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IS 3.31.16 G. On June 20, 1994, the City Council adopted Resolution No. 94 -026 (Resolution) which approved and adopted the "Gold Sea! Incentive Program" whereby particular residential properties or residential apartments may be certified as having met standards of excellence in property maintenance and as certified, would be exempted from payment of the residential rental surcharge fee for a three -year period. H. Such Resolution is hereby rescinded and the Gold Seal Incentive Program is included in the terms of this ordinance. The funding for the Gold Seal Incentive Program is $110,000.00, which currently provides for 4,400 units to receive exemptions from the existing annual fee. The number of units that can be approved to participate in the Gold Seal Incentive Program will fluctuate with the adjustment of the annual fee in line with the consumer price index. J. According to 2015 records an inventory of 32,165 rental units are licensed for inspection. Subtracting out the 4,400 units qualified for the Gold Seal Incentive Program, 27,765 units are accountable for the $25.00 per unit annual fee, thus generating a combined annual revenue of $694,125.00. K. It is anticipated that the deficit for the PREP will be $335,557.00 for the PREP based on the estimated $918,622.00 in expenditures and $583,065.00 in revenues. City Council finds that continuation of the Proactive Rental Enforcement Program is essential to the neighborhoods in Santa Ana to provide assurance that the rental housing will not be allowed to revert to the condition which led to the initial concerns for the original implementation of the inspection 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 for an inspection program. A Categorical Exemption for Environmental Review No. ER -2015- 96 will be filed for this project. Section 3. Santa Ana Municipal Code Section 8 -47 is hereby amended to read as follows: Sec. 8 -47. Proactive rental enforcement program fee. All funds received pursuant to the provisions of section 2' -1400 l ref- chapter -21 of Article X. Division 2 of Chapter 8 of this Code shall be deposited in a separate account and identified with a separate unique expenditure activity number. All such Ordinance No. NS -XXXX Page 2 of 16 75B -14