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# South Africa: South Gauteng High Court, Johannesburg
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## South African Property Owners Association v City of Johannesburg (2022-010023)
[2023] ZAGPJHC 1347; [2024] 1 All SA 432 (GJ) (22 November 2023)
South African Property Owners Association v City of Johannesburg (2022-010023)
[2023] ZAGPJHC 1347; [2024] 1 All SA 432 (GJ) (22 November 2023)
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sino date 22 November 2023
REPUBLIC
OF SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
CASE NO: 2022-010023
REPORTABLE
NOT OF
INTEREST TO OTHER JUDGES
In the matter between:
SOUTH
AFRICAN PROPERTY OWNERS ASSOCIATION
Applicant
And
CITY
OF JOHANNESBURG
Respondent
Coram
:
Ingrid Opperman J
Delivered
:
This judgment was handed down electronically by circulation to the
parties’ legal representatives by email. The date
and time for
hand-down is deemed to be 22 November 2023
Summary
:
Lawfulness, rationality and reasonableness of City of Johannesburg’s
Development Contribution Policy (DC Policy) considered
-
Meaning of ‘development charge’ and ‘development
contribution’ explored as used in the Spatial Planning
and Land
Use Management Act 16 of 103 (the SPLUMA) and the DC Policy –
held that the DC Policy is lawful, rational and reasonable
–
held further that it raises a development contribution on a new land
development based on the impact of that development
on the capacity
of the bulk external infrastructure of the City and that such
development contribution is directly related to the
new development
in question – held further that the SPLUMA does not only
authorise development contributions for engineering
services of a
physical infrastructure but can consist of the provision of access to
existing or future infrastructure of the City
Order
The application is
dismissed with costs, such costs to include the costs of two counsel
where so employed.
JUDGMENT
INGRID OPPERMAN J
# Introduction
Introduction
[1]
In
this matter, the applicant, the South African Property Owners
Association (
SAPOA
)
seeks relief interdicting the respondent (
the
City
)
from applying the Development Contributions Policy, 2021, approved in
October 2021 (
the
DC Policy
),
to any pending or future land development applications brought in
terms of Chapter 6 of the Spatial Planning and Land Use Management
Act, 2013 (
the
SPLUMA
).
[1]
[2]
SAPOA contends that the DC Policy does not
constitute administrative action under the Promotion of
Administrative Justice Act 3
of 2000 (
PAJA
).
It is therefore not competent for SAPOA to seek to review and set
aside the DC Policy. However, SAPOA argues that the DC Policy
reflects a firm indication on the part of the City of the approach
that it intends to adopt to land development applications once
the DC
Policy is implemented. It therefore has a reasonable apprehension
that the City intends to deal with the land development
applications
in a way which would be unlawful and thus infringe upon the rights of
SAPOA members for permission to develop land
in Johannesburg.
[3]
The implementation of the DC Policy will,
according to SAPOA, see a radical departure from the existing
framework in which land
development applications are considered by
the City.
[4]
The clear right alleged to be threatened
lies in the introduction and implementation of the concept of
‘development
contributions
’
in the DC Policy. At present, land development applications are
determined in terms of the SPLUMA, which recognises the
concept of a
‘development
charge
’.
SAPOA contends that the City will empower itself to require an
applicant to pay a sum of money which is not aimed at compensating
the City for the provision of external engineering services
in
respect of the particular development
to which a land development application relates. Rather, it could
relate to an existing or future infrastructural work by the City
entirely unrelated to that proposed development (i.e. the one to
which the application relates) and the implementation of the DC
Policy would accordingly be unlawful as the SPLUMA does not authorise
this.
[5]
There has been a Bill pending which intends
to amend certain legislation, including the SPLUMA called the
Municipal Fiscal Powers
and Functions Amendment Bill (
the
Fiscal Powers Bill
). Many of the new
elements of the approach envisaged by the DC Policy take their cue
from the Fiscal Powers Bill. SAPOA alleges
that the City has, in
essence, jumped the gun and introduced the DC Policy as if the Fiscal
Powers Bill were already in force.
Absent the enactment of the Fiscal
Powers Bill, argues SAPOA, the implementation of the DC Policy is
unlawful.
[6]
SAPOA submits that the implementation of
the DC Policy would be unlawful. SAPOA points out that all public
power must be exercised
lawfully and an entity such as the City,
created as it is by legislation, may exercise no power other than one
conferred on it
by law. The implementation of the DC Policy would
allegedly be unlawful because there is no empowering provision that
permits the
City to impose development contributions in the manner
contemplated by the DC Policy.
The Chronology
[7]
The City published its draft of the DC
Policy, 2021 in June 2020. After a public comment process and some
communications between
the parties’ legal representatives, it
was established that the DC Policy would be implemented around August
2022.
[8]
On 2 August 2022 the present
application was launched. The answering affidavit was filed on 4
October 2022. The replying affidavit
was filed on 31 October 2022 and
on 18 November 2022 by agreement between the parties, the City filed
a supplementary affidavit.
[9]
The parties have agreed that the DC Policy
will not be implemented until this application is finalised.
The Issues
[10]
The parties in their joint practice note
defined the issues unpacking those questions which fall for
determination in considering
the lawfulness of the DC Policy, as
follows:
10.1
What is the impact of a development
contribution in terms of the DC Policy?
10.2
Does the DC Policy envisage a development
contribution that is unrelated to the new development in question?
10.3
What is the correct interpretation of the
SPLUMA with regard to development charges and development
contributions?
10.4
Is the development contribution envisaged
in the DC Policy authorised by the SPLUMA?
[11]
The rationality and reasonableness of the
DC Policy is also in issue.
The statutory and
regulatory framework
[12]
The statutory and regulatory context in
which the application has been brought engages the Constitution, the
SPLUMA, the by-law
presently in force in Johannesburg which governs
development charges
(
the
by-law
) and the DC Policy.
The Constitution
[13]
The
Constitution authorises a municipality to administer municipal
planning.
[2]
Section 229 of the Constitution prescribes the fiscal powers and
functions of a municipality.
The SPLUMA
[14]
The
SPLUMA has been enacted in terms of section 155(7) of the
Constitution and applies to the whole of South Africa. The SPLUMA
has
been enacted in order to
[3]
provide for a uniform, effective and comprehensive system of spatial
planning and land use management for the Republic; ensure
that the
system of spatial planning and land use management promotes social
and economic inclusion; provide for development principles
and norms
and standards; provide for the sustainable and efficient use of land;
provide for cooperative government and intergovernmental
relations
amongst the national, provincial and local spheres of government;
redress the imbalances of the past and to ensure that
there is equity
in the application of spatial development planning and land use
management systems.
[15]
One
of the components of this ‘management systems’, which is
relevant to the present application, is the establishment
of
procedures
and processes for the preparation, submission and consideration of
land development applications and related processes
as provided for
in
Chapter
6
and
provincial legislation.
[4]
[16]
Section 33(1) of the SPLUMA provides that
all land
development applications must be submitted to a municipality as the
authority of first instance. Section 35(1) then provides
that, in
order to determine land use and development applications within its
municipal area, a municipality must establish a Municipal
Planning
Tribunal which in some instances can be an official only.
[17]
Section
40 addresses the manner in which a Municipal Planning Tribunal must
determine matters which come before it. Section 40(7)
sets out the
various powers which a Tribunal may exercise in relation to an
application. A Municipal Planning Tribunal may, in
response to an
application brought before it:
approve,
in whole or in part, or refuse any application referred to it in
accordance with the SPLUMA;
[5]
in
the approval of any application, impose any reasonable conditions,
including conditions related to the provision of engineering
services
and the payment of any development charges;
[6]
make an appropriate determination regarding all matters necessary or
incidental to the performance of its functions in terms of
the and
provincial legislation;
[7]
conduct any necessary investigation;
[8]
give directions relevant to its functions to any person in the
service of a municipality or municipal entity;
[9]
decide any question concerning its own jurisdiction;
[10]
or appoint a technical adviser to advise or assist in the performance
of the Municipal Planning Tribunal’s functions in terms
of the
SPLUMA.
[11]
[18]
Section 40(7)(b) of the SPLUMA provides as
follows:
“
A
Municipal Planning Tribunal may –
(a) …;
(b) in the approval of
any application, impose any reasonable conditions, including
conditions
related to
the provision of
engineering services
and the
payment of any development charges
; ...”
(emphasis provided)
[19]
Section 42(1) of the SPLUMA provides that,
in considering and deciding an application, a Municipal Planning
Tribunal must be guided
by the development principles set out
in Chapter 2; make a decision which is consistent with norms and
standards, measures
designed to protect and promote the sustainable
use of agricultural land, national and provincial government policies
and the municipal
spatial development framework; and take into
account the public interest; the constitutional transformation
imperatives and the
related duties of the State; the facts and
circumstances relevant to the application; the respective rights and
obligations of
all those affected; the state and impact of
engineering services, social infrastructure and open space
requirements; and any factors
that may be prescribed, including
timeframes for making decisions.
[20]
The
SPLUMA deals with specific conditions which may be imposed by a
Municipal Planning Tribunal and decisions in relation to matters
ancillary to the land-use applications before it. Section 49
establishes the following principles: An applicant is responsible
for
the provision and installation of internal engineering services.
[12]
A municipality is responsible for the provision of external
engineering services.
[13]
Where a municipality is not the provider of an engineering service,
the applicant must satisfy the municipality that adequate
arrangements have been made with the relevant service provider for
the provision of that service.
[14]
An applicant may, in agreement with the municipality or service
provider, install any external engineering service instead of payment
of the applicable development charges, and the fair and reasonable
cost of such external services may be set off against development
charges payable.
[15]
If external engineering services are installed by an applicant
instead of payment of development charges, the provision of the
Local
Government: Municipal Finance Management Act 56 of 2003
, pertaining
to procurement and the appointment of contractors on behalf of the
municipality does not apply.
[16]
[21]
The term “development charges”
is not defined in the SPLUMA. The term “engineering services”
is defined
as a
“system
for the provision of water, sewerage, electricity, municipal roads,
stormwater drainage, gas and solid waste collection
and removal
required for the purpose of land development referred to in
Chapter
6”. Chapter 6 is the chapter of the SPLUMA which contains the
various provisions summarised above in relation to the
establishment
of Municipal Planning Tribunals and their powers to determine land
use and development applications.
The By-law
[22]
In
2016, the City enacted a comprehensive by-law to address the topic of
municipal planning.
Section 15
deals with the powers and functions of
a Municipal Planning Tribunal. It provides that Municipal Planning
Tribunals may, when considering
land use development applications,
“impose any reasonable conditions, including conditions related
to the provision of engineering
services and the payment of any
engineering services contributions.”
[17]
The by-law does not address the concept of “development
charges” at all; rather, it replaces the concept of
“development
charges” with the concept of “development
contributions”.
[23]
Section
46
gives effect to the distinction drawn in the SPLUMA (in
section
49)
between internal and external engineering services, making clear
(as does the SPLUMA) that the owner of land is responsible for
the
internal services and the municipality for the external services.
[18]
[24]
Section 47
deals with “External
engineering services contributions”. It provides as follows:
“
(1)
The City may levy an external engineering services contribution in
respect of the provision of an external engineering service
to the
township as envisaged in
section 46(1)
above and when it does so, the
City shall inform the owner of land in writing of the contribution
payable with the necessary supporting
documentation on how the
contribution was calculated and any conditions it might be subject
to.
(2) The external
engineering services contribution envisaged in subsection (1) above
must be set out in a policy/By-law adopted
and approved by the City
and the amount of the external engineering services contribution,
payable by the owner of the land in
question, shall be calculated in
accordance with such policy/By-law.”
[25]
It may therefore be seen that the by-law
itself does not contain any substantive rules relevant to the nature
of development contributions
and how they are to be calculated.
Rather, it replaces the concept of development charges with the
concept of development contributions
and foreshadows the introduction
of the DC Policy by requiring a policy to be enacted to calculate
“contributions”.
The DC Policy
[26]
The term ‘bulk engineering services’
is defined as:
‘
capital
infrastructure assets associated with that portion of
an
external engineering service
which
is intended to ensure delivery of municipal engineering services for
the benefit of multiple users or the community as a whole,
whether
existing or to be provided as a result of development in terms of a
municipal spatial development framework (as defined
in the
SPLUMA).
’
[19]
[27]
The term “development contribution”
is defined as:
‘
a
charge levied by a Municipal Planning Tribunal or authorised official
in terms of
section 40(7)
(b)
of,
and contemplated in
section 49
of, the [SPLUMA], which must
(a) contribute towards
the cost of capital infrastructure assets needed to meet increased
demand for existing and planned external
engineering services;
(b)
with the approval of the Minister, contribute towards capital
infrastructure assets needed to meet increased demand for other
municipal engineering services not prescribed in terms of the
Spatial
Planning and Land Use Management Act.
[20
]
Lawfulness
[28]
The City accepts that all public power must
be exercised lawfully and that the City may exercise no power other
than a power conferred
on it by law. SAPOA contends that the
implementation of the DC Policy would be unlawful because there is no
empowering provision
that permits the City to impose development
contributions in the manner contemplated by the DC Policy.
[29]
SAPOA’s legal representatives in
their heads of argument very carefully analysed the potential source
of such power and argued
that ‘development charges’ used
in SPLUMA fall under the category of ‘other taxes, levies and
duties appropriate
to local government’, as used in section
229(1) of the Constitution. That being so, national legislation must
exist to empower
the City to charge development charges. The national
legislation is the SPLUMA.
[30]
I need not delve into the exposition of the
origin of the power as my understanding of the City’s argument
(not the position
advanced in the answering affidavit) is that it
accepts that ‘development charges’ may only be imposed if
authorised
by the SPLUMA.
[31]
The City argues that because the concept of
‘development contributions’ as used and defined in the DC
Policy is a sub-species
of the concept of ‘development
charges’, it follows that the SPLUMA empowers the City to
charge development contributions
in respect of bulk engineering
services in the DC Policy.
[32]
SAPOA argues that
the
relevant provisions are sections 40(7)(a) and 49 of the SPLUMA.
Section 40(7)(a) empowers a Tribunal (or an official in appropriate
cases), when deciding a land development application, to impose
conditions
related to the provision of engineering services and the payment of
any development charges. SAPOA suggests that it is
therefore
necessary to interpret these provisions to determine the outer
parameters of the power to impose development charges.
[33]
Section 40(7)(b) of the SPLUMA provides as
follows:
“
A
Municipal Planning Tribunal may –
(a) …;
(b) in the approval
of any application, impose any reasonable conditions, including
conditions
related to
the provision of
engineering services
and the
payment of any development charges
; ...”
(emphasis provided)
[34]
Section 49 provides:
‘
(1)
An applicant is responsible for the provision and installation of
internal engineering services.
(2) A municipality is
responsible for the provision of external engineering services.
(3) Where a municipality
is not the provider of an engineering service, the applicant must
satisfy the municipality that adequate
arrangements have been made
with the relevant service provider for the provision of that service.
(4) An applicant may, in
agreement with the municipality or service provider, install any
external engineering service instead of
payment of the applicable
development charges, and the fair and reasonable cost of such
external services may be set off against
development charges
payable.’
[35]
In
a very extensive and most useful summary of the most recent judicial
pronouncements in the law of interpretation over the past
years
[21]
,
SAPOA’s counsel distilled the following principles which it
contends should have application in this matter: (a)
The
language of the provision under consideration remains important, but
it must be understood in its proper context. (b) Context
refers to
the location of the provision in the remainder of the document. It
also refers to matters such as the manner of the provision’s
implementation.
(c)
Although
not expressly emerging from the authorities discussed it was
submitted that the fact that the Fiscal Powers Bill has been
enacted
which will change the law substantially – and expressly modify
the way in which SPLUMA has been applied in the past
– is part
of the relevant context. They submitted that although there was some
controversy in the past about the extent to
which a Bill could be
used in the interpretive exercise, the modern approach to
interpretation as reflected in
Endumeni
and
University
of Johannesburg
clearly accommodates that as part of a consideration of the relevant
context. (d) The common understanding of those engaged with
the
implementation of legislation of how it is to operate, while not
decisive, is a relevant consideration in the interpretive
exercise.
[36]
Applying the aforegoing principles, it was
contended that SPLUMA clearly envisages that development charges
relate to the particular
development to which the application
relates.
[37]
The City accepts that in terms of the
SPLUMA, the development charges must
relate
to the particular development.
[38]
What is in dispute, is whether the SPLUMA
requires the development charge to relate to
physical
infrastructure
for the particular
development or whether it can consist of the provision of
access
to
(in the sense of a connection to or
impact on) existing or future infrastructure.
[39]
The SPLUMA defines:
‘
engineering
service
’
as:
‘
a
system for the provision of water, sewerage, electricity, municipal
roads, stormwater drainage, gas and solid waste collection
and
removal required for the purpose of land development referred to in
Chapter 6;’
‘
external
engineering service’ as:
‘
an
engineering service situated outside the boundaries of a land area
and which is necessary to
serve
the use and development of the land area;’
(emphasis
provided)
[40]
Engineering services are divided between
internal and external. The City is responsible for external
engineering services which
involves the provision of engineering
services outside of the boundaries of the land area to be developed.
The provision of external
engineering services has costs implications
for the City and to regulate this the SPLUMA establishes a system in
terms of which
the City may impose a condition on the granting of a
land development application requiring an applicant to pay
development charges
as part of the conditions that the developer has
to fulfil to get the permission to develop the land which they have
targeted for
development. These charges are calculated to cover the
cost of the provision by the City of the infrastructure necessary to
provide
external engineering services to the new development. Once
those costs are covered, so SAPOA alleges, the services are then to
be provided against payment for them in the ordinary course (i.e.
reflected in, for example, the development’s monthly water
or
electricity bill).
[41]
The City argues that the DC Policy raises a
development contribution on a new land development based on the
impact (measured in
standard units of impact) of that development on
the capacity of external engineering infrastructure of the City’s
infrastructure
for water, sanitation, electricity, municipal roads,
stormwater and transport. It argues that the development contribution
envisaged
by the DC Policy is directly related to the new land
development in question in that the impact (the demand for capacity)
for which
the development contribution is levied is the impact of the
new development on the capacity of the infrastructure of the City.
[42]
The City in its answering affidavit
explains that the external engineering services are also known as
‘bulk engineering services’.
Bulk engineering
infrastructure is intended to ensure delivery of municipal
engineering services for the benefit of multiple users
or the
community as a whole. This concept is captured in the definition of
‘bulk engineering services’ in the DC Policy.
It is,
however, not peculiar to the DC Policy. It is, as stated by the City,
standard practice. By way of example, this court
is told, a
municipality does not lay a pipeline from the reservoir to each
individual house or business, but installs a relatively
large
pipeline from the reservoir, serving many houses or businesses. The
pipeline serves a community. An individual land development
is served
by only a fraction of the contents.
[43]
The aspect to which the City draws
attention is the pipeline’s capacity. The individual land
development is served by only
an undivided fraction of the capacity.
[44]
Whenever a newly laid out land area is
developed and needs to be connected to engineering services the first
question is whether
there is an existing service into which the
development can tap, or make use of, or whether a new service needs
to be installed.
In the case of an existing infrastructure the second
question that arises is whether the existing infrastructure has
sufficient
capacity to accommodate the new development. The new
development is viewed as making a demand for a share of the capacity
of the
pipeline. The increased demand of, or by, a new development
can also be described as an "impact" on the capacity of the
existing infrastructure.
[45]
The City contends that it is also important
to realize that the existing infrastructure of a particular service
(say water supply)
of a municipality is a complex and integrated
structure or system of pipes, valves, etc starting at an original
source. That source
also has a limited capacity. In a very real sense
a new land development area will make an impact on all the components
of the
infrastructure of the particular bulk engineering service. By
way of example, a new house in a residential development would
normally
be regarded as making an impact of 5 kVA. If there are 100
houses in the development it will result in a total demand for
capacity
of 500 kVA. That demand impacts on the total structure of
the electrical reticulation system right through to the point where
the
municipality takes off electricity from the Eskom supply cables.
[46]
To stay with the example, if the existing
electrical infrastructure can accommodate the additional 500 kVA it
only means that no
additional physical infrastructure is required.
However, the "impact" on the infrastructure as a whole is
nevertheless
real. At some time in the future the further demands (by
subsequent land applications) would add up and make an addition to
the
physical infrastructure in the form of extension or upgrade
necessary. The City contends that it is only fair that the developer
should pay a contribution for that impact otherwise it means that the
City (ie the community) who paid for the infrastructure is
financing
the "impact".
[47]
So, the argument continues, even if no new
pipeline (or cable in respect of electricity) is required and the
City allows the development
to tap into the existing infrastructure,
it is accommodating the demand and is, in doing so, providing, in a
very real sense, "an
engineering service to serve the use and
development of the land area". For that service, the City
argues, a contribution
can be levied, based on the impact the new
development makes on the capacity of the whole integrated
infrastructure.
[48]
In my view, a ‘development
contribution’ in terms of the DC Policy is directly related to
the development to which an
application applies, but it is not
‘related’ in the sense that SAPOA uses the term, i.e.,
new infrastructure required
to attach the development land to the
existing infrastructure. In this sense of ‘relate’, on
SAPOA’s interpretation,
where the development’s internal
engineering services could be linked to the City’s external
engineering services without
new external engineering services being
required, then the developer would have to pay no development
contribution because there
was no new external engineering service
relating to that development.
[49]
The DC Policy reflects the following
clauses:
Development contribution
is defined as:
“
a
charge levied by a Municipal Planning Tribunal or authorised official
in terms of section 40(7)(b) of, and contemplated in
section 49
of,
the
Spatial Planning and Land Use Management Act, which
must –
(a) contribute
towards the cost of capital infrastructure assets needed to meet
increased demand for
existing and planned external engineering
services
;
(b) with the approval of
the Minister, contribute towards capital infrastructure assets needed
to meet increased demand for other
municipal engineering services not
prescribed in terms of the Spatial Planning and Land Use Management
Act”. (emphasis provided)
Clause 10.1.1 provides:
‘…
.The
DC relates only to the cost of bulk engineering services…..’
Clause 10.1.2 of the DC
Policy provides:
“
The
DC liability must be proportional to the extent of the demand that
the land development is projected to create, for existing
or planned
bulk engineering services and must be calculated on the basis of a
reasonable assessment of the costs of providing existing
or planned
bulk engineering services.”
Clause 10.1.3 of the DC
Policy provides:
“
The
DC for each service is calculated as the total impact on the service,
multiplied by the unit cost for that service applicable
in the
current financial year. This calculation is undertaken for each
engineering service covered by this policy. The calculation
of the
total development contribution is given by the generic formula: ...”
Clause 10.3.1 of the DC
Policy provides:
“
The
reasonable assessment of the costs of providing bulk services has
been undertaken through the City of Johannesburg’s Consolidated
Infrastructure Plan (CIP). The CIP projected the anticipated demand
for engineering services as a result of growth in the city
over 20
years. The infrastructure required to service this additional demand
has been determined through master planning services
and the capital
projects identified and entered into the Johannesburg Strategic
Infrastructure Plan (JSIP). The projects that are
required to service
new demand over a 10-year period in the city have been extracted from
the JSIP project list, excluding all
projects addressing
infrastructure backlogs or renewal of existing assets. The total cost
of engineering services for new development,
so derived, is divided
by the anticipated demand for each service to generate a unit cost.
The unit cost is expressed as a rand
per unit of measure (as per
table 1) for each service.”
[50]
The development contribution is required of
developers under the DC Policy because of the impact that their
proposed new development
will make upon the overall infrastructure
capacity of the City. Even under circumstances where no new
infrastructure has to be
provided, i.e. where sufficient
infrastructure exists to support the development envisaged, the
development contribution is still
levied to compensate the City for
the impact that the new development will draw down from the City’s
existing infrastructure.
Clearly, all new developments will draw some
water, some electricity or other engineering services from the City
and these will
be paid for as they are consumed. However, the
infrastructure which allows those consumables to arrive at the
development is different
from the consumables delivered
via
that infrastructure. The municipal bus passengers
catching busses to and from a new development pay for their bus
tickets, but they
do not pay for the road, whether it is a new road
developed specifically to service that development or whether it was
a municipal
road that already existed at the time of the development
being developed. The fact that sufficient infrastructure may exist
simply
means that it was paid for before. In my view it would be
irrational and unfair for a new developer under those circumstances
to
use the existing infrastructure free of charge when the
development from which the developer intends profiting is using that
infrastructure.
The proceeds of the development contribution paid by
the developer for the new development can be used to provide
infrastructure
elsewhere in the City, as clause 9.3 of the DC Policy
provides:
“
If
adequate external engineering services exist to service a
development, the DC’s collected from that development may be
used to provide infrastructure elsewhere in the City.”
[51]
As is pointed out by the City, once the new
development connects to the City’s infrastructure, the impact
on the City’s
infrastructure occurs immediately; the capacity
of the bulk infrastructure is taken up from that moment.
[52]
SAPOA’s suggestion that a development
contribution should only be triggered by ‘extra’ physical
engineering services
is thus erroneous. Bulk infrastructure serves a
multitude of developments, and it is not explained by SAPOA why a
developer should
not have to pay anything where sufficient
infrastructure exists which infrastructure has already been paid for
but which the developer
will obviously take advantage of in their
development.
[53]
SAPOA contends that the DC Policy
authorizes the City to impose development contributions unrelated to
the specific development
to which an application relates. This
complaint is unfounded. As is clear from the aforegoing, the
contribution is calculated specifically
on the basis of the impact of
the specific development on the existing or future infrastructure and
the cost to the City to provide
for that impact.
[54]
The narrow interpretation which the SAPOA
gives to a development contribution is not supported by the
provisions of SPLUMA.
[55]
The concept of a development charge under
SPLUMA is wider than the concept of an engineering service
contribution. There is no basis
to limit the term "development
charge" in SPLUMA to mean only "engineering service"
contributions. Under SPLUMA
itself, the concept of development
charges is intended to be a wider concept than external engineering
contributions when regard
is had to its history, purpose and text.
[56]
SPLUMA had intentions beyond simply a
national codification of land development frameworks and also has a
broader purpose. This
is evident from its Preamble which, amongst
other things, records:
‘
WHEREAS
many people in South Africa continue to live and work in places
defined and influenced by past spatial planning and land
use laws and
practices which were based on –
·
Racial inequality;
·
Segregation; and
·
unsustainable settlement patterns;
…………
AND WHEREAS spatial
planning is insufficiently underpinned and supported by
infrastructural investment;
………
AND WHEREAS it is the
State’s obligation to realise the constitutional imperatives
in….
·
section 25 of the Constitution, to ensure
the protection of property rights including measures designed to
foster conditions that
enable citizens to gain access to land on an
equitable basis;
·
section 26 of the Constitution, to have the
right of access to adequate housing which includes an equitable
spatial pattern and
sustainable human settlements;
……
AND WHEREAS the State
must respect, protect, promote and fulfil the social, economic and
environmental rights of everyone and strive
to meet the basic needs
of previously disadvantaged communities;
AND WHEREAS sustainable
development of land requires the integration of social, economic and
environmental considerations in both
forward planning and ongoing
land use management to ensure the development of land serves present
and future generations;
……
.
AND WHEREAS it is
necessary that—
·
a uniform, recognisable and comprehensive
system of spatial planning and land use management be established
throughout the Republic
to maintain economic unity, equal opportunity
and equal access to government services;
·
the system of spatial planning and land use
management promotes social and economic inclusion;..."
[57]
Section 3 (b) and (f) of SPLUMA provides
that its objects include to:
"(b) ensure that the
system of spatial planning and land use management promotes social
and economic inclusion;...
(f) redress the
imbalances of the past and to ensure that there is equity in the
application of spatial development planning and
land use management
systems’.
[58]
Where external engineering services take
the form of bulk engineering services it serves a specific land
development not by the
provision of the infrastructure as such but by
the provision of
access
to
such infrastructure. Access in this context means granting the demand
for an undivided fraction of the capacity of the infrastructure.
That
is the impact that the land development will make on the City’s
infrastructure. Allowing that impact by granting the
application is
the provision of bulk engineering services to the land in question.
That is the basis of the City’s development
contribution, and
it is authorized by the SPLUMA.
[59]
Once it is accepted, which I do, that the
City’s granting of access to its bulk infrastructure, is in
fact the provision of
bulk engineering services to the land
development in question, it follows that a development contribution
is levied in respect
of that service and that necessarily relates to
the land in question.
[60]
SAPOA does not attack the methodology of
calculating the contribution as envisaged in the DC Policy. SAPOA
also does not challenge
the degree to which the contributions relate
to the development in question but contends that there is no
relationship. This latter
argument cannot be sustained.
[61]
The interpretation contended for by SAPOA,
namely that the meaning of s 40(7)(b) of the SPLUMA is that the
“
development charges
”
can only be imposed in respect of the provision of physical bulk
infrastructure, finds no support in the wording of that
section. Such
interpretation leads to an unbusinesslike result. The conclusion of
SAPOA’s interpretation is that where a
new land development
simply connects to existing bulk infrastructure, the developer cannot
be charged a development charge (or
development contribution). It is
allowed to ride on the back of whoever paid for the infrastructure,
other developers, or a municipality
(
i.e.
civil society). The unfairness of this approach to the
ratepayers is patent and in addition infringes on the very purpose
and objects of SPLUMA.
[62]
SAPOA does not explain where in the SPLUMA
it is stated or implied that the development charges are to be
calculated to cover the
cost of the provision by the City of the
infrastructure. Section 40(7)(b) simply refers to any development
charges.
[63]
Section 49(4) draws a clear
distinction between the cost of the external service and a
development charge. Where a proposed development
is not accommodated
in current infrastructure master plans such as a developer being
required to build a new reservoir to supply
water, this is not a
development contribution. It is an exceptional situation provided for
in section 49(4) of the SPLUMA. Section
40(7)(b) deals with
engineering services. This includes bulk engineering services.
[64]
It is in my view a rational and fair method
of apportioning the costs between developers. It is a user-pay
methodology, and the
user only pays for the capacity it applies for
and receives. The cost in terms of the DC Policy is not based on the
actual costs
of the infrastructure needed for the land development in
question but on the average cost per unit of impact across the
infrastructure.
In the light of the aforegoing, the development
contribution is calculated and paid for in respect of the new land
development
because it is the new land development which draws on a
portion of the capacity.
[65]
SAPOA has studiously avoided explaining how
a development contribution should be calculated when its basis is the
cost of the specific
infrastructure needs of the land development in
question. What is lacking in SAPOA’s affidavits and in its
heads of argument
is an indication of how a contribution should be
calculated where, as SAPOA contends, it is based on the costs of
extra physical
additions to the bulk infrastructure and bulk
infrastructure serves a multitude of developments. Must the developer
of the new
residential development pay the full cost of an additional
municipal water reservoir required to serve the area or a percentage
thereof and if so, what percentage?
[66]
Also problematic for SAPOA are the
following facts from the City’s answering affidavit
‘…
.external
engineering service contributions have
for
years been
calculated by
applying estimated costs (unit costs) and applying that cost to the
anticipated extra demand introduced by the new
development (the
number of units of impact).’
This
out of the mouth of the Executive Director: Development Planning and
Urban Management of the City with a confirmatory affidavit
from the
City’s Deputy Director who was extensively involved in the
drafting of the DC Policy.
[67]
In
interpreting the SPLUMA I can and should have regard to the comments
of the SCA in
Bosch
:
[22]
‘
There
is authority that in any marginal question of statutory
interpretation, evidence that it has been interpreted in a consistent
way for a substantial period of time by those responsible for the
administration of the legislation is admissible and may be relevant
to tip the balance in favour of that interpretation. This is
entirely consistent with the approach to statutory
interpretation
that examines the words in context and seeks to
determine the meaning that should reasonably be placed upon those
words.
The conduct of those who
administer the legislation provides clear evidence of how reasonable
persons in their position would understand
and construe the provision
in question. As such it may be a valuable pointer to the correct
interpretation.
’
(emphasis
provided)
[68]
Finally, I need to say something about the
Fiscal Powers Bill. SAPOA placed much reliance on the Fiscal Powers
Bill arguing that
many elements of the approach envisaged by the DC
Policy take their cue from such Bill and that this is an implied
concession that
without it, the implementation of the DC Policy would
be unlawful because by way of example, the DC Policy uses the term
‘development
contribution’ to do the work that the term
‘development charge’ would do under the Municipal Fiscal
Powers Act
when it is amended by the Fiscal Powers Bill. As already
found, the SPLUMA authorises the development contribution as used in
the
DC Policy.
[69]
I have accepted for purposes of this
application that a process is in place which might well result in
various provisions of the
SPLUMA including sections 40 and 49 being
amended and that the DC Policy has borrowed definitions from the
Fiscal Powers Bill.
I consider myself bound by the existing law and
have focused the enquiry on whether the implementation of the DC
Policy would infringe
upon the rights of SAPOA for permission to
develop land in Johannesburg on the law as it stands.
[70]
I decline the invitation to have regard to
the content of the Bill in any depth in order to determine the
relevant context. There
are a host of reasons why Acts are amended.
In addition, the fact that a Bill exists, does not mean an Act will
be changed. As
conceded by SAPOA’s counsel, there has been
controversy in the past about whether and if so, the extent to which,
a Bill
can or should be used in the interpretative exercise. Although
it might be permissible in principle, which I do not decide, having
regard to the modern approach to interpretation to have regard to a
Bill, insufficient information has been placed before me to
enable me
to determine the reasons for the changes and the weight to be
attached to such changes in the industry.
[71]
In sum:
71.1
The DC Policy raises a development
contribution on a new land development based on the impact (measured
in standard units of impact)
of that development on the capacity of
external engineering infrastructure for the provision of water,
sanitation, electricity,
municipal roads, stormwater and transport.
71.2
The development contribution envisaged by
the DC Policy is directly related to the new land development in
question in that the
impact for which the development contribution is
levied is the impact of the new development on the capacity of the
engineering
infrastructure of the City.
71.3
The engineering services for which SPLUMA
authorises a development contribution (a charge) is not only physical
infrastructure but
can consist of the provision of access to (in the
sense of a connection to or impact on) existing or future
infrastructure of the
City.
71.4
The SPLUMA in section 40(7)(b) authorises
the City to impose conditions related to the provision of engineering
services and the
payment of development charges when approving land
development applications. A development charge includes a development
contribution
as defined in the DC Policy and is thus authorised by
SPLUMA and is lawful.
The radical
departure
[72]
Mr Du Plessis SC, representing the City,
pointed out that SAPOA’s case had evolved. The initial attack,
he submitted, was
aimed at the fact that the development contribution
did not
relate to
the land development in question i.e. the one in the application.
This was amended and the attack was then restricted to the situation
where no additional physical infrastructure is provided. The case at
the hearing, he understood, was limited to whether the development
contribution is authorised by the SPLUMA.
[73]
His complaints are intertwined with the
difficulty I raised with Ms Annandale SC, representing SAPOA, during
the hearing. It is
this: Where does one see the ‘radical
departure’ on the papers before the court? SAPOA came to court
on the basis that
their rights are to be infringed should the DC
Policy be implement but there is no ‘current position’
which is juxtaposed
against the ‘threatened future position’.
There are no clearly spelt out so-called ‘before’ and
‘after’
positions from which the ’radical
departure’ can be seen.
[74]
She referred me to the following paragraphs
in the founding affidavit:
58
These provisions of the SPLUMA, properly
interpreted, mean that development charges are to be imposed as part
of a land-development
application to compensate for the provision by
the municipality of external services
in
relation to that development
.
59
This is how they have always been
interpreted and applied in the past, not only in the City but in all
of the major municipalities
in the country. As part of development
applications, the municipal authorities require services reports to
be submitted in which,
in addition to the design of internal
engineering services, the adequacy of roads, electricity, sewer,
water services and other
external engineering services is assessed,
together with the necessary improvements. Where such external
engineering services are
inadequate the land development approvals
routinely include a condition that the upgrading or installation of
such external engineering
services must be effected in accordance
with the reports produced, to the satisfaction of the municipality.’
[75]
The historical factual position in contrast
is set out as follows by the City in its answering affidavit:
‘
55.1
I deny that the DC Policy introduces an entirely new approach
to land development applications. As set out above, external
engineering service contributions
have
for years
been calculated by applying
estimated cost (unit cost) of each particular type of infrastructure
and applying that cost to the
anticipated extra demand introduced by
the new development (the number of units of impact).
55.2 The concept of a
"development contribution" is not a replacement of the term
"development charge" it is
rather a component of a
"development charge" as envisaged in SPLUMA.
55.3. SAPOA's contention
that monies received for development contributions "relate to
existing or future infrastructural work
by the City entirely
unrelated to the proposed development" is a misconception.
Firstly, as set out in the DC Policy, monies
received in respect of a
particular type of service (such as road, water or electricity) is
allocated towards the funding of infrastructure
for that type of
service (roads, water and electricity respectively). Secondly,
whereas the funds received may not be immediately
utilised for the
upgrading of infrastructure immediately to service the new
development and is used on other infrastructure projects
during that
financial year, this does not mean the money is used for "entirely
unrelated" development. Such monies fund
the general Municipal
Annual Budget such that in future years when the infrastructure
directly affected by the new development
requires upgrading, it is
funded from other income sources. In other words, the money used in
the year of the land development
approval is not held in trust (and
stagnated) but used in the current financial years, while the
existing (but yet to be met) added
infrastructure burden is paid for
in later years from different funds.
55.4 I am advised and
respectfully submit that it would be contrary to principles of
Municipal budgeting and impractical if particular
sums of money
received in any particular land development had to be held in trust
and only utilised when infrastructure directly
relating to that new
development required upgrading.
55.5. The so-called "new
approach" is not fundamentally new. Furthermore, it is not based
on the change in terminology
from a "development charge" to
a "development contribution". The first- mentioned concept
is authorized in
the SPLUMA and the second is authorized in the
Planning By-law. The former is a wider concept and includes the
latter.
55.6 It is denied that
under the "new approach" the contribution is not aimed at
compensating the City for the provision
of external services in
respect of the particular development.
55.7. A benchmarking
exercise was conducted for the City by its project team Zutari (Pty)
Ltd under the control of Mr J van den
Berg. The results are contained
in a memorandum titled "DC Calculator benchmarking" a copy
of which is attached hereto
as annexure "AA4". The
benchmarking includes an analysis of unit impacts and unit costs
comparing the current (May 2021)
figures of Johannesburg with those
of the City of Cape Town and the City of Ekurhuleni. The exercise
indicates that the new Johannesburg
Calculator produces results
slightly higher than previous Johannesburg DCs and in line with those
charged by the other metros.’
[76]
SAPOA
is claiming final relief and the evidence in these proceedings
accordingly falls to be assessed in accordance with the principles
rehearsed in
Plascon
Evans
[23]
.
Thus, the facts alleged by the City, are to be accepted unless they
could be rejected on the papers as palpably far-fetched or
unfounded.
Admittedly not all contained in the quoted portions is fact but the
core factual finding on this score I am driven to
make by virtue of
the
Plascon
Evans
rule
is that there has been no change, or certainly not, a radical one.
This factual conclusion hits at the heart of SAPOA’s
application. What is this court interdicting if everything is in
substance staying the same? It is not insignificant that the replying
affidavit does not take issue with the factual averments contained in
the quoted paragraph 55 of the answering affidavit. This
confusion
affects all three requirements of the interdictory relief
[24]
as well as urgency (although accepted by all not to be in issue).
[77]
The DC Policy will not introduce an
entirely new approach to land development applications. There is no
replacing of “
development charges
”
with “
development contributions
”.
The City has levied development contributions in terms of SPLUMA from
long before the adoption of the DC Policy.
[78]
The purpose of the DC Policy is explained
in clause 2 of the DC Policy. Bulk infrastructure in the City is
provided by three Municipal
Owned Entities (MOES)
and
one municipal department. Historically each of these MOES and that
department planned and implemented infrastructure separately,
including the calculation and charging of development contributions.
This resulted in different approaches by different MOES
although the
development charges were levied through the City’s land use
management processes.
[79]
The purpose of the DC Policy is to
introduce a single development contributions policy not to introduce
an entirely new approach
as suggested by SAPOA. The purpose of the DC
Policy is to create uniformity across the City in levying
contributions, to provide
legal certainty and to regulate the
applicability of development contributions.
[80]
No evidence is provided by SAPOA to
contradict this and the application fall to be dismissed on this
basis too.
Rationality and
Reasonableness
[81]
The implementation of the DC Policy would
also, it is alleged by SAPOA, be irrational and unreasonable. The DC
Policy is, so the
argument continues, designed to provide advance
insight to applicants and the officials of the City or municipal
planning tribunals
which have to decide land development
applications. However, the DC Policy is alleged to be impermissibly
vague, and internally
inconsistent in several alleged material
respects making it impossible for applicants to discern in advance,
so contends SAPOA,
what considerations will be considered by the City
in deciding such applications.
[82]
The City contends that the uncertainties
and instances of vagueness listed by SAPOA, on analysis, do not exist
and will not, even
if they do exist, result in a situation where the
DC Policy gives insufficient guidance to land development applicants
and City
officials. The City says that the DC Policy will be
implemented with a spreadsheet type document the “
DC
Calculator
”. It will enable
developers and municipal officials by simply entering the details of
the proposed development into the calculator,
to obtain an estimation
of the development contribution that will be required. The City
states that it has already provided
SAPOA with a presentation
explaining the operation of the DC Calculator.
[83]
It is suggested by SAPOA that the DC Policy
envisages that a development contribution may be imposed to fund the
provision of infrastructure
elsewhere in the City and that this is
somehow irrational. As I have now found, this is based on an
erroneous interpretation of
the DC Policy. The purpose of a
development contribution is to compensate the City for provision of
access to the bulk infrastructure.
The ultimate objective is to
contribute to the funding of infrastructure development in the City.
The way a development contribution
is calculated is totally
different. SAPOA’s argument conflates the purpose of a
development contribution with the way it
is calculated. The purpose
is not to remunerate the City for the costs of the infrastructure
needs of the land development in question.
It is to remunerate the
City for providing an undivided portion or fraction of the capacity
of the infrastructure to the new development.
That remuneration is
based on the cost of the infrastructure. The unit of impact method of
assessment is used and a value placed
on it. The unit value for
future cost of infrastructure required to support the expected growth
in the city has been calculated.
Such an approach is rational.
[84]
SAPOA suggests that the DC Policy is
internally contradictory in a manner which bears on its rationality
where the City requires a developer to
install infrastructure to accommodate demand in excess of the impact
of the land development
in question. The City explains that this is
an exceptional situation, is provided for in s 49(4) of the SPLUMA
and has nothing
to do with the payment of a development contribution.
As s 49(4) provides, the fair and reasonable cost of such external
services
may be set off against the development charges payable. An
illustration of the principle involved would be the situation where
there is insufficient infrastructure to supply water to a new
development and as a condition for approval of the township
application
the City requires that the developer constructs a
reservoir which will have capacity to serve many future developments.
It is important
to note the qualification that the developer may only
be compelled to follow this route “
where
the proposed development is not accommodated in current
infrastructure master plans
”.
This method is not a development contribution and does not contradict
the definition of a development contribution. The
quotation from
clause 9.3 of the DC Policy that where adequate engineering services
exist, the development contributions may be
used to provide
infrastructure elsewhere, is the direct opposite of the situation
referred to. In the one case adequate external
engineering
services exist and in the other case the services are inadequate.
[85]
The DC Policy provides, in clause 7.2, that
the “
City will not factor into its
DC calculation the costs of engineering services provided by other
spheres of government or by state-owned
entities. Thus, for example,
the costs of designated provincial or national roads cannot be
included in the calculation, but developments
abutting a provincial
or national road will still be required to pay a DC for use of the
municipal road network.
”
SAPOA
contends that it is unlawful and irrational for the City to use
development charges, albeit rebranded as “development
contributions”, in a manner which essentially renders them
tolls for the use of public roads. It argues that this, in essence,
transforms a development charge from a payment for the creation of an
external engineering service, into a charge to use an existing
public
road.
[86]
The charging of a development contribution
for the use of municipal roads as contemplated in Clause 7.2 is not
unlawful or irrational.
Clause 7.2 deals with the situation where the
new development abuts a provincial national road. However, those road
users will
also use municipal roads to get to the development in
question or
vice versa
.
The levying of a development contribution on the impact of the
development on municipal roads (the increased trip generation)
is not
a charge for the use of the road. In the same way the development
contribution in respect of water infrastructure is a contribution
for
the access to the infrastructure but not for the water flowing in the
pipe.
[87]
The accusation of cross-subsidisation or
the subsidisation of other developments is misplaced. A potentially
random form of cross-subsidisation
has been replaced by one where
each developer pays for the percentage of the City’s bulk
infrastructure capacity that its
development represents. It
presupposes that the basis for a development contribution is that the
developer pays for the physical
infrastructure that is only needed
for the new development. If that were so it could be argued that the
development contribution
should be used for the capital costs of
infrastructure for the development that it has paid for.
[88]
The development contribution envisaged in
the DC Policy is charged for the impact the new development makes or
will make on the
infrastructure of the City as a whole. It is
calculated on that impact, not on the cost of the actual
infrastructure needed to
support or link the developer’s
development to the infrastructure. The developer receives what
it pays for, namely
a right of use, a right to access a percentage of
the overall. If sufficient infrastructure already exists the City is
entitled
to use the money for the same type of development in a
different area. That money will in any event not be used to subsidise
a
specific development as suggested by SAPOA but open up a whole new
area for many new developments to which the DC Policy will apply
equally. There is nothing arbitrary or irrational about this.
[89]
It seems clear that the purpose of the DC
Policy is to create uniformity across the City in levying
contributions, to provide legal
certainty and to regulate the
applicability of the development charge. Being measured by units of
impact it would appear, provided
these units are uniformly
calculated, to promote the value of equality across all developers.
The bigger the share of the capacity
the development intends using,
the bigger the development contribution ought, in reason, to be.
Charging only for new infrastructure
seems, by contrast, arbitrary.
[90]
It does not matter how much electricity is
consumed by the development at any particular time, nor how much
water is consumed by
it. It is the capacity of the system to provide
electricity and water etc by either pipe or the cable which can carry
the water
or electricity that is the bulk engineering service via
which the consumables (electricity, water, sewage, busses) are
transported
that is the subject of the development contribution, not
the consumable itself. Some development will need the laying of new
pipes,
some not. Some developments will need the laying of new
electrical infrastructure, some will not. The infrastructure, extant
or
reasonably anticipated elsewhere in the city by reason of this
development’s taking up a percentage of the total capacity,
makes up ‘the capacity of the city’ whether existing at
the time of the new development or merely reasonably foreseen.
[91]
It is the right to
share
in the use of
that infrastructure and
for the
share of that capacity
that the development contribution is levied and
because it is proportional to the load imposed by the new development
it is related
to it in a mathematically sound sense. Thus, a new land
development area will make an impact on all components of the
infrastructure
of the bulk engineering service. The units of impact
are set out in table 1 of the Policy, namely kVA electricity,
equivalent trips/peak
hours (roads) kilolitres per day (water),
kilolitres per day sanitation, unit run-off coefficient per metre
squared (stormwater)
PT public transport trips / per peak hour
(transport). Those are all units of measurement per capacity. The
unit costs are then
determined as set out in paragraph 10.3.1 of the
DC Policy and the total costs of the expected development of the
engineering service
is then divided by the anticipated future demand
(expressed in units of capacity) for each service to generate a unit
cost. The
unit cost is expressed in rands per unit of demand as per
table 1 of the Policy for each service and the total of the units of
impact of the new development are then multiplied by the costs per
unit to generate or yield the amount of the contribution.
[92]
It is thus clear that a development
contribution is a contribution for a service which is necessary to
serve the use and development
of the land area as envisaged in the
definition of external engineering service in the SPLUMA. Broadly
stated, it is a contribution
to the provision of the service to the
area. The determination of the amount is based on the cost to provide
that service. That
service to the new development is not the physical
element of a pipeline or a cable or a road. The service rendered is
an undivided
share of the capacity of the pipeline, cable or road
measured as an impact.
[93]
There
are a host of provisions of the DC Policy
[25]
which make it clear that the basis or purpose of a development
contribution is to compensate the City for the increased demand
on
the infrastructure arising from the new land development.
[94]
As
a matter of necessary inference, as was said in
Albutt
v Centre for the Study of Violence and Reconciliation
[26]
:
‘
What
must be stressed is that the purpose of the enquiry is to determine
not whether there are other means that could have been
used, but
whether the means selected are rationally related to the objective
sought to be achieved.’
[95]
In my view this enquiry must be answered in
favour of the City on the facts of this matter as there is a clear
rational relationship
between the objective, namely the funding of
the infrastructure growth of the City and the means of obtaining that
funding from
the developers who will ultimately benefit from such
development being a development contribution based on payment for
what is,
in effect, a right of access to the capacity of the City’s
infrastructure. Every unit of impact potentially diminishes the
overall capacity of the City’s infrastructure.
[96]
The
system of the DC Policy is based on the principle that the user pays
and the user pays for the equivalent of the impact of his
development
on the overall capacity of the community that is the City and in
particular the infrastructure provided to support
urban coexistence.
As was said in
Bato
Star
Fishing
(Pty) Ltd v Minister of Environmental Affairs
[27]
:
What will constitute a
reasonable decision will depend on the circumstances of each case,
much as what will constitute a fair procedure
will depend on the
circumstances of each case. Factors relevant to determining whether a
decision is reasonable or not will include
the nature of the
decision, the identity and expertise of the decision-maker, the range
of factors relevant to the decision, the
reasons given for the
decision, the nature of the competing interests involved and the
impact of the decision on the lives and
wellbeing of those affected.’
[97]
Most of the factors referred to in this
judgment are addressed in the DC Policy itself and in my view it
represents a reasonable
one by the City as to how to implement its
power to levy a development contribution being a species of a
development charge which
it is authorised to do in terms of section
40(7)(b) of the SPLUMA.
[98]
I conclude that the DC Policy is not
unlawful, irrational nor unreasonable.
Order
[99]
I accordingly grant the following
order:
The application is
dismissed with costs, including the costs of two counsel where so
employed.
I OPPERMAN
Judge of the High
Court
Gauteng Division,
Johannesburg
Counsel for the
applicant: Adv A Annandale SC and Adv A Friedman
Instructed by: NBA
Attorneys
Counsel for the
respondent: Adv SJ du Plessis SC and Adv N Loopoo
Instructed by: Moodie &
Robertson
Date of hearing: 24 April
2023
Date of Judgment: 22
November 2023
[1]
SAPOA
also seeks declarators that in any land development application
brought within the City’s jurisdiction, the City is
entitled
to impose, as a condition on the granting of the application, a
condition that the applicant must pay development charges;
that the
development charges envisaged must relate to the provision by the
City of external engineering services as defined in
section 1 of the
SPLUMA
in
respect of the specific development to which the application
relates
;
that the City is precluded from imposing any condition on the grant
of a land development application which has the effect of
requiring
the applicant to pay a development charge or contribution which
relates to services and/or infrastructure provided
by the City in
relation to the provision of external engineering services
other
than to the development to which the application relates
and that should any amendment be made to the SPLUMA, to the
Municipal Fiscal Powers and Functions Act, 12 of 2007
, or to any
other national legislation which, in the view of either of the
parties, authorises the imposition of development charges
or
contributions outside of such parameters, either of the parties to
this application would be authorised to approach this court
on the
same papers duly supplemented for the variation of the orders
envisaged.
[2]
Section
156(1)
lists matters in Part B of Schedule 4 and Part B of Schedule
5 and provides that it may administer any other matter assigned to
it by national or provincial legislation.
Section 155(7)
deals with
the national and provincial governments’ legislative and
executive authority in respect of the effective performance
by
municipalities of their functions.
[3]
Section
3
of the SPLUMA
[4]
Section
4(d)
of the SPLUMA
[5]
Section
40(7)(a)
of the SPLUMA
[6]
Section
40(7)(b)
of the SPLUMA
[7]
See
section 40(7)(c)
of the SPLUMA
[8]
Section
40(7)(d)
of the SPLUMA
[9]
Section
40(7)(e)
of the SPLUMA
[10]
Section
40(7)(f)
of the SPLUMA
[11]
Section
40(7)(g)
of the SPLUMA
[12]
Section
49(1)
of the SPLUMA
[13]
Section
49(2)
of the SPLUMA
[14]
Section
49(3)
of the SPLUMA
[15]
Section
49(4)
of the SPLUMA
[16]
Section
49(5)
of the SPLUMA
[17]
Section
15(1)(b)
of the by-law
[18]
See
sections 46(3)
and
46
(4) of the by-law
[19]
Annexure
NG3 p 01-99
[20]
Annexure
NG3 p 01-99
[21]
Natal
Joint Pension Fund v Endumeni
2012 (4) 593 (SCA) at para 18;
Tshwane
Metropolitan Municipality v Blair Atholl Homeowners Association
2019
(3) SA 398
(SCA) at paras 66-69;
University
of Johannesburg v Auckland Park Theological Seminary
2021
(6) SA 1
(CC);
National
Credit Regulator v Opperman
2013 (2) SA 1
(CC) at para 96;
Cross-Border
Road Transport Agency v Central African Road Services (Pty) Ltd
2015 (5) SA 370
(CC) at para 22;
Commissioner,
South African Revenue Service v Bosch
2015 (2) SA 174
(SCA) at para 17;
Comwezi
Security Services (Pty) Ltd v Cape Empowerment Trust Ltd
[2012] ZASCA 126
at para 15
[22]
Commissioner,
South African Revenue Service v Bosch
2015 (2) SA 174
(SCA) at para
17. See also Comwezi Security Services (Pty) Ltd v Cape Empowerment
Trust Ltd
[2012] ZASCA 126
at para 15
[23]
Plascon-Evans
Paints (Tvl) Ltd. v Van Riebeeck Paints (Pty) Ltd
.
[1984] ZASCA 51
; ,
1984 (3) SA 623
(A) at 634-5
[24]
A
clear right, apprehension of harm and no suitable alternative
remedy.
[25]
Clauses
4.1, 7.1, 9.2, 10.1.1, 10.1.2, 10.1.3
[26]
2010
(3) SA 293
(CC) at [51]
[27]
[2004] ZACC 15
;
2004
(4) SA 490
(CC) at 45
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