This sounds like a combustible team situation. Please, whatever you do, don't give this guy a big check for next year. Pay him month to month. six, eight months from now this group of kids could look very very different, and you don't want to be the one locked into a bad situation.
Although it's possible this is a good coach going through a sticky growth moment, your post raises a couple of red flags, so I'd proceed with caution. Inform yourself as to what you want out of club soccer and a club soccer coach. It's a hard slog to get good information here, but if you read enough threads you'll start to understand the club soccer environment. There are plenty of threads from newbies looking for advice, so that'd be a place to start.
This club seems like a shoestring operation. I'd find out right away if the guy is actually pulling permits on fields. If not, he's ripping you off and putting himself and your kids at risk. His Cal South insurance isn't valid. Next, is there a director of coaches or technical director at the club? I'd ask them what the club philosophy is about playing time. In general, get to know the DOC. On the other hand, those guys are usually smooth at placating parents, so be skeptical and firm.
remember, club soccer is run by people who love soccer, but don't necessarily know the first thing about running an organization or how to treat people. The more you engage, the better your kids' experience will be.
If the coach is still giving certain players minutes, in order to keep their parents happy ($$$), do we stick around for yet another losing season?
I'd say no. not because you're losing, but because he's ripping the families off and it won't be much fun. Anyway, the team will blow up in a year or two. In general, you want to look for a team where the gap between the best and the worst player is smallest. That way the coach can teach to the same level, everyone will have shared interests, and playing time can be fair.
If I were you, I'd be quietly checking out other clubs nearby, or at the very least talking to families about their experience. At this stage in their development, I'd be looking for a coach that emphasizes technical skills, but MT's advice is more important.
Finally, if the CC in your name refers to Culver City, I'd read the current thread on the westside merger.