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Extraordinary Council Meeting held at the Council Chamber, 32 Civic Drive, Greensborough Minutes
Carl Cowie Chief Executive Officer Friday 13 June 2025
Distribution: Public Civic Drive, Greensborough PO Box 476, Greensborough 3088 Telephone 9433 3111 Facsimile 9433 3777 Website www.nillumbik.vic.gov.au Email nillumbik@nillumbik.vic.gov.au
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Extraordinary Council Meeting Minutes 10 June 2025
Nillumbik Shire Council
Contents
4. Apologies/ Leave of Absence
5. Declarations of conflicts of interest
CM.075/25 Community Energy Upgrades Fund Round 2 - Eltham Leisure Centre Electrification
Extraordinary Council Meeting Minutes 10 June 2025
Nillumbik Shire Council
Minutes of the Extraordinary
Meeting of Nillumbik Shire Council held
Tuesday 10 June 2025. The meeting commenced at 8:00 PM.
Councillors present:
Cr John Dumaresq Wingrove Ward (Mayor)
Cr Naomi Joiner Bunjil Ward (Deputy Mayor)
Cr Grant Brooker Blue Lake Ward
Cr Kelly Joy Edendale Ward
Cr Peter Perkins Ellis Ward
Cr Kim Cope Sugarloaf Ward
Cr Kate McKay Swipers Gully Ward
Officers in attendance:
Carl Cowie Chief Executive Officer
Claire Quinlan Chief Operating Officer
Blaga Naumoski Director Governance, Communications and Community Safety
Frank Vassilacos Director Planning, Environment and Strategy
Jeremy Livingston Director Culture and Performance
Katia Croce Manager Governance and Property
Acknowledgement of Country was read by the Mayor, Cr John Dumaresq.
3. Good Governance Pledge
The Good Governance Pledge was read by Cr Naomi Joiner.
4. Apologies/ Leave of Absence
Nil
5. Declarations of conflicts of interest
Nil
Extraordinary Council Meeting Minutes 10 June 2025
6. Officers' reports
Distribution: Public
Manager: Claire Quinlan, Chief Operating Officer
Author: Melinda Miles, Sustainability Project Officer
Summary
The Community Energy Upgrades Fund (CEUF) Round 2 is a federal initiative designed to support local governments in Australia with energy efficiency and electrification upgrades for their facilities to reduce greenhouse gas emissions. It offers up to $2.5 million as 50% matched co-funding.
The Eltham Leisure Centre (ELC) is Council's most emissions-intensive asset. It is responsible for 35% (1992 tonnes of CO2e in FY23/24) of Council's annual Scope 1 and 2 greenhouse gas emissions. The gas plant, installed in 2018 with a remaining 5-6 years expected useful lifetime based on its current (May 2025) condition, is currently responsible for 10% of Council's emissions alone and can feasibly be upgraded to an efficient electric heat pump enabling future zero-emissions operation.
The Opinion of Probable Cost (OPC) for this upgrade is $4.983 million based on a design and construction program between 2026 and 2028.
A CEUF grant would reduce the CAPEX cost of electrification of heating at ELC by 50%. In addition, the electrification upgrade is expected to reduce ELCs ongoing energy OPEX costs. In the first year, electric heating would deliver an estimated energy cost saving of $177,174. (2028/2029). The predicted savings increase annually as gas prices are expected to rise more than electricity in the future (4% vs 2%).
Over the 15-year predicted asset lifetime, Lifecycle Costing Analysis (LCA) factoring in CAPEX, OPEX, loan interest, and inflationary costs predicts a 7-8-year payback period and an overall cost saving of $5.0 million compared with a fully Council-funded (no grant) upgrade by 2030/31 when the current gas boilers need replacing.
In 2030, replacing the gas boilers with new like-for-like gas boilers may or may not be a viable option, depending on regulatory reforms stemming from the Victorian Government’s Gas Substitution Roadmap. If gas replacement is an option, whilst the estimated new gas boiler CAPEX cost is only $312,558 (2030/2031) and could be funded from Council’s programmed CAPEX renewal budget. Due to increasing gas prices, the LCA predicts that this option would result in an additional overall capital and operational cost of $2.0 million.
Upgrading the gas heating plant to electric directly supports Goal 1 of Council's Climate Action Plan 2022–2032, which aims to reduce Council's direct contribution to climate change by achieving net-zero emissions by 2032 and delivers ongoing operational cost savings.
This report seeks councillor support to apply to the Community Energy Upgrades Fund Round 2 for funding for 50% of the project costs of the electrification of the gas plant at the Eltham Leisure Centre, and commitment to obtaining a loan from the Treasury Corporation of Victoria (TCV) for the remaining 50% of funds ($2,491,500) if the grant application is successful.
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SECONDED: Cr Grant Brooker That Council: 1. Endorses a decision to apply to the federal Community Energy Upgrades Fund Round 2 grant program for funding to electrify the Eltham Leisure Centre, noting that a 50% Council funding co-contribution is required. 2. Authorises the Chief Executive Officer to sign the Community Energy Upgrades Fund Round 2 Funding Agreement should the grant application be successful. 3. Authorises the Chief Executive Officer to obtain a loan from the Treasury Corporation of Victoria (TCV) for the remaining 50% of funds ($2,491,500) should the grant application be successful. 4. Makes public the decision regarding the grant application and loan commitment, but the Eltham Leisure Centre Electrification Concept Report (Attachment 1) remain confidential on the grounds specified in the definition of confidential information in section 3(1)(a) of the Local Government Act 2020. |
For: Crs Grant Brooker, Kim Cope, John Dumaresq, Naomi Joiner and Kate McKay
Against: Crs Kelly Joy and Peter Perkins