ETHEKWINI NEWS FLASH
 
FOR IMMEDIATE RELEASE
 
13 February 2018
 
Executive Committee Decisions
 
DISCONNECTED SCHOOLS HAVE THEIR POWER RESTORED – MAYOR APOLOGISES FOR DISCONNECTION
 
EThekwini Mayor Zandile was forthright about the issue of schools with outstanding Municipal bills whose services have been disconnected because of non-payment. She said all the schools that have been disconnected have had their electricity restored.
 
Speaking during the City’s Executive Committee meeting today, 13 February, Mayor Gumede said she wanted to apologise to schools including the 30 that were disconnected.
 
“As the Mayor I was not aware of schools being disconnected. Even the Deputy City Manager of Treasury Krish Kumar wasn’t aware of this. We had a meeting with affected schools to better understand what the issues are and we are dealing with the matter,” she said.
 
Mayor Gumede said relevant officials have been tasked to deal with the matter as it cannot be business as usual with these schools.
 
“Krish will deal with the matter and report to me as the Mayor. I want to repeat what I have said previously about the disconnection process, proper protocols need to be followed if people don’t pay for services. As the chair of the Finance Committee I need to know when decisions, especially major decisions like this, are taken by officials. So I want to apologise to schools. The managers of the uMlazi and Pinetown districts are dealing with the issue.”
 
Mayor Gumede added that she would be meeting with Education MEC Khethomthandayo Dlungwana to further discuss this issue.
 
She said poor schools should not suffer by having electricity and water disconnected adding that the acting head of electricity Maxwell Mthembu would also further look into the issue.
 
“I have been told that there is a turnaround strategy. We will also be looking at big businesses who are not paying for services. They cannot be making money and not paying for services. We hope that this will also assist us with debt collection,” she concluded.
 
UPDATE OF CATALYTIC PROJECTS IN THE CITY
 
A presentation on what has been achieved and projects still in the pipeline regarding catalytic projects in the City was given to the Executive Committee at a meeting held today, 13 February, by Deputy City Manager of Economic Development and Planning Phillip Sithole.
 
This included the Keystone Logistics and Business Hub.
 
Sithole said this was one of the major highlights of the City and was an ongoing project. The first phase, which has been completed, has an investment value of R6 billion with 9 000 jobs created. The generated rates per annum is expected to be R15 million.
 
He said phase one was complete which has seen three factories finished. He requested that the Executive Committee pay an oversight visit to the project to see first-hand the impact the development has made.
 
“This project was a catalyst to revive Hammersdale as industries were dying there. Due to this investment we have seen a revival in this area. This project showcases what we want to see happening in the City where there was the participation of local businesses in the project with sub-contracting work given to local business. Jobs were also created,” Sithole said.
 
Speaking on the Point Waterfront Development, he said all approvals were in place.
 
He said the promenade extension, which was a City investment, would be launched in March adding that the contractor was now on site.
 
The investment for the project over the next 10 to 15 years is estimated to be around R30 billion to R35 billion with 11 000 construction jobs and 6 750 permanent jobs to be created. R200 million in rates per annum is expected to be generated.
 
He said further possibilities of the Point Waterfront Development project could include a residential component, the potential for a mall and hotel as well as land sale in progress to accommodate a high-end office park.
 
Regarding the Durban Film City, Sithole said the City was still in negotiations with the Department of Defence regarding the transfer of land to the City so it can then in turn be transferred to Durban Film City.
 
He said however, certain components did not have to wait for the land transfer to be complete, particularly on land already owned by the City.
 
“The developers are ready to start on parcels of land available. Through the intervention of the City Manager Sipho Nzuza we have had several meetings with investors regarding the slow progress and through his intervention we are seeing progress,” Sithole said.
 
The Centrum Site required its own in-depth presentation he said as it was an important site for the City. He said it will help attract investors as well as build investor confidence.
 
It would also serve as a legacy for Council.
 
He said the library would be the first project undertaken with the Supply Chain Management processes (SCM) regarding this development underway.
 
He also touched on the Virginia Airport site and the proposed Durban Iconic Tower.
 
Sithole said the proposal to develop the airport site was an unsolicited bid which was not approved by the Bid Adjudication Committee who stated that it must be an open tender process.
 
“This will be brought back to Council and go out for open tender. There have been media reports that we are doing away with the project which is not true.”
 
Responding to questions about the site and if it could remain an airport Sithole said as it stands the Council decision taken was that it be a high-end mixed use development which remains and would only change if another decision was taken by Council.
 
Sithole said the proposed Iconic Tower would also not go the route of an unsolicited bid and would also be following the open tender route.
 
He said catalytic projects that have been completed include the Amalgamated Beverage Industries, Land Use Strategy C3 Corridor and Westwood Phase one.
 
Projects underway include the Pearls Umhlanga, The Arch, Nedbank Square, Suncoast Casino, Clairwood Logistics Park, Cornubia and Dube Tradeport.
 
EThekwini Mayor Zandile Gumede commended Nzuza for working hard on the SCM processes including the Centrum Site saying “now things were moving.”
 
“We are looking forward to the sod turning event so that the community can see that we are moving. I am happy that these catalytic projects have been clearly defined and that the new Catalytic Projects Office will be running properly because right now it is not a fully-fledged office,” said Mayor Gumede.
 
REVIEW OF TARIFFS FOR REVENUE CLEARANCE CERTIFICATE
 
The Executive Committee tabled a report outlining the revised tariffs for the Revenue Clearance Section that will be implemented with effect from 1 July 2018.
 
The report states that tariffs at the Revenue Clearance Section are to be reviewed annually in terms of Section 75A of the Local Government Municipal Systems Act 2000. The tariffs applicable at the Revenue Clearance Section were last revised on 1 July 2017.
 
It further states that the review of tariffs relating to Revenue Clearance Certificates (RCC) has been undertaken taking into account processes that are involved in issuing a clearance certificate. The manual application requires certain human interactions, including manual checking for compliance, addition administration is involved in rejections, capturing of information onto the system among other functions.
 
Electronic applications by contrast eliminate many of the problems associated with manual application hence a higher charge for processing manual clearance application has to be applied.
 
Therefore an increase of 10 percent for the 2018/19 financial year is proposed.
 
The report states that upon approval of the Revenue Clearance Certificate, the public should be notified accordingly. The Communications Unit will be engaged to publish the process in the relevant newspapers and other media.
 
Therefore, according to the report, the cost of processing an electronic application will be R148 including VAT for properties below or equal to R185 000 and at R237 including VAT for properties above R185 000 in value.
 
The cost of processing a manual application will be R297 including VAT for properties below or equal to R185 000 and R455 including VAT for properties above R185 000 in value.
 
The City Manager will also display a copy of this resolution on the City Hall notice board and other places in the Municipality he may determine while this information will be conveyed to the public through the relevant radio stations. A copy of the notice will also be send to the KwaZulu-Natal Member of the Executive Council responsible for Cooperative Governance and Traditional Affairs as well as a notice being published in the Ezasegagasini Metro newspaper.
 
REVIEW OF VALUATION ROLL TARIFFS
 
A report outlining the review of tariffs relating to the price payable to the eThekwini Municipality for copies of the Valuation Roll in digital format, the issuing of a valuation certificate and fees in respect of a Section 78 Query was tabled at an Executive Committee meeting today, 13 February.
 
The report proposed a 6 percent to increase (rounded up the nearest R10) in the base tariff for the digital Valuation Roll. The tariff inclusive of VAT will be R660. The valuation roll will only be available on a CD in either searchable or PDF format. Printed copies of the valuation roll will no longer be available. The report states that this information is also freely available on the internet.
 
It also states that there will be a 6 percent increase (rounded up the nearest R10) in the base tariff for the digital Supplementary Roll. The tariff will be R170 inclusive of VAT.
 
There will be a 6 percent increase in the base tariff for Valuation Certificates. The tariff including VAT shall be R80.
 
There will also be a 6 percent increase (rounded up the nearest R10) for the base tariff for a section 78 Query for residential properties. The tariff inclusive of VAT will be R490.
 
Furthermore, there will also be an increase in the base tariff for a Section 78 Query for non-residential properties. The tariff inclusive of VAT will be R5 000.
 
REVIEW OF TENDERS ISSUED TARIFFS 2018/19
 
A report on the review of the tariffs relating to the price payable to eThekwini Municipality for copies of the application for tender at various thresholds was tabled at an Executive Committee meeting today, 13 February.
 
The report proposed that a 0 percent increase in the base tariff for tenders issued in the range of R0 to R199 000. The tariff inclusive of VAT shall be R0.
 
The report stated that there will be a 0 percent increase in the base tariff for tenders issued in the range of R200 000 to R1 million. The tariff will be R100 inclusive of VAT.
 
There will be a 0 percent increase in the base tariff for tenders issued in the range of R1 million to R5 million. The tariff inclusive of VAT shall be R250.
 
There will be a 0 percent increase in the base tariff for tenders issued in the range of R5 million to R10 million. The tariff inclusive of VAT will be R500.
 
Furthermore, there will be a 0 percent increase in the base tariff for tenders issued in the range of above R10 million. The tariff inclusive of VAT shall be R1 000.
 
ENDS
 
Issued by the eThekwini Municipality’s Head of Communications Tozi Mthethwa.
 
Please read this confidentiality disclaimer:   http://www.durban.gov.za/Pages/edisclaimer.aspx