drakenstein municipality council 31 marc… · mr a adam (executive manager: planning and economic...

DRAKENSTEIN MUNICIPALITY

MINUTES OF AN ORDINARY MEETING OF THE MUNICIPAL COUNCIL HELD IN THE

COUNCIL CHAMBERS, CIVIC CENTRE, BERG RIVER BOULEVARD, PAARL ON

MONDAY, 31 MARCH 2014 AT 14:09.

PRESENT: Councillors (see attached schedule)

Senior Officials: Mr J F Mettler (Municipal Manager)

Ms A de Beer (Executive Manager:

Corporate Services)

Mr D Louw (Executive Manager:

Infrastructure Services)

Mr G Boshoff (Executive Manager:

Community Services)

Mr J Carstens (Chief Financial Officer)

Mr A Adam (Executive Manager:

Planning and Economic

Development)

Mr A V Marais (Snr Manager: Administration

and Legal)

Mr S Sotshede (Chief Audit Executive)

MINUTES: COUNCIL/RAAD/IBHUNGA

31 MARCH 2014

1. CONSIDERATION OF APPLICATIONS BY COUNCILLORS FOR LEAVE OF ABSENCE FROM COUNCIL/COMMITTEE MEETINGS

OORWEGING VAN AANSOEKE DEUR RAADSLEDE VIR VERLOF VAN AFWESIGHEID VAN RAAD/KOMITEEVERGADERINGS

Leave of absence was granted to the following councillors in respect of 31 March

2014:

1. Clr C van der Westhuizen; and 2. Clr A Allom.

2. CONFIRMATION OF MINUTES / BEKRAGTIGING VAN NOTULE

The minutes of the Ordinary Municipal Council meeting held on 26 February 2014 was confirmed as correct.

2.1 IMPLEMENTATION OF COUNCIL DECISIONS

Noted.

3. MINUTES: COMMITTEE MEETINGS / NOTULES: KOMITEEVERGADERINGS

Noted.

4. STATEMENTS AND COMMUNICATIONS BY THE EXECUTIVE MAYOR/DEPUTY EXECUTIVE MAYOR

VERKLARINGS EN MEDEDELINGS DEUR DIE UITVOERENDE BURGEMEESTER/UITVOERENDE ONDERBURGEMEESTER

1. The Executive Mayor reminded councillors of the importance of the upcoming

round of IDP Budget Review meetings and urged councillors to ensure that their constituencies are well represented at these meetings.

2. The Executive Mayor wished all celebrating Easter, a peaceful Easter

weekend.

5. STATEMENTS AND COMMUNICATIONS BY THE SPEAKER

VERKLARINGS EN MEDEDELINGS DEUR DIE SPEAKER

1. The Speaker congratulated councillors who celebrated their birthdays in March. 2. The Speaker explained to councillors the importance of the Prevention and Combatting of Corruption Act to Provincial Government and Drakenstein Municipality. Councillors must at all time adhere to the stipulations thereof.


31 MARCH 2014

3. The Speaker expressed his disappointment with those ward councillors who failed in their duty to arrange ward committee meetings. The reason for the policy adopted by Council, is for the office of the Speaker to report to Provincial Government on the ward committee/public meetings held. Ward Councillors were again requested to ensure that regular ward meetings are arranged. 4. The Speaker reminded councillors of the IDP training and information session that will take place on 1 April 2014 at 14:00 and urged them to attend. 5. The Speaker asked all councillors who have not done so yet, to supply their e- mail address to the Administration for communication purposes. 6. Speaker read a letter to Council on behalf of Mr Deon Louw (Executive Manager: Infrastructure Services) regarding channeling of rainwater into the sewerage networks and requested that this message be conveyed to the community.

5.1 DECLARATIONS OF INTERESTS BY COUNCILLORS

VERKLARINGS VAN BELANGE DEUR RAADSLEDE

No declarations were made.

6. STATUTORY MATTERS / STATUTÊRE SAKE

No statutory matters were considered.

7. CONSIDERATION OF REPORTS BY THE EXECUTIVE MAYOR AND MAYORAL COMMITTEE

OORWEGING VAN VERSLAE DEUR DIE UITVOERENDE BURGEMEESTER EN BURGEMEESTERSKOMITEE

UKUQWALASELWA KWEENGXELO YI EXECUTIVE MAYOR NE MAYORAL COMMITTEE

7.1 ILLEGAL TENANTS/OCCUPANTS IN THE MUNICIPAL RENTAL UNITS

ONWETTIGE HUURDERS/OKKUPEERDERS IN MUNISIPALE VERHURINGSEENHEDE

ABAQASHI ABAHLALA NGAPHANDLE KWEMVUME/UMHLALI KWIZINDLU SIKAMASIPALA EZIRENTWAYO

The Portfolio holder for Human Settlements tabled an amended recommendation on this matter. After extensive discussion the amendment was put to the vote and was carried by 34 votes to 18 votes with 5 abstentions.


31 MARCH 2014

RESOLVED

1. that the illegal status of the tenants/occupants listed in Annexure A to the departmental report, be condoned;

2. that the date of 1 May 2005 reflected in clause 3.7.1.1 of the housing policy be

extended to 1 July 2013; 3. that the tenants as per Annexure B to the departmental report, including the

following tenants, A Ross, Y Petersen and L Peckeur, not be condoned and be referred for eviction investigation;

4. that with regards to Annexure C, no tenant be moved to ordinary flats; 5. that before the signing of agreements with tenants listed in Annexure A and C,

the Housing Department do final deeds search before concluding agreements; and

6. that a progress report on paragraph 3 above be submitted to the next

Community Services Portfolio Committee as a standing item.

Meeting: Council – 31/03/2014 Ref No: 17/5/3/3/1 Coll No: 834421

Submitted by Directorate Community Services Author/s: B Rossouw Referred from: EM&MC 20/2/2014

PAR:

ACTION:

Implement decisions

RESPONSIBLE DEPT:

EM: Community Services

DUE DATE:

7.2 INCEPTION REPORT ON THE REVIEW OF THE DRAKENSTEIN SPATIAL DEVELOPMENT FRAMEWORK (SDF)

AANVANGSVERSLAG: HERSIENING VAN DIE RUIMTELIKE ONTWIKKELINGSPLAN

YOHLAZIWA KWAKHONA KWE - DRAKENSTEIN SPATIAL DEVELOPMENT FRAMEWORK (SDF)

UNANIMOUSLY RESOLVED that the SDF Inception Report be noted.

Meeting: Council – 31/03/2014 Ref No: 15/1/4 Coll No: 832766

Submitted by Directorate: Planning & ED Author/s: A Roelf Referred from: EM&MC 19/3/2014

PAR:

ACTION:

RESPONSIBLE DEPT:

DUE DATE:


31 MARCH 2014

7.3 RENEWAL OF LEASE AGREEMENT – LEASE OF PORTIONS OF THE BUILDING ON A PORTION OF ERF 34 WELLINGTON TO THE WELLINGTON COMMUNITY LEARNING CENTRE AND THE CHURCH OF MACEDONIA

HERNUWING VAN HUUROOREENKOMS – VERHURING VAN GEDEELTE VAN DIE GEBOU OP ‘N GEDEELTE VAN ERF 34 WELLINGTON AAN DIE WELLINGTON GEMEENSKAP LEERSENTRUM EN DIE KERK VAN MACEDONIA

UKUHLAZIWA KWESIVUMELWANO SOKUQESHISA – UKUQESHISWA KWECEBA LESAKHIWO ELIKWI CEBA LIKA ERF 34 EWELLINGTON KWI - WELLINGTON COMMUNITY LEARNING CENTRE AND THE CHURCH OF MACEDONIA

UNANIMOUSLY RESOLVED

1. that in terms of section 34 of the Municipal Asset Transfer Regulations, final

approval be granted for the renewal of the lease of the portion of Erf 34 Wellington in Hospital Street, to the Wellington Community Learning Centre as indicated on Annexure 2 to the departmental report, subject to the standard lease conditions, as well as the following further conditions:- 1.1 The property will be leased at the current subsidized rental of R1239.04

per month, which is calculated at 20% of the market value (VAT excluded, with a 8% escalation per annum included);

1.2 The lease will endure for a period of two (2) years, subject to cancellation of 6 months written notice by the municipality should the property be needed for other purposes;

1.3 No compensation will be payable to the tenant for improvements made,

upon cancellation of the lease;

1.4 The leased area may only be utilized for educational purposes and related activities;

1.5 that the applicant be responsible for the payment of municipal services

(water, electricity and sewerage); and

1.6 that the applicant makes practical arrangements with the Church of Macedonia for access to the property.

2. that in terms of section 34 of the Municipal Asset Transfer Regulations, final

approval be granted for the lease of one class room (±50m² in extent) in the building situated on a portion of Erf 34 Wellington in Hospital Street as indicated on Annexure 2 to the departmental report, to the Church of Macedonia, subject to the normal conditions of lease and the following further conditions:

2.1 the property will be leased at a monthly rental of R250.00 which is

calculated at 20% of the market value (VAT excluded);

2.2 the rental will be payable monthly in advance and the first calendar month rental and pro-rata rental (if any) is payable on signing of the lease agreement;

2.3 the lease will endure for a period of two (2) years, subject to cancellation

of 2 months written notice by the Municipality should the property be needed for other purposes;


31 MARCH 2014

2.4 no compensation will be payable to the tenant for improvements made, upon cancellation of the lease;

2.5 the leased area may only be utilized for church purposes and related

activities;

2.6 the applicant be responsible for the payment of its pro rata share of municipal services (water, electricity and sewerage);

2.7 the applicant vacate the Arendsnes property in Main Street, Wellington

before occupation of this room will be allowed;

2.8 all administrative and legal requirements be adhered to; and

2.9 that the applicant make practical arrangements with Wellington Community Learning Centre for access to the property.

3. that the Infrastructure Services Directorate be requested to install prepaid

electricity on the premises;

4. that tenders not be called for the lease of the said land due to the following reasons:-

4.1 that the Wellington Learning Centre is rendering a key service to the

community by providing and satisfying the educational needs of the community and that the project is supported by the Western Cape Education Department; and

4.2 that the Church needs to be relocated as a matter of urgency as they cannot be accommodated at Arendsnes due to the fact that the Municipality intends to use the property for the purposes as developed.

Meeting: Council – 31/03/2014 Ref No: 15/4/1 (34)W Coll No: 833076

Submitted by Directorate: Corporate Services Author/s: N Marais Referred from: EM&MC 19/3/2014

PAR:

ACTION:

Implement decision

RESPONSIBLE DEPT:

EM: Corporate Services (Properties)

DUE DATE:

7.4 SALE OF A PORTION OF ERF 12319 WELLINGTON (UNREGISTERED CONSOLIDATION OF ERVEN 715 AND 3112 WELLINGTON) TO THE BREYTENBACH CULTURAL CENTRE

VERKOOP VAN ‘N GEDEELTE VAN ERF 12319 WELLINGTON (ONGEREGISTREERDE KONSOLIDASIE VAN ERWE 715 EN 3112 WELLINGTON) AAN DIE BREYTENBACH KULTUURSENTRUM

UKUTHENGISWA KWECABA LIKA ERF 12319 EWELLINGTON (UKUNGABHALISWA KOKUDITYINISWA KUKA ERVEN 715 NO 3112 EWELLINGTON) WELLINGTON TO THE BREYTENBACH CULTURAL CENTRE

The ANC opposed the direct sale of municipal property and argued that the property should be put on tender. The recommendation of the Executive Mayor and Mayoral Committee was put to the vote and carried by 35 votes to 20 votes with 3 abstentions.


31 MARCH 2014

RESOLVED

1. that in terms of section 14 of the Municipal Finance Management Act final approval be granted for alienation of the property situated on Erf 12319 Wellington, (Unregistered consolidation of Erven 715 and 3112 Wellington) (±1603m² in extent) to the Breytenbach Cultural Centre, subject to the normal conditions of sale as well as the following further conditions:

1.1 that the property be sold at a subsidized rate of R104 000.00 (VAT

excluded) which is calculated at 20% of the market value;

1.2 that the purchaser apply for the rezoning of the property from municipal purpose to “Business Zone”, in order to create a uniform property and this application be at the cost of the purchaser;

1.3 that Erf 12319 Wellington be consolidated with Erf 12320 Wellington,

which in turn must be registered in the Deeds Office, by the applicant at own cost;

1.4 that the applicant be liable for all costs related to the transfer of the

subject property, which includes, advertisement, valuation report and costs of the consolidation;

1.5 any alterations/additions/upgrading of any of the services (water, sewer,

stormwater, roads) will be for the applicant’s account. All such work to be in accordance with municipal prescriptions and standards as approved by Municipality;

1.6 that a reversionary clause be registered against the title of the property in

favour of the municipality should the subject property not be used for social, welfare or cultural purposes anymore, or should the applicant intend to sell the property in the future; and

2. that the subject property not be put out on tender as this property was formerly

part of the Breytenbach Trust and the fact that the Centre has a rich history by delivering and promoting arts and cultural activities within the Drakenstein Municipal area.

Meeting: Council – 31/03/2014 Ref No: 15/4/1 (12319 )W Coll No: 833075


PAR:

ACTION:

Implement decisions

RESPONSIBLE DEPT:


DUE DATE:


31 MARCH 2014

7.5 LEASE OF A PORTION OF ERF 19672 PAARL TO MEDICLINIC PAARL FOR PARKING PURPOSES ON A SHORT TERM BASIS

VERHURING VAN ‘N GEDEELTE VAN ERF 19672 PAARL AAN MEDI-CLINIC PAARL VIR PARKERING DOELEINDES OP ‘N KORTTERMYN BASIS

UKUQESHISWA KWECEBA LIKAERF 19672 E PAARL KWI MEDICLINIC PAARL KUSENZELWA INDAWO YOKUMISA IMOTO OKWEXESHANA


1. that in terms of section 34 of the Asset Transfer Regulations approval in principle be granted for the lease of a portion of Erf 19672 Paarl (±1000m² in extent) to Mediclinic Paarl for informal parking purposes, for a period of five (5) months at a market related monthly rental, subject to the normal conditions of lease as well as the following further conditions:- 1.1 the transaction be advertised for objections;

1.2 all administrative and legal requirements must be adhered to;

1.3 a Site Plan be submitted by the applicant prior to the final approval of the

lease indicating the access and exit points to the parking area as well as the layout and number of parking bays. The site plan must also indicate which portion of Erf 19672 Paarl will be used;

1.4 the applicant must provide security on the subject property;

1.5 the portion of Erf 19672 Paarl adjoining the school property must remain

vacant for the use of busses and taxis dropping off and picking up scholars at the school;

1.6 the levelling of the erf, demarcation of the parking bays and the temporary

layout of the parking area will be undertaken by and for the account of the applicant;

1.7 the applicant will not be compensated for any improvements on the site

subsequent to the expiration of the lease period;

1.8 electricity for the installation of two floodlights from the existing lamp poles for security purposes be supplied. All cost incurred in respect hereof will be for the applicant’s account;

1.9 all other conditions as may be required by Council’s technical

departments; 2. that due to the urgency of the matter, applicant be allowed to take occupation of

the subject property from 1 April 2014 at own risk; and


31 MARCH 2014

3. that tenders not be called for the lease of the premises due to the fact that the parking will endure for a short period and a tender process is underway for development of the property.

Meeting: Council – 31/3/2014 Ref No: 15/4/1 (19672)P Coll No: 833070

Submitted by Directorate: Corporate Services Author/s: NC Marais Referred from: EM&MC 19/3/2014

PAR:

ACTION:

Advertise Proposal

RESPONSIBLE DEPT:

EM: Corporate Services (properties)

DUE DATE:

7.6 AMENDMENT OF BY-LAW: RULES OF ORDER REGULATING THE CONDUCT OF MEETINGS OF THE COUNCIL OF THE MUNICIPALITY OF DRAKENSTEIN

WYSIGING VAN VERORDENING: ORDEREËLS WAT VERGADERINGS VAN DIE RAAD VAN DRAKENSTEIN MUNISIPALITEIT REGULEER

UKULUNGISWA KOMTHETHO WEDOLOPHU RULES OF ORDER REGULATING THE CONDUCT OF MEETINGS OF THE COUNCIL OF THE MUNICIPALITY OF DRAKENSTEIN


1. that the enclosed reviewed By-law relating to the Rules of Order Regulating the Conduct of meetings of the Council of the Municipality of Drakenstein, 2014, be approved in principle;

2. that the reviewed by-law be advertised for public comment; and 3. that a further report, including any public comments received be submitted to the Executive Mayor and Mayoral Committee and Council for consideration and final adoption of the amendment of the by-law.

Meeting: Council – 31/3/2014 Ref No: 1/5/2/9 Coll No: 833080

Submitted by Directorate: Corporate Services Author/s: AV Marais Referred from: EM&MC 19/3/2014

PAR:

ACTION:

Advertise proposal

RESPONSIBLE DEPT:

EM: Corporate Services (Legal Services)

DUE DATE:

7.7 LEASE OF THE OLD POLICE STATION BUILDING SITUATED ON A PORTION OF ERF 6136 PAARL TO CHARIS WORSHIP CENTRE

VERHURING VAN DIE OU POLISIESTASIE GEBOU GELEË OP ‘N GEDEELTE VAN ERF 6136 PAARL AAN CHARIS WORSHIP SENTRUM

UKUQESHISWA KWESAKHIWO SESIKHULULO SAMAPOLISA ESIDALA KWICEBA LIKA ERF 6136 E PAARL KWI CHRIS WORSHIP CENTRE

An amended recommendation from the Executive Mayor and Mayoral Committee which provides for the current illegal occupants, except Go Reach to become sub- lessees was tabled. The ANC was of the view that Go Reach should also be allowed to sub-lease. The amended recommendation was put to a vote and carried by 34 votes to 18 and 5 abstentions.


31 MARCH 2014

RESOLVED

1. that in terms of section 34 of the Municipal Asset Transfer Regulations, final approval be granted for the lease of the Old Paarl East Police Station situated on a portion of Erf 6136, Paarl to the Charis Worship Centre on a month to month basis, subject to the following conditions:- 1.1 the property be leased at a rental of R1500.00 per month excluding VAT;

1.2 the lease will commence on 1 April 2014 or the earliest date thereafter on

which vacant occupation can be given, and will endure on a month to month basis until the property is required for redevelopment purposes;

1.3 the lessee will be responsible for the services accounts;

1.4 the lessee be responsible for the security of the premises; and

1.5 one room in the building be retained by the Municipality for Ward

Committee purposes; 2. that the caretaker house be made available for purposes of the proposed

needlework project as requested by the Ward Committee, once the illegal occupants thereof (Go Reach) have been formally evicted;

3. that Charis Worship Centre be allowed to sub-lease some of the rooms to the following organisations and Council continue with eviction orders against Go Reach: Smart People Elto Ladyhawk Aubrey’s Foundation Schoolwear and Sport Association

4. that the Many Smiles Foundation and the church of Pastor Timmie be allowed

to occupy the two separate prefabricated structures and that Charis Worship Centre be allowed to sub-lease the two structures to these organizations since the rooms are not required by the municipality or Charis Worship Centre at this stage; and

5. that tenders not be called for the lease of the property since allocation of the

tender for the proposed redevelopment has already been allocated.

Meeting: Council – 31/03/2014 Ref No: 15/4/1 (6136)P Coll No: 833067


PAR:

ACTION:

Implement decision

RESPONSIBLE DEPT:


DUE DATE:


31 MARCH 2014

7.8 DRAFT REVISED FRAUD PREVENTION POLICY, STRATEGY AND IMPLEMENTATION PLAN

KONSEP GEWYSIGDE BEDROG VOORKOMINGSBELEID, STRATEGIE- EN IMPLEMENTERINGSPLAN

I - DRAFT REVISED FRAUD PREVENTION POLICY, STRATEGY AND IMPLEMENTATION PLAN

RESOLVED that the Revised Fraud Prevention Policy, Strategy and Implementation Plan, be approved.

Meeting: Council – 31/3/2014 Ref No: 512/B Coll No: 781076

Submitted by Directorate: Office of the Municipal Manager Author/s: G Dippenaar Referred from: EM&MC 19/3/2014

PAR:

ACTION:

Implement policy

RESPONSIBLE DEPT:

Chief Internal Audit

DUE DATE:

7.9 DRAFT REVISED ENTERPRISE RISK MANAGEMENT POLICY

KONSEP GEWYSIGDE ONDERNEMINGSRISIKO BESTUURSBELEID

UYILO OLUQWALASELWEYO KWAKHONA KWENKQUBO YOKULAWULWA KOKUFAKWA ENGOZINI KWAMASHISHINI


that Revised Enterprise Risk Management Policy be approved.

Meeting: Council – 31/3/2014 Ref No: 5/12B Coll No: 781067

Submitted by Directorate: Corporate Services Author/s: G Dippenaar Referred from: EM&MC 19/3/2014

PAR:

ACTION:

Implement policy

RESPONSIBLE DEPT:

Chief Internal Audit

DUE DATE:

7.10 RE-CATEGORISATION OF DRAKENSTEIN MUNICIPALITY IN REGARD TO EMPLOYEES SALARIES

HER-KATEGORISERING VAN DRAKENSTEIN MUNISIPALITEIT MET BETREKKING TOT PERSONEEL SALARISSE

UKWAHLULWA KWAKHONA KOMASIPALA WASEDRAKENSTEIN MALUNGA NEMIVUZO YABASEBENZI


1. that the re-categorisation of the municipality to a category 7 municipality as from 01 April 2014, be approved;


31 MARCH 2014

2. that appointments made on T Grades from 01 April 2014 be made on category 7 salary scale;

3. that all currently employed employees be moved to the category 7 T Grades on

the date of the implementation of Task; and 4. that the Council resolution be forwarded to the Provincial JE Audit Committee

for notification.

Meeting: Council - 31/03/2014 Ref No: 2/2/6 Coll No:

Submitted by Directorate: Corporate Services Author/s: A de Beer Referred from:

PAR:

ACTION:

Implement decision

RESPONSIBLE DEPT:

EM: Corporate Services

DUE DATE:

7.11 FIRST DRAFT INTEGRATED DEVELOPMENT PLAN (IDP) 2014/2019 AND THE PROPOSED IDP AND BUDGET REVIEW ROADSHOW ENGAGEMENTS 2013/2014- 2014/2015

EERSTE KONSEP GEÏNTEGREERDE ONTWIKKELINGSPLAN (GOP) 2014/2019 EN VOORGESTELDE GOP EN BEGROTING HERSIENINGSINTERAKSIE PROGRAM 2013/14- 2014/15

UYILO NGOKUHLOLWA KWEPLANI YENKQUBELA EDITYANISWEYO (IDP) 2014/2019 NESINDULULO SOKUHLOLWA KWEEMFANELO ZE ROADSHOW YE IDP NOQINGQO- MALI KA 2013/2014-2014/2015


1. that the First Draft Integrated Development Plan (IDP) be approved; and 2. that the proposed Draft IDP and Budget Review and Feedback Roadshow

programme be approved for implementation.

Meeting: Council - 31/03/2014 Ref No: 2/2/5 Coll No: 834446

Submitted by Directorate: Office of the Municipal Manager

Author/s: J Mettler Referred from:

PAR:

ACTION:

RESPONSIBLE DEPT:

DUE DATE:


31 MARCH 2014

7.12 TENDERS, QUOTATIONS AND CONTRACTS: SUPPLY CHAIN MANAGEMENT: NOTIFICATION OF MONTHLY TENDER AWARDS – JANUARY 2014

TENDERS, KWOTASIES EN KONTRAKTE: VOORSIENINGSKANAAL-BESTUUR: KENNISGEWING VAN MAANDELIKSE TENDER TOEKENNINGS – JANUARIE 2014

IITHENDA,IZINIKI MAXABISO NEENKONTILAKI: ISAZISO SE SUPPLY CHAIN MANAGEMENT SOKUNIKEZELWA KWETHENDA NGENYANGA – JANUWARI 2013


1. that the tenders and contracts that were adjudicated by the Bid Adjudication

Committee for the month of January 2014 be noted; and

2. that the tenders and contracts and the reasons for the awards as recorded by the Accounting Officer in Annexure A to the departmental report, be noted.

Meeting: Council –31/3/2014 Ref No: 9/1/1/5 (SCM 11/2014 Coll No: 830874

Submitted by Directorate: Financial Services Author/s: J Carstens Referred from: EM&MC – 19/3/2014

PAR:

ACTION:

RESPONSIBLE DEPT:

DUE DATE:

7.13 TENDERS, QUOTATIONS AND CONTRACTS FOR THE MONTH OF JANUARY 2014: PROCESSING WRITTEN AND FORMAL WRITTEN QUOTATIONS WHERE THREE QUOTATIONS WERE NOT OBTAINED AND DEVIATIONS AND RATIFICATION OF MINOR BREACHES FROM PROCUREMENT PROCESSES: CONDONATION OF IRREGULAR EXPENDITURE BY COUNCIL

TENDERS, KWOTASIES EN KONTRAKTE VIR DIE MAAND JANUARIE 2014: PROSESSERING VAN SKRIFTELIKE EN FORMELE SKRIFTELIKE KWOTASIES WAAR DRIE KWOTASIES NIE VERKRY WAS NIE EN AFWYKING EN RATIFIKASIE VAN GERINGE OORTREDINGE VAN VERKRYGINGSPROSESSE:KONDONERING VAN ONREËLMATIGE UITGAWES DEUR DIE RAAD

ITHENDA, IZINIKI MAXABISO KUNYE NENKOTILAKI ZENYAKA KA JANUWARI 2014: UKUGQUBEKEKA KOKUBHALA KUNYE NOKUBHALA OKUSEMTHETHWENI KWEZINIKI MAXABISO APHO KUNGANIKWANGA ISINIKI

MAXABISO EZINTATHU KUNYE NOKUNGALANDELI INKQUBO KUNYE NOKULUNGISWA KOKWAPHULWA KWEMITHETHO UNCINCI KWINKQUBO YOKUFUMANA:UXOLELWA KWECHITHO ENXAMNYE NOMTHETHO LIBHUNGA


1. that the deviations and minor breaches from Council’s Supply Chain Management Policy and procurement processes for the month of January 2014 for the amount of R 2 887 133 as set out in the table in the departmental report, be condoned;


31 MARCH 2014

2. that in terms of paragraph 36(2) of the Supply Chain Management Policy, the deviations and the reasons for the deviations as recorded by the Accounting Officer in Annexure A, B, C, D and E attached to the departmental report be noted; and

3. that the Chief Financial Officer records the information in paragraph 1 above in the notes to the annual financial statements for the 2013/2014 financial year as required by legislation.

Meeting: Council – 31/3/2014 Ref No: 8/1/B (SCM 12/2014) Coll No: 825952

Submitted by Directorate: Financial Services Author/s: J Carstens Referred from: EM&MC – 19/3/2014

PAR:

ACTION:

RESPONSIBLE DEPT:

DUE DATE:

7.14 TENDERS, QUOTATIONS AND CONTRACTS: SUPPLY CHAIN MANAGEMENT: NOTIFICATION OF MONTHLY TENDER AWARDS – FEBRUARY 2014

TENDERS, KWOTASIES EN KONTRAKTE: VOORSIENINGSKANAAL-BESTUUR: KENNISGEWING VAN MAANDELIKSE TENDER TOEKENNINGS – FEBRUARIE 2014

IITHENDA,IZINIKI MAXABISO NEENKONTILAKI: ISAZISO SE SUPPLY CHAIN MANAGEMENT SOKUNIKEZELWA KWETHENDA NGENYANGA – FEBRUWARI 2014


1. that the tenders and contracts that were adjudicated by the Bid Adjudication

Committee for the month of February 2014 be noted; and

2. that the tenders and contracts and the reasons for the awards as recorded by the Accounting Officer in Annexure A to the departmental report, be noted.

Meeting: Council – 31/3/2014

Ref No: 8/1/B (SCM 12/2014) Coll No: 825952

Submitted by Directorate: Financial Services

Author/s: J Carstens Referred from: EM&MC – 19/3/2014

PAR:

ACTION:

RESPONSIBLE DEPT:

DUE DATE:


31 MARCH 2014

7.15 TENDERS, QUOTATIONS AND CONTRACTS FOR THE MONTH OF FEBRUARY 2014: PROCESSING WRITTEN AND FORMAL WRITTEN QUOTATIONS WHERE THREE QUOTATIONS WERE NOT OBTAINED AND DEVIATIONS AND RATIFICATION OF MINOR BREACHES FROM PROCUREMENT PROCESSES: CONDONATION OF IRREGULAR EXPENDITURE BY COUNCIL

TENDERS, KWOTASIES EN KONTRAKTE VIR DIE MAAND FEBRUARIE 2014: PROSESSERING VAN SKRIFTELIKE EN FORMELE SKRIFTELIKE KWOTASIES WAAR DRIE KWOTASIES NIE VERKRY WAS NIE EN AFWYKING EN RATIFIKASIE VAN GERINGE OORTREDINGE VAN VERKRYGINGSPROSESSE:KONDONERING VAN ONREËLMATIGE UITGAWES DEUR DIE RAAD

ITHENDA, IZINIKI MAXABISO KUNYE NENKOTILAKI ZENYAKA KA FEBRUWARI 2014: UKUGQUBEKEKA KOKUBHALA KUNYE NOKUBHALA OKUSEMTHETHWENI KWEZINIKI MAXABISO APHO KUNGANIKWANGA ISINIKI

MAXABISO EZINTATHU KUNYE NOKUNGALANDELI INKQUBO KUNYE NOKULUNGISWA KOKWAPHULWA KWEMITHETHO UNCINCI KWINKQUBO YOKUFUMANA:UXOLELWA KWECHITHO ENXAMNYE NOMTHETHO LIBHUNGA


1. that the deviations and minor breaches from Council’s Supply Chain Management Policy and procurement processes for the month of February 2014 for the amount of R 5 348 627 as set out in the table in the departmental report, be condoned;

2. that in terms of paragraph 36(2) of the Supply Chain Management Policy, the

deviations and the reasons for the deviations as recorded by the Accounting Officer in Annexure A, B, C, D, E and F attached to the departmental report be noted; and

3. that the Chief Financial Officer records the information in paragraph 1 above in the notes to the annual financial statements for the 2013/2014 financial year as required by legislation.

Meeting: Council – 31/3/2014 Ref No: 8/1/B (SCM 12/2014) Coll No: 825952

Submitted by Directorate: Financial Services Author/s: J Carstens Referred from: EM & MC -19/3/2014

PAR:

ACTION:

RESPONSIBLE DEPT:

DUE DATE:

7.16 MUNICIPAL FINANCE MANAGEMENT ACT: SECTION 71 MONTHLY BUDGET MONITORING REPORT FOR JANUARY 2014

MFMA MAANDELIKSE BEGROTING MONITERINGSVERSLAG VIR JANUARIE 2014

UMTHETHO WOKULAWULWA KWEZIMALI: ICANDELO 71 INGXELO YOKONGAMELA UHLAHLO LWABIWO MALI LWENYANGA KA JANUWARI 2014

UNANIMOUSLY RESOLVED 1. that it be noted that the variance between the actual operating revenue (R 1,046,700,820) and the pro rata budgeted operating revenue (R 1,076,129,091) have a positive variance of R 29,428,271 or 2.73%;


31 MARCH 2014

2. that it be noted that the variance between the actual operating expenditure (R 863,648,925) and the pro rata budgeted operating expenditure (R 921,032,342) have a positive variance of R 57,383,417 or 6.23%;

3. that it be noted that the variance between the actual and committed capital

expenditure of R 135,369,594 and the pro rata budgeted capital expenditure of (R 172,349,615) realised a positive variance of R36, 980, 021 or 21.46%;

4. that it be noted that the actual and committed capital expenditure of

R 135,369,594 compared with the capital expenditure budget represent a spending percentage of 52.4% after eight months of the financial year;

5. that it be noted that external borrowings amounted to R 582,044,757 as at 28 February 2014 and that it represented 39.07% of Drakenstein’s total

budgeted operating revenue of R 1,489,677,577 for the 2013/2014 financial year;

6. that it be noted that unspent conditional and unconditional grants amounted

to R 48,425,444 during February 2014 taking into account the grant receipts and capital and operating grants utilised during the first seven months of the financial year;

7. that it be noted with concern that provincial government housing department

owes Drakenstein Municipality R 16,783,015 for housing projects (Drommedaris, Siyashlala, Kingston Town and Project 2 Mbekweni) expenditure already incurred at year-end and during the first eight months of the 2013/2014 financial years;

8. that it be noted that the actual employee related cost expenditure of R 236,778,232 compared with the pro rata budgeted expenditure of R 258,436,862 relates to a positive variance of R 21,658,630 or 8.38%; 9. that it be noted with concern that total outstanding debtors as at 28 February

2014 amounted to R 266,801,818 and that 30 days and older debt constitutes 66.34% of total outstanding debtors;

10. that it be noted with concern that domestic consumers owe the municipality

R 159,797,020 or 59.9% of the municipality’s total debtor’s book; 11. that it be noted that outstanding creditors amounted to R 62,020 as at 28

February 2014; 12. that it be noted that the primary bank account of the municipality at Nedbank

had a positive bank balance of R 19,514,073 as at 28 February 2014; 13. that it be noted that the bank reconciliation for February 2014 was done and

that the bank reconciliation closed with a negative cash book balance of R 15,840,975 as at 28 February 2014; 14. that it be noted that the difference between the cash book balance and the

actual bank balance is due to cash received not banked at month end and cheques issued and ACB’s issued not processed and cashed in the bank account; and


31 MARCH 2014

15. that it be noted that total investments in cash and shares amounted to R 143, 512,586 as at 28 February 2014 at the five local banks and Eskom.

Meeting: Council – 31/3/2014 Ref No: 9/1/1/4 Coll No: 833400

Submitted by Directorate: Financial Services Author/s: A Viola Referred from: EM&MC – 19/3/2014

PAR:

ACTION:

RESPONSIBLE DEPT:

DUE DATE:

7.17 LEVYING OF PRE-PAID BASIC CHARGES FOR PREVIOUSLY APPROVED INDIGENT HOUSEHOLD CONSUMERS

HEFFING VAN VOORUITBETAALDE BASIESE KOSTES VIR VORIGE GOEDGEKEURDE DEERNIS HUISHOUDELIKE VERBRUIKERS

UKUHLAWULISWA KWERHAFU YENKONZO ZESISEKO ZE PRE PAID KUMAKHAYA AHLUPHEKAYO AFUMANA IMVUME NGAPHAMBILI

This matter was withdrawn from the agenda.

Meeting: Council - 31/03/2014 Ref No: 9/1/1/4 x16/2/8 Coll No: 834598

Submitted by Directorate: Author/s: Referred from:

PAR:

ACTION:

Re-submit item

RESPONSIBLE DEPT:

CFO

DUE DATE:

7.18 FINANCE: BUDGETS: APPROVAL OF TABLED 2014/2019 MEDIUM TERM REVENUE AND EXPENDITURE FRAMEWORK (MTREF) OPERATING AND CAPITAL BUDGET AND REVENUE STREAM INCREASES

FINANSIES: BEGROTINGS: GOEDKEURING VAN 2014/2019 MEDIUM TERMYN INKOMSTE EN UITGAWE RAAMWERK, OPERASIONELE EN KAPITALE BEGROTING EN INKOMSTE STROOM VERHOGINGS

IMALI: UQINGQO-MALI: UKUVUNYELWA KOLUHLU OLUBEKWELWA U 2014/2019 NGOBUME BENGENISO NENCITHO YEKOTA EPHAKATHI (MTREF) ESEBENZAYO NOQINGQO-MALI OLUYINKUNZI NENGENISO YOMSINGA ONYUKAYO

The Executive Mayor introduced the Tabled 2014/2019 MTREF and delivered the enclosed speech. The recommendation of the Executive Mayor was put to the vote and carried by 35 votes with 23 abstentions.

RESOLVED

1. that the tabled 2014/2019 MTREF’s capital budget expenditure of

R 284,821,140 for the 2014/2015 financial year as well as for the four outer years’ capital expenditure as set out per GFS votes in the table below and in Annexure B of the tabled 2014/2019 MTREF Budget Report, be approved:


31 MARCH 2014

2. that the Wellington Waste Water Treatment Works rehabilitation and extension capital project (phase 1) at the estimated costs of R 69,107,214 over the next three financial years as set out on page 3 of Annexure B to the tabled 2014/2019 MTREF Budget Report, be approved;

3. that it be noted that the Wellington Waste Water Treatment Works rehabilitation

and extension capital project (phases 2 and 3) will need a further R 127,918,789 from year 5 and onwards that brings this capital project to a total value of R 197,026,003 at current cost estimates;

4. that the tabled 2014/2019 MTREF’s capital budget expenditure funding sources

of R 284,821,140 for the 2014/2015 financial year as well as the four outer years’ capital expenditure funding sources as set out in the table below, be approved:

GFS Description

2014/2015

Capital

Budget

2015/2016

Indicative

Capital

Budget

2016/2017

Indicative

Capital

Budget

2017/2018

Indicative

Capital

Budget

2018/2019

Indicative

Capital

Budget

2019/2020

and

Onwards

Needs

Governance and Administration 27,160,000 26,722,800 28,085,756 28,898,879 23,212,176 152,924,596

Executive and Council 15,218,225 14,656,282 16,428,230 16,882,190 10,715,583 928,100

Budget and Treasury Office - - - - - 540,000

Corporate Services 11,941,775 12,066,518 11,657,526 12,016,689 12,496,593 151,456,496

Community and Public Safety 26,727,531 21,381,067 24,084,778 16,886,359 13,912,099 71,778,500

Community and Social Services 2,047,698 2,589,210 1,921,165 3,867,681 2,234,454 642,000

Sport and Recreation 20,454,833 17,361,857 20,528,613 11,678,678 8,420,378 53,215,000

Public Safety 25,000 30,000 35,000 40,000 45,000 8,614,500

Housing 4,200,000 1,400,000 1,600,000 1,300,000 3,212,267 9,202,000

Health - - - - - 105,000

Economic and Environmental Services 53,510,977 41,633,993 43,267,103 46,691,862 33,384,725 74,748,780

Planning and Development 500,000 500,000 500,000 500,000 500,000 1,643,833

Road Transport 53,010,977 41,133,993 42,767,103 46,191,862 32,884,725 73,104,947

Environmental Protection - - - - - -

Trading Services 177,422,632 190,338,105 186,206,968 186,711,365 148,679,465 528,872,620

Electricity 25,750,175 45,157,163 29,086,179 90,482,751 31,653,079 182,814,000

Waste Water Management 77,620,440 62,097,569 64,790,842 34,754,403 40,577,175 155,099,994

Water 57,152,017 72,233,373 73,154,947 55,699,211 70,749,211 183,998,626

Waste Management 16,900,000 10,850,000 19,175,000 5,775,000 5,700,000 6,960,000

Grand Total 284,821,140 280,075,965 281,644,605 279,188,465 219,188,465 828,324,496

2014/2019 MTREF High Level Capital Budget per Government Financial Statistics (GFS) Votes


31 MARCH 2014

5. that it be noted that the R 828,324,496 of the capital programme and identified IDP needs could not be accommodated in the 2014/2019 MTREF Capital Budget of the next five years;

6. that the tabled 2014/2019 MTREF’s operating budget revenue of

R 1,566,469,509 for the 2014/2015 financial year as well as for the four outer years’ operating revenue as set out per GFS votes in the table below, be approved:

Funding Source

Description

2014/2015

Capital

Budget

2015/2016

Indicative

Capital

Budget

2016/2017

Indicative

Capital

Budget

2017/2018

Indicative

Capital

Budget

2018/2019

Indicative

Capital

Budget

2019/2020

and

Onwards

Needs

Own Funds 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,752,309

CRR 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,752,309

External Loans 205,000,000 205,000,000 205,000,000 205,000,000 140,000,000 777,572,187

External Loan 205,000,000 205,000,000 205,000,000 205,000,000 140,000,000 777,572,187

Grants 54,821,140 45,075,965 41,644,605 34,188,465 34,188,465 -

Grants 54,821,140 45,075,965 41,644,605 34,188,465 34,188,465 -

Grand Total 284,821,140 280,075,965 281,644,605 279,188,465 219,188,465 828,324,496

2014/2019 MTREF High Level Capital Budget per Funding Source


31 MARCH 2014

7. that the tabled 2014/2019 MTREF’s operating budget expenditure of R 1,559,513,890 for the 2014/2015 financial year as well as for the four outer years’ operating revenue as set out per GFS votes in the table below, be approved:

GFS Vote Description

2014/2015

Approved

Budget

2015/2016

Indicative

Budget

2016/2017

Indicative

Budget

2017/2018

Indicative

Budget

2018/2019

Indicative

Budget

Governance and Administration (247,669,641) (265,656,884) (283,289,950) (301,899,122) (322,850,902)

Executive and Council (10,669,647) (11,769,191) (12,892,690) (13,964,739) (15,043,993)

Budget and Treasury Office (231,993,059) (248,546,341) (264,686,490) (281,897,901) (301,419,076)

Corporate Services (5,006,935) (5,341,352) (5,710,770) (6,036,481) (6,387,833)

Community and Public Safety (105,596,214) (103,696,840) (111,122,451) (125,757,596) (131,397,324)

Community and Social Services (9,654,967) (10,157,263) (10,857,089) (11,607,878) (12,413,651)

Sport and Recreation (2,793,419) (2,907,761) (3,198,537) (3,518,390) (3,870,229)

Public Safety (17,999,516) (19,799,468) (21,779,414) (23,957,356) (26,353,091)

Housing (75,136,906) (70,819,802) (75,273,610) (86,658,790) (88,743,653)

Health (11,406) (12,546) (13,801) (15,181) (16,699)

Economic and Environmental Services (22,193,339) (6,885,273) (7,573,801) (8,331,181) (9,164,299)

Planning and Development (5,858,008) (6,443,808) (7,088,189) (7,797,008) (8,576,709)

Road Transport (16,335,332) (441,465) (485,611) (534,172) (587,590)

Trading Services (1,191,010,315) (1,290,189,733) (1,393,477,601) (1,510,546,885) (1,630,809,855)

Electricity (830,127,575) (893,111,352) (963,236,446) (1,038,908,410) (1,120,566,625)

Water (157,666,808) (173,433,489) (189,088,551) (204,316,942) (218,786,285)

Waste Water Management (114,725,160) (126,562,771) (134,644,998) (150,473,318) (167,437,105)

Waste Management (88,490,772) (97,082,121) (106,507,606) (116,848,215) (124,019,840)

Total Operating Revenue (1,566,469,509) (1,666,428,730) (1,795,463,804) (1,946,534,783) (2,094,222,380)

Tabled 2014/2019 Medium Term Operating Revenue per GFS Vote


31 MARCH 2014

8. that it be noted that the tabled 2014/2015 operating budget realises a budgeted surplus of R 6,955,619 as set out in the table below;

9. that it be noted that after capital grants are counted back the tabled 2014/2015

operating budget realises a budgeted deficit of R 47,865,521 as set out in the table below;

10. that it be noted, after non-cash expenditure (off-setting depreciation) amounting

to R 53,635,318 (Depreciation costs of R 162,567,658 less capital redemption on external loans R 108,932,338) is taken into account the tabled 2014/2015 operating budget realises a budgeted cash surplus of R 5,769,797 as set out in the table below:


2014/2015

Approved

Budget

2015/2016

Indicative

Budget

2016/2017

Indicative

Budget

2017/2018

Indicative

Budget

2018/2019

Indicative

Budget

Governance and Administration 248,940,392 268,672,366 291,404,830 314,315,486 337,568,479

Executive and Council 48,309,656 52,281,093 56,722,775 61,328,426 66,444,101

Budget and Treasury Office 42,920,269 46,241,087 50,284,602 53,994,086 57,982,416

Corporate Services 157,710,468 170,150,186 184,397,452 198,992,974 213,141,962

Community and Public Safety 248,234,130 255,368,645 272,837,443 296,777,365 313,180,578

Community and Social Services 25,066,962 26,801,134 28,705,656 30,723,689 32,778,720

Sport and Recreation 57,094,343 60,920,461 65,459,164 70,282,408 75,486,520

Public Safety 48,897,537 52,619,275 56,655,228 60,979,325 65,595,202

Housing 111,187,865 108,598,356 115,110,437 127,372,514 131,365,818

Health 5,987,423 6,429,419 6,906,958 7,419,429 7,954,318

Economic and Environmental Services 125,440,928 131,631,364 140,190,773 149,785,693 159,355,486

Planning and Development 33,670,516 34,318,615 35,343,103 37,740,507 40,298,824

Road Transport 91,770,412 97,312,749 104,847,670 112,045,186 119,056,662

Trading Services 936,898,439 1,010,178,081 1,093,453,285 1,180,701,640 1,270,124,672

Electricity 672,014,607 725,699,863 785,305,368 848,396,606 913,690,605

Water 99,386,824 107,313,462 116,340,972 125,841,323 135,740,810

Waste Water Management 89,845,720 95,961,202 104,460,583 112,933,598 120,519,950

Waste Management 75,651,287 81,203,554 87,346,362 93,530,114 100,173,307

Total Operating Expenditure 1,559,513,890 1,665,850,456 1,797,886,331 1,941,580,185 2,080,229,215

Tabled 2014/2019 Medium Term Operating Expenditure per GFS Vote


31 MARCH 2014

11. that it be noted that the budgeted cash surplus will be used to boost Drakenstein’s Capital Replacement Reserve to be utilised for future infrastructure assets investment;

12. that the following tariff increases as set out in the 2014/2015 Tariff List

document for the revenue streams of property rates, fees, charges and tariffs with effect from 1 July 2014, be approved: 12.1 Property rate revenue stream increase of approximately 5.6%;

12.2 Water revenue stream increase of approximately 12.0%; 12.3 Sewerage/sanitation revenue stream increase of approximately 15.0%

to ensure that this economic service’s costs and revenue move towards a break-even point;

12.4 Refuse removal revenue stream increase of approximately 9.7%;

12.5 Electricity revenue stream increase of approximately 5.5% for life line

consumers;

12.6 Electricity revenue stream increase of approximately 7.39% for all other consumers;

12.7 Rental revenue stream increase of approximately 7.5%; and

12.8 Sundry revenue stream increases of 10% as set out in Tariff List.

13. that the following envisaged tariff increases in the revenue streams of property rates, fees, charges and tariffs over the four outer years of the 2014/2019 MTREF period as set out in the table below, be noted:


Audited results

2010/2011

Audited

Results

2011/2012

Audited

Results

2012/2013

2013/2014

Original Budget

2013/2014

Adjustments

Budget

2014/2015

Approved

Budget

2015/2016

Indicative

Budget

2016/2017

Indicative

Budget

2017/2018

Indicative

Budget

2018/2019

Indicative

Budget

Budget and Treasury Office (121,976,070) (125,201,261) (145,298,197) (188,098,662) (177,280,325) (189,072,791) (202,305,254) (214,401,888) (227,903,816) (243,436,660)

Community and Social Services 17,147,072 13,366,756 17,782,108 17,625,272 17,654,337 15,411,996 16,643,871 17,848,567 19,115,811 20,365,069

Corporate Services 102,257,813 119,154,438 120,888,827 123,537,844 142,589,726 152,703,533 164,808,834 178,686,682 192,956,493 206,754,129

Electricity (105,942,099) (75,806,138) (126,413,848) (112,203,075) (158,961,751) (158,112,967) (167,411,489) (177,931,078) (190,511,805) (206,876,020)

Executive and Council 40,794,783 31,909,549 47,621,194 25,571,378 36,843,176 37,640,009 40,511,901 43,830,085 47,363,687 51,400,108

Health 5,053,399 5,071,564 5,345,833 6,110,660 5,342,402 5,976,017 6,416,873 6,893,157 7,404,248 7,937,618

Housing 33,742,091 23,859,466 20,584,053 35,357,310 46,213,987 36,050,958 37,778,554 39,836,827 40,713,723 42,622,165

Planning and Development 20,051,923 24,187,757 24,891,191 23,111,157 23,662,694 27,812,509 27,874,807 28,254,914 29,943,499 31,722,115

Public Safety 20,806,811 23,196,483 25,797,713 27,633,283 27,145,260 30,898,021 32,819,808 34,875,814 37,021,969 39,242,110

Road Transport 67,309,273 74,314,843 76,429,391 70,219,608 76,648,549 75,435,080 96,871,284 104,362,059 111,511,013 118,469,072

Sport and Recreation 43,987,351 43,113,598 46,825,535 50,014,682 48,226,548 54,300,924 58,012,700 62,260,627 66,764,018 71,616,290

Waste Management (21,684,197) (23,886,418) (24,685,671) (11,944,458) (9,900,022) (12,839,485) (15,878,567) (19,161,244) (23,318,101) (23,846,533)

Waste Water Management (34,134,008) (45,666,453) (35,723,767) (17,263,851) (31,894,182) (24,879,440) (30,601,569) (30,184,415) (37,539,719) (46,917,155)

Water (42,962,626) (52,095,996) (62,318,826) (46,846,906) (48,464,785) (58,279,984) (66,120,027) (72,747,579) (78,475,620) (83,045,475)

Operating (Surplus) / Deficit 24,451,518 35,518,188 (8,274,465) 2,824,244 (2,174,387) (6,955,619) (578,273) 2,422,527 (4,954,599) (13,993,165)

Less: Capex Grants 35,607,956 48,261,564 41,968,072 58,639,474 74,549,634 54,821,140 45,075,965 41,644,605 43,432,755 45,328,194

Revised Operating (Surplus) / Deficit 60,059,474 83,779,752 33,693,607 61,463,718 72,375,247 47,865,521 44,497,692 44,067,132 38,478,156 31,335,029

Revised Operating (Surplus) / Deficit = 61,463,718 72,375,247 47,865,521 44,497,692 44,067,132 38,478,156 31,335,029

Less: Depreciation costs = (144,546,882) (155,150,435) (162,567,656) (168,556,685) (177,961,133) (186,528,386) (195,854,805)

98,262,569 98,262,569 108,932,338 127,259,332 126,968,559 142,140,913 136,002,727

Less: Expensed housing inventory = - (17,166,814) - - - - -

Cash Shortage / (Surplus) = 15,179,405 (1,679,433) (5,769,797) 3,200,339 (6,925,442) (5,909,317) (28,517,049)

Tabled 2014/2019 Medium Term Revenue and Expenditure Framework (MTREF) per GFS Vote

Plus: Redemption on external loans that needs to be cash-backed =


31 MARCH 2014

14. that it be noted that the electricity tariffs will also undergo further restructuring through the closing of the gap between the pre-paid and conventional households’ consumer tariffs. The gap will close completely in 2014/2015 to ensure equitable tariffs;

15. that it be noted that the electricity tariffs will also undergo further restructuring

of the notified demand charges for seasonable bulk consumers by introducing a seasonable notified demand charge that would be lower than the normal notified demand charges for bulk consumers;

16. that the annual budget of Drakenstein Municipality for the 2014/2015 financial

year as well as the indicative estimates for the four outer financial years (2014/2015 to 2018/2019) as set out in Schedules A1 to A10 and Schedules SA1 to SA37 in Annexure C to the tabled 2014/2019 MTREF Budget Report, be approved;

17. that the draft Long-Term Financial Sustainability Policy (Appendix 3 to the

tabled 2014/2019 MTREF Budget Report), be approved;

18. that the following reviewed budget related policies with its amendments as attached to the tabled 2014/2019 MTREF Budget Report, be approved:

18.1 Appendix 4: Prioritisation Model for Capital Assets Investment Policy;

18.2 Appendix 5: Property Rates Policy; and

18.3 Appendix 6: Cash and Investment Policy.

19. that all other budget related policies as listed in Table 1 of the tabled

2014/2019 MTREF Budget Report be left unchanged.

Tariff Type 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019

Property rates revenue increase 7.50% 5.80% 5.60% 5.60% 5.60% 5.60% 5.60%

Electricity services revenue increase (life line

consumers) 9.70% 7.00% 5.50% 5.50% 5.50% 5.50% 5.50%

Electricity services revenue increase (other

consumers) 13.03% 7.30% 7.39% 7.39% 7.39% 7.39% 7.39%

Water services revenue increase 16.00% 16.00% 12.00% 10.00% 9.00% 8.00% 7.00%

Refuse removal services revenue increase

(Waste to energy project) 7.05% 7.00% 9.70% 9.70% 9.70% 9.70% 6.00%

Sanitation services revenue increase 7.00% 15.00% 15.00% 15.00% 15.00% 15.00% 14.00%

Rental revenue increase 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50%

Sundry revenue increase 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

2014/2019 MTREF Tariff Increases


31 MARCH 2014

20. that it be noted that Drakenstein’s investments and cash as at

28 February 2014 amounted to R 162,873,653 made up of investments with –

20.1 Nedbank primary bank account (R 19,514,072);

20.2 ABSA investments (R 50,121,852); 20.3 FNB investments (R 4,726,357);

20.4 Investec investments (R 35,873,631);

20.5 Nedbank investments (R 50,267,226); and

20.6 Standard Bank investments (R 2,370,516).

21. that the proposed total cost to municipality expenses for the salary, allowances

and benefits of the Executive Mayor, Speaker, Deputy Executive Mayor, Chief Whip, Mayoral Committee members, Chairperson of MPAC, ordinary councillors, Municipal Manager, Chief Financial Officer and Executive Managers as set out in the tabled 2014/2019 MTREF Budget Report, be noted;

22. that it be noted that Drakenstein Municipality do not have any current service

delivery agreements, including material amendments to existing service delivery agreements, with any service provider who renders any power or function on behalf of Drakenstein Municipality as defined in section 1 of the Municipal Systems Act;

23. that it be noted that Drakenstein Municipality do not have any municipal

entities;

24. that the Municipal Manager in terms of legislation invite the local community through advertisements in the local press to submit representations in connection with the 2014/2015 tabled operational and capital budget as required by the MFMA and the Municipal Systems Act; and

25. that the IDP and budget road show programme be followed in April 2014 as

approved by Council in the IDP review item.

Meeting: Council - 31/03/2014 Ref No: 5/2/2 (2014/2015) Coll No: 834945

Submitted by Directorate: Financial Services Author/s: J Carstens Referred from:

PAR:

ACTION:

RESPONSIBLE DEPT:

DUE DATE:


31 MARCH 2014

7.19 WASTE TO ENERGY: REPORT IN TERMS OF SECTION 78(3) OF THE MUNICIPAL SYSTEMS ACT AND SECTION 120 OF THE MUNICIPAL FINANCE MANAGEMENT ACT

AFVAL-TOT-ENERGIE: VERSLAG INGEVOLGE ARTIKEL 78(3) VAN DIE MUNISIPALE STELSELSWET EN ARTIKEL 120 VAN DIE WET OP MUNISIPALE FINANSIËLE BESTUUR

UKUSUKA KWINKCITHO UKUYA KUMANDLA: INGXELO NGOKWECANDELO 78 (3) YE MUNICIPAL SYSTEMS ACT NECANDELO IZO YE MUNICIPAL FINANCE ACT

This matter was withdrawn from the agenda.

Meeting: Council - 31/03/2014 Ref No: 16/6/B Coll No: 834801

Submitted by Directorate: Infrastructure Services Author/s: R M Brown Referred from: Special EM&MC 27/3/2014

PAR:

ACTION:

RESPONSIBLE DEPT:

DUE DATE:

8. MATTERS FOR CONSIDERATION/INFORMATION

SAKE VIR OORWEGING/INLIGTING

8.1 ANNUAL REPORT OVERSIGHT REPORT 2012/2013

JAARVERSLAG OORSIGVERSLAG 2012/2013

INGXELO YONYAKA YENGXELO YESIPHOSISO 2012/2013


1. that Council, having fully considered the Oversight Report on the Annual

Report 2012/2013 of Drakenstein Municipality, ADOPTS the Oversight

Report;

2. that Council, having fully considered the Final Draft Annual Report 2012/2013,

attached hereto, ADOPTS the Annual Report 2012/2013 without any

reservations;

3. that the Oversight Report 2012/2013 be made public in accordance with

Section 129(3) of the MFMA; and

4. that the Oversight Report on Annual Report 2012/2013 be submitted to the

Provincial Legislature in accordance with Section 132(2) of the MFMA.

Meeting: Council - 31/03/2014

Ref No: 9/12 Coll No: 833451

Submitted by Directorate: MPAC

Author/s: J Matthee Referred from:

PAR:

ACTION:

Implement decision

RESPONSIBLE DEPT:

IDP Unit (G Cain)

DUE DATE:


31 MARCH 2014

8.2 PROPOSED SALE OF UNSERVICED ERVEN 13786 AND 13787 WELLINGTON INDUSTRIAL PARK

VOORGESTELDE VERKOOP VAN ONGEDIENSTE ERWE 13786 EN 13787 WELLINGTON INDUSTRIËLE PARK

ISINDULULO SOKUPHEPHETHWA KWE ERVEN SOSHISHINO ESINGASETYENZISWAYO KWI WELLINGTON INDUSTRIAL PARK


1. that Council notes that the Bid Adjudication Committee resolved as follows: 1.1 that the offer of Dirk Lochner Transport CC to purchase Erven 13686 and 13787 Wellington at the amount of R 200,000.00 (14% VAT excluded) each and the construction of a development thereon to the value of R 3,170,000.00 be accepted, subject to the conditions of tender;

2. that in terms of Section 14 of the MFMA Council resolves:- 2.1 that the subject property is not needed to provide the minimum level of basic municipal services; and 2.2 that the fair market value of the asset and the economic and community value to be received in exchange for the asset has been considered;

3. that in terms of Section 14 of the Municipal Management Finance Act, approval be granted for the alienation of Erven 13786 and 13787, Wellington (±1860m² and ±1861m² respectively) to Dirk Lochner Transport CC at the tendered price of R 200,000.00 each (VAT excluded) for the construction of a development thereon to the value of R 3,170,000.00;

4. that the approval mentioned in paragraph 3 above, be subject to the normal conditions of sale as well as the following conditions:

4.1 The properties hereby sold are zoned for Industrial Purposes and may not be used for any other purposes; 4.2 Transfer of the properties must take place within 12 months from signing the Deed of Sale, failure of which the transaction will lapse; 4.3 The development is subject to the Town Planning Requirements of the Wellington Industrial Park. Membership of the Owners Association of the Industrial Park is compulsory. No offensive industry will be allowed. 4.4 Building plans for the proposed development to the value of

R 3,170,000.00 be submitted within six months from date of signing the Deed of Sale;

4.5 The development of the property be completed within 18 months from date of signing the Deed of Sale;


31 MARCH 2014

4.6 A pre-emptive right be registered against the title of both erven in favour of the Drakenstein Municipality should the successful tenderer intend to sell the undeveloped property or fail to complete the development of the subject property as proposed, within 18 months after approval of the building plans. Should the successful tenderer fail to do so, the Municipality shall be entitled, but not obliged, to take transfer of the property on payment of an amount equal to the purchase price of the property in terms of the Deed of Sale. The cost of the transfer of the property to the Municipality shall be borne by the successful tenderer, provided that he shall be entitled to remove any improvements which he has effected on the property, within a period of three (3) months from the date on which he has been notified by the Municipality of its intention to enforce its rights in terms of this clause. Any improvement not removed timeously by the successful tenderer, shall become the property of the Municipality without the payment of any compensation, provided that the successful bidder shall be liable to the Municipality for any loss suffered because of the successful tenderer’s failure to remove any completed or uncompleted buildings or structures which is considered by the Municipality to adversely affect the usage of the property;

4.7 The erven are sold as unserviced erven and the installation of services to the unserviced erven is the responsibility of each individual owner. Where more than one erf is benefitting from such installation, these owners will have a joint responsibility for these services on a pro-rata basis calculated on the size of the erven. These services also include the upgrading of Oudebrug Street and the installation of the stormwater system. All services shall be installed according to the approved services plan and specifications approved by the Municipality;

4.8 All costs related to the transfer of the property as well as services and

development related costs will be for the applicant’s account;

4.9 All administrative and legal requirements be adhered to;

4.10 Note must be taken of the guidelines contained in the Drakenstein Municipality’s Green Building Manual as well as the objectives for development set out in the Statutory Report of the Provincial Spatial Development Framework, which must be incorporated in the design and layout of the development proposal;

4.11 that the transaction be subject to all the tender specifications and

conditions as set out in the tender document; and

5. that the implementation of the development be properly monitored.

Meeting: Council - 31/03/2014 Ref No: 15/4/1 (13786 & 13787) W Coll No: 835215

Submitted by Directorate: Corporate Services Author/s: N Marais Referred from:

PAR:

ACTION:

Implement decision

RESPONSIBLE DEPT:

Executive Manager: Corporate Services (Properties)

DUE DATE:


31 MARCH 2014

8.3 OORTREDINGS VAN GEDRAGSKODE VIR RAADSLEDE: PERIODE 1 JULIE 2013 TOT DATUM

CONTRAVENTION OF THE CODE OF CONDUCT FOR COUNCILLORS: PERIOD 1 JULY TO DATE

UKWAPHULWA KWEMITHETHO NEMIMISELO YOKUZIPHATHA KO CEBA: UKUSUSELA 1 JULY UKUZA KAMA NGOKU


1. that the report be noted; and

2. that the sanction of a warning with regards to Councillors C Appollis, A Bekeer, L Bolani, Z Gwada, V Hlati, L Landu, S Lumko, T Mangena, V Mbubu, J Mchelm, M Msolo, N Mtiki and M Tshaya for transgressions of the Council’s Rules of Order on 19 June 2013, be confirmed.


Submitted by Directorate: Kantoor van die Speaker Author/s: JF Le Roux Referred from:

PAR:

ACTION:

RESPONSIBLE DEPT:

DUE DATE:

9. CONSIDERATION OF REPORTS, COMMUNICATIONS, PETITIONS AND APPLICATIONS DEALING WITH MATTERS OF URGENCY BY THE MUNICIPAL MANAGER

OORWEGING VAN VERSLAE, MEDEDELINGS, VERSOEKSKRIFTE EN AANSOEKE IN VERBAND MET DRINGENDE SAKE VOORGELÊ DEUR DIE MUNISIPALE BESTUURDER

The Municipal Manager requested that the minutes of item 11.2 of the meeting of 31 January 2014 be amended to correctly reflect on a technicality contained in clause 9 of item 11.2.

UNANIMOUSLY RESOLVED that the minutes of the Council meeting of 31 January 2014 be amended in respect of 11.2 to read as follows:- “11.2 COUNCIL MATTERS: REMUNERATION OF PUBLIC OFFICE

BEARERS ACT (20/1998): DETERMINATION OF UPPER LIMITS OF SALARIES, ALLOWANCES AND BENEFITS OF DIFFERENT MEMBERS OF MUNICIPAL COUNCILS

9. that a data bundle allowance of R3 600 per year (R300 per month) be

approved for each councillor retrospectively as from 1 July 2013”;


Submitted by Directorate: Author/s: Referred from:

PAR:

ACTION:

RESPONSIBLE DEPT:

DUE DATE:


31 MARCH 2014

10. CONSIDERATION OF NOTICES OF MOTIONS AND NOTICES OF QUESTIONS

OORWEGING VAN KENNISGEWINGS VAN MOSIES EN KENNISGEWINGS VAN VRAE

None.

11. SUPPLEMENTARY AGENDA

AANVULLENDE AGENDA

No supplementary items were submitted.

11.1 EXECUTIVE MAYORAL PROJECTS 2013/2014

UNANIMOUSLY RESOLVED that the Ward projects of the following wards be approved:- Ward 21- Soup Kitchen Feeding Scheme and Municipal Soup Kitchen; and Ward 25 – Paving Project and Family Sports day and Women and Child abuse project.

eeting: Council – 31/3/2014 Ref No: 19/17/B Doc No: 836175

Submitted by Directorate: Community Services Author/s: Referred from:

PAR:

ACTION:

Implement decision

RESPONSIBLE DEPT:

Community Services (A Robinson)

DUE DATE:

12. CONSIDERATION OF CONFIDENTIAL MATTERS

12.1 CONFIRMATION OF CONFIDENTIAL MINUTES: 26 FEBRUARY 2014

(See Confidential Minutes.)

12.2 COUNCILLORS OUTSTANDING DEBT REPORT AS AT 28 FEBRUARY 2014

(See Confidential Minutes).


31 MARCH 2014

The meeting ended at 18:00. CHAIRPERSON: …………………………………………………………….. DATE: …………………………………………………………….. Confirmed on ........………...................................................... with/without amendments. PJ/rs

drakenstein municipality council 31 marc… · mr a adam (executive manager: planning and economic...

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