RWS Board of Directors February Meeting Summary: Major Structural Changes Approved

The Board of Directors at Regional Waste Systems on Thursday overwhelmingly approved major structural changes that will streamline decision making and improve efficiency of the non-profit solid waste management organization owned by 21 southern Maine communities.

The restructuring plan approved by near unanimous votes at Thursday’s Board meeting involved three key changes, effective July 1:

§ The full Board of Directors will include at least one representative from each member community, and will meet quarterly instead of monthly to vote on major issues.
§ The Executive Committee will be reduced from 14 to nine members and include “district” representatives to ensure all communities are represented. The committee will meet monthly to more closely oversee RWS activities.
§ The Board also endorsed the elimination of a “sunset” clause in the RWS Interlocal Agreement that would have terminated RWS in 2014, allowing the continuation of RWS beyond that date. That plan must now be agreed to by individual communities in the coming months.

Each of the steps taken by the Board on Thursday had been recommended by an outside consultant that conducted a strategic review of RWS last year. By improving efficiencies, RWS is expected to save money that will in turn help lower costs to member communities into the future.

Also Thursday, in another key vote, the Board gave the go ahead for RWS staff to begin to provide a revenue share for some recyclable materials, creating a potentially lucrative new revenue stream to help offset costs to member communities.

The RWS Recycling Center is presently under utilized due to strong market conditions that are prompting some haulers to seek a competitive price for their recycled materials, including cardboard and paper. RWS will now be able to offer a financial incentive to attract additional tonnage, which it can process and sell to create more revenue.

By aggressively procuring recyclables, RWS will:
§ Increase revenues to help offset assessments
§ Operate at full capacity
§ Operate more like a business
§ Provide a financial incentive to use the facility rather than perceived flow control
§ Expand RWS’ regional approach to solid waste disposal

RWS General Manager Kevin Roche told the Board the goal is to increase capacity by 25 percent, which will take advantage of economies of scale. RWS currently processes 16,000 tons of recycled material a year.

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