Spearfish City Council Regular Session

The Spearfish City Council met on November 17, 2025, at 5:30 PM. The meeting featured extensive public comment regarding the city administrator's salary, alongside action on budget supplements, public works contracts, and a discussion on re-establishing a personnel committee.

Consent Calendar

• Approved minutes from the October 29 study session and November 3 regular session.
• Approved the Treasurer's Report for October.
• Approved event sponsorships recommended by the Visit Spearfish board, including $1,500 for the Camaro Rally and $1,000 for Chinook Days.

Public Comments & Testimony

• Greg Moselle (resident) expressed strong opposition to the recent pay raise for City Administrator Bobby Falcon, stating his salary now exceeds $200,000. He compared this unfavorably to the median Spearfish income ($59,000) and the salaries of state and federal officials, questioning the process and the use of an outside consulting firm from Georgia.
• Doug Markworth (resident) directly urged the council to rescind the pay raise and benefit package, citing the council's authority for reconsideration of a previous action. He emphasized the council represents the citizens, not the mayor or city administrator.
• Dennis Wilson (resident) stated his research found the administrator's salary to be over double the highest-paid city manager in South Dakota ($94,000 in Pierre) and in the 90th percentile nationally, questioning the mayor's leadership on the issue.
• Note: The Mayor stated he would follow up on perceived inaccuracies in the comments but did not address them during the meeting.

Discussion Items

• America's 250th Proclamation: Mayor Senden proclaimed Spearfish an official America's 250th South Dakota Community to commemorate the 250th anniversary of the signing of the Declaration of Independence. A volunteer committee is being formed.
• Budget Supplement (Ordinance 1410): Finance Officer DeNeui presented the first reading of a $2,153,480 budget supplement covering various departmental needs including IT upgrades, fire training tower, chip seal costs, RTU replacements at the rec center, and TIF 8 engineering costs. The funding mostly comes from available fund balances.
• Credit Card Acceptancy Policy: A new policy was approved establishing a $5 minimum for credit card transactions and implementing a fee on online building permit and license payments to offset processing costs.
• Public Works Contracts:
  • Awarded the Rainbow Road Box Culvert project to North Star Construction Inc. for $479,324.32, significantly below the $1 million budget.
  • Approved a $421,475 engineering design contract with Mead & Hunt for expanding the Airport Terminal Apron.
  • Approved several change orders, including a $100,781.17 net increase for the Colorado Boulevard project for groundwater mitigation and sidewalk additions.
• Vehicle Purchase Discussion: An initial proposal to purchase two mid-size SUVs was modified. Councilmember Jacobs successfully moved to purchase a single large or mid-size SUV at the budgeted amount of $65,000, foregoing the second vehicle. The remaining 2026 vehicle and equipment purchases totaling $558,100 were approved.
• Personnel Committee:
  • Council discussions centered on re-establishing a personnel committee, which was eliminated in 2020.
  • Councilmember Hourigan advocated for its formation to improve information flow and transparency on staff-related issues.
  • The council directed City Attorney Knox, Jody Mathis (HR), and City Administrator Falcon to develop a framework and guidance for the council's consideration.
• Departmental Updates:
  • Public Works Director McMahon reported that a week of power outages tested city infrastructure, revealing issues with traffic signal backups that are being addressed.
  • City Attorney Knox updated the council on the snow removal committee, which has held two meetings and plans a public forum before bringing recommendations to the council.

Key Outcomes

• Approved the Consent Agenda and $1,411,348.89 bill list.
• Approved a special exception for infrastructure delays in the Sawmill TIF District.
• Advanced the 2025 budget supplement (first reading of Ordinance 1410).
• Approved the Credit Card Acceptancy Policy.
• Awarded multiple public works bids and change orders.
• Directed staff to create a framework for a personnel committee.
• Entered executive session at 6:42 PM to consult with legal counsel regarding litigation and contractual matters. The regular session was adjourned at 7:41 PM.