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En Munich, 23.11.2018 SUBJECT: Future CA/99/18 Orig.: en Munich, 23.11.2018 SUBJECT: Future EPO building projects – Orientation paper SUBMITTED BY: President of the European Patent Office ADDRESSEES: Administrative Council (for opinion) SUMMARY This document describes the status of the EPO premises and the related building activities to be further elaborated on in the coming months for a more detailed proposal to the Administrative Council in June 2019. By then the different possible scenarios and their pros and cons will have been evaluated for further decision-making, and initial time schedules and cost estimates for the preferred scenarios will be presented. CA/99/18 e 2018-5337 - I - TABLE OF CONTENTS Subject Page I. STRATEGIC/OPERATIONAL 1 II. RECOMMENDATION 1 III. MAJORITY NEEDED 1 IV. CONTEXT 1 V. ARGUMENTS 3 A. MUNICH 3 B. THE HAGUE 6 C. BERLIN 8 D. VIENNA 8 VI. FINANCIAL IMPLICATIONS 10 VII. DOCUMENTS CITED 10 VIII. RECOMMENDATION FOR PUBLICATION 10 CA/99/18 e 2018-5337 I. STRATEGIC/OPERATIONAL 1. Strategic II. RECOMMENDATION 2. The Council is requested to give an opinion on this orientation paper. III. MAJORITY NEEDED 3. N.A. IV. CONTEXT 4. The President presented the overall strategy for building management and a status review of the EPO premises in his last activities report (CA/88/18). It is stated there that the EPO's building strategy is to deliver a modern working environment along with efficient and effective space management and to preserve the value of the EPO's assets. The Office's main goals for its buildings and the layout of workplaces are: Transparent, flexible and modern workplaces to foster collaboration Similar working conditions for all EPO staff at all sites Working conditions that improve staff well-being Maintenance to preserve asset value Increased sustainability and, in particular, reduction in carbon dioxide footprint Compliance with changing legal requirements to continuously ensure safety and security. 5. As the newest building, New Main best reflects the policy of providing a state-of- the-art working environment. As for the EPO's other buildings, it should be noted that they deviate to different degrees from current requirements for a modern working environment. Moving through these buildings with their closed doors, one has the impression that they are almost empty as there is no visual connection to the working area. Communication is not really fostered by this architecture either. CA/99/18 e 1/10 2018-5337 6. Moreover, the current level of wear of the older buildings requires major investments, in some cases owing to legal requirements, such as fire safety and protection against asbestos. The EPO annually assesses the different elements of its buildings using epiqr, a process for a standardised assessment of buildings developed in the 1990s by several research institutes, including the Fraunhofer Institute for Building Physics, with funding from the European Union. Each building is composed of approx. 500 elements which are categorised according to their importance from low (e.g. landscaping) to high (e.g. security-related installations) and then in one of four categories ranging from A (as good as new) to D (in critical condition). 7. The assessment of all elements results in a figure representing the level of wear, expressed as a percentage of an ideal state. To preserve the value of the EPO's assets this percentage should not permanently fall under a level of 70%. Should the percentage reach or even fall under this level, maintenance and renovation activities will have to be performed. 8. The following graphic gives an overview of the buildings and the level of wear: Age Gross Level Fire Energy Harmful Space Transparent Sum floor of safety substances working area wear environment 2 2 Years m % kWh/a m Office Yes/no m2 / WP MUC Isar 38 91 346 73 184 23 No/possible P1-6 28 165 235 77 79 21 No/possible P7 13 44 686 85 87 22 No/possible P8 11 66 259 87 66 19 No/possible Haar rented partially TH New 0 87 276 new – 15 yes Main Hinge 17 44 598 79 159 – n/a Shell 35 79 109 76 187 19 No/possible Others Berlin rented No/not possible Vienna 46 11 420 77 111 22 No/ possible Brussel rented CA/99/18 e 2/10 2018-5337 9. All investments in the buildings at the different sites will increase the value of the property and thus contribute to an increase in the EPO's capital assets. The table below presents the valuation of the different buildings owned by the EPO by its insurance companies according to the state-of-the-art standards: Location Building value Mio € Munich, total 779 462 Isar 213 877 BT 1-6 361 579 BT 7 91 803 BT 8 112.203 The Hague, total 455 105 Hinge – EPO I 66 662 Shell – EPO III 137 303 Garage 18 140 New Main 233 000 Vienna (part-ownership) 18 791 EPO total: 1 253 358 10. Finally, the estimation of the future needs will have to take into consideration the increasing share of staff members in teleworking (almost 2000 employees in October 2018). V. ARGUMENTS A. MUNICH 11. The EPO has property at two locations in Munich. The first building, the Isar building, was inaugurated in 1980; following rapid growth of the Office and the resulting need for more space a second location was then established with the purchase of the first buildings (BT 1 to 6) of the PschorrHöfe in the late 1980s. This second location was further extended to include BT 7 to 8. In the older buildings (Isar and PschorrHöfe BT 1 to 6), age-related investments are necessary to ensure the continued proper and safe functioning of the buildings. In addition to this and following current practice in the office building sector, investments in a modern and transparent working environment in the office area and in reducing the energy consumption are being considered (all buildings). CA/99/18 e 3/10 2018-5337 12. The Isar building, designed by renowned architects Gerkan, Marg und Partner (gmp), Hamburg, represents the highest technical standard for office buildings in the late 1970s. The approximately 900 workplaces are situated in two interconnected ten-storey high-rise buildings, complete with a generous conference area on the first floor and social areas in the basement. 13. During the period 2008-2011, the Office needed to conduct some works, mainly for the removal of asbestos, the reconstruction of internal building elements (ceilings, floors, lighting) made necessary by the asbestos removal work, and the replacement of technical installations, particularly in the ventilation and power supply systems and, to a lesser extent, the effluent, conveyance and central control systems. In 2016-2017, some measures to enhance the level of security of the buildings were implemented. In 2017-2018, the five elevators dating from the end of the 70s needed to be replaced. 14. The building itself did not go into any deep renovation exercise. Its current level of wear is 73%, reflecting the fact that, in addition to insulation of the flat roof constructions on the top and first floors (incl. gardens), several technical installations have still to be replaced. The energy consumption is far above average, mainly driven by the air conditioning of the entire building, an outdated facade with limited insulation and no sun protection on the outer side, as is standard nowadays. The working environment is characterised mainly by single offices (about 23 m2) and non-transparent separation walls between the offices and has not been changed since the inauguration of the building. 15. PschorrHöfe BT 1 to 6 were designed by architect Professor Ackermann, Munich, and handed over phase by phase, starting in 1990 and ending with BT 6 in 1999. Based on the latest technical developments at the time, cooling ceilings instead of air conditioning were for the first time installed as standard in most offices to optimise the energy consumption. There have been no major investments since the inauguration of the buildings. 16. The level of wear is 77% and, after almost 30 years of use, parts of the construction and the installations, e.g. fresh water infrastructure, structural beams in the garage and the elevators, need to be replaced or renovated. An up-to-date fire safety concept is being worked on and will trigger investments in construction and technical installations. The work environment is characterised by single (21 m2) and double offices with non-transparent separation walls. CA/99/18 e 4/10 2018-5337 17. The design of the first BT (1-6) was kept for BT 7 to ensure design continuity throughout all building parts and underline that BT 7 belonged with the existing buildings. BT 7 was built from 2003 to 2005 and is characterised by a huge entrance hall, offering the possibility of exhibitions and staff meetings. The level of wear is 85%, reflecting the building's short life so far. The energy consumption is comparable with other buildings of this standard and age but could be optimised by minor investments such as LED lighting. The working environment with an average space per workplace of 22 m2 is comparable to that in the other phases. 18. BT 8, the newest building in the PschorrHöfe complex, was constructed from 2005 to 2007. It is characterised by an individual design differing from that of BT 1 to 7 and houses, among other things, a large sports hall for the activities of the Amicale clubs and a third canteen at this location. The workspaces are single offices (19 m2). The level of wear is 87% as the building has been in use for only 11 years.
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