Menlo Park City Council voted to raise pool fees for nonresidents on April 15 but declined staff recommendations to increase fees for residents and subcontractors. The council also refused to let the operator bypass parts of its contract, despite warnings from city staff and the pool operator of rough waters ahead.
Effective April 16, the council raised pool fees for nonresidents by $7 to $9 per service. The decision followed a hearing on several changes to ease the financial troubles facing the city’s contracted pool operator, Menlo Swim and Sport, which is owned by Team Sheeper.
Menlo Swim and Sport, which operates the pools on behalf of the city, informed city staff that it is facing significant financial losses due to lower than expected attendance at the city’s new Belle Haven pool. Without changes, it is projected to lose $385,000 for the 2025 calendar year and city staff fears it would cause the pools to shut down.
Without fee increases by April 15, Team Sheeper CEO Tim Sheeper warned city officials that Menlo Swim and Sport could face imminent insolvency, which might result in “significant service interruptions.” That could potentially force closures at both Burgess Pool and Belle Haven Pool, a staff report noted.
City staff and Team Sheeper proposed raising fees for residents, nonresidents and subcontractors in addition to allowing Team Sheeper to reduce pool hours during off-peak seasons and waiving the city’s revenue share agreement for a few additional months. The remedies would not have put Menlo Swim and Sport in the black. Menlo Swim and Sport would have still had a projected shortfall of $154,000 in the 2025 calendar year.
City Council members Cecilia Taylor and Betsy Nash vetoed any increase to resident and subcontractor fees along with amending the contract. Because Council Member Jennifer Wise was absent, Taylor and Nash’s votes represented half of the council, blocking any motion without support from at least one of them.
“For me, the staff report is asking us to create more barriers. If we really want folks to use the pool, we have to keep the pool open. We have had other providers say they can make (the current arrangement) viable,” Taylor said. “I am not going to create more barriers.”
Menlo Swim and Sport lost $65,000 in the 2024 calendar year. It needs to increase attendance at the city’s Belle Haven pool, which opened May 2024, if it wants to survive. City staff said less than expected attendance could have been caused by mechanical issues right after the pool opened and lack of repeat users. It could also be caused by not enough interested visitors nearby.
Taylor placed the blame squarely on Sheeper.
“The reason why the pool is underutilized is because the way it’s programmed. I don’t even see hours of the pool posted out in front on a banner. I see Menlo Swim advertised, but not the hours of the pool. If you want people to show up, make them feel welcome. That hasn’t happened,” Taylor said.
The council provided direction to city staff to come back with more information, including a detailed list of mechanical issues and other solutions.
In his presentation to the council, Sheeper said that the financial losses happened despite Team Sheeper working hard to meet the city’s “high hopes.” He also said that Team Sheeper was “cautiously optimistic” about the feasibility of the city’s vision.
In November 2023, Team Sheeper and the city signed a contract that Sheeper is requesting the council amend.
Belle Haven pool experienced fluctuations in attendance, particularly during the off-season when usage was “very low.” City staff suggest giving more time to attract regular swimmers who would use the pool year-round.
Taylor and Nash expressed frustration with Menlo Swim and Sport’s management.
Nash initially supported reducing pool hours, but changed her mind upon discovering Menlo Swim and Sport’s lack of responsiveness to senior community requests at Belle Haven pool. Seniors have repeatedly asked that the Aquafit class be moved as it conflicts with the senior center’s lunchtime. When Nash asked Team Sheeper CEO Tim Sheeper if that was a possibility, he responded that the proposal had not been considered.
“I am concerned that the Aquafit has not been brought to the staff. There is outreach by members of the senior community and the fact that it has not even been discussed with staff is disappointing, to say the least,” Nash said.
“When we are stable, it would be very easy to provide a senior Aquafit program at any time of the day,” Sheeper responded. “We are not stable, and that’s why we’re here tonight.”
“What is bothering me is that it is city policy that we are going to help create things, not take them away. This is a public pool that was paid for by the taxpayers and a very generous donor, not (Menlo Swim and Sport). So the hours need to reflect what the public needs. Period. It’s not up for discussion,” Taylor said.
“I am hoping that we can come to some resolution,” Nash said. “Part of a partnership is working together and trying to balance the needs of all parties. I guess I feel that the city has been doing a lot of giving and is now being asked to do a lot more. I’m not feeling that same from Menlo Swim. It feels very much one way right now.”
“It’s difficult to hear you say that it feels one way. Our entire organization is working extremely hard every day to keep this community safe, to keep these pools open, so the community can have full use of them,” Sheeper responded. “For us to come (to the council meeting) tonight is not a very comfortable thing. We’re very proud, very competitive and a strong organization. It’s hard to lay it out on the table and to show you how we are struggling, and we are struggling every day.”
A point of contention between the city and Sheeper has been a perceived lack of transparency. The contract between Sheeper and the city does not require him to disclose specifics of Team Sheeper’s expenses, including executive salaries, which some have argued contributed to the program’s financial troubles.
“We have no information about individual expenses. We only get an aggregate number, which is intentional. The contract was written as a portion of the revenue would be shared with the city, and so it did not matter what the expenses were,” Nash said. “That perspective may be changing as we are looking at profits but we do not have all the pieces.”
Council members expressed concern over the future stability and effectiveness of the partnership between the city and Menlo Swim and Sport. If Sheeper withdrew from the agreement, there would be an immediate decrease in service and there could be pool closures, according to a staff report.
However, council members challenged the assertion that pools would immediately close if Menlo Swim and Sport withdrew. The contract indicates that Sheeper would be required to provide 180-day notice before pulling out of the agreement.
City staff noted in a report that if the city operated the pools itself, it would likely cost an additional $3 million to $4.7 million annually.
The topic has been slated for discussion at future council meetings.