February Smart Cities and the Waterloo Region Opportunity

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1 February 2018 Smart Cities and the Waterloo Region Opportunity

2 Introduction The concept of smart cities continues to evolve as technology increases its presence in our dayto-day lives. For a region or city that means its citizens are more connected than ever before by mobile devices and applications. It also means new technologies are available to communities to interact with citizens, manage future growth, and address challenges that affect the wellbeing of communities. A smart city can be defined as a city that uses technology and data to enhance the livability and opportunities for its citizens. Depending on the perspective of this definition, a smart city can be viewed as a community where technology is the main source of delivering cost-effective and timely services to its citizens. Another view of smart cities could be community partners coming together to leverage technology to drive innovation and change in improving the quality of life for all facets of the community. Ideally, aspects from both of those perspectives would apply to any smart city initiative, but whichever perspective is taken, it is important to plan a smart community based on the needs and wants of citizens. Governments at different levels across the world are embracing smart city technologies to become more competitive, responsive to citizens, and make operations and services more efficient. Data and information collected using more traditional methods have been historically used by cities to do future planning based on past data (e.g. traffic counts, number of clients using frontline services). However, with the continued evolution of data analytics, new information that can often be presented in real-time is allowing cities to plan with a more citizenfocused and future-focused lens. It also means being able to design and manage a city that can better support improving the overall livability and quality of life. Smart city technologies can apply to a number of different community initiatives or services. The more traditional smart city technologies often apply to more obvious projects like infrastructure, transit, and energy usage; however, smart city technologies can be applied to everything from public health to supporting a community s most vulnerable citizens. Using data and technology to support these solutions will allow cities to better measure their overall well-being and quality of life. By better understanding strengths and weakness, cities can respond to problem areas by targeting resources accordingly. This type of benchmarking will create further benefits for communities like Waterloo Region when attracting new investment and talent. This realization is driving more and more cities to adopt smart city technologies. One study conducted in 2017 estimated the smart city market will surpass $770B by Waterloo Region is Canada s 10 th largest community with a population of approximately 583,000 people. By 2031, the Provincial Growth Plan projects the population to grow to approximately 742,000 making Waterloo Region one of the fastest growing regions in Ontario. That population is spread across the Region s three cities (Cambridge, Kitchener, and Waterloo) and four Townships (Woolwich, Wellesley, Wilmot, and North Dumfries), which also means a future smart Waterloo Region strategy must be inclusive of both urban and rural needs. 1 BCC Research. Smart Cities: Growing New IT Markets

3 As one of Canada s leading technology regions and innovative communities, the development and implementation of a smart Waterloo Region strategy is a natural fit. The Region is also known as a community that collaborates, something that will be essential to embracing a forward vision on a smart Waterloo Region. With world-class post-secondary and research institutions, an innovative not-for-profit and social entrepreneur sector, and a base of small to large sized companies already focused on the Internet of Things (IoT) and smart applications, Waterloo Region has a number of assets it can leverage in creating a smart Waterloo Region strategy. Smart Technology Solution Examples from Waterloo Region Smart city technologies are not new in Waterloo Region. A number of examples of smart city technologies have been implemented throughout Waterloo Region over the years. Some of these examples include: Waterloo Region Education and Public Network (WREPNet) In 1998, the Waterloo Region District School Board and Waterloo Catholic District School Board, received funding from the Ontario Government to develop a high-speed self-managed fibre network linking all schools under the jurisdictions of the boards. In 1999, eight other public sector organizations in Waterloo Region joined the venture under the name WREPNet. Today, that network allows approximately 327 individual sites at schools, municipal government offices, and public libraries to connect to a high-speed, secure internet network that gives Waterloo Region a competitive advantage in a growing knowing-based economy. Pingstreet The Region of Waterloo and cities of Cambridge, Kitchener and Waterloo have launched Pingstreet mobile platform that can be downloaded to a mobile device. The app provides residents with information ranging from community events to garbage and recycling information to school and bus alerts. Honk Mobile The City of Waterloo, has introduced an app where downtown visitors can purchase more time for their parking space avoiding having to return to their vehicle to add more money. The app is not only more convenient for visitors, but business are also pleased to have shoppers spend more time in their stores. The City expects to generate up to an additional $20K per year. LED Streetlights In 2016, the Region of Waterloo and area municipalities adopted LED lighting for every streetlight throughout the Region. The street lights not only use less energy, but they are also expected to save the Region and area municipalities about $500K per year. Smart Traffic Solutions The Region of Waterloo partnered with Miovision, a local company to implement Spectrum, a smart traffic solution along regional roads. Using Spectrum, regional traffic staff now receive immediate alerts when issues arise and do traffic counts on demand. 2

4 Well-Water Monitoring The Region of Waterloo launched a pilot project with another local start-up, eleven-x, to use low power sensors to monitor the Region s water supply production and monitoring wells in real time. Data logging devices track well-water levels and temperature hourly and alert staff if levels fall outside of normal parameters. Civic Innovation Lab In 2017, the City of Kitchener launched a Civic Innovation Lab at Communitech as part of its Digital Kitchener Strategy. The lab will define problems that could range from monitoring water usage to putting monitors on waste management and develop solutions to address these problems. Fibre To ensure Waterloo Region has the actual physical infrastructure to ensure citizens have access to the internet and each other, the Region of Waterloo and the seven municipalities supported the SouthWestern Integrated Fibre Technology (SWIFT) Network in This initiative will work to build an ultra-high-speed fibre optic network available to everyone at affordable rates. SWIFT received $180M from the Governments of Canada and Ontario to support the construction of the network. Similarly, the City of Kitchener launched an Internet Speed Testing pilot that encouraged residents and businesses to test the speed of their connections to identify areas with inadequate broadband infrastructure. Municipal Data In 2016, the World Council on City Data recognized the City of Cambridge with ISO Platinum certification. The ISO certification (for sustainable development of communities) includes the collection of nearly 100 indicators - core and supporting - organized by 17 categories. Further, the ISO framework allows communities to compare themselves to other communities around the world based on the standardization and authentication of all data provided. To date, 50 cities have been certified globally, with several others currently in the process. Public Engagement All of the municipalities in Waterloo Region have also adopted an online platform to seek input and feedback from citizens. Moving away from solely just inperson meetings and written submissions, citizens can now comment on major projects, developments, and plans from their personal computer or mobile device. Waterloo Region is also fortunate to be home to companies in the smart technology field allowing the Waterloo Region to maximize local talent and solutions. By embracing a collaborative approach to smart cities where the general public, private sector, academics, notfor-profits, and municipal governments come together to maximize our existing knowledge and resources, Waterloo Region can develop a leading edge strategy for its community. Some of the work to determine where smart city solutions could be applied is already underway. The Region of Waterloo has been leading the development of Wellbeing Waterloo Region, an initiative that has brought organizations together from all segments of the community to develop a shared vision of community wellbeing. Using a framework based on the Canadian Index of Waterloo and based on information, data, and stakeholder consultations, Wellbeing Waterloo Region is developing indicators that can help this community identify areas for improvement. 3

5 Smart Cities Initiatives in other Jurisdictions There is a global push to use smart city technologies to address municipal challenges. In 2015, the United States Department of Transportation launched its Smart Cities Challenge for midsized cities across the country. 78 cities applied to the program with new ideas to solve challenges using smart city technologies. The City of Columbus, Ohio won the challenge by using a number of smart technology solutions including connected infrastructure, connected vehicles, common payment systems, an integrated data platform, and autonomous vehicles. Another one of the finalists in the Department of Transportation s Smart Cities Challenge was the City of Austin, Texas. Being the most economically segregated communities in the country, Austin s proposal utilized smart city technologies to overcome mobility, equity and opportunity challenges that have worsened over the years. With a growing tech sector and increasing housing costs, much of the local workforce was unable to compete for new jobs and ended up moving to places inaccessible by public transit and employment centres. In the Netherlands, Amsterdam Smart City was launched as an innovation platform for the Amsterdam Metropolitan Area. This public-private partnership is continuously challenging residents, academic institutions, businesses, and the municipality to test smart city solutions to address urban issues. Amsterdam Smart City places citizen needs at the centre of its vision and creates tailored solutions based on specific needs of the community. The goal behind this is to shift the smart city paradigm from municipality to community, from top-down to bottom-up, and from assumption to information-driven 2. In Vienna, Austria, a similar approach to Amsterdam is being taken with the establishment of a public-private organization, which is tasked with developing smart city solutions. The organization is focusing on reaching ambitious goals like obtaining 50% of their energy from renewables by 2030 and tripling the number of electric vehicle charging stations. Vienna has also embraced smart city initiatives through the community planning process by implementing new zoning initiatives for dense neighbourhoods that allow for zero parking in residential buildings. Here in Ontario, the City of Toronto is currently in the process of developing their smart city plan. Like Waterloo Region, the City has already implemented smart city technologies across a wide range of municipal services and infrastructure. In 2012, the City of Toronto introduced the City Services Benefits card to replace paper cheques for those collecting Ontario Works. Based on data collected, one out of every four recipients did not have a bank account preventing a direct deposit option. In addition to saving $2.5 million from eliminating the cost of issuing cheques, the new system doesn t identify recipients helping to eliminate stigma and increase social cohesion 3. In 2015, the Province of Ontario adopted a similar system for recipients of Ontario Disability Support Payments (ODSP) generating an anticipated savings of over $3 million when launched in Amsterdam Smart City.com Smart Cities 2017 Report, Toronto Board of Trade

6 The Smart Cities Challenge The opportunity to develop a smart Waterloo Region strategy could be partially supported by the Government of Canada s new Smart Cities Challenge (the Challenge). The program, launched in November 2017, allows municipalities across Canada to compete for funding to support the implementation of their smart city solutions. The Challenge encourages communities to think big and be ambitious with the application of smart city solutions. As part of the application, communities will have to develop a Challenge Statement, a single sentence that defines what it would like to achieve by implementing its smart solution. The Challenge Statement must be measurable, ambitious, and achievable through the proposed use of data and connected technology. The program will have three rounds of funding over 11 years and will award a first place prize of $50 million, two prizes of $10 million for mid-sized communities, one prize of $5 million for a smaller size community, and a prize for indigenous communities. Given the size of its population, Waterloo Region falls within the $50 million category. Each round of funding will have a two-phase application process. While a municipality is expected to lead the application, a requirement of the program is to collaborate with the general public, private sector, and other community organizations to respond to the Challenge. The first phase of the application is due at the end of April 2018 and focuses on identifying the community challenge area. Five applicants from each prize category will be selected by a panel of experts to proceed to the second phase, which will include the development of a full business plan that outlines what smart solution(s) will be used to solve the community challenge. The second phase application will be due in late 2018/early 2019 with the winning communities in each phase announced in the spring of The winning communities must implement their smart solutions and demonstrate improvement in the challenge area measured by the data collected through the ongoing monitoring of the project. Technology and Open Data Every day, citizens are generating data through the use of their connected devices. This has pushed cities to look at how they interact with their citizens in the digital age. Many cities now have e-consultation platforms that allow citizens to provide feedback to municipal governments or software applications for mobile devices that provide the opportunity to respond to inquiries. Cities are also using various smart technologies like sensors and geographic information system technologies to manage infrastructure and operations more efficiently. The continued growth in the Internet of Things, cloud computing, low bandwidth and low-cost sensors that can track everything from pedestrian movement to available parking spaces, have made the adoption of smart solutions easier to justify. The increased use of technology by citizens and government means there is more data being collected than ever before. This data presents an incredible opportunity for municipalities if harnessed correctly. This data tells a story about the overall well-being of a community and can be used to make strategic decisions to increase the overall quality of life for citizens. Many 5

7 governments at different levels, including municipalities in Waterloo Region, have begun to make their data available to the public on open data platforms. Open data and the creation of open data frameworks is a core element of the Smart City Challenge. Data that is accessible to all, usable, and barrier-free supports transparent, decisionmaking processes empowering citizens and strengthening the relationship between residents and public organizations 4. A smart solution(s) for Waterloo Region must be founded on this concept to effectively overcome the community challenge that is selected. A user agreement is in place to ensure appropriate use of the data by other parties. Waterloo Region is also home to Canada s Open Data Exchange, an organization that promotes open data amongst municipalities and the effective exchange of data between those that have data and businesses that require it. The Open Data Exchange is a national initiative to strengthen Canada s technology brand and accelerate commercialization 5. The increased collection of data often raises the concern of privacy. Most of the data collected is usually stripped of any personal information, however, ensuring databases are secure is an essential part of the discussion with citizens. Most municipalities have policies and frameworks around the use of data and the level of data collected. With the development of a smart Waterloo Region strategy and throughout the implementation of any initiatives, data management and privacy must be a key consideration. Community Driven The approach to smart cities has evolved with the continued understanding of its benefits. In early smart city days, projects were driven by private sector companies looking to implement their technologies within city operations. Shortly after that, smart city initiatives shifted from the private sector to the public sector as communities took notice of the operational efficiencies smart city technologies could offer and the impact it could have on shaping communities. Today, the citizen-driven smart city is taking shape in cities across the world. This model relies on extensive dialogue with citizens from different segments of the community and users of municipal services. Having a deep understanding of what the desires of the community are allows cities and their partners to develop a smart city solution that is responsive and tailored to the needs of that community. Effective governance of smart city strategies is critical to their success in being responsive to a community. Smart city strategy development and implementation involves multiple community partners working together in sync. The private sector, academia, not-for-profits, and government all have their role to play in developing a smart, livable community for Waterloo Region citizens. All of these partners will have different expectations and unique ideas on what makes a modern smart city. 4 Smart Cities Challenge, Government of Canada Codx.ca, Canada s Open Data Exchange

8 Funding Smart City Initiatives While the Government of Canada s Smart Cities Challenge may be able to support the development and implementation of a smart Waterloo Region strategy, additional funding will be required to move forward. Funding smart cities can be done in a few different ways. In addition to funding from Federal and Provincial levels of government, municipalities can look to different models such as public-private partnerships or reviewing existing investments or future capital plans to incorporate smart city technologies where available. For example, existing plans to upgrade infrastructure with future expenditures could be revisited to optimize smart city solutions that could result in long-term savings in maintenance or extend the lifespan of infrastructure. An important consideration in the smart cities planning process is the value of inkind support from the private sector, not-for-profits, academics, and others. With a shared vision for enhancing the quality of life in a community, every partner stands to benefit from a smart city and successfully developing a smart city. In-kind contributions can include research, piloting new technologies, the commitment of human resources, and sharing of data, all of which are important components of a smart city. Application Governance To coordinate the first phase application to the Smart Cities Challenge and establish a shared vision for a smart Waterloo Region, a Steering Committee made up of the Chief Administrative Officers from the Region of Waterloo and area municipalities has been established to guide the community engagement process and analyze the information received from the public. An Advisory Committee with members from different community organizations has also been established to provide input on this process. Community engagement, analysis of community input, and development of the application will be supported by staff from the Region of Waterloo and area municipalities. The final application will be presented to Councils from the Region of Waterloo and area municipalities in April 2018 for approval and endorsement. The Waterloo Region Opportunity The time is now for Waterloo Region to look at how smart cities solutions can shape our community in the coming years and make us an even better place to live, work, and visit. With a solid base of smart city projects to build upon, a technology sector with homegrown smart city solutions, and a citizen-first approach to collaboration, Waterloo Region has all of the right components to adopt a forward-thinking approach to adopting a smart city strategy. Throughout February 2018, the Region of Waterloo and area municipalities will be reaching out to the general public, not-for-profit organizations, educational institutions and the private sector to have a dialogue about how community challenges could benefit from smart solutions. Through public consultation centres, online engagement, social media, and stakeholder roundtables, the Region of Waterloo and area municipalities will identify the community challenge to base an application around. This engagement will build on the community consultation already completed through other initiatives such as Wellbeing Waterloo Region, community surveys, and strategic plans. In March 2018, the community input will be analyzed, 7

9 and a phase one application will be developed for the Smart Cities Challenge. Once finalized and approved by municipal Councils, the final application will be posted online. For more information on the development of a smart Waterloo Region strategy, please contact the Region of Waterloo s Office of Regional Economic Development at ecdev@regionofwaterloo.ca. 8

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