Spearfish City Council & Board of Adjustments Meeting - August 3, 2026

The Spearfish Board of Adjustments and City Council met on Monday, August 3, 2026 at 5:30 p.m. in the City Council Chambers. The Board of Adjustments portion considered a variance request for a carport, followed by the regular City Council meeting which included multiple public hearings, budget presentations from three departments, and an executive session.

Consent Calendar

• Approved the consent agenda for the City Council meeting, which included minutes from previous meetings.
• Approved the bill list dated August 3, 2026, and salary expense/bank fees/credit card fees for July 2026, both by unanimous roll call votes.

Public Comments & Testimony

• John Dale (address 239 W. Jackson) spoke during the Board of Adjustments public hearing on the variance, asking for clarification on the setback location and expressing support for the carport ("I think a car port goes really nice there").
• During City Council public comment, John Dale spoke again, reciting the Pledge of Allegiance in German, mentioning a yellow jacket sting, and inviting everyone to the Neighbors to Neighbors Farmers Market (Saturdays 9 a.m. – noon). He did not address any specific agenda item.

Discussion Items

• Board of Adjustments – Variance for 345 N 8th Street (5:30–5:39 p.m.): A public hearing was held to consider reducing the front yard setback from 25 feet to 5 feet for a carport construction. Planning Technician Vaughan Pistofzian presented the request (applicant S.J. Bailey, property owner Lare Hamstra). The Planning Commission had unanimously recommended approval on July 21, based on three criteria: not contrary to public interest (carport over existing parking), property within original town subdivision with lot width ≤75 feet (65 feet), and unusual hardship (significant grade drop along north property line, no plan to connect 7th and 8th Street across E. Federal). No online public comments. Motion to approve carried unanimously (Klarenbeek/Hourigan).
• Ordinance 1428 – Rezone from Heavy Industrial to Highway Service Commercial (C2) at Maitland Road and Aspen Drive: First reading. Applicant Richard Clayton (Camp Canine) plans mixed-use including dog boarding, grooming, med spa, and housing. Planning Commission unanimously recommended approval. Council approved first reading unanimously.
• Final Plat – Extraterritorial Jurisdiction (500 Thonstone Road): Dividing 142.51 acres into two residential lots. Variance for right-of-way platting granted in 2024 with conservation easement recorded in 2025. Planning Commission voted 4-2 to recommend approval (nay due to non-conforming setbacks). Public hearing held with no comments. Council approved unanimously.
• Special Event Malt Beverage Licenses:
  • Crow Peak Brewing for Dakota 5.0 (Sept. 6, 7 a.m.–6 p.m., City Park) – approved unanimously.
  • Crow Peak Brewing for Black Hills Fly-In (Sept. 19, 12 p.m.–9 p.m., Black Hills Airport) – approved unanimously.
  • Crow Peak Brewing for Pit 14 Rally Event (Aug. 12–13, 11 a.m.–8 p.m., Home Source Furniture parking lot) – new location; public hearing held with no comments; approved unanimously.
• Ordinance 1429 – Budget Supplement (first reading): Adjusts budgets for administration, IT, streets, cemetery, planning & zoning, general fund, and second penny sales tax to account for insurance proceeds, Rainbow Road box culvert savings, Mr. Falcon's buyout, new city administrator hiring (Oct. 1), IT professional fees, and paying off 2015 sales tax bond. Only impact is reduction in general fund cash balance. Approved unanimously.
• Bank Signers Update: Authorized Michelle DeNeui, Angelica Tyler, Rex McDonald, and Brett Roderick as signers for city account at Black Hills Community Bank (replacing former Parks Director). Approved unanimously.
• Sports Field Agreements: Three items related to soccer/football field use agreements among City, Spearfish School District, and Black Hills State University (BHSU).
  • Second amendment to agreement with School District for Black Hills Energy Sports Complex: removes Black Hills Rapids, updates priority use period to June 1–Oct. 31, defines "Spearfish-based" as ≥51% players residing in district. Approved unanimously.
  • First amendment to BHSU agreement for Ronnie Tys Field (Sawmill Complex): extends term to 5 years, allows BHSU to provide free use of softball fields 1 & 3 to local organizations in lieu of $75/hour fee. Approved unanimously.
  • First amendment to BHSU agreement for Black Hills Energy Sports Complex: extends term to 5 years, removes Spearfish Soccer Association, updates priority use (School District first June–Oct., BHSU secondary Aug.–Oct., BHSU priority in November for playoffs), removes maintenance schedule. Approved unanimously.
• Indoor Training Facility – Spearfish Baseball Association: Council authorized staff to continue working with the association to develop bid documents and a lease agreement for constructing an indoor training facility. Motion approved unanimously.
• Memorandum of Understanding with BHSU for Campus Police Officer: Chief Smith presented the MOU for a 40-hour/week officer on campus (Monday–Friday) for three years, covering criminal offenses but not student policy violations. BHSU pays wages and equipment; city pays overtime/benefits beyond single plan. One officer to start; option to add second after evaluation. Approved unanimously.
• PSAP Consolidation with Lawrence County: Chief Smith reported a tight timeline (911 switch requires 2 months, can't be done in December). Council approved continued contract negotiations for PSAP services at a cost not to exceed $300,000 in 2027. Sheriff Dean's budget preliminarily approved by county commissioners. Motion passed 5-0 on roll call.
• Easement Agreement – Elkhorn Ridge Grazing Ranches, LLC: Temporary easement for constructing a sidewalk along Colorado Loop near Sky Ridge (until permanent sidewalk installed). Approved unanimously.
• Change Order #1 – Mountain View Elementary Project: Net increase of $14,023.60 due to discovery of oil tank and other small changes (typo in agenda noted). Majority of costs reimbursable by school district. Approved on roll call 5-0.
• Certificate of Final Completion – Airport Terminal Project: Warranty start date Nov. 14, 2025; final pay estimate ~$31,000. Previous change orders totaled ~$85,000 (2.8% of project). Approved unanimously.
• Advertising for Replacement Mechanic: Authorized to advertise for a mechanic position due to upcoming retirement, to allow cross-training during transition. Approved on roll call 5-0.
• Budget Presentations: Three departments presented their proposed 2027 budgets:
  • Community Development (Director Peter Wysocki): Requested reclassification of two positions (Assistant Planning Director to Planning Manager, Planning Technician to Assistant Planner) with ~$12,000 total budget impact; added a second Building Inspector position starting April 1, 2027; highlighted initiatives including Title 15 rewrite (Shape Spearfish), ETJ policy update, housing needs assessment (~$50,000, potentially funded by Black Hills Area Community Foundation), TIF policy review, and public art advisory board.
  • Parks and Recreation (Director Rex McDonald): Proposed operating budget $1,968,301 (decrease of $56,438 from 2026). Notable projects: ABI infield maintenance machine ($50,000), infield material for Legion field ($15,000), mini excavator for trails ($40,000 via donation), Lookout Mountain conservation easement transfer ($30,000), public art fund ($25,000). Rec Center budget $2,467,674 (increase of $186,091) due to waterslide recoding project ($200,000) and credit card fee savings (new vendor saving ~$10,000/month). Campground budget $663,590 (decrease due to water line project closure and cancellations from gas prices). Rose Hill Cemetery budget $157,266 (decrease due to completed ground penetrating radar project); expansion master planning to begin in 2–5 years.
  • Fire Department (Chief Scott Deaver): Requested one new full-time firefighter FTE (justified by call volume increase and risk of burnout). Noted volunteer stipend of $15 per call. Wildland Fire Fund budget includes zero-call scenario with revenue plug of $355,000; program is revenue generator. Capital requests: Fire training tower construction (on track for September completion), classroom building fully funded by volunteer fire association ($355,000 donation), engine replacement (2006 unit; chassis replacement option costing $500,000–$800,000 vs. $1.4 million new). Discussed need for emergency burn ban ordinance to align with county/state restrictions.
• Executive Session: Council held an executive session under SDCL 1-25-20 for discussion of building/security records. Motion to enter and later exit; adjourned immediately after.

Key Outcomes

• Variance Approved: The Board of Adjustments approved reducing the front yard setback for 345 N 8th Street from 25 feet to 5 feet for a carport (unanimous).
• Rezone Ordinance (First Reading): Ordinance 1428 rezoning from Heavy Industrial to Highway Service Commercial (C2) at Maitland Road and Aspen Drive passed unanimously.
• Final Plat Approved: The minor plat dividing 142.51 acres into two residential lots in the ETJ (500 Thonstone Road) was approved (unanimous).
• Three Special Event Liquor Licenses Approved: Crow Peak Brewing for Dakota 5.0, Black Hills Fly-In, and Pit 14 Rally Event (all unanimous).
• Budget Supplement (First Reading): Ordinance 1429 passed unanimously; second reading scheduled for next meeting.
• Sports Field Agreements Approved: All three amendments with Spearfish School District and BHSU for soccer/softball fields passed unanimously.
• Indoor Training Facility Go-Ahead: Staff authorized to pursue bid documents and lease with Spearfish Baseball Association.
• BHSU Campus Police MOU Approved: Three-year agreement for one officer with option to add second after evaluation.
• PSAP Negotiations Authorized: Council approved continuing negotiations with Lawrence County for PSAP consolidation at not to exceed $300,000 in 2027 (roll call 5-0).
• Sidewalk Easement Granted: Temporary easement for Colorado Loop sidewalk (unanimous).
• Change Order Approved for Mountain View Elementary: Net increase of $14,023.60 (roll call 5-0).
• Airport Terminal Final Completion Accepted: Warranty period begins Nov. 14, 2025.
• Mechanic Position Advertised: Replacement mechanic position authorized due to upcoming retirement (roll call 5-0).
• 2027 Budget Presentations Accepted: Community Development, Parks & Rec, and Fire Department budgets presented for initial review; further discussions expected at future meetings.