supplementary agenda · 2 days ago · supplementary agenda 15 october 2020 _____ 1 | p a g e...

INTEGRATED HUMAN SETTLEMNTS COMMIITTEE MEETING SUPPLEMENTARY AGENDA

15 OCTOBER 2020

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INTEGRATED HUMAN SETTLEMENTS COMMITTEE MEETING

Thursday, 15 October 2020 at 09:00

ITEM NO SUBJECT PAGE

7.5 IMPLEMENTATION SOUTHERN CAPE CORRIDOR DEVELOPMENT (SCCD) CAPALYTIC PROJECT BUSSINESS PLAN AND FINANCIAL MODELLING

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7.6 MONTHLY UPDATE : AUGUST 2020 - STATUS OF KNYSNA HOUSING CAPITAL PROJECTS FOR THE 2020/21 FINANICIAL YEAR

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8. ADJOURNMENT 39

SUPPLEMENTARY

AGENDA


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7.5

REPORT FROM DIRECTOR : PLANNING & DEVELOPMENT PURPOSE OF THE REPORT To report on Implementation SCCD Catalytic Business Plan and Financial Modelling. BACKGROUND In 2014, National Department of Human Settlements Committed to Identify and implement 50 national priority catalytic projects using different tenure options to deliver mega, high impact integrated and sustainable human settlements that clearly demonstrate Spatial, Social and Economic Integration. In terms of the commitment “the identification and implementation of catalytic projects will align to the Human Settlements Master Spatial Plan and will form part of the outcomes of the MTSF in terms of ensuring Adequate Housing and Improved Quality Living Environments, and will be implemented during the five-year MTSF period (targeting the implementation of 10 projects per year).” This forms the background for the identification of this project which has not been implemented within the specified time frames. The project itself still forms part of the Provincial Steering Committee and its progress is reported at National Level. Between 2016 and 2018, a number of projects have been considered nationally (Private and Public) during submission phases and have undergone criteria assessments and subsequently to implementation by the Housing Development Agency. In 2018 HDA presented the project to Knysna Municipal Council where it was expected that there would be a resolution in respect of Implementation Protocol and Memorandum of Understanding between Knysna Municipality, HDA and Western Cape Department of Human Settlements. To date no resolution, exist in respect of this matter. In the meantime, there has been Provincial Steering Committee meeting held on a quarterly basis to discuss progress in respect of this matter attended by all parties. DISCUSSION HDA in partnership with the three spheres of government identified several potential portion of Land in Knysna and Bitou Municipality and developed a business case for the Southern Cape Corridor Development (SCCD) Catalytic Project proposal, which is the basis for this document. The HDA is mandated by NDHS to be Program Manager of the Catalytic Projects Program (CPP), consistent with the National Development Plan (NDP) 2030 Vision and the Human Settlements Master Spatial Plan (MSP). This role entails providing technical capacity and entering into partnerships with municipalities, provinces and private sector partners to effectively implement the project. In 2018, KMSD Engineering Consultants were appointed by the Housing Development Agency (HDA) to undertake feasibility studies and package a comprehensive business plan and financial model for the proposed Southern Cape Corridor Development (SCCD) Catalytic Project. The SCCD Catalytic Project comprises of fifteen project sites located within the

IHS05/10/2020 IMPLEMENTATION SOUTHERN CAPE CORRIDOR DEVELOPMENT

(SCCD) CAPALYTIC PROJECT BUSSINESS PLAN AND FINANCIAL

MODELLING


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Knysna Local Municipality jurisdiction area. This has been a subject of discussion in the last couple of Provincial steering Committee meeting as per the attached Annexures. Presentation by HDA on 10 October 2019 additional 3 options available for the implementation of this project

Option 1: SPV (Province and HDA) Contracts the developers on both the subsidized & non subsidized housing, commercial, public and social amities For this option, knysna Municipality must sign an MOU/MOA

Option 2: SPV (Province & HDA) Implements the subsidized housing component and contracts developers on the non- subsidized housing, commercial public social amenities. Again an MOU / MOA will be required from the Municipality.

Option 3 : Funder inside the SPV (e.g. DBSA) Requirement from the Municipality is a signed MOU/MOA

Knysna Municipality has not committed to any of the above options as in all of these options. There is a reference to the appointment of Contractors for the implementation of BNG Projects by HDA and Province to which its impact has not been unpacked. The only matter which is clear is with respect to the financial allocation to Knysna Municipality for the implementation of Current and Future identified project. It is required that Western Cape Department of Human Settlement must first confirm impact on Municipal allocation, prior to any Council Resolution to proceed with MOU and IP. Furthermore on implementation of the project the Municipality will have no role whatsoever. The financial model must be presented and unpacked further. Annexure 2 is a letter from wherein, WCDoHS refused an application for purchase of Land Given Knysna Financial situation, and there is no basis currently to act outside the mandate highlighted by WCDoHS. The basis of refusal related to the unavailability of Knysna Municipality who was unable to confirm where municipal HSDG allocation can be sliced. Having perused documentation submitted by HDA, it is clear that the funding requirements for the provision of Bulk Services in Knysna alone as the completion of the document amounted to over 400 million, far above the MIG allocation to the Municipality for any particular financial year. The list of projects included as part of the program includes

Ethembeni, where the municipality has started the implementation of a project which is included in the Business Plan of the Municipality with shortage of land. Land identified has been the adjacent land owned by SANRAL and there has been a request for SANRAL to clarify whether the envisaged project would proceed in any way with no answer at this stage. It is not clear then that this is the project to be taken over by HDA as Knysna Municipality has made strides in the implementation of the project and has an agreement with the Provincial sphere of government for its implementation. Should it be that the land question was resolved, Municipality would have continued with its implementation and conclusion of the project to ensure that all beneficiaries are accommodated.

South River: Again the key issue in respect of this is the attainment of the land parcel for the accommodation of the community of Phelandaba. The community and the Municipality has waited in anticipation for the purchase of this land to enable Knysna Municipality to proceed with normal processes of project implementation. We would expect that the role of HAD in this instance would be the attainment of the Land Parcel and the Municipal would be the implementer on behalf of the Provincial Department of Human Settlements. Whilst the community which is housed under dangerous


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conditions under the power line, the municipality has requested funds for the containerisation in order to relocate these families from the life threatening situation.

Endlovini: Again this is a Land owned by SANRAL to which if Council would be given an authority to plan for the excess communities of Knysna Northern areas, processes would begin. SANRAL only needs to allow Knysna Municipality development rights over this portion of land as the community resides already and the area is within the already developed in Knysna Northern areas.

Heidevallei: This is a Municipal project under implementation between province and the Municipality. The project is under implementation.

Kruisfontein: This project can only take place after 15 years as MTO has already planted on the portion of land.

Concordia: It is unknown where this project is going to be implemented as most projects are under implementation.

Sedgefield infill: This is a current project being implemented by the Municipality, funded by the Provincial Department of Human Settlements.

Social Housing Sites: Council recently resolved to utilise one of its sites for Social Housing Purposes and as such at this stage, the specification document is being drafted.

Rheenendal: Projects in this area are not being implemented due to bulk services capacity that needs to be augmented to cater for current and future needs.

Karatara: Again the implementation of the project is with WCDoHS and implementation cannot be implemented due to Bulk services issue.

Identified sites 1-7: These portions are located outside the defined Urban edge and have no bulk services provided whatsoever. Also majority of them must be purchased from private sellers.

Various issues are clear in respect of this project:

There are contractual and legal implications in respect of some of the projects identified as part of the program which cannot be overlooked.

No assessment in terms of the impact of this project on the Business Plan for Knysna Municipality and How current program will be impacted upon.

It is not clear where the budget for the purchase of Land since the letter from WCDoHS rejected a submitted application.

Catalytic Project by their nature and size impact greatly on Bulk service provision and at this point Knysna Municipality does not have Bulk services provided in the area identified as part of the project.

Financial Model is not clarified.

FINANCIAL IMPLICATION N/A RELEVANT LEGISLATION Housing Act 107, 1997 National Housing Code, 2009 Land use Management Act, 2013 SPLUMA Act, 2013

RECOMMENDATION FROM THE ACTING MUNICIPAL MANAGER That the signing of an MOU between Knysna Municipality, Western Cape Department of Human Settlements and HAD, be approved, subject to the following :


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1. Implementation of the Knysna approved and pipeline projects in terms of the current approved Provincial Business Plan and time lines to be implemented;

2. Knysna budget to be exempted from any adverse transactions related to its program in respect of this project;

3. Current Municipal program be implemented by Knysna municipality being funded by WCDoHS;

4. The following projects which are currently being implemented by Knysna (Ethembeni, Endlovini, Heidevallei, Rheenendal, Karatara, Southrivier and Sedgefield infill continue to be implemented by Knysna Municipality assisted by WCDoHS;

5. HDA ensures acquisition of land from SANRAL for the implementation of Ethembeni, Endlovini and Soutrivier by Knysna Municipality;

6. WCDoHS and NDoHS commits to funding requirements in lieu of the acquisition of the newly acquired land for the implementation of SCCD program;

7. Heidevallei be implemented by Knysna Municipality as per the current agreement with WCDoHS;

8. HDA source its own funding for the implementation of defined project to ensure that Knysna Municipality continue to implements its program;

9. HDA source funding for the augmentation of the bulk services to the amount of almost R500 million in line with the financial model as amended from time to time subject to prior commitments for such acquisition from WCDoHS;

10. HDA proceed with the purchase of Identified sites 1-7 to the value of over R164,435,111 Million as identified as part of the program and present its progress to the Municipality from time to time;

11. HDA in consultation with National Department of Human Settlements source funding for the acquisition, planning and execution on Identified sites 1-7 on mutually agreed terms with Knysna Municipality and WCDoHS;

12. That the identified sites 1-7 be included in the Knysna Spatial Development Framework as Future Residential Expansion areas;

13. Detailed Bulk Services studies be carried out in Consultation with Knysna Infrastructure Services at the expense of HDA to ensure concurrence with the Municipal Sector Plans; and

14. HDA to ensure that Municipal MIG prioritization is not affected in any way in the augmentation of Bulk services estimated to cost almost R500 Million.

APPENDIX / ADDENDUM ANNEXURE A : Letter from WCDoHS in respect of land purchase ANNEXURE B : Presentation by HAD on implementation model File Number : 9/1/215 Execution : Acting Director : Integrated Human Settlements Manager : Integrated Human Settlements


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7.6

REPORT FROM THE DIRECTOR : INTEGRATED HUMAN SETTLEMENTS PURPOSE OF THE REPORT The purpose of this document is to provide specific housing project deliverables attained during first quarter of 2020/21 Financial Year (FY). PREVIOUS RESOLUTIONS In the preceding Committee meeting a report detailing deliverables for the latter quarter of the 2019/20 financial year was tabled and noted by the Committee. BACKGROUND Taking the que from the Committee as previously specified above, a report detailing deliverables per ward was proposed by the Committee, which guided the relevant preparation for this reported on started in prior financial years and the net effect of their implementation is reported. The numbers are therefore compounded as per the latest figures reported by the service providers and verified though periodic site inspections and project meetings. Also critical is to note that this is the second quarter of the Provincial Financial year and the expenditure report is drafted based on Provincial Financial year and not the MFMA Financial year. To date the municipal has spent more than a half of the allocated Budget for 2020/21 FY. DISCUSSION Appended to this document is the Quarterly report for the first quarter of 2020/21 FY with a Business Plan for same funding year’ commitments. This also includes a reviewed and recently aligned draft Business Plan discussed with WC DoHS which await final gazetting by the latter authority. Presently and as was the case in the 2020/21 FY, the following projects are currently in the execution stage and below is a brief progress status of the projects in totality and is not ward based while the attached table deals within it in terms of the respective wards, namely:

1. Vision 2002 (459 units): For the projects that fall under this project, 131 slabs have been completed and the business plan has now been amended to show 131 top structures to be completed in this financial year. This will take place in the following areas

a. Dam se Bos: 65 Slabs have been casted already thus 65 residential units can now be constructed. While this is the case, there are 60 top structures currently being constructed. 20 Top structures are completed and handover to the beneficiaries

b. Concordia East, Bongani and Kannonkop: The business plan covers 15 top structures in this area and the contractor is already on site to deliver these units. 9 top structures are completed and handover to the beneficiaries

IHS06/10/2020 MONTHLY UPDATE : AUGUST 2020 - STATUS OF KNYSNA

HOUSING CAPITAL PROJECTS FOR THE 2020/21 FINANICIAL YEAR


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c. Concordia west, south and Jude se Kamp: The selected servicer provider is busy on site to guarantee supply 51 expected units, come end of the financial year. To date 49 units have been completed.

2. Hlalani: Originally, 50 units have been planned for this financial year. In addition to the 14 slabs are already casted, 12 units are still under construction from 2018/19 financial year thus taking the number of units to be completed to 26. Currently, a contractor has been appointed and is busy with various steps of the project.

3. Qolweni: 41 Double storey units started in 2018/19 financial year are still to be completed before the end of 2020/21 financial year. In addition to current units under construction, a contractor has been appointed for the construction of 132 units. Currently, 132 slabs have been casted and 23 top structures are completed and over to the beneficiaries in this area.

4. Witlokasie: This is a Provincial project identified for the fire victims wherein 56 Top structures are to be constructed in this financial year. The contractor has been appointed and started during the month of August where there were a number of disturbances due to dissatisfaction of the affected community. Towards the end of August, matters on the table were resolved. On the basis of the consultations that took place with the community, the following resolutions were taken:

a. The beneficiaries that previously resided in New Rest are to have their top structures constructed there and it is the same for those that resided in Love Corner;

b. As per the original agreement, a consensus was reached for the construction of double storey units;

c. Ward Councilor and his committee to be given the beneficiary list (ID numbers to be removed from the list)

d. Investigate the age policy of the WCDoHS and submit proposals for further phases of the project;

e. To work through the legitimate structures in dealing with the Project and to meet regularly through the duration of the project.

f. Love Corner to select members to form part of the Fire Victims Committee from their area;

g. A solution (land identification) to be investigated for the remaining families who are not accommodated in the current 56 beneficiaries

5. Ethembeni: In terms of the original as well as the revised business plan, 50 top structures will be constructed. To this end, the contractor is already on site as of August 2019 with various activities. 62 slabs have been casted in this area.

6. Happy Valley: out of the 50 planned for the 2020/21 to 25 slabs are already casted in this financial year.

7. Bloemfontein: The project is proceeding well. The first 75 units are completed and handover to the beneficiaries. Phase 2 of the project is started in October 2019 and the contractor is proceeding well for completion in December 2020.

8. Hornlee: A contractor was appointed for this project and has to date casted 152 slabs. The first 36 top structures are completed and handed over to the beneficiaries. The remaining structures are to be completed in January of 2021.

9. Smutsville/Sizamile (Sedgefield): 3 of the 4 development areas have received Planning Tribunal approval, while the remaining site is going through statutory processes. Funding for the acquisition of land has been approved by WCDoHS and the processes are being finalized.

10. Karatara: Town Planning Layouts are complete for this project. 11. Rheenendal: Provision of bulk services remain outstanding and this area together with

some will be subjected to a bulk infrastructural feasibility study which awaits funding applications to the WC DoHS.

12. Ward Based Council funded Projects


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For the first quarter of 2020/21 financial year, there has not been an implementation of Ward based projects (Wheel Chair ramps, rectifications and Retaining walls) due to financial limitation. While there is finding provision on the speech line items, it is required that re-prioritization exercise is carried and in order to cover some of the most urgent priorities not covered on the approved Budget through the Budget adjustment process. Such Priorities Include:

Geo – technical study for slippery soil in Nekkies (Ward 3) which will require R270 000. 00

Appointment of service provider to prepare and register General Plan for the Areas that were never surveyed covering areas.

Dam se Bos South Oupad Hlalani Nekkies Dam se Bos North Concordia South Kannonkop Khayalethu North And other areas minor amendments through at the Northern areas of

Knysna. The exercise will cost R3.5 Million over 3 years. It is now required that R960 000 be made available.

Land surveyor for ERF boundary Disputes R100 000

Re-routing of Electricity Poles in Ward 4 for Qolweni Project – R700 000

FINANCIAL IMPLICATIONS Reference is made to the attached revised business plan showing that Knysna Municipality had already spent 56.35% of its 2020/21 allocation received from WC DoHS Funding to implement these projects are therefore not from Municipal funds but from Human Settlements Development Grant (HSDG). RELEVANT LEGISLATION The implementation of these projects is guided by the following legislation:

Constitution of the Republic of South Africa

Municipal Finance Management Act

Public Finance Management Act

Municipal Systems Act

Municipal Structures Act

Environmental Management Act.

RECOMMENDATION OF THE ACTING MUNICIPAL MANAGER That the contents of the report in respect of related project implementation of the Knysna Housing Capital Projects for the period ending September 2020 relative to the approved WCDoHS Business Plan 2020/21 financial year, be noted.


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APPENDIX / ADDENDUM Annexure 1. Quarter 1 report July – September Annexure 2. Council Item on Business Plan 2020 August. File Number : 9/1/2/15 Execution : Acting Director : Integrated Human Settlements Manager : Integrated Human Settlements

Execution:


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8. CLOSURE

supplementary agenda · 2 days ago · supplementary agenda 15 october 2020 _____ 1 | p a g e...

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