Hi Grace and welcome to Orchid Board
Orchids in Spag generally need repotting yearly, but you don't know how long it's been since the last repotting so it is probably a good idea to repot it.
If you have been getting on well with the existing Sphag then you could carry on with that. Not everyone gets on well with it, but others love it. I find it works on some types of orchids for me and not for others, but it can all depend on your conditions.
I'm not sure the best timing for when you should repot. The Dendrobiums I have are a different type to yours but I find with those that repotting when there are new canes growing is a good idea, this is when they also put out new roots (from the base of new canes) and it's good to repot before those new roots apear (but not too long before) so the new roots get dug in well to the new medium. That's why I repot when I first see new canes as then I know the roots will be along not too long after.
Not sure if that's the best with your sort or not so hopefully someone else will be along who knows more specifics for this species.