A pandemic-era policy that changed how Elgin purchases city vehicles and equipment saved the city $424,000 last year, officials said.
Implemented because of chain supply issues tied to production and shipping delays, the revised approach did away with the city’s long purchase approval process in favor of setting up a budgeted pool of money from which staff can draw to buy items.
The system allows the best deals available to be locked rather than having to wait as long as six weeks to obtain approval, during which time the price could increase or the deal be lost.
It’s become a proven and efficient model, and one the city has continued to use even though the pandemic has ended, officials said.
Last year, the council approved $4.9 million — the projected cost for all the vehicles and equipment earmarked for purchase in the 2025 budget — and ended spending $424,000 less because of deals staff members were able to negotiate or obtain, officials said. This year $4.4 million has been budgeted to buy 39 vehicles and multiple pieces of field equipment.
The purchase list is handled by the Public Works Department on behalf of all city departments, including public works, utilities, land management, parks and recreation, neighborhood services, building maintenance and the police department.
Planned purchases being made this year include a snowplow, a flatbed hauler, a street sweeper, five utility vans and 12 police vehicles, all of which are included in the 2026 budget and were approved unanimously last week by the council.
Public Works Director Aaron Neal said prior to the pandemic, the purchasing process was time-consuming. Staff wasn’t allowed to spend more than $25,000 without council approval so every large vehicle or equipment purchase required that a legal request be submitted to the city attorney and then sent on to the council.
“It was a very cumbersome process,” Neal said at a recent council meeting.
When the pandemic hit, contracts were canceled and the city forced to make purchases locally, he said. Approval under the old process could take as long as six weeks, meaning the city missed out on some items that staff wanted to buy.
Under the new method, a check can be cut within a few days of a purchase deal being made, Neal said.
“We cut out a lot of the red tape,” Neal said.
The arrangement also lets staff take advantage of joint purchasing agreements, find competitively priced contracts and make off-the-lot purchases when necessary, officials said.
While supply chain issues have largely been resolved, the system is one Elgin plans to keep using.
“It’s a lot of money (to budget in a lump sum), but there are checks and balances in place,” Neal said.
One of them is the annual report submitted to the council that documents how much each vehicle cost and where it was purchased, he said.
Councilwoman Tish Powell acknowledged at the council meeting that it might seem unorthodox to budget a pot of money for the purchases, but the savings netted makes it worthwhile.
“I definitely approve and love the innovation that continues to come from our team,” Powell said. “Things like this make it easier for you to do your job and for us to make sure you have the tools to do your job.”
Councilman Corey Dixon was so impressed with the procurement system that he said it “seems like it’s something we can bundle up and sell to other municipalities. … I’m glad we are saving money doing it this way.”
Gloria Casas is a freelance reporter for The Courier-News.
