5.48.080 - Gross revenue license fees—Schedule of fees.

(a)

Each licensee, licensed pursuant to the provisions of this chapter, shall pay to the city a monthly license fee of ten thousand dollars plus an amount based upon the total monthly gross revenue of the card game business so licensed, according to the following schedule:

Monthly Gross Card Room Revenue Monthly Fee Based on the Following

Percentages of Monthly Card Room Revenue

First $0.00 to $1,600,000 10.0%

Next $1,600,001 to 8,500,000 13.2%

Next $8,500,001 to 12,000,000 13.8%

Next $12,000,001 to 16,000,000 14.4%

Over $16,000,000 13.2%

In case of a new application, a deposit for the first quarter in the amount of thirty thousand dollars shall be paid in advance to the city when the license is issued. This sum shall be credited at the rate of ten thousand dollars per month against the payments due under Section 5.48.100. The advance license fees shall become the absolute property of the city and shall not be refunded to any such applicant when licenses are issued, nor shall such fees be prorated in any manner whatsoever, and in the event of the cessation of such business, whether voluntary or involuntary, no refund of the advance fees shall be made.

(b)

Licensee shall, at its sole cost and expense, for the duration of the license, carry or maintain business interruption insurance, if commercially available at a reasonable cost, and provide proof thereof that is acceptable to the city of its procurement of such insurance. The city of Commerce shall be named as an additional insured or as an additional loss payee.

In the event that a licensee, licensed pursuant to the provisions of this chapter, suffers an abrupt or sudden interruption in its operations caused by an occurrence covered by the licensee's business interruption insurance, such as earthquake, fire, landslide or other insurable occurrence, the licensee shall: (1)

Continue to pay to the city the monthly license fee of ten thousand dollars; and

(2)

Shall pay an additional monthly license fee calculated as the average monthly gross revenue fee paid to the city by the licensee during the preceding twelve months of operation.

The additional monthly license fee referenced above shall be payable only if the occurrence causing the interruption in card club operations is a covered risk under the licensee's business interruption insurance policy, and shall be payable exclusively out of payments made from such insurance policy, subject to its terms and conditions.

The additional monthly license fee payments shall continue until such time as the licensee's benefit under such insurance ceases or expires.

(Ord. No. 804, § 2, 12-13-2022)