Unfortunately, the TDG will not be ready for real governance until it develops and perfects some skills for decision making. In Chapter 4, I discuss "Consultation," something most of us do not have.
http://www.tiereddemocraticgovernance.org/tdg-chapter.php?id=4
If the TDG doesn't get the consultation and other skills down first, then the TDG will be no difference than the other organizations.
After a local TDG has been operating for about three years, it might be able to step out of its realm of self-governance. And at that time, it can only advise the current system of governance.
It might be 10 years before the TDG can deal properly with an issue like your Oak Bay scenario.