The Town Council learned during a study session on Aug. 22 that there is no emergency related to the Town’s fire and medical services contract with Rural/Metro Corp.

Craig Haigh, senior consultant with McGrath Consulting Group, Inc. 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.

“Usually when we get called there is a disaster or impending situation,” Haigh told the council. “That is not what is happening here, this is proactive and there are no immediate issues.”

The Town Council hired McGrath in early November 2021 with a goal of determining whether it is best for the Town to maintain its contract with Rural/Metro or seek other options to provide the services. Options could include an intergovernmental agreement with another municipal agency or establish an in-house Fountain Hills Fire Department. Haigh presented recommendations based on considering these options.

The report states, “should the Town continue using contractual services, it is strongly recommended that a contingency plan be developed for the possibility that Rural/Metro might exercise its right to end their contractual obligations relationship.”

The current contract with Rural/Metro requires two-years notice from the company before terminating the agreement.

Haigh said during discussions with Rural/Metro officials while conducting the study there was never any suggestion that the company was considering ending the agreement.

Haigh said the Town should have a contingency plan in place within 12 months. It was reported that the Town has an existing contingency plan, which may need review and update.

It was also recommended that should the Town chose 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 are used under the current Rural/Metro contract.

Fountain Hills Rural/Metro does have mutual aid agreements which do have a slightly delayed response from the regional automatic system. Those partners are other Rural/Metro stations in the vicinity, Rio Verde Fire District and Fort McDowell Yavapai Nation Fire Department.

It was also noted that the City of Scottsdale Fire Department will no longer respond to mutual aid requests from Rural/Metro.

“A consultant knowledgeable in the Regional Automatic Aid System (should) be hired to help the Town prepare its application and assist with plan implementation,” the recommendation states.

McGrath is also recommending that should the Town move to establish a municipal fire department it should include separate human resources positions and information technology. Also, it recommends that with a Town fire department employees should be enrolled in the Arizona Public Safety Personnel Retirement System.

“Participation in this system will be important related to recruitment and retention of fire personnel,” the report states.

Costs outline

McGrath did provide a cost comparison for status quo plus four options discussed in general. It was noted that the comparison numbers may already be somewhat outdated.

Based on a fiscal year 2023-2024 budget the status quo with Rural/Metro would be $4,319,679 (this is a firm number based on the existing contract).

Option #1, to create a Town-operated fire department with current staffing level, is estimated at $5,373,365 (+$1,053,686).

Option #2, creating a Town-operated fire department adding NFPA staffing levels to qualify for the automatic aid system, is estimated at $6,028,326 (+1,708647).

Option #3 would be an intergovernmental agreement with the City of Scottsdale for personnel only. That estimate is $6,007,467 (+$1687,788).

Option #4 would be an IGA to merge with Scottsdale Fire Department at an estimated cost of $5,530,582 (+$1,210,903).

These are not exclusive options, there may be other services available that the Town could research further.

Councilman Mike Scharnow asked that other than a rare, odd incident that might require additional specialized resources, how do the current services rate?

Haigh said the Town gets pretty good service right now. He said they do not meet the NFPA standards, but those are not requirements.

“This is not an emergency situation,” Haigh said. “You can take your time to look at the situation.

“It is very wise to be proactive, you have two years to make a transition.”

The council gave no staff direction following the study session.