00:00:13,300	It’s the 28th of July. It’s just after 5:15. We’re in the Tom Baker room of the city County building. This will be the board of City Commissioners regular meeting. But before we start, we will stand for the Pledge of Allegiance. I pledge allegiance.

00:00:36,070	To the flag of the United States of America, and to the Republic for which it stands. One nation under God, indivisible, with liberty and justice for all. We’ll call the meeting to order. If we can call. Roll, please. Commissioner Risch here. Commissioner dull here. Commissioner Connelly. Here. Commissioner Holt here. Mayor Schmitz here. Our first item is public comment.

00:01:01,930	Public comment period is limited to the items on this agenda and the consent agenda. Or anything in the regular agenda. That’s not a public hearing. And the prior meeting’s agenda. Anyone who wish to speak, please come forward. Tell us the topic you’re speaking to. Sign in and give us your name. Please. A second call for public comment.

00:01:28,070	A third and final call for public comment. Seeing no one rushing to the mic, I’m going to close public comment. Commissioners, what are your wishes with regard to the consent agenda? I actually had a question for Julie. Mr. mayor, if that’s right. Sure. Um, just just a quick question item.

00:01:52,830	I, um, was, uh, I just had curiosity. How come the entire definition of growlers was removed? Okay. Oh, sorry. Um, you can answer it, but this is a call for public. Sorry. On the consent agenda. So it’s not actually the public hearing, but maybe you. Can. I’ll retract it. Okay. So not to just not to get us off track as well.

00:02:13,470	So, commissioners, what are your what are your wishes with regard to the consent agenda? Move to approve.. Second. Any discussion. And I’ll just during public hearing next meeting, discuss it or even ask the question. Uh, Julie, in between. Uh, no discussion. If there’s no other discussion, I’ll call roll. Commissioner Doll. Yes, Commissioner. Connolly.

00:02:42,870	Yes, Commissioner. Holt. Yes, Commissioner. Risch. Yes. Mayor. Schmitz. Yes. Moving to the regular agenda item A, consider requests from the Bismarck Mandan Convention and Visitors Bureau. Uh, Executive Director Sharon Grossman to present her 2025 annual report. Sherri, go ahead. So, my name is Sheri Grossman. I’m the CEO for the Bismarck Mandan Convention. Visitor.

00:03:37,800	Is the mic on? Doesn’t sound like it. No. There you go. Hi. My name is Sheri Grossman, and I’m the CEO for the Bismarck Mandan Convention Visitors Bureau. Because I’m sure, Commissioner. All right.

00:03:57,600	Um, thank you for allowing me to be here tonight to give you a quick update on some of the things the Convention and Visitors Bureau has been doing this past year. I want to start by sharing our mission. So our mission is to promote engaging visitor experiences resulting in community economic growth and quality of place. Um, just to give you a little bit of background on how we’re funded.

00:04:13,100	Our main funding source is a lodging tax. We get 75% of the 2% lodging tax. Um, we also have we are also a charitable gaming organization. So we currently have four sites. And then a small amount of our income is membership and visitor sales. And our, our visitor center.

00:04:33,670	So I’m gonna start out with some numbers to help show you the significant impact that visitors have on our economy. So this past year we used moved to using placer AI to obtain this data. You probably hear placer a lot. A lot of retail places use that.

00:04:50,630	They recently added a visitor’s component, so that helps make it a good product for CVS. And we can track the visitors expenditures. So normally all the data I give you is Bismarck and Mandan together. Placer AI separates the two. So these next two screens, the two will be separated. So in 2025, visitors had 1.7 million trips to Bismarck.

00:05:12,870	Of those trips, 65% were overnight and 35% were day trips. Anyone that lives in Bismarck, Mandan or 50 miles out are excluded from this data. Yes. Mayor. How do you come up with the 1.7 million trips? 2.1 million? I could see the visit, but the visit nights. What if. What if somebody comes and stays in my basement? You. You can’t.

00:05:35,270	That’s not counted. That’s not counted. Not counted. Is there a hotel? Yes. They have to stay in our hotel. Um, Airbnb, if they report it. Okay. And then how do you figure out their spending? Do you have an average? And you multiply? Um, this is mayor and commissioner.

00:05:52,930	This isn’t any of our data. This is all data that placer AI collects. So they collect that on on, um, expenditures. A credit card mostly is what they get it on. They also have access to the hotels. Their information. Okay. But the 1.7 million trips. That’s 1.7 million. There was seven, 1.7 million trips.

00:06:18,670	The reason they say trips is one person might have been here several times. So it’s that many trips to Bismarck. But how do you come up with 1.7? Is my question.

00:06:35,200	The tracking from placer, the the people that are in our community that are not locals or residents, and they also can track so specifically that they know that people that commute here. The phones that basically sleep here every day are not tracked in here. So so your cell phone is the device that’s. Usually cell phones and credit cards. Yep. Wow. I know, I know. You can turn off that if you want. On I turn off all I can.

00:06:57,430	You can. Go ahead. Mr. Conley. Commissioner. Risch, uh, when. Kate. From the downtown owners presented the app that they track with. There was a lot more delineation. And, yeah, it was like, let’s go back to rotary phones. I get it. Oh, yeah. We can. There’s a lot of information we can get.

00:07:19,400	Um, this is like a high overview on it. So those trips generated 2.1 million hotel nights, and those visitors spent $300.6 million while they were here. We can see a lot of spending categories. I just gave you the top three. Retail was 101.1 million, hotels 77.8 million and restaurants 26.4 million. So the next slide is Mandan.

00:07:48,200	Just to give you that information. Um, 208.9 thousand trips, 64% overnight and 36 day trips. Those trips generated 346.40 8.6 thousand hotel nights. The direct expenditures were 14.9 million. Their top three categories were the same three. Just one and two were reversed. Hotels were 7 million, retail 2.2 and restaurants 1.1.

00:08:17,600	This next slide shows the impact meetings and conventions have in our community. Um, they really have a significant role in our economic impact. So the top half of the slide is meetings and events that were held here in 2025. This is in every meeting that was here.

00:08:36,900	These are the meetings that my staff worked with. And they were multi-day meetings. We don’t really count the one day ones. So we worked with 330, 339 meetings. Those meetings brought in 287,315 attendees, and they spent $3.1 million while they were here. The bottom half of the screen is what our sales staff worked on in 2025.

00:09:01,730	So it could have been something that maybe was held in 2025, but more than likely something for a future year. They booked 355 meetings and events that will generate 96,410 hotel room nights for an estimated 273,000 attendees. That will spend $28.6 million while they’re here. I think it’s significant to point. Out we have a question from Commissioner Dull.

00:09:24,300	Yes. Thanks, mayor. Sherry, just a question. You said the direct economic impact was is it 3.1? On the screen it says 31. It is 31. Okay. Yep. Sorry. No, I just that’s kind of a big difference. Yeah. The big, big difference. Yes. Thank you. It’s it’s 31. You’re correct. Um, of that 28.

00:09:44,070	6 million that our team booked, 7.9 million of that will be regional, national, international visitors. So out of state money coming into our community. There we go. Um, so our destination master plan was completed at the end of 2025.

00:10:15,200	The CVB retained JLL to conduct this initiative that will serve as a strategic roadmap to guide the future of tourism in our community. The process involved JLL conducting meetings with a steering committee, focus groups, individual sites, individual stakeholder meetings and an extensive research process. This comprehensive plan will help solidify Bismark Mandan position as a tourism destination and provide long term improvements to elevate the visitor experience. The document is over 100 pages, so it’s very extensive.

00:10:41,800	Just going to give you a little bit of a high level overview here. Everything is divided into seven pillars. So everything that’s in this 100 page document would fall under one of these pillars. Destination experiences destination infrastructure events and festivals. Destination marketing, community engagement Missouri riverfront activation and Bismarck event Center. Strategic strategic partnership. Go ahead. Commissioner.

00:11:10,170	Mayor. Share the riverfront. It looks like it’s coming along. Will it be done this year? By this fall? Do you think or what? What’s the status? A mayor Commissioner? Um. We are actually, I’m in a about a month. I’m on board. Is having a walk through down there.

00:11:27,730	Um, it’s not going to be done this year. I think they’re going to get a lot done this year. The first phase of it will be done sometime next summer. Okay.

00:11:42,770	And one of the, if I may, one of the concerns I’ve heard is where are people going to park? If it’s a great big event, it’ll be a struggle to have to maybe park at Pioneer Park and walk over. Or what are your thoughts on that? That’ll be it. It’s always an issue. Parking? Yeah. Mayor. Commissioner, that that will continue to be a problem. Um, there’s no doubt about that.

00:11:57,070	I think the planners have done a really nice job of it. They’ve done some parallel parking along the edge to kind of shield it from it, so that if there’s children running in there, there’s parallel parking along there.

00:12:11,530	So right next to the road, you know, kids won’t be able to come out of there. So it of course, you know, will be something that will have to be worked on it. You know, maybe some of the larger events, they’ll have to bus from places. But, um, hopefully they’ll come up with some plans and from some other areas.

00:12:31,730	So our plan is a ten year plan that will evolve over time. It includes recommendations on how to move our communities forward and what is really needed to get the greatest economic impact. Some things will move forward. Some ideas will change and others might not emerge there. So there’s numerous points under each phase.

00:12:52,530	I’m just going to give you a high level overview, just mentioning a few. So the first phase one, the foundation, the first 1 to 3 years developing a foundation, including new event activation and a hotel study. Phase two build and activate, possibly a convention hotel construction and seen larger events and visitor volume. And then phase three grow and lead.

00:13:16,230	By this time we should be hosting many more citywide conventions, and tourism is viewed as a permanent economic driver. So one of the initiatives that was highlighted in the DMP was a need for a community events calendar. This wasn’t something that we didn’t really know about. We knew we needed one.

00:13:36,270	We it’s been on our radar for a long time, but we moved it to the front of the list and a few months ago implemented a community wide event calendar. Um, the reception to it has been great. People at plan events are very excited about it. People looking for events are excited. It’s interactive and continually updated.

00:13:56,570	There’s a lot of information in there and it could look a little overwhelming, but it’s very customizable. You can search with filters by day type of event. Organizations. I think the best part of it is there’s a minimal need for people to submit events.

00:14:14,730	We’re scraping over 300 websites and Facebook events daily. Yodel, the company that we work with, is on this, has been trained to scrape the sites every 24 hours, so the information is continually updated. For example, you had an event on there and it was going to be 8 to 4 and you change it and it’s now going to be 9 to 6.

00:14:32,000	You change that on your website or whatever form you have it on. This will scrape it at night and pick it up so you don’t have to go in and change that. It’s technology can be great. We do still encourage people.

00:14:46,070	If your events aren’t there, submit them and they’ll go through our process and we’ll get them on there. Um, the general public, you can sign up and get weekly events, weekly emails of events too. So if you don’t want to check back all the time, but just kind of want to know what’s happening every week. You can do that.

00:15:03,870	Um, another thing we implemented this year is convention. Event business is very competitive. We’re always looking ways to make sure this is the best place and the easiest place to have their meetings.

00:15:24,130	So we now do event microsites, a free offering for meeting and event plan planners so our sales team can set up a link that includes registration accommodation. If we’ve gotten hotel blocks for them, that would be in there. Or we can put the live rates for the hotels, local promotions, restaurants, shopping and more. So the sample I have up here is the Williston Basin Conference, which we had this May.

00:15:40,200	We initially thought the people that would use this would be like the smaller groups that maybe didn’t have a website. The Williston Basin Conference got on board with it right away, was very excited about it. It was one place where they could direct their attendees with all the information. The nice thing this has an interactive map.

00:15:56,330	So this was held at the Bismarck Event Center. So when the map is in, there, attractions and restaurants and shopping, you can see from the map where those are. So it kind of helps guide them through our community.

00:16:10,230	Anyone that’s a member of the CVB and offers a coupon, those those are right on there for them. So it’s a very nice offering. Um, it also is good for us. It kind of helps us track, um, the visitors. We also started a new online store this year, um, where you can shop from anywhere. Um, we can ship it to you.

00:16:30,970	Or if you’re local, you can shop online and schedule a pickup to just, like, target. Um, this gives us an opportunity to showcase some North Dakota products and help promote the small businesses that we work with to supply some of the unique items that we carry. So we talked about technology, AI. We didn’t want to be left out of this AI world.

00:16:52,870	So we added a new AI tour guide on our website. I believe we were the first CVB, and maybe still the only CV in the state that has done done this. So it’s designed to keep people on our website and help them with local research and plan to spend more time in Bismarck and Mandan.

00:17:11,930	So hopefully this will work, but we have a sample that we’re going to show you. So into this, we put the information in and said, we’re planning a trip to Bismarck Mandan for some back to school shopping. Um, we’re traveling July 20th through the 23rd.

00:17:32,270	Can you recommend hotel for a family of four, including attractions, activities that we can do together or individually? We’d like some local some restaurants and local coffee shops, so it takes a little while while it thinks it’s through. So that’s why we did it ahead of time and recorded in here.

00:17:46,030	But you’re going to kind of see how it’s going to come up. It’s going to come up with some hotels. The links are all on there. They can click and go to it. Um, we’ll come up with some restaurants, some shopping, just like any tool, if it doesn’t have what you want, you can ask it for some different options.

00:18:00,000	You can say, this isn’t the kind of restaurant you wanted. You can change the search completely, but if you like what it has on here, when it’s done, they’ll be a little box up in the corner. You can download it so you kind of have it all downloaded. If it was just what you wanted, it’ll be right there.

00:18:16,000	Um, now, this is a very extensive one. You could just go in and say, I’m looking for a Mexican restaurant. You know, it can kind of be anything you want. This now will also pull from that community calendar that we talked about. So if they’re asking I’m coming this weekend. Tell me some things I can do this weekend.

00:18:31,000	It will incorporate that. So it’s really nice. It’s done some itineraries in there. And then at the bottom we have our phone number if they actually want to call and talk to a person, we can kind of help them through that.

00:18:46,600	Also, the nice thing about this is we get the questions that are asked so we can help us build a better website, and also let our members know a little bit, maybe what what we’re hearing and what they’re looking for. Go ahead. Commissioner Doll. Thanks, mayor. Um, just a question.

00:19:09,130	Does that look at all the businesses in Bismarck, Mandan, or just member businesses? Mayor and commissioner? Um, it’s designed to look at our members first because that’s a benefit of being a member. After that, it will look at others because, um, we don’t have a large membership, we have a smaller membership, and we wouldn’t want someone, gee, they want to come here and they’re going to be building a home.

00:19:23,770	They want to know if we have a Lowe’s and all those things. We wouldn’t want them to think we don’t have those. So it will have that too. But it won’t have the link. If you’re a member, you’ll have a link. The others will just be mentioned. Thank you. Yeah. Mr. Connelly. Mayor, commissioners. Sherri, thanks for the presentation.

00:19:42,170	If I could get that 100 page document emailed to me so I can look through that to. Mayor and commissioner, I can get you a copy of it. I can’t email it because it’s not in that format because of the volume of it. Okay. But I can get a copy of it. Okay. I can stop by.

00:19:56,370	Um, so we’re located at 1600 Bridgeport Drive, and we have a visitor’s information center inside there. Um, the in the summer, we’re open Saturdays and Sundays. So as of June 30th, of the 50 states, we had visitors from all but 12 states that stopped in.

00:20:15,600	You can see the 12 up there that are different color. They’re the only 12 states that haven’t been in there. Um, it’s kind of a big thing. If it’s your 50th state. They know that some of them. So they come into the visitor center. So we have certificates for them. And, um, right now we’re giving some other prizes for that.

00:20:32,830	We have had visitors from Canada, Mexico, Germany, Italy, Scotland and France. So a total not county North Dakota visitors because we don’t track those out of state and out of the country. We had 1332 in the first half of this year. That stopped in the visitor center.

00:20:56,200	So, um, lastly, I want to give you an example of just how important tourism is to our economy and the significant impact. Just one large conference can have. These last three sides aren’t pretty. I just got this information at the end of the day from our reports, and I just, um, snapped them in here.

00:21:12,870	So the Wilson Basin Conference and in fairness, this is our largest conference. But it was here May 19th through the 21st with 2800 attendees. So this diagram shows the visitor journey on the left side of it. It shows the last place they were before they came to the event center. The right side shows the first place they went after.

00:21:34,100	Can you make that any larger? I can’t just because of the format that it came in, I can. So if you wouldn’t mind getting these slides to us. I’ll absolutely do that. I’ll absolutely do that. See it on the screen. Okay. Sorry. I will absolutely do that.

00:21:50,700	Hopefully the next one’s a little bit better. Um, so just for one they left there 23.6. Went to hotels, 12.1 went to dining, 9.1 went to shops and services, and only 8.3 went home. So that just kind of shows you the impact of it there.

00:22:10,400	Um, the next slide, and I bet you probably can’t see this either. This was just a screenshot. I quickly grabbed this side slide shows the impact of the event. This data was exported from the economic impact calendar that we subscribed to, and it’s provided by Destinations International and Oxford Economics.

00:22:30,730	So this is the standard for measuring impact for meetings and events throughout the United States. Um CVB use. So this conference had a direct impact of $2.1 million. Um, and the next slide, I’ll show you and I’ll get these to you after, um, it’s going to be really hard to see. So I’ll give you some of these numbers. So it was good. Until that one.

00:22:52,570	Oh, sorry about that. Um, so the first column and to let you know, this isn’t data that we think will happen. This is this is data that we put in to this. And this group provides it back to us to get this information. It isn’t. We just don’t put in what we think.

00:23:15,470	We we went talk to the meeting planner. And this we have a form that they have to fill out. They tell us what they paid for rent, what they paid for food, what they paid for AV. And then we take the hotel information that we have, and then we check with the event center to see if anything was missing on that.

00:23:28,870	And then I gave this group the tax rates for our community. And then so the data we have here, if you did this conference in Chicago, it would be way different. So this is just for us. So the direct impact was $2.1 million for this conference.

00:23:52,100	The indirect when the dollar starts to roll around in the community was 1.5. So the final impact for the conference was $3.75 million. Um, some information that you obviously can see on the screen now that I thought would be information important to you is the local taxes, the local taxes, the direct impact was $70,000, indirect was

00:24:14,770	18,445. So the total tax impact for just local, not the state, because in the top has state and federal as well, was $86,000. This conference directly supported 964 jobs while it was here. The indirect the final was 1200 jobs. Commissioner Doll. Thank you.

00:24:41,300	Thank you, Mayor and Commissioners chair, can you explain a little bit more what indirect tax is? What does that mean? So direct is the money that they spend while they’re here. So this is direct expenditures.

00:24:58,700	It’s it’s money that was spent either the planners spent on the conference or the people that were here spent while they were here. The indirect is as the dollars roll through the community. So if you were in this store and you spent this money, then the workers that in that store had jobs while they were here, so they can take their money and spend it, or the owners of the store had more income so they can expand

00:25:15,200	or use the money through the community. So it’s how the dollars roll through the community. This is new to us. We’ve never reported that because we didn’t have the tools for doing that. We’ve just always done, um, impact. So this is the industry standard. What the rest of the country uses to predict this.

00:25:33,300	Thank you. And essentially, on that indirect, that’s probably the one time turn. There’s probably additional multiple turns after that that yeah, it’s typically a seven multiplier. So if we did $1 million of new business in the community, ultimately the impact is probably closer to seven. But that’s over more than that three day period.

00:25:55,200	That’s over the year basically. And the one thing I asked him because this was actually going to be honest, this was the first report we’ve run in our new program.

00:26:08,600	And I asked what the other taxes were, because if you could see the screen, I thought you’d be asking me what the other taxes were. And, you know, they were naming a whole list of things. And I said, well, what if we don’t have those here? And they said, well, if your community doesn’t have the other, it’s not part of it.

00:26:23,530	This would be things like utility field fees, airport fees, parking fees, public service fees, licensing, things like that. All right. Any anything else? That is it. Unless you have any questions for. Me. Are there any. Go ahead, Commissioner Risch. Mr. Mayor.

00:26:44,270	Commissioner Sherry, how about the TR library? I would suspect people would fly in the Bismarck, rent a car or do something that should have a positive impact on our tourism. Mayor and commissioners, I definitely think it will. Um, I think from what we’re hearing, a lot of people will fly in. I think this should help our off season market a little bit for the leisure travel.

00:27:01,870	Summer is really big for us, for leisure, and I think this is going to extend that season as they’re going through here. I was at the library. Fantastic. I highly recommend, um, the other question I have the city currently owns your building and maintains it. Is that the status today? So we have a we negotiated a deal. Oh, I didn’t mean to upset it.

00:27:24,870	So no, it’s not upsetting anything. Um, so they they basically rent the building from us for a dollar. They take care of all the regular maintenance. We have to take care of infrastructure, um, in exchange for that, we receive back to support our activities of the event center.

00:27:43,700	A three year pledge, uh, totaling over $1 million to help us a re-engage the event center and get it up and going, which there’s a plan in place for that in this year, 2026. There’ll be additional dollars and 27 and then 28, and we’ll negotiate potentially beyond that.

00:28:08,730	But the partnership with the Convention Visitors Bureau is extraordinarily important to us. It certainly is important for the event center, as we try to have that be a driver of these tourist type activities, be it a convention or a an artist coming in to play.

00:28:26,670	And we need to do some things to start drawing those people here, those artists in particular, or our convention here, so we can activate the community as a whole. So, so that that was an exchange for we weren’t collecting very much rent on the building anyway. And that building was purchased with grant dollars. And there was if there was a way we could figure out how it could actually probably transfer it, we would. So we’re.

00:28:41,400	Going to continue to own it and maintain the structure overall. The overall infrastructure. So like. The outside, you know, we take care of the inside. Right? Okay. Commissioner Hall and then I think Commissioner Connelly. Oh okay. Thanks, mayor and commissioners.

00:29:02,000	Sherry, is there a breakdown of, you know, visitor numbers or, you know, money coming into the community between, you know, of conventions versus, you know, sporting events, you know, to filter, you know, find out, like what I’ll say, raw tourism or people coming in for shopping versus, you know, I’ll say raw tourism where it’s like, you know, folks that go

00:29:17,400	to like, you know, the Black Hills like that, that would be where it’s like we’re going to the Black Hills for the Black Hills is there. Do we have a breakdown of those kinds of numbers? Just out of curiosity.

00:29:30,970	A mayor and commissioner? So on this slide that I showed you in meetings and conventions, realistically, out of that, those other dollars, we could subtract that out of there. We track meetings and sporting events together. So realistically we could subtract that out of there. Thank you. Commissioner Connelly.

00:29:52,730	Mayor and commissioners, uh, just to clarify to Commissioner Risch, I believe we just redid the roof and I think it’s steel, so we should be set on that for the foreseeable future, right? Yes. That’s correct. That was done as actually part of the new lease with them. And the arrangement or donation back to the city out of effectively out of the lodging tax. Yep.

00:30:13,030	Any other questions for Sherri? Sherri, thank you for your time and presentation. Moving to item B. Uh, Jason, I’m going to let you leave this off. It’s discussing this building and, and, uh, the deferred maintenance associated with it and, and things we might need to look to do. Yes. Good evening, mayor and commissioners.

00:30:34,500	Uh, maybe a little bit of context here before we jump into the presentation from the architects, uh, the city county building. The city of Bismarck has owned this building since 1984. It was previously operated by Queen and Ramstad Clinic as a medical facility. In 1984, this building was significantly renovated.

00:30:59,470	Um, to accommodate first floor is 100% Burleigh County offices and then floors two, three and four. Our city offices. And of course, this room in the lower level, uh, is a shared space owned by the city, uh, but utilized by city schools, county parks, and a variety of other stakeholders, partners and, um, government organizations for these types of meetings.

00:31:19,300	Uh, why we are here today is because Burleigh County has made it known to us that they will be vacating this property at the end of 2027 or by the end of 2027, if not sooner, uh, relocating all of their offices across the street and up a block to the Provident Building, which is owned by Burleigh County.

00:31:35,970	Uh, because of that, we essentially will inherit 25% of our building that we’ve never utilized. Burleigh County has been part of this building since its inception in the mid 80s.

00:31:56,070	And so in order to properly explore how to reconsider this building, we engage the help of some local architects, Cole Johnson and Nate Hacker from Endeavor North Design. That was a process that was initiated in July of last year, uh, interview process and ultimately approved by the commission that met in November of 25. Uh, since that time, we’ve gone through a little bit of a design process and learned a lot about this building.

00:32:12,200	Uh, Nate and Cole have assembled a good team of architects and engineers, design professionals, a variety of engineering disciplines, and a team of landscape architects. Uh, one of the big drivers in thinking about this building is the room that we are occupying today.

00:32:31,070	For anybody that has not been in this building, uh, it should be noted that we are in the basement of this building, and we are in the basement of a building with the oldest elevator in North Dakota. The only way to get downstairs is an elevator. That was probably predates a lot of us in this room.

00:32:47,470	And so that elevator has presented some challenges in the past. I was part of a meeting a number of years ago where we had a good number of citizens that are experiencing accessibility and disability issues and getting them in and out of this room took an extremely generous amount of time.

00:33:04,330	If we were to have an emergency situation, I’d hate to think how that how that would have been handled. So thinking about getting this room in a more accessible location that is safe and secure and, uh, solidifies us in this building for a great number of years going into the future.

00:33:22,730	Those were some of the driving factors that we put in front of the design team and said, help us figure out how we can better utilize this building, how we can get out of the basement and provide a public meeting space that is safe, secure and accessible.

00:33:42,330	And in part of these conversations, we’ve also talked with leadership from Bismarck Public Schools and Bismarck Parks and Recreation District and received favorable responses that they would prefer to stay in this building and share a room with us in the future. It’s my understanding Burleigh County will be creating their own commission chambers within the Provident Building, and I believe it would be located on the second floor.

00:33:59,930	So with that in mind, this room would not be used by just the city of Bismarck. It would be used by schools and parks as well. Um, so with with some of those kind of parameters in place, we asked Nate and Cole and their team to explore a number of options.

00:34:18,230	What you will see tonight are five potential scenarios, five options to consider. We’re not asking you to make any decisions tonight, but once we do have the design concept shared, we will also give you some information on how we could potentially fund some of these options.

00:34:33,400	We’re not just coming to you with a a high minded concept of with some pretty cool pictures. We’re also going to come forward with some potential funding options that would allow the construction and renovation of this building to go forward. So, Jason. But that until we get to narrow down the design concepts, we don’t even know for sure. We have some big broad numbers. But Mayor Schmitz, you’re absolutely correct.

00:34:51,500	Nate and Cole will tell you that there are some contingencies built into these big numbers, and they are very much, um, estimates at this time. Um, but until this authority or this commission provides some direction, we’re really elaborating on a bunch of different concepts.

00:35:12,670	And so what we would like to do tonight is have them share where we are today and provide these options, but then allow you some time to think about it. Ask questions between here and likely the end of August or early September.

00:35:29,530	We would like to come back to you at that time and receive some direction on the right path for us to consider moving forward, and then that would keep us on schedule with the design and potentially construction beginning in 28, after Burleigh County has vacated the building. So with that, I would like to introduce Cole Johnson and Nate Hacker, and I believe Cole’s got a number of slides to walk through this. We appreciate your patience.

00:35:49,170	There’s a lot of information here, and that’s part of the reason we don’t want you to be compelled to make a decision tonight. However, um, I don’t doubt that these gentlemen will have answers to the questions that come forward. And if there’s questions that staff can help with, we’re happy to do that as well. So with that, this is Mr.

00:36:02,430	Cole Johnson and I will get out of his way. Want me to move this or. I think we’ll go. Go like this. Here. All right. Evening, commissioners, mayor and commissioners. I’m Cole Johnson with Endeavor North Design, one of the architects working on this project. Uh, we have a full team behind us. Uh, some of their logos here.

00:36:36,330	Um, one moment here, I’m going to adjust something. Some of our engineering partners and design partners are listed below. As Jason mentioned, we’ve been working on this for around six months and having meetings regularly. Uh, Jason did a great job of just kind of hitting on why we’re even looking at this, um, step back one, one step.

00:36:58,200	The 2026 strategic plan hits on. You can’t really read any of that, I’m sure. If so, I’ll just hit on the key things. Um, one one goal. One, um, 1.1 that that directly addresses this building. Modernize and upgrade the city county building to improve functionality, efficiency, safety, and accessibility.

00:37:22,200	Uh, so that was in the 2026 strategic plan and spurred the spurred this. So, uh, some of the other goals are listed there. Uh, have to do with, uh, engaging, um, staff, staff, retention staff, uh, quality of work environment. And also, there’s the quality of space and engagement with the overall community.

00:37:46,270	Uh, so why why are we looking at this project? Jason mentioned Burleigh County vacating roughly 25% of this building. Um, another main aspect of this, this project is aging mechanical, electrical and plumbing infrastructure. There’s some, uh, needs coming up. There’s some needs that are here now, and they’re only going to be getting worse.

00:38:08,130	Um, as as time goes on with, uh, mechanical systems and this building, uh, oldest elevator in North Dakota. This is a building that’s highly dependent on that elevator. So if that goes down, it’ll be very disruptive, uh, and harder and harder and harder to fix for that. Uh, that older elevator accessibility challenges, uh, both get into the building.

00:38:26,430	And when you’re within the building, and then this chamber, uh, location. So the location within the building is a concern. The space this is, uh, there’s lots of room for improvement in this space. Um, so if you were to build a contemporary, modern commission chamber, you would have higher ceilings, better visibility.

00:38:45,570	Um, there’d be a lot of improvement. Security is a big concern as well in this space. And throughout the whole building. Uh, so what we’ve done to date is we’ve we started with the facility assessment to really understand what is the current state of this building.

00:39:00,500	Uh, what are the needs? What’s working? Well, and what are the potential solutions? We we went through a series of interviews with the departmental directors, uh, to understand their, their individual, individual departments.

00:39:19,670	And again, what’s working? Well, what can be improved and very importantly, what is their department look like over the next five, ten plus years? How much are they growing? Uh, what kind of roles will they be adding and how do they work with other departments so we can understand, uh, the space needs and adjacencies as we’re looking at this study? Uh, after that, we developed those five options that we’ll look at closer today.

00:39:36,430	And, um, so some of the key things that we’re looking for is how to, uh, locate this chamber, this commission chamber, this meeting space better in this facility.

00:39:54,430	Uh, what’s the best way to use that first floor space that’s being vacated? Uh, and what are the ways that we can improve the way public engages with this facility and make it a more secure facility as well? Yeah. You can’t. That’s tough for you to read. This is all in the packet, though, and you can read through this, but this is a summary of all the options A, B, C, D, and e a is the more minimal approach.

00:40:12,530	Uh, what basically what do we have to do to this building to keep it going for the next 10 to 20 years? That really focuses on mechanical and electrical and plumbing upgrades, elevator upgrade, roof replacement. Uh, but for the most part, everything else stays as is. And we’ll go over that in a little bit more detail.

00:40:30,200	Options B, C, and D make, uh, iterative improvements to this facility and kind of build on each other. And then option E is actually looking at a new build on the adjacent site. Uh, kitty corner from, from this building.

00:40:49,400	So this is the time to, to look at that and not whether that’s a viable option or not. That’s for you all to decide. But this is the right time before a significant investments made in this building. Before we jump into the concepts, we have all the floors shown here. So this is a building that was built in at least three phases, if not more.

00:41:08,730	But the original building is shown right here. If you can see my pointer. It’s tough, but uh, that that was the phase one. Phase two was off to the side and then phase three was um, to the southeast. So there’s three major, uh, additions to this building, plus some vertical expansions.

00:41:29,200	And everything shown in red is some obstruction that we have to work around as we’re planning either column stairs, elevators, mechanical shafts or bearing walls. So it just makes reuse of this building challenging. And when we plan it out, not as efficient as a new build. Get into the options.

00:41:48,300	So we have a summary slide and then a floor by floor slide. After that, uh, you can see up on the top, uh, in your packets as well. We have a rough schedule. This assumes phase construction. And then we have a, uh, budgetary estimate range. So that includes construction cost, contingency and a soft cost estimate.

00:42:11,070	And that also assumes multi-phase construction. The the first plan, the first floor shows the current main level. That is, where some of the colors aren’t quite showing up. Right. But, uh, this would all remain unassigned. So this is the the space that the county is vacating.

00:42:32,570	Uh, and in this concept or in this plan, it’s it would remain, as is an unused, um, focusing again, mainly on mechanical, electrical, plumbing and kind of infrastructure upgrades as we go up every. This will help orient anyone that’s not familiar with this building on who is aware within the facility. But engineering, planning and inspections would all stay as is.

00:42:53,800	Again, not not really improving their space, but improving the infrastructure within the facility. So they all stay within their current departments. One thing I wanted to point out on this floor, I think it’s a good example, but the secure boundary is shown in orange. Um, kind of meanders throughout the building on different floors.

00:43:12,470	It’s it’s a much it’s a less than ideal situation. It bisects this floor. Engineering, planning, inspections, uh, kind of separated there. That’s something that we would want to improve with, with any modifications that we make. Third floor. Is it finance and assessing those again share would stay where they’re at.

00:43:34,400	Colors are really hard to see on the screens here. Um human resources legal and administration is on the fourth floor. And those would remain as is. So option A really focuses on the infrastructure and keeping the facility running for the next 10 to 20 years.

00:43:53,770	Uh, basement stays stays the same as well. So chambers stays in the basement. Option B is where we start to see, uh, spatial improvements. I think option A with those investments, there’s they’re going to improve the facility, but you’re not really going to notice any of those.

00:44:10,670	They’re kind of behind the scenes improvements. Option B is where we start to move some things around and improve flows and functions within the facility. Um, budget jumps up quite a bit there, and then the schedule bump jumps up some to as we go floor by floor.

00:44:30,930	Chambers moves up to the first floor in the southeast corridor or corner of that to orient people. If you can see my pointer on the south side here, this is not north is is actually to the left. But the main entry is in this location. This would move the chamber up to the first floor.

00:44:48,600	And this is the best, best space for it, primarily due to column spacing. So you’re going to get uh, less columns than this space or better spacing in the columns. But you’re still going to have columns within the commissions chamber. You’re still going to have a very low ceiling. You’re basically going to take this space and move it upstairs functionally.

00:45:04,570	So call just for my own knowledge, I guess with that design, roughly how many people would be able to be seated versus this particular chamber? This is a larger chamber. And I think right sizing that chamber, it’s something that we’d jump into regardless.

00:45:27,100	Mayor and commissioners, this is this is around 150, which may be more than you need. This would probably accommodate very large meetings. This is around, I think, your chair counting here is around 125. So whether it’s this size it might shrink a little bit. But thank you. It’s roughly the size. Yeah I’ve looked at these drawings a few times. Yeah. Trying to get my head around. Them.

00:45:46,800	Uh, so we would also move admin human resources and legal down to the first floor. Those are our three departments that have a high level of interaction with the public or other staff that are outside of this building. So those three make a lot of sense in this location.

00:46:04,400	And we also have a kind of central area here where these blue dots, these dots that are around there are the, uh, service windows for these different departments. So if you’re coming into this space, we have something that we’re calling the Heritage Hall, which would be, um, somewhat of a gallery space that would show different, uh, historical

00:46:24,700	documents, artifacts from Bismarck, possibly some local artists, artwork and, um, become just kind of a core to this building. If you walk into this building today, you’re greeted by a stair and an elevator and a directory. It’s just not the best, uh, first impression for this building. So that would be a huge improvement.

00:46:45,470	But this does keep the entry in the current, uh, current space. Our current location, Heritage Hall summary just kind of elaborates on that. There’s some interest in there’s a historic fire truck that the city owns and would like to find a spot to showcase that.

00:47:06,200	And some of these options provide a a potential location for that as well. Uh, jumping up through this BC and or levels two, three and four on option B, everyone stays the same in the same locations.

00:47:31,000	We reorient some of the the front of house kind of public areas here to not bisect the floor, but also create some shared staff, um, support spaces in the middle. So, uh, you can kind of take advantage of those shared and shared uses like printers, bathrooms, co locating those in a central location. Uh, level three finance assessing and it all stay the same there. Again kind of creating a back of house connection for those departments and some shared staff areas there.

00:47:53,800	And then fourth floor, we were uh, we are showing currently a shared break break room. So, um, instead of creating break rooms on every floor, this concept shows it all in one location.

00:48:12,470	Actually option B and C and D I’ll do this to different locations within the facility, but this would have a larger break room for staff to, uh, come together, get to see other staff throughout the facility, and then you can also see there’s a large area that’s unassigned right now with the county vacating, uh, that first floor space, there’s there’s some additional space needs from the city, but not a 1 to 1

00:48:32,530	replacement. So we do end up with some space for expanded opportunities, growth. Kind of unidentified potential users of that space in the in this current space, we would backfill the commission’s chamber with a training room for staff, possibly public as well, which is a need for the facility and then some other storage and staff amenities.

00:48:57,430	Small staff wellness center in the basement. This gives you an idea of the space, so it’s not a fully designed commissions chamber, but it at least gives you an understanding spatially how that would feel on that.

00:49:19,200	That first floor columns are there, um, ceilings low? I think it doesn’t it doesn’t provide the opportunity to do a raised as a raised commission desk. Um, it’s going to be very similar ceiling height to this. Um, but it’s at least gives you an understanding and idea of, of what could fit in that space. Option C there’s a you can see schedule stays fairly fairly similar budget.

00:49:43,270	There’s an increase which I’ll go over B and C are very similar except for on C. We start to incorporate this south lot. So to the south of this building there’s a parking lot. And that owner has shown some interest in a land swap between this parking lot and the parking lot to the northwest of this that the city owns.

00:50:05,670	So that opens up a number of opportunities. So on this concept, we’re showing the public entry actually shifting to the south side of this, the creation of a public plaza as well. Uh, so the main entry goes to the south here.

00:50:27,000	Generally the floor plan is very similar, but we also look at improving the quality of space for the commission’s chamber meeting space. And that’s that involves actually removing a row of columns and removing the floor above the commission space on the on the first floor. Good. Commissioner Rich. Mister mayor, commissioners. Cole.

00:50:51,000	So if we swap that parking lot where I’m parked at right now for this parking lot, would there be any parking available over here with this public space thing? There would be some minimal parking on the south side where the street parking is.

00:51:11,330	Commissioner Risch and we haven’t fully designed it, but it wouldn’t be the intent right now that we’ve discussed is to create a public plaza for downtown and not a replacement for parking. So discussions to date have been along those lines. Uh, second floor. This shows the open to below. So the big change on this plan for the floor is two through four. Is that planning and zoning and building inspections would go up to the fourth floor.

00:51:31,170	And that shared break room would go down to second. Third floor remains basically the same between B and C. And then C has planning inspections on on the fourth floor and then the basement plan between B and C is very similar. And and we’re losing part of floor two because of raising the ceiling on first floor where the chamber would be.

00:51:56,700	Exactly. Yeah. There’s quite a bit of structural work that goes into that. Uh, we it’s a very expensive decision, but we, we thought we’d look at it and give it an honest look just to see.

00:52:13,930	Could you get a commission chamber meeting space that would be closer to aligned with what would you do with a a new build? So, uh, it’s doable. It’s it’s not easy and it’s not inexpensive either, but it’s a viable solution. Uh, a look at what that South Plaza could look like. The south entry would upgrade that, do some updates to that south facade as well.

00:52:36,400	Uh, I think a big improvement for the site, uh, stronger civic identity. The flows within the space were better. Um, there’s still some security issues. There’s still some security concerns that secure boundaries are not as clean as we’d like it. There’s some. It’s not quite as intuitive. Finding your way through the building for the public. But there’s there’s improvements there.

00:52:59,200	And a look at that raised ceiling space. The less less columns, it gets much closer to what you do in a new build. Option D is. Commissioner Hull mayor and Commissioners. Cole, can you tell me, can you give me the the height of the, you know, the room, the meeting rooms for what? B, c and d, I guess. Yeah.

00:53:22,600	So for and I’d say for the ones where it’s like, I don’t know if it’s in your, you know, in your picture you showed, you know, for lack of a better term wouldn’t be coming down. You know, if that’s if that’s part of the design or just aesthetic, I don’t know. I’m not engineer on that.

00:53:37,270	But you know what the what the effective ceiling would be, you know, say, I’ll, I’ll frame it as if a tall person is walking through. Yeah. Um, mayor and commissioner, is it. It b it would be roughly this probably around eight feet. Maybe we could do a little bit better, but not significantly.

00:53:55,270	Uh, see this option where we remove the structure above? It’ll be around 14 to 15, which is what we would want to do in a new, new facility. Anyways. And that does involve some very extensive structural work. They’d be adding some very large beams in that scenario. Thank you.

00:54:12,300	And then D once getting into that it would be around that same ceiling height, 1415 for acoustics, and visibility or visuals. Uh option D actually ends up being slightly less expensive than B. And we were a little surprised by that.

00:54:34,270	But it seen how much work it took to get C to pull off C, it makes sense. Uh, and this actually adds a commissions chamber, a new entry lobby, instead of replacing the elevator in place behind us here or behind me. Uh, it actually builds it off to the south side, a new stair. So everything public completely shifts to that south side.

00:54:53,470	Your entry is there. You have a lobby outside which could be overflow space for meetings with high attendance. I think that would really allow us to maybe right size that commissions chamber out to possibly a smaller size. Having that overflow adjacent. And then it has restrooms, conference space next to that, that Heritage hall.

00:55:13,430	This is where that that fire truck, if this was to be showcased somewhere, it would be a great option within that that lobby space. Um, and then the the public plaza is just a it’s it’s still a very usable functional space. Even with that commission chamber expansion.

00:55:36,430	Another thing we heard in departmental interviews is a desire for a loading dock that would allow larger orders and larger shipments to come to this building, better pricing, and then also have a spot where a small truck back up and deliver larger quantities of, um, supplies. This actually the as you go up, this cleans up that public interface.

00:55:59,170	It’s everyone that’s coming to that building goes up the elevator stairs, comes to this lobby, which would be visible from that plaza. Uh, the service windows are on the south side. The small conference and consult rooms.

00:56:14,600	Any place that a public person, a member of the public coming to this facility, would have to use. It’s all in that south side and staff would come to them. That cleans up the secure boundary significantly as well. And then going up same thing. It finance and assessing uh and then fourth floor unassigned.

00:56:38,600	Look at uh basement again similar functions to B and C just a little different layout with that added elevator and stair on the south side. Look at what that plaza and building could look like. It has a very strong presence. It’s a um, you can really see the civic identity is is much improved here. I think wayfinding for public and is improved as well.

00:57:01,670	Everything that they’re going to need is on that south side. Um, I think the layout also on the first floor actually allows for the whole building to be locked down, except for the commissioners chamber and the restroom, so that that could provide some interesting opportunities to allow that commissions chamber to be used by by others other than just the political subs.

00:57:21,900	You could lock down the whole building except for that space. Um, you know how far you take that? It could be a point of discussion, but it could be a real community asset at that point. Another look, as you see, you can see all those public lobbies right here on that next to the stair tower.

00:57:43,370	And then the commissions chamber here too. So we’re showing this slightly elevated to I think this is where we would land in a scenario where we can elevate the, uh, the desk, the dais. Um, so that when people are presenting, you’re kind of eye level.

00:58:00,530	And then the community can see has better visibility in the space as well. Option E so this is the new build. Um, looking at the site that’s adjacent to this facility. So this is Fifth and Thayer. So it’s one the opposite corner of this building or from this building, Provident building is to the north.

00:58:22,130	Uh, I’m not going to go into a whole lot of detail. I think functionally it has a lot of the same same uses on the same floors, other than we have underground parking in this scenario, uh, around 38 spaces is all you’re going to fit on, on one floor there.

00:58:39,270	So it’s not a direct 1 to 1 replacement of that current parking lot, but there are some parking spaces available there. We talked about going down another level, but that would just the cost would skyrocket at that point. It would it would be very expensive for not many, not many spaces.

00:59:00,600	And then going up to second floor, IT and human resources finance and assessing on the third, fourth floor, planning, inspections and engineering on the the fifth floor. Um, quick look at what that that could look like on that site. Um, again, I think this is the time to look at things like this. As before, this building needs needs some significant investment. Um, is this a there’s this option.

00:59:19,730	Make sense? Oh, for you to discuss and decide. But we thought it was worthwhile throwing it out there and having that, uh, at least that data point of what a new build would, would look like.

00:59:36,470	And I think, um, the size of that, this new build is smaller than this existing building, um, going into a new a new building, we get to lay it out more efficiently. Um, basically aligning with two true needs of the staff, this existing building with all the columns, the existing window bays. It’s really driving a lot of, uh, how we can lay this building out. Uh, schedule.

00:59:55,230	I, as I mentioned before, we’re estimating and planning a phased approach. Uh, whether or not that’s a full two, three, four phases or if we can do it in 1 or 2 is, uh, something that we’ve discussed. But for our pricing, we’ve assumed that it’s a multi-phase project.

01:00:14,270	And that does come with a premium as well. So I’ll spend a little bit of time on, on this, um, the estimates. So we have option A through E there a high and a low range.

01:00:33,700	Um, and just candidly, if we were to look at these when we started this in these numbers, we they’re much higher than we thought they’d be when we started this effort. Um, but as we dug into the state of the mechanical systems here and the effort that would take to replace all those, the electrical components and really understood the needs of this building, um, the the numbers are justified and there

01:00:51,970	are best estimates at this time. So the blue columns are all or rows are all the direct construction costs. And we have a the building number and a plaza in site number broken out there. And then the high and low ranges. Uh, after the blue we have a contingency and escalation line.

01:01:14,170	So that is a high number right now it’s it’s 20%. And that’s made up of a design and construction contingency of 15%. And then an escalation factor of 5%. Um, I would say that if you’re going in on any project, I think it’s a the correct thing to do is go in with a healthy contingency like that.

01:01:37,600	But the city is balancing many, many projects too. So the likelihood of every one of your projects needing all that contingency is unlikely. Um, but still, when we’re looking at this one project, this is where, uh, we and we, we reviewed with some construction partners locally to what, what would you recommend. And they are in alignment with that as well.

01:01:59,500	Uh, the that gets you the total construction cost estimate ranging anywhere from 9 to 10 on the low end to into the 40s on option E, 40 million. The next column in there is, uh, yellow. So that’s the yellow soft cost estimate.

01:02:28,270	So soft costs are um, costs such as furniture, equipment, computers, equipment, um, hazardous material, immediate remediation, design fees. And that right now is just a percentage. We haven’t nailed down all those prices. We’ve we or all those costs.

01:02:48,530	But assigned a percentage to each option going with a lower percentage on option A, up to a higher percentage on option E thinking there may be more furniture, more equipment that you would you would buy for a new building. Uh, so that gets us to that, that full range of, uh, 11 to 12.8 on the low end with A, B, C, and D all get into the 25 to 40 range. Um, and then new build is 46 to 50.

01:03:12,600	Um, but just candidly, there’s a chance we’re conservative in this. There’s a chance that we’re over contingency. But this is where at this point in the project we’d recommend. But it can be an absolutely a discussion point.

01:03:28,200	When we look at kind of a gut check for us was to look at the cost per square foot for, for these options. And a which is kind of the the essentials. It’s around $150 a square foot, which is is high for basically infrastructure work. But this is a very complicated system and it’s complicated replacement.

01:03:49,470	Uh, when you look at B, I think that was around $350 a square foot high for a renovation, but not unreasonable for for this intensive a C was more I think that was into the possibly for 25 for 50. But what was driving that was the construction or the structural cost to do that. Um, taller chamber.

01:04:12,500	And then D actually was on about three I think, 375, which was lower than C, there’s actually more square footage there too, but so those cost per square foot for construction, um, don’t seem off to us too.

01:04:31,770	So we’ve got a few things to, to kind of gauge that by uh, and then as I mentioned, we and engaged a couple, um, local building construction partners to get their thoughts on it too, and they were in alignment with us. Last thing, I will hit on and then leave it open for any questions you might have. We created a guiding principles matrix. So, uh, options are the rows here A, B, c through E.

01:04:53,700	And then we created these guiding principles and then scored them five being excellent alignment excellent alignment one being not well aligned. And then we weighted those two. So putting a lot of weight on construction cost and value. Um you can see the weighted scores here ranging from two and a half up to four.

01:05:14,330	Uh and then we also had the steering committee or the steering committee uh, scored these options based off the, the city’s, uh, core values of service, stewardship, respect, care and innovation. And again, we weighted those. They assign those points and then we average those out. So you can see how those scored. We have that in this column here.

01:05:36,300	Um and then we also have the the estimate ranges. So those are total project estimates with construction or with contingency in those. And soft costs. And then the scores um I feel like I’ve taken enough time, but there’s plenty more I could discuss. I would I would what questions do the do you all have.? Commissioner Commissioner Hull has.

01:06:00,230	Thanks, mayor. Commissioners, um, I, I forgive it’s in here. You know, talk earlier with, uh, Nate of, um, there was there would be cost savings, I can’t remember. It’s 5 or 10% if you did it. One phase.

01:06:17,630	Um, I wasn’t sure if you, you know, because I guess if I recall correctly, you’re you’re still refining the numbers. Would you build a refine so we could see each of those options of, you know, because there’s the savings of being able to just be like, we’re out, you know, you’ve got the building to, you know, play, you know, do do all at once. Yeah.

01:06:31,870	Versus the cost, you know, but also include the cost of having to vacate, you know, everyone everyone’s out. You know a move day versus you know.

01:06:43,530	But also I guess if you do it in phases of, you know, there’s also the cost of each floor having to move, I guess if we, you know, I know it’s compared to the overall number, it’s not much, but I figure it might hit I don’t know if that moves it by, you know, the six figure range would be it’d be nice to know I don’t know if that’s possible. Yeah, absolutely. We could refine that.

01:06:57,330	Uh, show the 5 to 10% reduction. Uh, and then those, those moving costs are actually in that soft cost number, too. So we could bring those kind of to light and just show those to what we have assumed for moving costs and how those might change for one phase, two phases versus for. All right. Thank you. Other questions. Go ahead.

01:07:18,630	Okay. Yeah. All right. Um, I was wondering if there are there other like, you know, I know just, you know, upgrading lighting and, you know, HVAC is an energy savings right there. But I figured this is a great opportunity to upgrade the building.

01:07:33,670	Are there other energy energy efficiencies that we could you know, that you’ve included or that we could include that, you know, could pay themselves off and say, ten, 15, 20 years because we’re going to be here for ten, 15, 20 plus years. Yeah, I think the next thing after systems would probably be the exterior insulation.

01:07:50,270	I we we’re assuming that there’s not much, if any, exterior insulation in this building. So, uh, looking at that to that would be something that it’s incorporated in the numbers. But, um, we could break that out our assumptions to on that, um, windows is one that we’ve.

01:08:09,430	We don’t have that in our number right now, but it’s something that we could look at. They’re functioning. They’re in good shape. They don’t necessarily need to be. Um, I’m not sure what the payoff would be, but those are two that come to mind. Um. Yeah. Because I just figure if we’re going to vacate the building, let’s do it.

01:08:23,400	You know, let’s get everything we can done now for, you know, I don’t know, 50 years. Yeah. Thank you. Commissioner Risch. Mr. Mayor, commissioners Cole. So the last major renovation was actually 1984, I think. Or was it been renovated since then? Mayor and commissioners. Commissioner Risch.

01:08:55,330	The building was renovated in three separate phases, 2006, 2007, 2008, floor two, floor three and four floor were done independently. At that time, uh staff was relocated to the then owned City Public Health building on the corner of fifth and front, but it was basically one floor per year, and then that spanned three separate budget cycles to help manage the costs of the renovations

01:09:14,000	over a period of time, rather than a lump sum. So 20 years since 2006. It’ll be quite disruptive. Yes, it will be. Um, one of the other questions I have is whenever we do something like this, are we going to buy all new furniture, all new furnishings, the entire operation? I mean, that’s what

01:09:38,600	seems to be the the trend I moved last year from South Bismarck to North Bismarck. We kept most of our furniture. We moved it. But is it going to get me all new furniture? Everything? Uh, their desks, everything. I believe in.

01:09:58,330	We have new budgeted, uh, our our soft costs includes that for the new build. And then the rest of them. I think it’s a hybrid of assuming that we’d reuse some. If you like your chair right now, we can bring it back upstairs. But, uh, it’s it’s hybrid, I think in the, the the remodel options. A we don’t have really anything.

01:10:16,170	It’s, it’s assuming that it’s just, a reuse of everything that’s there. So go ahead. Commissioner Hull mayor and commissioners, I guess, I guess, uh, you know, try to figure out how to phrase it best. But, you know, I know it’s good to, you know, look good.

01:10:35,130	Let the audience, you know, be able to see the commission. But I also know it’s like, I don’t know, you know, we’re we’re just, you know, regular old people. We shouldn’t be up on a high dais. It’s like.

01:10:47,930	Or what? Like how you mentioned one of them, you know, would be loved to, you know, improve visibility with like, the person that come up to lectern, they also be able to wear like, you know, similar level or I don’t know, I’m just, you know, I didn’t like the metaphorical optics. So yeah, I wasn’t sure, you know, help me figure that out. Yeah. We would study that definitely in all options.

01:11:02,930	But, uh, this isn’t ideal. This is kind of a little awkward. Um, with a at the same, same level. Uh, it’s also not a great visibility for for the people in the audience. So looking at 1 to 2 steps up is probably the right, uh, level.

01:11:22,700	So then we become more eye to eye as we’re, as we’re discussing, um, better visibility from the audience. When you start going to 2 or 3 or 3 or 4 steps, it becomes a little bit more intimidating. Or like a judicial bench type of thing, which is not the feeling that we’re going for either.

01:11:42,970	So, um, I think some level of elevation around 12in a couple steps is probably the right amount to hit that balance between better visibility and not being intimidating. Yeah. Thank you. So, Jason, are we at you asking for any kind of direction tonight? Because I’m swallowing hard on some numbers. Yep. Totally understand. Mayor and commissioners.

01:12:08,600	Um, I guess any direction you’re willing to consider, we would certainly take. But we weren’t expecting anything beyond. Continue to proceed. There’s more work that Nate and Cole can continue to do before we get to the kind of next decision point.

01:12:25,970	We just wanted to give you information to consider for now, with the intention of coming back. Like I said earlier, either the last part of August or the first part of September, and then we at that point we would be looking for some direction, whether it be option A, B, C or a hybrid of one option or another.

01:12:43,900	Um, but we wanted we wanted you to all have this consideration at this point. And anything any feedback you can offer, the design team or the steering committee, uh, myself, Assistant City Administrator Doug Wiles and our city engineer Gabe Schell have been a big part of this, along with our facilities. Sorry. Public Works Service Operations Director Steve Szalay, who oversees the building maintenance.

01:13:02,000	So there’s been some staff involvement in this. And along with a good member, a good number of members of the design team, as well. Commissioner Risch. Uh, Mr. Chairman, um, commissioners. Jason, I mean, the million dollar question is, do we have the money to pay for it? I mean, I think it’s wonderful.

01:13:20,830	I like option D, it looks like it scored the boats, but we got a lot of stuff in the pipeline. We’re building a new police station. A hundred million. Um, expanding the airport. It’ll be about $20 million from the city’s share, um. Fire station control.

01:13:39,930	Flood control, $100 million on the south side Tyler Parkway, where we’re going to have a new fish pond that’s $10 million. Um, before you know it, we’re talking real money here. So I’m just wondering, where do we, um. We have a plan.

01:14:00,700	I mean, like last year’s budget and this year’s budget, we’re limited to 3% increase, plus new construction, and we’re spending it all last year. And this year. The good news, I think we didn’t spend all of our budget from last year. So we built up a little bit more reserve. But so my big question going forward, I’m all in. If we can find a way that it’s we can pay for feasible.

01:14:15,630	Sure. Mayor and commissioners, thank you for that question. Do we have the cash on hand today? No, not 100%. But we’re also not looking at starting construction next year. We’re we’re looking at 2028.

01:14:34,400	So through a series of exercises that we’ve done with our new finance director and our comptroller, we’ve come up with potential funding scenarios that could work without borrowing a whole lot of cash and without depleting our entire resources. We have building construction funds that could be eligible.

01:14:55,800	We have, um, committed fund balance, and we could also be looking at potentially revising our fund balance policy to limit the amount of cash we have in reserves and then redirecting some of that towards this construction project. But you’re absolutely right. We have been talking a lot about new construction and big projects. Unfortunately, um, this the estimates that have come forward with these five options far surpassed what I thought it would take to renovate this building.

01:15:15,770	When we heard that it could be between 10 and 12, $14 million just to fix the roof, the elevator, and the HVAC system in this building, that’s pretty staggering.

01:15:34,400	But when you then look at the next options going forward, you quickly realize that a lot of that cost that goes along with option A eats up the budgets for options B, C, D as well. So we have to fix the HVAC system. Just for example, this weekend I happen to be in the building Sunday evening and it was a toasty 90.2 degrees on the fourth floor. Our cooling tower went out Friday.

01:15:52,430	Our building maintenance staff worked throughout the weekend on and off to get that thing back online. So when we came in Monday morning, it was a comfortable work environment. We have three different HVAC systems in this building and it is a struggle to maintain.

01:16:09,930	I think Mister Saul would tell you that his building maintenance staff spends a fair bit of their time just attending to this building, not to mention all the other facilities that we have throughout our entire holdings. And we see them frequently, we see them regularly, and we are. We’re calling because things aren’t working. Things are leaking. There’s there’s problems with this old building.

01:16:28,600	And if we continue to ignore them, unfortunately those costs and those problems just get bigger. So it’s probably time to make some decisions again. What’s really causing a lot of this conversation is the fact that our first floor tenant will be vacating the property, and thereby we have a responsibility to reuse that

01:16:44,600	space in one way or another. It would be great if we could just simply move in and set up shop, but that doesn’t address some of the other issues that we’ve talked about already in particularly this room is being one of the one of my primary concerns with remaining in this facility.

01:16:59,530	We need to provide a safe and accessible place for all the public to attend our meetings from now and into the future. So. Well, I’m not afraid to give a little direction. Certainly I feel there are two options that are probably not viable. A because that’s really it’s solving issues, but it’s not addressing more concerns in E. New construction. New construction. Understood.

01:17:27,900	And I would love to see us find a way to keep the number under 30. Okay. Duly noted. I think that’s more attainable. Yep. And mayor and commissioners, if I can offer as part of the steering committee, I don’t know that any of us would be in favor of new construction either.

01:17:45,200	But I think it was worth having that exercise to put the number in front of you to, to just compare. What does new construction look like versus the various renovation options that are out there? So we certainly didn’t expect anybody to be high fiving us on a $50 million new city hall, but we

01:18:01,070	wanted it to be a part of the presentation. So you had it for context. That’s my broad. I mean, I probably narrowed it down. So you have my finance number? Sure. Go ahead. Mr. Mayor. You make an excellent point.

01:18:20,670	Oftentimes every time all these building and construction projects we bring in, these consultants, the engineers, the architects, and they give us a number instead of us giving them a number and say, what can you do for $30 million? Maybe that’s the approach we should take or whatever number that might be. And I and I just pick 30 because I think it’s unattainable. I would love to be 25, but. I’d like to do ten.

01:18:37,230	Well, I don’t think we’re going to do ten because we ought to take care of the we got to take care of the elevator and the and the mechanical pieces, which, you know, it’s we’ve been making it by. But if we’re going to do something, we should fix. It.

01:18:51,630	And I’ll if there’s nothing else, I think I look forward to what you bring forward. And also, our finance team bring forward the potential plan of how we pay for it. Understood. Do you have a preference if we shoot for the second meeting in August or the first meeting in September.

01:19:09,770	I would say, because the first meeting in September is our budget hearing. Um, um, it’d be better if we went to the second meeting in August. If we can pull that off, because I think it’s better to not. Okay.

01:19:24,130	Um, but I mean, I don’t know what the budget hearing looks like or how long it will be, but I want to make sure we give due time to that, because that’s very important. Understood. And a quick check with Mr. Johnson here.

01:19:39,200	The second meeting in August wouldn’t be a problem for them, so we’ll plan on that and we’ll come back with a potential funding package and whatever new information the design team can share. Between this meeting and a meeting a month from now. Okay. Thank you. And thank you for the work and getting some concepts for us to think about. Absolutely. Thank you. Okay. Thank you. I just. I’m sorry. Mr..

01:19:57,300	Would it work? Would it help if we eliminate two options. If that’s the general consensus of the of the board, mayor and commissioners. Commissioner hole, we can certainly focus on options B, C and D and just eliminate new construction altogether and recognize that it’s not the best use of our

01:20:16,470	resources to just shutter a portion of the first floor. So we’d be happy to focus on the three in the middle and go from there. If that’s. I might add, that we might eliminate option C as well.

01:20:29,930	I mean, it’s more expensive than D and I don’t like it as well neither. All the people weighing in on it. Probably not. I mean, I just think the cost of the infrastructure. Is if. We kind of wasted money in my opinion. Yeah, I would, I would move, we make, you know, give them either remove it, move down to 2 or 3 options.

01:20:45,400	But if we do I would say, you know, I just want, you know, let the commission know I do have stock in one of the companies listed. And then, you know, another company is a client of mine.

01:21:00,330	So I, you know, I’ll step out of, you know, if you all feel it’s a conflict of interest, I don’t I don’t have any involvement with the project, but I just wanted to put that forward, you know, for, you know, transparency. Okay. I don’t know if we need a motion today. And right now, I don’t think it’s a conflict.

01:21:17,900	I don’t personally, but I think if we’re given direction, I think we certainly I’m going to guess option C is going to fall off because of the dollars. So it’s probably down to. B and some form of B and. D. Okay. I can not seeing heads shaking. No necessarily. We’re just all we’re all trying to get our head around the dollars. It’s a big number.

01:21:38,070	We understand that’s not what we were here to, not what we were hoping for. But it’s unfortunately what what we’re dealing with in today’s environment. And if we wait any longer, the number just gets higher. So we can certainly focus in on options B and D and come back in a month and we’ll take direction at that time, okay? Okay.

01:21:54,770	Thank you, thank you, thank you. All right. Moving on to item C. Excuse me. Public hearing on ordinance 6673 to create a special assessment district for annex properties. And I think I don’t have a presentation for do I o our finance director is going to make an appearance. Mr. chair, you’re correct.

01:22:18,970	There is no presentation. It’s just a public hearing for the the park improvement charges to be assessed to annex property. Newly annexed property. So okay, I will then open up the public hearing. Anyone who wish to speak, please come forward. Identify yourself. A second call for public comment.

01:22:40,200	A third and final call for public comment. Seeing no one and hearing no one public comment period is closed. Commissioners, what are your wishes? Move to approve as presented. Second. Is there any discussion? Hearing none. We’ll call roll. Commissioner Connelly. Yes. Commissioner. Hull. Yes. Commissioner. Risch. Yes. Commissioner. Dull. Yes. Mayor. Schmitz.

01:23:04,170	Yes. Moving to item D, public hearing on ordinance 6676, zoning map amendment from agricultural and c g commercial zoning district to CG commercial zoning district and a major subdivision final plat title acres, additions and a development agreement. Go ahead. Jenny. Thank you. I’m making sure the computer is all right. Working perfectly. Thank you, Mr.

01:23:27,670	Mayor. Commissioners Stephanie Sheets and Dennis Berg are requesting approval of a zoning map amendment from the agricultural zoning district and CG commercial zoning district to the CG commercial zoning district. Major subdivision final plat. Daniel, he left you with all. The tools. Well, this is awesome. I just can’t get it to work.

01:23:59,300	So here we go. Um, so we’re doing a zoning map amendment, a major subdivision final plat titled Berg Acres Edition and Associated Development Agreement. These requests are located east in East Bismarck, between 52nd Street Southeast and 66th Street southeast, along the south side of East Main Avenue, and the plaque consists of 6.

01:24:18,930	99 acres with two lots in one block. The proposed Plat and Zoning Map amendment are being requested to facilitate an event facility on lot two. We’ll get there. Here. Um, there is an existing single family dwelling on lot one, which will remain but may be converted to a bridal suite in the future.

01:24:37,800	The property is located, as I mentioned, within city limits. Municipal water will be extended to the property from East Main Avenue. However, sanitary sewer is not yet available in this location. City staff have determined that a private onsite septic system is acceptable for the event center and existing dwelling until municipal sewer is available.

01:24:54,730	During the initial review of the proposed plat, staff determined that a roadway along the western edge of the property extending to the south, would be required to provide a corridor for the extension of municipal services and the roadway network to the properties to the south for future urban growth.

01:25:12,370	The proposed plat includes a 45 foot wide right of way, roughly half of the required 80ft of right of way, generally for this, for the type of roadway that is anticipated in this location, it is accepted that the adjacent property owner to the west would dedicate the remainder of the right of way when they choose to develop their property, the city and applicant have finalized development agreement that

01:25:30,170	addresses timing of future improvements of this roadway. 62nd Street Southeast will be its name along the western property of the plat, and interim use of the existing of a private septic system until public sanitary sewer is available. Approval of the development agreement is also included within this request.

01:25:49,470	It is my understanding that the applicant has signed the agreement and if approved tonight, Mayor Schmitz and City Administrator Tomanek will be also available or able to sign it as well. The Planning and Zoning Commission held a public hearing on this request on June 24th, and voted to recommend approval of the ordinance 6676 the Zoning Map Amendment, the major subdivision final plat for Berg Acres Edition and

01:26:10,130	Associated Development Agreement. Do you have questions? Any questions of Jenny? Thank you. We’ll open the public hearing. Anyone who wish to speak on this, please come forward. If the applicant or any representative wishes to speak. A second call for public comment. A third and final Paul call for public comment. Public comment period is closed.

01:26:36,130	Commissioners, what are your wishes? Move to approve as presented. Second. Is there any discussion? Hearing none. We’ll call roll. Commissioner Hull. Yes, Commissioner. Risch. Yes, Commissioner. Dull. Yes. Commissioner. Connelly. Yes. Mayor Schmitz. Yes.

01:27:04,930	Moving to item E, public hearing on ordinance 6677, zoning map amendment from a and residential zoning districts to residential zoning districts and a major subdivision final plat title DCN addition. Jenny. Thank you, Mayor and commissioners. Um, as you noted, DCN is requesting approval of a zoning map amendment from the Agricultural and residential zoning districts to the RT residential zoning district and major subdivision final plat for DC and addition.

01:27:25,870	This request is located in North Bismarck, North central Bismarck, really north of East Calgary Avenue between North Washington Street and State Street. That’s left over from an old one. Um, um, it is between Normandy and Coleman on the south side of 43rd Street. Um, the Planning and Zoning Commission held a public hearing on this request on June 24th.

01:27:49,270	Staff received one phone call asking about a roundabout in this location and one in person inquiry asking just more about the project. Neither for or against. Um. At the conclusion of the public hearing and based on the findings contained within the staff report, the Planning and Zoning Commission voted to recommend approval of this request.

01:28:06,300	Do you have questions? Any questions? Does it look. Like it? Thank you. I’ll open up the public hearing. Anyone who wish to speak, please come forward. Identify yourself. A second call for public comment. A third and final call for public comment. Public comment period is closed. Commissioners, what are your wishes? Move. We approve as presented. Second. Any discussion? Hearing none.

01:28:33,770	Roll call. Roll. Commissioner. Risch. Yes. Commissioner. Dull. Yes. Commissioner. Connolly. Yes, Commissioner. Home. Yes. Mayor Schmitz. Yes. Moving to item F, consider requests from the administration department to provide an update on the strategic plan tracking. Go ahead. Good evening, Mayor and commissioners.

01:28:57,600	Uh, tonight I’m here to present the second quarter update for Commissioner Doll and Commissioner Hull. Uh, our strategic plan was adopted or approved in November of 2025. And as part of that discussion, when that was approved, it was a request from this commission to do quarterly updates.

01:29:16,430	Um, for the second quarter update, we had I had attached in your packet three different reports. The first one is the detail task report that lists a whole bunch of information. That’s every single task that we are currently working on. So there’s 177 tasks, uh, for the strategic plan. Currently we are at 24% completion or progress. Sorry, not completion, but progress.

01:29:36,230	And if you look on that second page of that detailed task report, uh, you can see some different statuses in process, some disruption, major disruption. So a lot of our tasks that are that our organization is going to take on our upcoming. And so we haven’t even started those yet.

01:29:54,730	One has been discontinued and we’ve completed a fair bit as of right now as well. Um, I’m not I don’t plan on going through this entire thing. I want to keep this very brief because we have a very important item right after this.

01:30:09,730	But moving to one report that I felt was interesting and that you may have some questions about, is this disrupted task report? Uh, you see some bright colors on here. Uh, we have nine tasks that are in this this disrupted status. And disruption isn’t a negative term with how we’re reporting. And, um, I hope our, our directors are getting more and more comfortable with this language.

01:30:30,070	Red often means danger or that there’s problems, but that’s not necessarily the case here. It’s just identifying that there has been kind of a change in course or some circumstances that have come up that have kind of altered the path that we had originally thought we were going to take to accomplish some of these goals and tasks.

01:30:42,270	And I just want to point out a couple as an example. Um, if you look at task one point, 1.2.1, the the goal was to strategically identify land that will provide efficient community fire protection and procure the site.

01:31:00,930	So we’re we’re well along in that process, but we’re kind of wavering back and forth between two, two locations. And there were some variables that came up on one of the sites that have just taken a little bit more time. So we identify that there’s some disruption in accomplishing that task. Another example would be if you look at task 5.1.2.

01:31:23,330	1, uh, this task was to train staff in the usage of software dedicated to help remedy Ada non-compliant content on our website. Um, most of you are probably very familiar that there is a new federal regulation that came down to municipalities for how we manage our websites to make sure that they are Ada

01:31:38,330	compliant, and with that, it was it’s been very challenging because there was a as you can imagine, we have hundreds of thousands of documents on our website that our residents reference, and all of those need to be Ada compliant.

01:31:53,870	So there is some add ons to our website that we needed to purchase in order to to become compliant with this new requirement. So, uh, and then we became we got right to the edge of the finish line in April when the deadline was in, the federal government came out and extended a year for everybody. So we’re we’re way ahead.

01:32:08,770	We’re about 95% compliant on all of our data on our website. So we’re sitting in a good spot. But that the federal regulation has caused some disruption in that process.

01:32:24,330	Um, another update that our public health director provided just this week that wasn’t included in this, because the reporting time period was a couple of weeks ago, is she got an update, uh, for the Rural Health Transport Transformation grant. And she stated that we were previously anticipating getting some sort of approval between June 1st and June 30th.

01:32:44,070	And that timeline has been extended, and we haven’t heard when that will take place. But she wanted you to know that they are continuing to work with stakeholders. And if the grant is awarded, the next step would be to issue a request for proposal for technical assistance to develop financial Sustainability.

01:33:01,770	Sustainability plan for the triage center and if it is not awarded, uh, public Health would reconvene with the steering committee to discuss alternative sources of support for developing the Financial Sustainability Plan and determine the most appropriate path forward. So that’s a pretty big project for us. I know a couple of commissioners are very interested in that.

01:33:17,600	All of you are, but Commissioner Hall, is that your new portfolio that’s of extra interest for you? And then finally we have the Department progress report. And this is just a highlight. Some of the tasks that we have completed already this year.

01:33:36,500	Um, in the first couple quarters of the strategic plan, uh, the biggest one that we have accomplished is the half cent sales tax extension that took a ton of work, uh, by a lot of staff, but primarily from the engineering department. And our, our city engineer, Gabe Schell.

01:33:53,930	Uh, and there’s a very detailed checklist of what they had to accomplish in gearing up for this election season and getting information out to the voters. And we had great success at the ballot. I believe that was approved at about 65% approval. So I don’t need to go through all of these with you.

01:34:10,530	But if you have any questions or would like these reports presented in a different way, or would like maybe different details in these reports, I’d be happy to alter that. I have a lot of flexibility in the reporting. Do you have any questions? Commissioner Doll? Thank you, Mayor and Commissioners. Doug, I just want to say I think this is a really. Interesting piece of information for community members to see.

01:34:29,130	I think a lot of times, um, different pieces of city government aren’t recognized for all the work that they’re doing that is, admittedly behind the scenes to keep the city working. And I think this is a really interesting report to just see all the things that are going on to maintain our city and improve our city.

01:34:43,700	So good work to you and all of the department heads and employees of the city. Thank you, Commissioner. Any other comments? Mr.. Mr.. Mayor, commissioners. Doug, good job on this and thanks for following up. Oftentimes you do these things that get set on a shelf and nobody bothers to look at it. After we approve these strategic plans.

01:35:02,500	But I’m going to bring up one of the disruptive disruptive task report in it’s 5.1.1.1 major disruption. And it’s enhanced communications. The highest priority is that we form a newsletter is a priority project in the future. And I don’t know if you know it or not, but Mandan actually has a newsletter.

01:35:25,230	They put it in their utility bill, and oftentimes it’s a single sheet of paper tells you when all the meetings are it’s got the phone numbers for everybody. And just a little blurb, blurb, blurb on both sides of the page telling the citizens of what’s going on in the city. And I was talking to the city administrator over there one time.

01:35:40,730	He said, one, one month. They didn’t have the newsletter and it failed. Something happened and he got nothing but calls because people really relied on this newsletter. And I’m not suggesting a separate mailing. I’m suggesting one page, both sides in an existing mailing that we do anyway, so it won’t cost us anything in postage.

01:35:58,330	So I’d be happy to help work with you on that. I think we should do a newsletter, um, something that people can hold in their hand when they pull out that, um, utility bill. And, um, get a grasp of what’s going on in our community.

01:36:12,730	So that could be done. The mayor could issue a decree and we could do that. Thank you, Commissioner Risch. Uh, it is in the strategic plan for that very reason. And I know that this is something that you’re passionate about and we’re working towards it. So thanks for bringing it up.

01:36:30,270	There’s been a there are some staffing related resources at the moment. Yes. We plan on advertising for one of our vacant positions in October. I offered to write. It. I didn’t take him up on that, but I know he’s a very good writer, but we do plan on filling that position. That should free up some resources so that we can begin tackling that.

01:36:44,670	Okay. Any other comments or questions? Thank you. Thank you Doug. Oh go ahead, Commissioner Hull. Uh, sorry mayor. Commissioners. Thank you. Sorry, Doug. I yeah, you know, echoing the other commissioners, you know, a great job on this.

01:36:59,200	Great, you know, laying the public know, it’s like, hey, we’re we’re working on stuff, not just posing. Uh, is there anything you need from the commission to help on any of these? You know, our department directors do a great job of keeping things updated. And I believe doing a good job communicating with you as you will learn.

01:37:14,070	And if there’s ever changes to any of these projects, we have the ability, as this is a living document, to change it on the fly and then redirect as we need to. So any feedback on these reports would be fantastic. And then communicating with your departments. Thank you. Thank you.

01:37:32,800	Moving to item G, consider a request to receive and approve the city’s 2027 preliminary budget request and the Budget Committee recommendations. And, uh, Ryan is going to start us off, and Eric is going to lead us through. And then I’ll have a few comments. Go ahead. Uh. Mayor Schmidt.

01:37:54,500	Members of the commission, thank you for giving us the opportunity to present our preliminary 2027 budget. Um, as you all know, I came into this process way late in the game. Uh, for efficiency and simplicity sake. You’re right.

01:38:12,400	I’m going to go through just kind of a a brief overview of the process, uh, the process that we go through, some of the, the timeline, the objectives that we run through as far as putting this budget together. But then after that, I plan to turn it over to our comptroller, Eric Lund, as I know you’ll have plenty of questions.

01:38:27,130	And rather than me turning around and looking at him dumbfounded, uh, waiting for an answer, I’ll let him have that answer right at the top of his head, because I know he has that information and has been digging through it. So, um, to move forward, to start with, uh, the first slide we have went the wrong way. There we go.

01:38:45,100	Uh, just kind of summary of our requirements that we have as part of our budgeting process. Uh, the first obviously, we’re going to comply with state law, uh, statutes at North Dakota Century Code. And we’re also going to comply with our local ordinances. Uh, beyond that, we adhere to GAAP and Gatsby standards as our accounting standards that we must adhere to.

01:39:00,370	Uh, and then we we must establish a formal appropriation authority to expend funds out of our general fund, our special revenue funds, our debt service funds. Then we have a local ordinance that, uh, requires us to put a five year capital improvement project plan out there as well.

01:39:18,030	Additionally, for our other our other funds, our capital projects funds, our enterprise funds, internal service funds, we put together a financial plan, not necessarily a appropriation authority authority, but a financial plan for those that essentially fund themselves. Um, they bring in their own, uh, dollars and are able to expend those funds as well.

01:39:38,870	Um, beyond that, you know, this is just a summary of what that last slide was. Uh, the the process we have the budget process. We have, uh, each of those departments, we have our department directors and their assistants help put together a financial request for each of their agencies. And so that information is required.

01:39:57,470	We request that to be submitted to us this year. The deadline was May 26th. Uh, the Budget Committee then meets, uh, individually with each department. We also bring in the commissioner who has that uh, portfolio, who is a member of that portfolio.

01:40:16,830	And we go over each of those requests, um, in in kind with them, with the portfolio commissioners, with the departments, uh, to make sure that we have all the information we need to put that together. Uh, once those meetings are held, uh, Budget Committee gets together, uh, and makes those final determinations, the final recommendations to bring together what was given to you as part of this presentation.

01:40:35,970	Uh, the the final initiatives, the the one time spending asks the recurring spending as the base budget request. That’s all given to you. And it all comes from the budget committee, uh, that is put together. Um, that brings us to today.

01:40:55,070	Uh, the June 28th is our city commission, uh, reviewing and hopefully approving the 2027 preliminary budget. Uh, key to note that it is a preliminary budget will obviously move forward with any requested changes. I will have a public hearing beyond that. And then we’d ask for final approval in our September, uh, commission meetings. And that would be the September 8th. Hopefully.

01:41:17,770	Next, uh, Budget Committee, just as a refresher for for those of you that have been here and those of you that are new, uh, including myself, the membership of our budget committee is the commissioner with the financial, the finance portfolio. Um, previously or at the beginning of this process, it was Commissioner Cleary. Uh, Mayor Schmitz has taken over that portfolio.

01:41:34,830	And so he was involved in in most of the conversations and discussions that were held, um, beyond him, the city administrator, Jason, uh, assistant, the city administrator, Doug, and then the finance director, who at the beginning and throughout most of the process was the acting director, uh, Eric Lund.

01:41:53,930	And then we’ll forward on to me as we move forward in this process. Main objectives. Uh, the main objective is to develop a balanced budget that incorporates the prudent and strategic use of our reserves when appropriate. Beyond that, we want to adjust departmental budgets to account for any inflation or other cost pressures. Uh, we enhance the effectiveness and efficiency of public safety operations.

01:42:16,430	And then we also want to evaluate and address any staffing needs that come up in that our directors, uh, division directors are bringing to us. Um, there’s also a goal to preserve the, the improve the street and infrastructure conditions. We’ll continue to do that on an annual basis.

01:42:31,800	And as well as the the equipment replacement program that we have in place, we want to make sure that we’re continuing that, uh, to be efficient and effective with our resources. Once that that budget committee, we puts together their recommendations, uh, we, we take into account everybody’s, uh, ass their, their justifications for their assets.

01:42:55,270	And we base that based our recommendations on those assets versus the city’s financial situation. So it as we saw earlier today, there’s a lot of there’s a lot of asks for our dollar. There’s a lot of needs out there for our dollar. And we want to make sure that we’re spending that appropriately.

01:43:10,130	And where those those needs are, are being addressed appropriately. So, um, I will I will take a step back as we move into the the specific numbers. Uh, I’ll hand it over to Eric Lund. Uh, but just know that, uh, we’re always here to answer the questions. Um, new commissioners, existing commissioners.

01:43:26,470	Please feel free to reach out to my office. Our office? Uh, Eric and I can and can get you whatever you need as we move forward. Uh, but again, I want to.

01:43:39,600	I want to express some thanks to Eric, because I know he put a heck of a lot of work into this, and he’s going to have a lot of answers for you guys as we move, move forward this this evening. So thank you, thank. You, thank. You. All right. So first thing we’re talking about is the general fund.

01:44:11,200	Um, and what the the preliminary budget impacts for that look like, um, looking at just a real quick snapshot, we included the 25 actuals, um, the current operating budget for 2026, and then our projected budget for 2027. Um, if you look at the 26 budget, it shows a deficit spending. And that, again, is a reinforcement of using our existing reserves in an effective and prudent manner.

01:44:31,930	Um, but looking at 2025, you can see we had about a $7.6 million growth in fund balance. That just simply goes to show we conservatively budget.

01:44:52,770	We have a number of vacancies, um, that are helping to contribute to that, um, that unspent budget that we have, but also contributing to that is some of our general fund resources that we count on are exceeding expectations, whether it’s our licenses, our permits, the ongoing economic activity in this community helps to support those general fund, um, budgets. Mr. mayor. Good. Commissioner, mayor. Eric.

01:45:16,730	Um, so I thought when we did the 26 budget, we pretty well balanced the budget. But now, you show where $7.6 million, we’ll have to reach into our reserves. Yep. And that’s that’s assuming that we have 100% spend on all of our FTEs, all of our capital projects that we had planned. Um, we know that’s not going to happen.

01:45:36,500	That but that change, negative change in fund balance, that was because we had some reserves set aside for some projects that are being spent, and they have to run through the general fund expenditures, even though we’re not using current dollars for them. They were planned transactions. So, for example, like the fire station, $5 million, we.

01:45:56,330	Says the the money for fire station six and the coinciding fire engine that needs to be for fire Station six. Those are expansions of our existing resources, and those are cumulative in that $7.6 million projected, um, deficit. We have the reserves set aside in previous periods to account for that spending.

01:46:17,100	And actually had the dollars committed towards them. Correct. So the coming out of those reserves intentionally. In previous years, we had planned for this ongoing expense or this, excuse me, this future expense.

01:46:37,870	Um, and so now 26 well, preliminarily, when we did the 26 budget about this time last year, we thought we would be further along within that project and be starting to spend some of those dollars. We know today that we’re we’re not there just yet. And so those dollars, the budget authority would be carried forward, likely into the 27 budget.

01:46:56,000	It’s just not a part of this budget process until we approach the end of the year and know where exactly we’re at in that process. Yeah. Commissioner Hull mayor, commissioners, I apologize if I’m getting in the weeds because I know it’ll be a long process. Uh, but I see where it’s like 2025 to 2026. You know, the revenues dipped a little bit.

01:47:14,000	You know, it’s fine, but we we rejected a six, $6.5 million increase on a, uh, can you give me a, give me an idea on the why? Just just so we know. So what I will say with revenues, um, we are very conservative in our budgeting.

01:47:30,670	We do not want to put a revenue projection out there that we don’t believe is attainable. And so what I would say, seeing this information on a daily basis, our projected revenue of 72.2 million for 2026, we will likely exceed that. We just want to make sure that when preparing a balanced budget, we don’t put our revenue number so high out there so we can spend.

01:47:52,630	And then all of a sudden our revenues don’t meet that number. But we’ve already spent that number and we inadvertently live beyond our means. Thanks. That’s that’s why I was wondering. I’m like, if we got 78 million to play with, okay. But just. Yeah, yeah.

01:48:08,070	And keep in mind, when we’re looking at fund balance, there are various levels of fund balance that are are out there. We have non spendable things like prepaid inventory. Those types of things. We can’t use that obligation to pay to pay bills. We have committed resources fund balance to where the City Commission has allocated some of that fund balance intentionally for future projects.

01:48:30,730	And without action from the Commission, we cannot remove that commitment. We then have an assigned fund balance that is set aside by staff for ongoing Needs that we have specific earmarks for, for those types of things like, um, equipment reserve. Um, some of the computer expansion things that we have.

01:48:55,070	Um, that those things are accumulated through ongoing savings, um, things that weren’t spent that we had planned to. And then the last thing would be unassigned, fund balance. That’s essentially the least restrictive thing that we can use to pay for anything. Um, and so that 78 million isn’t just an open checkbook.

01:49:20,130	There are certain restrictions and allocations in place that are earmarking that number down at the end of 25. That’s 78 million. There was approximately 31 million of that is unassigned. So we have 40 million or so that is set aside for specific purpose. Thank you.

01:49:41,670	So looking at the the 27 budget, what we have here is we do have again looking at a intentional use of reserves for specific ongoing projects, whether they’re it related or certain equipment replacements like a fire truck or something of that nature. So to show that that 1.1, almost $1.2 million, we have reserves set aside directly for those intended purposes. Commissioner Risch.

01:50:07,730	For example, the fire truck, we have a specific fund for that $1.3 million. Fire. Yes. Fire truck. And we get that through insurance. The state, different places other than regular property taxes. Correct. So the next slide here is showing just a breakdown of our 27 budget general fund revenues.

01:50:36,000	You can see of the 78.7 million, about 39.3 is coming from tax collection and fees. An important thing to note here. While the the rollup does say tax collection, it also does include things like our cable franchise fee. Um, that they’re required to pay to the city of Bismarck through a contractual obligation.

01:50:54,130	It’s not significant in the total amount of 39.3 million, but just know that when it says tax collections, that is not the entirety of property tax. There are other incremental amounts that are put in there by accounting function.

01:51:18,300	Um, the other more important things, like the other financing sources, that is significant to the general fund, that’s where you’re going to find the nine point, roughly $9.8 million of sales tax, property tax bill down. That helps to support the general fund through the approved measure that was amended in 2018. At the 2019 amounts. Um, that number from sales tax, barring any other change. Um, through a ballot measure that will remain at roughly $9.

01:51:44,270	8 million going forward forever. Um, the other the other things are, I think, fairly self-explanatory. The charges for services as obviously an in-kind transaction with the with the our citizens, whether it’s, um, engineering fees for developers and, um, other departments such as the utility funds for preparing engineering projects, those types of things.

01:52:12,070	Um, inter-governmental that’s coming from other government agencies, things like state aid, um, contributions from Burleigh County for public health, for renting of the building, those types of things. All right. So just more about the general fund revenues. Um, roughly 49% of our general fund is is property tax driven. We’re estimating about $38.3 million.

01:52:44,630	And that is in accordance with, um, the new House bill, 1176 that passed in 2025, where we’re allowed to take 3%, um, of the dollar increase plus growth.

01:53:03,370	And so we part of your guys’s packet is the, um, property tax calculation that shows our three different levies of property tax for the general fund, the library and public transit, and showing that that compliance with um, state law.. Commissioner Risch. So. Um. Keep in mind now, so we have the 3% baked into the budget that’s allowed by state law, correct? Yes.

01:53:24,670	And, um, at some point we’re going to have to probably reduce the mill levy because a lot of people’s homes were assessed and are upset that their home is assessed more than they thought it should be. But at some point, will we.? Our property tax is based on the increases based on the total dollar. Now by by state statute. 3%.

01:53:44,970	The 3% individual homes within that will fluctuate at different values. Some may go down, some may go up five or 6 or 7. But we’re we are capped at 3% on the total dollar share. And that the individual tax statement is not dependent on the budget process.

01:54:06,300	So the answer is the mill levy will go down because our property values on average went up by more than. So we want to reassure some of the folks that are watching this. The rate.

01:54:19,070	Is because you’re because your house went up in value does not mean it’s going to go up. If it went up 10%, doesn’t mean you’re going to get a 10% property tax increase. Correct. Because we’ll probably reduce the mill.

01:54:34,900	Levy with House Bill 1176 Commissioner Risch the variable in the property tax equation changed from where we asked for a certain dollar at a certain mill amount to create our total revenue of property tax came. Now we know what the end result is of total property tax. We know what the valuation is of a mill. The new variable is the mill amount.

01:54:52,330	And so once you back into that, that mill levy essentially will decrease year over year as valuations are increasing. It doesn’t change the tax rate. It just changes that mill number down. It changes the percentage. Effectively the tax rate on fair value. Correct. It does change. It reduces. Yep. Um, so I already touched on the intergovernmental revenue and the other financing sources.

01:55:13,600	Um, and the charges for services. One thing I forgot to include there is our Centcom. Um, we are the financial, um, piece of record for Centcom, and we provide that service to Burleigh County and the city of Mandan.

01:55:37,800	And they are paying us proportionately for per the JPA, their level of service that they get back. Um, I don’t want to discount that because it is a significant input from the other two jurisdictions to help us maintain our 911 service. So looking at operating expenditures, um, keep in mind that these are these are base budget numbers.

01:55:57,970	They don’t include any of that information. Um, in one of the attachments where all the priority requests from the departments come out, this is strictly our base budgets that are occurring year over year for our, our people and our supplies to perform the duties. The first pie chart, if you take a look at it, $37.

01:56:20,370	6 million of our general fund is spent on public safety. That’s more than 53% of our overall spend. By and large, public safety is our number one spend. Commissioner Doll. Thanks, mayor. Sorry, I didn’t mean to cut. You off. I hope you’re okay. I was just. Wondering what is considered public safety.

01:56:38,470	Fire, police, Centcom? Is there anything else in that? That is what that is what we consider public safety. So when we talk about, um, those pieces in that first pie pie chart, those are by accounting function.

01:56:57,130	Um, so public safety is our police fire, our Centcom general government is kind of the catch all of folks that don’t have a better thing. Culture and recreation, um, we look at specifically is our Dakota Media Access support. Um, highways and streets is our engineering staff and then health and welfare is our public health staff.

01:57:21,130	Everybody else falls into general government like finance, administration, legal, HR, um, planning, community development or building inspections. Um, I hope I didn’t leave anybody out. It wasn’t intentional, but that’s that’s what our general government is, that we’re just overall support staff of all of the things within the city.

01:57:40,030	Um, the second pie chart is just an illustration of how we’re spending our general fund money. And it’s important to note that 52% or $37.1 million is strictly going to our staff, our human capital. The thing that makes City of Bismarck work, um, in addition to that, there’s another $16 million that go to benefits and all of the fringe costs of maintaining our employee base.

01:58:04,070	So, by and large, 75% of our our spend in the general fund is our human capital. Um, the people that interact with the public that provide those services. Commissioner. All thanks. Sorry. Quick question.

01:58:27,830	The grants and subsidies is that grants that we, as the city of Bismarck give out, or is that just a placeholder for when we get grants? That would be the grants that we give out. So whether they are in support of a a committee or like the sorry, got a fly bothering me, um, things like arts grants that we have given out in the past.

01:58:52,100	Dakota West Arts Council, um, the Human Relations Committee, when those monies are expended out, we’re considering them like an operating grant for that entity or that committee to be able to function. Um. Commissioner Risch. I just thought it was kind of amazing that we spend more money on professional, legal and contracted services than we do on buildings, equipment and vehicle services.

01:59:14,000	Kind of jumps out at me. You’d think the buildings and the equipment and vehicles would be a lot bigger part of the pie, right. And so professional, legal and contracted services that can be anything from an elevator maintenance contract if we have to, um, seek outside counsel, engineering and, um, architectural consultants that we need for, for various

01:59:35,230	ongoing things that maybe we don’t have all of the expertise in the city. And so we have to seek outside consultants. So that’s why that number sort of sticks out is that is all the by and large, gaining, um, professional consulting services to help us accomplish what we’re looking for.

01:59:54,870	Um, just in in words here, looking at the general fund. Keep in mind part of the general fund expense is helping to support roads and streets, forestry and weeds. Many years ago, forestry and weeds had its own individual mill levy.

02:00:15,770	And that through mill levy consolidation is coming through the general fund as support for their ongoing operations. Roads and streets is a huge cost to the city of Bismarck and the General Fund, predominantly because the highway tax distribution that we get from the state has remained unchanged largely for decades.

02:00:32,870	Our costs are continuing to go up because of expansion of city cost of of materials and machinery to do those things. And so the ongoing support for the general fund is continuing to increase for roads and streets until something changes with that highway tax distribution to help provide relief and more support of our road maintenance program.

02:00:53,670	Um, just general things like striping, crack ceiling traffic, paint, you know, maintaining those roads in the wintertime. Um, all of those things that our roads and streets folks are out there doing on a daily basis. Again, just to reiterate, our human capital is roughly three quarters of our ongoing general fund operating costs.

02:01:16,600	Um, within this budgeted plan, the budget committee is recommending a 4.75% salary increase per the city’s compensation plan. And how we come up with that. Um, a number of years ago, when the salary plan was put in place, as we look at the cost of living, um, index for government employees, and we take 75% of that, which gets us to 2.

02:01:41,200	75% market rate adjustment, essentially cost of living. Um, increases, you know, per the, um, the consumer price index. And then our pay plan adds another 2% to get to the total number, um, to allow for additional market adjustments and performance based metrics for employee raises.

02:02:08,400	Um, so but that number, excuse me, is included in the general fund number that you have in front of you with the priority initiatives. So to touch on the committed fund balance that I did previously, we have $20 million specifically set aside by the City Commission previously for related things. Emerald ash borer. Um, prevention and remediation.

02:02:36,200	When that hits our community, we want to make sure that we have some money set aside to prevent the the overall detriment to our canopy with ash trees in the city of Bismarck, 15.8 is earmarked for capital projects that is inclusive of Fire station six. Other things that we’ve looked at like, um, an initial consultation for the city county building, um, and those types of things, ERP replacements.

02:02:59,100	Commissioner Risch, Mr. mayor, commissioners. Eric. So the 15.8 million is already spoken for. It’s not something other than some of the design that we were talking about today for the City Council. It is set aside in fund balance to help us build the fire station. Six. And so it’s not accounted for in current 2026 revenues.

02:03:19,900	So fire station six, if that comes up to $6 million, we’ve got 10 million left right or yes. Yep. Essentially. So but there’s multiple capital projects inside that. Yes there is. There’s I believe there’s 5 or 6 of them that account for that 15.8 million. There was, I believe, 5 million set aside for Fire Station six.

02:03:40,370	Yep, 5.8 million. Of that. 15.8. Yes. 5.8. Yep. And then. Over here he’s going to try and get it lower. And then capital equipment is much like the capital projects that is intended for specific equipment replacement things. Um, whether they’re it related I believe there’s a fire truck.

02:04:02,200	Fire truck six is is in that number as well. Shifting gears to probably our our most important special revenue fund, um, which is our sales tax fund. Keep in mind that we have three existing sales taxes, one of which is divided into two separate pieces.

02:04:26,330	The 1% general sales tax, which is the oldest one for the city of Bismarck. Keep in mind these sales tax by ballot measure, they are restricted for specific use, um, within ordinance, the 1% brings in um, roughly $20 million per year. Of that, we use $9.8 million for property tax relief, $6.8 million to help offset the cost of our special assessment program.

02:04:52,870	Um, to help provide relief to the citizens and the overall cost of those special assessments. And then roughly 2.3 million goes to snow removal, snow gates, winter maintenance by ordinance for our roads and street staff that are out maintaining our roads. Um, so they’re safe for our use.

02:05:11,700	The second one is the half cent special road tax. Um, that was just recently renewed in June. Um, that is specific. Um, uses about 13.2 million a year. What we’re planning for that will be like the Tyler Parkway project. Um, that’s ongoing right now.

02:05:35,770	And this these uses come through the capital improvement plan that Gabe puts together in how we’re utilizing those dollars. This is just strictly a budgetary number, um, that he would come forward with a project that would get commission approval of how we’re spending that money specifically to a project. And then the last half cent.

02:05:58,430	Eric, I think there’s a typographical error on that because half cent is a half cent on pretty much all the same sales, and 13.2 million would be the total and some all the way up 14% for public safety and 1 million for public transportation.

02:06:17,130	I know that’s not right, because the split would be 40% of the total for public transportation, right? So in and so here what we’re looking at, mayor, um, this is looking at our 2027 budgeted spend. Um, the on the second half cent that’s broke out, that $14 million would be earmarked towards the um, the the initial spend on the police, the new police station, um, trying to advance funds, some of that construction before we have to go out to bond.

02:06:37,600	So can just for the public or most importantly, for the public, not just for the public and also for us. How much are we collecting and how much would be allocated towards public transportation? And Grant, I know what this is. This is you’re talking about the spend. But from collection standpoint, from a.

02:06:56,100	Yes, from a collection standpoint, a half cent sales tax brings the city just over $10 million. 60% of that is allocated towards public safety capital. Um, relate capital projects in nature, whether it’s equipment or buildings, facilities. And 40% of that is for public transportation.

02:07:19,400	So roughly just over 6 million is for public safety and just over 4 million is for public transportation. And so I don’t know if it’s in the slides, but I’m going to bring a highlight to it here.

02:07:39,930	Approximately how much is sitting in the reserves for each of those two categories? I don’t recall that off the top of my head, but the I want to say we have roughly $4 million in the public safety reserve today, because some of that has spent, um, for the acquisition of the the police department land. And I want to say there’s roughly four, $4.

02:08:01,270	5 million currently sitting in the public transportation, um, portion of that, we’ve only had two small asks, um, since the implementation, this for from transit. I think it’s cumulatively we have supplied we have supported them with about $1 million. Thank you. Sorry to distract. Nope. You’re good.

02:08:25,300	And so looking at the sales tax, we’re budgeting for about $1 million of support to public transit just to make sure that we have enough appropriations to to cover what their potential need may be. And that’s over and above their particular portion of the property tax. Correct. They are getting, um, a portion of the property tax, I. Believe $1 million is about what they figured they were going to be needing to cash flow.

02:08:46,100	Correct? Okay. Commissioner Connelly. Well, and part of when I wrote that measure, um, it’s specific to public transportation, not specific to transit, because as our city grows, transit is just not able to meet all of the dynamics within the city.

02:09:10,200	So as ideas come on board and we can meet some of those other special needs, um, hopefully those ideas come in front of us to where we can utilize and have some flexibility with. It. But transit happens to be our public transportation system right now, right? But they’ll always be part of the. Mix. No, I understand, I just that’s the point I was making. Okay.

02:09:35,430	So looking at the 27 budget, um, specific or significant initiative in items that that we have ongoing that we know about. Fire Station six, the new police station, a new fire truck that goes with fire Station six, as well as typical ongoing replacements, potential city hall renovation, the equipment replacement program. You’ll oftentimes hear this referred to as the fleet plan.

02:09:57,670	Um, that’s something that we implemented probably 5 or 6 years ago and have worked very hard with our fleet Department to make sure that we are maintaining and replacing all all of our fleet vehicles throughout the city on a regular cadence so that we’re not overextending ourselves or having these huge, um, bubble

02:10:17,070	years where we have to replace four and $5 million worth of equipment. So that’s that’s what the equipment placement program is. Um, so if you hear fleet Plan, that’s what we’re talking about.

02:10:38,600	And then our ongoing annual, um, support of the street maintenance projects and then identifying new positions for the recommendation for the general fund is a public health social worker, as well as an additional deputy fire marshal to help with that workload that is undergoing in the fire department. Looking at our our enterprise funds are our fee based funds.

02:10:57,100	The ones that operate more like a business with feed generation, the water treatment plant expansion, um, we have some some funding in place. Um, and we’re going to continue working towards the, the cost of that project. That is a three or 4 or 5 year ongoing project into the future. Um, there are changes and updates and rehabilitations going on at the wastewater treatment plant.

02:11:20,970	Um, the airport terminal expansion project, I believe 27 is the final year for the Hay Creek Lift Station and interceptor project, um, for sanitary sewer purposes. The event center HVAC project that will be undertaking um 27 will be a continuation of where we get going on 26.

02:11:43,930	The South Bismarck flood control project, and then the new positions for the enterprise funds that we’ve looked at is an additional airport police officer, um, position that’s paid for by the airport. A master electrician position within our building maintenance staff and then industrial pretreatment tech. Um, that I believe works with the wastewater treatment plant in our businesses, in the community.

02:12:12,270	Looking at the utility funds, the thing that’s probably most pressing is what are the rate changes that are going to affect those utilities. And looking at our citizens utility rate, um, the utility bill costs.

02:12:31,470	When we put this together, we looked at a typical single family residence that has a three quarter inch water meter as as their base rate. Um, the items that you’re going to see is about a 38 cent monthly increase on our streetlights and traffic signal. Um, line item, it’s about 3%. The solid waste utility. So our garbage collections, um, our landfill, that is going to go up $1.15 recommended. It’s about 6.12%.

02:12:58,130	Um, and then the recycling aspect of that is going up $0.40, which is 4.9 for 5%. That is a direct pass through per our contract with Waste Management in providing that recycling service for us. One thing to note, with the waste collection, it is the highest increase on there.

02:13:17,900	If we would not have made changes to the um, not picking up extras and just continually doing garbage service as we had for all of the years prior, this number would have been much higher of a rate increase change for the solid waste utility.

02:13:39,800	Um, looking at the water utility, we’re estimating a 64 cent um base rate increase and a six cent per unit increase. And so that’s based on your levels of consumption within your household. Um, through the, through the various tiers, both of which are about 3.3 to 3.5% of an increase, and then on the sewer, sanitary sewer side, $0.29 to the monthly base rate, base rate, and then $0.

02:14:01,270	08 on the per unit increase, both of which are two and a half. So cumulatively, we’re estimating at about a $3 monthly increase, all in for all of the services that our utility bill provides to our citizens. On $3. It’s about $3.

02:14:31,730	So just to kind of wrap it up, the overall budget committee recommendations, um, of the FTEs, there were 14 positions requested citywide, eight of which were approved. Um, note to that only 11 of them were FTEs.

02:14:51,900	The airport did request three part time, um seasonal operators to help alleviate, and would only be utilized if necessary in the winter months to provide relief to the existing staff if they have to do, um, emergency snow removal operations. They just don’t simply have enough staff today to run 24 over seven for extended periods of time. Believe it or not, people need time off and sleep is essential to providing safety out there. Um, the ongoing operating.

02:15:13,200	So these are budgetary increases to the base budget. These are the ones that are going to help us stave off some of those, um, operating cost increases, the inflationary that we’re seeing, um, requested was about 1.7, almost 1.8 million in budget committees recommending 1.4 for approval, one time cost. These are when we talk one time.

02:15:34,070	These are truly a project based thing. It’s one time it’s not going to have ongoing implications. It’s to pay for an implementation. Those types of things. Um, that ask was 6.2 million and the the budget committee’s recommendation is just under 3.4 million. Commissioner Risch. Mayor, Commissioners. Eric.

02:16:00,730	Um fte rec requested 14 positions, recommended eight positions. I noticed you listed, uh, a social worker and a fire marshal. What are some of the other six? So the social worker and the fire marshal, those are direct general fund related. Um, the other ones, those are on the attachment that I sent out Friday evening. Okay. And they are inclusive of the police.

02:16:22,070	Uh, the airport police officer. Okay. Um, the master electrician and the industrial pretreatment tech. So those are. Those. Are those are enterprises. Those are the enterprise funds for those pieces. And the capital projects. This is the last, last slide.

02:16:52,470	Um, just highlighting, um, some of the things, the significant cost inputs that the Budget Committee has has considered through this process. The police station, um, preliminarily, until we get a GMP, GMP in place, um, we’re estimating 97.6 million. This is a total budgetary ask, likely. Um, we’re going to try to fund 14 million of that.

02:17:13,930	And the rest of it will go through a sales tax revenue bond for us to complete that, that police station, fire station six. Um, as mentioned before, in the committed fund balance, we have 5.8 million set aside. Preliminary estimates say that we’re going to be at about 6.4 million for total construction costs.

02:17:34,770	So we’re we have 700,000 budgeted in general fund spend for this year to help accomplish the the final part of that funding for Fire Station six, the street repairs, maintenance and construction, that’s 42.40 point $2 million. And that’s that’s a mix of combination of sales taxes, special assessments and other grant related, um, revenues that we may have from D.O.T. Federal Highway.

02:17:58,670	Um, to accomplish those costs. Um, street lights and traffic signals, they have a spending plan identified intersections where we’re replacing cabinets. Traffic signals were estimating about 1.59 million from that utility worth of spend. Phase one of the airport terminal is estimated at 66.5. We’re putting that in as a budgetary number.

02:18:23,870	Keep in mind that we may not spend it all. It will have a timing component of of how that goes, and the additional money will be rolled into to future years if we don’t actually get to that point. And then the the event center, HVAC, um, this was supposed to be, excuse me, year two. Um, of that part of it.

02:18:44,000	So it’s estimated at 6.35. It may, depending on the timing of the project. Um, that number may fluctuate or need to be adjusted upwards depending on how we, we get there.

02:19:05,400	And then lastly, the utility operations, um, we’re estimating that we’re going to have $14 million into the water treatment plant, um, of actual construction this upcoming year. Um, 4.3 million to finish up the Hay Creek Interceptor, the about 12.7 million in the wastewater treatment plant rehabilitations and expansion.

02:19:32,430	And then South Bismarck flood potential $65 million spend in 27, um, depending on how that project turns out for us with our our revenue partners, um, the state and the federal government, if we can get that going. So those are really the highlights, um, of the 27 preliminary budget, just to kind of supplement all of the information that was sent to you guys Friday evening.

02:19:58,830	Um, have any questions for me, commissioners? Do you have questions of Eric? A good job, Eric. Thank you. So my request is the on the being on the budget committee and the commissioner holding that in my portfolio is to us as commissioners is to look at the departments that you have in your portfolios to see if there’s any adjustments that we should be making to the budget.

02:20:19,070	We do need to approve the preliminary budget. Um, I’ve already had conversations during budget Committee, in particular around a couple of topics that I probably will be working with, uh, my departments on. And one of those could ultimately affect all departments, and that’s going to be compensation adjustment.

02:20:39,400	Um, because I think we need to take a look at that. It’s this year. It’s pretty strong. And we may have to look at that, but I ask that each of us visit with our departments to see if there’s anything to do that, uh, allows us to be more streamlined and efficient and deliver our services for a

02:20:56,700	lower dollar cost. And I know that some of you have probably already had those conversations, but with two new commissioners, you’re really, you know, we’re throwing you into the fire. And, uh, so if anybody has any direction right now for Eric, great.

02:21:13,630	Um, we can do that and then we can make a I would entertain a motion to approve, approve the preliminary budget, knowing it is going to change. And really, what? Approving the preliminary budget tonight allows us to take direction from from the commission. Um, in preparation of the final budget. It keeps us on schedule to be able to hit the September 8th meeting.

02:21:36,000	Um, for approval of the final budget. So that way we can stay on schedule with the certifying to Burleigh County and doing all of the things we need to do in accordance with North Dakota Century Code.

02:21:53,070	If we don’t get a an approval of the preliminary tonight, that means we’ll have to come back and have another meeting to get approval of the preliminary budget, which will set everything back and likely will require, um, special commission meetings in September in order for us to make sure that we get final approval so we can get through all the way through all this entry code requirements and dealing with levying property tax to Burleigh County.

02:22:10,670	Our intent, knowing that Commissioner Doll and Commissioner Hall, you guys were not commissioners at the time to go through the budget Committee and meet with your departments.

02:22:31,170	Um, we would like to be able to, you know, offer and extend a an invitation to meet with, with your departments to meet with Ryan and I, to answer questions that you guys may have about all of this information that you’re likely seeing for the very first time. Um, we understand that there’s a lot of information and that there’s a learning curve to understand the method to our madness and achieve what we’re trying to achieve.

02:22:47,530	For the city of Bismarck. And so, um, Ryan and I would like to offer that, that to you guys to be able to meet with you, to help answer any questions that you have about the process and what what’s all included in this information. Mr. Mayor? Commissioners.

02:23:04,600	Eric, I just have a few things that I want to toss out and not making formal motions or anything, but I’m constantly working with my portfolio to try and find efficiencies. We need to find efficiencies. I want to pay our employees well. They need good fringe benefits. I believe in that strongly.

02:23:21,670	But things change and we can find some efficiencies. Our police department or my friend the chief in the back, um, he was able to one of the administrative positions, um, she left the other administrative position, took care of all those responsibilities. That’s an efficiency, um, technology changes.

02:23:42,300	We don’t need quite as many support staff and some of these places that we that we once had. But the only issue I have with that is that full time position is still on the books for the police department, and if he needs it, he needs it. But it’s vacant and I’d like to see that position taken away. And the chief, who I love, the chief.

02:23:58,000	If you need a position in the future, you can count on me to help you get a new one. But that fta FTE should be taken off the books. The other thing I’ve been pushing, uh, we’re trying some electric vehicles.

02:24:14,000	So my wife said to me, well, what do you know about electric vehicles? You should go get one. So I went and got one, and they’re remarkable. I’ve got a essentially a three quarter ton pickup made in America purchased in Bismarck. And I’ll probably save close to $5,000 a year in operating costs on that one vehicle. That one vehicle.

02:24:29,470	I’ll give you an example. Three weeks ago, I was in Medora and I had to get on a conference call with the Burleigh County zoning for 3.5 hours. That vehicle ran.

02:24:42,700	I did not use a dollar’s worth of electricity, and it was air conditioned, and I had a cooled seat. Now, the other night I was at a baseball game, the larks game, and the police officer was there, a very nice young man, and he’s got to keep his vehicle running because he got all that electronics. It’s 100 degrees outside and whatnot.

02:24:57,370	So that vehicle was running, burning gasoline for four hours. I don’t know what it cost, but it certainly wasn’t a dollar. So I would just encourage some experimentation with some electric vehicles because they’re vastly more efficient. They’re just vastly more efficient.

02:25:14,270	Um, some of the police departments around the country claim they save 7 to $10,000 per vehicle for per year, but we’ve got to get from here to there. And I’d like to try some. And I see there’s none in the budget, even though I’ve been pushing it. Another thing I see the Great Plains Food Bank asked for $50,000, and that’s not included in the budget.

02:25:29,870	And I’m not a fan of giving city tax dollars away to anybody. Okay, but included in the budget, we have $250,000 for the Vision Fund, $200,000 for the chamber, $50,000 for the downtown counter. So that’s a half $1 million.

02:25:49,730	Um, but if you if I got to pick and choose, who you give city tax money away to, and I’d rather not give any of it away, I’d rather give it to some poor kids that need food rather than the Vision Fund, where I see time and again some of the most affluent people in the city are getting buy downs on their loans to buy a new building.

02:26:06,170	Um, employee raises what I what I suggest on employee raises, whatever the number might be, it’s 4.75. You’re going to look at that and adjust it. But year after year we give this percentage increases in employee wages. And I brought this up last year on the budget.

02:26:21,900	And what what happens then is the highest paid employees because it’s a percentage base. Their wages go like this. And the lowest pay go like this. But the spread between the highest paid employees and the lowest paid employees keeps widening and widening.

02:26:38,070	We have some department heads that are not just paid twice as much, not three times as much, but four times as much as the lowest paid employees in their department. So my recommendation is that we have a flat increase pay for everybody. And I’m not suggesting we do this every year, but this one year we do a flat increase, whatever that 4.75.

02:26:54,070	Or if you have some other number, come up with that number and divide it up with all our city employees. Give everybody the same amount. Somebody said that, well that’s socialism John. I said, well no, no, no, that’s not socialist socialism.

02:27:08,570	If we paid every employee the same amount and we don’t, we have 670 employees in the city. No two of them are paid the same. That’s amazing to me. That’s completely amazing to me.

02:27:27,230	So my recommendation is that we take instead of a percentage base, everybody, um, gets the same amount as long as they’re a full time employee, been employed since October, whatever the the guardrails are. Um, and the last thing I just want to comment on is I keep asking the department heads, let’s find some efficiencies.

02:27:45,470	Well, now, anybody that’s watching this at the city employee, I’m calling on city employees come up with some ways in which we can find some efficiencies that don’t affect your wages, don’t affect your fringe benefits, but ways in which we can be more efficient and in your line of work. And get them to me, get them to the mayor, get them to the portfolio holder, whatever, so we can find some efficiencies as we proceed forward. So that’s my kick.

02:28:04,000	Those are my recommendations. And. Commissioner Hull. I guess, uh, Mayor and commissioners Billy and Commissioner Risch his idea about efficiencies. I know one thing on the campaign trail I pitched was, uh, do you know, put a bounty on efficiencies? I used the example of, uh, if there’s a $2,000 printer and they’re spending $100, you

02:28:23,330	know, it breaks down every month and they have to spend $100 to fix it, you know, pay a repair person to come in because they can’t, you know, get the $2,000 to fix it.

02:28:37,730	Let’s, you know, let’s give them a, you know, give that department a $2,000 loan, you know, zero interest loan out, you know, give the employee that report a reward. But if that printer last five years, it’s like, you know, I would use the example of the library if they, you know, once they pay it off, if they got $100 a month, they, you know, they, you know, I’m sure all the departments can.

02:28:50,500	But, you know, budget wise, I feel the library could, you know, it’s like, you know, they could do amazing things with extra $100 a month over that, you know, the two and a half years that they would have so rewarded the department. It reward the employee.

02:29:02,900	But in the end, it also just, you know, improve service and save money. If they want to take that printer out back like office space, that’d be, you know, that’d be another reward too.

02:29:15,770	But that’s one idea I would pitch to, you know, incentivize people to find these efficiencies where it’s not trying to reduce headcount unless there’s unless that works, but it’s finding those, you know, passive aggressive IT problems or whatever it is. Mr. mayor, I just to follow up on that, I think I’ve discussed this with our human resources. I don’t think we’re allowed to. Let’s say we put out a bounty.

02:29:35,500	Whatever you can find in efficiencies, you get 10% of your savings for the first year. Can we even do that, Leanne? Um, reward employees in such a way? I think what we discussed is one other point. It wasn’t. I think it’s a great idea. I mean, then they’d go find some efficiency. And the legal might be an issue. So., yeah.

02:29:53,500	Mayor and commissioners, um, I think it would depend on how it’s set up. I mean, if it’s some we can’t give employees anything beyond $25. But I know at one time the state had some kind of a program where employees could get X dollars of savings for lights or computers being off or whatever

02:30:10,300	the case is. I think it would depend how you set it up. Um, if it would be considered a bonus or something like that, you could do that. I’m going to try to ring this like we’re getting a little off topic here. Not a little.

02:30:23,930	We’re a lot off topic, right? Um, we’re talking about the preliminary budget, and I have no problems as we move forward into the final budget. And the hearing is if if you have departments you wish to bring ideas to their department and that comes back through. So we get it into the final budget.

02:30:40,000	And if there’s cost savings, believe me, I’m all in favor of that. I would love to see our our general fund spend on operating expenses drop if we can. I think there are some areas in that how we compensate employees.

02:30:57,070	I my first number is is what’s the dollar amount that we’re allocating to to pay adjustments, how we get to there and how they’re allocated. That can be a secondary proposal. Um, but let’s keep ourselves focused on what we’re trying to accomplish here. Uh, it’s great to talk about some efficiencies and we need to do that.

02:31:14,670	But, you know, we’re talking we have a we have a $80 million budget, general fund budget. And if I find $2,000, I don’t know how significant that is. I got to be honest. It can help. But I need a lot of $2,000 adjustments. So go ahead. Commissioner Doll. I just had a question or clarification.

02:31:30,730	If we approve the preliminary budget tonight, um, and then we meet with our departments, we can’t add to the budget. Correct? It can only be subtracted. So what we can’t do. Well, there is not a can’t.. There’s no longer with the passage of House Bill 1176, we can adjust the budget. However we see fit.

02:31:55,270	We are in terms of levying tax. We are already asking for the max that’s allowable for the city of Bismarck. And so if we were to increase general fund spending, we would then have to find other revenue sources to help support that or identify the use of reserves to accomplish those things. Yeah.

02:32:15,730	And just to be clear, I’m not advocating for adding anything particular into the budget. I just wanted to come back to the preliminary budget and know what the bounds of that one. Yep. We are hopeful with what is presented tonight that we’re aware of everything that we can be aware of, and it’s been presented and that that number would not increase.

02:32:35,870	But there is not a guarantee that in a month from now, something may rise to the attention where we need to include it in the the final budget. All right. Well, with that in mind, I move to approve the preliminary budget as presented. Second. Do we have further discussion? Hearing none, we’ll call roll. Commissioner. Dull? Yes.

02:32:59,870	Commissioner. Connelly. Yes, Commissioner. Hello? Yes, Commissioner. Risch. Yes. Mayor Schmitz. Yes. Thank you. Eric and Ryan and Eric, again, I want to thank you because I know you had a major lift. You were flying. You and your team were flying shorthanded during the budget process. And I commend you for all the work.

02:33:22,800	And you got us to this point. I really appreciate that, Commissioner Colin. Um, I, I concur on that. I guess I jumped the gun. I want to share when we get to other business, too. Okay. Um, so that brings us two other business. I will first ask the commissioners if they have other business.

02:33:41,530	I have one item to call forward. But go ahead. Mr. Mayor. Commissioners, I got a couple of things. Um, I’ve now got building inspections, and Brady is going through the code and revising our building code. Um, he’s reached out to a bunch of folks, and he’s not getting much of a response.

02:33:58,200	So anybody that’s a builder or somebody who’s interested in our building codes, now is the time to interact with our Brady over at building Inspections or their team. Put your input in on this new revision to the building code.

02:34:15,130	So I’m, um, I when I was campaigning for office, I got these complaints about, oh, they made me do this. They made me do that. Well, if there’s something that’s erroneous that really doesn’t enhance safety, this is the time to adjust it. Let’s let let’s do it. I’m all in on that. Uh, then I’ve got some good news. And I happen to like good news.

02:34:31,400	Uh, when we change the way we’ve collected garbage, uh, we, you know, without picking up the extras and whatnot, we made the commitment that we’ll look at some ways in which to mitigate some of the effects.

02:34:46,270	And last fall, we gathered up leaves on a couple of different garbage days, provided they were in paper bags and things like that. And that was helpful. But I’ve been getting, um, people, two different people contact me about the issue of branches.

02:34:59,500	They used to be able to tie up their branches and leave it next to the can in the in, the people would pick up the extras. Well, we don’t do that anymore. They you actually have to go to the landfill. You got to go through the scale. You got to go dump it off, come back through the scale again. And it’s a it’s a pretty big inconvenience, especially when it’s muddy out there.

02:35:14,000	I’ve been out there when it’s muddy, and I go in there with a relatively clean truck and it it’s a mess. When I leave the dog on landfill. But I’ve been working with, um, Steve Solway and Toby Sheldon, and as of today, we’ve got a roll off in North Bismarck and a roll off in South Bismarck that you can put tree branches.

02:35:31,500	Now, we don’t want to be taking big logs and trees, you know, things like that. But you’ve got some tree branches. There’s one at the Ash Coulee, a water tower site on the north end and down by Cottonwood, um, parking lot down on Santa Fe and 12th on the south end.

02:35:48,600	And I’m just urging our citizens to just put branches in there. We’ve had situations. What if somebody’s waving at me. Four inches or less? Four inches or less. Okay. The branches have to be for our former city forester, who knows? Branches four inches or less that go into those roll offs. Um, but be respectful.

02:36:09,100	Uh, in the past, we’ve had people throw tires in them. When we used to do this, I talked to the mayor of man and the other day and just mentioned, I like they’ve got a thing in Mandan where they allow branches. He said, yeah, a guy threw an engine block in it. Well, you know, that’s that’s that ruins it for everybody.

02:36:24,970	If it gets too abusive. So put all the branches in there. And when you put the leaves in the grass and the other roll offs, make sure you dump, dump them out of the plastic bags and do your civic duty as a citizen to treat this new special thing.

02:36:38,300	We’re getting you places to haul your branches so that Steve’s in the back there. Thanks, Steve. And pass on my thanks to Toby as well. Commissioner Connelly. I just want to thank, uh, our police department, Centcom, uh, medical support staff, and both in the community and whatnot.

02:37:01,300	In the last 48 hours, we had a hard circumstance that’s going to change a couple of families. And, uh, it’s something that working out in comfort a little bit, it’s it stays with people. So I just want to say thanks a lot for supporting our community. Yeah.

02:37:21,400	Anybody else have other business? If not, I’m going to ask Jason to come forward because we need to recognize one of our wonderful team members. Mayor, commissioners, uh, pleased to share this information with you. We held this at the last meeting because she wasn’t here to help celebrate.

02:37:41,500	But we have our public health director, Renee Mack has been recently appointed to the National Association of County and City Health Officials. She often refers to this as Naco. Uh, Renee will be representing region eight, uh, which is composed of Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming. She is the first representative from North Dakota on this national board, and it is a four year appointment. She comes in as the current vice president.

02:38:04,800	And then we’ll move through the ranks, uh, over the over the next few years. Uh, I just wanted to bring this out. This is a pretty important distinction for Renee. Uh, both professionally.

02:38:19,100	But then for us as an organization, because we have a voice on a national board, and she is representing the rural communities and and us as an organization, and Bismarck as a community. And I think that’s a pretty special thing.

02:38:33,730	And I think it’s worth giving her a little time at the podium so she can talk about this and maybe share some of her experiences while she was at the conference two weeks ago in Louisville, Kentucky. She’s not prepared for this, but I think she can handle it just fine. She’s already so. Congratulations, by the way. On on the opportunity to serve our country and our state. Thank you. Thank you very much. Um, I don’t. Know what to say. Jason explained it very well. Um.

02:39:02,900	I just want to say, okay, so it’s naco. It’s the National Association of City and County Health Officials, and it is the professional association for local health officials like me, that work for city and county health departments across the nation. Um, there are 3300 local health departments across the nation just like ours.

02:39:23,930	And there’s never been on the executive committee representation from region eight, nor from the state of North Dakota. And so it is an honor for me to represent the city of Bismarck and also have the opportunity to bring a voice of rural and, um, more secluded areas to the executive committee, uh, making decisions about policy and public health, having conversations with CDC,

02:39:43,470	federal level, um, individuals so we can put our input and, um, and voice at the table along the other large metro areas. Because we are innovative here, we have good ideas. Um, we’re doing great things.

02:40:02,270	And for us to be able to share that information at a national table is an honor for me. And it was it was a competitive election. And so I am the only rural person that is on the executive committee. So super excited. Thank you. Thank you. There being no other new business or other business, I should say meeting is adjourned. Thank you everyone.