Transcript The City of Cape Town’s Role in Creating a Better Life for All

The Role of Local Government in implementing
Biogas Projects
Barry Coetzee, Head: Integrated Waste Management, Strategy & Policy
Solid Waste Management Dept, City of Cape Town
Legal Context: Roles
& Responsibilities of a municipality
Constitution of SA, Schedule 4 & 5:
Municipal services include the provision of water, sanitation, waste
and electricity reticulation services.
Municipal Systems Act (Act 32 of 2000):
S.4 Rights & duties of municipal councils
strive to ensure that municipal services are provided to the local
community in a financially and environmentally sustainable
manner.
S.11 Executive & legislative authority
Develop & adopt policies, plans, strategies, targets.
Provide municipal services to local community or appoint service
providers per S.78.
Promote a safe and health environment.
Do anything within its legislative and executive competence.
Role of local government in
implementing biogas projects (1)
Ensure sustainability/ sustainable development:
Land use
Environment: prevent impact & damage, conserve
Create socio-economic benefits
Financial sustainability
Plan, set targets for spatial efficiency, effectiveness, sustainability in terms of
growth;
Provision of accessible, viable, sustainable, affordable municipal services:
Water, sanitation, waste, electrical reticulation (infrastructure & services)
Set affordable tariffs (& rates)
Assess alternative service delivery mechanisms:
Technology – alternatives, viability,
Funding
Internal/external operation, repairs, maintenance (skills, etc)
Impact on jobs/ job creation
Public and labour consultation
Role of local government in
implementing biogas projects (2)
Once Council has resolved that alternative is viable, feasible, sustainable:
Engineering & Concept design, Final design, Infrastructure & Equipment – bid
specifications, tender (Supply Chain Regs: procure goods & professional services
transparently)
Plans approval
EIA of proposed infrastructure development (Supply Chain Regs: procure
professional services transparently; EIA Regs: Public consultation)
Land – Council approval if Council-owned, rezoning application
Hazard Assessment (OHS Act MHI Regs)
DME application: Independent Power Producer application/ authorisation
Permit/ licence/authorisation to operate (Water Act, NEMA, Waste Act)
Funding:
Budget – tariff setting,
Possible loans & grants,
Private funding, e.g. PPP – Council approval/ National Treasury authorisation
CDM – cream on the cake, but not without risk or complexity:
Transaction advisor
Legal Context: Roles
& Responsibilities of a municipality
Municipal Systems Act (Act 32 of 2000):
S.73 General Duty – Municipal Services must
(a) be equitable and accessible:
(b) be provided in a manner that is conducive to (i) the prudent, economic, efficient and effective use of available
resources; and
(ii) the improvement of standards of quality over time;
(c) be financially sustainable [read “affordable”];
(d) be environmentally sustainable; and
(e) be regularly reviewed with a view to upgrading, extension and
improvement.
* should be read in conjunction with the provisions of the Municipal
Finance Management Act (MFMA)
The Context of Roles
& Responsibilities
Municipal Systems Act (Act 32 of 2000):
“financially sustainable”, in relation to the provision of a municipal
service, means the provision of a municipal service in a manner aimed
at ensuring that the financing of that service from internal and external
sources, including budgeted income, grants and subsidies for the
service, is sufficient to cover the costs of—
(a) the initial capital expenditure required for the service;
(b) operating the service; and
(c) maintaining, repairing and replacing the physical assets used in the
provision of’ the service.
The Context of Roles
& Responsibilities
Municipal Systems Act (Act 32 of 2000):
“environmentally sustainable”, in relation to the provision of a
municipal service, means the provision of a municipal service in a
manner aimed at ensuring that—
(a) the risk of harm to the environment and to human health and safety is
minimised to the extent reasonably possible under the circumstances;
(b) the potential benefits to the environment and to human health and
safety are maximised to the extent reasonably possible under the
circumstances; and
(c) legislation intended to protect the environment and human health and
safety is complied with.
Legal Context: Roles
& Responsibilities of a municipality
S.74 Tariff policy
(1) A municipal council must adopt and implement a tariff policy on the levying
of fees for municipal services provided by the municipality itself or by way of
service delivery agreements, and which complies with the provisions of this
Act and with any other applicable legislation.
(2) A tariff policy must reflect at least the following principles, namely that—
(d) tariffs must reflect the costs reasonably associated with rendering the service,
including capital, operating, maintenance, administration and replacement costs,
and interest charges;
(e) tariffs must be set at levels that facilitate the financial sustainability of the service,
taking into account subsidisation from sources other than the service concerned;
(f) provision may be made in appropriate circumstances for a surcharge on the tariff
for a service; …
(h) the economical, efficient and effective use of resources, the recycling of waste,
and other appropriate environmental objectives must be encouraged:
Legal Context: Roles
& Responsibilities of a municipality
S.77. Occasions when municipalities must review and decide on
mechanisms to provide municipal services
A municipality must review and decide on the appropriate mechanism to provide
a municipal service when—
(a) preparing or reviewing its integrated development plan;
(b) a new municipal service is to be provided;
(c) an existing municipal service is to be significantly upgraded, extended or
improved;
Legal Context: Roles
& Responsibilities of a municipality
Municipal Systems Act (Act 32 of 2000):
S. 78 Criteria and process for deciding on mechanisms to provide
municipal services
(1) When a municipality has in terms of section 77 to decide on a mechanism to
provide a municipal service in the municipality or a part of the municipality, or
to review any existing mechanism—
(a) it must first assess—
(i) the direct and indirect costs and benefits associated with the project if the service
is provided by the municipality through an internal mechanism, including the
expected effect on the environment and on human health, well-being and safety:
(ii) the municipality’s capacity and potential future capacity to furnish the skills,
expertise and resources necessary for the provision of the service through an
internal mechanism mentioned in section 76(a):
(b) it may take into account any developing trends in the sustainable provision
of municipal services generally.
Legal Context: Roles
& Responsibilities of a municipality
Municipal Systems Act (Act 32 of 2000):
S. 78 Criteria and process for deciding on mechanisms to provide
municipal services
(2) After having applied subsection (1), a municipality may—
(a) decide on an appropriate internal mechanism to provide the service;
or
(b) before it takes a decision on an appropriate mechanism, explore the
possibility of providing the service through an external mechanism
mentioned in section 76(b).
Legal Context: Roles
& Responsibilities of a municipality
Municipal Systems Act (Act 32 of 2000):
S. 78 Criteria and process for deciding on mechanisms to provide
municipal services
(3) If a municipality decides in terms of subsection (2)(b) to explore the
possibility of providing the service through an external mechanism it must—
(b) assess the different service delivery options in terms of section 76(b), taking
into account—
(i) the direct and indirect costs and benefits associated with the project, including the
expected effect of any service delivery mechanism on the environment and on
human health, well-being and safety;
(ii) the capacity and potential future capacity of prospective service providers to
furnish the skills, expertise and resources necessary for the provision of the
service;
(iii) the views of the local community;
(iv) the likely impact on development and employment patterns in the municipality;
and
(v) the views of organised labour.
Conclusions
Consideration of changing mechanisms – MSA S.78 assessment (all aspects of
funding, staffing, financial impacts and risk, economic implications, etc)
Financial risk will be considered in terms of affordability to Council and its rate
payers
Land use authorisation – MFMA: requires Council approval
Land use for biogas applications: will probably require zoning approval due to
nature of processes
Environmental Impact Assessment will be required
Public and labour consultation necessary
Funding decisions that involve a Public Private Partnership (PPP): Council
approval and careful legal consideration i.r.o..
Carbon credits, CDM process
IMPLEMENTATION IS VERY COMPLEX: NEEDS GOOD UNDERSTANDING OF
LEGISLATION, GOOD PLANNING & PROJECT MANAGEMENT ONCE A
COUNCIL HAS APPROVED THAT IT WILL UNDERTAKE MAJOR CHANGE
BASED ON GOOD ASSESSMENT OF RISK AND VIABILITY
THANK YOU, DANKIE, ENKOSI