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05-23-11 CC WS Mtg MinCITY OF SHOREWOOD CITY COUNCIL WORK SESSION MONDAY, MAY 23, 2011 MINUTES I. CONVENE CITY COUNCIL WORK SESSION 5755 COUNTRY CLU "B ROAD COUNCIL CHAMBERS 6:00 P.M. Mayor LizBe called the meeting to order at 6:31 P.M. A. Roll Call Present. Mayor Liz6e; Councilmembers Hotvet, Siakel, Woodruff and Zerby; Attorney Keane (arrived at 6:40 P.M.); Administrator Heck; Planning Director Nielsen; Director of Public Works Brown; Engineer Landini; and Building Official Pazandak Absent: None B. Review Agenda Zerby moved, Siakel seconded, approving the agenda as presented. Motion passed 5/0. 2. RENTAL HOUSING LICENSE PROGRAM Administrator Heck stated he asked Attorney Keane if the City can require a landlord to have at least the same level of water quality as the City's water system is required to have. He then stated when Keane arrives he will discuss what amendments need to be made to the City Code and enforcement criteria to make that happen. He went on to state that he had asked Building Official Pazandak to find out how many rental properties would be affected by implementing such a requirement. Building Official Pazandak stated it's hard to provide accurate rental property information because the number of properties fluctuates. The number of rental properties ranges from 50 to 90. Of those approximately 40 percent of them have private wells. Therefore, if there were 90 properties about 35 of them would be serviced with private well water. Pazandak explained the cost to test well water varies. The lowest cost he has found is $23.50 and that is for when people bring in their own tests. Most frequently the cost is $30 if people bring in their tests, and there are some that cost more than that. He stated Council would need to decide if it wants testing to be done by a third party or have a chain of custody testing. "Those types of tests cost $100 — $120. If the third parry doing the testing comes out for an additional test the cost is $60 — $80. He then stated he recommends either the third party testing system or the chain of custody testing system. He went on to state the amount and type of arsenic could both be issues. He explained the cost to treat water that goes to the kitchen can run up to $500 — $800 and the cost for a more complex system or systems that can treat higher levels of arsenic can be as much as $5,000. In response to a comment from Councilmember Woodruff, Building Official Pazandak explained that when a person picks up a test kit from the City and returns it to the City the water sample is sent out to a lab for testing. Director Brown explained the City's brochure on well water lists several agencies that are licensed by the Minnesota Department of Health (MDH). One of them is Twin City Water Clinic (TCWC) and it has become popular because of its close location; it's located in the City of St. Louis Park. TCWC prefers not to get the simple tests for analysis. It has test kits, including official bottles and instructions, for the taking samples. In the past, people have brought their samples to TCWC for testing. TCWC representatives have expressed their willingness to pickup samples taken with their kits and dropped of at City Hall and bring CITY OF SHOREWOOD WORK SESSION MEETING MINUTES May 23, 2011 Page 2 of 3 them to their lab for testing. They are also willing to make a short educational presentation at the Southshore Community Center. Staff supports accepting samples from residents for testing by TCWC. Administrator Heck stated Council needs to decide if it wants the City to be managing the testing for landlords. Or, should the City's responsibility be limited to verifying that the water was tested by a licensed tester and comparing the test results to the MDH's water standards for municipal water systems. if the standards are not met the rental license could be withheld until the water is treated to meet the standards. Director Brown explained that with the chain of custody approach a form is filled out that notes where the sample came from and who has had custody of the sample at each step of the way through the process. That's what helps make the cost more expensive. Councilmember Woodruff stated as part of the City's dog licensing process the dog's owner must provide the City with proof that the dog had been vaccinated by a licensed veterinarian and found to be free of rabies. He suggested a similar process could be used to ensure a landlord's well water meets the MDH's water standards. The water would have to have been tested by MDH licensed lab. Building Official Pazandak asked Councilmember Woodruff if he was suggesting the property owner could take their own samples and give them to a licensed lab. Councilmember Woodruff asked Attorney Keane if the City would in any way be liable if after it's accepted the test results it's later determined that the results came from a water sample that was not taken property. Keane responded if someone committed fraud in submitting a sample the City is not liable. Building Official Pazandak explained when a new private well is drilled there is a requirement that the water be tested. The well driller must test the flow and purge the well and send a sample out for testing. Each test is labeled to a unique well number. There is no requirement to have a private well tested after that. He commented that he has heard that some testing labs are recommending wells be tested annually. Attorney Keane stated he would not anticipate any liability issues accruing to the City because a property owner submitted a false sample. He then stated the City's regulations are adopted to protect the public; not a warranty to an individual. He went on to state the broader policy question is how to balance the burden to ensure water quality safety while not imposing too great of a cost on property owners for compliance. He expressed he thought there is a sweet spot the City can find for periodic sampling and testing, and for the actual mechanics of the process. Attorney Keane asked if well drillers make themselves available to test private well water. Building Official Pazandak responded that's not a normal procedure for a driller to go back to the property and test the water. Director Brown explained that landlords have to renew their rental license every three years or when there is a change of ownership. To have a property owner have their private well water tested using the chain of custody approach when a rental license is renewed every three years would have a financial burden of $60 — $70. Mayor Liz6e questioned why the City shouldn't require rental property well water be tested every year similar to the requirement for the City to have its municipal water tested annually. Director Brown stated from his vantage point he thought once every three years is adequate, noting significant changes in the level of arsenic in well water don't happen overnight. Councilmember Zerby stated he's comfortable with requiring the testing once every three years at the time of a rental license renewal. He then stated he does not think the City would be taking on more liability by CITY OF SHOREWOOD WORK SESSION MEETING MINUTES May 23, 2011 Page 3 of 3 instituting this requirement. He commented the City isn't liable if a licensed dog bites someone and is found to have rabies. Councilmember Woodruff stated he also agrees with a once every three years, or at time of ownership change, requirement for having a rental property owner with a private well submit documentation that the water was recently tested and that it meets the MDH's standards. He commented he also agrees that changes in arsenic levels happen slowly. Building Official Pazandak stated maybe a policy could be set up similar to the one for furnaces in rental units. The property owner has to provide a furnace service report that is no more than three years old at the time they apply for a rental license. Mayor Lizee asked Attorney Keane if other municipalities require private well water be tested for rental properties. Keane responded he has spoken with a few city attorneys about that. He noted that he had helped craft one of the original rental licensing ordinances which was for the City of St. Louis Park. St. Louis Park was one of the pioneers in developing rental license standards. He stated he has spoken with other cities that have well developed licensing ordinances. He noted the City is quite unique because it's one of the few urban municipalities in the area where there are private properties serviced by wells. Cities that tend to have licensing ordinances tend to be built up and have second and third generation properties due to age and obsolescence. They have contemporary standards to protect renters. Attorney Keane explained that the City Code incorporates by reference other statutory rules in its licensing standards. The City Code Chapter 104 General Penalty and Enforcement could be amended, via a straightforward text amendment, to reference the MDH's well water standards for municipal water. Mayor Liz& asked Council how it would like to proceed. Councilmember Siaket stated she supports including this requirement in the rental licensing program and she prefers the chain of custody approach for testing as well as a one -year water testing cycle. Councihnembers Hotvet and Zerby agreed with that, with Zerby commenting that he thought renters deserve to have water that meets the same standards as City water with regard to arsenic. Council directed Staff to draft amendments to the City's rental licensing requirements for future consideration by Council. Administrator Heck stated he will work with Attorney Keane on this and bring something back to Council by the end of ,Tune. 3. ADJOURN Siakel moved, Woodruff seconded, Adjourning the City Council Work Session of May 23, 2011, at 6:57 P.M. Motion passed 510. RESPECTFULLY SUBMITTED Christine Freeman, Recorder Christine Lizee, Mayor