City Manager Warned to Shape Up : Cerritos: Sources say the City Council has told Gaylord F. Knapp that he faces dismissal within six months if his performance does not improve.

CERRITOS — Three of the five City Council members have told veteran City Manager Gaylord F. Knapp that he faces dismissal within six months if he does not improve his performance, said sources close to Knapp and the council.

The council majority reportedly delivered the ultimatum to Knapp during a closed Aug. 16 session, during which he reportedly received his annual performance review.

Knapp--who in his 17 years as manager guided the transformation of this former dairy town into a tax-rich suburban oasis--refused to comment. City Council members either could not be reached for comment or refused to answer questions about the session.

But during a public session that night, the council unanimously approved two key changes in Knapp’s contract. The council raised Knapp’s severance pay from six to nine months and allowed him to explore other job possibilities. Until then, Knapp was prohibited from looking for other jobs. Knapp reportedly asked for both amendments.

The city manager of a neighboring city said word spread quickly the next day that Knapp, who has close friends in the city manager network, has apparently lost the support of a majority of council members. The source spoke on the condition that he remain anonymous.

“I’ve been getting tons of phone calls,” he said. “It’s no secret.”

According to a City Hall source, two council members wanted to dismiss Knapp the night of the meeting, but failed to obtain a third vote.

The members told Knapp they were concerned about a heavy-handed management style and his inaccessibility, the source said. They reportedly told Knapp that he had to communicate more openly with them, go into the community and mix more with residents, developers and business owners and be more responsive to the press.

Earlier in his career, Knapp refused to allow department heads and other employees to talk to reporters, but the council a few years ago approved a resolution overturning that policy.

Knapp, 47, earns about $101,000 a year. He became city manager at age 30, a year after he went to work for the city as environmental affairs director. Before coming to Cerritos, Knapp was assistant planning director for La Mesa in San Diego County.

He is generally credited with running a tightly controlled city government known for efficiency and for clever use of state redevelopment laws that have allowed the city to lure commercial developers. The city this year has a $20-million reserve in its treasury.

But the composition of the City Council changed in the spring, when incumbents Diana Needham and Barry Rabbitt were unable to run for reelection. The City Charter prohibits incumbents from serving more than two consecutive terms.

“It became a very, very different council,” the city manager source said.

Needham declined to comment on the Knapp situation. Rabbitt is out of the country on vacation.

Sources said Mayor Ann Joynt and Councilman Sherman Kappe favored immediate dismissal, while Councilman Daniel Wong remained a strong supporter of Knapp.

Joynt and Wong could not be reached for comment. Kappe, who was elected to the council this year, declined to comment.

Councilman Paul Bowlen also declined to discuss Knapp’s status but said he was concerned about how the council handled the issues the night of the meeting.

Councilman John Crawley, who was also elected this spring, said: “I don’t think I have been on the council long enough to take any drastic action against the city manager.”