Swim Club Dissolves, Returns over $22,000 to City

The Piedmont Swim Club and the City of Piedmont Recreation Department jointly issued the following press release Dec. 30:

The Piedmont Swim Club’s board of directors met on November 28 to formally dissolve the nonprofit corporation effective November 30. The Piedmont Swim Club had funded and operated Piedmont’s pool from 1964 until the City’s takeover on July 1, 2011. The membership had voted in May 2011 to authorize the board to dissolve the club after its business was concluded.

Under the terms of the April 22, 2011 transition agreement between the Swim Club and the City of Piedmont, the Swim Club returned over $22,000 to the City. Swim Club president Tim Rood presented the check to Piedmont Recreation Director Mark Delventhal on Nov. 30. This sum represented the remaining balance of the $40,000 the City had agreed to provide the Swim Club in compensation for its managers’ time during the transition to City management and for the Swim Club’s furnishings and equipment. A condition of the agreement was that the Swim Club returns any surplus funds to the City after it had paid all its bills, including year-end and going out of business expenses.

The Swim Club had estimated the value of its managers’ time working on the transition at $15,000 and the fair market value of its lane markers, pool covers, life safety devices, furnishings and other non-fixed equipment, much of which was still under warranty, at $25,000. Under the terms of the lease, these items were the property of the Swim Club. If the Swim Club had sold this equipment to another pool after the end of the lease, the City would have had to purchase all new equipment at a cost of at least $50,000, but the Swim Club would have faced a revenue shortfall while still in operation and would have had to sell the equipment without any staff on the payroll. The agreement provided the Swim Club with the revenue it needed to maintain full hours while still in operation.

 “This agreement was a win-win for the City and the Swim Club,” said outgoing Swim Club president Tim Rood. “The Swim Club had no dues revenues coming in this spring, uncertain lesson revenues, and limited funds on hand. Without this agreement, we would have had to cut back hours to stay open through June with the cash on hand, and any cutbacks in service naturally concerned our members greatly,” Rood continued.

Piedmont Recreation Director Mark Delventhal agreed.  “This arrangement between the city and the club was beneficial to both parties, it made financial sense, and it ended up serving the swimming clientele well.  I am proud of the cooperation that occurred between the Piedmont Swim Club and the Recreation Department during this transition period.”

The Swim Club’s final compiled financial statement is available to members who were in good standing as of June 30, 2011 by request to Treasurer Martha Gilbertson at m.gilbertson@comcast.net.