Spearfish City Council Study Session — November 12, 2025

The Spearfish City Council held a study session on Wednesday, November 12, 2025, from 4:15 p.m. to 5:42 p.m. in the Council Chambers at City Hall, 625 5th Street, Spearfish. Mayor Senden presided, with Councilmembers Hafner, Hourigan, Jacobs, Klarenbeek, Myers, and Rath present; no members were absent. Staff included City Administrator Falcon, Finance Officer DeNeui, Public Works Director McMahon, and Assistant Finance Officer Tyler. The session was discussion-oriented, covering the upcoming regular council agenda, the special maintenance fee, the election date for HB 1130, and a possible personnel committee. Public comment opened at 5:32 p.m. Note: the minutes say the meeting was on "Monday, November 12, 2025," but November 12, 2025, was a Wednesday and the transcript references "Wednesday night."

Opening and Agenda Approval

• Councilmember Jacobs moved to amend the agenda to add item 3C, discussion on re-establishing the Personnel Committee; Councilmember Hafner seconded, and the amendment was approved unanimously.
• The amended agenda was then approved unanimously.

Review of November 17, 2025 City Council Agenda

• Staff reviewed the draft agenda for the November 17, 2025 regular council meeting. Public Works noted it would be adding an item.
• The draft consent agenda included meeting minutes, the treasurer's report, a proclamation recognizing the city's 250th anniversary, and a $20,500 transfer from the hospitality tax fund to the general fund for staff time on special events.
• Finance Officer DeNeui reviewed first reading of Ordinance 1410, a budget supplement that would draw about $985,000 from available cash without touching reserves. It included items such as a $200,000 supplement for chip seal and RTU replacements, a $75,000 supplement for Rec Center credit-card fees, $100,000 for a police department frontline vehicle, and multiple fund corrections.
• The draft agenda also included a proposed credit card acceptance policy; a Taco Bell parcel request to vacate right-of-way occupied by its parking lot; the Rainbow Road Box Culvert project award, which received 17 bids with a low bid just under $480,000 versus an engineer's estimate over $1 million; a $421,000 engineering proposal for the airport terminal apron project estimated at about $6 million; a change order of just over $100,000 for East Colorado Boulevard roadway improvements; a final change order for the wastewater treatment plant EQ basin project; and a request to purchase two mid-size SUVs instead of one large SUV at a net $25,000 increase.

Discussion Items

Special Maintenance Fee for 2026 Taxes Payable in 2027

• Finance Officer DeNeui explained the special maintenance fee, also known as the front foot assessment. The current fee is $1 per linear foot with a maximum assessment of 100 feet per parcel, raising about $315,000 annually. The council has already set the 2026 collection at $1.25 per linear foot with a $125 maximum per parcel, expected to raise about $390,000.
• DeNeui presented options for 2027: keep $1.25 with the 100-foot cap, increase the rate, or remove the 100-foot cap. Removing the cap at $1.25 could generate over $550,000; removing it at $1 would generate about $460,000, based on 2021 front-foot data. The funds are restricted by law to street care and maintenance.
• Council members discussed public education and a possible press release, noting the fee does not cover actual street maintenance costs. One council member favored keeping the 100-foot cap for consistency, while another argued larger commercial properties with big parking lots should pay more. Staff was directed to prepare public information and bring the topic back for further discussion.

Election Date for Implementation of HB 1130

• DeNeui led discussion on whether to hold city elections in June or November under HB 1130 from the 2025 South Dakota legislative session. June would combine with school district and county primary elections; November would combine with state and national elections.
• Lawrence County entities other than the city had indicated they were looking at June, and the school district business manager was also recommending June. Council consensus was to move toward a June election despite the burden on finance staff. Staff will prepare an ordinance change and resolutions to extend terms expiring in May 2027 to June.

Personnel Committee

• Councilmember Jacobs proposed reinstating a personnel committee that would include some staff and council members for hiring director-level positions. Councilmember Hafner expanded the idea to include a venue for employees to voice grievances and provide checks and balances on administration.
• Discussion noted the prior committee did not produce formal minutes, and staff had not yet found when it was discontinued. Council consensus was to continue developing the framework, place the item on the November 17, 2025 regular meeting agenda, and begin organizing the work through an email by the end of the week.

Public Comments & Testimony

• Joe Jorgensen commented on the Special Maintenance Fee, recalling that special assessments were originally used when the city paved gravel streets and that he had been told he would not be assessed again after paying for Third Street. He also asked how frontage is calculated for Walmart, noting its only frontage appears to be the two access streets.

Departmental Discussion

• Councilmember Rath noted there are no school zone signs around Mountain View Elementary. Public Works Director McMahon responded that staff have been talking with the school about school zone signs and recommended a discussion with Police Chief Smith.
• Rath also questioned the business sign ordinance, specifically whether window signs require a permit. McMahon said the question would need to go to planning.
• Councilmember Myers asked for an update on the bucket truck purchase. McMahon said the purchased truck had a recall and repairs were being completed before delivery; the city is using a loaner truck from the company in the meantime.
• Myers also asked about engineering standards and specifications. Mayor Senden responded that the updates are out for public comment, staff are still working on construction specifications, and the changes will lead to many ordinance revisions before adoption.
• Councilmember Klarenbeek asked City Administrator Falcon to be more aggressive in covering graffiti, particularly under the Jackson Street bridge. Falcon said he would visit with law enforcement and parks.

Key Outcomes

• The amended study session agenda was approved unanimously.
• Consensus was reached to move city elections to June pursuant to HB 1130; staff will prepare the ordinance change and term-extension resolutions.
• The personnel committee question will be added to the November 17, 2025 regular council agenda for discussion, with initial organizational work to begin by email by the end of the week.
• Staff will prepare public information on the special maintenance fee and bring the topic back to a future study session.
• No formal ordinances or resolutions were adopted during the study session. The meeting adjourned at 5:42 p.m. following a motion by Councilmember Myers and a second by Councilmember Jacobs.