HomeMy WebLinkAboutItem 6h. Harris and Vert - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: September 15, 2026
TO: Mayor and Council
FROM: Randy Harris, Fire Chief
Prepared By: Nicole Vert, Business Analyst
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM #6h – SUPPORT FOR THE CITY OF PASO ROBLES BID ON THE
SAN LUIS OBISPO COUNTY AMBULANCE SERVICES CONTRACT
Staff received the following questions regarding Item #6h on the agenda for the
September 15th, 2026 City Council meeting. The questions are below with staff’s
response shown in italics:
1) When the RFP goes live, is it possible that the Alliance model’s selected
vendor could also apply for the ambulance contract themselves directly? Is
there any potential for conflict here?
No, the vendor is under a contractual agreement not to compete against the
Alliance partnership. If the Alliance chooses not to bid on the ambulance RFP,
then the vendor would be released from the agreement.
2) What if, due to changes at the national level, the Alliance model becomes
not as lucrative as originally thought? What happens if we go forward with
the Alliance model, “win” the contract, and the revenue is not what we
anticipated? Could cities be left in a bad situation with not enough funding
to run the system?
The Alliance model does not require federal subsidies (PP-GEMT or other
funding subsidies) to be financially sustainable. Similar to the existing private
transport model, the newly selected ambulance provider would be able to adjust
their rates to cover their operational costs. One important point to note is that
federal subsidies are estimated to only apply to a small percentage of transports
in SLO County. While existing federal subsidies would provide additional
revenue to the Alliance model than would be available to the current private
contractor model and therefore provide additional funding for investments in
enhanced levels of service to the community, the subsidies would not be
necessary for the Alliance model to work. However, it is anticipated that
participating cities would loan start-up funding under the terms of a Memorandum
of Understanding, and the loss of federal subsidies may mean that it would take
longer for the cities start-up loans to be repaid.
ITEM #6h – SUPPORT FOR THE CITY OF PASO ROBLES BID ON THE SAN LUIS OBISPO COUNTY
AMBULANCE SERVICES CONTRACT Page 2
Additional information regarding this issue is provided in the attached letter
received from the Fire Chiefs’ Association of San Luis Obispo County dated
September 14, 2026. (Attachment A.)
3) Will there be a cost to the city of joining the alliance model? One time or
ongoing?
Yes, although until the RFP is released and the requirements are known, it would
be premature to make any fiscal assumptions. The costs are projected to be
“one time” start-up costs to cover operating expenses (for approximately the first
six months) until payments from patient billing are received.
4) What are the potential downsides, if any, to going forward with the Alliance
model?
The potential downsides for the Alliance model are similar to those that exist
today for the private provider. Any increases in operational costs such as fuel,
equipment, salaries, or insurance would have an impact. Additionally, any state
or federal regulatory changes or a decrease in transports could impact revenue.
The RFP is anticipated to allow adjustments in rates to cover these future
financial liabilities. That is the same allowance that the private provider currently
has in their contract. Fortunately, with increased efficiencies, oversight and
transparency, the Alliance model is better positioned to make critical system
improvements.
In addition, due to the recent decision by the City of Morro Bay to not adopt a support
resolution for the City of Paso Robles, staff have revised the proposed resolution
accordingly. (Attachment B) The proposed changes are as follows:
WHEREAS, the seven city managers representing the six incorporated cities of
San Luis Obispo County, as well as the San Luis Obispo County Fire Chiefs
Association, have unanimously endorsed and expressed support for the City of
Paso Robles submitting a bid for the County ambulance services contract; and
ATTACHMENTS
A – Letter from Fire Chief’s Association of San Luis Obispo
B – Updated Draft Resolution supporting the City of Paso Robles in submitting a bid for
the County of San Luis Obispo’s ambulance services
R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, SUPPORTING THE CITY OF PASO ROBLES IN
SUBMITTING A BID FOR THE COUNTY OF SAN LUIS OBISPO’S
AMBULANCE SERVICES CONTRACT
WHEREAS, the City Council of the City of San Luis Obispo controls, through
statutory authority and policy, the provision of fire suppression, emergency medical
services (EMS), hazardous materials mitigation, and rescue operations within its
jurisdictional boundaries; and
WHEREAS, pursuant to Health & Safety Code § 1797.201, the San Luis Obispo
County Board of Supervisors holds authority over the regulation and contracting of
ambulance transport services within San Luis Obispo County; and
WHEREAS, the current opportunity to bid for the County of San Luis Obispo’s
ambulance services contract allows for significant improvements to the ambulance
transport system through a more dynamic community-based model; and
WHEREAS, the City of San Luis Obispo City Council supports an enhanced
ambulance transport system that is robust, transparent, accountable, and which reinvests
revenues back into local communities after expenses to support proactive programs
addressing mental health, substance abuse, and the needs of unhoused community
members; and
WHEREAS, the city managers representing six incorporated cities in San Luis
Obispo County, as well as the San Luis Obispo County Fire Chiefs Association, have
endorsed and expressed support for the City of Paso Robles submitting a bid for the
County ambulance services contract; and
WHEREAS, a Paso Robles-led model would foster strong local partnerships,
accountability, and transparency, as well as encourage collaborative governance across
jurisdictions that directly benefit all communities within San Luis Obispo County, including
the City of San Luis Obispo; and
WHEREAS, the City Council believes that this approach offers an opportunity to
build an EMS system that is more responsive to community needs and better aligned with
modern public safety practices, while ensuring that revenues are invested back into the
people and services of San Luis Obispo County;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows/or that:
SECTION 1. The City Council of the City of San Luis Obispo hereby expresses its
strong support for the City of Paso Robles to submit a bid for the County of San Luis
Obispo’s ambulance services contract.
Resolution No. _____ (2026 Series) Page 2
R ______
SECTION 2. The City Council further supports the pursuit of a comprehensive,
transparent, and accountable EMS system that prioritizes community needs, reinvests
revenues locally, and provides sustainable funding for EMS-related and preventative
public health programs.
SECTION 3. The City Council encourages the San Luis Obispo County Board of
Supervisors and all relevant decision-makers to give favorable consideration to this
model, which will yield direct and meaningful benefits to residents of San Luis Obispo and
all communities throughout the County.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2026.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk