Spearfish City Council Study Session Summary – May 27, 2026

Mayor Senden called the Spearfish City Council Study Session to order at 4:15 p.m. on Wednesday, May 27, 2026, in City Council Chambers. Four council members were present (Hafner, Hourigan, Myers, Rath); Jacobs and Klarenbeek were absent. City staff attended, including Finance Officer DeNeui, Public Works Director McMahon, Community Development Director Wysocki, Police Chief Smith, Parks and Recreation Superintendent McDonald, and others. The Council unanimously amended the agenda to move the Creekside Nature Area trail item to the first presentation, then unanimously approved the amended agenda. The study session lasted until 6:05 p.m. and was informational; no final legislative actions were taken.

Review of the June 1, 2026 City Council Agenda

• Staff reviewed the regular-session agenda for Monday, June 1, 2026, and answered council questions. Planned items included consent-agenda minutes, a new rec center volunteer, and advertising/letting of bids for the Sandstone Hills remediation project; the latter was moved to an action item because funds are tied to approval.
• Community Development items included TIF reimbursement/development agreements for districts 9 and 10 and an out-of-city sewer service agreement.
• Finance items included public hearings for a restaurant liquor license for Aruma SD (former Rome's building on Colorado Boulevard) and a wine/cider license for Lasagna Mountain on Yukon Place; a state-funded MOU with Dakota State University for the Secure SD cybersecurity program; and a $50,000 Visit Spearfish community grant request. Visit Spearfish Executive Director Misty Caldwell asked for $27,000 of the $50,000, including $1,200 for a laptop and $25,000 for drone/videography/photography assets, leaving $23,000 in reserve for future requests. Finance staff also proposed closing the 293 Spearfish Creek Fund by transferring $41.46 to the hydroelectric fund and recording a committed net position of $159,080.29 for creek preservation.
• Parks items included the annual 2026 weed control contract. Public Works items included change orders for chip-seal work, the airport well closeout with an approximately $346,640 savings, a $1,200 change order for Rainbow Road box cover, a Sky Ridge wellhouse change order under $4,000, and a recommendation to reject airport apron expansion bids that came in $2 million over estimate and $1.5 million over budget. The Council also planned to appoint Jancy Hare to the Parks/Rec/Forestry Advisory Board and to postpone Art and Public Places committee appointments until the full slate was ready.

Creekside Nature Area Trail Enhancement Proposal

• Parks and Recreation Superintendent McDonald presented a proposal in which Matt Polich, owner of Northstar Construction, offered to donate labor and equipment to install an approximately one-mile, 8-foot-wide surfaced trail at Creekside Nature Area. The minutes specify the surface would be 4 inches thick; the transcript says "four foot thick," which appears to be a transcription error. The surface would be clean road-based aggregate similar to the Mickelson Trail, and a 16-by-16-inch sign would commemorate a recently deceased loved one.
• The Park Board reviewed the proposal on May 21, 2026, and recommended phasing the project: phase one would surface the half-mile west-side trail, with phase two later. However, two Park Board members supported doing both phases at once. There is no direct cost to the city; similar construction normally costs $50,000-$100,000. A dedication agreement would transfer ownership and maintenance responsibilities to the city.
• Polich said he could do a test section or the entire trail, with minimal closures, and did not plan major grading in the floodplain. McDonald noted the trail is used for cross-country meets and that some teams stopped attending due to uneven surfaces. Joe Jorgensen, a local resident, supported doing the entire trail. Several council members praised the donation; one noted the community lacks compacted gravel trails, which McDonald confirmed. The item was expected to be considered for the June 1 regular session.

Western Dakota Regional Water System Update

• WDRWS Executive Director Kristin Conzet updated the Council on the regional water project. She reported 54 members, including a first East River member, and described the proposed system as drawing from the Missouri River via a 165-mile, 72-inch pipeline with a 2,000-foot lift, with intake above Oahe Dam. Three engineering options have been developed; the project now needs federal feasibility study authorization.
• Conzet said federal bills have been introduced by South Dakota's congressional delegation, passed subcommittee and judiciary review, and are heading to markup. The request includes a $10 million appropriation for a Bureau of Reclamation feasibility study, which WDRWS plans to match with ARPA and membership funds. ARPA funds must be spent by November 30, and WDRWS is entering a 2027-2028 "advocacy phase" with proposed member dues increases, including class-one members from $1,500 to $1,750 per year.
• She emphasized the area's water challenges, citing USGS study findings on aquifer recharge, and stated the Missouri River withdrawal would be 0.1 ounce per gallon and about 74 acre-feet, with no impact on Oahe Dam or downstream flows. She also described the defeat of state "Greenhorn" legislation that would have imposed costly drilling studies in western South Dakota. Council members voiced continued support for the project; no formal action was taken.

Highway 85 North Annexation Area Discussion

• Community Development Director Wysocki led a policy discussion about the Highway 85 North annexation areas, emphasizing no action was required. Area 1 was annexed in 2008 and Area 2 in 2013, with agreements stating the city has no obligation to extend utilities. The areas are largely zoned agricultural; the 2013 agreement includes conditions for private water/sewer and allows commercial uses without subdivision. No development applications are currently pending.
• Staff outlined options: maintain the status quo/urban-level expectations, allow rural-level development standards with individual well/septic systems and paved roads without curb and gutter, pursue public-private partnerships, or consider de-annexation. Staff recommended considering option two and noted the current 8-acre minimum for wells and septics may be reduced, with planning commission support for removing the zoning requirement. Discussion included reducing the minimum to 2-5 acres; Lawrence County allows wells/septics on 2-acre lots, and a Black Hills septic study recommends 3.36 acres.
• Landowners and developers expressed support for option two. Rick Furnish said his group wants to subdivide 40-50 acre tracts and cannot justify urban infrastructure. Joe Jorgensen said he owns 80 acres in the annexation plus another 300 acres south of it and wants flexibility for future use. Alan Crago described a 46-acre commercially zoned parcel and said a potential buyer has waited about two years to start a 4-5 acre project; he envisioned 5-8 acre parcels with state-approved water/wastewater systems.
• Council members expressed consensus for option two, with individual development agreements tailored to each proposal, and supported reducing the eight-acre lot-size requirement. No vote was taken.

Public Comments & Testimony

• Public comment was opened at 5:53 p.m. and closed at 5:55 p.m. Joe Jorgensen urged continued council support for WDRWS, saying the region needs the water, and recommended accepting Matt Polich's full Creekside trail donation. No other public comments were made.

Departmental Discussion

• Police Chief Smith discussed citizen complaints about mini-motorcycles, motorized scooters, and e-bikes on rec paths and sidewalks. He noted the technology is advancing faster than the law; many 250-watt devices are unclassified, state law currently allows use on rec paths, and enforcement is difficult. Council members expressed support for exploring an ordinance and safety education, while acknowledging it could push riders onto streets. The item will be brought back for future discussion.
• Wysocki reported that Hill Street apartments are advertising leases beginning June 1 but have not received a certificate of occupancy because the developer has not met water booster station obligations, creating fire-suppression pressure concerns for the building and neighborhood. The booster pump is several months away, and staff are working with the developer on an interim solution.

Key Outcomes

• The Council unanimously approved the amended study session agenda and later adjourned at 6:05 p.m.
• No formal votes were taken on policy items, but consensus emerged on the Highway 85 North approach: consider rural-level development standards through individual development agreements and work toward reducing the current eight-acre well/septic lot-size requirement.
• The Creekside Nature Area trail donation was received favorably and may be placed on the June 1, 2026 regular City Council agenda for approval.
• Council members reaffirmed support for the WDRWS project and its funding strategy.
• Staff will continue work on an interim water booster solution for Hill Street apartments and will return to council for further discussion on motorized-use restrictions on rec paths and sidewalks.