For councils and boards
Questions councils ask us
Who owns the equipment.
We do. We pay for the plant, we install it, and it stays ours for the whole term. That is the structure of the arrangement: the party that owns the equipment is the party that pays when it breaks. Your building keeps its suites and its structure, and your agreement lists exactly what sits inside our scope.
What if it breaks at 2 a.m.
You call one number and a person answers. We monitor the plant remotely, so in many cases we already know and are already on the way. Our response times are written into the agreement rather than promised on a website : a technician on site within four hours for loss of heat or hot water, and within one business day for loss of cooling. You authorise nothing, and you receive no invoice.
What does the fee cover.
The capacity charge covers the plant and everything we do to keep it running: maintenance, monitoring, parts, labour, repairs and replacement. The second line on the statement is the energy the building used, billed at what we paid for it. There is no third line.
Does the fee change.
The capacity charge is fixed for the term. The energy line moves, because consumption moves with the weather and energy prices move on their own. We do not mark up energy, so when the plant runs more efficiently the difference lands on your line and not in our margin. Your council can ask to see the utility rate or the supplier invoice behind the energy line at any time.
What if we want out.
The agreement sets out how your building can end it early, the notice you must give, and what is payable : twelve months of notice, and a payment that covers the plant's remaining unpaid capital and the cost of removal. We would rather your council read that clause before signing than find it in year nine. Ask us to walk through it at the same meeting where we present the numbers.
Do we need a vote and what kind.
Which vote applies depends on how the agreement is structured and on your bylaws, and that is a question for your strata lawyer rather than for us. We are not asking your building to raise a special levy or to spend from the contingency reserve fund. Those are the things that usually require a three-quarter vote. We prepare everything your council needs for the notice package, and we attend the meeting.
Does this affect our depreciation report or insurance.
The plant becomes ours, so replacing it is not a cost your depreciation report has to fund. How your report should describe a plant owned by a third party is something we confirm in writing with your consultant. Boiler and machinery insurance on the plant is ours. We work with your broker on how the two policies sit together, and we make no representation about your premiums.
What if Commonworks disappears.
The plant stays in your building and the agreement survives. If it is assigned to another party its terms do not change: the same capacity charge, the same energy-at-cost billing, the same obligations. Ask us for the specific protections written into the agreement. Those include any consent or notice rights your building holds, and what our lenders can and cannot do. Put that answer in front of your lawyer.
Why is this different from the rental companies we have been warned about.
Those contracts have sometimes earned their money on the way out. The buyout price climbed every year. The renewal was automatic and nobody voted for it. In at least one province, a registration against title went in that the homeowner never understood. Our purchase price is set in the agreement before you vote and it does not climb. Renewal is a choice your council makes at end of term. Nothing is registered against any owner’s strata lot, and any registration we make to protect equipment we own is disclosed in the agreement and explained before the vote. We do not sell door to door.
Is this really cheaper than doing it ourselves.
Usually yes, over the life of the equipment, for most buildings, for three reasons. We own the plant, so we maintain it rather than defer service. You pay energy at our cost, so every efficiency gain lands on your line. And the building buys one plant over 25 years instead of two. We make no promise about savings, and if the comparison for your building runs the other way we tell you that in writing before any vote.
We have never had cooling, what does it take.
That is normal for a BC building of a certain age, and it is the most common reason a council calls us. The assessment answers that for your building. We check whether the risers can carry chilled water, whether the suites have fan coils or radiators, and what the electrical service can support. A fan coil is a small unit with a coil and a fan that can both heat and cool a room. Where the piping allows it, cooling comes with the same plant, in the same project, inside the same monthly fee. Where it does not, we tell you what it would take and what it would cost.
Who is responsible if the plant runs inefficiently.
We are. We own the equipment, so a poorly running plant is our repair bill and our replacement bill. Because we bill energy at our cost with no markup, we earn nothing when the building burns more energy. Our revenue is the capacity charge, which does not move. The tariff pays us to keep the plant at design efficiency and gives your building the benefit when we do.
Can we reach a person.
Yes. One number, answered at any hour, every day of the year, and it is printed in your agreement and on every statement. For anything a technician cannot settle, a principal of the company is reachable directly.
What do we get if we do the assessment and say no.
You keep the engineering report, the 25-year comparison for your building, and our recommendation. All of it is yours, in writing, at no cost. You can hand it to any contractor and use it to run your own project.
For co-op boards
A co-op does not raise a member assessment for this, because we pay for the plant. Housing charges stay predictable, and the monthly fee sits in the operating budget rather than in a capital plan. The board takes one agreement to its members and one agreement to its lender. If your co-op operates under an agreement with a public funder, that funder may need to consent before you sign, and we help you ask. Vote thresholds for a contract like this are set by your co-op’s own Rules, so check them rather than assuming.
For rental owners
For a rental building this adds cooling and new mechanical without a capital call. It holds operating cost steady through a fixed capacity charge. Heat and hot water complaints move off your manager’s desk and onto ours. The rest of this page is written for councils and boards, because that is most of our work. The arrangement for a rental building is the same one.
Council briefing
Print this section for your AGM package. Give a copy to each owner. Bring spares to the meeting. This section is written in your council’s own voice. Here “we” means your building. Commonworks is named in the third person.
Commonworks Energy: briefing for council and owners
What is being proposed
Our boiler plant is near the end of its service life. A boiler is the machine in the basement that heats water for our radiators and our taps. Replacing it as a capital project would cost a six-figure sum, paid through a special levy or through a strata loan repaid from strata fees.
Commonworks Energy is a British Columbia thermal energy utility. A thermal energy utility installs, owns and operates a building’s heating, cooling and hot water plant, and sells heat, cooling and hot water as a monthly service. Commonworks would replace our plant at its own cost, add cooling, and operate and maintain the plant under an Energy Services Agreement of 15 to 25 years. Commonworks operates as a thermal energy utility within the BC Utilities Commission’s thermal energy systems framework.
What it would cost us
We would pay a fixed monthly capacity charge, set for our building in the proposal, which does not change for the term. We would pay separately for the energy the building uses, metered and billed at Commonworks’ cost with no markup, estimated in the proposal at current rates.
There would be no special levy and no loan for the plant.
The comparison, in brief.
If we do it ourselves we pay the levy or the loan, an annual service contract, and emergency repairs at after-hours rates. We also pay rising energy cost as the plant loses efficiency, a second replacement in fifteen to twenty years, and council and manager time. We would not get cooling.
With Commonworks we pay: one fixed monthly capacity charge, and energy at their cost. Inside that charge: maintenance, monitoring, repairs and replacement; response at any hour; cooling; one statement.
Over the term, the estimate for our building if we do it ourselves and the estimate with Commonworks are set out side by side in the report Commonworks gave us. Every assumption behind those figures is printed in that report, and it is attached.
What changes for owners
Our suites get cooling as well as heating, where our piping allows it. The plant comes off our depreciation report and out of our contingency reserve planning, which leaves that fund for the roof, the envelope and the windows. There is no special levy to disclose on a Form B, the information certificate a seller gives a buyer, when an owner sells. Heat and hot water complaints go to Commonworks.
What protects us
Commonworks owns the equipment, so repairs and replacement are its cost. The price to buy the plant at end of term is written into the agreement now and does not climb each year. Renewal is our choice, not automatic. Nothing is registered against any owner’s strata lot, and any registration Commonworks makes to protect its own equipment is disclosed in the agreement and explained before we vote. Boiler and machinery insurance on the plant is theirs. If the agreement is ever assigned, its terms do not change.
The vote
Which type of vote applies depends on how the agreement is structured and on our bylaws, and our lawyer should advise us before the meeting. This proposal does not ask owners to approve a special levy or contingency reserve fund spending.
Questions to ask Commonworks before we vote
- What exactly is inside the capacity charge, and what is not.
- What are the written response times when we lose heat, hot water or cooling.
- What does it cost us to end the agreement early, and how much notice do we give.
- What is the purchase price at end of term, and how was it set.
- Will anything be registered against title or against a strata lot, and if so, what and why.
- What happens to us if Commonworks is sold or fails.
- Which of our suites will get cooling, and which will not.
- How long is the construction, and when will hot water be off.
- What did the assessment find that we did not expect.
Contact
Commonworks Energy. service@commonworks.ca. A representative attends our meeting and answers questions from the floor.
Request a no-cost building assessment.
Tell us about your building. We will reply and arrange a visit.
Email service@commonworks.ca