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CITY OF MONMOUTH - ENVIRONMENTAL MANAGEMENT CORPORATION
(EMC) PUBLIC-PRIVATE PARTNERSHIP
2000 NCPPP Project Award Winner
Project Location: Monmouth, Illinois
Public Sector Partner: City of Monmouth
Contact Name: Alderman Robin Johnson, 309.298.3319
Private Sector Partner: Environmental Management Corporation
Contact Name: Andy Jackson, 309.734.4026
PROJECT SUMMARY
The Monmouth-EMC public-private partnership meets
the criteria established by NCPPP for qualification as a 2000 award recipient
in the following ways:
Originality
Monmouth is the largest city in Illinois, and one of the largest in the
United States, to enter into a long-term public-private partnership for
all public works services with a single provider. The support of the local
AFSCME union, measured in a vote shortly before final council action,
is not only rare but also shows the commitment made by city and EMC officials
to involve employees in the process and soften any potential negative
impacts. A presentation made by city and EMC officials, at the annual
Illinois Municipal League conference in September 1999. In Chicago attracted
more city officials than any other session and revealed the level of interest
in the originality of the partnership. Finally, at least one city in Illinois
has emulated the Monmouth-EMC partnership and several others have inquired
and are actively considering such an agreement.
Quality
Service quality is enhanced under the terms of the agreement with performance
guarantees assured by EMC and fines for nonperformance. EMC upgraded the
city's computer system and assisted the city with a solution to the Y2K
issue. The firm implemented a switch to monthly billing of water and sewer
users that increased efficiency and helped the city's cash flow. EMC conducts
a regular program of preventive maintenance and helped develop a long-term
capital replacement program for the city.
Implementation
EMC and Monmouth officials conducted a smooth and seamless transition
of services from public to private management. It resulted in part from
a good working relationship dating to 1993 when the city originally contracted
with EMC for wastewater services. Another important aspect of the implementation
was the city's retention of the previous public works director who stayed
with the city for a year and a half to oversee the transition. He then
was hired by EMC to take over day-to-day management of public works, thus
assuring continuity and stability of services. The positive relations
between the city and EMC and smooth implementation of the partnership
agreement was evidenced by further partnering opportunities. EMC was selected
by the city for DBO contracts to place a synthetic cover over a local
lagoon and for a multi-million dollar sewer separation project. Trust
is an essential element of any public-private partnership and EMC and
Monmouth officials have worked hard to maintain and enhance that trust.
Economics
Because of the city's severe financial problems, significant cost savings
were crucial to the success of the partnership. First year cost saving
were projected at approximately $260,000 and will lead to annual savings
of about $325,000 when the number of employees is reduced to the optimal
level through attrition. In other words, the firm agreed to provide public
works services for $1.3 million compared to the city's prior cost of approximately
$1.6 million.
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