Description
Document tell business plan 2011 2012 city of joburg property company pty (ltd).
CITY OF JOBURG PROPERTY COMPANY (PTY) LTD
BUSINESS PLAN 2011/2012
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339999
City of Joburg Property Company Pty (Ltd)
“JPC”
Business Plan - 2011/2012
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BUSINESS PLAN 2011/2012
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Sign Off:
Managing Director Name: ……………………..…………………………………………….
Signature of MD: ………..…………………………………………………………………….
Signature of MMC: ……………………………………………………………………………
Date: ………..…………………………………………………………………………………..
Receipt & Review:
Signature of Finance Officer: ……………………………………………………………
Signature of CSU Representative: ……………………………………………………..
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TABLE OF CONTENTS
1. INTRODUCTION 4
2. EXECUTIVE SUMMARY 12
3. STRATEGIC ANALYSIS 16
4. STRATEGIC FOCUS AREAS 26
5. RISK ASSESSMENT 50
6. FINANCIAL IMPACT 59
7. HUMAN CAPITAL 67
8. APPENDIX 73
List of Tables
Table 1: IDP Programmes and Delivery Agenda for 2011/12 .............................................. 15
Table 2: Operational Plan for 2011/12 . ............................................................................... 30
Table 3: Risks, Mitigating Actions and Financial Impact ...................................................... 50
Table 4: Operational Expenditure ........................................................................................ 57
Table 5: Key Programme Costing ...............................................……………………………..63
Table 6: Operational Capital ............................................................................................... 66
Table 7: Staff Estimates ..................................................................................................... 68
Table 8: Staff Expenditure ................................................................................................... 68
Table 9: Expenditure on Contracted Services ..................................................................... 68
Table 10: Staff Expenditure vs. Operational Expenditure .................................................... 69
Table 11: Employment Equity ............................................................................................ 69
Table 12: Staff Turnover ..................................................................................................... 71
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1. INTRODUCTION
The City of Joburg Property Company (Pty) Ltd (JPC) was established in 2000 and is operating
as an MOE of the Council, Council, to deliver the following:
? Property Development;
? Property Management Services;
? Asset Management Services; and
? All ancillary services to the above.
The main objective of JPC as an MOE is:
“to develop and manage Council-owned properties for the purpose of maximising both social
and commercial opportunities for the Council in the short and longer term.” The nature of
business is the Management of the CoJ property portfolio.
The JPC’s mandate is to support the Council’s economic strategy, as well as Mayoral strategic
priorities aimed at making Johannesburg a “World-class African City”. JPC ensures that
economic growth and job creation occur to address socio-economic disparities and legacies of
discrimination and inequality as well as:
? Realizing value (social, financial and economic) for the CoJ;
? Supporting economic development and aligning the CoJ property portfolio with CoJ
priorities;
? Increasing the effectiveness of economically viable municipal and social use of properties;
? Management of risk and return with respect to the property portfolio and property
transactions for the CoJ.
JPC has positioned itself as the managing agent of the property assets of the Council,
responsible for maximising the social, economic and financial value of the CoJ’s total property
portfolio and enhancing the efficiency of its use as “The People’s Property Company”.
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1.1. VISION AND MISSION
1.1.1. Vision
To provide property management, property development, property asset management services,
land strategy, acquisition and stewardship in order to maximise the social, economic and
financial benefit to the CoJ and support the CoJ’s delivery objectives on a cost competitive
basis.
1.1.2. Mission
JPC is the manager of the property assets of the City of Johannesburg, responsible for
maximising the social, economic and financial value of the CoJ’s total property Portfolio and
enhancing the efficiency of its use. JPC will provide asset management, property management,
property development services and land strategy, acquisition and stewardship to the CoJ, as
well as interact with the general public in respect of this Portfolio. JPC will support the
achievement of the CoJ’s strategic priorities, including economic and social development and
the service delivery objectives of the CoJ.
1.1.3 Core values
Values have become an ethical foundation for all organizations and are therefore fundamental
to the JPC’s success. Such values are not just important but crucial to the overall ascendancy
of JPC. The following values were identified and adopted by JPC:
? Professionalism,
? Accountability,
? Responsibility,
? Customer Service and
? Trust
1.2. MANAGEMENT AND ORGANISATIONAL STRUCTURE
The current approved organisational structure is divided into the following three (3) core
business units and four (4) support units with 135 positions (both filled and vacant posts):
Core Business units
? Property Asset Management
This entails the strategic management of the City’s property portfolio which includes fixed
asset register management, physical verification of city fixed assets, property sector and
economic research, strategic plan and property advise, compilation of asset management
plans, portfolio sector and economic returns and council property information - to ensure
maximisation of portfolio returns in line with JPC’s social and economic mandate
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? Property management
This function involves obtaining and maintaining value from the property portfolio by
effectively administering & leasing, acquiring and selling and lastly ensuring maintenance of
the property and management of servitudes and encroachments and facilities management.
? Property development
Property development aims to maximise the financial, economic and social returns from the
sale and/or lease of council owned land by active engagement with the property
development value chain including site identification, property identification, site preparation,
in line with the City’s Growth and Development Strategy.
Support Units
? Human Resources
? Stakeholder Management
? Finance
? Legal
? Risk Management
? Company Secretariat
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The following is the current high level organisational structure of J PC which has a number of shortcomings:
Company
Secretary
HUMAN
RESOURCES
STAKEHOLDER
MANAGEMENT
FINANCE and
SUPPLY CHAIN
MANAGEMENT
PROPERTY
DEVELOPMENT
PROPERTY
PORTFOLIO and
FACILITIES
MANAGEMENT
LEGAL
SERVICES
ASSET
MANAGEMENT
MANAGING DIRECTOR
Strategic Support,
Risk and Reporting
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JPC is cognisance of the fact that the City is going through a transitional phase; the current
organisational design of JPC has its shortcomings in that:
? There are certain unrelated activities within management portfolios and there’s difficult links;
? The structure is geared towards economic gains rather than balancing social and economic
development opportunities;
? Difficult links between process units (Property Management, Supply Chain and Legal);
? No specific capacity dedicated to ensuring end to end accountability for process completion;
? Focus on revenue generating properties only;
? Certain unrelated activities within management portfolios;
? Insufficient capacity dedicated to key revenue generating functions, e.g. advertising and
? Insufficient capacity dedicated to asset planning
? The current staff compliment consists mostly of entry level staff, addressing mainly the
administrative functions of the organisation.
These shortcomings and imbalances have led to stakeholder frustration. The company
embarked on a turnaround strategy exercise and the results showed that JPC required a re-
engineering of functions within the company. The current organisational structure, therefore,
had to be re-organised to better reflect both the economic and social objectives and to ensure
end to end accountability for transactions handled by JPC.
To correct the imbalances and at the same time improve operational efficiencies of the
company, JPC therefore proposed the following structure to its Board:
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MANAGING DIRECTOR
ASSET
MANAGEMENT
PROPERTY
MANAGEMENT
HUMAN
RESOURCES
FINANCE
CORPORATE
SERVICES
PROPERTY
DEVELOPMENT
Executive
Secretary
Strategic/Executive
Support
Company Secretary
CHIEF
OPERATIONS
OFFICER
Risk Manager
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The following changes were made to the high-level structure:
? Chief Operating Officer – new position introduced
? Human Resources - position has been elevated to an Executive Manager level Legal –
Legal is no longer a direct report to the Managing Director
? Stakeholder Management – changed to Corporate Services as it includes activities such as
IT, company registry, marketing and public relations.
The majority of changes have been made in the middle management level to address the skills
shortage. The new proposed structure has 154 positions.
The Asset Management unit is reorganised to better reflect the future revenue model, by
ensuring that the following required asset management services are provided:
? Portfolio/property strategy development (including research and valuations)
? Implementation of COJ/MOE property strategy/requirements
? Roll out of asset management plans
2. The Property Management unit is reorganised to ensure end to end accountability for
transactions:
? There is a split between front office (external stakeholder engagements and property
management to meet revenue targets) and back office (pure transaction processing)
? The legal process function (legal administration) is positioned within the Property
Management transaction unit to ensure end to end accountability for transactions - legal
process staff will still have a reporting line into the Legal Advise unit, in order to ensure
best legal practice
? Provision for facilities management services
3. The Property Development unit is also reorganised to ensure end to end accountability for
transactions:
? Dedicated legal administration function
4. Current support functions have been reorganised as follows:
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? COO: Special projects, risk and reporting has been elevated to an Executive Manager
level. This unit will be responsible for overall CoJ reporting and to facilitate
transformation and provide project management services for the company. The focus
will also be on the development, implementation and monitoring of risk and the
management of the Land Regularization Programme. A project management office
(PMO) function is also within this unit for the potential incorporation into the future
operating model
? Creation of a corporate services unit with marketing and communications, office
management, stakeholder management and IT
? Human Resources will provide critical human resource management and streamline the
manner in which HR support of strategic, transactional and departmental support
activities are performed
? Legal services within the COO unit will perform true legal advisory services, not
transaction processing support
In general, this structure aims to enable the departments to focus on the critical and core
activities that contribute directly to JPC’s front line service delivery.
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2. EXECUTIVE SUMMARY
JPC’s mandate is to support the CoJ’s economic strategy as well as Mayoral strategic priorities.
These strategies are aimed at making Johannesburg a “World-class African City” through
ensuring that investment, economic growth and job creation occur. As such the JPC sees as a
core part of its business to support and encourage investment and growth, but also to address
socio-economic disparities and legacies of discrimination and inequality as well as achieving the
following priorities:
? Realizing value (social, financial & economic) for the CoJ;
? Supporting economic development and aligning the CoJ Property Portfolio with CoJ
priorities;
? Increasing effectiveness and efficiencies in respect of municipal and social use properties;
and
? Management of risk and return with respect to the Property Portfolio and property
transactions for the CoJ.
Financial and Budgetary Environment
In order to deliver its mandate effectively, it is critical that the costs incurred in managing the
City’s property portfolio are countered by revenue earned. The impact of a reduced budget will
have an adverse effect on service delivery on JPC projects. However, JPC looks for alternative
sources of funding. Financial year 2010/11 is a typical example of insufficient Capex budget
received:
REQUESTED RECEIVED
JPC R2.5m R2m
CoJ Portfolio R115.3m R13m
TOTAL R117.8m R15m
Impact of under budgeting
The impact of under budgeting results in the following:
? Projects of CAPEX value of R115.3 and investment valued at over a billion will not be
realised.
? Facilities management will not be effectively implemented resulting in dilapidated property
? Progress in Site development and site preparation will decline resulting in lack of realisation
of the value of land
? Job creation will be negatively impacted.
? Negative impact on infrastructure development and thus reduce the value of the City’s rate
base.
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Some of JPC’s projects are unfunded and they are usually rolled over. The magnitude and the
size of the projects means that the timeframe to completion is between 3 and 5 years before a
completed development can realise a value. Over the years, JPC has attracted R8.5 billion
worth of investments but in order to realise the economic value of these investments it is critical
to proceed with and finalise them, as they impact on job creation, infrastructure development
and improved rates base.
For the 2011/12 financial year, the company’s objectives would be achieved with the following
CAPEX budget requested:
REQUESTED
JPC R2.5m
CoJ Portfolio R69.35m
The reduced funding is a result of the organisation prioritising specific projects. It is therefore
critical that the budget is fully funded.
Core projects
The company’s priorities are as follows
? Complete physical verification of the asset register- Asset Management
? Accelerate land regularisation throughout all regions – COO office
? Clean up of outdoor advertising portfolio and revenue maximisation of the portfolio
? Development of a portfolio strategy
? Asset management planning
? Property value creation – all business units
? SDA refinement in consultation with City
? Implementation of a turnaround Strategy
? Completion of core projects as per the Operational plan in Table 2
Inter-governmental initiatives and collaboration with other sectors:
Collaboration with other Municipal Owned Entities (MOEs), City Departments, provincial
departments, national departments and the private sector is critical to delivering quality
services. JPC endeavours to identify and engage with private sector partners for the
implementation of capital projects which contribute to the economic growth of the City, as per
the Economic Development Sector plans. Our engagement with private sector has attracted
investments of R8, 6 billion; however the company is looking at attracting more investments in
future
Regulatory issues:
JPC is governed primarily by the Municipal Systems Act (as amended), Companies Act 2008
and Municipal Finance Management Act No 56 of 2003 (MFMA) and its various Regulations.
The primary objective of is to ensure sound and sustainable management of the Council and its
various entities.
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Dependency Matrix:
To deliver its mandate, JPC works hand in hand with the following Departments/MOEs:
Department/MOE Dependency - assisting JPC in the managing and
developing of Council-owned properties by
Property Development and value
creation
1. Department of Planning and
Urban Management
2. Transportation Department /
Johannesburg Roads Agency
(JRA)/ City Power/Joburg
Water
3. Environment Department
o Rezoning and subdivision of property
o Timeous approval of building plans
o Timeous approval of outdoor advertising in terms of by
laws
o Timeous establishment of townships
o Implementation of the Land Strategy
o Completion of Geographical Information System (GIS) and
Land Information System (LIS)
o Avail bulk services
o Timeous connection of bulk infrastructure to property
developments
o Timeous assessments of environmental management
plans and impact assessments
Land Requirements
1. All CoJ departments and MOEs
o Ensuring compliance of Sec 14(2) of the MFMA by
obtaining comments from departments and MOEs prior to
leasing or alienating properties
o Support land and property requirements from departments
and MOEs to ensure successful completion of asset
management plans.
o Ensuring that strategic land parcels are alienated or leased
in line with the Supply Chain Management policy for land
and acquisition is done in terms of the Land Strategy and
Spatial Development Frameworks
o To ensure specialised asset, like parks, will be ring fenced
for MOEs to perform facilities management
o To ensure JPC is provided with all land requirements to
enable the ring fencing of land parcels intended for service
del, social purposed, service del purposes, environmental
needs
Management of the property
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portfolio and revenue generation
1. Revenue Department
2. Group Finance Department
o Issuing timeously release of clearance certificates for
properties which have been alienated.
o Ensure availability of funds for the maintenance of the
asset register in line with good governance
Table 1: IDP Programmes and Delivery Agenda for 2011/12 which reflects only the key
programmes the company will undertake.
5-year IDP Programme Key programme output
Area based economic development
programme
Transfer 1000 properties to beneficiaries as part of the Land
Regularisation initiative - Transfer and allocate properties to
beneficiaries
Increase the economic base of underdeveloped areas, value of
investment secured in marginalised areas and developed areas
Investments leveraged to facilitate improvement
in underdeveloped areas including the South of
Johannesburg and Inner City (including Randburg
Development and decking of railway line )
Beneficiation programme Support Urban Agriculture by the initiation of the Disuse
Land Programme
Emerging Industries support
programme
Tenders to be awarded per year to the emerging
property developers who will be mentored and supported
Acquisition of land for Housing Land acquired for the construction of housing units
Inclusion of Housing requirement in JPC’s mixed use
development
300 properties will be released in land regularization programme
targeted at income group of R7500 and less or as directed by
housing department
JPC has pursued the development of integrated,
mixed use, mixed income developments in the Diepsloot
and Rietvlei Projects where 30% of development will be
reserved for affordable housing.
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5-year IDP Programme Key programme output
Asset management and maintenance
programme
Accomplish 100% verifiable fixed asset register – complete,
accurate and valid asset register
The Land Regularization information component will be
added to the Fixed Asset Register.
Future revenue optimisation
programme
Alternative sources of revenue – utilising the property asset
Implement innovative revenue generation initiatives.
International & domestic positioning
programme
Positioning of JHB as a centre of investment and to attract
international finance and variety of scarce skills in the property
and construction transactions on CoJ land, estimated to yield
R1.0 billion private sector investment.
City marketing and communication
programme
Initiatives and communication focused on key stakeholders
viz. Council, Mayoral, MOEs, CoJ Departments,
General Public, Property Industry, Other spheres of
Government.
Satisfaction level of 75% expected
3. STRATEGIC ANALYSIS
In order to ensure streamlined and focused service delivery, JPC has identified the following six
(6) strategic objectives:
? Support economic development utilising the property portfolio;
? Support community development and social initiatives utilising the property portfolio;
? Utilise the CoJ property portfolio as a vehicle for transformation;
? Ensure efficient, economic, and effective service delivery to JPC’s clients, customers and
stakeholders and
? Ensure a professionally managed and sustainable company.
The company’s strategic objectives are closely linked to the following Mayoral priorities:
? Economic growth and job creation ;
? Health and Community development;
? Housing and Safety;
? Safe clean and green environment and
? Well governed and managed city
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The property environment, within which JPC operates, is adversely affected by regulatory and
global economic market conditions, some of which are:
? Introduction of the Municipal Asset Transfer Regulations, 2008 which regulates the transfer
and permanent disposal of non-exempted capital assets by municipalities and municipal
entities in order to facilitate the enforcement and administration of section 14 (2) of the
Municipal Finance Management Act 56 of 2003, which is to attain a council resolution
before the alienation of any council owned properties. These regulations hinder the process
of the City in the alienation of land because of time delays caused by compliance.
? The property portfolio is adversely affected by downturns in the global market.
Past performance on key areas
1. JPC, has in the past electoral term, continued to play an important role in the fulfilment of
the City's vision through its property activities and related services. From the beginning of
the electoral term, JPC has succeeded to position and manage the property holdings of the
Council as a strategic and a valuable resource, which provides economic and financial
returns as well as social benefits in line with the CoJ’s priorities.
2. JPC, over the past 5 years, has leveraged private sector investments in excess of
R8bn.
3. The company has devolved an estimated 7,000 properties to support the Housing Master
Plan.
3. JPC raised alternative revenue to the value of R114m using the Outdoor Advertising portfolio
4. JPC recovered 33 properties valued at R200m that were fraudulently transferred,
resulting in the company receiving positive media coverage for the City thereby maintaining
the City’s asset register.
5. JPC has demolished a significant number of illegal properties.
6. JPC has over the past years created over 1000 jobs utilising the property portfolio
7. Secured investments in marginalised areas to increase the economic base of the
underdeveloped areas to the value of R1b in areas such as Orlando, Newtown, Land
Regularisation programme, Jabulani and Kliptown
8. Ensured the completion of facilitation of:
- Bruma development
- Randburg
- Newtown
-Soweto Theatre
9. Completed the following developments:
- Pan Africa Mall
- Fairlands
- Soweto Hospice
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- Heroes bridge
- University of Johannesburg campus upgrade
- Orlando Towers
- JoshCo Hostel conversion
- Dale Lace Village
- Mofolo North residential development
- Worldware Shopping Centre
- FNB Westbank HO
- Pan African Shopping Centre
- Melrose Crossing
9. Surveyed the whole of Soweto for the Land Regularisation programme
10. Created 8000 jobs
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5-Year Strategic Objective IDP Programme Progress during the electoral term
(2005/06-2010/11)
Improve the profile of Johannesburg, both
on the continent and internationally, as a
core centre of finance, business and trade.
International & Domestic Positioning Programme
In a bid to leverage private sector investment,
the target for the 5 years was set at R1 billion
per year, however the company raised R8
billion for the past 5 years.
Increased number of beneficiaries reached
by City-facilitated skills development
programme and job creation.
Skills Development Programme
8,000 jobs have been created in the property
construction industry over the past five years.
Increase the economic base of
underdeveloped areas of the City.
Areas based Economic Development Programme
Total investment of R1.5 billion has been
leveraged.
Increase the City’s spend to specific
targeted firms owned by specific categories
of HDI (BEE, women, youth, etc)
BEE support programme
Throughout the years, JPC has exceeded the
60% (Capex & Opex) mark in supporting
BBBEE.
Increase budget spend on NGOs and CBOs
targeting programmes at vulnerable and
poor households. 100% of NGOs and CBOs
have institutional and financial capacity to
carry out their work in support of the poor
and vulnerable by 2015
NGO/CBO Support Programme
JPC plans to continue supporting NGOs’ &
programmes that support the poor and
vulnerable in terms of leases.
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5-Year Strategic Objective IDP Programme Progress during the electoral term
(2005/06-2010/11)
Improved accessibility to sports and
recreation facilities and programmes, both in
terms of distribution across the City and
average operating hours
Sports and development programme
One of the Mayoral priorities is to “Support
community development and social
initiatives”. JPC has embarked on various
projects like Soweto Theatre and Soweto
Hospice. Nike Sports Centre in Pimville has
also leased out leases for social purposes.
Through both the City’s own means, and in
partnership with other actors and
stakeholders, deliver 100 000 well-located
and good quality housing units over the next
five years, which includes the delivery of 15
000 rental housing units, 30 000 housing
units through Community Builder
Programme and 50 000 mixed income
housing units.
Acquisition of land for Housing
Various land parcels have been purchased
and/or made available for the construction of
housing units. The company acquired farms in
Doornkop and Zandspruit – this equates to
5800 housing units.
Address the housing ladder gap by
facilitating private sector delivery of
affordable rental and home ownership
Housing ladder gaps delivery programme.
In a bid to further support economic
development on Council-owned land, JPC has
leverage 3000 affordable housing units in all
residential developments of COJ land.
Introduce the Sustainable Human
Settlements approach to all new housing
developments
Sustainable Human Settlements Programmes
(Housing component)
Pursued the development of integrated, mixed
use, mixed income developments in different
areas
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5-Year Strategic Objective IDP Programme Progress during the electoral term
(2005/06-2010/11)
Improved understanding of future revenue
risks and opportunities
Future revenue optimisation programme.
The company will continue to embark on
investigating alternative sources of revenue
which can be generated from the property
asset
100% of CoJ Compliance with all relevant
legislation
Legal support and compliance programme
Compliance Register was formulated and
reported to the SHU on a quarterly basis.
Achieve clean audit Internal audit development programme
For the past 5 years the company has
achieved unqualified audit reports from the
AG.
A record of active mutually beneficial,
interactions with selected sister cities
Sister City and international relations programme,
Protocol development programme.
JPC obtained membership of the South
African Property Owners Association and has
participated in international property seminars
and expos e.g. MIPIM, EXPO REAL, FEPE
and SAPOA
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Key programmes proposed to continue
5-year IDP Programme Key programme output
Area based economic development programme Transfer 1000 properties to beneficiaries as part of the Land Regularisation initiative - Transfer
and allocate properties to beneficiaries
Increase the economic base of underdeveloped areas, value of investment secured in
marginalised areas and developed areas
Investments leveraged to facilitate improvement
in underdeveloped areas including the South of
Johannesburg and Inner City (including Randburg
Development and decking of railway line )
Beneficiation programme Support Urban Agriculture by the initiation of the Disuse
Land Programme
Emerging Industries support programme Tenders to be awarded per year to the emerging
property developers who will be mentored and supported
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5-year IDP Programme Key programme output
Acquisition of land for Housing Land acquired for the construction of housing units
Inclusion of Housing requirement in JPC’s mixed use development
300 properties will be released in land regularization programme targeted at income group of
R7500 and less or as directed by housing department
JPC has pursued the development of integrated,
mixed use, mixed income developments in the Diepsloot
and Rietvlei Projects where 30% of development will be
reserved for affordable housing.
Asset management and maintenance programme Accomplish 100% verifiable fixed asset register – complete, accurate and valid asset register
The Land Regularization information component will be
added to the Fixed Asset Register.
Future revenue optimisation programme Alternative sources of revenue – utilising the property asset
Implement innovative revenue generation initiatives.
International & domestic positioning programme Positioning of JHB as a centre of investment and to attract international finance and variety of
scarce skills in the property and construction transactions on CoJ land, estimated to yield R1.0
billion private sector investment.
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5-year IDP Programme Key programme output
City marketing and communication programme Initiatives and communication focused on key stakeholders
viz. Council, Mayoral, MOEs, CoJ Departments,
General Public, Property Industry, Other spheres of
Government.
Satisfaction level of 75% expected
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SWOT analysis
The company is currently in the process of finalising the turnaround strategy which will improve
operational efficiencies and revenue streams. Highlighted below are the SWOT elements that
would have an impact on the effective implementation of the turnaround strategy.
Internal Strengths Weakness
? Usable space of 17 000 hectares
worth approximately R2bn
? Ability to expropriate property
? Extensive Experience in property
management, development, asset
management and facilities
? Island of excellent in property
management
? Ability to use the strength of property
to leverage investment
? Access to key stakeholders and
decision makers
? JPC is the sole agent of the CoJ with
a mandate to manage Council owned
properties on behalf of the City in
terms of the 25 year SDA with the
City
? Solid understanding of legislation and
ability/commitment to work within in.
? Inadequate HR capability
? Lack of appropriate skills
? Inadequate funding
? Lack of centralised Property
MIS
? Outdated IT infrastructure
? Cumbersome internal land
transfer processes
? Inability to maintain the
property portfolio due to
JPC’s limited mandate
regarding security and
facility management
services.
? Overlaps with City
Departments/MOEs.
? Dependency with City
departments /MOEs
resulting in delays in
implementation of property
strategies.
External Opportunities Threats
? Maximise revenue through the outdoor
advertising portfolio – e.g. through
identification of new sites without
polluting the City
? Increase the value of the property
portfolio by purchasing strategic land for
land banking
? International investment: investigating
alternative sources of revenue which can
be generated from the property asset.
? Optimise revenue from commercial
portion of property portfolio.
? Vandalism to property
portfolio
? Land invasions
? Illegal occupation of land
parcels
? Fraudulent land sales
? Encroachment on JPC’s
mandate by other MOEs
? Cumbersome CoJ’s land
approval processes for land
transactions
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4. STRATEGIC FOCUS AREA
4.1. Analysis of our business against GDS principles and City Indicators
4.1.1. Strategy Alignment / City Indicators
GDS principle 5-Year
strategic
objective – per
business plan
Describe JPC’s
strategic objectives
alignment to GDS –
per business plan
Alignment to
six themes
identified in
the
turnaround
strategy
Alignment to
the six
segments
identified in the
turnaround
strategy
Proactive
absorption of
the poor
Facilitated
social mobility
? Support
Housing
Master Plan
and
delivery
utilising the
CoJ
property
portfolio
? JPC supports the
Housing Master
Plan through the
finalization of the
acquisition of
properties on behalf
of CoJ Housing and
the Provincial
Department of
Housing for the
development of
social housing
? Achieves
social
purpose
? Allows for
participation
across
property
value chain
? Service
delivery
? Social
? Future needs
Innovative
governance
? Support
economic
developme
nt utilising
the CoJ’s
property
portfolio
? Ensure
financial
sustainabilit
y
? JPC, through its
property
management and
development
activities, actively
generates private
sector investment in
the CoJ and long-
term financial
sustainability for the
CoJ; targeting R1B
property
development and
construction
investment by the
private sector in
2009/10 financial
year
? Through the active
management of the
CoJ’s property
portfolio, JPC
enhances long-term
lease revenue
generation and
enhances the value
? Leads the
property
sector
? Achieves
operational
excellence
? Attracts and
retains great
people
? Participates
across the
property
value chain
? Ensures
financial
sustainability
for the City
and itself
? Achieves its
social
purpose
? Disposal of
non strategic
assets
? Economic
? Future needs
? Open land
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GDS principle 5-Year
strategic
objective – per
business plan
Describe JPC’s
strategic objectives
alignment to GDS –
per business plan
Alignment to
six themes
identified in
the
turnaround
strategy
Alignment to
the six
segments
identified in the
turnaround
strategy
of the CoJ’s
property assets
Balanced and
shared growth
Settlement
restructuring
Proactive
absorption of
the poor
Facilitated
social mobility
Innovative
governance
solutions
? Support
economic
developme
nt utilising
the CoJ’s
property
portfolio
? Support
community
developme
nt utilising
the CoJ’s
property
portfolio
? Support the
Housing
Master Plan
and
delivery
utilising the
CoJ
property
portfolio
? Support
environmen
tal
programme
s and
Initiatives in
the
manageme
nt of the
CoJ’s
property
portfolio
? JPC aims to award
75% of the CoJ’s
property portfolio
and the company’s
CAPEX to BBBEE
projects
? JPC actively
supports and
promotes socio-
economic
transformation both
within the company
and through
property
management and
development
activities
? All of JPC’s
property
development
initiatives address
the need for
sustainable human
settlements. As
such, all
developments are
based on sound
principles for
effective integration
of communities and
promote access to
appropriate facilities
and employment
opportunities (mixed
use developments),
e.g. the Land
Regularization
Programme,
Orlando Ekhaya,
etc.
? Achieves its
social
purpose
? Achieves
operational
excellence
? Attracts and
retains great
people
? Participates
across the
property
value chain
? Ensures
financial
sustainability
for the City
and itself
? Service
Delivery
? Social
? Economic
? Future needs
? Non strategic
? Open land
Sustainability
and
environmental
? Establish
land
strategy,
? JPC aims to ensure
the quality of life of
all communities by
? Achieves its
social
purpose
? Service
Delivery
? Social
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GDS principle 5-Year
strategic
objective – per
business plan
Describe JPC’s
strategic objectives
alignment to GDS –
per business plan
Alignment to
six themes
identified in
the
turnaround
strategy
Alignment to
the six
segments
identified in the
turnaround
strategy
justice
land
acquisition
and land
stewardship
in line with
CoJ’s
priorities
incorporating green
infrastructure into
developments on
council-owned land,
e.g. Huddle Park
and Rietvlei Zoo
Farm developments
? JPC also brings
green infrastructure
to historically ‘grey’
townships with
developments such
as Orlando Ekhaya
and the Pimville
Golf Course
? JPC has also
formulated the
Disused Land
Programme which
looks at interim and
effective utilisation
and management of
vacant land
throughout CoJ, for
agriculture,
landscaping and
environmental
management
? Achieves
operational
excellence
? Attracts and
retains great
people
? Participates
across the
property
value chain
? Ensures
financial
sustainability
for the City
and itself
? Achieves its
social
purpose
? Economic
? Future needs
? Non strategic
? Open land
Innovative
governance
solutions
Settlement
restructuring
Balanced and
shared growth
Sustainability
and
environmental
justice
? Support
community
developme
nt utilising
the CoJ’s
property
portfolio
? Support
environmen
tal
programme
s and
Initiatives in
the
manageme
nt of the
CoJ’s
? JPC has an
effective customer
relationship
management
system that
includes an
information desk,
client service centre
and stakeholder
management unit
? JPC has also
entered into
discussions with
community leaders,
action groups and
ward councillors
with regard to
? Achieves its
social
purpose
? Achieves
operational
excellence
? Attracts and
retains great
people
? Participates
across the
property
value chain
? Ensures
financial
sustainability
for the City
? Service
Delivery
? Social
? Economic
? Future needs
? Non strategic
? Open land
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GDS principle 5-Year
strategic
objective – per
business plan
Describe JPC’s
strategic objectives
alignment to GDS –
per business plan
Alignment to
six themes
identified in
the
turnaround
strategy
Alignment to
the six
segments
identified in the
turnaround
strategy
property
portfolio
? Establish
land
strategy,
land
acquisition
and land
stewardship
in line with
CoJ’s
priorities
proposed
development on
council-owned
properties
? JPC provided
property related
support services for
other spheres of
government through
its participation in
the Gautrain
property related
activities and the
provision of social
housing
and itself
? Achieves its
social
purpose
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Table 2: Operational Plan 2011/12
5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
Sector
diversification
through
support for
emerging and
new sectors
and retention
of competitive
economic
sectors
Encouraging
and supporting
Leveraging
and
Facilitating of
the creation of
jobs in
property
portfolio
projects on
Council
owned land
New
Indicator
1. Pota
to Sheds &
Majestic
(Newtown)
1
2
R1.12
5M
(200
jobs)
R4,5
million
Site Clearance
and piling
(Potato Sheds)
Demolitions
(Majestic)
20 jobs
R280 000 Foundations
(Potato
Sheds)
Start
Tenant
Launch
(Majestic)
30 jobs
R280 000 Start construction
of top structure
Tenanting
(Majestic)
50 jobs
R280 000 Construction
15% complete
Site
preparation
(Majestic)
100 jobs
R280 000
New
Indicator
2. Jabulani
CBD Project
R1.16
M
R3,5
million
Theatre 75%
complete
R292 000 Theatre
100%
R292 000 Theatre opening
R292 000 Phase 1B (300
units)
R292 000
1
Jobs are based on construction work based on 4 jobs per million
2
Figures should be looked at cumulative year on year
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
the creation of
sustainable
work
opportunities
(Mixed-use
Development
3
&
4
(500
jobs)
Phase 1A
Residential
units(300)
superstructure
50 jobs
complete
Phase 1A
Residential
units (300)
complete
100 jobs
Phase 1B
Residential units
(300)
superstructure
Retail
development
construction
started
100 jobs
completed
Retail
development
15% complete
250 jobs
3
Jobs are based on construction work based on 4 jobs per million
4
Figures should be looked at cumulative year on year
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
New
Indicator
3. Orlando
Ekhaya
Project
(Housing and
Retail)
5
&
6
R1.16
M
(100
jobs)
R3,5
million
Start
Construction of
Katavi
Residences
20 jobs
R292 000 Katavi
Residences
10%
complete
Start
construction
of Phase 1
Retail ( Mall
of Soweto)
20 jobs
R292 000 Katavi
Residences 20%
complete
Phase 1 retail
scheme 10%
complete
30 jobs
R292 000 Katavi
Residences
40% complete
Phase 1 retail
20% complete
30 jobs
R292 000
New
Indicator
4. Kgoro
(Sandton
R1.2M R6 million Finalisation of
responsibility
R300 000 Submission
of sect 46
R300 000 Attending to
requirements for
R300 000 SDP approved R300 000
5
Jobs are based on construction work based on 4 jobs per million
6
Figures should be looked at cumulative year on year
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
Integrated
Development)
Project
7
&
8
&
9
0 jobs matrix and
management
rules
Line shop
handover
application
and SDP
bulk services and
finalising MOU
Site Clearance
and piling
(Potato Sheds)
Demolitions
(Majestic)
R250 000 Foundations
(Potato
Sheds)
Start
Tenant
Launch
R250 000 Start construction
of top structure
Tenanting
(Majestic)
R250 000 Construction
15% complete
Site
preparation
R250 000
7
High technology development, therefore less jobs created. This is a high-rise development.
8
Figures should be looked at cumulative year on year
9
This project is anticipated more than five (5) years. The balance will accrue in the following 5 years
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
R5 Million
investment
(Majestic)
R10M
investment
R15M investment
(Majestic)
R20M
investment
Asset
Management
and
maintenance
programme
New
Indicator
Perform
highest and
best use on
developable
land owned by
CoJ -
Government
Precinct-
Commercial
Offices
R4 million Conduct highest
and best use
study (20 x
10,000 per
highest and
best use report)
R200,000 Conduct
highest and
best use
study (20 x
10,000 per
highest and
best use
report)
R200,000 Conduct highest
and best use
study (20 x
10,000 per
highest and best
use report)
R200,000 Conduct
highest and
best use study
(20 x 10,000
per highest
and best use
report)
R200,000
Asset
Management
and
New
Indicator
Physical
verification of
entire property
R18,5m Physical
verification of
1500 improved
R4,125,00
0
Physical
verification
of 1500
R4,125,000 Physical
verification of
1500 improved
R4,125,000 Physical
verification of
1500 improved
R4,125,000
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
maintenance
Programme
holdings
owned by
CoJ.
properties and
vacant land we
know of:
Condition of
assessment of
properties.(Exp
ense).Generate
savings targets
Generate
revenue -
Income
statement per
property.
improved
properties
and vacant
land we
know of:
Condition of
assessment
of
properties.(
Expense).G
enerate
savings
targets
Generate
revenue -
Income
properties and
vacant land we
know of:
Condition of
assessment of
properties.(Expen
se).Generate
savings targets
Generate revenue
-Income
statement per
property.
properties and
vacant land we
know of:
Condition of
assessment of
properties.(Exp
ense).Generate
savings targets
Generate
revenue -
Income
statement per
property.
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
statement
per
property.
Promoting
Joburg as a
business and
leisure tourism
destination,
including
positioning
Joburg as a
sort after head
office location
for
international
companies.
International &
Domestic
Positioning
Programme
New
indicator
R5milli
on
R25million
Draft event-
plan, source
venue, service
providers and
sponsors
R500 000 Approval of
event-plan,
establish
event’s
planning
committee,
confirm
venue,
service
providers &
sponsors
R500 000 Procure and
reserve venue
and other
logistics,
international and
local sponsors
from the property
market
R2 million Marketing and
communication
s plan, set-up
dedicated
website,
marketing
campaign,
publication,
promotions
R2 million
City
marketing
and
communica
New
Indicator
R1MIL R5MIL Project plan and
source service
provider(s),
R50 000 Establish
co-
ordinating
committee
R50 000 Brand ten land-
parcels, five
buildings and one
R450 000
Brand twenty
land parcels,
ten buildings
and two
R450 000
brand
twenty land
parcels, ten
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
Promoting
trade and
investment,
with emphasis
on fixed direct
investment by
anchoring
Joburg as a
centre of
finance,
business and
trade
tion
programme
and approve
site-projects
construction site
construction
sites.
buildings
and two
constructio
n sites.
Revenue
Maximisation
programme
New
Indicator
1.Utilising
Outdoor
Advertising
Portfolio to
promote
investment in
COJ,
particular PD
areas
R650k R650k Finalise the City’s
fundraising
initiative with the
remaining outdoor
advertising
players and
embark on
“outdoor
advertising
operation cleanup
R300k Finalise the
clean-up
exercise
R350k Planning and
identification of
new outdoor sites
– advertising
precinct
Nil Planning and
identification of
new outdoor
sites –
advertising
precinct
Nil
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
Leveraging of
private sector
investment in
property
portfolio
projects.
New
Indicator
1.Potato
Sheds &
Majestic
(Newtown) &
R1Milli
on
(R50
million
invest
ment
target)
R3 million
New
Indicator
2. Jabulani
CBD Project
(Mixed-use
Development
10
R1M
(R90
million
invest
ment
target)
R3 million Theatre 75%
complete
Phase 1A
Residential
units(300)
superstructure
R250 000 Theatre
100%
complete
Phase 1A
Residential
units (300)
R250 000 Theatre opening
Phase 1B
Residential units
(300)
superstructure
Retail
R250 000 Phase 1B (300
units)
completed
Retail
development
15% complete
R250 000
10
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
R20m
Investment
complete
R30m
Investment
development
construction
started
R20m Investment
R20m
investment
New
Indicator
3. Orlando
Ekhaya
Project
(Housing and
Retail)
11
R1M
(R50
million
invest
ment
target)
R3 million Start
Construction of
Katavi
Residences
R0M investment
R250 000 Katavi
Residences
10%
complete
Start
construction
of Phase 1
Retail ( Mall
R250 000 Katavi
Residences 20%
complete
Phase 1 retail
scheme 10%
complete
R250 000 Katavi
Residences
40% complete
Phase 1 retail
20% complete
R250 000
11
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
of Soweto)
R15M
investment
R15M investment
R20M
investment
New
Indicator
4. Kgoro
(Sandton
Integrated
Development)
Project
12
&
13
&
14
R1.2M
(R25
million
invest
ment)
R6 million Finalisation of
responsibility
matrix and
management
rules
Line shop
handover
R300 000 Submission
of sect 46
application
and SDP
R300 000 Attending to
requirements for
bulk services and
finalising MOU
R300 000 SDP approved R300 000
12
High technology development, therefore less jobs created. This is a high-rise development.
13
Figures should be looked at cumulative year on year
14
This project is anticipated more than five (5) years. The balance will accrue in the following 5 years
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
Facilitating
enterprise
development
and support
through
capacity
development,
strategic
procurements
and access to
finance for
small, micro
and medium
enterprises
(SMMEs),
including
cooperatives
Emerging
industries
support
programme
New
Indicator
Develop and
Roll-out a
Property
Incubator
Programme
R1,5
million
R6 million Conduct
Research
R0,5
million
Draft
Strategy
Document
R0,2 million Conduct
Workshops &
obtain Board
Approval
R0,3 million Obtain Council
Approval &
Launch
R0,5 million
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
Encouraging
and supporting
the creation of
sustainable
work
opportunities
Implementatio
n of skills
development
and re-skilling
programmes
that are linked
to the needs of
the market
Skills
development
programme
New
Indicator
Develop and
Roll-out a
Property Skills
Programme
R1,5
million
R16,5
million
Conduct
Research &
Establish
Partnerships
R0,5
million
Draft
Strategy
Document
R0,2 million
Conduct
Workshops &
obtain Board &
Council Approval
R0,2 million Conclude
Partnership
Agreements /
MOU & Launch
R0,6 million
Championing
spatial
economic
restructuring
Area based
economic
development
programme
New
Indicator
1. Soweto
Land
Regularisation
R7
million
R27
million
Q1 - 5%
Allocation of all
occupied and
verified Council
owned
properties (100
R1,75
million
Q2 - 5%
Allocation of
all occupied
and verified
Council
owned
R1,75
million
Q3 - 5%
Allocation of all
occupied and
verified Council
owned properties
R1,75
million
Q4 - 5%
Allocation of
all occupied
and verified
Council
R1,75
million
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
for grown and
marginal
areas.
Project
properties) properties
(100
properties)
(100 properties) owned
properties
(100
properties)
New
Indicator
2. Audit of
vacant non
residential
stands
properties to
put out on
public tender
R5
million
R20
million
100%
completion of
audit (150
properties)
R2,5
million
Public
Tender for
audited
properties
R1 million
Evaluation of
tender
R1 million
Adjudication
and Award
R0,5 million
New
Indicator
Perform
highest and
best use on
developable
land owned by
R2 million Conduct highest
and best use
study for
industrial
development
R100,000 Conduct
highest and
best use
study for
industrial
R100,000 Conduct highest
and best use
study for industrial
development
zones (10 x
R100,000 Conduct
highest and
best use study
for industrial
development
R100,000
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
CoJ -
Industrial
Development
Zone.
zones (10 x
10,000 per
highest and
best use report)
developmen
t zones (10
x 10,000 per
highest and
best use
report)
10,000 per
highest and best
use report)
zones (10 x
10,000 per
highest and
best use
report)
Socio-
economic
development
programme
Implementatio
n of the
turnaround
strategy
15 %
Implementation
after the
approval
35%
implementat
ion
25%
implementation
25%
implementation
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4.1 The Turnaround Strategy
4.1.1 Background
Having been in existence for ten years, it was decided during the February 2010 strategy
session that JPC needed to develop a turnaround strategy positioning the organisation for
growth over the short, medium and longer term. Items listed for investigation were, inter alia:
? Reviewing the current business model and mandate and ascertaining whether the current
model is still applicable after the evolution of the company over the past 10 years;
? Identifying overlaps and integration with the other CoJ departments and MOEs;
? Asset Management sweating the asset to achieve greater commercial returns, without
losing the social focus;
? Investigating whether the company can take a stake and participate in property
developments; and
? Developing a financial turnaround strategy to ensure financial independence and future
sustainability.
As a result, a three phase turnaround strategy development process was kicked off in July
2010:
? Phase 1: Fact base development;
? Phase 2: Short-to-medium term strategy development; identification of quick wins and
priority organisational strengthening activities; and
? Phase 3: Long term strategy development; short-to-medium term strategy implementation.
4.1.2. Strategy overview
The turnaround strategy will ultimately enable JPC to maximise the returns of the portfolio, both
economic (capital and income growth) and social. To achieve this, JPC needs to be able to
effectively deliver on a more extensive mandate from the City.
In line with best practice, management will focus first on strengthening weak areas in the
organisation and achieving quick wins (short-to-medium term strategy), before committing to a
larger mandate (long term strategy), i.e. follow a 2 stage turnaround strategy.
4.1.3. Short-to-medium term strategy
The short-to-medium term strategy will focus on strengthening core business activities through
several initiatives:
? Clarify the high level mandate;
? Clearly define the core business;
? Align and enhance the revenue model;
[The above three initiatives will require the renegotiation of the service delivery agreement
with CoJ]
? Drive quick win revenue initiatives;
? Develop the portfolio strategy;
? Strengthen the operating model; and
? Focus on effective implementation.
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4.1.4 Clarify the high level mandate
JPC’s mandate from CoJ has to balance both social and economic goals, however, to date; the
focus of the mandate has been swayed towards financial/economic goals.
Historically, the property portfolio has made a relatively insignificant financial contribution to
CoJ. Moreover, even if CoJ property portfolio returns could match private sector benchmarks
the portfolio would be unlikely to make a significant relative financial contribution to the City.
However, the social goals of the City are highly dependent on the City’s property portfolio.
JPC’s long term aspiration going forward should thus be grounded in unlocking the socio-
economic potential of the property portfolio for the benefit of the City’s residents; this must
outweigh the purely financial objectives that have been emphasised over the elapsed medium
term.
4.1.5 Clearly define the core business
Over the short-to-medium term, JPC will focus on its three current core business services:
? Asset management;
? Property management; and
? Property development.
Within each of these three areas, the core business services has been tightly defined, and
sufficient scope has been given to expand into adjacent areas over time.
A number of property service/mandate overlaps currently exist within the City structures,
particularly with regards to Dept. Corporate Support and Shared Services, Dept. Housing,
JOSHCO and JDA. Specialist function - MOEs also perform various property related activities.
JPC utilised business definition analysis to clarify which assets should fall under JPC’s
management, as well as the proposed treatment of “grey areas”.
JPC’s core business is depicted against several descriptive axes in the figure below.
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Combining all service delineators on a single diagram for JPC reveals
a well defined and defensible core business, plus significant scope to
expand into adjacencies over the longer term
Property development
Land type
Property management
Customer
(portfolio owner)
Geography
Asset management
Manage development (construction phase)
Plan development (e.g. source contractors)
Raising of site preparation capital
Site preparation
Project identification
Site i.d.
Provincial government
Private sector
CoJ
Agricultural
Vacant
Industrial
Heritage
Social
Roads and parks
Commercial
Johannesburg
South Africa
SADC
Africa
Gauteng
Asset management plans
Valuations
Research
Fixed asset register
Portfolio
strategy
JPC
Leasing, acquisitions, sales transactions
Maintenance management
Site visits
Property administration
Management of servitudes, encroachments, etc.
Facilities management
FM services
Raising of development capital
Extended mandate
Core business
Other municipalities
Power and water
Residential
Environmental
Performance monitoring
Play role of developer (construction phase)
4.1.6 Align and enhance the revenue model
The current revenue model, initiated through the original Service Delivery Agreement with CoJ,
does not ensure alignment of interest between CoJ and JPC. As a result, JPC has been
incentivised to focus on income generating assets only, thereby neglecting the City’s non-
income generating assets.
JPC has proposed a revised future revenue model which will better align interests and provide
for industry acceptable sources of revenue. Nine revenue streams have been identified which,
at a high level, fall into three categories of revenue:
? CoJ fee for assets under management;
? CoJ commissions on revenue generating portfolio activities; and
? Third party fees and commissions.
4.1.7 Drive quick win revenue initiatives
The following quick win revenue initiatives have been identified by JPC:
? Finalising historical transactions; and
? Enhancing revenue from outdoor advertising and cell masts.
4.1.8 Develop the portfolio strategy
JPC is in the process of developing the property portfolio strategy. This involves conducting a
land audit, portfolio segmentation, true revenue/cost allocation analysis and segmental strategy
development.
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Preliminary analysis has been conducted on JPC’s current asset register, enabling a draft
segmentation, revenue/cost allocation and strategy development process to be conducted.
However, the fundamental enabler of the portfolio strategy is the information that will be
obtained about each asset through the completion of the land audit. Once this is available, the
portfolio strategy can be concluded.
Six preliminary segments have been identified within the portfolio, each consisting of a number
of similar assets and having a unique set of strategic priorities:
? Open land assets
? Service delivery assets
? Social assets
? Economic assets
? Future needs assets
? Non-strategic assets
4.1.9 Strengthen the operating model
The two areas within the operating model that most require strengthening are the organisation
design (and related human capacity) and core process efficiency.
At a high level, JPC’s future organisation design will have 3 core business units and 4 support
functions. Sub-functions within these units have been redesigned to deliver more effectively on
JPC’s mandate. This redesign requires a headcount increase from 135 to 154.
36 processes (16 of which relate to core business processes) have been identified for
clarification and potential redesign during the turnaround strategy implementation phase. This is
expected to improve turnaround times and general efficiencies.
4.1.10 Focus on effective implementation
Implementation of the short-to-medium term turnaround strategy involves a number of carefully
planned initiatives. These initiatives have been mapped out onto a high level road map, as well
as more granular action plans, detailing initiative responsibilities, timelines, key milestones, etc.
Rigorous project management of these plans will ensure effective implementation of the
strategy.
4.2 Long term strategy
The long term strategy will focus on revenue generating activities that are beyond the scope of
the current mandate from CoJ. These initiatives are anticipated to bring the economic
contribution of relevant segments of the property portfolio closer to private sector benchmarks.
Initiatives include:
? Property structure
? Land banking
? Usufruct
? Facilities management
? Property development
JPC has broadly defined the objectives, benefits, constraints, risks and potential revenue
implications for each of these initiatives, and is in the process of developing a set of more
granular business cases.
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5. RISK ASSESSMENT
The table below reflects the top eleven risks of the company.
Table 3: Risks, Mitigating actions
0
Risk
Categor
y
Objectiv
es
Risk
Descriptio
n (what is
likely to
hinder
attainmen
t of the
objective)
Background
to the risk
(root cause)
Impac
t
Likelih
ood
Inher
ent
Risk
Current
controls
(what is
currently
in place
to
mitigate
the risk)
Control
Effective
ness
Resid
ual
risk
Risk
Own
er
Actions to
improve
manageme
nt of the
risk
Action
Owner
Time scale
1 Human
Capital
Attraction
and
retention
of skills
-Lack of HR
strategy
-Ineffective HR
policies
-Salary
disparities
-Mismatch of
skills
-Inadequate
information
dissemination
by HR
Moder
ate
3 Almost
Certain
3 Ambe
r
9 -Approved
and
implement
ed HR
policies
-
Turnaroun
d strategy
-Redesign
of HR
structure
-
Organisati
on
strengthen
ing
initiatives
Good 0.
40
Green 3.
6
MD:
JPC
1. Aligning
with COJ
HR strategy
2.
Continuous
monitoring
compliance
with HR
policies
1-2.
Manager:
HR
Sep-11
2 Financial
Support
economic
developm
ent by
the
creation
of jobs,
training
etc
Inadequat
e financial
resources
-Insufficient
CAPEX and
OPEX budget
-Delayed cash
flow from
private sector
development
partner and
increase in the
Major 4 Possibl
e
5 Red 2
0
-Applied
for
additional
funding
from
external
sources
-New
revenue
Good 0.
40
Amber 8 MD:
JPC
1.
Implement
the revenue
model as
per
turnaround
strategy
2.
Collaborate
1-2. All
GMs
1.
September
2011
2.Ongoing
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utilising
the CoJ's
Property
Portfolio
by
selling,
developin
g and
leasing
the land.
cost of
construction
prices
model in
place
-Revenue
plan in
place
-MIG
funding in
place
-
Internation
al sources
identified
with
Department
s and
external
stakeholder
s
3 External
Environ
ment
Non
conducive
investment
environme
nt
-Unstable
political climate
-Labour laws
-Union laws
-Land
invasions
-Illegal
occupation of
property
-Lack of
investor
incentives
-Restrictive
supply chain
policies/legislati
on
-Poor
perception of
South Africa
Major 5 Possibl
e
3 Red 1
5
-Targeted
release of
erven and
developm
ent
properties
to
emerging
developer
s and
previously
disadvant
aged
individuals
-Constant
engageme
nt with
communiti
es and
other
stakehold
ers
-
Prohibitory
interdicts
-Physical
security
and
fencing
-Ongoing
communic
ation to
stakehold
Good 0.
40
Amber 6 MD:
JPC
1. Ongoing
communicat
ion and
education
about JPC
programs
and
achievemen
ts
2. Package
investment
deals with
incentives
3.
Continuous
release of
erven
1. GM:
Stakehold
er
Managem
ent
2. GMs:
Asset
Managem
ent,
Stakehold
er
Managem
ent and
Legal
1. Ongoing
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ers
-Process
mitigation
of
legislative
restriction
s
4 Process Support
communit
y
developm
ent
utilising
the CoJ's
Property
portfolio
Vandalism
and
inability to
maintain
facilities
-Destruction of
facilities by
vandalisms-
Abuse of social
facilities by
tenants using
them
commercial
purposes-
Unclear roles
and
responsibilities
in relation to
facility
management-
Inadequate
funding for
maintenance-
Inadequate
capacity to
monitor and
control
Major 4 Possibl
e
3 Red 1
2
-Adhoc
site
inspection
of
facilities-
Agreemen
ts with
tenants in
place-
Onsite
security
Poor 0.
90
Red 1
1
MD:
JPC
1. Request
for
additional
funding for
maintenanc
e and
security2.
Tender for
security that
would
include
cleaning at
no
additional
cost3.
Introduce
penalty
clauses for
non-
compliance
4. Evict
tenants5.
Expand
prohibitory
interdicts to
social
properties6.
Turnaround
strategy to
address
new way of
dealing with
1. GM:
Finance2.
GM:
Supply
Chain
Managem
ent3-5.
GM: Legal
1.
December
2011
2.Septembe
r 2011 3-
7 June
2012
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facilities7.
New
structure
introduces
element of
facilities
manageme
nt
5 Financial
Poor
economic
climate
-Downturn in
the property
market
-Downturn in
the financial
markets
-Tenants
unable to make
payments
-Investors
unable to raise
funding
Major 4 Possibl
e
3 Red 1
2
-Tight
monitoring
of
agreement
s
-Signature
of
addendum
s to
improve
economic
viability
and
address
developm
ental
issues
-Stricter
credit
control
policies
and
procedure
s
Good 0.
40
Green 4.
8
MD:
JPC
1. Package
more
institutional
investments
to hedge
the risk
1. All GMs Ongoing
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6 Process Insufficient
facilities to
support
community
developme
nt
objectives
-Inability to
attract
investors to
invest in social
properties
-Insufficient
funds
Moder
ate
3 Possibl
e
3 Ambe
r
9 -
Incorporat
ed social
requireme
nts into
developm
ent
agreement
s with the
private
sector
Good 0.
40
Green 3.
6
MD:
JPC
1. Engage
private
investors
2. Source
donor
funding
3. Engage
ward
counsellors
to identify
community
needs
4. Release
land parcels
for social
and
community
developmen
t
1-4. All
GMs
1-4.
Ongoing
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7 Informati
on
Manage
ment
Establish
land
strategy,
land
acquisitio
n and
land
stewards
hip in line
with
CoJ's
priorities
Incomplete
assets
register
-Property
information is
decentralised
-Lack of
integration of
LIS, Valuation
and Billing
systems
-Lack of
funding and
capacity (e.g.
human)
-Contract with
service
provider has
expired.
Major 4 Possibl
e
4 Red 1
6
-Contract
with
Intersite
on a
month to
month
basis
-A project
definition
and scope
of work
has been
finalised
-
Maintenan
ce of the
current
asset
register
-
Requeste
d budget
for
integration
-Asset
verification
exercise
by
-
Partnershi
p with
CGIS COJ
-LIS is in
place
Fair 0.
75
Red 1
2
MD:
JPC
Integration
and
maintenanc
e of COJ
asset
register
GM: Asset
Managem
ent
1.
September
2011
2.
December
2011
3. March
2012.
4 June
2012
8 Financial Loss of
revenue
-Outstanding
approved
transactions
(lease, sale,
developments,
servitudes)
-Poor internal
processes
Major 4 Possibl
e
2 Ambe
r
8 -Task
team
establishe
d to fast
track
process.
-
Monitoring
of all
Good 0.
40
Green 3.
2
MD:
JPC
1. PIMS to
go live
2. Report
monthly to
EXCO
1. GM:
Asset
Managem
ent
2. GM:
Portfolio
Managem
ent
1.
September
2011
2. Monthly
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transactio
ns to
ensure
they are
finalised
and
income
received.
9 Regulato
ry
Ensure
good
governan
ce and a
professio
nally
managed
company
Litigation -Inadequate
internal control
mechanisms
-Complex
property rights
-Restrictive
legislation
-Delays in
property
transfers and
finalisation of
contracts
Moder
ate
3 Possibl
e
3 Ambe
r
9 -Policies
and
procedure
s in line
with best
practice
-Updates
and
training on
new
legislation
-
Complianc
e
checklists
-Levels of
authority
-Board
charter
-Annual
review of
policies
and
procedure
s
-Quarterly
litigation
reports
-
Monitoring
of case
maker
system
-Targeted
Fair 0.
75
Amber 6.
8
MD:
JPC
1.
Implementa
tion
compliance
register
2. Review
of
delegation
of authority
3.
Prioritisatio
n of
conveyanci
ng and
developmen
t matters
4. Quarterly
reporting on
compliance.
5.Proper
contract
manageme
nt
1-6. GM:
Legal and
Company
Secretary
1.Septembe
r 2011
2.December
2011
3.June2012
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training
workshops
on policies
and
legislation
-
Monitoring
of
complianc
e
-City's
complianc
e register
1
0
Process All
objective
s
Inadequat
e
marketing
of the
company
-No long term
vision to
promote
products and
relevant
communication
to stakeholders
-Lack of
marketing
strategy
-Inadequate
branding
Major 4 Possibl
e
4 Red 1
6
-Ad hoc
marketing
of
products
-Draft
marketing
strategy
Fair 0.
75
Red 1
2
MD:
JPC
1. Increase
and sustain
awareness(
e.g.
regional
road shows)
2.Implemen
tation and
continuous
monitoring
and review
of the
marketing
strategy
1. GM:
Stakehold
er
Managem
ent
Ongoing
1
1
Integrity All
objective
s
Fraud and
corruption
Land invasions,
Illegal
constructions,
Fraudulent
sales, Illegal
occupation of
land parcels,
Breaching of
internal
controls
Major 4 Possibl
e
3 Red 1
2
Approved
fraud
policy,
fraud
hotline,
internal
awarenes
s
workshop Fair
0.
75
Red
1
2
MD:
JPC
1.Investigati
on
2.External
roadshow,fr
aud risk
assessment
and
reporting GM: Legal
September
2011
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6. FINANCIAL IMPACT
6.1 Key Operations by general Cost Category
Operational Expenditure
Table 4: Operational Expenditure
Key Operations Financial Impact – ZAR ‘000
S & W R & M CS GE Other Total
Salaries and wages 59 153
22 020 2 789 83 962
Etc.
Totals 59 153 22 020 2 789 83 962
The above indicates the intercepted expenditure of R 83.9 million for the year ended 30 June 2012. Salaries make up 69% of the total expenditure
budget and remaining refers to general expenses which contain fixed costs such as rental, subscriptions, and lease agreements that JPC had
entered into.
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Key Operations by general Cost Category
2007
/08
2008
/09
2009
/10
Current year 2010/11 Medium Term Revenue and Expenditure Budget
Audi
ted
Audi
ted
Audi
ted
Origi
nal
Bud
get
Adju
sted
Bud
get
Full
Year
Foreca
st
Budget
Year
Variance Estimates Estimate
s
Estimates Estimates
Outc
ome
Outc
ome
Outcome 2011/12 % 2012/13 2013/14 2014/15 2015/16
R
000
R
000
R
000
R
000
R
000
R 000 R 000 R 000 R 000 R 000 R 000
REVENUE
Property rates
Property rates - penalties imposed &
collection charges
Service charges - electricity
revenue
Service charges - water
revenue
Service charges - sanitation
revenue
Service charges - refuse
removal
Service charges - other
Regional Service Levies
Rental of facilities and
equipment
Interest earned - external
investments
253 24 8 7 7 7 8 9.8% 8 9 9 10
Interest earned -
outstanding debtors
1,28
9
1,44
1
2,08
6
Fines
Licenses and permits
Agency services 18,6
83
40,6
87
18,6
64
22,6
38
106,
413
106,413 50,387 -52.6% 41,305 43,049 45,101 47,347
Operating grants &
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subsidies
Other Revenue 5,41
5
14,7
13
68,6
99
115,
614
31,8
39
31,839 39,635 24.5% 53,152 56,002 59,397 62,898
Gain on Disposal of PPE
DIRECT OPERATING
REVENUE
25,6
40
56,8
65
89,4
57
138,
259
138,
259
138,259 90,030 -34.9% 94,465 99,060 104,507 110,255
Internal Transfers
Interest Income (Sweeping
Account)
Interest on Loans (Core)
Internal Recoveries (ME's /
Core)
Internal Recoveries (Core)
Internal Capital Grants
(MIG)
Operating Grants &
Subsidies from (COJ)
11,1
30
10,5
16
537
Total Internal Transfers 11,1
30
10,5
16
537
TOTAL OPERATING
REVENUE
36,7
70
67,3
81
89,9
94
138,
259
138,
259
138,259 90,030 -34.9% 94,465 99,060 104,507 110,255
EXPENDITURE
Employee related costs 26,6
43
31,7
78
37,6
53
75,4
80
76,1
42
76,142 59,153 -22.3% 63,175 66,650 70,316 74,183
Remuneration of Councillors
Debt impairment
Depreciation & asset
impairment
858 1,24
7
1,19
1
1,21
0
1,41
9
1,419 1,500 5.7% 1,584 1,671 1,763 1,860
Repairs and maintenance
Interest Paid : External
Borrowings
247 382 314 370 370 370 391 5.7% 413 436 460 485
Bulk purchases
Contracted services
Grants and subsidies paid –
external
General expenses 10,4
13
16,4
69
16,1
57
22,1
77
20,2
04
20,204 22,020 9.0% 22,770 24,025 25,351 26,750
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Contribution to/from
Provisions
Loss on disposal of PPE 21 385 350
DIRECT OPERATING
EXPENDITURE
38,1
82
50,2
61
55,6
65
99,2
37
98,1
35
98,135 83,064 -15.4% 87,942 92,782 97,890 103,278
Internal Transfers
Interest Expense (Sweeping
Account)
137 1,59
0
1,590 -100.0%
Interest on Shareholders
Loans
395 603 624 362 362 898 148.1% 948 1,000 1,055 1,113
Interest on Mirror Conduit
loans
Internal Charges (ME's /
Core)
850
Internal Charges (Core)
Operating Grants &
Subsidies to ME's
Total Internal Transfers 395 603 761 850 1,95
2
1,952 898 -54.0% 948 1,000 1,055 1,113
TOTAL OPERATING
EXPENDITURE
38,5
77
50,8
64
56,4
26
100,
087
100,
087
100,087 83,962 -16.1% 88,890 93,782 98,945 104,391
OPERATING DEFICIT/
(SURPLUS)
1,80
7
(16,5
17)
(33,5
68)
(38,1
72)
(38,1
72)
(38,172
)
(6,068) -84.1% (5,575) (5,278) (5,562) (5,864)
Transfers Recognised
Capital Grants
Capital Contributions
OPERATING DEFICIT/
(SURPLUS)
1,80
7
(16,5
17)
(33,5
68)
(38,1
72)
(38,1
72)
(38,172
)
(6,068) -84.1% (5,575) (5,278) (5,562) (5,864)
Less Tax (2,09
8)
4,31
0
11,4
84
11,0
70
11,0
70
11,070 1,760 -84.1% 1,617 1,531 1,615 1,704
OPERATING DEFICIT/
(SURPLUS) - after tax
(291) (12,2
07)
(22,0
84)
(27,1
02)
(27,1
02)
(27,102
)
(4,308) -84.1% (3,958) (3,747) (3,947) (4,160)
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The CAPEX allocated to JPC and Portfolio is R2 million (IT software) and R13 million (Site Development – Various properties) respectively.
The list below reflects the core projects and is not necessarily in order of priority.
Table 5: Key programme costing
5 Year Strategic Objectives IDP Programme Delivery Agenda
Total
Programme
Cost
Measured increase in sectoral diversification and growth in sectors
targeted for City Support
Sector Support
Programme
Ensuring 40% BEE participation during the
construction based on the leverage investment
8,117
Increased number of defined beneficiation projects facilitated by
the City
Beneficiation
programme
Support Urban Agriculture by the initiation of the
Disuse Land Programme
4,059
Increase in the rate of formation of new businesses Emerging Industries
support programme
Five tenders to be awarded per year to the
emerging property developers who will be
mentored and supported
4,059
Improve the profile of Johannesburg, both on the continent and
internationally, as a core centre of finance, business and trade
International positioning
programme
Positioning of JHB as a centre of investment and
to attract at least 10% international finance and
variety of scarce skills in the property and
construction transactions on CoJ land, estimated
to yield R1.0 billion private sector investment.
4,059
Increase in the City’s spend to specific targeted firms owned by
specific categories of HDI (BEE, women, youth, etc)
BEE support programme 70% of CAPEX and OPEX to be spent on BEE
firms
4,059
Increased role of co-operatives in the City economy, and increased
number of informal traders in City managed market spaces
‘graduating’ into formal businesses
Informal and community
sector support
programme
Operational support centre for BBBEE, Investor
and Property Information (JPC)
4,059
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Economic base of underdeveloped areas of the City increased
over five years
Areas based economic
development
programme
Investments leveraged to facilitate improvement in
underdeveloped areas including the South of
Johannesburg and Inner City (including Randburg
development and decking of railway line estimated
to be R250m
4,059
Increased number of beneficiaries reached by City-facilitated skills
development initiatives
Skills development
programme
1 trainee per R5 million ie.140 trainees for
R700million
1,623
Increase the spending on NGOs and CBOs targeting programmes
at vulnerable and poor households. 100% of NGOs and CBOs
have institutional and financial capacity to carry out their work in
support of the poor and vulnerable by 2015
NGO/CBO Support
Programme
The transactions relating to property related
transactions will be facilitated by JPC for the
NGOs and CBOs on behalf of the COJ.
4,059
Improved accessibility to sports and recreation facilities and
programmes, both in terms of distribution across the City and in
terms of average operating hours
sports and recreation
facilities and programme
The JPC will facilitate the awarding of all lease
agreements relating to sports and recreational
clubs on behalf of the COJ. The JPC would also
secure and maintain the facilities during the time
when such facilities are not leased.
1,623
Through both the City's own means, and in partnership with other
actors and stakeholders, deliver well-located and good quality
housing units over the next five years, which includes the delivery
rental housing units, housing units through Community Builder
Programme and mixed income housing units. Address the housing
ladder gap by facilitating private sector delivery of affordable rental
and home ownership
Housing programme
Acquisition of land for
Housing & Housing
ladder gaps programme
The JPC would acquire and make available land to
Housing Department for the development of
residential housing. JPC would also through its
property development programmes deliver low
cost housing.
8,118
Introduce the Sustainable Human Settlements approach to all new
housing developments
Sustainable Human
Settlements
Programmes (Housing
component)
4,059
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Establishment of a network of open spaces that contribute to social
and environmental opportunities
Metropolitan open space
system implementation
programme
Various projects with a high green footprint are
underway and they include: Orlando eKhaya, dam
and wetlands; Huddlepark; Pimville Golf Course
and Rietvlei Farm, Florida Lake and River park. To
achieve this in some areas the COJ exchanged
valuable land for low financial value environmental
projects
4,059
Development of an integrated asset management plan and system Asset management and
maintenance
programme
A Fixed Asset Register with 100% level of
completeness and accuracy has been compiled.
The Land Regularization information component
will be added to the Fixed Asset Register.
4,059
Improved understanding of future revenue risks and opportunities Future revenue
optimisation programme.
8,117
100% of CoJ Compliance with all relevant legislation Legal support and
compliance programme
Development of a land/property acquisition,
land/property management and utilization and
land/property disposal policy; in line with the
Government wide Immovable Asset Management
Act.
4,059
Achieve clean audit Financial Management
programme
? Management of control environment to
ensure maintenance
of a clean audit;
? Implement programmes that ensure
compliance with applicable standards
? 100 % Clean audit report
4,059
Timeous, relevant information dissemination to stakeholders City marketing and
communication
programme
Initiatives and communication focused on key
stakeholder viz. Council, Mayoral, MOEs, CoJ
Departments, General Public, Property Industry,
Other spheres of government. Satisfaction level of
75% expected
2,435
A record of active mutually beneficial, interactions with selected
sister cities
Sister City and
international relations
programme, Protocol
development
programme.
Formation of public sector property/ real estate/
immovable assets forum. Plans are underway to
sister with international companies for interaction
and future adoption of best practice standards
2,435
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6.2 Capital Expenditure
Table 6: Operational Capital
EXPENDITURE APPROVED BUDGET
2010/11
R’000
BUDGET 2011/12
R’000
ESTIMATE BUDGET
2012/13
R’000
ESTIMATE BUDGET
2013/14
R’000
Computers 1 600 1 200 1 100 1 100
Furniture 200 300 400 400
Capital improvements 200 500 500 500
TOTAL 2 000 2 000 2 000 2 000
6.3 Service Delivery Budget Implementation Programme
Not Applicable to JPC
6.4 Revenue and Tariff Analysis
Not applicable to JPC
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7. HUMAN CAPITAL
7.1 Staff Establishment
The company currently conducts its business with a staff complement of 128 employees. This
includes 14 short-term contractors. Additional temporary workers are intermittently employed
through labour brokers to address staff shortages in certain departments.
JPC as an organisation has grown significantly over the past decade and it has therefore
become necessary to realign itself to the strategic intent of the organisation. Failure to do so
results in an organisation being unable to achieve its strategic goals and inefficiencies result.
The main objective of the proposed Turnaround Strategy is to strengthen the core business.
The proposed organisational design, in support of the Turnaround Strategy, makes provision for
additional positions at mid-management level, compared with a historically predominantly
administrative heavy structure.
The following core departments will remain, namely Asset Management, Property Management
and Property Development. The support units will be: Finance, Corporate Services, Human
Resources and Chief Operating Officer.
The existing JPC structure consisted of 135 positions while the proposed structure has
increased to 149 positions.
To address the operational needs in the short-term, the following human capital interventions
will be undertaken:
1. Filling of critical positions through internal recruitment. This is in line with the JPC
recruitment and selection policy.
2. Filling of critical positions through external recruitment (buy strategy). External recruitment
will only be initiated in instances where suitably qualified candidates could not be identified
from within.
3. We will continue to focus on a build strategy by seconding employees to more critical roles
(lateral interim moves) and making acting appointments in line with policy requirements.
Greater emphasis will be placed on training initiatives and allocating bursaries. A review of
critical leadership roles will be undertaken with a focus on development of succession
candidates. This will enable JPC to grow its own skills over time.
The table below illustrates the staff numbers in terms of the proposed structure.
Department Actual Head Count
Proposed
Structure Predicted Variance
1 Office of the MD 3 8 5
2 Asset Management 8 16 8
3 Property Management 31 42 11
4 Property Development 17 17 0
5
COO: Special Projects &
Risk 10 20 10
6 Human Resources 5 8 3
7 Finance 18 22 4
8 Corporate Services 22 21 -1
Total 114 154 40
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Table 7: Staff Estimates
7.2 Human Capital Expenditure
The following costs are attached to the human capital requirements in fulfilment of the JPC
operations.
Table 8: Staff Expenditure
TOTAL STAFF EXPENDITURE
SALARIES AND
WAGES
Financial
Year
2009/10
Financial
Year
2010/11
Financial Year
2011/12
Projected
Percentage
Growth/Decreas
e
47 400 000 76 142 000 59 153 000 -22.3%
The decrease from 2010/11 to 2011/12 will not affect the operational implementation of the
proposed structure.
Table 9: Expenditure on Contracted Services
CONTRACTED SERVICES (Consultancy Services)
SERVICES
RENDERED
Previous
Financial
Year
2009/10
Current
Financial
Year 2010/11
Next Financial
Year 2011/12
Projected
Percentage
Growth/Decreas
e
TOTALS
4 562 000
6 685 000
8 365 000
20% increase
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Table 10: Staff Expenditure vs. Operational Expenditure
RATIO OF STAFF TO OPERATING EXPENDITURE
Previous
Financial
Year
2009/10
Current
Financial
Year
2010/11
Next Financial
Year
2011/12
Projected
Percentage
Growth/Decreas
e
STAFF
EXPENDITURE 47 440 000 76 142 000 59 153 000 -22.3 %
TOTAL OPERATING
EXPENDITURE 71 035 000 100 087 000 83 962 000 -17.0%
RATIO 66.8% 76.0% 71% -39.3%
7.3 Employment Equity
JPC as an employer fully subscribes to the purposes and intent of the Employment Equity Act
no. 55, 1998. Reports are submitted annually to Department of Labour.
Table 11: Employment Equity
Categories
Male Female
Total
A C I W A C I W
Managing Director 0 0 0 0 1 0 0 0 1
Senior Managers 6 0 1 3 1 1 1 0 13
Middle Managers 7 0 1 2 5 0 1 0 16
Junior Managers 11 0 1 4 13 2 1 3 35
Semi-Skilled Staff 10 0 0 0 28 5 1 5 49
TOTAL 34 0 3 9 47 9 4 8 114
JPC is committed to the principles of equity, anti-discrimination and diversity as enshrined in the
Constitution of the Republic of South Africa and the Employment Equity Act (EEA) No 55 of
1998. Gender mainstreaming, youth programmes, succession planning and retention have
become some of the key drivers in managing the manpower strategies at JPC. More so,
employment equity strategies have become a course for action to promote equality amongst
employees and help towards the development of future competent leaders in the Property
Industry.
Designated group status may be used as a tie-breaker in recruitment process, to ensure that
where two suitably qualified job candidates are available, we may prefer to appoint the
employee from a designated group, if that group is under-represented in that position or
occupation.
A revised EE policy was introduced in the past financial year where the following broad targets
were established:
o Current target base = 65/35%
o Planned target base = 80 /20%
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The JPC Employment Equity and Training and Development Committee was officially elected
and appointed towards the latter part of the 2010/2011 financial year. To date, awareness
sessions were conducted; consultation at all levels took place and adequate capacitation of the
forum was given priority. The Committee has developed its own Constitution and is
aggressively promoting the finalisation of the EE Plan by the JPC management.
The 2011/2012 financial year will accordingly see the implementation and the effective
monitoring and evaluation of the plan.
Below are some of the principles which guide the planning process:-
? JPC strives to create an open, fair and democratic workplace based on human dignity,
freedom and equality;
? JPC is committed to the principles of equity, non-discrimination and diversity as enshrined in
the Constitution of the Country and the EEA;
? JPC will seek to create a workplace that reflects the diversity of South African society, and
contributes to maximising the human resource potential of all people;
? JPC commits itself to apply employment equity as a means to promote equity in the
workplace;
? Employment equity measures will be designed to ensure that suitably qualified people from
designated groups have equal opportunities in employment and advancement;
? JPC’s commitment to employment equity is based on two key principles:
o The recognition that the disparities inherited from the apartheid past created
inequalities for the majority of the population and that these disparities require
redress
o JPC core principles are drawn from the Constitution, social legislation and
shared values of the organisation’s stakeholders and staff
? JPC believes that the essence of non-discrimination lies in the creation of fair opportunities
for all in the society, and in particular those who are or have been discriminated against on
the basis of race, gender, sexual orientation or other arbitrary or unjustifiable grounds;
? JPC will implement this policy using an inclusive approach that addresses both numerical
targets and non-numerical processes; i.e. affirmative action measures;
? Overall targets set for the JPC will inform departmental targets;
? Employment equity constitutes a major change initiative and will be managed as such;
? The policy will endeavour to facilitate the involvement of all stakeholders, and their roles will
be clearly outlined;
? Effective processes and structures will be put in place to monitor and evaluate the success
of the employment equity programmes in a transparent and participative manner. The
numerical targets and non-numerical objectives are to form part of Management’s
Performance Contracts;
? Preference in future appointments for groups that are under-represented in the different
occupational levels/categories will form part of a key feature in the implementation of the
JPC’s EE Policy;
? In accordance with Section 15(4) of the EEA, nothing in this policy requires JPC to take any
decision concerning an employment policy or practice that would establish an absolute
barrier to the prospective or continued employment or advancement of people who are not
from designated groups.
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Gender Mainstreaming Programme
The City of Johannesburg’s (hereafter CoJ or City) Gender Mainstreaming Programme (GMP)
began in earnest in May 2008 and since them much progress has been achieved. The progress
made bodes well for the roll-out process which is planned in the three year lifespan of the
project. The GMP broadly aims to ensure that gender becomes mainstreamed into the process,
systems, policies and organisational culture of the City of Johannesburg, across Core
Departments and Municipal Owned Entities.
This programme will consolidate the many gender initiatives undertaken within the City, which
have mostly lacked institutionalisation and have been poorly popularised. These initiatives have
remained fragmented along department /institutional lines and, consequently, the monitoring of
these programmes and the assessment of their impact has also remained fragmented. Through
the GMP these initiatives will be examined against the objectives and key deliverables of the
Programme.
A key strength of the GMP is that is focus lays both in internal and external communities of the
City. As a result of this two-pronged focus, the Programme has two main departmental drivers,
namely the Departments of Corporate and Shared Services.
The main objectives of the Gender Mainstreaming Programme are:
? To finalise the gender policy of the City of Johannesburg.
? To work with all departments and units of the City in developing gender action plans.
? To build capacity for the implementation of these plans through on-the-job training.
? To monitor and evaluate implementation of the Gender Policy.
? Present the Draft Gender Policy to the Executive Management Team
? Gender Policy be finalised and adopted by the Council
? Gender indicators be included in the current IDP planning process, and
? Structures and roles and responsibilities around gender mainstreaming need further
interrogation.
? Hold capacity building workshops for the Gender Focal Points
7.4 Staff turnover / movement during previous financial year 2011/12
Table 12: Staff Turnover
Staff
Movements
African Coloured Indian White
Totals
Male Female Male Female Male Female Male
Femal
e
Recruitment 8 6 1 3 18
Promotion 0
Resignation 3 1 4
Early Retirement 0
Retirement 0
Retrenchment 0
Medical Boarding 0
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Staff
Movements
African Coloured Indian White
Totals
Male Female Male Female Male Female Male
Femal
e
Dismissal 1 1 1 3
Death 0
Contract Expiring 3 1 4
Grand Total 15 7 1 4 1 1 29
7.5 Employee wellness programmes
JPC’s employee Wellness Committee previously comprised of dedicated employees who
performed duties voluntarily towards the goal of managing the social wellness side of JPC’s
manpower. The voluntary employee wellness team changes participation on an annual basis, in
order to provide opportunities to other staff members who have a passion towards such social
courses.
A significant milestone has been achieved during the 2010/11 financial year in that the company
managed to establish an official OHASA committee. The structure is still at its infant stages and
interventions based on capacitation of the forum members are currently being undertaken.
JPC in the interim still continues to seek the assistance of the CoJ’s OHASA department, in
particular where there is need for the services of a medical doctor or a professional counsellor
to assist employees in the workplace. In addition, JPC participates in all peer education
workshops and currently has two skilled peer coordinators who are able assist to staff in
managing their HIV and Aids status.
The company actively participated and will continue to support World Aids Day on the 1
st
of
December and other important awareness campaigns such as World breast cancer day and
World tuberculosis day.
The impending move of the JPC to new office premises will ensure that OHASA is appropriately
positioned to deliver amongst other employee wellness imperatives, on the provisions of the
Occupational Health and Safety Act.
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8. APPENDIX
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Johannesburg Property Company
DRAFT MEDIUM TERM REVENUE AND EXPENDITURE
BUDGET FOR 2011/12 - 2015/16
2007/08 2008/09 2009/10 Current year 2010/11 Medium Term Revenue and Expenditure Budget
Audited Audited Audited
Original
Budget
Adjusted
Budget
Full
Year
Forec
ast
Budget
Year
Varia
nce
Estimates Estimates Estimates
Estimate
s
Outcome Outcome Outcome 2011/12 % 2012/13 2013/14 2014/15 2015/16
R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000
REVENUE
Interest earned - external investments 253 24 8 7 7 7 8 9.8% 8 9 9 10
Interest earned - outstanding debtors 1,289 1,441 2,086
Agency services 18,683 40,687 18,664 22,638 106,413
106,4
13
50,387
-
52.6
%
41,305 43,049 45,101 47,347
Other Revenue 5,415 14,713 68,699 115,614 31,839
31,83
9
39,635
24.5
%
53,152 56,002 59,397 62,898
DIRECT OPERATING REVENUE 25,640 56,865 89,457 138,259 138,259
138,2
59
90,030
-
34.9
%
94,465 99,060 104,507 110,255
Internal Transfers
Operating Grants & Subsidies from (COJ) 11,130 10,516 537
Total Internal Transfers 11,130 10,516 537
TOTAL OPERATING REVENUE 36,770 67,381 89,994 138,259 138,259
138,2
59
90,030
-
34.9
%
94,465 99,060 104,507 110,255
EXPENDITURE
Employee related costs 26,643 31,778 37,653 75,480 76,142
76,14
2
59,153
-
22.3
63,175 66,650 70,316 74,183
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%
Depreciation & asset impairment 858 1,247 1,191 1,210 1,419 1,419 1,500 5.7% 1,584 1,671 1,763 1,860
Interest Paid : External Borrowings 247 382 314 370 370 370 391 5.7% 413 436 460 485
General expenses 10,413 16,469 16,157 22,177 20,204
20,20
4
22,020 9.0% 22,770 24,025 25,351 26,750
Loss on disposal of PPE 21 385 350
DIRECT OPERATING EXPENDITURE 38,182 50,261 55,665 99,237 98,135
98,13
5
83,064
-
15.4
%
87,942 92,782 97,890 103,278
Internal Transfers
Interest Expense (Sweeping Account) 137 1,590 1,590
-
100.0
%
Interest on Shareholders Loans 395 603 624 362 362 898
148.1
%
948 1,000 1,055 1,113
Internal Charges (ME's / Core) 850
Total Internal Transfers 395 603 761 850 1,952 1,952 898
-
54.0
%
948 1,000 1,055 1,113
TOTAL OPERATING EXPENDITURE 38,577 50,864 56,426 100,087 100,087
100,0
87
83,962
-
16.1
%
88,890 93,782 98,945 104,391
OPERATING DEFICIT/ (SURPLUS) 1,807 (16,517) (33,568) (38,172) (38,172)
(38,17
2)
(6,068)
-
84.1
%
(5,575) (5,278) (5,562) (5,864)
Less Tax (2,098) 4,310 11,484 11,070 11,070
11,07
0
1,760
-
84.1
%
1,617 1,531 1,615 1,704
OPERATING DEFICIT/ (SURPLUS) - after
tax
(291) (12,207) (22,084) (27,102) (27,102)
(27,10
2)
(4,308)
-
84.1
%
(3,958) (3,747) (3,947) (4,160)
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GLOSSARY OF TERMS
TERM DETAIL
CoJ Council
JPC Joburg Property Company
JDA Joburg Development Agency
JoshCo Joburg Social Housing Company
NGO Non Government Organisation
MOE Municipal Owned Entity
WSP Workplace Skills Plan
ATR Annual Training Report
SAPOA South African Property Owners Association
GIS Geographic Information System
LIS Land Information System
PIMS Property Information Management System
OPEX Operational Expenditure
CAPEX Capital Expenditure
MFMA Municipal Finance Management Act
IDP Integrated Development Plan
GDS Growth & Development Strategy
doc_363478291.pdf
Document tell business plan 2011 2012 city of joburg property company pty (ltd).
CITY OF JOBURG PROPERTY COMPANY (PTY) LTD
BUSINESS PLAN 2011/2012
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1
339999
City of Joburg Property Company Pty (Ltd)
“JPC”
Business Plan - 2011/2012
CITY OF JOBURG PROPERTY COMPANY (PTY) LTD
BUSINESS PLAN 2011/2012
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2
Sign Off:
Managing Director Name: ……………………..…………………………………………….
Signature of MD: ………..…………………………………………………………………….
Signature of MMC: ……………………………………………………………………………
Date: ………..…………………………………………………………………………………..
Receipt & Review:
Signature of Finance Officer: ……………………………………………………………
Signature of CSU Representative: ……………………………………………………..
CITY OF JOBURG PROPERTY COMPANY (PTY) LTD
BUSINESS PLAN 2011/2012
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3
TABLE OF CONTENTS
1. INTRODUCTION 4
2. EXECUTIVE SUMMARY 12
3. STRATEGIC ANALYSIS 16
4. STRATEGIC FOCUS AREAS 26
5. RISK ASSESSMENT 50
6. FINANCIAL IMPACT 59
7. HUMAN CAPITAL 67
8. APPENDIX 73
List of Tables
Table 1: IDP Programmes and Delivery Agenda for 2011/12 .............................................. 15
Table 2: Operational Plan for 2011/12 . ............................................................................... 30
Table 3: Risks, Mitigating Actions and Financial Impact ...................................................... 50
Table 4: Operational Expenditure ........................................................................................ 57
Table 5: Key Programme Costing ...............................................……………………………..63
Table 6: Operational Capital ............................................................................................... 66
Table 7: Staff Estimates ..................................................................................................... 68
Table 8: Staff Expenditure ................................................................................................... 68
Table 9: Expenditure on Contracted Services ..................................................................... 68
Table 10: Staff Expenditure vs. Operational Expenditure .................................................... 69
Table 11: Employment Equity ............................................................................................ 69
Table 12: Staff Turnover ..................................................................................................... 71
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1. INTRODUCTION
The City of Joburg Property Company (Pty) Ltd (JPC) was established in 2000 and is operating
as an MOE of the Council, Council, to deliver the following:
? Property Development;
? Property Management Services;
? Asset Management Services; and
? All ancillary services to the above.
The main objective of JPC as an MOE is:
“to develop and manage Council-owned properties for the purpose of maximising both social
and commercial opportunities for the Council in the short and longer term.” The nature of
business is the Management of the CoJ property portfolio.
The JPC’s mandate is to support the Council’s economic strategy, as well as Mayoral strategic
priorities aimed at making Johannesburg a “World-class African City”. JPC ensures that
economic growth and job creation occur to address socio-economic disparities and legacies of
discrimination and inequality as well as:
? Realizing value (social, financial and economic) for the CoJ;
? Supporting economic development and aligning the CoJ property portfolio with CoJ
priorities;
? Increasing the effectiveness of economically viable municipal and social use of properties;
? Management of risk and return with respect to the property portfolio and property
transactions for the CoJ.
JPC has positioned itself as the managing agent of the property assets of the Council,
responsible for maximising the social, economic and financial value of the CoJ’s total property
portfolio and enhancing the efficiency of its use as “The People’s Property Company”.
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5
1.1. VISION AND MISSION
1.1.1. Vision
To provide property management, property development, property asset management services,
land strategy, acquisition and stewardship in order to maximise the social, economic and
financial benefit to the CoJ and support the CoJ’s delivery objectives on a cost competitive
basis.
1.1.2. Mission
JPC is the manager of the property assets of the City of Johannesburg, responsible for
maximising the social, economic and financial value of the CoJ’s total property Portfolio and
enhancing the efficiency of its use. JPC will provide asset management, property management,
property development services and land strategy, acquisition and stewardship to the CoJ, as
well as interact with the general public in respect of this Portfolio. JPC will support the
achievement of the CoJ’s strategic priorities, including economic and social development and
the service delivery objectives of the CoJ.
1.1.3 Core values
Values have become an ethical foundation for all organizations and are therefore fundamental
to the JPC’s success. Such values are not just important but crucial to the overall ascendancy
of JPC. The following values were identified and adopted by JPC:
? Professionalism,
? Accountability,
? Responsibility,
? Customer Service and
? Trust
1.2. MANAGEMENT AND ORGANISATIONAL STRUCTURE
The current approved organisational structure is divided into the following three (3) core
business units and four (4) support units with 135 positions (both filled and vacant posts):
Core Business units
? Property Asset Management
This entails the strategic management of the City’s property portfolio which includes fixed
asset register management, physical verification of city fixed assets, property sector and
economic research, strategic plan and property advise, compilation of asset management
plans, portfolio sector and economic returns and council property information - to ensure
maximisation of portfolio returns in line with JPC’s social and economic mandate
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? Property management
This function involves obtaining and maintaining value from the property portfolio by
effectively administering & leasing, acquiring and selling and lastly ensuring maintenance of
the property and management of servitudes and encroachments and facilities management.
? Property development
Property development aims to maximise the financial, economic and social returns from the
sale and/or lease of council owned land by active engagement with the property
development value chain including site identification, property identification, site preparation,
in line with the City’s Growth and Development Strategy.
Support Units
? Human Resources
? Stakeholder Management
? Finance
? Legal
? Risk Management
? Company Secretariat
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The following is the current high level organisational structure of J PC which has a number of shortcomings:
Company
Secretary
HUMAN
RESOURCES
STAKEHOLDER
MANAGEMENT
FINANCE and
SUPPLY CHAIN
MANAGEMENT
PROPERTY
DEVELOPMENT
PROPERTY
PORTFOLIO and
FACILITIES
MANAGEMENT
LEGAL
SERVICES
ASSET
MANAGEMENT
MANAGING DIRECTOR
Strategic Support,
Risk and Reporting
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JPC is cognisance of the fact that the City is going through a transitional phase; the current
organisational design of JPC has its shortcomings in that:
? There are certain unrelated activities within management portfolios and there’s difficult links;
? The structure is geared towards economic gains rather than balancing social and economic
development opportunities;
? Difficult links between process units (Property Management, Supply Chain and Legal);
? No specific capacity dedicated to ensuring end to end accountability for process completion;
? Focus on revenue generating properties only;
? Certain unrelated activities within management portfolios;
? Insufficient capacity dedicated to key revenue generating functions, e.g. advertising and
? Insufficient capacity dedicated to asset planning
? The current staff compliment consists mostly of entry level staff, addressing mainly the
administrative functions of the organisation.
These shortcomings and imbalances have led to stakeholder frustration. The company
embarked on a turnaround strategy exercise and the results showed that JPC required a re-
engineering of functions within the company. The current organisational structure, therefore,
had to be re-organised to better reflect both the economic and social objectives and to ensure
end to end accountability for transactions handled by JPC.
To correct the imbalances and at the same time improve operational efficiencies of the
company, JPC therefore proposed the following structure to its Board:
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MANAGING DIRECTOR
ASSET
MANAGEMENT
PROPERTY
MANAGEMENT
HUMAN
RESOURCES
FINANCE
CORPORATE
SERVICES
PROPERTY
DEVELOPMENT
Executive
Secretary
Strategic/Executive
Support
Company Secretary
CHIEF
OPERATIONS
OFFICER
Risk Manager
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The following changes were made to the high-level structure:
? Chief Operating Officer – new position introduced
? Human Resources - position has been elevated to an Executive Manager level Legal –
Legal is no longer a direct report to the Managing Director
? Stakeholder Management – changed to Corporate Services as it includes activities such as
IT, company registry, marketing and public relations.
The majority of changes have been made in the middle management level to address the skills
shortage. The new proposed structure has 154 positions.
The Asset Management unit is reorganised to better reflect the future revenue model, by
ensuring that the following required asset management services are provided:
? Portfolio/property strategy development (including research and valuations)
? Implementation of COJ/MOE property strategy/requirements
? Roll out of asset management plans
2. The Property Management unit is reorganised to ensure end to end accountability for
transactions:
? There is a split between front office (external stakeholder engagements and property
management to meet revenue targets) and back office (pure transaction processing)
? The legal process function (legal administration) is positioned within the Property
Management transaction unit to ensure end to end accountability for transactions - legal
process staff will still have a reporting line into the Legal Advise unit, in order to ensure
best legal practice
? Provision for facilities management services
3. The Property Development unit is also reorganised to ensure end to end accountability for
transactions:
? Dedicated legal administration function
4. Current support functions have been reorganised as follows:
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? COO: Special projects, risk and reporting has been elevated to an Executive Manager
level. This unit will be responsible for overall CoJ reporting and to facilitate
transformation and provide project management services for the company. The focus
will also be on the development, implementation and monitoring of risk and the
management of the Land Regularization Programme. A project management office
(PMO) function is also within this unit for the potential incorporation into the future
operating model
? Creation of a corporate services unit with marketing and communications, office
management, stakeholder management and IT
? Human Resources will provide critical human resource management and streamline the
manner in which HR support of strategic, transactional and departmental support
activities are performed
? Legal services within the COO unit will perform true legal advisory services, not
transaction processing support
In general, this structure aims to enable the departments to focus on the critical and core
activities that contribute directly to JPC’s front line service delivery.
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2. EXECUTIVE SUMMARY
JPC’s mandate is to support the CoJ’s economic strategy as well as Mayoral strategic priorities.
These strategies are aimed at making Johannesburg a “World-class African City” through
ensuring that investment, economic growth and job creation occur. As such the JPC sees as a
core part of its business to support and encourage investment and growth, but also to address
socio-economic disparities and legacies of discrimination and inequality as well as achieving the
following priorities:
? Realizing value (social, financial & economic) for the CoJ;
? Supporting economic development and aligning the CoJ Property Portfolio with CoJ
priorities;
? Increasing effectiveness and efficiencies in respect of municipal and social use properties;
and
? Management of risk and return with respect to the Property Portfolio and property
transactions for the CoJ.
Financial and Budgetary Environment
In order to deliver its mandate effectively, it is critical that the costs incurred in managing the
City’s property portfolio are countered by revenue earned. The impact of a reduced budget will
have an adverse effect on service delivery on JPC projects. However, JPC looks for alternative
sources of funding. Financial year 2010/11 is a typical example of insufficient Capex budget
received:
REQUESTED RECEIVED
JPC R2.5m R2m
CoJ Portfolio R115.3m R13m
TOTAL R117.8m R15m
Impact of under budgeting
The impact of under budgeting results in the following:
? Projects of CAPEX value of R115.3 and investment valued at over a billion will not be
realised.
? Facilities management will not be effectively implemented resulting in dilapidated property
? Progress in Site development and site preparation will decline resulting in lack of realisation
of the value of land
? Job creation will be negatively impacted.
? Negative impact on infrastructure development and thus reduce the value of the City’s rate
base.
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Some of JPC’s projects are unfunded and they are usually rolled over. The magnitude and the
size of the projects means that the timeframe to completion is between 3 and 5 years before a
completed development can realise a value. Over the years, JPC has attracted R8.5 billion
worth of investments but in order to realise the economic value of these investments it is critical
to proceed with and finalise them, as they impact on job creation, infrastructure development
and improved rates base.
For the 2011/12 financial year, the company’s objectives would be achieved with the following
CAPEX budget requested:
REQUESTED
JPC R2.5m
CoJ Portfolio R69.35m
The reduced funding is a result of the organisation prioritising specific projects. It is therefore
critical that the budget is fully funded.
Core projects
The company’s priorities are as follows
? Complete physical verification of the asset register- Asset Management
? Accelerate land regularisation throughout all regions – COO office
? Clean up of outdoor advertising portfolio and revenue maximisation of the portfolio
? Development of a portfolio strategy
? Asset management planning
? Property value creation – all business units
? SDA refinement in consultation with City
? Implementation of a turnaround Strategy
? Completion of core projects as per the Operational plan in Table 2
Inter-governmental initiatives and collaboration with other sectors:
Collaboration with other Municipal Owned Entities (MOEs), City Departments, provincial
departments, national departments and the private sector is critical to delivering quality
services. JPC endeavours to identify and engage with private sector partners for the
implementation of capital projects which contribute to the economic growth of the City, as per
the Economic Development Sector plans. Our engagement with private sector has attracted
investments of R8, 6 billion; however the company is looking at attracting more investments in
future
Regulatory issues:
JPC is governed primarily by the Municipal Systems Act (as amended), Companies Act 2008
and Municipal Finance Management Act No 56 of 2003 (MFMA) and its various Regulations.
The primary objective of is to ensure sound and sustainable management of the Council and its
various entities.
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Dependency Matrix:
To deliver its mandate, JPC works hand in hand with the following Departments/MOEs:
Department/MOE Dependency - assisting JPC in the managing and
developing of Council-owned properties by
Property Development and value
creation
1. Department of Planning and
Urban Management
2. Transportation Department /
Johannesburg Roads Agency
(JRA)/ City Power/Joburg
Water
3. Environment Department
o Rezoning and subdivision of property
o Timeous approval of building plans
o Timeous approval of outdoor advertising in terms of by
laws
o Timeous establishment of townships
o Implementation of the Land Strategy
o Completion of Geographical Information System (GIS) and
Land Information System (LIS)
o Avail bulk services
o Timeous connection of bulk infrastructure to property
developments
o Timeous assessments of environmental management
plans and impact assessments
Land Requirements
1. All CoJ departments and MOEs
o Ensuring compliance of Sec 14(2) of the MFMA by
obtaining comments from departments and MOEs prior to
leasing or alienating properties
o Support land and property requirements from departments
and MOEs to ensure successful completion of asset
management plans.
o Ensuring that strategic land parcels are alienated or leased
in line with the Supply Chain Management policy for land
and acquisition is done in terms of the Land Strategy and
Spatial Development Frameworks
o To ensure specialised asset, like parks, will be ring fenced
for MOEs to perform facilities management
o To ensure JPC is provided with all land requirements to
enable the ring fencing of land parcels intended for service
del, social purposed, service del purposes, environmental
needs
Management of the property
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portfolio and revenue generation
1. Revenue Department
2. Group Finance Department
o Issuing timeously release of clearance certificates for
properties which have been alienated.
o Ensure availability of funds for the maintenance of the
asset register in line with good governance
Table 1: IDP Programmes and Delivery Agenda for 2011/12 which reflects only the key
programmes the company will undertake.
5-year IDP Programme Key programme output
Area based economic development
programme
Transfer 1000 properties to beneficiaries as part of the Land
Regularisation initiative - Transfer and allocate properties to
beneficiaries
Increase the economic base of underdeveloped areas, value of
investment secured in marginalised areas and developed areas
Investments leveraged to facilitate improvement
in underdeveloped areas including the South of
Johannesburg and Inner City (including Randburg
Development and decking of railway line )
Beneficiation programme Support Urban Agriculture by the initiation of the Disuse
Land Programme
Emerging Industries support
programme
Tenders to be awarded per year to the emerging
property developers who will be mentored and supported
Acquisition of land for Housing Land acquired for the construction of housing units
Inclusion of Housing requirement in JPC’s mixed use
development
300 properties will be released in land regularization programme
targeted at income group of R7500 and less or as directed by
housing department
JPC has pursued the development of integrated,
mixed use, mixed income developments in the Diepsloot
and Rietvlei Projects where 30% of development will be
reserved for affordable housing.
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5-year IDP Programme Key programme output
Asset management and maintenance
programme
Accomplish 100% verifiable fixed asset register – complete,
accurate and valid asset register
The Land Regularization information component will be
added to the Fixed Asset Register.
Future revenue optimisation
programme
Alternative sources of revenue – utilising the property asset
Implement innovative revenue generation initiatives.
International & domestic positioning
programme
Positioning of JHB as a centre of investment and to attract
international finance and variety of scarce skills in the property
and construction transactions on CoJ land, estimated to yield
R1.0 billion private sector investment.
City marketing and communication
programme
Initiatives and communication focused on key stakeholders
viz. Council, Mayoral, MOEs, CoJ Departments,
General Public, Property Industry, Other spheres of
Government.
Satisfaction level of 75% expected
3. STRATEGIC ANALYSIS
In order to ensure streamlined and focused service delivery, JPC has identified the following six
(6) strategic objectives:
? Support economic development utilising the property portfolio;
? Support community development and social initiatives utilising the property portfolio;
? Utilise the CoJ property portfolio as a vehicle for transformation;
? Ensure efficient, economic, and effective service delivery to JPC’s clients, customers and
stakeholders and
? Ensure a professionally managed and sustainable company.
The company’s strategic objectives are closely linked to the following Mayoral priorities:
? Economic growth and job creation ;
? Health and Community development;
? Housing and Safety;
? Safe clean and green environment and
? Well governed and managed city
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The property environment, within which JPC operates, is adversely affected by regulatory and
global economic market conditions, some of which are:
? Introduction of the Municipal Asset Transfer Regulations, 2008 which regulates the transfer
and permanent disposal of non-exempted capital assets by municipalities and municipal
entities in order to facilitate the enforcement and administration of section 14 (2) of the
Municipal Finance Management Act 56 of 2003, which is to attain a council resolution
before the alienation of any council owned properties. These regulations hinder the process
of the City in the alienation of land because of time delays caused by compliance.
? The property portfolio is adversely affected by downturns in the global market.
Past performance on key areas
1. JPC, has in the past electoral term, continued to play an important role in the fulfilment of
the City's vision through its property activities and related services. From the beginning of
the electoral term, JPC has succeeded to position and manage the property holdings of the
Council as a strategic and a valuable resource, which provides economic and financial
returns as well as social benefits in line with the CoJ’s priorities.
2. JPC, over the past 5 years, has leveraged private sector investments in excess of
R8bn.
3. The company has devolved an estimated 7,000 properties to support the Housing Master
Plan.
3. JPC raised alternative revenue to the value of R114m using the Outdoor Advertising portfolio
4. JPC recovered 33 properties valued at R200m that were fraudulently transferred,
resulting in the company receiving positive media coverage for the City thereby maintaining
the City’s asset register.
5. JPC has demolished a significant number of illegal properties.
6. JPC has over the past years created over 1000 jobs utilising the property portfolio
7. Secured investments in marginalised areas to increase the economic base of the
underdeveloped areas to the value of R1b in areas such as Orlando, Newtown, Land
Regularisation programme, Jabulani and Kliptown
8. Ensured the completion of facilitation of:
- Bruma development
- Randburg
- Newtown
-Soweto Theatre
9. Completed the following developments:
- Pan Africa Mall
- Fairlands
- Soweto Hospice
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- Heroes bridge
- University of Johannesburg campus upgrade
- Orlando Towers
- JoshCo Hostel conversion
- Dale Lace Village
- Mofolo North residential development
- Worldware Shopping Centre
- FNB Westbank HO
- Pan African Shopping Centre
- Melrose Crossing
9. Surveyed the whole of Soweto for the Land Regularisation programme
10. Created 8000 jobs
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5-Year Strategic Objective IDP Programme Progress during the electoral term
(2005/06-2010/11)
Improve the profile of Johannesburg, both
on the continent and internationally, as a
core centre of finance, business and trade.
International & Domestic Positioning Programme
In a bid to leverage private sector investment,
the target for the 5 years was set at R1 billion
per year, however the company raised R8
billion for the past 5 years.
Increased number of beneficiaries reached
by City-facilitated skills development
programme and job creation.
Skills Development Programme
8,000 jobs have been created in the property
construction industry over the past five years.
Increase the economic base of
underdeveloped areas of the City.
Areas based Economic Development Programme
Total investment of R1.5 billion has been
leveraged.
Increase the City’s spend to specific
targeted firms owned by specific categories
of HDI (BEE, women, youth, etc)
BEE support programme
Throughout the years, JPC has exceeded the
60% (Capex & Opex) mark in supporting
BBBEE.
Increase budget spend on NGOs and CBOs
targeting programmes at vulnerable and
poor households. 100% of NGOs and CBOs
have institutional and financial capacity to
carry out their work in support of the poor
and vulnerable by 2015
NGO/CBO Support Programme
JPC plans to continue supporting NGOs’ &
programmes that support the poor and
vulnerable in terms of leases.
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5-Year Strategic Objective IDP Programme Progress during the electoral term
(2005/06-2010/11)
Improved accessibility to sports and
recreation facilities and programmes, both in
terms of distribution across the City and
average operating hours
Sports and development programme
One of the Mayoral priorities is to “Support
community development and social
initiatives”. JPC has embarked on various
projects like Soweto Theatre and Soweto
Hospice. Nike Sports Centre in Pimville has
also leased out leases for social purposes.
Through both the City’s own means, and in
partnership with other actors and
stakeholders, deliver 100 000 well-located
and good quality housing units over the next
five years, which includes the delivery of 15
000 rental housing units, 30 000 housing
units through Community Builder
Programme and 50 000 mixed income
housing units.
Acquisition of land for Housing
Various land parcels have been purchased
and/or made available for the construction of
housing units. The company acquired farms in
Doornkop and Zandspruit – this equates to
5800 housing units.
Address the housing ladder gap by
facilitating private sector delivery of
affordable rental and home ownership
Housing ladder gaps delivery programme.
In a bid to further support economic
development on Council-owned land, JPC has
leverage 3000 affordable housing units in all
residential developments of COJ land.
Introduce the Sustainable Human
Settlements approach to all new housing
developments
Sustainable Human Settlements Programmes
(Housing component)
Pursued the development of integrated, mixed
use, mixed income developments in different
areas
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5-Year Strategic Objective IDP Programme Progress during the electoral term
(2005/06-2010/11)
Improved understanding of future revenue
risks and opportunities
Future revenue optimisation programme.
The company will continue to embark on
investigating alternative sources of revenue
which can be generated from the property
asset
100% of CoJ Compliance with all relevant
legislation
Legal support and compliance programme
Compliance Register was formulated and
reported to the SHU on a quarterly basis.
Achieve clean audit Internal audit development programme
For the past 5 years the company has
achieved unqualified audit reports from the
AG.
A record of active mutually beneficial,
interactions with selected sister cities
Sister City and international relations programme,
Protocol development programme.
JPC obtained membership of the South
African Property Owners Association and has
participated in international property seminars
and expos e.g. MIPIM, EXPO REAL, FEPE
and SAPOA
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Key programmes proposed to continue
5-year IDP Programme Key programme output
Area based economic development programme Transfer 1000 properties to beneficiaries as part of the Land Regularisation initiative - Transfer
and allocate properties to beneficiaries
Increase the economic base of underdeveloped areas, value of investment secured in
marginalised areas and developed areas
Investments leveraged to facilitate improvement
in underdeveloped areas including the South of
Johannesburg and Inner City (including Randburg
Development and decking of railway line )
Beneficiation programme Support Urban Agriculture by the initiation of the Disuse
Land Programme
Emerging Industries support programme Tenders to be awarded per year to the emerging
property developers who will be mentored and supported
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5-year IDP Programme Key programme output
Acquisition of land for Housing Land acquired for the construction of housing units
Inclusion of Housing requirement in JPC’s mixed use development
300 properties will be released in land regularization programme targeted at income group of
R7500 and less or as directed by housing department
JPC has pursued the development of integrated,
mixed use, mixed income developments in the Diepsloot
and Rietvlei Projects where 30% of development will be
reserved for affordable housing.
Asset management and maintenance programme Accomplish 100% verifiable fixed asset register – complete, accurate and valid asset register
The Land Regularization information component will be
added to the Fixed Asset Register.
Future revenue optimisation programme Alternative sources of revenue – utilising the property asset
Implement innovative revenue generation initiatives.
International & domestic positioning programme Positioning of JHB as a centre of investment and to attract international finance and variety of
scarce skills in the property and construction transactions on CoJ land, estimated to yield R1.0
billion private sector investment.
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5-year IDP Programme Key programme output
City marketing and communication programme Initiatives and communication focused on key stakeholders
viz. Council, Mayoral, MOEs, CoJ Departments,
General Public, Property Industry, Other spheres of
Government.
Satisfaction level of 75% expected
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SWOT analysis
The company is currently in the process of finalising the turnaround strategy which will improve
operational efficiencies and revenue streams. Highlighted below are the SWOT elements that
would have an impact on the effective implementation of the turnaround strategy.
Internal Strengths Weakness
? Usable space of 17 000 hectares
worth approximately R2bn
? Ability to expropriate property
? Extensive Experience in property
management, development, asset
management and facilities
? Island of excellent in property
management
? Ability to use the strength of property
to leverage investment
? Access to key stakeholders and
decision makers
? JPC is the sole agent of the CoJ with
a mandate to manage Council owned
properties on behalf of the City in
terms of the 25 year SDA with the
City
? Solid understanding of legislation and
ability/commitment to work within in.
? Inadequate HR capability
? Lack of appropriate skills
? Inadequate funding
? Lack of centralised Property
MIS
? Outdated IT infrastructure
? Cumbersome internal land
transfer processes
? Inability to maintain the
property portfolio due to
JPC’s limited mandate
regarding security and
facility management
services.
? Overlaps with City
Departments/MOEs.
? Dependency with City
departments /MOEs
resulting in delays in
implementation of property
strategies.
External Opportunities Threats
? Maximise revenue through the outdoor
advertising portfolio – e.g. through
identification of new sites without
polluting the City
? Increase the value of the property
portfolio by purchasing strategic land for
land banking
? International investment: investigating
alternative sources of revenue which can
be generated from the property asset.
? Optimise revenue from commercial
portion of property portfolio.
? Vandalism to property
portfolio
? Land invasions
? Illegal occupation of land
parcels
? Fraudulent land sales
? Encroachment on JPC’s
mandate by other MOEs
? Cumbersome CoJ’s land
approval processes for land
transactions
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4. STRATEGIC FOCUS AREA
4.1. Analysis of our business against GDS principles and City Indicators
4.1.1. Strategy Alignment / City Indicators
GDS principle 5-Year
strategic
objective – per
business plan
Describe JPC’s
strategic objectives
alignment to GDS –
per business plan
Alignment to
six themes
identified in
the
turnaround
strategy
Alignment to
the six
segments
identified in the
turnaround
strategy
Proactive
absorption of
the poor
Facilitated
social mobility
? Support
Housing
Master Plan
and
delivery
utilising the
CoJ
property
portfolio
? JPC supports the
Housing Master
Plan through the
finalization of the
acquisition of
properties on behalf
of CoJ Housing and
the Provincial
Department of
Housing for the
development of
social housing
? Achieves
social
purpose
? Allows for
participation
across
property
value chain
? Service
delivery
? Social
? Future needs
Innovative
governance
? Support
economic
developme
nt utilising
the CoJ’s
property
portfolio
? Ensure
financial
sustainabilit
y
? JPC, through its
property
management and
development
activities, actively
generates private
sector investment in
the CoJ and long-
term financial
sustainability for the
CoJ; targeting R1B
property
development and
construction
investment by the
private sector in
2009/10 financial
year
? Through the active
management of the
CoJ’s property
portfolio, JPC
enhances long-term
lease revenue
generation and
enhances the value
? Leads the
property
sector
? Achieves
operational
excellence
? Attracts and
retains great
people
? Participates
across the
property
value chain
? Ensures
financial
sustainability
for the City
and itself
? Achieves its
social
purpose
? Disposal of
non strategic
assets
? Economic
? Future needs
? Open land
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GDS principle 5-Year
strategic
objective – per
business plan
Describe JPC’s
strategic objectives
alignment to GDS –
per business plan
Alignment to
six themes
identified in
the
turnaround
strategy
Alignment to
the six
segments
identified in the
turnaround
strategy
of the CoJ’s
property assets
Balanced and
shared growth
Settlement
restructuring
Proactive
absorption of
the poor
Facilitated
social mobility
Innovative
governance
solutions
? Support
economic
developme
nt utilising
the CoJ’s
property
portfolio
? Support
community
developme
nt utilising
the CoJ’s
property
portfolio
? Support the
Housing
Master Plan
and
delivery
utilising the
CoJ
property
portfolio
? Support
environmen
tal
programme
s and
Initiatives in
the
manageme
nt of the
CoJ’s
property
portfolio
? JPC aims to award
75% of the CoJ’s
property portfolio
and the company’s
CAPEX to BBBEE
projects
? JPC actively
supports and
promotes socio-
economic
transformation both
within the company
and through
property
management and
development
activities
? All of JPC’s
property
development
initiatives address
the need for
sustainable human
settlements. As
such, all
developments are
based on sound
principles for
effective integration
of communities and
promote access to
appropriate facilities
and employment
opportunities (mixed
use developments),
e.g. the Land
Regularization
Programme,
Orlando Ekhaya,
etc.
? Achieves its
social
purpose
? Achieves
operational
excellence
? Attracts and
retains great
people
? Participates
across the
property
value chain
? Ensures
financial
sustainability
for the City
and itself
? Service
Delivery
? Social
? Economic
? Future needs
? Non strategic
? Open land
Sustainability
and
environmental
? Establish
land
strategy,
? JPC aims to ensure
the quality of life of
all communities by
? Achieves its
social
purpose
? Service
Delivery
? Social
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GDS principle 5-Year
strategic
objective – per
business plan
Describe JPC’s
strategic objectives
alignment to GDS –
per business plan
Alignment to
six themes
identified in
the
turnaround
strategy
Alignment to
the six
segments
identified in the
turnaround
strategy
justice
land
acquisition
and land
stewardship
in line with
CoJ’s
priorities
incorporating green
infrastructure into
developments on
council-owned land,
e.g. Huddle Park
and Rietvlei Zoo
Farm developments
? JPC also brings
green infrastructure
to historically ‘grey’
townships with
developments such
as Orlando Ekhaya
and the Pimville
Golf Course
? JPC has also
formulated the
Disused Land
Programme which
looks at interim and
effective utilisation
and management of
vacant land
throughout CoJ, for
agriculture,
landscaping and
environmental
management
? Achieves
operational
excellence
? Attracts and
retains great
people
? Participates
across the
property
value chain
? Ensures
financial
sustainability
for the City
and itself
? Achieves its
social
purpose
? Economic
? Future needs
? Non strategic
? Open land
Innovative
governance
solutions
Settlement
restructuring
Balanced and
shared growth
Sustainability
and
environmental
justice
? Support
community
developme
nt utilising
the CoJ’s
property
portfolio
? Support
environmen
tal
programme
s and
Initiatives in
the
manageme
nt of the
CoJ’s
? JPC has an
effective customer
relationship
management
system that
includes an
information desk,
client service centre
and stakeholder
management unit
? JPC has also
entered into
discussions with
community leaders,
action groups and
ward councillors
with regard to
? Achieves its
social
purpose
? Achieves
operational
excellence
? Attracts and
retains great
people
? Participates
across the
property
value chain
? Ensures
financial
sustainability
for the City
? Service
Delivery
? Social
? Economic
? Future needs
? Non strategic
? Open land
COUNCIL PROPERTY COMPANY (PTY) LTD
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GDS principle 5-Year
strategic
objective – per
business plan
Describe JPC’s
strategic objectives
alignment to GDS –
per business plan
Alignment to
six themes
identified in
the
turnaround
strategy
Alignment to
the six
segments
identified in the
turnaround
strategy
property
portfolio
? Establish
land
strategy,
land
acquisition
and land
stewardship
in line with
CoJ’s
priorities
proposed
development on
council-owned
properties
? JPC provided
property related
support services for
other spheres of
government through
its participation in
the Gautrain
property related
activities and the
provision of social
housing
and itself
? Achieves its
social
purpose
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Table 2: Operational Plan 2011/12
5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
Sector
diversification
through
support for
emerging and
new sectors
and retention
of competitive
economic
sectors
Encouraging
and supporting
Leveraging
and
Facilitating of
the creation of
jobs in
property
portfolio
projects on
Council
owned land
New
Indicator
1. Pota
to Sheds &
Majestic
(Newtown)
1
2
R1.12
5M
(200
jobs)
R4,5
million
Site Clearance
and piling
(Potato Sheds)
Demolitions
(Majestic)
20 jobs
R280 000 Foundations
(Potato
Sheds)
Start
Tenant
Launch
(Majestic)
30 jobs
R280 000 Start construction
of top structure
Tenanting
(Majestic)
50 jobs
R280 000 Construction
15% complete
Site
preparation
(Majestic)
100 jobs
R280 000
New
Indicator
2. Jabulani
CBD Project
R1.16
M
R3,5
million
Theatre 75%
complete
R292 000 Theatre
100%
R292 000 Theatre opening
R292 000 Phase 1B (300
units)
R292 000
1
Jobs are based on construction work based on 4 jobs per million
2
Figures should be looked at cumulative year on year
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
the creation of
sustainable
work
opportunities
(Mixed-use
Development
3
&
4
(500
jobs)
Phase 1A
Residential
units(300)
superstructure
50 jobs
complete
Phase 1A
Residential
units (300)
complete
100 jobs
Phase 1B
Residential units
(300)
superstructure
Retail
development
construction
started
100 jobs
completed
Retail
development
15% complete
250 jobs
3
Jobs are based on construction work based on 4 jobs per million
4
Figures should be looked at cumulative year on year
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
New
Indicator
3. Orlando
Ekhaya
Project
(Housing and
Retail)
5
&
6
R1.16
M
(100
jobs)
R3,5
million
Start
Construction of
Katavi
Residences
20 jobs
R292 000 Katavi
Residences
10%
complete
Start
construction
of Phase 1
Retail ( Mall
of Soweto)
20 jobs
R292 000 Katavi
Residences 20%
complete
Phase 1 retail
scheme 10%
complete
30 jobs
R292 000 Katavi
Residences
40% complete
Phase 1 retail
20% complete
30 jobs
R292 000
New
Indicator
4. Kgoro
(Sandton
R1.2M R6 million Finalisation of
responsibility
R300 000 Submission
of sect 46
R300 000 Attending to
requirements for
R300 000 SDP approved R300 000
5
Jobs are based on construction work based on 4 jobs per million
6
Figures should be looked at cumulative year on year
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
Integrated
Development)
Project
7
&
8
&
9
0 jobs matrix and
management
rules
Line shop
handover
application
and SDP
bulk services and
finalising MOU
Site Clearance
and piling
(Potato Sheds)
Demolitions
(Majestic)
R250 000 Foundations
(Potato
Sheds)
Start
Tenant
Launch
R250 000 Start construction
of top structure
Tenanting
(Majestic)
R250 000 Construction
15% complete
Site
preparation
R250 000
7
High technology development, therefore less jobs created. This is a high-rise development.
8
Figures should be looked at cumulative year on year
9
This project is anticipated more than five (5) years. The balance will accrue in the following 5 years
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
R5 Million
investment
(Majestic)
R10M
investment
R15M investment
(Majestic)
R20M
investment
Asset
Management
and
maintenance
programme
New
Indicator
Perform
highest and
best use on
developable
land owned by
CoJ -
Government
Precinct-
Commercial
Offices
R4 million Conduct highest
and best use
study (20 x
10,000 per
highest and
best use report)
R200,000 Conduct
highest and
best use
study (20 x
10,000 per
highest and
best use
report)
R200,000 Conduct highest
and best use
study (20 x
10,000 per
highest and best
use report)
R200,000 Conduct
highest and
best use study
(20 x 10,000
per highest
and best use
report)
R200,000
Asset
Management
and
New
Indicator
Physical
verification of
entire property
R18,5m Physical
verification of
1500 improved
R4,125,00
0
Physical
verification
of 1500
R4,125,000 Physical
verification of
1500 improved
R4,125,000 Physical
verification of
1500 improved
R4,125,000
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
maintenance
Programme
holdings
owned by
CoJ.
properties and
vacant land we
know of:
Condition of
assessment of
properties.(Exp
ense).Generate
savings targets
Generate
revenue -
Income
statement per
property.
improved
properties
and vacant
land we
know of:
Condition of
assessment
of
properties.(
Expense).G
enerate
savings
targets
Generate
revenue -
Income
properties and
vacant land we
know of:
Condition of
assessment of
properties.(Expen
se).Generate
savings targets
Generate revenue
-Income
statement per
property.
properties and
vacant land we
know of:
Condition of
assessment of
properties.(Exp
ense).Generate
savings targets
Generate
revenue -
Income
statement per
property.
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
statement
per
property.
Promoting
Joburg as a
business and
leisure tourism
destination,
including
positioning
Joburg as a
sort after head
office location
for
international
companies.
International &
Domestic
Positioning
Programme
New
indicator
R5milli
on
R25million
Draft event-
plan, source
venue, service
providers and
sponsors
R500 000 Approval of
event-plan,
establish
event’s
planning
committee,
confirm
venue,
service
providers &
sponsors
R500 000 Procure and
reserve venue
and other
logistics,
international and
local sponsors
from the property
market
R2 million Marketing and
communication
s plan, set-up
dedicated
website,
marketing
campaign,
publication,
promotions
R2 million
City
marketing
and
communica
New
Indicator
R1MIL R5MIL Project plan and
source service
provider(s),
R50 000 Establish
co-
ordinating
committee
R50 000 Brand ten land-
parcels, five
buildings and one
R450 000
Brand twenty
land parcels,
ten buildings
and two
R450 000
brand
twenty land
parcels, ten
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
Promoting
trade and
investment,
with emphasis
on fixed direct
investment by
anchoring
Joburg as a
centre of
finance,
business and
trade
tion
programme
and approve
site-projects
construction site
construction
sites.
buildings
and two
constructio
n sites.
Revenue
Maximisation
programme
New
Indicator
1.Utilising
Outdoor
Advertising
Portfolio to
promote
investment in
COJ,
particular PD
areas
R650k R650k Finalise the City’s
fundraising
initiative with the
remaining outdoor
advertising
players and
embark on
“outdoor
advertising
operation cleanup
R300k Finalise the
clean-up
exercise
R350k Planning and
identification of
new outdoor sites
– advertising
precinct
Nil Planning and
identification of
new outdoor
sites –
advertising
precinct
Nil
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
Leveraging of
private sector
investment in
property
portfolio
projects.
New
Indicator
1.Potato
Sheds &
Majestic
(Newtown) &
R1Milli
on
(R50
million
invest
ment
target)
R3 million
New
Indicator
2. Jabulani
CBD Project
(Mixed-use
Development
10
R1M
(R90
million
invest
ment
target)
R3 million Theatre 75%
complete
Phase 1A
Residential
units(300)
superstructure
R250 000 Theatre
100%
complete
Phase 1A
Residential
units (300)
R250 000 Theatre opening
Phase 1B
Residential units
(300)
superstructure
Retail
R250 000 Phase 1B (300
units)
completed
Retail
development
15% complete
R250 000
10
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
R20m
Investment
complete
R30m
Investment
development
construction
started
R20m Investment
R20m
investment
New
Indicator
3. Orlando
Ekhaya
Project
(Housing and
Retail)
11
R1M
(R50
million
invest
ment
target)
R3 million Start
Construction of
Katavi
Residences
R0M investment
R250 000 Katavi
Residences
10%
complete
Start
construction
of Phase 1
Retail ( Mall
R250 000 Katavi
Residences 20%
complete
Phase 1 retail
scheme 10%
complete
R250 000 Katavi
Residences
40% complete
Phase 1 retail
20% complete
R250 000
11
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
of Soweto)
R15M
investment
R15M investment
R20M
investment
New
Indicator
4. Kgoro
(Sandton
Integrated
Development)
Project
12
&
13
&
14
R1.2M
(R25
million
invest
ment)
R6 million Finalisation of
responsibility
matrix and
management
rules
Line shop
handover
R300 000 Submission
of sect 46
application
and SDP
R300 000 Attending to
requirements for
bulk services and
finalising MOU
R300 000 SDP approved R300 000
12
High technology development, therefore less jobs created. This is a high-rise development.
13
Figures should be looked at cumulative year on year
14
This project is anticipated more than five (5) years. The balance will accrue in the following 5 years
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
Facilitating
enterprise
development
and support
through
capacity
development,
strategic
procurements
and access to
finance for
small, micro
and medium
enterprises
(SMMEs),
including
cooperatives
Emerging
industries
support
programme
New
Indicator
Develop and
Roll-out a
Property
Incubator
Programme
R1,5
million
R6 million Conduct
Research
R0,5
million
Draft
Strategy
Document
R0,2 million Conduct
Workshops &
obtain Board
Approval
R0,3 million Obtain Council
Approval &
Launch
R0,5 million
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
Encouraging
and supporting
the creation of
sustainable
work
opportunities
Implementatio
n of skills
development
and re-skilling
programmes
that are linked
to the needs of
the market
Skills
development
programme
New
Indicator
Develop and
Roll-out a
Property Skills
Programme
R1,5
million
R16,5
million
Conduct
Research &
Establish
Partnerships
R0,5
million
Draft
Strategy
Document
R0,2 million
Conduct
Workshops &
obtain Board &
Council Approval
R0,2 million Conclude
Partnership
Agreements /
MOU & Launch
R0,6 million
Championing
spatial
economic
restructuring
Area based
economic
development
programme
New
Indicator
1. Soweto
Land
Regularisation
R7
million
R27
million
Q1 - 5%
Allocation of all
occupied and
verified Council
owned
properties (100
R1,75
million
Q2 - 5%
Allocation of
all occupied
and verified
Council
owned
R1,75
million
Q3 - 5%
Allocation of all
occupied and
verified Council
owned properties
R1,75
million
Q4 - 5%
Allocation of
all occupied
and verified
Council
R1,75
million
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
for grown and
marginal
areas.
Project
properties) properties
(100
properties)
(100 properties) owned
properties
(100
properties)
New
Indicator
2. Audit of
vacant non
residential
stands
properties to
put out on
public tender
R5
million
R20
million
100%
completion of
audit (150
properties)
R2,5
million
Public
Tender for
audited
properties
R1 million
Evaluation of
tender
R1 million
Adjudication
and Award
R0,5 million
New
Indicator
Perform
highest and
best use on
developable
land owned by
R2 million Conduct highest
and best use
study for
industrial
development
R100,000 Conduct
highest and
best use
study for
industrial
R100,000 Conduct highest
and best use
study for industrial
development
zones (10 x
R100,000 Conduct
highest and
best use study
for industrial
development
R100,000
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5 Year
strategic
focus/objective
5 year
programme
Baseline Key
Activities per
IDP
Programme
2011/
12
Budg
et
Total
estimated
5 year
budget
Q1 Q2 Q3 Q4
Activity Budget Activity Budget Activity Budget Activity Budget
CoJ -
Industrial
Development
Zone.
zones (10 x
10,000 per
highest and
best use report)
developmen
t zones (10
x 10,000 per
highest and
best use
report)
10,000 per
highest and best
use report)
zones (10 x
10,000 per
highest and
best use
report)
Socio-
economic
development
programme
Implementatio
n of the
turnaround
strategy
15 %
Implementation
after the
approval
35%
implementat
ion
25%
implementation
25%
implementation
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4.1 The Turnaround Strategy
4.1.1 Background
Having been in existence for ten years, it was decided during the February 2010 strategy
session that JPC needed to develop a turnaround strategy positioning the organisation for
growth over the short, medium and longer term. Items listed for investigation were, inter alia:
? Reviewing the current business model and mandate and ascertaining whether the current
model is still applicable after the evolution of the company over the past 10 years;
? Identifying overlaps and integration with the other CoJ departments and MOEs;
? Asset Management sweating the asset to achieve greater commercial returns, without
losing the social focus;
? Investigating whether the company can take a stake and participate in property
developments; and
? Developing a financial turnaround strategy to ensure financial independence and future
sustainability.
As a result, a three phase turnaround strategy development process was kicked off in July
2010:
? Phase 1: Fact base development;
? Phase 2: Short-to-medium term strategy development; identification of quick wins and
priority organisational strengthening activities; and
? Phase 3: Long term strategy development; short-to-medium term strategy implementation.
4.1.2. Strategy overview
The turnaround strategy will ultimately enable JPC to maximise the returns of the portfolio, both
economic (capital and income growth) and social. To achieve this, JPC needs to be able to
effectively deliver on a more extensive mandate from the City.
In line with best practice, management will focus first on strengthening weak areas in the
organisation and achieving quick wins (short-to-medium term strategy), before committing to a
larger mandate (long term strategy), i.e. follow a 2 stage turnaround strategy.
4.1.3. Short-to-medium term strategy
The short-to-medium term strategy will focus on strengthening core business activities through
several initiatives:
? Clarify the high level mandate;
? Clearly define the core business;
? Align and enhance the revenue model;
[The above three initiatives will require the renegotiation of the service delivery agreement
with CoJ]
? Drive quick win revenue initiatives;
? Develop the portfolio strategy;
? Strengthen the operating model; and
? Focus on effective implementation.
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4.1.4 Clarify the high level mandate
JPC’s mandate from CoJ has to balance both social and economic goals, however, to date; the
focus of the mandate has been swayed towards financial/economic goals.
Historically, the property portfolio has made a relatively insignificant financial contribution to
CoJ. Moreover, even if CoJ property portfolio returns could match private sector benchmarks
the portfolio would be unlikely to make a significant relative financial contribution to the City.
However, the social goals of the City are highly dependent on the City’s property portfolio.
JPC’s long term aspiration going forward should thus be grounded in unlocking the socio-
economic potential of the property portfolio for the benefit of the City’s residents; this must
outweigh the purely financial objectives that have been emphasised over the elapsed medium
term.
4.1.5 Clearly define the core business
Over the short-to-medium term, JPC will focus on its three current core business services:
? Asset management;
? Property management; and
? Property development.
Within each of these three areas, the core business services has been tightly defined, and
sufficient scope has been given to expand into adjacent areas over time.
A number of property service/mandate overlaps currently exist within the City structures,
particularly with regards to Dept. Corporate Support and Shared Services, Dept. Housing,
JOSHCO and JDA. Specialist function - MOEs also perform various property related activities.
JPC utilised business definition analysis to clarify which assets should fall under JPC’s
management, as well as the proposed treatment of “grey areas”.
JPC’s core business is depicted against several descriptive axes in the figure below.
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Combining all service delineators on a single diagram for JPC reveals
a well defined and defensible core business, plus significant scope to
expand into adjacencies over the longer term
Property development
Land type
Property management
Customer
(portfolio owner)
Geography
Asset management
Manage development (construction phase)
Plan development (e.g. source contractors)
Raising of site preparation capital
Site preparation
Project identification
Site i.d.
Provincial government
Private sector
CoJ
Agricultural
Vacant
Industrial
Heritage
Social
Roads and parks
Commercial
Johannesburg
South Africa
SADC
Africa
Gauteng
Asset management plans
Valuations
Research
Fixed asset register
Portfolio
strategy
JPC
Leasing, acquisitions, sales transactions
Maintenance management
Site visits
Property administration
Management of servitudes, encroachments, etc.
Facilities management
FM services
Raising of development capital
Extended mandate
Core business
Other municipalities
Power and water
Residential
Environmental
Performance monitoring
Play role of developer (construction phase)
4.1.6 Align and enhance the revenue model
The current revenue model, initiated through the original Service Delivery Agreement with CoJ,
does not ensure alignment of interest between CoJ and JPC. As a result, JPC has been
incentivised to focus on income generating assets only, thereby neglecting the City’s non-
income generating assets.
JPC has proposed a revised future revenue model which will better align interests and provide
for industry acceptable sources of revenue. Nine revenue streams have been identified which,
at a high level, fall into three categories of revenue:
? CoJ fee for assets under management;
? CoJ commissions on revenue generating portfolio activities; and
? Third party fees and commissions.
4.1.7 Drive quick win revenue initiatives
The following quick win revenue initiatives have been identified by JPC:
? Finalising historical transactions; and
? Enhancing revenue from outdoor advertising and cell masts.
4.1.8 Develop the portfolio strategy
JPC is in the process of developing the property portfolio strategy. This involves conducting a
land audit, portfolio segmentation, true revenue/cost allocation analysis and segmental strategy
development.
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Preliminary analysis has been conducted on JPC’s current asset register, enabling a draft
segmentation, revenue/cost allocation and strategy development process to be conducted.
However, the fundamental enabler of the portfolio strategy is the information that will be
obtained about each asset through the completion of the land audit. Once this is available, the
portfolio strategy can be concluded.
Six preliminary segments have been identified within the portfolio, each consisting of a number
of similar assets and having a unique set of strategic priorities:
? Open land assets
? Service delivery assets
? Social assets
? Economic assets
? Future needs assets
? Non-strategic assets
4.1.9 Strengthen the operating model
The two areas within the operating model that most require strengthening are the organisation
design (and related human capacity) and core process efficiency.
At a high level, JPC’s future organisation design will have 3 core business units and 4 support
functions. Sub-functions within these units have been redesigned to deliver more effectively on
JPC’s mandate. This redesign requires a headcount increase from 135 to 154.
36 processes (16 of which relate to core business processes) have been identified for
clarification and potential redesign during the turnaround strategy implementation phase. This is
expected to improve turnaround times and general efficiencies.
4.1.10 Focus on effective implementation
Implementation of the short-to-medium term turnaround strategy involves a number of carefully
planned initiatives. These initiatives have been mapped out onto a high level road map, as well
as more granular action plans, detailing initiative responsibilities, timelines, key milestones, etc.
Rigorous project management of these plans will ensure effective implementation of the
strategy.
4.2 Long term strategy
The long term strategy will focus on revenue generating activities that are beyond the scope of
the current mandate from CoJ. These initiatives are anticipated to bring the economic
contribution of relevant segments of the property portfolio closer to private sector benchmarks.
Initiatives include:
? Property structure
? Land banking
? Usufruct
? Facilities management
? Property development
JPC has broadly defined the objectives, benefits, constraints, risks and potential revenue
implications for each of these initiatives, and is in the process of developing a set of more
granular business cases.
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5. RISK ASSESSMENT
The table below reflects the top eleven risks of the company.
Table 3: Risks, Mitigating actions
0
Risk
Categor
y
Objectiv
es
Risk
Descriptio
n (what is
likely to
hinder
attainmen
t of the
objective)
Background
to the risk
(root cause)
Impac
t
Likelih
ood
Inher
ent
Risk
Current
controls
(what is
currently
in place
to
mitigate
the risk)
Control
Effective
ness
Resid
ual
risk
Risk
Own
er
Actions to
improve
manageme
nt of the
risk
Action
Owner
Time scale
1 Human
Capital
Attraction
and
retention
of skills
-Lack of HR
strategy
-Ineffective HR
policies
-Salary
disparities
-Mismatch of
skills
-Inadequate
information
dissemination
by HR
Moder
ate
3 Almost
Certain
3 Ambe
r
9 -Approved
and
implement
ed HR
policies
-
Turnaroun
d strategy
-Redesign
of HR
structure
-
Organisati
on
strengthen
ing
initiatives
Good 0.
40
Green 3.
6
MD:
JPC
1. Aligning
with COJ
HR strategy
2.
Continuous
monitoring
compliance
with HR
policies
1-2.
Manager:
HR
Sep-11
2 Financial
Support
economic
developm
ent by
the
creation
of jobs,
training
etc
Inadequat
e financial
resources
-Insufficient
CAPEX and
OPEX budget
-Delayed cash
flow from
private sector
development
partner and
increase in the
Major 4 Possibl
e
5 Red 2
0
-Applied
for
additional
funding
from
external
sources
-New
revenue
Good 0.
40
Amber 8 MD:
JPC
1.
Implement
the revenue
model as
per
turnaround
strategy
2.
Collaborate
1-2. All
GMs
1.
September
2011
2.Ongoing
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utilising
the CoJ's
Property
Portfolio
by
selling,
developin
g and
leasing
the land.
cost of
construction
prices
model in
place
-Revenue
plan in
place
-MIG
funding in
place
-
Internation
al sources
identified
with
Department
s and
external
stakeholder
s
3 External
Environ
ment
Non
conducive
investment
environme
nt
-Unstable
political climate
-Labour laws
-Union laws
-Land
invasions
-Illegal
occupation of
property
-Lack of
investor
incentives
-Restrictive
supply chain
policies/legislati
on
-Poor
perception of
South Africa
Major 5 Possibl
e
3 Red 1
5
-Targeted
release of
erven and
developm
ent
properties
to
emerging
developer
s and
previously
disadvant
aged
individuals
-Constant
engageme
nt with
communiti
es and
other
stakehold
ers
-
Prohibitory
interdicts
-Physical
security
and
fencing
-Ongoing
communic
ation to
stakehold
Good 0.
40
Amber 6 MD:
JPC
1. Ongoing
communicat
ion and
education
about JPC
programs
and
achievemen
ts
2. Package
investment
deals with
incentives
3.
Continuous
release of
erven
1. GM:
Stakehold
er
Managem
ent
2. GMs:
Asset
Managem
ent,
Stakehold
er
Managem
ent and
Legal
1. Ongoing
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ers
-Process
mitigation
of
legislative
restriction
s
4 Process Support
communit
y
developm
ent
utilising
the CoJ's
Property
portfolio
Vandalism
and
inability to
maintain
facilities
-Destruction of
facilities by
vandalisms-
Abuse of social
facilities by
tenants using
them
commercial
purposes-
Unclear roles
and
responsibilities
in relation to
facility
management-
Inadequate
funding for
maintenance-
Inadequate
capacity to
monitor and
control
Major 4 Possibl
e
3 Red 1
2
-Adhoc
site
inspection
of
facilities-
Agreemen
ts with
tenants in
place-
Onsite
security
Poor 0.
90
Red 1
1
MD:
JPC
1. Request
for
additional
funding for
maintenanc
e and
security2.
Tender for
security that
would
include
cleaning at
no
additional
cost3.
Introduce
penalty
clauses for
non-
compliance
4. Evict
tenants5.
Expand
prohibitory
interdicts to
social
properties6.
Turnaround
strategy to
address
new way of
dealing with
1. GM:
Finance2.
GM:
Supply
Chain
Managem
ent3-5.
GM: Legal
1.
December
2011
2.Septembe
r 2011 3-
7 June
2012
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facilities7.
New
structure
introduces
element of
facilities
manageme
nt
5 Financial
Poor
economic
climate
-Downturn in
the property
market
-Downturn in
the financial
markets
-Tenants
unable to make
payments
-Investors
unable to raise
funding
Major 4 Possibl
e
3 Red 1
2
-Tight
monitoring
of
agreement
s
-Signature
of
addendum
s to
improve
economic
viability
and
address
developm
ental
issues
-Stricter
credit
control
policies
and
procedure
s
Good 0.
40
Green 4.
8
MD:
JPC
1. Package
more
institutional
investments
to hedge
the risk
1. All GMs Ongoing
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6 Process Insufficient
facilities to
support
community
developme
nt
objectives
-Inability to
attract
investors to
invest in social
properties
-Insufficient
funds
Moder
ate
3 Possibl
e
3 Ambe
r
9 -
Incorporat
ed social
requireme
nts into
developm
ent
agreement
s with the
private
sector
Good 0.
40
Green 3.
6
MD:
JPC
1. Engage
private
investors
2. Source
donor
funding
3. Engage
ward
counsellors
to identify
community
needs
4. Release
land parcels
for social
and
community
developmen
t
1-4. All
GMs
1-4.
Ongoing
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7 Informati
on
Manage
ment
Establish
land
strategy,
land
acquisitio
n and
land
stewards
hip in line
with
CoJ's
priorities
Incomplete
assets
register
-Property
information is
decentralised
-Lack of
integration of
LIS, Valuation
and Billing
systems
-Lack of
funding and
capacity (e.g.
human)
-Contract with
service
provider has
expired.
Major 4 Possibl
e
4 Red 1
6
-Contract
with
Intersite
on a
month to
month
basis
-A project
definition
and scope
of work
has been
finalised
-
Maintenan
ce of the
current
asset
register
-
Requeste
d budget
for
integration
-Asset
verification
exercise
by
-
Partnershi
p with
CGIS COJ
-LIS is in
place
Fair 0.
75
Red 1
2
MD:
JPC
Integration
and
maintenanc
e of COJ
asset
register
GM: Asset
Managem
ent
1.
September
2011
2.
December
2011
3. March
2012.
4 June
2012
8 Financial Loss of
revenue
-Outstanding
approved
transactions
(lease, sale,
developments,
servitudes)
-Poor internal
processes
Major 4 Possibl
e
2 Ambe
r
8 -Task
team
establishe
d to fast
track
process.
-
Monitoring
of all
Good 0.
40
Green 3.
2
MD:
JPC
1. PIMS to
go live
2. Report
monthly to
EXCO
1. GM:
Asset
Managem
ent
2. GM:
Portfolio
Managem
ent
1.
September
2011
2. Monthly
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transactio
ns to
ensure
they are
finalised
and
income
received.
9 Regulato
ry
Ensure
good
governan
ce and a
professio
nally
managed
company
Litigation -Inadequate
internal control
mechanisms
-Complex
property rights
-Restrictive
legislation
-Delays in
property
transfers and
finalisation of
contracts
Moder
ate
3 Possibl
e
3 Ambe
r
9 -Policies
and
procedure
s in line
with best
practice
-Updates
and
training on
new
legislation
-
Complianc
e
checklists
-Levels of
authority
-Board
charter
-Annual
review of
policies
and
procedure
s
-Quarterly
litigation
reports
-
Monitoring
of case
maker
system
-Targeted
Fair 0.
75
Amber 6.
8
MD:
JPC
1.
Implementa
tion
compliance
register
2. Review
of
delegation
of authority
3.
Prioritisatio
n of
conveyanci
ng and
developmen
t matters
4. Quarterly
reporting on
compliance.
5.Proper
contract
manageme
nt
1-6. GM:
Legal and
Company
Secretary
1.Septembe
r 2011
2.December
2011
3.June2012
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training
workshops
on policies
and
legislation
-
Monitoring
of
complianc
e
-City's
complianc
e register
1
0
Process All
objective
s
Inadequat
e
marketing
of the
company
-No long term
vision to
promote
products and
relevant
communication
to stakeholders
-Lack of
marketing
strategy
-Inadequate
branding
Major 4 Possibl
e
4 Red 1
6
-Ad hoc
marketing
of
products
-Draft
marketing
strategy
Fair 0.
75
Red 1
2
MD:
JPC
1. Increase
and sustain
awareness(
e.g.
regional
road shows)
2.Implemen
tation and
continuous
monitoring
and review
of the
marketing
strategy
1. GM:
Stakehold
er
Managem
ent
Ongoing
1
1
Integrity All
objective
s
Fraud and
corruption
Land invasions,
Illegal
constructions,
Fraudulent
sales, Illegal
occupation of
land parcels,
Breaching of
internal
controls
Major 4 Possibl
e
3 Red 1
2
Approved
fraud
policy,
fraud
hotline,
internal
awarenes
s
workshop Fair
0.
75
Red
1
2
MD:
JPC
1.Investigati
on
2.External
roadshow,fr
aud risk
assessment
and
reporting GM: Legal
September
2011
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6. FINANCIAL IMPACT
6.1 Key Operations by general Cost Category
Operational Expenditure
Table 4: Operational Expenditure
Key Operations Financial Impact – ZAR ‘000
S & W R & M CS GE Other Total
Salaries and wages 59 153
22 020 2 789 83 962
Etc.
Totals 59 153 22 020 2 789 83 962
The above indicates the intercepted expenditure of R 83.9 million for the year ended 30 June 2012. Salaries make up 69% of the total expenditure
budget and remaining refers to general expenses which contain fixed costs such as rental, subscriptions, and lease agreements that JPC had
entered into.
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Key Operations by general Cost Category
2007
/08
2008
/09
2009
/10
Current year 2010/11 Medium Term Revenue and Expenditure Budget
Audi
ted
Audi
ted
Audi
ted
Origi
nal
Bud
get
Adju
sted
Bud
get
Full
Year
Foreca
st
Budget
Year
Variance Estimates Estimate
s
Estimates Estimates
Outc
ome
Outc
ome
Outcome 2011/12 % 2012/13 2013/14 2014/15 2015/16
R
000
R
000
R
000
R
000
R
000
R 000 R 000 R 000 R 000 R 000 R 000
REVENUE
Property rates
Property rates - penalties imposed &
collection charges
Service charges - electricity
revenue
Service charges - water
revenue
Service charges - sanitation
revenue
Service charges - refuse
removal
Service charges - other
Regional Service Levies
Rental of facilities and
equipment
Interest earned - external
investments
253 24 8 7 7 7 8 9.8% 8 9 9 10
Interest earned -
outstanding debtors
1,28
9
1,44
1
2,08
6
Fines
Licenses and permits
Agency services 18,6
83
40,6
87
18,6
64
22,6
38
106,
413
106,413 50,387 -52.6% 41,305 43,049 45,101 47,347
Operating grants &
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subsidies
Other Revenue 5,41
5
14,7
13
68,6
99
115,
614
31,8
39
31,839 39,635 24.5% 53,152 56,002 59,397 62,898
Gain on Disposal of PPE
DIRECT OPERATING
REVENUE
25,6
40
56,8
65
89,4
57
138,
259
138,
259
138,259 90,030 -34.9% 94,465 99,060 104,507 110,255
Internal Transfers
Interest Income (Sweeping
Account)
Interest on Loans (Core)
Internal Recoveries (ME's /
Core)
Internal Recoveries (Core)
Internal Capital Grants
(MIG)
Operating Grants &
Subsidies from (COJ)
11,1
30
10,5
16
537
Total Internal Transfers 11,1
30
10,5
16
537
TOTAL OPERATING
REVENUE
36,7
70
67,3
81
89,9
94
138,
259
138,
259
138,259 90,030 -34.9% 94,465 99,060 104,507 110,255
EXPENDITURE
Employee related costs 26,6
43
31,7
78
37,6
53
75,4
80
76,1
42
76,142 59,153 -22.3% 63,175 66,650 70,316 74,183
Remuneration of Councillors
Debt impairment
Depreciation & asset
impairment
858 1,24
7
1,19
1
1,21
0
1,41
9
1,419 1,500 5.7% 1,584 1,671 1,763 1,860
Repairs and maintenance
Interest Paid : External
Borrowings
247 382 314 370 370 370 391 5.7% 413 436 460 485
Bulk purchases
Contracted services
Grants and subsidies paid –
external
General expenses 10,4
13
16,4
69
16,1
57
22,1
77
20,2
04
20,204 22,020 9.0% 22,770 24,025 25,351 26,750
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Contribution to/from
Provisions
Loss on disposal of PPE 21 385 350
DIRECT OPERATING
EXPENDITURE
38,1
82
50,2
61
55,6
65
99,2
37
98,1
35
98,135 83,064 -15.4% 87,942 92,782 97,890 103,278
Internal Transfers
Interest Expense (Sweeping
Account)
137 1,59
0
1,590 -100.0%
Interest on Shareholders
Loans
395 603 624 362 362 898 148.1% 948 1,000 1,055 1,113
Interest on Mirror Conduit
loans
Internal Charges (ME's /
Core)
850
Internal Charges (Core)
Operating Grants &
Subsidies to ME's
Total Internal Transfers 395 603 761 850 1,95
2
1,952 898 -54.0% 948 1,000 1,055 1,113
TOTAL OPERATING
EXPENDITURE
38,5
77
50,8
64
56,4
26
100,
087
100,
087
100,087 83,962 -16.1% 88,890 93,782 98,945 104,391
OPERATING DEFICIT/
(SURPLUS)
1,80
7
(16,5
17)
(33,5
68)
(38,1
72)
(38,1
72)
(38,172
)
(6,068) -84.1% (5,575) (5,278) (5,562) (5,864)
Transfers Recognised
Capital Grants
Capital Contributions
OPERATING DEFICIT/
(SURPLUS)
1,80
7
(16,5
17)
(33,5
68)
(38,1
72)
(38,1
72)
(38,172
)
(6,068) -84.1% (5,575) (5,278) (5,562) (5,864)
Less Tax (2,09
8)
4,31
0
11,4
84
11,0
70
11,0
70
11,070 1,760 -84.1% 1,617 1,531 1,615 1,704
OPERATING DEFICIT/
(SURPLUS) - after tax
(291) (12,2
07)
(22,0
84)
(27,1
02)
(27,1
02)
(27,102
)
(4,308) -84.1% (3,958) (3,747) (3,947) (4,160)
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The CAPEX allocated to JPC and Portfolio is R2 million (IT software) and R13 million (Site Development – Various properties) respectively.
The list below reflects the core projects and is not necessarily in order of priority.
Table 5: Key programme costing
5 Year Strategic Objectives IDP Programme Delivery Agenda
Total
Programme
Cost
Measured increase in sectoral diversification and growth in sectors
targeted for City Support
Sector Support
Programme
Ensuring 40% BEE participation during the
construction based on the leverage investment
8,117
Increased number of defined beneficiation projects facilitated by
the City
Beneficiation
programme
Support Urban Agriculture by the initiation of the
Disuse Land Programme
4,059
Increase in the rate of formation of new businesses Emerging Industries
support programme
Five tenders to be awarded per year to the
emerging property developers who will be
mentored and supported
4,059
Improve the profile of Johannesburg, both on the continent and
internationally, as a core centre of finance, business and trade
International positioning
programme
Positioning of JHB as a centre of investment and
to attract at least 10% international finance and
variety of scarce skills in the property and
construction transactions on CoJ land, estimated
to yield R1.0 billion private sector investment.
4,059
Increase in the City’s spend to specific targeted firms owned by
specific categories of HDI (BEE, women, youth, etc)
BEE support programme 70% of CAPEX and OPEX to be spent on BEE
firms
4,059
Increased role of co-operatives in the City economy, and increased
number of informal traders in City managed market spaces
‘graduating’ into formal businesses
Informal and community
sector support
programme
Operational support centre for BBBEE, Investor
and Property Information (JPC)
4,059
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Economic base of underdeveloped areas of the City increased
over five years
Areas based economic
development
programme
Investments leveraged to facilitate improvement in
underdeveloped areas including the South of
Johannesburg and Inner City (including Randburg
development and decking of railway line estimated
to be R250m
4,059
Increased number of beneficiaries reached by City-facilitated skills
development initiatives
Skills development
programme
1 trainee per R5 million ie.140 trainees for
R700million
1,623
Increase the spending on NGOs and CBOs targeting programmes
at vulnerable and poor households. 100% of NGOs and CBOs
have institutional and financial capacity to carry out their work in
support of the poor and vulnerable by 2015
NGO/CBO Support
Programme
The transactions relating to property related
transactions will be facilitated by JPC for the
NGOs and CBOs on behalf of the COJ.
4,059
Improved accessibility to sports and recreation facilities and
programmes, both in terms of distribution across the City and in
terms of average operating hours
sports and recreation
facilities and programme
The JPC will facilitate the awarding of all lease
agreements relating to sports and recreational
clubs on behalf of the COJ. The JPC would also
secure and maintain the facilities during the time
when such facilities are not leased.
1,623
Through both the City's own means, and in partnership with other
actors and stakeholders, deliver well-located and good quality
housing units over the next five years, which includes the delivery
rental housing units, housing units through Community Builder
Programme and mixed income housing units. Address the housing
ladder gap by facilitating private sector delivery of affordable rental
and home ownership
Housing programme
Acquisition of land for
Housing & Housing
ladder gaps programme
The JPC would acquire and make available land to
Housing Department for the development of
residential housing. JPC would also through its
property development programmes deliver low
cost housing.
8,118
Introduce the Sustainable Human Settlements approach to all new
housing developments
Sustainable Human
Settlements
Programmes (Housing
component)
4,059
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Establishment of a network of open spaces that contribute to social
and environmental opportunities
Metropolitan open space
system implementation
programme
Various projects with a high green footprint are
underway and they include: Orlando eKhaya, dam
and wetlands; Huddlepark; Pimville Golf Course
and Rietvlei Farm, Florida Lake and River park. To
achieve this in some areas the COJ exchanged
valuable land for low financial value environmental
projects
4,059
Development of an integrated asset management plan and system Asset management and
maintenance
programme
A Fixed Asset Register with 100% level of
completeness and accuracy has been compiled.
The Land Regularization information component
will be added to the Fixed Asset Register.
4,059
Improved understanding of future revenue risks and opportunities Future revenue
optimisation programme.
8,117
100% of CoJ Compliance with all relevant legislation Legal support and
compliance programme
Development of a land/property acquisition,
land/property management and utilization and
land/property disposal policy; in line with the
Government wide Immovable Asset Management
Act.
4,059
Achieve clean audit Financial Management
programme
? Management of control environment to
ensure maintenance
of a clean audit;
? Implement programmes that ensure
compliance with applicable standards
? 100 % Clean audit report
4,059
Timeous, relevant information dissemination to stakeholders City marketing and
communication
programme
Initiatives and communication focused on key
stakeholder viz. Council, Mayoral, MOEs, CoJ
Departments, General Public, Property Industry,
Other spheres of government. Satisfaction level of
75% expected
2,435
A record of active mutually beneficial, interactions with selected
sister cities
Sister City and
international relations
programme, Protocol
development
programme.
Formation of public sector property/ real estate/
immovable assets forum. Plans are underway to
sister with international companies for interaction
and future adoption of best practice standards
2,435
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6.2 Capital Expenditure
Table 6: Operational Capital
EXPENDITURE APPROVED BUDGET
2010/11
R’000
BUDGET 2011/12
R’000
ESTIMATE BUDGET
2012/13
R’000
ESTIMATE BUDGET
2013/14
R’000
Computers 1 600 1 200 1 100 1 100
Furniture 200 300 400 400
Capital improvements 200 500 500 500
TOTAL 2 000 2 000 2 000 2 000
6.3 Service Delivery Budget Implementation Programme
Not Applicable to JPC
6.4 Revenue and Tariff Analysis
Not applicable to JPC
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7. HUMAN CAPITAL
7.1 Staff Establishment
The company currently conducts its business with a staff complement of 128 employees. This
includes 14 short-term contractors. Additional temporary workers are intermittently employed
through labour brokers to address staff shortages in certain departments.
JPC as an organisation has grown significantly over the past decade and it has therefore
become necessary to realign itself to the strategic intent of the organisation. Failure to do so
results in an organisation being unable to achieve its strategic goals and inefficiencies result.
The main objective of the proposed Turnaround Strategy is to strengthen the core business.
The proposed organisational design, in support of the Turnaround Strategy, makes provision for
additional positions at mid-management level, compared with a historically predominantly
administrative heavy structure.
The following core departments will remain, namely Asset Management, Property Management
and Property Development. The support units will be: Finance, Corporate Services, Human
Resources and Chief Operating Officer.
The existing JPC structure consisted of 135 positions while the proposed structure has
increased to 149 positions.
To address the operational needs in the short-term, the following human capital interventions
will be undertaken:
1. Filling of critical positions through internal recruitment. This is in line with the JPC
recruitment and selection policy.
2. Filling of critical positions through external recruitment (buy strategy). External recruitment
will only be initiated in instances where suitably qualified candidates could not be identified
from within.
3. We will continue to focus on a build strategy by seconding employees to more critical roles
(lateral interim moves) and making acting appointments in line with policy requirements.
Greater emphasis will be placed on training initiatives and allocating bursaries. A review of
critical leadership roles will be undertaken with a focus on development of succession
candidates. This will enable JPC to grow its own skills over time.
The table below illustrates the staff numbers in terms of the proposed structure.
Department Actual Head Count
Proposed
Structure Predicted Variance
1 Office of the MD 3 8 5
2 Asset Management 8 16 8
3 Property Management 31 42 11
4 Property Development 17 17 0
5
COO: Special Projects &
Risk 10 20 10
6 Human Resources 5 8 3
7 Finance 18 22 4
8 Corporate Services 22 21 -1
Total 114 154 40
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Table 7: Staff Estimates
7.2 Human Capital Expenditure
The following costs are attached to the human capital requirements in fulfilment of the JPC
operations.
Table 8: Staff Expenditure
TOTAL STAFF EXPENDITURE
SALARIES AND
WAGES
Financial
Year
2009/10
Financial
Year
2010/11
Financial Year
2011/12
Projected
Percentage
Growth/Decreas
e
47 400 000 76 142 000 59 153 000 -22.3%
The decrease from 2010/11 to 2011/12 will not affect the operational implementation of the
proposed structure.
Table 9: Expenditure on Contracted Services
CONTRACTED SERVICES (Consultancy Services)
SERVICES
RENDERED
Previous
Financial
Year
2009/10
Current
Financial
Year 2010/11
Next Financial
Year 2011/12
Projected
Percentage
Growth/Decreas
e
TOTALS
4 562 000
6 685 000
8 365 000
20% increase
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Table 10: Staff Expenditure vs. Operational Expenditure
RATIO OF STAFF TO OPERATING EXPENDITURE
Previous
Financial
Year
2009/10
Current
Financial
Year
2010/11
Next Financial
Year
2011/12
Projected
Percentage
Growth/Decreas
e
STAFF
EXPENDITURE 47 440 000 76 142 000 59 153 000 -22.3 %
TOTAL OPERATING
EXPENDITURE 71 035 000 100 087 000 83 962 000 -17.0%
RATIO 66.8% 76.0% 71% -39.3%
7.3 Employment Equity
JPC as an employer fully subscribes to the purposes and intent of the Employment Equity Act
no. 55, 1998. Reports are submitted annually to Department of Labour.
Table 11: Employment Equity
Categories
Male Female
Total
A C I W A C I W
Managing Director 0 0 0 0 1 0 0 0 1
Senior Managers 6 0 1 3 1 1 1 0 13
Middle Managers 7 0 1 2 5 0 1 0 16
Junior Managers 11 0 1 4 13 2 1 3 35
Semi-Skilled Staff 10 0 0 0 28 5 1 5 49
TOTAL 34 0 3 9 47 9 4 8 114
JPC is committed to the principles of equity, anti-discrimination and diversity as enshrined in the
Constitution of the Republic of South Africa and the Employment Equity Act (EEA) No 55 of
1998. Gender mainstreaming, youth programmes, succession planning and retention have
become some of the key drivers in managing the manpower strategies at JPC. More so,
employment equity strategies have become a course for action to promote equality amongst
employees and help towards the development of future competent leaders in the Property
Industry.
Designated group status may be used as a tie-breaker in recruitment process, to ensure that
where two suitably qualified job candidates are available, we may prefer to appoint the
employee from a designated group, if that group is under-represented in that position or
occupation.
A revised EE policy was introduced in the past financial year where the following broad targets
were established:
o Current target base = 65/35%
o Planned target base = 80 /20%
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The JPC Employment Equity and Training and Development Committee was officially elected
and appointed towards the latter part of the 2010/2011 financial year. To date, awareness
sessions were conducted; consultation at all levels took place and adequate capacitation of the
forum was given priority. The Committee has developed its own Constitution and is
aggressively promoting the finalisation of the EE Plan by the JPC management.
The 2011/2012 financial year will accordingly see the implementation and the effective
monitoring and evaluation of the plan.
Below are some of the principles which guide the planning process:-
? JPC strives to create an open, fair and democratic workplace based on human dignity,
freedom and equality;
? JPC is committed to the principles of equity, non-discrimination and diversity as enshrined in
the Constitution of the Country and the EEA;
? JPC will seek to create a workplace that reflects the diversity of South African society, and
contributes to maximising the human resource potential of all people;
? JPC commits itself to apply employment equity as a means to promote equity in the
workplace;
? Employment equity measures will be designed to ensure that suitably qualified people from
designated groups have equal opportunities in employment and advancement;
? JPC’s commitment to employment equity is based on two key principles:
o The recognition that the disparities inherited from the apartheid past created
inequalities for the majority of the population and that these disparities require
redress
o JPC core principles are drawn from the Constitution, social legislation and
shared values of the organisation’s stakeholders and staff
? JPC believes that the essence of non-discrimination lies in the creation of fair opportunities
for all in the society, and in particular those who are or have been discriminated against on
the basis of race, gender, sexual orientation or other arbitrary or unjustifiable grounds;
? JPC will implement this policy using an inclusive approach that addresses both numerical
targets and non-numerical processes; i.e. affirmative action measures;
? Overall targets set for the JPC will inform departmental targets;
? Employment equity constitutes a major change initiative and will be managed as such;
? The policy will endeavour to facilitate the involvement of all stakeholders, and their roles will
be clearly outlined;
? Effective processes and structures will be put in place to monitor and evaluate the success
of the employment equity programmes in a transparent and participative manner. The
numerical targets and non-numerical objectives are to form part of Management’s
Performance Contracts;
? Preference in future appointments for groups that are under-represented in the different
occupational levels/categories will form part of a key feature in the implementation of the
JPC’s EE Policy;
? In accordance with Section 15(4) of the EEA, nothing in this policy requires JPC to take any
decision concerning an employment policy or practice that would establish an absolute
barrier to the prospective or continued employment or advancement of people who are not
from designated groups.
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Gender Mainstreaming Programme
The City of Johannesburg’s (hereafter CoJ or City) Gender Mainstreaming Programme (GMP)
began in earnest in May 2008 and since them much progress has been achieved. The progress
made bodes well for the roll-out process which is planned in the three year lifespan of the
project. The GMP broadly aims to ensure that gender becomes mainstreamed into the process,
systems, policies and organisational culture of the City of Johannesburg, across Core
Departments and Municipal Owned Entities.
This programme will consolidate the many gender initiatives undertaken within the City, which
have mostly lacked institutionalisation and have been poorly popularised. These initiatives have
remained fragmented along department /institutional lines and, consequently, the monitoring of
these programmes and the assessment of their impact has also remained fragmented. Through
the GMP these initiatives will be examined against the objectives and key deliverables of the
Programme.
A key strength of the GMP is that is focus lays both in internal and external communities of the
City. As a result of this two-pronged focus, the Programme has two main departmental drivers,
namely the Departments of Corporate and Shared Services.
The main objectives of the Gender Mainstreaming Programme are:
? To finalise the gender policy of the City of Johannesburg.
? To work with all departments and units of the City in developing gender action plans.
? To build capacity for the implementation of these plans through on-the-job training.
? To monitor and evaluate implementation of the Gender Policy.
? Present the Draft Gender Policy to the Executive Management Team
? Gender Policy be finalised and adopted by the Council
? Gender indicators be included in the current IDP planning process, and
? Structures and roles and responsibilities around gender mainstreaming need further
interrogation.
? Hold capacity building workshops for the Gender Focal Points
7.4 Staff turnover / movement during previous financial year 2011/12
Table 12: Staff Turnover
Staff
Movements
African Coloured Indian White
Totals
Male Female Male Female Male Female Male
Femal
e
Recruitment 8 6 1 3 18
Promotion 0
Resignation 3 1 4
Early Retirement 0
Retirement 0
Retrenchment 0
Medical Boarding 0
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Staff
Movements
African Coloured Indian White
Totals
Male Female Male Female Male Female Male
Femal
e
Dismissal 1 1 1 3
Death 0
Contract Expiring 3 1 4
Grand Total 15 7 1 4 1 1 29
7.5 Employee wellness programmes
JPC’s employee Wellness Committee previously comprised of dedicated employees who
performed duties voluntarily towards the goal of managing the social wellness side of JPC’s
manpower. The voluntary employee wellness team changes participation on an annual basis, in
order to provide opportunities to other staff members who have a passion towards such social
courses.
A significant milestone has been achieved during the 2010/11 financial year in that the company
managed to establish an official OHASA committee. The structure is still at its infant stages and
interventions based on capacitation of the forum members are currently being undertaken.
JPC in the interim still continues to seek the assistance of the CoJ’s OHASA department, in
particular where there is need for the services of a medical doctor or a professional counsellor
to assist employees in the workplace. In addition, JPC participates in all peer education
workshops and currently has two skilled peer coordinators who are able assist to staff in
managing their HIV and Aids status.
The company actively participated and will continue to support World Aids Day on the 1
st
of
December and other important awareness campaigns such as World breast cancer day and
World tuberculosis day.
The impending move of the JPC to new office premises will ensure that OHASA is appropriately
positioned to deliver amongst other employee wellness imperatives, on the provisions of the
Occupational Health and Safety Act.
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8. APPENDIX
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Johannesburg Property Company
DRAFT MEDIUM TERM REVENUE AND EXPENDITURE
BUDGET FOR 2011/12 - 2015/16
2007/08 2008/09 2009/10 Current year 2010/11 Medium Term Revenue and Expenditure Budget
Audited Audited Audited
Original
Budget
Adjusted
Budget
Full
Year
Forec
ast
Budget
Year
Varia
nce
Estimates Estimates Estimates
Estimate
s
Outcome Outcome Outcome 2011/12 % 2012/13 2013/14 2014/15 2015/16
R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000
REVENUE
Interest earned - external investments 253 24 8 7 7 7 8 9.8% 8 9 9 10
Interest earned - outstanding debtors 1,289 1,441 2,086
Agency services 18,683 40,687 18,664 22,638 106,413
106,4
13
50,387
-
52.6
%
41,305 43,049 45,101 47,347
Other Revenue 5,415 14,713 68,699 115,614 31,839
31,83
9
39,635
24.5
%
53,152 56,002 59,397 62,898
DIRECT OPERATING REVENUE 25,640 56,865 89,457 138,259 138,259
138,2
59
90,030
-
34.9
%
94,465 99,060 104,507 110,255
Internal Transfers
Operating Grants & Subsidies from (COJ) 11,130 10,516 537
Total Internal Transfers 11,130 10,516 537
TOTAL OPERATING REVENUE 36,770 67,381 89,994 138,259 138,259
138,2
59
90,030
-
34.9
%
94,465 99,060 104,507 110,255
EXPENDITURE
Employee related costs 26,643 31,778 37,653 75,480 76,142
76,14
2
59,153
-
22.3
63,175 66,650 70,316 74,183
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%
Depreciation & asset impairment 858 1,247 1,191 1,210 1,419 1,419 1,500 5.7% 1,584 1,671 1,763 1,860
Interest Paid : External Borrowings 247 382 314 370 370 370 391 5.7% 413 436 460 485
General expenses 10,413 16,469 16,157 22,177 20,204
20,20
4
22,020 9.0% 22,770 24,025 25,351 26,750
Loss on disposal of PPE 21 385 350
DIRECT OPERATING EXPENDITURE 38,182 50,261 55,665 99,237 98,135
98,13
5
83,064
-
15.4
%
87,942 92,782 97,890 103,278
Internal Transfers
Interest Expense (Sweeping Account) 137 1,590 1,590
-
100.0
%
Interest on Shareholders Loans 395 603 624 362 362 898
148.1
%
948 1,000 1,055 1,113
Internal Charges (ME's / Core) 850
Total Internal Transfers 395 603 761 850 1,952 1,952 898
-
54.0
%
948 1,000 1,055 1,113
TOTAL OPERATING EXPENDITURE 38,577 50,864 56,426 100,087 100,087
100,0
87
83,962
-
16.1
%
88,890 93,782 98,945 104,391
OPERATING DEFICIT/ (SURPLUS) 1,807 (16,517) (33,568) (38,172) (38,172)
(38,17
2)
(6,068)
-
84.1
%
(5,575) (5,278) (5,562) (5,864)
Less Tax (2,098) 4,310 11,484 11,070 11,070
11,07
0
1,760
-
84.1
%
1,617 1,531 1,615 1,704
OPERATING DEFICIT/ (SURPLUS) - after
tax
(291) (12,207) (22,084) (27,102) (27,102)
(27,10
2)
(4,308)
-
84.1
%
(3,958) (3,747) (3,947) (4,160)
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GLOSSARY OF TERMS
TERM DETAIL
CoJ Council
JPC Joburg Property Company
JDA Joburg Development Agency
JoshCo Joburg Social Housing Company
NGO Non Government Organisation
MOE Municipal Owned Entity
WSP Workplace Skills Plan
ATR Annual Training Report
SAPOA South African Property Owners Association
GIS Geographic Information System
LIS Land Information System
PIMS Property Information Management System
OPEX Operational Expenditure
CAPEX Capital Expenditure
MFMA Municipal Finance Management Act
IDP Integrated Development Plan
GDS Growth & Development Strategy
doc_363478291.pdf