The Sioux Falls City Council moved on first reading July 15 to consider a franchise ordinance and franchise agreement granting ground ambulance service to Paramedics Logistics South Dakota LLC (PCMS), advancing the item to a second reading scheduled for Aug. 6.
City public‑health and emergency services staff and members of the Regional Emergency Medical Services Authority (REMSA) described a multi‑month negotiation with PCMS and recommended a five‑year franchise that updates quality measures, commits the provider to new capital equipment and ambulance replacements, and avoids a direct city subsidy.
Director Joe Kipley said an outside consultant commended the system‑level coordination among 911 dispatch, fire, police and the ambulance provider and that PCMS received strong marks in the consultant’s review. He said the city negotiated updated oversight provisions, quality metrics and commitments by PCMS to phase in new ambulances and equipment, with renewed reporting and contingency planning should reimbursement or market conditions change.
Several members of the public addressed the council. Supporters, including REMSA board members and a former REMSAA chair, praised PCMS’s performance, quality measures and continued partnership across the emergency system. Other speakers urged an open request‑for‑proposals (RFP) and raised concerns about corporate behavior by ambulance providers and employee treatment; one commenter described a personal medical incident and another discussed past litigation and whistleblower settlements involving national ambulance companies.
Councilors asked staff to provide clearer answers about whether the consultant recommended the overall system or the existing provider specifically, and urged REMSA to provide an official public recommendation at its July 23 meeting. Director Kipley said staff favored a stable five‑year agreement to provide continuity while the city evaluates longer‑term regionalization and other options, and that the negotiated approach gives the city oversight tools and contingency plans.
The council voted unanimously to advance the ordinance and agreement to a second reading; members said they expect REMSA to weigh in and that final approval will follow further review and a public hearing.