MINUTES OF MUNICIPAL UTILITIES BOARD MEETING – Monday, March 30, 2026

MINUTES OF MUNICIPAL UTILITIES BOARD MEETING
Monday, March 30, 2026

The Municipal Utilities Board convened in regular session at the Watertown
Municipal Utilities Board Room 901 Fourth Avenue SW Watertown SD on Monday,
March 30, 2026, at 12:00 p.m. with President Dan Brenden presiding.
Board members present: Dan Brenden, Rich Thomas, Charlie Larkin, Chris
Carter, and Mike Luken (Via Teams). Board Liaison, member of City Council,
Kyle Peters was absent. Staff members present: Steve Lehner, Adam Karst,
Bert Magstadt, Wayne Lovelis, Brian Benson, Aaron Erickson, Mark Meier,
Rod Sutton, Dan LeVasseur, Zeke Hilmoe, Cheryl Mack, Gina Brown, Lisa Pahl
and Attorney Vince Foley. Guests: Alan Stager City Manager, Kelli Fritz,
PIO for the City of Watertown, Mayor Reid Holien, and Media: Roger
Whittle, Watertown Current.
ITEM 8325
Motion by Carter with second by Thomas to approve the agenda.
ITEM 8326
Motion by Thomas with second by Carter to approve minutes of Regular Board
Meeting on February 27, 2026. Motion carried.
ITEM 8327
Public Comment – None
ITEM 8328
Motion by Carter with second by Larken to approve General Policies 3.2 by
adding The Watertown Current as a designated official newspaper for
publication, 4.4 accepting commercial and industrial letters of reference
in lieu of deposits, and a small verbiage change to 4.8. Motion carried.
Motion by Thomas with second by Carter to keep Schedule of Fees 16.1
Delinquent Service Fee at $40. This motion was put to a roll-call vote
Brenden, Thomas, Carter, and Luken, Aye, and Larkin Nay. Motion carried by
roll call vote of 4-1.
Motion by Thomas with second by Carter to approve the schedule of fee
changes to residential non-heating and heating deposits, disconnect and
reconnect charges, water tapping fees, fire protection charges and fees
for gas fuel runs. Motion carried.
Motion by Thomas with second by Carter to accept Employee Manual changes
to 106 Employment of Relatives (Nepotism), 503 by adding Vaping to
Worksite smoking policy, 512 adding Bring Your Own Device Policy for
Outlook and Microsoft Authenticator and changes to 114 Residency
Requirements changing requirements from a 10 mile radius to a 30 minute
response time to the Watertown Municipal Utilities. Motion carried.
Motion by Thomas with second by Carter to approve changes to the Water
Policy by adding 14.5 verbiage saying developer is responsible for
purchasing hydrants for private streets that meet department
specifications and by adding 14.14 requiring an Engineer’s Opinion of
Probable Cost. Motion carried.
ITEM 8329
This being the time and place set for consideration of bids, the following
were presented. Bids for Sodium Hypochlorite and Quick Lime Chips. These
bids were opened Thursday, March 26, 2026, at 1:30 PM by the Watertown
Municipal Utilities Staff as authorized by the Board.
Sodium Hypochlorite: Two bids were received and upon review and
recommendation by Magstadt, motion by Larkin with second by Carter to award
bid to low valid bidder, Aqua-Pure Inc., Sioux Falls, SD for a total of $3.97
for summer months and $4.42 for winter months. Motion carried.
Quick Lime Chips: Three bids were received and upon review and recommendation
by Magstadt, motion by Larkin with second by Thomas to award bid to low valid
bidder, Pete Lien, Rapid City, SD in the amount of $294.59 per ton. The other
two bids did not meet specs. Motion carried.
ITEM 8330
Motion by Carter with second by Larkin to move item number 7 Authorize
Board President to sign Termination and Settlement Agreement with
Northwestern Energy Public Service Corporation to Executive Session.
Motion carried.
ITEM 8331
Motion by Larkin with second by Thomas to authorize the Board President to
sign Resolution #8330. Motion carried unanimously upon roll call vote.
RESOLUTION OF THE CITY OF WATERTOWN, SOUTH DAKOTA MUNICIPAL UTILITIES BOARD
TO APPROVE THE USE OF EXCESS WATER SYSTEM SURCHARGE FUNDS TO PAY CERTAIN
EXPENSES OF OPERATING AND MAINTAINING IMPROVEMENTS PREVIOUSLY FINANCED
THROUGH THE ISSUANCE OF A BOND SECURED BY THE SURCHARGE
WHEREAS, in 2008 the City of Watertown Municipal Utilities Board (the
“Utilities Board”) undertook a project to make substantial improvements to
the City’s drinking water system; and
WHEREAS, in contemplation of financing such improvements, on April 28,
2008, the Utilities Board adopted Resolution No. 5632 (the “Surcharge
Resolution”) to approve an amendment to the rate schedule applicable to users
of the City’s drinking water system, including the adoption of a surcharge
pursuant to SDCL 9-40-15 (the “Act”) to be pledged as security for and to be
used as the source of repayment for such financing; and
WHEREAS, in order to pay for a portion of the cost of the improvements
to the drinking water system and associated costs, including engineering
costs, legal and financing costs, and other related costs, the City on
October 31, 2008 issued its Water System Revenue Bond in the principal amount
of $23,760,000 (the “Bond”) to the South Dakota Conservancy District and in
connection with the issuance of the Bond, the City entered into a Loan
Agreement dated October 31, 2008 (the “Loan Agreement”) with the South Dakota
Conservancy District; and
WHEREAS, the surcharge has generated and continues to generate funds in
excess of the amounts necessary to pay principal and interest on the Bond,
and as a result, after paying principal and interest on the Bond, as of
December 31,2025 the balance remaining in the surcharge fund was
$2,499,059.32 (the “Excess Surcharge Funds”); and
WHEREAS, as required by the Loan Agreement, the surcharge rate currently
in effect is reasonably expected to generate during each calendar year not
less than 115% of the principal and interest due on the Bond during such
year; and
WHEREAS, it has been proposed that some of the Excess Surcharge Funds
be used to pay a portion of the expenses of operating and maintaining the
improvements financed with the proceeds of the Bond; and
WHEREAS, the Surcharge Resolution contemplates the use of Excess
Surcharge Funds for other purposes as permitted under the Act, and the Act
permits the surcharge to be used for the services of the facilities financed
with the proceeds of the Bond; and
WHEREAS, the Utilities Board has been advised by the City’s bond counsel
that the Loan Agreement does not prohibit the use of surcharge revenues to
pay expenses of operating and maintaining the improvements financed with the
proceeds of the Bond if adequate provision has been made for the timely
payment of principal and interest on the Bond and the City has otherwise
complied with the terms of the Loan Agreement; and
WHEREAS, the Utilities Board has determined that it is in the best
interests of the City and the users of the City’s drinking water system to
use a portion of the Excess Surcharge Funds for the payment of a portion of
the expenses of operating and maintaining the improvements financed with the
proceeds of the Bond; and
WHEREAS, during calendar year 2025, surcharge collections, or
Borrower’s Project Income, totaled $2,418,781.44 and Borrower’s Total Debt
Service on project totaled $951,608.75 with the difference being
$1,467,172.69.
NOW, THEREFORE, BE IT RESOLVED by the City of Watertown Municipal
Utilities Board, as follows:
1. The General Manager of Watertown Municipal Utilities is authorized
and directed to transfer the sum of $1,467,172.69 from the DWSRF Loan #1
Surcharge Fund to the DWSRF Loan #1 O&M Fund and to use such funds to pay a
portion of the expense to be incurred during each calendar year for operating
and maintaining the improvements financed with the proceeds of the Bond.
2. In preparation of the Annual Certification of Compliance with Rate
Covenant, the Excess Surcharge Funds transferred in 1. above will not be
subtracted from or added to Borrower’s Project Income for any calendar year.
Dated at Watertown, South Dakota, this 30th day of March 2026
ITEM 8332
Motion by Thomas with second by Carter to declare as surplus a) Asset
#1269 2018 Ringomatic 550 Vac Machine b) Asset #1157 2015 Ford F250 Super
Cab 4 x 4 ¾ ton pickup. Motion carried.
ITEM 8333
Open: Lehner presented two bill stuffers to the Board, a) Living Safely
with Natural Gas b) WMU online setup. Luken and Larkin both gave an update
on the APPA Legislative Rally they attended in February. They got to meet
with the state aides. Some talking points were Municipal Tax Issues,
Federal Programs, FEMA Reform and talk on Nuclear Energy.
ITEM 8334
Old Business: After review of last month’s request of time of sample
mailings there was a motion by Carter with second by Thomas to approve the
8 ½” x 14” with color Bid proposal from InfoSend, Inc., Downers Grove, IL
for $368,928.00 that was tabled from last month board meeting. Motion
carried with Mike Luken abstaining.
Lehner reminded the Board of the MRES Annual Meeting in Sioux Falls, SD,
May 6-7.
ITEM 8335
Magstadt presented the Report on Operations and Projects. Electric,
Projects Completed this Month: Had 5 outages for March for a total of 8
unscheduled power outages in 2026. Gas Department, Projects Completed this
Month: Removed the valves and reliefs/stacks from the propane tanks.
Water Department, Projects Completed this Month: 3 water main breaks for a
total of 7 for the season, Projects Starting next Month: Cast Iron Main
project starts April 1st. Engineering Tech, Projects in Progress: Milsoft
Electric Program & Training.
ITEM 8336
Karst presented the report on Administration and Financial Statements,
Purchasing, Accounting and Facilities, Projects in Progress: 2025
Financial Statement Audit is currently in progress. Upcoming Projects:
Purple Wave surplus auction. Customer Service, Projects Completed this
Month: Completed catch-up work and training during the conversion window,
completed interviews with the newspaper Current and radio interviews with
KXLG and KWAT, Projects in Progress: Review/approve reports and dollar
amounts with Matthew at Tyer. Upcoming Projects: Process/print/mail April
bills, Target Customer receipt: April 15th or earlier. 15,745 Payments
collected for a total of $7,095,027 and 57,947 services billed for a total
of $6,659,433. Human Resources/Risk Management: Rehire of Monty Waite-PT
meter reading and maintenance, new hire Scott Leitheiser PT meter reading
and maintenance, Customer Service Summer Intern -5 applicants interviewed
with an offer made and accepted, Safety: Coordinated meeting with the SDML
Workers’ Compensation fund and City staff to review safety practices,
claims history, and improvement opportunities. Information Systems,
working with Tyler Technologies on new utility billing package. 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 $362,297 below budget for
the two months ending February 28, 2026. Total Capital Additions are $180,493
under budget for the two months month ending February 28,2026.
ITEM 8337
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 March 2026
Plus ACH Payroll Payments $704,721.97. Change: L. Redlin $41.70/hr.
effective 3/01/2026, T. Pahl $51.49/hr. effective 3/19/2026. Rehire: M.
Waite $24.25/hr. effective 3/18/2026.

Name Payable Description, Payment, Amount
APRIL 1, 2026
ABC EMBROIDERY SERVICE $14.40
ACTIVE HEATING INC SERVICE – WTP BOILERS $4,830.37
ADVANCE PRODUCTS & SYSTEMS, LLC SUPPLIES $2,185.34
ADVANCED ENGINEER. AND ENVIRONMENTAL SERVICES, LLC UNIDIRECTIONAL FLUSHING PROGRAM $17,286.25
AFLAC ACCIDENT $1,900.92
AMARIL UNIFORM COMPANY SAFETY CLOTHING $229.80
A-OX WELDING SUPPLY INC SUPPLIES $941.44
APPLICANT PRO SERVICE $236.00
AUTO VALUE WATERTOWN SUPPLIES $20.80
AUTOMATIC BUILDING CONTROLS SERVICE $300.00
BORDER STATES ELECTRIC SUPPLY 8″ GAS VALVES $18,211.15
BORNS GROUP POSTAGE & MAILING $14,910.54
BRISTOL, INC. SERVICE $432.00
BUTLER MACHINERY CO RENTAL $5,870.81
CHASE CARDMEMBER SERVICE CREDIT CARD $9,533.43
CODINGTON-CLARK ELECTRIC COOPERATIVE INC WELLFIELD ELECTRIC SERVICE $6,427.96
COLOURS, INC. SUPPLIES $67.66
COMMERCIAL CLEANING SERVICES INC. JANITORIAL SERVICE $3,975.00
CORE & MAIN LP HYD EXT KIT, SUPPLIES $5,386.37
CREDIT COLLECTIONS BUREAU COLLECTIONS $128.32
DAKOTA BODIES LLC SUPPLIES $345.00
DAKOTA DATA SHRED SHREDDING SERVICE $113.33
DATA CENTER WAREHOUSE LLC TABLETS $3,637.25
DELTA DENTAL OF SD DENTAL INSURANCE $1,568.80
DEPARTMENT OF HEALTH WATER SAMPLES $624.00
DGR ENGINEERING 115 KV TRANSMISSION LINE REBUILD $18,460.00
DIESEL MACHINERY INC TRAILER MOUNTED AIR COMP. PER SOURCEWELL $48,966.00
DITCH WITCH OF SOUTH DAKOTA, INC SUPPLIES $132.11
DSG DAKOTA SUPPLY GROUP VT PACKS FOR 3PHASE APPLICATIONS $5,609.25
DTN, LLC SUBSCRIPTION $584.61
EAST RIVER ELEC POWER COOP SERVICE $250.00
EQUITABLE VISION INSURANCE $207.26
ERICKSON, AARON REIMBURSEMENT EXPENSE $46.00
ETHANOL PRODUCTS LLC BULK CO2 $771.06
FASTENAL COMPANY SUPPLIES $1,156.47
FEDERAL EXPRESS CORP SERVICE $10.78
FOLEY AND FOLEY LAW OFFICE, PC FEBRUARY LEGAL SERVICES $2,665.00
FRANZ REPROGRAPHICS, INC. SUPPLIES $819.59
G & R CONTROLS INC. DESIGO VERSION UPGRADE $6,069.05
GRAINGER SUPPLIES $890.76
HAWKINS, INC. AZONE 15, HYDROFLUOSILICIC ACID $8,677.43
HILMOE, ZEKE REIMBURSEMENT EXPENSE $77.18
IBEW LOCAL 426 UNION DUES $4,888.00
J H LARSON COMPANY SUPPLIES $134.38
JURGENS PRINTING INC SUPPLIES $1,376.00
KLJ SOLUTIONS HOLDING CO. SERVICE $1,966.22
LANO EQUIPMENT INC. BANDIT 15XP WOODCHIPPER PER SOURCEWELL $85,360.00
LEHNER, STEVE REIMBURSEMENT EXPENSE $368.65
LUKEN, MIKE REIMBURSEMENT EXPENSE $1,711.49
MACK, CHERYL REIMBURSEMENT EXPENSE $119.20
MACKSTEEL WAREHOUSE INC SUPPLIES $2,873.93
MAC’S HARDWARE SUPPLIES $334.87
MADISON NATIONAL LIFE INSURANCE CO. INC. LIFE INSURANCE – STAFF $52.00
MAGSTADT, BERT REIMBURSEMENT EXPENSE $982.67
MATHESON TRI-GAS INC SUPPLIES $182.72
MCKEEVER INC SUPPLIES $561.00
MENARDS INC SUPPLIES $2,033.07
MESA PRODUCTS INC SUPPLIES$389.72
MET LIFE LIFE INSURANCE $1,435.79
MIDCONTINENT COMMUNICATIONS INTERNET, CABLE & PHONE $1,901.17
MIDWEST UNDERGROUND SUPPLY, LLC RINGOMATIC JET VAC 550 $84,400.00
MILBANK WINWATER WORKS SUPPLIES $632.47
MILLERBERND MFG CO LIGHT POLES $11,259.00
MINNESOTA MUNICIPAL UTILITIES ASSN TRAINING EXPENSE $2,055.00
MUELLER CO  1″ NON-INSULATED METER VALVES – GAS $6,066.18
MUNICIPAL UTILITIES – PC REPLENISH PETTY CASH $402.49
MUNICIPAL UTILITIES-NSF CHECK ACCO REIMBURSE NSF FUND $2,533.53
MUNICIPAL UTILITIES-REFUND ACCT REFUNDS OF CREDITS ON ACCOUNTS $4,879.62
NAPA CENTRAL SUPPLIES $1,228.84
NORTHWEST PIPE FITTINGS INC SUPPLIES $1,802.52
NOVASPECT, INC. 2″ FLANGED REGULATORS $5,120.77
OFFICE OF ENERGY ASSISTANCE REFUND OF CREDIT ON ACCOUNT
$377.88
OFFICE PEEPS SUPPLIES $506.27
P4 MANUFACTURING SERVICE $985.00
PAHL, TIMOTHY A REIMBURSEMENT EXPENSE $290.00
PAYMENTUS GROUP INC. SERVICE $39.80
PETE LIEN & SONS BULK LIME $33,708.58
PIPELINE ASSN FOR PUBLIC AWARENESS ANNUAL DUES $725.00
POMP’S TIRE SERVICE, INC. SERVICE $152.10
PRINT ‘EM NOW INC SUPPLIES $60.00
PYE-BARKER FIRE & SAFETY LLC SERVICE $1,045.00
RELIABANK DAKOTA FLEX DC $7,381.53
RON’S SAW SALES SUPPLIES $271.43
RUNNING’S SUPPLY INC SUPPLIES $576.67
SCHAEFFER MFG CO SUPPLIES $1,539.45
SCHWEITZER ENGINEERING LABORATORIES, INC. SUPPLIES $225.66
SD ONE CALL LOCATES $37.80
SD RETIREMENT SYSTEM 2025 ADDITIONAL CONTRIBUTIONS $4,485.75
SECOND STREET STATION CALL BEFORE YOU DIG BANQUET $1,599.79
SIOUX VALLEY CO-OP FUEL, SUPPLIES $4,320.63
STAN HOUSTON EQUIP CO RENTAL $497.47
STAR LAUNDRY SERVICE $575.68
STUART C IRBY CO SUPPLIES $2,939.00
TITAN MACHINERY-SF SERVICE UNIT 301 $1,902.88
TOSHIBA FINANCIAL SERVICES COPIER LEASE $473.68
TRAV’S OUTFITTER SAFETY CLOTHING $1,384.50
TWO WAY SOLUTIONS, INC. SUPPLIES $245.94
TWOTREES TECHNOLOGIES SOFTWARE MAINTENANCE $1,218.75
TYLER TECHNOLOGIES BILLING SOFTWARE $6,595.00
USA BLUEBOOK SUPPLIES $673.26
USA TODAY MEDIA CORP PUBLISHINGS $257.88
UTILITY SERVICE CO., INC WATER TOWER MAINTENANCE $250,353.15
VAN DIEST SUPPLY COMPANY HERBICIDE $7,592.00
WATER RIGHTS PROGRAM PERMITS $285.00
WATERTOWN CURRENT LLC PUBLISHINGS $168.22
WATERTOWN DEVELOPMENT COMPANY2026 GROW WATERTOWN $60,000.00
WATERTOWN DEVELOPMENT COMPANY INDUSTRIAL DEVELOPMENT $8,690.00
WATERTOWN UNITED WAY UNITED WAY $217.50
WAYTEK INC SUPPLIES $64.54
WELD-IT-ALL SERVICE $852.72
WESCO DISTRIBUTION INC WIRE AS PER BID $142,808.40
TOTAL $967,744.70

Total March 2026 $967,744.70; US Bank Nat’l Assoc. $1,526,487.50, US Bank
$10,517.71, US Bank Nat’l Assoc. $13,650.65, Transfer to City’s General Fund
$127,841.00, Muni Utilities Electric Water Gas $51,410.59; Missouri River
Energy Services Power $2,187,743.75; BP Canada Energy Marketing Natural Gas
$332,839.18; Dept. of Revenue Sales/Excise Tax $281,330.88; CPEP #3 Natural
Gas $420,386.40, CPEP #4 Natural Gas $218,056.86, CPEP #5 Natural Gas
$983,232.25, CPEP #3 Hedge $64,537.26, CPEP #4 Hedge $12,967.52, City Finance
Office Garbage/Sewer $921,928.95.

ITEM 8338
The Board set date of Wednesday, May 27, 2026, at noon for May Board
Meeting.
Pursuant to SDCL 1-25-2 (3) Larkin moved with second by Carter to move to
Executive Session. Action is expected when coming out of Executive
Session. Motion carried.
Board President Brenden declared Executive Session done and they
reconvened to regular session.
Motion by Carter with second by Larkin to set the wheeling fee in Exhibit
G of the Termination and Settlement Agreement with Northwestern Energy
Public Service Corporation at 0.0063 per kwh effective April 16, 2026.
Motion carried.
Motion by Larkin with second by Thomas 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 30th, day of March,2026.
ATTEST:
Lisa Pahl
Board Secretary, Municipal Utilities Board
Dan Brenden
Board President, Municipal Utilities Department

Published once on April 9, 2026, at the total approximate cost of $189.80 and can be viewed free of charge at www.sdpublicnotices.com and www.watertowncurrent.com.