Frequently Asked Questions (FAQs) about Bloomfield Village Roads - 4/2013 1. Why should Bloomfield Village (BV) roads be replaced? BV roads have not been replaced since the early 1960s and are 25 years past their useful life; therefore, removal and replacement including catch basins, curbs, etc. is needed. 2. Who owns BV roads, and shouldn’t the owner be responsible for replacement? Oakland County owns the roads, but PA 51 and PA 188 are the legal bases for assigning neighborhood road replacement to neighborhood property owners. 3. Who is responsible for maintenance of BV roads? Bloomfield Township maintains BV roads under contract with Road Commission of Oakland County (RCOC). 4. Birmingham pays for the road repair and replacement so why can’t Bloomfield Township pay for removal and replacement of BV roads? Birmingham owns the neighborhood roads and its residents pay substantially higher taxes than do residents of Bloomfield Township. Many of Birmingham’s roads do not have curbs, catch basins, etc. 5. Is there a viable option between complete replacement and doing nothing other than maintenance? No. RCOC will only permit removal and replacement of roads owned by Oakland County at this time, largely because re-paving will be paid for by SAD, and the expected life of the improvement must be at least as long as the term of the special assessment (15 years). There are no paving options that would last much beyond 5 years. For example, at an estimated cost of $10 million (roughly 2/3 the cost of removal and replacement), mill and overlay (removal of the top few inches of pavement and re-surfacing) with base repair as needed was one of the alternatives considered. It was discovered, however, that this method has only a 5 - year life expectancy, so it could only be financed for 5 years, and all of the problems would still not be addressed. Furthermore, because it would have to be re-done every 5 years, over 15 years, it would end up costing at least 50% more than removal and replacement without addressing all of the problems Also, the RCOC must issue the permit for road work, and it will not issue a permit for anything other than removal and replacement at this time. 6. If BV had set up a sinking fund, couldn’t that have paid for road replacement? Sure, if there had been enough money contributed over a long enough period of time, but there wasn’t. Also, BV deed restrictions limit the amount of annual assessments. 7. Why can’t we set up a sinking fund for the BV road replacement project now? If allowed by BV deed restrictions, assuming today’s prices and interest rates, it would take a minimum of 15 years and probably longer to accumulate sufficient funds. Interest rates are low in 2013, but are expected to increase thereafter. Thus, rising material costs (projected 3% a year minimum) and rising interest rates will substantially increase the overall cost. 8. Why a Special Assessment District (SAD) rather than a tax? The Township program is for the establishment of individual neighborhood SADs rather than for a Township-wide millage increase that would require the approval of the majority of Township residents of a referendum increasing property taxes by 7 mills over 10 years. Two Township neighborhoods are already in the approval process for their respective SADs, and Bloomfield Village would be the third. Note that if such a referendum were to pass, the Township (not BV) would control the order in which the neighborhoods were done. So, BV residents could be waiting 7 or 8 years for their new roads. Interestingly, the average BV homeowner would pay almost exactly the same amount in additional tax as would be paid with a SAD. 9. If nearly all the Township roads are due for replacement, isn’t it likely that a referendum for 7-mill tax increase over 10 tears would pass? The Township has decided on a program for the establishment of individual neighborhood SADs rather than pursue a referendum on a millage increase. Passage of such a referendum would require approval by the majority of Township residents, the probability of which is questionable. 10. Why can’t the homeowners’ debt under the SAD “run with the property” so that it doesn’t have to be paid off at the time of sale? Currently, lending institutions subordinate their mortgages only to taxes. However, our Township officials and local legislators are working to have legislation passed by the Michigan Legislature that would allow these SAD debts for neighborhood roads to “run with the property”. The proposed legislation is also expected to contain a clause that would make it retroactive to apply to SADs already established. Legislative action is not expected for 6 - 9 months. 11. Shouldn’t we wait to see what the legislature does? Not really, because of the proposed retroactivity clause. Also, interest rates will be rising and material costs are expected to increase by 3% or more per year. With a 5-year delay, without including interest, a 3% annual increase inmaterial costs alone would add $2.7 million to the total cost. The deterioration of BV roads is accelerating rather than continuing at the same rate. 12. Why was Cranbrook Road replaced? Cranbrook Road was replaced because of a 1-time Tri Party (Oakland County, RCOC and Bloomfield Township) funding. Today, Tri-Party funding is reserved for only those roads where there are serious safety considerations. 13. Can Covington and/or Bradway qualify for Tri Party funding? No, Cranbrook is the only BV road that qualifies because it is a connector road. As a side note, Bradway and Covington only exist in Bloomfield Village, while Cranbrook continues both north and south of BV. 14. Why should every parcel be assessed the same amount rather than according to the amount of road frontage? A Village-wide approach to assessment was taken because it is expected that the appearance and property values in Bloomfield Village as a whole will improve with new roads, curbs, catch basins, etc., from which all Village residents will benefit. Despite the amount of frontage a BV resident may have or the condition of the particular road on which a resident lives, all residents use the roads. 15. What about application to The Funding Committee of the Oakland County Federal Aid Task Force for a contribution? There is no Federal funding for neighborhood roads, especially now with the state roads, bridges and infrastructure in serious disrepair. 16. Are there any other subdivisions in Bloomfield Township that are moving forward with Township Bond Proposal (Township Plan) to replace their roads? Yes. As of April 2013, Five subdivisions are in the process: Knob Hill petitions are fully approved, and construction is slated for 2013. Thorncrest has petitions signed and fully ratified and is in the process of the hearings of necessity and project construction to be completed this summer. Wabeek petitions are signed and fully ratified, and they are in the process of the hearings of necessity for a 2014 construction start. Hickory Heights has signed petitions and is in the process of ratifying the petitions for a 2014 construction start. Hickory Grove is in the process of completing petitions. For more information, please see www.bloomfieldvillage.net, and select road proposal OR contact Road Committee Chair Julie Fielder at j.m.fielder@comcast.net.