Ambulance service options
Black Hawk says form “Authority”
Black Hawk, Central City and Gilpin County officials have formed an ad hoc committee to determine how best to provide ambulance service for their jurisdictions. The committee held their inaugural meeting on April 15. Black Hawk Mayor David Spellman, Central City Mayor Ron Slinger and Gilpin County Commissioner Buddy Schmalz attended. Also at the table were Black Hawk Attorney Corey Hoffmann, Central City Alderman Tom Reilly and Central City Manager Lynnette Hailey. The three governmental entities subsidize the current service provider, Gilpin Ambulance Company. The number of ambulance calls has dropped significantly resulting in a shortfall of anticipated revenues. That’s further complicated by a lack of accounts receivable. People and insurance companies just aren’t paying. Consequently, the ambulance company would have run out of funds by July. The cities and county anted up an additional $107,000 to insure ambulance service continued at the current level until then. All of the entities are looking to enhanced gaming, which begins in July, as a remedy. They’re hoping 24-hour gaming seven days a week, an increased betting limit and more game variety will bring more visitors, meaning more ambulance calls and thus, more revenue. However, even if that happens the entities don’t want to be surprised by future money problems. To that end, they are looking at reorganizing the ambulance company’s current non-profit status to one that allows more funding options. For Black Hawk, said Spellman, there are two options: establishing a Gilpin Ambulance Authority or going it alone.
Black Hawk currently pays the bulk of the annual subsidies with $185,000 in cash plus the salaries and benefits for six of the ambulance staff, approximately $325,000 more. The county puts in $172,000 and pays the workers compensation insurance of $27,000. Central City contributes $110,000. Black Hawk could pull out of the current arrangement and provide service just to Black Hawk, said Spellman, but their preference is to form a separate governmental entity, an “authority,” set up a Board of Directors and contract with an administrator, such as Laubhan, to run the service. The new entity would not have taxing authority, meaning no new mil levy and no new taxes-at least from them. Schmalz pointed out that an increase in residential taxes, something that hasn’t been done in 17 years (except for the school district), could be used to raise the money. Black Hawk opposes any increase in taxes for their residents or casinos, including formation of a special district. Hoffmann came prepared with a draft document detailing suggested budget requirements ($1.5 million), vehicle ownership, garage and office space needs and a formula for dividing the expenses between the three entities, if an authority is formed. Gilpin County commissioners have raised questions about the basis of the formula and Schmalz continued to do so at the ad hoc meeting.
The formula sets the county’s base contribution at 25% of the amount needed for operations, then tacks on additional funds determined by the number of calls requiring patient transport. The remaining 75% is split between the county, Black Hawk and Central City based on the number of transports. For the county, that’s 21%. Black Hawk’s portion is 62% and Central’s is 17%. Commissioners have taken issue with the 25% share the county must pay off the top. They’ve asked, “How was that derived?” Spellman explained that most of the ambulance calls occur in Black Hawk, however those that go out into the county result in more wear and tear on the vehicles from unpaved roads, increased fuel consumption and costs and more staff time. Using information provided in part by the county, Spellman said county calls are more expensive. The formula takes all of that into consideration, he said, though stopped short of explaining the math.
Under Black Hawk’s proposal, the number of seats on the Board of Directors is also determined by the number of transports. The two entities with the largest number of transports get the seats. On a five-member board, that leaves one entity with only one seat. Schmalz raised concerns about using the transport number to determine seats. That number could fluctuate, he pointed out. Currently, Black Hawk has the highest number of transports and Central City the least. However, with the planned expansion of casino development in Central, that could change. Schmalz argued that calls without transports should not be discounted as service is still being provided. He suggested determining the number of director seats by the volume of calls or the amount of subsidy paid. The Black Hawk representatives remained firm on the county’s starting percentage of 25%. That now rests with Schmalz and fellow commissioners, Forrest Whitman and Jeanne Nicholson.
Meanwhile, ambulance service continues with two ambulances stationed in Black Hawk and one ambulance in mid-county (High Country Fire Protection District Station 2). Laubhan will be directed to pursue grant funding; a resource with more potential if the service is organized as an authority. Grant funding can be applied to reduce the county’s 25% contribution said Spellman. If the three entities can agree to move forward with the authority, they would like to have an administrative director in place by September 30, 2009 and the documents to form the authority drafted by October 15th. With that timetable, a “Gilpin Ambulance Authority” could be in place on January 1, 2010.