Regional Waste Systems Emerges from Independent Strategic Review with Blueprint for Future

Many recommendations of waste energy consulting firm already implemented, others underway

Regional Waste Systems has emerged from an independent strategic review of its operations and policies with a blueprint to guide the future of the non-profit solid waste management organization serving 27 southern Maine communities.

Many of the recommendations contained in the exhaustive, 222-page report already have been implemented, while others are either underway or will be addressed in coming months by the RWS Board of Directors.

Representatives of Camp, Dresser and McKee (CDM), the waste energy consulting firm retained by RWS to conduct the thorough analysis during 2004, made a formal presentation of its findings and recommendations to the Board in late January.

“The CDM report is an important document that will be used to chart the future course of RWS,” said RWS Board Chairman James Cloutier of Portland. “It’s heartening to note that after a lengthy and careful review process, CDM concluded that RWS is a well-run organization. But the report also identifies a number of areas in need of improvement. We’ve addressed some of those issues already and will continue to make necessary changes to strengthen RWS and ensure its long-term viability.”

The study was prompted by a number of external changes that occurred in recent years that increased RWS’ costs and reduced revenues. The sudden and dramatic rise in disposal costs in member communities shook the public’s confidence in RWS and led to the strategic review of its operations and functioning.

CDM identified a number of strengths of the organization, concluding that RWS “has provided efficient, reliable, cost effective service and capable staff” over nearly 30 years in operation. Also, the waste-to-energy facility is “well-managed and operated” and remains in good condition, the study found. CDM also concluded that staffing and salary levels where on par with comparable facilities in the region.

CDM uncovered weaknesses in a number of areas, including ash disposal costs, financing, board structure and policies, revenue streams and communications, that need attention to maintain the long-term viability of RWS, which operates a waste-to-energy facility, landfill and the state’s largest municipal recycling program.

Some of CDM recommendations that have either already been implemented or are in progress include:
¡ Cutting ash disposal costs. RWS terminated its contract with L.R. Higgins to operate the RWS ash landfill and is now contracting with Casella Waste Systems to transport at least 50 percent of RWS ash to a West Old Town landfill. The remainder will be disposed of in the RWS ashfill, now operated by RWS staff. The new plan will save as much as $700,000 a year.
¡ Hiring a new general manager to promote new thinking and management style. Kevin Roche, who has solid waste experience in both the public and private sector, came on board in September. He is implementing a number of changes to improve staff and Board effectiveness.
· Rethinking ashfill expansion plan. Board has “mothballed” DEP permit to expand RWS ash landfill, keeping options open until new disposal plan is assessed.
· Increasing capacity of waste-to-energy facility to generate revenues. RWS is successfully “prospecting” additional tonnage from a variety of sources.
¡ Removing ferrous metals from ash residue. RWS has cut disposal costs and created a new revenue stream by removing metals from the ash.
¡ Strengthen communications. RWS is working to improve communications between staff and board, among board members and with key stakeholders, including member communities, elected and appointed officials, the media and the general public. A revamped RWS website (www.regionalwaste.org) and a new e-newsletter are two examples of progress in this area, with more to come.

Recommendations that will be addressed in coming months include:
¡ Restructuring of Board of Directors. RWS is exploring ways to increase effectiveness of the Board and ensure fair representation among member communities.
¡ Updating procurement procedures for consultant and vendor contracts.
¡ Developing a strategy to deal with the issue of debt restructuring.
¡ Negotiating a flexible and fair new contract for the sale of electricity, which will expire in June.

Cloutier said he senses a more unified sense of purpose among Board members, who recognize the unique and vital function served by RWS and the importance of maintaining a regional approach to solid waste management.

“This report, in my opinion, has served to galvanize the Board and the staff in its resolve to restore the public trust and transform RWS into the important public entity that it always has been for the communities it serves,” he said. “Things are looking up at RWS, I can tell you that.”

Regional Waste Systems is a non-profit solid waste management corporation that is owned and operated by 21 cities and towns (Bridgton, Cape Elizabeth, Casco, Cumberland, Falmouth, Freeport, Gorham, Gray, Harrison, Hollis, Limington, Lyman, North Yarmouth, Ogunquit, Portland, Pownal, Scarborough, South Portland, Waterboro, Windham and Yarmouth), and also has six associate member towns (Baldwin, Hiram, Naples, Parsonsfield, Porter and Standish.)

RWS has the largest, most comprehensive municipal recycling program in the state, recycling more than 17,000 tons of recycled materials each year. Established in 1974 after Portland, South Portland, Cape Elizabeth and Scarborough decided to form a cooperative to handle their waste disposal, RWS today is governed by a 28-member board, consisting of officials appointed from member communities. RWS accepts solid waste and recycled materials from these communities. For more info, visit the RWS web site at www.regionalwaste.org.

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