Municipal Structures Amendment Bill; Municipal Systems Bill: discussion & voting

Meeting report

LOCAL AND PROVINCIAL GOVERNMENT PORTFOLIO COMMITTEE
15 September 2000
MUNICIPAL STRUCTURES AMENDMENT BILL; MUNICIPAL SYSTEMS BILL: CONSIDERATION & VOTING

Relevant Documents:
- Municipal Structures Bill
- Proposed amendments to the Local Government: Municipal Systems Bill
Local Government: Municipal Systems Bill [B 27 - 2000]
- Proposed Preamble and amendments to Clause 62, Clause 72, clause 73, clause 83(2)(vi), clause 83 (3), clause 87, clause 89 (2), clause 92, Clause 105, and regarding Transitional Arrangements (see Appendix 1)

Chairperson: Mr Y Carrim

SUMMARY
The Local Government: Municipal Structures Amendment Bill, as amended, was voted on and passed. The IFP abstained from voting.

The Committee agreed to last minute amendments to certain clauses of the Local Government: Municipal Systems Bill. The Chairperson said the Committee would get legal experts to say whether what they intended in policy is what finally appears in the Bill. The Municipal Systems Bill was passed with the NNP and DP (Democratic Alliance) abstaining.

MINUTES
Local Government: Municipal Structures Amendment Bill
The Chairperson, Mr Carrim, read aloud the Motion of Desirability. It was agreed to by the Committee.

The Committee then voted on the Bill, clause by clause. Each clause was agreed to.

The Committee then moved for the Bill as amended as a whole.

There were no objections.

The IFP, represented by Mr P Smith, abstained.

Local Government: Municipal Systems Bill
The Chairperson said he would solicit expert opinion to see whether what was intended in policy is what finally appears in this Bill.

The DP said they would like included in the Bill that councillors who owe rates and levies should not be allowed to stand.

Mr Bhabha (ANC) said he would like the matter to be included in the Bill but since it limits rights of citizens to contest elections the Constitution does not allow it. The proposal would instead be sent to the Constitutional Review Committee.

On subclause 85 (3) Ms J Manche of the Department said she wanted to convey that there is going to be further legislation on the issue of competitive bidding.

The committee looked at the outstanding issues prior to voting on the Bill:

Preamble
The Committee agreed on a Preamble to the Bill (see relevant document).

The Committee had agreed to all other clauses except for the following clauses:
Clause 62, clause 72, clause 73, clause 83(2)(vi), clause 83 (3), clause 87, clause 89 (2), clause 92, and clause 105. A short adjournment was taken to enable the drafters to formulate the requisite amendments in the clauses. The amendments were agreed to as follows:

Clause 62
The existing clause was replaced with the following:

Certain delegations restricted to executive committees or executive mayors
62(1) The following powers may within a policy framework determined by the municipal council be delegated to an executive committee or executive mayor only:

(a) decisions to expropriate immovable property or rights in or to immovable property; and
(b) the determination or alteration of the remuneration, benefits or other conditions of service of the municipal manager or managers directly responsible to the municipal manager.

The following subclause will also be added:

62(2) The council may only delegate to an executive committee or executive mayor or chief financial officer decisions to make investments on behalf of the municipality within a policy determined by the Minister of Finance.

Clause 72A
A new clause was inserted after Clause 72:

Bargaining Council Agreement
72A Municipalities must comply with any collective agreement concluded in the bargaining council established for municipalities by organised local government within its mandate on behalf of local government.

Clause 73
Subclause (1) was replaced with the following:

(1) The Minister may, subject to applicable legislation and after consultation with the bargaining council established for municipalities, for the purposes of this chapter -
(a) Make regulations to regulate the following matters:
(i) the procedure to be followed in appealing against decisions taken in terms of delegated powers and the disposal of such appeals;
(ii) the suspension of decisions on appeal;
(iii) the setting of uniform standards for:
(aa) municipal staff establishments;
(bb) Municipal staff systems and procedures and matters that must be dealt with in such systems and procedures; and
(cc) any other matter concerning municipal personnel administration.

(iv) capacity building within municipal administrations;
v) training of staff members of municipalities, including in-house training, subject to the requirements of the Skills Development Act. 1998 (Act no. 81 of 1998) and the Skills Development Levies Act, 1999 (Act no. 28 of 1999);
vi) any other matter that may facilitate the application of this chapter; or

b) issue guidelines to provide for the following matters:
(i) the establishment of job evaluation systems;
ii) the regulation of remuneration and other conditions of service of staff members of municipalities, subject to applicable labour legislation;
(iii) the measuring and evaluation of staff performance;
(iv) the development of remuneration grading and incentive
frameworks for staff members of municipalities.
(v) corrective steps in the case of substandard performance by staff members of municipalities; and
(vi) any matter that may facilitate the implementation by a municipality of an efficient and effective system of personnel administration.

Clause 83
- In subclause (2)(a)(vi) after "service fees' to insert "for its own account".
- Subclause (3) was replaced with the following:
The municipal council has the right to set, review or adjust the tariffs within its tariff policy. The service delivery agreement may provide for the adjustment of tariffs by the service provider within the limitations set by the municipal council.

Clause 87A
A new clause was inserted after Clause 87:

Policy framework for internal municipal service district
87A (1) A municipality must develop and adopt a policy framework for the establishment, regulation and management of an internal municipal service district.

2) Such a policy framework must reflect at least the following:
(a) The development needs and priorities of designated parts of the municipality that must be balanced against that of the municipality as a whole;
(b) the extent to which the establishment of one or more internal municipal service districts-
i) must promote the local economic development of the municipality as a whole;
(ii) must contribute to enhancing social, economic and spatial integration of the municipality; and
(iii) may not entrench or contribute to further disparities in service provision.

Clause 89
The following subclause was added with the existing clause becoming subclause (1):

"(2) The municipalities that receive a request in terms of subsection (1) must, within two months of receiving such request, decide whether to accede to the request and convey their decision to the Minister."

Clause 92
- In subclause (1 )(a) to delete "except the setting of tariffs".
- After paragraph (g) of subclause (2) to add the following paragraph:
(h) set, review and adjust tariffs within the policy framework approved by the participating municipalities.

Clause 105
- The following paragraph was inserted after paragraph (k):
(l) regulate the development and implementation of an indigent policy.

Transitional Arrangements
The Committee considered the proposed amendments relating to transitional arrangements. The Chairperson said he had discussed the amendments with Ms Manche and they were of the view that there should be no time frame on the provisions.

It was agreed after the words "phase in" to omit "over a period not exceeding 10 years as from the date this Act takes effect in terms of section 125,".

The Chairperson said he could not see why under the heading "Option 2" the transitional arrangements should apply to Chapters 2 and 9 of the Bill. It was agreed that the provision would not be inserted in these chapters.

The Committee agreed that the headings "Option 1" and "Option 2" should be removed and both amendments be included in the Bill.

A few incidental print errors and consequential amendments were pointed out, for example, the provisions of subclause 95(i) to (p) have to be deleted.

Voting:
The Chair put the motion of desirability before the Committee and it was agreed to.

Due to the comprehensive manner in which the Committee had been dealing with the Bill, the Chair noted that the Committee would only be required to vote on the chapters instead of the various clauses of the Bill.

Chapters 1 to 12 with amendments were agreed to with the DP and NNP abstaining.
Schedules 1, 2 and 3 were agreed to with the DP and NNP abstaining.

The whole Bill was agreed to as amended with the DP and NNP abstaining.

The Chairperson then read the report of the Committee and it was agreed to and he signed it.

The Chairperson thanked everyone who had been involved in working on the Bill for their enormous effort, stressing the significance of the Bill to local government as a whole. The meeting was adjourned.

Appendix 1:

AMENDMENTS AGREED ON LOCAL GOVERNMENT: MUNICIPAL SYSTEMS BILL [B27-2000]
15 SEPTEMBER 2000

PREAMBLE
Whereas
The colonial and apartheid government and pre-democratic system of local government has failed generally to meet the basic needs of the majority of people in South Africa;

South Africa has reached the final stage of negotiated local government;
-This piece of legislation is part of a suite of laws to establish developmental local government;
-Government is committed to developing a system of participatory local governance that gives priority to the poor and disadvantaged sections of our population;
-Municipalities have a crucial role in addressing the infrastructure and service backlogs and promoting innovative service delivery options;
-The vision of developmental local government must be characterised by transparent people-driven systems of planning, service delivery and performance management.

Clause 62
1 On page 48, to replace the existing clause with the following:

certain delegations restricted to executive committees or executive mayors

62(1) The following powers may within a policy framework determined by the municipal council be delegated to an executive committee or executive mayor only:

(a) decisions to expropriate immovable property or rights in or to immovable property; and
(b) the determination or alteration of the remuneration, benefits or other conditions of service of the municipal manager or managers directly responsible to the municipal manager.

2. On page 48, to add the following subclause, the existing clause becoming subclause (1):

62(2) The council may only delegate to an executive committee or executive mayor or chief financial officer decisions to make investments on behalf of the municipality within a policy determined by the Minister of Finance.

New clause

On page 52. after clause 72 to insert the following clause..

Bargaining Council Agreement

72A Municipalities must comply with any collective agreement concluded in the bargaining council established for municipalities by organised local government within its mandate on behalf of local government.

Clause 73
On page 52 to replace subclause (1) with the following:

(1) The Minister may, subject to applicable legislation and after consultation with the bargaining c9uncil established for municipalities. for the purposes of this chapter -

(a) Make regulation to regulate the following matters:

(i) the procedure to be followed in appealing against decisions taken in terms of delegated powers and the disposal of such appeals;
(ii) the suspension of decisions on appeal;
(iii) the setting of uniform standards for:-
(aa) municipal staff establishments;
(bb) Municipal staff systems and procedures and matters that must be dealt with in such systems and procedures; and
(cc) any other matter concerning municipal personnel administration.

(iv) capacity building within municipal administrations;
(v) training of staff members of municipalities, including in-house training, subject to the requirements of the Skills Development Act. 1998 (Act no.81 of 1998) and the Skills Development Levies Act. 1 999 ( Act no.28 of 1 999);
vi) any other matter that may facilitate the application of this chapter; or

b) issue guidelines to provide for the following matters:
(i) the establishment of job evaluation systems;
ii) the regulation of remuneration and other conditions of service of staff members of municipalities. subject to applicable labour legislation;
(iii) the measuring and evaluation of staff performance;
(iv) the development of remuneration grading and incentive
frameworks for staff members of municipalities;
(v) corrective steps in the case of substandard performance by staff members of municipalities; and
(vi) any matter that may facilitate the implementation by a municipality of an efficient and effective system of personnel administration.

Clause 83
1. On page 58, in subclause (2)(a)(vi) after "service fees' to insert "for its own account".

2. On page 59, to replace subclause (3) with the following:
The municipal council has the right to set, review or adjust the tariffs within its tariff policy. The service delivery agreement may provide for the adjustment of tariffs by the service provider within the limitations set by the municipal council.

New clause
1. On page 62. to insert the following clause after clause 87.

Policy framework for internal municipal service district

87A (1) A municipality must develop and adopt a policy framework for the establishment. regulation and management of an internal municipal service district.

2) Such a policy framework must reflect at least the following:
(a) The development needs and priorities of designated parts of the municipality that must be balanced against that of the municipality as a whole;
(b) the extent to which the establishment of one or more internal municipal service districts-

i) must promote the local economic development of the municipality as a whole;
(ii) must contribute to enhancing social, economic and spatial integration of the municipality; and
(iii) may not entrench or contribute to further disparities in service provision.

Clause 89
On page 63, to add the following subclause, the existing clause becoming subclause (1):

(2) The municipalities that receive a request in terms of subsection (1) must, within two months of receiving such request, decide whether to accede to the request and convey their decision to the Minister."

Clause 92
1. On page 64. in subclause (1 )(a) to delete "except the setting of tariffs".

2. On page 64. after paragraph (g) of subclause (2) to add the following paragraph:
(h) set. review and adjust tariffs within the policy framework approved by the participating municipalities.

Clause 105
On page 71 to insert the following paragraph after paragraph (k).

(l) regulate the development and implementation of an indigent policy

Proposed Amendments on Transitional Arrangements (version B)

"Phasing in of certain provisions of this Act.

124A. (1) The Minister, by notice in the Gazette, may phase in over a period not exceeding 10 years as from the date this Act takes effect in terms of section 125, the application of the provisions of this Act which place a financial or administrative burden on municipalities.

(2) A notice in terms of subsection (1) may -

(a) determine the different dates on which different provisions of this Act becomes applicable to municipalities;

(b) apply to all municipalities generally;

(c) differentiate between different kinds of municipalities whch may, for the purpose of the phasing in of the relevant provisions, be defined in the notice in relation to categories or types of municipalities or in any other way; or

(d) apply to specific kind of municipality only, as defined in the notice.

(3) No provisions of this Act which places a financial or administrative burden on municipalities binds a municipality unless that provision has been made applicable to the municipality in terms of this section."

Option 2

To be inserted at the end of chapters 2, 4, 5, 6, 7, 8, and 9

"(1) The Minister, by notice in the Gazette, may in over a period not exceeding 10 years as from the date this Act takes effect in terms of section 125, the application of the provisions of this Act which place a financial or administrative burden on municipalities.

(2) A notice in terms of subsection (1) may-

(a) determine the different dates on which different provisions of this Chapter become applicable to municipalities;

(b) apply to all municipalities generally;

(c) differentiate between different kinds of municipalities which may, for the purpose of the phasing in of the relevant provisions, be defined in the notice in relation to categories or types of municipalities or in any other way; or

(d) apply to a specific kind of municipality only, as defined in the notice.

(3) No provision of this Chapter which places a financial or administrative burden on municipalities binds a municipality unless that provision has been made applicable to the municipality in terms of this section."