Brownwood City Council voted not to ratify a decision made by Brown County Commissioners on Monday, May 19th to assign and extend the contract for ambulance and emergency medical services between Brown County and Guardian EMS, which is being acquired by Allegiance Ambulance.
Although the stability of Allegiance was very attractive, a few council members felt the matter should have been taken up in a joint meeting of Brown County, City of Early, City of Brownwood and City of Bangs officials before a decision to extend the contract was made.
Key terms of the agreement are as follows:
- Term: 3 years, subject to two successive 5-year extension options of the contract. At the end of the term, the contract could be resigned by both parties or the county could decide to go out for bids
- The subsidy would remain the same at $133,488 total per year ($11,124 per month), of which the City of Brownwood’s portion would remain the same at $47,187 or 35.3% of this subsidy.
- CPI increase: Allegiance has waived the CPI increase of 3%, making the contract subsidy paid for EMS service fixed for the full period of the contract.
Mayor Stephen Haynes explained that the contract had been negotiated by the county and that the council needed to decide if they would ratify the county’s action and agree to the continued 35.3% portion of the subsidy to be paid.
City councilman Eddie Watson asked why the council did not meet with the county before the decision was made by commissioners.
“Certainly we could, as it affects the city and the services that are provided,” said Haynes.
Haynes and Rountree explained that the previous contract still had 1.5 years left; however was renewed for three years and had a clause for assignability by Guardian with approval of the commissioners.
Rountree stated that the city council has the option to either ratify the agreement or not and then go out for bids for the city’s own ambulance service.
Councilman Draco Miller agreed and stated that he recalled when another ambulance service (Heart of Texas EMS) came to the council asking for a permit to operate within the city and was denied; however at that time, the council stated that once the contract with Guardian EMS expired, that bids would be taken and their service would be considered.
“I have an issue with that because I don’t think that is fair,” said Draco before making a motion to deny ratification of the county’s contract assignment. “I am a stickler for free enterprise.”
He explained that he felt the council had to be true to their word and allow the other company a chance for the city’s business and to be good stewards of the taxpayer’s money.
Mayor Haynes cautioned the council to consider that this action may leave the city without ambulance service after Allegiance completes the acquisition of Guardian on June 8, 2014 and that the process to go out for bids could not be completed before the next council meeting, June 9th.
Council voted 3-1 with council members Miller, Watson and H.D. Jones voting in favor of denying the ratification of the agreement. Council agreed that a joint meeting between the city and county commissioners needed to be held, which will be held at 1:45 p.m. on Friday, May 30 in the Brown County Courtroom, first floor of the courthouse.
Allegiance Ambulance is the largest Texas-based private ambulance service in the state, with 85 ambulances in operation and the third largest ambulance service overall in Texas. Their primary investor is billionaire Red McCombs has committed to growing the company to be one of the largest ambulance companies in the nation.
Related article: Guardian EMS to See Name Change with New Ownership
