FROM:
Administrative Services
SUBJECT:
Title
Proposed Business License Penalty Fee Waiver for The Previti Group. End
RECOMMENDATION:
Recommendation
Consider proposal to waive delinquency fee
End
COUNCIL GOALS:
• Operate in a businesslike manner by ensuring that the public debate is based on accurate information.
• Operate in a businesslike manner by correcting problems immediately.
DISCUSSION:
In compliance with the City’s Business License program the City mails annual Business License renewal notifications via the US Postal Service to the mailing address on file as provided by the business.
On May 29, 2025, the City sent a Business License renewal letter to The Previti Group (Business), at the Fontana business address on file, via the US Postal Service, as their business license was due to expire June 30, 2025. This letter was returned to the City and staff followed up via email to the email address on file on June 12, 2025, also provided by the Business. The business tax amount, as calculated by the Business, per City Business License tax calculation formula was $25,715.33.
On September 10, 2025, after identifying an alternate address originally provided by the Business, a second renewal letter was sent to an alternate address in Ontario, CA, also through the US Postal Service.
City renewal letters are a courtesy and due to the City of Fontana’s online Business License portal a business can renew their Business License at any time they become aware the current license is expiring and needs to be renewed.
Per Fontana Municipal Code section 15-45. - Delinquency, the City shall add a penalty of 20% of the full tax amount due for each month the renewal payment is delinquent, up to a maximum penalty of 100%. Renewal letters, as well as the online Business License portal, note the penalty rate of 20% per month. The Business License for the Business expired on June 30, 2025. On August 1, 2025, penalty fees in the amount of 20% began to accrue.
On December 31, 2025, a representative of the business began creating an account in the City’s online Business License portal, presumably to pay the Business License fee. By this date the total late penalty had reached 100% of the actual Business License tax of $25,715.33, as five months had passed since the expiration, making the total now due $51,449.66.
Once communication was established with the Business, they stated there were errors or issues with the addresses on file, however after being provided an opportunity to update or correct any address errors, no changes were made to mailing addresses provided by the Business.
The Business is now requesting a penalty fee waiver. Per Fontana Municipal Code, staff does not have authority to waive penalty fees for late payment on business licenses.
The total amount of the penalty fee requested to be waived is $25,715.33.
FISCAL IMPACT:
Reduction in late penalty revenue in the amount of $25,715.33
MOTION:
Approve request to waive delinquency fee