Minutes of Regular Meeting of Southern Black Hills Water System Board
Crazy Horse Monument
Thursday, April 25, 2024
The Regular Meeting of the Board of Directors of the Southern Black Hills Water System was held at the Crazy Horse Monument on Thursday, April 25, 2024.
Chairman Wick called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Wick, Krump, Nase, Seaboldt, and Zolnowsky; Baird, Beard, and Kraus were absent. Others in attendance were Don Peterson.
AGENDA – Motion by Krump, 2nd by Seaboldt to approve the agenda. Motion passed unanimously.
MINUTES - Motion by Seaboldt, 2nd by Nase to approve the minutes of the March 21, 2024 meeting. Motion passed unanimously.
TREASURER’S REPORT – Don Peterson presented the treasurer’s report for March 2024. The report was reviewed by the board members. Motion by Seaboldt, 2nd by Smith to approve the treasurer’s report and transfer $15,000 from the regular checking into the RD account. Motion passed unanimously. The check sequence ending March 31 was check #4406 and beginning April 1 was check #4407.
OLD BUSINESS –
Managers’ Report
On March 28, the DANR Water Board responded to the SBHWS request for an additional $ 3,181,000 funding for the Paramount Point / Spring Creek Acres project. SBHWS received $1,597,000 in grant and a loan of $1,584,000. Together with the funding package SBHWS received previously in April 2022 of $3,060,000 in grant and $540,000 in loan, the total package with DANR comes to $6,781,000. The total amount for grant is $4,657,000 and for loan will be $2,124,000; this comes out to 68% grant and 32% loan. SBHWS will have two separate loans on the PP/SCA project.
In a letter dated April 12, 2024, DANR notified SBHWS that its analysis indicates that in order to be able to cover the additional loan for the PP/SCA project, SBHWS would need to need to increase rates by an estimated $10 and will require a resolution of the Board establishing rates sufficient to fund the additional debt. The budget committee was asked to meet April 30 to provide a recommendation to the full Board on what rate structure to adopt in order to meet this requirement.
Wick and Peterson attended the Western Dakota Regional Water System southern hills meeting in Hot Spring on April 23, along with representatives from other southern hills water systems. The WDRWS presentation was similar to that in previous meetings. WDRWS representatives at this meeting expressed an interest in working with SBHWS to establish connectivity throughout the southern hills area.
The developer of the Westward Pines and Maurer Subdivisions along Argyle Road has been advised that SBHWS would require that service to the area be flow-limited and that he would need to provide sufficient storage so that demand from the subdivisions does not impact the present level of service to previously existing customers along Argyle Road;. He has elected to provide the required storage by installing an 1800 gallon cistern on each of the 26 lots. Refill of each cistern will be flow-limited in order to guarantee the overall flow limitation.
The coin box equipment previously purchased for the Rushmore Ranch water salesman is missing significant parts needed to put the salesman into operation. The decision has been made to scrap the hardware on hand and order a complete new unit. Some welding work is also necessary to secure the coin box.
In the Phase 2 subsystem, differences between meter measured water delivered an water pumped at the booster stations indicates a significant loss of water in the system. SDARWS will provide technical assistance in locating the loss point(s) sometime during the next two weeks.
NEW BUSINESS -
In a letter dated April 4, DANR has advised SBHWS that SBHWS is eligible to receive an additional $600,000 grant of ARPA for the Paramount Point / Spring Creek Acres project. SBHWS would need to submit a written request for these funds and the board would need to pass a resolution authorizing the additional funding. Motion by Smith, 2nd by Seaboldt to authorize the chair to sign a letter requesting the additional funding; motion carried unanimously.
\Motion by Krump, 2nd by Nase to approve the resolution (2024-01) authorizing the funding; motion carried unanimously.
There was no Executive Session.
PUBLIC QUESTIONS AND COMMENTS - None
UPCOMING MEETINGS -
The budget committee will meet to develop a recommendation to the full board on the size and form of increased rates needed to satisfy the requirements for the March 28 loan award from DANR. The meeting will he held at the Winner’s Circle conference room in Hot Springs on April 30 at 1:00.
The next meeting of the Southern Black Hills System Board will be May 23, 2024 at 1:00 PM at the Crazy Horse Monument in Custer.
ADJOURNMENT - There being no further business, the chair declared the meeting adjourned at 2:37.
Crazy Horse Monument
Thursday, April 25, 2024
The Regular Meeting of the Board of Directors of the Southern Black Hills Water System was held at the Crazy Horse Monument on Thursday, April 25, 2024.
Chairman Wick called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Wick, Krump, Nase, Seaboldt, and Zolnowsky; Baird, Beard, and Kraus were absent. Others in attendance were Don Peterson.
AGENDA – Motion by Krump, 2nd by Seaboldt to approve the agenda. Motion passed unanimously.
MINUTES - Motion by Seaboldt, 2nd by Nase to approve the minutes of the March 21, 2024 meeting. Motion passed unanimously.
TREASURER’S REPORT – Don Peterson presented the treasurer’s report for March 2024. The report was reviewed by the board members. Motion by Seaboldt, 2nd by Smith to approve the treasurer’s report and transfer $15,000 from the regular checking into the RD account. Motion passed unanimously. The check sequence ending March 31 was check #4406 and beginning April 1 was check #4407.
OLD BUSINESS –
Managers’ Report
On March 28, the DANR Water Board responded to the SBHWS request for an additional $ 3,181,000 funding for the Paramount Point / Spring Creek Acres project. SBHWS received $1,597,000 in grant and a loan of $1,584,000. Together with the funding package SBHWS received previously in April 2022 of $3,060,000 in grant and $540,000 in loan, the total package with DANR comes to $6,781,000. The total amount for grant is $4,657,000 and for loan will be $2,124,000; this comes out to 68% grant and 32% loan. SBHWS will have two separate loans on the PP/SCA project.
In a letter dated April 12, 2024, DANR notified SBHWS that its analysis indicates that in order to be able to cover the additional loan for the PP/SCA project, SBHWS would need to need to increase rates by an estimated $10 and will require a resolution of the Board establishing rates sufficient to fund the additional debt. The budget committee was asked to meet April 30 to provide a recommendation to the full Board on what rate structure to adopt in order to meet this requirement.
Wick and Peterson attended the Western Dakota Regional Water System southern hills meeting in Hot Spring on April 23, along with representatives from other southern hills water systems. The WDRWS presentation was similar to that in previous meetings. WDRWS representatives at this meeting expressed an interest in working with SBHWS to establish connectivity throughout the southern hills area.
The developer of the Westward Pines and Maurer Subdivisions along Argyle Road has been advised that SBHWS would require that service to the area be flow-limited and that he would need to provide sufficient storage so that demand from the subdivisions does not impact the present level of service to previously existing customers along Argyle Road;. He has elected to provide the required storage by installing an 1800 gallon cistern on each of the 26 lots. Refill of each cistern will be flow-limited in order to guarantee the overall flow limitation.
The coin box equipment previously purchased for the Rushmore Ranch water salesman is missing significant parts needed to put the salesman into operation. The decision has been made to scrap the hardware on hand and order a complete new unit. Some welding work is also necessary to secure the coin box.
In the Phase 2 subsystem, differences between meter measured water delivered an water pumped at the booster stations indicates a significant loss of water in the system. SDARWS will provide technical assistance in locating the loss point(s) sometime during the next two weeks.
NEW BUSINESS -
In a letter dated April 4, DANR has advised SBHWS that SBHWS is eligible to receive an additional $600,000 grant of ARPA for the Paramount Point / Spring Creek Acres project. SBHWS would need to submit a written request for these funds and the board would need to pass a resolution authorizing the additional funding. Motion by Smith, 2nd by Seaboldt to authorize the chair to sign a letter requesting the additional funding; motion carried unanimously.
\Motion by Krump, 2nd by Nase to approve the resolution (2024-01) authorizing the funding; motion carried unanimously.
There was no Executive Session.
PUBLIC QUESTIONS AND COMMENTS - None
UPCOMING MEETINGS -
The budget committee will meet to develop a recommendation to the full board on the size and form of increased rates needed to satisfy the requirements for the March 28 loan award from DANR. The meeting will he held at the Winner’s Circle conference room in Hot Springs on April 30 at 1:00.
The next meeting of the Southern Black Hills System Board will be May 23, 2024 at 1:00 PM at the Crazy Horse Monument in Custer.
ADJOURNMENT - There being no further business, the chair declared the meeting adjourned at 2:37.
