A motion authorizing Oxford Township to pay 100 percent to fix all the problems in the Elk View Estates subdivision is still in place, however, officials are seeking an opinion letter from their attorney to find out how they can legally spend tax money to do this.
‘Whatever we do, we have to have something in place that allows us to spend this money, one way or another,? said Supervisor Bill Dunn. ‘I’m not an attorney. I don’t want to misuse public funds.?
Not everybody agreed an attorney opinion is necessary.
‘I think we’ve had numerous attorney opinions on what can be spent where. I can’t see dragging this on any further,? said Trustee Sue Bellairs. ‘I think this board just has to make a decision, period. I think we can spend it.?
At issue is the question of exactly how the township can legally spend public tax dollars, an estimated $324,000, to bring the subdivision’s roads up to public standards and fix all the surface water drainage problems in Elk View Estates, located east of Baldwin Rd. and south of Hummer Lake Rd.
The whole situation was primarily caused by Elk View developer Scott Constable, who allegedly didn’t follow the rules, and compounded by mistakes made by the township building department and Oakland County. Constable has since declared bankruptcy and left the state.
Township officials voted 4-2 at their July 15 meeting to pay for the entire fix at Elk View. The engineering design work for the project is almost done.
Dunn, who was absent from the July 15 meeting due to a health issue, later raised the issue that this was a misappropriation of funds, even though the township board back in April had voted to spend $148,000 on the fix.
A June 17 e-mail from township attorney Gary Rentrop to Dunn stated, ‘Once township monies are paid to do physical corrections of the problems at Elk View, this likely would be considered the expenditure of public monies for private purposes.?
All of the subdivision’s surface water drainage problems are located on and affect private property. As for the roads, even though they would be brought up to public standards with this fix and dedicated as public roads, right now, they’re still technically private property and there’s no state statute authorizing such as expenditure of tax dollars.
‘There are statutes that allow the township to spend money on public roads, but I am not aware of authorization to spend money on private roads. Right now, at best it’s a private road,? said Rentrop back in August.
Expenditures of public funds for private use could get the township in legal trouble with either the State of Michigan or with local taxpayers should a resident decide to sue the municipality for misuse of funds.
Dunn noted township board members could be held personally liable for the expenditure. ‘That kind of concerns me.?
Trustee Joe Bunting said he stands by the township’s original motion to pay 100 percent for the fix, however, he wants to make sure it’s done the proper, legal way.
One way the township could legally expend monies on Elk View would be if the payment were part of settling a lawsuit filed by property owners against the municipality.
It was brought up during the meeting that Rentrop had previously suggested Elk View residents file a ‘friendly lawsuit? against the township.
Rather than fight the suit in court, the township would simply settle it with a consent judgment approved by both parties and signed by a judge.
This consent judgment would call for the municipality to pay for the entire fix and outline all the other legal details that need to be taken care of such as obtaining easements and getting Elk View residents to absolve the township of any further liability.
But not everybody liked the idea of a friendly lawsuit. ‘I am totally opposed to a friendly lawsuit,? said Bellairs, noting the suit filed in July 2003 between the township and village over control and ownership of the fire department was supposed to be a friendly one and it’s still going on in arbitration.
The township is expected to revisit the Elk View issue once it receives Rentrop’s opinion.