Item - 2024.IE14.5

The Infrastructure and Environment Committee recommends that:

1. City Council approve the concept of On-Street Logistics Mini-Hubs as a permanent program, so that courier organizations / companies can apply to access an On-Street Logistics Mini-Hub where locations are deemed suitable by the General Manager, Transportation Services. 

2. Should City Council approve Recommendation 1 of the report (May 13, 2024) from the General Manager, Transportation Services, City Council approve the On-Street Logistics Mini-Hub pilot location located on the west side of St. George Street between a point 88.7 metres north of Russell Street and a point 27.5 metres further north (in the vicinity of 60 St. George Street) for five (5) parking spaces, as a permitted installation to be operated by Purolator Incorporated and approve the amendment of City of Toronto Municipal Code Chapter 950, Traffic and Parking, Schedule XLVII: On-street Logistics Mini-hub Parking Areas to include this location.

3. City Council approve the amendments to City of Toronto Municipal Code Chapter 950, Traffic and Parking, to allow the permitting of On-Street Logistics Mini-Hub areas, generally as outlined in Attachment 1 to the report (May 13, 2024) from the General Manager, Transportation Services.

4. City Council amend City of Toronto Municipal Code Chapter 441, Fees and Charges, Schedule 2 (Transportation Services) by creating and adding a new fee to "Appendix C" for the On-Street Logistics Mini-Hub non-refundable permit of $6,401.80 (plus Harmonized Sales Tax) per year, per parking space displaced, and adjusted yearly for inflation. 

5. City Council amend City of Toronto Municipal Code Chapter 441, Fees and Charges, Schedule 2 (Transportation Services) by creating and adding a new fee to "Appendix C" for the On-Street Logistics Mini-Hub non-refundable application fee of $218.20 (plus Harmonized Sales Tax) per Mini-Hub area requested, and adjusted yearly for inflation.

6. City Council establish new offences and establish new associated penalties and amend City of Toronto Municipal Code Chapter 610, Penalties, Administration of, generally as outlined in Attachment 2 to the report (May 13, 2024) from the General Manager, Transportation Services.

7. City Council authorize the City Solicitor to introduce the necessary Bills to give effect to City Council's decision and City Council authorize the City Solicitor to make any necessary clarifications, refinements, minor modifications, technical amendments, or By-law amendments as may be identified by the City Solicitor, in consultation with the General Manager, Transportation Services in order to give effect to Recommendations 2 to 6, inclusive, above.

On June 15 and 16, 2022, City Council approved a pilot project of up to eighteen (18) months for Toronto's first On-Street Logistics Mini-Hub, to further support and investigate last-mile deliveries in combination with electric cargo bike operations.

The Mini-Hub, which is a repurposed shipping container, was located within a parking layby on St. George Street within the University of Toronto's downtown campus. The multifunctional structure has been operated by Purolator Incorporated courier company and has served as a redistribution center for the pick-up and drop-off of packages by customers and a storage location for the company's large cargo e-bike delivery fleet.

Following the completion of the Mini-Hub's pilot period, which ended in April of this year, Transportation Services is reporting back to City Council to provide information about the outcome of the trial and recommend next steps. Given the findings from the pilot, which are detailed in this report, Transportation Services is seeking City Council's approval to allow the creation of an On-Street Logistics Mini-Hub program that can be rolled out in other areas of the city with other courier companies where locations are deemed suitable and to approve the continued operation of the Mini-Hub on St. George Street. In addition, the report also seeks Council's approval to establish an On-Street Logistics Mini-Hub permit fee ($6,401.80 per year, per parking space displaced) and an application fee for an On-Street Logistics Mini-Hub ($218.20 per request) that would be charged to courier companies wanting to participate in the program, including administrative penalty amounts for unauthorized vehicles parking, stopping and standing in the Mini-Hub area and courier companies do not properly display the permit issued for the Mini-Hub.