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12-16-03 agendaCITY OF RICHFIELD, MINNESOTA TUESDAY, DECEMBER 16, 2003 SPECIAL CITY COUNCIL MEETING COUNCIL CHAMBERS 6700 PORTLAND AVENUE 6:00 P.M. AGENDA Call to order Roll call 1. Public hearings and second reading of the following ordinances: • Gas franchise -fee on CenterPoint Energy Minnegasco for providing gas service within Richfield and consideration of resolution authorizing summarypublication of ordinance S.R. No. 299 • Electric franchise fee on Northern States Power dba Xcel Energy for providing electric service within. Richfield and consideration of resolution authorizing summary publication of ordinance S.R. No. 300 Notes: Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 612-861- 9702. _i STAFF REPORT AGENDA ITEM # j REPORT # 299 CITY COUNCIL MEETING DECEMBER 16, 2003 REPORT PREPARED BY: ~~ EASTLING, DIRECTOR OF PUBLIC WORKS NAME TirzE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: 1~ SI NA URE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Public hearing and consideration of second reading of the attached Gas Franchise Fee Ordinance and consideration of resolution authorizing summary publication of ordinance amendment. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: Approve second reading of the attached Gas Franchise Fee Ordinance and the attached resolution authorizing the .summary publication of the Ordinance Amendment.. II. BACKGROUND At the November 7, 2003 City Council Budget Worksession, the City Council directed City staff to prepare Gas and Electric Franchise Fee Ordinances for City Council consideration. At the November 12, 2003 City Council meeting, the City Council scheduled a public hearing for December 16, 2003. The City Council wanted to provide a dedicated funding source for important infrastructure elements. The following annual expenditures were identified (amounts are based on a full year cycle): • $444,000 for Pavement Management • $200,000 for ADA/Building Code compliance 1216 Gas Franchise Fees • $6,000 for Forestry In addition to the publication of notice in the Richfield Sun Current on December 4, 2003, a press release was also published on December 11, 2003 in the Richfield Sun. The attached proposed ordinance fee schedule (Exhibit A) now has an additional rate classification, LVDF (large volume-dual fuel) that was not on the original ordinance fee schedule at the first reading. Even though the City does not currently have customers in the LVDF class the City Attorney recommended the rate at the $10.00 charge be added to the franchise fee ordinance for future reference. III. BASIS OF RECOMMENDATION A. POLICY • Dedicated funds from franchise fees can provide a reliable funding source for the important infrastructure elements of streets, buildings and trees. B. CRITICAL ISSUES • Unstable State funding has resulted in cuts in the General Fund which has in turn led to deferred maintenance of city streets and extended delays in addressing ADA/building code issues at City Hall. C. FINANCIAL • The fee schedule included in the Gas Franchise. Fee Ordinance can generate about $238,129 annually. D. LEGAL • The City Attorney drafted the Gas Franchise Fee Ordinance to be consistent with the franchise ordinance. • The Public Hearing. Notice met the legal publishing requirements. IV. ALTERNATIVE RECOMMENDATION(S~ • The City Council can change the amount of the fee. For every one percent ($.0145 for residential customers and similar for commercial) adjustment up or down, the total annual revenue changes $2,405. • The City Council could decline to approve this ordinance and look for other ways of funding. • The City Council could delay the public hearing to a later date, but that would delay collection start times by at least a month and maybe longer. V. ATTACHMENTS • Proposed Franchise Fee Ordinance • Resolution approving summary publication • Press Release • Franchise Fee Revenue VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None_ 1216 Gas Franchise Fees ORDINANCE NO. CITY OF RICHFIELD COUNTY OF HENNEPIN STATE OF MINNESOTA AN ORDINANCE IMPLEMENTING A GAS FRANCHISE FEE ON CENTERPOINT ENERGY MINNEGASCO FOR PROVIDING GAS SERVICE WITHIN THE CITY OF RICHFIELD THE CITY OF RICHFIELD ORDAINS: SECTION 1. The City of Richfield Municipal Code Appendix E is hereby amended to include reference to the following Special Ordinance. Subdivision 1. Purpose. The Richfield City Council has determined that it is in the best interest of the City to impose a franchise fee on those public utility companies that provide natural gas and electric services within the City of Richfield. (a) Pursuant to City Ordinance No. 2003-10, a Franchise Agreement between the City and CenterPoint Energy Minnegasco ("Minnegasco"), the City has the right to impose a franchise fee on Minnegasco in an agreed upon amount and fee design, as set forth in Section 6.1 of the Minnegasco Franchise. Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on Minnegasco under its Gas Franchise. in accordance with the schedule attached hereto as Exhibit A and made a part of this ordinance, commencing with the Minnegasco's February, 2004 billing month. The franchise fee is in lieu of all permit fees otherwise paid by Minnegasco for its use of Public Ways and Public Grounds in the City. Subd. 3. Payment. The said franchise fee shall be payable to the City in accordance with the terms set forth as follows. The franchise fee shall be payable quarterly and shall be based on the complete billing months during the period for which payment is to be made. The payment shall be due the last business day of the month following the period for which the payment is made. The fee may be changed by ordinance from time to time, however each change shall meet the same notice requirements and may not occur more often than annually. Such fee shall not exceed any amount, which the Company may legally charge to its customers prior to payment to the City by imposing a surcharge equivalent to such fee in its rates for Gas service. The Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles or customer refunds. The time and manner of collecting the franchise fee is subject to approval of the Public Utilities Commission, which the Company agrees to use best efforts to obtain. The Company agrees to make its records available for inspection by the City at reasonable times, provided that the City and its designated representative agree in writing not to disclose any information that is not public data which would indicate the amount paid by any identifiable customer or any other information regarding specific customers. Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such JMS-240028v1 RC145-326 utility company for the cost of the fee and that Minnegasco will surcharge its customers in the City the amount of the fee. Subd. 5. Record Support for Payment. Minnegasco shall make each payment when due and, if requested by the City, shall provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectibles, refunds or error corrections. Subd. 6. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with Section 2.5 the Franchise Agreement. Subd. 7. Effective Date of Franchise Fee. Notwithstanding the effective date of this ordinance and notwithstanding any contrary provisions in the Franchise, the effective date of the fee collected under Subdivision 2 of this ordinance is the later of ten (10) days after the publication or after the sending of written notice enclosing a copy of this adopted ordinance upon Minnegasco by certified mail. It has been agreed to in advance by Minnegasco's representatives that Minnegasco will abide by the provisions of this Subdivision 7; provided fee collection will not commence before the later of the Company billing month set forth in subdivision 2 or the first billing month commencing 20 days after the foregoing effective date of the franchise fee. Subd. 8. Fee Review. The City Council shall begin a review of this. Ordinance by June 30, 2008 to determine whether to continue, terminate or modify the fee. If the. Council deems it to be in the City's best interest to continue the fee in its current form, no Council action is necessary. If -the Council deems it to be in the City's best interest to terminate or modify the fee, the Council shall give Minnegasco at least sixty (60) days written notice prior to the proposed change.. Subject to the City's rights under Minnesota law, the City shall obtain the consent of Minnegasco to any proposed increase in the fee but may unilaterally decrease or terminate the fee. SECTION 2. This ordinance takes effect as provided herein. Read by the City Council of the City of Richfield this day of , 2003. Read and passed by the City Council of the City of Richfield this day of ..2003. Mayor City Clerk/Administrator APPROVED AS TO FORM: City Administrator JMS-240028v1 RC145-326 EXHIBIT A MINNEGASCO GAS FRANCHISE FEE SCHEDULE Class Residential Comm-A Comm/Ind-B Comm/Ind-C SVDF-A SVDF-B LVDF Fee Per Meter $1.45 $1.45 $4.50 $10.00 $10.00 $10.00 $10.00 Franchise fees are to be collected by the utility in the amounts set forth in the above schedule, and submitted to the City on a quarterly basis as follows: January -March collections due by April 30. April -June collections due by July 31. July -September collections due by October 31. October -December collections due by January 31. JMS-240028v1 RC145-326 RESOLUTION NO. RESOLUTION APPROVING SUMMARY PUBLICATION OF AN ORDINANCE AMENDMENT TO APPENDIX E OF THE RICHFIELD CITY CODE WHICH PERTAINS TO THE FRANCHISE ORDINANCE. WHEREAS, The City of Richfield has adopted the above referenced ordinance, amending Appendix E to the Richfield City Code, and WHEREAS, the verbatim text of the amendment is cumbersome, and the expense of publication of the complete text is not justified, NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, that the following summary is hereby approved for official publication: SUMMARY PUBLICATION BILL NO. AN ORDINANCE IMPLEMENTING A GAS FRANCHISE FEE ON CENTERPOINT ENERGY MINNEGASCO FOR PROVIDING GAS SERVICE WITHIN THE CITY OF RICHFIELD The purpose of this ordinance amendment is to impose a franchise fee on Minnesgaso under its Gas Franchise Agreement commencing with the Minnegasco's February, 2004 billing month. The franchise fee is in lieu of all permit fees otherwise paid by Minnegasco for its use of Public Ways and Public Grounds in the City. FEE SCHEDULE Class Fee Per Meter Residential $1.45 Comm-A $1.45 Comm/Ind-B $4.50 Comm/Ind-C $10.00 SVDF-A $10.00 SVDF-B $10.00 LVDF $10.00 Franchise fees are to be collected by the utility and submitted to the City on a quarterly basis. The utility may surcharge the fees to its customers as permitted by law. The City will review the ordinance by June 20, 2008 to determine whether to continue, terminate or modify the fee. Copies of the ordinance are available for public inspection in the Public Works Department during normal business hours or upon request by calling Mike Eastling, Director of Public Works at 612-861-9792. Adopted by the City Council of the City of Richfield, Minnesota this 16th day of December, 2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk 1216 Gas Franchise Fees pity o~ Richfield Franchise Fee Revenue Gas (Reliant/Minnegasco) T j't^,~ ^f ~S`.rJU:l?' F~~ Acco~:r:ts l~jlnnthly 1~nn~;~1 revenue revenue Residential $1.45 10,561 $15,313 $183,761 Commercial "A" $1.45 217 $ 315 $ 3,776 Comm./Ind. "B" $4.50 208 $ 936 $ 11,232 Comm./Ind. "C" $10.00 291 $ 2,910 $ 34,920 SVDF "A" $10.00 30 $ 300 $ 3,600 S VDF "B" $10.00 7 $ 70 $ 840 Total revenues from gas per year $238,129 Electricity (Xcel Energy) Residential $1.45 15,615 $22,642 $271,701 Sm. C&I non-dem. $4.50 884 $ 3,978 $ 47,736 Sm. C&I demand $10.00 304 $ 3,040 $ 36,480 Large C&I $65.00 63 $ 4,095 $ 49,140 Total revenues from Electricity per year $405,057 Grand total of revenues per year $643,1s6 PRESS RELEASE For immediate release Contact person: Mike Eastling, Director of Public Works, 612-861-9792 Richfield City Council to Consider Franchise Fees on December 16, 2003 The Richfield City Council has. scheduled a Public Hearing to consider establishing franchise fees as allowed by the Franchise Agreement that the City has with Excel Energy (electric) and CenterPoint Energy Minnegasco (gas). The City Council is planning to use franchise fees as part of the budget preparation process to address the reduction in Local Government Aid (LGA). LGA to cities was cut as part of the State's budget balancing last spring. The $1.45 a month charge for each single family residents for gas and electric meter (more for commercial) will generate an estimated $643,186 a year. The City Council is planning to dedicate the funds for three purposes: • Streets - $435,000 • Code compliance at City Hall - $192,000 • Trees - $6,186 The street funds will be used mostly for the annual repair and sealcoating of city J streets. The sealcoating ($235,000) of the residential streets has proven to be the best way to prolong the life of the streets. sealcoating is the process of spraying the street surface with asphalt oil and covering the oil with gravel. The streets are repaired ahead of the sealcoating at an annual cost of $100,000. Streets that are too deteriorated for sealcoating will be overlayed at an annual cost of $100,000. The code compliance issues at City Hall include the need for an elevator, new roof and some architectural upgrades. The dedicated tree fund will be used to replace additional boulevard trees. A number of boulevard trees were lost as a result of last summer's windstorm. The Public Hearing on the franchise fees is scheduled for 6:00 p.m., December 16, 2003 at City Hall, 6700 Portland Avenue South. Comments on the proposal can be made in writing to "Franchise Fee Comments", 6700 Portland Avenue S, Richfield, MN 55423 ; by email to FranchiseFee@ci.richfield.mn.us; or by voicemail at 612-861-9774. For more information or questions, call Randy Hughes at 612-861-9175. AGENDA ITEM # j REPORT # 300 STAFF REPORT CITY COUNCIL MEETING DECEMBER 16, 2003 REPORT PREPARED BY: ~~ EASTLING, DIRECTOR OF PUBLIC WORKS NAME TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Public hearing and consideration of second reading of the attached. Electric Franchise Fee Ordinance and consideration of resolution authorizing summary publication of ordinance amendment. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: Approve second reading of the attached Electric Franchise Fee Ordinance and the attached resolution authorizing the summary publication of the Ordinance Amendment. II. BACKGROUND At the November 7, 2003 City Council Budget Worksession, the City Council directed City staff to prepare Gas and Electric Franchise Fee Ordinances for City Council consideration. At the November 12, 2003 City Council meeting, the City Council scheduled a public hearing for December 16, 2003. The City Council wanted to provide a dedicated funding source for important infrastructure elements. The following annual expenditures were identified (amounts are based on a full year cycle): • $440,000 for Pavement Management • $200,000 for ADA/Building Code compliance • $6,000 for Forestry 1216 Electric Franchise Fees In addition to the publication of notice in the Richfield Sun Current on December 4, 2003, a press release was also published on December 11, 2003 in the Richfield Sun. III. BASIS OF RECOMMENDATION A. POLICY • Dedicated funds from franchise fees can provide a reliable funding source for the important infrastructure elements of streets, buildings and trees. B. CRITICAL ISSUES • Unstable State funding has resulted in cuts in the General Fund which has in turn led to deferred maintenance of city streets and extended delays in addressing ADA/building code issues at City Hall. C. FINANCIAL • The fee schedule included in the Electric Franchise Fee Ordinances can generate about $405,057 annually. D. LEGAL • The City Attorney drafted the Electric Franchise Fee Ordinance to be consistent with-the franchise ordinance. • The Public Hearing Notice met the legal publishing requirements. IV. ALTERNATIVE RECOMMENDATION(S~ • The City Council can change the amount of the fee. For every one percent ($.0145 for residential customers and similar for commercial) adjustment up or down, the total annual revenue changes $4,095. • The City Council could decline to approve this ordinance and look for other ways of funding. • The City Council could delay the public hearing to a later date, but that would delay collection start times by at least a month and maybe longer. V. ATTACHMENTS • Proposed Franchise Fee Ordinance • Resolution approving summary publication • Press Release • Franchise Fee Revenue VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None 1216 Electric Franchise Fees ORDINANCE NO. CITY OF RICHFIELD COUNTY OF HENNEPIN STATE OF MINNESOTA AN ORDINANCE IMPLEMENTING AN ELECTRIC FRANCHISE FEE ON NORTHERN STATES POWER D/B/A XCEL ENERGY FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OF RICHFIELD THE CITY OF RICHFIELD ORDAINS: SECTION 1. The City of Richfield Municipal Code Appendix E is hereby amended to include reference to the following Special Ordinance. Subdivision 1. Purpose. The Richfield City Council has determined that it is in the best interest of the City to impose a franchise fee on those public utility companies that provide natural gas and electric services within the City of Richfield. (a) Pursuant to City Ordinance No. 1987-27, a Franchise Agreement between the City and Northern States Power Company, d/b/a Xcel Energy, the City has the right to impose a franchise fee on Xcel Energy in amount and fee design as authorized in Section 9.1 of the Xcel Energy Franchise and in the fee schedule attached hereto as Exhibit A. Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on Xcel Energy under its Electric Franchise in accordance with the schedule attached hereto and made a part of this ordinance, commencing with the Xcel Energy's February, 2004 billing month. Subd. 3. Payment and Fee Desian. The franchise fee- shall be payable to the City in accordance with the terms set forth in Section 9.3 of the Franchise. This fee is an account-based .fee on each premise and not ameter-based fee. In the event that an entity covered by this ordinance has more than one meter at a single premise, but only one account, only one fee shall be assessed to that account. If a premise has two or more meters being billed at different rates, the Company may have an account for each rate classification, which will result in more than one franchise fee assessment for electric service to that premise. If the Company combines the rate classifications into a single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate classification for energy delivered to that premise. In the event any entities covered by this ordinance have more than one premise, each premise (address) shall be subject to the appropriate fee. In the event a question arises as to the proper fee amount for any premise, the Company's manner of billing for energy used at all similar premises in the city will control. Subd. 4. Surcharge. The. City recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that Xcel Energy wilt surcharge its customers in the City the amount of the fee. JMS-240033v1 RC145-326 Subd. 5. Record Support- for Payment. Xcel Energy shall make each payment when due and, if requested by the City, shall provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectibles, refunds or error corrections. Subd. 6. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with Section 2.5 the Franchise Agreement. Subd. 7. Effective Date of Franchise Fee. Notwithstanding the effective date of this ordinance and notwithstanding any contrary provisions in the Franchise, the effective date of the fee collected under Subdivision 2 of this ordinance is the later of ten (10) days after the publication or after the sending of written notice enclosing a copy of this adopted ordinance upon Xcel Energy by certified mail. It has been agreed to in advance by Xcel Energy's representatives that Xcel Energy will abide by the provisions of this Subdivision 7, provided fee collection will not commence before the later of the Company billing month set forth in subdivision 2 or the first billing month commencing 20 days after the foregoing effective date of the franchise fee. Subd. 8. Fee Review. The City Council shall begin a review of this Ordinance by June 30, 2008 to determine whether to continue, terminate or modify the fee. If the Council deems it to be iri the City's best interest to continue the fee in its current form, no Council action is necessary. If the Council deems it to be in the City's best interest to terminate or modify the fee, the Council shall give Xcel at least. sixty (60) days written notice prior to .the proposed change. Subject to the. City's. rights under Minnesota law, the City shall. obtain the consent of Xcel to any proposed increase in the fee but may unilaterally decrease or terminate the fee. SECTION 2. This ordinance takes effect as provided herein. Read by the City Council of the City of Richfield this day of , 2003. Read and passed by the City Council of the City of Richfield this day of .2003. Mayor City Clerk/Administrator APPROVED AS TO FORM: City Administrator JMS-240033v1 RC145-326 EXH/BI T A XCEL ENERGY ELECTRIC FRANCHISE FEE SCHEDULE Class Fee Per Meter Residential $1.45 Sm C & I -Non-Dem $4.50 Sm C & I -Demand $10.00 Large C & I $65.00 Franchise fees are to be collected by the utility in the amounts set forth in the above schedule, and submitted to the City on a quarterly basis as follows: January -March collections due by April 30. April -June collections due by July 31. July -September collections due by October 31. October -December collections due by January 31. JMS-240033v1 RC145-326 RESOLUTION NO. RESOLUTION APPROVING SUMMARY PUBLICATION OF AN ORDINANCE AMENDMENT TO APPENDIX E OF THE RICHFIELD CITY CODE WHICH PERTAINS TO THE FRANCHISE ORDINANCE. WHEREAS, The City of Richfield has adopted the above referenced ordinance, amending Appendix E to the Richfield City Code, and WHEREAS, the verbatim text of the amendment is cumbersome, and the expense of publication of the complete text is not justified, NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, that the following summary is hereby approved for official publication: SUMMARY PUBLICATION BILL NO. AN ORDINANCE IMPLEMENTING AN ELECTRIC FRANCHISE FEE ON NORTHERN STATES POWER D/B/A XCEL ENERGY FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OF RICHFIELD The purpose of this ordinance amendment is to impose a franchise fee on Northern States Power d/b/a Xcel Energy under its Electric Franchise Agreement commencing with the Xcel Energy's February, 2004 billing month. FEE SCHEDULE Class Fee Per Meter Residential $1.45 __ Sm C & I -Non-Dem $4.50 Sm C & I -Demand $10.00 Large C & I $65.00 Franchise fees are to be collected by the utility and submitted to the City on a quarterly basis. The utility may surcharge the fees to its customers as permitted by law. The City will review the ordinance by June 20, 2008 to determine whether to continue, terminate or modify the fee. Copies of the ordinance are available for public inspection in the Public Works Department during normal business hours or upon request by calling Mike Eastling, Director of Public Works at 612-861-9792. Adopted by the City Council of the City of Richfield, Minnesota this 16th day of December, 2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk 1216 Electric Franchise Fees pity of Richfield Franchise Fee Revenue Gas (Reliant/Minnegasco) Type ofaccoun± FPP A~cc..r:}~ 1~llnnthlJ, Qnniual revenue revenue Residential $1.45 10,561 $15,313 $183,761 Commercial "A" $1.45 217 $ 315 $ 3,776 Comm./Ind. "B" $4.50 208 $ 936 $ 11,232 Comm./Ind. "C" $10.00 291 $ 2,910 $ 34,920 SVDF "A" $10.00 30 $ 300 $ 3,600 S VDF "B" $10.00 7 $ 70 $ 840 Total revenues from gas per year $238,129 Electricity (Xcel Energy) Residential $1.45 15,615. $22,642 $271,701 Sm. C&I non-dem. $4.50 884 $ 3,978 $ 47,736 Sm. C&I demand $10.00 304 $ 3,040 $ 36,480 Large C&I $65.00 63 $ 4,095 $ 49,140 Total revenues from Electricity per year $405 057 Grand total of revenues per year $643 186 PRESS RELEASE For immediate release Contact person: Mike Eastling, Director of Public Works, 612-861-9792 Richfield City Council to Consider Franchise Fees on December 16, 2003 The Richfield City Council has scheduled a Public Hearing to consider establishing franchise fees as allowed by the Franchise Agreement that the City has with Excel Energy (electric) and CenterPoint Energy Minnegasco (gas). The City Council is planning to use franchise fees as part of the budget preparation process to address the reduction in Local Government Aid (LGA). LGA to cities was cut as part of the State's budget balancing last spring. The $1.45 a month charge for each single family residents for gas and electric meter (more for commercial) will generate an estimated $643,186 a year. The City Council is planning to dedicate the funds for three purposes: • Streets - $435,000 • Code compliance at City Hall - $192,000 • Trees - $6,186 The street funds will be used mostly for the annual repair and sealcoating of city streets. The sealcoating ($235,000) of the residential streets has .proven to be the best way to prolong the life of the streets. sealcoating is the process of spraying the street surface with asphalt oil and covering the. oil with gravel. The streets are repaired ahead of the sealcoating at an annual cost of $100,000. Streets that are too. deteriorated for sealcoating will be overlayed at an annual cost of $100,000. The code compliance issues at City Hall include the need for an elevator, new roof and some architectural upgrades. The dedicated tree fund will be used to replace additional boulevard trees. A number of boulevard trees were lost as a result of last summer's windstorm. The Public Hearing on the franchise fees is scheduled for 6:00 p.m., December 16, 2003 at City Hall, 6700 Portland Avenue South. Comments on the proposal can be made in writing to "Franchise Fee Comments", 6700 Portland Avenue S, Richfield, MN 55423 ; by email to FranchiseFee@ci.richfield.mn.us; or by voicemail at 612-861-9774. For more information or questions, call Randy Hughes at 612-861-9175.