Subcouncil 10

Resolution detail

Subcouncil 10 resolved to make for following recommendations:

1 The City, using section 13.2 of the Municipal Asset Transfer Regulations (MATR) has deemed the above property as not being required for the provision of basic municipal services and having entered into a Land Availability Agreement with the Khayelitsha Community Trust (KCT) in 2004, proposes to dispose of the site, not at its current market value which is R23.6 million but at 12% (R2.8 million) of its value.
The above discounted price will require KTC to list community projects that will benefit from the massive discount. Subcouncil 10 is of the opinion that this proposed agreement reached between the Department of Property Management and KCT reviews clause 4.4 of the Land Availability Agreement. Property Management have indicated that previously the City have tried to review the Land Availability Agreement (LAA) but that they were informed that this agreement is irrevocable. We are of the opinion that the agreement reached between Property Management and KCT regarding the Proposed Sale of City-owned land to KCT at less than Market Value opens up the opportunity for the whole agreement to be reviewed as we feel that, as it stands, the LAA is in favour of KCT and the City, as land owner, has no recourse if it is not happy with the progress made by KCT in developing City-owned land.

Projects to be supported by KTC as a binding quid pro quo should be in two distinctive categories: capital projects and operational projects.

2 The Deed of Trust of KTC, gives very clear guidance of the types of projects to be supported by it. The list in front of sub-council 10 is unfortunately not inclusive of the listed categories of items deserving funding and support.
In the legal opinion given by Willem Muller, (Senior Legal Adviser), KCT is obliged that in terms of clause 4.1 of the Deed of Trust that “through and with other parties (to) procure the building and equipping of community centres, sports facilities, crèches and other facilities of a similar nature for the benefit of the poor and need.” (p 6)
It is clear in the wording that the above is not an exhaustive list. Sub Council 10, therefore, wishes to see the following to be included without the inclusion being seen as the finite limit of what needs to be done:

Capital Projects
(a) Extension of Kuyasa Clinic
(b) Relocation and rebuilding of Mayenzeke Clinic
(c) Construction of Kuyasa Multi-Purpose Centre in Ward 99

Capital project of the above types will leave a lasting legacy and be of immeasurable benefit to the poor in the community.
Operational Projects

(a) An amount of R200 000 be made available annually for at least 10 years to provide bursaries for academically deserving students intending to study Medicine, Finance, Engineering, IT and Facilities Management. These bursaries are to be capped at R200 000 per annum for ten years;

(b) Provision of R200 000 per annum in support of grant-in-aid for very necessary upliftment projects in Khayelitsha. This is to be capped at R200 000 per annum for ten years;

3.Sub-Council 10 also wishes to make clear that KCT should seek to leverage additional top-up funding from City and other government departments to make its own provision of funds larger to undertake bigger projects that are desperately needed in the community.

4 On the operational side, Sub Council 10 would like a binding agreement with the KCT that the following are included:

5 Section 195 of the Constitution requires proper public participation before any decision is taken. As this was not done, the modus operandi for it to be done must now be finalised with the sub-council manager.

6 Due diligence of the financial capacity of KCT to implement this project, the skills set and the level of stability to be performed by the City of cape Town.

7 All of the projects that KCT undertakes must, of necessity, be in consultation with Sub-Council 10 and be subject to active and in depth monitoring by it to ensure their integrity and legitimacy.

MOVER: Cll M Cassim SECONDER: Cllr D Badela

ACTION: M Sitonga