Brief

The City Attorney initiated a report (R26-0033) evaluating the business license tax assessment for Golden Entropy Inc. The matter was referred to the Budget and Finance Committee in mid-January, approved there on February 17, and brought to full Council on February 25, 2026, where it passed 13-0-2. The file is now closed following final Council action on March 9, 2026.

Full summary

Golden Entropy Marketing (doing business as Golden Entropy Inc.) was audited by the City for business license tax compliance covering tax years 2018 through 2023. The audit resulted in a penalty assessment totaling $162,589.51. The company subsequently requested that the City waive the full penalty amount as part of a settlement of the matter. The City Attorney's Office, under City Attorney Hydee Feldstein Soto, initiated the file in January 2026 and recommended that the Council convene in closed session to receive legal advice on the pending matter, as permitted under California Government Code Section 54956.9(d)(4). The substance of the settlement terms — the penalty waiver — was not publicly disclosed until the Council voted on the motion. The Budget and Finance Committee took up the matter on February 17, 2026, deliberating in closed session and unanimously recommending approval. Councilmembers Yaroslavsky, Blumenfield, Hutt, McOsker, and Hernandez all voted yes in committee. Yaroslavsky and Blumenfield then brought the motion to the full Council on February 25, 2026, where it passed 13-0-2, with two councilmembers absent or not voting. The action was subject to reconsideration under Council Rule 51, a standard provision giving the Council a window to revisit adopted items. The settlement approves the waiver of all $162,589.51 in penalties assessed against Golden Entropy Marketing, resolving the audit dispute. Final Council action was recorded on March 9, 2026, closing the file. The underlying tax liability — as distinct from the penalties — is not addressed in the public record of this file.

Activity (7)

• 2026-03-09 Council action final.
• 2026-02-25 Council adopted item, subject to reconsideration, pursuant to Council Rule 51.
• 2026-02-20 City Clerk scheduled item for Council on February 25, 2026.
• 2026-02-17 Budget and Finance Committee approved the item in Open Session.
• 2026-02-13 Budget and Finance Committee scheduled item for committee meeting on February 17, 2026.
• 2026-01-13 City Attorney document(s) referred to Budget and Finance Committee.
• 2026-01-09 Document submitted by City Attorney, dated January 9, 2026.

Documents (4)

• 2026-03-09 Mayor Concurrence/Council Action · other
• 2026-02-25 Motion (Yaroslavsky - Blumenfield) · motion
• 2026-02-25 Speaker Card(s) · speaker_card
• 2026-01-09 Report from City Attorney · report