Minutes of Regular Meeting of Southern Black Hills Water System Board (Provisional)
Crazy Horse Monument
Thursday, March 27, 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, March 27, 2025.
Chairman Wick called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Wick, Baker, Baird, Beard, Kowalski, Krump, Nase, and Zolnowsky; Smith was absent. Others in attendance were manager Don Peterson, counsel Talbot Wieczorek, and observers Doug Musser, Van Capansky, Sharon Dickson, Mike Rutherford, and Craig LaFollette.
AGENDA – Motion by Baird, 2nd by Krump to approve the agenda; motion passed unanimously.
MINUTES - Motion by Krump, 2nd by Beard to approve the minutes of the February 20, 2025 meeting. Motion passed unanimously.
TREASURER’S REPORT – Peterson presented the treasurer’s report for February 2025. The report was reviewed by the board members. The check sequence ending February 28 was check #4618 and beginning March 1 was check #4619. Motion by Beard, 2nd by Krump to approve the treasurer’s report, transfer $15,000 from the regular checking into the RD account, and authorize payment to Flatland of $235,667.85 for work completed for the PP/SCA project; motion passed unanimously. Motion by Beard, 2nd by Krump to authorize payment to Fuller Construction of $148,419 for materials, contingent upon approval by the state funding agency and having sufficient funds in the construction account; motion passed unanimously.
OLD BUSINESS –
Managers’ Report
SBHWS has delivered to Ketel Thorstensen paperwork required for the audit of 2024 operations and management. Management was advised by the auditors that receipt of over $750,000 in federal funding requires more extensive documentation and that is expected to apply to the 2025 audit.
An easement on private land not adjacent to a public right-of-way was discovered to have been filed with an incorrect description: the wrong township/range designation. Management and legal counsel are working to effect a corrected description which requires approval by multiple landowners.
Management asked the South Dakota Association of Rural Water Systems about holding another planning retreat with SBHWS (last held May 19, 2022); SDARWS estimated they can conduct such a session in either July or August.
PAFs testing has been completed for the SBHWS Madison wells and wells at Paramount Point. The results were no detectable level; the federal safe limit is 4 parts per billion.
Over the past two months, multiple leaks have been identified and addressed. For Phase 1, 2, & 4, a meter whose protective insulation had been pulled away froze in recent cold weather, damaging the meter and requiring the meter to be replaced. At Rushmore Ranch, a pressure relief valve broke resulting in a leak. At Spring Creek Acres, a seep in a hillside was identified as a leak and repaired.
NEW BUSINESS -
Members of the board reviewed the minutes of the March 20, 2025 Public Hearing regarding a DANR funding application for added funding for the Paramount Point / Spring Creek Acres project. Motion by Krump, 2nd by Kowalski to approve the minutes; motion passed unanimously.
Motion by Baird, 2nd by Nase to approve Resolution 2025-01 authorizing a request for consideration by the Water Board of South Dakota Department of Agriculture and Natural Resources for up to $600,000 of additional ARPA grant funds for the Paramount Point / Spring Creek Acres project, authorizing execution and submission of the application, and designating an authorized representative of SBHWS to certify and sign payment requests; motion passed unanimously.
EXECUTIVE SESSION -
Motion by Baird, 2nd by Nase to enter into Executive Session at 1:52; motion passed unanimously.
Motion by Krump, 2nd by Beard to move out of Executive Session at 2:44; motion passed unanimously. There were no motions arising out of Executive Session.
UPCOMING MEETINGS -
The next meeting of the Southern Black Hills System Board will be Thursday, April 24, 2025 at 1:00 PM at the Crazy Horse Monument in Custer. Future board meetings will be May 22 and June 26.
ADJOURNMENT - There being no further business, the chair declared the meeting adjourned at 2:47.
Crazy Horse Monument
Thursday, March 27, 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, March 27, 2025.
Chairman Wick called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Wick, Baker, Baird, Beard, Kowalski, Krump, Nase, and Zolnowsky; Smith was absent. Others in attendance were manager Don Peterson, counsel Talbot Wieczorek, and observers Doug Musser, Van Capansky, Sharon Dickson, Mike Rutherford, and Craig LaFollette.
AGENDA – Motion by Baird, 2nd by Krump to approve the agenda; motion passed unanimously.
MINUTES - Motion by Krump, 2nd by Beard to approve the minutes of the February 20, 2025 meeting. Motion passed unanimously.
TREASURER’S REPORT – Peterson presented the treasurer’s report for February 2025. The report was reviewed by the board members. The check sequence ending February 28 was check #4618 and beginning March 1 was check #4619. Motion by Beard, 2nd by Krump to approve the treasurer’s report, transfer $15,000 from the regular checking into the RD account, and authorize payment to Flatland of $235,667.85 for work completed for the PP/SCA project; motion passed unanimously. Motion by Beard, 2nd by Krump to authorize payment to Fuller Construction of $148,419 for materials, contingent upon approval by the state funding agency and having sufficient funds in the construction account; motion passed unanimously.
OLD BUSINESS –
Managers’ Report
SBHWS has delivered to Ketel Thorstensen paperwork required for the audit of 2024 operations and management. Management was advised by the auditors that receipt of over $750,000 in federal funding requires more extensive documentation and that is expected to apply to the 2025 audit.
An easement on private land not adjacent to a public right-of-way was discovered to have been filed with an incorrect description: the wrong township/range designation. Management and legal counsel are working to effect a corrected description which requires approval by multiple landowners.
Management asked the South Dakota Association of Rural Water Systems about holding another planning retreat with SBHWS (last held May 19, 2022); SDARWS estimated they can conduct such a session in either July or August.
PAFs testing has been completed for the SBHWS Madison wells and wells at Paramount Point. The results were no detectable level; the federal safe limit is 4 parts per billion.
Over the past two months, multiple leaks have been identified and addressed. For Phase 1, 2, & 4, a meter whose protective insulation had been pulled away froze in recent cold weather, damaging the meter and requiring the meter to be replaced. At Rushmore Ranch, a pressure relief valve broke resulting in a leak. At Spring Creek Acres, a seep in a hillside was identified as a leak and repaired.
NEW BUSINESS -
Members of the board reviewed the minutes of the March 20, 2025 Public Hearing regarding a DANR funding application for added funding for the Paramount Point / Spring Creek Acres project. Motion by Krump, 2nd by Kowalski to approve the minutes; motion passed unanimously.
Motion by Baird, 2nd by Nase to approve Resolution 2025-01 authorizing a request for consideration by the Water Board of South Dakota Department of Agriculture and Natural Resources for up to $600,000 of additional ARPA grant funds for the Paramount Point / Spring Creek Acres project, authorizing execution and submission of the application, and designating an authorized representative of SBHWS to certify and sign payment requests; motion passed unanimously.
EXECUTIVE SESSION -
Motion by Baird, 2nd by Nase to enter into Executive Session at 1:52; motion passed unanimously.
Motion by Krump, 2nd by Beard to move out of Executive Session at 2:44; motion passed unanimously. There were no motions arising out of Executive Session.
UPCOMING MEETINGS -
The next meeting of the Southern Black Hills System Board will be Thursday, April 24, 2025 at 1:00 PM at the Crazy Horse Monument in Custer. Future board meetings will be May 22 and June 26.
ADJOURNMENT - There being no further business, the chair declared the meeting adjourned at 2:47.
