AGENDA & MINUTES. of a CORPORATE SERVICES & HUMAN RESOURCES COMMITTEE MEETING. held on

Transcription

1 & MINUTES of a CORPORATE SERVICES & HUMAN RESOURCES COMMITTEE MEETING held on

2 SOL PLAATJE MUNICIPALITY Office of the Municipal Manager KIMBERLEY 17 October 2017 MEMBERS: Cllr F Kruger (Chairperson) Cllr O J Mokae Cllr P P Kwagile Cllr M Louw Cllr P M Mohapi Cllr B Springbok NOTICE is hereby given that a CORPORATE SERVICES & HUMAN RESOURCES COMMITTEE MEETING of the City Council will be held in the Council Chamber, Civic Offices, Kimberley on TUESDAY, 31 OCTOBER 2017 at 11:30. CLLR F KRUGER CHAIRPERSON

3 i Corporate Services & Human Resources 31 October 2017 Index RES NO ITEM NO & HEADING PAGE ANNEXURE A. APPLICATION FOR LEAVE 1 B. CONFIRMATION OF MINUTES 1 1. Corporate Services & HR: (CORP12/10/17-CORP19/10/17) C. PRESENTATION None D. MATTERS REFERRED BACK: OCM C79/08/17:EM152/06/17: Submission of costing of the additional (new) positions in the organisational structure as approved by Council 2 Distributed at Council meeting of 2 August 2017 E. DIRECTORATE REPORTS Directorate: Corporate Services 1. Human Resource Report Report Sol Plaatje - Injuries on duty for the period 7 11 September Organisational Development Report: 20 September 16 October

4 1 SOL PLAATJE MUNICIPALITY & MINUTES OF A CORPORATE SERVICES & HUMAN RESOURCES COMMITTEE MEETING HELD ON TUESDAY, 03 OCTOBER 2017 AT 11:30. PRESENT: Members: Cllr F Kruger (Chairperson) Cllr P P Kwagile Cllr B Springbok Cllr P M Mohapi Cllr M Louw (from 11:53) ED: Corporate Services (K R Sebolecwe), Manager: Human Resources (T Phuti), Manager: Organisational Development (M v Zyl), Manager: Risk Management (W L Wiese), Manager: Support Service (P J van der Walt), Manager: Administration (C Pizer), Gender Manager (P L Mabula), Senior Personnel Assistant (K October), Manager: Committee Services (C Senekal) and the Administrator: Committee Services (D Botha) A. APPLICATION FOR LEAVE Cllr O J Mokae ABSENT WITHOUT LEAVE None B. CONFIRMATION OF MINUTES: 1. That the agenda and minutes of the Corporate Services & Human Resources Committee meeting held on 4 July 2017 be adopted and approved. 2. That the record of the Corporate Services & Human Resources Committee meeting held on 1 August 2017 be noted. 3. That the record of the Corporate Services & Human Resources Committee meeting held on 5 September 2017 be noted.

5 2 Ordinary Council meeting 31 October August 2017 D. MATTERS REFERRED BACK 1. C79/08/17:EM152/06/17: Submission of costing of the additional (new) positions in the organisational structure as approved by Council (Ms. Z.L. Mahloko) 28 June 2017 Purpose The purpose of this item is to submit the financial implications of additional positions (posts) as per the resolution of Council (C239/06/16 dated 29 June 2016). For noting / for decision by The following options exist in terms of noting / for decision by: Council (to approve) The item/report has NOT been considered by a portfolio committee. This item is for decision by Council. Background The Government Gazette No dated 17 January 2014, Local Government, Regulations on appointment and conditions of employment of Senior Managers, in terms of Chapter 2 (two), regulates the staff establishment procedures. Clause 3 of the regulations relates to the responsibilities of Council in as far as human resource planning is concerned, with subsection 1 (one) referring to the number of Senior Managers and their competencies, whilst subsection 2 (two) refers to the responsibility of council to assess existing human resources in terms of race, gender and disabilities. Subsection 3 (three) requires Council to plan human resources within the available budgeted funds for the remaining period of the relevant Medium Term Revenue and Expenditure, being the term of office of council , and LTREF Clause 4 (four) of the regulations refers to the staff establishment and places the responsibility to the Municipal Manager in as far as compliance with the regulations, in as far as the review of the organisational structure as well as post local government elections so as to ensure an alignment between the municipal strategic objectives and municipal core and support functions (subsection 3). After the review of the organisational structure, the municipal manager is further tasked with the responsibility of determining permanent ad fixed posts and subsection 5 (five) further requires the municipal manager to have due regard of the financial implications of such posts to the municipality and the budgetary implications (include cost of providing services, tariffs, ratios, sustainability, affordability and productivity). The resolution of Council as referred to above complies with Clause 7 (b) and (e). It is for this reason that this item is submitted. Since the taking of the resolution, the TASK Evaluation Committee had a responsibility to evaluate all newly created positions to enable the Finance Directorate to determine the costs of the new positions and analyse the impact of the additional costs on budget and tariffs, in as far as affordability, costs of providing service and running the administration as well as productivity and performance of the organisation.

6 3 Ordinary Council meeting 31 October August 2017 D. MATTERS REFERRED BACK On the other hand, Sol Plaatje as a secondary city is benchmarked against other secondary cities and proportionately with Metropolitans, in terms of budget, tariffs, personnel size or spending on employee costs. The ratio that has been determined and used as a benchmark is 27% to 33% of operational costs of the municipality, which has a direct impact on tariffs since the municipality is fully funded from rates and tariff based service charges. The municipality strives to bring its employee related costs to 33% maximum at any given point, target which must be supported by Human Resources Recruitment and monitored and reported on by the Chief Financial Officer. For the municipality to be able to increase its proportion of budget on repairs and maintenance, remain liquid enough to settle its debt as they become due (creditors, including bulk services and staff costs), as well as make significant contributions to capital replacement reserve fund, as well as maintain a lowest of 2 months cost coverage against a preferred cost coverage of 3 months, controlling growth in personnel costs is highly required, and hence these regulations places this responsibility to the Municipal Manager and to Council as they have the prerogative to approve the budget. It is further indicated in this item that Council took a decision that all positions other than Senior Managers as per these regulations and as defined in the MFMA and Municipal Systems Act, shall be capped at T17, whilst Senior Manager and Municipal Manager appointed after 1 July 2014 shall be remunerated in terms of upper limits gazette for the duration of their contracts, and senior managers and municipal managers appointed prior to this period shall be remunerated in terms of the remuneration policy or scales which were in place prior to the date of 1 July 2014, being the TASK Grading System. It is therefore submitted, the financial implications of the positions newly created in the organisational structure, is being presented. However, the budgetary implications have not been taken into account at this stage. These will be presented in the planned Mayoral Committee that precedes Ordinary Council Meeting of August It should be highlighted that the position of Legal Expert on Labour Relations and Commercial Contracts has become critical and funding is required urgently with regards to this position. To date, the municipality has spent R (2015/16: R ) on Legal Fees for 2016/17 financial year. This expenditure relates to consultancy, advisory, opinions and litigations. It is believed that with an expert appointed on a fixed term contract, these costs will reduce significantly and the only costs that will remain will be for representation during litigations. Annexures Council Resolution C239/06/16 dated 29 June Annexures of the Council Resolution C239/06/16 Financial Implications Report of the newly established positions as per the organogram ANNEXURE Distributed at the Council meeting of 1 August 2017 Motivation It is therefore motivated that Council must take into consideration the budgetary implications of the new positions under the current economic environment, affordability issues as well as the staff establishment size as compared with similar sized municipalities. Performance Recognition strategies must be considered to motivate staff to perform and go an extra mile (beyond their job descriptions) rather than falling for pressures to increase in

7 4 Ordinary Council meeting 31 October August 2017 D. MATTERS REFERRED BACK personnel numbers, higher salaries at very low productivity levels. Except for cases in legal and engineering services, where there is clear skills shortage or workforce shortages, and where the municipality must respond to professionalization of local government initiatives. Personnel Implications The as-is organogram (prior to the new organogram approved by council) had 2190 posts, and the new organogram (newly adopted) has 2701 number of positions. Only 1561 posts in the organogram were funded and as such filled, whilst in the new organogram, 1561 positions are funded and as such filled. The value of funded vacancies as per 2017/18 budget year is approximately R6, 8 million (estimated). The vacancy rate on funded positions (new organogram) 42%. Financial Implications The financial implications of the newly created positions is approximately R70 million. This amount is for only 147 of 276 new posts created, see annexure attached. It is emphasised that the Mayoral Committee must note that budgetary implications have not be taken into account in this regard. Legal Authority and Implications Council Resolution C239/06/16 Municipal Systems Act as amended Regulations on Conditions of Service and appointment of Senior Managers Chapter 2, 3 and 4. Municipal Finance Management Act and its regulations MFMA Circular 72 (ratios) and 82 (cost containment) Consultation The Municipal manager, all Executive Directors and Senior Managers were consulted. Contact Person Ms Z.L. Mahloko x 6500 Ms K.R. Sebolecwe x 6717 Mr G. H. Akharwaray x6101 Executive Mayor Ald. O.M. Matika x 6269 Chief Financial Officer: Ms Z.L. Mahloko For technical enquiries Chief Financial Officer Z.L. Mahloko

8 5 Ordinary Council meeting 31 October August 2017 D. MATTERS REFERRED BACK At the Mayoral committee meeting held on 21 June 2017 it was resolved per resolution EM152/06/17: 1. That it be noted that the filling of vacant posts being a challenge and that the Mayoral Committee members will ensure that contract workers be absorbed. 2. That management deals with the establishment of the unit with report back As recommended. At the Advanced Ordinary Council meeting held on 1 August 2017 it was resolved per resolution C79/08/17: 1. That the item be referred to the Corporate Services Committee for discussions since it was not entertained by the committee. 2. That the ED: Corporate Services provides a name list of all contract workers at the next meeting. At the Corporate Services & Human Resources committee meeting held on 3 October 2017 it was resolved per resolution CORP12/10/17: That the item be held in abeyance for the CFO to present the item with the financial implications at the next committee meeting RECOMMENDATION: 1. That Council notes the financial implications of the newly created positions in the organogram approved as per Council Resolution C239/06/ That due to changes in local government influenced by legislation and economic conditions, and the implications of personnel costs on tariffs and cost of services, a Remuneration Policy needs to be developed, to address these issues. 3. That the policy must prescribe a Remuneration Committee, which will consider the implementation of Upper Limits, annual salary adjustments, staff benefits and allowances as well as Staff Performance Incentive Policy Application.

9 6 31 October 2017 Directorate: Corporate Services E. DIRECTORATE REPORT 1. Human Resource Report: September 2017 T Phuthi 16 October 2017 Purpose The purpose of this item is to provide information to the Committee on the work executed by the Human Resource Section during the month September Background None Annexure Description Human Resource Report: ANNEXURE p Motivation None Personnel Implications None Financial Implications None Legal Authority and Implications None Consultation None Contact Person T Phuthi Acting Human Resource Manager Contact number: X 6353 FOR INFORMATION

10 7 31 October 2017 Directorate: Corporate Services E. DIRECTORATE REPORT 2. Report - Sol Plaatje - Injuries on Duty for the period September 2017 (W Wiese) 17 October 2017 Purpose To submit September 2017 report regarding injury on duty. Background In terms of the Occupational Health and Safety Act, Act 85 of 1993 and in terms of Section 24 of this Act, all injuries on duty defined by this Act must be reported to Department of Labour. Annexure Description Schedule of injuries sustained by employees for the period ANNEXURE September 2017 p. 11 Motivation That the committee take note of injuries on duty sustained in the workplace. Personnel Implications Man- hours lost. Financial Implications: Vote No. : RAMRCZZWM Amount Spend : R (Current, including roll over) Budgeted : R Legal Authority and Implications Legal Requirement. Consultation Department of Labour, Workman s Compensation Commissioner and relevant service providers. Contact Person Mr Wynand Wiese Manager: Risk Management x 6860 FOR INFORMATION

11 8 31 October 2017 Directorate: Corporate Services E. DIRECTORATE REPORT 3. Organisational Development Report: 20 September 16 October 2017 M van Zyl 17 October 2017 Purpose The purpose of this item is to provide information to the Committee on the work executed by the Organisational Development Section during the period 20 September 17 October Update on the Activities of this Unit 1. Training Progress for the period September Date Training Provider Learners 1-31 N4: Electrical External Fire Fighting Level 1 Internal 12 Elementary Fire Fighting Emergency Services 14 Elementary Fire Fighting Emergency Services CPMD Wits 2 Engineers on training SAICE LGSETA PDP SAICE First Aid level 3 Emergency Services 19 Civil Education Programme for SANDF Internal Basic Computer skills Internal Basic Computer skills Internal 26 Elementary Fire Fighting Emergency Services 28 Elementary Fire Fighting Emergency Services 28 Induction Internal 30/9 1/10 Diploma UFH contact session UFH (East London) 2 30/9 1/10 Certificate UFH contact session UFH CUT Project Management CUT FS 30 October Date Training Provider Learners 1-31 N4: Electrical External AET External Diploma UFH contact session UFH Certificate UFH contact session UFH Basic Computer skills Internal Leadership in MG Wits Prof Client Services Internal 6 16 Assessment of Pipe fitters External Drive (Code 10) External 1 24 CUT Project Management Exam CUT FS Diploma UFH UFH (East London) 2 2. Training Planned November - December Post Grad in management Regent Business School 1 6 CUT Project Management Exam CUT FS Nov Final revision Certificate UFH UFH (Kimberley) 6-14 Nov Exams Certificate UFH UFH (Kimberley) 7-8 Nov Basic Computer skills Internal

12 9 31 October 2017 Directorate: Corporate Services E. DIRECTORATE REPORT Nov Basic Computer skills Internal? Working in a Confined Space External? Confined Space Rescue External LED Learnership External Excel 2013 External Electrical Apprenticeship De Beers AET External ODETDP External 3 Drivers licenses External Learners licenses External Matric External SHE Rep External Nelson Mandela Legacy Programme Nelson Mandela Career Development Expo took place on September 2017 at the Military Base. 67 Bursaries were awarded to current matrics and 25 unemployed youth will be trained on apprenticeships for 12 months. 4. LGSETA Discretionary Grant Funding The LGSETA Discretionary funds were approved and will be accepted for 15/16 projects. Annexure A information has been submitted by Wednesday, 25 October. We are to meet the next deadline with the remaining 11 projects. 5. Fort Hare University Certificates and Diplomas for Councillors This training is proceeding. The Sol Plaatje Municipality has also been negotiating with the College to secure a venue for the University of Fort Hare (UFH) Programme to be rolled out in Kimberley. 6. SALGA / WITS Leadership in Municipal Governance Programme (LMG) The query to regarding the above programme lead to the application of 5 applications being submitted to SALGA and Wits. Two Councillors were accepted. Their training is progressing. 7. SALGA training for the past year Integrated Councillor Induction Programme (all Councillors in Upington) (SALGA) September 2016 (certificates are on their way) MFMA Training to all Councillors per Municipality (SALGA in partnership with Provincial Treasury) - 25 October 2016 till 09 February 2017 Municipal Infrastructure and Services Training Programmes Climate Change, Environment and Waste Management (SALGA and DEA) - Kimberley: March 2017 Water and Sanitation (SALGA and DWS) - Upington: 23 March 2017 Human Settlements (SALGA) - Kimberley: May 2017 Roads and Transport (SALGA) - Kimberley: 17 May 2017 Electricity and Energy (SALGA) - Kimberley: May Day Finance Training Workshop for Councillors on Finance Committees (SALGA) - 15 March 2017 MPAC Training for MPAC Councillors (District based) (SALGA Partnered with G&IGR Unit)

13 10 31 October 2017 Directorate: Corporate Services E. DIRECTORATE REPORT - ZFM District: 14 February Pixley & FB Districts: 21 February JTG District: 28 Feb 2017 Portfolio Based training - MPAC ICIP Training (SALGA Partnered with G&IGR Unit) - ZFM District: June Pixley District: June JTG District: July Namakwa District: Aug 2017 Portfolio Based Training- ICIP Training for Finance Portfolio Councillors (SALGA) - FB and Pixley Districts: Aug ZFM, JTG & Namakwa Districts: Aug 2017 MPAC Municipal Public Accounts (SALGA) - Kimberley: July CUT FS and the B Tech Project Management Bursaries The LED unit requested the training unit to collate name of persons wanting to train in the B Tech (Project Management) (NQF level 7) as from next year. 211 people submitted their names and their names were forwarded. 9. ISDG Programme The National Treasury has approved this new business plan and this means that 14 new interns will be advertised for. 10. Work integrated Learning (WIL) Sol Plaatje Municipality now has 199 interns currently doing their WIL in the various sections. This request remains high on the agenda. Work Integrated Learning spaces for learners are required for learners who are doing their 18 months for the TVET Colleges, PMI, CUT Practical (P1 and P2) and practical for apprenticeships. In two instances SLA s are drafted with SANDF and PMI. Nyiko, through the Office of the Premier, have 100 posts for work integrated learners but we have still to meet and discuss the areas. A request was circulated to all sections to understand what the capacity is for the organization to host these learners. The outcome of this study is not complete yet. War on Leaks (Presidential Project) Phase 1: Intake Water Agents WIL 1 June - 31 October Water Agents WIL 1 March August 2018 in progress 2 Fitters and Turners WIL 18 April August 2018 in progress 1 Welder WIL 18 April August 2018 in progress 1 Boiler maker WIL 1 April March 2018 in progress 1 Electrician WIL 1 May March 2018 in progress Possible: 2 Fitters and Turners WIL 1 Sept August 2019 (negotiations underway to contract.) Feedback is that they are doing an excellent job.

14 11 31 October 2017 Directorate: Corporate Services E. DIRECTORATE REPORT Phase 2: Intake learners have decreased to 255 of which 136 are water agents. They would like us to take 127 WA by 1 July and 151 Apprentices by 30 August2017 for 24 months. 101 Water Agents WIL 1 July June 2019 in progress Phase 3: Intake 2017 This will be finalised in the future when the other matters are resolved. Artisan Welder (SANDF) One welder is placed at the Workshop until the end of October 2017 to gain experiential learning. 1 Welder WIL 1 January October In progress. Tourism Learner One learner requires two months experiential learning. 1 Tourism learner WIL (not resolved yet). Disaster Management Learner (DRDLR) One learner requires 12 months experiential learning and has started 1 March The Contract has been signed. 1 Disaster Mgmt WIL 1 March October In progress. Feedback is that this intern is doing an excellent job. Infrastructure Skills Development Programme Fifteen unemployed youth were employed in 2013 on contracts of three years for them to be developed and given workplace experience and courses in order to professionalise in the Built environment. National Treasury noted that this is one of two projects (out of 18) that is being well run. They have asked Sol Plaatje to submit a revised plan to take in new learners for professionalization. The monthly, and quarterly report has been submitted and the presentation for the July 2017 meeting. We now have two remaining. One awaits and interview (20 July) with Engineering Council of South Africa (ECSA); Two will submit to ECSA by 31 August; One will submit by 31 December 2017 to SACNASP. Support has been requested from City of Cape Town with this learner. A new business plan was submitted for another 14 interns. Recruitment is yet to start. WIL with the Central University of Technology (Free State) The CETA is paying the stipends of 6 Electrical Engineering students to do their practical experiential learning. They should start from 1 April March Three Civil Engineering students are also to do their practical experiential learning with us. 3/5 Electrical students WIL 1 April March One passed away in August. 1 Electrical students WIL 29 May May 2018 Nyiko/ COGHSTA WIL with the IDT The Executive Director: Strategy has requested 2 Town and Regional Planner students to do their practical experiential learning at Sol Plaatje Municipality for 2 years. They should start from 1 September August These discussions are underway. WIL with SINAKHO The Acting Executive Director: Infrastructure and Services has requested 50 unemployed youth to be taken in to the Housing and Building sections for 1 year. They started from 1 October September They have settled in.

15 12 31 October 2017 Directorate: Corporate Services E. DIRECTORATE REPORT Discussions also with: Office of the Premier, Department of Water and Sanitation; Rand Water, Khula Nonke; and Ebony and Ivory PMI Independent Development Trust LGSETA National and Provincial National Treasury Department of COGHSTA. Motivation Report request for Executive Director. Personnel Implications None. Financial Implications None. As per Service Level Agreement between Sol Plaatje Municipality and National Treasury for the roll-out of the Unemployed Graduates Programme. Legal Authority and Implications The Skills Development Act, 1998 (Act no. 97 of 1998) and amendments. The Division of Revenue Act, 2013 (Act no. 2 of 2013). Consultation Executive Director: Corporate Services; Executive Director: Infrastructure and Services; Project Management Unit Manager; Executive Director: Finances; Skills Development Facilitator. Contact Person M van Zyl Manager: Organisational Development x6320 FOR INFORMATION

16 13 Directorate: Financial Services 31 October 2017 Office of the Municipal Manager F. SUPPLEMENTARY REPORT 1. Submission of costing of the additional (new) positions in the organisational structure as approved by Council (Ms. Z.L. Mahloko 27 October 2017 Purpose The purpose of this item is to submit the financial implications of additional positions (posts) as per the resolution of Council (C239/06/16). For noting / for decision by The following options exist in terms of noting / for decision by: Council (to approve) The item/report has been considered by a portfolio committee. This item is for decision by Council. Background The Government Gazette No dated 17 January 2014, Local Government, Regulations on appointment and conditions of employment of Senior Managers, in terms of Chapter 2 (two), regulates the staff establishment procedures. Clause 3 of the regulations relates to the responsibilities of Council in as far as human resource planning is concerned, with subsection 1 (one) referring to the number of Senior Managers and their competencies, whilst subsection 2 (two) refers to the responsibility of council to assess existing human resources in terms of race, gender and disabilities. Subsection 3 (three) requires Council to plan human resources within the available budgeted funds for the remaining period of the relevant Medium Term Revenue and Expenditure, being the term of office of council , and LTREF Clause 4 (four) of the regulations refers to the staff establishment and places the responsibility to the Municipal Manager in as far as compliance with the regulations, in as far as the review of the organisational structure as well as post local government elections so as to ensure an alignment between the municipal strategic objectives and municipal core and support functions (subsection 3). After the review of the organisational structure, the municipal manager is further tasked with the responsibility of determining permanent ad fixed posts and subsection 5 (five) further requires the municipal manager to have due regard of the financial implications of such posts to the municipality and the budgetary implications (include cost of providing services, tariffs, ratios, sustainability, affordability and productivity). The resolution of Council as referred to above complies with Clause 7 (b) and (e). It is for this reason that this item is submitted. Since the taking of the resolution, the TASK Evaluation Committee had a responsibility to evaluate all newly created positions to enable the Finance Directorate to determine the costs of the new positions and analyse the impact of the additional costs on budget and tariffs, in as far as affordability, costs of providing service and running the administration as well as productivity and performance of the organisation.

17 14 Directorate: Financial Services 31 October 2017 Office of the Municipal Manager F. SUPPLEMENTARY REPORT On the other hand, Sol Plaatje as a secondary city is benchmarked against other secondary cities and proportionately with Metropolitans, in terms of budget, tariffs, personnel size or spending on employee costs. The ratio that has been determined and used as a benchmark is 27% to 33% of operational costs of the municipality, which has a direct impact on tariffs since the municipality is fully funded from rates and tariff based service charges. The municipality strives to bring its employee related costs to 33% maximum at any given point, target which must be supported by Human Resources Recruitment and monitored and reported on by the Chief Financial Officer. For the municipality to be able to increase its proportion of budget on repairs and maintenance, remain liquid enough to settle its debt as they become due (creditors, including bulk services and staff costs), as well as make significant contributions to capital replacement reserve fund, as well as maintain a lowest of 2 months cost coverage against a preferred cost coverage of 3 months, controlling growth in personnel costs is highly required, and hence these regulations places this responsibility to the Municipal Manager and to Council as they have the prerogative to approve the budget. It is further indicated in this item that Council took a decision that all positions other than Senior Managers as per these regulations and as defined in the MFMA and Municipal Systems Act, shall be capped at T17, whilst Senior Manager and Municipal Manager appointed after 1 July 2014 shall be remunerated in terms of upper limits gazette for the duration of their contracts, and senior managers and municipal managers appointed prior to this period shall be remunerated in terms of the remuneration policy or scales which were in place prior to the date of 1 July 2014, being the TASK Grading System. It is therefore submitted, the financial and budgetary implications of the positions newly created in the organisational structure, as well as the total costs of the entire organogram are presented. It should be highlighted that the position of Legal Expert on Labour Relations and Commercial Contracts has become critical and funding is required urgently with regards to this position. To date, the municipality has spent R (2015/16: R ) on Legal Fees for 2016/17 financial year. This expenditure relates to consultancy, advisory, opinions and litigations. It is believed that with an expert appointed on a fixed term contract, these costs will reduce significantly and the only costs that will remain will be for representation during litigations. Annexures Council Resolution C239/06/16 Annexures of the Council Resolution C239/06/16 Financial Implications Report of the newly established positions as per the organogram ANNEXURE p Motivation It is therefore motivated that Council must take into consideration the budgetary implications of the new positions under the current economic environment, affordability issues as well as the staff establishment size as compared with similar sized municipalities. Performance Recognition strategies must be considered to motivate staff to perform and go an extra mile (beyond their job descriptions) rather than falling for pressures to increase in personnel numbers, higher salaries at very low productivity levels. Except for cases in legal

18 15 Directorate: Financial Services 31 October 2017 Office of the Municipal Manager F. SUPPLEMENTARY REPORT and engineering services, where there is clear skills shortage or workforce shortages, and where the municipality must respond to professionalization of local government initiatives. Personnel Implications The as-is organogram (prior to the new organogram approved by council) had 2190 posts, and the new organogram (newly adopted) has 2701 number of positions. Only 1561 posts in the organogram were funded and as such filled, whilst in the new organogram, 1561 positions are funded and as such filled. The value of funded vacancies as per 2017/18 budget year is approximately R6, 8 million (estimated). The vacancy rate on funded positions (new organogram) 42%. Financial Implications The financial implications of the newly created positions is approximately R70 million. This amount is for only 147 of 276 new posts created, see annexure attached. It is emphasised that Council must note the budgetary implications in this regard. Legal Authority and Implications Council Resolution C239/06/16 Municipal Systems Act as amended Regulations on Conditions of Service and appointment of Senior Managers Chapter 2, 3 and 4. Municipal Finance Management Act and its regulations MFMA Circular 72 (ratios) and 82 (cost containment) Consultation The Municipal manager, all Executive Directors and Senior Managers were consulted. Contact Person Ms Z.L. Mahloko x 6500 Ms K.R. Sebolecwe x 6717 Mr G. H. Akharwaray x6101 Executive Mayor Ald. O.M. Matika x 6269 Chief Financial Officer: Ms Z.L. Mahloko For technical enquiries Chief Financial Officer Z.L. Mahloko

19 16 Directorate: Financial Services 31 October 2017 Office of the Municipal Manager F. SUPPLEMENTARY REPORT The following recommendation was made to the Finance Committee meeting held 8 November 2017: 1. That Council notes the financial implications of the newly created positions in the organogram approved as per Council Resolution C239/06/ That Council notes that only an amount of R has been provided for in the budget which covers vacant funded posts from the obsolete organogram. 3. That as an acknowledgement of a growing city and an increased demand for services, the organogram is under review for the purposes of ensuring that critical positions that are geared at service delivery are identified and filled with the available funds (as per the latest organogram). 4. That impact on tariffs when filling positions must be borne in mind and that the Chief Financial Officer must be involved in the process of recruiting and filling positions. 5. That due to changes in local government influenced by legislation and economic conditions, and the implications of personnel costs on tariffs and cost of services, that a Remuneration Policy be developed, to look at allowances and benefits of staff. That the item be tabled to the Corporate Services meeting for noting within the committee. FOR INFORMATION

20 CORPORATE SERVICES & HUMAN RESOURCES ANNEXURES PLEASE RETAIN ALL ANNEXURES FOR MAYORAL COMMITTEE AND COUNCIL MEETINGS. COPIES WILL NOT BE RESUBMITTED

21 CORPORATE SERVICES & HUMAN RESOURCES DIRECTORATE REPORT ANNEXURES p. 1 11

22 CORPORATE SERVICES & HUMAN RESOURCES SUPPLEMENTARY REPORT ANNEXURES p. 1-74