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ARDEN HILLS CITY COUNCIL WORK SESSION—OCTOBER 11, 2010 8 B. 2011 Pavement Management Program Discussion Public Works Director Maurer presented the City Council with information on the 2011 Pavement Management Program. He asked for feedback on which projects the Council would like to see completed in 2011. Staff would need further comment on the assessment rate for the R-3 zoning district. Councilmember Holden asked how the R-3 zoning district road work would be assessed. Public Works Director Maurer recommended the City assess each unit individually and not the association. This would protect the City in case the association was to not pay. Mayor Harpstead suggested staff model the rates at the current policy, again at +10%, or -10% and provide this information to Council. Councilmember McClung indicated the density in the R-3 district was higher even if there were fewer trips per unit. Mayor Harpstead requested staff speak with the Financial Planning and Analysis Committee on this issue further, complete a pro forma of what the impact would be at different assessment rates and report back to the Council. Councilmember Holden disagreed with this suggestion. Councilmember Grant questioned if the townhomes were considered to be their own neighborhood. Mayor Harpstead indicated townhomes have been blended in with neighborhoods in the past. Public Works Director Maurer stated townhome units could end up paying 80-90% of the cost of the road in their neighborhood while single family units could pay 30%. The overall average would end up being 50%. Councilmember Holden explained the Council may then have to redefine each neighborhood. Mayor Harpstead commented that R-3 neighborhoods were different than R-2 or R-1 residential areas. He felt it made sense for the Council to establish a separate policy for R-3 and R-4. This would address future pavement programs. Councilmember Holmes questioned if R-3 were separated, if this would give them a benefit. Public Works Director Maurer explained he was proposing to use a ratio after reading through the assessment policy and reviewing past precedence. He indicated he would be bringing back a draft feasibility study on October 25th where the Council could discuss the numbers in more detail. Mayor Harpstead requested two analyses be completed, one using the 50% policy and the other being the blended bid schedule with the .60 residential equivalent unit for each townhouse unit.