I feel badly that you're so upset. That letter must have been very upsetting. But please don't let them out in the yard unsupervised, even occasionally. A dog may be good 99% of the time, but it only takes that one time for disaster to strike, as you know. Here we have very strict leash laws and after one warning of a loose dog, you are fined $100.00! Dogs have been taken from owners for not obeying the leash laws repeatedly. Not only is it not worth the monetary loss, it's not worth risking Jake's safety or inciting dog hating neighbors, who may report you or cause trouble, even if Jake was not misbehaving, i.e., charging at someone, biting, etc. Just like you, we don't want anything to happen to Jake, or for you to get upset! Don't give those neighbors any ammunition! Maybe you could look into invisible fencing?