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INTERIM SERVICE DELIVERY AGREEMENT

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INTERIM SERVICE DELIVERY AGREEMENT Powered By Docstoc
					                                    [Logo for __________________
                                      Local Municipality]




     INTERIM SERVICE DELIVERY
            AGREEMENT

                    entered into by :


        AMATHOLE DISTRICT MUNICIPALITY
                      ('the ADM')


                          and


          AMAHLATI LOCAL MUNICIPALITY




with regard to the provision of municipal health services
                                      2




                          TABLE OF CONTENTS

                                                        Page

      Preamble                                                 4-5

1.    Parties to the Agreement                                 5-6
2.    Interpretation                                           6–9
3.    Provision of municipal health services                     9
4.    Assignment of health services by MEC for             9 – 11
      Health
5.    Continued provision of health services                    11
6.    Compliance with Part 2 of Chapter 8 to the          11 - 12
      Municipal Systems Act
7.    Duration and renewal of the Agreement                     12
8.    Continuing responsibility for provision of                12
      municipal health services
9.    Area to be provided with municipal health           12 - 13
      services
10.   Nature of municipal health services                       13
11.   Use of assets, facilities and equipment             13 - 15
12.   Funding for municipal health services               15 - 18
13.   Annual financial escalation                               18
14.   Budget cycle and process requirements               18 – 19
15.   Liability for legal claims                          19 - 20
16.   Financial management                                20 - 21
17.   Fees and tariffs in respect of municipal health     21 - 22
      services
18.   Key performance indicators and monitoring                 22
19.   Planning and performance of obligations             22 - 23
20.   Reporting requirements                                    23
21.   Termination of Agreement                                  24
22.   Variations to the Agreement                               24
                                     3


23.   Breach of Contract                         24 - 25
24.   Dispute Resolution                         25 – 26
25.   Force Majeure                              26 - 27
26.   Domicilium and Notices                     27 - 28
27.   Interruptions and suspension of services       28
28.   General                                    28 - 29
SCHEDULE 'A'                                         31
SCHEDULE 'B'                                         32
SCHEDULE 'C'                                     33 – 35
SCHEDULE 'D'                                         36
SCHEDULE 'E'                                         37
SCHEDULE 'F'                                         38
                                         4




PREAMBLE


Whereas :


(a)   The ADM is required to perform and exercise the functions and powers
      with regard to municipal health services in terms of Section 84(1)(i) of
      the Local Government :            Municipal Structures Act, 1998 ('the
      Municipal Structures Act');


(b)   The National Health Act, 2003 requires that :


      (i)     In terms of Section 32 (1), the ADM must ensure that
              appropriate municipal health services are effectively and
              equitably provided in its area;


      (ii)    In terms of Section 32 (2), the member of the Executive Council
              responsible for health in the Province of the Eastern Cape must
              assign    such   health   services   to   a   municipality   as   are
              contemplated in Section 156 (4) of the Constitution;


      (iii)   In terms of Section 32 (3), a service level agreement must
              provide for, inter alia, the services to be rendered by a
              municipality;


      (iv)    In terms of Section 34, until a service level agreement is
              concluded, municipalities must continue to provide, within the
              resources available to them, the health services that they were
              providing in the year before the National Health Act, 2003 took
              effect;
                                        5


(c)    As a result of the aforegoing, the ADM is responsible for the provision
       of municipal health services but intends to provide such services
       through an external mechanism by entering into an interim service
       delivery agreement with the Amahlati Local Municipality, as envisaged
       by Section 80(1)(a) of the Local Government : Municipal Systems Act,
       2000 ('the Municipal Systems Act');


(d)    The aforestated external mechanism is distinguishable in law from the
       potential or actual assignment by the member of the Executive Council
       concerned to the Amahlati Local Municipality of such health services
       as are contemplated in Section 156 (4) of the Constitution;


(e)    Subject to the finalisation of an assessment undertaken by the ADM in
       terms of Section 78 (1) of the Municipal Systems Act, together with the
       parties' compliance with the relevant provisions of Part 2 to Chapter 8
       of the Municipal Systems Act, the parties agree that entering into an
       interim service delivery agreement for the provision of municipal
       health services will comply with relevant legislation and will benefit the
       communities served by the parties inasmuch as existing management
       structures and operations with regard to municipal health services will
       be continued; and,


(f)    The parties desire to regulate the terms and conditions of such
       provision,


It is agreed as follows :


1.    Parties to the Agreement


      The parties to this Agreement are :


      1.1.   The ADM, being a Category C municipality established in terms of
             Section 12 of the Municipal Structures Act by way of Provincial
                                        6


            Notice No. 80, published in Provincial Gazette Extraordinary No.
            654 of 27 September 2000, as amended; and,


     1.2.   The Amahlati Local Municipality, being a Category B municipality
            established in terms of Section 12 of the Municipal Structures Act
            by way of Provincial Notice No. 80, published in Provincial Gazette
            Extraordinary No. 654 of 27 September 2000, as amended.


2.   Interpretation


     The following words shall have the accompanying meanings :


     2.1.   'Agreement' means the service delivery agreement, including its
            schedules and annexures;


     2.2.   'asset' means a movable or immovable item with a normal life
            expectancy of more than one year and that is utilised for the
            provision of municipal health services;


     2.3.   'commencement date' means the date on which the parties
            commence with the performance of obligations, as envisaged by
            this Agreement, namely 1 July 2005;


     2.4.   'constitution' means the Constitution of the Republic of South
            Africa Act, 1996;


     2.5.   'disaster' means an event, including a natural catastrophe, that
            results in the imminent or actual injury to or loss of life,
            accompanied by damage to or destruction of property, on a
            significant scale and in respect of which neither party has effective
            control;
                                      7


2.6.   'environmental        health   services'     means     municipal    health
       services;


2.7.   'facility' means any amenity or physical resource required or
       utilised by either party for the provision of municipal health
       services;


2.8.   'financial year' means a period of 12 months, commencing on the
       first day of July in one year and ending on the last day of June in
       the following year;


2.9.   'health services' means :


       2.9.1.   health care services, including reproductive health care
                and     emergency     medical    treatment,      contemplated   in
                Section 27 of the Constitution;


       2.9.2.   basic    nutrition     and      basic   health     care   services
                contemplated in Section 28 (1) (c) of the Constitution;


       2.9.3.   medical treatment contemplated in Section 35 (2) (e) of
                the Constitution; and,


       2.9.4.   municipal health services;


2.10. 'integrated development plan' means a plan envisaged in terms
       of Section 25 of the Local Government : Municipal Systems Act
       32 of 2000;


2.11. 'key performance indicator' means a principal measure of the
       successful execution by either party of the obligations contained
       in this Agreement;
                                   8


2.12. 'MEC for Health' means the member of Executive Council
     responsible for Health in the Province of the Eastern Cape;


2.13. 'MFMA'    means the Local Government : Municipal Finance
     Management Act 56 of 2003;


2.14. 'municipal health services' means :


     2.14.1.   water quality monitoring;
     2.14.2.   food control;
     2.14.3.   waste management;
     2.14.4.   health surveillance of premises;
     2.14.5.   surveillance and prevention of communicable diseases,
               excluding immunisations;
     2.14.6.   vector control;
     2.14.7.   environmental pollution control;
     2.14.8.   disposal of the dead; and,
     2.14.9.   chemical safety, but excludes port health, malaria control
               and       control        of        hazardous          substances;


2.15. 'parties' means the parties to this Agreement, being the ADM and
     the Amahlati Local Municipality, including duly authorised
     officials of either the ADM or the Amahlati Local Municipality;


2.16. 'Provincial    Department    of        Health'   means   the    Provincial
     Department responsible for Health in the Province of the Eastern
     Cape;


2.17. 'service delivery agreement' means this Agreement, entered into
     by the parties in terms of Section 80(1)(a) of the Municipal
     Systems Act; and,
                                         9


     2.18. 'termination date' means the date on which this Agreement
            expires, being 30 June 2006, subject to earlier or later
            termination or renewal, as the case may be.


3.   Provision of municipal health services


     3.1.   The Amahlati Local Municipality hereby undertakes to provide
            municipal health services on behalf of the ADM, subject to the
            terms and conditions set out in this agreement.


     3.2.   The parties expressly record that the aforestated provision is
            distinguishable in law from any potential or actual assignment by
            the MEC for Health to the Amahlati Local Municipality of such
            health services as are contemplated in Section 156 (4) of the
            Constitution, the details of which being recorded separately.


4.   Assignment of health services by MEC for Health


     4.1.   Where the MEC has assigned the administration of certain health
            services to the Amahlati Local Municipality in terms of Section
            156 (4) of the Constitution, read with Section 32 (2) of the
            National Health Act, 2003, the details of the services will be
            recorded in Schedule A, attached hereto.


     4.2.   The administration of the aforestated health services shall form no
            part of the Amahlati Local Municipality's obligations in terms of
            this   Agreement,   except   insofar   as   the   services   constitute
            municipal health services and subject to the provisions of the
            succeeding sub-paragraph.


     4.3.   In the event that any of the aforestated heath services constitute
            municipal health services, the parties shall seek agreement on the
                                     10


       following, the details of such an agreement to be recorded in
       Schedule B, attached hereto :


       4.3.1.   the identification of those municipal health services that
                will be provided by the Amahlati Local Municipality in
                terms of this Agreement;


       4.3.2.   in respect of the municipal health services identified in
                terms of the preceding sub-paragraph :


                4.3.2.1.   their budgetary requirements;


                4.3.2.2.   the source of funding therefor;


                4.3.2.3.   details of operational planning, management
                           and provision thereof; and,


                4.3.2.4.   any other matter which will facilitate the
                           provision thereof in terms of this Agreement
                           and so as not to conflict with the terms and
                           conditions of the assignment by the MEC for
                           Health.


4.4.   Until such time as the parties have agreed on all the issues
       contemplated in terms of the preceding sub-paragraph :


       4.4.1.   none of the health services administered by the Amahlati
                Local Municipality shall be provided in terms of this
                Agreement; and,


       4.4.2.   the administration of the aforestated health services shall
                remain subject to the terms and conditions of the
                assignment made by the MEC for Health, irrespective of
                                       11


                    whether such health services constitute municipal health
                    services.


5.   Continued provision of health services


     5.1.   Where no service level agreement has been concluded in respect of
            the assignment of health services by the MEC for Health, the
            Amahlati Local Municipality acknowledges that it is required to
            provide the health services that it was providing in the year before
            the National Health Act, 2003 took effect.


     5.2.   The parties record that the provision of such health services shall
            not be in terms of this Agreement, unless the parties agree
            otherwise, in which event the provisions of the preceding
            paragraph shall be applied, mutatis mutandis.


6.   Compliance with Part 2 of Chapter 8 to the Municipal Systems Act


     6.1.   In accordance with the provisions of Sections 78(1) of the
            Municipal Systems Act, as amended, the ADM confirms that it is
            undertaking the necessary assessment, the outcome of which
            being such as to provide a rational basis for entering into this
            Agreement.


     6.2.   The parties furthermore recognise the obligations imposed on
            each of them in terms of Part 2 of Chapter 8 to the Municipal
            Systems Act and confirm that they are attending to the fulfilment
            of the relevant requirements.
                                       12


7.   Duration and renewal of the Agreement


     7.1.   The rights and obligations of the parties in terms of and pursuant
            to this Agreement shall take effect from the commencement date.


     7.2.   This Agreement shall remain in force for a period of twelve (12)
            months, expiring on the termination date, provided that the
            parties may request in writing that the Agreement be extended to
            a later date, alternatively be terminated upon an earlier date.


     7.3.   It is hereby recorded that this Agreement may be terminated by
            the mutual consent of both parties, the aforesaid consent to be
            placed in writing.


8.   Continuing responsibility for provision of municipal health services


            Notwithstanding the ADM's appointment of the Amahlati Local
            Municipality for the provision of municipal health services, the
            parties recognise that the ADM remains statutorily responsible
            therefor in respect of the communities residing within its
            municipal boundaries.


9.   Area to be provided with municipal health services


     9.1.   The Amahlati Local Municipality shall provide municipal health
            services to the communities residing within the municipal
            boundaries of the Amahlati Local Municipality.


     9.2.   The   aforestated    municipal   boundaries   include   all   existing
            boundaries and as may be further demarcated during the
            operation of this Agreement.
                                       13




10.   Nature of municipal health services


      10.1. For the purposes of this Agreement, the parties hereby record
           their understanding that environmental health services refer to
           municipal health services, as defined.


      10.2. The areas of municipal health services to be provided by the
           Amahlati Local Municipality and the details of specific activities
           required to be conducted by the Amahlati Local Municipality in
           connection with each area are set out in Schedule C, attached
           hereto.


      10.3. Excluded from the Amahlati Local Municipality's provision of
           municipal health services are the following :


           10.3.1.   port health;


           10.3.2.   malaria control; and,


           10.3.3.   control of hazardous substances.


11.   Use of assets, facilities and equipment


      11.1. In order to render the municipal health services contemplated in
           terms of this Agreement, the Amahlati Local Municipality shall
           utilise the existing assets, facilities and equipment, as may
           previously have been used in terms of any national or provincial
           authorisation granted for the provision of health services.


      11.2. The assets, facilities and equipment referred to in the preceding
           sub-paragraph must be regarded as the property of the ADM and
                                   14


     shall be recorded as such in terms of the parties' respective
     financial statements and records.


11.3. Where such assets, facilities and equipment are inadequate for
     purposes of the provision of municipal health services, as may
     have been determined in accordance with any assessment or
     feasibility study conducted or commissioned by either party :


     11.3.1.   the parties shall reach agreement on the loan or transfer
               by the ADM to the Amahlati Local Municipality of such
               additional    assets,    facilities   or   equipment     as   may
               reasonably be required for the effective and equitable
               provision of municipal health services, alternatively the
               acquisition of the aforesaid assets, facilities or equipment;
               and,


     11.3.2.   the terms and conditions of the aforestated loan or
               transfer of such assets, facilities or equipment shall not
               form part of this Agreement, unless the parties agree
               otherwise.


11.4. With regard to all assets, facilities and equipment to be utilised by
     the Amahlati Local Municipality for the provision of municipal
     health services :


     11.4.1.   a comprehensive list thereof must be compiled by the
               Amahlati Local Municipality within 30 days of the
               commencement       of     this   Agreement,     unless    agreed
               otherwise, the aforesaid list indicating at least the
               following information :


               11.4.1.1.    sufficient descriptions to enable the assets,
                            facilities and equipment to be traced and
                                           15


                                 identified in terms of any existing register
                                 listings; and,


                     11.4.1.2.   such details as may be required by the ADM
                                 for purposes of complying with the MFMA.


           11.4.2.   the   issue,   licensing         and   control   thereof    shall    be
                     undertaken by the Amahlati Local Municipality, in
                     accordance     with        the     approved      budget     allocation
                     determined by the ADM in terms of sub-paragraph 14.2.


12.   Funding for municipal health services


      12.1. Within the context of funding, the parties recognise that the
           following   financial    aspects      fall   outside    the   ambit     of    this
           Agreement:


           12.1.1.   such payments as have been agreed upon by the parties
                     with regard to the insurance, licensing and training
                     necessary for the utilisation of any assets, facilities or
                     equipment loaned or transferred by the ADM to the
                     Amahlati Local Municipality; and,


           12.1.2.   the maintenance and servicing of the aforestated assets,
                     facilities or equipment.


      12.2. For the sake of clarity, the parties agree that the financial aspects
           referred to in the previous sub-paragraph shall be regulated
           otherwise than in terms of this Agreement.


      12.3. Insofar as the ADM may depend on the Provincial Department of
           Health for funding in connection with the provision of municipal
           health services :
                                     16




    12.3.1.   the Amahlati Local Municipality shall accommodate,
              within      reason,    whatever   restrictions,    limitations   or
              constraints may be placed on such funding by the
              Provincial Department of Health, provided that :


              12.3.1.1.     any      such    restrictions,      limitations    or
                            constraints shall not prevent the Amahlati
                            Local Municipality from taking appropriate
                            measures to adjust the nature of municipal
                            health        services     provided,        without
                            compromising the effectiveness or equitability
                            thereof; and,


              12.3.1.2.     the Amahlati Local Municipality may liase
                            directly with the Provincial Department of
                            Health, in consultation with the ADM, so as to
                            facilitate adequate funding for the agreed
                            municipal health services;


    12.3.2.   subject to the provisions of sub-paragraph 4.3, the ADM
              accepts responsibility for funding the Amahlati Local
              Municipality directly for the municipal health services and
              the nature and circumstances pertaining to the source of
              funding shall not affect the ADM's obligations in terms of
              this Agreement to the prejudice of the Amahlati Local
              Municipality.


12.4. The amount of funding available for the provision of municipal
     health services (hereinafter referred to as "the contract value"), as
     at the commencement date, is set out in terms of Schedule D,
     together with an indication of the source of payment of such
     contract value.
                                 17




12.5. The Amahlati Local Municipality shall identify and isolate those
     activities carried out in respect of the provision of municipal
     health services and in this regard :


     12.5.1.   all income derived therefrom shall be remitted to the ADM
               and shall be reflected in the ADM's accounting records;
               and,


     12.5.2.   the details of all expenditure incurred as a result thereof
               shall be submitted to the ADM and shall be reflected in
               the ADM's accounting records.


12.6. Any surplus or deficit funding at the end of the financial year
     shall be reflected as a debtor- or creditor balance, as the case may
     be, in the financial statements and records of the ADM.


12.7. The parties agree that the ADM may provide such additional
     funding and related resources as may be reasonably required by
     the Amahlati Local Municipality in order to enable it to render the
     municipal health services consequent to the occurrence or onset
     of a disaster or any similar situation that results in the available
     funding being patently insufficient for the purposes of this
     Agreement.


12.8. The funds due in terms of this Agreement shall be remitted by the
     ADM to the Amahlati Local Municipality :


     12.8.1.   In quarterly payments or four instalments in advance and
               on or before the commencement of the financial year; and,


     12.8.2.   By the 5th working day of each applicable month and after
               the Amahlati Local Municipality submission of a report for
                                          18


                      the previous quarter and in accordance with an approved
                      cash flow programme to be agreed upon by the parties.


      12.9. The quarterly payments will be made by the ADM to the Amahlati
           Local Municipality by means of an electronic transfer of funds
           directly into the Amahlati Local Municipality's banking account.
           For purposes of this Agreement, in general, the banking details of
           both parties are set out in Schedule E.


13.   Annual financial escalation


      13.1. The funding referred to in the previous paragraph shall be
           increased annually by a percentage to be agreed upon by the
           parties.


      13.2. Notwithstanding the previous sub-paragraph :


           13.2.1.    the parties may, from year to year, agree in writing on a
                      higher or lower rate of increase; and,


           13.2.2.    any such increase shall be directly related to the rate of
                      increase applicable to the funding obtained by the ADM
                      from the Provincial Department of Health for the provision
                      of municipal health services in terms of the National
                      Health Act, 2003;


14.   Budget cycle and process requirements


      14.1. For the purposes of this Agreement, the Amahlati Local
           Municipality shall submit an annual business plan and an
           estimated budget to the ADM for consideration and approval not
           less than nine (9) months prior to the commencement of the
                                      19


           financial year.


      14.2. The ADM shall provide an approved budget allocation to the
           Amahlati Local Municipality not less than six (6) months prior to
           the commencement of the financial year.


      14.3. The Amahlati Local Municipality may adjust its annual business
           plan and budget in the event that the approved budget allocation
           provided by the ADM differs from the estimated budget submitted
           by the Amahlati Local Municipality, any such adjusted budget
           remaining subject to approval by the municipal council for the
           Amahlati Local Municipality, as contemplated in terms of the
           MFMA.


      14.4. Any budget, as adjusted and approved by the Amahlati Local
           Municipality in accordance with the ADM's approved budget
           allocation, shall be :


           14.4.1 provided to the ADM and adopted by the ADM in terms of
                   its mid-year review; and,


           14.4.2 utilised as the basis upon which the Amahlati Local
                   Municipality's activities in terms of this Agreement will be
                   monitored.


15.   Liability for legal claims


      15.1. Responsibility for payment of damages and the costs of litigation
           arising from the negligent provision of municipal health services
           will be shared equally by the parties to this Agreement.
                                           20


      15.2. Notwithstanding the preceding sub-paragraph, liability for the
           payment of damages and costs of litigation will be imputed to the
           party found culpable of gross negligence.


16.   Financial management


      16.1. The parties agree that the Amahlati Local Municipality shall :


           16.1.1.   manage its own accounting, financial management,
                     budgeting, investment and borrowing activities with
                     regard to the provision of municipal health services; and,


           16.1.2.   the aforestated management shall be effected subject to
                     the MFMA.


      16.2. Whereas     the      parties   recognise   that   the   Amahlati   Local
           Municipality's operating budget is prepared annually and in
           accordance with the provisions of the MFMA and further recognise
           that the Amahlati Local Municipality's Health Department budget
           is prepared as a component of the Amahlati Local Municipality's
           budget, the Amahlati Local Municipality undertakes the following
           in respect of the provision of municipal health services :


           16.2.1.   all expenditure will be accompanied by authorisation and
                     will be disbursed strictly in compliance with municipal
                     standing orders, applicable by-laws and the MFMA;


           16.2.2.   the budget and treasury office will exercise control
                     measures and shall ensure that :


                     16.2.2.1.     appropriate budget provision and authority
                                   will exist for all expenditure; and,
                                         21


                     16.2.2.2.    all funding from the ADM in respect of
                                  municipal health services will be received,
                                  banked and recorded.


           16.2.3.   The municipal manager, in his or her capacity as
                     accounting officer, will accept ultimate responsibility for
                     the   proper     administration     of    the   Amahlati     Local
                     Municipality's finances;


           16.2.4.   The   internal    audit     unit   will   regularly     review   all
                     management controls with regard to funding received
                     from the ADM; and,


           16.2.5.   The Amahlati Local Municipality will comply with all
                     reasonable     conditions     or   guidelines    that     may    be
                     stipulated by the ADM in order to exercise a measure of
                     control over the funding.


17.   Fees and tariffs in respect of municipal health services


      17.1. Where appropriate or deemed necessary by its budget and
           treasury office, the Amahlati Local Municipality may levy and
           collect service fees from the users of municipal health services,
           provided that the aforestated service fees are :


           17.1.1.   in accordance with the ADM's tariff policy and comply
                     with the Amahlati Local Municipality's credit control
                     measures; and,


           17.1.2.   not in conflict with national and provincial norms, policies
                     and procedures.
                                        22


      17.2. The ADM may set, review or adjust the tariffs contained in its
           tariff policy, subject to prior consultation with the Amahlati Local
           Municipality insofar as the tariffs pertain to the provision of
           municipal health services.


      17.3. Notwithstanding the preceding sub-paragraphs, the Amahlati
           Local Municipality may adjust its service fees, subject to the
           directions of the ADM.


18.   Key performance indicators and monitoring


      18.1. With regard to the provision of municipal health services, the
           parties shall agree upon :


           18.1.1.   appropriate key performance indicators as a yardstick for
                     measuring performance;


           18.1.2.   procedures to monitor, measure and review performance
                     in terms of the key performance indicators envisaged in
                     the preceding sub-paragraph.


      18.2. Any such key performance indicators and procedures, as agreed,
           shall be detailed in Schedule F.


19.   Planning and performance of obligations


      19.1. The Amahlati Local Municipality shall develop and implement a
           detailed service delivery plan within the framework of the
           integrated development plans of both parties.


      19.2. All operational planning, management and provision of municipal
           health services shall be undertaken by the Amahlati Local
           Municipality such that the municipal health services are provided
                                         23


           effectively and equitably.


      19.3. Insofar as may be applicable, the Amahlati Local Municipality
           hereby      accepts   responsibility   for   all   customer   and   user
           management associated with the provision of municipal health
           services.


20.   Reporting requirements


      20.1. The Amahlati Local Municipality shall report on performance
           achievements and financial matters on a quarterly and annual
           basis in respect of the agreed municipal health services.


      20.2. Reports submitted by the Amahlati Local Municipality shall
           provide such information as may be required by the ADM to
           enable it to monitor and support the activities of the Amahlati
           Local Municipality.


      20.3. The Amahlati Local Municipality hereby undertakes to provide the
           ADM with all information reasonably required by the ADM to
           comply with the relevant duties imposed upon it in terms of the
           Municipal Structures Act, 1998 and the National Health Act,
           2003.


      20.4. The ADM and Amahlati Local Municipality shall jointly review
           progress with regard to the implementation of this Agreement
           during the year.


      20.5. If an interim audit is requested by the ADM, then the timing of the
           aforesaid audit will be negotiated between the ADM and the
           Amahlati Local Municipality, provided that the costs thereof shall
           be borne by the ADM.
                                           24


21.   Termination of Agreement


      21.1. Subject to the paragraphs governing the duration and renewal of
           this Agreement and breach of contract, respectively :


           21.1.1.   this Agreement may be terminated by either party upon
                     90 days' written notice to the other party, provided that
                     the terminating party has timeously consulted the other
                     party   about   its    intentions   prior   to   the   aforesaid
                     notification; and,


           21.1.2.   the aforestated termination shall not prejudice either
                     party's rights in respect of the services and obligations
                     performed until the actual date of termination.


      21.2. Where this Agreement is lawfully terminated by the Amahlati
           Local Municipality, it shall be the responsibility of the ADM to
           ensure continuity of the provision of municipal health services.


      21.3. The ADM must take over the provision of the municipal health
           service when the Agreement expires.


22.   Variations to the Agreement


      All variations to this Agreement, including amendments of financial
      allocations, may only be made by consultation and upon written
      agreement between the parties.


23.   Breach of contract


      23.1. In the event that either of the parties fails to perform its duties
           and obligations in terms of this Agreement then the other party
           ('the aggrieved party') may provide the party in default ('the
                                        25


           defaulting party') with written notice, calling upon the defaulting
           party to remedy its default within a period of 60 days.


      23.2. Subsequent to the provision of the aforesaid notification, the
           defaulting party shall take whatever steps may be necessary to
           comply with its duties and obligations, failing which the aggrieved
           party shall be entitled to cancel this Agreement by written notice
           to this effect upon the expiry of the 60 day period referred to in
           the preceding paragraph.


24.   Dispute resolution


      24.1. In the event of a dispute between the parties, they shall use their
           best endeavours, in the spirit of co-operative governance, to
           resolve   the   dispute    without   immediately   resorting   to   the
           intervention of a mediator or arbitrator, as the case may be.


      24.2. The following steps shall be taken when a dispute arises :


           24.2.1.   duly authorised representatives of either party shall meet
                     within 14 days of the dispute arising in order to resolve
                     the dispute.    A written record of the aforesaid meeting
                     shall be compiled, to be verified and approved by both
                     parties;


           24.2.2.   if the parties are unable to resolve the dispute between
                     themselves after a period of 30 days, then the parties
                     shall appoint a mediator, who will attempt to mediate
                     between the parties in order to resolve the dispute. If no
                     agreement can be reached between the parties in
                     connection with the appointment of a mediator, then a
                     mediator shall be allocated by the chairperson, at the
                     time, of the Arbitration Foundation of Southern Africa
                                   26


               ('AFSA'), the costs of the aforesaid mediator to be borne by
               the parties in equal shares; and,


     24.2.3.   the parties shall submit separate statements to the
               mediator whereupon the mediator's decision shall be
               binding upon each party.


24.3. If the aforestated mediator is unable to resolve the dispute within
     30 days of his or her appointment then either party may request
     that the dispute be referred to arbitration. Subject to both parties
     agreement to arbitration, the following steps shall be taken :


     24.3.1.   the parties shall appoint an arbitrator, alternatively
               request the chairperson of AFSA to allocate a suitable
               arbitrator;


     24.3.2.   subject to the provisions of the Arbitration Act, 1965, the
               arbitration shall be held in a summary manner in
               accordance with the rules of AFSA and with a view to
               having the dispute resolved as soon as possible;


     24.3.3.   the arbitrator's decision will be binding upon the parties
               and may be made an Order of Court; and,


     24.3.4.   the costs of the arbitration shall be borne by the parties
               in equal shares.


24.4. Nothing contained in this paragraph shall prevent either party
     from seeking urgent judicial relief in a High Court having
     jurisdiction in the matter.
                                           27




25.   Force majeure


      25.1. A party shall not be liable for any failure to perform its duties and
           obligations in terms of this Agreement if it establishes that the
           aforestated failure was as a result of the occurrence of an event
           that was beyond that party's control.


      25.2. The aforestated event includes but is not necessarily limited to the
           following :


           25.2.1.   war, civil war, armed conflict or terrorism;


           25.2.2.   natural   disasters        such   as    violent    storms,   floods,
                     earthquakes or destruction by lightning;


           25.2.3.   explosions or fires;


           25.2.4.   boycotts, strikes, lockouts or go-slows; and,


           25.2.5.   acts of authority, whether lawful or unlawful.


26.   Domicilium and notices


      26.1. For the purposes of giving any notice or the service of any process,
           the   parties    select   the        domicilium    citandi    et   executandi
           ('domicilium') respectively set out hereunder :


           26.1.1.   ADM:
                                        28


             ________________________________________________________________
             ________________________________________________________________
             ________________________________________________________________
             Telephone:                 _______________________________________
             Fax                   :           ________________________________
             Email                 :         __________________________________




             26.1.2. Amahlati Local Municipality :


             ________________________________________________________________
             ________________________________________________________________
             ________________________________________________________________
             Telephone             :    _______________________________________
             Fax                   :           ________________________________
             Email                 :         __________________________________




       26.2 Any notice required or permitted to be given in terms of this
             Agreement shall be valid and effective only in writing.


27.    Interruptions and suspension of services


      In the event of a dispute between the parties, the parties hereby record
      that neither party shall interrupt or suspend the performance of its
      respective duties and obligations in terms of this Agreement, pending the
      resolution of the dispute.


28.    General


       28.1. This document constitutes the sole record of the Agreement
             between the parties.
                                        29


     28.2. No addition, variation or agreed cancellation of this Agreement
           shall be of any force or effect unless it has been reduced to writing
           and signed by or on behalf of the parties.


     28.3. In the event that any of the terms or conditions of this Agreement
           are found to be invalid, unlawful or unenforceable, then such
           terms or conditions will be regarded as severable and the
           remaining terms or conditions shall remain of full force and effect.


     28.4. With regard to the interpretation of this Agreement and unless the
           context    otherwise    indicates,   the   following   provisions      are
           applicable:


           28.4.1.   words and phrases defined in this Agreement shall bear
                     the meaning assigned throughout this Agreement;


           28.4.2.   words and phrases used in this Agreement which are
                     defined or used in any statute that applies to the subject
                     matter contained in this Agreement shall be interpreted in
                     accordance with the applicable statute; and,


           28.4.3.   any prior drafts of this Agreement or any oral agreements
                     to this effect shall not be taken into account with regard
                     to the interpretation of the contents of this Agreement.




Signed at ____________________________ this _______ day of _______________2005.


WITNESSES :
                                        30


1.    ____________________




2.    ____________________                    _____________________________
                                              Municipal Manager : ADM




Signed at ____________________________ this _______ day of _______________2005.




WITNESSES :


1.    ____________________


2.    ____________________                    _____________________________
                                              Municipal Manager : Amahlati Local
                                              Municipality
                         31



                    SCHEDULE A


 DETAILS OF HEALTH SERVICES ASSIGNED BY THE MEC
FOR HEALTH TO THE AMAHLATI LOCAL MUNICIPALITY (sub-
                   paragraph 4.1)
                     32


                SCHEDULE B


DETAILS OF AGREEMENT IN RESPECT OF HEALTH
        SERVICES (sub-paragraph 4.3)
                                   33


                              SCHEDULE C

  MUNICIPAL HEALTH SERVICES : AREAS AND ACTIVITIES
                 (sub-paragraph 10.2)



Areas of MHS          Specific activities
Function
Water quality and     •   Mapping water resources in relation to point or
associated                diffuse pollution sources.
monitoring and        •   Protection of water sources and resources
availability              through enforcement of laws and regulations
                          related to water quality management.
                      •   Monitoring of water reticulating system.
                      •   Water sampling and testing in field or laboratory
                          (reference laboratory)
                      •   Implement health, hygiene awareness and
                          education campaigns that relate to water supply
                          and sanitation.
Food safety and       •   Food inspection at production, storage,
hygiene monitoring        distribution and consumption.
                      •   Street vending monitoring and control.
                      •   Food premises inspection and control of
                          statutory nuisances.
                      •   Enforcement of food legislation and Codex
                          Alimentarius.
                      •   Promote the safe handling, storage and
                          preparation of foodstuffs used in government
                          institutions.
                      •   Promote safe handling of meat and meat
                          products, fish and fish products.
Waste management      •   Ensuring proper refuse collection, storage and
and general hygiene       disposal.
monitoring            •   Liquid waste management including sewerage
                          and industrial effluent.
                      •   Ensuring proper storage, treatment, collection,
                          handling and disposal of health care waste and
                          hazardous waste.
                      •   Sampling and analysis of any waste or product
                          (sewerage, refuse or other waste).
                      •   Investigation and inspections on any activity
                          relating to the waste stream or any product
                          resulting therefrom.
                      •   Advocacy on appropriate sanitation (must be
                          understood to have an element of motivating for
                          programme, projects and funding).
                                     34



                       •   Control of the handling and disposal of diseased
                           animal tissue.
Premises health (all   •   Environmental Health Impact Assessment
built environment)         including housing projects and indoor air quality
surveillance               monitoring.
                       •   Assess factors like ventilation, lighting, moisture
                           proofing, thermal quality, structural safety and
                           floor space (inclusive of inner city decay)
                       •   Assessment of any overcrowding, city or
                           unsanitary conditions in any residential,
                           commercial or other occupied premises including
                           child care centres.
                       •   Prevention of unhygienic conditions or
                           overcrowding of caravan parks, camping sites
                           and holiday resorts.
                       •   Prevention and abatement of any condition on
                           any premises which is likely to constitute a
                           danger to health, including sick building
                           syndrome.
Communicable and       •   Health and hygiene promotion aimed at
environmental              prevention of environmentally induced diseases
related disease            and related communicable diseases.
control and            •   Collection, analysis and dissemination of
monitoring                 epidemiological data and information.
                       •   Use of participatory hygiene and transformation
                           Training (PHAST) approaches for effective control
                           measures at community level.
                       •   Epidemiological surveillance of diseases.
Vector monitoring      •   Application of measures under WHO
and control                (International Health Regulations Act 1974).
                       •   Identification of vectors and their habits and
                           breeding places.
                       •   Removal or remedying of conditions permitting or
                           favouring the prevalence or increase of rodents,
                           insects, disease carriers or pests.
                       •   Residual spraying of premises.
                       •   Investigate the prevalence of zoonotic diseases
                           and other vector borne diseases in the working
                           and living environment.
                       •   Surveillance of imported cargo and livestock for
                           the prevalence of disease vectors.
                       •   Serological tests of rodents, dogs and other
                           pests.
                       •   Community awareness campaign on zoonotic
                           disease and the control thereof by education and
                           training.
Environmental          •   Promotion of hygienic working and living
                                     35


pollution control          environments.
                       •   Identification of polluting agents and their
                           sources.
                       •   Conducting of environmental health impact
                           assessments.
                       •   Conducting of environmental health hazard and
                           risk mapping.
                       •   Approval of environmental impact reports.
                       •   Promoting clean and safe air.
                       •   Control and prevention of noise.
Disposal of the dead   •   Control, restriction or prohibition of :

                           * The business of a funeral undertaker or
                             embalmer
                           * Mortuaries
                           * Facilities for the storage of dead bodies
                           * Treatment, removal or transport of dead bodies

                       •   Regulating, control and prohibition of graves,
                           cemeteries, crematoria and other facilities for the
                           disposal of dead bodies.
                       •   Manage, control and monitor exhumation and
                           reburial or disposal of human remains.
Radiation, safe        •   Monitor all premises handling radioactive
energy use and             material for compliance.
transportation of      •   Ensure authorisation of premises and effective
radioactive waste,         control over materials and radioactive waste.
monitoring and         •   Ensuring proper lighting of all buildings and
control                    similar structures for human utilisation.
                       •   Ensuring safety against any form or source of
                           electromagnetic radiation.
Chemical safety        •   Listing of all operators, fumigation firms, formal
                           and informal premises, which deal with the
                           manufacturing, application, transport or sale or
                           storage of chemicals.
                       •   Issuing of licences.
                       •   Facilitating pesticide and chemical safety advice
                           and education and training.
Noise control          •   Assessment of the extent of noise pollution and
                           its effect on human health.
                       •   Facilitate noise control measures.
EHS research and
development
                                     36


                               SCHEDULE D

      CONTRACT VALUE AND SOURCE OF PAYMENT (sub-
                    paragraph 12.4)




(a)   The contract value amounts to R801,029.00


(b)   The Provincial Department of Health shall effect payment of the
      contract value to the Amahlahti Local Municipality, as contemplated in
      terms of the service level agreement concluded by the parties in
      respect of the assignment of health services by the MEC for Health.
                 37




            SCHEDULE E

BANKING DETAILS (sub-paragraph 12.9)
                       38




                   SCHEDULE F

KEY PERFORMANCE INDICATORS AND PROCEDURES (sub-
                 paragraph 18.2)

				
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