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PART II of the agenda of the 48th Council Meeting of the

CITY OF TSHWANE METROPOLITAN MUNICIPALITY (THIRD TERM OF THE CITY OF TSHWANE) will be held in the Council Chamber, Sammy Marks Conference Centre, cnr Lilian Ngoyi and Madiba Streets, Pretoria, on WEDNESDAY, 23 SEPTEMBER 2015 at 10:00 to consider the matters as set out in the agenda hereafter.

REPORTS OF THE MAYORAL COMMITTEE

07/2015 report 1 JULY 2015

AWMK MOSUPYOE-LETSHOLO SPEAKER 14 September 2015

PLEASE RETAIN THIS PART II OF COUNCIL FOR PURPOSE OF THE COUNCIL MEETING OF 23 SEPTEMBER 2015

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COUNCIL AGENDA: CITY OF TSHWANE METROPOLITAN MUNICIPALITY: 23 SEPTEMBER 2015 F. REPORTS TO THE COUNCIL PART II: FROM THE MAYORAL COMMITTEE MEETING: 1 JULY 2015 INDEX

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(The recommendation appears on the page indicated in brackets) 2. Office of the Executive Mayor (Governance Executive Support)

(Corporate Property and Logistical Services) Proposed donation of Erf 7018 Saulsville (Consolidated Erf 146-148 Saulsville) (From the Mayoral Committee: 1 July 2015)…………………………… 3 – 21 (12)

Reference No 47565/1 Dorah Nteo (3948) COUNCIL: 23 September 2015 2. OFFICE OF THE EXECUTIVE MAYOR (GOVERNANCE EXECUTIVE SUPPORT)

(CORPORATE PROPERTY AND LOGISTICAL SERVICES) PROPOSED DONATION OF ERF 7018 SAULSVILLE (CONSOLIDATED ERF 146-148 SAULSVILLE) (From the Mayoral Committee: 1 July 2015)

1. PURPOSE The purpose of the report is to obtain approval to donate Erf 7018, Saulsville (consolidated Erf 146-148 Saulsville) in terms of section 14(2) of the Municipal Finance Management Act (Act 56 of 2003) and MAT Regulations to Uniting Reformed Church in South Africa.

2. STRATEGIC OBJECTIVES

Ensure sustainable, safer communities and integrated social development

3. BACKGROUND

The criterion used to qualify the above-mentioned church for donation is based on the historical occupation for more than Fifty years on site Erf 7018 Saulsville (consolidated Erf 146-148 Saulsville) since March 1964. The Church has applied on 18 July 2014, see the attached application form.

3.1 LEGISLATIVE FRAMEWORK

A. MUNICIPAL FINANCE MANAGEMENT ACT In terms of Section 14 of the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003) approval from Council must be obtained to alienate Municipal land. Section 14 reads as follows: "(1) A municipality may not transfer ownership as a result of sale or other

transaction or otherwise permanently dispose of a capital asset needed to provide the minimum level of basic municipal services.

(2) A municipality may transfer ownership or otherwise dispose of a capital asset

other than one contemplated in sub-section (1) but only after the municipal council, in a meeting open to the public –

(a) Has decided on reasonable grounds that the asset is not needed to

provide the minimum level of basic municipal services; and (b) Has considered the fair market value of the asset and the economic

and community value to be received in exchange for the asset.

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(3) A decision by a municipal council that a specific capital asset is not needed to provide the minimum level of basic municipal services, may not be reversed by the municipality after that asset has been sold, transferred or otherwise disposed of.

(4) A municipal council may delegate to the accounting officer of the municipality

its power to make the determinations referred to in sub-section (2) (a) and (b) in respect of movable capital assets below a value determined by the council.

(5) Any transfer of ownership of a capital asset in terms of sub-section (2) or (4)

must be fair, equitable, transparent, competitive and consistent with the supply chain management policy which the municipality must have and maintain in terms of section 111.

(6) This section does not apply to the transfer of capital assets to another

municipality or to a municipal entity or to a national provincial organ of state ..."

B. MUNICIPAL ASSET TRANSFER REGULATIONS

In terms of the Municipal Asset Transfer (MAT) Regulations published in terms of the MFMA on 22 August 2008, the municipal council must, when considering any proposed transfer or disposal of a non-exempted capital asset in terms of MAT regulation 5(1)(b)(i) and (ii), take into account – (i) Whether the capital asset may be required for the Municipality’s own use at a

later date; (ii) The expected loss or gain that is expected to result from the proposed

transfer or disposal. (iii) The extent to which any compensation to be received in respect of the

proposed transfer or disposal will result in a significant economic of financial cost or benefit to the Municipality;

(iv) The risks and rewards associated with the operation or control of the capital asset that is to be transferred or disposed of in relation to the Municipality’s interests;

(v) The effect that the proposed transfer or disposal will have on the credit rating of the Municipality, its ability to raise long-term or short-term borrowings in the future and its financial position and cash flow;

(vi) Any limitations or conditions attached to the capital asset or the transfer or disposal of the asset, and the consequences of any potential non-compliance with those conditions;

(vii) The estimated cost of the proposed transfer or disposal; (viii) The transfer of any liabilities and reserve funds associated with the capital

asset; (ix) Any comments or representations on the proposed transfer or disposal

received from the local community and other interested persons; (x) Any written views and recommendations on the proposed transfer or

disposal by the National Treasury and the relevant provincial treasury; (xi) The interests of any affected organ of state, the legal and economic interests

and the interests of the local community; and (xii) Compliance with the legislative regime applicable to the proposed transfer or

disposal.

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An approval in principle in terms of regulation 5(1)(b)(ii) that a non-exempted capital asset may be transferred or disposed of, may be given subject to any conditions, including conditions specifying– (i) The way in which the capital asset is to be sold or disposed of; (ii) A floor price or minimum compensation of the capital asset; (iii) Whether the capital asset may be transferred or disposed of for less than its

fair market value, in which case the criteria set out in MAT regulation 13(2) must first be considered;

(iv) a framework within which direct negotiations for the transfer or disposal of the capital asset must be conducted with another person, if the transfer or disposal is subject to direct negotiations.

(v) The full contract in terms of which a municipality transfers a capital asset must be made available in its entirety to the council of the municipality in terms of MAT Regulation 18 and may not be withheld from public scrutiny except as provided for in terms of the Promotion of Access to Information Act, 2000.

C. ALIENATION POLICY

This report complies with the Alienation Policy, as approved on 29 November 2007. The clauses of the policy framework which describe the applicable principle and prescribe the appropriate method of disposal are: 1.6 METHODS OF DISPOSAL OF COUNCIL IMMOVABLE PROPERTY 1.6.7 DISPOSAL OUT OF HAND FOR RELIGIOUS PURPOSES

The Housing, City Planning and Environmental Management will determine the need for religious sites per region/area as part of the spatial Development Framework Strategy.

A church which owns a site in a said region will not qualify to purchase another site within the same region.

In the event there is more than one application on the available site, the CoT will call developments proposals for religious purposes and related community facilities.

4. DISCUSSION Erf 7018, Saulsville (consolidated Erf 146-148 Saulsville) which is 860 m² in extent and it is zoned “Education”. The subject property is situated 27, 25 & 23A Sakweng and Mofokeng Street. Ramokgopa Street is the main street that leads to the subject property.

The donation of this property will be subject to standard conditions of donations applicable to transactions of this nature.

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

Cognisance is taken of the purpose, contents and recommendations of the report. It is indicated that this report complies with Alienation Policy, as approved on 29 November 2007. All aspects of the Municipal Asset Transfer Regulations have to be adhered to. For accounting and administrative purpose it is noted that all the documentation relevant to the donation will be submitted to the Asset Management Unit in the Group Financial Services Department for processing the necessary entries in the Asset Register. All property donation transactions must be disclosed in it’s entirely in the corporate financial statements for the purpose of transparency and to comply with the requirements of GRAP. The Office of the Executive Mayor will therefore have to disclose the expected loss or gain resulting from the proposed donation. The market value for the above-mentioned property, 860 m² in extent, is R60 000. In determining the said market value, it has been assumed that all services are available.

5.2 COMMENTS OF THE CHIEF OF EMERGENCY SERVICES The purpose of the report is to obtain approval to donate Erf 7018, Saulsville (consolidated Erf 146-148 Saulsville) in terms of the Municipal Finance Management Act (Act 56 of 2003) and MAT Regulations to Uniting Reformed Church in South Africa. The Emergency Services Department takes cognisance of the content of the report and further supports the recommendation(s) as set out in the report. Any further structures/buildings being erected on the premises must conform to the provisions of the National Building Regulations and the National Standard: SANS 10400. Communication channels for close liaison between the future developer’s professional team and the operational divisions of this department (Fire Brigade, Emergency Medical Services and Disaster Management) must be established in the planning, construction and commissioning phases of the development, for purposes of the fire protection, fire installation, pre-incident and emergency plans are required.

5.3 COMMENTS OF THE CHIEF OF POLICE

The purpose of the report is to obtain approval to donate Erf 7018, Saulsville (consolidated Erf 146-148 Saulsville) in terms of the Municipal Finance Management Act, 2003 (Act 56 of 2003) and MAT Regulations to Uniting Reformed Church in South Africa. The Tshwane Metro Police Department takes cognisance of the content of the report and further supports the recommendation(s) as set out in the report. It should be noted that the property must be utilised for the purposes as stipulated within the land use zoning for the specific property and access to and from the premises must be provided in accordance with the National Road Traffic Act, 1996 (Act No. 93 of 1996), as amended.

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5.4 COMMENTS OF THE GROUP LEGAL COUNSEL Donation is defined as an agreement whereby a person under no legal obligation undertakes to give something to another, with intention to enrich the said latter, in return for neither consideration nor advantage. Donating immovable property is tantamount to transferring ownership of a capital asset, as contemplated in section 14 of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003). The Municipality is in terms of the provisions of section 14(1), prohibited from transferring ownership of a capital asset needed to provide the minimum level of basic municipal services. The Municipality may, however, in terms of subsection (2) thereof transfer ownership of a capital asset other than one needed to provide the minimum level of basic municipal services in the following process: Accordingly, the Municipal Council must in terms of section 14(2) read with Regulation 5(1) of Municipal Asset Transfer (MAT) Regulations, authorize the transfer or disposal of a non-exempted capital asset only after the Accounting Officer has, in terms of Regulation 6, conducted a public participation process to facilitate the determinations a Municipal Council must make in terms of section 14(2)(a) and (b) of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003). However, the said public participation is compulsory only if the capital asset proposed to be transferred or disposed of is a high value capital asset or if the value of all the capital assets a Municipality intended to be transferred or disposed of by the Municipality this financial year exceeds five per cent of the total value of the Municipality’s assets. In terms of section 14(2)(a) and (b), Municipal Council must first in a meeting open to the public have decided on reasonable grounds that the asset is not needed to provide the minimum level of basic municipal services, and has considered the fair market value of the asset and the economic and community value to be received in exchange for the asset; and then as a consequence of those determinations approve in principle that the capital asset may be transferred or disposed of. Only upon decision of the Municipal Council as aforesaid may the asset be donated. In accordance with Regulation 13(2) of MAT Regulations, if a Municipality on account of the public interest, in particular in relation to the plight of the poor, intends to transfer a non-exempted capital asset for less than its fair market value, the Municipality must, when considering the proposed transfer, take into account: - 1. the interests of the State and the local community; 2. the strategic and economic interests of the Municipality or municipal entity,

including the long-term effect of the decision on the Municipality or entity; 3. the constitutional rights and legal interests of all affected parties; 4. whether the interests of the parties to the transfer should carry more weight than

the interest of the local community, and how the individual interest is weighed against the collective interest; and

5. whether the local community would be better served if the capital asset is transferred at less than its fair market value, as opposed to a transfer of the asset at fair market value.

Having regard to the aforesaid and with specific reference to the contents of the report, Group Legal Services Department submits that:

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1. The properties in question constitute non-exempted capital assets, and the provisions of section 14(1) and (2) of Act 56 of 2003 and those of Regulation 5 and 13 referred to above are applicable;

2. The Municipal Council must consider the provisions of Regulation 13(2) of MAT Regulations, since the proposed disposal is for no value in return;

3. The Municipal Council, when considering the proposed transfer or disposal of these properties through donation, to take into account the following, inter alia,

whether the capital asset may be required for the Municipality's own use at a later date;

the expected loss or gain that is expected to result from the proposed transfer or disposal;

the effect that the proposed transfer or disposal will have on the credit rating of the Municipality, its ability to raise long-term or short-term borrowings in the future and its financial position and cash flow

any limitations or conditions attached to the capital asset or the transfer or disposal of the asset, and the consequences of any potential non-compliance with those conditions;

the estimated cost of the proposed transfer or disposal;

any comments or representations on the proposed transfer or disposal received from the local community and other interested persons; and

any written views and recommendations on the proposed transfer or disposal by the National Treasury and the relevant provincial treasury;

4. The allocation committee as contemplated in Item 1 and 2 on page 201 (Leasing/

Selling of Erven for Religious Purposes) of the Policy Framework for the Alienation and Expropriation of Immovable Property approved by Council on the 29th November 2007 (Annexure to the Supply Chain Management Policy), must have evaluated the beneficiary’s application and recommended the beneficiary in question.

Group Legal Services Department submits that, the report is drafted in compliance with the provisions of Section 14 of the Municipal Systems Act, 2003 and the Municipal Asset Transfer Regulations, and that approval thereof is supported, subject to compliance with the aforesaid provisions of legislation. Finally, it is submitted that the power to donate immovable property is reserved for Council, in terms of Annexure “A” B on page 442/44 of the Corporate System of Delegations approved by Council on the 26th January 2012.

5.5 COMMENTS OF THE STRATEGIC EXECUTIVE DIRECTOR: CITY PLANNING

AND DEVELOPMENT In terms of the Tshwane Town Planning Scheme, 2008 Erf 7018 is zoned "Educational", and a 'Public Place of Worship" is a primary right. The City Planning and Development Department supports the devolution of this property for purposes of a 'Public Place of Worship". However it is imperative that the applicant adheres to all the conditions of the Tshwane Town Planning Scheme, 2008 particularly the parking requirements.

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5.6 COMMENTS OF THE STRATEGIC EXECUTIVE DIRECTOR: ECONOMIC DEVELOPMENT The application to alienate (by donation) Erf 7018 Saulsville, zoned “Educational” measuring 860m² to the Uniting Reformed Church in South Africa is supported only if the post-alienation use is for religious purposes.

5.7 COMMENTS OF THE STRATEGIC EXECUTIVE DIRECTOR: ENVIRONMENTAL

MANAGEMENT SERVICES The Department has no objections to the application from environmental management and open space management perspective. Notwithstanding the above, all other relevant National, Provincial and CoT legislative and policy requirements pertaining to the proposed development must be met including where necessary the undertaking of Environmental Impact Assessment and acquisition of Environmental Authorisation in terms of the National Environmental Management Act (NEMA) from the Gauteng Department of Agriculture and Rural Development as well as Waste Management Bylaws.

5.8 COMMENTS OF THE STRATEGIC EXECUTIVE DIRECTOR: HEALTH AND

SOCIAL DEVELOPMENT The Health and Social Development Department takes note of the contents of the report and its recommendations. The Department however advises that should a building or any structure be developed on the premises, no activity in the building should emit noise that is audible beyond the boundaries of the premises. Any activity generating noise should be monitored in line with the stipulations of the Noise Control Regulations. Furthermore during operationalization of the above mentioned property all health regulation and by laws should be adhered to.

5.9 COMMENTS OF THE STRATEGIC EXECUTIVE DIRECTOR: HOUSING AND

HUMAN SETTLEMENTS Application for the proposed donation of Erf 7018 Saulsville (consolidated Erf 146 - 148 Saulsville), measuring 860m2, zoned "Education" to Uniting Reformed Church of South Africa is supported.

5.10 COMMENTS OF THE STRATEGIC EXECUTIVE DIRECTOR: SERVICES

INFRASTRUCTURE 5.10.1 ENERGY AND ELECTRICITY

1. Tshwane Energy and Electricity has no objection to the application. 2. Should an electricity supply be required at any future stage which is capacity

wise in excess of the allotment or the existing connection, a bulk service contribution and connection fee will be payable.

3. Any removal, moving and/or change to the existing electrical network that may become necessary due to this application, will be for the applicants cost.

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5.10.2 WATER AND SANITATION The application is supported. Water is available and the applicant may apply for a water connection at any of the One-Stop-Service-Desks for Water- and Sanitation Services. The contact numbers are 012- 358 7983/7978/7984. Municipal sewer is also available. Should a sewer connection be required for this application at any OTHER point along the boundaries of the property, all resulting costs to provide a sewer connection point as well as all costs incurred as a result of the protection by servitude / moving / provision of a private or municipal sewer necessitated by such application shall be for the account of the applicant. Such sewer and connection must be designed by a Consulting Engineer and installed by a suitably qualified private plumbing contractor under the Engineer’s certified supervision. Information and specifications are available from any of the One-Stop-Service-Desks for Water and Sanitation Services.

5.11 COMMENTS OF THE STRATEGIC EXECUTIVE DIRECTOR: SPORT AND

RECREATIONAL SERVICES The Section Sport, Recreation, Arts, Culture and Library Services has no objection against the Proposed Donation of Erf 7018 Saulsville (Consolidated ERF 146-148 Saulsville), therefore it is fully supported.

5.12 COMMENTS OF THE STRATEGIC EXECUTIVE DIRECTOR: TRANSPORT

The application to donate to donate Erf 7018, Saulsville (consolidated Erf 146-148 Saulsville) to Uniting Reformed Church in South Africa in terms of the Municipal Finance Management Act (Act 56 of 2003) and MAT Regulations to Holy Cross Catholic Church., is in order for this Division. A complete Site Development Plan must be submitted before any building construction may commence, at the cost of the applicant, for the approval of the Division: Transport and Infrastructure Planning. Details regarding access, parking layout and storm water drainage must be clearly shown on the Site Development Plan.

5.13 COMMENTS OF THE WARD COUNCILLOR: WARD 68

I Councillor T.V. Rambau have no objection to the donation of the above mentioned property in my ward. Approval Conditions if any: The affected 3 erfs, namely erf no’s 146,147 and 148 Saulsville are currently being consolidated and occupied by a church. The said-church has been there for some years, established back around 1960’s or before. I therefore recommend donation of these consolidated sites to the same church that is currently occupying it and that is Uniting Reformed Church of South Africa.

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6. IMPLICATIONS 6.1 HUMAN RESOURCES

None

6.2 FINANCES

Refer to comments of the Chief Financial Officer.

6.3 CONSTITUTIONAL AND LEGAL FACTORS

Refer to paragraph 3.1, in the LEGISLATIVE FRAMEWORK paragraph for the applicable terms of Section 14 of the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003), as quoted.

6.4 COMMUNICATION

Notice of the donation envisaged in recommendations will be given in terms of section 79(18) of the Local Government Ordinance, 1939 (Ordinance 17 of 1939). Should any objections to or representation in respect of the proposed donation be received, the proposed donation together with such objections and/or representation, will be submitted to the Council for consideration and a final decision.

6.5 PREVIOUS COUNCIL OR MAYORAL COMMITTEE RESOLUTIONS

None

7. CONCLUSION

All comments of the relevant Departments show that the above mentioned property is not required for basic municipal purposes. This department confirms that conditions laid down by the departments have been incorporated in the recommendations.

ANNEXURES: A. Supporting Documents Erf 7018 Saulsville B. Erf 7018 Saulsville Application C. Valuation Report

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The Mayoral Committee on 1 July 2015 resolved to recommend to Council as set out below: RECOMMENDED: 1. That Erf 7018, Saulsville (consolidated Erf 146-148 Saulsville) which is 860 m² in

extent is not required for basic municipal services; 2. That Council approves the donation of Erf 7018, Saulsville (consolidated Erf 146-

148 Saulsville) measuring 860 m² in extent to Uniting Reformed Church in South Africa;

3. That notice of the donation envisaged in recommendation will be given in terms of

section 79(18) of the Local Government Ordinance, 1939 (Ordinance 17 of 1939). Should any objections to or representation in respect of the proposed donation be received, the proposed donation together with such objections and/or representations, will be submitted to the Council for consideration and a final decision. Should no objections and/or representations be received, the process be proceeded with in term of the municipality’s Alienation Policy;

4. That any further structures/buildings being erected on the premises must conform to

the provisions of the National Building Regulations and the National Standard: SANS 10400;

5. That all other relevant National, Provincial and CoT legislative and policy

requirements pertaining to the proposed development must be met including where necessary the undertaking of Environmental Impact Assessment and acquisition of Environmental Authorisation in terms of the National Environmental Management Act (NEMA) from the Gauteng Department of Agriculture and Rural Development as well as Waste Management Bylaws;

6. That any activity generating noise should be monitored in line with the stipulations

of the Noise Control Regulations, furthermore during operationalization of the above mentioned property all health regulation and by laws should be adhered to;

7. That it should be noted that the property must be utilised for the purposes as

stipulated within the land use zoning for the specific property and access to and from the premises must be provided in accordance with the National Road Traffic Act, 1996 (Act No. 93 of 1996), as amended;

8. That should an electricity supply be required at any future stage which is capacity

wise in excess of the allotment or the existing connection, a bulk service contribution and connection fee will be payable;

9. That any removal, moving and/or change to the existing municipal services that

may become necessary due to this application, will be for the applicants cost; 10. That sewer and connection must be designed by a Consulting Engineer and

installed by a suitably qualified private plumbing contractor under the Engineer’s certified supervision. Information and specifications are available from any of the One-Stop-Service-Desks for Water and Sanitation Services;

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11. That a complete Site Development Plan must be submitted before any building construction may commence, at the cost of the applicant, for the approval of the Division: Transport and Infrastructure Planning. Details regarding access, parking layout and storm water drainage must be clearly shown on the Site Development Plan;

12. That the Group Legal Counsel be authorised to issue and sign a Power of Attorney

to bring into effect the above recommendation; and 13. That the Municipality’s further conditions of donation usually applicable to

transaction of this nature and the conditions embodied in this be set out as conditions of donation.

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