Minutes of Regular Meeting of Southern Black Hills Water System Board
Crazy Horse Monument
Thursday, June 26, 2025
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 26, 2025.
Chairman Wick called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Wick, Baird, Baker, Kowalski, Krump, Nase, and Zolnowsky; Beard and Smith were absent. Others in attendance were manager Don Peterson, and observers Sharon Dickson, Craig and Lavonne LaFollette, and Doug Musser.
AGENDA – Motion by Baird, 2nd by Krump to approve the agenda; motion passed unanimously.
MINUTES - Motion by Baird, 2nd by Kowalski to approve the minutes of the May 22, 2025 meeting. Motion passed unanimously.
TREASURER’S REPORT – Peterson presented the treasurer’s report for May 2025. The report was reviewed by the board members. The check sequence ending May 31 was check #4681 and beginning June 1 was check #4682. Motion by Zolnowsky, 2nd by Nase to approve the treasurer’s report and transfer $15,000 from the regular checking into the RD account; motion passed unanimously.
OLD BUSINESS –
Managers’ Report
SBHWS’ Ford pickup had a transmission failure. A call to AAMCO for repair resulted in an offer of either a new transmission for $11,700 or a used transmission for $6,000. A repair call to McKee Ford resulted in an offer of a new transmission for $7,600 with a three-year warranty. Discussion led to the consensus of dismissing the option of purchasing another pickup in favor of getting the Ford repaired. Motion by Krump, 2nd by Baker to have the vehicle repaired by McKee; motion passed unanimously.
A quote for insurance covering the 2025-2026 term will be presented in July. Generator problems during the past year led to the discovery that the generators had not been covered; the quote for next year will include all SBHWS generators.
Jim Magnuson, formerly with RDO, has started his own generator support company, Watt Works. The new venture offers services for lower costs and management prefers to go with the new company. It was suggested that SBHWS request a service agreement.
At the May 21, 2025 meeting of the Custer County Commissioners, SBHWS was referenced twice. In the first instance, a party wanting to connect to SBHWS service sought to procure an easement to bore their service line under a county road; the county deferred action since they preferred that SBHWS be responsible for the bore; after a conversation with SBHWS management about new customer connection policy, the county granted the easement to the customer at the June 25 commission meeting. In the second instance, a potential customer complained to the commission about communication difficulties with SBHWS, excessive costs of connections, and a number of other unfounded issues for which the commission could take no action but requested more information from SBHWS; management contacted the party, explained the connection policy, and referred him to a contractor familiar with establishing connections to SBHWS; management also contacted the commission by phone to clear the air.
NEW BUSINESS -
Wick has compiled a history of SBHWS and asked that it be published on the SBHWS website; all agreed.
Wick circulated a copy of the SDARWS publication “Quality on Tap”, and suggested that all board members should subscribe; Baker noted that the publication is available online at the SDARWS.com website.
EXECUTIVE SESSION -
Motion by Krump, 2nd by Baird to enter into Executive Session at 1:40; motion passed unanimously.
Motion by Zolnowsky, 2nd by Baker to move out of Executive Session at 2:30; motion passed unanimously.
There was one motion arising out of Executive Session. Motion by Krump, 2nd by Nase designate the existing funds in the Equipment Savings account as the Rural Development Reserve account, rename the account accordingly, and commit half of each new customer connection fee (the fee is presently $8000) to be added the the RD Reserve account; motion passed unanimously.
UPCOMING MEETINGS -
The next meeting of the Southern Black Hills System Board will be Thursday, July 24, 2025 at 1:00 PM at the Crazy Horse Monument in Custer. Future board meetings will be August 21, and September 25.
ADJOURNMENT - There being no further business, the vice-chair declared the meeting adjourned at 2:40.
Crazy Horse Monument
Thursday, June 26, 2025
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 26, 2025.
Chairman Wick called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Wick, Baird, Baker, Kowalski, Krump, Nase, and Zolnowsky; Beard and Smith were absent. Others in attendance were manager Don Peterson, and observers Sharon Dickson, Craig and Lavonne LaFollette, and Doug Musser.
AGENDA – Motion by Baird, 2nd by Krump to approve the agenda; motion passed unanimously.
MINUTES - Motion by Baird, 2nd by Kowalski to approve the minutes of the May 22, 2025 meeting. Motion passed unanimously.
TREASURER’S REPORT – Peterson presented the treasurer’s report for May 2025. The report was reviewed by the board members. The check sequence ending May 31 was check #4681 and beginning June 1 was check #4682. Motion by Zolnowsky, 2nd by Nase to approve the treasurer’s report and transfer $15,000 from the regular checking into the RD account; motion passed unanimously.
OLD BUSINESS –
Managers’ Report
SBHWS’ Ford pickup had a transmission failure. A call to AAMCO for repair resulted in an offer of either a new transmission for $11,700 or a used transmission for $6,000. A repair call to McKee Ford resulted in an offer of a new transmission for $7,600 with a three-year warranty. Discussion led to the consensus of dismissing the option of purchasing another pickup in favor of getting the Ford repaired. Motion by Krump, 2nd by Baker to have the vehicle repaired by McKee; motion passed unanimously.
A quote for insurance covering the 2025-2026 term will be presented in July. Generator problems during the past year led to the discovery that the generators had not been covered; the quote for next year will include all SBHWS generators.
Jim Magnuson, formerly with RDO, has started his own generator support company, Watt Works. The new venture offers services for lower costs and management prefers to go with the new company. It was suggested that SBHWS request a service agreement.
At the May 21, 2025 meeting of the Custer County Commissioners, SBHWS was referenced twice. In the first instance, a party wanting to connect to SBHWS service sought to procure an easement to bore their service line under a county road; the county deferred action since they preferred that SBHWS be responsible for the bore; after a conversation with SBHWS management about new customer connection policy, the county granted the easement to the customer at the June 25 commission meeting. In the second instance, a potential customer complained to the commission about communication difficulties with SBHWS, excessive costs of connections, and a number of other unfounded issues for which the commission could take no action but requested more information from SBHWS; management contacted the party, explained the connection policy, and referred him to a contractor familiar with establishing connections to SBHWS; management also contacted the commission by phone to clear the air.
NEW BUSINESS -
Wick has compiled a history of SBHWS and asked that it be published on the SBHWS website; all agreed.
Wick circulated a copy of the SDARWS publication “Quality on Tap”, and suggested that all board members should subscribe; Baker noted that the publication is available online at the SDARWS.com website.
EXECUTIVE SESSION -
Motion by Krump, 2nd by Baird to enter into Executive Session at 1:40; motion passed unanimously.
Motion by Zolnowsky, 2nd by Baker to move out of Executive Session at 2:30; motion passed unanimously.
There was one motion arising out of Executive Session. Motion by Krump, 2nd by Nase designate the existing funds in the Equipment Savings account as the Rural Development Reserve account, rename the account accordingly, and commit half of each new customer connection fee (the fee is presently $8000) to be added the the RD Reserve account; motion passed unanimously.
UPCOMING MEETINGS -
The next meeting of the Southern Black Hills System Board will be Thursday, July 24, 2025 at 1:00 PM at the Crazy Horse Monument in Custer. Future board meetings will be August 21, and September 25.
ADJOURNMENT - There being no further business, the vice-chair declared the meeting adjourned at 2:40.
