By Watertown Current - July 9, 2026 in MINUTES OF MUNICIPAL UTILITIES BOARD MEETING
Monday, June 29, 2026
The Municipal Utilities Board convened in regular session at the Watertown Municipal Utilities Board Room 901 Fourth Avenue SW Watertown SD on Monday, June 29, 2026, at 12:00 p.m. with President Dan Brenden presiding.
Board members present: Dan Brenden, Rich Thomas (12:06pm), Chris Carter, Mike Luken with Charlie Larkin absent. Board Liaison, member of City Council, Kyle Peters absent. Staff members present: Steve Lehner, Adam Karst, Bert Magstadt, Aaron Erickson, Wayne Lovelis, Rod Sutton, Dan LeVasseur, Zeke Hilmoe, Cheryl Mack, Gina Brown, Lisa Pahl and Attorney Vince Foley. Guests: Alan Stager, City Manager. Media: Roger Whittle, Watertown Current and Steve Jurrens, Northeast Radio SD.
ITEM 8360
Motion by Carter with second by Luken to approve the agenda.
ITEM 8361
Motion by Luken with second by Carter to approve minutes of Regular Board Meeting on May 27, 2026. Motion carried.
ITEM 8362
Public Comment – None
ITEM 8363
Motion by Luken with second by Carter to Authorize to Call for Bids 115kV bushings for East Substation. Motion carried
ITEM 8364
This being the time and place set for consideration of bids, the following was presented. Bids for Hydrants – Water Department. These bids were opened Thursday, June 18, 2026, at 1:30 PM by the Watertown Municipal Utilities Staff as authorized by the Board.
HYDRANTS: Two bids were received and upon review and recommendation by Magstadt, motion by Carter with second by Luken to award bid to low valid bidder Ferguson, Fargo, ND for a total of $135,892.60. Motion carried.
ITEM 8365
Motion by Luken with second by Thomas to Declare as Surplus Engineering Fees for the Peak Shaving Plant Asset #339. Motion carried.
ITEM 8366
Magstadt led a discussion regarding third-party locating services. On June 10, 2026, Blue Peak held a meeting at City Hall to discuss plans to overlay the town with fiber during the remainder of 2026 and finishing in 2027. Magstadt noted the need to hire additional locating services to support this project. Magstadt stated that he will begin meeting with three different contractors this week. He also said that, as options are narrowed down, a special Board meeting may be required in July to approve a contract with a third-party locating service.
ITEM 8367
Open:
- a) Lehner presented the Bill Stuffers: Two-sided Cookin’ on Kampeska and Preventing Storm Water Pollution.
- b) Lehner provided an update on the MECA meeting he attended in Pierre from June 15–17, 2026. On June 15, attendees toured the Oahe Dam. Jim Horan delivered the Administration Report. Gayle Nansel, Acting Under Regional Manager of the Upper Great Plains, also spoke. Bart Barnhardt, Rocky Mountain Regional Manager, shared updates from his region, and Mike Ferguson provided a report on Western States funding levels. Representatives from the U.S. Army Corps of Engineers and the Bureau of Reclamation discussed projects funded by customers and provided additional updates.
ITEM 8368
Magstadt presented the Report on Operations and Projects. Electric Department, Projects Completed this Month: Had 6 outages for a total of 30 unscheduled power outages in 2026, removed three-phase transformers from basement of old Guest House property, wrecked out overhead three-phase line on 6th St. N.W. (North of Elks Lodge). Projects in Progress: Overhead to underground conversion on 42nd St. S.W. from 4th Ave. to Golf Course Road. Gas Department, Projects Completed this Month: Connected the 6” plastic to the NNG 8” steel line, Dakota Directional installed 1332’ of 2” plastic on west side of Lake Pelican, Dakota Directional installed 691’ of 6” plastic to start the pressure correction. Water Department Projects Starting this Month: One lead service line replacement. Projects in Progress: 5th Ave Water Main Replacement Project, main is all in, still need to remove hydrant, Rauville Well 35 and 37 should be online this week. Engineering Tech, Projects Completed this Month: Promoted Zeke Hilmoe to the Engineering Superintendent and interviewed and hired Kraig Engen as GIS Tech, 368 one-call locates June 1 to 20, 2026, 640 one-call locates May 2026, compaction tests on Halme Cast Water Replacement (75 tests completed this month).
ITEM 8369
Karst presented the report on Administration and Financial Statements, Purchasing, Accounting and Facilities, Projects in Progress: The second auction for our surplus equipment concluded on May 26 with total sales of $212,500 from 362 bids across 6 items, two of the eight 30,000- gallon propane tanks sold on Purple Wave auction were successfully removed from the Peak Shaving Plant property. Projects in Progress: 2025 Eide Bailly audit. Upcoming Projects: 2026 MRES Electric Rate Study. Customer Service, Key Accomplishments this Month: June bills were mailed on May 26th and 27th, customers received bills between June 1 and June 4, delinquent notices were printed and mailed through our new vendor, Infosend on Monday, June 15th, customers received them between June 18th – 19th. Current Priorities: We are improving our shut-off day process by moving our lists to a shared computer document, allowing for improved access and accuracy. Upcoming Milestones: July bills were mailed out on June 26th. Human Resources/Risk Management: Compensation & Benefits, completed wage and benefits surveys for MMUA, AWWA, and Marshall Municipal Utilities, recruiting, onboarding summer temps, promoted Zeke Hilmoe from Utility System Engineer to Engineering Superintendent, posted GIS Technician position internally with no internal candidates applying, one external candidate, offer has been made and accepted by Kraig Engen. CDL Changes, continue to monitor employees to ensure CDL holders update their SD driver’s license by July 1. Information Systems: Deployed new wireless infrastructure, building Tyler reports for Customer Service and Accounting, assisting Customer Service 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 $323,779 above budget for the five months ending May 31, 2026. Total Capital Additions are $453,838 under budget for the five months month ending May 31,2026.
ITEM 8370
Motion made by Carter with second by Luken to approve the following verified salary claims and bills. Motion carried unanimously upon roll call vote. Total Watertown Municipal Utilities Net Payroll for June 2026 Plus ACH Payroll Payments $773,362.03. Change: Z. Hilmoe $9,811/mo. effective 6/1/2026, New: E. Gollnick $20.00/hr. effective 6/1/2026, New: S. Leitheiser $21.25/hr. effective 6/1/2026, New: I. Meseberg $20.00/hr. effective 5/26/2026. Term: M. Meier effective 5/29/2026.
Name Payable Description Payment Amount
July 1, 2026
ADV. ENGINEER. AND ENVIRON. SERVICES, LLC CAST IRON WATERMAIN REPLACEMENT $9,940.75
AFLAC ACCIDENT $1,900.92
AGWRX COOPERATIVE – PELICAN SUPPLIES $115.00
A-OX WELDING SUPPLY INC SUPPLIES $405.05
APPLICANT PRO SERVICE $236.00
AQUA-PURE INC SODIUM HYPOCHLORITE $14,696.24
AUTO VALUE WATERTOWN SUPPLIES $497.98
AUTOMATIC TRANSMISSION & GEAR SERVICE – OLD UNIT 2 $5,830.96
BELL LUMBER & POLE CO POLES $17,721.00
BENDIX IMAGING INC SUPPLIES $344.96
BENSON, BRIAN REIMBURSEMENT EXPENSE $787.40
BLACKBURN MFG COMPANY FLAGS $3,595.96
BORDER STATES ELECTRIC SUPPLY ARRESTERS, SUPPLIES $25,074.61
BROWN, GINA L REIMBURSEMENT EXPENSE $125.93
BUTLER MACHINERY CO GENERATOR RENTAL $4,923.15
CHASE CARDMEMBER SERVICE CREDIT CARD $5,863.57
CITY OF WATERTOWN MISCELLANEOUS FEES $53.76
COATING SPECIALTIES LLC SERVICE – GAS PIPE $24,234.74
CODINGTON COUNTY REGISTER OF DEEDS EASEMENT $42.00
CODINGTON-CLARK ELECTRIC COOP. INC WELLFIELD ELECTRIC SERVICE $6,584.52
COLOURS, INC. SUPPLIES $69.57
COMMERCIAL CLEANING SERVICES INC. JANITORIAL SERVICE $3,975.00
CORE & MAIN LP HYDRANTS AS PER BID $62,961.03
CREDIT COLLECTIONS BUREAU COLLECTIONS $109.42
DAKOTA DATA SHRED SHREDDING SERVICE $113.33
DAKOTA DIRECTIONAL LLC SERVICE – ELECTRIC PROJECTS $205,615.70
DANR ANNUAL ENVIRONMENTAL FEE $7,000.00
DELTA DENTAL OF SD DENTAL INSURANCE $1,568.80
DEPARTMENT OF HEALTH WATER SAMPLES $832.00
DGR ENGINEERING SERVICE – E. SUBSTATION BREAKER REPLACE. $4,000.00
DITCH WITCH OF SOUTH DAKOTA, INC SUPPLIES $120.95
DSG DAKOTA SUPPLY GROUP SUPPLIES $336.50
DTN, LLC SUBSCRIPTION $584.61
DUININCK INC GRAVEL & CONCRETE SAND $3,108.39
EASTSIDE EQUIPMENT SUPPLIES $600.00
EIDE BAILLY LLP 2025 AUDIT PROGRESS BILLING $10,473.75
EMBERLINE PRESS, INC. POSTAGE & MAILING $14,400.00
ENERGY ECONOMICS INC SERVICE $731.93
EQUITABLE VISION INSURANCE $221.80
ERICKSON, AARON REIMBURSEMENT EXPENSE $65.98
ETHANOL PRODUCTS LLC BULK CO2 $1,619.22
FAST THREADS SUPPLIES $23.50
FASTENAL COMPANY SUPPLIES $131.99
FEDERAL EXPRESS CORP SERVICE $106.99
FOLEY AND FOLEY LAW OFFICE, PC MAY LEGAL SERVICES $1,180.00
FRONTIER PRECISION INC SUPPLIES $361.00
GRAINGER SUPPLIES $860.61
GROEBNER ROAD VALVE BOXES $3,931.82
HALME, INC. CAST IRON WATERMAIN REPLACEMENT $550,048.81
HAWKINS, INC. HYDROFLUOSILICIC ACID $5,441.12
HILMOE, ZEKE REIMBURSEMENT EXPENSE $848.49
IBEW LOCAL 426 UNION DUES $4,784.00
INGERSOLL RAND COMPANY SERVICE $859.20
J H LARSON COMPANY SUPPLIES $3,274.78
JOHNSON CONTROLS BUILD. SOLUTIONS INC. SERVICE $759.77
JORGENSON & OLSON ASPHALT MAINT., LLC ASPHALT SERVICES $5,266.85
JURGENS PRINTING INC SUPPLIES $885.00
JUSTIN’S LAWN & TREE SERVICE SERVICE $1,905.00
KARST, ADAM REIMBURSEMENT EXPENSE $2,094.25
KNOWBE4 TRAINING EXPENSE $4,587.60
LAKE AREA DOOR SUPPLIES $216.00
LEHNER, STEVE REIMBURSEMENT EXPENSE $567.21
LEVEL CONTRACTING LLC LEAD SERVICE LINE REPLACEMENT $5,740.00
LL & SONS EXCAVATING INC LEAD SERVICE LINE REPLACEMENT $18,596.97
LOCATORS & SUPPLIES INC SUPPLIES $254.18
LOCKSMITH & MORE LLC SERVICE $185.00
LOVELIS, WAYNE REIMBURSEMENT EXPENSE $162.52
MACK, CHERYL REIMBURSEMENT EXPENSE $302.05
MACKSTEEL WAREHOUSE INC SUPPLIES $42.16
MAC’S HARDWARE SUPPLIES $348.83
MADISON NATIONAL LIFE INSURANCE CO. INC. LIFE INSURANCE – STAFF $48.00
MAGSTADT, BERT REIMBURSEMENT EXPENSE $229.83
MARCO TECHNOLOGIES LLC MFILES CONTRACT $13,158.18
MCKEEVER INC SUPPLIES $327.00
MEIER, MARK REIMBURSEMENT EXPENSE $148.13
MENARDS INC SUPPLIES $1,523.20
MET LIFE LIFE INSURANCE $1,379.49
MIDCONTINENT COMMUNICATIONS INTERNET, CABLE & PHONE SERVICE $1,900.89
MISSOURI RIVER ENERGY SERVICES SUPPLIES $30.00
MISSOURI RIVER ENERGY SERVICES TRAINING EXPENSE $150.00
MUNICIPAL UTILITIES – PC REPLENISH PETTY CASH $727.58
MUNICIPAL UTILITIES-REFUND ACCT REFUNDS OF CREDITS ON ACCOUNTS $11,082.88
NAPA CENTRAL SUPPLIES $352.67
NELSON TECHNOLOGIES INC REGULATORS $5,902.40
NIPPON SANSO MATHESON INC SUPPLIES $395.62
OFFICE PEEPS SUPPLIES $585.92
O’REILLY AUTOMOTIVE INC SUPPLIES $19.08
PALMER WAHL INSTRUMENTS INC. SUPPLIES $1,354.82
PAYMENTUS GROUP INC. SERVICE $9.95
PETE LIEN & SONS BULK LIME $71,152.32
POLLARD WATER SUPPLIES $554.85
POMP’S TIRE SERVICE, INC. SERVICE $992.29
RC FIRST AID SUPPLIES $121.50
RELIABANK DAKOTA FLEX DC $7,381.53
RESCO TRANSFORMERS AS PER BID $85,746.00
SAINA WATERTOWN LLC DEPOSIT REFUND $33,350.00
SANFORD WTN OCCUPATIONAL MEDICINE SERVICE $344.00
SCHWEITZER ENGINEER. LABORATORIES, INC. SUPPLIES $300.88
SD ONE CALL LOCATES $684.60
SD PUBLIC UTILITIES COMMISSION PIPELINE SAFETY ASSESSMENT $5,022.74
SIOUX VALLEY CO-OP FUEL, SUPPLIES $12,112.65
SITEWORKS, INC. 5TH AVE WATERMAIN REPLACEMENT $345,520.43
SOUTHSIDE PLUMBING AND HEATING CO SERVICE $3,547.10
SPEE-DEE DELIVERY SERVICE INC SERVICE $20.60
STAN HOUSTON EQUIP CO RENTAL $795.00
STAR LAUNDRY SERVICE $553.36
STEIN SIGN DISPLAY PUBLIC AWARENESS $1,500.00
STILLWELD 360, LLC SERVICE $600.00
STUART C IRBY CO GAS METERS AS PER BID $94,347.69
SUTTON LAWN & SNOW LLC LAWN CARE $3,279.15
TEREX USA, LLC SERVICE – UNIT 28 $1,356.51
TITAN MACHINERY- WTN SERVICE – UNIT 25 $4,421.23
TOSHIBA FINANCIAL SERVICES COPIER LEASE $362.01
TRAV’S OUTFITTER SAFETY CLOTHING $3,849.00
TWOTREES TECHNOLOGIES COMPUTER HARDWARE $16,060.27
US PLASTIC CORP SUPPLIES $467.95
USA BLUEBOOK SUPPLIES $742.70
USA TODAY MEDIA CORP PUBLISHINGS $258.78
VESSCO INC PUMPHEADS – WATER $2,394.07
WATERTOWN BOX CORP SUPPLIES $107.00
WATERTOWN CURRENT LLC PUBLIC AWARENESS $289.58
WATERTOWN DEVELOPMENT COMPANY INDUSTRIAL DEVELOPMENT EXPENSE $8,690.00
WATERTOWN FORD CHRYSLER SERVICE $89.20
WATERTOWN UNITED WAY United Way $217.50
WAYTEK INC SUPPLIES $1,027.30
WESCO DISTRIBUTION INC INSULATING CAPS, SUPPLIES $15,570.50
WINSUPPLY OF WATERTOWN SUPPLIES $188.12
TOTAL $1,818,592.23
Total June 2026 $1,818,592.23, Transfer to City’s General Fund $127,841.00, US Bank Assoc. DW-2, $10,517.71, US Bank Nat’l Assoc. DW-5, $13,650.65. Muni Utilities Electric Water Gas $49,456.39; Missouri River Energy Services Power $1,834,658.37; BP Canada Energy Marketing Natural Gas $53,238.03; Dept. of Revenue Sales/Excise Tax $184,226.15; CPEP #3 Natural Gas $10,927.50, CPEP #4 Natural Gas $14,937.20, CPEP #5 Natural Gas $37,663.37, CPEP #3 Hedge $7,656.00, CPEP #4 Hedge $3,774.00, City Finance Office Garbage/Sewer $918,027.53.
ITEM 8371
Motion by Luken with second by Carter 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 29th, day of June,2026.
ATTEST: ______________________
Lisa Pahl, Board Secretary
Municipal Utilities Board
_____________________________
Dan Brenden, Board President
Municipal Utilities Department
Published once on July 9, 2026, at the total approximate cost of $152.59 and may be viewed free of charge at www.sdpublicnotices.com and www.watertowncurrent.com.