**THIS DOCUMENT WAS EDITED AS FOLLOWS FOR EASE OF READING: ALL SIGNATURE ENHANCEMENTS, CONFIDENTIALITY PARAGRAPHS, AND EXCESS PAGE RETURNS WERE DELETED. EVERYTHING ELSE IS ORIGINAL. CHESTNUT RUN NORTH HOA BOARD**

From: Jeffrey Paulsen

Sent: Monday, January 08, 2018 10:51 PM

To: '' <>; '' <>; '' <>; '' <

Cc: 'Tony Bongiovanni' <>; Mom <

Subject: FW: Roads Information

Lisa and the HOA Board,

Thank you for the work all of you have done on behalf our neighborhood. I understand that serving on the Board can be a “thank-less” job at times and the willingness of the HOA Board to volunteer their time is much appreciated. Thanks also for sending the summary of the December meeting and draft petition. While helpful, as you could expect, there are still many open questions in my mind and perhaps many other homeowners minds as well.

At this time I am unsure as to whether I will support the petition and I want to make an informed decision. I do not want my comments below to be viewed as trying to sway neighbors to either support or reject the current proposal, so I am sending this to all of you directly. If you believe that other neighbors may have the same or similar questions or that the questions and answers received are important, please feel free to share my comments and questions with everyone in the neighborhood. I did have an opportunity to meet and discuss the proposal with neighbor Tony Bongiovanni and his questions were similar to mine, so I am copying Tony to this correspondence.

First as to process:

1I understand that the re-paving project is subject to and under the procedures established by the Road Commission of Oakland County (RCOC) for creating a Special Assessment District (SAD). I located a copy of the 15 step SAD procedure on the website. The form is located at: As I understand the process and petition, if 51% of the neighbors sign the petition (step #4) then the re-paving project proceeds based on the preliminary quote of $30,718.60 per household. While there are two potential available scheduled meetings (in April-step # 7 and in July- step # 12) to ask questions and talk about the project, the only method to stop the petition once approved is if an opposing petition is circulated before the bid process at step #10 (and I am assuming 51% of the neighbors would need to sign that opposing petition for it to be acted upon by the Township and County?) The Board will then hold a hearing (step # 9) and I am assuming that the project will be stopped based on an opposing petition. Are my assumptions correct?

2If there is no opposing petition (or if 51% of the neighbors do not sign an opposing petition), then the project moves forward.

3At step #10, the RCOC solicits bids and obtains the final $$ apportionment number.

4If the apportionment amount is 10% or less above the $30,718.60 quote (or $3,071.86), then the project will go forward and the cost per neighbor will be adjusted upward by the revised apportionment amount (up to $33,790.46). Is that correct? If the additional apportionment is over 10% above the quote, then the RCOC will conduct the meeting in July-step #12. Is that correct?

5Has a revised apportionment amount ever been less than the preliminary quote? If yes, perhaps the RCOC can provide information on those circumstances. If there is an average increase in the apportionment amount after the preliminary quote? This information from the RCOC would also be helpful.

6Step #13 is that the RCOC votes on whether to proceed. There is no reference in the process to the neighbors getting another vote, even though the cost per household could be greater than 10% above the preliminary quote, or more than $33,790.46. There is also no cap on the % increase that could be assessed. In this circumstance, if the RCOC approves, then the project proceeds irrespective of the final apportionment amount. Is that correct?

7From the language of the petition, it is clear that the homeowners cannot rely on the preliminary estimate of costs, timing, apportionment assessments or otherwise, or consider these estimates to be accurate.

Second as to timing:

1If the project is approved, the final apportionment amount will be assessed in July. This is the same month of the second hearing if necessary (step #12). As noted above, in accordance with the printed RCOC process, the apportionment amount will be as determined by the RCOC without any further right of the neighborhood to approve of the final amount. Is that correct?

2Assuming the project is approved, then the earliest the re-paving would start is late August (although there is no guarantee that the project will proceed in August or in 2018) and it anticipated to take about 3 months (to the end of November) if the project starts in late August. Is that correct?

3Is the final apportionment amount assessed even if the project is not started and completed in 2018?

4As we all know, it often snows in mid to late November. Will the RCOC complete the project if it snows or carry over the project into December and the winter if not completed, or will it stop and then pick up the project again in the Spring of 2019? An understanding of timing contingencies, process contingencies and road condition contingencies in this event from RCOC would be helpful.

5Answers about the weather impact on the curing of the road surface in the late fall and the warranties provided on the work performed from the RCOC would also be helpful.

Third as to the preliminary cost estimate:

1The total construction cost estimate is $2,190,652.50. Is there a breakdown of this total between materials and labor, or other details that can be provided by the RCOC to show how this estimate was calculated? Obtaining this information would be helpful.

2There is a 10% added cost ($219,065.25) for RCOC Engineering. Is that estimate based on past history?

3There is a 10% added cost ($219,065.25) for construction contingencies. Is that estimate based on past history? Are $$ refunded to the homeowners if the contingency costs are lower than 10% or does the RCOC or the contractors keep that amount?

4There is a 5% added cost ($131,439.15) for an RCOC inflation factor. Is that based on the anticipated increase in materials and labor from the contractors? Are $$ refunded to the homeowners if the inflation factor is not needed or does the RCOC or the contractors keep that amount?

5There is a 3.5% to 4% added cost ($96,607.78) for Twp. Legal and Financial costs. Is that estimate based on past history? Are $$ refunded to the homeowners if the out of pocket Twp. Legal and Financial costs are lower than that amount or does the Township keep that amount?

Obtaining answers to these questions from the RCOC and Township would be appreciated and will help me (and perhaps others) in their decision making process. Thanks.

Best Regards,

Jeff

From: Diane Paulsen [mailto:

Sent: Friday, December 22, 2017 6:20 PM

To: Jeffrey Paulsen <

Subject:Fwd: Roads Information

Sent from my iPhone

Begin forwarded message:

From: Chestnut Run North HOA <

Date: December 22, 2017 at 5:05:36 PM EST

To:

Subject:Roads Information

Hello Chestnut Run North Homeowners, Happy Holidays, and safe travels to those of you who are traveling this time of year. On Monday we had a meeting to discuss our road improvement project and we were delighted to see many homeowners. It was a lively discussion with Mark from the Oakland County Road Commission (OCRC) and Olivia and Tom from Bloomfield Township. We know everyone can appreciate how busy this week is, so the HOA Board has not had time to pull together a full information sheet for the website. However, below is a summary to get information into everyone’s hands. We hope you will read the entire summary and we would love to hear your comments. First, the cost to rebuild our roads is $30,718.60 per house. We have 97 homes in our subdivisions, however, the four homes on Hickory Grove are excluded from this assessment and do not have a vote going forward (per the Township as they do not have driveways on any of the affected roads). The OCRC took core samples of our roads in multiple locations and created a cost estimate based on their engineering analysis. In summary, the roads have drainage issues that over time have destroyed not only the surface but also the base of the roads. The clay underneath our roads has trapped water over the past 30 years and ruined the integrity. The proposed project includes ripping out the entire road plus curbs, installing a new road bed that is mixed with concrete to help with drainage issues, new curbs that will include an additional drainage line cut into the curbs to help with overflow/irrigation run-off/etc. and will direct that excess water to a “channel” about four feet below ground and will lead directly to the storm drains. So, what does this all mean and what are the next steps? Let’s assume that residents approve the price petition by February, there is a strong chance we can have the roads started in late August. This would be a huge undertaking in a short time, but for the sake of this example, bear with us. Bloomfield Township would then assess every house in the neighborhood on the July tax bill for the full amount. You may pay it in full at that time. If you choose to finance it through the Township, it is a 15-year term and payable once a year with your December bill. The rate is 1% over the bond rate (BT quoted a current finance are of 4.5%). One resident ran the numbers and estimated at a 5% rate, it is just under $3k per year. However, you can also finance it initially and pay it off whenever without penalty. The assessment is on the tax bill, and with the change in law two years ago, it can be “passed” with the house to the next owner. However, Sarah Cameron, a neighbor who is a realtor, said her experience is sometimes the title/mortgage companies do not let you pass it on and want it paid off when you sell your home. If you are thinking of selling, we recommend discussing this with your realtor/mortgage company for further clarification. The price per house is a big number, without a doubt. However, this is the closest any board has come to getting the roads re-done. If we don’t do the roads, they will continue to deteriorate, with minimal repair from the Township, and the cost to replace the roads will only increase each year. Also, and we heard this from several neighbors, that our road condition was a huge issue when they were buying. New neighbors have mentioned negotiating the potential price of the road revision into their offers while others cited the roads as a reason for a lower offer on a house. Going forward, the HOA Board believes there are three options for our roads:

1. Do nothing. The Township is responsible for 213 miles of roads, of which we have 2 miles. They will continue to periodically patch our roads but will not fix the current drainage issues nor will they do widespread paving.

2. Mill & Fill (Maintenance Overlay). If we want to grind down the top portion of our roads and re-pave the surface, the neighborhood is responsible for collecting the money and the Township will oversee the work. This requires the HOA to hire an engineer, develop plans, apply for permits, and coordinate the work. In addition, we must collect the cost of the project upfront from all the homeowners. The Township estimates this option will cost $15-18k, and the overlay will only work for about five years because we are not fixing the drainage issue. Likewise, if the milling encounters the deteriorating roadbed, the project will automatically be rolled into a complete road repair, at homeowner cost, by the Township. The current HOA Board declines to take on this task.

3. Fix the roads. This will allow our neighborhood to retain its family friendly identity by allowing our kids to again rollerblade and bike safely, and our residents to walk through the neighborhood without fear of turning an ankle on loose gravel or uneven road surfaces.

We hope everyone will give this topic some careful thought. Attached is a DRAFT petition from Bloomfield Township and it contains additional information. Not least of which is that this next phase requires BOTH spouses to sign, regardless of who is on the title. There is also information for those who may have their homes in trust. The official petition will be ready the week of January 8th and we plan to collect signatures shortly thereafter. If you are able to help collect signatures from your neighbors, we could really use the help, please contact us. Thank you for your attention and time. Happy holidays, and we look forward to gathering signatures in 2018! The Chestnut Run North HOA Lisa Najor-President Sara Bicos-Vice President Luska German-Treasurer Shannon Klapp-Secretary

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From: Jeffrey Paulsen‬

Date: Thu, Jan 11, 2018 at 10:33 AM

To: "" <>, "" <>, "" <>, "" <

Cc: Tony >, Mom <

Resending as Tony advised my message was encrypted and not readable. Hopefully, this will transmit correctly this time.

Jeff

From: Jeffrey Paulsen

Sent: Monday, January 08, 2018 10:55 PM

To: '' <>; '' <>; '' <>; '' <> Cc: 'Tony Bongiovanni' <>; 'Mom' <> Subject: RE: Roads Information

------

From: Lisa Najor‬

Date: Fri, Jan 12, 2018 at 9:08 AM

To: Jeffrey Paulsen <

Cc: "" <>, "" <>, "" <>, Tony >, Mom <

Hi Jeff,

I hope all is well with you! Yes I was wondering why I couldn't read anything in your email!!

I have sent most of your questions to the Bloomfield Township Engineer, Olivia Olsztyn-Budry, who is our liaison on this project. She will need to confer with with the RCOC to confirm some answers for you, I would, as always, want to be as accurate as possible.

First, to clarify, you are referencing the RCOC process which falls under a different public act than the process with the Township. By going with the Township we follow public act 188. There are some differences between PA 188 that the Township falls under and the PA 354 which the RCOC falls under for road special assessment districts. The Township information can be found via this link:

Services/EES/Engineering/SpecialAssessmentDistricts.asp

Also, with regard to dates... It doesn't seem that there will be enough signatures on the petition to begin construction in August of 2018. For that to happen the petitions would need to be turned in by the end of this month and I only picked them up yesterday. Those dates were to be used as a possible time frame, as one resident asked how soon construction could begin, or if there was a 2 year back log of projects.

There is no opposing petition so to speak. If a homeowner does not wish to participate in the Road Improvement Project, they simply will not sign the petition.

To have a valid petition sent to the township for approval we need to have 50+% (or 51%) of the homeowners along with 50+% of the abutting frontage, both criteria need to be met.

I will send you the answers to your other questions as soon as I hear back from the Township.

Thanks,

Lisa Najor

Chestnut Run North

HOA- President

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From: Jeffrey Paulsen‬

Date: Sat, Jan 13, 2018 at 12:46 PM

To: Lisa

Cc: "" <>, "" <>, "" <>, Tony >, Mom <

Hi Lisa,

Thanks for the reply. Sorry for the illegible communication-I’m not sure what happened there?

Thanks for the link to the correct process (the Township SAD Process) we are following. I have read the Township SAD process which is similar to the County SAD process, so my comments and questions are still the same (except for the step numbering system used by the County). The Township SAD process raises a few other question in my mind-Are there advantages or disadvantages (process-wise, financial or otherwise) to follow the Township process as opposed to the County process? Does the Township apply another government level set of administrative expenses on top of the County administrative charges? Can the homeowners obtain competitive quotes related to the road construction materials and labor costs to supplement the bid process?

Looking forward to the Township’s reply to the questions. Thanks.

Stay warm!

Jeff

From: Lisa Najor [mailto:

Sent: Friday, January 12, 2018 9:09 AM

To: Jeffrey Paulsen <

Cc:; ; ; Tony >; Mom <

Subject: Re: Roads Information

------

From: Lisa Najor‬

Date: Wed, Jan 17, 2018 at 3:49 PM

To: Jeffrey Paulsen <

Cc: "" <>, "" <>, "" <>, Tony >, Mom <

Hi Jeff, I just checked in with the Township- responses to your questions should be coming in by tomorrow.

As to why we are following through with the Township process, as opposed to that of the County...,

1. As spoken about during the meeting- Leo Savoie changed the legislation which allows homeowners in Bloomfield Township to transfer the SAD debt with their home upon a sale. So the debt belongs to the home, as opposed to belonging to the homeowner.