Annually, on the first day of February, each year, every health club shall provide to the City’s Finance Department, the below described cash deposit, surety bond, letter of credit, or proof of exemption under Section 5-22.04. No certificate of occupancy shall be issued or be renewed for a health club, and no health club shall operate, do business, or sell memberships unless exempt under Section 5-22.04, or the applicant first provides the City with evidence of a cash deposit, surety bond, or letter of credit, meeting all of the following requirements:
(a) The cash deposit, bond, or letter of credit is in the amount of Seventy-five Thousand and no/100ths ($75,000.00) Dollars or five (5%) percent of the health club's previous fiscal year’s gross, whichever is greater;
(b) The deposit, bond, or irrevocable letter of credit shall be called upon or be enforceable upon the failure of the health club to provide to the City proof that full refunds of prepaid dues or fees to all customers of that club have been made within thirty (30) days of the date of the health club closure;
(c) The cash deposit, bond, or letter of credit shall provide for payment of administrative costs to the City of Thousand Oaks in an amount equal to ten (10%) percent of the total monies called upon for City processing any refund to health club consumers.
(§ 1, Ord. 1110-NS, eff. July 18, 1991)