HomeMy WebLinkAboutNS-2527 - Amending Section 21-120r.l(a) of Santa Ana Municipal Code to Extend the Fee Charged to Finance the City's Proactive Rental Enforcement ProgramORDINANCE NO. NS-2527
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA AMENDING SECTION 21-120r.l(a) OF
THE SANTA ANA MUNICIPAL CODE TO EXTEND THE
FEE CHARGED TO FINANCE THE CITY'S PROACTIVE
RENTAL ENFORCEMENT PROGRAM
THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS
FOLLOWS:
Section 1. The City Council hereby finds, determines and declares as follows:
In June of 1990 the Mayor's Task Force on Neighborhood Standards and
Preservation recommended the implementation of a mandatory inspection
program for all residential rental properties in the City of Santa Aha.
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On July 19, 1992, representatives from the Planning and Building Agency
and various apartment associations met and reached agreement on the
Proposed Proactive Residential Enforcement Program.
The purpose of the proposed program was to promote public health,
safety and welfare through a proactive program of periodic and systematic
inspections of all residential rental properties in the City of Santa Aha.
The spirit of the proposed program was to promote environments in which
unsanitary conditions and life safety hazards are reduced for occupants of
residential rental properties and inspection would ensure that building
systems providing water, sewage disposal, heating and electricity are safe
and operational and encourage the residential rental industry to affect
repairs and conduct preventative building maintenance before deteriorated
conditions upon rental property reach gross proportions.
The adoption of the Proactive Rental .Enforcement Program necessitated
increased staffing to focus enforcement efforts exclusively on the identified
proactive rental inspection areas.
The additional staff positions and operational costs were proposed to be
borne through the adoption of an annual inspection fee assessed to
members of the residential rental industry who voluntarily chose to engage
in the business of residential rentals.
All fees assessed Under proposed program bear a direct correlation
between the amount of the fee and th~ actual cost of the services
provided. Therefore, all fees charged under the Proactive Rental
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Enforcement Program are used only to pay for the administration,
enforcement, implementation and other services specifically related to
PREP.
The $17.50 per unit annual fee was proposed to cover only the cost of the
additional staff and operational costs associated with the Proactive Rental
Enforcement Program and would be used to fund only the cost of the
program and not on-going complaint-driven code enforcement activities.
In light of the fact that the Planning and Building Agency did not have the
necessary resources for the collection of the proposed inspection fee and
for the ease and convenience to the residential rental business industry,
the $17.50 surcharge fee was proposed to be collected with the business
license tax already paid by persons operating such a business on an
annual basis.
The proposed program provided for initial inspections of all residential
rental properties, unless exempted, within designated proactive rental
housing code enforcement areas; as well as, reinspection of each property
after completion of the initial inspection period.
On August 3, 1992, in response to the r~commendation of the Mayoral
Task Force committee and to address the growing concerns of the
community regarding the deterioration of residential rental units in the City
as it related to issues of life, health and safety, the City Council of the City
of Santa Ana adopted an ordinance creating a $17.50 sumharge fee to
fund the cost of a residential rental inspection program.
The ordinance established a sunset date of December 31, 1999 for the
$17.50 fee to allow for a "seven year perio(J to undertake the program and
evaluate its impact", thus "providing a time frame sufficient to fully monitor
[its] results".
The ordinance also provided that any extension of the surcharge fee
beyond the sunset date would require further action by the City Council.
Continuation of Proactive Rental Enforcement Program is essential to the
neighborhoods in Santa Ana to provide assurances that the rental housing
will not be allowed to revert to the condition which led to the initial
concerns for the implementation of an inspection program in 1992.
Recurrent poor management by rental owners has become a challenge for
the Proactive Rental Enfomement Program inspectors in maintaining
improvements gained in the previous areas while conducting inspections
in the next neighborhood.
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In October 1999, the City council adopted Ordinance No. NS-2408 which
extended the PREP fee until December 31, 2003 based on a fee study.
This 1999 fee study reported that funding the cost of the required staff and
operational costs associated with the continuation of the Proactive Rental
Enforcement Program would amount to an estimated $608,410. The 2003
fee study for PREP reports an increase in required staff and operational
costs from $608,410 to $617,360.
The extension of the $17.50 inspection surcharge fee would only amount
to $498,750, thereby generating less than the amount necessary to
continue funding the cost of the program.
In 1999, business license records indicated an inventory of 28,500 rental
units generating $498,750 in revenue. Business license records for
calendar year 2003 now indicate an inventory of 27,231 rental units, 958
less than in 1999 which would, at $17.50 per unit, generate an annual
revenue of $476,542.
The decrease of 958 rental units since 1999 and increase in staffing and
operational costs creates a further widening of the deficit between
program costs and revenue generated by the Rental Inspection Fee.
To offset a percentage of the revenue versus costs deficit in the 1999
program budget, and given that inspection emphasis for the extension was
to be placed primarily on the exterior of the rental properties, PREP
staffing was reduced form six to five inspectors.
Staffing for the PREP program during th~ extension period of calendar
years 2004 through 2007 will be reduced from five to four.
In an effort to continue monitoring the results of the program, PREP will
continue for another four-year period, commencing on January 1, 2004
and will sunset on December 31,2007, to allow for review of the program
Section 2. The City Council has reviewed and consi, dered the information contained
in the initial study and the negative declaration, ER 2003-077, prepared with respect to this
Ordinance. The City Council has, as a result of its consideration and the evidence
presented at the hearings on this matter, determined that, as required pursuant to the
California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, a
Negative Declaration adequately addresses the expected environmental impacts of this
Ordinance. On the basis of this review, the City Council finds that there is no evidence
from which it can be faidy argued that the project will have a significant adverse effect on
the environment. The City Council hereby certifies and approves the negative declaration
and directs that the Notice of Determination be prepared and filed with the County Clerk of
the County of Orange in the manner required by law.
Ordinance No. NS-2527
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Pursuant to Title XlV, California Code of Regulations ("CCR") § 735.5(c)(1 ), the City
Council has determined that, after considering the record as a whole, there is no evidence
that the proposed project will have the potential for any adverse effect on wildlife resoumes
or the ecological habitat upon which wildlife resources depend. The proposed project
exists in an urban environment characterized by paved cbncrete, roadways, surrounding
buildings and human activity. Therefore, pursuant to Fish and Game Code § 711.2 and
Title XIV, CCR § 735.5(a)(3), the payment of Fish and Game Department filing fees is not
required in conjunction with 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 2003 to 2007, to read in full as follows (deleted te~t in strikeout and added text in
bold are included for tracking purposes only):
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 amou. nt 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, 2003 2007.
(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
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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
exemptions to be granted from the surcharge as the city council deems
appropriate.
Section 4. If any section, subsection, sentence, clause, phrase or portion of this
ordinance is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council of the City of Santa Ana hereby
declares that it would have adopted this ordinance and each section, subsection,
sentence, clause, phrase or portion thereof irrespective of the fact that anyone or more
sections, subsections, sentences, clauses, phrases, or portions be declared invalid or
unconstitutional.
Section 5. Neither the adoption of this ordinance nor the repeal hereby of any
ordinance shall in any manner affect the prosecution for violation of ordinances, which
violations were committed prior to the effective date hereof, nor be construed as
affecting any of the provisions of such ordinance relating] to the collection of any such
license or penalty or the penal provision applicable to any violation thereof, nor to affect
the validity of any bond or cash deposit in lieu thereof, required to be posted, filed or
deposited pursuant to any ordinance and all rights and obligations thereunder
appertaining shall continue in full force and effect.
ADOPTED this 19th day of May, 2003.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
Benjar}oi~ t~a~lfman
Chi~ssista'nt City Attorney
Ordinance No. NS-2527
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AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmembers:
Councilmembers:
Councilmembers:
Councilmembers:
Alvarezl Bistl
Solorio (7)
None (0)
None (0)
None (0)
Chdsty, Franklin, Garcia, Pulido,
CERTIFICATE OF ATTESTATION AND'ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify that the
attached Ordinance No. NS-2527 to be the original ordinance adopted by the City
Council of the City of Santa Ana on May 19, 2003, and that said ordinance was
published in accordance with the Charter of the City of Santa Ana. ~
Date:
...~ cler~of the Council City of Santa Ana
Ordinance No. NS-2527
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