TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: September 28, 2026 Report No. SI-26-024
TO: Council
FROM: Judy Kitts, Director, Strategic Initiatives
SUBJECT: Municipal Facilities, Options Analysis
RECOMMENDATION:
Recommendation
That Council:
1. Award Contract SI 26-01, Project Management Services for the Municipal Facilities Options Analysis, to M3 Development Management Ltd. for Phase 1 of the project in the amount of $61,200, excluding GST; and
2. Allocate a Phase 1 total project budget in the amount of $150,000 to come from the contingency account.
Body
EXECUTIVE SUMMARY:
To seek Council approval to award Request for Proposal (RFP) SI 26-01 for Project Management Services and an overall project budget related to the Municipal Facilities Options Analysis. The proposed work will evaluate future uses of the Temporary Fire Hall, review accommodation options for the Victoria Police Department Esquimalt Division and identify opportunities to address space constraints within Municipal Hall. The resulting analysis will support future Council decision-making regarding municipal facility investments and accommodation planning.
BACKGROUND:
The Township's new Fire Hall is anticipated to open in Q1 2027. Upon completion of the facility, the Esquimalt Fire Department will relocate from the Temporary Fire Hall to its new location at 550 Park Place. The Temporary Fire Hall is expected to have a remaining service life of approximately 15 years and presents an opportunity for future municipal use.
At the same time, office space within Municipal Hall is at capacity. The Victoria Police Department (VicPD) Esquimalt Division currently occupies space on the first floor of Municipal Hall. Staff have identified a need to review future accommodation requirements for both VicPD and municipal operations and assess options that optimize the use of existing municipal facilities.
On July 6, Council considered Report No. EPW-26-008 regarding the Facilities Asset Management Plan, and through that report, Council directed staff to explore future use options of the Temporary Fire Hall.
On July 16, 2026, the Township issued RFP SI 26-01 seeking a qualified project management consultant to lead a facilities options analysis. The assignment includes reviewing future uses for the Temporary Fire Hall, assessing accommodation options for VicPD, and identifying opportunities to create additional municipal office space. As part of this project, additional consultant services will be required, including architects and engineers. The project will culminate in a report to Council identifying and recommending a preferred option for further consideration.
ANALYSIS:
Procurement Process
The procurement process was undertaken in response to Council's direction to further evaluate future use options for the Temporary Fire Hall and identify opportunities to optimize municipal accommodation needs. To support this work, staff determined that specialized project management expertise would be required to coordinate technical assessments, interest holder engagement, cost estimating, and development of recommendations for Council consideration. The RFP was issued on July 16, 2026, and closed on August 10, 2026. The evaluation criteria included methodology and work plan (25%), schedule (5%), key staff qualifications and experience (30%), references (10%), and fee proposal (30%).
Staff received 18 submissions. A review committee of three staff members evaluated proposals against the published criteria and identified M3 Development Management Ltd. (M3DM) as the highest-ranked proponent.
M3DM demonstrated significant experience with options analysis planning, project management, and interest holder coordination. The proposal provided a clear methodology for evaluating options, managing specialized consultants, developing conceptual costs and schedules, and supporting Council decision-making.
The outcome of Phase 1 will be a facilities options analysis intended to support future Council decision-making regarding municipal accommodation needs and the future use of the Temporary Fire Hall.
Award of this contract represents the next step in carrying out Council's direction from Report No. EPW-26-008. The resulting analysis will provide Council with the information required to evaluate future uses of the Temporary Fire Hall, address accommodation pressures within Municipal Hall, and determine an appropriate path forward before any future capital investment decisions are made.
OPTIONS:
Option 1 (Recommended):
• Award Contract SI 26-01, Project Management Services for the Municipal Facilities Options Analysis, to M3 Development Management Ltd. for Phase 1 of the project in the amount of $61,200, excluding GST, and allocate a Phase 1 total project budget in the amount of $150,000 to come from the contingency account.
This option enables the Township to proceed with a comprehensive facilities options analysis to support future Council decision-making regarding the Temporary Fire Hall, the Victoria Police Department Esquimalt Division space within Municipal Hall, and future municipal accommodation needs.
Option 2:
• Direct staff to cancel the procurement process and not proceed with the Municipal Facilities Options Analysis at this time.
COUNCIL PRIORITY:
Good Governance & Organizational Excellence
FINANCIAL IMPACT:
The proposed contract value for Phase 1 is $61,200, excluding GST. If approved, funding of $150,000 for this project will be allocated from the 2026 contingency account. Currently, there is a sufficient balance to fully fund the requested amount.
While the RFP requested proponents provide pricing for future phases, only Phase 1 is being awarded at this time. Any future work associated with design development, tender preparation, or construction management would be subject to separate Council approval and available funding.
COMMUNICATIONS/ENGAGEMENT:
Engagement during Phase 1 will include Township staff, the Victoria Police Department, and any specialized consultants retained by the Project Manager to support the analysis.
The consultant will engage key interest holders to identify operational requirements, space needs, security considerations, accessibility requirements, and future growth considerations. Public engagement is not anticipated as part of this phase, as the work is focused on technical analysis and development of options for Council consideration.
TIMELINES & NEXT STEPS:
Following Council approval, staff will execute a Professional Services Agreement with the successful proponent and initiate Phase 1 of the project.
The anticipated timeline is as follows:
• October 2026: Contract award and project initiation;
• November 2026 - February 2027: Completion of facilities options analysis, interest holder engagement, and technical review;
• February 2027 - March 2027: Presentation of findings and recommended option to Council for consideration.
Council will receive a future report presenting the results of the analysis, including comparative costs, benefits, risks, implementation considerations, and a recommended path forward.
Approval of this contract authorizes only the completion of Phase 1. Any future design, renovation, tendering, or construction work associated with a recommended option would be subject to separate Council approval and funding authorization.
REPORT REVIEWED BY:
1. Ian Irvine, Director of Finance, Reviewed
2. Deb Hopkins, Director of Corporate Services, Reviewed
3. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. RFP No. SI 26-01: Project Management Services for Municipal Facilities Options Analysis