THOUSAND OAKS : Council to Consider Health Club Deposit

Health clubs in Thousand Oaks may have to prove that they are financially stable if a new ordinance is passed by the Thousand Oaks City Council tonight.

“Over the years, there have been a few health club closings, and people who lost money complained to the city,” City Atty. Mark G. Sellers said.

The law would require that all health clubs operating in Thousand Oaks offer a cash deposit, a letter of credit, or a bond worth $75,000 or 5% of the club’s gross income for the previous year, whichever is greater. The money would be used to pay back unused portions of membership fees if a club closes.

Sellers said five health clubs operate in the city.

Thousand Oaks would be the second city in the state to adopt such an ordinance. In 1987, Santa Monica adopted a similar law in response to one club that had sold prepaid and yearlong memberships and then shut its doors, Santa Monica Deputy City Atty. Kimery Ann Shelton said.

“They were raking in money even while they were filing for bankruptcy,” she said. “We haven’t had any problems since.”