Committee backs joint Wauwatosa–West Allis fire department; approves $1M-per-city equity plan and moves contracts to council

The Wauwatosa Government Affairs Committee voted unanimously to recommend that the Common Council approve an intergovernmental agreement with West Allis to establish a Joint Fire Department, a step that staff said would stabilize budgets and position both cities to apply for a state innovation grant.

City Administrator Archambault introduced the item and turned the presentation over to Melissa Weiss and Finance Director John Ugini, who said cross-jurisdictional work teams (fire, EMS, HR, legal, finance, facilities, IT and communications) have been meeting since December and will continue through January 2027. "We are looking for action on the contracts, which would then be forthcoming through to the Common Council meeting on February 24," Weiss said, noting the March 31 innovation grant application deadline.

The agreement includes a $1,000,000 equity contribution from each municipality (a $2,000,000 pool) intended as a startup cash cushion so the Joint Fire Department can meet early operating obligations without forcing either city to front the entire amount at once. Finance Director John Ugini said buildings will remain city-owned and existing city-purchased vehicles will remain city property; future vehicles purchased by the Joint Fire Department will be owned by the new entity. He said Wauwatosa would provide accounting services through its financial system while the joint department would have a separate federal tax ID and separate bank account, and staff are about "75% confident" the current financial system can be configured to route joint-department transactions correctly.

Several alder members pressed staff on exit rules, termination mechanics and the 10-year initial term tied to the equity contribution. Staff said that during the initial 10-year term the equity funds would remain with the corporation and could be returned later by majority vote of the governing body if the department's working capital permits; if one city terminates while contributions remain, the terminating city would receive 50% of its original payment and the non-terminating city the remaining 50% unless the governing body votes otherwise. An alder raised concern that the 10-year term creates an incentive problem; staff agreed to clarify termination and return-language with legal counsel before council.

The packet and discussion also covered insurance (the cities will retain property insurance for city-owned buildings while the Joint Fire Department will maintain its own general liability and auto-physical-damage policies through Cities and Villages Mutual Insurance), dispatch options and timing, and governance. Chief Kadrich described ongoing employee listening sessions and said union leadership has met with both chiefs; she said a McMahon Group dispatch study is underway and that Wauwatosa is planning a separate digital upgrade for the city's dispatch center in 2026 regardless of the merger. "We wouldn't lose a level of service," she said when asked about dispatch continuity.

Staff emphasized next steps: committee recommendation tonight, council consideration on Feb. 24 in both Wauwatosa and West Allis (same night), appointments to the governing board and fire commission in April, expected dispatch study recommendations in spring, and an HR-led search to hire a chief for the joint department. The committee approved the recommendation pending the clarifications discussed, and the Chair said the measure will be sent to council in two weeks.

The committee took no public comments specific to this item during the meeting.

What was decided: the committee recommended approval of the intergovernmental agreement and related contracts, with staff directed to clarify governance/termination language and other edits prior to the Feb. 24 council meetings.

What happens next: the Common Councils of Wauwatosa and West Allis will consider final approval on Feb. 24; staff will continue to refine contract language and prepare the joint innovation grant application due March 31.