INSTRUCTOR WITH SPI FLIES CLOSE TO ARPT WITH SKYDIVE ACTIVITY. CLOSE PROX WITH SKYDIVERS.

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DEPARTED TRACY ON A VFR FLT PLAN DUAL ON MY STUDENT'S SECOND XCOUNTRY TRAINING FLT. MONITORED TCY; CTAF UNTIL CLR; STUDENT OPENED FLT PLAN WITH RANCHO MURIETA FSS; AND CONTINUED TO CLB TO CRUISE ALT OF 4500 FT. MY STUDENT LEANED OUT THE MIXTURE AND BEGAN LOOKING FOR THE FIRST CHK POINT. IN ADDITION; MY STUDENT WAS ATTEMPTING TO TUNE AND IDENT THE SCAGGS ISLAND VOR AND INTERCEPT THE 107 DEG RADIAL TO THE STATION. AS WE LOOKED AT OUR RTE OF FLT AHEAD; WE COULD SEE WIDELY SCATTERED CUMULUS CLOUDS AT OUR ALT. WE NEEDED TO DEVIATE; WE OPTED TO CLB TO 6500 FT AND INITIATED THE CLB. AS WE LEVELED AT 6.5; MY STUDENT CALLED ULTRA-LIGHT TFC AT 11 O'CLOCK. THAT GOT MY ATTN; BUT I COULD NOT SEE THE TFC BECAUSE I WAS IN THE BACK SEAT OF A CITABRIA; SO I MANEUVERED THE AIRPLANE SO I COULD SEE THE TFC AND REALIZED IT WAS NO ULTRA-LIGHT; BUT RATHER A PARACHUTE; ABOUT 2000 FT BELOW AND ABOUT 11 O'CLOCK. I REALIZED WE WERE CLOSER TO BYRON THAN WAS COMFORTABLE. I INSTRUCTED THE STUDENT TO MAKE AN IMMEDIATE 90 DEG L TURN. ABOUT THAT TIME I SAW 2 SKY DIVERS DIVE THROUGH OUR ALT ABOUT 2500 TO 3000 FT AHEAD OF US AND THE CHUTES OPENED ABOUT 2000 FT BELOW US. I MADE AN IMMEDIATE L TURN OF 90 DEGS FOR A TOTAL HDG CHANGE OF 180 DEGS; CIRCUMNAVIGATING BYRON TO THE E AND S. ASIDE FROM AVOIDING BYRON ALTOGETHER IN THE FUTURE I WOULD MONITOR BYRON'S CTAF FREQ WHEN WITHIN 10 MI; OR CONTACT OAKLAND CENTER FOR FLT FOLLOWING. I BELIEVE THAT IT WAS THE WORKLOAD; CLOUD DEV; AND THE LACK OF MONITORING THE BYRON CTAF THAT CAUSED ME TO GET CLOSER TO BYRON THAN I INTENDED. BELIEVE ME I'VE LEARNED MY LESSON WELL AND IT SHALL NOT HAPPEN AGAIN! CALLBACK CONVERSATION WITH RPTR REVEALED THE FOLLOWING INFO: RPTR STATES HE WAS EXTREMELY BUSY CIRCUMNAVIGATING WX AND INSTRUCTING SPI AND DID NOT REALIZE THEY HAD ARRIVED AT BYRON. HE KNEW THERE WAS SKYDIVE ACTIVITY AT BYRON AND INTENDED TO AVOID THE AREA. NO FAA FOLLOW UP AT THIS TIME.