Portland, ME – Using Contracts to Save $1 Million

GBB Assisted in Selection of New C&D Recycling Facility Operator That Could Save City a Million Dollars a Year

Portland C&D RecyclingWith the long-term agreement that GBB helped the City negotiate with a new contractor for its C&D recycling facility, the City expects to save approximately $1 million per year, based on lower costs for operations and new revenues from more aggressive materials marketing.

The City of Portland, Maine, announced, in the summer 2005, the selection of Commercial Paving & Recycling Company LLC of Scarborough, Maine, to run its Riverside Recycling Facility, a regional facility processing approximately 60,000 tons of material per year from the City of Portland residents and from residents of neighboring municipalities. The longterm agreement is expected to generate a savings of approximately $1 million a year for the City based on a lower cost to operate the facility and new annual revenues generated by the aggressive marketing of the materials processed and recycled. In late 2004, GBB was selected, in partnership with the Maguire Group, Inc., to perform an independent review of operations and financial results at the Riverside Recycling Facility located on the northwest side of Portland. The primary objective of the assignment was to determine the advantages and disadvantages of the City’s methods of handling construction and demolition (C&D) debris, bulky waste and organics.

The GBB Project Team evaluated the pros and cons of the City’s contractual arrangement with the private firm now operating the facility, provided a detailed economic review, compared operations with established practices in the waste handling industry, and reviewed C&D waste handling strategies available to the City. The GBB Project Team ultimately recommended that a formal request for proposals (RFP) be issued in order to fully take advantage of the competitive marketplace. GBB was subsequently retained as part of the RFP development team and participated in the proposal review process.

“Jurisdictions that take a close look at the details of their operations and options can often generate important savings. The City of Portland had the foresight of questioning what they were doing and looking for expert opinions. They avoided simply going through the motions, and this decision will pay off for years to come,” noted GBB Co-Founder Bob Brickner.