The Oxford Village Council voted unanimously Monday to let the township provide fire services to the village from Jan. 1, 2006 to Jan. 1, 2011, but it expects to be paid in full immediately for its share of equity in the department.
This decision comes as a result of Arbitrator William Hampton’s first award dated Nov. 23 in which he ordered the village to decide no later than Dec. 12 ‘whether it wants to have services from the Township Fire Department? starting next month.
The alternative was to use its share of fire assets to create its own village department.
Hampton is charged with deciding how the Oxford Public Fire & EMS Commission’s assets ? equipment, property, etc. ? will be divided in light of the Oakland County Circuit Court Judge Wendy Potts? Feb. 23 order to dissolve the entity through which the township and village have jointly owned and operated the fire department since 2000.
The township sued the village to assume sole ownership of the fire department and dissolve OPFEC.
‘It would appear that the township got their wish,? said Councilman Steve Allen. ‘Christmas is a time for wishes to come true.
Now that the village has made its decison, ‘the arbitrator will make a decision as to how the assets of OPFEC will be divided or paid for,? according to the first award.
Council stated that its decision is ‘premised? on the township’s ‘existing obligation? to provide fire, emergency medical and Advanced Life Support services ‘without further costs to the village? based on the two five-year millage voters approved in May 2005.
Township and village voters approved a 1.5-mill tax for fire operations and 1 mill for ALS services, the levy of which begins with the December 2005 township tax bill.
In its motion, council stated ‘the village acknowledges the township’s absolute duty and responsibility to provide these comprehensive services.?
‘The millage is law,? explained Village President Renee Donovan. ‘The millage passed by a majority vote. It doesn’t matter who voted for it (or) who didn’t vote for it. The millage is as good as law.?
‘As an elected official, I have an obligation to support (it), once the majority voices its wishes and its in place. I don’t have to agree, but I have an obligation to support (it) and do the best I can to make something work,? she said.
The idea of creating a separate village-owned department was not favored by officials at this time, according to Councilman Steve Allen. ‘If it ain’t broke, don’t fix it,? he said. ‘The Oxford Fire Department is a great organization. They are highly trained, highly skilled, and provide extremely good service to the community.?
Allen said the decision also had to do with ‘economies of scale.?
‘It was deemed extremely foolish to even attempt to start a second department for many reasons, but redundant fire service just did not make sense at this time,? he explained.
Arbitrator Hampton also thought the creation of a village fire department was not a wise idea.
Operating separate departments ‘will require a level of redundancy in services, assets and personnel such that? the total cost to village and township taxpayers would ‘be higher than if the fire operations were combined,? he wrote.
Hampton stated that the village’s use of assets awarded to it ‘as the foundation of? a village-owned department ‘will likely be followed with substantial additional investment to allow such a department to operate effectively.?
‘This may not be in the best interest of the village’s taxpayers,? Hampton wrote. ‘It may have similar negative effects on the township’s ability to adequately provide similar services to its taxpayers.?
An appraisal of all fire department assets has yet to be completed, however, Hampton did determine that the vacant fire station on W. Burdick Street (seized by the village in July 2003 based on a claim of 100 percent ownership) and the two newer stations (which the township claimed to be the sole owner) are in fact jointly owned by the two municipalities.
It was determined by Hampton that village taxpayers ‘shall continue to pay? their annual portion of the debt incurred constructing the two newer stations. Construction was financed by a bond issue approved by township and village voters in 2000.
Hampton also determined all fire ‘assets acquired after Sept. 11, 1989? ? when a millage for OPFEC’s predecessor, the Oxford Emergency Safety Authority, was approved by voters ? shall be divided based on each municipality’s ‘relative? State Equalized Value, which works out to roughly 82 percent for the township and approximately 18 percent for the village.
The only exception to this SEV formula is a 1987 pumper truck, the value of which will be split 50/50 between the two municipalities, according to Hampton.
Given this inevitable division of assets, council voted Monday that ‘the village requests payment of its entire equity (in the fire department) forthwith? from the township. ‘That was based upon the arbitrator’s award,? Donovan said. ‘That’s his ruling, so we’re going to abide by it.?
Allen maintained council’s request is consistent with the ‘ruling of the arbitrator, which we are all obliged to follow.?
‘How else are the taxpayers of the Village of Oxford, sole owners of the fire department for (approximately) 100 years until OESA, to be reimbursed for their sizeable long-term investment?? he said.
When and if this equity money is paid to the village, Allen insisted it should be returned to village taxpayers, not the village government.
‘The initial investment was made by the taxpayers and the proceeds of that investment should be returned to them. It’s taxpayer money, not village money.?
Donovan disagreed saying the money will be ‘set aside? for future fire service to the village.
‘That money was intended for fire services originally ? the original purchase of equipment, the operation,? Donovan said. ‘So that’s what it will be earmarked for.?
Donovan said the village doesn’t ‘know what will be in five years? with regard to fire services, once the township millages expire. For that reason, the equity money will be ‘set aside.?
‘It’s not going to be dumped into the village coffers and spent recklessly,? she said. ‘It will be definitely set aside and earmarked for future fire usage.?
The third and final part of council’s approved Dec. 12 motion directed the village manager and attorney to ‘research and present options regarding establishing and funding a Northeast Oakland Fire Authority.?
Manager Joe Young explained the idea would be to combine several departments ? such as those in Addison, Brandon, Independence, Orion Oakland and Oxford ? under one authority with the goal being to save money and make fire services more ‘cost effective? for taxpayers.
‘Several of us have been thinking and talking about this concept for at least the last three years, both at the council and at the OPFEC level,? according to Councilman Allen. ‘It all started by looking for ways to maximize the economies of scale for these types of very costly services. Over the past few years, many department have consolidated for that very reason. It is the trend of the future despite what may be going on in Oxford.?
‘It’s really what (OPFEC) was but on a broader basis,? Donovan explained. ‘The economy of scale is far more cost effective.?
‘To have government be effective and efficient, we’re going to have to start looking at those kind of situations,? she said. ‘You don’t need to duplicate things all over the place. And that’s one reason my tendencies really are to go toward a regional (fire authority) . . . I think there are a lot of cost saving benefits.?
‘Maybe I’m a dreamer, but I truly believe that people can work together, should work together. And sometimes we have to push real hard to find a way to work together.?
Township Supervisor Bill Dunn said he had no comment at this time about the arbitrator’s award or council’s decision. ‘I want to wait until the township board has had a chance to sit down and discuss this at Wednesday’s (Dec. 14) meeting,? he said.