'It's not good': Waste collection is the latest factor in Hamilton's money problems

The cost of waste collection in Hamilton is about to increase by 15 per cent, which some councillors say is a anothersign that the city is headed for serious money trouble if the provincial and federal governments don't step in to help.

The city is already facing a $22.8 million deficit from COVID-19 if pandemic measures don't end by May 31, which now seems unlikely. Now the city only has two bidders for some of its waste collection contracts, and the lowest is a $3million increase over the last contract.

Only two companies bid for the seven-year contract. The lowest bidder, GFL Environmental Inc., already does waste and recycling collection around many areas of Hamilton, and recycling collection in the lower city. Instead of costing $19.629 million per year like the contact set to expire in March 2021, the new bid is for$22.628 million a year.

GFL'sbid comes weeks after the city learned it would have to pay 17per centmore for insurance over 2019 because of instability in the insurance market. The deductible has also doubled.

"It's not good," said Coun. Lloyd Ferguson (Ward 12, Ancaster) of the mounting costs. And "this is just the beginning."

He also cited Uber pulling out of a one-year contract for Hamilton's bike share program with nine months left in the agreement, prompting discussions about whether the city should pay about $700,000 moreper year to run the service itself. The city, he said, is also in the midst of a judicial review over a report about pavement friction on the Red Hill Valley Parkwaythat could cost as much as $11 million.

Ferguson said he wants to look at what it would cost for the city's public workers to collect waste and recycling across the whole city. Right now, city workers do garbage collection in Hamilton's lower city.

"I'm going to push back hard on this," he said.

The city can't legally run a deficit. That means with the growing cost crunch overall, Ferguson said, "we've got to turn to the senior levels of governmentwho have the reserves and have the ability to do deficit financing."

John-Paul Danko (Ward 8, west Mountain) agrees that it just keeps getting grimmer, especially without usual revenues like bus fares and recreation program user fees to offset it. The city has stopped collecting both because ofCOVID-19.

"Our financial situation for the City of Hamilton as we move through this crisisjust keeps getting worse and worse," he said.

Danko wanted to look at the cost of collecting garbage every two weeks, which city staff said would have been cheaper. Council rejected that 5-4. Danko said it would have at least given the city two numbers to choose from.

"As it stands now, we're stuck with an extra $21 million to taxpayers becausecouncil refused to look at the option of biweekly landfill."

Emterra Environmental bid on the contract too. Emterra's bid was even higher $36,588,858 per year, which would be an 86 per cent increase.

Hamilton isn't alone in shouldering an increase. The cost of waste collection in Niagara is increasing 36 per cent, and that's with biweekly collection.

London is paying 20 per cent more for waste collection than before, and Peterborough 15 per cent, says a staff report. Vaughan, meanwhile, saw a 10 per cent decrease.