ROCHELLE — The city of Rochelle is looking into a pay-as-you-go system that would allow customers to pre-pay for utility services. 

Customer Service supervisor Barbara Bell addressed council regarding the metering program during Monday evening’s meeting to explain the benefits both to the customer and to Rochelle Municipal Utilities.

The proposed program would also allow customers to monitor their accounts in real time through the website or smart phone as well as giving an opportunity to pay smaller, frequent payments.

“One of the benefits to the customer would be that the deposit can be paid over time instead of paying up front, and they would not have late charges because it is a pay as you go program,” said Bell. “The payments can be made through the phone and would be tracked in dollars instead of kilowatt hours as we have now.”

The program would not alter the temperature moratorium currently in place; utilities would not be shut off if temperatures are below 32 degrees. 

Benefits to the RMU would include reducing write off and collections related costs. 

Council member John Bearrows initially questioned the cost of implementing the program versus customer participation. The integration fee would have been $15,000 which does not include a monthly fee for each customer participating in the program.

City manager Jeff Fiegenschuh said the program would reduce late fees and reconnection fees to customers.

“The whole point in this type of program is to try and find a way to reduce our uncollected debt and to give people the opportunity to pay their bills and do it in a way where we are not charging reconnection fees and deposits,” Fiegenschuh said. “If they have cash they can start up their service right away.”

Council members also questioned how to get community participation, whether through social media or direct mail. Bell indicated on average about 60 to 80 shut off notices are sent out on a monthly basis. Out of that number, about 20 customers enter into a payment agreement to avoid shutoff. 

“On our website, we could pose a question and explain this is a plan we are thinking about,” Bearrows said. “They could indicate if they were interested or not, then we would have a pretty good idea how many people would participate before we spend $100,000 over three years.”

No decision was made at this time. 

Fiegenschuh reiterated he and Bell would revisit the plan and speak with the program provider, Exceleron Software, LLC, about ways to reduce the fees or possibly look into other providers. 

Equipment purchase

In other business, council approved a resolution waiving competitive bid requirements to authorize the purchase of two dump trucks from CIT Trucks, LLC.

Supt. of Streets and Cemetery Tim Isley explained during the past two years his staff has researched different truck options in search of the most efficient, cost-effective and reliable that would fit the needs of the city. 

Total cost for the trucks and wing plow is $343,898 and would be financed through a local bank with an interest rate not to exceed 4.75 percent.

The two trucks will be replacing an existing 2002 and 2003 dump trucks.

Council also approved an engineering agreement with Willett Hofmann and Associates for the second phase of the sanitary sewer lining project in the northeast part of the city. Last year, RMU rehabilitated about 4,500 feet of sanitary sewer and 16 manholes in the Meadowbrook area. This section has experienced frequent flooding and sewer backups. 

The engineering agreement is $56,100.

“There is about 100 miles of sanitary sewer lines in Rochelle,” Lanning said. “RMU intends to line approximately 7,000 feet of sewer in that area using the same technology as a continued effort to reduce infiltration in our system.”

Lanning indicated the project would be completed in the fall and would take about 2-3 weeks.

A date for the public hearing in connection with Northern Gateway Tax Increment Financing Redevelopment project is set for Monday, Apr. 22 at 6:30 p.m. at Rochelle City Hall. The hearing will include the proposed amendments to add the high school bus barn into the TIF district.