Earlier this month, it was revealed three adults and three young girls had been renting a home in Selwyn St, owned by the Otago Regional Council, unaware the property was contaminated with lead.
The property was being managed by Harveys and it was revealed the company had not passed on a regional council instruction that its tenants had to be told about the contamination.
Yesterday, council chief executive Graeme Martin raised the issue at a council meeting, explaining to councillors further testing was being done on the site to ascertain whether the contamination exceeded the "strip" of land on the property where it was known to be.
"Low-level lead contamination is not uncommon."
The property had been bought as part of land acquisitions for the Leith-Lindsay flood protection scheme and it was planned to remedy the site as part of the work, he said.
Cr Bryan Scott said he was "upset" about the situation and struggled with what had happened, especially as it involved a family with young children.
He asked Mr Martin what processes were being put in place to stop a similar situation arising again.
The council needed to set an example, a standard of how people should act in the community, he said.
Mr Martin said it was an issue staff were working through but it was a difficult one.
In this situation, the family involved was not the tenant who signed the agreement.
Cr Michael Deaker was concerned the property had been rented at all.
Mr Martin said he fully supported council staff's decision to rent out the property, as the contamination level was considered to be "minor", tenants were to be told of the situation, and any tenancies were expected to be short term.
