FIRE MOUNTAIN CANAL & RESERVOIR COMPANY

PO Box 414

Paonia, CO81428

970-527-3662

Fax 970-527-3023

 

January 15, 2009

 

The 2008 annual meeting of the board of directors of the Fire Mountain Canal and Reservoir Company was called to order by President Houseweart at 7:45 pm.Directors present were Dixie Luke, Dave Stiller, Wes Spore and John Stroh.Also present were Merritt Denison and Trey Denison.

 

Everybody present at the meeting introduces themselves.

 

Merritt Denisonís Report:

Merritt reviews the 2008 ditch operations and explains that Trey Denison will go into more detail on the Terror Creek ditch break.

 

Snowpack figures: McClure 140%, Overland 180%, Leroux Creek 110%.

 

Ditch rider Trey D. gives a detailed discussion on the Terror Creek ditch break and the repair process.

 

Dixie L. gives a detailed discussion on the 250 feet of drain installed at the Terror Creek ditch break site.

 

Bill H. discusses the emergency fund and the funds the company currently has available.

 

Dixie L. discusses the Sunshine Mesa and Powell Mesa leaks and concrete pours that were done in the fall 2008.Dixie L. stressed the boardís desire and plan to be proactive in ditch maintenance.

 

Secretary Randy Fisher reviews the financial statement with the shareholders. Randy F. reviews the financial statement line by line, spending a little extra time on the cost of the ditch break, mileage expense, and payroll.

 

Bill H. discusses past assessments and future assessments; how much money is reasonable to have on hand as opposed to assessing the shareholders when the company needs more money. John Burgevin thought $.10 per share per year would be a better contingency plan than the $.05 per share per year.

 

Trey D. reiterates that the company is being proactive with maintenance issues.

 

A shareholder asks a question about hiring an engineer to advise the board on ditch issues; Wes S. answers the question by saying the Bureau of Reclamation engineers are involved in ditch and dam maintenance issues and the board invited an engineer from Glenwood Springs, John Sikora, to propose on the Terror Creek drain and to insect the length of the ditch.Sikora toured the ditch, from Terror Creek to Wolf Park, with Dixie L, Dave S., and Wes S. in the fall 2008 and was generally impressed with overall condition of the ditch.However, Sikora did caution to maintain the siphons religiously due to the incredible high cost of repair/replacement.

 

Wes S. also discussed the possibility of lining the ditch with a geoliner product.The big problem with the liner is damage caused by elk and deer hooves.This problem is solved by covering the liner with concrete but this would be very expensive.

 

Wes S. also discussed that the board identified the leaks on Sunshine Mesa and Powell Mesa as the most critical to fix; Wolf Park will be the first leak fixed in spring 2009.

 

Shareholder Dion Luke asks Merritt D. and Trey D. about employee logs and mileage logs.Merritt and Trey defend the time they spend on ditch operations and mileage put on vehicles; Merritt mentions that he has destroyed several vehicles riding the ditch.

 

Shareholder Myles Roberts asks the board if it would make more fiscal sense to buy a vehicle for Merritt and Trey.

 

Shareholder Ron Smith questioned the board about using the product PAM in the ditch to seal leaks; Dixie L. and Merritt answer that the Bureau of Reclamation has issued a memo prohibiting the use of PAM in federal projects.

 

Secretary Randy Fisher announced that a quorum was reached and an election will be held.158,067.5 shares were represented tonight at the meeting; this represents 71.8% percent of the total shares.

 

Greg Mellott of the Paonia Cemetery District discussed wireless communication devices to save mileage and soils.

 

Shareholder Gail Frank discussed his support of the current board, get water in the ditch as soon as possible, and run the water as long as possible.

 

Discussion on early April water, people above are shutting off headgates and flooding shareholders below, i.e. lower Rogers Mesa gets flooded by upper Rogers Mesa.Dixie L. discusses ongoing communication between the Fire Mtn board and the RMWDA board regarding the start of irrigation water.

 

Shareholder Dan Robinson, and President of the RMWDA, discusses the reasoning behind last yearís decision to start the water on a Saturday: the board thought more shareholders would be able to get involved in cleaning boxes and avoid downstream flooding.

 

Shareholder Danny Cotton discusses that the water turn on date needs to be revisited each spring.

Shareholders Dion Luke and Carl Roberts express their dismay at the board doing little to no spraying in 2008; Carl discusses the board should spend some money every year to keep up with problem.Bill H. responded that the board was fairly consumed with the Terror Creek ditch break and spraying did not get done.However, a motion was made and passed at the August 2008 meeting to budget money for John Pickering to spray for weeds annually.Also, Delta County weed coordinator Webb Callicut sprayed toadflax at the Paonia Dam in the fall 2008.

 

Nominations:

 

The floor was opened for shareholder nominations.Dan Robinson motioned for John Stroh and Wes Spore to serve another term, Louis Ketchum seconded the motion.

 

Bob Madden nominated Dan Bolton for election to the board, Scott Loesekan seconded the motion.

 

Troy Spencer motioned to cease nominations, Jerry Dance seconded, and nominations ceased.

 

Bill H. invited John S., Wes S., and Dan Bolton to talk a little about themselves.

 

Bill H. and Secretary Randy F. explain cumulative voting the present shareholders.Bill H. appoints Steve Ruder, Jerry Dance, and Aki Blake to the election committee.Aki Blake has to leave during the process and Esther Koontz replaces her.

 

John Stroh and Wes Spore are reelected to the board.

 

Annual meeting adjourned at10:45 pm.

 

 

 

Randall W. Fisher, Secretary