% North Fork Accounting

PO Box 414

Paonia, CO81428


Fax 970-527-3023


July 10, 2008


The monthly meeting of the board of directors of the Fire Mountain Canal and Reservoir Company was called to order by President Houseweart at 7:30 pm.Directors present were Dave Stiller, John Stroh and Wes Spore.Also present were Merritt Denison, Trey Denison and John Burgevin.


The minutes are approved as read.


Dave S. motions the treasurerís report be accepted, Wes S. seconds and motion carries.


Wes S. motions the bills be paid, Dave S. seconds and the motion carries.


Transfers are okay.


Superintendent Report:


Paonia Reservoir spilled the early morning of Friday June 13, 2008; flood water ended about a week ago, July 5, 2008; ditch is running 179 to 181 cfs at Somerset.


Merritt and Trey have identified three ditch leaks; the first leak is by the Beauter place at Terror Creek; the second leak is on Sunshine Mesa, and the third leak is just before Wolf Park and just beyond a prior concrete pour.Merritt and Trey advise repairing the Terror Creek leak and the Sunshine Mesa leak, the Wolf Park leak is not a problem right now.

The Terror Creek repair will involve approximately 250 linear feet of concrete and cost approximately $12,000 dollars; the Sunshine Mesa repair will involve approximately 200 linear feet of concrete and cost approximately $10,000 dollars.


Merritt met with a BLM representative at the Coal Road bridge after the June meeting; Merritt faxed pictures from our bridge book to the BLM and has not received a response as yet.


The Paonia Dam was inspected by the Bureau of Reclamation on Tuesday June 24, 2008; standard operating procedures were updated, and the brush on the dam will need to be cut.


Delta County weed coordinator Webb Callicut has some money for spraying toadflax at the dam.John Pickering, of Weed Busters, advises to spray toadflax in the fall.


We should not have to use reservoir water for another two to three weeks.


The Fire Mountain Extension is running alright, nobody is complaining; general discussion on draft letter; Randy will revise and email to board members for comments and/or changes.


End Superintendent Report


Wes S. discussion on insurance: Wes and Randy will meet with Aaron Clay on Monday July 14, 2008 to discuss our insurance policies and get his advice on our policies.John B. mentions Colorado Revised Statutes provide some protection to non-profit corporation and their directors.


Budget Discussion:general discussion on wages, possibility of part-time help to give some relief to Merritt.General discussion on needed repairs for fall 2008 and/or spring 2009 including the Terror Creek and Sunshine Mesa concrete pours.


Board consensus is to place a help wanted ad in the shopper and on the web site right now and see what kind of interest we get.


After each board member provides his/her opinion on what the 2008 assessment should be, Wes S. motions to set the 2008 assessment at $.80 per share, with a $35 per shareholder user fee, and $.05 of the assessment to be set aside for future repairs, Dave S. seconds and the motion carries.


After discussion on the written job descriptions, Dave S motions to accept the 3/31/08 revised job descriptions for superintendent, ditch rider, and dam tender, Wes S. seconds and the motion carries.


Meeting adjourned at 9.45 pm.




Randall W. Fisher, Secretary