COUNCIL MEETING: 27 JULY 2017 - tshwane.gov.za Calendar/Attachments... · Roadshow which took place...

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COUNCIL MEETING: 27 JULY 2017

ANNEXURE A

PAGES

RESOLUTIONS OF THE MAYORAL COMMITTEE: 19 APRIL 2017 ……………………………………………………… 1 - 70

HIS WORSHIP THE EXECUTIVE MAYOR TS MSIMANGA

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A. MAYORAL COMMITTEE MEETING: 19 APRIL 2017: ANNEXURE A INDEX

Pages I. APPLICATIONS FOR LEAVE OF ABSENCE ……………………….. 3 II. APPROVAL OF THE MINUTES OF THE MAYORAL

COMMITTEE MEETING: 20 MARCH 2017 ……………………..…… 3 III. MATTERS CONSIDERED 1. Economic Development and Spatial Planning Department

Feedback report on participation by the Tshwane Convention and Visitor Bureau in the 2016 West Africa Roadshow that took place in Nigeria from 9 to 20 August 2016 …….……………….. 4-11

2. Economic Development and Spatial Planning Department

Feedback report for participating in the China Incentive Business Travel and Meetings (IBTM China) Trade Show and Exhibition in Beijing, China, from 7 to 8 September 2016 …….…… 12-19

3. City Strategy and Organisational Performance Department

Process plan for the tabling of the Consolidated Annual Report for the City of Tshwane: financial year 2016/17 (From the Executive Committee: 11 April 2017) …………….……. 20-35

4. Group Financial Services Department

Progress report on the general valuation process to give effect to the City’s 2017-Valuation Roll (From the Executive Committee: 5 April 2017) …………………… 36-41

5. Group Financial Services Department

Capital Budget Progress as at 31 March 2017 ………………………. 42-47 6. Emergency Management Services Department Feedback report requested from the Section 79 Oversight Committee on Community Safety towards the status of the emergency services fleet within the City of Tshwane

(From the Executive Committee: 5 April 2017) …………………... 48-57 7. Utility Services Department

Acquisition of additional servitude land over Erf 29552 for the construction of the 132kV power line between Hatherley and Mamelodi 2 132/11kV primary substations (From the Executive Committee: 5 April 2017) …………………… 58-62

8. Community and Social Development Services Department

Greening of Sport Fields Programme progress and expenditure for the period from 2015/16 to 2016/17 (From the Executive Committee: 5 April 2017) …………………… 63-70

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A. MAYORAL COMMITTEE MEETING: 19 APRIL 2017: ANNEXURE A I. APPLICATIONS FOR LEAVE OF ABSENCE RESOLVED:

That the following applications for leave of absence be ACCEPTED:

• Member of the Mayoral Committee: Housing and Human Settlement;

• Chief Executive Officer: Tshwane Economic Development Agency;

• Acting Chief Operations Officer;

• Chief of Police;

• Acting Group Head: Group Communication and Marketing;

• Acting Group Head: Regional Operations and Coordination;

• Acting Group Head: Utility Services; and

• Executive Director: Budget Office. II. APPROVAL OF THE MINUTES OF THE MAYORAL COMMITTEE MEETING:

20 MARCH 2017 RESOLVED: That the minutes of the Mayoral Committee of 20 March 2017 be approved and

confirmed.

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A. MAYORAL COMMITTEE MEETING: 19 APRIL 2017: ANNEXURE A III. MATTERS CONSIDERED Reference No 81591/1 Makgorometje Makgata (0940) MAYORAL COMMITTEE: 19 April 2017 1. ECONOMIC DEVELOPMENT AND SPATIAL PLANNING DEPARTMENT

FEEDBACK REPORT ON PARTICIPATION BY THE TSHWANE CONVENTION AND VISITOR BUREAU IN THE 2016 WEST AFRICA ROAD-SHOW THAT TOOK PLACE IN NIGERIA FROM 9 TO 20 AUGUST 2016

1. PURPOSE The purpose of the report is to give feedback on the Tshwane Convention and Visitor Bureau (TCVB) participation in South African Tourism’s West Africa Roadshow which took place from 9 to 20 August 2016 in Nigeria.

2. STRATEGIC OBJECTIVES

• Strategic Objective 2: Accelerating higher and shared economic growth and development

o KPA 2.4: Optimising city-wide tourism opportunities related to Tshwane’s

culture, business and capital city status o KPA 2.5: Increasing participation in and broadening the city’s economy

through the development of small, medium and micro enterprises (SMMEs), cooperatives, the informal sector and the role of black people, women and the youth

• Strategic Objective 5:

a. KPA 5.1: Promote sound governance practices. b. KPI 5(a): Initiate communication and marketing campaigns to enhance the

City’s image

3. BACKGROUND OBJECTIVES OF PARTICIPATING AT THE WEST AFRICA ROADSHOW 2016

• To position the City of Tshwane as a preferred destination for leisure tourism in the Nigerian market in order to increase the number of tourist arrivals to Tshwane.

• To introduce Tshwane to the Nigerian market (media, trade representatives and consumers) as an accessible, cost-effective and enriching destination that offers more than just being the capital city.

• To initiate and conclude joint marketing agreements with outbound and inbound tour operators, travel media and key travel influencers.

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• To communicate new and future developments in Tshwane in order to stimulate tourism and investment opportunities.

4. DISCUSSION

The West Africa Roadshow is one of the must-attend annual trade-targeting marketing platforms organised by South African Tourism through its international offices. South African Tourism organises the annual roadshow to West Africa, targeting key outbound travel trade in the main cities of Nigeria and Ghana. These countries respectively, are the leading source markets in terms of tourist arrivals to South Africa from West Africa. The roadshow consists of a series of focused, business-to-business travel trade workshops in major cities that allow South African suppliers and destination management companies to showcase their products to pre-qualified outbound travel agents and top tour operators in the various Nigerian main cities, who are already selling or are interested in selling South Africa as a tourism destination. The TCVB participated only in the Nigeria leg of the roadshow, which took place in Lagos, Port Harcourt and Abuja from 15 – 19 August. The key activities were as follows:

• To meet and discuss business opportunities with the travel trade.

• To generate opportunities for business tourism events.

• Create brand awareness through media interviews supported by press releases.

• To educate and inform via social media communication/support. It is central to the Tshwane Convention and Visitor Bureau’s (TCVB) Destination Marketing strategy to use digital marketing tools as far as possible to support current trends in tourism marketing as well as the City’s green initiative. Therefore digital and downloadable marketing material were used, i.e. a travel app, PowerPoint presentation and video. The roadshow itinerary was as follows:

Day Activity City Comment Day 1 Sunday 14 August

• Transfer to Airport • Fly from Accra to Lagos

• Transfer from airport to Hotel

Overnight Federal Palace Hotel, Lagos

Lagos

Group shuttle / International and Domestic flight

Day 2: Monday 15 August

SAT Workshop

Overnight: Federal Palace Hotel, Lagos

Lagos

Day 3: Tuesday 16 August

• Transfer to Airport

• Fly from Lagos to Port Harcourt

• Transfer from airport to Hotel

Overnight Le Meridian Ogeyi Hotel, Port Harcourt

Port Harcourt

Group shuttle / Domestic flight

Day 4: Wednesday 17 August

SAT Workshop

Overnight Le Meridian Ogeyi Hotel, Port Harcourt

Port Harcourt

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Day 5: Thursday 18 August


• Fly from Port Harcourt to Abuja • Transfer from airport to Hotel

Overnight Transcorp Hilton Hotel Abuja

Abuja

Group shuttle / Domestic flight

Day 6: Friday 19 August

SAT Workshop

Overnight Transcorp Hilton Hotel Abuja

Abuja

Day 7: Saturday 20 August


• Fly from Abuja to JHB

South Africa Group shuttle

ENGAGEMENTS DURING THE WORKSHOPS The main deliverable of the City’s overall participation was to make presentations to educate travel trade representatives and to secure joint marketing agreements in order to increase destination awareness and tourist arrivals. In terms of business meetings, a total of 132 travel trade companies were reached during the presentations and meetings across Lagos, Port Harcourt and Abuja. While the discussions were extensive, the following table summarises only highlights of some of the trade meetings conducted by the Tshwane Convention and Visitor Bureau (TCVB) during the workshops:

Company

City of Tshwane representative

Discussion of the meeting

1. Utopia Media (Mr. Akintunde Marinho)

Hulisani Thabela

Utopia Media is SA Tourism’s appointed digital media company for West Africa. TCVB would like to enter a media and promotional partnership in order to create a promotional campaign targeting trade and media through digital channels and social media. Utopia to send a proposal to TCVB.

2. Zigona Travel (Ms Ngozi Ngoka)

Hulisani Thabela

Zigona Travel is one of the leading tour operators in Nigeria, the owner, Ms Ngozi Ngoka, was Lady Captain at the Ikoyi Club until February 2016, and is currently the Financial Secretary for the National Association of Nigeria Travel Agents’ (NANTA). TCVB would like to enter in to a partnership with Zigona Travel to create focused golf promotions/activations aligned to Nigeria’s key golf tournaments, with the aim of promotion Tshwane Open and also creating golf packages for the Nigerian market. Zigona Travel will send a golf promotion proposal in early September 2016.

3. Krestar Travels & Tours (Mr. Feson Fada)

Hulisani Thabela

Krestar Travels & Tours already sends clients to SA and to Tshwane, and they have a satellite office in Pretoria. TCVB will be hosting the owner in order to diversify the operator’s product offering of Tshwane in order to help them create more attractive packages focusing on Tshwane.

4. WakaNow Travel Company

Hulisani Thabela

WakaNow is Nigeria’s first and most prolific online travel agency. There is an opportunity for TCVB introduce its tourism products (accommodation and tours) into the online database, thereby extending the reach and exposure of our tourism offering in the market.

The key outcomes from engagements during the workshops with trade representatives and the media are the following:

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• Tshwane enjoys high levels of awareness amongst the Nigerian because of the large Nigerian community that already lives there and the academic institutions. Therefore the main aim in our marketing will be to promote other products that interest the market to improve spend and length of stay. Such products include the Dinokeng Game Reserve and Cullinan Diamond Mine and village.

• There is much confusion about the renaming of Tshwane as opposed to Pretoria, and therefore there is much work to be done to re-educate them about Tshwane and the transition from Pretoria.

• It is a priority to promote Tshwane Open to the Nigerian market because golf is a major sport within the business circles and affluent parts of the Nigerian consumer market.

In order to create excitement for Tshwane, Tshwane Convention and Visitor Bureau (TCVB) also gave away prizes (comprising of travel packages of accommodation, tours/activities and transfers) which were won by some media and travel agents in the various cities during the workshop. These prizes were sponsored courtesy of our industry partners in Tshwane who are interested in doing business with the West African market.

4.1 STRATEGIC MEETINGS DURING THE ROADSHOW Parallel to the trade workshops that were taking place, the Tshwane Convention and Visitor Bureau (TCVB) also conducted strategic meetings with the intention to enhance strategic relations within Nigeria.

Company

City of Tshwane representative

Discussion of the meeting

1. South African Airways Nigeria

Neliswa Nkani/ Lihle Mabaso

A verbal agreement was reached that SAA would at times sponsor CoT with flight tickets and discount business class tickets for delegates coming to key strategic events such as Tshwane Open, Women in Tourism Conference and media hosting. Furthermore SAA is very keen in being an official Africa Aviation partner for the World Choir Games 2018 and offer special 2018 World Choir Games rated for Nigerian Choirs.

Outcome: during the roadshow, SAA sponsored two prizes: one for media and the other for a tour operator as part of promoting Destination Tshwane. South African Tourism topped up this by an additional ticket for the winners. Tshwane will host the winners upon their arrival in the city as part of destination immersion.

SAA has agreed to flight Tshwane destination content on their Inflight Entertainment channels at a cost to be finalized upon the approval of TCVB’s destination marketing media report.

2. Nigeria PGA


The official Nigerian Golf association; to enhance destination Tshwane amongst Nigerian golfing communities as a preferred golfing destination.

Outcome: PGA to bring a delegation of Golfers to Tshwane to immerse their members in Tshwane and combine the offering with an element of business networking.

Nigeria PGA will assist with delegate boosting for Tshwane Open as

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well as for Golfing holidays for their members. Tshwane will engage with SAA to promote special packages with Nexus.318 to create golfing holiday tours and hosting.

3. Abuja Chamber of Commerce


Focus was on the chamber opening a branch in Tshwane to enhance business relations between the two cities.

Tshwane to be considered as a preferred business destination as well as a meetings destination for their corporate meetings, incentives and board meetings.

The Abuja Chamber of Commerce Secretary General will send CoT (via TEDA) a proposed letter of co-operation that defines opportunities for a twinning agreement.

4 Permanent Secretary of Nigerian Tourism


This meeting was a great success. The Permanent Secretary is the second most senior office after the Minister of Tourism of Nigeria. The purpose of the meeting was for delegate boosting for the Women in Tourism Conference, whereby the Ministry would attend the conference in Tshwane with key strategic women in Nigerian tourism, and also to launch the Nigerian Women in Tourism chapter in Tshwane.

TCVB was requested to consider an MOU with Abuja Tourism local government to enhance relations between the two agencies to increase travel between the two capital cities.

Outcome: The city of Tshwane will facilitate SAA discounted business class tickets for the Nigerian delegation coming attend the Women in Tourism conference; a meeting of the Nigerian Ministry of Tourism with key senior Tshwane officials SA Ministry of Tourism. CoT will be sending out official invitation to the Nigerian Ministry of Tourism as per engagement.

5 Institute of Hospitality, UK


This meeting facilitated key opportunities for Tshwane hospitality students. This institution is interested in forming the Tshwane Nigeria Institute of Hospitality where hospitality students can exchange Internship opportunities between Pretoria, Lagos and Abuja.

Outcome; The institution will be visiting Tshwane in October 2016 to attend the Women in Tourism Conference and to further engage with CoT together with key tourism stakeholders.

6 Nigerian Investment Agency


The Nigerian Investment Agency is very keen to enhance trade and investment relations with South Africa in particular Tshwane as a strategic destination. They are very open to establishing the Nigerian Tshwane Investment Forum with an option of having offices in Tshwane. Furthermore they were interested in knowing what investment opportunities are available in Tshwane, and they expressed interest in entering into a twinning agreement with the city to ensure mutual beneficiation.

Outcome: Destination Marketing together with the office of the DCM to brief TEDA and Economic Development to facilitate further engagements with Nigerian Investment Agency.

7 Nexus. 318


Nexus. 318 was instrumental in facilitating all the strategic meetings within Nigeria on behalf of the City of Tshwane. Nexus was also responsible for bringing the City of Tshwane key Nigerian hospitality business Investor and golfers during Tshwane Open. Outcome: Nexus will continue to facilitate the enhancement of potential investor relations between the City of Tshwane and Nigeria, and CoT

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through Nexus will continue to assist in building relationships with Nigerian businesses and promote the destination within the golfing fraternity.

5. COMMENTS OF THE STAKEHOLDER DEPARTMENTS 5.1 COMMENTS OF THE CHIEF FINANCIAL OFFICER

Cognisance is taken of the contents of the report. There are no financial implications emanating as a result of this report for the City of Tshwane as the purpose of the report is to to give feedback on the Tshwane Convention and Visitor Bureau (TCVB) participation in South African Tourism’s West African Roadshow which took place from 9 – 20 August 2016 in Nigeria. The Group Financial Services Department will render further financial comments on future reports in this regard.

5.2 COMMENTS OF THE GROUP HEAD: GROUP LEGAL AND SECRETARIAT

SERVICES The purpose of this report is to give feedback on the Tshwane Convention and Visitor Bureau (TCVB) participation in South African Tourism’s West Africa Roadshow which took place from 9 – 20 August 2016 in Nigeria. Note is taken of the contents and annexures of this feedback report for purposes of these comments. It transpires from the report that the main objective of the CoT’s participation on international trade and marketing platforms is to create and enhance destination awareness and to build important trade/media partnerships. The City of Tshwane’s participation in the West African Roadshow 2016 is in line with its objectives as stated in the report. The purpose of the participation complies with the City of Tshwane’s legislative obligation to promote and undertake development in the municipality and to use the resources of the municipality in the best interests of the local community as envisaged in sections 4(2)(a) and (g) of the Municipal Systems Act, 32 of 2000. In view of the above cognisance may be taken of the report as recommended and the recommendations are supported.

6. IMPLICATIONS 6.1 HUMAN RESOURCES The following officials participated and represented the City of Tshwane:

• Director: Trade Marketing – role was to conduct presentations and meetings and trade marketing activities.

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• Director: Destination Marketing – role was to organize engagements with media and the South African embassy, identify key stakeholder to become ambassadors for the City of Tshwane and use the opportunity to also do delegate boosting for WCG 2018. Additionally to sell Tshwane Open to this market to relevant stakeholders.

• Director: Performance Monitoring and Reporting- whose role was to represent the Office of the Deputy City Manager: Strategy Development and Implementation, supporting the team in strategic engagements and assisting in marketing and media activities.

6.2 FINANCES

The total budget spent on the West Africa 2016 Roadshow was R254,447.42 and the itemised breakdown is tabled below:

EXPENDITURE BREAKDOWN FOR WEST AFRICA 2016 ROADSHOW

Item Description

Subtotal

Participation fees

R 0.00

Subsistence allowances

R 56,360.73

Flights

R 60,390.69

Accommodation

R 111,700.00

Transfers/Local transport

R 24,346.00

Service fees

R 1,650.00

GRAND TOTAL

R 254,447.42

6.3 CONSTITUTIONAL AND LEGAL FACTORS

None.

6.4 COMMUNICATION

None.

6.5 PREVIOUS COUNCIL OR MAYORAL COMMITTEE RESOLUTIONS

Tshwane Convention and Visitors Bureau Strategy that was approved in June 2016.

7. CONCLUSION

The main objective of the City of Tshwane’s participation in international trade marketing platforms is to create and enhance destination awareness, to build important trade and media partnerships, and to increase tourist arrivals in Tshwane. During the West Africa Roadshow 2016, the City of Tshwane’s participation included a core exhibition table, focused and targeted meetings with representatives of the travel trade, media and strategic stakeholders and potential partners. All these activities were aimed at implementing tourism marketing initiatives that will promote Tshwane as a preferable destination for leisure and business tourism.

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Nigeria is a very strategic market for South Africa and it has great tourism, trade and investment opportunities for the City of Tshwane. Further, continued investment, sustained engagements as well as nurturing such strategic relations will be pivotal if we are to yield any tangible outcomes. Overall, considering that it was our first-time appearance in this market, these combined marketing efforts at the West Africa Roadshow 2016 were successful.

IT WAS RECOMMENDED (TO THE MAYORAL COMMITTEE: 19 APRIL 2017): 1. That cognisance is taken of the content of this feedback report for South African

Tourism’s West Africa Road show 2016; 2. That increased investment be considered for marketing activations in future budgets

in order to build on and continuously maintain the City’s current work in priority international markets as submitted in the Tshwane Convention and Visitor Bureau (TCVB) 2016/17 travel plan; and

3. That the International Relations in the Office of the Executive Mayor work with the

Tshwane Convention and Visitor Bureau (TCVB) in order to enhance tourism marketing efforts through diplomatic channels and South African embassies abroad.

RESOLVED: 1. That recommendation two be removed; 2. That cognisance is taken of the content of the feedback report for South African

Tourism’s West Africa Roadshow 2016; 3. That the International Relations in the Office of the Executive Mayor work with the

Tshwane Convention and Visitor Bureau (TCVB) in order to enhance tourism marketing efforts through diplomatic channels and South African embassies abroad;

4. That the Executive Director: Tshwane Convention and Visitor Bureau (TCVB)

develops a Tourism Strategy for the Capital City in consultation with relevant internal stakeholders;

5.1 That a report on the Tourism Strategy that includes a reporting template for reports

emanating from the Tshwane Convention and Visitor Bureau (TCVB) be submitted to the Mayoral Committee meeting scheduled for 17 May 2017; and

5.2 That the reporting template of the Tshwane Convention and Visitor Bureau (TCVB)

include among others:

• proposed interventions to be implemented locally to promote tourism within the City; and

• that meetings/sessions attended by the Tshwane Convention and Visitor Bureau (TCVB) be briefly summarised.

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Reference No 79274/1 Makgorometje Makgata (0940) MAYORAL COMMITTEE: 19 April 2017 2. ECONOMIC DEVELOPMENT AND SPATIAL PLANNING DEPARTMENT

FEEDBACK REPORT FOR PARTICIPATING IN THE CHINA INCENTIVE BUSINESS TRAVEL AND MEETINGS (IBTM CHINA) TRADE SHOW AND EXHIBITION IN BEIJING, CHINA, FROM 7 TO 8 SEPTEMBER 2016

1. PURPOSE The purpose of the report is to provide feedback on the Tshwane Convention and Visitors Bureau's participation at the 2016 China Incentive Business Travel and Meetings (IBTM China) Trade Show and Exhibition, which took place between 7 and 8 September 2016 in Beijing, China.


• Strategic Objective 2: Accelerating higher and shared economic growth and development

• KPA 2.4: Optimising citywide tourism opportunities related to Tshwane's culture, business and capital city status

• The tradeshow forms part of the Convention Bureau’s business plan. It talks to KPI ‘number of marketing platforms participated in’, under the key performance area of Destination Profiling and Showcasing

3. BACKGROUND

The IBTM China Trade Show (www.cibtm.com) was established 11 years ago to provide unrivalled opportunities for international suppliers to build leads and generate business from China. In 2016 the show was renamed IBTM China to ensure the participation of more quality buyers from the Asian market.

The event gathers over 5,000 meetings industry professionals from around the world.

Exhibitors include: international venues, hotels, destinations, technology, business travel and events services providers.

IBTM China attracts also buyers, event planners and all those involved in the decision making process for meetings, events, conferences, incentives, as well as those involved in booking and buying business travel/group travel.

The Tshwane Convention and Visitors Bureau participated in the show as part of the Bureau’s strategy to participate in local and international marketing platforms to market Tshwane as a destination of choice for the MICE industry, to draw business tourism to the city.

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Asia is a market strong in Corporate Meetings and Incentive Rewards, and Tshwane has unique products and experiences to offer this market.

As the home of research, it has great appeal for corporations looking at new innovations.

After participating in two previous shows, South African Tourism had again invited the Tshwane Convention and Visitors Bureau to participate in the 2016 show.

The benefits for Tshwane's participation were that products like the Dinokeng Game Reserve (a unique offering that only the City of Tshwane possesses in South Africa), drew a lot of interest at the previous shows, and the game reserve has experience a growth of enquiries about their offerings and bookings have increased.

The other benefit was the Voortrekker Monument being Tshwane’s most visited attraction, and Chinese visitor numbers being a huge part of this, to the extent that the monument has started offering its brochure materials in Mandarin.

4. DISCUSSION IMPORTANCE OF THE CHINESE MARKET Growth in South Africa's tourism arrivals from China boomed in 2012, increasing by 63,5% between January and September and making China the country's fourth-biggest overseas tourist market. During that year over 96 000 Chinese tourists were recorded to have visited South Africa between January and September, up from the 59 187 who visited over the same period the previous year. The National Department of Tourism and South African Tourism note that "China is now one of South Africa's most important and valued partners for tourist arrivals and a market the South African government is committed to investing strongly in". The Tshwane Convention & Visitors Bureau wants to capitalise on this potential, hence participating at the IBTM China platform. OBJECTIVES OF PARTICIPATING IN IBTM CHINA, 2016 1. To entrench Tshwane’s position as a MICE (meetings, incentives, conferences

and events) destination, thereby increasing the number of meetings and incentive events and programmes from the Asian region that Tshwane can attract;

2. To showcase Tshwane’s business tourism offerings to Asia’s leading industry buyers and sellers, thereby increasing the city's competitive advantage;

3. To generate new business leads, thereby increasing the conversion rate of business tourism travel in the city and ultimately contribute towards Tshwane’s GDP. Leads are generated via holding meetings with meeting planners and buyers at the tradeshow, managed via the trade show’s 1 to 1 appointment diary system. Buyers and the City request meetings with potential clients and during the meeting opportunities to bring business events to the city are explored and discussed.

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4. To continue to create brand awareness and entrench Tshwane’s brand globally and amongst tourism industry stakeholders so as to enhance the city’s image;

5. To source opportunities for new joint marketing agreements with inbound tour operators and airlines and

6. To communicate new and future developments in the city in order to stimulate tourism and investor confidence, for example, the Tshwane International Convention Centre and opportunities for tourism infrastructure investment around it (hotels).

7. IBTM China also hosts several exclusive networking events, gain practical insights and fresh perspectives, improve professional knowledge and learn about up-to-date market trends. The show’s Knowledge Programme (attached) ensures that participants have plenty of opportunities to enhance their industry knowledge, whilst connecting with other like-minded professionals.

IBTM CHINA 2016 TRADESHOW AND ACTIVITIES The Tshwane Convention and Visitors Bureau sent out a total 40 Meeting requests during the pre-selection process and a total of 20 were direct-requested meetings from the buyers. The buyers represent hosted buyer’s attending IBTM China 2016. Out of a total of 60 meetings requested the Convention and Visitor’s Bureau had 15 confirmations. The IBTM China Trade show generated a total number of 33 meetings for the Tshwane Convention and Visitors Bureau. The below table indicates all the meetings the Convention Bureau had at the stand, these having been captured, escalated and currently being pursued according to their cold or hot lead status:

No. Organizational Name

Name of Representative

1 Shine Tours / GSM management

Echo

2 Leo Resources Global Enterprise

Mona Malik

3 China Aerospace Science & Industry Corp

Zhou Ling

4 Shanghai Oriet Peace International Travel Services Liu Xinbo

5 Sun International

Mark Wang

6 Hope Journey Beijing

Alina

7 Magenta Global Pte Ltd

Maggie Tan

8 U-MICE

Tommy Lee

9 APATAS- Asia Pacific Association of Technology and Society

Dr Laurie Lau

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10 CTS MICE Services Sally Ye

11 CTS MICE Services

Jean Jin

12 China Landscape International Travel Service

Yao Lichun

13 Greater China Experts & Enterprisers Union

Xiaofen Ji

14 Touristtube

Fred Kassir

15 Beijing Fortune International Trade Co.

Lily Zhuang

16 BIT Congress Inc

Jason Wang

17 New Start Tours

Michael

18 HRG Jin Jiang China

Siven You

19 Vinux Trip

Sam

20 ADFIAP**

Carmelita Chavez

21 Panorama Tours

Dennis Putra

22 Travel & Tourism News Middle East

Rashi Sen

23 Uthing

Geyong

24 Sun International

Marna van Blerk

25 China International Health & Medical Tourism Association

Jia Xiao FANG

26 China International Forest Travel

Louie Niu

27 Tsogo Sun

Steven Jin

28 Signature By Anne Candy

Anne Candy

29 Joy My Tour

Teresa Qian

30 Hainan Happytour International Travel Service Co Jeniffer

31 Ivy Alliance Tourism Consulting

David Tang

32 City of Johannesburg

Sello Ditsoabare

33 Brand South Africa

Tebogo Lefifi

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Cognisance is taken of the contents of the report. There are no financial implications emanating as a result of this report for the City of Tshwane as the purpose of the report is to provide feedback on the Tshwane Convention & Visitors Bureau's participation at the 2016 China Incentive Business Travel and Meetings (IBTM China) Trade Show and Exhibition, which took place between the 7 and 8 September 2016 in Beijing, China. The Group Financial Services Department will render further financial comments on future reports regarding to the future participation of the City of Tshwane at the IBTM China Trade Show.


SERVICES The purpose of this report is to provide feedback on the Tshwane Convention & Visitors Bureau's participation at the 2016 China Incentive Business Travel and Meetings (IBTM China) Trade Show and Exhibition, which took place between the 7 and 8 September 2016 in Beijing, China. The provisions of section 153 of the Constitution of the Republic of South Africa stipulates that a municipality must structure and manage its administration and budgeting and planning process to give priority to the needs of the local community, and to promote the social and economic development of the community. Having regards to the aforesaid, and with specific reference to the contents of the report, we advise that the report complies with supra mentioned provision of the legislation, and that Group Legal Services supports the recommendations thereof.

6. IMPLICATIONS 6.1 HUMAN RESOURCES

It was approved that the Director: Visitor Services, Sibulele Mbalo and Deputy Director: Incentive, Government and Corporate Meeting Services, Nonhlanhla Tshabalala attend the Tradeshow. The Deputy Director: Incentive, Government and Corporate Meeting was responsible for the overall coordination of the trade show, scheduling and managing the meetings diary, attending meetings with buyers and organising all other activations coupled with the show. The Director: Visitor Services was responsible for take appointments concurrently, as well as handle interviews and strategic side/parallel events related to the show that had the potential to benefit Tshwane.

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6.2 FINANCES

Activity

Estimated cost

Participation fees R 25 000.00

Flights R 85 000.00

Accommodation R 30 000.00

Car transfers and reimbursements R 18 000.00

TOTAL R158 000.00


None.

6.4 COMMUNICATION

None.


None.

7. CONCLUSION

China is a strong market for South Africa, mostly for the Gauteng Province. The Chinese are slowly developing an interest in and favouring the Capital City. The City of Tshwane had an opportunity to have meetings and interact with different incentive and conference planners in Asia, specifically China with interest on bringing their next group to South Africa; therefore the Tshwane Convention Bureau was able to convince some on why Tshwane is also a suitable destination for their incentive groups. International marketing platforms help create awareness about our destination and its offering. Meetings and Incentives business have long lead times ranging between three and five years, hence the importance of constantly engaging in such platforms to promote new and other venues that will complement the TICC as well as the City of Tshwane as a preferred global leisure and business tourism destination. IBTM China was important in generating important leads that the convention bureau is following up on and converting. It is thus important for the City of Tshwane to continue to participate at the IBTM China Trade Show, as it is a good show to generate convertible business leads.

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IT WAS RECOMMENDED (TO THE MAYORAL COMMITTEE: 19 APRIL 2017): 1. That the feedback report on the Tshwane Convention and Visitors Bureau's

participation at the 2016 China Incentive Business Travel and Meetings (IBTM China) Trade Show and Exhibition be noted; and

2. That Tshwane's continued participation at this Trade Show and Exhibition be

considered, for the following reasons:

• China is a strong market for South Africa, mostly for the Gauteng Province. The Chinese are slowly developing an interest in and favouring the Capital City, Tshwane;

• The City of Tshwane had an opportunity to have meetings and interact with

different incentive and conference planners in Asia, specifically China with interest on bringing their next group to South Africa; therefore the Tshwane Convention and Visitors Bureau was able to convince some on why Tshwane is also a suitable destination for their incentive groups; and

• The 2016 China Incentive Business Travel and Meetings (IBTM China) is

important in generating important leads, and the Convention and Visitors Bureau is currently following up on and converting the ones generated from the 2016 show.

RESOLVED: 1. That the feedback report on the Tshwane Convention and Visitors Bureau's

participation at the 2016 China Incentive Business Travel and Meetings (IBTM China) Trade Show and Exhibition be noted;

2. That Tshwane's continued participation at this Trade Show and Exhibition be

considered, for the following reasons:

• China is a strong market for South Africa, mostly for the Gauteng Province. The Chinese are slowly developing an interest in and favouring the Capital City, Tshwane;

• The City of Tshwane had an opportunity to have meetings and interact with

different incentive and conference planners in Asia, specifically China with interest on bringing their next group to South Africa; therefore the Tshwane Convention and Visitors Bureau was able to convince some on why Tshwane is also a suitable destination for their incentive groups; and

• The 2016 China Incentive Business Travel and Meetings (IBTM China) is

important in generating important leads, and the Convention and Visitors Bureau is currently following up on and converting the ones generated from the 2016 show.

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3. That the Executive Director: Tshwane Convention and Visitor Bureau (TCVB) submits a report on the amount of conversions achieved by virtue of the leads generated by the continued participation of the City at international tourism events to the Mayoral Committee meeting scheduled for 17 May 2017; and

4. That the Group Legal and Secretariat Services stakeholder department comments

be amended by removing the erroneous reference to performance management.

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Reference No 98939/1[AR/1617/1] Anisha Dharumrajh (1673) MAYORAL COMMITTEE: 19 April 2017 3. CITY STRATEGY AND ORGANISATIONAL PERFORMANCE DEPARTMENT

PROCESS PLAN FOR THE TABLING OF THE CONSOLIDATED ANNUAL REPORT FOR THE CITY OF TSHWANE: FINANCIAL YEAR 2016/17 (From the Executive Committee: 11 April 2017)

1. PURPOSE The purpose of the report is to seek approval of a process plan for the tabling of the 2016/17 Financial Year Annual Report that must be strictly adhered to by all departments and municipal entities.

2. STRATEGIC OBJECTIVES The IDP of 2016/17 does not have objectives. However, this report complies with the outcome 5 of the IDP 2016-2021:- An African Capital City that promotes excellence and innovative government solutions

3. BACKGROUND

The 2015/16 Annual Report, which will be compiled in terms of the Municipal Finance Management Act, 56 of 2003 (MFMA) and the Municipal Systems Act, 32 of 2000, (MSA) (as amended) shall reflect on the performance of the City of Tshwane for the period 1 July 2016 to 30 June 2017.

3.1 LEGISLATIVE REQUIREMENTS OF THE ANNUAL REPORT THE MFMA In terms of section 121(1) of the MFMA, every municipality and municipal entity must prepare an Annual Report for each financial year. The purpose of an Annual Report, in accordance to section 121(2), is to provide a record of activities, report on performance against the budget and promote accountability to the local community for the decisions made throughout the year by the municipality or municipal entity. The contents of the Annual Report FY 2016/17 will be instructed by legislated requirements of the MFMA and MSA, guided by MFMA Circular 63 of the National Treasury take into consideration the directive issued by the Auditor General on the Public Audit Act of December 2016.

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Table 1: Requirements of the MFMA pertaining to the annual report

Section of MFMA Requirement Legislative Provision 121(1)

It is compulsory for a municipality and for municipal entities to compile annual reports.

The council must within 9 months after the end of a financial year deal with the annual report of the municipality and of any municipal entity in accordance with section 129.

121(3)(a)

Consolidated Annual financial statements of the municipality, and Municipal Entities

Annual financial statements of the municipality, to be prepared in terms of section 122, 123, 134 and 125. If section 122(2) applies, consolidated annual financial statements, as submitted to the Auditor General for audit in terms of section126(1)- preparation of financial statements is specified in section 122

121(3)(b) Auditor-General’s audit report Auditor-General’s audit report in terms of section 126(3) on the financial statements.

121(3)(c) Annual performance report Annual performance report of the municipality prepared by the municipality in terms of section 46 of the Municipal Systems Act.

121(3)(d) Auditor-General’s audit report Auditor-General’s audit report in terms of section 45(b) of the Municipal Systems Act

121(3)(e) Accounting officer’s assessment on arrears

Assessment by the municipality’s accounting officer of any arrears on municipal taxes and service charges.

121(3)(f) Accounting officer’s assessment of performance on each vote of the budget

Assessment by the municipality’s accounting officer of the municipality’s performance against the measurable performance objectives referred to in section 17(3) (b) for each vote in the municipality’s approved budget for the relevant financial year.

121(3)(g) Provide corrective actions to matters raised by the AG on the audit report.

Particulars of any corrective action taken or to be taken in response to issues raised in the audit reports referred to in paragraphs (b) and (d).

121(3)(h)

Provide explanations to clarify financial statements.

Explanations that may be necessary to clarify issues in connection with the financial statements- sections 124 and 125 state that the notes to the annual financial statements must include disclosures concerning councillors, directors and officials, and other compulsory disclosures respectively.

121(3)(i) Other information Information as determined by the municipality 121(3)j Include audit and performance

Committee recommendations. Recommendations of the municipality’s audit committee

121(3)(k) Other prescribed information Other information as may be prescribed. 127(1) The municipal entity should

provide an annual report to the parent municipality.

The accounting officer of the municipal entity must within 6 months of the end of a financial year, or on such earlier date as may be agreed between the entity and its parent municipality submit the annual report for the entity to the municipal manager of the parent municipality

127(2)

The mayor should table the annual report at Council.

The mayor must within 7 months of the end of a financial year table in the Council the annual report of the municipality and of any entity under the municipality’s control.

127(5)

Seek public comments on the annual report

Immediately after the annual report is tabled in council the accounting officer of the municipality must in accordance with section 21A of the MSA make public the annual report and invite the local community to submit representations in connection with the annual report, and

Submit the annual report to the AG, the relevant provincial treasury and the provincial department responsible for local government in the province

128(a)-(c)

Ensure compliance of entities to section 121 and 126

The accounting officer of the parent municipality must monitor the entities compliance to sections 121 and section 126 of MFMA, establish reasons for non-compliance and report noncompliance with supporting reasons to the council, provincial treasury and the AG.

129(1)

Adopt an oversight report

Council should consider the annual report of the parent municipality and of the entities within two months from the date of tabling the annual report in Council in terms of section 127. Council should adopt an oversight report that includes council’s comments on the annual report. The statement must indicate whether council has approved the annual report with/without reservations, has rejected the annual report or has referred the annual report back for revision of those components that can be revise

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129(2)

Submit copies of the annual report to stakeholders

The accounting officer must attend council and respond to questions concerning the annual report. Must submit copies of the minutes of the meetings of council to the AG, the provincial treasury and the provincial department responsible for Local Government.

In terms of section 21A of the MSA make public an oversight report referred to in (1) within 7 days of its adoption.

130(1)- (3)

Ensure access to the council meetings on the annual report

The council meetings at which the annual report is to be tabled, or decisions taken should be open to the public, and other organs of state. Time must be allowed for discussion of written submissions received from the local community or organs of state on the annual report, for members of the community of any organs of state to address the council.

Representatives of the AG are entitled to attend and to speak at such council meetings.

131(1)- (2)

Address issues raised by AG in the audit report.

The mayor of the municipality must ensure that issues raised by the AG in the audit report are addressed. In terms of section 2, the MEC for local government must assess the financial statements of the municipalities and responses on the audit report, and determine whether the municipalities have adequately addressed the issues raised by the AG.

The MEC must report to the provincial legislature on any omissions by the municipality within 60 days.

132(1)- (5)

Submit the annual report to the provincial legislature

The accounting officer should submit the annual report of the municipality and the entities annual reports together with the oversight report to the provincial legislature within 7 days after council has adopted the oversight report.

THE MUNICIPAL SYSTEMS ACT The section below outlines the requirements of the annual report and the annual report process in terms of the Municipal Systems Act (MSA). Table 2: Requirements of the MSA pertaining to the annual report

Section of MSA

Requirement

Legislative Provision

21 A

Making public the annual report

Documents to be made public should be:

• Displayed at the municipality’s head office, satellite offices and at libraries.

• Displayed on the municipality’s public website • Conveyed to the community through notification (local

newspapers, radio broadcast. • Communities should be invited to make written

comments, and assisted to make written comments where required.

45(1)(a)- (b)

Auditing of performance results

The performance results must be audited both as part of the municipality’s internal auditing processes and annually by the AG.

46(1)-(2)

Preparation of the Annual performance reports

The municipality must prepare a performance report that reflects:

• The performance of the municipality and of each external service provider during that financial year

• A comparison of the performances with targets set for and performances in the previous financial year

• Measures taken to improve performance

The annual performance report must form part of the municipality’s annual report

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3.2 CIRCULARS AND GUIDELINES NATIONAL TREASURY MFMA CIRCULAR 63 Circular 63 of the National Treasury, describes the manner in which the Annual report of municipality must be adopted/formulated and the recommends contents thereof. The content proposals in this process plan have been based on the guidance of NT circular 63, however, the timelines have not been utilised, as the City has put in place its own timelines to respond to legislative requirements as well as Council and internal processes. However, MFMA Chapter 12, sections 129 (4) and (5) state: (4) The National Treasury may issue guidelines on-

• The manner in which municipal councils should consider annual reports and conduct public hearings; and

• The functioning and composition of any public accounts or oversight committees established by the council to assist it to consider an annual report.

(5) No guidelines issued in terms of subsection (4) are binding on a municipal council unless adopted by the council. The current circular 63 sets out recommended timelines for and contents of the annual report. The proposed timelines require the AG to make available the audit report by November and for the annual report to be tabled in Council between November and December. These timelines are very restrictive due to the current size of the City and the complexity of the audit process. In terms of the Public Audit Act, the AG has three months in which to audit, which according to the MFMA starts on 1 September. Therefore the audit processes for the city should be concluded by end of November. These three months are essential to the city to ensure that maximum use is made of the timeframes provided for in legislation to ensure a sound audit outcome, and to respond to the queries of the AG in a comprehensive manner. Further, council is in recess in December, and many people take festive holidays, therefore providing for public comments during the December month may not yield results.

The content recommendations of circular 63 are largely followed by the city. It is recommended that unless where the specific requirement no longer applies to the city, or has been overtaken by events where templates were changed by national government (such as reporting on the HR information), the circular be used to guide the contents of the annual report. However, it is advised that it is risky to abide by the timelines recommended by circular 63, as these cannot be achieved due to the city's processes. However, this process plan does recommend remaining within the legislated timelines as per the MFMA and the MSA.

3.3 THE PUBLIC AUDIT ACT OF 2004 AND AGSA DIRECTIVE DECEMBER 2016 The Public Audit Act of 2004 sets out annual report audit requirements as follows:

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1. Annual performance reports and all other information to be included in the annual report must be submitted concurrently with financial statements

2. Trial balance and general ledger that agree to the financial statements, together with supporting asset register, inventory register and subsidiary-ledgers for receivables and payables must be submitted together with the financial statements.

3. All documentation and information in support of the financial statements and performance report must be available on request.

4. Withdrawal and re-submission of financial statements and performance reports submitted for audit are not permitted; the financial statements and performance reports may only be adjusted for matters identified during the audit.

In addition the AGSA directive on the PAA, as at December 2016 (attached) indicates the following: 1. That the Framework for Managing of Programme Performance Information

(FMPPI) and circulars and guidance issued by the NT and the Department of Planning, Monitoring and Evaluation regarding planning, management, monitoring and reporting of performance against predetermined objectives will also be used by the AGSA when auditing the predetermined objectives.

2. The AGSA applies the following scoping criteria in selecting the subject matters (programmes / objectives / development priorities) for the audit: a. Subject matters that are a requirement of a law, regulation or sector

determination.

b. Subject matters that relate to the primary functions or purposes of the entity.

c. Subject matters that could be of significant national, community or public interest.

d. Subject matters that relate to outputs of significant importance to the public, such as those with an impact on public health, safety as well as social, economic or environmental well-being.

e. Any individual subject matter with a budgeted or actual expenditure or revenue amount constituting 30% or more of the total budgeted or actual expenditure or revenue amount.

4. DISCUSSION 4.1 LESSONS LEARNED 2015/16

4.1.1 CHALLENGES

During the 2015/16 financial year it was a requirement that all departments and entities complete and submit verified annual reports to Mayco. Numerous departments attempted to submit drafts to the CSOP department (previously CSPM). However, key challenges experienced were:

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• reports/inputs were not sufficiently quality assured and verified;

• despite in-year work with departments by CSOP incorrect listings were submitted in some cases, and had to be corrected before submission to the AG due to errors;

• many departments did not do the in-year reconciliation required, with the result that by the end of the fourth quarter, work was still being done on finalising audit files for the first three quarters of the year;

• findings were raised regarding the project files by the AGSA;

• key content and appendices to the annual report as guided by circular 63 were not completed and submitted by the relevant departments;

• projects information was poor;

• timelines were not met by numerous departments and the some entities; and

• guiding templates were not made adequate use of with the result that poor submissions were made in some cases.

4.1.2 POSITIVE LESSONS

The implementation of sound, detailed AOPO work processes and turn around plans, over three financial years, helped to create a repeatable process in many departments, with smoother audit experiences. The coordination with the AG by CSOP on the AOPO, helped to ensure that timelines were met, and that only correct information was submitted. The availability of the departments to respond to queries of the AG, and the management of feedback by senior management assisted to ensure that only relevant information was shared, and that departments took responsibility for their findings. The joint effort between CSOP, departments and Internal Audit enabled an unqualified audit result on the AOPO.

4.2 PROCESS TO BE FOLLOWED TOWARDS THE DEVELOPMENT OF THE ANNUAL REPORT 2016/17 The development and tabling of the annual report will take into consideration the following requirements:

• That the fourth quarter report to Council is an important input to the annual report. It should be based on final AOPO results for the first three quarters, and un-audited results for Q4.

• All departments and municipal entities should develop a full annual report on the basis of the circular 63 (not just the component that refers to their space). Therefore, the reports must respond to matters of administrative governance, financial management, human resources, and so on.

• Since in the past many departments made submissions and re-submissions with numerous errors and inaccuracies, it is required that a complete annual report of the department be reviewed, verified and confirmed by internal audit before submission to CSOP. This may for purposes of initial submission exclude the final AG results for FY 2016/17, however, must respond to the findings of FY 2015/16.

• The shareholder unit or department responsible for the entities ensure that all AOPO level 2 assurance work is done with regard to the entities.

• CSPM will only use final verified information, no room will be provided for corrections after receiving the approved reports.

• Material adjustments required as a result of the AG audit process must be addressed by all departments/entities before the annual reports of departments

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are submitted to MAYCO by departments, and before the entities annual reports are submitted to CSOP for inclusion in the annual report that is tabled to Council in January 2018.

• All departments have to make arrangements with internal audit to have their reports audited by internal audit, and to receive an audit/review report.

• Departmental ARs must serve at MMC EXCO before submission to CSOP. They must also be independently submitted by departments to the CM EXCO and Mayco once the audit is finalised.

• The audit file for AOPO must be finalised as per the timelines communicated by CSOP, in order to ensure AOPO audit readiness.

• The MPAC oversight report on the Annual Report and the AFS must be prepared and submitted to Council by the end of March as per Section 129(1) of the MFMA

4.3 YEAR END AND ANNUAL REPORT TIMELINES

The timelines for the year end have taken into consideration legislated requirements, internal governance and organisational processes, and all previous communications on performance reporting and AOPO readiness pertaining to quarterly reporting and in-year reconciliation. Therefore, the timelines are developed on the basis that departments and entities have complied with all processes to date, and are audit ready as required up to the end of quarter three by the end of June 2017. Therefore, the only reconciliation that should be outstanding in departments and entities by the end of June 2017 should be for quarter 4.

4.4 CONTENTS OF THE ANNUAL REPORT NT Circular 63 of the MFMA sets out certain guiding contents. The key contributors to the City's annual report are indicated along-side the content requirements, in the table below. However, the following must be noted:

• Templates are being developed and will be communicated to all departments regarding the annual reports required.

• The additional information required from departments will be communicated together with the templates.

• The templates will be communicated as soon as Mayco has approved the annual report process plan.

• However, all departments and entities are required to familiarise themselves with NT MFMA circular 63 requirements, as well as the AG directive December 2016, and any documents referred to in the directive of the AG. This directive was circulated to all acting heads of departments during March 2016.

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Table 3: Requirements of the NT MFMA circular 63 pertaining to the annual report:

Chapter Description of content to be included

Responsible stakeholder

Timeframe

A: Executive Mayor’s Foreword and Executive Summary

• Vision: A concise narration of where the city is going

• Key Policy Developments: highlights on strategic alignment to the Provincial Growth and Development Strategy, and also achievement of strategic objectives as set out in the IDP, and if not achieved, what are the corrective actions thereof

• Key Service Delivery Improvements: Mentioning of what the major successes of the year were for the city, and the challenges thereof

• Public Participation: highlight on what were the processes used to improve public awareness on the city services

• Future Actions: Initiatives committed whereby service delivery will be improved over the next few years

Office of the EM

End July 2017 first draft

Final draft end December 2017

B: Municipal Manager’s foreword

• Functions and powers of the municipality and entity in relation to section 155/156 of the Constitution and Chapter 3 of the MSA • Entities related to the municipality • Functions and powers of the municipality/ entity in relation to section 155/156 of the Constitution and Chapter 3 of the MSA • Entities related to the municipality and the sharing of power with these entities • Sector departments and the sharing of functions between the municipality/ entity and the sector departments • A statement on the previous financial years audit opinion • A short statement on the current financial health of the municipality/ entity based on new budget formats as required by treasury regulations No 31804 • Information related to the revenue trend by source including borrowings undertaken by the municipality • The internal management changes in relation section 56/57 managers • Risk assessment and mitigation measures thereof

Office of the CM and Governance Support Officer

End July 2017 first draft

Final draft end December 2017

Governance

Component A: governance structures • Political governance structure • Administrative governance structure

Governance support officer

End July 2017

Component B: Intergovernmental relations

Office of the Executive Mayor

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• Intergovernmental relations Component C: Public accountability and participation • Public meetings • IDP participation and alignment

Governance Support Officer and CSOP (IDP)

Component D: Corporate governance • Risk management • Anti-corruption and fraud • Supply chain management • By-laws • Websites • Public satisfaction on municipal services

All municipal oversight committees

Group Audit & Risk

Group Financial Services

Governance support officer

Group Human Capital Management Services

All the other departments in the city to contribute with information to some of the components in this chapter

Service Delivery Performance

Report on municipal

Performance derived from IDP objectives, translated into the SDBIP. The following components should be covered as follows:

Water provision

• water provision strategy (supply and demand)

Access to water

• access to 25 litres of potable water per day supplied within 200m of a hh and with a minimum flow of 10 litres per minute • 6,000 litres of potable water supplied per formal connection per month

Utility Services; Chief Operations Officer

End July 2017

Waste water (sanitation) provision

Access to sanitation

• Proportion of households with

access to sanitation Electricity • strategy for the provision of electricity at household level • Addressing of backlogs Waste management • progress made with waste disposal • street cleaning and recycling • Names of private waste removal companies

Environmental Management; COO, Regions

End July 2017

Housing • strategy for the provision of housing • Percentage of households with

COO, Housing & Human settlement

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access to basic services • hh in informal settlements • municipality’s policies towards indigent support • Free basic services to low income hh Roads • Roads strategy, the steps taken towards the implementation of the strategy • Total gravel roads constructed • Gravel roads upgraded to tar • Gravel roads graded/maintained • Total roads tarred • Existing tarred roads re-tarred • Tar roads maintained

COO, Roads & Transport

Planning and development • the main elements and implementation of the planning strategy • achievements and challenges in Town Planning and building regulation and enforcement

Economic Development & Spatial Planning

Local economic development (including tourism and market places) • implementation of economic development strategy • Contribution made to the local economy in facilitating job creation through by LED services • Prospects for economic growth and development • Job creation through EPWP programme

Economic Development & Spatial Planning

Community & social services Performance and service statistics to Libraries; archives; museums; galleries; community facilities; other (theatres, zoos, etc.) • Child care; aged care; social programmes • Performance and service statistics to statistics for cemeteries & crematoriums • Impact made on pollution control • Performance and service statistics for bio-diversity and landscape

Community & Social Development Services and Environment & Agriculture Management

4.Organisational development performance

Municipal Personnel • Employee totals, turnover and vacancies • Vacancies and turnover • municipal workforce levels management • HR Policies and plans • Information pertaining injuries, sickness and suspensions of employees (IOD’s, sick leaves, costs, etc.) • Performance rewards by gender • Capacitating the municipal

GSO, Group Human Capital Management Services

End July 2017

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workforce and skills development and related expenditure • Employee expenditure

Financial Performance

The chapter comprises of three components

Component A: Statement of financial performance

Component B: Spending against capital budget

Component C: Cash flow management and investment

Component D: Other financial matters

Group Financial Services (corporate and departmental)

COO

GSO

Heads of departments

Circular 63 of NT requires chapter 5 to be supplemented by the appendices of the annual report

Auditor General Audit Findings

An overview of the

AG report of the previous financial year. The findings of the AG report must be incorporated as they are, and may not be amended by the municipality. Information pertaining to the following is to be included in the chapter on the Auditor-General report:

• Detail on issues raised during the previous financial year; • Remedial action taken to address the above and preventative measures - Feedback on remedial actions is required from Group finance and Group audit and risk.

Office of the City Manager, Group Audit & Risk and Group Financial Services

All departments

End November and 1st week of December 2017

Appendices

A:

Councillors, committee allocation and

council attendance

• Complete list of al councillors, the party they belong to and the ward they represent • Information on the number of council meetings attended by each councilor needs to be provided

Governance support officer, Office of the speaker

End July 2017

B

Committee and purpose

• List al committees of Council • List the purpose of each committee and the names of councillors serving on them • Include information on the attendance of each councillor at scheduled meetings of the Committee.

C

Third tier administrative structure

The organogram of the Administrative structure of the municipality/municipal entity


D

Functions of the Municipality/ Entity

• What constitutes the Municipal functions • Indicate which functions apply

Group Human Capital Management Services Entities

End July 2017

E

Ward reporting

• Functions of ward committees • Sector of Community representation • Reports submitted by each ward committee • Feedback on the operations and functions of individual wards, challenges, measures taken to

Governance support officer, Office of the speaker

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address them F

Ward information

• Ward name (number) • For each ward, the 7 largest projects in the current year, with start date, end date, total value and progress. • Information on top four service delivery priorities per ward.

All departments, Group Finance

City Strategies And Performance Management

End July 2017

G Recommendations of the Municipal audit committee

• Provide recommendations of all the meetings of the audit committee • Indicate those that have been adopted and those that have not.

Group audit and risk

H Long term contracts and public private partnership

• Information on the largest projects, agreements and contracts. • Information related to PPPs and its duration. • Specific detail pertaining to the responsible departments for managing and implementing the roll-out of these projects is to be provided. • Duration and monetary value of the projects, agreements and contracts to be included.

Group Finance

GSO and COO

I Municipal entity/ service provider performance schedule

• Top 4 priority indicators as articulated in the IDP • All must be funded within approved budget provision

Municipal Entities

J Disclosure of financial interest

• Financial disclosures of EM and Councillors, senior managers and other section 57 officials. • The financial interest disclosure is required even of posts were occupied for part of the year.


K Revenue collection performance

• Revenue collection performance by vote • Revenue collection performance by source

Group Finance

L Conditional Grants received: excluding MIG

• Information on all the Grants Received by the municipality

M Capital expenditure- new and upgrade/renewal programmes including MIG(USDG)

• Capital expenditure-new assets programme • Capital expenditure upgrade renewal programme

N Capital programme by project current year

• Report on capital projects in the current financial year, showing adjusted budget, actual in the current year and the variance between the two

O Capital programme by project by ward current year

• The report should contain capital projects reporting by ward in the current financial year, and indicate whether work was completed or not

All Departments, COO

P Service Connection Backlogs at Schools and Clinics

• Report against backlogs in schools and clinics • Provide name and location information

COO

Q Service Backlogs

This is reporting on backlogs experienced by the Community where another sphere of government is responsible for service provision

COO, GSO

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R

Declaration of Loans and Grants made by the municipality

• List all organization’s or persons in receipt of loans and grants from the municipality • State the nature or projects funded • State conditions attached to such projects


S Declaration of returns not made in due time under MFMA s71

• Provide reporting on S71 reports not made in time

CFO

T National and Provincial Outcome for local government

Cover all areas not addressed in the Annual report • Relates to municipal powers and functions that can be used by National and Provincial spheres to monitor and evaluate service delivery performance • Show progress to date, numbers and percentage

All departments

Volume II: Annual Financial Statements

• As per section 67(1)(a)(iv) of MFMA. • Exclude financial statements of entities from this section


4.5 COORDINATION OF THE AOPO PROCESS

As in previous years, the coordination of the AOPO process for the city will take place as follows:

• CSOP to engage with the AOPO team of the AG and departments;

• all audit files of departments to be completed and ready, and the required listings to be submitted to CSOP per quarter, per month, showing final annual results;

• engagement with the AG on the AOPO matters to be as per the 2015/16 protocols, via CSOP department, and within the agreed timelines;

• submissions to the AG on the AOPO to be via CSOP, and corrections recommended by CSOP to be effected with urgency, before any submissions are made to the AG;

• the AGSA to route communications to the organisation on AOPO via the CM (or a delegated representative) and the AOPO coordinators (Anisha Dharumrajh and Aron Roopnarain); and

• departments to ensure that first level assurance has been conducted on all information.


Cognizance is taken of the contents of the report. The Group Financial Services Department has no objection to the proposed Annual Report Process Plan as it is line with the provisions of the applicable legislative framework. There are no financial implications emanating as a result of this report.

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5.2 COMMENTS OF THE CHIEF OF POLICE The Tshwane Metro Police Department (TMPD) takes cognisance of the content and significance of the report. However, it should be noted that the production of an Annual report is the responsibility of the City Strategies and Organisational Performance Department, with inputs to be made by all departments as regards the relevant areas.

5.3 COMMENTS OF THE GROUP HEAD: GROUP LEGAL AND SECRETARIAT SERVICES The purpose of this report is to: 1. Seek approval of a process plan for the tabling of the 2016/17 Financial Year

Annual Report that must be strictly adhered to by all Departments and Municipal Entities.

The report is aligned with Strategic Objectives 4 which aims at promoting Good Governance and Active Citizenry. Section 51 of the Local Government: Municipal Systems Act 32 of 2000 places a duty on the Municipality within its administration and financial capacity to establish and organize its administration in a manner that would enable the Municipality to amongst others, be performance orientated and focused on the objects of local government as embodied in Section 152 of the Constitution of the Republic of South Africa, Act 108 of 1996. In terms of Section 11(3) (a) (c) & (n) of the Local Government: Municipal Systems Act 32 of 2000, A municipality exercises its legislative or executive authority by developing and adopting policies, plans, strategies and programs, including setting of targets for delivery, establishing and maintaining an administration and also by doing anything else within its legislative and executive competence. The report complies with the provisions of section 68(1) of the Municipal Systems Act 32 of 2000, in terms of which the municipality must develop its human resource capacity to a level that enables it to perform its functions and exercise its powers in an economical, effective, efficient and accountable way. In terms of Section 121 of the Municipal Finance Management Act 56 of 2003, (1) every municipality and every municipal entity must for each financial year prepare an annual report in accordance with this Chapter. The council of a municipality must within nine months after the end of a financial year deal with the annual report of the municipality and of any municipal entity under the municipality’s sole or shared control in accordance with section 129. (2) The purpose of an annual report is—

(a) to provide a record of the activities of the municipality or municipal entity during the financial year to which the report relates; (b) to provide a report on performance against the budget of the municipality or municipal entity for that financial year; and

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(c) to promote accountability to the local community for the decisions made throughout the year by the municipality or municipal entity. Having taken regard to the aforesaid and with specific reference to the contents of the report, Group Legal Services Department support the approval of the report and the recommendations thereof and submits that the report and its annexures be referred to the Mayoral Committee for their attention and approval of the recommendations.

5.4 COMMENTS OF THE GROUP HEAD: CUSTOMER RELATIONS MANAGEMENT

The Customer Relations Management department takes note of the process plan for the tabling of the consolidated annual report for the city of Tshwane: financial year 2016/17 report contents and recommendations thereof. The CRM department support the annual report process plan for 2016/17 as per legislative imperative reporting. The department further request City Strategy to consider Macro Organisation structural changes of those who moved to another departments as it might hamper annual reporting integrity and validity of information provided.


The preparation of the Annual Report has human resource implications. All departments must ensure that teams are available to meet deadlines and to respond to the AG queries communicated via CSOP. In particular Communication & Marketing will need to make arrangements to have resources available for assistance in the following within short timeframes:

• language editing at short notice;

• assistance with the placement of adverts and notices in newspapers and on the website within legislated timelines;

• translation where required, especially if needed for public consultation; and

• assistance with placement of documents onto the website of the city. The GSO must assist to ensure that the Council resolutions are made available timeously in order to respond to legislated timelines for distribution to stakeholders, that ward committees receive copies of the annual report. The GSO must also ensure that all information submitted towards the APR on the human resources chapter is sound, timeous, verified and reliable. The shareholder unit and the CEOs of entities must ensure that the municipal entities reports, submissions and audit files are verified, reliable and available for audit, and that all submissions to the CSOP department are timeous. This is especially important regarding the SWA entity that is in the process of being

35

disestablished. There must be a dedicated person to answer on all audit questions from the AG pertaining to SWA.

6.2 FINANCES

The development of the annual report will not have financial implications if all departments perform their required functions. However, the CSOP department will oversee additional support to conduct verification of the AOPO to prepare for audit, from available consultants fees in the departments cost centres. There are planned funds in FY 2017/18 for the placement of newspaper notices and for printing of the draft documents for public consultation. However, the document will not be printed in glossy copy due to insufficient resources. It is further recommended that finance also contribute towards the placement of notices regarding the annual report and the AFS. Departments requiring additional assistance to ensure they are audit ready must utilise own funds and conduct their own procurement processes to obtain additional assistance.


The annual report process plan for FY 2016/17 is based on the provisions of the MFMA, the MSA, the PAA and the Constitution.

6.4 COMMUNICATION

The process plan, once approved must be communicated to all departments and stakeholders to ensure that timelines and content requirements are met by all stakeholders. CSOP will ensure that specific outputs as per legislation are submitted to legislated stakeholders.


None.

7. CONCLUSION

The annual report process plan sets out a process to develop and table the Annual Report for FY 2016/17. The timelines are based on legislated requirements as per the MFMA and the MSA, and the contents are based on the NT MFMA circular 63. Key aspects covered in the process plan are the requirement for all departments to have annual reports and for departments to ensure the submission of verified, reliable annual reports.

RESOLVED: That the Annual Report Process Plan be approved.

36

Reference No 28738/1 Umar Banda (8110) MAYORAL COMMITTEE: 19 April 2017 4. GROUP FINANCIAL SERVICES DEPARTMENT

PROGRESS REPORT ON THE GENERAL VALUATION PROCESS TO GIVE EFFECT TO THE CITY’S 2017-VALUATION ROLL (From the Executive Committee: 5 April 2017)

1. PURPOSE

The purpose of the report is to give an update to the City’s Mayoral Committee on the progress regarding the general valuation process that must give effect to the Valuation Roll of the period 1 July 2017 to 30 June 2020.

2. STRATEGIC OBJECTIVES 2.2 Improved financial sustainability. 3. BACKGROUND

Legislative Framework: The Local Government: Municipal Property Rates Act, 2004 (Act No. 6 of 2004), as amended, hereinafter referred as “the Act”, regulates the power of a municipality to impose rates on property, and the four most critical sections of this Act provide as follows: Section 30: General Valuation and preparation of valuation rolls-

• A municipality intending to levy a rate on property must in accordance with this Act, cause – (a) a general valuation to be made of all properties in the municipality

determined in terms of subsection (2); and

(b) a valuation roll to be prepared of all properties determined in terms of subsection (3).

Section 31: Date of valuation -

• For the purposes of a general valuation, a municipality must determine a date that may not be more than 12 months before the start of the financial year in which the valuation roll is to be first implemented;

Section 32: Commencement and period of validity of valuation rolls -

• A valuation roll –

(a) takes effect from the start of the financial year following completion of the public inspection period required by section 49; and

37

(b) remains valid for that financial year, or for one or more subsequent financial years as the municipality may decide, but in total not for more than -

(i) four financial years in respect of a metropolitan municipality; and

(ii) five financial years in respect of a local municipality.

Section 33: Designation of Municipal Valuer -

• a municipality must, before the date of valuation, designate a person as municipal valuer. A municipality may designate either one of its officials or a person in private practice as its municipal valuer.

4. DISCUSSION

Based on a report tabled before Council on 31 August 2016, asking for Council of the City: 1. to cause a general valuation to be made and a Valuation Roll to be prepared

for the period 1 July 2017 to 30 June 2020 (section 30);

2. to determine the date of valuation, (section 31); and

3. to designate a person as Municipal Valuer (section 33)

The Council resolved as follows:

• Designation of Municipal Valuer: T.I. Lehobye

• Date of Valuation:1 September 2016

• Validity of the Valuation Roll:1 July 2017 to 30 June 2020 (3 years) Hereafter, the general valuation process to prepare the valuation roll of the City for implementation on 1 July 2017, was commenced with and all other subsequent compliance assignments addressed, as the Project Plan hereunder indicates:

PROJECT PLAN FOR GV – 2017

PROJECT ITEM MPRA - COMPLIANCE

PROJECTED DATE

ACHIEVED

Council resolution to cause GV – 2017 to be made

Section 30 November 2015 31 August 2016

Appointment of Municipal Valuer

Section 33 November 2015 21 August 2016

Determination of date of Valuation, 1 September 2016

Section 31 November 2015 1 September 2016

Commence with GV – 2017 Planning Process

� Market research and

Section 30(2) 1 November 2015 - 31 January 2016

11 February 2016

11 February 2016

38

determining of tariff basis for City of Tshwane area on Mass valuations � Approval of GV Manual

Actual GV process as on date of Valuation – 1 September 2016

� Commence with manual valuations I. e Parks, Farms, AH, Business/commercial, education institutions, etc. � Commence with Valuations of vacant land, residential properties and sectional title units (CAMA)

2 July 2016

2 February 2016

1 August 2016

9 May 2016

Quarterly reports to be submitted to the MEC in terms of Sect 81 of the MPRAA

Section 81 April 2017

July 2017

October 2017

To be done

Completion of Valuation Roll and submission to the Office of the City Manager

Section 49 31 January 2017 31 January 2017

Public Notice of the Valuation Roll

� Publish in the Provincial Gazette (Gauteng and North West) � In media, once a week for two consecutive weeks (Beeld and Pretoria News) � Notify every Owner of the new values on the accounts � Place Notice and Valuation Roll on the public website

Section 49

Section 49

Section 49

Section 49

Section 49

February 2017 to March 2017





In progress

In progress

In progress

Done

In progress

As informed by the above Project Plan, it can be noted that numerous milestones have been achieved in the process, including the submission of the Valuation Roll to the Office of the City Manager on 31 January 2017, as prescribed by section 34 of the Act, that among the functions of the municipal valuer – “the valuer of a municipality must in accordance with this act, submit the signed and certified valuation roll to the municipal manager within five months before the effective date of such a valuation roll.” Whereas section 49 of the Act, further provides that –

39

“(1) The valuer of a municipality must submit the certified valuation roll to the municipal manager, and the municipal manager must within 21 days of receipt of the roll –

(a) publish in the prescribed form in the provincial Gazette, and once a

week for two consecutive weeks, advertise in the media, a notice –

(i) stating that the roll is open for public inspection for a period stated in the notice, which may not be less than 30 days from the date of publication of the last notice; and

(ii) inviting every person who wishes to lodge an objection in

respect af any matter in, or omitted from, the roll to do so in the prescribed manner within the stated period;

(b) disseminate the substance of the notice referred to in paragraph (a), to

the local community in terms of Chapter 4 of the Municipal Systems Act; and

(c) serve, by ordinary mail or, if appropriate, in accordance with section

115 of the Municipal Systems Act, on every owner of property listed in the valuation roll a copy of the notice referred to in paragraph (a), together with an extract of the valuation roll pertaining to that owner’s property.

(2) If the municipality has an official website or another website available to it,

the notice and the valuation roll must also be published on that website.”

The prescribed NOTICES have been prepared and arrangements are underway for the publication in the Provincial Gazette, the Pretoria News and the Beeld, as required by the Act.

The Valuation Roll will be open for inspection and objections at the appropriate offices of the City, from 22 February 2017 to 19 May 2017. Hereunder is a summary of the Valuation Roll per category for the 2013 - 2017 and 2017 -2020 period:

CATEGORY VR 2013 - 2017

COUNT

VR 2013 - 2017

TOTAL MARKET VALUE

VR 2017 - 2020

COUNT

VR 2017 - 2020

TOTAL MARKET VALUE

Agricultural Properties 17 659

R 21 919 262 891 18 646

R 24 047 234 050

Business and commercial properties

10 623

R 52 656 229 856

12 447

R 72 735 401 032

Educational Institutions 710

R 8 498 547 000

752

R 9 557 751 630

Independent Schools PBO

30

R 396 030 000

33

R 465 605 000

Industrial properties 2 989

R 8 993 770 264

3 343

R 12 638 829 897

Mining 25

R 39 145 000

21

R 46 800 000

Municipal Property 10 676

R 6 584 193 319

27 891

R 9 002 516 004

No Category 7 589

R 3 873 031 583

6 365

R 4 425 499 863

Non permitted use 258

R 338 760 002 332

R 559 284 003

Protected areas 30

R 8 760 100 31

R 8 970 100

Public Benefit Organisation

0

0 1

R 6 200 000

40

Public Service Infrastructure

2 720

R 469 175 506 2 936

R 822 085 199

Public Worship 1 051

R 3 185 537 700

1 123

R 3 813 610 800

Residential properties 498 306

R 262 562 842 601

558 850

R 327 852 282 115

State Trust Land 0 0 1

R 105 000

State-owned properties/Government

682

R 4 731 938 401

714 5 669 757 501

Vacant land 26 860

R 9 542 962 549

21 229 8 938 642 354 TOTAL 580 208

383 800 186 772

654 715 480 590 574 548


Cognisance is taken of the contents of the report. There are no additional financial implications emanating as a result of this report for the City of Tshwane budget as the intent of theis report to give an update to the City’s Mayoral Committee on the progress regarding the general valuation process that must give effect to the Valuation Roll of the period 1 July 2017 to 30 June 2020. The Group Financial Services Department will render further financial comments on future reports in this regard.


SERVICES

The purpose of this report is to give an update to the City’s Mayoral Committee on the progress regarding the general valuation process that must give effect to the Valuation Roll of the period 1 July 2017 to 30 June 2020. Having regard to the contents of this report, Group Legal Department takes cognizance of the reports and notes the recommendations therein.


None. 6.2 FINANCES

Improved financial sustainability for the City. 6.3 CONSTITUTIONAL AND LEGAL FACTORS

Full compliance with the Local Government: Municipal Property Rates Act, 2004, as amended.

6.4 COMMUNICATION

Prescribed procedures for publication of notices to the public and property owners in accordance with the Act.

41


Council approved on 31 August 2016 to cause a general valuation to be made of all properties, and a valuation roll to be prepared for implementation on 1 July 2017.

7. CONCLUSION

Having had regard of all the milestones already achieved with regard to the City’s General Valuation – 2017, we are confident that compliance with the Act thus far, has been accomplished.

RESOLVED: That cognisance be taken of the progress made with regard to the City’s General Valuation for 2017.

42

F8.4 Umar Banda (8110) MAYORAL COMMITTEE: 19 April 2017 5. GROUP FINANCIAL SERVICES DEPARTMENT

CAPITAL BUDGET PROGRESS AS AT 31 MARCH 2017 1. PURPOSE

The purpose of the report is to present a financial update on the Adjusted Capital Expenditure Programme for the 2016/17 financial year.

2. STRATEGIC OBJECTIVE (Unaltered)

“To ensure financial sustainability”

3. BACKGROUND On 23 February 2017 Council approved the adjustment to the 2016/17 Medium-term Revenue and Expenditure Framework (MTREF). The Capital budget has increased with a total amount of R59,4 million mainly attributed to additional allocations, transfers from the operating budget and external funding rollover. This report indicates the financial performance on the adjusted capital expenditure programme from 1 July 2016 to 31 March 2017. The actual expenditure is measured against the cumulative projections as extracted from the accounting system. Comparative financial information is also provided.

4. CAPITAL EXPENDITURE 4.1 Capital expenditure per month (actual versus projection)

Table 4.1.1 below reflects the capital budget and the actual expenditure per month for the period 1 July 2016 to 31 March 2017, where actual expenditure is measured against the adjusted projections reflecting the monthly variance as well as the percentage spent against the total adjusted budget. The actual year-to-date expenditure as at 31 March 2017 amounts to R1 716 million or 37,9% of the Total Budget of R4,5 billion. The percentage spent excluding the smart meters is 48% against the total adjusted budget.

43

Table 4.1.1: Capital Expenditure: 1 July 2016 to 31 March 2017 per month (Actual versus projection)

Table 4.1.2 below provides a summary of the capital expenditure for the previous financial year (period 1 July 2015 to 31 March 2016). The actual expenditure amounts to R2 098 million or 52,3% of the Total Budget of R4 billion. Table 4.1.2: Capital Expenditure: 1 July 2015 to 31 March 2016

When comparing the percentage of cumulative actual against total budget between the two periods, a decrease of 14,4% is reflected.

Adjusted

Budget 2016/17

Adjusted

Expenditure

Projection

(Per 1-09)

Actuals (YTD)

(01/07/2016-

31/03/2017)

Variance

(Actual vs

Adjusted

Projection)

Cumulative

Actual as %

of Total

Adjusted

Budget

(R) (R) (R) (R) %

July 124 340 124 340 124 340 0 0.0%

August 128 494 433 128 494 433 128 494 433 0 2.8%

September 152 136 024 152 136 024 152 136 025 0 6.2%

October 352 182 162 352 182 162 352 182 162 0 14.0%

November 286 123 055 286 123 055 286 123 056 0 20.3%

December 249 294 131 249 294 131 249 294 131 0 25.8%

January 264 746 398 264 746 398 155 968 539 ( 108 777 859) 29.3%

February 332 059 612 332 059 612 167 945 209 ( 164 114 403) 33.0%

March 429 116 158 429 116 158 224 096 409 ( 205 019 748) 37.9%

April 453 101 846 0 0 0

May 517 943 385 0 0 0

June 1 359 264 864 0 0 0

Total 4 524 586 409 2 194 276 314 1 716 364 305 ( 477 912 008) 37.9%

Month

Capital Expenditure per month for the CoT - 2016/17 FY

MonthAdjusted Budget

2015/16

Adjusted

Expenditure

Projection

(Per 1-09)

Actuals (YTD)

(01/07/2015-

31/03/2016)

Variance (Actual

vs Adjusted

Projection)

Monthly Actual

as % of

Adjusted

Projection

Cumulative

Actual as % of

Adjusted

Budget

(R) (R) (R) (R) % %

July 55 244 079 55 244 079 55 244 079 0 100.0% 1.4%

August 114 501 056 114 501 056 114 501 056 0 100.0% 4.2%

September 216 441 982 216 441 982 216 441 982 0 100.0% 9.6%

October 281 689 708 281 689 708 281 689 708 0 100.0% 16.7%

November 430 223 530 430 223 530 430 223 530 0 100.0% 27.4%

December 356 853 853 356 853 853 356 853 853 0 100.0% 36.3%

January 118 180 440 118 180 440 118 180 440 0 100.0% 39.2%

February 277 098 370 277 098 370 280 718 811 3 620 441 101.3% 46.2%

March 314 392 290 314 392 290 244 613 475 ( 69 778 815) 77.8% 52.3%

April 422 638 141

May 602 462 177

June 819 467 671

Total 4 009 193 296 2 164 625 307 2 098 466 933 ( 66 158 374) 96.9% 52.3%

Capital Expenditure per month for the CoT - 2015/16 FY

44

4.2 Capital Expenditure per Funding Source

Table 4.2 below shows the cumulative actual Capital Expenditure per Funding Source for the current financial year up to 31 March 2017. Table 4.2.1: Capital Expenditure per Funding Source excluding Commitments

The following department indicate that they will not spent all the USDG funding:

• Roads and Transport – R25,6 million, mainly on the Re Aga Tshwane project.

• Utility Services: Energy and Electricity – R1,5 million, mainly on the “Strengthening of 11kv Overhead Network” and “Substations” projects.

Table 4.2.2: Capital Expenditure per Funding Source including Commitments

Funding SourceAdjusted

Budget

YTD Adjusted

Expenditure

Projections

31 March 2017

YTD

Actual

Expenditure

31 March

2017

Variance

(Actual vs

Adjusted

Projection)

Actual as %

of Adjusted

Expenditure

Projection

Actual as

% of

Adjusted

Budget

Funds

projected not

to be spent

as at

30 June 2017

R'000 R'000 R'000 R'000 % % R'000

Council Funding 980,000 251,991 8,755 (243,236) 3.5% 0.9% 1,000

Public Transport Infrastructure and Systems Grant (PTIS) 750,000 348,679 300,547 (48,132) 86.2% 40.1% 600

Neighbourhood Development Partnership Grant (NDPG) 48,500 28,595 33,841 5,246 118.3% 69.8% 0

USDG (replaces MIG)- Urban Settlements Development Grant 1,493,154 1,036,366 947,667 (88,699) 91.4% 63.5% 27,071

Intergrated National Electrification Programme (INEP) 40,000 25,490 26,575 1,085 104.3% 66.4% 0

Capital Replacement Reserve 18,500 2,865 406 (2,458) 14.2% 2.2% 0

Other Contributions 200 200 200 0 100.0% 100.0% 0

Community Library Services (CLS) 6,978 3,520 3,012 (508) 85.6% 43.2% 78

Borrowings 1,000,000 415,732 311,864 (103,868) 75.0% 31.2% 67,526

Public Contributions & Donations 100,000 55,253 43,710 (11,543) 79.1% 43.7% 2,207

Social Infrastructure Grant 41,000 22,976 39,077 16,101 170.1% 95.3% 0

LG SETA Discretionary Allocation 10,000 2,610 710 (1,900) 27.2% 7.1% 0

Integrated City Development Grant (ICDG) 36,254 0 0 0 #DIV/0! 0.0% 0

Total 4,524,586 2,194,276 1,716,364 (477,912) 78.2% 37.9% 98,482

Capital Expenditure for the CoT per Funding Source as at 31 March 2017

Funding SourceAdjusted

Budget

YTD

Actual

Expenditure

31 March 2017

Commitment

YTD

Cumulative

Actual +

Committed

Budget Not

Spent (Adjusted

Budget - Cum

Actual +

Committed YTD)

Actual +

Committed

as % of

Adjusted

Budget

R'000 R'000 R'000 R'000 R'000 %

Council Funding 980,000 8,755 8,749 17,503 962,497 1.8%

Public Transport Infrastructure and Sy stems Grant 750,000 300,547 154,449 454,996 295,004 60.7%

Neighbourhood Dev elopment Partnership Grant (NDPG) 48,500 33,841 8,264 42,106 6,394 86.8%

USDG (replaces MIG)- Urban Settlements Dev elopment

Grant

1,493,154 947,667 144,078 1,091,746 401,408 73.1%

Intergrated National Electrification Programme (INEP) 40,000 26,575 646 27,221 12,779 68.1%

Capital Replacement Reserv e 18,500 406 172 579 17,921 3.1%

Other Contributions 200 200 0 200 0 100.0%

Community Library Serv ices (CLS) 6,978 3,012 1,703 4,715 2,263 67.6%

Borrow ings 1,000,000 311,864 144,419 456,283 543,717 45.6%

Public Contributions & Donations 100,000 43,710 16,255 59,965 40,035 60.0%

Social Infrastructure Grant 41,000 39,077 219 39,297 1,703 95.8%

LG SETA Discretionary Allocation 10,000 710 2,180 2,889 7,111 28.9%

Integrated City Dev elopment Grant (ICDG) 36,254 0 0 0 36,254 0.0%

Total 4,524,586 1,716,364 481,135 2,197,499 2,327,087 48.6%

Capital Expenditure for the CoT per Funding Source as at 31 March 2017

45

4.3 Capital Expenditure per Department

Table 4.3.1 below reflects the adjusted budget and the variance against YTD adjusted projection and YTD actual per Department. Information relating to individual projects per Department is attached to the report. Table 4.3.1: Actual Capital Expenditure per Department: 1 July 2016 to 31 March 2017

The above table reflects none spending and low expenditure in the following Departments:

• Group Property - The “City Hall Renovations” project has been put on hold pending the outcome of the investigation.

• Regional Operations and Coordinations – the budget is allocated for Jojo Tanks on the Re Aga Tshwane project during the adjustments budget, spending is expected in the following months.

• Shared Services: Corporate & Shared Services - TLMA tenders have been cancelled due to non-response of suppliers. There are tenders that needs to be evaluated and SCM has not yet allocated dates for evaluation. With regard to the quotation files, the division received 5 of a total of 27 from SCM to be captured this week.

Included under Energy and Electricity is the R950 million provision for the smart meters. The percentage spent excluding the smart meters is 48% against the total adjusted budget. The percentage spent excluding the smart meters on the YTD adjusted projections is 87,7%.

Adjusted Budget

2016/17

YTD Adjusted

Expenditure

Projection

YTD Actual

(01/07/2016-

31/03/2017)

Variance

(Actual vs

Adjusted

Projection)

Actual as % of

YTD Adjusted

Expenditure

Projection

Actual as %

of Adjusted

Budget

R R R R % %

City Manager 58 500 000 31 095 270 33 955 931 2 860 661 109.2% 58.0%

Community & Social Development Services 134 678 229 76 569 285 80 932 747 4 363 462 105.7% 60.1%

Community & Social Development Services: Sports and Recreation 85 978 229 48 681 425 39 177 003 ( 9 504 423) 80.5% 45.6%

Community & Social Development Services: Social Development 48 700 000 27 887 859 41 755 744 13 867 885 149.7% 85.7%

Community Safety 41 000 000 6 692 237 25 413 388 18 721 151 379.7% 62.0%

Community Safety: Emergency Services 11 000 000 6 692 237 9 324 686 2 632 449 139.3% 84.8%

Community Safety: Metro Police Services 30 000 000 0 16 088 702 16 088 702 #DIV/0! 53.6%

Economic Development & Spatial Planning 101 654 200 42 076 095 24 806 619 ( 17 269 476) 59.0% 24.4%

Economic Development & Spatial Planning: City Planning & Development 36 254 200 0 0 0 #DIV/0! 0.0%

Economic Development & Spatial Planning: Economic Development 65 400 000 42 076 095 24 806 619 ( 17 269 476) 59.0% 37.9%

Environment & Agriculture Management 38 500 000 17 897 463 10 736 786 ( 7 160 677) 60.0% 27.9%

Group Financial Services 108 500 000 31 681 221 27 997 154 ( 3 684 067) 88.4% 25.8%

Group Property 22 000 000 5 499 999 0 ( 5 499 999) 0.0% 0.0%

Health 22 200 000 10 248 797 3 694 012 ( 6 554 785) 36.0% 16.6%

Housing & Human Settlement 569 704 001 459 241 435 415 683 855 ( 43 557 580) 90.5% 73.0%

Regional Operations and Coordination 3 000 000 1 500 000 0 ( 1 500 000) 0.0% 0.0%

Roads & Transport 1 229 535 229 619 204 130 593 985 362 ( 25 218 769) 95.9% 48.3%

Shared Services 184 700 000 100 326 401 37 825 380 ( 62 501 022) 37.7% 20.5%

Shared Services: Corporate & Shared Services 10 000 000 2 609 999 709 619 ( 1 900 380) 27.2% 7.1%

Shared Services: Group Information & Communication Technology 174 700 000 97 716 402 37 115 761 ( 60 600 642) 38.0% 21.2%

Utility Services 2 010 614 750 792 243 982 461 333 073 ( 330 910 909) 58.2% 22.9%

Utility Services: Energy & Electricity 1 458 664 750 499 268 662 230 978 171 ( 268 290 490) 46.3% 15.8%

Utility Services: Water & Sanitation 551 950 000 292 975 320 230 354 901 ( 62 620 419) 78.6% 41.7%

Total 4 524 586 409 2 194 276 314 1 716 364 305 ( 477 912 008) 78.2% 37.9%

Departments / Divisions

Capital Expenditure for the CoT per Department as at 31 March 2017

46

Table 4.3.2 hereafter represents the YTD actual, the YTD committed and total unspent capital expenditure compared against the allocated budget per Department for the municipality. Table 4.3.2: Actual + Committed Capital Expenditure per Department: 1 July 2016 to 31 March 2017

Funds projected not to be spent at year end amounts to R98,5 million. 5. COMMENTS OF THE STAKEHOLDER DEPARTMENTS 5.1 COMMENTS OF THE GROUP HEAD: GROUP LEGAL AND SECRETARIAT

SERVICES

“The purpose of the report is only to provide the financial progress on the adjusted capital budget. The report does not call for specific legal comments and can therefore be tabled for consideration.”

6. IMPLICATIONS

6.1 HUMAN RESOURCES

Not applicable.

6.2 FINANCES

This report is a financial overview of the capital expenditure.

Adjusted Budget

2016/17

YTD Actual

(01/07/2016-

31/03/2017)

YTD

Commitment

Actual +

Commitment

(YTD)

YTD Actual +

YTD

Commitment

as % of

Adjusted

Budget

Unspent

(Adjusted

Budget - YTD

Actual + YTD

Committed)

Funds

projected not

to be spent

as at

30 June 2017

R R R R % R R

City Manager 58 500 000 33 955 931 14 126 229 48 082 160 82.2% 10 417 840 0

Community & Social Development Services 134 678 229 80 932 747 4 845 745 85 778 492 63.7% 48 899 737 178 229

Community & Social Development Services: Sports and Recreation 85 978 229 39 177 003 4 626 447 43 803 450 50.9% 42 174 779 178 229

Community & Social Development Services: Social Development 48 700 000 41 755 744 219 298 41 975 042 86.2% 6 724 958 0

Community Safety 41 000 000 25 413 388 566 953 25 980 341 63.4% 15 019 659 615 000

Community Safety: Emergency Services 11 000 000 9 324 686 26 315 9 351 001 85.0% 1 648 999 15 000

Community Safety: Metro Police Services 30 000 000 16 088 702 540 638 16 629 340 55.4% 13 370 660 600 000

Economic Development & Spatial Planning 101 654 200 24 806 619 0 24 806 619 24.4% 76 847 581 4 000 000

Economic Development & Spatial Planning: City Planning & Development 36 254 200 0 0 0 0.0% 36 254 200 0

Economic Development & Spatial Planning: Economic Development 65 400 000 24 806 619 0 24 806 619 37.9% 40 593 381 4 000 000

Environment & Agriculture Management 38 500 000 10 736 786 21 335 675 32 072 461 83.3% 6 427 539 0

Group Financial Services 108 500 000 27 997 154 10 904 212 38 901 366 35.9% 69 598 634 9 871 492

Group Property 22 000 000 0 0 0 0.0% 22 000 000 0

Health 22 200 000 3 694 012 274 981 3 968 993 17.9% 18 231 007 0

Housing & Human Settlement 569 704 001 415 683 855 14 685 229 430 369 084 75.5% 139 334 917 0

Regional Operations and Coordination 3 000 000 0 0 0 0.0% 3 000 000 0

Roads & Transport 1 229 535 229 593 985 362 186 905 500 780 890 862 63.5% 448 644 367 30 770 000

Shared Services 184 700 000 37 825 380 57 582 053 95 407 433 51.7% 89 292 567 0

Shared Services: Corporate & Shared Services 10 000 000 709 619 2 179 502 2 889 121 28.9% 7 110 879 0

Shared Services: Group Information & Communication Technology 174 700 000 37 115 761 55 402 551 92 518 312 53.0% 82 181 688 0

Utility Services 2 010 614 750 461 333 073 169 908 214 631 241 287 31.4% 1 379 373 463 53 047 553

Utility Services: Energy & Electricity 1 458 664 750 230 978 171 36 216 007 267 194 178 18.3% 1 191 470 572 46 707 553

Utility Services: Water & Sanitation 551 950 000 230 354 901 133 692 207 364 047 108 66.0% 187 902 892 6 340 000

Total 4 524 586 409 1 716 364 305 481 134 791 2 197 499 096 48.6% 2 327 087 313 98 482 274

Departments / Divisions

Capital Expenditure for the CoT per Department as at 31 March 2017

47

6.3 CONSTITUTIONAL AND LEGAL FACTORS The implication of approval of this report is in compliance to the Executive Mayor’s request.

6.4 COMMUNICATION That this report be circulated to all Heads of Departments, Executive Directors and Members of the Mayoral Committee for cognisance and action if necessary.


Not applicable.

7. CONCLUSION

This report aims to provide the financial performance on the implementation of the Adjusted Capital Programme for the 2016/17 financial year, as approved by Council on 23 February 2017. When comparing the percentage of the cumulative actual against the total adjusted budget between this financial year and the same period in the previous financial year a decline in expenditure of 14,42% is reflected. Actual expenditure for this period amounts to R1 716 million or 37,9% of the total Adjusted Budget of R4,5 billion. Funds projected not to be spent at year end amounts to R98,5 million.

IT WAS RECOMMENDED (TO THE MAYORAL COMMITTEE: 19 APRIL 2017): That cognisance be taken of the monthly performance of the Capital Expenditure Programme of the City of Tshwane as at 31 March 2017. RESOLVED: 1. That cognisance be taken of the monthly performance of the Capital Expenditure

Programme of the City of Tshwane as at 31 March 2017; 2. That the Group Head: Community and Social Development Services in consultation

with the Executive Director: Supply Chain Management review the tender process with regard to the Redevelopment of the Caledonian Stadium project with the intention of advertising a new tender that satisfies the specifications of the amended project plan; and

3. That the Chief Financial Officer submits a report on the funding implications with

regards to the City Hall Renovations and the Caledonian Stadium project to the Mayoral Committee meeting scheduled for Wednesday, 3 May 2017.

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Reference No 68265/1[ESD 2/9/1] Joan De Beer (2136) MAYORAL COMMITTEE: 19 April 2017 6. EMERGENCY MANAGEMENT SERVICES DEPARTMENT

FEEDBACK REPORT REQUESTED FROM THE SECTION 79 OVERSIGHT COMMITTEE ON COMMUNITY SAFETY TOWARDS THE STATUS OF THE EMERGENCY SERVICES FLEET WITHIN THE CITY OF TSHWANE (From the Executive Committee: 5 April 2017)

1. PURPOSE

The purpose of the report is to inform the Mayoral Committee of the request received from the Section 79 Oversight Committee: Community Safety to provide feedback on the status of the Emergency Services fleet, as forthcoming from the in loco inspection conducted at the Heuweloord Emergency Services facility.


Ensure Sustainable, Safer Communities and Integrated Social Development.

3. BACKGROUND

The Emergency Services Department does have a number of departmental functions that are critical to the City’s emergency services activities. The department strives to coordinate and manage citywide emergency services so as to increase the preparedness of all citizens, enhance the City’s collective ability to plan for, mitigate and respond to emergencies. The following services are rendered by the department:

• The delivery of Fire Brigade Services to the community;

• The delivery of Emergency Medical Services to the community;

• The delivery of a Disaster Management service to the community;

• The delivery of Specialist Task Force service to the community;

• The delivery of a 24/7 Emergency call taking and dispatch centre services;

• The training, research and development of all personnel of the Emergency Services Department; and

• The delivery of a support, logistical and administrative service to the department. The department provides emergency services in all seven (7) regions within the City and operates in 23 Emergency Services stations:

• Region 1: Garankuwa, Mabopane, Jabulane, Rosslyn and Spectrum;

• Region 2: Innesdale, Wonderboom, Temba and the Hammanskraal Metro Police Department Offices;

• Region 3: Atteridgeville, Phillip Nel Park, Central and Hatfield;

• Region 4: Centurion and Heuweloord;

• Region 5: Rayton and to an extent Emergency Medical Services from the De Wagensdrift premises; and

• Region 6: Erasmuskloof, Mamelodi, Silverton and Hazelwood

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• Region 7: Bronkhorstpruit and Ekangala, The Emergency Services resources are deployed across all 7 Regions of the City of Tshwane and respond from Emergency Services stations in these regions. In accordance with the master plan, risk categories and operational fleet deployment strategy, specific classes of vehicles are needed in certain areas in order to address any eventuality or emergency in the city. Since the inception of the centralization model for fleet maintenance for the City of Tshwane has been in 2013, Corporate Fleet Management (CFM) were assigned to be the soul custodian of the repair processes on behalf of Client Departments. The performance on the repairs and maintenance of emergency vehicles have gradually deteriorated over the past few years. In addition, the introduction and roll out of CB 54/2014 have further contributed to the decline in vehicle availability. The Service provider, Fleet Africa was appointed for the maintenance of the existing fleet and the replacement of obsolete vehicles for Emergency Services Department, via the Full Maintenance Lease (FML) model. They facilitate the repairs in conjunction with Corporate Fleet Management (CFM). The Emergency Services Department has very little influence or role to play to expedite the repair process in terms of the maintenance management model utilized for the repairs and maintenance of the current owned fleet. The role is therefore limited to initiate the repairs and making follow ups on the expected delivery dates on the conclusion of vehicle repairs. To this end, the availability of the Emergency Services Department’s Red and White Fleet is of upmost importance to deliver on the department’s mandate.

4. DISCUSSION

The up-time availability of vehicles has dropped to an unacceptable low of 39% in December 2016. This is indicative that the new centralization model is not successful in lowering the downtime of our vehicles. There are still a high number of accident vehicles not being released. Accident vehicles represent 11% of the downtime of these categories. This up-time is well below the target of 80%, based on the following categories of vehicles as determined by the Emergency Services Master Plan:

• Engine Company

• Truck Company

• Water Tankers

• Grass Fire Units

• Ambulances

• Rapid Response vehicles The average number of ambulances available was 31 out of a possible 82 for the said period and is totally unacceptable. The decrease in up-time of ambulances is mainly due to the slow repair process currently. Some repairs are still awaited after more than 7 months!

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Currently, the City of Tshwane has a total of 269 Emergency Services Department vehicles allocated, ranging from operational rescue pumpers, aerial ladders and hydraulic platforms, water tankers, special units, grass fire units, rapid response vehicles ambulances, transporters, support and utility vehicles.

Of these 269 vehicles, 41 are forthcoming from Gauteng Provincial Health Services:

• 5 are light vehicles used as utility vehicles;

• 6 are utilised as response vehicles; and

• 30 that are used as ambulances. The remaining 228 are part of the City’s Emergency Services Department red and white fleet. The depiction below represents the November 2016 vehicle availability. What is of essence is the average percentage of different vehicle types being available for service delivery. November 2016

4.1 Strengths

The department did purchase over the past 5 years 10 Fire engines which replaced 50% of the fire engines, as well as 6 water tankers which have the same fire extinguishing function as the above engines. On the Full Maintenance Lease (FML) program the department is awaiting delivery of the following vehicles:

• 1 medium fire engine to be delivered June 2017

• fire engines to be delivered by end of December 2017

• 21 ambulances to be delivered end of February 2017 (12 from the original 33 was received end of 2016)

• 1 multi patient transporter received in December 2016

• 1 Hazardous substance vehicle to be delivered end of December 2017

• 1 mobile incident command to be delivered end of December 2017

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• 16 Rapid intervention vehicles with the capacity of doing rescues and vehicle and smaller fires

• 1 rope rescue vehicle

• 1 swift water rescue vehicle

Except for the ambulances, the above vehicles will be delivered fully equipped with tools of the trade. Fire engines lifespan could be 10 years and a replacement strategy for the vehicles was compiled. Furthermore, vehicles which are urgently required for the Capital City is the minimum of 5 fire ladders, due to the high rise buildings and also to produce aerial fire-fighting at deep to reach building types, such as factories and warehouses. The life span of a ladder and its guarantee and warranty is 20 years and on the Full Maintenance Lease (FML) contract, it may be too expensive. Other specialised vehicles will be 3 fully equipped Breathing Apparatus (BA) vehicles. Another hazardous substance vehicle and the provision for helicopters to evacuate patients especially from incidents in the far outlying areas, where academic and level 1 hospitals are distant.

4.2 Challenges

The Department is facing several constraining factors that contribute negatively towards vehicle availability and subsequent service delivery to the community. These include but are not limited to:

4.2.1 Lengthy repair processes

Lengthy repair processes which results in prolonged repair periods where priority vehicles are unavailable for service delivery. Specialised vehicles are more likely to have lengthy repair periods. This is usually due to the unavailability of certain replacement spares for pumps or hydraulic systems at service providers. Where a vehicle is booked in for a regular service for an engine or gearbox, it might be addressed within a few days but any additional maintenance problems might delay the repairs. In some instances, the vehicle can be out of commission for a month or much longer, depending on spares availability.

4.2.2 Interdependencies on other role players

The interdependencies on Corporate Fleet; Fleet Africa as the appointed service provider in terms of CB54/2015 and Supply Chain Management to avail purchase orders and conclude on job cards, maintenance and breakdowns.

4.2.3 Age and high kilometres/mileage of vehicles The age of some vehicles unfortunately contributes negatively towards vehicle maintenance due to the fact that these older vehicles generally need more attention, are more likely to have breakages and have a direct negative impact on

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the available repair and maintenance funds. The life span of the older vehicles needs to be monitored and should be replaced once it is no longer economically viable to maintain. Financial constraints and the lack of capital funds for replacements sometimes necessitates the continuation of repairs on certain vehicles even though they should have already been replaced. Furthermore, the value of older vehicles decreases to such an extent that the current value is far less compared to cost for a new replacement vehicle or the maintenance costs over a period exceeds the actual value of the vehicle.

4.2.4 Unscheduled maintenance and break downs Repair and maintenance costs in general are very difficult to control financially due to the unplanned/unscheduled nature of break downs and emergency repairs which is usually according to need - as and when required. It also often happens that vehicles coming in for minor services or repairs have to be sent in to address additional problems such as clutch and transmission, brakes, electrical or tyre replacements. These additional faults have a negative impact on the repair funds as the repair costs per vehicle are then much higher than originally anticipated. It often happens that a vehicle is repaired and put back in operations, only to be taken out of service again a few days later with other reported problems.

4.2.5 Availability of spare parts The availability of certain spare parts, especially on the specialised fleet has had a very negative effect on down time. The specialised fleet are mostly imported from the United States of America and Europe and spare parts are not always readily available. These parts then need to be imported which sometimes results in delays at customs and international agents.

4.2.6 Limited insurance replacement for vehicles that are written off The non-replacement of emergency specialized vehicles over the past financial years has also contributed negatively towards vehicle availability due to the fact that these resources are no longer available for utilization. That resulted in decreased resources to render emergency services. Two Fire engines that were scrapped due to accident and fire damage in 2014 and haven’t yet been replaced.

4.2.7 Service providers utilised by Fleet Africa

The Service providers used by Fleet Africa are not all competent to work on the specialised fleet resulting in premature failures where vehicles are send back for the same repairs. This matter was discussed at lengths at various forums but without the desired outcome. It was again proposed by Emergency Services Department that specific vehicles are assigned to specific Merchants for history and continuity purposes and also to have them take responsibility on work executed on vehicles.

4.2.8 E-Procurement The E-Procurement procedure is according to feedback received from Centralised Fleet Management (CFM), the main reason why orders couldn’t be released. The non-approval of orders for maintenance requiring a “strip and quote”, due to only one quotation been submitted for approval was identified as the biggest stumbling block in the process. Currently less than a quarter of the available frontline vehicles

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are available to render emergency services. This has a direct effect on the effectiveness and performance of the service to cope with the mitigation of risks in the City of Tshwane.

4.2.9 Service Level Agreement (SLA) There is currently no Service Level Agreements (SLA’s) in place to regulate how long certain repair processes in the repair chain should take. A draft Service Level Agreement (SLA) was submitted in November 2015 to Centralised Fleet Management (CFM) for finalisation but there is a delay in signing it. This has been a real challenge as it is solely relying on the commitment from other role players. If issues aren’t followed up some of the functions are executed on an as and when basis.

4.2.10 Reoccurring mechanical problems It happens that after repairs were done on certain systems on these vehicles, the same problems recurs which results in vehicles moving in and out of workshops for same problems.

4.2.11 Insurance repairs The high number of accidents with emergency vehicles has a very negative effect on availability, as it happens unscheduled. This Department struggled to get vehicles back from panel beaters due to various reasons including incorrect documents attached to claims, outstanding authorisations on repairs by Insurance and apparent payment issues. These factors have all negatively contributed to vehicles standing for almost two years without being repaired. Even though numerous follow ups were made on a continuous basis, the process remains problematic and vehicle repairs were not finalised.

4.2.12 No back up or stand by vehicles available to cover when vehicles are in for maintenance or repairs. The Department has no spare capacity available when vehicles assigned to specific stations are send in for repairs. If frontline vehicles are not available for a certain region, the area needs to be covered by other regions thus exposing their own regions. The need for back up vehicles should be prioritised in future to ensure continuous service delivery.

4.2.13 Unavailability of the SAP system during periods over financial year end/ beginning of new financial year creates backlogs. This period usually hampers service delivery due to the backlog that is created with repairs and maintenance which results in vehicles standing for long periods awaiting orders and repairs.

4.2.14 December holiday breaks and closure of City of Tshwane offices The holiday period poses challenges, due to the City of Tshwane under staffing and the closure of its service providers where backlogs with repairs are created, leading to increased downtime and non-availability of vehicles.

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4.2.15 No priority given to Emergency Services with regards to vehicle maintenance and repairs The Department should get priory with regards to vehicle maintenance and repairs due to the nature of the service and should be prioritised as such. Unfortunately, this hasn’t happened and emergency vehicles are handled in the same manner as other City of Tshwane vehicles. Centralised Fleet Management (CFM) should seriously consider assigning a dedicated team of technical experts, including two mechanics on standby to exclusively support the Emergency Services Department Fleet.


Cognisance is taken of the contents of the report. There are no financial implications emanating as a result of this report for the City of Tshwane as the purpose of this report is to inform the Executive Committee about the request received from the Section 79 Oversight Committee: Community Safety to provide feedback on the status of the Emergency Services fleet, as forthcoming from the in loco inspection conducted at the Heuweloord Emergency Services facility. The Group Financial Services Department will render further financial comments on future reports regarding the actions to be put in place to address the challenges mentioned in the report.

5.2 COMMENTS OF THE GROUP HEAD: GROUP HUMAN CAPITAL MANAGEMENT

The report as stated on the purpose is to provide feedback on the status of emergency services fleet within the City. Corporate Fleet Management (CFM) is responsible for the management of fleet in the City including emergency services. This service is rendered based on the model adapted by the City to centralise the function. The report makes reference to the inception of CB54/2013 as the main contributor to the low levels of fleet availability. This is a Public Private Partnership agreement that essentially came into operation in 2016 and will run for 5 years. The City is currently contractually obligated to render these services via this Public Private Partnership agreement unless otherwise reviewed. FleetAfrica is the dedicated service provider to provide managed maintenance services, full maintenance lease as well as workshop upgrades for this category of vehicles (Category E). It is a fact that since the introduction of CB54, there has been a number of challenges regarding the maintenance of vehicles, not only on this category but on the other categories as well. Part of the challenge has been the actual management of the contract. Coupled with that is the fact that the introduction of e-procurement in the process of creating purchase requisitions and issuing purchase orders has also contributed to the delay in processing repairs due to teething problems of the e-procurement system.

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Corporate Fleet Management division has been putting in place corrective measures since January 2017 to ensure that challenges are sorted. These interventions include engagement with the user department in productive meetings where the service provider participates. The steering committee meetings have also been revived and solutions are being found and implemented. The service provider has been instructed to remove vehicles from some of their suppliers where vehicles did not receive high quality service. These challenges have been identified and are being addressed. It is not the centralisation model that is the source of problems, however it is how the model has been perceived by a number of user groups as well as the challenges mentioned above that has contributed immensely in the system facing challenges. If properly managed and championed by all role players and stakeholders, this is a renowned model that can make a difference in the service delivery machinery of the city. The content of the report and its intent are however noted.


SERVICES

The purpose of this report is to inform the Executive Committee of the request received from the Section 79 Oversight Committee: Community Safety to provide feedback on the status of the Emergency Services fleet, as forthcoming from the in loco inspection conducted at the Heuweloord Emergency Services facility. The provisions of section 153 of the Constitution of the Republic of South Africa stipulates that a municipality must structure and manage its administration and budgeting and planning process to give priority to the needs of the local community, and to promote the social and economic development of the community. Having regards to the aforesaid, and with specific reference to the contents of the report, we advise that the report complies with supra mentioned provision of the legislation, and that Group Legal Services supports the recommendations thereof.


None.

6.2 FINANCES

None.


The following legislation and the regulations there-under do have an impact on the mandates of the Emergency Services Department: 6.3.1 The Constitution of the Republic of South Africa, 1996 (Act 108 of 1996). 6.3.2 Fire Brigade Services Act (Act 99 of 1987). 6.3.3 Gauteng Ambulance Services Act, 2002 (Act 6 of 2002). 6.3.4 National Road Traffic Act, 1996 (Act 93 of 1996). 6.3.5 Hazardous Substances Act, 1973 (Act 15 of 1973).

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6.3.6 Disaster Management Act, 2002 (Act 57 of 2002). 6.3.7 Explosives Act, 1956 (Act 26 of 1956). 6.3.8 Occupational Health and Safety Act, 1993 (Act 85 of 1993). 6.3.9 Environmental Conservation Act, 1989 (Act 73 of 1989). 6.3.10 Atmospheric Pollution Prevention Act, 1965 (Act 45 of 1965). 6.3.11 The National Veld and Forest Fire Act, 1998 (Act 101 of 1998). 6.3.12 South African National Standards. 6.3.13 City of Tshwane By Laws.

6.4 COMMUNICATION

The outcome of this report will be communicated to relevant stakeholders. 6.5 PREVIOUS COUNCIL OR MAYORAL COMMITTEE RESOLUTIONS

None. 7. CONCLUSION

The Emergency Services Department, with limited available resources (currently 37% of critical vehicles), are battling to render a professional Emergency Service to the community. The implementation of the new centralised Fleet model since July 2013 and the subsequent implementation of CB 54/2015 unfortunately is not addressing the vehicle availability challenges, nor met the expectations in terms of an improved model. The successful roll out of a vehicle replacement strategy in line with disposal of the assets policy will alleviate the repair and maintenance challenges as experienced and reduce the expenditure on the repair and maintenance general ledger, as well as vehicle downtime and availability.

IT WAS RECOMMENDED (TO THE MAYORAL COMMITTEE: 19 APRIL 2017): 1. That cognisance be taken of the content of the report and submission to the Section

79 Oversight Committee: Community Safety; and 2. That, in future, all Section 79 Committee's requests for reports be directed to the

offices of the Members of the Mayoral Committee or to that of the Executive Mayor. RESOLVED: 1. That cognisance be taken of the content of the report and submission to the Section

79 Oversight Committee: Community Safety; 2. That recommendation 2 be removed; 3. That the Group Head: Shared Services in consultation with the Group Head: Group

Legal and Secretariat Services conducts an assessment of the Public Private Partnership agreement with regard to the Full Maintenance Lease (FML) model utilised by the City;

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4. That the Group Head: Shared Services submits a report on the outcomes of the assessment conducted with regards to the Public Private Partnership agreement of the Full Maintenance Lease (FML) model utilised by the City that is inclusive of alternative options and implementation timeframes be submitted to the Mayoral Committee meeting scheduled for Wednesday, 17 May 2017;

5. That the Group Legal and Secretariat Services stakeholder department comments

be amended by removing the erroneous reference to performance management; 6. That the Member of the Mayoral Committee: Corporate Services in consultation with

the Group Head: Shared Services develops a comprehensive fleet management strategy for the City that includes among others:

• the timeframe for the phasing in of the strategy,

• the maintenance requirements of vehicles;

• an analysis of the benefits of insourcing versus outsourcing;

• the needs departments with regard to the types of vehicles and specifications;

• an analysis of the benefits with regard to ownership of vehicles by the City versus the leasing; and

• the proposed utilisation of the National Treasury tender RT57;

and that a report on the strategy be submitted to the Mayoral Committee meeting scheduled for Wednesday, 17 May 2017.

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Reference No 85996/1 Stephens Notoane (3773) MAYORAL COMMITTEE: 19 April 2017 7. UTILITY SERVICES DEPARTMENT

ACQUISITION OF ADDITIONAL SERVITUDE LAND OVER ERF 29552 FOR THE CONSTRUCTION OF THE 132KV POWER LINE BETWEEN HATHERLEY AND MAMELODI 2 132/11KV PRIMARY SUBSTATIONS (From the Executive Committee: 5 April 2017)

1. PURPOSE

The purpose of the report is to obtain approval for acquiring additional servitude land on Erf 29552 from University of Pretoria for the construction of the 132kV power line between Hatherley and Mamelodi 2 132/11kV primary substations.

2. STRATEGIC OBJECTIVES Provide Sustainable Service Infrastructure and Human Settlement Management.

Vision 2055 Outcome 3: Quality infrastructure development that supports liveable communities.

3. BACKGROUND The Energy and Electricity Department has identified the need to strengthen the 132kV bulk electricity transmission network in Mamelodi to cater for the increasing load and address capacity constraints in the supply area. As part of the undertaking, the department is investing in the construction of 132kv power lines and commissioning of the Hatherley substation. The Hatherley substation is a new substation constructed to supply electricity to the developments in and around Nellmapius and also to assist with alleviating overloading at Waltloo substation. In order to connect the substation to the existing electricity network, a new power line is being constructed between Hatherley and Mamelodi 2 substations. The power line is being constructed over the land mostly belonging to the City and with the some portion belonging to the University of Pretoria. In 2010, the Mayoral Committee approved a report to acquire the servitude over the property belonging to the university based on the preliminary design of the power line route. However, during the construction design it was established that there need to be changes to the power line route which required that an additional land for servitude must be acquired. In order to register the servitude along the route of the power line, an expropriation process must be undertaken by the City to acquire the additional servitude land from the university. The power line servitude crosses over Erf 29552 belonging to the University of Pretoria as indicated by Title Deed TL15022/1995. The affected land owner has been compensated for their land according to the preliminary power line route design and report approved the Mayoral Committee and therefore another approval is required for the expropriation of the extra land for the servitude.

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4. DISCUSSION The preliminary design of the power route and servitude required over Erf 29552, Mamelodi Extension 4 was 1,6363 hectares as indicated in the Geomatics drawing CPD 9/3/1/6, Sheet 2A dated May 2009. This design was taken into account when the negotiations started between CoT and University of Pretoria. The appointed contractor had made a final design according to optimal positioning of the 132kV towers as well as foundation types. Cognisance was also taken of the wayleave approved by GAUTRANS whereby the excavations of the foundations could not be done on the road reserve as the preliminary route was encroaching the road reserve. The contractor was then required to change the designs so that the power route is clear of the road reserve and therefore the route was moved more into the university property. The Energy and Electricity Department requested the CoT’s Geomatics Section to assist with compiling revised servitude sketch plan indicating the new and final servitude size. Geomatics drawing CPD 9/3/1/6, Sheet 2C dated September 2015 indicates the new servitude size to be 1,8362 hectares. Represent an increase of 0,1999 hectares which is the additional servitude land required. Therefore, University of Pretoria needs to be compensated for the additional land required for the power line servitude over their property.


Cognisance is taken of the contents of the report. It is indicated in the report that the expropriation of the property will cost R93 300 and it will be funded from IDP project number: 9.712279.1 (New Bulk Electricity). It is recommended in the report that the Group Legal Counsel be authorised to execute the recommendations of this report, including the signing of the expropriation notice and all relevant documents. The following amounts are available (on 23 January 2017) in the 2015/16 Medium-Term Revenue and Expenditure Framework, that can be utilised for this purpose:

Description

Funding Source

2016/17

R

2017/18

R

2018/19

R

WBS 9.712279.1.015 (New Bulk Electricity)

Borrowings

150 000 000

129 000 000

0

All the documentation relevant to the expropriation must be submitted to the Asset Management Unit for processing the necessary entries in the Asset Register for accounting and administrative purposes. The expropriation transaction must be fully disclosed in the corporate financial statements for the purpose of transparency and to comply with the requirements of GRAP. The Strategic Executive Director: Energy and Electricity Department will therefore also have to submit full particulars to the Executive Director: Financial

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Reporting and Assets to capture the Public Contributions as well as the Gain/Loss on disposal of Property, Plant and Equipment. Following the implementation of SAP Funds Management, the allocated budget in the current financial year 2016/17 is only released on a quarterly basis as per the department’s periodic planning on SAP.


SERVICES PURPOSE The purpose of this report is to obtain approval for acquiring additional servitude land on Erf 29552 from University of Pretoria for the construction of the 132kV power line between Hatherley and Mamelodi 2 132/11kV primary substations. DISCUSSION A Municipality's functions and powers are assigned to a municipality in terms of sections 156 and 229 of the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996). Further to the said functions and provisions, a local authority's power to acquire immovable property is prescribed in section 79(24) of the Local Government Ordinance, 1939 (Ordinance 17 of 1939). The said section 79(24)(i) read as follows: "79 The Council may do all or any of the following things, namely -

(a) subject to the succeeding paragraphs -

(i) hire, purchase, expropriate or in any other manner acquire any movable or immovable property, including a servitude on or a right in immovable property, for the performance or discharge of any function or duty which the Council is in terms of any law authorized or required to perform or discharge;

POLICY The Policy Framework for Alienation and Acquisition which was approved on 29 November 2007 by Council stipulate as follows: "It is common practice to acquire property or servitudes by means of purchase which involves negotiations between a willing seller and a buyer and is governed by the law of contract." The report is legally in order. Group Legal Services supports the recommendations, subject to positive comments from finance.

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None.

6.2 FINANCES

An amount of R93 300.00 will be required for the expropriation of the land. The following cost centre will be utilized for the processing of the payment: Project Number: 9.712279.1 - New Bulk Infrastructure Cost Centre numbers: 219 22 GL Account numbers: 458843 WBS number: 9.712279.1.015.1.G.TUK

6.3 CONSTITUTIONAL AND LEGAL FACTORS These implications will be addressed by the legal department.

6.4 COMMUNICATION

The communication with the affected land owners was carried out and there were no objections.


A report was approved on the 2nd of June 2010, titled the acquisition of powerline and stormwater servitudes over Erf 29552, Mamelodi Extension 4. This report was only covering a servitude extent of 1.6363ha which had to be later amended to 1.8362ha due to the as built design. Therefore this report only caters for the deficit which is 0.2ha (1999 m2).

7. CONCLUSION

It is concluded that the City need to expropriate additional servitude land (0,2hecters) over Erf 29552 for the construction of 132kV power line to strengthen the bulk electricity transmission network in Mamelodi and Nelmaoius areas.

RESOLVED: 1. That approval be granted for the expropriation of the servitude for the construction

of 132kv power line over Erf 29552; 2. That the servitude be registered in the asset register of the City of Tshwane;

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3. That the total sum of R93 000,00 be paid over to the University of Pretoria as compensation for the expropriation and registering of an electrical servitude over their property; and

4. That the Group Head: Group Legal and Secretariat Services or his nominee be

authorised to execute the recommendations of this report, including the signing of the expropriation notice and all relevant documents.

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Reference No 64077/1 Doctor Tshwale (4942) MAYORAL COMMITTEE: 19 April 2017 8. COMMUNITY AND SOCIAL DEVELOPMENT SERVICES DEPARTMENT

GREENING OF SPORT FIELDS PROGRAMME PROGRESS AND EXPENDITURE FOR THE PERIOD FROM 2015/16 TO 2016/17 (From the Executive Committee: 5 April 2017)

1. PURPOSE

The purpose of the report is to inform the Mayoral Committee of the progress and expenditure for the periods 2015/16 and 2016/17 on the Greening of Sport fields Programme.


SO 3: To fight poverty, and build clean, healthy, safe and sustainable communities SO 2: Accelerate higher and shared economic growth and development

3. BACKGROUND

The Greening of Sport fields Programme emanates from the City of Tshwane Sustainability Strategy (Tshwane Future Going Green). The Greening of Sport fields Programme was initiated in the 2012/13 financial year with the objective to construct two (2) basic sport facilities per annum with the following scope of work:

• Artificial pitches – 1 full size or 5 A side courts

• Change rooms and ablutions

• Spectator stands

• Parking and fencing

• Floodlights

• Parking area The following greening projects were successfully completed:

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The Pictorial evidence of the completed Greening of Sport Fields Programme/Project is presented below as follows: The first phase (2012/13) consisted of the following: Mbolekwa Stadium, Atteridgeville (Region 3):

The facility was officially opened in November 2013. Rethabile Sports Ground, Mamelodi East (Region 6)

Western Grounds/SAB Park, Ga-Rankuwa (Region 1)

The facility was officially opened in June 2015. The second Phase (2013/14) consisted of the following:

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Phillip Stadium (Soshanguve) in Region 1

The facility was officially launched on 17 July 2015. Ribane Laka Sports Ground (Mamelodi) in Region 6.

The facility was officially handed over to Region 6 on the 17 December 2014.

4. DISCUSSION

Phase 3 (2015/16) of the Greening of Sport fields Programme consisted of Stinkwater multi-purpose sport facility in Region 2 and the Rethabiseng multi-purpose sport facility in Region 7. The budget requested in 2015/16 financial year for the Greening of Sports Fields Programme was R 20,000,000 but only R 12,000,000 was allocated, which was not sufficient to cover the planned projects namely Stinkwater and Rethabiseng. The allocated R 12,000,000 resulted in a reduced scope of work and only the Rethabiseng project was implemented. Furthermore, Bana Stadium, a Greening project in Mabopane – Region 1, was identified as the Mayor’s executive commitment and implemented under the Re Aga Tshwane Project funding. The project has been completed successfully during 2015/16 financial year.

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Rethabiseng multi-purpose sport facility: Scope of work for 2014/15 to 2015/16:

• Construction of synthetic pitch

• Change rooms and ablutions

• Fencing

• Floodlights

• Parking area

General progress:

• Project completed.

• Fencing completed.

• Pitch completed including earth works and kerbing

• Change rooms/ablutions completed.

• Practical completion was reached by 30 September 2016. Challenges and mitigations:

• Final electrical connection completed.

• Floodlights and hard court upgrading was removed from scope of work due to budget shortfall on contract. Floodlights to be erected after Adjustment Budget approval.

Expenditure information for the 2015/16 financial year:

Expenditure information for the 2016/17 financial year:

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It is worth mention that the budget for the above listed projects was approved and allocated for during the 2015/16 financial year. The payment certificates for the said projects were submitted to finance during June and July 2016 but were not processed due to the closure of payment system. This was not picked up by the financial system and as such was forfeited, leading to an amount of R10 386 363.42 from the 2016/17 Greening Projects funds being utilised to pay for the above mentioned projects.


Cognizance is taken of the contents of the report. It is indicated in the report that payment certificates for the said projects were submitted to Finance during June and July 2016 but were not processed due to the closure of the payment system. The report furthermore states that this was not picked up by the financial system and as such was forfeited, leading to an amount of R10 386 363.42 from the 2016/17 Greening Projects funds being utilized to pay for the above mentioned projects. It should be noted that the payment of the amount indicated above will result in the restatement of the expenditure in the relevant Annual Financial Statements. Furthermore, the non-payment of the outstanding amounts resulted in the City of Tshwane not complying with the following sections of the Municipal Finance Management Act, 2003 (Act 56 of 2003):

• Section 65 (2)(b)(i), recognize expenditure when it incurred;

• Section 65 (2)(e), all money owing by the city be paid within 30 days of receiving the relevant invoice or statement;

• Provisions of section 32 that deals with authorized, irregular or fruitless and wasteful expenditure.

On 5 August 2015 the Mayoral Committee approved a report titled “CITY OF TSHWANE – INVOICES PAID IN 2014/15 WITH A DATE PRIOR TO 30 JUNE 2014”, and the following was resolved:

(2) That any employee that contravenes legislation be charged;

(4) That the City Manager take appropriate action against responsible official for financial misconduct as provided for in the Municipal Systems Act and the misconduct regulations; and

(5) That where departments submit invoices late, the Strategic Executive Director be requested to provide a written explanation to the City Manager.

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5.2 COMMENTS OF THE GROUP HEAD: GROUP LEGAL AND SECRETARIAT SERVICES

The purpose of this report is to inform the Mayoral Committee Cluster of the progress and expenditure for the periods 2015/16 and 2016/17 on the Greening of Sport fields Programme. Section 51 of the Local Government: Municipal Systems Act 32 of 2000 places a duty on the Municipality within its administration and financial capacity to establish and organize its administration in a manner that would enable the Municipality to amongst others, be performance orientated and focused on the objects of local government as embodied in the constitution of the Republic of South Africa to be responsive to the needs of the local community. In terms of Section 11(3) (a) (j) & (n) of the Local Government: Municipal Systems Act 32 of 2000, A municipality exercises its legislative or executive authority by developing and adopting policies, plans, strategies and programs, including setting of targets for delivery, monitoring the impact and effectiveness of any services, policies, programmes or plans and also by doing anything else within its legislative and executive competence. The Municipality is required by the provisions of section 68(1) of the Municipal Systems Act 32 of 2000, to develop its human resource capacity to a level that enables it to perform its functions and exercise its powers in an economical, effective, efficient and accountable way. This report is in compliance with the provisions of Performance Management Policy and Procedure developed by the City of Tshwane (dated 28 August 2008), as required by Regulation 13 of Performance Management Regulations, 2001 published under the Municipal Systems Act 32 of 2000), in terms of which the purpose of reporting or giving feedback is to assist in monitoring, which aims to provide Managers, decision makers and other stakeholders with a regular feedback on the progress made with implementation so that corrective measures may be put into place, where necessary. Section 15 of the Municipal Finance Management Act 56 of 2003 provides that a Municipality may, except where otherwise provided in this Act incur expenditure only in terms of an approved budget and within the limits of the amounts appropriated for the different votes in an approved budget. Having taken regard to the aforesaid and with specific reference to the contents of the report, Group Legal Services Department supports the approval of the report and the recommendations thereof and submit that the report and its Annexures be referred to the Mayoral Committee for their attention and cognisance.


Human resources (EPWP) The Greening project has created the following job opportunities:

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During 2013/14 61 jobs were created. During 2014/15 132 jobs were created. During 2015/16 42 jobs were created. Total number of jobs created up to date: 235

6.2 FINANCES

WBS info: 9.712941.1 Summary of annual budget allocations and expenditure:


None. 6.4 COMMUNICATION

None. 6.5 PREVIOUS COUNCIL OR MAYORAL COMMITTEE RESOLUTIONS

None. 7. CONCLUSION

During the period from 2012/13 to the end of 2015/16 seven Greening projects were completed successfully and are currently five operational. The official launching for Bana and Rethabiseng Stadiums is scheduled for April and May 2017 respectively.

IT WAS RECOMMENDED (TO THE MAYORAL COMMITTEE: 19 APRIL 2017): That cognisance be taken of the progress on the Greening of Sports Fields Programme for the period 2015/16 to 2016/17 and the related expenditure.

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RESOLVED: 1. That cognisance be taken of the progress on the Greening of Sports Fields

Programme for the period 2015/16 to 2016/17 and the related expenditure; and 2. That the Group Head: Community and Social Development Services ensures that

site inspections of the sports fields upgraded be conducted and that these facilities be maintained.

COUNCIL MEETING: 27 JULY 2017 - tshwane.gov.za Calendar/Attachments... · Roadshow which took place...

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