Spearfish City Council Regular Session – May 18, 2026

The Spearfish City Council met at 5:30 p.m. on Monday, May 18, 2026, in the City Council Chambers at 625 5th Street. The meeting included a fire chaplain’s invocation, pledges, approval of four proclamations, a consent calendar, a public hearing on a minor plat, and a series of finance, fire, human resources, police, and public works actions. The council voted to approve a development agreement for Peaceful Pines at Elkhorn Ridge (5‑1), approved a fixed weekly compensation of $1,500 for Mayor Senden for his additional duties as interim city administrator (4‑2), authorized a new fire department administrative coordinator position, endorsed a resolution supporting reclassification of 911 communications officers to Class B retirement, and advanced several infrastructure projects and grant applications. The meeting adjourned at 7:19 p.m.

Consent Calendar

• Approved the minutes of the April 29, 2026, city council study session and the May 4, 2026, regular session.
• Added Nellie Mitchell to the Recreation Center 2026 volunteer list.
• Ratified the Development Agreement for the final phase of the Top Shelf development.
• Approved the Treasurer’s Report dated April 30, 2026 (the minutes incorrectly reference April 30, 2025, but the agenda states 2026).
• Approved the dedication of public infrastructure, right‑of‑way, and easements for Countryside Subdivision Phase G‑3, The Homestead.
• Added Dwight Gingerich to the 2026 public works volunteer list.

Public Comments & Testimony

• John Dale (239 West Jackson) spoke about health concerns related to electromagnetic fields (EMF) from technology. He expressed frustration with the lack of action and warned of potential future negligence prosecutions. He stated he is not attacking council or staff but wants the system “tuned for safety.”
• William Shaw Waggoner (Rapid City, self‑identified as a South Dakota constitutionalist advocate) read a formal demand letter regarding data centers. He argued that domestic and agricultural water use (SDCL 46‑1‑5) must take priority over industrial appropriations, demanded disclosure of chemical blowdown discharge, grid impact studies, and noise assessments, and stated that failure to provide records within 10 business days would be considered a willful violation of sunshine laws. He also cited potential federal criminal liability under 18 U.S.C. § 241 and 242.
• Gary Smith (Pearson Drive) expressed full support for compensating Mayor Senden $1,500 per week for his additional duties as interim city administrator, but argued that the amount is insufficient given the advertised city administrator salary range of $174,000–$265,000, which he contended is far above the Midwest average of $108,000–$115,000 based on surveys. He urged the council to reconsider the advertised salary range.
• Jeremy Smith (287 Evans Lane) raised questions about the Peaceful Pines development agreement (10A). He asked whether the required park space (for 60 lots plus a 98‑unit apartment) met the parks master plan guidelines, questioned a cost‑share for extending the rec path that was also part of TIF 10, and suggested that the city should table the agreement until the new design standards are finalized.

Discussion Items

• Community Development 10A – Peaceful Pines at Elkhorn Ridge Development Agreement: Community Development Director Wysocki presented the agreement. The project will include a 28‑acre build‑out near exit 17, with utilities, roads, stormwater, open space, and a rec path connection. The developer agreed to install an 8‑foot sidewalk; the city proposed a cost‑share of $58,000 to bring it to the standard 10‑foot rec path width, payable in the 2027 budget. The developer also received earlier approval to begin vertical construction before completing all infrastructure, secured by a 120% bond. Regarding park space, approximately 2 acres will remain under a public access easement but will not be dedicated to the city because it does not meet size and amenity standards. The council approved the agreement 5‑1, with Councilmember Hafner voting nay.
• Community Development 10B – Minor Plat and Variance at 3075 Burno Gulch Road: The public hearing was opened at 6:09 p.m. and closed with no public comments. The plat subdivides 92 acres into 3 lots in the ETJ area. A variance allows one lot to be accessed via a private easement rather than dedicated road frontage. Conditions include a revised fire mitigation plan and a road maintenance agreement. The planning commission had recommended approval 4‑1. The council approved the plat and variance unanimously.
• Finance 11A – Ordinance 1418 (Second Reading): This ordinance supplements the 2026 appropriations with $1,605,657 across the General Fund, Highway/Bridge Fund, Water Fund, and Hydro Fund for previously approved items. No changes since the first reading. Approved unanimously on roll call.
• Finance 11B – Special Event Malt Beverage License: Approved an application from Jason Kingsbury, dba Cohort Craft Brewery, for a license to serve at the Leading Ladies Marathon on August 23, 2026, from 7:15 a.m. to 2:00 p.m. at Spearfish City Park. Unanimous.
• Finance 11C – PILT Transfer for 2026: Transfers $207,378 into the General Fund from enterprise funds (Water $67,648, Hydro $14,091, Sewer $38,402, WWTP $59,325, Airport $14,218, Parking $86, Solid Waste $8,882, Campground $4,726). Unanimous.
• Finance 11D – Other Transfers for 2026: Approved eight budgeted transfers totaling $2,735,055, including: $473,240 from General Fund to E‑911; $973,000 to Airport Fund; $655,600 to Second Penny Sales Tax Fund for bond payment; $200,000 to Fire Capital Fund; $25,000 to Historic Preservation; $212,100 from Hospitality Tax to Workforce Housing Fund; $21,115 from Hospitality Tax to General Fund; and $200,000 from Water Fund to Airport Fund for the Airport Waterline Project. Unanimous.
• Fire 12A – Administrative Coordinator Position: Fire Chief Deaver requested authorization to fund a new Administrative Coordinator (Grade 14) for the fire department, noting a 30% increase in call volume over the prior year. The finance officer explained that the position’s salary would be split 50% from the General Fund and 50% from the Wildland Fire Fund, which accumulates profit from state‑deployment reimbursements (plus a 5% administrative fee). The cost for the remainder of 2026 is estimated at ~$50,000 (salary plus a new computer), and $101,000 for a full year in 2027. Police Chief Smith provided a brief update, noting that three previously approved police officer positions are unlikely to be fully filled until August, saving an estimated $206,000 in 2026, which could offset the cost. The council approved the position unanimously on roll call.
• Human Resources 13A – Compensation for Mayor Senden: Because Mayor Senden is the subject of the item, he temporarily relinquished the chair to Council President Jacobs. HR Director Mathis explained that Mayor Senden has been performing the city administrator’s duties since January, putting in an estimated 20–30 extra hours per week. She initially suggested a step‑one city administrator rate ($8,392/week) but the Mayor requested a midpoint of $1,500/week, and chose a start date of May 4, 2026, meaning he was not compensated for the prior months. She noted that an interim administrator through ICMA would cost ~$14,000 per week plus expenses. Councilmembers expressed diverging views: Councilmember Hafner strongly opposed, stating he was not consulted and argued the city has qualified department heads; others argued the role is necessary and that the pay is reasonable compared to the full administrator salary. The motion passed 4‑2 with Councilmembers Hourigan, Jacobs, Klarenbeek, and Rath voting aye; Councilmembers Hafner and Myers voting nay.
• Police 14A – Resolution 2026‑14: A resolution supporting the reclassification of Spearfish 911 communication officers as Class B members of the South Dakota Retirement System. Chief Smith stated the change would cost under $1,000 per officer per year and has been supported by his dispatchers. The council approved unanimously.
• Public Works 15A – Fire Training Center Change Order #1: An increase of $16,458 due to over‑excavation of sawdust and unsuitable soil, bringing the total contract to $444,058. Unanimous on roll call.
• Public Works 15B – 2025 Chip Seal Project Change Order #2: No cost increase; revised completion date to July 15, 2026, extending the time for reapplication of the chip seal without liquidated damages. Unanimous.
• Public Works 15C – DGR Engineering Services for Main Street Mill and Overlay: Not‑to‑exceed fee of $31,500 for design, bidding, and construction administration. Approved unanimously on roll call.
• Public Works 15D – Speed Limit Changes on North Ave and Colorado Blvd: Reduction from 35 mph to 25 mph on North Ave (from Safeway entrance to Recreation Lane) and on Colorado Blvd (east of 7th Street to west of Great Western Tire). Dynamic speed signs will be installed at $13,800, already budgeted. Unanimous.
• Public Works 15E – Purchase of HX30 Hydro Vacuum Excavator and Trailer: $81,443.35, sourced at Sourcewell pricing, under the $100,000 budget. Unanimous on roll call.
• Public Works 15F – Award Spearfish Creek Stabilization Project #2339A: Lowest responsive bid of $146,556 from Johner & Sons, Inc., well below the engineer’s estimate of $190,000. The project will temporarily close a section of the rec path. Unanimous on roll call.
• Public Works 15G – Resolution 2026‑15 (Safe Streets for All Grant Application): Authorizes submitting a grant application for the North Avenue Sidewalk Project. The Safety Action Plan estimated $248,431, but staff believe actual costs could be $1–1.5 million. The grant is 80% federal, 20% city match (which can be in‑kind). A public commenter highlighted pedestrian safety concerns at the Illinois Street crossing. The council approved unanimously.
• Approval of Bills: The bill list dated May 18, 2026, totaling $747,923.72, was approved unanimously on roll call.
• Appointment to Parks, Recreation and Forestry Advisory Board: Zac Eixenberger was appointed to fill the remainder of a 3‑year term ending December 31, 2027, replacing Misty Caldwell. Unanimous.
• Departmental Discussion: Public Works Director McMahon reported: (a) The Mason Street Drainage Improvement Project will be postponed to a future year due to coordination issues with Black Hills State and West Elementary and to offset budget supplements; (b) School zone signage at Mountain View Elementary and West Elementary will be upgraded to “15 MPH when flashing” signs, with the city purchasing and installing, and the school maintaining; (c) The Colorado Boulevard Chip Seal reapplication is scheduled for June 8–18, but staff will coordinate with the Camaro rally and Downtown Friday Night event on June 19. A future change order will cover asphalt patch repair and contract amendments. Community Development Director Wysocki reminded that the Board of Appeals and Planning Commission meet May 19, and the engineering design standards are expected to be brought to council for adoption in June. He also clarified that staff must review applications under adopted standards and cannot intentionally delay; parkland dedication guidelines are not enforceable by code. Finance Officer DeNeui noted the annual city audit begins the following week with six auditors from Ketel Thorstenson on site Tuesday through Friday.

Key Outcomes

• Peaceful Pines Development Agreement approved 5‑1 (Hafner nay).
• Burno Gulch minor plat and variance approved unanimously after public hearing with no comments.
• Ordinance 1418 (supplemental appropriations) passed on second reading (unanimous roll call).
• Mayor Senden’s compensation of $1,500/week approved 4‑2 (Hafner, Myers nay).
• New Fire Department Administrative Coordinator position funded (unanimous roll call).
• Resolution supporting 911 dispatcher reclassification to Class B SDRS passed (unanimous).
• Speed limit reductions on North Ave and Colorado Blvd approved.
• Grant application for North Avenue Sidewalk Project authorized via Resolution 2026‑15.
• Several infrastructure contracts and purchases awarded (fire training center change order, chip seal extension, Main Street engineering, hydro vac excavator, creek stabilization bid).
• Mason Street drainage project postponed; school zone signage project to proceed.
• Annual city audit scheduled for May 19–22, 2026.