The Town Council has voted unanimously to discontinue its contract for fire suppression and emergency medical services with Rural/Metro Corporation.

The council instructions call for staff to bring back a transition plan for the change to the in-house department and implement it as of Jan. 1, 2024. The contract allows the Town 18 months’ notice to the company, which will remain in place, with the extra time used as a buffer for unforeseen issues in making the transition, according to Town Manager Grady Miller.

The Town has maintained its contract with the company continuously since incorporation in 1989. Prior to that Rural/Metro was under contract with the Fire District dating back to the ‘70s. From the beginning of development, McCulloch Properties used Rural/Metro for security and the occasional fire suppression as the community developed.

Miller said Rural/Metro has been cooperating with the Town in the process and assisted the consultant doing the study for the Town. Rural/Metro’s Central Arizona Fire Chief Tom Soule attended the meeting and spoke to the council.

“Rural/Metro has had a long relationship with Fountain Hills, and I want to express my support for the decision you make,” Soule said. “We will make the transition seamless to ensure public safety is not impacted.”

Soule said he believes the consultant, McGrath Consulting Group, did an excellent job for the Town. He said he does not want the council to be making the decision out of fear.

“I assure you that Rural/Metro has no inclination to leave the fire service,” Soule said. “I do believe that government is the proper place for fire suppression.”

He added that Rural/Metro is willing to upgrade the contract if the Town were to ask for compliance with NFPA standards to allow the Town to participate in the Valley-wide automatic aid program.

“We can provide for four-person engines if you desire,” Soule said. “That will meet the manpower standard, but not the response time standard.

“Most departments in the country can’t meet that standard. We are very fortunate in the Valley to have the automatic aid system.

“You would probably be providing automatic aid to others more than you would be receiving it.”

Soule also asked that the Town give appropriate consideration to the personnel working in Fountain Hills – many are residents with many years working here.

“I do think they deserve to complete their careers here,” he said. “Take care of them as they have taken care of you.”

Councilman Gerry Friedel asked Miller if the transition could be completed in 12 months.

This is essentially a personnel transition with no property or equipment to consider, it is already all owned by the Town.

Miller said the one-year goal is better to aim for rather than stretching the process out.

The transition package will be developed as part of the budget process, according to Miller.

Comparing costs based on Finance Director David Pock’s outline presented to the council for the fiscal year 2023-2024 budget the status quo with Rural/Metro would be $4,534,919.

To create a Town-operated fire department with current staffing level, is estimated at $5,658,328 (+$1,123,409). The difference between the contract and in-house is reduced in subsequent fiscal years through FY33.

Controversy

Councilwoman-elect Brenda Kalivianakis spoke during the hearing and asked the council to table the decision and allow the next council sworn-in December to make the decision.

She said the City of Scottsdale is feeling negative effects related to costs and liability after taking over the fire department.

“This is a big decision and unusual for a lame-duck council to make,” Kalivianakis said. “Let’s learn from other’s mistakes.”

Mayor Ginny Dickey clarified that the City of Scottsdale did not make the decision to discontinue Rural/Metro. She said it was being put to a vote to retain, when Rural/Metro pulled out.

“This is a decision very appropriate for this council to make,” Dickey said.

Rural/Metro pulled out of Scottsdale in 2003.

It should be noted that four of the council members who voted for the local fire department will remain in office for another two years.

Councilman David Spelich said he took offense to Kalivianakis’ comments.

“I do not consider myself a lame duck and I take offense to that remark,” Spelich said. “We have researched this very carefully, and the next council will not bring any more expertise to the table.

“You did not appear to speak at previous meetings where this was discussed. Your turn will come as of December, then you can make decisions.”

Vice Mayor Peggy McMahon also expressed her offense to the remarks.

“You were rude and disrespectful to this council,” McMahon said. “You have never once made comment on this issue.”

Spelich’s term does expire in December, McMahon’s term continues for two more years.

Kalivianakis followed up with an email to The Times.

“Last night was the crowning achievement of poor etiquette. Both David and Peggy did not engage me on the merits of my argument but revisited my stance on Park Place, said I talked down to them and in Peggy's case that I have never said a good thing about Fountain Hills. That’s not true,” Kalivianakis said. “If you don't validate the positions of the Town Council you have to suffer the backlash of thin-skinned politicians. It’s embarrassing and should be called out.”