In November 2022 the Town Council voted to take the fire department under its control and create a municipal fire department – ending a half-century relationship the community has had with Rural/Metro Corporation.

Earlier in the year the council made the decision to hire two separate consulting firms to review the Town’s contract agreements with Rural/Metro as well as the Maricopa County Sheriff’s Office to determine the best long-term path forward to provide public safety services for the Town of Fountain Hills.

The council decided that the municipal fire department was a plan that’s time had come. However, the decision was made to maintain a contract with MCSO for law enforcement with discussion for significant revisions to the agreement.

The council instructed staff to bring back a transition plan for the change to an in-house department to be implemented as of Jan. 1, 2024. The existing 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.

McGrath Consulting did the research for the Town related to fire service. Craig Haigh, senior consultant with McGrath told the council the Town is receiving excellent, professional services from Rural/Metro. However, he did point out a couple of vulnerabilities to be aware of in planning for the future.

Haigh told the council that should the Town choose to create and operate a municipal fire department a primary goal should be compliance with National Fire Protection Association (NFPA) standards that would allow it to join the Regional Automatic Aid System. Haigh said the automatic aid system in the Valley is a capstone program modeled nationwide. The system requires additional equipment manning requirements than those used under the current Rural/Metro contract.

He also recommended the Town include separate human resources positions and information technology for fire services. Also, it recommends that with a Town fire department employees should be enrolled in the Arizona Public Safety Personnel Retirement System.

The current contract with Rural/Metro is for personnel only. The Town owns the existing equipment and facilities.

Town Finance Director David Pock outlined a proposal for the fiscal year 2023-2024 budget with the status quo Rural/Metro contract at $4,534,919.

The option 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.

Law enforcement

Greg Mathews with Matrix Consulting Group, hired last spring to evaluate law enforcement services for the Town, told the council in November that start-up costs for a local police department would be too expensive for the near-term. He also said that a restructured agreement with the Sheriff’s Office could save the Town $200,000 a year.

Mathews noted that in-house operations for a police department would actually be less, as much as $500,000 per year. However, he said the start-up expenses for a new department are estimated at $4.3 million. That translates to a nine-year break-even over the existing contract, or 14 years to get a return against the proposed revisions to the agreement.

The consultant also had some manpower recommendations to be discussed in negotiating a new agreement. It was also suggested, and Miller said he would support, a citizen’s committee to work on law enforcement contract revisions. It was noted that Fountain Hills has a number of career law enforcement officials retired here who might be willing to offer their expertise to discussions.

The two public safety contracts represent more than 50% of the Town’s operating budget and officials have had an eye toward clarifying the contract vs. in-house operating costs to help make decisions going forward.