1. Bay Breeze Point “A Premier Waterfront Community” HOA Fencing Study Group January – October 2010 1 Phase 2 Fencing Study Group Working Papers

2. Phase 2 -- Study Group Objectives Identify potential options for white masonry fence/wall given its legal status, e.g., maintenance Consolidate potential options for presentation to BOD for consideration and/or approval 2 Phase 2 Fencing Study Group Working Papers

3. Phase 2 – Summary of Actions Group Meetings & Actions – June 21 -- Initial meeting: recapped Phase 1 study; discussed way ahead for Phase 2 (6 of 9 group members attended) June 22-July 5: Group members developed options; then options were consolidated for July 12 th meeting – July 12 -- Discussed consolidated options and identified items for further evaluations, etc. (all group members attended) – July 19 -- Phase 2 Study Group was Placed on Hold Pending Legal Review of Phase 1 – September 20 – BOD approved Phase 2 Study Group to Continue Actions with Guidance – September 27 -- Group members reviewed July 12 actions and discussed edits to group’s actions/eight alternatives (7 of 9 group members attended) – October 11 -- Group members reviewed and provided comments on final study product via email – October 25 -- Phase 2 results provided to BOD – both PowerPoint presentation and executive summary of Phase 2 3 Phase 2 Fencing Study Group Working Papers

4. Potential Phase 2 Fencing Study Group Alternatives Maintain the entire fence/wall and flagpole area with HOA funding. Maintain the entire fence/wall and flagpole area with volunteer labor and/or donations. Maintain the eight entryway fence/wall sections and flagpole area with HOA funding and maintain the rest of the private outer fence/wall with volunteer labor and/or donations. Maintain the eight entryway fence/wall sections and flagpole area with HOA funding – the remaining sections maintained by their respective private owners. Maintain the eight entryway fence/wall sections and flagpole area with volunteer labor and/or donations. Private fence/wall owners take care of their respective sections of fence/wall. Maintain the four fence/wall sections and flagpole area that's on City of Norfolk property with HOA funding. Private fence/wall owners take care of their respective sections. Maintain the four entryway fence/wall sections and flagpole area that's on City of Norfolk property with HOA funding. The four entryway sections on the north side of the entrance taken care by the property owner and volunteer labor and/or donations. Private fence/wall owners take care of their respective sections of fence/wall. Do nothing. 4 Phase 2 Fencing Study Group Working Papers

5. Phase 2 Notes Each alternative/option requires research and actions before presentation to the HOA, e.g., obtaining easements/permission, ARB guidelines review. Using HOA funding/assessments to maintain privately owned properties runs counter to “Virginia Code” and the “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point”. An action taken on private property could lead to legal actions and transfers of responsibility for repairs and total maintenance. The Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point states the following in Article VII, Section 7.1.(n): "...Any fence or wall built on any of the Lots or Parcels shall be maintained in a proper manner so as not to detract from the value and desirability of surrounding property..." Eight entryway fence/wall sections refer to four sections on each side of the Pleasant Avenue entrance to Bay Breeze Point. Maintenance of the fence/wall includes the structural condition and street side appearance of the fence/wall itself and the landscaping adjacent to community entrance. Volunteer labor and/or donations should be managed by a non-HOA group -- i.e., HOA funds and/or resources should not be used. Some HOA members consider the white masonry fence/wall as aesthetically pleasing and believe it provides a sense of security. 5 Phase 2 Fencing Study Group Working Papers

6. Alternative : Maintain the entire fence/wall and flagpole area with HOA funding. Pros: – Given the legal status of the fence/wall and flagpole area, no valid pros could be identified. Cons: – Alternative uses HOA funding to maintain private properties -- major legal issues. – Alternative runs counter to guidance within “Virginia Code” and the “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point”. – Alternative opens the door to additional requests from other HOA members for the HOA to construct and/or maintain their private properties. – Alternative requires upfront legal expenses to obtain required documentations. Required Implementation Actions: – Needs 2/3 HOA vote (83 Lot Owners). – Change to “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point” on use of HOA funds. – Special exemption from Virginia Code for maintenance of private properties. – Legal documentations, e.g., easements, private property versus HOA liabilities. – Legal challenges and actions. – Easements needed from East Beach and later the city to access the outer wall. 6 Phase 2 Fencing Study Group Working Papers

7. Alternative : Maintain the entire fence/wall and flagpole area with volunteer labor and/or donations. Pros: – Alternative uses no HOA funding. – Alternative avoids HOA private property issues, e.g., additional requests, legal challenges. Cons: – Transfers fence/wall maintenance responsibilities from private property owners to a non-HOA group. – Maintaining private property, even with volunteer labor and/or donations, may open the door to maintaining other homeowners property—major legal issues. – Coordination of volunteers may be difficult. Required Implementation Actions: – Maintenance of fence/wall enforced via “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point”. – Might need 2/3 HOA vote (83 Lot Owners). – Legal issues, e.g., easements, private property versus non-HOA group liabilities. 7 Phase 2 Fencing Study Group Working Papers

8. Alternative : Maintain the eight entryway fence/wall sections and flagpole area with HOA funding and maintain the rest of the private outer fence/wall with volunteer labor and/or donations. Pros: – Given the legal status of the fence/wall and flagpole area, no valid pros could be identified. Cons: – Alternative uses HOA funding to maintain private properties -- major legal issues. – Alternative runs counter to guidance within “Virginia Code” and the “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point”. – Alternative opens the door to additional requests from other HOA members for the HOA to construct and/or maintain their private properties. – Alternative requires upfront legal expenses to obtain required documentations. – Maintaining private property, even with volunteer labor and/or donations, may open the door to maintaining other homeowners property—major legal issues. – Coordination of volunteers may be difficult. Required Implementation Actions: – Needs 2/3 HOA vote (83 Lot Owners). – Change to “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point” on use of HOA funds. – Special exemption from Virginia Code for maintenance of private properties. – Legal documentations, e.g., easements, private property versus HOA liabilities. – Legal challenges and actions. 8 Phase 2 Fencing Study Group Working Papers

9. Pros: – Given the legal status of the fence/wall and flagpole area, no valid pros could be identified. Cons: – Alternative uses HOA funding to maintain private properties -- major legal issue. – Alternative runs counter to guidance within “Virginia Code” and the “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point”. – Alternative opens the door to additional requests from other HOA members for the HOA to construct and/or maintain their private properties. – Alternative requires upfront legal expenses to obtain required documentations. Required Implementation Actions: – Needs 2/3 HOA vote (83 Lot Owners). – Change to “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point” on use of HOA funds. – Special exemption from Virginia Code for maintenance of private properties. – Legal documentations, e.g., easements, private property versus HOA liabilities. – Legal challenges and actions. 9 Alternative : Maintain the eight entryway fence/wall sections and flagpole area with HOA funding – the remaining sections maintained by their respective private owners. Phase 2 Fencing Study Group Working Papers

10. Alternative : Maintain the eight entryway fence/wall sections and flagpole area with volunteer labor and/or donations. Private fence/wall owners take care of their respective sections of fence/wall. Pros: – Alternative uses no HOA funding. – Alternative avoids HOA private property issues, e.g., additional requests, legal challenges. Cons: – Ties maintenance of the eight entryway fence/wall to volunteer labor and/or donations. – Transfers maintenance responsibilities from private property owners to a non-HOA group for four sections of fence/wall north of Pleasant Avenue. – Transfers some maintenance responsibilities from HOA to a non-HOA group for four sections of fence/wall south of Pleasant Avenue and flagpole area – located on City of Norfolk properties. – Coordination of volunteers may be difficult. Required Implementation Actions: – HOA vote. – Maintenance of fence/wall enforced via “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point”. 10 Phase 2 Fencing Study Group Working Papers

11. Alternative : Maintain the four entryway fence/wall sections and flagpole area that's on City of Norfolk property with HOA funding. Private fence/wall owners take care of their respective sections. Pros: – Alternative avoids private property issues, e.g., additional requests, legal challenges. – Requires no change to “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point”. Cons: – May dictate using approved ARB procedures and HOA Declarations to ensure fence/wall actions do not detract from the value and desirability of surrounding properties. Required Implementation Actions: – Could implement without HOA vote. – Maintenance of remaining fence/wall enforced via “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point”. – Need an easement from the City of Norfolk. 11 Phase 2 Fencing Study Group Working Papers

12. Alternative : Maintain the four entryway fence/wall sections and flagpole area that's on City of Norfolk property with HOA funding. The four entryway sections on the north side to be taken care of by the property owner and volunteer labor and/or donations. Private fence/wall owners take care of their respective sections of fence/wall. Pros: – Alternative limits HOA funding to maintaining fence/wall on City of Norfolk property. – Alternative avoids private property issues, e.g., additional requests, legal challenges. – Requires no change to “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point”. Cons: – Coordination of volunteers may be difficult. – May dictate using approved ARB procedures and HOA Declarations to ensure fence/wall actions do not detract from the value and desirability of surrounding properties. Required Implementation Actions: – Could implement without HOA vote. – Maintenance of remaining fence/wall enforced via “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point”. 12 Phase 2 Fencing Study Group Working Papers

13. Alternative : Do Nothing. Pros: – Alternative avoids HOA private property issues, e.g., additional requests, legal challenges. Cons: – Ties maintenance of most of the fence/wall to “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point” except for the four fence/wall sections and flagpole area on City of Norfolk property. – No one responsible for maintenance of fence/wall located on City of Norfolk property. Required Implementation Actions: – Could implement without HOA vote, but HOA-wide vote (with 83 votes needed to approve alternative) should be obtained given the potential impacts on the overall community. – Maintenance of fence/wall enforced via “Declaration of Covenants, Restrictions, Reservations and Easements of Bay Breeze Point”. 13 Phase 2 Fencing Study Group Working Papers