Both cities applied for services with the state last year, but aborted their effort because of a paperwork glitch.

The cities failed to turn over paperwork as required as part of the process mandated by the Kentucky Cabinet for Health Services prior to a November hearing date.

As a result, each dropped their applications for certificates of need, which are necessary for starting a service.

On Tuesday, officials in both cities said they plan to continue the fight.

``We plan on going forward with it," Grayson Fire Chief Greg Felty said.

Fire departments in each city say they want their own services to supplement the work of the Carter County Emergency Ambulance Service.

They claim the service is inadequate.

Grayson alone claims to respond to 150 to 200 calls per year for which it delivers medical care to patients before an ambulance crew arrives.

Grayson Mayor George Waggoner III said the city simply wants to get reimbursed for the work it does.

But Gary Stevens, administrator of the existing ambulance service, has argued that the county simply needs to beef up the service it already has, rather than look at adding crews in Grayson and Olive Hill.

He has been outspoken and staunch in his opposition.

The relationship between Stevens and the fire departments was blamed, at least in part, by the county ambulance board in its recent announcement that Stevens was being fired.

A new administrator has not yet been hired.

Both Waggoner and Olive Hill Fire Chief Rod Stephens said they want to meet with the new administrator and the county board to see if an operating agreement can be reached.

Waggoner said his city is considering a scaled back approach to its application, asking instead for a limited license.

Such a license would allow the city to get reimbursed for responding to calls, but wouldn't place it in direct competition with the Carter ambulance service.

Both cities plan to submit applications this summer.

On its most recent applications, Olive Hill estimated it could generate $337,500 in revenue from a service of its own, while Grayson predicted revenue of more than $400,000.

Felty said the applications have nothing to do with money, but more with saving lives.