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Council presses staff to review ambulance contract after surprise cancellation fee
Summary
Council members were told there is a reported $158,000 cancellation/restocking fee on an ambulance order and raised concerns that comparable ambulances cost substantially less. The council asked staff to obtain contracts and contact the vendor to seek negotiation or alternatives.
Council members and staff spent an extended portion of the meeting discussing a previously ordered ambulance and an apparent $158,000 cancellation or restocking fee after a cancellation discussion nine months earlier. A council member (S2) reported contact with an Elkhart vendor offering a similar chassis for about $190,000, while the county’s contracted unit was priced near $260,000.
Participants debated whether the contract included assignment language allowing the vendor to transfer obligations after a corporate acquisition, and the county's attorney-like speaker (S8) noted typical contract clauses that allow recovery of costs and attorney's fees if the county cancels. S8 said the county may risk attorney-fee exposure but also that the county might prevail depending on contract language.
Council members criticized nine months of limited communication about canceling the order and asked staff to retrieve full contract documentation. One member (S5) urged canceling the higher-priced order and purchasing an available unit if legal review allows. The chair (S2) and others instructed staff (Jacob) to obtain contract documents and reach out to the vendor to explore negotiating reduced cancellation fees or alternative solutions.
No final contract cancellation was approved during the meeting; the council directed staff to report back with contract details and any negotiated outcomes.
