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F. In order to correlate the amount of the fee with the actual cost of the <br />services provided, the fee shall be adjusted annually in accordance with <br />the consumer price index as published by the United States Department of <br />Labor for the Los Angeles-Riverside-Orange County (formerly Los <br />Angeles-Long Beach-Anaheim) metropolitan area, as detailed in section <br />21-121 of the Municipal Code. <br />G. A 2011 fee study reported the total projected expenditures for the PREP <br />would amount to an estimated $614,400.00, which includes an estimated <br />$422,250.00 for required staff and an estimated $192,150.00 in <br />operational costs. <br />H. 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 />The funding for the Gold Seal Incentive Program is $110,000.00, which <br />currently provides for 5,640 units to receive exemptions from the existing <br />$19.50 per unit annual fee. The number of units that can be approved to <br />participate in the Gold Seal Incentive Program will fluctuate with the <br />adjustment of the annual fee in line with the consumer price index. <br />J. According to the 2011 fee study, records indicate an inventory of 32,277 <br />rental units licensed for inspection. Subtracting out the 5,640 units <br />qualified for the Gold Seal Incentive Program, 26,637 units were <br />accountable for the $19.50 per unit fee, thus generating annual revenue of <br />$519,422.00. <br />K. Thus, it is anticipated that the deficit for the PREP will be $94,978.00 for <br />the last year of the PREP term based on the estimated $614,400.00 in <br />expenditures and $519,422.00 in revenues. <br />L. 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 />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-2011- <br />54 will be filed for this project. <br />Ordinance No. NS- <br />11 B-2 Page 2 of 5