Spearfish City Council Regular Session Summary - September 8, 2026

The Spearfish City Council met for a regular session on Monday, September 8, 2026, at 5:30 PM in the City Council Chambers. Mayor Senden presided over a packed agenda featuring the acceptance of the 2025 audit, budget discussions, development agreements, and a significant operational update on the ongoing Lookout Mountain Fire. Councilmembers Hafner, Hourigan, Jacobs, Klarenbeek, Myers, and Rath were present. Councilmember Jacobs left the meeting at 6:30 PM and the meeting adjourned at 7:04 PM.

Lookout Mountain Fire Update

Before public comments, Mayor Senden and Fire Chief Scott Deaver provided a detailed update on the Lookout Mountain Fire. The state has assumed incident command. The Mayor thanked the Governor for providing air support.

• Fire Chief Deaver: Expressed deep emotion, emphasizing the relentless focus of firefighters on life safety and protection of the community. He reported no structure loss and no injuries, but noted the fire was 0% contained, adding that containment reflects the management of the fire perimeter. He highlighted that the Spearfish Fire Department is over 90% volunteer and the response was "phenomenal, if not a miracle."
• Police Chief Smith: Noted updates were being pushed through CivicReady, NotifyMe, and social media. He clarified evacuations in the Sandstone and Woodlands area were precautionary. A later update allowed residents of Kerwin Road and Lookout Vista Road to return home with proof of residency.

Consent Calendar

• The Council unanimously approved minutes from the August 12 study session, August 17 regular session, and August 26 special session.
• Nicc Quinones, Elijah Eve, and Austin Nelson were added to the 2026 volunteer firefighter list.

Public Comments & Testimony

• Rosalie Aslesen (1810 St. Joe): Expressed admiration for the firefighters' efforts and opposed assigning blame for the fire.
• John Dale (239 West Jackson Blvd): Voiced strong support for the fire department and discussed his expertise in software technology.
• Heidi McKenzie (1004 Stampede Drive): Thanked first responders and requested clear guidance on official notification channels for evacuation updates.
• Joe Jorgensen (1905 Stage Barn Circle): Thanked the state government for providing firefighting equipment and described the rapid movement of the fire and the saving of his farm buildings.
• Thais Johnson (1244 North Ames): During a public hearing, spoke in support of alcohol license applications for the Joy Krautchun Alumni Welcome Center.

Discussion Items

2025 Audited Financial Statements: Jeff Yennie of Ketel Thorstenson, LLP presented a clean audit with three minor findings: audit adjustments, a building permit fee calculation issue, and an adjustment of federal expenditures for an AIP project. The Council accepted the statements.

Resolution 2026-18 - Snow Removal Assistance Program:

• Councilmember Myers moved to amend the resolution to remove the income requirement and instead require applicants to either be aged 65 or older or have a disability. The motion was seconded by Councilmember Hafner.
• Councilmember Klarenbeek supported the amendment, stating a preference against income guidelines and arguing that financially capable individuals would not rely on the program.
• Councilmember McDonald expressed concern about expanding eligibility without first testing a restricted version.
• Vote on Amendment: The amendment to remove income and require age/disability failed (Myers and Hafner voting aye; Hourigan, Klarenbeek, and Rath voting nay).
• Vote on Original Resolution: The original resolution including the 60% Area Median Income requirement was then voted on (Rath/Hourigan). It failed to pass due to a lack of majority (Hourigan, Klarenbeek, and Rath voting aye; Myers and Hafner voting nay).
• Outcome: The resolution was not approved. The item is expected to be revisited at a future meeting.

Community Development Agreements:

• A Development Agreement with Thevery, LLC for the Nedifi Way Commercial Development was approved, which includes relocating a city water main.
• Dedication of Public Improvements Agreements were approved for both the Nedifi Way Commercial Development and Centennial Mountain Development Phase 2.
• The sale of eight additional lots to Hills View Homes in the Sky Ridge Subdivision was approved, along with the real property transfer to the Spearfish Economic Development Corporation (SEDC).
• Director Wysocki noted the Planning Commission updated its bylaws to allow the chair to vote and require dissenting voters to provide written reasons.

Finance & Budget:

• First Reading of Ordinance 1431 (2027 Appropriations): Finance Officer DeNeui presented the budget. Projected revenues are $52,258,546, expenses are $54,107,971, representing a use of cash of $1,849,425 for one-time capital projects. The budget is structurally balanced.
• Airport Grants: Approved a $4,403,000 Airport Improvement Program Grant and a $478,545 Airport Infrastructure Grant for the airport apron expansion project (City share is approx. $128,000, or 2.5%).
• Alcohol permits for BHSU football games and the Joy Krautchun Alumni Welcome Center were approved.

Human Resources:

• Second Reading of Ordinance 1430: Adopted revisions to the City Personnel Policies and Procedures Manual, including a new paid parental leave policy effective January 1, 2027. The motion passed on a 6-0 roll call vote.

Public Works:

• Approved Change Order #1 for the Colorado Boulevard Sanitary Sewer Upsize Phase 2 Project with an increase of $185,101.97 for rock excavation and box culvert boring.
• Authorized the purchase of a Curbtender garbage truck for $392,151, a 2027 budgeted purchase, to secure long-lead pricing.
• Approved the Sandstone Remediation project services from HDR ($24,461) and Campground Water Line engineering from Interstate Engineering ($2,500).
• Approved final Change Order #4 for the East Low Zone Water System Improvements Project reflecting a net decrease of $202,974.11, and accepted the Certificate of Final Completion.
• Approved an Assumption of Lease for a private hangar ground lease at the airport.

Key Outcomes

• Consent Agenda, Financial Statements, Wage Additions, Development Agreements, Airport Grants, and Alcohol Permits were all unanimously approved.
• Resolution 2026-18 (Snow Removal Program) failed to pass.
• First Reading of Ordinance 1431 (2027 Budget) was unanimously approved.
• Second Reading of Ordinance 1430 (Personnel Policies) was approved (6-0).
• Public Works Contracts: Multiple contracts, change orders ($185K increase, $202K decrease), and a $392K vehicle purchase were authorized.
• Bills and Payroll: Approved general bills totaling $2,143,276.92, additional contractor bills of $710,683.16, and August payroll/bank fees of $1,293,376.62.
• Fire Response: The Council acknowledged the successful community response to the Lookout Fire, including the rescue of 120 head of cattle by volunteers. Lookout Mountain remains closed to recreation.