Minutes of Regular Meeting of Southern Black Hills Water System Board
Crazy Horse Monument
Thursday, June 25, 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, June 25, 2026.
Chairman Wick called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Wick, Baird, Kowalski, Krump, Nase, Smith, and Zolnowsky; none were absent. Others in attendance were manager Don Peterson and observer Lynn Fillinger.
AGENDA – Motion by Krump, 2nd by Nase to approve the agenda; motion passed unanimously.
MINUTES - Motion by Kowalski, 2nd by Baird to approve the minutes of the May 28, 2026 meeting. Motion passed unanimously.
TREASURER’S REPORT – Peterson presented the treasurer’s report for May 2026. The report was reviewed by the board members. The check sequence ending May 31 was check #4943 and beginning June 1 was check #4944. Motion by Baird, 2nd by Krump to approve the treasurer’s report and transfer $15,000 from the regular checking account into the RD savings account; motion passed unanimously.
OLD BUSINESS –
Jordan Jones of Ketel Thorstenson presented the reports of their audit of SBHWS operations and finance for CY2025. The results were generally consistent with audits from preceding years, with the addition of a single audit section required by the use of federal funding for the Paramount Point / Spring Creek Acres connection project and an additional finding that SBHWS does not yet have explicit written Uniform Guidance poiicy relating to federal funding compliance; the board will seek legal aid in drafting an appropriate policy. Motion by Smith, 2nd by Baird to accept the audit results and authorize the chair to sign documents acknowledging acceptance; motion passed unanimously.
Managers’ Report
Fuller Construction is working on the interior of the PP/SCA water tower, installing insulation and the SCADA system. The tower has been painted and lettered, but the letter size is not proportionate to the tower size so management is working to get the letter size increased.
The previous plan to move the 40Kw generator previously in use at Paramount Point to serve as backup to the PP/SCA tower has been amended. Since the 40Kw generator is oversized for the water tower, the plan is now to sell that generator and purchase a 20Kw generator for tower backup.
Argyle Volunteer Fire Department is beginning construction of a new station on a lot adjacent to the SBHWS Argyle water tower. Per SBHWS policy, SBHWS will be providing water gratis for the station and for fire fighting AVFD purchased materials for the connection and SBHWS tapped the main for the fire department.
The Rushmore Ranch pump station SCADA system failed. Due to time required to obtain repairs parts, a temporary replacement was put into service until repair parts could arrive and repairs made in the next couple of weeks.
As part of a highway safety improvement, Wind Cave National Park will be relocating its southern entrance gate on US 385 further south to opposite the SBHWS property off US 385. This will entail moving the entrance to the SBHWS property to accommodate the new position of the cattle gate at the park entrance.
A large leak within Ph 1 has been found and repaired. On Thursday, June 4, a hillside seepage in the Cobblestone Subdivision was tested for chlorine with positive results. The leak was spraying from what appeared to be a kink in a one-inch line and was repaired on Friday. The leak had eroded a large void which was addressed on Saturday and required two loads of fill material.
The switch to the Casey well as our primary source for Ph1 & 2 is now waiting on installing a chlorine analyzer at the booster pump station.
NEW BUSINESS -
Lynn Fillinger has been attending board meetings as an observer for three months. Motion by Zolnowsky, 2nd by Baird to appoint Fillinger to complete the term of director which Leeann Baker resigned in March running through December 2027; 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,, July 23, 2026 at 1:00 PM at the Crazy Horse Monument in Custer. Future board meetings will be August 27.
ADJOURNMENT - There being no further business, the chair declared the meeting adjourned at 2:49.
Crazy Horse Monument
Thursday, June 25, 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, June 25, 2026.
Chairman Wick called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Wick, Baird, Kowalski, Krump, Nase, Smith, and Zolnowsky; none were absent. Others in attendance were manager Don Peterson and observer Lynn Fillinger.
AGENDA – Motion by Krump, 2nd by Nase to approve the agenda; motion passed unanimously.
MINUTES - Motion by Kowalski, 2nd by Baird to approve the minutes of the May 28, 2026 meeting. Motion passed unanimously.
TREASURER’S REPORT – Peterson presented the treasurer’s report for May 2026. The report was reviewed by the board members. The check sequence ending May 31 was check #4943 and beginning June 1 was check #4944. Motion by Baird, 2nd by Krump to approve the treasurer’s report and transfer $15,000 from the regular checking account into the RD savings account; motion passed unanimously.
OLD BUSINESS –
Jordan Jones of Ketel Thorstenson presented the reports of their audit of SBHWS operations and finance for CY2025. The results were generally consistent with audits from preceding years, with the addition of a single audit section required by the use of federal funding for the Paramount Point / Spring Creek Acres connection project and an additional finding that SBHWS does not yet have explicit written Uniform Guidance poiicy relating to federal funding compliance; the board will seek legal aid in drafting an appropriate policy. Motion by Smith, 2nd by Baird to accept the audit results and authorize the chair to sign documents acknowledging acceptance; motion passed unanimously.
Managers’ Report
Fuller Construction is working on the interior of the PP/SCA water tower, installing insulation and the SCADA system. The tower has been painted and lettered, but the letter size is not proportionate to the tower size so management is working to get the letter size increased.
The previous plan to move the 40Kw generator previously in use at Paramount Point to serve as backup to the PP/SCA tower has been amended. Since the 40Kw generator is oversized for the water tower, the plan is now to sell that generator and purchase a 20Kw generator for tower backup.
Argyle Volunteer Fire Department is beginning construction of a new station on a lot adjacent to the SBHWS Argyle water tower. Per SBHWS policy, SBHWS will be providing water gratis for the station and for fire fighting AVFD purchased materials for the connection and SBHWS tapped the main for the fire department.
The Rushmore Ranch pump station SCADA system failed. Due to time required to obtain repairs parts, a temporary replacement was put into service until repair parts could arrive and repairs made in the next couple of weeks.
As part of a highway safety improvement, Wind Cave National Park will be relocating its southern entrance gate on US 385 further south to opposite the SBHWS property off US 385. This will entail moving the entrance to the SBHWS property to accommodate the new position of the cattle gate at the park entrance.
A large leak within Ph 1 has been found and repaired. On Thursday, June 4, a hillside seepage in the Cobblestone Subdivision was tested for chlorine with positive results. The leak was spraying from what appeared to be a kink in a one-inch line and was repaired on Friday. The leak had eroded a large void which was addressed on Saturday and required two loads of fill material.
The switch to the Casey well as our primary source for Ph1 & 2 is now waiting on installing a chlorine analyzer at the booster pump station.
NEW BUSINESS -
Lynn Fillinger has been attending board meetings as an observer for three months. Motion by Zolnowsky, 2nd by Baird to appoint Fillinger to complete the term of director which Leeann Baker resigned in March running through December 2027; 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,, July 23, 2026 at 1:00 PM at the Crazy Horse Monument in Custer. Future board meetings will be August 27.
ADJOURNMENT - There being no further business, the chair declared the meeting adjourned at 2:49.
