Public-Private Partnership In Monmouth
Addresses Major Wastewater Treatment Issues

By BILL DOWELL and MICHAEL McKEE

Wastewater treatment problems are common. Monmouth, Illinois, officials faced theirs, however, as part of a unique multi-faceted public-private partnership which addressed issues head on and stubbornly worked to clear environmental and governmental hurdles.

At the heart of this partnership are the City of Monmouth, Environmental Management Corporation (EMC), Mariah Packing, Inc., the Illinois Environmental Protection Agency (IEPA) and the Illinois Department of Commerce and Community Affairs (DCCA).

The group's goal was improved discharge from Monmouth's North Wastewater Treatment Plant. Strengthening this was the city's need to retain Mariah as a major employer. Mayor Patrick McManus explains the project would have "gotten nowhere... if everyone was trying to push responsibilities off to the other parties."

"Everybody sat down and decided there's a big task in front of us," says John Stadler, president of Mariah.

Eliminating the problems continued to be the driving incentive during months of discussions and negotiations, agrees Jerry King, president of EMC. EMC is a St. Louis, MO wastewater management firm selected by the Monmouth City Council in August 1991 to improve treatment plant operations and the final discharge.

Throughout those talks, EMC offered single-source responsibility to ensure treatment plant changes and a consistent, high-quality discharge. The company's experience ultimately brought about workable and affordable solutions.

A simple history led to the need for this public-private joint effort.

• Monmouth built the North Plant in the mid 1960s to treat wastewater from the hog processing plant, then owned by a Mariah Packing predecessor. With about 6,000 hogs processed daily at the plant, the waste stream is eight to ten times stronger in contaminants than domestic wastewater. Although these wastes are not toxic, they create an enormous demand for and can deplete oxygen which is also needed by organisms in the receiving stream.

• IEPA maintained since the early 1970s that the North Plant's discharge did not meet agency standards. IEPA required the city to meet those standards and was prepared to file suit through the Illinois Attorney General's office to ensure compliance.

• Monmouth did not have the money needed to make changes which would improve the discharge.

• Mariah Packing, Inc. bought the plant in late 1989. The company started to implement some changes within the packing plant in order to help the wastewater treatment plant meet IEPA's effluent standards.

McManus, Stadler and King agree that the North Plant was not mismanaged. The problems were significant, however. Hydrogen sulfide gas created odor problems for nearby families and caused extensive corrosion on most exposed metal surfaces at the treatment plant. Quality of the plant discharge was an ongoing concern. When previous packing companies abandoned operations, the revenue they had promised was not available to meet needs at the treatment plant.

McManus explains that the city originally considered working with private companies to design, build and finance the facility's upgrade — with the emphasis on financing. EMC, however, convinced the city and Mariah that the real benefit of bringing in a private firm was the transfer from the city to EMC of the liability associated with meeting discharge requirements.

Instead of focusing just on funding, EMC proposed a package in which the firm would design and build the upgrade, then operate the plant. The firm guaranteed to meet IEPA discharge requirements during the six-year life of the contract.

With the approval of the city and Mariah, EMC began talks with IEPA long before the company was selected over two other management firms. "We have to know what the regulatory agency is willing to ac-

August 1992 / Illinois Municipal Review / Page 9

cept," EMC's King explains. "They want to be involved in the process and really appreciate being brought in early on the discussions." Bob Goeltz, EMC's project manager, brought his experience and a working knowledge of the agency's requirements to help EMC represent the industry and the city effectively with IEPA.

EMC combined its professional background with that of Springfield consulting engineers Crawford, Murphy & Tilly, Inc. The consulting engineers have worked extensively with EMC to design wastewater treatment plant improvements in other cities in Illinois and Missouri. Therefore, King explains, the team had established a reputation for integrity with IEPA.

During the ensuing discussions, EMC worked to balance the need for major improvements with the need to contain costs. At the same time, EMC representatives recognized their firm would have to live with the final changes and generate a discharge which meets IEPA requirements.

Mariah had already invested in some internal changes, such as an improved blood rate capture system. These changes resulted in wastewater which was easier for the North Plant to treat. As discussions continued, Mariah agreed to act as a funding source for at least some of the wastewater treatment plant improvements.

King says the city had hoped for improvements costing about $500,000. IEPA initially required changes which would have cost more than $2 million. The final price tag will be $1.6 million. It will be financed by $1.2 million in bonds, which Mariah will repay, and a $400,000 Community Development Assistance Program (CDAP) grant, awarded by DCCA.

Mariah's Stadler admits the arrangement is unusual. Traditionally, a city seeks to attract industry with incentives such as providing wastewater treatment. In Monmouth, however, Mariah recognized the city's tight financial picture and agreed to repay the bonds to demonstrate its commitment to corporate citizenship.

DCCA's involvement stemmed from an economic interest, rather than an environmental concern. The North Plant project came under CDAP's category of infrastructure improvements in support of economic development.

Schmutte and Associates, of Deerfield, Illinois, prepared Monmouth's CDAP application. Owner Fredi Schmutte explains issues involving IEPA, the Illinois Attorney General and Mariah were intertwined with the city's economic interests. Because the North Plant did not meet IEPA standards, the Attorney General was poised to take legal action against the city. If the state's legal action had shut down the treatment plant, Mariah could have been forced to close. Having weathered previous plant closures, the city knew how difficult it would be to absorb the loss of 600 jobs from one of its major employers.

This CDAP program requires job creation or retention as a condition of assistance. Mariah's pledge to create up to 100 jobs after completion of the treatment plant improvements added to the project's economic benefits.

McManus agrees that if DCCA and Mariah had not combined to fund the improvements, two unpleasant options existed. The plant could have closed again, or the costs could have been passed on to Monmouth taxpayers.

With the funding in place, IEPA approved a consent decree allowing the North Plant to continue operating until the improvements go on line. Paric Corp., EMC's construction affiliate, is due to complete the improvements in October, a year after construction began.

Some of these will directly affect treatment plant operations. For instance, baffles will be installed in the 6.5 million gallon modified first-stage anaerobic lagoon. These baffles will help increase process efficiency by ensuring that all wastewater moves through the lagoon, rather than becoming pooled in a corner where it can stagnate. This change will also help the plant balance treatment of the different daily flow rates.

A thick, naturally formed layer of grease will replace a plastic cover on that lagoon. A similar grease layer has been highly successful at Mariah's plant in Columbus, Indiana. This cover will promote growth of anaerobic bacteria needed to digest wastes in the water underneath and it will contain the hydrogen sulfide. An air monitoring system will also be installed.

In two 1 million gallon aeration basins, fine bubble diffusers will replace a coarse bubble jet aeration system. This improvement will increase the amount of oxygen which is transferred into the wastewater and will improve the growth of aerobic bacteria needed during this phase of treatment.

Improvements will also include replacing or sanding and painting railings and other exposed and corroded surfaces. Drinkable water will be made available at the treatment plant. Metering, automatic sampling, instrumentation and electrical systems will be installed or improved. One city representative concluded that although there will not be any drastic changes at the North Plant, just about everything will be updated.

McManus philosophizes that some environmental requirements will become more stringent than small communities can meet without outside assistance. He points out with relief that through contracts with EMC and Mariah, wastewater treatment plant operations and the quality of the plant's discharge are "no longer our problem." This should eliminate what he terms "a cloud" over the city — a cloud which grew from longstanding problems with IEPA.

Mariah's Stadler is "just tickled" with the arrangements. Characterizing their company as environmentally conscious, Stadler says, "Our primary business is meat packing. We want to do what we do best and let the professionals take care of the wastewater treatment."

Cooperation, mutual respect and measurable results — these have been both the keys to and rewards of the successful public-private partnership actively at work in Monmouth. •

Page 10 / Illinois Municipal Review / August 1992