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Pa. city balks at ambulance service rate hike

The ambulance company and the city are at odds over a five-year contract extension that has put their long-term relationship in jeopardy

By Hannah Sawyer
York Daily Record

YORK, Pa. — For nearly three decades, White Rose Ambulance has provided EMS services to the city, and during that time, President James Arvin, a lifelong York resident, said his company has been a stalwart partner — contributing to tax coffers, supporting local businesses and responding to emergencies.

But with White Rose’s contract set to expire at the end of this year, a proposed rate hike has put that long-term relationship in jeopardy, and City Council members and the company are now at odds over the terms of a five-year extension.

Facing a tight budget season, Councilman Henry Nixon said during a committee meeting Wednesday night that “this is a question of money. That’s it.”

York has paid White Rose $70,000 annually since the company became the city’s EMS provider in 1985, said York Fire/Rescue Services Chief David Michaels.

The new proposal before council would cost the city $90,000 for the first year of service and top out at $110,000 during the final year of the contract, documents show.

Nixon said he felt like the city was being “boxed in” to the more expensive contract and wanted to explore other options before approving a half-million dollar expenditure.

Arvin argued that the higher price tag has become a necessity to keep his business going.

“For the past ... three contracts, I’ve felt like I was being strong-armed into keeping the prices under control. Realizing the city was having some difficulty and we could afford to do it, I did it,” he said. “But our costs are unbelievable.”

Payroll alone is $10,000 a day, he told council members, and the company collects just $0.26 for every dollar it bills. Plus, in the last two and a half decades, his mercantile taxes have skyrocketed from about $1,700 to more than $22,000 this year.

“A modest increase after 25 years is not asking too much,” he said. “I’ve paid my increases through the last 25 years.”

The council has requested that the EMS services contract be put out to bid; however, Arvin says that he will not be able to compete with suburban companies that operate as nonprofits and don’t pay property taxes.

Several outside operators have shown interest in the contract — although, they also have voiced concern about the potentially short turnaround, Michaels said. A new operator would need to be ready to take over EMS services by Jan. 1, when the contract with White Rose expires.

None of the interested parties have submitted official bids.

Councilman David Satterlee said he was worried that dragging out the bid process could leave the city without an EMS provider in 2015, which would be illegal.

“It’s a complicated situation,” he said.

If the city chooses not to renew the contract with White Rose, Arvin said he will have to tell his 30 employees that they are out of a job.

“Where’s the loyalty to me as a businessperson and taxpayer?” Arvin asked. “In a nutshell, I’m really disappointed.”

Vote planned

Council moved a resolution authorizing a contract with White Rose Ambulance to its Nov. 19 agenda to allow other companies time to submit bids before a vote is taken. If another company submits a lower or more competitive bid, council members said they would take no action on the White Rose contract and vote instead to accept a new proposal.

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©2014 York Daily Record (York, Pa.)

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