% North Fork Accounting

PO Box 414

Paonia, CO81428


Fax 970-527-3023


August 14, 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 Dixie Luke, John Stroh, and Wes Spore.Also present were Merritt Denison, Trey Denison, John Burgevin, and Carl Roberts.


The minutes are approved as read.


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


Dixie L. motions the bills be paid, John S. seconds and the motion carries.


Transfers are okay. General discussion on delinquent Accounts Receivable.


Superintendent Report:

Sunday morning 08/10/2008 ditch broke at Terror Creek; Chesnik Construction and Kiewit Construction fixed the ditch with a trackhoe, dozer, and compactor running twelve to fourteen hours per day; equipment is finished with the repair and is off of the ditch; planning to pour concrete Friday afternoon and Saturday morning (8/15 and 8/16). Terror Creek bridge deck needs to be replaced.Merritt is planning to pour approximately 345 linear feet of concrete; 150 to 175 yards of concrete.The canal should be turned back on Saturday night.


Water is running over Stucker Mesa causing rocks to fall; there is a waste ditch running along the rim of the mesa that has not been cleaned; FMC will clean out the waste ditch (on private property); Steve Schwartzendruber will help Merritt coordinate with landowners.


Merritt and Trey thought Jay Creek siphon might have something stuck in it; Trey went through the siphon and it is clear; Merritt said that Jay Creek siphon used to this when he and Chuck Farmer ran the ditch.


End Superintendent Report.


Insurance report from 07/14/2008 meeting with Aaron Clay:Randy Fisher and Wes Spore met with Aaron Clay regarding the FMC insurance coverage. General liability coverage should be increased to five million dollars.Although directors are indemnified under Colorado law, it would not hurt to add a director indemnification clause to the articles and/or bylaws.Our directorís liability coverage is a good value and would cover director legal defense costs.


General discussion on cost of ditch break; should be less than $100k, hopefully around $85k to $90k.


Spraying discussion: Carl Roberts talked to three landowners on Rogers Mesa recently; if the landowner doesnít want FMC spraying their weeds, then the landowner should take care of the weeds themselves.John B. discusses that if FMC doesnít follow up spray then we wasted the money last year.Dave S. told Wes S. to mention, at this meeting, that he has received several calls about lack of weed control action along the ditch this year.


Wes S. motions to hire John Pickering to perform weed control annually with a budget not to exceed $8k, Dixie L. seconds and the motion carries.


Coal Road and Coal Road Bridge: Delta County owns the road and the bridge, Bureau of Reclamation found the document dating back to 1949 granting the road and bridge to Delta County.Bill H. and Trey D. stopped the Hotchkiss Fire Dept from crossing the bridge to fight a fire; FMC is very concerned that the weight of the equipment would have broken the bridge.


Yeoman footbridge was only supposed to be three to four feet wide, drawings now indicate a six foot wide footbridge; Randy will call Steve Coverly at Bureau of Reclamation and discuss problems with the bridge; can the bridge hold a Kubota B7100 tractor and the stringers are untreated lumber.


Discussion on Pitt bridge; consensus is to write a letter to Pitt and tell her she has to claim ownership of the bridge and fix the bridge or FMC will remove the bridge in the spring 2009.


General discussion on part-time help ad: ad needs to mention physical labor requirements, seasonal nature of the job, and ad needs to focus on long term relationship and apprenticeship nature of job.


General discussion on Fire Mountain Extension shareholder letter: soften language in last two paragraphs and point in the direction of a lateral; Randy will email directors a new draft.


Conditional water filings have been approved; FMC needs to show some due diligence in the next six years; Dixie proposes to go to the Forest Service and ask if they can start the EIS on the Beckwith enlargement.


Meeting adjourned at 10:00 pm.




Randall W. Fisher, Secretary