Close-Out Report

Engineering
INNER CITY COMMUTER LINKS UPGRADE PROJECT: PHASE 2
JULY 2012
COMMUNITY LIAISON PROGRAMME
PROJECT C L O S E-O U T REPORT
Inner City Commuter Links Upgrade
Project : PHASE2
Prepared By:
Prepared For:
RSG Engineering (Pty) Ltd
Johannesburg Development Agency
24 Oakhhurst
3 President Street
Lyndhurst
Newtown
2090
2113
PO Box 61352
PO Box 61877
Marshalltown 2107
Marshalltown 2107
Close Out Report – July 2012
DOCUMENT CONTROL SHEET
REPORT TITLE:
CLOSE OUT REPORT – COMMUNITY PARTICIPATION CONSULTANCY SERVICES FOR
DATE: 25 JULY, 2012

REPORT STATUS: FINAL REPORT
CLIENT: JOHANNESBURG DEVELOPMENT AGENCY (JDA)
PROJECT No: JDA 061.6.1/CN026
DOCUMENT DISTRIBUTION
Copy Type Recipient Name Organisation

No.
1 Soft Copy: Email / CD-Rom Ms. Claudi Marais Akweni Project Managers
Hard Copy
1 Soft Copy: Email Ms. Joy Jacobs JDA
Note: Electronic copies of this report are issued in portable document format and distributed via one of the
following media; CD-ROM, Email or Internet Secure Server. Copies held RSG Engineering are stored on mass
storage media archive.
________________________
Mr. Rudzani Mposi
Project Manger
RSG Engineering (Pty) Ltd

24 Oakhurst Complex, Lyndhurst, JHB 2090 Gauteng Republic of South Africa Cell: 073 191 8943 Tel: 011 024 9804 Fax: 086 274
9771
Email: rsgengineerin@gmail.com
Disclaimer
No part of this publication may be reproduced in any manner without full acknowledgement of the source.
CPC Close out Report

Prepare by RSG Engineering (Pty) Ltd Page 1
CLOSE OUT REPORT – COMMUNITY PARTICIPATION CONSULTANCY SERVICES FOR

Table of Contents
EXECUITVE SUMMARY 3
1 INTRODUCTION 5
1.1 BACKGROUND TO THE PROJECT 5
1.2 RSG’s APPOINTMENT AND MANDATE 5
2 CPC PROCESSES COMPLETED 6

2.1 STAKEHOLDER IDENTIFICATION PROCESS 6
2.2 STAKEHOLDER MEETINGS 7
2.2.1 MEETING WITH WARD COUNCILLORS: 05 DECEMBER 2012 7
2.2.2 MEETING WITH KEY IDENTIFIED STAKEHOLDERS 8
2.2.3 MEETING WITH PARK CENTRAL SHOPPING CENTER 9
2.2.4 MEETING WITH TAXI ASSCOIATION 9
2.3 PUBLIC MEETINGS 10
2.3.1 WARD 59 AND WARD 123 PUBLIC MEETING 10
3. LABOUR DATABASE AND EMPLOYMENT OF LOCAL LABOUR AND SMMEs 11
3.1 LOCAL LABOUR AND SMME DATABASE 11

3.2 COMMUNITY LIAISON OFFICER (CLO) 11
3.3 SMME APPOINTMENT PROCESSES 12
3.4 LABOUR EMPLOYMENT PROCESSES 13
4. ONISTE ISSUES
4.1 MEETING WITH SMMEs AND COUNCILLORS 14
4.2 OTHE ISSUES 15
5. CONCLUSION AND LESSONS LEARNT 16
6. APPENDICES 17

EXECUITVE SUMMARY
The goal of the City government's Inner City Regeneration Strategy is to raise and sustain private
investment in the inner city, leading to a rise in property values. The components of the strategy are:
Intensive urban management, including improvements to service quality, strict enforcement of by-
laws, management of taxis and informal traders, and sound credit control.
Upgrading and maintenance of infrastructure to create an environment attractive to both residents
and business.
Support for those economic sectors that have the potential to thrive in the inner city, and encourage
growth in those sectors.
Discouraging "sinkholes", meaning properties that are abandoned, overcrowded or poorly
maintained, and which in turn "pull down" the value of entire city blocks by discouraging
investment.
Encouraging "ripple effect" investments that can lift an entire area.
The Johannesburg Development Agency (JDA) is an agency of the City of Johannesburg which stimulates
and supports area-based development initiatives throughout the Johannesburg metropolitan area in
support of the City’s Growth and Development Strategy. The JDA is currently upgrading and renovating
existing infrastructure within the Inner City precinct.
The Inner City Commuter Links Project is one such project which is implemented by the JDA. In 2010/11
the project involved the design and implementation of upgrade initiatives for identified streets,
pavements, and public spaces that serve as commuter links within the Inner City of Johannesburg. There
were two components planned for implementation namely Package A – The Braamfontein Commuter
Links Upgrade which is completed, and Package B - The Art Gallery-BRT Precinct which was partially
completed. The implementation of further initiatives in Package B were to resume at a later financial
year (ending June 2012), as Phase 2 of the project. The initiatives included the following: (1) the upgrade
of pedestrian infrastructure along Twist and Troye Street, and (2) optimise access, egress and circulation
for Jack Mincer taxi facility.

RSG Engineering (Pty) Ltd (RSG) was appointed by the JDA in November 2011 to undertake the
stakeholder identification and provide public consultation components of the project. The scope of work
involved the public consultation components of the project as well as stakeholder identification.
RSG commenced the stakeholder identification and consultation process in December 2011 by
convening briefing meetings with key leadership groups from Ward 59 and ward 123. Furthermore, RSG
presented the public participation component of the project at public meetings held with the affected
stakeholders within the wards. These meetings sought to get a buy-in of the project from the ward
governance committee; to discuss the possible involvement of the local SMME’s and labour in the
project; and to discuss the scope of work of the project as well the procedure to be followed in
appointing SMME’s.
In January 2012, RSG compiled a stakeholder database for the project with the aim to identify and
accommodate the needs of the adjacent property owners in the construction programme and assist
stakeholders in mitigating construction related impacts.
RSG further undertook a skills and SMME audit process in order to compile a labour and SMME database
that was used by the contractor to employ local labour. RSG assisted the contractor with the CLO
procurement and the monitoring of the local labour employment processes on site.

1. INTRODUCTION
1.1 BACKGROUND TO THE PROJECT

The Inner City Commuter Links Upgrade project aims to create a pedestrian friendly and walkable urban
environment through the establishment of a network of public spaces, and improved circulation around and access
to formal taxi, bus and rail facilities.
The project endeavors to:
Build an Inner City that is functional and liveable
Create a safer and more walkable network in the Inner City;
Continuity and connectivity for pedestrians towards and between places of work, public transport and
other facilities in a legible and effective way
Optimise the use of existing facilities
Quality of the public realm contributing to enhanced safety and enhanced perceptions of safety
Complement urban management initiatives to clean up and maintain the Inner City;
Convey to Inner City residents that the City is intent on creating a safe and healthy urban environment in
which they can live in dignified circumstances;
Investor confidence through commitment demonstrated by the CoJ
Convey to investors that the Inner City is a viable investment location in which future value returns are
not at risk.
1.2 RSG’s APPOINTMENT AND MANDATE
RSG was appointed by the JDA in December 2011 to implement the Public Participation Programme for the
construction of the Inner City Commuter links upgrade Project: Phase 2 Facility. RSG was responsible for consulting
with the community during the project’s implementation phase.
RSG’s mandate was to:
Identify key stakeholders and compile a database of interested and affected parties;
Inform the Ward Councillor/s and / or Ward Committee/s of the project and its processes;
Arrange, facilitate, minute and / or report on public meetings and ward public meetings;
Conduct a skills and SMME audit, and compile local labour and SMMEs databases;
Attend project site meetings;
Submit a monthly report highlighting the number of locals labourers employed;
Assist with the procurement, training, monitoring, and management of a Community Liaison Officer
(CLO);
Assist with the employment of local labour and SMMEs;
Consult with adjacent property owners and tenants to mitigate construction related impacts; and
Arrange and assist with the dissemination of information.

2. CPC PROCESSES COMPLETED
2.1 STAKEHOLDER IDENTIFICATION PROCESS
Stakeholders are people, groups, or institutions that are likely to be affected by the proposed development
intervention, or those that can affect the outcome of the development. Stakeholders include implementing agents
and authorities; beneficiaries including directly impacted property owners and tenants; interest groups; and other
affected groups such as individuals, families, communities and businesses which may be either positively or
adversely affected by the development intervention.
RSG commenced with the Stakeholder Identification (SI) process in December 2011. In consultation with the JDA,
the SI process was initiated by determining the relevant ward councillors to be consulted whose wards will be
affected by the project- immediately after RSG’s appointment by the JDA.
RSG engaged all local stakeholders and Interested & Affected Parties close to the project site to notify them of the
construction activities within the area. To this end, an Interested & Affected Parties (I&APs) database was
complied following initial consultations with all stakeholders within the project area.
The I&APs database constituted all businesses, residential buildings, taxi associations operating at the Jack Mincer
Taxi Rank, and all street traders (legal & illegal traders) operating within the project area. (See Appendix 1: I&APs
Database).
The consultation process with illegal traders was mostly unsuccessful. Most of the illegal traders were
uncooperative and refused to give off their contact details, asserting that they might be evicted or arrested by
JMPD. These were traders operating on the island in front of the Jack Mincer taxi rank (selling fruits, cosmetics,
sweets & snacks, and various food); the traders on the bridge (selling sweets, fruits and snacks) and traders along
Twist/Troye (selling braai meat, vegetables, shoes, belts and snacks). A list of legal traders was obtained from MTC,
however the list only contained the names of the traders and not their contact numbers.

The following were identified as key stakeholders for the Inner City Commuter Links Upgrade Project-Phase 2:
WARD GOVERNANCE
Ward Councillors:
Ward 59: Cllr Francinah Mashao
Ward 123: Cllr Mzwandile Tyobeka
COMMUNITY LEADERSHIP
Ward 59 & 123 Community Leadership
CITY OF JOHANNESBURG (COJ) ADMINISTRATIVE REGIONAL REPRESENTATIVES

CoJ Transportation Department: Ms. Selinah Khumalo
Mr. Darius
MTC: Ms. Thuli Mkhize
BUSINESSES
Various Business
Street Traders
Taxi Associations
RESIDENTIAL
Various Residential Building Apartments
2.2 STAKEHOLDER MEETINGS

2.2.1 MEETING WITH WARD COUNCILLORS: 05 DECEMBER 2012
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RSG arranged initial planning and coordination meeting with the ward councillors on the 05 December 2011 at
the JDA offices in order to present the conceptual design for the project. The purpose of these meeting was to
reach consensus on the broad principles relating to the project’s design and scope of works as well as the labour
and CLO appointment processes.
The key issues raised and resolutions taken at the meeting are listed in the table below:
TABLE 1: KEY ISSUES RAISED IN THE MEETING WITH WARD 59 & 123 COUNCILLORS
No. ISSUES RAISED KEY RESOLUTIONS / DESCRIPTIONS
1. Project introduction and scope of The project area covers Twist / Troye from Smit to Plein Street, Plein Street from
work Klein to Quartz Street, and Edith Cavell from Bree to Plein Street.
The Councillors agreed in principle to the proposals however as suggested by
Councillor Tyobeka, a site visit would be useful to understand the impact on the
ground.
2. Councillor Mashoa raised concerns Joy Jacobs (JJ) advised that the rank itself is not been refurbished.
about trading in the area and This project will only address access and egress to and from the rank.
whether or not the refurbishment All “legal” registered traders will still be accommodated throughout the project
of the rank would accommodate area.
traders. All “illegal” unregistered traders will be dealt with by MTC. Where no trading is
permitted, signage to this effect will be installed and then JMPD can enforce.
3. Councillor Mashoa emphasised that JJ advised that the professional team are investigating various options and would
robust materials must be used for select the most robust as possible whilst maintaining visual permeability.
the pedestrian barriers.
4. Both Councillors raised concerns It was agreed that following the walkabout, a short meeting will be held to
over the deteriorating condition of finalise the arrangements with respect to which Ward the CLO will be appointed
the Drill Hall. from, as well as the split between the wards with respect to local labour and
SMME’s.

5. Programme JJ advised that the project has to go out on tender for a main contractor on 16
January 2012.
This tender will close on 31 January 2012
It is anticipated that the main contractor will commence on site towards the end
of February 2012.
Planned completion is at the end of June 2012.
6. Way Forward Site visit commencing at the Johannesburg Art Gallery on Friday 9th December
2011 at 9am.
Tentative meeting with Ward Leaders on Thursday 12th January 2012.
Tentative public meeting on Monday 23rd January 2012.
Tentative meetings will be confirmed following the site visit on Friday.
7. General It was confirmed by both Councillors that Councillor’s Xaba’s ward is not affected
by this project.
2.2.2 MEETING WITH KEY IDENTIFIED STAKEHOLDERS CLOSE TO THE PROJECT SITE: 13 JANUARY
2012
A meeting was convened with key identified stakeholders close to and within the project area on the 13th January
2012 at the JDA Offices. The key stakeholders included (i) the garage owner on Twist / Troye Street, (ii) the Hotel
on Twist / Troye, (iii) Park City Shopping Centre on Twist / Troye, and (iv) the Landrost Plein Street. The meeting
was arranged and minuted by RSG and conducted in coordination with Ms. Joy Jacobs of the JDA. The purpose of
the meeting was to make a detailed overview presentation of the project scope to the stakeholders, discuss
possible construction related impacts which would affect them, and to accommodate the needs of these
stakeholders in the construction programme and assist to them in mitigating construction related impacts.
(See Appendix 3 for detailed minutes of this meeting)
The key issues raised and resolutions taken at the meeting are listed in the table below:
TABLE 2: KEY ISSUES RAISED IN THE MEETING WITH IDENTIFIED KEY STAKEHOLDERS
No. ISSUES RAISED KEY RESOLUTIONS / DESCRIPTIONS
1. Project introduction and scope of The project area covers Twist / Troye from Smit to Plein Street, Plein Street from
work Klein to Quartz Street, and Edith Cavell from Bree to Plein Street.
The Councillors agreed in principle to the proposals however as suggested by
Councillor Tyobeka, a site visit would be useful to understand the impact on the
ground.
2. Inquiry whether the street leading It was indicated that depending on the design, the street might be cut to extend
to the entrance of the fuel garage the pedestrian walkway, however full details will become available when the
will be cut/ reduced, as the engineer finalises the design.
underground fuel tanks will be
affected.
3. Repaving to be done in front of the Consent for the repaving to be done by the representative of the hotel.
hotel entrance and driveway
through to the parking.
4. Removal of tiling in front of the Consent for the removal of tiling by representative of the Landrost.
Landrost and replaced with a new
paving pattern.
5. Inquiry about the removal of the The traffic light is there to coordinate the two way BRT Bus routes, and so will not
traffic light on the island which is in be removed.
the middle of the. Traffic engineers to investigate the re-positioning of the traffic light.
6. Way Forward All stakeholders will notified when construction will commence at their streets.
Alternative bins to be investigated which will be approved by Pikitup.
Bollards to be installed to prevent cars and taxi from parking on the road side
where necessary.

2.2.3 MEETING WITH PARK CENTRAL SHOPPING CENTER REPRESENTATIVE: 15 FEBRUARY 2012
A separate meeting was arranged with the landlord of Park Central shopping Center, as he was unavailable to
attend the stakeholder meeting on the 13th February 2012. The meeting was arranged and minuted by RSG and
conducted in coordination with Mr. Paul Hanger of Iyer Urban Design Studios. The purpose of the meeting was to
meet with the remaining identified stakeholder, i.e. Park Central Shopping Center on Twist/Troye street, to make a
detailed overview presentation of the project scope to the stakeholder. (See Appendix 4 for detailed minutes of
this meeting)
Tabulated below are key issues raised at the meeting.
TABLE 3: KEY ISSUES RAISED IN THE MEETING WITH PARK CENTRAL SHOPPING CENTER
No. KEY ISSUES RAISED
1. Possibility of removing steps in front of the shopping center to extend the side walk by the shopping center.
Installation of new paving and repairing the corners.
Concerns about blocking the entrance gate by construction vehicles.
Concerns about drains and water valves since the last contractor damaged them.
Reconfiguration and construction of the side walk levels in front of the shopping center.
Consent by the Shopping Center representative (Mr. Michael Mogoane) for the reconfiguration and construction of the
side walk levels and the removal of steps in front of the shopping center.
2.2.4 MEETING WITH TAXI ASSCOIATION REPRESENTATIVES AT JRA: 02 FEBRUARY 2012
A meeting was convened with the Taxi Associations in consultation with CoJ Transportation Department on the 02
February 2012 at JRA Offices. The purpose of the meeting was to make a presentation of phase 2 of the ICCL
project to the Taxi Association as a major key stakeholder. (See Appendix 5 for detailed minutes of this meeting)
A summary of the key issues raised at the meeting are tabulated below:
TABLE 4: KEY ISSUES RAISED IN THE MEETING WITH TAXI ASSOCIATIONS

No. KEY ISSUES RAISED
1. Introduction and presentation of the project scope to the councillors.
Taxi associations to communicate the relocation of taxis from Edith Cavell to Drill Hall and the project scope to taxi
operators.
JDA and RSG to notify Taxi Associations when and how the project will unfold.
Inquiry about the establishment of a private loading zone for trucks on Edith Cavell for shop owners.
Inquiry about the installation of traffic lights on Edith Cavell.

2.3 PUBLIC MEETINGS
2.3.1 WARD 59 AND WARD 123 PUBLIC MEETING: 16 & 17 JANUARY 2012
A presentation on the Inner City Commuter Links Upgrade Project Phase 2 was made at ward public meetings. The
public meetings were held separately for each ward, i.e. 16 January 2012 for ward 59 and 17 January 2012 for
ward 123. Mr. Paul Hanger from Iyer Urban Design Studio presented information on the design of the project, and
details of the scope of works, whereas Mr. Rudzani Mposi from RSG informed the attendants of the processes to
be followed when appointing the CLO, local labour and SMMEs. An open discussion was held following the
presentations and the key issues emanating from the discussion are summarised as follows:
TABLE 5: KEY ISSUES RAISED AT THE PUBLIC MEETINGS

No. ISSUES RAISED DESCRIPTION
1 SMME database and required RSG explained that they would compile an SMME database and give it
documentations: to the main contractor. Further, RSG invited all SMMEs from both
Wards to register their companies and CVs. To be registered on the
database the SMMEs will have to provide the following documents:
1. A company profile
2. A certified copy of registration
3. A valid tax clearance certificate
4. Certified copies of the members’ ID books
5. A letter from the bank confirming account details
6. CIDB registration certificate
7. A letter of good standing
8. Proof of registration with UIF
9. Proof of residence
The project would empower local SMMEs by giving them exposure to

various trades. This would help them to obtain better CIDB ratings.
2 Scope of work: The project will entail civil works; i.e. paving, kerbing, gates, cleaning,
installation of bollards, fencing, dust bins etc.
Various opportunities for kerbing and walkways construction in the
project.
3 Submission of the All SMMEs and laborers should submit their CVs and Profiles to RSG at
outstanding SMME the Green House for registration.
documents:
4 Inexperienced SMMEs: RSG explained that only SMMEs with experience would be appointed
and advised SMMEs without experience to form joint ventures with
SMMEs with experience as this would help them gain experience.
5 CLO appointment: RSG indicated that CLO appointment process will entail interviewing the
candidates by the contractor and RSG.
6 Monitoring of local labour SMMEs would not be allowed to bring more than five skilled people to
employment by SMMEs: work. It was indicated that the rest of the labourers would be acquired
from the database through the CLO.
7 Training The contractor will allocate a budget for the training of both SMMEs and
laboeres

3. LABOUR DATABASE AND EMPLOYMENT OF LOCAL LABOUR AND SMMEs
3.1 LOCAL LABOUR AND SMME DATABASE
Based on the agreement of the JDA and Ward 59 and Ward 123 community leaders, RSG undertook a registration
process for both Skills & SMMEs at the Greenhouse. Two teams were present to register Labour & SMME for both
wards separately. The registration process was conducted from 18 January 2012 to 20 January 2012. RSG used the
profiles and CVs collected to compile an SMME and local labour database. The skills audit yielded the following
results:
TABLE 6: SKILLS AUDIT - WARD 59 AND WARD 123

WARD 59
SKILL LEVEL/TYPE REGISTERED CANDIDATES/ENTITIES
Unskilled 117
Semi-skilled 0
Skilled 27
SMMEs 7
WARD 44
SKILL LEVEL/TYPE REGISTERED CANDIDATES/ENTITIES
Unskilled 186
Semi-skilled 0
Skilled 36
SMMEs 10
The skills audit targeted people with skills in road construction, storm water channels cleaning, kerb laying, paving,
pipe laying, brick laying, block paving etc. Other construction related skills were also recorded. Applicants without
any prior construction experience were recorded as unskilled labor.
All the company profiles received were collated to form the SMME database for both wards. It was noted that only
handful of profiles were submitted from both wards, seven profiles from ward 59 and ten profiles from ward 123.
3.2 COMMUNITY LIAISON OFFICER (CLO)

Ward 59
RSG shortlisted three candidates for the CLO vacancy. The one candidate was recommended by Cllr. Mashao. The
shortlisting process targeted individuals with construction related experience, previous experience as CLO,
Community liaison and familiarity with ward issues as well as good interpersonal skills. To this end, the three
shortlisted candidates whose CVs are attached herein are:
Zwelithini Ernest Mahlalela
Gloria Sindiwe Kwetane
Akani Jane Macheke

Ward 123
Shortlisting of CLO candidates for ward 123 was done by councillor Tyobeka. CVs of the candidates were handed to
RSG, and these are attached herein. The shortlisted candidates are:
Kagiso Sakwe
Maitemogelo Maepa
Victoria Babili
3.3 SMME APPOINTMENT PROCESSES

A database of construction SMMEs was created from the data received during the registration period, and from
the skills audit that was conducted by RSG. RSG advised the contractor to examine the SMMEs on the list and
determine which SMMEs they would be willing to employ on a sub-contractual basis. The following local sub
contractors were appointed on the project:
TABLE 7: APPOINTED SMMES FROM WARD 59

NAME OF SMME TYPE OF WORK AREA OF WORK VALUE OF WORK
Gugu Lamashandu Kerbs, Paving, Pedestrian Twist & plein, Plein & edith, R 94,924.81
Ramps, Relay Kerbs Edith cavell & Bree
Lubokhosi Paving, Kerbs, Kerb Inlet Edith cavell between plein and R 28,983.70
bree, Edith cavell loading
zone
Arethusaneng Paving Plein between Twist and R 11,366.83
Quartz
TABLE 8: APPOINTED SMMES FROM WARD 123

NAME OF SMME TYPE OF WORK AREA OF WORK VALUE OF WORK
Radzindou Paving, Kerbs, Pedestrian Twist between smith & R 28,011.69
Ramps Wolmarans, Leyds & Twist,
Bok & Twist, Koch & Twist
The Likes Trading Kerbs, Paving, Pedestrian Twist between Smit & R 102,281.90
Ram.ps, Gates, Cleaning, Wolmarans, Twist &
Pedestrian Deterrent Wolmarans, Hancock & Twist,
Twist & Plein, Koch & Twist,
Bok & Twist, Leyds & Twist
Qaqamba Cooperative Paving, Kerbs Plein between twist and edith, R 28,098.85
Plein between klein & edith

3.4 LABOUR EMPLOYMENT PROCESSES

RSG undertook a registration process for Labor at the Greenhouse. Two teams were present to register CVs for
labor for both wards separately. The registration process was conducted from 18 January 2012 to 20 January 2012.
A summary of the employment statistics for the project is provided in the table below.
TABLE 9: LOCAL LABOUR STATISTICS
Current Quarter 3 Quarter 4 Year to

Labour Quarter 1 Quarter 2
Month (Jan-Mar) (Apr-Jul) Date
Moseme’s Labour 11 11 22 33
Moseme’s Local Labour 33 2 78 80
SMME’s Labour 15 N/A N/A - 70 70
SMME’s Local Labour - - 70 70
Total Labour 59 13 240 253

4. ONISTE ISSUES
4.1 MEETING WITH SMMEs AND COUNCILLORS: 27 JUNE 2012

RSG facilitated a meeting between local SMMEs, the JDA and the respective councillors. The SMMEs approached
their respective councillors to complain about the rates offered on the project, asserting that the rates are too low
and that they are not making any profit and are currently in a deficit, owing the laborers. A meeting was convened
on Wednesday, 27 June 2012 at CJ Cronje Building to discuss the matter with the councillors. The meeting was
attended by: The SMMEs; JDA; RSG Engineering; Moseme; CLOs; and the Councillors.
The following issues were raised at the meeting:
TABLE 10: KEY ISSUES RAISED DURING THE MEETING HELD WITH SMMEs AND THE COUNCILLORS
No. ISSUES RAISED KEY RESOLUTIONS / DESCRIPTION
1. SMME raised complains about the rates The JDA explained that the rates offered to SMMEs were gazetted, and that the
offered. main contractor was not underpaying them.
Moseme explained that they offered a 20% increment on the rates offered, and
that the SMMEs should be making a 23% profit.
2. The JDA explained that the City’s Supply The 10% & 30% of the contract value is based on the work which the SMMEs are
Chain Management (SCM) Policy is that capable of doing.
the SMMEs should be given 30% of the Furthermore, the 10% & 30% is to be split equally among the SMMEs.
total contract value, provided that they
can supply their own plant, labour and
material.
If the SMMEs cannot provide their own
plant, labour and material – then they are
subjected to 10% of the total contract
value.
3. Complaint by SMMEs that the cumulative JDA highlighted that the R490,000 is a target which the contractor is working
amount that each made, doesn’t add up to towards expending on the SMMEs.
the 10% of R490, 000 collectively. It is a target and not definite figure that is guaranteed. SMMEs will only be paid
for the work they have done, i.e. they can end up being paid less or more than
the target, depending on the value of work they have done.
4. The councillors highlighted that the city’s JDA highlighted that the City has realised the inefficiency of the current SCM
SCM policy is not helping the SMMEs, as policy, and is currently reviewing it.
they are left worse off than they were. JDA’s EXCO has decided to review its own policy to ensure that SMMEs benefit.
This will involve coordinating Developmental construction projects with longer
project duration to ensure that SMMEs are received sufficient supervision and
training, as opposed to the current short term, fast track project.
5. Councilor requested that the contractor The JDA highlighted that the SMMEs should not have accepted the work if they
helps the SMMEs with the deficit they are not able to make profit.
currently have so that they can pay their The contractor cannot pay the SMMEs anymore money apart from what is due

workers to them, because the contractor will also make a loss.

The problem is that the SMMEs cannot manage their workers to reach the daily
production target; hence they are not making profit.
4.2 OTHE ISSUES

4.2.1 SMME ISSUES
• Prior to their appointment, the SMMEs were not satisfied with the rate offered by the main contractor.
They were opting for the rate which was offered in their previous contract.
nd
• As per the client’s request, RSG convened a on the 22 April 2012 meeting with all the SMMEs asking
them to affirm their stand on the rate they request by signing a letter that they are rejecting the offered
rate and would only settle for the rate they request. None of the SMMEs agreed to sign the letter. They all
agreed to settle for the rate offered by the main contractor.
• The main contractor offered to increase the rate by 20% for both paving and kerbing.
• The contractor removed Radzindou Trading Enterprise from site during the second week of May, because
they refuse to adhere to the contractor’s instruction and were not cooperating. Work done by Radzindou
was of poor quality, and they only do half of the work and leaves the rest incomplete. The contractor
requested Radzindou to correct all work which was not properly executed. The SMME only returned after
a week to make corrections.
4.2.2 MEDIA LIAISON

• RSG Engineering prepared and distributed the pamphlets notifying the public, stakeholders, interested
and affected parties of the pending construction within the project area.
• The pamphlets were prepared in adherence to the contractor’s programme, for each street where the
works will be executed.
4.2.3 I&APs CORRESPONDANCE

th
• On the 14 May 2012 – RSG, the Contractor, CLOs, the Engineer and Architect investigated the conditions
below the different areas where the contractor is working and there is a basement underneath.
• Photos were taken of the current condition, to ensure that we have the conditions with which to
benchmark after construction, in order to protect ourselves against any future allegations to be made by
the building owners.
• Photographic record was made and the respective building owners were asked to sign off the present
state of the basements.
4.2.4 ONSITE ACCIDENTS

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On the 10 July 2012, Mr. Nkosinathi Mhlongo, a local laborer, got injured while on duty. He was loading slabs on a
TLB and his hand got stuck under the concrete slab, fracturing his Right Ring finger. A detailed medical report has
been attached in Appendix10. Moseme promised to employ the laborer for as long as he is fit to work again, even
after the project has elapsed.

5. CONCLUSION AND LESSONS LEARNT
This report presents an accurate account of RSG’s public consultation process which was aimed at consulting key
stakeholders within City of Jo’burg departments, the ward councillors of Ward 59 and Ward 123, the community
and key stakeholders located within the Jack Mincer Taxi Rank area.
RSG fulfilled its mandate which was to ensure that the project is transparent and supported by the stakeholders.
RSG facilitated participation and consultation with key stakeholders, promoted a positive climate for the project,
and facilitated the flow of information between stakeholders, the client, and the project team.
The outcome of the skills audit and SMME registration process within Ward 59 and Ward 123 was successful. To
this end, a labour database of unskilled, semi-skilled and skilled labour as well as the SMMEs database was
compiled. Furthermore, RSG undertook a stakeholder identification process and compiled an interested and
affected parties database.
The Jack Mincer Taxi Rank precinct experiences high levels of physical and social disorder, which makes it difficult
for the contractor and SMMEs to work on site.
Lessons Learnt:
Lessons learned are general statements that describe good practices or innovative approaches that are shared to
promote repeat application. They may also be descriptions of challenges or areas for improvement that are shared
to provide continuous improvement. These past experience can be used as a guide to improve future project
performance within the Jack Mincer / Art Gallery precinct. The following is a outline of lessons and challenges
learnt during the Inner City Commuter Links Upgrade Project - Phase2:
Better understanding of managing fast track construction projects within busy precincts.
Teamwork is Essential to ensure effective project delivery.
RSG intends to diversify into business strategy to include construction at a later stage – valuable lessons
were learnt: e.g. good management practices can maximize profits in construction projects.
There was lack of SMME supervision by the contractor – For future projects in this precinct; it is
recommended that the JDA makes it compulsory for the contractor to appoint supervisors specifically
designated to supervise SMMEs.
We’ve learned that it is important to clearly define an overarching Public Information and Public
Involvement Program as early in a program as possible.
We’ve also learned that it is essential to communicate the stakeholder participation process and how
involvement opportunities narrow as a project becomes more defined;

The level of internal communication must accommodate the size and de-centralized nature of a multi-
project program.
Management – We’ve learned that staffing resources must be at a sufficient level to adequately address the
demands of a project of this nature.
Several complaints were received from SMMEs regarding profit losses and deficits for wages – It is
recommended that the JDA restructures its policies regarding SMME development in future projects, since
SMMEs are merely doing labor broking rather than developing business skills within the construction sector.
Business Development for SMMEs – It is recommended that instead of taking the laborers and SMMEs for
construction related training, the JDA should consider Business Development Skills training for the SMMEs
so that they to understand the construction business - focusing pricing; tendering etc. which will enable
SMMEs to grow their businesses.
The JDA should consider coordinating Developmental construction projects with longer project duration to
ensure that SMMEs receive sufficient supervision and training, as opposed to the current short term, fast
track project.

6. APPENDICES

Appendix 1: I&APs Database

Appendix 2: Labour and SMME Database

Appendix 3: Minutes of Meeting with Key Stakeholders: 13 January 2012

Appendix 4: Minutes of Meeting with Park Central Shopping Centre

Appendix 5: Minutes of Public Meetings

Appendix 6: Minutes of Meeting with Taxi Associations

Appendix 7: Pamphlets and Notices

Appendix 8: SMMEs’ contracts, signed letters and proof of payments

Appendix 9: Signed Keys Register

Appendix 10: Medical Report


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Engineering

INNER CITY COMMUTER LINKS UPGRADE PROJECT: PHASE 2

COMMUNITY LIAISON PROGRAMME

PROJECT C L O S E-O U T REPORT

Inner City Commuter Links Upgrade

DOCUMENT CONTROL SHEET

DATE: 25 JULY, 2012

Copy Type Recipient Name Organisation

RSG Engineering (Pty) Ltd

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CLOSE OUT REPORT – COMMUNITY PARTICIPATION CONSULTANCY SERVICES FOR

2 CPC PROCESSES COMPLETED 6

3. LABOUR DATABASE AND EMPLOYMENT OF LOCAL LABOUR AND SMMEs 11

3.1 LOCAL LABOUR AND SMME DATABASE 11

5. CONCLUSION AND LESSONS LEARNT 16

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1.1 BACKGROUND TO THE PROJECT

1.2 RSG’s APPOINTMENT AND MANDATE

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2. CPC PROCESSES COMPLETED

2.1 STAKEHOLDER IDENTIFICATION PROCESS

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CITY OF JOHANNESBURG (COJ) ADMINISTRATIVE REGIONAL REPRESENTATIVES

2.2 STAKEHOLDER MEETINGS

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Tabulated below are key issues raised at the meeting.

Installation of new paving and repairing the corners.

Concerns about blocking the entrance gate by construction vehicles.

2.2.4 MEETING WITH TAXI ASSCOIATION REPRESENTATIVES AT JRA: 02 FEBRUARY 2012

TABLE 4: KEY ISSUES RAISED IN THE MEETING WITH TAXI ASSOCIATIONS

Inquiry about the installation of traffic lights on Edith Cavell.

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2.3 PUBLIC MEETINGS

TABLE 5: KEY ISSUES RAISED AT THE PUBLIC MEETINGS

The project would empower local SMMEs by giving them exposure to

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3. LABOUR DATABASE AND EMPLOYMENT OF LOCAL LABOUR AND SMMEs

3.1 LOCAL LABOUR AND SMME DATABASE

TABLE 6: SKILLS AUDIT - WARD 59 AND WARD 123

3.2 COMMUNITY LIAISON OFFICER (CLO)

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3.3 SMME APPOINTMENT PROCESSES

TABLE 7: APPOINTED SMMES FROM WARD 59

TABLE 8: APPOINTED SMMES FROM WARD 123

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3.4 LABOUR EMPLOYMENT PROCESSES

TABLE 9: LOCAL LABOUR STATISTICS

Current Quarter 3 Quarter 4 Year to

Moseme’s Local Labour 33 2 78 80

SMME’s Labour 15 N/A N/A - 70 70

SMME’s Local Labour - - 70 70

Total Labour 59 13 240 253

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4.1 MEETING WITH SMMEs AND COUNCILLORS: 27 JUNE 2012

The following issues were raised at the meeting:

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workers to them, because the contractor will also make a loss.

4.2 OTHE ISSUES

4.2.2 MEDIA LIAISON

4.2.3 I&APs CORRESPONDANCE