STROUD – The EMSA board met in executive session Wednesday to discuss information submitted by companies seeking its lucrative ambulance contract, with the agency’s attorney saying state law gave board members the right to close the meeting.
"This is sensitive information not allowed to be released to the public. It is both under state and federal law a trade secret," said EMSA attorney Jim Orbison.
He said board members would be reviewing financial information submitted by three companies seeking to bid on the agency's ambulance contract, currently valued at more than $150 million.
Orbison said the executive session would only be allowed "for the limited purpose of determining whether or not these bidders are qualified to bid."
Before the board voted 9-0 to go into executive session, trustee Phil Lakin, who is also a Tulsa city councilor, expressed concern about legal protection board members would have should the meeting later be found in violation of the Open Meeting Act.
"Are we as volunteer board members protected by your opinion? I do not want to find ourselves in the position where we could be violating the Open Meeting Act," Lakin said.
Orbison referred to criminal charges recently filed in Oklahoma County against members of the state Pardon and Parole Board alleging board members violated the act.
"I'm sure that's weighing on your mind," Orbison replied.
However, he said, the law requires such violations to be willful and said board members would likely be protected if they were following the advice of their attorney. Orbison also said board members would be under greater legal risk by publicly discussing corporate financial records than by holding the executive session as posted on the agenda.
EMSA's agenda states the executive session would be held "for the purpose of reviewing and discussing information furnished by potential proposers to EMSA, in order to establish minimum qualifications to submit proposals for ambulance services."
At the meeting, the board is also considering changes recommended by an investigative state audit, prompted by a Tulsa World investigation into EMSA’s billing and spending practices. The audit criticized EMSA for reimbursing its CEO for “unwarranted and extravagant” expenses and said the board was failing its duty to oversee the agency.
The Emergency Medical Services Authority is a government agency that supervises a contractor providing ambulance service to more than 1 million people in Tulsa, Oklahoma City and surrounding suburbs.
The executive session prompted the 11-member board of trustees to hold its meeting Wednesday in Stroud instead of the usual meeting via videoconference in Tulsa and Oklahoma City. The board is in the process of developing a request for proposals for a new ambulance contract, expected to be approved later this year.
The agenda cites a general exemption in the state Open Meeting Act allowing public bodies to hold executive sessions when discussing matters "where disclosure of information would violate confidentiality requirements of state or federal law." The agenda does not state what state or federal laws require the board to keep information furnished by companies seeking the contract confidential.
Information discussed in the executive session was to be used to determine in public which companies are qualified to submit proposals for ambulance services, the agenda indicates.
Kelli Bruer, a spokeswoman for EMSA, said in an email Tuesday to the World that the executive session is authorized by law.
EMSA “has a demonstrated record of transparency and complying with the Open Meetings Act," Bruer said.
Paramedics Plus, based in Texas, has contracted with EMSA since 1998 to provide paramedics. It has a five-year contract, approved by the board in 2008 and signed by EMSA CEO Steve Williamson, valued at more than $150 million.
An email to board members sent by an EMSA administrative staff member states: "Our legal counsel strongly recommends an Executive Session be held during the board meeting on March 27 to discuss matters regarding the RFP (request for proposals) where disclosure of information would violate confidentiality requirements."
Joey Senat, an associate professor of journalism at Oklahoma State University, said he is not aware of a state or federal law allowing executive sessions to be held when public bodies are discussing information used to developing bidding qualifications. Depending on how they are written, such qualifications could screen out potential bidders on contracts.
Senat said board members are held responsible for violations of the Open Meeting Act, regardless of the legal advice they receive.
Oklahoma County District Attorney David Prater has filed charges against members of the state Pardon and Parole Board for alleged violations of the state Open Meeting Act.
A recent state audit and the World’s investigation has documented potential conflicts of interest between EMSA and its contractor, Paramedics Plus.
The audit, released in January, found that EMSA made $7.1 million in purchases on behalf of Paramedics Plus, including a "gambling-themed event" and rental of a frozen drink machine. Most of the purchases were for fuel and the money was deducted from EMSA's payments to the company.
Auditors questioned "the appropriateness of this arrangement," which allows the company to "take advantage of EMSA's tax exemption as a public entity and leads to questionable expenditures."
EMSA’s agenda for Wednesday’s meeting indicated the board will vote on changes to its contract with Paramedics Plus. The agenda states that the board will consider “amendments to the 2013 RFP and current contract between EMSA and Paramedics Plus to ensure EMSA is responsible for all tax exempt transactions.”
The audit also found that Williamson sought to be reimbursed for two spa bills - for $415 and $490 - indicating that Paramedics Plus should be billed. Williamson signed EMSA's contract with Paramedics Plus and was involved in negotiations.
The company also paid part of Williamson's travel costs in his role as president of an ambulance industry trade group. The World's investigation found EMSA accepted $25,000 from Paramedics Plus to defray some of Williamson's travel for the American Ambulance Association.
Records do not show that board members were informed of the travel payments.
At a board meeting in February, Williamson apologized for "scrutiny" that has been focused on the agency over its spending practices.
"I know I owe an apology to the board for some actions that could be construed as outside the scope of the public trust," Williamson said at the meeting.
A company official with Paramedics Plus also strongly defended his company at the meeting in February.
Ron Schwartz, president of Paramedics Plus, said implications in the audit and in news articles of an "inappropriate relationship" between EMSA and Paramedics Plus were not fair.
Schwartz said the company has done nothing illegal and has an "independent financial review done each year" to ensure compliance with all laws and requirements.
