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HomeMy WebLinkAboutFCS-17-006 - Digital Kitchener - Civic Innovation Lab REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: February 13, 2017 SUBMITTED BY: Dan Murray, Director of Technology Innovation and Services, 519-741-2200 x7825 PREPARED BY: Dan Murray, Director of Technology Innovation and Services, 519-741-2200 x7825 Justin Watkins, Interim Manager, Business Relations and Solutions Delivery, 519-741-2200 x7203 WARD(S) INVOLVED: All DATE OF REPORT: February 2, 2017 REPORT NO.: FCS-17-006 SUBJECT: Digital Kitchener – Civic Innovation Lab ___________________________________________________________________________ RECOMMENDATION: THAT staff be directed to establish a civic innovation lab at Communitech for a three year pilot term, as outlined in staff report FCS-17-006; and further THAT the Mayor and Clerk be authorized to execute an agreement with Communitech for the civic innovation lab (Lean Lab), subject to the City’s continued funding for Communitech expansion and to the satisfaction of the City Solicitor. BACKGROUND: On January 9, 2017, Council approved Digital Kitchener – the city’s first ever digital strategy. The strategy was developed through extensive outreach both internally and throughout the community. Establishing a civic innovation lab for Internet of Things (IoT) and other “smart city” solutions was identified as a key initiative for 2017 that will directly support a number of the actions identified in Digital Kitchener, and position the City to deliver extraordinary results early in the strategy’s mandate. Council has approved an ongoing annual investment in Communitech which will be leveraged to establish the civic innovation lab. This opportunity will position the City to benefit from an economic development standpoint and will also leverage the Communitech innovation “ecosystem” to help the City solve its own municipal challenges. By working alongside City staff, start-up and scale-up companies will help develop and refine products that solve municipal challenges. These solutions can then *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 4 - 1 be marketed to other municipalities or private industries, further strengthening Kitchener’s economy. REPORT: Purpose of a Civic Innovation Lab City staff are recommending Council approve establishing a civic innovation lab for a pilot period of three years in the heart of the community’s technology incubator, Communitech. The lab will work on “smart city” focused projects of the City’s choosing to solve civic challenges, either where a) entirely new solutions need to be envisioned that are outside the expertise of city staff, or b) where staff cannot commit time to address the challenge because of the day-to-day demands of maintaining core services. The lab will work closely with city staff to define the problem clearly, brainstorm ideas, prototype and pilot solutions to validate and prove the approach. This allows the city to lower risk by confirming solutions before it commits to the procurement or implementation of a full-scale solution. The lab will also be unencumbered with the day- to-day operational demands of the municipality and will be able to focus solely on these new activities allowing the chosen projects to move swiftly forward. The model also provides an opportunity for city staff to be exposed to new ideas which can then be brought back into the organization. What Will a Civic Innovation Lab Look Like? In simple terms, a civic innovation lab will be a dedicated physical space (approximately 350 square feet) within the Communitech Hub. It will be co-located with other similar spaces established by start-ups, scale-ups, large corporations and institutions that have similar interests in collaborating to develop innovative technologies which have commercial potential. It will be led by a lab director who has responsibility for overseeing the lab, leading projects, liaising with city staff and potential partners, etc. The lab director will be supported by a small team of co-op students (typically one or two per term) and city staff who will be seconded to the lab on a temporary basis depending on the specific projects underway. The city will set the project priorities and monitor the progress of the lab to deliver against those priorities. Potential Projects There are many examples of potential “smart city” projects that can be undertaken by the lab, including: 1. Improving the services and amenities provided to our citizens: a. Leveraging smart water metering to proactively notify our customers of excessive water usage (i.e. leaky toilet or water softener) 4 - 2 b. Providing real-time water and natural gas consumption information for residents so they can understand their usage patterns and implement household conservation efforts c. Monitoring live traffic conditions to help route and direct emergency responder vehicles d. Reducing driving time and vehicle emissions by allowing motorists to locate available parking options with smart parking applications e. Using vehicle and pedestrian sensors to control the level of streetlight illumination improving safety and reducing electrical use f. Sensing waste receptacle levels to ensure they are emptied before they overfill 2. Solving specific municipal challenges: a. Lowering the cost of meter reading for both water and gas consumption b. Identifying areas of water leakage in the municipal water system by monitoring flows, pressure and meter usage (i.e., use predictive analytics to determine water main breaks) c. Monitoring storm water levels during rain storms to proactively respond to possible flooding or blocked drains d. Monitoring sound pressure levels across the city to assist in validating bylaw complaints (i.e. music, airplanes, fireworks) There are numerous other examples not even yet contemplated. A process for identifying and prioritizing municipal challenges for the lab to address will be developed before the lab is operational. Corporate Leadership Team (CLT) will provide the ongoing operational governance for the lab’s project work plan ensuring that the right projects are being chosen based on overall benefit and work area readiness. Staff will report back to Council on lab projects and priorities through Digital Kitchener strategy updates. Alignment with Digital Kitchener The civic innovation lab is a key initiative of Digital Kitchener and directly supports its priorities. Specifically, a civic innovation lab aligns with Digital Kitchener the following ways: Connected: the Connected theme contains a core action of leveraging the growing field of IoT to develop smart city capabilities to enhance the lives of citizens. With council approval in 2016 for implementation of the narrowband IoT network, as well as a $300,000 commitment to facilitate pilot projects related to IoT/smart city initiatives, the City is well positioned to lead in the adoption of IoT solutions. A civic innovation lab will allow the City to pilot solutions and prove the value in this emerging technology before investing in full scale implementations. 4 - 3 Innovative: the Innovative theme advocates for the City to engage Kitchener’s talented community of innovators to assist in finding solutions to local civic challenges. Establishing a lab at Communitech will create a forum for the City to present municipal service challenges to eager innovators looking to develop cutting-edge, “made in Kitchener” solutions. The lab will also facilitate flexible solution development that will support local start-ups. On Demand: as IoT and smart city technologies continue to evolve, the data collected will become an important asset to be used for future solutions and supporting decision making. Making IoT data available through the City’s open data program will provide new insights into how the systems are operating and how they can be improved. Communitech’s Role Communitech will host the civic innovation lab and provide tailored support to help the city set up and operate the lab, drawing on its expertise with other organizations under the enterprise innovation program. Communitech will assign a dedicated account manager that will work with the lab director to identify any opportunities to help the city expand its reach to achieve success on our defined objectives. From recruiting the right team and designing the right programs, Communitech will tailor an approach to help the city articulate its innovation challenges and build customized activities to solve them. Exposure at Communitech will also provide an outlet for the city to showcase its innovation activities through regular tours and events. The Communitech Hub sees over 15,000 visitors each year. This will provide a great venue to tell the Kitchener story which was another theme heard throughout consultations for Digital Kitchener. Potential Funding, Partnerships and Sponsorships Upon Council approving the establishment of the civic innovation lab, city staff will begin to investigate and apply for any possible funding available from other levels of government that supports public sector innovation. There is significant interest in promoting innovation at both provincial and federal levels of government and staff believe the city may be able to access additional funds to scale up the lab. Accessing any possible funding sources from other levels of government for co-op students will also be explored. Staff also anticipate interest from other municipalities in joining certain projects that the civic innovation lab undertakes. The lab will take on challenges that are likely to face many municipalities and the solutions will ultimately be shared. A cost sharing model will be established for these projects which will lower the ongoing costs to the city. There is also a potential of corporate sponsorship opportunities emerging. Any such opportunities will be assessed to ensure that the core objectives of the civic innovation lab will not be negatively impacted by private corporate interests. 4 - 4 Progress Updates The civic innovation lab is being initially proposed as a three year pilot project. Staff will formally report back on the lab outcomes throughout the pilot project as part of the Digital Kitchener updates to Council as well as informally through lab visits and updates. Success will be measured against the following key performance indicators: Number of innovative IoT projects identified / year Number of pilot projects completed / year Projected cost savings/efficiency/corporate value on a per project basis Number of engagements that put municipal challenges before the tech community / year Number of projects moved from pilot to proposed solution / year ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Strategic Priority: Effective and Efficient City Services Strategy: 5.2 - Improve the design and delivery of city services so that they provide what citizens want in the most reliable, convenient and cost efficient way Strategic Action: #68 - Corporate Technology Strategic Plan and Digital Strategy FINANCIAL IMPLICATIONS: Funding for the civic innovation lab has been allocated as follows, with no additional funding being requested at this time: 1. Civic Innovation Lab Space / Communitech Program Support Communitech has offered that, as part of the annual financial support of $300,000 from the City for its capital expansion, it will provide up to 350 sq. ft. LeanLab space within the expanded corporate innovation space at no additional cost to the City. This offer includes full access to the programs and staff support that Communitech provides to their enterprise innovation lab clients. 2. Funding for Pilot Projects Seed funding to allow pilot projects to proceed will be required. The ability to purchase needed software and hardware components to complete pilot projects will be critical to keeping the lab moving forward on solving municipal challenges. The intention is not to fund the entire city-wide implementation of projects but to validate the proposed solution and develop business cases for the project based on the findings of the pilots. 4 - 5 The $300,000 IoT/smart city fund established as part of the LED streetlight conversion project will be used to fund the lab’s IoT/smart city pilot projects. This aligns perfectly with Council’s approved intention for this fund. 3. Staffing of the Civic Innovation Lab The minimum required resourcing for a successful innovation lab is as follows: 1 Lab Director – funded through the 2017-2019 contribution to Digital Kitchener in the Economic Development Reserve Fund 1-2 Co-op students per term – funded through the IoT/smart city fund and/or operating areas based on the specific projects selected. City staff – various short-term, temporary staff secondments will occur throughout the initial three year term of the Lab – funded through operating areas based on the specific projects selected COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. CONSULT – The public at large has been offered the opportunity to provide input and share ideas on the Digital Kitchener project through various engagement opportunities as described in this report. COLLABORATE – Many stakeholder groups such as Kitchener Public Library, the Mayor’s Forum participants and the City’s advisory committees have collaborated to develop innovative ideas for Digital Kitchener. ACKNOWLEDGED BY: Dan Chapman, DCAO Finance and Corporate Services 4 - 6