SERVICE DELIVERY MECHANISMS OF LOCAL GOVERNMENT. INCA 2004 SUMMER SCHOOL . THIS PRESENTATION:. Distinguishing the service authority and the service provider roles The process for determining an appropriate service delivery mechanism Internal mechanisms External mechanisms.
INCA 2004 SUMMER SCHOOL
A service authority is responsible for “administering” a function. This responsibility should be distinguished from regulation and service provision. For example, municipalities are service authorities for water. The Department of Water Affairs and Forestry functions as a regulator. The service provider could be the municipality but it need not be – as in the case of Mbombela Municipality or the City of Johannesburg. Hence: “A municipality has … the right to administer—the local government matters listed in Part B of Schedule 4 and Part B of Schedule 5” (Section 156 of the Constitution).
A service provider is responsible for providing “municipal services” – a term that has recently been defined in the Systems Act and broadly correlates to municipal functions that involve service provision. The service provider can be the municipality itself (if the provision is internal) or another entity (if the provision is external). The basis for the service provision is established by the Service Authority who remains ultimately responsible for the provision of the service. Chapter 8 of the Systems Act deals with service provision in detail.
= Supervisory responsibility
= Operational responsibility
DETERMINING AN APPROPRIATE
SERVICE DELIVERY MECHANISM
Entities outside the municipality
Inside the municipality
First: Undertake a STATUS QUO and NEEDS assessment then
ASSESS INTERNAL SERVICE DELIVERY MECHANISMS
on appropriate internal mechanism
to explore external mechanisms
GIVE NOTICE TO THE LOCAL COMMUNITY
First Assessment – Section 78
Service Delivery Agreements must be entered into
Any other institution or entity legally competent to operate a business activity
Conduct feasibility – section 120(4)
Section 78(3) Process
Notice and comment, plus NT, DPLG, line Department views, plus council decision – section 120(6) – Like TAI
Section 33 – notice and comment plus NT, DPLG, line Department
Procurement process under section 110 of MFMA – section 120 (7)
Entering into the agreement – section 120(1) [Like TAIII]. VFM, affordability, risk transfer. Who reviews?
Concession Contract (+BOT)CONTEXT: KINDS OF SDAs
Increasing Commercial Risk Transferto private sector
Increasing capital and operationalresponsibility to private sector