PERFORMANCE AGREEMENT MADE AND ENTERED INTO BY AND BETWEEN: THE SWARTLAND MUNICIPALITY AS REPRESENTED BY THE EXECUTIVE MAYOR. Tijmen van Essen AND

Transcription

1 PERFORMANCE AGREEMENT MADE AND ENTERED INTO BY AND BETWEEN: THE SWARTLAND MUNICIPALITY AS REPRESENTED BY THE EXECUTIVE MAYOR Tijmen van Essen AND JJ Scholtz THE EMPLOYEE OF THE MUNICIPALITY FOR THE FINANCIAL YEAR: 1 JULY JUNE 2013

2 PERFORMANCE AGREEMENT ENTERED INTO BY AND BETWEEN: The Swartland Municipality herein represented by Tijmen van Essen in his capacity as Executive Mayor (hereinafter referred to as the Employer) and Joachim Jacobus Scholtz (ID ) (hereinafter referred to as the Employee). WHEREBY IT IS AGREED AS FOLLOWS: 1. INTRODUCTION 1.1 The Employer has entered into a contract of employment with the Employee in terms of section 57(1)(a) of the Local Government: Municipal Systems Act 32 of 2000 ( the Systems Act ). The Employer and the Employee are hereinafter referred to as the Parties. 1.2 Section 57(1)(b) of the Systems Act, read with the Contract of Employment concluded between the parties, requires the parties to conclude an annual performance agreement. 1.3 The parties wish to ensure that they are clear about the goals to be achieved, and secure the commitment of the Employee to a set of outcomes that will secure local government policy goals. 1.4 The parties wish to ensure that there is compliance with Sections 57(4A), 57(4B) and 57(5) of the Systems Act. 2. PURPOSE OF THIS AGREEMENT The purpose of this Agreement is to comply with the provisions of Section 57(1)(b), (4A), (4B) and (5) of the Systems Act as well as the employment contract entered into between the parties; 2.2 specify objectives and targets defined and agreed with the Employee and to communicate to the Employee the Employer s expectations of the Employee s performance and accountabilities in alignment with the Integrated Development Plan, Service Delivery and Budget Implementation Plan (SDBIP) and the Budget of the Employer; 2.3 specify accountabilities as set out in a performance plan, which forms an annexure to the performance agreement; 2.4 monitor and measure performance against set targeted outputs; 2.5 use the performance agreement as the basis for assessing whether the Employee has met the performance expectations applicable to his or her job; 2.6 in the event of outstanding performance, to appropriately reward the Employee; and 2.7 give effect to the Employer s commitment to a performance-orientated relationship with its Employee in attaining equitable and improved service delivery. 3 COMMENCEMENT AND DURATION 3.1 This Agreement will commence on the 1 July 2012 and will remain in force until 30 June 2013, after which a new Performance Agreement, Performance Plan and Personal Development Plan shall be concluded between the parties for the next financial year or any portion thereof. 3.2 The parties will review the provisions of this Agreement during June each year. The parties will conclude a new Performance Agreement and Performance Plan that replaces this 2

3 Agreement at least once a year by not later than the beginning of each successive financial year. 3.3 This Agreement will terminate on the termination of the Employee s contract of employment for any reason. 3.4 The content of this Agreement may be revised at any time during the above-mentioned period to determine the applicability of the matters agreed upon. 3.5 If at any time during the validity of this Agreement the work environment alters (whether as a result of government or council decisions or otherwise) to the extent that the contents of this Agreement are no longer appropriate, the contents shall immediately be revised. 4 PERFORMANCE OBJECTIVES 4.1 The Performance Plan (Annexure A) sets out the performance objectives and targets that must be met by the Employee; and the time frames within which those performance objectives and targets must be met. 4.2 The performance objectives and targets reflected in Annexure A are set by the Employer in consultation with the Employee and based on the Integrated Development Plan, Service Delivery and Budget Implementation Plan (SDBIP) and the Budget of the Employer, and shall include key objectives; key performance indicators; target dates and weightings The key objectives describe the main tasks that need to be done The key performance indicators provide the details of the evidence that must be provided to show that a key objective has been achieved The target dates describe the timeframe in which the work must be achieved The weightings show the relative importance of the key objectives to each other. 4.3 The Employee s performance will, in addition, be measured in terms of contributions to the goals and strategies set out in the Employer s Integrated Development Plan. 5 PERFORMANCE MANAGEMENT SYSTEM 5.1 The Employee agrees to participate in the performance management system that the Employer adopts or introduces for the Employer, management and municipal staff of the Employer. 5.2 The Employee accepts that the purpose of the performance management system will be to provide a comprehensive system with specific performance standards to assist the Employer, management and municipal staff to perform to the standards required. 5.3 The Employer will consult the Employee about the specific performance standards that will be included in the performance management system as applicable to the Employee. 5.4 The Employee undertakes to actively focus towards the promotion and implementation of the KPA s (including special projects relevant to the Employee s responsibilities) within the local government framework. 5.5 The criteria upon which the performance of the Employee shall be assessed shall consist of two components, both of which shall be contained in the Performance Agreement The Employee must be assessed against both components, with a weighting of 80:20 allocated to the Key Performance Areas (KPA s) and the Core Competency Requirements (CCR s) respectively Each area of assessment will be weighted and will contribute a specific part to the total score KPA s covering the main areas of work will account for 80% and CCR s will account for 20% of the final assessment. 5.6 The Employee s assessment will be based on his/her performance in terms of the outputs/outcomes (performance indicators and targets) identified as per attached 3

4 Performance Plan (Annexure A), which are linked to the KPA s, and will constitute 80% of the overall assessment result as per the following weightings agreed to between the Employer and Employee: Key Performance Areas (KPA s) Weight IDP Implementation 40% Good Governance and Public Participation and LED 15% Basic Service Delivery 15% Municipal Institutional Development and Transformation 15% Municipal Financial Viability and 15% Total 100% 5.7 The CCR s will make up the other 20% of the Employee s assessment score. The following CCR s were agreed to between the Employer and Employee: CORE COMPETENCY REQUIREMENTS (CCR s) Core Managerial and Occupational Competencies Weight Strategic capability and leadership 10% Financial management 10% Service delivery innovation 10% Problem solving and analysis 10% People management and empowerment 10% Client orientation and customer focus 10% Communication 10% Knowledge of developmental local government 10% Knowledge of Performance and Reporting 10% Interpretation of and implementation within the legislative and 10% national policy frameworks Total percentage 100% 6. EVALUATING PERFORMANCE 6.1 Paragraph 7 of this Agreement sets out the procedures for evaluating the Employee s performance; and the intervals for the evaluation of the Employee s performance. 6.2 Despite the establishment of agreed intervals for evaluation, the Employer may in addition review the Employee s performance at any stage while the contract of employment remains in force. 6.3 Personal growth and development needs identified during any performance review discussion must be documented in a Personal Development Plan as well as the actions agreed to and implementation must take place within set time frames. 6.4 The Employee s performance will be measured in terms of contributions to the goals and strategies set out in the Employer s IDP. 6.5 The annual performance appraisal will involve: Assessment of the achievement of results as outlined in the performance plan: (a) Each KPA should be assessed according to the extent to which the specified standards or performance indicators have been met and with due regard to ad hoc tasks that had to be performed under the KPA. (b) An indicative rating on the five-point scale should be provided for each KPA. (c) The applicable assessment rating calculator (refer to paragraph below) must then be used to add the scores and calculate a final KPA score. 4

5 6.5.2 Assessment of the CCRs (a) Each CCR should be assessed according to the extent to which the specified standards have been met. (b) An indicative rating on the five-point scale should be provided for each CCR. (c) This rating should be multiplied by the weighting given to each CCR during the contracting process, to provide a score. (d) The applicable assessment rating calculator (refer to paragraph 6.5.3) must then be used to add the scores and calculate a final CCR score Overall rating An overall rating is calculated by using the applicable assessment-rating calculator. Such overall rating represents the outcome of the performance appraisal. 6.6 The assessment of the performance of the Employee will be based on the following rating scale for KPA s and CCRs: Rating Terminology 5 4 Outstanding performance Performance significantly above expectations 3 Fully effective 2 Not fully effective 1 Unacceptable performance Description Performance far exceeds the standard expected of an employee at this level. The appraisal indicates that the Employee has achieved above fully effective results against all performance criteria and indicators as specified in the Performance Plan and maintained this in all areas of responsibility throughout the year. Performance is significantly higher than the standard expected in the job. The appraisal indicates that the Employee has achieved above fully effective results against more than half of the performance criteria and indicators and fully achieved all others throughout the year. Performance fully meets the standards expected in all areas of the job. The appraisal indicates that the Employee has fully achieved effective results against all significant performance criteria and indicators as specified in the Performance Plan. Performance is below the standard required for the job in key areas. Performance meets some of the standards expected for the job. The appraisal indicates that the Employee has achieved below fully effective results against more than half the key performance criteria and indicators as specified in the Performance Plan. Performance does not meet the standard expected for the job. The appraisal indicates that the Employee has achieved below fully effective results against almost all of the performance criteria and indicators as specified in the Performance Plan. The Employee has failed to demonstrate the commitment or ability to bring performance up to the level expected in the job despite management efforts to encourage improvement. 6.7 For purposes of evaluating the annual performance, an evaluation panel constituted of the following persons must be established Executive Mayor; Chairperson of the audit committee; Member of the mayoral committee; Executive Mayor and/or municipal manager from another municipality; and Member of a ward committee as nominated by the Executive Mayor. 6.8 The Employer s manager responsible for human resources must provide secretariat services to the evaluation panels referred to in sub-regulations (d) and (e). 5

6 7. SCHEDULE FOR PERFORMANCE MONITORING, REVIEW AND ASSESSMENT 7.1 The performance of each Employee in relation to his/her Performance Plan shall be monitored on a monthly basis; reviewed on a quarterly basis on the following dates: First quarter (July-September 2012): October 2012 Second quarter (October-December 2012): January 2013 Third quarter (January-March 2013): April 2013 Fourth quarter (April-June 2013): July formally assessed on an annual basis in August The Employer shall keep a record of the mid-year review and annual assessment meetings. 7.3 Performance feedback shall be based on the Employer s assessment of the Employee s performance. 7.4 The Employer will be entitled to review and make reasonable changes to the provisions of Annexure A from time to time for operational reasons. The Employee will be fully consulted before any such change is made. 7.5 The Employer may amend the provisions of Annexure A whenever the performance management system is adopted, implemented and/or amended as the case may be. In that case the Employee will be fully consulted before any such change is made. 8. OBLIGATIONS OF THE EMPLOYER 8.1 The Employer shall create an enabling environment to facilitate effective performance by the Employee; provide access to skills development and capacity building opportunities; work collaboratively with the Employee to solve problems and generate solutions to common problems that may impact on the performance of the Employee; on the request of the Employee delegate such powers reasonably required by the Employee to enable him/her to meet the performance objectives and targets established in terms of this Agreement; and make available to the Employee such resources as the Employee may reasonably require from time to time to assist him/her to meet the performance objectives and targets established in terms of this Agreement. 9. CONSULTATION 9.1 The Employer agrees to consult the Employee timely where the exercising of the powers will have amongst others a direct effect on the performance of any of the Employee s functions; commit the Employee to implement or to give effect to a decision made by the Employer; and a substantial financial effect on the Employer. 9.2 The Employer agrees to inform the Employee of the outcome of any decisions taken pursuant to the exercise of powers contemplated in 10.1 as soon as is practicable to enable the Employee to take any necessary action without delay. 6

7 10 MANAGEMENT OF ASSESSMENT OUTCOMES 10.1 The annual assessment of the Employee s performance will form the basis for rewarding outstanding performance or correcting unacceptable performance The Employee will not be eligible for a performance bonus or any other monetary incentive The Employer may make provision for non-monetary incentives in recognition of outstanding performance In the case of unacceptable performance, the Employer shall provide systematic remedial or developmental support to assist the Employee to improve his or her performance; and after appropriate performance counselling and having provided the necessary guidance and/ or support as well as reasonable time for improvement in performance, the Employer may consider steps to terminate the contract of employment of the Employee on grounds of unfitness or incapacity to carry out his or her duties. 11. DISPUTE RESOLUTION 11.1 Any disputes about the nature of the Employee s performance agreement, whether it relates to key responsibilities, priorities, methods of assessment and/ or any other matter provided for, shall be mediated by the MEC for local government in the province or any other person designated by the MEC within thirty (30) days of receipt of a formal dispute from the Employee. The decision of the MEC or person designated by the MEC shall be final and binding on both parties In the event that the mediation process contemplated above fails, the dispute resolution stipulations in the Contract of Employment shall apply. 12. GENERAL 12.1 The contents of this agreement must be made available to the public by the Employer in accordance with the Municipal Finance Act, 2003 and Section 46 of the Systems Act Nothing in this agreement diminishes the obligations, duties or accountabilities of the Employee in terms of his/her contract of employment, or the effects of existing or new regulations, circulars, policies, directives or other instruments The performance assessment results of Employee must be submitted to the MEC responsible for local government in the province as well as the national minister responsible for local government, within fourteen (14) days after the conclusion of the assessment. Thus done and signed at.. on this the.. day of AS WITNESSES: 1. EMPLOYEE 2. AS WITNESSES: 1. EXECUTIVE MAYOR 2. 7

8 PERFORMANCE PLAN (ANNEXURE A) 1. KPIs and targets from the IDP STRATEGIC OUTCOME 1: A FINANCIALLY SUSTAINABLE MUNICIPALITY WITH WELL MAINTAINED ASSETS Actions Processes Responsible KPI s / Standards Targets Output 1.1: Secured and increased sources of income Review all tariffs Investigate and address the cost reflectiveness of tariffs for the water-, sewerage- and solid waste removal services Maintain and improve on debt collection Secure new sources of income Investigate the desirability of cost reflective depreciation charges and determine an appropriate strategy Determine cost reflective tariff structures for all sundry services performed by the municipality, e.g. connections fees, building plan approvals, law enforcement, agency functions, etc. Investigate further processes to increase the debt collection rate Train all debt collection officials as law enforcement officers Install water demand management water meters (Eskom distribution areas) Continue to vigorously pursue debt collection as prescribed in the Debt Collection Policy. Strictly adhere to and apply the Municipality s write-off policies in instances where bad debts occur Investigate new sources of revenue such as the possibility of installing parking meters or appointing parking marshals on a shared revenue basis. Dir Fin Investigation and report on cost and Dir Civil Eng reflectiveness of tariffs completed 8 By Oct 2012 Dir Fin Tariffs adjusted appropriately By Nov 2012 Dir Fin Investigation and report on desirability of cost reflective depreciation charges completed and appropriate strategy determined team Dir Fin and Head Credit Control Head Credit Control and Manager HR Dir Civil Eng and Dir Fin Dir Fin and Head Credit Control Dir Fin and Dir Protection Cost reflective tariff structures for all sundry services determined and report completed Investigation and report on processes to increase the debt collection rate completed By Oct 2012 By Oct 2012 By July 2012 Training completed By Sep 2012 Water meters installed By Oct 2012 Report quarterly on debt collection Report quarterly on bad debts Investigation and report on new sources of revenue completed Quarterly Quarterly By Nov 2012

9 1.1.4 Counter the potential loss in electricity income Ensure an accurate and well maintained income database Secure more external funding and government grants for soft services including long term funding for operating expenses Facilitate new income generating developments Output 1.2: Affordable and well managed budget Monitor the financial health of the Municipality against financial standards Assist new businesses to establish in the area Do long term planning with respect to electricity income Investigate ways to ensure the losses are limited to the absolute minimum Continue the process of data cleansing and to reconcile properties on the financial system (Promun) to that of the Deeds Office, Surveyor-General s Office as well as the Valuation Roll. Investigate the reasons for the below average grant revenue Pursue opportunities for receiving grant funding vigorously Measure and report on financial performance against ratio s and standards on a quarterly basis MayCo, team and Strat Manager MayCo and team SC Manager and Dir Corp Dir Electrical Eng Dir Fin and Dir Dev Report annually on new income generating developments realised during term of Strategic Plan Report on engagements with stakeholders such as the Industrial Development Corporation to assist in bringing growth to the area Report on area of land provided for development opportunities Determine interest in industrial land in Moorreesburg and report % of larger projects that could be provided with sufficient infrastructure % of municipal goods and services procured from local businesses Report on long term planning with respect to electricity income completed Report on minimising of electricity losses completed Report quarterly on process of data cleansing Dir Fin Report on below average grant revenue completed Strat Manager and Dir Fin Report annually on opportunities for receiving grant funding Dir Fin Purchase of PPE as % of cash generated by operations Employee related costs (excluding police services) as % of total operating expense excluding depreciation & bulk purchases Annually by May By May 2013 By March 2013 By March % Determine target and Measure with effect from 1 July 2012 By Oct 2012 By Sep 2012 Quarterly By Oct 2012 Annually Average = 25% Average = 45.6% 9

10 Output 1.3: Curtailing expenditure Privatise or appoint contract workers for functions not requiring staff on a full time basis Enforce proper project planning that includes future operating costs Prioritise budget to prevent unfair competition between different municipal services for resources Every director must determine where in his or her department this can possibly be done and, if so, how it will be done. Human Resources must determine what is possible within the collective framework. Do proper project planning for each capital budget request Determine the effect (including future operating costs) of each capital budget request Remove any capital budget request of which the future operating expenses would be unaffordable for the Municipality Repairs and maintenance as % of total operating expense excluding depreciation and bulk purchases Interest paid as % of total operating expense excluding depreciation and bulk purchases Interest and redemption as percentage of revenue 8.0% by Jul 2013 Maintain 3.16% Average = 3.61% Cost of cash vs borrowings ratio Average = -2.75% Loan debt servicing cost Average = -2.43% All directors Report submitted to Team 1 st draft: Oct 2012 Final: Nov 2012 HR Manager Directors and division heads Directors and division heads Prioritise municipal services according to priority risk (also consider income generating Team potential of projects) Report in collaboration with directors submitted to Team Breakdown provided: Start and completion date unbundling of project Nov 2012 End of June 2012 Effect determined End of June 2012 Dir Fin Monitor when compiling new annual budget Annually Prioritisation completed End of Oct

11 Output 1.4: Well managed and maintained assets Maintain and utilise assets effectively and efficiently Implement an asset register that complies with Generally Recognised Accounting Practice (GRAP) standards In an effort to establish an asset management programme - compile a maintenance plan linked to the asset register, calculate escalated replacement cost of assets, and establish operating costs of assets and compare to standard Dir Fin Team Go live with the asset register 1 Jul 2012 Asset management programme established End of June 2013 STRATEGIC OUTCOME 2: SATISFIED, INVOLVED AND WELL INFORMED CLIENTS Actions Processes Responsible KPI s / Standards Targets Output 2.1: Prompt, courteous and responsive service that is sensitive to the needs/concerns of the public and respectful of individual rights Maintain and measure standards in the client services charter Obtain suggestions to improve service delivery Review the client services charter to evaluate and improve standards Make available a box (electronic and manual) for suggestions, compliments, complaints and questions Investigate further appropriate electronic media to obtain suggestions Encourage reaction of public regarding municipal services Manager Public Relations Manager Public Relations Review completed By end of 2013 Manual boxes made available at all municipal offices and libraries Implement box for suggestions on website By June 2012 By June 2012 Manager ICT Investigation completed By June 2013 Dir Corp Output 2.2: External and internal clients that are well informed on municipal matters Formulate and implement a communication strategy and plan Compile the strategy and plan Annual assessment of communication plan s objectives and targets Revise communication strategy and plan if necessary after assessment Dir Corp Manager Public Relations Manager Public Relations Article in quarterly newsletter and local media Bi-annually Strategy and plan compiled By June 2013 Assessment done Revision completed Annually by June after June 2013 If necessary 11

12 Output 2.3: Citizens that are actively participating in municipal decision-making Involve external and internal clients in the compilation of municipal strategies, policies and programmes Ensure actively functioning and adequately represented ward committees Councillors to give regular feedback to their electorates about council matters Maintain centralised database of all stakeholders and stakeholder forums Involve stakeholders and stakeholder forums in policy making, projects and programmes Communicate Area Plans after approval Distribution of ward information pamphlets Monitor through councillor performance management Strat Manager Manager Public Relations All directors Strat Manager Manager Secr & Records Manager Secr & Records Mayor and Speaker Updated corporate stakeholder database Proof of stakeholder involvement (attendance register of meetings, advertisement, notices, etc) Communication done as planned Pamphlets distributed Quarterly performance report Annually by June Quarterly at the end of Feb, May, Aug and Nov Annually after May Annually Quarterly STRATEGIC OUTCOME 3: AN EFFECTIVE, EFFICIENT, MOTIVATED AND APPROPRIATELY SKILLED WORK FORCE Actions Processes Responsible KPI s / Standards Targets Output 3.1: A motivated, productive work force pursuing Swartland Municipality s vision, mission, philosophy and values Improve staff interaction and motivation Compile and implement programme for staff interaction and motivational sessions Monitor the level of motivation of the workforce Recognition of achievements Develop and implement policy and standards for the recognition of achievement Manager HR Manager Public Relations (Task Team) Manager HR Manager HR Strat Manager (Task Team) Output 3.2: A well trained and appropriately skilled work force, striving towards service excellence Improve skills levels in the organisation Review induction programme on a regular basis Hold training sessions / special equipment programmes according to workplace skills plan 12 Programme compiled and implemented Annually Perception / satisfaction survey completed Annually Policy implemented July 2013 Manager HR Review completed Annually Manager HR Training provided according to workplace skills plan Annually Provide assistance through bursaries Manager HR Bursary approval process completed Annually

13 3.2.2 Succession planning and career pathing Compile TASK job evaluation policy to ensure regular review of job descriptions Compile succession / mentorship plan in respect of critical posts Compile a career path for every staff member Output 3.3: Safe and healthy working environment Establish a culture of workplace health and safety Ensure safety on municipal construction sites Workplace safety awareness campaigns in all departments Implement start card (safety checklist) system in all departments as determined by Manager Occupational Health and Safety Monitoring safety on municipal construction sites by the appointed safety agent Enforcement of Construction Regulations regarding safety specifications Manager HR Policy completed By June 2013 Manager HR Succession / mentorship plan approved By June 2013 Manager HR Finalise for levels T12 and higher By June 2013 Manager OHS Awareness campaigns conducted Commence July 2012 and Bi-annually thereafter All Departments System implemented By Sep 2012 Manager OHS System implementation monitored Quarterly Manager OHS Manager OHS STRATEGIC OUTCOME 4: ACCESS TO AFFORDABLE AND RELIABLE MUNICIPAL INFRASTRUCTURE Regular reporting by agent to Manager Monthly Occupational Health and Safety Monitor and rectify reportable incidences in Continuously terms of safety legislation Actions Processes Responsible KPI s / Standards Targets Output 4.1: Access for all clients to basic municipal infrastructure Ensure that all proclaimed erven have access to all municipal services Ensure access to municipal services Output 4.2: Sufficient capacity in respect of infrastructure Water, electricity and sewerage: Ensure that there is always sufficient infrastructure capacity to accommodate demand Ensure up to date master planning with respect to the three services Dir Civil and Electrical Eng Dir Civil and Electrical Eng Continuously monitor infrastructure capacity Dir Civil and Electrical Eng If not sufficient, plan and budget to rectify capacity in line with relevant master plan(s) team Dir Civil and Electrical Eng % proclaimed erven with access to all municipal services Master plans for all three services up to date? Average capacity as measured by individual indicators in PMS = 100% with respect to current users % of new applications for development on existing erven that can be accommodated Project identified and cost estimated submitted for budget purposes Maintain 100% Annually or as required Maintain 100% 100% 100% 13

14 Output 4.3: Affordable municipal infrastructure Ensure that the tariffs for each trading service covers the costs of that service with limited surplus and minimum cross subsidising Minimise distribution losses and departmental operating costs Refuse removal: Consider restructuring the service in the interest of affordable tariffs Facilitate developments to ensure that they realise and to address possible causes for delay Do proper integrated planning to ensure that planning and the provision of services are well coordinated and that there is always sufficient capacity Do a detail analysis of tariffs for each service vs the costs of that service Head Planning % of approved developments implemented 100% team and Strat Manager Does the capital budget reflect a higher priority for the upgrading of infrastructure for core service delivery? Dir Fin Analysis completed % of cost covered by income 100% Yes (annually) Annually by Feb Limit net profit on service to 10% Dir Fin % net profit per service Below 10% Minimise energy losses Minimise water losses Install new bulk water meters Garden refuses and household refuse separated at source Dir Electrical Eng Dir Civil Eng Dir Civil Eng Manager Cleansing Output 4.4: Reliable, safe and well operated and maintained municipal infrastructure Water, electricity and sewerage: Ensure that the annual budget makes adequate provision for maintenance, renewal, upgrading and refurbishment of existing obsolete networks and equipment Roads and storm water: Speed up routine maintenance to temporarily stop the deterioration of roads and storm water Secure a realistic amount on the annual budget for this purpose Note: All legislative and licence conditions re maintenance and refurbishment to be complied with, i.e. Nersa licence condition to allocate 5% of revenue annually. Secure an increased amount on the operating budget for routine maintenance of roads and storm water team and Council team and Council team and Council % total energy losses (technical + non technical) Maintain below 9% % total water losses 2012/13: Maintain below 16% Meters installed and operational By April 2013 Investigation completed By end of Oct 2012 Compliance with Nersa licence condition with respect to 5% of revenue for upgrading and refurbishment annually Amount allocated for water and sewerage in terms of depreciated value of assets must be made available for upgrading and refurbishment. Amount allocated for roads and storm water in terms of depreciated value of assets must be made available for upgrading and refurbishment. Maintain 100% 100% by % by 2016 OR Acceptance of deteriorated roads and storm water and inevitable loss of asset 14

15 4.4.3 Gravel roads: Maintain existing policy i.e. existing gravel roads will not be tarred Sport and recreation: Limit the resources allocated to sport and recreation based on the Municipality s financial ability Divide the responsibility in respect of maintenance of facilities between the Municipality and sport clubs Maintain current condition of gravel roads and storm water Determine existing resources allocated to sport and recreation; Determine the maximum that the Municipality can allocate based on its financial ability Develop a policy on the maintenance of sports facilities and submit to Council for approval Municipal Buildings and Secure a realistic amount on the annual facilities: To be maintained to budget for this purpose. minimum level to prevent deterioration. team and Council team and Council Adequate operational funding provided for maintenance from 2013/14 Amount allocated for sport and recreation in terms of depreciated value of assets must be made available for upgrading and refurbishment Sport Official Policy approved 2012 team and Council R p.a. by % of the maximum amount determined Policy implemented From 2013 Amount allocated for buildings and facilities in terms of depreciated value of assets must be made available for upgrading and refurbishment 100% by 2016 STRATEGIC OUTCOME 5: SUSTAINABLE DEVELOPMENT OF THE MUNICIPAL AREA (WITH SPECIAL EMPHASIS ON PREVIOUSLY NEGLECTED AREAS) Actions Processes Responsible KPI s / Standards Targets Output 5.1: Social development that improves people s quality of life Implementation of the Social Development Strategy Finalise Social Development Strategy and submit to council for final approval Establishment of an interdepartmental Social Development Co-ordination Committee Give effect to the focus areas in the Social Development Strategy Manager Social Development Dir Dev and Manager Social Dev All departments according to assigned responsibilities Document approved By Oct 2012 Committee established By Oct 2012 Scheduled quarterly meetings held Report on activities under the following focus areas: Child facilities and child development Youth development Social development co-ordination Local economic development Lobbying for the vulnerable Quarterly from Jan 2013 Quarterly 15

16 5.1.2 Establish a meaningful and sustained working arrangement or partnership between the Municipality and the NGO sector to address social challenges Formalise a working arrangement/partnership that addresses the following: Availability of facilities and vacant land for social development organisations Support for social development initiatives and programmes Facilitation of access to funding for social development organisations to implement social upliftment projects Sharing of and access to information Coordination of services Establishment and support of networking platforms for NGO s and CBO s Output 5.2: Sound management of the urban and rural environment Implementation of the Spatial Development Framework Note: SDF forms an integral part of the organisational strategy and of which the implementation is continuously monitored Finalise Spatial Development Framework and submit to council for final approval Communication and awareness throughout the Municipality Establishment of an interdepartmental SDF Co-ordination Committee Implementation of action plans Review annually with the revision of the IDP if necessary Focussed marketing of Swartland to optimise the potential of existing infrastructure Protect environmental quality Climate change awareness / strategy / initiatives for Swartland Manager Social Development Strat Manager Manager Planning Manager Planning Dir Dev and Manager Planning 16 Working arrangement/ partnership formalised and documented By July 2013 Document approved End of June 2012 Awareness campaign completed By end of Aug 2012 Committee established By end of Aug 2012 Scheduled quarterly meetings held All departments Report on implementation according to agreed programme, timeframes and budgets Manager Planning Municipal Manager Strat Manager Manager Planning SDF reviewed if necessary Meeting with all private developers to discuss marketing of Swartland Implement most efficient marketing strategy Quarterly Quarterly from Oct 2012 End of May annually if necessary July 2012 After July 2012 Engagement with DEADP During Aug 2012 Formulate strategy/initiatives & implement By June 2013 Ensure co-operation / involvement of other role-players Monitor environmental health Manager OHS Approval by Council of Air Quality Plan Report on water, noise and air pollution Continuously Jul 2012 Monthly

17 5.2.3 Land use and building control management Implementation of the integrated human settlement plan Output 5.3: Economic growth that benefits all Formulate LED strategy and action plan monitoring Effectively manage scarce natural resources All departments Evaluate projects for alternative renewable energy use and report Enforce relevant municipal legislation All departments Create effective mechanisms for law enforcement Apply conditions of land use approval during implementation of projects Finalise integrated human settlement plan and submit to council for final approval Compile budget programme for Council contributions Implementation of projects and actions Complete LED strategy and action plan and submit to Council for approval Relevant departments Manager Planning Manager Housing Dir Dev and Manager Housing Relevant departments Report on monitoring of the application of conditions Report on deviations from conditions Quarterly from July 2012 By July 2013 Continuously Quarterly Document approved July 2012 Housing pipeline revised STRATEGIC OUTCOME 6: A LEAN, INTEGRATED, STABLE AND CORRUPTION FREE ORGANISATION Annually by March Budget programme completed By Oct 2012 Report on implementation according to agreed programme, timeframes & budgets Monthly from Jul 2012 Manager Social Draft document approved End of Nov 2012 Dev & Managmnt Team Actions Processes Responsible KPI s / Standards Targets Output 6.1: Improved organisational focus and performance Monitor the implementation of the Municipality s strategic plan (IDP) Evaluate organisational readiness in light of approved IDP and strategy and re-align if necessary Regular strategy meetings with top management MayCo and team Obtain comments of top management and unions By Dec 2012 Strat Manager Meetings with top management held Quarterly Monitor success with actions and processes Strat Manager Problems addressed and adjustments made Quarterly if necessary Roadshow in all departments with all staff on MM and Strat Roadshow held Commencing vision, mission, strategy and goals Manager June/July 2012 Annually revise the strategic plan (IDP) as per legislative requirements Strat Manager Strategic plan (IDP) revised Annually by May 17

18 Output 6.2: Improved organisational control environment Full implementation of risk management Output 6.3: Sound work ethics Maintain a zero tolerance to fraud and corruption Conduct business in a fair and transparent fashion by focusing on professionalism and integrity Revisit Risk Framework Int Audit Framework finalised By July 2012 Identify risks affecting the organisation Int Audit and team Updated risk assessment (strategic and operational ) By Aug 2012 Regular monitoring and evaluation of risk assessments Compile RBAP according to updated risk assessments Effectively attend to reported and identified fraud and corruption cases Investigate the use of external person such as a retired magistrate to chair disciplinary hearings Investigate the use of the shared services concept to chair disciplinary hearings Fraud and Corruption awareness under staff and the public Make staff and public aware of whistle blowing procedure and contact number Emphasise and explain existing Value System to address ethics in the workplace Popularise existing Value System Educate staff on professionalism and integrity Int Audit and team Updating of measurements according to controls implemented Bi-annually for 2012/13 and 2013/14 Int Audit RBAP updated Annually Int Audit Monthly reporting to MM Monthly Quarterly reporting to Audit Committee Quarterly Dir Corp Complete investigation that includes reevaluation Dec 2012 of the national collective agreement Dir Corp Int Audit Int Auditor and Dir Corp Int Audit and team team team Output 6.4: An effective, efficient and well disciplined institution with sustainable capacity Maintain a high level of discipline Improve community confidence and trust in the municipality Apply disciplinary code Maintain an effective independent Audit Committee function as per legislation Manage the Municipality in an economically, effective and efficient way Participate in evaluation process and await the outcome of Ignite report and take a decision regarding participation Awareness campaign by external service provider for all departments up to supervisor level Include in above-mentioned awareness campaign Nov 2012 Commence Aug 2012 As above Execute programme From Sep 2012 Execute programme From Sep 2012 Agree on and execute programme From Feb 2013 All departments Continuous application of code and reporting of hearing outcomes Mayor, MM and Annual evaluation of Audit Committee by Internal Audit Mayor and MM A clean audit obtained team Quarterly Annually Annually 18

19 6.4.3 Improve political / administrative alignment and focus Reduce the cost of office space Revisit Section 53 Role clarification Mayor and MM Role clarification updated Jan 2013 Investigate cost effectiveness of own offices versus lease offices and the relocation of municipal stores Output 6.5: Relevant and efficient IT service and infrastructure Implementation of the IT Governance Framework Implement an ICT Strategic Plan Finalise IT Governance Framework and submit to council for final approval Communication and awareness throughout the Municipality Maintain an effective ICT Steering Committee Implement and monitor Dir Civil and Electrical Eng 19 Investigation completed Mar 2013 ICT Manager Document approved End of June 2012 ICT Manager Awareness meeting held July 2012 ICT Manager Scheduled quarterly meetings held Quarterly ICT Steering Committee Report on implementation and monitoring Quarterly from Oct 2012 Review annually if necessary ICT Manager Document reviewed if necessary End of May annually if necessary Compile ICT Strategic Plan in line with IDP ICT Steering Document approved End of June 2012 strategy Committee Implement and monitor ICT Manager Report on implementation and monitoring Quarterly from Oct 2012 Participate in annual strategic discussions ICT Manager Annual participation Annually from Oct between Strategic Manager and Departments 2012 Review annually together with IDP ICT Manager Document reviewed Annually by end of May STRATEGIC OUTCOME 7: INCREASED COMMUNITY SAFETY THROUGH TRAFFIC POLICING, BY-LAW ENFORCEMENT AND DISASTER MANAGEMENT Actions Processes Responsible KPI s / Standards Targets Output 7.1: Increase in law compliance Establish a more efficient and focused structure Effectively address the underfunded mandates regarding driver and vehicle licensing Chief Municipal Police Cost analysis by PGWC Completed 2011 Enter into a SLA with PGWC Before 1 April 2012 Implementation From 1 April 2012 Popularise Fraud and Corruption Policy under all staff Dir Protection Before end of Dec 2012

20 7.1.2 Step up the enforcement of municipal by-laws and traffic legislation Make staff and public aware of whistle blowing procedure and contact number Bi-annual interaction with public prosecutors in respect of withdrawal of traffic fines and court sentences Establish specialised unit for law enforcement (linked to outcome of restructuring) Regular interaction with SAPS Int Auditor and Dir Corp Chief Municipal Police Dir Protection Chief Municipal Police 20 Bi-annual interaction held Before end of Dec 2012 Bi-annually by Dec and June Unit established 1 July 2013 Meetings on local level Meetings on Provincial level Meetings on National level Weekly Monthly Quarterly Investigate partnerships to monitor illegal Dir Protection Investigation completed End of Oct 2012 structures Review current by-laws applicable to traffic policing and law enforcement and update where necessary Chief Municipal Police and Dir Corp By-laws reviewed Before end of June Implement awareness campaigns with regards to Law enforcement / traffic awareness campaigns - Chief Municipal Police law enforcement services with schools, businesses and NGO s Monthly with media Weekly through specialised visible operations Monthly Output 7.2: Strengthening of fire fighting service Adopt a fire-fighting by-law Adjust Standard Fire-fighting By-law according to local conditions and adopt Dir Protection Annual review of by-law Chief Fire Fire fighting / disaster awareness campaigns Chief Fire Implement awareness campaigns with regards to fire fighting and disaster management services By-law adopted by Council End of Dec 2012 By-law reviewed Annually after adoption of by-law with schools, businesses, old age homes Monthly with media Quarterly Output 7.3: Establishment and maintenance of a Disaster Structure within the Municipality Establish a disaster management structure and Compile Disaster Plan Chief Fire align with District Municipality Annually review Disaster Plan and Provincial Plans Chief Fire Review completed Communication of Disaster Plan Chief Fire Scheduled meetings held with role-players Disaster readiness drill Chief Fire Drill conducted Plan completed End of 1 st Qtr 2012 Annually after completion of plan Quarterly after completion of plan Annually after completion of plan

21 2. Other KPIs and targets Performance Objectives KPI s Targets Promote local economic development through liaison with business roleplayers Annual event with local business held before end of June? Yes Revision of organigram to accommodate LED in a directorate Tabling of the placement of LED within a directorate at LLF after liaison Sep 2012 with the management team Promote and facilitate the creation of jobs % of the LED funds actually spent 90% Ensure sound management Monthly management meetings held? Yes Promote proper procurement through sound management Number of appeals against the municipality regarding the awarding of 0 maximum tenders that were upheld Promote implementation by ensuring that the performance of the Monthly performance and financial assessments done? Yes municipality is monitored Promote good governance through the publication of an annual report Annual Report as required by MFMA (121) tabled before end of January Yes and approved before end of March? Promote the council's objectives by ensuring tasks are implemented % of due council decisions initiated 100% Ensure that participative planning takes place Monthly checking of IDP/Budget process schedule? Yes Ensure the organisation functions optimally by maintaining a functional macro-structure Annual review of the macro structure completed? Yes Ensure good cooperation between the political and administrative Performance management system for councillors evaluated and revised? Yes components of the municipality Improve decision-making through the formalisation of delegations System of delegations revised? Yes Ensure that the financial statement fairly represent the position of the Was a clean audit obtained from the Auditor-General? Yes Municipality and that performance information is reliable, accurate and complete Monitor whether the issue of un- and underfunded mandates as well as Quarterly feedback given regarding the process to which NT committed Yes electricity distribution is addressed by NT at a national level in an attempt to keep municipalities financially sustainable themselves on 29 Nov 2011 at a MinMay meeting? MFMA Section 21(2): When preparing the annual budget take into IDP taken into account when preparing the annual budget? Yes account the municipality's IDP MFMA Section 27(1): Inform the MEC for finance of any non-compliance MEC informed of non-compliance, if any? Yes or N/a by the municipality of any provisions of this Act or any other legislation pertaining to the tabling or approval of an annual budget or compulsory consultation processes MFMA Section 29(1): Authorise unforeseeable and unavoidable Unforeseeable and unavoidable expenditure, if any, authorised? Yes or N/a expenditure for which no provision was made in an approved budget in emergency or other exceptional circumstances MFMA Section 31: Give approval that expenditure for a programme during a financial year may exceed the amount of that year's appropriation. Approval, if applicable, given? Yes or N/a MFMA Section 46(2): Sign a resolution of the council which approves the Resolution, if applicable, signed? Yes or N/a debt agreement regarding the incurrence of long-term debt 21

22 Performance Objectives KPI s Targets MFMA Section 52(c): Take all reasonable steps to ensure that the Municipality performed its constitutional and statutory functions? Yes municipality performs its constitutional and statutory functions MFMA Section 53(1)(b): Co-ordinate the annual revision of the IDP and Annual revision and preparation co-ordinated? Yes the preparation of the annual budget, and determine how the IDP is to be Was it determined how the IDP is to be taken into account or revised? Yes taken into account or revised for the purposes of the budget MFMA Section 53(2): Report to the council and the MEC for finance any Any delay reported to the council and the MEC, if applicable? Yes or N/a delay in the tabling of the budget, the approval of the SDBIP or the signing of the annual performance agreements MFMA Section 54(1): On receipt of section 71 monthly budget statements or the section 72 mid-year budget and performance assessment - check whether the municipality's approved budget is implemented in Implementation of the approved budget in accordance with the SDBIP Yes accordance with the SDBIP checked? consider and, if necessary, make revisions to the SDBIP SDBIP considered and revisions made if necessary? Yes issue appropriate instructions to ensure- Appropriate instructions issued? Yes (a) that the budget is implemented in accordance with the SDBIP; and (b) that spending of funds and revenue collection proceed in accordance with the budget identify any financial problems facing the municipality Financial problems identified, if any? Yes or N/a MFMA Section 55: If the municipality has not approved an annual budget Was a serious financial problem referred to in section 136, if any, Yes or N/a by the first day of the budget year or if the municipality encounters a immediately reported to the MEC? serious financial problem referred to in section 136, to immediately report the matter to the MEC for local government MFMA Section 131(1): To ensure that any issues raised by the Auditor- % of issues raised by the Auditor-General in an audit report addressed 100% General in an audit report are addressed MFMA Section 133(1): If the accounting officer of fails to submit financial statements to the Auditor-General or if the mayor fails to table the annual report in the council, to promptly table in the council a written explanation setting out the reasons for the failure Written explanation, if applicable, tabled in the council? Yes or N/a 22