City staff urging Mayor Tory to abandon private garbage collection

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Toronto city staff are urging Mayor John Tory to abandon one of his campaign pledges: privatizing garbage collection in the east end.

In a report released on Wednesday, city staff say the current system – private garbage collection in the area west of Yonge Street and public collection to the east – is the most economical approach.

In his campaign to become mayor, Mr. Tory vowed repeatedly to contract out garbage in the east end.

According to staff, keeping garbage collection public in the east end is the best option because it "provides a competitive environment."

City council, spurred by former mayor Rob Ford, voted in 2011 to contract out the west-end garbage collection, and staff estimated that the move saved the city $11.5-million a year.

But that same move, staff say in Wednesday's report, has also led to "productivity improvements for in-house collection" in the east end – including lower wages and reduced sick-time costs. From 2013 – the year after the west-end privatization was implemented – to 2014, the cost of collecting garbage in the east end dropped by about $1.9-million.

"Provided that these gains are sustained and improved," the report goes on to say, "the best value and lowest risk to the city of Toronto at this time is to continue with the current model."

The mayor's office was unclear, when asked, what, if any, effect the report will have on Mr. Tory's promise to do away with in-house garbage collection.

"The mayor remains committed to providing Toronto residents the best service at the lowest cost," his spokeswoman, Amanda Galbraith, said in a statement.

"There are a number of unanswered questions in the report, including private-sector bid costs, which have been assumed and are not tested, and the impact, if any, new collective bargaining agreements could have on the city's cost figures."

Last year, the city spent $30.1-million for private garbage collection in the west end. In the same year, the city spent about $36-million for in-house garbage collection in the east end – partly because of factors that make collection in the area between Yonge Street and Scarborough more expensive, including row houses, narrow streets and on-street parking.

By using the current pricing for garbage collection in the west end, the city projected what private collection would cost in Scarborough from 2017 to 2023. According to those estimates, privatizing would cost $22-million more than in-house collection.

The report is set to be debated at next week's public works and infrastructure committee meeting, but if the committee's chair, Councillor Jaye Robinson, has her way, it will not make its way onto the city council agenda any time soon.

Ms. Robinson said in an interview that she has concerns, and would like to see it deferred. "I'm really surprised by it, and kind of disappointed," she said of the report.

She questioned city staff's methodology in basing cost projections on current costs in the west end.

She also said, given that city staff are about to begin the collective bargaining process for a new contract – which could significantly affect costs, council should wait for that process to be completed before making a decision.

Ms. Robinson also dismissed the argument about competition enhancing productivity, saying there is already built-in competition because of the two separate private contractors in the west end. "We've already got that in place," she said.