Minutes of Regular Meeting of Southern Black Hills Water System Board (Provisional)
Crazy Horse Monument
Thursday, March 26, 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, March 26, 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; no members were absent. Others in attendance were manager Don Peterson and counsel Talbot Wieczorek.
AGENDA – Motion by Nase, 2nd by Krump to approve the agenda; motion passed unanimously.
MINUTES - Motion by Smith, 2nd by Kowalski to approve the minutes of the February 26, 2026 meeting. Motion passed unanimously.
TREASURER’S REPORT – Peterson presented the treasurer’s report for February 2026. The report was reviewed by the board members. The check sequence ending February 28 was check #4882 and beginning March 1 was check #4883. Motion by Baird, 2nd by Krump to approve the treasurer’s report, transfer $6098 from the regular checking account to the Loan Payment account, transfer $15,000 from the regular checking account into the RD savings account, and pay a $163,000 partial work completion invoice from Fuller Construction; motion passed unanimously.
OLD BUSINESS –
Managers’ Report
Despite the repair of a major water main line break along Argyle Road found January 22, the February monthly water usage report included continued evidence of a significant leak in the Phase 1 line; the leak is now up to 75% of water supplied to Phases 1, 2, & 4. Staff will continue investigating, first by a close surface inspection for evidence of a leak from UTV, or then soliciting the aid of leak isolation resources from SDARWS.
During the January 22-25 service disruption, communication with affected customers was difficult or impossible for those who had not signed up for the IRIS notification. A February mailing requested customers not yet registered with IRIS to return registration forms; approximately 30 customers have submitted new contact information.
Fuller Construction is working to provide electrical service to the PP/SCA water storage tower.
RCS Engineering has been contracted to install two valves at the Spring Creek Acres well and storage site so that water from Paramount Point can be used to fill the SCA storage. Management expects to cover the cost of this effort by the setoffs against Flatland Industries sought to cover the damages at the SCA station caused by excessive pressure through a bypassed input PRV.
Two developers along Argyle Road, West Wind and Mower Subdivision, are boring under Argyle Rd in preparation to establish connections to the SBHWS main passing those areas. Although their current distribution plans using per-site cisterns have been approved by DANR, discussion among the board reached the consensus that both for better service and later development, instantaneous water demand in new developments along Argyle Rd would best be served by additional ground-level storage at the booster pump station.
Management has asked has for an engineering estimate to serve nine ranches north from Daughenbaugh Rd along SD Hwy 79; the primary service line for such a project would be about eight miles long.
Initial submission of paperwork for the 2025 operations audit to Ketel-Thorstensen has been completed; the auditors have asked for a few more items of documentation. An additional audit must be prepared covering expenditures on the PP/SCA project construction during 2025.
The Preston family sold nine lots north of Hermosa in 2025 with the commitment to provide water service from SBHWS. The family is now close to obtaining easements required for SBHWS to provide service, and has begun updating their engineering effort and plans to meet SBHWS requirements specified in the developer process document.
NEW BUSINESS -
Leeann Baker submitted her resignation from the Board effective March 25. Due to family issues, she found she was no longer able to fulfill the duties of a trustee. Motion by Baird, 2nd by Smith to accept her resignation and to thank her for her service; motion passed unanimously.
EXECUTIVE SESSION -
Motion by Baird, 2nd by Nase to enter into Executive Session at 1:46; motion carried unanimously.
Motion by Baird, 2nd by Kowalski to come out of Executive Session at 2:51; motion carried unanimously.
There were two motions arising out of Executive Session. Motion by Baird, 2nd by Smith to change the connection fee from $8000 to $10,000 effective June 1; motion carried unanimously. Motion by Baird, 2nd by Krump to impose a monthly surcharge per user of $12.50 effective June 1 for users in Spring Creek Acres to cover approximately $80,000 in unforeseen costs in connecting Paramount Point to Spring Creek Acres; motion passed unanimously.
UPCOMING MEETINGS -
The next meeting of the Southern Black Hills System Board will be Thursday,, April 23, 2026 at 1:00 PM at the Crazy Horse Monument in Custer. Future board meetings will be May 28 and June 25.
ADJOURNMENT - Motion by Krump, 2nd by Nase to adjourn the meeting; there being no further business, the chair declared the meeting adjourned at 3:00.
Crazy Horse Monument
Thursday, March 26, 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, March 26, 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; no members were absent. Others in attendance were manager Don Peterson and counsel Talbot Wieczorek.
AGENDA – Motion by Nase, 2nd by Krump to approve the agenda; motion passed unanimously.
MINUTES - Motion by Smith, 2nd by Kowalski to approve the minutes of the February 26, 2026 meeting. Motion passed unanimously.
TREASURER’S REPORT – Peterson presented the treasurer’s report for February 2026. The report was reviewed by the board members. The check sequence ending February 28 was check #4882 and beginning March 1 was check #4883. Motion by Baird, 2nd by Krump to approve the treasurer’s report, transfer $6098 from the regular checking account to the Loan Payment account, transfer $15,000 from the regular checking account into the RD savings account, and pay a $163,000 partial work completion invoice from Fuller Construction; motion passed unanimously.
OLD BUSINESS –
Managers’ Report
Despite the repair of a major water main line break along Argyle Road found January 22, the February monthly water usage report included continued evidence of a significant leak in the Phase 1 line; the leak is now up to 75% of water supplied to Phases 1, 2, & 4. Staff will continue investigating, first by a close surface inspection for evidence of a leak from UTV, or then soliciting the aid of leak isolation resources from SDARWS.
During the January 22-25 service disruption, communication with affected customers was difficult or impossible for those who had not signed up for the IRIS notification. A February mailing requested customers not yet registered with IRIS to return registration forms; approximately 30 customers have submitted new contact information.
Fuller Construction is working to provide electrical service to the PP/SCA water storage tower.
RCS Engineering has been contracted to install two valves at the Spring Creek Acres well and storage site so that water from Paramount Point can be used to fill the SCA storage. Management expects to cover the cost of this effort by the setoffs against Flatland Industries sought to cover the damages at the SCA station caused by excessive pressure through a bypassed input PRV.
Two developers along Argyle Road, West Wind and Mower Subdivision, are boring under Argyle Rd in preparation to establish connections to the SBHWS main passing those areas. Although their current distribution plans using per-site cisterns have been approved by DANR, discussion among the board reached the consensus that both for better service and later development, instantaneous water demand in new developments along Argyle Rd would best be served by additional ground-level storage at the booster pump station.
Management has asked has for an engineering estimate to serve nine ranches north from Daughenbaugh Rd along SD Hwy 79; the primary service line for such a project would be about eight miles long.
Initial submission of paperwork for the 2025 operations audit to Ketel-Thorstensen has been completed; the auditors have asked for a few more items of documentation. An additional audit must be prepared covering expenditures on the PP/SCA project construction during 2025.
The Preston family sold nine lots north of Hermosa in 2025 with the commitment to provide water service from SBHWS. The family is now close to obtaining easements required for SBHWS to provide service, and has begun updating their engineering effort and plans to meet SBHWS requirements specified in the developer process document.
NEW BUSINESS -
Leeann Baker submitted her resignation from the Board effective March 25. Due to family issues, she found she was no longer able to fulfill the duties of a trustee. Motion by Baird, 2nd by Smith to accept her resignation and to thank her for her service; motion passed unanimously.
EXECUTIVE SESSION -
Motion by Baird, 2nd by Nase to enter into Executive Session at 1:46; motion carried unanimously.
Motion by Baird, 2nd by Kowalski to come out of Executive Session at 2:51; motion carried unanimously.
There were two motions arising out of Executive Session. Motion by Baird, 2nd by Smith to change the connection fee from $8000 to $10,000 effective June 1; motion carried unanimously. Motion by Baird, 2nd by Krump to impose a monthly surcharge per user of $12.50 effective June 1 for users in Spring Creek Acres to cover approximately $80,000 in unforeseen costs in connecting Paramount Point to Spring Creek Acres; motion passed unanimously.
UPCOMING MEETINGS -
The next meeting of the Southern Black Hills System Board will be Thursday,, April 23, 2026 at 1:00 PM at the Crazy Horse Monument in Custer. Future board meetings will be May 28 and June 25.
ADJOURNMENT - Motion by Krump, 2nd by Nase to adjourn the meeting; there being no further business, the chair declared the meeting adjourned at 3:00.
