Bayne Hughes
The Decatur Daily, Ala.
DECATUR, Ala. — The $2 million hurdle First Response Ambulance Service must clear to renew its certificate for operating in Decatur involves a performance bond that the company says is unreasonably high and impossible for it to get.
A Decatur ordinance passed last year requires the bond to guarantee the city will be covered in case of a middle-of-the-night disappearance by the service, such as occurred in 2012 when Decatur Emergency Medical Service Inc. folded.
It’s the main issue that’s hung over the city and First Response, its sole ambulance provider, since the ambulance service ordinance took effect in September 2019. It’s also a likely topic at a special called meeting set for Monday at 4:30 p.m.
The City Council voted this Monday to extend the deadline for renewal of the company’s license to operate in the city — called a certificate of public necessity and convenience (CPNC) — from Wednesday to Oct. 5. The CPNC had previously been set to expire Wednesday.
David Childers, president and owner of HealthCare Investment Group, which owns First Response, told the council Monday during a review of his application that two financial institutions said they would not issue a $2 million bond for any ambulance service to operate in Decatur.
Childers said Valiance, a financial broker that the city uses, said the 20 underwriting companies it deals with would not support a bond at this amount.
“They would not issue a bond because the way the ordinance is written is it’s a death penalty,” Childers said. The ordinance imposes fines of up to $20,000 and points that can lead to loss of the CPNC for violations.
Assistant City Attorney Chip Alexander said a financial institution told him First Response didn’t provide the “correct” financial documentation.
“They don’t know if the amount is too much or not enough,” Alexander said.
Council President Paige Bibbee suggested finding a compromise of either a lower bond or a collateral agreement.
“We need to work out something,” Bibbee said.
Childers said he would be willing to agree to a contract in which the company would guarantee a 30-day notice and $25,000 payment if it decides to leave the city.
“We’re not planning to leave any time soon,” Childers said. “We’re looking forward to a future in the city.”
Councilman Billy Jackson said the ambulance service “needs equipment, a bond or some kind of buy-in for us that would be significant.”
Childers and Alexander agreed to meet and discuss a plan for dealing with an ambulance service closure or move out of the city. The council would have to revise the ordinance if they agree to anything other than a $2 million performance bond.
The bond discussion came at the end of a review of First Response’s CNPC application. Fire Department officials said First Response’s answers were vague and incomplete, while ambulance service officials contended they were complete based on the application’s questions.
As they went through the questions, the council, Decatur Fire & Rescue and First Response officials agreed the questions need to be revised. For example, a question asked if any of the company’s officials had been arrested, and Bibbee said that, instead of arrested, it should have asked if any of them had been found guilty.
They all agreed a question asking how many trucks the ambulance company “desires” to have in operation was vague. Instead, they agreed the application should ask how many vehicles do they have in their fleet, how many would be available for emergency calls and what are their age, mileage and condition.
Childers pointed out the city and state can inspect their trucks at any time and each requires a sticker of inspection approval.
EMS Coordinator Ashley England said the application needs to provide the city with more information on the ambulance service employees’ qualifications and certifications and the equipment and medications on the ambulances.
Childers said his employees and ambulances meet state and national qualifications, but he agreed to provide more information. He said Tuesday that he has provided the requested information to Bibbee.
Councilman Charles Kirby, a vocal critic of the ordinance and supporter of First Response, said the review brought out the problems in a flawed ordinance.
“That’s what happens when you’re in a hurry and you just throw something together,” Kirby said.
After Monday’s meeting, Fire Chief Tracy Thornton, Childers and Bibbee said they were pleased with the progress made in the meeting, especially after last week’s contentious Ambulance Regulatory Board meeting.
“If they had just answered our questions, we wouldn’t have to do this today,” Thornton said. “It would have been easier on everyone.”
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©2020 The Decatur Daily (Decatur, Ala.)