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Introduction

Since 1992, HFII homeowners have confronted the issue of replacing the old and dilapidated stockade fence with a new and more contemporary design supported by fence manufacturers.

	All styles of fence have been considered (brick, wood, composite, vinyl, cast concrete, brick/wood combination), financing options explored (GID),
	fence companies and surrounding neighborhoods have been consulted, and
	most importantly, HFII homeowner feedback sought via the web, e-mails and open forum meetings. The Fence Committee carefully considered each input, and based on the compilation of feedback came to a consensus agreement that the current proposal (see below) satisfies the community’s desire to put HFII at least on par with the surrounding communities and will do so in the most economical, aesthetically pleasing and equitable way.

The fence replacement proposal will be presented for a vote by the HOA Board to HFII homeowners using mail-in ballots that will be sent to each homeowner on July 15, 2004. The ballot will ask each homeowner to approve or disapprove amendments to the HFII covenants that will;

(1) expand the Association’s existing right under the covenants to permit the Association to maintain, repair and replace the perimeter fence;

(2) provide for the Association’s ongoing maintenance of the fence into the future; and

(3) provide for a special assessment of the costs for the fence replacement, allocated between perimeter and interior lot owners, to be paid by homeowners as either a one-time payment or over a three-year period, at each homeowner’s election.

A copy of the proposed amendment language will accompany each ballot. The ballots must be mailed back to the HOA and postmarked by August 15, 2004 or given to one of the Fence Committee members prior to August 15, 2004. The details of each of these three points, as well as the background to the current proposal and the work that has gone in to develop the proposal, are discussed in greater detail below.

The HFII Board and the Fence Committee, comprised of both perimeter and interior lot owners, unanimously support approval of the proposed amendments and ask for each HFII homeowner’s affirmative support of the fence replacement proposal.

Feedback from ~ 45 Homeowners at the June 14 & 21 meetings

(Candyce Cavanagh of Orten & Hindman law firm and Tom Barenberg of Split Rail Fence were participants in the June 14 Meeting)

Q1: Under the proposed amendments to the Declaration of Covenants, Conditions and Restrictions of Homeowners Association of Homestead Farm II ("Declaration"), who owns the perimeter fencing?

A1: Under the proposed amendments to the Declaration, each perimeter lot owner will own that portion of the perimeter fence located on the owner’s lot; the Association will have responsibility to maintain, repair and replace perimeter fencing.

Q2: Will the amendments affect owner’s title to their lots?

A2: The Declaration and any amendments thereto are in the chain of title to each owner’s lot. The proposed amendment creates an additional maintenance obligation for the Association and authorizes the Association to include the expenses associated with perimeter fencing in the common expense assessment. The proposed amendments do not create any additional easements on the lots nor do the amendments alter a perimeter owner’s title in their property. The proposed amendments merely expand the existing easement in the Declaration to permit the Association to maintain, repair and replace the fence. The Association will not own the fence with this approach but will have the right and obligation to maintain, repair and replace the fence, ensuring uniform maintenance of the perimeter fencing.

Q3: Must the Association obtain a signed easement from each owner with perimeter fencing and how do the proposed changes affect title to the owner’s lots?

A3: Article XI, Section 1 of the Declaration addresses exterior maintenance. Under the Declaration as currently drafted, all fences on lots are the owner’s responsibility. Under the proposed amendment to the Declaration, the Association will be responsible for perimeter fence maintenance, repair and replacement.

Article XI, Section 4 of the Declaration grants the Association an easement to enter lots to perform its maintenance responsibilities as set forth in Article XI, Section 1 of the Declaration. This section reads as follows:

For the purposes solely of performing the maintenance referred to in

Section 1 and 2 of this Article, the Association, through its duly authorized

agents or employees shall have the right, after reasonable notice to the Owner,

to enter upon any Lot at reasonable hours on any business day.

If the proposed amendments are approved, the Association will have an easement under the terms of Article XI, Section 4 of the Declaration to enter lots to maintain, repair and replace the perimeter fencing without obtaining separate easement agreements from each lot owner with perimeter fencing. However, the easement to enter the lots under Article XI, Section 4 of the Declaration to perform maintenance does not convey title to any portion of the improvements on the lot, such as the perimeter fencing, to the Association. Therefore, the Association will not own the perimeter fencing on the lots under this approach. Consistent with the Declaration, the Association will provide notice to perimeter lot owners of scheduled maintenance, repair or replacement of the fence.

Q4: As an interior owner, why should I help pay for a new fence? Can’t the Association just force perimeter homeowners to properly maintain the existing fence?

A4: There are no simple answers to these related questions, but there are several points which support the approach proposed by the HFII Board and the Fence Committee:

	First, the cost to replace the old stockade fence is now approximately $600 per 8’ panel. This cost is extremely high compared to a new fence because the stockade panels are an outdated design and manufactured by only one company located in Michigan. Also, the cedar wood is not available anymore. Only the pine pickets, which look different and withstand weathering very poorly, are available on a limited and sporadic basis.
	Second, the Association has gone on to a few properties and maintained the fence at the owners’ ultimate expense, but this type of covenant enforcement action frequently entails significant legal expense--which are expenses paid by all HFII homeowners out of the Association’s operating funds. It is not difficult to envision an attempt to force perimeter owners to repair or replace the existing fence that could result in legal fees approximating what it would cost for the Association to install the new fence.
	In addition to the exceptionally high legal cost of covenant enforcement, a forced approach to replacing the perimeter fence likely would result in uneven and unpredictable results. If we don’t agree as a community to install a new fence, we could end up with the same situation as Homestead Farm, i.e. a patchwork of a 6’ fence, a 4’ fence, a gray fence, an unstained fence and so on – an unsightly and unacceptable solution.

Q5: Will the proposed Western Red Cedar style fence be stained?

A5: The Association will be responsible for staining the street-side with a semi-transparent stain designed principally to enhance the look of the fence and secondarily to preserve and protect the existing wood surfaces. The stain is formulated to protect wood from rot, water absorption, ultraviolet light and mildew. It will enhance the natural warmth, beauty and integrity of the new fence. An attractive and yet conservative stain will be selected. If a homeowner elects to stain his/her side of the fence, the color should be identical to that chosen by the Fence Committee and Board. An example of the stain selected will be put on the sample fence located at the upper tennis courts, prior to the ballots being mailed.

Q6: What happens if a homeowner plants a tree or bushes that damage the fence?

A6: The language of the proposed changes to Article XI, Section 1 will stipulate that such damage is paid for by the homeowner.

Q7: My property backs up to Foxridge. Why is that not considered perimeter fence?

A7: The fence that is a dividing line between you and your Foxridge neighbor may be owned by the Foxridge owner. This also may be the case for those HFII owners with a boundary line shared by the medical building and the Big Tool Box land on the south side of HFII.

Q8: I live on the greenbelt and also on Dry Creek and wonder if the fence on the greenbelt side of my property be included?

A8: The map enclosed and on the web site www.HFII.org provides the detail as to what fence is proposed to be replaced. The entryways on E. Kettle, E. Long Ave., S. Jersey St. and East Jamison Ave, and the current stockade fence on the greenbelt that you are referring to will be replaced. Also note that the plan is to install fence at the end of the greenbelt at Dry Creek Rd., leaving the two walkways open for pedestrian access. This will further enhance the privacy of our neighborhood and help attenuate some of the sound that resonates up the greenbelt to many interior homes.

Other Comments

C1: There will be a bevel on the posts. No cap is planned as they tend to be a maintenance heavy item because they are made of pine and can easily be removed by vandals.

C2: The posts will be placed in concrete.

C3: A large crew of workers is planned that can remove a 2,000 – 3,000 foot section of the old fence, set the posts in concrete and install the new fence in two weeks. The entire fence installation should take approximately 10 weeks.

C4: Landscape changes on the entire outside of the new perimeter fence are planned to eliminate/minimize the fence exposure to sprinklers.

C5: The annual fee (estimated at $23) to be collected beginning in 2007 is for maintenance of the fence. The fence contractor is responsible for maintenance of the fence for the initial six years beginning upon the substantial completion of the fence installation.

C6: The objective of this fence committee is to get the old fence replaced as soon as possible. It is not the committee's intention to tackle how to handle this situation the next time it arises - that will be considered in the near future by the Association’s Board.

C7: The fence contractor will notify each perimeter homeowner of the schedule to take down the existing fence. This will give the homeowner the opportunity to arrange with the contractor to erect a temporary fence at the homeowners’ expense, if desired. The fence contractor does carry liability insurance and in addition has a $5 million excess liability umbrella policy.

C8: The expected life of the new fence is approximately 20 years, if maintained properly.

C9: If a homeowner sells his/her home prior to completion of the three payments, the remaining financial liability would become an escrow item, just as the dues currently are escrowed.

C10: Trimming of landscape around the old fence prior to removal is the responsibility of the homeowner. For practical reasons, the contractor does not want the liability associated with his selection of what trimming takes place.

C11: Split Rail Fence Co. is willing to work with the individual homeowner if he/she wants a gate or additional fence along neighbor boundaries. Call Tom Barenberg at Split Rail Fence Co. (303.791.1997) for more information.

Estimate

Including a contingency factor for unforeseen expenses, the fence is estimated to cost $258,000. The proposal from the fence contractor is firm through the end of the year, with the understanding that installation would begin in September or October.

Proposal

With an escalation factor built into the Fence Committee calculation, the base bid for a Hillcrest style fence constructed of natural western red cedar (no brick columns), installed over 9,471 feet surrounding much of the neighborhood, is $258,000. Based upon those figures, the ballot will propose a one-time payment of $570 by each interior owner and $975 payment by each perimeter owner. The Fence Committee and the Association’s Board also have developed the following alternative 3-year payoff schedule which can be used by those homeowners choosing to do so.

Property One 2004 2005 2006

Owner Type Time OR Payment Payment Payment

Interior $570 OR $ 190 $ 190 $ 190

Perimeter $975 OR $ 325 $ 325 $ 325

Note: The 2005 & 2006 amortized payments exclude the nominal interest charges

	Payment(s) would be timed in such a way that it would be due approximately 6 months after the regular HFII dues payment, so as to space each homeowner’s payments to the HOA (a fence assessment payment and regular homeowner dues) as far apart as possible.
	If you have any questions about payment and/or financing, please contact the Fence Committee via the HOA website at www.HFII.org.
	Upfront, one-time lump sum payments have the benefit of avoiding the nominal interest charges associated with the three-year payment plan set out in the table above. The Association’s Board is asking homeowners that are able to do so to make the one-time payment, which will minimize the administrative burden on the Association.

Conclusions and Future Action

The Association’s Board and the Fence Committee members believe strongly that the overall good of the neighborhood is being served by this comprehensive effort to install a new fence. We would all enjoy the new look, the security it provides, and the enhanced value it brings to all homeowners. It is our sincere hope that all perimeter owners will embrace this proposal and vote in the affirmative to install a new fence. For most perimeter owners, the economies of scale (purchasing 9,471 ft. at one time), having the interior homeowners share a percentage of the cost, and eliminating the hassles of trying to secure the current stockade style panels for maintenance, make this effort economically sound and worthwhile. It is also our sincere hope that the interior owners will likewise embrace this proposal and vote affirmatively, recognizing that the proposal provides a cost efficient solution to the long-standing problem of the fence, is fair in its apportionment of the costs between perimeter and interior homeowners, and ultimately enhances the value of all HFII residents’ homes, including interior lot owners.

	July 15 -- Mailing and/or hand delivery of ballots
	July 15 thru August 14 -- Canvassing of neighborhood by Fence Committee volunteers to answer questions and collect ballots, if not already mailed in.
	August 15 -- Voting ends [BALLOTS MUST BE POST MARKED BY THIS DATE OR GIVEN TO A FENCE COMMITTEE MEMBER]
	August 20 -- Results of the vote published on HFII web site www.HFII.org
	September 5 – Results of the vote published in Barnstormer
	Mid-September -- In the event the vote passes, work begins on the replacement fence.

As always, if you have questions or comments at any time, please contact one of the Fence Committee members or utilize the online feedback form via the web site www.HFII.org by clicking on the "Fence" tab on the left side of the page. Thank you.

Matt Johnston, Chairman (interior owner) Association Board member

Tony Patinella (interior owner) Association Board member

Mark Bird (interior owner) Bob Moore (interior owner)

Kathleen & Tony Mercado (perimeter owner) Andy Jagger (interior owner)

Phil Rahrig (interior owner) Patrick McCarthy (interior owner)

Gerry Palmer (perimeter owner) Lori Snow (interior owner)

Bill Doyle (perimeter owner)