Answers

1. Where and what is the Saanich Operations Centre?

   • The Saanich Operations Centre (formerly known as the Parks and Public Works Yard) is located at 1040 McKenzie Avenue and houses all of the District’s Parks and Public Works staff and operations.

   • More than 300 staff work at or report out of this location.

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2. What services are delivered from the Saanich Operations Centre?

   • Currently, all of Saanich’s Parks and Public Works operations are based at the Saanich Operations Centre.

   • This includes all staff in the Parks Division (Park Operations; Parks Planning and Development; and Community Development; Administrative) and all Public Works Divisions (Waterworks; Storm and Wastewater; Street Operations; Fleet and Solid Waste; Surveys; and Support Services). The Stores Division which falls under the Finance Department oversees the ordering, stocking and supply for materials used for all site divisions.

   • These teams support and are responsible to deliver the following services that support a high quality of life for Saanich residents:
   • Transportation: Saanich transportation infrastructure includes 178 km of major or collector roads, 370 km of residential roads, 151 km of bike lanes, 286 km of sidewalks and 32 bridges.
   • Parks: 171 parks covering 8.55 km²/ 855 hectares pluss100 kilometres of trails.
   • Water: The water infrastructure has been in existence since the early 1900’s and includes 550 km of pipe, over 29,000 water services, 4 reservoirs, 18 pump stations, and 2,300 fire hydrants.
   • Solid waste: District fleet collects curbside garbage including organics from 32,000 households. Annual garbage and organics volumes are 10,000 tonnes each.

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3. What is the purpose of the Saanich Operations Centre Redevelopment Project?

   • We need to ensure these critical municipal services will continue to be delivered well into future.
   • More than 300 staff are working in sub-standard facilities more than 60 years old; the age and condition of these facilities pose unnecessary risk to our service delivery.
   • Our vision for the redevelopment project is to ensure service interruption risks will be minimized as much as possible and that our infrastructure will be dependable and able to continue to support a high quality of life for Saanich residents.
   • These critical services require a highly technical, robust and resilient facility constructed to a high standard to last up to 80 years into the future.
   • The project objectives include a three-fold vision of service delivery, healthy environment and community vitality.

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4. Why is the redevelopment of Saanich’s Operations Centre such an important priority?

   • The Saanich Operations Centre is our number one priority due to several factors including the:
   • importance of services that are supported through the facility. These services are vital to the health, safety and well-being of the community.
   • facilities being well beyond their life cycle and serviceability.
   • facilities no longer being able to support staff safely due to non-conformance to building codes and relevant standards and practices.
   • facilities being more expensive to maintain and requiring significant effort to manage minimum standards of health and safety.
   • insufficient space, area and fit-out to adequately support staff work duties to deliver services to residents; and
   • increasing risk in the facilities’ ability to adequately support staff delivery of critical services delivery to residents and taxpayers.
   • Saanich’s population has increased 50 per cent since the facilities were built. This puts increased pressure on the facility, the site infrastructure and staff. Looking to the future, these pressures are unsustainable and action should be taken to address them.
   • Given the District’s estimated population growth and development over the coming decades and the need to continually manage and replace our infrastructure as necessary, the prioritization factors these into our understanding of the required increased capacity for the facility and operations.
   • The redevelopment of the operations centre reflects the commitment of Council and staff to providing high quality service and ensuring public safety.

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5. What are the physical constraints and challenges of the current facilities?

   • Most people would be surprised by the outdated poor condition of the buildings. Overall the buildings contain a concerning number of issues.
   • These facilities have served their purpose and are at their end of service life. In addition, they do not comply with life safety requirements of the building code as well as the standards required for a post-disaster operations centre.
   • Particular concerns include un-sprinklered large wooden buildings; structures that could not withstand an earthquake of even modest magnitude; facility inaccessibility for staff or visitors with disabilities; and exceeded distances for the safe exit of staff from certain areas of the building.
   • These examples are only a few of the many deficiencies that staff face on a daily basis. Saanich cannot continue to accept this situation due to the risks experienced by staff in these work environments which affect safety, efficiency, and morale.

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6. Does the District have a process or framework for this project?

   • In April 2018, Council adopted the Strategic Facilities Master Plan. In it, the Saanich Operations Centre (then referred to as the Parks and Public Works Yard) is identified as our top priority for capital investment.
   • This redevelopment project is the first step in implementing the Facilities Master Plan which is a framework that will guide our work to improve and maintain facilities now and in the future.
   • As part of the development of the Strategic Facilities Master Plan, a report card confirmed the high risk to service delivery posed by the deteriorating state of the facilities at the Saanich Operations Centre.

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7. How will this project impact property taxes? Will it impact commercial property taxes differently?

   • If approved, the average homeowner will see a per year 0.85% tax increase for four years. This is included in the previously approved debt servicing funding strategy.
   • In addition, the average homeowner will experience:
   • a $3.60 per year increase for four years to their water utility bill;
   • a $4.00 per year increase for four years to their sewer utility bill, and;
   • a $1.70 per year increase for four years to their solid waste services utility bill.
   • Commercial property tax rates will be impacted in the same way as residential property tax.

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8. Why is the District of Saanich suddenly now using AAPs to gain elector assent for borrowing? Why weren’t AAPs used in the past and what has changed?

   Financial pressures caused by external factors such as inflation and the increased cost of goods and services has resulted in the District of Saanich reaching its borrowing cap (borrowing where the costs for servicing its total debt exceed 5% of eligible revenue).

   When municipalities reach a point when the costs for servicing their total debt exceed 5% of eligible revenue, elector assent is required. An AAP is a provincially legislated, cost-effective, and efficient way to gauge support and gain public assent for project borrowing.

   AAPs are commonly used for existing essential services that require capital renewal. The District chose not to have a referendum because they are resource intensive processes and most often are used to obtain electoral approval on new services, not existing ones. A referendum can delay timelines and increase costs of a project in numerous ways, including through construction inflation, which is currently increasing by approximately 5-10% per year. In the case of the SOC Redevelopment Project, a delay of even a year could result in the project cost increasing by more than $17M.

   It’s important to note that borrowing is an important tool that municipalities use to help spread the financial impact of major expenditures over several years, rather than one sharp tax increase. This helps to ensure taxpayers don’t become overburdened with higher-than-normal annual tax increases.

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9. Does Saanich need to build new or can the existing facility be repaired and renovated?

   • The existing facilities were constructed and assembled between the late 1950s and mid-1970s. While they were adequate at the time, they no longer conform to building codes and operational standards and practices.
   • Renovations to the buildings to bring them up to current codes and standards would be so extensive in scope and cost that doing so would be a poor use of public money.
   • Renovating existing facilities that were built to accommodate less than half of our necessary projected staff would result in a facility requiring significant additions and modification in the near future.
   • We are looking ahead by considering a building that will last for 80 years.

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10. What are the project design goals?

    • Delivery of services is our primary objective. Services must meet minimum levels and delivered sustainably long into the future.
    • Environmental targets focused on the reduction of greenhouse gas emissions. Specifically, to get to net-zero within 30 years. Our facility should also reflect design strategies that support climate change resilience.
    • Environmental restoration - while the risk of soil contaminants present on site is low, the opportunity to renew the site as well as to restore Public Works Creek will be a positive benefit.
    • First Nations reconciliation - this project has the opportunity to seek mutual benefits for Saanich and the local First Nations.
    • Best workplace practices to incorporate building code and WorkSafe BC guidelines and practices in any scenario.

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11. Are there no other suitable locations for the construction of this facility?

    • We undertook 18 months of extensive review and analysis of all District properties starting in 2018 which confirmed there are no other available sites to relocate the operations centre.
    • Through our GIS database, we reviewed all properties of a minimum six acres in area for our operations. Although the process included contact with several owners of potential criteria meeting site requirements, no alternate site opportunities materialized.
    • We also engaged an external consultant to conduct an independent review through a marketplace solicitation which resulted in no alternate sites identified as suitable for District purposes.
    • In September 2019, Council endorsed the staff recommendation that the operations centre should remain located at 1040 McKenzie Ave.

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12. What work on the redevelopment project has been completed so far?

    • Our design consultants reviewed our current operations and understand the number of staff and the spatial requirements required to perform their duties. They also advised how we might better locate staff so that a future facility could improve efficiency and enable staff to deliver services better.
    • Our consultants looked ahead 20 to 40 years to understand what work areas may change and how the planned facilities can accommodate growth.
    • The conceptual plans reflect a robust testing of ideas starting with four site plan concepts, narrowing down to two and then finally to one. Through this iterative process, departmental staff were involved in evaluating and pursuing improvements of the plans.

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13. What is the estimated project budget for the redevelopment project?

    The District has committed to borrowing no more than $150M to fund the redeveloped Operations Centre.

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14. How will the redevelopment project benefit the community/surrounding local areas?

    • The conceptual site layout confirms opportunities for the project to benefit not only our operations, but to also support our Official Community Plan’s designated Quadra-McKenzie Neighbourhood Centre.
    • Through planning that improves the McKenzie frontage and accessible green space adjacent to Public Works Creek, opportunities for commercial and retail lease spaces and third party development will benefit the community and support the Neighbourhood Centre.
    • We will explore opportunities to incorporate other site uses including new green space, exterior public amenities, and possible non-District uses such as residential and commercial.
    • The co-location of public and private interests on municipal property will support the Quadra McKenzie neighbourhood’s growth and prosperity.
    • In addition to environmental restoration, providing public green space as well as re-imagining the Quadra-McKenzie corridor, the redevelopment project for the Saanich Operations Centre is an opportunity for a shared future; a shared future which will mutually benefit us all.

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15. What is the intention behind proposing other uses on the site?

    • Through the conceptual planning completed to date, the site has opportunities to condense operations and to reimagine the site as more efficient and providing space, area and volume for other uses.
    • The identification of available space and the inclusion of other uses, specifically commercial and residential use opportunities, will provide:
    • opportunity to support the OCP and more strongly realize the Neighbourhood Centre designation of the Quadra/ McKenzie area.
    • opportunity for increased density on the site that will directly benefit from the location via access to several regional bus routes, immediate adjacency to regional bicycle and pedestrian paths and centrally located in the District on key major roads.
    • a template for economic growth and community vitality.
    • a potential revenue opportunity for the District that can positively impact the project’s cost and affordability.

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16. What are the next steps for the redevelopment project?

    Over the next six months, the District intends to undertake the Alternate Approval Process (AAP), Property Rezoning and first round of public procurement though a Request for Qualification (RFQ). The AAP is necessary to confirm public assent to fund the project through borrowing, while a rezoning of the property is necessary to ensure that future uses are compatible with the Official Community Plan (OCP) and the proposed concept plan.

    The goal of issuing the RFQ to the private sector is to identify parties interested in participating in the redevelopment project. Through this process a Development Partner will be appointed who will do the detailed design and construction for the District facilities.

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17. What is happening with the Yard and Garden Waste Drop-Off?

    • At the March 11, 2024 Saanich Council Meeting, staff presented the challenges of maintaining the Yard and Garden Waste Drop-Off (YGWDO) as part of the SOC Redevelopment. As a result, Council approved a YGWDO redistribution strategy as part of the SOC Redevelopment. Since that time, the site layouts have not included the YGWDO program as part of the SOC Redevelopment.

    • Staff are currently pursuing all options which include a continued search for an alternative location, enhancing the existing green bin program, piloting new large green carts (360L), promoting backyard composting, and collaborating with external service providers. You can find the Council Report here. 

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18. What is the proposed project schedule?

    After securing the Development Partner in early 2026, the District will advance the design to construction ready documentation. Construction would begin in 2028 with completion planned for 26 to 30 months after.

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19. How will Saanich pay for this project and will residents have a say?

    • The District’s funding strategy will incorporate a combination of reserve funds and borrowing.
    • The District will require resident approval to borrow money to finance the project. This could be done through an Alternative Approval Process.
    • The Alternate Approval Process will allow District residents to indicate if the impact on taxation to complete this project is supportable.
    • Additional engagement will take place during the AAP to ensure a well-informed decision is made.

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20. How can residents learn more about the redevelopment project?

    • The most up to date information about the Saanich Operations Centre is available at saanich.ca/socplan.
    • Residents can attend an upcoming Pop-up session at the Saanich Operations Centre on Saturday, May 24 from 1-5 p.m. at the bucket shed. See the Event Listing.

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21. What are the significant project benefits and attributes that residents should be aware of and how might these relate to the recent Quadra McKenzie Plan updates?

    Despite the site serving as a key hub for critical infrastructure delivery and maintenance that the District relies heavily on, it has long been underutilized and has outdated and non-compliant facilities. By redeveloping the site, Saanich will finally see a modern and efficient headquarters realized for District Public Works staff.
     
    In addition to remediating the site, upgrading infrastructure and restoring natural features, this project will see a strategically located public property in the heart of one of the District’s key residential and commercial centres densified through a comprehensive mixed use development.
     
    This project is closely aligned with the Quadra McKenzie Plan through the integration of uses that strengthen the role of Quadra/ McKenzie centre as an area for population and employment growth. The addition of housing and jobs and the delivery of public services will contribute to Saanich’s sustainability goals. Further, public realm improvements on McKenzie Avenue and Borden Street will help enhance conditions for pedestrians, cyclists and transit users, enhance area aesthetics and serve to create a cohesive urban environment.

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22. Does the $150M borrowing limit include the construction of residential towers?

    • No, the District’s proposed budget for this project will only fund the design and construction of its Operations Centre.

    • The development partner engaged by the District will be constructing on the residential parcels of the site. The developments undertaken will be based on demand and viability at the time and is totally the risk of the Development Partner.

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23. Is the District undertaking a public private partnership (P3) with the private sector / development community?

    • While the District is seeking a development partner to design and build the Operations Centre, the design-build contract is not a P3 arrangement.

    • The District intends to have funding in place prior to engaging a team to design and build the facility.

    • The District will not participate in a contract that includes financing terms shared with a Development Partner.

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24. Can you please clarify if the District is selling or leasing its properties to the private sector / development partner for the residential development?

    • The District will be offering a 99-year ground lease to a development partner for residential development.

    • The private sector partner will make a one-time payment to the District for use of the property.

    • Value of the payment that the District could expect will be dependent on the market value of the development partner’s proposal.

    • Municipal taxes will be collected on the development partner’s leased property.

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25. What assurances are there that a development partner will actually construct the Operations Centre and potentially only realize the residential development?

    • The District’s contract, and the current Request For Qualifications (RFQ) opportunity posted for the development community, stipulates the primary obligation and responsibility for a development partner is to design and construct the Operations Centre.

     

    • The development partner could begin construction simultaneously on both the Operations Centre and residential development, however, they cannot proceed first on the residential development and delay construction of the Operations Centre.

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26. Will the residential development include two eighteen storey towers?

    • The development partner could construct residential development on one or both designated parcels. Should market demand and financial capacity of the development partner manage a scale of project conforming to the current OCP height of eighteen stories, it is possible that two residential towers of eighteen stories could be realized.

    • However, recent regional and national market and financial factors suggest that lower height and density is a more probable outcome.

    • A development partner will advance the master site plan and detailed design over the next two years. This work will inform the proposed development density and required Development Permit (DP) application.

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27. Will the $150M funding go towards all new facilities as well as underground parking for operations vehicles and staff?

    • Current construction budget cost estimating has confirmed that replacing all facilities on the site and providing underground or structured parking is not financially feasible within the funding envelope.

    • As such, the current estimates do not support replacement of the existing Fleet building.

    • All vehicle parking (operations fleet and staff) is anticipated to be surface parking.

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28. How was the $150M borrowing ceiling determined?

    • The Council Report dated October 7^th, 2024 and specifically, the “Development and Transaction Analysis Report” (Saanich Operations Centre) lists the project budget on page 9.

    • The estimated project cost value reflects best industry advice, which includes conservative allocations of contingency, escalation and risk in addition to design and construction.

    • The $150M borrowing ceiling was arrived at by subtracting the estimate residual land value (estimated at the time to be approximately between $20M and $30) from the estimated total project budget.

    • This is further described in the accompanying Council Report MetaViewer.php.

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29. Why did the District of Saanich purchase three properties on Lochside Drive? How does the purchase of these properties relate to the SOC Redevelopment Project?

    Saanich purchased 3 properties on Lochside Drive in February 15, 2024 for $25M.  When determining the valuation of the property, Saanich was not able to rely on BC Assessment’s valuation as assessments, while intended to estimate market value, may not be an accurate estimate, particularly for unique properties where there is a lack of comparable property sales.  The District relies on advice from independent property appraisers who provide more complete information about the market for similar properties and an estimate of market value. The Lochside properties were already zoned M-1 (Industrial as per Section 901.1 of the Saanich Zoning Bylaw 8200 zone8200.pdf) which is very difficult to find in the District of Saanich and which are generally in higher demand and command a higher price. 

    The opportunity to purchase a newer facility (recently built in 2018) with purpose-built buildings specifically suited for industrial operations, resulted in direct cost savings for Saanich and taxpayers when compared with other available options. The operational and capital costs offset from other projects by this purchase are estimated to be approximately $50M to $60M if the District proceeded to develop and construct a purpose-built building and temporarily relocate operations and staff.

    Purchasing the Lochside properties will allow for the long-term operational benefits and strategic advantages for the District of Saanich. The properties will become the new Parks Operations Centre in the next few years and the site’s proximity to our existing Operations Centre provides logistical advantages, allowing for seamless integration into our ongoing operations as well as a centralized space to provide better support of our high level of services to our residents.

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