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F. The additional staff positions and operational costs were proposed to be <br />borne through the adoption of an annual inspection fee assessed to <br />members of the residential rental industry who voluntarily chose to engage <br />in the business of residential rentals. <br />G. All fees assessed under proposed program bear a direct correlation <br />between the amount of the fee and the actual cost of the services <br />provided. Therefore, all fees charged under the Proactive Rental <br />Enforcement Program are used only to pay for the administration, <br />enforcement, implementation and other services specifically related to <br />PREP. <br />H. The $17.50 per unit annual fee was proposed to cover only the cost of the <br />additional staff and operational costs associated with the Proactive Rental <br />Enforcement Program and would be used to fund only the cost of the <br />program and not on-going complaint-driven code enforcement activities. <br />The Program's focus shifted in 1999 to include complaint-drive code <br />enforcement activities related to rental housing. <br />In light of the fact that the Planning and Building Agency did not have the <br />necessary resources for the collection of the proposed inspection fee and <br />for the ease and convenience to the residential rental business industry, <br />the $17.50 surcharge fee was proposed to be collected with the business <br />license tax already paid by persons operating such a business on an <br />annual basis. <br />J. The proposed program provided for initial inspections of all residential <br />rental properties, unless exempted, within designated proactive rental <br />housing code enforcement areas; as well as, reinspection of each property <br />after completion of the initial inspection period. <br />K. On August 3, 1992, in response to the recommendation of the Mayoral <br />Task Force committee and to address the growing concerns of the <br />community regarding the deterioration of residential rental units in the City <br />as it related to issues of life, health and safety, the City Council of the City <br />of Santa Ana adopted an ordinance creating a $17.50 surcharge fee to <br />fund the cost of a residential rental inspection program. <br />L. The ordinance established a sunset date of December 31, 1999 for the <br />$17.50 fee to allow fora "seven year period to undertake the program and <br />evaluate its impact", thus "providing a time frame sufficient to fully monitor <br />[its] results". <br />M. The ordinance also provided that any extension of the surcharge fee <br />beyond the sunset date would require further action by the City Council. <br />Ordinance No. NS- 2 <br />Page 2 of 6 <br />11 A-2 <br />