Spearfish City Council Study Session – August 12, 2026

The Spearfish City Council held a study session on August 12, 2026, at 4:15 PM in City Council Chambers. The council reviewed the upcoming regular meeting agenda, conducted the annual review of open meetings laws, and received a detailed presentation on the 2027 Public Works budget. The meeting adjourned at 5:31 PM.

Consent Calendar

• Agenda Approval: Council President Myers called the meeting to order. Councilmember Klarenbeek moved, seconded by Hafner, to approve the agenda. The motion passed unanimously.

Public Comments & Testimony

• Mark Watson (Editor, Black Hills Pioneer): Commented on the city's open meetings law briefing, noting that while South Dakota's open meetings laws are not the strongest, most local governments try to comply. He provided an update on the Open Meetings Commission, stating that since November 2024, 16 complaints had been filed statewide, with 75% (12 cases) resulting in findings of violations. He cited recent local violations in Central City, Sturgis, Piedmont, and Green Valley Sanitary District. He commended the city for holding the annual review.
• No other public comments were received, either in person or via Zoom.

Discussion Items

Annual Review of Open Meetings Information

• Finance Officer Michelle DeNeui led the review as required by SDCL 1-25-13. She outlined key points: open meeting laws ensure public access to government, with penalties including fines and jail time for violations. She explained what constitutes an official meeting (including electronic communications), agenda posting requirements (City Council agendas posted ~75 hours in advance, study session agendas ~25 hours in advance), packet materials (must be online 24 hours prior), and proper procedures for executive sessions. She cautioned against serial communication via email or text that could create a quorum for discussion.
• Councilmembers and Mayor Senden affirmed that they do not engage in private discussions that circumvent open meeting rules; one-on-one conversations for education are acceptable, but no decisions are made outside meetings.

Presentation of 2027 Public Works Budget Requests

• Public Works Director Adam McMahon presented the preliminary 2027 budget for the Public Works division, covering 13 departments. Total request is a little over $31 million, a decrease of about $1.7 million (roughly 5%) from 2026's $32.7 million. This does not include transfers out (e.g., PILT to the general fund).
• Personnel Changes: Three changes: an Electrician/Traffic Signal Technician (new position in Electric), a Facilities Supervisor (internal promotion only in Government Buildings), and a Project Engineer in Public Works Administration (budgeted for a regrade after obtaining professional license).
• Capital Projects & Master Plans: Total of $12,065,249 (adjusted for a $1,100,000 transfer from water to airport for a waterline). Major projects include: airport apron expansion ($6M, heavily grant-funded), 10th Street improvements (design for 2028 construction), airport water main extension, Sandstone Hills Drive remediation, Yukon Place water main replacement, DOT highway 85 roundabout (city cost share), ADA crosswalk improvements, water meter tower software (to enable remote reading from city hall), pavement preservation, and Main Street mill and overlay ($400,000, out for bid with potential fall completion). Master plans: stormwater (completion in 2027, $125,000), water (completion, $120,000), and facility master plan (start, $100,000). Numerous projects were postponed due to budget constraints; the capital improvement plan will be updated and brought to council for future input.
• Vehicles, Machinery, and Equipment: Total of $2.7 million, including: three pickups and one SUV ($1,254,000 from motor pool, $60,000 water, $980,000 sewer, $400,000 solid waste); plow/dump truck replacement ($300,000), dump truck ($ ? – actually a front end loader and other equipment specified, but total around $2.7M includes police vehicles $160,000 for two replacements and drill guards). The motor pool fleet has 62 vehicles (excluding police), with 14 vehicles over 20 years old and 17 vehicles between 15-20 years old. Requested authorization to start purchasing long-lead items early.
• Council Questions:
  • Klarenbeek asked about productivity impacts from deferred equipment purchases; McMahon noted mowers are behind on replacements and they are exploring centralization. Klarenbeek also asked about raising the sewer fund reserve; McMahon agreed a capital plan is needed first.
  • Myers asked about remote water meter reading (currently done neighborhood by neighborhood; new software will allow reading from city hall). He inquired about the facility master plan (will assess growth needs, e.g., library expansion). On 10th Street project (scheduled 2028), McMahon noted no grants are available and schedule may shift due to budget. Main Street mill and overlay may be completed fall 2026 if weather permits. Fleet size (62 vehicles) – McMahon aims to build a capital plan to manage replacements and explore reducing fleet size through utilization audits. Pavement preservation projects will be guided by the recently completed pavement condition study.
  • Hafner asked who receives the three new pickups; McMahon said no specific assignments yet, but newer vehicles are prioritized for high-utilization areas while under warranty. Hafner asked if the city could skip some purchases; McMahon said that risks vehicle breakdowns, noting two large trucks have already become inoperable this year.
• Police Chief Colin Smith provided a brief update on the Sturgis Rally, noting it is busy with all hands on deck, appreciation for three rally officers, and that the department has two officers certified for the motorcycle, increasing its use this year.

Key Outcomes

• No formal votes were taken on the budget or other agenda items; this was a study session for discussion only.
• An agenda item to authorize early procurement of long-lead equipment will be considered at the August 17 council meeting.
• Special Session Announced: Finance Officer DeNeui announced a special city council meeting for August 26, 2026 at 4:15 PM to award bids for public works projects (including Main Street mill and overlay and other projects out for bid).
• The council will have one more study session on September 2, 2026 to finalize budget feedback before the first reading of the appropriation ordinance on September 8.