TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: September 21, 2026 Report No. ADM-26-043
TO: Council
FROM: Deb Hopkins, Director of Corporate Services
SUBJECT: Establishment of Small-Scale Multi-Unit Housing Administrative Advisory Group
RECOMMENDATION:
Recommendation
That Council:
1. Rescind the resolution from the July 20, 2026 Council meeting “That Council direct staff to begin preparations to establish a select committee following the October 2026 municipal election, to work through the technical, legal, and financial details behind targeted bylaw amendments; and that the newly struck committee establish reporting deadlines”; and
2. Direct staff to establish a Small-Scale Multi-unit Housing Administrative Advisory Group that reports to the Director of Development Services to work through the technical, legal, and financial details behind related Zoning Bylaw and policy amendments, and that the Director, in collaboration with the Administrative Advisory Group, establish reporting deadlines.
Body
EXECUTIVE SUMMARY:
Following a detailed review of the July 20, 2026 Council resolution, staff have identified several legal risks associated with implementing the select committee model as directed. The Administrative Advisory Group structure proposed in this report as an alternate solution achieves the same substantive goals of gathering expert community input to shape Small-Scale Multi-Unit Housing (SSMUH) developments in Esquimalt through Zoning Bylaw and related policy amendments while protecting Council's integrity and the Township's legal standing.
BACKGROUND:
In June 2024, Council adopted amendments to the Zoning Bylaw to allow for Small-Scale Multi-unit Housing (SSMUH) developments in the Township of Esquimalt in accordance with changes to provincial legislation. In April 2026, recognizing that implementation would require ongoing community input, Council directed staff to engage a consultant to conduct structured public engagement on how SSMUH developments are evolving in Esquimalt. At a meeting held July 20, 2026, Neuquinn Consulting presented their findings to Council. Based on the community's feedback, the consultant recommended establishing a committee to guide technical bylaw and policy refinements. Council responded by directing staff to establish a select committee, through the following resolution:
“That Council direct staff to begin preparations to establish a select committee following the October 2026 municipal election, to work through the technical, legal, and financial details behind targeted bylaw amendments; and that the newly struck committee establish reporting deadlines.”
Upon further review of Council’s resolution, staff determined that the direction as provided could not be appropriately implemented as it creates some important legal and procedural risks for the municipality. Therefore, staff are requesting a technical change in direction to mitigate these risks. The Administrative Advisory Group model being proposed in this report will deliver the community engagement and technical rigour Council intended, without exposing the Township to bias challenges or procedural vulnerabilities that could undermine any resulting bylaw or related regulatory framework amendments.
ANALYSIS:
After considering the options for establishing an SSMUH committee, staff have identified some significant legal concerns with proceeding as directed by Council. The July 20, 2026 Council resolution, as currently stated, creates the risk of conflict of interest and disqualifying bias for any participating Council members.
There are two significant challenges arising related to Council’s legal requirements for Public Hearings and the statutory requirements for select committees.
1. Legislatively, Zoning Bylaw amendments generally require that a Public Hearing be held prior to adoption of any proposed amendments. The Local Government Act requires that members of Council maintain an open mind and be open to persuasion throughout the Public Hearing process.
2. The Community Charter requires that any select committee established by Council has at least one member of Council appointed as a voting member.
If a Council member participates in shaping the recommendations that will later come before them at a Public Hearing such as through a recommendation made by a select committee that they are appointed to, they are reasonably seen to have pre-judged the outcome. This is not a minor technical concern, but rather the kind of apprehension of bias that can invalidate a bylaw adoption and expose the Township to legal challenge and raise issues of disqualification for the Council member.
Section 142 of the Community Charter, which provides Council with the authority to establish select committees, does not contemplate differing categories of members. A member is a person appointed by Council who must vote when in attendance at meetings. No appointed member is permitted to abstain from voting, and any member who does not indicate their vote on a matter is presumed to have voted in favour as outlined in the Community Charter (s. 123) and the Council Procedure Bylaw, 2022, No. 3081 (s. 34). The identified risk cannot be designed away within this structure.
Under the proposed select committee model, there is no way for Council to be able to comply with the provisions of both statutes.
To mitigate these issues, staff considered making the select committee a sub-committee of the Advisory Planning Commission (APC). The Local Government Act expressly prohibits Council membership and does not allow for Council members to vote on agenda items which helps to address the main concerns previously outlined. However, it introduced additional concerns including meeting the legislative professional composition and residency requirements for membership and similar conflict of interest concerns would also apply to APC members who later participate in a formal APC review of any recommended bylaw or policy amendments. Since members of a select committee, or other committee of Council, are subject to conflict of interest requirements under the Community Charter and the common law/case law findings about an apprehension of bias and disqualifying bias, there is identified risk in dealing with or refuting allegations of a conflict of interest or disqualifying bias on the part of a Council member and an APC member that ultimately also renders this model unfeasible.
The Administrative Advisory Group model resolves all these issues. By reporting directly to the Director of Development Services, and not to Council, the group operates outside the legislative framework that creates these identified risks, while still producing the rigorous, community-informed recommendations that Council and the broader public are seeking.
The Small-Scale Multi-Unit Housing Administrative Advisory Group will be a time-limited, staff-supported body with a clear and focused mandate to develop well-grounded recommendations on SSMUH zoning and policy for the Director of Development Services (see Attachment 1). To operate within the legal framework, the following parameters will apply:
• The Terms of Reference are not approved by Council, as this is not a Committee of Council.
• No member of Council will participate as a member of the group.
• The group has no delegated authority to expend public funds, make policy, or pass bylaws.
• The advisory group reports its findings directly to the Director of Development Services.
• The Director of Development Services or designate shall bring the group's recommendations to Council through an official staff report at an open meeting.
The recommendations will help shape any necessary amendments to the Zoning Bylaw and related policies to guide Small-Scale Multi-Unit Housing developments in the Township.
As part of the recommended actions related to establishing this working group the consultant proposed establishing interim and final reporting deadlines (March and June 2027 respectively). However, these timelines need to retain some flexibility to allow for a realistic start date recognizing the Election in October 2026, and to ensure the group has the time it needs to do the work thoroughly, while remaining mindful of the finite nature of its mandate and the importance of its outcomes to a wide range of community interest holders.
Once the Administrative Advisory Group's recommendations are complete, the Director of Development Services or designate will take them through the appropriate Council Committees for input before presenting a final report to Council for direction on any desired regulatory amendments.
OPTIONS:
• Option 1 - Recommended:
Rescind the July 20, 2026 resolution and direct staff to establish the Administrative Advisory Group reporting to the Director of Development Services, with reporting timelines set collaboratively by the advisory group and the Director. This is the option that achieves Council's stated goals without legal risk.
Proposed Motion: That Council:
1. Rescind the resolution from the July 20, 2026 Council meeting “That Council direct staff to begin preparations to establish a select committee following the October 2026 municipal election, to work through the technical, legal, and financial details behind targeted bylaw amendments; and that the newly struck committee establish reporting deadlines”; and
2. Direct staff to establish a Small-Scale Multi-unit Housing Administrative Advisory Group that reports to the Director of Development Services to work through the technical, legal, and financial details behind related Zoning Bylaw and policy amendments, and that the Administrative Advisory Group, in collaboration with the Director, establish reporting deadlines.
• Option 2 - Request Additional Information:
Direct staff to provide further information before proceeding. Staff note that the analysis is thorough and the legal concerns are well established. Delays may affect the Township's ability to meet community expectations on SSMUH progress.
Proposed Motion: That Council direct staff to provide additional information.
• Option 3 - Alternate Direction:
Council may provide alternate direction for staff. Staff would welcome the opportunity to discuss any alternative approaches and their implications.
Proposed Motion: That Council provide alternate direction to staff.
COUNCIL PRIORITY:
Housing
Good Governance and Organizational Excellence
Engaged and Healthy Community
FINANCIAL IMPACT:
There are no related financial impacts.
COMMUNICATIONS/ENGAGEMENT:
• Recruitment for the Administrative Advisory Group will be well publicized to attract broad interest and participation to help meet the diverse membership goals.
TIMELINES & NEXT STEPS:
Should Council direct staff to establish the Administrative Advisory Group reporting directly to the Director of Development Services, the next steps will include:
• Finalizing the Terms of Reference and assigning official staff resources;
• Initiating recruitment for volunteer members and appointing members;
• Determining the start date, scheduling the first meeting, and establishing a regular meeting schedule thereafter;
• Establishing reporting timelines;
• Submitting final recommendations to the Director of Development Services;
• Presenting the recommendations to the applicable Committees of Council for input (Director of Development Services or designate); and
• Presenting the final recommendations to Council for direction on any required Zoning Bylaw amendments and other policy changes related to SSMUH developments in Esquimalt (Director of Development Services or designate).
REPORT REVIEWED BY:
1. Ian Irvine, Director of Finance, Reviewed
2. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Example of a Draft SSMUH Administrative Advisory Group Terms of Reference