Hamilton's transit authority can operate the city's future light-rail transit (LRT) system, Metrolinx says — but adds that it's not a very good idea.

Metrolinx "strongly recommends" against HSR running LRT, it said in a letter to the city Friday. And a city staff report shows it will delay the project, and cost the city nearly $1 million right away.

HSR operating LRT will make the project more complex, and could cost the city more in liability and operating costs, said Metrolinx president Phil Verster in a Nov. 24 letter to city manager Chris Murray.

Metrolinx would also have to issue a new request for qualifications, Verster said. That could also delay the project by up to five months.

The city would also have to immediately spend money. It would need as many as three rail experts to work on tender documents, says a staff report that city councillors will debate on Friday.

It would also need five people to "ensure that the interests of the city as operator were protected." The latter would cost at least $750,000 per year.

But it can happen. Toronto and Ottawa LRTs have a design-build-finance-maintain models, as opposed to the planned Hamilton one, which is one company designing, building, financing, operating and maintaining LRT through a public-private partnership. In either scenario, Metrolinx will own the system.

Metrolinx would still own it

"Metrolinx is prepared to remove operations from the current procurement and work with the city on the basis that HSR will take on both the commercial and operational obligations under contract, with Metrolinx remaining as the project owner," Vester wrote.

The quest to have HSR run LRT started in August, when Metrolinx was already partway through finding companies to build and run the system.

The Amalgamated Transit Union (ATU) Local 107 launched a "Keep Transit Public" campaign, saying if a third party operates LRT, the public will lose control.

Ultimately, all but two councillors voted in favour of asking, with those opposed worried it would delay the project. Local provincial NDP reps also supported HSR operating LRT.

The request has gotten more air time recently. New city numbers show a high rate of absenteeism among HSR drivers — mostly because of short-and long-term disability — and hundreds of missed routes every month.

If the city does run its own LRT, it would have to show Metrolinx its plans no later than March 2020, and sign a formal agreement by Jan. 24, 2018.

What HSR would do

HSR's responsibilities would include the following:

Operating the light rail vehicles (LRVs) and rights of way along the route.

All mechanical and safety aspects of the LRVs.

Recruiting, selecting, training, certifying, supervising and scheduling the drivers, and other operations staff.

Enforcing the fares.

Customer service.

Monitoring passenger assistance intercoms and security cameras.

Providing Metrolinx with a plan to show it can do these tasks.

Until the city responds, Verster wrote, Metrolinx will keep working on the LRT project as if HSR will not operate the LRT.