Lake Oswego council approves separation agreement with city manager, appoints assistant city manager pro tem

LAKE OSWEGO, Ore. — The Lake Oswego City Council on Friday approved Resolution 26-10, authorizing the mayor to sign a separation agreement and general release with City Manager Martha Bennett and naming Assistant City Manager Megan Phelan as city manager pro tem.

"During her tenure, Martha accomplished a great deal of important work that has impacted the day to day lives of everyone in Lake Oswego," the mayor said during the council's special meeting, asking the community to "refrain from the typical speculation" about the departure. The council did not discuss the terms of the agreement at the meeting.

The action came as part of a brief special meeting called Feb. 6. The presiding officer said Bennett will step away from the city manager role later in February and that Phelan, who "is accustomed to this role," will assume pro tem duties. The presiding officer noted Phelan previously served in an interim capacity during the 2019 city manager transition and thanked Deputy City Manager Madison Theissing and the city's legal team for stepping up during the change.

A motion to adopt Resolution 26-10 was moved and seconded; the presiding officer stated the motion was made by Councilor Verduk and seconded by Councilor Winland. The council voted 4-0 to approve the resolution.

The council said it will begin a broader city manager recruitment process and that the appointment of an interim (to follow Phelan's brief pro tem assignment) will proceed as part of that effort. No additional staffing actions or financial terms of the separation agreement were discussed during the public meeting.

The meeting record shows Mayor Buck presided; Councilor Burdick, Councilor Mahbouc and Councilor Wendland were recorded present. Councilors Corrigan, Raff and Afgan were excused. The resolution was introduced and voted on during the special meeting called Feb. 6, 2026.