Minutes of Regular Meeting of Southern Black Hills Water System Board (As Amended)
Crazy Horse Monument
Thursday, May 23, 2024
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 23, 2024.
Chairman Wick called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Wick, Baird, Beard, Krump, Nase, Seaboldt, Smith, and Zolnowsky; due to the loss of Kraus the Board has an open seat. Others in attendance were Don Peterson.
AGENDA – Motion by Krump, 2nd by Seaboldt to approve the agenda. Motion passed unanimously.
PUBLIC QUESTIONS AND COMMENTS - Twenty-three individuals representing sixteen customer accounts were present for comments. Those that spoke referenced the increase in rates needed to satisfy the DANR Water Board’s loan condition for their additional funding award of March 28 for the Paramount Point / Spring Creek Acres project; DANR’s specific request was for a resolution to address their estimate that SBHWS needed a rate increase of $10 per month per account. The speakers urged the Board to accelerate the schedule of rate leveling for all customers, with some advising that the project should not go forward until rates had been made uniform for all customers Others noted that the Board has not communicated its informal plans on future rate changes and pointed to opportunities for the Board to improve communication.
MINUTES - Motion by Smith, 2nd by Seaboldt to approve the minutes of the April 25, 2024 meeting. Motion passed unanimously.
TREASURER’S REPORT – Don Peterson presented the treasurer’s report for April 2024. The report was reviewed by the board members. Motion by Krump, 2nd by Seaboldt to approve the treasurer’s report and transfer $15,000 from the regular checking into the RD account. Motion passed unanimously. The check sequence ending April 30 was check #4430 and beginning May 1 was check #4431.
OLD BUSINESS –
Managers’ Report
The Phase 2 subsystem leak investigation was narrowed to Hart Rd. There was no surface indication of the leak and five days of digging could not identify the leak location. SDARWS arrived to provide technical assistance via listening equipment and quickly pinpointing the loss point: a hole in a two-inch service line due to an underlying rock, with the 1.5 million gallons having been lost into underground cavities. Fixed May 17.
Due to deterioration of a connector between the fuel tank and a backup generator at Paramount Point, the entire content of the propane tank was lost. The connector has been replaced and the tank refilled.
McGwire Iron is in the process of addressing the inverted input and output elbows in the storage tank at the office site. This will improve the effective storage capacity at the top of the Hwy 385 line.
Jerry Styles of Hermosa has property to the west of town that he may sell, and would provide an easement to SBHWS for a water service corridor.
SBHWS made its required 2023 service report to the Forest Service.
Peterson distributed copies of the Quarter 2, 2024 edition of the Western Dakota Regional Water System Newsletter.
NEW BUSINESS -
The budget committee meeting of April 30 did not result in a consensus recommendation for rate adjustments to address DANR’s conditions for the March 28 loan award..
Motion by Beard, 2nd by Krump to enter into Executive Session at 2:47; motion passed unanimously.
Motion by Beard, 2nd by Baird to move out of Executive Session at 3:25; 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 June 20, 2024 at 1:00 PM at the Crazy Horse Monument in Custer. Future meetings are scheduled for July 25, August 22, and September 26.
ADJOURNMENT - Motion by Krump, 2nd by Beard to adjourn the meeting; there being no further business, the chair declared the meeting adjourned at 3:30.
Crazy Horse Monument
Thursday, May 23, 2024
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 23, 2024.
Chairman Wick called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Wick, Baird, Beard, Krump, Nase, Seaboldt, Smith, and Zolnowsky; due to the loss of Kraus the Board has an open seat. Others in attendance were Don Peterson.
AGENDA – Motion by Krump, 2nd by Seaboldt to approve the agenda. Motion passed unanimously.
PUBLIC QUESTIONS AND COMMENTS - Twenty-three individuals representing sixteen customer accounts were present for comments. Those that spoke referenced the increase in rates needed to satisfy the DANR Water Board’s loan condition for their additional funding award of March 28 for the Paramount Point / Spring Creek Acres project; DANR’s specific request was for a resolution to address their estimate that SBHWS needed a rate increase of $10 per month per account. The speakers urged the Board to accelerate the schedule of rate leveling for all customers, with some advising that the project should not go forward until rates had been made uniform for all customers Others noted that the Board has not communicated its informal plans on future rate changes and pointed to opportunities for the Board to improve communication.
MINUTES - Motion by Smith, 2nd by Seaboldt to approve the minutes of the April 25, 2024 meeting. Motion passed unanimously.
TREASURER’S REPORT – Don Peterson presented the treasurer’s report for April 2024. The report was reviewed by the board members. Motion by Krump, 2nd by Seaboldt to approve the treasurer’s report and transfer $15,000 from the regular checking into the RD account. Motion passed unanimously. The check sequence ending April 30 was check #4430 and beginning May 1 was check #4431.
OLD BUSINESS –
Managers’ Report
The Phase 2 subsystem leak investigation was narrowed to Hart Rd. There was no surface indication of the leak and five days of digging could not identify the leak location. SDARWS arrived to provide technical assistance via listening equipment and quickly pinpointing the loss point: a hole in a two-inch service line due to an underlying rock, with the 1.5 million gallons having been lost into underground cavities. Fixed May 17.
Due to deterioration of a connector between the fuel tank and a backup generator at Paramount Point, the entire content of the propane tank was lost. The connector has been replaced and the tank refilled.
McGwire Iron is in the process of addressing the inverted input and output elbows in the storage tank at the office site. This will improve the effective storage capacity at the top of the Hwy 385 line.
Jerry Styles of Hermosa has property to the west of town that he may sell, and would provide an easement to SBHWS for a water service corridor.
SBHWS made its required 2023 service report to the Forest Service.
Peterson distributed copies of the Quarter 2, 2024 edition of the Western Dakota Regional Water System Newsletter.
NEW BUSINESS -
The budget committee meeting of April 30 did not result in a consensus recommendation for rate adjustments to address DANR’s conditions for the March 28 loan award..
Motion by Beard, 2nd by Krump to enter into Executive Session at 2:47; motion passed unanimously.
Motion by Beard, 2nd by Baird to move out of Executive Session at 3:25; 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 June 20, 2024 at 1:00 PM at the Crazy Horse Monument in Custer. Future meetings are scheduled for July 25, August 22, and September 26.
ADJOURNMENT - Motion by Krump, 2nd by Beard to adjourn the meeting; there being no further business, the chair declared the meeting adjourned at 3:30.
