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Pg. 23 CHAPTER IV — COST RECOVERY RECOMMENDATIONS <br />Option 2: Petition Fees Separate from the Rental Registry Fee <br />Option 3: No Petition Fees <br /># of Units/ <br />Fee Title <br />Suggested Fee <br />Revenues <br />Petitions <br />Annual Registration <br />$86.12 per unit - <br />32,450 Units <br />$2,794,654 <br />Fair Return Petition <br />$0 per petition <br />................................................................................................ <br />4 Petitions <br />$0 <br />Capital Improvement Petition <br />$0 per petition <br />4 Petitions <br />$0 <br />Tenant Petition <br />$0 per petition = <br />............................. <br />958 Petitions <br />= $0 <br />$2,794,654 <br />Total: <br />-$3,245,000 <br />-$450,346 <br />Under Option 3, the removal of petition fees results in an annual operating deficit of up to <br />(-$450,346) to pay for all costs associated with the Rent Stabilization and Just Cause Eviction <br />Ordinance. As a result, the City's General Fund would have to annually subsidize the petition fees <br />with up to $450,346 in order to ensure the Rent Stabilization Program can process Fair Return <br />Petitions, Capital Improvement Petitions and Tenant Petitions. Fair Return Petitions are a <br />constitutional right for landlords. Meanwhile, Capital Improvement Petitions and Tenant Petitions <br />are available options for landlords and tenants in the Ordinance. <br />Option 1 is recommended to the City of Santa Ana because it provides a simple streamlined fee for <br />program participants that includes all of the costs to implement, administer, monitor, support, and <br />enforce the provisions of the Ordinance, while supporting cost recovery and no impact to the City's <br />General Fund. Option 1 also adheres to the principles approved by City Council for the Rental <br />Registry Fee to be as low and lean as possible to not create an unnecessary burden on tenants and <br />landlords; to blend a hybrid of services between consultants and City staff; and builds upon other <br />existing services across the City to administer the Ordinance. <br />OTHER CONSIDERATIONS <br />In considering all options related to the Rental Registry Fee, we also analyzed the number of rental <br />units that would be only partially covered by the Rent Stabilization and Just Cause Eviction <br />CoCity • • 1 <br />