 5-year IDP.

4.2 That upon obtaining Council approval, a copy of the Process Plan be submitted to the Honourable MEC for Co-operative Governance and Traditional Affairs to ensure that the Municipality meets statutory obligations in this regard.ADOPTED.

5. APPROVAL OF CUSTOMER RELATIONS MANAGEMENT POLICY & THE CONTACT CENTRE PROJECT PROGRESS APPRAISAL

(Page 65)

The Democratic Alliance expressed concern making the point that the Municipal interaction with its customer was poor, particularly at the water and electricity Contact Centres as queries were not resolved timeously. It was highlighted that Council was working with an outdated system, with insufficient staff members which had led to the WhatsApp line not being managed properly.

As a result, repeat calls were being received due to breakdown of communication between the Call Centre staff members and the Technicians resolving queries on the ground. It was proposed that an SMS system to alert customers on the progress of their queries be developed as well as establishment of Parks, Recreation & Culture (PRC) Unit at all Sizakala Centres.

In providing a response, Management advised that the available systems were designed for customer relations and Call Centres, however they were stand alone, which had posed a challenge. Confirmation was given that there would be collaboration between the Governance and International Relations Cluster and other Units such as Parks, Recreation and Culture to ensure incorporation of services at Sizakala Centres,


Thereafter;


5.1 That the Customer Relations Management Policy as per Annexure “A” of the report of the City Manager dated 2020-09-25, be approved.

5.2 That Council notes the Municipal Contact Centre project progress with further progress to be provided after a period of three (3) months.ADOPTED, by the majority vote.

6. PUBLIC CONSULTATION: ENERGY STRATEGIC ROADMAP (ESR) AND ETHEKWINI INTEGRATED RESOURCE PLAN (EIRP) (27/1/2/P)

(Page 202)


6.1 That Council notes the update on the stakeholder engagement process and key issues that emerged in relation to the changing energy landscape.

6.2 That authority be granted for the Energy Office to embark on public consultation for the Energy Strategic Roadmap and EThekwini Integrated Resource Plan as informed by Section 195(1)(e) of the Constitution of the Republic of South Africa (Act No. 108 of 1996).ADOPTED.

7. APPLICATION FOR AN AMENDMENT TO A COUNCIL RESOLUTION TAKEN ON 31 MARCH 2016 ( 17/2/1/2/3)

(Page 208)


7.1 That in order to ensure the correct property is transferred to the Provincial Department of Human Settlements, Council approves the following amendment of the resolutions relative to “Application to Sell Various Portions of Land to the KwaZulu-Natal Department of Human Settlements for the Re-settlement of the Inanda Displaced Trader Groups”, as adopted by Council on 31 March 2016:

7.1.1 That the Municipality declares in terms of Section 14(6) of the Municipal Finance Management Act, Act 56 of 2003, read together with Regulation 20 of the MFMA Asset Transfer Regulations that Erf 798 Trenance Manor, Ptn 1 of Erf 1 Redfern, Erven 74-77 and 85-87 Lenham and Erf 2009 Caneside be transferred to the KwaZulu-Natal Department of Human Settlements for the onward sale and transfer to the Inanda Displaced Traders groups at an amount of R30.00 (Thirty Rand) per square meter in terms of the existing Displaced Trader Programme.


7.1.2 That a suitably worded condition in favour of the Municipality be included as a restriction in title in respect of all the sale agreements and that this condition is to be carried forward in title when transfer takes place from the Department to the various displaced Traders groups.

7.1.3 That Council notes all costs of survey are to be for the account of the KwaZulu-Natal Department of Housing.

7.1.4 That authority be granted to the Head: Real Estate to sign all documents necessary to conclude the various agreements in this regard. ADOPTED, by the majority vote.

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2. SECOND REPORT OF THE EXECUTIVE COMMITTEE: MEETING HELD ON TUESDAY, 2020-10-27

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1. REPORT OF ECONOMIC DEVELOPMENT AND PLANNING COMMITTEE: MEETING HELD 2020-10-21

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1.1 Motivation for eThekwini Municipality to Enter into Second Memorandum of Understanding with C40 Cities Climate Leadership Group Inc and Deutsche Gesellschaft Fur Internationale Zusammenarbeit (GIZ)(32/2/2):(Page 1: Economic Development and Planning Committee - Agenda 2020-10-21)

Authority is being sought for the City Manager to enter into a second Memorandum of Understanding (MOU) with C40 Cities Climate Leadership Group Inc.and Deutsche Gesellschaft Fur Internationale Zusammenarbeit (GIZ) in order to facilitate ongoing support for the C40 Cities Finance Facility for it eThekwini Municipality to continue developing a business case and exploring financing options for the expansion of the existing Sihlanzimvelo program and River management process in the eThekwini Municipal area.

The program and other river management programmes demonstrate the importance of investing in ecological infrastructure in a way that enhances the natural environment, supports the effective functioning of existing “grey” infrastructure,and advances climate adaptation and improves human wellbeing.

The current MOU expires on 19 September 2020, and therefore a second MOU, which will remain substantively unchanged from the first needs to be entered into between the parties to facilitate the completion of work under this partnership.


1.1.1 That authority be granted to eThekwini Municipality to enter into a second Memorandum of Understanding (MOU), to be valid until 31 March 2021, with C40 Cities Climate Leadership Group Inc and Deutsche Gesellschaft Fur Internationale Zusammenarbeit (GIZ) in order to facilitate continued support for the finalisation of business case, and identification of financing options for Sihlanzimvelo Programme and river management.


1.1.2 That authority be granted to the City Manager to sign a Memorandum of Understanding alluded to in .1 above on behalf of the eThekwini Municipality.ADOPTED.

1.2 Renewal of Memorandum of Agreement with Inanda, Ntuzuma and KwaMashu National Construction Incubator – 2020/21 to 2022/23 (20/1/6/3):(Page 6: Economic Development and Planning Committee - Agenda 2020-10-21)

Authority is being sought for the City Manager to enter into a three-year Memorandum of Agreement with Inanda, Ntuzuma and KwaMashu (INK) National Construction Incubator and authorise transfer of funds for three years starting from 2020 to 2023 in terms of Section 67 of the Municipal Finance Management Act of 56 of 2003 in order to facilitate and support enterprise development, investment and economic inclusion of SMME’s in townships and rural areas.

Renewal of the program will provide financial support toward the incubation program which aims to enhance the capacity of construction SMMEs through the structured transfer of business and technical knowledge that leads to sustainable business practices, job creation and positive contribution to the City's economy.


1.2.1 That authority be granted for the City Manager to enter into a Memorandum of Agreement with Inanda, Ntuzuma and KwaMashu (INK) National Construction Incubator for a period of three (3) years, 2020/21 to 2022/23 to provide financial support towards the incubation programme which aims to enhance the capacity of construction SMMEs through the structured transfer of business and technical knowledge that leads to sustainable business practices, job creation and positive contribution to the City’s economy.

1.2.2 That subject to the approval of .1 above, authority be granted to the Head : Business Support, Tourism and Markets to transfer the sum of R3 500 000.00 (Three Million Five Hundred Thousand Rand), excl. VAT, in the 2020/21 financial year R3 700 000.00 (Three Million Seven Hundred Thousand Rand), excl. VAT, in the 2021/22 financial year, and R3 800 000 (Three Million Eight Hundred Thousand Rand), excl. VAT, in the 2022/23 financial year to the National Construction Incubator for the implementation of the INK Construction Incubation Programme in terms of Section 67 of the Municipal Finance Management Act No. 56 of 2003.

1.2.3 That subject to the approval of .1 and .2 above, the Head: Business Support, Tourism and Markets be granted authority to monitor work and report back to the Economic Development and Planning Committee in terms of the Memorandum of Agreement and Section 67 of the Municipal Finance Management Act No. 56 of 2003.

Financial Implications:A total amount of R11 000 000 (Eleven Million Rand) has been provided over the next three years

Year 1 : R3 500 000.00 (excl VAT) to be provided in 2020/2021 financial year Year 2 : R3 700 000.00 (excl VAT) to be provided in 2021/2022 financial year Year 3 : R3 800 000.00 (excl VAT) to be provided in 2022/2023 financial year

Vote Number : 26540.25445.170.12120.0000.38830.0010 FC NO. 2021/32/01

ADOPTED.


1.3 Request for Approval: Durban Film Office Production Hub Incentive Programme (20/2/1):(Page 35: Economic Development and Planning Committee - Agenda 2020-10-21)

Authority is being sought to establish the Durban Film Office Production Hub Incentive Program as part of eThekwini Municipality Film Sector Recovery Plan, and to seek approval for the Head: Economic Development to proceed with policy development to establish the Durban Film Office Production Hub Incentive Programme.

The proposed Production Hub Incentive Program is geared towards increasing skills, creativity and employment opportunities within the local film industry by attracting funded, serialised content to be based in eThekwini Municipality.

Having noted that once the incentive program is approved, the Durban Film Office will work with the eThekwini Municipality’s Legal team, and Treasury to finalise the legal and financial process to establish and manage the program,


1.3.1 That authority be granted for the Head: Economic Development to establish the Durban Film Office Production Hub Incentive Programme, which aims to increase skills, creativity and employment opportunities within the local film industry by attracting funded serialised content to be based within the Municipality, as part of the eThekwini Municipality Film Sector Recovery Plan.

1.3.2 That subject to the approval of .1 above, the Head: Economic Development be authorised to proceed with the development of the Durban Film Office Production Hub Incentive Policy.ADOPTED.

1.4 Request for Approval: Durban Film Office Production Development Programme (20/2/1):(Page 42: Economic Development and Planning Committee - Agenda 2020-10-21)

Authority is being sought to extend the Durban Film Office development programs and to outline plans and seek authority for the next cycle of projects of the Durban form office development programs. The Durban Film Office has three development programs targeting film makers at different levels in the industry Development Fund grant a microbudget grant and festivals and markets support grant.

The development programs have played a pivotal role in increasing Durban’s market share, skills development and attraction of productions of films in eThekwini Municipality, and continued support of these programs will play a key role in maintaining this project positive trajectory, for the next three years.


1.4.1 That authority be granted for the Head: Economic Development and Investment Promotion to continue supporting the Durban Film Office Development Programs and Festivals And Markets support policy for the development, growth, and competitiveness of the sector, and to implement the recommended changes set out in the report by the City Manager dated 2020-09-09.


1.4.2 That subject to the approval of .1 above, authority be granted to the Durban Film Office to increase Micro Budget Films Production grant of R150 000.00 (One Hundred and Fifty Thousand Rand) per project to R250 000.00 (Two Hundred and Fifty Thousand Rand) to align with best practice and ensure market integration and penetration and to accommodate budget increase the number of projects supported per annum will be reduced from five to three projects.

1.4.3 That subject to the approval of .1 above, authority be granted to the Durban Film Office to increase the Festivals and Markets grant of R25 000.00 (Twenty Five Thousand Rand) to R30 000.00 (Thirty Thousand Rand) to accommodate increased costs.

1.4.4 That subject to the approval of items .1 .2 and .3 above, authority be granted to the City Manager to conclude the necessary contractual agreements with successful applicants for the Durban Film Office Development Programs and for festivals and market support.

1.4.5 That subject to the conclusion of processes outlined in item .4 above, the Head: Economic Development be duly authorised to disburse funding in accordance with the approved contractual agreements.

Development Programmes:

FC No. 2021/18/20Business Unit

Item Fund Costing Project Region Expenditure proposed

Financial Year(s)

26106 25030.17 12120 0000 63330 0010 R 1,450,000 2020/21

26106 25030.17 12120 0000 63330 0010 R 1,450,000 2021/22

26106 25030.17 12120 0000 63330 0010 R 1,450,000 2022/23

ADOPTED.

1.5 Development of Rural and Township Tourism Interventions (20/1/4/3):(Page 49: Economic Development and Planning Committee - Agenda 2020-10-21)

Authority is being sought for the Economic Development Unit to pursue development and enhancement of various tourism opportunities and tourism routes present within the various regions of eThekwini Municipality, in collaboration with the Local History Museums, Durban Tourism and external stakeholders, with the intention being to build on the existing tourism assets in order to enhance the growth of rural and township tourism and SMME businesses.

This will have a positive impact on rural and township economy, and the diversification of tourism products along the route will emerge thus supporting the approach of community-based tourism, which is an approach aligned to the development of township and rural economies.


1.5.1 That authority be granted to the Deputy City Manager: Economic Development and Planning to implement the development and enhancement of tourism opportunities and tourism routes within the various regions of the eThekwini Municipality, in collaboration with the Local History Museums, Durban Tourism and external stakeholders.


1.5.2 That authority be granted to the Head: Economic Development and Investment Promotion to proceed with the initiatives as outlined in the report by the City Manager dated 2020-08-02, it being recorded that the diversification of tourism products along the identified routes will support the approach of Community-Based Tourism, an approach aligned to the development of township and rural economies.

1.5.3 That subject to the approval of .1 and .2 above, authority be granted to the Head: Economic Development and Investment Promotion to report back to the Economic Development and Planning Committee on progress of the project.ADOPTED.

1.6 Request for Approval: Transfer of Lamontville Multimedia Centre to EThekwini Municipal Academy:(Page 64: Economic Development and Planning Committee - Agenda 2020-10-21)

EThekwini Municipal Academy (EMA) will take over and operate as an existing municipal owned property in the Lamontville area that was prepared as a Multimedia Center Training facility which is currently used to run youth related development programs.

There is currently a need for youth empowerment and development in the area, and the initiative aims to unlock youth targeted initiatives for which EMA is strategically set up to deal with.


1.6.1 That authority be granted to the Head: Economic Development to transfer the Lamontville Multimedia Centre, an existing facility prepared as a Multimedia Development and Training Centre to the EThekwini Municipal Academy (EMA) which is mandated to run skills development programmes, with the aim of enhancing the youth targeted initiatives in the Lamontville area.

1.6.2 That authority be granted to the Chief Learning Officer: EMA to take over the management and operation of the facility.

1.6.3 That authority be granted to the Head: Economic Development to transfer to EMA the building together with the budget of R900 000.00 (Nine Hundred Thousand Rand) allocated to run and maintain the facility.

1.6.4 That subject to the adoption of .1 and .2 above, authority be granted to the Head: Expenditure to transfer funds associated with the management and maintenance of the Lamontville Multimedia Centre from the Economic Development Unit to EMA during the budget adjustment period.

2020/21

26102.10840.12.12120.0000.MRC01.0010 R800 000.00

26102.10640.12.12120.0000.38570.0010 R100 000.00

ADOPTED.


2. REPORT OF FINANCE, SECURITY AND EMERGENCY SERVICES COMMITTEE: MEETING HELD 2020-10-22

(Page R6)

2.1 Budget Statement Report for the Month Ending 31 August 2020 (7/1/4):(Page 15: Finance, Security & Emergency Services Committee - Agenda 2020-10-22)


That the Budget Statement report for the month ended 2020-08-31, submitted by the Accounting Officer as per his report dated 2020-09-25, in compliance with Section 71 of the Municipal Finance Management Act 56 of 2003 and in terms of Government Notice 32141 dated 17 April 2009, relating to the “Local Government: Municipal Finance Management Act 2003, the Municipal Budget an Reporting Regulations”, be noted.NOTED.

2.2 Public Tender Awards Inclusive of Section 36 Awards of eThekwini Municipality for the Month of September 2020 (9/1/3):(Page 180: Finance, Security & Emergency Services Committee - Agenda 2020-10-22)


2.2.1 That the public tender awards by the City for the month of July 2020, inclusive of awards made in terms of Section 36 of the Supply Chain Management Regulations, as contained in the report by the Accounting Officer dated 2020-10-13, be noted.

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

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

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

2.2.5 That the Accounting Officer shall table a report to the Committee relative to the disciplinary, criminal and recovery actions taken, it being recorded that the Accounting Officer can only respond when the reports are available.NOTED.


2.3 Progress Report on 1.5 Billion Borrowing for Capital Projects:(Page 207: Finance, Security & Emergency Services Committee - Agenda 2020-10-22)


That Council notes the report on borrowing relating to an amount of 1.5 Billion long term debt to finance the Municipality’s Capital Budget in the 2020/2021 financial year, with the borrowing to be a combination of two (02) funding instruments, being an annuity loan and a bond, therefore, the Municipality will proceed to issue Request for Proposals (RFP) inviting lenders to provide the Municipality with annuity loan.NOTED.

2.4 Report on Investments for the Month of September 2020 (7/11/4):(Page 212: Finance, Security & Emergency Services Committee - Agenda 2020-10-22)


That the report on investments for eThekwini Municipality as at 2020-09-30, which records total funds invested at financial institutions as R3 610 Million at an average of return on investment of 3,89%, as submitted by the Accounting Officer, in line with the requirements of the Municipal Cash Management and Investment Regulation of the Municipal Finance Management Act, 2003, be noted.NOTED.

2.5 Quarterly Report on Withdrawals from Municipal Bank Account in terms of the Municipal Finance Management Act (7/8/6):(LOT: Finance, Security & Emergency Services Committee - Agenda 2020-10-22)


2.5.1 That the report on withdrawals from the Municipal bank account as at 30 September 2020, submitted in terms of Section 11(4) of the Municipal Finance Management Act, be noted, it being recorded that the withdrawals relate to the following:

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

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


2.6 Budget Statement Report for the Quarter Ended September 2020:(LOT: Finance, Security & Emergency Services Committee - Agenda 2020-10-22)

Committee commended the Finance Unit for the improvement in cash collected as at September 2020. Further acknowledgement was on the massive cash collected in respect to the Electricity Unit. It was noted that Government departments debts were due end of October 2020. However, a concern was raised on Water collection rate, which continued to pose challenges in the City’s revenue.

In-depth elaboration on the report was made at the Portfolio Committee level, during which clarity was provided to various issues raised. At the Executive Committee level, the Democratic Alliance pointed out that the collection rate of 117% reported was not translated into improvements in cash if 40 days cash on hand is reported.

Further, concern was raised over issues relating to aging infrastructure and non-responsiveness to water leaks and water pipe burst. Critical operational challenges cited in this regard related to non-availability of water meters; spare parts; operators; operational vehicles; and licenses. That apparently there was lack of responsibility and accountability at the respective Units level in relation to Water and Sanitation Unit operational challenges.

On the issue of collection rate, the African National Congress cited huge improvements on electricity meter readings and thus improved collection rate. It was acknowledged that challenges still exist in Water and Sanitation Unit. Speaking on the matter, the Chief Financial Officer pointed out that while there was improvement in collection rate, cash reduction will be experienced due to funding operating budget. That a strategy is in place to improve days cash on hand to remain between 60 and 90 days. He also spoke of fruitful engagements to address challenges relating to water and sanitation operations. The African Nation Congress thereafter committed to focus on addressing issues relating to water and electricity. As such, a detailed report in this regard was requested to serve before the Executive Committee. On the other hand the importance of monitoring expenditure patterns was raised thereby achieving financial stability.

On this basis,


2.6.1 That the Quarterly Budget Statement report for the period ended 2020-09-30, submitted by the Accounting Officer as per his report dated 2020-10-20, in compliance with Sections 52 (d) and 71 of the Municipal Finance Management Act 56 of 2003 and in terms of Government Notice 32141 dated 17 April 2009, relating to the “Local Government: Municipal Finance Management Act 2003, the Municipal Budget an Reporting Regulations”, be noted.

2.6.2 That it be noted, the increase in collection rate of 117% as at September 2020, was commended, with year to date 90.33%. However, cash and investments amountingto approximately R3.7 billion representing 40 days cash on hand was of concern, which also impacts on the liquidity ratio.

2.6.3 That accordingly, expenditure needs to be monitored and austerity measures applied in terms of reducing expenditure to prevent further liquidity concerns and challenges, in ensuring reasonable cash on hand at year end.


2.6.4 That in terms of the issues with varying distribution water losses, the Water and Sanitation Unit addresses meter readings challenges to ensure that adjustments are not distorting distribution losses.

2.6.5 That it be noted that in terms of the Municipal Key Indicators, one of the key areas impacting on inflation was fuel price increases as well as municipal tariffs and, in this regard, that the City should be reviewing tariffs increases in line with affordability and inflation.NOTED.

3. REPORT OF THE HUMAN SETTLEMENTS AND INFRASTRUCTURE COMMITTEE: MEETING HELD ON 2020-10-23

(Page R9)

3.1 Interface Agreement Between eThekwini Municipality, Engen Petroleum Limited and Locomotives, Engines and General Engineering CC (26/3/1/2):(Page 21 : Human Settlements &Infrastructure Committee - Agenda 2020-10-23)


3.1.1 That given the statutory requirements to achieve compliance with the National Railway Safety Regulator Act No. 16 of 2002, as amended, in relation to rail or road crossings, authority be granted to the City Manager to enter into agreement with Engen Petroleum Limited and Locomotives Engines and General Engineering ccin this regard.

3.1.2 That authority be granted to the Head: Legal and Compliance of eThekwini Municipality to approve final draft of the agreement.ADOPTED.

3.2 Request for Authority to Transfer Funds to Project No Y8162: Sterkspruit Trunk Sewer Project (Ward 4) WS 2020/092 (23/2/1/3/3) & (23/2/1/5/R):(Page 33 : Human Settlements &Infrastructure Committee - Agenda 2020-10-23)

At the Portfolio Committee level the Members of the Democratic Alliance were not in support of the recommendations, as they were of the view that in-loco inspection ought to be undertaken in the first instance. However, the recommendations were supported by the majority.

With the Executive Committee being in agreement,


3.2.1 That authority be granted for the transfer of funds in the amount of R200 000.00(Two Hundred Thousand Rand), excluding VAT, from the savings identified in the 2020/2021 financial year, from project no Y8743 Riverside Road Sewer Rising Main Relocation in Briardene (Wards 34 and 36) to Project No.: Y8162 Sterkspruit Trunk Sewer Project (Ward 4) for land acquisitions and environmental authorisations related to the proposed pipeline which traverses numerous privately owned properties.


3.2.2 That authority be granted to the Deputy City Manager: Finance to include in his Adjustment Budget Report, the transfer of funds in the amount of R200 000.00 (Two Hundred Thousand Rand), excluding VAT, from Project No.: Y8743 Riverside Road Sewer Rising Main Relocation in Briardene (Wards 34 and 36) to Project No.: Y8162 Sterkspruit Trunk Sewer Project (Ward 4).

Financial Implications:

The funds required for project no Y8162 for the 2020/2021 financial year is reflected in the table below:

Land Acquisitions R100 000.00

Environmental Authorisations R100 000.00

Total R200 000 00

Vote No.: Y 8162 R200 000.00

FC No.: 365/C253ADOPTED, by the majority vote.

3.3 Proposed Alienation of Proposed Portion [A] (of 3) of Erf 6388 Pinetown for Residential Purposes to Adjoining Owner of 21 Crux Place 17/2/1/2/3:(Page 47 : Human Settlements &Infrastructure Committee - Agenda 2020-10-23)

At the Portfolio Committee level, the Members of the Democratic Alliance were not in support of the recommendations as they were of the view that a tour of inspection to visit properties be undertaken in the first instance. However, the recommendations were subsequently supported by the majority.



3.3.1 That Council declares that in terms of Regulation 5 of the Asset Transfer Regulation, 2008, Section 14(2)(a) and (b) of the Municipal Finance Act, 2003:

3.3.1.1 The proposed Portion [A] (of 3) of ERF 6388 Pinetown in extent 8m₂ (meter squared) is not required to provide the minimum level of basic Municipal services and

3.3.1.2 The current market value of the property is currently assessed at a value of R2000.00 (Two Thousand Rand), exclusive of VAT.

3.3.2 That the proposed Portion [A] (of 3) of ERF 6388 Pinetown is currently zoned Road Reserve and the proposed Portion must be rezoned to Special Residential.

3.3.3 That the proposed Portion [A](of 3) of ERF 6388 Pinetown must be consolidated with the adjoining property ERF 11450 of Pinetown, however, should that not be possible the area may be notarially tied to the adjoining property.

3.3.4 That all cost incidental to the transaction shall be at the cost of the purchaser.



3.3.5 That authority be granted to the Head: Real Estate to sign all documents necessary to give effect to this transaction in terms of the Supply Chain Management Policy of the City and any other applicable legislation and that it shall be further subject to such additional conditions as the Head: Real Estate considers necessary to protect Council interest.ADOPTED.

3.4 Proposed Alienation of Proposed Sale of Remainder of Portion 14 of Erf 665 Sea View by Private Treaty to the Adjoining Owner Plan No SJ 4651/10: (Page 128 : Human Settlements &Infrastructure Committee - Agenda 2020-10-23)

At the Portfolio Committee level, the Members of the Democratic Alliance were not in support of the recommendations as they were of the view that a tour of inspection to visit properties be undertaken in the first instance. However, the recommendations were subsequently supported by the majority.



3.4.1 That in terms of Regulation 5 of the Asset Transfer Regulations, 2008, Section 14 (2) (a) and (b) of the Municipal Finance Act 2003:

3.4.1.1 The Rem of Portion 14 of Erf 665 Sea View in extent of 57m₂ (meter squared) is not required to provide the minimum level of a basic Municipal services and

3.4.1.2 That the current market value of the property is currently assessed at a value of R37 400. 00 (Thirty-Seven Thousand Four Hundred Rands), exclusive of VAT.

3.4.2 That no encroachment over Municipal sewer servitude permitted. Prior to any development Sewer Impact Analysis to be done for building plan submitted for approval.

3.4.3 That all cost incidental to the transaction shall be at the cost of the purchaser.

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

3.5 Rectification of Pre 1994 Housing Stock in Former R293 Townships (22/7/1/1/3):(Page 206 : Human Settlements &Infrastructure Committee - Agenda 2020-10-23)

At the Executive Committee level, the Chairperson of Human Settlements and Infrastructure Committee gave background information in relation to fundingfor rehabilitation of houses in former R293 townships. That in order to fastrack the process, the Municipality has previously utilised its budget while awaiting funding from the Provincial Department of Human Settlements. This then subsequently led to the funding arrangement of splitting the housing funding received for a certain portion to go towards servicing the debt and the other portion to go towards housing construction.


The arrangement agreed to lately was the 80/20 split, with 80% of funds to go towards constructing houses and 20% towards servicing debt. However, given the backlog in housing construction and/or rehabilitation, an amendment is therefore being proposed to use 100% funding for construction of houses in the 2020/21 financial year.

The three (03) DA Members abstained on this matter at this stage and the 5 ANC Members were in support thereof.

Therefore, by the majority support,


3.5.1 That the report by the Head: Human Settlements dated 2020-08-20 relative to Rectification of Pre-1994 Housing in the Former R293 towns with a view to notifying the Committee of the revision from previous arrangement of settling debt by the 60/40 fragment arrangement to 80/20 arrangement for the Rectification of Pre-1994 Housing Stock in the Former R293 Towns, including the current statusof the programme and projected deliverables, be noted.

3.5.2 That notwithstanding the arrangement of 80/20 split agreed to in .1 above, given the backlog in housing construction, during the 2020/21 financial year the split arrangement be not implemented thus allowing 100% funding to be utilised for construction and/or housing rehabilitation in the former R293 townships.

3.5.3 That, subject to the approval of .2 above, an amount of R30 000 000.00 (Thirty Million Rand) allocated in the current financial year be utilised in its entirety towards constructing or rehabilitating R293 townships houses.

Financial Implication:

No Budget 80% New Work Balance from 2019/20 Total Budget

1 R30M R24M R28.9M R52.9M


3.6 Proposed Amendment of Rental Structure: Lease 8 on Erf 11714 Durban:(Page 258 : Human Settlements &Infrastructure Committee - Supplementary Agenda 2020-10-23)

The three (03) DA Members abstained on this matter at this stage and the 5 ANC Members were in support.



3.6.1 That authority be granted to the Head: Real Estate to amend Clause No. 4.3 of the Notarial Deed of leases No. K64/1994L in respect of the lease of the premises described as lease 8 on ERF 11714 Durban.

3.6.2 That subject to the approval of .1 above, the current market rental value of the property currently assessed at a value of R95 000.00 (Ninety Five Thousand Rand), excluding VAT, escalating by 7.5% per annum for the ensuing 12 twelve years or 0.5% of turnover rental, whichever is greater between year 1 to year 10 and 1.5% from 11 to year 13 of the lease, be approved.


Year Basic rental per month excl VAT

Escalation rate Per Annum Turnover Rental

1 R 95 000.00 7.5% R 1 140 000.00 Or 0.5% whichever is greater2 R 102 125.00 7.5% R 1 225 500.00

3 R109 784.38 7.5% R 1 317 412.56

4 R118 018.20 7.5% R 1 416 218.04

5 R 126 869.57 7.5% R 1 552 434.84

6 R 136 384.79 7.5% R 1 636 617.48

7 R146 613.64 7.5% R 1 759 363.68

8 R157 609.67 7.5% R 1 891 292.04

9 R169 430.39 7.5% R 1 891 292.04

10 R 182 137.67 7.5% R 2 185 652.04

11 R 195 798.00 7.5% R 2 349 576.00 1.5% whichever is greater12 R 195 798.00 7.5% R 2 525 794.20

13 R 226 269.06 7.5% R 2 715 228.72

3.6.3 That subject to the adoption of .1 and .2 above the Head: Real Estate be authorized to sign all documents relating to the amendment of the Rental Clause.

3.6.4 That the cost of documenting the Amendment of lease be borne by the lessee.ADOPTED, by the majority vote.

3.7 Request to MEC: COGTA for Extension of Validity Period of Current eThekwini Valuation Roll:(Page 345 : Human Settlements &Infrastructure Committee - Supplementary Agenda 2020-10-23)

The three (03) DA Members abstained on this matter at this stage and the 5 ANC Members were in support.



That authority be granted to the City Manager to request the MEC: Co-operative Governance& Traditional Affairs (KwaZulu Natal) to grant eThekwini Municipality an extension of the validity period of the 2017 general valuation roll from four (4) years to five (5) years to expire 2022-06-30 in terms of Section 32(20(b) of the Municipal Property Rates Act, No.6 of 2004, as amended.ADOPTED, by the majority vote.


3.8 Request for Approval: Permit for Pedestrianized Access Only (by Footpath and Staircases) to 184 Residential Sites Within KwaMashu J and K Human Settlement Project (25/4/10/1/2):(Page 349 : Human Settlements &Infrastructure Committee - Supplementary Agenda 2020-10-23)


3.8.1 That authority be granted to the Deputy City Manager: Human Settlements, Engineering and Transport to implement the incorporation and development of pedestrian access in the form of footpaths and staircases (within a 400m radius of existing roads that may function as public transport routes to residential sites) in the development of KwaMashu J & K Housing Project.

3.8.2 That exceptionally steep topography, valleys and other inherent features affecting individual site access and the urgency to deliver housing and services to needy beneficiaries be noted, it being recorded that the desired objective is to provide services to those residents already housed within the subject area including support given by the local Councillor and community representatives,

3.8.3 That the SG Diagrams be endorsed to indicate sites that have only pedestrianised access in perpetuity and title deeds for sites which are to retain pedestrianised access in perpetuity shall have a title condition with the restriction for vehicular access.ADOPTED.

3.9 Authority to Renew Implementation Protocol for Level 2 Accreditation for Undertaking the Housing Function:(Page 487 : Human Settlements &Infrastructure Committee – Second Supplementary Agenda 2020-10-23)

The Committee noted that the Municipality had been pursuing Accreditation and Assignment of the Housing function with Level 1 accreditation being awarded in 2007 and Level 2 in 2010 and renewed in 2013 and 2017. It was also noted that Level 2 Accreditation allows the transfer of operational funds from the KwaZulu-Natal Department of Human Settlements to the eThekwini Municipality to cover costs incurred in the provision of housing.

During discussion at the Executive Committee level, clarity was provided on the difference between Level 1 and Level 2 accreditation. That all Municipalities are generally delegated Level 1 functions, including basic undertaking housing, feasibility studies, management of housing backlog etc. On the other hand, Metros are delegated Level 2, which is s a level above and with increased budget requirements. EThekwini Municipality is currently receiving Level 1 funding but 50% of housing functions are delegated to the Municipality and is undertaking own planning in this regard. Therefore, a need exists to revise the funding agreement between the Municipality and the Province.


3.9.1 That authority be granted to the City Manager to renew Implementation Protocol for Level 2 Accreditation for undertaking the Housing function, as indicated in the report of the Head: Human Settlements dated 20 September 2019, it being noted that the protocol is a three-year agreement renewable subject to the Municipality’s capacity to implement the programmes on which it is accredited.


3.9.2 That subject to the approval of .1 above, authority be granted to His Worship the Mayor, Councillor TM Kaunda, to sign the Implementation Protocol between the Provincial Department of Human Settlements (KZN) and eThekwini Municipality.

3.9.3 That it be noted that as an accredited Level 2 Municipality, the KwaZulu-Natal Department of Human Settlements will pay 4% of the capital expenditure of the HSDG grant to the eThekwini Municipality each quarter, estimated at R3 750 000 (Three Million Seven Hundred and Fifty Thousand Rand), towards the operating expenditure of the Municipality’s Human Settlements Unit.ADOPTED.

4. SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN QUARTERLY REPORTING: 30 SEPTEMBER 2020

(Page 14)


That in terms of the Municipal Finance Management Act, Circular No. 13, the Service Delivery and Budget Implementation Plan for the Quarter 1 ended 30 September 2020, which reflects an overall achievement of 66.39% for eThekwini Municipality, and with its entities, Inkosi Albert Luthuli International Convention Centre recording 70% achievement and the Durban Marine Theme Park (Ushaka Marine World), recording 77.78%, be noted.NOTED.

5. ADDENDUM: RECOMMENDATIONS TO FUND HOMELESS SHELTERS (28/1/4 & 22/8/2)

(Page 93)


5.1 That the programme for the homeless be supported, it being noted that the costs have been rationalized and reduced from R66 Million in 2019/2020 to R20 Million in the 2020/2021 financial year.

5.2 That the 2020/2021 Budget as per the Annexure A in the report of the City Manager dated 2020-08-07, including contingencies, be supported.

Annexure ASAFER CITIES – HOMELESS PEOPLE SHELTERS PROPOSED

BUDGET

2020/2021

Proposed Budget

2020/2021

No. Operating Budget Description Cluster Department RM

1 Soup Kitchens – catering CES Safer Cities 5 952 000

2 Site Cleaning Services CES Safer Cities 960 000

3 Portable Toilets Hire Charges CES Safer Cities 2 529 600

4 Showers Hire Charges 2 529 600

5 Stores Issues (toilets paper, refuse bags, soap, sanitizers)

CES Safer Cities 1 440 000

6 Security - External CES Safer Cities 2 544 000


SAFER CITIES – HOMELESS PEOPLE SHELTERS PROPOSED BUDGET

Proposed Budget

2020/2021

No. Operating Budget Description Cluster Department RM

7 Electricity CES Safer Cities 504 800

8 Water CES Safer Cities 540 000

9 Contingencies CES Safer Cities 3 000 000

20 000 000

SUMMARYDESCRIPTION

BUDGET YEAR2020/21

RM

Other Materials (Consumable Stores) 1 556 960

Contracted Services 16 643 040

Charges 1 800 000

Total Operating Expenditure 20 000 000

Site Name No. of Toilets No. of Residents No. of Tents

1 Block AK 2 127 4

2 Drive Inn 6 345 16

3 Jewish Club 4 144 5

4 Albert Park 2 64 4

5 Isipingo 2 37 2

6 Strollers 76 0

7 Pinetown 4 100 4

TOTAL 20 893 35Notes: 1. The following two (2) sites will be closed and people residing here will be relocated1.1 Phoenix – People relocated to ODI (Old Drive-Inn Site)1.2 Isipingo – People will be relocated to Albert Park

2. Proposed use of soup kitchen

5..3 That subject to the adoption of .1 and .2 above, the Urban Settlements Development Grant (USDG) funding be considered and prioritized to meet the costs.

5.4 That the procurement of all goods and services follow the Supply Chain Management Policy as adopted by Council on 2019-06-27.ADOPTED, by the majority vote.

6. GRANT FUNDING FOR CITY PEOPLE ETHEKWINI AND MEMORANDUM OF AGREEMENT TO REDUCE HOMELESSNESS AND RELATED SOCIAL ILLS IN ETHEKWINI (28/1/4 & 22/8/2)

(Page 111)

Elaborating on the matter, the Deputy Mayor advised that the intention is to create a special purpose vehicle to allow the Municipality to also attract funding from private sector to address issues relating to homelessness within the City. It was clarified that the City People of eThekwini is a Not for Profit Company and that the matter under consideration relates to approval of the business plan and the funding thereof. A proposal was then made to conduct further investigation to determine legalities surrounding the relationship between the Municipality and the City People of eThekwini to ensure compliance with all necessary processes.


Thereafter,


6.1 That a 3-Year Business Plan for City People eThekwini Not for Profit Company(NPC) (2020-2023) to undertake programmes linked to homelessness and related social ills, attached as Annexure A in the report of the City Manager dated 2020-10-26, be approved.

6.2 That subject to the adoption of .1 above, authority be granted for the Deputy City Manager: Finance to allocate grant funding to the Special Purpose Vehicle called City People eThekwini NPC of R6 Million from the Urban Settlements Development Grant (USDG) and R500 000.00 (Five Hundred Thousand Rand) identified from savings within 2020/2021 Community and Emergency Services (CES) Cluster budget.

6.3 That subject to the adopted of .1 and .2 above, authority be granted to the City Manager to enter into a three (03) year Memorandum of Agreement (MOA) in terms of Section 67 of the Municipal Finance Management Act, between the eThekwini Municipality and the City People eThekwini NPC and from the date of MOA signing to transfer and manage funds for city funded programmes to address homelessness and related social ills as outlined in the three (3) year Business Plan.

Financial Implications:The seed funding to implement the programmes and projects as per the attached business plan in the report of the Head: Safer Cities dated 2020-07-27 will be allocated as follow:

Financial Year Amount

2020/2021 R2 200 000.00

2021/2022 R2 150 000.00

2022/2023 R2 150 000.00

In the event of the building or property leased to the City People eThekwini NPC, the municipality will take responsibility for maintenance and repairs.

The above seed funding for the SPV will be sourced from USDG savings and provided through the Budget Adjustment process, whereareas the SPV will need to secure other funding streams to implement the business plan.


7. INKOSI ALBERT LUTHULI INTERNATIONAL CONVENTION CENTRE: REPORTING IN TERMS OF SECTION 101 OF THE MUNICIPAL FINANCE MANAGEMENT ACT NO 56 OF 2003 (MFMA)

(Page 121)

As per statutory requirement, the report on the performance of the Inkosi Albert Luthuli International Convention Centre (ICC) is presented, as informed by Section 101 of the Municipal Finance Management Act No. 56 of 2003. In noting that the report had initially reflected Durban ICC, the Committee emphasised the importance of referring to the accurate name whenever reference is made to ICC. As such, an amendment was made to replace Durban ICC with Inkosi Albert Luthuli ICC.

The report submitted outlines the following key issues:


(i) Steps taken to recover outstanding debts(ii) Measures being taken to maintain a strict Credit Control Policy(iii) Initiatives taken to reduce costs(iv) That the entity has not used a bank overdraft to fund any expenditure, and as

at the end of August 2020 had cash reserves of R137 Million(v) That the entity has sufficient cash reserves in place to meet its obligations(vi) The ICC submission attached to the report of the City Manager dated

2020-10-23 outlines numerous activities undertaken by the entity to mitigate financial losses incurred as a result of the COVID-19 pandemic

(vii) Whilst the entity is exploring various options to repurpose its building for alternate uses, the worst case scenario shows that an amount of R64 Million is required to be utilised from the entity’s cash reserves for the period commencing 01 October 2020 to 30 June 2021

(viii) Permission is therefore sought to utilise the cash reserves as outlined in the preceding sentence.

With it being recognised that ICC is a catalyst for economic and tourism development, and it being acknowledged that further options will be explored to identify other revenue streams to reduce projected operating loss,


7.1 That Council notes the submission of the report by the Accounting Officer of Inkosi Albert Luthuli International Convention Centre, in terms of Section 101 of the Municipal Finance Management Act (MFMA), details of which are contained in the submission attached to the report by the City Manager dated 2020-10-23, and the synopsis of which are listed in (i) to (viii) in the preamble.

7.2 That Council approves the request by the Accounting Officer of Inkosi Albert Luthuli International Convention Centre to utilize an amount of R64 Million of the entity’s cash reserves commencing from 01 October to 30 June 2020 to repurpose the building thereby mitigating financial losses.

7.3 That Council notes commitment by the ICC Accounting Officer in that endeavours will be made to ensure future financial viability of the ICC and to meet any funding shortfalls that may compromise the ICC to continue trading as an “going concern”.ADOPTED.

8. DURBAN MARINE THEME PARK (USHAKA MARINE WORLD): REPORTING IN TERMS OF SECTION 101 OF THE MUNICIPAL FINANCE MANAGEMENT ACT NO 56 OF 2003 (MFMA)

(Page 130)

As per statutory requirement, the report on the performance of the Durban Marine Theme Park (DMTP), and trading as Ushaka Marine World) is presented, as informed by Section 101 of the Municipal Finance Management Act No. 56 of 2003.


The report submitted outlines the following key issues:

(i) In light of the COVID-19 pandemic the park was not fully operational as the National Lockdown Regulations limited gatherings and social distancing which impacted footfalls

(ii) Whilst cost containment and reduction initiatives were implemented, these have not been adequate to negate losses currently being incurred by DMTP

(iii) On 24 September 2020 the entire park commenced with its operations(iv) DMTP is currently utilising the minimum cash reserves of R25 Million to

meet its obligations(v) DMTP requests financial support in the amount of R66.9 Million during the

2020/21 financial year and to be allocated before end October 2020(vi) Request to repurpose R15 Million of the grant approved for capital projects

and to also repurpose R6.9 Million of the grant payable to South African Association for Marine Biological Research to meet cash shortfalls

(vii) Request for the going concern Council resolution for the financial year June 2020 to June 2021

(viii) Request for entity to negotiate the utilities rates charge(ix) Request to allow the entity to suspend utility payment until the entity’s cash

flow improves(x) Approval of Nedbank overdraft of R10 Million

During discussion, the Committee submitted that the DMTP financial challenges could not be confined to the COVID-19 pandemic since the entity has continuously requested financial relief from the Municipality with no proper plan being submitted on how to generate profit and sustain itself. It was therefore agreed that a Turnaround Plan was required for the DMTP and that the newly appointed Chief Executive Officer is expected to present such to the Executive Committee.

Meanwhile, it was recognised that DMTP was a strategic facility for the City and the KZN Province. As such,


8.1 That Council notes the submission of the report by the Accounting Officer of Durban Marine Theme Park (DMTP) in terms of Section 101 of the Municipal Finance Management Act (MFMA), details of which are contained in the report by the City Manager dated 2020-10-23, and with its synopsis contained in (i) to (x) of the preamble.

8.2 That Council approves relief funding in the amount of R15 Million to meet cash shortfalls from the divided income that is payable to the Municipality by the Effingham Development JV.

8.3 That Council approves repurposing of R15 Million of the grant that was approved for capital projects to meet cash shortfalls.

8.4 That Council approves repurposing of R6.9 Million of the grant that is payable to South African Association for Marine Biological Research (SAAMBR) to meet cash shortfalls.


8.5 That subject to the adoption of .2, .3 and .4 above, authority be granted to the City Manager to facilitate the disbursement of funds to DMTP.

8.6 That Council approves suspension of payments by DMTP in respect of utilities until the mid-term review.

8.7 That Council notes commitment by the DMTP Accounting Officer in that endeavours will be made to ensure future financial viability of the ICC and to meet any funding shortfalls that may compromise the ICC to continue trading as an “going concern”.

8.8 That Council approves the disbursement of funds on a reimbursable basis for an amount of R11 512 000.00 (Eleven Million Five Hundred and Twelve Thousand Rand) towards capital projects, R6 Million towards a feasibility study and R8.5 Million for repairs and maintenance.

Financial Implications:The Municipality will provide R15 Million Relief Funding and further permit Durban Marine Theme Park to repurpose R15 Million that was earmarked for Capital Projects and R6.9 Million that was payable to SAAMBR to meet cash shortfalls. The R15 Million Relief Funding will be funded from the dividend income that is payable to the Municipality by the Effingham Development JV.ADOPTED, by the majority vote.

_______________

3. REPORT OF THE MUNICIPAL PUBLIC ACCOUNTS COMMITTEE

The recommendations of the Municipal Public Accounts Committee for the First Quarter of 2020/2021 Financial Year as contained in the Council Agenda (2020-10-29), were ADOPTED.

4. NOTICE OF MOTION

4.1 NOTICE OF MOTION : PROPOSED BY COUNCILLOR BD NAIDOO AND SECONDED BY COUNCILLOR Y GOVENDER: THE NEED TO ADDRESS THE BACK LOG OF SEWER RELATED COMPLAINTS (23/2/1/2) Notice of Motion, by majority vote, NOT CARRIED.

4.2 NOTICE OF MOTION : PROPOSED BY COUNCILLOR M BILLY AND SECONDED BY COUNCILLOR H SHOZI: INCREASED RESPONSE TIMES TO WATER, SEWAGE LEAKS AND BURST PIPES IN THE COMPLAINTS ETHEKWINI METRO (23/1/11/1/1/1) Notice of Motion, by majority vote, NOT CARRIED.

4.3 NOTICE OF MOTION : PROPOSED BY COUNCILLOR SAMIER SINGH AND SECONDED BY COUNCILLOR M JOHNSON: NUMEROUS COMPLAINTS ABOUT ILLEGAL DUMPING IN PHOENIX VACANT LANDS ZONE FOR SR180 (24/5) Notice of Motion, by majority vote, NOT CARRIED.


4.4 NOTICE OF MOTION : PROPOSED BY COUNCILLOR M JOHNSON AND SECONDED BY COUNCILLOR TM MTHETHWA: THEFT OF MUNICIPAL WATER METERS (23/1/11/6) Notice of Motion, by majority vote, NOT CARRIED.

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City Administration: Secretariat13 November 2020

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Minutes and De… · Web viewKindly 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