Good morning. This is wednesday, november 20, 2019 meeting of the budget finance committee. I am chair fewer. I would like to make a motion to excuse supervisor. Four from this meeting paid if i can take that without objection madame clark, do you have any announcements for us today . Make sure to silence all cell phones. [inaudible] can you please call item number one. Item one, 191033. Ordinance amending the administrative code to create an office of emerging technology within the department of public works; amending the public works code to require a permit to obstruct the public rightofway within public works jurisdiction; amending the administrative code to codify the public works Directors Authority to take official actions, as defined herein, including adopting regulations for the pilot operation of emerging Technology Devices; amending the public works code and police code to provide for administrative, civil, and criminal penalties for unlawful obstruction of the public rightofway, including operation of emerging Technology Devices without a required permit; and affirming the planning departments determination under the California Environmental quality act. We have with us today president yee. I am actually excited to have this legislation to be heard in committee today. This is the culmination of nearly two years of work expanding over several pieces of legislation. The technology and trends are changing the way we work, communicate and live today. I will argue that we are in and industrial revolution. One which were the speed, scope and pervasiveness of technological advances are unprecedented. Industrial revolutions of the past came with many benefits. Including increased job opportunities. Increased production levels. Inspired innovation allowing for faster communication and reducing the influence. However, before regulations of these benefits that took place, there were a lot of unintended consequences that had profound negative impacts on the public including the use of child labor, unsafe working conditions, unregulated hours with no minimum pay and the list goes on. This was the past. This is because the pace and impact of technological changes is ever increasing while the speed of government is considering adopting regulatory legislation did not keep pace at the time. Today there are softwares and businesses and tech work philosophies that adopt to these environments. They allow the reassessment of plans because that is what is required in order to be successful. Our city can no longer function with blinders meant to protect justifications rather than cross functionality. Things like share rides such as uber and lyft are super examples of companies that remain unregulated and became powerful enough to refuse to cooperate with the city and now only do so when they are forced to. This is what has happened in San Francisco. Today with the office of emerging technology the unintended negative consequences stop. Early in 2018 when they tried to ban delivery robots it was seen as anti tech or solving for something that was not a problem. A few weeks later after my attempt to regulate the robots, there were hundreds of scooters out there that were dumped on our sidewalks. And suddenly everyone understood what i was talking about. This city and our residents demanded action in order to control what was taking place on our streets. City and states are fighting and working to pass legislation requiring companies to identify their workforce as employees in order to be compensated. Data breaches are common with role companies pirating personal information for financial gains. In hong kong we were seeing Technology Surveillance used against protesters and in China Technology based social Credit Systems are being rolled out by be roared or punishing people according to their scores. Surveillance is being used to track individuals and some places protests in ways that were unimaginable just a few years ago. To address this by being reactive and legislating after the technology our devices already launched is not Good Governance nor sustainable. To address this, we need to be as innovative in our policies as emerging tech is in adapting and launching products. San francisco will be the first in the nation, i believe may be the first in the world that will create a Regulatory Framework i will establish an office of emerging technology. It will allow the city, and the public to effectively evaluate emerging technologies before it operates in our Public Infrastructure or our public space. I support innovation and technology. But, our residents are not guinea pigs and our Public Infrastructure are not a freeforall for unregulated spaces. San francisco welcomes and encourages emerging technologies and the office will ensure that the technologies provide common good measure and identifiable ways and that they are safe and appropriate. Emerging technologies are new and potentially useful. They work better or have unique applications when they do not arrive without a need for accommodation. Many emerging technologies impact the public. They utilize our Public Infrastructure or write a wave. Our airspace or our data. I want to be clear that the objective is not to control these technologies but to balance the Public Service of innovation with the public good and safety. This is why i am proud we had a robust, thorough and collaborative process through my emergency technology. City administrative kelly will present more details. It is worth noting over 200 people and organizations participated including small startups, well established tech firms, advocates, labor and merchant and neighborhood associations. Multiple departments and academics. The recommendations from the report then formed this legislation for the office of emerging technology was born from that effort. The office of emerging technology is uncharted territory that we now have a realistic framework and i am confident in the process that has brought us here. As a reminder of most examples of emerging technologies today our mobility focus. The office will be inclusive beyond mobility tech to anywhere there is a nexus between an unregulated technology and Public Infrastructure and public space. Whether this is hover boards on the water facing public collection. Biometrics on the public rightofway. Anywhere there would be an impact to resources. The office of emerging technology is charged to analyze potential impact. For the first time emerging tech will have a clear streamlined process for approval. It is imperative that departments move away from working in silos and collaborate with the office of emerging technology. The office of emerging technology will be the front door in the Central Point of contact because it is our responsibility as a city to evaluate benefits costs and risks to our residents safety. Their privacy impacts seniors, children and label. Before a new technology is allowed and be launched in public. The Office Creates a streamlined process supporting innovation by facilitating approvals from all departments that are impacted by emerging technology. Not currently regulated. The office will also be charged with forecasting variation so that our city can be proactive with what may be coming down the pipeline. I will just stop at that. I want to say sometimes when we look at regulations. One of the things i found in the past is that we create regulations then lo and behold, whos going to enforce these regulations. It could be our Police Department it could be our department of public works and yet we are paying a city for enforcing these regulations and something seems to be wrong when new technology is costing the city more. I think that needs to be part of the analysis to analyze what the cost of the permits should be. For the committee, you know, i would like to have city administrator, kelly, share more details and background. I want to recognize the director of the committee of Informational Technology and also who oversaw the emerging Technology Workgroup is here as well. They are here to answer any questions if you have them. Good morning. Naomi kelly, city administrator. Thank you for having me today to talk about the office of emerging technology. As you heard, this process got kick started in earnest on aprif supervisors passed a resolution asking the City Administrators Office to convene a working group to focus on San Franciscos response and emerging technologies. The resolution enacted 12 principles for regulation emerging technologies. You can see these principles on the slide here. The creation of the open working group was instrumental in order to engage the many players in the space. As you heard president yi talk about the tech companies. And government agencies. The working group also informs recommendations on our regulatory and permitting processes. It provides a foundation of framework on how it could also become, how are permitting and regulations process could be nimble and also protecting our infrastructure in residence. Also the working group resulted in final recommendations to myself, the board of supervisors and the mayor. The working group had a five official meetings. Let me tell you that doesnt really capture how much work went into this process. There were 478 rsvps to these different meetings. 200 active participants and when i say not just official meetings, there are many subcommittee meetings. With many Different Community groups and from labor industry, the disability industry. The tech, pedestrian advocacy groups. Representatives from the private sector, local government and nonprofits. They focused on the following areas. Collaborate and partnership, to have agile permitting unaccountability. To have Community Engagement and city priorities. To have equitable benefits. You accessibility and safety to have, and i dont have the others, thank you. Accessibility and safety, and forecasting. What is going to happen in the future so we are not caught left footed. At the end of the process the working Group Published a final report from the emerging Technology Open working group. With five final recommendations to ultimately help the process of drafting the office of emerging technology ordinance. The first thing that everyone recommended was created front door to provide a Central Point of contact. The second thing was to improve communications with the community by informing Technology Companies of best practices to engage local residents and businesses. Third was to do safety tests and evaluations of new technologies with clear evaluation criteria. Fourth was the support of responsive policy development in areas such as equity, sociability, privacy and data ethics. And finally, foster smart forecasting through expert collaboration. At the end we decided to have the front door, to be the office of emerging technology, be in the department of public works. It was for good reasons. I would say three very important reasons, because we can hit the ground running. The department of public works and their project Management Department already has an existing permitting system. We are not creating the ball from scratch. They already collaborate with many of the different city agencies and the different permitting agencies. They have regular collaborations. To his example of the robot, that robot wasnt just in the streets but it was on the sidewalks. It was delivering medicine, or food. You need a permit from public health. You need a permit from public works. And you need to make sure that you are not blocking access to those that are disabled or those who walk slower. They already have the existing collaboration with the multiple city departments and also public works has existing relationships with community advocates, and community nonprofits. They are not creating these lists from scratch. Before i invite deborah up to talk about public works and how they plan to roll out the office i just want to say thank you to matthias from hoyt to take the bull by the horns and facilitating the working group, deborah from public works use and mapping. Good morning. I want to say thank you to city administrators,. What do we mean by emerging technologies . How do we define it . Emerging Technology Means one or more physical objects that are mobile or stationary that constitute or incorporate new electronics, mobile technologies, applications of technology which are proposed to use a pond, above or below City Property within the public rightofway. This includes beta tests, or pre products, software, failing to have written analysis meant to be met by any regulatory body of the united states, the state of california or the city. [reading notes] generally this is something that is in the testing phase. It is not consumable at market and does not have a permitting structure or process in existence. A question we spent a lot of time discussing and working through his what fits into the emerging technology . This discussion led us to anything that does not have a defining permanent structure. This allows for a testing environment and with consideration for equity accessibility, privacy, sustainable use of data among all of the other city requirements that need to be considered throughout a process like this. What does the process look like . This graphic is a representative of the permitting and engagement process. It all begins with an idea. An idea for a new or repurposed meant of a technology with ability to impact the public rightofway. The ideas brought to the front door so potential applicants can engage with the city early. During the application process the office would facilitate and support the applicant answering questions, providing guidance and setting expectations. During the application review and analysis timeframe the office would facilitate engagement with all impacted city departments which may vary depending on the technology. Would coordinate the interagency discussions regarding a, referral organizations to ensure the applicant was working to procure any associated or necessary permits and ensure all of the agencies were integrated. The office would also ensure Public Engagement and lead those efforts. If there is support for a Technology Proposal than the office would issue a notice to proceed for a limited duration pilot. At the end of each pilot the o. E. T. Would issue a report evaluating the technology during the pilot. And give recommendations. [reading notes] the office will provide an annual report to the board of supervisors. That concludes our presentation. I am available if theres any questions. Could we have the bla report, please . Good morning. This legislation actually approves the establishment of the office of emerging technology in the Public Works Department the permitting requirement it sets the permit amount, and the applicable penalty for fines if the permit is not followed. And then it gives the director of public works the right to set the rules for the pilot operation of emerging technologies. The board of supervisors appropriated 250,000 for this office. Public works would use it to offset the cost of existing staff positions in the department. We would consider approval to be a positive recommendation from the board of supervisors. Lets open this up for public comment. Any members of the public like to comment on item number one . Good morning supervisors. I am with a San Francisco. I am very happy to say that walk San Francisco was a participant in the working group that supervisor he put together. Not only was our participation important for our organization as a pedestrian advocacy organization, but also because we lead the Vision Zero Coalition and particularly the senior and Disability Working Group of the Vision Zero Coalition. This look at how our emerging Technology Impacts our sidewalks is very important to us. I believe one of the most important outcomes of the office of the emerging technology is alerting the public in groups like walk San Francisco about an application process. Because we do want to be able to work with these companies its really good for us to have a notice that these applications have been submitted. Its really important. I think what we really did learn is a lesson with the sidewalk robots. I just want to voice my support and our support as an organization that we would love to see this go through and hope this group passes this office of emerging technology. Thank you. Thank you very much. Good morning. Cami blackstone from at t. I do appreciate all the work that has gone into this legislation. I want to reiterate that it is my understanding that this ordinance refers to new technologies that dont already have a Regulatory Framework and permitting process in place either at the local, state or federal level. Just for the record i want to confirm that although telecom 5g network to have a robust review process so would probably not be subject to this additional review. Thank you. Thank you very much. Next speaker, please. Good morning. Rudy gonzalez with the San Francisco labor council. It has been great to see the process unfold. I really appreciate and our unions appreciate the equity lends that board president yee brings to, and all