PENDER COUNTY — Representatives of Pender County and Pender EMS and Fire sat down Thursday to discuss a merger in the works. The meeting took place as outside counsel for EMS also sent a letter to the county regarding concerns on how it’s being handled.
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Attorney Timberly Southerland of Fox Rothschild — a law firm that specializes in mergers and acquisitions — sent a letter on behalf of Pender EMS and Fire to former county manager Michael Silverman on April 21. It states the county must pause from proceeding with the merger until representatives for both Pender EMS and Fire and the county formally meet to discuss contract requirements, bylaws, and legal requirements of delivering emergency medical and fire protection services. It also requested county staff stop requesting meetings with individual officers until a transition agreement is in place.
“We request that the County refrain from proceeding with any further steps or actions related to a merger and assumption of those services until a meeting can occur,” the letter indicates.
The merger was first initiated by commissioner Chair Randy Burton in February. A private nonprofit, Pender EMS and Fire, has contracted with the county for more than 20 years to provide its emergency services and fire protection. However, those services came under fire in October of 2024 after a contract dispute with volunteer Union Rescue Squad.
Burton has held firm that the merger aims to increase financial transparency, accountability, and improve EMS and Fire employee benefits. Commissioners officially voted 3-1 for the merger in a March 10 meeting; it’s set to go into effect by Dec. 31.
Last week, Burton took issue with Pender EMS and Fire hiring additional legal counsel, noting it likely comes from taxpayer subsidies, unless the attorney is employed pro-bono. Based on the latest tax filing for Pender EMS and Fire, the nonprofit received $20.2 million from commissioners to operate during fiscal year 2023-24.
The county is legally able to initiate the merger based on statutory authority granted by G.S. 153A to provide essential services like fire protection and emergency medical services within its jurisdiction. However the process of transitioning personnel, assets, and operations from Pender EMS and Fire to the county requires planning, legal navigation, and cooperation from both parties to ensure a legally sound transfer.
To support discussions between Pender EMS and Fire staff and county representatives, Southerland wrote “an experienced consultant and mediator will be required.” She recommended North Carolina Fire Chief Consulting — a consulting group specializing in helping local governments with emergency service solutions — to assist during a formal meeting with county and EMS and Fire representatives.
Port City Daily reached out to Pender EMS and Fire, Southerland and North Carolina Fire Chief Consulting but did not hear back from anyone by press; this will be updated upon response.
Southerland’s letter was addressed at the April 22 commissioners meeting by the county manager who confirmed he had not been in contact with Southerland or Fox Rothschild since receiving the letter the day before. (Silverman was fired by commissioners at the same meeting in what Commissioner Jimmy Tate said the decision was made to ensure strong leadership and experience in the county manager’s office, also expressing concern over the former manager’s handling of the EMS and Fire merger.)
“So they have two attorneys now with taxpayer funds,” Burton stated at the meeting. “I had no knowledge because I would have definitely not wanted to spend taxpayers money on an additional attorney.”
Pender EMS already hired attorneys Murchison and Murchison for general counsel on the merger process.
Burton and Springer explained there has been no discussion within the Pender EMS and Fire board of directors about employing additional counsel. The board now includes both commissioners, in addition to their colleague, Jerry Groves, and members of Pender EMS and Fire. At the April 22 commissioner meeting, Springer asked a fellow Pender EMS board member in the audience if he had received any information about the letter or knowledge of hiring a second attorney, to which the answer was no.
Ten days later, Burton and Springer said they were still in the dark about who specifically hired the attorney, how the attorney is being funded, and why Fox Rothschild was retained.
“I mean, there’s a lot of questions there,” Burton told PCD Wednesday. “Personally, I think it’s about trying to slow-walk the transition.”
The letter states that the EMS’ goal isn’t to “prevent or delay the merger,” rather find the “best path forward” and assure the right amount of time is properly allocated to such a “serious undertaking.”
By Friday, Burton said he didn’t think the intent was to pause the procedure after a meeting took place to clear up at least some confusion regarding the merger.
According to Burton, county staff – interim county manager Meg Blue and assistant county manager Sarah Fulton — met with Pender EMS and Fire leadership, including Chief Everett Baysden. Burton was not in attendance but said he was told by county staff that talks were “positive” and “progressive.”
Though Burton couldn’t provide details, he suggested PCD reach out to Blue; she didn’t respond by press.
On April 22, Pender County staff presented to commissioners an update formalizing the merger plan, to be presented to commissioners for review on June 1. The plan includes full cost breakdown, risks and mitigation, resource requirements, timelines, performance standards and objectives for each focus area. They want to facilitate focus groups with members of Pender EMS and Fire to help in these areas.
Southerland’s letter refers to the county’s attempts to organize focus groups as “inappropriate” and “must cease until a merger/transition agreement is reached.”
Commissioner Tate told Port City Daily this week he would like to see more data and a full cost breakdown for the merger before he formalizes his decision about the plan.
“I feel like I’m showing up to play baseball and I’m at the field without a bat to hit the ball with,” Tate analogized. “I have no good data.”
As part of the transition, commissioners initially sought to dissolve the board of directors entirely, but the county attorney advised against this, clarifying their authority extended only to replacing the appointments they had made to the board.
Springer said the EMS and Fire Board of Directors have met one time since the merger, on March 19, wherein they heard from members of the public about the merger, including Pender EMS and Fire employees.
At a May 5 meeting, the county commissioners are scheduled to review 16 applications for positions on the Pender EMS and Fire board. Made up of five people each representing a district — the same as it was before the board was dissolved in March. The applicant pool includes two people — Patricia Fields and James Taylor — that previously served on the board.
Commissioner Brad George also previously served but resigned amid conflict-of-interest accusations from former school board member Phil Cordiero. Cordiero filed complaints against George in December of last year, pointing to George’s wife acting as the nonprofit’s chief financial officer, while he served on the board.
Cordeiro argued George’s positions as commissioner and board member of a contracted private entity present a potential violation of G.S. 14-234 — which prohibits public officers from administering contracts that provide income to their spouses — as he voted for the 2024-2025 budget appropriating funds to his wife’s employer.
George voted against the merger in March; “This is theatrics,” George stated at the March meeting. He expressed concerns about the speed and lack of transparency with which the merger decision was made. He did not respond to PCD for a comment by press.
While Pender County continues to navigate the merger process, commissioners also unanimously approved a motion to subcontract Union Rescue Squad, effective on May 22.
Union Rescue Squad, a volunteer EMS group, have been in operation in Pender County since 1981. Since 2005, Union Rescue has operated under contract with Pender EMS and Fire providing night time EMS services. However, contract negotiations last October grew contentious after Pender EMS and Fire presented Union Rescue with a non-negotiable contract requiring them to respond to at least 60% of all EMS calls. Union said it didn’t have the capacity to do so and for three months there was radio-silence between the rescue and Pender EMS. Then in January Pender EMS threatened to terminate the contract and shut down Union.
According to previous PCD reporting, Pender EMS paid Union $90,000 from tax revenue annually, in quarterly increments, and a new contract proposed raising it to $100,000. Outside of the funding from Pender EMS, Union Rescue operates primarily through contributions.
The new contract noted the relationship between the two rescue organizations had been “deteriorating” over the years.
Numerous residents at the time spoke out, elaborating how important Union was to the northwestern region of the county, fearing its closure. Some suggested commissioners step in, which happened just shy of two months later.
Burton, a former first responder and battalion chief, said earlier this year, according to previous Port City Daily reporting, commissioners tried to remain neutral but he was prepared to utilize all the tools available to square up the situation.
At last week’s commissioner meeting, a motion to subcontract Union Rescue under the county was also initiated by Tate. It states Union Rescue would provide services under the county’s oversight to the Union district, which includes Willard, Watha, Penderlea and Maple Hill. Union Rescue Squad Chief Diane Giddeons said at the meeting the rescue plans on continuing to provide mutual aid emergency services as needed to other areas of the county.
Tate and County Attorney Trey Thurman assured commissioners a subcontracting agreement with Union would not affect the Pender EMS merger.
“If everyone works together cooperatively and lets egos go, and look at the citizens that need the services, I think it will work very well without interfering with each other,” Tate told PCD. “I think that both parties have to be willing to come together and make sure that the citizens are our number one priority.”
Tate requested the tax office provide commissioners with an analysis of EMS tax revenue collected from the Union district, advocating for Union Rescue to receive its fair share of those funds. EMS tax revenue is currently distributed each year to Pender EMS who give a share to Union Rescue.
“Not asking for no more or no less,” Tate told PCD. “Just give Union their tax base so they will be successful.”
Port City Daily reached out to Union Rescue Squad for comment on the subcontracting agreement, but a response was not received by press.
