Spearfish City Council Regular Session – August 17, 2026

The Spearfish City Council met on Monday, August 17, 2026 at 5:30 p.m. in the City Council Chambers. Mayor John Senden presided with Councilmembers Hafner, Klarenbeek, Myers, and Rath present; Hourigan and Jacobs were absent. Staff included Finance Officer Michelle DeNeui, Community Development Director Peter Wysocki, Public Works Director Adam McMahon, Police Chief Colin Smith, Fire Chief Scott Deaver, Human Resources Director Jody Mathis, and others. The meeting adjourned at 7:14 p.m.

Consent Calendar

• Approved minutes from the July 29, 2026 study session, August 3 regular session, and August 3 Board of Adjustments meeting.
• Approved the Treasurer’s Report dated July 31, 2026.
• Approved Temporary Construction Easements for the Yellowstone Place Drainage project.

Public Comments & Testimony

• John Dale (239 West Jackson) spoke about unregulated technologies (citing U.S. Patents 5159703 and 4877027) and their potential for misuse. He urged the city to support open market improvements for such technologies and verify safety. No other public comments were received.

Discussion Items

• Proclamations: Mayor Senden proclaimed August 26, 2026 as Women’s Equality Day and August 30–September 6, 2026 as Spearfish Bike Week. Representatives from the bike community highlighted the week’s activities, including the Dakota Five-0 race.
• Wage Additions: Approved three budgeted wage additions (Communication Officer $26.95/hr, Police Officer $32.84/hr, Recreation Assistant (pt) $22.67/hr) by roll call (4-0).
• Rezoning (Ordinance 1428): Public hearing opened and closed with no comments. Council approved the second reading rezoning 4.7 acres at Maitland Road and Aspen Drive from Heavy Industrial (IH) to Highway Service Commercial (C2) (roll call 4-0).
• Supplemental Appropriations (Ordinance 1429): Approved second reading, allowing early payoff of the 2015 rec center bond ($5,000–$7,000 estimated savings) and internal budget transfers (roll call 4-0).
• Tax Increment Assignments (TIF #9): Acknowledged two assignments of TIF revenues—one to South Dakota Housing Development Authority and one to Minnwest Bank—both signed by Spearfish Multifamily, LLC.
• Special Event Liquor Licenses: Approved four licenses:
  • Crow Peak Brewing (Aug 22, 5–7 p.m., Spearfish Museum fundraiser)
  • Sawyer Brewing (Aug 29, 11 a.m.–9:30 p.m., Campground Trails Grand Opening)
  • Spearfish Brewing Company (Aug 29, 4–9 p.m., same event)
  • Spearfish Public House (Sept 4, 3–9 p.m., Dakota Five-0 Pre-Party)
• City Attorney Contract: Approved employment contract for Ashley McDonald at salary $166,150.40 (Grade 26, Step 7), with 80 hours credited PTO and 7.7 hours per pay period accrual, plus three months severance. She starts September 4, 2026 (roll call 4-0).
• Personnel Policies (Ordinance 1430): Approved first reading of revisions, including a new paid parental leave policy (4 weeks for non-birthing/adoption, 6 weeks for birthing parent). Staff noted Rapid City offers the same benefit.
• Camera System Replacements:
  • Rec Center: Approved Convergint proposal for $187,558.96 plus $1,200 software licenses (55 new cameras, servers, cabling). Funded via budget supplement from Mason Street project savings (roll call 4-0).
  • City Hall/Police: Approved Convergint proposal for $123,107.97 plus $1,200 software licenses, with system integration for public safety benefit (roll call 4-0).
• Public Works:
  • Approved Mead & Hunt contract for Airport Water Main Extension construction staking and testing ($78,000 max). Project completion targeted for 2026 weather permitting.
  • Approved Change Order #4 for Colorado Boulevard Roadway Improvements ($29,434.35 increase) for phase two tie-in adjustments and subgrade stabilization.
  • Approved five vehicle/equipment orders (budgeted for 2027) to lock in prices and avoid long lead times:
    1. Plow/dump truck ($272,980) from Sanitation Products Inc.
    2. Dump truck ($207,188) from Sanitation Products Inc.
    3. Front-end loader with V-plow ($293,205.48) from Butler Machinery
    4. Camera van and camera ($311,647) from Flexible Pipe Tools
    5. Sewer jet/vac truck ($569,957.21) from Aquatech All passed by roll call (4-0). A garbage truck will be brought later when quote is received.
• Bills: Approved the bill list totaling $599,201.39.

Key Outcomes

• Decisions: All motions passed unanimously, with roll calls noted above.
• Budget Discussion: Finance Officer DeNeui presented the 2027 proposed budget ($56,900,679 total expenditures, $53,524,006 revenue, $3.4 million use of cash balance). General fund expenditures increased 46.36% from 2023 vs. revenue increase of 18.7%; staff noted the increase is mainly due to wage equity adjustments and capital projects. Councilmembers raised concerns about cash balances (projected $13.4M end of 2026 and $10.9M end of 2027 above reserves) and the need for future rate adjustments for sewer SRF loan eligibility. Staff deferred further discussion to the next study session.
• Next Steps: Final budget questions due before the September 8 study session; first reading of budget ordinance set for September 8, second reading September 21. The city will host a 9/11 remembrance ceremony on September 11 at 8:46 a.m. at the fire station.