City of Toronto to Consider Issuing “Courier/Delivery Vehicle Parking Permits”

Update: see previous posts – January 4, 2011 Toronto Takes Advantage of Rush Hour Gridlock By Tripling Parking Fine$, November 15, 2011 War on Car? Toronto Towing Fees Up 100% in March, 2012?, October 6, 2011 Toronto Towing is Down, Grinding Gridlock is Up, June 27, 2011 Expert Consultants Invited to Toronto to Come Up with Permanent Solutions for Grinding Gridlock, October 20, 2010 Toronto – Total Gridlock, March 30, 2010 Toronto Ranks 19 Out of 19 in Daily Commuting Times

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The Public Works and Infrastructure Committee (consisting of the following City Councillors – (Denzil Minnan-Wong (Chair), David Shiner (Vice Chair), Mark Grimes, Mike Layton, John Parker , Gord Perks )) held a public meeting on January 4, 2012, in accordance with the City of Toronto Act, 2006, and notice of the proposed amendments to the City of Toronto Municipal Code Chapter 441 was posted on the City’s website for a minimum of 5 days.

This delivery truck receives a parking ticket. The City is considering allowing courier/delivery to purchase delivery stickers to allow these vehicles to park on the street up to half an hour to conduct business with receiving parking tickets - the delivery sticker wouldn't allow these vehicles to park on the street during the morning/evening rush-hours.

This item was considered by Public Works and Infrastructure Committee on January 4, 2012. The Public Works and Infrastructure Committee has referred this item to an official or other body without making a decision. Consult the text of the decision for further information on the referral.

The City of Toronto’s Public Works and Infrastructure Committee  is considering issuing courier/delivery vehicles permits to allow companies to purchase these permits, to allow their vehicles park on the street for a maximum of thirty (30) minutes to conduct their delivery or pick-ups. The permit would not exempt these vehicles from $150 parking ticket fines, if these vehicles parked during Toronto rush hours (6 – 10 a.m. or 3 – 7 p.m.).

The Public Works and Infrastructure Committee referred Item PW11.3, together with the following motion by Councillor Perks, to the General Manager, Transportation Services, for a report to the Public Works and Infrastructure Committee at such time as the Downtown Transportation Study is considered, on the implementation of courier delivery zones City-wide and requiring that the use of those zones require a courier delivery sticker; and that couriers working within Toronto be surveyed for suggested locations:

The ability of courier and delivery vehicles to make deliveries in the central area of the City has become increasingly difficult due to competing curb lane demands, such as bicycle lanes, taxicab stands, passenger loading zones, tour bus operations, general parking, etc. As a result, courier and delivery vehicles often must stop or park for short periods of time in areas where parking is prohibited to make deliveries. This has resulted in an increased number of parking tickets being issued to courier and delivery vehicles, which has significant financial impact on their business operations. At the same time, vehicles on delivery can have a significant negative impact on traffic flow if parked at inappropriate times/locations.

To address some of these delivery issues, Transportation Services is requesting approval from City Council to initiate, further develop, and implement a permit parking system for courier and delivery vehicles. The intent is to blend the administration of the Courier/Delivery Vehicle Parking Permit Program with the Residential Permit Parking System.

The “Courier/Delivery Vehicle Parking Permit”, which will be issued at an annual fee and under an operational criteria as described in this report and in Appendix “A” attached to this report will exempt appropriately licensed, insured, and identified courier/delivery vehicles from specific “No Parking” regulations for a maximum period of 30-minutes while the driver is in the process of making a delivery or pick-up from a nearby business. This permit will not exempt vehicles from the morning and afternoon rush period stopping/parking provisions. It will apply on a City-wide basis and produce a source of revenue for the City.

What would be the costs for this permit?

A Courier/Delivery Vehicle Parking Permit at an annual cost, (fiscal year), subject to an automatic inflationary increase, plus applicable taxes, prorated quarterly of:

a.         $600.00 for an individual vehicle permit;

b.         $5000.00 for a maximum10-vehicle fleet permit;

c.         $500.00 per additional vehicle in excess of 10-ehicles under the fleet permit; and

d.         City Council authorize a fee of $28.00, subject to an automatic inflationary increase, plus applicable taxes, to replace a lost/stolen permit or re-issue a permit.

Financial Impact on the City of Toronto:

It is difficult to accurately estimate the net financial impact to the City resulting from the approval of the Courier/Delivery Vehicle Parking Permit under the operational model recommended by this report.  The sale of permits will provide revenue to the City of between $600.00 and $5000.00 per permit per year (subject to an annual inflationary increase), depending on the type and number of permits issued. No application fee for the permit is being recommended at this time. However, potential revenue from the sale of permits under this program will likely be offset by a decrease in annual parking ticket revenues, since it can be expected that the number of parking tickets issued to courier and delivery vehicles will decrease where these vehicle owners have purchased permits that provide exemptions from parking offences for which they are currently ticketed.

 

Table 1 below, illustrates the relationship between potential revenue from the sale of permits and potential revenue decreases resulting from decreased parking ticket issuance.

 

The following table outlines possible permit sales and the potential impact it may have on parking ticket issuance/revenues.

 

Table 1

Relationship between Revenue from the Sale of Permits and Decreased Parking Ticket Revenue

 

Number of Permits Sold($500.00 each)Gross Revenue from sale of permits*Decrease in number of parking tickets issued **Decrease in parking ticket revenue***Net Revenue from permit sales
0$00$0$0
500$250,0005,000$200,000$50,000
1000$500,00010,000$400,000$100,000

*Permits sold have been averaged at $500.00 each since it is believed there will be a greater number of fleet purchasers as opposed to individual permit buyers.

** Decrease in the number of parking tickets issued assumes that on average, each commercial vehicle receives approximately 10 tickets per year, based on parking ticket statistics from 2010 for commercial vehicles

*** Decrease in parking ticket revenue uses set fine amount for “No Parking” offences of $40.00.

 

Table 1 illustrates that while the permit program may have an impact on the number of parking tickets issued and the associated fine revenue, the sale of permits is expected to offset lost revenue from parking tickets, such that the permit program generates a net positive revenue stream.  Additionally, it is expected that there will be other savings and efficiencies attributable to a reduction in the number of parking ticket trials that need to be scheduled for parking ticket trials requested by courier/delivery vehicle owners.  As a result, staff will need to analyze and evaluate this program following one full year of program operation.

 

 

 

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