HERMISTON, Ore. — Following executive session on Aug. 25, the Hermiston City Council approved updates to City Manager Byron Smith’s employment agreement that change the city’s deferred‑compensation contribution and permit limited outside consulting with a council‑notification requirement; the car‑allowance change passed as presented and council added a reporting amendment on outside consulting.

What the manager requested
- City Manager Byron Smith asked for three changes: an increase in car allowance (from $450 to $700 per month as described in his request), a change to the deferred compensation arrangement (the city currently provides a matched contribution; Smith asked to convert the match to a direct annual contribution of $10,500, which staff said increases city cost by roughly $900 annually after PERS effects), and permission to accept limited outside consulting work so long as it does not conflict with city duties.

Council review and conditions
- Council members asked clarifying questions about tax and payroll treatment of the car allowance, whether a fleet vehicle is available, and reporting requirements for outside consulting. Councilor Roberts said he opposed the car allowance increase because the city owns shared fleet vehicles and expanding personal car allowances raises costs; other councilors supported the package with an amendment.
- The council approved the contract changes by roll call with a 6–1 vote; Councilor Roberts voted no. The approved motion included an amendment directing staff to prepare language requiring the city manager to notify council of outside consulting engagements (timing and form to be finalized by staff and mayor before execution).

Limits and monitoring
- The manager said any outside consulting would not use city resources and would be scheduled to avoid conflicts with city work. Council requested that staff draft the final contract language to clarify notification obligations and ensure no conflict of interest.

Next steps
- Staff will finalize contract language reflecting the council‑approved changes and the reporting amendment and bring the executed contract back through the appropriate administrative process.