This is the reply I got from support in case anyone wants to read it. The questions I sent were exactly the same as the ones posted above, still couldn't believe this guy just came up with a bunch BS to brush me off.
Abhishek (SimCity BuildIt)
Feb 5, 14:58
Hey Mayor, thanks for letting us know about your service area problems.
If you're seeing warnings (and getting complaints from your citizens), first check your service coverage to see if demand is outstripping capacity. The residential zone complaining might not be within any of the existing buildings' protection areas, or might have tipped the demand/capacity scales into the red.
Service buildings must also sit on a road, as the road network provides the routes for the services to travel under, or for emergency services to speed along. If your road network is not fully connected, your residential buildings will be unable to access your services! Make sure you haven't accidentally cut your citizens off from the rest of the city by tracing your roads and making sure there are no loops or unexpected dead-ends.
We are aware that there are some of our Mayors having problems with their area service areas, and can understand how frustrating it is. However, these next two suggestions are definitely workarounds for the situation and will help until we release our next bugfix update.
If there is a service building you think is misbehaving, temporarily move it to remind it of its purpose! Long-press the service building until the screen goes pale, move it far away and use the green checkmark to place it elsewhere. Your residential buildings will turn red again. Next, long-tap the same service building again to reselect it, and move it back where it was before. This should provide coverage for you again.
This can also be an effective workaround if a residential building is incorrectly complaining of not receiving services. Temporarily move the residential building and place it elsewhere in your city. Then move it back again and your citizens should be happy again!
