City manager warns of large EMS price increase, seeks formal presentation from contractor

The City Manager told the Universal City Council on May 6 that Sherz EMS has notified the city of proposed large rate increases under the city's existing five-year contract and that staff will ask the ambulance provider to present options to council at a future meeting.

The manager said the current contract allows annual increases of 5% but Sherz EMS recently proposed a 35% increase next year with additional increases in the two years after that. "Collectively, that is 49%," the manager said. The manager added, "I have advised them that that is unacceptable. Unacceptable. It is a breach of contract," and asked the company to make a formal presentation so council members could review the company's explanation and proposed budget impacts.

Why it matters: Emergency medical services are a core public-safety budget item. The manager told council members he will send them the contract and the firm's financial statements ahead of the presentation so council can consider policy and budget responses. The manager also said he expects to bring firm options for council consideration when Sherz EMS presents.

Council did not take action on the report at the May 6 meeting; the manager framed the remarks as an informational heads-up and said the firm will be asked to appear at an upcoming meeting.

Background and next steps: The manager said the city is two years into a five-year contract and that staff will circulate the provider's materials before the future meeting. No formal proposal from council or staff to terminate or rebid the contract was presented at the May 6 meeting.

The city did not provide written numbers beyond the firm’s announced percentage increases at the May 6 meeting; the manager said he would circulate the contract and the provider's statements to council prior to the company's presentation.