Working with an interim arrangement since the dismissal of Andrew McGuire and the firm of Gust Rosenfeld last fall, the Town Council discussed the future of its legal services during its annual planning retreat on Thursday, Feb. 8.

Administrative Services Director Dave Trimble prepared an analysis for the council that focuses on a comparison between in-house legal staff and contracted/outsourced services. Besides costs, Trimble also offered pros and cons inherent with either model. Since incorporation the town has always used contracted services.

Trimble used data from the Arizona League of Cities and Towns, various municipal websites and clerks’ offices to compile information to use in a cost comparison.

He said most communities of similar size to Fountain Hills that use in-house legal staff use approximately three full-time staff. That includes an attorney, paralegal and executive assistant/legal secretary. He used estimated minimum, midpoint and maximum salaries for each position. He concluded first year salaries for legal staff would range from approximately $215,178 to $305,553. Additional benefits expenses could range from $64,000 to $76,000.

One-time expenses to establish the legal office such as computers, office equipment, etc. would be about $9,000 for the three positions, according to Trimble.

Ongoing staff expenses including Arizona Bar membership, continuing education, conferences and additional office expenses are expected to run about $8,000 per year. Maintaining Arizona Revised Statutes and online subscription to legal websites would total about $10,000.

The ongoing expenses for in-house legal staffing, without the one-time setup, can be expected to range between $300,000 to $400,000 per year, Trimble reported.

He said contracted outside legal assistance for specialized services such as litigation, bond counsel and water, zoning or land use advice may cost another $100,000. This brings the total estimated range for in-house legal services to approximately $375,000 to $500,000.

Trimble provided the estimate for contracted legal services based on the past six years with Gust Rosenfled. The six-year average came to $308,230. The highest amount is the 2018 fiscal year when the services were split with Gust Rosenfeld and Dickinson Wright on an interim basis. That estimate is $393,702.

In 2015 legal services costs were $374,657, which included $71,299 for contracted bond counsel services.

Trimble listed two dozen civil legal service functions as examples, including basic municipal drafting of ordinances and resolutions, election law, human resource issues, interaction with state and federal agencies, commissions and contracts.

The basic advantages of an in-house attorney include improved access, particularly for routine matters, faster turnaround for opinions and opportunity for face-to-face communication. However, Trimble noted costs can escalate depending on needs for specialized assistance and staffing. There are also no backups for downtime including vacations, leave, etc.

With an outside contract there is easier access to a variety of specialized help, you only pay for services used and qualified staff is always available. On the downside, turnaround time is slower and communication process is limited and more deliberate.

Town Manager Grady Miller told the council he has no concerns working with either model. He said he finds the current system the town uses with a contracted firm using and embedded attorney to be the best option he has worked with.

Miller said he is also concerned about potential cost increases.

Miller said it is his intention to continue through the current fiscal year with the interim program. He said that will allow time to prepare RFPs or set up an interview process.