A Policy towardsCharging for Space

A. Petrilli, May 23, 2012

Introduction

How to allocate and de-allocate space Cooperative Central fiat Space rental

Cooperative - current

A representative body is needed (GTPE) Allocation is fine De-allocation is the problem

No incentive to de-allocate Much effort and discussions Unpredictable timing/results Possibility of deadlock Too many widely different activities,

difficult/impossible to prioritize

Central fiat

A deciding person is named, the fiat Then same as Cooperative Deadlock solved by the fiat

Space rental

Create a market for space Allows Departments to release space and to re-

acquire it later on under known conditions Once rental is unavailable, space will be requested for

construction Limit new constructions to a minimum

A GTPE-like committee might still be needed, but it would not be concerned any more with space searches and negotiations Either enough space is available in the rental

market or new buildings are required

Space rental

The goal is not:• to increase expenses for any department• to redistribute budgets• to create a “space currency”

Assign a rental value per m2 in CHF based on current, existing, average ordinary

maintenance costs e.g. the GS budget for building maintenance

on current, existing, average running costs e.g. heating and electricity(?) costs

Space rental - 2

Use rental charges as a help to motivate Department and groups to critically look at their space usage Releasing space involves a large human effort

which must be compensated in some way The compensation can be used to help rationalize

space usage The rental scheme should be structured to create a

negative feedback which helps to stabilize space requests include space in the normal budget requests cycle

Space rental – Year Y

On year Y, startup

1. Extract the by Dept, by Group usage of space, e.g.:

2. The budget for building Maintenance and Operation for Y+1 is approved

3. The “rental” cost per m2 is calculated

4. The rental cost is distributed to each CERN group in Y+1 on top of their normal budget

Department Group Building m2

PH CMD 40 127

PH CMD 32 13

PH … … …

Space rental – Year Y+1

On year Y+1

1. Extract the by Dept, by Group usage of space, e.g.:

2. Each CERN group is charged based on their Y+1 space occupation

3. The budget for building Maintenance and Operation for Y+2 is approved

4. The “rental” cost per m2 is calculated

5. The rental cost is distributed to each CERN group in Y+2 on top of their normal budget

Department Group Building m2

PH CMD 40 120

PH CMD 32 12

PH … … …

Space rental – Year Y+2

On year Y+2

1. Repeat Y+1

Working details

The time gap between the first and the last step must be as large as possible During this time interval Departments can release

space and therefore pay less than the rental allocation they will receive

Suggested calendar1. January 5, year X, data extraction

2. January 15, year X, recharging

3. June, year X, Finance Committee

4. July 1, year X, rental cost calculated using input from 1. and 3.

5. January 1, year X+1, budget distributed

6. January 5, year X+1, …

(Devil is in the) Working details - 1

When the recharging from the Dept/Groups to GS (step 2.) there are two options:

a. Recharge at the CHF/m2 calculated the year before (step 4.)

b. Recalculate the rental cost based on this year budget and the latest space allocation known (data extraction in step 1 and then recharge)

In case a. GS might receive a smaller budget than approved

In case b. GS receives the budget requested

(Devil is in the) Working details - 2

When space is released today with , GS is the ultimate owner

With space rental, space should be released to a special no-owner Department (it will be therefore excluded from the step 1. calculation until reassigned)

When space is released, the rental cost CHF/m2 will increase the year after! This is normal as GS will still have to maintain the

released space

(Devil is in the) Working details - 3

To request more space, the rental cost of the needed space will have to be integrated in the normal budget request

When space moves from no-owner to a Department, the rental cost will decrease

A request to rent non available space triggers a request for refurbishing existing buildings or building new buildings An initial budget is already in the MTP at this point

(albeit likely insufficient for a new building) At a later stage one could imagine different prices

between different areas (e.g. Meyrin site vs. Prevessin)

Special cases to be considered

Collaborations MS vs. NMS Institutes Space granted in MoU

Differential prices? Assembly halls Storage space Workshops Labs

These cases do not prevent a rapid implementation of space rental

Costs involved initially

Informatics support, data is existing Automated extraction of data for step 1. Simple web interface for Departments and groups

to check at any moment their status Automated generation of space budget allocation

to Departments/groups Automated generation of recharging

AoB