Regional Waste Systems is reconsidering expanding its Scarborough ashfill just one year after it resoundingly rejected the idea.

The reason for the expansion is simple, according to Jeff Messer, a member of the Finance Committee: The cost of operating the ashfill has significantly decreased now that RWS employees are staffing the landfill, which used to be run under a contract with L.R. Higgins, Inc.

Messer, who was one of the most vocal opponents to the expansion plan, said the operating and maintenance expenses that RWS paid over the years were “grossly inflated.” Once RWS took over operations at the ashfill using its own people the costs have significantly decreased.

Messer’s calculations, based on projections by RWS staff, indicate the company will save $784,000 in 2008 and over 17 years will save an average of $1 million per year, even including a 10 percent contingency reserve.

“That significantly changes the bottom line,” said Messer, who is also the chairman of the Scarborough Town Council.

Due to the high costs of operating and maintaining the ashfill in Scarborough, the RWS board decided to contract with Casella Waste Systems in 2004, which was projected to save some $7 million over the 10-year contract and $17 million over 20 years. RWS’s contract with Casella allows for an exit after two years.

“It was the right thing to do at the time,” Messer said.

Today with the reduced cost of operating the ashfill and the company finding itself on better financial footing, the time is right to move ahead with the expansion because it seems to be cheaper than the current arrangement, Messer said.

“It appears to be cheaper,” said RWS General Manager Kevin Roche. “However, we are allowing Casella to sharpen their pencils and provide RWS with lower costs for ash disposal.”

Casella Waste has not yet submitted its updated numbers to RWS for its fees. Roche expects the number will be available in time for RWS’s Aug. 18 meeting, when the board will consider the expansion.

If these numbers come in lower than thought, it may dissuade the board from moving forward with the proposal. But Messer does not think the company can better its $45 per ton it is now charging and the expansion will move forward.

“It allows us to control our own destiny,” Messer said about the expansion.

The expansion plan is essentially the same one that was discussed a year ago. It would include a double composite liner system to ensure environmental protection, Roche said. If one of the liners goes bad the second will be there to act as a backup, protecting the land.

“It’s a state of the art facility to really ensure the protection of the environment,” Roche said.

The ashfill is projected to last 38 years if all four phases are constructed. If three phases are constructed, the fill is projected to last for 30 years. The current ashfill’s capacity is projected to last between 18 months and two years.

Phase one construction is estimated to cost $6.45 million and is expected to take about 18 months to complete. None of the construction costs will be borrowed. Instead RWS will use the $4.4 million originally bonded for the project and $1.25 million in other bond money remaining from previous projects. The remaining portion of the money will come from a projected budget surplus of about $1.3 million.

Since Roche took over operations at the organization, things have been running very smoothly, Messer said. In addition to realizing a budget surplus, the organization has saved about $2 million by refinancing its debt.

RWS also renegotiated for more favorable rates on the electricity generated at its Portland waste-to-energy incinerator, increasing that revenue line by 50 percent, to about $5 million a year. Recycling revenue also has increased by $700,000, according to RWS numbers.