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Z. In an effort to continue monitoring the results of the program, PREP will continue for another four-year period, commencing on January 1, 2008 and will sunset on December 31, 2011, to allow for review of the program Section 2. In accordance with the California Environmental Quality Act, the recommended action is categorically exempt from further review per section 15321, Class 21, as the project involves an enforcement action by a regulatory agency to allow the continuation of an inspection program. A Categorical Exemption for Environmental Review No. 2007-123 will be filed for this project. Section 3. Section 21-120r.1 of the Santa Ana Municipal Code is hereby amended, which amendment only extends the sunset clause currently in said section from 2008 to 2011, to read in full as follows: Sec. 21-120r.1. Residential Rental Surcharge. (a) Except as otherwise provided in subsection (b) of this section, the business license tax for residential property rental and residential apartment rental shall consist of the amount set forth in subsections (2) and (3) of section 21-120r plus an annual surcharge of seventeen dollars and fifty cents ($17.50) per each property rental unit or each apartment rental unit. The surcharge hereby established shall be due and payable and shall be paid at the same time and in the same manner that the amount due under section 21-120r is due and payable. No business license shall be issued unless the surcharge is paid. Penalties and interest shall be assessed upon the total amount due and unpaid at the rate specified in this chapter until such time as both the amount due under section 21-120r and the surcharge due under this section are paid in full. All provisions for the enforcement, collection and recovery of unpaid business license taxes shall likewise apply to the enforcement, collection and recovery of any unpaid surcharge. Notwithstanding any provision of this chapter to the contrary, the amount of the surcharge shall not change except by amendment of this section. This section shall expire on, and be of no further force or effect after December 31,2011. (b) The city council may, by resolution, establish a program whereby particular residential properties or residential apartments, licensed pursuant to this chapter, may be certified as having met standards of excellence in property maintenance. In such event, the executive director of the planning and building agency shall be responsible for the implementation of that program. Owners of property certified pursuant to that program shall be exempt from the payment of the surcharge specified in subsection (a) of this section for the three (3) tax years next succeeding the time of such certification. The executive director of the planning and building agency shall provide the executive director of the finance and management services agency with listings of licensed properties certified under this program, which shall be periodically updated to reflect changes. The city council may provide for such financial limitations on the Ordinance No. NS-2757 Page4of6