Minutes of Regular Meeting of Southern Black Hills Water System Board
Crazy Horse Monument
Friday, September 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 Friday, September 26, 2025.
Chairman Wick called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Wick, Baker, Baird, Krump, Nase, and Zolnowsky; Beard, Kowalski, and Smith were absent. Others in attendance were manager Don Peterson, and observer Doug Musser.
AGENDA – Motion by Nase, 2nd by Krump to approve the agenda; motion passed unanimously.
MINUTES - Motion by Baird, 2nd by Krump to approve the minutes of the August 21, 2025 meeting. Motion passed unanimously.
TREASURER’S REPORT – Peterson presented the treasurer’s report for August 2025. The report was reviewed by the board members. The check sequence ending August 31 was check #4754 and beginning September 1 was check #4755. Motion by Baird, 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
A leak in the main along Hwy 385 caused a loss of pressure and service to Phase 1 customers early on September 21; Phase 1 and 2 customers were notified of the problem and asked to conserve water. Two contractors were able to respond and expose the affected pipe section which had split on the bottom side due to a rock beneath. The 40 foot section was replaced by two 20 foot section and a valve. The valve will provide better isolation in the event of future problems along the main along Hwy 385; previous leaks due to broken pipe had occurred along Hwy 385 in 2015 and 2020. Management expressed appreciation for the generous response from Phase 2 customers to the request for conservative use.
Management reported on the progress of theParamount Point / Spring Creek Acres project. The water tower tank is awaiting subcontractor McGwire to erect the tower on the completed platform and erection is expected to be completed by the end of 2025; completion of all aspects of the tower is due in June 2026. The new pump station at Paramount Point was moved into place in September, connection to utilities, the storage tank at Paramount Point, and service lines is in progress. Flatland Industries is due to achieve substantial completion of lines connecting Paramount Point, Spring Creek Acres, and the water tower in October.
Greg Neugebauer is in the process of selling 60 acres south of Paramount Point (Marie St) to a developer who plans to develop 240 lots; water service from SBHWS has been requested and parties have been advised of the SBHWS developer policy.
Management investigated South Dakota Association of Rural Water Systems apprenticeship program as a training vehicle for new staff. The training component of that program is substantially the same as that already being used by SBHWS. However, the rationale for the apprenticeship program is the recruitment of individuals to pursue a career in water and wastewater management while SBHWS already has such staff.
The Preston family sold nine lots north of Hermosa predicated on obtaining water service which SBHWS agreed to provide under our developer policy. Service will require an easement on neighboring property previously owned by the Preston family, but the drafted easement was not filed. SBHWS cannot provide service until the family and the current owner have negotiated an appropriate access and construction easement.
Only one petition for the election of a director was taken out and filed with the necessary signatures. The election of director at the annual member meeting will be limited to acceptance of the single applicant.
NEW BUSINESS -
The annual SDARWS Leadership Conference will take place in Pierre November 19-20. Multiple past attendees spoke of the value of SBHWS directors participating in the conference, and specifically encouraged those who had not previously attended to do so. Baker expressed interest in going and Peterson would check with others not present.
EXECUTIVE SESSION -
Motion by Krump, 2nd by Baker to enter into Executive Session at 1:54; motion passed unanimously.
Motion by Krump, 2nd by Baird to move out of Executive Session at 2:24; motion passed unanimously.
There was one motion arising out Executive Session: motion by Baird, 2nd by Baker to accept the budget committee’s recommendations for the 2026 budget, including the resolution to set the base member rates in accordance with the Projected Rate Schedule as published in August 2024 and water usage rates to remain unchanged. Motion passed unanimously.
Category Monthly Base Rate for 2026
Phase 1 & 2 Residential $112
Phase 1 & 2 Pasture Tap $96
Paramount Point $85
Spring Creek Acres $85
Rushmore Ranch $96
Usage Level Minimum Up to Usage Level Rate for each additional 1000 gallons
0 gallons 10,000 gallons $5.00
10,000 gallons 20,000 gallons $5.25
20,000 gallons unlimited $5.50
UPCOMING MEETINGS -
The next meeting of the Southern Black Hills System Board will be Friday, October 23, 2025 at 1:00 PM at the Crazy Horse Monument in Custer. The annual member meeting is scheduled for October 2, 2025 at 6:30 PM at the Pringle Community Center.
Future board meetings will be November 25 and December 18.
ADJOURNMENT - There being no further business, the chair declared the meeting adjourned at 2:29.
Crazy Horse Monument
Friday, September 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 Friday, September 26, 2025.
Chairman Wick called the meeting to order at approximately 1:00 p.m.
ROLL CALL – Board Members present were Wick, Baker, Baird, Krump, Nase, and Zolnowsky; Beard, Kowalski, and Smith were absent. Others in attendance were manager Don Peterson, and observer Doug Musser.
AGENDA – Motion by Nase, 2nd by Krump to approve the agenda; motion passed unanimously.
MINUTES - Motion by Baird, 2nd by Krump to approve the minutes of the August 21, 2025 meeting. Motion passed unanimously.
TREASURER’S REPORT – Peterson presented the treasurer’s report for August 2025. The report was reviewed by the board members. The check sequence ending August 31 was check #4754 and beginning September 1 was check #4755. Motion by Baird, 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
A leak in the main along Hwy 385 caused a loss of pressure and service to Phase 1 customers early on September 21; Phase 1 and 2 customers were notified of the problem and asked to conserve water. Two contractors were able to respond and expose the affected pipe section which had split on the bottom side due to a rock beneath. The 40 foot section was replaced by two 20 foot section and a valve. The valve will provide better isolation in the event of future problems along the main along Hwy 385; previous leaks due to broken pipe had occurred along Hwy 385 in 2015 and 2020. Management expressed appreciation for the generous response from Phase 2 customers to the request for conservative use.
Management reported on the progress of theParamount Point / Spring Creek Acres project. The water tower tank is awaiting subcontractor McGwire to erect the tower on the completed platform and erection is expected to be completed by the end of 2025; completion of all aspects of the tower is due in June 2026. The new pump station at Paramount Point was moved into place in September, connection to utilities, the storage tank at Paramount Point, and service lines is in progress. Flatland Industries is due to achieve substantial completion of lines connecting Paramount Point, Spring Creek Acres, and the water tower in October.
Greg Neugebauer is in the process of selling 60 acres south of Paramount Point (Marie St) to a developer who plans to develop 240 lots; water service from SBHWS has been requested and parties have been advised of the SBHWS developer policy.
Management investigated South Dakota Association of Rural Water Systems apprenticeship program as a training vehicle for new staff. The training component of that program is substantially the same as that already being used by SBHWS. However, the rationale for the apprenticeship program is the recruitment of individuals to pursue a career in water and wastewater management while SBHWS already has such staff.
The Preston family sold nine lots north of Hermosa predicated on obtaining water service which SBHWS agreed to provide under our developer policy. Service will require an easement on neighboring property previously owned by the Preston family, but the drafted easement was not filed. SBHWS cannot provide service until the family and the current owner have negotiated an appropriate access and construction easement.
Only one petition for the election of a director was taken out and filed with the necessary signatures. The election of director at the annual member meeting will be limited to acceptance of the single applicant.
NEW BUSINESS -
The annual SDARWS Leadership Conference will take place in Pierre November 19-20. Multiple past attendees spoke of the value of SBHWS directors participating in the conference, and specifically encouraged those who had not previously attended to do so. Baker expressed interest in going and Peterson would check with others not present.
EXECUTIVE SESSION -
Motion by Krump, 2nd by Baker to enter into Executive Session at 1:54; motion passed unanimously.
Motion by Krump, 2nd by Baird to move out of Executive Session at 2:24; motion passed unanimously.
There was one motion arising out Executive Session: motion by Baird, 2nd by Baker to accept the budget committee’s recommendations for the 2026 budget, including the resolution to set the base member rates in accordance with the Projected Rate Schedule as published in August 2024 and water usage rates to remain unchanged. Motion passed unanimously.
Category Monthly Base Rate for 2026
Phase 1 & 2 Residential $112
Phase 1 & 2 Pasture Tap $96
Paramount Point $85
Spring Creek Acres $85
Rushmore Ranch $96
Usage Level Minimum Up to Usage Level Rate for each additional 1000 gallons
0 gallons 10,000 gallons $5.00
10,000 gallons 20,000 gallons $5.25
20,000 gallons unlimited $5.50
UPCOMING MEETINGS -
The next meeting of the Southern Black Hills System Board will be Friday, October 23, 2025 at 1:00 PM at the Crazy Horse Monument in Custer. The annual member meeting is scheduled for October 2, 2025 at 6:30 PM at the Pringle Community Center.
Future board meetings will be November 25 and December 18.
ADJOURNMENT - There being no further business, the chair declared the meeting adjourned at 2:29.
