By Watertown Current - August 6, 2026 in MINUTES OF MUNICIPAL UTILITIES BOARD MEETING
Monday, July 27, 2026
The Municipal Utilities Board convened in regular session at the Watertown Municipal Utilities Board Room 901 Fourth Avenue SW Watertown SD on Monday, July 27, 2026, at 12:00 p.m. with President Dan Brenden presiding.
Board members present: Dan Brenden, Rich Thomas, Chris Carter, Mike Luken and Charlie Larkin (12:02 pm). Board Liaison, member of City Council, Kyle Peters absent. Staff members present: Steve Lehner, Adam Karst, Bert Magstadt, Rod Sutton, Dan LeVasseur, Zeke Hilmoe, Cheryl Mack, Gina Brown, Lisa Pahl and Attorney Vince Foley. Guests: Mark Dunn, Alan Stager, City Manager and Mayor Reid Holien. Media: Steve Jurrens, Northeast Radio SD.
ITEM 8372
Motion by Carter with second by Thomas to approve the agenda.
ITEM 8373
Motion by Luken with second by Thomas to approve minutes of Regular Board Meeting on June 29, 2026. Motion carried.
ITEM 8374
Public Comment – None
ITEM 8375
Motion by Thomas with second by Luken, to authorize the General Manager to execute a locating services contract with Stake Center Locating, LLC, utilizing terms substantially similar to the contract included in the Board packet, for the remainder of 2026 at a rate of $0.52 per linear foot marked, per utility, including service lines. Motion carried.
ITEM 8376
Lehner reviewed the South Dakota Open Meeting Laws per SDCL 1-25-13. This law mandates that the Open Meeting Laws are reviewed annually.
ITEM 8377
This being the time and place set for consideration of bids, the following was presented. Bids for 115 kV Bushings for the Electric Department. This bid was opened Thursday, July 23, 2026, at 1:30 PM by the Watertown Municipal Utilities Staff as authorized by the Board.
115 kV Bushings: One bid was received and upon review and recommendation by Magstadt, motion by Carter with second by Luken to reject bid for failure to meet specs. Motion carried.
ITEM 8378
Open:
a) Larkin provided an update on the APPA Annual Meeting that was held in Boston on June 28-June 30. Larkin gave the conference good reviews, very informative and enjoyed his time with MRES.
ITEM 8379
Magstadt presented the Report on Operations and Projects. Electric Department, Projects Completed this Month: Had 6 outages for a total of 36 unscheduled power outages in 2026, completed underground conversion along 4th Ave. SW between 33rd St and 42nd St, notified by NERC that WMU is no longer BES exempt. Gas Department, the 8” steel pipeline is heated up with natural gas and working on pickling the line with odorant, finished SCADA conversion. Water Department, 5th Ave Water Main Replacement Project, 60% of main is installed, 45% taps in, 1/3 of roads are paved, Rauville Well 35 is installed and Well 37 repairs are done, hauled 83 loads of lime, or 2,656 yards of lime, new Generator installed at Rauville. Engineering Tech,475 one-call locates July 1 to 20, 2026, 580 one-call locates June 2026, completed BNSF Railway crossing permit for gas main project, completed Northern Border Pipeline crossing permit for gas 6” pressure correction, completed SD DOT permit for Gas Department at 10th ave NW.
ITEM 8380
Karst presented the report on Administration and Financial Statements, Purchasing, Accounting and Facilities, Projects in Progress: The 2025 Eide Bailly audit is complete, third auction with Purple Wave for utilities surplus equipment concluded on June 23 with total sales of $156,000 from two 30,000 gallon propane tanks, fourth auction with Purple Wave concluded on July 7 with total sales of $24,400 from one service truck and one service van, fifth auction with Purple Wave concluded on July 21 with total sales of $80,000 from one propane tank. Upcoming Projects: Purple Wave 6th auction for utilities surplus equipment. Customer Service, Key Accomplishments this Month: July bills were mailed on June 26th, customers received bills between June 29 and July 1, and customer portal enrollment has reached 2,234 users. Current Priorities: Continuing staff training on service order processing and meter changes. Human Resources/Risk Management: Compensation & Benefits, completed wage and benefits surveys for MRES and the APPA Utility Survey. Recruiting: New hire Kraig Engen, GIS Technician, effective Friday, July 31. Community Service: Codington Connects – advisory team to bring employer and community awareness regarding substance abuse, mental health, gambling and other addictions. Information Systems: Assisting Customer Service and Accounting with Tyler conversion, normal monthly IT maintenance and troubleshooting along with website stats and top 10 webpages visited.
Statements of Revenue and Expenses and Capital Additions were presented to the Board for review. Year to date net income is $572,286 above budget for the six months ending June 30, 2026. Total Capital Additions are $402,517 under budget for the six months month ending June 30,2026.
ITEM 8381
Motion made by Luken with second by Carter to approve the following verified salary claims and bills. Motion carried unanimously upon roll call vote. Total Watertown Municipal Utilities Net Payroll for July 2026 Plus ACH Payroll Payments $748,878.53. Change: A. Erickson $10,887/mo. effective 7/1/2026, C. Mack $9,783/Mo. effective 7/1/2026, R. Sutten $8,885/Mo. effective 7/1/2026.
Name, Payable Description, Payment Amount
August 3, 2026
ACTIVE HEATING INC ENERGY INCENTIVE REBATE $100.00
ADVANCED ENGINEERING AND ENVIRONMENTAL SERV., LLC CAST IRON WATERMAIN REPLACEMENT $8,411.33
AFLAC ACCIDENT $1,900.92
A-OX WELDING SUPPLY INC SUPPLIES $25.62
APPLICANT PRO SERVICE $708.00
APPLIED INDUSTRIAL TECH INC SUPPLIES $274.60
AQUA-PURE INC SODIUM HYPOCHLORITE $23,201.85
AUTO VALUE WATERTOWN SUPPLIES $922.74
B & G WELDING INC SERVICE – UNIT 28 $1,282.04
BENSON, BRIAN REIMBURSEMENT EXPENSE $517.62
BORDER STATES ELECTRIC SUPPLY TRANSFORMERS AS PER BID $142,372.87
BRISTOL, INC. SERVICE – GAS METER MONITORING $7,211.40
BROWN, GINA L REIMBURSEMENT EXPENSE $30.00
BUTLER MACHINERY CO GENERATOR RENTAL $13,232.45
C & R FIRE SUPPRESSION ANNUAL FIRE EXT. INSPECTION $2,017.20
CARTNEY BEARING & SUPPLY SUPPLIES $96.12
CHASE CARDMEMBER SERVICE CREDIT CARD $12,001.39
CITY OF WATERTOWN DONATION $2,000.00
CODINGTON-CLARK ELECTRIC COOPERATIVE INC WELLFIELD ELECTRIC SERVICE $5,820.76
COMMERCIAL CLEANING SERVICES INC. JANITORIAL SERVICE $3,975.00
CONTROL EQUIPMENT SALES, INC SUPPLIES $1,634.49
CORE & MAIN LP SUPPLIES $331.52
CREATIVE REWARDS SUPPLIES $135.00
CREDIT COLLECTIONS BUREAU COLLECTIONS $141.30
DAKOTA DATA SHRED SHREDDING SERVICE $127.92
DAKOTA DIRECTIONAL LLC SERVICE – ELECTRIC PROJECTS $357,813.62
DAKOTA PUMP & CONTROL CO SERVICE $382.65
DELTA DENTAL OF SD DENTAL INSURANCE $1,568.80
DEPARTMENT OF HEALTH WATER SAMPLES $888.00
DGR ENGINEERING 115 KV TRANSMISSION LINE REBUILD $28,300.00
DISCOUNT SEEDS, INC. SUPPLIES $1,500.00
DSG DAKOTA SUPPLY GROUP SUPPLIES $441.09
DTN, LLC SUBSCRIPTION $584.61
DUININCK INC GRAVEL $4,222.16
DUTTON-LAINSON COMPANY WATER METER, FLANGE KIT $3,483.80
EACHEN INC SERVICE – WTP $2,595.92
EIDE BAILLY LLP 2025 AUDIT FINAL BILL $3,214.37
ELITE DRAIN AND SEWER CLEANING SERVICE $195.00
EMBERLINE PRESS, INC. POSTAGE & MAILING $419.16
ENGELSTAD ELECTRIC COMPANY SERVICE – ELECTRIC $10,096.70
EQUITABLE VISION INSURANCE $221.80
ERICKSON, AARON REIMBURSEMENT EXPENSE $2,353.54
ETHANOL PRODUCTS LLC BULK CO2 $2,270.58
FAST THREADS SUPPLIES $160.00
FASTENAL COMPANY SUPPLIES $875.44
FEDERAL EXPRESS CORP SERVICE $25.72
FLAGSHOOTER LLC SUPPLIES $2,078.58
FLOW CONTROL AUTOMATION INC. SERVICE $875.00
FOLEY AND FOLEY LAW OFFICE, PC JUNE LEGAL FEES $2,472.50
HALME, INC. CAST IRON WATERMAIN REPLACEMENT $756,960.95
HILMOE, ZEKE REIMBURSEMENT EXPENSE $155.15
HUMAN SERVICE AGENCY ENERGY INCENTIVE REBATE $2,586.95
IBEW LOCAL 426 UNION DUES $4,784.00
INFOSEND, INC. POSTAGE & MAILING $12,997.64
INTERSTATE ALL BATTERY CENTER SUPPLIES $1,418.20
J H LARSON COMPANY SUPPLIES $2,230.23
JEFF STADHEIM ENERGY INCENTIVE REBATE $4,197.85
JOE MEDANICH ASPHALT SERVICES ASPHALT SERVICES $7,755.12
JORGENSON & OLSON ASPHALT MAINTENANCE, LLC ASPHALT SERVICES $20,838.29
JUSTIN’S LAWN & TREE SERVICE STUMP REMOVAL SERVICES $5,790.00
KARST, ADAM REIMBURSEMENT EXPENSE $595.00
LEHNER, STEVE REIMBURSEMENT EXPENSE $427.14
LEVEL CONTRACTING LLC LEAD SERVICE LINE REPLACEMENT $15,798.00
LL & SONS EXCAVATING INC SERVICE – WELLFIELD PROJECT $21,675.00
LOCATORS & SUPPLIES INC SERVICE $458.49
LOVELIS, WAYNE REIMBURSEMENT EXPENSE $348.75
LYLE SIGNS INC SUPPLIES $206.84
MACKSTEEL WAREHOUSE INC SUPPLIES $135.81
MAC’S HARDWARE SUPPLIES $356.99
MADISON NATIONAL LIFE INSURANCE CO. INC. LIFE INSURANCE – STAFF $48.00
MAGSTADT, BERT REIMBURSEMENT EXPENSE $126.88
MCKEEVER INC SUPPLIES $357.00
MEIER, MARK REIMBURSEMENT EXPENSE $54.35
MENARDS INC SUPPLIES $1,886.53
MERTZ FENCING FENCING SERVICE – UPTOWN SUB STATION $6,732.00
MET LIFE LIFE INSURANCE $1,379.49
METERING & TECHNOLOGY SOLUTIONS SUPPLIES $259.04
MIDCONTINENT COMMUNICATIONS INTERNET, CABLE & PHONE SERVICE $1,913.85
MILBANK WINWATER WORKS SUPPLIES $595.98
MINNESOTA MUNICIPAL UTILITIES ASSN SAFETY PROGRAM $9,987.50
MISSOURI RIVER ENERGY SERVICES SERVICE $1,500.00
MUNICIPAL UTILITIES – PC REPLENISH PETTY CASH $418.89
MUNICIPAL UTILITIES-REFUND ACCT REFUNDS OF CREDITS ON ACCOUNTS $24,222.66
NAPA CENTRAL SUPPLIES $59.51
NELSON TECHNOLOGIES INC AQUEOUS GLYCOL BULK REMOVAL $25,428.24
OFFICE OF ENERGY ASSISTANCE REFUND OF CREDIT ON ACCOUNT $109.28
OFFICE PEEPS SUPPLIES $5,910.30
O’REILLY AUTOMOTIVE INC SUPPLIES $255.62
PETE LIEN & SONS BULK LIME $54,502.09
PHEASANTLAND INDUSTRIES SAFETY CLOTHING $333.28
POMP’S TIRE SERVICE, INC. SUPPLIES $163.91
PRINT ‘EM NOW INC SUPPLIES $61.00
RELIABANK DAKOTA FLEX DC $7,381.53
RESCO SUPPLIES $1,100.00
RON’S SAW SALES SERVICE $233.91
RUNNING’S SUPPLY INC SUPPLIES $194.29
SD ONE CALL LOCATES $623.70
SD PUBLIC ASSURANCE ALLIANCE INSURANCE – 2026 CHEVY SILVERADO 3500HD $46.18
SDSU FOUNDATION ACCT #70507 CENTER FOR POWER SYSTEMS STUDIES $550.00
SDWWA TRAINING EXPENSE $450.00
SIOUX VALLEY CO-OP FUEL, SUPPLIES $11,632.02
SIOUX VALLEY ENVIRONMENTAL, INC. CHEMICAL EQUIPMENT – WTP $19,850.00
STAN HOUSTON EQUIP CO RENTAL $832.95
STAR LAUNDRY SERVICE $598.36
STEFFL DRILLING & PUMP INC SERVICE – NEW WELL #35 $1,505.10
STUART C IRBY CO SUPPLIES $3,004.68
SUTTON LAWN & SNOW LLC LAWN CARE $3,600.45
TITAN MACHINERY- WTN SUPPLIES $526.98
TOSHIBA FINANCIAL SERVICES COPIER LEASE $581.18
TRAV’S OUTFITTER SAFETY CLOTHING $1,395.86
TWOTREES TECHNOLOGIES MONTHLY SOFTWARE MAINTENANCE $1,218.75
ULINE INC SUPPLIES $144.19
USA BLUEBOOK SUPPLIES $3,550.45
WATERTOWN CURRENT LLC PUBLISHINGS $216.97
WATERTOWN DEVELOPMENT COMPANY INDUSTRIAL DEVELOPMENT EXPENSE $8,690.00
WATERTOWN FORD CHRYSLER SUPPLIES $517.50
WATERTOWN UNITED WAY United Way $217.50
WATERTOWN WHOLESALE INC SUPPLIES $126.00
WAYTEK INC SUPPLIES $62.18
WESCO DISTRIBUTION INC TRANSFORMER BASEMENTS $18,011.58
WILL BIERSCHBACH ENERGY INCENTIVE REBATE $400.00
WW TIRE SERVICE INC SUPPLIES $495.00
TOTAL $1,739,290.29
Total July 2026 $1,739,290.29, Transfer to City’s General Fund $127,841.00, Muni Utilities Electric Water Gas $58,449.96; Missouri River Energy Services Power $2,593,756.94; BP Canada Energy Marketing Natural Gas $47,713.88; Dept. of Revenue Sales/Excise Tax $225,019.66; CPEP #3 Natural Gas $8,482.50, CPEP #4 Natural Gas $12,293.25, CPEP #5 Natural Gas $27,819.00, CPEP #3 Hedge $6,809.46, CPEP #4 Hedge $2,273.85.
ITEM 8382
Brenden turned the meeting over to General Manger Steve Lehner and Lehner noted that Mark Dunn was appointed to the Board by Mayor Reid Holien for a five-year term on the Board. Lehner presented resolution of appreciation to outgoing Board Member Rich Thomas. Motion by Carter with second by Luken to approve the resolution for Rich Thomas. Motion carried.
Lehner requested reorganization of the Board. Motion by Carter with second by Brenden to nominate Mike Luken for President. Motion carried. Motion by Carter with a second by Brenden to nominate Charlie Larkin for Vice President. Motion carried.
ITEM 8383
Pursuant to SDCL 1-25-2 (6)(d) Larkin moved with second by Carter to move to Executive Session. No action is expected when coming out of Executive Session. Motion carried.
Board President Luken declared Executive Session done and they reconvened to regular session.
Motion by Larkin with second by Brenden to adjourn. Motion carried.
The Watertown Municipal Utilities does not discriminate in employment opportunities or provision of services on-the basis of race, color, religion, sex, national origin, age, disability, or any other characteristic protected by law.
Dated at Watertown, South Dakota this 27th, day of July,2026.
ATTEST: ______________________
Lisa Pahl
Board Secretary
Municipal Utilities Board
_____________________________
Michael Luken
Board President
Municipal Utilities Department
Published once on August 6, 2026, at the total approximate cost of $144.14 and may be viewed free of charge at www.sdpublicnotices.com and www.watertowncurrent.com.