CITY OF CAPE TOWN
Integrated Rapid Transit Project
Contract extending beyond three financial
years:
Provision of professional services: Business
Development, Industry Transition & Operations
Information document as required by Section 33 of the
Municipal Finance Management Act
13 December 2011
2
Contents
CITY OF CAPE T OWN .................................................................................................................1
Integrated Rapid Transit Project ...................................................................................1
1
Executive summary ...................................................................................................3
1.1
1.2
2
The Section 33 process................................................................................................ 3
Programme...................................................................................................................... 4
Introduction.................................................................................................................4
2.1
2.2
3
Contract dealt with in this document..................................................................... 4
Requirements of Section 33 of the MFMA............................................................. 5
The vision of an integrated public transport system for Cape Town ......6
3.1
The City of Cape Town’s responsibility for public transport......................... 6
3.2
Cape Town’s IRT system ............................................................................................. 7
MyCiTi branding ..................................................................................................................................... 7
BRT in context ......................................................................................................................................... 7
3.3
BRT to combine with rail to form the IRT system ............................................. 8
3.4
Design principles........................................................................................................... 9
4
Phased implementation...........................................................................................9
4.1
4.2
Phase 1 ............................................................................................................................11
Phase 2 ............................................................................................................................11
5
Business structure of the IRT system and the contracting process ...... 12
6
Description of the professional services contract....................................... 14
7
Why the contract is proposed to extend for eight years ........................... 29
8
Financial implications for the City.................................................................... 30
9
Further documentation ........................................................................................ 31
10
Where to submit your comments ................................................................. 31
Annex 1: Extract from Municipal Finance Management Act, 53 of 2003 ..... 33
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1 Executive summary
Cape Town’s MyCiTi Integrated Rapid Transit (IRT) system is a bold initiative to
transform the public transport sector over time by integrating all public
transport modes into a vastly improved and coherent system for the user.
Among the modes to be integrated are road-based rapid bus services on trunk
and feeder routes, Metrorail passenger rail services, minibus-taxi and
conventional scheduled bus services and metered taxi services. Improved
pedestrian, bicycle access and park-and-ride facilities are integral elements of
the system.
Forming part of the multi-modal IRT system is a Bus Rapid Transit (BRT) system,
to be implemented as the rapid bus component of the IRT system. It consists of a
network, provided throughout the City, of trunk bus and feeder bus services that
will integrate with the Metrorail passenger rail services and other modes.
In the long term all public transport modes forming part of the high quality IRT
system are proposed to be branded as MyCiTi services. A small IRT bus service
with MyCiTi branding, between the Cape Town airport and the inner city, was
introduced in May 2010, prior to the 2010 Soccer World Cup. This was the
beginning of the implementation of Phase 1 of the IRT system.
This was supplemented with a starter service between Table View and the CBD,
including feeders in the Table View and inner city areas, and a trunk service in a
dedicated bus way between the two areas, using 42 buses,
The purpose of this document is for the City to provide information to the public
and certain key government departments regarding one of an IRT-related
contract which is proposed to be awarded for a period spanning more than three
municipal financial years. This is linked to an invitation to these parties to
comment on this proposal, forming part of a statutory process in terms of
Section 33 of the Municipal Finance Management Act.
1.1 The Section 33 process
Where a contract is intended to span more than three municipal financial years,
Section 33 of the Municipal Finance Management Act requires the municipality
to provide background information and to invite written comment from the local
community, and to write to specific government departments to obtain their
comments. The City is required to initiate the public information process by
advertising the matter at least 60 days prior to the Council meeting at which any
of the relevant contracts are to be approved. The invitation to comment was
planned to be published on 13 December 2011.
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1.2 Programme
It is intended that the Section 33 process will be focussed on allowing for the
commencement of this contract by the start of the 3rd quarter of 2012. This will
be after the minimum statutory period of 60 days between the date of
advertising and the date of a possible decision of Council.
2 Introduction
The purpose of this document is to inform the public, certain government
departments and other stakeholders, as required by the Local Government:
Municipal Finance Management Act, 56 of 2003 (MFMA), of the intention of the
City to award contracts for a period spanning more than three municipal
financial years to service providers it needs to help operate the IRT System.
Where a municipality intends to award a contract to a service provider and the
financial obligations to the contractor span more than three municipal financial
years, it must follow a procedure set out under Section 33 of the MFMA. This
Information Document sets out the requirements of Section 33 and outlines the
content, objectives and estimated costs of the projects involved.
The implementation of the Integrated Rapid Transit (IRT) system by the City of
Cape Town will require the City to procure the goods and services needed
through a number of contracts to be awarded to services providers. These
contracts will in combination provide the necessary infrastructure and vehicles,
and procure service providers to undertake the operations of vehicles and
supporting services – and the procuring of professional and specialist services
aimed at achieving this.
Infrastructure contracts include the construction of bus ways, stations and
depots, which are essentially civil engineering projects with contract periods
planned to be less than three years in duration, and thus Section 33 do not apply
to them.
Operations contracts affected by this process include the four contracts types
dealt with in this Information Document, which together provide for the
operation of vehicles, management of the fare system, maintenance of the
control centre, manning of stations and the provision of the security necessary to
protect passengers and project management services required to administer
Phase 1 of the IRT system.
2.1 Contract dealt with in this document
The description of the contract to which this document relates is provided
Chapter 6.
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2.2 Requirements of Section 33 of the MFMA
Annex 1 to this document contains the full text of Section 33, for reference
purposes.
Section 33 requires as follows:
Section 33(1)(a)
Section 33(1)(a)(i)
Section 33(1)(a)(ii)
Section 33(1)(b)
Section 33(1)(b)(i)
Section 33(1)(b)(ii)
Section
33(1)(b)(iii)
Section
33(1)(b)(iv)
The municipal manager must, at least 60 days before the
Council meeting where a contract is to approved, inform
certain parties of the intention to award the contract by:
Issuing an information statement summarizing the
municipality’s obligations and draft contract documents
to the public and inviting comments and representations;
and
Soliciting the views of –
• National and Provincial Treasury
• National Department responsible for local
government
• National
Department
having
functional
responsibility related to the service being
delivered (in this case the National DOT).
The Council must prior to the award by the Municipal
Manager of the contract, take into account:
The financial obligations on the Council for each financial
year of the contract;
The impacts of these obligations on its revenue;
Any comments received from the local community and
other interested persons;
Written views and recommendations of the National and
Provincial departments referred to above.
Section 33(1)(c)
The Council must adopt a resolution in which it:
• Determines that it will have sufficient budget or
revenue to pay for the contract;
• Approves the entire specific contract document to
be awarded; and
• Authorizes the municipal manager to sign the
contract.
Section 33(2), (3)
and (4)
These sections specify exclusions from the Section 33
process and do not apply to the IRT contracts, or have
provisions that repeat provisions summarised above.
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3 The vision of an integrated public transport system for
Cape Town
3.1
The City of Cape Town’s responsibility for public transport
Public transport is a key mechanism for achieving the City’s transport vision of
providing a sustainable transport system that moves all its people and goods
effectively, efficiently and safely without compromising people, the economy or
the environment. Provision of a quality public transport service is essential to
ensure a substantial shift from private to public transportation, thus increasing
public transport market share and revenue generation.
It is increasingly acknowledged that effective and efficient public transport is
critical to the social and economic development of South African major urban
areas, and by implication, of the country as a whole. Currently much of public
transport in South Africa is unsafe and inconvenient to both citizens and visitors.
National, provincial and city government have, accordingly, made the
improvement of public transport a high strategic priority. This growing
awareness of the importance of improving public transport is occurring
alongside an understanding that responsibility for public transport in the major
cities in South Africa is best devolved to metropolitan governments.
The rationale for such devolution is that metropolitan governments are the
sphere of government primarily responsible for the servicing and management
of the urban ‘built environment’. Cities make the key planning decisions
influencing urban form; and they are responsible for most of the infrastructure
related services which, in reality, determine such urban form. Public transport is
integral to the management of the ‘built environment’ and thus needs to be run
in a manner which is fully consistent with other ‘built environment’ related
services.
The National Land Transport Act of 2009 as well as a variety of national
government policy statements and initiatives gives substance to this trend
towards devolution of public transport responsibilities. This devolution will
have major impact on the nature of metropolitan governments since once
responsibility for public transport is fully devolved – and particularly if the rail
services are included – the service will be significantly larger in scale than the
current electricity function in the cities.
The existing system, for which the City will increasingly become responsible, is
widely regarded as inadequate. Subsidised bus and rail systems have relatively
low fares but peak services are uncomfortable and off-peak services are
inconvenient – where they exist at all. Direct subsidies are not provided to the
minibus-taxi industry, which disadvantages this industry as compared to
scheduled bus and rail services, and adds to the cost of its passengers. This
results in minibus taxi operators chasing down passengers and competing for
ridership in a manner that is dangerous, whilst the phenomenon whereby taxis
wait in off-peak periods to fill the vehicle with passengers before moving is
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frustrating and unpredictable for users. This is resulting in burgeoning private
motor car use and a sharp rise in traffic congestion with pressures for costly
road expansions.
3.2
Cape Town’s IRT system
Cape Town’s IRT system is a bold initiative to transform the public transport
sector over time by integrating all public transport modes into a vastly improved
and coherent system for the user. This must clearly be done hand-in-glove with
other service providers, such as Metrorail. Among the modes to be integrated are
road-based rapid bus services on trunk and feeder routes, Metrorail passenger
rail services, minibus-taxi and conventional scheduled bus services and metered
taxi services. Improved pedestrian, bicycle access and park-and-ride facilities are
integral elements of the system.
Forming part of the multi-modal IRT system will be a Bus Rapid Transit (BRT)
system, to be implemented as the rapid bus component of the IRT system. It will
consist of a network, provided throughout the City, of trunk bus and feeder bus
services that will integrate with the Metrorail passenger rail services and other
modes.
MyCiTi branding
In the long term all public transport modes forming part of the IRT system are
proposed to be branded as MyCiTi services. A small IRT bus service with MyCiTi
branding, between the Cape Town airport and the inner city, was introduced in
May 2010, prior to the 2010 Soccer World Cup. This is the beginning of the
implementation of Phase 1 of the IRT system. Phase 1 is the first of four
envisaged phases to complete BRT throughout the City of Cape Town.
Phase 1 involves the provision of bus services that will link the inner city area
with the airport and service a corridor between Atlantis, Blaauwberg / Table
View, Dunoon, Montague Gardens and the inner city (the Atlantis corridor), all
the way to Hout Bay. It includes feeder services in the inner city and elsewhere in
this corridor and includes newly developed high-density residential areas and
low-income communities.
BRT in context
Key amongst the strengths of BRT is its flexibility both in serving varying
passenger demand levels as well as penetrating the existing urban fabric.
• By easily combining different vehicle sizes and frequencies it can be
tailored to serve a wide range of demand levels conveniently and cost
effectively.
• As a road based system it is able to capitalize on the extensive road based
urban growth experienced in recent decades and with its network of trunk
and feeder routes is able to penetrate at a much finer level into the urban
fabric.
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• Unlike rail, which tends to divide urban space, BRT permits much greater
ease of movement across transport routes, thereby facilitating growth
along corridors; it tends to ‘knit up’ rather than ‘cut up’ urban space.
At the same time, BRT is able to provide a high quality of service which, as
indicated above, is essential to facilitate a growing move of passengers from cars
to public transport:
• Dedicated bus ways along trunk routes permit fast movement along
congested corridors.
• Enclosed stations with pre-boarding fare collection and verification enables
large numbers of passengers to board and alight in quick time permitting a
rapid service.
• Level boarding and high quality fittings widen access to the disabled while
offering a comfortable service to all.
• Short waiting times between buses add to convenience and should
encourage more people to use public transport.
The business model for running BRT systems has been refined internationally
over the years to maximize efficiencies while accommodating pre-existing
operators in the running of new systems:
• Modern information and communications technology permits vehicle
movements to be monitored and controlled centrally and services
continually tailored to better suit passenger needs.
• Centralised vehicle control and automatic fare management enables vehicle
operations to be outsourced to more than one company fostering
competition to serve the market while avoiding the chasing down of
passengers which arises from current competitive practices.
• Existing minibus-taxi and scheduled bus operators are able to be
accommodated competitively within the new system providing
opportunities for economic empowerment of informal service providers.
Based on these capabilities BRT is increasingly viewed internationally as the
most sophisticated and effective form of road based public transport available
and by national government in South Africa as an appropriate and cost effective
approach especially in the context of lower density South African cities. This has
led to significant funding support through the Public Transport Infrastructure
and Systems Grant (PTSIG) to metropolitan governments embarking on such
initiatives.
3.3
BRT to combine with rail to form the IRT system
Cape Town already has a substantial rail network. While low urban densities
make it costly and inappropriate – other than in a few limited cases – to seek to
extend public transport services through expansion of this rail network, the new
road based systems need to be thoroughly integrated with the rail services as
well as other forms of feeder services. The City’s vision is thus not mode-based
but driven by a need for integration of the various public transport modes into
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the most effective possible single seamless system, with the vision of it operating
under the MyCiTi corporate identity and branding.
For this reason the City has decided to start by implementing the rapid bus
component of the IRT system. It is hoped that the system will be in place
throughout the City over the next 15 to 20 years. This would involve the
establishment of a full public transport network, encompassing high quality rail
and road services, which will place at least 75% of Cape Town’s population
within 500 metres of the system.
3.4
Design principles
The planning of the system is guided by a number of principles:
Quality – delivering a car-competitive service that is based around customer
needs, including rapid travel times and frequent services, few transfers, safety
and security, service integration, universal access, comfort and convenience,
clean vehicles, and helpful staff.
Equity – ensuring that all segments of society receive an equal, high-quality
public transport experience, especially through consideration of the special
needs of low income earners, women, children, the elderly, and those with
physical disabilities.
Security – a system which gives customers full confidence in their personal
safety and security.
Sustainability – a system that is sustainable in terms of economic viability, the
environment, and social equity.
Integrity – implementation in an open, transparent, and participatory manner
4 Phased implementation
The full implementation of the bus component of the IRT system has been
divided into four Phases.
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Phased implementation of the IRT bus network
Phase 1 focuses on the central city and the corridor towards Blaauwberg,
Dunoon and Atlantis. It is currently intended that this will then be followed in
Phase 2 by the more pressing public transport needs of the metro south east,
including Khayelitsha and Mitchells Plain. This would then be followed by
Phases 3 and 4 to include the Durbanville area and Delft/Helderberg area
respectively as shown below. However, the precise order of roll-out is subject to
consultation and investigation and will depend to some degree on the need to
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serve routes that pay for themselves first so as to establish a financial base for
extending to less profitable routes.
In parallel, the IRT will seek to integrate other modes, such as rail, into a
seamless and effective public transport system.
4.1 Phase 1
Phase 1 includes high quality public transport services in the inner city and
extends up the west coast to include the rapidly growing residential area in
Blaauwberg north of the Diep River, as well as the low-income communities of
Atlantis, Mamre, Dunoon and Doornbach and the industrial areas of Montague
Gardens and Paarden Island. This corridor faces some of the worst peak period
congestion levels in the City, especially to the south and east of the bridges over
the Diep River. A key motivation for starting with this corridor within the City is
that no rail service currently exists in that part of the city. The main Phase 1
trunk route intersects with the rail network at Woodstock station. Given the way
the City’s rail system functions, all rail routes pass though this station. This
results in the Phase 1 service creating a very significant linkage of the west coast
area of the city to the rail network.
The Phase 1 area also includes public transport in the inner city and the Atlantic
seafront, from Dunoon and Century City to Salt River; and services in Hout Bay.
4.2
Phase 2
The second phase will be developed in the highest public transport demand
areas, including the south east areas such as Mitchell’s Plain and Khayelitsha. In
October 2011 Council approved the commencement of detailed system planning
and design of Phase
2.
Figure 1. Rail demand and proposed new strategic transport
corridors
Phase 2 of the
MyCiTi project is
defined as the Metro
South East (MSE)
area and is responsible for the
majority of the total
public transport
activity in the
metropolitan area.
Years of planning,
research and investigation have identified critical missing transport
corridors in the
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public transport system serving the MSE which could be served by BRT. These
corridors, as schematically depicted on Figure 1, comprise of the following:
• MSE to Wynberg / Claremont
• N2 Corridor (Klipfontein and Main Road)
• Symphony Way
• MSE to West Coast via Nigeria Way and Jan Smuts Drive
The Khayelitsha to CBD Rail service is running at over capacity (as indicated in
red on Figure 1) until it connects with northern lines towards Bellville and
Southern lines towards Claremont and Wynberg. This dynamic identifies the
actual desire for movement towards the Bellville and Wynberg / Claremont area
but due to the lack of direct transport links to these areas, commuters travel a
roundabout way to their final destination.
A BRT service could address these critical public transport missing links as
schematically shown on the figure above.
Over time, the road based public transport demand between the MSE and the
Cape Town CBD has grown significantly. This is due to passengers moving from
rail to both bus and mini-bus taxi services because of the lack of capacity and
perceived safety and security concerns by passengers on the rail system.
PRASA has responded in their recent Rail Plan by identifying the Chris Hani
(Khayelitsha) to CBD rail service as a ‘modernisation and demonstration’ project
which will however only be operational during 2015. In the interim additional
transport capacity is required and could possibly be provided by means of an
interim express BRT service via the N2. A target implementation date of
December 2013 has been determined for the implementation of this service,
should it be found to be practically and financially feasible.
It must be stressed that all of the above proposals are conceptual only and
subject to further detailed investigation which will require the appointment of
specialist consultants. As indicated, Council gave authority to proceed with
planning for phase 2 conditional to budgetary provision being in place.
In order to meet the targeted implementation date of December 2013 for the
implementation of the possible BRT service to the MSE Council also granted
authority 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 this service conditional to works
not being abortive should a portion of the service not be proceeded with and
budgetary provision being in place.
5 Business structure of the IRT system and the contracting
process
At present there is planned to be six main entities / contractors comprising the
business structure of the City's anticipated Phase 1 of the IRT system, which
together will be responsible for operating the system:
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•
the City of Cape Town;
•
a proposed Municipal Entity responsible for public transport that will
manage and control the system for the City – a function which initially is
proposed to be fulfilled by an IRT operations department within the City;
•
two to three vehicle operating contractors;
•
the Fare System contractor;
•
the Control Centre contractor; and
•
the Station Services contractor.
The organisational chart below illustrates contract structure and the
interrelationship between the entities.
A key part of the deliverables of the professional services contract to which this
s33 process relates is to reassess this organisational structure and to provide
specialist input to ensure that the objectives of the project are achieved in the
most financially sensible and sustainable manner.
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6 Description of the professional services contract
The contract is for the provision of specialist professional services for the MyCiTi
integrated rapid transit system relating to business development, industry
transition and operations. These services relate to the implementation of
primarily phases 1 and 2 of the implementation of IRT with some support
required for the completion of the first part of phase 1. Services are required for
twelve functional areas as described below.
Functional Area 1: Project management services
a)
The activities to be undertaken include:
(i)
The provision of standard services described in of Board Notice 52 of 2010: Guideline
Scope of Services and Tariff of Fees for Persons Registered in terms of the Project
and Construction Management Professions Act, 2000, (Act No. 48 of 2000) published
in Government Gazette No. 33102, or relevant standards applicable to project
management of operations, as amended or amplified upon in the project brief below,
including:
•
Overall project management services regarding this contract, including the
development and regular updates of Gantt charts outlining project programming
and progress, including monthly progress reports
•
Further professional project management services regarding the IRT Operations
Department, as required.
•
Project risk management.
(ii) Any or all of the Additional Services described in of Board Notice 52 of 2010:
Guideline Scope of Services and Tariff of Fees for Persons Registered in terms of the
Project and Construction Management Professions Act, 2000, (Act No. 48 of 2000)
published in Government Gazette No. 33102, as amended, the cost of which will be
covered by a contingency or time based allowance.
(iii) Record-keeping of all relevant meetings (participation list and minuting) including
meetings attended only for minuting purposes
b)
The Service Provider shall ensure that each functional area will be conducted in an integrated
and co-ordinated manner.
c)
The project management services required will primarily focus on more detailed project
management regarding the contract and the IRT Operations Department, within the context of
any overall project management services that may be provided to the two relevant IRT
departments: IRT Operations and IRT Implementation. The Service Provider will be required to
report, regarding project management, to the IRT high-level project management contractor,
being the Cape Town IRT Project Managers Joint Venture (“PMIRT”), or a contractor replacing
such contractor over time.
d)
Outputs include:
•
Monthly progress reports
•
Effective project management, including regular Gantt charts
•
Input on risk management to PMIRT
•
Minutes
Functional Area 2: Business structure
a) Institutional plan
a)
The activities to be undertaken include:
(i)
Reassessing the operational contract structure used in Phase 1A.
•
Conducting such reassessment taking into account lessons learned in the IRT, in
similar systems elsewhere in South Africa, or elsewhere in the world
•
Providing all relevant professional advice as needed to implement changes to the
operational contract structure.
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(ii) Conducting the required investigations and drafting the required reports required for
the establishment of the envisaged Municipal Entity responsible for public transport
as input to the City’s Transport Department which is charged with leading this
process.
•
Providing all relevant professional governance and institutional support needed in
the process of formalising the Municipal Entity.
•
Providing professional advice regarding the organigram of the Municipal Entity,
along with position descriptions for the required staff
(iii) Providing appropriate legal advice regarding the implementation of the proposed
institutional structure
b)
Outputs include:
(i) Report on reassessment of operational contract structure
(ii) Reports and documents required regarding the establishment of the Municipal Entity
b) Refinement of operating cost model and fare policy
a)
The activities to be undertaken include:
(i)
Refinement of operating cost model, as part of an iterative process together with the
system modelling undertaken by the System Planning division of IRT
(ii) Finalisation of given operating cost structure based on the proposed business plan
(iii) Refinement of the proposed fare policy and tariffs in conjunction with the proposed
business structure, working from the modelling done by the System Planning division
of IRT.
b)
This stage enables the results from the previous System Plan to be reconciled with the findings
and conclusions of the Business Plan. To an extent, elements of the Business and System
Plans require an iterative process to optimise efficiencies and cost levels. The Business
Structure will influence how routings are developed. The routings then need testing through an
Operational Cost Model to determine if the tested scenarios meet expected fare and subsidy
minimisation objectives.
c)
Outputs include:
(i) Reports on modelling of operational costs, as part of an iterative process with the
System Planning division of IRT.
(ii) Input to the Business Plan(s)
(iii) Cost modelling as required, forming part of negotiations of the vehicle operator
contracts.
c) Revenue flows
a)
The activities to be undertaken include:
(i)
Reassessment of how revenues flow from the customer and other sources of revenue
to each of the key parties (e.g. vehicle operators, automated fare collection contractor,
control centre contractor, municipal entity, City, etc.), taking into account the relevant
current legal framework.
(ii) Provision of the precise calculations required for determining the revenue shares of
each actor.
(iii) Recommending changes to the current model (of required).
b)
The flow, control, and disbursement of revenues to the relevant parties underpins the credibility
and effectiveness of the business model. The development of a robust, transparent process
will give each party the appropriate level of confidence to participate in the initiative.
c)
Outputs include:
(i) Report on reassessment of revenue flow
(ii) Ongoing professional advice regarding implementation of changes to established
systems of revenue flow
Functional Area 3: Financing plan and advice
a) Financing options and advice
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1)
The activities to be undertaken include:
a.
b.
c.
d.
e.
2)
A critical reassessment of funding provided for the project to date.
Development of new financing options. This could include: city-wide parking levy and
property value capture along corridors, fuel levy, MyCiTi management of parking
management in return for fees (see below).
Calculation of likely revenues to be generated from the different options.
Engaging with over spheres of government, and with other municipalities and
appropriate bodies, regarding past and future funding, as directed by the Employer.
This could include system infrastructure financing, operator vehicle financing,
operational maintenance financing and financing of other relevant elements of the
system.
The project’s financing encompasses several components, including capital infrastructure,
vehicle procurement, and on-going infrastructure maintenance. The Service Provider shall
devise financing strategies for each all three of these project components. The available
options to be explored include the financing sources given in the following table:
Activity Area
Financing Source
Infrastructure
Local, provincial, and national general tax revenues
Fuel taxes / fuel levies
Road pricing / congestion charging
Parking and loading fees
Improved enforcement of traffic regulations
Land value taxation and development contributions
Sales or leasing of commercial space near stations
Advertising
Merchandising
Commercial banks
Municipal bonds
Loans from the World Bank
Loans from regional development banks
National and sub-national development banks
Emissions trading
Emerging private investment options (e.g. PPPs)
Private sector operators / fare revenues
Equipment (e.g.
vehicles)
Bus manufacturers
Bi-lateral export banks
International Finance Corporation
Commercial banks
Local, provincial, and national general tax revenues
Fuel taxes / fuel levies
Road pricing / congestion charging
Parking and loading fees
Private sector operators / fare revenues
Maintenance
3)
4)
5)
The Service Provider shall analyse such options for applicability to the IRT System. The
Employer will provide the Service Provider with the capital infrastructure cost estimates
required to conduct this analysis.
Regarding land value capture: Several mechanisms exist to capture value from the
appreciation of property and land values from the development of a high-quality public
transport system. These mechanisms include the Land Benefit Levy (LBL), development taxes,
private sector contributions in exchange for development rights, and the development of
municipal-owned properties. The Service Provider shall deliver a detailed evaluation of the
potential revenue that could be generated from property development and land value capture
along the system’s corridors. The Service Provider shall make recommendations regarding the
form of a land value capture system for Cape Town.
Where the Employer decides to use land value capture mechanisms, it may direct the Service
provider to assist in the implementation of such mechanisms, or parts thereof, including:
a.
b.
Articulation of the step-by-step activities required to secure implementation
Assistance in fulfilling the legal actions required for implementation
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c.
d.
e.
6)
Identification of relevant property developers along Phase I and Phase II corridors
Fulfilment of property development negotiations with developers
Assistance to the City in the actual delivery of land value capture from the projects.
Outputs include:
a. Deliver a land value capture study detailing the options for capturing land value
appreciation from property development along the corridors along with an estimation
of the potential revenue from a land value capture and property development
programme
b. Reports on other activities listed above.
c. Funding proposals.
d. Reports on engagements with other spheres of government and with funders.
b) Clean Development Mechanism / Carbon trading
1)
The activities to be undertaken include:
a.
b.
c.
d.
2)
Develop a methodology or utilise an existing methodology that has been approved for
the United Nations Framework Convention on Climate Change (UNFCCC) to prepare
and submit a fully-completed application to the UNFCCC for emission credits from the
CDM.
Articulate the process and resources required by the City to manage the emission
credit process into the future.
Provide professional support regarding any further phases regarding applications,
monitoring, reporting, or other steps required to obtain the relevant funding.
Conduct modelling, as required, to draft applications, monitoring or other reports.
Outputs include:
a. A fully-completed application to the UNFCCC for carbon credits or similar
mechanisms for the relevant phase(s), aimed at establishing the carbon emission
benefits of the project, and at obtaining the relevant funding.
b. Other reports and monitoring activities.
c) Fuel levy
1)
The stated policy of the City of Cape Town is to gain access to the National fuel levy through a
direct re-distribution to the City. The amount to be allocated to the City is based upon the
amount of fuel levy collected from filling stations within the boundary of the City of Cape Town.
This re-distribution could / would also encompass any future fuel levy tax that could be applied
by the Provincial or National Government.
2)
Implementation of this policy requires the co-operation of National Government. The Service
Provider shall conduct a direct outreach effort to assist in achieving the implementation of this
policy. Specifically, the Service Provider shall undertake the following activities:
a.
b.
c.
d.
e.
3)
Develop presentation materials on the City's case to Provincial and National
Governments for the re-distribution of the fuel levy.
Conduct briefing sessions with the relevant Provincial and National Government
officials
Engage with other municipalities to build alliances in this regard, as well as other
relevant for a.
Develop and distribute outreach materials on the motivations behind the redistribution of the fuel levy.
Minute the Provincial and National Government interactions and report on the
progress.
Outputs include:
a. Reports on the above activities, as directed by the Employer.
b. Legislation to implement recommendations, as appropriate.
Functional Area 4: Tender and contract development
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a) Incentive structure
1)
The activities to be undertaken include:
a.
b.
c.
Reassessment of the incentives used to date in IRT operational contracts to ensure
the high-quality performance of each of the contracted parties
Proposed detailing of the rewards and penalties to be utilised in affecting quality
performance.
Providing appropriate legal advice, including legal drafting input required into all
operational contracts, required to achieve the incentive structure accepted by the
Employer.
2)
The development of the various incentives affecting each vested stakeholder is a fundamental
precursor to developing the various contractual agreements between the parties. This analysis
shall scrutinise each party’s incentive structure from the perspective of both positive and
negative behaviours. The incentives shall include the rewards and penalties related to each
party’s performance.
3)
Outputs include:
a. Report on reassessment of mechanism to incentivise quality performance.
b. Ongoing professional advice regarding implementation of changes as directed by the
Employer.
b) Vehicle operator (VO) contracts
1)
The activities to be undertaken include:
a.
b.
c.
d.
e.
f.
2)
Assessing VO contracts used by the Employer or other cities to date, and drafting
interim and long-term VO contracts, as appropriate.
Developing the specifications for the VOCs, through a Prospectus.
Developing a tender document for the VO contracts.
Providing comment on NDOT standard BRT-type contracts, and engaging with NDOT
as appropriate.
Guidance to the City regarding the recommended procedures and strategies for the
direct operator tendering/negotiations, including advice from international advisors,
taking into consideration lessons learned in other BRT systems.
Professional support during the process of negotiations, as required, including cost
modelling.
Outputs include:
a.
b.
c.
Prospectus(es), setting out the specifications of the VO service and contracts.
Draft contract(s).
Drafts memos and reports as appropriate regarding the above activities.
c) Automated Fare Collection (AFC) contract
1)
The activities to be undertaken include:
a.
b.
c.
d.
Assessing AFC contracts used by the Employer or other cities to date, taking into
account the operational management of such contracts, to learn lessons to benefit the
activities below.
Developing the specifications for the AFC contractor for the Phase(s) covered by this
tender, through a Prospectus.
Developing a tender document for the AFC contractor, including an appropriate
contract.
Providing professional advice and assistance
(i) during tender evaluation, as required, during negotiations with preferred bidders,
as authorised by the Bid Adjudication Committee (BAC) or another appropriate
structure;
(ii) regarding matters of a technical nature, including relevant technologies or
systems, banking services agreements, etc regarding the AFC system;
(iii) to ensure effective quality control and project management of the contractor,
once appointed.
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2)
Outputs include:
a.
b.
c.
Prospectus(es), setting out the specifications of this tender and contract.
Draft contract(s).
Drafts memos and reports as appropriate regarding the above activities.
d) Control Centre (CC) contract
1)
The activities to be undertaken include:
(i)
Assessing CC contracts used by the Employer or other cities to date, taking into
account the operational management of such contracts, to learn lessons to benefit the
activities below.
(ii) Developing the specifications for the CC contractor for the Phase(s) covered by this
tender, through a Prospectus.
(iii) Developing a tender document for the CC contractor, including an appropriate
contract.
(iv) Providing professional advice and assistance
(i) during tender evaluation, as required, during negotiations with preferred bidders,
as authorised by the Bid Adjudication Committee (BAC) or another appropriate
structure;
(ii) regarding matters of a technical nature, including relevant technologies, banking
services agreements, etc regarding the CC system;
(iii) to ensure effective quality control and project management of the contractor,
once appointed.
2)
Outputs include:
a.
b.
c.
Prospectus(es), setting out the specifications of this tender and contract.
Draft contract(s).
Drafts memos and reports as appropriate regarding the above activities.
e) Station Management (SM) contract
1)
The activities to be undertaken include:
(i)
Assessing SM contracts used by the Employer or other cities to date, taking into
account the operational management of such contracts, to learn lessons to
benefit the activities below.
(ii) Developing the specifications for the SM contractor for the Phase(s) covered by
this tender, through a Prospectus.
(iii) Developing a tender document for the SM contractor, including an appropriate
contract.
(iv) Providing professional advice and assistance
(i) during tender evaluation, as required, during negotiations with
preferred bidders, as authorised by the Bid Adjudication Committee
(BAC) or another appropriate structure;
(ii) regarding matters of a technical nature, including relevant
technologies or systems, etc regarding the SM system;
(iii) to ensure effective quality control and project management of the
contractor, once appointed.
2)
Outputs include:
a)
b)
c)
Prospectus(es), setting out the specifications of this tender and contract.
Draft contract(s).
Drafts memos and reports as appropriate regarding the above activities.
f) Advertising contract
1)
The activities to be undertaken include:
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a)
b)
c)
d)
2)
Assessing advertising contracts used by the Employer or other cities to date, taking into
account the operational management of such contracts, to learn lessons to benefit the
activities below.
Developing the specifications for the advertising contractor for the Phase(s) covered by
this tender, through a Prospectus.
Developing a tender document for the advertising contractor, including an appropriate
contract.
Providing professional advice and assistance
•
during tender evaluation, as required, during negotiations with preferred bidders, as
authorised by the Bid Adjudication Committee (BAC) or another appropriate structure;
•
regarding matters of a technical nature, including relevant technologies or systems,
etc;
•
to ensure effective quality control and project management of the contractor, once
appointed.
Outputs include:
a)
b)
c)
Prospectus(es), setting out the specifications of this tender and contract.
Draft contract(s).
Drafts memos and reports as appropriate regarding the above activities.
g) Contracting retail and parking management opportunities
1)
The activities to be undertaken include:
a.
b.
c.
d.
e.
f.
2)
Conducting feasibility studies regarding retail opportunities on or around MyCiTi
premises, or of parking management in any areas service by MyCiTi
Developing the tender documents to procure tenants for use of retail opportunities, or
to procure contractors to provide parking management services;
Providing professional advice and assistance during tender evaluation, as required,
during negotiations with preferred bidders, as authorised by the Bid Adjudication
Committee (BAC) or another appropriate structure;
Provide professional advice regarding relevant matters of a technical nature, including
relevant technologies or systems, etc
Assessing whether it is appropriate for the City to use the Public Private Partnership
(PPP) mechanism to procure retail tenants, or to develop appropriate retail and other
facilities on premises used by MyCiTi, or in the vicinity of such premises, or to provide
parking management services as an alternative to these being provided by the SM
contractor.
If the use of such a mechanism is supported by the City, assist in identifying the
appropriate opportunities, and in the drafting of the necessary documentation, and
facilitation of the PPP process.
Outputs include:
a.
b.
c.
d.
Prospectus(es), setting out the specifications of the retail / parking management
opportunities offered.
Draft contract(s) / tender(s).
Report(s) on the assessment of using PPP as a method of optimising retail
opportunities / parking management service opportunities around MyCiTi premises,
as indicated above.
Draft further memos and reports as appropriate regarding the above activities.
Functional Area 5: Business Development – Ancillary support
a) Peer review
1)
The activities to be undertaken include:
•
•
•
Assistance in establishment of Expert Panel to help provide oversight and advice to
the project;
Management of Expert Panel sessions;
Procurement of travel logistics related to experts coming from outside the Cape Town
area.
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b) Legal advice
The activities to be undertaken include:
Legal opinions
Drafting of terms and conditions of use of the MyCiTi system, and a range of similar
documents
Drafting of Bylaws and regulations as may be required
Drafting of memos / submissions
Drafting of correspondence
c) Lessons learned in IRT / BRT
The activities to be undertaken include:
Conduct interviews / workshops with IRT staff and consultants to draw out lessons
learned in the Cape Town IRT team regarding the Business Development, Industry
Transition and Day-to-Day Operations components
Conduct interviews / workshops with staff and consultants in similar projects elsewhere
in South Africa to draw out lessons learned in the same areas
Prepare a draft report for circulation and comment to interested parties
Convene a cross-city forums where these lessons are presented by the Service
Provider, shared / debated
Finalise a report on lessons learned, with detailed recommendations on the issues
falling within the scope of this tender.
d) Advisory support to subsequent planning activities and Phase I
implementation
The activities to be undertaken include:
Inputs to Infrastructure Design Plan
Inputs to Phase 1B and 2 construction
Inputs to Phase IB and 2 start-up.
Functional Area 6: Industry transition – Strategy
Transition strategy assistance
The activities to be undertaken include:
Development of step-by-step strategy and planning for transitioning existing operators (i.e.
scheduled bus operators, and the minibus taxi industry and any other industry
stakeholders) to the new business model;
Assessment of each of the issues listed below.
Based on lessons learnt in Phase 1A, some of the key decisions to be made within the transition
strategy include:
•
What are the most appropriate mechanisms for engaging the minibus-taxi and bus industry and
other affected industry stakeholders in a manner that produces a positive result for both the
City and the industry?
•
To what extent will the new business model and previous business model co-exist (both
spatially and temporally)?
•
How will communications with the industry be managed?
•
How will existing bus subsidies be affected?
•
What should the role of SANTACO, mother bodies and other structures be in this Phase(s)?
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•
How should the bus companies be treated with regard to VOC groupings?
•
How many VOCs are appropriate for this Phase(s)?
•
Reassessment of the compensation policy used in Phase 1A, and development of a revised
compensation policy or alternative strategy.
•
How will existing licensing issues be addressed and integrated within this initiative?
•
How will the taxi recapitalisation programme be integrated with this initiative?
•
How will entrepreneurship be developed for operators taking compensation with the aim to
build new business?
Outputs:
•
Transition Strategy reports will represent the principal plan for re-structuring the industry. The
Transition Strategy will particularly require co-ordination with the Provincial Government, and
will be reassessed as further milestones or sub-phases of Phases 1B and 2 are rolled out.
•
Assessment reports on the above or related issues.
Functional Area 7: Industry transition – Capacitation of existing industry
a) Memoranda of Understanding with industry
The activities to be undertaken include:
Cultivation of a rapport with industry officials in order to jointly craft the wording of
Memoranda of Understanding (MOUs) for a whole phase or different sub-phases or
milestones as appropriate
Development of a model MOU document for City and Industry officials to review
Assistance in organising agreements over MOU wording
Launch of MOUs.
Some of the typical elements of an MOU would include the statement of common objectives between
the City and the industry, such as:
Statement of shared objective of service to the customer
Development of priority infrastructure to improve operational efficiency (e.g. more
exclusive lanes for operations)
Target of improving operator profitability and market stability
Intent to move more existing car users into public transport
No loss of employment during transition.
Outputs:
•
MOU(s)
•
Launch(es)
b) Facilitation and professional support
The activities to be undertaken include:
Establish a database of experienced and professional facilitators, legal advisors and
business advisors available to render services to the VOCs. Information of professional
listed in the database must include their charge out rates, qualifications, relevant
experience, and availability.
In consultation with the City and the affected association representatives, identify and
select VOC Facilitators to manage the process of establishing vehicle operator companies,
and facilitating the negotiations of the Vehicle Operator contracts.
Contract the VOC Facilitators on terms acceptable to the Employer (the facilitators in turn
shall be required to procure and contract the services of Legal advisors and Business
advisors acceptable to the industry parties that they serve).
Pay the facilitators’ invoices as approved by the Employer
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In consultation with the City, identify and select at least 8 (eight) Taxi Liaison Specialists
who will provide day-to-day support and capacitation to the minibus-taxi industry
Procure, manage, and administer the Taxi Liaison Specialists
Provide in-depth training on BRT and market transformation for the Taxi Liaison
Specialists
Conduct audit of all minibus taxi operations in Cape Town, including association
structures, sub-structures, employment figures, and individual positions
Assist in the development of outreach materials and strategies
Conduct workshop sessions for the minibus industry
Engage all minibus taxi representatives on a one-on-one basis.
The Taxi Liaison Specialists will be chosen in a consultation between the Service Provider and the City.
These individuals will possess significant previous experience in interacting with the minibus taxi
industry in the Cape Town area, or will have worked directly with the minibus taxi industry. At least onehalf of the Taxi Liaison Specialists should be fluent in the Xhosa language in addition to English. These
individuals will possess excellent communications and interpersonal skills. These individuals must also
possess good word processing skills and be able to draft quality written progress reports.
Outputs
•
Sourcing of professionals as required for activities to be undertaken.
•
Fully trained Liaison Specialists
c) Industry outreach materials
The activities to be undertaken by the Service Provider include:
•
•
•
Determination of the form and language requirements of the outreach materials
Development of the outreach material content.
Video targeted to minibus taxi industry x 2 (one for the start of Phase 2, another to be
produced 3 years later or as directed by the Employer)
o Scripting of video targeted
o Procurement of background music to video
o Production of simulation video targeted to minibus taxi industry
o Duplication of video x 1 000.
An information package will be developed for the minibus and bus industry, which includes a range of
distinct stakeholders, such as owners, directors, drivers, and other employees. Each stakeholder within
the industry carries with him or her unique concerns and questions over a project of this type. Thus, the
outreach materials must ideally be crafted to each stakeholders needs. Further, the form and type of
outreach material must be appropriate to the audience. Many of the materials shall be produced in the
Xhosa language. The form of the outreach materials may include flyers, talking points or Frequently
Asked Questions (FAQs), and posters.
Regarding the Video: Service Provider shall produce two videos describing the proposed system and
providing a simulation of its operation. Each video will be 12 to 15 minutes in length. The Service
Provider shall work closely with the City to develop a script for each video. The Service Provider shall
then produce the full videos.
e) Industry training workshops
The activities to be undertaken include:
Delivery of training and outreach courses to assist private scheduled bus
companies (e.g. Golden Arrow Bus Services) make the transition to the new business
structure
Delivery of training and outreach courses to help the minibus taxi industry make
the transition to the new business structure.
Delivery of specialist training, post contracting, to hone the skills of staff and
managers of the new bus companies.
Formal workshops will conducted with each major audience. These workshops will initially begin the
process of building trust with the industry and then proceed to build-up additional detail for the projects.
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Ideally, the bus and minibus industry will join the process as full partners who will contribute to the
actual system design.
Outputs
•
Facilitating workshops
•
Preparing material to be used for workshops
•
Identifying and booking suitable venues
f) Study tour for operators
The activities to be undertaken include:
Assistance in the selection of 100 industry representatives for participation in up to 6 study
tours
Management and procurement of the logistical support to implementing the study tour (air
flights, hotels, daily subsistence allowances, local support fees in the Cities to be visited,
etc.)
Assistance in the management of the actual study tours
Assistance in the preparation of study tour summary reports.
As has been the case in other successful BRT cities, it is useful to expose industry representatives to
actual system examples prior to full project commitment. Such visits help to build the confidence
required, and help in team and relationship building.
g) Workshops
The activities to be undertaken include:
Assistance in procuring suitable venues for week-long workshops for industry
representatives
Management and procurement of the logistical support to implementing the workshops
(transport, accommodation, expert facilitators, team building events, etc.)
Assistance in the management of the actual workshops
Assistance in the preparation of workshop reports.
Functional area 8: Surveys and Data Management
Surveys
• Design and undertake all public transport surveys
• Other surveys to obtain relevant operator information to input into compensation and
other financial models
• Capturing of all surveyed data for analyses by internal staff
The activities to be undertaken by the Service Provider include:
•
Recruitment of survey and capturing staff
•
Remuneration and transport provision for survey staff
•
Quality control mechanisms
•
Data storage facilities
Outputs
• Captured data in accepted and agreed to formats
• Development of compensation and other financial models
• Liaison with Regulatory entity wrt operating licence issues
Operational Support
The IRT Operations Business Unit is responsible for the operation of the IRT services. The Business
Unit is recruiting staff to undertake the necessary functions. Due to the specialised nature of the
operations and increased workload in the lead-up to and immediately following the introduction of the
various milestones of the IRT roll-out programme professional consulting services are required to
provide specialist advice and support necessary for the successful introduction of these milestones. The
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intellectual capital, systems and experience developed in the initial milestone introductions needs to be
carried forward into subsequent sub-phases and phases of IRT roll-out.
The Business Unit covers four functional areas, discussed below, being:
•
Vehicle (Bus) Operations –
•
Facilities Management –
•
Client Services –
•
Business Unit Support. –
Functional Area 9: Operational Support – Vehicle operations
This includes the following main functions:
(i) Management of the outsourced Vehicle Operator Contracts relating to the allocation,
scheduling, staging and deployment of the fleet.
(ii) Management of the outsourced Vehicle Procurement and Maintenance Contracts with the
Vehicle Manufacturers or Service Agent and supervising maintenance and repairs
undertaken by the Vehicle Operator or other Service Providers and management of tools
and equipment at Depots.
(iii) Management of the Control Centre relating to the monitoring and management of fleet
movements, CCTV surveillance of fleet and passenger movements, emergency radio
communication and electronic display of passenger information.
(iv) Training including Driver Training, Product Training and Driver Improvement Training.
The activities to be undertaken include:
a) Providing specialist advice and support on public transport operations
•
•
•
•
•
•
•
•
Scheduling and timetables
Service notices
Vehicle procurement
Vehicle maintenance and repair
Driver and product training
Vehicle licensing and roadworthying
Operator permits
Training of contractors in bus maintenance
Outputs
Reports
Advisory assistance
b) Event services
Providing support in the development and management of event services and communication.
Outputs
IRT resourcing plans for events
Costing and Quotations
Service notices for contractors
Event communication notices
Service co-ordination and monitoring
Advisory assistance
c) Surveys and Monitoring
•
Design, undertake and analyse public transport surveys relating to passenger and vehicle
movements.
•
Design undertake and analyse monitoring programmes relating to key performance indicators
and contract compliance.
Outputs
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Reports
Advisory assistance
d) Training
To provide advice and support to ensure appropriate training material is developed for application by the
Vehicle Operating Companies and other role-players to ensure a high professional standard of service
is provided to customers.
Outputs
Reports
Training Manuals
Advisory assistance
Functional Area 10: Operational Support – Facilities management
This includes the following main functions:
(i) Management of the outsourced Station Management Contracts relating to Station Operations,
Station Parking, Horticulture, Maintenance and Cleaning of Stations, CCTV Surveillance
Systems, Station Parking, Stops, Bus Lanes and associated Cycle Lanes, Lighting, Fencing,
Signage and Markings and display of Passenger Information including electronic display
systems.
(ii) Management and Maintenance of the Fixed Assets relating to Facilities including, Stations,
Depots, Staging Areas, CCTV Surveillance Systems, Station Parking, Stops, Bus Lanes and
associated Cycle Lanes, Lighting, Fencing, Signage and Passenger Information Systems and
Displays.
The activities to be undertaken include:
a) Providing specialist support relating to the management and maintenance
on public transport facilities
•
•
•
•
Stations, station parking, stops and bus lanes
CCTV Surveillance
Passenger Information Displays
Lighting, Fencing, Signage and Markings
Depots
Staging areas
Cycle Lanes
Landscaping
Outputs
Reports
Maintenance Manuals
Advisory assistance
Functional Area 11: Operational Support – Client services
This includes the following main functions:
(i) Responding to and analysing passenger complaints.
(ii) Designing, producing and displaying passenger information and notices.
(iii) Developing and implementing new communication technologies
(iv) Establishing and running stakeholder groups relating to existing and potential users, industry
role-players, interested and affected parties and government.
The activities to be undertaken include:
a) Client Services and Passenger Information
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•
•
•
•
•
Provide advice and support in responding to and analysing customer complaints.
Provide advice and support in designing passenger information displays for routes,
fares, timetables and displays.
Provide advice and support and develop systems for communicating passenger
through various media e.g. mobile media.
Printing and placing of passenger displays on buses and at the IRT stations stops and
other places as required.
These activities could include, as directed by the Employer:
o Development of system routing map options
o Production of samples of final Phase I and full system routing maps
o Development of concept for local area maps at Phase I stations
o Production of samples of local area maps for Phase I stations
o Development of signage options for vehicles, stations and terminals
o Production of samples of vehicle, station and terminal signage
o Development of concept for station and vehicle audio announcements
o Production of samples of station and vehicle audio announcements.
Outputs
•
•
•
•
•
Response to complaints
Customer complaint reports.
Display of Passenger information
New media for communicating passenger information
Advisory assistance
b) Stakeholder Structures
•
•
To provide advice and support in establishing and running stakeholder groups relating
to existing and potential users, industry role-players, interested and affected parties
and government
Provide support in responding to and analysing stakeholder queries.
Outputs
Functioning stakeholder groups
Stakeholder databases
Reports, record keeping and minutes.
Functional Area 12: Operational Support – Business Unit
Business Unit Support includes the following main functions:
(i) Management of the outsourced Fare Management Contract relating to Smart Card provision,
Distribution, Pin activation. Loading value, Fault testing. Card replacement, fare collection, card
validation, access control and transactional data downloading.
(ii) Setting up and maintaining data management systems, analysing data and trends, measuring
Key Performance Indicators.
(iii) Develop and maintain the Service Charter and MyCiTi rules.
(iv) Identification, evaluation and assessment of risks and development and maintenance of risk
management plans.
(v) Develop and maintain Health and Safety Plans and reporting systems.
(vi) Develop and maintain Security and Inspector requirements and co-ordinate and integrate with
other Security and Traffic Service sectors.
(vii) Business development support.
(viii) Develop and maintain contracts and service level agreements.
(ix) Contract Administration.
The activities to be undertaken include:
a) Setting up systems and processes for the IRT operations
The setting up of systems and processes to ensure sound data management processes and procedures
are in place to effectively manage IRT operations from a contractual, business and efficiency
perspective.
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•
•
•
•
•
•
•
•
Outputs
Contractual monitoring of both the operator and supplier contracts.
Gathering System Information to enable appropriate modelling review of the interim
service to be undertaken. This will include the refinement of timetables required for the
start-up and economical continuation of the interim service (i.e. passenger demand
analysis).
Setting up systems for the monitoring and reporting on the functioning of the routes,
stations and depots (facilities).
Analysing data to support the modelling processes.
Analysing data to ensure that service providers meet the requirements laid out in their
contracts and service level agreements so that appropriate authorisation of payment can
occur.
Assisting in developing the systems and procedures required for fare management at IRT
stations and on IRT buses.
Developing and implementing work processes and protocols as well as resourcing and
deployment plans for IRT operations functions.
Ad Hoc assistance as required.
Develop and maintain standard operating procedures and work process manuals.
Develop and maintain contract monitoring and data management systems.
Develop and maintain resourcing and deployment plans for IRT Operations functions
Advisory assistance
b) IRT Operations: Organisation plan development, facilitation, coordination
and integration.
The development of an operations business plan to support the role out of the future IRT phases.
•
•
This would include the facilitation of business processes and development of key performance
indicators.
The integration and coordination across internal and external sections and departments.
Outputs
Business Plans
Advisory assistance
c) Health and Safety
Provide advice and support on Health and Safety relating to operations
•
•
Providing Health and Safety oversight and compliance according to legislation and best
practice.
Advice on safety related signage
Outputs
Reports
Health and Safety Manuals
Advisory assistance
d) Safety and Security
Providing advice and support to ensure the safety of IRT passengers and the security of IRT assets.
Outputs
Reports
Safety and Security Manuals
Advisory assistance
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e) Inspection services
•
Design and analyse public transport ticket inspection services , or improvements required
regarding ticket inspections and compliance
Outputs
Reports
Advisory assistance
f) Contract administration
•
Providing advice and support relating to contract interpretation, certification of payments and
the issuing of penalties.
Outputs
Reports
Advisory assistance
g) Quality management
•
•
Certification and auditing compliance to be ISO registered.
Assessment and maintenance
Outputs
Quality management system
Quality Reports
Advisory assistance
7 Why the contract is proposed to extend for eight years
The IRT project comprises four phases spanning over 15 to 20 years. Experience
during phase one has shown that a single team of specialist consultants is
required to effectively conclude a particular phase of the IRT project irrespective
of how long it takes to implement.
The approach the City has adopted to industry transition is that of negotiating
the vehicle operator contracts in terms of section 41 of the National Land
Transport Act, instead of embarking on an open tender process. Whilst this
approach is practical and likely to ensure a smoother transition, the risk of
delays in meeting deadlines is higher than in case of an ordinary tender process.
In Phase 1A and 1B where there are 8 taxi associations and 2 bus companies who
are directly affected, it took almost 3 years to engage, consult and capacitate the
industry role-players to the point where contract negotiation can commence in a
meaningful way.
In Phase 2 of the project more than 60 taxi associations are likely to be affected.
The industry transition process will therefore take much longer than 3 years to
conclude the long term vehicle operator contracts. Full role-out of Phase 2 is
projected to take 8 years. The appointment of the specialist consulting team
required for Phase 2 therefore needs to be appointed for this period.
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It is essential that all related activities like the undertaking of surveys and the
printing and publishing of project related information be included in the
appointment as experience has shown that separate procurement processes for
these services inevitably result in delays to the project and compromise the
chain of accountability. There are numerous reasons for a single appointment for
an entire phase of the project with the key ones been as follows:
• Due to IRT been a new development in the country there is not a readily
available pool of experienced specialist consultants. Thus the unique
experience and institutional knowledge developed during the initial parts
of a phase needs to be carried through to the end of the phase.
• The success of a phase is dependent on the relationship and trust
developed between the professional team and the taxi and bus industries
involved in that phase.
• The success of a project phase is very much dependent on maintaining
and building on the initial momentum developed in the initial stages of a
phase.
• A key principle of successful projects is developing and maintaining an
integrated and motivated professional team to take the project through to
its successful conclusion.
A change in the professional team mid-way during a phase would have very
negative consequences as the unique experience and institutional knowledge
would be lost, the relationship and trust would have to be rebuilt, the project
momentum would be lost and team motivation would have to be rebuilt.
This will result in considerable delay in implementation of Phase 2 of the IRT,
and in significant additional cost as a new team, appointed through a new tender,
acquaints itself with the intricacies of processes run previously, and the legal,
technical and process issues involved.
Taking all the above into account, and taking into account the extensive nature of
Phase 2, it was concluded that it will take at least eight years to implement Phase
2, and therefore that eight years is the appropriate period also to appoint the
contractor who will provide the above services.
8 Financial implications for the City
Section 33 of the MFMA requires that the City’s Council must be assured that
contracts to be concluded for a period spanning more than three financial years
will, once awarded, be financially sustainable and affordable to the City for the
full period of the contracts. This implies that the services delivered by these
contracts must generate sufficient income to cover costs, or alternatively, the
City must make provision for deficits expected to be incurred by the contracts to
be funded through other funding sources, such as from its own revenue or grants
from National and Provincial spheres of government.
The financial impacts of this contract will be managed as follows:
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•
The contract is in essence for the provision of a panel of specialist
consultants to be dawn upon as required, and to provide specialist
service, and top up services, that cannot be provided by the City team. The
contractor will have no claim against the City if their services are required
for less time than the maximum provided by the contract, and therefore
the Director: IRT Operations can ensure that the contractor’s services are
used only in as far as approvals have been given for phases as
appropriate, by Council, and that funding is management appropriately in
this regard.
•
This work falls fully within the categories regarding which national
Government provides grant funding through the Public Transport
Infrastructure and Systems Grant (PTISG), as published annually in the
Division of Revenue Act (DORA). National Treasury has allocated
significant funds to the City in this regard for the current Medium Term
Economic Framework period, and it is expected that it will continue to do
so, and that the kind of work envisaged I this contract will form within the
grant conditions provided by in the DORA. Therefore it is not expected
that this contract will have to be paid for from rates.
9 Further documentation
In addition to this Information Document, persons wishing to comment may
wish to access the draft contract (and the remainder of the tender document)
subject to the Section 33 process and further documents relevant to the MyCiTi
Projects.
Additional documents are available on the IRT page of the City’s website at
http://www.capetown.gov.za/en/irt/. This includes:
•
•
•
Draft tender/contract: Click on “Procurement” and follow the links
regarding “Provision of professional services: Business Development,
Industry Transition & Operations”
Business Plan for Phase 1A: click on “Business Plan”, and follow the links
IRT Progress Reports: click on “Monthly project reports” and follow the
links.
10 Where to submit your comments
Written comments by the public must be submitted by 10 February 2012, and by
the relevant government departments by 22 June 2012 to:
Executive Director: Transport, Roads and Storm water
(For attention: Ms Beverley Ball)
City of Cape Town
PO Box 298
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Cape Town
8000
Email:
Fax:
Beverley.ball@capetown.gov.za
021 400 5697
Queries you may have about this Information Document should be directed to
the following contact person:
Beverley Ball at:
Telephone:
Email:
021 400 9139 or
beverley.ball@capetown.gov.za
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Annex 1: Extract from Municipal Finance Management Act,
53 of 2003
S33 Info doc: Provision of professional services: Business Development, Industry Transition & Operations