Fountain Valley fire chief pitches city‑run ambulance service; council approves participation in state VRRP funding

Battalion Chief Tim Saiki outlined a plan for a city‑operated ambulance program on June 17, telling the City Council Fountain Valley could move from the current public‑private model to operate two 24‑hour ambulances year‑round, house crews in fire stations and staff them with Fountain Valley ambulance operators. Saiki said the city would purchase four Type 3 ambulances (two active units and two reserves), add an EMS captain and administrative division chief, and cross‑staff reserve ambulances to reduce surge contracting costs.

Saiki described the existing contract with Falk (formerly Care Ambulance), in place for more than 25 years, as providing two dedicated ambulances to Fountain Valley (one 24‑hour, one 12‑hour). He said the current contract expires November 30, 2026, and that launching a city program would require significant start‑up capital — vehicle procurement, medical equipment, station upgrades and contingency — that staff estimated at almost $2.0 million. Saiki also showed a side‑by‑side of projected year‑6 contract costs and his department’s worst‑case personnel costs, explaining that transition to city staffing could reduce administrative profit, station rent and surge charges built into the private contractor price.

Council members pressed on staffing and cost details. Saiki’s staffing model calls for 12 full‑time ambulance operators (three shifts) and six part‑time employees to backfill vacancies; he said overtime and shift patterns were included in his projected salary figures and that the program aims to remain competitive with county market wages. Saiki estimated the city used surge ambulances more than 1,200 times in the last 12 months at a cost of roughly $259,000; he argued adding 12 hours to the second ambulance plus cross‑staffed reserves and automatic aid agreements could reduce surge expenditures and improve response reliability.

The presentation also addressed revenue and reimbursement. Saiki told council the city’s EMS billing (managed by a contractor) is currently projected at about $4.6 million and that billing and revenue collection would remain unchanged whether the city owned ambulances or continued the private contract. He said recently available intergovernmental transfer programs made the timing for considering a city program more favorable.

Funding link to VRRP: Saiki returned later in the meeting to present a separate but related request to participate again in the Voluntary Rate Range IGT (VRRP) administered by the California Department of Health Care Services and distributed through CalOptima (and Kaiser this year). Saiki said Fountain Valley participated last year and received about $1.4 million in net cost recovery after contributing roughly $936,815; for the new transaction staff requested authorization to contribute $530,379 (including a small contingency) to secure an estimated disbursement of approximately $1.1 million and a projected net recovery of $566,710. City staff emphasized the funds are restricted: they must be used to reimburse uncompensated Medi‑Cal costs and cannot be deposited to the general fund.

Council discussion focused on timing, whether VRRP receipts could be applied to ambulance capital purchases, and procurement timeframes (ambulance lead times were estimated at 12–21 months). Saiki said he sought direction to take the next steps, pursue vendor conversations and return with an official implementation plan and formal council action when required. The council later voted to authorize the city manager to execute the VRRP participation agreements (Item 8) by a recorded vote of 5–0.

What happens next: Staff said the next procedural steps would include further vendor outreach, more detailed personnel and procurement cost breakdowns, and, if council gives formal direction in a future agenda item, formal authorization to appropriate or reallocate funds for ambulance start‑up. Saiki asked council for direction to develop a formal implementation timeline and to return with an official proposal for approval.