Spearfish City Council Regular Session - January 5, 2026

The Spearfish City Council convened at 5:30 PM on January 5, 2026, for a regular session. The meeting was dominated by extensive public comment regarding city transparency, the job performance and background of City Administrator Bobby Falcon, and a call for the council to take a more active role. The Finance Officer presented a revised 2025 Budget outlook showing a significantly reduced cash deficit. The council took action on several items, including denying a contingency fund transfer, dissolving Tax Increment District (TIF) Number Four, and tabling an airport water main design contract. A significant governance discussion arose when Council President Jacobs declared City Administrator Falcon unfit for duty and requested a legal opinion on the council's authority to terminate him.

Public Comments & Testimony

• A large public comment period focused on city transparency, communication, and the position of City Administrator Bobby Falcon. Ten citizens spoke.
• Doug Markworth strongly criticized the council for lacking open dialogue with the public, and questioned the process and justification for a recent raise given to City Administrator Falcon.
• Toby Bordewyk disagreed with personal attacks made against Falcon on social media and urged the council to base any decisions on merit and job performance.
• Alesha Limbo expressed frustration over a significant disconnect between the city and its residents, stating Falcon is not involved in the community. She thanked the council for speaking up.
• Stan Triplett questioned why the city's job application only asks about arrests in the last seven years.
• Dennis Wilson urged the mayor to listen to the council and the public.
• Councilmember Larry Klarenbeek (speaking during this portion) apologized for the disconnect, offered solutions such as expanding public comment time, and called for better follow-up on citizen concerns.
• Dorcie Dardis and Calvin Dardis advocated for opening closed executive sessions to the public and increased transparency.
• Dan Hods defended the staff and council, expressing trust in their integrity to manage personnel matters like the city administrator's raise.
• Pam Mattson encouraged the council to lead by self-advocating and to address issues like snow plow damage to street lines proactively.
• Joe Jorgensen recalled allowing open dialogue during his time as mayor in the 1980s.

City Administrator Background Investigation

• In response to recent social media attacks and an anonymous email, City Administrator Bobby Falcon, Mayor Senden, and City Attorney David Knox presented findings from an investigation into Falcon's background.
• Falcon stated that while he had a conviction from 1995, he received a full pardon with removal of guilt from Governor Doug Burgum in 2022, and his court records were sealed.
• City Attorney David Knox reported that his investigation found Falcon did not lie on his application (which asked about convictions in the last seven years) or in his interviews. Knox recommended that Falcon was not disqualified for the position.

Presentation & Discussion Items

• 2025 Budget Presentation: Finance Officer Michelle DeNeui presented a revised 2025 budget outlook. The original budget projected an $8.26 million use of cash balance but improved projections show a significantly lower cash deficit of $608,244. A current projection shows a positive cash balance, mostly attributed to the sewer fund. The city uses cash rather than debt for capital projects.
• Mayor and Council Discussion on City Administrator: Council President Pam Jacobs stated that she believes City Administrator Falcon is no longer fit to fulfill his duties and requested the city attorney seek an opinion from the state attorney general on the council's authority to terminate Falcon. Councilmembers Hafner, Rath, Klarenbeek, and Myers supported Jacobs’ request. Mayor Senden stated he has received favorable reports from staff on Falcon's performance and is surprised by the council's conclusion.
• Airport Water Main Project: Discussion ensued on authorizing Mead & Hunt to proceed with design. Councilmembers had concerns about the need for an 8-inch line, fire suppression at the airport, why an outside firm was needed, and the total project cost. The item was tabled.
• Other Departmental Updates: Public Works Director McMahon provided an update on the Main Street chip seal project (pending spring repairs). Assistant Planning Director Ecker updated the council on the Safety Action Plan. Parks and Rec Director Ehnes will send the snow removal plan to council via email. City Attorney Knox noted the city closed on the sale of Lot 5 of the old Sawmill property to Jayhawk Holdings for approximately $438,000 for the future Camp Canine business.

Key Outcomes

• Denied: The council voted 5-1 to deny a $79,246 transfer from the contingency fund to cover wage overages in the City Administration and Planning & Zoning departments. Councilmember Hourigan was the dissenting vote.
• Approved:
  • Proclamation designating March 15, 2026, as "Scooby Day" in Spearfish.
  • Consent Agenda (Meeting minutes, library volunteers, and an informational wage list).
  • First reading of Ordinance 1414 (amending hiring/promotion policies).
  • Special event malt beverage license for the "Tunes for Tails" Benefit Concert.
  • Special on-sale liquor license for the "Chinook Fest Bonfire".
  • Restaurant retail (on-sale) liquor license for Antunez at 117 E. Illinois Street.
  • Resolution 2026-01 dissolving Tax Increment District Number Four (Creekside Development).
  • First Amendment to the Land Use Agreement with Black Hills Bike Share.
  • Variance and preliminary plat for the Soncy Subdivision.
  • Second reading of Ordinance 1412 (zoning certain property as R-3).
  • Final plat for Lot H Revised in the ETJ area.
  • Resolution 2026-02 approving the incorporation of the Caballo Road District.
  • Assumption of Ground Leases for hangars at 508 and 420 Aviation Place.
  • Bill list and December 2025 Salary and Fee report.
• Tabled: Authorization for Mead & Hunt to design the airport water main project was tabled to a future regular council session pending further information.
• Requested: Council requested a legal opinion from the State Attorney General regarding the council's authority to terminate the City Administrator.