Small Town News

Fire District 5 rejects $2-million purchase

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The Mason County Fire District 5 Board of Commissioners rejected a proposal to move forward with the $2-million purchase of Mason County Medic One (MCMO) at its regular meeting yesterday, pending further analysis of financial details.

Fire District 5 has been considering the purchase of MCMO -- a private ambulance service operating within the City of Shelton and 10 of the 14 county fire districts -- since July 2008, when the district entered into an interlocal agreement with the City of Shelton to provide fire service inside city limits.

Purchasing the ambulance service would bring in an alternate revenue stream to the cash-strapped district, said Fire Chief Richard Knight, who proposed an action plan to move forward with the purchase.

"We need that diversified revenue stream," Knight said. "I have no doubt."

Both the district and Medic One expect an increase of between 4 and 8 percent in patient transport in the next several years, which would strain their budgets further. According to a consolidation plan put together by the fire district, acquiring Medic One's customer base could bring in approximately $3 million over a five-year period.

Commissioner Pat McGanney, however, expressed concern over what he considered were vague financial numbers from Medic One.

McGanney, along with Commissioner Chuck Huff, ultimately defeated the motion.

"To make a $2-million decision, we need to have the right numbers," he said, referring to the disputed number of transport calls Medic One received in 2009. "Having the accurate numbers and making an informed decision is important."

McGanney was also uncomfortable with the slim margin of funds the district would be left with after expenses, including the 20-year finance bond with a 4 percent average annual interest rate the district would take out for purchase. Huff also said he was holding out for a "better and better" budget presentation.

Representatives from Medic One in the audience, however, disagreed that the numbers were unclear.

"Why can't Mason 5 take care of its own business? Or educate the public and put it to a vote?" said Kim Doyle, executive director of the corporate branch of Medic One.

Commissioner Tom Taylor, the only assenting vote, urged the other commissioners to take into consideration the long-term benefits of acquisition.

"I keep looking toward the future, and I think this is going to be a very good revenue stream," he said.



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© 2010 Shelton-Mason County Journal Shelton, Washington. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

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