Steve Tshwete LM holds the strings together

lessons e r e siContact deta ls :

WATER INFORMATION NETWORK- SOUTH AFRICA -

WIN-SADepartment:Provincial and Local GovernmentREPUBLIC OF SOUTH AFRICA

the dplgDepartment:Provincial and Local GovernmentREPUBLIC OF SOUTH AFRICA

the dplg

Free Basic Services

Municipal ManagerTel: (013) 249-7000

Fax: (013) 243-2550E-mail:council@stevetshwetelm.gov.za

The Free Basic Services Lesson Series showcases municipal projects aimed at the accelerated implementation of government's Free Basic Services policy. Each of the booklets in the series captures the experience of a particular municipality, with the aim of providing practical illustrations of how local government is tackling the challenges associated with delivering Free Basic Services.

ocus areafocusf area

The link between KPIs, the water cycle and Free Basic Water

2 11

The Strategic Framework for Water Services (1993) sets out a number of high-level key performance indicators (KPIs)

for water services authorities and water services providers. The KPIs do not stand alone. They all relate to the water

cycle and the policy of providing Free Basic Water and Sanitation as a minimum standard. Together they hold the key

to the successful implementation of Free Basic Water; therefore it is critical for a municipality to ensure that each KPI is

attended to.

1. Abstracting water from water resources (e.g. streams, rivers, wetlands, groundwater, estuaries)

! KPIs: Water services authorities (WSAs) should have sustainable water resources to provide 6000 litres

per month x(times) number of households for at least 350 days per year.

2. Water treatment and bulk storage

! KPIs: WSAs should ensure that “all households supplied with water from formal piped water supply

systems receive water which consistently meets the defined minimum standards for potable water as

defined in SABS 241.”(now South African National Standards [SANS] 241)

3. Water distribution (through a system of pipes, connectors, meters and taps) to the consumers

! KPIs: WSAs should ensure:

# Infrastructure (pipes, connections and meters) that provides water at a minimum flow of 10 litres

per minute to communal water points within 200 metres of all households;

# Infrastructure that provides at least a basic sanitation facility to all households;

# 80% of water abstracted and/or purchased is supplied and metered. All meters are operational

and read regularly and accurately;

# Well maintained and serviced infrastructure: No burst or leaking pipe should be allowed to lead to

an interrupted service for more than 48 consecutive hours per incident.

4. Collecting, treating and discharging wastewater

! KPIs: WSAs should have wastewater collection and treatment plants that ensure the quality of the

effluent meets discharge standards, in order not to pollute the environment and water resources.

5. Consumer interface (metering, cost recovery [billing, tariffs], Free Basic Water and Sanitation,

complaints/customer care, written and spoken communication)

! KPIs: WSAs should have:? A Free Basic Water policy

# Fair and affordable tariffs

# No outstanding debt of more than 90 days

# Financial viability

# A programme to ensure that good water use and sanitation, hygiene and related practices are

effectively communicated to the community it serves (implied in the policy of Free Basic Water, but

not listed as KPI in the Strategic Framework for Water Services).

(Regulation made clear 2005: p27)

Technical Reportechnical ReportTIn the rural township that Steve Tshwete has established they make use of boreholes to supply the consumers with water. They have therefore decided not to use VIP toilets, but rather use an option that is more expensive in the short term.

The municipality uses biological toilets from Madibeng Water Services, because they do not want to run the risk of sewerage seeping through to the ground water. If that occurred, the consumers' drinking water in the rural township would be polluted.

What is a biological toilet?A biological toilet is a waterless toilet that separates the liquids from the solids.

How does it work?The solids and liquids are separated. The ventilation pipe and extraction unit extract the odour.

The unit is positioned to the north and the unit is black, which makes evaporation of liquids easy. The ventilation pipe that sends air through the system also helps with evaporation.

Initially, after installation, a packet of organic starter is put into the toilet. This gets the dehydration process started.

After a year the solids would be sufficient dehydrated so that consumers can open the unit and use the dehydrated matter as fertiliser in their gardens.

Biological toilets come in three models. The one model is suitable for a household of 8 to 10 people daily, a second model can be used by 25 people daily and a third model can be used by 40 people daily. The last two models are suitable for schools or mines.

A unit has a 25 year lifespan when used correctly. No grey water or any other waste should be dumped into the toilet. Users of this toilet should only use toilet paper, because it is more bio-degradable than other materials. Steve Tshwete Municipality supplies consumers with toilet paper.

What are the advantages? ! It does not pollute the ground water.! It has a 25 year lifespan, if used correctly.! It can be used in RDP housing, because it can be

built in.! It is odourless if used correctly. ! It can never fill up.! The end product can be used as fertilizer.

What are the disadvantages?! Incorrect use will affect the lifespan. Training is

needed to inform customers of the correct use of these toilets.

! It is more expensive than VIPs initially.

Fertilizer After one year the dehydrated matter can be used on shrubs and trees in the garden. When consumers want to use this as fertilizer for vegetable gardens, it should be heated to 65° Celsius.

Biological toilets

Side view of the biological toilet.

The biological toilet with the black unit facing north.

10 3

Introducing ntroducing IQuestions & AnswersQuestions & AnswersHow do you detect illegal connections?

How do you decrease your illegal connections to less than 10 a month?

What action should be taken when an illegal connection is found?

How do you solve water supply problems or expensive bulk water?

How do you ensure that people pay regularly for water and sanitation services / increase the payment rate?

How do you avoid escalation of debt?

How do you get people to think that the water and sanitation account they receive is 100% credible?

How do you get consumers to be positive towards the municipality?

! If your municipality has deviation reports that show the unaccounted for water per area, you could pick up illegal connections on this report.

! Obvious consumption, for example, green gardens versus low water consumption. ! Tip off from water meter readers, neighbours etc.

! Meter readers are the council's allies. They are the eyes and ears of the municipality and report all suspicious looking connections.

! Every single illegal connection must be seen as one too many.! Action is taken immediately when an illegal connection is reported or picked up. ! Cash rewards are given to anyone who reports an illegal connection

! Disconnect the illegal connection immediately.! Phone the police and have the police present when you explain why the connection is illegal.! Give a fine for the illegal connection on the premises.! A fine for reconnection should also be paid by the owner of the property.! Label the perpetrator's account.

! Look at the environment surrounding your municipality and explore whether there is a possible partnership that could be formed to fulfil each party's needs in terms of the water supply.

! Consistency e.g. regular bills on the same day each month! Do not use estimates ! Meters in working order! Reward the community with facilities! Accessible pay points open at convenient hours! Friendly employees! Zero tolerance of those who do not pay

! Address arrears immediately. Do not allow debt to accumulate.

! No estimates of water readings where possible! Immediate replacement of broken or stolen water meters! Clear and understandable accounts! Immediate action where there are complaints! Regard all customers as important and give them with the same attention, whether they are poor or rich.

! Communicate continuously with the consumers with messages on the accounts or use other communication channels.

! Reward consumers with facilities, such as, public swimming pools or more frequent refuse removals. ! Give the consumers ample opportunity to complain when they are not content with services received. ! Take action and resolve complaints. Consumers want to see that something is done about things they are

unhappy about.

Sanitation backlog: 17.56 %( provincial backlog is 43%)Reference: DWAF

40 872 households in this municipal area.

Reference: DWAF

Five rural townships are being planned,

of which one (Doornkop) has been completed.

Water Services backlog: 5.4% (provincial backlog is 13%)Reference: DWAF

The municipality has sufficient water. Its most important river is the Klein Olifants. The

Usuthu-Vaal system is its backup system. The municipality has four major dams and it

runs its own water purification works.

For the Eskom villages Steve Tshwete buys potable water from Eskom,

which it reticulates to consumers at the same tariff structure as the rest of

the municipality.

Steve Tshwete Local Municipality is situated in Mpumalanga and comprises the towns of Middelburg and Hendrina, the

township Mhluzi, a large informal settlement area, Newtown, the Eskom villages (Rietkuil, Komati, Blinkpan, Pullenshope, and

Koornfontein) and a large farming area.

Middelburg

Hendrina

Steve Tshwete LM Steve Tshwete LM

4 9

Steve Tshwete LMSteve Tshwete LMSteve Tshwete LMSteve Tshwete LM

Steve Tshwete Local Municipality has managed to hold the strings of Free Basic Water implementation together by dealing successfully with a number of common challenges that municipalities face.

Prioritising water meters eliminating unaccounted for water and generating incomeMiddelburg Munic ipal i ty (now Steve Tshwete Municipality) was one of the first municipalities to amalgamate and have a black mayor. In the days before the amalgamation took place, Mhluzi paid a flat rate of R38/39 per household for water per month, excluding electricity.

The municipal manager, Mr Willie Fouché, explained: “When the first budget was drawn up in 1995, we insisted that we had to move away from the flat rate. In 1995 a water tariff was introduced; it was decided that the tariff should not be more than 10% higher than the previous flat rate”.

A huge challenge, however, was to put in the water meters. In most areas there were none; or in the areas where there were water meters, they were either not used or out of order. When municipalities were invited to apply for grants from DWAF to meet immediate needs, Steve Tshwete Municipal i ty, then Middelburg Municipality, applied for a grant of R2 million to install water meters. “At that stage we were frowned upon. Most municipalities asked for money to build infrastructure,” said Willie Fouché.

“We invested in something that would generate an income,” commented Webster Austin, the city engineer.

The argument put forward was that with the installation of water meters, accurate meter readings could be done thus enabling the municipality to minimise water wastage and simultaneously generate an income, which could be used to extend their services. Four local contractors were trained to install the water meters.

A company was then contracted to read the meters monthly. Meter books were used to write up the readings. It was however not always smooth sailing for the municipality. When the first accounts went out, there were about 50 complaints about the meter readings.

“The meter readers and Councillors loaded the meter books into their bakkies, and off they went to each and every complainant to sort out the issues”, the Municipal Manager remembered. In most cases high readings could be traced to continually running toilets and taps, which consumers were helped to fix. It was also established that consumers found the accounts difficult to understand and they were immediately revised to make them easier to read. This action set the high standard for good service to all customers that the municipality still strives to provide.

Today, according to Willie Fouché, accounts have 100% legitimacy. “Accounts are credible and because of that they are seldom questioned.”

The payment rate of the municipality is an astounding 98% for the 2005/2006 financial year.

“Water readings are taken monthly. As far as possible no estimates are used. Only when a water meter is broken or when a reading cannot be taken, an estimate is used,” explained Frans Naudé, the financial manager.

The water meter reading company is regarded as a close ally. If a water meter reader experiences any problem reading a meter he sticks a brightly coloured note from “your friendly water meter reader” on the front door. If a more detailed message about a meter reading is required, an SMS is sent to the resident.

Previously, the inaccessibility of water meters located inside yards was often a problem. For example, water meter readers found it more and more difficult to access water meters after fences or walls were put up. Currently water meters are installed on the outside of properties and consumers whose meters are inside the property are encouraged to apply to have their water meters moved to the outside.

The municipality follows a no/low tolerance policy with regard to water meters. “If for some or other reason a water meter reader cannot access a water meter in a specific yard three times in a row, the municipality will move the water meter at the cost of the resident,” said Frans Naudé. A second contractor then follows up on meter reading complaints. This service provider is also responsible for connections and disconnections.

The municipality has an active water meter replacement programme in order to ensure the sustainability of accurate water meter readings. After eight years water meters are unreliable. “We replace all meters older than eight years,” said Webster Austin.

holds the strings together

“Your friendly meter reader”, the note that meter readers use to notify consumers when they are unable to read a water meter.

1. Eliminate unaccounted for water This challenge has been addressed by prioritising water meters and generating an income for the municipality.

2. Identify indigent status Steve Tshwete found an innovative way to identify indigents. This register is self- regulatory.

3. Deal with illegal connections All available resources are used to identify illegal connections. When an illegal connection is detected, action is taken immediately.

4. Make sure that consumers pay for water and apply effective credit control Escalation of debt is avoided at all times and the credit control mechanisms that Steve Tshwete has in place work like 'a well oiled machine'.

5. Be innovative:a. Illegal informal settlements without services

The municipality found a solution for illegal informal settlements and the undesirable social effects that accompany them.

b. Bringing the cost of bulk water and water services downSteve Tshwete found an innovative alternative to expensive bulk water.

6. Ensure community buy-in The municipality has a successful recipe for establishing good payment habits with customers and keeping customers satisfied to ultimately increase the payment rate.

7. Make benefits tangible so that the community can see where their money goes

8. Don't wait for tomorrow - do it todaySteve Tshwete LM is prepared to make decisions and to implement them. For the management of the municipality, action today is always better than action tomorrow.

Summary of

management approach:management approach:

8 5

Frans Naudé added: “We also have bulk water meters. Bulk water meter readings are regularly compared with the totals of water meter readings. If any discrepancy is found that indicates water loss, we act immediately.”

“Yes, there is the periodic theft of water meters, but we will not replace the metal water meters with plastic ones, because the plastic ones don't last and don't work properly. We replace broken or stolen water meters within 24 hours.”

“All customers are valuable and receive the same attention, whether they are poor or rich”. Frans Naudé emphasised.

The municipality uses a GIS (geographic information system) that shows all services. It shows the position of the water meter on a stand, the type, who installed it and the meter number.

Defining indigents and implementing Free Basic WaterThe municipality's implementation of Free Basic Services is unique. It found an alternative to an indigent register, because “it is very difficult to manage an indigent register professionally”. The municipality decided to make indigent status self-regulatory. Any household that manages with a 20 Amps circuit breaker qualifies as indigent. (Electricity is prepaid and each household is free to set its own limit). Indigent households receive the following free:$10 kl of water$50 kilowatt hours of electricity$It was also argued that indigent households should

not pay any fixed charges; they are therefore exempt from paying all rates and taxes. Indigent households still receive an account - all free services are reflected on the account.

“This way nobody has to lie to anybody”, said the Municipal Manager.

There is, however, the possibility that in future the municipality will no longer manage electricity and then it will be impossible to use this method to determine indigent status.

All households, irrespective of socio-economic status, get 6kl water free per month. Indigent policy is applied with the same no/low tolerance as elsewhere; if an indigent household uses more than 15 kl of water per month, a flow restrictor will be installed.

Dealing with illegal connections“Every illegal connection is one too many,” said Webster Austin.

Illegal connections are picked up in deviation reports. As soon as a household's water consumption drastically decreases then the municipality knows there is a problem. A low reading versus obvious consumption evident in, for example, a large green garden, also indicates a possible illegal connection.

A penalty of R400 and a reconnection fee are charged in such cases. The success in fighting illegal connections

lies in early detection and fast action. Meter readers are invaluable to the municipality in detecting illegal connections.

People who report illegal connections are rewarded; R1000 in cash is paid if the allegation is found to be correct. The guilty household is named and shamed, reported to their local Councillor and labelled on the account system.

Because owners and tenants change, it is difficult to prove in court that a particular resident has made the illegal connection. This could be addressed in the contract between the municipality and its customers.

Basic Water and Sanitation

The Water Services Act (Act 108 of 1997) explains the rights of consumers in terms of water and sanitation services as follows:

( 1 ) Everyone has a right of access to basic water supply and basic sanitation.

(2) Every water services institution must take reasonable measures to realise these rights.

(3) Every water services authority must, in its water services development plan provide for measures to realise these rights.

'Basic' refers to quantity, quality AND accessibility. According to the policy documents:

a. A basic Water Supply Faci l i ty i s the infrastructure necessary to supply 25 litres of potable (drinkable) water per person per day supplied within 200 metres of a household and with a minimum flow of 10 litres per minute (in the case of communal water points) or 6 000 litres of potable water supplied per formal connection per month (in the case of yard or house connections).

b. A Basic Water Supply Service is the provision of a basic water supply facility, the sustainable operation of the facility (available for at least 350 days per year and not interrupted for more than 48 consecutive hours per incident).

c. A Basic Sanitation Facility is the infrastructure necessary to provide a sanitation service which is safe, reliable, private, protected from the weather, ventilated, keeps smells to the minimum, is easy to keep clean, minimises the risk of the spread of sanitation-related diseases, and enables safe and appropriate treatment and/or removal of human waste and wastewater.

d. A Basic Sanitation Service is the provision of a basic sanitation facility which is easily accessible to a household, the sustainable operation of the facility, including the safe removal of human waste and wastewater.

(Strategic Framework for Water Services 2003)

The public swimming pool in Mhluzi.

Tangible benefitsA key message to consumers is: Because you pay for services, we can deliver. For example, a stadium with soccer and netball fields and an athletics track, as well as a public swimming pool, was built in Mhluzi for the consumers to enjoy.

“Because people are paying for services, we are able to build such amenities,” said Hennie Niemann.

Services themselves can also be improved because people pay their accounts. Services are integrated; therefore, because people pay for water, refuse services can be improved. For example, in Mhluzi refuse is collected twice a week in order to keep the area clean. “It is necessary in winter because of the amount of ash,” said Hennie Niemann.

The municipality is currently developing two 1-stop shop service centres. At these multi-purpose community centres, consumers will be able to pay for services, visit the library, gather in the community hall, collect their pension, apply for a new ID from Home Affairs and lay a complaint at the police station - all under one roof! If that is not excellent service…!

All these benefits to the community contribute to a neat, well-serviced environment, which, in turn, encourages responsibility and regular payment.

Free Basic Water

The primary purpose of the free basic water policy is to

ensure that the right of every citizen to basic water is

exercised in a sustainable manner. In terms of the

application of free basic water policy, poor households

receive a free amount of water per month. It is the

prerogative of WSAs to decide on their free basic water

policy as long as the guidelines set out above are

followed.

The free basic water policy strengthens the “user pays”

principle for achieving the sustainability and viability of

water serv ices. Consumers have to pay for

consumption that exceeds the basic water supply

service.

The right of access to sufficient water is furthermore

subject to the limitation and disconnection of the

service in certain circumstances.

[The Water Services Act (Act 108 of 1997)]

The sustainable provision of free basic water to poor

households presupposes that WSAs manage water

losses and unaccounted for water down to acceptable

levels [Strategic Framework for Water Services

(1993)]. It also presupposes that WSAs know exactly

how much water they use every day.

In the rural township Doornkop residents use these biological toilets.

Community buy-inGood communication with the consumers is essential. The municipality makes use of the following communication channels:

$Community radio$Ward committee and ward community meetings$Mayoral Izimbizo$Newsletter$Suggestions/complaints boxes at pay points,

clinics and other public places. The municipality responds with a formal letter to each comment or complaint.

$DWAF posters for educational material $A text box on the account for short educational

messages, e.g. “be conscious of water leaks in your yard”.

6 7

agreement that would suit both parties. Steve Tshwete will get potable water at a reasonable price; and the mining company will get rid of the water that floods the mines. This water will be pumped out of the mines, purified and then sold to Steve Tshwete. It will be a much cheaper option than the one Steve Tshwete is currently using.

Rural townships: A solution for water services to rural consumersSteve Tshwete has found a solution for illegal rural settlements and the undesirable social effects that accompany them. The municipality has established rural townships. The consumers in the rural townships are provided with communal standpipes and biological toilets. The municipality chose biological toilets rather than Ventilated Improved Pit latrines (VIPs) because boreholes are used to supply water to the rural townships. With biological toilets there is no risk of polluting the same groundwater that is used as drinking water. Operation and maintenance are also cheaper in comparison with VIPs.The rural townships are the outcome of a study to formalise informal settlements and to resolve the accompanying undesirable social effects. The rural areas were divided into several nodes with at least 5 rural townships being planned. “Doornkop was the first to be established to provide stands and services to squatters on the surrounding farms. The village has 468 stands of 1000 square metre each,” says Hennie Niemann, technical services manager. Boreholes have been sunk and a reservoir ensures sufficient water pressure. The township is a standpipe development and there are no water meters. The

A resident at Doornkop rural township uses the communal standpipe.

The water reservoir at Doornkop.

Paying for water and effective credit controlThe municipality had a 98% payment rate for 2005! The reasons for this are:

Accounts are delivered by the post office and the municipality has a very good relationship with them. Accounts that cannot be delivered are returned to the municipality with a sticker that states the reason for non-delivery; for example, an empty house or an unknown address.

The municipality tries to send out its accounts on the same day of every month. They believe that this helps to encourage the habit of paying. There are some customers who phone the municipality to find out why they have not yet received an account. The payment date is exactly two weeks after the accounts have been received. On the payment date the pay points stay open

until late. The municipality has 11 pay points. The rationale is that no person should have to walk

further than 4 kilometres to pay their account or buy pre-paid electricity. These pay points are situated at easily accessible venues, for example, taxi ranks and municipal offices.

“Pay points are open at the times most convenient to customers. A suggestion box is placed at the pay points that give consumers the opportunity to give feedback to the municipality,” said Lucas Khaba, the customer services manager.

The municipality has a credit control system in place. When consumers do not pay their account they are, firstly, handed over to the Councillors and thereafter that legal action is taken. According to Global Credit's rating, the municipality had a credit rating of 17% for 2006.

Escalation of debt is avoided at all cost. Willie Fouché explained: “If a poor person falls behind with the payment of their account for more than one month, they are unable to catch up and pay the arrears on their account.”

The then Middelburg Municipality began looking at the consumers' payment habits before the amalgamation took place in 1994. In 1991 there was a payment boycott, after which a partnership agreement was entered into with the community. “After that we seldom have problems with people who do not want to pay for services,” said Willie Fouché.

Innovative solutionsLess expensive waterAlthough Steve Tshwete does not have a particular problem in supplying all their consumers with enough water, the price at which the municipality buys and reticulates this water is high. Therefore Steve Tshwete is looking at an option that would be cheaper. As part of their long term planning, the municipality is currently negotiating with Anglo American to buy potable water from the mines in the surrounding areas. This is an

Catherine Skosana assists customers at the Mhluzi pay point.

C r e d i t c on t r o l

Effective credit control is a critically important component of providing a reliable and effective service to all. Failure to consistently apply fair credit control policies can result in people going without water.

Water services authorities have the responsibility to develop a credit control policy. This policy must provide for procedures which are fair and equitable, provide for warnings and adequate notice, provide for consumer representations, allow alternative payment arrangements, and set out a procedure for non-payment.

A municipality's credit control policy must take into account the impact of credit control mechanisms (and the lack thereof) on the community, the existing service delivery context, the need for financial viability and the effectiveness of their credit control mechanisms. Municipalities must be able to take actions that will limit its financial loss and promote good payment habits.

Policies and procedures should seek to avoid the accumulation of bad debt and the high costs associated with restrictions or disconnections and reconnections.[Strategic Framework for Water Services (2003) section 4.5.8]

Procedures for the limitation or discontinuation of water services must:

(a) be fair and equitable;(b) provide for reasonable notice of intention to limit or

discontinue water services and for an opportunity to make representations unless:(i) other consumers would be prejudiced(ii) there is an emergency situation; or(iii ) the consumer has interfered with a limited

or discontinued service(c) not result in a person being denied access to basic

water services for non-payment, where that person proves, to the satisfaction of the relevant water services authority that he or she is unable to pay for basic services.

(Water Services Act, Act 108 of 1997)

boreholes represent an enormous saving. Previously the cost of transporting water to the rural areas was R100/kl.