TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: July 6, 2026 Report No. EPW-26-008
TO: Council
FROM: Joel Clary, Director of Engineering & Public Works
SUBJECT: Facilities Asset Management Plan
RECOMMENDATION:
Recommendation
That Council:
a) receive the Facilities Asset Management Plan for information;
b) direct staff to request increased infrastructure funding as part of the annual budget process;
c) direct staff to implement the Facilities Asset Management Plan based on available funding;
d) direct staff to explore future uses of the Temporary Fire Hall; and
e) direct staff to update the status of the Facilities Asset Management Plan Council Priority Project to complete;
as described in Staff Report EPW-26-008.
Body
EXECUTIVE SUMMARY:
The purpose of this report is to provide Council with the Township’s first Facilities Asset Management Plan, which builds on recently completed building condition assessments and provides long term planning, including funding levels, for Township owned facilities. In addition, staff are seeking direction on future use of the Temporary Fire Hall facility.
BACKGROUND:
The Township of Esquimalt owns the following ten facilities that are managed by the Parks and Recreation, and Engineering and Public Works departments:
• Archie Browning Sports Centre
• Esquimalt Recreation Centre
• Gorge Pavilion
• Parks Nursery
• Municipal Hall
• Public Works Yard
• Public Safety Building (under construction)
• Temporary Fire Hall
• Library
• Chafe House
As part of the 2023-2026 Council Priorities Plan, the development of an asset management plan to better plan for the long-term management of these assets was identified as a priority project. In 2025, the Township initiated this project by hiring WSP to complete building condition assessments on the following larger, aging facilities:
• Archie Browning Sports Centre
• Esquimalt Recreation Centre
• Parks Nursery
• Municipal Hall
• Public Works Yard
Further information on the building condition assessments, including the reports, can be found in Staff Report P&R-26-005 from the April 20, 2026 Committee of the Whole meeting.
Once the building condition assessments were complete, the Township hired Colliers Project Leaders (Colliers) to complete a Facilities Asset Management Plan. The intent of the plan is to identify further actions needed to improve the overall management of the facilities over the short, medium and long term, as well as to identify the necessary funding requirements over the lifecycle of the facilities. The completed Facilities Asset Management Plan, along with a corresponding presentation by Colliers, are attached as Attachments 1 and 2.
ANALYSIS:
The Facilities Asset Management Plan provides a roadmap for staff to continually improve the management of Township facilities. Similar to other asset management plans, this represents a key step in transitioning the Township from a reactive approach to a more strategic and proactive approach to asset management. To do this, the Plan identifies prioritized next steps over the next 10+ years that require dedicated resources and a more formalized approach to facilities management.
Currently, the Township does not have a dedicated facilities management function to oversee all facilities, and this work is delivered on a largely reactive basis within existing staff resources. While the actions identified in the Plan are supported by staff, advancing this work will require additional capacity, either through contracted services or the establishment of internal facilities management resources. Staff anticipate incorporating these needs into future workforce planning and budget processes to support implementation of the Plan and effective management of Township facilities.
In addition to the need for a formalized facilities management function, the Township does not currently have a dedicated real property function to manage the acquisition, use, and disposal of land and property assets. This is an additional gap that may need to be addressed as the Township advances its asset management program and related planning practices.
The plan explores the funding requirements based on the current replacement cost of each facility and the expected year of replacement. Starting next year, the annual contribution needed to achieve 30% of the required funding in each facility at the time of replacement is $1.8M per year. This annual contribution applies an escalation rate of 3.5% annually to account for construction cost inflation but does not factor any investment interest that would be earned over time. A summary of these long-term funding requirements is shown in Table 28 of the plan.
The FIT Consulting report presented at the November 18, 2024 Committee of the Whole meeting (FIN-24-020) estimated the Township’s facility replacement value at $75.8M and identified an annual funding requirement of $2.4M to support long-term asset renewal. The updated Facilities Asset Management Plan builds on this work using refined asset data, revised assumptions, and updated replacement values, which now estimate the Township’s total facility portfolio at approximately $230M. The Plan applies a funding strategy that targets 30% of the required funding equity at the time of replacement, with debt borrowing used for the remainder. This results in an annual contribution of $1.8M under this approach; however, the significant increase in total replacement value reflects a more complete understanding of the Township’s assets and reinforces that long-term funding needs remain substantial and aligned with the broader infrastructure funding gap identified to date.
Another aspect of the plan is an assessment of the existing capacity of each facility. These were assessed at a high level by staff and identified Municipal Hall, Archie Browning Sports Centre and Esquimalt Recreation Centre as the only facilities at capacity. The Archie Browning Sports Centre and Esquimalt Recreation Centre were separately reviewed in greater detail as part of the Recreation Strategic Plan. Findings from this review can be found in the Recreation Strategic Plan. Capacity constraints at Municipal Hall are related to limited office space remaining and current workforce plans identifying a need for organizational growth. This excludes the portion of Municipal Hall used by VicPD, which is currently identified as underutilized. These findings identify both current pressures and opportunities for improved space utilization.
The plan notes that opportunities exist to consider future uses for the Temporary Fire Hall following completion of the Public Safety Building and relocation of the Fire Department. As the facility is anticipated to have approximately 15 years of remaining service life, the plan recommends undertaking a further study to evaluate these opportunities. Given the current capacity constraints at Municipal Hall, the underutilization of the VicPD space, and the remaining life of the Temporary Fire Hall, staff recommend proceeding with a feasibility study to evaluate potential future uses. As part of this review, staff recommend considering both the option of relocating VicPD to the Temporary Fire Hall and the option of right-sizing VicPD within Municipal Hall, along with any required renovations to either facility. This approach would allow the Township to evaluate how best to right-size space for VicPD while supporting future growth at Municipal Hall and making effective use of existing assets.
OPTIONS:
1. That Council:
a. receive the Facilities Asset Management Plan for information;
b. direct staff to request increased infrastructure funding as part of the annual budget process;
c. direct staff to implement the Facilities Asset Management Plan based on available funding;
d. direct staff to explore future uses of the Temporary Fire Hall; and
e. direct staff to update the status of the Facilities Asset Management Plan Council Priority Project to complete;
as described in Staff Report EPW-26-008.
2. That Council request additional information from staff.
3. That Council provide alternate direction to staff.
COUNCIL PRIORITY:
Good Governance & Organizational Excellence - Facilities Master Plan
FINANCIAL IMPACT:
As described in the Analysis section above, the overall replacement cost of the Township’s facilities is estimated to be $230M. This equates to an annual funding amount of $1.8M in year one, starting next year and increasing annually at 3.5% to ensure 30% of the required funding at the time of replacement. This is one approach to long-term funding for the eventual replacement of facilities; however, other approaches could be taken, including relying on more or less debt financing at the time of replacement. In addition to replacement costs, the building condition assessments identify capital works required to ensure the facilities remain operational during their remaining service life. The cost of these repairs over 20 years, expressed in current (non-inflated) dollars, is estimated as follows:
• Archie Browning Sports Centre = $7.7M ($385k/yr)
• Rec Centre = $8.5M ($425k/yr)
• Parks Nursery = $95,882 ($5k/yr)
• Municipal Hall = $640,279 ($32k/yr)
• Public Works Yard = $572,220 ($29k/yr)
These amounts represent, on average, approximately $876,000 annually over the next 20 years to ensure the facilities continue to meet current service levels. These figures do not account for potential changes in service delivery or facility use and instead assume business as usual.
When combined, this annual capital works funding and the facility replacement funding result in a total average annual funding requirement of approximately $2.7M (in current dollars, excluding inflation). This combined view provides a more complete picture of the Township’s long-term facility funding needs and reinforces that overall funding requirements remain significant. These findings are consistent with the broader infrastructure funding gap previously discussed and support the need for continued, sustained increases in infrastructure funding, building on recent steps taken to increase infrastructure funding.
COMMUNICATIONS/ENGAGEMENT:
During implementation of the Facilities Asset Management Plan, public communications will be undertaken on individual projects, based on the level of impact.
TIMELINES & NEXT STEPS:
Staff will utilize the annual budget process to request resources to implement the Facilities Asset Management Plan and will prioritize recommended projects based on risk, condition, and available funding. As asset management is an iterative process, staff will continue to seek opportunities to reduce risk and optimize lifecycle performance. In addition to capital renewal works identified, the plan recommends enhanced asset management practices and further technical studies to extend the life of assets and reduce overall risk exposure to the Township.
For the Temporary Fire Hall, staff will begin the procurement process in July to retain a consultant to undertake a feasibility study. The study will evaluate the potential relocation of VicPD to the Temporary Fire Hall, as well as alternative future use options for the facility, and will also consider how these options compare with right-sizing VicPD within Municipal Hall. Staff will report back to Council later this year with the results and recommendations.
REPORT REVIEWED BY:
1. Steve Knoke, Director Parks and Recreation, Reviewed
2. Judy Kitts, Director of Strategic Initiatives, Reviewed
3. Ian Irvine, Director of Finance, Reviewed
4. Deb Hopkins, Director of Corporate Services, Reviewed
5. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Attachment 1 - Facilities Asset Management Plan
2. Attachment 2 - Consultant’s Presentation