The City offers a wide variety of class opportunities to the community. Many of the classes offered require specialized instruction. The City contracts with qualified instructors to provide these classes for a split fee ratio ranging from 60/40% to 90/10%. For example, in a 70/30% split ratio only 70% of the enrollment fees are paid to the instructor. The remaining 30% of the enrollment fees are kept by the City. The variance between percentages depends on a variety of factors, such as whether the class is being held at a City facility, at the instructor's facility, popularity of the class, and/or longevity with the City.  
 

Municipal Code Section 3.18.060 states that the City Manager is authorized to sign agreements up to and including $50,000 annually or per project. Most of the approximately 30 contract instructor agreements fall within the City Manager's signing authority except for Denean Kaplan and William Bush. They usually generate approximately $75,000 and $150,000, respectively, in annual payments.   

The Community Services fiscal year 2021-22 adopted budget was prepared with the assumption that public health recommendations would continue through the end of calendar year 2021. Budgets were modified to reflect facility closures, cancellation of events, or modifications for COVID-19 health regulations. Public health restrictions lessened in June 2021 which allowed recreation classes to resume. The contracts are for annual amounts starting in January and ending in December, which crosses fiscal years. The budget amendment requested is only for fifty percent of the annual contract amounts to reflect instructor payments from January through June. Future agreement costs will be budgeted for in the appropriate fiscal year. Since these contract services generate revenues through enrollment fees, the budget amendment includes an increase in revenue to reflect the anticipated fees collected. 

This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.), because it does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a "project" that requires environmental review (see specifically 14 CCR § 15378(b)(4-5)).

The proposed budget amendment will increase revenues by $136,800 and expenditures by $112,500 in the Community Services Fund for Fiscal Year 2021-22, increasing the projected ending fund balance by $24,300. Future agreement costs will be budgeted for in the appropriate fiscal year. The General Fund supports the Community Services Fund through transfers based on actual revenues and expenditures throughout the year; therefore, the projected General Fund fund balance will be increased by $24,300.