11' C 54/10/12

COUNCIL OF THE CITY OF CAPE TOWN 31 OCTOBER 2012

11'

ITEM NUMBER: C 54/10/12

RECOMMENDATION FROM THE EXECUTIVE MAYOR: 16 OCTOBER 2012

MC 49/10/12 2012 MyCiTi BUSINESS PLAN: PHASES 1A, 1 BAND N2

EXPRESS OF CAPE TOWN'S MyCiTi INTEGRATED RAPID

TRANSIT SYSTEM

RECOMMENDED that:

(a) the 2012 MyCiTi Business Plan for Cape Town's MyCiTi

Integrated Rapid Transit (IRT) system, covering Phases 1A, 1B and N2 Express (referred to as "the 2012 MyCiTi Business Plan") be approved by Council as a basis for the continued implementation of Phase 1A and the implementation of Phases 1

Band N2 Express

(b) approval be granted to plan, design and implement the necessary infrastructure, acquire such property, purchase such fleet and contract such operators and professional services, as required to provide the services as described in the Business Plan, subject to approved budgets, compliance with legal requirements and following prescribed procurement processes

(c) all MyCiTi capital costs, as well as MyCiTi operating costs related to the design, planning and implementation of the MyCiTi system, as provided for in terms of the Public Transport Infrastructure and

Systems Grant (PTISG) framework conditions as set out in the

Division of Revenue Act (Act 5 of 2012) (DORA), be covered from the PTISG

(d) MyCiTi recurrent costs be covered between PTISG funding and

Council's own funds, at a percentage breakdown where the City never contributes more than 50% of such costs, with the proviso that, as required by the PTISG framework conditions contained in

DORA, Council's own contribution may not be less than the difference between direct vehicle operational costs and system revenue, unless national government agrees to an arrangement that is more favourable to the City,

• subject to the condition that the City's commitment to funding be capped at 4% of property rates income;

• where MyCiTi recurrent costs are defined as including all operating costs arising from: (1) automated fare collection;

(2) control centre; (3) station management; (4) MyCiTi marketing; (5) management and oversight of MyCiTi operations by Directorate: IRT Operations; (6) services by other City departments arising as a result of the provision

COUNCIL OF THE CITY OF CAPE TOWN 175 31 OCTOBER 2012 of MyCiTi services; (7) the difference between direct vehicle operational costs and system revenue (including fare and advertising revenue); including legitimate secondary charges for support services but excluding depreciation where capital assets are grant-funded.

(e) the principle be adopted that non-core costs incurred by other departments indirectly related to MyCiTi services, such as costs related to cleansing and landscaping, but actually more related to improvement of municipal services in areas serviced by MyCiTi, not be treated as MyCiTi operational costs, except for an initial period as required for the relevant departments to budget appropriately for such costs in future years, but that, after such initial period the costs be absorbed by the City, as set out in more detail in the 2012 MyCiTi Business Plan

(f) costs be contained and fare levels and levels of service be set such that the funding level established in (d) above is not exceeded, unless national funding is secured to cover the difference

(g) the Executive Director: Transport, Roads & Stormwater, in consultation with the Chief Financial Officer, engage with

National Department of Transport and National Treasury with a view to establishing an agreed approach in the long term that limits the City's contribution to MyCiTi to a maximum of approximately the level established in recommendation (d) above and that, if an alternative solution emerges in discussion with these national departments, they report back to Council for its approval

(h) the Compensation Policy attached as Annexure F to the 2010

Business Plan be rescinded and the Compensation Policy attached as Annexure F to the 2012 MyCiTi Business Plan, be adopted and applied to Phases 1 A, 1 Band N2 Express

(i) authority be granted to the Executive Director: Transport, Roads and Stormwater to determine, in consultation with the Chief

Financial Officer, the compensation to be offered to minibus taxi operators, and to determine the process to be followed regarding the offer and payment of such compensation, including the authority:

(i) to effect amendments to Annexure F of the 2012 MyCiTi

Business Plan as may be necessary to ensure the successful conclusion of the compensation process, provided that -

1. the total amount of compensation to be paid in

COUNCIL OF THE CITY OF CAPE TOWN

176

31 OCTOBER 2012 accordance with the amended Annexure F does not exceed the amounts for compensation payments approved by Council;

2. any such amendments be noted at the first possible

Council meeting, taking into account dates of closure of agendas for Council and its committees.

(ii) to exercise any authority reasonably necessary for, or incidental to, the effective implementation of the

Compensation Policy, including the authority to sign any compensation offer on behalf of the City, subject to proviso (i)(1) above.

(j) Confirm the authority provided by Council on 26 October

2011 (item C 33/10/11) to proceed with all works (inclusive of acquisition of land, procuring of vehicles, construction of depots/staging areas and other infrastructure works) necessary for the fast track implementation of Phase 2, subject to budgetary provisions and funding being in place.

REPORT TO EXECUTIVE MAYOR

117

CITY OF CAPE TOWN ilSlXEKO SASEkAPA

I

STAO KAAPSTAD

1

2

ITEM NUMBER: Me 49/10/12

2012 MYCITI BUSINESS PLAN: PHASES 1A, 1B AND N2 EXPRESS

OF CAPE TOWN'S MYCITIINTEGRATED RAPID TRANSIT SYSTEM

ISICWANGCISO SENDLELA YOKUFEZEKISWA KOMSEBENZI

SEZIGABA-1A, 1B, NO-N2 EXPRESS ZENKQUBO YASEKAPA

ENG 0 THUTHO OLUHLANGENEYO LWEBHASI EZIQUQA

ZIBUYELELA I-MYCITI

2012 MYCITI SAKEPLAN: FASES 1A, 1B EN N2 EXPRESS VAN

KAAPSTAD SE MYCITI-GEi"NTEGREERDE SNELVERVOER-

STELSEL

LSU A4872 1 C5103

3 RECOMMENDATION FROM FINANCE PORTFOLIO COMMITTEE:

1 OCTOBER 2012 (FIN 12/10/12)

Amended recommendations were tabled at the meeting and after detailed discussion the amended recommendations were put to the vote with the results as follows:

In favour: 9

Against: 0

Abstentions: 6

The amended recommendations were therefore carried.

The ANC and CMC abstained from voting.

RECOMMENDED that:

(a) The 2012 MyCiTi Business Plan for Cape Town's MyCiTi

Integrated Rapid Transit (IRT) system, covering Phases 1 A, 1 B and N2 Express (referred to as "the 2012 MyCiTi Business Plan") be approved by Council as a basis for the continued implementation of Phase 1A and the implementation of Phases

1 Band N2 Express;

(b) Approval is granted to plan, design and implement the necessary infrastructure, acq uire such property, purchase such fleet and contract such operators and professional services, as required to provide the services as described in the Business Plan, subject to

....

,., ,

178 approved budgets, compliance with legal requirements and following prescribed procurement processes;

(c) All MyCiTi capital costs, as well as MyCiTi operating costs related to the design, planning and implementation of the MyCiTi system, as provided for in terms of the Public Transport Infrastructure and


Division of Revenue Act (Act 5 of 2012) (DORA), be covered from the PTISG;




• subject to the condition that the City's commitment to funding be capped at 4% of property rates income,


(2) control centre; (3) station management; (4) MyCiTi marketing; (5) management and oversight of MyCiTi operations by Directorate: IRT Operations; (6) services by other City departments arising as a result of the provision of MyCiTi services; (7) the difference between direct vehicle operational costs and system revenue (including fare and advertising revenue); including legitimate secondary charges for support services but excluding depreciation where capital assets are grant-funded;

(e) The principle is adopted that non-core costs incurred by other departments indirectly related to MyCiTi services, such as costs related to cleansing and landscaping, but actually more related to improvement of municipal services in areas serviced by MyCiTi, not be treated as MyCiTi operational costs, except for an initial period as required for the relevant departments to budget appropriately for such costs in futu re years, but that, after such initial period the costs be absorbed by the City, as set out in more detail in the 2012 MyCiTi Business Plan;

(f) That costs be contained and fare levels and levels of service be set such that the funding level established in (d) is not exceeded, unless national funding is secured to cover the difference;

(g) The ED: TR&S, in consultation with the Chief Financial Officer, engage with national Department of Transport and National

.

, ' , ' , '

.

...

,

'

...

179

Treasury with a view to establishing an agreed approach in the long term that limits the City's contribution to MyCiTi to a maximum of approximately the level established in recommendation (d) and that, if an alternative solution emerges in discussion with these national departments, they report back to

Council for its approval;

(h) The Compensation Policy attached as Annexure F to the 2010

Business Plan be rescinded and the Compensation Policy attached as Annexure F to the 2012 MyCiTi Business Plan, be adopted and applied to Phases 1A, 1B and N2 Express;

(i) . Council delegates to the Executive Director: Transport, Roads and

Stormwater the authority to determine, in consultation with the

Chief Financial Officer, the compensation to be offered to minibustaxi operators, and to determine the process to be followed regarding the offer and payment of such compensation, including the authority:


Business Plan as may be necessary to ensure the successful conclusion of the compensation process, provided that -

(1) the total amount of compensation to be paid in accordance with the amended Annexure F does not exceed the amounts for compensation payments approved by Council;

(ii)

(2) any such amendments are noted at the first possible Council meeting, taking into account dates of closure of agendas for Council and its committees; to exercise any authority reasonably necessary for, or incidental to, the effective implementation of the

Compensation Policy, including the authority to sign any compensation offer on behalf of the City, subject to proviso (i)(1) above;

G) Confirm the authority provided by Council on 26 October 2011

(Item C33/1 0/11) to proceed with all works (inclusive of acquisition of land, procuring of vehicles, construction of depots 1 staging areas and other infrastructure works) necessary for the fast track implementation of Phase 2, subject to budgetary provisions and funding being in place.

.,," 180

AANBEVEEL

dat:

(a) Die MyCiTi 2012-sakeplan vir Kaapstad se MyCiTi- ge"integreerde snelvervoer(GSV)stelsel wat fase 1A, 1 B en die N2 Express dek

(genoem die "MyCiTi 2012-sakeplan"), deur die Raad goedgekeur word as 'n grondslag vir die voortgesette implementering van fase

1A

en die implementering van fase 1 B en die N2 Express;

(b) Goedkeuring verleen word vir die beplanning, ontwerp en implementering van die nodige infrastruktuur, verkryging van sodanige eiendom, aankoop van sodanige vloot en kontraktering van sodanige operateurs en professionele dienste, wat vir die verskaffing van die dienste beskryf in die sakeplan verlang word, onderworpe aan goedgekeurde begrotings, nakoming van regsvereistes en volg van voorgeskrewe verkrygingsprosesse;

(c) Aile MyCiTi-kapitaalkoste, asook MyCiTi-bedryfskoste met betrekking tot die ontwerp, beplanning en implementering van die MyCiTi-stelsel, soos bepaal ingevolge die raamwerkvoorwaardes vir die openbare vervoerinfrastruktuur-enstelseltoelae (PTISG) en uiteengesit in die Wet op Verdeling van

Inkomste (Wet 5 van 2012) (DORA), van die PTISG verhaal word;

(d) Herhalende MyCiTi-koste deur die PTISG-befondsing en die

Raad se eie fondse gedek word teen 'n persentasie-ontleding waar die Stad nooit meer as 50% van hierdie koste dek nie, met dien verstande dat, soos vereis ingevolge die PTISG-raamwerkvoorwaardes vervat in die DORA, die Raad se eie bydrae nie minder as die verskil tussen direkte voertuigbedryfskoste en stelselinkomste mag wees nie, tensy die nasionale regering tot 'n reeling instem wat vir die Stad meer voordelig is;

• onderworpe aan die voorwaarde dat die Stad se verbintenis tot befondsing beperk word tot 4% van die inkomste uit eiendomsbelasting,

• waar die herhaalde MyCiTi-koste aile bedryfskoste insluit wat voortspruit uit: (1) geoutomatiseerde reisgeldinvordering; (2) beheersentrum; (3) stasiebestuur; (4)

MyCiTi-bemarking; (5) bestuur en toesig oor MyCiTibedrywighede deur die direktoraat: GSV-bedrywighede; (6) dienste deur ander Stadsdepartemente voortspruitend uit die voorsiening van MyCiTi-dienste; (7) die verskil tussen direkte voertuigbedryfskoste en stelselinkomste (insluitend reisgeld- en advertensie-inkomste), met inbegrip van wettige sekondere heffings vir ondersteuningsdienste maar uitgesluit depresiasie in die geval van toelaebefondsing van kapitaalbates;

181

.....

(e) Die beginsel goedgekeur word dat niekern-koste wat deur ander departemente aangegaan word vir dienste wat indirek met MyCiTi verband hou soos koste vir reiniging en terreinverfraaiing, maar eintlik meer verband hou met munisipale dienste in gebiede wat deur MyCiTi bedien word, nie as MyCiTi-bedryfskoste gehanteer word nie, behalwe vir 'n aanvanklike tydperk soos verlang sod at die betrokke departemente behoorlik vir hierdie koste in toekomstige jare kan beg root, maar dat die koste na hierdie aanvanklike tydperk deur die Stad geabsorbeer word, soos breedvoeriger uiteengesit in die MyCiTi 2012-sakeplan;

(f) Dat koste in toom gehou word en reisgeld- en diensvlakke so vasgestel word dat die befondsingsvlak wat in (d) gestel is, nie oorskry word nie, tensy nasionale befondsing verkry word om die verskil te dek;

(g) Die uitvoerende direkteur: vervoer, paaie en stormwater in oorleg met die uitvoerende direkteur: finansies met die nasionale departement van vervoer en nasionale tesourie in gesprek tree met die oog op die aanvaarding van 'n ooreengekome benadering oor die langtermyn wat die Stad se bydrae beperk tot

'n maksimum van ongeveer die vlak wat in aanbeveling (d) gestel is en dat, indien 'n alternatiewe oplossing tydens die gesprek met hierdie nasionale departemente gevind word, hulle ter goedkeuring aan die Raad terugrapporteer;

(h) Die vergoedingsbeleid aangeheg as bylae F by die 2010sakeplan herroep word en die vergoedingsbeleid aangeheg as bylae F by die MyCiTi 2012- sakeplan goedgekeur en toegepas word op fase 1A, 1 B en die N2 Express;

(i) Die Raad aan die uitvoerende direkteur: vervoer, paaie en stormwater die bevoegdheid delegeer om in oorleg met die hooffinansiele beampte die vergoeding te bepaal wat aan minibustaxioperateurs aangebied moet word, asook die proses wat gevolg moet word ten opsigte van die aanbod en betaling van hierdie vergoeding, insluitend die bevoegdheid:

(i) om wysigings aan bylae F van die MyCiTi 2012-sakeplan deur te voer soos nodig mag wees vir die suksesvolle afhandeling van die vergoedingsproses, met dien verstande dat:

(1) die totale vergoedingsbedrag wat ooreenkomstig die gewysigde bylae F betaal moet word, nie die bed rae vir vergoedingsbetaling wat deur die Raad goedgekeur is, oorskry nie;

(2) daar by die eerste moontlike Raadsvergadering van enige sodanige wysigings kennis geneem

182

(ii) word, met inagneming van die sluitingsdatums van agendas vir die Raad en sy komitees; om enige bevoegdheid uit te oefen wat redelikerwys nodig mag wees vir of meegebring word deur die doeltreffende implementering van die vergoedingsbeleid, insluitend die bevoegdheid om enige vergoedingsaanbod namens die

Stad te onderteken, onderworpe aan voorwaarde (i)(1) hierbo.

U) Bekragtig die magtiging wat op 26 Oktober 2011 deur die Raad verleen is (Item C33/10/11) vir die voortsetting van aile werke

(insluitend die verkryging van grond, verkryging van voertuie, bou van depots/hougebiede ["staging areas"] en ander infrastruktuurwerke) wat vir die versnelde implementering van fase 2 nodig is, onderworpe aan die beskikbaarheid en gereedheid van begrotingsvoorsienings en befondsing.

IZINDULULO

(a) Isicwangciso sokuFezekiswa komsebenzi saseKapa se-MyCiti sangowama-2012 nenkqubo eHlanganisiweyo engezoThutho oluquqa libuyelela (IRT), equka iziGaba-1A, 1 B no-N2 Express

(esibizwa ngokuba "sisicwangciso sOkuFezekiswa komsebenzi sango-2012 se-MyCiTi") masiphunyezwe IiBhunga njengommiselo/njengesiseko sokuqhubekeka kokumiselwa kwisiGaba-1A nokumiselwa kweziGaba-1 B no-N2 Express;

(b) Kunikezelwa isiphumezo kwisicwangciso, kuyilo nokumiselwa kwezakheko ezisisiseko ezifanelekileyo, kufunyanwe 100 propati, kuthengwe ezo zithuthi, kwenziwe ikhontrakthi yabo baboneleli ngenkonzo neenkonzo zobungcali njengoko kucacisiwe kwiSicwangciso sokuqhutywa komsebenzi, ngokuxhomekeke kwiibhajethi eziphunyeziweyo, ukuthotyelwa kweemfuno zomthetho nokulandelwa ngokufanelekileyo kweenkqubo ezimiselweyo zethenda;

(c) Zonke iindleko ezingezimali ezinkulu kunye neendleko ezingezimali ezisebenzisekayo ze-MyCiTi eziphathelene nezoyilo, ezocwangciso nezokumiselwa kwenkqubo ye-MyCiTi, njengoko kubonelelwe ngokwemiqathango yesakheko engeZakheko ezinguNdoqo zezoThutho 10Luntu neeNkqubo ezingeZibonelelo zoncedo (PTISG) njengoko kuqulunqwe kuMthetho ongoLwahlulo

IwezeNgeniso onguNomb.5 wangowe-2012 (DORA), mazifunyanwe kwi-PTISG;

(d) lindleko ezisigxina ze-MyCiTi mazifumaneke phakathi kwenkxasomali ye-PTISG nakwizimali zeBhunga, ngokocazululo Iwepesenti apho isiXeko singanokwenza igalelo elingaphezulu kwama-50% kwezo ndleko, ngokommisele wokuba njengoko kuyimfuneko

183

..

~

.....

, ngokwemiqathango yesakheko ye-PTISG equlathwe kwi-DORA, igalelo leBhunga lisengangabikho ngaphantsi komahluko phakathi kweendleko ezithe ngqo zendlela yokuSebenza kwezithuthi nengeniso yenkqubo, ngaphandle kokuba urhulumente wesizwe uvumelana namalungiselelo athi abelulutho kwisiXeko,

• Ngokuxhomekeke kumqathango wokuba ukuzimisela kwesiXeko kwinkxaso-mali kufuneka kugcinwe kwisi-4% elixabiso lengeniso elingepropati,

• Apho iindleko eZisigxina ze-MyCiTi ezithi zicaciswe njengeziquka zonke iindleko ezisebenzisekayo njengeziquka zonke iindleko ezisebenzisekayo ezingumphumela: (1) wokuqokelelwa komrhumo ngokuzenzekelayo; (2) weziko lolawulo; (3) wolawulo

Iwesikhululo; (4) ukwaziswa/ubhengezo Iwe-MyCiTi; (5) ulawulo nokubek'iliso kwiindlela zokusebenza ze-MyCiTi nguMlawuli weeNdlela zokuSebenza ze-IRT; (6) iinkonzo zamanye amasebe esiXeko ezingumphumela wObonelelo ngeenkonzo ze-MyCiTi; (7) umahluko phakathi kweendleko ezingqalileyo zokuSebenza kwezithuthi nengeniso yenkqubo (kuquka: amaxabiso/umrhumo nengeniso engokuzazisa/engobhengezo); kuquka iintlawulo ezivumelekileyo zesibini ezingeenkonzo zenkxaso kodwa ngaphandle kokuhla apho iimpahla zezimali ezinkulu zithi zixhaswe ngezibonelelo-zoncedo;

(e) Makumiselwe umthetho-siseko ongokuba iindleko ezingekho sigxina ezithe zachithwa ngamanye amasebe ngokungathangangqo kwiinkonzo ze-MyCiTi, iindleko ezifana neziphathelene kucoceko nembonakalo-mhlaba, kodwa eziphathelene nophuculo Iweenkonzo zikamasipala kwimimandla apho inikezelwa iinkonzo ze-MyCiTi, mazingathatyathwa njengeendleko ezisebenzisekayo ze-MyCiTi, ngaphandle kwisithuba sokuqala njengoko kuyimfuneko kumasebe afanelekileyo ukuya kwibhajethi ejoliswe/efaneleke kwezo ndleko kwiminyaka ezayo, kodwa emva kweso sithuba/kwelo xesha lokuQala iindleko kufuneka ibezezesiXeko njengoko kucacisiwe ngakumbi kwisiCwangciso sokuFezekiswa koMsebenzi sango-2012 se-MyCiTi;

(f) Ukuba iindleko ezo masigcinwe namanqanaba emirhumo namanqanaba eenkonzo mayiqulunqwe ngokwendlela yokuba inqanaba lenkxaso-mali emiselwe ku-(d) ayigqithisi, ngaphandle kokuba kufumaneka inkxaso-mali yeSizwe ukuze kuhlawuleke umahluko;

(g) UMlawuli wesiGqeba kwezoThutho, iiNdlela naManzi esitshilkwi-

TR&S, ecebisana neGosa eliyiNtloko kwezeMali mababandakanye iSebe leSizwe lezoThutho noNondyebo weSizwe ngenjongo yokumisela indela ethile ekuvunyelwene

184

...

~ ngayo yexesha elide apho ithi IVlmoele isiXeko kwigalelo emalunga nenqanaba elimiselwe kwisindululo-(d) kwakhona ukuba kuye kwavela isisombululo esingesinye ngokwezi ngxoxo kunye namasebe esizwe, kufuneka ban ike ingxelo kwibhunga ukuze isisombululo eso siphunyezwe;

(h) Makurhoxiswe uMgaqo-nkqubo ongeMbuyekezo njengoko uqhotyoshelwe kwisiHlomelo-F kwisiCwangciso sokuFezekiswa komsebenzi sango-2010 kwakhona makwamkelwe ngokusesikweni uMgaqo-nkqubo ongeMbuyekezo njengoko uqhotyoshelwe kwisiHlomelo-F kwisiCwangciso sokuFezekiswa komsebenzi se-MyCiTi sango-2012 kwaye simiselwe ngokweziGaba-1A, 1B no-N2 Express;

(i)

G)

IBhunga maligunyazise uMlawuli wesiGqeba kwezoThutho, iiNdlela naManzi esitshi sokuba athabathe Isigqibo ecebisana neGosa eliyiNtioko kwezeMali ngokumalunga nembuyekezo ekufuneka inikezelwe kubaqhubi beeteksi ezincinane, kwakhona athabathe isigqibo ngokumalunga neNkqubo eyakuthi ilandelwe ngokujoliswe kwisinikezelo nentlawulo yaloo mbuyekezo kuquka: negunya:

(i) ukuba kuqaliswe izilungiso kwisiHlomelo-F sesiCwangciso sokuFezekiswa komsebenzi se-MyCiTi sango-2012 njengoko kungayimfuneko ukuze kuqinisekiswe ukuqukunjelwa ngempumelelo kwenkqubo engembuyekezo, ngokuxhomekeke ekubeni ukuba -

(1) isixa sisonke sembuyekezo ekufuneka sihlawulwe ngokungqinelana nesiHlomelo-F esilungisiweyo asidluli kwizixa eziziintlawulo zembuyekezo eZiphunyezwe liBhunga;

(2) naluphina

010 lungiso maluqwalaselwe kwintlanganiso yokuqala yeBhunga, ngokuthi kuthathelwe ingqalelo iintuku ezingokuvalwa kweeajenda zeBhunga nekomiti zalo;

(ii) ukuba kusetyenziswe naliphina igunya elifanelekileyo elijoliswe okanye elingqamene nokumiselwa ngokufanelekileyo komgaqo-nkqubo ongembuyekezo, kuquka igunya lokutyikitya nasiphina isinikezelo sembuyekezo egameni lesiXeko, ngokuxhomekeke kummiselo-(i)(1) ongentla apha.

Kuqinisekiswe igunya elinikezelwe liBhunga ngomhla wama-26

Oktobha 2011 (umbandela-C33/1 0/11) ukuba kuqhutyekekwe ngayo yonke imisebenzi (kuquka: ukufumaneka komhlaba, ukuthengwa kwezithuthi, ukwakhiwo kweedepholiindawo zokuma kwezithuthi neminye imisebenzi engezakheko

185 ezingundoqo) ezithi zibeyimfuneko ekumiselweni ngokukhawuleza kwesiGaba-2, ngokuxhomekeke ekubeni kufumaneke izibonelelo zohlahlo-Iwabiwo-mali nenkxaso-mali.

RECOMMENDATION FROM THE TRANSPORT, ROADS AND

STORMWATER PORTFOLIO COMMITTEE: 04 OCTOBER 2012

(TR&S 13/10/12)

The following amendments to the recommendation were tabled for consideration:

"(c) All MyCiTi capital costs, as well as MyCiTi operating costs related to the design, planning and implementation of the MyCiTi system, as provided for in terms of the Public Transport Infrastructure and

Systems Grant (PTISG) framework conditions as set out in the

Division of Revenue Act (Act 5 of 2012) (DORA), be covered from the PTISG;

(d) MyCiTi recurrent costs be covered between PTiSG funding and

Council's own funds, at a percentage breakdown where the City never contributes more than 50% of such costs, with the proviso that, as required by the PTISG framework conditions contained in

DORA, Council's own contribution may not be less than the difference between direct vehicle operational costs and system revenue, unless national government agrees to an arrangement that is more favourable to the City,

• subject to the condition that the City's commitment to funding be capped at 4% of property rates income,

• where MyCiTi recurrent costs are defined as including all operating costs arising from: (1) automated fare collection;

(2) control centre; (3) station management; (4) MyCiTi marketing; (5) management and oversight of MyCiTi operations by Directorate: IRT Operations; (6) services by other City departments arising as a result of the provision of MyCiTi services; (7) the difference between direct vehicle operational costs and system revenue (including fare and advertising revenue); including legitimate secondary charges for support services but excluding depreciation where capital assets are grant-funded;

(i) The ED: TR&S, in consultation with the Chief Financial Officer, engage with national Department of Transport and National

Treasury with a view to establishing an agreed approach in the long term that limits the City's contnbution to MyCiTi to a maximum of approximately the level established in recommendation (d) and that, if an alternative solution emerges in discussion with these national departments, they report back to

Council for its approval;

186

(j) Confirm the authority provided by Council on 26 October 2011 (Item

C3311 0111) to proceed with all works (inclusive of acquisition of land,

procuring of vehicles, construction of depots 1 staging areas and other infrastructure works) necessary for the fast track

implementation of Phase funding being in place.

2, subject to budgetary provisions and

The above amendments to the recommendation were duly supported.

RECOMMENDED that:

(a) The 2012 MyCiTi Business Plan for Cape Town's MyCiTi

Integrated Rapid Transit (IRT) system, covering Phases 1A, 1 B and N2 Express (referred to as "the 2012 MyCiTi Business Plan") be approved by Council as a basis for the continued implementation of Phase 1A and the implementation of Phases

1 Band N2 Express;

(b) Approval is granted to plan, design and implement the necessary infrastructure, acquire such property, purchase such fleet and contract such operators and professional services, as required to provide the services as described in the Business Plan, subject to approved budgets, compliance with legal requirements and following prescribed procurement processes;

(c) All MyCiTi capital costs, as well as MyCiTi operating costs related to the design, planning and implementation of the MyCiTi system, as provided for in terms of the Public Transport Infrastructure and


Division of Revenue Act (Act 5 of 2012) (DORA), be covered from the PTISG;




• subject to the condition that the City's commitment to funding be capped at 4% of property rates income,


(2) control centre; (3) station management; (4) MyCiTi marketing; (5) management and oversight of MyCiTi operations by Directorate: IRT Operations; (6) services by

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187 other City departments arising as a result of the provision of MyCiTi services; (7) the difference between direct vehicle operational costs and system revenue (including fare and advertising revenue); including legitimate secondary charges for support services but excluding depreciation where capital assets are grant-funded;

(e) The principle is adopted that non-core costs incurred by other departments indirectly related to MyCiTi services, such as costs related to cleansing and landscaping, but actually more related to improvement of municipal services in areas serviced by MyCiTi, not be treated as MyCiTi operational costs, except for an initial period as required for the relevant departments to budget appropriately for such costs in future years, but that, after such initial period the costs be absorbed by the City, as set out in more detail in the 2012 MyCiTi Business Plan;

(f) That costs be contained and fare levels and levels of service be set such that the funding level established in (d) is not exceeded, unless national funding is secured to cover the difference;

(g) The ED: TR&S, in consultation with the Chief Financial Officer, engage with national Department of Transport and National

Treasury with a view to establishing an agreed approach in the long term that limits the City's contribution to MyCiTi to a maximum of approximately the level established in recommendation (d) and that, if an alternative solution emerges in discussion with these national departments, they report back to


(h) The Compensation Policy attached as Annexure F to the 2010

Business Plan be rescinded and the Compensation Policy attached as Annexure F to the 2012 MyCiTi Business Plan, be adopted and applied to Phases 1A, 1B and N2 Express;

(i) Council delegates to the Executive Director: Transport, Roads and

Stormwater the authority to determine, in consultation with the

Chief Financial Officer, the compensation to be offered to minibustaxi operators, and to determine the process to be followed regarding the offer and payment of such compensation, including the authority:


Business Plan as may be necessary to ensure the successful conclusion of the compensation process, provided that-

(1) the total amount of compensation to be paid in accordance with the amended Annexure F does

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188 not exceed the amounts for compensation payments approved by Council;

(2) any such amendments are noted at the first possible Council meeting, taking into account dates of closure of agendas for Council and its committees;

(ii) to exercise any authority reasonably necessary for, or incidental to, the effective implementation of the

Compensation Policy, including the authority to sign any compensation offer on behalf of the City, subject to proviso (i)(1) above;

(j) Confirm the authority provided by Council on 26 October 2011

(Item C33/1 0/11) to proceed with all works (inclusive of acquisition of land, procuring of vehicles, construction of depots 1 staging areas and other infrastructure works) necessary for the fast track implementation of Phase 2, subject to budgetary provisions and funding being in place.

AANBEVEEL

dat

(a) Die MyCiTi 2012-sakeplan vir Kaapstad se MyCiTi- ge"integreerde snelvervoer(GSV)stelsel wat fase 1A, 1 B en die N2 Express dek

(genoem die "MyCiTi 2012-sakeplan"), deur die Raad goedgekeur word as 'n grondslag vir die voortgesette implementering van fase

1A

en die implementering van fase 1 B en die N2 Express;


(c) Aile MyCiTi-kapitaalkoste, asook MyCiTi-bedryfskoste met betrekking tot die ontwerp, beplanning en implementering van die MyCiTi-stelsel, soos bepaal ingevolge die raamwerkvoorwaardes vir die openbare vervoerinfrastruktuur-enstelseltoelae (PTISG) en uiteengesit in die Wet op Verdeling van

Inkomste (Wet 5 van 2012) (DORA), van die PTISG verhaal word;

(d) Herhalende MyCiTi-koste deur die PTISG-befondsing en die

Raad se eie fondse gedek word teen 'n persentasie-ontleding waar die Stad nooit meer as 50% van hierdie koste dek nie, met dien verstande dat, soos vereis ingevolge die PTISG-raamwerkvoorwaardes vervat in die DORA, die Raad se eie bydrae nie minder as die verskil tussen direkte voertuigbedryfskoste en

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189

.. • I stelselinkomste mag wees nie, tensy die nasionale regering tot 'n reeling instem wat vir die Stad meer voordelig is;

• onderworpe aan die voorwaarde dat die Stad se verbintenis tot befondsing beperk word tot 4% van die inkomste uit eiendomsbelasting,

• waar die herhaalde MyCiTi-koste aile bedryfskoste insluit wat voortspruit uit: (1) geoutomatiseerde reisgeldinvordering; (2) beheersentrum; (3) stasiebestuur; (4)

MyCiTi-bemarking; (5) bestuur en toesig oor MyCiTibedrywighede deur die direktoraat: GSV-bedrywighede; (6) dienste deur ander Stadsdepartemente voortspruitend uit die voorsiening van MyCiTi-dienste; (7) die verskil tussen direkte voertuigbedryfskoste en stelselinkomste (insluitend reisgeld- en advertensie-inkomste), met inbegrip van wettige sekondere heffings vir ondersteuningsdienste maar uitgesluit depresiasie in die geval van toelaebefondsing van kapitaalbates;

(e) Die beginsel goedgekeur word dat niekern-koste wat deur ander departemente aangegaan word vir dienste wat indirek met MyCiTi verband hou 5005 koste vir reiniging en terreinverfraaiing, maar eintlik meer verband hou met munisipale dienste in gebiede wat deur MyCiTi bedien word, nie as MyCiTi-bedryfskoste gehanteer word nie, behalwe vir 'n aanvanklike tydperk 5005 verlang sodat die betrokke departemente behoorlik vir hierdie koste in toekomstige jare kan beg root, maar dat die koste na hierdie aanvanklike tydperk deur die Stad geabsorbeer word, 5005 breedvoeriger uiteengesit in die MyCiTi 2012-sakeplan;

(f) Dat koste in toom gehou word en reisgeld- en diensvlakke so vasgestel word dat die befondsingsvlak wat in (d) gestel is, nie oorskry word nie, tensy nasionale befondsing verkry word om die verskil te dek;

(g) Die uitvoerende direkteur: vervoer, paaie en stormwater in oorleg met die uitvoerende direkteur: finansies met die nasionale departement van vervoer en nasion ale tesourie in gesprek tree met die oog op die aanvaarding van 'n ooreengekome benadering oor die langtermyn wat die Stad se bydrae beperk tot

'n maksimum van ongeveer die vlak wat in aanbeveling (d) gestel is en dat, indien 'n alternatiewe oplossing tydens die gesprek met hierdie nasionale departemente gevind word, hulle ter goedkeuring aan die Raad terugrapporteer;

(h) Die vergoedingsbeleid aangeheg as bylae F by die 2010sakeplan herroep word en die vergoedingsbeleid aangeheg as bylae F by die MyCiTi 2012- sakeplan goedgekeur en toegepas word op fase 1A, 1B en die N2 Express;

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(i) Die Raad aan die uitvoerende direkteur: vervoer, paaie en stormwater die bevoegdheid delegeer om in oorleg met die hooffinansiele beam pte die vergoeding te bepaal wat aan minibustaxioperateurs aangebied moet word, asook die proses wat gevolg moet word ten opsigte van die aanbod en betaling van hierdie vergoeding, insluitend die bevoegdheid:


(1)

(2) die totale vergoedingsbedrag wat ooreenkomstig die gewysigde bylae F betaal moet word, nie die bed rae vir vergoedingsbetaling wat deur die Raad goedgekeur is, oorskry nie; daar by die eerste moontlike Raadsvergadering van enige sodanige wysigings kennis geneem word, met inagneming van die sluitingsdatums van agendas vir die Raad en sy komitees;

(ii) om enige bevoegdheid uit te oefen wat redelikerwys nodig mag wees vir of meegebring word deur die doeltreffende implementering van die vergoedingsbeleid, insluitend die bevoegdheid om enige vergoedingsaanbod namens die

Stad te onderteken, onderworpe aan voorwaarde (i)(1) hierbo.

(j) Bekragtig die magtiging wat op 26 Oktober 2011 deur die Raad verleen is (Item C33/10/11) vir die voortsetting van aile werke

(insluitend die verkryging van grond, verkryging van voertuie, bou van depots/hougebiede ["staging areas"] en ander infrastruktuurwerke) wat vir die versnelde implementering van fase 2 nodig is, onderworpe aan die beskikbaarheid en gereedheid van begrotingsvoorsienings en befondsing.

IZINDULULO

(a) Isicwangciso sokuFezekiswa komsebenzi saseKapa se-MyCiti sangowama-2012 nenkqubo eHlanganisiweyo engezoThutho oluquqa libuyelela (IRD, equka iziGaba-1A, 1B no-N2 Express

(esibizwa ngokuba "sisicwangciso sokuFezekiswa komsebenzi sango-2012 se-MyCiTi") masiphunyezwe IiBhunga njengommiselo/njengesiseko sokuqhubekeka kokumiselwa kwisiGaba-1A nokumiselwa kweziGaba-1 B no-N2 Express;

(b) Kunikezelwa isiphumezo kwisicwangciso, kuyilo nokumiselwa kwezakheko ezisisiseko ezifanelekileyo, kufunyanwe 100 propati,

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191 kuthengwe ezo zithuthi, kvJel'l~iiNe ikhontrakthi yabo baboneleli ngenkonzo neenkonzo zobungcali njengoko kucacisiwe kwiSicwangciso sokuqhutywa komsebenzi, ngokuxhomekeke kwiibhajethi eziphunyeziweyo, ukuthotyelwa kweemfuno zomthetho nokulandelwa ngokufanelekileyo kweenkqubo ezimiselweyo zethenda;

(c) Zonke iindleko ezingezimali ezinkulu kunye neendleko ezingezimali ezisebenzisekayo ze-MyCiTi eziphathelene nezoyilo, ezocwangciso nezokumiselwa kwenkqubo ye-MyCiTi, njengoko kubonelelwe ngokwemiqathango yesakheko engeZakheko ezinguNdoqo zezoThutho loLuntu neeNkqubo ezingeZibonelelo zoncedo (PTISG) njengoko kuqulunqwe kuMthetho ongoLwahlulo

IwezeNgeniso onguNomb.5 mazifunyanwe kwi-PTISG; wangowe-2012 (DORA),

(d) lindleko ezisigxina ze-MyCiTi mazifumaneke phakathi kwenkxasomali ye-PTISG nakwizimali zeBhunga, ngokocazululo Iwepesenti apho isiXeko singanokwenza igalelo elingaphezulu kwama-50% kwezo ndleko, ngokommisele wokuba njengoko kuyimfuneko ngokwemiqathango yesakheko ye-PTISG equlathwe kwi-DORA, igalelo leBhunga lisengangabikho ngaphantsi komahluko phakathi kweendleko ezithe ngqo zendlela yokuSebenza kwezithuthi nengeniso yenkqubo, ngaphandle kokuba urhulumente wesizwe uvumelana namalungiselelo athi abelulutho kwisiXeko,

• Ngokuxhomekeke kumqathango wokuba ukuzimisela kwesiXeko kwinkxaso-mali kufuneka kugcinwe kwisi-4% elixabiso lengeniso elingepropati,

• Apho iindleko ezisigxina ze-MyCiTi ezithi zicaciswe njengeziquka zonke iindleko ezisebenzisekayo njengeziquka zonke iindleko ezisebenzisekayo ezingumphumela: (1) wokuqokelelwa komrhumo ngokuzenzekelayo; (2) weziko lolawulo; (3) wolawulo

Iwesikhululo; (4) ukwaziswa/ubhengezo Iwe-MyCiTi; (5) ulawulo nokubek'iliso kwiindlela zokusebenza ze-MyCiTi nguMlawuli weeNdlela zokuSebenza ze-IRT; (6) iinkonzo zamanye amasebe esiXeko ezingumphumela wobonelelo ngeenkonzo ze-MyCiTi; (7) umahluko phakathi kweendleko ezingqalileyo zokuSebenza kwezithuthi nengeniso yenkqubo (kuquka: amaxabiso/umrhumo nengeniso engokuzazisa/engobhengezo); kuquka iintlawulo ezivumelekileyo zesibini ezingeenkonzo zenkxaso kodwa ngaphandle kokuhla apho iimpahla zezimali ezinkulu zithi zixhaswe ngezibonelelo-zoncedo;

(e) Makumiselwe umthetho-siseko ongokuba iindleko ezingekho sigxina ezithe zachithwa ngamanye amasebe ngokungathangangqo kwiinkonzo ze-MyCiTi, iindleko ezifana neziphathelene kucoceko nembonakalo-mhlaba, kodwa eziphathelene

192 nophuculo Iweenkonzo zikamasipala kwimimandla apho inikezelwa iinkonzo ze-MyCiTi, mazingathatyathwa njengeendleko ezisebenzisekayo ze-MyCiTi, ngaphandle kwisithuba sokuqala njengoko kuyimfuneko kumasebe afanelekileyo ukuya kwibhajethi ejoliswe/efaneleke kwezo ndleko kwiminyaka ezayo, kodwa emva kweso sithuba/kwelo xesha lokuQala iindleko kufuneka ibezezesiXeko njengoko kucacisiwe ngakumbi kwisiCwangciso sokuFezekiswa koMsebenzi sango-2012 se-MyCiTi;

(f) Ukuba iindleko ezo masigcinwe namanqanaba emirhumo namanqanaba eenkonzo mayiqulunqwe ngokwendlela yokuba inqanaba lenkxaso-mali emiselwe ku-(d) ayigqithisi, ngaphandle kokuba kufumaneka inkxaso-mali yeSizwe ukuze kuhlawuleke umahluko;

(g) UMlawuli wesiGqeba kwezoThutho, iiNdlela naManzi esitshilkwi-

TR&S, ecebisana neGosa eliyiNtioko kwezeMali mababandakanye iSebe leSizwe lezoThutho noNondyebo weSizwe ngenjongo yokumisela indela ethile ekuvunyelwene ngayo yexesha elide apho ithi ivimbele isiXeko kwigalelo emalunga nenqanaba elimiselwe kwisindululo-(d) kwakhona ukuba kuye kwavela isisombululo esingesinye ngokwezi ngxoxo kunye namasebe esizwe, kufuneka ban ike ingxelo kwibhunga ukuze isisombululo eso siphunyezwe;

(h) Makurhoxiswe uMgaqo-nkqubo ongeMbuyekezo njengoko uqhotyoshelwe kwisiHlomelo-F kwisiCwangciso sokuFezekiswa komsebenzi sango-2010 kwakhona makwamkelwe ngokusesikweni uMgaqo-nkqubo ongeMbuyekezo njengoko uqhotyoshelwe kwisiHlomelo-F kwisiCwangciso sokuFezekiswa komsebenzi se-MyCiTi sango-2012 kwaye simiselwe ngokweziGaba-1A, 1B no-N2 Express;

(i) IBhunga maligunyazise uMlawuli wesiGqeba kwezoThutho, iiNdlela naManzi esitshi sokuba athabathe Isigqibo ecebisana neGosa eliyiNtioko kwezeMali ngokumalunga nembuyekezo ekufuneka inikezelwe kubaqhubi beeteksi ezincinane, kwakhona athabathe isigqibo ngokumalunga neNkqubo eyakuthi ilandelwe ngokujoliswe kwisinikezelo nentlawulo yaloo mbuyekezo kuquka: negunya:


(1) isixa sisonke sembuyekezo ekufuneka sihlawulwe ngokungqinelana nesiHlomelo-F esilungisiweyo

G)

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193 asidluli kwizixa eziziintlawulo zembuyekezo eziphunyezwe IiBhunga;

(2) naluphina 010 lungiso maluqwalaselwe kwintlanganiso yokuqala yeBhunga, ngokuthi kuthathelwe ingqalelo iintuku ezingokuvalwa kweeajenda zeBhunga nekomiti zalo;


Kuqinisekiswe igunya elinikezelwe liBhunga ngomhla wama-26

Oktobha 2011 (umbandela-C33/10/11) ukuba kuqhutyekekwe ngayo yonke imisebenzi (kuquka: ukufumaneka komhlaba, ukuthengwa kwezithuthi, ukwakhiwo kweedepho/iindawo zokuma kwezithuthi neminye imisebenzi engezakheko ezingundoqo) ezithi zibeyimfuneko ekumiselweni ngokukhawuleza kwesiGaba-2, ngokuxhomekeke ekubeni kufumaneke izibonelelo zohlahlo-Iwabiwo-mali nenkxaso-mali.

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REPORT To PORTFOLIO COMMITTEES ON

FINANCE

TRANSPORT ROADS AND STORMWATER

CllT Of til'! 1m IISIlEIUI

~SEl"'1

1 ITEM NUMBER:

FIN 12/10/12

2 SUBJECT

2012 MyCiTi BUSINESS PLAN: PHASES 1A, 1B, AND N2 EXPRESS OF CAPE

TOWN'S MyCiTi INTEGRATED RAPID TRANSIT SYSTEM

ONDERWERP

2012 MyCiTi SAKEPLAN: F~SES 1A, 1B, EN N2 EXPRESS VAN KAAPSTAD

SE MyCiTi- GEi"NTEGREERDE SNELVERVOERSTELSEL

ISIHLOKO

ISICWANGCISO SENDLELA YOKUFEZEKISWA KOMSEBENZI SEZIGABA-1A,

1B, NO-N2 EXPRESS ZENKQUBO YASEKAPA ENGOTHUTHO OLUHLANG-

ENEYO LWEBHASI EZIQUQA ZIBUYELELA I-MyCiTi

LSUA4872/C5103

3 STRATEGIC INTENT lEI Opportunity City

Strategic Objective

Objective 1.4: Ensure mobility through the implementation of an effective public transport system

Programme 1.4(c): Bus rapid transit (BRT) programme

4 PURPOSE

The purpose of this report is a) To obtain the approval of the revised MyCiTi Business Plan, now covering Phases

1A and 1 B and the N2 Express, as the basis for implementing these phases of the

Integrated Rapid Transit (IRT) project; b) To motivate an approach to funding of MyCiTi recurrent costs such that its commitment to MyCiTi from Council's own funds is capped at the actual level of its contribution in the 2011/12 financial year, escalated each year by the City's parameter for overall budget growth. .

5 FOR CONSIDERATION I DECISION

This report is for consideration by:

• The Portfolio Committees of Finance and Transport Roads and Storm water

• The Executive Mayor together with the Mayoral Committee and for decision by Council.

6 EXECUTIVE SUMMARY

In October 2010 Council approved the MyCiTi Business Plan entitled 'Phase 1A of

Cape Town's MyCiTi Integrated Rapid Transit system' (referred to in this report as "the

2010 MyCiTi Business Plan"). Relatively minor amendments to this plan were passed by Council in February and October, 2011.

Phase 1A is in the process of being implemented.

As discussed in the 2010 MyCiTi Business Plan, it is the intention of Council to roll the system out further. The purpose of this report is to seek approval for the 2012

Business Plan for Cape Town's MyCiTi Integrated Rapid Transit (IRT) system, covering Phases 1 A and 1 Band N2 Express (referred to as "the 2012 MyCiTi

Business Plan") as a basis for the continued implementation of the MyCiTi IRT.

The 2012 MyCiTi Business Plan is an integrated business plan, covering the current phase and the immediate next phases. Phase 1 B is a relatively small extension to the initial Phase 1A, and is closely integrated with the Phase 1A routes already approved in the West Coast area. The N2 Express extends the service to the metropolitan South

East, but is not regarded as part of Phase 2. It is aimed at temporarily reducing pressure on the services from the metropolitan South East while rail services are upgraded, but also enables the City to test new approaches before finalising them for application when Phase 2 is implemented. Phase 2 will be the subject of an updated

Business Plan, to be submitted to Council in due course.

A key funding source for MyCiTi is the Public Transport Infrastructure and Systems

Grant (PTISG). Initially the PTISG was intended to be used only for capital infrastructure and related implementation costs. However, as the scale of associated operating costs has become evident in systems both in Cape Town and elsewhere the grant's scope has been widened by national government to help address these costs.

From the Council's perspective the key financial risk lies not in financing the once-off implementation costs (since these are nationally funded), but the associated long-term recurrent costs. Regarding implementation costs, if grant funding were to be reduced, the City can slow its implementation program to match available resources.

However, there is much less flexibility to reduce recurrent costs once the system is in place. In addition, one of the current grant conditions is that PTISG may not be used to cover the difference between system revenue (such as fares and advertiSing revenue) and the 'direct operational costs' defined as consisting of 'fuel, labour, operator administration and vehicle maintenance', which the Business Plan refers to as costs of the vehicle operator companies (VOCs).

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In its 2012 proposal for future PTISG funding from national government the City has indicated that it can contribute to associated recurrent costs on a 50:50 basis up to a cap equivalent to the contribution it made from its own funds in 2011/12 escalated by

Council's overall budget growth parameter which provides for inflation and natural budget growth. The approach of sharing recurrent costs on an equal basis has previously been suggested by National Treasury, and is permissible in terms of current

PTISG conditions.

However, this approach implies that the difference between system revenue and direct vac costs does not exceed Council's cap. It follows that MyCiTi costs be contained and fare levels and levels of service be set such that the funding cap is not exceeded.

The recommendations in this report are aligned with this approach. Such an approach contains the City's financial exposure for MyCiTi at the equivalent of 2011/12 levels.

It is also recommended below that the principle be adopted by Council that non-core costs incurred by other departments indirectly related to MyCiTi services, such as costs related to cleansing and landscaping, but actually more related to improvement of municipal services in areas serviced by MyCiTi, not be treated as MyCiTi operational costs. However, it is proposed that, for an initial period as required for the relevant departments to budget appropriately for such costs in future years, such initial period the costs be funded from the IRT budget, whereafter it must be absorbed by the

City as a non-IRT cost. The principle is further expanded upon in the 2012 MyCiTi

Business Plan.

A report was submitted to Council's September 2012 cycle, noting amendments that were made to the Compensation Policy for Phase 1A, as annexed to the 2010

Business Plan in respect of the above Council Resolution. In the current report it is recommended that such amended policy be extended to Phases 1 Band N2 Express.

7 RECOMMENDATIONS

It is recommended that:

(a) The 2012 MyCiTi Business Plan for Cape Town's MyCiTi Integrated Rapid Transit

(IRT) system, covering Phases 1A, 1 Band N2 Express (referred to as "the 2012

MyCiTi Business Plan") be approved by Council as a basis for the continued implementation of Phase 1A and the implementation of Phases 1 Band N2 Express;

(b) Approval is granted to plan, design and implement the necessary infrastructure, acquire such property, purchase such fleet and contract such operators and professional services, as required to provide the services as described in the

Business Plan, subject to approved budgets, compliance with legal requirements and following prescribed procurement processes;

(c) The City's commitment to funding of MyCiTi recurrent costs as defined in the 2012

MyCiTi Business Plan be capped at a maximum of the actual level of its contribution in 2011/12, being R187 million, escalated each year by the City's parameter for overall budget growth;

(d) The principle is adopted that non-core costs incurred by other departments indirectly related to MyCiTi services, such as costs related to cleansing and landscaping, but t>

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197 actually more related to improvement of municipal services in areas serviced by

MyCiTi, not be treated as MyCiTi operational costs, except for an initial period as required for the relevant departments to budget appropriately for such costs in future years, but that, after such initial period the costs be absorbed by the City, as set out in more detail in the 2012 MyCiTi Business Plan;

(e) That costs be contained and fare levels and levels of service be set such that the funding level established in (c) is not exceeded, unless national funding is secured to cover the difference;

(f) The ED: TR&S, in consultation with the Chief Financial Officer, engage with national

Department of Transport and National Treasury with a view to establishing an agreed approach in the long term that limits the City's contribution to a maximum of approximately the level established in recommendation (c) and that, if an alternative solution emerges in discussion with these national departments, they report back to


(g) The Compensation Policy attached as Annexure F to the 2010 Business Plan be rescinded and the Compensation Policy attached as Annexure F to the 2012 MyCiTi

Business Plan, be adopted and applied to Phases 1A, 1 Band N2 Express;

(h) Council delegates to the Executive Director: Transport, Roads and Stormwater the authority to determine, in consultation with the Chief Financial Officer, the compensation to be offered to minibus-taxi operators, and to determine the process to be followed regarding the offer and payment of such compensation, including the authority:

(i) to effect amendments to Annexure F of the 2012 MyCiTi Business Plan as may be necessary to ensure the successful conclusion of the compensation process, provided that -

(ii)

(1) the total amount of compensation to be paid in accordance with the amended Annexure F does not exceed the amounts for compensation payments approved by Council;

(2) any such amendments are noted at the first possible Council meeting, taking into account dates of closure of agendas for Council and its committees; to exercise any authority reasonably necessary for, or incidental to, the effective implementation of the Compensation Policy, including the authority to sign any compensation offer on behalf of the City, subject to proviso (i)(1) above.

7. AANBEVELINGS

Daar word aanbeveel dat:

(a) Die MyCiTi 2012-sakeplan vir Kaapstad se MyCiTigerntegreerde snelvervoer(GSV)stelsel wat fase 1A, 1 B en die N2 Express dek (genoem die "MyCiTi

2012-sakeplan"), deur die Raad goedgekeur word as 'n grondslag vir die voortgesette implementering van fase 1A en die implementering van fase 1 B en die N2 Express;

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(c) Die Stad se verbintenis tot die befondsing van MyCiTi- herhalende koste soos in die

MyCiTi 2012-sakeplan gedefinieer, tot 'n maksimum van die werklike vlak van sy bydrae in 2011/12, naamlik R187 miljoen, be perk word wat elke jaar teen die Stad se parameter vir algemene begrotingsgroei sal styg;

(d) Die beginsel goedgekeur word dat niekern-koste wat deur ander departemente aangegaan word vir dienste wat indirek met MyCiTi verband hou soos koste vir reiniging en terreinverfraaiing, maar eintlik meer verband hou met munisipale dienste in gebiede wat deur MyCiTi bedien word, nie as MyCiTi-bedryfskoste gehanteer word nie, behalwe vir 'n aanvanklike tydperk soos verlang sodat die betrokke departemente behoorlik vir hierdie koste in toekomstige jare kan beg root, maar dat die koste na hierdie aanvanklike tydperk deur die Stad geabsorbeer word, soos breedvoeriger uiteengesit in die MyCiTi 2012-sakeplan;

(e) Dat koste in toom gehou word en reisgeld- en diensvlakke so vasgestel word dat die befondsingsvlak wat in (c) gestel is, nie oorskry word nie, tensy nasionale befondsing verkry word om die verskil te dek;

(f) Die uitvoerende direkteur: vervoer, paaie en stormwater in oorleg met die uitvoerende direkteur: finansies met die nasion ale departement van vervoer en nasionale tesourie in gesprek tree met die oog op die aanvaarding van 'n ooreengekome benadering oor die lang termyn wat die Stad se bydrae beperk tot 'n maksimum van ongeveer die vlak wat in aanbeveling (c) gestel is en dat, indien 'n alternatiewe oplossing tydens die gesprek met hierdie nasionale departemente gevind word, hulle ter goedkeuring aan die Raad terugrapporteer;

(g) Die vergoedingsbeleid aangeheg as bylae F by die 2010-sakeplan herroep word en die vergoedingsbeleid aangeheg as bylae F by die MyCiTi 2012-sakeplan goedgekeur en toegepas word op fase 1A, 1 B en die N2 Express;

(h) Die Raad aan die uitvoerende direkteur: vervoer, paaie en stormwater die bevoegdheid delegeer om in oorleg met die hooffinansiele beam pte die vergoeding te bepaal wat aan minibustaxi-operateurs aangebied moet word, asook die proses wat gevolg moet word ten opsigte van die aanbod en betaling van hierdie vergoeding, insluitend die bevoegdheid:


(1) die totale vergoedingsbedrag wat ooreenkomstig die gewysigde bylae

F betaal moet word, nie die bed rae vir vergoedingsbetaling wat deur die Raad goedgekeur is, oorskry nie;

(2) daar by die eerste moontlike Raadsvergadering van enige sodanige wysigings kennis geneem word, met inagneming van die sluitingsdatums van agendas vir die Raad en sy komitees;

(ii)

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199 om enige bevoegdheid uit te oefen wat redelikerwys nodig mag wees vir of meegebring word deur die doeltreffende implementering van die vergoedingsbeleid, insluitend die bevoegdheid om enige vergoedingsaanbod namens die Stad te onderteken, onderworpe aan voorwaarde (i)(1) hierbo.

7. IZINDULULO

Kundululwe ukuba:

(a) Isicwangciso sokuFezekiswa komsebenzi saseKapa se-MyCiti sangowama-2012 nenkqubo eHlanganisiweyo engezoThutho oluquqa Iibuyelela (IRT), equka iziGaba-1A,

1 B no-N2 Express (esibizwa ngokuba "sisicwangciso sokuFezekiswa komsebenzi sango-2012 se-MyCiTi") masiphunyezwe IiBhunga njengommiselo/njengesiseko sokuqhubekeka kokumiselwa kwisiGaba-1A nokumiselwa kweziGaba-1 B no-N2

Express;

(b) Kunikezelwa isiphumezo kwisicwangciso, kuyilo nokumiselwa kwezakheko ezisisiseko ezifanelekileyo, kufunyanwe 100 propati, kuthengwe ezo zithuthi, kwenziwe ikhontrakthi yabo baboneleli ngenkonzo neenkonzo zobungcali njengoko kucacisiwe kwiSicwangciso sokuqhutywa komsebenzi, ngokuxhomekeke kwiibhajethi eziphunyeziweyo, ukuthotyelwa kweemfuno zomthetho nokulandelwa ngokufanelekileyo kweenkqubo ezimiselweyo zethenda;

(c) Isibophelelo sesiXeko sokuxhasa ngezimali iindleko ezisisigxina ze-MyCiTi njengoko kucacisiwe kwisiCwangciso sokuFezekiswa komsebenzi se-MyCiTi sango-2012, masigcinwe kumyinge womlinganiselo omiselweyo wegalelo laso langowama-2011/12,

01i-R187 lezigidi, apho uyakuthi unyuke kumnyaka ngaminye ngokomlinganiselo wokuhluma kwebhajethi yesiXeko iyonke;

(d) Makumiselwe umthetho-siseko ongokuba iindleko ezingakho sigxina ezithe zachithwa ngaminye amasebe ngokungathanga-ngqo kwiinkonzo ze-MyCiTi, iindleko ezifana neziphathelene kucoceko nembonakalo-mhlaba, kodwa eziphathelene nophuculo

Iweenkonzo zikamasipala kwimimandla apho inikezelwa iinkonzo ze-MyCiTi, mazingathatyathwa njengeendleko ezisebenzisekayo ze-MyCiTi, ngaphandle kwisithuba sokuqala njengoko kuyimfuneko kumasebe afanelekileyo ukuya kwibhajethi ejoliswe/efaneleke kwezo ndleko kwiminyaka ezayo, kodwa emva kweso sithuba/kwelo xesha 10kuQala iindleko kufuneka ibezezesiXeko njengoko kucacisiwe ngakumbi kwisiCwangciso sokuFezekiswa koMsebenzi sango-2012 se-MyCiTi;

(e) Ukuba iindleko ezo masigcinwe namanqanaba emirhumo namanqanaba eenkonzo mayiqulunqwe ngokwendlela yokuba inqanaba lenkxaso-mali emiselwe ku-(c) ayigqithisi, ngaphandle kokuba kufumaneka inkxaso-mali yeSizwe ukuze kuhlawuleke umahluko;

(f) UMlawuli wesiGqeba kwezoThutho, iiNdlela naManzi esitshilkwi-TR&S, ecebisana neGosa eliyiNtloko kwezeMali mababandakanye iSebe leSizwe lezoThutho noNondyebo weSizwe ngenjongo yokumisela indela ethile ekuvunyelwene ngayo yexesha elide apho ithi ivimbele isiXeko kwigalelo emalunga nenqanaba elimiselwe kwisindululo-(c) kwakhona ukuba kuye kwavela isisombululo esingesinye ngokwezi ngxoxo kunye namasebe esizwe, kufuneka ban ike ingxelo kwibhunga ukuze isisombululo eso siphunyezwe;

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(g) Makurhoxiswe uMgaqo-nkqubo ongeMbuyekezo njengoko uqhotyoshelwe kwisiHlomelo-F kWisiCwangciso sokuFezekiswa komsebenzi sango-2010 kwakhona makwamkelwe ngokusesikweni uMgaqo-nkqubo ongeMbuyekezo njengoko uqhotyoshelwe kwisiHlomelo-F kwisiCwangciso sokuFezekiswa komsebenzi se-MyCiTi sango-2012 kwaye simiselwe ngokweziGaba-1A, 1B no-N2 Express;

(h) IBhunga maligunyazise uMlawuli wesiGqeba kwezoThutho, iiNdlela naManzi esitshi sokuba athabathe Isigqibo ecebisana neGosa eliyiNtloko kwezeMali ngokumalunga nembuyekezo ekufuneka inikezelwe kubaqhubi beeteksi ezincinane, kwakhona athabathe isigqibo ngokumalunga neNkqubo eyakuthi ilandelwe ngokujoliswe kwisinikezelo nentlawulo yaloo mbuyekezo kuquka: negunya:


(1) isixa sisonke sembuyekezo ekufuneka sihlawulwe ngokungqinelana nesiHlomelo-F esilungisiweyo asidluli kwizixa eziziintlawulo zembuyekezo eziphunyezwe liBhunga;

(2) naluphina 010 lungiso maluqwalaselwe kwintlanganiso yokuqala yeBhunga, ngokuthi kuthathelwe ingqalelo iintuku ezingokuvalwa kwee-ajenda zeBhunga nekomiti zalo;


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8 DISCUSSION

8.1 Introduction

In October 2010 Council approved the MyCiTi Business Plan entitled 'Phase 1A of

Cape Town's MyCiTi Integrated Rapid Transit system' (referred to in this report as "the

2010 MyCiTi Business Plan"). Amendments to this plan were passed by Council in

February and October, 2011.

Phase 1A is in the process of being implemented.

As discussed in the 2010 MyCiTi Business Plan, it is the intention of Council to roll the system out further. The purpose of this report is to seek approval for the 2012

Business Plan for Cape Town's MyCiTi Integrated Rapid Transit (IRT) system, covering Phases 1A and 1 Band N2 Express (referred to as "the 2012 MyCiTi

Business Plan"), as a basis for the continued implementation of the MyCiTi IRT.

The 2012 MyCiTi Business Plan is an integrated business plan, covering the current phase and the immediate next phases.

The inclusion of Phase 1A as part of the new attached Business Plan is necessary because Phase 1 Band N2 Express, which are new additions, cannot be coherently discussed without such inclusion. Phase 1A, as presented in the new Business Plan has not changed significantly from its earlier presentation in the 2010 MyCiTi Business

Plan.

Phase 1 B is a relatively small extension to the initial Phase 1A, and is closely integrated with the Phase 1A routes already approved in the West Coast area. The N2

Express extends the service to the metropolitan South East, but is not regarded as part of Phase 2. It is aimed at temporarily reducing pressure on the services from the metropolitan South East while rail services are upgraded, but also enables the City to test new approaches before finalising them for application when Phase 2 is implemented. Phase 2 will be the subject of an updated Business Plan, to be submitted to Council in due course.

The new attached Business Plan thus replaces the October 2010 MyCiTi Business

Plan and its revisions in February and October 2011. In doing so it restates key elements from the earlier Business Plan, although leaves out some detail which is no longer relevant or has been superseded in other ways.

The new plan is also being tabled in the context of important initiatives related to the design and implementation of new arrangements aimed at integrating management and control over all public transport modes and operators in Cape Town under a single authority located within the metropolitan government.

8.2 Background

The improvement of public transport is one of eight key strategic focus areas identified by the City of Cape Town in its Integrated Development Plan (2012 - 2017) for achieving its long-term vision and developmental goals. Public transport plays a vital

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202 role in providing all citizens and visitors with access to opportunities and facilities, whether for economic, education, health, recreation or social purposes.

In February 2007 the City performed a scoping study on an integrated public transport network. The report, City of Cape Town Public Transport Implementation

Framework, saw the potential for a city-wide network of bus rapid transit (BRT) routes and related motorised and non-motorised feeder services to complement the existing rail system as part of an integrated public transport system. The concept for this roadbased system was modelled on highly successful projects in cities worldwide, including Beijing, Bogota, Curitiba, Guayaquil, Los Angeles, Ottawa, Paris, Pereira,

Quito, and Seoul.

In October 2007, a project office was established to plan an Integrated Rapid Transit

(IRT) system in Cape Town. The term 'Integrated Rapid Transit' was used rather than

'Bus Rapid Transit' to emphasise the need for integration with other modes, especially rail, the backbone of public transport in Cape Town. It is also consistent with national government's policy for creating 'Integrated Rapid Public Transport Networks' in cities.

The City is receiving substantial financial support from the national Public Transport

Infrastructure and Systems Grant (PTISG) fund initially established by National

Treasury to improve public transport for the 2010 FIFA World Cup, and now focussed on further transforming public transport in South Africa.

On 27 August 2008, the Council approved the implementation of Phase 1A, which includes the inner city and airport services, and certain routes on the corridor between the inner City and Blaauwberg and Atlantis, in terms of the October 2010 MyCiTi

Business Plan.

Phase 1A serves a region of high growth not served by rail, linking it to the Central

Business District (CBD) and to the rail network. This initial phase had two clear aims to meet the requirements for the 2010 Host City Transport Operations Plan and to leverage this investment to achieve a legacy of improved public transport for the City of Cape Town.

During the course of planning, it became apparent that costs would be significantly higher than initially estimated. In October 2009, the Council agreed to continue with the project, limiting initial implementation to that covered by the then allocation of national funding. Council also decided that initial services must be provided to meet the FIFA requirements for the hosting of the World Cup and the conditions set by the

Environmental Impact Assessment regarding the Cape Town Stadium. Lastly Council resolved that the Chief Financial Officer and the Executive Director: Service Delivery

Integration (subsequently Transport Roads and Major Projects or TR&MP) should investigate further funding.

Flowing simultaneously from the October 2009 meeting a process was initiated to thoroughly review all aspects of the project, including undertaking a due diligence audit and a detailed assessment of the operational modelling by independent professional experts.

In response to the funding constraints national government indicated a readiness to substantially increase its Public Transport Infrastructure and Systems Grant (PTISG) allocations, including a readiness to partly fund operating costs from the grant. This new funding environment was then incorporated into a draft Business Plan, which was

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203 first published in July 2010 for comment from the public and other stakeholders, and which then finalised in October 2010 based on the responses.

While raising a number of detailed issues the national Department of Transport

(NDOT) stated that 'Overall, the MyCiTi Business Plan (2010) is well constructed and

detailed', and added that 'The plan in many respects can serve as an example for

other South African cities'. National Treasury also indicated its support for the business plan in a letter to the City, and stated that it 'sees no impediment to the City

entering into contractual commitments beyond the three-year MTEF period', subject to the requirements of s33 of the MFMA.

Since then the National Department of Transport (NDOT) and National Treasury, through the annual Division of Revenue Acts (DORA) has allocated a total of R3 425 million to the City for Public Transport Infrastructure and Systems (PTIS) over the

2010/11 to 2012/13 financial years, and secured R2 594 million for the two outer years of 2013/14 and 2014/15 combined.

8.3 Progress with roll-out of Phase 1A

In May 2011 the trunk service between Civic and Table View stations started operating together with a number of feeder services in the central city and Table View areas, referred to as Milestone O. The feeder services have made use of available high floor trunk vehicles, with curb side boarding making use of the left front door and steps into the bus interior.

The current Milestone 0 services are being provided by three vehicle operator companies (VOCs), namely Golden Arrow Bus Services (GABS), Kidrogen, and

Transpeninsula, constituted out of existing operators in the areas from the formal bus sector as well as minibus-taxi operators. Negotiations are currently underway to sign

12 year contracts with these service providers to operate vehicles throughout the area of Phase 1A. Assuming acceptance of this business plan such negotiations will be extended to include the area of Phase 1 B.

Since the approval of the 2010 MyCiTi Business Plan:

• the tender was awarded for the provision of an automated fare collection (AFC) system, and the initial fare system which used paper tickets migrated to an electronic card system only. The capabilities of the card system are being progressively enhanced as hardware and software are implemented in terms of the tender. The key specifications of the card system - in particular, the requirement that it be EMV (Euro-Visa-Mastercard) compatible - are set by national regulations.

This is new technology for transport systems globally which presents both advantages in terms of inter-operability with other card systems as well as challenges, which are being addressed as part of the process of development of the system;

• the tender for the control centre was awarded and is currently being implemented, and it is expected that the control centre will be fully operational before Milestone 1 services commence;

• station management services and related activities have been provided on an interim basis by two of the VOCs. The tender for a long term contract to provide

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204 station management services has closed, and tenders are currently in the process of being evaluated;

• the tender for further vehicles has been awarded, including nine meter low floor feeder vehicles. These vehicles are currently being assembled in Cape Town and will be brought into service later in 2012 with the first leg of the Milestone 1 services, planned as the new Salt River - Walmer Estate - City route;

• Early Exit Compensation has been paid out to a total of 86 operators from four taxi associations who form part of the Kidrogen VOC as a result of the adverse impact that the MyCiTi services had on the minibus-taxi passenger numbers in the Table

View area. This resulted in the same number of minibus-taxi vehicles being taken off the routes and physically scrapped. This is supported by the City only in cases where routes are overtraded, and therefore where there would be sufficient public transport for the passengers until the MyCiTi services are provided.

Since the start of operations MyCiTi has provided over 4 million passenger journeys.

Based on the feedback received directly from the public as well as the many media reports, there is overwhelming support and appreciation for the quality of the service experienced on the MyCiTi buses and stations.

8.4 Compensation policy

A report was submitted to Council's September 2012 cycle, noting amendments that were made to the Compensation Policy for Phase 1A, as annexed to the 2010

Business Plan, in terms of powers delegated to the ED: TR&S in consultation with the

CFO. In the current report it is recommended that such amended policy be extended to Phases 1 Band N2 Express.

One of the main amendments makes provision for a variance to the compensation categories and to allow for Early Exit Compensation (EEC) to those operators who have elected to take up the City's offer of compensation in exchange to exit the industry. It is evidenced by the City's database of minibus-taxi information that an oversupply of vehicles exist on various routes, including routes that MyCiTi aims to replace. Therefore, it is important to have this additional category of compensation available to aid the transition process. This variance to the compensation categories will only be allowed if the City is satisfied that sufficient supply of existing public transport services exist to service the current passenger demand. It is important to note that this category of compensation is not an additional amount, but merely compensation that was agreed upon being made available earlier than the commencement of the MyCiTi services.

The finances of the MyCiTi project are discussed in Chapter 8 of the 2012 MyCiTi

Business Plan.

From a financial perspective there are four broad cost components to the MyCiTi system:

• The capital and operating costs arising from infrastructure and system implementation, including compensation of existing operators and those elements of the Project Office responsible for the design and implementation of the system;

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205

• The cost of the key contracted service providers for running public transport operations, including VQCs, the Station Management contractor, the control centre and the AFC contractor;

• The cost of managing MyCiTi operations within the City of Cape Town administration or, in any entity that might be created to do so, as well as the associated marketing costs;

• The cost of services provided by other city departments which have arisen as a result of the MyCiTi system, some of which are closely linked to the system itself

(and defined here as 'core' services), such as insurance, and others which are much more indirectly linked, such as additional street-lighting, landscaping and cleansing along the route. As explained above, these latter costs are included in the financing section of the Business Plan, although are more appropriately viewed not as MyCiTi costs but as growth in services in general, occurring in line with natural city expansion.

Funding recurrent costs

The main sources of funding for the project are:

• National government's PTISG;

• System revenue, including fares and advertising revenues;

• The City's own contributions, mainly for the funding of associated operating costs.

Initially the PTISG was intended to be used only for capital infrastructure and related implementation costs. However, as the scale of associated operating costs has become evident in systems both in Cape Town and elsewhere the grant scope has been widened by national government to help address these costs.

The framework for the PTISG as set out in the Division of Revenue Act (Act 5 of

2012), included in the Business Plan as an annexure, indicates that the PTISG may be used for

• Public transport infrastructure including the development, upgrade and maintenance of dedicated lanes, routes, stations, depots, control centres and related information technology, and fare systems;

• Public transport services include public transport vehicles, security, station management, ticketing services, control centre operations, network management function and contributions towards the economic rights of existing operators;

• Plans related to the above including:

network operational plans including universal access design plans

business and financial plans (including financial modelling, economic evaluation, and operator transition plan)

institutional network management plan

engineering and architectural preliminary and detailed designs

public transport vehicle and technology plans

marketing and communication plans.

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From the Council's perspective the key financial risk lies not as much in financing the once-off implementation costs, but the associated long term recurrent costs. As is evident from the above, both the capital and operating costs relating to implementation may be covered by the grant. Moreover, if grant funding were to be reduced the City can slow its implementation program to match available resources.

However, there is much less flexibility to reduce recurrent costs once the system is in place. In addition, one of the current grant conditions is that PTISG may not be used to cover the difference between system revenue (such as fares and advertising revenue) and the 'direct operational costs' defined as consisting of 'fuel, labour, operator administration and vehicle maintenance'.

In engagements with national government the City has indicated that while it is willing to make SUbstantial fiscal effort to implement IRT - and has already done so - it needs to contain the recurrent cost risks going forward.

In its proposal for future PTISG funding from national government the City has proposed that it is willing to contribute to associated recurrent costs on a 50:50 basis up to a cap equivalent to the contribution of R187 milion it made from its own funds in

2011/12 escalated by Council's overall budget growth parameter which provides for inflation and natural budget growth.

The approach of sharing recurrent costs on an equal basis has previously been suggested by National Treasury, and is permissible in terms of current PTISG conditions.

However, this implies that the difference between system revenue and direct vehicle operational costs does not exceed Council's cap. It follows that MyCiTi costs be contained and fare levels and levels of service be set such that the funding cap is not exceeded.

The recommendations in this report are aligned with this approach.

Such an approach contains the City's financial exposure for MyCiTi at the equivalent of 2011/12 levels.

Core vs non-core costs

On 26 th

October 2011 Council approved a recommendation from the Mayoral

Committee that:

"the Director: IRT Operations and the Director: IRT Implementation conduct a formal review of the need, extent, cost and funding of extending municipal services

(eg cleansing, horticulture, road maintenance, facility maintenance, etc), relating partially to the core operations of the MyCiTi Phase 1A area, and partially to improved but general municipal services in this MyCiTi corridor, and that this report be submitted to the next Council meeting, after consultation with the City's

Executive Management Team".

The 2012 MyCiTi Business Plan distinguishes between the following: a) core IRT services for which budget provision needs to be made in the IRT budgets, even though the services may be provided by other departments;

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207 b) non-core costs, which are costs related to the expansion of general municipal services in IRT areas, to be budgeted for by the relevant departments; c) partly core and partly non-core costs, which are partly core to effective MyCiTi operations but partly serve a wider and more general purpose.

This issue is discussed in more detail in paragraph 8.6 of the 2012 MyCiTi Business

Plan.

All costs are shown in the attached Business Plan, and in estimating system costs all costs have been included, although it probably overstates the direct costs of MyCiTi.

In principle, it is envisaged that core costs be charged to IRT: Operations but that noncore costs are absorbed by the departments; with the proviso that for an initial period as required for the relevant departments to budget appropriately for such costs in future years, such costs be funded from the IRT budget. In most cases agreement has been established between IRT: Operations and the departments as to the allocation of costs, although in some cases, such as in relation to costs regarding surveillance of busways, this is still under discussion. A summary of the allocation of costs is shown in

Chapter 8 of the Business Plan.

8.5 Financial implications

The Director: Budgets confirmed that the medium term estimations as contained in

Table 8.6 of the 2012 MyCiTi Business Plan are aligned with current projections on expenditure growth of key expenditure elements; ie withil1"4l~iH';d i!":~!:'i!!~IiI'l:~.RQ., of the MTREF.

NG UDGET

BEDRYFSBEGROTlNG

These estimations would be subject to annual review process/MTREF modelling. s part QfS" counC~TS

1

SEP 2012

8.6 Legal implications

UHLAHLO LWABI

OLUSETVENZIS 0

.;"

All

A number of contracts let under the MyCiTi project and various contracts being prepared need to comply with legislation such as the MFMA, National Environments

Management Act (NEMA) and the National Land Transport Act. Professional legal services have been made available to the project team to assist with the legal process and ensure compliance where required. Where activities such as public participation and Environmental Impact Assessments (EIA's) are required appropriate specialist and professional aSsistance has been and will be obtained.

The section 33 process and the processes being followed in relation to the structuring of ownership of the buses, as referred to above, are examples of addressing such considerations, and a further report in this regard will be submitted to Council in due course.

The 2012 MyCiTi Business Plan proposes that assets be transferred to various contractors and other external entities. The procedures as set out in the Municipal

Asset Transfer Regulations, issued in terms of the Local Government: Municipal

Finance Management Act (Act No 56 of 2003), are being followed in this regard, and a further report in this regard will also be submitted to Council in due course.

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8.7 Staff implications

Does your report impact on staff resources or result in any additional staffing resources being required? Yes

The establishment of the dedicated MyCiTi Project Office within the Directorate:

Transport Roads and Stormwater, through the departments of IRT Implementation and

IRT Operations has required the creation and approval of a new staffing structure and an additional staffing budget for the MyCiTi Project Team.

These issues are covered in the October 2010 MyCiTi Business Plan, in Chapter 8. As required, further reports regarding any changes to this structure will be submitted to

Council in due course.

8.8 Risk implications

The risks regarding IRT are discussed in detail in Chapter 9 of the 2010 MyCiTi

Does this report and/or its recommendations expose the City to any risk?

(i.e. does it have any adverse influence on service delivery?)

No

Yes

~

[8J

Business Plan. An update of the risks is set out in an annexure to the attached 2012

MyCiTi Business Plan.

8.9 Other services consulted

The assistance of other departments of the Transport Roads & Stormwater

Directorate, the Finance Directorate and Corporate Services Directorate

(Communications) have been obtained in preparing this report or the 2012 MyCiTi

Business Plan (attached).

Regarding services provided by other departments to the MyCiTi IRT consultation included a wide range of departments, including: Cleansing, City Parks, Safety &

Security: Law Enforcement.

ANNEXURES

Appendix A: 2012 MyCiTi Business Plan, covering Phases 1A and 1 B as well as the N2 Express.

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FOR FURTHER DETAILS CONTACT: NI

Oawie Bosch ./~,,/ ~

/ \

IV

NAME

.

CONTACT NUMBERS 0214009135 dawie.bosch@caoetown.aov.za E-MAIL ADDRESS

DIRECTORATE

FILE REF No

Transport, Roads & Stormwater

MyCm Business Plan: 2012

EXECUTIVE DIRECTOR: TRANSPORT ROADS

AND STORMWATER

Ms M Whitehead

COMMENT:

(Author to obtain signature before submission to

Executive Support)

NAME

DATE

LEGAL COMPLIANCE

NAME

TEL

~

REPORT COM PLIANT WITH THE PROVISIONS OF

COUNCIL'S DELEGATIONS, POLICIES, BY-LAws

AND ALL LEGISLATION RELATING TO THE

MATTER UNDER CONSIDERATION. o

NON-COMPLIANT

Comment:

Certified as legally compliant:

Based on the contents of the report ~

Comment: ycoM

MBER

II

Brett Herron

DATE lett 2~'L

MAYORAL COMMITIEE MEMBER: FINANCE

Alderman I Neilson

DATE

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I

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'2-cJ (2-

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Comment:

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