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G. Such Resolution is hereby rescinded and the Gold Seal Incentive Program is included in the terms of this ordinance. H. The funding for the Gold Seal Incentive Program is $110,000.00, which will provide for 4,782 units to receive exemptions from the 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 based on the rental program fee study. According to 2015 records an inventory of 32,165 rental units are licensed for inspection. Subtracting out the 4,782 units qualified for the Gold Seal Incentive Program, 27,383 units are accountable for the $23.00 per unit annual fee, thus generating an annual revenue of $629,809.00. J. It is anticipated that the deficit for the PREP will be $288,813.00 for the PREP based on the estimated $918,622.00 in expenditures and $629,809.00 in revenues. K. 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 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 funds shall be expended solely for the proactive rental enforcement program and shall not be used for any other purpose. All interest income earned by the moneys in the proactive rental enforcement program account shall also be expended only for the proactive rental enforcement program. Should such monies be invested in combination with other funds and accounts, then the pro rata share of the interest earned by all such monies that is Ordinance No. NS -2898 Page 2 of 22