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<br /> <br /> <br /> <br /> <br /> <br /> F. A 2010 fee study reported the total projected expenditures for the PREP <br /> would amount to an estimated $675,000.00, which includes an estimated <br /> $386,856.00 for required staff and an estimated $288,144.00 in <br /> operational costs. <br /> <br /> G. On June 20, 1994, the City Council adopted Resolution No. 94-026 which <br /> approved and adopted the "Gold Seal Incentive Program" whereby <br /> particular residential properties or residential apartments may be certified <br /> as having met standards of excellence in property maintenance and as <br /> certified, would be exempted from payment of the residential rental <br /> surcharge fee for a three-year period; and <br /> H. The funding for the Gold Seal Incentive Program is $110,000.00, which <br /> currently provides for 6,285 units to receive exemptions from the existing <br /> $17.50 per unit annual fee. Based on the proposed fee increase to $19.50 <br /> per unit, up to 5,641 units can be approved to participate in the Gold Seal <br /> Incentive Program. <br /> <br /> 1. According to the 2010 fee study, records indicate an inventory of 31,227 <br /> rental units licensed for inspection. Subtracting out the 5,641 units <br /> qualified for the Gold Seal Incentive Program, 25,586 units will be <br /> accountable for the $19.50 per unit fee, thus generating annual revenue of <br /> $498,927.00. <br /> <br /> J. Even with <br /> an increase of the annual fee from <br /> $17.50 to $19.50 per unit, it <br /> is anticipated that the deficit for the PREP will be $176,073.00 a year for <br /> the remainder of the PREP term based on the estimated $675,000 in <br /> expenditures and $498,927.00 in revenues. <br /> K. Continuation of the Proactive Rental Enforcement Program is essential to <br /> the neighborhoods in Santa Ana to provide assurances that the rental <br /> housing will not be allowed to revert to the condition which led to the initial <br /> concerns for the implementation of an inspection program in 1992. <br /> <br /> Section 2. In accordance with the California Environmental Quality Act, the <br /> recommended action is categorically exempt from further review per section 15321, <br /> Class 21, as the project involves an enforcement action by a regulatory agency for an <br /> inspection program. A Categorical Exemption for Environmental Review No. ER-2010- <br /> 128 will be filed for this project. <br /> <br /> <br /> Section 3. Section 21-120r.1 of the Santa Ana Municipal Code is hereby <br /> amended to increase the residential rental surcharge and extend the sunset date. Said <br /> Section 21-120r.1 shall read in full as follows: <br /> <br /> <br /> <br /> Ordinance No. NS- <br /> 75A-10 Page 2 of 5 <br />