DOYLE/RIVETT-CARNAC PARTNERSHIP
SUBMISSION TO THE PORTFOLIO COMMITTEE ON PUBLIC WORKS ON 6/7 MARCH 2007 AT THE IZIKO SLAVE LODGE MUSEUM


Purpose

The Doyle/Rivett-Carnac Partnership will make an oral submission to the Portfolio Committee against the background of its practical experience which the Partnership has had in valuing immovable property assets owned by the Department of Public Works in the Cape Metropolitan area and the bearing that this has on the proposed Immovable Assets Management Bill.


Qualifications and Expertise

Michael Doyle is a senior qualified and registered professional Quantity Surveyor and Valuer with some 45 years of experience. Steyn Rivett-Carnac is a registered professional Valuer with some 35 years experience. Prof Keith Cattell, who may be able to attend the presentation, is currently Head of the Department of Property Construction and Economics at UCT. He is a registered professional Quantity Surveyor who assists the Partnership on certain technical issues.

Introduction

The Doyle/Rivett-Carnac Partnership has, over the last few years been awarded contracts by the City of Cape Town to value immovable assets owned by the Department of Public Works for municipal rating purposes. The immovable assets valued have covered the following:

a) Transport

Cape Town, Kalk Bay, Hout Bay and Gordon’s Bay Harbours and Cape Town International Airport and the Railway network in greater Cape Town

b) Military

Wynberg, Youngsfield, Wingfield, Yzterplaat and Faure Military Bases, Naval bases at Simon’s Town, Redhill, Kommetjie and Silvermine.

c) Prisons

Pollsmoor and Goodwood Prisons


COMMENTS ON THE PROPOSED BILL

The Partnership does not have the necessary insight to comment on the technical niceties of the Bill but does feel that certain practical issues that have arisen whilst undertaking the abovementioned valuations will be of assistance to the Portfolio Committee on framing the proposed legislation. In this regard the Partnership feels that the most important issues concern what is described in the Draft Bill as “best practice” and “best value for money”.

Nowhere in the Draft Bill is mention made of the need to identify the “best use” of an immovable asset owned by the Department of Public Works. It is our submission that, unless the”best use” of a particular asset is first established, “the optimisation of the return on investment in relation to functional, financial, economic and social return” will result in an inadequate assessment of the “best use” of the immovable property to the State.

We feel that our practical experience has highlighted to us that immovable assets owned by the Department of Public Works are currently being allocated to a government user department arising from historical allocations that do not meet current-day needs. We will deal with these issues orally.

CURRENT PROPERTY ASSET INFORMATION

Flowing from practical experience when carrying out valuations for municipal rating purposes, the Partnership will discuss the inadequacy of the current property information records and, in many instances, the under-utilisation of prime land owned by the Department of Public Works in the Cape Town Metropolitan area. Some ideas on how these inadequacies can be addressed will be suggested.


NECESSITY FOR ESTABLISHING SHORT, MEDIUM AND LONG-TERM MAINTENANCE PLANS FOR IMMOVABLE ASSETS.

It is clear from the memorandum on the objects of this Bill and the sections of the Bill presently being discussed that the issue of the allocation of sufficient funds for the proper maintenance of immovable assets has been identified and forms an integral part of the proposed legislation. The Partnership can confirm that in interviews that it has conducted with the building maintenance user departments of immovable property owned by the Department of Public Works that no proper maintenance plans are currently in use and that, at best, maintenance is carried out on an ad hoc basis when the need arises i.e. no plans are in place to implement maintenance programmes to avoid or at least minimise depreciation.

Furthermore, the basic physical data relating to the assets is not available.


E S RIVETT-CARNAC
Partner

5 March 2007