Minutes of Regular Meeting of Southern Black Hills Water System Board
Crazy Horse Monument
Thursday, May 22, 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, May 22, 2025.
Vice-Chairman Smith called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Baird, Beard, Kowalski, Krump, Nase, Smith, and Zolnowsky; Baker and Wick were absent. Others in attendance were manager Don Peterson, counsel Talbot Wieczorek, Jordan Jones of Ketel Thorstenson, and observers Sharon Dickson, Craig LaFollette, and Doug Musser.
AGENDA – Motion by Krump, 2nd by Nase to approve the agenda; motion passed unanimously.
MINUTES - Motion by Beard, 2nd by Baird to approve the minutes of the April 24, 2025 meeting. Motion passed unanimously.
TREASURER’S REPORT – Peterson presented the treasurer’s report for April 2025. The report was reviewed by the board members. The check sequence ending April 30 was check #4664 and beginning May 1 was check #4665. Motion by Beard, 2nd by Baird to approve the treasurer’s report and transfer $15,000 from the regular checking into the RD account; motion passed unanimously.
OLD BUSINESS –
The South Dakota Department of Agriculture and Natural Resources responded to the SBHWS request of $600,000 of additional funding for the Paramount Point / Spring Creek Acres project with notice that they will be recommending an ARPA grant of $500,000 to be awarded at the Water Board’s June meeting; this will raise the total project ARPA grant award to $4,102,432. Andy Bruels requested explicit notice whether SBHWS wished to request the remainder of our request in the form of a State Revolving Fund loan. Peterson noted that the inspection costs for the project were projected to be about $90,000 and could be covered by operating income, so the use of loan funding was not necessary. Motion by Beard, 2nd by Baird authorizing the Chairman to send a letter to DANR stating that SBHWS will not be seeking the remaining $100,000 as an SRF loan; motion passed unanimously.
Managers’ Report
RCS has back-filled the underground storage tank at Paramount Point. The next step is the installation of the pump in the second well, which will then be used to fill the 33,000 gallon tank.
Flatland is looking for a leak in the main installed along Daughenbaugh Rd. Fuller Construction has poured the pillars for the tower base platform.
Dakota Ludwig has been exercising valves along the main between Phase 1 and Argyle Rd; the few problems found have been resolved.
NEW BUSINESS -
Jordan Jones of Ketel Thorstensen presented the results of their audit of 2024 SBHWS operations and management. The audit findings are substantially consistent with prior audits, with the observation that SBHWS has achieved compliance with all debt reserve covenants and thus no associated finding in the 2025 audit. Jones noted that since it is expected that since SBHWS will be utilizing more than $700,000 in federal loan funds during 2025, the audit of 2025 operations and management will require more detailed accounting; no changes in SBHWS accounting will be necessary to support this.
EXECUTIVE SESSION -
Motion by Baird, 2nd by Beard to enter into Executive Session at 1:45; motion passed unanimously.
Motion by Beard, 2nd by Baird to move out of Executive Session at 2:41; motion passed unanimously.
There were three motions arising out of Executive Session. Motion by Krump, 2nd by Nase to recognize the initiative and effort of Dakota Ludwig in seeking training and testing for certifications relating to water distribution by increasing his pay by $1.00 per hour and reimbursing his related cost of materials and fees; motion passed unanimously. Motion by Baird, 2nd by Kowalski to thank the Schwartz brothers with a gift of $500 for their efforts on behalf of SBHWS to address neighbor complaints about the use of Spur Rd for accessing the Argyle water tower; motion passed unanimously. Motion by Nase, 2nd by Krump to authorize Peterson and Wieczorek to send a letter to Bradeen Real Estate and Preston Family Inc reminding them that SBHWS will furnish water for the nine lots north of Hermosa only under the terms of our developer policy and noting that communications from Preston representatives do not yet conform to that requirement; motion passed unanimously.
UPCOMING MEETINGS -
The next meeting of the Southern Black Hills System Board will be Thursday, June 26, 2025 at 1:00 PM at the Crazy Horse Monument in Custer.
Future board meetings will be July 24, August 21, and September 25.
ADJOURNMENT - There being no further business, the vice-chair declared the meeting adjourned at 2:50.
Crazy Horse Monument
Thursday, May 22, 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, May 22, 2025.
Vice-Chairman Smith called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Baird, Beard, Kowalski, Krump, Nase, Smith, and Zolnowsky; Baker and Wick were absent. Others in attendance were manager Don Peterson, counsel Talbot Wieczorek, Jordan Jones of Ketel Thorstenson, and observers Sharon Dickson, Craig LaFollette, and Doug Musser.
AGENDA – Motion by Krump, 2nd by Nase to approve the agenda; motion passed unanimously.
MINUTES - Motion by Beard, 2nd by Baird to approve the minutes of the April 24, 2025 meeting. Motion passed unanimously.
TREASURER’S REPORT – Peterson presented the treasurer’s report for April 2025. The report was reviewed by the board members. The check sequence ending April 30 was check #4664 and beginning May 1 was check #4665. Motion by Beard, 2nd by Baird to approve the treasurer’s report and transfer $15,000 from the regular checking into the RD account; motion passed unanimously.
OLD BUSINESS –
The South Dakota Department of Agriculture and Natural Resources responded to the SBHWS request of $600,000 of additional funding for the Paramount Point / Spring Creek Acres project with notice that they will be recommending an ARPA grant of $500,000 to be awarded at the Water Board’s June meeting; this will raise the total project ARPA grant award to $4,102,432. Andy Bruels requested explicit notice whether SBHWS wished to request the remainder of our request in the form of a State Revolving Fund loan. Peterson noted that the inspection costs for the project were projected to be about $90,000 and could be covered by operating income, so the use of loan funding was not necessary. Motion by Beard, 2nd by Baird authorizing the Chairman to send a letter to DANR stating that SBHWS will not be seeking the remaining $100,000 as an SRF loan; motion passed unanimously.
Managers’ Report
RCS has back-filled the underground storage tank at Paramount Point. The next step is the installation of the pump in the second well, which will then be used to fill the 33,000 gallon tank.
Flatland is looking for a leak in the main installed along Daughenbaugh Rd. Fuller Construction has poured the pillars for the tower base platform.
Dakota Ludwig has been exercising valves along the main between Phase 1 and Argyle Rd; the few problems found have been resolved.
NEW BUSINESS -
Jordan Jones of Ketel Thorstensen presented the results of their audit of 2024 SBHWS operations and management. The audit findings are substantially consistent with prior audits, with the observation that SBHWS has achieved compliance with all debt reserve covenants and thus no associated finding in the 2025 audit. Jones noted that since it is expected that since SBHWS will be utilizing more than $700,000 in federal loan funds during 2025, the audit of 2025 operations and management will require more detailed accounting; no changes in SBHWS accounting will be necessary to support this.
EXECUTIVE SESSION -
Motion by Baird, 2nd by Beard to enter into Executive Session at 1:45; motion passed unanimously.
Motion by Beard, 2nd by Baird to move out of Executive Session at 2:41; motion passed unanimously.
There were three motions arising out of Executive Session. Motion by Krump, 2nd by Nase to recognize the initiative and effort of Dakota Ludwig in seeking training and testing for certifications relating to water distribution by increasing his pay by $1.00 per hour and reimbursing his related cost of materials and fees; motion passed unanimously. Motion by Baird, 2nd by Kowalski to thank the Schwartz brothers with a gift of $500 for their efforts on behalf of SBHWS to address neighbor complaints about the use of Spur Rd for accessing the Argyle water tower; motion passed unanimously. Motion by Nase, 2nd by Krump to authorize Peterson and Wieczorek to send a letter to Bradeen Real Estate and Preston Family Inc reminding them that SBHWS will furnish water for the nine lots north of Hermosa only under the terms of our developer policy and noting that communications from Preston representatives do not yet conform to that requirement; motion passed unanimously.
UPCOMING MEETINGS -
The next meeting of the Southern Black Hills System Board will be Thursday, June 26, 2025 at 1:00 PM at the Crazy Horse Monument in Custer.
Future board meetings will be July 24, August 21, and September 25.
ADJOURNMENT - There being no further business, the vice-chair declared the meeting adjourned at 2:50.
