Minutes of Regular Meeting of Southern Black Hills Water System Board
Crazy Horse Monument
Thursday, January 22, 2026
The Regular Meeting of the Board of Directors of the Southern Black Hills Water System was held at the Crazy Horse Monument on Thursday, January 22, 2026.
Chairman Wick called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Wick, Baird, Beard, Kowalski, Krump, Nase, Smith, and Zolnowsky; Baker was absent. Others in attendance were manager Don Peterson.
AGENDA – Motion by Smith, 2nd by Nase to approve the agenda; motion passed unanimously.
MINUTES - Motion by Smith, 2nd by Krump to approve the minutes of the November 25, 2025 meeting. Motion passed unanimously.
TREASURER’S REPORT – Peterson presented the treasurer’s report for November and December 2025. The report was reviewed by the board members. The check sequence ending December 31 was check #4833 and beginning January 1 was check #4834. Motion by Krump, 2nd by Smith to approve the treasurer’s report and transfer $15,000 from the regular checking into the RD account; motion passed unanimously.
OLD BUSINESS –
SBHWS has paid the $1500 annual fee for membership in the Western Dakota Regional Water System.
Black Hills Cooperative plans for a building near the intersection of Hwy 79 and Hwy 40 include water requirements for fire support of 750gpm for 30 minutes, which their current plans for using their own well source could not meet. BHC was advised that the SBHWS storage at Paramount Point also could not meet those requirements, but could be met by connection to the main line between Paramount Point and the SBHWS water tower along Hwy 79; discussions continue on whether BHC is willing to accept that solution.
Managers’ Report
The monthly water usage report included evidence of a significant leak in the Phase 1 line. Management planned to patrol the main line via UTV to look for indications of the leak. However, as the meeting concluded, management received a call reporting a leak found along Argyle Rd not far west of Hwy 385.
Management reported on the progress of the Paramount Point (PP) / Spring Creek Acres project. RCS Engineering completed installation of the new 80kw generator at PP, had Alexander Drilling drill Well #3 at PP (360ft at 50gpm from the Inyan Kara aquifer), and connected that well to the new pump station; the contractor thus has reached project completion and final payment is in progress. Fuller Construction has hired Macguire Iron to begin erection of the water storage tower beginning in February. Flatland has reached progress completion; final payment is awaiting acceptances of setoffs related to Spring Creek Acres water usage and line damage, together with use of SBHWS engineering for construction advice; documentation supporting the setoffs has been sent to the contractor and DANR.
A new account has been set up at First Interstate Bank to be used for payment of the loans for the Paramount Point / Spring Creek Acres loan. Quarterly withdrawals from this account for the $540,000 Drinking Water State Revolving Fund loan at 2.125% will commence February 15, 2026 at the amount of $6097.30 per quarter. The last withdrawal for this loan is scheduled for November 15, 2055; the accrued interest and administrative surcharge in the amount of $3,538.13 was already collected on October 29, 2025.
Ketel Thorstensen will be conducting the audit of 2025 operations; some additional documentation will be need to be provided relating to the use of grants in support of the Paramount Point / Spring Creek Acres project.
The water service plans for the Quine and Mower developments along Argyle Rd have been submitted to DANR.
The electrical power failures after the wind storm of Dec 18 required use of generator power for multiple stations. A generator failure at Rushmore Ranch led to a four-day service outage there.
NEW BUSINESS -
SBHWS was asked to provide a letter of support for WDRWS; a letter was prepared, signed by the Chairman and submitted to WDRWS.
Chairman Wick reported on his observations from the SDARWS Annual Technical Conference in Pierre Jan 13-15.
SBHWS will engage Spheros Environmental to prepare required reports for various agencies. A motion to enter into an agreement covering five years for up to $20,000 in services and authorizing the Chairman to sign was made by Baird, 2nd by Nase; motion passed unanimously.
EXECUTIVE SESSION -
There was no Executive Session.
UPCOMING MEETINGS -
The next meeting of the Southern Black Hills System Board will be Thursday,, February 26, 2026 at 1:00 PM at the Crazy Horse Monument in Custer. Future board meeting will be March 26 and April 23.
ADJOURNMENT - There being no further business, the chair declared the meeting adjourned at 2:40.
Crazy Horse Monument
Thursday, January 22, 2026
The Regular Meeting of the Board of Directors of the Southern Black Hills Water System was held at the Crazy Horse Monument on Thursday, January 22, 2026.
Chairman Wick called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Wick, Baird, Beard, Kowalski, Krump, Nase, Smith, and Zolnowsky; Baker was absent. Others in attendance were manager Don Peterson.
AGENDA – Motion by Smith, 2nd by Nase to approve the agenda; motion passed unanimously.
MINUTES - Motion by Smith, 2nd by Krump to approve the minutes of the November 25, 2025 meeting. Motion passed unanimously.
TREASURER’S REPORT – Peterson presented the treasurer’s report for November and December 2025. The report was reviewed by the board members. The check sequence ending December 31 was check #4833 and beginning January 1 was check #4834. Motion by Krump, 2nd by Smith to approve the treasurer’s report and transfer $15,000 from the regular checking into the RD account; motion passed unanimously.
OLD BUSINESS –
SBHWS has paid the $1500 annual fee for membership in the Western Dakota Regional Water System.
Black Hills Cooperative plans for a building near the intersection of Hwy 79 and Hwy 40 include water requirements for fire support of 750gpm for 30 minutes, which their current plans for using their own well source could not meet. BHC was advised that the SBHWS storage at Paramount Point also could not meet those requirements, but could be met by connection to the main line between Paramount Point and the SBHWS water tower along Hwy 79; discussions continue on whether BHC is willing to accept that solution.
Managers’ Report
The monthly water usage report included evidence of a significant leak in the Phase 1 line. Management planned to patrol the main line via UTV to look for indications of the leak. However, as the meeting concluded, management received a call reporting a leak found along Argyle Rd not far west of Hwy 385.
Management reported on the progress of the Paramount Point (PP) / Spring Creek Acres project. RCS Engineering completed installation of the new 80kw generator at PP, had Alexander Drilling drill Well #3 at PP (360ft at 50gpm from the Inyan Kara aquifer), and connected that well to the new pump station; the contractor thus has reached project completion and final payment is in progress. Fuller Construction has hired Macguire Iron to begin erection of the water storage tower beginning in February. Flatland has reached progress completion; final payment is awaiting acceptances of setoffs related to Spring Creek Acres water usage and line damage, together with use of SBHWS engineering for construction advice; documentation supporting the setoffs has been sent to the contractor and DANR.
A new account has been set up at First Interstate Bank to be used for payment of the loans for the Paramount Point / Spring Creek Acres loan. Quarterly withdrawals from this account for the $540,000 Drinking Water State Revolving Fund loan at 2.125% will commence February 15, 2026 at the amount of $6097.30 per quarter. The last withdrawal for this loan is scheduled for November 15, 2055; the accrued interest and administrative surcharge in the amount of $3,538.13 was already collected on October 29, 2025.
Ketel Thorstensen will be conducting the audit of 2025 operations; some additional documentation will be need to be provided relating to the use of grants in support of the Paramount Point / Spring Creek Acres project.
The water service plans for the Quine and Mower developments along Argyle Rd have been submitted to DANR.
The electrical power failures after the wind storm of Dec 18 required use of generator power for multiple stations. A generator failure at Rushmore Ranch led to a four-day service outage there.
NEW BUSINESS -
SBHWS was asked to provide a letter of support for WDRWS; a letter was prepared, signed by the Chairman and submitted to WDRWS.
Chairman Wick reported on his observations from the SDARWS Annual Technical Conference in Pierre Jan 13-15.
SBHWS will engage Spheros Environmental to prepare required reports for various agencies. A motion to enter into an agreement covering five years for up to $20,000 in services and authorizing the Chairman to sign was made by Baird, 2nd by Nase; motion passed unanimously.
EXECUTIVE SESSION -
There was no Executive Session.
UPCOMING MEETINGS -
The next meeting of the Southern Black Hills System Board will be Thursday,, February 26, 2026 at 1:00 PM at the Crazy Horse Monument in Custer. Future board meeting will be March 26 and April 23.
ADJOURNMENT - There being no further business, the chair declared the meeting adjourned at 2:40.
