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HomeMy WebLinkAboutMemo - Mail Packet - 10/5/2021 - Memorandum From Aaron Harris Re: Rationale For Termination Of Independent Recreation Contracts - Dance Program Recreation Department 215 North Mason PO Box 580 Fort Collins, CO 80522 970.221.6655 fcgov.com/recreation MEMORANDUM DATE: September 29, 2021 TO: Mayor and City Councilmembers THRU: Kelly DiMartino, Interim City Manager Kyle Stannert, Deputy City Manager Seve Ghose, Community Services Director FROM: Aaron Harris, Interim Recreation Director RE: Rational for Termination of Independent Recreation Contracts Bottom Line City Council requested additional information responding to a concern raised at the September 21, 2021 meeting regarding the termination of select program contracts. As a result of implementing changes to meet legal and IRS compliance, several recreation contracts required updates. Notification of the required changes was provided to 17 independent contractors earlier this month, and all have been provided the opportunity to continue teaching classes as hourly employees, or by renting facility space to offer classes independently. Background In April 2021, the Recreation Department began work to remedy compliance issues related to independent contractors that were identified by Human Resources and the City Attorney’s Office. After learning that there were IRS compliance and legal issues to be addressed, policy updates were developed in consultation with fellow City colleagues including the Purchasing Department, Human Resources, and the City Attorney’s Office. These updates were developed to correct any current contracts that were out of compliance, as well as set appropriate guidelines for the future. Once work was completed internally to understand current policies, and outline a process for moving forward, it became apparent that a select number of agreements with independent contractors would need to be dissolved. The notification of this change of policy was sent on September 16, 2021, to 17 independent contractors, ranging across various program areas in Recreation. The notification explained that contracts would terminate in January of 2022, which provided the impacted contractors with four months to plan for future programming independent of involvement with the City of Fort Collins. There was no direct conversation with the individual contractors to keep the integrity of the process intact with one mode of communication. All contractors of cancelled agreements have been given the opportunity to either apply to become an hourly employee of the City and continue teaching classes, or rent space in a recreation facility and manage programs independently. City staff are hopeful that the contractors will be interested in one of these options and may be able to continue to provide classes in Recreation facilities. DocuSign Envelope ID: D34BBF5C-850B-4B90-A421-2223F36DE834 2 The Recreation Department is committed to the enrichment and development of the youth in our community and will continue to offer high-quality and accessible programming. For youth dance classes specifically, Recreation is currently able to offer programming using existing hourly instructors. The Dance program tallied 938 enrollments in 2019 of which 253 (27%) are participants in the Reduced Fee Program. The amount of class offerings will continue to be monitored and adjusted to reflect community demand and meet cost recovery goals. DocuSign Envelope ID: D34BBF5C-850B-4B90-A421-2223F36DE834