Agenda Item - 2024-06-18 - Number 07.2 - Resolution 24-14, Compensation for Management and Confidential Positions 7.2
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Subject: Resolution 24-14, Adjusting the Compensation for Management and Confidential
Employees
Meeting Date: June 18, 2024 Staff Member: Martha Bennett, City Manager
Report Date: June 5, 2024 Department: City Manager's Office
Action Required Advisory Board/Commission Recommendation
❑ Motion ❑ Approval
❑ Public Hearing ❑ Denial
❑ Ordinance ❑ None Forwarded
❑X Resolution ❑X Not Applicable
❑ Information Only Comments:
❑ Council Direction
❑X Consent Agenda
Staff Recommendation: Adopt Resolution 24-14, adjusting the compensation for
management and confidential employees.
Recommended Language for Motion: Move to adopt Resolution 24-14.
Project/ Issue Relates To: Not Applicable
Issue before Council (Highlight Policy Question): Does City Council want to adjust the
compensation for management and confidential employees?
❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑S Not Applicable
BACKGROUND
The City of Lake Oswego has approximately 64 regular status employees who are not
represented by labor unions. They are managers and supervisors, and confidential staff. This
group does not include the Charter Officers (City Manager, City Attorney, and Municipal Court
Judge), whose salaries are separately reviewed and set annually each December.
DISCUSSION
Over the past few years, the City has considered salary adjustments carefully, with an emphasis
on fiscal responsibility and sensitivity to the economic climate in our city and region. We also
Respect. Excellence. Trust. Service.
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY
Page 2
need to balance internal equity to avoid compression and remain externally competitive when
recruiting for management and confidential positions.
When evaluating whether or not to adjust the compensation of non-represented management
and confidential staff, Council may consider the following information:
• Consumer Price Index (CPI) for the Western Region Size B-C for December, 2023 is 3.5%.
• Employees represented by LOPOA will receive a 3.5% effective July 1, 2024 based on
language in their collective bargaining agreement.
• The IAFF and the LOMEA/AFSCME collective bargaining agreements are open for
negotiations. Council will be briefed on the status of those negotiations in an executive
session scheduled for June 18, 2024.
For these reasons, we recommend that the Council award a 3.5% COLA to non-represented
management and confidential staff, effective July 1, 2024.
In addition to a COLA increase, staff is recommending a change to how we administer sick leave
for new hires. The City's current practice is that when a new employee begins employment with
the City they accrue eight hours of sick leave per month. Staff is recommending that we move
away from this practice and instead credit new hires with the equivalent of six months sick
leave accrual, which is 48 hours, upon hire. In addition, new employees will not accrue sick
leave during the first six months of employment, but will resume accruing sick leave upon
completion of the first six months of employment. This change in practice will allow new
employees that are sick to use accrued sick leave within the first six months of employment,
and help prevent sick employees from reporting to work due to an insufficient sick leave
balance. Sick leave is not paid out upon separation from employment, so there is no risk of
someone benefiting financially in this regard.
FISCAL IMPACT
For a 3.5% COLA for non-represented management and confidential employees, the estimated
cost for one year is approximately $310,000. This estimate does not include roll-ups. Banking 48
hours of sick leave upon hire is cost neutral, as the employee would have accrued this time
within six months of hire and because there is no payout of sick leave upon separation from
employment. These costs are within what has been budgeted for the biennial 2023-25 budget.
RECOMMENDATION
Approve Resolution 24-14, adjusting the compensation for non-represented management and
confidential employees.
ATTACHMENT
1. Resolution 24-14
Respect. Excellence. Trust. Service.
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY
ATTACHMENT 1
RESOLUTION 24-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO ADJUSTING THE COMPENSATION
FOR MANAGEMENT AND CONFIDENTIAL POSITIONS NOT REPREESNTED BY A BARGAINING UNIT.
WHEREAS,the City of Lake Oswego annually reviews and considers the compensation of its
management and confidential positions (positions not represented by a collective bargaining unit) for
possible adjustments and such adjustments, if any, are made effective July 1 of each calendar year; and
WHEREAS, a compensation increase maintains internal equity to avoid compression and aid with
retention, and enables the City to remain externally competitive when recruiting for management and
confidential positions.
NOW THEREFORE, BE IT RESOLVED,that:
1. Non-represented management and confidential employees are granted a cost of living
adjustment (COLA) increase of 3.5%effective July 1, 2024;
2. Credit non-represented new hires with 48 hours of sick leave upon hire, in lieu of accruing
sick leave monthly for the first six months of employment, effective July 1, 2024;
3. This resolution shall take effect upon passage.
Approved and adopted by the City Council of the City of Lake Oswego at a regular meeting held on the
18th day of June 2024.
AYES:
NOES:
ABSTAIN:
EXCUSED:
Joseph M. Buck, Mayor
ATTEST:
Kari Linder, City Recorder
APPROVED AS TO FORM:
Ellen Osoinach, City Attorney